MTAR Technologies Ltd — Q4 FY26

MTAR Technologies Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=7VDhl5IpUlw Published: 15 hours ago

0:00 Ladies and gentlemen, good day and welcome to the MTAR Technology Limited Q4 FI26 earning conference call. As a 0:09 9 seconds reminder, all participant lines will be the listen only mode and there will be an opportunity for you to ask question after the presentation concludes. Should 0:19 19 seconds you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that 0:27 27 seconds this conference has been recorded. I now hand the conference over to Mr. Van Rahin from MUFG in time. Thank you and over to you sir. 0:36 36 seconds Thank you. Thank you Jesus. Uh good morning everyone. On behalf of MR Technologies I extend a warm welcome to 0:43 43 seconds all participant on Q4 and FI26 earnings call. Before we begin the call, I would like to give a short disclaimer. Uh this 0:52 52 seconds call may contain some of the forward-looking statement which are completely based upon belief, opinion and expectation as of today. These 0:59 59 seconds statement are not guarantee of our future performance and involve unforesee risk and uncertaintities. With this I would like to hand over the call to 1:07 1 minute, 7 seconds shinas. Over to you sir. Thank you. Hello and good morning to everyone. 1:17 1 minute, 17 seconds Thank you for taking the time to join us today. Today on the call I'm joined by Mr. Ra, chief financial officer, Miss 1:25 1 minute, 25 seconds Jasi, head strategy and investor relations and capital our investor relations partners. 1:32 1 minute, 32 seconds We have uploaded our updated investor deck press release and results highlights in the soft exchanges and company website. I hope everybody had an opportunity to go through the same. 1:45 1 minute, 45 seconds MTR has achieved a record fourth quarter sales of rupes 306 crores and a bit of 1:52 1 minute, 52 seconds 61.8 crores with fat of about 44.2 crores. For the year we have achieved revenue of 876 crores with a bit of 171.2 crores and fat of 94 crores. 2:04 2 minutes, 4 seconds The outlook for next financial looks very positive and having confidence in execution of orders on hand. We are 2:12 2 minutes, 12 seconds raising our guidance for FI27 from 50% revenue growth to 80% plus 80% revenue 2:19 2 minutes, 19 seconds growth plus - 5% with clear margins of around 24%. 2:26 2 minutes, 26 seconds For the year mainly due to our initial expansion of capacities uh in various sectors in clean energy 2:34 2 minutes, 34 seconds which is already commissioned. Apart from clean energy, the oil and gas plants will also be commissioned by September end and will be fully operational. 2:42 2 minutes, 42 seconds The nuclear and aerospace sectors will contribute in much large larger numbers with nuclear projects being executed 2:49 2 minutes, 49 seconds this year having strong order book and volume production commence aerospace division with certain customers. We can 2:56 2 minutes, 56 seconds also look ahead with confidence in spite of geopolitical crisis as we are now well prepared and we are in much stronger position now to achieve the 3:05 3 minutes, 5 seconds required growth and the required margins as well. 3:10 3 minutes, 10 seconds The closing order book for FI26 is at 2580 crores and we had given a guidance of 2,800 crores. The marginal difference 3:20 3 minutes, 20 seconds is due to some nuclear orders and the defense orders being deferred to the current quarter which does not have any 3:28 3 minutes, 28 seconds impact on our business outlook for this year. 3:33 3 minutes, 33 seconds We have secured orders of 481 crores during the quarter and we are very confident of receiving large orders 3:39 3 minutes, 39 seconds across various sectors uh during FI27 and also we we will end up with a very 3:47 3 minutes, 47 seconds strong order book by end of FI27 much larger than the closing order book of FI26 and the estimated closing order 3:55 3 minutes, 55 seconds book would be close to about 5,000 crores at the end of the year. 4:03 4 minutes, 3 seconds As you're aware, the company has always been strategically positioned to focus on technology incentive and differentiated products and we are now witnessing the results of these efforts. 4:14 4 minutes, 14 seconds Today, exports contribute to majority of our revenues reflecting the vision laid out way back in 2010. The manner in 4:22 4 minutes, 22 seconds which the strategic decisions have unfolded reinforces our confidence in the direction we have taken. 4:29 4 minutes, 29 seconds We are working on several key initiatives which I will now take you through and which we believe are expected to deliver significant outcomes in the coming years. 4:40 4 minutes, 40 seconds Based on the advanced visibility, we have built capacities for our customers in the past and we will be rapidly building capacities in clean energy 4:48 4 minutes, 48 seconds sector during the current year and expand capacities as well as in the subsequent years in this sector based on the customer requirements. 4:58 4 minutes, 58 seconds We will never be any we will never face or the customer would never face any kind of bottleneck in terms of the 5:05 5 minutes, 5 seconds timely deliverables that we're supposed to meet. And the teams are actively engaged in rapidly building these capacities, training their employees and 5:14 5 minutes, 14 seconds ramping up the operations to meet the customers demand. 5:19 5 minutes, 19 seconds Further, we'll be entering into long-term contract with uh another international customer in supplying key infrastructure assemblies for AI data 5:27 5 minutes, 27 seconds centers for which we have already received the first article export orders for rupees 35s and we have a potential of reaching 400 5:36 5 minutes, 36 seconds to 500 crores over the next couple of years. 5:40 5 minutes, 40 seconds This is a significant uh development in the area of clean energy sector which uh we are really excited about at this point of time. 5:49 5 minutes, 49 seconds NTR has been civil nuclear program for more than 35 years and now we have the strongest order book of rupees 60 crores 5:56 5 minutes, 56 seconds plus and all these orders have to be executed over the next 3 to three and a half years. We do have the capacities to 6:04 6 minutes, 4 seconds address the orders and we are expecting more orders in the areas of refurbishment of reactors and also reactors new reactors during the current 6:12 6 minutes, 12 seconds financial year. This again will be on the growth path yearon-year basis based on strong order book and execution 6:20 6 minutes, 20 seconds capabilities of the company having rich experience in the field over the years. 6:26 6 minutes, 26 seconds Another vertical of NPR being the defense and aerospace business vertical and we have orders for more than 360 6:33 6 minutes, 33 seconds crores and the business has demonstrated tremendous growth and continues to hold strong long-term potential. We are 6:40 6 minutes, 40 seconds create we are catering to several repeated MNC customers in this segment and we have already commenced volume production 6:55 6 minutes, 55 seconds and we are also working on yeah and we are also working on the first article at the same time 7:03 7 minutes, 3 seconds the first articles for IIA should be completed by September of this year and should enter into volume production by October. 7:10 7 minutes, 10 seconds In the current financial year, we are gearing up our capacities in this sector as well to handle the increased orders from these customers. 7:19 7 minutes, 19 seconds In the domestic defense business, we are focusing on various programs of defense mainly landing grades, structural assemblies for various aircraft 7:27 7 minutes, 27 seconds programs, actuator assemblies programs etc. And we are moving in the right direction in this segment and we 7:34 7 minutes, 34 seconds are very positive of building this segment in a much bigger manner moving forward. 7:40 7 minutes, 40 seconds The product division is moving in the right direction with revenues increasing year-on-year basis and for the current year we should cross more than 200 crores in this segment itself. 7:52 7 minutes, 52 seconds We're already qualified now for various ball screw supplies to even MNC customers as well during the last financial year and moving forward we 8:01 8 minutes, 1 second expect a lot more orders to come in in terms of supplies of balls to these MNC customers. 8:09 8 minutes, 9 seconds Finally, it has been a great year with a positive operating cash flow of 196 crores and we ended with net working capital days of 172 days compared to the previous quarter of 278 days. 8:21 8 minutes, 21 seconds We'll continue to focus on NWC in the coming quarters as well. 8:27 8 minutes, 27 seconds I would like to thank all the team members of MDR for their exceptional efforts during the year and their continued focus and dedication towards 8:35 8 minutes, 35 seconds achieving uh the growth of the company and moving forward as well. uh the entire focus is 8:42 8 minutes, 42 seconds going to be purely on achieving the required uh growth and delivering the required uh products to the customers on a timely basis. 8:53 8 minutes, 53 seconds Uh I would now hand over the call to uh our chief financial officer who will take you through in detail with regards 9:00 9 minutes to all the financial information of the company. Thank you. 9:06 9 minutes, 6 seconds Uh thank you Mr. Sasi. Uh hello everyone, good morning. Uh thank you for joining us on the earning call. Uh we 9:14 9 minutes, 14 seconds delivered a robust performance in FI26 registering a strong growth compared to the corresponding period last year. I 9:23 9 minutes, 23 seconds would love now like to take you through the company's financial performance for the year. Uh overall the company witnessed healthy growth on both YI and 9:32 9 minutes, 32 seconds quarter and quartad basis driven by strong execution across key business segments. 9:39 9 minutes, 39 seconds When comes to the fullear performance in FI26 versus FI25, uh revenue from operation stood at 876 9:48 9 minutes, 48 seconds crores in FI26 addage to 676 crores in FI25 which is around 30% increase in Y. EITA 9:58 9 minutes, 58 seconds reported at 171 crores in the FI26 as compared to 121 crores in FI25 an 10:05 10 minutes, 5 seconds increase of 41.7% increase. uh when it comes to profit before tax 126 crores in FI26 as against 10:15 10 minutes, 15 seconds 72 crores in FI25 uh which is almost 75.1% increase in Y 10:22 10 minutes, 22 seconds profit after tax was at 94 cr in FI26 as against 53.4 cr in FI25 10:30 10 minutes, 30 seconds uh registered a 76.2% 2% increase when compared to quarter 4 FI26 versus quarter 4 FI25. 10:42 10 minutes, 42 seconds Our revenue for this quarter is quarter 4 is 306 cr in FI26 as against 183 crores in FI25. 10:52 10 minutes, 52 seconds EITA reported at 62 cr in FI26 as compared to 34 cr in FI25. an increase of 81% 11:01 11 minutes, 1 second uh in compared to the previous year fourth quarter profit before tax stand at 59.5 cr in FI26 as against 18.6 6 crores in FI25. 11:14 11 minutes, 14 seconds Profit after tax was at 44 crore in FI26 as against 14 cr in FI25 which is an almost 222% increase on Y basis. 11:27 11 minutes, 27 seconds We are witnessing a strong growth across sectors in which the company operates. 11:32 11 minutes, 32 seconds Uh amid this positive moment the company continues to maintain strong focus on cash flow discipline, prudent capital 11:40 11 minutes, 40 seconds allocation and effective working capital management. Our working capital days stood at 172 cr during FI26 11:48 11 minutes, 48 seconds when compared to Q3 or 267 days which is supported by various initiatives taken 11:55 11 minutes, 55 seconds by the company including better payment terms with the customers. 12:01 12 minutes, 1 second The company is targeting to maintain a working capital level at a similar levels by end of the current fiscal year. 12:10 12 minutes, 10 seconds Our gross margins are are at 47.7% and when compared to last year 49.4% 12:18 12 minutes, 18 seconds were also impacted due to increased input prices of consumables and other fried cost amid prevailing geopolitical 12:27 12 minutes, 27 seconds uncertaintities. Our EITA margin is at 171 crores uh which is 19.5%. 12:34 12 minutes, 34 seconds We have guided around 20 20% plus or minus 1%. 12:40 12 minutes, 40 seconds 21% was plus or minus 1% we guided and we achieved 19.5%. 12:45 12 minutes, 45 seconds which is due to the gross margin impact due to prevailing uncertaintities in geopolitical regions and also 12:54 12 minutes, 54 seconds uh increased headcount due to ongoing expansions activities in the company. 13:02 13 minutes, 2 seconds Our ROC is at 17.2% versus 11.4% 4% in the last year where also we are also 13:09 13 minutes, 9 seconds expecting a significant growth going forward due to increased turnover and also our margins will improve improve 13:16 13 minutes, 16 seconds significantly as our MD has already indicated. Uh we we will have a better operating leverage and also increase the 13:25 13 minutes, 25 seconds turnover will allow us to give contribution to the company. 13:30 13 minutes, 30 seconds Our P is at 10.7% versus 7.8% 8% compared to the previous year. Uh this also will improve in the current 13:38 13 minutes, 38 seconds financial year due to increased turnover and margins. 13:43 13 minutes, 43 seconds Our other important aspect we would like to highlight is our cash flow from operations are 196.9 crores in this 13:50 13 minutes, 50 seconds fiscal year compared to 191 crores in the last financial year. This is mainly due to the margins, additional margins 13:59 13 minutes, 59 seconds and also the better payment terms negotiated with customers and we are continuously monitoring uh the working 14:07 14 minutes, 7 seconds capital in every line item we are monitoring and we'll see that we will achieve the uh further improvement in the cash flow from operations. 14:18 14 minutes, 18 seconds Uh we believe that the road ahead is highly promising and we are actively focused on expanding capacities, 14:25 14 minutes, 25 seconds diversification into new vertical, strengthening our customer base across all existing segments. 14:34 14 minutes, 34 seconds While the opportunities are ahead are exciting, we we remain equally committed to addressing potential challenges 14:42 14 minutes, 42 seconds proactively to sustain our growth momentum over the long term. 14:46 14 minutes, 46 seconds Thank you everyone for your continued support and uh we thank you all the stakeholders of the company for their 14:54 14 minutes, 54 seconds continuous trust and confidence reposing on us. Thank you everyone. 15:00 15 minutes Now we open the floor for the question and answers. 15:06 15 minutes, 6 seconds Thank you. We'll now begin the question and answer session. Anyone who wishes to ask question may press star and one on 15:13 15 minutes, 13 seconds their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. 15:21 15 minutes, 21 seconds Participants are requested to use answered while asking a question. Ladies and gentlemen, we'll wait for a moment while the question Q assemble. 15:32 15 minutes, 32 seconds The first question is from the line of Mitkumar from ICICI securities. Please go ahead. 15:39 15 minutes, 39 seconds Yeah, good morning sir and thanks for the opportunity and congratulations on a very very good year. Uh my first 15:46 15 minutes, 46 seconds question is is it possible to break your revenue expectation of 80% growth or roughly around 16 billion I think revenue are expecting for FY27. 15:56 15 minutes, 56 seconds How much do you expect to come from the clean energy in nuclear and defense? Probably break a couple be helpful. 16:04 16 minutes, 4 seconds Basically the clean energy uh sector would be around close to about uh 70% and the rest would be all the other verticals. The absolute numbers of the 16:14 16 minutes, 14 seconds other verticles are also phenomenally growing year on year basis which is very good but the clean energy segment is growing much faster. Uh that's where we 16:23 16 minutes, 23 seconds are understood. My second question is given your order book expectation of order backlog expectation of 50 billion which 16:31 16 minutes, 31 seconds means that expecting order inflow of approximately 40 billion right in FY27. 16:37 16 minutes, 37 seconds uh can this break up this number also between clean energy, nuclear and defense your expectation, broad expectation? 16:46 16 minutes, 46 seconds No the orders are going to flow in mainly from clean energy and all the other sectors. If you remember I've said about the oil and gas we talked about 16:53 16 minutes, 53 seconds the defense and aerospace sectors which we are in advanced stage in volume production as well. So the order info would come in from various directions uh 17:02 17 minutes, 2 seconds for different verticals but we are very confident of uh having the closing order book around 5,000 crores by the end of 17:10 17 minutes, 10 seconds this year uh mainly in clean energy and the other sectors as well which we are uh in 17:18 17 minutes, 18 seconds advanced stage of execution with various customers and we have proven our quality and uh timely deliverables to all the customers in various sectors at this 17:26 17 minutes, 26 seconds point of time. My last question on nuclear sir are you seeing the tender for refurbishment of reactor or 17:34 17 minutes, 34 seconds something like Mahib Baswara tender getting floated or is to having some conversation around those opportunities. 17:42 17 minutes, 42 seconds Yeah absolutely see uh my basada is new reactors which is called the ashin project uh in joint collaboration with NGPC and MPCL. 17:52 17 minutes, 52 seconds So those tenders are expected this year. 17:54 17 minutes, 54 seconds The refurbishment reactors were already quoted and uh that's why I said that around 250 crores of orders were deferred for this quarter. We are pretty 18:03 18 minutes, 3 seconds confident of uh getting those orders but it does not have any impact on our business office for this year. 18:09 18 minutes, 9 seconds Understood. M are there any other opportunity for revision of reactor in the near future in this fiscal part? 18:18 18 minutes, 18 seconds Yeah. Yeah. Absolutely. Yeah, I mean it's a continuous process, right? We have lot more reactors right now and as in when the reactors are taken for 18:26 18 minutes, 26 seconds repurishment and entire an opportunity to participate in that. Understood sir. Thank you. Best of sir. 18:33 18 minutes, 33 seconds Thank you. 18:36 18 minutes, 36 seconds Thank you. The next question is from the line of Bala Murali Krishna from Oman Investor Advisor. Please go ahead. 18:48 18 minutes, 48 seconds Good morning. Can you please repeat? 18:57 18 minutes, 57 seconds Uh bala can be clear because the voice is not that clear. 19:05 19 minutes, 5 seconds Come more closer to your answer. Yeah. Thank you. 19:08 19 minutes, 8 seconds Yeah. Is it fine now? Yeah. Could you please repeat on 27 and 28? 19:15 19 minutes, 15 seconds No, I've said uh we are based on uh the kind of uh uh requirements by the various customers that we have and the 19:24 19 minutes, 24 seconds latest uh uh inputs that we have. It is very clear that we have uh uh the 19:31 19 minutes, 31 seconds guidance will would be now from earlier we mentioned as 50% of revenue growth but now it will be around 80% plus minus 19:39 19 minutes, 39 seconds 5% around that area and also the margins will be around close to about 24%. 19:48 19 minutes, 48 seconds So I'm in the bloom side. So we are having some capex plans. So uh are you on track and uh do you have anything uh uh to post on those plans? 20:01 20 minutes, 1 second No, we are on track as I mentioned earlier uh in my uh speech that we have already commissioned the initial phase 20:08 20 minutes, 8 seconds of expansion which is very good and that's into uh uh we're also training the employees and ramping up the whole thing. So that's already done uh in 20:17 20 minutes, 17 seconds terms of the initial phase and now we are moving into the uh rapidly moving into the additional capacities that uh we are planning during the current financial year. 20:28 20 minutes, 28 seconds Okay. Lastly on this AMA any updates of the joint we have planned uh collaboration with 20:35 20 minutes, 35 seconds further on that there is no further update of that as of now. 20:42 20 minutes, 42 seconds Okay that's confident. 20:47 20 minutes, 47 seconds Thank you. The next question is from the line of Renu Bulgalia from IFL Capital. Please go ahead. 20:57 20 minutes, 57 seconds Yeah. Hi good morning. um and congratulations for this um healthy performance. Um so my first question um 21:04 21 minutes, 4 seconds to you is um while one of I think one of the largest customer energy um has rolled out a pretty aggressive uh 21:12 21 minutes, 12 seconds multiple capacity expansion plan in the US. Uh what would be your capeex plan over the next two to three years? And uh 21:20 21 minutes, 20 seconds I'm not sure if you can quantify or not um but um uh are you also looking uh for a multiffold expansion in your 21:27 21 minutes, 27 seconds manufacturing um capacity? Uh your revenue growth tend to indicate significant uh jump in the growth potential as well. 21:37 21 minutes, 37 seconds Uh absolutely yes. Uh we are obviously we had multiple calls and we are uh rapidly focusing on additional 21:45 21 minutes, 45 seconds capacities. Uh we are doing that. We can't uh disclose the numbers as such because we have signed NDA but we are uh 21:53 21 minutes, 53 seconds moving ahead with uh rapidly with multiple capacity expansions uh required uh by the customers and customer and uh 22:02 22 minutes, 2 seconds that's on track right now. Now we are uh uh focusing the entire team is focusing on that and not only on the capacities 22:09 22 minutes, 9 seconds but also uh we are training the parallelly training the employees and moving forward with it uh so that these 22:18 22 minutes, 18 seconds capacities can be utilized with the best of efficiency and also we are incorporating uh automation as well 22:25 22 minutes, 25 seconds wherever required uh so that uh the manpower dependency also comes down to a larger extent. Not everything can be 22:33 22 minutes, 33 seconds done uh we can do automation but wherever possible we are doing that. So more or less we are uh right on track 22:42 22 minutes, 42 seconds with what uh the customer needs and uh we are entirely focusing on that and uh 22:49 22 minutes, 49 seconds we you'll see uh uh the capacity is coming into play uh by end of this year and again uh 22:58 22 minutes, 58 seconds uh next year as well. So everything is on track as far as the implementation plan uh for building additional 23:06 23 minutes, 6 seconds capacities are concerned and as far as the cex is concerned it's a rough figure uh we have we're looking at around 250 23:15 23 minutes, 15 seconds to 300 cores of cex uh which uh we looking at uh to build all these capacities multiple capacities for the 23:23 23 minutes, 23 seconds customer and this 250 to 300 core capeex is for 2728 2 Yeah, it's split over two years, not 23:31 23 minutes, 31 seconds exactly one year. So, Got it. Sure. Uh and so just I'm curious on this fact given that the customer is doing multiffold um do you think um 23:40 23 minutes, 40 seconds there could be more vendors which could be added on the supply side and um how confident are we on the um on Empire 23:48 23 minutes, 48 seconds broadly retaining its uh wanted share with the customer? 23:54 23 minutes, 54 seconds No, we really not concerned with that because uh we know it's learning curve is very steep in this and uh we have enough on our plate uh doesn't really 24:02 24 minutes, 2 seconds matter to us at all and uh it's uh not easy to establish this technology and 24:09 24 minutes, 9 seconds also to ramp up at the same time and uh we have been satisfying the customer over the last 10 15 24:17 24 minutes, 17 seconds years now. So we have been working with them together as uh genuine partners and we strongly believe that we will adhere 24:25 24 minutes, 25 seconds to their uh requirements uh over the over the coming years uh very comfortably. So we are not really worried about that. 24:33 24 minutes, 33 seconds Super. So second um pretty impressive I think last few years one of the persistent concerns was working capital 24:40 24 minutes, 40 seconds stretch um and impact on cash flows. So good to see that working capital finally started to improve cash flows. OCS is 24:48 24 minutes, 48 seconds near 25% of AITA along with growth. Um so um the the question here is um now that we are looking at significant step 24:56 24 minutes, 56 seconds up on the revenue side uh nearly 70 80% plus revenue growth um do we expect these um OCS to Abita to broadly sustain 25:04 25 minutes, 4 seconds at these levels and um you've guided for similar networking capital cycle um so um are we expecting um the um advances 25:13 25 minutes, 13 seconds from customer to broadly sustain uh going forward as well? 25:18 25 minutes, 18 seconds No, basically uh we have negotiated uh good payment terms with various customers not necessarily with one particular customer looking at the kind 25:27 25 minutes, 27 seconds of requirements they have and we have clearly told them that uh the terms have to be much better to improve our working 25:34 25 minutes, 34 seconds capital days and also looking at our operating cash flows being positive. So this is a continuous end wave from our 25:42 25 minutes, 42 seconds side and you will see improvements happening uh during the current financial year as well. So we will sustain those margins uh pretty 25:49 25 minutes, 49 seconds comfortably right now and uh we are on track with that. So as far as the improved guidance is concerned or the margins are concerned we are very clear. 25:58 25 minutes, 58 seconds We have done all the analysis over the last couple of months in spite of uh the current geopolitical situation. uh we 26:08 26 minutes, 8 seconds are pretty confident that uh uh we are much in a much stronger position today uh to confidently say that we'll be able to achieve this. 26:17 26 minutes, 17 seconds Sure. 26:17 26 minutes, 17 seconds And this last question um while our debt for the year overall has increased to about most 350 cr um how are we looking 26:24 26 minutes, 24 seconds at uh the borrowing level or debt levels uh to be over the next two years 27 28 you want to answer that. 26:34 26 minutes, 34 seconds Hello. 26:35 26 minutes, 35 seconds Yeah, our see presently we need to raise a debt for the increased expansion plans. So we have considered in our 26:42 26 minutes, 42 seconds metrics debt is an option to go ahead as far as today is concerned. So uh every year we are also repaying and also we 26:50 26 minutes, 50 seconds are increasing a debt of term loan. We are increasing uh we are able to negotiate it at a better payment terms 26:57 26 minutes, 57 seconds which is INR inrans we are negotiated at a better term. So for the time being our 27:04 27 minutes, 4 seconds debt to equity ratio is very healthy. So there is no issue of raising a debt and we will see that uh we repay the debt as 27:13 27 minutes, 13 seconds fast as possible and uh the capacity expansion is requires a capital either you need to go for debt or uh uh for 27:21 27 minutes, 21 seconds raising a capital from the uh external sources but we are doing on the debt basis as of today. 27:28 27 minutes, 28 seconds Perfect. any targeted levels for 1527 on the debt side end of the year number. 27:33 27 minutes, 33 seconds Uh see like what like that side today we are at we wanted to maintain a debt equity ratio of for next two years 0.5 27:42 27 minutes, 42 seconds uh in the range of around 0.5 uh we'll see how it goes. 27:47 27 minutes, 47 seconds Perfect. Um thank you and best wishes please. Thank you. 27:52 27 minutes, 52 seconds Thank you. A reminder to all participants please restrict yourself to two question. The next question is from the 28:00 28 minutes line of Sumil Jane from Lucky Investment. Please go ahead. 28:05 28 minutes, 5 seconds Hi, thanks for taking my question. Uh so you know you've indicated multiple capacity expansions on the hot boxes 28:12 28 minutes, 12 seconds side. uh I understand that you cannot give a quadrative number but is is the number going to be significantly higher 28:20 28 minutes, 20 seconds than the previously mentioned uh number of boxes you know on the previous calls as you've discussed if you could give some sense 28:28 28 minutes, 28 seconds directionally on uh you know uh the capacities on on side 28:35 28 minutes, 35 seconds yeah absolutely so when I said multiffold uh capacity expansions we're working on it obviously the numbers are significant ificantly higher. Uh as I 28:44 28 minutes, 44 seconds said I can't specify uh the quantify the details but yes uh absolutely it's uh on a significantly higher set. 28:54 28 minutes, 54 seconds Got it. Now on fluence I see that uh that customer has been dropped from the you know the customer list that you 29:02 29 minutes, 2 seconds mentioned on the presentation. Can you give a sense on uh that uh project? 29:09 29 minutes, 9 seconds Now I told this in the last earnings call itself that fluenc is that still deliberating because uh of the various 29:17 29 minutes, 17 seconds factors on the duties imposed on batteries and various other things for exports. Uh so this is something which 29:25 29 minutes, 25 seconds uh we have done the prototype for them but they're still deliberating it. So we have dropped it because uh we have enough on our plate right now and as in 29:33 29 minutes, 33 seconds when they have the requirements we already done the prototypes for them so we can move ahead with them whenever they're ready with it. It's still open 29:40 29 minutes, 40 seconds but it's not a closed door situation but uh I think uh about it unless I see some traction on that. So let's see how it goes. 29:51 29 minutes, 51 seconds Got it. Now finally if you could give us a sense of the opportunity size with the new customer onboarded for AI data 29:59 29 minutes, 59 seconds centers and also on the SBR uh as you you know recently mentioned on an interview if you could you know give us a sense in the next two three years what 30:08 30 minutes, 8 seconds these uh businesses could look like in terms of either audit or execution. 30:14 30 minutes, 14 seconds I did mention about the uh data center infrastructure with another customer as well. That's really another 30:23 30 minutes, 23 seconds milestone for the company in terms of diversifying and getting more into the AI data center business opportunities that we are doing. We've already 30:32 30 minutes, 32 seconds received the first practical order for that which is about close to about 35 crores and then as I said over the next couple of years uh if everything goes 30:40 30 minutes, 40 seconds well we're looking at almost like 400 to 500 crores of revenues being generated from that and uh we are looking at a separate uh we already have uh the basic 30:49 30 minutes, 49 seconds infrastructure for that to deliver the orders for the first articles and as well as uh uh certain volume production 30:57 30 minutes, 57 seconds that they need and based on how it goes we will try to build infrastructure for them as well in the coming years. And as 31:05 31 minutes, 5 seconds far as the FBR is concerned, that's uh a long uh uh we worked on major assemblies 31:13 31 minutes, 13 seconds for the ABR for uh long time back and finally it went critical. So hopefully uh we have done a major contribution for 31:22 31 minutes, 22 seconds that for that project and as and when the government decides to add in a few more reactors and we will have definitely an opportunity to work with that as well. 31:34 31 minutes, 34 seconds Can I squeeze in another question if that's okay? Yeah, it's fine. Go ahead. 31:40 31 minutes, 40 seconds on the oil and gas side. Uh so uh some of our other peers have mentioned uh you 31:48 31 minutes, 48 seconds know signing of major contracts, multi-year contracts with the same customer that we quote. If you could help us understand the opportunity size 31:56 31 minutes, 56 seconds or the total machine parts procurement with each of these oil and gas customers and how much is is currently being 32:04 32 minutes, 4 seconds sourced from India, how much can incrementally resourced from India and your competitive positioning in that space. 32:11 32 minutes, 11 seconds Yeah. So as I said uh the planned so you have done successfully the first articles for the customer and they really appreciated our quality and the 32:20 32 minutes, 20 seconds kind of work we have done for them. uh this is on the whip stock assemblmeies which uh we have done for them and uh 32:28 32 minutes, 28 seconds obviously the potential is around 35 to $40 million over a period of time as and when we get into the major volume 32:36 32 minutes, 36 seconds production and also we're adding lot more customers in the oil and gas we're just not depending on one customer we are looking at the other customers which 32:44 32 minutes, 44 seconds we have received orders as well for first articles going on track with it and the good news is that the main plant is going to be 32:51 32 minutes, 51 seconds operation by September. So it's like a chicken and egg story, right? And you need to have a real dedicated plant for 32:59 32 minutes, 59 seconds this which is going to grow very rapidly over the next 5 to 10 years the way things are going right now. And that's we are right on time with the kind of 33:07 33 minutes, 7 seconds facility we have and this sector would grow very rapidly moving forward as well. 33:15 33 minutes, 15 seconds All right. Thanks a lot. I'll join back to K. Thank you. 33:20 33 minutes, 20 seconds Thank you. The next question is from the line of Vipra Shastava from Philip Capital. Please go ahead. 33:28 33 minutes, 28 seconds Oh yeah. Hi sir. Good afternoon. Quickly sir on the hedging policy given that you know we have received a very large other income because of currency depreciation. 33:37 33 minutes, 37 seconds So any light you can throw on the hedging policy and what kind of other income we can expect in coming years? Yeah. 33:44 33 minutes, 44 seconds You want to answer that please? 33:48 33 minutes, 48 seconds Uh can you come again? 33:51 33 minutes, 51 seconds Uh sir on the heding policy sir given that you know there is a lot of currency depiction which has happened and hence he has received other income. So what is the heading policy and you know what kind of range we can look at for FY27. 34:03 34 minutes, 3 seconds So on the revenue side you are talking correct other income so currency depreciation and other income coming in income today we are we have 25 crores 34:12 34 minutes, 12 seconds mainly because of the uh foreign exchange gain we have re received in this year. So we will anyway it is a 34:21 34 minutes, 21 seconds real mostly a real and someone is something is unreledged forex gain also is there and in the current financial 34:30 34 minutes, 30 seconds year also we are witness we have spoken to the bankers many people uh the US the dollar will be in the similar range and 34:39 34 minutes, 39 seconds it will further rupee will depreciate that is what the forecast is showing so that uh that that way also we will gain 34:48 34 minutes, 48 seconds in terms of the you know foreign exchange fluctuations will help us because uh more than 70% our revenues 34:56 34 minutes, 56 seconds from the exports only imports are maximum 30 to 35%. So thereby we will gain on this also. 35:05 35 minutes, 5 seconds Sure. Thank you. Thank you. Thank you. 35:06 35 minutes, 6 seconds That's all from my Thank you. Thank you. 35:09 35 minutes, 9 seconds Thank you. The next question is from the line of meet Jen from Motila Los. Please go ahead. 35:19 35 minutes, 19 seconds Hello. I'm audible. Yes sir you are. Please go ahead. 35:22 35 minutes, 22 seconds Hi thank you for the go ahead. Thank you for the opportunity opportunity sir. a very good set of numbers and a very strong guidance. So my one question and 35:32 35 minutes, 32 seconds most of the questions are answered. My one question is regarding this MARA jet landing error support. So just want to understand can you throw some more light 35:39 35 minutes, 39 seconds on this key what the quantum of the size and what uh at what level currently are we in this this and which what are which are the customers for this? 35:50 35 minutes, 50 seconds No basically it's in the initial stage right now. Uh silica you want to answer this question because you are handling this are there 35:59 35 minutes, 59 seconds it's a 4 cr order mean okay so what we understand earlier that we were 36:08 36 minutes, 8 seconds so we were there are hello hello yeah yeah please 36:18 36 minutes, 18 seconds yeah I was not able to hear you I was not able to hear you earlier okay Okay. So, uh it's a 4 crore order 36:26 36 minutes, 26 seconds which we got and uh it's the first structural assembly which we managed to win for AMA. So, right now we are floating the tenders for structural 36:35 36 minutes, 35 seconds assemblies and uh we have uh started participating um in all the tenders and we are one of the eight qualified 36:43 36 minutes, 43 seconds vendors for these uh structural assemblies. 36:47 36 minutes, 47 seconds So this is similar to what we were doing along with Adani group that we didn't receive or this is something different because that was also for AMA project 36:55 36 minutes, 55 seconds different tender. Yeah, that is different and this is different because uh both are for AMA that is for the entire integration of AMA aircraft but 37:04 37 minutes, 4 seconds parally there are tender going on for structural assemblies of AMA and there are only uh eight qualified vendors who 37:12 37 minutes, 12 seconds can participate in these uh structural assemblies. 37:17 37 minutes, 17 seconds Understood. Uh second question is on this new client that we added SLB in both our oil and gas and clean energy. 37:23 37 minutes, 23 seconds So going ahead whatever revenue that we record we'll be putting in the same head of as a fuel cell or we'll be getting a separate head for this. 37:33 37 minutes, 33 seconds No it'll be in the clean energy se segment as such uh need as far as the uh data center infrastructure is concerned 37:41 37 minutes, 41 seconds as far as the uh assemblies for oil and gas will go into the oil and gas uh so currently sir we are doing the 37:49 37 minutes, 49 seconds prototyping work for them right now right? Yeah, that's right. Okay. 37:56 37 minutes, 56 seconds As I mentioned, they in multiple they are in multiple segments not only in oil and gas but also into the infrastructure 38:04 38 minutes, 4 seconds building for the data centers. So both so they'll go in the respective segments. 38:09 38 minutes, 9 seconds Understood. And the last question on this uh like as you mentioned that we have received some better payment terms 38:16 38 minutes, 16 seconds and also we see some advances Apple advances that take payment from the customers. So this will be a normal uh 38:24 38 minutes, 24 seconds let's say norm going ahead or this is a one time advances that we receive. 38:29 38 minutes, 29 seconds So it's it's not about anything when I say uh we're talking about uh better payment terms it's a multiple factors right it is not about advances it's 38:38 38 minutes, 38 seconds about better payment terms in terms of credit period and all multiple factors which we have negotiated with not just one customer with multiple customers the 38:47 38 minutes, 47 seconds way we are growing we felt that we should uh we are in a position to uh uh discuss with our customers and ensure 38:56 38 minutes, 56 seconds that we are on track with their requirements ments the kind of volumes that grow growing up and the demand which has been created. So we are able 39:04 39 minutes, 4 seconds to do that uh in a more efficient manner right now and this will be a continuous process. There's nothing like one time as uh as you mentioned it will be a 39:12 39 minutes, 12 seconds continuous thing and we'll sustain it moving forward as well to maintain our working capital and the number of days and operating taxes. 39:21 39 minutes, 21 seconds Okay, that's great to know and so sorry if one more question. uh the 20% kind of growth that we emphasize for FI27 how it 39:29 39 minutes, 29 seconds will be backended for H2 will be major or it will be well spread out between all the quarters 39:36 39 minutes, 36 seconds that's a very good question you ask so if you look at last year it was we had a weak first half right and a strong second half but this year it will be 39:45 39 minutes, 45 seconds we'll have a very good first half and a much better second half that's what it's going to be 39:51 39 minutes, 51 seconds okay sir thank you so much for the Thank you. The next question is from the line of P Seal Dasani from Sundaram Alternate. Please go ahead. 40:04 40 minutes, 4 seconds Yes. Hi sir. Uh congrats for a good set of numbers. So my first question is on the gross margins. There is a uh 190 40:11 40 minutes, 11 seconds basis point sequential depth. Uh so can you please help us understand the reasons for that? Has there been any renegotiations with our customer in 40:20 40 minutes, 20 seconds clean energy? Absolutely not. It's it's not about negotiation on the price. It's about deliverables right 40:28 40 minutes, 28 seconds now. So there's enough uh requirement by not only in one customer but various customers that we have and uh it's 40:36 40 minutes, 36 seconds purely uh because of uh the last quarter was mainly uh certain costs have gone up because of all of you are aware about 40:44 40 minutes, 44 seconds certain geopolitical situations. our input costs have gone up on the operation side but that's very marginal 40:51 40 minutes, 51 seconds so I think as I mentioned earlier we are pretty confident and strong enough right now to uh you know to adhere to the 40:59 40 minutes, 59 seconds margins that we have said right now and also the revenues that we have declared the guidance what we've declared so 41:06 41 minutes, 6 seconds there is no portion of uh uh reduction in prices or anything like that that's 41:12 41 minutes, 12 seconds out out that's not the Sure sir. Uh so my next question is on the capeex plan where you have talked about 41:20 41 minutes, 20 seconds this 250 to 300 crores and the multiffold capacity expansion which we have talked about. So so this would 41:27 41 minutes, 27 seconds ideally lead to a much higher much much higher asset turn for us versus what we are currently doing. So it do you think 41:36 41 minutes, 36 seconds this absolutely yes. Yeah. 41:40 41 minutes, 40 seconds Okay. So do you think this is sufficient enough to cover cover for growth for next 2 three years? 41:49 41 minutes, 49 seconds No see we are going step by step right when I say multiffold capacity expansions in various sectors uh is 41:56 41 minutes, 56 seconds purely based on the demand what we have not just for this year for the coming years as well. So we are planning year-on-year basis. Uh so that's how we 42:06 42 minutes, 6 seconds are implementing the whole plan based on the customer needs and uh which is very promising for us right now and since we 42:13 42 minutes, 13 seconds are in this line for many years uh it becomes that much more easier for us to implement uh the capacities and also to 42:21 42 minutes, 21 seconds execute them. See execution is the most important aspect of it and we are pretty confident about it. The way we are uh increasing our headcount, the management 42:30 42 minutes, 30 seconds bandwidth and also training the required people to get them qualified. We are doing that ahead of time and we always 42:37 42 minutes, 37 seconds had these capacities in the past as well ahead of time and which has actually given us a very good result uh because of having such capacities and we're 42:45 42 minutes, 45 seconds doing the same thing even now and this time around it is purely based on the demand which has been told to us and the visibility which has been given by our 42:53 42 minutes, 53 seconds customers. That's how we are moving forward. Awesome. 42:58 42 minutes, 58 seconds And just lastly on this nuclear execution we have I think around 700 crores of order book. So what kind of revenue should we assume for this year? 43:07 43 minutes, 7 seconds Because I think you have said that in next 3 years we assume the execution of the current order book. 43:16 43 minutes, 16 seconds Yeah. See we have to execute over the next three three and a half years. uh some of them are like close to four years but most of the orders should get 43:25 43 minutes, 25 seconds executed in the next three three and a half years so you'll see a real upurge in revenues in the current year moving forward as well even higher revenues 43:32 43 minutes, 32 seconds that's why I mentioned that uh we are in a very sweet spot in in terms of nuclear division because we never had this kind 43:39 43 minutes, 39 seconds of order book in the past and this order book will continue to grow actually because lot of even uh if you look at over the next 50 years a lot of private 43:47 43 minutes, 47 seconds players are also coming with uh this program nuclear program which is uh announced by government of India and uh so we have the enough infrastructure to 43:56 43 minutes, 56 seconds handle this because we have been in this line for 35 plus years so this will be on the growth path for sure 44:04 44 minutes, 4 seconds uh that's it from my side thank you and all the best thank you thank you the next question is from the 44:13 44 minutes, 13 seconds line of Dan Cha from a crate advisor please go ahead Yeah. Uh thanks for the opportunity sir. 44:21 44 minutes, 21 seconds And my question is on uh uh the uh guidance like there is a strong visibility from the bloom plus other 44:29 44 minutes, 29 seconds segments are also you know you know doing well. Uh so what is our internal guidance by when can we achieve 5,000 K of revenue? 44:39 44 minutes, 39 seconds That's a very uh long round question anyway. So I I can't talk about that right now. So when we're going to 44:46 44 minutes, 46 seconds achieve 5,000 crores but the way we are moving forward uh I think uh we are on 44:53 44 minutes, 53 seconds track with that number probably uh let's see I can't just say anything right now about that but one thing I can promise 45:01 45 minutes, 1 second you that we are on track with uh that by FI30 is it possible 45:08 45 minutes, 8 seconds hopefully yes let's see how it goes I can't commit right now on that but we have a clear road map to be where you want to be by FI. 45:19 45 minutes, 19 seconds Understood. And how much capex do you have to do you know to achieve that kind of revenues? Any incremental capex apart from this 250 K? 45:29 45 minutes, 29 seconds No, we will be having incremental capex uh year-on-year basis. Uh that's very clear in terms of additions of 45:36 45 minutes, 36 seconds capacities year-on-year basis based on clear visibility given by various customers of ours. And uh each year we'll evaluate that and we'll plan it 45:45 45 minutes, 45 seconds ahead of time. So that's an ongoing process the kind of growth that we are looking at right now. 45:51 45 minutes, 51 seconds But as per your estimates how much capex we have to do you know to achieve 5,000 crores of revenue internally is it like 45:58 45 minutes, 58 seconds 500 cr 600 cr how much is our internal estimates? 46:03 46 minutes, 3 seconds We can't exactly specify that right now but probably between 500 to 700 cr I guess and and we are also building the green 46:10 46 minutes, 10 seconds field capacity. So that would be enough you know to uh achieve this kind of growth. 46:18 46 minutes, 18 seconds Yeah, absolutely. I mean uh we are building the infrastructure for the future growth and also uh adding 46:25 46 minutes, 25 seconds equipments in a phased manner based on the requirement of the customers. Uh and uh that's been more than enough. 46:33 46 minutes, 33 seconds Understood. And when can we see you know the operating leverage play out because I think the product mix is also changing you know from clean fuel to other uh 46:42 46 minutes, 42 seconds segments maybe year down the line. So how how do you see the operating margins uh play out you know once we'll achieve the scale? 46:53 46 minutes, 53 seconds So the operating leverage will improve because of we'll have better operating leverage because of the kind of revenues or volumes that we're doing right now 47:01 47 minutes, 1 second and it's not only in one product but multiple products that we are working with the customers and uh we'll start seeing that from the current finance very soon. 47:11 47 minutes, 11 seconds Awesome. Okay, thank you. That's all from my side. 47:15 47 minutes, 15 seconds Thank you. The next question is from the line of Gorov Naguri from Evenduspa. Please go ahead. 47:23 47 minutes, 23 seconds Hi, thanks. Thanks for the opportunity. 47:25 47 minutes, 25 seconds Uh just in continuation to the question which was previously asked. Uh can you share more details on what kind of components that uh you are supplying to 47:34 47 minutes, 34 seconds these data center solution? Is it part of MEP or part of RAX or any any more details? and what is the value add uh in 47:43 47 minutes, 43 seconds those components by empire that's that's question one uh second um is on the 47:50 47 minutes, 50 seconds execution and the margin risk um and where I'm coming from is that obviously orders inflow is is obvious and so 47:58 47 minutes, 58 seconds looking hearing the commentary of your client it's it's it's given that u orders should come in but what we hear 48:05 48 minutes, 5 seconds is that your peer or or the competitor is also increasing capacity uh in their home market and uh you are 48:13 48 minutes, 13 seconds also is is expanding the capacity as well. So do you foresee uh margins kind of uh be at risk in the longer term or 48:21 48 minutes, 21 seconds in the near term because the ROMAT and and multiple um commodities have seen a sharp price hike it would be difficult 48:29 48 minutes, 29 seconds for you to pass on um these the these uh increase in the price to the client. So these are my two questions. 48:37 48 minutes, 37 seconds So for to answer the first question uh we are dealing with uh the various uh assemblies required to build a data s 48:45 48 minutes, 45 seconds center structure and the value addition is close to about 70%. Uh in this area 48:52 48 minutes, 52 seconds and it's pretty profitable and uh it's not uh it's very uh specialized job that we are doing and we are doing the first 49:00 49 minutes articles right now. We'll know more about it as when we finish the first article which is close to 35 course that itself is a big number and uh as far as 49:09 49 minutes, 9 seconds uh uh the capacities that you're looking at see we're not looking at competition see the most important thing for empire 49:18 49 minutes, 18 seconds is what we have done over the last 12 15 years and how we have uh partnered with our customers in uh ensuring that uh 49:28 49 minutes, 28 seconds being very innovative in our approach bringing autom ation into play doing various other innovative aspects with the customer. Uh there's enough on the 49:37 49 minutes, 37 seconds plate uh for us to work on and there is no uh the most important uh aspect is 49:45 49 minutes, 45 seconds that there is a pressure on deliverables more than anything else right now to ensure that we deliver everything what they need and we are focusing primarily on that. 49:55 49 minutes, 55 seconds Okay. Okay. No. I mean if you can just elaborate a little bit more on margins because in this quarter also uh we have 50:02 50 minutes, 2 seconds not seen much operating leverage benefit um uh uh in in in the gross margins and the beta margins and despite uh a good 50:10 50 minutes, 10 seconds run in this quarter uh and given that we have seen a sharp inflation across categories um do you do you foresee uh I 50:18 50 minutes, 18 seconds mean what gives you confidence that uh margins uh would see expansion on these orders inflow 50:26 50 minutes, 26 seconds See it's not only about one sector right if you look at the current financial year uh so we we were last year we're working on various uh aspects in 50:34 50 minutes, 34 seconds different sectors and first articles we're building uh the WIP for various nuclear programs and all that so you 50:40 50 minutes, 40 seconds will see uh the margins coming into play because of not only one sector but multiple sectors that we are dealing 50:48 50 minutes, 48 seconds with right and the kind of volumes that we are looking at this year like last year we had uh it's not about one 50:55 50 minutes, 55 seconds quarter right last if you look at last year we had certain impact because of geopolitical situation but we are beyond that right now because we evaluated 51:03 51 minutes, 3 seconds everything and we studied that and uh that's why we said you know we are in a much stronger position moving forward as 51:10 51 minutes, 10 seconds well so if you look at uh the last year we had a weak first half of uh weak 51:17 51 minutes, 17 seconds first half uh in revenues last year but this year as I said our first half itself is very strong and second half would be even much better than that. So 51:25 51 minutes, 25 seconds obviously the operating leverage will come into play big time uh quarteronquarter basis uh as we're 51:32 51 minutes, 32 seconds ramping up stepbystep quarteron quarter basis uh for the deliverables and that will help a lot in terms of improving 51:39 51 minutes, 39 seconds the margins in one given sector and all the other sector also the volumes are going up in absolute numbers. uh people 51:47 51 minutes, 47 seconds talk about percentages but I would always look at the numbers in how which we are growing in each of these sectors which is very promising and that's also 51:54 51 minutes, 54 seconds contributing a lot to uh coming uh with improved margins quarteronquarter basis and ending the year at about around 24% 52:02 52 minutes, 2 seconds margins for the year just to add MD's point see we we have 52:09 52 minutes, 9 seconds spent almost 28% on the fixed cost both salaries and other expenditure within increased revenue we will have a at 52:18 52 minutes, 18 seconds least 5% operating leverage we will we are estimating uh definitely there is no uh issue as far as the meeting the EITA 52:26 52 minutes, 26 seconds targets even in the conservative scenario also we have considered okay is it possible to quantify how much 52:36 52 minutes, 36 seconds of the new product development cost is expressed out in PNL in SI 286 52:43 52 minutes, 43 seconds there's a continuous process even Last year also we are working on first articles in aerospace and other things and this year we are completing the 52:52 52 minutes, 52 seconds mostly all the first articles of all the customers in aerospace. So we will have a volume production in the future with 53:00 53 minutes the same set of people and missionary we are going to do much more revenue than what was done in the last financial 53:07 53 minutes, 7 seconds year. So this first article new product development is a continuous process in the company. Every year we are incurring 53:14 53 minutes, 14 seconds that expenditure which is already factored in our actual margins and also whatever margins we have communicated to shareholders in the in this call. 53:25 53 minutes, 25 seconds All right. Okay. Okay. But is it possible to quantify in FI26 as a percentage of revenue how much FI FI 53:32 53 minutes, 32 seconds expense as revenue? Oh, it's not so much because if you look at our revenue mostly uh 90% of the revenue is only 53:40 53 minutes, 40 seconds from the existing products what we are doing only oil and gas already we have done the first article and the facility is coming up in September of this year 53:49 53 minutes, 49 seconds from uh so we are going to do that production around the next six months we are doing the volume production only because already we have done the first 53:56 53 minutes, 56 seconds article so other clean energy sectors we have already done only in the aerospace first articles are happening 54:03 54 minutes, 3 seconds And this year is almost is completing by September all the September or December maximum it is completing. So it is not 54:11 54 minutes, 11 seconds sizable material amount to quantify that's what I want to say. 54:16 54 minutes, 16 seconds Okay. Thank thanks thanks for the time and all the best for the future. 54:22 54 minutes, 22 seconds Thank you. The next question is from the line of Aijit Singh from systematrics. Please go ahead. 54:29 54 minutes, 29 seconds Thank you for the opportunity sir and uh congrats on a great first question on the nuclear business 54:36 54 minutes, 36 seconds are capabilities and capacities in the nuclear business are they funible across reactor technologies let's say PSWR fast 54:45 54 minutes, 45 seconds speeder so in case one picks up faster than the other are we placed to supply you know across these technologies and 54:53 54 minutes, 53 seconds how does the scope change if that happens you know all the assets are funible you 55:00 55 minutes know whether it is uh FDR or PHWR that doesn't really matter the technology is different but the uh machineries and all 55:08 55 minutes, 8 seconds are funible across uh both the reactors so that's not an issue at all and we have built our own machines uh uh 55:17 55 minutes, 17 seconds earlier for uh taking care of the SBR reactors and we continue to operate those machines very specialized machines 55:24 55 minutes, 24 seconds and they are funible as well across all sectors so it's not an issue at Right. And sir, uh you mentioned that 55:32 55 minutes, 32 seconds you're expecting an order inflow from uh another equipment uh you know reactor in FI27. So the content for that would be 55:41 55 minutes, 41 seconds similar to the one that we received in FI26 or uh there would be a change. 55:48 55 minutes, 48 seconds Oh can I repeat your question? Consider the order info expected in FI 27 from this year. The quantum of that would be similar to that one that we received in 55:57 55 minutes, 57 seconds FI26 of about 5 billion or no no we we can't we can't quantify that 56:05 56 minutes, 5 seconds we have refurbishment of reactors and the new reactors. So it depends on the timing of the tenders and when the department uh would release the orders. 56:13 56 minutes, 13 seconds So it'll be a major uh orders that will flow in but uh I can't assure the timing of that. Uh so as and when they're 56:22 56 minutes, 22 seconds coming yes the the quantum would be similar. 56:26 56 minutes, 26 seconds Right. So then secondly on the the refurbishment part of the nuclear business. So what is the kind of uh 56:34 56 minutes, 34 seconds nature of the order? So what is the scope of our business in the nuclear for refurbishment orders and uh how to look at it as from the you know perspective 56:43 56 minutes, 43 seconds of frequency let's say let's say how many orders do we expect for an in the next two to three years or 56:50 56 minutes, 50 seconds it depends on the refurbishment of yeah so basically depends on the refurbishment of the reactors when they 56:56 56 minutes, 56 seconds are due and uh we have been work we have already we got some orders of the refurbishment of various reactors overall there five reactors so we got 57:04 57 minutes, 4 seconds some orders on those refurbishment reactors. We're getting some more in this quarter. So basically this was the pool and channel assembly that we 57:12 57 minutes, 12 seconds looking at in the refurbishment area which we are which we have been doing for ages right now. So that's that's an ongoing process. So each time they 57:20 57 minutes, 20 seconds declare uh as and when they need to refurbish the reactor and uh such reactors is an opportunity for empire to 57:27 57 minutes, 27 seconds uh cater to the requirements of the NPCL to handle this reactors. 57:34 57 minutes, 34 seconds Okay sir. Thank you Lord. That's it for my Yes. Thank you. 57:40 57 minutes, 40 seconds Thank you. The next question is from the line of Aman from Assisted Investment Management. Please go ahead. 57:48 57 minutes, 48 seconds Uh good afternoon sir. I first question is on the nuclear side. So uh we are mostly doing products which are related 57:57 57 minutes, 57 seconds to say machining head and all those things. uh you had talked about we are also trying to enter Kalandria and all 58:04 58 minutes, 4 seconds those products. So can you give an update by when do we expect the approval and when we can start bidding for such products who are at risk market per reactor also increases? 58:16 58 minutes, 16 seconds No, technically we are already qualified for Kalandia and Nshield uh and uh like 58:22 58 minutes, 22 seconds for the May Basada uh Ashin projects uh they have intimated to us the tenders will come in this year for that and 58:30 58 minutes, 30 seconds which we are qualified for that. So we'll be able to participate and uh this for the first time we'll be doing it. We have the infrastructure and we are 58:37 58 minutes, 37 seconds qualified for that right now. So we'll be participating in that and we're expecting the orders in that area as well this year. 58:45 58 minutes, 45 seconds That's an increase in wallet share in what you can contribute to NPC. 58:51 58 minutes, 51 seconds Sure. That is helpful. And you talked about scaling from Q1 uh itself. Is it on track or there's some delay and only 58:58 58 minutes, 58 seconds Q2 Q3 we can see scaling of nuclear business? No nuclear business would scale. 59:06 59 minutes, 6 seconds Primarily the way we are looking at is by the time we get the raw materials in place and all that we're working on it. 59:11 59 minutes, 11 seconds We are we already have orders earlier orders where uh it's an advanced stage of execution. So you will really see the 59:18 59 minutes, 18 seconds scaling up going from Q2 onwards uh in a big way. 59:23 59 minutes, 23 seconds Sure sir. Uh my next question is on oil and gas side. You very nicely explained the chicken and egg situation where customers were looking for us to put the 59:31 59 minutes, 31 seconds plant and finally the plant is coming online now uh by September. So could you talk about what kind of peak sales we 59:39 59 minutes, 39 seconds can do from that plant and also is there a brown field capacity expansion that is possible because lot of these customers 59:46 59 minutes, 46 seconds want big plants and they have very big timelines next three five years visibility. So could you talk about little bit on that part? 59:56 59 minutes, 56 seconds See the plant the way we have uh built the infrastructure and the equipment in the missionary uh it's a multiffold 1:00:03 1 hour, 3 seconds plant in various requirements of number of other customers as well. So if you look at 3 to four years horizon we're 1:00:10 1 hour, 10 seconds looking at about the oil and gas plant which is getting commission in September can uh grow up to even 40 to 500 crores of revenue in that one plant itself. 1:00:23 1 hour, 23 seconds That is helpful on uh aerospace side you talk about significant order from actuator assembly which we are uh 1:00:30 1 hour, 30 seconds expecting from LCA mark1 a pages. So is it like 50 100 cr what is the sign is it 1:00:37 1 hour, 37 seconds cr I think it's about 13 to 150 crores uh and that we have done it we got 1:00:46 1 hour, 46 seconds qualified we have supplied them and we are doing uh that and uh we expecting that order we supposed to get it in last 1:00:53 1 hour, 53 seconds quarter itself but hopefully we're getting we should get that in this quarter and sorry for say x number of players 1:01:01 1 hour, 1 minute, 1 second only this week and expect to be repeated every year uh for at least 2 three years. 1:01:08 1 hour, 1 minute, 8 seconds We have to see that you know like basically it's a free issue material. 1:01:11 1 hour, 1 minute, 11 seconds What you're talking about here is uh the order what I'm talking about is uh the raw material is free issued uh free from 1:01:18 1 hour, 1 minute, 18 seconds the department. So just a value at what we're looking at and so let us get the first uh batch of orders and then we'll see how it goes. 1:01:28 1 hour, 1 minute, 28 seconds It also depends on the programs that they want to set up right. Yes, sure. That's it's for my side. 1:01:37 1 hour, 1 minute, 37 seconds Thank you. 1:01:40 1 hour, 1 minute, 40 seconds Thank you. Due to time considered, we take this as a last question. I now hand the conference over to the management for closing comments. 1:01:54 1 hour, 1 minute, 54 seconds So I'd like to thank uh first all the uh NPR team members for a phenomenal job 1:02:01 1 hour, 2 minutes, 1 second done last year but we're also focusing on the future years as well and uh the way things are going we are very 1:02:10 1 hour, 2 minutes, 10 seconds positive about what we how we are going to grow in the current year and uh maintain sustaining our margin and as 1:02:18 1 hour, 2 minutes, 18 seconds well as uh the implementation of various uh capacities expansions that we're looking at in the current year. A lot of 1:02:26 1 hour, 2 minutes, 26 seconds focus is being done in these areas as well and uh we are very confident of 1:02:33 1 hour, 2 minutes, 33 seconds moving ahead and surging ahead with the growth that we're looking at not only for this year but years to come. Uh we have a clear road map for the next at 1:02:42 1 hour, 2 minutes, 42 seconds least for the next five years. We have a very clear road map of what we need to do to build this company to a much greater level. That's for sure. And I 1:02:50 1 hour, 2 minutes, 50 seconds would also like to thank all our shareholders, investors for imposing faith in us over the years. And uh 1:02:58 1 hour, 2 minutes, 58 seconds moving forward as well, we would assure that we'll adhere to whatever we have mentioned in terms of our guidance and as well as the margin profile that we 1:03:07 1 hour, 3 minutes, 7 seconds have explained. Thank you so much all of you for saving your time to join us in this earning spot. Thank you so much. 1:03:17 1 hour, 3 minutes, 17 seconds Thank you on behalf of MUFG time in time. That concludes this conference. 1:03:23 1 hour, 3 minutes, 23 seconds Thank you for joining us. You may now disconnect your lines.