Pennar Industries Limited — Q3 FY26

Pennar Industries Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=XriUSvPYNoc Published: 2 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Penar Industries Q3 FI26 earnings conference call hosted by 0:08 8 seconds Philip Capital India Private Limited. As a reminder, all participant lines will be in the listenonly mode and there will 0:16 16 seconds be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please 0:24 24 seconds signal an operator by pressing star 10 on your Touchstone phone. Please note that this conference has been recorded. 0:32 32 seconds This conference call may contain forward-looking statements about the company which are based on the beliefs, opinions and expectations of the company 0:41 41 seconds as on date of this call. These statements are not guarantees of future performance and involve risks and uncertaintities that are difficult to 0:49 49 seconds predict. I now hand the conference over to Mr. Hershil Sha from Philip Capital India Private Limited. Thank you and to you sir. 1:00 1 minute Thank you Anushka. Good morning and very warm welcome to everyone. Thank you for being on the call of Penar Industries Limited. We are happy to have the 1:08 1 minute, 8 seconds management of Spennar Industries here today for the Q&A session with the investment community. The management is represented by Mr. Adita Ra vice chairman and managing director Mr. 1:19 1 minute, 19 seconds Shrian Bakar CFO Mr. manage vice president for planning and KM Sun vice president minister and media relations 1:28 1 minute, 28 seconds before we start with the Q&A session we will have opening comments from the management now I hand over the call to Mr. edit here for open water guys. Over to you, sir. 1:38 1 minute, 38 seconds Yeah, your voice is still muffled as I told you. You had to speak a little slower and louder. 1:46 1 minute, 46 seconds Should I should I go again? 1:48 1 minute, 48 seconds No, no, it's okay. But I'm just saying your voice is not very Yeah, not very audible. 1:56 1 minute, 56 seconds Okay. So, uh I'll get started. uh if my voice isn't clear or if uh it's inaudible or uh please do let us know. 2:05 2 minutes, 5 seconds All right. Uh good morning. Uh thank you for joining us for Fin Industries uh Q3 FI26 investor conference call. Uh happy to have you here with us to have this 2:13 2 minutes, 13 seconds opport this opportunity to share our recent performance and provide an update on the strategic direction driving our continued growth. We'll begin with an 2:20 2 minutes, 20 seconds overview of our Q3 results. uh we'll highlight key metrics including revenue pack working capital and our uh primary growth engines. Following this, Mr. 2:29 2 minutes, 29 seconds Shrian Bakar will provide a detailed financial review. We'll then move into a Q&A session to engage with your questions. We're pleased to report 2:36 2 minutes, 36 seconds strong performance this quarter. Revenue increased by 13.3% to 959.02 crores. PA grew by 10.14% to 33.55 crores, 2:45 2 minutes, 45 seconds reflecting sustained momentum across several of our core business segments. 2:49 2 minutes, 49 seconds The PAT was impacted by certain onetime costs during the quarter including provisions related to labor code implementation, wage agreements among 2:56 2 minutes, 56 seconds others. Excluding these non-recuring items, PAT growth would have been approximately 20%. Uh demonstrating the underlying uh uh strength of the 3:04 3 minutes, 4 seconds business. So we'll talk now about the key revenue growth drivers. Our PB division's capacity utilization has improved. Uh manpower challenges have 3:12 3 minutes, 12 seconds eased and inventory also has reduced by about 4,000 times. Our order backlog is strong at holding and we expect it to grow further over the next few quarters 3:20 3 minutes, 20 seconds driving revenue growth here. In ascent our US subsidiary in metal buildings we have delivered strong double digit growth in both revenue and 3:27 3 minutes, 27 seconds profitability. The auto backlog has increased to 52 million uh and we are in a good place for sustained double digit growth in revenue and PBT through the 3:36 3 minutes, 36 seconds remainder of the fiscal year. uh essence structural our acquisition also started booking orders and uh will be contri 3:44 3 minutes, 44 seconds contributing very meaningfully to our revenue in uh in Q4 and following quarters. Engineering services our structural engineering business 3:52 3 minutes, 52 seconds continues to perform very well. BIM growth was more modest but we have strengthened our sales and business development teams in the US to support future expansion. Overall again we 4:01 4 minutes, 1 second expect healthy double digit growth in revenue and PPT for their full year. 4:05 4 minutes, 5 seconds hydraulics or auto backlog is more than uh doubled. Uh the reduction in tariffs for the US will now help this business grow even quicker. We are expanding our 4:14 4 minutes, 14 seconds presence in domestic and European markets. And this segment while modest in revenue contribution remains on a very stable path and uh we don't expect uh we expect minimal impact for FI26. 4:25 4 minutes, 25 seconds The boilers division saw a very strong increase in our order backlog to 123 crores this quarter. We received a lot of strong export orders from Australia 4:34 4 minutes, 34 seconds and uh Sri Lanka, CYPM and grounds industry with strong execution in place. 4:38 4 minutes, 38 seconds We anticipate very robust revenue growth in Q4. This will become a major growth lever for us for for the next financial year. Our Q3 pack matches at 3.56%. 4:48 4 minutes, 48 seconds After excluding the one time uh after including the onetime events, we would have been at 4%. So our revenue and uh profit trajectory continues to shift 4:56 4 minutes, 56 seconds towards uh higher margin businesses and this positive trajectory will continue to grow our uh our TA at double digit 5:03 5 minutes, 3 seconds rates. Capital efficiency rose stands at 21.3% and return on equity is at 12.1%. 5:09 5 minutes, 9 seconds We're quite confident of achieving these returns as performance continues to scale through the year. working capital to the 36 days reflecting timing related 5:17 5 minutes, 17 seconds impacts from uh revenue perhaps not coming in in some of the segments with stronger Q4 projections especially in PB and other key segments. We expect good 5:26 5 minutes, 26 seconds improvement on this number in the next uh in this quarter and the next quarter Q4 and the next quarters. This concludes uh my performance overview for the third 5:33 5 minutes, 33 seconds quarter FI26. I will now hand over to our CFO Mr. Shika who will walk you through the detailed financials. Thank you again for your interest and support. 5:43 5 minutes, 43 seconds Thank you Ada. A very warm welcome to all our shareholders and investors joining the Q3 FI26 earnings fund. Let me take you through the key financial 5:51 5 minutes, 51 seconds highlights and I will go slowly so that the numbers are clear. Key matrices total revenue has increased from 943 5:58 5 minutes, 58 seconds crores to 800 from 839.72 crores and increase of 103.34 crores. Overall 12.31% increase in the revenue. 6:07 6 minutes, 7 seconds Advertise improved from 88.3 crores to 98.54 crores. a growth of 7.2%. 6:13 6 minutes, 13 seconds Pat is increased by 10.14% from 30.46 crores to 33.55 crores. This PAT growth 6:20 6 minutes, 20 seconds reflects the impact of certain onetime employee related cost. Excluding this, the underlying pack growth would have been substantially higher. 6:29 6 minutes, 29 seconds Detailed commentary on the financial results uh revenue from our operations the consolidated revenue as I said it is 6:35 6 minutes, 35 seconds increased by 103.34 criterally driven by two reasons. one increase in our standalone and in our subsidiary 6:43 6 minutes, 43 seconds businesses. So 61.47 crores has increased from our standalone business and 41.87 crores in increase from our subsidiaries. 6:52 6 minutes, 52 seconds Uh within these segments the diversified engineering revenue has increased from 415.6 crores to 520.31 crores a growth of 21 25.19%. 7:03 7 minutes, 3 seconds Primarily driven by our strong performance in the steel BU sector. 7:07 7 minutes, 7 seconds Custom designing solutions uh revenue remained stable at 441 crores to 440 crores at a consolidated level. Uh the 7:15 7 minutes, 15 seconds growth of 42 crores is in the US business given by the telco acquisition. 7:19 7 minutes, 19 seconds This was offset by lower uh PEBB sales in India due to the challenges that we have and we are confident that this will 7:26 7 minutes, 26 seconds improve in the coming quarters. The order book stands at 810 crores for the PEBB India. uh PB US the combined asset 7:34 7 minutes, 34 seconds buildings and asset structural order book is now at 60.6 million. 7:40 7 minutes, 40 seconds Uh now coming to other income the other income is increased by 9.23 crores. Uh predominantly uh the factors includes 7:47 7 minutes, 47 seconds foreign exchange and translation gains income from mutual funds and deposits and collection of old receivables right back of creators plus the rental income. 7:56 7 minutes, 56 seconds To give you a detailed explanation, 2.71 uh crores comes from forex transaction and translation gains. 3.72 crores comes 8:04 8 minutes, 4 seconds from interest uh income from mutual funds and deposits. 8.4 crores is from collection of old receivables and right back of creditors. 8:14 8 minutes, 14 seconds Uh moving on the employee benefit expenses have increased by 17.31 cr which includes 3.6 scores uh due to 8:24 8 minutes, 24 seconds one-time cost which are on account of labor code compliances order from Chennai High Court on union employee settlement and the wage agreement 8:31 8 minutes, 31 seconds revision that we had uh the balance 12.16 was an incremental cost in substries due to our telco 8:39 8 minutes, 39 seconds acquisition and uh the normal increase uh due to revenue explaining on the finance cost finance 8:46 8 minutes, 46 seconds cost is increased by 2.85 85 cr which is in line with the expectations. This increase is attributable predominantly from the acquisition of the assets from 8:54 8 minutes, 54 seconds telco enterprise higher working capital utilization in line with the revenue growth. Finance first stands at 3.56% of 9:01 9 minutes, 1 second our uh net revenue which is better than our guidance of 4%. Our guidance break even uh breakup still remains the same 9:10 9 minutes, 10 seconds 1% on long-term loans and 3% on our working capital. Uh we remain within the limits on the long-term loans. working capital is high and we are hard at work 9:19 9 minutes, 19 seconds to reduce uh the quarter and we plan to reduce this by using our uh inventory terms and accelerating the sales 9:28 9 minutes, 28 seconds depreciation or mortization is increased by 4.25 25 cr at a consolidated levels. 9:32 9 minutes, 32 seconds 1.33 comes from sand which is on account of priority capex and other repairs and maintenance capitalization that we had 9:39 9 minutes, 39 seconds and 2.92 crores comes from subsidiary on account of telco acquisition and robotic machines that we have installed at our US operations. 9:48 9 minutes, 48 seconds Moving on to other expenses other expenses increased by 39.79 crores comprising 26 crores from standone and 14 cr from subsidy. On standalone the 9:57 9 minutes, 57 seconds job work and the manpower costs has increased by 19 cr which are aligned with our higher order executions and increasing the manpower rates for our 10:05 10 minutes, 5 seconds higher sales. Other cost are broadly in line with the revenue growth. We expect manpower and subcontract costs uh to stay at this level while we aim to 10:13 10 minutes, 13 seconds moderate the expenses to maintain the overall fixed cost discipline in the coming quarters. Subscribe level increase uh reflect the higher turnover 10:21 10 minutes, 21 seconds and associated job work and operational costs which we expect uh to stabilize in the coming quarter. Tax expense has been 10:29 10 minutes, 29 seconds lowered due to the credit that we have uh received relating to previous assessment years. A provision of 1.4 cr was given based on the assessment order. 10:37 10 minutes, 37 seconds We continue to guide to a consolidated tax rate of approximately 20 25.5%. 10:42 10 minutes, 42 seconds Overall summary uh revenue growth has been strong this quarter uh predominantly under diversified engineering custom design building 10:50 10 minutes, 50 seconds solutions in the US and overall operations both in India. The revenue expansion has translated into an improvement in our profit for the quarter. 10:59 10 minutes, 59 seconds With this I will hand over the call back to the moderator uh for the investor community questions. 11:07 11 minutes, 7 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 11:15 11 minutes, 15 seconds star in one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are 11:24 11 minutes, 24 seconds requested to use handsets while asking the question. Ladies and gentlemen, we will wait for a moment while the question cube assembles. 11:36 11 minutes, 36 seconds We take the first question from the line of Anik Nikum from ABN Capital. Please proceed. 11:43 11 minutes, 43 seconds Hello. Am I audible? Yes. Go ahead please. 11:49 11 minutes, 49 seconds Yes. Hi sir. Thanks for the uh sir. My first question is um we seem to have a strong growth uh that we have shown in 11:58 11 minutes, 58 seconds diversified engineering. So can you tell us a little bit about what has worked for us? What uh what business segments have worked? 12:07 12 minutes, 7 seconds I'm sorry you're saying diversified engineering. What is the what are the Yeah, what has worked because it seems like uh just a little bit all of a 12:14 12 minutes, 14 seconds sudden we are growing at uh you know 25% broadly. 12:20 12 minutes, 20 seconds Excuse me. Your voice is not very audible. Can you speak a little slower? Yes. Am I audible now? 12:28 12 minutes, 28 seconds Yes. Speak a little slower please so that we can understand. 12:31 12 minutes, 31 seconds Yes, sure. Sir, I was saying that uh can you comment a little bit about what segments in the diversified engineering 12:39 12 minutes, 39 seconds have worked for us given the strong growth we have shown in this quarter? 12:45 12 minutes, 45 seconds Okay. Uh I can tell you what which growth vectors for us are growing uh strongly. I mean the the attribution of it to direct diversified engineering 12:54 12 minutes, 54 seconds versus uh PB versus others I think uh I'll request Rhan to answer but uh for the third quarter question we had uh 13:03 13 minutes, 3 seconds pretty strong growth in our uh core business vertical which is uh revenue in uh uh in boilers in engineering services 13:12 13 minutes, 12 seconds uh in cross equipment grew uh in our PE US business also there was a substantial amount of growth uh India too as you 13:20 13 minutes, 20 seconds would call we had some issues but those issues are now being addressed. So we are at a good place to deliver growth on all five key key verticals right now 13:27 13 minutes, 27 seconds which includes PEBB uh India we should see very strong growth in this in the next few quarters on the back of us having resolved uh the labor issues that 13:35 13 minutes, 35 seconds we had and also on the back stronger auto backlogs. The acquisition of telco plus our US auto backlog also being strong will drive that business quite 13:44 13 minutes, 44 seconds strongly. uh ascent has uh uh also done quite well last quarter. Engineering services or structural engineering is 13:51 13 minutes, 51 seconds doing extremely well. We are uh in some sense capacity locked again but we are quickly expanded capacity and this quarter we'll see very strong growth. 13:59 13 minutes, 59 seconds Hydraulics because of the removal of duty from 50% to 18%. Uh we already had 14:06 14 minutes, 6 seconds some initiatives underway to scale those uh scale that business vertical in the absence of the US market. But now with the US market coming back, I think we 14:14 14 minutes, 14 seconds are uh we're quite uh we're quite confident that several of our customers are going to restart. In fact, this morning itself, I had a very encouraging 14:23 14 minutes, 23 seconds conversation with one of our primary customers in the US and uh we're quite confident again of that business scaling well. Spoilers as I had mentioned the 14:30 14 minutes, 30 seconds order backlog now is at 123 crores and double digit from a quarter quarter bas double digit growth is what we expect. 14:37 14 minutes, 37 seconds So all of that will drive our uh our growth uh over the next few quarters. 14:42 14 minutes, 42 seconds Yeah to answer your specific questions on the uh being increasing the diversified engineering business uh it come it comes from three angles. One is 14:51 14 minutes, 51 seconds the steel business uh boiler and BW. The combination of steel business boiler and BW has given us the increased growth. 15:03 15 minutes, 3 seconds Okay sir. Uh appreciate that. I think my second question sir is on the PEBB business segment or the you know as you 15:10 15 minutes, 10 seconds report it in segment reporting the custom design building solutions and auxiliary segment uh we've reported a 15:17 15 minutes, 17 seconds flat number so can you tell us what proportion of the business was from the acquisition because I guess that is not 15:24 15 minutes, 24 seconds there last year and uh why the business was flat given that we already had a strong order book and we had new capacity and so on. 15:34 15 minutes, 34 seconds So uh the acquisition uh didn't really come in in the last quarter uh though we had completed it in uh late September 15:41 15 minutes, 41 seconds early October. Putting our new systems in place uh getting our order backlog back up, transferring order backlogs, all of that took a little bit longer 15:49 15 minutes, 49 seconds than we thought since this is an asset purchase and not a company purchase. So uh but however this quarter it is extremely strong. Our order backlogs are 15:57 15 minutes, 57 seconds higher than uh than they've been. And from a revenue point of view also the rate we're at right now from a production output point of view that 16:05 16 minutes, 5 seconds we're at right now for our acquisition it's higher than it's ever been even prior to the acquisition for them. So very quickly growth has come in very 16:12 16 minutes, 12 seconds quickly we have been able to scale uh a very short one-time uh issue which resulted in the PB business not being a 16:21 16 minutes, 21 seconds major growth factor but we feel that reverses quite strongly in this in this quarter. Everything is looking really good for as far as we can tell for our 16:29 16 minutes, 29 seconds EV business. India order backlogs are up. The labor issues have been resolved in the US. Acquisition is now starting to contribute quite strongly and our 16:36 16 minutes, 36 seconds order backlogs are also up for the regular metal buildings business in the US. So combine all of that and we are we are very very confident that this is 16:44 16 minutes, 44 seconds going to scale. So no that narrative should give you an idea about what we're expecting this quarter and what we saw for the last quarter. 16:52 16 minutes, 52 seconds Got it sir. Sir, typically we typically give the order book in the US and India but I don't see it in this presentation. 16:59 16 minutes, 59 seconds Would you be uh would you be willing to share those numbers sir in the call? 17:04 17 minutes, 4 seconds Sure. Uh the US let me break the US up into two pieces. Uh the US order backlog for buildings is 52 million. Uh the US 17:13 17 minutes, 13 seconds order backlog for telco is about 10 million. The US uh the India order backlog is about 820 crores. 17:23 17 minutes, 23 seconds Okay sir, thank you so much. Wish you all the best. Thank you. 17:31 17 minutes, 31 seconds Before we proceed with the next participant, I would request all the participants to talk slowly while asking questions as 17:40 17 minutes, 40 seconds the management is not able to hear clearly. We take the next question from the line of Deepak Podar from Sapphire Capital. 17:51 17 minutes, 51 seconds Yeah. Sir uh please go ahead to take question sir. 17:55 17 minutes, 55 seconds Yeah uh thank you very much sir for this uh opportunity. So I just wanted to can you quantify uh what's the oneoff uh I 18:03 18 minutes, 3 seconds mean you mentioned your adjusted part is 4% rate. Uh so so can you just quantify the oneoff in terms of labor code or any other oneoff? 18:12 18 minutes, 12 seconds I guess the one off one one time cost. 18:16 18 minutes, 16 seconds Oh okay. Uh okay do you want to take this? Yeah, the onetime cost on account of three things uh which which comes in salaries and wages. One is on account of labor code uh compliance implementation. 18:28 18 minutes, 28 seconds Second, we have received a Chennai high court order for the union employees settlement which for which we need to uh 18:35 18 minutes, 35 seconds have made a provision. Third, there are wage agreements that have been finalized with the workers. So all uh inclusive 18:43 18 minutes, 43 seconds close to around 4 crores is the impact that we have onetime cost. 18:48 18 minutes, 48 seconds 4 crores is a total cost. So so this uh but this will not reoccur. I mean uh these all are oneoff, right? 18:56 18 minutes, 56 seconds Correct. All of these are one time recurring uh recurring costs. 19:00 19 minutes Okay. Understood. And one time cost map only. 19:04 19 minutes, 4 seconds Yeah. 4 crores around. And and in terms of the telco acquisition, I think the contribution has started coming from this third quarter, right? 19:13 19 minutes, 13 seconds Not really sir. Uh fourth quarter, we couldn't really get anything in the third quarter because though we completed the acquisition, putting our systems in place and asset purchase, the 19:21 19 minutes, 21 seconds order backlog transfer took a little bit. I think you saw a little bit come in in December but uh nothing that 19:28 19 minutes, 28 seconds material but this quarter uh I think uh I'm I'm quite sure we will be able to give you some very good news on that uh 19:35 19 minutes, 35 seconds for Q4 from Tesco from uh E India and and uh ascent understood and and that's about what 100 19:42 19 minutes, 42 seconds crores peranom revenue right that that's the business that it will be higher than that sir it would be substantially higher than 19:50 19 minutes, 50 seconds that okay okay would you be able to quant identify I mean what contribution annually that company can bring I we can't give revenue guidance but we 19:59 19 minutes, 59 seconds can definitely tell you that uh uh from a order booking point of view we are doing about $2 million about $1820 crores per month so typically over the 20:08 20 minutes, 8 seconds medium-term short-term to medium-term your revenue and your order booking tend to converge so we're not giving you guidance for the year but it will 20:15 20 minutes, 15 seconds definitely be substantially over 100 crores understood and in terms of issue you mentioned on PB India right so Is the 20:23 20 minutes, 23 seconds labor issue still still kind of haunting us? I I mean what's the issue we are talking about here? 20:30 20 minutes, 30 seconds No, we've resolved it. That was the issue we had for the last couple of quarters. We have now resolved it. Uh we've uh undertaken many initiatives including building our own labor 20:39 20 minutes, 39 seconds quarters uh including uh increasing our contract manpower including our uh increasing our uh uh our scale manpower 20:46 20 minutes, 46 seconds which is sourced from other uh other vertical as well. So now the issue is resolved. I don't we're not labor bottleneck anymore. So the combination of a large order backlog uh will see 20:55 20 minutes, 55 seconds this revenue get back to uh to full growth. So yeah, so that issue is solved but you'll see it in this quarter. 21:01 21 minutes, 1 second Okay. So, so what was the issue which led to uh third quarter lower growth in PEBB? India right 21:08 21 minutes, 8 seconds in EB overall as I mentioned there was a a dip and the rational reasons for that was what I mentioned telco did not uh come in the way it wanted to the US also 21:17 21 minutes, 17 seconds I think ascend buildings also we we didn't have a lower quarter but we had a moderate growth quarter and e India because of those reasons we it as I 21:26 21 minutes, 26 seconds mentioned in the last time we had spoken which was mid-occtober we were well on our way to a solution but by that time half the quarter was done so from a run 21:34 21 minutes, 34 seconds rate point of view right know what we are seeing every month what we're seeing happen uh this issue is behind us okay okay understood and um I I think 21:43 21 minutes, 43 seconds you mentioned something on consolidated pat of 25% I'm I was not able to uh understand I mean what we are trying to say here I mean consolidated pad of 25% 21:51 21 minutes, 51 seconds something I think the narrative we may given that matches those numbers is if the one-time labor costs are removed then our pad 21:59 21 minutes, 59 seconds growth and our cash pad growth are uh around those numbers I think but what what's relevant I think is what we have to declare I think there uh we can uh 22:08 22 minutes, 8 seconds they may be onetime items but they are cost items which the company had so uh uh we just wanted to give some narrative 22:15 22 minutes, 15 seconds and clarity on why our revenue growth is 13 14% but our profit growth is only 10%. that that was the reason I would have mentioned. 22:23 22 minutes, 23 seconds Okay, understood. And then just final thing from my side I think in the last call we mentioned a flow excuse me flow of 20% pad growth that we are looking y 22:32 22 minutes, 32 seconds right so so that that we continue to hold I mean for this year and coming years that remains that definitely remains this is a surprise one time thing quite 22:41 22 minutes, 41 seconds frankly even the new labor law regulations we we should have perhaps anticipated that coming but we have to follow accounting law and uh that is a 22:49 22 minutes, 49 seconds reason why we couldn't compensate for that quickly enough but with the revenue growth grow plans that we have uh we will absolutely maintain our uh uh 22:57 22 minutes, 57 seconds double-digit profit growth uh commitments and if you look at what's been happening over the last few years also that will that's absolutely what we intend to achieve. 23:06 23 minutes, 6 seconds Okay. Okay. Okay. Um yeah yeah I got it. 23:09 23 minutes, 9 seconds That would be it from my side. Would like to wish you all the best. Thank you so much. Thank you so much. 23:16 23 minutes, 16 seconds Thank you. 23:18 23 minutes, 18 seconds We take the next question from the line of Nitin Gene from Fair Value Equity Advisor. Please proceed. 23:25 23 minutes, 25 seconds Yeah, thank you for the opportunity. So, uh can you please uh clarify what was the exact impact due to the change in 23:33 23 minutes, 33 seconds labor codes only like that part of the one time impact? 23:39 23 minutes, 39 seconds Uh we don't have that exact precise breakup as of right now but we will we will make sure we give that to you. 23:44 23 minutes, 44 seconds Overall uh the combination of three issues which was uh the court case which was from uh I believe 10 12 years ago that uh went against us plus the labor 23:53 23 minutes, 53 seconds court plus uh wage divisions together we have that the exact uh because of the labor code we will we'll get that to you but it was a substantial number. 24:05 24 minutes, 5 seconds Okay. Uh so uh my next question is uh in Q2 management uh indicated that the unexecuted order book was around uh 880 24:14 24 minutes, 14 seconds cr in the PB business and this quarter we have one orders worth 780 cr. So uh 24:21 24 minutes, 21 seconds even if I consider the PB revenue for Q3 and the unexecuted order book as of December which is uh I guess you 24:30 24 minutes, 30 seconds mentioned around 820 cr so it is not uh reconciling exactly. Can you please help me with that? Sure. 24:37 24 minutes, 37 seconds Yeah. So the reason that number wouldn't match up is what we have given we've given you a few numbers for order backlog. The 780 cr number is order 24:45 24 minutes, 45 seconds bookings for that quarter. It doesn't represent uh the situation as it is right now. As it stands right now we 24:53 24 minutes, 53 seconds well over 800 rows in the PB India order backlog as well. And from a revenue recognition point of view there is a lot 24:59 24 minutes, 59 seconds of uh uh what we follow effectively is when the risk has passed. So we have shipped its debits are our order backlog 25:07 25 minutes, 7 seconds but it won't show up in revenue because our auditors will not allow us to to take that revenue in until we have uh received uh some measure of confirmation 25:16 25 minutes, 16 seconds from our customers about uh goods that are shipped. So those uh uh differences will give you a thing where you if you 25:23 25 minutes, 23 seconds look at the number that was quoted to the last time we spoke in uh November that would have been the order backlog at that point of time. uh the order 25:30 25 minutes, 30 seconds booking number that we have given is 780 crores is a lump sum number for that quarter. The situation as it stands right now is one where the order backlog 25:38 25 minutes, 38 seconds is very strong at well over 800 crores and and that's only PV India I'm talking about. regard the entire PV space and it's much larger. Uh moving to all of 25:46 25 minutes, 46 seconds those reasons, you will not see those numbers line up where order booking, opening order book uh minus revenue plus new order booking is equal to current order backlog. That equation will not 25:54 25 minutes, 54 seconds work because of the reason I just mentioned, right? Uh no, I'm not saying as of today. Uh obviously there might be more 26:02 26 minutes, 2 seconds order as of today. Uh but I was hoping to reconcile as of the end of quarter three. 26:09 26 minutes, 9 seconds So uh yeah. Yeah. Yeah, see you got the order book that we've given as part of our press media release that includes 26:16 26 minutes, 16 seconds multiple businesses. So uh that includes India business hy diversified engineering business as well as the boiler and the hydraulic businesses as 26:25 26 minutes, 25 seconds well. So that 780 cr is for the entire company uh the order book while the PB order 810 crores specifically is for PB 26:33 26 minutes, 33 seconds India and uh 52 + 10 crores uh what we have is for the US. So yeah in in 26:40 26 minutes, 40 seconds million 52 million and uh the 10 million is for the US business. So the order books are different and this quarter 26:47 26 minutes, 47 seconds orders that we have received is 780 crores. Hope I was able to clarify. 26:53 26 minutes, 53 seconds Right. Right. So just a follow up to that uh out of the 780 cr you mentioned that this is for uh different verticals put together. What would what portion would be attributable to PE? 27:05 27 minutes, 5 seconds That exact number we do not have right now. we'll get that uh we'll get that number across we can give you the exact number for PB 27:12 27 minutes, 12 seconds India as well as the PB US and just so uh you know to to make sure that this is something has been clearly understood uh 27:20 27 minutes, 20 seconds typically when we give you order backlog numbers they're as there are right now so in the month of January for example we had well over 200 rows in order 27:27 27 minutes, 27 seconds booking in the EB itself in EB India itself so u I think the best way to understand this especially from a revenue foreseeability revenue 27:36 27 minutes, 36 seconds projection standpoint is what our order backlog is at this point of time. Uh the 780 crores is just the major order 27:43 27 minutes, 43 seconds booking that we have that we are uh we have to comply with uh with reporting. 27:48 27 minutes, 48 seconds That's why we go ahead and do that. But it is not by any means a holistic revenue projection uh indication for what we're going to be doing. It's a 27:57 27 minutes, 57 seconds blend and it is not intended to be the way we project revenue. It's it only covers significant major orders. So, and 28:04 28 minutes, 4 seconds as I mentioned, there's a lot more of that that came in in January. So, I think we'd be best served if the if the point of this is to look at revenue for 28:11 28 minutes, 11 seconds stability, what's going to happen in the PB business in India, in the US, the best way for us to accomplish that is to look at current auto backlogs. Uh, but 28:19 28 minutes, 19 seconds yeah, that's that's my two cents. 28:24 28 minutes, 24 seconds Right. Right. Uh, maybe maybe I can take this offline. Uh, thank you so much. Absolutely. Thank you so much. 28:33 28 minutes, 33 seconds Thank you. 28:36 28 minutes, 36 seconds Before we proceed with the next question, participants, please limit your questions to two per participants as there are several participants 28:44 28 minutes, 44 seconds waiting for their turn. We take the next question from the line of Shubankar Gupta from Equitry Capital. Please proceed. 28:53 28 minutes, 53 seconds So, hi team. Uh just one question from my side which I wanted to deep dive into. So you said we said that bad growth is 10% from 30 to 33 roughly 29:02 29 minutes, 2 seconds right but if we exclude the other income it is roughly landing at 17.5 and 23.7 29:08 29 minutes, 8 seconds actually roughly down 26%. And even uh if we let's say include the onetime 29:15 29 minutes, 15 seconds expense the uh in the PAT will be at around 21.5 which will still be at around 10% lower than on a buy basis. So 29:24 29 minutes, 24 seconds just wanted to understand what has led to this degrowth in PAT. 29:30 29 minutes, 30 seconds Uh if I can explain the PAT through early other income is part of our regular income only which is basically 29:37 29 minutes, 37 seconds yeah uh the income from deposits or foreign exchange translation reserve. It's not it's not operating income right like we 29:46 29 minutes, 46 seconds I'm talking about operating income basis we're down 10% by um see out of that close to around as 29:53 29 minutes, 53 seconds I've explained uh in my conversations the other income includes uh 372 crores uh approximately on foreign 30:01 30 minutes, 1 second exchange translation gains and other things that's part of the operating income but the rest of the things which is like uh the mutual funds and other 30:09 30 minutes, 9 seconds things they are they are not to to explain that a little that the I mean the assumption for us we the 30:18 30 minutes, 18 seconds model we follow is contribution operating margin targeting and when we have these things where there's a gap between uh whether it's forex gains or 30:26 30 minutes, 26 seconds other gains we do take that into account when we're mapping out what we have want our operating contributions to be so to 30:33 30 minutes, 33 seconds Shikan's point uh while I understand your question and what you're what you're trying to say uh we would take those things keep those in our operating 30:41 30 minutes, 41 seconds cash flow because We target our overall an overall operating margin is what we including these items is what we target. 30:48 30 minutes, 48 seconds Okay. Let's consider that even foreign foreign exchange is a part of let's say income right now that would be around 4 crores roughly our pad growth will then 30:58 30 minutes, 58 seconds be roughly 3 4%. Right? If you include that that part of the other income so even then it is like grown very very 31:05 31 minutes, 5 seconds less like compared to what we were targeting uh you know few quarters back. 31:10 31 minutes, 10 seconds So I just want to understand like like broadly in your view what has led to this underperformance and then how do we foresee it for FI27? 31:21 31 minutes, 21 seconds Well we don't necessarily see it for the because of the reason that I mentioned we don't necessarily see it as underperformance as I mentioned there's a certain profit number that we 31:28 31 minutes, 28 seconds operating margin that we target and we have multiple levers in order to achieve that. So uh the output that you see is 31:36 31 minutes, 36 seconds effectively because of these onetime costs. If those onetime costs are put back in then we do see a number which is completely in line with our long-term 31:44 31 minutes, 44 seconds stated objective uh which is to get doubledigit uh profit growth uh north of 20%. And uh that is what we see. Uh I do 31:54 31 minutes, 54 seconds get your narrative that look if you were to exclude the other income and other items. But these are very much in line with our overall uh with our stated 32:02 32 minutes, 2 seconds objectives of uh we also I do want to also state there's a lot of provisionings that we make. We're very conservative in our accounting. I mean we follow accounting law of course but 32:10 32 minutes, 10 seconds uh there's for example a lot of provisions that we made that we sure will come in for us as well. So uh what we're trying to give you is what the 32:18 32 minutes, 18 seconds output is based on our operating margin controls but uh if you are asking us whether this is something that is 32:26 32 minutes, 26 seconds sustainable that can grow 100%. So we are quite confident of achieving and growing uh our revenue and profit growth 32:33 32 minutes, 33 seconds targets and we are quite confident of uh of of committing to you as we have before that we we expect our profit 32:41 32 minutes, 41 seconds growth for the year for for the following quarters for to be double digit and north of 20%. So yeah I I 32:49 32 minutes, 49 seconds that's that's the best way I can ask you a question. 32:52 32 minutes, 52 seconds Okay fair enough. And on the only debt number sees certain rise in that. So Shagan if you can probably help me with like how is the debt like what is the 33:00 33 minutes debt number currently and like at what interest have we like are we currently pay paying for that? 33:08 33 minutes, 8 seconds Uh specifically in terms of total overall borrowing cost has been uh increased uh in line with the increase in the revenue as I as I uh narrated in 33:18 33 minutes, 18 seconds my uh discussion and uh the second the increase on account of long-term is on account of the acquisition in telco. So 33:25 33 minutes, 25 seconds overall 3.56% of the net sales is what our borrowing cost is. 33:32 33 minutes, 32 seconds Okay. So to understand this clearly you're saying that uh 13% revenue growth y so even that has been the increase in the total borrowing. Is that is that what you're saying? 33:41 33 minutes, 41 seconds Yes. 33:41 33 minutes, 41 seconds In terms of absolute number yes in terms of percentage there is a decline by 0.04 basis. 33:48 33 minutes, 48 seconds Okay. Got it. Okay. That's helpful. 33:50 33 minutes, 50 seconds Thank you. And at what cost is this like the whole uh total borrowing at weighted average cost a blend of 9 and a half%. 34:01 34 minutes, 1 second Okay. No, that's that's helpful. All right. Thank you. Yeah. Thank you. 34:09 34 minutes, 9 seconds We take the next question from the line of Pin Krishna from Aendas. Please proceed. Sir, am I audible? 34:18 34 minutes, 18 seconds Yes. 34:20 34 minutes, 20 seconds Can you give us uh two to three year guidance in terms of sales and PAT because you've been saying 20% you can 34:27 34 minutes, 27 seconds be maintained on if you can little bit elaborate on the drivers of sales growth and uh and my second question is regarding PEBB dynamics in India see how 34:36 34 minutes, 36 seconds how is the competition shaping up and how do you see we be doing better in PEBB going forward. 34:45 34 minutes, 45 seconds So road drivers as I said our three road growth drivers that we have mentioned which includes our boilers and process equipment hydraulics pre-engineered buildings India pre-ener buildings US uh 34:54 34 minutes, 54 seconds and engineering services are all firing and we expect growth in each uh and every one of those uh of those business units uh in revenue and profitability. 35:03 35 minutes, 3 seconds So that's our core strategy that the addressable market for these is quite high. So in this quarter which is Q4 for the financial year and for the remaining 35:11 35 minutes, 11 seconds quarters you will see growth in all of those sectors. uh this year we had a substantial issue with BB India but 35:18 35 minutes, 18 seconds that's in the rearview mirror we have solved it uh last quarter towards the end itself it was solved and uh we are quite confident that we bring in uh we 35:26 35 minutes, 26 seconds hit our numbers uh so when will we hit our 5% PA pat margin that we have been getting sir and what would be long run pat margin that we can settle settle at 35:35 35 minutes, 35 seconds once we re like all the legacy business is gone and then you reach scale in your most of your businesses because you've been telling that you want to have a 10% 35:43 35 minutes, 43 seconds share in this steel product businesses. So when will we what will be our when will we reach 5% and what will be our once we 35:50 35 minutes, 50 seconds reach our desired market shares in each of our segments what will be our flat margins you you will be at we right now at 4% uh 36:00 36 minutes you will see consistent quarter quarter improvements as to when we'll reach five and I think the better way for me to answer that uh so that this doesn't 36:07 36 minutes, 7 seconds become some form of guidance is for me to say that a long-term sustainable pack margin is a 7% is at 7% levels and we 36:14 36 minutes, 14 seconds are quite confident we'll achieve that in the within the next two to three years and that did not happen at one time it will happen quarter on quarter you will see 36:21 36 minutes, 21 seconds improvements uh I mean 3 years ago our pat margins were 2% change so that uh consistent with what we have done over 36:29 36 minutes, 29 seconds the last two years we'll continue doing that and that will ensure that uh uh that we get sales and sales growth of 15% to 20% we 36:36 36 minutes, 36 seconds can take I'm not asking for guidance but given the drivers and multi- multi-product and both geographies of US and India so we can assume a 15% sales 36:45 36 minutes, 45 seconds growth at least with 7% in 3 years, 3 to four years. 36:50 36 minutes, 50 seconds Uh I I I will say double digit sales group 15 uh we can definitely say is one of the targets we have in mind but 36:58 36 minutes, 58 seconds double digit sales group will come into and then pat of 7% over to three year or four year that is what we've added to in a 37:06 37 minutes, 6 seconds previous call. Have you raised your how long are we like so have we raised our market shares of 10% in those 37:15 37 minutes, 15 seconds products sir that you were mentioning that we want to take a small market share in all those products boilers and all these things we have achieved we 37:24 37 minutes, 24 seconds have not achieved 10% market share in any of our business uh revenue streams. 37:28 37 minutes, 28 seconds So that's a good and bad thing. It's a bad thing in the sense that we are not the largest player in any of those fields. It's a good thing in terms of we 37:36 37 minutes, 36 seconds have tremendous amount of headroom to grow. So that is uh uh and we like it that way. I think once we reach 10% we'd 37:43 37 minutes, 43 seconds be happy. But in none of those business have we reached 10% as yet and there are market share capture and there's no challenges to reach you. 37:50 37 minutes, 50 seconds It's just a function of time and systems and uh people. 37:55 37 minutes, 55 seconds I don't think a model calls for us to reach. I mean uh if you look at let's look at the PEBB space the largest player in the PB space is 20% market 38:02 38 minutes, 2 seconds share right and uh they that's the business model and growth for them from a revenue standpoint would be harder 38:09 38 minutes, 9 seconds going forward right because they already added 20% and unless the business the market itself is growing at double high double digit rates sustainably over 38:17 38 minutes, 17 seconds years they would be difficult for them to grow our model is a little more nuanced we pick five large addressable markets and we pick those our market 38:26 38 minutes, 26 seconds share is low So sustained growth on that is what we're trying to achieve. So there's two things we try to do to ensure a revenue grows. One yes a mo 38:33 38 minutes, 33 seconds market share grows moderately but most importantly the addressable market itself also should grow. That's what we have picked and uh and we we were quite 38:41 38 minutes, 41 seconds confident that based on where we're at right now we should have uh each one of these business units that I mentioned can deliver double digit growth and 38:49 38 minutes, 49 seconds that's our goal to grow them. No what I'm asking is the the path to 10% is not like you're seeing that there's a path and you can see you going there. 38:56 38 minutes, 56 seconds There's no big obstacles that will not allow us to go there. You you see you don't see any new challenges that will stop us like you can see it that we can go there with time. That was what my 39:04 39 minutes, 4 seconds question was like. I know we were not at 10. 39:09 39 minutes, 9 seconds I think in general terms the market would not prevent any player from achieving 10% provided they have good 39:15 39 minutes, 15 seconds assets and uh you know good capital availability. I mean they commission their assets and they have good assets uh from team technology knowhow uh the 39:24 39 minutes, 24 seconds market will not prevent them. I do believe we are one of those players. 39:27 39 minutes, 27 seconds Yes. So nothing should prevent us from getting to 10%. 39:30 39 minutes, 30 seconds Thank you sir. Thank you very much and all the best sir. Thank you. Thank you. 39:37 39 minutes, 37 seconds We take the next question from the line of Rahul Kumar from Vera Fund. Please proceed. 39:43 39 minutes, 43 seconds Yeah. Hi. Uh so uh actually uh can you help us understand the monthly run rate for the PB in India now uh versus what 39:52 39 minutes, 52 seconds it was in Q3 and uh also can you help us understand the impact of the steep price uh increase uh on the PV in India. 40:04 40 minutes, 4 seconds Uh overall 442 crores is what uh we have done uh in terms of the custom business design building uh solution company 40:13 40 minutes, 13 seconds which is close to around uh 145 crores kind of a thing and uh in terms of the overall number uh that's 40:21 40 minutes, 21 seconds fair uh coming to your second question uh in terms of seat prices I think seat 40:27 40 minutes, 27 seconds prices as as we as we have uh alluded in our calls and other things the price 40:34 40 minutes, 34 seconds increase uh directly do not uh impact us in any way. Uh there are short-term contracts and there are long-term 40:40 40 minutes, 40 seconds contracts. Uh we have uh the quarterly pricing with JSW wherein we are protected for the next quarter uh rate 40:49 40 minutes, 49 seconds and what we have the indication from them and then the long-term contracts we are uh the increase margin is is there 40:57 40 minutes, 57 seconds as part of the contract. So any increase or decrease we'll have to pass on uh to the customers. So uh that's how the contracts are worded. 41:07 41 minutes, 7 seconds So I hope that answers your question. 41:10 41 minutes, 10 seconds Okay. Okay. So what's the mix of these uh long-term and short-term contract in our in this PV? 41:18 41 minutes, 18 seconds Uh on a quarter basis we receive as we said close to 700 780 crores of uh short-term contracts. In long term uh 41:26 41 minutes, 26 seconds the overall the P cycle itself uh is 6 months. So on an average certain contract can be higher than 6 months and there are a lot of contracts that are 41:34 41 minutes, 34 seconds less lesser than 6 months. So maximum the order book that we have is is executable over a period of 6 months. 41:42 41 minutes, 42 seconds Okay. Okay. Uh no actually on on the monthly run rate uh I think sometime back you mentioned that you know our PB 41:50 41 minutes, 50 seconds India business is back on growth target growth uh you know trajectory and the monthly run rate has improved. So I was 41:58 41 minutes, 58 seconds uh wondering what is the monthly run rate of the India PB now versus let's say October November and uh it was impacted. 42:08 42 minutes, 8 seconds Yeah, I'll come back to you with the exact precise number on Yeah, we'll give you the exact number because that's uh the revenue number 42:16 42 minutes, 16 seconds we're at right now in a month. We want to make sure that's something we can communicate well. But what we can tell you is that the monthly run rate right 42:23 42 minutes, 23 seconds now compared to what it was two months ago, 3 months ago is higher by double digit numbers. You can say almost north of 20% higher. 42:32 42 minutes, 32 seconds So it's it's it's growing and growing quickly India. 42:37 42 minutes, 37 seconds Okay. Okay. Understood. That's true. Uh second question uh is something I would request you to join back the 42:46 42 minutes, 46 seconds queue as there are several participants waiting for their turn. 42:51 42 minutes, 51 seconds Okay, we take the next question from the line of Pratik Bandari from AR Ventures. 43:02 43 minutes, 2 seconds Please proceed. 43:04 43 minutes, 4 seconds Yeah, hi sir, thanks for the opportunity. Uh you mentioned that uh with uh the renewal of duty from 50 to 43:10 43 minutes, 10 seconds 18% in hydraulics that would enable you to grow substantially, right? So can you 43:18 43 minutes, 18 seconds you know quantify the numbers with which you can grow there in the hydraulics division. This was my first question. 43:25 43 minutes, 25 seconds The second Hello. Sorry. Go ahead. 43:29 43 minutes, 29 seconds Yeah. So my second question was you mentioned that you have an order your you know the hydraulics division order book also has doubled. So if you can 43:37 43 minutes, 37 seconds quantify the number of the same and uh and what has been the monthly run rate for the boilers division in terms of revenue. 43:46 43 minutes, 46 seconds So these were my three questions. 43:49 43 minutes, 49 seconds Okay. So we do not uh as yet provide uh revenue breakup across all five of these revenue verticles right now. Uh once we 43:58 43 minutes, 58 seconds start doing that we'll be able to provide that data for you. Let me get as close as I can to answering your question. So hydraulics order booking uh 44:05 44 minutes, 5 seconds because of the change in the US duty structure it's still something that we are fully mapping out. All I can commit to is that our order backlog will grow a 44:13 44 minutes, 13 seconds lot more but please do give us this quarter next quarter onwards we will provide an exact number for how much our order backlog is going to grow because 44:22 44 minutes, 22 seconds of because you're still mapping out the impact and uh as of right now it looks extremely encouraging but I don't have an exact impact number for you. I can 44:30 44 minutes, 30 seconds tell you however that the order backlog is projected to more than double in the next uh few weeks. So that I can no so you you mentioned that it has already doubled right. 44:41 44 minutes, 41 seconds Right. 44:44 44 minutes, 44 seconds So but then uh if you can quantify the numbers I mean I wanted to understand as to uh you know the numbers the base 44:52 44 minutes, 52 seconds numbers and compared to as where we stand at the moment in hydraulics. 44:59 44 minutes, 59 seconds Okay. So as I said revenue breaker for hydrox we don't provide. If you want an order backlog number for hydro backlog yeah 45:07 45 minutes, 7 seconds don't believe we've declared that allow us to come back to you. Uh I will I want to give you a number that is there right now. Uh we will get back to you and give you this number. 45:17 45 minutes, 17 seconds Okay. 45:18 45 minutes, 18 seconds And uh in terms of boiler business you know uh what was the order inflow for us during the quarter? We you mentioned 45:26 45 minutes, 26 seconds that we stand at 123 K of order book at the moment and what typically is the execution timeline for the boilers. 45:34 45 minutes, 34 seconds So we we source in a boiler business two kinds of orders. One is the power boilers and one is process equipment boilers. For process boilers the order 45:43 45 minutes, 43 seconds execution cycle is uh much small much smaller much shorter. It's about 3 months to 4 months. For power boilers it tends to be uh a little higher than that 45:51 45 minutes, 51 seconds about 9 months. So the what you see is a blend of both of those sectors. But as a blended average this 120 crores is something we expect to be able to uh revenue out within the next 6 months. 46:03 46 minutes, 3 seconds So so so for power boilers you mentioned the order execution timeline 1 to 4 months and uh which was the second one. 46:12 46 minutes, 12 seconds Sorry process is the shorter duration uh execution cycle uh which is around 4 months. Power boilers is a longer 46:20 46 minutes, 20 seconds duration which is about uh as I mentioned about 9 months. The weighted average you can take about 6 months sir. 46:27 46 minutes, 27 seconds Okay. So the higher execution timeline is a power boiler. That's correct. 46:34 46 minutes, 34 seconds All right. Okay. Thanks a lot. 46:38 46 minutes, 38 seconds Thank you. We take the next question from the line of Nitin Jane from Fair Value Equity Advisor. Please proceed. 46:48 46 minutes, 48 seconds Yeah. Thank you for the follow-up opportunity. Uh sir, last quarter you had mentioned that uh you are able to commit to a minimum of 20% pad growth 46:57 46 minutes, 57 seconds and this call you have lowered it to around double digit. So uh is there can you provide any color on that? What what foresight do you see in the business 47:05 47 minutes, 5 seconds which is uh which is making you retract from the 20% growth commitment? 47:12 47 minutes, 12 seconds Thank you for the question. Um my uh my comment on that is there has been no retraction. Uh we have absolutely have plans in place which will allow our 47:21 47 minutes, 21 seconds profit to grow at 20% for quarter. Uh as I mentioned for uh one of the questions of a previous scholar uh we are quite 47:28 47 minutes, 28 seconds confident that our ability to hit 20% uh uh is dictated by our operating margin 47:35 47 minutes, 35 seconds being what it needs to be and but for these onetime costs I think we would have hit it. It came in quite late in the quarter. I think only in the month 47:43 47 minutes, 43 seconds of uh uh December or maybe even January would be when we we realized this. So that we had tools in place in order to 47:51 47 minutes, 51 seconds make sure that we get that 20%. There's a tremendous amount of le we have on operating margin on what we can what we can pass through steel price increases 47:59 47 minutes, 59 seconds we can pass that in. There's a certain time frame we do we target operating margins and operating margin growth. So from what we have on our plate right 48:07 48 minutes, 7 seconds now, our order backlogs, the revenue streams, our customer and our capacity to we're quite confident of delivering 20% uh growth. So there's no in profit. 48:16 48 minutes, 16 seconds So there's no uh uh we're not there's no correction that we're offering on that. These plans that we have are long-term. 48:23 48 minutes, 23 seconds They're not dictated by any short-term events such as steel price volatility or even even things such as markets for 48:30 48 minutes, 30 seconds example. So uh we'd like to commit that and recommit that we are committed to that number double digit profit growth 48:37 48 minutes, 37 seconds and yes what you mentioned 20% is is absolutely the stated target for us right and my last question is 48:45 48 minutes, 45 seconds specifically into the PB business uh it seems that uh like maybe due to some new reason every quarter we are consistently 48:53 48 minutes, 53 seconds underperforming uh every quarter compared to what commitments we have made in the previous call and I think somewhere it is reflecting in the market 49:00 49 minutes strong reaction to the price as well this morning. So is there any particular reason why we are uh like consistently 49:08 49 minutes, 8 seconds overpromising and underdelivering in that business? 49:13 49 minutes, 13 seconds I mean I would hesitate to uh attribute short-term uh share price movements to any particular aspect of 49:20 49 minutes, 20 seconds it. I think our uh our duty is to make sure that we are communicating exactly what we're going to achieve from a revenue point of view. travel digit 49:28 49 minutes, 28 seconds revenue growth exactly what we're going to achieve on a profitable and that's what we're going to continue doing we've executed on that plan and the most important thing for us is that we say 49:35 49 minutes, 35 seconds what we do coming to the PB space we had highlighted the concern we had on labor which led to lower capacity utilization there was nothing wrong with the market 49:43 49 minutes, 43 seconds per se or auto backlogs remain strong we have now fixed those issues so that will continue to deliver growth and uh I I I 49:52 49 minutes, 52 seconds think I I could I cannot comment on what the share price does on a short-term basis. What I can commit to is as our 50:00 50 minutes profit growth, it is I believe our expectation that the B multiple holds up which drives up uh our market cap which drives up our share price. So we'll 50:08 50 minutes, 8 seconds continue to execute on that. What we as a as the executive team can commit to is that what we promise you we will ensure we will achieve we'll make every effort 50:17 50 minutes, 17 seconds that is possible to achieve and we are very confident most importantly that we will achieve these numbers. So uh as far as PB is concerned we had highlighted an 50:25 50 minutes, 25 seconds issue and we have solved that issue. So that's that would be my uh that would be my connection. 50:32 50 minutes, 32 seconds Okay, that's all from Thank you. We take the next question 50:40 50 minutes, 40 seconds from the line of Chetan Kumar from Coheron Wealth Limited. Please proceed. 50:47 50 minutes, 47 seconds Hello. Hello. Am I audible? Yeah. 50:53 50 minutes, 53 seconds Hello. Yeah. Thank you. Thank you for the opportunity. Uh so my question was in terms of capacity utilization. Could you just give us a number on what was the utilization for this quarter? 51:04 51 minutes, 4 seconds So capacity utilization uh is a blend across many businesses. There's some businesses uh for example our tubing business and steel where we are near 51:12 51 minutes, 12 seconds extremely high levels of capacity utilization as I referred to on the previous thing. Uh for the last couple of quarters our EB capacity utilization has been on the lower side but that's 51:21 51 minutes, 21 seconds something we have now fixed and that will trend up above 70%. as a blend. 51:25 51 minutes, 25 seconds Overall, we're still at about 70% capacity utilization across all of our uh uh revenue streams. 51:32 51 minutes, 32 seconds Right. Okay. Thank you. And my second question was in terms of which sectors are we seeing growth in in the TV side 51:41 51 minutes, 41 seconds like uh where are we getting the orders from and which industries are you know looking for this space so 51:49 51 minutes, 49 seconds apologies could you your voice was could you repeat that question please it was a little muffled your voice if you could repeat the question 51:57 51 minutes, 57 seconds yeah uh so I just wanted to understand which industries in the PB segment are growing whether it's the data centers infrastructure oil and gas. So, which 52:05 52 minutes, 5 seconds sectors have we seen some traction coming from in the PE space? Yeah. 52:11 52 minutes, 11 seconds Okay. Uh I think the question and correct me if I'm wrong, your question was in which from which sector are we seeing PE uh order info come in? Uh we 52:19 52 minutes, 19 seconds are primarily seeing it in the process engineering space, the automotive space and the high-rise building space. Those are the three growth vectors where we've received uh significant order inflows. 52:31 52 minutes, 31 seconds Nice. Perfect. Thank you. Thank you. 52:38 52 minutes, 38 seconds We take the next question from the line of Mira Sha from CJ Sha. You may proceed. 52:47 52 minutes, 47 seconds Okay. 52:47 52 minutes, 47 seconds Thank you for the opportunity. uh most of my questions were answered but uh for for my couple of questions that are still remaining uh if you can s just 52:56 52 minutes, 56 seconds once again touch upon how steel prices are impacting uh the increase in steel price or the decrease in steel price that impact in 53:02 53 minutes, 2 seconds the pebb space. Uh you did mention that you have some short-term contracts and some long-term contracts. So if you can 53:08 53 minutes, 8 seconds just uh highlight it a bit u a bit u more so that I can understand how the long-term contracts will work over here. 53:17 53 minutes, 17 seconds That's my first question. And uh on the second question on PB side if you can explain uh what exactly do we do in a 53:26 53 minutes, 26 seconds high-rise building? What exactly is the component that we service over there? 53:32 53 minutes, 32 seconds Uh I I'll request let me answer the first question. I'll request a little bit of clarity on the second question. 53:36 53 minutes, 36 seconds So as far as steel prices are concerned we are not a perfect but a near perfect pass through and as Shikant had mentioned the way this happens is we have quarterly rate contracts with 53:44 53 minutes, 44 seconds steel. So any steel price increase typically we have uh one and a half to 3 months to pass on what we need to depending on when that price increase 53:52 53 minutes, 52 seconds comes in. So that's an advantage. More importantly, a lot of our uh uh contracts have price escalation clauses. 53:59 53 minutes, 59 seconds So it's effectively a pass through. What we do need to be careful about when there's massive steel price increases is that we retain not just the spread but 54:07 54 minutes, 7 seconds also the percentage. So that our and that's something that we are very clear with our customers on that are that we are going to request and demand a 54:15 54 minutes, 15 seconds certain operating margin in these businesses a certain margin after variable and uh we on that basis we tend to pass through everything that we get. 54:24 54 minutes, 24 seconds Uh that's as far as steel pricing is concerned and the impact of that on our revenue and our margins. Uh the second question uh that you mentioned could you 54:32 54 minutes, 32 seconds just clarify that sir please if I I wasn't sure I understood it well enough. 54:36 54 minutes, 36 seconds No. So I wanted to understand in a high-rise building that we do compared to any other building because 54:43 54 minutes, 43 seconds in PB is usually we doing we don't do extremely tall structures. So I wasn't sure what exactly is a high-rise 54:50 54 minutes, 50 seconds building that we make over here. If you can just explain what is the high-rise building and do we do the entire building or do we do only selected components of that structure? If you can just explain on that. 55:02 55 minutes, 2 seconds It's a uh fine uh the scope of uh services we provide in the high-rise building sector is very similar to what we provide in the pre- internet building 55:09 55 minutes, 9 seconds sector which is we provide design manufacturer components and shipping site and these are primarily the structural framework on the of the 55:17 55 minutes, 17 seconds building. So building shells if you will. So we don't do interiors, we don't do lighting, we don't do HVAC, we don't do any of that. Uh the difference 55:25 55 minutes, 25 seconds between what we would do in the pre-ent building space and what we do in the high-rise space is that it tends to have more floors. So incorporates uh elements 55:33 55 minutes, 33 seconds such as structural decking and uh and in the design itself for example we would we would be taking into account the compressive load which is much higher. 55:41 55 minutes, 41 seconds So traditional PEBB very very seldom goes above four floors even with intermediate mezzanines and structures ground plus 4 high-res buildings we've 55:49 55 minutes, 49 seconds done as high as ground plus 16 and it's the same model it's a very similar timeline and uh we commit after the civil's been done we wreck the 55:58 55 minutes, 58 seconds structures we erect the intermediate floors and typically about 3 to 6 months is the duration of the project that's uh 56:05 56 minutes, 5 seconds uh that's the scope and the timeline and the and the value proposition we provide in the high-rise building Yes, 56:12 56 minutes, 12 seconds understood. Great. Thanks a lot for for answering the questions. I think so you mentioned in the pass on you mentioned that you pass on with a percentage as well, right? So you'll be benefiting uh 56:21 56 minutes, 21 seconds with increase in spreads, absolute spreads. 56:25 56 minutes, 25 seconds That is correct. And and this is this stands for India, the US, even in the US you do tend to see these price swings. 56:31 56 minutes, 31 seconds So we pass on margin and we pass on percentage. 56:34 56 minutes, 34 seconds In the case of price increase, in the case of price decrease, we try to and a lot of this is automated. It's not really that we have to go ask our customers whether it's a price 56:42 56 minutes, 42 seconds escalation contract or SIAM automotive index link pricing. Typic these pricing previews come in automatically. The contract actually baked in. So we don't 56:50 56 minutes, 50 seconds have to do much. Uh most importantly is from a risk management point of view we are not exposed to dramatic uh issues 56:58 56 minutes, 58 seconds with our margins in the case of uh prices price increases. That's that's what we aim for. 57:04 57 minutes, 4 seconds Unders. But in in falling prices we would have to pass on the benefit as well right as spreads would contract. 57:11 57 minutes, 11 seconds That is correct and we have seen that happen historically where steel price falling precipitous steel price falls we retain as much as possible we try to 57:19 57 minutes, 19 seconds retain the value at that point and not the percentage because then you know uh but we found that uh you know it 57:27 57 minutes, 27 seconds wouldn't be fair of us to demand a percentage when it's going up and then say no it's only value added. So there is that element to it but as it stands I 57:35 57 minutes, 35 seconds think commodity price crashes are quite quite rare. So I I wouldn't see it as a high-end risk as a high value uh risk for us. 57:44 57 minutes, 44 seconds Great. Thank you so much for answering my questions. Thank you. 57:48 57 minutes, 48 seconds Thank you. We take the next question from the line of Ashi Sony from family office. Please proceed. 57:56 57 minutes, 56 seconds Sir what's the capacity utilization of rival plant on 31st December and currently 58:04 58 minutes, 4 seconds so that's uh rival is uh has gone up uh as of right now we are at about 60% 58:10 58 minutes, 10 seconds capacity utilization we'll get to uh we'll get to 70 by the end of this quarter okay and second question on the excent 58:19 58 minutes, 19 seconds US that order book is like hovering between like 50 to 55 million USD so are we not able to scale that or are we not able to get more orders in US business? 58:31 58 minutes, 31 seconds Not at all. I think I think we're at a place now especially with a new express line getting commissioned. Uh we at a place now that we are uh going to be increasing that order backlog as well. 58:41 58 minutes, 41 seconds So I see uh with the addition of new DMS and I speaking specifically for SN buildings and not for telco that's a different business model but with the 58:50 58 minutes, 50 seconds addition of our express line and uh a new sales team also has come on board I see absolutely no issues with us being able to scale our auto backlog. The the 58:59 58 minutes, 59 seconds one nuance here is in India you can keep these 6 month 8 month 9 month even even longer than that sometimes auto backlogs in the US is much shorter generation. I 59:08 59 minutes, 8 seconds mean 6 months is the max really you ideally should not hold much more than that because uh customers expect quicker 59:16 59 minutes, 16 seconds delivery in the US and any plans to because your 70% utilization library will happen by end 59:24 59 minutes, 24 seconds of this quarter you're seeing so any plans for any more plants in pe in India we will get back to you on that sir 59:31 59 minutes, 31 seconds there are there are discussions we are having on this but I think once we not put the labor issue behind us once we reach high capacity utilization in PEB. 59:40 59 minutes, 40 seconds Uh we will we will look to further expand capacity but as of right now I don't have the numbers for you on that. 59:45 59 minutes, 45 seconds Next quarter we we put something in front. Yeah. 59:48 59 minutes, 48 seconds And one last question any plans for the land bank you have? 59:52 59 minutes, 52 seconds Ashish I would request you to join back the queue as there are several participants waiting for their own. 1:00:00 1 hour Okay fine. 1:00:04 1 hour, 4 seconds Thank you. We take the next question from the line of Persav Sha from Meta Equities. Please proceed. 1:00:12 1 hour, 12 seconds Hello sir, I want to ask about the repeat orders of our PB orders. 1:00:18 1 hour, 18 seconds So a significant component of our order backlog is repeat. Uh sometimes it trends about 50%. 1:00:24 1 hour, 24 seconds Right now I don't have an exact number but I'm quite confident it's a high number because all of the large customers that we have whether it's JSW 1:00:31 1 hour, 31 seconds whether it's Godidge whether it's uh uh by home and and fararma uh all of those are repeat customers so the proportion 1:00:39 1 hour, 39 seconds of repeat customers in our order backlog is is is high and it uh and has always been high. 1:00:46 1 hour, 46 seconds Okay. Okay. And uh on the same uh line of as per our the repeat orders is good. 1:00:54 1 hour, 54 seconds So existing order but uh do you see another side of the coin that we have a lower bargaining power and high 1:01:01 1 hour, 1 minute, 1 second dependency on uh their kind of customer base. 1:01:06 1 hour, 1 minute, 6 seconds Yeah. I'm sorry. Could you repeat that question? You said lower buying power. Is that could you elaborate? Yes. Yes. 1:01:13 1 hour, 1 minute, 13 seconds high dependency on this uh this kind this kind of a customer uh no I wouldn't say that um no customer 1:01:23 1 hour, 1 minute, 23 seconds contributes more than 6% of our revenue it used to be higher 7 8% and now that's actually covered as we grow the diversity of our customer base is quite 1:01:31 1 hour, 1 minute, 31 seconds high so we're not very dependent on any customer and we don't do any government revenue either so it's entirely private sector it's it's very diversified so 1:01:40 1 hour, 1 minute, 40 seconds customer risk is is quite quite low There is no possibility that uh exposure to a limited customer base reduces our 1:01:48 1 hour, 1 minute, 48 seconds revenue. We we we I don't see that happening. Perfect. Perfect. All the best. 1:01:55 1 hour, 1 minute, 55 seconds Thank you. 1:01:57 1 hour, 1 minute, 57 seconds Thank you. We take the next question from the line of Ain Tari from Vara. Please proceed. 1:02:06 1 hour, 2 minutes, 6 seconds Hi. Uh can you give uh some uh mix or color on your uh USPB order book in 1:02:13 1 hour, 2 minutes, 13 seconds terms of whether it is construction related, manufacturing related, warehousing, data centers, you can 1:02:20 1 hour, 2 minutes, 20 seconds whichever u color you can give current order book or ones you are building up right now. 1:02:27 1 hour, 2 minutes, 27 seconds So the 52 is a blend. It's geared more towards uh warehouse and data centers. 1:02:32 1 hour, 2 minutes, 32 seconds Data centers is doing quite well in the US. uh a major driver of a US order book and why we're very confident that can scale also is the discussions we're 1:02:40 1 hour, 2 minutes, 40 seconds having on this. So uh yeah so the primarily it is that 1:02:47 1 hour, 2 minutes, 47 seconds okay last question to Shikhan this uh do you have did you have any acquisition related uh uh cost as well in Q3 you 1:02:56 1 hour, 2 minutes, 56 seconds largely booked in Q2 but was there anything in Q3 also or Q3 was cleaned out of that? 1:03:03 1 hour, 3 minutes, 3 seconds uh slightly I I I maybe one or two crores uh additional cost would have come but nothing more than that. I think 1:03:10 1 hour, 3 minutes, 10 seconds majority of the cost was recorded in uh Q2. Okay. Thank you and wish you very best. 1:03:20 1 hour, 3 minutes, 20 seconds Thank you. We take the next question from the line of Vinod Krishna from Aendas wealth. Please proceed. 1:03:28 1 hour, 3 minutes, 28 seconds Sir I'm audible. 1:03:30 1 hour, 3 minutes, 30 seconds Yes. So can you throw more light on competitive landscape in both US and India in terms of pebb like in US I know 1:03:37 1 hour, 3 minutes, 37 seconds you're a very small player so what is giving us the confidence that we can scale up and as the previous participants asked we were are we are just I won't use the word stuck but the 1:03:46 1 hour, 3 minutes, 46 seconds auto book looks around it remains at the same 55 60 million 50 million so how many how can we scale and why do you think we can scale in US and India how 1:03:55 1 hour, 3 minutes, 55 seconds is the competitive landscape changing are the new players entering or how is our market shares trending in India So if I if I make made myself clear. 1:04:04 1 hour, 4 minutes, 4 seconds Thank you. 1:04:05 1 hour, 4 minutes, 5 seconds So let me first clarify the 52 number. U as you're aware if you look at the total order backlog in the US which includes telco plus US buildings perhaps that we 1:04:14 1 hour, 4 minutes, 14 seconds have not been clear on that. If you combine both of the 62 million and that's at a 30% growth over the last 6 months. So I wouldn't say that we are 1:04:22 1 hour, 4 minutes, 22 seconds unable to grow our auto backlog in the US. I would say it's quite contrary and we expect this to grow even further. So uh I don't see a challenge in scaling 1:04:30 1 hour, 4 minutes, 30 seconds our US business revenue. In fact uh uh doubledigit growth as we keep saying double digit growth and that's sometime that's a quite a big range but our US 1:04:38 1 hour, 4 minutes, 38 seconds business is is in a great place to grow quite strongly and we are quite confident of that and that's on the back of a fast growing out of cat backlog and new capacity that's been commissioned. 1:04:47 1 hour, 4 minutes, 47 seconds So that's as far as the US is concerned and comparative intensity in the US, you are right. Uh we are a smaller player. 1:04:54 1 hour, 4 minutes, 54 seconds We are uh not in the top five. Uh we're probably not in the top 10 either. But I think we made a great beginning and the 1:05:01 1 hour, 5 minutes, 1 second market size in the US is so massive that all we have to do is keep pushing out our market envelope from the Midwest and 1:05:08 1 hour, 5 minutes, 8 seconds the south that we are at right now little more towards the west. We don't do a lot of uh deep south either. I think that will ensure that we have 1:05:15 1 hour, 5 minutes, 15 seconds enough to sustain a high growth rate for the foreseeable future. So that's how we see the US. As far as India is concerned, the comparative intensity in 1:05:23 1 hour, 5 minutes, 23 seconds India, we would be either number three or number four depending on who you ask. 1:05:27 1 hour, 5 minutes, 27 seconds Uh with rivalry having been commissioned and with this issues that we're having on labor, I think our capacity position increasing uh helps us scale as well. So 1:05:36 1 hour, 5 minutes, 36 seconds as the rest of the market is growing, I'm quite confident we can grow uh as well. So the our competitors seem to be doing well. uh we will uh we will intend 1:05:45 1 hour, 5 minutes, 45 seconds to grow and scale our business as well in line with them. Uh we are not really curtail backlog from what I'm hearing this 8 10 crores 820 crores going to 1:05:54 1 hour, 5 minutes, 54 seconds even 900 crores is not something that's prohibitively difficult to do but we needed to fix our capacity creation issues and that's what we have focused 1:06:01 1 hour, 6 minutes, 1 second on uh I'm quite confident both US and India from a metal building space is in a good place for the next not just for this quarter and next quarter this year 1:06:09 1 hour, 6 minutes, 9 seconds but over the next few years as well. So uh I don't see a lot. 1:06:14 1 hour, 6 minutes, 14 seconds So my question on US was what is allowing us to grow when we are such a small guy and it's an established industry. What are the factors or the 1:06:22 1 hour, 6 minutes, 22 seconds tailwinds that we tailwinds for the market is there but what is that is allowing us to grow okay u so I think what dictates are 1:06:31 1 hour, 6 minutes, 31 seconds anyone's ability to grow in a market is a large addressable market and good quality assets. So in a B2B business if you have B2C it's harder of course and I 1:06:39 1 hour, 6 minutes, 39 seconds mean let me not speak of B2C because I have no knowledge of those business verticles but in the B2B space what our philosophy is is that if you have good 1:06:47 1 hour, 6 minutes, 47 seconds quality assets which is not just production capacity but good engineering talent and good uh uh you know DM relationships which is what we tend to 1:06:54 1 hour, 6 minutes, 54 seconds focus on in the US. So just focus on these issues. In fact, just having good uh good quality DMs itself uh sales uh 1:07:03 1 hour, 7 minutes, 3 seconds uh itself puts us in a position where we can very quickly take market share. So that's what's driving our growth in the 1:07:10 1 hour, 7 minutes, 10 seconds US. Uh and now we present in the US for 5 years. We started off at about a $20 billion level and now in the US our 1:07:17 1 hour, 7 minutes, 17 seconds revenue streams are this year we expect it to be much higher uh north of 110 120 million. So I don't see 1:07:26 1 hour, 7 minutes, 26 seconds uh if the narrative is we're a small player we're competing with much larger players we'll not be able to grow that is I am 100% confident is not the case. 1:07:36 1 hour, 7 minutes, 36 seconds Thank you sir. Thank you very much sir. All the best. Thank you. 1:07:43 1 hour, 7 minutes, 43 seconds We take the next question from the line of Pratik Bandari from Art Ventures. Please proceed. 1:07:50 1 hour, 7 minutes, 50 seconds Yeah. Hi sir. Thanks for the opportunity. So sir if I exclude your other income which was relatively 16 crores during the quarter as compared to 1:07:59 1 hour, 7 minutes, 59 seconds almost 7 crores during the same quarter last year uh then there is a degrowth in the eida as well. So when you say about 1:08:08 1 hour, 8 minutes, 8 seconds your AIDA margins and when you guide for the AIDA margins uh you know do you guide inclusive of other income or uh 1:08:16 1 hour, 8 minutes, 16 seconds how should we take it as inclusive of other incomes inclusive of other income and again I don't want to 1:08:23 1 hour, 8 minutes, 23 seconds belabor the one-time expenses point too much but uh what we're committing to is one time means one time I shouldn't come back your next quarter and say there's 1:08:31 1 hour, 8 minutes, 31 seconds more one time cost right I mean that doesn't make sense so I think what we're guiding you to is sustainable aa Evita margins all growing year on year for us. 1:08:42 1 hour, 8 minutes, 42 seconds Okay. And also sir one request if you can you know uh in your presentation if you can give some uh detailed data uh 1:08:50 1 hour, 8 minutes, 50 seconds about the different aspects in terms of order booking in terms of the growth of those verticals. It would help us understand the business verticles better 1:08:59 1 hour, 8 minutes, 59 seconds and as to see understand which of the verticals are growing and which are lagging behind. So just a request at that end. 1:09:07 1 hour, 9 minutes, 7 seconds Understood. So sir, so for these five verticals, all of which tend to be uh order backlog based or scheduled customer base, we will submit uh a table 1:09:15 1 hour, 9 minutes, 15 seconds soon. Uh give us a quarter or max two quarters on this. We're getting our ducks lined up on this. Uh I am quite confident that in the near term itself 1:09:24 1 hour, 9 minutes, 24 seconds we will be able to give you what you're asking which is for these five growth vectors give you an idea every quarter on what the market size is, what our order backlog is, what our projected 1:09:32 1 hour, 9 minutes, 32 seconds revenue is going to be and the operating margins we're functioning at. I think that should go a long way towards explaining how we what we're going to grow and how those sectors are growing. 1:09:40 1 hour, 9 minutes, 40 seconds So uh point taken and I agree with you absolutely because those would be self-explanatory because uh you know you would also be seeing that there comes 1:09:49 1 hour, 9 minutes, 49 seconds repeated questions on those verticals and the trajectories and how we are growing and in terms of order books. So that would really be helpful for the uh you know for everyone's sake. Thank you. 1:10:01 1 hour, 10 minutes, 1 second Understood. Thank you. 1:10:08 1 hour, 10 minutes, 8 seconds We take the next question from the line of Van from MAS Investments. Please proceed. 1:10:18 1 hour, 10 minutes, 18 seconds I would request Mr. Vedan to unmute and then uh are you able to hear me sir? 1:10:25 1 hour, 10 minutes, 25 seconds Yes. Go ahead please. Sir, I want to know how will your US business landscape change with the kiten sectoral tariff 1:10:33 1 hour, 10 minutes, 33 seconds that is uh being discussed in a few sections. Could you repeat that? US business plan. 1:10:40 1 hour, 10 minutes, 40 seconds Sectoral tariff in US is around 50%. 1:10:42 1 hour, 10 minutes, 42 seconds Right. Sir I wanted to know if that is reduced. So how will our US business cope up with that? 1:10:50 1 hour, 10 minutes, 50 seconds I think a major growth vectors are India and the US. India is about 60% 35% is the US 5% is Europe more or less that 1:10:57 1 hour, 10 minutes, 57 seconds proportion will sustain. So the growth rates we're seeing in the US and the growth rate we'll see in India and the they may be quarter to quarter differences but over the 2 three year 1:11:05 1 hour, 11 minutes, 5 seconds time frame I think both are poised for extremely aggressive growth and we're quite happy with what the base year set 1:11:12 1 hour, 11 minutes, 12 seconds up in the US. So uh remain same or uh increase or decrease in the US business 1:11:21 1 hour, 11 minutes, 21 seconds if the US if the US no margins in the US tend to be 1:11:28 1 hour, 11 minutes, 28 seconds remarkably stable. Uh it's uh to some extent I think the claim can be made that it is a less competitive space but 1:11:35 1 hour, 11 minutes, 35 seconds it is a spa it is a a geography where you want to invest a lot of time. I think one of the advantages we have is that we've been there directly with 1:11:43 1 hour, 11 minutes, 43 seconds assets with factories and others for 5 years and it uh through the pandemic and uh through other periods of economic stress as well. So we understand the 1:11:51 1 hour, 11 minutes, 51 seconds market well but uh uh I think it's a market where you invest a lot of time but once you do that margin tends 1:11:58 1 hour, 11 minutes, 58 seconds margins tend to be stable. There's no uh there's less uh price gouging and at aggressive pricing all of that doesn't really happen. It seems very stable as a market. 1:12:07 1 hour, 12 minutes, 7 seconds Okay. Thank you sir. That's it. 1:12:12 1 hour, 12 minutes, 12 seconds Thank you. We take the next question from the line of Rahul Kumar from Vara Fund. Please proceed. 1:12:19 1 hour, 12 minutes, 19 seconds Yeah. Hi, uh just last question. Uh this is on the US business. Uh if you can 1:12:26 1 hour, 12 minutes, 26 seconds just quantify how has the order pipeline uh you know moved now versus what it was uh you know last quarter. 1:12:37 1 hour, 12 minutes, 37 seconds So we've had strong order booking in the last few months. I think as I mentioned in a previous scholars question, we've increased our TM team and we've also 1:12:46 1 hour, 12 minutes, 46 seconds added a new line of uh sales team. We call it express plus which is faster cycle time buildings. Uh a lot of automation also in the manufacturing. So 1:12:54 1 hour, 12 minutes, 54 seconds uh combination of all of that the overall lot of backlog has grown. I think if you combine both revenue streams and uh buildings and structural uh buildings if you add uh telco you get 1:13:03 1 hour, 13 minutes, 3 seconds to about 62 million. That's a lot of backlog right now. We have every expectation that this is going to grow further. 1:13:09 1 hour, 13 minutes, 9 seconds Okay. No, I was actually referring more to you know the bid pipeline uh which is there the based on which uh you know the 1:13:18 1 hour, 13 minutes, 18 seconds success rate uh gives you this 52 and $10 million. So I was wondering more what is a bid pipeline in the US? 1:13:27 1 hour, 13 minutes, 27 seconds By by pipeline do you mean lead generation, quote activity, order booking, running? Do you mean that that that uh cycle? Yeah. 1:13:34 1 hour, 13 minutes, 34 seconds Okay. So uh I don't have those numbers for you right now and I will we'll work I'll work together. I mean it's I can tell you it's healthy but I think the 1:13:42 1 hour, 13 minutes, 42 seconds best way to illustrate that is what is our code activity? I will come back to you with that number. 1:13:49 1 hour, 13 minutes, 49 seconds Okay. The second question uh Shriant uh can you help us understand uh in the diversified engineering segment uh how much was the tooling sales in this quarter versus versus the last quarter? 1:14:02 1 hour, 14 minutes, 2 seconds Uh overall with the BW sales tooling sales have not been uh uh not been major uh change in the current quarter from last quarter to this quarter. 1:14:12 1 hour, 14 minutes, 12 seconds Overall increase has come from steel business boiler and BW but yeah tool is not one time event which has triggered now. 1:14:22 1 hour, 14 minutes, 22 seconds Okay. Okay. Understood. 1:14:28 1 hour, 14 minutes, 28 seconds Thank you. We take the next question from the line of Anik from CRK. Please proceed. 1:14:45 1 hour, 14 minutes, 45 seconds I would request Mr. Anik to unmute and then speak. 1:14:53 1 hour, 14 minutes, 53 seconds Hello. Sorry. Sorry. Sorry. Really? 1:14:56 1 hour, 14 minutes, 56 seconds uh almost all of my questions were already answered but uh I would still 1:15:02 1 hour, 15 minutes, 2 seconds like to ask more upon the PEB part like uh can can I know like what sort of uh 1:15:10 1 hour, 15 minutes, 10 seconds like order books we have once again because I missed the earlier given number 1:15:18 1 hour, 15 minutes, 18 seconds u the voice isn't clear but I yeah I think this is a repetitive question but uh I would like to clarify 1:15:25 1 hour, 15 minutes, 25 seconds The order book stands at 810 crores. The ascent company's order book stands with uh as buildings specifically 52 and 1:15:34 1 hour, 15 minutes, 34 seconds structurals 10 million. So if you're asking what's the order book that's the answer 1:15:40 1 hour, 15 minutes, 40 seconds thank you thing I missed the previous given. Thank you. Thank you for that. 1:15:48 1 hour, 15 minutes, 48 seconds The voice isn't clear. He said all the previous questions. Oh okay. All right. All right then. Yeah. Yeah. Okay. 1:15:55 1 hour, 15 minutes, 55 seconds Most of the questions were answered already. Thank you. Yeah. 1:16:05 1 hour, 16 minutes, 5 seconds Thank you. 1:16:07 1 hour, 16 minutes, 7 seconds We take the next question from the line of Ankit, an individual investor. Please proceed. 1:16:14 1 hour, 16 minutes, 14 seconds Uh uh hello sir. Am I audible? Yes, please go ahead. 1:16:20 1 hour, 16 minutes, 20 seconds Yeah. Thank you for taking my question sir. on on in terms of uh as in people have already asked this question but let me rephrase it uh in terms of our bitter 1:16:29 1 hour, 16 minutes, 29 seconds term because if you are including other income I think you also said there is 8 k of uh receivable which we have 1:16:37 1 hour, 16 minutes, 37 seconds received in this quarter which logically should be one of so if I exclude just that number I think our margins have 1:16:44 1 hour, 16 minutes, 44 seconds gone down so can you comment what why is that and what is your outlook for for the coming year, quarter and years. 1:16:55 1 hour, 16 minutes, 55 seconds Yeah, it includes right back uh of crisis uh discounts as well as uh the receivables. Those are all uh other 1:17:03 1 hour, 17 minutes, 3 seconds income which are basically the provisions which we make uh right back of those provisions kind of a thing. So as I said I have we have exchanged in 1:17:12 1 hour, 17 minutes, 12 seconds our earlier record when you when you look at us look other income as part of operating income and and go through it and remove those one-time expenses that 1:17:21 1 hour, 17 minutes, 21 seconds we have uh sorry on this 8 8 cr of receable do 1:17:28 1 hour, 17 minutes, 28 seconds you expect this number to kind of continue going into future how should we look at it some portion will continue to come into 1:17:36 1 hour, 17 minutes, 36 seconds picture uh but uh but some portion which is which are one time of right back of receivables and other things that we have that is not and right back of 1:17:44 1 hour, 17 minutes, 44 seconds receivables and other things is not a substantial number. 1:17:51 1 hour, 17 minutes, 51 seconds Got it. And so what is our outlook for Q? 1:17:55 1 hour, 17 minutes, 55 seconds Mr. An request you to join back the queue as there are several participants waiting for their turn. 1:18:03 1 hour, 18 minutes, 3 seconds Sure. Thank you. 1:18:07 1 hour, 18 minutes, 7 seconds We take the next question from the line of Sudaran BJA an individual investor. Please proceed. 1:18:14 1 hour, 18 minutes, 14 seconds Yeah. Hi, just wanted to Can you hear me? Yes, please go ahead. 1:18:20 1 hour, 18 minutes, 20 seconds Yeah. Last call also you mentioned that labor issue is behind uh behind our course and Q3 should have been better 1:18:29 1 hour, 18 minutes, 29 seconds compared to what we have done. uh obviously uh that doesn't seems to be uh but can you assure us now that Q4 will 1:18:37 1 hour, 18 minutes, 37 seconds have no impact of any of your past issues? We uh we have solved the labor problem. 1:18:46 1 hour, 18 minutes, 46 seconds We've solved it late last quarter. Uh the impact the positive impact from that would not have been seen in the full quarter. However, in this entire 1:18:53 1 hour, 18 minutes, 53 seconds quarter, you will see in fact uh let me make it clear this you will see much higher levels of revenue in PB 1:19:02 1 hour, 19 minutes, 2 seconds India this quarter compared to last quarter. So that that I can we are absolutely putting on the table. 1:19:07 1 hour, 19 minutes, 7 seconds Great. And the second point is uh with the current capacity of EB what could be our maximum uh uh monthly revenue we can generate? 1:19:19 1 hour, 19 minutes, 19 seconds If uh you were to combine u India the US and uh and the US both for PEBB and uh 1:19:26 1 hour, 19 minutes, 26 seconds structurals are uh uh at peak capacity let's say let's say 80 80% I think is fair I don't think we should go much 1:19:33 1 hour, 19 minutes, 33 seconds higher than that uh we we will we will absolutely be able to hit uh a revenue 1:19:40 1 hour, 19 minutes, 40 seconds number closer to 200 to 220 crores per month. Okay, great. I hope that we give better results this quarter onward 1:19:49 1 hour, 19 minutes, 49 seconds because last quarter has been bit of a disappointment but uh we keep our finger crossed and we hope no more one time uh 1:19:57 1 hour, 19 minutes, 57 seconds expenses comes in the picture in the future. 1:20:01 1 hour, 20 minutes, 1 second Criticism sir, we will take it to heart and ensure that uh what we have committed we deliver. Okay. Thank you. Yes. Fair clear. Thank you. 1:20:10 1 hour, 20 minutes, 10 seconds Thank you. 1:20:12 1 hour, 20 minutes, 12 seconds As there are no further questions from the participants, I would now like to hand the conference over to the management for closing comments. 1:20:20 1 hour, 20 minutes, 20 seconds Thank you for your questions. Uh and uh thank you for your support and uh we look forward to deliver on everything that we have uh communicated today and 1:20:28 1 hour, 20 minutes, 28 seconds uh we quite uh uh confident that we have a great quarter and a great next financial year ahead of us. Thank you. 1:20:34 1 hour, 20 minutes, 34 seconds Thanks to all of you again for your support. 1:20:40 1 hour, 20 minutes, 40 seconds Thank you on behalf of Philip Capital India Private Limited. That concludes this conference. Thank you for joining us and you may now disconnect your lines.