Premier Explosives Limited — Q3 FY26

Premier Explosives Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=ZkxsmvjEh2E Published: 2 months ago

0:00 Ladies and gentlemen, good day and welcome to the Q3 FI26 conference call hosted by Premier Explosive Limited. As 0:09 9 seconds a reminder, all participant line will be in the listenon mode and there will be an opportunity for you to ask question after the presentation concludes. Should 0:18 18 seconds you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. 0:29 29 seconds I now hand the conference over to Mr. 0:32 32 seconds Akil Gandhi from Stellar. Thank you and over to you sir. 0:39 39 seconds Akilage Gandhi on behalf of Stella investor relations. Welcome you all to the Premier Explosives quarter 3 and 9 0:46 46 seconds month FI26 earnings conference call. We shall be sharing the key operating and financial highlights for the quarter 3 and 9 months ended on 31st December 2025. 0:58 58 seconds Today we have with us the senior management team of Premier Explosive Limited, Mr. TV Chri. He is a managing director and with him we also have Mr. 1:06 1 minute, 6 seconds Vijay Kumar. He's a chief financial officer. Before we begin, I would like to state that this call may contain some 1:14 1 minute, 14 seconds of the forward-looking statements which are completely based upon the company's beliefs, opinions, and expectations as of today. The statements made into this 1:23 1 minute, 23 seconds call are not a guarantee of future performance and also involve unforeseen risk and uncertainties. The company also 1:32 1 minute, 32 seconds undertakes no obligation to update any forward-looking statement to reflect development that occur after the statement is made. Document relating to 1:41 1 minute, 41 seconds the company's financial performance including the investor presentation have already been uploaded on the stock exchange. I now invite Mr. TV saw to 1:50 1 minute, 50 seconds share his initial remarks on the company's performance for the third quarter and 9 month ended on 31st December 2025. Thank you and over to you. 2:00 2 minutes Thank you Mr. Gandhi. Good morning everyone. I welcome you. 2:07 2 minutes, 7 seconds Are you able to hear me? Yeah. Yes, we can hear you sir. 2:12 2 minutes, 12 seconds Yeah. I welcome you to the earnings conference call of Premier Explosives for the third quarter and 9 months ended December 31st, 2025. 2:21 2 minutes, 21 seconds Thank you for joining us. I trust you have reviewed our Q3 and 9 month FI26 results along with investor presentation 2:30 2 minutes, 30 seconds available on the stock exchanges and on our website. Our performance during the quarter reflects disciplined execution 2:38 2 minutes, 38 seconds across our defense and explosive segments despite a dynamic operating environment. While certain projects progress in a phased manner during their 2:47 2 minutes, 47 seconds or manufacturing operation remain stable and efficient with strong adherance to quality, safety and delivery commitments. 2:55 2 minutes, 55 seconds The year-on-year moderation is primarily due to the elevated pace in the corresponding period last year which included higher dispatches of shafts and 3:04 3 minutes, 4 seconds flares. Execution timing also influenced comparability. 3:09 3 minutes, 9 seconds Importantly, the underlying demand environment and operational momentum remain strong supported by a healthy order book and sustained opportunities 3:17 3 minutes, 17 seconds across domestic as well as export markets. 3:22 3 minutes, 22 seconds Our outstanding order book stands at rupees 1,294 crores representing 3.1 times of 3:29 3 minutes, 29 seconds financial year 25 revenue and providing strong medium-term visibility during the quarter. Consistent execution 3:38 3 minutes, 38 seconds strengthened our positioning and enabled us to secure larger and strategically significant contracts from the Ministry 3:45 3 minutes, 45 seconds of Defense, domestic defense layers and international customers. In October, we secured a major order worth rupees 429 3:54 3 minutes, 54 seconds crores from the Ministry of Defense, government of India for the supply of shafts and flares to the Indian Air 4:01 4 minutes, 1 second Force. This reinforces our leadership in counter major systems and reflects continued confidence in our technological capability. 4:14 4 minutes, 14 seconds We also strengthened our order inflow during quarter 3 of I26 through contracts from international entities 4:21 4 minutes, 21 seconds for defense products and commercial explosives along with additional countermeasure orders from the ministry of defense. These projects are 4:29 4 minutes, 29 seconds progressing across various stages of execution and are expected to support revenue momentum in the coming quarters. 4:36 4 minutes, 36 seconds occupies a unique strategic position as the only Indian company qualified to manufacture countermeasures and as a key 4:43 4 minutes, 43 seconds exporter of fully assembled rocket motors. Our portfolio of warheads, mines and ammunition further strengthens our 4:50 4 minutes, 50 seconds role in advancing India's indigenization objectives with continued policy emphasis on domestic defense m 4:58 4 minutes, 58 seconds manufacturing and import substit substitution. The structural growth outlook remains strong. Our focus is 5:06 5 minutes, 6 seconds clear. We will drive execution excellence, deepen technological capability, scale capacity prudently and 5:13 5 minutes, 13 seconds expand our global presence. We remain confident in our growth trajectory and committed to delivering sustainable value of all stakeholder. Thank you. 5:25 5 minutes, 25 seconds Now I request Mr. Vijay Kumar, our CFO to share the financial performance. Thank you sir. Good morning everyone. 5:33 5 minutes, 33 seconds The result presentations for the quarted December 31st 2025 has been uploaded on the stock exchanges and on the company's website. I believe you may have gone 5:42 5 minutes, 42 seconds through the same. The revenue from operations for Q3 FI26 stands at 81.4 crores. Our operating profit for Q3 FI26 5:50 5 minutes, 50 seconds stands at 11.6 crores. The operating margin for the quarter stands at 14.3%. We reported a net profit of 6 crores. 5:58 5 minutes, 58 seconds The back margin for the quarter stands at 7.4%. 6:02 6 minutes, 2 seconds The revenue from operations for 9 months FI26 stands at 299.1 crores. Our operating profit for 9 months FI26 6:10 6 minutes, 10 seconds stands at 39.1 crores. The operating margin for the quarter stands at 13.1%. We reported a net profit of 39.2 crores. 6:19 6 minutes, 19 seconds The pat margin for the quarter stands at 13.1%. 6:22 6 minutes, 22 seconds The decline is primarily attributable to the high base effect arising from the elevated shafts and plates dispatches in the corresponding period last year with 6:31 6 minutes, 31 seconds the execution timing affecting year on year comparability. Now coming to the order book the company's current order 6:38 6 minutes, 38 seconds book stands at 1,294.6 crores out of which is different segment order is majority of 1,191 crores which is equal to 92% of the total order book. 6:48 6 minutes, 48 seconds Explosive segment stands at 51.8 8 crores which is equal to 4% of the total order book and service segment which is operation and maintenance service 6:56 6 minutes, 56 seconds segment stands at 51.8 crores which is also equal to for 4% of the total order book. The order book shows a solid and strong growth towards the coming years. 7:06 7 minutes, 6 seconds We are very much content that with our continued execution run rate in the forthcoming quarters we'll be continuing with the growth budget. With this we'll 7:15 7 minutes, 15 seconds now open the floor for questions and answers. Thank you. 7:22 7 minutes, 22 seconds Thank you. 7:26 7 minutes, 26 seconds Ladies and gentlemen, we will now begin with the question and answer session. 7:29 7 minutes, 29 seconds Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question Q, you may 7:37 7 minutes, 37 seconds press star N2. Participants are request to use handsets while asking a question. 7:43 7 minutes, 43 seconds Ladies and gentlemen will wait for a moment while the question Q assembles. 7:47 7 minutes, 47 seconds Our first question come from the line of Niraj Mansena from White Pine Investment Management. Please go ahead. 7:59 7 minutes, 59 seconds Yeah, thank you for the opportunity. I have only one question. Uh if you see your order book is 11 191 crores versus 8:06 8 minutes, 6 seconds last quarter um September quarter 1167 crores. It implies an increase of 85 8:13 8 minutes, 13 seconds crores in uh no net orders after registering for the uh revenues because 8:20 8 minutes, 20 seconds revenue reported for the defense is only 61 crores. Now uh but when you reported 8:28 8 minutes, 28 seconds in the press releases we reported an inflow of 519 crores on shares and flares three orders we have inputed till 8:36 8 minutes, 36 seconds now. So what is the discrepancy like has the orders of uh so the the discrepancy 8:42 8 minutes, 42 seconds is almost uh you should have added 519 crores but it seems that you have added 85 crores only. So uh has the uh some 8:52 8 minutes, 52 seconds order been cancelled to the extent of 100 plus crores? No that 430 crores has come in October. 9:00 9 minutes So in the last call we have added that also and gave the total number. 9:07 9 minutes, 7 seconds Okay. So you but that was a quarterly presentation. So you added that in the last quarter and Yeah. Yeah. Yeah. Because that time by the time we got the order as on that date. 9:16 9 minutes, 16 seconds So so whatever orders right now you are putting the presentation it is as 9:24 9 minutes, 24 seconds no it is as on 15th February or so is it right? Or is it as on December? Yeah, as on date that date. 9:33 9 minutes, 33 seconds Okay. Okay. Got it. Got it. Yeah. Thank you. I'll come back. Thank you. 9:40 9 minutes, 40 seconds Next question comes from the line of Vun Jen from Dalith Capital. Please go ahead. 9:45 9 minutes, 45 seconds Uh yeah. Hi. Uh good morning sir. So I have a couple of questions. So uh first is uh sir, what is the status of this uh explosive RDX HMX expansion at Katapali? 9:56 9 minutes, 56 seconds So will it be completed by the end of this financial year and do we expect uh like 100 to 200 cr extra revenue from that in FI27? 10:08 10 minutes, 8 seconds No the fuel construction and work and all those are completed the equipment installation and direction is going on. 10:16 10 minutes, 16 seconds So we expect this to complete and then come into productions in the first quarter of next financial year. 10:24 10 minutes, 24 seconds And sir, what will be the revenue from this expansion in FI 27? 10:30 10 minutes, 30 seconds Yeah, that being the initial few quarters it will be on lower side because we'll be slowly operating it right. So we are 10:40 10 minutes, 40 seconds expecting almost in the next financial year contribution of much it's around. 10:51 10 minutes, 51 seconds Yeah it's the turnover contribution will come to around 150 to 200 crores in the next financial year. 10:59 10 minutes, 59 seconds Okay. And sir of this sh and flares order which we received in October. So sir uh will be uh how much of that 11:08 11 minutes, 8 seconds orders contri contribution will come in uh FYI 27? 11:14 11 minutes, 14 seconds Yeah almost 50% of that order has to be executed in the one year's time and we have to complete it by next year. 11:28 11 minutes, 28 seconds So sir in that case that 430 from that and you know 150 from that so only these 11:35 11 minutes, 35 seconds two orders will give you close to 550 600 kores of revenue in FI27 uh if I'm 11:42 11 minutes, 42 seconds understanding it correctly doing some in the current current financial year and the part will go to the next financial year it's not the 11:50 11 minutes, 50 seconds entire order will go to next financial year uh Okay. And sir on this year 26 12:00 12 minutes guidance 550 but we are not able to hear you. 12:12 12 minutes, 12 seconds I'm sorry sir but your voice is breaking. 12:14 12 minutes, 14 seconds So sir I was saying that last quarter we revised our guidance down to 500 to 550 CR for FI26. Is that number still possible? 12:26 12 minutes, 26 seconds Yeah, now the year is coming to closer to end and we have stocks which need to be inspected and delivered to MOD. So if 12:34 12 minutes, 34 seconds the if the inspections are completed and then delivery is completed. Yes. If it gets into then it'll go to the next quarter. 12:45 12 minutes, 45 seconds Uh okay sir. Okay. Uh that's I'll come back in the queue. Yeah. 12:54 12 minutes, 54 seconds Thank you. 12:57 12 minutes, 57 seconds Next question come from the line of Han Shuhya from Sukrit Investment Private Limited. Please go ahead. 13:05 13 minutes, 5 seconds Hello sir, thank you for taking my question. Uh my question was that in our second last page of a presentation uh we have mentioned anti-personnel and 13:14 13 minutes, 14 seconds anti-armored vehicle mines as a product offering. So sir could you please throw some light on it? 13:21 13 minutes, 21 seconds Yeah, we already we got an supply order and then we are executing that. We've already done almost 50% of it. 13:31 13 minutes, 31 seconds Now the balance now it is in the deliveries and then inspections. 13:37 13 minutes, 37 seconds So sir is it uh related to project tando because uh as per report so solar industry is developing an anti-tank 13:43 13 minutes, 43 seconds influence mine. So sir how are we lining up against it sir? So we are working with DRDO technology anti-tank 13:52 13 minutes, 52 seconds intelligent mine DRDO has transferred as technology we are on that but that product we are yet to get supply order 14:00 14 minutes that's right dot is completed we are waiting for the supply from army okay so because the RFP is out for 14:08 14 minutes, 8 seconds project so that brings up this question so no we are not doing it's Okay, 14:21 14 minutes, 21 seconds thank you. 14:40 14 minutes, 40 seconds Our next question come from the line of Paris Kulkarni from Ignite Capital. 14:50 14 minutes, 50 seconds Please go ahead. 14:52 14 minutes, 52 seconds Yeah. So my first question pertains to uh the uh order inflows in uh second 14:58 14 minutes, 58 seconds quarter uh conference guided that uh we would be expecting additional 300 cr uh 15:05 15 minutes, 5 seconds order inflow for the next uh for the remaining part of this year. However, when I look at it on a run rate basis, 15:14 15 minutes, 14 seconds uh we don't seem to be uh uh you know in Q3 uh not even half of that uh guidance 15:23 15 minutes, 23 seconds uh is being met. So could you highlight uh you know what led to uh the lower order booking in Q3? 15:36 15 minutes, 36 seconds The order book is I couldn't understand on what basis you said the lowering of the order book as the order book is 1290 crores. 15:46 15 minutes, 46 seconds Yeah. Yeah. 15:49 15 minutes, 49 seconds We got a new order of 430 crores in October. 15:52 15 minutes, 52 seconds Yeah. See as we keep on executing the market it comes down and as the new orders get added it goes up. So we are able to maintain a healthy order book. 16:02 16 minutes, 2 seconds No, we are actually operating at less than one bill to book as for my understanding. 16:09 16 minutes, 9 seconds Oh, it it is 1294. It is 2 years. 16:15 16 minutes, 15 seconds Okay. Secondly, on the gross margin front, we have had a sequential decline 16:21 16 minutes, 21 seconds of almost um 150 bibs. So uh can you put some light on that as to uh why it has 16:29 16 minutes, 29 seconds happened uh and uh was was it on account of some change in revenue mix or uh 16:35 16 minutes, 35 seconds input in raw material prices earlier we had this MOD order where we 16:46 16 minutes, 46 seconds had LDS and all these things because of that that was on the lower side otherwise we are targeting 15 to 20% contributor. 16:56 16 minutes, 56 seconds Okay, got it. And lastly on the uh revenue front of see uh to achieve the 17:04 17 minutes, 4 seconds uh yearly guidance we need to um you know almost do 3x of uh 3 to 4x of what we did in uh Q3 17:14 17 minutes, 14 seconds uh the revenue for Q4. So uh do we expect any changing guidance uh given 17:21 17 minutes, 21 seconds that u the orders which you mentioned are still not uh getting executed or um 17:29 17 minutes, 29 seconds are not getting uh inspected. So uh is there any definitive timeline as to uh the orders getting inspected from the 17:38 17 minutes, 38 seconds government and uh getting executed because what I understand is your peers have actually um had a strong quarter in the defense segment. 17:49 17 minutes, 49 seconds So could you throw some light on that? 17:55 17 minutes, 55 seconds Yeah, see the third quarter whatever deliveries have to be made it has already started and uh from the stocks 18:05 18 minutes, 5 seconds see the defense mod process is any product before you dispatch you have to offer for pre-dispatch inspection. So we 18:14 18 minutes, 14 seconds have uh already submitted to them for conducting pre-ispatch inspection and as per the team arrival and then inspection 18:22 18 minutes, 22 seconds it depends if we can deliver them before 31st of March they appear in this quarter otherwise we'll go to the next quarter. We are trying our best to get 18:31 18 minutes, 31 seconds them for forward rather than pushing them. Okay, got it. I'll join back. 18:42 18 minutes, 42 seconds Thank you. Our next question comes from the line of Suk from eyesight private. 18:50 18 minutes, 50 seconds Good morning to the team. Uh I have two forwardlooking questions. My first question is as premier explosives expand 18:57 18 minutes, 57 seconds into the defense and aerospace. What steps will you take over the next uh uh 19:04 19 minutes, 4 seconds one to two years or you know in the short term one to two quarters to mitigate risk from defense uh 19:11 19 minutes, 11 seconds procurement delays and ensure uh steady execution in long cycles contracts. 19:17 19 minutes, 17 seconds That's my first question. I'll ask my second question. 19:21 19 minutes, 21 seconds Yeah, this is uh see as we explained earlier also we are building our we have bouquet of products and we are 19:28 19 minutes, 28 seconds increasing the bouquet adding more products like we added or few years back if you remember we were our 19:36 19 minutes, 36 seconds concentration was producing propellants and then rocket motors for Indian agencies and today we are already 19:45 19 minutes, 45 seconds exporting rocket motors and uh we are designing and all those Next step we added is the counter measures. Counter 19:53 19 minutes, 53 seconds measures we are the number one in the country. We are the only source for counter measures. Whatever orders are we are executing from that. The third one 20:01 20 minutes, 1 second is the mines. We have started delivering in this financially as the mines land mines and anti-personal minds we are and 20:09 20 minutes, 9 seconds the armored vehicle mines and all those we are yet to start delivering. 20:14 20 minutes, 14 seconds Antersonal minds we are already delivering. Then next step comes is the ammunition. Ammunition yes we have 20:23 20 minutes, 23 seconds conducted trials with ARB technology and all those again it is in the process of RFP. Once we get into we'll be entering 20:30 20 minutes, 30 seconds the complete medium caliber ammunition line of business. So we are going on adding within the defense and 20:39 20 minutes, 39 seconds then aerospace industry there are multiple products. We are going on adding one after the other and we are also expanding our uh capacity of 20:48 20 minutes, 48 seconds producing tactical rocket motors by adding another facility. 20:55 20 minutes, 55 seconds Thank you. My second question to Mr. 20:57 20 minutes, 57 seconds Kumar is uh looking ahead, how will you design premier financial discipline to handle raw material cost volatility and 21:06 21 minutes, 6 seconds working capital tied to defense contracts while still protecting margins and delivering a predictable shareholder return. 21:20 21 minutes, 20 seconds We have lines of credit from all the banks. So we do not foresee any working app issue. 21:27 21 minutes, 27 seconds So depending on the product and project we plan working accordingly and also the margins are also protected when we 21:34 21 minutes, 34 seconds accept the order and we uh every export order we execute or we take we are 21:41 21 minutes, 41 seconds including a like price escalation class from year on year 21:48 21 minutes, 48 seconds so that the price increase in the raw material is protected. 21:54 21 minutes, 54 seconds Okay, thank you and best wishes. Yeah, thank you. Thank you. 22:03 22 minutes, 3 seconds Our next question come from the line of SC Gupta from an individual investor. Please go ahead. 22:11 22 minutes, 11 seconds Good morning. I would like to know what is the breakup of exports and domestic sales in the current quarter and 9 months. 22:28 22 minutes, 28 seconds 9 months export is about 40 codes compared to total year exports of about 78 22:36 22 minutes, 36 seconds and current quarter current quarter 40 14 previous quarter third mean December quarter 22:44 22 minutes, 44 seconds and what is and what is the break up of export and domestic orders as on 23:06 23 minutes, 6 seconds Export is about uh 450 crores. Balance is domestic. 23:11 23 minutes, 11 seconds Balance is domestic. See all the export order which you have given on BSC normally mention supply period of 12 months. Maximum 12 months. 23:22 23 minutes, 22 seconds Yeah. 12 to 24 months some of them. 23:27 23 minutes, 27 seconds Okay. Because what I observed is most of them are within 12 months. So in that case if you have to deliver these in 12 months. So current year you will be 23:35 23 minutes, 35 seconds exporting at least 400 cr next year that is 26 27. 23:41 23 minutes, 41 seconds Here you have to note one thing is export need export licenses for this. 23:48 23 minutes, 48 seconds Yeah. So the date the the clock starts from the day of receiving the export license. 23:57 23 minutes, 57 seconds Okay. It is not from the date of order. 23:59 23 minutes, 59 seconds It is from the date of receiving the export license. 24:02 24 minutes, 2 seconds Yeah. Because they all know we we tell them in the beginning itself we can supply only once we get the export license which take anything 3 to 5 months. 24:11 24 minutes, 11 seconds Okay. May I know as of today how much export license we have to export? 24:19 24 minutes, 19 seconds they they're in different stages. Maybe uh in the next 12 we can update. 24:25 24 minutes, 25 seconds So normally can we expect that these 450 will be executed maximum within one and a half year to two years? Yeah, that 24:32 24 minutes, 32 seconds that yeah that assumption we can take that assumptions may be okay and secondly see with respect to the turnover we started the year guidance of 24:41 24 minutes, 41 seconds 600 K now then we have come to guidance of 500 to 550 in the last quarter 24:49 24 minutes, 49 seconds and now also this 500 to 550 also looks little bit shaky depending upon the inspections 24:57 24 minutes, 57 seconds but does this inspection delays somewhere And what I'm trying to say is that previous inspection get delayed and 25:05 25 minutes, 5 seconds it transform to next quarter. So it becomes a normal lead time in delivering the order. 25:11 25 minutes, 11 seconds So considering that are we sure that this year we will be able to achieve at least around 550? 25:19 25 minutes, 19 seconds We are targeting 500 crores because you know that we had accident in the beginning of the year because of which 25:27 25 minutes, 27 seconds our large rocket motors facility got affected. 25:31 25 minutes, 31 seconds So that time it will be told around 20 to 30 crores business will be affected at that time. Okay. 25:37 25 minutes, 37 seconds So yeah and also you know the geopolitical conditions yeah because of that the some of the 25:44 25 minutes, 44 seconds inputs which you are importing got delayed. 25:47 25 minutes, 47 seconds Okay. So these have affected our uh targets and uh that's what happened. So we are hoping that right now current 25:55 25 minutes, 55 seconds year or coming year I said problems are not foreseen. So we are hoping that we'll cover up that 26:03 26 minutes, 3 seconds we will achieve that and secondly are we expecting any LD on this? 26:09 26 minutes, 9 seconds Yeah, the ND clauses are there but when we submit a detailed all the reasons for this. 26:16 26 minutes, 16 seconds Yeah. 26:18 26 minutes, 18 seconds In many cases they have considered favor of LD. So any such things also there we are approaching them. 26:25 26 minutes, 25 seconds And one final question can we assume that next year we can achieve a turnover of 7 to 800 cr because of these delays whichever is postponed in the current year. 26:35 26 minutes, 35 seconds Yeah, because of our experience on the current year, we are a little cautious in taking that one. We are expecting 500 26:42 26 minutes, 42 seconds to 600 for now next year. Uh that is a conservative estimate as on date based on the Yeah. 26:51 26 minutes, 51 seconds Thank you. Thanks a lot. Thank you. 26:58 26 minutes, 58 seconds Ladies and gentlemen, anyone who wishes to ask a question and one And next question come from the line of 27:06 27 minutes, 6 seconds Niraj Mansinka. A follow-up question from White Pine Investment Management. Please go ahead. 27:12 27 minutes, 12 seconds Wanted to know uh uh we are present in a QRM. Uh uh yes. 27:21 27 minutes, 21 seconds And so what is the general uh percentage share of QRM orders that we should receive? 27:31 27 minutes, 31 seconds The KRM order is yet to be received. 27:34 27 minutes, 34 seconds Okay. We are also hearing about KRM but right now we have no order on K. If any order comes we are the supplier. The 27:42 27 minutes, 42 seconds propent is to be supplied by only premier. 27:44 27 minutes, 44 seconds So that I understand that say whatever is the percentage the main uh supplier gets how much percentage of that would 27:52 27 minutes, 52 seconds you be getting generally on a range which you can give us. 27:56 27 minutes, 56 seconds I told you earlier calls also it is somewhere around 10 to 15% is the percentage contribution of propellent 28:05 28 minutes, 5 seconds bers and other explosives it varies but motors to motors okay are you supplying uh full rocket 28:14 28 minutes, 14 seconds motor or only the propellent for only propane casting only the propane no full motors 28:22 28 minutes, 22 seconds yeah not full motors Okay. So being assembled by VDL VDL places for propane 28:30 28 minutes, 30 seconds we supply them with propellent cast then they do the full full motor assembly and integration. 28:36 28 minutes, 36 seconds Got it sir. So that's one. So second question is on the uh count uh counter measured orders that we received earlier 28:45 28 minutes, 45 seconds uh uh which is u um in 2023 July. So that has been uh how much is left on 28:52 28 minutes, 52 seconds that part in terms of unexecuted portion 28:58 28 minutes, 58 seconds around 110 cr is left over by this year and the shaft 29:06 29 minutes, 6 seconds shaft you have completed the shaft shaft part of it. So some quantity of flint is left over that is around 120 crores 29:15 29 minutes, 15 seconds which is 112 which we are hoping that in the first quarter we'll complete that 29:23 29 minutes, 23 seconds and the order which is yet to be uh checked and booked on revenues are they 29:29 29 minutes, 29 seconds uh included in that 110 crores includes that or excludes that? No courses whatever we have delivered 29:39 29 minutes, 39 seconds what the numbers and stocks are not in that that is additional which we are thinking that in the next month or in 29:47 29 minutes, 47 seconds the first quarter of the next year we'll be able to pay it and how much is the stock stock which is 29:53 29 minutes, 53 seconds to be uh pending to be uh verified by the the defense side 30:02 30 minutes, 2 seconds 30 around 30 crores work material is with us as one and some more is by plane. Yeah. 30:10 30 minutes, 10 seconds So, so is it right that then the counter measure revenues to be booked on the earlier order is 140 crores. 110 is yet 30:18 30 minutes, 18 seconds to be executed as as on date outstanding is about 110 30:25 30 minutes, 25 seconds that includes this cost everything all includes. 30:30 30 minutes, 30 seconds Okay, got it sir. So that's one and so on the LD numbers of counter measures uh you said that in the past that the 30:37 30 minutes, 37 seconds reversal of margins can come after only you supply the entire order. So what is the status of that? 30:46 30 minutes, 46 seconds Yeah, like we told now only the flare part 30 because sorry 60 crores of 30:52 30 minutes, 52 seconds flares are to be supplied and counter with this shafts we have already approached MOD for considering 31:01 31 minutes, 1 second of LD and flares will approach once we complete this. 31:05 31 minutes, 5 seconds So we have approached for the shafts but yet the decision is yet to be is it right? 31:12 31 minutes, 12 seconds Government it has to go from various levels it will take some time. Okay. 31:17 31 minutes, 17 seconds Okay. Got it. Uh that's the third. So thank uh can you tell something about the RFP on the mine side 31:25 31 minutes, 25 seconds RFP on mines? We have some articles in our hands. We are supplying activity in the other. It's no more in RFP stage. 31:32 31 minutes, 32 seconds Other mines. Yes. The anti-armored vehicle intelligent mine which are they are in the we are waiting for the RFP to come. 31:44 31 minutes, 44 seconds How large that they can be the the value 31:53 31 minutes, 53 seconds we have to supply around 30 particular of mine future and something future you are asking no so I'm asking of the upcoming mines 32:01 32 minutes, 1 second that are going to come how much is how large can those mine are at peace we could be 32:08 32 minutes, 8 seconds it is going to be large from our estimate but I can't tell you the figures Yes, because the mines are needed by army all along the all along 32:18 32 minutes, 18 seconds our border when there are tensions they have to plant. So right now the the demand will remain continuously 32:26 32 minutes, 26 seconds for the anti-personnel and also for anti. 32:31 32 minutes, 31 seconds Okay. Okay. So great. Thank you. I'll come back. Yes. 32:38 32 minutes, 38 seconds Thank you. Our next question comes from the line of Vun Jen from Dorat Capital. Please go ahead. 32:45 32 minutes, 45 seconds Uh yeah, just a followup. Uh sir, what is your capex guidance for FI27 next year and 28 33:04 33 minutes, 4 seconds next financial year? Next year and next year. 33:09 33 minutes, 9 seconds Yeah, around 60 clubs is the cafe for Yeah. 33:14 33 minutes, 14 seconds PDK and PDK together and an any update on the Orisa capex uh 33:24 33 minutes, 24 seconds uh since we have a board permission to raise funds. What is the status there? 33:29 33 minutes, 29 seconds Orisa land is still not finalized because we happen to go and then P and the land. So it's more of hilly and 33:37 33 minutes, 37 seconds forest and all those. In the meantime, the Andra government has cleared our 33:44 33 minutes, 44 seconds application for land in Andra. So that appears to be more uh closer than Orisa. 33:54 33 minutes, 54 seconds A pro letter is so that that also will add to our capex plan once the land is allotted to us. 34:04 34 minutes, 4 seconds And so sir this 60 k which you said for SI 27 what is the break up of that 34:11 34 minutes, 11 seconds we have expansion plant in uh Kipali plant and also at VDK plant 34:19 34 minutes, 19 seconds additional capacity of propent manufacturing and casting and also uh integration of rocket motor integration. 34:27 34 minutes, 27 seconds So all those areas and also for RBX and HMX plant. So all these activities we 34:34 34 minutes, 34 seconds are expecting a 60 crores of capex in the current financial year sir uh for this RDX and HMS capacity I 34:43 34 minutes, 43 seconds think the current round of capex you are taking it from 100 10 to 600 or so. So uh beyond that also you are taking in FI27 if if my numbers are correct. 34:55 34 minutes, 55 seconds Yeah, capex wise I I don't think we will do in PDK that will be finishing in the 35:03 35 minutes, 3 seconds current year and probably year FX 26 first quarter or two so after that I think we'll be full there will be no 35:12 35 minutes, 12 seconds possibility of adding anything because of the land constraint so we have to go to the new place 35:20 35 minutes, 20 seconds okay and and sir any uh any like capex plans for FI28 have you chocked out No, not yet. 35:26 35 minutes, 26 seconds No, not yet. We have plans but I don't think uh the land is alerted. 35:30 35 minutes, 30 seconds Yeah, once the land is allotted we otherwise now we are at the stage of project report submission for allocation of land and other things. 35:40 35 minutes, 40 seconds Okay. Okay sir. And this my last question is that sir for FI27 I think your uh majority of revenue will come from one the shafts and clear orders and 35:49 35 minutes, 49 seconds uh uh secondly the HMX and RDX sales which will be 150 K or so. So next year the IIDA margin console I evida margin 35:58 35 minutes, 58 seconds should be close to 20 21 and 22% in that range right that also is there and we have other 36:07 36 minutes, 7 seconds products also so it can be anywhere between the 15 to 20%. based on the 36:13 36 minutes, 13 seconds product mix what we supply and because majority of it will be will 36:21 36 minutes, 21 seconds be coming from these products and they are very you know higher margin products and especially with RDX and HMX they have a very high realization presently 36:28 36 minutes, 28 seconds so that's why I was asking that it should be on the higher side right we are hoping that it will be higher 36:37 36 minutes, 37 seconds side we are also hoping that based on the present orders and also yeah product mix. 36:50 36 minutes, 50 seconds Okay sir that's all from me. Thank you and all the best. Yes. 36:55 36 minutes, 55 seconds Thank you ladies and gentlemen. Anyone who wishes to ask a question may we press star N1 on your touchstone telephone. 37:05 37 minutes, 5 seconds Our next question comes from the line of Deepak Carba and individual investor. Please go ahead. Hello. 37:13 37 minutes, 13 seconds Yes, I'm able sir. Yeah. 37:17 37 minutes, 17 seconds Thank you for the opportunity. My first question is regarding our cash conversion cycle has improved significantly over 300 days in past few 37:26 37 minutes, 26 seconds years to around 90 days currently like uh going forward on sustainable basis. 37:32 37 minutes, 32 seconds Where do you uh expect the cash cycle to stabilize? 37:39 37 minutes, 39 seconds We are trying to maintain this actually that depends on the product if you go with the ministry of defense and 37:45 37 minutes, 45 seconds other things. So that takes uh little time to get the fund. So rest of the people we have a fixed timeline. So 37:54 37 minutes, 54 seconds anyway we are trying to maintain the same. Okay. On uh like additionally on the working capital side how much 38:02 38 minutes, 2 seconds working capital would be required to execute the current order book of approximately 1 1300 KS. 38:10 38 minutes, 10 seconds We have sufficient working capital lines. lot of banks are ready to give further working capital also on the need basis we are taking it that's why our 38:20 38 minutes, 20 seconds finance cost is also lower wherever it is required we are taking it otherwise we are not we are utilizing it when the advances in the customers and other 38:28 38 minutes, 28 seconds okay and uh are we expecting any sustainable order for bulk explosives uh any order we expecting to receive from 38:37 38 minutes, 37 seconds coal India coal India the prices are so low. 38:44 38 minutes, 44 seconds So, so unless we get our price or a reasonable price which at least breaks even we are not entering into that. So, 38:52 38 minutes, 52 seconds right now our we are not supplying any bulk explosives to coal India. Some accessories are being supplied. We are 38:59 38 minutes, 59 seconds right now uh servicing Simani always in two mines with the bulk explosives and all those coal India plants are understood now. 39:08 39 minutes, 8 seconds Okay sir. Understood sir. Yes. Thank you sir. Uh all the best for further quarter. Thank you. Thank you. 39:19 39 minutes, 19 seconds Thank you. 39:21 39 minutes, 21 seconds Ladies and gentlemen, anyone who wishes to ask a question may press star and one on your touch on telephone. 39:31 39 minutes, 31 seconds As there are no further question from the participant, I would like to hand the conference over to Mr. TV Chi for the closing comments. Thank you and over to you sir. 39:40 39 minutes, 40 seconds Thank you very much Mr. Gandhi. 39:43 39 minutes, 43 seconds Thank you very much all of you for supporting us and time to time. This 39:50 39 minutes, 50 seconds conference call could not be conducted immediately after the board meeting because I was traveling for land and other things to Andra government. So we 39:59 39 minutes, 59 seconds will inform all of you uh whenever the land allotment is completed. Thank you. Thank you. 40:06 40 minutes, 6 seconds Thank thank you so much sir. Ladies and gentlemen, on behalf of Premier Explosive Limited, that conclude this conference. Thank you for joining us and you may now disconnect your lights.