Shilchar Technologies Ltd — Q4 FY26

Shilchar Technologies Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=RgYEAAArCbY Published: 8 days ago

0:01 1 second Ladies and gentlemen, good day and welcome to the future technologies Q4 26 earnings call hosted by Amendas Park. As 0:11 11 seconds a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask question after the presentation 0:19 19 seconds concludes. Should you need assistance during the conference call, please sign an operator by pressing star then zero on a touchstone phone. I now hand the 0:28 28 seconds conference over to Mr. Al Jasha, chairman and managing director from such technologies. Thank you and over to you sir. 0:39 39 seconds Good evening everyone and thank you for joining us today. Uh before we open the floor for questions, I would like to 0:46 46 seconds walk you through our performance for Q4 and the full year FI23 and share some update on our operational and financial performance. 0:57 57 seconds For the full year 26, Sha Technologies delivered revenue from operation of 1:03 1 minute, 3 seconds rupees 652 crores reflecting around 5% growth year on year with AITA of rupees 190 crores and an AITA margin of 29%. 1:15 1 minute, 15 seconds Profit after tax for the year stood at rupees 158 crores up 8% on yearon-year basis with an EPS of rupees 138. 1:27 1 minute, 27 seconds These numbers while healthy in absolute term could have been notably better as the year closed with a weaker than 1:34 1 minute, 34 seconds expected Q4 driven by two distinct and external factor that I will address shortly. 1:41 1 minute, 41 seconds On a five-year basis, Shar's compounding story remains strong with revenue AITA 1:47 1 minute, 47 seconds and PAT growing at CAGS of 38% 77% and 83% respectively. 1:55 1 minute, 55 seconds Turning to Q4 specifically revenue from operation came in at 152 crores with AITA margin at 21% and P at rupees 28 crores. 2:07 2 minutes, 7 seconds Two developments waited on Q4 dispatches. First, the uncertainty around US carry policy in the preceding 2:14 2 minutes, 14 seconds quarters. Moderated order intake from US customers specifically in Q3. While order inflows recovered through Q4, 2:24 2 minutes, 24 seconds dispatches remain slow given the lower order intake in preceding quarter and the interim policy uncertainty at the time. 2:32 2 minutes, 32 seconds With subsequent US tariff policy amendments and a firm demand outlook from US customers, both order intake and 2:39 2 minutes, 39 seconds deliveries have picked up notably in Q1 financial year 27. 2:46 2 minutes, 46 seconds Second, a significant volume of shipment scheduled for delivery to Middle East customers in March 26 could not be 2:54 2 minutes, 54 seconds dispatched due to the crisis in West Asia and the resulting logistics disruptions. 3:00 3 minutes These shipments have been deferred and not cancelled. Dispatches to the region resumed in April and the situation has improved considerably since then. 3:13 3 minutes, 13 seconds Both of these factors were temporarily in nature and we expect Sha to resume its growth trajectory from the coming quarter. 3:22 3 minutes, 22 seconds This will be supported by the structured demand across power transmission, distribution and renewable energy. 3:29 3 minutes, 29 seconds On the domestic front, demand has remained firm. India commissioned 55 gawatt of renewable energy capacity in 3:37 3 minutes, 37 seconds year 26. A record high and this sustained momentum continues to underpin strong order inflows in our domestic renewable consumer business. 3:48 3 minutes, 48 seconds Coming to our balance sheet, Shila remains debt free with cash and cash equivalents of rupees 246 crores at the 3:56 3 minutes, 56 seconds end of financial year 26 a part of which will be used to financing our ongoing capex operating 4:04 4 minutes, 4 seconds cash flow for the year stood at rupes 192 crores on our capex project our gawasad expansion number three which 4:13 4 minutes, 13 seconds will add 6,500 MBA and take our Total installed capacity to 14,000 MBA remains on track for commissioning in April 27. 4:24 4 minutes, 24 seconds Civil foundation work for the site is completed. EB erection and utility infrastructure work is currently in 4:32 4 minutes, 32 seconds progress and all major production equipment has been ordered. The capital expenditure of approximately 120 cr is 4:40 4 minutes, 40 seconds being funded entirely through internal acruals for financial year 27. We expect to run 4:48 4 minutes, 48 seconds our existing 7,500 MBA capacity at almost full utilization and the new facility will drive the next leg of growth from financial year 2728 onwards. 5:01 5 minutes, 1 second Our business outlook remains strong with order visibility for financial year 27 of approximately rupees 800 cr supported 5:10 5 minutes, 10 seconds by robust inquiries from both domestic and export customers. 5:14 5 minutes, 14 seconds The global transformer demand remains favorable. Domestically investments in grid infrastructure 5:21 5 minutes, 21 seconds TND capacity and the ongoing beat of renewable provide strong visibility. 5:29 5 minutes, 29 seconds With this remarks, I would like to open the floor for the questions. 5:35 5 minutes, 35 seconds Thank you very much. We will now begin the question answer session. Anyone who wishes to ask a question may press star 5:41 5 minutes, 41 seconds N1 on your touchstone telephone. If you wish to remove yourself from the question queue, you may press star N2. 5:49 5 minutes, 49 seconds Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question crew assemble. A 5:58 5 minutes, 58 seconds reminder to all the participants, please restrict yourself to two per question. 6:10 6 minutes, 10 seconds We have first question from the line of IUSD from service capital. Please go ahead sir. 6:18 6 minutes, 18 seconds Yeah. Hi, thank you for the opportunity. 6:20 6 minutes, 20 seconds uh just just trying to understand uh on the gross margin compression could you just throw some light in terms of which 6:28 6 minutes, 28 seconds aspect of our R&B market basket has taken a hit because clearly we have gross margin compression and just trying to understand which part of the R& market basket has taken a hit. 6:38 6 minutes, 38 seconds Yeah. So in Q4 basically you know our export is considerably less. Main reason for that is that you know we could not 6:46 6 minutes, 46 seconds ship out the transformers in March due to this you know middle east crisis and that has you know reduced our export 6:55 6 minutes, 55 seconds compared to the domestic and that has changed the ratio of our raw material consumption and secondly I mean all the 7:03 7 minutes, 3 seconds raw material prices have gone up but in month of March specifically we were hit by the increase in oil price. So these 7:10 7 minutes, 10 seconds are the two main factor which has created problem in I mean which has increased the consumption of raw material. 7:19 7 minutes, 19 seconds Understood. And just a follow up given the nature of the inflation market as well. Are we taking any price hikes and 7:27 7 minutes, 27 seconds have you had any dialogue with your customers in terms of accepting these prices any just to give us an understanding of what is going on up front? 7:35 7 minutes, 35 seconds Yes. Yes. So we have approached to almost all customers for the price increase revisioning price and active 7:42 7 minutes, 42 seconds you know dialogues are going on. I mean some of the customers have already agreed for the price increase and with some customers we are still under 7:51 7 minutes, 51 seconds discussion. So and the good thing is that this price increase is known to each and everyone. Even our customer 7:58 7 minutes, 58 seconds understand the you know increase in raw material cost. So I think uh slowly slowly we are 8:06 8 minutes, 6 seconds able to get the price increase from all our customers. 8:12 8 minutes, 12 seconds Understood sir and also so when do you see sir uh Mr. Sorry for the interruption uh sorry for interruption please rejoin the queue for more for 8:20 8 minutes, 20 seconds followup question. Sure, please rejoin us. Okay, we have next question from the line of 8:29 8 minutes, 29 seconds Silic Ma from Indo Alps Wealth GM PH. Please go ahead sir. 8:39 8 minutes, 39 seconds Am I audible? I just wanted to understand a little bit about uh how the first quarter of the current year will 8:47 8 minutes, 47 seconds fare. So broadly speaking, we have lost 80 90 crores of sales in the quarter 4 because of this Middle Eastern crisis. 8:58 8 minutes, 58 seconds What proportion of this would be added additionally to the Q1 or Q2 sales 9:07 9 minutes, 7 seconds expected? Yeah. So you know the like I said in my opening remark the shipping has already resumed and we have already 9:16 9 minutes, 16 seconds started shipping out transformers which we were not able to ship in month of March and slowly slowly that situation 9:23 9 minutes, 23 seconds is you know becoming normal and we have a very strong order book at as of now we 9:31 9 minutes, 31 seconds have an order book of almost 452 cr. Uh yes we are discussing with all our customers regarding the price revision. 9:40 9 minutes, 40 seconds So once that is settled the normal operation will take place and we are feeling quite confident about the Q1. 9:50 9 minutes, 50 seconds So any guidance say for the first half or the for the full financial year FI27 are you targeting 800 cr sales or more or less? 10:02 10 minutes, 2 seconds No. So our target for the entire year is 800 crores and that we are very confident to achieve 10:10 10 minutes, 10 seconds and any close on the first half that will be majority in first half. 10:14 10 minutes, 14 seconds I want I won't be able to you know give you the exact figures but uh it will be a normal quarter. 10:24 10 minutes, 24 seconds Okay. Thank you. Thank you. 10:33 10 minutes, 33 seconds We have next question from the line of Pankage from Exiscap. Sir, please go ahead. 10:39 10 minutes, 39 seconds Hello. Thank you for giving me this opportunity. A quick question I have is when you explain the Middle East crisis actually uh impacted your Q4. So can we 10:49 10 minutes, 49 seconds get at least some numbers for the actuals for the month of April uh uh this year April 26 and how did how do they compare it with April 25? 11:00 11 minutes Uh so the the as far as the export is concerned I think we'll do pretty much same as previous quarter. Uh it will be 11:09 11 minutes, 9 seconds a normal quarter as far as the export is concerned. uh the local domestic shipments will also be in you know quite 11:18 11 minutes, 18 seconds a healthy way except that you know there might be some time taken for you know 11:26 11 minutes, 26 seconds discussing about the price revision but otherwise we don't you know anticipate any major issues in quarter one 11:34 11 minutes, 34 seconds but is it possible for you to give the actual numbers for April sir no unfortunately I won't be able to give you the Okay, thank you. 11:47 11 minutes, 47 seconds Thank you. We have next question from the line of Akash from Envy Alpha Fund. Sir, please go ahead. 11:56 11 minutes, 56 seconds Yeah. Uh so I just wanted to understand uh I believe uh in terms of margins uh 12:04 12 minutes, 4 seconds both on the gross and margins we have almost taken a uh 7 to 8% uh kind of a hit. Uh 12:13 12 minutes, 13 seconds so and one of the reasons like you said is that uh our exports in March were halted due 12:20 12 minutes, 20 seconds to the Middle East war uh but uh to the amount of 70 to 80 cr but they won't 12:29 12 minutes, 29 seconds even have that uh would our margins be similar to what we 12:36 12 minutes, 36 seconds have uh we we have achieved in the past like in the last quarter. and year before. 12:46 12 minutes, 46 seconds So in you know month of March export as well as you know for the price increase 12:53 12 minutes, 53 seconds of you know all the commodities that has you know impacted the AITA margin and uh 13:00 13 minutes yes if this situation would not have been there we would have done similar uh margin as what we did in Q Q1 Q2 and Q3. 13:11 13 minutes, 11 seconds Understood. Uh so just a follow up on that I mean uh firstly uh what kind of inventory levels do we work on? Secondly 13:20 13 minutes, 20 seconds if you could quantify the gap in margins uh that is the 7 to 8% delta that we have in this quarter as against the previous quarters if you can split it 13:29 13 minutes, 29 seconds and quantify the amount of due to ex uh lack of us being able to export the transformers and uh the second reason 13:38 13 minutes, 38 seconds that you mentioned was the uh increase in commodity prices. If you could just quantify that at least three things. Yeah. 13:46 13 minutes, 46 seconds Even you want to know the inventory we keep in terms of uh rupees in value. 13:53 13 minutes, 53 seconds Yeah. Sure. Yeah. Yeah. And in in terms of months or days also we both value and month. 14:03 14 minutes, 3 seconds No. So I mean as of year and March 31st we have an total inventory of close to 14:10 14 minutes, 10 seconds 100 crores and I mean of course the export business has 14:17 14 minutes, 17 seconds higher margin than the domestic business and because of the less export in month of March the our has you know come down. 14:28 14 minutes, 28 seconds Okay. Mr. At any point of time we have only around uh uh 10 to 15% of for sale on inventory. 14:37 14 minutes, 37 seconds Uh Mr. Apach sorry for interruption please rejoin the for the follow question. 14:46 14 minutes, 46 seconds Yeah. 14:48 14 minutes, 48 seconds We have next question from the line of petals from Dal Gro. Please go ahead. 14:56 14 minutes, 56 seconds Yeah. Uh so uh thank you for the opportunity. Uh firstly what would be the export domestic units for the quarter? Uh secondly guidance on the 15:05 15 minutes, 5 seconds time margin fund for FI27 and uh the quantum of dis dispatches that were delayed in March. If you could yeah these are my questions. 15:16 15 minutes, 16 seconds Yeah. So in Q4 our total export was around 52 crores and the domestic is 15:22 15 minutes, 22 seconds around 100 crores and export we could not ship in the tune of almost like 3540 crores in month of March. 15:35 15 minutes, 35 seconds Okay fine and sir I mean you've already given the topline guidance for 27. So on in on terms of margins would it be the same 29 31%. 15:47 15 minutes, 47 seconds Yeah, we'll do our best to maintain the same margin or even increase the margin. 15:53 15 minutes, 53 seconds Okay, fine. And and so middleage exposure in F25 would be what percentage of your revenue? 16:00 16 minutes You mean the coming year? No, F25 and this year. 16:06 16 minutes, 6 seconds So uh for the total turnover we did almost 30% sales I mean 30% revenue came 16:15 16 minutes, 15 seconds from the export to Middle East in FY2526 16:21 16 minutes, 21 seconds okay here would be how much uh so sorry for the interruption Mr. Sha please uh join rejoin Q for the follow question. 16:32 16 minutes, 32 seconds That was just a part of the question that I think it was about same. I mean you can check the balance sheet. 16:45 16 minutes, 45 seconds Thank you. Okay. 16:49 16 minutes, 49 seconds A reminder to all the participants please restrict yourself to two per question. We have next question from the line of Naman Pramar from Newia Investment. Sir, please go ahead. 17:01 17 minutes, 1 second Yeah. Hi sir, just wanted to know currently uh what is the percentage cost of the transformer in the overall transformer? 17:12 17 minutes, 12 seconds I'm sorry I didn't understand your question. Can you repeat it please? 17:16 17 minutes, 16 seconds Yeah. The performance cost of the transformer oil in the transformer. 17:22 17 minutes, 22 seconds Transformer oil I think it's it depends on transformer because you know it varies from 17:30 17 minutes, 30 seconds different rating of transformers to different application of transformers but it is somewhere between 8% to 12%. 17:37 17 minutes, 37 seconds Okay, understood. And secondly on the lead time currently what you are seeing the lead time specific for the higher KV plus trans for the power transformer. 17:50 17 minutes, 50 seconds H it's about so power transfer whatever we make right now we are able to supply within you know 12 to 16 weeks. 17:58 17 minutes, 58 seconds Okay 12 to 16 week. Yeah. Okay. Understood. Thank you so much. 18:06 18 minutes, 6 seconds comments. 18:08 18 minutes, 8 seconds We have next question from the line of mata from in great activities. Please go ahead. 18:16 18 minutes, 16 seconds Hello. Yeah. Hi sir. Very very good evening. Uh so my first question is uh do you think we'll be able to get back to historical ITA margins of 30% now and 18:25 18 minutes, 25 seconds will the price revision with does the price discussion with the customers lead to similar margins that we used to make on the gross and level? 18:37 18 minutes, 37 seconds Uh yes like I said earlier we will do our best to maintain the same similar margin what we have been doing in past few years. 18:46 18 minutes, 46 seconds And so just a little uh broader picture you know on how's the uh competitive uh landscape in the overseas and maybe uh 18:54 18 minutes, 54 seconds some uh you know light on how how we going to expand beyond the 6 and a half thousand MBA capacity that will come 19:02 19 minutes, 2 seconds next year. So anything that we have planned let's say for a over a threeear view uh what is it that you know future 19:09 19 minutes, 9 seconds wants to achieve if you can throw some light on that not not numbers just a basic sense on 19:17 19 minutes, 17 seconds you know yeah uh so once this you know expansion takes place and we once we start fully 19:24 19 minutes, 24 seconds utilizing this new facility we can do a turnover of around 1,500 cr and of course we have a plan for further 19:33 19 minutes, 33 seconds expansion. So, uh we'll not wait for this new facility to be utilized 100%. 19:40 19 minutes, 40 seconds I'm sure that we'll do uh some you know further expansion. We'll plan it and we will announce it in future. 19:48 19 minutes, 48 seconds And who is the major driver being USA in this in the C or Middle East? 19:55 19 minutes, 55 seconds No, it will be combination of everything domestic and export. 20:01 20 minutes, 1 second Okay. And in domestic how is the pricing? 20:04 20 minutes, 4 seconds Mr. Kal Ma please sorry for interrupting please rejoin the queue for a followup question. Okay. Yeah. Thanks. 20:13 20 minutes, 13 seconds Thank you. 20:15 20 minutes, 15 seconds We have next question from the line of Nik Banushali from Walford EMS. Please go ahead. 20:23 20 minutes, 23 seconds Uh hi thank you for the opportunity. Am I audible? Yes please go ahead. 20:29 20 minutes, 29 seconds Yeah sir. Uh the first question is what is the current scenario in terms of uh transformer oil pricing and uh uh what 20:37 20 minutes, 37 seconds uh how much is the hike in the uh commodity raw material 20:44 20 minutes, 44 seconds the oil prices have become almost double than what we used to buy uh you know in month of February. So February till 20:53 20 minutes, 53 seconds today it it has you know increased to almost 100%. 20:58 20 minutes, 58 seconds and all other commodity has increased in range of you know 10% to 25%. 21:05 21 minutes, 5 seconds And uh that is still there I mean none of this has subsided in the current month. 21:12 21 minutes, 12 seconds No no no nothing. 21:15 21 minutes, 15 seconds Okay. Okay. And my second question is with the new facility coming up uh do we have any plans to move up the uh higher 21:22 21 minutes, 22 seconds voltage class? So I think up till now we just make transformers till 132 KV glass. So 21:29 21 minutes, 29 seconds yeah so the new the new facility what we are making will have a capacity to make transformers up to 160 MBA 220 KV plus. 21:40 21 minutes, 40 seconds Okay. Okay. And uh uh do we have any plans to get the uh PGCIL approval for that? 21:50 21 minutes, 50 seconds Of course. Yeah. Once the facility is ready, we'll be going for all the different uh approvals. Okay. Okay. Yeah, that's it from me. 21:59 21 minutes, 59 seconds Thank you. Thank you. 22:03 22 minutes, 3 seconds We have next question from the line of CA Gervid Goyel from Enox Capital Venture Private Limited. Please go ahead. 22:12 22 minutes, 12 seconds Uh hi. Uh am audible. Yes, please go ahead. 22:17 22 minutes, 17 seconds Thanks for the opportunity. Uh first question is on the margins front. 22:21 22 minutes, 21 seconds Considering the capacities in India right now uh do you really think domestic customers will agree to uh uh 22:27 22 minutes, 27 seconds to pass on the price hike sir in the uh yes because everybody is demanding 22:34 22 minutes, 34 seconds price rise and everybody knows that the prices have gone up drastically so if they don't accept I don't think 22:42 22 minutes, 42 seconds anybody will supply them any transform because nobody will do business in law. 22:48 22 minutes, 48 seconds Okay. And so far any domestic agreed to it for for we have already received uh 22:56 22 minutes, 56 seconds couple of price revision and we have already resumed supply to them. 23:01 23 minutes, 1 second Understood. And second question is on the guidance uh guidance for F27. Uh I remember in last phone call uh you 23:09 23 minutes, 9 seconds people were speaking about 850 to 900 CR forever 27 right and now we are speaking about 800. Considering that you you had 23:17 23 minutes, 17 seconds mentioned initially like things are getting normalized now and we are having the capacity to do that 850 900 CR then why we are not looking for that target 23:25 23 minutes, 25 seconds sir we are looking for that target I mean it will be 800 to 850 CR just 23:32 23 minutes, 32 seconds conservatively I'm saying 800 but of course we will we will try 23:40 23 minutes, 40 seconds 900 then 850 then now we are speaking about 800 so that's the reason I want to So it can reach to 900 also. I mean it's 23:49 23 minutes, 49 seconds not that we are not targeting but uh we have to take a conservative approach when we you know 23:58 23 minutes, 58 seconds say any figure and uh if you look at our past track record I mean whatever figure we have said we have always done more 24:07 24 minutes, 7 seconds so we will try and do whatever best possible whatever maximum is possible. 24:16 24 minutes, 16 seconds Got it sir. Uh thank you sir. Thank you very much and all the best for the future. Thank you. 24:23 24 minutes, 23 seconds A reminder to all the participants please yourself to two bar question. We have next question from the line of Ajit Singh from systematic. Please go ahead. 24:34 24 minutes, 34 seconds Uh thank you for the opportunity sir. Uh sorry to half of the question again. Uh just want to understand the gross margin impact for this quarter. 24:43 24 minutes, 43 seconds there is a severe impact on a Q1 environment basis. Uh so and as far as I understand there are a couple of forces acting and one of them is of course the 24:52 24 minutes, 52 seconds commodity price. Uh and there's also you know some of the imports that we do and uh the depreciation in also impacting 24:59 24 minutes, 59 seconds the increase costs. Uh so uh since the extent of increase uh for some of the commodities like oil is double in a 25:08 25 minutes, 8 seconds month or two months. So what percentage of it is uh is something that we can pass on to the end customer because I'm 25:17 25 minutes, 17 seconds sure there will be a limit to the absorption of the end customer as well. 25:21 25 minutes, 21 seconds So how does this gross margin you know look like going forward in Q1 and Q2 because I believe some of these forces 25:29 25 minutes, 29 seconds will will you know sustain even in the quarters going ahead. So what is our position within this entire situation to 25:36 25 minutes, 36 seconds pass on the increased cost of input and all the other costs? 25:41 25 minutes, 41 seconds So I mean frankly speaking whatever orders we have on hand you know it will be 25:48 25 minutes, 48 seconds I mean we will have to convince our customer to you know accept the price increase uh and we will be I mean we'll 25:57 25 minutes, 57 seconds have to accommodate our customers request also but going forward this is a temporary situation going forward 26:04 26 minutes, 4 seconds whatever new inquiries we get of course we'll be quoting you know higher price consider considering the present uh raw material cost. So then there will be no 26:13 26 minutes, 13 seconds impact on the you know margin right but the existing order book that we have uh so as as long as we agreed 26:22 26 minutes, 22 seconds the existing order book that impact might remain. Thanks uh not really because if customer has placed an order within you know delivery 26:30 26 minutes, 30 seconds in say Q2 or Q3 I mean they will have to give us the price right. 26:38 26 minutes, 38 seconds Okay. So you can also there's a possibility to negotiate on the existing contracts at the end. 26:42 26 minutes, 42 seconds Of course that's right sir. Thanks a lot. That's it from 26:50 26 minutes, 50 seconds a reminder to all the participants please rest you sir two two per question. We have next question from the line of 26:57 26 minutes, 57 seconds Sharma from Anox Capital Venture Private Limited. Please go ahead. Hi sir very good evening. 27:06 27 minutes, 6 seconds Yes please go ahead. Yeah. So sir, my question is on your sales like you said that our has been impacted due to export 27:14 27 minutes, 14 seconds and 30 to 35 crores of revenue has been stressed to the next part. So if we add 27:21 27 minutes, 21 seconds this 30 to 35 crores in our Q numbers that it comes to be around 192 it is 27:28 27 minutes, 28 seconds still less than the Q4 25 number 231. So the the big growth in the revenues is uh 27:35 27 minutes, 35 seconds you think that there is some global capacity in the reformer or the policy or the competition in which your TV 27:43 27 minutes, 43 seconds class has been increasing that that is uh is the uh I would not look at it that way. I 27:50 27 minutes, 50 seconds mean you have to look at the you know do the comparison on yeartoyear basis. So if we would have added about you know 35 27:58 27 minutes, 58 seconds crores of export in March then our growth from 623 28:04 28 minutes, 4 seconds so it would have been to you know almost close to 700. So that is higher than the previous year's turnover. 28:13 28 minutes, 13 seconds Look it is the Q425 number 2531 in the last quarter of the previous year. 28:24 28 minutes, 24 seconds I mean it is it's very you know difficult to compare from quarter to quarter. I mean it all depends on the you know order position. 28:33 28 minutes, 33 seconds So you know if you if you have done in previous quarter say higher turnover that does not mean that you end up doing 28:42 28 minutes, 42 seconds you know more turnover in the next quarter and we are running almost at full capacity almost. So, 28:50 28 minutes, 50 seconds so as of now in the uh in the distribution transformer sorry please can you repeat again? 28:59 28 minutes, 59 seconds I'm saying that as of now there is a good demand and distribution and the competition intensity is quite less and there is no situation of over chemistry as of now. 29:09 29 minutes, 9 seconds Yeah, demand is very good and uh the order position is also very good and we anticipate that new more and more demand 29:18 29 minutes, 18 seconds is going to come for the market segment what we are catering. 29:24 29 minutes, 24 seconds Okay, got it. Thank you. 29:30 29 minutes, 30 seconds Thank you. We have next question from the line of Yes. Gupta from Ait Kotesa family office. Please go ahead sir. 29:40 29 minutes, 40 seconds Uh good evening sir. Uh sir if we take the revenue of 650 cr for fi26 and 75 crores of the revenue that we are not 29:48 29 minutes, 48 seconds able to book due to supply issue. So that add up to 725 and for next year we are targeting 800 crores out of that 75 29:55 29 minutes, 55 seconds crores will come from this uh uh current month revenue. So do you think uh uh we are not projecting any growth for fi 27? 30:07 30 minutes, 7 seconds We are projecting growth. Uh like I said the growth will not be very substantial and this has been discussed in previous 30:15 30 minutes, 15 seconds investor meets also because we are running almost at the full capacity and once the new capacity which will be 30:22 30 minutes, 22 seconds added in year 2728 then we will see a multiple uh growth. 30:32 30 minutes, 32 seconds Okay. uh if you look at like from 7,500 to 14,000 uh MBA we are uh going to do 30:38 30 minutes, 38 seconds in next year uh while our all the major players are also doing uh adding up the capacity. How confident we are in the 30:46 30 minutes, 46 seconds industry that demand will be absorbed from the supply. 30:51 30 minutes, 51 seconds uh so like I said it's not I mean everybody is expanding right now and uh but at the same time if you look at the numbers and if you look at the you know 31:00 31 minutes demand being generated uh I think there is enough uh you know uh orders in the market you know which 31:10 31 minutes, 10 seconds everybody can you know cater to so I don't think because there is a strong demand in the market the expansion 31:19 31 minutes, 19 seconds will not be I mean very difficult for us to get the new orders. We are very confident that we'll be able to, you 31:26 31 minutes, 26 seconds know, uh get the orders and start the production and utilize the capacity to its fullest. 31:35 31 minutes, 35 seconds Okay. Sure. Thank you. Thank you. 31:39 31 minutes, 39 seconds Thank you. We have next question from the line of China from Satwa Ventures. Please go ahead. 31:49 31 minutes, 49 seconds Yeah. So I wanted to understand what kind of commodity inflation we are facing. So what are the items which are 31:56 31 minutes, 56 seconds getting expensive and how much it is and I wanted to link it to suppose if there's a 10 to 15% kind of increase in 32:03 32 minutes, 3 seconds the cost of commodities itself then from a 650 700 days to reaching to an 800 base with just the pricing increase for 32:11 32 minutes, 11 seconds almost say 8 10%. So uh can you throw some light on the commodity price thing and individual commodities also into this? 32:22 32 minutes, 22 seconds So I mean I can tell you that right now the commodity prices have gone up by 10 to 25% depending on the you know raw 32:30 32 minutes, 30 seconds material and uh oil is has specifically gone up uh by 100%. 32:38 32 minutes, 38 seconds uh what will happen in coming months we have no idea if suppose the situation improves and if there the crisis gets 32:46 32 minutes, 46 seconds over in middle age the prices may come down to the original level so it's very difficult to you know calculate based on 32:53 32 minutes, 53 seconds the inflation I mean nobody can predict that okay so uh indirectly do you have any 33:02 33 minutes, 2 seconds scope for any kind of volume growth in the coming year even a 5% 8% In terms of in terms of MBA we will be growing for financial year 26 27. 33:15 33 minutes, 15 seconds Can you give how much have you done for FI 26? Sorry. 33:20 33 minutes, 20 seconds How much was the FI 26 MBA? Uh I think it's almost 6,000 MBA. 33:28 33 minutes, 28 seconds Okay. So out of 7500 capacity we have done only 6,000. 33:33 33 minutes, 33 seconds Uh Mr. Simme, sorry for the interruption. Please rejoin the queue for the followup question. 33:40 33 minutes, 40 seconds I'm just a continuation of that if you can reply on the capacity utilization part. 33:50 33 minutes, 50 seconds Hello. We we take the next question. 33:58 33 minutes, 58 seconds Next question from the line of wisdom. Please go ahead. 34:05 34 minutes, 5 seconds Hello. Yeah sir my question is on the capacity utilization sir on FY25 our capacity utilization was 77%. 34:14 34 minutes, 14 seconds In FY26 the capacity utilization was 79%. 34:19 34 minutes, 19 seconds Now if you're saying that the demand has been so strong my first question is why [clears throat] the utilization has gone up by only 2 percentage point. 34:29 34 minutes, 29 seconds I think I already explained that you know because of Q4 this crisis of shipping and logistics we were not able 34:37 34 minutes, 37 seconds to ship out any transformers and that is why the you know the sales have gone down 34:47 34 minutes, 47 seconds just one clarification the capacity utilization that has been given on the presentation is on the basis of dispatches we have obviously produced 34:56 34 minutes, 56 seconds more and we are carrying that as closing stock as of 31st March which will be dispatched in the coming year. So the 35:04 35 minutes, 4 seconds utilization in terms of production is higher uh we are not at liberty to share that but it is higher than 79%. So 79% 35:12 35 minutes, 12 seconds or almost 6,000 MBA is the dispatches that we have done in 26. 35:18 35 minutes, 18 seconds Okay. Got it. Yes actually that is very important point to be clarified in presentation otherwise it is very confusing and uh so thank you. Thank you 35:27 35 minutes, 27 seconds again for the confirmation. Now my second question is that uh now we are saying in FI27 we are going to increase 35:34 35 minutes, 34 seconds that to 100%. Now first my first question is is it even practically possible? Are there no down times? Are there no maintenance windows? 35:48 35 minutes, 48 seconds So I have I mean we have never said that we will be utilizing 100% but we would be you know trying our best to reach to 35:58 35 minutes, 58 seconds our that goal. Uh like I said demand is strong and uh we will you know do our 36:06 36 minutes, 6 seconds best to you know get more and more orders executed. 36:11 36 minutes, 11 seconds Okay. But then if I look at your implied realization, if I do the math, if I look at your implied realization, you will 36:19 36 minutes, 19 seconds actually have to use around 95 100% utilization to reach your 800 cr topline growth 36:26 36 minutes, 26 seconds because your employation today is around 11 lakh per NBA. Uh and now given you 36:34 36 minutes, 34 seconds know you you have to use around 27.0 00 into 11 that gets you to around 825 cr 36:41 36 minutes, 41 seconds which means that around 100% I understand your point but that is a you know a fumble calculation we are not 36:50 36 minutes, 50 seconds sure what is going to be the commodity price what will be the costing per MBA you know going forward 36:57 36 minutes, 57 seconds so that figure may change you know I mean if suppose that copper aluminum price goes down the calculation will 37:04 37 minutes, 4 seconds change if it goes up beyond today's level again it's the you know the entire calculation will change 37:12 37 minutes, 12 seconds got it got it okay my second question is on the your 220 kg now there is I think known thing that in the industry that 37:21 37 minutes, 21 seconds there is a shortage of bushing you going to face that what is your take on that and who are your suppliers for this 37:30 37 minutes, 30 seconds so right now our supplier is you know high voltage they are also based in Boda 37:37 37 minutes, 37 seconds and uh we have a good business relation with them and we even plan to import 37:43 37 minutes, 43 seconds also from uh China. So uh go 37:50 37 minutes, 50 seconds okay thank you so you won't say shortage uh to make the trans yeah it is not a shortage I think the 37:58 37 minutes, 58 seconds lead time is quite long and if we maintain some inventory then I think we should be okay 38:04 38 minutes, 4 seconds okay okay thank you sir thank you we have next question from the line of 38:12 38 minutes, 12 seconds majal from family office please go ahead Hi Mr. Shock. So looking forward to the 38:20 38 minutes, 20 seconds new facility that we're introducing. Uh can you give us some indication as to by when we expect it to be fully ramped up on utilization? 38:29 38 minutes, 29 seconds So the production will start from April 27 onwards and of course I mean you know 38:37 38 minutes, 37 seconds the approval for the higher transformer will take some time because once the facility is ready we'll have to you know 38:45 38 minutes, 45 seconds apply we'll have to do registration our customer will come and do the you know audit of our facility and then the 38:52 38 minutes, 52 seconds actual production will start but meanwhile we will not you know leave a production facility uh ideal. We will 39:01 39 minutes, 1 second you know start taking more and more orders for the uh solar and wind projects and start manufacturing in that 39:08 39 minutes, 8 seconds facility and once we you know we start getting approvals and orders for the power transformer we will reduce the 39:16 39 minutes, 16 seconds solar and wind transformers in that facility and start making power transformers. 39:22 39 minutes, 22 seconds Understood. So in your experience could we then expect to see the full impact of the new facility in say FY29? 39:30 39 minutes, 30 seconds Uh I would say yeah FY 2930. Yes you can say that 2950. Thank you. And then for the 450 cr 39:38 39 minutes, 38 seconds order book that we have right now what percentage of that is exports? Uh almost I would say around uh 30%. 39:47 39 minutes, 47 seconds 30 32%. 39:50 39 minutes, 50 seconds Got it. And just to follow up on that, in the previous call, we talked about how US customers are currently or at least back in Q2, they were willing to 39:57 39 minutes, 57 seconds absorb the impact of the tariffs. Are we still finding that they are willing to absorb it or is there more push back on that front? 40:05 40 minutes, 5 seconds No. So right now there is no tariff now. 40:08 40 minutes, 8 seconds I mean whatever tariff is there, it is applicable to you know each and every country. So we are back in business now. 40:17 40 minutes, 17 seconds We are competing with our competitors you know uh very easily and we have already started getting orders from uh US customers. 40:28 40 minutes, 28 seconds So then so what would you attribute the lower export mix because this is much lower than our order book historically uh the export component because of the middle dispatch. 40:40 40 minutes, 40 seconds Okay. Just because of dispatch and that's affecting your order. Okay. Yeah. 40:46 40 minutes, 46 seconds Okay, that's all for me. Thank you so much. 40:50 40 minutes, 50 seconds Thank you. We have next question from the line of Mr. Suan from Purial Capital Advisor. Please go ahead. 41:01 41 minutes, 1 second Hi, thank you for the opportunity. Uh am I audible? Yes, please go ahead. 41:07 41 minutes, 7 seconds Yeah. Uh so I wanted to know your guidance in terms of volumes. Uh so you mentioned uh we did around 6,000 in FA 41:14 41 minutes, 14 seconds 26. uh what kind of uh numbers are you targeting for 27? Uh around 7,000 MBA. 41:24 41 minutes, 24 seconds Okay. And uh my second question is uh so effective utilization in F26 was 79%. 41:33 41 minutes, 33 seconds So uh what is the optimum number that we can go up to? I mean that uh 100% won't be practically possible but uh at what level we can take it up to? 41:45 41 minutes, 45 seconds So you know if like I said earlier if we would have been able to ship out the transformers to Middle East in month of 41:52 41 minutes, 52 seconds March that utilization would have gone up you know to maybe 82 83%. 41:58 41 minutes, 58 seconds And ideally you know in any facility up to 90 95% they are considered to be a good utilization 42:06 42 minutes, 6 seconds and we plan to do that for this coming year. 42:11 42 minutes, 11 seconds Okay. Okay. Got it. That's it. Thank you so much. Thank you. 42:20 42 minutes, 20 seconds We have next question from the line of Rashma Jan from VVD Asset Manager. Please go ahead. 42:27 42 minutes, 27 seconds Yeah. Hi uh Rish here. So I have two questions. First is with respect to uh inventory. 42:34 42 minutes, 34 seconds uh you mentioned uh that you couldn't do dispatches but when I look at the inventory of FI26N versus FI25 42:44 42 minutes, 44 seconds it is almost similar 92 os so if the dispatches might not have happened so I was just wondering how 42:52 42 minutes, 52 seconds should one look at it so I meanh you need to consider even the 43:00 43 minutes work in progress inventory and which uh which is also there and of course you 43:09 43 minutes, 9 seconds know when the in the beginning of shipping issue took place we had to stop the production I mean we did not convert 43:16 43 minutes, 16 seconds it into the finished goods uh because then storage and everything would be a problem and once uh this situation 43:24 43 minutes, 24 seconds became normal we already started dispatching in month of April. Understood. Understood. Yeah. 43:32 43 minutes, 32 seconds So the uh second question is with respect to your uh order book of 452 cr. 43:38 43 minutes, 38 seconds Um so one is that uh I could see in the industry a lot of companies have a backtoback kind of uh raw material 43:47 43 minutes, 47 seconds hedging policy. So just wanted to understand uh your approach here. Uh one is that you could ask customer to take 43:55 43 minutes, 55 seconds price hike as you mentioned in your comments. But the second is the contract itself. Uh which is is the contract has 44:03 44 minutes, 3 seconds price escalation u uh kind of uh terms into it and uh what is the heading policy? 44:12 44 minutes, 12 seconds So uh you know in the previous meet also we have said this that whenever we get an order we immediately book you know 44:20 44 minutes, 20 seconds either copper or aluminium and we don't take any risk on that but in this specific situation 44:28 44 minutes, 28 seconds uh the prices have gone up suddenly and very drastically where all our suppliers are were whatever orders we had placed 44:37 44 minutes, 37 seconds they are also not able to get the raw material at lower price and then they were demanding or they are demanding you 44:43 44 minutes, 43 seconds know price rise. So this is a very you know uh unique situation. It's in a you 44:50 44 minutes, 50 seconds know four major condition where everybody is demanding price rise even though you know the material is booked 44:58 44 minutes, 58 seconds or the order is placed and similar way you know we approaching to our customer with same post major condition and 45:06 45 minutes, 6 seconds asking for the price right. We do have some orders right now which are based on the PV clause where we are not worried 45:13 45 minutes, 13 seconds about anything because whatever the IMAP PV says at the time of dispatch we will you know charge accurately to the 45:20 45 minutes, 20 seconds customer but whatever orders are there at the fixed time we are demanding price raise 45:28 45 minutes, 28 seconds thank you so much and all the best thank you we have next question from the line ofu 45:37 45 minutes, 37 seconds shihare from MB Investment. Please go ahead. Hello. 45:45 45 minutes, 45 seconds Hello. 45:46 45 minutes, 46 seconds Hello. Yeah. My uh question is uh what percentage of cost is uh oil of the total cost and uh just another 45:55 45 minutes, 55 seconds clarification once the the war resumes in horos or like the shipping uh situation gets better. So we already 46:04 46 minutes, 4 seconds have the uh shipping uh the goods that are to be shipped to them ready right so that revenue can be realized uh soon 46:13 46 minutes, 13 seconds thereafter right so I think I already replied oil is depending on the transformer but it is 46:20 46 minutes, 20 seconds anywhere between 8% to 12% of the total transformer cost and of course you know customers still want transformer very 46:29 46 minutes, 29 seconds badly it is only because of the shipping we are not able to dispatch and the shipping has already you know somewhat 46:35 46 minutes, 35 seconds become normal. So we have started dispatching transformers in month of April. Okay. 46:41 46 minutes, 41 seconds And pretty soon I think uh situation will become normal. 46:48 46 minutes, 48 seconds All right. Thank you so much. 46:53 46 minutes, 53 seconds [clears throat] 46:54 46 minutes, 54 seconds We have next question from the line of from please go ahead. 47:00 47 minutes Hello sir. Um uh my first question was that I wanted to know how much in this year have we done sales to us and how do 47:09 47 minutes, 9 seconds you see the US transformer opportunity evolving over the next two to three years. 47:17 47 minutes, 17 seconds So we have done around 18 19% uh I mean 18 19% of our revenue has come from the 47:24 47 minutes, 24 seconds US export and this year US was like up and down because you know in August one year uh 47:33 47 minutes, 33 seconds US announced a tariff of 50% on Indian good where we lost some orders now it 47:40 47 minutes, 40 seconds has come down to you know 10%. So now we are able to compete and we have started getting orders from all our US customers 47:48 47 minutes, 48 seconds and the opportunities in next three more years is going to be great and uh we are 47:55 47 minutes, 55 seconds expecting you know quite a good growth in the US export 48:02 48 minutes, 2 seconds and my second question is s what would be the time of uh inverted duty transformers in US as well as in India. 48:12 48 minutes, 12 seconds Sorry, can you repeat that please? Uh what would be the time of uh inverted duty transformers in US as well as in India? 48:30 48 minutes, 30 seconds I think is only in India and some of the Middle East countries and India. You already have like government data where 48:38 48 minutes, 38 seconds government is targeting almost 50 to 55 gawatt of renewable energy. So that is the market which India has. 48:48 48 minutes, 48 seconds Okay. Okay. Thank you sir. 48:54 48 minutes, 54 seconds Ladies and gentlemen, due to shortage of time that was the last question. I now hand a conference over to Mr. Al Jesa 49:02 49 minutes, 2 seconds chairman managing director from SA technologies for closing comment. 49:08 49 minutes, 8 seconds So I thank you everybody to uh participate in this uh investor rate and uh we are very confident uh for this 49:16 49 minutes, 16 seconds coming year uh for the growth and profitability. 49:20 49 minutes, 20 seconds Last year was in a turbulent year in terms of the US tariff and this middle east crisis but uh uh we are hopeful 49:28 49 minutes, 28 seconds that the situation will become normal in Middle East and things will become uh normal you know very soon. Thank you once again for [clears throat] the participation. 49:39 49 minutes, 39 seconds Ladies and gentlemen, on behalf of Spark, that concludes this conference. 49:44 49 minutes, 44 seconds Thank you for joining us and you may not distract your line. Thank you.