00:00:00
for you to ask questions after the
00:00:02
presentation
00:00:03
concludes should you need assistance
00:00:05
during the conference call please signal
00:00:07
the operator by pressing star then zero
00:00:10
on your Touchstone telephone please note
00:00:12
that this conference is being
00:00:14
recorded I now hand the conference over
00:00:17
to Mr subad Mitra from naava wealth
00:00:20
management limited thank you and over to
00:00:22
you
00:00:23
sir thanks Ryan good afternoon friends
00:00:26
on behalf of nov wealth management
00:00:28
welcoming you all to the third quarter
00:00:31
fi25 results call of Transformers and
00:00:34
rectifiers inia limited we are joined
00:00:36
today by the top management of the
00:00:38
company represented by Mr jitendra Mt
00:00:41
chairman Mr Satan M managing director
00:00:45
and Mr Chanel rora CFO and adviser to
00:00:48
the board I would now like to request Mr
00:00:51
sat M to begin with his opening comments
00:00:55
over to you
00:00:56
sir good afternoon ladies and gentlemen
00:00:59
thank you for thank you all for joining
00:01:01
us on the on this earnings call we are
00:01:04
delighted to have you here as you
00:01:06
discuss our company's performance over
00:01:08
the past quarter following our board
00:01:10
meetings earlier today we have promptly
00:01:12
released our financial results and
00:01:14
investor presentation on the stock
00:01:16
exchange we are pleased to uh pleased
00:01:19
with our order book position and the
00:01:21
diverse range of order secure throughout
00:01:23
the quarter across various sectors
00:01:25
including renewable energy private
00:01:27
Industries and power utilities not
00:01:30
we our new orders uh this quarter
00:01:33
amounted to 631 cres our unexecuted
00:01:37
order book as on December 31st 2024
00:01:40
stands at 3686 Gres currently we have
00:01:44
inquiries worth 19,000 under negotiation
00:01:48
or in the buing stage moving forward we
00:01:51
are excited to share our Milestones
00:01:54
acquired controlling state in CJ
00:01:56
Processing Unit making 100% uh backup
00:02:00
integrated also entered into Supply
00:02:02
agreement for mother call crg
00:02:05
contributes about 30 to 35% of the total
00:02:07
raw material of Transformers pgcl
00:02:10
approval process initiated for the fully
00:02:12
automated digital facility successfully
00:02:15
completed 500 MV shuit test highest MV
00:02:19
tested in the uh and the highest number
00:02:21
of units manufactured in the single
00:02:24
month additionally we are pleased to
00:02:26
share that we have entered three
00:02:28
technological tires
00:02:30
aimed at supporting our backward
00:02:31
integration goals these collaborations
00:02:34
will help us enhance our capabilities
00:02:36
reduce dependencies on external
00:02:38
suppliers and improve our over overall
00:02:40
supply chain efficiency we expect them
00:02:43
to be operational by quarter 4
00:02:45
f26 throughout
00:02:47
fi25 we have placed significant emphasis
00:02:50
on people management and upscaling
00:02:53
initiatives acknowledging acknowledging
00:02:55
the pral role of Workforce in our sustem
00:02:58
success we have focused on enhancing
00:03:00
technical skills fostering leadership
00:03:02
ear and improving overall competence
00:03:04
across the manufacturing Fai and
00:03:06
Engineering divisions our strategic
00:03:09
recruitment is in key area such as
00:03:11
engineering sales and digital domain has
00:03:13
been aligned with our business
00:03:15
objectives we would like to take opport
00:03:18
this opportunity to express our sincer
00:03:20
gratitude to all our stakeholders for
00:03:23
our continued trust and support your
00:03:25
confidence in us drives us uh drives our
00:03:27
commitment to delivering value and we
00:03:30
look forward to further further
00:03:31
strengthening our Partnerships as we
00:03:33
move forward in this growth phase we
00:03:36
extend our sincere gratitude to each
00:03:38
participant for joining our earnings
00:03:40
call for the continued support and Trust
00:03:44
we hope we have addressed all your
00:03:46
queries satisfactory once again I thank
00:03:49
you for your participation today I will
00:03:51
now hand over the call to our CFO Cel
00:03:54
who will take you through the financial
00:03:56
details of the
00:03:57
quarter thank you s for providing an
00:04:00
overview of the current quarter I would
00:04:03
now like to share some key financial
00:04:05
highlights with our extend
00:04:07
shareholders dear shareholders I'm
00:04:09
pleased to the company's performance of
00:04:12
Q3 fy2 which has been a period of
00:04:14
notable growth in both revenue and
00:04:19
profitability in terms of the financial
00:04:21
highlights in quarter 3 f24 we are
00:04:23
extend our Standalone revenue from
00:04:25
operation EST which is 545 cres
00:04:28
reflecting a strong year on year growth
00:04:30
of 49% our av for the quarter was 87% 87
00:04:35
CR rupees marking a significant increase
00:04:37
of 166
00:04:39
136% compared to the previous year with
00:04:42
an operational AA margin of
00:04:45
15.69% additionally our profit after tax
00:04:48
for Q3 was 50 showing a healthy year
00:04:51
toye growth of
00:04:53
176% with a pet margin of
00:04:56
9.12% our our Revenue Target for current
00:04:59
Financial year remains intact and we
00:05:01
also started prepare ourself for FY
00:05:04
2526 looking forward we are optimistic
00:05:07
about our prospects for FY 25
00:05:10
anticipating announcement across various
00:05:13
Financial metrics our strategies are
00:05:16
centc centered on achieving a
00:05:18
streamlined balance sheet by reducing
00:05:20
that work and optimizing inventory
00:05:22
management our ultimate aim to transform
00:05:24
into a debt free company uh in a near
00:05:27
future supported by real EX enable plant
00:05:31
already underway the main emphasis of
00:05:33
the company is on the
00:05:35
cpir model which is basically cashay
00:05:39
cash payable reable and inventory
00:05:41
management I I am I I believe that these
00:05:44
four point pillars are most important
00:05:46
for the working Capital Management we
00:05:49
intend to achieve a revenue Target of
00:05:51
rupes 3,500 CR Plus in next financial
00:05:54
year raw material tiers for the year
00:05:56
round requirements are already in place
00:05:59
and Shop FL is all ready to take up the
00:06:01
new Revenue targets as I stated earlier
00:06:03
in many of my introdction I am happy to
00:06:05
inform you that we are on the right path
00:06:07
to achieve a US 1 billion Revenue in
00:06:10
next three to four Financial years in
00:06:12
conclusion we are well POS positioned to
00:06:15
capitalize on opportunities within the
00:06:17
India in all evolving energy sectors
00:06:19
with robust corporate governance and
00:06:21
Advanced Technologies Superior Products
00:06:23
and dedicated team we are confident in
00:06:25
our path towards the sustainable and
00:06:27
profitable growth I extend my heart
00:06:30
heartful gratitude to our customers both
00:06:34
management um and particularly our
00:06:37
committed employees for their uning
00:06:39
dedication and support together let us
00:06:41
continue to cultivate our promising
00:06:43
future I also thank all of you to
00:06:46
joining
00:06:47
us thanks you thank you we can you at
00:06:51
pleas thank you ladies and gentlemen we
00:06:55
will now begin the question and answer
00:06:57
session anyone who wishes to ask a
00:06:59
question may press star and one on their
00:07:02
Touchstone telephone if you wish to
00:07:04
remove yourself from the question queue
00:07:06
you may press star and two participants
00:07:10
are requested to use handsets while
00:07:11
asking a
00:07:13
question ladies and gentlemen we will
00:07:15
wait for a moment while the question Q
00:07:19
assembles the first question comes from
00:07:21
the line of Raj sarf from finest please
00:07:25
go
00:07:27
ahead so congratulations on a very good
00:07:30
sets of
00:07:31
SL and Sir uh something sir uh while
00:07:35
going through your presentation I
00:07:36
noticed that the order booking is in Q3
00:07:39
631 CR which was actually more than
00:07:43
th000 CR in Q2 and even in q1 the number
00:07:46
was very good so the dropping in order
00:07:49
booking numbers how to read that while
00:07:51
going through media and all available
00:07:53
resources we are coming to know that the
00:07:55
Transformer is uh very uh is in very
00:07:58
right spot
00:08:00
so this is the question the second
00:08:01
question is the qyp which we have
00:08:04
planned for 750 cres so are we looking
00:08:06
for any acquisition your term or what is
00:08:09
this
00:08:11
for uh
00:08:15
Raj Raj thank you for joining us as far
00:08:19
as the order book is concerned uh s will
00:08:23
take you through that uh thing uh okay
00:08:27
and as far as the qip is concerned let
00:08:29
me let me uh tell you that we don't have
00:08:32
we don't we have no intent to raise the
00:08:34
money in near future it is just enabling
00:08:37
approval we have taken from the board so
00:08:39
that if any good right good opportunity
00:08:41
comes across we are ready for that we
00:08:43
have no intention right now to to to
00:08:46
raise any funds in next two two quarters
00:08:48
or three quarters as then when a good
00:08:50
opportunity comes we would definitely
00:08:52
would like to uh um come to the
00:08:56
investors for support as as far as order
00:09:00
book is concerned um this is this is a
00:09:03
deliberated uh uh strategy of the
00:09:06
company as we don't want to take the
00:09:08
orders in a hurry we are already booked
00:09:10
and now we are more focused on the
00:09:12
orders which is got the high margin as
00:09:14
well as the pums are quite good we we
00:09:17
have we have made a very clear strategy
00:09:20
that there's no hurrying going on on
00:09:22
each and every order we have a very
00:09:24
strong order book already in place and
00:09:25
we also have a very strong inquiry in uh
00:09:29
in place so orders will be taken as in
00:09:32
when we think that it's a right right
00:09:35
order for the organization thank you and
00:09:39
uh one question is Sir uh the margin
00:09:41
which I am seeing in Q3 16.5 which was
00:09:45
about 17% in Q2 and we are actually on
00:09:48
the scale of operation we are producing
00:09:50
so much now so why this scale of
00:09:52
operation is not kicking in sir am I
00:09:54
reading something
00:09:56
else sorry I did not understand your
00:09:58
question so the ab margin sir which is
00:10:01
right now 16.5% which was in Q2 was
00:10:04
about 7 and we are actually ining our
00:10:07
scale of operations so in this case sir
00:10:10
the margin should increase or am I
00:10:12
reading something I'm missing something
00:10:14
else sir look Raj the margin AA margin
00:10:18
is just 7% which is different from the
00:10:21
Q2 you need to understand that we have a
00:10:24
different product mix and we have a
00:10:25
different product portfolio so 8 is
00:10:28
basically the depend on the product
00:10:30
folio and some product we have some
00:10:32
higher margin some we have a less margin
00:10:34
so this this margin is going to remain
00:10:36
into this this range itself but apart
00:10:39
from that if the significant things I
00:10:42
would like to address it to you though
00:10:44
we have the
00:10:47
92.7% less as compared to the last
00:10:49
quarter our pet line is increased as
00:10:52
compared to the last quarter which is a
00:10:53
very significant achievement for us and
00:10:55
as I have been telling in my all the
00:10:57
intructions that my more emphasis on the
00:10:59
pat that I want to reach the 10% Pat
00:11:02
level and I'm happy to sh say that that
00:11:05
we are very very close to
00:11:07
that yeah thank you sir and so the
00:11:10
long-term guidance of $1 billion Revenue
00:11:12
which in presentation in the last and in
00:11:14
the last conference call which was we
00:11:16
are seeing that in next three years we
00:11:18
will be meeting1 billion revenue and
00:11:20
then sir uh when the CFO spoke sir the
00:11:23
timeline was three to four years or so U
00:11:27
three years or four years
00:11:31
Raj you know that the matrics keep
00:11:34
changing right we we want to we want to
00:11:37
achieve it in next two years time but
00:11:39
how the metrics work out it will depend
00:11:42
on that so the 3 to four year I think is
00:11:44
a reasonable very good
00:11:46
life yeah okay thank you thank you very
00:11:48
much sir and conratulations once again
00:11:49
for posting a performance like that so
00:11:52
thank you very much thank you thank
00:11:57
you sh
00:12:00
yes sir please go ahead I request that
00:12:03
at one point time if you can take one
00:12:05
question so that others will have the
00:12:07
opportunity also okay sir I'll make the
00:12:10
announcement as well thank
00:12:13
you ladies and gentlemen a request from
00:12:16
the management is to restrict to one
00:12:19
question per
00:12:20
participant our next question comes from
00:12:23
the line of Manish oswal from Nal buang
00:12:25
Securities private limited please go
00:12:28
ahead
00:12:29
yes sir thank you for the opportunity
00:12:32
most of the questions already answer
00:12:34
only I have one question what the
00:12:36
current gross debt on the balance sheet
00:12:38
and the working capital net working
00:12:39
capital uh absolute
00:12:43
figure sorry we didn't get your question
00:12:47
man I'm asking sir what is the gross
00:12:49
date on is on 31st December and what is
00:12:52
the working capital fig at AG on 30
00:12:55
December I'll address it this question
00:12:57
when I present you quarter for audited
00:13:00
numbers please because since we have not
00:13:02
disclosed the balance sheet so under the
00:13:04
guidelines of sa these figures cannot be
00:13:07
disclos here at this
00:13:09
moment okay and secondly sir uh we are
00:13:12
hearing so much so much of debate on the
00:13:15
Slowdown of in the economy government
00:13:17
spending so compared to the H1 how do
00:13:19
you see the things in your
00:13:22
uh business whether where things are
00:13:24
picking up or gradual picking up can you
00:13:27
make comment on that that would be great
00:13:29
thank you uh Manish if you look at our
00:13:33
uh this quarter order book that stands
00:13:36
at 631 crores and our uh unexecuted
00:13:40
order book for the next 18 to 24 months
00:13:44
is
00:13:45
3,686 crores so there is no slowdown as
00:13:49
such in terms of uh infrastructure
00:13:52
development in India we have inquiries
00:13:55
worth 19,000 crores under negotiation or
00:13:57
in biding stage so there is a lot of
00:14:00
opportunity for uh all this uh
00:14:06
business okay sir thank
00:14:10
Youk thank you the next question comes
00:14:13
from the line of subra from Lama wealth
00:14:16
management please go
00:14:18
ahead yeah thanks uh so two questions
00:14:21
from my side firstly just wanted to
00:14:23
understand a little bit clearly on the
00:14:25
guidance I think I heard in your opening
00:14:27
comments uh that we're looking at about
00:14:30
3,000 CR Revenue by FY
00:14:34
265
00:14:37
3,500 3,500 and for fi 27 sir is there a
00:14:41
number I think we were looking at a
00:14:42
number closer to four four and a half
00:14:44
let let us let us achieve the next year
00:14:46
numbers first year understood and the
00:14:49
margin trajectory I think in the past
00:14:51
also you have mentioned that you're
00:14:53
looking to move towards 17% plus kind of
00:14:56
a margin by F 527 we s hold on to
00:15:00
that currently we
00:15:03
are understood uh secondly with in terms
00:15:08
of one the utilization of the qip funds
00:15:12
that that we raised some time back and
00:15:15
the benefit of the uh backward
00:15:17
integration and m& that you're seeing so
00:15:19
how much of the quantum has got utilized
00:15:22
how much is yet to be done and secondly
00:15:24
how do you see this backward integration
00:15:26
into crgo and the other proposed m&
00:15:30
activities uh you know helping in terms
00:15:33
of your margin
00:15:35
expansion uh sub just I just the earlier
00:15:38
participant I told that uh uh uh the
00:15:42
balance sheet thingss we cannot disclose
00:15:45
is right now so uh we are we are
00:15:47
submitting our details about the QP
00:15:50
utilization to The Exchange time and
00:15:52
again so that I can't right now tell you
00:15:55
uh these things yes but on we are on the
00:15:57
right path to University funds on a
00:16:00
right place and right proposition that
00:16:02
is one thing I can make you sure that it
00:16:04
is going to add a significant uh
00:16:07
Improvement in my top line as well as in
00:16:09
my bottom line and as far as how this
00:16:12
backward integration is are going to
00:16:14
benefit us I would request my chairman
00:16:17
to put up his thought on
00:16:21
this thank you
00:16:25
chel it is going to be minimum 4%
00:16:29
uh increase in the pet uh when we put
00:16:34
all the projects online on track uh
00:16:38
because it is not I mean some of the
00:16:40
product is meant for us some some of the
00:16:42
products also for us and for selling it
00:16:45
to the market but the advantage which we
00:16:48
are going to get using our own product
00:16:52
will uh uh reduce my raw material by
00:16:56
about 4% total
00:17:01
understood and and you envisage all
00:17:03
these benefits panning out by fi 27 or
00:17:06
could it take slightly longer no but
00:17:08
before
00:17:10
that I do it okay okay understood that's
00:17:14
it from my side thank you so
00:17:16
much thank you our next question comes
00:17:19
from the line of gorov Shukla from
00:17:21
festers please go
00:17:27
ahead go please proceed with your
00:17:33
questions since there is no response we
00:17:35
move on to our next question which is
00:17:37
from the line of Shivan D from pry
00:17:41
Investments please go
00:17:44
ahead am I
00:17:46
AUD yes you are yeah congrats on the
00:17:50
great set of numbers uh
00:17:59
sham please go
00:18:02
ahead yeah am I audible yeah yeah you're
00:18:06
audible terms yeah in terms of the
00:18:08
15,000 MBA kex that we are incurring
00:18:11
right now where are we in terms of the
00:18:14
process right
00:18:18
now uh Sham this project is on
00:18:23
quite and we expect this to be completed
00:18:26
by February March and we expect early
00:18:28
next year the um uh operation will start
00:18:33
and uh also if you have seen the in the
00:18:36
presentation chairman has said that from
00:18:39
this quarter we will start taking the
00:18:41
orders for that uh uh
00:18:43
expansion so it should start
00:18:48
from1 yes yes yes okay okay thank
00:18:52
you thank you our next question comes
00:18:55
from the line of Ganesh Ram from UniFi
00:18:58
capital please go
00:19:00
ahead congratulations on the numbers um
00:19:04
I just have a two questions first on the
00:19:08
3,500 CR guidance for f26 how much of
00:19:12
that is be coming from our existing
00:19:14
capacity and how much on the capacity
00:19:16
that you'll be Comm commissioning in
00:19:18
March right so could give us some um
00:19:20
granular details on the rtop and how how
00:19:23
how that con your guidance and the
00:19:25
second one is with the c dark
00:19:27
integration right so I understand it's
00:19:30
30 35% of your cost but if you could
00:19:32
just give us a broad scit that on a
00:19:34
sustainable level uh what is the RM cost
00:19:37
in our Transformers you know on a
00:19:38
blended basis and other than c what are
00:19:41
the other components that you know
00:19:44
influence the
00:19:50
cost
00:19:52
Gan first of all in this 3,500 there is
00:19:55
no cap there is no addition of the uh
00:19:59
facility which is coming up it is from
00:20:00
the all all all is from the existing set
00:20:04
of uh the system this is this is one
00:20:08
that as I told you earlier also we are
00:20:10
not even started taking the orders from
00:20:13
the uh for for the expansion facility
00:20:18
right you can see that I already have a
00:20:22
3,600 so we'll be able to do that so
00:20:27
Ganesh uh the
00:20:29
3,600 order book is for the next uh 18
00:20:34
to 24 months so we will be doing 3,500
00:20:40
crores partly from the existing facility
00:20:43
and partly from the new facility that we
00:20:45
are uh going to uh
00:20:50
start okay okay so there is no
00:20:53
additional amount you should expect over
00:20:55
the
00:20:56
3,500 from the facility you're thinking
00:20:59
this will be executed but I mean
00:21:01
basically existing will be SP
00:21:04
across
00:21:07
yes okay about to your second question
00:21:11
Gan as we told that cgo is 35% of my raw
00:21:15
material component that itself is a
00:21:18
quite a significant amount and CG is the
00:21:20
second most expensive product also in uh
00:21:23
uh my my product
00:21:26
line yes so the remaining RM what would
00:21:30
it be sir uh this this is this is the
00:21:34
product makes and this is are lots of
00:21:37
items are import lots of components
00:21:39
involved that we would not like to
00:21:41
discuss here in this one understood and
00:21:44
maybe the last one just one last one is
00:21:46
I heard you were answering another
00:21:48
participant saying you're being a bit
00:21:49
selective in your order in right so if
00:21:51
you could just give us a sense on the
00:21:54
orders that you have now accepted in the
00:21:55
600 orders uh what would be the
00:21:57
increment in margin compared to existing
00:22:00
margin this is this is a business
00:22:03
question which I would not like to
00:22:04
discuss here thank
00:22:07
you thank you the next question comes
00:22:10
from the line of rajit Agarwal from Neil
00:22:13
giri investment managers private limited
00:22:15
please go
00:22:16
ahead uh sir thank you for giving me the
00:22:20
opportunity to ask questions uh is it
00:22:22
possible for you to comment on the data
00:22:25
days if you can't disclose your absolute
00:22:26
numb whether how has the movement been
00:22:29
in
00:22:30
dataday in Q3 compared to Q2 has it Ren
00:22:34
is it still the same or has it
00:22:36
improved it has improved uh sir it's
00:22:40
improved great and are there any
00:22:42
overdues from any of the uh government
00:22:45
uh clients public sector undertaking
00:22:49
there is no there is no overdue there's
00:22:51
no overdue okay and lastly uh sir is it
00:22:54
possible to throw some more light on the
00:22:57
acquisition that you have made
00:22:59
uh as to the cost of the acquisition uh
00:23:02
by when do you think it'll be
00:23:04
operational and uh by when will will it
00:23:07
start to AC or or the when will the ABA
00:23:11
margin start to show Improvement because
00:23:13
of that facility because of the back
00:23:14
integration acquisition has already
00:23:17
started uh uh doing our work it is it is
00:23:20
basically existing facility and it has
00:23:23
already started uh uh doing our work
00:23:28
there improvement from this this
00:23:30
particular acquisition will start from
00:23:31
the q1 next year when this is uh uh 100%
00:23:35
uh uh uh integrated with our
00:23:39
system wonderful sir and the cost of the
00:23:43
acquisition sir uh with this AB
00:23:46
guidelines I am bound to not to disclose
00:23:50
that okay sir thank you thank you for
00:23:52
the
00:23:53
than thank you the next question comes
00:23:56
from the line of VES from from kimma
00:23:59
wealth please go
00:24:01
ahead hi sir am I
00:24:03
audible yeah yes just want to understand
00:24:06
the demand from the Europe side so last
00:24:08
call I believe with the European CL so
00:24:11
just want understand that how is it
00:24:15
planning sorry what uh the orders from
00:24:18
the European CLI sir how's the
00:24:23
situation uh look the orders are keep
00:24:28
coming from the all the corners right
00:24:31
European also we got some orders in last
00:24:33
quarter and this quarter also and they
00:24:35
are in discussion at the various level
00:24:37
with the other clients but you know let
00:24:39
me tell you one thing very category
00:24:41
clear the opportunities are quite huge
00:24:43
in India much better than the other part
00:24:46
of the world so my focus is first to
00:24:48
enage the opportunities which lies right
00:24:50
now here and we are working on those
00:24:52
directions and the Europeans we are
00:24:55
discussing with not only with the
00:24:56
Europeans we are discussing with few of
00:24:58
the American clients also very recently
00:25:00
few American clients have listed and as
00:25:02
in when the good amount of the order
00:25:03
comes we always keep announcing it to
00:25:05
The Exchange
00:25:06
also okay going forward we see uh
00:25:10
foreign orders increasing or it is
00:25:12
mostly towards the domestic thing which
00:25:13
will be the majority of
00:25:16
a so Vish we would like to limit our
00:25:20
export orders to 24 30% and not beyond
00:25:24
that uh rest uh we would uh our uh
00:25:29
uh we want to develop India and that's
00:25:33
why we are keeping our 80% capacity for
00:25:37
India okay sir that was helpful thank
00:25:39
you all the
00:25:41
best thank you the next question comes
00:25:44
from the line of Ashish soning from
00:25:46
family office please go ahead out of
00:25:49
90,000 order book how many are we
00:25:51
expecting to convert for our order
00:25:58
is keep getting converted as and when we
00:26:00
want right now as I told you that we are
00:26:02
not focused on the taking the left and
00:26:04
right orders we are more focused on the
00:26:06
orders which are high yield generated to
00:26:09
us and uh quick payment things right if
00:26:11
I want to take the orders I can take
00:26:13
1,000 cr r order every month that is
00:26:16
right now the scenario of the market but
00:26:19
we are very very selective on the order
00:26:22
size is it like maybe 25% of 19,000
00:26:26
approximate any guesses uh sir uh we
00:26:28
have a Target as I told you that in any
00:26:30
of our discussions we will keep telling
00:26:32
that we will be having a order book of
00:26:34
4,000 CR plus by the end of this
00:26:36
financial year and we are working on
00:26:38
those Direction
00:26:39
completely okay thank you all the
00:26:42
best thank you the next question comes
00:26:45
from the line of Vishnu boa an investor
00:26:48
please go
00:26:50
ahead hi
00:26:53
sir congratulations for the good set of
00:26:56
members thank you
00:26:58
and I'm glad to see as an investor for
00:27:00
this looking this numbers thank you sir
00:27:04
and my question is from that side
00:27:06
of previously we have said that 19,000
00:27:09
inquiries which we will convert 25 to
00:27:11
30% conversion rate is it right
00:27:17
sir generally
00:27:23
yes and is it impact in this quarter
00:27:26
also 25 to 30% or any change in that
00:27:28
percentage
00:27:29
conversion see it be it's difficult to
00:27:34
say you know because the market is very
00:27:39
what should I say uh good at this point
00:27:43
of time so who wants to take the order
00:27:47
the people the companies who does not
00:27:49
want to take the order because they are
00:27:51
full with the orders uh then their
00:27:55
prices will be higher like us you know
00:27:57
we have quoted we started cting uh at
00:28:00
the higher margins now uh so that you
00:28:03
know the conversion
00:28:06
uh maybe not 25 30% 205 maybe 15 to
00:28:12
20% okay understand sir thanks for that
00:28:16
one and next one is question
00:28:19
from we had par
00:28:22
mag tax nearing to 10% in coming
00:28:25
quarters we may cause the 10%
00:28:31
sir basically basically if you have been
00:28:34
if you have been hearing my all the
00:28:35
conversation I always say that my target
00:28:38
is to reach to the 10% P levels and
00:28:42
sustainable mode if I continue that that
00:28:43
will be a great achievement for
00:28:45
us yeah okay and we are going to for Q
00:28:49
is it for both organic and inorganic
00:28:52
grow I just the first question which I I
00:28:55
answered is that there is no plan of
00:28:57
raising fund
00:28:58
right now we we we have just taking we
00:29:02
have just taken enabling approval and as
00:29:04
in when if any opportunity comes we will
00:29:07
think over that but in near future there
00:29:09
is no such plan yeah okay that's all
00:29:12
from my side so thanks for the
00:29:13
opportunity given me sir thank you
00:29:17
sir thank you ladies and gentlemen a
00:29:20
reminder please restrict to one question
00:29:23
per
00:29:24
participant the next question comes from
00:29:26
the line of re
00:29:28
from GS investment please go
00:29:31
ahead congratulations on excellent think
00:29:33
of number consistently quarter after
00:29:36
quarter my qu is about the export
00:29:39
potential and any risk of Duties being
00:29:42
led by in Trump government and the
00:29:46
increased and impact of increased Red
00:29:50
Sea leading to increased Freight rate
00:29:53
and opportunity size in India and
00:29:54
expected growth rates thank you okay vi
00:29:58
just if you heard MD sir has just told
00:30:02
that we don't want to increase our
00:30:04
export abruptly we just want to we just
00:30:07
focus that we should have a 20% order
00:30:10
book by end of next financial year uh
00:30:13
from the export and we would like to
00:30:15
strict on that the opportunities are
00:30:18
lies in India are much much better than
00:30:19
the export and we first wants to uh
00:30:22
adopt the policy of India first as far
00:30:25
as the uh uh
00:30:28
the government policies and all these
00:30:30
concern we don't see any changes much in
00:30:32
these policies coming and Freight rates
00:30:34
are the are the rates which is keep
00:30:37
coming and going and generally now we
00:30:39
have stopped taking the orders on the
00:30:41
CIF basis we are more focused on the
00:30:43
orders on the fov basis or xor basis so
00:30:47
uh changes in the Fate won't effect on
00:30:50
us thank you the next question comes
00:30:53
from the line of Jim from salaro
00:30:56
investment please go ahead
00:30:58
uh thanks for taking my question and
00:31:00
congratulations on a fantastic set of
00:31:02
numbers my questions is about the uh new
00:31:07
fully automated radiator facility that
00:31:10
you are seeking approval from PGC so I
00:31:13
wanted to understand uh I guess it's a
00:31:16
high value product if you could explain
00:31:18
what is its utility and will it be
00:31:21
focused on the exports or domestic
00:31:23
market and at what stage of PGC approval
00:31:26
are we uh if you could explain that that
00:31:29
would be great see it is not a high
00:31:32
value product the cost of the radiator
00:31:34
in the Transformer raw material if you
00:31:37
consider the Transformer raw material
00:31:39
the cost of the radiator will be around
00:31:43
8% to 9% not more than that and uh there
00:31:48
are lot of opportunities for export for
00:31:51
the radiators also but you know before
00:31:54
exporting uh we want to be sure that uh
00:31:58
the quality which which comes out of the
00:32:01
plant uh meets with the requirement of
00:32:04
the uh foreign customers so we will wait
00:32:08
for the right opportunity once fully we
00:32:11
are satisfied we'll start exporting
00:32:14
there is there's no D of the orders as
00:32:16
such uh most of the people who are
00:32:19
making rators are fully booked their uh
00:32:23
delivery time has gone to something like
00:32:27
uh 10 to 12 months now in India uh so
00:32:31
you know there is no doubt of the orders
00:32:32
so you can get the ORD but the in
00:32:36
absolute terms the cost of the radiators
00:32:39
or the percentage of the radiator cost
00:32:41
is only 8% of the
00:32:43
total uh cost of the transform material
00:32:47
cost of the
00:32:48
Transformer and the secondly is that
00:32:51
that first we wanted to become 100%
00:32:55
backward integrated in radiators for our
00:32:57
own requirement
00:32:58
and for as far as the PGC approval is
00:33:02
concerned we have just initiated it for
00:33:04
the 765 KV class approvals so it just we
00:33:08
just we just initiated it so it will
00:33:11
take some time to get
00:33:14
it thank you the next question comes
00:33:17
from the line of Ishita Loa from Swan
00:33:19
investment please go
00:33:23
ahead thank
00:33:25
opportunity uh question is
00:33:37
is sorry to interrupt you there but your
00:33:39
audio is not
00:33:43
clear could you please repeat your
00:33:50
question it's still not
00:33:54
clear
00:33:56
hello yes is please go ahead so thank
00:34:00
you for opportunity I have a
00:34:07
question and I also heard um some of the
00:34:11
raw material would
00:34:14
Market proportion as to how much should
00:34:16
be sold in the
00:34:20
market if I can not hear her question
00:34:23
clearly but whatever I heard is that
00:34:25
she's talking about the acquisition what
00:34:27
we have
00:34:28
done right now right so uh uh just to if
00:34:33
if I am right then uh the first Target
00:34:37
is to utilize that acquisition for
00:34:39
completely inhouse purpose and after
00:34:43
that if anything is available we will be
00:34:45
selling it to the uh PE right but we we
00:34:50
say it cannot be at the present scenario
00:34:52
it cannot be more than 15% of the total
00:34:55
capacity available
00:34:59
thank you the next question comes from
00:35:01
the line of abishek sha from Ambit
00:35:04
limited please go
00:35:06
ahead uh hi good afternoon sir and
00:35:08
congratulations on a fantastic quar uh
00:35:11
just a question on the uh you know post
00:35:15
this 16,000 MV capacity expansion what
00:35:18
would be our estimated uh you know
00:35:21
Revenue capacity of our install base and
00:35:25
just to clarify our effort 25 Revenue
00:35:28
Target was around 2,000 CR
00:35:33
right uh uh yes aake our FY Revenue
00:35:37
Target 25 Revenue Target is 2,000 CR
00:35:40
rupees and we are still on that Target
00:35:44
and we hope that we'll be able to
00:35:46
achieve that and second thing this post
00:35:48
this uh uh um expansion we will be
00:35:52
somewhere around 55,000 MBA levels
00:35:59
thank you the next question comes from
00:36:01
the line of mayang bandari from amsac
00:36:05
please go
00:36:07
ahead yeah thanks for the
00:36:10
opportunity you highlighted order book
00:36:13
by the end of this year would be 4,000
00:36:16
CR next year Revenue guidance is 3,500
00:36:22
CR transtion timeline you also 18 to 24
00:36:26
months
00:36:28
so what am I missing here is it like you
00:36:31
are getting more orders more shorter
00:36:35
order or how 4,000 order will translate
00:36:40
into 3,500 of
00:36:42
Revenue okay
00:36:44
may just to just to inform you that we
00:36:48
have three facilities and all these
00:36:50
three facilities produce different kind
00:36:52
of Transformers when we are talking
00:36:53
about 4,000 order book we don't count
00:36:56
much of the
00:36:58
order from the distribution facility
00:37:00
because these are the orders which are
00:37:02
the which are of the short time orders
00:37:04
say order comes in a month or two months
00:37:06
time we make the orders and give it to
00:37:07
that when we talk about the 4,000 CR
00:37:10
rupees order book majority orders is for
00:37:13
which is there for 200 plus KV plus
00:37:16
Transformers right our second facility
00:37:18
Chang also produce the midlevel
00:37:21
Transformers that is also the lead time
00:37:23
is around 3 to four months time so the
00:37:26
uh this this uh
00:37:28
uh combination is is good enough to give
00:37:30
us the uh targets which we are uh
00:37:33
telling right
00:37:36
now thank you the next question comes
00:37:39
from the line of Nikita goyel from shba
00:37:42
lakmi family office please go ahead hi
00:37:46
sir congratulations on the good set of
00:37:48
numbers uh I just have this one question
00:37:51
uh green hydrogen Transformers which you
00:37:53
are the so qualified supplier so how
00:37:57
much uh market share is from this
00:37:59
particular product like how does this
00:38:02
product push to your market
00:38:07
share market share is today around 18
00:38:11
between 18 and
00:38:12
20% for I'm talking about eh
00:38:16
Transformers Transformers talking about
00:38:19
the green hyrogen that is not green
00:38:21
hydrogen is not yet started green
00:38:23
nitrogen is
00:38:25
prototyp just know the projects are uh
00:38:29
has not took up taken up they have not
00:38:32
taken up the project as yet that's a
00:38:34
very initial stage they're making
00:38:36
prototype and checking
00:38:40
the
00:38:43
the yeah so it's going to take
00:38:47
time thank you the next question comes
00:38:50
from the line of sui saroki from Smith
00:38:54
Capital limited please go
00:38:56
ahead hello uh thank you for the
00:38:59
opportunity sir uh sir I I have just one
00:39:03
clarification uh in your opening remarks
00:39:06
you said that you have become 100%
00:39:08
backward integrated with the acquisition
00:39:11
of what was the name of the entity that
00:39:14
you
00:39:16
mentioned CCO per electricity
00:39:19
electricals private
00:39:20
limited okay uh it is the CR Geo
00:39:23
processing unit that you have acquired
00:39:25
right yes yes
00:39:27
okay sir thank you thank
00:39:30
you thank you the next question is from
00:39:34
the line of G of Shukla from fin
00:39:36
investors please go
00:39:39
ahead thank you for me opportunity
00:39:42
consideration for a good set of number
00:39:45
sir my question regarding last you have
00:39:50
said
00:39:52
that if you want you can take thousand
00:39:57
and I want to know sir what the
00:40:00
factors affing the order book why you
00:40:03
cannot take much much and second
00:40:08
regarding
00:40:09
crg is there any
00:40:15
crg okay uh G first first question is
00:40:19
that that why I am not taking this order
00:40:21
because I don't want to pay the late
00:40:23
delivery charges to the
00:40:25
customers okay second Point as I told
00:40:28
you time and again I was mentioning that
00:40:30
we wanted to leverage on the pricing as
00:40:33
well as on the payment terms so so we
00:40:35
are very selective on the on the
00:40:37
customers basically on the payment terms
00:40:40
and the pricing
00:40:42
side so that is the thing and as far as
00:40:45
the CR is concerned yes crg
00:40:48
is is in the exity in the country India
00:40:52
doesn't produce the crgo and there are
00:40:55
the processing of the crg is more
00:40:57
important because there are not much
00:40:59
good processing centers are available in
00:41:01
the
00:41:03
country thank you the
00:41:06
next can we please take last two last
00:41:09
questions please oh certainly sir the
00:41:12
next question comes from the line of
00:41:13
Amit from PL Capital please go
00:41:17
ahead hi thanks for the opportunity I'm
00:41:20
audible yeah yeah so first question is
00:41:24
kind of a clarification you talked about
00:41:26
a billion dollar Revenue um in next
00:41:29
three Financial year are we talking
00:41:31
cumulative number of 9 to 10,000
00:41:33
collectively in 36
00:41:38
months I I don't think that I should
00:41:40
reply this question uh
00:41:43
Amit how can I reach to a billion dollar
00:41:45
Revenue if I am you talking about a
00:41:47
collective number of five years or four
00:41:50
years as just wanted a clarification on
00:41:53
what you have written in your
00:41:54
presentation I don't think that I should
00:41:56
even reply this number I'm talking about
00:41:58
a year number a year Revenue annual $1
00:42:02
billion right yes yes okay and
00:42:10
second we have lost the line for ahed uh
00:42:13
we'll move on to our next question from
00:42:15
the line of Naman parar n Investments
00:42:18
please go
00:42:19
ahead yeah good afternoon sir thank you
00:42:22
so much for the opportunity so I just
00:42:24
wanted to understand on the Metro side
00:42:27
so how much the transmission work has
00:42:29
been completed till now being a largest
00:42:31
player in the power transformer you will
00:42:33
be better able to give understanding on
00:42:35
that and secondly I wanted to understand
00:42:38
on the uh late time in in the export
00:42:42
Market see we we have no idea about how
00:42:46
much
00:42:47
transmission U projects are completed
00:42:51
because you know the every day because
00:42:54
of the new solar plants coming
00:42:57
up the the requirements are getting
00:43:00
bigger and bigger but we have no
00:43:03
absolutely idea about how many projects
00:43:05
are there today we only know about how
00:43:09
many tenders are there you know so we
00:43:12
don't keep track of the transition
00:43:20
projects thank you ladies and gentlemen
00:43:23
that was the last question I now hand
00:43:26
the conference over to to subad MRA for
00:43:29
his closing
00:43:31
comments uh I would like to thank the
00:43:33
management for giving us this
00:43:35
opportunity uh to host the call today
00:43:37
and for spending so much time with us
00:43:39
answering these questions uh may I now
00:43:42
hand over the call uh to Sir for his
00:43:45
closing comments thank you uh thank you
00:43:49
every much everyone for participating in
00:43:52
this conference call and uh we really
00:43:57
thank you all for your good wishes for
00:43:59
our good results thank you very
00:44:02
much thank you on behalf of Nama wealth
00:44:06
management limited that concludes this
00:44:08
conference thank you for joining us and
00:44:10
you may now disconnect your lines thank
00:44:13
you
