Glass Wall Systems (India) (NSE:GLASSWALL) Q2 2027 Earnings Call

0:00 Ladies and gentlemen, good day and welcome to Glass Wall Systems India Limited q two FY twenty seven earnings conference call hosted by Motilal Oswal Financial Services. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. I now hand the conference over to Mr. Singh from Motila Local Financial Services. Thank you and over to you, Mr. Singh. Good afternoon, everyone, and thank you for joining this call. We have with us today, mister Ishaan Hemrajani, managing director and CEO, mister Amit Hemrajani, director and mister Sandeep Sawan, chief financial officer of the company.

0:52 With this, I hand over the call now to the management for their opening remarks. Over to you, sir. Thank you, Sandeep. Hi. Good afternoon, everyone. It is a pleasure to speak to you all again. This is Isha Nilirani here and the MD and CEO of the company. This is our second call post listing for quarter two, and I would like to brief and update all the investors as to what has happened in the previous quarter and what we see is going to happen ahead with the business. I would start off by saying that from an industry perspective, we are... Just to recollect quickly, we are operating in the domestic business where we are working time in India for graded developers of the country. We are also having export business that we do in terms of the product supply to US, Australia, and other countries.

1:48 And we also have a luxury fenestration now where we service high end residential projects for all of this is for the facade solutions, which which is the primary business that the company does. So maybe I can give you all a quick update of what we see is happening in the domestic and other markets in... From a demand perspective. I... For the domestic market, what we see today in in all the tier one cities of the country is tremendous demand in terms of the new projects that are getting built on the commercial side as well as the hospitality side as well as the residential side. So in terms of what projects are getting launched, I see that there's a there's a huge traction today in the domestic market. So so we... Our pipeline in terms of orders that we are bidding on the domestic side remains huge and handy. So we see huge traction from the domestic segment as the market continues to grow.

2:54 On the export segment, again, the demand remains strong. If there are some challenges right now considering the ongoing war, disruption to shipping, disruption in prices of commodities, so especially the elections, the midterm elections in The US. So we see that there is certain... I would not say a complete slowdown, but there's definitely some prudence around the international business where developers in in The US and other countries are holding till there is some clarity or maybe a little bit of normalization of prices around the container cost and also commodities. Right? So it is obviously linked to how the war is going in in Iran and US.

3:44 So while that market is used and remains tremendously used for us, right now, we are seeing that a lot of jobs that are basically on the table to be launched are right now getting held back to a certain extent in order for some sort of clarity to come across the war and the commodity prices. As a long term view on this market, I think there is no doubt that this will remain one of our biggest traction factor and one of our major diversification factor. But I was in The US and Canada and Israel, So I found that at least in US right now, people are a little bit cautious about launching new jobs.

4:29 That is not reflection of our performance. That is not reflection of our cost competitiveness. That is just how the market currently is with all the uncertainty around shipping and the other costs. Right? We are also exploring a relationship into Israel, and that we find is very attractive. We had a very good trip into that country. We are discussing with the company for potential jobs. And we see that maybe in quarter three and quarter four, we should have some sort of a order booking into Israel as a start of entry into that market. So that market looks very promising as a first time as a first time view for us, and we expect that we should be able to convert some jobs in the next two quarters.

5:22 Even in The US, we we are continuously bidding on jobs. I think there should be a couple of jobs that should get awarded to us in the in the... In quarter three and quarter four. So while there are some challenges specifically on The US side, I find that for next year, we should be sorted from a new order standpoint even from US and maybe to start within this drive also. The third business is obviously the luxury penetration side, which is high end residences and high end residential projects. I think this particular segment is looking very promising. We have decent orders today on on this segment, and I... We are bidding on luxury projects in in in Delhi and in Mumbai.

6:17 And, you know, there is a huge market and traction around the premium penetration products. So we, again, expect maybe in q three and q four a decent amount of order booking, substantial order booking in this particular segment. So as a whole, in terms of the pipeline and how we see the market, the domestic market, both on the commercial and residential side, as well as the luxury penetration side, seems extremely promising. And on the expo side also seems promising, but I think it is... It it... There are certain headwinds right now that we are experiencing. Our order book as of September end stands at around $9.57 crores. We have booked around 291 crores of orders since the beginning of this financial year, and our expectation around order booking would be close to 500 crores and maybe more in the next two quarters.

7:17 So that will give us at the end of the year a good eighteen month visibility in terms of the orders that we will have in hand at the end of this financial year. So there's data confidence around at least new jobs coming in at the margin profile that we have we have been achieving historically. At the same margin profile, we are confident that we will be able to book jobs in the next two quarters, right, to maintain the eighteen month visibility that our business requires. In terms of how the h one results have come through, I think it is it is fairly encouraging. Our s one year on year from last year saw revenue growth of around 16% at 239 crores.

8:04 Our EBITDA percent... EBITDA margin percent has increased to 25.3%, and in absolute terms has increased by around 22%. Our tax margin has remained in the same same sort of an the same sort of a region at around 19.6% as on as on h one of twenty seven. So from a margin standpoint and a revenue standpoint, the quality of the business remains the same and and good. We have also mentioned in the last last earnings call that from this this particular year, we have started including freight as an income and as well as a cost for our export clients in order to help them get better deals on transportation.

8:55 So just by that nature, there is definitely an equivalent amount of revenue as well as income added in in the first two quarters. If we adjust for that freight, which is just a pass through for us, the margins look better, obviously, in comparison to... Along with the freight. So if you adjust for freight, our EBITDA margins would have been 26.9%, which is this is a decent growth from last year h '1. So what I'm trying to say in summary is that the margin profile of the business remains strong. Revenue has grown 16% from a h one twenty six to h one twenty seven basis.

9:41 And as we discussed on the last call, q three and q four are going to be much stronger for us because there are a couple of projects that are going on full speed in our factory and on our sites today. So the guidance around the revenue growth for this year remains the same as it was last time that we expect to grow at between 20 to 22% in terms of the revenue while maintaining and sustaining the same margin profile for this year. So I don't think there is anything that I want to suggest that is going to happen for this particular financial year. In terms of the glass processing unit, maybe I can speak about that a little while.

10:26 That is why we had raised the primary money on the... For the IPO. So that particular project is progressing very well. We are already in a advanced stage of civil construction. The building material has just started coming into our factory today. So we assume all the orders for the machineries have already been placed. The advances have been paid out. So we are on track in terms of the we are on track in terms of the timeline of delivery of the glass processing unit. And we are confident that the guidance that we have given that maybe July, August of next year, we should be able to commission this plant. Right? So that particular subject is going on on track.

11:12 That will obviously give us more control over our supply chain, and we are estimating at least one one and a half percent improvement on our EBITDA margins. Right? Which will be in effect maybe towards the quarter three and quarter four of next year. In terms of... So in terms of the Israel visit, I I told you all that it was quite positive, and we see that we should be able to book something in the next two quarters. Overall, I think the business is looking strong. We are continuing to work hard. We are continuing to do what we've been doing for the past two, three years. So I think no reason to change any sort of guidance for this year and even for the next year. Right? So I think that's all from my side.

12:00 I'm going to hand it over to Sanjay Sawan, who's our CFO. Maybe he'll speak a little bit about the numbers, and then we can open it for a question answer session. Yeah. Thank you, Lisa, and good afternoon to you, everyone. Let me now take you through the key financial and operational highlights for the h one FY twenty seven. For H1 FY twenty seven, revenue from operations two thousand two thirty nine crore, registering a strong year on year growth of 16%. The revenue mix was as follows. Revenue from domestic business 2,000 rupees 140 crore, up 33% year on year basis, driven by the strong project execution. Revenue from international business 2 lakh rupees 76 crores, down by 14% year on year basis, due to timing of order execution.

12:48 With delivery schedule over the coming quarter, as we encourage everyone to assess this business on annualized basis. Then revenue from sanitation business stood at rupees 22 crores, up 2082% year on year, driven by the rising demand from the luxury residential segment. EBITDA for 2021 came at rupees 60 crores, reflecting a growth of 22% year on year basis. EBITDA margin stood at 25.3%, expanding by 138 basis points year on year basis. For H1, if we adjust the freight cost, which is said that the freight is adjusted as income as well as expenses. So, if you adjust for the freight cost of 14 crores from both revenue and the other expenses, EBITDA margin will have been 26.9%.

13:36 For FY FY '21, profit tax prudent is 46 crores, representing the growth of 13%. So, past margin remains the 19.2%. So, as on September thirtieth September twenty twenty six, our total order book stand at $19.57 crores and we expect this order to be delivered over the next eighteen to twenty four months. This is all from our end and now we can open the floor for the Q and A session. Thank you very much sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask questions, may please press 1 on the touch tone phone. If you wish to withdraw yourself if you wish to withdraw yourself from the question queue, you may press star and 2. Participants are requested to use only handsets while asking a question. We'll wait for a moment while the question do assemble. You may please press 1 to ask questions.

14:39 The first question is from the line of Harsh Kothari from MK Securities. Please go ahead. Yeah. Hello. So am I audible? Yes. You are audible, Harsh. Yeah. Yeah. Also, yeah, thanks for the opportunity. So, yeah, as you mentioned that there's some lesser clarity in the international business due to the war and the election thing. So what I wanted to know that, like, in the last call, you mentioned that our q three, q four is going to be substantially well because of the order execution that is going to happen in our international business. And as far as I know, it's mostly related to The US business. So I wanted to know that other customers denying for the orders which we already have, or is it related to the new orders which we are getting? No. It is not related to the existing orders. The existing orders are on the floor and getting dispatched on a daily basis.

15:30 So there is no question of any stopping on the existing order. What basically happens in The US is the job has to be funded a 100% before they start the job building it out already. So all these jobs which are already on the floor are funded. So they are going in and going to happen as planned. And hence, we are saying that q three and q four is going to be very strong. What is happening on the newer job days that even though the funding is done, the developers that are holding for a certain time until the prices normalize a little bit. This happened during COVID also where there was a lot of jobs that were there at the last, like, the 95%, but they wouldn't start the job. And post COVID, we saw a huge influx of jobs because everything came at one time. So I see a repeat of what has happened during COVID happening now where there is huge demand of residential and commercial products in The US.

16:25 Developers are... Have everything lined out, but are holding for maybe some time if the prices normalize. And all you could probably see is after this midterm elections and maybe if the war stops, that there'll be no pent up demand coming all at once because all the jobs will go at once. So it is not a question of the existing business. It is a question of what we see upcoming in the next year or two. Okay. So you mean your q three, q four is going to be good as you said in the last call or according to the... Okay. And It is obviously with this q three q four. Yeah. Okay. Yeah. And, like, the domestic business also of penetration, it's looking good.

17:10 Like, I mean, I... We see a good growth in the first year compared to the last half quarter. So we are seeing a good growth in the business. Are we expecting the similar growth year on year in the... Like, coming... Upcoming year as well? Yes. See, this particular segment looks very promising for us. Okay? We see that a lot of luxury residential projects are getting launched, and we are in a sweet spot where we are amongst the very few guys in the country who can cater to this demand. So while I don't look too much into a quarter to quarter 82% growth, I wouldn't want you to read into that too much because it is driven by project execution. But as an overall segment, I find that this penetration is usually attractive and can show exponential growth.

17:57 I I mean, maybe I can tell you we are bidding on a couple of projects right now as we speak, and I I said that we could have order booking in maybe the next... This quarter and the next quarter. And you would see that they are massive projects by size, you know. So and, obviously, at a better margin just by the nature of that segment that we are in. So I see that as a huge growth driver for us, maybe in the next year and continuing ahead. Okay. And my... Just my last question is the thing you said is the 500 is our total order book for the entire year booking or just q three, q four? It's q three, q four. So in q three, q four, you're okay. Months of visibility. So around $959.60 crores of which we will execute a decent amount, you know, 300 plus crores in the next two quarters.

18:49 A little bit more than that only, $3.50 crores in the next two quarters. So we have to book that and plus. So my guidance is around creating an order book at the end of the year to sustain for the next eighteen months. And I think we are very confident that we'll achieve that. Alright. So that's it from my side. Thank you so much. Yeah. Thank you. Thank you. The next question... Thank you, sir. We'll take the next question from the line of from Lucky Investments. Please go ahead. Just two questions I have. One around the order book since your company recently listed. So maybe you want to give us a trending order book in terms of what you started at the beginning of the year this year, and what will you end this year in terms of your calculations in terms of order book, And what was it last year when you started the year end?

19:42 Okay. So, Sanjay, you need to help me with the beginning order book of this year because I can I can take it from there? Okay. Beginning order book was the $3.83 crore. Last year, FY '26 in the 04/01/2025, we have order of the $3.83 crore. And the No no no second one second one second. April 26 company level order book. $8.40 No. No. No. No. Yeah. $8.46 crores. 8 Okay. Right? $8.46 crores was our opening order book as of April 26. What's this $3.83? What... This was what's this $3.83 crores last year as Sanjay Gupta said. Right? FY '25 was $3.83.

20:31 FY '5 was $3.83. FY '26, April 26 was $8.48. As of as of today, it is $9.57. And what I see as the closing order book as as a projected... Give me a second. And my second question around that is, whatever comments you mentioned on the market, etcetera, with respect to the Yes. Yes. Sir. So basically, so basically, you're the Yeah. So if you have a quarter of thousand crore and $9.30 crore size of order book today in hand and six months of execution, then your second half has to be a materially large revenue number.

21:25 Right? Yes. Okay. My other question is, is whatever comments that you made about slightly future ahead, which is also common with changes with time, but with respect to the order that you have today on the short floor and the order that you have to deliver to your client because the site is on, Do you see execution there smooth or better challenge? There is a slowdown in execution there because considering your revenue projection doesn't seem to be slowed down, but yet I am asking a clarification. See, I can... At the end of the day, we are a project business. Right? So right now, we... Right now, what I see is, as I told you, whatever orders we have on the export side are flying.

22:13 Right? There's no stopping that. On the domestic side, there are one or two projects that are going a little behind schedule, not from our end, but from the client end. But it is nothing material in nature. We're ready to flag up on this call. It is just normal course of business. Okay. This is this is good enough. And the material price rise, you tell me. Let's say aluminum price, section aluminum price, because that's a bigger component. How does that get factored in the execution? So is it a flow through or is it a inventory data that you do before execution? What happens there? You are asking in terms of the base price application of aluminum.

23:01 Right? Exactly. Right. So so I'll explain again. We have a pass through on aluminum and glass on all projects. Right? So Okay. So we have to collect all the invoices in in terms of what we have procured. The base rate is mentioned in the contract. And then there is a process to be done with the client in terms of doing the math around what needs to be passed on. And once that is done and we raise the invoice in terms of a claim, that gets paid off to us by the client. Right? So this is how we are doing, and we are, in that sense, risk free from a commodity pricing across the projects that we are doing today. Okay. Okay. Thank you very much, and all the best, sir. Thank you. Yeah. Thank you,.

23:50 Thank you. Thank you, sir. Ladies and gentlemen, in order to ensure that the management will be able to address questions from all the participants in the conference, kindly limit your questions to only two per participant. Should you have a follow-up question, please rejoin the queue. The next question is from the line of Priyanka from Bank of India Mutual Fund. Please go ahead. Hello. I hope I'm audible. Yes. Yes. You are. Hi. Yeah. Hi. So three questions from my side. Firstly, what percentage of our contracts are currently cost plus? And specifically, this quarter, how much of the escalation revenue booked represents a prior period catch up? Great. So I'll answer that. None of our jobs are cost plus.

24:38 All our jobs are remeasurable item based contracts. The only difference is that based... Even even though it's an item based contract, there are protection clauses around the commodity prices, specifically aluminum and glass. So we get the spec of a job. We quote for that spec, and we quote for that quantity. So the quantity changes or the spec changes, our price changes. And and as I told you, there is protection in terms of the base price of aluminum and glass. So we declare what we have held in the court in terms of the aluminum pricing. And any change that happens, we submit the relevant backup documents and we get paid. So typically, that process takes some time.

25:28 So so, like, for example, in this quarter, those claims got certified, right, for Bargmanni and a couple of other projects. But the cost was incurred in the previous quarter. So this is, again, normal course of business that just by the virtue of time taken to establish that claim, which is typically maybe anywhere between forty five to sixty days. We hold the cost in that time, and then it gets reimbursed to us. Okay. Okay. And second Does that answer your question? I'm happy to give more clarification if you have a... If you have any doubts around this. No. It does. Thank you. And secondly, on the glass processing unit, so what are the key milestones remaining before it becomes fully operational?

26:17 What is left? So we are right now on an advanced stage of civil construction as we call it. We are we are casting the print beam, which is, the base of the civil. The PV structure, which is the building on top, the material has started coming in. So in terms of how far along are we on the physical construction of the building, I would say fairly far ahead. Right? Maybe next two to three months, I think we should be through with us, civil and the factory construction. The next milestone is the machinery coming in, the installation of the machinery, and commissioning, which we find that maybe starting from now within the next six months, all the machinery should be available with us in the factory. Then there is a period of installation and commissioning.

27:06 So all in all, we are looking at maybe July or August of next year end for the factory to start in a full fledged fashion. Till then, it will be this milestone. So civil construction, machinery alignment, and then installation and commissioning. Civil construction, maybe next two to three months, machinery alignment next six months, six to seven months, and then commissioning and installation, another two to three months. So we are looking at around... Maybe around eleven odd months from now, ten, eleven months from now. Okay. And one last one, if I may. So what could be the expected revenue contribution from this Israel pipeline?

27:52 And also the ongoing U... US bids that we spoke of, like, are they targeting existing relationships or new client acquisitions? They're doing both. We'll speak about Israel first. Israel, I was... I think the last call I was there, it was... Looks very promising. There's a lot of new construction happening in that country, and they are short of capacity. Right? So they are looking at us as an extension to their capacities. Right? So there are big jobs that they're bidding for. I... And we thought that they will start with us on a smaller job. Maybe below 50 crores, maybe. This is what I see. Or and... But once we have sort of the first drop through, I think that job sizes in Israel are are huge. So so from maybe a two year look ahead, one and a two year look ahead, I see that there'll be big jobs coming from there. Right now, as any relationship starts, I think they'll start with us maybe with a...

28:56 Something in the range of 50 odd crores to start it. In The US, again, the jobs are massive. Our clients, current ones and new ones are bidding on a lot of jobs. It is just like built up demand, which could open up at any time. So when that does, I think it will be it will be huge. Do I see that happening maybe in the next quarter or so? I I feel like we should be able to get a couple of jobs over the line. Okay. Okay. Thank you. Thank you. The next question is from the line of from from Asset Management. Please go ahead. Hi,. Hi,. Good morning. Yeah.

29:45 So I have a couple of questions starting with the escalation. Would it be possible to quantify the absolute amount or the benefit that you got in this quarter because of these fees? 6 crores. 6 crores. Okay. And do we expect them to, you know, come ahead? Because I think some inflation was there in last one or two quarters. So do we expect this to Of course. In a game? Of course. There'll be some contribution on a on a quarterly basis around this. Because each each and every mind, there was... Whenever the project reaches that milestone, we'll put the claim in. The cost would be incurred in the... In his seat. Okay. Got it. Secondly, I think you mentioned that you are looking for a 500 close-up order inflow for the next two quarters.

30:34 Would it be possible to give a split how much will be coming from domestic exposure penetration? I would not like to comment right now on that, but I can tell you that there'll be a decent amount in all three sides... On all three sides. But maybe we can connect later, and I can give you sort of a breakup because that will be... Because we are bidding on big jobs. Right? Today today, my order pipeline that I'm bidding on on domestic is upwards of 3,000 crores. So the the real question is, and I've said this before, is for us to choose the right job with the right execution timeline and at the right margin. So today, we are in that zone that we have to pick the right job. And if I have a good job in the domestic side, sure. I'll go ahead and book it. If I have a good job on the penetration side, I'll go ahead and book it. So this is this is what we need to do in terms of 500.

31:31 We have a huge pipeline that we are bidding for. What job we want to convert depends on what the deal on the table is. The idea would be to pick up some on either all three segments. This is the aim. Understood. This this sounds encouraging. Just last thing from my side, I think you haven't mentioned this before that q three q four will be a very strong, you know, level of growth for us. So just a clarification from my side, you know, the kind of revenue we have done in h one f five twenty seven, If I extrapolate, can see maybe we can do a further 3% top line growth in h two f five twenty seven. So just a clarification on that. That should... That is ballpark accurate. Correct.

32:17 Got it. Got it. That's it from my side. Thank you so much. All the best. You. Thank you. Thank you. The next question is from the line of from Pinpoint x Capital. Please go ahead. Thank you for troubleshooting. Sir, can you what is the Okay. Demand planning sector for quota construction, eight, quota data from the build out? What is the demand inquiry there? Sorry. Sorry. Sorry. I missed that question. Can you repeat again, please? Yeah. How is the demand inquiry from segments like hotel construction or airport construction data center build out for India and over the globe? That's a super question. See, in this past quarter, q two, we booked a hotel project in in Mumbai. Right? It's a it's a close to a 90 crore job. And we booked a data center job... Two data center jobs in South Of India, which is around $35.40 crore. Right? So both these segments look encouraging.

33:16 Data centers for us is is going to happen, but I wouldn't expect some crazy sort of a demand on data center because just by the nature of that building, facade is something that is only done in a data set because there's no occupant in that building. Right? So the product spec on the data center sort of buildings is very different to what you'd see on a commercial building where there are active occupants on the inside of the building. So why certain data center guys do it is to have a better aesthetic on their assets more than the function requirement needed on data center. Right? So while we have done data centers in... Even in the last year and we continue to book data centers, I would imagine that that is...

34:01 That will continue, but not at not at the rate at which data centers are being built in the country. It will be a few jobs here and there. On the other hand, hospitality seems very promising for us. I think huge development there on the hospitality side, and same again on the commercial side as well. Sure. Thank you for this. And one more question is that, what is the level of BIPV for a channel adoption as part of sector industry growth rate? Because there's some kind of happening of BIPV solar adoption by commercial Yeah. BIPV is a big thing. It's a thing of the future where we are going to put solar panels on on on the face of the building. So we are already in... Our r and d team right now is working on VIP with technologies where we can use our machinery for glass and incorporate maybe a machinery... Additional machinery for VIP and start sort of producing it, you know, as as a glass wall product.

35:01 So right now, as we speak, there's our r and d team working across BIP. I find that maybe from a five year standpoint, BIPVs will be used. So we are trying to get ahead of the curve in India, because... And be the only person today who who would go into active manufacturing of BIPVs for architectural designs. We are exploring this angle right now. Sure. And final question is that our company is very strong in facade system and penetration. So whether we have capabilities to provide architecture for this to the same builder if they come to us to provide a... Whether they are a need of architecture service, whether we can provide them the service to them in addition to the facade and penetration? No. I don't think we can do that. We are not architect by profession. We can give them con... We give them consultation around the facade elements with regards to their architectural intent.

35:54 So we do a program called as a design assist program where we pick up from the building architect and suggest them solutions around the penetration solutions. But as a whole trade of doing an entire architecture of a building, I don't think that is that is our key area of business, and I don't think we are venturing into that sort of a zone. Sure. One one final clarification. I'm sorry to interrupt you, sir. Sir, would request you kindly rejoin the queue for follow-up questions. There are others who are waiting for their job. Sure thank you. Thank you. Request to all the participants to kindly limit your questions to only one per participant. Should you have a follow-up question, please rejoin the The next question is from the line of from CCB Fund. Please go ahead.

36:41 Hi, sir. Good afternoon. So my question is on the margins specifically for q two. If I compare the revenue from q two last year versus q two this year, so it is almost flat, but margins have increased tremendously, like, EBITDA margins and the past margins, specifically for q two this year. So what what is the reason for the increased margin, and are these margins sustainable? No. So, again, I would encourage this entire investor community that we have today on board to look at the business, first of all, from a yearly business... Yearly standpoint. Right? While we can look and then went to the quarterly numbers, and I can provide you answers, At the end of the day, I think... Because this is a project business, it is milestone driven. So when you ask me a specific question as to the revenue was flat, but the margin has increased, there are two things that have contributed here.

37:32 Right? One was the escalation claim that has gone through in this previous quarter. Right? For which cost was incurred earlier. So there has an impact in terms of the margin percentage due to the revenue being recognized in this quarter, but the cost being recognized in the previous quarter. Right? There is also elements around the product mix. Right? Penetrating, you see, has grown at a decent amount on a year on year day... On a quarter on quarter, something only basis, time point, which is a higher margin business for us. So on account of that revenue being done greater, there is a greater contribution to the bottom line also. So between the two things you see that there is a spike in the margins in quarter two.

38:20 Okay. There is no margin on a yearly basis. Our guidance still remains the same that you deliver between 23 to 25% EBITDA and around 18 to 20%. I think at a consolidated level, that guidance doesn't change. Thank you. The next question is from the line of Ankur Kumar from Alpha Capital. Please go ahead. Hi, Ankur. Hi. Hello, sir. Thank you for taking my question. Sir, in terms of Ankur, one second. I mean, I mean, we'll take we'll take as many questions as possible here. Let them... Let it go. If you are not in a rush, I'm not in a rush. I'm happy to answer everyone. Yeah? Okay, sir. No need. Yeah.

39:05 Yeah. Please go on. Yes. Actually, in in last TV interview, listening, and you you guided for $5.90 per dollar of revenue for this year. Am I right on that numbers? I don't know. I don't think I've spent out a number in that clarity, but I have always promised that the growth in terms of what we've done historically is at around 22 odd percent in the past year, and we would be in that ballpark. Oh, got it, sir. And, sir, second half, can... Would you like to give some closer... Better number in terms of growth, etcetera, what what are we should be looking at? I would like for it to be a positive surprise, but I can tell you that 02/03 and q four is going to be strong. There were previous questions around what percentage of growth, and I think people have done the math that it should be.

40:00 We are obviously looking at definitely 22% growth as of last year. So I think it's an easier math for anyone to do because we have last year numbers. Got it. And, sir, on this margin volatility, is it like export mix is much higher this quarter and that is why margins are higher? And how how should we look at that? I mean, not necessarily. Yes. There is a contribution towards certain segment being at a slightly greater margin than the other. So as a result of what we executed, definitely, the margin could go up and down. Then as I told you, there are certain claims that go through at certain times, which could represent the spike in margin. But at the end of the day, to see at a consolidated level, this business is fairly stable because we know at the end of the day what we are going to deliver with certain spikes and certain values also, you know. So that's how I look at this... Look at our business.

40:56 And full year, we expect margin. Yeah. Yeah. Please go on. A full year, we expect, like, last year's margin or, like, 25% type margin for for this year? No. No. Like last year. 23 to 25% EBITDA. Got it, sir. Got it. Thank you, sir. Thank you. See, our working capital is strong. We still have cash in the bank. I was seeing my working capital days has now become negative nineteen days. Negative nineteen days. So the quality of the business remains strong. It is only a question of executing the job which we are doing, and that depends on what the project schedule is. And you expected 500 per order order we also into which? Yeah. Yeah. Yeah. I'm I'm quite highly confident about that. Yes.

41:42 Sure, sir. Thank you. Thank you. The next question is from the line of from. Please go ahead. Hi,. How are you? Yeah. I'm great, sir. Hi,. Just a couple of things. What is your current capacity utilization, and what kind of peak revenue can you do from the current capacity? I think the sustainer growth of around 22% year on year, I think for the next four years, we are starting. Right? Today, my capacity utilization is around 50 by 60%. So I think revenue, we are looking at thousand plus crores of revenue happening from the same facility without material CapEx to be done. Okay. Then what would be your CapEx plan including the maintenance CapEx for, say, this year, next year?

42:34 So the... Obviously, the major CapEx is the last processing for which we have a project cost of around 70 odd crores for this year, raise money. So those monies are kept separate because they are going to be deployed there. Right? Apart from that, our CapEx plan is as we are doing it, we bought out a couple of machineries. I wouldn't imagine it to be about 20 crores in the next year and a half, two years. Okay. And, obviously, that would be funded through internal accruals. Don't see an issue in that at all. Okay. And and that that... This 20, 25% revenue growth that you are targeting, I assume it is excluding the freight cost which you are booking it as a revenue. Of course. Freight freight cost excluding the freight is just a pass through. Right? Tomorrow, the container cost drops down to $4,000, and I get bunch of new jobs. But that that that that will also show a decline in revenue. So whatever I'm talking is net of freight.

43:30 Yeah. All the revenue growth and the margins, everything is It's all it's all net of is all net of freight. Net of freight. Freight, so we are doing it to help our clients out. Tomorrow, they want to go back to a next work. I'd be more than happy to go back to a next work. Okay. And typically, ticket size of orders you are looking at currently and how is the market? I mean, there a market for a $102,100 crore kind of order book... Order ticket size? Or they are in that 25 or 50 crore range. So what is the range for you to do? No. Now the standard... Maybe five years back, the job range was maybe $50.60 crore. A 100 plus crore job was considered to be a big job. Today, I see that that 100 crore has become a normal...

44:15 80 to 100 crore job has become a normal sort of a job. Right? So we are seeing average order sizes upwards of $60.70 crores today. So... And and there are jobs that we are bidding for 400 crores also, 500 crores also, single job. So the job sizes have increased. The scale of development in the country has increased. So the job sizes are becoming larger. Okay. And other than The US part, which you mentioned that there was a a slowdown, which you are looking at that too for a short period of time. But any other risk which you foresee for your business in the near term? See, I I would put it this way. The reason why we operate in three business verticals is to be risk ourselves from such kind of scenarios. Right? So today, maybe US is looking a bit slow because they're waiting on things. But on the other hand, my domestic had a good margin is looking extremely solid.

45:13 So the question of us struggling on account of US maybe having a temporary slowdown is no big deal because our capacities across design and manufacturing are fungible. So I'd be more than happy to pick up the jobs in the domestic side of things and and wait for the right time to pick up the export jobs. I'm not saying that we are not going to pick up jobs. I... As I said earlier, we are expecting that some jobs should come through in quarter three and quarter four, but that doesn't mean that we will have residual capacity left in my factory on account of one business vertical not going very strongly. Right? So so there is no issue around those things. Okay. And lastly, you know, the margins in your international projects are relatively higher as compared to the domestic one. So going forward in in the coming years, are you expecting this export contribution to go up in your product mix?

46:10 And and also the Fenestration, which also has a higher margin. So the contribution of that segment also going up in the total revenue? Or you believe the Oh, 100%. With the... Sorry. With the three year view, I see export and penetration being solid growth drivers for us. Okay. So there is some margin to And, obviously and, obviously, the export is a product business, which is fairly scalable, and the penetration is is is a high margin for our business. So I see that both these verticals will be strong growth drivers for us. Having said that, even today, the domestic product that we are doing is not at bad bad margins by any means, you know. We are getting decent amount of value added even on the domestic segment.

46:58 And so then that we are bidding now are at excellent margins, you know. Some maybe at par with export or maybe slightly better than the export margin also. So I wouldn't discount the huge domestic growth story that we are having today because there are not enough good players in the market. I think the margin that we can enjoy is fairly decent even on the domestic side, even on the commercial domestic side. Oh, okay. That's it. Thank you. All the best. Thank you so much, Ankit. Thank you. The next question is from the line of Rahul Maheshwari from Ambet Investment Advisors. Please go ahead. Yeah. Hello. Good. Yeah. Hi. Hi, Ashan. Thanks for the opportunity and good set of results. Just two couple of things. First, as you mentioned that the pipeline is there for 3,000 crore, and now you're cherry picking the orders. Can you explain in more detail that what kind of orders are you cherry picking in terms of margins, in terms of... And how big the sizes increasing?

48:04 And this year, are you trying to close that thousand crores? Can this funnel size be increasing to what level in the coming two, three years? So while I don't want to name the projects, like, by name, because I... That would be a... I'm not naming it. I'll do that. But but I can tell you, like, there's a job in Mumbai that is a 400 crore bid. There's a job in Amravati, which today, to be honest, has a stand alone job with a 4,000 crore bid from our side. But, obviously, it will be split between a couple of guys, so we don't expect that to go to one person. So the sizes, there's a drop in Mumbai right now on the penetration side that is 85 crores plus job. There's a drop of penetration in Delhi that is a 450 crores quote. So among that... Then there are jobs in in the range of 100 and 150 crores that are settled in nature, settled in in...

49:03 I was just attending a client call before this call, and it is for a leading developer in the country in in. And our bid is a €225 bid. And the guy has called me straight up and said that, you know, this is the price. And if you can match it, I'm happy to give the entire thing to you. So when I say I'm going to cherry pick is is a bunch of things. Right? It has to be the right client. It has to be the right terms. It has to be the the right margin profile. It has to be the right execution period. I don't want to build up an order book. We should not build up an order book which is not executable. Right? Give or take a couple of months here and there, those orders should be good to go. Otherwise, you have a order book which does not go. So when we specifically see all these things, and then we go for the right job. And even if then we have to, you know, sort of make a deal, we make a deal.

49:57 Right. Right. So... Is is it... What can be the win ratio? Suppose there's a pipeline of 3,000 crore is in there, what we should assume that going forward on a foreseeable future, not just for FY '27 or '28, what kind of win ratio the company can have when the pipeline is in don't look I don't look at it as from a win ratio standpoint. The pipeline is obviously huge. If I were to drop my prices by 5%, I'll get all of the 3,000 crores orders tomorrow itself. So the question is not how much I'm converting in terms of a percentage. What we look at is is, I think, what we discussed earlier in the call. If I need to maintain eighteen to twenty four months of visibility, which is typically the timeline of the project execution, and I know what I'm going to execute in this year. I know how many orders I need to win at a minimum.

50:50 And my focus is only to first get that eighteen to twenty four months of visibility. There is no point for the company today to build up five years of visibility because then we'll be doing injustice to the project schedule. So as opposed to talking about a win ratio percentage, which I have and I can give you, but we don't look at that too much. We look at, okay, we need to book at least 500 crores of jobs in the next two quarters so that when we are sitting in FY '27, April 27, I know our visibility for the next eighteen to twenty four months. Right. And as you mentioned, your working capital has become negative. Should we say... Is it fair to assume that going forward basis, across cycles, it can be on on a negative... I won't hold, see, every quarter, it should be negative. But as a direction... I wouldn't promise I wouldn't promise that.

51:41 Last year, we had forty four days working capital. Today, we are on minus. See, I I would like you to assume that the working capital base is going to be around forty five days. Got it. Anything anything below that, anything better than that is a bonus. Right. And just last question from mind as your client has... Or customers have asked for that straight cost to be born and then recover back from the customer. Does this involve a bit of working capital? Do you recover back from the customer, but it happens in a lag manner? So is it a little bit working capital related that causes to the company, or it is very minuscule and negligible for you guys? This is, me. Sorry, sir. Your voice broke. Can you repeat that line, please?

52:30 Andrejeet, can you hear me? Yeah. Yes. Yeah. So we are getting advance... Yeah. Please go on. We are getting the advance against the freight cost. So there is no new working capital blockage on account of freight cost. Got it. Got it. Thank you so much, sir, and best wishes to the entire team. Yeah. Thank you. Thank you. Thank you. Ladies and gentlemen, that was the last question. I now hand the conference over to the management for closing comments. Thank you, and over to you, sir. No. Thank you so much. I mean, I think I would like to thank everyone to whoever has come on this call. I reiterate we... The business remains strong. The principles remain strong. The next task was promising, and I would encourage such conversations obviously in the future. And I'm happy to answer all sorts of questions and queries around around our business. Thank you so much once again for being on the call. Thank you.

53:27 Thank you, sir. Thank you, members of the management. On behalf of Motila Lutzell Financial Services, that concludes this conference. We thank you for joining us, and you may now disconnect your lines. Thank you. Thank you.