Jash Engineering (NSE:JASH) Q1 2027 Earnings Call

0:10 Good afternoon, everyone. I'm Siddhesh Chawan from Ernst and Young, and I would like to welcome you to the JASH Engineering q one FY twenty seven earnings conference call. To ensure a seamless experience, all participants are requested to remain on mute during the management's opening remarks. There will be a dedicated q and a session at the end of the presentation. If you wish to ask a question during the q and a, please select the raise hand option under the reaction tab of the Zoom application. We'll call out your name and then request you to unmute yourself to ask the question. While asking, please begin your name and your organization. Please note that this conference is being recorded. The recording will be made available on the website within the day, and the transcript of the call shall be made available subsequently.

0:58 To take us through the results and to answer your question today, we have the top management of Jash Engineering Limited represented by mister Prateek Patel, chairman and managing director, mister Dharmendra Jain, chief financial officer. Now I would like to draw you... Your attention to the safe harbor related to today's earnings call. Comments made during the call may contain forward looking statements that may involve known or unknown risks, uncertainties, and other factors. It must be viewed in conjunction with our business risks that could cause future result performance or achievements to differ significantly from what it is expressed or implied by such forward looking statements. After the end of this call, if you need any further information or clarification, please do get in touch with us.

1:45 With that said, I will now hand over the call to mister. Over to you, sir. Good afternoon, everyone. Thank you for sparing your valuable time and attending this call. I would now like to present the results for the first quarter. This quarter, we reported revenues of $1.56 crore, which is quite a significant improvement year on year by around 17%. And also our back has turned positive in comparison to last year.

2:34 So I would say the the improvement has been there or corresponding period in last year. Most important is that we have, during this quarter, also commissioned our foundry expansion as well as our gate and wall manufacturing expansion. This increases our capacity by up to 30%, and this will help us a lot in future in meeting our projected revenue targets. Our our order book also is quite healthy and is enough, I would say, to cater to our yearly target and would allow us by the end of the year to have enough overflow of orders to take care of next year growth.

3:29 This year, we now shift from India to our focus in America as well as in Saudi Arabia. As of today, it's funny that both these places are not stabilized. Saudi Arabia is still facing problem due to the Iran embargo of... On The Gulf, and The US has issues related to mister Trump changing his position from time to time. However, both the markets are important, and we have no other option but to be engaged with these two markets. As far as our long term growth and strategy is concerned, we are quite confident that we would be able to achieve our projected revenue target of 2,001 thousand 500 crores by 2031.

4:28 With this, I will now go to the results. Our revenue this year has... Quarter to quarter revenue has grown by 17%. It is not what I expected. I expected much better because the material which we produced for Qatar as well as for Singapore, we have not been able to ship. The Qatar material is stuck for now more than three months because of the Gulf crisis. Many other orders also of Middle East are produced and kept in stock because, we are not getting any vessels from India to ship to that region because of the conflict in that region.

5:16 In case of Singapore, we are not believing because, we have some problem about getting the payments. And so we we are adding on the side of caution by not dispatching the materials. If those things were have been there, these results would have been much, much better. Our gross profit margin... Gross profit as well as margin both have improved from last quarter... Last quarter of the same... Last quarter in same year... Last year. Our EBITDA margin also has improved as well as our EBITDA has improved. So I would say, overall... And the pad also has from minus 5 crore, it has gone to plus 5 crore. So I would say, overall, the quarter has been satisfactory, not as much as I would have desired, but it is still much better than what we were last year.

6:16 Next. On the stand alone basis, the two good news has been at Jash Engineering and at Waterfront. In case of Jash Engineering, the revenue has increased 21%, and our path has significantly increased in this quarter. In case of Waterfront also, there has been a marginal increase in revenue. But because of very high profitable orders we executed, we in profit in this quarter. And sometime back during the last meeting, I had said that this year, we expect Waterfront to achieve 5,000,000 plus in revenue with a significant profit, and we maintain it will happen.

7:12 As far as is concerned, there is no cause of concern. We are quite confident that this year, we will achieve our projected revenue in excess of $3,536,000,000 dollars and would be able to show profitability. What you see today is something which is the first quarter abuse, but I am sure that as the... As we progress in the other quarters, you will see improvement at also. I'm a little bit concerned on just process equipment, but now we are working intensively and engaging with them in a very detailed manner to see that this company is also showing good performance by the end of the year.

8:11 As far as our consolidated order book condition is concerned, our current order book stands at 932 crore of which India has 293 crore. And outside India, the order book is 639 crore, which is quite a healthy sign because the more orders we have outside India, the improved performance on the pack as well as EBITDA margins. As you can see, in case of waterfront, we have a 35... 34 crore order book. In March, 31 crore order book at $3.69. In Jash versus equipment is 29 crore, which is quite low compared to what we expected.

9:02 And it's just engineering is 559. If you add the orders, which we have already executed, the revenue till first... Thirty first June... June 30. And the order book we have today, you will observe that it is more than 1,080 crores, which means that it should be easy for us to meet our projected $908,175 crore revenue target, which I had informed in the last meeting. Next. Our pipeline of orders still is strong. We have already negotiated orders for 72 crore, and various orders were 60 crore are under negotiation.

9:59 Here, I would like to say that the under negotiation figure is only for those projects where the negotiations have commenced. We still expect more orders to be negotiated within this month, and we are quite hopeful of adding $2.72 crores something similar next month also... This month also. This shows our consolidated income statement. As you can see from quarter one of f y twenty seven and quarter one of f y twenty six, there has been improvement at all stages. What is quite heartening is that the gross profit margin which in q four and now is nearly same.

10:50 And, generally, in the q four, the gross margins are better. However, if we are able to get it improved in q one, then it gives a good feeling for the whole year. In view of this, I am quite positive for this year as I've already informed before. Thanks. We had given a sales outlook of 875 crore with revenue within India of $3.20 and outside India of $5.55 crore. As you can see from the order book and the revenue which we have realized in quarter one, this 875 crore target is easily achievable.

11:44 I hope there is no big issues like last year and that we will be able to comfortably sail through with these figures. Thank you for patiently listening to me. Now I'm ready to take your questions. Thank you. Gentle reminder to all the participants, to ask a question, please select the raise hand option under the reaction tab of the Zoom application. We will now wait for a moment until the question queue assembles. Oh, no. We'll take the first question from with. Please go ahead.

12:31 Hi, sir. Very good morning. Oh, very good eve... Very good evening. So got numbers. So my first question is, so why did we, not include the product level, you know, sales bifurcation, like percentage breakup and region wise breakup in the presentation? Ari, can you just maybe broadly give me that range? See, Gulnar, we had a long thought... I think, discussion with our IR team. And what we concluded was that this is the regionalized order booking. And product wise order booking is something which is very drastically changing from quarter to quarter.

13:18 More importance is when it is compared year to year. And so we decided to cut down on all that and show it year to year because it will lead to better comparison and at the same time, allow more time for question and answer. Okay, sir. So so if you can maybe give a breakup of maybe region wise, just a percentage of how much revenue was from the the domestic region versus international and international, how much sales was from US and the other rest of the world? Yeah. That we can give. However, it is already... The revenue figure is already given in the second slide where stand alone is there.

14:09 So that will be results last week. Last week segmental new one. Any Same. Same results. And in the results also, if you go on the website or on stock action, you can find out these details. Okay, sir. So now you will not be giving, you know, like, Europe, Far East, you know, US. So that... And UK, that will not be the thing going ahead. Now you will only give the consorted order book and segment wise... Entity wise order book. So all those data would have been year to year. So So year to year would be much decreased so that you can compare. Because, you know, when one big order is executed in a certain quarter, all the data gets skewed.

14:59 And out of one fifty turnover, 70 is in India and 18 out of India. Okay. So, Ran, my question on the quarterly margins, as you mentioned, we have done 60% margins. And I think last year during this time, Trump had announced tariffs and, you know, we were trying to book orders including the the, tariff amount and increased prices. So is this the benefit of that, or are we seeing, some manufacturing benefit that over here we are getting? So what is the impact of this? Both. If you're... If you recall, we had informed that we have got 5.6 or something like 5.66 as tariff refund. Refund. Yes. Yeah.

15:50 So, obviously, that has also helped, but it is a combination of both. So tariff refund is a part of the the the revenue, or what is it part of? Or does offset the Consumption. Cost. Oh, consumption. Okay. Okay. And, sir, how is the... As you also mentioned in your opening remarks that the JASH process equipment, which it has ship... Has Shepad and Westech. No. It's not... It is not Shepad. It is only Westech. Okay. Westech name has been changed to Jash. So Shepad has been merged with Jash Engineering completely. It was already announced before. So the... My two questions. My first is the the performance of Jash Engineering has benefited more because of the stand alone business or Shiv or Shivpod has also very small number of our total revenue. So it's... There's only 10, 15% of the revenues, not because of Shipad.

16:48 Okay. And, also, if you can throw some light on what are the concerns that you are seeing in, you know, the, JASH process equipment. See, whenever you acquire a new company, we we we have... We always think everything is very rosy at the time of acquisition. But once we acquire, we evaluate and we find we found out that their costing systems were a little different. Plus, the marketing was not aggressive and we were losing orders. And so we are making some changes. It is a transition period. It will take two, three quarters for us to come to, a clear picture on how to proceed further. But, but it's it's not going to be as easy as we thought in the beginning.

17:37 Okay, sir. Sir, I'll fall back in the queue. I have more questions. Thank you. Gentle reminder to all the participants to ask a question, please select the resend option. We'll take the next question from. Please go ahead. Hi, sir. Thank you for the opportunity, and congrats on a good set of results this quarter. So the question I asked was the new... I had was the new that you released. You also mentioned a data center opportunity. We just knew this time around. So why have we added that? Like, have we added... Developed any new products in this market, or are we, like, selling our existing product to new hyperscaler or India India data center, Yota, AWS, Microsoft, or So we are not supplying to them. We are supplying to their vendors.

18:37 The vendors who are doing the refrigeration or air conditioning, etcetera, or cooling, we are supplying to them. Point number one. Point number two, this was an existing product which has been modified and developed to suit data center application. So exactly not the same product, a deviation from that product. We were not aware of this market four months before. We were approached by various people, and we were shocked that the requirement for data center for this type of vessels is huge. We have first... We have got the first order for four numbers, and we are negotiating another order for 32 numbers. In fact, we have put it for more than 600 pressure vessels, enough to keep an... To make a new plant.

19:25 So it is an exciting development for us. It's a big business. But surely, we are lacking in capacity. But once we see sustained order flow, then we will think of what to do next. Got it, sir. And given the data center water requirements are mission critical, do you see these commanding better margins than your other segments? No. No. Multiple orders which we get it to? No. I don't think so because more... You know, it is as simple as this. More the volume, more the competition. So when we are talking of 600 pressure vessels, the type of competition would be intense. The margin profile would be the same.

20:15 Got it. Got it, sir. Thank you. And regarding Rodney Hunt, the $35,000,000 revenue target we have for the next year, like, how much part part margin are you baking in, and how much percentage of the revenue would be coming from the higher margin post tariff orders versus the legacy orders we quoted at the 25% tariffs? I will say the post tariff order, the... Both would be like the... With 40, 60%. 40% would be all old orders and 60% would be new orders. We we are expecting a bad margin of around six to eight, 9% range. Got it, sir. And when do you expect it to reach 10% bad margin we've targeted it? Would FY twenty eight be a realistic assumption to me?

21:13 I would say that this is too early for me to project it like that. And the reason for that is is mister Trump. Now if they are talking of putting 100% month... 100% tariff on countries buying Russian oil. And if that happens again, we would be in turmoil. So I would say, yes. If everything goes right, we should be able to do by FY '28. But, otherwise, let's keep our finger crossed. Got it, sir. Thank you. That's all the questions there. Thank you. We will take the next question from.

21:58 Please go ahead. Good evening, sir, and for a good set of numbers. So in the opening speech, you mentioned about some dispatch issue to Qatar and some payment issues from Singapore. So has those problem got solved during this August, September? And how do you see this going forward, say, in h two f r twenty seven? And Singapore, this payment issue, is it related to a particular client, or is it a general issue that you're facing over there? It is related to particular client. We have not got the old payment, so a large consignment we are not sending. In spite of having carry... Carrying an letter of credit, we are not sending because whatever was balance payment due for earlier consignment, we have not got.

22:49 And the the consignment for Qatar is stuck because of the Gulf War. Now when in beginning, there was info in between one month back around, we had an option to send it by... Through Saudi Arabia through Red Sea. But with the recent Houthi attacks on the Red Sea cargo, even that possibility is gone. Okay. So, sir, in The US, what's the current tariff structure over there? Is it 12%? Point 6%. 10% special tariff and 5.6 was the existing. So 15.6% is the current tariff there. Okay. And lastly, sir, on your CapEx and the expansion trend, what's the current status in terms of Saudi Arabia new plant which we are looking for?

23:41 See, in case of Saudi Arabia, we have already got all the permissions, etcetera. All the official permission required to set up a plant has been received. We have applied for land now. Once they give us some indication of where they are able to give us land and how much, thereafter, we have to go and sign the papers and then proceed further with project report and things like that. In case of America, the land is already acquired. We have just to finalize the contractor to build the plant. Okay. Perfect. Thank you so much, sir, and all the best. Thank you. Thank you. We'll take the next question from Sanju Marwa. Please go ahead. Hi. Good evening, everyone.

24:27 Sir, I just have one question, and you touched upon that point regarding this Russia sanction oil bill, which US Senate has passed. Assuming it it sees the daylight, what what is, you know, your plan of action, and what are your thoughts? I know it's early days. It may... I don't know which which way it turns, but if in case it comes, how are we planning for it, and what are your thoughts on it? So we have... If you see in the past, I've been telling you that we have been circumspect regarding taking the orders in in America. So most of the orders presently which we have are more towards manufacturing in America and not manufacturing in India. I would say around 70% are make in America and 30% are make in India.

25:22 If it was supposed to show, then we may have to manufacture more in America to work on that situation. But we'll see as and when it happens. Sure. So out of six thirty... No. Sorry. What was the number? Six thirty nine was the total exports order book. 300 something is in America order book. You can see from the slide. Three three hundred and something was in America. So 70% of that is what you're saying can be managed to a Rodney Hunt Is already planned. Okay. It's already planned. Understood. Understood. Understood. And what is... When I say 30% in India, it is 30%, means around India would be around ten ten, 12%, and then overall profit would make it 30.

26:13 Got it. And, sir, just wanted to understand, are you thinking on these lines in anticipation of these increased tariffs? Are you thinking of in... Of already increasing, you know, your pricing when you price it and budget it and send it to the customers? Are you already We are already doing it. We are all... Yeah. Yeah. We are already budgeting and doing it. So 15.6 is there. We are considering 25, but we cannot consider 100. Otherwise, we'll be out of the market. So we already have... Based on past year experience, I have already ensured that we are considering little bit more than what is currently applicable. And if if it is within that, then we have a better profit. But if it goes beyond that, then then there is a problem.

27:03 And just last one from my side, sir. In FAQs, you had mentioned that this year's back margin, you are... Earlier, you were saying 12 to 13%, but now I think post refunds and and probably the order book and the execution of q one, you are thinking 13 to 14% is what we should realistically bake in, right, from pack margin perspective. See, in the q one itself for Jash Engineering standalone, that margin is nearly 13%. For order front also, it has improved. So, yes, it is possible. But as I said, it it... We have to see from what happens. If if there is some another geopolitical situation arising and that results into another chaos, then we don't know. So I would say we we are in a position to achieve 13 to 14, but it depends as we progress in the year.

27:54 Thank you so much, sir. Thank you for answering the questions. Thank you. We'll take the next question from. Please go ahead. Thanks, Jash. I think by... You know, you had mentioned about some, change in the way you want to approach Maher machine bow and maybe do some manufacturing in addition to just the design. So give an update on how that's going, if there is an implication for margins. So Mahar, Mahar, Mahar, Mahar, Mahar, already are taking orders, but we are not manufacturing, and we don't intend to do manufacturing in Austria. However, the products of are now already... We have got first two big jobs in UK for those... For screens.

28:42 And these screens... Two screens are for the British market, and I think 14 screens are for Iraq. Mhmm. And some of these would be made in India, and some of these would be made in UK. So, yes, we have started taking orders in Mahmash and Mau, and the manufacturing would be rolled out in UK and India at this moment. I see. Thank you. And so second is this pressure vessels for data center. Right? We see slightly modified what you were already making to make it suitable for this application. So what was it being used for earlier? Is this... What was the core application that you were serving earlier? He was supplying pressure vessel for transmission lines.

29:30 Okay. For water hammer control, not for cooling. So there is a small difference between the two. Internal design differences are there, and it is... And frankly speaking, even we were not knowing that such a demand is there, but the client needed 16 vessels in four months, which is impossible for us to do. So he has split the order into three or four parts and given everyone four four vessels. And now that we know what type of involvement is there, if we are getting the second job, then we will rethink on our manufacturing infrastructure in Indore for this product.

30:20 I see. That's also. Thank you very much. Thank you. A gentle reminder to all the participants, to ask a question, please select the raise hand option. We will take the next question from. Please go ahead. Hello. Thank you so much for the opportunity, sir. I would like to ask that, you know, considering our q one has been for past couple of years, this year has been quite good for us. So does this revenue also includes the thirty five, thirty six crores, which you mentioned in q four that has been deferred but not booked as a part of revenue in q four. Does it It is is routine. Same thing happened in June. So it is now compensated.

31:05 It is whatever not done in March and revert whatever not recognize in June. Okay. So 2728, we have reversed it in June, and it did last year reversal. Okay. Okay. So my my question was more like operationally, are we... Would have been... We still would have been positive this quarter if this was not the case? Yes. Because 36 minus twenty Twenty seven. 27. So Twenty six twenty six. 26. 26. Seven. 27. It. Got it. So another question would be... So now that The US tariff issues are... For now has been, like, brought down... Cooled down. So are we seeing any increase in order order bookings from US?

32:00 Do you think that I should aggressively go for order booking when mister Trump is saying 100% tariff on India they imported Russian oil? Yeah. Right. We we we cannot. In fact, we are negotiating some very few of some orders which are are very big. Each order... Two, three orders and each order in excess of $7,000,000. And we keep our finger crossed that before we get those orders, this crisis is resolved. Otherwise, we'll be in a deep mess. So we are, ourself, not pushing for finalization of those orders. Got it, sir.

32:47 And, sir, could you please repeat again the timelines for the Saudi project, like, commercialization and trial runs? See, we we... Our timeline... Internal timeline is that we should be getting the land by end of this year, and we should be able to have the plant ready by end of next year. When I say next year is December 27. If we get the plant ready by December 27, then by end of the financial year '28, it should be in operation. Got it. Got it. March 28, it should be in operation. Both. That as well as Houston.

33:32 Both. Okay. Okay. Got it, sir. Thank you so much. This was my question. All the best. Thank you. We will take the next question from. Please go ahead. Hi. Thanks for the opportunity. Am I audible? Yeah. Yep. Congratulations on a good set of numbers, sir. Just two follow-up questions. Most of the things have been answered by you. So, sir, on the data center opportunity that you shared, the four vessels that we did, if you could quantify the size of the business and, similarly, once we get more orders, 30, 60, 80, whatever vessels we are anticipating, what could be the quantum of this this this business? So one vessel would be between 30 to 50 lakh rupees depending upon its size.

34:19 $30.50, maybe up to 60 lakh rupees. And so if we get order... Like, we are negotiating an order for 32 vessels, then it would be around, say, 35 or $3,540.50 lakhs into 32. So I I feel that we have a limited capacity. We cannot produce 600 vessels in our existing setup, but, yes, we can produce 75 to 80 vessels in a year in our setup along with the existing product line. Got it. So this could be a 25, 30 per hour business opportunity if we work at the full scale. So so Yeah.

35:10 Secondly, if if suppose you have to scale this business up, given the setup you have, do you think you have spoke to increase this capacity or it will take a lot of time and help with the remaining business that we have the It would affect the remaining business we do because the demand which we are seeing is, crazy. So once we are very confident of continuity of that type of orders and business, we may think of moving for additional land and looking for setting up a new plant. Okay. But that would be at least a year and a half project. Right? So Exactly. And that would fit in our future expansion plans. As of now, we believe we have invested enough in India to cater to 1,500 crore revenue.

36:08 Most... In the future, most of which will come from Saudi Arabia as well as from the Houston plant. However, if required, if business opportunity exist... And India is booming. Fairly, I would say even India is booming for us. So sooner or later, we'll have to take that call also, not in... Before '28, but we'll have to take that call. And if this is forcing us to take a call sooner, then we'll do it. Fair enough, sir. And, sir, I think you did answer this question, but I had some lags, so I might be repeating these questions. Apologies for that. The tariff reversal that you mentioned, some 5.5 crore, are we expecting more tariff reversal if yes Around 7.5 crore.

36:54 7.5 is more pending. So are we are we confident that that will also get sorted this financial year or it could extend? No. No. In this financial year. Fair enough. That's it from Just to give you an idea, we are going... That that that calculations and everything is ready and is being vetted by our lawyers. Once he says the... Whatever changes he wants, we will do. Once he says that he is confident to get it through, then we will file it with the government. Fair enough, sir. And so just one last question. I think a couple of calls before, you had mentioned that while setting up your new US plant, you were seeing a lot of challenges with the manpower.

37:42 How is the situation now for you, sir? I would say this is pertaining to Orange, not the new plant. The plant at Orange, Massachusetts. I would say now we have quite an improvement in the situation. My cousin Rahul Patel is now looking after the growth and looking after investment in US, and he has spent a lot of time there now already. And the current situation is, I can say that we are now in a position to build a better team there, and we are quite hopeful that for years, have been trying for com... Competent manpower.

38:31 This should not be a problem in time to come for us. At least in our end, I don't think that based on the feedback from Rahul that this is going to be a big issue in future. This is not going to be a big issue in future. Fair enough, sir. I think all the best to you and your team for all the good work that you are doing. Thanks. Thanks. You. We'll take the next question from Shriesh Misra. Please go ahead. Sir, good evening. Congratulations on awesome set of numbers to you and the entire team of JASH. I have a very simple question. I understand that US has been little difficult because of the changing goalpost and the leadership, etcetera, etcetera, where you also made certain comments.

39:21 Just to understand, are we looking at any different geographies also in due course of time apart from Saudi and The US? If yes, where would we be interested? I mean, what's your thought on that? Thank you. We are investing in US. We are investing in Saudi. This is for capital expansion. Right? However, we are investing a lot in UK, and that is in investing in people to grow that market and become the number one flow control company in UK. So that market expansion will happen. We are gearing ourselves for that, but that will not involve lot of capital expansion.

40:12 Point number one. Point number two, we are trying to enter into new markets, but not by setting plan, but by marketing activity. So our export head, mister will now be visiting Australia and New Zealand next month. I'm going to... Planning to go to Vietnam and all the other areas, Jakarta, etcetera, where we have got initial breakthroughs now. So we... There are two set of things that are going to happen, new markets and new facilities. So new markets are also being addressed, and new facilities are also being addressed. But other than in India, UK, and USA, we do not... And Saudi Arabia, we do not intend as of to lift any other country to have manufacturing facilities.

41:06 Thank you, sir. Thank you. Will take the next question from. Please go ahead. Yeah. Hi, sir. So my first follow-up question will be, sir, in the presentation, have mentioned expected revenue from is about 15 crores. The current order book is about 31 crores. So are these long gestation orders, maybe deliveries, maybe scheduled next year? No. We have considered lower, but we have got more orders. So we will be doing it. Oh, okay. So that that was probably maybe done before. Okay. So does that then revise higher, $8.75 crores upwards? Edit. Keep it at that. If we are able to revise, we will be happy.

41:52 Okay. Okay. And, sir, what is the the revised CapEx estimate? Usually, the FAQ, you mentioned I think it is mentioned in the FAQ. No? Yeah. It is mentioned in the FAQs. I was not able to see CapEx plan. Yeah. You can see that. That's a board report. Will not upload. My board report, you don't upload. Alright. So I can send it to you separately, but but it is around $12,000,000 for America and $4,000,000 for Saudi. Okay. Right. Is there an FAQ also, Kunal? Yes. I saw it. Yeah.

42:41 I remember, well, around $12,000,000. I'll I'll just have a look at it again. So so my next question is, sir, how will this be funded? I mean, terms of... Are you gonna be taking some long term debt to fund it? Or Let me first clarify that we already have some... The $3,000,000 in deposits in America, which we had raised for the plant. Okay. Okay. Internal accruals plus some debt, but I don't think the debt would be very high. Okay. 3 to 4,000,000. 3 to 4,000,000? But we are just looking at how to structure it once we get the complete offer from our plant manufacturing vendor.

43:36 We are... We have got few offers. We are reviewing it. I'll be going to America next month, and then we'll finalize one of the vendors. And then we'll see how to fund. However, we have approved the banks in America, and they are all willing to fund us. Okay, sir. So Chennai plant, how is the ramp up going? Last time I visited, it was still starting off. So how is it now, the operations? Still at the same situation. Improving. We have got a new production head. He's someone we know. He's coming from Westech. Okay. So he was an employee in JASH process equipment. Now we have shifted him to Chennai, and he will look after the production. But he's just shifted now two weeks back, so we have to give him some time to settle and improve the things.

44:26 Okay, sir. And the current order book that we showed for JASH process is basically the Westech order book that was Only... Yeah. That is Westech. Westech is JASH process. Nothing to do with JASH far. Any new order booking has happened in that, or is... It's been... No. No new order. Very small orders. In fact, we lost close to $152,100 crore worth of orders in last three, four months, which was quite shocking. And that is why we are having an intense review of everything at Jash. And, sir, I'm seeing a lot of, sewage treatment plant, you you know, know, being rolled out for, you know, manufacturing.

45:16 What are... What is our view on that? Are we aggressively, you know, pitching JASH products for that in the domestic region? Definitely. I already told that Indian business is growing quite fast and, quite a lot. And so we are very bullish about the growth in India as well. And are we going, are we selling it as a basket of products from primary, secondary, and tertiary level of treatment, or is it mainly gates and, screens focused? No. No. Everything. Gates, screens. See, a good news I can tell you is that when we acquired Vestec Okay. They had vortex grid separator. And for years, that was our Achilles' yield. We were not able to get a reliable technology.

46:01 However, Westech had that technology, and so now we are able to offer, vertex bridge separator at JASH, but using, knowledge from, JASH process equipment. And as a result of that, we have already started getting orders. I think we have got around orders for 12 vertex already. So overall, but the basket of products we offer has also improved, and and the the type of products we are offering as a package has also improved. Okay. And so the $9.60... I think $9.63 crores of order book, I think. $9.32. $9.32 crores of order book is to be exit...

46:47 How much of it is executable in this year? I mean, is it just the balance of $8.75 that we are saying, or it is actually more now that we have, more order in hand? Orders in hand doesn't mean that we won't be able to execute everything, point number one. Point number two, some are already... Some orders are for deferred delivery next year. Okay. Two and three is, yes, we have enough order to go above $8.75 also. But but, you know, we are in projects, and projects sometimes become fast or sometimes slow down. So when we say $8.75, it is realistic and healthy, I can say that there's a good possibility to overcome that and grow much beyond it.

47:42 But how much is something very premature at this stage? Let us be talking about it by second or third quarter result. Okay. And, sir, will you be able to give any guidance for FY twenty eight on revenue? It's already given. And even in FAQ, it is given. Yeah. I think thousand 25 or something like that. Thousand twenty five. 1025 or... If I remember well, it is around something like that. Okay, sir. Okay. Thank you, sir. Around thousand. Thank you. We'll take the next question from.

48:28 Please go ahead. So just thanks for the follow-up. Just two questions from my side. How much... If you can quantify the order size which we could not ship to Middle East and Singapore. Can you help us? 15 crore. Okay. In total? Yeah. Okay. And so just second thing coming back to that Russia sanction bill. So so have we now... Given there is no clarity on on this front, have we sort of decelerated our, you know you know, bidding for projects, you know, because of this gray area right now? Have we sort of slowed down in bidding for projects? It has not been slowed down, but aggressively trying to get orders has been slowed down because the the the situation is so alarming that if something goes wrong, we spoil the next The margins. Yeah. Yeah.

49:29 Correct. Correct. So so I would say current order book in is close to $40,000,000. Right. And that will easily take us through this year and portion of next year. So I would say we... Let us see some clarity on this and then only take a call on being aggressive or not being aggressive. Anyway, next month, I'm in America, and we'll review everything once again and decide. Thank you so much. Thank you. We'll take the next question from. Please go ahead. Yeah. Here. Okay. I, you know, have read through the FAQ about 1,500 crores by 2031, and I think you have given a very valid reason why we shouldn't aggressively pursue higher growth that can create other, you know, collateral damage.

50:32 My question to you, sir, is if we have an aspiration to be, say, number one or two in UK and number one or two or three in in The US, how does that reconcile with a 15% growth? Because, obviously, in two large markets like UK and USA, if we want to be number one or two, we can't be, you know, growing overall at 100 crores, 150 crores per year, right, for next four years. They they don't match. They don't add up. Yeah. I understand that. But I have been telling from beginning, I can make projections for five years, but that's not in my hand because of the geopolitical situation, which is rapidly changing nowadays.

51:22 So what I am saying is my projections of 1,500 per word gives me guidance to how to invest in the manufacturing capacity. And as always, I have been telling that the manufacturing capacity is flexible. If I'm able to increase from two shift to three shift, the same capacity can add another 100 or 200 crore in production. So I would say, as you have seen, maybe next year when I release the effect when based on the change condition there, I may increase it also. So projecting five years in advance today is not an easy task come... Considering what all is happening worldwide.

52:08 Completely appreciate, sir. Sir, my question was slightly different in the sense that, know, you Rodney Hunt used to be a very large company around ten, fifteen years back before we acquired in two thousand eighteen or seventeen. Now the existing competition is from local guys as well as from outside people. Like Mostly local. Local people. Right? So there hasn't been any new guy who has come and can really take the... Give a real competition to us. Right? So is there a market we are vacating or... Because of this tariff issues by not being aggressively investing in in US?

52:57 See, understand one thing. It is a given that in future, also, US will have make it America policy. And make it America policy will need lot of investment in America, which we are doing now. We are not done. We are doing. We are going to do. So until those type of investment are done and those capacities are not built up, I cannot sell dreams. So if I have to become number one in America, I will need those type of capacity and investment in people as well as machinery. And that is what we are doing. So once we have achieved that by two thousand twenty eight March, we would be in a... On a sure footing or better footing to give more concrete projections.

53:51 Yeah. Understood, sir. Sir, coming back to UK, which looks like a far more favorable because of FDA being effective now, people movement is far more easier, and and I think there is also a kind of a kind of openness that has come there in that territory. So what... You know, is there a clarity we have got in next two, three years in terms of what is the kind of market share we are looking at? Currently, of course, it's very low for historical reasons. So to take current revenue as a base will not be wise. Right? So... Because it... Lot of things can happen. So let me clarify on The UK. When we started with this company, there were only nine people. From nine people, you cannot expect huge things.

54:43 Today, we are around 23. 23. 24. Yes. 23, 24 meeting in. 24 or 26, 27 people, and we are building the team. So so even if there is a market, if your team is not there, your your your systems and capacities are not there, you cannot rapidly grow. So we we need to grow the team, our capability, and everything to be in a position to become number one, and that cannot happen overnight. It takes time. This is... These are not mass produced item. These are discrete manufactured product. So we believe... And we are still talking about... Last year, did less than three, and we are talking about well in three to four years' time. This is... Three to 12 is also 300% growth, and we are working towards that. But more than that to grow without building a team is not possible.

55:49 Yes, sir. Thank you very much, sir. Thank you. We'll take the next question from Amitabh Patsya. Please go ahead. Thanks for the opportunity, sir. So what I'm... That the... One minute. Let me give my opinion on the last question asked by mister. See, we we strive to be number one, but we strive more for profitability rather than just revenue. And if you are trying to do that, then we have to go for a balance. And that balance sometimes does not allow us to be very aggressive just on the revenue front. Yes, sir. I I understand. My only... My...

56:38 It is obviously from a from a bystander perspective. You are in the driving seat. You know the ground problems much better. My question was that two ways of being aggressive because raising equity capital in India now is very... You know, it's in a good position. You can raise equity capital if you want to up to maybe a $152,100 crores. It won't be a difficult thing for you. Money is not a criterion for me. The team is a criterion. Money, I... I've already have an... We are expecting a 100 crore plus profit this year. So we have enough internal accruals. Sure, sir. Sure. I understand. Yeah. Yeah. Yeah. Team is the main problem because of that type of industry and type of products we have.

57:25 Yeah. I understand. Yeah. Thank you, sir. Yeah. Sir, I have two questions. One with with respect to Singapore because one or two quarter ago, we have been discussing about some 6,000 crore kind of order with with... Which we have submitted. So what Let me clarify here. We... That was the one for making the project reports. That was not the bid. Budget. Budget reports. And these projects are going to be executed over next twenty years, not in one year or two years. Yeah. Actually, I was... My question was related to that only that in how many phases you see that Singapore Government coming up with executing those, those I cannot say very clearly because it is for the Singapore government to decide.

58:18 But such big projects, would be spread out, I'm sure, over fifteen, twenty years. Okay. That is my equipment. My equipment is at least 10% of the project cost. So we are looking at $5,060,000 investment with Singapore government will do because they have to plan for 2100. So they are also in not the gearing hurry to do it. They will also plan it in a way that their finances and everything is in control. Okay. Sir, second question with respect to one one unique aspect which JASH had with a company called Invent. So are we working on similar synergistic arrangement with other OEMs, or how are we gaining in terms of in terms of equipping ourselves with a better and more number of products in the same field, like water or any related area where we want to expand into?

59:20 We plan to expand into related products. We are seriously looking at certain acquisitions or things like that. And when time to come, when we are sure about it, we'll definitely inform everyone. And just a follow-up on Valve, are we seeing any traction, or are... Do we have any plan to use Valve as a as a separate product? I mean, it's a kind of a part of... Must be a part of bundle for you. But are we planning something serious about Valve as as a product? Presently, no. Because as I said, it is high top line, but the bottom line aspect is catchy. So I would say we currently are not focusing really hard on that.

1:00:10 Waterline was... General waterline was for municipal business. We are not focusing on it just now. Oh, thank you, sir. Thank you. We'll take the next question from. Please go ahead. So now I just have one question. So domestic opportunity for water control gets about $1.50 crores as per the FAQ, and I think we are about at 100 crores in a domestic market. So we are controlling about two third of the market share. But whereas if you see the market potential for, you know, industrial process equipment or mixing aeration, equipment, which I think we are developing with Jash Engineering, the market for that is about 200 crore and industrial processor is 400. So that is a bigger market in terms of, the total TAM. So do we see maybe in the next five years as we achieve 1,500 crore, the share of this will substantially increase, vis a vis water control gets?

1:01:12 It should. I don't know whether we'll be able to achieve it. As I said, in case of industrial process equipment, we lost 150 to two hundred third worth of orders in last three, four months only. So we need to put our act together. We have found out where we lack and big orders whether we can get or not, and that will involve in house manufacturing. Presently, the model of Westech, which is just process equipment, was getting everything done by vendors. And when you try to do everything by vendors, you suffer in pricing because everyone has that edit of own own profits, etcetera.

1:01:58 So, yes, we need to work a lot on it. But if we get our act together, what you say is true, we should be able to show better numbers in those products. Who is the biggest competitor in domestic market for us in this segment?. Then --. Is there, one. And then another is Dellcore. Then, Metso Minerals, etcetera. Okay, sir. Okay, sir. The best on this. Thank you. Thank you. That was the last question. I will request Prateek sir for a closing remarks. So thank you once again, everyone.

1:02:46 I would say some of the questions which you asked are very long term for which I have no easy answers. So I have tried my best to reply to them. However, for the current year, I can say I'm quite bullish now because I see most of the things falling in place. The only worrying aspect now is the the new announcement by mister Trump, but we will see what happens. However, I personally feel that even that will not affect us drastically in the current year. Maybe in the long term, but not in the current year. And so with that, on positive note, I will say that we would meet our projections given earlier, which is the 875 crore with around 100 and 100 to 105 crore impact mark profit after tax for the year.

1:03:48 Thank you. Thank you. Thank you for joining us today. If you have any additional questions, you can reach out to us anytime. We wish you a good health and look forward to seeing you again in the next quarter. Have a good day. Thank you. Thank you. We can't stop.