Mtar Technologies (NSE:MTARTECH) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to MTAR Technologies Limited Q1 FY 'twenty seven Earnings Conference Call. As a reminder, all participant lines will be in 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 miss. Thank you, and over to you, ma'am. Thank you,. Good morning, everyone. On behalf of MTARTECHNOLOGIES, I extend a very warm welcome to all the participants on q for q one FY twenty seven earnings discussion call. Today on our call, we have mister, managing director and promoter, mister, chief financial officer, and miss, head strategy and IR. I hope everyone had an opportunity to go through our investor deck and press release that we have uploaded on the exchange on the... Find on the company's website.

1:04 I would like to give a short disclaimer before we begin the call. This call may contain some of the forward looking statements, which are completely based upon our belief, opinion, and expectations as of today. These statements are not a guarantee of our future performance and involve unforeseen risks and uncertainties. Now I hand over the call to Srinivas, sir. Over to you, sir. Hello. Good... And good morning, everyone. Thank you for taking the time to join us today. Today on the call, I'm joined by mister, chief financial officer, mister, head strategy investor relations, and Orient Capital, our investor relation partners. We have uploaded our updated investor deck, press release, and results highlights on the stock exchanges at company website.

1:53 I hope everybody had an opportunity to go through the same. I'm pleased to share that we have delivered another strong quarter with our quarterly performance remaining in line with our growth guidance provided for the current fiscal year. We continue to see strong momentum across all our business verticals supported by favorable industry tailwinds and a healthy pipeline of opportunities. During the quarter, we raised a revenue of INR360.7 crores with an EBITDA margin of 23.6, which is in line with our annual guidance. While the financial performance is very encouraging, what gives me greater confidence is not just the numbers, but the direction which the company is heading right now. We strongly believe that the company is at an inflection point with each of our key business verticals positioned for next phase of growth.

2:45 The sectors in which we operate, be it civil nuclear power, aerospace and defense, and clean energy, all are witnessing strong growth across both domestic and international markets. With long term strategic vision and a strong spirit of innovation, we have built differentiated capabilities and niche product portfolio across these strategic sectors, consistently investing in technologies and capabilities well ahead of broader market adoption. Today, as these sectors gain significant momentum, the strength and diversity of our key product portfolio are redefining our growth trajectory and creating multiple avenues for sustained long term growth. In civil nuclear power, the capabilities we have built over the past five decades with lot of foresight are translating into meaningful opportunities moving forward.

3:40 We received our highest ever order inflow in this segment during the last quarter for five and six reactors and looking forward for more orders from refurbishment of existing reactors during the current quarter as well. I'm also pleased to highlight our notable contribution to the reactors, which recently achieved criticality, a strategically significant milestone for India's nuclear energy program. The civil... The company has played a pivotal role in this prestigious national program, having supplied a majority of the critical assemblies for the reactors, inflating the depth of our engineering and manufacturing capabilities built over decades. Looking ahead, the proposed development of four nuclear reactors at Mahi Maspada through the MTPC and PCL partnership represents another significant opportunity for the company.

4:35 With the government of India targeting 100 gigawatts of nuclear power capacity by 2047, we believe the long term opportunity for the company in this sector is substantial. From an execution perspective of current orders, we expect to see a very meaningful ramp up during the current fiscal year with a significant growth happening moving forward as well. We already have a strong order book in this segment and supported by healthy pipeline of opportunities and regular order inflows expecting going forward as well. We believe civil nuclear vertical has transitioned to a more consistent and sustainable growth growth trajectory with substantially reduced cyclicality compared to the past.

5:23 Clean energy continues to demonstrate a strong momentum. We received report order inflows during the quarter, further strengthening our already robust order book and providing strong visibility for growth going forward. Our capacity augmentation plan for fuel cells being implemented in three phases remains on track with phase one already commissioned, with phase two to be commissioned by September, October of this year, while phase three, which is a multipole capacity expansion, will be completed in March 2027. Is designed to support multiple products under one roof, providing us with greater scale and operational efficiency.

6:12 An important point to highlight here is that our expansion is not limited to adding physical capacity. We have initiated manpower training and are working on automation initiatives well ahead of capacity coming on speed, ensuring that we are operationally prepared to support the expected ramp up in volumes moving forward in the coming years. While we continue to cater to multiple areas with. We're also focused on further doubts can become meaningful growth drivers over the long term. In line with this strategy, we have entered the data center infrastructure infrastructure solution segment where we see significant growth potential. Initial set of data infrastructure products are currently in progress.

7:00 Upon successful completion of the qualifications process, we expect a meaningful ramp up over the next year. We are currently working on the first batch of products against the potential requirement of eight times this requirement for the order what we have received at this time, providing opportunity for the substantial scale up of this vertical. To support this offers... Opportunity, we're also setting up a dedicated facility for data center center infrastructure solutions. We are witnessing a good traction in hydropower and wind energy segments as well, and we continue to pursue select products in this segment. Clean energy will remain a major driver of revenues by end of this fiscal fiscal year.

7:47 Aerospace and defense, the growth remains encouraging, and we expect significant order inflows as multiple programs and customer engagement are in progress. In the domestic defense segment, we are anticipating volume orders for actuator assemblies for LCA pages Mark 1A as well as orders for wind gates and electromechanical actuators for various defense programs. With overall opportunity potential exceeding more than $2.50 crores, the execution from domestic space vertical is expected to witness a steady growth. Our MNC Aerospace business continues to demonstrate phenomenal growth potential with significant demand from existing customers for products that have already been qualified. To support the anticipated volume ramp ups, we're setting up multiple subunits within our existing dedicated aerospace facility.

8:40 One of our key differentiators has been the pace at which we have established customer specific manufacturing capabilities, including our new dedicated aerospace facility and NatCap approved special processes facility. Our ability to establish these capabilities within a short time frame has been used very positively by our customers and reinforces their confidence in our ability to support their growing requirements. With qualified products moving towards higher volumes, increasing demand from existing customers, and multiyear visibility across these programs, we believe aerospace and defense is well positioned to emerge as significant growth driver for the company. While we continue to pursue multiple new inquiries to capture the next leg of growth, our immediate focus remains on completing the first radical qualification of existing products and ramping up volumes.

9:33 As these programs progress, we will also look to onboard new customers. We expect to double our revenues in Aerospace and Defense segment during the current fiscal year with a significant ramp up from this base anticipated over the next three, four years. Importantly, this growth outlook is largely driven by our existing programs and product portfolio with further upside potential as a new inquiry is currently under discussion materialize in addition products are added to our portfolio. The offline gas facility will be operational by this October. We have already delivered the first articles to our customers, while the first articles for classic components for another customer are currently under process. As discussed in the last earnings call, we expect a robust closing order book of INR 5,000 crores by end of this fiscal year, providing a strong revenue visibility.

10:27 Our closing order book by end of this quarter already stands at INR 5,143 crores, and we have received additional INR lakh crores of orders today. With further order include expected across all key sectors over the coming quarters, we remain confident in sustaining the growth momentum going forward. While we have a robust five year road map to pursue growth across all sectors, execute... Execution remains our key focus in the near term. Our ongoing expansions across all verticals remain a key priority as we continue to build the capacity required to support the next phase of growth. At the same time, as we pursue the long term strategic opportunities ahead of us, prioritization of projects and prudent allocation of capital will remain equally important for us.

11:16 We continue to focus on maintaining healthy working capital, strengthening operating cash flows, and maintaining a healthy balance sheet while ensuring that capital is deployed towards opportunities that can deliver sustainable growth and improve our returns. Secondly, execution as per customer requirements is another important area of focus. We continue to strengthen our management and technical teams, enhance operational efficiencies and build the manufacturing capabilities required to deliver on our growing order book and meet our execution targets. Improving EBITDA margins also remains a key priority as we scale our revenues. With the progress we are seeing across all key verticals and initiatives underway to strengthen our capacity and execution, I would like to reiterate our confidence in achieving the guidance given earlier at 80% revenue growth for the current fiscal year with an EBITDA margin of 22% plus minus 100 basis points.

12:14 And we are pretty confident to better than to do better than the guidance given earlier everyone. We remain focused on building a world class institution with a diversified and sustainable business for the long term. I would like to thank all our shareholders for their continued trust and confidence in the company. Now our CFO, Mr. Dineshwar Rao, will discuss in detail on the financial performance for Q1 FY 'twenty seven. Thank you. Thank you, sir, and good morning, everyone, and thank you for joining us on the earning call. We have recorded highest to have a revenue of INR $3.60 crores in Q1 FY 'twenty seven, registering a strong growth compared to the corresponding period last year and also last quarter. Overall, the company witnessed the healthy growth on both y o y and q q o q basis driven by the strong execution of various products.

13:15 I would now like to provide an update on our con... Consolidated financial performance for this quarter compared to the previous year first quarter. So revenue from the operation needed $3.60.7 crore in q one f y twenty seven, adding this $1.56.6 crore in q one f y twenty six, which resulted 130.4% increase in revenue. EBITDA reported at 85.1 crore in q one f y twenty seven as compared to 28.4 crore in q one f y twenty six, and this has translated to 199.7% increase compared to the last year first quarter. Profit before tax stands at 67.4 crore in q one f y twenty seven as increased to 14.8 crore in q one f y twenty six, which is 355% increase.

14:07 Profit after tax was at 50.2 crore in q one f y twenty seven, had a less than 10.8 crore in q one f y twenty six, which is 3364.5% increase compared to the last year first quarter. So while we expect strong growth across all sectors in in which the company operates, the company also focusing on the customer diversification strategy, increasing valid share from the existing customers as informed by RMD. Along with this growth, the company will continue to focus, maintain healthy cash flows from operations, making careful capital investment decisions, managing working capital efficiently to support sustainable long term growth.

14:53 When it comes to the working capital days, we were... We have achieved fifty nine days compared to the one seventy two seventy two days during the FY twenty six per entire year, Supported by various initiatives undertaken by the company, including better commercial terms with the customers and also monitoring the... Each element of the working capital on daily, weekly basis. So we were able to reach to fifty nine days, whereas our guidance given in this year is a hundred and seventy two days. So we have given a guidance, whereas we achieved sixty days. By end of the year, we were expecting to maintain hundred days as compared to the previous year... Previous guidance of one seventy or one fifty days in that range.

15:40 The the gross margins we achieved as 45.61% in this quarter, and as compared to the last year for 47.65%. This is due to revenue mix, which has happened in this year, and we are continuously monitoring the improvement of the gross margins wherever possible. Then EBITDA margins is at 85.1 crore in this quarter. Not 85.14... $1.01 crore in this quarter, which is actually 23.54% we achieved as against the yearly guidance of 24% we have given. And last quarter, EBITDA margins was at 20.11%. And this is due to operating leverage we achieved through the higher revenues and also monitoring of the cost. ROCE is at 17.2% versus 11.4%, and we expect it to, you know, reach 23% next year.

16:41 Our is at 50.22 crore for this quarter, which is 13.92%. They're going to 6.9% in q one FY twenty six. And last quarter, also, we achieved a good set of the bad numbers because our revenues are growing multi fold from now onwards because of the strong, harder book what we have. And also, whatever sectors we were doing, first articles last two, three years, it is now in the production ramp upstairs, the customers were increasing the, you know, the orders in this sector, first articles, whatever we completed, we are getting at least 10 to 15 times of the volumes in the aerospace sector. And the cash flow from operations is at $2.47.9 crores in this quarter as against $1.91.66 crores in the last year. This is mainly due to the various initiatives undertaken by the company, including working capital and other other areas, better commercial terms with customers.

17:43 And the other important fact... Other important metric we are seeing, our debt is at $4.23.6 crores as of 06/30/2026. So we have an investment of 379 crores as of this month end, like, June, July end. We have $3.79 crores of the investments out there. So literally, there is no debt in the company except some $20.30 crores after adjusting the cash balances, whatever we have. And as explained by our MD, we are in in a phase of the expansion of the various verticals in the company, and this requires almost 500 crores of CapEx for this year and also next year put together this CapEx required for the existing expansion plans, whatever we have undertaken.

18:36 So thank you everyone for joining this call, and we appreciate your time and for your trust and results reports on the company. Thank you very much. So you can take up the question and answers now. Thank you very much. We'll now begin with the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touch tone telephone. If you wish to remove yourself from the queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles.

19:27 The first question comes from the line of Mohit Kumar from ICICI Securities. Please go ahead. Yes. Good morning, sir, and congratulations on a very good quarter. My first question is, sir, can you help us with the tentative execution time lines for the order which you announced today, which is INR31 billion. You said everything of this will get executed in FY 'twenty eight and FY 'twenty nine, and nothing will be excluded in FY '27. Is that a fair expectation? Yeah. I mean, the orders what we received today, the execution time line is for next year. I mean, the demand is lot more, and it's all depends on how soon we we can implement our expansion plan and then take it forward.

20:15 So the sooner we do and the requirement is obviously for next financial year, but we have to see how soon we can implement our expansion plan and ramp up plan for next year, which we are targeting that, and let's see how it goes. Understood. So my second question is, sir, do you expect separate package for nuclear power plant of Mahi Banswara for fuel machining system where we can participate directly, or are you expecting to participate through the EPC vendors? No. That is through EPC vendors. So we are qualified for number of projects as we have seen in five and six. So we expect a good opportunity from this.

21:03 Five and six is two reactors, and these are four reactors. And Mtar's participation in this project will be much higher than what we can expect from five and six as well. Oh, understood. My last question, sir, can you help with the execution time lines for the existing nuclear order for five and six? And how big is the refurbishing order which you're expecting in this quarter? See, the refurbishment orders, overall, would be about around $202,100 and plus crores that we need to do for various reactors. We're expecting another $131.40 crores of orders coming in this quarter. And and, obviously, we have a lot on our plate in terms of the maximum orders, which will be around close to 800 crores in nuclear engine itself, which never happened in the history of this company in the past.

21:55 And plus the kind of order pipeline that we can see moving forward as well with the new projects coming in and the government's plan to move into much higher gigawatt range. We expect this to... The momentum to continue over the years, and there will not be any cyclical issues as compared in the past in earlier, talking about five, ten years back. But we would see the momentum going forward as well. And the execution time lines for the existing orders, sir? So for the refurbishment reactors, it is within two years. And for five and six, the execution time lines range from one year to three years, three period hours.

22:41 Understood, sir. Thank you, and all the best, sir. Thank you. Thank you. Before we take the next question, a request to all the participants to restrict their questions to two part two questions per participant. Thank you. We take the next question from the line of Bala Subramanian from Aryan Capital. Please go ahead. Good morning, sir. Thank you so much for the opportunity. Congratulations for a good set of numbers. Sir, on the working capital side, we have seen a significant improvement in terms of inventory also reduced from 148 to 145. Received is also reduced to 140 to 82 on a like just want to understand this dramatic reduction in days is very much impressive.

23:31 So how do you understand in this financial year as well as next year? And given it's a diverse project portfolio, some of them are long cycle, some of them are short cycle. So what are the specific initiatives drive this improvement? And how do you understand in the coming years? Yeah. You want to answer? Yeah. I'll take up this call. So we have negotiated better terms with some of our customers as far as commercial terms with consideration. And also, in our receivable days are good compared to the last quarter. We were able to negotiate some better terms. One is commercial terms. Also, the credit period, we negotiate some of the credit terms are after reaching the customer premises.

24:21 So we were able to, you know, deliver at a faster pace so that we can able to deliver... We can able to receive the money. And having said that, the target is for this year is around hundred days. We are targeting to reach that, including keeping consideration of all long time... Cycle projects into consideration. Apart from this, we also is monitoring every element of the working capital, like current assets. We were able to generate GST refund of almost 70 crores per year we are targeting. So so that the cash flows will be better, cash flow from operations better and all. We wanted to, you know, sustain these levels, know, constantly negotiating better terms with the both existing customers and also from the new customers.

25:12 So that's how we can able to do. Everything is done it organically, and there is a possibility of doing inorganically also, but we don't want to do at the cost of, you know, margins. So the... In our... Can actually also we can reduce, but it will be the costlier. We don't want to, you know, affect the margins in the company. As long as it is... Margins are better and everything is good, then only we can take any of the actions. But whatever we have done is, organically, we are able to reduce now. I hope I clarified your question. Yes, sir. So my last question, so I think we have our book of nearly 5,000 crores and today morning around INR 3,000 crores.

25:59 So I think if you are having if you want to execute more order book, obviously, we need to have kind of facilities and equipment. Earlier you guided other CapEx. Is there any reiteration that CapEx, especially for clean energy side? And if you go to like get the update of oil and gas and Green Energy Phase two for the CapEx perspective. And how much CapEx do you have incurred in Q1, sir? See, like, total INR 80 crores CapEx is capitalized, but it is not spent in quarter. It is actually in the form of capital work in progress, and it become capitalized now. For quarter one, we might have spent around $30.35 crores on the CapEx.

26:47 But overall, 80 crores, which is capitalized, earlier it was in capital w I p line item with the part of fixed assets only. When it comes to 5,000 crores order book, what you mentioned, today, have given an incremental. We received the 3,200. It is not a full order. Already communicated earlier, the incremental order is 800 crores. So it is 5,100 plus 800 plus crores is the total order book as of today. When it comes to the CapEx plans, sir, we... As we come... As we said earlier in our call... In my call, it's actually around 500 crores we have to incur to take the company into the next level. Next year guidance, we are not giving officially as of today. But, you know, we are seeing at least four, five times of asset turnover, whatever we we do minimum four to 5%.

27:42 Four to five times of asset turnover we are targeting. And if you look at our debt is today around $20.25 crores only. The... After adjusting the investments what we have in the company. So we are very strong in the... As far as the balance sheet is concerned and working capital also into consideration. Total across all sectors, we are going to spend around 500 crores, but everything will not spend in this year. It will be spill over to next to one, half of the next financial year. As communicated by our MD, there are phase one, phase two target... Phase two, phase three targets are there for which we need to, you know, spend the money to increase the, you know, set turnover ratio at least six times. So whatever we spend in the form of CapEx.

28:33 Got it, sir. Thank you. Thank you. The next question comes from the line of Gaurav Nagori from Avesant Spark. Please go ahead. Thanks for the opportunity. And then the last participant's question, given that you are seeing a very strong demand for the in the fuel cell segment, are you planning the capacity expansion beyond the 20,000 hot boxes capacity that's already guided? That's question number one. And secondly, if you can elaborate a little bit more on this new product revenue, which has gone to almost INR 100 crores, almost 50% of the clean energy segment revenue run rate.

29:21 Yeah. So, basically, Gaurav, as I mentioned earlier, we are going to phase two is an expansion should be ready by customer for for fuel cells. Basically, it's going to be a multipole expansion plan. I can't specify the numbers because of the India being signed, but it's going to be a multipole expansion plant, which will become... Which will be ready by March 2027 in all probability. So there will be a ramp up which is being organized. The training program is being done right away to get up to these. One is the capacity and one is the ramp up plan. So both are being addressed. Right? So it's going to be a massive multi cloud expansion plan, which is in place because of a very strong demand as we have seen that in today orders on a consistent basis.

30:16 And moving forward as well, we see a very strong road map in all these sectors moving forward. And what was your second question, Dauri? Yeah. So on this first question only, so when you say March 27 timeline, is it the commissioning by March 27, or you would be starting from March 27, if if you can just clarify on that one? We will be commissioned by March 27, the multipole expansion plan, and then we move on to the ramp up plan after that from April onwards. Understood. The But we have a phase two phase two two will be operational by October of this year. Okay. Okay. And and the next We've completed phase one expansion planning all aspects. So it's done already.

31:09 Alright. Alright. So the CapEx for this year would be would be updated because of this new phase expansion from October to March 27? Yeah. That's right. All right. The second question was on the new product, which has seen a sharp growth in this quarter. In fact, the run rate now is almost 50% of your the fuel cell segment. So is it just one off deliveries or this would be the run rate continuing from here on as well? No. It's going to continue. It's going to to grow. Actually, we are going into a... We've got a major demand in this product division, and it's going to continue to grow more than what it has grown in q one. Second half would be even stronger than the first half in all these segments that we're talking about, including the product division.

32:02 So this new product segment I'm assuming is other other product which goes into this fuel cell assembly only other than the hot box? No. Not necessarily. We have the other we have the other products as well. We are doing pretty well in both. We have a lot of export products as well. And there's a major contract with one of the MNCs for a tool supply of all tools for them for the. So a lot of work has been done over the past couple of years to get qualified for all this, and now you are seeing those moving... Results moving forward. Alright. It's a combination of everything. Understood. Just last question, again, on the working capital where we have seen receivables kind kind of coming down from one forty to 80.

32:50 Our understanding is that that most of these high receivable days is because of the transit time that you have. And then the the recovery from the client is is is having about forty, forty five days of working capital days. So if I understood it correctly, this entire decline is because of of a better credit terms once the product is delivered in the client side or any other reason? No. It's all about better payment terms, credit terms, and various other aspects. Right? So that's what it is. Yeah. Not only I think, yeah,. So not only the customer, what you're saying, we also actually got negotiated better terms with other customers also.

33:35 And the weekly monitoring is in place. And so various actions, not only that. Is something culminated into this reduction. Okay. So the end of the day, the the capital days would be... Like, we'll be sustaining it. We are at fifty nine, sixty days right now, but we'll be below hundred days for the year. So that's what the CFO has mentioned earlier. Okay. And I mean, the the the way to look at is the receivables inventory days, which used to be about three forty days, which is now down to about two twenty. So you're saying that both the receivable and inventory days will sustain around two hundred, two twenty days and and the working capital at 100 basis.

34:24 Yeah. That's what I get. Let let us see. Alright. Thank you. That's that's it from my side. Thank you. The next question comes from the line of Sumant Kumar from Mtar Oswal Financial Services. Please go ahead. Yes. Hi. My question is our key client has increased their earning revenue guidance by 10% to 15%. So assuming that, can we say whatever the guidance we have given 30% plus minus 5%, there is a higher possibility to upgrade this in the coming quarters? Sumant, it's like this. I've already said that in my speech that definitely we have given a certain guidance, which we are very confident of, and we'll definitely do better than that. So probably that's what I would say right now.

35:21 Probably we'll see by end of next quarter how it goes, and then we'll come back to you on that. Okay. And for this civil nuclear power segment, our order book execution is still is not picking. So when can we expect this the execution is going to happen which year? In this year, Sumant, second half of this year, the execution will commence, and it will continue to grow from there on. That's why I clearly said that we are doing certain long cycle projects right now, and the execution will start from second half of this year, and it will continue to grow from thereon. Okay. So this order book is for how many years of the current order book of nuclear power?

36:09 Overall, it's for three three and a half years. Some of the orders are within two years. Overall, we have to execute everything. We have roughly around 800 plus, I think, including the one which we're supposed to get where we are declared as one. We're supposed to execute always within the next three years. Okay. Oh, thank you so much. Thank you. Sir, as of today, we have $6.84 crores of orders, and what we are expecting is $1.30. So as with that, it is around 815 crores. That was mentioned by around 800 crores in the last question also. So that is we are going to... I think we are very confident we'll get in this quarter. Okay. Okay. Thank you so much. Thank you. We have the next question from the line of from Philip Capital. Please go ahead.

36:59 Hi, sir. Good morning. Just quickly on the CapEx side. So you you have guided for 500 crores of CapEx for next couple of years. Out of this, sir, how much will be for non PNLG segments out of the cycle? It will be I think should be around $70.30. Right? Seventy thirty ratio, but it will be in the 7030%. So 30% is for non free energy segment. Right? Yes. Yes. Okay. So around 90 Even in the within the clean energy also, some parts can be fungible in other sectors also, so which we will use for other sectors also. Right, sir. And so out of this 500, how much you've already incurred in quarter one?

37:49 So we incurred around 35 crores of CapEx in the quarter one. Oh, 35 crores. Right? Yes. Sure. And so... Okay. That that is great. And secondly, on the data center side, where we are obviously, you know, working on first approvals, and then we'll be ramping up. So exactly what we'll be doing and firstly and secondly, sir, what's the current size of the order we are working on as far as data centers are concerned? See, data centers order is about 45 crores, which we have exclude, which we have to do it before March of this year. Right now, the way... We are doing the first article right now, that's the initial first article with a couple of two, three SMEs, and then we go into the major first set of order, which is about 45 crores, which we have to exclude by March of this year or February, March of this year, the last quarter of this financial year.

38:43 And the way we are setting up the whole plan is that they have to eight such major infrastructure requirements, eight sets year on year basis. So that's where we stand. So the focus is basically to ensure that we have a dedicated facility for that moving forward to execute that eight sets requirement each year onwards. And so it's for export. Right? It's not for domestic consumption? No. All this is for export. All this is for export. Thank you. Thanks a lot, sir. Thank you. Thank you. We have the next question from the line of Viraj Parekh from Carnelian Asset Management. Please go ahead.

39:30 Thank you so much for the opportunity, sir. My question firstly is on the nuclear segment of ours. You've mentioned in earlier questions that and also on your PPT that there are four projects that Maheep and Saurabh will be bidding. Is it possible for you to address the TAM and the kind of opportunity we can get in terms of revenue from these four projects which we'll be bidding for over the next three, four, five years as and when they open? See, basically, the the... Today's situation is that tenders have already been floated for these four projects for 20 megawatts. Once they are allotted to the contractor who is getting it, then.

40:17 And that has an opportunity of much more than what we received from Tiger five and three because Tiger five is only two reactors. We have four reactors. And the the timeline, I cannot really say. Probably, it's a process by itself. Right? They're they're finalizing the tenders, and then it's a one year process, I guess. So they're already having... Okay. It's fully in terms of orders. So probably, the process might be in the next financial. Okay. And, sir, the other question is you... I have a specific slide on, you know, role in India's PSDR program, and the company also contributed for this program. So can you just help us understand that what can be the opportunity size here for us?

41:05 See, the program was a very long program for us, which we have actually contributed massively for that in terms of the core of the reactors in various major SMEs, which we have done exclusively for ITAR and Mavni projects that we have here. So now since it's achieved the criticality, now they're looking at setting up... I think what we have heard is they're gonna set up another couple of more reactors, which is they started sending the details to us. So the opportunity is very big in that. So let's see. As and when we have more information on that, we'll update all of you on that. But there is a great opportunity coming forward for that. But since they have achieved the criticality right now. So in nuclear, how we work with EPC contractors here, we are directly working with EP20 or with the government.

41:59 No. This is directly with the government. This is a a base of But PSPR is dedicated to both. So, sir, if you have to, like, understand the pace of of the nuclear or the PFPI program, either of them scaling up faster, we would not observe revenue, but in terms of, you know, the timelines of things happening faster. PFPI would come ahead of nuclear? I'm I'm not too sure about that. See, PFDR will definitely come forward because the... They have achieved cyclicality, and it's a a great achievement by the government of India to do that. We have contributed a lot for that. It's kind of part of our nuclear cycle to use the petroleum deposits that we have. All this is for civil generation of power requirements.

42:48 Right? So, obviously, step is taken right now in terms of moving forward with the next. So let's see how soon they come up with that. Understood. And this is the last question. I think the previous participant touched upon it. The the production other sectors where we are supplying certain components, which are import substitutes, and we also have certain export orders here. Is it possible to elaborate certain end users and the products that we are making, which are critical and also the end user of this industry, it mainly comes from the point of view of understanding the sustainability of this vertical for our business, given that it's scaled up so significant in q one. Yeah. So the sustainability, it's going to start and even do better moving forward. So it's a combination of aerospace, defense, clean energy. It's a combination of all those products that we have developed over the years, and it's going to sustain and do better actually quarter on quarter basis. That's what we are looking at there.

43:50 Sir, like in aerospace, once we get our first articles approved, is there the similar nature of this business that we are getting certain first articles approved and then, you know, winning long term orders? That's exactly what I've said. See, as the CFO also mentioned earlier, see, basically, what you have seen, we have done a lot of work in the last couple of years in order to establish the first articles, the infrastructure, getting qualified for aerospace, and getting the right customers and our quality getting approved very well by all these customers. So we already moved into the volume production for majority of the first articles, and some are in the process. So it's an ongoing process. So what you're seeing the numbers right now is an effort of... Which was done over the last one and a years.

44:41 Understood. Thank you so much, sir. All the very best. Thank you. Thank you. We have the next question from the line of Janesh Karya from Union Asset Management. Please go ahead. Yes. Thank you for the opportunity and congratulations on a very good set of numbers. Sir, considering... I can't hear you. Can you come closer to me? Is this better, sir? Hello? Is this better? Hello? No. It's not. Hello? Is this better now? Hello? Yes, it's better, right. Yes. So thanks for the opportunity and congratulations on a very good setup number. So considering the INR 5,500 crores of ownership that we have currently and a very strong outlook on all our segments, Incrementally, our revenue will also multiple grow in the coming years. The 500 crores of CapEx and the incremental working capital requirement, how do we plan to fund it? Will it be debt funded, internal accruals funded, or will we require some external capital to fund it?

45:55 No. It will be a combination of internal funding and the debt. That's what it is. Understood, sir. So the second question is on The US data center side. So considering we have a large customer there, any on ground news that you're hearing from interaction with your customers with regards to delay in the incremental capacity or CapEx, which is being spent on The U. S. Data centers, any delays or slippages you expect in the near term or the medium term? See, all this is unwanted noise. I really wanted to express this very clearly. You have seen how we have progressed as far as Mtar is concerned and how we are moving forward and the kind of orders we are receiving even recently as well.

46:48 So things are going in the right direction. Absolutely, there is no issue at all. Perfect, sir. That's good to hear. Thank you for addressing the questions and all the best for the future. Thank you. We have the next question from the line of Rohit Natarajan from Axis Max Life. My first question is more to do at a very term picture perspective. We are given to understand Bloom, Fremont capacity, they are looking to expand it all the way to five gigawatts. This would technically mean something like 77,000 odd boxes as such.

47:36 Even if you exclude the Taiwanese player, the capacity for you, it will probably be they will be asking you to do more than 50,000 odd boxes per year as such. Will you be in a position to do that? And even some picture beyond that, probably they may have to increase their capacity as well, given the kind of requirement you have behind the retail solutions globally for all these data centers as such. What is the outlook over there? I understand there is some MDR and maybe you don't want to disclose many things, but you could probably give some qualitative indicators as such. Yeah. Yeah. I just... I do have this in the market. Like, which is which is a my.

48:34 I... They can't get into the numbers because of the NDA side, but that's the whole plan, right, to take care of the customer requirements. That's what I can say right now. So they are on track with everything that what the customer needs. Got it. Got it. My second question will be more about the content per platform in defense. What exactly are you offering in Pages? What will be that value per platform for, say, let's assume for one aircraft? Similarly, the content per platform and content per reactor for, say, nuclear, if you could give us some numbers to understand how big is the opportunity here and how much you can incrementally make an improvement? See, as I mentioned earlier in different pages into the actuator program, which is more than 40 to 50 gross. It's going to go even further in that. Though, that's not the only area. We are working on very niche areas in defense, which we don't get any kind of projects.

49:39 So they're they're working on various projects including various projects as well. So we are working on number of projects which are... We find there's a lot of value add and the criticalities involved in those projects. So these numbers are going to grow for sure. And our basket of our share is pretty high in terms of the reactive to the front end. They have a 100 to provide because of orders. Exactly. Right? So we're looking at four reactors coming in. So there's a massive plan for... By the government of India also moving forward to the. And we keep talking about clean energy, but we are really pushing ourselves to expand our capabilities beyond the... For the requirements that we are seeing... Foreseeing in a huge way in the nuclear program. And then that is working towards that. In terms of...

50:43 We get these commitments, we can come in a big way over the next two, three years. Surely, sir. I appreciate it. I'll get back in the queue. Thank you. Thanks a lot. Thank you. The next question comes from the line of Piyush Sevaldasani from Sundaram Alternates. Congrats for a great set of results. So my first question is on the interest cost of INR 16 crores. If you could help us with the bifurcation cost, how much of that is non fund based limit? And given the free up in the working capital, how should we see the interest cost going forward?

51:35 Oh, the interest cost, basically, I think that... I don't have the exact breakup of that, but probably CFO can give it a little later to you. But it's a combination of everything, and probably it would we're trying to reduce our interest cost also moving forward further. So it it would come down moving forward a quarter on quarter basis, I guess. I think we'll take this. Got it. Sir, just last question on this production. Think we were trying to increase our TAMs with our largest client. We were trying to get into the enclosures and cable harness. Any other new products which we are trying to expand our opportunity with them?

52:23 Yeah. We are definitely doing that. We're doing qualified for issues as simply that. So as you know, it is done, we'll automate accordingly. We are doing that in that. Okay. Sure. That is a goal at that. No. What I want to say is, this is the entire entire information is the invitation. We keep working on developing new products on a consistent level and we'll see the results six months, one year down the line in terms of volumes and all that. That's our focus right now. So that continues to us. Okay. Sure. You, sir. That's it from me, sir. Thank you. The next question comes from the line of from Philip Capital.

53:15 Please go ahead. Sure, sir. Thanks for allowing me to ask one more question. Sir, quickly on the product side where we have obviously seen a very rapid run up in the context of this pointless revenue. So specifically, sir, going ahead, what kind of programs you're working on? I mean, what kind of ramp up you see as far as product is concerned over next couple of years? See, the product engine is going to grow rapidly because we have done a lot of work in terms of aerospace, and various other sectors. And you are seeing the results now in this policy moving forward as well. And as I said, basically, it's a continuous process to develop the products, cater to the existing customers and new customers as well in.

54:07 So it's a it's a combination of different segments that we're working on in the products division, which we haven't done for the last couple of days and you'll see the results right now. And moving forward, as well as the segment will do more and more. Sure, sir. That makes a lot of sense. That's all from my end. Thank you. Thank you. The next question comes from the line of Pritesh Chera from Lucky Investments. Please go ahead. So from your backlog, if you could tell us what is the execution cycle of the products backlog and clean fuel, clean energy fuel cell backlog? See, that's a very good question. We have in the order display demand is so high. See, when people are keep asking about Sir, your Sir, your sound is not audible. Sorry.

55:06 No. I think I'm audible. I don't know. Can you hear me now? Think Operator. Can you hear me? We can hear we we can hear you, sir. Sorry to interrupt, sir. There's a quite disturbance in your voice. Yeah. Can can you hear me now? Yes, sir. Yeah. It's better, sir. Okay. Still, we have in the. Think if you the more we execute, the better it is for consumers. That's what we are doing right now. I will go into the expansion plans and also doing on the operation efficiencies of this existing capacity.

55:55 So the the best part of the order book is it's not like an order book. It's actually excluded over five years or ten years. It's all short cycle. Some are within one year, some are within six months, some are within two months, some are within one and a two years. So it is it's something that is not a book which is 10 words. So that's the. Sorry. Your sound... Operator, I cannot listen anything. I I think Sorry, sir? Fine. Sir, actually, we are losing your voice.

56:43 Sir, we are losing your voice. I request you to do the adjustments. I've done it. Okay. Alright. Yes. Fine. Sir, we are still using... Losing your word. My voice is clear. My voice is clear. Yeah. Your voice is clear, sir. Okay. So can you ask question again? I was asking on the Oh, can you hear me now? Sir, I was just asking on the execution cycle of the clean fuel sales order backlog, if if that's possible to share.

57:41 Sir, you Can you hear me now? Okay. So, basically, the x... See, the the... What the... What orders you're seeing right now is that we need to exclude them over this year and the next year. And the sooner we do the... They're all looking at the execution cycle and implementation of the capacities. And they're all short cycle orders. It's not that they're trying to exclude this over the next three years, four years. It's all very short cycle orders, which we need to exclude as soon as possible. Okay. And, sir, in the total gigawatt issuance of your key customers, what will be the indicative market share that we have?

58:33 No. It... There's nothing like market share. We... Right now, see, the demand is so high right now in terms of the requirements by the customer. So we we hold the majority of the share in that, but we can't spell out the exact percentage right. Okay. And the last question is on the products business, and there are substantial number this quarter. And on the aerospace and defense business, if I had to ask you three, four years down the line, what should be the size of these businesses? So these businesses have been around 100 crore size, $100,150 crore annual size. If I had to ask you in FY thirty based on whatever work efforts that you have put in and the platforms or the or the projects that you're working on. What kind of business sizes they should be three, four years down the line?

59:29 I can't say the exact number, but the kind of road map we have, it might cross thousand close very comfortably. Both these combined? No. I'm talking about. No. We lose individually thousand crores. No. No. We'll see probably looking at 607 crores and products we could cross in more than thousand crores. Okay. Products will be thousand and aerospace 607 crores. That's it. Okay. Okay, sir. Thank you. Thank you. In the interest of time, that was our last question.

1:00:15 And I would now like to hand the conference over to the management for closing remarks. Thank you, and over to you. Thank you, everyone, for joining us today and spending your time to join our earnings call on our website, q one, FY twenty seven. I would like to thank all every... All the employees of the entire... Contribution they have done and even moving forward as well. And I would like to also thank the shareholders for their trust and faith in MTARTECH and continue to support the company moving forward as well. Thank you so much. Thank you. On behalf of MTARTECHLOGIES Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.