Jash Engineering Limited (JASH) Q1 2027 Earnings Call Transcript

Good afternoon, everyone. I am Siddhis Chavan from Ernst & Young, and I would like to welcome you to the Just Engineering Q1FI27 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&A session at the end of the presentation. If you wish to ask a question during a Q&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 a day, and the transcript of the call shall be made available subsequently. To take us through the results and answer your question today, we have the top management of Judge Engineering Limited, represented by Mr. Pratik Patel, Chairman and Managing Director, Mr. Dharmendra Jain, Chief Financial Officer. Now, I would like to draw 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 risk, 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. With that said, I will now hand over the call to Mr. Pratik Patel. Over to you, sir.

Good afternoon, everyone. Thank you for sparing a valuable time and attending this call. I would now like to present the results for the first quarter. During this quarter, we reported revenues of 156 crore, which is quite a significant improvement year on year by around 17%. And also our pet has turned positive in comparison to last year. So I would say the improvement has been there over 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 valve manufacturing expansion. This increases our capacity by up to 30 percent, and this will help us a lot in future in meeting our projected revenue targets. 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. This year, we now shift from India. Two, 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 on the Gulf, and the U.S. has issues related to Mr. 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 1,500 crores by 2031. 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. In case of Singapore, we are not delivering because we have some problem about getting the payments, And so, we are erring on the side of caution by not dispatching the materials. If those things would 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 PED 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. Next. On the standalone basis, the two good news has been at just engineering and at waterfront. In case of just engineering, the revenue has increased 21% and our bet 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 are now in profit in this quarter. And sometime back during the last... Meeting, I said that this year we expect Waterfront to achieve 5 million plus in revenue with a significant profit, and we maintain it will happen. As far as Rotony Hunt is concerned, there is no... Cause of concern, we are quite confident that this year we will achieve our projected revenue in excess of 35-36 million dollars and would be able to show profitability. What you see today is something which is the first quarter blues, but I am sure that as we progress in the other quarters, we will see improvement at Rodney and 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. Thanks. 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 pet as well as the EBITDA margins. As you can see, in case of waterfront, we have a 35-34 crore order book. In MAHAT, 31 crore order book at Rodney and 369. In JUSH versus equipment is 29 crore, which is quite low compared to what we expected. And in JUSH engineering is 559 crore. If you add the orders, which we have already executed, the revenue till 31st... June, 30th June. 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 875 crore revenue target, which I had informed in the last meeting.

Next.

Our pipeline of orders still is strong. We have already negotiated orders worth 72 crore and various orders worth 60 crore are under negotiation. 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 to 72 crores something similar next month also, this month also. This shows our consolidated income statement. As you can see from quarter 1 of FY27 and quarter 1 of FY26, there has been improvement at all stages. What is quite heartening is that the gross profit margin in Q4 and now is nearly the same, and generally in the Q4, the gross margins are better. However, if we are able to get it improved in Q1, then it gives a good feeling for the whole year. In view of this, I am quite positive for this year, as I have already informed before.

Thanks.

We have given a sales outlook of 875 crore with revenue within India of 320 and outside India of 555 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. I hope there is no big issues like last year and that we would be able to comfortably sail through with these figures. Thank you for patiently listening to me. Now, I am 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. We'll take the first question from Kunal with Ingrid. Please go ahead.

Hi, sir. Very good morning. Very good evening. Sir, I've got a set of numbers. So my first question is, sir, why did we not include the product level, you know, sales, bifurcation, percentage, breakup, and region-wise breakup in the presentation? Can you just maybe broadly give me that range?

Shri Kunal, we had a long discussion with our IR team, and what we concluded was that this is the region-wise order booking, and product-wise order booking is something which is very drastically changing from quarter to quarter. More... The 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. Sir, so if you can maybe give a breakup of maybe region-wise just a percentage of how much revenue was from the... Domestic region versus international. In international, how much sales was from US and other rest of the world?

Yeah, that we can give. However, it is already there. The revenue figure is already given in the second slide, where standalone is there.

So that will give you the same results, last pitch. Last pitch, segmental, we have given the same results.

And in the results also, if you go on the website or on StockAction, you can find out these details.

Okay, sir.

So now you will not be giving, you know, like India, Europe, Far East, you know, US, so that and UK, that will not be the thing going ahead. Now we will only give the consolidated order book and segment wise, entity wise order book.

So, all those data would be in year-to-year. So, year-to-year would be much detailed so that you can compare. Because, you know, one big order is executed in a certain quarter, all the data gets skewed.

And out of bump, 150 turnover, 70 is in India and 80 is out of India.

Okay. Sir, and 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 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 recall, we had informed that we have got 5.6 crore, something like 5.6 crore as tariff refund. Refund, yes. Yeah, so obviously that has also helped. But it is a combination of both.

Sir, tariff refund is a part of the revenue? What is it part of? Offset the consumption. Oh, consumption. Okay, okay. And, sir, how is the, as you also mentioned in your opening remarks, that the JUS process equipment which has shipped, has, Shivpad and Vestek. No, it is not Shivpad. It is only Vestek. Okay.

Vestek name has been changed to Jush.

So Shivpad has been merged with Jush Engineering completely. Yeah, it was already announced before. So my two questions. My first is the performance of Jush Engineering has benefited more because of the standalone business or Shivpad has also.

It's all very small to our total revenue. So, there's only 10-15% of the revenue. So, not because of Shippat.

Okay. And also, if you can throw some light on what are the concerns that you are seeing in, you know, the judge process equipment.

See, whenever you acquire a new company, 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 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 it's not going to be as easy as we thought in the beginning.

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 a recent option. We'll take the next question from Ishwar. Please go ahead.

Hi, sir. Thank you for the opportunity.

Congrats on a good set of results this quarter.

So the question I asked was the new, I had was the new FAQ that you released. You also mentioned a data center opportunity, which was new 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 a high-fascaler or Indian data center DTC player? Like Yota, AWS, Microsoft, or...

So, we are not supplying to them. We are supplying to their vendors. The vendors who are doing the refrigeration or air conditioning, etc. 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 got the first order for four numbers, and we are negotiating another order for 32 numbers. In fact, we have quoted for more than 600 pressure vessels, enough to make a new plant. So it is an exciting development for us. It is a big business. 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, 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.

Got it, got it, sir. Thank you. And regarding Rodney Hunt, the $35 million revenue target we have for the next year, like how much path 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 25% tariffs?

I would say the post-tariff order, that both would be like… 40-60%. 40% would be old orders and 60% would be new orders. We are expecting a PAT margin of around 6 to 8, 9% range.

And when do you expect it to reach the 10% PAT margin we've targeted? Would FI28 be a realistic assumption to make?

I would say that this is too early for me to project it like that. And the reason for that is Mr. Trump. Now they are talking of putting 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 FY28. But otherwise, let's keep our finger crossed.

Thank you. We will take the next question from Sudeep Anand. Please go ahead.

Good evening, sir, and congratulations for a good set of numbers. So, in the opening speech, you mentioned about some dispatch issues to Qatar and some payment issues from Singapore. So, has those problems got solved during this August, September? And how do you see this going forward, say, in H2FI27? 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 a particular client. We have not got the old payment, so a large consignment we are not sending. In spite of having carrying a letter of credit, we are not sending because whatever was balance payment due for earlier consignment, we have not got. And the consignment for Qatar is stuck because of the Gulf War. Now, when in beginning, there was 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, in the US, what's the current tariff structure over there?

15.6%. 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 expensive front, what's the current status in terms of Saudi Arabia new plan which we are looking for?

See, in case of Saudi Arabia, we have already got all the permissions, ECAMA, etc. 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 Sanjeev Marwa. Please go ahead.

Hi, good evening, everyone. Sir, I just have one question, and you touched upon that point regarding this Russia sanctioned oil bill, which US Senate has passed. Now, assuming it sees the daylight, what is your plan of action and what are your thoughts? I know it's early days. I don't know 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 have been telling you that we have been circumcised regarding taking the orders 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. If push-tops to show, then we may have to manufacture more in America to overcome that situation, but we'll see as and when it happens.

Sure. So out of 630, no, sorry, what was the number? 639 was the total exports order book.

300 and something is in America order book. You can see from the slide. 300 and something was in America.

So 70% of that is what you're saying can be managed through a Rodney Hunt. He's already planned. Okay, he's already planned. Understood.

Understood.

And when I say 30% in India, it is 30% means around India would be around 10-12% and then overhead and profit would make it 30%.

Got it. And sir, just wanted to understand, are you thinking on these lines in anticipation of these increased tariffs? Are you thinking 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 budgeting and doing it. So 15.6 is there, we are considering 25, but we cannot consider 100, otherwise we will be out of the market. So we already have, based on past year experience, I have already ensured that we are considering a little bit more than what is currently applicable. And if it is within that, then we have a better profit. But if it goes beyond that, then there is a problem.

And just last one from my side, sir, in FAQs, you had mentioned that this year's pat margin, you are, earlier you were saying 12 to 13%, but now I think post refunds and probably the order book and the execution of Q1, you are thinking 13 to 14% is what we should realistically, they can write from pat margin perspective.

See, in the Q1 itself, for Josh Engineering stand-alone, that margin is nearly 13%. For waterfront also, it has improved. So, yes, it is possible. But as I said, we have to see from what happens. If there is some another geopolitical situation arising and that results into another chaos, then we don't know. So, I would say we are in a position to achieve 13 to 14, but it depends as we progress in the year.

Thank you so much, sir. Thank you for answering the questions.

Thank you. We'll take the next question from Salil Desai. Please go ahead. Thanks, Shibresh.

Pratikbhai, 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 you can give an update on how that's going, if there is an implication for margins.

So, Mahar, Machine, and Bhav, we already are taking orders, but we are not manufacturing, and we don't intend to do manufacturing in Austria. However, the products of Mahar are now already, we have got first two big jobs in the UK for those, for Mahar screens, and these screens, two screens are for the British market, and I think 14 screens are for Iraq. 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 Mahamashir and Bhav 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. You slightly modified what you were already making to make it suitable for this application.

So, what was it being used for earlier?

What was the core application that you were serving earlier?

We were supplying a pressure vessel for transmission lines, 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 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.

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 Vedant Rani. Please go ahead. Hello.

Thank you so much for the opportunity, sir. I would like to ask that, you know, considering how our Q1 has been for past couple of years, this year has been quite good for us. So, does this revenue also includes the 35-36 crores, which you mentioned in Q4, that has been deferred, but not booked as a part of revenue in Q4?

It is routine. Same thing happened in June. So it is now compensated. Edit whatever not done in March and revert whatever not recognized in June. So around 27-28 crore we have reversal in June and added to the last year reversal.

Okay, so my question was more like operationally we would have been positive this quarter if this was not the case?

Yes, because 36 minus 27.

Got 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 increased in order bookings from US?

Do you think that I should aggressively go for order booking when Mr. Trump is saying 100% tariff on India if they import Russian oil?

Yeah, right.

We cannot. In fact, we are negotiating some very few of some orders, which are very big. Each order, two, three orders and each order in excess of $7 million. And we keep our finger crossed that before we get those orders, this crisis is resolved. Otherwise, we will be in a deep mess. So we are ourselves not pushing for finalization of those orders.

Got it, sir.

And, sir, could you please repeat again the timelines for the Saudi project, like the commercialization and trial runs?

See, 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. If we get the plant ready by end of next year, when I say next year is December 27th. If we get the plant ready by December 27th, then by end of the financial year 28th, it should be in operation.

Got it.

March 28th, it should be in operation. Both. That as well as Houston. Both.

Got it. Thank you so much. This was my question. All the best.

Thank you. We will take the next question from Yoganj. Please go ahead.

Hi, thanks for the opportunity. Am I audible? Yeah, congratulations on a good set of numbers, sir. Just two follow-up questions. Most of the things have been answered by you. 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 business?

So, one vessel would be between 30 to 50 lakh rupees depending upon its size. 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 35, 40, 50 lakhs into 32. So, 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.

So this could be a 25-30 crore business opportunity if we work at the full scale. So secondly, if suppose you have to scale this business up, given the setup you have, do you think you have scope to increase this capacity or it will take a lot of time and hamper the remaining business that we have?

It will affect the remaining business we do because the demand which we are seeing is like crazy. So once we are very confident of a 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?

Exactly. That would fit in our future expansion plans. As of now, we believe we have invested enough in India to cater to 1500 crore revenue. Most, in future, most of which will come from Saudi Arabia as well as from the Houston plant. However, if required, if business opportunity exists, 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 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 lag, so I might be repeating this question, so apologies for that. The tariff reversal that you mentioned, some five and a half crore, are we expecting more tariff reversal? If yes, around seven and a half crore. Seven and a half is more pending. So are we confident that that will also get sorted this financial year or it could extend?

No, no, in this financial year. Just to give you an idea, that calculations and everything is ready and is being vetted by our lawyers. Once he says 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 sir, 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. 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 U.S. 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 we have been crying for competent manpower. This should not be a problem in time to come for us. At least in Orange, I don't think that based on the feedback from Rahul that this is going to be a big issue in the future. This is not going to be a big issue in the future.

Fair enough, sir. I think all the best to you and your team for all the good work that you are doing. Thank you.

Thank you. We'll take the next question from Shreyash Misra. Please go ahead.

Sir, good evening. Congratulations on an awesome set of numbers to you and the entire team of Josh. I have a very simple question. I understand that the U.S. has been a little difficult because of the changing goalposts and the leadership, et cetera, et cetera, where you also made certain comments. Just to understand, are we looking at any different geographies also in due course of time apart from Saudi and U.S.? If yes, where would we be interested? I mean, what's your thought on that?

Thank you. So, 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 a lot of capital expansion. 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, Mr. Rishi Chopra, will now be visiting Australia and New Zealand next month. I am going to, planning to go to Vietnam and all the other areas, Jakarta, etc., where we have got initial breakthroughs now. So, 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 today to leave any other country. to have manufacturing facilities.

Thank you, sir.

Thank you. We will take the next question from Kunal. Please go ahead.

Hi, sir. Sir, my first follow-up question will be, sir, in the presentation, you have mentioned expected revenue from Mar Mashinbao 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 was probably done before. Okay. So does that then revise our 875 pros upwards? Let it keep it at that. If we are able to revise, we will be happy. Okay, okay. And sir, what is the revised CAPEX estimate? Usually in the FAQ, you mentioned... I think it is mentioned in the FAQ, no?

It is mentioned in the FAQ.

I was not able to see CAPEX plan.

Yeah, you can see them. Okay, the board report we will not upload.

The board report we will not upload. I can send it to you separately, but it is around $12 million for America and $4 million for Saudi.

Okay. It is there in FAQ also, Kunal. I saw it.

If I remember well, around $12 million.

I'll just have a look at it again. So, my next question is, sir, how will this be funded? I mean, in terms of, are you going to be taking some long-term debt to fund it?

Let me first clarify that we already have some $3 million in deposits in America, which we had raised for the plant. Okay. Plus internal accruals, plus some debt, but I don't think the debt would be very high.

Okay.

Three to four million, but we are just looking at how to structure it once we get the complete offer from our plant manufacturing vendor. We have got few offers, we are reviewing it. I will be going to America next month and then we will finalize one of the vendors and then we will see how to fund it. However, we have approached the banks in America and they are all willing to fund us.

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?

We're still at the same situation. Improving, we have got a new production head. He's someone we know. He's coming from Vestek. So he was an employee in just 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.

Okay, sir. And the current order book that we showed for Just Process is basically the Vestek order book that was there? Only, yeah, that is Vestek, Vestek is Just Process. Nothing to do with Shepar. Any new order booking has happened in that or it's been, no, no new order booking?

Very small orders. In fact, we lost close to 150-200 crore worth of orders in last 3-4 months. Which was quite shocking, and that is why we are having an intense review of everything at Just Process.

Okay. And sir, I'm seeing a lot of sewage treatment plant, you know, being rolled out for, you know, manufacturing. What is our view on that? Are we aggressively, you know, pitching Josh 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 Vestek, they had Vortex grid separator. And for years, that was actually sealed. We were not able to get a reliable technology. However, Vestek had that technology, and so now we are able to offer Vortex grid separator at Just, but using knowledge from Just Process equipment. And as a result of that, we have already started getting orders. I think we have got around orders for 12 Vortex already. So, overall, the basket of products we offer has also improved, and the type of products we are offering as a package has also improved.

Okay. And, sir, the 960, I think, 963 crores of order book, I think. 932. 932 crores of order book is to be, how much of it is executable in this year? I mean, is it just the balance of 875 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 will be able to execute everything, point number one. Point number two, some are already, some orders are for deferred delivery in next year. Two, and three is. Yes, we have enough order to go above 875 also. But, you know, we are in projects, and projects sometimes become fast or sometimes slow down. So, when we say 875, it is realistic and healthy, I can say that there is a good possibility to overcome that and grow much beyond it. 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 FI-28 on revenue? It's already given.

And even in FAQ, it is given. I think 1025 or something like that.

1025.

1025, if I remember well, it is around something like that.

Okay, sir. Okay, thank you, sir.

Around 1,000 crore.

Thank you. We'll take the next question from Sanchu Marwa. Please go ahead.

Sir, 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?

Around 15 crore. Okay, in total?

Yeah. Okay. And so just second thing, coming back to that Russia sanction bill, so have we now, given there is no clarity on this front, have we sort of decelerated our, you know, bidding for projects, you know, because of this gray area right now? Have we sort of slowed down in bidding for projects? Everything has not been slowed down, but…

Aggressively trying to get orders has been slowed down because the situation is so alarming that if something goes wrong, we spoil the next year.

Yeah, correct.

So I would say current order book in Rodney Hunt is close to 40 million dollars.

Right.

And that will easily take us through this year and portion of next year. So, I would say, let us see some clarity on this, and then only take a call on being aggressive or not being aggressive. Anyway, next month I am in America, and we will review everything once again and decide.

Thank you so much.

Thank you. We will take the next question from Deepali Shahu. Please go ahead.

Yeah, Dilip Shahu here. Okay. Pratikji, I 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 collateral damage. My question to you, sir, is. If we have an aspiration to be, say, number one or two in UK, number one or two or three in the US, how does that reconcile with a 15% growth? Because obviously, in too 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 don't...

Match. They don't add up. I understand that. But I've 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. So what I am saying is my projections of 1500 crore 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 am 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 an effective, and based on the changed condition there, I may increase it also. So, projecting five years in advance today is not an easy task considering what all is happening worldwide.

I completely appreciate, sir. Sir, my question was slightly different in the sense that, you know, Rodney Hunt used to be a very large company around 10-15 years back before we acquired in 2018 or 17. Um, now, um, The existing competition is from local guys as well as from outside people, like 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 US?

See, understand one thing, it is a given that in future also US will have make in America policy. And make in America policy will need lot of investment in America which we are doing now. We have 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 2020 at March, we would be on a sure footing or better footing to give more concrete projections.

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 I think there is also 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? Because a lot of things can happen.

So let me clarify on the UK. When we started with this company, there were only 9 people. From 9 people, you cannot expect huge things.

Today, we are around 23, 24, 24 people,

and we are building the team. So, even if there is a market, if your team is not there, your systems and capacities are not there, you cannot rapidly grow. So, 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. These are not mass-produced items. These are discrete manufactured products. So, we believe, and we are still talking about, last year we did less than 3, and we are talking about 12 in 3 to 4 years time. This is, 3 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.

Yes, sir. Thank you very much, sir.

Thank you. We'll take the next question from Amitabh Batsya. Please go ahead. Thanks for the opportunity, sir.

Amitabh ji, one minute, and let me give my opinion on the last question asked by Mr. Savu. 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 understand. It is obviously 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 150, 200 crores. It won't be a difficult thing for you.

Money is not a criterion for me. The team is a criterion. We are expecting 100 crore plus profit this year, so we have enough internal accruals.

Sure, I understand.

Team is the main problem because of the type of industry and type of products we have.

Yeah, I understand. Yeah, thank you.

Yeah. So I have two questions. One is with respect to Singapore, because one or two quarters ago, we have been discussing about some 6000 crore kind of order bid which we have submitted. So what?

Let me clarify. That was given for making the project reports. That was not the bid. The budgetary reports and these projects are going to be executed over the next 20 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. But such big projects would be spread out I'm sure over 1520 years. Okay. Because that is my equipment. My equipment is hardly 10% of the project cost. So we are looking at 60,000 crore investment which Singapore government will do because they have to plan for 2,100. So they are also in not a daring hurry to do it. They will also plan it in a way that their finances and everything is in control.

Okay. So second question with respect to one unique aspect which Jazz had with a company called Invent. So are we working on similar synergetic arrangement with other OEMs or how are we gaining technologies 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?

We plan to expand into related products. We are seriously looking at certain acquisitions or things like that. And in time to come, when we are sure about it, we will definitely inform everyone.

And just to follow up on Valve, are we seeing any traction or do we have any plan to use Valve 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 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. Waterline walls, general waterline walls for municipal business, we are not focusing on it just now.

Thank you.

Thank you.

We take the next question from Kunal. Please go ahead. I just have one question. So domestic opportunity for water control gets about 150 crores as per the FAQ. And I think we are about at 100 crores in the domestic market. So we are controlling about two third of the market share. But whereas if we see the market potential for, you know, industrial process equipment or mixing aeration equipment, which I think we are developing with Josh Invent, The market for that is about 200 crore and industrial process is 400. So that is a bigger market in terms of... The total time. So, do we see maybe in the next 5 years as we achieve 1500 crore, the share of this will substantially increase vis-a-vis water control gates?

It should. I don't know whether we will be able to achieve it. As I said, in case of industrial process equipment, we lost 150 to 200 crore worth of orders in last 3-4 months only. So, we need to put our act together. We have found out where we lacked and big orders whether we can get or not and that will involve in-house manufacturing. Presently, the model of VESTAC, 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 got added up on profits, etc. 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.

Sir, who was the biggest competitor on domestic market for us in this segment?

Tega. Then, you know, Tega is there, one, then another is Delcor, then Metsofinerals, etc.

Okay, sir. Okay, sir, all the best.

Thank you. Thank you. That was the last question. I will request Pratik, sir, for a closing remarks.

So, thank you once again, everyone. 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 am quite bullish now because I see most of the things falling in place. The only worrying aspect now is the new announcement by Mr. 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, Here, which is 875 crore with around 100 to 105 crore. Thank you.

Thank you for joining us today. If you have any additional questions, you can reach out to us anytime. We wish you good health and look forward to seeing you again in the next quarter. Have a good day.

Thank you.

Thank you.