Sanghvi Movers Limited (SANGHVIMOV) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good afternoon and a warm welcome, everyone, to Q1FY27 Earnings Call of Sangvi Movers Ltd. Please note, the investor presentation and the financial results are available on the company website and the stock exchanges. Also, anything said on this call, which reflects our outlook for the future, or which could be constructed as a forward-looking statement, must be reviewed in conjunction with the risk that the company faces. The conference call is being recorded, and the transcripts along with the audio of the same will be made available on the website of the company as well on the exchanges. Please also note that the audio of the conference call is the copyright material of Sanghi Movers Limited and cannot be copied, rebroadcasted, or attributed in the press or media without specific and written consent of the company. From the management side, we have with us Mr. Rishi Sanghi, Managing Director, Mr. Goran Desai, Chief Executive Officer, and Mr. Pradeep Mehta, Chief Financial Officer. Now, I request Mr. Pradeep Mehta, the Chief Financial Officer of Sangvi Movers Limited, to provide you with the updates for the quarter ended on 30th June, 2026. Thank you, and over to you, sir.

Thank you, Huda, and good afternoon. Thank you all for joining us.

I will take you through quarter in four parts. One, the headline number. Two, the sequential compression. Three, the core crane rental margin, which I expect is on everyone's mind, which I will explain in this discussion. And then the last is balance sheet and capax. On headline numbers on concrete basis, review from operations for Q1 FY27 was Rs.380 crore against Rs.273 crore in Q1 FY26. That is growth of 39%. And total income was 393 crores against 281 crores, growth of 40%. EBITDA was 139 crores against 107 crores, growth of 30% at a margin of 35%. Profit after tax was 65 crores against 50 crores, also 30% growth. The cash profit was 104 crores against 82 crores. I want to address the sequential picture directly, because year-on-year numbers tell only half the story. Against Q4 FY23, the revenue rose from 350 crores to 380 crores, that is 29 crores up, but EBITDA was 139 crores against 143 crores, and margin was 35% against 40%, and profit was after tax was 65 crores against 69 crores. So, overall, we grew the top line and gave that margin, and that is a real outcome, and I will now explain exactly what caused it. The core claim rental EBITDA margin moved from 53% in FY26 to 47% in Q1 FY27. That is a 6% point draw. So, there are four components for the same. Two points related to a higher expected credit loss provision driven by aging of withdrawals that is around 6.2. We expect it to rationalize over the course of this year as collection improves. One point is regarding mark-to-market reinstatement of foreign currency loan and that is 1.4 and it is a non-cash accounting entry. One point is one-time incentive paid to frontline employees and two senior management teams, because company has devoted for first time surpassing 1000 crore top-line and extraordinary performance by the employee in FY26. The remaining two points are change in revenue mix during the quarter. We saw incremental demand through higher ancillary equipment and through gross rental of crane. This is rather than doing fresh capital expenditures. I want to be precise about the last item that I explained because it is one that is structural. It is a deliberate capital allocation choice, not a margin leakage. Because higher equipment and cross-central carry a lower percentage margin, but they consume no capital. Therefore, this is accretive to ROSE and cash generation. Because while these are being optically dilutive to reported margin, however, it is without investment. So we prefer to earn lower margin instead of investing more capital on this fund. So putting together excluding this correct and incentive item, the underlining poor margin for the quarter was approximately 49%. Any of the great provisions rationalize as we are expecting. In during the course of the year, the return towards 51%. Checking all together, we regard these poor margins are structurally intact, and our guidance for 27 is still between 525

crore to 575 crore, which is unchanged. Since I have raised the credit cohesions, let me also give you the working capital position.

Group days, sales outsharing is 116 days. This includes Grain Rental 124 days, Renewal ENC 98 days, and GCC Business 201 days. This year's collection is very foca, and in GCC collection has improved in the month of July after the end of quarter June 26. On business mix, the Grain Rental contributes approximately 60% of revenue from operation, and 37% renewal ENC, and balanced 3% from project EPC. Renewable business will run ahead of our full year meets in Q1 on execution phasing, and for the full year, we will continue to expect roughly two-thirds revenue from current rental and one-third from renewal E&C business. As the revenue will scale up in the second half, fourth year will be following to the capex which are going to happen in the remaining part of the year. On the operation side, our consumer clicks has stood at 492 crores, and gross block is approximately 3,300 crores. The India and Botswana business reported utilization of around 86% at a yield of 2.29%, and the GCC business utilization of assets is 86% at a yield of 4.10%. And that yield differential, that is between 4.1% and 2.29% is the core of Middle East investment. GCC total income was 19 crore at an EBITDA margin of 23%. And this Dowdy operation has now delivered cumulative EBITDA positive performance. On Melan Street, gross debt equity stood at 0.54 times against our guided effort selling. 0.72 times and group growth was around 16% as well March 26th. On CAPEX FY27 full of 652 gold. As approved by the Board of Directors, 92 crores already capitalized in Q1, and balance deployment is in second half. We are continuously checking OEM delivery and project commissioning date, and this 560 crores will be deployed in the remaining part of the year. We are expecting approximately 15% increase in revenue within FI27 because of this investment. And substantially all the crores are revenue generating. With that, I will hand over to Mr. Gaurang Desai, our Chief Executive Officer.

Thank you, Pradeep, and a very good afternoon to everybody. It's always a pleasure in connecting with all of you. So, quarter one of this financial year has been a good start of the year. Total income of 393 crores, growth of 40%, and order book of almost 250 crores. So, Pradeep has I have been candid about where, margin, mood, and why. So let me begin by sharing our perspective on business environment and the opportunities ahead. India continues to be the fastest growing major economy, closing the last financial year with 7.7% of GDP growth, while Q1 FY27 is tracking at around 6.6. Most importantly, the quality of the growth remains investment-led. Government capital expenditure is at record 12.2 lakh crores. Manufacturing and construction continue to expand. Financing costs have eased 100 basis point, reduction in the repo rate, and inflation remains well under control. So this environment is particularly encouraging for Sangee boards because this investment directly translates into demand across the sector we serve. Including refining, steel, cement, power, renewables, infrastructure, and heavy engineering. Against this favorable backdrop, we enter FY27 with a position of strength. We have a secured order book, as I mentioned, of almost 250 crores, which is fully executable within this financial year, providing strong revenue visibility. In addition, we have a healthy project pipeline or inquiry pipeline of almost 5,600 crores across multiple sectors, giving us the confidence in sustained business momentum. Combined with our diversified sector presence, this provides greater earning visibility while reducing dependence on any single industry. So, let me talk about the industrial sector. On the demand side, EMEA is adding capacity across every sector we serve. Wind added a record of 26 gigawatts last year with almost 29 gigawatts under construction. Herman has given 62 gigawatts under bed for an award. Steel is targeting 300 million tons by 2030. And cement is adding over 160 million tons. Nuclear, I am sure all of you will be aware, is open to privatization under the Shanti Act.

Each one of these require a heavy lift. The industrial sector continues to offer

significant opportunities for sun removals. We are witnessing a broad-based investment cycle across all the sectors. And over the next few years, this industry is expected to add significant capacity, creating long-term opportunities for heavy lift and specialized crane service. The energy sector remains another important road story for the company. India's rising power demand and ongoing energy transition are driving investment across wind, thermal, and nuclear power. Sankring Future Reliable continues to strengthen our position across the wind value chain. It's an asset light, high return on capital, and a complement to the core business. It generates incremental EBITDA without consuming capital. And it secures demand for the crane fleet through integrated execution. It also closed the quarter with an order book of almost 680 crores. Our Middle East business, as Pradeep mentioned, achieved cumulative EBITDA positive performance during the quarter. This is an important milestone in the first year of operation itself. We have secured new orders in Qatar and we have completed Botswana commissioning on schedule, you know, repatriating almost 1.1 million dollars to India. So in terms of, let's say, pipeline for the Middle East, you know, are visible, are 0 to 24 home pipelines almost around 38 million dollars. Let me talk about strengthening the organization. So, Elevate 2030 is progressing in line with our commitments. We have moved from a single country crane rental business to a group operating across India, Saudi Arabia, Botswana, and Qatar with a professional leadership team, a broader product portfolio, and high return business models. Beyond this, market opportunities, we are equally focusing on strengthening our organization for the future. So, enhancing customer-centricity through digital initiatives that improves our responsiveness, transparency, and service delivery. Pursuing international expansion by exploring attractive growth opportunities in new markets, enabling us to diversify our revenue base and strengthen our global presence. Advancing our digital transformation, we are scheduled to go live for our new HRMS and CRM softwares. In terms of outlook, our guidelines stand as published. So consolidated for FY27, consolidated revenue of roughly 1,400 to 1,500 crores, EBITDA of 525 to 575, and a blended return on capital of 16.25 to 16.5. To summarize, the core is healthy, renewables are scaling, international is gaining traction, and the order book gives us visibility for the year. We remain focused on disciplined capital allocation, on safety, and on sustainable value creation for our stakeholders. Thank you so much, and we can now open the floor for questions.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Vivek Raghulia from FinCom Family Office. Please proceed.

Very good afternoon. Am I audible?

Yes.

Thanks a lot for the opportunity. My first question is that FI27 capex is roughly 190 crores in India versus 200 crores in KSA. If you had one incremental crane and you could place it on either side, where does it go today and what is the deciding factor for it? Is it yield, utilization, tenure, payback or anything else? That's my first question.

Good afternoon. My name is Rishi Sanghvi, and thanks for that question.

So, you know, as we open international markets throughout the world, our role becomes, transforms from being a grain rental company to a capital allocator. There are several factors that determine whether we will invest a dollar of capex in a particular market. Primarily, what is the inquiry pipeline? What is the order visibility? What do we need to do? What is the order duration? What is the look-ahead visibility for a grain? What do we need to do in order to secure our market share in that particular market? What is the internal hurdle rate for making an investment in a particular grain? So, there are several factors that get considered prior to deployment of capital. What we are focused on is being a judicious capital allocator, ensuring that the group is maintained and that all investments meet our internal IRR criteria before we deploy capital.

Thank you for that answer, sir. You know, continuing on the same lines, is this shift towards KSA a positive view on Saudi, or is it partly a view that India's crane rental yields are structurally capped by competition? You know, how do you see competition in India shaping up, say, over the next one to two years and overall demand and supply scenario for the crane rental airport since last year?

You've asked four questions in one. So, maybe I'll try and answer one out of those four questions. So, Saudi is not a response to India, and India is not a response to Saudi Arabia. What is happening in Saudi Arabia and our investment thesis to go to Saudi Arabia has always been that there is a tremendous amount of opportunity and demand for grains in Saudi Arabia. And as we are already witnessing at youth and utilization levels, often utilization levels at par with India, but youth that are much higher than India. Now, in Saudi Arabia, because of the Vision 2030, the FIFA World Cup, the Expo, World Expo Games, and the Commonwealth Games, World Expo Games, not Commonwealth, the Games, The World Expo and a number of other projects. The entire economy is modernizing and there is a tremendous amount of activity that is taking place in the Saudi Arabia market. This is not to mention what Saudi Aramco will do across the next five years, which will spend almost half a trillion dollars. So, Saudi Arabia today is the construction backyard of the world and we see tremendous amount of activity happening across all cities. Our investment thesis to go to Saudi Arabia was correct because as Pradeep has announced, we are already cumulatively EBITDA positive in the country and we continue to deploy capital in the region. If you look at it from an India perspective, yields in India have improved. Over the last quarter, we have been able to shift yields. So, yields are not being capped by competition, and there is a tremendous demand for grains that still remains in the country. So, we are positive on both markets. For us, we are building two markets where we are pivoting into becoming capital deployers, allocators. And where we will chase the right return for the company with the right fleet, all keeping in mind that we have to deliver ROSI for the company and for our stakeholders.

Thanks a lot for that elaborate answer. So just one last short question would be that, are you seeing any changes in terms of client behavior on contract tenure or, say, rate resets in India? Like, for example, is a tier one client pushing for a shorter tenure or a rate negotiation as in when more fleet becomes available?

Hi, this is Garan. So we don't see any material shift in the customer's perspective as of now.

Thank you very much, and all the very best. Thank you. Thank you, Rick.

Thank you. The next question is from the line of Abhinav from Equitas Investments. Please proceed.

Hi. Thank you for the opportunity. My first question was regarding the revenue mix. Since you mentioned you'd be having one-third of your revenue from renewables, so do you expect margin decrease on the total basis? What is the EBITDA margin going forward?

So, Abhinav, thanks for the question.

This is Rishi again.

So, what you need to understand is that Sangreen is an asset-light, high-row-seat business with a lower EBITDA market. We are able to grow the renewables business beyond the balance sheet because it doesn't require us to deploy capital in Sangreen Future Renewable Limited. It is working capital asset-light. So, the entirety of our capex still remains dedicated to our crane rental business, of which we are doing 652 crores this year. And this is still being deployed at, you know, a minimum 80% utilization, 2% here. The crane business is a capex-heavy The crane business is a capex heavy, high EBITDA business. So, these two businesses that we are talking about, where two-thirds revenue is coming from the crane vertical across geographies and one-third revenue is coming from renewables, they are truly complementary. Now, in terms of guidance, we have given you a detailed guidance in the presentation, which is available on page number 25. This is the KPIs for Q1 quarter, and the guidance is further available on page number 90. So, for FY27, we are projecting EBITDA in the range of 525 to 575. Yes, the blended EBITDA margin will be lower, but in absolute terms, it has gone up significantly as the EBITDA in FY26 was 429. So, we are forecasting a 20% to 30% growth on this EBITDA for FY27.

Hi Rishi, this is Rida Yash. So the question is, in terms of debt portion, so in your guidance as per the PPT, it is mentioned that the debt to equity would be around 0.72. So if you just take a conservative approach and take your next year equity, the debt would be more than 1,000 to 1,100 crores between. Is that understanding, right?

Bye-bye.

0.72 is on console basis. Right? Right. So, what is your question? Say again.

So, basically, considering if you do somewhere around to 300 crores, fat levels, and if I think...

Sorry, you are not audible. You need to come again into the... We can't hear you. Hello.

Is this better?

Yeah, tell me.

Yeah, so this is the guidance given. My debt to equity is 0.72 for the next year. After my calculation, it gives me that we would reach a debt of around 1,000 to 1,100 crores. It's my understanding, right? And this is a comfortable debt position we would be going ahead with going forward.

So, this ratio is what we projected 0.72 is comfortable. We are considerably going ahead with that and the capex are accordingly planned, which will add on the EBITDA margin as well as we are completely under control of debt levels for the financial year F.27.

Yeah, the 0.72 debt to equity forecast is at a gross level. It is not at a net level. We are sitting on a treasury today of more than 300 crore surplus. So if you look at it, the effective net debt to equity is in the range of 0.3 to 0.3.

Okay.

And regarding the ECL provision which you have taken, this is for India client or KSA? And is this a one-time thing if you could elaborate more on the ECL provisioning?

It's mostly in India, nothing to KSA or any other country.

Okay. And also going forward, are you going to have a higher provisioning?

So, the ECL provision is expected to normalize in the course of the financial year as we recover debtors which has basically aged. If you look at it from Q4 to Q1, there was a positive swing where almost 3 to 4 crores of ECL provision was added back to the Q4 of FY26. So, this is nothing but a statistical model where the ECL provision has to be accounted for, and over the course of the financial year, we expect the ECL provision to normalize as we recover dues from the aged basket.

Good. And how much would be an aged basket? More than 90 days? Bye.

We have given you the numbers in DSO days. So you can look at it at a trained rental level, GCC level, and ENC business. It's already available in the presentation on page number 25. It's the last row. Sure, sure, sure.

And for KSA, when we say we are at 4.1, there we are purely doing screen rental business or we are doing EPC the entire mix and do we expect these margins to sustain?

So, yield is not a margin. Yield is a return on the asset. And yes, in KSA, we expect the rental margin to remain substantially higher. Going forward, we expect to maintain a 4% yield, notwithstanding the current situation that is there in West Asia. What is worth noting is that the EBITDA margin in KSA is lower than in India. It is around 47 percent. And the reason is because the cost of operations is higher in Saudi Arabia. However, in previous quarter calls, we have stated that as we gain experience in the region, we will be able to pull up the EBITDA profile of the business as we will leverage our 37 years of Operational history and legacy in India in KSA.

Got it. And in terms of EPC event, EPC in India, are we seeing any competition incrementally in the EPC space and that would lead to normalization of margins to around 10-11%?

So, first of all, we are not in the EPC segment. We are in the engineering and construction segment. We don't do any procurement as the turbine

is pre-issued from the OEM or the ITP.

There is competition, but none of the competition is organized. We are the only organized, well-structured, well-governed company, and this really matters with the clientele that we work with because we work with large PE funds who have platforms. Like such as which I cannot name in this call. And for them working with a well governed, well structured, financially solvent company with a proven track record of execution is extremely important. Our business has delivered almost 18 to 20 gigawatts of erection of wind turbines, and we have been in this space since the inception of the wind industry in India, and Sangreen has been able to leverage this legacy and the financial strength, the governance, etc. of the company to... Get preferential rates from its customers. And therefore, we believe that going forward, we will be able to normalize these margins between 12% to 15% in the ENC business.

Got it. Got it. Okay. I'll join back in the queue for further questions. Thanks, Rishi. Thanks, Conor.

Thank you. A request to all participants. Please restrict your questions to two per participant. For more questions, please rejoin the queue. The next question is from the line of Sunim Jain from Nirmal Bank Securities. Please proceed.

Yeah, thanks for this opportunity, and congratulations on the result, and also excellent presentation which company has said. So, my question relates to GCC. We are seeing that a lot of disturbance are there. So, how you see the capex moving in such a scenario, whether we are able to procure grains in Middle East or it's getting delayed, and what's the timeline you expect for your capex in the GCC?

Yeah, hi, Sunil, and thanks for your compliments on the presentation and results. We really appreciate it as a management. So, you know, given the situation in West Asia, the company has been spending a lot of the management, including myself, has been spending a lot of time in the country. And what we see is that there are no structural changes to the hypothesis with which we have come to the Middle East. We are still extremely confident and bullish in terms of what the country and the region is doing. And we see what we would call as a temporary disruption in supply chain, which will get normalized within this financial year, whether it's a matter of a few months or quarters is to be seen. With respect to our capex allotment, we will be doing approximately 300 plus crores or rather 324 crores of which 316 crores is in revenue generating capex in the region. Right now, the entirety of this CAPEX orders have been placed on the equipment manufacturers, and it is their responsibility to bring the equipment to Saudi Arabia. As far as we are concerned, we don't see any delay in bringing this CAPEX to Saudi Arabia, either via Jeddah or via Dhamma. And we believe that the entirety of the capital should come up line in terms of revenue generation between the third and fourth quarter of this financial year.

This is something great to hear from you, sir. So, second thing about your ENC business, it's one and a half year since we have come into this business and really seen great performance in that. In fact, you are a bit optimistic on the margin also. You are underwriting and we are getting comparatively better margin. So, I'd just like to understand your feeling about this business and how you see this business, because the pipeline also seems very strong in this. So, if you can comment on this, how we can see future in this in next two to three years.

Yeah, Sunik. So, if you look at slide number 25 in our presentation, we have discussed the inquiry pipeline of nearly 4,656 croons. Now, we have secured an order book of roughly 686 crores till date. We are confident that we will secure additional orders in the course of this financial year, as most of the orders for this year get closed in the second quarter, considering that the ENC activity in the renewables, the engineering construction activity, picks up in the second half of the year post-monstance. So, we see this order book growing. Currently, we are at 686 crores. So, our order book is more than our revenue that we had earned in the previous financial year. So, in a way, we are bullish on this segment, revenue segment, and really our ability to execute. And translate the inquiry pipeline to order book and order book to revenue is what is the decisive winning factor in this business. While we have guided, while you may say that we are under guiding and over delivering, what happens is in engineering construction business segment, as you scale, there is some deprecation of margin because your execution across projects may slow down. Due to both internal and external factors. You know, there are a lot of significant delays from the client side in terms of site readiness, OEM supply, local ROW issues. Sometimes there are internal delays or challenges in terms of project execution, which may result in a delay in revenue recognition and a translation of the order book to revenue. And this may sometimes reduce or Suppress the margin. Therefore, there is lumpiness in the revenue recognition dictated by the percentage of completion methodology of accounting. Going forward, you know, we started this business. It was approximately 250 crores in the first year. We have doubled that revenue. If you club SFRPL and SLPL, which is Sangreen Logistics and Sangreen Future Renewables, we have doubled last year. This year, it is our expectation to once again double. So, every year for three years, we are doubling, and going forward, we would like to maintain this pace of growth, again, with a caution that our execution abilities will dictate how much exposure and order intake we will take.

Great, sir. Great. Thank you very much, and all the best for the coming quarters. Thank you very much. Thanks, Vinay.

Thank you. The next question is from the line of Trishank Jani from Moneybee Investment. Please proceed.

Yeah, hi, thanks for the opportunity. My question is regarding the DSO days. So, the Middle East business is reporting a DSO of 201 days compared to 124 days for the India, Korean rental business. So, could you explain the key business for this significant difference and what is your target timeline to reduce the DSO days going forward?

Yeah, Mr. Tushan, thanks for the question.

I am sure that you are aware that there is a conflict between USA and Israel with Iran, and that has caused a certain amount of disruption in West Asia. So, this DSO that you are seeing is reflective of the situation that is there on ground. Now, this is a DSO position that was closed as of June. However, in the month of July, we have recovered a significant portion of the outstanding, and there will be an improvement in the DSO days, which will be published in our Q2 reserves, and will be visible in them. So, significant amount of collection has happened in July. Also, for this reason, Tyler years are... Definitely better than India. The EBITDA margin is around 47%. One of the things which is a known factor when we entered this market was a longer day sales outstanding process. So it is a known risk and we are doing a lot of things internally to monitor and ensure that this BSO is within control. It is, you know, I am happy to report that although we have such a large, or what we may perceive as a higher DSO as compared to India, we have a zero working capital draw in the kingdom of Saudi Arabia. So we are not pumping money into business operations to keep the operations running. And this is a testament to the kind of business that we are seeing that And our investment ceases to enter into the market.

Okay, I got it. And my second question is regarding the Sun Green. So, given your 2 gigawatt of order book and 5 gigawatt of inquiry pipeline, what market share do you expect Sun Green to capture in annual wind, energy, and construction section over the next 2-3 years?

So, first of all, we are not quoting 5 gigawatt and 2 gigawatt. We are saying our inquiry pipeline as of today stands at 4,656 crores, and our order book stands at around 686 crores. So first, I would like to just correct that statement, please. Secondly, in terms of market share, you know, with this kind of inquiry pipeline, we can convert. We have a significant amount of this inquiry pipeline to orders. But we have a reputation for delivering whatever projects that we take. And our ability to scale the revenue and build the order book and scale the revenue and eventually improve the performance of the company is dependent on our ability to scale up our execution mandate. So, going forward, In the last three years, as I described to you, we have doubled every year. From 250 to 500, this year, we are on track to double as our order book already stands at approximately 686 crores. Now, a certain percentage of this order book, around 15%, may get postponed into the next financial year on account of a delay in execution of projects caused by the clients or due to internal delays and inability to recognize revenue due to POCM methodology of accounting. But next year, we can significantly, I think we have already given a guidance. On the growth that we expect for next year, which is on page

next year.

Okay.

And we are giving you

a overall group projection where we are saying that revenue will scale between 30 to 40 percent and EBITDA will scale between 20 to 30 percent for FY28. So at EBITDA level this year, we are guiding between 525 crores to 575 crores this year. Followed by a growth of about 20 to 30% in FY28 to 650 to 700 crores. So that is the kind of scale that we are talking about for the group level, which is available on page number 19 of our presentation. Yeah, I got it. What has been your historical inquiry to order conversion ratio?

Sorry to interrupt you, Mr. Jani, but can you please rejoin the queue?

Okay, thanks.

Thank you. The next question is from the line of Shubhankar Gupta from Iquitri Capital. Please proceed.

Hey, hi. Congratulations on the set of number and the presentation is also very detailed and thanks for that. So, I have three questions total. First question is on the wind ENC EBITDA margins. So, I see that they've gone up from 11% to 18% on a biowire basis. Just want to understand how this rise has come up and how, you know, how much, at what a bidder margin do you see this business going? Thank you, Carl.

Ready? Rishi sir? So this, yeah, am I audible?

Yes.

Hello?

Yes, yes. So this 18% is before manual located expenses in the CPC business. If you add on or distribute this located expenses on the different segments, then it will be between 10 to 12%.

Okay, thank you. So that is the sustainable number, right?

So going forward, we expect the EPC business, ENC business, it's not an EPC business, we expect the ENC business to settle anywhere around 12 to 15%.

Got it. That's helpful. Second question is on the line of the capex, right? So you've done, I think, 92 crores in Q1. Uh, I guess that is for around seven, eight machines. Uh, just want to understand in terms of lifting capacity, what is the total value add, which we've done in Q1?

No, we don't share the lifting capacity. Uh, what will happen? We don't share the incremental lifting capacity because there's no value to an investor by that, with that information. Okay. And it is more of a trade seeker.

Fair. I think you did share in one of the earlier PQTs, but it's fine if you're not continuing with that. Totally fair. Just want to understand from a business understanding perspective, the tenure per project. So on average, a crane is deployed at a project for roughly how many days or weeks?

Yeah, so there is no straight answer to this because, you know,

it varies across industries, it varies across projects, and also locations. So typically, you know, you may find a shutdown job for 60 days, just as an example, or you may find a wind installation job for 8 months. So it depends really on the industry, on the segment, location, etc.

But to add to that, what you need to look at is our capacity utilization for the quarter. So last year at an annualized basis, our utilization was approximately 80%. So for 80% of the duration of the year, our cranes were engaged. Now, in an asset rental business, where you have mobilization, demobilization, where you need to move the asset from one job site to the next job site, where there is repairs and maintenance, preventive and breakdown, you know, 80% utilization is an effective utilization of almost 90%. In this quarter for Q1, the utilization has been 86%.

So, if you add back the factor of mobilization,

demobilization, repairs and maintenance, both preventive and breakdown, you know, this is a near to 100% utilization.

So, just from an understanding perspective, Rishi, are you saying that like the mobilization and demobilization part is not a part of the capacity utility? So, when we say it's 80% utilization.

It's not a part of the capacity utilization. Yes, utilization is calculated as my rental revenue divided by my

Number of days is utilization, not yield. Okay? Chubankar?

Yes, I think. I think that's your second question. I would request you to come back into the queue. Sure, sure. Thank you.

Thank you. The next question is from the line of Jai Bharat Trivedi from Incret AMC. Please proceed.

Hello, am I audible?

Yes. Yeah, thanks for the opportunity, and I really appreciate the effort taken behind the presentation. This is quite detailed. Just one question, the incremental debt that we are going to pay, will it be in rupee terms, or are we exploring foreign debt, and what could be the cost of debt, any ballpark range? That's the only question. Thanks.

Thank you, Mr. Trivedi. The debts are being taken in India, in Ayanar, and for overseas companies, these are taken in dollar term. So, there are different currency and different rate of borrowing for that. India is generally ranging 808% plus minus 0.25. This is the difference, and externally, it is software spread, which is ranging between 5.5 to 6%.

Any blended cost of it are low.

The weighted average cost of borrowing is a balance sheet item. And generally, we don't disclose these numbers during a quarterly presentation. When we publish the half-yearly balance sheet, at that time, we can disclose the weighted average cost of capital. Okay, Mr. Siviri?

Fair enough. Thank you so much. Thanks a lot.

Thank you. The next question is from the line of Sriram from I Thought PMS. Please proceed.

Thanks for the opportunity. So, to which sector we primarily started to serve in KSA, and from which sector are we getting more inquiries?

Yeah. So, Sriram, thanks for that question. I would guide you to my presentation on KSA. There is a breakdown of the inquiry pipeline, which is available on page number 23. If you look at the 0 to 12 months, we have roughly 4 to 7 million dollars of inquiries coming from infrastructure. Two to three on housing and entertainment. Three to four million dollars on industry. Industry and housing is another four to seven million. And industries and energy is about another million dollars. This is a breakup of our inquiry pipeline, which is executable in the next 12 months of approximately 22 million dollars. We have also given you a look-ahead inquiry pipeline

for the second year. Got it, sir. And my second question is, this is

all available on page number 23 of the presentation.

Yes, sir. Got it, sir. Sir, and my second question is on the wind ENC. Does our scope of work change contract to contract?

Absolutely, Sriram. It depends on what scope the customer wants to provide to us. The scope is split across five different service offerings, which are mechanical. It includes the crane. Manpower and intercutting services along with the commissioning of the turbine, electrical scope, civil scope, ROW, land and ROW and permits as well as surface logistics. So depending on the nature of the contract, the client, the location, the scope of work varies.

Understood, sir. So, I will end with a final discussion.

Going forward, will we be adding more depots in JCP countries or within Saudi?

Yes, we will be adding a depots. It is in our strategic plan. As of right now, we cannot disclose the location and the timelines, but there is a... Uh, depot addition strategy, which spans not only KSA, but also the other countries in which we operate, which as of today are KSA and Kata.

Got it, sir. Thank you, sir.

Thank you. Thank you. A reminder to all participants, anyone who wishes to ask a question, may press star and one on their touchtone telephone. The next question is on the line of Kushal Goenka from Mangal Kesha Financials. Please proceed.

Yeah, hi. Congratulations on becoming the third largest payment and equipment company in the world. My question is, sir, what measurable or quantitative insights do you benchmark to determine this? And if you can give any ballpark numbers, what can be the difference between the first and the third instance of numbers?

So the ranking is established by International Cranes, which is an industry-recognized and gold standard magazine. The largest current rental company in the world is Mammoth, which is owned by a private equity family. The second is Sarin's. And the ranking is determined by cumulative lifting capacity. So this is available online and the differences between each company's cumulative lifting capacity is available in this ranking.

Thank you, sir. And my second question is, family movement always uses words like precision, no margin of error, etc. on the LinkedIn post, which really shows the true strength and capability of the company. My question is, till date, has there been any accidents due to a technical issue at our end? And if not, how do we ensure such high quality and standards? And as we are addressing more geography, so how do we maintain that at the highest level?

Kushal, yes, there have been accidents. However, our safety record, you know, is almost impeccable. Having said that, you know, we will not boast that there will be never an accident. But we take a lot of efforts in terms of preventing of safety. There are checklists, there are SOPs in place, there are safety councils in place. We take safety as a very, very important value differentiator when we work with a client.

So, the question on how do you ensure that safety remains a gold standard across different geographies that we operate. You see, my father started this business in 1989, and he was the godfather of this industry. You know, the lifting industry did not exist before he started. Mr. Chandrakhan Sangvi started Sangvi Movers Limited. So, when we imported our first crane, there wasn't an operator in the country who could operate this German technology. No one had seen such a crane. So, we have developed over the last 36 years very sound and fundamental operating capabilities, technically, operationally, and safety. And this has been the cornerstone of what has led us to scale up. We have truly been nation developers. If it wasn't for Sangvi Movers Limited, then infrastructure of the country would be set back by two years. Now, as we expand globally, what we do is we do what is called as a transfer of these holding capabilities to new markets. So, when we opened KSA, we transferred a lot of our seasoned operators on the cranes, safety officers, operation managers, fleet managers. We transferred such people from India to KSA. And under the local leadership in KSA, which is Dr. Alman Asit, who is also a veteran of this industry, he was a country manager for a lot of grain rental companies, the local know-how and our institutional knowledge work together to ensure that the brand reputation of Sangvi Movers is not Impacted, but it is in fact enhanced. So, as an example, we are one of the fastest crane rental companies that have been approved to work in Aramco. And we have already executed a shutdown job in Aramco. And Aramco is the gold lifting standard for the crane rental industry worldwide. So, this is an example where we have been able to prove and strengthen our brand. Okay. So, thanks, Kushal. Huda, that is the last question.

Yeah, thank you. Thank you.

So, I will just close with the comments. So, first off, Huda, thank you for facilitating and moderating this conversation. I want to thank all the investors who have taken time out to join the conference call. We really appreciate your time. We have spent a significant amount of time and effort to improve our disclosures, which we have made a public declaration of doing. Going forward, we will continue to report on our performance based in this same format, including on the guidance and the quarterly KPI dashboard. This, we hope, will create long-term investor confidence in the narrative that the management is communicating to all its stakeholders. Further, I would be remiss if not to acknowledge the hard efforts of all the employees of the company, especially the frontline workers who work day in and day out to build this nation's infrastructure. Thank you, everyone, and have a good day.

Thank you. On behalf of Sangvi Movers Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line. Thank you.