Earnings Call Transcript - XNSE:SANGHVIMOV 2026-11-03

Sam, Head of Investor Relations

Good afternoon and a warm welcome, everyone, to Q2 and H1F527 Earnings Call of Sunvi Movers Limited. 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 considered 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 transcript along with the audio of the same will be made available on the website of the company as well as on the exchanges. Please also note that the audio of the conference call is the copyright material of Sangli Movers Ltd. and cannot be copied, re-broadcasted, or attributed in the press or media without specific and written consent of the company. From the management, we have with us Mr. Rishi Sangli, Managing Director. Mr. Gaurang Desai, Chief Executive Officer, and Mr. Pradeep Mehta, Chief Financial Officer. I would now request Mr. Pradeep Mehta, Chief Financial Officer of Sangri Movers Limited, to provide you with the updates for the quarter and half year ended 30th September, 2026. Thank you, and over to you, sir.

Speaker 3

Thank you, Sam, and good afternoon, everyone. I will take you through the financial and operating performance for the second quarter and first half of FI27, followed by balance sheet, cash flow, and capital exponential positions. On a consistent basis, revenue from operations for Q2 FI27 was 277 code, compared with 210 code in Q2 FI26, which representing year-on-year growth of 32%. Total income stood at 296% up by 26% year-on-year, EBITDA was 106% and an increase of 20% with EBITDA margin of 36%. Profit after tax was 20% compared with 36% in the corresponding quarter, while cash profit stood at approximately 78%. For X1F527, the videos come operation increased by 56% year on year. to 657 crores, while total income grew by 38% to 689 crores, and EBITDA increased by 25% to 245 crores, with a blended margin of 36. Profit after tax rose by 22% to 106 crores, and cash profits increased by 181 crores. This remote remote state has been grown across the group. Supported by the scale-up of our renewable energy, engineering, and transportation business, and continued contribution from the crane rental booths. Frequently, Q2 revenue was lower than Q1. Similarly, reflecting the normal setting of renewable project exhibition, the monsoon-led modernization in the domestic activity, and the timing of crane deployment in the mainland. We looked at it largely as an execution and timing effect rather than a weakening of underlying demand environment. During S1 FY27, the group reunion meets comprised approximately 62% from Grand Renta, 36% from Engineering and Cursations, and 2% from Project EPC. For the full year, now we expect broadly 60 to 40 minutes between train renter and renewable ENC, compared with the earlier expectation of approximately two-thirds and one-third. The stronger contribution from asset-like renewal with this is support of our absolute EBITDA and is attractive to retail on capital employed, that is ROC, though although even it moderates the length of reported margin percentage. In India, most of our current rental business, H1 total income was 46,000, and fleet utilization today's 38%, with yield at 2.24%, and EBITDA margin is 46%. The margin movement compared with FY26 reflects a higher share of ancillary and externally hired equipment, train and trailer hire service, freight and carry, insurance, and one-time inventory, and the performance of project EPC segment. Several of these factors are either linked to revenue mix or are non-recurring. Importantly, the underlying current rental franchise remain healthy and supported by a strong order book and inquiry type unit. The GCC Crave rental business reported H1 total income of 39 goals, utilization of 86% and yield at 3.80% and a positive EBITDA margin of 24. This clearly makes a market improvement from the gestation stage performance in FY26. The revenue experience continues to validate the original investment thesis to higher utilization and yields above our annual expectations. Although its near-term scale-up has been affected by shipping constraints, load congestion, and delayed delivery of the claims. So, this renewal E&T business generated as well total income of 365 crores, and EBITDA margin of approximately 14%. This business remains asset light and highly capital efficient with a ROC of 63% on CPM basis, that is 12 month basis. And we continue to expect sustainable margin to settle within our indicated rates as the business scales. While exhibition timing and POCM accounting may create some quarter-to-quarter variations. On Outerbook, as of 23 October 2026, Group was issued at 1,582 codes, which is representing growth of 26% from 1,253 codes as reported earlier on 24 July 2026. So this comprises 63 codes in India and Botswana. i.e. Kran rental business and 45 code in GCP from Kran rental and 8 to 44 code in renewable E&C business. The total inventory of past time stood around 6,700 codes, which providing a healthy funnel across the business segments, and our working level performance improved minimally during this first half of the year. Our group GSO stood at 81 days, with India and Botswana, Ukraine countries around 89 days. Renewal TNT is below 60 days, and DCC is 155 days. DCC days are reduced from 201 days in Q1 to 165 days in Q2, which is reflecting our process-collection effort, and we will continue to prioritize billing discipline, certification cycle, and collection. On the left, All galaxies remain strong and support the next stage of growth, considering the effects increase to 1398 cores as in Qatiyah Sattanga, and gross rates to rate in 0.5 cores. If you consider a traceable position of 400 cores, 414 cores, then result in into net rate of 391 cores, so your gross rate to is pretty recently 0.5 times. It is comparably within the F527 ceiling top 0.720. And our weighted average cost of borrowing is 8.28 percent. All other ratios are in comfortable range, and cash flow transactions are healthy. So, this first half we calculate cash flow operation was around 251 forwarding X1, X527, which is equivalent to 83 percent of the period of X526. So this is what we achieved within 6 months, and on capital X-12, F-527 CAPEX-2 is revised to 533 codes, and this includes carry-forward CAPEX-2 of F-526 and the revised plan of F-527. Out of this, 182 codes were already capitalized during H-1-F-527, which include 19 growth in Q-2, and now leaving 401 codes pending to be executed in the second half of F-527. So, approximately 96% of our plant food is related to revenue-generating assets, and in the Middle East, due to logistic disruption, and vessel availability percent, and post-consumption from a package, which has affected us adding up grain delivery, and that's what impacted our device's effects. But this total of K-state effect is in V phase for F by 28. This is a discipline. In response to the timing condition, not a change in our long-term view of the market. Requirement is being aligned with the contracted demand and prioritized towards the highest econ assets. In India, Q2 declassion was also ordered by the monsoon. Here, and with the deployment expected to improve and project activity normalized. With that, I will hand over to our key flexibility officer, Mr. Goran, this time. Good afternoon, everybody, and thank you for joining us today. So let me begin with the environment we are operating in. If you look at the macroeconomic environment, India continues to be the fastest-growing major economy, and GDP grew almost 7.8% in April to June quarter, very ahead of expectations. And RBI has since revised the FI 27 growth forecast to 7.1 percent. You know, most importantly for us, this growth is investment led. I mean, fixed capital formation grew almost by 12 percent in this quarter. And it's a twice the pace a year ago. And investments now accounts for around 34 percent of the GDP. We are mindful of the risk. The West-Asia conflict has pushed the prices of crude and inflation, and, you know, RBI raised the record rate by 25 basis points in October. But the underlying growth momentum remains strong, and we believe the investment cycle has many years to run. So, you know, we covered on the industry sectors we operated. So, let me start by A, infrastructure. So, project approvals have continued at least this quarter. In September, the cabinet cleared eight railway projects worth 20,000 crores, and in October, it approved 1.8 lakh crore green energy corridor for power transmission. On the ground, heavy steel bridges launches on the Mumbai, and there was a high-speed rail corridor. Shows exactly the kind of complex lifting this pipeline creates. Cement, the capacity is set to grow from 686 to 850 million tons by F530, and around 70 to 75 million tons is commissioning this year alone, and demand is expected to grow 7 to 8 percent, driving plant reduction and waste heat recovery work for us. Steve. Capacity is expected to rise from about 220 to 300 million tons per F530. The safeguard UTS cuts imports by almost one-third, supporting domestic wheel expansion, which again works in favor of heavy lifting. Refining. In October, BPCA set up a dedicated project company for its proposed greenfield refinery and petrochemical complex in Bangladesh, with an investment outlay of almost 1 lakh crore. Thermal, around 36 or almost 39 gigawatts is under construction, and further 23 gigawatts has been awarded as the government targets towards almost 300 gigawatts of thermal capacity by F530. And, you know, this gives us a steady pipeline of boiler and turbine to lift. Nuclear power. The Shanti Act has opened up the sector to private players, and groups such as Tata, Reliance, Adani has responded to the first small modular reactor tandem. So, capacity is targeted to grow from 8.8 gigawatt to 22.5 gigawatt per F530. VIN, which is, you know, our, one of the dominant segmented, added a record 6 gigawatt in FY26, up Y46%, with 29 gigawatt under construction, and a target of 100 gigawatt by 2030. So while we remain watchful of, you know, efficiency, cost escalation, our presence across these sectors reduces our dependence on any single cycle. Let me talk about performance. I will touch upon briefly, and I will be quick here. So, we deliver a strong first-off revenue from operations grew 36%, to 656 crores, EBITDA grew by

Speaker 2

25%, and PET grew by 22%. And in Q2, revenue grew by

Speaker 3

32%, with an EBITDA margin of 20%. As Pradeep mentioned, our order booked in just 13 weeks grew by 26%, and we are close to almost 1,600 crores of order booking, with an inquiry pipeline of 6,700 crores, which gives us a strong visibility for the rest of the year. So, in terms of utilization, it was, what, 78% for the first half, with a yield of 2.24% in line with FY26 levels, and within... A historical range of 73 to 84%. You know, as Pradeep touched upon the seasonality aspect, so Q2 utilization in India was 71 compared to beta 6 in Q1, reflecting the normal monsoon slowdown. However, it was ahead of the 70% to be reported last year, and a yield increment from 2.22. So, we now enter the second half, our seasonally strongest period, when utilization in India typically picks up sharply as project activity resumes after monsoon. So, our revenue mix is changing, and I will not dwell too much into it, because Pranita has already mentioned. You know, so looking ahead, we are confident that we have a strong wind runway support of our core business, growing asset-like stream, and, you know, two growth engines. I mean, Saudi CapEx is, you know, deferred. So, let me give a quick update on the Middle East as well. So, shipping and port disruption in West Asia have delayed Ukraine deployment in Saudi Arabia, and we have moved part of the Kfx to F528. So, this is a timing issue, not a demand issue. The grains we have deployed are highly utilized and earning above target yields, and the business is EBITDA positive. We are phasing investment. The phasing investment in line with orders and prioritizing the high return assets. I will not talk about CapEx as Pramit has covered. You know, Pramit also mentioned that we have done good work in terms of our DSO, which has come down to 81 days from 116 in Q1. Our customer satisfaction score has risen from 7.5 to 9.18 this year, which is a milestone of the company. If I talk about safety, it remains non-negotiable for us. I mean, we have received many safety awards, including the likes of GE's contractor Gold Standard Accumation, and we hold safety to our hearts. We continue to bring a stronger organization to support growth. So in terms of digital journey, we are now live with CRM and HRMS. You know, we'll be focusing on getting talent. Our offer to join ratio improved to 86%. Retention fell to 6.5% in the first half. You know, and in terms of our culture, we are working towards great place to work. So, based on our first half-year performance and order book, we reaffirmed our FY27 guidance of total income of 1,400 to 1,500 crores and EBITDA of 525 to 575. With healthy demand across infrastructure industry, energy, a growing renewable platform, disciplined capital allocation, we are confident in delivering on Elevate 2030. So, I would like to thank all of you for your time. Thank you.

Sam, Head of Investor Relations

We will now begin the question and answer session. Participants who wish to ask a question may press star then 1 on the touchtone form. We will wait for a while for the questions to assemble. Participants who wish to ask a question may press star, then 1 on the touchstone phone. The first question comes from the line of Sunil Jain from Nizamal Bank Securities. Please go ahead.

Speaker 5

Yeah, thanks for this opportunity, sir, and congratulations and good order book growth. Sir, my question relates to first a data question regarding order book only. Since your order book is now 1,582 crores, Which is to be executed in the current year or there could be something spill over to next year as well in this?

Speaker 3

So, thanks, Will. So, this order is executable in this financial year. However, you know, in ENC business, there is always a 10% chance that, you know, things may be referred due to various issues of ROW and those kind of issues. But otherwise, this is all executable in this year.

Speaker 5

Yeah, so, since your guidance of revenue is 1400 to 1500, and you may get some more orders in the coming period, which can be executed in the current year, so there is a possibility of you exceeding your guidance as well?

Speaker 3

So, as a management who believes in abundant and prudent, cautious guidance, We believe that we still hear from what we have guided from between 1400 to 1500. I want to restate the fact that in the engineering and construction business, There is uncertainty of revenue and delay in revenue recognition because some of the projects' delivery is not within the company's control in terms of grid connectivity, repair update, site availability, WTC supply from the OEMs, and also delay in monsoons that are now prolonging into the third quarter. There may be some executional delays due to our internal challenges in terms of delivering the project schedule for our customers as well. So, because of this, there is between 8 to 10 percent. Overflow of the existing order book, which we are now communicating as 1582 crores for this financial year, that may spill over into the next year. So if you do the math, between 140 to 160 crores can spill over, thereby putting us back within the range of 400 to 1500.

Speaker 5

Accurate. It's better to be conservative, sir. So, my second question relates to Middle East, as we are deferring some capex to the next year. And the second thing is, like, with the limited capex, which we'll be doing in this year, how much is the possibility of margin improving? We are operating at break-even level. Is there any scope, how much scope is there for improvement of margin from here for Middle East?

Speaker 3

So, of the total capex plan that has been designed, about 80 to 90 crores is being postponed to next financial year. Now, the business in Saudi Arabia is still a bit of positive. If you look at the quarter performance, we have actually generated a fast profit in Saudi Arabia. The scale-up will remain a challenge because of the inability to deploy further capex in the country, but there is demand. We have sufficient inquiry flow, and As soon as this capex can come up, the scale-up will happen within the Saudi, and there is an expectation for the EBITDA margin to improve in next year's full year grind.

Speaker 5

So, if suppose this problem gets resolved sooner, There is a possibility of you bringing that capex in the current year itself or it will be deferred in the next year?

Speaker 3

It's not only about the conflict in West Asia. The conflicts in West Asia has a prolonged disruption in the logistics and shipping chain, which will take a long while to normalize. So we are also waiting for the shipping cost to normalize before we mobilize some of our larger cranes that we had planned.

Speaker 5

Great, sir. I got few more questions, but I will come back in the queue.

Sam, Head of Investor Relations

Thank you. Before we move on to the next question, a reminder to participants to press star and one on the touchtone phone to ask a question. The next question comes from the line of Akshay Gawahar from Banyan Tree Associates. Please go ahead.

Akshay Gawahar, Analyst — Banyan Tree Associates

Hello, Anna, what is it?

Sam, Head of Investor Relations

Yes, you are audible. Please go ahead.

Akshay Gawahar, Analyst — Banyan Tree Associates

Thank you for the opportunity and congratulations on the strong growth in the audiobook. My first question was on the margin degree for the Cranes division. So as I understand that the margin bridge that I also present in the presentation includes the impact of other income as well. So if I compare the F526 performance, it had a lower contribution of other income. So, my point is that the 53% to 46% degrowth is partially offset by a 1.5% to 2% increase in other income. So, are there any other key drivers on the cost side which have led to a decrease in margin because there's an other operating cost of 2%, which is a negative 2%, but that could be also incorporating the margin increase of 2% attributed to other income. So, what is the other driver of the reduction and margin?

Speaker 3

So, hold on. First of all, let me address what you are answering. First of all, other income has no impact on the EBITDA margin that we have described. The EBITDA margin is derived prior to the impact of other income on the P&L. Because it's not inclusive. Other income. Thank you. You know, EBITDA margin is inclusive of other income. However, there is a, in segment reporting what you are describing on page number 31. So, there is a decline, there seems to decline in the overall margin of the crane business. That's because on account of the accounting policy. So, when we report the segment reporting, there is one line item of crane accident which we write off in this quarter. So, it has come as an operating expenses. However, the income lies in the line of other income. So, when you see the segment reporting, you will find there is a mismatch. However, if you see the overall margin, it stands like a 46%.

Akshay Gawahar, Analyst — Banyan Tree Associates

You know, on page 31, if you're referring to, I'm referring to the bridge on page 33, on PDF, on the page 33. So there you have another operating cost margin movement of negative 2%. I mean, there's no exception item mentioned in the results anywhere, so. Fine of loss, sir.

Speaker 3

Yeah, so this minus 2%, the breakup is one line item is the incentive what we gave to the leadership team and the frontline worker, which we mentioned in the Q1 presentation, because this bridge is for the H1 to H1, that is one of the reasons.

Akshay Gawahar, Analyst — Banyan Tree Associates

That's already presented separately as well, but that's already presented separately in the bridge as well.

Speaker 3

So, other operating costs, which you are right, that we have already shown minus 1% as one-time incentive, but the other operating costs is the change in the PF law, which is mandated, statutory waiver to do, and, you know, insurance costs, which will even out over a period of time.

Akshay Gawahar, Analyst — Banyan Tree Associates

Basically, going forward, the what would be an operating margin that one should consider, like 46% then broadly seems to be in line, that the go forward margin would be closer to 46% then, right? Because the PSPOS will... We have a new mix.

Speaker 3

So, Akshay, partially you are right. To certain extent, contact labor charges will increase the, will create a pressure on the margin. However, so, there is a compensating effect in Q3 and Q4 also. When we are in the full scale, this overall margin will get, average it out. Because there will be a higher yield and utilization of what we expect in the Q3 and Q4.

Akshay Gawahar, Analyst — Banyan Tree Associates

And what is the driver for the increase in other income right now? You mentioned something about the insurance cost income, so I didn't follow that.

Speaker 3

So, one of our assets has been impaired. So, we have received an insurance claim on that asset.

Akshay Gawahar, Analyst — Banyan Tree Associates

Okay. And the expenses set in other expenses of the income, the insurance claims, it's in the other income component. Is that understanding, right?

Speaker 3

That's right.

Akshay Gawahar, Analyst — Banyan Tree Associates

Okay.

Speaker 3

Yes, you are right.

Akshay Gawahar, Analyst — Banyan Tree Associates

All right. I don't have any other questions. I'll join back with you in case there's something else. Thank you.

Sam, Head of Investor Relations

Thank you. A reminder to participants to press star and 1 on the touchstone phone to ask a question. The next question comes from the line of Sriram Palaniyappan from iThought PMS. Please go ahead.

Akshay Gawahar, Analyst — Banyan Tree Associates

Sir, can you provide a current range of age distribution of the grains that we have in India?

Speaker 3

So, we don't share this information because it is a price sensitive, competitive information. So, we are not sharing this information on the age breakup. But as you can see that in the last five years, we have deployed more than 2,000 crores of CAPEX. So, we will be deploying between 2020 to 2028, we would have deployed more than 2,000 crores of CAPEX, which represents more than 30 to 40% of our gross flow. For this time, we will proceed to determine the age of the cranes.

Sam, Head of Investor Relations

We seem to have lost the line for the questioner. We will move on to the next question. Before we move on to the next question, a reminder to participants to press star and then one on their touchstone phone to ask a question. Participants who wish to ask a question may press star and then one on their touchstone phone to ask a question. The next question comes from the line of Ajay Raj Singh Jhalla from An Individual Investor. Please go ahead.

Speaker 3

Hi, thank you. My first question is in the line of what would be our virtual capital investment for the year, and how do we envision that to be going ahead, if you would give some numbers for that. And my second question is, I understand that we would not give out the break up of the technical information, but please help us with what would the replacement cost for our current assets be that it does. So, our working capital draw across all the segments and various businesses since 1st April 2026 till date is zero. We have not utilized any of our working capital limits across the group till date. We are supporting the businesses through our cash flows, and our... This answers your first question. The second question is on replacement cost. The replacement cost is a theoretical exercise which we have not done internally. Because there are a lot of factors that go into calculating a replacement cost, such as technology, such as currency depreciation, such as availability of goods equipment within the market, as well as other taxation and accounting challenges. The current life of a crane is more than 40 years. So it is very difficult to figure out what would be the replacement value for a crane on the basis of its current age. Okay?

Speaker 2

Thank you.

Speaker 5

So, and addition to the second question, like, I just wanted to have a basic understanding of how we come... Is it based on the cost of acquisition of the crane?

Speaker 3

Yes. So, the yield, monthly rental yield, is calculated as your monthly hiring rental divided by your historical cost of acquisition. So, it is on your gross bill.

Speaker 5

All right. Thank you.

Sam, Head of Investor Relations

Thank you. The next question is a follow-up question for Mr. Sriram Palyanappan from iThought BMS. Please go ahead.

Speaker 3

Sir, in spite of 86% of utilization in the Middle East, we have 24% EBITDA margin.

Speaker 5

So, you mentioned that we are expected to increase, but how would we, sir, because… Realization is already in the highest rate.

Speaker 3

Please understand that the EBITDA margin is a reflection of our startup costs. For the first six to eight months, we had incurred costs where we are not earning a revenue, and our commercial operations then began sequentially after that. And therefore, the 23% EBITDA margin is a reflection of our startup costs that we have incurred to establish the business. Over the course of time, this will normalize, where the industry average margin is between 40 to 45 percent, and we are confident that through our 37 years of operating experience, and our capability to operate at lower cost is, we will pull up that EBITDA margin by one or two percentage points when we are fully deployed at scale.

Sam, Head of Investor Relations

Understood, sir. Thank you. Thank you. The next question comes from the line of Ria Mehta from Equitas Investments. Please go ahead.

Ria Mehta, Analyst — Equitas Investments

Because of the ongoing geopolitical scenario, what is your view on...

Speaker 3

Yeah, so our utilization is a proxy on execution. The higher the utilization, the more the on-ground execution is. So, in the first quarter, we are at 86. In the first half, we are at 78, which reflects a slowdown due to monsoon. But we do not see a slowdown on the ground due to the geopolitical situation in India domestically. In the GCC, we see that projects are delayed primarily due to logistics, challenges, and availability of manpower and material aside for execution. So, there we are seeing a delay of between one to two quarters, but there also our utilization remains strong at 86%. So when we achieve full scale, we may see certain impacts. Of the situation in terms of logistical delays, but till date, and I stand by the statement that our utilization is a proxy for on-ground execution.

Ria Mehta, Analyst — Equitas Investments

Thank you.

Speaker 3

Very much so. I would say because of H1, not given H1.

Sam, Head of Investor Relations

Thank you. A request to participants to limit their questions to two per participant. The next question is from the line of Trishank Jani from Moneybee Investment Advisors. Please go ahead.

Trishank Jani, Analyst — Moneybee Investment Advisors

Yeah, hi, thanks for the opportunity. My question is regarding the wind ENC. So, are contracts are finally fixed by the COCHPLUS, or do we have the supply resolution clause on this? To pass on increase in fuel, diesel, and transportation fuels.

Speaker 3

So, in the ENC business, we do not pass on any cost of escalations to our customers. It's a fixed price contract. Okay. So, and the business mix currently is 31% in April 26, and we are targeting around 40% in April 27 for ENC. So, how are we seeing over the next two years? Devenue mix or segmental mix is given on page number 18 for next two years.

Sam, Head of Investor Relations

Okay, sir. Thank you.

Speaker 3

Of our investor presentation.

Sam, Head of Investor Relations

Thank you, Mr. Jani. The next question is from the line of Sunil Shah from MM Catalyst. Please go ahead.

Speaker 2

Yes, sir. Thanks for the opportunity. Sir, as I go through the presentation, slide number 27. It gives me a breakup of the order book, you know, where our order book is 1,582 crores, out of which the middle is, the Saudi Arabia and others is 45 crores, which is not even 3%. Similarly, on the gross block front, you know, our total gross block is closer to 3,400 crores. But the gross block that we have deployed there in Middle East is less than 4% at about 148 crores. So clearly Middle East's situation is not under anybody's control, which is a fact. But our exposure there is not even 3% of our total business, as I understand in terms of the order book or the gross block that we have deployed. Sir, if the situation gets prolonged, which nobody can guess right now, sir, would we not, as a strategy, look at India's opportunity for more growth? Would that be one of the ways to look about the things in case the situation prolongs there? Because it's just 3-4% of the business that we are doing. So, could you make us understand some thought process on the strategy that you have in such a situation where the logistics cost is so prohibitive that meaningful business could be at risk over there? Could you share something on that?

Speaker 3

Before I answer your question, let me first talk about the initial investment thesis, why we entered the Saudi Arabia market. You see, the Saudi Arabia market is a trillion dollar construction opportunity, which we believe is driven fundamentally by three areas. Today, one primarily depends. Two, oil. And three, the global commitments that the Kingdom of Saudi Arabia has made with respect to the FIFA World Cup and the World Expo. These global commitments, so leave aside oil and gas and defence, for oil and gas and these global commitments, there is a tremendous amount of construction activity that is taking place in the Middle East, as a consequence of which there is a high demand for grains. Even in H1, the current situation began in February 2026. In H1, we have been able to maintain an 86% utilization at a 3.8% yield and a DSO of 165, which has come down from 2.0. So the market in Saudi Arabia is one of high demand, high yield, and they are able to collect our receivables. Uh, which in that region is pretty standard between 150 to 170 days. Now, the oil and gas space, as well as the global commitments, which has resulted in a massive infrastructure build-out, continues to give us a very large visibility going forward on the demand for cranes. So, our hypothesis, even today, holds true. Given the audited performance and the numbers that we have displayed. So this is one part of your question. The second part that you have asked is what is the strategy and what do you do with the worst problem? First of all, we have more than 216 million Saudi Rial worth of inquiry pipeline which is live stream. And currently we are not able to service that inquiry pipeline because we are not able to get enough grain from the ground. Every single grain that we have imported into Saudi Arabia this financial year has moved, or Qatar, has moved from port to site, signaling an extremely strong demand for grains. Now, if the situation happens that for whatever reason in the near future, or in the even the very long distant future, we need to shut shop and pull out grains. Our equipments are not like a typical plant and machinery, such as a chemical processing plant or a manufacturing plant. These are all mobile assets. We can relocate them easily. In fact, in the peak of the war, we have moved a 600-ton crane from India to Saudi Arabia to meet the demand that is available in the country. So, the capability to move assets is very much in our operating matrix. And if the call requires, we will move. But as a promoter and as from the management side, we see a tremendous business opportunity, real opportunity on the ground. And not only do we see an opportunity, we are capitalizing on it. And as you mentioned, the exposure is less than five.

Speaker 2

Right. Fine, sir. Fair enough. All the best on this issue. Sir, just one point. You know, our gross block today stands at 148 crores in terms of the exposure to that particular region. Number-wise, if you can understand how much gross block could be there by the end of this financial year and by the end of next financial year for us to understand how much it could pan out. Of course, it's not predictable. We are doing this.

Speaker 3

Continue. The data is available on page 29.

Speaker 2

All right, sure. Okay, I'll have a look at it. Okay, thank you very much, sir, and all the bells. Thank you.

Sam, Head of Investor Relations

Thank you, Mr. Shah. Before we move on to the next question, I request to participants to limit their questions to two per participant. The next question is a follow-up question from Mr. Sunil Jain from Nirmal Bank Securities. Please go ahead.

Speaker 5

Yeah, thanks for this opportunity again. Sir, my question relates to more of an ENCE business. Wherein, though the installation as compared to last year is similar in the industry in India, but your revenue has grown over 40%. So, how are you able to gain the market share in the market? What extra or what different are you doing? Because of that, you are gaining the market share.

Speaker 3

Sunil, as you know that we have erected more than 20 gigawatts of wind energy in this country, of the 55 gigawatts that might exist. So, Sun Removal Limited is a parent company and has a very long legacy and a long history in this particular sector. Now, as far as sand green future renewables is concerned, and the Brohim Order book, One, it is a strong signal from our customers because of our project delivery traffic. The second is that we are now providing full scope services to the independent power producers where we are doing land permits approval. Mechanical scope, which includes the crane, intercutting and installation, electrical scope, which includes the USS, SCADA, 33 kilowatt line, engineering and design, and shrivel works, which includes the foundation of the WTG, the crane pad, pathways, etc. So, the growth in that, while in your words, what you're saying is, The installation has been on par, but your revenue is doubling. It also reflects our ability to secure orders with our customers on the basis of our delivery track record, on the basis of our long history in this sector, delivering more than 20 gigawatts of direction, and on the basis of taking more of these large-scale composite jobs.

Speaker 5

It's a related question. Like a lot of two, three new players, large group has entered into this business of manufacturing turbine and all, like Adani and JSW. So are they, we are able to get job from them also?

Speaker 3

If you look at our presentation on phase number 23, you know, or not 23, 25, there was, 24, there was recently, you know, the industry conference in Chennai, and on point number 2, we have mentioned that there were framework discussions and MOUs with OEMs that established us as an exclusive EMC partner.

Sam, Head of Investor Relations

Thank you, Mr. Jain. The next question is from the line of Akshay Jawahar from Banyan Tree Associates. Please go ahead.

Akshay Gawahar, Analyst — Banyan Tree Associates

I just had a question on the borrowings bit. So I think in the previous Q1s phone call, we basically said that part of the margin decrease was also because of the restatement of the forex loans in the form of the depreciation and INR and USD. From a going forward perspective, like even the additional borrowings that we made in the current quarter, will our loans always be in USD or is it also like to the extent like how much of our mix is in INR denominated loans and is it even possible to have INR denominated loans?

Speaker 3

So, actually, it was a reinstatement on mark-to-market basis for the inter-corporate deposit, what we are given to the KSA. We need to, as per accounting management, we need to reinstate the financials based on the prevailing rate as on that date. So, yes, in Q1, it was a negative impact on the PNL. However, in Q2, because of the exchange rate movement, it neutralized the impact. So, it's just an MTM counting entry.

Akshay Gawahar, Analyst — Banyan Tree Associates

Okay, so this is on the inter-profit deposit and not on, but the borrowing that we raised from bank, that's in USD nominated or is that INR the nominated?

Speaker 3

For India, we are borrowing in INR, and for KSA, we have local currency or USD borrowing, and these are banked currency.

Akshay Gawahar, Analyst — Banyan Tree Associates

All right. Okay, perfect. Thank you.

Sam, Head of Investor Relations

Thank you, Mr. Jawahar. Next question from the line of Rohan Mehta from StratEasy. Please go ahead.

Speaker 5

Yeah, I have just one question. The project's EPC segment that has seen some sort of mishap. Can you just guide how it will turn out going forward?

Speaker 3

So, the project you see is a business protocol that is not reported separately, but falls under the standalone results. We are in the process of winding up this segment, and we will be able to complete the revenue recognition in Q2Q3 of this year. Thereby, management's expectation is to reverse this negative avatar that is being displayed. On page number 31. Negative operational event on page number 31.

Akshay Gawahar, Analyst — Banyan Tree Associates

That's it. Thank you.

Sam, Head of Investor Relations

Thank you. The next question is from the line of Saket Kapoor from Kapoor and Co. Please go ahead.

Speaker 3

Yeah. Namaste, sir. I hope I'm not even. Yes, you are. Thank you, sir. When we look at our cash flow for the consolidated entity, the PPE return of is to the tune of 9 crore. So, if you could just explain the nature of the thing and what have been the number for quarter 2, sir, and quarter 1, you can provide the backup. I think we already explained this earlier during the con call. One of our assets was impaired, so we had to incur the 9 crore impairment on the asset. However, we have received an insurance claim which is reflected in the other income.

Speaker 5

Okay, then that gets meted off in that case.

Speaker 3

And sir, then to the capex part, for the first half, sir, we have then capex to the tune of 231 crore, and we have closing balances also to the tune of 57-58 crore. So what should the CAPEX number for H2, and how will the debt, our debt number align to it? We have long-term borrowing that has moved up to 578,000. So, the CapEx plan for FY27 has been detailed on phase number 29. The total CapEx plan is $583 crores. In Q2, we capitalized $90 crores. In H1, we capitalized $182 crores. And the balance CapEx to be capitalized is roughly $400 here. Typically, in our business, a capex comes in in Q3 and Q4 for small school, at least domestically. Because there is a higher off-take of the cranes and due to the project execution picking up post-monstance. Regarding the guidance from the vector equity, it is available on page number 18. The projected vector equity for FY25 will be around 0.7 to 0.75.

Sam, Head of Investor Relations

What are our current maturities for the current year?

Speaker 3

You are asking about the current year payments to be made against the term loan? The current one can be called in balance, so the H2 will be able to make the payments.

Speaker 5

Okay.

Sam, Head of Investor Relations

Mr. Kapoor, do you have any further questions?

Speaker 5

No, no, I am joining the queue. Thank you, sir, and all the best to the team.

Sam, Head of Investor Relations

Thank you. A request to participants to press star then one on the touchstone phone to ask a question. The next question is from the line of Manish Bhantia, an individual investor. Please go ahead. Yes. Good evening. Am I audible? Yes, sir. You are audible. Please go ahead.

Speaker 3

Yeah. So, my question is regarding the funding of our expansion plan. You see, so far, our expansion plans have been driven primarily through internal accruals, which are driven by strong operational cash flow and debt, right? However, now that we are assessing that, you know, the cost of debt is increasing, and at the same time, we have aggressive plans to expand internationally. So are we looking at, you know, consisting of options to raise capital through probably a right issue or, you know, listing one of our subsidiaries to IPOs in order to raise funds, you know, to not only fund our expansion plans, at the same time retire debt to improve profitability at the net level and at the same time, you know, improving EPS because if our EBITDA margins are, you know, getting impacted, So at least at the net level, you know, we can improve our profitability. No, at this point of time, we are not looking to raise any equity. Okay. Thank you. Thank you.

Sam, Head of Investor Relations

Thank you. The next question is from the line of Satish Aughty, from SL Aughty & Co. Please go ahead.

Speaker 2

Yeah, hi, sir. Thanks for the opportunity. Sir, my first question relates to the order book. The order book that you have mentioned of 1582 pros, is that balance for 30th subtable or has the portion of this is being already exhibited in H1?

Speaker 3

It is a total order good for FI-27.

Speaker 2

Okay, total for FI-27. Okay, thanks. So what is the balance now?

Speaker 3

I don't know if I have audited numbers, published numbers. Fine, sir.

Speaker 2

Sir, my second question is, in your earlier Q1 call, you mentioned that the yield was 4% of GCT. Now, currently you are mentioning 3.8%. So, could you just explain how this got reduced?

Speaker 3

The yield has come down because there is a softening of pricing as the overtime has reduced in this quarter. So basically what is happening is because of the disruption in the supply chain, material and manpower is not able to flow to the job site, and as a consequence, the grains are not being used in overtime in the second quarter in the KSA region. First quarter had an OT impact, second quarter there was lower OT due to disruption in supply chain, resulting in delay in manpower and material availability at night.

Speaker 2

Okay, so this will increase in the next quarter, right?

Speaker 5

Thank you so much.

Sam, Head of Investor Relations

Thank you. Due to time constraints, we'll be now taking the last question. The next question is from the line of Ajay Singh Jhada for an individual investor. Please go ahead.

Speaker 3

Thank you. So, my question is with regards to KSA, and you could answer this at the NGL2. So, what kind of IRR are we aiming for on these cranes and the equipment that we are investing in right now? That's it. The IRR is an internal metric that we have set internally to deploy capital as a part of our capital allocation. We ask investors to look at ROE, ROE and yield. The yield that we are looking at in India is around 2%, and in KSA we are looking at around between 3.8 to 4%. The ROC that we are guided for is around 16%, and the return on equity is around 16% as well. We are also given a power guidance on return on capital employed at a blended level on page number 18 for FI 27 as well as FI 28.

Akshay Gawahar, Analyst — Banyan Tree Associates

Sure.

Speaker 5

Thank you.

Sam, Head of Investor Relations

Thank you. That was the last question. I would like to have the conference call over to the management for closing comments.

Speaker 3

So thanks, Sam, for moderating the discussion. Thank you all your investors and participants for taking time out of your busy day. I also want to thank the management and my employees, Abhijit, Pradeep, and Gaurav, who have been a part of the call. And further to that, I want to thank all our employees who are our frontline workers representing the company on the site. Finally, happy Diwadi to all, and we will see you again for our Q3 presentation.

Sam, Head of Investor Relations

Thank you, and a very happy Diwadi to you too, sir. On behalf of Sanghi Movers Limited, we now close the conference call. Thank you, everyone.