Standard Engineering Technology Limited (SETL) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Standard Engineering Technology Ltd. Q4FI26 Earnings Conference Call. As a reminder, all participant lines will be in a listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. I now have the conference call over to Ms. Priyashi Patel from GoIndia Advisors. Thank you and welcome to you.

Thank you, Steve. Good evening, everyone, and welcome to quarter four and FI26 earning call of Standard Engineering Technology Limited. We have on the call Mr. Nageshwarar Kandula, Managing Director, Mr. Ramakrishna Kandula, Executive Director, Mr. Venkate Mohan Rao Kattargadda, Executive Director, Mr. Yasu Yuki Ekeda, Executive Director, and Mr. Anjinyuri Pathuri, Chief Financial Officer. We must remind you that the discussion on today's call may include certain forward-looking statements and must be therefore viewed in conjunction with the risk that the company faces. I will now request Mr. Nageshwar, sir, to please take us through the financial and the business update, subsequent to which we will open the floor for the question and answer. Thank you, and over to you, sir.

Good evening, everyone. Thank you for joining us today on the Q4 and full year 2526 earning call. A warm welcome to all our shareholders, investors, analysts, bank partners, global partners, and members of the SETL family. I want to begin by saying this plainly. This has been the best year in our company's history. The members will peak for themselves. But I want to convey is that it is not just a scale of performance that stood out. It was the death of it. Revenue, profitability, cash flows, working capital, execution quality, all of them improved together. In the same year, that does not happen by accident. And I am deeply proud of what our team has built. Over the past three quarters, I have spoken at length about our evaluation from a glass-lined equipment manufacturer into a fully integrated precision engineering and turnkey solution company. The transformation is now complete and execution, not just in a intent. Glass-lining remains a core strength and one of our most profitable verticals, but today's standard engineering technology limited. Deliver is complex. Multi-disciplinary projects with single-point accountability, from concept, process engineering, and detailed design to fabrication, automation, installation, commissioning, water trial, and validation. Very few companies globally offer this depth under one roof for pharmaceutical, chemical, food, and beverages, and biotechnology industries. The acquisition of stigenic and standard C2C engineering announced and completed during the year and integration completely done. Having made this capability real and operational, CPC brings process civil HVAC, electrical and instrumentation engineering fully in-house. Tigenics strengthen our position in bioprocess and fermentation systems together. They make our integrated platform one of the most complete in the industry. As I said at the outset, This was the strongest financial year in your company history. And what makes particularly meaningful is that the improvement was broad-based. Revenues grow strongly year-on-year. Profit will grow alongside revenues not at the expense of investment. Operating cash flows improve substantially and our working capital cycle tightens, a discipline that is genuinely difficult to maintain while cementals need expanding operations at the pace we have. Taken together, these results reflect a business that is growing in a healthy and sustainable way. Total income took 793 crores and 26.7% year-on-year growth. EBITDA 138 crores, 15.2% year-on-year growth with an EBITDA margin 17.4%. Topic before tax CPT 111 crores, up by 18.9% year-on-year growth. Profits after tax 83 close, 21% year-on-year growth, with tax margins 10.5%. EPS improved 4 rupees. Working capital days has improved from 174 days to 150 days. Cash flows from operations are positive cash flows 45 close. Total income food, 230 crore, Q4 result. Total income food, 231 crore, reached up to 35% growth. EBIT, 36 crore, 26% growth, 15.55% margin. Profit before tax, 29 crore, reflecting 28.4% growth. Profit after tax, 21 crore, 27.8% growth. Stat margins, 9.1%. On margins, before some pressure on EBITDA, primarily driven by community prices increases in key input remedial. We are also making deliberate investments on manpower must be gear up for what we expect to be on an even stronger year ahead. These are considered investments not cost-overruns. We are actively working to offset this pressure through operational leverages as our revenue volume grows, tighter procurement discipline, and ongoing efficiency improvements across manufacturing and project execution. The revenue trajectory, we are earning itself the most powerful lever for margins recovery. A few technology milestones worth highlighting. Each of the approved points, not just a pipeline item. Our excellent two glossary heat exchangers, developed with our Japanese partner GLX HACO, now have over 200 units in the order book, with 100 already successfully delivered. This is commercial validation at scale. Customers are actively choosing this or graphic and ally alternatives, not because of price, but because of superior safety, reliability, and life cycle performance. That is the meaningful shift in customer behavior. And it tells us that market is ready for what we are building. Our conductivity glass lining reactors are progressing well. Multiple minutes have already been manufactured, supplied, and validated into the field. With encouraging feedback from regulated pharma markets, our international partner, IPP, has expressed strong interest on distributing this globally. We will share more on the formal launch in the quarter ahead, but the early signals are very positive. On our new 36-acre integrated advanced manufacturing campus, construction is progressing on plan. This facility will open the door to oil and gas, nuclear engineering, food and beverages, and heavy precision engineering. Sectors, we are not currently serving at scale. Actually, decisions with global partners and several of these areas are already underway. I want to highlight two governance decisions that consider as much Strategics as they are structural, and I want to give them the provenance to the deserve. The board has approved the re-designation of Mr. Esuqi Akada and an existing non-executive director to executive director. Subjective Stareholder Supplies. At the Ensuring AGM, this individual has been with our board since early 2023 and has been deeply involved in international business, development, strategic collaboration. And globally expansion, particularly in Japan and other overseas markets. In the enhanced executive role, they will lead global operations and marketing. With a focused market on... Depending on our technology partnership and expanding our international reach has to accelerate our global ambition. Having this, they will have dedicated executive focus on exactly what this space of growth demands. The board has also approved the appointment of Mr. Kancherla Monoeswaro, new independent director, subject to shareholders approval. This individual brings over 38 years experience in precision engineering, industrial manufacturing, and Engineering technology with expertise in 3D plant modeling, intelligent, schematic, and advanced engineering analysis governance depth we need to at board level. Board appointments are a signal of the kind of institutions we are building. One with the leadership and governance architecture to match our long-term ambition. We enter the loop. Financially, from a position of genuine strength, our order book pipeline is healthy, our execution capabilities are expanding, and our platform is now differentiated in a way that matters to customers. Our international business continues to grow, and we see meaningful headroom ahead. A global demand for integrated intervening solutions increased. The structural tailwinds remain firmly on our favor. India's Cdmo expansion, supply chain, diversification globally, increasing our long-term structural shifts, and we are positioned at the center of them. We are confident and continually strong growth in the year ahead. The investments we are making today in people, in technology, and infrastructure. Are they right once we escape or building the two hours? To our shareholders and investors. This year's results belong to much to you as they do to us. Your belief in this journey through every phase of our evaluation has been foundation on which everyone else has been given. Thank you. To our customers, employees, banking partners, and global partners, your trust and partnership make this possible. We do not take either lightly. We have come along a way, and the most exciting part of this story is still ahead and now. I will hand out to Mr. Eshuki Akada, Executive Director, Global Operations, and share his thoughts.

Welcome, Mr. Jesus.

Thank you, Nagesh. Good evening, everyone. My name is Yasuyuki Ikeda. I was elected to Executive Director of SETL. So I have been closely looking at SETL as a non-executive director for the last two years, And I am confidently... I can confidently say that this company is building something very unique for the future. As Nagesh just explained, that financial year 26 March was very strong. But what is more exciting is that, as Nagesh explained, we have started... From equipment manufacturing company, now we are adding engineering capability, execution capability, so we are becoming a one-stop solution company, which is very unique, and I have never seen such a company globally, and this is what we're trying to achieve. So, we have a – I'm very excited about the future growth potential of SETL. So today, we are still evolving from a traditional equipment manufacturing company into a global integrated engineering and technology platform. And very few companies, as I said, I have never seen such a company in the world. So we are trying to become something unique, something new to the market. And not only engineering, but advanced manufacturing. And turnkey project execution, automation, installation, commissioning water trial, validation, and documentation. So, we can do this all under one platform in the same company for pharmaceutical and chemical industry. So, this integrated capability creates. So, this integrated the capability. It creates a powerful long-term business model, and I believe, I strongly believe that the SETL is strategically positioned for the next phase of growth. So the company is expanding into new sectors, including oil and gas, nuclear engineering, food and beverage, advanced process industries, and high purity engineering systems, and so on. SETL is also building international partners, as Nagesh mentioned, technology collaboration with a company like JL Hakko Japan, which will strengthen its global positioning in the coming years. So, I am Japanese, so from Japanese perspective, there are still some areas that ETL needs to improve, but having this Japanese strength, the quality, contrast, conservative, keep the promise with The Indian good culture, this... The combination is not only the Indian customers can benefit from our collaboration, but we would like to tackle global market in the future. Of course, we will do it step-by-step, but Japan plus India, now we can implement the same in the other global countries. We can do the same thing. And so I believe that the financial year 27 is another major growth for SETO, so the future roadmap, the global partnership, technology focus, expansion plans, and the integrated engineering platform gives me confidence about the long-term future of SETO. And I am extremely exciting. This is an extremely exciting time for me as well, and thank you for your trust and continued support. I'm looking forward to building this future journey together. Thank you.

Thank you, sir.

We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchstone telephone. If you wish to withdraw yourself from the question queue, you may press star and 2. Participants are requested to use handset while asking a question.

Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Tisha with Sapphire Capital.

Please go ahead.

Hello. You are audible, sir?

Yes, yes, that is good.

Yes, thank you so much for this opportunity. So, first question was on a gross margin. So, a gross margin that declined from around 39% in Q3 to 32% in Q4. So, what was the reason for that?

I explained to you now, madam. Thank you for... Question. And I explained two things. One is metal, slightly metal prices are increased. And the second thing is we invested on people. Coming years, we have very big order books. Coming years, we have iGrow. We are invested on people. We recruited many people for the coming years growth perspective. So, how should we look at the... That is slightly impacted our profitability, and coming quarters is going to increase our profitability.

So, how should we see the EBITDA margins for FY27? EBITDA margins for FY27?

FY27 is going to improve.

Any sort of numbers, sir, that you like to put?

No, improve, madam. This is further, whatever we give a result, this further, 27 is going to improve, better than 26.

Okay, and what is the current order book position?

Our order book, approximately, today we have order in hand, approximately, thousand, thousand costs, above thousand costs.

And how much order book?

Our book button. Harder inflow is the pipeline. Currently, we have a thousand-force art book.

Yeah, so out of that, how much will we export?

You are talking about the 26 or 27?

No, so the 1000 crore order book, what will be the proportion of exports?

Export, I think 30 crore export is there, that is. Almost domestically. Majority is domestically.

Okay, yeah, so 30 crore. Okay, and how do you see, sir, the revenue, because we have a good order book, so what sort of growth are you expecting for FY27?

Compared to 26, better. We are going to do better. 27.

So this 25 percent sort of growth can we maintain?

Better than this year, madam. Damn sure.

Okay. And what was the KPS number for FI 26, sir? And what will be for FI 27?

FI 26, I think we invested in 30 costs. 40 costs invested. And coming 27, we are planning to 2 years. Coming 2 years, 130 costs we are going to invest in 150.

Last time, I think we spoke, there was one Greenfield passage that was coming up, and you said the construction is progressing.

How much? That project is 36 years old. That project is started now. Sorry. Now Greenfield project construction started. We are going to complete it in two years. First phase, we are going to complete 27 April 1st. So it will be 50% will be going to come into operations. Okay, so how much capacity are we adding this? Total capex investment is 130 cost. First year, this year, we are going to invest 65 cost. Next year, we are going to another 65 cost we are going to invest on.

Okay, how much capacity are we adding and what will be the revenue potential from these

Existing facilities also we are improving. Last call I explained to you, same thing. And existing facilities, now we are bringing a lot of robots and automatic welding machines, automatic polishing machines. And so existing facilities can handle another 50-70% revenue can handle. And that facility total, if you complete that all, that facility can handle up to 24% revenue. Total once existing facilities and a new facility is completely finished, then our manufacturing capability is almost 4% in course.

Could you just repeat the number? What will be the total potential?

Total existing facilities, I explained it clearly. Existing facilities, we are moderate happening and robust and automatic missions, everything we are adding. Once everything we add, existing facilities are going to a two-tone close capacity, and once the greenfield project is completed, that is another two-tone close capacity. Total existing and new facility, total will become a fourth-end course manufacturing capabilities you are going to get.

Okay, okay, okay. That is clear. Thank you so much, sir, and all the best.

Thank you. Thank you. The next question comes from the line of K.V. Raman with Sequent Investments. Please go ahead.

Hello, sir. Congratulations on good set of numbers. I think about two quarters back, you have given that you would be having a quarterly revenue of 250 to 300 crores. Is it possible that can we expect that 250 to 300 crores of quarterly revenue run rate from FI 27 onwards? Yes, it's possible, definitely, we are going to do it. And so, what's our current utilization in the existing plant?

Existing plants, almost 70-80% we are using, but once we moderate equipment, we are adding another 30% we can create existing facilities, capacity we can create.

Okay, and how much are you spending to modernize this for the upgradation of the existing brand?

Another, last year we invested another 40 crores, another 35 to 40 crores we are going to invest.

Okay.

And my second question is with respect to C2C Engineering. How much revenue did we do in C2C Engineering in FI26? And what's the guidance? How are we planning to grow that particular business in the coming year?

This year, actually, we are expecting, this year, we have finished the 24 course. And next thing, we are targeting 50 crores, is it possible, 50 crores. That is our capability. Integration and developing, small business activation and scale of the business. That is our philosophy. So, this year, I told you, not 24, but next year, 60 crores. Because of order book, already we have CTC order book almost 46, 47 crores at the moment. And 60 crores.

Understood, sir. Thank you. What about your science-genic acquisition you did in Q2? How was that panned out in FI 27? And what's the growth guidance for that in the coming year as well?

FI 26, Kaizumi did, I think, 30, something we did, this year, only four, because of last quarter only the year. I think this year also we are going to touch 60 crores, that is also.

So, if my understanding is right sir, from C to C, as well as the Fines Gen X, you will be having incremental 100 crores of sales. Yes, 100% increment, yes, correct, you are right. And so what about the margins in this P2C Engineering and Science Genics, are they similar margin to the company's overall margin or a better margin business?

Similar, similar margins.

Okay, similar margin. So, I just have one doubt. As you already mentioned that we are at 80% utilization, and our utilization will further improve. Can we expect the margin score to improve from the current 14% margin to around 16-17% margin in FI 27?

Margin is going to improve, definitely. Segar, I can't confirm, but margin is going to improve and revenue is going to better than 26. Improvement. Growth find.

So, can you explain? Yeah. Okay. Just a follow-up on this. Can you just explain where will the margin improvement come from, like operating leverage or exports, etc., something like that?

Actually, this year we invested on people. A very big number of employees we recruited for the future growth point of view. And already order book is very strong and customer response also very strong. And how we are going to match and improve? We are going to provide solutions. We are selling solutions. The product base always comparisons, always competition, but whenever we are going to provide to customer solutions, our margins are going to improve. That is, we believe. Last year also, some cases we saw, same we are going to implement in coming years.

Understood, sir. Thank you. Thank you so much, sir.

Thank you. The next question comes from the line of Trakhar Devriwal, which was Solutional Equities. Please go ahead.

Yeah. Hello, sir. Congratulations on a great set of numbers. Thank you. Thank you, sir. I'm relatively new to this industry.

I just wanted to understand your own account of 1,000 crores.

Sir, your wife is not clear, sir.

Hello. Yes. Yes, sir. So, I just wanted to understand your current 1,000 crore order book. So, is it mostly now driven by the CapEx renewables we are seeing in India, or are you also capturing market share from the larger competitors?

I can't comment on that commentator point of view. We got orders from my clients.

Okay. Okay. Okay. And what about export plans, sir?

Export plans are good, and good are in pipeline. We are discussing with clients, and due to some discussions is... Slight delay, but compared to last year, this year, the FI countries, our revenue is doubled, export revenue.

Okay.

So, we are expecting 27 also, this is going to grow.

Okay. Okay. Any specific countries or regions, sir, where you are focusing more?

No, we are focusing globe, sir. We are, equally, Europe and we are, and Middle East, we are getting good opportunities. Okay. Okay.

Great, sir. Thank you very much.

Thank you. Thank you.

Thank you. The next question comes from the line of Jatin from Awakeshith Financial Advisory. Please go ahead.

Can I order you? Sorry, thanks. In Q3, you have said that USD 3.5M of export is going to displace in Q4, but when we see on Q4 number, our current export is just 5.3% against the guidance which we have given about 12-13%. So, why the reason of this leakage, if you can explain?

The reason is... The equipment is almost ready, but the client is asking to wait this quarter. We are going to clear this first quarter, whatever pending order is there. Okay, and the next question. Our export is exiting compared to FI 25, FI 26 our revenue, export revenue is doubled. So same we are expecting in FI 27 also.

So, that remaining 3.5 million USD order, let's be a get. So, like, this revenue will come in next quarter, or it will delay further?

No, no, this first quarter we are going to, next to next, we are going to complete, and based on customer, we are waiting for some customer clearance results.

Okay, thank you. And the next question is, like, in a previous phone call, you have told, like, export and that solution and engineering have a premium margin compared to standalone equipment. As we can see, like, from FY25 to FY26, we have grown our export as well as engineering revenue has increased. But when we see on margin, that margin has been down. If you can explain this one.

Margin is now slightly down. Two things I told you. One is the metal sizes have increased. That is slightly impacted. And the second thing is we have recruited many employees for future growth point of view. That purpose slightly manpower is investment is happening. That is slightly margins are reduced. And FY27, it is going to pick up. Margins also going to increase. Margin points.

Okay. And on inventory side, our inventory has been doubled when we compare some by 25 to 26. Any reason on that? Doubled.

Because of export and our projects, we are integrating the lot of metals we need to procure and integrate and we will dispatch. Not only manufacturing, many things we need to do. That's the reason, our integration and also we are providing project solutions. So, a lot of inventory is required. Reduce the lead time and delivery time.

Okay, but when we see in presentation on page number 26, we can see like our inventory days has not been double or increased, like it has been decreased, so you can tell like how you are calculating those inventory days.

What is on the CFO? My CFO will do answer that.

So generally what we do is, because since we are received an advance from the customer for the inventory, we reduce the advance receivable customer from the inventory value, and then we will arrange the inventory days.

Okay. Okay, thank you.

Thank you. The next question comes from the line of Rohit Ory, Progressive Shares. Please go ahead.

Hi, Tim. A couple of questions. First one, sir, you mentioned about this order book. Can you take us to that, if you can break up this order book into the revenue mix and do that? Break up, please. The order book, if you can break up into glass line versus heavy engineering and the other segments.

No, no, we don't have that. We can't disclose the breakup.

Okay. Okay. In terms of this order book, we're winning these orders because of quality or speed or pricing.

You know, we are working with our Japanese partners, you know, a lot of quality and uniqueness also. Whatever we are company, our company is a complete, unique company. We are end-to-end solution providers. We are selling solutions. We are not independent equipment sellers.

Okay. So, we did mention about the advance that is taken by the customers, that is paid by the customers. What percentage is that? If you can share that, how much advance do we take from the customers?

Generally, we will accept 20%, 30%. Sometimes customers who do CO alone is 10%. Better than customers. This is the case advance.

Sir, we see this development which is happening with standard projects. You intend to enter INPRA and EPC. I know, I understand that you are giving solutions, but then in terms of the design capability, fabrication, and commission. So, do you think while going up the value chain are margin to trade difference?

No, sir. We are not going to do any ETC jobs also. ETC means Engineering and Procurement and Conestration. But we are, we are, we are different, unique company. We build the unique. What is, we are, anyhow, equipment we are manufacturing, and we are supplying, execution, watertight, designing, and concept to completion. And sometimes customers are asking, we are, we are, generally we will avoid the civil path to client. We can't do both, but clients are interested in, you can do this also. Then we don't want to do the conventional constructions. That is, we will take a lot of time, and manpower involvement. Sometimes, as today, you can see, last two, one quarter, people are not available due to elections, some, a lot of things. That, we don't want to affect our business. Then we are planning to, we have capability to pre-cast, we can build through pre-cast, very quickly, fast, building, production blocks will complete within six months. That capabilities we have, high engineering capabilities we have. So we started pre-cast only. We do any greenfield project coming day, any client wants, we can complete within 12 to 14 months. That is our capability. Now, we made a full platform for the pharma and chemical companies.

So, sir, despite this small shift, which is towards more towards the metal equipments that you might do, you are still hopeful that your margins will be in the range of maybe 17% or 20% kind of a range.

No, we are not. In the equipment point of view, always margins are very tight, but we are always, we provide the complete solution to clients. That advantage we are getting, future also, it is going to improve.

Okay, okay. So, we see this healthy growth which is there, but when we look at the balance sheet, the balance sheet comes under a little bit of stress. Understand there is expansion which is taking place at your end, and you are…

Can you elaborate what is the stress you understand and can explain?

Sir, in the inventories, CFOs are sad, but in terms of the balance sheet, if you see the receivables, they are also increasing, which gives you a little bit of a shift in the ROC also. So, that was the question that by when do you think that, you know, the cash conversion will become better from here on also?

You see, for 2780, this is going to cash conversion is going to be better, compared to FI26, 27 is going to be better. Already, compared to 25, 26 is a lot of improvement is happening. That is, FICO's operations, positive cash flow becomes a 45, and working capital is also becoming a 180, becoming a 160. So, next to coming here, any of our working capital, we require really 170, because our business model is like that. And collection point of view are improving, and margins point of view are improving. This year also slightly, we recruited many higher end employees, and we invested on manpower. So that is the reason slightly. This year, compared to 26th financial year, 27th, they are going to grow very high. So that manpower cost also they are going to cover coming years. So our revenue is also going to increase.

Sir, with the growth that we have, you think that in next two years or so that we will have good quality of free cash flow generation also?

Yes, yes, 100%. That is our target also.

Sir, my last question. I would request you to please come back in the queue for further questions. Hazar Ather is beating the line. Thank you. The next question comes from the line of Barbant Aurora from A2 Capital. Please go ahead.

What is the execution timeline for our current order group?

I think this is almost eight months, I think, eight months, nine months.

Okay, great. And, sir, you are mentioning the QPT that we are expecting a fame of around 108 billion in USD. So, this is on Xbox. Hello, am I over there?

Yes, your wife has some resources, some boards. Tell me, sir. Now again, sir, please ask me again question, sir.

Yeah, sir, in the PPT, we have mentioned that our global pay would be $108 billion in U.S.P. So any discussion or anything in pipeline that we are discussing with the clients and that you feel like that will be converted soon, like?

Yes, the global TAM is there. TAM is available. In India also 70,000 close TAM is there. And we are doing nothing. That is our scope is there. If we try, sky is not a limit. That's the reason we are expanding facilities and we are not only expanding our existing parts also. We are trying to enter new areas also. That is mentioned in presentation. And global TAM is very big, very big. One company, I don't want to mention here company, one company, German-based company, one product they are producing, that product is almost on TAM to 10 billion. They are doing 5 billion. We are nothing, we are not doing here, but scope is there. Future is very bright.

Understood, sir. But scope is there. But is there any discussion or any inquiries that we are getting or anything where we are getting?

The inquiries we are getting, we have started supplying. That's the reason. 25 versus 26 financial year, our export growth is doubled. Okay. 27 also, we are expecting same and positive response. But a bit of a challenge to accept Indian ports. Now we have added Japanese technology, Japanese culture, and now our global operations are going to control Mr. Yosuke Yagata. Further improvement is going to happen in our business, we believe.

Understood. Okay. So, and my second question was regarding the inventory, which is at 438 crore. So, what is the ageing of this inventory, son? This will be cleared in next 10 months.

Ah, next 10 months, yes. Next 10 months, this inventory is going to be cleared. I think this is all below to 180 days below, I think, this inventory. And maintaining this... Sorry. Yeah, yeah, sorry, sir, go ahead. Inventory is all quality inventory one. That is, I am clearing it to you.

Okay, understood. So, it is less than 180 days. That is what he said, correct? Yes, yes, yes. And, sir, maintaining at a high level inventory, is it like we are expecting good growth in the coming year? That is why you are maintaining at a high level inventory?

Yes, yes, yes. Next year, this year, compared to this year, next year is very high growth.

Okay. Is this not because of any supply chain constraints that you are feeling that could come due to this war and this global scenario? Is there anything like that, sir?

Yes, some challenges already we are facing. Because of today's material cost is one, cost is X, tomorrow is X plus one. That is, we are facing. Already, not me and the whole industry is facing. So, once the order received, immediately we are also booking the raw materials. So, daily valentine is very high, metals, particularly metals.

Okay, understood, sir. Thank you, thank you so much, and all the best, and you and your team is doing great job, sir.

Thank you, thank you, thank you.

Thank you. The next question comes from the line of Heyman Soni, an individual investor. Please go ahead.

Sir, thank you for providing me the opportunity. Sir, I have two questions. First question is, sir, you had earlier spoken that we will be manufacturing shell and tube glass-lined heat exchanger from the month of April. So, has it come live? First question is this. And sir, because currently I think we are importing it from Japan, right? And sir, the second thing which I wanted to know is, sir, you have briefly mentioned about the greenfield capex, which can generate 2,000 crores of revenue with 130 crore capex. So when does it come live, sir?

You know, first question, your heat exchanger question is, we have started manufacturing at a large company, partially, I explained earlier also, partially we started manufacturing, but Indian manufacturing heat exchangers, we sold in the market, already 50 numbers. So you're... This year, last April onwards, but full-fledged manufacturing, we are going to start on July 1st onwards. Full-fledged.

Okay. I'm sorry to interrupt. Himith, there is some extra disturbance from you.

Just a second. Is it bitter now?

Yes, yes.

Yeah, yeah. Tell me, sir.

Can you come again, sir? First question, my answer. Already, we manufactured in India. April onwards, we 50 numbers and we sold also. That is the customer, waiting for customer feedback, and... We are manpatching this. Earlier also, my calls, I clearly told, 80% equipment going to manpatching in Japan, 20% also we are manpatching in India. That process we started. April, we completed 50 and supplied, two clients. And another 50 numbers in hardware and hand, we are going to, coming days, we are going to exclude that also. But our heat exchanger unit is completely coming to operation in July 1st on us. Secondly, Greenfield project, we are coming in two years, we are going to invest 130 crores, but capacity we are creating, 2,000 crores, production capacity capabilities we are creating.

Sir, when does it come live?

It will come in two years, I told you now, two years. First place, 50%, 50% will come to operation, first April 27 onwards. And second, April 28th, April 1st onwards, second phase. We are building the facility two phases.

Okay, sir. So, first phase comes live by April 2027, and the second phase comes live by April 2028, right? And, sir, from July, how many number of pieces we are going to manufacture for glass line heat exchangers?

We are creating, facility, we are creating 200 numbers, based on all of the capacity we are creating.

200? Yes. And sir, what kind of revenue, per month, and sir, what kind of revenue potential does it have, sir? Incremental revenue?

We will see customer response and order book, then we will see. Once, for the first one year, two years, if you run, we will understand the growth and the requirements to customers. Okay, sir. TAM is there. TAM, total addressable market, 2,000 crores. Globally, 2 billion is available. We are only one manufacturer in India, this product.

TAM in India, sir, how much?

2,000 crores.

2,000 crores. Yes. Okay. Okay, sir. Thank you. Thanks a lot. Thanks a lot.

Thank you. Ladies and gentlemen, you are requested to limit your questions to one per participant. Thank you. Next question comes from the line of ABG, an individual investor. Please go ahead.

Hi, thanks for the opportunity. I'd like to ask a question about the new subsidiary that has been floated. It says that you're getting into pre-engineering buildings. Is this correct?

No, sir. Pre-engineering, not pre-cast buildings, sir. Pre-cast buildings.

Is there any specific reason why you're venturing out into this industry?

No, not industry, sir. What we are doing, sir, our business is Tarniki projects. Sometimes the clients we are asking to do, we are not interested to do civil construction, but sometimes some clients are asking to do complete. We don't want to touch civil also. Then civil conventional we are not interested. We have capability pre-cast. We can do pre-engineering for the building, our pipelines, how to travel, everything we can do engineering, that capability is there. Then we can easily, pre-cast, we can produce. Drops will be complete within six months. Our project speed is going to increase. If we enter this area, our project is going to increase the speed. Execution speed. That is our intention.

Okay. Another question that I have is with regards to the inventory and also the order book. I understand the inventory is 430 crores and the order book is 1000 crores.

Yes.

Is it correct that you are able to exhaust this order book within eight months of the next financial year, or it will take longer?

No, no longer. Eight months, eight to nine months, ten months maximum.

Okay. And what is the impact of the war in general to the business? Because we understand that the freight has become an issue, and also steel costs, as you told, is also another issue.

The metal price is increasing, and the export price, always we keep it in the customer's booth.

Your furnace is dependent on gas, or it's not? No, sir. We are not using any gas. Okay, all right. Thank you. Thank you. Best of luck.

Sir, one more important point, please, understanding. Our glass lining business still 30% next year. Our revenue is going to too much growth. So, glass lining is not our business. We are still focusing glass lining, and we are already, we are becoming slowly number one in the glass lining area. But our other areas are very high. Other products are very high. Our basket is.

Okay. Best of luck. Thank you so much. Thank you.

Thank you. The next question comes from the line of Wing Commander, BVM, Deja from IAF. Please go ahead.

Thank you for giving the opportunity. Congratulations to Standard Engineering and Technology Limited on their good set of numbers. My question is, in the presentation, it is mentioned the strategic priorities to enter into additional end-user industries like oil and gas and fireworks and fragments. Are there any future plans to enter into the nuclear reactors or any kind of segment into aerospace and defense?

Nuclear sector we are doing reactor.

I'm sorry, sir, we couldn't hear you.

Could you please repeat?

My question is... I understand your question, sir. We clearly mentioned in our presentation nuclear also we are entering. That's the reason we are greenfield project. We have started the constructions. Oil and gas and nuclear we are targeting. That's great, sir.

Can we be expecting by FY28? Yes, 28, yes. Thank you. Thank you, sir.

Thank you. The next question is a follow-up question. It's from the line of Prakhar Tebriwal from Choice International Equities. Please go ahead.

Hi, sir. Again, I had a question on the order book. Just to get an idea on which segment we expect to grow the fastest, I would like to get what the order book looks like for now.

All segments are growing, sir.

So, there was one, like, for example, our solutions is moving faster, right?

It's important to understand our revenue. Your RG is not available to me. Yes, tell me, sir.

Yeah, so our complete solutions segment is now looking more lucrative. It's gaining a larger share on the revenue. So, would that be the growth engine? So, just to get an idea on what segment should we focus on?

Our segment are going equally.

Okay.

Okay.

Thanks. Thank you.

The next question comes from the line of K.V. Raman with Sequent Investments. Please go ahead.

Yes, sir. I just had a follow-up question on the subsidy, which we floated, wherein we will be doing pre-cast buildings. I just want to understand why are we planning to get into this particular business, the pre-cast business?

Same question I answered three times, sir. Again, I will answer to you. Parma companies require blocks. Generally, the last three years we are saying we are not interested to do any civil work, customer scope we are leaving, but customers sometimes they are saying everything we should do. So we are not interested in construction business and construction blocks, walls, buildings, but pre-cast we have capability. Pre-cast if you do, customer also going to get benefit because of not requiring any coloring wall, not requiring any... So, precast buildings we are offering clients. So, what is the advantage? This project is going to complete between 12 to 14 months. Our speed is going to increase. Sometimes what happens, our equipment is everything is ready, but building is not ready. Building is not in our scope. So, project is delayed or dispatches are delayed. So, customer is saying, wait, building is not ready, project is, but customer also losing money because of government projects, suppose 150 course projects, delayed six months means finance cost, production delays, something, something. But that gap we understand in industry. Now we have started pre-cast buildings. So the project speed is going to increase and the delivery is also going faster. That's the reason we decided to enter pre-cast buildings. Buildings for pharma and chemical companies. We are not going to outside. We are not going to do any domestic buildings. We are strictly we are going to do with pharma and chemical production blocks for free cost buildings. Okay?

Okay. Understood, sir. Understood.

Thank you. The next question comes from Rohit Ory with Progressive Shares.

Please go ahead. Hi, sir. Yasu-san is there with us. Sir, if you can just share that, what are the key responsibilities which are assigned to him, and going forward, how will we probably improve the strategy or the performance of the company or maybe the risk of financial integrity, if Yasu can answer that. Thank you, sir.

Yes, yes, please answer, please, yes, please answer.

Yeah, okay. Thank you. So, I was assigned to lead the global operations and marketing, and of course, the strategy-wise, I have a last 20 years I'm leading AGI Group company. This is a 76-year-old company in Japan, more than 1,000 employees globally, and I have done many acquisitions in the last 10, 20 years. So having this experience and understanding the CETL, what we can do at the CETL and what is missing, I will share my experience with the management team, and we will build a global strategy how we can tackle other markets outside of India together with an existing management team. Did I answer your question? Well, let's...

If you can just take us through that, are we looking at some acquisition or merger of that kind because you seem to be specializing in M&A?

Yes, but I, of course, I cannot say it now, but that is part of our growth strategy. But just acquiring a company is just adding a number, and this is not what we should focus. So the organic growth, the combination of organic growth and the inorganic growth is necessary for our sustainable growth. So we're not just looking at one or two-year growth, but we are looking at sustainable, continuous growth. So, yes, we will be, the answer is yes, we will be acquiring some companies in the future.

Okay, thank you for answering my question.

Thank you.

Thank you. There are no further questions from the participants.

I would now like to hand the conference over to the management for closing comments.

Thank you. Thank you for attending all. And the future is very bright compared to 26 and 27 we are going to do more growth and profitability going to increase and the quality of business going to increase and our product range we are adding one second and we are adding new clients, new geographies. And 27 is the one more exciting year. We are expecting and we are parallely expanding our facilities. Thank you all.

Thank you. On behalf of GoMindia Advisors, that concludes this conference. Thank you for joining us. Daniel Menon, disconnect your lines. Thank you.

Thank you.