BEML Limited (BEML) Q4 2026 Earnings Call Transcript

Thank you. Thank you very much.

Is there any people? Is there somebody joining on?

No, no, no, no. So, it is a thing. And the meeting is recorded as that week.

Right, right.

We can start.

We can start with the presentation.

So, we start with the presentation or we go directly to the discussion. How do you propose it? So, there are some new things in the presentation. The new product launches, in the future what we are going to do, something on exports, so let us go through at least 3-4 slides. Akhil, our executive director of finance, Akhil will begin with the presentation.

Would it be nice? Although condition describing the company forward-looking performance, actual may vary. So, before I go to the, per se, the number communication, let me share a flagship achievement of the BML, which made a headline for BML and country per se. On the innovation, the first one which was backed off by our Honourable Prime Minister was put into the commercial usage.

Down below, we have a rope shower, 21 cubic meter, electric rope shower, which is put into the use.

We have a dump truck, certified, again electric version, put into the usage. On the connectivity, the high-speed rail facility, the new facility, established in Bangor complex, Thank you very much, everyone, and thank you very much for joining us, and welcome to the On the capacity expansion, we have a new facility for Rolling Stone at Vukal, inaugurated by the Honorable Union Minister of Defense. Quick on the VML. It is a schedule in a mid, established in 1964, under Mystery of Defense, with a 54% holding with the Mystery of Defense.

Okay, you can go to the 3-4 slides.

We will skip this. So, in 2025-26, these are the product we have developed, and put into the usage. So, we talked about the one-way-run sleeper train, HMB 12 by 12, Landry, 21 cubic rope saw-up, 550 HP motor director, and 75-75 bumper.

We have the 12 by 12, just hold up, the 12 by 12. This is mainly used for strategic forces command and for all major missile systems or radar systems. We were importing the CKD and doing only the SMB. In 2025, we rolled out our first indigenously manufactured 12x12, which has now gone extensive testing at our works at VRLink, at VRDO, and finally cleared for oil production. So, all the future 12x12, which will be used for LR SAM, which will be used for APNACA, any project, the most, it will be given indigenously. LAMV is a light armored multipurpose vehicle, which is 100% indigenously designed, developed. We did a lot of simulation testing for the belly protection. It has a stonite level 2 protection. And we have built the vehicle and it is now undergoing trials 31st of March. It will undergo extensive trials for a year and then EMI-AMC next year around August-September, once the price is open, then it will be decided whichever company is the L1, they will get this order. The 21 cubic meter rope shovel, this was done in a period of three years from scratch, design development, and the manufacturing started, the supply started in March 24th. This is a 750 ton machine, which was sent to site in 24 consignments. It was assembled at site, commissioned at site, and April 29th, it was thrown open for production. And since then, it has April 29th, 2025. So it is working seamlessly for more than one year now. The 550 HP motor grader was supplied to Southeastern Coalfields Ltd. Again, entirely indigenously developed, designed product, which was earlier being imported. 35 tonne electric dump truck is our effort at sustainability, providing green solution, and this is the first step towards the EV conversion to EV for all our dump trucks. So, this is the first one. Next in line is the 60 ton and 100 ton, which we intend to do this year, and 190 ton, maybe after double of loads.

So, under new model development, high-speed rail, sir, much talked about codecups on the real-time,

last time, long-range surface to air inside, on the platform of SMB 12x12, 8x8 and 6x6. Sir, just now talked about successful 100-ton electric version of bumper, and 8-ton-out has been here. Quick on the fleet size, as presented in the field, this needs a little bandwidth, you know, on the, our suppliers and service businesses, which has a, you know, potentially high margin, high growth, and we've actually, you know, triggered a fast food, haven't spoke, a lot of things, model. On the global league, please speak.

Thank you.

In the global reach, we have a population of the 1400 plus equipment, it was in three countries, and if you look at the fleet size, Africa is the one of the largest market, Middle East, the solvent bin, then SARC being a preferred supplier. CIS we have entered and progressing quite well. We talked about the wager achievement, the highest ever outlook, we are closing with 15,900 euros, including highest ever export out of 107 million dollars. Product we have already talked, the below, last below 2 line may be interest for all of you. A member will roll out the prototype of new driverless methodology for BMRCL phase 2 network. And one of the big, you know, milestone in the BML export, we have one of the metro rolling stock auto founder from overseas. So key external rewards and accolades that recognizes our leadership in engineering, leadership in innovation, the process improvement, and the leadership in governance and the brand. So last year, we have a cloud in almost all the vertical, well appreciated by the third party. Quick on the surrounding, the government will be at the major stakeholder 54.23 percent, mutual fund and resident individual are almost at

par 17.5 to 17.49.

The shareholder returns, the market cap along 31.3.2026, it was 11,400 crores, but today's it is around 40,700 crores. So, like Bembald, efforts are always to be able to consider giving the return to the shareholder. So, dividend, continuously paying the dividend, and of course the addition of the value. Last year on major activity, you know, we had in, like, we have splitted this year, 10 into 2 equities here, of 5 rupees face value, which has given a good leverage to the small buyer. On the financial stakes, so revenue is up, improved net worth, improved capital employed. So, it is a continuous, you know, the management is a continuous watchful on the performance and trying to leverage the growth and the margin expansion. So, the year 25-26, if you look at, it's a one side, there is a growth in the revenue, and there is a dip on the margin, mainly because of the one-time adjustment, the legacy adjustment, we have corrected in the balance sheet. But the underlying operation, the matrix shows the positive growth. So network high, the revenue from operation is all-time high, the capital is high, working capital is stable, the capex is all-time high, the R&D expenditure is all-time high. Just a break up of the business group-wise revenue. So, MNC, Defence and Rail Metro. So, if you see the defence vertical, there is a growth of, you know, 1,000 crores to 1,500 crores, which shows that there is quite a good opportunity in the defence segment. And, of course, the rails and metro, with the kind of order we are having, we see this year a big revenue jump in the rail metro. And the mining construction being a greater problem, so consistent on the performance side. The quarter-on-quarter reunion, FY26, we see that quarter-fourth is the major jump. After five years, we have touched around 80-100 tools. We found our VOP, which is in line with the sales group, almost 9% with respect to previous On the profitability, the PBT is around 200 crores which is 51 percent down. The PAC is around 148 crores, 50 percent down, oppose the impact of one time measure, the legacy correction on the balance sheet, EBITDA margin of 328 crores, which is down with the 38 crores with respect to previous year. As I refer, the capex and R&D expenditure is all-time high, which will give a major advantage in coming years to the BMI. Now, quick on the order. We have closed with the 15,900 close order book.

This is a all-time high in April 26.

One of the major excitement for the company is that

we have got 107 billion sports order bookings.

Probably on the left-hand side top, you see the break of the photo book, which has, you know, One of the major automobiles from the West Asia, on the mining equipment side, and a 60 million dollar automobiles from the rolling store from the African region. CA is continuing to be growing with a 10 million dollar automobiles in hand. Even the future pipeline is exciting. The West Asia could only be a repeat order of almost the same size. And the growth of what we see in the export, the rail and metro product side, we have MOU in place with SMH rail, which we see probably a good business opportunity from the militia. Tel Aviv metro, we are going to be with AMRC, very good opportunity size, around $250 million. And then Dublin Metrolink, size of around 90 million dollars. The collection and employee cost, collection in FY26, there is a reduction as compared to previous year. Previous year, we have a advance, was a kind of a major jump. Current year, our last quarter sales, and the delay in the collection from memory, which we have collected in the month of April May. So April May collection is the actually compensating of what we have stocked for in previous year. I mean, the employee cost is showing a little high as compared to previous year, but actually wages cost has come down. One-time impact of gratitude is added over the years. Quick on the working capital, letters and inventory. Letters, as I mentioned, the quarter force sales, you know, Good morning. And inventory, there is a reduction of the continuous efforts by the minimum on the inventory. So there is a check on the inventory, so there is some reduction on the inventory. That's all.

Thank you. The floor is open for discussions.

And this year, how we can, I mean, the exhibition most will be on the rolling stores, or, yeah, some cover on that. With respect to capacity, I think, we have a good order book, how we want the sports for the rolling shops are coming up. So, how we need to execute that, because our focus really may come up, I mean, as largely, somewhere around next year. Okay. Okay. Okay.

First, let me talk about the order book. We ended the order here with the order book of 15896. There was a spillover to April because of certain reasons. One was an export order, the other was an order from MOD. In fact, it was slated to be signed on 27th of March. At the last moment, it got shifted. Then there were, you know, some projects of the heavy earth-moaning machinery. There, the ordering got delayed. And even today also, we had become L1 in some projects in the month of February and March. Those orders are still to be finalized on us. So these were the two major reasons. Third is, we were expecting, you know, we were expecting more than 20, in fact. The high-speed train orders, 60 more, which was definitely tendered out in March, end of February, March. Already everything is completed, so now final reformalities are going on. So these were the three major reasons. If I would say that, yes, we expected to reach 20,000, but we fell short by almost 4,000 crores. That is number one. Number two, as far as the top line is concerned, so top line, if you look at the performance vertical-wise, mining... Vertical, which is the heavier moving machinery, as I mentioned. Generally, what happens is the order comes in third quarter, fourth quarter. So last year was extremely difficult, extremely difficult because of the unusual, unusually long and shifted monsoons because of which Kolinger deferred the ordering. And since the ordering did not happen, the revenue also did not happen. And that had a cascading impact on the overall. Working capital, working capital was more impacted because of the record sales in the last quarter, because of the skewed sales in the last quarter, there is always a pressure on the working capital, the debtor goes up. Even though inventory has gone down, but the debtor has gone. So these were the three reasons. Now, as far as the bottom line is concerned, so there was a direct impact of around 250 crores on account of the one-time correction in two projects. Plus, there was a one-time impact, a provision, which had to be created for the gratuity because of the new labour course and all. So, because of these one-time challenges, the desired result could not come. Otherwise, we would have crossed last year's number. By quite a significant margin. Nevertheless, the silver lining is that the two projects where we have one for one time correction, one time cleaning of the books, they are in foreign currency. And when we took that order, so one order we took in 2018, when the dollar was 60, the euro was 65. Now the dollar is past 95, euro is more than 105 or so. So, as per the accounting policy, when we start realizing the sales, then only we can take the benefit of the exchange rate variation. And this, coupled with the PVC clause that one of the projects says, it will mitigate the total hit by at least to the extent of 30%. That is what my calculation says. And in the meantime, if... The dollar continues to rise. So this gap, this mitigation will be further taken care of by at least 10 to 15%. So that is how it is. The current year, we started with the 5,500 crore order book, executable order for the year. First time in the history of the company, we have had this situation. Now, if you look at the performance, generally first quarter 10%, second quarter 20%, third quarter 30%, fourth quarter 40%, even 45% in some cases, this is mainly because of over dependence on mining, the heavy earth moving machinery, because the ordering itself takes place in the third quarter, fourth quarter. So year after year, that's the cycle. With the switch towards railing metro and defense, railing metro currently accounts for around 65% of the order book. Defense currently accounts for 25% of the order book, 4% is from HEMM, and 6% is from HEMM. With this kind of order pipeline, where the major commuter rail projects, now Vande Bharat, once it was inaugurated for commercial service in January, And the proto was cleared, the design was cleared, and now we are, there is a continuous supply of the balance rates. Number two, the LHP, the LHP order, 1600 core order. Again, we have to take a design clearance for the first two trains. Now we have got the clearance for dispatching the trains, and this one takes, so the dispatches start. Third is the high-speed train. High-speed train, as you all know, it's a very, very complex clean sheet design. And we have commenced the production of the train starting with the underframe components. And as I talked to you, the sidewall is under manufacturing. We expected that the first car body will be out by August, the car body shell, and we are trying to get the first train at the beginning of the next year, next calendar year. So that it will then go to the Surat Depot and after that it will undergo extensive testing. Before going there itself, it will undergo extensive testing at our works and then depot testing at Surat and then testing on the main line. So that will be four, five, six months. All the tests are already identified. So one train we have to give in the current financial year. So when we calculated 5,500 crores, all these orders were in place and all are executed. Another good thing is, which again has happened after, I would say, I don't know, I have never seen that, that in the heavier moving machinery, Currently, we have a sure shot order of around 350 cores that has come from the export, and that is only maybe a part of it because the contract has a provision of a repeat order of 100%, plus the spares, the sustenance is not yet covered in that. There is a 5% mandatory spares, which can increase up to 12%. So that order is already there. Plus, we have emerged L1 in three big opportunities, which value at around total around 600. So we should be getting the order maybe another couple of months from now. So as of now, we have a visibility of around 950 posts from the HEM at the beginning of the year. So that has never happened. I've never seen that. So this is over and above, because it's 350 crores also, export order rate came in April, so it is not accounted for in the 15,896 crore auto book. Plus the 16 train of high speed, it is to be finalized, so that will further add to our kitty. If you look at the auto book pipeline, this year we have an opportunity size of, I mean, Minus this high speed and other things, we have opportunity size of around 40,000 crores, which mainly consists of 70% from the railing metro, 20% from the defense, 5% from mining, 5% from exports. And in the railing metro, there are six tenders currently which have been floated, six different tenders, totalling around 554 cars. And we also have the MRVC tender, 2,856 cars, where total opportunity size is roughly around 35,000 to 40,000 crores. And we also have several defense orders in the pipeline. For example, the armored recovery vehicle overall, 230 numbers already, DSE has cleared. Self-propelled mine barrier, we are the sole bidder, and another two to three months we should have the order. The server for bridging system, 47 bridges, which should be roughly around 1,500 cores, is already there, and you have to give a photo, because there is a change in the material. Apart from that, the triple ME, which will be completing the current order, there is an order pipeline of 120 numbers roughly around 600 cores. So, several orders are in the pipeline, plus, of course, the QRSAM, the QRSAM around 600 HMVs. We should be getting this year. LRSAM, if you have seen, we have emerged L1 for the ground support system. So three types of HMVs, we have to give 15 numbers, and once the proto is established, there is a... A short, short order of around 900 HMVs. So that is the kind of pipeline we are looking at. Also, we have been, we are one of the three shortlisted bidders for the AMCA project. As you all know, we have partnered Bharat Forge and Data Patterns. And we have to bid for it, maybe another two, three months it will be decided to go out the L1. And it's, the ticket size is 15,000 crore. The five proto we have to build and one structure we have to build. And the facility of ADA will be used, and the testing facility is being created at Kutuparthi, so where the extensive testing will take place. So no CAPEX is involved there. It's only OPEX on our part. So that is a flavor of the entire thing. In the meantime, I would like to have a look at the export slide. So in the export slide, it was our, you know... It was a very, very long aspiration that we should have at least one for the rolling stock which we have got. Now we are targeting two more rolling stock metro opportunities, one in Tel Aviv and the other is Dublin. And we have a very potent combination with Delhi Metro. In fact, Delhi Metro has a fully owned subsidiary for the international business, that is DMI. So we have entered into an agreement with them. They will do the operation and maintenance, and we will do the rolling stock. Apart from that, there are several HEMM opportunities in the pipeline for us. So, in totality, we will look at... We are adding the numbers in the order book, the numbers at which we ended last year. We ended at 50,800. So the same number we would like to add in the current year as well. And if you are able to execute maybe some 6,000 or crores, then we end the year at around 24,000 or 5,000 crores. Why this is important is that it is very important for us to have an executive order pipeline year on year. Then only we'll be able to, you know, next year, if we open the year with the executable order book of, say, 7,000, 8,000 crores, then we can aspire to at least achieve that much revenue from day one. And we can do it equitably across all the quarters. That is the idea. So year on year, if you're able to add 10,000, 12,000 crores in the order book, it will keep on adding. And as a thumb rule, Whatever is the order book size, one third of it generally is executed. So following that thumb rule, important thing is to book the orders also, execute also, develop the capability and the capacity. So we are doing all the book. So, with Aditya being commissioned, another, I would say, if it is high-speed train only, so we can do 6 to 8 coaches per month for high-speed. If it is metro, we can do more. We can do probably 12 coaches per month. So, it adds to our capacity by at least 100. 100 for metro. If it is high speed, it will be around 50 to 70 per year. Now, coming to another facility, that is the Brahma, the investment that we have envisaged, there, once the plant is fully operational, there the capacity will be for the 300-350. But that is going to take time, another two and a half years, three years, it may take. And for example, the MRBC project, it will take another six months for it to be finalized. That is a very optimistic timeline I am giving. After that, it has a time cycle of around two and a half years for the proto, two and a half years to three years for the proto, and then the bulk production. So, we will have ample time. By that time, the Bhopal facility will be in place. In the meantime, if we are able to get some more metro orders also. So first is we will start with the metro for the western part of the country, northern part of the country. There are two projects, two tenders for DMRC, one tender for Mumbai. So we'll shift to Bhopal because that is a time which will be required for the project to start. And we can keep on doing the LHB, if not the LHB, then the drag machines. At Banyu. Any further on the sleeper order, maybe two, three more trains can come. Amrit Bharat version 4. Memu. Memu is something which is very much required in the country. So we'll try to get some Memu orders. So all these will keep the order book pipeline also healthy and also ensure that capacity is utilized. Plus the high speed train, if there's two trains, two proto plus 16 more. Which is in the pipeline plus the seven corridors which have been announced. So seven corridors, it will all be 350 kmh. So we have already started preparing for Aluminum. Almost for a year we are preparing for it. And that will give us a huge potential. That is a huge potential for us. That is how, you know, we are quite upbeat on the transportation business. The diversification to aerospace. In the heavy earth-moving machinery, the major strategy is to go for more and more exports and to diversify into surface miner and new product development. For example, the EV trucks, they will open a big market for us in the exports, the dump trucks, and, you know, foray into new products like the tunnel boring machine and the ship-to-shore planes. That is how the outlook is. That is how the strategy on the vision is. Sir, revenue mix has already undergone a change last year. If you see, mining has come down to 40-41%. Defence and Italy and Metro have come down to 59%. So, my guess is this year, Defence and rail and metro should again be in that age 57, 58. Mining will do. This year mining is expected to do phenomenally well as compared to last year. But that is again cyclical. So if we look at the medium to long term perspective, then rail and metro... And defense put together, I would say rail metro should account for very shortly 40%, 45% once we start firing all cylinders. And rail metro and defense put together should do somewhere around 65 to 30%. It should contribute. Mining, obviously, it will provide giving us a baseline maybe 30, 35%. Mining is, I mean, they're very distinct. All three are very distinct. Mining is a fast turnaround product and gives us quick cash. Whereas defense, it's a long gestation period. You know, time cycles are very long, from the AON stage to finally clearance of the FOPM. It takes three to four years, minimum. But that way, faster is rail and metro. But there again, there is a gestation period of the proto. Proto is usually two years to two and a half years. So, there has to be a continuous order book of Railway Metro and Defence to give us the numbers, the big numbers, and for the baseline, mining construction with focus on exports.

Mining, where do you have to focus?

No, no. Mining, this year, fortunately, we have already a visibility. The pipeline also is there. Visibility is also there. So it should pick up from the second quarter, it should pick up from the second quarter itself rather than going to the last quarter. But that can not be guaranteed every year. So we have to focus more and more on exports. This year itself we have to book more orders for mining for next year and for next to next year.

The three major

points that I have explained, that I have communicated, they are one. Apart from that, you know, there may be some provisions being created for regular accruals on account of the gratuity.

Yes, regular provision, regular provision will not be one year.

It will not be one time. It will be recurable.

But in terms of any other project, it will be provided for...

As of all.

Not which comes to my mind. We will need to see, but it should not have that big an impact. We need to see the provision which has been created. Not in the current projects that we are doing for metro or for whale. Even the current defense projects are all putting on time. We will work it out. As I mentioned, we are at a very nascent stage of the product development. So it will be at least five years. It will be at least five years before a tunnel-boring machine and STS current it starts leaving. Because that is the development period.

Sir, once the capacity is being in the end of the end, it will contribute 5000 growth per m. It

should, because the tunnel-boring machine requirement is huge. We are currently going only to the 6.5-meter biop. And later on, we will gradually move towards a 30-meter, 15-meter. There is a challenge in the country for machining of any turn-voting machine beyond 12-meter diameter. That is, normally shipped to shore-crane nobody manufactures in the country. So, once it stabilizes, the port operators, you know, we are banking on the... Maritime Vision, as per the Maritime Vision, 12 Megaports and 200 Miner Ports, so every one of these Ports will require a ship-to-shore train, and average what we are looking at is around 80 to 100 ship-to-shore trains, and plus for big ships shipbuilding volat trains, volat trains ranging from 400 tons to 1,200 tons also, volat trains will come in the next phase, but first phase will be ship-to-shore.

Okay, so again, this year, we had some, it was a couple of, we had, we had nothing, I am back, but going forward, what kind of question is the margin, given that column is, this was being changed, everything changed, and how, how sensitive is your margin because of,

because of, because of, because of, So I will take the second question first. So raw material prices are definitely, I mean, we've been feeling the pinch maybe in some time because the effects of this conflict get to sink in totally. That is definitely going to impact us. Only thing is that since the contracts that we are doing, especially for metro and thermal oil also, there is a price variation loss, it will be taken to some extent. That is number one. Number two is, if you look at the sustainable margins, in my opinion, anything around 16% of EBITDA should be a sustainable. We should be able to sustain. Because what happens is, That we have a certain threshold number. Any sales revenue we do above that number, it results in exponential contribution to the bottom line.

Break even now, it's somewhere near 4,000. Based on concern or increase in price, above that, contribution will increase.

So, with this increase and turnover and contribution, definitely a market.

So, that's why what James has said, around 16% EBITDA, they are expecting.

Despite of, you are saying, Martins will impact because of the product size.

Can you give the break-up, in each of these segments, you give the break-up, like, all the market size.

It's very digital.

Product basis is based on the product size.

I'll give you a sense of that. Export will be the best for us. And we can only hope that the US dollar will grow further stronger. Number two is the sustenance. And don't ask me how much margin, okay, I cannot tell you. Then it is followed by the high-end, there we have the moving machinery and the commuter rail. So these three are the margin types.

And second is, can you talk about your working capital, because this year they are seeing, of course, you said flash for the, mainly because of flash for the, but what kind of sustainable working capital is it can be?

We are looking at a reduction in working capital by at least 30% VC. That is what we are trying. And for that, inventory is one part. Second is the debt of the cash flow. And if we are able to deliver in every quarter, then definitely the cash flow will be in, rather than skewing it up in the last three quarters. That is what we are trying. And so, with the... Order book, executable order book of a certain number at the beginning of the year, we stand a better chance to improve it. So maybe instead of only 15-20% in the first half, if you are able to ramp it up to 30-35% in the first half, it will be a huge chunk.

That is what we have.

This year, we are expecting an exhibition from Vail Metro of at least 2,000 crores. And, as I said, if we look at ordering flow of around 15,000 in 2015-2017, Valium Metro should be around 70% of that. So, it should be roughly again 10% of that.

So, you asked me that the end of the daily ordering for our site of the closing order from Del Vogue.

Yes, it is. Yes.

And the major order would be from the metro itself, or there will be some...

Both, both, both. Both?

And for the difference, I think, we are not seeing that kind of, that kind of moment of this year.

No, difference we are, definitely, as I mentioned, I mean, some, you know, some orders are so short. Like the QRS and the self-properiment barrier. Then we have this R-material vehicle overall. These are short of the space.

So roughly, we are in the 50.000 crore to volume right from the defense.

Yeah.

And how much expectation is the 1530?

Defense also, we will try 1500 to 1700. Anything between 1500 to 2000.

So what are we going to do? And in railway, we are still sure that we have any margins. And is there any flaws also, you know, to pass on any common disorder? Because these orders were 22 years back and we have seen these orders. And then we have seen the quality depression.

So, basically, you see, whatever orders we have correct, whether it's a LHP or whether it's a high-speed, whether it's a monthly sleeper, ordering is already done. So those kinds of pressures will not be there. The pressure will be on the future orders. The pressure will be on the future orders that we get either for Metro or for Rio. Where the pressure will be. But at the same time, I mean, these days all Metro projects have the PVC trust. So it will mitigate to...

But the earlier order,

you know, Bangalore, only the Mumbai one, which was a very old order, that doesn't have a PVC. Every other project has a PVC.

Sir, out of 9-10 number of orders, quite often, how much?

Mumbai? Mumbai is 2000.

The activity will not be done this year, sir?

No, it will start this year, provided when the holiday depo is ready. You see, currently we have six tenders, and six tenders, the value is roughly around 8,000 crores. The commuter rail tenders that are expected this year, it should be... Somewhere around 30-40,000 crore, 60-40 if it is given. So our share will be accordingly divided since the propulsion supplier is a lead trader. So if we consider 10,000 crore, so 10,000 should have 70% coming from the motorway, 30% from the motorway. There is always a risk in international marketing, international business, whether it is Africa, whether it is Far East, whether it is CIS. Everywhere, it's a risk. You see, before February of this year, who would have thought that the GCC region will be exposed to so much risk? No one could have imagined, right? We had just executed a contract in Oman, and I was expecting a repeat order from Oman, but that is on hold now. Right. So, risk is always there. Risk is more in the international business as compared to the domestic market. Definitely discussed it.

Good morning, everyone.

Key clients. The key clients for my export market are, you know, Metro Corporation in Africa. I won't name them. Then there is... The government in one country in the West Asia, from where we have got the major order, as far as CIS is concerned, there is a big industrial house, mining house in gold mines, who have already taken 10 bulldozers from us. They have been recently commissioned. Apart from that, there is another big corporation, the CIS region, who have already purchased our bulldozers. For the gold mine, we expect that we will have more orders. Then, in the North Africa region, there is a government entity with whom we have been doing business for the last 30-40 odd years. And we have supplied a lot of HEMM. So there, there is already a tender is there. The total value of the tender is around 110 million euros. Out of which the equipment that we are looking for is in the range of 20-25 million euros. So in a nutshell, this is what we are looking at. None of these projects are funded by, okay, only one project is funded by the Multilateral Agency, that is North Africa. North Africa project, it is funded by Multilateral Agency. Otherwise, every other project is being funded by, from their own resources. Sustainable number for R&D spend, it should be around 7%. Yeah, we have already reached 6.25% of the revenue. Even if the revenue goes up, we will keep it at around 7%. We have already some 40-odd products lined up. Employee expense, you know, it has gone down as a percentage of revenue this year, slightly. But we have to... You know, the catch is to maintain the absolute number in the expenditure, or maybe it can marginally go up, but the top line has to work substantially. Then the employee cost as a percentage of revenue should come down to around 17%, which is again not an easy task. It's not an easy task, considering that now... The floor wages and other things which have come up. So definitely, it will be a challenge, I want to say something. The new Liverpool that has come into the future, that will have little bit changes in the

payout for the outsourced employees. That will be one of the concepts. But same day, we are trying to minimize the number of managers engaged and trying to tune down wherever it is not required. These are the exercises and all. We try to improve our top line. That was the main thing, what Sims said. So the top line, once it goes up, automatically it should come down to 17. Say 17 in the manufacturing sector.

Thank you, Dr. Rabindranath. What is the reason for the export?

Sorry?

How is the differential margin we need to export compared to the on-street markets? I don't know about that. What is the reason for the export?

To be honest, we have not done a specific analysis, but again, you know, it all depends. Suppose we plan for EBITDA of around, say, 20% for exports, but if the dollar further goes up, it will go up to 25% also.

But when, after I have a bidding, what is our schedule?

At the time of bidding, generally, we have an EBITDA in higher double digits.

I see. For Mr. Bidding, I'd say, you can go somewhere. How really that depends?

You see, it all depends on the strategy, on the competition, right? It all depends on the competition. But in exports, we definitely ensure that adequate margins are out. I cannot give a number because it's a part of the strategy. So finally, what result comes out that is important for us.

Thank you.

Receivables will come down drastically to start with in the HEMM segment because generally it is the last quarter is from the HEMM as of now. So that is the first correction that we have. Second is, you know, the commuter rail metro. So, generally, if we are, suppose we do a sale in the month of June, or dispatch a train, for example, so generally the cycle is around two months. Right. So, if I am able to do majority of the work in the first three quarters, my chances of getting the cash by the end of the last quarter are much, much higher. Heard in defense, you know, sometimes things are beyond our control. Last time, even though we had supplied and our bills were also submitted, and normally in defense, we don't face this kind of problem. Defense, in the last two months, there is a huge monitoring of defense expenditure and everything is cleared. But this time, because of certain reasons, it could not happen. Maybe because we had done more than what we had projected. That may have been one of the reasons. Sometimes it is not good to do more also. So we realized that. So now the projection that we give is a bit on the higher side. Better to give on the higher side so that when we improve upon our performance, like we improved by almost 40% in the last year. So, there are no challenges as far as the fund availability is concerned. But anyhow, whatever we could not get by the end of March, we have already got in the first two months.

Can I just say that, on the front end, I don't want to say, we can talk about the only metrics that are fixed for Spotify, based on the entire outlook and the prioritization process.

No, no. I didn't say. I only said that amongst the metro orders currently, only Mumbai has a fixed cost, it's a fixed cost contract. The other two metro projects have a PBC.

So are you saying PBC order to complex previous, fixed cost order, a fixed cost order, a PBC order, a PBC order, a PBC order, a PBC order class, a PBC order class, a PBC order class. Can you find it on?

You say it is important when it's a project. But it's important when it's a project. If it's a product like mining, it's not important, because the turnaround time is very fast, so there cannot be any PVC in that. So every mining project is a fixed-fast contract. And the sustenance part, which is a 9-year-old, there, again, there is an escalation. And every year, basically, what happens is, for India and we sit together, and we decide on the escalation in the spare parts prices. Right, for the cost cap contracts, for the mark contracts and all. So it is there, it is there inbuilt. So only the sustenance part, there is an escalation, but not in the product line.

Good morning, everyone.

Thank you. Thank you.

Thank you.

No, no, audio.

Good morning, everyone.

Thank you.