Earnings Call Transcript - XNSE:EPACKPEB 2026-11-04

Operator

Ladies and gentlemen, good day and welcome to the Q2 and H1 FY27, a next conference call of EPAC FreeFab Technologies, hosted by Dam Capital Advisors Limited. As a reminder, all personal answers are in the lesson-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 attached on phone. Please note that this conference is staying recorded. I want to have the conference over to Mr. Asim Bharde from Dam Capital Advisors. Thank you, and over to you, sir.

Speaker 8

Thank you, and good evening to everyone who has joined this call today. So, from the management side, from E535 Technologies Management, we have Mr. Sanjay Singhalia, Managing Director and CEO, Mr. Nikhil Botra, Executive Director, and Mr. Rahul Agarwal, CFO on the call. So, we'll begin the call with Mr. Pinganya for his initial thoughts, and for that, we can open up to our questions.

Speaker 2

Thank you, and over to you, sir. Investor call.

Sanjay Singhalia, CEO

So let me start with the full picture first. The revenue of the company for H1 grew by 19% to 867 crores. And quarter two was our biggest quarter ever at 501 crores revenue. But that growth did not flow through two things. One is the profit and the second is the cash flows. And I will tell you why. The profit grew by 2%, but the operating cash flow was negative. So, two things happened here. First is, the still and other input cost rose faster than we could pass them through on orders already being executed. So, our gross margin fell by almost 2.3%. And during our first investor call of this financial year, I have already, you know, spoken about the impact of steel price increase on our earnings. The second was the working capital went up to almost 60 days. Our guidance has always been around 40 to 45 days with the working capital. So there is a slippage of almost 15 to 18 days there. So there are two reasons for this. First is, over the last six months, we have executed large industrial and renewable projects on milestone-based billing, and every one of those receivables is backed by a letter of credit. So the money is secured, and the question is only about timing. So, in this, you know, the LC process is linked to the milestone billing, and there has been certain delays in that. So, due to that, the receivables went up by almost 144 crores. But the good thing is, since they are backed by LC, so we expect this to normalize in this quarter fee. We also, the second part was, you know, we built the inventory of the steel deliberately, and that resulted in a working capital increase of almost 92 crores for us. So, while that results in the increase of working capital, but that also protects us against further price increase and secures our steel availability for the entire quarter. So as a result of this, we expect our margins in the current quarter to be better than what we have delivered in the entire H1. Now, I will tell you a few things, you know, what we are doing here. So, every new order is now priced on current input cost, and we have long-term sourcing arrangements in place. We are also pushing for price escalation clauses with our large customers. Yes, some of the customers have agreed, but it hasn't become a standard practice yet. So, I won't claim it. Collections are the single biggest priority for us in the H2, and I will be personally reporting working capital to you every quarter till we normalize it.

Speaker 2

The investors, what gives me a lot of confidence

Sanjay Singhalia, CEO

in our business is demand and capacity. Order inflow in H1 grew almost 71% to 1124 crores. During our first call in this financial year, I had said that our target was to do order booking of 2000 crores in this financial year. So, in the H1 itself, we have done 1,124 crore rupees of order booking, and this is a testimony of the execution which we have done over the past 3-4 years, and also of the strength of our team and our brand. And our order book today stands at 1,462 crores, which gives us a clear visibility of revenue over the next 8 to 9 months. Also, on 30th of October, about three, four, well, last week only, we have added 13,000 tons of steel capacity, processing capacity at our Giloth Greenfield project, that is Unit 5. And we also commissioned our sandwich panel line in Giloth, Rajasthan, which will cater to the sandwich panel business for the northern market. One of the important developments that the company is also doing is, The Greenfield Project in Gujarat, which will strengthen our presence in the West. And as conveyed earlier, we plan to get this new plant in Gujarat commissioned in the fourth quarter of the current financial year. On guidance, we are maintaining our FY27 outlook of 1,900 crore rupees of revenue. With a 10 to 10.5% EBITDA margin, our Q2 margin already recovered to 10.1% from 9.4% in quarter 1. And H2 will see more of our orders priced at current input price as well as the inventory built up has given us a lot of confidence that we will be able to improve upon our loss margin in this quarter and the quarter next to this. We remain net cash positive. ICRA has reconfirmed our A plus rating and we will continue to deploy our IPO process with discipline. H1 has showed that the demand is real and H2 is all about showing you that we can convert it into margin and cash. So with that, I'm happy to take... Thank you very much.

Operator

We will now begin the question and answer session. Anyone who wishes to ask questions may press star and run on their touchtone telephone. If you wish to remove your spell from question queue, you may press star and turn. Participants are requested to use answers while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Rohit Taparia, an individual investor. Please go ahead.

Rohit Taparia, Analyst — Individual Investor

Hello, first of all, thank you for taking my question and congratulations on the next set of numbers. My question is basically on the driving side, for FY27, you have mentioned in 1900 to 1950 Take a look at the return of approximately 10 to 10.5%. And what is the long-term guidance for sq28 and sq29 insta company can give a link?

Sanjay Singhalia, CEO

Thank you, Rohit, for the question. Yes, we are guiding the market to 1,900 goals plus revenue for the financial year with a EBITDA margin of 10 to 10.5%. And going forward also, like, you know, we are doing this here, we are growing at 25 to 50% CAGR. And going forward also, that will be our endeavor to grow at 25% to 30%. The reason be, the market, the demand cycle is supporting us at this time. So I'm very sure, you know, we have the capacities and the team to deliver, you know, like the growth of 25% plus year on year for the next couple of years.

Rohit Taparia, Analyst — Individual Investor

Okay, sir, for the next couple of years, I mean, for the next, say, two to three years.

Sanjay Singhalia, CEO

I'll say for the next couple of years, yes, we'll grow at 25% plus.

Rohit Taparia, Analyst — Individual Investor

Okay, sir, and currently, what are the companies having, what are the peak revenue propension for the company at the current capacity?

Sanjay Singhalia, CEO

Yeah, that's a great question. So, with this plant that we have just commissioned at the law for the Sanchez panels, plus the one which is coming up in Gujarat, with that the total capacity of the company would be to do a revenue of close to 2,800 to 3,000 crores.

Rohit Taparia, Analyst — Individual Investor

Okay, 18,000 to 3,000 crores. So basically, 19,000 if we add 25,000 to 30 percent. So further, we would be doing any capex.

Sanjay Singhalia, CEO

For 27, 28, actually, we won't need any capex, new capex. The idea of 27, 28 would be to do the utilization of the new plants that we have set up. So, you know, like, after IPO, what we have done is we have increased our structural seal capacity through a brownfield expansion in Mamba to Andhra Pradesh. And so, idea would be to, you know, like, utilize that capacity and then this greenfield project at Gilot for the Sandwich panels and Gujarat. So, on 27-28, basically, we'll be utilizing, the idea will be to utilize all the plants and do a capacitization of 80-83% there. And in case, you know, we feel that order book has been really strong in the 27-28 as well, then definitely we'll add some more capacity. But it can be in the form of a brownfield also because in Gujarat plant, you know, if you talk of the plant that has been set up, we are just putting up two lines to start with, whereas the capacity is to, you know, add four or five lines per year. So, if we had pipelines, you know, we would be in a position to produce around 80,000 tons from that plant, but we are starting with only 50,000 tons there.

Rohit Taparia, Analyst — Individual Investor

Thank you, sir. I will, for further questions, I will join the queue. Thank you, sir.

Operator

Thank you. And a reminder to all the participants, you may press star and run.

Speaker 2

Participants may press star and want to ask questions. Participants, you may press star and want to ask questions.

Operator

The next question is from the line of Devang Patil from Soksmanesha Capital. Please go ahead.

Devang Patil, Analyst — Soksmanesha Capital

Hi, sir. On the steel price issue, in earlier calls you had mentioned, we would also be, you know, getting some compensation from existing orders. So, were we able to get some escalation on ongoing orders because of the sharp steel price increase?

Sanjay Singhalia, CEO

Yes, I mentioned that the existing orders that we have in hand, we get the price increase, and yes, we were able to get the price increase, and that is the reason the margins, if you see in this quarter, has improved as well. From 9.4, it is 10.1%, so mainly driven by that. Although, at the same time in this quarter itself, the raw metal prices have gone up by as much as 17% to 18%, but still the margins of the company improved.

Devang Patil, Analyst — Soksmanesha Capital

Okay, and secondly, on the working capital terms with customers, are we able to, you know, get more favorable terms or better customer advances, given that the, you know, demand is very strong, so are things turning in our favor on the working capital side on new contracts?

Sanjay Singhalia, CEO

On the working capital front, you know, I think our focus in the last couple of years has been market penetration. And I think, you know, we have raised a considerable scale now to be able to not only command better margins, but also to command better payment terms. So, yes, in the last few months, we have started to focus on getting better payment terms from our customers. So, I think over the period of next two to three quarters, we will start to see that change as well.

Devang Patil, Analyst — Soksmanesha Capital

If you can just give an idea, what is the customer advances you get on orders on average?

Sanjay Singhalia, CEO

It varies, you know, like, typically it is stage-by-spamish, so there are multiple stages of supply as well as of execution. So, in supply, typically, we'll have around five stages, and the stage one is advanced, and then, again, you're doing approval, that is before dispatches, and then on dispatch, and after dispatch, and finally handing over, handing over. So, these are the five stages, typically, over which, you know, the entire payment is distributed. So, it all depends on how do we structure these, you know, stages. So, now the idea would be that we want to get maximum payments in the first two stage, that is, you know, even before the supplies have commenced.

Devang Patil, Analyst — Soksmanesha Capital

Okay. On the order book, this should be executed over the next 8 to 10 months. And you can just clarify, the large 165 crore order it mentions has to be executed in 4 months. So, is that a supply contract or is that a full turnkey that you will be executing such a large project in such a short time?

Sanjay Singhalia, CEO

Yeah. So, as I said, the current order book, pending order book is 1462 crores. And with a run rate in the prefab of close to 150 crores that we assume that you'll be able to do easily. So it gives us a visibility of eight to nine months. And as far as this large order is concerned, happy to share that in that order, about 95% of the billing has already been done till date. And that is a supply plus execution contract. As per that contract, the execution was supposed to be completed by 31st of October. But due to the delays from the customer side on providing the civil front, I think the handing over should be happening sometime in the month of December end.

Devang Patil, Analyst — Soksmanesha Capital

Okay. In our presentation, we mentioned getting data center and semiconductor orders. Is that something? Are you putting capacity for heavy structures to get ready for that? And if it is semiconductors, are we looking to participate as turnkey again or supply orders for the heavy structure? Yeah.

Sanjay Singhalia, CEO

So, we are getting our first order of structural steel supplying to the data center in this quarter, and it is a heavy structure, but, you know, in fact, the best part is whatever investments we have done in the past, a lot of investment accommodates both heavy structure as well as the PV buildings. So, we don't need to do some additional capex to meet the demand of the data center right now in whatever inquiries we are getting from them. And your next part was about the... Your next part of the question was one was about the data center, the second part was about...

Devang Patil, Analyst — Soksmanesha Capital

Semiconductor, also, how are you gearing up for participating there? And is there something in the pipeline for us?

Sanjay Singhalia, CEO

Yeah, so on the semiconductor front, we haven't done any building for the semiconductor, but right now there are few enquiries and discussions going on for the semiconductor, and the other part of the question was whether we would be giving a complete turnkey solution. No, we won't be giving a complete turnkey solution. We are a prefab pre-engineered building company, and that is our expertise, and we would be remaining in that sector only.

Devang Patil, Analyst — Soksmanesha Capital

When you mentioned a data center will be supplying some heavy structures within our existing capacity, for what damage are we able to go up to from our existing capacity?

Sanjay Singhalia, CEO

Yes, typically in data structures what happens is The width of the web matters. So our, you know, like in the lines, our built-up lines are basically equipped to manufacture up to 2 meters of web width of any thickness. So typically, I would say that data center, most of the web would be in the range of 25 mm maximum. So we are equipped to do that, up to 2 meters width.

Devang Patil, Analyst — Soksmanesha Capital

Okay. And if you can update us on the subsidiary we floated for data center products, where are we on that? What is the timeline? JPEX and Resigno which can give us an idea on that?

Sanjay Singhalia, CEO

Yeah, the data center company which we floated the last quarter. This is related to one of the opportunities that has come our way. So it is still under discussions. It is one big large customer to whom we are talking to, to, you know, like make some DFM products for them, DFMA products for them. So it will take some time. I'm not sure, you know, whether that will metallize within this quarter or will get extended to the next quarter. So very difficult for me to comment at this moment.

Devang Patil, Analyst — Soksmanesha Capital

Okay. On the MCR region, given the curve related to environment, are we having any, facing any issues or delays with any of our projects?

Sanjay Singhalia, CEO

Yeah, that's a great question. Yes, NCR typically, post-Diwali, the grab starts and the delays in construction do happen. But the best part of pre-engineered buildings is the construction of pre-engineered buildings can carry on during this time if the civil works or the civil front of the customer is ready. So that doesn't affect us much, firstly, and the second is whatever orders we have in hand, the customers have, you know, like given us a go ahead to supply the material. So yes, the supply would continue, but maybe the disruption can happen in execution, which will go post the release of graph.

Devang Patil, Analyst — Soksmanesha Capital

Okay. And Gujarat, so the whole 50,000 capacity is coming up at one go?

Sanjay Singhalia, CEO

Yes, it is coming at the first phase. As I say, totally, the design capacity of that plant is 80,000 tons plus. But in the first phase, we are doing 50,000 tons.

Speaker 2

Okay. So that's all for my presentation.

Operator

Thank you. A reminder to all the participants, you may press star and want to ask questions. The next question is from the line of Current Covedia from EPAC Prefab Technologies. Please go ahead.

Speaker 2

So, my question is that

Sanjay Singhalia, CEO

as the new plant is commissioned last month, will we see a wrap-up in

Rohit Taparia, Analyst — Individual Investor

the production

Sanjay Singhalia, CEO

and manufacturing from next few quarters, and also I want to know about the margins, will it improve the margins because of that, and my next question is, can I...

Speaker 2

Expect H2 will be better than H1, these are my questions.

Sanjay Singhalia, CEO

So, the growth ramp of the new sandwich panel line, the ramp will definitely happen over the next five months of this financial year. And, you know, like our presence in the north market for sandwich panels has been over the last 17, 18 years. We, you know, like we know a lot of customers and we have served them in the past. So, I'm very much sure that the ramp up of this plant would be much better than it was in the south. South was a new market for us and it took some time. And as far as the margins are concerned, since, you know, during the ramp-up period, the idea is to increase the volume rather than building on the margins. So margins would be the same as it has been in the past. And what was your third question? I think you put a lot of questions together. My next question was, will be the H2 better than H1? I mean, much improvement will be seen or not? Definitely, yes. S2 will be better in terms of both in terms of revenue as well as in terms of margin. Revenue, because we already have a strong water book, and margins, because we have built the inventory to protect us from any steel price increase which may affect our margins.

Kush, Analyst — Nikolstor Brokers

Okay, thank you, sir.

Sanjay Singhalia, CEO

Happy dividing. Thank you.

Operator

Thank you. A reminder to all the participants, you may press star and run to ask questions. The next question is from the line of Unboli, DR, an individual investor.

Speaker 2

Please go ahead.

Speaker 7

How do you hedge against metal and steel prices? And also, there are many, some of your clients are putting up their own factories. Do you feel, do you face any competition from them as well? Hello.

Sanjay Singhalia, CEO

I didn't get the first part of your question properly.

Speaker 7

How do you hedge against steel prices?

Sanjay Singhalia, CEO

Against?

Speaker 7

How do we hedge against steel prices?

Sanjay Singhalia, CEO

Yeah. Yeah. Because that's the variation. Yeah.

Speaker 7

Some of your clients also putting up factories for PEVs. Do we face any competition?

Sanjay Singhalia, CEO

So, as far as, you know, clients putting their own facilities, I'm not aware of any of our clients putting up a PEV facility.

Kush, Analyst — Nikolstor Brokers

So, I won't be able to answer that.

Sanjay Singhalia, CEO

And on the steel hedging, you know, basically, we hedge in two to three ways. First is, Typically, our steel exposure, we cover almost 48% to 50% of our steel exposure. So, since, you know, the pending order book is spread over the next 8 to 9 months, we are covered for the next 3 to 4 months. So, that is one area where we cover almost 50% of our exposure of the steel. The second is the new orders that come into the system almost every week or every month. So, new orders are always against the existing pricing. And thirdly, the new orders are also coming as a natural hedging for us. So, these are the ways through which we, you know, protect ourselves. But especially in cases like, you know, it happened over the last three, four months, given by the war situation in the Middle East and other, you know, a few other, a few other incidences that happened in the steel industry related to the import duty protection for the steel industry, where in 11.5% of the safeguard duty was imposed on the steel. So, to take care of such situations, what we do is we go back to our customers and ask them for the price increase, and most of the time, especially in case of large orders, the customers are open to discussion because it's a transparent mechanism. So, you know, like most of the time, we have been able to get the price increase there.

Speaker 7

Also, if war persists, can we be able to maintain the same margin in that case?

Sanjay Singhalia, CEO

Sorry, I am not able to understand you.

Speaker 7

If Iran and Middle East war persists, will we be able to continue to maintain the margins, or will our margins keep eroding?

Sanjay Singhalia, CEO

See, our margin, if you swim water, one was 9.4% against the last-year average of 10.5%. Thank you. So there was an impact of 1% on the overall margin of the company. But again, we have recovered in the Q2, and it is 10.1%. So, you know, and also the steel prices, they have a limit to go up. The steel prices now, HR prices are almost 70,000 rupees a ton, and they are at their peak average. So I do not foresee any more increase in the steel prices to happen in the near future. Okay.

Speaker 2

Thank you, sir.

Sanjay Singhalia, CEO

Thank you.

Operator

Thank you.

Sanjay Singhalia, CEO

All the other questions, the next set of questions will be taken by Nikhil Gotraji, the executive director of the company.

Operator

The next question is from the line of Kush, from Nikolstor Brokers. Please go ahead.

Kush, Analyst — Nikolstor Brokers

Hi, good evening. So my question is on, so I'm, I joined a call later next, I'm not sure if it's already answered. So my question is on the growth, growth patterns for the FY27 and FY28. And do we see a higher capacity utilization in the H2 and FY28? It's basically on the standard panels, the new capacity which has been added last week.

Nikhil Botra, Other

Yeah. So, I think you joined late in the call. So, you know, in terms of growth, we are still maintaining, you know, our commitment of 1900 crores for this financial year. So, we have already, you know, in the H1, we have achieved revenue of 867 crores. So, balance, we are, you know, our order book is good to cater to that, you know, pending revenue that we need to get in the H2. And also, our next two years, looking at the demand that we have seen in terms of order intake and the CAPEX that is happening in the country, I think, you know, the growth of 25% to 30% for the next couple of years is still intact. That will be there. And the second part was on the sandwich panel utilization. Yes, the ramp-up has happened. You know, in Q1, our capacity utilization for Mamatu was around 35%, which rose to around 47-48% in Q2. And current order book is also above 500 square meters, you know, pending order book in hand for sandwich panels. So we can see the ramp up in H2, you know, and it will be much better in terms of capacity utilization compared to H1.

Kush, Analyst — Nikolstor Brokers

Uh, answer in the, uh, uh, this thing. Uh, we are already, I guess we are already at, uh, at, uh, uh, the, uh, category due to registration in the other segment is already at P10, if I'm not wrong. So, do we have any CAPEX plan going forward?

Nikhil Botra, Other

Yeah, our ramp-up is happening. See, our CAPEX, we have added a line in Mambatu, and our Gujarat plant is also under construction, and we will be starting the manufacturing in the last quarter of this financial year. So, our capacity ramp-up is happening. I mean, by the end of this financial year, we will have enough capacity to meet the growth demands for the next year as well. So, that plan is already in place and ramp-up is happening, the CAPEX is happening in that tune.

Kush, Analyst — Nikolstor Brokers

Okay. And in the PED segment, what is the next revenue we can generate?

Nikhil Botra, Other

Yeah, so overall, you know, with the CAPEX that we have done in this year and the pending CAPEX that we will be doing by March end, we can easily get a revenue of around 2800 to 3000 crores. And, you know, that's combining both the PEB as well as the sandwich panel capacities that we have.

Kush, Analyst — Nikolstor Brokers

Okay. Okay. Thank you very much.

Operator

Thank you. The next question is from the line of Dhirendra, Patro, from Spark TMS. Please go ahead.

Dhirendra Patro, Analyst — Spark TMS

Hello, sir. Am I audible? Yeah, I am audible. My question is largely on the demand scenario. So can you just elaborate a bit on the demand? All the players in the industry are going on adding capacity and as we have seen that because of the cost process, we also have increased our realizations. So, price increase we are passing on from 3Q onwards, like you said. So, based on this, are we seeing deferment of the new CAPEX from our customer's side? So, just wanted to understand the demand and supply scenario for Ziva Vista industry. So, can we elaborate on that?

Nikhil Botra, Other

Yeah, sure. You're right. You know, a lot of companies are expanding capacities in our industry, and that is because the demand is also growing. We are not seeing any delay in capex or any pushback because of steel price increase because the building cost is a small part of the overall capex that any company is planning to do. So we're not seeing a huge pushback or, you know, slowdown in that space because of price increase. The demand is good. We have a very strong pipeline. And all of the new sectors that we are doing and the logistics sector, the warehousing sector is always, you know, up and growing. The automobile sector is also there, construction, material, building, material sector. In the new age industries, like Sanjaji said, we are on the verge of doing the first order for data centers, PEB building, and we have been doing a lot of sandwich panel supply and installation in data centers. So those kind of demand are already there, and we are seeing huge inflows of big inquiries. So I don't see any challenge in terms of pipelines or order book as of now.

Dhirendra Patro, Analyst — Spark TMS

Okay. So, can you let us know the realization that we have made in 2Q in PEV side, and what is the increase that we have taken in 3Q?

Nikhil Botra, Other

So, in terms of realization, see, our EBITDA was 9.8% in last...

Dhirendra Patro, Analyst — Spark TMS

So, against 17-18% of steel price increase, So, 10% plus is the relation that we have increased.

Nikhil Botra, Other

No, I'm not talking about the realization. I'm talking about the margin percentage that we'll be maintaining. Realization, see, in the old orders, we have taken price increase from the customers. And the new orders that we are booking, we are, you know, passing on the pricing. So our gross margin, if you see, has reduced by around 2.3%. So gross margin is because of the drop mental price increase and this quarter and the next quarter we will try to maintain and, you know, push it back to the original level so that we can have the overall 10 to 10.5% margin EBITDA level. Got it.

Kush, Analyst — Nikolstor Brokers

Got it. I.K.

Operator

Thank you. A reminder to all the participants, you may press star and run to ask questions. The next question is from the line of Moksha from Motila, Oswal. Please go ahead.

Moksha, Analyst — Motilal Oswal

Hello. Good afternoon, sir. Congrats on the great set of numbers on revenue. My first question is, what is the customer concentration during the 1H, and how many new customers have we added during this period?

Nikhil Botra, Other

Yeah, good question. What's the exact number of how many customers we have added? If you see, you know, our order book stands at 1,420 odd crores, and our concentration is not very high, being the highest order, you know, that we received is around 10% of our total revenue of last financial year. So overall, you know, concentration is not very high. Our average order value is rapidly increasing every year. In PV. So overall, you know, this year we'll have an average order value of over 10 to 12 crores between that trades in PV segment. So, our concentration is not very high because, you know, we are product agnostic and industry agnostic, so we are operating in almost every industry and sector that we, you know, we can see growing. So, overall, we are not, you know, having a high concentration of few customers.

Moksha, Analyst — Motilal Oswal

Okay, and any new customers or any data of that? Any new customers? Yeah, means have we added any new customers in One Edge?

Nikhil Botra, Other

Yes, yes, we have added many. I think we have added more than... New customers, including the PEB as well as, you know, at least 20 to 30 new customers in sandwich panel, cold storage industry, and 40 to 50 generic customers. So, overall, more than 100 customers, we have added new. That is ever-growing. See, our concentration is not with new customers. So, it is not that we post a product and someone will buy. It is the need-based product, right? So anyone who is expanding will be sending us the inquiry and will be taking material from us. So for us, you know, getting new customers, adding new customers is very, very important. And overall, that has been our focus as well to penetrate in the industry in every region as well as in every sector. So we focus on expanding, you know, and more or less, if you see from our revenue, around 70% would be from new orders that we have received from new customers. Okay, thank you.

Sanjay Singhalia, CEO

I will just add to what Nikhil has said. Our top 5 customers contribute around 28-30% of our existing order book. So the concentration risk is not there. And in terms of new customers, typically over the last 3-4 years, our new customers account for 60% of the order book and 40% comes from the existing customers. For us, this ratio of 40% of the existing customers may look little low as compared to our PA group. But since, you know, like we have been growing at 40% plus in the last four years, so if you look at that factor, so our, you know, like repeat orders from the good clients is increasing year on year.

Moksha, Analyst — Motilal Oswal

Okay. Okay. Understood. Thank you.

Operator

Thank you. A reminder to all the participants, give a best star and one to ask questions. As there are no further questions from the participants, I would now hand the contents over to the management for closing comments. Over to you, sir.

Speaker 2

So, thank you, everyone, for joining the

Sanjay Singhalia, CEO

Investors Call today, and look forward to meeting you all virtually in the next call. Thank you.

Operator

Thank you. On behalf of Dam Capital Advisors Limited, that concludes this conference. Thank you for joining us, and you may now disconnect the line. Thank you.