Ladies and gentlemen, good day and welcome to the Q1 FY27 Earnings Conference Call for
Hy-Tech Engineers Limited. The management will be sharing the key operating and financial
highlights for the quarter ended June 30, 2026, followed by a question and answer session. Please
note that some of the statements made in today’s discussion may be forward-looking in nature
and may involve risk and uncertainties. Documents relating to the company’s financial
performance are available on the stock exchange and the company’s website. Trust you have
been able to go through the same.
As a reminder, all participant lines will be in the 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 “*” and then “0” on a touchtone
phone. Please note that this conference is being recorded. I now hand the conference over to Mr.
Hemant Mondkar, Chairman and Managing Director. Thank you, and over to you, sir.
Hemant Mondkar:
Thank you, Yusuf. Good morning and welcome, all of you. I am Hemant Mondkar, Chairman
and Managing Director of Hy-Tech Engineers. First of all, I would like to extend warm welcome
to all of you for the first earnings call as a listed company to discuss our Quarter 1 FY27
performance.
I want to begin by thanking you, all shareholders, investors, and stakeholders, for the
overwhelming response to our IPO and for the trust you have placed in Hy-Tech Engineers. We
have successfully listed on NSE and BSE on 1st of September, marking an important milestone
in our journey. While the listing represents a new chapter for the company, our focus remains
firmly on the fundamentals that have been built over more than four decades.
Before discussing the quarter, I would briefly tell you the history of Hy-Tech Engineers and the
business that we have built. Hy-Tech Engineers was established in December 1978, and we
started with a very small shop of 1,000 square feet with one lathe, one drill machine, one
hacksaw. And over the last four decades, we have now developed into a very strong engineering
company and manufacturing in hydraulic fittings, and we have extremely good, longstanding
relationship with almost all the leading OEMs in India as well as few of them from USA and
Europe.
We are specializing in hydraulic fittings. Now, these hydraulic fittings are normally used in all
the equipments like construction equipments, that is excavators, loaders, backhoe loaders, then
it is also used in tractors, it is also used in injection molding machines. So, majority of
equipments which are running on hydraulic systems, these fittings are consumed.
Initially, these fittings were imported from Germany and other parts of Europe, like Italy and in
India, we started this manufacturing this as an import substitute, so that gives us a tremendous
amount of impetus for increasing the business, and it was an import substitute item, and that’s
the reason why Hy-Tech is always enjoying a major share of domestic business.
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These components in the equipment are relatively very small, maybe 1% or 2% of the equipment
cost will be our fittings. So, all OEMs say they are C-category items, but I always say that C
stands for low-cost, at the same time, C stands for critical. These hydraulic fittings are extremely
critical in nature, and you should not have any leakages or any problems. And it has to withstand
very high pressures, so the criticality of manufacturing of this fitting is very, very important, and
that is the reason we stand out in the market.
Today, we have a portfolio of almost 11,000 SKUs, different, and different types of fittings we
are manufacturing. Quite a few are DIN standard fittings, which are which are as per German
standards, then we have SAE, JIC standard, which are American standards, and then we have
ORFS, that is O-ring Face Seal fittings, which are required in the tractor element. Majority of
them are standard, and 80% of our business is for standard fittings, and 20% are specifically
made for OEMs.
Key strength of our business is our manufacturing facility, which is ranging right from forging
till final plating, and we don't have to depend anyone outside for manufacturing of fittings. So,
it's an end-to-end integrated manufacturing facility that gives us flexibility of responding to our
customers in time, and even our development time is hardly two weeks.
Within two weeks, we can develop a new fitting and give it to our customers. This response is
also helping us in getting more and more OEMs. Only thing what we purchase today is the steel
procurement, which we are buying from majority of mills directly. We are not buying it from
the trading market, and most of it is available domestically. We don't have to import any material.
Our business got developed through patronage of OEMs. I would not like to name the
companies, because I am not supposed to, but all the major customers manufacturing tractors,
excavators, injection molding machines, all of them are our customers, and we are a leading
company in Indian market, and our turnover is far, far higher than our competitors. Our next
competitor is less than half our turnover. So, we are enjoying this leading position in the market.
We have around 170 direct customers and more than seven active distributors, and we have got
a presence across 11 countries for the export. Majority of that is in USA, and second number is
Europe. And some part, we are supplying also to Dubai, very limited quantity, but that is the
business which can grow over a period of time.
The US business we started somewhere in 2012, and now, we have touched almost about 25%
of our business is going to USA. And around 7% to 8% to Europe, and there is a tremendous
amount of scope for increasing this business, especially in Europe, because Europe, there are no
tariff restrictions like what we have in USA because of today's President.
But in Europe, we have got plenty of chance to grow. The cost of manufacturing in Europe is
very high, and we are almost about 25% cheaper on landed prices to Europe. So, that gives us a
benefit, and a lot of people are coming from Europe to India, and they are coming to us.
Second advantage what we have is the domestic OEMs what we have, they also have plants
abroad. For instance, I'll give you an example. A company called John Deere, they have plants,
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almost 8 to 10 plants in Europe and about 47 plants in USA. And this business is going to be the
business of our future. For the next 2-3 years, this business is rapidly going to grow up.
We have totally six manufacturing facilities. We have got two in Shirwal, which is very close to
Pune. We have got one in Pithampur, one in Nashik, one in Thane -- two in Pithampur, one in
Nashik, and one in Thane. That is our original.
Today, we are manufacturing around 35 lakhs of fittings every month, and the proceeds that we
have got now from IPO, we are going to go to 70 lakhs per month. We are going to double the
turnover in a period of next three years' time. This is our plan. This is our growth plan.
Second important point is that we have got certified now with IRIS, which is a railway
certification, so we are now eligible to enter into railway business. We are also registered with
DRDO, that is a defence organization, so we have now chance to enter into defence as well. And
we have also registered ourselves in Cochin Shipyard and Mazagon Dock. Now, this also is
going to give us a totally new business, which will add to the further progress and the growth of
the company.
Recently, we have participated in bauma, and the response was tremendous. Few OEMs who
are not working with us, they are also very keen to now start working with us. So, even domestic
business also I'm expecting a growth of about 15% to 20%. Although the business in India is
growing at about 7%, 8%, we will grow at 20%, because we will be getting more SOBs, share
of business, from the existing customers, as well as we'll add few more OEMs.
As on today, our OEM business is to the tune of 70% to 80%, and that is going to remain the
same. Distributors we have in India, we have got four distributors: one in Ahmedabad, one in
Bangalore, one in Delhi. So, these and one in Pune. So, these distributors are supplying our
standard fittings in the market, and the business of that is only about to the extent of about 10%
of our total business.
But that is -- there is a possibility of that business also growing by around 10 -- 15%, 20%, 30%.
So, that will also add to our progress. New OEMs which are now we got in bauma are Tata
Hitachi, it's a major OEM, and then Sany, a Chinese manufacturer, and then there was one more,
is Fluidconnecto.
He is also in India in Bangalore, but they have a plant in Italy, so they are also very keen. So,
that way, the amount of business that we are likely to get, and it is in the pipeline, is quite a lot,
and we expect a minimum of 20% growth this year and maybe a little more than that in the
further two years, because this year will go in capturing the new OEMs and capturing the new
business.
Coming to our financial performance, which Sunil will talk to you, but Sunil, can you take this
off? Still, I have to talk something else. Just a minute. Now, let's talk about the growth strategy.
I have already told you the business is coming. Now, from business point of view, the
manufacturing of 70 lakhs from 35 lakhs of fittings, we have to have additional plants.
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Existing plant gives us around 35% to 40% infrastructure available with us, so we can go up to
from 200 to 300, there is no problem. We have the infrastructure. Additional of these object
machines will give us that business. Over and above that, for future expansion, we are going in
for 6.5 acres of land.
It has been approved in the board now, and we will be taking this land within a period of next 3
months to 4 months’ time. And then since it's a long time to get the approvals from the
government, and then building and construction will take about a year, so we'll have to be ready
within two years, this plant will be ready, but we'll have to start from today.
So, we are going in for that additional land now because we have confidence in our growth, so
we -- that's the reason why taking up this step. So, there also, we have decided to go for more
automation, and it will be automatic machines more, and the labor part, we will try to keep as
little as possible. And the productivity will be almost two times the current plants.
That will help us to churn out more and more fittings. As I told you that there are 47 plants of
John Deere in USA. We have been approved in all their plants, and business from about 6 plants
to 7 plants have already started coming to us. They are insisting us to supply all the fittings from
USA. So, we are therefore opening a company in USA, and that is also being sanctioned in the
board today, and we are on the on the way to form that company.
As you all know, my son, my elder son, is in USA, so he will be taking care of that business. He
is taking care of all marketing business in USA, and because of his presence in USA, USA
business is going to be our major focus for next 2 years-3 years. We have been working in US
for last 6 years, 7 years, but now they want us to put up a warehouse there, and an entity of HyTech, 100% subsidiary, will be set up there, and it will be -- that business will start.
As far as technology upgradation is concerned, it's very interesting, I want to share with you,
that we have purchased one rotary transfer machine, which churns out around 70,000 pieces per
month. And it's a single, completely automatic machine with one person operating the machine,
and this is going to give us tremendous amount of speed of manufacturing, and this is something
which we have already got two machines with us, and we are going to buy four more machines
in the near future.
So, we are constantly upgrading our technology to improve our productivity, and this is going
on for last six, seven, eight years, and technologically, Hy-Tech is a very, very competent
manufacturing organization. I think whatever questions you have, we will work on questionanswer session, but I will now hand over to Sunil Satwani for the figures of first quarter, and he
will explain to you about the financials. Thank you very much for listening to me, friends.
Sunil Satwani:
Thank you, Hemant sir. Good morning, everyone. I am Sunil Satwani, Chief Financial Officer
of Hy-Tech Engineers Limited. It is a pleasure to welcome all of you to Hy-Tech Engineers’
first earnings call following our listing. I'll take you through the financial performance for Q1
FY27, followed by a brief update on our capital position and priorities for the year ahead.
We delivered revenue from the operations of INR430 million in Q1 FY27, which is representing
a 13% Y-o-Y increase compared to the INR380 million in Q1 FY26. EBITDA, if I'm coming to
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the EBITDA part, so EBITDA stood at INR84 million compared to the INR82 million in the
corresponding quarter of the last year. EBITDA margin, which is 19.6% for the current year or
the current quarter compared to 21.5% for the previous year of the same quarter.
At the profit level, PBT, profit before tax, increased 9% year-on-year to INR61 million, while
PAT has been increased 11% Y-o-Y to INR46 million compared with INR41 million in Q1
FY26. So, our PAT margin stood at 10.7%. The quarter reflects continued revenue growth while
maintaining healthy profitability.
While EBITDA margins were lower compared with the corresponding period of the last year,
but we remain focused on improving operating efficiency and productivity and cost absorption
as volumes scale up. Following our IPO, the as sir said, company has raised INR135.7 crores,
including INR60 crores through the fresh issue.
The fresh issue proceeds are being utilized towards the identified objectives, including the
capital expenditure, repayment of our borrowings, and general corporate purpose. This IPO has
strengthened our balance sheet and provide us with greater financial flexibility to support the
next phase of our growth, and our approach towards capital allocation will remain disciplined.
As sir has already said in the previous year, we are constantly focusing on increasing our
capacity. So, we intend to deploy capital towards projects that strengthen our manufacturing
capabilities, improve productivity, and create additional capacity in line with customer demand.
We will continue to maintain a balance between growth investment, financial discipline, and
efficient utilization of our capital.
From a financial perspective, our priorities for FY27 are centered around these three areas: first,
driving revenue growth through higher utilization of our existing assets and increasing business
from existing and new customers; second, improving our operating efficiency and productivity,
particularly through automation.
As sir said, that we had procured rotary transfer machines and we are going to procure more
similar kind of machines to be -- to make more automation and get more productivity and the
process optimization, which should support better absorption of our fixed costs as volume
increases; and third, maintaining disciplined capital allocation and healthy balance sheet while
funding our growth initiatives.
Overall, we believe we have entered FY27 with a strong operating platform, a strengthened
balance sheet, and a multiple avenues for the growth. As a newly listed company, our objective
is to build on this foundation and deliver consistent, profitable, and sustainable growth for the
coming years.
With that, I would like to thank all of you once again for joining our first earnings call. We are
now happy to take the questions. Thank you.
Moderator:
Thank you very much, sir. We will now begin the question-and-answer session. First question
is from the line of Srinivasareddy from Yellow Investments. Please go ahead.
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Srinivasareddy:
Yes, sir. Very good morning. Am I audible?
Hemant Mondkar:
Yes. Good morning.
Srinivasareddy:
Yes, sir. In the PPT presentation itself, slide 5 shows raw material cost fell as a share of sales,
while employee cost rose 28.5%. What really cut the margin? And what FY27 margin should be
modeled?
Hemant Mondkar:
Can you repeat the question, Reddy?
Srinivasareddy:
Sir, one final thing is, what FY27 margin should be modeled, what we are expecting?
Hemant Mondkar:
Asking about?
Srinivasareddy:
About margin, sir.
Hemant Mondkar:
You are talking about the margin?
Srinivasareddy:
Yes, sir.
Sunil Satwani:
Yes, sir. EBITDA margin.
Hemant Mondkar:
Yes. Either EBITDA margin or I can tell you even the PAT, we can grow by about 25% to 30%
on increase in the PAT in absolute terms. EBITDA margin will be maintained at about 24% to
25%.
Srinivasareddy:
Okay, sir. And one more thing.
Hemant Mondkar:
See, I tell you there is one thing which I wanted to tell you to support whatever my CFO has told
you. The first quarter, there were two problems as far as the performance is concerned. One was
that if you remember, all of you investors, in the month of February, March, April, because of
war, all the prices went up. So, input costs have gone up, and we requested all our OEMs for the
price revision.
And that price revision we got it effective 1st of April, but we will be getting it in the second
quarter. So, that profit, which is now lying with OEM, they will transfer it to us, and that will
come in the second quarter. So, this is one important point which everybody has to note. And
that is the reason why the performance of quarter-on-quarter performance has been shown only
to the extent of 10%.
Otherwise, we are expecting definitely 20% growth, around 20% growth in this year. So, I think
this is -- and EBITDA margin will be totally maintained, because we got all the price revision
and compensation from the customers for whatever input costs which have gone up. Reddy, am
I okay? Have I answered your question?
Srinivasareddy:
Yes, sir. Fantastic, sir. And one final question, sir. Mazagon Dock Ship and Cochin Shipyard,
on this, in the annual report, we have mentioned that we have got the approvals, but the investors
made a drop on them. Are they currently our customers, and what they have earned so far?
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Hemant Mondkar:
No, no, no. It has just been it has just been started. Now, we have been registered now. Whenever
now they float tenders, we will start getting the tenders, and then we will have to bid the tenders.
This process will continue now.
Srinivasareddy:
When do we expect our first revenue from them, sir?
Hemant Mondkar:
Maybe after about five, six months, I can't guarantee anything. Because this is government
people, we don’t know. But registration itself was quite tough, which has taken about a year or
so. So, registration we have gone through, and now the business will come. But that business is
not going to much matter for our growth, as I told you in my speech.
Srinivasareddy:
Okay, sir. Sir, those products are the heavy margin compared to our regular products, or it's a bit
in the same…
Hemant Mondkar:
Pardon?
Srinivasareddy:
Those products are in the higher margin range, or like they are in the regular margin?
Hemant Mondkar:
No, they are in the regular margin, but see, if you see, we are doing around 30% of export
business where we are getting better margins, almost about 10% extra margins we are getting.
And with this rupee going down against the dollar, that advantage we are getting.
Srinivasareddy:
Yes, sir. Fantastic. That's all from my side. Thank you, sir. Thank you very much.
Hemant Mondkar:
Otherwise, normal engineering having 23%, 24% EBITDA is difficult. In normal engineering
company, you get an EBITDA of about 15%, 16%, but we are always at about 22%, 23% last
year, and this year, it is because our operations are very efficient. And just to tell you, the Kaizen,
if you have heard the word Kaizen implementation or Japanese manufacturing techniques, that
is the base and foundation for Hy-Tech.
Srinivasareddy:
Okay, sir. Thank you sir.
Moderator:
Thank you. Next question is from the line of Rahil Dasani from MAPL. Please go ahead.
Rahil Dasani:
Yes. Hi. Am I audible?
Moderator:
Yes. Please go ahead.
Rahil Dasani:
Yes. First of all, sir, good afternoon and thanks for the opportunity. Your brief was really good
to hear, very helpful. Sir, my first question is if you can explain our products and their criticality
for our customers in a much better way, and also how difficult are they to make accuracy-wise
for us? If you can start with this, that would be helpful, sir. I would like to understand our
products and our customers overall.
Hemant Mondkar:
It is very difficult to probably explain this to you over a phone, but I will try to. See, now, if you
go If have you ever seen the backhoe loader on the road? Have you seen that?
Rahil Dasani:
Yes.
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Hemant Mondkar:
That backhoe loader, the movement, entire movement of digging and collecting the sand and
everything is being done by the shovel which moves up and down.
And these movements are totally done through hydraulic system. Now, that equipment has got
a power pack in that, and a power pack is nothing but a motor, hydraulic motor, hydraulic pump,
and then it has got some valves, and then there are pipelines. And if you see, all these pipelines
are coming right up to the end.
All over backhoe loader, you will find all those lines. Now, if you go to our DRHP also, we have
explained this. So, all these connectors are connecting all the pipelines, and those pipelines are
subject to a very high pressure of 300 bar. 300 bar means 300 kilogram per square centimeter
and normal pipeline which you have in the house, it is at 1 bar. So, 300 bar is a very, very high
pressure.
That joint has to sustain that high pressure, and to sustaining that high pressure, the quality of
the fitting has to be good, the joints have to be accurate, machining has to be precision, and
sealing elements also have to be taken care of. That is why this item is not a normal engineering
machined item. It is an item which is very critical in nature.
It has got some standards for withstanding those pressures, and what we have to guarantee to
our customers is leak-proofness of this fitting and withstanding to such high pressures. This is
very important, and that's the reason why not many people are able to meet those requirements
of the customers. That's why we play an important role. Have you understood little bit?
Rahil Dasani:
Yes, sir. That was very clear.
Hemant Mondkar:
Thank you very much. Otherwise, it is very difficult, but you are most welcome to visit our plant
and look at what we are manufacturing. We can share with you all the types of products that we
are making. But let me tell you one thing: all the variety of fittings which we manufacture,
nobody else in India manufactures this. That much I can tell you. Right.
Rahil Dasani:
Got it. And when we say that we have 70%, 75% of our business is through OEMs, what do we
mean by OEMs? Do we mean the hydraulic system manufacturers, or do we mean the end
automotive or construction machinery manufacturers?
Hemant Mondkar:
No. I will tell you customers who are manufacturing excavators, for example, Tata Hitachi, then
you can go to JCB, then you can go to Mahindra & Mahindra. So, all these people are
manufacturing those equipments, which are normally called as earth-moving equipment, which
are required for infrastructure.
Then you can have road-building machinery which is being manufactured by Ammann in
Gujarat. So, many people are there. Road building, Wirtgen is there, if you have heard the name
of Wirtgen. So, these road-building machinery also has got a lot of hydraulics. Then injection
moulding machines on which plastic items are made, they are also completely hydraulics.
So, application is very, very wide. So, these are the OEMs. All these manufacturers of
equipments are the OEMs of Hy-Tech.
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Rahil Dasani:
Okay. Got it.
Hemant Mondkar:
Original OEM stands for original equipment manufacturer.
Rahil Dasani:
Yes. So, we basically sell to the end consumers being JCB, Tata, etcetera. Got it.
Hemant Mondkar:
That's right. And advantage of that is because they have a definite number of equipments being
manufactured every month, so we keep on getting the repeat orders.
Rahil Dasani:
Fair enough, yes.
Hemant Mondkar:
And it is a B2B business.
Rahil Dasani:
Got it. Okay. And sir, since you said that we -- in your introductory note, you said that we serve
already all the major OEM customers, so what sort of wallet share do we have with them? For
example, if they are procuring INR100 of hydraulic fittings, are we the sole vendors for them,
or how does it work?
Hemant Mondkar:
Not all. It ranges. Few of the customers who are working with us for last 40 years now, we have
still a customer, which is called Windsor Machines, who is 48 years old since we started. He's
the first customer. He is still there. He's buying 100% from us.
Rahil Dasani:
Okay.
Hemant Mondkar:
Now, for example, John Deere is buying 100% from us. Few of the customers are buying 50%
from us. Few of the customers are buying 70%. Few of the new customers are buying only 10%
from us, but then they are increasing their SOB with us. You understand?
Rahil Dasani:
Got it. Yes. Got it.
Hemant Mondkar:
So, year-on-year, roughly, we are adding about 2 to 3 OEs. And then they start with 0%, and
they go up to 50%, 60%. But what we have done is, from a business point of view, we don't
depend purely on one single source. We don't have a single customer who is having more than
15% business with us.
Rahil Dasani:
Makes sense. Got it.
Hemant Mondkar:
So -- because we are spreading the business all over, because anything can happen to anybody.
Rahil Dasani:
Understood. Got it. And since you said that whole 100% of the SOB in some cases is not with
us, so who would you say are the key competitors in this? Are these the global guys, like Parker,
Gates, and Chinese, or is it the domestic competition?
Hemant Mondkar:
There is no person from China here. In fact, Chinese manufacturers -- equipment manufacturers,
are also buying fittings from us.
Rahil Dasani:
Okay.
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Hemant Mondkar:
So, there is no Chinese competition. Parker competition is not there, but Parker is now bringing
in material for the projects -- infrastructure projects, which is being handed over to or allotted to
foreign companies, they are buying Parker fittings and bringing to India.
Rahil Dasani:
Okay.
Hemant Mondkar:
You understand? But locally, because the price of Parker fittings is exactly double our price.
Rahil Dasani:
Okay. Wow.
Hemant Mondkar:
So, price competition Parker is not there with us at all. As far as domestic competition is there,
now, as I told you in my speech, my second competitor, domestic competitor, is less than half
the turnover what Hy-Tech has got.
Rahil Dasani:
Okay.
Hemant Mondkar:
And over a period of time, now last this 40 years, 45 years, we have built up a very good
relationship with OEMs. In fact, today, if any new MNC comes in India, and if they ask whom
should we go for fittings, everybody gives a pointer to Hy-Tech. This is the name we have built
up. This is the image we have built.
Rahil Dasani:
Got it. And if you could…
Moderator:
Sorry to interrupt, Mr. Dasani. May we please request you to rejoin the queue, sir? Thank you.
Rahil Dasani:
Okay. Yes.
Moderator:
A reminder to the participants, please limit yourself to two questions only. Should you have a
follow-up question, please rejoin the queue.
Next question is from the line of Gaurav Shukla from Finvestors. Please go ahead.
Gaurav Shukla:
Am I audible, sir?
Hemant Mondkar:
Yes, Mr. Shukla. Go ahead.
Moderator:
Yes. Please go ahead.
Gaurav Shukla:
Sir, what is the revenue growth guidance for FY27 and FY28?
Hemant Mondkar:
As I told you, we'll be growing at about 20% minimum year-on-year. And bottom line will grow
at minimum at 25% to 30%. PAT will keep on going up by about 25% to 30%, top line will
grow up by 20%.
Gaurav Shukla:
Okay, sir. And currently, how much order book, sir?
Hemant Mondkar:
Order?
Gaurav Shukla:
Order book, how much you are holding?
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Hemant Mondkar:
Order book is more or less, more or less, we have got schedules for annual schedules from all
OEMs. So, we don't have an order book. They give us a contract order with price, and they keep
on sending us schedules. So, that way, if you see, we are booked.
Gaurav Shukla:
Okay, sir. And sir, what is the current utilization level of forging and hydraulic fitting of your
plant?
Hemant Mondkar:
Currently, we are utilizing -- I'll tell you, we are utilizing it about 60%-70%. And we always
keep extra capacity, the reason is that when new OE comes with about 10 crores, 15 crores order,
he asks us, "Do you have a capacity?" So, we have to show the capacity to him. And -- but one
thing there, let me tell you, share with you, although we have installed capacity, our operating
expenses are in line with whatever we are business we are doing.
But capital investment, we always have a little more to the tune of 20% to 25%. This is the
philosophy we are following in Hy-Tech. So, any new customer comes, we have a capacity
available to him to be allotted to him.
Gaurav Shukla:
Okay, sir. So, in this year, nil capex plan, if I understand correctly.
Hemant Mondkar:
What?
Gaurav Shukla:
Next any capacity expansion plan in this financial year or FY28?
Hemant Mondkar:
I am not able to answer. Please, will you reword your question?
Gaurav Shukla:
I am asking about capex plan, capacity expansion plan.
Hemant Mondkar:
We have got INR30 crores of object now. We will be implementing that.
Gaurav Shukla:
And -- okay, sir.
Hemant Mondkar:
Capex, that's what I'm saying. I'm saying that we have got INR30 crores allotted for capex this
year, and we'll be implementing that within a period of one year.
Gaurav Shukla:
Okay.
Hemant Mondkar:
Another…
Gaurav Shukla:
Sir, one simple thing I want to ask, sir. As in beginning comment, CFO has covered that margin
is pressurized due to price hike of raw material. Sir, how you compensate the raw material price
hike as geopolitical issues?
Hemant Mondkar:
Customers are paying us the increase.
Gaurav Shukla:
Okay.
Hemant Mondkar:
Customers have already given.
Gaurav Shukla:
Okay, sir.
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Hemant Mondkar:
So, this will reflect in the second quarter, as I told you.
Gaurav Shukla:
Okay, sir. Okay. Very good, sir. Thank you, sir. This is for all. This time I’ll get back in the
queue.
Hemant Mondkar:
Right, Gaurav.
Gaurav Shukla:
All the best, sir.
Hemant Mondkar:
Thank you.
Moderator:
Next question is from the line of Rajiv Mehta from YES Securities. Please go ahead.
Rajiv Mehta:
Yes. Hi. Good morning. I just wanted to…
Hemant Mondkar:
Good morning, Rajiv. Good morning.
Rajiv Mehta:
Yes. So, I just want to understand the diversification from the end-industry point of view. If you
can, firstly, give us what is the revenue breakup currently from different industry-wise,
application-wise, where your product is going?
And whether can we have more opportunities within the same industry, as well as are we looking
at more other manufacturing side of the story, multiple defence, maybe aerospace, or maybe
some other industries where our products can actually go into, and hence, we can keep growing
at 25%-30% for multiple years? Is that something that you aspire to do?
Hemant Mondkar:
Rajiv, its answer is like this, that in the present circumstances, we will grow by about 20%, as I
told you, and we have already now registered with Railways with IRIS certification and also
DRDO for defence. So, these business is going to come over a period of time, but it takes a long
time to get this. But current revenue, as I told you, 20% growth is irrespective of this, and this
will be additional growth. Okay?
Rajiv Mehta:
Correct. But when you say 20%-25% growth, you are already building the revenue coming from
the capex, right?
Hemant Mondkar:
You asked me about aviation. As of today, we are not thinking of aviation, because there are
tremendous amount of certifications and approvals are required. But over a period of time, we'll
certainly look into that. But Railways and Defence will start, but it will not start so fast, because
it takes a long time.
Rajiv Mehta:
Correct. It takes its own time. Correct. Yes.
Hemant Mondkar:
So, but maybe down the line to -- 1 year, 2 years down the line, this business will start, but that
will be over and above what I'm telling you about 20%. Now, let me share with you something
for all the investors. The total requirement of this fittings all over the world is 40,000 crores.
How much? 40,000 crores.
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Out of that, 20,000 crores fittings are consumed in USA, 10,000 crores of fittings are consumed
in Europe, and around 2,000 crores are consumed in India. So, we are at about 10% of Indian
market, and balance 8,000 are spread over other countries.
Now, we have got a very good positioning in USA as well as Europe, where the major chunk of
business is there. So, this existing product existing product itself has a tremendous potential to
grow. Do you understand, Rajiv?
Rajiv Mehta:
Yes,
Hemant Mondkar:
Over and above that, we'll go for this for spreading the market. But this is what we are going to
do. So, there is no problem at all for the growth that we plan.
Rajiv Mehta:
And how should we look at your current capex, and I think the few announcements that you
have done in USA and -- so, is that -- what kind of -- how many years of revenue growth
opportunity you're building right now with all these -- with the current capex that you have
planned and with the announcements you've made?
Hemant Mondkar:
We are looking for -- with current capex of INR30 crores, which you're taking it from IPO, this
will take us -- this will add another INR100 crores to our business.
Rajiv Mehta:
Understood.
Hemant Mondkar:
But one thing, Rajiv, let me tell you. Every year, 50% of our profit has been invested in capex
for last 25 years. So, we keep on doing that.
Rajiv Mehta:
And we have a continuous opportunity of continuing with that, right? So, which means that we
have a 25%, 30% growth for multiple years?
Hemant Mondkar:
Yes, yes, multiple years, for next 10 years.
Rajiv Mehta:
No, got that, sir. Thanks. Maybe I'll come back in the queue. Yes, thanks.
Hemant Mondkar:
Okay. Okay.
Moderator:
Thank you. Next question is from the line of Arvind Arora from A Square Capital. Please go
ahead.
Arvind Arora:
Hi, thank you for the opportunity, and congratulations, sir, for a fantastic listing and good set of
numbers. So, sir, my question is more on the data center opportunity, the device that you prepare
and it seems like you can also enter into a data center segment also. So, is there any…
Hemant Mondkar:
You’re right.
Arvind Arora:
Discussion that is ongoing, if you can throw some color on that part, sir?
Hemant Mondkar:
This is very, very good question you have asked. These data centers, they require stainless steel
fittings. And there is a tremendous scope for this stainless steel fittings. Last two years, we have
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already developed the range which is required for data centers, but that is also applicable to oil
and gas. Similar fittings are required in data center in stainless steel, and we have just started
manufacturing these fittings, and we'll be entering into this data center opportunity over a period
of next one year's time positively.
Arvind Arora:
Yes, sir. Are you saying…
Hemant Mondkar:
And it's a very fast-growing business, and we will not miss the opportunity.
Arvind Arora:
So, sir, any discussion is ongoing with any customer where there is a specification that we have
received and we are working on something like that?
Hemant Mondkar:
For data center, no, not at the moment, nothing at the moment. As I told you, the product has
been established only recently. Now, we'll be catching up these customers and talking to them,
and maybe this will come in somewhere around '28, '29.
Arvind Arora:
Understood. And how much we spend on R&D work, sir?
Hemant Mondkar:
R&D, we are spending around 1% of our revenue.
Arvind Arora:
Okay. Only 1%. Any plan to increase the spend?
Hemant Mondkar:
See, I'll tell you one thing, let me explain this to you, because we don't have a product which is
non-standard. These are all standard products what we are manufacturing as per the standards
established all over the world.
And R&D, what we have to do is, now, for example, stainless steel fittings, as I told you, we
developed it in last one and a half, two years. This is a new development where we have spent
money. So, we don't have to spend too much of money on R&D. 1% is more than sufficient for
us. Unless we go into some additional items like valves, and -- which is also we are thinking
now, but I am not committing to you anything. But we are going to upgrade our product range
with higher value-added products like valves, which are also in line with hydraulics.
Arvind Arora:
Understood.
Hemant Mondkar:
Okay. Thanks.
Arvind Arora:
Understood. Sir, you are mentioning -- that our revenue growth would be in line with 20%, and
the PAT growth would be in 30%. So, this clearly shows that we have operating leverage. So,
sir, can you please demonstrate -- so after this year also we will continue to get this operating
leverage for FY28 also?
Hemant Mondkar:
Yes, yes, yes. I think you wait for our second quarter now.
Arvind Arora:
Okay, sir. Okay, that's all from my side. Thank you, sir, and more power to you. Thank you.
Hemant Mondkar:
Thank you.
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Moderator:
Thank you. Next question is from the line of Shubham Gupta from Prospera Wealth Private
Limited. Please go ahead.
Hemant Mondkar:
Yes, Shubham.
Shubham Gupta:
Hello. Hi, sir.
Hemant Mondkar:
Yes, Shubham, go ahead.
Shubham Gupta:
Sir, can you tell more about the U.S. customers, and who are the customers that are lined up,
and what is the total revenue potential that you see from the U.S.?
Hemant Mondkar:
I have already talked about that. 25% of our revenue is from U.S.
Shubham Gupta:
Like, in future?
Hemant Mondkar:
In future, this will continue to be 25% as our turnover goes up, because we don't want to spend
-- we don't want to increase that. As I told you, the philosophy and policy of Hy-Tech is to spread
the business all over. What happens if the Trump relationship changes? We can't afford to have
too much of business from USA. You understand?
Shubham Gupta:
Okay, okay, okay.
Hemant Mondkar:
So, we are focusing on Europe, we are focusing on -- now, for example, I'll share with you,
yesterday, there was one customer from Australia. So, he also promised, so we have to spread
in different countries. With the geopolitical situations that we are facing today, we cannot depend
on one single country, right?
Shubham Gupta:
Right.
Hemant Mondkar:
Are you able to appreciate that?
Shubham Gupta:
Yes, yes. Yes, sir, yes.
Hemant Mondkar:
Yes, yes, yes.
Shubham Gupta:
So, sir, in next one or two years, in terms of export, how will our revenue will grow as a
percentage of overall revenue, how will our export...
Hemant Mondkar:
I'll tell you another -- we have already prepared a plan for five years, and in five years, we have
decided to go for 50% export and 50% domestic. That is the plan. Today, we are at about 30%
export. So, year-on-year, we will keep on increasing the percentage of export, but not beyond
50%, and that also will be spread with different countries.
Shubham Gupta:
Okay, sir. Okay.
Hemant Mondkar:
Now you understand what I'm saying, with 25% export to USA, and balance 25% with Europe,
with Australia, with New Zealand, with Dubai. So, we'll spread that business so that we don't
depend on a single country.
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Shubham Gupta:
Got it. Got it, sir.
Hemant Mondkar:
Right?
Shubham Gupta:
Got it.
Hemant Mondkar:
Right, okay.
Shubham Gupta:
And sir, who are our current clients in U.S. side, U.S. and in Europe…
Hemant Mondkar:
I cannot tell you that. I cannot tell you that. I cannot tell you that.
Shubham Gupta:
Okay, sir. Okay. Thank you. Thank you, sir.
Hemant Mondkar:
Right, right.
Moderator:
Thank you. Next question is from the line of Subhanu Bangal from 3 Head Capital. Please go
ahead.
Subhanu Bangal:
Yes. Thank you for opportunity. Hope I'm audible, sir. Sir, as per our PPT, our current hydraulic
fitting capacity around 483 lakhs pieces per annum, and captive forging capacity around 3,120
metric ton per annum. But my question is what will be our future capacity after this expansion?
Hemant Mondkar:
From 35 lakhs, we'll go to 50 lakhs.
Subhanu Bangal:
Sorry, can you repeat?
Hemant Mondkar:
You can -- see, today, we are at about INR200 crores, right? With this money that we have got
now from IPO, INR30 crores we invest, we will go to around INR300 crores, INR300 crores to
INR320 crores.
Subhanu Bangal:
No, sir, I am talking about total capacity expansion, what will be our total capacity after this…
Hemant Mondkar:
I'm telling you, now you multiply. Now, if it is 50%, the quantity also will go up by 50%.
Subhanu Bangal:
Got it.
Hemant Mondkar:
Both tonnage and quantity will go up, 35 lakhs, it will go to 50 lakhs, and the tonnage will also
go up by 1.5 times.
Subhanu Bangal:
Okay, got it. Thank you. And my next question on our EBITDA margin. Last two years, we are
maintaining around 22% around EBITDA margin. And as you mentioned in the previous
conversation, you mentioned this year you are targeting around 24% to 25% EBITDA margin.
Am I right?
Hemant Mondkar:
Yes. You're right. Year-on-year, it will go up by 1%. There are two reasons for it, because as I
told you, we'll be increasing the export that will give us a better price. And second point is that
we have implemented all Kaizen activities, so our operational efficiencies will keep on going
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up. So, we are planning to increase our EBITDA margin year-on-year by about 0.5%, 1%, so
that we'll touch 25%. Okay? For a period of two, three years.
Subhanu Bangal:
Okay. And my last question on, sir, fixed assets. If I see on the balance sheet, our fixed asset
dropped around INR6 crores year-on-year. What happened, sir, FY26?
Hemant Mondkar:
What?
Subhanu Bangal:
Fixed asset dropped around INR6 crores. If I see again, property, plant, and equipment, FY25
March -- as on FY25 March, our property, plant, equipment was INR641 million, and as on
FY26, this was around INR594 million. Why this drop, sir?
Hemant Mondkar:
Where have we dropped? Which year?
Sunil Satwani:
It is not dropped. It is not dropped, Subhanu. Which year you are comparing with?
Subhanu Bangal:
I am comparing with FY26.
Sunil Satwani:
FY26 is INR594.95 million PPE, right?
Subhanu Bangal:
Yes. Property, plant, and equipment, yes.
Sunil Satwani:
And as of June, you are comparing with June ‘26?
Subhanu Bangal:
No. I am comparing with FY25.
Sunil Satwani:
FY25, it was INR595, which is remained the same, INR594.95, which is because of the
depreciation effect, slightly low, which is at the same level.
Subhanu Bangal:
I am seeing that -- sorry, no. FY25 and was INR641 million.
Sunil Satwani:
Have you also considered the CWIP, Capital Work-in-Progress, with the same? As sir said, we
are -- see, the assets is already is considering the depreciation is also, plus, in addition to that,
we are already giving -- we are adding the capacity which are coming under the CWIP, you need
to also consider the same. So, our capacity -- our PPE is getting increased year-on-year basis.
Subhanu Bangal:
Okay. Thank you. Got it.
Sunil Satwani:
Yes. Thank you.
Subhanu Bangal:
Thanks.
Hemant Mondkar:
I will add to this. We are also getting some subsidy for implementation of our machinery in D
zone. Because of that also, that effect of WDV also comes into that.
Subhanu Bangal:
Okay. Thank you, sir. Thanks.
Sunil Satwani:
Yes. Right. Yes.
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Moderator:
Thank you. Next question is from the line of Uttam Purohit from VVD Asset Management.
Please go ahead.
Uttam Purohit:
Yes. Thank you for the opportunity. So, I just have one question. Sir, how do we contract or we
sign LOIs with OEMs? Are these fixed-price contracts or variable, because as per the comment,
it's like we have to get back to them again for any price hikes fall on our books? So, can you
explain a bit more on that front?
Hemant Mondkar:
You want to know whether we have contracts with all the OEMs, is it?
Uttam Purohit:
No. It's like I -- we are not contracting, but generally, I think the component of price seems to
be fixed with them already in advance, so I want to understand little bit on that front.
Hemant Mondkar:
No. But then -- no. During the discussions and the long-term agreements, not written, but
understanding, that whatever increase in the price of raw material, they compensate us. And in
fact, this year, we have got a compensation for increase in our other consumer expenses increase
and all that also they have given us. So, we have, because of good relationship, it's a long-term
contracts and they want us to survive, and we never charge them.
We are always reasonable with our OEMs, and everything is crystal clear between the
relationship, and we have no problem at all in getting the compensations for any additional
expenses that go up. They expect us to increase our operational efficiency and try to give them
1% year-on-year reduction and all that, but that whatever is there, we do agree with them, and
we have no problem as far as cost compensation is concerned from the OEMs.
Uttam Purohit:
Okay. Great. And one more thing on our forging capacity. So, right now, it is somewhere around
68%, 69% kind of utilization. So…
Hemant Mondkar:
Yes.
Uttam Purohit:
Are we also expanding that facility as well?
Hemant Mondkar:
Now, two mechanical presses. One mechanical press has already landed in our plant in Shirwal,
and one more capacity of mechanical press is landing at our Nashik plant, so we are increasing.
And actually, today, we are at about 15% to 20% extra capacity in forging.
With this addition of this, we'll be able to face the -- because forging is something which we are
not going to get it from done from outside at all. Because the quality of forging what we get
from the market is not up to the mark, and these fittings quality, forgings are absolutely to
international standards, and that is something which we cannot get it done from outside.
Uttam Purohit:
Okay.
Hemant Mondkar:
So, forging capacity is more than adequate, and whatever is expansion is to be done, we have
got a complete team and technology for doing our own forging, in-house.
Uttam Purohit:
Okay. Got it. And one last question, generally, this price hikes from whatever raw material hikes
comes, we generally compensate this within 3 months to 6 months. Is that correct understanding?
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Hemant Mondkar:
You're right.
Uttam Purohit:
Okay. Thank you.
Hemant Mondkar:
You're right, sir.
Moderator:
Thank you. Next question is from the line of Anshul Mandowara from Indus Opportunities Fund.
Please proceed.
Anshul Mandowara:
Hi. Good afternoon, sir.
Hemant Mondkar:
Good afternoon.
Anshul Mandowara:
Congratulations on the successful IPO.
Hemant Mondkar:
Thank you.
Anshul Mandowara:
My simple question is, sir, when we talk about hydraulic fittings, so basically, do we have any
capacity or manufacturing capability for flexible flow solutions as well, or we are just focusing
on this hydraulic portion of the business only?
Hemant Mondkar:
No. As I told you in my talk also, that we are looking out for some valves also, upgrading to
valves, but the fitting business itself is so huge that we can increase it to the extent that we need.
You are asking me a question whether we have got to change the products or add-on products
or something like that? Is it a question I have understood it correctly, or what you would mean
asking me?
Anshul Mandowara:
No, sir. My question is, do we have existing capabilities for flow solutions as well, or we going
to...
Hemant Mondkar:
For what solution?
Anshul Mandowara:
Flexible flow solutions.
Hemant Mondkar:
What is the -- what do you mean by flexible flow?
Anshul Mandowara:
Basically, for liquid and gas flow movement with not that much of pressure that your current
product might be handling?
Hemant Mondkar:
No. We are not going for any low-pressure fittings. No.
Anshul Mandowara:
Okay. Correct.
Hemant Mondkar:
Actually, low-pressure fittings mostly for lubrication and all that, they are all brass fittings. We
are not entering into a brass fittings market at all. We are entering…
Anshul Mandowara:
Okay.
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Hemant Mondkar:
Into stainless steel fittings market, which will be related to oil and gas, and even the data
centers’requirements and all that. So, stainless steel fittings is okay. Brass business, we are not
going to enter into.
Anshul Mandowara:
Sure. Thank you.
Hemant Mondkar:
One of the major reason for this also, I'll tell you. Brass price fluctuates based on copper, and
there is a lot of chance of pilferage. So, we don't want to take the risk.
Anshul Mandowara:
Okay. And my second question is since we -- might be we are already doing OEM for major
brands of earth-movers, so do we have -- do we sell in our own brands to through our distributor
network, or is there any planning to do so?
Hemant Mondkar:
I have already shared that with you that with OEs, we are doing direct business, and for small,
small OEs, we are going through distributors. See, there are very small, small OEs who give us
a very small business every month. So, to reduce the burden of operations, we have established
distributors all over the place.
Anshul Mandowara:
Sure. Thank you, sir.
Hemant Mondkar:
But majority of business is, as I told you, 70%, 75% is OEMs, and distributor business is hardly
10%.
Anshul Mandowara:
Okay, sir. Thank you. Thank you for your time.
Hemant Mondkar:
Right. Okay.
Moderator:
Thank you. Next question is from the line of Aditya from Happy2Invest. Please go ahead.
Aditya:
Hi, sir. Am I audible?
Hemant Mondkar:
Go ahead.
Moderator:
Aditya, your line is unmuted. Please go ahead with your question.
Aditya:
Hello?
Moderator:
Aditya, please unmute yourself and proceed with your question. As there is no response from
the current questioner, we'll move to the next question from the line of Rahil Dasani from MAPL.
Please go ahead.
Rahil Dasani:
Yes. Thanks for the opportunity again. You shared a very interesting thing that the Indian market
itself for the hydraulic fittings is INR2,000 crores and maybe even more, while our scale is
maybe much smaller than that.
So, how do you think we should be capturing this market? Would we need to scale up our
distributor base, because right now distributors are a very small revenue component for us. So,
would we need the distributor base to scale up in a big way, or how will we scale up here?
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Hemant Mondkar:
Scaling here, we'll have to This scaling is going on right now, because majority of OEs who are
in Few of the OEs when they come, now, for example -- I'll give you an example. Now, consider
a company called Sany. It's a Chinese company. Now, they are manufacturing these excavators.
Now, they are the leading manufacturers of excavators in India.
Probably, they are selling something like 600 excavators a month. But their entire fittings are
being imported from China. Now, they have a commitment to the government to indigenize. So,
there is a time period of 3 years. Now, that is over. Now, last month, Sany director had visited
us, and they said, baba, we have got a tremendous requirement of these fittings. Can you do it,
and we have to import-substitute this?
We said, we are available. Such businesses are quite a few. So, this will give us additional growth
in terms of domestic market. Second point is that, as I told you, majority of external contractors
who get the contracts, tenders in India, they bring their own fittings from outside. So, now we
are catching up with them and registering ourselves with them, with those project people, so that
they will start using our fittings.
This is another avenue that is also available. Third avenue available is few of the OEs, because
of local conditions, they buy from small, small parties. Maybe one customer, for example, in
Bangalore, they have got seven suppliers for hydraulic fittings. So, they want to completely
reduce that to around two people.
In that, Hy-Tech stands a chance, and we get more and more SOB from them. So, these are the
avenues to grow domestically. So, we can domestically, we can grow. Now, for example, today,
we are domestically at about INR120 crores, INR130 crores out of other than export. So, this
business will go double in 3 years to 4 years’ time by taking this avenues into action. Okay?
Rahil Dasani:
Got it. Sir, that's very good to hear that the government is supporting us to indigenize the Chinese
supply chain.
Hemant Mondkar:
Yes, this is a good thing. So, for three years, they did not bother. My people, my marketing
people were going to them. They said, no, we are fine. Because the price, they are in subsidized
the prices, they are sending the material to India to compete in the Indian market. So, that is
going to slowly come down. And so, a lot of opportunities are there.
Rahil Dasani:
Got it. And if I were to ask from this INR2,000 crores, how much is the Chinese sales or Chinese
imports?
Hemant Mondkar:
No, I don't know that, but that can be around maybe INR100 crores, INR200 crores, INR300
crores. I don't know. I have never assessed that.
Rahil Dasani:
Got it. understood. And just one last question from my side. Excluding the current capex plan of
INR30 crores that we are doing to add machines in our existing units, the 6.5-acre land that we
plan to acquire, if you can share more on that, how much would that be costing?
Hemant Mondkar:
That I will share with you in the month of November about the entire plan of that 6.5 acres.
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Rahil Dasani:
Okay.
Hemant Mondkar:
Because we have just got the approval from the board to go ahead. Now, we have to prepare the
entire plan. But let me tell you, I am preparing that for INR350 crores to INR500 crores.
Rahil Dasani:
Sorry? If you can repeat.
Hemant Mondkar:
I am planning that for 2 years hence, 3 years hence, not now.
Rahil Dasani:
Understood. Okay, understood. And if you can just share the current 5 units to 6 units, if I'm not
wrong, that we have, what is the land acreage of that in totality, if you have that?
Hemant Mondkar:
Yes, I'll tell you. It's about 3 + 4 = 7 + 1 = 8, about INR8 crores -- 8 acres.
Rahil Dasani:
8 acres we have right now.
Hemant Mondkar:
Yes, that is 3,20,000 square feet.
Rahil Dasani:
Understood. Perfect, sir. Thank you, sir. This was very helpful. Thank you.
Hemant Mondkar:
Right, right.
Moderator:
Thank you. Next question is from the line of Rajneesh Bhandari from VMware. Please go ahead.
Rajneesh Bhandari:
Yes, hi. Can you hear me?
Hemant Mondkar:
Yes, yes, Rajneesh. Go ahead.
Rajneesh Bhandari:
Yes. Hi, sir. So, thanks for the opportunity, sir. So, just wanted to check on one of the comment
like what your CFO made, right? So, we had a little bit of an employee expenses going up in
this quarter. So, can you throw some light like what conspired that increase in the employee
expenses? It's because of some...
Hemant Mondkar:
I think I shared that with you. Employee expenses have not gone up. Employee expenses are the
same. Because the top line has gone down, right, top line means we have shifted the business,
na?
Sunil Satwani:
So, sir, may I.
Hemant Mondkar:
In the second quarter, it will get corrected.
Rajneesh Bhandari:
So, are you saying that absolute amount what we did on the employee expenses is the same
between the quarters, because if I remember correctly, it was higher?
Hemant Mondkar:
Absolute figure is a little higher, na?
Sunil Satwani:
See, employee expenses in the current quarter, it is higher, which is, I think, 68. We are
comparing with the last year Q1. So, there is an increase in the top line, so in terms of absolute
value, employee expenses will also grow up in the similar line. But what sir wants to say that
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there is a sale which -- there's a cutoff sales which has happened, which has been shifted to the
next quarter because of the cutoff procedure as per the accounting standards. So, if I add that
particular sales, so in terms of the percentage, employee expenses will remain at the rate of 12%
of the total sales. Understood?
Rajneesh Bhandari:
Oh, okay, got it. Yes, okay. That's understood, Yes. Yes, thanks a lot, Yes. I think that's what I
was just wondering. Yes, thank you.
Sunil Satwani:
Yes.
Moderator:
Thank you. Next follow-up question is from the line of Srinivasareddy from Yellow
Investments. Please go ahead.
Srinivasareddy:
Yes, sir. I have one question on our SKU catalog. We have a fantastic catalog of around 11,000
SKU, actually which is our moat. But which is caught my eye is, sir, in fiscal 2024, the SKU
which is newly produced is around 2,206, but it fell into 880. Sir, I want to understand whether
we are going into the higher value parts, or it's just a slowdown on the new SKUs what we are
adding?
Hemant Mondkar:
Srinivas, can you repeat the question, please?
Srinivasareddy:
Sir, we have in FY in fiscal 2024, our new SKUs added to our catalog is around 2,206. This is
the data from RHP. But in fiscal 2026, our new SKUs is around 880 added to our catalog. What
I'm knowing --what I want to know is whether we are producing the lower number of higher
value parts, or we are just deliberately just slowing down the adding of new SKUs?
Hemant Mondkar:
It's not a question of cost or anything of it. Suppose if you're working with the OEM, they come
up with some new equipment, then they give us an RFQ for the new items. That's how the SKUs
get added.
Sunil Satwani:
Reddy, sir it depends upon the inquiries given by the companies or OEs, on the basis of we
develop the SKUs. It is, as sir wants to say, like that.
Srinivasareddy:
Okay, got it, got, sir. Thank you, sir. That's all from my side. Thank you.
Moderator:
Thank you. Next question is from the line of Paras Chheda from Purpleone Vertex Ventures
LLP. Please go ahead.
Paras Chheda:
Thank you, sir, for this opportunity. While most of my questions have been answered, just for
the sake of clarity, just, two queries I want to ask, sir. One is that we've worked, in a five-year
goals, so at the end of five-year, what kind of business size or revenue-wise are we targeting,
sir?
Hemant Mondkar:
Five years down the line, we'll go to 500.
Paras Chheda:
About INR500 crores.
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Hemant Mondkar:
You calculate you calculate on the basis of 20% to 25% growth, and then you'll come to the
figure.
Paras Chheda:
Right and on the PAT side, you said about 25% to 30% growth Y-o-Y?
Hemant Mondkar:
Yes, yes.
Paras Chheda:
Okay. And sir, just, again for the sake of simplicity and clarity, what is the market size of our
products in India and globally?
Hemant Mondkar:
What do you mean by market size? Market share you're talking about?
Paras Cheda:
No, market size. Just, the overall market size.
Hemant Mondkar:
I told you that.
Paras Cheda:
INR2,000 crores.
Hemant Mondkar:
Total market size total market size in India is INR2,000, I'll repeat it, INR20,000 crores in USA,
INR10,000 crores in Europe, INR2,000 crores in India, and INR8,000 crores in other countries.
That is the market size of our whatever products we are manufacturing.
Paras Cheda:
Right.
Hemant Mondkar:
Is it clear?
Paras Cheda:
Understood, sir. It is quite clear.
Hemant Mondkar:
Okay.
Paras Cheda:
And the EBITDA margins, you said, have been it is one-off, because of the first quarter.
Hemant Mondkar:
I think should not repeat the questions.
Paras Cheda:
No, I think so. I've understood, sir. That's fine. Thank you so much, sir.
Moderator:
Thank you. Ladies and gentlemen, as there are no further questions from the participants, I now
hand the conference over to the management for the closing comments.
Hemant Mondkar:
So, thank you very much, all of you, for the first earnings call, and I'm very happy and you have
been very, very inquisitive to ask questions about Hy-Tech. I can assure you any queries or
doubts, feel free to write to us. I am giving you an open invitation to visit our factory in Shirwal
anytime you wish. Stay invested, and grow with us. Thank you very much.
Moderator:
Hemant Mondkar:
Thank you, sir.
Thank you everyone.
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Moderator:
On behalf of Hy-Tech Engineers Limited that concludes this conference, thank you for joining
us and you may now disconnect your lines.
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