Earnings Call Transcript - XNSE:REFEX 2026-10-29

Operator

Ladies and gentlemen, good day and welcome to the Q2 F527 earnings call of Refx Industries Limited. As a reminder, all participant lines will be 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 till zero on your touch-tone phone. I now hand the conference over to Ms. Vidhi Vasa from MUFG End Time.

Vidhi Vasa, Head of Investor Relations

Thank you, and over to you. Thank you, Nesha. On behalf of MUFG NTIME, I welcome you all to the Refx Industries Limited Q2 and H1 FI27 Earnings Confidence Corps. On the management side, we have Mr. Dinesh Kumar Agarwal, full-time director and chief financial officer, and Mr. Sonif Jain, head accounts and taxation. I hope everybody had an opportunity to go through the investor deck that we have uploaded on exchange on the company's website. I would like to mention a short disclaimer before we begin the call. This call may contain some of the forward-looking statements which are completely based upon our belief, opinion, and expectation as of today. These statements are not a guarantee of our future performance and involve unforeseen risk and uncertainty. With this, now I hand over the call to Mr. Dinesh Agarwar. Over to you, sir.

Dinesh Kumar Agarwal, CFO

Thank you very much, Vidhi. Good morning, and thank you for joining us for the Refx Industries earning call for the second year, second quarter, and half year ended 30 September, 2026. The quarter reflected solid executions in our established business and encouraging early progress in the new month. Let me take you through the developments across our business segments, starting with ash and coal handling. India's growing power demand, continued dependence on the thermal power generation, and plans for further increase of the capacity to 150 gigawatts in the coal-based power plant by 2035, Compared to earlier envisaged 97 gigawatts, continue to provide strong structural growth opportunity for our business. Stricter environmental compliance requirements and financial consequence of non-compliance are also making the ash management and complete ash utilization a critical operational necessity for the thermal power plant. and accelerating the shift towards outsourcing to organized players with proven executions capabilities, strong logistic infrastructure, and robust compliance credences. This quarter of the year has always been tough for us with monsoon conditions in northeast and central part of India, Directly impacting our exhibition's volume and consequently impacting the revenue due to rainfall, waterlogging, and transportation's constraints, temporarily reducing our volume, which we handle on a day-to-day basis. Therefore, quarterly performance needs to be viewed in the context of seasonal operating conditions. Despite these weather-related challenges, we have made healthy year-on-year progress with revenue up by 36% and part up by 13% in the Q2 financial year 2027 and part up by 56% in H1 financial year 2027 on year-to-year business. This reflects the strength of our underlying business, execution capabilities, and growing our order pipeline. As conditions bounce back, our focus remains on accelerating the execution, mobilizing new secured order, and converting opportunity into profitable growth. The focus on developing integrated house handling contracts has been high and we are working in multiple states to convert the opportunity to order. We will continue to exercise, discipline our bidding and pricing and commercial arrangement with the Genco's, with an emphasis on the sustainable margin, operational efficiency and timely realization of revenues. Moving to our next areas of focus, I would like to highlight our entry into ReadyMix Concrete Business, an important strategic step that represents a natural forward integration for our existing ice and link business. By extending our presence downstream into the construction material and infrastructure ecosystem, we aim to strengthen asset utilization, access new markets, create complementary avenues for the growth, while leveraging our existing expertise in logistics and material handling and industrial operations to build an integrated presence across the value chain. The Indian RNC market presents a significant opportunity driven by infrastructure development, organization, and increasing demand for the quality-controlled concrete. Industry estimate indicates the market is expected to grow approximately 240 million cubic meters, valued at 1.25 lakhs crore in 2025 to 317 million cubic meters, valued at 1.74 lakhs crore by 2031, representing a casual growth of 7% year-on-year. Our first RMC plant at Choroli, Pune, commenced the operation on September 2026, followed by Huskote in Karnataka and Kalyan near Mumbai. We are progressing with a phase rollout across Mumbai, Bangalore, Hyderabad, Kolkata, and Chennai. The business is being led by Mr. Anir Kulkarni, an industry veteran bringing 30 years of experience and leadership to this business expansion. Our differentiation in the RNC business will be built around sustainable concrete solution, advanced technology, and customer-centric innovation. We are promoting green concrete through greater fly ash utilization, supporting the cement industry decarbonization effort, while developing fly ash blended concrete for enhanced durability in conditions of water scarcity and deteriorating groundwater quality. Technology and automation will be central to our operational model, with a focused and fully automated, technology-enabled and manless R&C plant to address lever shortage, improve operational efficiency, and ensures consistent quality. Alongside this, we intend to move beyond commodity-based raw material suppliers towards solution-led customized concrete offering, tailored to specific customer needs, construction application, and project requirements, creating a greater value through product performance and application expertise. To support this ambition, we are building an integrated technology platform covering batching, logistic, procurement, and financial reporting alongside stronger capability across sales, quality, and operations in the RNC. We intend to create a scalable operating model with It's a commitment to 100% on-time delivery and zero-Q failure, and not just individual R&C plans. Importantly, we are adopting a capital-light, lease-based model that enables us to scale without significant investment in fixed assets. We believe this is the right way to build the business, scaling the operation, expanding the selectively to an attractive market, maintaining financial discipline as we grow. While this new business will require disciplined execution and clear focus on unit economics, we will balance growth opportunity with capital efficiency, working capital discipline, and sustainability profitability. Overall, we remain focused on strengthening our core business of arts and corn handling business while building the RMC as a complementary growth engine. We believe that forward integration will create additional growth opportunity and support sustainable value creations to our shareholders. Moving to our next business, next subsidiary of the business, which is wind turbine manufacturing business. The industry continues to witness strong momentum supported by India's renewable energy ambition and improving project executions environment. India has added approximately 1.8 gigawatt of wind capacity during the July to September 2026 quarter, reflecting a growth of 30% sequentially and 21% year-on-year. As a result, the country's total installed wind capacity reached 59.2 gigawatt as of September 2026. Looking ahead, the growth outlook remains favourable, with Ministry of New and Renewable Energy indicating that India could add up to 8 gigawatt wind capacity during financial year 27, compared to 6 gigawatt during financial year 26. This strong pipeline expected to support increased equipment demand and project activity across the wind and as the beliches. With this structural tailwind, we see early and positive signs of customers with positive progress toward our order conversation and execution and getting the new order. We remain focused on delivering our existing order book while strengthening our manufacturing and indigenous capabilities. The business continues to make steady progress during the quarter with the delivery gaining momentum and initial supplies completed all three customers, Tawin, KPNRG, and Jindal. Project execution is advancing across the customer side with foundation and erections activity underway in line with the delivery schedule. In parallel, the company is progressing on technology transfer, indesignization of initiatives including the development of domestic manufacturing capability, while strengthening its leadership and execution scheme with experienced industry professionals to support the next phase of growth. Coming to our green mobility business, our priority is profitable growth. We are pursuing it through four initiatives. Fast, govern, attached supply. We are moving from own vehicle to driver-come-owner model and third-party supply with the same quality and the service standard for every vehicle. This turns fixed ownership costs into variable payout, increasing the skin in the game for the other arrows. Second, contract discipline. We are taking off only margin accelerated contract, accredited contract, and existing legacy contract that lost money in the historical workaround. Third, operational density. As our vehicle network grows denser each city, our fleet utilization is improving, in turn increasing our earnings. Automation. We are automating across the operations from billing, collection, driver payout, and maintenance to reduce the leakage and keep overheads from growing as fast as volume. On the revenue side, we are scaling the corporate rental segment alongside the employee transport segment, which anchors steady long-term demand. We are also adding demand channel partnerships and integration with the technology-enabled fleet management, tying this together. On the demerger process, we have completed key procedural milestones, and the final approval from Honorable MCLT is currently IOT. The matter is listed on 11th of November in the coming month. Subject to the necessary regulatory approval and completion of the remaining formalities, we expect this demerger process will get completed within next two to three months' time. I'll take you through the financial performance of the company for the quarter ended, that is, September 2026. On a standalone basis, revenue from the continuing operations is 560 crore, compared to 411 crore on a year-on-year basis, which represents a 36% growth. EBITDA stands at 91 crore, compared to 74 crore on a year-on-year basis. This EBITDA growth of 22% on a year-on-year basis, and the current year EBITDA margin is 16%. Profit after tax is INR 60 crores compared to 53 crores on a year-on-year basis, which represents a 13% fat growth on a year-on-year basis. For the half-year ending, stand-alone revenue is 1179 crore, compared to 760 crore in the previous half-year, which is on a year-on-year basis, which represents a 55% growth in the revenue. EBITDA, 196 crore, compared to 114 crore on a year-on basis for the half-year, which is growth of 17% on a year-on-year basis. Profit after tax, 133 crore compared to 86 crore on a year-on-year basis, which represents 55% growth on a year-on-year basis. And also there is an increase in the part margin compared to the previous half-year in the same period. Our balances continue to remain healthy, and we remain committed to maintaining financial discipline while simultaneously investing in the growth opportunity across our business. For wind energy business, revenue for the quarter is 2.01 crore compared to 2.97 crore in the previous quarter. EBITDA of 11.32 crore compared to minus 3 crore in the previous quarter. For the mobility business, revenue for the quarter is 36 crore compared to 33 crore in the previous quarter. There is a growth of 10% compared to the previous quarter, and we have achieved the positive EBITDA in the mobility segment in this quarter, and we have done an EBITDA of 1.3 crore compared to 0.8 crore in the previous quarter, and this business, we can see the profitability path in the business. Our leadership team is fully committed to bring a path-level profitability in a year's time. With this, I request the operator to open the floor for the question and answer. Thank you.

Operator

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while a question queue assembles. The first question is from the line of Udash Tengel from Pinpoint X Capital. Please go ahead.

Udash Tengel, Analyst — Pinpoint X Capital

Thank you for your results. Regarding the wind energy business, we've been talking of the orders getting finalized soon. I mean, what exactly is the pipeline for next year and how soon would the orders get finalized? I mean, are there ROW issues or some, you know, price negotiations or, I mean, what stage are we at?

Dinesh Kumar Agarwal, CFO

We are in the final stage of price negotiation. Project execution, ROW issue, or land issue, I mean, won't come to us because we are only the equipment supplier. And we are in the final price negotiations closure stage for the large volume of the order. We should have, I mean, we should close within the next 30 days to 45 days' time, and we will announce the same. Okay, sir.

Udash Tengel, Analyst — Pinpoint X Capital

Thank you. And regarding, sir, the backward integration in this wind energy business, what other steps we are taking and from when can we see, you know, the margins coming in and what would be, say, the ideal margins we are targeting two, three years down the line?

Dinesh Kumar Agarwal, CFO

See, I mean, backward integration, or we can call it a setting of a manufacturing plant, indigenous manufacturing plant is in full swing. Manufacturing plants should be operational between 12 to 14 months, and there will be a real impact of that will take another six months after that on the profitability. Certainly, there will be good impact on the profitability, I mean, after a year, year and a half in the books.

Udash Tengel, Analyst — Pinpoint X Capital

So, sir, like we see like INOX and SUSLON, they make 17, 18, 20% kind of margins. Is that our aspiration as well?

Dinesh Kumar Agarwal, CFO

That is the aspiration, but they are little already, I mean, they mature in the localization.

Udash Tengel, Analyst — Pinpoint X Capital

Thank you, sir. And with respect to the RCC business, that's a new segment we've come up with. What is the thought process? I mean, what would be the potential revenue or EBITDA margins we are looking at? And I mean, won't we be facing competition from the cement players? I mean, what is our edge and, you know, outlook for it?

Dinesh Kumar Agarwal, CFO

This is, see, already we work on the as-suppliers to the infrastructure company currently, and this is, and also we supply to the existing RNC plant in India, and this is more of a forward integration for us, and it is, I mean, we'll have a better margin compared to the whoever currently is present in the RNC business, And we are purely going with a zero capex model as a slice model, and also with respect to the people. We'll be more of a tech-driven approach to the people-driven approach in the RMC. And we'll have an edge over the existing player in terms of the operational execution capability. It will take another three months to five months to show the impact in the profitability. Because it takes time for the setting of the new plant. And we see a very good growth in this segment because it is a natural forward integration or natural compatibility for us into the same business. This is, though it is a new business, new business, but as a operationally, we are already working with the RMC plant for last one year and also with the infrastructure company for last several years. Thank you.

Udash Tengel, Analyst — Pinpoint X Capital

So, sir, potentially, say, two, three years down the line, could this be as big as the coal ash business?

Dinesh Kumar Agarwal, CFO

It should be. And that is, we're working towards that.

Udash Tengel, Analyst — Pinpoint X Capital

And with respect to the coal ash business, the core business, how do we see the growth going forward? Like, I think we have a good growth aspiration for this year, and how is that shaping up, and what about the coming year as well?

Dinesh Kumar Agarwal, CFO

As we have spoken in the earlier call also, we are at 20% to 25% of the revenue growth in the year to come.

Udash Tengel, Analyst — Pinpoint X Capital

Okay, so we can take that for this year as well as next year?

Dinesh Kumar Agarwal, CFO

Yes.

Udash Tengel, Analyst — Pinpoint X Capital

Okay, sir. Thank you. Thank you, and best of luck, sir.

Operator

Thank you. The next question is from the line of Deepak Podar from Sapphire Capital. Please go ahead.

Deepak Podar, Analyst — Sapphire Capital

Yeah, I'm audible, sir. Thank you very much, sir, for this opportunity. So, just wanted to understand first up on the wind side, that price negotiation that you were saying. So, what's the quantum, I mean, any reference of that order we are looking at?

Dinesh Kumar Agarwal, CFO

It is a good quantum, I mean, it is a very, very good quantum, and we expect it will be a substantial good quantum difference.

Deepak Podar, Analyst — Sapphire Capital

I mean, higher than your existing order book? I think our existing order book is close to what, 1100?

Dinesh Kumar Agarwal, CFO

Somewhere close to the existing order book.

Deepak Podar, Analyst — Sapphire Capital

So, 1100 is our existing, right, in wind?

Dinesh Kumar Agarwal, CFO

Yes, yes.

Deepak Podar, Analyst — Sapphire Capital

Okay, understood. And any more pipeline in your ash and coal business order book as well? Currently, it's about $1,700. So, can you throw something in there?

Dinesh Kumar Agarwal, CFO

There is a – I mean, it is more of a tender waste compared to wind. We have already participated in a large tender. We expect all that tender to open in the coming – I mean, next one month, two, two months. And, I mean, it is actually every week, every week, every 10 days, new tender keep opening and we keep submitting it. I mean, any small order of 50 crores, 200 crores, we will keep announcing in every week.

Deepak Podar, Analyst — Sapphire Capital

So, I mean, do we have a benchmark? I mean, every quarter we look to add around, what, 400 crores, 400, 500 crores?

Dinesh Kumar Agarwal, CFO

Pure tender drive-in, though we have a target, but it is very difficult to predict the value of total tender. But whatever we execute, we try to add more than that.

Deepak Podar, Analyst — Sapphire Capital

Got it. And on the wind side, now on the margins, I think we had earlier said by year-end we will look to have maybe what 4-5% pat margin. Now the scale is also kind of increasing. I mean, we have done in the first hour on 500 crores of execution. So where are we there? I mean, are we still looking by FI27 and we can be pat margin of what 4-5%?

Dinesh Kumar Agarwal, CFO

At margin, we have EBITDA margin of 4% to 5%. At margin of 2.5% to 3% will be there in the current financial year and in the coming financial year till half year. After that, margin will further improve due to indigenization. It will improve further.

Deepak Podar, Analyst — Sapphire Capital

So this year we are still targeting FI27, EBITDA margin of 5% to 6% and PAT margin of 2% to 3% in Wynn business?

Dinesh Kumar Agarwal, CFO

Yeah, 4 to 5%.

Deepak Podar, Analyst — Sapphire Capital

4 to 5% EBITDA.

Dinesh Kumar Agarwal, CFO

Yeah.

Deepak Podar, Analyst — Sapphire Capital

Okay, I understood. And execution, we have earlier said on 1,800 crores kind of execution in this year, right?

Dinesh Kumar Agarwal, CFO

No, we have earlier told that we will complete the order book, which will be, as of now, around 1,100 to 1,100 crores. We'll do a business of 1,300 to 1,400 crores in the current financial year.

Deepak Podar, Analyst — Sapphire Capital

I mean, first half, we have already done around close to 500 crores, and we have got 1,100 crores more order. So we don't expect this 1,100 crores to get executed.

Dinesh Kumar Agarwal, CFO

The part will get spillover to the coming financial year. Largely, large part will get executed in the current year.

Deepak Podar, Analyst — Sapphire Capital

Correct. So 1,300 to 1,400 crores execution we are targeting.

Dinesh Kumar Agarwal, CFO

1,300 crores in a complete financial year.

Deepak Podar, Analyst — Sapphire Capital

I got it. And last thing on the coal ash business, you mentioned to the previous participant, we are looking at 20-25% CAGR, right, in terms of growth. I mean, in the first half, we have to see we have grown this business by about 53%, right? So, this year, we expect a higher growth for coal. Already in the first half, we have done quite well, right?

Dinesh Kumar Agarwal, CFO

That's the target, but on a guidance side, we'll be maintaining that 22-28%. But for us, in this quarter, Q2 is always lesser due to monsoon. But we were able to execute in the new geography, where rain is less, especially the south, and which has impacted our revenue and the profits. Yes, we have done well on a year-to-year basis, and we expect this growth momentum to continue.

Deepak Podar, Analyst — Sapphire Capital

To continue. So ideally that range, we can beat that range in this year, FI27. I am not talking about FI28, but this year, because first half year we are so much higher, I mean 53%, so this range of FI27...

Dinesh Kumar Agarwal, CFO

You see, absolute term, last year, H2, had very, very substantial compared to H1 of the previous year. Correct. I mean, in absolute terms. So, that's the reason, that's the reason we can safely assume at 20 to 25 percent of its growth on a year-to-year.

Deepak Podar, Analyst — Sapphire Capital

Understood. And what's the volume we are doing right now?

Dinesh Kumar Agarwal, CFO

70,000 per day? U2 was quite less. It was around 40,000, 35,000 to 40,000. But, I mean, volume started going off. Though there is some part, there is a tsunami or the rain going on for last one week. But volume started going off.

Deepak Podar, Analyst — Sapphire Capital

Okay, so by fourth quarter, 90,000 that we have been targeting. Yeah, exactly. That remains the target, right?

Dinesh Kumar Agarwal, CFO

Yeah, that remains the target.

Deepak Podar, Analyst — Sapphire Capital

Got it. That would be it from my side. I wish you all the best. Thank you.

Operator

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

Sakit Kapoor, Analyst — Kapoor & Co.

Yeah. Namaskar, sir. I'm audible.

Dinesh Kumar Agarwal, CFO

Yes, yes, Sakit.

Sakit Kapoor, Analyst — Kapoor & Co.

Sir, firstly, when we look at our balance sheet, we have cash and cash equivalent to the tune of 322 crore and bank balance to the tune of 153 crore. Whereas our finance costs have gone up on a Q1Q basis from 13 crore to 17 crore and other income has declined. So, can Can you please explain where I am netting something?

Dinesh Kumar Agarwal, CFO

Yeah. See, finance cost has gone up, but there is an impact on the growth margin. We have started paying all our vendors through the Tricks platform with a certain cost, and also which is benefiting the vendor, and we are also getting an additional discount in the direct cost, It is also, there is a good impact on the gross margin at the COX level. That, whatever the finance cost increase is getting offset or we are getting more benefit in the COX level. So, see, there is a new platform that is a trade limit for the MSME vendor, which is we are taking the benefit rather than utilizing the cash balance available in the bank.

Sakit Kapoor, Analyst — Kapoor & Co.

I didn't get the point, sir. Why would then the finance cost go up when we are getting it, when we are... There is...

Dinesh Kumar Agarwal, CFO

Yeah, finance cost is a separate line item in the indirect cost, will show increase because of the payment to the trade platform, whereas the vendor cost in the COX is a separate line item in the direct cost, which is showing a decrease in the cost.

Sakit Kapoor, Analyst — Kapoor & Co.

Okay. But as we are making the payment, sir, our cash and bank balance should be lower on that point. Why have that moved up and, yeah.

Dinesh Kumar Agarwal, CFO

Because that limit is being paid through the trades platform rather than utilizing the bank balance. And bank balance is a subject to the collection. The day the quarter-end bank balance has gone off, over a period of time, it is a fungible, it keeps growing. I mean, balance is less, increasing. That is, that's not the uniform across the quarter.

Sakit Kapoor, Analyst — Kapoor & Co.

Okay, because on the trade receivable front also, that has also ballooned to 1251 crore. Because the turnover also has increased, sir. Yeah, yeah, that is correct, sir. But our first half revenue is 1677 crore, and the trade receivables are to the tune of 1250 crore.

Dinesh Kumar Agarwal, CFO

Yes, sir. It is the same receivable cycle of 120 to 130 dollars.

Sakit Kapoor, Analyst — Kapoor & Co.

Okay, sir. Sir, then coming to the other expenses also line item, when we look at on a Q1Q basis, that has gone down from 23 crore to 11 crore. Sir, what explains this Q1Q movement in the other expenses?

Dinesh Kumar Agarwal, CFO

If you remember, on the Q1 call, we have explained that in the Q1, there is a one-time expenses that's been given for the bank's processing fees. We have changed from SDFC Bank to Indian Oasis Bank and the Canary Bank. For that, prepayment charges and the processing fees, impact was there around 4.5 crore in the Q1, which is not there in each Q2.

Sakit Kapoor, Analyst — Kapoor & Co.

Okay. Even eliminating that, also, the expenses have gone down. That is because of the lower Or volume or any proportionate to it that results in other expense, the key elements? No, I mean, say travel goes down in the Q2, North and in the South. These are the few impacts. Sir, can you outline how then H2 should look up? I think you just alluded to earlier friends that we have a better Q2 in terms of higher revenue from the coal handling part. And also as handling part and also on the wind energy, wind order also getting executed. So on a conservative basis, how should the H2 look like? And what should be the EBITDA margin trend because of the higher operating leverage kicking in? Can you outline to us how on last year basis, how do the current H2 looks like?

Dinesh Kumar Agarwal, CFO

Our EBITDA margin in a standalone basis will be built in 15% to 18%, which we have spoken during all the previous calls. And this year, growth will be built in 20% to 25% in terms of the revenue. And with respect to the wind energy, which I have told in the earlier call, we will be completing the majority of the order. A few orders will get spillover to the next year's first quarter, and we'll have a 2.5% to 3% will be the fat, and 4% to 5% will be the EBITDA market.

Sakit Kapoor, Analyst — Kapoor & Co.

Okay. And lastly, on the green mobility part, how do this business fits into the realm of things that the company currently do? How do they complement our existing businesses or in terms of the critical mass and the scale that we may be looking into and the key rationale? Although we are demurging it, but still the management bandwidth and all will be there. So, what is exactly the thought process, firstly, for the green mobility part? And also, pertaining to the RNC part, if you could just outline to us the largest player in the RNC segment, how are those cement players' margins are currently? Because whatever reporting, my understanding is, none of them make good money on the RNC part of their story. It's more of the branding that goes into, rather than the pure RNC play. I'm talking of the likes of ACC and even Builder Corp and all. I may be incorrect also on my book. Correct me there on these two parts because these may act as anti-EPS dilutive in the way forward pertaining to the growth that we are seeing in the remaining business. That is only the thought.

Dinesh Kumar Agarwal, CFO

The RMC, if you read the Ultratech balance sheet and the RDC concrete balance sheet well, they are also making a profit of 10%, which is very much possible, and they are making a 10% profit in spite of there is a majority of the unit level, there is a loss. You can see what kind of a profit can come from R&C. It is not a branding, it is, if you see their sales volume in a cement business, they actually sales more to the R&C, through the R&C, than a direct sales. So, it is actually a one, this is a separate line of business for the cement company, and they make good money out of it. And coming to the green mobility business, First of all, from the management bandwidth perspective, this business, there is a CEO, Mr. Anirudh Arun, and he has a very, very strong team. They come, and Mr. Mith, Gorodia, Ankit, Rohan, Pashupati, they manage this business independently with a very, very strong domain expertise. And once the de-merger happens also, they are going to continue managing this business. Anirud Arun has a very, very, very great credential in the same segment of the business. He is the CEO for this business. And with respect to the complement, I mean, in IIT business also, and also the RNC business, One segment which is one of the items in this business is the logistic, which plays a major role in delivering the service for this business, and mobility is also more of a logistic business with a tech-driven approach, and this complements the business, and also going to be separate since the customer segment will be completely different. That is the reason it will be demurged, and it will be a separate listed company. Every shareholder of this company is leading the…

Sakit Kapoor, Analyst — Kapoor & Co.

One question regarding Mr. Jain, that over a period of time, sir, we have seen the valuation which the company used to command, say, an year or 18 months ago, that has now degraded. And we are trading at a lower fee in spite of delivering on promised set of numbers and taking the initiatives of growth. So what is the understanding of the management being the largest shareholder on the type of forward fee that is being currently depicted by your minority shareholders? And on the pledge part also, how are we progressing? I think so every quarter and all, we get an update of how things are going to move ahead. So on these two aspects, what is the thought process of this promoter? Jainthap, if you could just uprise us.

Dinesh Kumar Agarwal, CFO

Anilji is not there in the call today, just to answer, value action is a matter of market drive and market determined value, and our focus is only building the business. We continue focus and building the business with a great profit, reporting, creating a shareholder value, But market is not under anybody's control. It works with a different, not only the results, it also varies geopolitical things it considers. So I would not like to comment on the market. And coming to this airplay, we need to divide this airplay into two things. What has been borrowed and utilized as a business, and another segment, large, which is close to 400, 450 crores, has been only given as a secondary place for the acquisitions of another business, and for that, large amount of the place will get removed within three to five months by month completely, where you can see a significant drop in the place percentage.

Operator

Sorry to interrupt you, sir. I would request you to rejoin the queue for a follow-up question. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. Should you have a follow-up question, we would request you to rejoin the queue. The next question is on the line of Duhani Singh from ROS Capital. Please go ahead.

Duhani Singh, Analyst — Ross Capital

Hi, first good afternoon. So, I just had two questions. With the company entering RMC business, how does the management expect this new vertical to contribute to overall profitability and EBITDA margin?

Dinesh Kumar Agarwal, CFO

RMC segment will start contributing to the overall profitability from the coming financial And it will contribute a good amount to the total profitability. In the current financial year, it will go towards the setting up of the new plant and establishing the theme across the location. But we expect from the coming financial year to have a real impact on the business.

Duhani Singh, Analyst — Ross Capital

Okay. And how much of the existing Wind Energy order book was executed during Q2S597? And if you could let us know, what is the expected execution trajectory for the remaining order book?

Dinesh Kumar Agarwal, CFO

I have answered this question in the last two previous participants. That we will be executing a large part of the order in the current financial year. A small spillover will happen to the, let's put the contract terms only, to the next year financial year. And, I mean, this business will grow year-on-year with it substantially because it is a new business, and we are delivering as per the contract, and we are in line as per the contract within the scheduled time. We are delivering all the order, and we have delivered part of the order to all the KPMR, the Torrent, and the Jindal, and the balance also will get executed as per the customer schedule in the coming quarter.

Duhani Singh, Analyst — Ross Capital

Okay, sir. That helps. Thank you very much.

Operator

Thank you. A reminder to all the participants to please limit your questions to two. The next question is from the line of Ankur Kumar from Alpha Capital. Please go ahead.

Ankur Kumar, Analyst — Alpha Capital

Hello, sir. Thank you for taking my question and congrats for a good set of numbers. Sir, in terms of this standalone business of ASH and call handling, you are saying it is like 20-25% growth type, but this one edge we have done really well. So, for this second half, what kind of growth should we expect in terms of this segment?

Dinesh Kumar Agarwal, CFO

I mean, we expect from the last year, H2 will maintain the same and also will have a certain more growth. On a year-to-year basis, we'll have 20% to 25% growth, and we are trying to do better. As of now, the commitment is 20% to 25% growth, but we'll have better numbers than the last financial year. Business is doing well. It also has certain factors, rain, other disturbance in the ground. We have established more geography compared to the previous financial year, which is helping us to get the good revenue number and delivering to the client service. We expect a good growth momentum in the remaining part of the half year in the current financial year.

Ankur Kumar, Analyst — Alpha Capital

Sir, actually, 20 to 25% growth would mean not much growth in second half. If 20 to 25% is for full year, then second half will not be much growth. So, that is why I wanted to ask on this.

Dinesh Kumar Agarwal, CFO

Ankur will have a very good growth. I do not want to commit anything on the number term. But to tell you, we'll have a good growth in the years too. So, 2020, we have a good order book. We have a good order book. We have strong executions team. And RNC getting added. And the team got added into the RNC. It's complementing the business into the New York geography, especially like Karnataka, Maharashtra, where our presence was very, very less. It is helping us. I mean, both the team are thinking really well, complementing each other, helping each other, and we'll have a strong growth in the S2, financially apparent design.

Ankur Kumar, Analyst — Alpha Capital

Sure, sir. Thank you.

Operator

Thank you. The next question is from the line of Sajal Raj from Zentro Finance Private Limited. Please go ahead.

Sajal Raj, Analyst — Zentro Finance Private Limited

Good afternoon, sir. Am I audible? Yes, sir. Yeah, so actually, my question is on working capital management. As we are looking at a lot of cash is getting stuck in the working capital. So, like, what kind of measures do you are taking to, like, group the working capital? See, this is more of a working capital intensive business. One of our USPs is to ease the working capital for the vendor or the partner who works with us. And another area where the receivable looks, I mean, high, especially the contract, is the retention money. Retention percentage differs from contract to contract, and there is a cycle and due dates to it, which takes time for the collections to come, and with getting added into the receivable and contract assets, and showing high. Whereas the regular cash generation, if you see the cash flow, our very, very good, positive operating cash flow, business is doing well in terms of the cash flow. We manage the working capital very, very tightly, very, very, I mean, considering the borrowing. We maintain a very, very low compared to the industry, much, much lesser than the industry, our borrowing cost. And, I mean, we are, compared to the turnover, revenue, locations, our working capital cycle is well within the controlled limit. With a zero-zero better. No LD, no better. Okay, and sir, what will be like working capital days for April 27th? Will it be like any kind of ballpark number you are targeting? It will be the same 130 days. I mean, breaking that cycle is not easy. I mean, that is where we are trying to bring some level of automations more so that billing and certification happens faster, where that cycle is only under our control, rest is not under our control, Which is taking some time from 30 days to 60 days. If we break that cycle, further working capital cycle can be brought down. And especially this billing and certification, which sometimes goes to 70 days, is impacting the overall receivable cycle. Okay, sir. And sir, yesterday, like, we had an NCLT wearing on the demerges, so like, what is the setup for that? It is got engine to 11th of November. There was no seating. Honorable judge was on holiday. And it is on the 11th of November, 2026. Thank you so much for taking my question. Yeah, all the best.

Operator

Thank you. The next question is from the line of Sathak Jain from Desvallado Advisory. Please go ahead.

Sathak Jain, Analyst — Desvallado Advisory

Yes.

Dinesh Kumar Agarwal, CFO

Sathak J, can you beat louder, Sathak J?

Sathak Jain, Analyst — Desvallado Advisory

Uh, am I audible now? Yeah, better. Uh, good afternoon, sir, and thanks for the opportunity. So, sir, you have entered the ready mix concrete business with the Pune plant starting operations in October. So, sir, could you share the plant's current capacity and utilization, and what level of volumes would be needed to make it profitable? Also, as you expand the business to other locations, should we expect significant additional investment for the working capital environment?

Dinesh Kumar Agarwal, CFO

I'll hand over the call to Mr. Anil Kulkarni, who is the Chief Business Officer for the RNC segment. He will take off this question. First question is, Pune, we have started on 1st of October. What is the current building we are doing? And what is our future capex? Anything is there? So, Mr. Sattak, see this is an acetylite plant, so there is no capacity as such in the plant. Then this is going to be our model for all ready-mixed plants that we put up across the country. As far as the capacity is concerned, the plant capacity is 60 cubic meters per hour capacity. You know, not very high, not very low.

Anil Kulkarni, Other

So, we should anticipate volumes of almost about 4,000-4,500 cubic meters per month from this plant alone.

Sathak Jain, Analyst — Desvallado Advisory

Okay. Thank you so much.

Operator

Thank you. The next question is from the line of Smith Jan from Flawless Company. Please go ahead.

Smith Jan, Analyst — Flawless Company

Yes, thanks for the opportunity. Just two things, right? One is on the promoter pledging, as the market is falling downwards, The collateral value, which is a share price, is also falling with it, right? And it can potentially trigger additional pledging or forced selling by the lenders, which can cause, you know, severe distress to even fundamentally strong companies. And like 50% of the promoters holding close to 50% is still pledged. So as a shareholder, how should we assess the risk associated with it? And, you know, suppose you can give some light on the entire picture about why is it being pledged And what is the structure?

Dinesh Kumar Agarwal, CFO

Mr. Smith, you must have seen, in spite of shares falling down, there is almost nothing additional plays has been done that the confidence lender has with the promoter. And second thing, it is not a borrowing as such. And we have to divide the plays into the three buckets. One, where there is a borrowing company. Second bucket where borrowings have happened, place has been given to acquire additional share from the market, which we have disclosed during the last quarter. Third bucket is only a secondary place for the acquisitions of a new business. Acquisition of new business, which is the substantial place, which I have clarified in the earlier call, and which will get removed. We have started repaying the principals there. A small amount of principal is already being paid. Some more parts will get paid in the coming months, and over a period of time of three to five months, that part will get completely removed. And with respect to the borrowing, there is a every month, there is a due date, and it is being paid all the installment amount, and it is getting reduced month and month, though the place is there, but it is getting reduced. And we expect the third bucket, which is borrowed money, also to get completed over a period of 12 months to 24 months completed. So, this is the, I mean, large part will get closed between 3 to 5 months. Balance will get closed between 12 to 24. And there is nothing to worry. In spite of their falling down, I mean, lenders is with us, and they know that we are paying on time every month.

Smith Jan, Analyst — Flawless Company

Fair enough. So, you know, just for our comfort, that is what I wanted to understand, right? Even if, suppose, because market valuation is not in our control, so even if it falls further by 20, 25, 30 percent, there is not a risk of forced selling by lenders which can, you know, again trigger a... That will never happen with the refrex.

Dinesh Kumar Agarwal, CFO

That will never happen with the refrex. As a business, this is going good. As a group level also, we are well capitalized, well cashed, sitting We have a holding company nicely. So, that's the reputation we carry as a group. There will not be a single share of any forced selling at any point of time in spite of any fall in the fair price, which is not under our control. But in spite of that, also, rest assured, there will not be a single share. Forget about any place selling. There will not be any single share sale from any of the lenders. We are really sitting with a very good business across the group, and we are confident about our listed company also that it will do well.

Smith Jan, Analyst — Flawless Company

Perfect. Thank you so much. I think that gives comfort. The second point, again, although you've addressed this, was the receivables on the receivables front, right? If you can, I mean, you've shared that 120 days is a typical credit cycle that we extend to our debtors. Is there a percentage of current receivables which are, you know, overdue beyond the normal credit period that we usually extend to our customers? Or, you know, everything is within line at this point. If you can, you know, just throw some shade there as well.

Dinesh Kumar Agarwal, CFO

There is a zero amount is overdue. And second thing is, there is a zero amount at a risk also, where there is a possibility of any bad death. All the collection is coming within the time. Today's challenge is only billing on time, which is the certification's text time. And because that has to be full proof with all supporting, which is taking time, where we are bringing some automation, some documentation to do faster. Otherwise, that's zero, not one rupee, also overdue, not one rupee, also there is a possibility of any better. So, business collection is watertight and doing really well.

Smith Jan, Analyst — Flawless Company

You can see from first to all. So, when we say that there is no risk of an overdue, is it because these are gone back institutes that we are going to collect from, or what exactly is giving us the confidence that there won't be a case of overdue?

Dinesh Kumar Agarwal, CFO

That confidence is delivering the execution sometimes. We are not delaying our execution, which is giving us the confidence that our collection also will not get delayed.

Smith Jan, Analyst — Flawless Company

Okay, perfect. And these are all reputed parties wherein the amount which is in discussion is not going to be a hassle for them to pay.

Dinesh Kumar Agarwal, CFO

Yes.

Smith Jan, Analyst — Flawless Company

Perfect. Okay, so thank you so much. I'll fall back in the queue.

Udash Tengel, Analyst — Pinpoint X Capital

Thank you.

Operator

Due to time constraints, we take this as the last question for the day. I now hand the conference over to the management for the closing comments.

Dinesh Kumar Agarwal, CFO

Thank you so much for the time, and thank you so much for coming into the call, asking us all the questions, and we are here to answer all the questions. Okay. Mr. Gautam Jain, who is the Vice President of our Investor Licensee, supported by Pungti. Both of them are based out of Mumbai. Anybody can reach out to them at any point of time for any further questions, any clarification. I mean, their numbers is also there in the investor presentation, and anybody can reach out to them. Thank you so much for the time.

Vidhi Vasa, Head of Investor Relations

On behalf of MUFG End Time, that concludes this conference. Thank you for joining us and you may now disconnect your lines.