CG Power and Industrial Solutions Ltd (NSE: CROMPGREAV) Q4 2025 Earnings Call dated May. 06, 2025
Corporate Participants:
Amar Kaul — Managing Director & Chief Executive Officer
Ajay Jain — Vice President, Transformers
Indraneel Dhaneshwar — Vice President, Motors Business
Sriram Rangarajan — Executive Vice President, Head Consumer Product Business
Chidambaram Balakrishnan — Vice President, Railways
Susheel Todi — Chief Financial Officer
Analysts:
Renu Baid Pugalia — Analyst
Harshit Patel — Analyst
Ankur Sharma — Analyst
Mohit Kumar — Analyst
Bhoomika Nair — Analyst
Rajesh Kothari — Analyst
Amit Mahawar — Analyst
Anupam Goswami — Analyst
Ashwani Sharma — Analyst
Vasant Bansai — Analyst
Abhinav — Analyst
Alok Ranjan — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to the CG Power and Industrial Solutions Q4 and FY ’25 Earnings Conference Call. [Operator Instructions]
I now hand the conference over to Ms Renu Fugalia from IIFL Capital. Thank you, and over to you, ma’am.
Renu Baid Pugalia — Analyst
Thank you. Thank you. A very good afternoon to everyone. On behalf of IICI Securities, we’d like to welcome the management team and everybody for 4Q FY ’25 earnings call of CG Power Industrial Solutions. From the management team, we have with us Mr Amar Kal, Managing Director and CEO; Mr Sushil Todi, Chief Financial Officer; Mr Maray, EVP, Drives and Automation and International Motors business; Mr Ukul Shivasta, President, of business; Mr Ajay Jain, Vice-President, Transformer Business; Mr Balakrishnan, Vice-President, Railway Business; Mr Indranil, Vice-President, Motors Business; Mr Rangarajan, EVP, Head, Consumer Products Business; and Mr Gaurav, VP, Designate and APB. Without taking much time, I now hand over the call to Mr the call to Mr Kahl, Amar Kahl for his opening comments. Thereafter, we can start with the Q&A. Thank you, and over to you, sir.
Amar Kaul — Managing Director & Chief Executive Officer
Thank you. Thanks, Renu and the team and good afternoon, everyone, and welcome to CG earnings call today. Starting with the summary of results, we had a solid finish of the year with all-time high quarterly as well as annual standalone revenue and PBT. Our quarter-four sales grew by 23% compared to previous year’s same quarter and the orders intake grew by 20% and PBT before OI grew at 20%, mark making it the strongest quarterly performance in recent times. For the full-year ’25, sales grew by 23% year-over-year and the order intake grew by 35% and PBT before OI grew at 19%. Our order backlog grew to INR9,909 crores, little short of 10,000, that’s what we are targeting and continues to be on an upward trajectory, offering strong revenue visibility for the upcoming fiscal year. Now as I go deeper into Q4 2025, we achieved sales of INR2,563 crores with EBITDA of INR407 crores and PBT of INR381 crores. These are the highest quarterly numbers in the recent times.
Now, if I go deeper into the details of what is behind it is the aggregate sales for the quarter was INR2,563 crores, recording a growth of 23%, year-over-year and 7% up versus the previous quarter as well. The profit before taxes before other income was higher with a growth of 20% at INR313 crores, at 12.2% of sales as against INR260 crores of — which was in the previous — previous year same quarter. Our free-cash flow generated for the quarter was INR202 crores. Return of capital employed annualized was at 37.4%. Order intake for the quarter was INR3,650 crores, which is 20% growth year-over-year. And our order — unaggregated order backlog as of 31st of March was at INR9,909 crores.
When I go to the full-year performance, our aggregate sales for the year was at INR9,329 crores, which is a growth of 23% year-over-year as well. And profit before taxes was at 19% year-over-year at INR1,181 crores, which is 12.7% of sales as against INR996 crores in the previous year. Free-cash flow generated for the year was INR727 crores. Our return on capital employed was 32.7% and order intake was at INR13,526 crores, which is 35% growth year-over-year and the order backlog as of 31st of March was at INR9,909 crores. If I double-click on the overall performance by segment, the first segment which is industrial. Our quarter performance sales was at INR1,572 crores, recording a growth of 24%. PBIT was at INR176 crores versus INR175 crores in the previous year same quarter. And the gap that you see is due to — primarily due to the commodity prices, increase in the share of railway business that is increasing at much faster pace. And also the strategic investment into the consumer durable business.
The order intake for the quarter was at INR1,893 crores, which is 2% growth with a strong order inflow in the motors business, primarily in the last quarter and our aggregated backlog of 31 as of 31st of March was INR3,290 crores. Full-year performance for the industrial segment, our aggregate sales for the year was INR5,823 crores are growing at 16% year-over-year and PBITI was at INR707 crores, just 12.1% of sales. And again, the same reason the gap that you see in the profitability for industrial is primarily due to the commodity price increase, some of it which could not be passed on to the market as well as increase in the share of railway business and the investment of consumer business. Order intake for the full-year was INR6,891 crores, which is 20% growth and unexecuted order backlog as of end of March was INR3,290 crores, which is 29% growth. If I go to the other segment, which is our power segment, the quarterly performance sales was at INR993 crores, a growth of 21%. PBIT was INR208 crores, which is 21% of sales as against INR152 crore, which was 18.5% in the segment. And these margins were high primarily because of better price realization on the execution and also the operating leverage. And order backlog for Q4 was at INR1,757, which is 48% growth and the unexecuted backlog was INR6,619. For the full-year performance, the sales was — sales was INR3,5510 crores, a growth of 35% year-over-year and PBIT was at the growth of 61% year-over-year at INR668 crores, which is 19% of the sales as against 16% in the previous year for the same portion.
Margins were higher year-over-year on account of better price realization, as I said and also the operating leverage. Order backlog for the full-year was INR6,635 crores, which is 54% growth year-over-year and unexecuted order backlog as of March ending was INR6,619 crores. Now we go into the consolidated financial results, which includes the performance of the operating subsidiaries at Sweden, Germany, Netherlands, which is and Automation, CG, Products Private Limited and CG Semi Private Limited, Electronics, Xero Semiconductor Private Limited and other non-operating subsidiaries. So the Q4 performance for the, all the subsidiaries put together, the sales was INR2,753 crores, which is a 26% growth. PBT was at INR384 crores, which is 13.9% of the sales versus 14% in the previous year. A little bit of margin impact you see is due to investment into CG semi and semiconductor business, which was the impact of about INR15 crores. Free-cash flow generated for the quarter was INR80 crores. It was also driven by INR125 crores of capex done in the subsidiary, which is CGMI.
Our return on capital employed for quarter-four was at 37% and order intake for the quarter was INR3,824, which is 22% growth and unexecuted backlog at the end of March was INR10,631 crores. Our full-year performance for consolidated is — the sales was at INR9,909 crores, growth of 23% year-over-year, PBT of 13.6% of sales versus 14.1%. As I said, the margin impact is due to investments into CGSME and Zero semiconductors impact of about INR22 crores. And free-cash flow generated for the year was INR548 crores and it was also driven by INR173 crores capex done in the subsidiary, which is CGCV. Return on capital employed for the year was 32.5%. Order intake for the full-year was INR14,684 crores, which is 40% growth year-over-year and the unexecuted order backlog as of 31st of March was INR10,631 crores, which is 66% higher year-over-year.
Some of the key events during the earlier, we had a disbursement to the shareholders agreement, share purchase agreement and share subscription agreement. We entered into agreement with Digitronics, which is called and the existing shareholder of GET, CG acquired a controlling stake in GGT with effect from August 2024, that’s the acquisition date through the combined purchase of equity shares and the convertible preferential shares for a total sum of INR319.38 crores, resulting GGT becoming a subsidiary of CG. Second, also a subsidiary of the company received a prestigious order towards the locomotive train collision avoidance system, which is called TCaaS. Also in India, we Call-IT coverage in the range of INR500 crore to INR600 crores and the scope includes the supply installation testing and commissioning of onboard coverage equipment, including annual maintenance contract for 11 years. CG Power also in the solution, also the semiconductor mission ISM under the Ministry of Electronics and Technology Government of India and CG SME Private Limited Company Incorporated for setting up the facility entered into the fiscal support agreement to avail the grant of subsidy towards the capex of up to INR3,501 crores.
The Board of Director also approved a greenfield expansion of 45,000 MBA for power transformer capacity with an investment of about INR712 crores, which we already declared. This will increase our overall capacity to 85,000 MBA by financial year ’27, ’28 and this expansion is considered to be expected demand in the transformer industry, both in domestic also cater to the exports market. And CGI also secured an order for supply and service of railway products towards the manufacturer of train sets by entering into a long-term supply agreement with the Railway Solutions Limited and the service of the railway products, introducing propulsion kits and motors, transformers and other items. And as part of this agreement, this purchase value is between INR400 crores to INR450 crores for the supply and this will be applicable for the first order of 10 Mande train sets. And apart from this particular order, it’s separate 35-year service contract will also be become as part of this agreement.
The company has declared an interim dividend of INR199 crores, which is Indian INR1.3 per share on 18th of March ’25. And the last one I have on this is the CG entered into a definitive agreement with Renaissance Electronics America and other roughly eight entities of Renaissance Electronic Corporation for acquisition of radio-frequency components business through one of or more of the subsidiaries of CG. And CG has obtained the approval from Committee on Foreign Investment in the United States and the necessary regulations and the statutory approvals for acquisition. Subsequently, after year-end upon payment of configuration, CG has obtained control over the radio-frequency components business from Renaissource Electronic America Incorporated and the eight entities of Renaisos Electronic Corporation. And the audited financial statements with detailed notes are available as part of the stock exchange filing and the company website www.cgglobal.com.
Thank you for listening and over to you, Renu, for Q&A.
Renu Baid Pugalia — Analyst
Sure, we can open the session for Q&A.
Questions and Answers:
Operator
Thank you very much. [Operator Instructions] The first question is from the line of Harshit Patel from Equirus Securities. Please go ahead.
Harshit Patel
Thank you very much for the opportunity, sir. Sir, my first question is on capex. Just wanted to check the status of our capex projects for power as well as distribution transformers. Have we finalized a line for the new 45,000 NBA capacity? Also, we were expanding this power transformers capacity at Bhopal location as well from 17,000 to 40,000 MBA. So if this expansion complete, similarly, the status of the distribution transformer capacity expansion at super.
Amar Kaul
Thanks for the question. And yes, I will answer the first one and second, I can hand over to Ajay to talk more details. The land for the new plant for 45,000 MBA, that land is almost allocated to us. It will be in only. Some formalities are being done. So hopefully next couple of weeks, we should be done with that and start the construction. And regarding our capacity expansion in existing and distribution transformer, Ajay, just give a high-level indication on that.
Ajay Jain
Yes. So regarding the capacity expansion, so it is in advanced-stage now if we talk about the distribution in. So some parts will become operational within next two weeks and the whole expansion in — for distribution transformers will be over by end of June. And for the power transformers expansion in Ghopal from 17,000 to 40,000 MBA, shop is already operational and the ovens will be getting operational within next two weeks and the whole plant will be operational by middle of June.
Harshit Patel
Yeah, understood. Just a follow-up to that. We are also planning to commission additional extreme motors capacity at Bhopal only by the end of FY ’25. So any status update on that?
Amar Kaul
Yeah. So I can pass it on to to talk about capacity in.
Indraneel Dhaneshwar
Yes, we are on-track as per the plan and that’s exactly also resulting into, as Amal said, some of the results what we talked about. We are exactly as per plan.
Harshit Patel
Sure. Sir, my second question is on our railways business. We have garnered a very prestigious order from as well for the systems. Now at the beginning of FY ’25, we had guided for close to 50% revenue growth for our railways business in FY ’25. So have we achieved this kind of growth? And given a very strong order book, what would be our plans for the next couple of years? Would we able to maintain this kind of very-high growth momentum or because of the high, the momentum could taper off a little bit. So if you could give us some broad idea about the prospects of the railways business for the next two to three years? Thanks will be very helpful.
Amar Kaul
Yeah. Yeah, I think good question and you are seeing the momentum of that, although we don’t give specific guidance on specific businesses, what will grow. But yes, railway has grown in high-double digits already. And with these prestigious orders which the team is right now busy for the R&D and also the execution excellence team, they are working on that. So if you tell me what is the plan for next two, three years is that we are playing between the domestic market, which is very, very important because we stay committed to Indian Railways. And also we are exploring the export piece of it, which the team to the moment team who is leading this business, they are actually busy building all the R&D capability for that. So we still stay bullish on the business.
Harshit Patel
Understood. Thank you very much for answering my questions and all the very best.
Amar Kaul
Sure thank you.
Operator
The next question is from the line of Ankur from HDFC Life. Please go ahead.
Ankur Sharma
Yeah, hi, sir. Good afternoon. Thanks for your time. I have three questions. First, on the Industrial segment margins and one of the things you mentioned is because of higher RM prices, there’s been some decline there. So if you could just help us have you taken price hikes or are we planning some price hikes within the motor business to kind of offset that increase in RM.
Amar Kaul
Yeah. So to your point, as you know that for our motor business, one of the raw-material is copper and that has been not behaving very nicely because has gone up substantially. So some bit of it, yes, there is a disciplined way of balancing what can we pass-on to the customer. Unfortunately, commodities is on the rising trend
Operator
Ladies and gentlemen, we seem to have disconnected with the management. Please wait while we rejoin the management ladies and gentlemen, we have the management back online with us and we’ll continue the question-and-answer session. Okay. Please go ahead, sir.
Amar Kaul
So should we start — continue with the question that was asked?
Operator
Yes, sir, we have. Okay, Rankur online.
Renu Baid Pugalia
Okay. Yeah, I can continue.
Amar Kaul
Okay. Super. So I was talking about motor business, as you know, the commodity copper is one of the key input for the motor manufacturing. Unfortunately, that has not been behaving well. There is inflation on that. On the other side, if you see IIP index for the last four quarters has been going down. If I numbers are right from 6.3%, it has gone down to 3.8%. And then also the EMA data shows that last two quarters have been declined. In fact, last 3/4 have been declining in terms of offtake of the motors. So in-spite of that, we have been able to balance that two. When I say balance that two means what. One is that we have been able to gain the market-share by getting the right orders. We have been able to pass-on some bit of it, whatever inflation has happened due to the commodity, but not everything out of that. So it’s a balanced game between the volumes and the margins.
Ankur Sharma
All right. Okay. And since you also touched on-demand, if you just help us how are you seeing demand trends on the motor side as well?
Amar Kaul
Demand trend domestically is if you go by the book comparison, I thought so great. But the reason if you see last quarter, our order bookings for motor has gone up. In fact, consecutively, last two quarters, motor orders have been going up. It’s a combination of couple of initiatives that we have and I talked about that in the last quarter as well. One is our go-to-market strategy on key account management domestically in India as well as for our exports. So both our leaders, and Maray, they are working together to make sure we have the right product, which practically every quarter we are launching two to three new products as well as the channel setup across a couple of countries where we see the potential. So everything is happening in tandem and that’s what is showing us increase in the — in the volumes in terms of orders, not really fully on the revenue right now.
Ankur Sharma
And just a last question on the consumer business. You did mention that you are making investments to kind of scale that business up. If you could just talk about how big is it right now? What are the kind of targets you have in mind? How is that kind of shaping up next? Thank you.
Amar Kaul
So today, see, as I said, we don’t give the specific number of each of these businesses, but yes, even for the last year, it has grown pretty high-double digits. But the way we have put the aspiration and I’ll hand over to who runs this is going to talk about top three things at high-level what we are doing to really scale-up this business to two different levels.
Sriram Rangarajan
Yeah. Thank you. I think it’s a great opportunity to share what is actually happening in the consumer front. So the first is, this is this year actually we are starting a laying a foundation for this business from building an organization structure, building the capabilities within you know from starting from a sales team to the back-end operations to handing the right set of vendors. So I think this year is actually going to be more of laying a foundation for a strong sustainable growth for the future because we see this business having a break of close to five years. So we have to restart the entire engine by building a brand, building a strong go-to-market and then building a strong back-end structure. In the last six months, we have been partly successful in getting the organization in-place and building a back-end in-place, we also managed to get lot of good vendors on-board. So this year, we also plan to enter into second category. So the two focus category as of now for us is pump and fans. But you must-have seen in a couple of months ago, we have launched air coolers. We are also planning to get into water heaters in a much more aggressive fashion. So you’ll get to see building the innovation to innovation. These are the stuff which is actually planning to come up in the future. So we see this business not from a current perspective, but looking at a long-term next to five years perspective, we wanted to become at least the top-five players in the electrical consumer durable sector. That’s what we are aiming for. On that.
Ankur Sharma
Thank you.
Operator
Thank you. [Operator Instructions] The next question is from the line of Mohit Kumar from ICICI Securities. Please go ahead.
Mohit Kumar
Yes, sir. Good afternoon and thanks for the opportunity. My question is on the — you won a significant order from. The press release mentioned operation kit, what you mean by the kit? Does it include only motors and transformers or does it also include converters? And is it fair to assume that this INR4 billion, 4.5 billion order will get consumed in FY ’26 and the new orders from the same customer can follow-through.
Amar Kaul
Yes as I said, this is for $0.10 train cents offsets of Bharat and this is a beginning of it depending on successful execution of this the way we will begin. So more will follow. And to double-click on what does propulsion system mean, I’ll hand over to, who runs this business., over to you.
Chidambaram Balakrishnan
Yeah. We signed a long-term agreement, which has eight years of supply, which is as per the MCMA given to TMH from Indian Railways, MCMA is maintenance from service agreement and there is 35 years of service that they have signed with Indian Railway, we got that back-to-back. So all those orders we will be getting on an annual basis, first eight transits will be supplied in the first year for which we got the order for INR400 crores. And subsequently, the next order will commit it from PVC. So it will keep coming for eight years, which will be supply contract. As said, we will be doing the systems engineering. So everything from Pantograph to the motors will remain part of our..
Mohit Kumar
Understood. My second question is, how do the central government subsidizes for the semiconductor project? Is it — is it based on the milestones on which the government released the money? Will the money be — will come in branches, I’ll come at the end-of-the period. And what is the capex plan for in FY ’26?
Amar Kaul
So I’ll pass over to Sushir, who is our CFO to that.
Susheel Todi
So in of your first question about how the money is coming from the government, it’s a based on the Pari Paso. Also understand the meaning of Pari Paso, right? It’s not about that we invest the money coming in from the government. It’s all about Pari Paso. In case of the capex investment for CGMI, we are thinking probably that the commissions of this project will happen in next couple of years, the entire commission of this project.
Mohit Kumar
Okay. Understood, sir. Thank you and all the best, sir.
Operator
Thank you. Okay. Thank you. Thank you. The next question is from the line of Bhumika from DAM Capital. Please go ahead.
Bhoomika Nair
Yeah. Good evening, sir. Sir, my first question is on the Power Systems segment. We’ve seen a very strong performance in FY ’25, both in terms of revenues and margins being at a record higher 21% in the 4th-quarter. As we are booking new orders, what is the kind of margin profile that we see sustainable over a period of time? And within this also, if you can talk about the PBW acquisition, what is the status of that acquisition?
Amar Kaul
Yeah. So on the power sector, I think we see the growth momentum continued. And so I keep talking about, I don’t see this demand going down at least for the next four to five years, not only in India, but globally as well. And that’s a very, very conservative estimate that I’m talking about. So when the demand is more than the supply, then obviously, you will have better margins reflecting on that. So that’s the answer to your first question, Bumika. And the second one on the BTW, I think that’s still under discussion with BTW because there is some end date is end of May or something before they can close the deal, so those transactional things are going up?
Bhoomika Nair
Okay. Okay. On the IS segment, you know, you spoke about the market being weak and we are gaining market-share, would it be possible to call-out market-share numbers for LT and HT Motor separately and we were working on several initiatives, particularly for HT to kind of scale-up the market-share out there. What is the progress? How are we looking at further market-share gains, if you can talk about that? And perhaps if I can just squeeze in one question on the semiconductor. We’ve seen a loss in the 4th-quarter. What is that related to given I think Renaissance should start reflecting from the first-quarter onwards. And so what should be the last number that we should look at and is this something sustainable? If you can just give some color on that, please?
Amar Kaul
So for the first question on a little bit on-market share, if you can answer that and then I’ll take silicond approval.
Indraneel Dhaneshwar
So based if you look at-the-market or the EMA numbers, the market has degrown by around 4% and wherein we have significantly grown to the tune of 12% and which is taking us to overall domestic market-share higher double-digit number. So that’s on the Alliance side. Obviously, as you would see this quarter we have launched new series also to take advantage of increased capacity and really expand our footprint not only in domestic but also target the export market.
Bhoomika Nair
And any numbers, sir, for LTHT, our market-share number,
Indraneel Dhaneshwar
But I’m not sure whether we can have the specifics on our any guidance?
Amar Kaul
Yeah. So we don’t be specific to that, but generally on the — and location motors, clearly you know that we are the market leaders there. So right. Okay.
Indraneel Dhaneshwar
So if you look at in that sense, we have grown over last year’s market-share by around 200 basis-points and particularly the good part is higher energy efficiency motors, we have improved by around annualized basis or 450 basis-points. So that’s the overall for the LT side. And even the — the — if we talk about quarter-on-quarter, that’s around 200 basis-point improvement.
Bhoomika Nair
Okay. Okay. Great.
Amar Kaul
Thanks,. And on the semiconductor piece, I don’t know which where — your question was towards zero or was it towards CGMA?
Bhoomika Nair
Sir, I mean the consolidated numbers, we see a loss of INR14 crores for the quarter and INR22 crores for the year. So just wanted to get a sense on what is that? And you know from our NSRs numbers as we understand will start coming in from 1Q, would that understanding be correct?.
Amar Kaul
So yeah, so that is basically you see both our businesses are new. These are both strategic investments. So OSAT piece, which is CG semi, that will be — obviously it is running right now. And I think the earliest because there are two plants which are under manufacturing, one is a mini plant and the main plant. If my memory goes well with me, the mini plant should be operational by next financial year and thereafter subsequently the main plant will come up. So it will be at least a year or so till we see the production out of that because it’s been set-up right now. At zero, yes, we just completed the acquisition, the team is in-place, we inaugurated the office and the lab in Bangalore. So that steam is getting up to speed. So hopefully from next quarter or something, we’ll see a bit of numbers on that. But again, that’s more into design kind of activity. So that we’ll see.
Bhoomika Nair
Understood. Sir, I have more questions. I’ll come back-in the queue. Wishing you all the best. Thank you.
Operator
Thank you,. Thank you thank you. The next question is from the line of Rajesh Kothari from Alpha Accurate Advisors. Please go ahead?
Rajesh Kothari
Good afternoon, sir. My question is on this new project. Recently, what we’ve been reading in the press that the two projects which of the semiconductor side, it is being kind of under review or there might be cancellation or they are reviewing whether to go ahead or not. So the change in technology is probably impacting the decision-making on the semiconductor side. How do you see the this to have any impact on your business? And what are your views on the changing technology and how do you plan to cover on that?
Amar Kaul
See, from our point-of-view, I mean, news will keep floating, but we don’t see anything of that sort. We are aggressively going about this and you would have seen even in my pitch, I talked about the agreement we signed with ISM, which is India semiconductor mission, the ministry. So they agreed, in fact, out of all the companies, probably we are one of the first ones to reach that stage. The construction is in-full swing. Our people are getting trained. In fact, the first batch just passed out after three months training in Malaysia. So everything is going at full swing. So we are not distracted at all with any news.
Rajesh Kothari
Okay. And with, say, next three to five years perspective, the total kind of a requirement and as per the mission, what are the requirements and the kind of capacities which are coming up, can you give a little bit broad color on that how do we see the overall competitive positioning on this, the number of projects which are coming up and from your perspective, how the industry should — one should look at it and what kind of ROC ultimately you know, the company can make on this?
Amar Kaul
Yeah. So I think it is — I mean, your question is a little more broad. I can talk for three hours on the subject. So at high-level, what I would say is right now in the investment phase also being our partner, this offtake, I think something close to 40% or 50%, whatever we manufacture here will be taken back by them. That takes care of it in the beginning itself. And second is also our sales team, business development is already getting in-place. We are hiring for that even though manufacturing is more than a year ahead, but they already started reaching out to different OEMs to make sure that we are getting those inroads right in the beginning rather than waiting once we start — once we start manufacturing. So right now, I would say it’s a completely in-progress or in-process sales.
Rajesh Kothari
Thanks. We’ll talk offline. Thank you, sir.
Operator
Thank you. The next question is from the line of Amit Mahawar from UBES. Please go ahead.
Amit Mahawar
Thank you., is it possible for us to give details on fiscal ’25 or those on export versus domestic and if we can break it into industrial and power for greater clarity? That’s one.
Amar Kaul
Hi, Amit. Unfortunately, we don’t give so much of split you know to everybody. We generally talk about high-level segments, overall how much is split between domestic and export? Yes, that is possible. Then by segment, industrial and power, that’s also possible.
Amit Mahawar
Yeah, overall export order intake for ’25 would be great.
Amar Kaul
The overall split of this?
Susheel Todi
So your question is from what point-of-view?
Amit Mahawar
Order intake breakup between domestic and exports.
Susheel Todi
I think it’s very negligible numbers in the overall numbers. It’s nothing
Amar Kaul
For the exports.
Susheel Todi
For the export side, yeah.
Amit Mahawar
Okay. Okay, sure. And our second question is more on the profitability of industrial. Now we have a large piece, which is non-rail. I understand fiscal ’25, we would have had like 30% 40% plus growth in railway revenues, which was due to execution of whole orders, which also impacted the margins. Even if I remove that, you are gaining share in you know, higher nodes, which like I3 also. So if you can throw some light on the profitability of motors because if your growth is also happening in I3, I 4 moving towards that, why is profitability not coming back-in the motors, of railways on the industrial part?
Amar Kaul
No, if you see the profitability of water again, the point is, if you look at last two quarters, it has actually started. There was a big impact about a year back. Q1, Q2 was actually it was going down and down and then from Q3 onwards, we picked-up. In fact, towards end of Q2, July, September, we started making improvements not only in the go-to-market, but also in the operations piece and that’s what has started showing up as well. So yes, as I said last quarter also, we will go back to the margins where we were at. But yes, it’s a step-by-step journey. So all the hear me?
Amit Mahawar
Sure, yeah, I can hear you yeah, the call is. I think they are reconnecting the management.
Operator
Ladies and gentlemen, we have the management back online with us. Please go ahead, sir.
Amar Kaul
So same thing I was talking about is, it’s a combination, the split, yeah, so motors will have some impact and bit of motors as well. So yeah. So any other question on that or
Amit Mahawar
Got it,. Can I squeeze in third quick one, if you allow?
Amar Kaul
Okay.
Amit Mahawar
Yeah. So in the light of recent trade tariff negotiations, you want to review and revisit your export guidance of 20% that we set-out.
Amar Kaul
You know, just that’s on it. That’s a. So I know it doesn’t change anything because primarily those tariff issues that you have is on Americas and our exports to the US is very negligible right now. Having said that, yes, the appetite is there, we are refining our three to four years plan, but it doesn’t stop anything. So nothing changes on the export strategy.
Amit Mahawar
Sure. Thank you,, and good luck. Thank you.
Operator
Thank you. The next question is from the line of Anupam Goswami from SUD Life. Please go ahead.
Anupam Goswami
Sir. Hello, sir. Sir, my question is on the semicon segment that we have taken out separately. How do we see going-forward what sort of expenses will we book on this segment? And when should we expect revenue coming
Susheel Todi
So that has Mr said in the beginning that these are two piece of this. One is that, which we recently complete the acquisition side. So we start booking the revenue from this quarter one onwards. So we don’t see any expenses coming on account of that deal. The offset piece, most of the expenses we usually keptide because the project only more about functional and admit cost. Admin cost would be coming on every quarter basis.
Anupam Goswami
Okay. All right. And my sir, next question on the motor side. Now you mentioned about muted IIT data and EMA data as well. How do we see it going-forward? Do we see a little flattish growth on this side or have we increased our capacity as well as capability to gain a higher market-share and grow more than the market in there.
Amar Kaul
Yeah. See, the market, we obviously will not comment on that. Market is what market is. Model is how are we contributing to that? And that’s exactly we stay consistent what we have performed in the last two quarters. So we’ll continue our journey, which is getting market-share gain and that’s what our focus is
Anupam Goswami
Should — sir, should we expect same kind of growth that we have seen this year or the last two quarters?
Amar Kaul
We are not — see, specific to a particular business that I will not say. I mean, we have the projections for the year and that’s what we are working on to grow. So yeah. So having said that, the market growth or not, we still have — the strategy we are working on will definitely give us incremental growth. So it’s a combination of domestic as well as exports.
Anupam Goswami
Got it, sir. Thank you, sir. I’ll join back. Thank you.
Operator
Thank you. Thank you. The next question is from the line of Ashwani Sharma from Emkay Global Financial Services Limited. Please go ahead.
Ashwani Sharma
Hi, thank you for the opportunity. Sir, just a bookkeeping question. So in your initial remarks, you mentioned — you mentioned about some impact due to new investments, somewhere in the range of INR15 crore 20 crores. Can you confirm that number again, sir
Susheel Todi
So this is — if you go to the segmental result, it is reflecting separately that the semiconductor loss which is coming around INR15 crore.
Ashwani Sharma
That’s all. Nothing else, right? Nothing else,
Susheel Todi
Yeah. That is for the quarter-four. For a full-year basis, the number is INR22 crores.
Ashwani Sharma
Okay. Yeah. Thank you very much, sir. Yeah.
Operator
Thank you. The next question is from the line of Vasant Bansai from NBC NDC Investment. Please go ahead.
Vasant Bansai
Yeah, good afternoon. So Amar, you said that you cannot give guidance about the individual segment, but can you throw some light how do you see your business going-in next three years top-line as well as the bottom-line.
Amar Kaul
Yeah. So as I said, yeah, digital is not there, but yes, each of the business verticals that we have within these two segments, we are already done with the annual operating plan, which means we are clear for this year which area, which segments which will drive the growth not only on the top-line, but also on the profitability. So that’s a combination of a couple of levers that you have. One is on the — what will you pass-on to the market and that we call top-line margin expansion. And so we are very disciplined and getting very disciplined on that, number-one. Number two is also operational excellence piece of it. How do we ensure that operationally we are able to eliminate as much waste in the system as possible because customers don’t pay for that and that’s how you become more-and-more efficient. So these strategies will continue to grow as we are progressing.
Vasant Bansai
So can you please give any number
Amar Kaul
Number for you mean the growth or what are you talking about?
Vasant Bansai
Yeah, yeah. Growth or top-line growth
Amar Kaul
Will be some specific number I won’t be able to give, but yes, it’s high-double digit.
Vasant Bansai
Okay. Now the second question is, when I compare your segment result for the quarter vis-a-vis the previous quarter and I see that in the previous quarter for industrial segment margin was 13.5% and for this quarter it is 11.2%. So there is a drop of 1.3%. So how do you see this margin trajectory going-forward?
Amar Kaul
This can only go up from there. If you see, yes, versus previous year, same quarter, it has gone down and we have put the reasons also there. One is a commodity inflation, 100% of which was not able to pass-on to the customer. And so yes, there is a material labor overhead productivity, that’s what we are working on and also opening up the doors for new areas or the segments where we have not been present. So that is where the team is busy right now to work on.
Vasant Bansai
Yeah, but it includes railway business, which you see growing at around 30% 35%, 40% and which is not very-high margin business because I heard you all know the previous con-call that you are sort of doing the help to the nation by not charging them on higher side. So the margin on your related business will be of moderate nature. So in view of that, you know, that will you be able to maintain 13% kind of margin on your industrial business segment?
Amar Kaul
Absolutely, Vasant, that’s what I said in the beginning. So it’s a combination play of different businesses within the industrial vertical. And when I’m talking about what the strategic things that I talked about, which is getting executed is not only in one business motors, it is for motors, it is for consumer products division, it is for railways. So all the leaders are in sync with whatever strategy is. So because our size of business has become reasonably big, so when the company is INR10,000 crore-plus, so obviously the processes and systems take-over and that’s what we are driving. So we are pretty confident of hitting those numbers.
Vasant Bansai
So thank you very much. Thank you.
Operator
Thank you. The next question is from the line of Abhinav from ICICI Securities. Please go ahead.
Abhinav
Hi, sir. Thanks for the opportunity. My first question is on the order inflows. So for the railways, can you comment — quantify what was the order inflow for FY ’25 and also any comment on the outlook? Secondly, for the motors, you mentioned that your strong order inflow for the quarter. Can you quantify the number for the quarter and the fiscal and also bifurcate in terms of high-tension and separately?
Amar Kaul
Yeah, thanks. And but unfortunately, we cannot share so many details by specific each of the businesses. We generally stay with the segment.
Abhinav
So any comment on the outlook for railways?
Amar Kaul
Future is right, sir. But no, on the serious note, I guess as I said and there was a previous question on the margins as well, railways. So the strategy that I said is, we are serious and committed for Indian Railways, but yes, lot of focus. The team is busy on R&D for the exports market and we are getting there very, very aggressively. Since you talked about railways, so we are probably one of the first companies who got certified by American Association for Railroads, our — to talk about some of the items are right now in American under testing, three months have passed. I’m sharing little more details than I should be just to make you comfortable. So that is till now absolutely no issues on that. That. So that will flow-through some of the orders that will come after this testing is completed.
Abhinav
Okay. Thanks for that, sir. The second question is what will be the rationale behind acquiring and what does that
Amar Kaul
Acquiring or
Abhinav
Baoding, the Chinese company transformer.
Amar Kaul
So BTW you mean?
Abhinav
Sorry,
Amar Kaul
BTW.
Abhinav
Yeah, yeah, yeah. So what — what will that bring to the table?
Amar Kaul
Yeah. So I think that is still not materialized because as I said to the earlier question, by end of May, we’ll get to know whether that is happening or not happening because there are some regulatory issues, etc., getting decided. So by chance, if it is coming, so we will have very quickly almost 12,000 to 15,000 MBA capacity added and we can restart the manufacturing. So that adds slower capacity immediately. So that would be the advantage and then it can always be scaled-up.
Abhinav
Thank you, sir thank you.
Operator
Thank you. The next question is from the line of Nayer from DAM Capital. Please go ahead.
Bhoomika Nair
Yeah. Thanks, sir. Just wanted one clarification on this Mini and the MAX CG semicon plant. Can you split it in terms of what is the kind of capacity or capex or some color on what do you mean by mini and when it’s getting commissioned the next year or what percentage of capex will be done or capacity, et-cetera? To just get some understanding
Amar Kaul
Bumita, I think that’s a little longer answer. So you’ll have to meet us separately to go through it. So yeah, because it’s not a straightforward simple question to both questions.
Bhoomika Nair
Sure, sure.
Amar Kaul
And the last is the good news is because this is the time of Board meetings, so we had the Board meeting for, we had Board meeting for CG semi, the CEO of the business made the presentation, both the projects are on-track, which is a good news.
Bhoomika Nair
Understood. And just lastly in terms of given that most of our capacities are now coming on-stream or largely commissioned. What is the kind of capex that we’ll see on our core business of Power Systems and IS?
Amar Kaul
Can you reiterate your question in power still to what?
Bhoomika Nair
No, I was just asking what will be our annual capex for FY ’26 on our core CG business?
Susheel Todi
So that in the — remain in the same range, Bumika, around INR300 crore-plus.
Operator
Sorry to interrupt you,, but I would request you to rejoin the question queue. And thank you. Thank you. The next question is from the line of Alok Ranjan from Millennium Partners. Please go ahead.
Alok Ranjan
Yeah, thank you. Sir, just one clarification on this radio-frequency component business, which we have acquired. The annual revenue you mentioned in one of the recent investor presentation is that $56 million in CY ’23. So what is the revenue number for this business in CY ’24 and what kind of run-rate we can expect from this business in FY ’26 for our company and what could be the margin for this business? Thanks.
Susheel Todi
So I — Sushil here, I think for this year, we expect a similar kind of a revenue and margins we are really not talking too much ahead of this point of time because this is just a transitioning phase. So the complete AOP and everything to be presented by the CEOs running this business by next Board meeting.
Alok Ranjan
And this will be coming up to be semiconductor segment, sir, in terms of the revenue and EBIT margin?
Susheel Todi
Yeah,
Alok Ranjan
Is a design for that. Okay. Yeah, got it. Thank you. That’s all from me. Thank you. Thank you.
Operator
Thank you. As there are no further questions from the participants, I now hand the conference over to Ms Renu Pugalia from IIFL Capital for closing comments
Renu Baid Pugalia
On behalf of IFL, I would like to thank the management for giving us the opportunity to host this call. Sir, any closing comments from your side?
Amar Kaul
No, thank you. Thank you so much for coming over and listening to us patiently and always pleasure to answer the questions. Talk to you very soon. Thank you.
Operator
[Operator Closing Remarks]