Aimtron Electronics Ltd (NSE: AIMTRON) Q4 2025 Earnings Call dated Apr. 24, 2025
Corporate Participants:
Mukesh Vasani — Chief Executive Officer
Nirmal Vasani — Chief Operating Officer
Unidentified Speaker
Analysts:
Unidentified Participant
Analyst
Presentation:
Operator
Ladies and gentlemen I welcome you all to the H2 and FY25 post earnings conference call of Aimtron Electronics Limited today on the call from the management team we have with us Mr. Mukesh Wasani chairman Mr. Nirmal Vasani non executive director Mr. Sneh Shah director sales and Ms. Nikita Shah chief Financial Officer.
As a disclaimer I would like to inform all of you that this call may contain forward looking statements which may involve risk and uncertainties. Also a reminder that this call is being recorded. I would now request us request the management to run us through the investor presentation for the half year ended 31st March 2025 and the performance highlights for the quarter and the year that went by post which we will open the floor for Q and A.
Over to the management team everybody can you hear me well? Yes,
Mukesh Vasani — Chief Executive Officer
Yes all right. Actually some people may be from other part of the world also so I say namaskar so that’s my favorite word. I’m so happy and proud today to share that you know we have a very good result and you know because thanks to the team and thanks to the all the community investor you know professionals really appreciate your support.
Thanks to actually entrant team also that we meet the expectation. Yes we have some queries and some questions that was we had some last time also because you know we are evolving process. Correct. So in this year also we had a lot of good things which you know each team member will share but you know a lot of queries because we also changed some of the standard also on accounting ways it’s not typically standard but last year’s versus this year we added some more structuring of the balance sheet and PNL statement so you can see some differences and queries also we can resolve today and we are here to answer all the questions.
I would like to also thank you Nirmal Rasani who came all the way from us to specially meet this investor connect and also he is the one responsible also meeting on the manufacturing team or the operations lead and meeting few key customers also so he. Is, you know, involving on the India business too. So let me actually give Nirmal first so he can just introduce first himself a little bit, you know, about his journey and then I’ll, I’ll take it again from there. Nirmal, you there?
Nirmal Vasani — Chief Operating Officer
Yes, I am. So it’s very exciting for me to be here. This is the first time that I am, if I’m recalling properly that I’ve had a chance to come to India to address, to meet with everyone and, and really thank all of our investors for all of their support since we did our listing. And so it’s, it’s a great pleasure for me personally to be here.
I have spent quite a long time understanding Aimtron. I’ve been with the organization since 2012 and I’ve gone through and done all of the tasks that operation is responsible for. I’ve gone through and done the creation of our presentations from our marketing role. I’ve talked to customers, I’ve been very customer facing, I’ve been development facing, working with projects that are design oriented or engineering oriented in nature.
And now I’m able to take all of that experience and really culminate that into excellence and operations for the entire Indian organization. And so for AEL and for me it’s both a very exciting step in our journey forward and I’m very proud and happy to be a part of it.
Mukesh Vasani — Chief Executive Officer
Thank you Nirmal. I think everybody’s excited to see the result and ask some questions. So we’re going to jump on to you know SN who is actually a proud moment that who is also now a director and board member is a full time director now. So Sne Shah, you know you can take the lead and do some presentation and then maybe we can involve our financial, you know, team also whenever you need it.
But let’s hand over to Snake first things.
Unidentified Speaker
Thanks Mukesh and Nirmal. So to give you a brief like about M Drone we incorporated or started in 2011 like 11 to 14 in one company in the RPMises with one SMT line. And then year on year we had a good progress down the line and then today we are at almost a teenager size where like 2,014 we acquired one piece of land and then we started our own facility in Wagodia GIDC which was inaugurated by Vajubaiwala.
At that phase of time he was conducting.
Unidentified Speaker
Nataka governor and then 2018 we achieved 20 crore and then probably down the line we like went up to 50 crore in 21 and 23. Like we integrated design centers across Vadodra and Ahmedabad. And 2025 we started last year like the MTRON Texas facility. Just to ensure that whatever like US business are there gets diverted through our like wholly owned subsidiary of mtron India. Its 2011 onwards like we have been as an term as an ESDM that is electronic system design and manufacturing where like we provide one stop solution starting from say concept to design.
Design involves like hardware firmware, mechanical test development, test fixtures development, you name it and we do it. And then once design is ready goes to that we take it up to like production till like a complete box wheel system integration where it’s like plastic or sheet metal or die casting or whatever it would be wire harnesses and all that.
So we in short provide a complete one stop solution on that front with our certifications that we have. There are global standards which approved us as Mtron to serve in that particular domain. So for instance like 13485 is for MedTech and like 16949 is for specific to automotive. CDSU is just like making it the initiative under like government of India who is promoting CDSU for all manufacturing across the globe for Medtech projects. So we do have a couple of our customers for their product.
We have taken up this certification and then we have CSA that is Canadian Standard association which approves us to allow us to do business in that particular region where we are even serving a complete UL product. We even did like in internal audit for AS10100 has already been initiated and in this Q1 probably we’ll be able to close that as well.
Which I think last business updates we already shared on that. So with this new SMP line coming up in November last year and it’s now full fledged and full fledged operation. That is where like we see this tremendous growth in terms of revenue for last quarter previous quarter and then we have like around 40 through all stations and then three Boxville lines.
And the current like machines they are advanced state of the art machineries latest available in the market which can place AI based or IoT based chipset or anything beyond that as well coming up in like new technologies like O201 105 bit of a more technical terms but in future also which kind of small components are going to be get released which are under like R D also can be placed with our new machines that are equipped this is a brief of like, what we are doing.
Unidentified Speaker
Doing on PCB assembly, cable assembly, sheet metal, magnetics, machining, plastics where like complete system integration is something that we eye on pes Mukesh or if you want to take it up on this. So I think what we need to go a little bit more faster sn because we have more questions and answers.
We need to put some more time. So mostly this presentation on the already on the website so they can see product catalog we already seen a little bit. So we can just move on to this. Let’s move on one more time. So whatever new lines we added this time is there network security. We got a big order you know as of you know yesterday.
So you’ve seen that, you have seen this sweat analysis also maybe on this one we can spend some time snare we can go there and know strategy for growth. If you want to spend a couple of minutes on this one, sure. I think in terms of diversification to what we have like end to end solution, PCBA and box build.
So PCB as of now is still contributing around 75% and box build somewhere around 27%. And probably down the line like this new financial year a domination of box build will be much more like it will be almost around more than 30, 40% and above. And to what growth trajectory we are running it. Last year also we proved that it is going to be beyond that.
And that is getting reflected in our numbers as well. Because if you see year on year it’s almost 70 plus growth in terms of revenue. And even pad has almost gone double from last year. If you compare year on year and down the line like for this year if we say then automobile we already cracked one good order.
And mass manufacturing probably has started from this month and telecom to what to make orders we have like closed into telecom and network security. Probably like from next three months onwards that execution. So this is a new domain that we have entered along with aerospace and defense. So last year if we say we entered aerospace, defense and telecom and this year now we entered into network security as well.
So these three sectors apart from this last year’s drone industry where we committed that next two years we are rang at 10 million hours of business. So on top of it this three also sectors are going to contribute for this year’s growth. So if we talk about this second half of the year then this new SMT line which was operational from 1st to November played a vital role.
Unidentified Speaker
Role crucial role in catering our increased demand from the existing as well as new orders for last financial year and the wholly owned subsidiary that we started the business flow from there also has been initiated and down the line this year also we are eyeing on that particular because of this uh tariff situation.
Uh India is on the hot spot now and uh because of that uh as of now also this uh like as an alternative to China or China plus one strategy we already closed on three key projects that is from concept. So we are going to develop a product for them which they were getting it done somewhere around the world and now they’re looking out for the alternative source.
So we did agreements with them where like product will be developed from scratch and probably like next three years down the line that two, three projects are going to contribute around about 5 million USD for our Entran India and they contribute more on IoT and industrial IoT and power electronics as a sector and to what we stated in terms of new industries.
Telecom we already entered now Automotive we closed on one big order for mass manufacturing specific to electric vehicles and aerospace and defense is something that what we committed for AI in q first half of the year that we are expecting one 1.8 million order. So we already received that order and now it’s under execution.
And to what strategy we discussed on before like in like first half and last year that certainly box bill contribution is slowly and gradually going to increase. So that is also getting reflected in last year’s result. So to addition to snails we have a very good benefit. We actually for Aimtown is a golden time. It’s not if we don’t want to say tariff is good or bad.
I’m not you know, you know talking about a politician way. But we both you know in a both world you know us and India we have a very solid infrastructure. So currently we are seeing lots of activities in RFQs. You know current RFQ pipeline itself about 80 to 90 million dollars means you know around 800 to 900 cr rupees.
You know on that much new RFP pipeline is flowing through right now and everybody like a huge contract like a huge customers. You know those customers they, they don’t want to go to China, they don’t want to go direct India. They want us to Indian you know price Indian way. But they won’t you know ship from Chicago.
So that is the benefit we have. And, and we are you know banking on that. And I think it’s a very good opportunity we have at this point. Those three contract we have all three. One is from electrical, electronic power cabinet type for customers. And it’s almost we started development for them already we can.
Unidentified Speaker
Got the first PO and we started tooling. There is second second one drone customer you know we had last time we show you that is already in a first phase of beta version. And on the third customer is also in a sensor. So all three customers, almost 10 million each, you know, in a three year span.
So almost 300 crore worth of business. We are talking in three year span just for new initiative from ESDM. Initiative. That’s what we can use a little bit more, you know, a better balanced margin and markup. So, so I think that’s, that’s the benefit we have in the tariff side. A lot of customers, you know asking us to use our India infrastructure to avoid, you know, to mitigate the tariff.So we’ve been proactively working with our customers. For all Aimtron Electronics customer in you know, US and North America we are proactively working with them and finding a solution, working with, giving them a solution. One of the customer, they came to us also. They, they once they are bringing the whole cabinet from China but they want to build us the cabinet from here.
The whole slot cabinet they want to build from us in India. So they are coming next month and see the facility and approve this. So, so that’s the process going on right now. So, so we have a lot of, lot of a good way of balancing the tariff situation now the fully loaded, you know, questions and you know, you know, excitement.
So maybe Nikita, you want to take the lead and, and or viral. Whoever wants to take the lead and, and share the result please. Nikita, you there? Nikita?
Unidentified Participant
Yes.
Mukesh Vasani — Chief Executive Officer
Yes. Okay. Okay, good, continue.
Unidentified Participant
Yeah. Okay, so my screen is visible. Yes. Not your snare by sneer. Yeah, continue here. I can speak from the existing screen itself. Okay Nik. Okay, good to see if she wants to show her results. So that’s why she can show a lot of questions we can solve.
Unidentified Speaker
Okay Nikita, continue.
Unidentified Participant
Yeah. Okay. So for the 31st March 2025 we have achieved 158cr total revenue from the operations. Total expenses were 129 and we stood at the PPT at 3212 lakhs for the financial year 31st 2025. And the PET was 2573 in lakhs. So which is the 16 percentage of the total turnover.
Unidentified Participant
2025 and the pad was 2573 in legs. So which is the 16 percentage of the total turnover.
Mukesh Vasani — Chief Executive Officer
So maybe sn we can start a questions over here first and well while this balance sheet is open so we can. We can start that way so because we can. You know that’s a anxiety we have everybody so we can use that one first. Okay let’s. Anything you want to conclude first before we go on a question answer?
Unidentified Speaker
No, I think so let’s move to Q A.
Mukesh Vasani — Chief Executive Officer
Thank you everyone. I really excited to see you also we have a in person meet tomorrow and most welcome in the last minute also if you want to see me and both you know in person will be there to answer any more questions tomorrow. But let’s start this question now. Have your team moderate please.
Questions and Answers:
Unidentified Participant
Thank you. We can stop the presentation. All those who wish to ask a question may use the option of raise hand and we’ll invite you to ask your questions. We’ll take the first question from Agastya. You can go ahead please.
Analyst
Yes. Thank you very much for the opportunity. Mukeshi. Congratulations on excellent numbers, sir. First of all I have a couple of suggestions. One is if you can also provide going forward a yoy number for the same period whether it is quarter on quarter or half year on half year just to. Just to see the seasonality effect if there is any. That would be just a small thing.
So second is I would also request you if at all possible if you can start giving quarterly numbers on your own. I know SEBI regulations are different but six months in such a volatile period. Because here the government policy in US and also in India it changes on a dime within few days. So six months is such a long time not hearing anything from the company.
On the performance side, if you could give quarterly numbers or quarterly commentary that would be of great help to all of us. Please do it voluntarily. I’m sure you will become a very large company one one day. It’s better to start inculcating all those good practices. Right. Right now.
So moving on to the questions, one is a follow up on on what you mentioned in your opening remarks that there are a number of class reclassifications in the numbers. Sir, if you can take us through those. Because when I look at the balance sheet and the P and L a lot of the line items have moved completely out of fact and a lot of them are not making sense.
So I’ll list down what I couldn’t make sense of. One was the employee cost. Reducing even though your turnout turnover has increased so much. The gross margins 23, you were at 34. Last year you were at 38. Now this year in FY25, 25 you have moved to 27. Then other expenses also there is a quite a dramatic decline there. Again, I’m talking about annual numbers here and in the balance sheet also I see a large jump in payables and receivables. So even though your net working capital seems to be under control. No, no problems there. But the gross numbers, they have moved dramatically out of that. So how much of this is accounting? How much of this is probably product mix or new customers or some. Some extraordinary circumstances or delayed payments or. Or any problems as such? Because there is very little information available. I don’t have the right question to ask you. So it’s a very like a motherhood statement and a very broad question. If you can take us through that, that would be a great help. And so another suggestion, if you have done a lot of accounting reclassifications, kindly come out with a simple press statement saying what these are and what are the adjustments. So like, like to like comparison for the year and for the half years just to compare so that we know in which direction we are going. So as we are scaling up, for example, what will happen to the fixed cost today? I cannot make head or head or tail of what is going to happen to the cost structure as you move forward. So that is the first large question and the second smaller question is you have given a guidance of 40 to 50% CAGR going forward. But you have also announced a large order today and the commentary that same I just took us through. There are a lot of additions that you have done right products and capabilities. And also the landscape has changed as you were mentioning. So how do you see the next couple of years panning out? Are you going to increase your guidance? Is the visibility better for you in terms of tangible growth which can happen in a very short to medium term as in the next couple of years. So these are the two very broad questions. Thank you very much sir.
Mukesh Vasani
Really appreciate. Agathaji is a very, very good, you know, questions. Really appreciate your request. Also, you know, intron is a kind of a journey, is that correct? So we never thought about going public and we started public and now we are public. So we, we are, you know, now developing along the way, you know, right people at right place.
So we last time we announced that we hire advisory board. So we have now advisory board. So after advisory board one of our ca. Mr. Divyakan Zaveri. He suggested that our financials should be reflect what we are doing on the floor, which was learning curve for us. And so that’s why we had a last minute, last. Of changes yesterday after you know even board meeting we had some changing for first one example I think you see employee cost. Nikita will give you every single answer we have every single have. We have all answers for you. So that’s something I would like to just you know give you that the way we you know put it the new financial is a little different. You know it was the last moment and also we are excited to give the result little early which could have taken one week extra and then do everything and and then put it together. But yes your comments is really appreciable and next time I think we should give actually Vin also suggested that we should give some small press release also where you make some changes in a standard format. So we should do that. So definitely we will from there regarding this know market culture type of American quality type of people so telling right now 100% growth versus you know current situation, current tariff situation. But yes we are planning to give but maybe snake first give that first answer and Nikita can take it for second answer. So sn you want to take the first answer from Agastya Ji
Nirmal Vasani
Sure. I think very well question and to add on to what I stated like as being evolving phase there are heads that has been changed in the like balance sheet. Just to give you an example like initially like salary and wages were together but now say like just an example to add on to that salary and employment and wages are part of cogs.
So that is how like things have changed as of now. So what we did last year was like from private limited to limited. It was first experience for us. Now divyakand as a part of advisory board today unfortunately due to some urgency could not be part of today’s meeting.
But then now based on his experience he has been working with like all tier one companies and like to what we are at in next three years is main board two years now one year is already done so that main board journey. So considering that like quarterly results and all that we are already eyeing on that front as of now it’s too early to say something on that.
But that is the prime reason that structures and heads have changed like rest all are in line. Nothing to worry on that front. And to what business aspects we are discussing on probably that 40 50% this year also see if you see it’s a 74 year on year increase to what we are ranked at next year is probably you can say more than 270280 more than that for next like this current financial year and to what open order book we have.
I think we are confident enough that we’ll be surpassing that. 270, 280 plus as a number.
Analyst
Understood. That’s a. That’s a healthy acceleration. As you mentioned, you have moved part of the employee cost to cogs. So that’s a very strange choice. But I’m pretty sure you have a good reason for that. So then we definitely require like to like comparisons and also a press release describing what all has changed so that we can have a good idea. Because then it seems that the gross margins are not comparable and I should not be then worried why the gross margins have dropped so much. So that’s not a valid question. Again, I do not know what is the impact. So if you can just provide all the changes that you have done in a press release so that everyone can understand what exactly happened, that would be a great help. But if you could briefly take us through all these changes, we will appreciate it. I’m done for from my side. I’ll go back in the queue. Thank you very much.
Mukesh Vasani
Thank you. Yes, we will definitely put a press release within a short time and we’ll share it to everyone. I think sn give one example. There is so many examples, you know, like after new SMT lines the our production went, you know, from three times more than you know, we used to do, you know, 200 words. Now we are doing 600 words in same line.
So it impact on revenue increase and lower, you know, employee cost also. So there is two way you can lower the cost also. I think there is so many ways you can explain and we will put all these numbers in the right direction in a right format. And so then a very simple thing. Whenever you come out with a press release, I hope it is done as soon as possible.
But if I look at the pat percentage, right, the pat margin that should not be changing at all, right? There could be some changes in EBITDA percentage also, but pat percentage should not change. And you guys have reported around 16 and 16.1% so that number is that sustainable.
Unidentified Participant
And the EBITDA margins that we have seen this time in this half, so you are at 19%. So is that sustainable and is that comparable to the 25% that you were doing earlier? Was there any pressure on, on the cost or, or, or product mix which led to lower lowering of EBITDA on a comparable basis?
Mukesh Vasani
So I think the path is going to be sustainable for sure.
Unidentified Participant
Okay,
Mukesh Vasani
I’m pretty sure if it is olafc, you know, if that will be changed as you say, because we’re gonna put more automation, more AI based, more things. So, so it will save some costs. Also regarding your overall, you know, the current market scenario, we also, you know, when we stayed first time will be, will be there around 16 plus, minus 2 to 3%. That’s what we said also.
Unidentified Participant
Okay,
Mukesh Vasani
What happened? Let’s see, in this quarter or these half years, we have a lot of a different segment of business, let’s say, you know, one segment called defense. And, and, you know, we have a defense segment, we have a higher margin, so. So at that time what happens that defense margin in that half year or that quarter will give you a better, you know EBITDA better margin versus the next year. Let’s see this quarter maybe we have a very heavy in telecommunication or automotive so it give you a lower margin. So if you look at year over year I think that’s the best option for ems. But I know you have and we are committed to give you know once you go vanguard anyway we have to go that quarter or quarter. But definitely take your suggestion very, very seriously and and we’ll definitely make it happen. You know next time and next time before we you know, you know publish the result, we take one extra day and make sure you know we have a press release and everything all together. If any changes.
Unidentified Participant
Thank you.
Mukesh Vasani
There will be some changes every year because we are still in you know SME phase and we are still learning phase. Until you domain more you will see some more changes and some more you know learning curves. So.
Unidentified Participant
Thank you sir. Thank you. Thank you.
Mukesh Vasani
On a lighter note I thought you would appreciate us sharing the results before on time than what everyone expected. Definitely. I. I am sure any company which doesn’t report the report on the last day there will be at least 2 to 2,500 jokers who will report on the very last day.
Unidentified Participant
So I appreciate that. I also appreciate the progress that you guys are making and thank you for giving me time. I’ve taken too much time. I apologize to everyone. I’ve taken too much time. So thank you very much. All the best.
Operator
We move to the next participant. Sridhar Jadav, you can go ahead please.
Unidentified Participant
Hello. Good evening sir. Congrats on a good set of numbers. Sir, I agree with Agastya what he mentioned. But just till on a broad basis till EBITDA even if I look from an H1 to H2 basis I can still see a stark 6% drop in margins. So would. Would so just wanted some clarification on that front because below EBITDA the numbers are not very significant.
If I see finance, depreciation, other income etc. SNEH you want to take.
Mukesh Vasani
Sure. So if you certainly see like already like clarified on that front that it is going to be mix and match in terms of sectors when we are running on scalability. So now next year just an example when we are trying to like from 158 to be when we are trying to go to 270, 280 plus and at that phase of time particularly if you see then there is going to be mix match, mix and match on that front that some may be on a lower margin, some maybe on higher margin.
So it’s better if we go on quarter to quarter, like half, first half of the year versus second half of the year and the full year comparison. Because if you see like the year on year comparison, the pad has been almost double. If you, if you compare on year, on year basis, in terms of value, that has grown by 100, revenue has grown by 74%.
So if you see on that front, growth, we are on that growth trajectory. But yes, if you talk about sustainability, to what Agastya stated this is something now sustainable margin that we are running at. So if I understand correctly so going forward my mix of order book, so my product profile and the kind of orders that I have will going forward dictate my margins broadly. In some quarters it would be like I would execute higher margin products. In some quarters it would be like more bulk based orders but on a broad basis sustainable. 15 kind of pat margins is the, is the guidance certainly yes. So like might be the case that first half we may have like some. This is just an example like last March what happened because of this tariff uncertainty. A lot of U S We could have just an example. We might have gone to 170, 175 as well. But then because of this tariff uncertainty some of them pushed it till they get a clarity and some of them they were like you can like ship well in advance because they don’t have clarity on what exactly the tariff would be. So I’m just giving a layman language understanding example. Don’t take it on a like exact basis but this is how it would go. So like if you. But if you see on year, on year and a half yearly basis this margins are something that are sustainable
Unidentified Participant
And so coming to, coming to the product mix. So box build would typically be an end to end kind of a, kind of a solution. So typically it would have higher margins. Is that understanding right?
Nirmal Vasani
You are muted Mukesh.
Mukesh Vasani
So you are right. You know end to end product has a very higher margin. And that’s also another reason also some have, you know we, we predicted this time that this product should go in market first versus you know automotive or other product goes in the market. So that’s where the you know it’s, it’s not easy to predict in a you know the, our mix, our mix is still you know smaller, smaller value is the correct.
When we are thousand crore then it’s 5 crore, 10 crore, 2500 crore order will not much difference right now. It will imbalance because you know we are still at 300 crore or 200 crore or whatever. Snape I say number, you know that level we are right now. So that buys you know maybe one more year you will see this little bit, you know up and down.
But once we go that higher range, you know next year or year after you will not see that much fluctuation. But one thing we assume, I think there’s a margin is will be you know that will be sustainable for sure. Yes. Maybe you want to add something more onto this that’s what I would like to add.
Nirmal Vasani
Sure. Last, last thing to add on is like if you see, as I stated before as well, this one new financial year, probably it is going to be more dominated by. Box build as compared to last year. So you probably again you might not see that significant rise in first half of the year but second half of the year to what visibility we have that will be a significant rise in box build solutions or a complete product box build.
Unidentified Participant
Okay and my last question on tariffs sir. So currently what are the tariffs on your Indian manufacturing and going forward how do you, how do you see situation evolving? Are there any industry talks with the government? What are the kind of typical in. In percentage terms we are expecting an impact on the business and how much of it would be neutralized by additional orders coming from China plus one kind of a strategy.
Mukesh Vasani
So I’ll start a little bit snay and then you can add on this. So currently EMS business we are working with our customers and you know preparing them. We are in a service business. So we our direct business current order will not affect at all for so in EMS business the tariff impact or any other impact was next year because you know we already have an order book.
Let’s say it was approximately 200 crore plus, you know so that’s already booked, is that correct? So you won’t see that much different on this current financial year. So we are preparing though our customer how to find a solution. Let’s say they are buying some. We are only sending one customer only PC board assembly and they are buying metal from China.
So we give them solution. Why don’t you buy metal from us Also so wherever PC board you are paying 10% extra. So we’ll help you to mitigate, you know relieve some of the stress and from bringing from China versus India. So one of the customer we did about 70 different part number we just developed last only two months I believe is correct.
In the last two months we believe we develop those parts and we give the solution to our customer. So we give them a balance solution to mitigate. Yes, we are talking with our IPC association. We are in a constant touch with our, you know, you know all these related bodies, you know and then we are trying to figure it out how you know we can make it that also another reason you can see our last quarter, you know last three months of quarter four we had a spike in the you know pushing push, push like government, you know April 2nd was a terrible.
So give me, give me, give me. So that’s another reason why we have so much ar, you know. So that was the question was you know one of the question came up so why you have a imbalanced number or you know that’s why we had to push our shipment. Also we did ship a lot of things before even end of the year.
So that’s why. But again, yes, we are working with mitigating the tariff. We are also working helping customers to find another solution. Some customers we are getting right now getting In China. So they are looking and as I said we have almost 800 new inquiries floated in last just one and a half month. 800 crore worth of business inquiries right now. And those of you not even any forecasted or not even counted anywhere in this discussion today. Also also I would say like India is in sweet spot as of now with this tariff situation because now everyone is eyeing at China Plus one strategy where like they arrang at India because Southeast Asian countries also now they are well aware and they are also going to face much more tariff than us. So I would say India is in sweet spot as of now and we already have started leveraging that by signing up three agreement for design that we stated before so that the design probably it might not intervene you for this year but then it is going to help us out because one project we assign exclusivity with the customer where once we develop their product they are bound to take for with MTRON in next three years of time frame. So that is, that is a one China plus one or tariff strategy itself. In parallel also we are doing Indian business too.
Nirmal Vasani
So local business mean Indian other MNCs. And so that’s also we are growing right now and that is our dream too. You know parallel we can grow both business.
Operator
Thank you. I would request participants to please limit your questions to two since there are many in queue. Deepak Podar, you can please unmute and ask a question.
Unidentified Participant
I’m audible.
Mukesh Vasani
Yes.
Unidentified Participant
Okay. Okay great. Thank you very much for this opportunity. So just first of just a clarification. I mean you mentioned our, our 500 basis point drop in our pat margin on a half an hour basis is is largely due to the mix and match of different sectors in terms of revenue. And there’s nothing to do anything with the pricing pressure or anything else, right?
Mukesh Vasani
Yes, it has nothing to do with like profit margin pressure but it is because of mix and match. Like we are still in a phase where like we just ensure that 25 30% is something that is getting contributed by each sector and like diversification is something that we are eying at. And just an example we added like two, three sectors last year.
Still this year we are going to add two more sectors. So that is how like we are ranked. So it will be a baggage of mix and match and and given your bulk built revenue mix will go higher. There will be upward bias on these margins. I mean as we go ahead margins I would say like this margins are sustainable1.
So this is something that sustainable margins will continue for this year as well because there is going to be a contribution of box build more this year as compared again. Then don’t start comparing with the first half of the year. Wait for this complete financial year because that box build activities like. Will start from second half probably and to what we committed last year as well last financial year. We are going to add one more shift probably after Q1 somewhere around in Q2 and that is going to help us out to increase our like productivity and efficiency to help us to meet our numbers. And when you say sustainable we are talking about 16% pack margin. That’s the number we talking.
Unidentified Participant
Okay. Yeah. So am I this another question is on receivables and why our receivables is so high. I mean it was around 40 days as of FY24. Currently it is close to about 200 days.
Mukesh Vasani
Yeah. So if you see like this data was as on the 31st of March and like just an example I’m giving again to whatever it shipped in January or Feb probably like we’ll start receiving or we have already started receiving that funds in this month. So once like anything is shipped to like their end site or customer once goods reaches the like destination post that couple of customers we have the payment terms.
So once we ship it to us after that they receive it once they do the IQCR quality check after that they will start the payment cycle. So that’s the prime reason it. I. I don’t think so. That is something to worry because we have started because this Data as on the 31st of March and we have started reserving.
If I talk about as on today then we have started receiving the funds and these receivables have gone down significantly. But your payment cycle with us is Generally how much? 2 months, 3 months again depends from customer to customer order type, order base. So there are several factors affiliated with that.
Again just an example like Denver Group they were standard payment terms of say 75 days. So for Amdron they might not change it. They are global suppliers. They have a global like like their own process. So they will not they we have to accommodate in their system. So we do like accommodate that like somewhere around in the pricing structure itself.
So I believe that is something that we take care prior to sharing the courses.
Unidentified Participant
And just one final clarification. The 800 to 900 crores of RFQ that we so how much conversion we are expecting in how much month
Nirmal Vasani
Question I would say yeah, yeah. I think if it is so this is something we’ll give you in a like one quarterly you know update this time maybe in a quarterly update we can give you may not we give you a quarterly result but quarterly update we give you that little bit more you know up to that mark information that let’s say I’ve raised the question also request also.
So normally this kind of customers Again, as I said, we are still 150 corrodes. Correct. And next year maybe still. Let’s see. Whatever. 280. What’s next? Number plus numbers. Whatever we have. Let’s see one. Customer comes as today this last customer came is 128 crore. Just one customer. So it’s going to be imbalance everything. So giving a ratio is not a right approach. But I would like to give you some heads up. As a thumb rule 20 to 40% is a winning ratio. We have on an average again you know one customer, big customer, we win then it’s going to give you, you know even one quotes. Maybe a 10 million quotes is going to imbalance. You know if I say okay we are winning ratio is 50% there is going to be imbalance. So but you can just a thumb rule 20 to 40% you can see is the winning ratio. Normally in this EMS industries around 20% global. Everybody’s winning ratio is there. Every single EMS supplier.
Unidentified Participant
That’s very helpful. I think that would be it from my side and all the very best. Thank you so much.
Operator
We’ll take the next question from Manan Madlani. Manan, you can go ahead please.
Unidentified Participant
Hi sir, thanks for the opportunity. My question again is regarding the margins only. So when I compare H1 to H2 the breakup that you have given so major change that happened is in industrial. So last H1 it was 56% of overall revenue. In this half it’s go down, goes down to 36%. That’s the major change I can see. Along with that our box build share has increased from 20% to 27% and end to end from 2% to 4% broadly.
So despite our box build, you know segment share gone up, why the margins are lower.
Mukesh Vasani
So SS Manan stated before as well again it’s a mix and match of sectors industrial no doubt like. But if you see that there are other sectors that has grown like Iot if you see then if you compare year on year or first half of the year to second half of the year that has grown and there are a couple of other sectors in a similar way out.
So again this year also like contribution of Boxville is going to be much more as compared to last year and to what margins have been there. It is going to be sustainable for this new financial year as well.
Unidentified Participant
Okay, let me put it differently. So Mukesh, you always mentioned that Medtech and defense and all these segments have higher margins, right? So if we compare last half to this half their share has increased. So why the margins decrease instead of increasing from what we achieved in first half
Mukesh Vasani
In MedTech also there is a different kind of product, is that correct? So one of the sensor product we make in Medtech it’s a smaller box. So it’s category wise. Guys, I think little bit offsetting the way but as SN said we will, we will sustain you know a minimum as I think we are in still range. Last time also we said 16 plus minus 2. So if you see when you go we have a little pressure raising the team, you know, adding infrastructure, you know, getting you know whole setup going on. So there is a lot of things going on. So maybe the first year you can see little same way. But within one year it will be stabilize everything. And after one year you will see a standard, you know, some standard about intron that this is the margin business. We’re going to take it right now what happens, you know, let’s see. In a 200 crore business, 250 crore business there’s a one one order was telecommunications the correct last year was 30 or something. So part of the shipment goes out it will imbalance the margin also Even though that’s a box, it’s a correct router. But router has a maybe 15% margin. I’m not sure exactly, I don’t have a number versus defense has maybe 22% margin. So it’s going to be balanced out. But it’s again you know, as I said, I’m totally transparent and not fabricating anything. It’s kind of a nature of EMS business that it’s very hard, you know to go by compare by line by line by line. So in short, yes, we’re going to make sure that we do not want to take some business less than certain percentage. And that’s what we will make sure. And we will not take those. But we’ll sustain the margin whatever we promised so far and we’ll keep it that way.
Unidentified Participant
Okay, and this 15 crore CapEx we are doing in the US subsidiary what would be the purpose of that? And in this 189cr order book, is there any order from that subsidiary? As of now
Mukesh Vasani
We are expecting and we already have one of the contract. We said three contract. We have all three foreign contracts. And those are the customer. They do not want to come, you know, directly to India. And those are the customer. We do not want to also go through Intron Corporation, you know.
So that is the reason we are, you know we created that subsidiaries those orders not in our order books because we have just a contract. Contract means we signed the MSA Master Service Agreement and we got the POS for the only for the tooling part. So one let’s say one customer gave us a PO for $180,000.
Just the plastic mold tooling the whole project is totally 23 years about, you know, it’s, it’s going to be at 20,000 per month. It’s going to be around 10 to 12 million dollar business. So but we do not count as a. Unless we got the PO in our hand, we don’t count in that. So that’s why. But yes, those Imtron, you know, Electronics LLC through, you know, we will do definitely, you know. Sizable business. Last time we already said about 50 or sorry yeah 50 crore 5 million to 50 crore range and we’re gonna do plus this time and we already now seeing even more opportunity that that could be double or triple we don’t know yet. It will definitely give you some range.
Unidentified Participant
No. So this 25cr is this going to spend on the manufacturing side or what what
Mukesh Vasani
Over there those 25cr is just. We took an omni approval so it’s not required right now. Right now we don’t need money there at this point but we are also looking as you know we had our last time question what is your MNA strategy? And you know so we prepare ourselves.
Let’s see something happen and we get a maybe you know they are thinking about there might be some a recession effect comes in us and we can find a good company also we can pick up that under Intern Electronics llc. So we’d like to keep prepare for that. You know so we don’t have to go right away board meeting and get approval and everything so that’s right.
We don’t need that money right now. It is just an approval right now. But in future yes that money will go as a. If we’re going to do something we’re going to do as a either part of MNA or part of Capex to start some you know manufacturing let’s say customer insists us and say okay now we have to have under internal electronics presence over here and then we’re going to give you a 10 million wor subcontract then might be at that time we have to use that money but at this point we don’t have any other extra expense other than we hire one a sales office in Texas and that’s what we have right now.
Unidentified Participant
Okay and what’s of what sort of hiring we did in H2 and what’s the plan for next year? Full year?
Mukesh Vasani
That’s a good question for you. So in terms of number I think would the check in he be posted with business updates? I would say but there has been rise in number of employee if you talk about first half and second half and year on year. I know the next question coming up would be in terms of why expenses are less as compared to last year but the reason for that is we have changed the heads of and bifurcation and to what first question we stated like we’ll share the business updates on what heads we have added up new and where exactly the changes has been accommodated.
So that will be taken care of.
Unidentified Participant
No, I, I, I I’m not worrying about number. I just want absolute number of employee addition for H2 and for next year, given we are going to add the second shift as well. So, so that, that’s the purpose of my question.
Mukesh Vasani
H2 as of now was probably around 200 and this year certainly it’s gonna rise, it’s gonna increase. But as of now, like, we’ll don’t have the exact numbers. But can we can Keep you posted on that. Okay. And our tax rate has been falling year on year. So can you guide us? Like what would be the tax rate going forward? It will be 24 percentage corporate tax.
Unidentified Participant
Okay, and just last question. How much of the total raw material we are as of now we are planning to have 80 percentage of the raw material. So it’s in line still outside India. Outside India. So still we are working on that currently. How much of the total raw material we are procuring outside?
Mukesh Vasani
That’s what I’m asking. Okay, so if you say as of now like you can say 70 and above it is getting procured from out of India. 30% is local like bare PCB and other like specific mechanical parts. Apart from that if you talk about electronics we still have dependency on global footprints. So because until unless we have a full fledged ecosystem over here, we might not be able to convert that ecosystem across India.
So you can say 70% approximately is getting gathered or imported from business and out of that import how much is, is it from China or Vietnam or any other you know, tariff sort of risk having country. Like if you say China probably it would be less than, I would say 50, 40% less than that. Vietnam, we don’t deal with them directly but then anything is there like it’s China, Hong Kong, Singapore, Malaysia, Thailand and such kind of countries. Vietnam, there ain’t anything.
Operator
Okay, thank you Manan. We’ll take the next question from. And I would request participants please limit yourself two questions since many are in queue as of now.
Unidentified Participant
Hi, am I audible?
Mukesh Vasani
Yes, yes.
Unidentified Participant
Yeah. So I had a question on your current order book which you all have and given the industry classification which you all have given. So I see the share of automobile to increase to you know, almost 20% and then and for the FY25 automobile share was around 6%. So how do you see margins?
Because you said it’s going to be sustainable around 16% and at the EBITDA level it’s going to be 19% because we know understand automobile usually has low teens margin. So how do you see that’s going to
Unidentified Participant
To impact your overall, you know margins for next year.
Mukesh Vasani
And this customer is actually you know we there is two type of automobiles. You know there’s a BMS like a battery management solution. Those are also very, it’s not very low margin though like LED lightings or something, tail light, headlight, those are the very low margin business.
So the one we have right now the customer is in in you know and that customer has a very good margin because we are doing a main control board for that sn. You want to add something on this one why you know automotive is increasing and margin still stay same.
Nirmal Vasani
Certainly I think what Mukesh stated that is one part of it, another part or if you see another side of it we have capacity utilization available. So as of now we are working one shift and we are planning to add like one more shift. So that is something also that is going to help us out because if you see that like revenue is going to increase on that front and that is how like just an example.
Anyhow like Capex has already been there and we like internally have one thumb rule that one SMD Line 3 shift can generate around 100 crore worth of business. So considering that we can increase the roc well roce ratios and just ensure that whatever like parity is there it’s sustainable on that front.
Unidentified Participant
Okay, my second question is a bookkeeping data. You know so out of your FY25 revenue how much is from the you know intron us and intron other group companies?
Mukesh Vasani
I believe it’s less than 20%.
Unidentified Participant
Okay, so the rest is all you are saying directly from the India business And okay, only 20 you’re saying. Okay and how should we look at the cash flows? Because there has been a sudden drop in cash flows. Obviously it’s been led by impact by working capital but how should we look at it from the next year on? Next year on point of view.
Mukesh Vasani
Yeah, okay, go ahead, go ahead.
Nirmal Vasani
So I, I believe I stated before like this data is as on 31st March so whatever receivables were there we have started receiving the receivables and significantly of that like you can say 50% or above has already been received. So there won’t be any significant challenge on working capital side because if you see as of now we are a zero debt and probably to what we are eyeing at we are very strong on that front.
So what we shipped on first quarter we have started receiving that and certainly like last two months where something like because at last one significantly because of this tariff situation we need to ship. Lot of
Mukesh Vasani
Business, we show a lot of products. That is where the significant rise has been. But I think this is something this month we have started receiving the funds. So there won’t be any challenge on that.
Unidentified Participant
I mean so on the payable side because that is also, you know, gone up a lot. So do you think that is going to come down to our average orders? We have to start getting the material, right?
Nirmal Vasani
That’s right.
Unidentified Participant
No, no, but okay, so if you don’t have the material, how we are going to build it and how we are going to ship it and how we are going to get the payment.
Mukesh Vasani
Yeah, I understand. 605 energy. Let’s, let’s take you know, very short and sweet question.
Unidentified Participant
So we. Okay, thank you. Thank you.
Operator
Yeah. So we’ll take the next question from Mr. Manish. Manish, you can unmute and go ahead please. Manish, you can unmute. Ask, ask a question I think is.
Unidentified Participant
Yeah, yeah, sorry. Yeah, yeah. Congratulations on a excellent set of numbers. My question is what is the percentage of revenues you receive from U.S. customers?
And let’s say, you know, Trump has said that there will be separate tariffs on semiconductors. So if that is applied then probably even if India makes, you know, trade deal with us, there is a possibility that this separate tariffs on semiconductors will be an addition to on top of the trade deal in case India choose that. So in that scenario what could be the impact on the company?
Nirmal Vasani
Okay. To start a reverse way out. If we see so we are into PCB assembly and box build assembly. So even though they do start something on semiconductor side, if it’s specific to PCBA or if it’s specific to complete box build then that is something we are going to get impacted still it’s like they have kept on hold as of now and trade deal is as of now I’m going between both the countries and the negotiation phase is ongoing.
So once we have a clarity on that then it is something we can give you more heads up on that front. But as of now like with this tariff situation to what it has come across, India is the like in one of the lowest country where like in terms of tariff percentage if you see so and it’s like sweet spot stage.
Whereas compare, if you compare with any other like South Asian countries where EMs has been to this like 10 times, 100 times to what India EMs as in sector is and even if you see to what government is promoting as of now. So government
Mukesh Vasani
Of India has also started some of the schemes and some of the like incentive schemes, plis and all that. Also like even government of India for defense they have started like they have start restructured their revised target for specific to defense and by FY 2030 they are rang at 3,500 billion in terms of revenue just from the EMS sector.
So if they are rang at 500 billion then this a NIDIA report. It’s not from some like specific private Source. It’s from NAG itself. So they are ranked 500 million FY30. So I think we have a significant opportunity coming up down the line. And coming to your like first question, the contribution of us in second half of the year was somewhere around 36 to 37%. That is including like North America as well as USA.
Unidentified Participant
Okay, thank you. My last question is is there any impact in case if China completely stops the rare earth supply, will there be any impact?
Mukesh Vasani
I don’t, I don’t see the impact because when Covid started everybody used to with Kobe is a correct. So there will be a temporary impact you know all over the globe. But you know it’s going to be back up like a hockey stick going to send back. So at this point at EMS or at least one year we don’t see direct impact.
But if, let’s see if it goes after one year and stay something longer between you know, China, us, you know I think everybody going to solve the problem. That’s what Everybody’s seeing. Maybe 26% versus 13% or maybe 18% or maybe 10%. But it will be, it will be resolved pretty soon. That’s what we are hoping.
Unidentified Participant
Okay. Yeah. Thank you.
Mukesh Vasani
Thank you.
Operator
Thank you. Manish. We’ll take the next question from Arun Ramakani. Arun, you can unmute and ask the question please. Hello Arun.
Unidentified Participant
Yeah. Yes. My question was, you know. Yeah. So since we are facing a unique situation where a lot of opportunities coming for China plus one is the current capacity is enough for scaling up or do you see that we need to scale up to an extent.
Mukesh Vasani
So current capacity we are ready for 500 crores right now as of today. And we already announced that before previous call also. So our current capacity without maybe minor capex. Let’s see one tools here and there if fight an or. But we don’t need any more. We have enough infrastructure, enough building, enough real estate, our own enough, you know, zero debt.
So everything is, is in place to spike to. Even if snake can bring 400 crore, we can, we can, we can build it. Correct?
Unidentified Participant
Yes. Yes. I hope I answered the question Arun. Yeah. Yes. So one of my follow up question was you know provide we have an exceptional situation. Where do you see in case of any supply chain reception from countries like China or any East Asian countries. Do you have a strategy in place to overcome such challenges in terms of raw material procruitment?
Mukesh Vasani
So only PC board is a China monopoly. There is some electronic component. But China is going to throw the other countries. I think China already started, you know building relations with Thailand and other other countries and they already started, you know putting their infrastructures, companies and branches and everything.
So China will always find a way around and, and people will also find around a way. So I don’t see a very serious problem that way. Yes. Maybe will be impact 5, 10 extra logistics here and there. One place, another place. Right now let’s see. I should not say in publicly but one of my customers said in front of us can you bring an OPEC from India to here, you know, do some assembly over there and bring it over here because they also looking something like that.
So everybody wants to you know, get a better pricing and better, you know, way out. So at this point I. It’s kind of a man made, you know, problem. So if there is a solution, if it’s a natural disaster then it’s a very hard to find a solution like Covid. But this is a man made problem, is that correct? This problem is made by two men, you know so it’s kind of a political problem.
It’s kind of a. So that’s why in our last meeting, in our you know a, a you know, this kind of association meeting we discussed that also point. Yeah. Somebody will have to pay a little bit extra on an average 4.5% extra goes to end user or customers or you know, direct customer like me and you will pay extra. But there is a solution. So it’s not like an unsolvable problem. I hope I answered Ruji.
Unidentified Participant
Yeah, thank you. I think I’m good with my questions. Best of luck for I’m trying to grow a lot.
Operator
Thank you. We’ll take the next question from Mr. Manoj. Manoj, you can go ahead please. Hi Mukesh. Hello.
Unidentified Participant
Am I audible?
Operator
Yeah, you’re audible.
Unidentified Participant
Yeah, yeah. I’d just like to ask Mukesh, you know that, that things now are different and I mean previously he said that the long term plan for Intron is to fold Intron Corporation into Intron electronics. So. So now with that tariff situation, are you facing some clients who say that, no, we don’t want to work with India, we just want everything made in the usa?
Mukesh Vasani
As I said, you know, this is still Too early to even predict anything. You know, tomorrow morning, you know, this man had a good sleep and he’s going to change something different. So I’m just visit my country also because you know, I’m just trying to again. Yes, I don’t see that issue right now. Still we have the same plan and that is the reason we create a Amtron Electronics LLC in the US we are still moving forward with the same previous understanding that you know, before I retired I would like to put under one umbrella and maybe something comes totally weird. We’ll give you some heads up. But I don’t see that, you know without India whole world cannot survive. Without China whole world cannot survive. You know they have to have find a way out. So I’m just, this is my strong statement. But they will find a way out. Let’s put that way, will find a way out and they’ll find a solution.
Unidentified Participant
Is there an internal target for you all to just incrementally shift that Intron Corporation to Intron India? I mean a certain percentage per year. We started the business moving to you know, Mtron Electronics LLC and maybe we can surprise you and bring those 3, 4 customers right away and you know, we’ll see but we’ll, we’ll. We already started the process. We already started the process. So is it possible that by the time we shift to the main board everything is under Intron Electronic India?
Mukesh Vasani
That’s too early to say but you know, we should have something bigger. You know that’s our goal is to have you know, snare and my dream is to have some kind of a, a new, what you call snare a new as an SME company before it goes to mind.
Operator
Yeah. So my next question is to sneak question because there are a lot of participants.
Unidentified Participant
No, no, I just asked one question only. Just a final question to smear. Yeah, yeah. So I just wanted to ask him about the second and the third shift. You know so I believe if the second and third shift come on our margin margins will also get squeezed as the product profile will be different. Is that correct?
Mukesh Vasani
So just to, just to give you like one example on a like practical basis, just an example say like first shift to as of now to what we are working has 25% as NPAD. I’m giving an error of example. Don’t take into any calculations. Similarly you say like second shift you started working and you have like say 10 person as an or 15% as NPAD.
So if you average it out it is going to be still the same margin to what we are going to make it out. And if you see then overheads are getting splitted up and capex is the same. So then revenue towards scalability we are eyeing at. So with that same kind of margin, it’s something that is still we are assured that in this call also before that we are going to have the sustainable margin. And we’ll just ensure that ROC goes up with the equipments that we already have in minor capex here and there. Five significant one to reach the milestone of 450 to 500.
Unidentified Participant
All right. Thank you so much. Thank you. That’s.
Operator
Thank you, Manoj. We’ll take the next question from Ravi Gupta. Ravi, you can unmute and go ahead please.
Unidentified Participant
Hello, Is my voice audible?
Operator
Yes, yes.
Unidentified Participant
Firstly, congratulations on very good set of numbers. As a shareholder I feel very happy to see this year on year growth in the slowdown phase. Just two small questions. First, do we have any fundraising plan in the upcoming?
Like not upcoming this financial year 25, 26.
Mukesh Vasani
So at this point it’s too hard to say. But we have a lot of opportunities. You know, we, we try to, you know, see if there’s a right opportunity. We can maybe get something lined up. If there is a recession in the U.S. let’s see for example, and we find a good opportunity then we can jump onto that and, and we can come to go to fundraising and then get the funds also kind of a fundraising also.
We also thought that in the past, but we are still. We need to show, let’s say SN. I said 280 plus is the correct number for this current year. So let me, let us, let us prove that also one more time. Because this time we prove it is a correct. So we, we cross 150. We gave around 150. We cross 150. Let’s get cross, let’s say 300.
And then I think we go to market and get the fundraising without showing any result. I think it’s going market also is not the right approach to get justified also. And if no need, then no need is a correct. Why, why we take the money or why we borrow money if no need.
And that’s what I learned from my farm, my home country, my home village, you know, my parents, I say don’t take a loan, don’t take money from bank. I know. So there is something in our, our culture also. But with that said, we are not rigid, we are flexible. We have a well known companies approach us here.
You know, thanks to Vinay also, you know we have a very good IR team and we, we, you know, they are also ready to, you know, put money in us bank money on us also. But right now we working both way, keep our relationship open. Working with them, meeting with them and finding the right opportunity to put together all together.
Unidentified Participant
Okay, understood. So my question was primarily on like equity side debt is like separate for fundraising. Part But I think for equity also you have similar thoughts that if situation rise then only we would like to raise. Otherwise we are comfortable and firstly focusing on delivering 280 is my understanding correct?
Mukesh Vasani
Correct.
Unidentified Participant
Okay.
Unidentified Participant
You wanna ask me something? You want to add something? I’m okay with that.
Nirmal Vasani
No, I think we are perfectly okay as of now. Whichever rollovers that are going on, EPR ratios and all. And in case if we go anything on inorganic front then still we have open debt as an option available. So equity is precious to dilute. So we are still like too early I would say to have fundraising and all that.
Why? Why I said sne you want to add? Because we just came out management KPI meeting today. We had just finished at 4 o’ clock today and he actually normally you know chairman don’t have to do anything but they give me a KPI for 100 crores so I’m in activity so. So that’s why it puts me on spot. But anyway, continue.
Unidentified Participant
Thank you. Okay. Sorry, I only wanted. Yeah. So my second and last question will be what are the projections for like top line for FY27 and 28.
Mukesh Vasani
So next year like we are running it as of now 280 plus. Let’s keep with that number first and once we prove on that definitely I think we are not going to go anywhere. So post that we can help you out with future projections. We do have three years plan but as opposed now to keep you posted as per like guidelines next year we are ranked at more than 270.
280 plus. Also I think there is a lot of uncertainty in the, in the you know right now situation is uncertain. So whatever our, our promise is to you know until certain level will stay in that 50, 60, 70%. You know CAGR. So that is our, that is our, our standard right now. And we stay plus minus 15 plus you know 15 plus that minus 150.
Unidentified Participant
So Mukesh, within one year they have changed us from 40 50% to 60%, 70%. CAGR.
Mukesh Vasani
No, I think 60 whatever you you gave the number 280 plus. That means it’s 6070 is not it? Agreed, but I’m talking about the community from their end that from already there they made us to talk on more than 40 50% plus now anyway. But I think I, I.
Operator
Let’s take a next question. Thank you. Thank you. We’ll take the next question from Pratik Chik, you can unmute and go ahead please.
Unidentified Participant
So congratulations and just I just have a bookkeeping question. Out of this 100 crore that we build in the second half, how much did we do? If you can bifurcate between Q3 and Q4. Sorry, if you can reframe the question out of the hundred. I think it’s. It might be around 50. 50, but we’ll give you exact number if you need it, you know. So question is, with Q3 and Q4, what was the revenue?
Mukesh Vasani
But, you know, I think Q4 was slightly higher than Q3 because, you know, all EMs, you know At least aimed on EMS side. Q1 is little lowest around 35%. Q2 is around 40%. Q4 is around 50, 55 and Q5 sorry Q4 Q450, 50 to 60% range. So I think that’s where we have if you look at the last three years. So but we can, we can exit number if you need. We can, we can, we can, we can look at later on.
Unidentified Participant
Okay, thanks. Thank you.
Operator
Thank you. We’ll take the next question again from Pratik Bagadia. Pratik, you can go ahead please.
Unidentified Participant
Yeah. Hi guys. Thanks for giving me this opportunity. All my questions are answered so I won’t repeat those questions. Just one suggestion from my end that since we are giving results once in six months, is there a way where we can give some updates every quarter maybe through a press release or something where you can share about the business operations and how things are progressing.
Because what happens is six months is a very long time for a retail investors to get access to informations and in such times, you know there are a lot of rumors starts to float on social media and in different circles. So if every three months or maybe something in between, if you can come up with some press release or.
Or some updates about the companies of the operations and how things are going, it would be very, very helpful for you know, a lot of investors.
Mukesh Vasani
It’s a good, good suggestion. And you know we already promised Agatha ji The first question was same. I think we already, you know we’ll do some kind of press release if possible as soon as, you know our goal is actually have a quarterly result because when we go to main board we have to do that practice anyway. So hopefully next year we had a two years.
You know most of all the documentations contract with you know our internal auditor and everybody is kind of a six month way. But we already, we already started that process, you know over advisory ca. You know the consular also told us that we should go for. You know and we are in agreement also. So we are. But before that also we’d like to make sure our ducks in the row.
So we would try to put all this, you know, all this documentation process, financial process. We are as for the. As per the street requirement. And that’s what we are learning right now and putting the right team in right place. That’s what we are doing right now.
Nirmal Vasani
Yeah, I completely understand because you know coming up with quarterly results will have a lot of documentations and rules and regulations to follow. But till time we get to that process. Even if a small press release about the business operations would be very helpful for a lot of investors because that will keep rumors aside.
We are not worried about the quarterly result or documentation process because we would love to documentation process. And that’s the reason, you know, we would like to go for it. But this first two years, like, you know, internal auditor and all those people, you we had like a
Mukesh Vasani
You know, decided that we’re going to go first two years half yearly. But yes, we will do a press release or a business update for sure.
Unidentified Participant
Thanks. Thanks a lot.
Operator
We’ll take one last question from Mr. Giri. Giri, you can, you can go ahead please.
Unidentified Participant
Hi Mukesh and Snake. Okay, good. Good job done. Two questions. The first one would be way forward. What kind of a geography wise revenue mix roadmap that you guys plan to position yourself currently? You know I think India is about 65% restaurant. The world is 33% with 31% from US and few other countries.
So where do we plan to you know pushing ourselves on off the 800 crore inquiry that you have. Right. What kind of a geography mix that we have in place?
Mukesh Vasani
So again as I said in a previous answer in previous question when you have a 300 crore revenue it’s very hard to you know, give you some kind of estimate. I hope I’m clarifying or I’m communicating maybe a normal or maybe snack and also can add later on because order from, from one big order comes from one place.
It’s going to be imbalance everything. But yes, our goal is to stay you know international MNC and it’s going to be around 70, 80. That’s what we said previously. That means 50 let’s say we have Indian business but out of 50%, 20% maybe local Indian companies and 30 maybe Indian you know international MNCs like you know Snider or maybe ABB or maybe another international companies Honeywell.
Those are the companies we would like to focus. So that is our, our always you know, way out that way also we are trying to you know, newer opportunity. We are trying to focus more through international in US or North American business still you know even though this tariff situation, 10% paying tariff still my customer saying is bringing from India is, is lot cheaper than bringing from any other countries.
So I think other than China we are the winner. If this situation stays longer with China and US then India will be the winner because even 10% tariff, you know they, they will be happy to cope up with that.
Unidentified Participant
So thank you. Last question Mr. Mukesh, can you reflect on the 25 crore you know electronic component scheme that Ministry of Finance has passed right. Related to the sub assembly of pcb. How are we going to harness this scheme?
Mukesh Vasani
I didn’t follow SN. We are evaluating on 3, 4 prospects as of now. One is the PLI that has been recently released by government of India. This is the second one that you stated. So probably like this evaluation is ongoing and probably before end of this month. We have some fruits on that
Unidentified Participant
A quarterly financial result possible as soon as possible. So we put it in place. One thing assure that we are ready to go, you know, main board and we are excited to go main board. So for that also uh, then, and then we can, we can also justify our, you know one lot of questions comes over how are we going to combine all the business and all these things?
Mukesh Vasani
So we are ready for that. And in parallel we are also in expansion mode at this time. It’s too early to stay but there is, there is a. SNE said it’s a 500 billion dollar worth of you know, opportunities in India itself from other, you know, international MNC and local Indian companies. So there is a lot of opportunities we have in, you know so there will be a lot of expansion, you know, opportunities also you know, parallel we are working with our advisory board and, and then when something comes up we’ll let you know. Opportunity for aimtron is, is, is more but we are more kind of a.
As I said also last time, our goal is to go one step at a time. We don’t want to rush too far and, and tip off even though you know, we rush this time and we learn a little bit, it should have a couple days more and then we could have a better, you know, understanding, better result. But that’s what we are learning right now.
Operator
With that said again, thank you so much everybody and maybe anytime, any questions, please send it to csron.com and we’ll go from there. Thank you. Thank you to the management team for giving us their time. Thank you to all the participants for joining us on the call. This brings us to the end of today’s conference call. You may all disconnect now.
Mukesh Vasani
Thank you.
Nirmal Vasani
Thank you.
Operator
The recording has stopped.