Ceinsys Tech Ltd (NSE: CEINSYSTECH) Q3 2025 Earnings Call dated Feb. 12, 2025
Corporate Participants:
Kaushik Khona — MD of India Operations & Director
Prashant Kamat — CEO & Vice Chairman of the Board
Analysts:
Vaibhav Chechani — Analyst
Vimox Shah — Analyst
Puneet Mittal — Analyst
Pranay Chatterjee — Analyst
Garvit Goyal — Analyst
Ashish Soni — Analyst
Presentation:
Operator
Please wait while you are joined to the conference the conference is now being recorded ladies and gentlemen, good day and welcome to Sciences Tech Limited Q3 and FY ’25 Earnings Conference Call, hosted by Nirmal Bang Institutional Equities. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr Chechani from Nirmal Bang Institutional Equities. Thank you and over to you, sir.
Vaibhav Chechani — Analyst
Thank you, Manov. Good morning, everyone. Warm welcome to all of you. On behalf of Bang Institutional Equities, I I would like to extend a warm welcome to the — to the 3Q FY ’25 post-results conference call of Tech Limited. I would like to take this opportunity to welcome the senior management team joining us on the call. Today, we are pleased to have with us Mr Kaushit Kona, MD of India Operations; and Mr Prashant, CEO, Whole-Time Director and Vice-Chairman of CMC’s Tech Limited. I would like to remind all the participants to please refer the safe-harbor statement in the presentation. I now hand over the call to Mr Sir for the opening remarks. Thank you, and over to you, sir.
Kaushik Khona — MD of India Operations & Director
Thank you, Mr. Thank you all for joining this conference. Good afternoon, everyone. It’s a pleasure to welcome you to this earnings conference call for the 3rd-quarter and nine months for the financial year 2025. Let me first thank our host for today’s con-call, Mr Nirmal Bang, Institutional Equity and Mr in-person. In the interest of some of the people who may be new to the company, let me first start by giving you a brief overview of the company, first followed by the performance highlights and the quarter under review. Sciences Tech has been recently rebranded to CSTech AI, while the corporate name remains as Sciences Tech Limited. We are a leading technology solutions provider in the IT-enabled sector. We are acclaimed for our expertise in geospecial engineering as well as other engineering services and solutions. We offer a broad range of geospecial intelligence services, including data creation, data analytics, decision support system, enterprise web solutions and many more. In the FY ’22, the company strategically expanded into mobility sector by acquiring Allegro Technologies, a specialized engineering service provider with a strong international presence.
This acquisition allowed the company to enhance its capabilities into manufacturing technology and mobility engineering solutions covering the entire product development process and industrial automation for diverse sectors such as two and three-wheelers, passengers cars, commercial vehicles and off-highway equipment. We saw prestigious global cliental that include large corporates, OEMs, asset management companies and government bodies, highlighting its robust reputation in both the geospecial and manufactured sectors. With offices in India, the United States, the United Kingdom and Germany. The company combines local expertise with a broad international reach. Additionally, the company is venturing into software product development and emerging technologies through a new vertical focused on the artificial intelligence and machine-learning and embedded electronics. This vertical emphasizes advancement in metaverse, ad-tech, gaming and mobility, reflecting the company’s commitment to innovation and maintaining a high competitive edge in a dynamic technological landscape. Now let me provide some key highlights of our financial and operational performance for the 3rd-quarter and nine months ended 31st December 2024. For the quarter under review, our operational revenues grew by 79% year-on-year to INR212 crore. EBITDA grew by 102% year-on-year to INR21 crore with EBITDA margins of 19.14%. The net profit was reported at around INR118 crore, which represents a growth of 71% year-on-year and PAT margin stood at 15.92%. For the nine months of this financial year, our operational revenues amounted to INR276 crore, demonstrating a strong year-on-year growth of around 58%. EBITDA also saw a notable increase, rising by 62% year-on-year to INR51 crore with EBITDA margin standing at 18.61%. Additionally, our net profit surged by 77% year-on-year to INR41 crore with PAT margins of 15.02%.
The growth in both revenue and EBITDA margins was driven by a successful execution of projects, which contributed to stronger margins. Additionally, our ongoing initiatives to improve operational efficiency have enabled us to handle higher volumes more effectively, further boosting our performance. With a stellar performance of nine months, we have surpassed what we achieved in FY ’23, ’24 for the full-year on-top line, EBITDA and profit with these — within these nine months.
As at the end of December, the total order book stands at around INR1,390 crores. Of these projects in-the-water domain account for almost INR1,189 crores and Geospecial and enterprise solutions services contribute to INR199 crores. A key highlight is the improvement in our working capital cycle. We have reduced the working capital cycle from 237 days in March ’23 to 190 days in March ’24 and in this period of nine months-to 124 days, this progress demonstrates our efforts to optimize our operations and manage resource more efficiently. In September ’24, we raised fresh funds and issued equity and share warrants worth INR235 crores. This is part of our strategy to support organic and inorganic expansion and we are currently evaluating several options for inorganic growth. As on 31st December 2024, our total cash surplus is around INR125 crore with a net operational cash surplus of around INR20 crore. These figures reflect our solid financial position, which support our ongoing and future projects. On the human resources front, we have recruited 384 new employees during the financial year ’24-’25 till-date. Of these 277 are technically qualified to execute new projects, while the others will help enhance our support functions. This is part of our plan to ensure that we have the right talent to handle the increasing scope of our work. We added major contracts secured during the — during this financial year, which include one of the river linking project in Maharashtra valued at INR381 crores of our consulting services and an IoT-based project with Maharashtra State Water and Sanitation mission worth INR332 crore, a service provider contract with — for implementing an integrated GIS enterprise for, which was valued at INR29 crore, selection of a system integrator for integrated digital transformation of MADA valued at INR28 crore and many more. These contracts reflect the breadth of our capabilities and our continued success in securing significant projects across the various domains.
On the policy front, we are happy for the continued and enhanced focus by the government policies, which were announced at the recent budget presented by the Honorable Finance Minister. Some of the notable announcements include the one, the extension of mission till 2028 intended for 100% coverage on the various water schemes where CSTEC has a huge role to play. Two, starting of National Geospatial mission using PM Gathi Shakti, which will facilitate modernization of land records, urban planning and design of infrastructure projects in which all the areas we have our expertise; and three, building up on July 2024 budget proposals for incentivizing urban sector reforms related to governance, municipal services, urban land and planning. In all these areas also, we have sufficient expertise and experience. In closing, we are focused on driving growth and continuing to deliver on our commitments. We remain optimistic about the future and look-forward to sharing more updates as we progress. With this, I thank all of you to join and I’m now — the floor is open for question-and-answers. Thank you.
Questions and Answers:
Operator
Thank you very much, sir. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to withdraw yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles yeah. We have our first question from the line of Vimuk Shah from Labh Fintech. Please go-ahead.
Vimox Shah
Yeah. Thank you for the opportunity and congrats on the great set of numbers. So I wanted to know like how much of the current order book is from the water domain?
Kaushik Khona
Sir, I mentioned out of INR1,390 crore, water domain consist of the order book of INR1,189 crore?
Vimox Shah
Okay, okay. And can you can you share on the new vertical like magnets like which is focusing on, attack and gaming and mobility, right? So what are the initial goal and timeline for this vertical?
Kaushik Khona
So MacNext, I would request to revert, but we have developed this new vertical since more than 18 months now and there have been substantial development which have been made by them so-far, Prashant jee
Prashant Kamat
Yeah so I just want fundamental understood. Magnext is our play in the product development business. What we are understanding all these industries, whether it is gaming or ed-tech or anything, it is basically using geospecial data in a different form. And what Magnext is trying to do is capture that data and whichever source That data is captured, process it and make it available as a data for those industries. And as said, we have done a tremendous development on that side and we have already started using initial beta origins for our internal consumption. So that work is going-in a full suite. To answer your question, is there a timeline we have committed to launch it as a product? Answer is no. But is it available for our internal-use? Answer is yes, and we already started seeing the benefits of that and repeating the benefits of that in the margin expansion.
Vimox Shah
Okay. Okay. Got it. And regarding the data center initiative, what is the current plan and roadmap?
Prashant Kamat
On the data center, we are still at an exploratory stage. We haven’t committed resources to go on that. Whatever is required for exploration, that’s the only amount we are committing. So once we make the final decisions and plans and timelines, we will definitely communicate it.
Vimox Shah
Okay. Thank you.
Operator
Thank you. We have our next question from the line of JV from investors. Please go-ahead.
Puneet Mittal
Hi, sir, good afternoon and congratulations for the good set of numbers. Sir, I have very few questions. And one is regarding the revenue from engineering segment. So as we are seeing that there is a decline from INR543 million to INR489 million Q-o-Q. So could you elaborate on the key factors? Then this decline is this decline as a result of project delay or reduced order inflow or increased so let me take that question.
Prashant Kamat
Yeah, sure. Sure. The segmental revenue distribution we started from the last quarter or a quarter before that. So our aim in-building the company is to go for more technology solutions and less on the pure-play geospatial data crunching side. That’s how we believe we can build a company which is profitable, sustainably profitable, and we will be able to maintain and expand our margin. So the conclusion which you are drawing that our geospecial engineering revenues going down is actually a conscious call to increase more-and-more revenue on the solutions side to improve the margins and to improve the profile of the company. So it’s not a negative sense in that sense. It’s a positive sense. It’s a project mix which is actually helping us improve the company’s profitability and the numbers.
Vimox Shah
Okay, sir. And sir, one more question is regarding that the current order book is around INR13,900 million. So how confident manage next year? Right, is that correct? Sorry, we missed your question. So how confident is the management in converting it into revenue over the next fiscal years?
Prashant Kamat
Whatever is the pure project duration, if your question is, are we going to deliver INR1,300 crores next year? Answer is no, because this project has a duration given and management is 100% confident of delivering to the order book as per the project. There is no even higher top doubt in our mind.
Vimox Shah
Okay, okay, sir. And sir, you have raised equity and share Juarez. So how do you plan to allocate these funds between organic and inorganic growth opportunities?,
Prashant Kamat
Do you want to answer that question in exact numbers?
Kaushik Khona
Just to give you a feedback on it. We have raised these funds. The first tranche of INR105 crore is available. The total amount is towards the allocation which is already proposed in the EGM resolution where 70%, 20% and 10% is the allocation. 70% is towards the acquisition, 20% is towards expansion and 10% is towards working capital. So as of now, as we already clarified, we are on the evaluation of various opportunities, which we are doing to take the inorganic growth. And therefore, once the opportunities are available, we will be utilizing the funds based on the location which is already-approved. So presently, they are not utilized. They are available for the acquisition.
Vimox Shah
Okay, sir, is there any acquisitions in pipeline, sir?
Kaushik Khona
So we have been — we have been inviting few in few opportunities to evaluate. We have as of now almost three — almost four opportunities which are being evaluated and two of them are on the final stages. Hopefully within next two, three months, we should be able to give you some update on this.
Vimox Shah
Yeah, sir. Sir, if you permit me, can I ask one or two questions more. Sir, one more question is related to how expos is since ongoing tariff walls between global markets?
Kaushik Khona
Sorry. So I think the question. Yeah, please. No, he is talking about tariff fall. No, no, I missed the question. You can answer question. I’m sorry, I missed that question. I didn’t understand. So I think what you are looking at is the issue which is pushed by Mr Trump, the President of United States. That’s what you’re referring to?
Vimox Shah
Yeah yes, sir.
Kaushik Khona
So as of now, I think we don’t have any impact because of any of the implications it may have, which presently there is none because our presence is in the international market, we are based at US, we are based at Europe and Germany, UK and Germany. And we deliver projects from there itself. We don’t kind of do a product export. So I don’t think there is anything to do with tariffs to — on the export or import. And therefore, we don’t see any impact on that. In fact, what we also see that because of the technology expertise which Indians have, lot of outsourcing is happening as already in the initial notes we have mentioned that lot of outsourcing opportunities are available to India. And therefore, we believe that it will be better in the due course of time, but we are awaiting for the final fine print of what impact — what does the US do to the final tariff policy?
Vimox Shah
Yeah, sir. Sir, last question is, sir, can you elaborate on the company’s initiative in AI, meta and gaming and what are the biggest technological challenges with Deep that could threat to the company’s growth in AI space, sir?
Kaushik Khona
Prashant jee, would you please take this?
Prashant Kamat
Question is, what are we doing on the AI side?
Vimox Shah
Yes. Yes, sir. And other thing is that what are the challenges with Deep that could become a threat to our company, if any, so in AI space sir.
Prashant Kamat
Okay. So is a kind of agent, so we don’t see any issue for deep trying to disrupt our business. That’s the simplest question-answer on that. On the AI front, what we are doing, sometime back we spoke about Magnex. All of that data ask it usage in a different formats and different verticals is based on artificial intelligence. We have a team already in that segment and we are building those competences over a period of time in coming 18 24 months, we will start expanding that into other segments of our business as well.
Vimox Shah
Okay, sir. And sir, what about this meta and is this associated with the same thing is that meta and gaming. So all these are related to this only.
Prashant Kamat
Yes, yes. All of that is related because all that data influences, the basis is artificial intelligence.
Vimox Shah
Yes, sir. Sir, you have mentioned that it will help us in margin expansion. So can you explain it how it will affect our margin expansion this magnext so if you actually see even currently over last two, three, four quarters, the reason we are looking at stable and growing its business in terms of margins is because we are trying to use artificial intelligence layer to more-and-more automate our work, right?
Prashant Kamat
So in terms of employee increase over last year versus the revenue increase over last year, if you look at the actual numbers, you will realize why I’m saying our margin expansion also depends on that automation through — artificial intelligence.
Vimox Shah
Yes. Thank you, sir. Thanks a lot, sir. Thank you. And congratulations.
Operator
Thank you. Thank you. Ladies and gentlemen, in order to ensure that the management is able to take questions from all participants in the conference, please restrict yourself to two questions per participant. Should you have a follow-up question, we request you to rejoin the queue. The next question is from the line of Puneet Mittal from Capital Limited. Please go-ahead.
Puneet Mittal
Hi, thank you. In terms of the order book, can you please give a split of the order book of between domestic and exports? And also some sense of the order pipeline that you have, Which is in pipeline for both domestic and overseas? And the second question is, can you give more color on this quarter’s revenue from — from Allegro and from BTS that you acquired recently. Thank you.
Kaushik Khona
Sure. If I can take Prashant the order book good. So we — we have clarified the total order book as at 31st December at INR1,390 crore, of which broad classification on the types of segments in which we have the order book. If you look at the capex part, capex is basically the capex for the client. The order book is almost 90% or 92% and the balance is opex. When you look at the classification into the segments which we work, although we also clarified the domain. But when you look at the segments, the geospecial version at the geospecial and the engineering services would contribute almost 35% and the technology solution could contribute almost 65%. This is the broad breakup of the order book. And we are also as we already clarified earlier, this will go as per the period of execution as per the clients order, which will take into — into — and the capex could be between 18 to 24 months. What was the second question,?
Puneet Mittal
Sorry, just on that order book, can you also split between what is offshore and what is domestic in what is the order pipeline right now apart from what you have from order book?
Kaushik Khona
Sure. So the order book is in the range of around INR135 crores, which is to be executed through various clients. And the pipeline, we keep on building, I think every opportunity, just to give you numbers, last nine months, we have built-up the order book of almost around INR893 crore and we have a similar efforts going on for every quarter-on-quarter basis where we aim to bid for the orders which are aligned to more value-added services, which we are now providing and we find lot of options available. On an average, we see good opportunities in the range of around INR400 crore INR500 crore per quarter could be the aim, right? We have also been applying for the new orders. As regards the Allegro, I think Prashant jee.
Prashant Kamat
Sorry,. Yeah. Allegro, the total contribution out-of-the nine months turnover, which we talked about the Allegro and the sciences individual. So individually, just to give a breakup, out of INR118 crore, which is this quarter revenue, INR100 crore was Sciences standalone and Allegro is INR18 crore standalone.
Puneet Mittal
This is the broad breakup., would you like to elaborate anything further?
Prashant Kamat
No, no, you have given the correct numbers, yeah, which is correct. Allegro and VTS, we expect tide to turn and see the substantial growth stop
Operator
Ladies and gentlemen, please stay connected if we have lost the connection with the management ladies and gentlemen, thank you for patiently meeting. We have the management back with us. Over to you, sir.
Prashant Kamat
Thank you. Sorry, I was saying sir, on the BTS and allegro side, we should start seeing the growth potential from coming March-April. This was as probably all of you know, auto industry during the last year, especially in the US segment has been going down. However, there are good signs of recovery and we intend to make the best off of it. So just that’s an additional piece of information I wanted to add.
Puneet Mittal
Yeah. Thank you. And wouldn’t that be the case for the joint-venture grammar as well with grammar.
Prashant Kamat
Joint-venture has been stable. We don’t see any issues in joint-venture — and we don’t see anything negative impact on joint-venture. We didn’t see even in this year. But because we don’t consolidate joint-venture numbers, you probably won’t see them in these results.
Puneet Mittal
Yeah, but going-forward, do we see any — like last year, I think it was INR12 crore of our profit in the joint-venture. Do we see that growing this year or next year?,
Prashant Kamat
No, hold-on. I think last year we had explained that last year growth was because the first cycle of joint-venture duration was coming to an end and we renewed it for the next cycle. So last year number was increase, but we do not see it going down. Will it increase? My answer right now is a little bit cautious. I would say it would remain more like flattish than the growth, but we don’t see any risk of business losing or anything on the joint-venture.
Puneet Mittal
Understood. Understood. Thank you so much. Thank you.
Operator
Thank you. Thank you. A reminder to all participants, please restrict yourself to two questions per participant. We have our next question from the line of Prane Chatterjee from Berman Capital Management. Please go-ahead.
Pranay Chatterjee
Thanks. Am I audible? Yes, you are. Great. I’m trying to understand the delta and order book versus last year, INR1,210 crores to INR1,390 crores and given the revenue execution that has been done. With respect to this, is the river linking project included in the INR1390 crores number?
Kaushik Khona
Yes, it is.
Pranay Chatterjee
But that doesn’t make sense, right, because that order was 1 in 10 strand and you have mentioned that 1390s as of 31st December.
Kaushik Khona
Yes. So we — if you’re reconciling between what period to what period
Pranay Chatterjee
31st — 30th September to 31st December.
Kaushik Khona
So during this period, one is the value of execution, which has already been done, which is also going to be reduced, which is around INR110 crores for the — for the orders which have already been executed. And what has been added is around INR380 crore. And I think we can do a reconciliation on an offline basis because that will be too much of number crunching, but numbers will tell you.
Pranay Chatterjee
Got it. So just one thing I wanted to ask that INR1,210 crores that you disclosed last-time, then it probably wasn’t quarter-end, but it was somewhere in the middle of this quarter, right, the time that you’re putting?
Kaushik Khona
Yeah, I think it was perhaps it was also explained last-time. It was on 30th of June, if I remember. And that’s why the numbers were getting reconciled. But as of now what the numbers which we have on 31st December is post the execution done till 31st December, including the orders which have already been awarded. And these orders — this order book does not include obviously the orders in pipeline, it’s only come from order books, which have the capex and opex part.
Pranay Chatterjee
Got it. Okay. My final question is on the order pipeline. I think it has been asked already. So in Q1 — after Q1 call, you had mentioned that the pipeline was about INR200 crores, but obviously, the order book was around INR750 crores there. That pipeline would have been converted and probably executed as well. What would be that what it was right now? Would you be willing to disclose that or right now we are focusing on execution?
Kaushik Khona
So we are already got the orders in respect of those pipeline. I don’t think we missed out anything. And as I already mentioned, the total orders which we received during the last 9.5 months or till January was INR893 crores. The pipeline right now is — I mean, we normally have every quarter pipeline of around INR400 crores to INR450 crore. As of now also, we are running on similar numbers of pipeline.
Pranay Chatterjee
. Got it. And any delay you foresee, sir, if any of the projects correct order
Kaushik Khona
Not at all, because we have already — as we — I also mentioned about the people which we already onboarded. So when we actually see the opportunity, we also onboard some of the people to start with the evaluation and preparation for that. So presently, we don’t have any challenge on the delay of the projects.
Prashant Kamat
Just one small point to be added. I don’t know the question which is coming from which angle. So I just want to add two separate topics on this. Whatever orders we have won, we don’t see any concern in executing as per timeline, which we are repeating. So from that point-of-view, we don’t see any delay. However, converting pipeline to actual order, it’s — we are dealing with too many unknowns. We are optimistic about getting this as we plan, but there could be delays from closing those orders. Just to be very clear on that.
Pranay Chatterjee
Okay. Understood, sir. Anyway, my question was on existing order book. Pipeline obviously is not in anyone’s control.
Prashant Kamat
Yeah. We will be able to deliver.
Pranay Chatterjee
Sure, sure, sure, sure. Thanks a lot. Okay. Thank you.
Operator
We have our next question from the line of C.A. CA Garvit Goyal from Envest Analytics. Please go-ahead.
Garvit Goyal
Hello. Good afternoon, sir. Congrats for a decent set of numbers. Sir, apart from this 1,400 CR order book, we got an additional order of around INR381 which is which is for this irrigation, right? And the anticipated timeline for execution is around six months. So can you tell us like how much of this particular order is going to be executed in this financial year? And what is the amount of silver into the next year, sir? So that is my first question.
Kaushik Khona
Okay. So first thing, just to clarify, INR1,390 crore includes INR381 crore. It’s not over and above because the order was awarded already before this meeting. The order book which we mentioned is including the orders which have been granted so-far. Now as regards to execution, we already started the execution of the VIDC project, which is the linking project. And as per the project timelines, we expect within this three months, which is January, February, March and execution in the range of around INR150 crore odd and be subject to some regulatory approvals which we require based on the project execution which we have to do. So as of now, we don’t see any challenge of executing — execution of that. But during this quarter, the execution could be range of around INR150 crores for that project subject to the regulatory approvals which are required from the government.
Garvit Goyal
And sir, execution period is generally low than the average execution period that you already mentioned for other project. So is it like this project is going to be affected in the terms of margins that we are currently doing?
Kaushik Khona
No, no. There is no challenge in the margins. We have — this is a prestigious project. We have already garnered — garnered all our support functions. What is more important also is on the technology front, we also tied-up with Nippon Koi who are having better expertise on some of the capabilities of designing and engineering capabilities for the dams and canals and all. So they are our JV partner in this project and they will be also enabling this. So we have already started working together and all the processes which are required have already been started.
Garvit Goyal
So you mentioned JV partners. So is it not like the entire revenue will appear in our top-line or no, it is not a JV and sense. It is basically a consortium where we are the clients and they are our kind of what do you say the work order we will be granting to them. Technically, let me just clarify, it is basically our execution partner. And that’s it for this project. It’s neither a JV nor anything else. Yeah, sorry for that JV. It’s actually a — at sir is execution partner. That 150 of sciences number. Got it. Got it. Second question is on the similar kind of project, like recently, Rajasthan government have announced 40,000 CR river linking project, right? And so my question is like, are you people seeing any opportunity to leverage its expertise like you are having in water infrastructure projects like given the recent irrigation order, so is Sciences evaluating the potential participation in this project? And if so, so what is the role the company is considering? And additionally, what is the size of order value could this opportunity represent to us?
Kaushik Khona
Yeah. So I think we are very keen to particip, we are evaluating. We have been discussing and we have been coordinating for such opportunities. The opportunities are available in not only Rajasthan, they are available in other states also. So we are — our business development team is already evaluating those opportunities. And obviously with the kind of experience which we already have gathered and we will be doing, so that opportunities will be obviously taken-up. When we look at our part of the share, typically depends on what kind of services we render. And in these projects presently, it will be in the form of survey, DPR engineering solutions and plans to be prepared for the purpose of BOQ for the state governments and then they will float the RFP for further EPC project. And typically, if you look at the Maharashtra government project, the EPC cost of this project is expected to be in the range of INR8,000 INR80,000 crore-plus and our number is around INR400 crore-plus. So I mean this is something which — while I don’t think that’s a — that’s easy permutation to be calculated, but it could be in the similar range.
Garvit Goyal
Got it, sir. And just a clarification on the earlier part, like you mentioned 400 crore to 450 cr currently pipeline — quarterly pipeline basically. So what is the R win ratio in this?
Kaushik Khona
So I think Prashant you already clarified, we are putting our bet on where we feel we have our advantage and experience. The credentials where we — in the projects where we have higher credentials is something which we try to bid for. And so-far in the last two conference calls also, we have been mentioning about the winning percentage has been in the range of around 85% to 90% on the — on the bids which we pursue. So we — right now, we cannot cite any percentage of what bidding per — billing percentage we will have for the pipeline, but we’ll try what we can do.
Garvit Goyal
Got it, sir. That is it from my side, sir. All the best for the future. Thank you.
Operator
Thank you. Ladies and gentlemen, please restrict yourself to two questions per participant. We have our next question from the line of Nikhil from Kizuna Wealth. Please go-ahead.
Pranay Chatterjee
Yeah. Yeah, am I audible? Yes, you are. Yes, sir. Thank you for giving me the opportunity and congratulations on very great set of numbers. Just a follow-up on the other participants’ question, like we have an 80% to 90% bid rate and we have INR400 crores of pipeline every quarter. So we are looking at a order win for the year to be around INR1,200 crore to INR1,600 crores, approximately. So what the run-rate should be is quite high from our past performance. So are we confident of achieving that? And even in the last con-call also, Prashant sir said that we are aspiring to achieve INR1,000 crore of revenue in next two to three years. So isn’t the ask rate too high I think we are talking about some hypothetical questions, but we are building up the capacities. And if you see the growth quarter-on-quarter in the last eight quarters or if we just tracked last four quarters, we have been growing at a CAGR of more than 70%.
Kaushik Khona
So I think the — there is a proof in the statement which we say that we are adding our capabilities. This quarter is the highest performance so-far. And obviously next quarter we target to improve upon. You have already seen that the nine months result of this year are better than the last 12 months results so — and still the best quarter is yet to come because quarter-four is normally the better quarter as you all know. So I think there are some things which are — we are building up the capacity. We already talked about number of people which we added. This also takes care about some of the projects which we are evaluating. So we are building up the capacity as we go. And I think when we bid for a project, not all projects are to be completed in one year. There are projects which go into 18 months, 24 months, our large projects also go into higher period. So I think we are building up the capacities to ensure that we are delivering a higher-end of the project because now with the kind of capabilities which we already acquired, we are looking at a project which gives us a higher-value Addition based on the higher capabilities required. That’s how the kind of credentials which we have gathered is going to be utilized in future. Sir, that’s great to hear and very assuring. Like we have all our base engine set and now we are just ready to explore for the growth.
Pranay Chatterjee
That’s great to hear. Sir, my second question is on VTS. Like on the VTS is engaged in geospecial services in telecom sector in the US. So sir, how are we looking at that telecom sector in the US, like how the revenues are going to come in, how is the orders there, order pipeline? And going-forward in the future, how are we looking at our domestic mix and our export mix? Are we looking at some kind of 60, 70, 60-40 ratio or 70-30 ratio? Like how to keep that mix??
Prashant Kamat
Okay. On the telecom side and VTS side, yes, your reading is right. We are trying to explore telecom in that market of US in and we believe it’s a big growth vector for us in coming quarters. So we are also looking other opportunities for the growth in that segment. And we think we are in the right space and we are trying to maximize that. So your second question was, is there a mix going to change over a period of time? Answer is yes. How much will that be? I think it’s a little premature to answer whether it’s 0, 40, 70, 30, but our target is to get more consistent annuity revenue, therefore, the percentage of international revenue will continue to increase. That much I can tell you right now. Okay. Okay, sir, that’s great to hear. And that would also give us a push to the margins, right, sir? Yes, yes. We expect that to happen.
Pranay Chatterjee
Yes. Okay, sir. That’s great to hear, sir. Congratulations on great set of numbers and that’s it from my side. It’s very great result, sir.
Operator
Thank you. Thank you. We have our next question from the line of Vineet Katri from Toro Wealth Managers. Please go-ahead.
Vimox Shah
Sir, I would want to — I wanted to know the guidance which I have given for FY ’25 and FY ’26. I couldn’t hear you. Sorry, can you please repeat,? Sir, I would like to know if you have given any guidance in terms of top-line and profitability for FY ’25,
Kaushik Khona
We are right now not giving any guidance. But what we do is we have a quarterly investor call after the results. So presently there is no guidance which we are offering. We will evaluate if we need to change this policy in the — after the year-end results. Thank you.
Operator
Thank you. We have our next question from the line of Ashish Soni from Family Office. Please go-ahead.,
Ashish Soni
Regarding Data Pamper business, how is coming up and do we see our target of addressable market increasing with?
Prashant Kamat
I think beginning of the call, I mentioned that data center is one area we are still exploring. We haven’t made-up our mind to be a serious player in that. We have not spent money either in that area. We are just at a stage of exploration. At the end-of-the exploration, if we believe there is a potential and we need to be there, we will take the necessary actions and steps. And by when do you think you can come up with this exploration like another one or two quarters for more time? Yeah, another call — another quarter or two, that’s max.
Ashish Soni
And regarding acquisitions, any particular revenue you are targeting from I think two acquisitions which you plan to close maybe another three to four months or maybe six months. Any particular revenue you are targeting from those customers in any particular space.
Prashant Kamat
The space will be geospecial that I can right now tell you our revenue is a little premature to talk about acquisition revenue when we don’t even have completed that acquisition. So I’ll be a little bit hesitant to answer the revenue question.
Ashish Soni
Okay. Okay. And other thing I think you mentioned, I think in the current order book, I think you’re executing, I think INR150 odd crore subject to liability approval in like Q4. So do you think in Q4 revenue might be like INR250 crore-plus if I do the math, whatever I’ve understood from the call? You can do whatever match, we will not comment on the future revenue.
Prashant Kamat
And I’m not sure when Kaushik said 150 or anything, he was mentioning that it will happen in that quarter only. Maybe there is a misunderstanding., you can correct if I have misunderstood.
Kaushik Khona
Okay. No, it’s a — it’s a quarter till March, but it is — as I said, there are still things to be approved by the government, the customer. So therefore, and there are large issues which the government has to approve. So I think 150 is we are prepared for, but let’s see how it works.
Ashish Soni
Okay. Thanks and all the best. Thank you.
Operator
Thank you participants who wish to ask a question may press star and one on their touchstone telephone. We have our next question from the line of Nillab Jade, an Individual Investor. Please go-ahead.
Vimox Shah
Good afternoon, sir. And congratulations on your great performance. Sir, actually, I just have a couple of two questions. First of all, as an IT, I am considering you a pure-play IT service provider, obviously specializing in a niche area. So in this particular segment, currently you are heavily dependent, your order book is heavily dependent on the government orders. So how you are — and earlier and we all know-how these government orders comes, lot of uncertainties and delays. So what you are currently doing to diversify your order books, specifically from the private sector’s environment from USA side or something or beyond India, may I know can — please can you share some thoughts on this?
Prashant Kamat
Yeah. I think during the call, sometime back, we mentioned that one of the action we have done already is we have acquired VTS, which is purely US revenue and we are also exploring further possible acquisitions. So that is one definitive action company has already taken. What we are also doing is we are also expanding business development team in US so that we see more US revenue. As a strategic direction, I mentioned that over coming quarters, percentage mix of international revenue will continue to increase.
Vimox Shah
Okay. Okay. Surely. But another thing in the same context, I just want to share that how you are bolstering your currently your leadership profiles? I know you have mentioned you have hired a lot of people, all those stuff. But in case you want to get new business from the intern from specifically the private sector, beyond India, beyond government, whether it is India or specifically in USA, you really need to deploy a lot of senior people both hire a lot of senior people not only from the BD side, but also in India also with the vast solid who can give enough extra confidence to the client, yes, they can execute beyond the government. So what you are doing in that directions?
Prashant Kamat
We have recruited some senior resources already in the US and we are on continuous lookout to get more people over the period of next few quarters, you would probably see this more-and-more people joining and a very senior people from the industry. And just to supplement that we have also been targeting. We also tied-up with some agency for Europe and what your question was also correct that we also have India BD enhanced to support that function. So I think all across the BD is being enhanced.
Vimox Shah
Okay. Okay. Thank you. Thanks for you. All the best. Thank you.
Operator
Thank you. We have our next question from the line of Pal from KRSP Capital. Please go-ahead.
Puneet Mittal
Yeah, thanks for the opportunity, sir. My question is, sir, what are the — what is the order pipeline that we are taking right now? So sir, we have confirmed order book of almost INR1,390 crores as on 31st December. And we are — this is what is under execution
Kaushik Khona
And we keep on evaluating more opportunities and that is the order pipeline, which we will be able to confirm as and when the orders are granted, we keep on intimating to the BSE about such orders being granted. So as of now, we are sitting on a order book of INR1,390 crores, which is being executed. So sir, what is the execution time period of this order book and what
Vimox Shah
Is the order book that is to be executed in this financial year, if you can answer.
Kaushik Khona
So the order book which we have has various different customers and different execution timelines. Out-of-the total INR1390 crores, there are some projects which go up to 24 months. There are some projects which go — even the opex period goes up to five years thereafter. During the — during the year — one year, which is financial year 2025, ’26, the order book which we already have, the order execution will be in the range of around INR550 crores out-of-the total present order book.
Puneet Mittal
Okay. Thank you. That’s all from my side. Thank you.
Operator
Thank you. We have our next question from the line of Utkash from an individual Investor. Please go-ahead.
Garvit Goyal
Thank you for the opportunity. Thank you. So your standalone profit is higher than your consolidated profit. And I guess the major difference between the two is the employee cost. So can you please speak a little bit about this and why the difference?.
Kaushik Khona
So I can just — before Prashant jee would comment, I would just like to give you the actual numbers. So on the standalone, the profitability is higher than the consolidated, your observation is correct. On the legro side, which is the engineering solutions which we have — which we incorporate as a part of consolidation, there has been a slight EBITDA negative, which is same as last quarter and we expect that to improve further. Further once the — once the things improve in US where we are catering. So Prashant ji, I would like you to further supplement. Yeah. So first and the most important topic, I think we addressed this question last quarter also, one of the major reason why we see this drop-in allegro but growth in CST is because what you will see is the numbers when they consolidate it financially doesn’t actually give you the correct picture for the business. What we have done is the investment for the international market growth is being accounted in Gro because we have a subsidiary of Allegro in US and not subsidiary of the parent company.
Prashant Kamat
So actually seeing them disconnected is probably not the right picture it is projecting.
Kaushik Khona
Okay. Yeah. And if I had to adjust — just to supplement what said, if I were to adjust that expenditure we will be EBITDA-positive in Allegro as well. And to that extent, the sciences CST results will be slightly kind of adjusted. But otherwise, I don’t think there is any major challenge in the results as such. So the reason is Allegro hasn’t scaled much yet. As it scales, your operating leverage will kick-in and profitability will also kick-in. Is that the right understanding?
Pranay Chatterjee
That’s correct. Okay. And in this quarter, your gross margins fell, but EBITDA margins were higher both quarter-on-quarter and year-on-year. So can you explain why that is? I mean, at the same time, your tech solution vertical also did better revenue. So are the two related?
Kaushik Khona
You are right, they will be related because when we look at gross margins, we normally look at the EBITDA level because gross margins are to be adjusted to various other line items of the project execution cost. So we rather look at the EBITDA margins. In the gross margin, some projects don’t have the deliverables like some of the softwares or products and therefore, they will be slightly higher. And in the other cases, there will be more of manpower cost or technology cost. And therefore, the percentages per every contract will be different. So I would suggest that we look at EBITDA margins, which will give you a better picture. And when you mention about tech solutions, you are right. And I think Prashant jee also mentioned in the meeting that the margins are higher in the tech solutions and therefore, our focus also is in enhancing on the top-line towards that so that the margins also improve further.
Pranay Chatterjee
So going-forward, the share of tech solutions will go up or at least remain the same in your order book and revenue.
Kaushik Khona
So as of the present order book, the tech solution percentage is still — will keep on increasing as we as we go into the next quarters. Where does that stand today? The tech solution percentage in your order solutions, if you look at out of INR118 crore, we have INR63 crore of the revenue from tech solutions and INR49 crore from Geospecial engineering services. And that’s what-if you see quarter-on-quarter also, the tech solutions turnover has been improving from last quarter of INR36 crores to INR63 crores.
Pranay Chatterjee
So in your order book, the INR1,300 crore order book, I wanted to know the share of tech solutions and that
Kaushik Khona
Tech solutions, I already I think I had clarified it is in the range of 60% — 60% to 65% on the tech solutions, yeah.
Pranay Chatterjee
Okay. So another intention is to increase and maintain tech solutions, we can assume this 19% as base margin and then your — if at all we scale-up, it can improve, but we can maintain this.
Kaushik Khona
That’s correct. If you see the quarter-on-quarter margins of last six quarters also, you can see the margins have been slowly improving each quarter because of that gradual shift.
Puneet Mittal
And sir, I have one last question on the order book question you answered to the previous participant. So out-of-the INR300 crores INR1,300 crore order book, you said the support functions will continue for the five years after the order is done. So is that part of the INR1,300 the support revenue or there are some projects where there are O&M and support to be provided?
Kaushik Khona
Not all. And in some projects where there is a O&M support, there are two years projects — two years OpEx or five years opex depending upon each project. So they will continue to be — and they are part of the order book also.
Pranay Chatterjee
Okay. So of the INR1,300, how much will be support and how much will be the core order.
Kaushik Khona
So out of INR1,300 support is INR64 crores and balance is the core. So approximately INR1,200 crore is the core order. OpEx is normally less and because not all projects have opex and the maximum tenure is two years of any other projects within this INR1,200 crore, right? It is no. It also — there are some projects which go up to two years and more because there are certain open-ended projects also, which depend upon the project completion of the EPC contractor. So for example, I am doing a TPI for some projects, which project is — has a project life of almost five years, but they get on extended every year-on year. So that project life is more than two years, three years?
Pranay Chatterjee
Okay. And sir, as you say that you intend to bid for INR400 crore, INR450 crore of orders per quarter and your success rate is, 80%, 90%, does that imply that we expect INR3 odd 100 crore order every quarter or at least INR200 crore every quarter. How should we understand that statement?
Kaushik Khona
And first of all, no forecast should be interpreted? No, absolutely not. I’m just trying to understand the scale of the company from now to two years later. So that’s what I stepped in. I apologies for stepping in-between. I think what Kaushi was mentioning or what our intent to communicate is this is the way we are building the company and this is what our track-record is.
Prashant Kamat
Okay. If you want to take that as a forecasting tool, it’s up to you, but we don’t want to give any forecasting on that either closing order or what we would expect business to grow to. I wouldn’t like that. Track-record. If you go by track-record, your numbers are correct. That’s how it should be.
Pranay Chatterjee
Okay. Okay. Understood. Okay. One last book question if you allow. Yeah, please continue. Yeah. Yeah. Is this interest cost and depreciation for the current quarter a sustainable number we can go with? Because both have increased quarter-on-quarter and yeah, both of it is quarter.
Kaushik Khona
Yeah. So this is only because this was a period when the working capital was utilized, otherwise, we don’t have any term loans and this working capital limits are not so great. So I think these numbers are not going to fluctuate much. And what is the operating cash-flow for the 3rd-quarter? You are talking about the OC operating cash-flow. Yes, operating cash-flow generation for the 3rd-quarter just give you one minute it’s around INR124 crore.
Pranay Chatterjee
. Okay, thank you so much and best of luck. Thank you.
Operator
Thank you. We have our next question from the line of Siddharth Matthew, an Individual Investor. Please go-ahead.
Vimox Shah
Good afternoon. Am I audible? Yes, you are. Congratulations on a great set of numbers. I just wanted to get a sense of, in the rebranding when you added the word CSTEC, when you added AI, what is the sort of rationale behind that? Is it in some way connected to potential acquisitions? Because from my understanding, our company’s capabilities are not there currently. So that’s my first question. And my second one is relating to the current pledge. Just wanted to know what the pledge was and if it is — could potentially increase or be released? Those are my two questions.
Prashant Kamat
Okay,, let me take the first one. Second one you can address. So on the adding of AI, that is the intent of the company that we will start building AI layers in different parts of the company, different functions of the company. Our journey has already started as I explained on Megnext and we will continue to do that. We expect more-and-more artificial intelligence-based decision-making inside the company. So that’s why we added that here. And is your interpretation, is it because of acquisition? Answer is yes. When we are looking at acquisitions, we will also look at from that., over to you for the second question. Yeah. What was your questions?
Kaushik Khona
Can you just repeat? Sorry. I just need to know the current shares that were pledged. I think — no, the shares pledge was an old arrangement, which is long back before five, six years when we were banking with State Bank of India. And we have been able to make fresh arrangements where the new banker is expected to kind of not ask for any more shares in-spite of the fact that the limits may increase. And gradually we expect that numbers of pled shares to reduce, but as of now, they are the same. Okay. So around 15% or so, is that correct? Yeah. They are less than 10%. Less than 10%. O
Ashish Soni
Kay. Thank you. Thank you. Thank you.
Operator
We have a follow-up question from the line of Chatterjee from Burman Capital. Please go-ahead.
Pranay Chatterjee
So I just wanted to confirm one number you mentioned INR550 crores would be the execution of the current order book in FY ’26. In that respect, of this INR550 crores that you’re saying, how much would be from the river linking project?
Kaushik Khona
You are talking of, 25 26, right?
Pranay Chatterjee
Yes, FY ’26. Yeah,
Kaushik Khona
It should be in the range of around 200 just a second, around 220 or so. So sir, the current order book is around INR1,400 crores, which is INR1,000 crores of other orders and INR400 crores of the river licking one high-level. Yes. So this INR220 crores is that, so only INR300 crores to INR330 crores of the remaining INR1,000 will be executed next year. Is that understanding correct? No, out of that, there are some projects which are going to be executed in this 4th-quarter also. So quarter-wise reconciliation I will be able to provide you separately. But out of INR1,000 crore, which you just bifurcated, I guess around INR100 odd crores will be executed this quarter also, more than INR100 crores. So you had initially mentioned INR150 crores of reward linking if the regulation — regulatory approval comes, right? When you say this quarter, it’s already half gone, right? So I’m just trying to understand that if I do simple maths, INR150 crores of the reward linking, INR100 crores of others. So then the top-line would be INR250 crores for the quarter, Q4. So that’s something I would not — as I said, we don’t forecast, but that’s a plan as per the order book. That’s correct.
Operator
So thank you. Ladies and gentlemen, that was the last question for today. And I now hand the conference over to the management for closing comments. Over to you, sir.
Kaushik Khona
Thank you. I would thank each and every participant who have shown interest in our company’s performance and I once again thank on behalf of management that you have been quite participative into our progress. We wish that you continue to take interest into our project and we will be doing such investor conference call every quarter at least. We would be happy to answer any questions which you may have further, for which we would like you to also reach-out to Valerma Advisors. Anuj is the key person over there. And we thank once again all of you for being here. We also thank the team of Nimal Bank to have managed this call for us. Thanks a lot.
Operator
Thanks. Thank you. Thank you all. Thank you very much. Thank you. Thank you. On behalf of Nirmal Bank Institutional Equities, that concludes the conference. Thank you for joining us and you may now disconnect your lines. Thanks.