Concord Control Systems Ltd (BSE: 543619) Q4 2025 Earnings Call dated May. 15, 2025
Corporate Participants:
Vinay Pandit — Investor Relations
Gaurav Lath — Joint Managing Director, Chief Financial Officer
Analysts:
Akshay Patel — Analyst
Ayush Khanna — Analyst
Tanvi Bhandari — Analyst
Anurag Agarwal — Analyst
Nupur Surve — Analyst
Anirudh Kulkarni — Analyst
Karan Sharma — Analyst
Riddhi Agarwal — Analyst
Mahak Jain — Analyst
Vasu Patel — Analyst
Presentation:
Vinay Pandit — Investor Relations
Ladies and gentlemen, I welcome you all to the H2 and FY ’25 Post Earnings Conference Call of Concord Control Systems Limited. Today we have with us Mr. Gaurav Lath. Promoter and Joint Managing Director.
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 the management to quickly run us through the business and performance highlights for the period ended 31st March 2025, the growth plans and vision for the coming year. Post which we will open the floor for Q&A.
Over to you, sir.
Gaurav Lath — Joint Managing Director, Chief Financial Officer
Thank you, Vinayji, and good morning to everyone. And all the investors and analysts, I welcome all of you to the con call of our company, Concord Control Systems Limited. As you must have seen the results which have been published for the financial year 2025, it has been an exciting year for us. We will just run you through the highlights and the details of what has been the year unfolded for us. So Mohsin, can you please run the slides? So I’ll quickly take you through the key highlights of the year.
In this year we have increased our revenues by 113% from H2 ’24 to H2 ’25. Our EBITDA margins have also increased by 67% from the last half year to this half year of FY ’24 to ’25. Our net profits have significantly increased and our earning per share has increased by 97.6%. The overall revenue on the consolidated basis of the company for the financial year 2025 is at INR124.5 crores, which is a significant increase of 90% from the last year’s revenue. Our net profit has increased to INR22.60 crores, which is an increase of 77% from our last year’s numbers, this is the PAT. And our order book has also significantly increased. While we have been delivering and growing the company, you can see there is a top line increase of 90% in the revenues. Still we have managed to have a sustainable order book of more than INR200 crores as on 31st March 2024. And our debt to equity ratio, so we are almost — it is negligible or nil.
If I talk about the income statement for H2 FY ’25, the revenue from operations have increased from the last financial year to this year by 90%. The EBITDA margins, PBT, profit before tax and the PAT margins have further increased. You may please look at it at detail. The overall EBITDA has increased by 73% and the PAT margins have improved by 77% and grown from last year to this year. As I was talking about the order book, when we started this year we had an order book of INR196.57 crores. The orders received for this year are INR141.56 crores, which is a significant number for us as a company as we are growing and we executed INR125 crores worth of orders. So we still have a very sustainable order in hand on a consolidated basis.
As a management, Nitin and me have been focused on bringing more and more business to the company, developing new technologies and taking the company forward as we have always been committed to the growth of the company. This is what we have been delivering and this is what we want to deliver as we progress. This is already mentioned in our investor presentations but in our last presentations also, but I will share that in Advanced Rail, which was one of the subsidiaries we acquired in early quarter of 2024 — 2025, we have now been able to hold 100% of the company from 90%. When we started we acquiring this company this was focused on all the embedded electronics for locomotives and the business has shown significant progress and growth and that is where we are focused on.
If I talk about the business structure, our business is divided into five verticals now. Earlier it were only four verticals; Traction, Coaching, Locomotive and Wayside. This year we have added a new vertical from Metro businesses where we have done a German TOT. So there was we — in financial year 2025, we entered into a Transfer of Technology agreement with a German company to start the monitoring of overhead catenary as well as the entire asset of the OHE for the condition monitoring which will further enhance the the performance and will reduce the maintenance of such a critical asset of the Metros in the country. This is a fairly new one of its kind technology which we have brought to India under the Make in India initiative and the opportunity size is roughly about INR250 crores until financial year 2030. We have already received a lot of interest, a lot of inquiries in this particular product and business and and we are actively pursuing orders.
Now if I have to talk about the business of DPWCS, which is also known as Super Anaconda, which we are doing under Advance Rail. This is one of the key products as our offering from this company and the entire focus of the management, the technical team, the R&D, everybody is fully aligned to work more and more and ensure that we are able to support this business and grow the DPWCS market more and more in the country. As I had shared in my earlier meetings, DPWCS is a product which is focused on improving the freight movement in the country. When the Indian Government or the Indian Railways attach multiple freight trains into a single formation so that the throughput of the freight movement improves.
This is now becoming a very relevant technology in the current scenario and the focus of Indian Railways is increasing more and more in this area. It is a significantly large opportunity for fitment of these DPWCS or Super Anaconda products in the existing as well as new freight locomotives. The opportunity size in this business for the next four to five years would roughly be approximately INR2,000-plus crores. So that is why we we are working day in day out on focusing on this product and growing this business more and more in the country. We are in multiple advanced stages of finalization of certain orders around this product.
Now if I talk about Kavach, which we are doing as a business under Progota India Private Limited. There are certain key developments where soon we will be participating in a tender where the field trials section will be allocated to us. The prototype for Kavach 4.0 is under evaluation by RDSO and this is a very large business opportunity from Concord’s perspective which we are always focused on and relentlessly working in getting our SIL4 certifications, getting everything in order and everything is working in tandem and we are very hopeful of a better information and news in the recent times.
On the Wayside equipment which we are also doing under Progota. This is a product where we were getting a technology under Make in India from Spain. We are again as per our last commitments we are very well in our milestones and achieving all the milestones for getting an approval soon from RDSO and taking this forward. In WILD, this is a business which we initiated in the last financial year where we had joined hands with Indian Institute of Science Bangalore incubated startup where we wanted to develop this product, rather bring this product to the Indian Railways mainstream and we are very happy to share that we have already secured certain orders in this field and we are working towards finalization of the same in the recent weeks. So WILD is again a large opportunity. We are completely working towards getting the business soon and make it large. It’s a very critical technology for ensuring the safety of railways at high speed.
Mohsin, next slide please. When I talk about the way forward, we have added the Metro business opportunity in this bucket where we have added INR250 crores as an opportunity size for 2030 — by 2030. And roughly if you put all the business opportunities together it is a very sizable business where Concord as a team is focused and I’m sure we will start getting more and more business as we have already delivered last year. We’ll keep delivering our promise. If I talk about the way forward, we are still committed to grow at a scale of 40% to 50% in our revenue on year-on-year basis as well as from a CAGR perspective for the next three to five years. We are committed to sustain and maintain our EBITDA margins in the range of 20% to 25% which we have delivered in the last year performance as well and we will keep — we are very hopeful that we will keep delivering the same in future as well.
If I talk about the global perspective, as we are progressing we are aiming to position ourselves as a 360-degree solution provider for all the railway problems. When I say problems we are again just to reiterate, we are focused on the safety and the speed of Indian Railways and not only railways in India but with the help of WILD, with the help of Advance Rail, with the help of all the current technologies which we are building today, we feel that we are now well positioned to look at the global market and we are now aiming to explore more and more and more solutions, support system integration for global railway and locomotive clients. Our focus on hydrogen and battery-powered locomotives is also increasing. And we feel that there will be a significant milestone which we will achieve in the coming years around hydrogen and battery-powered locomotives, which again is a — is not only an Indian Railways business but a global business and with a lot of potential.
I now request the floor to be opened for questions with the disclaimer that we will not be able to give specifics about orders or transfer of technology due to the competitive and confidentiality reasons, but we are happy to answer all the questions which we can.
Questions and Answers:
Operator
Thank you, Gaurav. [Operator Instructions] We’ll take the first question from Akshay Patel. Akshay, you can go ahead.
Akshay Patel
Am I audible sir?
Gaurav Lath
Yes, you are. Please go ahead.
Akshay Patel
Yes, sir. Congratulations for the strong set of numbers. My first question is about the other cost which has steeply increased compared to the last half, compared to half one of FY ’25. So what is the reason for the same?
Gaurav Lath
Just give me a minute.
Akshay Patel
Our other expenses were INR3.54 crore in half one of FY ’25. And it has been increased to INR9.76 crore in this half.
Gaurav Lath
I will share that information. I don’t have it handy but I will definitely share that information.
Akshay Patel
Sure, sir. And sir, my second question is about how much order book addition we are expecting in FY ’26 from current INR212 crore?
Gaurav Lath
Can you please repeat that question, Akshayji?
Akshay Patel
How much order book addition we are expecting from the current INR212 crore order book?
Gaurav Lath
Generally in our order book we focus on ensuring that we are able to execute orders within 12 to 18 months. So that will be the guidance and way forward.
Akshay Patel
Yeah, that’s right, sir. But what I am asking is that what is your visibility of order book addition, new orders coming, new orders flow for this current financial year FY ’26.
Gaurav Lath
It will be significant.
Akshay Patel
Okay. Fair enough, sir. And sir, my last question is that we have specified the different market potential of all our different products. So what can be our market share in all of our addressable market business potential in different, different products? Currently we have seen that our potential market — addressable market is around INR47,000 crore.
Gaurav Lath
So Akshayji, I think this is a very valid question. Thanks for asking. But Railway operates in an area where there are multiple competitors and multiple products. And it is very difficult to define an SOB or a Share of Business overall as a INR47,000 crore market. In few products we have two competitors. In some products we have only one competitor. In some products we have about three to four competitors. In some products we have eight competitors. And it is very difficult to give a number to it though railway also operates in a part one and a part two, basically an approved and a developmental category. So at a lot of places we are an approved category vendor which gives us access to 80% of the tendering. And we are very well positioned to to grow in that segment.
Akshay Patel
Okay, so yes. So follow up on that would be like what has been our share of business in all our products in the past years and what are the opportunities? And can you please specify about our competitive edge to where in which segment we are stronger than our competitor like in technology or like in products and something like this?
Gaurav Lath
Thank you again for asking that. Our edge is our technology and our design and research team. Today as we speak, we would have more than, all put together, Concord, Advanced Rail, Progota, all put together we would have a strength of more than 60 or 70 plus engineers, only focused on the R&D side, which gives us a very strong advantage and edge when we talk about getting the technologies, ensuring that everything remains in house. We maintain our IPs. We ensure that the cost is optimized from time to time within the technology. So that always remains our edge in our business.
Akshay Patel
Okay. Fair enough, sir. Thank you so much for the answers and all the best for FY ’26.
Gaurav Lath
Thank you. Thank you, Akshayji. And I will definitely get back to you with the other expenses question.
Akshay Patel
Sure, sir.
Operator
Thank you. We’ll take the next question from Ayush Khanna. Please go ahead.
Ayush Khanna
So sir, my first question is that can you explain a bit more on know your new Metro business and how do you plan to synergize the same with your other businesses?
Gaurav Lath
So Ayush, thank you again for asking that. Metro is also a large business in terms of railways as a whole. And it is, I would say a very closely integrated industry within the railway sector. So for us, synergizing and working with railways is not new as well as working with Metros is also not new. And we have a very high level of competency. And plus every day we are increasing the team size, we are building the competencies. As I was talking about the R&D and everything, as I mentioned that the German TOT is under Make in India. So a lot of technology will be brought to India and then developed and supplied to the Metros and then serviced. So we’re well positioned to do that.
Ayush Khanna
Okay. So also in the DPWCS, how do you arrive at the opportunity size of INR2,500 crores? So that is, you know, per local kind of cost opportunity. And like how many players are there in this category?
Gaurav Lath
Today, I think there are three approved vendors. We are one of them. And if you talk about a locomotive, there would be a population of 13,000 plus locomotives in the country where 1,200 new locomotives are made every year. Out of this number, at least 50% to 60% — 50% would be freight locomotives. And all the freight locomotives, as I was mentioning earlier while explaining DPWCS has to undergo a retrofitment. And because railway is focused on increasing the throughput and the average movement of freight in the country. So to ensure that all the freight locomotives will be at some point converted or retrofitted with DPWCS as a product, which is roughly a product worth INR20 lakhs to INR35 lakhs depending on the specification and design, multiple subsets put together. So that is the size of the opportunity and that’s how we arrive there.
Ayush Khanna
Okay, sir. Thank you.
Operator
Thank you, Ayush. Sir, we’ll take a question from the chat. Recently HBL Power Limited got RDSO approval for Kavach 4.0. Is Concord also preparing for 4.0 version or ahead of it as well if SIL4 certification is received already for Kavach?
Gaurav Lath
Thank you for asking that question. Yes, we are working for Kavach 4.0. That is the latest spec of RDSO, which is the the research and design body of railways and the approval authority for Kavach in the country. That is the latest spec and we are working on the same spec. And if you — if to talk about the SIL4 certification, SIL4 certification is a parallel activity which has been ongoing for a few months and we are very well positioned in that as well.
Operator
So the other question from Sailesh Jain is that Ministry of Railways is rolling out 2 x 25 kV electrification on all new high density and high speed routes. Is company expecting orders related to it in H1?
Gaurav Lath
We already have a product basket under traction for 2 x 25 kVA. Rather we would be one of the first companies or the early ones to move ahead and develop an entire product kitty around traction products for 2 x 25. And we are receiving orders as well as executing them from time to time. And we are very hopeful that the order size will keep increasing as the 2 x 25 installation increase in the country.
Operator
Okay, thank you, sir. We’ll take the next question from Tanvi Bhandari. Please go ahead.
Tanvi Bhandari
I just wanted to ask about your working capital cycle. What do you expect this going forward given that our inventory and debtors have increased significantly. So just some light on this part.
Gaurav Lath
Tanvi, thank you so much for bringing this up. After acquisition of Advanced Rail, we are — in Advanced Rail we are more focused on embedded electronics and when we — any company manufactures embedded electronic based products and solutions, definitely it requires a lot of — it is a niche area and has a lot of value-add in it. But at the same time it comes with a lot of import as well as — for a lot of electronic components which are currently, the capacities are being developed in the country for which the inventory cycles increase as well as these products involve commissioning and installation at site of these products, it is just not a product which is — so some of the products are to be installed and some of the products are to be just sold as to — directly to the railways.
So when the installation comes, a certain portion of the payment comes after the installation and commissioning is completed which is done by a large team of service engineers and service support and the field team, which we have and that is also a sizable number of team, which — as a capability I would say we would be the ones who would do the same installation much faster than than others. So again we are very hopeful that it will keep — we’ll keep doing our best there.
Tanvi Bhandari
So just a follow up question. So the working capital cycle will approximately remain around the same range?
Gaurav Lath
Yes.
Tanvi Bhandari
Because of this niche product?
Gaurav Lath
Yes.
Tanvi Bhandari
Okay. And just one more question. So given the huge industry opportunity that you have, so going forward, do you again plan to take any further debt or would you still manage from internal approvals or maybe some more fundraise or something?
Gaurav Lath
Tanvi, a very relevant question. Thank you for asking that. Definitely as and when the business needs arises, we will look at fund availability as well as options of how we can raise through debt or through equity. And we will pursue whichever is in the best interest of the company.
Tanvi Bhandari
Okay, got it. Thank you.
Operator
Thank you, Tanvi. We’ll take the next question from Anurag Agarwal. Please go ahead.
Anurag Agarwal
Hi, sir. Am I audible?
Operator
Yes, please.
Anurag Agarwal
So last time we met we spoke, you mentioned that we’ll probably get the Kavach approvals by H1 FY ’26. Do you think we are still on the same timeline?
Gaurav Lath
Sir, I think I lost you. Can you please repeat the question?
Anurag Agarwal
I asked the last time we met you mentioned that we’ll probably get our Kavach approvals by H1 FY ’26. Are we still on the same timeline?
Gaurav Lath
We are progressively working towards it and we are well within our timelines.
Anurag Agarwal
Okay. Another question. This half year leave we saw a significant decrease in our margins. What could be the possible reasons for that?
Gaurav Lath
Can you please share the data? Because…
Anurag Agarwal
Last half yearly we were at 28%. Last year we were at 26%. This year we are at 20%. Despite an increase in revenue, I thought we’d probably gain margins due to operating leverage.
Gaurav Lath
I will get back to you with an answer, but immediately, if I have to answer that, I would say that you have to see it on an annualized basis, not on a half year to half year basis because Advance Rail was an acquisition in between and there were multiple things which were happening around it. So you have to look at it from an annualized basis, not on a half year perspective for this year.
Operator
Got it. Last question, sir.
Akshay Patel
Can I add one thing on this? Sir, just…
Gaurav Lath
Akshayji, just before you answer that, I’ll just complete my answer with Anuragji.
Akshay Patel
Sure. No problem.
Gaurav Lath
We still are maintaining an annualized margin as per our guidance of 22% to 25%.
Anurag Agarwal
Correct. Last question, sir, on my end. Since our strategy has been to get a lot of technology transfer from international companies, what are some of the criterias you know, assessed by these companies and how do we fare in those criterias?
Gaurav Lath
There are multiple reasons for that. One of them is how deeply rooted we are into the railway ecosystem. When I say that, I mean that railway is divided into multiple zones and multiple production units for coaching as well as for locomotives across the country. Along with multiple metro installations and new metro development across the country. It’s a, it’s a wide sector in itself and someone having offices at almost each of these production units and people around them plus having a penetration in the overall large ecosystem from an OHE perspective to traction perspective to a coaching perspective to multiple sectors which we have tried and built. There are very few companies who are positioned in this manner.
And when you grow to any global company, everybody wants to work with India, thanks to Modiji and our current Indian ecosystem, India is poised for growth. And the market opportunity in India is much larger than many other countries abroad. So everybody wants to work in India. And they look at companies which are compliant, which are listed. Everything adds up. Your financial strength, your knowledge of the subject, your research team, everything adds up to to reach there. And I think God is kind that we are in the right place at the right time.
Anurag Agarwal
Got it. Thank you so much, sir.
Operator
Thank you, Anurag. We’ll take the next question from Nupur Surve. Please go ahead.
Nupur Surve
So where I are we on Kavach and by when do you see yourself being in the orders? Since I believe the development to approval — to approved cycle is long and will we end up losing a major part of this opportunity of INR40,000 crores? Since we have seen three to four players receiving large orders in the area of business.
Gaurav Lath
Nupurji, a very valid question. And I think that is a question which many of us would want an answer for. So thank you for raising that. As I was mentioning earlier, Kavach is a very, very large opportunity. And it is not for two or three or four or five players, but something which can be commissioned in the interest of the country as a nation to become a safer railway by at least 10 to 15 such Kavach Manufacturing companies and installation companies. Now to talk about specifically about us. We are at the right speed. I had shared earlier also that we are undergoing prototype evaluation of our Kavach 4.0 by RDSO which is a very big forward looking milestone for us. At the same time there are certain sections which will be allocated for field trials and for which the tenders will be out soon as we are hoping for the same and working towards it as a team. So I don’t see that Kavach is an opportunity where we are losing pace. We are well within our time frame to achieve what we want to achieve.
Operator
Thank you, Nupur. Sir, we’ll take a question from the chat. It’s from Faisal Khan. He asks in the last call the management had indicated that multiple acquisitions are in the pipeline. Can we know the status of these?
Gaurav Lath
Thank you, Shubham for asking that question. Faisal for asking that question. Sorry. Faisal any acquisition needs a lot of due dil and a lot of compliance. Plus we see ourselves as promoters of the company but at the same time custodian of public money. So we have to invest very carefully in any opportunity which knocks our door. Multiple such opportunities are being evaluated and in due course whenever we are through with any firm commitments we will definitely be sharing the news at large.
Operator
Thank you, sir. His second question is LiDAR. LiDAR technology is another big area within railways. Is Concord looking at tapping this market?
Gaurav Lath
Yes, LiDAR is an opportunity, a sizable opportunity. Though we are already working on many such sizable opportunities. But to answer your question in a single statement, yes, we are evaluating options.
Operator
Thank you, sir. We’ll take another question from the chat. It’s from Sailesh Jain. He asks Government is developing thousands of kilometer high density and high speed routes and rolling out 2 x 25 kV electrification. Why traction product market has taken only INR550 crore. The company is quite strong with traction products. Market should be more bigger.
Gaurav Lath
[Foreign Speech] There are certain developments which we are working on for the past few months. As and when we are able to roll them out I’m sure we will have better opportunities and larger time to target for.
Operator
Thank you, sir. We’ll take another question from Anirudh Kulkarni. Please go ahead.
Anirudh Kulkarni
Anirudh, this side. I manage a family office in Mumbai. Firstly, a suggestion from my end. Since we come at a half yearly basis if the management can come ahead and give a quarterly top line and bottom line if not a detailed balance sheet and P&L but at least a sense on the revenue and the bottom line that would be helpful. Even on the con call side if the management can come ahead on a quarterly basis would be helpful and would be in the interest of the investors as well. That was one.
On a question side my topmost question would be on the margins which has declined at an annual basis from 26% to 23%. If you can maybe come back. I think others have also asked the same question. So what was the reason behind it? And secondly on the order book size, any new orders which were added in the second half. If you would like to enlighten us on that.
Gaurav Lath
So Anirudh, first of all, thank you for a constructive feedback and we will definitely work as a team towards it and we’ll try to move from half year to a quarter to quarter basis. Anyways, we will be positioned for main board in the next few quarters. So yes, we will definitely work towards it. On the second hand, second point you mentioned about the order book, right?
Anirudh Kulkarni
That’s correct. On the order book, yeah.
Gaurav Lath
Can you please repeat the question again?
Anirudh Kulkarni
I think in the H1 we had an order book of tentatively INR200 plus odd crores. As on date, what would be the order book and if any new orders have been added in the H2.
Gaurav Lath
So I would not have an exact number off-hand for H2, but during the year we received an order to the tune of INR141.5 crores. And as of 31st March our unexecuted order book stands at INR212.5 crores which is nearly 1.7 times of our revenues of financial year ’25.
Anirudh Kulkarni
Understood. So the additional INR145 crores has been added in the second half?
Gaurav Lath
I would still have to check that.
Anirudh Kulkarni
All right, understood. My follow up question would be on the capex. If any near term capex, does the management want to — is looking at adding any capex right now?
Gaurav Lath
I think I had answered that question earlier. Capex is always a part of any new development or any new research which is happening and an ongoing activity. So we are invested there. Plus we are increasing capacities from time to time. So as and when the business requires anything the capex would be arranged and we would be investing in capex as per business needs.
Anirudh Kulkarni
All right. My last question Gauravji is on the tendering process. I think the first half was a slowdown in the tender flow out from railways. How was the H2 and in the near term, the H1 of FY ’26. Is it expected to have more tenders right now from the railways?
Gaurav Lath
It is not very well outlaid that which H1 would have or H2 would have a higher share of orders or tendering coming in. But generally, railways are into yearly planning when it comes to production units and we tend — we generally see like for example for coaching you’ll see tenders coming more tenders coming out from September to November. For locos, it will be a different cycle. For some pink book requirements, there is no seasonality of these tenders and since our sectors are split into various different verticals, it is very difficult to comment on a H1, H2 basis.
Anirudh Kulkarni
Understood? Understood.
Gaurav Lath
Yeah. Just to reply to the earlier question of yours. We received INR60 crores of order in H1, which means effectively it would be about INR152 crores of orders received in H2.
Anirudh Kulkarni
All right. Out of the total outstanding of INR200-odd crores, INR152 crores was the additional amount.
Gaurav Lath
Yes.
Anirudh Kulkarni
Got it. And on the margins maybe you can come back later for the decline in the margins from 26% to 23%.
Gaurav Lath
No, so we answered that question that you have to look at it from an annualized perspective.
Anirudh Kulkarni
This is at the annualized basis which I’m asking.
Gaurav Lath
So from an annualized basis we have maintained our margins from 22% to 25%.
Anirudh Kulkarni
All right. From the perspective from March ’24 the margins were 26% and March ’25 it is at 23%. So that decline of 3-odd percent is what I was asking. Right? So it’s is in the guidelines of the range. I understand but the reason for the decline is what I was looking at.
Gaurav Lath
So as I mentioned earlier also Advance Rail, the company when we acquired was a much smaller, much less efficient working which obviously would take time as a business cycle to evolve. So it will take its own time to further evolve.
Anirudh Kulkarni
All right.
Operator
Thank you, Anirudh. We’ll take the next question from Ayush Khanna, please go ahead.
Ayush Khanna
Yeah, just a follow up question that by when do you see yourself at INR500 crore revenue and how would this business look individually at INR500 crore?
Gaurav Lath
So Ayush, we are very ambitious and I think that is clearly evident in our few years of performance. We will not leave anything unturned to reach to INR500 crores as and when we are able to. But today if I have to talk about I can only say that we will maintain our CAGR growth in revenue. But all these opportunities, DPWCS, Kavach, all, all the opportunities are very well positioned to make us reach there much faster than we actually want. So let the time come.
Ayush Khanna
Okay, thank you so much.
Operator
Thank you. Ayush. We’ll take the next question from Ridhi Agarwal. Please go ahead.
Gaurav Lath
Ridhi, can you ask the question.
Operator
[Operator Instructions] We’ll take the next question from Karan Sharma. Please go ahead.
Karan Sharma
Thank you for the opportunity. Sir, I just want to ask at 40% to 50% CAGR you will potentially be doubling your revenue every two years. But this may also put some significant strain on your current management team. So what are you doing on that front, I mean on the management side to run all these businesses?
Gaurav Lath
Karan, thank you for bringing that up. We are constantly adding the team not only at the management level but at the execution level. At all the tiers we are creating new organo charts. We want to keep the organization really lean but at the same time more efficient plus bringing like for example for the Metro business we are adding a full team which is focused on Metro and have an experience in the metro vertical. We are adding few people from the loco side who are experts on the technology as well as though we have a lot of people in-house but that is where we are focused plus we are also upskilling a lot of current team members and promoting them to their deserving roles. So I think it’s a journey. You can’t really stop when once you [Foreign Speech].
Karan Sharma
So basically in management team also I think you’ll be getting sectoral experts and they will be like guiding the team to move forward?
Gaurav Lath
Absolutely.
Karan Sharma
All right. All right, sir. And second sir, like over and above this Advanced Rail manufacturing facility, what are our plans to set up manufacturing for other products? And I mean what’s your plan towards that?
Gaurav Lath
So Karan, I answered that. As and when the capacity requirements increases we will keep adding capacities as and when in whichever field, whichever sector it is required. We are not hindering from that anywhere. Currently we are well positioned. We don’t see immediate requirements but if it is required we are adding people team, we are adding capex, we are adding capacities, plants, whatever is required.
Karan Sharma
Okay. So I mean any visibility on any other products that you are planning for?
Gaurav Lath
Multiple research and developments are going on. Once they are developed, we will definitely share.
Karan Sharma
All right. Sure. Sure. Thank you.
Operator
Thank you, Karan. We’ll take the question from Riddhi Agarwal.
Riddhi Agarwal
Can you hear me?
Gaurav Lath
Yes, Riddhi.
Riddhi Agarwal
Yeah. My first question is what operational or financial synergies do we expect to realize from the acquisition of ARCP?
Gaurav Lath
Riddhi, there is some noise. I missed the last part.
Riddhi Agarwal
Okay. Yeah. Sir, my first question is what operational or financial synergies do you expect to realize from acquisition of ARCPL?
Vinay Pandit
From the amalgamation of Advanced Rail.
Riddhi Agarwal
So yeah, from the acquisition of ARCPL.
Gaurav Lath
Multiple advantages of that. We have also shared the benefits and advantages in our outcome of the board meeting. But just to share, it will improve our management efficiency, it will improve our overall financial planning and it will also improve the team’s efficiencies and will optimize certain cost because of which operating at different company levels, you operate on a single level which is always beneficial from a company’s perspective.
Riddhi Agarwal
Just a follow up question, sir, are there any integration risk of one-time cost due to this merger?
Gaurav Lath
No, I. I don’t see that.
Riddhi Agarwal
Okay. My last question would be there was a significant increase in reserves and surplus. So can you elaborate your sources on this? And also where would be, where would you be using this reserve? Maybe in internal growth or dividend paying.
Gaurav Lath
So Riddhi, I think the significant increase in reserves and surplus is due to the premium when the preferential as well as the acquisition happened. And what was the next question?
Riddhi Agarwal
My next question was how you would be using these reserves. Maybe for dividend paying or for internal growth.
Gaurav Lath
So with our ambitious plan I think we have a lot of opportunities which we are currently working on. So we will use it mindfully as and when we are able to.
Riddhi Agarwal
Okay. Thank you so much and all the best for the coming year.
Gaurav Lath
Thank you. Thank you, Riddhi.
Operator
Thank you, Riddhi. We’ll take the next question from Mahak Jain. Please go ahead.
Mahak Jain
Hi, Gauravji. So I have few questions. The first one being like can you please share the bifurcation — revenue bifurcation and the margins from each of the business segments like which one being the major contributor and from all other segments like and how the new vertical that have been added to the business is going to contribute to the bottom line and the top line of the business?
Gaurav Lath
So we have, Mahak, thank you for the question. We have already shared the standalone versus the consolidated statements. But just to share I think we did a turnover of about INR73.92 crores in Concord Control Systems Limited as a standalone and INR51.21 crores in Advanced Rail where the bottom line on a profited after tax basis was INR15.07 crores in Concord and INR8.11 crores in Advanced Rail, respectively.
Mahak Jain
And how is the new vertical segment of the Metro is going to contribute to the top line and the margins or the bottom line of the company?
Gaurav Lath
So any technology which is new to the country as well as with the current scenario when it is developed in India going forward we see a significant margins, significant improvement in margins once it is indigenized which happens to any technology which is done under Make in India. And from a top line perspective it’s a target market of almost INR250 crores in the next four to five years. So a sizable contribution should come from there and we are one of the first movers so we should take advantage of it.
Mahak Jain
Okay. I just wanted to confirm like is company have any plans to shift to main board and if yes, when are we planning for the same?
Gaurav Lath
So as per compliances I think we have to complete three years on the exchange before migrating to any larger platform which we will be completing on October 10, 2025.
Mahak Jain
Okay. So we are planning to shift within a year or not or like we are planning for some way afterwards.
Gaurav Lath
If the law permits why not?
Mahak Jain
Okay. And the last question that I wanted to ask like you have said that you have received a first order under Concord Labs for the wayside equipments. Could you kindly elaborate about what’s the order that you have received in?
Gaurav Lath
Due to certain confidentiality reasons and competitive scenarios, we will definitely be sharing details soon.
Mahak Jain
Okay. Okay. Thank you so much Gauravji and all the best for the future.
Gaurav Lath
Thank you.
Operator
Thank you, Mahak. Sir, we’ll take a question from the chat. It’s from Sailesh Jain. He is asking Progota India Private Limited is an associate company. Are we planning to increase investment in it and make it wholly own subsidiary?
Gaurav Lath
Saileshji, I have answered this question multiple times. Concord is well positioned for multiple opportunities and multiple buckets, Kavach being one of them. And from time to time we keep evaluating our equity positions in each of our associate or acquired or subsidiary companies. And as and when we find a requirement or a development which requires further enhancement, we act on it. As custodians of public money, we are always cautious in investing and growing the business equity or ownership. But we will keep doing it as and when an opportunity or a need arises.
Operator
Thank you, sir. We’ll take question from chat from Tanvi Bhandari. She’s asking why the promoter holding declined from 70% to 67.06% and also what was the main object of doing private placement?
Gaurav Lath
Thank you for asking that. The promoter holding declined because of fresh preferential allotment to increase the fund requirement of the company. And as we were growing the company and we acquired in the last year plus after acquiring Advanced Rail in the first quarter of this year, we immediately improved the operations and invested in the capital which is evident from the balance sheets as well as financial statements which we have shared. And the preferential funds were raised from marquee investors who participated. And it’s always good to have mentors and advisors and people who are keeping you on track and can be a vigilant eye for detail for you to keep performing.
Operator
Okay, she’s asking further that is it to a related party this private placement.
Gaurav Lath
No.
Operator
Okay. Thank you, sir. We’ll take the next question from Vasu Patel. Please go ahead.
Vasu Patel
Hello, sir. So my question is regarding the Kavach because it has been hotspot area for now. So once we come under the approved vendor list. So how much order we are expecting in future?
Gaurav Lath
Vasu, it’s a valid question, but today I will not be able to answer this because of multiple reasons. As and when we fare in — as I have been telling earlier in this call that our speed of getting approved and getting everything in order in Kavach is very well, we are doing what we can and we are at the right pace. So everything right will happen at the right time.
Vasu Patel
Okay. And my second question is regarding what are the key differences in our approach compared to as we know we have big players like HBL and KEC Internationals that will help us to secure the orders? What we are doing differently from them.
Gaurav Lath
Two things. One, any government tender is a very transparent process where you have to technically win and qualify for the tender and then you have to financially win the bid. So our key differentiator would be our technology. And since everything is in-house, we have really worked hard to make a product which is if everybody is considered at par, we will also say that we are at par or better than others, but at a very, very low cost we have developed the entire product. So we will have its own competitive advantage when we reach there.
Vasu Patel
Oh, so basically we have lesser margin than other players. Right?
Gaurav Lath
No I said lesser margin. Higher margin.
Vasu Patel
Higher margin.
Gaurav Lath
Lesser cost.
Vasu Patel
Lesser cost. Yeah, like that. Okay, got it. Thanks, sir.
Vinay Pandit
Yeah. Hi, Gaurav, I think that is the last question for the day. Would you like to give any closing comment before we end this call?
Gaurav Lath
Thank you, Vinayji. To all the investors, thank you so much for all the questions. Your continuous love and support and the kind of number of people who join the call is always encouraging. Nitin and me both, along with our entire team of Concord, Advance Rail, Progota, all the companies put together are working day and night to bring more and more business, more and more energy, and more and more revenues as well as bottom lines to the company. We will keep doing that without deterring from our goals, and we will keep delivering and keep growing the way we want to.
So thank you so much for your continuous support. And we will always act as custodians of public money, and we will invest very carefully in any opportunity which comes our way. Thank you. And thank you to the Kaptify team for putting this all together.
Vinay Pandit
Thank you, sir. Thank you to all the participants for joining on the call, and thank you to the management team. That brings us to the end of today’s conference call.