Indo Farm Equipment Limited (NSE: INDOFARM) Q4 2025 Earnings Call dated Jun. 30, 2025
Corporate Participants:
Unidentified Speaker
RS Khadwalia — Chief Managing Director
Anshul Khadwalia — Sales & Marketing Head
Analysts:
Unidentified Participant
Presentation:
operator
Ladies and gentlemen, Good day and welcome to the earnings call of Indofarm Equipment Limited for the financial year ended 31 March 2025. So the floor will be opened for questions once the management’s presentation concludes. Please note, today’s call is being recorded and may include forward looking statements based on current expectations. These involve risks and uncertainties that could cause actual results to differ materially. The company is not obligated to update such statements except as required by law. Listeners are advised not to place undue reliance on them. So, representing the Indo Farm today we have from the management Mr.
R.S. kadwalia, the chairman and MD Mr. Anshul Kadwalia the whole time director Mr. S.M. singla, the finance head, Mr. Varun Sharma, the CFO Ms. Navpreet Kaur, the Company Secretary and Compliance Officer. So without any further ado, I would now like to invite Mr. R.S. kadwalia to share a brief overview of the company’s performance and provide insights into our operations. So thank you and over to you sir.
RS Khadwalia — Chief Managing Director
Good evening everyone. A warm welcome to all our esteemed investors, analysts and stakeholders joining us today. Thank you for being a part of this open ended investor call. For those who are new to Indo Farm, let me brief introduce about the company. Indo Farm is a 24 year old organization headquartered in Himachal Pradesh. We are engaged in manufacturing of tractors, pick and carry crane serving both agree and infra sector. In addition we have a wholly owned subsidy NBFC Finance which supports our ecosystem by offering the tailored financial solution required to our customers especially for tactile. The last quarter has been a landmark for the Indo firm. We took a major step forward by going public. It was a proud and historic milestone in our company. For our company and we are grateful for for the trust you have placed in us.
We are pleased to share the highlight of our performance of Q4 25 and the full year FY25 quarter 25 Q4 quarter 25. The revenue from operation was 12516 cr and in the whole year 366.77 cr. This is standalone basis and consolidated basis. 129.97 crore for the quarter and 387.19 crore for the full financial year. Profit after tax the last quarter 13.29 crore and the whole year 22.61 crore. This is a standalone basis and consolidated basis. 13.51 and 23.55 crore along alongside the financial performance. I am happy to share that our new manufacturing facility being set UP is in progress.
Well, the expansion will significantly enhance our production capacity of pick and carry cranes by 3,600 numbers per annum. This reinforce our long term vision of becoming a major player in construction equipment segment. In line with our strategic growth plan, we are currently in the process of acquiring tower crane technology. We have already signed the agreement for technology transfer. The core manpower for this vertical has already been on board. And we are confident that this will add significant value to our construction equipment portfolio going forward. We look forward to taking you through these development in detail and answering your questions. I now open the floor for your questions. Thank you very much.
Questions and Answers:
RS Khadwalia
Thank you. Kadwalia Ji. So we will now begin the Q and A session. So participants who wish to ask a question may kindly raise their hand. Alternatively, you can type your questions in the Q and A tab below. We will take the first question from Sunny Kumar.
Unidentified Participant
Hello. Hello.
operator
Yes, you can ask your question.
Unidentified Participant
Hello.
RS Khadwalia
Yes. Your sound is little.
Unidentified Participant
Am I audible now?
RS Khadwalia
Ecosystem. Yeah, yeah. Can you repeat again please?
Unidentified Participant
What is the timeline for CAPEX completion?
RS Khadwalia
This is in this financial year, third quarter. We are expected to start the production facilities and. Yeah.
Unidentified Participant
Yes sir. And what will be the revenue from this capex?
RS Khadwalia
In the last quarter we are expecting around 40 to 50 cr from that plant.
Unidentified Participant
From that whole plant, what will be the revenue guidance?
RS Khadwalia
You know the capacity installed capacity will be 3,600 numbers crane. Yes sir. You take a average value of a crane around 2425 lakh rupees per crane. You can calculate this figure. But in the first year the capacity utilization in 26, 27 the capacity utilization we are expecting around 50. Capacity utilization we can achieve.
Unidentified Participant
Thank you sir. That’s it from my time.
operator
Take the next question from Maniki Advisory.
Unidentified Participant
Hello.
operator
Yes, you can ask.
Unidentified Participant
Thanks for the opportunity sir. I just have one actually two questions. One is what is the sales figure for the tractor business that we achieve every month? Can we disclose that on the exchange? Like how other OEMs are doing for the tractor business as well as the cranes business. And the second question is pertaining to the JV that we recently announced or the technology transfer rather with the Chinese company. So is that in the construction the tower crane that is used in the construction business. And if yes, what is the way forward for that business that we are looking at? Thanks.
RS Khadwalia
Okay, in the first your first question we have noted the suggestion. We’ll. We’ll see to it. Okay. Regarding sharing of the figure chapter figure. Okay, sure. Next is basically this Tower crane. Tower crane is used for construction for high rise buildings. Mainly the 90 demand come from here, maybe 10, 15 demand come from the other infra big project like power plant and bridges construction from those areas. And as the demand is increasing very rapidly since last three years, the demand has grown rapidly.
The growth was there. It’s almost growing at the rate of 50%, 60% because of the vertical kind of construction is going on in all big metro city. Because of the land is getting more expensive leaving this thing. And there is a major. Not many players. There is only few players are in this sector. Earlier some more company were there. Chinese company were there, but now they are not. It is not viable to for them to manufacture in China and then sell in India. So we. We want to start it locally. We have already done some trial long back.
But now we want to come in a big way. Therefore we have had a technology tie of agreement with the company. And we are in the process we are going to bring produce this product maybe in. In the. In this year it will be fully tried out.
Unidentified Participant
Got it? All right. Okay. And sir, so coming back to the tractor business. What is the total install capacity of the tractor unit? I mean say yearly or something. If you can give some throw some light on that.
RS Khadwalia
The EMV capacity is 12000 number sectors.
Unidentified Participant
And what is the capacity utilization? Sir,
RS Khadwalia
capacity utilization is less. It is. It is less. But now we are increasing this capacity utilization. Because the back end used in the crane is the same produced by the tractor unit only. You know, we are putting a installing a new facility 3600 crane. The maybe in the next year from the existing facility. If you’ll produce around 1500 numbers and 18 numbers from that that unit it become almost a 3300 numbers total trains. Okay, 3300 numbers. Maybe 3000 crane. The back end used from the sector unit only. If you’ll sell 4,000 tractor only in the next financial year then 3,000 backhand we make from here.
Then it become almost 7,000 numbers. Equivalent to 7,000 numbers. Then the capacity utilization bill goes more around plus 60%. Okay, understood. Is less. And we are. We are therefore we are working on the marketing how to increase the the number sale. Because the product is ready, we are ready and we are investing in the marketing.
Unidentified Participant
No, no sir, I actually was. My question was for the tractor business and I think so you clubbed it with the the crane business. So just coming to the tractor business. So you said the install capacity is 12,000 units. So I just want to know what is the utilization? Is it 50, 60 or what is it exactly
RS Khadwalia
currently around 30% plus 30. 30 if you consider only tetra green. Because the transmission and engine is produced by the tractor only. It is almost not having only sheet metal and some part basically. But the whole transmission is the mover which is used in the crane is of tractor only. That’s why I’m telling you that’s I have added basically the crane capacity which we are increasing the crane capacity. So it will definitely support us to enhance the capacity of capacity utilization of tractor plant.
Unidentified Participant
Got it? Got it. All right, thank you sir. I’ll come back for any further questions if I. Best of luck. Thank you.
operator
The next question from Deepak Buddha.
RS Khadwalia
Yeah, yeah. Audible, audible.
Unidentified Participant
Okay. Okay. Thank you very much for this opportunity and taking time out for this call. So just wanted to understand first upon the clean side, current our capacity is 1200 units. That’s right. And we are increasing it from 1200 to 3600.
RS Khadwalia
Sir. 1280 is in existing plant is the capacity current capacity 1280. But we are trying to increase some numbers here in this existing setup also. Okay. For this financial year 2526. Okay. And new facility which we are going to install that will be 3,600 additional capacity.
Unidentified Participant
Okay. Okay. So. So. So my capacity will increase to around close to 5,000.
RS Khadwalia
Close to 5,000 numbers? Yes. Yes.
Unidentified Participant
Okay. Okay. So so I mean at full utilization level we can do around. Close to around 1250 crores of revenue right? From. From this, the. The entire. Both the facility together.
RS Khadwalia
Yeah. From the crane. Yes.
Unidentified Participant
From the production side,
RS Khadwalia
rupees average machine cost and 5000 number you can multiply.
Unidentified Participant
So that comes to about 1250. Yes. So. So when we say FY27 a new facility will be targeting 50 utilization level. So 1800 is the unit that we’re targeting there plus existing 1200. So is 3000 the unit we will target in FY27 in terms of sales in cranes?
RS Khadwalia
Yes. 20, 26, 27. Yeah. Crane
Unidentified Participant
3000 units. Right?
RS Khadwalia
Around 3000 numbers. Yeah. Plus.
Unidentified Participant
Okay. Okay. And how the margin in cranes, what sort of EBITA margin one can expect in cranes?
RS Khadwalia
Crane Abita margin is around 14.4 last historical
Unidentified Participant
and we expect to maintain it even after the commissioning of this new facility.
RS Khadwalia
Yeah, maintain it.
Unidentified Participant
Yeah. Okay. And. And what sort of volume we targeted for FY26 in terms of crane
RS Khadwalia
FY26 26. You know, here we are planning around from the existing facility. We are expecting to grow around 30% in tecture and crane together.
Unidentified Participant
Okay. So FY26 as a whole we are targeting 30 group including both tractor and cre.
RS Khadwalia
Yes. Yes. Yes.
Unidentified Participant
Okay. And what was the capex that that they have spent in this 3600 unit
RS Khadwalia
is a 70 crore in the plant and machinery only Land we have earlier acquired earlier required. Including me land and building. And the machinery. Building and machinery. Sorry. I’m sorry. Yeah. It’s a building machinery. I.
Unidentified Participant
I got it. And. And what’s the average value per tractor?
RS Khadwalia
Selling price?
Unidentified Participant
Yes, whatever that. 24. 25. Okay. So what was the corresponding number for tractors?
RS Khadwalia
It’s 6 lakh plus
Unidentified Participant
6 lakhs.
Unidentified Participant
Okay. And how should we look at the trajectory of utilization level going forward? I mean it was 30 you mentioned. So how should the effect
RS Khadwalia
this? You know we. We have taken some action. I think Anshulji will explain. He is in charge of marketing. Anshulji explained how we are to going to increase. We are as per as the figure planning given by the marketing. We are expecting around same level of growth which we are in Crane. Although crane is a capacity constraint. But actor there is no capacity constraint. We are investing in the marketing. Anuji, you can little explain about 20. 25%. 20 to 25 to 30%. How we going to achieve?
Anshul Khadwalia
Right. So just to add on to what our CMD s are already briefed. Sir, currently we were only covering less than 10% of the Indian territory. With a very team size of 100 people. Sir, post the IPO we have. We. We aim to create a dealer development department and add 500 dealers in the next three years. So we’ve already started this process. We’ve been able to add 20 dealers in the first quarter of this financial year.
And sir, with the adding number of dealers we are hopeful that the kind of growth trajectory that we have given will be able to achieve that. We already have a product feasible for almost every part of the country. Also in addition to this we’ll be setting up an export dedicated export unit. And we’ll be focusing on export as well. We already have a product for 70 of the world’s tractor requirement. So sir, this is the way forward for tractors.
Unidentified Participant
I mean 30 utilization. So ideally 360 units. So we are targeting a 2025 CAGR tractor volume for next few years, Right? Would that be a correct understanding?
Anshul Khadwalia
Yes, sir. That’s a fair way to understand.
Unidentified Participant
And that is by. By two strategy. One would be covering more of Indian territory and second would be to go for export,
Anshul Khadwalia
right? Exactly, sir. And in the Indian territory at a macro level our aim is to expand network. Right. And in the micro level our Aim is to increase market share with the existing dealers.
Unidentified Participant
And just one last question from my side. In terms of pat margin I think last year our pat margin was close to 6%. Right. So how as you scale up, I mean even the crane side we expect a big boost and tractor also better utilization level. So ideally your fixed cost absorption should be much better. So how should one look at your PAT margin and 6% in two three years what sort of range we might aspire for?
RS Khadwalia
It is you know as our utilization increase. So we are expecting around 9 to 8 to 9% the next next in this next year
Unidentified Participant
8 to 9% PAT margin in which year we are talking about
RS Khadwalia
it is in the 2627
Unidentified Participant
FY. 27 FY 278 to 9% Pat Mark. Is that right?
RS Khadwalia
Yeah.
Unidentified Participant
Okay, fair enough. I think that’s very helpful sir. I would like to wish you all the very best. Yep, thank you so much.
operator
Take the next question from Vishal Vaya.
Unidentified Participant
Hello. Yeah, hello. Am I audible to you?
RS Khadwalia
Yeah, yeah. Audible.
Unidentified Participant
Yeah. Yeah. Hi. Good afternoon sir. Good evening sir. My first question for the how lousy is your current financing book and what are the NPAs or the credit risk control in the place?
RS Khadwalia
Okay. 131 is the AUM. Yeah. 31 March. Okay. Gross NPA is a 4.05% and net PA is 2.96.
Unidentified Participant
Okay. The second question what percentage of a sale is now financing through your NBFC arm?
RS Khadwalia
Around 25 to 30%.
Unidentified Participant
25 to 30%. Okay, my next question. Are you looking to expand the financing model to the external customer across the sale of the third party protocols?
RS Khadwalia
We have already started one thing first we want to focus on tractor business Basically because the financing retail financing is a very important factor to increase the sale of tectures. But now we started getting support from the a banker Also HDFC and Kotak have started financing our new directors. So now what we are doing in the new territory we are supporting our dealer because we are new states. We are where we are going opening the states there.
Ultimately initially we have to support our dealers for retail financing because once the number become more in those states then these bank private bank also starts supporting us. And another we are supporting our dealer by refinancing their refinance old tetras because in tractor business the dealer has to buy old tractor. It’s a exchange scheme. He has to bring because the farmer generally bring the old tractors and buy the new tractors. The old sector financing is also required because old technical customer is also asking the finance then we are supporting them so that their inventory rotation become little better and they are able to sell more numbers with that limited finance.
So we are now financing new tetro window farm and some. Some crane also somebody is demanding and giving us the right price and more is old tetra also because the rotation is very important for dealer.
Unidentified Participant
Okay, so what is your average loan tenure and the ticket size
RS Khadwalia
for new tetra it is around 4.5 lakh. Approximately 4.5 lakh. And old te I think it goes around 2.5 lakh. And the tenure? Tenure is four to five years. For new te old generally it is three years average.
Unidentified Participant
Okay, so can you tell about the collection efficiency trend over the last four quarters
RS Khadwalia
efficiency to generally 100% almost. But next month collection basically.
Unidentified Participant
Okay, thank you sir.
RS Khadwalia
Last year is 102%.
Unidentified Participant
102%. 1 2% collection efficiency.
Anshul Khadwalia
Yeah. Sometimes they take money in advance actually.
Unidentified Participant
Pardon?
Anshul Khadwalia
Hello. So sometimes the customers deposit money in advance making it across the number of hundred. Yeah,
RS Khadwalia
but you want to repeat and want to clear. Basically you want to sell that actor like those in some situation. Yeah.
Unidentified Participant
Okay. Yeah, fair enough. Thank you.
RS Khadwalia
Thank you.
Unidentified Participant
Thank you.
operator
We’ll take the next question from Bachra Janahar.
Unidentified Participant
Hello. Yeah, hello. I think I was muted. Can I repeat my question?
RS Khadwalia
Which one? Sir?
Unidentified Participant
Hello.
Unidentified Participant
Yeah. Am I audible now?
RS Khadwalia
Yeah, you’re audible. You can speak. Sir.
Unidentified Participant
Yeah. I just wanted to know about your tower crane manufacturing. Yeah. When it is likely to start and where are you planning to start? That is one question. And the second is about your crane expansion which you are doing by 3600. Is it on one shift basis or more shift basis.
RS Khadwalia
It is 10 hour shift basis only turnover.
Unidentified Participant
So if the. If the demand is more than if you run all the three shift the production capacity could be 7000 units by expansion alone. Correct?
RS Khadwalia
Yes, sir. Yes, sir.
Unidentified Participant
And about the tower can please
RS Khadwalia
our crane. You know, we are in the process of selecting the place where to start. Although new factory which we are making we can produce here also. Because this. This factory 30 acre area. This is okay. Yeah. And here we have already kept little provision in the set also which we are constructing now. But to see logistically if it is we can start and we can take decision to go in south also Maharashtra also.
Unidentified Participant
Okay. It is not yet decided.
RS Khadwalia
We are in process of finding place in that side. If you’ll get it is and it becomes the viability issue is not there what pricing we are getting then we’ll see to it basically. But in the meantime we’ll start making the fixtures and the design part. We. We have started in Buddhi only itself in our main plant. Because here every facility is available. And moreover in case we are putting a plant there also we will be utilizing our existing machine here. Because in that there we need some cutting machines. We need the vending machines. Those all machines available here. What we do few operation here. And then for just for welding. So that the transportation cost will come down accordingly. We’ll take a call. We are to finalize the location very soon. We’ll finalize it because the manpower is already on the board.
Unidentified Participant
When? When? When can we see your first screen will be assembled timeline.
RS Khadwalia
We are expecting my Germany by January. January. Yeah.
Unidentified Participant
Okay. Okay. That is great. Yes. Okay, sir. All the best. Thank you.
RS Khadwalia
Thank you, sir. Thank you.
operator
We’ll take the next question from Manansha.
Unidentified Participant
Audible, sir.
RS Khadwalia
Yeah, audible, sir.
RS Khadwalia
Hello. Please.
Unidentified Participant
Hello.
RS Khadwalia
Yes, sir. You can speak. You are audible.
Unidentified Participant
Yeah. Yeah. Hi sir. Thank you for the opportunity. Sir, can you give an idea about the market size of the pick and carry cranes? Like how many cranes get sold in a year?
RS Khadwalia
This is the last year around I think 14 to 15,000 numbers. Because there is no such data available published the figure sharing with the the companies manufacturer. This is to 15,000 numbers.
Unidentified Participant
Okay. So overall what we are expanding is almost 20% of the market. And I believe our competitor is also expanding. Right.
RS Khadwalia
But we know about the strength of our product and we are able to sell. We are able to utilize our existing 100 capacity only. We have taken this call.
Unidentified Participant
Right. And could you tell us what sort of differentiation is there in our product versus the competition or any sort of edge that we have in terms of pricing or in terms of capability?
RS Khadwalia
In. In terms of capability. When we started, we started our product with the better features available in the market. Okay. And we always focus on bigger size crane instead of the smaller size crane in the market. It was a 12 ton crane was very popular. But when we started with the 14 ton crane and bigger capacity, bigger height, we were aware.
I’m a technical technocrat. When we have to go in the market, we had to give something better. Right. We were the first companies to. To start the air brake system. Okay. So air braking was a very important feature to bring the. To make this machine as a safe crane. Okay. So these kind of good features we have given the market market accepted very well. And north we have got a very good market share. And then only we expanded. We are going for this capacity. Although. Yeah.
Unidentified Participant
Okay. So in this 14 ton crane, what sort of market Share would you be having?
RS Khadwalia
1410. Now we are almost 40% and then we went to 1610. 1610 was not very popular. We are going to gain 14 markets here. 40, 40, 40 with these two cranes. 30% for the bigger cranes.
RS Khadwalia
Okay, so now with this new plant, would we be focusing on the existing tonnage cranes only or we are looking to go into more higher ton cranes or any sort or what is the product portfolio where we are catering
RS Khadwalia
now? We are. We are making more this 14, 16 ton crane. But there we are going for more 2310 crane. 2010 crane. Also we are putting two lines. One is Hydra kind, the conventional machine which is made earlier. Another we call is the new generation machine which is having. Although all the models are safe cranes feature available in this pupil college. A safe crane. It’s a new generation crane. Where this outriggers is there we are providing even those cranes also outriggers. So no, no, no other company is providing. We wanting those kind of better features. But, but we, we are because of this here the capacity constraint, we were more focusing on the machines which we can make more quickly. Now here we are putting two separate line. We. We can make more. We are expecting to produce more bigger machines, more 30 tons, 20 tons. Those machines we are going to make more.
Unidentified Participant
Okay. And in terms of I believe over here, you know availability of spares and servicing of the cranes and ability to service and all is also an important factor because you know, it affects their rental on a daily basis. So. So what are we doing over here? Are we expanding our network and on and for these pairs and the servicing of these Ukraine
RS Khadwalia
we we. We have almost 25 dealer now across the country. And we are expanding this very fast. And we are making some service Spa dealer also separately and service mechanic. We are training them as a mechanic. We are certifying them certified mechanic from the company. These things we are taking and we are recruiting more manpower the service team in the field.
Unidentified Participant
Okay.
Anshul Khadwalia
Also just to add to what our chairman already said. So all the tractor dealers that we have on board, around 150 of them. And since the complete powertrain goes from the tractor. So until unless it is not a major structure issue, all our tractor dealers are also qualified to. To provide a service for cranes. And so is the complete service team of tractors.
Unidentified Participant
What horsepower tractors do we sell?
Anshul Khadwalia
So the. The current range, what we have is from 16 horsepower to 1 to 90 horsepower. 100 horsepower is completely under development. But our maximum selling horsepower is the 50 hp. 50 horsepower.
Unidentified Participant
Okay. But in terms of market I think the market is larger for 100 horsepower and above. Or it is larger for the smaller horsepower tractors.
Anshul Khadwalia
Sir. India. India. India. The maximum tractors that are sold here are up to 60 horsepower. Sir. Currently the market in India anything ranges between 30 to 50 is the biggest chunk. But because 35 is the entry level tractor. Similar to the strategy in crane, we aim to target the bigger customer. So we always try to focus on the bigger tractor. Bigger farmer who will buy a bigger tractor. So that was the idea of the company.
Unidentified Participant
And in terms of pricing for cranes as well as tractors would we be at par with the competition or would be cheaper or more expensive?
RS Khadwalia
First let me tell you about the crane. Then Anshulji will speak about the rector the crane. We are competitive. We are aware our market share is better at par to the competitors.
Unidentified Participant
Okay.
RS Khadwalia
Ultimately one competitor is selling at little higher price. Oldest company and comparable to the second competitor. We are selling in the similar price range. But because of the backward integration we can afford to give some more competitive price also in future.
Unidentified Participant
Understood. And these dealers that you mentioned on the crane side. These are exclusive dealers or they deal with other competitors also.
Anshul Khadwalia
We. We don’t have the policy to make the common dealers.
Unidentified Participant
Okay. Understood. And on the tractor side
RS Khadwalia
that also same. They are exclusive leaders. Okay.
Unidentified Participant
And pricing
RS Khadwalia
pricing on you
Anshul Khadwalia
the pricing. So more or less see because sector is a slightly. Slightly the competitive land speaks landscape more intense. We are competing with around 15 other tractor brands. So here we have to be roughly around 5% more cheaper than the market leader of that area.
Unidentified Participant
Okay. Understood. In terms of capex you mentioned 7080cr. CAPEX. We are doing. So how much is spent and what is the cap? Capex outlay for the current year.
RS Khadwalia
This. This is going. We are going to spend this whole amount by December January. Okay. It will be almost full expenditure will be done.
Unidentified Participant
Okay. Understood. Thank you. I’ll get back in the queue. Thank you.
Anshul Khadwalia
Thank you. Sir.
operator
We’ll take the next question from Chirag Basara foreign.
Unidentified Participant
Sir. Very good evening sir. Good evenings. My question is regarding. Last month we heard news regarding this technology transfers with one Chinese company. So how is term and condition regarding that we will pay royalty or we have paid only one time. One. One time payment?
RS Khadwalia
Sir, we are making one time payment only.
Unidentified Participant
Okay, sir. So if in next four or five years we’ll. We will try to manufacture that crane. Until that if any technology upgradation is there then we will not get it. Is it correct
RS Khadwalia
in our crane, you know we are already buying a bigger size of technology which Is going to be later on popular in our country. We are taking technology of the bigger size crane also. Oh. These cranes are, you know running since so many years. There is no big technology change because the safety is more important in the screen. And once that company from where we are acquiring the Technology is a 50 year old company that was a state owned company recently few years back it was privatized. So there is a. Is a proven company.
They have sold more than maybe 50,000 cranes. So that’s a proven product. Basically. Yeah. Safety is the only important factor which we are incorporating since beginning. Rather this our company have the capability to produce this kind of crane ourselves. We have produced one in past. But we have gone with this route basically so that we will not make any mistake and hidden trial. We are. That’s why we are acquiring the technology.
Unidentified Participant
Okay. Okay sir. So that company is already exporting that crane to in India or.
RS Khadwalia
Yes, they are exporting to India also. They are exporting to Europe also.
Unidentified Participant
Okay, so in India how much markets at the company
RS Khadwalia
in China there are hundreds of company maybe 50 plus now working. You know that we are not calculated basically in those figures we don’t have
But they are. They are. They are supplying. They are supplying the bigger size crane because in smaller there is a price competition. Generally 5 ton 16 is about demand. Okay. But they are supplying 10, 10, 20, 10, 25 ton. Those machines require less number. Okay. And they are selling the machine for installing it. Our crane or de installing. We need a crane. We call it a Harry crane. They are supplying those kind of crane also because those are wrote by the hiring companies. Hiring company for installation of crane. So those kind of business they are doing in India because that’s only premium. They are working only in the premium segment. Yeah.
Unidentified Participant
Okay sir. Okay. And another doubt I am having. Like I was reading your report. Your report before ipo. So so many case court cases against our company and promoter. I have not seen that much cases against any company like that before. Any comment on that?
RS Khadwalia
Against promoter. There is hardly no case. Company has done some cases basically. Okay, so this is in route basically initially some. I think some cases of recovery we have done. And because some cases are in NBFC company. So go some recovery cases has been done by the company.
Unidentified Participant
That is okay. But one case is by some casting company against in our company.
RS Khadwalia
I think I’ll tell you that is MSME case. One case. That is only one case. The company we brought goods worth more than 10 crore from a MSME company. There was a contract, clear contact whatever Was the payment due? We have made them. Okay. There was a clear contact if any manufacturing defect will come. Because we are giving warranty to a dealer to a customer of one year warranty. All our vendors supposed to stand by that warranty of one year. Okay.
And if that person speak that I will not accept the any rejection. If he was supplying the casting component. If a casting getting failed in the field we are supplying that time even the Karnataka also Andhra also. So we have sent the component. We have sent the customer also. So we brought a 10 crore rupees material. Only 8 lakh rupees. That is disputed amount. And you know this in MSME they have not applied the. The arbitration has not applied the reality of mine. How then 8 lakh rupees can become a such amount. But still we have challenge in the high court. And this is case is born in high court. This is a normal processor. We got not many cases. We got this one of the cases. Okay. Against for recovery. We are dealing with a 400 supplier. There is no issue.
Unidentified Participant
Okay sir. Very much clear sir. And one of the another thing I have read there that while preparing our land now for this new plant it’s soil filling and leveling cost is around 2.5 million. It’s 25 lakh per acre. Isn’t this too much high sir.
RS Khadwalia
Leveling charges,
Unidentified Participant
soil filling and leveling. Sir.
RS Khadwalia
You know one land which is we have taken level is little. Little lower side. Okay. Then maybe for feeling it is by our civil department. They have estimated that this kind of host is required. Oh. That is maybe we have considered it because hilly. It is a little hilly terrain. A machal is a hill. There is not a very plain land available anywhere.
Unidentified Participant
Okay sir. Okay. Like this type of contracts. How we awarded this contract? By tender or to single entity only? Single company only. Because I have seen all the contracts is given to one company only. That architect associate.
RS Khadwalia
That is the estimation we have taken. We. We will call the. We’ll call the parties. We’ll call the number of parties and then we’ll take this decision. Contact is awarded only on. Not exactly on the. The estimation that is estimated cost. We are taken from architect. What is the cost?
Unidentified Participant
Okay sir. Okay. Thank you. That’s all from my side. Thank you sir.
operator
Thank you sir. We will take the next question from Rohit. Nag it there’s an issue. I believe so we’ll jump on to the next question from Damodar Baliga.
Unidentified Participant
Can you hear me?
operator
Yes. Yes.
operator
Yeah sir. Good evening sir. Congratulations on getting successfully listed in the Market and also coming out with a very good result. Sir, I am very new to the company so little bit of small questions regarding your past I would be asking. So I was going through your timeline which is given in your investor presentation. So just first question that came to me was see we launched with tractors, you know sometime during 2000. Then I think then you’ve gone into the cranes and then even the green gen set it says Indo Power green sets. Now the first question is these are three different products Whereas the the production may be similar but the applications, the marketing, you know, use use people who are going to use these are all different. So my first question to you is what made you to get into these three different segments? Any particular reasons?
RS Khadwalia
Look, we have initially started the factory only. Okay? Okay. The transmission of the tractor can be used in the crane and the tractor can be used for genset application also okay? And said we have. You know in 20067 I think 6, 7 there is some demand from some export customer generators from us. The solicitor Peter is a UK based company they have inquired they started buying engine from us
Unidentified Participant
okay?
RS Khadwalia
And they told that can you make the complete canopy and all also okay. To make for them Never intended to make the generator and do the marketing because marketing is little difference different. Okay, okay. Engine we have to supply to them and engine is almost 70 value of the gen set.
Unidentified Participant
Okay?
RS Khadwalia
Okay. So that is one part Next is train in crane when this in 20078 to enhance the capacity utilization of our plant and looking that infra can be big boost in the country in future and our dependability instead of only on tactor item we have added as far as manufacturing cost is concerned because transmission and engine it is same huge in the crane.
Unidentified Participant
Okay?
RS Khadwalia
So our capacity utilization will increase Only we bring some little marketing people initially maybe some tractor dealer can support us. Okay? Thinking we had done it and that that that proven today that that was a very good decision because now we become a virtually becoming construction equipment company.
Unidentified Participant
Correct Sir, Are we still selling these gen sets as of now?
RS Khadwalia
No, no, no, no. We that that time you know
Unidentified Participant
only that exclusively we did that correct
RS Khadwalia
Company and customer that company become gone wrong Basically UKG and sometimes some engine some customer from Nepal dealer we are making because the engine was same
Unidentified Participant
so whenever there is any requirement then only you are making Other than that we are not making anything
RS Khadwalia
doing any marketing from our side.
Unidentified Participant
Okay sir in the timer also if you see right from 2000 we have launched various models of tractor till 23 or so various models. Whereas in the case of cranes. See, I think we launched the 16 FN series in 2011. And if I see the timeline then the subsequent models are launched only in 23 only. Okay. So my question is. In spite of having few what do you say variants or capacity cranes based on whatever we are seeing, we are doing extremely well in the cranes. But not so good in tractors. So if you can share some thoughts on that. S ir,
RS Khadwalia
as far as crane concerned, the launching of the model. You know initially we started with a 14 ton crane. Then 16 ton we added and some more train we added. But we were in. We were operating this from this company. This tax exempted zone.
Unidentified Participant
Okay.
RS Khadwalia
2008 to 2017 we are at disadvantage comparable to competition. What disadvantage, sir? Because we are not able to pass on the model benefit to our customers. Oh, okay. Okay. All big customer. They used to have this wet benefit. Correct? They used to take. Correct. This was a negative point for our this business.
But in the meantime we develop our business. We make this is a perfect business. Okay. Then after 2017. 2017 the GST region came. I’ll become at par. Okay. 17. My younger son after studying from UK he’s not on the call taken the charge. And that time it is 30 crore business. And the last year we done almost 200. 225 crore rupees business. So in this crane business we have enough grown growth. But in spite of our limited capacity because we put this initially put this plant. We got here around 30 acre land in this plant.
Factory. 5 acre additional factory where we have got the foundry division. Okay. Okay. Acre almost 4 acre is given to the crane plant which was not utilized. Okay. A little congested facility. Still in this congested facility we are able to sell these numbers. Okay. Because of the better product and you know, pricing. Okay. Okay. Fair enough. Sir. Sir, my third question is the new plant for the tower cranes. Is it next to the existing plant of this 30 acre area or is it at a different place? It is around 2 km from this place.
Unidentified Participant
2 km. Okay, now to foundry. 34 acre existing land.
RS Khadwalia
Around 4 to 5 acre foundry. Okay. Around 30 acre local 25ch or maybe 4 acre again crane 44 around 4 acre approximately.
Unidentified Speaker
Yes. Yes. Yes. 3600 number correct. Existing 1600. Okay. Sorry. Not thousand two eighty. Yes. Almost existing products. Pick and carry crane 600 capacity tower can be Vanega 3600 May 600 pick and carry tower B 3000 technology. Chinese companies sensitive or you know safety approval. It can carry cranes May Harik model approval in a government agency certification Certification NEA that if we.
RS Khadwalia
We. We can’t permit to have any miss happening at anywhere.
Unidentified Participant
Correct. That’s why I’m asking you Sir. Very confidently. Fourth quarter May. Caribbean 45 to 60 crores sales 4560 crick 600 number. Yes. Yes. Yes. Yes. FY27. 50% capacity utilization.
RS Khadwalia
Because it is new product development in this line. That’s all that we. We have informed you. 24 to 25 lakhs based on market survey. FY27 number 27 marketing. But the team is at place. Last question. Net Profit margin existing FY26 may score 8 to 9%. Correct. 26. 27. FY27 depreciation or interest. Anything you are trying to do differently.So that you are saying in FY 2727 26.
RS Khadwalia
2726 27. Financial
Unidentified Participant
year sir. A pick and carry cranes. What is the present cost?
RS Khadwalia
Now the realization is around 20 plus 21 lakh. But because we are shifting to the new plant we are going to make a little bigger size of crane also more fix the Tingy 28. Around 25 lakh rupees. Almost same tower cane is around 65 to 70 lakh. 64. 25 lakhs.
Unidentified Participant
3,600 into turnover.
RS Khadwalia
Because it’s a new product. Basically we are not captured in the figure. Now basically this year we are kept for trial. Okay. And product
Unidentified Participant
30% growth. Both only for pick and carry. Cranes plus tractors plus. Yeah. Correct sir. Marketing or geography expansion. I know. Tractor market to coffee. Competitive product. Any particular reason,
Anshul Khadwalia
sir? So maybe I’ll take this. Sir. It’s a very heavily finance driven business. And when I. When I talk about finance it is the finance to the end customer. True. So currently apart from. You know, apart from two, three players who enjoy the maximum market share. The other companies either they had their own captive finance company or we did not have the right product. Sir, to give you a clear simple example. If. If assuming the asset is 5 lakh rupees.
You can go with 50.000rupees margin money. And the 4.5 lakh rupees can be financed. That is the offering the competitors had. Visibis for indoor farm. You would require at least 1.25 to 1.5 lakh rupees. So that was the reason that we were only able to hold our dealers and not focus on building. But with the help of our own captive finance company our effective market share increased in certain areas where we work. And looking at that work, HDFC and Kotak have joined hands with Us very recently and now with their support, we are confident that we’ll be able to improve our sales.
Unidentified Participant
Sir. So geography, the number of dealers. Yes, sir. Plus margin money. 1.22, 1.25
Anshul Khadwalia
at least above 70 range. But yes, situation better.
Unidentified Participant
So with that do you feel we will be able to increase the. The sales of tractors?
Anshul Khadwalia
Yes, sir. Sir, of course it will be. It will be. It will be a slow ride. But shortly we. Hello. Right. Yes, sir. Three years down the line, sir. Currently we’ll be doing anything around 34, 3600 units. And this year we’re looking at a 30 increase in our numbers. Okay. And we’ll be able to maintain it 25 years. The 25 the year after and 20% the year after.
Unidentified Participant
Thank you very much and I wish you all the best.
Anshul Khadwalia
Yeah. Thank you.
operator
The next question from Sandeep Kumar Patwa.
RS Khadwalia
Hello. Hello. Yes. Yes.
Unidentified Participant
I’m audible.Yeah. Yeah. So sir, thanks for the opportunity. I wanted to ask like in the crane segments like what product is the highest selling? Like which done. You are currently highest selling in the market.
RS Khadwalia
I think currently is a 14 ton. Number two is a 16 ton.
Unidentified Participant
Okay. Okay. And like if we say in the Indian market like what is the highest selling cranes in. In the Indian market? This only 14 and 16 ton.
RS Khadwalia
12. 10 also. And 14 also these are more highest selling model.
Unidentified Participant
Okay. Okay. And like the like what we are currently expanding the new facility. So so in that also we will manufacture this turn strain more or like we are shifting to another higher tons. Like the like share of distance train or cranes will be more in the. In the coming.
RS Khadwalia
We will not focus. Okay. If any government order is coming still we will. We’ll offer them product is with us available. But here we’re not making these smaller cranes because of the capacity constraints when we were the.
So it was our part of our strategy to produce bigger size grain more. Okay. Maybe some number we can sell if the capacity is available.
Unidentified Participant
Yeah. Okay. Okay. So. So like. Like going forward like are you seeing like a demand for more higher, higher tons of grain improving? So that is how you are. You will be producing that more higher number of tons train in the coming facility.
RS Khadwalia
Yes. Is it increasing higher turn capacity? Crane demand is. Yes.
Unidentified Participant
Okay. Okay. And also sir, like. Like currently the solar energy and wind energy this renewal sector is very much in demand. So there also like cranes are used. So I mean are. Are you also catering to this sector? I mean planning to cater to this sector.
RS Khadwalia
We. We are already supplying one of our customer has brought machine 21 machine recently and they are working in Jamnagar their solar power and our machines are working in a Danny project also. So supplying directly to them. Basically they are taking through hiring companies and we are supplying.
Unidentified Participant
So you are supplying directly to the customer not through hiring companies.
RS Khadwalia
We are supplying hiring company because these adani, this big player, they are generally machine from these. These kind of smaller machine. It is basically small machine for them. And because they don’t take, they take the machine from the hiring companies and hiring company buying from us.
Unidentified Participant
Okay. So like so like just coming to that this model of like hiring companies who buy from you. So I mean generally the cranes revenue in the balance sheet, whatever. So generally of like how much percentage of revenue is to the direct customers and how much is to the hiring companies.
RS Khadwalia
No, no. You know as a generalized. Yeah. Hiring hiring company say maybe 60%, 70% but hiring company start machines 5 machine a 10 machine. It’s a very. Okay, okay, okay. 15% corporate government like defense.
Unidentified Participant
And so regarding the like this tower crane which you are talking you have taken this like this technology from the Chinese company. So in this like, like, like any capex you are envisaging like the IPO proceeds you have taken for the new coming that pick and carry cranes for this tower cranes like any capex you will require like to incur and how you will fund this like any unspecific amount
RS Khadwalia
we we will do from our internal this sources. Okay. More machinery capex is not required. Of course some line and building we have to require other place and some major component, major processing we can do it from our existing factory because the machines are common machines, cutting machines, vending machines which we are already insane. Yeah.
Unidentified Participant
Okay, okay, okay, okay. And like just wanted to know like do you have, do you also have some like order book for cranes or like tractors or like in this like like something number you already have or just you get this order. Like how is this like done in this, in this sector?
Anshul Khadwalia
Anshul. Hello. Yes, it is a running cycle. Of course we take a forecast from a sales team but usually it is. It is more or less on a rolling plan and a running cycle itself. Okay. And for cranes. Yeah. Otherwise we keep a track of all the big projects coming in the crane and we go and try to pitch our products. So sir, it is more likely creating our own order book and then depending on the customers in the market.
Unidentified Participant
Okay, okay. And just wanted to ask you like overall your market share in the cranes market in India like how you’re ranking like in the top three top five players. Like what is the market share overall in the crane segment?
RS Khadwalia
We are in top three basically third number player.
Unidentified Participant
Okay. Okay.
Anshul Khadwalia
Just to add on to what CMD sir has mentioned. So there is no authentic published data for cranes. But to our assumption any around 14000 cranes in the pick and carry segment was sold last year out of we did something around 1081 numbers. So 1280. Right. And sir, if you see there are two ways to look at our market share. If we see our effective market share where we are present in the market, we are only covering about 25 of the Indian territory. 75 is still vacant for us. In that 25% we command anything ranging between 25 to 50% in the Queen. Okay. Okay. So currently you are having facility in Himachal Pradesh only now like no, not anywhere else which is 40 km from Chandigarh.
Unidentified Participant
Okay. Okay. And regarding this tractor business. So now since this year monsoon is very like. Like. Like very like. It is early monsoon. And like, like. Like hearing from the competitors also like practical demand is good. Like since the crops are being like growing healthy. So just wanted to know like are you like expecting like more pickup in the tractor business this year? Like as compared to other years timely monsoon effect will be there.
RS Khadwalia
We are expecting positive numbers. That’s why we have given the this number of forecast of around 30% growth in this year.
Unidentified Participant
Okay. Okay. Okay. Thank you so much. Thank you so much for your time.
operator
We will take one last question from Pratik Ch.
Unidentified Participant
Am I audible, sir? Yeah. Sir, for this the proportion of sales, you know, as we have now tied up with other banks and NBFCs. So do you expect in FY26 and FY27 also that our tractor sales would be 25 to 30% from our own NBFC or do you expect it to reduce, you know, significantly.
Anshul Khadwalia
No, sir, it will be in the same line. Because we’ll be opening some newer territories. And there we’ll be seeking support of our captive finance company. So sir, we feel that this ratio will somewhere be anything in the range of 25 to 35%. Okay. And sir, in FY25 why did our tractor sales fall?
RS Khadwalia
Okay. There there were some. Last year there was some government order from the south. Basically south state. We have taken the one is that number and another because we were mainly on north base where we are operating there the market was not very good because of very high summers. And the election time because the beat is the major crop there. That time the election time was there. The parliament Election. So this is a little bit sale affected in our that particular area. So that was the region. And this, this south order, this you were saying was in FY24 Fi24. How much was the roughly the amount of that single order? That exactly. I think around 500 numbers. Yes, around 500 factors. It is given to the hiring companies through government. The government.
Unidentified Participant
Okay. And so for this the pick and carry segment can we achieve a similar 30 growth in FY26 also?
RS Khadwalia
Padarn,
Unidentified Participant
I am saying in in pick and carry segment can we achieve a 30 growth in FY26 also?
RS Khadwalia
Yes, yes. We are expecting around 30%
Unidentified Participant
because I mean so. So you’re saying that you can maybe this year you can operate at more than 100 utilization also
RS Khadwalia
100. Basically we are trying to reduce the bottleneck and by using some area of the tractor division we are trying to have this efficiency from this plant.
Unidentified Participant
Okay. Okay. And sir, for tower crane, could you give us an idea what could be the current market size in terms of value and who are the major players here in this segment
RS Khadwalia
Last year is I think around 1,500 approximately. Crane There are three major company. One is the potain is the big player. Another is the Joom line and one more XM Construction. Three, three big player are there now. And you said 1500 crore or 1500 as the number of cranes. 300 cranes only.
Unidentified Participant
Okay. Okay, great. Sir, thank. Thanks a lot. I’ll. Thanks a lot and all the best.
RS Khadwalia
Thank you. Thank you.
operator
Thank you. Due to time constraints we’ll have to end the Q A session. So I would like to invite the management to share their closing remarks.
RS Khadwalia
Anshul.
Anshul Khadwalia
Yes sir. You can go ahead. So we would just like to thank everyone Fin portal for arranging this call and all our investors stakeholders who were a part of this. Thank you very much. It was a great session. A lot of us to look back upon as well and thank you. We look forward to many more in the future.
operator
On behalf of Window Farm equipment we sincerely thank you for your time and continue interest. We appreciate your participation on today’s call. You may now disconnect. Have a great day ahead. Thank you. Thank you so much.
RS Khadwalia
Thank you. Thank you very much. Thank you. Thank you.