Jash Engineering Limited (NSE: JASH) Q3 2025 Earnings Call dated Feb. 13, 2025
Corporate Participants:
Bhuvanesh Pandey — Chief Operating Officer
Unidentified Speaker
Analysts:
Unidentified Participant
Presentation:
Unidentified Participant
We’re Sidish from Anstan Jum and I would like to welcome you to the Jash Engineering Q3 FY ’25 earnings conference Call. Before we begin, I would like to inform you that our Chairman and Managing Director, Mr Pratik Patel will not be joining today — today’s earnings call due to unavoidable commitments. However, we have with us Mr Pande, Chief Operating Officer; and Mr Dharmendra Jain, Chief Financial Officer, who will take us through the results and address your questions.
I would like to indicate that all participant lines will be in listen-only mode and there will be an opportunity to ask question after the opening remarks conclude. To ask the question, please select the raise and option under the reaction tab of the Zoom application. We will call-out your name and request you to unmute yourself. Kindly begin your question by stating your name and organization. Additionally, please note that this conference is being recorded. The recording will be available on the company’s website within a day and the transcript will be shared subsequently.
Before we proceed, I want to remind everyone about the safe Harbor to today’s call. Some of the comments made under during — during this discussion may contain forward-looking statements that involve known or unknown risks, uncertainties and other factors. This should be viewed in conjunction with our business risks, which may cause — which may cause actual results, performance or achievements to differ significantly from what it is expressed or implied. If you require any further information or clarification after this call, please feel free-to reach-out to me. With that said, let me now hand over the call to Mr Pande. Over to you, sir.
Bhuvanesh Pandey — Chief Operating Officer
Hi, good evening to all of you. So we will start with the presentation I think this is a known slide for majority of you people that we have six manufacturing units, more than 1,000 employees, we did a consolidated revenue of INR5,02 to INR522 crores and all these things are already known to you. Let’s go this is the evolution map of the company known probably to majority of you all people same thing I think you all of you know that the recent acquisition was waterfront that we acquired last year and we are trying to bring it up this shows the facility status the current facility status of what Josh and the group company have
The sheet shows the presentation slides shows the various product that we have in the company through different, different functionaries have all those things so intake systems, fabricated gates, screening equipments move forward. Vials for different purposes, even special-purpose valves, valves about solid handling valves various process equipments hydro equipment row filtering equipment so these are these contains the entire band of product that judge and the subsidiary companies are manufacturing. The product range continues.
The slide shows the application of products where we are utilizing this product group and it’s like the intake systems, storm water, wastewater, irrigation, steel, paper and pulp and so covering majority of areas that are used for water and related industries. Yeah, these are the product offerings with the kind of percentages we have. So our major, major chunk of product is related to water control gates and this includes the gates, stop locks and all ancillary equipments, which is included in the gate section.
Then the next is screening equipment, screen and the complete screening range of equipments, which is around 20%, then we have valves. And then the remaining set of equipments are considered as 9% of the overall revenue-share. So when we consider the overall world market, how we are placed up, so this is one of the efficacy of what we do the businesses we are spread across the globe doing business in majority of the bigger — bigger countries.
This shows the spread of the revenue what we do. Major clients, these are all domestic clients and then we also do international business, so showing the entire set of international. And these are all — so we have Even more, but these show only the major clients that we have. Yeah. Good afternoon. This nine months, our turnover revenue increased by 44% as compared to last year. Standalone, just engineering, this is our standalone performance. Grow drastically at 2,201%. It tripled the turnover what is compared to last year and 35% growth in turnover of just say. Same way, profit-after-tax also increased in just Engineering 13% to 16%, 3% — 15% and Just USA is around same 3% of the profit-after-tax. This is consolidated revenue, overall performance, 46% increase in the turnover of nine months. Same way gross margin is around same, 6160%. EBITDA margins is also same 17%. Profit before-tax slightly increased from 11% to 13% and profit-after-tax also increased from 9% to 12%. This is quarter-wise performance this margin is very good in this quarter, particularly in Q3. This is the outlook for this 25%? Yes, this is the pending order position on 1st of February approached INR933 crores. This is the negotiation pipeline undernegotiated and negotiated approx INR26 and INR25 crores. This is outlook for ’24-’25 as we have given earlier. We have a target of this year INR675 crore as a consolidated turnover which is we are in a we are good chances to achieve this year because of looking to the Nine-Month output this is our currently on the increase and 83% in margin and we are achieving my machine we are going to and this year we will do 4 to 5 crore this year consolidated order book already and we expect that our carry-forward order booking for this year is at more than INR25 crores. Our channel Chennai plant is going to inaugurate in May 45 and in December ’25 and we expect USA office in 26 office building, February 26 and exchange in January 26 plant extension thank you.
Operator
Thank you, sir. We will now begin the question-and-answer session. A gentle reminder to all the participants to ask questions, please select the raise and option under the reaction tab of the zoom application. Let’s take a first question from Mr Shahu, please unmute yourself and go-ahead.
Questions and Answers:
Unidentified Participant
Am I audible?
Operator
The voice is little low.
Unidentified Participant
Yeah. Can you hear me now?
Operator
Yeah.
Unidentified Participant
Yeah. So two questions. First question is regarding the comment by on machine. It says you are reviving it. So what exactly reviving means? Are you going to open a machine — manufacturing facility in Austria or you’re restaffing the team in Austria or you’re going to relaunch it in the US? What does — can you just elaborate on the — on that statement.
Bhuvanesh Pandey
Actually, we are going to start the turnover in the MARD machine Bow. We are taking the order which earlier taking in the Just Engineering Limited in machine Bow. And we are in currently it is no turnover and it’s like a no transaction company presently. So we are going to revive because in UK and everywhere, the installations are there. So we create again the track-record for the machine now and we supposed to take-out of India order in itself to maintain that only company.
Unidentified Participant
Yeah. But if I understand correctly, you don’t have anybody in Austria, right? It’s just a just
Bhuvanesh Pandey
So Mr Maharab the Maher, the managing earlier Managing Director of the Mahara Machine Bao is also agreed to look after these things and we manufacture in here India, yeah, UK, our waterfront.
Unidentified Participant
Okay.
Unidentified Speaker
See, Mr Sao, I would like to answer your questions in a different way. As my colleague explained, we — you have seen we have acquired waterfront in UK, glass, right. So we are definitely trying — currently they are doing the gates business and we are trying to revive up with a startup with a screening business there. So Josh or the ancillary Group of Josh, any subsidiary are doing screens business in the name of Machine and, right? So as you are already aware. So Machine and Bao basically is based out of Austria and Mr Garnard Maher is still the MDO of Machine and.
So recently, we already had a discussion and Garnard was with us in Glasgow to discuss with Scottish Water and other people to land up in some framework agreements. And I would like to share an official information that we are — we have started an agreement, which is still to be legalized, but we have already framed up a document with who are one of the biggest contractor in UK, overall UK and they are also — they are owned — they have owned Engineering services.
In UK have already died up and that was the opportunity that Josh acquired Waterfront just to take-up that opportunity to grow up, right? So Machine and, we are looking up an opportunity. We have already started giving quotations against the screens to be quoted in Glasgow, UK and of course, in US, US also, we have supplied screens two years back. And so as we are selling in Machine and name, so this will be the way and will get revived in totality. So of course, there will be no manufacturing facility in Austria. We are not thinking of that, but yes, will operate from Austria only and the orders will go through.
Unidentified Participant
Sure. So if I understand correctly, you are going to rebrand the — you are going to deal on the marketing part of selling into UK and Europe. That’s what you’re trying to do, right?
Unidentified Speaker
We are already doing. The only changes with the acquisition of Waterfront. So Waterfront was up to now not doing any screening business. They were doing HDP as we have acquired Waterfront. So we have started selling up bigger pen stocks, bigger other products. We also sold one nightgate valve there. So this is just the beginning. I would say just to foray into the market as screen is one of the biggest business and we just have hubre as competitor.
Huber is the only company there in UK who are doing screens as a business in a very, very mass level. So to enter into framework agreements and other things, yes, Mar is one of the biggest marketing brand which we will introduce in UK and so do in US.
Unidentified Participant
Sure. Sure. My second question is the impact of this tariff on metals, the 25% tariff across board. And I’m just trying to understand the business model currently we have the US and how is this going to be impacting our costing from what I understand that both Sipad and Jash India ships out to Rodney and of certain products, which are basically long gestation period are done locally and short gestation is what you ship out from India. So two sub-questions. One is, how much currently the standalone business and Sripad does with Rodney and assuming that we do $35 million this year, what is the India component? And the second question is, you know, is this going to impact our profitability in our future this thing what is this mitigation that we are trying to do?
Unidentified Speaker
Okay. So this is actually, I would say this is a cloud which is roaming around with the drum coming into the government, taking up the complete scenario. But to clear everything,
Unidentified Speaker
, I would say we don’t have any impact with the Trumpian — this tariff system, number-one. Number two, to clarify one of your question, we don’t export anything from Shepher to Rodney Hunt. We are only doing gates and certain part of screens that we sell it to Rodney Hunt. We stock nightgate that we have been sending from here, which is like once in a year or once in two years and we keep stock there.
So as far as Rodney Hunt is concerned, we only manufacture gates in India and sell. There is nothing involvement there. Now to answer to your second question, how it will be affecting in totality. So as you have seen the facility, I would like to brief you that we have around 70,000 square feet of manufacturing facility under the shed, which we are operating currently in Orange, which is based out of Massachusetts, right? And then in another few months, we are also planning to expand another 45,000 square feet to make sure that we cater to majority of requirements to be to be done from US in case there is any effect or impact that we foresee, right? If you see BABA Act, the Build America, Buy America, which is coming out of US, till 2029, that’s what we see and it has been
In the previous around, if you see they have — they have a law that by 2029, we have to manufacture more than 95%. I mean procurement of raw-material to manufacturing to be done 95% in US. So we are already geared up in advance to that. We are already doing manufacturing and Massachusetts in orange. As already explained there, we are also planning an expansion in orange, which will easily cater to around 25 million to be produced from Orange.
Apart from that, in Houston, we are already building an office, which was shown in the presentation and another 45,000 square feet of land is already into — already procured and then already we are planning to do it in 2027 wherein we’ll be building another manufacturing setup in Houston. So currently to deal with 35 million, I don’t think there is any problem and I’m talking about only US manufacturing products.
Unidentified Participant
So I — yeah,
Bhuvanesh Pandey
I’m just going to last question is that profitability. No, I think sir, explained. Yeah.
Unidentified Participant
So I just want to go back and say, say, out-of-the $33 million we’ll do this year, because obviously from the current quarter numbers, the profitability of US business is far higher than the standalone business in this quarter. I’m just trying to figure out whether this $33 million, how much will come from India? Is there any component you?
Unidentified Speaker
Yeah. We have a very clear component. As of now, we are trying to do around $15 million from US and the balance is from India. But just to explain exactly how the component is. So when you talk about an orange component or the US component of 15 million, the 15 million is bifurcated as you talk about actuations, hydraulics and other things are around 3 million, wherein there is no manufacturing component involved from US, then there is an aftermarket business, which is around 3 million, wherein you don’t majorly involve any manufacturing capacity, right? So it’s like around INR6 million, 6.5 million gone. So out of 15 million, you are currently doing something between 9 million to 10 million from Orange.
And with the expansion of facility, you always have the bandwidth to do around 30 million 35 million. So you can do another 25 million, which is a very big business. You are not thinking of doing it in next two years, three years. In order to reach the target that we have anticipated moving around next year, we are targeting something like 40 million to 45 million being done from US facility. So unless and until you reach anything more than in excess of 60 million 65 million, we don’t think there is any need of further expansion into that.
And with the Houston facility coming up, that will easily add to another 10 million from there, which we are planning in ’27, ’28. So you can easily understand from that entire setup of strategic planning that by ’29, we will be easily able to do something like EUR50 million to 60 million easily from US. So you don’t need any further expansions.
Unidentified Participant
Okay, sure.
Operator
I would like to request your question back to. Yeah. Thank you. I would like — our next question is from Mr Naveen. Please unmute yourself and go-ahead.
Unidentified Participant
Thank you for the opportunity. In the last con-call, we were guiding for a closing order book of close to INR850 crores to INR1,000 odd crores and in the this results presentation, we have guided for around INR825 odd crores. Are we seeing any change in the business environment for us to sort of reduce this guidance?
Unidentified Speaker
There is no change in the business environment. As you see the theoretical message shows in excess of INR825 crores. So that doesn’t mean that it is restricting us to INR825 crores. This is always a projection. So projection can go up to INR900 crore. It’s a very fragile kind of world when you talk about marketing and then we have around one and a half months left. So our order book position is extremely good.
And we — as you saw, it’s more than 900 plus. We are going to execute further 200 sales. So it’s very clear that we are going to be more than hit 830. But when you think about whether we will be 830, whether it will be 930, 950, it will be just a matter of 1.5 months and we will be very clear. But there is no change in the business scenario or there is no change in the order book position. It’s going we have a very good order book.
Unidentified Participant
And we were expecting few large orders. Any update on the same?
Unidentified Speaker
Large orders means we have got a good order from Malaysia, which is like INR7 crores, orders expected to come. We have already negotiated and everything is done. So Singapore, Pratik sir is already going. So he has already negotiated a big order. So it’s just in the pipeline to finalize and strike the deal. So that’s already in the pipeline. We — in our kind of business, we are not losing such orders, which are already — it’s a matter of the policies and the thinking of the document. That’s it.
Unidentified Participant
And my second question is how is the integration with the waterfront going and what is the outlook for the next financial year?
Unidentified Speaker
So waterfront business has started good, I would say, though we cannot expect profitability right from the first month or first year, but then the business is going good. We already acquired, as you have seen and we already acquired another shed to start the manufacturing facility. Now this year, we have sent CNC machines, testing facilities and all those things from India and now the setup is complete. So up to now what was happening is we were sending gates and the other equipments that two small ones from India and Waterfront model was manufacturing SDP pen stocks there and selling.
Waterfront was previously known only for SDP pen stocks and just selling up as a. Now after we acquired that, the business is growing up. As you saw, we acquired at 2 million and currently we have already done INR2 million in the sales and we are projecting anything about 3.23 million to 3.2 million. In sales, the open order book, we are expecting anything between 3 million and 4 million. The band I’m saying very-high is we are already see there is a thing called AM, AMP Asset Management period and waterfront or let’s say the entire UK is going up with amp now.
So this amp period is something wherein the entire UK slows down in the business because there is a complete approval of the asset management and the funds and everything from the government side towards the water business. So as far as water business grows and Waterfront, we see a very clear vision how it has to grow. Has already framed up a vision reaching 10 million in next four years and we are up to that. If we are having an order book of around 3.5 million to-4 million this year, we have — we are very clear next year our target should be crossing INR4 million in sales and so is the next years.
Another thing just to give you an idea like the UK business goes on frameworks. So waterfront was only on Scottish Water framework. Framework is very difficult to get as far as the new entry of business is concerned. So Waterfront was an extension framework with Scottish Water. But in last few months, we are into 7 trend, which is the second-biggest framework authority business into UK and we have now been just as recent as three weeks, we have been now accepted as the supplier chain partner in United utilities, which is the fifth biggest in UK. So as far as we are going up, we see a big development in the business. So we are very clear on the vision of achieving INR10 million in four years as the revenue for Waterfront and we see a very clear picture for Waterfront as a growth.
Unidentified Participant
Thank you. I’ll get back-in the queue. Yeah.
Operator
Thank you. We will take our next question from Mr Nitin Dharmawat. Please unmute yourself and go-ahead.
Unidentified Participant
For the opportunity. Am I audible?
Unidentified Speaker
Yeah. Am I audible?
Unidentified Participant
Yeah. So my first question is, what is the capacity utilization that we are running currently? Okay. So you are talking about the entire consolidated. So capacity utilization, we are at around 60%, I would say. But at the same time, you will see we are expanding the facilities. So just to give you an idea, we are already
Unidentified Speaker
Setting up a new plant in, which my colleague explained, we are going to inaugurate in this main currently in next coming two to three months. We are also — we have also started the infrastructural development and expansion of the ACZ plant, which we have in Indor. So Indore we have four units and we are expanding another export unit as because the export business is growing up. So that is coming up, that will be done by end of this year. We are expanding our orange facility, which is based out of Massachusetts, seeing, as I explained just now with the Baba class coming up and expanding US business, we are expanding that facility. We are also coming up with a Houston plant, which is — which is again a big investment. So we are very clear that the investments will also help up ramping-up the potential of capacity. So we don’t have — we don’t see any capacity constraint. If you have to go up in the business, we are already investing into that to expand the capacities.
Unidentified Participant
So if we are expanding in US also for the manufacturing, will there be any impact on our margins because the US manufacturing will be at a higher-cost now, if my understanding is correct. May you like to explain that?
Unidentified Speaker
Yeah. I can explain that. See, initially our operational overheads were very-high in US. We are not increasing extremely high the manpower. Our current manpower in US is 60, which has just increased by another five in last three, four months. So we are not tremendously going to increase the manpower by another, 20 30 or 50 people, right. So we don’t see a major increase in that. The operational expenses are not going to increase because whatever there are already stabilized. So with the increase in the revenue, that will definitely only help us reducing the operational expenses.
Bhuvanesh Pandey
The thing in further I want to add this that if we book any order, which is local manufacturing in USA. So everyone who are supplying from USA which is at par with us. So they also estimate the cost as per their actual cost there in USA. So margin also on the basis of that also. So in Baba and everything, whatever project comes for the US manufacturing, we will get extra price for that also. It’s very clear in it.
Unidentified Participant
Got it. So margins will be maintain even if we are manufacturing okay. My next question is, what is the revenue guidance that we have for the next financial year and the EBITDA guidance for next financial year or what is the target that we are keeping internally for these two?
Bhuvanesh Pandey
Yeah. We are targeting into — in next two years, we are getting approach — approach INR1,000 crores is our target within next two years. And our EBITDA margin is, we have clearly told that it will be between 12 to 14, which is we have not take estimation, we have not take care of the rupee depreciation. And nowadays, the rupee depreciation effect is also very good. And if it continues, then it definitely increase our profit-after-tax margin also.
Unidentified Participant
Okay. Are we planning any more? Just sorry, sorry, go-ahead.
Operator
Thank you. We will take the next question from Dixan Wilchandani. Please go-ahead.
Unidentified Participant
Congratulations management on the good numbers. So firstly, we are looking at an order book of INR933 odd crores as for the last update. I want to know that what is the key growth driver for us going-forward? Because as I understand around 40% of our book is US and 35% is India, around, 23% 24% might be the rest of the world and 2% is around UK waterfront. So what’s the growth driver for us right now?
Unidentified Speaker
See, growth driver is not related to geography, not completely related to geographies. So first of all, let me explain there are four basic growth drivers for our business. Number-one is reuse of water, right? So you see there is a very, very strong stress across the globe on reuse of water. Singapore is the biggest example who are building up $4 billion of investment into reuse of water infrastructure. So we are supplying gates, greens and everything because the waters, the pure water, the portable water is really not available to them. So — and this is not only Singapore, this is across the globe which is happening that there is a strong emphasis on reuse of water.
Second is desalination. So you see coastal countries, islands and all those where there is a low rainfall, they are continuously moving towards desalination. Even in India, it’s not only outside India. India also Chennai, Surat and all such states are moving towards desalination, which is an extremely, extremely high business. The world’s 30% of desalination business is in Saudi Arabia. So we are already participating on 26th and 27th in Mena desalination exhibition. So we have already started penetrating into Middle-East markets. So you have seen that our Middle-East capture was quite less.
So with the desalination project going up and we are one of the leaders into desalination equipment supply. So that will become one of the biggest focus and one of the biggest future growth potential for us. If we see third, flooding you would have seen in the news, not only Chennai, Dubai and many other places where flooding has become a big, big criteria for getting into system. So storm water — stormwater pumping stations, storm water flooding has become such a big potential that this will bring at least 15% 20% rise in the business and the overall potential of the business. Stormwater is such a big thing.
And the final thing is rising sea level, which is now I mean as to the complete globe everywhere you have seen Jagata rising around 400 to 500 within next two years. Singapore has been forecasted as rising up to-1 meter by ’27-’28. They are already working on that. So rising levels are a major problem, including India, you have seen. So these are the four major business growth potential, which I see and which everyone knows, which will be a key to success of growth for and the complete subsidiaries.
When you talk about the country-wise location, US has an enormous business potential. Waterfront, we have just entered. If you see UK, the overall growth potential for next five years, they have declared as INR170 billion. This is the kind of investment that we are going to do in water business. So even if we get 1% of that business, that will be big enough amount for us. CNS, Middle-East business, as I told you, we are continuously trying to move. Pratik sir is already moving around there continuously, still will be next week-in Middle-East. So that is the kind of business opportunity that we are looking for. So there is no of business that we look in.
Unidentified Participant
So I understand as a product, we are looking at various products with desalination as a key product. Yeah. But like where-is our efforts more focused on as a market? I understand you mentioned Singapore and Middle-East, but if you could just give us a couple of geographically, what we are also looking at plus our product efficiency. If you could give us one more step of clarity there.
Unidentified Speaker
Sure. So you know, we are globally the biggest suppliers of water control rates, right? As the product range, one of the biggest thing is we offer a very big product range that nobody in the globe can offer as a combined together, which just offers under the umbrella. So let’s talk about you want geographically, so let’s start with US. This year we are targeting anything more — anything more than $33 million as a revenue, right. US has a big potential in next four to five years, we target around reaching around 60 million to 70 million in revenue.
Market potential, if I talk about, there are major players. If you see in, there are headworks. If you see RW Gates, we have webs, they’re already doing a big business of around 30 million 35 million INR40 million in their field of business. So we know we have a very big market potential. Our marketing is already working, seeing the potential, we are already expanding into that market, right? Coming on to UK, we have just started. As. As I told you, next four years, we have to reach 10 million. We are already onto that. If you see we acquired at 2 million, we are already targeting something about 3.5 million just in a span of nine, 10 months, right?
And next year we are already — we are opening up with an order book of anything more than 3.5 million. So we see the businesses there, we are into marketing. We are adding people there. So in UK, we were having 13 people, we have added marketing people-based out of Mid of England. We have already added five months back, he has started producing results. We are — since England is a big area, the UK is diverted into four zones. So you have England, you have Wales, you have Northern Ireland and then you have the complete England portal.
So we have to cover south of England. So we are already into search of that person who will cover. So that’s where UK market is into. Talking about Par East, Middle-East, so is already into those things, the complete export team, we are expanding the export team, they are into those business. Europe, we already tied-up with Invent, Europe, we already have business, so we are expanding into those business. So the globe
Unidentified Speaker
Is not really short to expand our kind of business. And since the water business potential as the — is growing very-high, you would have seen PM Modi stating about investing more than more than INR500 crores into water business and then all these projects like and Namami Gange, Namade and all those things will bring a strong emphasis on-the-water business that needs to grow up. So that’s really not letting us go down into those businesses. What it is.
Unidentified Participant
Got it. So
Operator
To get back-in the queue.
Unidentified Participant
Sure, sure.
Operator
Thank you. We’ll take our next question from Mr Saril Desai. Please unmute yourself and go-ahead.
Unidentified Participant
MR. Sudesh. Gentlemen, my question is on this order book that you disclosed, right? For the last 3/4 now, we are in the range of about INR939 cro INR40 odd crores. There has been no increase in the order book. So given these numbers, how should one think of the revenue over the next couple of years? Although you have given revenue targets, but orders on-hand don’t really kind of match-up with the — with their aspirations or your targets. So it would be great if you can explain how this would move.
Unidentified Speaker
Yeah. So you’re seeing the order book position. At the same time, you would appreciate that the sales are increasing and as explained in the presentation, sales have gone up by 45%. Right. Right. So the gap is something if I’d have done the sales, let’s say, 15% 20%, the order book would have crossed INR1,000 crores by this time. So we are continuously on the sales as well. And with the increasing market potential, as we explained next year, we are targeting something between 40 million and 45 million in US and around 4.5 million to 5 million in UK, plus Middle-East exposure going up, that will definitely, definitely increase the order book position.
But at the same time, when we are looking off a sale, let’s say, crossing around — touching around INR800 crores next year, you will always see that, that gap is the, right. So if you have to consistently grow by 20%, 25%, 30%, you will always see that the order book is always INR900 crores or INR850 crores, but you have to always take into mind that the sales is continuously increasing.
Unidentified Participant
In fact, sir, exactly that is my confusion, right? So if, let’s say my — you’re not very short-cycle products company, right? It takes at least 36 months-to — from an order to revenue conversion. If my orders are not growing 20%, then, yes, this quarter you’ve grown 45%, but how can I figure out if you’ll grow 20% next year also not if the orders enough are not on-hand. That’s where the confusion is.
Unidentified Speaker
Yeah. So let’s say, I have to do INR800 crores or INR850 crores next year. Starting with INR850 crores order book will always claim that I’m doing INR800 crores next year, right? Number-one. For the next year, I am trying to explain you more deeper so that you get an idea. So with an order book, open order book of INR850 crores, I’m easily targeting INR800 crores for the next year, which is not a problem.
Now when I’m saying that I’m increasing at INR10 million on the on the US side and around INR2 million on the UK side, I’m already adding around INR150 crores to INR200 crores on the order book, right, apart from the current business, that is already happening, plus increase in Far East, Middle-East, Southeast Asia will always function more orders as compared to — and this is a business, this is a growing business. Plus water business is already expanding.
As I explained in my previous conversation that the water business is continuously growing up. So the orders will anyhow pour into, plus we have also expanded our product range. You would have seen, we also tied-up last year, we already had the technical collaboration with Invent for the disc filters. So this filter was not growing up as a market in last one year. Now just as recent as last month, we received — in last two months, we received orders worth around INR3.5 crores for disfillers only seven filters which — and another — another orders worth around INR3 crores are in pipeline from Malaysia, right?
So that’s one. Then we are also expanding into, mixers, decanters and these kind of business, right. So with the product expansion, you are also expecting more orders to plung into.
Unidentified Participant
Understood. So effectively, sir, you’re saying that for INR850 crore revenues next year, you have more than sufficient orders on-hand today in order to get new orders, right? The conversion should happen.
Unidentified Speaker
No, you have to always — you have to yearn for more orders, otherwise, the same question arise next year that you are still at INR800 crores and so next year, you will have an open order book of more than INR1,000 crores or something like INR900 crores.
Bhuvanesh Pandey
Salil, exactly, INR850 will not converted in next year revenue, but also whatever we booked in first-six months also convert in the revenue. So definitely we are more than comfortable with the order booking. There is no chance for up the revenue target of next year.
Unidentified Participant
Got it, sir. Thank you so much.
Operator
Okay. Thank you,. We’ll take our next question from Mr Parik Sheth. Please unmute yourself and go-ahead.
Unidentified Participant
Hi, thanks for the opportunity and congratulations on a good set of numbers. So one of the things that you have highlighted in today’s call is about how we expect to do more manufacturing in the US and you have already tackled how your margins will not be impacted because you’ll be competing with the prices of other players who are also manufacturing in the US and I appreciate that. But the reason I thought that we were growing as fast as we were growing is because we were gaining market-share because of the cost arbitrage we were able to have because of our manufacturing base in India. So if we increase the amount that we’re manufacturing in the US, won’t we lose a right to win or it is right to win as fast?
Unidentified Speaker
No, there is no problem as Dharmend explained. First of all, there is no marginal difference in the profitability there first. Second, you will always win more orders when it comes to lead-time. There are certain orders, which currently you may or may not be processing because you always have to consider the transportation, which is like eight to 12 weeks as a conversion factor. So the moment you are able to do those things there, you will always have orders in the tone wherein the delivery requirements are 12 weeks, 14 weeks, 16 weeks.
So currently, we are doing lesser orders there wherein delivery are tired, which our competitors when you talk about waves, watermelon, R2 gates are easily able to convert those things. Now with the complete expansion of the facility there, you will always have the leverage to do more things there, which will always add — which will always leverage you on the operational cost as well.
Unidentified Participant
Got it. So if I’m understanding you right, you’re saying that you’re developing a manufacturing base there, but that is for the short lead-time items. The long-lead time items will continue to manufacture out of India.
Unidentified Speaker
No, no, no, no, no. I’m not saying that. Let me let me clarify you. We are just making — we are just undergoing a US Army project, which is Kansas City. I would say from an Indian aspect also, this is one of the biggest project. So there is no death of technical know-how or the facility impact there. We already have all the facilities there to give you an idea and you. We have the CNC machines there, we have the laser cut there, we have the water jet there, all — all facilities are there just to ramp-up the facility to make sure that we are adding up to the revenue from Orange, let’s say, US and second thing to make sure that there is no impact or cloud, which is opening around if at all BABA comes into a full-fledget implementation.
So just to make sure, see, when we are manufacturing there, we will face competition for the — from the local people only. So the cost of manufacturing will be the same when you are competing there. Currently, you are manufacturing from India then transporting so logistic costs and all those things plus CHA handling and all those things are coming into impact. So we are there competitive, but we have margins in the US project. You see when we acquired, we had losses for three to four years continuously in US and then we came into profit because the revenue — revenue projections and the actual revenue realizations immediately increased.
When I say we are doing 45 million next year, we are doing 50 million next to next year. So definitely when you have more orders and current we have order book of more than 45 million in US right now, right? So we are very clear that we are not in terms of orders and profitability is not going to get impacted. But on the contrary, we are adding more facilities to make sure that we are not in terms of manufacturing aspect there.
Bhuvanesh Pandey
Yeah, adding to comments. We are going to expand because if there is any rules after Trump for the more manufacturing to the US, then we are in the capacity to manufacture there also. So we are in planning to that. So as and when we are going to expand our orange facility in next year and after that if we need that there is more capacity required, then we have already plant in Eastern. So we go to construction for that plant also in one year, two years. So it is all on the depend on the situation of their political and what they are coming for the next US manufacturing and everything.
Unidentified Participant
Makes sense. Thank you so much. I’m done.
Operator
Thank you. We’ll take our next question from Mr Diraj Singh. Please unmute yourself and go-ahead.
Unidentified Participant
Thank you for taking up my question. Sir, the first question is, we have seen a very good growth from Engineers. So could you please explain how this growth has come — one from which equipment exactly
Unidentified Participant
This growth has come and how do you see it going-forward? S
Unidentified Speaker
O, as you see process equipment, right? So process equipment, I already explained in my previous conversations that cleaning reuse of water is going to be a bigger impact on the entire society and the infrastructure, right. So that’s how companies like Enviro,, L&T are emphasizing on making up new seaway treatment plants, pumping stations and basically water and wastewater treatments, right. So process equipment is going to get a bigger hit.
With our kind of infrastructure, and as I told you, we have already established a plant. Currently, we were not having any manufacturing facility in Chennai. So now we are inaugurating a manufacturing facility that will be a steel of heart facility in and that will be — that will be catering to the entire process equipments in India outside as well as we are going to manufacture and cater to screening requirements from there. That’s the screen equipments are also going to be manufactured that will be supplied to the south part of India. So process equipment, that’s how it is going up. Currently, there is a very good order book position in.
So we apparently see a very good growth in, Chennai.
Bhuvanesh Pandey
Diraj, if you see in ’23, we are already doing INR27 crores in. By the way, we have dropping last year some turnover because of some one or two big order we have less. That’s why it is dropping last year. Again, we recovered that and now we are in a position that we do very good in this year. So,
Unidentified Participant
Got it, sir. So my second question is, we have recently commercialized, as you said, we have recently commercialized this filter. So how do you see the margin profile in this particular segment and how do you see the growth of this particular division?
Bhuvanesh Pandey
No, exactly what margin. Commercial means,
Unidentified Speaker
You are talking about this. Can you come up with the question again?
Unidentified Participant
Right. We have — I mean, we have sold some disk filters, maybe seven or eight like whatever the number you’ve said recently. So I just wanted to know what is — what is the kind of margin profile, EBITDA margin profile that we see in this filters and how do you see this going-forward for FY ’26, the sales from finter.
Unidentified Speaker
Okay. So let me explain you. Initially when we made a technical arrangement with Inventor, so technical collaboration with Invent three years back. So we started with disc filters, we had few orders, but then the order went down because of the cost. We were importing almost 85% of the overall product, only minor fabrication we were doing for here. So our costing was extremely high. So just to give you a very rough example, let’s say if we are manufacturing a three-wheeled disk filter, let’s say, an eight-wheel disk filter, it was costing us around INR1.5 crores, right?
So now in last three years, two years going to this thing, despite Enviro,, very, very reliable customers to us, they were saying your costings are very-high. So we discussed internally with invent and then we completely localized all these products. So currently is around just 45 lakhs to 50 lakhs. So you can understand that we have reduced 50% of the entire pricing, not even cost, cost is going much down. 98% of the products utilized in this complete equipment is now localized, indigenized, including fabrication, all four genes, machinings and everything. The main part is the filter mesh, which was imported from Germany that also we have localized, although it is coming from Germany, but almost at, I would say, less than 50% cost, the machine which was required to make the filter met, we have already procured inside and we have started manufacturing it in-house only.
So all these prices have come extremely down. That’s why I told you just in last few months — recently few months back, we received orders for seven disc filters. We already have orders from Malaysia now for three filters and now disfuilder business is really going higher. So EBITDA margins and PAT margins on this particular project-wise, this will go higher. We have around, 20% 25% of margins on these projects.
Previously, we were doing 0, zero even initially just to develop the launched the product in India, we sold-in losses just to make sure that we develop this product. In this product group, we have no Indian manufacturer as competitor. Just to give you an information, we have Nordic — we have other competitors aerobic, Nordic, Nordic Siemens primatek all these things and no one is manufacturing in India so we have a strong advantage on even localization of this so any of the margins have to go up I hope I have answered your question.
Unidentified Participant
Clearly, clearly. Yeah, that’s amazing. Thank you. And my last question is, in recent times, many water EPC companies are talking about growth coming from significant growth from Saudi Arabian countries. So do we see any manufacturing facilities coming from there in next two years or three years?
Unidentified Speaker
Yeah. This is a dicey question. Just one and a half months back, I was in Riyadh discussing with certain people, I met the authorities. So I would say it’s in the thought process, nothing materialized, but we have already thought upon that. So nothing concrete, so it’s not good to comment here, but we have already thought on that much.
Unidentified Participant
Great, sir. Thank you. That’s answers my questions.
Unidentified Speaker
Yes.
Operator
Thank you, Hiraj. We’ll take our next question from Mr Kunal Mehta. Please go-ahead.
Unidentified Participant
Good evening, sir, and congrats on the good set of numbers. My first question is, can you just give some guidance on the working capital days, with the impact of the BABA Act coming in, how would the working capital days or the cash cycle be affected?
Bhuvanesh Pandey
Working capital is normally stable like last two, three years, it’s around 100 to 120 days for the and same 120 to 140 days for the inventory. And for, after buyback, we are already doing some project under. So normally it is a very good margin in that buybaik project. So there is no much change in the working capital cycle. So it will remain around 150 to 160 days that will be the same for the next three years or will there be initial probably
Unidentified Participant
Okay.
Bhuvanesh Pandey
Yeah, not as for say three years, but one to two years, there is no change.
Unidentified Participant
Okay. And sir, though, whatever capex, I think about INR110 crores to INR120 crore capex that is lined-up and part of it is already done. So that will all be done through internal accruals or will there be some debt that will be taken by the government?
Bhuvanesh Pandey
Yeah. Last year we have taken around term-loan of INR10 crores. And this year also we are looking for if we think that there is a liquidity problem, then we definitely take the term-loan for the further expansion. Presently we have not taken any loan for that, yeah.
Unidentified Participant
Okay. So it will be partly done accrual part.
Bhuvanesh Pandey
Partial from internal accrual and partial parts from the
Unidentified Participant
And sir, my last question is, sir, can you like maybe from an internal research, you would have the size of the Middle-East market because what is the market size for Middle-East, Saudi and UAE and all those regions. So any guidance on that, how big the market is over there?
Unidentified Speaker
Yeah. See, when you talk about the entire Middle-East, Middle-East is a very big market. Right. Yes, yes. Let’s give you a very small idea in short. Middle-East, when you talk about, Cyprus, AJF, Palestine, Lebanon,, these are all US-funded places, right? So you have — you have good margin you have very tight margin projects coming up because there the competitors can be India, China, Vietnam, anyone can go. But when you talk about markets like UAE, Saudi, they are very, very good margin projects and normally with Waterfront as an acquisition and just going very strong, we have good margins.
So if I talk about gates, screens, business, only these three business and I’m currently not talking about the process equipment and other products that we have, we see that it will be around INR400 crores to INR500 crore business in the coming future years. Currently, there is a very huge potential. Desalination market itself is around 300 to INR500 CR, very big market. But you just cannot explore all the market and political scenarios and all those things taking place. And that’s why I told you we are also considering building up a manufacturing facility in Saudi, but that’s not very concrete.
We will see exactly what happens. But the market is extremely big.
Unidentified Participant
Okay. Sir, just one application-based question. So there’s lot of cloud that happens in all these countries because of shortage of rainfall. So any application of our products in cloud seeding like technology, cloud technology?
Unidentified Speaker
Not exactly in, but as I told you, the moment you talk about flooding, the rising water levels, these all comes into the same scenario wherein there is a cloud wearing and then there is an excess in one area and then that leads to storm water and flooding into the entire area. So our products are just
Unidentified Speaker
Just good to go like that there. So that’s an opportunity in this space.
Unidentified Participant
Okay. And just one last question. Sir, the approval system for different countries is different like for Middle-East, if you have to penetrate more. Do we need extra level of approvals of our products?
Unidentified Speaker
So in short, let me tell you, we are already one of the companies who are approved in majority — majority of countries globally. And with the kind of kind of brands that we have like should, Mar, Waterfront, Shufa, Sure Steel,, we are already globally available. So we are not in dearth of approvals anywhere and whatever approvals recently we got the Ashgar approval, which is very — which was very easily done and we got it in two, three, three months because of the kind of brand, the kind of product quality and deliveries we offer. So we don’t see any problem there.
Unidentified Participant
Okay, sir. Thank you and all the best.
Operator
Thank you. Punan. We’ll take our next question from Alisha Mahawla. Please go-ahead.
Unidentified Participant
Sir, good evening. Thank you for the opportunity. My question is for clarification. We were mentioning that we’re increasing our capacity in US, both in Orange and Houston. But earlier one of the reasons why we had to dial down our operations there was, availability of skilled manpower. Is that easing or now with the capacity that we’re increasing, how are we looking at addressing this problem?
Unidentified Speaker
So Alicia, that is one of the rider that we see. One of the problem statement that we see, manpower availability and to be more precise, the skilled manpower availability is a serious death across the globe. I am traveling anywhere in Germany, US, everywhere. Skilled manpower is a serious concern and we also face that in US, even UK. As I told you in UK also, we are searching for manpower since four months not getting the right manpower and same is in US even in technicians, we are not getting the right manpower, but that’s how the overall market scenario is. So we will keep searching and getting the manpower,
Unidentified Participant
Sure, but is that going to eventually impact our profitability because if — because the availability is so limited, the cost of that will also be significantly higher, which is also the reason why these entities, whether it’s running on the waterfront went into losses in the first-place. So just trying to understand how are we going to do it differently this time.
Unidentified Speaker
So Alisha, there is no effect in the profitability. Just to give you an idea, we are not searching for any senior position of the people. We have already flooded with and we have already filled all the positions which are required on the top brass. You see the entire top — top management is completely there in the place. So whatever we are searching is worker level, technician level or junior — junior, engineer, junior management level people. So they are not going to impact much on the cost and thereafter, also as I told you in my previous communication, we are not going to increase the manpower, like we are not doubling the manpower anywhere, anywhere in any country.
Like in UK, we are adding only two manpower, which is not is not going to impact much, not on the senior-level. We are in US, we are working — we are searching for, we are searching for machines. So they are very, very cheaper. I mean, ’23, $24, $25. The only thing is skill requirement, that’s it. So that’s not adding anything that will affect the profitability of the business.
Unidentified Participant
Understood. Okay. Also, can we just call-out what is the revenue from Waterfront in Q3 or Nine-Month FY ’25
Bhuvanesh Pandey
1.8 million. It’s 1.8 million of AE. We have acquired the water fund in from 1st of May. So in eight months, we have done 1.8 million and we are in-plan for around 3 million in this year,
Unidentified Participant
3 million in FY ’25,
Bhuvanesh Pandey
25 million.
Unidentified Participant
And what kind of margins would we be doing in your waterfront?
Bhuvanesh Pandey
No, it’s a loss presently.
Unidentified Participant
What will the breakeven revenue breakeven point be for the more
Bhuvanesh Pandey
4.5 million will be breakeven
Unidentified Participant
Understood. Okay, thank you so much.
Operator
Thank you. We will take the next question from Tesh Patel. Please unmute yourself and go-ahead.
Unidentified Participant
Yeah, thanks so much for the opportunity. Am I audible?
Unidentified Speaker
Yeah.
Unidentified Participant
Yeah. So sir, I wanted to talk your thoughts on if I look at the margins for this quarter, it’s around 23%, right, despite a higher — voice is not. That was hello.
Unidentified Speaker
So your voice is not clear. I mean, it’s going
Unidentified Participant
Just a second till the taste gets back,
Operator
We will take a follow-up question from Dixan Gulchandani. Please go-ahead.
Unidentified Participant
Yes, sir. So we have seen some marginal stake sale from and by. This is — can we expect this to be continuing or is this the peak of sale and now they won’t pay anymore for the sale of shares?
Bhuvanesh Pandey
No, no. Last quarter, he has clearly explained that he has some need of a fund for his son in USA, that’s why you sell some quantity, which is very less and that’s all about.
Unidentified Participant
So will this stake sale continue or like can we expect this to be — this was hit and now we won’t be seeing any sales.
Bhuvanesh Pandey
It’s a one-time. It’s not.
Unidentified Participant
Okay. Okay. Another question is on our margins and EBITDA margins. So sir, had mentioned that we are targeting around 21% to 23% of EBITDA margin for the year. Are we still online for that for the whole year?
Bhuvanesh Pandey
Yeah.
Unidentified Participant
Okay. My last question is based on — sir, we are looking around INR1,000 crores in next year — next two years and we have been growing around 30% 31% on our top-line. Do we see the next two years to be better than a 30% 31% growth?
Bhuvanesh Pandey
We are looking at 20% growth in next one or two years, next two years.
Unidentified Participant
Sir, again, Bazaar crore home breakfast, it would be more than 30% of growth, right?
Bhuvanesh Pandey
Okay. No.
Unidentified Participant
If I are considering INR675 crores as what we make this year. Then around INR1,000 crores, we are seeing then it will be maybe around 30% or more.
Bhuvanesh Pandey
It depend, we are targeted INR675, but it will be more than INR675 year, whatever. So our next year target is at 50 and up to that our target is. Yeah.
Unidentified Participant
Okay. Congratulations, sir. Hope we surpassed all our targets. Wish you all the best.
Bhuvanesh Pandey
Thank you.
Operator
Thank you. Thank you. Yes, Patel. Please go-ahead.
Unidentified Participant
Yeah. I hope now it’s proper.
Bhuvanesh Pandey
Yeah.
Unidentified Participant
Yeah. Sorry for the disturbance earlier. So my question was, I wanted to get your view on, I mean despite a higher base in this quarter, revenue base and probably our fixed costs are probably most of them are same, right? We are — there is no new facility we just started. So I’m just trying to understand why haven’t our margins improved from, let’s say, 23%. I mean, if I look at the earlier quarter, we did about INR140 crores of sales and about EBITDA margin of 23%, but this quarter we did about INR180 crores of sales on a consol level, but the margins were still 23%.
And for us to achieve, let’s say, INR675 crores top-line with EBITDA of about, 21% 22%, we would I mean, need to close the last quarter at about, 20% 29%. So I just wanted to get why the margins were low and then will we able to achieve those high margins in the last quarter in so that we can close our full-year at about 22% margins.
Bhuvanesh Pandey
You can see our last year, last quarter also and we are doing around 240 plus in last quarter. So it is a 50% of what we achieved in nine months. So definitely, if we do more revenues in last quarter, we definitely achieve more EBITDA and more to in last quarter because some fixed expenses are fixed, which will not increased quarter basis.
Unidentified Participant
Got it. But then this quarter also commodity prices were also not like — I mean, they were stable, but then still margins were lower on a higher base. So I just wanted to get a view on that side. I mean, did we execute any orders which are low-margin or was there anything like that?
Bhuvanesh Pandey
It’s not like that. If some order of dispatching this quarter is at low-margin, then it will affect the margin. So it will depend on the — what revenue occurred in this quarter without — either they have good margin here, some less margin. So it’s depend, but we are going to year-wise margin and we are looking for the year-wise margin and we are comfortable that we are getting what we are expecting on that.
Unidentified Participant
And sure, I guess — and sir,, I guess you said about 175 billion or I mean bill has been passed in Europe for the next five years, 175 billion, right, that’s
Unidentified Participant
About what you said for in the Europe, the opportunity in Europe.
Bhuvanesh Pandey
Market-share.
Unidentified Participant
Got it. And from out of about, let’s say, 20 odd references, we have got entry into the three references, right?
Bhuvanesh Pandey
Yeah.
Unidentified Participant
And okay, got it. Perfect. And we have signed an — you said we have signed an agreement with an EPC contractor. I forgot the name
Unidentified Speaker
That is in UK we are on the verge of signing that. See there are lot of legal things which takes time in UK. We have already had the meeting myself and our MD, Mr Pratik had been in UK and then we already discussed in detail their MD was there. So you know, Hamburger Engineering Services have been taken-up by right as one of the biggest contractor and our — let’s say, they are the biggest contractor in UK.
They are already interested, they have already given in writing that before March, we will be signing-up this agreement. They are already listed in majority of frameworks so that paves the park for a lot of business coming up through. In fact, have you started perfect.
Unidentified Participant
And sir, have you started shipping, I mean selling screens in USA, I mean, because we were supposed to — you were saying that we will start selling screens in USA very soon.
Bhuvanesh Pandey
It’s still not started.
Unidentified Participant
Okay.
Unidentified Speaker
Yeah. Definitely. See, we have sold screens in the past. It’s not that we have never sold screens. We have already sold screens — screens from India, we manufacture screens from US and sold. So screens is not that it’s on a zero level. We have not done that. But it’s something that our US market is currently focusing only on screens, the US market only on gates. And then as and when the opportunity is there, we will work on screens. So screen already
Unidentified Participant
So screens is still a time to for us to enter into US market with screens, right? I mean a quarter or two more.
Unidentified Speaker
Yeah. Currently they are not focusing so big on screens that because already the market is so growing that you don’t have death of orders and we have just 60 people, out of which 25 people are in Houston, including marketing, project management, finance everywhere, all these people who are based out of there. So we don’t want to increase abruptly the manpower, the business is coming from gates the moment we start thinking of into screens, we will definitely do because, who is the President marketing there has his entire background in screen.
He has 23 years of experience of screen only. He was the Vice-President marketing and. And position currently is very, very down. Is low on the business in the US market. So we are just seeing an opportunity, but then currently we are not doing, but definitely it’s not no that we are not going to do it in screens business in the near-future. So we are definitely seeing an opportunity there.
Unidentified Participant
And so largely. And sir, when you said about 3 million, your 3 million, let’s say, USD would probably be the sales number for the UK business, how much would it be shipped out from India?
Unidentified Speaker
So out of that, I would say 70% would be shipped out from India, 70% to 75% and that will be the case when we reach 10 million also. Pardon?
Unidentified Participant
And that would be the case when we reach 10 million also, right?
Unidentified Speaker
No, no, no, no, no. We are already establishing manufacturing facility in UK, but definitely still I say 70%, 80% of the entire business would be coming out of India only because in UK, you don’t have any constraint restraint like Paba in US or something like Pennsylvania and US. So still we will continue to do it from India and that’s why we are expanding our business in India. So it’s like still I would say, 80%, 85% range of things will go out of India for reaching to 10 billion.
Unidentified Participant
And sir, last question, if I may squeeze in. So sir, what I understand is, since you said Uber is the only competitor in the UK market as of now. So I assume our screen would be a big focus area for us in the UK market because probably, let’s say, even at a lower-price, you would be probably making good margins there, right? So let’s say on a 10 million sales, how much would be screens? And I’m assuming it would — the margins would be much better than the Hunt also maybe because if is the only player there
Unidentified Speaker
So screens business, once we start, we get it. See, screen business starting will not be an easy thing. With support previously had already supplied screens in UK. With that reference, we are trying to build-up things. I would say screen business will bring you around 30% to 35% of the overall business in the current scenario, right? And as the business grows, as the framework, UK runs on framework, majority of the water utilities runs on framework.
So you will not get business unless and until you are on the framework. We have contractors as we are trying with Galiford, so through Galiford drive, we can easily enter into, we have already quoted for screens, right? So we see a very big business potential for screens in UK, but currently, we are focusing on gates and screens we have started offering. So we see a potential there.
Unidentified Participant
Got it. Got it. Okay. Thank you. Thank you so much. That’s all from my side.
Operator
I will take a follow-up question from. Please go-ahead.
Unidentified Participant
Sir, can you just give us a general timeline for order received to revenue, let’s say if we have received an auto this quarter, how much time does it take for us to recognize it as revenue?
Unidentified Speaker
So it depends actually. It depends on the size and quantum of orders. So something between four up to seven months could be a general lead-time, but it still depends, let’s say, US Army Corp order is there to be delivered in US, it can be one year. Currently, we are just on the verge of getting a radial gates order, which is a very, very big order. I would say in US value could be anything like INR6 million to 8 million and the lead-time is four years.
So it depends on the size, the value and the quantum of orders, but a general way, if I would say, anything between four to seven months would be the lead-time for delivery. Order sir. For small order, small orders, normal order. For big order, it’s one-to-one in two years.
Unidentified Participant
Okay, sir. As in big order would be like more than $3 million, $4 million. That’s what you’re considering?
Unidentified Speaker
Yes.
Unidentified Participant
Okay. And sir, out of this INR933 crore order book, how much do we think that we can — how long will it take for us to sort of consume this whole order?
Unidentified Speaker
Consume this in the coming financial year?
Unidentified Participant
As in like the INR933 crore order book we have, how long will it take for us to consume the whole order load?
Unidentified Speaker
That may be around 1.5 years to two years. Yeah. That depends.
Unidentified Participant
Got it, sir. Got it. Sir, thank you so much for the amazing clarity. Thank you.
Operator
Thank you. We’ll take a follow-up question from Arisha Mahawna. Please go-ahead.
Unidentified Participant
Hi, sir. Thank you for the opportunity again. Sir, just wanted a clarification, did we — did order get canceled or any revenue get deferred in this quarter?
Bhuvanesh Pandey
Or the in this quarter. Yes, around INR61 crores. Yeah, around INR60 crore. Yeah. No deferred actually it is not recognized this INR60 crores?
Unidentified Participant
Yeah, okay, actually that was the last question for today. I would request management for closing comments.
Unidentified Speaker
Okay. So thank you all. We would like to thank you to keep patience and also keep us excited about having those things. Josh is already gaining good business and we have good market potential to see. And with all your support and all your availies, we definitely feel that we will be achieving this year’s target and the years to come. So thank you all for the support.
Bhuvanesh Pandey
Thank you. Thank you everyone.
Operator
Thank you everyone for joining us today. If you have any additional questions, you can reach-out to us anytime. We wish you a good health and look-forward to seeing you again next quarter. Have a good day. Thank you. Thank you. Thank you