Kalyani Cast Tech Limited (NSE: KALYANI) Q4 2025 Earnings Call dated Jun. 10, 2025
Corporate Participants:
Unidentified Speaker
Naresh Kumar — Chairman & Managing Director
Analysts:
Unidentified Participant
Garvit Goyal — Analyst
Rohit Singh — Analyst
Ayush Wadwani — Analyst
Madhur Rathi — Analyst
Saurabh Kumar — Analyst
Dinesh Kulkarni — Analyst
Kartik Khandelwal — Analyst
Ankur Gulati — Analyst
Khokan Sarkar — Analyst
Ganesh Nagarsekar — Analyst
Vishal Vaya — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Kalyani cast Tech Limited FY2024 to 25 earnings conference call. As a reminder, all participant lines will remain in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal the operator by pressing Star then zero on your touchstone telephone. Please note that this conference is being recorded. Ladies and gentlemen, please note this presentation prepared by Kalyani Cast Tech Ltd. Is for informational purposes only and does not constitute an offer, recommendation or invitation to purchase or subscribe to any securities.
It should not be relied upon for any contractual commitments. The company has based this presentation on information it deems reliable but makes no warranty regarding its accuracy, completeness or fairness. This presentation may not include all relevant information and any liability for omissions is expressly disclaimed. Forward-looking statements in this presentation about market opportunities and business prospects are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materially. The company is not obligated to update any forward-looking information and is not responsible for third-party statements included in the presentation. I would now like to hand the call to Mr.
Naresh Kumar, Managing Director of Kalyani Cars Tech Limited for opening remarks. Thank you. I’m over to you Sir.
Naresh Kumar — Chairman & Managing Director
Thank you Mr. Vayan Naresh Kar Kalyani Family I am again promoter and the owner of Pelganic Aztec along with you as it says. So I hope I’m audible to all of you. So most of the information I have passed through in the form of a presentation regarding what we have done in the last year and what we have planned for the next year to come. So I will start with the brief introduction of the company for the new people who have become our new family members. The company has started the operation way back in 2014 as a small steel foundry.
And at that time our major customer was Indian Railways. We used to make casting components for the Indian Railways. That’s how it is the name of the company, Kalyani caster. So in 2021 the company has diversified into the manufacturing of container. At that time this sector was not very good. But now this is a very live and bubbling sector for just for the appreciation purpose. Way back in 2021 this particular segment of the industry may not be more than 5 to 6 crores. Presently with our efforts this particular segment is contributing over 300 crore rupees of the Indian economy and providing good amount of employment opportunities to skilled and semi skilled people.
Till date company has manufactured almost 13,000 containers and saved almost 360 crore rupees of the power maps in last four years. It is worth mentioning that at that time as I told you in 2021 when people were closing the source. So we have took the courage to start this manufacturing activity. Our main focus is to design, develop and manufacture containers safely. Container cargo specific container customized containers so that we can reduce the cost of transportation using railways. And we are basically different from our competition in terms of that we provide to our customer full logistics solution to their requirements.
And that 2425 have been very eventful and spectacular year for the company. Lot of good events have taken place for us. The company has entered into the for the first time one billion rupees turnover. And now we have gone beyond it. As you can see in the next slides, the company has been awarded very prestigious MSME of the year 2024 by Economic Times into the manufacturing sector. We have received the award on 20th March 2025. In addition there are many other business share awards which the company has got depending upon its performance and growth. Next.
So this is about the company. Now I will brief you tell about the promoters. There are three main promoters of the company. One is Naresh Kumar. I am basically. I’m taking Mechanical Engineering from IIT Madras. I have served Indian Railways for 17 years at class A officer. I have been architect of many innovative ideas on Indian Railways. Running of double stack container trains. Like running out double stack grass container trains. I have been engaged in design, development and manufacturing of special containers in order to reduce new cost of transportation. Now we have started another segment of designing of spatial new wagons Container wagons facility to increase the commodity basket for the Indian Railways.
Jasir Kas Banganu is also on the line. He runs his own NBFC firm based in Calcutta. He has been helping company through strategic planning and advising on the financial matters. Javid Aslam has joined from Canada. He is a civil engineer. He’s running all business of real estate in India and abroad. He also advised companies for the strategic important issues. Now let us discuss the financial highlights of 2425. So the company’s top line has increased by 47% from 9511 to 139.8 almost for 140 crores. That is what I have indicated during this particular time of the last year.
So whatever we have indicated we could. It’s a matter of great listing for us. Even the steel rates have been down compared to last year. So. But our top line has been as per the target. So we made more number of containers in the same top line. EBITDA has increased by 44%. Our profit before tax increased by 45%. And PE PAT has increased by almost 48%. The book value per share has increased from 70 to 80 almost 90 rupees. So there is increase of 28%. Earning per share has also increased substantially by 21% from 16.43 to 19.84.
And the current ratios have increased from 3.9 to 6.5. There is an increase of around 63%. And the best part is we are almost tax free company. Our debt to equity ratio is 0.08%. That is basically in the form of some uses of the working capital. Our major clients. We have added some clients during this particular financial year. DP World has been helping us in last 45 years. CJ Darcy Preston Logistics Navkar Corporation Musgr. Of Defense Company Western Carrier Glass and Private Limited NTPC again a public sector unit. NPCIM is the government of India company.
So now next about the order book for this finance. Last year I have indicated that at this point of time that we have got orders of almost 80 crores which we have to complete by almost October last year. So we have fulfilled that promise and the total turnover has been more than around 140 crores. That is what we are indicating this time. Company has got the sound order book presently around 110 crore rupees. Out of this under 10 crore rupees 31 crore work has been already been done in the first two months of this financial year which is Almost more than 2 crores more than the last quarter of the last financial year.
The company has adopted many innovative ideas in order to serve customers satisfactorily. And further negotiations are in progress and we are likely to reach whatever the targeted volumes we have got for this financial year. So it’s a good start for the financial year. So I thought. Let me convey this information to our esteemed investors during this call. Now this as I told you that by 2425 has been a great eventful year for us. So we have put up very big expansion plan for the future. The company has acquired 115 acres of land and out of 144 acres land.
This 140 up to 150. Within this month I think we’ll be completing this 144 acres of land in our name. And the location of this location of this site is very near to the port. And this expensive plan will be developed by Kalyanikastec through its subsidiary or joint ventures so that we can add value at various various in various segments. So first our expense plan is we want to set up a Gati Sapticardo terminal which will be like a multi modal terminal to provide the facilities for the container loading or the cargo loading from that particular place.
The in principal approval from Western Railway has already received for our site. We have submitted our detailed project report to the Western Railway. Because this particular station comes under Western Railway. On this particular land piece we will be setting up a warehouse manufacturing unit with the annual capacity of around 8,000 units per year. And the construction of the factory has already been started. And basically this wagon manufacturing facility will be developed in segment starting from 2400 to 8000 another four to five years time. Here we will be having the container manufacturing facilities also for at least 10,000 containers annually and 6,000 at the existing plants.
And we have a total 16,000 containers manufacturing facility with us. We will be setting up a new unit for manufacturing of refrigerated containers at this location. We will be as a part of backward integration, we’ll be setting up a steel foundry for bogies, couplers and the wheel set of the railway wagons. There will be some wagons and containers which will be designed to ensure like forging, etc. And the capex for this particular expansion will be funded through internal generation, security, debt and other FBI mode. We are trying for that also. So in nutshell, this facility will be one of its kind in the world which have got all major many solutions under one roof.
For example rail terminal for loading, unloading of containers and other cargo wagon factories or supply of wagons used for containers and other railway wagons. Steel founding for wagon and container components, container manufacturing or supply of containers and cargo and other refinery needs to have maximum backward and forward integration. Idea is that how we can contribute to the reduction of the logistic cost. So under one row all these facilities, this will act as a many industrial parks and the major multimodal park. So anybody, anybody who wants to send any rail their cargo from this place using railways can use this facility.
So we have got a big vision. Basically as you know, the 2425 has been a great year and it has set up significant milestone for us in terms of growth and operational. Our vision is to put Kalyani Cascade Limited as a key contributor to the nation’s health employment generation by way of design, development, manufacturing of special containers, wagons and other backward forward integration of various logistics segments in order to reduce cost of transportation. Our company is a true ambassador of make in India initiative and help in import subscription in a big way. With major extension projects Getting completed in FY25 26 we expect the revenue increase will have a Quantum joint from 2627 from the additional manufacturing activities presently we are one of the biggest container manufacturers in India.
We have got the vision to become the biggest wagon manufacturer in India through major backward and forward integration projects in line. All these efforts will have significant change in the logistics scenario next to four to five years in terms of efficiency and cost of logistics will help India to compete in the community of community of nations for examine domestic manufacturing so this is the disclaimer basically present as the disclaimer has already been read out by so now we can go for any question answer from the investors or from anybody else. Thanks for your attention.
Questions and Answers:
operator
Thank you ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue you may press star and 2. Participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Umang from Invest Analytics Advisory. Please go ahead. If you can please unmute your line and ask your question.
Garvit Goyal
Hello, Am I audible?
Naresh Kumar
Yes, please go ahead.
Garvit Goyal
Hi, good afternoon sir. Decent numbers. My first question is on the capex plan that we are having. While Mr. Naresh certainly brings a strong useful expertise, the scale and the complexity of this statex plan that will require the robust execution capabilities. So could you share your plans regarding the team building particularly in terms of leadership hires and the technical talent and the operational manpower to ensure the smooth execution and sustainable operations across the upcoming facilities that we are planning for. So that is my first question sir.
Naresh Kumar
You want the organization structure for that?
Garvit Goyal
Yeah, Management, hiring, hiring. What are. What are our hiring plan?
Naresh Kumar
You see, as you know I have been ex railing officer and we will be involving many of the railway manufacturing activities and I have been part of that also in railway so I know the expert people who are of the field and suitable. We have already hired some of the people and at the suitable time we’ll add according to the requirement idea is not to increase the overhead cost. To keep the override cost in mind so that we remain competitive to the market.
Garvit Goyal
And secondly you. You have articulated a vision to become the largest wagon manufacturer in India. However this segment. Hello.
Naresh Kumar
Yeah please.
Garvit Goyal
Yes, but this segment is already very competitive with well established players like the jwl. And technical and industry is currently face challenges in the terms of slowdown.
Naresh Kumar
Basically if you see our the statement, this is one of its kind facility in the world where you can find so many solutions at one place. So that will be our punchline and that will be a competitive as we wanted to have.
Garvit Goyal
And what time do order expectations? Because we are thinking slowdown in the new railway orders. So how do you see that we.
Naresh Kumar
Will not be having any panels for the order? Let me tell you very honestly.
Garvit Goyal
Sorry.
Naresh Kumar
We will not have any challenge regarding the order.
Garvit Goyal
Like we are. We will be focusing on orders from. IR Indian Railways only. Right? Or we will be looking for the private
Naresh Kumar
getting orders from private people. Especially the container train operators. You see the main maximum of the manufacturing units are based in eastern part of India. And the wagon which we want to make main requirement is in the northern part of the western part of India.
Garvit Goyal
Given that your majority expansion plans are scheduled for completion this year and you are expecting. You are talking about some quantum jump in the venue from FY27 onwards. But what I am noticing is we are not speaking about our growth guidance in about 26. So can you tell us what is the revenue growth that we are expecting in what is the net margins we are expecting for F26?
Naresh Kumar
As I told you this Fi has started with a very good note. We have already got orders for at least under 10 crore rupees. So I think I have spoken about the order book when we were discussing about this.
Garvit Goyal
No, you last year like you mentioned 40% growth. 40 to 40. 50% growth.
Naresh Kumar
So what kind of growth will be vary between 30 to 40%. Because the numbers are now increasing. Now you cannot have every time the 40 crores or 45 crores growth. But in absolute term it will be more. But maybe percentage term you may not be as high.
Garvit Goyal
So you are saying 30 to 45. 40 revenue growth this year, right?
Naresh Kumar
Yes, yes, yes.
Garvit Goyal
And what kind of net margins you are targeting?
Naresh Kumar
So margin will be as I have been discussing margin pack will be between 9 to 12%.
Garvit Goyal
9 to 12%.
Naresh Kumar
Yes.
Garvit Goyal
Got it. And so this 110cr order book that we are having. What is the execution period for it like last year? The same, same time The ATCR order was.
Naresh Kumar
Well by October we will be doing this.
Garvit Goyal
By October we are expecting the execution. Got it. And my last question is on the capex outlay like we are obviously entering into various various areas. So can you tell us like what is the total CapEx estimated that we are planning for and what kind of fundraise we are planning for?
Naresh Kumar
This year total in next four to five years we raise between 400 to 500 crore.
Garvit Goyal
And this year we will be raising how much?
Naresh Kumar
That depends on how we go about how much we will be able to have the internal generation and through equity. Because as I told you this will be done. Some of the projects will be done through Davies also. So depending upon the what kind of daily partner will bring and all these things. So final details at this point of time I will not be able to speak on that.
Garvit Goyal
Got it. And regarding the completion of this capex, like you mentioned, AB27 will see the quantum gift. So that means significant capex will be completed.
Naresh Kumar
We expect that wagon manufacturing should be ready in another eight, nine months.
Garvit Goyal
Okay. And what about other plans? Like they will be completed over the years, right?
Naresh Kumar
Yeah, yeah, yeah.
Garvit Goyal
Initially it will be around 2400 vegans. But you are selling, right?
Naresh Kumar
That is the initial target. But you cannot start at the rate of 2400 anniverse from the day one. Because it will take at least two to three times to have that kind of capacity. Because that is how the railway system works. Immediately you cannot get that kind of order. But once depending upon your deliveries and the performance the number of orders gets increased.
Garvit Goyal
I don’t make the future. Thank you very much.
Naresh Kumar
You cannot say immediately. It’s not a binary thing. You set up a factory today and tomorrow onward you will get the orders and start doing that kind of thing. It will be analytical analog system. It will gradually increase. Right?
Garvit Goyal
Right. Understood. Understood. So you are saying a ramp up will take time. So what gives you confidence? Like FY27 will be a quantum jump. Like what is giving you that confidence?
Naresh Kumar
Because then we are starting a new facility.
Garvit Goyal
So whatever there will be the revenue will be incremental over and about what we are doing.
Naresh Kumar
Right.
Garvit Goyal
Okay. So thank you. Thank you very much.
Naresh Kumar
Thanks a lot.
operator
Thank you. The next question comes from the line of Rohit from NVEST analytics advisory. Please go ahead.
Rohit Singh
Yeah please Rohit, come on. My question are already answered. Thank you. Thanks. Thanks. Let’s go to.
operator
Thank you. The next question comes from the line of Ashwini, an investor. Please go ahead. Ashwini if you can please Unmute your line and ask your question. Since there is no response we move on to the next question which is from the line of Madhurati Countercyclical Investments. Please go ahead.
Madhur Rathi
Thank you for the opportunity. Sir, I’m trying to understand regarding the container manufacturing industry dynamics.
Naresh Kumar
Can you speak louder? Can you please speak?
Madhur Rathi
Yes sir. Sir, I’m trying to understand regarding the container manufacturing dynamics versus the Chinese competitors. So we understand that Indian manufacturers are at the cost disadvantage of 500 to a thousand dollars. So how are we planning. I’m sure how are. How can we. How are we planning to maintain our margins going forward? Forward. And are these current margins sustainable? Sir, based on these cost disadvantage for the Indian players.
Naresh Kumar
Mr. Mr. Madurati, I think I have been speaking on this subject at length at many locations. Let me again tell you we are not into the rat race of the standard containers. As far as we are concerned we make special containers which have got value added advantage and many USP compared to the standard containers. And our containers are mainly primarily used by Indian customers who are into the train loading business. They are called CTs, container train operator. There are 20 companies who have taken license from Indian Railways to run their own container trains. So they have to have their own wagons, they have to have their own containers for the transportation of the domestic cargo.
And our standards are much more liberal in terms of loading in terms of volumetric capacity on road and rail compared to the normal international standards. So we wanted to take advantage of those standards and we have added USP to each and every containers we make from our factory. So if you go for import of those kind of container from China you can beat them at any cost. So that is our strength.
Madhur Rathi
So what would be the realization difference between the value added containers that we manufacture versus a standard commodity container that could be imported from China?
Naresh Kumar
When we have started container manufacturing 2021 import of container for domestic requirement has almost. Almost very negligible. That means that much I can say.
Madhur Rathi
I’m asking about the realization difference that we make on these value added containers versus the imported ones.
Naresh Kumar
Think this is a banana pipe that is coming broader view. All these things are coming from our our figures.
Madhur Rathi
Got it. So what were the container volumes for FY25 and 24 that we sold?
Naresh Kumar
You see we. We did turnover of almost 133 crores from container business and 7 crore was from the foundry business. So if you divide 133 by 2.60 you will get the number of containers.
Madhur Rathi
Got it for.
Naresh Kumar
That’s what you apply that formula, I told you.
Madhur Rathi
What would be the volume but what could be the volumes for these?
Naresh Kumar
For what?
Madhur Rathi
For container. So this 133crore. What would be the amount of container that you sold?
Naresh Kumar
So as I told you divide 33 crore by 2.6 lakh.
Madhur Rathi
Okay, 2.6 lakh. You got it?
Naresh Kumar
Yes.
Madhur Rathi
Okay, got it. Just a final question from Maya. So what would be the revenue potential of these topics that we are planning? The 400 to 500 crore capital that you are planning. So what would be the revenue potential for this and what could be the payback?
Naresh Kumar
Multiply by 10.
Madhur Rathi
And so what would be the payback period that you would expect on this 400 to 500 crores.
Naresh Kumar
Just started the project. We have not yet calculated. So much. Thanks a lot.
operator
Thank you. The next question comes from the line of Saurabh Kumar from scientific investing. Please go ahead.
Saurabh Kumar
Hello sir, so this is on behalf of one question per our fixed asset turnovers looks very lucrative like almost outside 10 crore of aside we are, we have been able to do 140 crore. And just to the last question, to the interim question also you said almost 10 times. So what makes us have this kind of very good fixed asset turnover? Is it the industry normal?
Naresh Kumar
No, no this is not industry norms. Because we do the fair assessment of the capex and we do the very transparent and honest work in this. We don’t siphon off the fund from here to there like other promoters. So we work very honestly on this thing.
Saurabh Kumar
Okay. Okay sir. And between container and wagon in the long term how do you see the revenue ratio? Just a broad idea.
Naresh Kumar
Basically container will be almost 30 to 35%, 60 to 65%. One billion cost is almost 40 lakhs. Okay, okay.
Saurabh Kumar
And two more questions sir. One in terms of market size opportunity what is the total market size opportunity which is relevant available to us?
Naresh Kumar
It is like this sort of. We create the market.
Saurabh Kumar
Okay, okay, okay. And sir, this proposed long term capex again you said like still there is a detailed planning to happen. But broadly given on current run rate out of this 400, 500 CAPEX broadly what percentage will come from internal accruals?
Naresh Kumar
Around maybe 15 to 20%.
Saurabh Kumar
Okay, okay, that’s it from my side sir, wish you all the best. Thank you.
operator
Thank you. The next question comes from the line of Dinesh Kulkarni from Finsight. Please go ahead.
Dinesh Kulkarni
Hello sir, can you hear me? Okay so thank you and really great set of numbers. Congratulations on that. Sir, my question is like as you mentioned we are setting up adding up New capacity maybe across both container as well as wagons. Could you just give us some cost analysis like in terms of say if we come up with this facility now within the next two, three years, will our cost per manufacturing of container, right. Will it remain the same or are you expecting some cost benefits there as well?
Naresh Kumar
Let me tell you, we are giving not only the cost part, we are doing value, very value added services from this particular location.
This particular location, that is number one. Number two is once we make the containers over here and we make the wagons to carry the containers, the person will take their containers on the wagon which we have manufactured for them and the cargo will be available to next door. So instead of taking, basically the biggest advantage will be the empty repositioning cost will become zero and inserts they will earn out of it from the single facility. They are getting the wagons, they are getting the container, they are getting the cargo. So that is number one. Number one.
Number two, if somebody is buying only the wagons from me and he has got his own container, so he can bring the loaded containers in my facility and load on their wagons from the facility itself. Number two, number three, is somebody buying only the containers from me and they have the wagon. So if they want to carry these containers to from X point to Y point, so using rail which is a keeper node, they can transport their container empty or load it from my location to anywhere in the number three. Number four, this particular location is looking to run double stack container trains so they can take advantage of a double stack running of double stack container trains from here.
Number four, we can make a higher height container which cannot go on road but can go on rail. So from here itself they can be loaded on their wagon so that they can move on the rail from one part of another part all over India. So there are many value added services which we are being from this particular location which nobody has thought of.
Dinesh Kulkarni
Yes sir, that, that really sounds great and really know. Thank you for that. Such a great, wonderful explanation. Yeah, so what I understand from your explanation is that there is definitely a great value addition for the customer.
So does it give us an ability to charge a little higher on the, you know, whatever the containers or
Naresh Kumar
actually the market decided at this point of time, I don’t have the soap. How can I say at what rate I will sell my product?
Saurabh Kumar
Okay, my question is like, okay, so whatever we are getting per, you know, revenue per unit right now,
Naresh Kumar
maybe we may charge the same at the market, but through this value addition, next cost may be good value addition for the customer. Okay, sounds great. And you think all of this current setup will be up and running in the next two, three years like at least from the.
Should be running as per my plan. Should be running into eight and nine months from here. This is my best off. Maybe it will take two to three months extra. But hopefully second part of X2 part of 26, 27. This will start giving the turnover. Okay, sounds great. So are you saying that because we are not developing the whole thing we are not making part one and to make it a cover we wanted to just keep on developing it as we get the money and its basic facility will create it. And then whatever we learn just like we have developed our container factory like that only we have developed the basic facilities.
And then whatever we keep on generating from internal generation we keep on investing into the factory. And that’s how we have developed it. We don’t want to make a task much from the day one and then start the work. That was my question, sir. So do you think we have the financial capability right now or we will have to borrow some fund generation. We have to go through some debt or we might have to go through some new joint venture. Okay, so that is still. We are still working on that. We are still working on that.
Dinesh Kulkarni
Okay. So that’s really sounds great. Thank you very much and all the best.
operator
Thank you. The next question comes from the line of Karthik Khandelbal from HEM Securities Ltd. Please go ahead.
Kartik Khandelwal
Yeah, Karthik. Yeah. I wanted to ask that this estimated capex that we have planned for 450 to 500 crores. Have we decided at what portion of debt we may consider to raise among the same.
Naresh Kumar
Let me tell you Mr. Karthik. We have purchased almost. We’ll be purchasing almost 144 acres of land. We have placed orders on almost 80% of our machinery required for our manufacturing. Create the advantage. Till now we have not taken any data. Okay. And now how it will go and we have sounded our banks that at a short notice if you need any help please be ready.
So that is how it is at this point of time. So other thing was that we gave a robot target of 4000 crores of revenue in next 47 to 8 years. Among the same. Can we. Can we assume as of now that what percentage of the same will be from wagons, from containers and from our. You see when I. When I. I have. I want to set up a factory making 8000 wagons. So as I told you that around 40 lakhs is the cost of one wagon at this point of time depends on so many.
So this makes how much? Almost 3200 crore rupees. Can you listen to me? Yes sir, I am listening. I main. Main revenue driver will be the wagon manufacturing and other. Other JVs or other things which we have planned. In fact we started getting filler from MNCS also to set up their shop or this. So it will be a real develop it a big industry part. Okay. And so moving forward, any plans? We talked about the same earlier as well. So any plans about the containers or shipping segment as well or we are okay after the government support, sir.
Okay, got it. Sir.
Kartik Khandelwal
That must be also. Thank you.
operator
Thank you. The next question comes from the line of Bharat Bhushan, an investor. Please go ahead.
Unidentified Participant
Good afternoon, Mr. Varish. Congratulations on your very good set of numbers. But my question I think most part of them has already been answered.
Naresh Kumar
But yeah. I have sir, I have. And still that’s why I’m holding on to it. And my simple question was most of the part, most part of my question has been answered. But still the question is on your expansion plan you said more major part of Europe we have six different major plans. Expansion plans. Out of that how much you will which one you complete in this financial year and which will linger on in the next container part. And the logistic part will be completed by March 26th. Okay, sir. And wagon part will be completed hopefully. Hopefully by maybe July, August 26th.
Right. And when we are planning to start the construction of factory for refrigerated containers. We have already started the construction of the factory. Now in this portion we will make refrigerated container. Normal container or wagons. That is to be decided by. Right.
Kartik Khandelwal
Okay. You don’t need any separate machinery. Right. So most of your all expansion plans will finish. Half of them will finish in the financial year and rest will be in two, three years. I suppose. Yes. Right. Yeah. I think most most of my questions that was the thing I want to ask. Thank you.
Kartik Khandelwal
Thank you very much.
Kartik Khandelwal
And bravo to level to your all extension with the extension plan and hopefully reach that they are completed in time. Yeah, thanks a lot. Thank you.
operator
Thank you. The next question comes from the line of Nikhil Gupta, an investor. Please go ahead.
Unidentified Participant
Hello sir. Hi Nikhil. Goliath. I just wanted to understand about receivables. Like receivables is increased substantially. But as compared to turnover it is not that much increased. But still I want to understand what is the average receivable on like period. Yeah, average will be in the tune of 20 Cr. Okay. So going forward even the turnover will be increased. But our recruitment will be on 26 or 3030 occurrence. Definitely receivable will be increased. Okay. Thank you, sir. Thank you.
operator
Thank you. The next. The next question comes from the line of Ankur Gulati from Genuity Capital. Please go ahead.
Ankur Gulati
Even if somebody wants to carry 10ft container.
Naresh Kumar
Land, acquire refrigerated container.
Ankur Gulati
Okay. Thank you sir.
operator
Thank you. The next question comes from the line of Paramjit Singh, an investor. Please go ahead.
Unidentified Participant
Hello, sir. Congratulations. Just want to check. For your wagon manufacturing as well as your containers your customer set stays the same, right? Whoever is buying containers, they will be buying wagons.
Unidentified Participant
That might be different also. Because somebody may not need the container containers only wagon. So we can supply them the wagon. Somebody may not need the wagons, only containers. So we can build the container. But you’re right, more or less the customer segment will be the same. No? And in addition for the vagance there will be Indian results.
Naresh Kumar
Okay. Okay. So any of your existing customers, have they only. Have they already shown interest in wagons? Or are they also kind of doing some JV with you? For any of these initiatives, people are. Waiting for our facility to come up.
Unidentified Participant
Okay. Okay. Great. Sir, so one more thing. I mean just to confirm. You said this. 10,000 containers additional to 6,000 capacity that we already have, this will come up first, right? Because this is expected to be up by mark this.
Naresh Kumar
This will come up within this financing year. Okay. Let me tell you this thing. For the container manufacturing unit I don’t require approval from anybody. But for the wagon factory to come up I required the approval from the government from minister. So these are the machines, these are the equipment. These kind of sets, these kind of things. Once done then only they will approve it.
Unidentified Participant
And you mentioned in principal approval has already been received, right?
Naresh Kumar
For the logistic part.
Unidentified Participant
Okay.
Naresh Kumar
That is the rail terminal. That is a separate business entity segment. Not entity, segment. And let me tell you, for this particular wagon factory also we need the this terminal. That is a much requirement for that, right?
Unidentified Participant
Yeah. Terminal would be needed for everything, right?
Naresh Kumar
Yes.
Unidentified Participant
Okay.
Naresh Kumar
And background, even for the railway, require a railway line inside the factory at least 800 meters long. Okay.
Unidentified Participant
And for that you already have the approval. When you have started, we have go.
Naresh Kumar
To the approval from from the plan. From the in principal approval. We have submitted our detailed project report. It will take another month time to get that approved. Then we start doing the construction.
Unidentified Participant
Okay. So last year you gave a order book of 80 crores to be done by October. And obviously there were Remaining months. And you ended up doing 140 crores this year you have order book of 110 crores again to be done by October. So can we expect a revenue of 200 crores this year? I mean you. You have been proudly said.
Naresh Kumar
Yes.
Unidentified Participant
So you have the visibility and confidence.
Naresh Kumar
That not an issue. Something else happened. I don’t. Okay.
Unidentified Participant
Okay sir. So last year whatever numbers 133 crore divided by 2.6. So roughly 5,5100 containers were manufactured and sold. So this year you would be able to do much more. So this 10,000 containers and your 6,000 container facilities. These are two different facilities. Right? So what is the distance between thousand.
Naresh Kumar
Is the existence new facility which is in Harana district reward. And this new facility has a new location.
Unidentified Participant
So what is that new location? What is the name of the port near which you have got this land?
Naresh Kumar
We’ll disclose it at right point of time.
Unidentified Participant
Okay. Okay. Okay. That’s fine sir. Okay. That’s it. From my side. Wish you all the best.
Naresh Kumar
Yeah, thanks a lot.
operator
Thank you. We take the next question from the line of Oman from NS analytics advisory. Please go ahead.
Unidentified Participant
Hi. Thanks for the follow up. Sir, we were saying 2400 wagons in F26, right?
Naresh Kumar
No, no, no. I’m saying that much capacity.
Unidentified Participant
Yeah, yeah, yeah, yeah, yeah, yeah. That much capacity will be having for that year. And Ramhor will obviously take time. So have you any number like what kind of percentage of ramp up that we can do in Aber 27th.
Naresh Kumar
So that depends on how. How good the response I am getting for this 2400 capacity. You see, when we started this container facility we were not able to make one container a day. And now we are making almost 20 containers a day. And so this is a process which everybody has to pass through. And speculating for such a distant future is not possible.
Unidentified Participant
No, I was asking this because you mentioned two things. One is you are expecting good growth in agitated seven. Secondly, you also mentioned to one of the participants like our customers are waiting for our product. Right. So that is why I ask like anything.
Naresh Kumar
Yeah. We expect a good kind of order from our customers. But at this point of time I cannot put the numbers to it.
Unidentified Participant
Got it. And like on the container side. So can you put some number like in the terms of market share that somebody has.
Naresh Kumar
Mr. Paramjit has put numbers himself decide. So let us work on those and there will be no.
Unidentified Participant
I’m asking for the market share. Right now we are having in India.
Naresh Kumar
Difficult to tell here. As I told you, we Are the market creator depend upon the market like.
Unidentified Participant
Overall demand in the terms of volume Any idea like. Got it. That’s it from my side sir, all the best for the future. Thank you.
Naresh Kumar
Thanks. Thanks a lot.
operator
Thank you. The next question comes from the line of Kahokhan Sarkar from Deloitte Please go ahead.
Khokan Sarkar
Sir I said first of all congratulations to you and your team doing fantastic. Thanks a lot. Thanks Keep blessing. Yeah sir, few of my question already. Got answered so a couple of question I have sir, last time we were talking about Dubai plan so. Okay, still there are any hope or. Because this time you are not mentioned.
Naresh Kumar
Let me tell you very honestly the containers exim container which we wanted to make the rates have come down drastically in China and Vietnam so at this point of time that project is on hold if we get some opportunity we have already submitted our application to government depending upon their feedback and all these things so that project will have to be seen we have to As I told you this year because of various reasons China wanted to dump anything and everything anywhere so this time I think container market has not been so good but we have been lucky that we got good domestic market and for our special container demand is rising so we are working on that.
Okay sir, so and as you are developing a new greenfield near to port Is there any future plan like you are going to export? If government supports us that that thing we have kept into mind that will be an additional bonus for us because capacity increase for container manufacturing is a not a big challenge for us. We have got lot of land, we have got lot of covered area we are going to continue have a lot of covered area so we have kept that thing into mind if it comes that is really bonus for us but we are not counting main business plan based on that.
Khokan Sarkar
Got it sir and also during the above ceremony you are talking about one example you are giving so our. Prime. Minister visited one country most of all in France. I have not.
Naresh Kumar
Yeah, yeah, yeah. That that opportunity was there the prime minister was sure that’s why I told you There is a good possibility the government might start sport in this government Unless they sport us we cannot compete with the KX companies for manufacturing of standard container.
Khokan Sarkar
Got it sir. That’s clear. Thank you sir and best of luck we have very big thanks a lot. Thanks. Thank you. Thank you. Thank you a lot.
operator
Thank you. The next question comes from the line of Amitabh Chakrabody and investor Please stay.
Unidentified Participant
On the line Am I online?
operator
Yes sir, you are connected. It was the participants line that was on Hold. We’ll move on to the next question from the line of Ashwini an investor. Please go ahead.
Unidentified Participant
Hello. She approximate capacity here. Yes, we have already done. We have taken some amount of land only for the storage purpose. So that’s how we are. We have increased the capacity to some extent.
operator
Thank you. The next question comes from the line of Ganesh Nagar from Bharat Bet research. Please go ahead.
Ganesh Nagarsekar
Major differentiation. What will be our kind of right to win in that market? You are next month. Next month. Okay. Okay. I am a railway person. I know how to operate a terminal which is without customization. Just to get. Basically as I told you we make many kind of containers just to have a utilization kind of thing. That is 2.6 lakh divided by 2.6. That container equivalents will be that much. That’s it. From my side.
operator
Thank you. The next question comes from the line of Pavanesh from Litu Financial services. Please go ahead.
Unidentified Participant
Yeah. Good afternoon. I just have one request to you. Definitely we will share and we have got plan to raise capital. Let me. But you hear me requesting. Thank you.
operator
Thank you. The next question comes from line of Venkat Velupali an investor. Please go ahead. Congratulations sir for good set of numbers.
Unidentified Participant
Thank you for this opportunity. You said talking about KV partners. Did you initiate any dialogue with any any partner?
Naresh Kumar
We are in a very initial state. Let me tell you very initial things and that depends upon various things. Unless something concrete comes out, I cannot use that.
Unidentified Participant
Okay. And last question sir. This 3060 terminal then is the expected time to be opened. And what is the revenue. I mean approximate revenue can be generated from that.
Naresh Kumar
You see this 30 terminal. Although it’s a separate business entity we wanted to make. But this is just a. You can say key mandatory requirements for the wagon factory also. But volume factory will not use it to maybe only 10 to 20% of time. I have to use it for the commercial purpose. I have been getting various fillers to further from the market that they would like to use it once it comes number Dana is very difficult at this point of time. Okay.
Unidentified Participant
So thank you. All the best.
operator
Thank you. We take the next question from the line of Vishal from Smart Horizon Opportunity fund. Please go ahead.
Vishal Vaya
Hello. Hello. Hi. My first question for the revenue and growth rate. What is the name behind the year on year revenue growth of 49%. Can you break down a little bit the high value of a casting or this is a cargo containing.
Naresh Kumar
I. I didn’t get your point.
Vishal Vaya
I’m asking what is the mean drive behind the 49% year on year revenue growth, volume and expansion or a price. D. Can you take down the growth? This is the high end is asking versus the cargo containers.
Naresh Kumar
You. You. You are asking how we are growing so fast or something else. Yeah.
Vishal Vaya
What’s the reason behind can you break down the revenue growth rate from the.
Naresh Kumar
Cast Our strategy is to how to how we can do the innovation can suit our customer. This is not only the innovation of the container. Is the innovation how you take payment from the customer. That can also be innovative.
Vishal Vaya
Okay.
Naresh Kumar
The customer some credit or all that is also one of the innovative things. So we. We apply so many innovative things and then customers are attracted to others.
Vishal Vaya
Okay, next question regarding for the balances and over here has raised significantly what is and how we are going to manage the working capital?
Naresh Kumar
Good question. We will definitely manage our working capital. So maintaining an inventory at a very particular place so that the maximum requirement of our fulfilled visas. I can only say my utilization of working capital. Last year it was. I have not paid even 10 lakhs of interest for a whole year. Yeah, I can only say that. Okay. In time.
Vishal Vaya
Okay, one more question. For the cash flow related for the operating cash flow is significantly lower than the pad. What causes this and how how your guys going to improve?
Naresh Kumar
As I told you we can. We have never as far as last year is concerned before last year is concerned. As you see I don’t know whether the figures are there into the balance sheet or not. Our interest payment towards working capital is not for the full year. May not be 10 lakh rupees. So we are managing very well. We have got almost 14 crores of working capital. We are managing with that very well.
Vishal Vaya
Okay, one more question. Any dividend or buyback plan for us.
Naresh Kumar
Dividend and all will think that at this point of time. Basically we are in the expansion mode. So we need capital at this point of time.
Vishal Vaya
Yeah, you said the expansion. So you have questions over 110 acre of land. So what is the strategy and when going to that the project will be completed and what would be the impact on the top line and the margin of that?
Naresh Kumar
Too early to ask this question. We will come back once the project is at certain stage.
Vishal Vaya
Okay, so probably how many years do it to take for the completion of this project?
Naresh Kumar
We talk with more confidence next year this time.
Vishal Vaya
Okay, fair enough. One more question for the market on the diversification. Your current footprint seems largely in domestic market. Any target for the customers or the customer segment for your private writing in the future upcoming after. Sorry, your Present footprint is currently in the domestic market. Any target for the market or the customer segment. So you are prioritizing for the increasing the market share of your company.
Naresh Kumar
I didn’t get your question. I didn’t get. Sorry.
Vishal Vaya
Pardon. After we.
Naresh Kumar
I think I have answered many times.
Vishal Vaya
Okay. Thank you. Your numbers are listed and I wish you luck.
operator
Thank you. We take the next question from the line of Madhurati from Countercyclical investments. Please go ahead.
Madhur Rathi
Gross margins is 77%.
Naresh Kumar
What our target is. Our targets are 9 to 12%. We wanted to keep those things into mind. Basically our orders are not many time. Maybe three, four months. So three, four months we adjust ourselves. You don’t pass on to the customer value of a very basic container. And we make containers worth 8 to 8 lakhs also. 808.5 lakhs also. 10 lakhs also we made containers. So just for the numbering purpose. Capacity purpose. We divide the 10 lakh by 2.5, 2.6 lakh. So that becomes the equivalent of that particular container.
Madhur Rathi
As a cost differentiation is a technology differentiation.
Naresh Kumar
Thanks mother.
operator
Thank you. We take the next question from the line of Uncle.
Madhur Rathi
Thank you.
operator
Thank you. We take the next question from the line of Dinesh Kulkarni from Finsight. Please go ahead.
Dinesh Kulkarni
Hello sir. Thank you for giving me the opportunity. Very basic, just in case because I new to the industry. Do we have an idea like how many containers India is importing from China or any other countries and look at the replacement. Do we have any information of that sort? It is like this that there are two type of containers we are dealing with. One is the exit contains which are being used for the export and import of carbon. They are predominantly manufactured in China and they. They don’t belong to any country or anything. They just keep on moving from one place to another through sips.
Another container is the domestic containers which as I told you after 2021 there will be very few containers which have been imported by any of the container train operator for the domestic use. I hope this answer your question.
operator
Ladies and gentlemen, we have lost the line of the mammoth of the participant. We move on to the next question from the line of Paramjit Singh and investor. Please go ahead.
Unidentified Participant
Which is already answered. Just one thing. If your order book is 200 crores will you be able to deliver from your current facility which is like 6000 crores.
Naresh Kumar
Not a constraint. As far as containment is concerned. That is not an issue. Issue is there should be consistent orders.
Unidentified Participant
Okay. Okay. So if there’s order or deliver right, sir. Whenever you do any JV request, you will disclose it to the exchange.
Naresh Kumar
Right? Any mandatory. It is mandatory. Okay.
Unidentified Participant
Okay. Thank you, sir. That’s it. From my side. Thank you and good luck.
Naresh Kumar
Thanks a lot.
operator
Thank you. There are no more questions in the queue. You can proceed for your closing comments, sir.
Naresh Kumar
Yeah. Thanks a lot everybody for hearing me out and giving their attention and time. I hope we will be able to utilize your expectations through this venture. And till now, whatever we have been saying we are, we are go by God willing we are able to complete that. And we are up to that mark. And I wish Lord willing we will stay ahead. And whatever we promise, whatever we do, Lord is there, we will do much more good work and generate value and wealth for the country and for the people in and around in India elsewhere.
Thank you a lot. Thank you so much.
operator
Thank you. On behalf of Kalyani Cast Tech Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your line.