Kilburn Engineering Ltd (BSE: 522101) Q3 2026 Earnings Call dated Feb. 11, 2026
Corporate Participants:
Unidentified Speaker
Navin B. Agrawal — Head, Institutional Equities
Ranjit Lala — Managing Director
Sachin Vijayakar — Chief Financial Officer
K. Vijaysanker Kartha — Managing Director, M.E. Energy Pvt. Ltd.
Analysts:
Unidentified Participant
Uzair Lari — Analyst
Priyesh Babariya — Analyst
Presentation:
Navin B. Agrawal — Head, Institutional Equities
Good afternoon ladies and gentlemen and thank you for attending this virtual meeting. I’m pleased to welcome you to Kilburn Engineering Limited’s Q3FY26 earnings webinar. We have with us Mr. Ranjit Lala, Managing Director, Mr. Amritanshu Khetan, Director Mr. Sachin Vijayakar, Chief Financial Officer Mr. K. Vijay Shankar Kata, Managing Director MA Energy Private Limited and Mr. Amol Monga. Hold time Director Monga Strayfield Private Limited. Friends, this virtual meeting is being recorded for compliance reason and during the course of discussion there may be certain forward looking statements. These must be viewed in conjunction with the risk that the company faces.
We’ll have the opening remarks from Mr. Lala followed by Q A session. Thank you. And over to you Mr. Gala.
Ranjit Lala — Managing Director
Thank you, Naveen. Good afternoon to all. We welcome you all to Q3 2026 earnings call and updates on the company and its subsidiaries. Kilburn and its subsidies continue to deliver yet another consistent quarterly performance for Q3. A brief on the financials is as follows. Kilburn had a top line of 105 crores for the quarter Q3 with an operating EBITDA of 25%. This is a year on year growth of 15% on top line and 16% on EBITDA. On a console basis we achieved a top line of 157 crores and EBITDA of 24%. As a group we ended Q3 with a order backlog of 495 crores and we have received orders and LOIs worth 70 crores from the 1st of January.
For the current year we continue to have a healthy inquiry pipeline of 4000 crores plus at a console level indicating a good traction across various sectors. We continue to maintain our target of 50% growth in top line over the last year which comes to around revenue of 625 to 650 crores. The current margin profile looks quite sustainable and we expect to close the year with EBITDA offering 22 to 23%. Furthermore, we have commenced the expansion of Kilburn factory at Saravoli which is expected to complete in next six to eight months. Also we have commenced phase two expansion at ME Energy at Pune.
The third update which I would like to give is we have formed a joint venture company, Kilburn East End Private Limited for offering specialized site and shop fabrication services to EPC companies for various projects and refineries, petrochemicals, steel, chemicals, etc. With this I would hand over back to Naveen.
Questions and Answers:
Navin B. Agrawal
Thank you Mr. Friends. We’ll open the floor for the Q A session. Anyone wishing to ask a question, request you to please raise your hand and we’ll take your question. We’ll take the first question from Sagar Shah. Sagar, please go ahead. Sagar, I’ve enabled your mic. Please please unmute yourself now.
Unidentified Participant
Now I’m audible.
Navin B. Agrawal
Yes.
Unidentified Participant
Yes.
Navin B. Agrawal
Please go ahead.
Unidentified Participant
Yes. Yeah, sure. Sir. First of all many congratulations for excellent set of earnings once again for Kilburn. It has been a phenomenal journey actually since last two years with you sir. Now. Now coming on to the operating performance. Actually my first question was related to our capacities now with regards to Kilburn on a standalone level Ambarnath plant and also ME Energy. So the. The potential to. Right now though we are clocking on on a standalone level approximately revenues of approximately of around 300 crores. Actually on a. On a standalone level I’m. I’m saying actually on a consolidated level, on a Kilbourne level.
So on that front is it safe to assume that are we fully booked out at least at our Ambarnath plant as well as our Saravalli and also regards to MA Energy and, and MA Energy and Manga Stray field. I wanted to know what percentage of the orders actually are you executing on ME Energy’s plant for Kilburn actually and what percentage of the Mainergies orders are being executed in that particular land. So that is. And the. The next question was related to Monga State filter. What is the revenue for Monga State field in the 9 months FY6?
Ranjit Lala
Well Sagar, you know very well that we have always focused on Consol numbers. So we avoid giving the split. But okay, for the benefit, you know, for the. For your benefit I would like to mention that I will give more the numbers which I’m expecting by the end of the year. So when we mentioned about 625 to 650 crores for Kilburn, 95 crores is what is. 90 to 95 crores is what is expected from Monga stray field between 100 to 105 crores is expected from me energy and rest would be from Kilgon. This I’m talking as we see on the 31st of March as of now I think you know this reply should suffice your requirement.
Secondly you mentioned about you know, capacity utilization or whether we are fully booked. Okay. Yes, we are well booked. I would. I would say. And the expansions that we are talking about, we expect both these expansions to get completed in next. Let’s say six to eight months and all this is being done to get to the level of 800 crores plus. In the past we have mentioned that next year we are targeting a top line of 800 crores and subsequently we would like to be a thousand crore company. So all these efforts are being put in that direction.
Unidentified Participant
Yeah. So basically got your point, sir. But means write the kind of orders that you are getting. I can see the order of 58 crore order also that you placed on your corporate announcement. I means more of tea dryers, more of paddle dries. I think you are getting certain orders from. So something like is it safe to assume that right now Kilburn on a standalone level rather than garnering high volume orders, high value orders actually as for rotary dyes. But it is getting some low value orders and focusing on something like you can say smaller products and garnering higher revenue.
Is it safe to assume?
Ranjit Lala
No. So we welcome. You mentioned about tea dry. So tea dry is a very seasonal market and you know it’s typically from November to March. Yeah. So that time do we have a. We do have a spike. We are targeting orders of all values. You know anything from 40 lakhs in three dryers to let’s say 50, 60, 70 crores or 100 crores as well. I mean you have seen that in the past and the effort still continues. In fact I would say for me energy we had got two huge orders around 50 crores each. I don’t have the exact numbers but together they were around 100 crores.
And we are targeting more orders in that range. So it would not be correct to assume that we are targeting low value orders.
Unidentified Speaker
And in the 58 crores 40 crores was for Rotary Dr.
Unidentified Participant
Okay. Okay. Okay. So how actually I saw your export or orders also. So basically how much percentage of the total order book is from Birla Carbon. Sir, can you specify that please?
Ranjit Lala
There are two different things. Export orders we talking about. This year we expect that turnover of around 30% from exports. Okay. In the current financial year how much is for Veri Carbon and Birla Carbon need not be only for export. It could be for the local requirement also. I don’t have the numbers immediately. Maybe. Sachin, do you have the numbers of. No.
Sachin Vijayakar
What only I can say out of our closing order book of Kilvan standalone around 300 crores. Around 17 crores is export related.
Unidentified Participant
Okay. And how much is it from Birla Carbon? Do you have that number? Sir?
Sachin Vijayakar
No sir.
Unidentified Participant
Okay.
Sachin Vijayakar
I’ll take it between various companies. It is not just.
Unidentified Participant
Okay. Okay. Now Is the. I think you got a upgrade from a credit rating company also acute actually in this particular quarter. So right now the cost of funds for ours it’s anything around 11, 11.54%. So can we, can we assume a lower cost of funds in the following quarter sir, due to the credit upgrade in the credit rating?
Sachin Vijayakar
Yeah, definitely. We are close to our lenders, banks based on this rating and they are working on it. So definitely there we expect a reduction from the existing.
Unidentified Participant
Okay, and can you specify about the JV sir, that I think you have just in this particular quarter you have signed a JV with you just mentioned in your opening remarks also but I wanted to understand means how is it different this piping fabrication, erection, structural fabrication and you all these activities from rolling welding, fabrication you have been doing in house. For two years back you had lack of space but now you have the bandwidth also to do in the entire activities in house. Now this subsidiary on on board means what is the game, what is the plan of action? Means are you looking to acquire another land to basically what for these different activities or is it the same level of activities that Kilburn on a sandal level is doing actually right now?
Ranjit Lala
So what we have been doing in the factories is more of building equipments in the factory and supplying it to various customers and sites and assembling them. Now there is a business, there is a business wherein a lot of site services are required and like fabrication, a little bit of manufacturing inside. And we are focusing only on the special specialized activities. And the focus is on erecting static and rotary equipment, pipe spools, a little bit of structural erection. Yeah. For oil and gas, refinery, petrochemicals and chemicals. Such factories, this kind of work is normally offloaded by EPC companies like LNT to smaller players.
And this is a business which we are looking at. And to begin with the. I mean we would like to go one step at a time. So in the first year we expect, which would mean in the next financial year we expect to get an order in the range of 50 crores. And we would like to execute that subsequently. We will see how things move and then we will grow accordingly.
Unidentified Participant
Okay, so these, these activities which you just mentioned, these are, these are not right now being executed by Kilburn, but they have been outsourced to lnt. Actually that user said piping fabrication, structural fabrication and pre election, pre election commissioning support.
Ranjit Lala
Right.
Unidentified Participant
Okay. My last question sir was related to the tax rate. It’s a data keeping question that what exam in this particular quarter also in the last quarter we had a higher tax outgo. Actually we have been paying tax at around 28%. So what is the tax rate that we will have to assume, sir, going forward?
Sachin Vijayakar
27 percentile. 25.
Unidentified Participant
Right. Okay, fine sir, thank you. Thank you so much and all the best. Thank you.
Navin B. Agrawal
Thank you. Shan, we’ll take the next question from Abhijit Mitra. Abhijit, please unmute yourself and go ahead.
Unidentified Participant
Yeah, thanks for taking my question. And you know just going through the last quarter transcript I could see some of the comments from Mr. Lala and Amritangshu also that you know, probably the margin profile around 25, 26% will be sort of sustained through the year, through the end of the year and probably in the medium term also. So the drop in EBITDA margins this quarter, I know it’s a mix of project but I mean how do you look at it? Do you see, you can go Back to that 25, 26% range in the medium term or you feel this is the margin profile to expect.
Ranjit Lala
So to the best of my knowledge, 25, 26% goes for last quarter. But we had mentioned that through the year we will maintain EBITDA margin of 22 to 23%. We have been maintaining that for the last three quarters or at the last two quarters and this quarter. So 25 to 26 happened in last quarter but through the year it would be around 22 to 23% or other. By end of the year it will be 22 to 23%.
Unidentified Participant
Okay, so we should sort of, you know, model around 23% and, and, and sort of, I mean that that is the medium term guidance as well, right? As in beyond the year also.
Ranjit Lala
So beyond the year we have mentioned it will be 20 plus percent. But yes, within the organization we have put a benchmark for 23. But for all our discussions I have said 20 plus percent.
Unidentified Participant
Okay, got it. And in terms of order inflows on a consolidated level, we are looking at a 443crores for the nine months. What kind of order inflows can we sort of expect for, for the year? And I mean with this kind of order inflows do you feel, you know achieving the 800 crores revenue guidance can be a challenge?
Ranjit Lala
No, not really. So we have closed as on 31st December the open order of around 495. But by the end of the year based on the orders that have been received so far, the orders expected, minus the execution that would happen, we would open the order book on 1st of April in the range of 500 crores. 500 plus. It’ll be very difficult for me to give a more accurate number but we can assume that we will open at 500 plus plus whatever comes in the first quarter. Yeah. So that is should. That should help us in navigating into the 800 crore mark. Again, my dear friend, at this point of time we are talking about numbers based on the scenario today. Yeah. So we have set ourselves a target of 800 crores on exponentially.
Unidentified Participant
Got it. Understood. And regarding the follow through orders from. From ocpl, any sort of color on that that you can share?
Ranjit Lala
Well, discussions are on. Yeah. And these. It takes, you know, some time for all these inquiries to culminate into orders but discussions are on. Got it.
Unidentified Participant
Okay, thanks. That’s all from my side. Wish you all the best.
Ranjit Lala
Thank you.
Navin B. Agrawal
Thank you. Friends, anyone wishing to ask a question, request you to please raise your hand so that we can unmute you and take it. Just give me a second. We will take the next question from Uzair. Larry Uzair. Please unmute. Unmute yourself and go ahead.
Uzair Lari
Am I audible?
Navin B. Agrawal
Yes, you are. Yeah.
Uzair Lari
Hi sir, Congrats on good set on numbers. I wanted to ask regarding export orders. So what, what is the EBITDA margin in the export orders? Are there the EBITDA margins higher or is it at par with the domestic orders?
Ranjit Lala
All the export orders which we bag are definitely, you know, on a competitive basis. Not necessarily that vill one, but the margins are by and large with the domestic orders. There can be some cases. We have mentioned in the past that OCP order from Morocco was a high margin order. But it depends from time to time, customer to customer.
Yeah, so we. So it’s very difficult to really say that all export orders have a higher margin.
Uzair Lari
All right. And sir, one last question related to the like 650 crore target for this year. So like in Q4 we should be around 200 crores of revenue if we. Want to target 650 crores. Is it? Yeah.
Ranjit Lala
Right. Right.
Uzair Lari
Okay. Thank you.
Ranjit Lala
So once again, I mean 625 to 650. Let’s see where we. Where we land. Yes, but you’re right, the top line should be in the range of 175 to 200 crores.
Navin B. Agrawal
Thank you so much. Thank you, Zach. Friends, may I request you to please raise your hand and ask your questions rather than posting them on the chat. Or you may just post it on the Q A board. Mr. Lara, may I take a question on the Q and A board.
Ranjit Lala
Yes, please go ahead.
Navin B. Agrawal
It’s from uncle. A few questions. Will we be able to achieve 650 to 700 crores in FY26?
Ranjit Lala
I am more confident on a number between 625 to 650.
Navin B. Agrawal
Second the margin has decreased from just.
Ranjit Lala
To add the 625 to 650 is the number which meets our guidance of 50% growth. Yeah. So this is based on the 50% growth over last year. What guidance we had given. But if. But if we are able to cross 6, 650 cross. We will not stop ourselves. Yeah, please go ahead.
Navin B. Agrawal
The second question. The margin has decreased from 26% to 23% this quarter. What is the reason for this decline? And what margin do we expect for Q in Q4 and FY27?
Ranjit Lala
Consistently we have been mentioning that margins will change from quarter to quarter based on the type of orders being executed. And the guidance that we had provided for the whole year was in the range of 22 to 23%. We stick to that.
Navin B. Agrawal
The last question from Ankur. Do you expect cash flows to improve in FY27?
Ranjit Lala
Sachin, can you take that? Yeah, they will.
Sachin Vijayakar
We expect to improve the cash flow, expect to improve next year with better banking facilities. Enhancement of banking facilities. Definitely that will be increased.
Navin B. Agrawal
There’s some questions in chat, friends. If I miss out your question, request you to either raise your hand or post them in the Q and A. Both. Jose, do you have a follow up question?
Uzair Lari
Yeah. Yeah. One last question.
Navin B. Agrawal
Yeah, please go ahead.
Uzair Lari
Sir. As you said that margins fluctuate a bit depending on the type of orders. We receive on quarter. On quarter. So can you like share some insights like some of the areas where margins are high so that in particular quarter. We like report 26 to 28% of EBITDA margin.
Ranjit Lala
No, sir, it’s very difficult to give such a projection. Yeah. And in the last quarter we had relatively high because we executed the OCP Jessa order for Morocco. A part of it is still being, you know, executed in the current quarter. So this will change. And each order has different margins. You know, it’s very difficult to give a projection as to which quarter it can be high or low. And that’s why we give a, you know, a quite a narrow range. So when I talk about 22 to 23% and we have taken into account all the possible ups and downs and any surprises and all those things.
But I can assure of one thing. At, at any point we try our best to improve our margins. Whether it is through, you know, scaling up of activities, you know, efficiencies in our processes, trying to work out, you know, good prices for the raw material. That is something which we do consistently and that’s where you find these fluctuations. All right, thank you sir.
Navin B. Agrawal
Thank you. Jose Sahaj is asking what should we under what to understand the impact of EU trade deal with the European machinery get cheaper for Indian clients and can it impact our order book?
Ranjit Lala
Right, so I will try to answer this question from both the angles. EU India trade deal and the U S India trade deal because I’m sure somebody would have a question on that. I don’t think Europe is in that position today to offer cheaper equipment. In fact it is the other way around. You know, in fact if they want to increase their capacities they would look at equipment from India and other countries like China, Vietnam, etc. So in a way it’s beneficial for us. Same likewise for us, you know, if they have to import any equipment and all.
So India is very well placed and vis a vis even Kilburn is well placed to supply for the business that we are doing that is drying solutions or heat recovery solutions and radio frequency dryers. So it’s beneficial to us. However, this would take around 12 to 18 months for the real green shoots to be visible on the ground. Because these have to be passed in their respective countries, these trade deals. I think in the EU parliament this has to be passed for the India EU agreement. So by the time we really start seeing the benefits it would be 12 to 18 months from now.
But in these 12 to 18 months a lot of groundwork can be done by companies like Kilgon in terms of tying up with technology partners or looking at potential customers, you know, and you know, trying to have ventures in any form. So we will work on those. Meanwhile.
Navin B. Agrawal
I hope that answers your question. Sahaj, Just take a few of them which have been posted on the chat. Daksh Malhotra has posted. Sir, when you say 800,000 crores for FY 2728, what will be the EBITDA and path margin guidance? Also which division customer segment are we seeing? Faster growth.
Ranjit Lala
Okay, so when we talk about 800 or thousand crores as on date, my figure would be same 20 plus percent. As we go forward we’ll further fine tune and let you know what the numbers look like. I do agree that you know, when you scale up your activities, your margins improve. But at this point of time it would be a little difficult for me to you know, give indicators for the next financial year. So I stick to 20 plus percent now. Which sectors of customers are doing well? I think we are having you know traction across various segments.
So when you look at what are the kind of inquiries we have I can speak from that perspective. We have plenty of inquiries from petrochemicals, chemicals, soda ash, fertilizers, a little bit on nuclear, food processing, metals, recycling. So we are seeing traction on all these fronts.
Navin B. Agrawal
I hope that answers your question. Can we take the next question from. Okay. Abhijit Mitra has a follow up question. Abhin, please go ahead.
Unidentified Participant
Yeah, thanks for taking my question. Just want to understand what. What was the OCF for the first nine months and what’s the incurred CapEx for the first nine months and how much capex do you intend to do for this year?
Sachin Vijayakar
Apex for first nine months was around five.
Unidentified Participant
Sorry, I missed that number.
Sachin Vijayakar
APEX was around five to six crores for the first nine months.
Unidentified Participant
Okay. And what was the operating cash flow?
Ranjit Lala
Apex also you can give those numbers what we are planning for as well as for ME Energy Pune Cash flow.
Sachin Vijayakar
I don’t have the figure in front of me.
Ranjit Lala
No, Capex is saying.
Sachin Vijayakar
You said cash operating cash flow figures. I don’t have it.
Ranjit Lala
Operating cash.
Unidentified Participant
Okay. And yeah. And for the full year what’s the plan in terms of you know planned capex? If you can share the number for the full year.
Ranjit Lala
When we had planned for the full year it was around 25 crores for Kilburn and around 10 to 12 crores for MA Energy. But you know we did not consume it. There was slight delay in getting approvals for the expansion. So for practical reasons you can assume the same would be spilled into the next financial year. Whilst we have started the expansion in both these locations. But the capex would follow in the next financial year. The total capex for both the companies would be around 40 to 45 crores for ME Energy and Kilburn. I also want to mention that we have some capex planned for Monga’s tray field.
We are waiting for you know the necessary inputs before we give you those numbers.
Unidentified Participant
Got it. Got it. 40. 45 crores. Over two years.
Ranjit Lala
No, no. Over 12 months. So let’s say this quarter and next three quarters.
Unidentified Participant
Okay. Got it. Understood. Thanks. That’s all from myself. Thanks.
Navin B. Agrawal
Thanks Abhijit. Okay. There’s a question from Daksh Malhotra on the chat. Sir, as we are seeing a lot of euphoria around nuclear even in our order intake nuclear is a big contributor. Can you talk about what Are we supplying and how is the space looking?
Ranjit Lala
Yeah, so what are we supplying? I can use some information because, you know, there’s only a limited information which we are allowed to give out. We had one order from Nuclear Power Corporation which was for, you know, design, engineering, manufacture and supply of pump room coolers and some vault coolers plus heavy water vapor recovery system. So this was the solution that we are offering them. The second order was from Heavy Water Board which is for supplying of reactors, exchange exchanges, hydrogen pumps and piping and structures and all. I would say it’s more of a EPC kind of a supply for some special processes which have been designed by barc.
What are those processes? We are aware a little bit of it, but I will not be able to speak on that subject. How is the sector doing? We expect a lot more to happen in the coming years. These two orders which we have spoken about, we have been working on them for more than a year now and we are working on a few more, a couple of more inquiries which are quite at an advanced stage. But we expect a lot more to happen in this vertical or in the sector. More so after the trade deals that have happened.
Navin B. Agrawal
Thank you. Mr. Lala. Will Sagar has a follow up question. Sagar, please unmute yourself and go ahead.
Unidentified Participant
Yeah, yeah. First of all, thanks for the opportunity. I just had two follow up questions, sir. On the standalone level for Cuban Engineering, so we have around two plants, Saravali and Abarnath. So in FY27 when you are actually guiding for around more than 600 crores plus of revenue, 700 crores plus of revenue. So I think. So this growth will be largely led by ME Energy. Right. And. And Mongo State field. Right. If I’m not wrong.
Ranjit Lala
No, I think there’s been a growth on all the fronts. I mean if you just look at standalone numbers of Kilburn, you are definitely seeing a growth. And if you look at Tilburn plus me even there, we have seen growth and we expect that by the end of the year, you know, a lot of revenue or top line from me as well.
Unidentified Participant
Sir.
Ranjit Lala
Oh, okay. FY27. So FY27, we expect a biggest growth coming from me. Energy.
Unidentified Participant
Yes, that’s what I was saying, sir. Because yeah, if you’re fully booked out, you have already been large orders being coming from the carbon black industry, also from nuclear and the petrochemicals. So I can hardly see any room for growth on the Kilburn level.
Ranjit Lala
No, no, not really. No, no. Sorry, sorry. I mean, let’s keep the two things separate. The growth of Kelvin will always be there. But in 27 we are seeing a good growth coming from MA Energy. And this is based on the inquiries that we have and these stage of negotiations where we are today. So that’s where I’m saying that the maximum growth will come from energy and.
Unidentified Participant
From the cement industry. Are you expecting some orders?
Ranjit Lala
Yes, cement from steel, from power, from a lot of areas we expecting. Actually Mr. Karta is also online. He can, you know. Yes, throw some light on that. Mr. Kartha, can you. Can you, you know tell something about. Muted. Mr. Karta, you are mute.
K. Vijaysanker Kartha
Yeah, sorry. So temp energy, we’ve been able to source some more get some more orders from the cement industry after the first breakthrough with SRI Cements. And we have got during this year large orders in. For the Ferrule industry. And that is leading to more number of inquiries in metals and steel industry. And next year looks pretty good for us. And we are gearing up with a major expansion of the plant whereby the capacity in terms of space under crane for production going up almost close to 50%. So we’ll be equipped with almost double the capacity for catering to this sporting growth.
So things are looking ahead and it’s good times for us coming ahead.
Unidentified Participant
Okay? Okay. Sure sir. And my last question sir was to Sachin sir. There was a conversion of certain around 350000 warrants in this quarter also. Yeah. Now actually what I have forecasted that of the total equity share capital after the conversion of the warrants to even the public shareholders would be around 52.6 crores. Am I correct?
Sachin Vijayakar
Capital 5 cr 62 lakhs.
Unidentified Participant
Yes. File. Yes. Correct. So it comes up to 52 crore 60 lakhs is the share capital correct?
Sachin Vijayakar
Correct.
Unidentified Participant
Okay. Thank you sir. All the best.
Navin B. Agrawal
Thank you sir. Friends, anyone with a question requested you please raise your hand. We’ll unmute you and take your question. Friends, anyone with a question. You have a question, Please unmute yourself and go ahead. Yes you are. Please go ahead.
Unidentified Participant
Thank you. Thank you for the opportunity. So Lala, I’m just. Just from what I gather and we sounded very bullish in the Q2 of this Fi. I think this call has been hearing. I think we sound a little bit subdued. So do you face. Are you seeing any major challenges? Because you know even. Even if you look at the top line obviously you always guided 50 growth and we probably hit somewhere around maybe 620, 630 the number you’re giving. But on the business perspective are you Seeing some headwinds that you’re facing. Maybe not headwind, but some challenge that we’re facing up in this quarter. And you feel that should total it down maybe to the next year as well?
Ranjit Lala
Well, first of all, I don’t know what makes you feel that we are subdued. Is it my voice that is subdued or. No?
Unidentified Participant
No. So let me correct myself. So I meant that, you know, I’m. Used to, since I’ve been following the. Company the last two years, I’ve used to, you know, seeing the feel that I got is more bullish. I think this time we were more, I would say restraint is not subdued. So I thought maybe the industry challenges.
Ranjit Lala
We’ve always mentioned that, you know, in the following Years from now, that is 27 and 28, we have, you know, projected a CAGR of 25%. As of now. I don’t see any challenge over there. And if you look at, you know, where we have reached so far, like from last two years, whatever we have projected, by and large, we have been closer to that number. So when we talk about 25 from here on, so 625. 6, 650 crores. Another 25 would be 800 crores and then another 25% would be thousand crores. So those numbers we are still maintaining.
See, you need to have some benchmark or some numbers in your mind when the organization is moving ahead. There can always be some plus minus here and there. Are we confident? We believe that we are going to achieve that number. Okay. And this is all because of the kind of inquiry pipeline we have, the traction that we have seen, you know, in, in, in multiple verticals. A couple of months back people had a question mark on, you know, me Energy’s performance. I mean, now we are saying that there will be the fastest growth ones in the whole group. So the efforts are being put, the opportunities are being uncovered and I think we are placed where we are supposed to be.
Unidentified Participant
Okay.
Ranjit Lala
And I’m not sounding so good now. No, no, you’re not. I was just trying to.
Unidentified Participant
I’m just used to, you know, it’s.
Unidentified Speaker
Very, it’s very difficult to give a range for a growing company. I think we must maintain that if we are able to achieve the 60, 625 to 650 crore range, it’s a 50% growth, albeit with 20% of that coming through an acquisition. Going forward, if the company can maintain a 20 to 25% range, I think that itself will be a great achievement for Kilburn Base because the Base itself is becoming larger.
Unidentified Participant
Yeah, I understand that and if, if I’m. I’m asking because I’m used to the benchmark that you have said so please pardon me if I’m maybe trying to sound a more optimistic. I think it’s all the credit to the Kilvan and your team that I’m. Trying to do that
Ranjit Lala
I think myself, you know by setting high benchmarks. Yeah, please go ahead.
Unidentified Participant
So. Yeah so the second question was the order book that we have 495 closing order book that we have for plus.
Ranjit Lala
70 that we have received for 70.
Unidentified Participant
So what is the so 305. 306 is skilled one. Do we do we give the split for me, Emmy and Mongo and that’s it. The remaining.
Ranjit Lala
I’ll try to see if I can give you section. Can you give us.
Sachin Vijayakar
170 and 20? Sorry, what is Bonga sir, is 2022 0.
Unidentified Participant
Okay. Last question. Are we. I don’t know if our companies anywhere associated with these water discharge and ZLD kind of projects because I, I feel that’s what’s been in demand right now or zero discharge kind of thing. Are we associated with that in any which ways?
Ranjit Lala
Yeah. So. Both ME Energy and Kilwarn are working out on opportunities in the sewage treatment plans. STPs. Yeah, both municipal and private. Not necessarily ZLDs. Because if it’s a municipal plan it cannot be a zld. You can only treat this sewage and you know, release it. So we are working on a couple of opportunities and we are also looking at a couple of technologies where we can tie up so that process is on. Maybe Mr. Karta can dwell more on that. Sir, can you give some more information sir?
K. Vijaysanker Kartha
Yes Amy. Energy is had been working in this field of sewage treatment for various through various CPC contractors for all these municipal bodies. Wherever large sea wage treatment plant comes and it is by way of supplying the required thermal equipment for the processing of sewage and also the biogas based heating systems and engine wasted recovery systems. So this is going on even in this quarter. We have booked around 5, 6 crores for the order in this space and the plants in India are going up in size. Earlier it used to be 100 TP, 100 TPDs and things like this under the KLPDs and all that.
Now it is going to be 400500 and we expect that in the coming next years the order order intake will be much higher values and more in numbers.
Unidentified Participant
Okay. Okay, thank you sir. Thank you for answering the question.
Navin B. Agrawal
Thank you, thank you. We’ll take the next question from Rabindra Nayak. Rabindra, please go ahead. Rabindra, please unmute yourself and go ahead. Some issue out there. We’ll take the question from Karthik. Karthik, please go ahead.
Unidentified Participant
Yeah, I hope I’m audible.
Navin B. Agrawal
Yes, you are.
Unidentified Participant
Yeah, yeah, yeah. Thank you. Congratulations to the whole team for a good performance. Most of my questions have been answered. So one question on the event participation Chemtech World Expo event that you mentioned. In the investor deck. So if you can just speak a little bit as to have we participated in it in the past or was it the first time and maybe some color on the response that we received there and the nature of inquiries received and so on.
Ranjit Lala
I can partially answer that question. So this is not the first time we are participating in chemtech. We had done it for last two years as well. Yeah, but this was at. At a much bigger scale in terms of response. I would say it was. The response was overall modest to Chemtank as an exhibition. So it’s got nothing to do with Kilvan or anybody else. So I mean that’s all I can say about the inquiries what we have generated. Honestly, I don’t have the information so far because it just got completed last week and my colleagues are working out the details.
So that is one part I’m not able to answer.
Unidentified Participant
Okay. Okay, sure. Thank you sir.
Navin B. Agrawal
Thank you. Rabindra, please unmute yourself and go ahead. It’s very. Can you speak a little louder please?
Unidentified Participant
Hello?
Navin B. Agrawal
Yes.
Unidentified Participant
Yeah, yeah. Am I audible?
Navin B. Agrawal
Yes, yes, yeah.
Unidentified Participant
Thank you sir. Thank you for the opportunity. And can you please give a sense on this, you know, standalone number sector wise? You know the. Your exposure in the nuclear. I joined little late. If you have already dealt upon this then okay, but you know, can you please repeat it if at all you have not done that, please. Thank you. Then I will take up some questions.
Ranjit Lala
Rabindra, I would not have the numbers sector wise for standalone but what I can recommend is that you can refer. To. The presentation which is in the public domain. That will give a fair idea as to what is the overall breakup of the orders. This is on page seven of the presentation.
Unidentified Participant
Yeah, I understand. Can you please give the inquiry label on the sector wise and if anything can get a sense on how the things are moving on.
Ranjit Lala
See I can name the sectors where we have inquiries. I will not be able to give the split. So I mentioned earlier that we have a number of inquiries from petrochemicals, chemicals, soda ash, fertilizers, Metals, nuclear, we have a couple of them. Then we have recycling and I think we have also on the offshore platforms. Yeah. So these are the, the, the, the verticals where we are seeing a lot of inquiries. The split, I would not know. It’s very difficult to give that.
Unidentified Participant
Okay, fine. So otherwise, you know, if you seek what is the inquiry level right now? You know, what are the total inquiry level of order per entire, you know, consolidated basis you are working with and what it was in last quarter. So can you get a sense on that?
Ranjit Lala
So I think in the last two to three quarters we have been having an inquiry pipeline anywhere between 3, 800 to 4,000 crores. Okay. It keeps fluctuating from time to time because new inquiries are flowing in, conversions are happening. There are always some, you know, orders won, orders lost. Yeah. But on an average through the year, we had a good inquiry pipeline of 4000 crores at a concern level.
Unidentified Participant
Okay, so at this moment you are working at a 4000 crores of order pipeline, right? Yeah.
Unidentified Participant
Yeah.
Unidentified Participant
Okay. Okay. And, and sir, what is the, you know, you mentioned it is you. I believe that you are giving this indication for the not consolid, fully consolidated. Can you give it to from the Mainrg and Bonga for separately?
Ranjit Lala
Well, we prefer not to, but for your benefit, I’ll just give a broad breakup. If we are talking about 650 crores, I would expect somewhere between 90 and 100 crores. From somewhere between 100 to 105, 110 from me energy and this from Kilburn. But this is only an indicative number.
Unidentified Participant
Yeah, okay.
Ranjit Lala
But we prefer not to give any split at this point of time.
Unidentified Participant
Okay. Okay, fine. Sir, regarding this, you know, you have mentioned that you will be working with a 625 to 650 crores. So what would be the standalone number for if I expected standard number for FR26 and for the other two subsidiaries.
Ranjit Lala
And I just answered that question. I just answered that question.
Unidentified Participant
Okay. So split wise, you cannot give the subsidiary wise anyway standalone, what is the expectation? Sir.
Ranjit Lala
450 to 500. Okay.
Unidentified Participant
Okay. Okay, fine. And sir, regarding my question to what is the total, you know, cash book right now, cash in hand of the company?
Sachin Vijayakar
The 30th of December was around 30 crores.
Unidentified Participant
Okay, 30 crores.
Sachin Vijayakar
That includes our margin, everything, whatever.
Unidentified Participant
13130. Okay. And sir, what is the, you know, borrowing right now by nine month.
Sachin Vijayakar
Ranging. From nine and a half to ten and a half.
Unidentified Participant
No, no, no, I’m not asking cost. Sir, what is the total gross borrowing?
Sachin Vijayakar
Borrowing is around 100 crores plus including what we have borrowed from our subsidiary.
Unidentified Participant
Okay. And sir, you know equity there is supposed to be around 995 crores of equity. Warrants to be, you know, money to come. So whether it is already received or.
Sachin Vijayakar
It is by March, May 26.
Unidentified Participant
Okay. May 26.
Sachin Vijayakar
Balance will come on May 26.
Unidentified Participant
Okay. So 49 cr has already come. The 95 crores is expected by May 9. May 26. Hello.
Sachin Vijayakar
Yes, around 138 air clos is yet to come in 132.
Unidentified Participant
Okay. So out of that you mentioned the total capital expenditure this year would be around standalone to 20 crores and other subsidiaries. Sir.
Sachin Vijayakar
We already mentioned between the two companies it will be around 40 crores of capital expenditure over the next 12 months.
Unidentified Participant
Okay. Okay. Okay. Okay. Okay. Thank you. And I will come back and thank you.
Navin B. Agrawal
Thank you. Ravindra. We’ll take the next question from Priyash Babaria. Priya, please go ahead. Please unmute yourself and go ahead and ask your question. Yeah.
Priyesh Babariya
Hi sir, good afternoon. Am I audible?
Navin B. Agrawal
Yes, you are.
Priyesh Babariya
Yeah. So I just wanted to understand from the perspective of order, order pipeline since it is, it is kind of flat over let’s say last two to three quarters. First on how do you actually, you know, consider some orders as order pipeline and how wide it has not been actually growing considering the time that we are actually you know, targeting at. And then the next question is with respect to let’s say whatever the expansion that we are doing would. Would that capex would be sufficient to actually generate the revenue of thousand crore.
Ranjit Lala
So the question number one, see you don’t see much fluctuation quarter on quarter in the inquiries pipeline.
You’re converting some. There are new opportunities getting you know, uncovered or you know, explored. So I just mentioned that you know we have had inquiries between 3,800 to 4,000 crore and they have been consistent. So I would not say they are flat. They are consistent. Okay. Definitely as we move forward these will grow. If you look at the last two, three years we were somewhere around 600 to 800 once upon a time. From there we have grown to 4,000. So I would request you to look at a broader period than just quarter on quarter in the last three quarters.
That’s one. Secondly you mentioned about the expansion. This expansion is being done so that we cross the thousand crore mark. It is now being well planned in advanced. So yes, with this expansion will be touched thousand crores. With all the opportunities in place. We will touch thousand.
Priyesh Babariya
Sure. Thank you so much.
Navin B. Agrawal
Thank you p. A couple of follow up questions. Tejas, do you have a follow up question?
Unidentified Participant
No, no, I haven’t raised my hand.
Navin B. Agrawal
Okay. Abhijit, do you have a follow up question?
Unidentified Participant
Yeah, I, I just wanted to sort of clarify, you know, get a bit more clarification on the margin front. So if we look at the gross margins both at standalone as well as in, in Consol, so you know, essentially the cost of raw mat plus contracting plus change of inventory and others, so we don’t see much of a margin dip there. So the other expenses which have increased significantly, which is drawing the margins down. So if you can help us understand, you know, the nature of the costs that are accruing here and you know, probably that will help us understand this delta and margins a bit better.
Thanks.
Sachin Vijayakar
The other expenses keep on fluctuating. Other expenses include expenses like freight, freight and forwarding, professional fees. Then our employee cost also if you see. So that is where our other expenses basically also includes a provision towards expected credit loss which keeps on fluctuating depending on the increase or decrease in the debtors level as well as the level of foreign build revenue. So that keeps on varying.
Unidentified Participant
So essentially from say 18 crores in Q1 to 24 crores in Q2 to 29 crores in Q3. I mean this delta is there a couple of line items which can explain this delta in terms of either ECL or probably some specific cost related to.
Sachin Vijayakar
Executions of some last two quarters we have had very high exports. So where the freight cost has been substantial, so that cost has increased. The other expenses, so there are various other types of expenses which keep on incurring.
Unidentified Participant
Okay. And my, my second question was that given the, the, the inflation in raw materials that we have seen say over the past, you know, 2, 3/4. So how are you sort of, you know. Yeah. How are you sort of, you know, creating contingencies for that?
Ranjit Lala
Yeah. So typically whenever we are negotiating any of our orders with the customers, we are aware of what are the raw materials did at that point of time. Okay. And if we receive an LOI or a purchase order, typically it’s the LOI, we immediately block 80% of our raw material with our vendors. So it’s an immediate, you know, back to back arrangement on the rest. 20% is easy to manage and don’t, we don’t find any challenges. This tracing of order or blocking raw material slots is done within 72 hours. So there we don’t see any fluctuation.
That’s how we have been mitigating this for the last two years. Got it?
Unidentified Participant
Understood. Understood. So you don’t expect to sort of, I mean you, you. This margin profile can be maintained irrespective of the raw material changes you feel, at least for now.
Ranjit Lala
The whole fluctuation that you see, maybe 1 to 2%, quarter on quarter, maybe raw material may be contributing to it. It’s very difficult to say what, what are the various contrib computers. The point I’m trying to make is that 80% of it is, you know, very well mitigated. And being in project business, we do some projection as to. There could be some fluctuations here and there. There could be other cost overruns. Okay. There could be some unexpected delays, there could be some unexpected challenges. So all these together contribute to that fluctuation, which is not very big, I feel.
Unidentified Participant
Got it. Got it. So for example, you know, if I look at your past annual report, I think contract assets less contract liability is a significant part of your working capital cycle. I could see in 25, it’s almost 100, 607 days. So on that part which has, you know, work has been done but you know, probably billing has not been made or payment has not been received on those particular type of, you know, situations. If the raw material prices increase, how do you sort of, I mean, does that get passed on easily or there are clauses before where you sort of, you know.
Ranjit Lala
Yeah. So there is no cost because these, all these orders are on a fixed rate basis. Now whatever fluctuations you are seeing, that’s the nature of business. We operate on a PoC basis. And when you say PoC basis, the raw material is already into the factory. It is just that it is under some stage of fabrication. Okay. Now since the overall top line is growing, obviously this impacts the overall work in progress.
Unidentified Participant
Understood? Understood. Got it, Got it. Great. Great. Thanks. That clarifies. Thanks. That’s all.
Navin B. Agrawal
Thank you. Thank you. Friends, in case there are any unanswered questions. Dinesh, we can take your question but please limit yourself to just one because we’ve run out of time. Rabindra, please share your follow up question with me on mail. I’ll take it up with the management. Dinesh, please go ahead.
Unidentified Participant
Hello sir. Am I audible? Yes, yes.
Ranjit Lala
Thank you.
Unidentified Participant
Thank you very much for my question. And really great set of numbers. So my question is like.
Ranjit Lala
Because normally they among the first guys to ask the question. What? I don’t know why you got delayed. Okay. No, I just took thought.
Ranjit Lala
Okay.
Unidentified Participant
Let’s give other some opportunity as well.
Ranjit Lala
Right? Go ahead.
Unidentified Participant
Yeah. Sir, my question is. I see we are now catering to different industries, a lot of them across geographies. Any plans or chances that we can. Get into A N D as well, Aerospace and Defense or to a large extent.
Ranjit Lala
The reason it would be on my wish list. I don’t know how far it is as of now. I’m not. I mean I’m not seeing any opportunities for us. We are too occupied with what we are doing. But yeah, maybe someday. Sure, we look forward to that as well.
Unidentified Participant
Thank you. That’s it from my end. Thank you. Thank you.
Navin B. Agrawal
Yeah, thank you, Dinesh. Friends, as I mentioned, we’ve run out of time. So in case there are any unanswered or follow up questions, please send them to us on mail. We’ll forward them to the management and revert to you. I’d now like to hand over the webinar to Mr. Lala for his closing remarks.
Ranjit Lala
Yeah, thank you. Well, just to summarize, what I can say is that as a team we believe that the target that we have set both for the top line and EBITDA margins, you know, we should be able to achieve it. The CAGR of 25% for next two years and the EBITDA of 20 plus percent. That also seems to be very much possible. If there’s any change or you know, anything unforeseen, we will definitely keep you posted. Both our expansion at Saravalli and Pune and maybe in future at Wonga’s Ray Field, it should help us in improving our or growing our top line.
I should say. We are constantly evaluating any opportunities for inorganic growth as well. And yeah, so that’s all from my end. I think I can just sum it up in these few statements. And thank you so much for being on this call.
Sachin Vijayakar
Thank you.
Navin B. Agrawal
Thank you very much on behalf of all of us at SKP. Thank you very much, Mr. Lala, Mr. Kaitan, Mr. Vijayka and Mr. Monga and Mr. Karta. But for your time and we look forward to hosting you again for the next quarterly call. Thank you very much everybody and have a wonderful day.
K. Vijaysanker Kartha
Thank you very much. Thank you.