Kirloskar Pneumatic Company Ltd (BSE: 505283) Q3 2026 Earnings Call dated Jan. 23, 2026
Corporate Participants:
K. Srinivasan — Managing Director
Ramesh Birajdar — Chief Financial Officer
Analysts:
Unidentified Participant
Amit Shah — Analyst
Balasubramanian A — Analyst
Sameer Parkar — Analyst
Niraj Mansingka — Analyst
Khush Nahar — Analyst
Ajinkya Jadhav — Analyst
Nipun Sharma — Analyst
Sahil Sanghvi — Analyst
Manish Goyal — Analyst
Sourabh Arya — Analyst
Kashyap Javeri — Analyst
Presentation:
operator
Ladies and gentlemen, Good day and welcome to Kirloskar Pneumatic Co. Ltd. Q1FY26 earnings conference call hosted by Antique Stock Broking Ltd. As a reminder, all participants line will be in listen only mode. And there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing start then zero on your touchstone phone. Please note that this conference has been recorded. I now hand over the conference to Mr. Amit Shah from Antique Stock Broking Ltd. Thank you. And over to you sir.
Amit Shah — Analyst
Thank you, Pari. Good evening everyone. On behalf of Antique Stockbroking Ltd. I welcome you all to 3QFY26 earnings call of Tirluskar Pneumatic Co. Ltd. To discuss the results. We have the senior management team of the company represented by Mr. Keshe Srinivasan, Managing Director of the company and Mr. Ramesh Bhiraj Dar, CFO of the company. I will hand over the call to Mr. Keshe Srinivasan for his opening remarks post which we can open the floor for Q and A. Over to you sir.
K. Srinivasan — Managing Director
Thank you, Amit. Good evening to you all. Let me start by wishing you all a very happy New Year. May the New Year bring peace, prosperity and a lot of happiness all around. Thank you for joining this call. Today I have with me Mr. Ramesh Virasda, the Chief Financial Officer and Mr. Jeeten Rishah, the Company Secretary. Before proceeding with the business updates I would request Jitendra, our company secretary to read out the disclaimer statement please. Jitendra. Yes. Thank you sir. Good evening to all and wish you Happy New Year. The presentation uploaded on the website of the company and discussion on the financial results during the earnings call may contain statements relating to future business developments and economic performance that could constitute forward looking statements.
While these forward looking statements represent the company’s judgments and future expectations. A number of factors could cause actual developments and results to differ materially from expectations. The company undertakes no obligation to publicly revise any forward looking statements to reflect future events or circumstances. Further, investors are requested to exercise their own judgment in assessing various risks associated with the company. And also the effectiveness of the measures which taken by the company in tackling them as indicated during the discussions. Thank you. Thank you, Jeetendra. Let me now proceed with the business updates. Q3, as always is a short quarter.
We had a solid order bank for execution and the plants were running flat to catch up on our sales target. While we Internally met most of our manufacturing targets. We could not get this to translate into sales as some of the larger packages were not cleared for dispatch. This meant a lower sales and a higher inventory. The customers have promised to lift these packages in Q4 and we are in active discussion with them as we speak and hopefully they should all go by February. Order booking picked up as on 1st January 26th we have an order on hand of rupees 1939 crore which is about 60 crores higher than the same period last year.
But there is one big difference. Last year we had nearly 600 crores of large package orders in this. This year however we have no large package orders in the 1939 crore. This would mean that the sales next year quarter on quarter will be far smoother than we ever had. Sales YTD was rupees 1054 crore as again 1046 pretty much flat almost about 2% higher with the packages ready for shipment we expect to close the year with the sales between 1800-1850 crore. Nearly double digit growth. YTD PBT was 172 crore is nearly the same as last year.
About 175 PBT for the year should end at least between 20 to 25% higher than the previous year. Order inflow has picked up and will certainly support strong growth next year. We continue to create new IPs a recognition of this is the fact that KPCL was awarded as one of the top 30 IP driven corporates in India by CII along with large industries. As on 31122025 we have filed 106 IPs and a significant number of them have also been taken up for commercialization. The net working Capital was at 276 crore. This is lower than the 288 crore in the same period last year.
This is behind the back of strong receivable management and significant advances from the customers. Inventories as I mentioned is still a challenge and we hope this will translate into sales during the next month. Capex spent was 54 crore. We expect a total capex spend of about 90 crores for the year. Free cash generation from operations YTD F26 was 45 crores. This is after the CAPEX and the dividend. Let’s now discuss the result of our product lines. The air compressor business had a steady quarter both in new order intake and in sales. The Tescaplipoca centrifugal compressor continued to shine.
We have invested in a couple of new CNC machines from Japan and Germany to double the capacity in this line to meet the growing demands. The additional capacity will be available from Q1 next year. Refrigeration Compressors and Systems the refrigeration compression segment completed the manufacture of the large projects during the quarter. They also commissioned two Zephyrus plants as a technology demonstrator and these plants have been commissioned within our plant to see their performance. Learnings will be used to fine tune the product for bulk manufacture under the PLI program. We expect to have this clearance during this quarter.
Order intake from cold chains, ice plants, dairies et cetera continued to be strong. The Churni package sales has picked up and it has stabilized across various application areas. Sales of the Tai Chi semi hermetic compressor has commenced and is scaling up the process gas compression system. The oil and gas sector seems to be finally getting out of a state of somnolence. We now see some movement in terms of order finalization. As you know the whole of last year there’s practically no big orders being finalized in this space. The global uncertainty had impacted this seriously. However, finalizations are slowly picking up not only in packages but also in the CNG package orders as well as in the boosters.
The installation as of now is the lowest in the last five years. We hope to see something better happening going forward. The silver lining in this space has been the significant activity level in the MENA region for the CNG packages and we hope to benefit from this. We have already installed a couple of orders in this space. We have also picked up couple of orders for the hydrogen and biogas space and we expect to complete execution of this in the Q1. The O and M business continues to do well with a growing install base. Alberta is lower than planned but overall this segment will remain the process.
Gas segment will remain flat for the year. Export order booking was on plan. We should be doing a sale of about 140 crore this year compared to 124 crore in the previous year. Most of the exports have been for processed gas business and a significant part of it is in the MENA region. Outlook F26 the global economy is in a precarious state and makes planning exercise a challenging one. We expect to close the year with the sales of about 1800-1850 crore and the PBT of about 345 to 360 crore. A growth of about 12 to 14% on the top line and about 20% plus on the bottom line.
While this is below our run rate of the last five years, we expect that we will get back to our targeted growth rate of 20% on the top line and an EBIT margin of 20% going forward. KPC Youth focus on building sustainable competitive advantage in our offerings based on strong value. Chain integration in house manufacture driven by unique IPs and a sharp focus on targeted markets will ensure the predictable and profitable growth path even with choppy market conditions. A committed and highly engaged workforce is a bedrock on which our growth aspirations are built. This was once again reinforced by our winning the Golden Peacock Award for HR excellence during 2025.
I would now request Ramesh Derazda as CFO to take you through the financials. Ramesh yeah, thank you.
Ramesh Birajdar — Chief Financial Officer
Good evening and wishing you a very happy new year. Q3 FY26 financial results have been officially released on the DSE and NSC website following our recent board meeting. For your convenience, we have also posted a detailed investor presentation on the company’s website which highlights the current performance trends and key business updates. To assist those who may not have had the opportunity to view results, I am sharing summary of Q3FY26 outcomes Sales for the Q3FY26 were Rupees 403.5 crore against Rupees 340 crore of Q3FY25. Sales for the Q3 also showed a growth by 18.5% over previous year’s Q3FY25FY25 other income for nine months improved by 28% to Rupees 21.1 crore compared to Rupees 16.5 crore in the previous year.
Total income YTD ended December 25 was at Rupees 1074.7 crore compared to Rupees 1 0.62.5 crore in the previous year. The raw material to sales ratio for the Q3FY26 was better by 3.7% compared to Q3FY25. In terms of percentage, it was 48.1% in Q3FY26 against 51.80 in Q3FY25. However, YTD percentage of raw material to sales has improved by 1.4% in nine months of FY26 due to better product mix, selection of the orders and improvement in service business margins. Staff cost I.e. employee related expenses stands at 50 crore in Q3FY26 I.e. 13.7% of total income against Rupees 44 crore in Q3FY25 I.e.
12.40% of total income. This increase reflects annual increments commencement of operations at our Nasheed forging plant and new foundry at Nasheed. Additional earnings for new products at our Sassad plant Company has maintained the status as a debt free company and we the company still has net Cash position of Rupees 395 crore as on 1st January 2026. Depreciation for the both 9 months period for the current year and the previous year is almost same. Rupees 22.80 crore in nine months of FY26 against Rupees 22 crore in the nine months of previous year. Other expenses are mix of fixed and variable cost and are at 212 crore in nine months of FY26 against rupees 202.80 crore in the previous year.
Increase in these expenses are on account of traveling, enhanced level of service business and expanding activities in our NASIQ as well as in Sasor plant. The year to date performance for the first nine months of the current year shows EBITDA margin at the same level reaching 18.2% of the total income to rupees 196 crore in FY26 compared to 18.6% of total income to rupees 198 crore in the previous year. In the ongoing fiscal year year to year profit before tax YTD PBT has reached rupees 172.7 crore constituting 16.1% of total income against 16.6 to rupees 175.9 crore in FY25.
Net profit after tax for the initial nine months of current fiscal year is rupees 114.5 crore that is 10.7% of total income in comparison to the previous year 130.4 crore that is 12.3% of total income. The company has issued 42,200 equity shares during the period ending on 12-31-25 under its employee stock option program while 93,600 acute share issued in the previous year during the same period. As a result, the paid up share capital was increased marginally year to date. Earning per share for the current year is rupees 17.63 compared to rupees 20.12 in the previous fiscal year.
Exceptional term in the Income Statement the implementation of new Labor Code which become effective on November 21, 2025. Based on our current assessment, the estimated gratuity provision has increased by Rs. 18.3 crore. The amount is an estimate and may vary by end of FY26. We are currently awarding clearer guidance and further regulatory directions to finalize the specific requirement and impact announced year ending reporting. In line with our dividend policy, the company, the board of directors has approved an interim dividend at the rate of 175% on the face value of rupees 2 per share. That is rupees 3 rupees 50% per share dividend to be paid as per the regular practice.
With about 92% of the revenue coming from the completion segment, it remains the only reportable segment. The segment earned a profit at the rate of 21.6% in the current quarter. While in the previous year it was 21.80. The competition segment is consistently sustaining within the range of 18 to 20%. As of 01-01-2026, the company holds an order book of or rupees 1,939 crore marking at 19% growth compared to 1,624 crore at the beginning of the year. Segment asset experienced a rupees fifty crore increase compared to the previous year primarily due to increase in inventory. In order to arrive at the capital employed for the segment, current liabilities were reduced.
As you are aware that company acquired system and component India Private Limited situated at village Padgoa near Murbad, Maharashtra. Comparable details for the consolidated business will be provided after completion of one full reporting cycle. Now this forum is open for the questions from esteemed investors.
Questions and Answers:
operator
Thank you very much. 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, remove yourself from the question queue. You may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of. Bala Subramanian from Aryan Capital. Please go ahead.
Balasubramanian A
Good evening, sir. Thank you so much for the opportunities, sir. Commercial refrigeration side especially across AC systems. The market size nearly 5000 crore for commercial chilled water segment. I think we have a patented zero EWB refrigerant technology. How it is differ from standard refrigerants used by Voltas or Bluestar. How do you look at in this market? What kind of market share we are targeting, sir?
K. Srinivasan
Okay, thanks for your question. See, I will explain our Zephyrus concept. Zephyrus uses ammonia as a refrigerant. As you all know, there are only two natural refrigerant which has got zero ozone depletion potential and zero carbon warming. Global warming so we are using ammonia as a refrigerant. This is quite different from what most other companies use. Most other companies use refrigerants like R134A, R32A, etc. All of them have even the best one. The newest one is R32A which has got zero ozone depletion potential. But its global warming potential is 765 and above. So the earlier ones are all 2600 and above.
So these are all a global formulation. The manufacturers in India pay them a license and make them. They cost on an average between 2,000 to 2,500 rupees a kilo. Their cop. The efficiency of refrigeration is much, much lower compared to an ammonia system. That’s why we believe ours is not only environmentally friendly but also far more economical for using. Now the two questions, why this has not been used all along? There are two reasons. There is one, ammonia tends to react with copper. Consequently if you use ammonia as a refrigerant then you cannot run it on a semi hermetic compressor.
Semi hermetic compressor. The refrigerant itself cools the copper winding in the motor. Our patent is around the process by which we use ammonia but still are able to achieve what is called as a quasi or a semi semi hermetic system by which a an alternate material is used to cool the motor windings. So consequently we get the benefit of ammonia but also get the benefit of being a near semi hermetic motor. That’s a system that we have developed. That is where all our IPs around. The second disadvantage which ammonia was thought to have is saying that ammonia’s use can be seen as in low concentrations, not toxic but very high concentration toxic.
So we generally don’t bring ammonia into the homes. If you look at all your window air conditioners which is all there in your offices etc. They are all what is called BRB’s variable refrigerant flow compression system where the refrigerant itself comes into the rooms. In our case we don’t use refrigerant coming into the room. It is only chilled water. So we have mitigated the disadvantages and enhanced and utilized the advantages of ammonia. And as the process our IPs are around this space. This will allow us to offer a system which is not only environmentally friendly economically cheaper and much more efficient to run and use.
The market size like you said, can be anywhere up to 5,000 crore. We will increasingly take market share in any of these systems. First is it has to be established and comfortably used in critical number of applications. And after that it scales up very rapidly. We are working on a PLI scheme to get the volumes to be produced. Currently we can make with our existing facility a reasonable number which is what we will do to deliver a few in the market. And as the PLI scheme is approved, we will really scale up and get volumes.
That’s a long answer for a good small question.
Balasubramanian A
Thank you, sir. Sir, I think customer site delays have impacted installations for nearly three to six months for especially large refrigeration packages. How the situation currently improving. And secondly, I think we can if we are making AC system whether we have the capability to make 2030 CFM for RAC compressors. I think right now we are in the progress of a 800 frame. 800 CFM. Is there any scope to develop in future?
K. Srinivasan
Okay, so in the centrifugal compressor the test Caplipoca we currently start with 2100 frame and go up to 7000 frame. The actual CFM it can deliver can be as high as 8000 plus. But on the lower end we try and stay nearer to the 2000 range. But we have a new frame that’s coming up a 800. Like you said, it is already protozed on. It has been running in our factory for alpha testing. We’ll probably launch it in the market before first quarter. That will cover then starting from maybe 600 CFM onwards. So this will be the smallest centrifugal compressor available in the Indian market. It will replace a significant number of dry screw compressors as well. So this will be a breakthrough and we hope to have it in the market in the first quarter.
Balasubramanian A
Okay, sir, so I think you have missed like I think the whole industry is importing RAC compressors. Whether we can able to develop those capabilities, I think that’s a very small compressors, 2030 CFMs.
K. Srinivasan
Okay, so at the moment our range of Zephyrus starts from 15tr. You are talking of very small compressors like 2030 CFM compressors. We do not make them for refrigeration but for air conditioning. We are in the in the midst of developing a small CFM compressor. It can be very, very small. And this is being done for oxygen. That product will be available in the market from the first quarter. We have not announced it yet. So it will come and then we’ll announce it.
Balasubramanian A
Okay. Thank you sir. All the best.
operator
Thank you. The next question is from the line of Sameer from Ambed Capital. Please go ahead.
Sameer Parkar
Hi. Thanks. So if I back out the orders inflow number from the backlog and sales, it comes out to be around 679 crores which is like almost more than 50% of YY and probably the highest in many quarters. Just wanted to check whether this number is right and this growth is broad based on a particular market or product you want to highlight. And do you have any target for orders for FY26?
K. Srinivasan
Okay, see the orders have not come from, I mean the big orders have not come from the traditional areas. Like I said during the opening comment itself, we generally get large package orders both in refrigeration and gas. This just did not happen during the entire calendar year. 25 last quarter of last financial year as well as the first three quarters. We hope to see some order finalization in large packages from traditional markets only from January. We have seen a few coming in mainly from the oil sector, but we expect more. The bulk of our orders that we have taken this time are not bulk.
A significant part of the order that we’ve taken this time are from non traditional areas which utilize our manufacturing capacities and capabilities. And that would probably drive growth during the first 2, 3/4.
Sameer Parkar
Okay, thank you. And the second one I have is we Talked about the 20% growth and margins is probably the midterm target. Do you see any green shoes to feel confident about? Let’s say for FY27 or FY28
K. Srinivasan
you’re. Talking of EBIT margin.
Sameer Parkar
20% growth you talked about. Right.
K. Srinivasan
And yeah, so the 20% top line growth. See today if you look at for the first four, five years, last four, five years, we have been at a growth rate of CAGR, roughly 19%. This year we are going to be lower. We’re going to probably be 10 to 12%. We expect to come back to a 20% growth rate from the next year onwards on the top line.
Sameer Parkar
Okay, thank you. Thank you. That was all from my side.
operator
Thank you. The next question is from the line of Neeraj from White Pine Investment Management. Please go ahead.
Niraj Mansingka
So, thank you. So just wanted to know color on the orders from the Middle East. Can you tell us how the clients are thinking? Because we have heard about delays in the orders in the Middle east side and our large value of orders might be delayed or might be coming from that side as well. So a color on that index on that side of the market would be useful.
K. Srinivasan
Yeah. So the export business for KPCL itself is only going to be about 140 crores this year. Last year it was about 124 crores. So for us as a percentage it has never been beyond. It has never even crossed double digit. Most of this order, I keep saying from Mena region, they not exactly Middle east. Some of it would be North Africa and we do not do very large distribution of them. It is few package orders. You are 100% right when you say there is a huge delay in orders particularly from oil and gas sector from West Asia. That is true. We don’t have any orders from them. Most of it is for us from the Mina region.
Niraj Mansingka
Okay. And any, any. Okay, okay, got it. And any, any guidance on the revenues for this year?
K. Srinivasan
I think we said so it’ll be 1800 plus.
Niraj Mansingka
Okay sir. Great, thank you.
operator
Thank you. The next question is from the line of Kunal set from BK361. Please go ahead.
Unidentified Participant
Yeah. Hi sir. Thank you for the opportunity sir. I just wanted to you know, get more light on, you know, in view of our completion of tenure. Ms. Aman has been appointed as the MD. So any particular reason for, you know we’re talking for extension as well as what would be the pathway, you know, going right as far as the leadership is concerned.
K. Srinivasan
So I think this would be probably one of the better managed organized succession that companies are going through. My tenure here was primarily to ensure a smooth succession. And as you know I came out of a retirement. I was retired already in Kaburandam. So I came in here post retirement with a particular mandate of developing the next generation of leadership. And it was only for a period of three years and I actually stayed on for two more years. So it’s been here five years and I think it has been one of those very nice succession planning.
Every bit of it has been done together. It cannot be more structured, more organized. And I think this will be one of the nicest transfers that happen and he will do far better, far quicker and far nicer than anything that I have ever done. So I think I’m extremely happy about the way it has developed and you people will all see how it goes as we go forward.
Unidentified Participant
Sir, but if you can talk more about how involved was Aman for all these years. How in the business and if you can talk a little bit about the second time leadership structure, you know, you know what kind of leadership in terms of second time have been developed. What is the structure like?
K. Srinivasan
Yeah. So Kunal, I had mentioned in my last part of my opening comment on the enablers which makes us confident about the outlook, the primary enabler, two measures I’ll give us. One is our employee engagement score is industry Standard it is even higher than industry standard. We have a score of 86 when manufacturing industry is about 82 or 83. So it’s better than industry standard. My attrition rates are below 10%. My IP filing of 106 is averaging more than 40 per year. So in terms of employee engagement, employee productivity, employee measurement, these are all engagement scores coming out.
A whole lot of people, all that’s the 900 odd people in the company pulling together and getting into a very productive phase of growth and development. So this is coming out extremely well and Aman has been intensely part of all this. So he brings in freshness of thought. He’s been championing all the newer things that we’re trying to put out and it has allowed him to work on different spaces. He’s been reporting to the first line reportees, he’s been learning from the line and that has been a good development. Yes, he’s from the investor family, from the promoter family, but he has gone through the rigors of being trained to take on this role.
Having said it, we have also supported him. With a whole lot of leadership team around it’s not going to be Aman alone sitting there and fighting the battle. There’s a whole lot of team out there. There are 200 engineers and manufacturing specialists, design specialists, marketing team and of course the whole financial, legal, secretarial support teams as well. So I think it’s a collective team with a fine young leader who will come in to take it forward from here. Like I said, I’m very pleased and happy the way the whole thing is developed. When you people, any of you have a chance to come and visit, you will yourself go around and see whether it makes sense to you or not.
Unidentified Participant
Thank you so much for that and best of luck for the future years sir and thank you for the valuable contribution.
K. Srinivasan
Thank you.
operator
Thank you. The next question is from the line of Kush from Electrum pms. Please go ahead.
Khush Nahar
Yeah, hi. So thank you for the opportunity. So a couple of questions. So first since we are maintaining the guidance of around 1800-1850 crores of revenue. So could you elaborate more on what are the reasons? Because this would result in around 35% growth for the quarter. So the reason for this is basically the inventory like you mentioned which has not been picked up from the factory or is it some large orders that we expect to execute in Q4 and apart from that secondly on the employee expense cost, should we assume that this combined expense of 69, 70 crores is the new quarterly run Rate because of the change in the laws and post that also we are confident on maintaining around 19 20% EBITDA margin going ahead.
K. Srinivasan
Okay, first thing first. The employee cost will remain between 10 to 12% of sale. That will not change what has changed with whatever is visible at the moment with the new labor code. The Maharashtra state thing has to be notified. Yet are two parts. One is there is a change in the gratuity that will impact and there will be change on leave and catchment and the value of leave and catchment that will impact our measure of both on a forward basis would be about 0.8 to 1% of the total. So it’s not very big in terms of value.
We’re talking of less than 2 crores a year. So that’s not going to be significant. We will handle it. We can manage it multiple ways with a slightly lower increment or whatever it is. There will be a one time top up of gratuity. There could be a one time encashment of leave that would have to be done and these are already notified. We have already calculated this one time top up to be about 18.3 crores on gratuity. The one time leave enchantment would be about a crore. So these are the only one time impacts. There is no grandfathering allowed.
So we are expected to pay for all that is on the book even during the date of transfer as of 21st November 2025. So that is the only thing. But I don’t think that’s going to go without some kind of a challenge. So let there be some clarity because this is all for the past period that we’re talking of. This 18.3 plus another maybe a crore from leave. So that is something that we will have to see. Even assuming this has to be taken, the tax etc will come up only when you have to top up the contribution.
And we may top it up not in one go. We may even decide to top it over one, two, three years. So there is enough time on this. Short answer for the employee cost is this is important for the employees but not significant for the company to make any material impact on the profitability. So that’s the detailed explanation on that. The second question you asked is on the third quarter, see third quarter. If we had dispatched the packages that are ready it is primarily to two customers really. And these are large, large customers, they don’t want to mention the name because they’re also in private sector. So if the site had been ready and if they’d taken it the sale in the quarter would have gone up by more than 150 crore. So to that extent I’m not going to make it in the last quarter.
Ramesh Birajdar
So the last quarter is going to. Be as of manufacturing dispatch, a very routine normal fourth quarter like we would have in any other year. So there’s nothing big that’s going to happen. It’s going to be a routine normal fourth quarter for us in this case and we will get the numbers what we have planned.
Khush Nahar
Right sir. And so just one last question on the gross margin. I think this quarter we have seen around 52% which is around 400bps change compared to last year. Q3 so what were the major reasons and will this be the new sustainable gross margins.
Ramesh Birajdar
Last year December the quarter three is the percentage for the Ramaton it is 51.8 against it is 48.1 for this quarter. So what I am saying that it is again the developing the manufacturing capability that is giving the benefit plus selection of the orders and getting the business only one we can able to maintain the profitability between 18 to 20%. And most of this it is a business where we purposefully took a target to reduce the cost and which is working very well for this quarter. And going forward this will little bit improve because we are developing our manufacturing capability.
And this manufacturing capability, the bringing raw material at the lowest price or the price which we want to build ourselves for the compressor. So both put together roughly we are expecting the reduce 1 to 2% further in going forward.
Khush Nahar
So just one last follow up on that. How much would be the service revenue for nine months?
K. Srinivasan
Okay, see I think service requires we don’t split it. We generally keep it at 15% of our top line sales because if you get detailed that it will get into a quarter by quarter too much of variation. So we bundle it up and give a number of 15%.
Khush Nahar
Okay, all right, thank you.
operator
Thank you. The next question is from the line of Chris portfolio. Please go ahead.
Ajinkya Jadhav
Yeah, thanks for the opportunity. My question is regarding the Zeppelin product. So I wanted to understand like we will be supplying only the compressor or in the package we are going to supply the controls and other things as well. And what will be our sharing value terms per TR of the capex?
K. Srinivasan
You’re talking of the Zephyrus project.
Ajinkya Jadhav
Yeah, yeah, yeah.
K. Srinivasan
Okay. So for Zephyrus the way we are currently thinking is a significant part of the initial sale will be that we make the Zephyrus package and also have to do the installation related things which is really the air handling Systems, the controls, putting it in place, maybe the first hundred 200 packages later. Our interest would be to focus only on making the Zephyrus packages, allowing the installation related activity, which means the air handling units, site work, piping, etc. To be done by a local installer or currently whoever is doing it. So we won’t really get into that space. But for them to have the confidence initially, maybe the first hundred installations, we will do that.
Ajinkya Jadhav
What will be our share in the capex like the per tr, how much.
K. Srinivasan
We are targeting the market price of depending on, let’s say if you’re looking at a 35, 40tr air conditioning space, they are now calculating around anywhere between 35 to 40,000 rupees per tr. And we would take about 2/3 of it, one third would be with the installer.
Ajinkya Jadhav
Okay, okay. And like you said, like we will be targeting our capacities about 15tr. So as far as I understand, ammonia based systems require a higher CAPEX as compared to the traditional one. So how it becomes economically competitive with the existing products, like am I getting something wrong here? Like how is the economic work?
K. Srinivasan
Your question is correct. See the ammonia based systems costing more is the accepted practice. With our IP we expect to break that belief that we can make an ammonia based system and at a price point comparable or cheaper than the current other machines. So that is where most of the IP and the manufacturing ramesh alluded to it saying that unless we make most of the manufacturing in house today you look at most of the air conditioning company manufacturers, they are an integrator. They get most things from different people. Almost all of them get their compressors imported.
Many parts are made by different people in India or outside and they integrate it. We would be an exclusive in house manufacturer of most or almost all of the parts. That’s why the PLI scheme that will allow us a scale and cost advantage which is quite different from what the current people are doing. We expect to make a fundamental change in the cost structure of this industry by doing all this ourselves.
Ajinkya Jadhav
Yeah. Okay. And the last question is, so have we worked on the replacing of these copper pipes with the steel pipes and the toxicity issues by ourselves or we onboarded some technology partners because what I can see in the international market, the bigger player like gea, JND hall have done such products but those are for like bigger applications like airports, huge mall. So you are targeting smaller systems. So how we did that.
K. Srinivasan
Okay, so you got it right when you said the large systems are all in airports. The airports and other places have systems where Most of it is where Cool air is transferred. They also have water pipeline systems available. We are making several products that will finally be a part of the package. I don’t want to get into details of what we are replacing with because there are several projects that are running within the company and several IPs are being filed on the input material. So we know, as you all know that today the only thing that is going faster than silver is copper.
So you have to be careful about what copper we want to use where. And so There are several IPs that we are working around with and we will talk about it once we are established in these spaces.
Ajinkya Jadhav
And the last question is like if we get the PLI benefit, what will be the size of the CapEx or like the benefit from the government? Any ballpark?
K. Srinivasan
Yeah. So the PLI application, what we filed entails that we have to commit a capex of around 300 crore. But this includes the capex that we have already committed over the last two years. So that means for this specific project area which includes input material, raw material, all combined. So we may have to make an additional capex of about 240 which we will do in the next year, year and a half and we have to deliver a sales of at least five times which we are very comfortable about doing. Ramesh, am I okay?
Ramesh Birajdar
Yes.
Ajinkya Jadhav
Yeah, that, that helps. Yeah. Thank you sir.
operator
Thank you. The next question is from the line of Nipun Sharma from VLS Finance Ltd.
Nipun Sharma
Good evening everyone. So my first question would be in two parts. The first part being that if I can recall that you said in your second quarter con call that there was situation of general slowdown in the finalization of orders across industries for air compressors and for the refrigeration segment. You said that large projects were running slow. So I mean I know you said this in your opening remarks that the orders are picking up but I really wanted to know the situation as of now. And the second being that you said that overall the delays in the approvals or the slowdowns in the project executions were one of the main reasons in quarter two that the business was affected. So how is the situation as of now and are there any chances for it to, you know, occur again in the future?
K. Srinivasan
Okay, so let me talk about the comments of you two and what we’re done with you. Air conditioning is still running slow. General CAPEX commitment across most segments is slow. That is not changed. What we meant in particular was the whole of the year 25, that is calendar year 25, no major project orders in the, in the oil and gas sector, in the petrochemical sector was finalized and that is what is created a shortage of large package orders. So this is what really happened. This is probably just. I’m seeing the whiff of some change coming.
Somebody else also asked a question about Middle East. Yes, even Middle east orders were not finalized. Nothing was happening or whatever was finalized also is getting cancelled. This condition of the economy has not changed dramatically. Like we said in Q2, there are segments of spaces where it’s doing well which is largely consumption driven. If you look at the cold chains, the ice plants, the food processing units, the diaries, they continue to invest, they are doing well. There are pockets of chemical primarily going to the pharmaceutical and other spaces that are still continuing to invest. So these are the areas where our refrigeration, air conditioning packages, still small ones are coming in and we are delivering it.
Similarly true with some hydrogen packages, some biogas packages. These are sporadic, the kind of pace at which we were expecting and at least putting out quotes for orders. It’s just not happening. And that’s true even today. The orders that we have picked up to cover up which is really giving us the hope and confidence of doing numbers next year comes from non traditional businesses for kpcl which is why I said these are not from the compression area but parts and components of another industry which we are able to make in our manufacturing capability. That is what is driving our confidence and growth for the next year. We hope that the regular traditional orders would also pick up as we go forward.
Nipun Sharma
Yes. So what you’re saying is majorly they are project delays in the gas compressors. I mean in the oil and gas. Sector because of the uncertainty.
K. Srinivasan
Absolutely. And oil and gas includes petrochemical. There are some large. The two packages that didn’t go our private sector their last petrochemical products.
Ramesh Birajdar
I don’t think you noted the point of order board as on 1st January this 1939 crore which is the second highest order board in the company history. And this order board is more of a equipment site and rather than the large package orders. And this gives a confidence that we are getting more business in the future.
Nipun Sharma
Yes, I actually noticed that. That is why I recall what your comments from the second quarter. That is why I wanted to know. The scenario in this air compressor and refrigeration system thing.
Ramesh Birajdar
Right, right.
K. Srinivasan
Still running slow. Yeah.
Nipun Sharma
Okay. Okay. So my second question being that your gas compressor segment had been facing headwinds earlier but now they are, you know, starting recover recovery and you said in your Q2 contact as well that your segment, you know, share is gradually decreasing. So is that the plan for the future or is there any, you know, hope that this compressor will have a revival in the future?
K. Srinivasan
So let me explain this gas part of it. Well, the gas package system has got two components. The upstream, midstream, downstream are packages. And most of them use aerial process compressors. And we do the packaging. This requires projects. And here we are not still seeing any great traction either in Middle east or in India. So this is still a struggle. But wherever orders are finalized, most of them we win in India. So that’s an area. Once we finalize, we get these orders. Our market share remains very, very high. Middle east, we are among the several major players.
So some orders we get, many we don’t get. So that’s the way it is on the gas package. The second one is the gas distribution business, which is really CNG stations. Now, in CNG stations there are two. There are mother stations with large packages. There are daughter stations with booster compressors. Here we used to have a fairly dominant position. It was almost a duopoly, at least on the mother stations. This continues to be a partial duopoly. There is a third player now in this. But here the actual number of packages that have been taken, the CNG stations is actually dramatically declined.
It is probably last year was the lowest in the last five years. So new gas stations were not being commissioned, new pipelines were not being laid. While PNRGB had put out a target of at least 2,500 installations, overall, it did not. Not even a thousand would have happened. So there’s been a dramatic reduction in new installations coming up. Even the. We manage about 1,200 packages across India. We found that this was not growing and it was at the lowest in the last five years. On the booster side, we are one among many, many players. Most of them are small players.
They are the ones who can do anything to get orders. Here we have consciously, Ramesh has said it, we are not interested in playing this game. We have consciously reduced our exposure in this. Most of the orders that are finalized, except few, which we took, we were not even there in this. Their business. That has also not gone up. Any big numbers have not gone up. Overall, the gas distribution sector one did not grow. Actually, it showed a tremendous degrowth. Our positioning has become more clearer, focused on the main stations and only take boosters selectively, which means our actual sale of gas distribution business is probably at the lowest in the last three to four years.
We have never been lower than this. The only redeeming feature is the main stations or CNG packages as we call. We have now started getting exports which are of of significant value for us. Particularly from the MENA region. That has been a redeeming feature during this year.
Nipun Sharma
Okay, sir, understood. I have two more questions. If that is fine, then.
K. Srinivasan
The moderator would decide. I have no role in this.
Nipun Sharma
Okay. So what are your FY relative studies? I mean I, you know, you have talked about it. 1800 crores. So by that do you expect the fourth quarter revenue to be around 745 crores?
K. Srinivasan
You have the numbers.
Nipun Sharma
No, no, no. That is the expectation. Because I added the first three quarters and then the fourth quarter. I mean is that the expectation that it will be around 745 crores? Add in up to total of 1800 crores for FY26.
K. Srinivasan
We will do 1800 plus for the year. Okay.
Nipun Sharma
And the EBITDA margin will be stable at 18 to 20%. The guidance.
K. Srinivasan
Yes, yes, yes. We have actually given a number itself for pbt.
Nipun Sharma
Okay, sir. Okay. Okay. That’s for. That’s okay. Thank you very much and congratulations on good numbers.
Ramesh Birajdar
Thank you.
operator
The next question is from the line of Sahil from Monarch Network Capital. Please go ahead.
Sahil Sanghvi
What we already discussed last. Yes. Am I audible?
Ramesh Birajdar
Yes, please go ahead.
Sahil Sanghvi
Yeah. Thank you for the opportunity. So what we also discussed last quarter is that the delivery and the order finalization for test Catalipoca also was pretty slow. Correct me if I’m wrong, but what is. What is the scenario around this? Now.
K. Srinivasan
The overall orders for the gas compressor division is steady. It is not improved from what it was in the last two, three quarters. This is a general flow of capital goods in the economy. Today we are getting a significant part of the centrifugal order that are being placed. So Tescatlipuka is a product is a clear start and we’re winning a significant part of order that people are finalizing. Most large centrifugal users would already have installations from several large multinational companies. And for them to make a choice and shift to Testpat Catalip is a big difference for them.
And it’s a good thing for us. We are winning orders we are executing. But even when you execute and ship these orders, we find that the speed at which they are being put to use, what we call as commissioned and handed over, that is still taking time. That means the overall projects generally are running slow across the economy.
Sahil Sanghvi
Right, right. I get it. And secondly, sir, on Zipron, I Wanted to understand the profitability or the margins that we make. Would it be very much similar to the current request?
K. Srinivasan
You wait for a couple of quarters. See, Zephyros is the today not even commercially launched. So we will have to talk of it a little later when we have put some numbers and then we come with it. We have got our own targets in terms of where we want to engineer, where we want to launch it and the target expectation, like I said, our overall expectation of a 20% EBIT margin will not change. We will have to find a path to get to that kind of a thing with a commercial product of a large volume. So there will be a path towards it.
Sahil Sanghvi
Right, right. And Tai Chi, what, what kind of ramp up can we expect sometime lines or some some kind of traction understanding numbers.
K. Srinivasan
India imports about 2000 semi Hermetic compressors largely from Europe. The Tai Chi is placed to take this market share and it will take the share in about three year period because it makes no sense for people to import in euro what would be available with probably the same or better performance in India. So it is a path that you will get there. Generally when you launch, it’s a capital goals. Any new product you launch initially there is a tentative conversion, then there is a committed conversion, then there is a torrent. Just anything that you make will sell. So There is a 10% which we say, then we talk in terms of how fast we can ramp up. We are still the 10%.
Sahil Sanghvi
Got it? Got it. Thank you. Thank you and appreciate your term and your contribution to the company. All the very best. All the very best. Thank you.
K. Srinivasan
Thank you. Thank you.
operator
Thank you. The next question is from the line of Manish from 10 Wise Wealth Managers. Please go ahead.
Manish Goyal
Yes sir. Thank you so much sir, couple of questions. One, as you mentioned that there are no large packages ordered. So if you can just use a revenue breakup like how is it for projects and products for the current quarter and for the first nine months and if possible a comparable number. There’s a broad percentage number would help because the first question.
K. Srinivasan
Okay, so let me put it this way. Let me give you for the full year because nine months would also again distort because we’re going to ship two large packages this year. Since we are executing orders of the last year, big packages are still there. Like I said, two big packages already ready to be shipped. So here this year we probably have about 40%, 35% to 40% of the package business comprise and 50% of the raw equipment. Okay. Next year it will be flipped around the other way. And a large part of it, maybe 65% or 70% would go towards equipment and general items which have what we call a 12 to 15 week delivery item. And only about 30, 35% would be the packaging.
Manish Goyal
Okay.
K. Srinivasan
And far more smoother quarter on quarter you will find it’s much more predictable, much more easy to judge this company.
Manish Goyal
Sure, sure. And on order inflow pipeline sir, how do we see going forward? And because Q4 we will see a very fairly a good execution of 750 to 800 crores out of order book of 1900 odd crores and probably be targeting a 20% group next year. So which implies a very strong order inflow. Aspirates should be very strong in the very high in the quarter four. So what should we expect the year end order book to be? How should we see and what will drive this order inflow in this particular quarter?
K. Srinivasan
Sir, this is one of the most difficult to predict anything. See what we see as a trend is the big orders are not getting finalized. There is an uncertainty in the economy. There is a tentativeness about anybody even running a project which is not going to change. So this is going to be there three sectors. I’ll only give statistics three sectors or have. India have spent most of their capex out of 11.22 lakh crores that was put out as capex last year. And also this year’s numbers have been announced at this point 11.5 to at least 14% higher than last year.
Three sectors have been taking the lion’s share and they’re spending all their money. One is different, second is railways and the third is national highway. They continue to be the three stars that are spending most of the money. Many of our packages are not going to the large oil and gas refinery packages go to the oil and gas sector of fertilizing. Those have not seen great order flow last year. That is because they had 1.56 lakh crores to be spent and they spent very little of it. Now we see that some waking up is there some orders are getting cleared in this space.
Now similar capital outlay will come up for this year as well. Let’s see how this goes. We have lived well even in a case where very little of the oil and gas sector has been spending money and we have lived through that year. We expect 26% should be definitely better than that. So we’re quite confident with the order backlog we have and the kind of new orders that we’re getting. We’re quite confident that we will get this 20% plus.
Manish Goyal
Sure. And sir, how much would we say contribution say from some of the new products which we have launched in recent past and we are planning to launch like will we see a meaningful contribution next year as we are targeting double digit growth.
K. Srinivasan
Two things I’d like to clarify. What we call as a new product is product launched in the last year. So every year something will go on a new product and become an established product. So generally the new products contribution to sales is kept at about 15% and aspirationally 25% because after that it becomes an established product. For example for me, next year Tesca Clipuka is no longer a new product. QNA is no longer a new product. So they all have been around for three years. Then it has crossed the 10% mark. They become a regular product.
So you should take it that there’ll be new launches, new products like Zephyrs will be a new product. New product as a percentage of sale will remain in the band between 15% and aspirationally going towards 25%. This is an international standard that we follow. All companies look at a 3M or somewhere. They all define new products as product launched. And last year targeted sales generally for them is 25. We are still beginners in this game. So we take it as 15 going towards 25.
Manish Goyal
Sure, sir. And one question on the margin. Sir, so just wanted to clarify on the EBIT MARGINS you mentioned 20% or 25% for next year?
Ramesh Birajdar
Currently. Yeah, between.
K. Srinivasan
Yeah, 20.
Manish Goyal
Okay. Okay. Thank you so much. And Mr. Srinivarshan would like to thank you so much for taking the company to new heights and creating large growth opportunities for the company. Sir, I really appreciate and wish you all the best. Thank you so much.
K. Srinivasan
Thank you.
operator
Thank you. The next question is from the line of Saurabh from Oak Lane Capital. Please go ahead.
Sourabh Arya
Yeah. Hi sir, just two questions. The first is could you explain this what exactly this non traditional order inflows are? Do we used to do similar business. In past and second will the margins. And working capital etc. Would be similar to our compressor business or it would be different.
K. Srinivasan
Okay, it’s an important question. So let me answer it. Why I’m not using the particular sector to which we supply is that we would not like to disclose the sector. We would like to still allow it to let it repeat before we talk. Okay. The product that we manufacture currently are a version of what we would have done before. It’s not that it’s a completely new product in the earlier days. It would have been an integration of parts that would have been procured from different vendors and put together for SMB testing. The current way that we manage gives us an advantage.
That’s why we’re seeing this kind of scale. Otherwise you won’t get this volume. The current way we manufacture is we do almost everything entirely within the factory, which means we fold, we cast, we machine, we do all the other work. There’s a heat treatment, There are so many other things honing, finishing, grinding, blah, blah, everything. And then we assemble, test the product and deliver. So in this kind of a complete manufacturing capability is not available with too many people in India. That’s the advantage by which we picked up a much significantly different volume. Most of this would have been earlier coming from parts of the world which are not currently very easily available to everybody.
So that is allowed us some advantage. So we are making this in this form for the first time. But this product itself we are very familiar with. It’s not something that we have never done before and let this stabilize. Once these things come to a particular shape, it is better to discuss at that stage. I would say that the margins are not going to be any less than the compressors because since we do most of the manufacturers, the margin expectation will be higher.
Sourabh Arya
And working capital.
K. Srinivasan
Working capital in any orders of this nature tends to be higher than normal. But for us, since everything is in house, the quantum of working capital is small. But it takes from cash to cash. It will be a longer cycle. It’s almost like a package order takes about eight months to have cash to cash.
Sourabh Arya
Understood. And secondly, I think in this call. We did not talk about the, let’s say percentage growth of three segments. How much air grew, how much refrigeration and how much gas was nine months. That would be very high.
K. Srinivasan
Okay, so now here I have to take a caveat that this is a very fast changing ratio. While the absolute growth numbers for me is relatively more predictable. The split between the four segments, the segments we’re going to now talk about release air refrigeration and air conditioning which is now getting bolted on really. And then the process gas and now the fourth segment which is really others which include lot of manufacturing driven. Now the split is definitely going to change going forward and it will change very rapidly. Once the PLI comes up, the refrigeration, air conditioning numbers will shoot up.
The other business today is going to be something which will become a reportable segment from first quarter onwards. So I would suggest that the traditional number that you have been given will change Rapidly and talk more about it after the first quarter.
Sourabh Arya
In first nine months, how they did.
K. Srinivasan
Would it be possible to say, yeah, yeah, so the first full. Not first month. I’ll give you the full year. I’ll say for the full year it will be that the top business will be the refrigeration, air conditioning business. Talking about 40% processed gas business, between 30 to 35%, the air compressor business, about 20%. The rest is about 5, 7, 8.
Sourabh Arya
Okay, this is helpful. Maybe just very. Lastly, for this other segment, will it. Become structural play for us as in we get success?
K. Srinivasan
Because let’s give it something. I would, I would request all of you see we are being as transparent as we can. I would suggest that you give us at least one or two quarters. Like I said, things are changing. The current state of economy. And the only thing you must appreciate is the organization itself is today so imminently flexible with capabilities that we will not be surprised by any change in the market dynamics. So to that extent we are being far more responsive rather than reactive. We can take things quickly to see that we continue to deliver numbers. But this change is so rapid that I would like to commit something longer term after one or two quarters. I hope you’ll accept that.
Sourabh Arya
Perfect, sir. This is really helpful and really appreciate, you know, all the calls and all the insights you gave us over these calls and over all this year. Thank you very much. All the best. Thank you.
K. Srinivasan
Thank you.
operator
Thank you. The next question is from the line of Ishwar from. I thought pms. Please go ahead.
Niraj Mansingka
Hello, ishwar, Are you there? Okay, take next one please.
operator
Okay, the next question is from the line of Neeraj from White Pine Investment Management. Please go ahead.
Niraj Mansingka
Just one question on the new products. If you have new products in the last four years or so, what was the revenue contribution today for you?
K. Srinivasan
So I would say roughly about 250 +300 somewhere in that range. So roughly about. If you say 300 on 1800 would be about 15, which is what I kept saying, saying that we are at about 15%. Would love to go take it to about 25.
Niraj Mansingka
So that is what you said for the products for one year period. But cumulatively for the last…
K. Srinivasan
Yeah, new product is what is developed and designed for the last three years.
Niraj Mansingka
Okay, three years, three years.
K. Srinivasan
Always new product definition means products developed, launched, sold in the last. And it is continuously rotating.
Niraj Mansingka
Got it.
Ramesh Birajdar
And, and, and even that does not. Include the launch of Zephyrus. Right. At all.
Ramesh Birajdar
No, no, no.
K. Srinivasan
Only few numbers for our trial.
Niraj Mansingka
And the last question on the R&D. R and D spending. Is there a way to figure out how much R and D money you have spent over the last few years as a percentage of revenues?
K. Srinivasan
Okay, now this is a another tough question and we just went through it in the book. So I’ll give you a little longer than what you would expect as an answer. See what is recorded in annual reports, etc. As R&D spend generally is about 1%. Okay then. And there is a reason behind it. I would rather than directly take it as a business spend and spend it because then I am able to absorb my full gst. I am able to do the trial development and just launch it today. There is no advantage to specifically categorize it as R and D.
I don’t get any additional Lithuania. I don’t get anything. So what I talk of as there is a reportable R and D space which most Indian companies will talk of one person and we can keep arguing being low or high. But as a company, kpcl, I look at my design development, new product application and R and D combined as what I do towards what is traditionally seen as a research and development activity. I think that we are about 3 to 5%. We are not smart. We have been filing at least 40 IPs a year. So I think there is a significant investment. So I would urge people not to read only the reported annual report number which is more coming out of a reporting requirement.
Niraj Mansingka
Actually that’s the reason I asked you. Because it’s so much of R D products. You should be spending a lot of money.
K. Srinivasan
This is true with a large number of Indian companies. See, this is something which we argued on several forums. Now unless there is a real advantage of reporting it as an R and D expense, people get expensive as normal. Why should I take it? I’ll take a development, new product development. I’ll just finish it.
Niraj Mansingka
Thank you.
K. Srinivasan
Thank you.
Kashyap Javeri
Thank you. The next question is from the line of Shabs Zaveri from MK Investment Management. Please go ahead.
Kashyap Javeri
Yes sir. Sorry to circle back on this. You know in one of the questions you mentioned that there were some packages where some of the private sector players could not pick up the deliveries because their own sites were not ready. And you mentioned also a number for about 150 crores. Hello. Is that, Is that, Is that correct? Did I hear that correctly?
K. Srinivasan
Yeah, it’s a little. Even more. 180. Yeah, go ahead.
Kashyap Javeri
So I’m just trying to correlate this. If I look at your raw material purchases number for the quarter and in fact you also mentioned about the working capital at the end of the quarter which in fact is lower than like you mentioned versus September quarter also ideally that number should have reflected there. Right.
K. Srinivasan
See this packages. When we talk of the two packages that are now ready, not dispatched, I think the work started last year in the third quarter. So material purchase, manufacture, like I said, project orders run anywhere between eight months to 16 months this year this order has run the longest. I think it’s run almost 16 months now. So they you will never be able to correlate a quarter’s purchase of raw material to a quarter’s inventory to quarters dispatch. So that’s why till we come to a stage where these long cycle items diminish and become a small part of our business, these numbers become almost, let’s say unreadable and understandable except for the guys who are actually running the business.
Manish Goyal
Okay, okay, okay. And this ideally, I mean assuming that there is no untoward circumstances this would get probably delivered this quarter.
K. Srinivasan
Yes, Sabrary.
Kashyap Javeri
Sure, sure. Thank you so much. Yeah, that’s it. From my side. Just needed this clarification.
K. Srinivasan
Thank you.
Ramesh Birajdar
Thank you.
operator
Thank you ladies and gentlemen. That was the last question for today. I now hand over the conference to the management for closing comments. Thank you. And over to you sir.
K. Srinivasan
Yeah. So let me start by thanking each and every one of you. I have been with Kilosma pneumatic and talking to all of you for over five years now. I must thank each and every one of you for your interest, your kindness, your support, your advice, your enthusiasm and many times telling us the right way forward. I enjoyed all the interactions. If ever I have been either too quick in replying or wrong in my replies, my apologies. I really wish all of you well. Do well in your life. Do well in all your investments. Make lots of money.
Be happy. Thank you for all the support you gave me all these years. My successor is a better person, a smarter person and I’m sure he will get all your support and KPC will continue to do well going forward. Thank you all once again.
Ramesh Birajdar
Thank you.
operator
Thank you on behalf of Antiq Stockbroking Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines.