Menon Bearings Ltd (NSE: MENONBE) Q4 2025 Earnings Call dated May. 20, 2025
Corporate Participants:
Arun Aradhya — Whole Time Director and Chief Financial Officer
Aditya Menon — Executive Assistant to Chairman
Analysts:
Rohit Bahirwani — Analyst
Kunal Tokas — Analyst
Analyst
Unidentified Participant
Harshil Solanki — Analyst
Presentation:
Operator
Ladies and gentlemen, I welcome you all to the Q4 and FY25 post earnings conference call of Men in Bearings Limited. Today on the call from the management team we have with us Mr. Arun Aradhya whole time director and CFO. To the right of Mr. Aradia we have Aditya Menon, a part of the promoter group. And to the left of Mr. Aradhya we have Anshul Menon again part of the promoter group.
As a disclaimer I would like to inform all of you that this call may contain forward looking statements which may involve risk and uncertainties. Also a reminder that this call is being recorded. I would now request the management to detail us about the business and performance highlights for the period ended 31 March 2025. The growth plan and vision for the coming year. Post which we will open the floor for Q and A.
Over to the management team.
Arun Aradhya — Whole Time Director and Chief Financial Officer
Hello. Good afternoon everybody. So we are meeting after first we have to salute to our armed forces. Because of who we can have a successful operation. Sindur, let us salute them first. So now coming to the performance of our company on a contracted basis. Total revenue recorded during the year is 244crore as against rupees 214crore last year. That is year on year increase of 14%. Growth the PAT is 2528 crores as against 24.35 crores last year, that is increase of around 1010% plus and that PBT is 34 crores that is 14%. We estimate a growth of around 20% plus this year to reach almost rupees 300 crore turnover on followed by year on year growth of 19% for following two years with PAT of average 13% for three years and EBITDA about 22%. So far as uncertainty in exports are concerned because of tariff declared by Trump that is by USA still we are unable to know exact impact of US tariff on our business, but it seems that we shall be able to pass on burden of duty fully to some customers and partially with some of them. But still we are not initiated or customers also have not initiated any discussion regarding this. But according to the filler that we have got what I feel that most of the customers will absorb the additional duty that will be levied by the USA by way of revised risks etc. But still nobody is sure exactly what will happen to the tariff and what will be the rates that is still uncertain. Uncertainty is still prevailing and nobody is able to comment upon that. As of now and in spite of increase in the business, it had no significant impact on profitability for the year access because of input prices increase. There is a pre decided formula with many of the customers depending upon 3 months average or 6 months average. Considering 6 months average of raw material prices, there was a very little impact on the average prices as compared to the last period. So we could not pass on fully the burden of raw material prices to the customers. So because of that EBITDA had not changed much and there was little impact on EBITDA as well as on the total profitability of the company. However, this impact can be passed on to the customers after considering the average of raw material prices during the current six years and I am sure we should be able to pass on the burden according to the formula that we have already decided with them. Apart from that, what I feel that you must have gone through the details and results of the company as compared to the corresponding quarter of the last year. Here the total income increased by almost 20%, PBT by 15.47% and PAT more than 17%. We continue to look forward to see that there will be good amount and significant increase in all total revenue. Ebita, PBT and PAT as well. We are very sure considering the development going on, samples approved, the production items to be productionized in a recent future. We are very hopeful about the performance of the company as a whole. Now I request all my colleagues to go ahead with the questions in if they they are having any.
Questions and Answers:
Operator
Sure, sir. All those who wish to ask a question may please use the option of raise hand. Alternatively if you’re not able to do the same, I request you to drop a message in the chat box and we’ll invite you to ask the question.
So the first question in the chat box is what is the segment wise margin and segment wise revenue potential for the company? Segment wise margins as such, if they are talking about EBITDA margins for the year 2425. For the last year EBITDA margins in bearing were 20% plus then almost 21% in aluminum division that is ALCOB Ltd. And in brakes it was 3%. I would request. Rohit, sorry, you’ve done something
Arun Aradhya
Potential as such, if you see what we feel that this year we will be recording EBITDA margins of more about 65 crores with profit before tax of around 50 crores and net profit around 37 crores. This is what is the potential that we see. These are all estimated figures and let us see. And fingers crossed.
Operator
So we’ll take the question from Rohit Bhairwani. Rohit, you can go ahead.
Rohit Bahirwani
Thank you for giving me the opportunity. The first question I have is I was looking at your investor presentation and that you have incurred a capex of around 20 cr in the biomedical division. But the capacity is same as last year. Can you explain why is that and how much expansion. Have incurred in this B Metal division,
Arun Aradhya
In B division what we have done that we have completed the infrastructure facility that is around 45,000 square feet of building that has been completed and we are having there a lead free plan. Lead free material production is being done there and along with that we have increased the capacity of washers now that Is by almost 7 lakh offices per month and the capacity of total 5 crore 28 lakh of pieces per year is the present capacity now.
And we have specifically increased this capacity in view of the orders that we have received from Alison USA and Alison USA people are here for sample testing and everything and that is almost over now. And maybe within a period of one month from now we will get final result from USA and thereafter maybe from August. What I feel that a business of around 2.5 crores per month will start thereafter only with USA apart from other items under dollar.
Rohit Bahirwani
Okay, okay. And what is the capacity utilization in the bimetal division after this capex and how much potential is there in the In. In that segment to increase our revenue considering the present contest you see additional 7 lakh.
Arun Aradhya
Let us keep that aside. Considering apart from the 7 lakh of pieces additional capacity per month we have created the present utilization is 85% for this month. And I am very happy to let you know that during this month Biometric division will will be recording highest sales in the history of the company with highest ever profit for the month.
Rohit Bahirwani
Okay. Okay. That’s great. That’s great. Congratulations for that. And considering the CAPEX in LCOP division which is around 12.5 cr how much capacity will be increased in LCOP division? Specifically
Arun Aradhya
I will let you know exactly the capacity access of production capacity of metal that is already in place. What we have to do is to further increase the demand from the customers. We have to have another machine matching to the demand of the customers. So we’ll be adding the machines and production capacity will remain as it is of matter. Okay Mr. Mr. Aditya Menon wants to talk to you.
Aditya Menon
In aluminum division we’ve done a new shed of 65,000 square feet which is now operational. So we already invested in two foundry machines. 900 tons and 580 tons for production. And we already invested in few VMC. So currently we still have 30% capacity free but as spare capacity. So as we get more orders we just have to get the VMC machines just for final machining.
So the main bulk of capex we have already done for biometall, for bimetal division and aluminum division. So the main capex of getting the land, completing the building, getting all the permissions. So all the main critical part is done just the additional. Whenever the orders are in place the extra machines are required that that we have to do so every year roughly around 3 to 4cr is required for that extra investment. But everything else is in place which has already been done.
Rohit Bahirwani
Okay. Okay sir. Got it. I’ll join back in the queue. Thank you.
Operator
We’ll take the next question from Kunal Tokas. Please go ahead.
Kunal Tokas
Yes. Okay. First question is. You said that there is still some raw material cost increase that you have yet to pass on and that you will pass on in the upcoming year. So what would that amount be?
Arun Aradhya
Amount? It is not certain. We have to calculate the revised prices from the date when it will start. Maybe from 1st of October. The revised prices.
Kunal Tokas
What do you expect the percentage to be?
Aditya Menon
I will tell you how it works. You know the formula. Normally it equals out. So this last six months we have made the cost. So next six months they. They’ll. The companies will bear the cost. So normally over a period of two years the delta is equal. This, this last six months we have bear the cost.
Arun Aradhya
And so far as percentage is concerned it will be above 10 to 12%.
Kunal Tokas
10 to 12%. Right.
Aditya Menon
But that also depends now on the what situation. The prices go up and down. But normally that is a delta which gets equalized. What is it? Three months? Three months is low. So you get at the right equilibrium price.
Kunal Tokas
Yeah. As of now what you believe is that it will be 10 to 12%.
Aditya Menon
Yes. If everything goes smoothly we should benefit on that.
Kunal Tokas
Okay. And second question is regarding the ongoing capex towards Alcorp division. So is it more of a bottle making operation or increasing the capacity?
Aditya Menon
No, it’s just because we have a very strong order book like how Mr. Said for the next couple of years. Seeing that in mind we have gone for a increase in CapEx. So we have already invested. The majority of the CAPEX is already done. So the machines are already installed and in operation. But like I told you, like if some parts come they require some specialized machining so that only few VMCs. According when the order comes we have to add. But the main CAPEX is already done. The whole building, transformer, electrification, the main, the heavy chunk of the CAPEX has already been done and is in operation now. So the 60 bathroom square feet building is already operation now. So the first phase of machines are already shifted and the operations have begun.
Kunal Tokas
All right. And what’s the progress with railways in the brake segment for brakes?
Analyst
For the brake segment, before we apply for railway we have to get a dynamometer, the equipment that you have to have in house for testing. So that is already ordered. That should be here by September. So maybe almost six to eight months. So should be a time period till we start getting the brakes business. Because after we have a dynamic, after they finish the audits is a.
There’s a testing period from three to six months depending on the product from the railway side only after that gets done, we shall go ahead with the railway orders for the brakes division.
Kunal Tokas
Yes. Okay, understood. Thank you very much.
Aditya Menon
Yeah, thank you Kunal.
Operator
Thank you Kunal. We’ll take the next question from Piyush Patel. Please go ahead.
Unidentified Participant
Thank you for the opportunity. Sir, I have a couple of questions. Like in your bearing business how do you see the competitive positioning changing? And are you seeing any competition growing in engine bearings business going forward? Or how is the industry faring in context of current rate disruption due to duties and etc.
Arun Aradhya
See I would like to add like in the organized sector there are four main players who supply to the OEMs. So Men in Bearings is one of the four players. So when 1993 when the company started we had 0% market share. The other three organized players had the whole market. Today we have around 18% of the market. The organized market. Organized market. What I mean is OEMs.
So for last 25 years we keep on increasing our market share. So as such we are not worried about the competition. We are the competition for the three bigger players.
Aditya Menon
And as. As I told you that what we are estimated considering the items which are. Which are under development, which are already developed. Considering that I hope to grow at a rate of 20% maybe in exports. Majority, majority will come through exports only. So custom duty will have. Will have no significant impact on our turnover.
Unidentified Participant
And my other question is where do you see your margin sustaining in the bearings business? Like what are the sustainable margins in alcoves and brakes business since it looks lower in those business versus bearings.
Aditya Menon
Margins we are talking about EBITDA margins or fat margins.
Unidentified Participant
Ebitda margins.
Arun Aradhya
EBITDA margins are more basically in alcove. That is comparatively more than biometric division or it is little, little more than what we are having in biometric division. And since we are. We are just started one and a half years or two years back in brakes only it will have the comparative EBITDA margins will be there only after one year from now.
After getting the business of railways as well as with OEMs. Also after introduction of dynamometer we will be getting samples approved of both OEM as well as of Redweight. Because of which our business will be at par with what we are doing in aluminium division as of now. And so only then it will become comparable.
Aditya Menon
Because brakes is a new product. So it’s only been two years now. We’re not even at full capacity there. So as we start utilizing capacity there will be efficiency. We start getting better margins. So in the next couple of years even when in brakes should be at the similar levels of marine bearings and marine alcohol.
Unidentified Participant
And sir, it’s good to see that next generation now coming forward. Like how are the rules defined?
Arun Aradhya
You see Mr. Aditya Menon is looking after bricks and aluminum division. And Mr. Anshul, he is looking after Bearing. Now of course both of them know about each other. Of all the companies we are regularly meeting in men and bearing to discuss about the progress and estimates and development going on in all the three companies. And it is a. Actually a cross functional team that we. We can call. But basically both of their. The basic focus of them will be Mr. Ajit Mer on Alcop and Bricks and Mr. Anshul on Bearings.
Aditya Menon
And for you to get a better picture we top management are common in all the factories. The Bi Metal division has own GM and a whole team. Alcop has a whole GM and a whole team. Breaks has a whole GM and a whole team. But we are common to all. We are common top management. Mr. Arade, Mr. Dixit, me, Anshul, my dad. We all are common in all the business.
Unidentified Participant
Okay sir. Great. Thank you.
Operator
Okay Biyush, we’ll take the next question from Arnau Sahuja. Please go ahead.
Unidentified Participant
Thanks for the question. So basically I just wanted to know. So we are planning to enter please. I think Arno, there is some background.
Arun Aradhya
Put in the chat box.
Operator
Okay. Now meanwhile we’ll take the next question from Rohit Bahirwani. Please go ahead.
Rohit Bahirwani
Yeah, thank you. I had one question on the break side. I understand that you are exporting around 50% in the brakes division which you did in FY25. So could you please tell us where we are exporting in the brakes division? Who is the customer? If you can share anything in that regard.
Aditya Menon
To give you a basic idea, we’re doing merchant export. We are exporting to the Middle East. So we are exporting the Middle east, uae, Oman, Qatar and from there we are even exporting to Africa, west and East Africa. So we don’t want to do direct business in Africa because of risk involving payment, collections and etc. So through parties in Middle east we are targeting African markets also where there’s high potential for break bags and this breaks.
Rohit Bahirwani
Okay. And any talks with any other OEM whether in India or in the abroad for breaks division, do you have any types?
Aditya Menon
Yeah, we are in talks with couple of 3, 4 OEMs to be. I don’t want to take names till it clicks but there are three, four winds in five lines and like Mr. Araj and I mentioned, we’ve invested in a dynometer which is a very expensive machine required for testing. So as soon as that comes and you know it’ll take make sure all the processes go faster and if even 1oem clicks we’ll have to invest and you know our capacity will be. We’ll have to invest one more line because we’ll be in full capacity. So this year oem, you know we shall be giving you good news by end of this year division.
Rohit Bahirwani
Got it? Got it. And one final question on the EV segment, I understand that you are working on a component in the EV segment. So what exactly is that component and whether trials are completed? We are in commercial production. At what stage are we in the EV side.
Aditya Menon
Actually for EV in from alcohol side we are supply to ev. So for the last four years we supplying to Tesla Motors through Concentric Pumps. So we are a Tier 3 supplier. Like concentric pumps is a big company. So we do the manufacturing for them and they got a contract from Tesla. So that’s one part.
Another part from Eaton Transmission. Porsche E Mobility. So we have to develop four parts for Porsche E Mobility which are already samples are submitted and the production should start from next month. So the last three years we’re working with Porsche E Mobility and now in the Indian Indian market with Tata Motors for their Tata Curve. We are working with Taco Pressrolite. It’s a sister concern of Tata Motors.
So we have developed two EV parts for them, also for the electric batteries. And for the last one and a half years as a company,
Arun Aradhya
As men at Alcorp, we are trying to shift towards little bit, not everything. We’re trying to shift towards EV because EV has the latest technology. So that keeps us as a company also at the. What do you say or the latest technology in the aluminum casting is. So we are exploring that and we are successfully making samples. Because ev, the walls have to be thinner. It’s higher technology. Working with Porsche and Tata. So we are developing four. We are entering into EV also. You like? I would like to say.
Rohit Bahirwani
Yeah, thank you. Okay. Okay. Thank you.
Operator
Thank you. Rohit. We’ll take the next question from Bharat Gupta. Please go ahead.
Unidentified Participant
Hi. I hope I’m audible.
Arun Aradhya
Yeah. Yes. Yeah.
Unidentified Participant
A couple of questions from my side. So can you just help me like quantify the order book position which we have at present and what kind of RFQs we are expecting across both the segments Alcob and Bimetal during the. During FY26. Okay. So as of now if you take this month, the total order book position is 23 crores put together on contracted basis and 45 crores of businesses in pipeline so far as biometric division is concerned. And in aluminum division we are having pipeline of 60 cross.
Arun Aradhya
Where we actually already got the RFQ and POS. So this will take around this year and next year to monetize it. So actually in our business how it is from once you get the RFQ then we see the feasibility, then we fix the prices. Then it takes us three to four months to make the dies. Then we make the first sample. There’s the first batch of 300, 400 which we make which have high precision testing at our end and our customer end.
So the whole process from start to end takes around nine to 10 months. So we have a strong order book in present. So total bi metal and alcoc. I would say we have around 90 crores already confirmed orders. So which we will be executing in the next two years, in the next two financial years. And what RHQs we get now that will get converted in little bit more time. So this is confirmed order book which Mr. Told you right now.
Unidentified Participant
Right. My piece of understanding pertains to the fact that we are aiming for 20% kind of a CAGR growth for next three years. So like incrementally we are adding capacity. So the kind of order book position which we should have, ideally it aligns with that or somehow it depends on the incremental amount of RFQs you will be getting across newer segments. EV, defense, railways. What’s your take on it.
Arun Aradhya
So so we are not depending upon the other components which are which we have already received the RFQ which are which have been samples have been submitted which have been. Already tested, validated and it will be productionized as Mr. Aditya told you that it will be productionized in this year and next year. Within two years all this will be completed. So that we can achieve year on year growth of 20% easily.
Aditya Menon
And for just better understanding, these are not some new EV customer or something. These are already our current suppliers. We are just doing more for for them in the export category. Because like we mentioned before global manufacturing or people in India who are preferred suppliers are benefiting from this. Because all these big MNCs want China plus one plus Europe plus one supplier. Thus we are seeing this growth.
Arun Aradhya
So that growth is mostly coming from exports.
Rohit Bahirwani
And in terms of our cost competitiveness, how we rate across the other three suppliers. Because you mentioned in biometers there are place. So in terms of cost how are we? Please.
Arun Aradhya
See so far as building B division is concerned we are single source to John Deere for more than 25 years from now. We are single source. Today so far as international tractors is concerned we are 80%. We are having SOB of 80%. In Tata Motors we are having SOB of 60%. So in Cafe we are having SOP of 85%. So they must be considering the prices as well. As compared to the competitors our prices are little lesser. But if you see the results of all these companies who are our competitors like BI Metal, Petrol, MOHR and kspg. Our profitability and EBITDA margins are far more better than they.
Operator
Sure. Sir.
Aditya Menon
I would like to give you one more or one more side to this. In our industry there’s only. It’s not only price sensitive. Here we have to have strict quality checking. Because all products are extremely technologically sensitive. Even if one bearing fails, the whole engine ceases. So quality is a big factor for customers while choosing a supplier.
Arun Aradhya
And also timely delivery. So all our customers are MNC and there are high strict quality and time delivery factors which we are graded on. So price is one factor but all the other. Technology readiness, all the other things also play a key factor for a customer while choosing a supplier. And we are getting zero ppn certificate from many of these customers. So zero means zero rejection per part. Million part per in million. So in million parts there will be zero rejected parts. So that kind of quality and precision we are working with here, right?
Unidentified Participant
Just a question sir. In regard to the exports only because of the.
Unidentified Participant
The tariffs. So have we seen any kind of a differment by the customers in placing the orders or in giving us the RFQs or we are seeing the demand to be interaction and customer support is always with us.
Aditya Menon
See I just for a basic understanding I’ll just tell you like now we give a part for John Deere for example. See my bearing is hardly 35 rupees, 100 rupees. That tractor is for lakhs. So this big MNCs bear the main duty or you know duty tariffs. So they normally absorb it. They don’t pass it on to smaller players like me. And if they pass it down also it’s shared or you know it’s as a supplier we never get the whole brunt of it. The big players who sell the whole tractor, they seize the for them the duty is the final product.
So till it gets passed down to us it will take time. Till now we haven’t seen from any customer. We do 35% of our total business export. We haven’t seen any duty increase or any pressure from our customers yet.
Unidentified Participant
Right. Just a confirmation like in terms of your opening remarks you highlighted on EBITDA of 65 odd crores and PAT of 37 crores. That guidance remains for FY26.
Arun Aradhya
It is what 26, right? Yes, right.
Unidentified Participant
And just a final sir update. Like if you can share across the BRICS India segment. Like we were working in getting a tie up with them for I think BRICS segment. Any update you can share with them.
Arun Aradhya
You see just now Mr. Aditya told you that after the receipt of dynamometer it will be applicable for both railways as well as for this bricks India as well. So simultaneously we will get into business of both railways as well as OEMs. And that probably will be at the end that this good news will be by the end of this year.
Aditya Menon
Like just to get a better explanation, a dynamometer comes from anywhere from 4 crore to 10 crore. And currently for break India they have multiple nanometers. So when we give a product they have to have free testing beds because see they already have existing customers. You know, because we are a supplier of bearing and bushes to brakes India they have. What do you say? Because of a good relation for the last 25 years they have accepted us or what you say. So we have to do according to that bed timing their testing and this all testing takes three months, four months. Because it’s critical in a safety product. Because braking goes in a safety product. There’s more, more stricter testing going on with that. So as we have invested in a dynometer ourselves. So this process will get faster. And we shall give you good news soon.
Unidentified Participant
Right. That’s it. From my side, sir. Thank you.
Operator
Thank you. B. Sir, we’ll take a question from chat from Arnav Sahuja who asks. We are planning to enter the EV segment for ALCOP’s supply of components to Porsche. But Porsche has announced that at a global level it is reducing its focus on the EV business. Is this likely to impact us in any way?
Aditya Menon
When I say I’m developing parts of Porsche, I’m not developing 100 parts, I’m doing four parts for them. And whatever quantity they have given us is what do you say? It’s a new. It’s a part which can go in EV segment also. It can go in a EC engine also. So it’s a good business, four parts. I don’t know if I’m allowed to tell how much, only four parts businesses. It’s a good, good amount, I would say. And yeah, so it’s a positive business for us.
And for us what? One more important thing is working with Porsche and Eaton. It pushes our technological limits. We are working with thinner fins, thinner wall sizes, more efficiency, more technology. So as a company we are, we are more capable to adapt to more. What do you say? More. We get accustomed to make more difficult part for, you know, more value addition as such.
Arun Aradhya
Apart from that, whatever orders that we are receiving from our major customer John Deere now, which are to the tune of more than 55 crores. So as compared to John Deere, this Porsche segment is comparatively not significant. You can say it will not have any impact on the total revenue whatever we have estimated so far.
Operator
Thank you, sir. We’ll take the next question from Ashwin Taparia. Please go ahead.
Unidentified Participant
Thank you for the opportunity. Good afternoon, sir. I hope I’m audible.
Arun Aradhya
Yeah.
Aditya Menon
Yes.
Unidentified Participant
All right. Thank you. So, a couple of questions. Firstly, sir, Arun sir stated that initially he laid down remarks about the vision for the next three years. I just want to understand because currently the promoter holding is at approximately 64.8%. So for the next vision, are there any plans going forward to dilute the stakes and how are we shaping up for the next few years?
Arun Aradhya
See if you are able to give me the pricing of 175 per per share. I am. We are ready to dilute to some extent. Are you ready?
Unidentified Participant
All right. I got it. All right, sir.
Aditya Menon
And just nothing like concrete like you know, we want to dilute anything. It’s just last 25 years, family has put so much effort. It’s just wealth creation. If you know if there’s good value, if it’s not company is doing well, there’s no hurry or, you know, rush.
Arun Aradhya
We are not into rush any, anything like that. But whenever there is a possible, we can unlock the value. But not to a major extent, we will not go. Maybe it can be to the tune of 2%, 3%, 4% and that’s all. And we are not going anytime. In the future we will not be having a stake less than 60%.
Unidentified Participant
Got it. And so just to follow up on this. So since we are seeing that we are exploring opportunity for export market. Export is doing well. We have also seen news coming around European market that the manufacturing plant of one of the company, Japanese maker, they have stated that jobs would be cut down. So just wanted to understand your perspective since you are supplying to Poche through Eaton. So how’s it shaping the European market overall? Are we seeing any demand trends over there? And how is it going to shape in future for us in terms of export?
Aditya Menon
See, I would like to explain. See now I would like. India also has gone through a war now. But before this escalation happened, all MNCs have shifted their global sourcing to India. Because they want a China plus one solution for sure. And after Russia and Ukraine war also energy prices in Europe increased tremendously. So they couldn’t sustain it for a long time.
So even European companies are shifting towards India or we are seeing a bigger number of RFQs coming now. Five, six years ago I remember Mr. Arade me, I had just joined business. We used to go to Europe us. Hey, you know, going to door to door, you know, giving a company presentation what our strengths are. But today the situation has come like they are sending RFQs.
Arun Aradhya
They are approaching us.
Aditya Menon
They are approaching us like once if the rate is final, they want to come start manufacturing in India. But this is only for companies who are doing well. You know, focus on quality and that not only men and bearings, but other companies also who have good quality, good financial strength. They. They should also be. And they’ll also be having the same scenario where they are getting RFQs from abroad from Europe and USA.
Unidentified Participant
Got it. All right. And so just one, one or two more questions. You stated about the this dynamometer, it will be bought by September. I guess so. Just wanted to understand has the approval started? Have we got approval from rdso, the railway department or.
Arun Aradhya
We have already done our initial registration and everything. We have already done registration and it is pending. Final certification is pending for what of and
Unidentified Participant
What would be the incremental revenue we will achieve through this?
Aditya Menon
Incremental revenue will be around 2 and a half crores per year, per month.
Unidentified Participant
Got it? Got it. All right. So and just wanted to understand how much cash are we sitting on in the balance sheet?
Arun Aradhya
Almost, I think 21 product.
Unidentified Participant
Got it. Thank you. All right. And so last question from my end. So just wanted to understand since you.
Unidentified Participant
Brought down the vision for the next three years. So we are still concentrated in Maharashtra itself and that twin Kolapur. So just wanted to understand if we are bringing to north or maybe down south are we going throughout the country or maybe how are we shaping up?
Arun Aradhya
We have no plans to expand beyond Kapur because you see there are certain benefits if you are having or your infrastructure under one roof. Like we are having three plants in Kolapur. So far as biometric bearing is concerned all these plants are within a hundred meter radius, 100 meters radius.
Aditya Menon
And Marin Alcoc also is 10 minutes away. So that is why what you see we are cost competitive. We are more efficient. That is what, that is why our margins are better than our competitors. Our top line is not very heavy. We all share responsibilities. So that’s what you say. That’s our USP as a company.
Arun Aradhya
And we can have a better exercise, better control. That’s why you can see the results and our EBITDA margins and fat margins are comparatively better in auto industry. That’s it.
Unidentified Participant
Got it. Thank you sir. I’ll join back in queue for a few other questions.
Operator
Thank you Ashwin. We’ll take the next question from Harshil Solanki. Please go ahead.
Harshil Solanki
Good afternoon. So I had one question on the EV charger side of the business. We had planned to get into the segment so have we progressed on those lines? If you can throw some light on this.
Arun Aradhya
If there is no progress, see there is no progress. Our inquiries in usas are going on. We are not, we are not got a specific and suitable manufacturer who can have a tie up with us so far as manufacturing of EV chargers are concerned only after we are fully satisfied with the other side we we will not go ahead.
Aditya Menon
And Harshila, I’d like to add it’s not only about EV charging. We are EV charging one of the prospects we’re looking at. We’re still looking at similar products where we can share the same number of ebitda same number of profit margins. So we have two, three options in our head which we are studying on. So as soon as we lock on something all of you will come to know but it’s just a new, you know, just keeping us open minded as both of us have joined.
Arun Aradhya
That there are certain products we are concentrating upon that and developing so inside story we cannot tell at this moment of time because it’s a business secret. As soon as we get to know exactly what is the market, what is the potential and considering all that we. We will go ahead and develop that item over a period of time which may take another couple of years actually
Aditya Menon
. Okay. The main reason behind it was we don’t want to miss any opportunity. You know, we want to be. We want to be ready if there is any opportunity in the market.
Harshil Solanki
Got it. And this would be under your new ventures subsidiary, right?
Aditya Menon
Yes. Yes.
Harshil Solanki
Oh, all right. This was it.
Operator
Thank you for. We’ll take the follow up question from Rohit Bhairwani. Please go ahead.
Rohit Bahirwani
Thanks again. Could you please explain us what kind of income is getting accrued in the operating income and why it is not clubbed under revenues. It is around 3 crore, I guess for the whole year.
Arun Aradhya
It has to be. Actually it should have been clubbed into the regular sales. But it has been shown as other income right from the beginning. So we have not changed.
Rohit Bahirwani
Would you share what kind of income is that?
Arun Aradhya
It is majority that come from sale of scrap.
Rohit Bahirwani
Sale of scrap. Okay. Got it. Got it. Thank you. That’s it.
Operator
Thank you, Rohit. Anybody who wishes to ask a question please use the option of raise hand. We’ll take the follow up question from Piyush Patel. Please go ahead.
Unidentified Participant
So I have follow up question. Like you’re working capital. You’re working as a critical supplier to several large companies and products. Also you are doing work where there are not many people. And hence your business is not like a commoditized product. But somehow the same does not show up in your growth. When do you see recovering in a consistent manner and on sustainable basis and what will lead lead to this revival in stronger growth rates and versus what we have seen in last two years.
Arun Aradhya
You see, there are certain other customers in element figment also there are so many other competitors. And we have seen that in spite of having a turnover of 500 crores or 1000 crores also the margins are just 3%, 4% fat margin. We don’t want to grow like that. We are satisfied with what we are doing with EBITDA margins of more than 20% and pat margins of more than 10%.
And we are satisfied with that. Instead of doing a business of 500 crores and making a profit of 25 crores let us do a business of 250 crores and make similar profit. That is good.
Aditya Menon
Just for you to understand, I would like to explain in easier words. Today we have around thousand employees and we are doing so much profit. If I have to do, if I’m growing, all the headache increases. I have a friend in Kolapur who’s turned over his thousand crore. But he makes profit as much as me. His electric bill is five times. Mine? Yeah. Three times the labor of mine loan must be even higher. So all headaches, stress, how he sleeps at night is different, you know. So it depends how you want to run your company.
Arun Aradhya
Apart from that, what I wish to tell you that so many political parties.
Unidentified Participant
Sorry, sir. Hello.
Operator
I think there’s a drop in the line on the company’s end. We just hold on for a minute. The recording has stopped.
Aditya Menon
Okay. Can you hear now?
Operator
This meeting is being recorded. Yes. Yes, sir. Please go in.
Arun Aradhya
Okay. There are certain people who are going on telling that there is tremendous unemployment. But what we see that there is a dearth of skilled workers. Maybe at Kapur as well. Maybe in Kapur only also, I don’t know. But there is no issue of unemployment as such. At the same time we are facing a shortage of employees. This is the situation.
Unidentified Participant
Okay, sir. And sir, I wanted to understand your view on revenue growth. Where do you see it sustaining and where do you see yourself in three to five years? Or in other words, by when do you expect to hit 500 crore revenue?
Arun Aradhya
You see, you can calculate if we are growing at a rate of 20%. You can calculate by which time we will be able to reach almost 500 crores. Maybe within three, three years from now.
Unidentified Participant
Okay, sir. Great. Thank you.
Arun Aradhya
Yeah, thank you.
Operator
So I think that was the last question. We have a question from Ashwin Tapari again. You can go ahead.
Unidentified Participant
Thank you again. I hope I’m audible again.
Arun Aradhya
Yes.
Unidentified Participant
All right. So just one or two more questions. I just wanted to understand. You stated about Taco. So there was an ongoing auto inspection. Has the inspection completed? Have we onboarded them as a customer? Can you confirm it?
Arun Aradhya
We have onboarded them as customers. We are even giving this a first kind of. What do you say, samples to them. But we haven’t heard about any inquiry as such.
Unidentified Participant
Okay, so it’s as in it’s not reflecting in the revenue. Not yet. The production has started, I guess. But this.
Aditya Menon
This financial. You here you see. Aqua Pressure light will develop two or three components for them for the electric vehicles. Yeah.
Unidentified Participant
Okay. And what about Bajaj Auto?
Arun Aradhya
Auto? Finally there are certain changes in their model. So because of that few more samples have been submitted to them. And probably that will be completed within a period of a couple of months from now. And that start of production will be there then. Thereafter.
Unidentified Participant
Okay. Okay. So even for this the production is yet to start, right?
Arun Aradhya
Yeah.
Unidentified Participant
Okay. And sir, just wanted to understand the land that we have. I think it was 15 acre. If I’m not wrong, 9 acre has been utilized, right?
Aditya Menon
Yeah. Around 14. 14 acres. Where 9. 15 acres. Where 9 acres has been utilized. Now we still have 6 acres for future development. So we can have even around 4 to 5 65,000 square feet sheds there. So we have a lot of land for expansion which we already invested in the past and kept. That’s a very positive sign from the company’s end.
Unidentified Participant
So. And I just wanted to understand since all the three divisions of the product Alcohol, biometal and Brie. How are we shaping up as in the market share that we have Because I understand maybe previously you have mentioned that brake segment we have a heavy competition even in other segment. But break we have heavy competition. Because you have recently ventured into this platform.
Arun Aradhya
You see biometric answers. We are having the share of 18 which may go up to 20% domestic domestically. So far as brake line is concerned. As you also know that there is a good amount of competition into that we cannot quantify at this moment of time. Similarly in aluminum there is a huge.
Aditya Menon
I will tell Aluminum sky is the limit. We are only doing 80 crore 68 crore turnover. Aqua Presto Light alone buys around 3,000 crore of aluminum castings. So aluminum there is what you say. Application in all fields. Not only engine. So now currently in alcove we are doing airport lightings. We are doing oil and pipe, oil and gas applications. We are doing oil water pumps. We are doing engine parts.
We are doing two wheeler shock absorbers. So aluminum that application is unlimited. So aluminum industry must be huge. So there’s no market share as such there are ali. There are few aluminum companies which turnover turnover is 30004000 crore. So aluminum industry the size is. You can’t say that in that we are highest value addition like you said, you know why aren’t you growing at a higher rate? If you see my competition in aluminum, all big companies they realize this in rate.
So based this is for basic understanding. Aluminum in the market average price is 200 rupees. And our selling price after doing all different value addition is 750. So our competitor is 500550 rough roughly. So that’s why our margins are better. We are trying to focus on more value addition and more technology products. So as a company we also are at the highest level of technology. And we are not not replaceable easily. If I do any average part. Then tomorrow computer tell me. Give me price reduction and change me with someone else.
Arun Aradhya
When it come. When you come to see the factory and our facilities, many of you must have already visited our factories. And you will come to know how critical parts we have developed in aluminum division. And then only you will come to know as to why there is a better value addition. And now, I hope this is the last question. And hence I request all of you to come again and see the factories. You are kindly requested anytime to come here and visit. We will be delighted to receive you. And you can see the hospitality that we offer to you. So kindly come. Thank you.
Operator
Thank you, sir. And thank you to all the participants for joining on the call. And thank you to the management team. Again, this brings us to the end of the today’s conference. You may also disconnect now. Thank you.
Arun Aradhya
Okay, thank you.