MTAR Technologies Ltd (NSE: MTARTECH) Q3 2025 Earnings Call dated Feb. 11, 2025
Corporate Participants:
Srinivas Reddy — Managing Director
Gunneswara Rao — Chief Financial Officer
Analysts:
Parth Patel — Analyst
Vipraw Srivastava — Analyst
Balamurali Krishnan — Analyst
Unidentified Participant
Nikhil Agarwal — Analyst
Ayush Bansal — Analyst
Mamta Agrawal — Analyst
Sahil Vora — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to MTAR Technologies Limited Q3 FY ’25 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistant during the conference call, please signal an operator by pressing star then zero on on phone. Please note that this conference is being recorded. I now hand the conference over to Mr Path Pateil from Orient Capital. Thank you, and over to you, sir.
Parth Patel — Analyst
Thank you. Thank you, Muskan. Good morning, everyone. On behalf of Amta Technologies Limited, I extend a very warm welcome to all participants on Q3 and nine months FY ’25 earnings discussion call. Today on our call, we have Mr Srinivas, Sir, Managing Director and Promoter; Mr Gunishwar, Chief Financial Officer; Ms Srileka, Head Strategy and IR, which I hope everyone had an opportunity to go through our investor deck and press release that we have uploaded on exchanges in the company’s website.I would like to give a short disclaimer before we begin the call. This call may contain some of the forward-looking statements, which are completely based upon our beliefs, opinion and expectations as of today. The statements are not guaranteed for our future performance and involve unfortunate risks and uncertainties. With this, I would like to hand over the call to. Over to you, sir.
Srinivas Reddy — Managing Director
Hello, and good morning, everyone. Thank you for taking the time to join us today. Today on the call, I’m joined by Mr Bunesh, Chief Financial Officer; ; Mr, Head Strategy and Investor Relations; and Orient Capital of Investor Relations Partners. We have uploaded our updated investor deck, press release and results highlights on the stock exchanges and company website. I hope everybody had an opportunity to go through the same. I’m pleased to share that this quarter we have delivered a good revenue growth of 47.4% year-on-year growth in revenue and 39.4% year-on-year increase in EBITDA. Our EBITDA margins came in at 19.1%. There shall be sequential improvement in margins thereafter due to operating leverage and commencement of volume production for MNC customers. We have also received significant orders of more than INR400 crores in clean-energy and aerospace sectors recently, strengthening our order book. So-far, this is an inflow of INR817 crores of orders across various sectors in FY ’25. Furthermore, we have received orders worth INR2.7 crores, the beginning of the relationship with Fluent synergy, which we always spoke about to exclude the proto units. And once we complete the proto units, probably by end of June, we are expected to move into the progressive growth in volumes. We anticipate to receive orders from 5 and 6 reactive soon and also from the various refurbishment reactors, almost close to five reactors which we are looking-forward to. We’re looking-forward for a very strong Q4 as well and falling in-line with the guidance given by us with INR700 crores plus revenues overall with EBITDA of 21% plus-minus 100 basis-points for FY ’25. The company has been taking strategic measures over the past years by adding several new customers and expanding the product base that will start benefiting us in the quarters to come and the years to come. Currently, we are executing first article orders for various like, and weather code, etc. We expect to enter into volume production with various customers in a progressive way starting from FY ’26. Based on the kind of work we have done over the last couple of years, looking at the future roadmap for the company, we project a 30% revenue growth in FY ’26 and similarly an equivalent kind of growth moving forward for the next two years as well with a progressive improvement in EBITDA starting at 24% for next year FY ’26 to it and 2% percentage basis-points like 400 basis-points improvement each year moving forward as well, ending up with FY ’28 at 28% EBITDA percentage based on the revenue growth and the kind of work we have been done over the past couple of years. We will be able to bounce that very comfortably with — with larger revenues and higher EBITDA margins as mentioned earlier. And we expect to enter into clear volume production for new products in various clean-energy and aerospace sectors. Now I would like to give a detailed overview across all the sectors. In clean-energy fuel cells we have executed around INR304 crores orders year-to-date comprising power units, assemblies and from Bloom. There shall be around INR100 crores of execution or more in Q4. The outlook of Bloom Energy looks quite optimistic. Bloom has signed a supply agreement with electric power for up to-1 gigawatt of its products, the largest commercial fulfillment of fuel cells in the world today. Air-powered data centers are a huge space for as per various market sources. Such AI-powered data centers are projected require 1 gigawatt power for their products. We expect to exclude more than INR430 crores in fuel cells moving forward for the next year for which we have already received majority of the orders and there could be an upside to this based on the commencement of execution of AAP orders. We continue to witness phenomenal growth in Space and MNC Aerospace division. We have delivered INR24 crores of orders year-to-date for and INR24 crores of orders year-to-date for MNC estate. We expect to deliver another INR25 crores of orders for MNC Aerer estate and INR15 crores of orders for in Q4. Our closing order book stands at INR187 crores in this particular segment at the end of Q3. We are projecting around INR125 crores of execution from MNC Aerospace and around INR50 crores of execution for in FY ’26 backed by strong and flow of orders. As you’re all aware, we have signed a long-term agreement with IAL. We have received around INR48 crores of orders so-far from this fiscal year. IR remains a key strategic customer for us and we are expecting orders for various other projects from them. Currently, as I mentioned earlier, we are working on the first particles for and also with respect to the other MNC customers and we expect to commence batch production for next fiscal years. In addition, we have executed around INR8 crores of orders for GK Aerospace in FY ’25 and we expect to ramp-up increased volumes with the commenced customer significantly from FY ’26 while we have exceeded INR16 crores of orders we have of power, we expect to execute around INR30 crores of orders in Q4. The execution of FY ’26 is projected to be around INR35 crores as we have built the work-in progress for existing orders that shall be dispatched in FY ’26. Moving on to defense, the revenue stand at INR12.2 crores year-to-date and annual execution is estimated to be around INR30 crores. This year, we have witnessed an increased inflow of orders and our defense order book expected to grow further over the coming quarters because of which we shall be explanation — we have an growth in defense starting from FY ’23. We project around INR40 crores plus of execution in FY ’26 as well. And we have initiated the execution of developmental order for combustion of engine for hypersonic. In addition, we have been declared L1 in some of the projects in which we are dealing with the defense in the recent time. Products vertical continue to register a significant growth with an execution of around INR100 crores year-to-date. We expect another INR30 crores of revenues from products in Q4 FY ’25. This vertical is projected to record revenues of more than INR170 to INR180 crores in FY ’26. We continue to improve our cash flows and our net working capital days, we have generated a positive operating cash-flow of INR102 crores, which is far, far higher than what we were able to do in the past few quarters and our NWC days have also come down to about 222 days by end of Q3, in-line with our target. We target to improve further the operating cash flows and NWC days over the coming quarters.We are focusing on strengthening our product portfolio, divesting our customer-base and improving our margins, which we believe will be reflected in our performance over the coming quarters and over the coming next few years, as I mentioned earlier. Now I will request our CFO, Mr, who will discuss in detail on the financial performance of Q3 FY ’25.
Gunneswara Rao — Chief Financial Officer
Thank you, Mr, and good morning and warm welcome to our earnings call. And I would like to extend my gratitude to all the shareholders and prospective shareholders for your continued trust and support. Today, I will be discussing key financial performance metrics for Q3 FY ’25 on standalone basis, along with our strategic priorities around expansion into product — potential growth sectors, increasing value share of existing customers, cost optimization and operational efficiency.
Now the financial performance Y-o-Y Q3 FY ’25 versus Q3 FY ’24, revenue from operations stood at INR174.5 crore in Q3 FY ’25 as against INR118.4 crore in Q3 FY ’24, reflecting a 47.4% year-on-year growth. EBITDA was INR33.3 crore in Q3 FY ’25 compared to INR23.9 crore in Q3 FY ’24, registering a 39.4% increase. Profit before-tax stood at INR21.4 crore in Q3 FY ’25, up from INR12.9 crore in Q3 FY ’24, representing 66.3% growth.
Profit-after-tax increased to 52.8% year-on-year, reaching INR16 crore in Q3 FY ’25 compared to INR10.4 crore in Q3 FY ’24. However, when it comes to the strategic focus and operational improvement, as we continue our strong growth trajectory, we anticipate further improvement in EBITDA margins from Q4, supported by operating leverage and increased revenue scale. However, the company has been strengthening its financial position with a reduction of INR10 crore long-term debt, bring it down to INR142.4 crore to INR132.5 crore. The total repayment Obligation for FY ’26 stands at INR46 crores. Cash-flow from operation was robust at INR102 crores in Q3 FY ’25, significantly outpacing FY ’24’s total annual cash-flow from operations of INR57.4 crores. The improvement was driven by efficient working capital management with INR58 crores generated through reduction of receivables and increasing payable days. The net working capital to revenue days stood at 222 days, which is in-line with our targeted working capital days by end of FY ’25. When we — as explained by our MD in detail. So we are in exciting growth phase as of now. We’re actively expanding our market presence and strengthening our position across multiple sectors. Under the leadership of our MD, the company is focusing on key strategic initiatives to drive the growth and risk mitigation, including expanding our customer-base, increasing wallet share of our existing customers and we are commissioning 100% of installing the equipments in aerospace facility in Hyderabad to cater the growing demand in this sector. Also, we are venturing into oil and gas and battery storage systems and we are expanding our presence in aerospace in a big way and also other priority sectors to diversify our revenue streams. So looking ahead, we remain committed to sustaining EBITDA margins in the range of 24%, supported by an anticipated 30% revenue growth in FY ’26 compared to FY ’25. Thank you. So with this, I open the floor for discussion and welcome any questions you may have. Thank you everyone for your time-and-time. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask questions may press charg in one on the telephone. If you wish to remove yourself from question queue, you may press charg in two. Participants are requested to use hensors while asking a question. Thank you. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question is from the line of Srivasto from PhillipCapital. Please go-ahead.
Vipraw Srivastava
Hi, I’m audible, right?
Operator
Yes, sir.
Vipraw Srivastava
All right. So sir, you on the guidance, you provided for 30% revenue growth. Can you just say how much we expect the upstream as you will grow in FY ’26. Ohh, hello. Hello, can you repeat your question, please? Yeah, what I was saying was sir that you have guided for 30% revenue growth in FY ’26. How much you expect the clean-energy business to grow Y-o-Y?
Gunneswara Rao
So see, basically, we are looking at a conservative estimate of 30% revenue growth, not only for FY ’26, but the kind of work we have done over the last couple of years with various customers in terms of first particles, not only in clean-energy, but also in aerospace, we would expect a similar revenue growth over the next three years with improved EBITDA margins. As I said, starting from 24% to 26 — we end-up with 28% by FY ’28.
Now clean-energy segment looks very comfortable number whereby the Santa Cruz boxes have been streamlined. We’re adding more wallet share into the system with the customer as well. So we’re looking at almost close to about INR500 crores plus in terms of sales that we will be doing with respect to clean-energy for the next year.
Vipraw Srivastava
Okay, sir. And sir, in terms of hot boxes, how much will be?
Gunneswara Rao
See, hot boxes would be close to about INR470 crores and odd for next year.
Vipraw Srivastava
Okay. Okay, sir. Fair point, sir. And sir, secondly, since you are seeing a quick ramp-up on the aerospace and defense side, so I mean, what kind of numbers you are seeing in this business ramping-up FY ’27, is that correct?
Srinivas Reddy
Yeah. So basically we have with some of the customers we have already into the — we ramped-up into the volume production and some are we are doing cost articles as well. So it will be mix of cost articles and volume production for FY ’26 and FY ’27, you would really see a major volume breakthrough, especially in the MNC aerospace sector since our — even our new plant is getting commissioned by end of this month.
Vipraw Srivastava
Any number to that if you can give? I mean I’m not guided but what’s the trend range you are looking at in FY ’27 for A&D?
Srinivas Reddy
For which one? For aerospace and defense, A&D?.
Gunneswara Rao
So Aerospace and defense would really drastically improve. Like for example, next year, we’ll be doing around close — only in MNC Aerospace itself will be doing about INR125 crores next year, which is a phenomenal growth, right? And that’s a combination of first articles in volume production and then FY ’27 will be much larger than that.
So that’s where we stand as of now. And all these efforts, I would appreciate my team that have done a great job, especially in the last one, one and a half years to actually build this vertical. And also we are getting certified by NASCAP and also by the various MNC customers for our special processes and for our new plants, aerospace plants as well, which is very critical for aerospace.
Vipraw Srivastava
Right. And sir, the global dealer is also helping, right? I mean, the whole aerospace and different industry has been a tailwind because of these. So that also helps, right?
Srinivas Reddy
Yes. Yes, definitely.
Vipraw Srivastava
Yeah. Sure, sir. And sir, lastly, on the nuclear orders, so when you extend to get them the nuclear orders?
Gunneswara Rao
Look, there are two types of orders that we are expecting, which I would like to explain. One is on the 5 and 6, recently, the — I think the LOA has been given to mega engineering for 5 and 6. So hopefully we’ll be having those orders coming in probably by end of March or beginning of next quarter, that’s the major orders, which I’ve said at least INR500 crore to INR600 crores.
And then there are five refurbishment reactors where tenders are getting floated shortly. I don’t want to get into the numbers there because of being a tender, open tender, but substantial orders that will flow-in over the next three to six months. So overall, we are expecting close to a — in history never happened, but finally, it’s happening now close to about INR1,000 crores of orders which can flow into MTR over the next six months.
Vipraw Srivastava
Okay, sir. And sir, last question from my end. Government of an act called liabilities Act, which was repealed by Government of India for nuclear sector. So now foreign governments can also participate in the India nuclear stories. So do you see any impact of that positive or negative? What’s your take on that?
Gunneswara Rao
It has to be positive. See, basically we have enough on our plate with our domestic nuclear reactor, right? Reactors, what we’re working on and other specific research projects that we’re working on right now. So any MNCs who would like to participate, obviously, MTAR will contribute to them in a big way. So let’s see how it happens. So I’m — as it is, we have enough on our plate right now with our own reactors, which are being expected to come more-and-more fleet reactors needed to come.
So we are actually thinking of having an exclusive you know plant for the nuclear division as well, the kind of orders which are flowing in into the company.
Vipraw Srivastava
Thank you, sir. Thanks a lot.
Operator
Thank you. The next question is from the line of Bala Murali Krishna from Oman Investment Advisors. Please go-ahead.
Balamurali Krishnan
Hi, good morning, sir. Congratulations on good numbers, sir. So on the electrolyzer parts or so in the — from the blue order, do we have any electrolyzer order also or it is all about the hot on?
Srinivas Reddy
No, electrolyzers would take some time, as I said earlier, but as of now, we have enough on our plate in terms of the regular hot boxes that we’re doing for them and also adding additional wallet share into their — they are more slowly moving into the SME part of the business with Bloom. I know that’s going to add more wallet share into the system.
So that’s what I’m trying to explain. So whenever that has happened, we have already proved it. We have exported to Bloom, they have also proved it to the customers. So hydrogen is something which would take little time, but it will happen. So I wouldn’t be able to comment much on that right now, but if it happens, it’s great. So let’s see how it goes.
Balamurali Krishnan
Yeah, sir. Then some electrolyzer manufacturers are participated under that PLI scheme for manufacturing the electrolyzer, sir. Whether that is the kind of businesses are different from us or We are also eligible for that 100, do you want to participate in that PLI or not?
Srinivas Reddy
No, we can. As and when we get the orders and how we can progress not only for supplying within India and internationally, then probably, yes, we can do that.
Balamurali Krishnan
Okay. And then on nuclear parts are — so we are expecting INR1,000 crores of orders in the maybe next 12 months. So what kind of capex is required to execute those orders of how much amounts are running.
Srinivas Reddy
So we already have the capacities in-place for. We have been doing for last 35 to 40 years. So except for few bottleneck machines here and then to address that kind of orders, we are fine with that
Balamurali Krishnan
Okay. Okay. And lastly on this batch production, the mass production, so we have supply — we are going to — we are supplying first articles to the customer. So how much of revenues we can expect from this mass production for this first article in this next fiscal year, FY ’26.
Srinivas Reddy
That’s what I said. We are looking at almost like INR125 crores of revenues coming in from MNC Aerospace itself for next year, based on a combination of first articles and batch production for FY ’26. And then for FY ’27, it will be much higher number because we have established the first articles for some more customers.
So we are focusing on growing the aerospace sector in a very big way and our new plant also is getting commissioned by end of this month. So that’s a very positive trend and a lot of effort has been done over the last 1.5 years to get where we are today. And also all the certifications of NATCAP are in-progress. We also got NATCAP certification recently for treatment process and special process. I think hopefully we should get it by April.
So we are on-track with all this and all these are the efforts of the last 18 months what we have done.
Balamurali Krishnan
That’s all my. All the best. Thank you.
Srinivas Reddy
Thank you.
Operator
Thank you. The next question is from the line of Valas from Capital. Please go-ahead.
Unidentified Participant
Good morning, sir. Congratulations for a good set of numbers. Sir, I just want to understand about import content for our raw-material side and you mentioning about 28% kind of EBITDA margin by FY ’28. What are the key triggers to achieve those margins.
Srinivas Reddy
See, the most important thing is as we have been investing on our team leadership over the last one year and that’s looking at the future growth of the company. And as when the revenues grows, our employee benefit expenses will drastically drop. We have been investing ahead of time for that. Obviously, we need to do that. We’re looking at the future roadmap for the company.
And also our margins would improve more because we are diversifying into aerospace and we’re doing more of the nuclear division orders which are of higher margins and we have better operating leverage with volume production with various MNC customers that we are working on right now.
So by FY ’28, you would see a comfortable 28% kind of EBITDA margins based on all this work that we have done in the recent past for the future growth of the company and to achieve better EBITDA margins moving forward.
Balamurali Krishnan
So as the import content, sir
Srinivas Reddy
It’s what
Balamurali Krishnan
Import content any target to achieve?
Srinivas Reddy
Import content see imports we do a very few import contents like and all those raw materials that we import but most of the materials trying to localize it and trying to buy from various companies within India as much as possible. But some of the — moving forward, we’ll also evaluate and see how much less we can import the company can benefit better and better, especially with the forex fluctuation that we have today?
Balamurali Krishnan
Okay, sir. Sir, like a new vertical areas like oil and gas, I think we have started executing on first particles. And how do we see in this business over next two to three years? And you have mentioned about the battery storage systems. So if you could throw some light on that, how funny — what are the opportunities we have?
Srinivas Reddy
See, one is on the battery storage systems, we have been talking about fluent synergy for quite some time, but fortunately, finally, we are designing and developing along with them the new battery storage systems for them, which we have received the purchase orders already. And that we’re hoping that by June, we’ll be able to complete all the prototypes and then we slowly move into volume production. But you will see the real ramp-up happening, which will be close to about INR20 crores plus in FY ’27 with respect to the battery storage systems as well.
So this is the kind of growth they are looking at. A lot of effort is being made in terms of getting qualified and moving towards the growth phase for the next few years. And what was the next question on the oil and gas. We already received the purchase orders for the first articles, which we are doing now.
We are establishing an exclusive plant for oil and gas, which will translate into a volume production from FY ’27, partly in FY ’26, but mostly in FY ’27, close to about INR150 crores to INR180 crores in the first year FY ’27 and then we move on to close to about INR250 crores in FY ’28. So that’s the kind of planning we have done in terms of how to achieve our growth parameters in various divisions that we’re working on right now.
Unidentified Participant
Thanks. Okay, sir. Sir, I think in nuclear side, we have seen a lot of good announcements from the and sir, what’s the update on this 5 and 6 nuclear reactor orders? I just mentioned it right now that we can expect those orders sometime by end of March or beginning of next quarter, which are substantial more than INR500 crores plus. And there are also another five refurbishment reactors tenders are being ported in a month or couple of months. So we’re expecting close to about overall INR1,000 crores worth of nuclear orders coming in over the next three to six months. Okay. Sir, just a bookkeeping question. What is the cash balance and debt side for Q3., can you answer that next? Yeah, our long-term debt is INR132.5 crores and the cash is INR25 crores we have that also we received on the last working day financial year. And another INR20 crores we kept as a deposit for the bank guarantees, 10% margin money got it, sir. Thank you.
Srinivas Reddy
Thank you.
Operator
Thank you. The next question is from the line of Nikhil Agarwal from Kotak AMC. Please go-ahead.
Nikhil Agarwal
Good morning, sir and thanks for the opportunity. So just wanted some clarity on the guidance that you have given for FY ’25, if you could repeat it, it is a bit emptier.
Gunneswara Rao
Yeah, sure. So FY ’25, you said we’ll achieve revenue of revenues of about INR700 crores plus with EBITDA margin of 21% plus-minus 100 basis-points. That’s what I have mentioned earlier, which are — we are on-track with what we have said earlier and which will have a better Q4 will be much better than Q3 as well. And then the margins also to maintain that margins, we would be expecting close to EBITDA margin of 24% for Q4 is what we’re looking at, it’s plus-minus 100 basis-points.
So that’s all we’re able to achieve the overall annual margin guidance what we have given and the revenue guidance what we have given. And moving forward, FY ’26 to FY ’28, based on what I’ve explained earlier in the call, with the various projects and qualifications that we are going through, we are expecting a comfortable revenue growth of 30% year-on-year basis consistently for the next three years and with improved margins of 24% in FY ’26 and then moving on to 26% in FY ’27 and stabilizing at 28% in FY ’28.
Nikhil Agarwal
All right. Understood. And sir, you mentioned INR1,000 crores of orders in FY ’26 from nuclear only right, which includes the refurbishment as well as Kaika orders?
Srinivas Reddy
Yeah. Yeah, that’s right. So basically, you have the order breakup from 5 and 6 and also there are five reactors which are coming into refurbishment, which MTAR specializes in that. One is two reactors of Tarapur, one in Rajasthan, one in as well and other one is in reactors. So basically there are five reactors which are getting into refurbishment mode. So all these together, we have enough on our plate over the next six months, knowing the procedures within three to six months, we’ll have this INR1,000 crores of orders going into the company. That’s the latest update that we have on the news.
Nikhil Agarwal
The refurbishment orders, how much time would that take to actually generate translate to revenue.
Gunneswara Rao
So it’s about 18 months. So what you’re looking at here is what’s most important is all these orders have to be executed in a three-year period. If you look at 5 and 6, it’s a fast-track project which Government of India is looking-forward for, right? That’s all they are structured on one company and then subcontracting it. So overall, if you look at it, refurbishment reactors
Srinivas Reddy
Are 18 months and the 5 and 6 is maximum of three years. Three years.
Nikhil Agarwal
Yeah, all right. All right. And sir, lastly, on the
Srinivas Reddy
Major revenue growth happening, by the time these orders come in, we get the raw-material and all that. So you’ll see us part of the revenues growing in FY ’26, but a majority of the revenues will kick-in FY ’27 and ’28.
Nikhil Agarwal
Right. And sir, lastly, any impact of deep seek on the Bloom data center business? Have you heard anything from them regarding this?
Srinivas Reddy
Absolutely not. And I have not heard anything of that. In fact, not only they are looking at improved volumes, which they will keep updating us from time-to-time. And also they are also increasing — we are increasing our wallet share within — moving into the assembly mode as well with us. So there is no such information of any impact as far as data centers are concerned. Because as far as I remember in the previous calls, you’ve mentioned that the next big trigger for growth for Bloom would be the data center business.
And with deep seek coming in, I’ve read that it’s a major threat to data centers all over — all across the world. So that’s why I was a bit curious about this. So no, I — that’s not going to really affect the way Bloom is moving forward with the data centers, especially kind of orders that we see. And they have not — they’ve held back a lot of information because they are expecting a lot more orders kicking into the system over the next couple of quarters is what I have heard.
Nikhil Agarwal
Yeah, okay. Okay, sir. That’s it from me, sir. Thank you so much.
Srinivas Reddy
Thank you.
Operator
Thank you. Before we move to the next question, a reminder to all participants, you may press charg and when to ask questions. The next question is from the line of Ayush Bansal from Nivesha Investment Advisors. Please go-ahead.
Ayush Bansal
Hi, am I audible, sir?
Srinivas Reddy
Yeah, you are audible. Please go-ahead.
Ayush Bansal
Good morning, sir. Like I would also like to ask about the Kaira 5 and 6 nuclear reactor. Like in the previous con-call, you mentioned that has exclusive capabilities in 14 packages. So can you tell us more about those areas and does no other company has these capabilities to execute those areas?
Srinivas Reddy
And see, there are two aspects to it. One is on the capability side, MTAR is obviously rated number-one in all the sporting packages. There are a few companies which in few of the packages, they can get qualified, which is listed in the tender. But what is most important is the execution time because these are fast-track projects with a lot of LDs which will get imposed on the main contractors.
So it’s important that these projects have to be executed, especially CAGA 5 and 6 on a fast-track basis within the given timeframe. So we have proven in the past that we have done projects where NCCL has given us three years we have done in one and a half years to two years or even less. So we have a major advantage in terms of execution of these projects, if you look at the overall bigger-picture of the entire project as well. So that’s why we are pretty confident of backing — getting these orders through over the next couple of months or three months.
Ayush Bansal
Okay, sir. And as we know that these are the first two reactors in the line of 10 reactors to-be-built in India. So can we expect similar orders for other reactors as well?
Srinivas Reddy
Yes, definitely yes. And either they — it might be direct orders or it can be indirect. So it all depends on how will look at it. But definitely, yes, we are part of the whole-system in which we are part of the whole nuclear four reactor technology, which we have excelled over the last 30, 35 years, we definitely will be part of the future we have such as well.
Ayush Bansal
And sir, will MTAR benefit from the INR20,000 crore being allocated by government for nuclear sector in this budget?
Srinivas Reddy
Yeah, definitely, yes, right. So whatever nuclear reactors, the government should allocate the budget, but there is a timeframe for everything. So it depends on how the tenders are floated and how it is done, when it is done. So obviously, if you look at a three to five-year roadmap, we’ll have enough order book from the nuclear division that’s what this country needs and MTAR has always worked along with NPCL to develop all these nuclear reactors over the last 30, 35 years. We worked jointly on the four reactor group, fuel group. So basically MTAR is going to get benefited based on how it moving forward.
Ayush Bansal
Okay, sir. And any update on the roller screws segment?
Srinivas Reddy
Roller screws have already been qualified. In fact, probably from next month or so, they might have this import substitution done certified with us. And once that is done, we are through with it. So it’s a process by itself. They do various tests. Right now, the final tests are going on. It’s already through what they have told me. So once that is done, then it gets the — the role is through from Sweden will be stopped. Government of India will stop importing it and they will — it will be an import substitutes where MTI will start supplying the role exit for all the requirements.
Ayush Bansal
Okay, sir. Thank you. That’s all from my side.
Operator
Thank you. Thank you. Thank you. The next question is from the line of Mamta Agarwal from ABS Investments. Please go-ahead.
Mamta Agrawal
Hi, thanks for the opportunity. I have a couple of questions. Starting the received orders, which we have received can as well as see whether post article orders like no, your voice is breaking and too much of. Can you repeat your question, please? Hello. Am I audible now?
Srinivas Reddy
Yeah please go-ahead.
Mamta Agrawal
Can I have a my question is regarding the recent orders, which we have received from him as well as other first-line articles from that report. So if you could give a sense of what’s the quantum of recurring orders which we are expecting from this first article order IAC will be?
Srinivas Reddy
Whatever I could hear from you, you’re talking about the first article orders from IAI,,, etc. Cetera. So basically IIL we have signed a very long-term agreement with them for 15 years, which we have mentioned earlier as well. We already received orders for about INR28 crores to INR30 crores of orders from for first articles to be done from various project groups.
Similarly with GKN, we are doing a combination of volume production plus further projects we’re doing first articles. Right now, we are doing the first article. So what it translates to is a much higher number moving forward. I know we are — that’s what I’ve explained earlier. If you look at code, we’re looking at INR150 crore to INR250 crores of volume production over the next three years, year-on-year basis.
Similarly with, we’re looking at more than INR100 crore 150 crores doing execution of the projects. Is close to about $10 million. So these are all the efforts of the team over the last 18 months-to see where we are today. So today, we are pretty confident of looking at the company where it is going over the next three years with a consistent revenue growth of 30% year-on-year basis is the reflection of what we have done in the last 1.5 years to build the various other verticals and with improved margins as well.
Mamta Agrawal
Okay. Okay. Just a follow-up on this. So I’d like to comment, let’s say like competitors? And like yes, of course, I will continue to get more based on the. I’m really not able to hear you well. There’s a lot of disturbance noise. I didn’t get the question. I was asking about what are our efforts to get more orders from
Srinivas Reddy
From more orders from where?
Mamta Agrawal
From the?
Srinivas Reddy
From LL repeat that
Mamta Agrawal
More orders from this first-line article is there and
Srinivas Reddy
Yeah, see, it’s a process. I understood you now. The MNC business, as I said, we are working with various MNC customers. In fact, we had number of business, number of — I’m not even talking about those customers right now because as and when we move forward, we’ll be adding more of the first particle orders with various other customers as well.
Mamta Agrawal
Thank you.
Operator
Thank you. Thank you. A reminder to all participants, you may press and one to ask question. The next question is from the line of Ayush Pansal from Nivesha Investments Advisors. Please go-ahead.
Ayush Bansal
Sir, can you just broadly line out the margins, which we have in the hotbox segment, Nuclear and aerospace segments.
Gunneswara Rao
See the –, you want to explain that?
Srinivas Reddy
Sir. The margins — the Margins across all divisions, we are pretty much having similar margins. So less than 20% margins we don’t take normally. But in case of space, we have little bit more margins, say, around 5% to 7% because of the free issue raw-material. Like some four, five years, three years back, maybe Bloom is lower-margin compared to — but today with operating leverage, Bloom is also in-line with the other margins, even domestic also in EBITDA margins I’m talking. So gross margins may be lower in case of Bloom, whereas domestic gross margins are higher. So across all business, we have pretty much the same EBITDA margins. So, sir, the margin for Yuma hot boxes and Santa hot boxes are in the same line., same line because it is almost 95% the same only. There is not much difference in terms of the pricing and also in terms of the bill of material.
Ayush Bansal
Okay. Okay. Okay, sir. Thank you.
Srinivas Reddy
Thank you. Thank you.
Operator
Thank you. The next question is from the line of Sahil Vora from M&F Associates. Please go-ahead.
Sahil Vora
Good. Good morning, sir. Thank you for the opportunity and congrats on the good set of numbers. My first question is, we have been trying since a few quarters to bring down our working capital days close to 200 odd days. But then it’s suited to 250 odd days. How do we see the same in the near-future since now we have completed the first order articles for few of our customers?
Srinivas Reddy
Actually our working capital days for this — as of December is 222 days and we have projected around 225 days by end of this financial year. We are trying our best to reduce their inventory levels, increase the payable days, but as you know, since we are in various sectors and also the credit terms with the customers of Bloom and other things, so we are planning in the long-run, we wanted to reduce to 175 days, so maybe FY ’27 onwards, but 200 days is required because of the various projects and the increase in revenue, 30% increase in revenue we are projecting in FY ’23. But as of now, 222 days is our working capital days. Not 250.
Sahil Vora
Okay, understood. Got it, sir. Sir, my next question is, where do you — where do we see our debt levels going ahead? Do we foresee a reduced debt levels as we move ahead or are we largely comfortable at the current level? If you can shed some light on that?
Srinivas Reddy
See, our debt levels are very low like INR132.5 crores is only long-term that we have. Every year repayment obligation is INR46 crores. So we have for next two years. After that, it is 25 or so because of some loans we are repaying in next two years after that some other loans are there. So 132 is not a big number because of the growth.
See, all this establishment of aerospace sectors, fabrication, sheet metal last two years, we have lot of internal accruals we have put in this — in the company. So definitely, our aim is to reduce the debt. And again, as and when suppose the oil and gas we are doing the first articles now. And as and when this — once we sign the contract, we get the orders for the batch production, we will have to incur separate hanger for that.
As explained by our MD earlier, we are setting up a new facility for the oil and gas sector. So for which I think around INR60 crores to INR80 crores of capex required to set-up at 100%. But that is not going to be incurred in a same immediately next financial year, starting of the financial year. So over the next nine months, we will incur that money and some of — and also some of the — there is a bottle across all the plants and also sustenance capex is required for us.
So next year, we are planning to take a debt of around INR60 crore to INR80 crores for the oil and gas and other areas and remaining we will spend from our internal accruals. We repay INR46 and take maybe INR60 crores to INR80 crores of debt. So incremental debt maybe INR25 crores or INR30 crores next year. But the most important thing is we have put lot of internal accruals in the system over a couple of years for our growth projections.
Sahil Vora
Thank you. Okay. Thank you. Thank you so much, sir.. That’s it from my side.
Srinivas Reddy
Thank you.
Operator
Thank you. Ladies and gentlemen, in the interest of time, we’ll take this as a last question. I would now like to hand the conference over to Mr Srinawal for closing comments. Over to you, sir
Srinivas Reddy
Thank you very much thank you everyone for joining the earnings call today. And as I mentioned earlier, we are in a definitely a very nice space right now in terms of what we have done over the last 18 months-to ensure that we have a consistent growth moving forward over the next few years and we’ll continue to make our best efforts to improve our margins, as I mentioned earlier, year-on-year basis and also to adhere to the revenue projections what we have given as guidance over the next few years. Thank you so much.
Operator
Thank you. On behalf of Emta Technologies Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you