MTAR Technologies Ltd (MTARTECH) Q3 FY23 Earnings Concall Transcript

MTAR Technologies Ltd (NSE:MTARTECH) Q3 FY23 Earnings Concall dated Feb. 10, 2023.

Corporate Participants:

Srinivas Reddy — Managing Director and Promoter

Gunneswara Rao — Chief Financial Officer

Analysts:

Irfan Raeen — Orient Capital — Analyst

Deepak Krishnan — Macquarie — Analyst

Mohit Kumar — DAM Capital — Analyst

Anika Mittal — Nvest Research — Analyst

Renu Vaid — IIFL Securities — Analyst

Renjith Sivaram — Mahindra Manulife Mutual Fund — Analyst

Sandeep Tulsiyan — JM Financial — Analyst

Neerav Dalal — MayBank Investment Banking Group — Analyst

Jonas Bhutta — Birla Mutual Fund — Analyst

Aman Vij — Astute Investment Management — Analyst

Mahesh Bendre — LIC Mutual Fund — Analyst

Abhishek Agarwal — Naredi Investments — Analyst

Sanjana Deshpande — StockAxis — Analyst

Presentation:

Operator

Ladies and gentlemen, good day, and welcome to the Q3 FY ’23 Earnings Conference Call of MTAR Technologies Limited. As a reminder, all participant lines will be in the listen only mode. And there is an opportunity for you to ask questions after the presentation concludes. [Operator Instructions] Please note that this conference is being recorded.

I now hand the conference over to Mr. Irfan Raeen from Orient Capital. Thank you, and over to you, sir.

Irfan Raeen — Orient Capital — Analyst

Thank you, Michelle [Phonetic]. Good morning everyone. Myself, Irfan Raeen from Orient Capital. We are an Investor Addition Advisor to the company. I hope all of you and your families are safe and healthy. On behalf of MTAR technologies, I extend a very warm welcome to all participants on Q3 and nine months FY ’23 financial discussion call.

Today on the call we have Mr. Srinivas Reddy, sir MD and Promoter, Mr. Gunneswara Rao sir, CFO and Ms. Srilekha Jasthi, Manager Strategy and Operation I hope everyone had an opportunity to go through over investor deck and press release that we have uploaded yesterday on exchanges and on company’s website.

I would like to give a short disclaimer before we start the calls. This call may contain some of the forward looking statements which are completely based upon our belief and opinion and expectation as of today. This statement are not guarantee of our future performance and involve unforeseen risks and uncertainties.

With this, I hand over the call to Srinivas sir. Over to you sir. Thank you.

Srinivas Reddy — Managing Director and Promoter

Thanks. Thank you, Irfan. Hello and good morning to everyone. Thank you for taking the time to join us today. Today in the call, I’m joined by Mr. Gunneswara Rao, Chief Financial Officer, Srilekha Jasthi, Senior Manager Strategy and Operation and Orient Capital, our Investor Relations partners. We are uploaded or updated investor deck [indecipherable] highlight some stock exchanges and company website. I hope everybody had an opportunity to go through the same.

I’m pleased to inform you all that the company continues to deliver strong growth in top line and bottom line. The company has clocked a revenue of INR160 crores within an EBITDA of INR45 crores, and a part of [indecipherable] of INR31 crores. I would like to give a brief overview on the security performance and the future of the company. The company raised a very significant growth in the [indecipherable], which is definitely unexpected. And we have done much better than the previous quarter as well.

We have generated revenues close to INR125 crores in this segment. We also comments the our operations as you all know sheetmetal work is still here and will continue to get qualified for many SMEs moving forward as well. We have already dispatched close to about INR25 crores of sheetmetal assemblies and enclosures have been approved. And the factories are getting comments this quarter. The company has done significantly well in delivering 1430 units of [indecipherable] boxes and 20 units of equalizers this quarter which is significant, almost averaging 500 units per month.

And we also started receiving enough orders in the Haidle sector as well from reputed companies like GE or Invoice. We’re expecting to find is various discussions with some of the leading MNC companies in the US for the energy storage systems, which will come into effect next year, which would substantially increase our revenue base in a completely different sector under Clean Energy segment. We also initiated discussions with various other elementary things like panels, calling service space, and various other events we’ve done and we have also received orders from few of them as of today.

As we’re all aware that you have signed a MoU with Indian National Space Promotion and Authorization Centre is called IN-SPACe for design and development of Two Stage to Low Earth Orbit All Liquid Small Satellite Launch Vehicle. We were really excited with this design as already started for this particular innovation that we’re working on. And the company’s in the process recruiting industry looking for the last big project and a bit short of time.

We expect — as I mentioned earlier, we are given a revenue guidance of the 50 to — 55% to 60%, and I would like to provide some support based on our very strong Q4 also coming up, with revenues of between INR570 crores systemic gross revenues being generated for the entire year, its current financial year, which is a substantial increase compared to the previous guidance what we have given, and also having trying to maintain the EBITDA margins around 29% with plus minus 50 basis points. We’re also expecting our order book which is very strong, closing order book of close to about INR1,200 crores — INR1,000 crores what we have mentioned earlier.

And one of the most positive order take also on the management front is that we have appointed a new Chief Operating Officer Mr. Rajshekhar Bellampalli [Phonetic], he has a vast experience in operation across geographies and global OEMs like Clean Energy, Port Water etc, the companies that achieve greater milestones under his leadership as well. Also we are strengthening our management bandwidth across all functions, which we been a continuous process to be in line with our activities growth path.

Further, we would in FY 2024 we have maintained very good growth momentum, which 45% to 50% revenues and we sustaining our margins very comfortably. The company specifically is also facing efforts to reduce their working capital base, which our CFO would explain it more clarity. Technically, we are at about 240 days right now which is lower than last quarter. And in fact we reduced it further 220 days kind of this year.

With this I would hand over you to CFO, Mr. Gunneswara Rao to take over from me. Thank you.

Gunneswara Rao — Chief Financial Officer

Thank you Mr. Srinivas Reddy. Good morning everyone and warm welcome to our earnings call today I will take you through the financial performance post which we will open the floors for the questions and answers.

So coming to our revenue. So revenues for the nine months period is INR377 crores which is higher than the last enter financial year INR322 crores, so we have passively — revenue EBITDA prior to existing in terms of absolute numbers compared to last financial year — entire financial numbers. So our members, our revenue from operations for this quarter is INR160 crores, as against INR126 crores in q2 FY ’23, which is 27% increase in — and quarter-on-quarter basis.

EBITDA reported to INR45 crores in Q3 FY ’23 as compared to INR35 crores in Q2 FY ’23, which is 29% increase and on quarter-on-quarter. Profit before tax stands at INR42 crores in Q3 FY ’23 as against INR33 crores in Q2 FY ’23, which is 27% increase on quarter-on-quarter basis. Profit after tax was at INR31 crores in Q3 FY ’23 as against INR25 crores in Q2 FY ’23, which is 27% increase on quarter-on-quarter basis.

Our networking capital days stands at 287 days. However, INR39 crores was received from Bloom Energy on 7th of January on account of Christmas holidays. This has resulted in 39 days increase in working capital base. The working capital base would have been 248 days had it been received in December ’22.

So when it comes to receivable, out of INR241 crores of receivable INR195 crores are current and the rest of the receivable are within the credit period extended to the customers.

And as informed by our MD, we will maintain a closing order book of around INR100 crores by end of this fiscal year. Our order book as of 31st December stands at INR1,183 crores. So the company has received INR893 crores of order in various sectors including clean energy, civil, nuclear, solar, fuel cell, vital sector as on YTD 31, December ’22.

So — also, we are set to deliver the strong performance in FY ’24 as well. As the revenue ramps up, we are expecting to maintain those sustainable margins due to operating leverages. In addition as discussed by our MD, addition to Mr. Rajasekhar Vanapalli to our leadership, as he’s expected to propel our growth further.

So with this, I open the floor for discussion.

Questions and Answers:

Operator

Thank you very much sir. We will now begin the question-and-answer session. [Operator Instructions] The first question is from the line of Deepak Krishnan from Macquarie. Please go ahead.

Deepak Krishnan — Macquarie — Analyst

Hi, sir. Thank you for the opportunity and congratulations on a good set of number. I just wanted to first understand this additional INR140 crores order that we’ve said that we’ve got this quarter, like, which segment and which key client, if we can highlight that?

And maybe just on your revised revenue guidance of INR570 crores that implies that these are the lower end of 77%. So, what’s really driving this growth and which is a segment that really stands out in Q4?

Srinivas Reddy — Managing Director and Promoter

Thanks Deepak. So, as I said earlier with INR140 crores, which actually I should have mentioned in my earlier speech, one good news is that in our product portfolio division, we had got qualified for the ASCs, which is one of our products, which we are working on. And based on the qualification and the position patch production, we have received an order INR100 crores for this product itself.

Technically support requirement INR130 crores per year is a great addition to our revenue base. And I would really congratulate my R&D team for being able to achieve this in hardly about four to five months time. So the product was approved and we were able to get this order as well. And the rest of the orders are from Heidel and other segments that we are holding right now. So these order we are expected to come in the previous quarter, but they have come in early Q4 itself. So that’s why we’ll have to highlight that for all you at this time.

Now coming to the revision on the guidance numbers, based on the — what we have achieved in Q3 and what we’re almost at the middle of February right now, we have a clear path in which we can confirm — with the confirm we can say that we were able to achieve anywhere between INR575 crores to INR600 crores of revenue base by any means for this year which is fine. It’s almost like close to 80% 85% compared to the previous year.

And the growth is primarily coming not only from the last quarter, it is going to be stronger, not only from the Q3 area, but also in terms of the new products that we have received the order, and as well as the revenues that we’re going to catch up in terms of nuclear and space as well in the last quarter.

Deepak Krishnan — Macquarie — Analyst

Just for the clarity the AFC essentially for Bloom Energy right, if I’m — my understanding is correct.

Srinivas Reddy — Managing Director and Promoter

Yeah, exactly. That’s, right.

Deepak Krishnan — Macquarie — Analyst

Yes. So maybe just a follow up question, then on essentially margins. So do we still kind of stay confident in the 29% range? Like because essentially, we slightly below for a nine month basis? So you know, I think would it be the nuclear in space sort of helps catch up with margin, just any thoughts on that?

Srinivas Reddy — Managing Director and Promoter

Yes, we would probably maintain around 29% plus minus 50 basis points at the end of the financial year. Because we are — maybe getting lot of sales coming in from Nuclear and space as well as this quarter. And based on the revenue that we generate for the fourth quarter, we are pretty confident that we’re able to have this kind of margins for the entire year.

Deepak Krishnan — Macquarie — Analyst

Sure, sir. Maybe just one last question from my end. I just wanted to understand essentially, you know, your working capital days, you’ve sort of received this INR39 crores audit on Jan 7, but what is the glide path that kind of takes us to 220? Is it more of receivables you sort of converting that into cash, is it inventory management because I see your comments that there’s a higher inventory basically due to a Q4 revenue that are going to book. So, maybe just any incremental points on how you kind of end up closer to 220 days in terms of working capital.

Srinivas Reddy — Managing Director and Promoter

Here you want to Gunneswara [Phonetic]

Gunneswara Rao — Chief Financial Officer

Thank you for question. See this because of the Christmas holidays in USA, we received one week later — late on this Bloom Energy receivable as of today, we are 248 days and looking at the higher guidance given by our MD. So, definitely I think we can able to maintain the working capital base around 225 days by the end of this financial year. We are doing lots of steps in terms of reduction of working capital, but as you know, we are working on the long cycle project for which there is a Made to Order scenario we are working. We need to maintain the WIP, because the operating cycle is very high. And looking at the next year growth also I think our MD has given the percentages already, we need to import material or purchase material one quarter in advance for the next year. So, the inventory always is for a future sale not for the — what is happened, but incidentally, we need to calculate working capital based on the actual sales basis.

So, also many of the — the supplier credit terms we are making into LC kind of thing instead of paying advances. Unlike, you know, during COVID scenario, we used to pay advances. Now, I think we’re slowly converting into the LC credit terms and all. And we also try and do you know, the receivable factoring on a non-recourse basis, we are talking to various people, once it is materialized I think drastically working capital reduction will happen. But definitely 125 we will do it by the end of this finance year because of the higher revenue numbers.

Deepak Krishnan — Macquarie — Analyst

Sure, sir. Maybe just on Bloom also is an improvement in the overall you know, receivable cycle like 45 days after shipment because you know, transit time reduced or anything incrementally positive on that front?

Gunneswara Rao — Chief Financial Officer

Yes. So definitely supply chain, you know, that is — any reduction in the transit times it automatically will help our reduction in working capital. So I think that is also now happening slowly. But not before COVID level. It will take some more time.

Deepak Krishnan — Macquarie — Analyst

Sure, sir. Thank you for the answers and I am turning back all my questions. Best of luck for future quarters.

Gunneswara Rao — Chief Financial Officer

Thank you, thank you.

Operator

Thank you. The next question is from the nine of Mohit Kumar from DAM Capital. Please go ahead.

Mohit Kumar — DAM Capital — Analyst

Hi. Good afternoon, sir. So my first question is on the — how do you see the order inflow for FY ’24 and revenue stacking up? That’s the first question.

Gunneswara Rao — Chief Financial Officer

See, the order inflow. As I said, we have received orders until December close to I think INR893 crores or INR900 crores. And further by end of the year, we should have a closing order book close to about is what we’re expecting. So I think you’ll have a very strong order book position. We earlier said INR1000 crores, but now it should end up around INR1200 crores is what they’re expecting right now.

Mohit Kumar — DAM Capital — Analyst

My question is more about sir, FY ’24, 12 to 18 months. How do you see this order inflow?

Gunneswara Rao — Chief Financial Officer

FY ’24 obviously, we will expecting a lot more orders in FY ’24. We have been working on various products as I said. So overall, I can’t just quantify it right now. But we probably will receive a lot more orders in FY ’24 compared to FY ’23.

Mohit Kumar — DAM Capital — Analyst

Just looking for some kind of sir, segment though sir, segment through outlook. I’m not asking you to quantify the exact number just say color on, which are the segments which are looking — which are looking — we get thinking, we’ll add materially to the order inflow for FY ’24 just outlook, sir.

Gunneswara Rao — Chief Financial Officer

I — basically on the fuel side, you will receive substantial orders. The way we have received this year, probably slightly more than that. Then we’re doing pretty well in terms of hydro sector with GE Aerospace with Hendricks [Phonetic], Lloyd. We have completed all the first article, so we’ll move on to the volume kind of a scenario next year.

So we would expect a lot more orders at least close to about more than about a 100 crores plus in that far segment as — I would say new segment for us. And sheet metal would be another area where you would expect a lot more orders coming in. Apart from this, the ISO has already advised us to gear up on almost tripling our capacity because they want to increase the number of launches moving forward. So we would expect a lot more orders coming in. So it’s looking very encouraging in all these sectors as well. And that’s where we stand right now. So that’s where we are pretty confident about getting a much higher order book in terms of from various segments, not necessarily one segment, two ways in other.

Mohit Kumar — DAM Capital — Analyst

And something on the electrolyzers side where we are right now, where is the Bloom? Are we seeing some indication from Bloom, that there will be a successively higher order as you move forward?

Srinivas Reddy — Managing Director and Promoter

Can you repeat that question?

Mohit Kumar — DAM Capital — Analyst

On the electrolyzers side, hydrogen electrolyzers, are we hearing something? Are we — where are we right now in terms of evolution of our products?

Srinivas Reddy — Managing Director and Promoter

Yes, electrolyzers, we have received an order for 200 numbers, which will complete it probably 100 numbers this quarter, and probably 100 numbers next quarter. And then once that is done, we’re expecting the ramp up, which I’ve said earlier, ramp up should happen by fourth quarter, or by the third quarter of next year. So that would be substantial ramp up happening moving forward. So we’re very excited about that. That’s a completely an independent vertical, so that would bring a lot of revenues back with the history.

Mohit Kumar — DAM Capital — Analyst

Understood, sir. Thank you and best of luck. Thank you.

Operator

Thank you. The next question is from the line of Anika Mittal from Nvest Research. Please go ahead.

Anika Mittal — Nvest Research — Analyst

Hello. Am I audible?

Operator

Yes, sir. Please proceed.

Anika Mittal — Nvest Research — Analyst

Yes. Thanks. Congrats for the wonderful set of numbers, sir. Sir, one quick question on where do you see yourself in the different sector in next three, four years? And what are the steps that you are taking? As you see the current contribution to revenue from different sector is around 5%, I believe. So, how are you seeing to have a good share of that sector?

Srinivas Reddy — Managing Director and Promoter

So depends basically we are working on lot of projects with a different class right now, which we have been doing for a number of years. But we would obviously would like to become a different like a prime for a host maybe things like that. So we are working towards that. It’s all about technology in terms of working with various MNCs in a joint manner based on the Make in India concept, or define the concept that we have with 50% of production happening in India for all e-projects.

So we are in touch with number of companies abroad as well. So you will hear from us very shortly what steps we’re taking to really move into the line of defense line shortly, probably in a month or month and a half. So as in when it happened, we’ll definitely let all of you know about it. But we are definitely working on that.

Anika Mittal — Nvest Research — Analyst

Great. Sir, another stuff which I wanted to understand in terms of see when you get the big order from any of your segments, how do you accelerate your capacities? So we — while we — you know, that you’re — we know that you are incurring capex and stuff, but how quickly you can bring new capacity in line with the requirement of the industry.

Srinivas Reddy — Managing Director and Promoter

So, as I mentioned earlier, we have enough capacity to handling whether its nuclear space, any of this defense requirements, but we are also aware that we are gearing upon the electronics division as well. One good news is that we already implemented the cable harness systems in the company, and we are getting qualified in some of the MNCs by next month itself, but we proactively look at the forecast and demand and then we implement augment the capacity accordingly well ahead of time. That’s what we have done even for the [indecipherable] going in that line. So recently, you already acquired land SUZ zone to cater to the future requirements of the company the way it is growing. So we are proactively working on such things much ahead of time. So we always do that. And we continue to do that.

Anika Mittal — Nvest Research — Analyst

Okay. Sir, on this clean energy segment, you’re tie up with Bloom Energy. So, how does that relationship works sir? Is it like you haven’t long-term agreement with Bloom Energy? So, just to secure your revenues for the midterm, right? So, how it — how does that relationship works sir in sales that you can give?

Srinivas Reddy — Managing Director and Promoter

So, it’s not only about Bloom Energy, but with all our customers, if you look at even [indecipherable] programs, or any other customer, MNC customers, it’s more like a partnership based because we work on a lot of developmental activities with them. And we work with them in developing and making their products also very competitive in terms of — not in terms of price versus volume, but also in terms of innovation that we do. So, it’s been a — it’s always a long relationship, even moving forward as well.

Anika Mittal — Nvest Research — Analyst

Okay. And any idea like you — will you be getting any big claim next to Bloom Energy in near-term? Any insights that you can give on that?

Srinivas Reddy — Managing Director and Promoter

Yes, I have said earlier, we are working with a couple of companies on the energy storage systems, which are USB, which could be close to what room could be Bloom is probably two years from now. So, these are the companies which we are working in different segments clean energy. So, obviously, we’re adding a lot more customers. We have a great platform to work with all of them. And our qualification process also is pretty quick because of the platform that we have created over the years. So, definitely we’ll see a lot more customers coming into the — over the next one, two years.

Anika Mittal — Nvest Research — Analyst

Great. Once again, congrats for the good set of numbers. That’s it from our side. Thank you.

Srinivas Reddy — Managing Director and Promoter

Thank you.

Operator

Thank you. The next question is from the line of Renu Vaid from IIFL Securities. Please go ahead.

Renu Vaid — IIFL Securities — Analyst

Yeah. Hi. Good morning, sir.

Srinivas Reddy — Managing Director and Promoter

Good morning.

Renu Vaid — IIFL Securities — Analyst

Sir I have couple of questions. First, in your presentation, you mentioned that you have started working on ceramic assemblies for Bloom. So, if you can give some perspective on what are these products, and they will be associated with the [indecipherable] the electrolyzers, which end product of Bloom? And how are we looking at growth in this market? Also, for ceramics, are we doing any particular capex at the moment or not?

Srinivas Reddy — Managing Director and Promoter

No, ceramic, we don’t need any capex at this time, because it’s a kind of product where actually we are importing it from the US at this point of time. So, as we have done earlier, the number of process we have indigenized and localized everything in indirect platform, our extensive Bloom at room temperature. So, these ceramic assemblies go in all the systems, whether it is in [indecipherable] or even the electrolyzers as well. So, we are in the process of getting qualified for that. And broadly [indecipherable] also to get qualified, our existing equipment, machinery then [indecipherable]. We need to import the ceramic boards from Germany, that’s the only thing which we need to do. There are some supply lead-times involved in that. So once that is done, we’ll be all set for that.

Now if you look at the ASP, we have done a remarkable job three to four months time before qualified and we also received another INR400 crores in the product division which will track that as well. So similarly, we are also working on details, right its goes into our –. So that will take about six months time to get qualified trying to localize that as well for imported consumers. And the recent development is there is a product called dielectric, which goes into the Hotbox which has got a potential of almost INR200 crores, so we keep off meeting on that develop that is going to happen starting from next week onwards. So we’re trying to do more and more of these products. So all this the upside of all this will come into play once we get qualified.

Renu Vaid — IIFL Securities — Analyst

Got it? Right. So just to clarify the ASP 100 of order that you’ve received is classified in the products business and not in clean energy, or it’s reflected as a part of the energy portfolio itself?

Srinivas Reddy — Managing Director and Promoter

So it’s technically clean energy, but actually it’s a product which we are supplying in multiple numbers. So if you look at whether it is ASP vendors which are using in-house but it’s also a product then Roller Screws, finally we got qualified for Roller Screws. We submitted essays as well and just waiting for government of India to get the nod for import ban on that. So all these would be classified and the products including the EMA that is from mechanical actuators, which we’re doing right now, so our idea is to build this product portfolio, whether we use for clean energy of space or the sensor use here. So that’s what we want to classify that moving forward.

Renu Vaid — IIFL Securities — Analyst

Got it. Okay, that explains. Secondly, can you share with us the developments on the electronic business division, which we had set up. You have done some trial of first articles for Bloom as well, and you’re targeting some new business in this space. So any updates on the electronics division?

Srinivas Reddy — Managing Director and Promoter

Yeah, absolutely. We have already established the cable harness business. The equipment everything has done. We’ve established it. We’re in an advantage of qualification with Bloom, which should happen in this quarter, for sure. So you don’t have to anyway, by the cables anyway moving forward for our electro enclosures. Similarly, ISRO also has come and approved our provision including HAL had reviewed our progress in this. So our idea is to move into the electronics division, both in domestic defense market as well as for exports. And once we complete the cable harness, then we move on to the other segments of electronics, step by step. So it’s a one and a half years kind of a plan. And ultimately, we are going to move very strongly to the electronics division, probably couple of years from now, in all different areas that we’re looking at in the electronics segment.

Renu Vaid — IIFL Securities — Analyst

Right. So just trying to understand beyond the cable harnesses, you plan to do the PCBA is required for us in the EMS for PCBA is for ISRO, HAL and other defense PSUs?

Srinivas Reddy — Managing Director and Promoter

Yeah, that’s right. Once we complete the cable harness then the next step is going to be the PCBs and the box bills and all that. So that’s idea of moving step by step in the area. Obviously, we’re looking at a lot more other areas in the electronics division, which it’s too premature to talk about. But we are sincerely looking at really building a product portfolio or in terms of the segments that we can work on the electronic side of the opportunity in the different sectors.

Renu Vaid — IIFL Securities — Analyst

Got it. And sir lastly, while you have shared inflow outflow across other segments, any word on the Nuclear Large Project Award have been delayed for quite some time now. And we’re still waiting for the fleet tenders to pick up momentum. So any updates on the order inflow prospects on the nuclear side for currently are 2023, 2024? And how should we look at the execution on this business?

Srinivas Reddy — Managing Director and Promoter

See, Nuclear, what we’re trying to do is, our projects are almost like, for example, we added some — it’s a very important question, what you’re asked for, is Fuelling Machine had orders, what we have is we are almost excluded in this country.

Some of the bottles, we are asked to actually integrate this, because of the need for Government of India what actually the facing issues with election situation right now. So that’s how there’s been slight delay in terms of getting these bottles be denied.

So we have to get all that. So you’ll see the dispatching happening in the Fuelling Machine starting from this quarter onwards. That means we also got orders for the Fuel Transfer System, the FMBC Project, all these orders, which are their projects exclusively,.

We just received those orders. We’re in the process of sorting the material and the bottles for that which some of the bottles, we still have to eliminate. I just give a simple example, in terms of function variants, there put a band of not exporting those things to India, for whatever reason.

So now we are developing our own concentrated products. The important part of that is — that we probably got it. We are developing that. And we’ll be able to do it at 40% of the cost. So, we have been asked by Government of India to digitize as much as possible, so that the dependency on the external factors will not come into play at all.

So we are working on all this parallelly to make sure that guys well played by itself. And we are contributing a lot towards that. And that might be the thing which is likely to make the process, but we’ll catch-up with those numbers very quickly. But most important thing is, going to indigenize certain things which are very crucial for this factory as itself.

Renu Vaid — IIFL Securities — Analyst

Great. And will that also mean that once you have indigenized some of these components?

Srinivas Reddy — Managing Director and Promoter

Yeah go ahead.

Renu Vaid — IIFL Securities — Analyst

Yeah. So will this also mean that once some of these critical components are localized, you will have a shorter revenue share from the customer for FMBC for these projects? Mostly a single vendor basis or it will be again bid based.

Srinivas Reddy — Managing Director and Promoter

That’s what — yeah, that’s what you have seen in the case of water lubricate bearings. We are the only supplier in the countries that import substitute the Ball. The Ball Screws as well. So with the mainly the Roller Screws was another thing.

So concentrating to all these are going to be like excluding, because we are spending a lot of time in R&D to develop them. It’s not easy to do all this. In engineering, it’s not that easy. But we have been doing it. We have been achieving this. So we will benefit a lot moving forward. So that’s the idea there which falls there.

Renu Vaid — IIFL Securities — Analyst

Got it. Thanks so much and all the best sir.

Srinivas Reddy — Managing Director and Promoter

Thank you.

Operator

Thank you. The next question is from the line of Renjith Sivaram from Mahindra Manulife Mutual Fund. Please go ahead.

Renjith Sivaram — Mahindra Manulife Mutual Fund — Analyst

Yeah. Hi, sir. Contracts of numbers, sir one thing, which we wanted to understand is that, like, what is our strategy in term — if you want, we were also planning to deals council from the dependency on Bloom.

So currently, like, you also had mentioned last time that we are looking at a void and other kinds of hydropower and things. So in a in a three year perspective, if you look at it like, how much will be Bloom contribution in your overall top line, given the ramp up in the other segments which you are expecting?

Srinivas Reddy — Managing Director and Promoter

So let me answer this question to you in a different way. We definitely do have a strong strategy moving forward over the next three years to five years. And that was in different segments. It’s not only in fuel cells, but we also now into to hydro wind. We’re also integrated programs, space and all that. So if you look at Bloom, see today, Bloom is the number one leading company in the world in filter technology dropping $1 billion turnover. If you look at the UBS report, the latest UBS report on Bloom, they’re going to be a $3 billion revenue company over the next two years and odd.

So what I’m trying to say here is that this company was built over 15 years and the technology has evolved and they’re competing with a great power. So I don’t see any kind of risk for the company as such. But that doesn’t mean we’re stopping at thus for. We are working with other fuel cell companies, but other fuel cell companies are way behind Bloom. They still have to oblige on their prototypes, ramp up and come to a level where Bloom is. So that’s going to take some time. So you have companies like Glasgow, for example, right. So their major revenues are the material handling systems rather than the fuel cells, so they still have to grade up. So they are — we would love them to turn up their product very well, so that they can have the need of company like MTAR to work with them. We have no exclusivity with anybody. We keep each individual IPs very independent.

So, we are working with number of companies. As I said, we are looking at fuel cell energy for the energy storage systems, it’s going be a huge gain in terms of revenues over the next two years. We’re working with MS [Indecipherable] another company which is working with a US-based company. So, looking at Voith, we and Amplix on the hydro sectors, we are already completed first articles. We’re getting repeat orders right now. So, the companies going in a path where we have a lot more wider customer base, but the numbers coming from Bloom are purely based on their performance in international markets. So, I don’t see that as any kind of risk strategically, but we are working towards various ways and into customer base.

Renjith Sivaram — Mahindra Manulife Mutual Fund — Analyst

Okay, great. And Sir, Space program, I think in your PPT also you have elaborately clearly mentioned. So, what is the overall size of this project if they fructify in the next two to three years and how do you see that growing at what size it can attain in a long-term and can it become a INR300 crores, INR400 crore business?

Srinivas Reddy — Managing Director and Promoter

It would become INR300, INR400, even of much bigger business once we launch our SmartTech launch vehicle, which we said we started working on it. It’s a three to four years of program which we’re working on. We’re having our own launch working by itself. We have all the facilities to do that. We have — right now the team also is getting ready to take. So we’re right on track with that. But as far as the — that’s the game changer for entire and that’s our plan beyond FY 2026.

But as far as ISRO is concerned, obviously I mentioned earlier that we’re looking at three times the requirement, the kind of launches that we would like to do, the accuracy gear up on our capacities, which we do — we have in most of the areas. So that would grow at a CAGR of 30% to 35% year on year basis, moving forward. So Ireland [Phonetic] is the major thing, what’s going to happen is once we launch our own vehicle. So that’s what our vision is in the privatization of the whole state sector in which Government of India is also pushing for. And since we have enough experience of 35 years in this line, it will speed up the whole process moving forward.

Renjith Sivaram — Mahindra Manulife Mutual Fund — Analyst

So, in our own vehicle, probably the engine, Vikas Engine will be kind of bought from ISRO and the — some of these engines which you’re supplying to ISRO that will —

Srinivas Reddy — Managing Director and Promoter

It happened to do with the Vikas Engine, it’s our own engine, that’s what I’m trying to tell you. So we are designing and developing our own entire launch vehicles. So this Vikas Engine is completely dependent on that.

Renjith Sivaram — Mahindra Manulife Mutual Fund — Analyst

Okay. And when is this —

Operator

Sorry to interrupt, Mr. Sivaram.

Renjith Sivaram — Mahindra Manulife Mutual Fund — Analyst

Yes.

Operator

I request you to please.

Renjith Sivaram — Mahindra Manulife Mutual Fund — Analyst

Yes. Sure, sure. Okay.

Operator

Thank you. Ladies and gentleman, in order to ensure that the management will be able to answer questions from all participants, please limit your questions to two per participant. Should you have a follow up question, please rejoin the queue. Thank you. The next question is from the line of Sandeep Tulsiyan from JM Financial. Please, go ahead.

Sandeep Tulsiyan — JM Financial — Analyst

Yes. Very good morning, sir. Sir is it possible to quantify — yes, is it possible to quantify some of these new products. You quantified ASP assemblies. Sheet metal, of course, you have done better than what we had guided for the year, in the nine month itself.

But for next financial year, FY 2024, if you could quantify what would be the sales you could derive from these areas like sheet metals, enclosures, as well as the new electrolyzer parts that you mentioned, you will be indigenizing.

Srinivas Reddy — Managing Director and Promoter

See, as I said, the ASP, which we have developed and we received an order for INR100 crores, it’s an annual requirements of about — it’s the same product we talked about in terms of numbers, each of the ASP is about $55. And it’s close to INR150 crores of requirement every year, which will grow year on year basis based on the number of hotboxes which you grow every year.

When it comes to enclosures, we are looking at almost like 3,000 numbers of enclosures moving forward in the next financial year, because we are all geared up for that. There has been a certain lead time on various parts, bottles, which to go into the enclosures. So we’re all set for that. We got qualified for it. And in fact, the EOU certification for encoders also is in the last stage, probably by next week, we should receive it. So this was really enhanced on a quarterly basis that we had almost like somewhere between 600 to 800 enclosures going out every quarter.

When it comes to sheet metal assemblies, we’re actually doing really well here. We said earlier, 67 assemblies were qualified. But right now another 15 to 20 more assemblies were going to get qualified for this. And that’s going to increase our revenue base moving forward.

Now, the electrolyzers, as I said, is going to — once we compete the 200 numbers, the ramp up will definitely happen by the third quarter of next financial year for sure. So we’re trying to gear up for that.

So keeping all this in mind, we have a very strong growth outlook, not only fuel cell part, in hydro also, we got qualified in number of areas right now, with all these companies. So we’re going to have a very strong growth outlook aim for the next financial year as well.

Sandeep Tulsiyan — JM Financial — Analyst

Got it. Sir, second question is on nuclear. I think, of course, you had a very good build up in the order book. But revenues in the first nine-month are definitely, you could say, very similar to what we did last year. So assuming there is some bunching up of revenue going to happen in fourth quarter, over here, what could be the annual revenue we could look at in the nucleus segment for the current financial year.

Srinivas Reddy — Managing Director and Promoter

I think as I explained earlier, we’re trying to envision a lot of workers which of course will deny because of the restrictions by Government of India, we’re working on that. But we would definitely do probably between around INR45 crores to INR50 crores of revenues in nuclear the fourth quarter will be much stronger than a nuclear program, which will — probably start dispatching our requirements in the fourth quarter. So that will propel the revenues and moving forward since everything is in place for the FMS [Phonetic ]we have some five more [Indecipherable] to deliver that will get done in the next year comfortably every quarter. So then we work on the other projects which are working on the fuel transfer system and then basically all will come into play step by step. So then we are — what’s happening moving forward in nuclear program since everything is falling into place, especially the integration of what we are trying to do for Government of India right now.

Sandeep Tulsiyan — JM Financial — Analyst

Understood. Last question is on the working capital, if you could also give us the absolute number into Rupees crore, what was there at the end of December and then after receiving the INR38 crore, how much did it reduced to

Srinivas Reddy — Managing Director and Promoter

Yes, the absolute number of working capital value is INR394 crores and we received INR38 crores in Jan first week and the entire January we received around INR75 crores which is all are well within the our credit period.

Sandeep Tulsiyan — JM Financial — Analyst

So, this INR240 crores what is mentioned in the presentation, feasible — this is after reducing INR35 crores

Srinivas Reddy — Managing Director and Promoter

The receivable value that is only a receivable value.

Sandeep Tulsiyan — JM Financial — Analyst

No, that is after reducing the INR38 crore or it is prior to

Srinivas Reddy — Managing Director and Promoter

No no, not reducing, this is before reducing. We don’t want to reduce because as of December ’22 this is the scenario so, we are maintaining. So this is an additional explanation we are giving to just have a transparency.

Sandeep Tulsiyan — JM Financial — Analyst

Understood, sir, Thank you so much for that.

Srinivas Reddy — Managing Director and Promoter

Thank you.

Operator

Thank you. The next question is from the line of Neerav Dalal from — MayBank Investment Banking Group, please go ahead.

Neerav Dalal — MayBank Investment Banking Group — Analyst

Thank you for the opportunity. I had three questions first is say for the FY ’23 revenues of about INR550 crores to INR600 crores, what would be the annuity portion for that going ahead, because you obviously mentioned that in the ASP INR130 crores would be something that would recur every year. So just wanted to understand the annuity portion of the business and how that has increased? That is my first question.

The second question is in terms of, as we indigenize the products or Chateau [Phonetic] make production house, would that mean increase in margins? Or would that also — would that mean that the R&D expenses would also increase for us? That is a question number two. And in terms of our capex plans going ahead, what should be our — what would be our capex plans for the next couple of years

Srinivas Reddy — Managing Director and Promoter

See, I said earlier, obviously, we have revised that guidance based on what we can clearly see right now, something range of between INR500 crores to INR600 crores of revenues coming in for this year. And moving forward I have said that for next year, FY ’24, you’re looking at 45%, to 50% growth — revenue growth, compared to the current financial year. Now the growth is happening in terms of products, what we have developed plus also in growth in the field [Indecipherable], also in the hybrid segment, as well. And growth is also equally coming also from the nuclear programs, where we are in advanced stage of exclusion in some of the projects, and also in the space sector as well. So, it is evenly distributed among all the various segments that we’re working on.

And probably as I said, some of the new customers were joined in, we’re going to generate additional revenues from the new customers like Dallas, Collins Aerospace, all these customers are joined in already, and customers in pipeline as well in the energy storage system would contribute towards additional revenues in terms of phase and batch production for next year. So, it’s very clear indicating that we will comfortably grow that 45% 50% across the board in all the sectors.

Neerav Dalal — MayBank Investment Banking Group — Analyst

Right, just as a follow-on on this. Right. So, we are looking at growth, but would there — would that mean increase in the annuity portion of our business where we have no visibility, and it is — it would recur every year for us. So that that becomes the base and then over and above this, whatever would be the growth say for 2025, 2026, 2027 as the years go by. So, just wanted to understand that part of it, whether there is any–

Srinivas Reddy — Managing Director and Promoter

Yes, I got your point. So, most of our projects, there will be a growth on R&D basis. It’s not like a one-time project for us. Like look at space, we continuously supply rocket engines that we supply, the cryo engine, we are launching the semi-cryo next year. So, there’s new products coming in and the continuity of these existing products going year-on-year business. If you look at our fuel cell segment, every year it is growing in terms of the number of units that we are doing consistently. So, that’s growing and also the new products that we’re launching in the year. So, the growth is happening not only on a regular basis from the existing products, but also the new products that we are developing year-on-year basis, right. So the margins also were more or less sustained even with this growth, what we’re looking at, which I said around 49% plus or minus 50 basis points So, that’s what we continue to maintain moving forward. And you asked about the capex plans, yes, we will have some bottleneck areas, we have some new customers coming in, in the energy storage system. So, we’ll have certain capex plans, we have to utilize that as and when that is done, we need [indecipherable].

Neerav Dalal — MayBank Investment Banking Group — Analyst

Sir, just on the margin bit, so as we indigenized or we start to manufacture goods, products in-house, would there be any benefit in terms of margins, or we would use that same into R&D?

Srinivas Reddy — Managing Director and Promoter

Our R&D costs are there, but they’re not very high because they use our existing facilities or existing team work on it. But we do. So, there’s not much of amount to really highlight at this time.

Neerav Dalal — MayBank Investment Banking Group — Analyst

Sure. Thank you.

Operator

Thank you. The next question is from the line of Jonas Bhutta from Birla Mutual Fund. Please go ahead.

Jonas Bhutta — Birla Mutual Fund — Analyst

Hi, Mr. Reddy and congratulations on a great set of numbers. So, just picking up from one of the previous questions was on the capex, what is the capex that we’ve done so far in the nine months? What is the target for FY 2023? And how do we look at it for FY 2024?

Srinivas Reddy — Managing Director and Promoter

You want to answer the question?

Gunneswara Rao — Chief Financial Officer

Yes, I’ll answer this question. I think for last nine months, we have actually capex around INR80 crores, we have done it. And there is a capital work in progress of around INR72 crores is there, so — which we didn’t capitalize over a period of time maybe in this quarter, something we’ll look forward to next quarter. This is because last year, we have actually constructed a new facility in Adibatla, where our sheet metal and fabrication setup we have done. So, something was spillover from the last year around INR40 cores is still lower this year. And also around INR45 crores, we are spending for augmenting our capacity in our clean energy business in EOU. So, we have increased our capacity by almost 4,000 to 10,000, 2.5 times we have increased. So, this year also as Mr. Srinivas Reddy telling we are crystallizing, looking the numbers. So, we will communicate maybe in the coming quarter

Jonas Bhutta — Birla Mutual Fund — Analyst

Sure. Should be pencil in more like the same number of about INR90 odd crores even in FY ’24?

Gunneswara Rao — Chief Financial Officer

Not that much. Definitely it will be lower as we arrived. We have to address bottleneck and also some of the new customers, which we are working with them. There may be some little capex is required. So some sustenance capex we need to incur. It is not going to be that that much. It is very lower I think lower — much lower than the last two years.

Jonas Bhutta — Birla Mutual Fund — Analyst

Understood. So my second question was on — again, you know, client concentration. So while we’ve done a phenomenal job in terms of adding newer products, such as ASPs, and sheet metals, and enclosures, etc. But the idea of when we were setting this, these capacities were also to bring in newer clients. So if you can talk about sheet metals or roller screws, etc. What will be the ex Bloom revenue that or in terms of market — marketing? Are we doing that over the next one or two years, you know, excluding Bloom? Where can these revenues be for these three or four products that we’ve developed in the last year, year and a half?

Gunneswara Rao — Chief Financial Officer

It’s not about three, four products. Basically, what we’re looking at is we’re adding a lot of other customers, right, for example, as we said in sheet metal, they’re looking at Advil [Phonetic] in Taiwan, they’re looking at us in terms of delivering a lot of the requirements which we settled for them. So issued — in our discussion stage with them.

Gee Pee and Aerospace, as already indicated they are going to release orders this quarter four, which is a combination of sheet metal and machining and stuff like that. So we’re adding a lot more customers in different segments. We can’t quantify at this point of time, but as I said lot wider basket of customers are in our portfolio right now, some are in first article stage, some have been qualified, some are moving into volume stage right now, moving forward in the next quarter.

So overall, you know, the concept is that I will not say that as I explained earlier, Bloom is growing rapidly. So that’s good for us. But we also create a platform to work with other energy storage companies like Bloom’s Energy, we’re trying to work with them, that’s going to be a huge thing, like we’re looking at almost INR300 crores to INR500 crores of revenues coming in from Bloom’s Energy over the next two and two and half years.

So we are looking at customers where a lot of R&D is required, a lot of development activities required but that should convert into a meaningfully commercial, meaningful numbers for us in the long run. So we are trying to add customers in areas where MTAR can really contribute to greater exchange where entry barriers are very tough. So that’s what we’re focusing upon right now. So we’ve been a very good space moving forward let’s say one year, two years from now.

Jonas Bhutta — Birla Mutual Fund — Analyst

Got it. And my last question was regarding Bloom and the Hotbox. So, you know, one, if you can tell us, we started off with — with a mandate, where we were realizing almost $8,000 to $9,000, per hotbox. But with all of these product additions that we’ve done over the last few years, our share — wallet share was likely to increase. And part of that is also indigenized. So within that 9,000 bellows, etc., do you localize and you get more value for — more margin though the ASP largely remains $9,000. So I’m just trying to think through, where are — so what is the realization for hotbox as of today and where does it move going forward?

Srinivas Reddy — Managing Director and Promoter

So, we are trying to do more and more, so ultimately if you look at the cable harness, we’re going to get qualified next month. So we have the ASPs, we have the enclosures, we have the sheet metal assembly. So we are moving close to about 17,000 to 18,000 or 19,000 for hotbox, accumulate everything together.

So we are going to a stage where we can completely do the box build, ultimately, in a year’s time from today, that’s ultimate goal for us. Probably try to cattle — we have start exporting to South Korea as well directly for Bloom and so they’re sending it to US.

So the idea is for the Asian markets, for the markets closer by, it doesn’t make any sense to send a system compared to US and back and forth. So it’s going to evolve in such a way that in a year, year and half, probably we’ll do the entire system as such. So it has been evolved that way. There’s a lot of qualification process for every stage of it, right? So imagining this will happen. So ultimately that’s the end goal.

Jonas Bhutta — Birla Mutual Fund — Analyst

Got it. And we are set for 7,000 hotboxes next year, right?

Srinivas Reddy — Managing Director and Promoter

Yeah. That’s right.

Jonas Bhutta — Birla Mutual Fund — Analyst

And the order for that is already in our book, or a part of that needs to come through during FY ’24?

Srinivas Reddy — Managing Director and Promoter

It’s already there. Only — we have bought orders till December of next year. So probably they’ll review that. The orders are released almost like six to nine months ahead of time. So we’ll probably get the next batch of orders in the first quarter of next financial year.

Jonas Bhutta — Birla Mutual Fund — Analyst

Got it. Understood. Thanks a lot, and all the best for the future sir. Thank you.

Operator

Thank you. The next question is from the line of Aman Vij from Astute Investment Management. Please go ahead.

Aman Vij — Astute Investment Management — Analyst

Yeah, good afternoon. Sir. My first question is on the disclosure you had talked in the last call about Fluence Energy in the order, and we were expecting around INR300 crores to INR500 crores in one, one and a half years. So, sir if I correlate this with our guidance on that INR600 crores top line that we are aspiring to see in FY ’23? 55% growth is around INR300 crores. But are you not taking into account any revenue coming from this Fluence Energy order? Or is there any delay, which you are seeing if you can talk, give an update on Fluence Energy and tie up with the revenue guidance?

Srinivas Reddy — Managing Director and Promoter

See any organization be it Fluence Energy or any other company, or any company for it’s matter, first you need to do the first article, you need to do the batch production, its a process by itself. So by plugging in those numbers for the next year, it doesn’t make any sense to me. So whatever numbers are generated from that is something, which is a small upside to it, but the real ramp-up will happen by end of next year, once we implement everything. So probably look at the major numbers coming in moving forward for FY ’25. That’s how it works.

Aman Vij — Astute Investment Management — Analyst

Sure sir. And you think this can be, like, you talked about as big as Bloom Energy in the next two years?

Srinivas Reddy — Managing Director and Promoter

Which one the Fluence Energy?

Aman Vij — Astute Investment Management — Analyst

Yes, yes.

Srinivas Reddy — Managing Director and Promoter

Yeah. So basically, there’s a lot of demand for energy storage systems internationally. So I can’t say it’s going to be as big as Bloom Energy, but it’s going to be one of our biggest customers moving forward from FY 2025 onwards.

Aman Vij — Astute Investment Management — Analyst

Sure, sir. My second question is on the ISRO SSLV launch, which happened today, and also our plans on it. So what I understand, and you can correct me if I’m wrong. ISRO has been planning to ramp-up the number of launches for last three years to five years, but it has been stuck at that 10 odd level — 10 to 12. There target is maybe 18 to 20.

So if you can talk about, do you see that happen in FY 2024, or it will take more time on the ISRO side as well as — to be an average launch costs around $40 million to $50 million SSLV. So what will be our portion of value addition in that, because now you are also working on the full engine apart from the vehicle body. So if you can explain these two things?

Srinivas Reddy — Managing Director and Promoter

See the one main thing from ISRO side is the recent GSLV launch, which they did was highly successful. So they have a lot more demand on such launches moving forward. So that’s the reason why they wanted to increase the number of launches, commercial launches. And that’s where the demand comes from, you know, asking us we received a letter directly from the Chairman of ISRO to work on more cryo [Phonetic] engines to be produced moving forward.

That probably you — as you’re all aware the metal is given as the issue by ISRO. So they have to gear up from their site as well, but we will have. We’re looking at probably in the second half of the year they are going to gear up to not only from our site from their site as well. So they’re looking at those launches going higher and higher, based on the instructors what they had.

Now, as far as our contribution to the launches, it’s not only on the Indian side, but we do a lot of electro pneumatic modules. We do a lot of other assemblies for them. So that’s something which every area there’s going to be an increase. But our main vision, three years to four years from now is going to be our own launch vehicle

We still have to quantify the numbers for that, but our design work has already started much ahead of time. Six months back, we have a signed MoU with IN-SPACe as well. So that’s going to be a big game changer for MTAR moving forward three years to four years from now. So where we’ll be able to launch the satellites with our own launch vehicle. And government of India is also looking for so to be more of an R&D division, rather than looking at and industry to do it. So whoever is capable of doing it, since we have 35 years of experience in this line, probably will move ahead in a much faster pace to get this done. But to build the entire launch vehicle, it would take at least three years to four years time and that’s what we’re working on right now.

Aman Vij — Astute Investment Management — Analyst

If you can just explain this part [Indecipherable]. Typically, as of today, what is the — what is our share in a typical launch? As well as what is the rough, I think, engine will be one main component.

Srinivas Reddy — Managing Director and Promoter

Its difficulty to quantify the share because the numbers from government are never given to us. So we can only say what all we can contribute. We contribute a sizable portion. For example, our engines are used for the last 35 years by so. It has never been a blemish till today. None of the launches have failed because of the products what we have given.

We are the only cryo engine suppliers in the country today for ISRO. So we have developed this over a year, you know, eight, nine years of research in the past. So that’s the kind of technology we are holding with us. So we’re continuing to support ISRO as much as possible. We work jointly with them. And we have great set of scientists and engineers in this country. We all work together.

Frankly speaking, we have been very successful, technically in terms of achieving such launches, without depending much on any of the international, any other countries abroad. So it’s been all done indigenously. That’s a massive feed that we all need to appreciate.

Aman Vij — Astute Investment Management — Analyst

This three years capacity increase letter, was it received recently or is it like long time back?

Srinivas Reddy — Managing Director and Promoter

Can you repeat that question? I can’t hear you well.

Aman Vij — Astute Investment Management — Analyst

We had talked about ISRO has given us a letter to increase, be ready for increasing our capacity to 3x. So is it a recent event or is it one, two years back? Thanks.

Srinivas Reddy — Managing Director and Promoter

No, it’s a recent event. It’s not one, two years back.

Aman Vij — Astute Investment Management — Analyst

Okay, sure. That’s it from my side. Thank you.

Operator

Thank you. The next question is from the line of Mahesh Bendre from LIC Mutual Fund. Please go ahead.

Mahesh Bendre — LIC Mutual Fund — Analyst

Sir, my questions have been answered. Thank you so much.

Operator

Thank you. The next question is from the line of Amar Mourya from AlfAccurate Advisors. Please go ahead. As the current participant is not answering, we move on to the next participant. The question is from the line of Deepak Krishnan from Macquarie. Please go ahead.

Deepak Krishnan — Macquarie — Analyst

Sir, my questions have been answered. Thank you.

Operator

Thank you. The next question is from the line of Abhishek Agarwal from Naredi Investments. Please go ahead.

Abhishek Agarwal — Naredi Investments — Analyst

Good afternoon, sir. My first question, recently MoU signed with IN-SPACe, can you share more color and opportunity size in next one, two, three years? And second question, furthermore, promoters excel in your cart?

Srinivas Reddy — Managing Director and Promoter

No, Abhishek, can repeat your first question again?

Operator

Sorry, sir. Sorry to interrupt, Mr. Agarwal. I would request you to use your handset to ask a question, sir.

Abhishek Agarwal — Naredi Investments — Analyst

[Indecipherable]

Operator

Yes, sir. Please continue.

Abhishek Agarwal — Naredi Investments — Analyst

Yes. Yes. Okay. Sir, my first question, recently MoU signed with IN-SPACe, can you share more color and opportunities signed in — opportunities signed in the next one, two, three year?

And second question, furthermore promoter restake stay in your cart?

Srinivas Reddy — Managing Director and Promoter

What was your first question? About — you’re talking about space?

Abhishek Agarwal — Naredi Investments — Analyst

Sir, recently MoU signed with IN-SPACe. Can you share more color and opportunity size in next one, two, three-year?

Srinivas Reddy — Managing Director and Promoter

That’s what I said. Like MoU signed for a joint — working together to build a launch vehicle by MTAR, completely independent of ISRO apart with enough support from ISRO and various areas. That’s what Government of India wants to do while using a launch pad facilities, etc. So this will come into play three years from now. Once we build a launch vehicle then we do the development in launches and then the commercial launches. So we’re looking at about three to four years timeframe for this. But that’s going to be a big game changer for the company. And your second question on the — what some of the — what is the second question, can you repeat?

Abhishek Agarwal — Naredi Investments — Analyst

Furthermore, motor stake sale in your cart.

Srinivas Reddy — Managing Director and Promoter

Where is that come from? I have no idea about that. There is nothing as of right now.

Abhishek Agarwal — Naredi Investments — Analyst

Okay.

Operator

Thank you. Next question is from the line of Sanjana Deshpande from StockAxis. Please go ahead.

Sanjana Deshpande — StockAxis — Analyst

Good afternoon, sir. So, firstly, I would like to understand since the demand prospects are high in Clean Energy segment, so what is the exact order book for Clean Energy segment? And how it will be executed in FY 2024 and 2025?

Gunneswara Rao — Chief Financial Officer

The order book for Clean Energy segment I don’t have the exact number, but probably beyond INR600 crores. So, usually all these orders are excusable — by December of next year, and that what it is, and it is growing at a similar pace year-on-year basis. Let’s be able to add further products to it as I’ve explain earlier. So we are in a great space over there.

Sanjana Deshpande — StockAxis — Analyst

Okay. And second question is how — how we like project the revenue inflows from this particular segment because not all that we are executing will be converted into revenue in that time period. So, your comments on that?

Gunneswara Rao — Chief Financial Officer

Whatever orders we have, as of today, that needs to get executed by December 2023, right.

Sanjana Deshpande — StockAxis — Analyst

Okay.

Gunneswara Rao — Chief Financial Officer

That’s what it is.

Sanjana Deshpande — StockAxis — Analyst

Okay. Okay. Thank you. And congratulations on a good set of numbers, sir.

Gunneswara Rao — Chief Financial Officer

Thank you.

Operator

Thank you. Ladies and gentlemen that was the last question for today. I would now like to hand the conference over to Mr. Srinivas Reddy, Managing Director and Promoter for closing comments. Over to you, sir.

Srinivas Reddy — Managing Director and Promoter

Thank you. And I would like to thank everyone for sparing the time to join today’s earnings call. It’s — I would like to say, the growth numbers will come in the case of MTAR. But I would love to say that, I would like to thank all my engineers and the R&D team for building such fabulous products, which are generating good set of numbers, just a byproduct of that. So we’ll continue to do that moving forward as well. And thank you so much for all of you for your support. Thank you.

Operator

[Operator Closing Remarks]