Pennar Industries Limited (NSE: PENIND) Q3 2026 Earnings Call dated Feb. 16, 2026
Corporate Participants:
Aditya Rao — Managing Director and Vice Chairman
Shrikant Bhakkad — Chief Financial Officer
K.M. Sunil — Vice President of Investor and Media Relations
Analysts:
Unidentified Participant
Harshil Shah — Analyst
Aniket Nikum — Analyst
Deepak Poddar — Analyst
Nitin Jain — Analyst
Shubhankar Gupta — Analyst
Rahul Kumar — Analyst
Prateek Bhandari — Analyst
Chetan Kumar — Analyst
Miraj Shah — Analyst
Vinod Krishna — Analyst
Ashish Soni — Analyst
Parshv Shah — Analyst
Avnish Tiwari — Analyst
Vedant — Analyst
Aniket — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Pinar Industries Q3FY26 earnings conference call hosted by Philip Capital India Private Limited. 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 assistance during the conference call, please signal an operator by pressing10.0 on your Touchstone phone. Please note that this conference has been recorded. This conference call may contain forward looking statements about the company which are based on the beliefs, opinions and expectations of the company as on date of this call.
These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. I now hand the conference over to Mr. Harshil Shah from Philip Capital India Private Limited. Thank you. And over to you, sir.
Harshil Shah — Analyst
Thank you. Anishka. Good morning. I’m very warm welcome to everyone. Thank you for being on the call of Panar Industries Limited. We are happy to have the management of Fenner Industries here today for the Q and A session with the investment community. The management is represented by Mr. Aditya Rao, Vice Chairman and Managing Director. Mr. Shikan Bakar, CFO Mr. Manuj, Vice President for Prep, Planning and. And KM Sunil, Vice President, Investor and Media Relations. Before we start with the Q and A session we will have opening comments from the management. Now I hand over the point to Mr.
Aditya for open comments. Over to you, sir.
Aditya Rao — Managing Director and Vice Chairman
Yeah. Your voice is still muffled. As I told you, you had to speak a little slower and louder.
Harshil Shah — Analyst
Should I. Should I go again?
Aditya Rao — Managing Director and Vice Chairman
No, no, it’s okay. But I’m just saying your voice is not very audible. Okay, so I’ll get started. If my voice isn’t clear or if it’s inaudible or please do let us know. All right. Good morning. Thank you for joining us for Pinar Industries Q3FY26 investor conference call. Happy to have you here with us to have this opportunity to share our recent performance and provide an update on the strategic direction driving our continuing growth. We’ll begin with an overview of our Q3 results. We highlight key metrics including revenue pat, working capital and our primary growth engines.
Following this, Mr. Srikant Bakar will provide a detailed financial review. We’ll then move into a Q and A session to engage with your questions. We’re pleased to report strong performance this quarter. Revenue increased by 13.3% to 959.02 crores. PAC grew by 10.14% to 33.55 crores. Reflecting sustained momentum across several of our core Business segments. The PAT was impacted by certain one time costs during the quarter, including provisions related to labor code implementation, wage agreements among others. Excluding these non recurring items, PAD growth would have been approximately 20% demonstrating the underlying strength of the business. So we talk now about our key revenue growth drivers.
Our PMP division’s capacity utilization has improved, manpower challenges have eased and inventory also has reduced by about 4,000 tonnes. Our order backlog is strong and holding and we expect it to grow further over the next few quarters. Driving revenue growth Here in Ascent, our US subsidiary in metal buildings, we have delivered strong double digit growth in both revenue and profitability. The order backlog has increased to 52 million and we are in a good place for sustained double digit growth in revenue and PBT through the remainder of the fiscal year. As in structural our acquisition also started booking orders and will be contributing very meaningfully to our revenue in Q4 and following quarters.
Engineering Services Our structural engineering business continues to perform very well. BIM growth was more modest but we have strengthened our sales and business development teams in the US to support future expansion. Overall again we expect healthy double digit growth in revenue and PPT for the full year. Hydraulics Our order backlog is more than doubled. The reduction in tariffs for the US will now help this business grow even quicker. We are expanding our presence in domestic and European markets and this segment, while modest in revenue contribution remains on a very stable path and we don’t expect we expect minimal impact for FY26.
The Boilers Division saw a very strong increase in our order backlog to 123 crores this quarter. We received a lot of strong export orders from Australia and Sri Lanka. Saipem and Browns Industry with strong execution in place, we anticipate very robust revenue growth in Q4. This will become a major growth lever for us for the next financial year. Our Q3 PAT margins were at 3.56% after excluding the one time. After including the one time events we would have been at 4%. So our revenue and profit trajectory continues to shift towards higher margin businesses and this positive trajectory will continue to grow our T80 at double digit rates.
Capital Efficiency Our RO stands at 21.3% and return on equity is at 12.1%. We’re quite confident of achieving these returns as performance continues to scale through the year. Working capital at 76 days reflecting timing related impacts from revenue perhaps not coming in in some of the segments. With stronger Q4 projections, especially in PEB and other key segments, we expect good improvement on this number in this quarter and the next quarter Q4 and the next quarters. This concludes my performance overview for the third quarter FY26. I will now hand over to our CFO Mr. Srikanth who will walk you through the detailed financials.
Thank you again for your interest and support.
Shrikant Bhakkad — Chief Financial Officer
Thank you Akhar. A very warm welcome to all our shareholders and investors joining the Q3 FY26 earnings call. Let me take you through the key financial highlights and I will go slowly. So that the numbers are clear.
Shrikant Bhakkad — Chief Financial Officer
Key Matrices Total Revenue has increased from 943 crores to 800 from 839.72 crores and increase of 103.34 crores. Overall 12.31% increase in revenue. EBITDA has improved from 88.3 crores to 98.54 crores. A growth of 7.2% PAT is increased by 10.14% from 30.46 crores to 33.55 crores. This PAT growth reflects the impact of certain one time employee related costs. Excluding this, the underlying PAD growth would have been substantially higher. Detailed Commentary on the Financial Results Revenue from our Operations the consolidated revenue as I said increased by 103.34 crores. This predominantly driven by two reasons. 1 increase in our standalone and our subsidiary businesses.
So 61.47 crores has increased from our standalone business and 41.87 crores increase from our subsidiaries. Within the segment, the diversified engineering revenue has increased from 415.6 cr crores to 520.31 crores a growth of 25.19% primarily driven by our strong performance in the steel BU sector. Custom Design Building Solutions. Revenue remains stable at 441 crores to 440 crores. At a consolidated level, the growth of 42 crores is in the US business driven by the Telco acquisition. This was offset by lower PEB sales in India due to the challenges that we have and we are confident that this will improve in the coming quarters.
The order book stands at 810 crores for the PEB India PEB US the combined asset Buildings and Asset structural order book is now at 60.6 million. Now coming to other income, the other income Is increased by 9.23 crore. Predominantly the factors include foreign exchange and translation gains, income from mutual funds and deposits and collection of old receivables. Write back of creditors plus the rendering income to give you a detailed explanation. 2.71 crores comes from forex transaction and translation gains 3.72 crores comes from interest income from mutual funds and deposits, 8.4 crores comes from collection of old receivables and write back of creditors.
Moving on, the employee benefit expenses have increased by 17.31 crores which includes 3.6 crores due to one time costs which are on account of labor code compliances order from Chennai High Court on union employee settlement and the wage agreement revision that we had. The balance 12.16 crores was an incremental cost in subsidiaries due to our telco acquisition and the normal increase due to revenue. Explaining on the finance cost Finance cost Is increased by 2.85 crore which is in line with the expectations. This increase is attributable predominantly from the acquisition of the assets from Telco Enterprise.
Higher working capital utilization in line with the revenue growth, Finance first stands at 3.56% of our net revenue which is better than our guidance of 4%. Our guidance breakup still remains the same 1% on long term loans and 3% on our working capital. We remain within the limits on the long term loans. Working capital is and we are hard at work to reduce the quarter and we plan to reduce this by using our inventory turns and accelerating the sales depreciation. Amortization is increased by 4.25 crores at a consolidated level, 1.33 comes from Sandbox which is on account of rivalry, Capex and other repairs and maintenance capitalization that we had and 2.92 crores comes from subsidiary on account of telco acquisition and robotic machines that we have installed at our US operations.
Moving on to other expenses, the other expenses increased by 39.79 crores comprising 26 crores from standalone and 14 crores from subsidies on standalone. The job work and the manpower cost has increased by 19 crores which are aligned with our higher order executions and increasing the manpower rates for our higher sales. Other costs are broadly in line with the revenue growth. We expect mannpower and subcontract costs to stay at this level while we aim to moderate the expenses to maintain the overall fixed cost discipline in the coming quarters. Subsidy level increase reflect the higher turnover and associated job work and operational costs which we expect to stabilize in the coming quarter.
Tax expense has been lowered due to the credit that we have received relating to previous assessment years. A provision of 1.4 crores was given based on the assessment order. We continue to guide to a consolidated tax rate of approximately 25.5% overall. Summary Revenue growth has been strong this quarter predominantly of diversified engineering, custom design, building solutions in The US and overall operations both in India. The revenue expansion has translated into an improvement in our profit for the quarter. With this, I will hand over the call back to the moderator for the investor community questions.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star in one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We take the first question from the line of Aniket Nikum from ABN Capital. Please proceed.
Aniket Nikum
Hello, Am I audible?
Aditya Rao
Yes, go ahead please.
Aniket Nikum
Yes, hi sir. Thanks for the. Sir, my first question is we seem to have a strong growth that we have shown in diversified engineering. So can you tell us a little bit about what has worked for us? What. What business segments have worked.
Aditya Rao
I’m sorry, you’re saying service for engineering. What is the.
Aniket Nikum
Yeah, what has worked? Because it seems like just a little bit all of a sudden we are growing at, you know, 25% broadly.
Aditya Rao
Excuse me, your voice is not very audible. Can you speak a little slower?
Aniket Nikum
Yes, Am I audible now?
Aditya Rao
Yes, doctor, speak a little slower please, so that we can understand.
Aniket Nikum
Yes, sure, sir. I was saying that can you comment a little bit about what segments in the diversified engineering have worked for us given the strong growth we have shown in this quarter.
Aditya Rao
Okay, I can tell you what, which growth vectors for us are growing strongly. I mean the attribution of IT direct diversified engineering versus. I think I’ll request Srikanth to answer. But for the third quarter question, we had pretty strong growth in our core business verticals, which is revenue in boilers, in engineering services, cross equipment grew. In our TEB US business also, there was a substantial amount of growth India too, as you would recall. We had some issues, but those issues are now being addressed. So we are at a good place to deliver growth in all five key verticals right now, which includes PEB India, which would see very strong growth in the next few quarters.
On the back of us having resolved the labor issues that we had and also on the back of stronger order backlogs, the acquisition of Telco plus our US auto backlog also being strong will drive that business quite strongly. Ascent has also done quite well last quarter. Engineering services or structural engineering is doing extremely well. We are in some sense capacity locked again, but we are quickly expanded capacity and this quarter we see very strong growth hydraulics because of the removal of duty from 50% to 18%. We already had some initiatives underway to scale those, scale that business vertical in the absence of the US market.
But now with the US market coming back, I think we are quite, we’re quite confident that several of our customers are going to restart. In fact, this morning itself I had a very encouraging conversation with one of our primary customers in the US and we’re quite confident again of that business scaling. Well, boilers, as I mentioned, the order backlog now is at 123 crores and double digit from a quarter quarter basis itself. Double digit growth is what we expect. So all of that will drive our growth over the next few quarters.
Shrikant Bhakkad
Yes. To answer your specific questions on the increase in the diversified engineering business, it comes from three angles. One is the steel business, boiler and biw. The combination of steel business, boiler and BIW has given us the increased growth.
Aniket Nikum
Okay sir, appreciate that. I think my second question sir is on the PEB business segment or the, you know, as you report it in segment reporting the custom design, building solutions and auxiliary segment, we’ve reported a flat number. So can you tell us what proportion of the business was from the acquisition because I guess that is not there last year and why the business was flat given that we already had a strong order book and we had new capacity and so on.
Aditya Rao
So the acquisition didn’t really come in in the last quarter though. We completed it in late September, early October, putting our new systems in place, getting our order backlog back up, transferring order backlogs, all of that took a little bit longer than we thought since this is an asset purchase and not a company purchase. So. But however this quarter it is extremely strong. Our order backlogs are higher than than they’ve been and from a revenue run rate point of view, also the rate we are at right now, from a production output point of view that we’re at right now for our acquisition, it’s higher than it’s ever been even prior to the acquisition for them.
So very quickly growth has come in very quickly. We have been able to scale a very short one time issue which resulted in the PEB business not being a major growth vector. But we feel that reverses quite strongly in this quarter. Everything is looking really good as far as we can tell for our PE business. India order backlogs are up, the labor issues have been resolved in the US Acquisition is now starting to contribute quite strongly and a lot of backlogs are also up for the regular metal buildings business in the us. So combine all of that and we are very Very confident that this is going to scale.
So that narrative should give you an idea about what we are expecting this quarter and what we saw for the last quarter.
Aniket Nikum
Got it, sir. Typically, we typically give the order book in the US and India, but I don’t see it in this presentation. Would you be. Would you be willing to share those numbers, sir, in the call?
Aditya Rao
Sure. The US let me break the US up into two pieces. The US order backlog for buildings is 52 million. The US order backlog for telco is about 10 million. The US India order backlog is about 820 crores.
Aniket Nikum
Okay, sir, thank you so much. Wish you all the best.
operator
Thank you. Before we proceed with the next participant, I would request all the participants to talk slowly while asking questions as the management is not able to hear clearly. We take the next question from the line of Deepak Podar from Sapphire Capital.
Deepak Poddar
Yeah, Am I audible? Sir.
Aditya Rao
Please go ahead.
Deepak Poddar
Yeah. Thank you very much sir for this opportunity. So, just wanted to. Can you Quantify what’s the one off? I mean you mentioned your adjusted PAT is 4% rate. So can you just quantify the one off in terms of labor code or any other one off?
Aditya Rao
The one off on one.
K.M. Sunil
One time cost.
Aditya Rao
Oh, okay. Okay. Shrieker, do you want to take this?
Shrikant Bhakkad
Yeah. The one time process on account of three things which comes in salaries and wages. One is on account of labor code compliance implementation. Second, we have received a Chennai High Court order for the union employees settlement which for which we need to have made a provision. Third, there are wage agreements that have been finalized with the workers. So. So all inclusives close to around 4 crores is the impact that we have. One time cost.
Deepak Poddar
4 crores is the total cost. So this will not reoccur. I mean these all are one off, right?
Aditya Rao
Correct. All of these are one time recurring. Recurring costs.
Deepak Poddar
Understood.
Aditya Rao
And one time non recurring cost map.
Deepak Poddar
Yeah. Four crores around. And in terms of the Telco acquisition, I think the contribution has started coming from this third quarter, right?
Aditya Rao
Not really, sir. Fourth quarter. We couldn’t really get anything in the third quarter because though we had completed the acquisition, putting our systems in place and asset purchase, the order backlog transfer took a little bit. I think you saw a little bit come in in December, but nothing that material. But this quarter I think I’m quite sure we will be able to give you some very good news that. For Q4 from Telco, from EEB India and Ascent.
Deepak Poddar
And that’s about what? 100 crores per annum revenue, Right? That’s the business,
Aditya Rao
it will be higher than that. It would be substantially higher than that.
Deepak Poddar
Okay. Okay. Would you be able to quantify, I mean what contribution annually that company can bring?
Aditya Rao
We can’t give revenue guidance but we can definitely tell you that from a order booking point of view we are doing about $2 million, about 18, 20 crores per month. So typically over the medium term, short term to medium term, your revenue and your order booking tend to converge. So we’re not giving you guidance for the year, but it will definitely be substantially over 100 crores.
Deepak Poddar
Understood. And in terms of issue you mentioned on PEB India. Right. So is the labor issue still. Still kind of haunting us? I mean, I mean what’s the issue we are talking about here?
Aditya Rao
No, we’ve resolved it. That was the issue we had for the last couple of quarters. We have now resolved it. We’ve undertaken many initiatives including building our own labor quarters, including increasing our contract manpower, including increasing our scale manpower which is sourced from other verticals as well. So now the issue is resolved, we are not labor bottlenecked anymore. So the combination of a large order backlog will see this revenue get back to full growth. So yeah, that issue solved. But you will see it in this quarter.
Deepak Poddar
Okay, so what was the issue which led to third quarter lower growth in PEB India? Right.
Aditya Rao
In PEB overall as I mentioned there was a dip. And the rational reasons for that was what I mentioned. Telco did not come in the way it wanted to the US also I think Ascend buildings also we didn’t have a lower quarter but we had a moderate growth quarter. And PEB India because of those reasons. As I mentioned in the last time we had spoken which was we were well on our way to a solution but by that time half the quarter was done. So from a run rate point of view, right now what we are seeing every month, what we’re seeing happen, this issue is behind us.
Deepak Poddar
Okay. Okay, understood. And I think you mentioned something on consolidated PAT of 25% I was not able to understand. I mean what we are trying to say here. I mean consolidated PAT of 25% something.
Aditya Rao
I think the narrative we may have given that matches those numbers is if the one time labor costs are removed then our pad growth and our cash pad growth are on those numbers. I think. But what’s relevant I think is what we have to declare. I think they may be one time items but they are cost items which the company adds. So we just wanted to give some narrative and clarity on why our revenue growth is 13, 14% but our profit growth is only 10%. That was the reason why we had the.
Deepak Poddar
Okay, understood. And then just final thing from my side. I think in the last call we mentioned a flow. Excuse me, floor of 20% pad growth that we are looking Y or Y. Right. So that we continue to hold, I mean for this year and coming years.
Aditya Rao
That remains. That definitely remains. This is a surprise one time thing quite frankly. Even the new labor law regulations, we should have perhaps anticipated that coming. But we have to follow accounting law and that is the reason why we couldn’t compensate for that quickly enough. But with the revenue growth plans that we have, we will absolutely maintain our double digit profit growth commitments. And if you look at what’s been happening over the last few years also that will. That’s absolutely what we intend to achieve.
Deepak Poddar
Yeah, I got it. That would be it. From my side would like to wish you all the best. Thank you so much.
Aditya Rao
Thank you so much.
operator
Thank you. We take the next question from the line of Nitin Jain from Fair Value Equity Advisor. Please proceed.
Nitin Jain
Yeah, thank you for the opportunity. So can you please clarify what was the exact impact due to the change in labor codes? Only like that part of the one time impact.
Aditya Rao
We don’t have that exact precise breakup as of right now. But we will, we will make sure we give that to you. Overall the combination of three issues which was the court case which was From I believe 1012 years ago that went against us, plus the labor code plus various divisions together we have that the exact. Because of the labor code we will, we’ll get that to you. But it was a substantial number.
Nitin Jain
Okay, so my next question is in Q2 management indicated that the unexecuted order book was around 880 crore in the PAB business. And this quarter we have one orders worth 780 crore. So even if I consider the PEB revenue for Q3 and the unexecuted order book as of December which is I guess you mentioned around 820 crore. So it is not reconciling. Exactly. Can you please help me with that?
Aditya Rao
Sure. Yeah. So the reason that number wouldn’t match up is what we have given. We have given you a few numbers for order backlog. The 70 crore number is order bookings for that quarter. It doesn’t represent the situation as it is right now. As it stands right now we’re well over 800 crores in the BEB India order backlog as well. And from a revenue recognition point of view there is a lot of what we follow effectively is when the risk has passed. So we have shipped debits are our order backlog, but it won’t show up in revenue because our auditors will not allow us to take that revenue in until we have received some measure of confirmation from our customers about goods that are shipped.
So those differences will give you a thing where you, if you look at the number that was quoted to you the last time we spoke in November, that would have been the order backlog at that point of time. The order booking number that we have given to 70 crores is a lump sum number for that quarter. The situation as a chance right now is one where the order backlog is very strong at well over 800 crores. And that’s only PV India I’m talking about if you add the entire PV space and it’s much higher over those regions, you will not see those numbers line up where order booking, opening, order book minus revenue plus new order booking is equal to current order backlog.
That equation will not work because of the reason I just mentioned.
Nitin Jain
Right? No, I’m not saying as of today, obviously there might be more order wins as of today, but I was hoping to reconcile as of the end of quarter three. So yeah.
Shrikant Bhakkad
The order book that we’ve given our startup, our press media release, that includes multiple businesses, so that includes India business, our diversified engineering business, plus the boiler and the hydraulic businesses as well. So that 780 crore is for the entire company, the order book, while The PEB order book 810 crore 6k is for PEB India and 52 plus 10 crores, what we have is for the US so yeah, in million, 52 million and the 10 million is for the US business. So the order books are different and this quarter order that we’ve received is 780 crores.
Hope I was able to clarify.
Nitin Jain
Right, right. So just a follow up to that. Out of the 780 crore you mentioned that this is for different verticals put together. What would, what portion would be attributable to peb?
Shrikant Bhakkad
That exact number we do not have right now. We’ll get that, we’ll get that number across.
Aditya Rao
We can give you the exact number. For PEB India as well as the PEB us. And just so you know to make sure that this is something has been clearly understood, typically when we give you order backlog numbers, they’re as they are right now. So in the month of January for example, we had well over 200 crores in order booking in TEB India itself. So I think the best way to understand this, especially from a revenue foreseeability revenue projection standpoint, is what our order backlog is at this point of time. The 780 crores is just the major order booking that we have, that we have to comply with reporting.
That’s why we go ahead and do that. But it is not by any means a holistic revenue projection indication for what we’re going to be doing. It’s a blend and it is not intended to be the way we project revenue. It only covers significant major orders. And as I mentioned, there’s a lot more of that that came in, in January. So I think we’d be best served if the point of this is to look at revenue foreseeability, what’s going to happen in the PEB business in India, in the us the best way for us to accomplish that is to look at current order backlogs.
But yeah, that’s my two cents.
Nitin Jain
Right? Right. Maybe I can take this offline. Thank you so much.
Aditya Rao
Absolutely. Thank you so much.
operator
Thank you. Before we proceed with the next question, participants, please limit your questions to two per participants as there are several participants waiting for their turn. We take the next question from the line of Shubhankar Gupta from Equity Capital. Please proceed.
Shubhankar Gupta
Hello. Hi. Just one question from my side which I wanted to deep dive into. So you said, we said that pad growth is 10% from 30 to 33 roughly. Right. But if we exclude the other income, it is roughly landing at 17.5, 23.7 actually roughly down 26%. And even if we, let’s say include the one time expense, the PAT will be at around 29.5 which will still be at around 10% lower than on a by basis. So just wanted to understand what has led to this degrowth in pat.
Shrikant Bhakkad
If I can explain the path through the other income as part of our regular income only, which is basically. Income. From deposits or foreign exchange translation reserve.
Shubhankar Gupta
It’S not operating income. Right. Like I’m talking about operating income basis, we are down 10% by OI.
Shrikant Bhakkad
See out of that close to around. As I’ve explained in my conversation, the Other income includes 3.72 crores approximately on foreign exchange translation gains and other things. That’s part of the operating income. But, but the rest of the things which is like the mutual funds and other things, they are not
Aditya Rao
to explain. That a little bit better. I mean the assumption for us, the model we follow is contribution operating margin targeting. And when we have these things where there’s a gap between whether it’s forex gains, other Gains we do take that into account when we’re mapping out what we have under operating contributions. So to Srikanth’s point, while I understand your question and what you’re, what you’re trying to say, we would take those things, keep those in our operating cash flow because we target our overall and overall operating margin is what we including these items is what we target.
Shubhankar Gupta
Okay, let’s consider that even foreign exchange is a part of let’s say income right now that would be around 4 crores roughly. Our pad growth will then be roughly 3,4%.
Shrikant Bhakkad
Right. If we include that, that part of the other income. So even then it is like grown very, very less like compared to what we were targeting, you know, a few quarters back. So I just want to understand like, like broadly in your view what has led to this underperformance and then how do we foresee it for FY27?
Aditya Rao
Well, we don’t necessarily see it for the, because of the reason that I mentioned, we don’t necessarily see it as underperformance. As I mentioned there’s a certain profit number that we operating margin that we target and we have multiple levers in order to achieve that. So the output that you see is effectively because of these one time costs. If those one time costs are put back in then we do see a number which is completely in line with our long term stated objective which is to get double digit profit growth not of 20%. And that is what we see.
I do get your narrative that look, if you were to exclude the other income and other items but these are very much in line with our overall, with our stated objectives of they also I do want to also state that a lot of provisionings that we make, we are very conservative in our accounting. I mean we follow accounting law of course but there’s for example a lot of provisions that we have made that we are sure will come in for us as well. So what we’re trying to give you is what the output is based on our operating margin controls.
But if you are asking us whether this is something that is sustainable, that can grow 100%. So we are quite confident of achieving and growing our revenue and profit growth targets and we are quite confident of committing to you as we have before that we expect our profit growth for the year for the following quarters for to be double digit and north of 20%. So yeah, I, that’s, that’s the best way I can answer your question.
Shubhankar Gupta
Okay, fair enough. And on the, on the debt number sees certain rise in that so shrikant if you can probably help me with like how is the debt, like what is the debt number currently? And like at what interest have we, like are we currently paying for that?
Shrikant Bhakkad
Specifically in terms of total overall borrowing cost has been increased in line with the increase in the revenue narrated in my discussion. And the second, the increase on account of long term is on account of the acquisition in telco. So overall 3.56% of the net sales. Is what our borrowing cost is.
Shubhankar Gupta
Okay, so to understand this clearly you’re saying that 13% revenue growth, Yovi, so even that has been the increase in the total borrowing, is that, is that what you’re saying?
Shrikant Bhakkad
Yes. In terms of absolute numbers. Yes. In terms of percentage there is a decline by 0.04 basis.
Shubhankar Gupta
Okay, got it. Okay, that’s helpful. Thank you. And at what cost is this like the whole total borrowing at weighted average cost.
Shrikant Bhakkad
The length of nine and a half percent.
Shubhankar Gupta
Okay, that’s helpful. All right, thank you.
operator
Yes, thank you. We take the next question from the line of Vinod Krishna from Evanders Wealth. Please proceed.
Vinod Krishna
I’m audible.
Aditya Rao
Yes, please
Vinod Krishna
can you give us two to three year guidance in terms of sales and pat, because you’ve been saying 20% you can be maintained on if you can a little bit elaborate on the drivers of sales growth. And and my second question is regarding PEB dynamics in India. See how is the competition shaping up and how do you see we be doing better in PEB going forward?
Aditya Rao
So growth drivers as I said are key growth drivers that we have mentioned which includes our boilers and process equipment, hydraulics, pre engineer buildings, India Pre Engineer Buildings, U.S. and Engineering Services are all firing and we expect growth in each and every one of those of those business units in revenue and profitability. So that’s our core strategy that the addressable market for these is quite high. So in this quarter which is Q4 for the financial year and for the remaining quarters you will see growth in all of those vectors. This year we had a substantial issue with PEB India, but that’s in the rearview mirror.
We have solved it last quarter towards the end itself it was solved and we are quite confident that we bring in we hit our numbers.
Vinod Krishna
So when will we hit our 5% pad margin that we have been getting sir? And what would be long run pat margin that we can settle settle at once. We read like all the legacy business is gone and then you reach scale in your most of your businesses because you’ve been telling that you want to have a 10% share in this steel product businesses. So then will be what will be our. When will we reach 5% and what will be our once we reach our desired market shares in each of our segments what will be our pat margins?
Aditya Rao
You will be at right now at 4%. You will see consistent quarter on quarter improvements as to when we reach five. And I think the better way for me to answer that so that this doesn’t become some form of guidance is for me to say that a long term sustainable PAC margin is a 7% lows and we are quite confident we’ll achieve that within the next two to three years. And that not happen at one time. It will happen quarter on quarter you will see improvements. I mean three years ago our patent margins were 2% change.
So that consistent with what we have done over the last two years we’ll continue doing that and that will ensure that.
Vinod Krishna
Sales growth of 15% to 20% we can take. I’m not asking for guidance but given the drivers and multi product and Both geographies of US and India so we can assume a 15% sales growth at least with 7% in three years. Three to four years.
Aditya Rao
I will say double digit sales growth. 15 we can definitely say is one of the targets we have in mind. But double digit sales growth will come. Into
Vinod Krishna
and then PAT of 7% over a 2, 3 year or 4 year.
Aditya Rao
That is what we have added to in our previous calls.
Vinod Krishna
Have we reasoned market shares of 10% in those products that you were mentioning that we want to take a small market share in all those products, boilers and all these things.
Aditya Rao
We have not achieved 10% market share in any of our business revenue streams. So that’s a good and bad thing. It’s a bad thing in the sense that we are not the largest player in any of those fields. It’s a good thing in terms of we have tremendous amount of headroom to grow. So that is. And we like it that way. I think once we reach 10% we’d be happy. We but in none of those business have they reached 10% as yet. And there are no market share capture.
Vinod Krishna
And there are no challenges to reach. It’s just a function of time and systems and people.
Aditya Rao
I don’t think our model calls for us to reach. I mean if you look at. Let’s look at the PEB space, the largest player in the peb space is 20% market share. Right. And that’s the business model and growth for them from a revenue standpoint would be harder would forward because they already are at 20% and unless the business the market itself is growing at high double digit rates sustainably over years. They would be difficult for them to grow. Our model is a little more nuanced. We pick five large addressable markets and we pick those.
Our market share is low. So sustained growth on that is what we’re trying to achieve. So there’s two things we try to do to ensure our revenue grows. One, yes, our market share grows moderately. But most importantly, the addressable market itself also should grow. That’s what we picked and we were quite confident that based on where we’re at right now we should have each one of these business units that I mentioned can deliver double digit growth. And that’s our goal to grow them.
Vinod Krishna
What I’m asking is the path to 10% is not like you’re seeing that there’s a path and you can see you going there. There’s no big obstacles that will not allow us to go there. You don’t see any new challenges that will stop us. You can see it that we can go there with time. That was what my question was like. I know we were not a 10%.
Aditya Rao
I think in general terms the market would not prevent any player from achieving 10% provided they have good assets and you know, good capital availability. I mean the commissioner assets and they’re good assets from a team technology know how the market will not prevent them. I do believe we are one of those players. Yes. So nothing should prevent us from getting to 10%.
Vinod Krishna
Thank you sir. Thank you very much and all the best.
Aditya Rao
Thank you.
operator
Thank you. We take the next question from the line of Rahul Kumar from Vaikara Fund. Please proceed.
Rahul Kumar
Yeah, hi. So Srikanth, actually can you help us understand the monthly run rate for the PV in India now versus what it was in Q3? And also can you help us understand the impact of the steel price increase on the PV in India.
Shrikant Bhakkad
Overall? 442 crores is what we have done. In terms of the customer design building solution company which is close to around 145 crores kind of a thing. And in terms of the overall number, that’s fair. Coming to your second question, in terms of seed prices, I think seed prices as we have alluded in our calls and other things, the price increase greatly do not impact us in any way. There are short term contracts and there are long term contracts. We have the quarterly pricing with JSW wherein we are protected for the next quarter rate and what we have the indications on them.
And in the long term contracts we are the increased margin is there as part of the contract. So any increase or decrease we will have to pass on to the customers. So that’s how the contracts are worded. So I hope that answers your question.
Rahul Kumar
Okay. Okay. So what’s the mix of these long term and short term contract in this. Pv.
Shrikant Bhakkad
On a quarterly basis we receive as we sell close to 700, 780 crores of short term contracts. Long term, the overall PEB cycle itself is six months. So on an average certain contract can be higher than six months. And there are a lot of contracts that are lesser than six months. So maximum. The order book that we have is executable over a period of six months.
Rahul Kumar
Okay. No, actually on the monthly run rate. I think sometime back you mentioned that our PV India business is back on growth target, growth trajectory and the monthly run rate has improved. So I was wondering what is the monthly run rate of the India PEB now versus let’s say October, November and it was impacted.
Shrikant Bhakkad
Yeah. I’ll come back to you with the excise precise number.
Aditya Rao
Yeah, we’ll give you the exact number because that’s the revenue number we’re at right now in a month. We want to make sure that’s something we can communicate well. But what we can tell you is that the monthly run rate right now compared to what it was two months ago, three months ago is higher. By double digit numbers. You can say. Almost north of 20% higher. So it’s growing and growing quickly.
Rahul Kumar
Okay. Okay, understood. Second question.
operator
I would request you to join back the queue as there are several participants waiting for their turn.
Rahul Kumar
Okay.
operator
We take the next question from the line of Prateek Bhandari from AART Ventures. Please proceed.
Prateek Bhandari
Hi sir. Thanks for the opportunity. You mentioned that with the removal of duty from 50 to 18% in hydraulics that would enable you to grow substantially. Right. So can you, you know, quantify the numbers with which you can grow there in the hydraulics division? This was my first question. The second.
Aditya Rao
Sorry, go ahead.
Prateek Bhandari
Yeah, so my second question was you mentioned that you have an order. Your, you know the hydraulics division order. Book also has doubled. So if you can quantify the number of the same and, and what has. Been the monthly run rate for the. Boilers division in terms of revenue. So these were my three questions.
Aditya Rao
Okay. So we do not as yet provide revenue breakup across all five of these revenue verticals. Right. Now once we start doing that, I’ll be able to provide that data for you. Let me get as close as I can to answering your question. So hydraulics order booking because of the change in the US duty structure it’s still something that we are fully mapping out. All I can commit to is that our order backlog will grow a lot more. But please do give us this quarter, next quarter onwards we will provide an exact number for how much our order backlog is going to grow because we are still mapping out the impact and as of right now it looks extremely encouraging.
But I don’t have an exact impact number for you. I can tell you however that the order backlog is projected to more than double in the next few weeks.
Prateek Bhandari
So that you mentioned that it has already doubled. Right.
Aditya Rao
Right.
Prateek Bhandari
So but then if you can quantify the numbers, I mean I wanted to understand as to, you know, the numbers, the base numbers and compared to is where we stand at the moment in hydraulics.
Aditya Rao
Okay. So as I said, revenue breaker for hydraulics we don’t provide. If you want to order backlog. Yeah, don’t believe we’ve declared that. Allow us to come back to you. I will, I want to give you a number that is there right now. We will get back to you and review this number.
Prateek Bhandari
Okay. And in terms of boiler business, you know what was the order inflow for us during the quarter? We you mentioned that we stand at 123crore of order book at the moment. And what typically is the execution timeline for the boilers?
Aditya Rao
So we source in our boiler business two kinds of orders. One is the power boilers and one is process equipment boilers. For process boilers the order execution cycle is much smaller, much shorter. It’s about three months to four months. For power boilers it tends to be a little higher than that, about nine months. So what you see is a blend of both of those sectors. But as a blended average this 126crores is something we expect to be able to revenue within the next six months.
Prateek Bhandari
So, so, so for power boilers you. Mentioned order exhibition timeline, one to four months. And which was the second one?
Aditya Rao
Sorry? Process is the shorter duration execution cycle which is around four months. Power boilers is longer duration which is about, as I mentioned about nine months. The weighted average you can take about six months.
Prateek Bhandari
Okay, so the higher execution timeline is a power boiler.
Aditya Rao
That’s correct.
Prateek Bhandari
All right. Okay, thanks a lot.
operator
Thank you. We take the next question from the line of Nitin Jain from Fair Value Equity Advisor. Please proceed.
Nitin Jain
Yeah, thank you for the follow up opportunity. Sir, last quarter you had mentioned that you are able to commit to minimum of 20% bad growth. And this call you have lowered it to around double digit. So can you provide any color on that? What Foresight do you see in the business which is, which is making you retract from the 20% growth commitment?
Aditya Rao
Thank you for the question. My comment on that is there has been no retraction. We have absolutely have plans in place to allow our profit to grow at 20% per quarter. As I mentioned for one of the questions of a previous caller, we are quite confident that our ability to hit 20% is dictated by our operating margin being what it needs to be. And but for these one time costs I think we would have hit it. It came in quite late in the quarter. I think only in the month of December or maybe even January would be when we, we realize this so that we had tools in place in order to make sure that we hit that 20%.
There’s a tremendous amount of leeway we have on our operating margin on what we can, what we can pass through steel price increases. We can pass that and there’s a certain time frame we do we target operating margins and operating margin growth. So from what we have on our plate right now, our order backlogs, the revenue streams, our customer and our capacity, we are quite confident of delivering 20% growth. So there’s no in profit. So there’s no, we’re not, there’s no correction that we’re offering on that. These plans that we have a long term, they’re not dictated by any short term events such as steel price volatility or even things such as markets for example.
So we’d like to commit that and recommit that. We are committed to that number. Double digit profit growth. And yes, what you mentioned, 20% is absolutely the stated target for us.
Nitin Jain
Right. And my last question is specifically to the PV business. It seems that like maybe due to some new reason every quarter, we are consistently underperforming every quarter compared to what commitments we have made in the previous call. And I think somewhere it is reflecting in the market strong reaction to the price as well this morning. So is there any particular reason why we are consistently over promising and under delivering in that business?
Aditya Rao
I mean I would hesitate to attribute short term share price movements to any particular aspect of it. I think our duty is to make sure that we are communicating exactly what we are going to achieve from a revenue point of view. Double digit revenue growth. Exactly what we are going to achieve on a profit growth and that is what we are going to continue to is executed on that plan. And the most important thing for us is that we say what we do. Coming to the baby space we had highlighted the concern. We had on labor, which led to lower capacity utilization.
There was nothing wrong with the market per se. Our order backlogs remain strong. We have not fixed those issues. So that will continue to deliver growth. And I think I cannot comment on what the share price does on the short term basis. What I can commit to is as our profit growth. It is, I believe, our expectation that the PE multiple holds up, which drives up our market cap, which drives up our share price. So we’ll continue to execute on that. What we, as the executive team can commit to is that what we promise you, we will ensure, we will achieve.
We will make every effort that is possible to achieve. And we are very confident, most importantly, that we will achieve these numbers. So as far as PEB is concerned, we had highlighted an issue and we have solved that issue. So. So that’s. That would be my. That would be my connection.
Nitin Jain
Okay. That’s all from my side.
Aditya Rao
Thanks.
operator
Thank you. We take the next question from the line of Chetan Kumar from Coherent Wealth Ltd. Please proceed.
Chetan Kumar
Hello. Am I audible?
Aditya Rao
Yeah.
Chetan Kumar
Hello. Yeah. Thank you. Thank you for the opportunity. So my question was in terms of capacity utilization, could you just give us a number on what was the utilization for this quarter?
Aditya Rao
So capacity utilization is a blend across many businesses. There’s some businesses, for example our tubing business in steel, where we are near extremely high levels of capacity utilization. As I referred to on a previous thing, for the last couple of quarters, our PEB capacity utilization has been on the lower side. But that’s something we have now fixed and that will Trend up above 70% as a blend. Overall, we’re still at about 70% capacity utilization across all of our revenue streams.
Chetan Kumar
Right. Okay, thank you. And my second question was in terms of which sectors are we seeing growth in the baby aside, like where are we getting the owners from and which industries are looking for this space?
Aditya Rao
Apologies, could you. Your voice, could you repeat that question please? I heard it was a little muffled. Your voice, if you could repeat the question.
Chetan Kumar
Yeah, I just wanted to understand which industries in the PV segment are growing, whether it’s the data centers, infrastructure, oil and gas. So which sectors have we seen some traction coming from in the PEB space?
Aditya Rao
Okay, I think the question, and correct me if I’m wrong, your question was in which, from which sector are we seeing the order info come in? We are primarily seeing it in the process engineering space, the automotive space, and the high rise building space. Those are the three growth vectors where we’ve received significant order inflows.
Chetan Kumar
Perfect. Thank you.
operator
Thank you. We take the next question from the line of Mirage Shah from CJ Shah. You may proceed.
Miraj Shah
Thank you for the opportunity. Most of my questions were answered but for my couple of questions that are still remaining, if you can just once again touch upon how steel prices are impacting the increasing steel price or the decreasing steel price that impact in the PEB space. You did mention that you have some short term contracts and some long term contracts. So if you can just highlight it a bit, a bit more so that I can understand how the long term contracts will work over here. That’s my first question. And on the second question on PEB side, if you can explain what exactly do we do in a high rise building, what exactly is the component that.
We service over there?
Aditya Rao
I’ll request. Let me ask the first question. I’ll request a little bit of clarity on the second question. So as far as steel prices are concerned we are not a perfect but a near perfect pass through. And as Srikanth had mentioned, the way this happens is we have quarterly rate contracts with steel. So any steel price increase, typically we have one and a half to three months to pass on what we need to depending on when that price increase comes in. So that’s an advantage. More importantly a lot of our contracts have price escalation clauses.
So it’s effectively a pass through. What we do need to be careful about when this massive steel price increases is that we retain not just the spread but also the percentage. So that, and that’s something that we are very clear with our customers on that we are going to request and demand a certain operating margin in these businesses, a certain margin after variable and on that basis we tend to pass through everything that we get. That’s as far as steel pricing is concerned and the impact of that on our revenue and our margins. The second question that you mentioned could just clarify that.
So please. If I wasn’t sure I understood it well enough,
Miraj Shah
no. So I wanted to understand in a high rise building that we do compared to any other building because in PE usually we are doing, we don’t do extremely tall structures. So I wasn’t sure what exactly is a high rise building that we make over here. If you can just explain what is the high rise building and do we do the entire building or do we do only selected concept components of that structure? If you can just explain on that.
Aditya Rao
It’S fine. The scope of services we provide in other high rise building sector is very similar to what we provide in the pre Internet building sector which is we provide design, manufacture components and shipping Design and these are primarily the structural framework of the building. So building shells if you will. So we don’t do interiors, we don’t do lighting, we don’t do H Vac, we don’t do any of that. The difference between what we would do in the pre engineered building space and what we would do in the high rise space is that it tends to have more floors so incorporates elements such as structural decking.
And in the design itself, for example, we would be taking into account the compressive load which is much higher. So traditional peb very very seldom goes above four floors. Even with intermediate mezzanines and structures. Ground plus four high rise buildings, you’ve done as high as ground plus 16 and it’s the same model. It’s a very similar timeline. And we come in after the civil has been done, we wreck the structures, we write the intermediate floors and typically about three to six months is the duration of the project. That’s the scope and the timeline and the value proposition we provide in the high rise building space.
Miraj Shah
Understood? Great, thanks a lot for answering the questions. I think sir, you mentioned in the pass on. You’ve mentioned that you pass on with the percentage as well. Right. So you’ll be benefiting with increase in spreads, absolute spreads.
Aditya Rao
That is correct. And this stands for India, the U.S. even in the U.S. you do tend to see these price swings. So we pass on margin and we pass on percentage. In the case of price increase. In the case of price decrease we try to. And a lot of this is automated. It’s not really that we have to go ask our customers whether it’s a price escalation contract or SIAM automotive index link pricing. If these price increases come in automatically, they contractually baked in so we don’t have to do much. Most importantly is from a risk management point of view, we are not exposed to dramatic issues with our margins.
In the case of raw rental prices, price increases, that’s what we aim for.
Miraj Shah
But in falling prices we would have to pass on the benefit as well. Right? Our spreads would contract.
Aditya Rao
That is correct. And we have seen that happen historically where steel price falling, precipitous steel price falls, we retain as much as possible. We try to retain the value at that point and not the percentage because then. But we found that it wouldn’t be fair of us to demand a percentage when it’s going up and then say no, it’s only value added. So there is that element to it. But as it stands, I think commodity price crashes are quite, quite rare. So I wouldn’t see it as a high end risk as a high value risk for us.
Miraj Shah
Great. Thank you so much for answering my questions.
Aditya Rao
Thank you.
operator
Thank you. We take the next question from the line of Ashi Soni from family office. Please proceed.
Ashish Soni
So what’s your capacity utilization of rivalry plant on 31st December and currently.
Aditya Rao
So that’s rivalries has gone up. As of right now we are at about 60% capacity utilization. We’ll get to 70 by the end of this quarter.
Ashish Soni
And second question on the excel us their order book is like hovering between like 50 to 55 billion USD. So are we not able to scale that or are we not able to get more orders in US business?
Aditya Rao
Not at all. I think we’re at a place now especially with the new Express line getting commissioned. We’re at a place now that we are going to be increasing that order backlog as well. So I see with the addition of new DMs and I’m speaking specifically for SN buildings and not for Telco, that’s a different business model. But with the addition of our Express line and a new sales team also has come on board I see absolutely no issues with us being able to scale our order backlog. The one nuance here is in India you can keep these six month, eight month, nine month even longer than that.
Sometimes order backlogs in the US it’s much shorter generation. I mean six months is the max really. You ideally should not hold much more than that because customers expect quicker Delivery in the US.
Ashish Soni
Any plans to because your 70% utilization will happen by end of this quarter. You’re seeing any plans for any more plants in PEB in India?
Aditya Rao
We will get back to you on that sir. There are discussions we are having on this but I think once we now put the labor issue behind us once we reach high capacity utilization in PEB we will we will look to further expand capacity. But as of right now I don’t have the numbers for you on that next quarter we put something in front.
Ashish Soni
Of and one last question. Any plan for the land bank you.
operator
Have Ashish, I would request you to join back the queue as there are several participants waiting for their tone.
Ashish Soni
Okay.
operator
Thank you. We take the next question from the line of parish of Shah from Mehta Equities. Please proceed.
Parshv Shah
I want to ask about the repeat. Orders of our PEB orders.
Aditya Rao
So a significant component of our auto backlog is repeat. Sometimes it trends above 50%. Right now I don’t have an exact number but but I’m quite confident it’s a high number because all of the large customers that we have, whether it’s jsw, whether it’s Godrej, whether it’s my home and Antia Pharma, all of those are repeat customers. So the proportion of repeat customers in our order backlog is high and it has always been high.
Parshv Shah
Okay. Okay. And on the same line of as per our rebit order system code. So existing order. But do you see another side of the coin? That we have a lower bargaining power and high dependency on this kind of customer base.
Aditya Rao
I’m sorry, could you repeat the question? You said lower buying power. Is that. Could you elaborate?
Parshv Shah
Yes, yes. High dependency on this kind of a customer.
Aditya Rao
No, I wouldn’t say that. No Customer contributes more than 6% of our revenue. It used to be higher. 7, 8% that’s actually come out. As we grow. The diversity of our customer base is quite high. So we’re not very dependent on any customer and we don’t do any government revenue either. So it’s entirely private sector. It’s very diversified. So customer risk is quite, quite low. There is no possibility that exposure to a limited customer base reduces our revenue. I don’t see that happening.
Parshv Shah
Perfect. Perfect. All the best. Thank you.
operator
Thank you. We take the next question from the line of Avinash Tiwari from Vaikara. Please proceed.
Avnish Tiwari
Hi, can you give some mix or color on your USPB order book in terms of whether it is construction related, manufacturing related, warehousing, data centers. Whichever color you can give current order book or once you are building up right now.
Aditya Rao
So 52 is a blend. It’s geared more towards warehouse and data centers. Data centers is doing quite well in the US A major driver of a US order book and why we are very confident that can scale also is this. Discussions are having on this. So yeah so the primarily it is that.
Avnish Tiwari
Okay, last question to Srikant this. Do you have. Did you have any acquisition related cost as well in Q3 you have largely booked in Q2 but was there anything in Q3 also or Q3 was clean. Out of it
Shrikant Bhakkad
slightly. I may be 1 or 2 crores additional cost would have come but it’s. Nothing more than that. I think majority of the cost was recorded in Q2.
Avnish Tiwari
Okay, thank you and wish you very best.
operator
Thank you. We take the next question from the line of Vinod Krishna from Evandes Wealth. Please proceed.
Vinod Krishna
I’m audible.
Aditya Rao
Yes please.
Vinod Krishna
Can you throw more light on competitive landscape in both US and India in terms of peb like in us I know you’re a very small player. So what is giving us the confidence that we can scale up and as the previous participants asked be, where are we are just. I won’t use the word stock, but the order book looks around, it remains at the same. 55, 60 million. 50 million. So how many, how can we scale and why do you think we can scale in US and India? How is the competitive landscape changing? Are the new players entering or how is our market shares trending in India? So if I made myself clear.
Thank you.
Aditya Rao
So let me first clarify the 52 number. As you are aware, if you look at the total order backlog in the US which includes Telco plus US buildings, perhaps we have not been clear on that. If you combine both of the 62 million and that’s at a 30% growth over the last six months. So I wouldn’t say that we are unable to grow our order backlog in the us I would say it’s quite contrary and we expect this to grow even further. So I don’t see a challenge in scaling our US business revenue. In fact, double digit growth, as we keep saying, double digit growth and that sometimes that’s quite a big range.
But our US business is in a great place to grow quite strongly and we are quite confident of that. And that’s on the back of a fast growing order backlog and new capacity that’s been commissioned. So that’s as far as the US is concerned. And comparative intensity in the us you are right, we are a smaller player. We are not in the top five. We are probably not in the top 10 either. But I think we made a great beginning. And the market size in the US is so massive that all we have to do is keep pushing out our market envelope from the Midwest and the south where we are at right now, little more towards the West.
We don’t do a lot of deep south either. I think that will ensure that we have enough to sustain a high growth rate for the foreseeable future. So that’s how we see the US as far as India is concerned. The comparative intensity in India, we would be either number three or number four, depending on who you ask. With rivalry having been commissioned and with these issues that we’re having on labor, I think our capacity utilization increasing helps us scale as well. So as the rest of the market is growing, I’m quite confident we can grow as well.
So our competitors seem to be doing well. We will intend to grow and scale our business as well. In line with them. We are not really curtailed by Order backlog. From what I’m hearing this 810 crores, 820 crores. Going to even 900 crores is not something that’s prohibitively difficult to do. But we needed to fix our capacity utilization issues and that’s what we are focused on. I’m quite confident both us and India from a metal building space is in a good place for the next, not just for this quarter and next quarter this year, but over the next few years as well.
So.
Vinod Krishna
My question on us was what is allowing us to grow when we are such a small guy and it’s an established industry? What are the factors or the tailwinds that we tailwinds for the market is there, but what is that is allowing us to grow?
Aditya Rao
Okay, so I think what dictates are anyone’s ability to grow in a market is a large addressable market and quality assets. So in a B2B business, if you have B2C is harder. Of course, let me not speak on B2C. We have no knowledge of those business verticals. But in the B2B space, what our philosophy is is that if you have good quality assets, which is not just production capacity, but good engineering talent and good DM relationships, which is what we tend to focus on in the US So just these focus on these issues. In fact, just having good quality DMs itself, sales itself puts us in a position where we can very quickly take market share.
So that’s what’s driving our growth in the U.S. we’re now present in the U.S. for five years. We started off at about a $20 billion level and now in the U.S. our revenue streams are this year we expect it to be much higher, north of 110, 20 million. So I don’t see if the narrative is with a small player we’re competing with much larger players will not be able to grow. That is, I am 100% confident is not the case.
Vinod Krishna
Thank you, sir. Thank you very much. All the best.
Aditya Rao
Thanks.
operator
Thank you. We take the next question from the line of Pratik Bhandari from Art Ventures. Please proceed.
Prateek Bhandari
Yeah. Hi sir. Thanks for the opportunity. So sir, if I exclude your other income, which was relatively 16 crores during the quarter as compared to almost 7 crores during the same quarter last year, then there is a degrowth in the EBITDA as well. So when you say about your EBITDA margins and when you guide for the EBITDA margins, you know, do you guide inclusive of other income or how should we take it as inclusive of other.
Aditya Rao
Income, inclusive, other income. And again, I don’t want to belabor the one time expenses point too much, but what we’re committing to is one time means one time. I shouldn’t come back to next quarter and say there’s more one time cost, right? I mean, that doesn’t make sense. So I think what we are guiding you to is sustainable ebitda. EBITDA margins all growing year on year for us.
Prateek Bhandari
Okay. And also sir, one request, if you can, you know, in your presentation, if you can give some detailed data about the different aspects in terms of order booking, in terms of the growth of those verticals, it would help us understand the business verticals better in S2C, understand which of the verticals are growing and which are lagging behind. So just a request at that end.
Aditya Rao
Understood. So for these five verticals, all of which tend to be order backlog based or scheduled customer base, we will submit a table soon. Give us a quarter or max 2/4 on this. We’re getting our ducks lined up on this. I am quite confident that in the near term itself we will be able to give you what you’re asking, which is for these five growth vectors give you an idea every quarter on what the market size is, what our order backlog is, what our projected revenue is going to be and the operating margins they’re functioning at.
I think that should go a long way towards explaining how what we’re going to grow and how those sectors are growing. So point taken and I agree with you
Prateek Bhandari
absolutely because those would be self. Explanatory because you know, you would also be seeing that there comes repeated questions on those verticals and the trajectory and how we are growing and in terms of order books. So that would really be helpful for the, you know, for everyone’s sake. Thank you.
Aditya Rao
Understood.
operator
Thank you. We take the next question from the line of Vedant from MAS Investments. Please proceed. I would request Mr. Vedant one mute and then speak.
Vedant
Are they able to hear me, sir?
Aditya Rao
Yes, go ahead please.
Vedant
I want to know how will your US business landscape change with the cut in sectoral tariff that is being discussed in a few sections.
Aditya Rao
Could you repeat that?
Vedant
US sectoral tariff in US is around 50%. Right. So I wanted to know if that is reduced. So how will our US business cope up with that?
Aditya Rao
I think a major growth vectors are India and the US India is about 60%, 35% is the US, 5% is Europe, more or less that proportion will sustain. So the growth rates we are seeing in the US and the growth rate we’ll see in India and the they may be quarter to quarter differences, but over the two, three year time frame, I think both are poised for extremely aggressive growth. And we are quite happy with what the base we have set up in the US So.
Vedant
Remain same or increase or decrease in the US business. If the US sectoral tariff is.
Aditya Rao
No, margins in the US tend to be remarkably stable. It’s to some extent, I think the claim can be made that it is a less competitive space, but it is a geography where you want to invest a lot of time. I think one of the advantages we have is that we have been there directly with assets, with factories and others for five years and through the pandemic and through other periods of economic stress as well. So we understand the market well, but I think it’s a market where you invest a lot of time, but once you do that margin can stop.
Margins tend to be stable. There’s no, there’s less price gouging and aggressive pricing. All of that doesn’t really happen. It’s very stable as a market.
Vedant
Okay, thank you sir. That’s it.
Aditya Rao
Thanks.
operator
Thank you. We take the next question from the line of Rahul Kumar from Vaikara Fund. Please proceed.
Rahul Kumar
Yeah, hi, this last question, this is on the US business. If you can just quantify how has the order pipeline moved now versus what it was last quarter?
Aditya Rao
So we had strong order booking in the last few months. I think as I mentioned in a previous caller’s question, we’ve increased our DM team and we also added a new line of sales team, we call it Express plus, which is faster cycle time. Buildings, a lot of automation also in the manufacturing. So combination of all of that, the overall order backlog has grown. I think if you combine both revenue streams and buildings and structural buildings. If you add telco, you get to about 62 million. That’s a lot of backlog right now. We have every expectation that this is going to grow for that.
Rahul Kumar
I was actually referring more to, you know, the bid pipeline which is there, the, based on which, you know the success rate gives you this 52 and $10 million. So I was wondering more, what is the bid pipeline in the us
Aditya Rao
by. Pipeline do you mean lead generation, quote activity, order booking? Do you mean that, that, that sales cycle? Okay, so I don’t have those numbers for you right now and I will work, I’ll work together. I mean it’s, I can tell you it’s healthy. But I think the best way to illustrate that is what is our quote activity? I will come Back to you with a number.
Rahul Kumar
The second question Srikanth, can you help us understand in the diversified engineering segment how much was the tooling sales in this quarter versus versus the last quarter.
Shrikant Bhakkad
Overall there was a BIW sales. Tooling sales have not been not been major change in the current quarter from. Last quarter quarter to this quarter. Overall the increase has come from steel business boiler and biw. But yeah tool is not one time. Event which has triggered now.
Rahul Kumar
Okay, understood.
operator
Thank you. We take the next question from the line of Aniket from crk. Please proceed. I would request Mr. Aniket to unmute and then speak.
Aniket
Hello.
Aditya Rao
Sorry.
Aniket
Sorry. Sorry. Almost all of my questions were already answered but I would still like to ask more upon the PEB part. Like can. Can I know like what sort of like order books we have Once again because I missed the earlier given number.
Aditya Rao
The voice and clear. But yeah, I think this is a.
Shrikant Bhakkad
Repetitive question but I would like to clarify the PEP order book stands at 810 crore. The Aspen company sort of book stands with Ascent buildings specifically 52 and as in structural 10 million. So if you’re asking what’s the order. Book that’s the answer.
Aniket
Thank you. I missed the previous given. Thank you. Thank you for that.
Aditya Rao
The voice isn’t clear.
Aniket
Okay.
Aditya Rao
All right. All right. Yeah okay.
Aniket
My most of the questions were answered already. Thank you.
operator
Thank you. We take the next question from the line of Ankit an individual investor. Please proceed.
Unidentified Participant
Hello sir. Am I audible?
Aditya Rao
Yes, please go ahead.
Unidentified Participant
Yeah, thank you for taking the question sir. On. On. In terms of as in people have already asked this question but let me rephrase it in terms of our EBITDA because if you are including other income. I think you also said there is 8 crore of receivable which we have. Received in this quarter which logically should be one off. So if I exclude just that number I think our margins have gone down. So can you comment what why is. That and what is your outlook for the coming year? Quarter and years.
Shrikant Bhakkad
Yeah. It includes write back of credit discounts as well as the receivables. Those are all other income which are basically the provisions which we make right. Back of those provisions kind of a thing. So as I said I have. We have exchanged in our earlier call. When you when you look at us look other income as part of operating income and and go through it and remove those one time expenses that we have.
Unidentified Participant
Sorry. On this 8.8crore of receivables. Do you expect this number to kind of continue going into future or how should we look at it.
Shrikant Bhakkad
Some portion will continue to come into picture. But some portions, which is a one time of write back of receivables and other things that we have, that is not. And write back of receivables and other things is not a substantial number.
Unidentified Participant
Got it. And so what is our outlook for Q4?
operator
Mr. Ankit, I would request you to join back the queue as there are several participants waiting for their turn. Thank you. We take the next question from the line of Sudarshan Bojoria and individual investor. Please proceed.
Unidentified Participant
Yeah, hi, just wanted to. Can you hear me?
Aditya Rao
Yes, please go ahead.
Unidentified Participant
Yeah, last call. Also you mentioned that labor issue is. Behind behind Our course and Q3 should. Have been better compared to what we have done. Obviously that doesn’t seem to be. But can you assure us now that Q4 will have no impact of any of your past issues?
Aditya Rao
We have solved the labor problem. We solved it late last quarter. The impact, the positive impact from that would not have been seen in the full quarter. However, in this entire quarter you will see, in fact, let me make it clear this, you will see much higher levels of revenue in EB India this quarter compared to last quarter. So that we are absolutely putting on the table.
Unidentified Participant
Great. And the second point is with the current capacity of eeb, what could be. Our maximum monthly revenue we can generate.
Aditya Rao
If you were to combine India, the US and the US both for PEB and Structurals are at peak capacity. Let’s say, let’s say 80, 80% I think is fair. I don’t think we should go much higher than that. We will absolutely be able to hit a revenue number closer to 200 to 220 crores per month.
Unidentified Participant
Okay, great. I hope that we give better results. This quarter onward because last quarter has. Been bit of a disappointment. But we keep our finger crossed and. We hope no more one time expenses. Comes in the picture. In the future.
Aditya Rao
We will take it to heart and ensure that what we have committed, we deliver.
Unidentified Participant
Okay, thank you.
operator
Thank you. As there are no further questions from the participants, I would now like to hand the conference over to the management for closing comments.
Aditya Rao
Thank you for your questions and thank you for your support and we look forward to deliver on everything that we have communicated today. And we are quite confident that we have a great quarter and a great next financial year ahead of us. Thank you. Thanks to all of you again for your support. Sirs.
operator
Thank you on behalf of Philip Capital India Private Limited. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.