PITTI ENGINEERING LIMITED (NSE: PITTIENG) Q3 2026 Earnings Call dated Feb. 06, 2026
Corporate Participants:
Akshay Pitti — Managing Director and Chief Executive Officer
Analysts:
Unidentified Participant
Rahul Kumar — Analyst
Balasubramanian — Analyst
Avnish Tiwari — Analyst
Abhijit Mitra — Analyst
Presentation:
operator
Ladies and Gentlemen, good day and welcome to the PITI Engineering Limited Q3 and 9 months FY26 earnings conference call. 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 the date of this call. These statements do not guarantee the future performance of the company and it may involve risks and and uncertainties that are difficult to predict. 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 presentation concludes.
Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your Touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Akshay S. Pitti, Managing Director and Chief Executive Officer. Thank you and over to you Sir.
Akshay Pitti — Managing Director and Chief Executive Officer
Good afternoon everyone and thank you for joining us for the Q3 and 9 month FY26 earnings call of PITI Engineering Limited. Along with me are the senior management team from PITI Engineering and sga, our investor relations partners. We have uploaded our results and related documents on the stock exchanges and the company’s website and I hope everyone had an opportunity to go through the same the past few quarters have been about laying the groundwork for the next phase of growth. We have been focused on improving execution and steadily increasing the share of value added and integrated products in our portfolio.
This reflects continued progress on that journey with improving mix, better visibility from customer and disciplined capital deployment. Let me now briefly touch upon the overall business environment. Demand during the quarter remained steady, supported largely by indirect exports and a gradual shift in global sourcing towards India. Cost pressures in other manufacturing regions have continued to make India a competitive destination and we are seeing this translate into sustained inquiry across multiple end markets. While some domestic segments are showing high growth, the remaining are stable. Our export linked businesses continue to provide incremental momentum. Tariff developments have recently turned more favorable with a reduction in US Tariff on India, improving visibility for export oriented businesses such as ours and supporting customer confidence across key markets.
Over the past few years we have steadily strengthened our capabilities in machine components and integrated products and this is the continued focus of the company which is now translating into better customer traction and stronger market position. As a result, we are seeing encouraging engagement across segments which gives us confidence about sustainability of the demand going ahead. Moving to industry and segment performance, we continue to witness strong broad based demand across key end user segments including railways, power generation, data centers, industrial motors, renewables and mining. This robust demand coupled with consistent execution has enabled healthy capacity utilizations.
Railways remain a key focus area and major growth driver for the company both through domestic and international supply chains. During the quarter, traction motors and railway components contributed 31.9% of total revenues. Reaffirming its strategic importance, power generation delivered a Strong performance contributing 14.4% of revenues while industrial and commercial applications accounted for 13.9%. Data center segment showed particularly encouraging momentum with revenue contribution increasing from 2.7% the previous quarter to 3.7% in Q3 FY26. This reinforces our confidence in the segment’s potential to grow faster than the broader industry over the medium term. On the volumes front for Q3FY26, total lamination volumes grew by 21.1% on a YoY basis to 16,823 tons, up from 13,891 tons in Q3FY25.
Total machine components volumes increased 7.7% on a YoY basis to 2,967 tonnes. By products including trade seals and steel coils recorded a volume of 17,155 tonnes. For the nine month ended, total lamination volumes rose 11% to 48,155 tons while total machine components volume grew 18.6% on a YoY basis to 8,042 tons. For detailed bifurcation of volumes, please refer to our investor presentation slide number 19. From the financial perspective, we remain focused on improving margins through higher share of machine and integrated product shark integrated products lamination margins remain steady while machining and value added assemblies continue to deliver meaningfully higher profitability.
As the mix improve, we expect overall margins to trend upwards in the medium term. As regards to capacity expansion and outlook, our capital expenditure plans are progressing as scheduled and are closely aligned with anticipated demand. We approve 150 crore rupee. Capex has been executed in phases and expected to be fully operational by FY27 with incremental revenues coming in the same year. In addition, we have structured the CapEx pipeline over the next three years to support medium term growth and further enhance our value added capabilities. With strong customer forecast and visibility extending up to two years, we remain confident that our current planned investments are well positioned to support sustained growth and now on to the financial performance.
Total income for the quarter grew by 15% on a YoY to 484.3 crore rupees compared to 421 crore rupees in Q3FY25 for nine month period, revenue from operations increased by 13.9% to rupees 1447 crores up from rupees 271 crores in the nine month FY25 adjusted EBITDA for Q3FY26 stood at rupees 83.3 crores registering a growth of 24.5%. Adjusted EBITDA margins expanded to 17.5% compared to 16.1% in Q3FY25 for nine Month ended FY26 adjusted EBITDA increased by 26.6% to rupees 241.8 crores with adjusted EBITDA margins improving to 17.1%. Adjusted part after accounting for ESWAP expenses and net of tax stood at 30.0 crores for Q3 and 97.1 crores for nine month FY26 reflecting a YoY growth of 4.4% in Q3FY26 and 12.7 for the nine month period.
Finance costs were higher during the period as we continuously maintained elevated inventory levels. Given the continued uncertainty around the availability of BIS certified steel from import sources, this approach helped us ensure uninterrupted execution of customer orders amid challenging global environments. Going forward, we have secured tie up of BIS approved steel for mills in Korea and Japan. With these arrangements now in place, we have started liquidating the excess inventory and factoring receivables. This is expected to release significant working capital and lead to a reduction in finance cost. Domestic revenues contributed 72% of total revenues during the nine month period while exports remain stable at 28% of revenues.
Despite global uncertainties and geopolitical challenges, looking ahead, we remain confident about our growth trajectory over the next few years. We see a clear path to scale revenues while improving profitability supported by capacity expansion and deeper customer engagement. Our focus remains on disciplined execution, capital efficiency and building long term partnership with our customers. With that, I would like to open the floor for questions and answers session.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session and anyone who wishes to ask a question may press Star and one on the touchtone telephone. If you wish to remove yourself from the question queue you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Rahul Kumar from Vaikariog Fund. Please go ahead.
Rahul Kumar
Yeah hi just on this quarter results I think the exports are down on a YOY basis. So what drove that and what is the outlook over here?
Akshay Pitti
Quarter three Normally is slightly slower. We had very strong quarter one and quarter two. Quarter three, I think is just about the customer balancing the inventories. Quarter four again looks to be strong. So there’s nothing, you know, specifically contributing to it. It’s mostly supply chain realignments.
Rahul Kumar
Okay, got it, got you. And I think for your exports to Mexico, you know, I think there is a certain amount of tariff which is being discussed to be levied, you know, on non FDA countries. So what are the, you know, discussions happening over there?
Akshay Pitti
So Mexico has the same tariff that US had imposed under Section 232 for their free trade region. And that continues to be in effect as of date. In terms of engagement with the customer, I don’t think that has any meaningful impact on our sales performance to that region. We had a small discount that we had given last quarter to secure those supplies. And I think the same will continue to be in force over the next few years.
Rahul Kumar
Okay, okay. But over there, for the, you know. The supplies to Mexico, I mean, who would be the competitor for our products?
Akshay Pitti
It would be again, China, Vietnam and all these countries.
Rahul Kumar
Okay, okay, okay, okay. And the third question is, I think last time I think you had mentioned that, you know, to grow the business business, you know, in you for your exports business, I think you, you are in discussion with customers to, you know, take some pain on your, or share some pain because of the tariff, etc. So, you know, how would those discussions not change if at all? And are there any developments over there?
Akshay Pitti
See, even the, even the pain that you had discussed taking was mostly symbolic. As I had mentioned the last call, given the scope of tariff, it was huge. And even now with the lower tariff with America, it’s something that a company like us cannot afford. We are into contract manufacturing at the end of the day. So whatever we were doing was mostly symbolic in terms of sharing the pain. A more viable strategy was to ensure that we bring out a supply chain which is more competitive at a net cost basis. So by increasing value add and integrating more products and therefore, you know, reducing the amount of value add that happens in US which is already a higher cost country, we will be able to reduce the cost of the total product to the customer, the way the customer uses it.
So that is a strategy that we are continuously engaging with the customer to ensure that we maintain and grow our market share.
Rahul Kumar
Okay, okay, got it. And I think, can you help us understand also more on the new orders for the exports in US and Europe.
Akshay Pitti
So in US and Mexico, basically North America, the order pipeline for My largest customer in the region remains strong in terms of new customer acquisition. We had two customers acquired in the Mexico and US region in the last two quarters and another two customers are in active engagement to get the orders. I think with the current tariff situation in U.S. those discussions should pick up more steam. As far as Europe is concerned, that region is continuing to grow steadily for us, I think it’s already contributing about 4 to 5% of the revenue. And going forward I think it should be a significant contributor to our machine components business.
Rahul Kumar
Okay, okay. Okay. Understood. Thank you.
operator
Thank you. Ladies and gentlemen, if you wish to ask a question you may press star and 1. The next question is from the line of Bala Subramaniam from Arihant Capital. Please go ahead.
Balasubramanian
Good afternoon sir. Thank you so much for the opportunities sir. On the export side nearly 70 percentage of our business, railway business coming from international side. I just want to understand is there any customers or like differing, is there any delay in dispatchments in this Q3 and I think India us the tariffs also get reduced 50 to 18. How we are getting like inquiries and how we look at in coming quarters.
Akshay Pitti
So we are not seeing any deferment of order. Like I said, you know it is a normal alignment of the supply chain depending on the lead time that is available in the current shipping time that it’s taking. So there’s no deferment in quarter three specifically. And as far as you know the benefit coming out of the trade deal, I think it is very recent for us to quantify it. But I think going forward, like I said the two customers which were on the fence in the US region, the improved tariff situation with us would help us, you know, hasten those customer acquisitions.
So in the mid to long term I think it’s a very good deal for the country and for us specifically. Indication from the customers. But some challenges were there in terms of customer concentration, project timing, like our competitive pressures. I just want to understand how this industry is shaping up and how this recent budget also supportive for data center side and how we are going to contribute in upcoming data center story. So data centers continue to remain a extremely fast growing market for us. It continues to surprise us quarter on quarter. I think Q3 we had 3.7% revenue coming from this segment and by all indications from our clients over the next 12 to 18 months we should look at these 25 to 30% growth in this segment. So data centers continue to remain strong. That’s all I can say about this segment.
Balasubramanian
Okay. Sir. Sir. Out of 150 crore capacities how much is planned for FY26 and FY27? How the capacities will gradually add up? If you could share more clarity.
Akshay Pitti
So we have already expended close to 80 crores in terms of capex. Most of the capacity shall be coming in the next financial year and by end of FY27 all of the capacities will be commissioned progressively.
Balasubramanian
Okay, so if you could share, I think you mentioned about railways, power and renewables in your commentary, you could share about appliances and consumer durables, automotive pumps and special purpose motors and mining and oil and gas side how this Q3 was done well, which are the segments we are getting traction?
Akshay Pitti
The segments that you mentioned continue to remain stable. The segments which I had been highlighted in my speech are segments which have outperformed the market, so to speak. So pumps, appliances, automotive, especially EVs continue to grow steadily. Not significant growth. Power generation and data centers have demonstrated no significant growth.
Balasubramanian
Got it sir, thank you.
operator
Thank you Ladies and gentlemen, if you wish to ask a question you may press star and 1. The next question is from the line of Mohit Gentam Dia Chocins of Private limited. Please go ahead.
Unidentified Participant
Hi sir, good afternoon. So my first question is on this elevated inventory levels. Like you said you maintain this inventory levels for the nine month period because it was more of a strategic decision to mitigate supply chain risk regarding BIS and all. So given that could you quantify what is the current inventory days and since you are also in the process of liquidation of those excess inventory because of Korea and Japan tie ups, could you quantify where do you see inventory is going from the current levels?
Akshay Pitti
Yeah, so as of 31st December we had approximately 500 crores worth of inventory and we expect this inventory to go down to our historic levels about 300 crores worth of inventory. So about a 200 crore reduction in raw material is what we are looking at over the next three months.
Unidentified Participant
And sir, again since the finance cost is risen because of excess working capital due to inventory levels and from the current level of finance cost, where do you see finance cost in the entire next year?
Akshay Pitti
FY27 so net of the CAPEX that we are expected to incur in the next financial year, I think we estimate a 15 crore reduction in finance cost for next year.
Unidentified Participant
Okay. And basically the 15% growth this quarter is phenomenal given the geopolitical risk and the is supply chain risk we are facing in the last slide. But. So we had this guidance of like 1900 to 2000 crores of revenue in the entire year. I Know the nine month lot of things have happened. But how confident are you to you know, touch that guidance level in the Q4 of FY26 and. Okay, you are.
Akshay Pitti
Yeah, yeah. So if you see nine months, we’ve already done about 1447 crores of revenue. And even if you maintain the current run rate, we are estimated to hit somewhere on 1950 which is the midpoint of our guided value. So we are very, very confident of hitting the guidance.
Unidentified Participant
So you’re saying Q4 will be will have a phenomenon growth of above 25%. I mean based on the best calculation, enter this the tariff which the US tariff of 18%. When do you see Mexico reducing the tariff as well?
Akshay Pitti
Just coming back to that. I’m thinking we did about 484 crores of revenue in Q3. Even if we expect the same revenue in Q4, we are hitting our target. I’m not seeing the 25% growth in next quarter. Just to clarify, just answering your next question on the Mexico tariff. I think that’s something I would not want to speculate. But logically if they were the ones who were led into a tariff by us, I think now that India and UF has struck a deal, it is only logical that in the near future India and Mexico will sign a similar deal.
As far as you know, a repeal on Section 232 tariff is concerned, I think that’s a longer term discussion. I don’t think anything will happen on that in the near term.
Unidentified Participant
Okay, sir, thank you. All the best for feature.
Akshay Pitti
Yeah, thank you.
operator
Thank you. Participants, if you wish to ask a question, you may press star and 1. The next question is from the line of meet ranch from Icarus pms. Please go ahead. Sir, you may unmute your lines.
Unidentified Participant
Yeah, I’m audible now.
operator
Yes sir, you’re audible.
Unidentified Participant
Yeah. Again for data center business. So just wanted to understand where are we present in terms of data center value chain products etc. And who are the main competitors here in the domestic market?
operator
Sorry to interrupt. The line for the management has dropped. Please stay in.
Unidentified Participant
Oh, sorry, sorry, I was on mute. I was thinking we make basically status and voters for our customer which is used in the DG sets in data centers. Our main customer here is Common Senator Technologies. And in terms of competition we have about 90 plus percent market share in this product with them.
Akshay Pitti
Sorry, I missed. What, what are the main products? Data and rotor which go into the generating sets. Electricity generation sets.
Unidentified Participant
Okay, okay, okay, okay. Understood. And second, any update on or progress on plan our entry into forging Business. Those are very longer term strategies.
Akshay Pitti
I think right now we are still focused on growing the existing business. We will look at it once we have critical scale in terms of our consumption of forgings. Today we consume roughly about 250 to 300 tons of forgings in a month. Once we get to a critical scale where we feel we can do this captively, we shall export it at that stage. Okay. Okay. Thanks.
Unidentified Participant
Thanks. Those were my questions.
operator
Thank you. Participants may press star and one to ask a question. The next question is from the line of Avnish Tiwari from Vicaria Change llp. Please go ahead.
Avnish Tiwari
Hi, this Mexico situation. So by any means are you right now let’s say the new the Mexico India tariff which we are there. Are you disadvantaged compared to other countries who are alternative to you? China, Vietnam you mentioned how are their territories relative to India with Mexico.
Akshay Pitti
This is covered under your section 232 tariff. No other country in the world has exemption on this other than UK.
Avnish Tiwari
Okay, so Mexico had just also made those 232 tariffs with all other countries which US already had in the right.
Akshay Pitti
Yes. And I’m not even sure whether Mexico has exempted UK from it. I only know that US has exempted UK from the section 232.
Avnish Tiwari
Got it. So these are like which products of yours are getting covered in this section 232 in Mexico.
Akshay Pitti
So under section 232 with Mexico, any or even us any steel product on the extent of steel component of the cost of product will be taxed at 50%. The value shall be taxed at the reciprocal rate for the country. So everyone has the same disadvantage or advantage when it comes to 232 in terms of regular tariffs. I think India is still at an advantage when compared to China and Vietnam.
Avnish Tiwari
Correct. So at 50 other tariffs, reciprocal tariff, we were at a disadvantage. Now it is 18%. You should be equal or better than rest of the alternative sources. Right?
Avnish Tiwari
Correct. Correct. So okay, so Mexico is no longer a hurdle for you. Discount you gave, you may keep it or roll it back. Will you try to roll it back now?
Akshay Pitti
I wouldn’t want to think or comment on that because we haven’t had a discussion with our customer on that point.
Avnish Tiwari
Okay, got it. Now coming to your export opportunity in general, these two customers, you have a Mexico, US two more in the pipeline. Whatever visibility you have, if you are let’s say largest customer in export which you have in us if that guy is 100 in terms of value you are getting exporting to him, how big these four can be in a one year, two year, three year time frame related to that hundred.
Akshay Pitti
In terms of their business, one of the customers is a direct competitor to our existing customers. So in terms of potential it is huge. As with any relationship, it’s a process. So to scale it in the next two, three years, I would venture to say that it may add about 10 to 15 million of revenue in the next two to three years from export side. Beyond that time frame I think the opportunity is really, really huge. Like I said, they are the direct competitor to our existing customer. And on the other opportunities it’s related to the NEMA Motors, basically the US Energy Efficiency Standard Motors.
So that’s a huge market and that’s a market that we are currently not participating in. So again in terms of potential it is huge. How it progresses over the next couple of years, we need to see how it plays out.
Avnish Tiwari
Got it. So one customer, this 10 to 15 range across four customers you are anticipating?
Akshay Pitti
Yeah, from the entire, the entire export opportunity. 10 to 15 across these four customers. And then there’s a new opportunity which if it clicks could be even larger number than this. Is that what you’re trying to say?
Avnish Tiwari
Yeah, in terms of potential it is even more than this. So we are still trying to develop more customers.
Akshay Pitti
Okay. And this UK FTA which is going to come this year and EU FTA next year, do you anticipate some of the products already supplying can get up lag or was it this? The duties were anyway hindrance to you earlier or they were not necessarily the hindrance. Other parts like getting customer qualifications and all Main reason you were not so big in Europe.
Akshay Pitti
In terms of the FTA coming one by one. The UK FDA I don’t think will have any significant benefit as it is this industry is very small if non existent in UK in terms of Europe. Yes it will. It will bring us a better access to market. And apart from the access, I think the cost advantage of buying from India will be even more today as it is if you see most of the European manufacturers they are trying to de risk the supply chains from China which is how the opportunities started coming to us. And additionally the cost of these goods manufactured in Europe was significantly higher because of their costs of steel.
So in terms of access for Indians origin steel under the FCA will give us a better access and cost in terms of the tariffs. The customers that we currently have in Europe are quite encouraged with this prospect and more and more inquiries are also coming out of the region.
Avnish Tiwari
Got it. And in terms of your guidance you articulated on top line revenues. How would you articulate on EBITDA level for this year or next year? EBITDA margin would remain steady around the current levels plus minus 50bps. That is our expectation because that is largely dependent on product mix which determines the sale realization. So if you see for example the current quarter, the product mix was more oriented towards higher value added assemblies and lamination which typically take, you know, more expensive steel. So your revenue is higher and therefore your margin was slightly lower in terms of gross margins. Right. Kind of a number or no, I.
Akshay Pitti
Would say around 17% as a midpoint.
Avnish Tiwari
17%. And what’s the top line you would range wise look at next year 27 with whatever visibility you have right now.
Avnish Tiwari
For FY27 we are looking at something about 20 to 50 crores of consolidated top line and the margin range around 17% as a midpoint for the full year should be around 17%. And your depreciation charge which is running at current level should it change for any reason or should remain similar going into.
Akshay Pitti
I think. I think for FY27 there should be a slight increase in depreciation by FY27. I think cumulatively about 150 crores will move to fixed asset and therefore that depreciation would come in from full effect from FY28 onwards.
Avnish Tiwari
Okay, so fiscal 27 during the year it will flow into the depreciation that 150 crore capex you’re doing right?
Akshay Pitti
Yes, yes. By FY28 the entire 150 will move to fix the set and will start depreciating it partially in FY27. So I can’t give you an exact number because of the commissioning dates.
Avnish Tiwari
Typically what is the depreciation rate you take like it’s a 10 year, 20 years on this 150crore one can bacon roughly.
Akshay Pitti
We take about 15 years on an average.
Avnish Tiwari
Thank you and wish you very best.
Akshay Pitti
Thank you.
operator
Thank you. Participants who wish to ask a question may press star and 1. The next question is from the line of Ravidna Naik from Sunidi Securities. Please go ahead.
Unidentified Participant
Hello. Thank you for the opportunity. What is the end capacity you are looking at in the three segments? Like you know, sheet metal machine hours and casting for this year year end. So temporary 27 you already mentioned. So what is the end capacity you are looking at? What is the utilization looking at in these three segments?
Akshay Pitti
So for the year end we should look at the capacity as the same as as of December the capacity increase will start from Q1 or maybe even Q2 onwards and get fully implemented by year end 27.
Unidentified Participant
Okay. And what is the utilization we are looking at in terms of capacity utilization?
Akshay Pitti
So for this year we are looking at about 69, 68 and a half to 69,000 as our total sales in lamination including child parts that go into its assembly. And in terms of machine components we are looking at something around 11,000 tons of total sales machine components and castings put together. As far as next year is concerned, we are targeting somewhere around 78,000 tons for lamination and the SMD components that go into it and about 14,000 tons on machine components and castings.
Unidentified Participant
Okay, can you keep it? You know you have mentioned the presentation and sheet metal machine hours and castings. Can you give the utilization in the in these three segments? So in percentage terms.
Akshay Pitti
Yeah, for next one second, 78,000 over 1 lakh. 8,000. So whatever that percentage comes to and in terms of casting it would be 14,000 over 18,600 metric tons. That will be up 72%. And in terms of machine hours, I think it will be closer to 85 to 90%.
Unidentified Participant
Okay, okay. And regarding you mentioned about you just briefly touch upon this cross margin thing because if I see the your presentation we have witnessed in a significant better increase in the our value added products. Like you know, this is a high value assemblies and star frame assembly. All these things are 31, 44%. We have also there is a increase in scrap 50 that the gross margin is a decrease. Y o y so can you please. Explain that
Akshay Pitti
if you see byproducts and scrap, it also includes trade sales related to coins that we do. So we buy these trade large steel coils which are standard sizes, say for example thousand millimeters or 1,200 millimeters. Our utilization of that would be say 700, 800 mm. So what we call as a side street for us which is the off cut is a byproduct. So we have sold roughly about 8 to 10 crores worth of those products which would obviously not have any margin on it. So that is one reason. And the second reason is as you rightly noticed, high value items have shown a significant growth.
Now those also use a more expensive raw material. So our margins on a fixed margin basis, so the gross margins are slightly lower.
Unidentified Participant
Okay, okay, okay.
Akshay Pitti
So if you see on the EBITDA level, we are still, you know, kind of still better off. The gross margins will vary depending on the materials that we are using and also the amount of offcuts that we’ll have to sell.
Unidentified Participant
Okay.
Akshay Pitti
And typically these high valued added SMDs are you know, larger diameter products, so 700, 800 millimeters. And they require us to generate more of these off cut materials which are, you know, two 300 millimeters in diameter size. So kind of correlated with each other.
Unidentified Participant
Okay, okay, okay. Again, again this export front you discussed a lot about in the previous participants discussions about the exports. So if you remember in the past you were actually reducing your exports because of the high working capital. So what is the working capital intensity of your now exports now onwards? But how do you spend this? Is this working capital going ahead or exports?
Akshay Pitti
So we are reducing our intensity on working capital required for exports by doing factories which I mentioned in my speech. So the idea is to sell our receivables and take this off our books. So it will cost us maybe half a percentage in terms of cost since packaging will be more expensive than traditional build discounting. But we see that, you know, having a net effect on our balance sheet which is far better than the cost.
Unidentified Participant
Okay, okay, okay. And what is the date level? Right now
Akshay Pitti
I think the net debt is around 550 crores.
Unidentified Participant
Okay. Okay, thank you. Thank you.
Akshay Pitti
Yeah.
operator
Thank you. The next question is from the line of Pratik Bhandari from Artventures. Please go ahead.
Unidentified Participant
Yeah, hi. So thanks for the opportunity. Can you quantify on the inventory levels. For the quarter and where do you. See them in the coming months? As you mentioned that inventory would be reduced. So if you can quantify.
Akshay Pitti
So as I mentioned earlier, I think the current inventories are about 500 crores and we see that going down to about 300 crores by April.
Unidentified Participant
By April. So within three months.
Akshay Pitti
Yes.
Unidentified Participant
Okay. And also if you can quantify the. Capacity utilization for the machine components during the quarter.
Akshay Pitti
Capacity utilization for the machine components, I think it’s there in the PPT if you see it’s about 74%. 81 second. 84%.
Akshay Pitti
84%.
Unidentified Participant
Yeah. Yeah. Okay, got it. Thank you.
operator
Thank you. The next question is from the line of Abhijit Mitra from Aeneas Alpha Investment Management. Please go ahead.
Abhijit Mitra
Yeah, thanks for taking my question. Two questions on the data center, you know, part. So just to understand the, you know, the lead procurement from the main customer. So suppose you know, whatever sales they would have done in Q3, I mean they would have procured it. I mean how many months ahead?
Akshay Pitti
Just one second. See from what I am being told right now, again I need to just dive a little deeper into this. It takes about 45 days to 60 days for them to make a generator post us supplying our product to them. Now when do they sell it is something we are not aware of. I can only tell you how long it takes for them to convert it into a generator.
Abhijit Mitra
Understood, understood. That’s helpful. Second is, you know, about 45 days
Akshay Pitti
approximately.
Abhijit Mitra
Yeah. Okay. And in if we look at the commentary I think around 260, 270 crores of domestic power gen sales is targeting or you know domestic data center and I’m guessing another fifty hundred crores would be export. So you know out of this 300, 310 crores of you know quarterly volumes that they are doing for power gen for data centers we as of now in this quarter can see 17, 18 crores for PT. So yes, you, you mentioned 90%. But I mean just curious, I mean is this, I mean are we reading it right? As in if they do 300 crores, 70, 80 crores is something that you can sort of capture.
Is that the tam how to look at it?
Akshay Pitti
See from what we are understanding from our customer we should be looking at doing roughly about 150 units a month on an average with US average sale value because there are multiple different products in this category with the average sale value of about 4 and a half to 5 lakh rupees a unit we are looking at an opportunity of what 100, 120 crores in a year on an upper end basis.
Abhijit Mitra
Understood. Understood. Thanks. Thanks. And last question is that you know they would be catering because these are bulky products so they’re very clear they would cater to India and probably Southeast Asia and the region around it. The part, the demand for us and all will be catered by their parents largely. So we are sort of supplying to them as well as in the parent entity as well or we are supplying only to the.
Akshay Pitti
Mostly whatever we supply to the European and US market is through the customer in India itself.
Abhijit Mitra
Okay. Okay. Understood. Understood. Got it. Got it. Great. Thanks for answering and wish you all the best. Thanks.
Akshay Pitti
Thank you.
operator
Thank you ladies and gentlemen. We take that as the last question for the day. And now I hand the conference over to the management for closing comments.
Akshay Pitti
Thank you everyone. I hope we have been able to answer all your queries. In case you have any additional queries after the call, please reach out to our investor relations partners SGA Advisors and we’ll get your answer as soon as possible. Thank you.
operator
On behalf of PT Engineering limited that concludes this conference. Thank you for joining us and you may now disconnect your lines.