Premier Explosives Limited (NSE: PREMEXPLN) Q3 2025 Earnings Call dated Feb. 14, 2025
Corporate Participants:
T V Chowdary — Managing Director
Vijay Kumar — Chief Financial Officer
Analysts:
Akhilesh Gandhi — Analyst
Narendra Khuthia — Analyst
Dipen Vakil — Analyst
Sarjeet Yadav — Analyst
Bharat Mani — Analyst
Niraj Mansingka — Analyst
Abhishek Poddar — Analyst
Ankur Gulati — Analyst
Unidentified Participant
Santanu Chatterjee — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to Premier Explosives Limited Q3 and Nine Months FY25 Earnings Conference Call hosted by Stellar Advisors. 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 this conference call, please signal an operator by pressing star then zero on your Tashtone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr. Akilesh Gandhi from Stellar IR Advisors. Thank you, and over to you, Mr Gandhi.
Akhilesh Gandhi — Analyst
Thank you, Nirav. Good afternoon, everyone. I Akhilesh Gandhi. On behalf of Stellar Investor Relations, welcome you all to Premier Explosives Limited quarter three and Nine-Month FY ’25 earnings conference call. We shall be sharing the key operating and financial highlights for the 3rd-quarter and nine months ended on December 31, 2024. We have with us today the management team of Premier Explosives Limited, Mr. TV Chowdary, he is the Managing Director; and Mr. Vijay Kumar, he is the Chief Financial Officer.
Before we begin, I would like to state that this call may contain some of the forward-looking statements, which are completely based upon the company’s beliefs, opinions and expectations as of today. The statements made in today’s call are not a guarantee of future performance and also involve unforesen risks and uncertainties. The company also undertakes no obligations to update any forward-looking statement to reflect development that occur after the statement is made. Documents relating to the company’s financial performance, including investor presentation, have already been uploaded on the stock exchange and the company’s website.
I now invite Mr to state his opening remarks on the company’s performance for the 3rd-quarter and nine months ended on December 31 December 2024. After that, we’ll open the floor for Q&A session. Thank you, and over to you, sir.
T V Chowdary — Managing Director
Thank you, Mr. Akilesh. Good afternoon, everyone, and thanks for joining the call. I’m very happy to state that quarter three financial year ’25 was our highest-ever quarter with revenue surging from 272% year-on-year, driven by strong growth in our Defense and space Services division. Further, we are happy to share that in December 2024, we have signed a MOU with Global Munition Limited, Group for strategic alliance to develop and produce different munition. Our current outstanding — outstanding order book stands at INR739 crores, forming 2.7x of financial year 2024 revenue. During the quarter, execution of old orders has paved the way for bidding and securing larger high-value orders from the Ministry of Defense, the Indian defense industry and International Defense In quarter two financial year ’25, our orders from various EPSUs and overseas customers are under different stage of execution. In-quarter three FY ’25, the defense orders stand at INR575 crores.
Coming on the recent updates, as you all know, the company will be doing a capex plan as your company has received the letter from the Industrial Promotion and Investment Corporation of Limited. If you call informing the state state-level single window clearance authority through an in-principle approval of setting up defense explosives raw materials and ammunition plants in three phases at District with a total investment of about INR864 crores.
Coming to future outlook, Premier is the only Indian company qualified to manufacture countermeasures and specializes in exporting fully assembled rocket motors. Along with Rocket motors, it also manufactures and exports warheads, mines, and ammunition under the Bharat Initiative. With the Ministry of Defense promoting domestic production and reducing imports, this policy supports growth by driving local manufacturing. Future business received Brahmos production order for INR26.5 crore rupees rocket motor production.
We also received an export orders of INR20 crores for design and development of motor. Bulk production orders for these items are expected in the next financial year and these are going to drive the next financial year revenue. In addition of these medium-caliber ammunition and the mines which are in the early-stage of production are expected to bring in higher contribution. In Q3 FY ’25, we generated a healthy crash profit of INR12.1 crores. By maintaining stable operations and leveraging our efficient cost structure, we aim to further enhance operational efficiency and boost cash-flow. This strengthened cash-flow will reinforce our balance sheet with a positive outlook on the defense and aerospace sectors. We are focused on becoming a key player in both domestic and export markets.
Now I request Mr. Vijay Kumar, our CFO, to share the financial outlook. Thank you, sir, and good afternoon, everyone. The results presentation for the quarter and nine months has been uploaded on the stock exchanges and on the company’s website. I believe you may have gone through the same. The revenue from operations for Q3 FY ’25 stands at INR165.9 crores as compared to INR44.6 crores in Q3 FY ’24, which shows a growth of about 272% year-on-year. Our operating profit for Q3 FY ’25 stands at INR15.4 crores as compared to INR4.9 crores in Q3 FY ’24. The operating margin for the quarter stands at 9.3%. We reported a net profit of IN 9.2 crores compared to 1.7 crores in Q3 FY ’24. Let me take you to the nine months FY ’25 performance, the revenue from nine months FY ’25 stands at INR343.4 crores as compared to INR184.9 crores in corresponding quarter last year, translating to a growth of about 86% year-on-year. Operating profit nine months FY stands at INR48.4 crores as compared to INR43.4 crores in corresponding period last year. The operating margin stood at 14.1% in nine months FY ’25. The net profit in nine months FY ’25 stood at INR24.9 crores compared to INR21.5 crores in nine months FY ’24. Now coming to the order book, the company’s current order book stands at INR739 crores, out of which the defense segment order is major — is majority of about INR575 crores. Segment stands at INR93 crores and service segment and which is operational and maintenance service segment stands at INR71 crores. The order book shows a solid and strong growth towards the previous year. We are very much content that with our continued execution run-rate in the forthcoming quarters, we’ll be continuing with the growth trajectory. With this, we’ll now open the floor for questions and answers.
Questions and Answers:
Operator
Thank you. Thank you very much. We’ll now begin with the question-and-answer session. Anyone who wishes to ask a question may press R&1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press R&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. Participants, you may press start and one to ask a question.
The first question is from the line of Narendra from RoboCapital. Please go-ahead.
Narendra Khuthia
Hi, sir. Thanks for the opportunity. Am I audible?
T V Chowdary
Yes.
Operator
Yes, sir, you are.
Narendra Khuthia
Yeah. So congratulations on a good set of numbers, sir. My first question is regarding our revenue growth, right? So in FY ’25, I believe we had a target of INR400 crore to INR500 crores. So are we on-track for that or do we want to revise it upwards maybe? And also next year, we had plans of next couple of years, we had a plan to grow 15% 20%. So are we on-track for that?
T V Chowdary
So we’ll be in the range of INR400 to INR500. We are not expecting to exceed the INR500 in the current financial year. But yes, definitely next financial year looks brighter and then we’ll be exceeding that.
Narendra Khuthia
So what kind of growth we’d be seeing next year given our strong order book?
T V Chowdary
Yeah, around INR500 to 550.
Narendra Khuthia
Okay, sir. Okay. Thank you so much. And sir, the margins, what kind of margin should we expect?
T V Chowdary
Margins? See, this depends upon the book of the products and some quarters we sell of industrial explosives where some quarters, defense and defense also different margins are there. So generalizing the margin is a little difficult, but we’ll be in the range of between 15% to 20 EBITDA.
Narendra Khuthia
Okay, sir. But our — I believe our defense order book is currently greater than the industrial exposes, right? So that should help the margins?
T V Chowdary
Yeah. No, but in the defense sector, we have multiple products.
Narendra Khuthia
Okay. Okay. Okay. Understood, sir. Thank you, sir. All the best.
Operator
Thank you. Participants, you may press start in one to ask the question. Next question is from the line of Dipen Vakil from PhillipCapital. Please go-ahead.
Dipen Vakil
Hi, good afternoon, sir, and congratulations on a good set of numbers. Just carrying it ahead from the earlier participant, sir, you mentioned that your margin guidance is around 15% to 20%. But can you tell us as to why margins in this quarter has been slightly on the lower side below 10% as to which area of execution is putting pressure on margins?
T V Chowdary
Yeah. You are aware — you are all aware, as we announced the last month we had an accident in our production plan. Of course, as such the accident did not affect much, but the deliveries are expected to get delayed. Keeping that in mind, provisions are made-for the LD. But however, we have taken-up and as a force measure, we have taken-up with the customers and informed and we are hoping that the LD will be waved off. But while making the provisions, we have provided for that, that’s why the margins are lessible.
Dipen Vakil
Got it, sir. And in your opening remarks, you mentioned about a few projects that are there in pipeline. So if possible for you to repeat that and what kind of orders are expected in the entire FY ’26.
T V Chowdary
These are expected to convert to order to a value of around INR200 crores each.
Dipen Vakil
INR200 crores each as in and another design and development auto
T V Chowdary
No, the two export orders. Yeah, these are one export order and one is a domestic Brahmos order. These are — export order is expected to reach a INR200 crore order and Brahmos will keep on growing. It is the whole — I think it will be — in coming three or four years, it will be in the level of that INR200 crores.
Dipen Vakil
Got it, sir. Got it. That’s all from my side and all the best. Thank you so much, sir.
Operator
Thank you. Participants, you may press start in one to ask a question. Next question is from the line of Sarjeet Yadav from Mount Intra Finance. Please go ahead.
Sarjeet Yadav
Good afternoon, sir, and congratulations for a good set of numbers. Continuing from the previous question, so in addition to the — these orders, what is the visibility in terms of shafts and flares or mines or anything we’re expecting during the next year?
T V Chowdary
This — this will continue because these are consumables which are consumed as wastage and other things. So we — it may not be such a large, huge order what we received the last financial year so that as an emergency procurement order. But it will keep on coming, it will be repeated in terms of once in three years, we can expect this kind of quantity.
Sarjeet Yadav
Okay, sir. And my second question is around the execution. Last con-call you had said that we are expecting the shafts and is the majority of our order book to be completed by July this financial year. So do we continue with that target or is there to be further delay on that?
T V Chowdary
It may get a little delayed further because like I mentioned about the accident, the accident took place in the — one of the buildings of this shaft and production. So this production is going to be delayed.
Sarjeet Yadav
Okay. And regarding the Odisha plant capex, in which quarter are we expecting that to be incurred? Any visibility on that?
T V Chowdary
So for first quarter of next financial year, we are expecting the procurement of land. We may have to pay for the land in the first-quarter. But the total capex will be spread-out into three phases. Out of that first phase will be in two years.
Sarjeet Yadav
Okay. Thank you, sir. Thank you very much. That’s all from my side.
Operator
Thank you. Participants, you may pressed to ask a question. Next question is from the line of Bharthi Mani from MoneyBee Investment Advisors. Please go-ahead.
Bharat Mani
Hello. Yeah, am I audible?
T V Chowdary
Yes.
Bharat Mani
Yeah. Thanks for the opportunity. So my first question was on the shafts and flares order. So how much of it was booked in this quarter? And I also want to know that you just said that there has been a delay from July ’25. So till — by when do you expect this order to be completed?
T V Chowdary
We have almost — we have almost completed half of the order quantity. The balance half will be completed in the next financial year.
Bharat Mani
By — we expect the first-half to complete the order or it will go to the second-half?
T V Chowdary
It will go to second-half. We are going — we are expecting it to go up the end of December.
Bharat Mani
Okay. Okay. And my next question was on because of the accident. So exactly how much is the amount?
T V Chowdary
It is not the accident, it is the delays of production due to accident.
Bharat Mani
Okay. So exactly how much is the
T V Chowdary
Rate of 15% you have provided the
Bharat Mani
15% of the turnover you’re seeing.
T V Chowdary
No, 15% of that are there, not the whole turnover.
Bharat Mani
Okay. So can you just give me an exact number? How much is it?
T V Chowdary
Right now, I don’t have — let me the numbers.
Bharat Mani
Okay, okay. So my the next question was on the finance cost. So I can see September quarter, the finance cost was around INR2.6 crores, but it went up to INR4 crores by this quarter. So what is the reason for this increase?
Vijay Kumar
The main thing is turnover has gone up and working capital utilization was on the highest rate. And also we had term-loan from SBM. So that interest is also captured in this quarter. That’s one exactly.
Bharat Mani
Okay, okay. And you just said the Orissa plant for the capex that you’re going to do in Orissa is around INR864 crores. So how are you planning to fund that funding?
T V Chowdary
We expect to fund it with internal accruals and also QIP. That’s what was announced, I think two months back after the Board approval.
Bharat Mani
So okay, okay. So it will be like a rate or how much would be internal accruals?
T V Chowdary
In addition to Orissa plant, we also have other capex plans also in the existing plant from the orders which you see and all those which are flowing. So altogether, we have a plan of — it’s something between INR200 crores to INR250 crores.
Bharat Mani
Okay. Okay. Yeah, that’s it from my side. Thank you.
Operator
Thank you. The next question is from the line of Niraj Mansingka from White Pine Investments. Please go-ahead.
Niraj Mansingka
Sir, I wanted to know on the warehead side, you are doing some capex.
Operator
Niraj, your audio is not loud enough. Can you speak little louder?
Niraj Mansingka
And you are doing some capex. Can you give us the status of that?
T V Chowdary
No, for specific for all it, we already have the facilities. As of date, we have no plan of any capex in warheads.
Niraj Mansingka
Okay. Okay. So are there any capacity addition or in warhead that’s planned or that you’re working for
T V Chowdary
Capacity is we have capacity enhancement in the raw-material for it, that is RDX and HMX plant, we have taken-up the enhancement of capacity and that is going on.
Niraj Mansingka
Yeah, on that only I was talking about. What is the status of that and when will it complete?
T V Chowdary
We are targeting the June-July month for completion of this and coming into production.
Niraj Mansingka
Okay. And sir, what would it give revenues to because this is a product which has a lot of shortage globally.
T V Chowdary
So if you go to raw materials globally, all raw materials are in short supply only. Whether it is TNT, RBX, HMX, are there products, compounds all are in short supply.
Niraj Mansingka
Okay. But sir, what is the potential revenue that we get from this RDX and plant that you are putting up?
T V Chowdary
With the present demand, international market demand and our own requirements, we are expecting a good contribution from this.
Niraj Mansingka
So any numbers you can give on that range be okay?
Vijay Kumar
About INR100 crores to INR100 crores. It’s about INR100 crore to INR100 crores of.
Niraj Mansingka
So is it right to say that in year ending March 27 March or the quarter-four of March ’26.
Vijay Kumar
It should be captured.
Niraj Mansingka
Okay. But is it the right assumption that by March ’26, your run-rate on RDX and HMX will go to a yearly run-rate of INR100 crore 150 crores range per year. Is the right assumption
Vijay Kumar
Yeah, around that, yeah. Yeah.
Niraj Mansingka
Okay. And sir, can you share something about the ammunitions and in any specific possibility of any large order coming to the…
T V Chowdary
Ammunition side? Grenade Emulation, like I’ve mentioned in the last previous con-call, we have qualified — the product is qualified. Now we are waiting for the RFPs to come and then we will be participating in RFPs from the MOD.
Niraj Mansingka
Yeah, how large can those — and how many companies are competitors will be there qualified in this product?
T V Chowdary
So you know MIL is the old standard company, which is already doing and DRDO has transferred the technologies to another two companies that is and HPL. So these are things other than that, but and this is a wide range of products. So different products are being produced by different companies. What you asked about the granite, only these three, that is MIL and premier.
Niraj Mansingka
And MI premier and the third one is?
T V Chowdary
HBL Hyderabad Batteries Limited. Who have taken the technology transfer from DRPU.
Niraj Mansingka
Okay. Got it, sir. I’ll come back in the queue. Few questions I also had. Thank you very much.
T V Chowdary
Thank you.
Operator
Thank you. Participants remember a star and one to ask question. Next question is from the line of Abhishek Poddar from HDFC Mutual Fund. Please go ahead.
Abhishek Poddar
Hi, thanks for taking my question, sir. Sir, regarding these margins being lower in this quarter, you mentioned that you have taken the delayed delivery LD for the entire order. So then when you are executing the order for the next three, four quarters, then the margin should normalize, that’s what we should assume?
Vijay Kumar
Balance of the underwriting, there also we need to provide unless we get from the government.
T V Chowdary
For these items, yes, it is expected that let’s say, we’ll be producing other products also. It will not be like I was telling, margins depend on the bouquet of products we supply and sell. So it may not remain the same. The supplies will be changing.
Abhishek Poddar
Right. So are you kind of indicating that…
Vijay Kumar
It will be changing from quarter-to-quarter, it will not be. Right.
Abhishek Poddar
So the 9% is like on the lower side and you would expect an improvement going ahead
Vijay Kumar
Yeah.
Abhishek Poddar
Provisioning will be lower in the next few quarters.
T V Chowdary
Right. 9% also because of the provisions made, but it is not yet spent. We are still in the queue and then we have requested the customer to consider as a post-measure class.
Abhishek Poddar
Understood. And sir, what is the probability you think that customer will refund that amount to you?
T V Chowdary
In earlier cases, yes, we got the refund of that. So we are hoping that we have a much stronger case this time.
Abhishek Poddar
Okay, understood. Sir, second is regarding this RDX and HMX. So you indicated that you will reach INR30 cro crore kind of a run-rate in revenues by 4th-quarter ’26. What is it now? And would — should we assume that in ’27 you could reach that INR150 crore crore kind of revenue from HMX and RDX?
T V Chowdary
No, I think CFO told about INR100 crore to INR150 crores, not INR30 crores.
Vijay Kumar
Last quarter this will happen next financial year. Yeah, 26 ’27, yes, there is a probability of going for 100 crore, IN 100 crore to INR150 crores if you get into the full-scale production.
Abhishek Poddar
Right. And what’s that number in ’25, sir?
Vijay Kumar
’25 and start and we have an aminance this one.
T V Chowdary
Very present our smaller plant is working and mostly it is going for the self-consumption underground products like warheads and other things, you are using it.
Abhishek Poddar
Right. Yeah. And so you would start booking this orders from the next couple of quarters. How are the inquiries and all if you can give us some understanding there, sir.
T V Chowdary
Yeah, we have the present international demand, we are getting a lot of queries for that. So it is only the question of commissioning the plant and supplying.
Abhishek Poddar
Understood. And sir, this ammunition for TMM you had indicated in the last call that you have already developed it. And given the global shortage, can you talk about the inquiries there and what customer engagements you are having there?
T V Chowdary
Right now, we are not in global market for these products. The MOD and also MHA, whom the paramilitary forces, they are all looking for these products, but there is a process of ordering and all those tendering and RFP that process going on.
Abhishek Poddar
Okay. So the first preference would be to supply to domestic market and then look at the global market.
T V Chowdary
Yeah, yeah.
Abhishek Poddar
And should we expect this to start, you know, generating revenues from ’26 or should it be later?
Vijay Kumar
Yes, see the MOD RFPs, their time scale is not predictable. We do not know. Sometimes on RFP to mature it takes more than a year. So it’s only a wild guess.
Abhishek Poddar
Okay, so because some understanding says that in Europe there is a huge shortage and would you be keen to let that inquiries flow-in and kind of engage with them all?
Vijay Kumar
Yeah. Any query coming, we are participating. We are not letting anything go.
Abhishek Poddar
Okay. Okay. And sir, just the last question. The next year revenue that you talked about INR500 crores INR550 crores. If you could give us some understanding of the major products that you will be part of that revenue pool?
T V Chowdary
We still have a lot of exports to be made, export orders we are expecting from that. And also this like half of the shafts and flares which has to be executed, that is also going-in the next financial year and mines. And then new addition of rockets are added to our production line. In addition to that, the — we are expecting a bigger order from India. Right now, we are not executing any order from Coal India, the bulk explosives. We are exporting participation because the two-year period is completed, no new RFP is going to come from Coal India. So that area also we are expecting a contribution to our revenue.
Abhishek Poddar
Okay. Okay. Thank you, sir. All the best.
Vijay Kumar
Thank you.
Operator
Thank you very much. Next question is from the line of Ankur Gulati from Genuity Capital. Please go-ahead. Ankur, can you unmute your line and proceed with your question?
Ankur Gulati
Is it possible to qualify the provisions you have taken for this LD in this quarter?
T V Chowdary
Not clear. Can you please repeat?
Operator
Or can you start once again and little louder, please?
Ankur Gulati
Is it possible to quantify the provisions you have taken this quarter, the LD provisions which you were referring to
T V Chowdary
It’s already mentioned — about INR25 crores, about INR25 crores.
Ankur Gulati
Okay, thanks.
Operator
Ankur, do you have any follow-up question? Thank you. Participants, you may press star and one to ask the question. Next question is from the line of Diraj from RRR Investments. Please go-ahead, sir.
Unidentified Participant
Hello. Yeah, thanks for letting me opportunity. My question would be that out-of-the 460 CR order for and that is right now that is being delayed. You are saying that 13% of that order was completed in this quarter, so around 72C
T V Chowdary
I couldn’t get you.
Operator
One moment. Can you speak to the handset, please?
Unidentified Participant
Yeah. Okay. So my question is that out-of-the 480 cr order of charter players, you mentioned that 15% of the order was completed. So can we assume it’s around 70%,,
T V Chowdary
50%, you said, 50% in this financial year we will be completing about 50% in next financial year-by 50%.
Unidentified Participant
Yes. My question was that the total order was of 30cr and four ATCR was remaining at the starting of this quarter. So from the remaining 4 ATCR, how much of order was completed in this quarter?
T V Chowdary
That’s what we told of 50% we have completed of the total order. This — you’re asking about this quarter?
Unidentified Participant
Yes, for this quarter only out of 480cr, 240cr would be way too much, right?
T V Chowdary
I — this quarter means the current quarter you mean.
Unidentified Participant
Yes, Q3.
T V Chowdary
The current quarter, the quantity will be less because I told you the accident happened in the one of the buildings of shaft and flare production.
Unidentified Participant
You sir, do you have a number that what is the remaining order book right now?
Vijay Kumar
Around 200. It will be around INR200 crores.
Unidentified Participant
Yeah. Okay. And my next question was that the margins are purely due to the provisions that you have created?
Vijay Kumar
Yes.
Unidentified Participant
And so if these provisions are going to be reversed going-forward, the margins would show abnormally high in next few quarters, right?
Vijay Kumar
Maybe if we get it from the government, yeah.
Unidentified Participant
Okay. And my next question was that today there was a news about that Philippines is going to order for around $200 million. So out of that in the, you are offering the booster gains, right?
T V Chowdary
Yeah, boosters and sustainers wins
Unidentified Participant
Okay so if that order comes in the boosters order will be given to the premier exclusive only or is there a competitor that will be competing with you?
T V Chowdary
Yeah. Of course they will take quotes, they will invoid quotes from all players in it.
Unidentified Participant
Okay. And other than this product, any other product that you are — you can supply to them or this is going to be the only thing.
T V Chowdary
Other products means.
Unidentified Participant
No, I mean for the Akash missile, you are only providing the grains right now. So any other…
T V Chowdary
Providers we also provide the initiatives, initiating explosives.
Unidentified Participant
Yes, out-of-the total 100% of the revenue, how much of the value addition is being done from your side? Can I get a percentage on
T V Chowdary
See our part of contribution around it will be 10% to 15% of the total value.
Unidentified Participant
Okay. And how sure are you that if India gets the order from them, then this the order for these initiatives and greens will be given to your company?
T V Chowdary
This question has to be asked to BDL. How sure they are of getting it? We can only get a supply when we get it from BDL.
Unidentified Participant
Okay. Sir, what is the margin for these products for the grains and initiators?
T V Chowdary
Margins keep changing. Initias will have a different margin and the boost of gain separate margin will be separate margin. So we can only talk about the overall total year how it will be based on the book. Each item, I don’t think that it’s something for me to disclose the commercial information.
Unidentified Participant
Okay. Thank you so much for answering the questions.
Operator
Thank you. Participants, you may press star and one to ask a question. Next question is from the line of Shantanu Chatterjee from Mount Intra Finance. Please go ahead.
Santanu Chatterjee
Thank you for this opportunity, sir. My question is on your chaps and players, which you are actually executing under a emergency procurement policy. But my question is how much follow-on orders size you are envisaging, sir, in this segment in caps and clear in the coming year.
T V Chowdary
We have participated in the things. Like I mentioned, it will not be to the — in the same volume future requirement. That was emergency procurement order, that’s why to speak. Now, now that like I said, one-third of that may be the quantity year-on-year requirement.
Santanu Chatterjee
Okay, one-third will be the size of the repeated order.
T V Chowdary
Yeah, right.
Santanu Chatterjee
That you are envisaging right now. Okay. And my second question is on the order book. You were envisaged. Sir, from the last couple of con-calls, you have got your guidance about INR800 crore to INR1,000 crore order book size for the next three to four years that you are envisaging.
T V Chowdary
Yeah.
Santanu Chatterjee
But — but when the entire defense sector sir is experiencing or expecting huge orders flow, then why we are actually sticking with this kind of conservative target of INR800 crore to INR1,000 crore for next three to four years? Is it because of our limitation on execution front or there is some kind of limitation on our product TAM size? Please clarify, sir for our better understanding.
T V Chowdary
Like I mentioned earlier, we are in the niche area of energetic materials and analystic material components only, not the capital platforms and all those what you said, the figures and then the defense budget includes so many things in it. There are tanks, artillery guns, aircrafts and submarine ships and all those. We provide the energy components that is similarly that when you come to missiles, our contribution is 10% plus or minus it can be anything between 5% to 15%. So we go by that rather than going by the total budget and all those. I hope I have answered your question.
Santanu Chatterjee
Okay. Okay, sir. Thanks a lot for answering your question.
Operator
Thank you. Participants, you may press start in one to ask a question. Next follow-up question is from the line of Niraj Mansingka from White Pine Investments. Please go-ahead.
Niraj Mansingka
Sir, just a clarification. See, the total order of shares and flares that you have received was INR630 crores and you were saying that you will complete 50% of the same in next financial year. So then the approximate INR310 crores INR315 crores would be the remaining — that will be executed by you in FY ’26. Is it the right number that I can assess?
Vijay Kumar
Okay. Can I repeat it?
Niraj Mansingka
Of the INR630 crores, INR315 crores would be — would be reported in FY ’24.
T V Chowdary
So I think you have added up old order Salsa and come to that trigger. We have already executed those orders, right?
Niraj Mansingka
Okay. So the new orders, which is INR550 crores of that 50% will be executed in next year actually. Okay. And how much is the provision you have booked till-date, total amount that can — will be claimed by you in future, like last quarter was INR25 crores and total how would be how much
T V Chowdary
As Mr. Vijay Kumar mentioned earlier, as replied to earlier of course, around INR25 crores.
Niraj Mansingka
That is for the quarter.
T V Chowdary
They have good. The other thing is in this quarter all you know.
Niraj Mansingka
I thought last quarter also was acquisition of delay.
Vijay Kumar
It will be around I’ll put today, it will be around 35.
Niraj Mansingka
35 crores. And generally what is the procedure like you claim right now is after the order completion, you will claim the moment.
T V Chowdary
Yes, after the order completion.
Niraj Mansingka
So which means that we come to know about these claims of your — which would be between INR30 — between say INR50 crores.
T V Chowdary
Before order completion right now, we ask for the delivery period extension. Okay. And yeah. And once we deliver, we request further or waiver of LD. That’s how it works.
Niraj Mansingka
So the earliest we can know is around the Q4 FY ’26 about this number.
T V Chowdary
Correct.
Niraj Mansingka
And sir,, what is your experience in the delays or the time that how fast decision made in terms of this amount to be like last experience?
Vijay Kumar
How fast is
Niraj Mansingka
When you claim for the amount, how earliest can the decision be made?
T V Chowdary
It’s difficult to answer this question.
Niraj Mansingka
Okay.
Vijay Kumar
So many extent, but the government has to process there to agree and all these things.
T V Chowdary
Right, right now we have made a provision. I think that is the one we should keep in mind rather than we are going to get back as alumnium.
Niraj Mansingka
Thank you.
Vijay Kumar
Thank you.
Operator
Thank you. A reminder to all the participants, you may press and one to ask a question. As there are no further questions, I would now like to hand the conference over to Mr. TV Chowdary for closing comments.
T V Chowdary
Yeah. Thank you. Thank you, Aklesh. Thank you everybody for all your valuable time and showing interest in the company — company’s websites and all. I hope I have answered — tried to answer at least all the queries. Thank you and good day.
Operator
Thank you very much. On behalf of Premier Exclosives, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.