Quality Power Electrical Equipments Ltd (NSE: QPOWER) Q3 2025 Earnings Call dated Mar. 18, 2025
Corporate Participants:
Bharanidharan Pandyan — Joint Managing Director
Rajesh Jayaraman — Chief Financial Officer
Sarika Jadhav — Senior Vice President of Finance
Analysts:
Nidhi — Analyst
Hitesh — Analyst
Nemish Sundar — Analyst
Naman Parmar — Analyst
Surabhi Saraogi — Analyst
Sagar Tanna — Analyst
Mahesh Bendre — Analyst
Bhavik Shah — Analyst
Majid — Analyst
Yaqub Khan — Analyst
Sarvam — Analyst
Abhi Mainwala — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Quality Power Electrical Equipments Limited QT FR25 earnings conference call hosted by ICICI Securities Limited. As a reminder, all participant line will be in listen only mode and there will be an opportunity for you to ask question after the presentation concludes. Should you need assistance during the conference call please signal an operator by pressing 0 on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Nidhi from ICICI Securities Ltd. Thank you and over to you Ma’am.
Nidhi — Analyst
Welcome everyone to the Q3FY25 conference call of Quality Power Electrical Equipment on the behalf of ICICI Security please note that this is their first call posted a successful listing last month. We have with us Mr. Bharanindran Pandyan, Joint Managing Director Mr. Mahesh Hold, Town Director Mr. Salish Kumar Mishra, Independent Director Mr. Rajesh Jayaram, CFO Mrs. Sarikar Zadav, Senior VP Finance Mr. Sachin Shetty, VP Finance first we will have introductory comments from the management post which we will have the Q and A session. Thank you and over to you sir. Ma’am.
Bharanidharan Pandyan — Joint Managing Director
Good afternoon everyone. My name is Barvidharan Pandyan and I’m the Managing Director here at Quality Power. I thank all of you who have joined our first maiden investor call. At the outset I thank our key investors, anchors and shareholders who have trusted and stood by us during the turbulent times in the Upper ipo. We recognize and acknowledge this trust and are committed to delivering on our objectives with precision and efficiency. This listing marks a new phase for Quality Power where we focus on leveraging our strengths to drive growth, technological advancement, industry leadership and stakeholder growth. At this interaction post listing I would like to take a small moment to provide a brief overview of our company for the new joine as Quality Power we are into two businesses.
One is high voltage electrical power equipment. Another is electric power Quality Solutions. Our products and solutions play a crucial role in the efficient transmission and distribution of electricity, renewable energy, grid interconnection and energy transition where we focus on lot more complexity of electrical distribution and generation. We focus on our solutions on enhancing grid stability and reliability. Our high voltage power products include reactors and line traps where we make up to 765 pvs for a variety of. Applications instrument transformers up to 500kV and we make small power special purpose transformers for various applications including data center, traction and power electronics. Our power quality solutions include harmonic filter, capacitor banks, SVC and Satcom which are primarily delivered from our facility out of Turkey that is NDOCs.
With multiple manufacturing facilities in India and Turkey, we are strategically positioned to serve the growing demand for high quality power equipment across various geographies and we have demonstrated the same over the past two decades in over 100 countries. We also have a very strong in house R and D capability which helps us innovate and develop product and solutions for the emerging applications in power electronics, smart grid and energy transition technology. Among the other development post IPO we have as promised acquired 51% of Nehru Electrical and Mechanical Engineers in Biwadi that is an NCR for about 120 crores. We have now also joined our operations together and we have invited the new family into our fold. Additionally, we have also for the growth that we foresee in our businesses, we have taken decisive steps to expand our manufacturing capabilities based on heavy demand on our call product line.
In the recent board meeting the board has approved investments at a 10 acre facility that has already been acquired next to us at E5 and E6 in Sanghi and also enhanced capacity addition in Cochin plant of ours. At this current moment in the Sanghi business of power products, we have about 180 crores of order already booked giving more than a year of visibility and about 450 crores of order which have been almost negotiated and are awaiting POs at different points of time. To support our further growth strategy and to conserve free cash flow on the books whatever we have, the board has also approved 125 crore soft loan from the promoter family at a repo 0.5 that is approximately 7% with a 15 year tenure that can be extended and a 2 year moratorium that also can be extended offering a flexible penalty free repayment which will help us ensure that all the free cash and profits being delivered by the company can go into growth capital as we expand in the near future due to the demand supply mismatch in high voltage product industries.
Additionally, because of the options that have been given to the board, the board has decided to create A M and a committee with three independent directors and two executive directors under my chairmanship to evaluate and what we said the different proposals in front of the board enhancing strategic alignment with our long term vision. Among the proposals, the board has also looked into the consideration that we have had with Statcoin Energia, a company based in Noida with about 300 people and 170 crore revenue last year. E2 Power electronic products similar to. To us and we would be taking post negotiations and due diligence majority stake in the company apart from it to evaluate other proposals. The committee will be sitting in the near future to look at and finalize other options as and when available. Also the market, especially in India where now we will see a lot more infrastructure. Infrastructure coming up is what we say is driven by very heavy investments in transmission and distribution.
So is in Europe and US. Even recently as of day four yesterday UK has made a 59,000 crore order commitment on HVDC and its product lines, again creating similar value chain across the globe. Quality Power we have qualified for most of the projects across the globe and have the capacity and technological wherewithal to be able to address most of these solutions given a capacity and support from the stakeholders including supplier partners, customers and shareholders. As we embark on this new chapter as a public listed company, our focus remains on capitalizing on growth opportunities, enhancing innovation and solidifying our leadership in this industry. We remain steadfast in our focus on scaling operations, enhancing efficiencies and driving long term value creation for all stakeholders. I would like to again thank our investors for their trust and belief in our vision. We are committed to delivering sustainable growth over the long term and look forward to ongoing engagement with you as we execute the strategy. With this I now hand over the call to our CFO Mr. Rajesh who will take you through the financial and operation highlights. Thank you over to Mr. Rajesh.
Rajesh Jayaraman — Chief Financial Officer
Good afternoon everyone. Thank you. Bani Aram I am pleased to take you through the financials and operational performance of Quality Power Electric Equipment Limited for Q3 and 9 month financial 2025 for Q3 financials 2025 our revenue from operations was recorded at rupees 726 million driven by strong execution of order book, strong demand and improved product mix that enhanced realization. However, the revenues were partially impacted by product execution cycles. EBITDA for the quarter was 174 million reflecting a 63.2% year on year on year increase with margins expanding to a record 24%. This growth was supported by better capacity utilization, operational efficiencies and shift towards higher margin products. Our PAT grew by 44.6% year on year to rupees 196 million with a PAT margin of 24.5%.
The increase in profitability Profitability was driven by robust revenue growth, margin expansion and disciplined cost management. For a nine month period ending December 30th. Because 2024 with annual revenue of rupees to 2283 million EBITDA of rupees 490.5 million reflecting a 174.4% year on year increase with margins expanding to a record 21.5% and PAT of rupees 696.5 million grew by 83.5 year on year with PAT margin of 26.5. Showcasing our strong business fundamental discipline, execution. Our order backlog remains strong at rupees 5170 million. With the immediate order pipeline of rupees 7000 million, the strong order inflow undergoes sustained demand from the power transmission and distribution sectors. For December 2004, we have further strengthened of distress fundamentals through strategic investments and acquisitions.
As highlighted with Ramitan, we continue to focus on prudent capital allocations, cost optimization and enhance our operational efficiency. Our balance sheet remains well capitalized, supported by the funds raised through the IPO and a disciplined approach to financial management. Looking ahead, we are confident in sustaining growth by leveraging technological advancements, driving operational excellence and executing strategic expansion initiatives. Our commitment to financial discipline and value creation remains unwavering and we look forward to further strengthening our market position. With that, I conclude my remarks and open the floor for questions. Moderator, please proceed with the question answer session. Thank you.
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 and 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. The first question is from the line of Hitesh from SBI General. Please go ahead.
Hitesh
Thanks for the opportunity. Good afternoon, gentlemen. Sir, my question moreover, pertains to the nature of the revenue for this quarter. We have seen a kind of, you know, 50% kind of a dip in the revenue. I believe this is a significant change in the product mix because in a similar time, we have seen expansion in the gross margin also. So just wanted to understand the nature of the products which we have sold during the quarter and how this trend will be going forward. This is. The first question and on the second. Second question, sir, on the margin front though, we have seen a significant growth in the margin. I just want to understand on thought process from you especially that is this a peak margin, what we have clogged or the margin expansion is still possible. From here on, I have more questions to ask. We start from the first two questions.
Bharanidharan Pandyan
Good afternoon, sir. So this is Barney here. I will answer your first question. The margin on margin. Sorry. The quarter on quarter numbers are. I believe it’s a new discipline that we will continue to inculcate and improve upon as we go ahead. As a young company, this is something that we did not really focus upon earlier. However, highlighting what has happened is last year a lot of jobs of Q2 and Q3, Q4 had gone into Q3. That is why if you look at the last Q4 of last year, you would see a revenue very small revenue that has seen in Q4. So whereas this Q4, you know, looking at the way it is and our numbers, you would see a significant jump.
It is nothing but because our discipline was cute, quarter to quarter was not there earlier. That is 0.1.2. Is that what we say? Some of the jobs, what we say in Turkey, which are typically a high value order have not really what we have been delivered on time because of customer requirements on civil and other issues. We believe it will get located in what we delivered in the next few quarters. However, at the end of the year we only see growth. We would see a lot more difference in the Q4, that is on the sales and number side. With regards to the margin, I believe the demand and supply is what is driving margins in most of the high voltage product segments, including my peers in the lifted space. I believe for the current moment, or I would say in the next one to three years, we do not see any drastic difference unless there is a dollar or a metal disruption across the industry or a geopolitical risk.
Hitesh
So sir, is it the right understanding that our margin is likely to be in the in this range only that 24% what what we have clogged it.
Bharanidharan Pandyan
I would believe that we should be around 20%, sir. I believe it is sustainable for a medium term, short to medium term.
Hitesh
Okay. And sir, on the other hand, on the the next question is about the strategic equations. You are planning of strategica. So what is the product line of the business and what kind of a revenue we have seen for the. That company how it has grown over the next two to three years and how. What kind of synergies are we going to, you know, see from that acquisitions and. And how. How that, you know, how the. How that company is going to help, you know, power quality power in terms of, you know, our future growth prospect.
Bharanidharan Pandyan
So I would like to split the question into two options. Thapprovede first option, sorry, the two segments. The first segment has been about Nehru. Nehru is something that we have already declared during the DRHP stages and RHP stages. Nehru is into high voltage instrument transformers up to 500kV. They have a factory in Bwadi with about 500 plus employees. This is a complementary product to our high voltage what we say high voltage reactors and mind traps where we see a lot more what we say combined offerings to our global customers. We believe that what we say we will be able to sell their products and solutions in the global markets where we have a very strong presence. Also their engineers who are working on other high voltage products and segments would be used to us in our combined R and D. They have about five high voltage Teslas where they are also having almost close to 100 engineers working on technology. That is on Nehru where we share common customers across the globe.
With regards to statcom, they are similar to our businesses in power electronics with ndocs. Their primary products are battery energy storage where they have been delivering what we say between 250 to 500 kilowatt energy storage solutions for commercial and industrial customers. They are also supplying battery charges for high voltage substations and defense applications which is a bouquet of other high voltage products to our customers, especially in the EPC and what we say high voltage customer base. They are also into rectifier power electronics including green hydrogen. They have the first mover advantage having supplied NTTC and other defense applications. The first green hydrogen projects in the country. Having already delivered high power rectifiers and standing chance to increase upon their product offerings. They are also having inverters and converters for renewable and defense applications. Especially with regards to the new power electronics being inculcated in the renewable space and on the power quality space again which is significant to us. They are making Satcoms and small power active filters in the low voltage retail and commercial space. So we believe that for all our businesses they are in the similar ecosystem and hence that is why the board has approved that.
Hitesh
And sir, how are going to fund that acquisition?
Bharanidharan Pandyan
The GCP when we had what we say whenanywhere we raise the money for the IPO already allowed us close to 60 crores for another unidentified acquisition. We are using the money from the. IPO and not from anywhere else.
Hitesh
So you said 170 crore of equation. What is the size of the equation, sir? The amount wise
Bharanidharan Pandyan
That is yet not disclosed, sir. It will be told when the entire transaction post but will be within the range of the money that is being raised. Okay. And I, I believe that has happened at this moment is it would be primary only transaction.
Operator
Sorry to interrupt, sir, I would request you to rejoin the queue for your follow up question. Thank you. The next question is from the line of Nimish Sundar from Elara Capital. Please go ahead.
Nemish Sundar
Yeah, hi. Thank you for the opportunity, sir, and congratulations on a good set of numbers. So I just wanted to understand on the statcon acquisition, so what could be the potential margins for the company? Like would it be in line with what our current sustainable margins you’ve guided of 20%. Would it be in line with that or slightly in variation to that?
Bharanidharan Pandyan
So most of the companies that we buy, we believe in the product and the business line. It is up to our capability that we are able to increase our margins over a period of time. Both me and Stratcon have much lower margins than us. So at a combined margin is Nehru looking lower. But as standalone businesses we will be doing fine. But we have drastically improved the mehru the margins. If you look at last year their numbers were on a sale of about give and take, 213 crores. They had done EBIT of about 13 plus crores and in nine months they have done almost 180 crores with an EBIT of about 18 crores. So you could see that once you go in, we normally try to improvise. And this is about nine months of our relationship with them. The same thing you can expect with other companies that we enter. Because when you go into very high margin businesses which are already doing very, very well normally you will have to pay a lot more premium. And we believe in our ability to be able to improve margins.
Nemish Sundar
Okay. And sir, when could we see the acquisitions materialized and near completion?
Bharanidharan Pandyan
I believe we have been given a three month mandate. We should be able to wrap it subject to our due diligence. I believe ideally in the next 45 days is what we are targeting internally, that’s at the board, that’s given as a three month mandate.
Nemish Sundar
Okay. And so secondly, your business mix now is mostly concentrated towards the export market. But now with the MERU acquisition and this new acquisition on the horizon, so how could we see the mix change over the next one to two years?
Bharanidharan Pandyan
I believe even on our own product line, you could see the new HODCs that are being announced in this country, the Statcoms that are being announced. These are all mega orders that are coming in. You can see the amount of new renewable energy projects that are coming in. I believe for the immediate few quarters. The Indian. What we say the Indian revenue would increase also a lot of manufacturing revenue would increase which would also stabilize our quarter on quarter numbers. However, as we again then push for these products in the global markets we would again try to flow back to at least 60, 40, 60 being edge forward.
Nemish Sundar
Okay, and so just one, one last thing on the capex that you have said so on thdeclarede it is a pretty large capex. So what how would you see the potential revenue from this on the peak front and and in the near term how could you see the revenue from this KPI?
Bharanidharan Pandyan
So as we declared we have more than about 182 crores of order book as of now and about 450 crore of order which are close to completion or negotiation. So with say a margin expected margin of around 20% that was about 128 + crores of this. The cash and cash equivalent on our company based on the new profit that we are generating is in excess of 60, 65 crores. So I believe that we should be able to deliver the capex with our own what we say reserves and the money that will be delivering out of profits in the next one or two years. However, we would like to retain our profits as a company for further growth initiatives in the inorganic phase. That is why the promoter have decided to give a very very soft loan. Basically the depreciation and the interest would be more or less same. So at any point of time if we are sitting on a free cash flow and we do not have an acquisition around the quarter or the year the board subject to both clearance, we may even prepay the loan. At this moment we did not want to use the reserves to fund the capex. That’s the only reason why we wanted to use it for growth capital.
Nemish Sundar
Okay, thank you so much sir. I’ll get back in the queue.
Operator
Thank you. The next question is from the line of Naman Parmar from Navasia Investments. Please go ahead.
Naman Parmar
Yeah, good afternoon Pan sir. So firstly I just wanted to know how much the oil product would be contributing in your total revenue.
Bharanidharan Pandyan
I believe the way the things are going on it will be at this moment around close to 50%. But I believe going ahead in the future it will be far higher than 50.
Naman Parmar
Okay. And secondly in the current order book the 517 crore so how much it would be contributing from different economy? Any major economy would be contributing major to this order book. So can you use the bifurcation for that?
Bharanidharan Pandyan
We do not have technical bifurcation at this moment. However I would say to fairly spread between Europe, Australia, Middle east and India. There is not much of a presence in the US at this moment. We have some few orders, but. I would say it’s less than 5 crores from the U.S. okay. And on the main.
Naman Parmar
Okay. On India also and on the MERU electrical side. So current quarter that revenue that has been shown on the presentation. So there is the some revenue related to the fabrication that that is shown that should be given. So how much would be that revenue in the current quarter?
Bharanidharan Pandyan
Because we are not able to consolidate the number because we only acquired them on March 6. So as per inlayer requirement we would start consolidating them. I would say technically from the first quarter of next year. Most probably even chatcom. But I believe because we removed all the low value, low hanging, high labor content businesses, one of that is where they were fabricating the CGPT small tank. We believe we could have multiple suppliers for that at a cheaper cost. And it was a very highly labor intensive, almost 350 people in that business. So we removed out. I believe the total impact of that would be about 1 1.5 crores maximum. So we removed a lot of future liabilities as a part of the plan.
Naman Parmar
Okay, yeah, understood. And lastly on the if you see on a standalone basis. So how much revenue potential can you do without the capex and after that the capex going live, how much additional revenue you can do?
Bharanidharan Pandyan
At this moment we are almost close to being maxed out in our current facilities that we have. That is why we are expanding all the facilities that we have including Kochi. We have done a small amount of incremental machine addition even in our existing facilities. However, if you look at what the growth potential looks like because we start the coil products year starts from April. We are starting off with 182 crore already and about a 450 crore likely to come in the near term. We believe we will not be in a position to handle about 800 or 900 crore of order book in the current facility. So we will need a facility at least 3 to 4x our capacity. We believe the new investments will go at least 8 to 9x of our current capacity. So that is why we are spending a little bit more money so that we are able to go to the market in a stronger way. As a part of our ipo we have already raised a lot of money for the machinery for backward integration of cable manufacturing and test equipment. So believe some of the investments are already being done including the cost of living.
Naman Parmar
So you are telling from the current facility you are already at the maximum capacity utilization and you are expanding capacity and it will be coming by the next 12 to 15 months. Right. So on a standalone basis, there will be not major growth, but the growth will be coming from the acquisition that you have done, the Meru Electrical and the other player and docs and all that. Is it understanding correct?
Bharanidharan Pandyan
Your understanding is correct. But most of the orders are high value orders that we are picking up right now have a delivery period between 18 and 36 months. Which means by the time we come for execution, we are already having the facility. We will see a significant increase in order growth in our call product facility by the time that we finish the factory.
Naman Parmar
Okay, understood. And lastly on the Nevis sky, the EMS business, the energy management system that the 15 or 16 stake that you have taken in that company. So I just wanted to understand on the energy management is the software that the company is providing is how is different from the SCADA software that is provided by the various MNC blade like Siemens, Nider, abb.
Bharanidharan Pandyan
So the product is technically not ems. What they are doing, they are doing something called edge computing. Edge computing is a software is more of an ML software, machine learning. It’s a regression on a large data that you get based on the. Based on the data that flows through a normal data system. In case of a network disruption or due to whatever the reason, the computer or the device is able to take a decision itself. We believe and there is already proven in places like Australia, US where going forward there will be a lot of unmanned substations going on because there is a huge shortage of skilled technical engineers to man the amount of substations that globally people are bringing in.
It will not be possible over the next few decades that you will have every substation manned. So when we go into unmanned substation, we will need to connect all the high voltage devices out of our group, including the power electronics and the power products that we have. When we are connecting these devices, Internet network can get disrupted at any time. So due to that we will need to have a kind of edge computer or a machine learning device which will be able to communicate with the system in case of a network disruption for its continued operation. So instead of spending the money on ML and AI engineers internally, we have decided to invest so that we have access to the technology and refusal of the technology to the competition. So for them that is a technology that they are encompassing. That is what they are spending money on. EMS is to get the cash flows on for that company.
Naman Parmar
Okay, means basically you are providing the company is providing a computing sensor and all that that will be able to com communicate with the high voltage various electronics equipment with the satcom devices and able to provide which
Bharanidharan Pandyan
It will be like a small device which will be monitoring all the data traffic which is going through it. And based on the data and the decision taken, it will be learning itself at some point of time, when the command does not come, it will be able to take a decision itself based on past data. So that is a device that is called Edge computer and. And we believe this edge computer will be on most of the high voltage devices going ahead in the future in unmanned substitution stage.
Naman Parmar
Okay, so this is the first company to produce this or manufacture this electronic equipment or there are various other player also that are doing it.
Bharanidharan Pandyan
There are a lot of people who are doing it enough as a part of R D because we know that the technologies will shift to connected ecospace over a period of time. What we have done, instead of hiring ML and AI engineers, we have decided to outsource it by buying an equity. That’s all.
Naman Parmar
Okay. Yeah. Yeah. Thank you so much for answering all the questions.
Operator
Thank you. The next question is from the line of Surbhi Saroji from Smith Capital Market. Please go ahead.
Surabhi Saraogi
Hello. Am I audible?
Operator
Yes, ma’am, you are.
Surabhi Saraogi
Sir, my question is. The first question is that revenue has declined both quarter and quarter and year on year and for nine months also both at the standalone and consolidated level. So what is the reason for this decline?
Bharanidharan Pandyan
Ma’am, the standalone has not declined. As we say that if you look at the standalone number, we are almost close to 112 crores of sales as against 117 crores of last year. It is just that the Q2 or Q3 of last year has been exceptionally high like the Q1 of this year. If you look at the Q1 of this year, out of the 50 crore PAT of the first half, almost 36 crores came from the Q1 and 14 crores came from the Q2. Because we did not have the discipline earlier on a quarter on quarter number which we realized the mistake. At this moment you are seeing such high variations. However, with the improved management focus and what we said, the new companies which are more manufacturing where the variability of income is not very high, we believe in the next two or three quarters it should ease out or even out. So it is just that last the Q3 was kind of a blip and nothing more.
Surabhi Saraogi
Okay. And sir, can you give some revenue and profit guidance for the full year, financial year 25 and also for financial year 26?
Bharanidharan Pandyan
I believe at this moment what we say, we are looking at a positive increase on revenue rather than any decrease. That is point one. Point two is. I do not know whether I am allowed to speak about future revenue and guidance. However, I can tell you that Nehru has done almost 220 crores last year and stack one has done about 170 crores last year which. Which would get added to whatever we have already done. So that would be the kind of numbers you can look at undergrowth that is immediately visible to us.
Surabhi Saraogi
Okay. And, sir? Another question is that any. Any growth in revenue for Meru and Statcom for over. Over financial year 24 and also for financial year 26.
Bharanidharan Pandyan
We shall be at this moment, sir. Amen. Instead of growth at that side because we’ve already grown as a. As a console. We have already grown. Our focus at this moment with both the companies would be improvement on margin and margin. What we could presentage it including integration of management. That would be our immediate focus. Before we scale them up. We would rather focus on the grounds and the structure below the company. We would like to focus on the key management people, the culture integration people integration and profit and customer change. That’s what our focus is. Not growth at this moment with both the companies.
Surabhi Saraogi
Okay. Okay, sir. Thank you.
Operator
Thank you. Before we take the next question, a reminder to all the participants that you may press star and one to ask a question. The next question is from the line of Sagar Tanna from Alchemy Ventures. Please go ahead.
Sagar Tanna
Hi sir, if you can give a breakup of the first nine months versus the last nine months in terms of our product portfolio. What percentage of products came, what percentage of revenues came from what product segments that would be helpful.
Bharanidharan Pandyan
At this moment I believe we are close to 50. 50. Both power products and Power solutions. However the forward guidance would be the Power solutions would be about 20 to 25% of the total.
Sagar Tanna
And when we say power products means predominantly it would be coils. Is my understanding correct
Bharanidharan Pandyan
At this moment? At this moment it will be the predominantly coil in the order intake. But on the delivery it is instrument transfer. Because instrument transformers have a higher balance sheet from a Mary perspective. But in about 15 months time frame because where we have to execute all the new orders being booked. I believe internally the coil products will be the largest group inside the company that will deliver the top line and bottom line in the future.
Sagar Tanna
Correct. This is for the first the nine months FY25. And what about nine months FY24. What was the revenue split? Sir, so we did 262 crores last year for the first nine months if you can.
Bharanidharan Pandyan
I believe it has been traditionally been around 4060 power products. Being 40 and 60. That has been approximate number given the past solutions have always been bigger internally. But at this moment because we are growing at a far higher rate than the other businesses. So we would be little more down there.
Sagar Tanna
It got it. And sir, in your press release you’ve given four product segments or four different segments of businesses which is coil products, transformers, instrument transformers and power quality. Can you give a broader margin range in terms of what would be the gross margin ranges across these four segments.
Bharanidharan Pandyan
What I can do is I can talk about what we have already delivered in the nine months and what is historical. So if you look at Nehru, it is now close to 10% at this moment. I think between 10 and 11. That is what MERU is at this moment. In a nine month number for the power products and power solution, that is NDOCs portion of it, Quality Power and NDOCs, I believe we should be slightly north of 20. And with regards to Satcom, because we are still not acquired, I would not be able to comment on that.
Sagar Tanna
And on the coil products, sir,
Bharanidharan Pandyan
The coin products, I would say north of 20 at this moment.
Sagar Tanna
Thank you so much. Got it, got it. Thank you so much.
Operator
Thank you. The next question is from the line of Mahesh Bhendre from LIC Mutual fund. Please go ahead.
Mahesh Bendre
Hi sir, I’m sorry, I’m not able to understand. The revenues for the quarter has been declined by 49% and even for nine months the decline has been 13%. So I’m not able to understand why such a sharp decline.
Bharanidharan Pandyan
The revenue you are comparing with the last year where we had two things which was very significant. If you look at Q3 of last year, Q4 we had only done 30 crores. Whereas what we say that quarter alone did in excess of 50 or 60 crores. So because we had what we said, very large Q3 of last year, it seems at this moment that we are down. But technically I believe it is not so bad. A, we have grown every quarter internally. NDOCs, which is our power solution, power quality business, they have a couple of projects which are lagging it looks because the last quarter, if you look at the last quarter of that last year there was only about 30 crores, give and take. Whereas which is very, very small number historically. Even if you see what the 9 month numbers look like. So this would also reverse in Q4 there we would show a huge growth because of what happened in Q3 last year.
Mahesh Bendre
Okay. And sir, out of the total revenue, how much is the production has we done from India and how much is from the Turkey
Bharanidharan Pandyan
At this moment? About 50. 50 at this moment, sir. That is what we foresee technically approximately.
Mahesh Bendre
Okay, and sir, last question from mind is the expansion we are talking about, will that happen only in India or is it that the expansion we are looking at overseas facility as well?
Bharanidharan Pandyan
In the overseas facility we have almost 40 acres of land on the books of the account close to Ankara, that is the capital of the country. We have. The people as in where the demand kicks in. Because what they are doing right now is because of the Turkish economy slightly muted where they are the leading players because of the geopolitical situation. As and when we see that the Turkish economy is back to square one, we have enough money and customers to be able to expand there. At this moment there is a huge shortage of coil products across the globe. We are one of the very, very few people across the globe and maybe the only person in India to deliver this product. So almost all the money that we are spending on Capex is going to the coiled products. In Nehru we have been having discussions to start the 765kV line of the instrument transformers. We may see a small Capex in the next few quarters at Nehru also.
Mahesh Bendre
No, but some majority of Capex will happen in India, right? Indian facilities.
Bharanidharan Pandyan
Correct, Correct.
Mahesh Bendre
Okay, okay. And sir, last question. I mean some of the components like the Statcom which are used in Statcom or high end transmission that we manufacture basically in Turkey, right? In India basically we manufacture transformer as of now.
Bharanidharan Pandyan
No sir, we make the power electronics and software in Turkey. In India we make the coil products, transformers, instrument transformers and the harmonic filter solution. So all the high voltage electrical equipment where we are using man in the factory we are using in India. The power electronics and software is what is based out of Turkey.
Mahesh Bendre
Okay, sure, sure. Thank you so much sir.
Operator
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants, please limit your question to two per participant. If you have a follow up question, I would request you to rejoin the queue. The next question is from the line of Bhavik Shah from MK Ventures. Please go ahead.
Bhavik Shah
Yeah, hello sir, so my question is regarding the. Yeah, hello. Sir, am I audible now? Hello, I’m audible.
Bharanidharan Pandyan
Yes.
Bhavik Shah
So my question is regarding the EBITDA margins. Like we can see a sharp increase. The reason being the other expenses have decreased significantly. So what are those other expenses which are not incurred this quarter and what is the fixed cost run rate? We can take
Bharanidharan Pandyan
One second sir. I will give it to my senior vice president Finance Sarika who will speak about the other expenses and the other cost. What you just asked on the cost. Just one second. Hello.
Sarika Jadhav
Yes sir, our employee cost and our finance cost remain stable wherever our other expense. Expenses because of some foreign exchange gains or that is because of hyper inflationary accounting treatment. So that is because of hyperinflationary accounting that other expenses.
Operator
Ladies and gentlemen, we have lost the connection of the management. Please stay connected while we reconnect them. And gentlemen, thank you for patiently holding. The management is back on call, so please proceed. Yeah, management
Sarika Jadhav
Is answering the other expenses because of that foreign exchange, net monetary foreign exchange gain or loss that our other expenses has been decreased. And because of that there is certain improvement in our gross margin.
Bharanidharan Pandyan
Use the ifrs for the foreign currency Translation of our account statement from Pepi. They also have an IAS 29 that is an accounting treatment on how they handle foreign exchange regulations. So wherever our price variation process taken positive, it will also take a negative at certain times because Turkey the hyper inflation is coming down. So the negative impact has become utilized and only positive income. But this is how the accounting treatment of the solution is. However, most of our orders are hedged to the dollar and hence it has nothing to do with what we say expense or cash flow. It is just a accounting adjustment of where it is the number is put.
Bhavik Shah
Understood, sir. So what is the fixed cost run rate? It quarterly or annually which we can take going ahead. I’m sorry sir, we did not understand the question. I will just ask one of my colleague to what we say work on it. Can we go to the next question till my colleague works on it? Yeah, sure. Sorry to interrupt. So may I request you to please use your handset? Yeah, using the handset is it not audible now? It’s much better. Can you please repeat your question? Yeah, so. So our order book is around 517 crores. So what is the timeline for execution of this order book? And so regarding the order pipeline, what has been our success rate in getting the orders?
Bharanidharan Pandyan
Out of the historical success rate of getting the orders? So most of the orders that we have signed on is having a delivery between 12 to 18 months at this moment the orders that we would sign on have a larger delivery period of between 12 and 36 months because these are linked to HVDC that is the delivery. So I believe our capex will catch up by then. That is point one. Point two. When you are asking me a fixed cost run rate this is. Can you please explain the the terminology?
Bhavik Shah
So basically the. Basically I’m trying to understand what. How can operating leverage here because like for example we have 30 crores of or 20 crores of fixed cost quarter that will remain irrespective of the execution we do. So this time the operating leverage that will come into play. So you just do order execution. My cost will remove, some cost will remain.
Bharanidharan Pandyan
Our fixed costs are very low because most of the assets are owned. I would say 99% of the assets are owned. The what we say the labor and labor overheads are very close to negligible to the profits and the money. Even though I believe the amount of cash we are sitting on hand the interest costs are higher than the fixed costs are payable.
Bhavik Shah
Okay, yes, answer regarding our historical order book win. So out of this 700 crores how much orders can we win? Basically
Bharanidharan Pandyan
Out of the order book of 500 crores, what do you want?
Bhavik Shah
No, no, no, no. Out of the pipeline of 700 crores like how much order? So what has been a historical win rate?
Bharanidharan Pandyan
So these are that we are very close to confidence. That’s why we are able to deliver the number. Our historical win rate in HUBC and fax business in India is one. So every strike we make in India is normally one. Globally we have one is to three or one is to four.
Bhavik Shah
Thank you so much.
Operator
Thank you. The next. Next question is from the line of Majat from Tradewalk Research llp. Please go ahead
Majid
I’m audible Sir yes sir yes sir my first question is is the delay in the lay project due to the fact that is a VSC based order which is the latest technology in India and thus facing implementing implementation challenges or is there any other reason for the del. And my second question is additionally could you clarify difference between LCC and VSE orders and which would be more beneficial for us Also given the government’s focus on HVDC project, which type of HVDC orders is it prioritizing?
Bharanidharan Pandyan
I will answer your question sir. The delay in any power quality solution can be either during engineering or the customer approval or the project life cycle where the product being delivered is delayed or at the election level where the civils of the location site are delayed because these are all heavy electrical infrastructure equipment. So there is about three variables that come into picture at this moment. I believe this is during the operational delivery where the delays of equipment are getting delayed across the life cycle. Not only for us for most of the peers also in the similar business that is point one the point two on BSE and MCC hudc we supply to both, both have similar requirement of our product lines. We support both the technologies HVDC or in Statcom or SVC where again they have a difference between thyroster and igbt. Our products are required in every technology that they come in and we are qualified for all the technologies with all the major players for supply.
Majid
Okay sir, where do you see the major growth between LSE and VSC?
Bharanidharan Pandyan
The Indian growth is based on fax business I.e. flexible AC transmission where the government has made a mandate that 33% of all renewable energy parks will need to have a fax device. We believe that with every solar park there is going to be a demand of our equipment. With every wind park there is going to be a big demand of our equipment and with every hvdc. So HVDC is far and few in India. Maybe we will have another two more coming up in this year. But facts we are seeing almost three or four projects every month and globally when I look at it the other way they are focusing more on hvdc. If you look at in Europe in tenet that Netherlands utility very small country has given more than 30 billion euros of order in 2023. UK is another small country where HVDC of 59,000 crore has been given a couple of days back. We believe the HVDC potential of the world is to watch out for the few qualified suppliers outside of China. There are two in Austria and one of us. So the amount of capacity that we can deliver will also be a bottleneck. What these projects would come up with.
Majid
Thank you sir.
Operator
Thank you. The next question is from the line of akub Khan from A3 Investing. Please go ahead.
Yaqub Khan
Hello. Yes sir. You’re audible, sir. My. I have only one question for next quarter. That is Q4. Are we expecting a similar number of numbers or will be there Any expected growth will be there, sir.
Bharanidharan Pandyan
I believe it’s a forward looking statement, Mr. Khan. But what I can assure you there will be a growth.
Yaqub Khan
Okay sir. Thank you sir.
Bharanidharan Pandyan
Thank you.
Operator
Thank you. The next question is from the line of Sarvam from Shine Star. Please go ahead.
Sarvam
Hi sir. Am I audible?
Operator
Yes, sir.
Sarvam
Yeah. Just one question sir. If you could just summarize the assets that you have on the book. I believe with the recent acquisitions also there would have been some more acquisition of assets such as land and machinery. If you could just talk about for example your land bank and summarize that and potentially and prospectively what would be the market value of that land as on today. If you could talk about that, sir.
Bharanidharan Pandyan
As a conservative south Indian management we normally like to buy rather than. Even though we believe lease is better from a financial point of view. The land bank, what we are sitting in Sangli, it’s about 15 acres. We believe is give and take. At a market value would be about close to 100 crores. The place what we have in Cochin may be about 5, 6 crores in Delhi. Nehru is sitting on a 5 acre land bank in Biwadi. That is NCR region. Very close to the Lenskart factory. We believe as per the RAC rate it is about 125 crores. That is the land alone. Not the building of the square feet, the building on top of it. Stackcon. We believe they have close to three and a half acres of land in Noida. Again would be in excess of about 60, 65 crores. In land in Turkey we are sitting at about 40 acres of land which would I believe in best case scenario would be about 70 to 90 crores of value.
Sarvam
Got it. Thank you. Thank you.
Bharanidharan Pandyan
Plus the office buildings and stuff which is in downtown. We believe that would be about 50 crores.
Operator
Thank you. A reminder to all the participants that you may press star and one to ask a question. The next question is from the line of ABHI Mainwala from Vice Capital. Please go ahead.
Abhi Mainwala
Hello. Am I audible?
Operator
Yes sir.
Abhi Mainwala
So 20% Avida margin is standalone or blended. Hello.
Bharanidharan Pandyan
I believe is blended, sir Right now to..
Abhi Mainwala
And in DRSP there is a forecast for HUDC and facility market of around 70% CAGR. So are we going with same pace?
Bharanidharan Pandyan
So the order book what we have given showed you about 450 crore give and take on the power product business. Almost 70 to 80% of it would be going into HODC and FAX and same way NDOCS is also into fax. So we believe that everything is what we have declared is online. So compared to last year I believe if you see it with the order book what we have, what we are generating, I think our cagrade is slightly much higher than the 70 or 80%.
Abhi Mainwala
Okay, thank you.
Operator
Thank you ladies and gentlemen. You may press Star and one to ask a question. As there are no further questions from the participants. I would now like to hand the conference over to the management for closing comments.
Bharanidharan Pandyan
This is Dani here. Again, thank you for joining our Q3 con call. In summary, I want to thank you all for your time and we reiterated that we are committed to the future and look forward to continuing our post IPO journey with your support. If you have any further questions I would be happy to answer them either over what we say, a private call or you can come through us through our investor relations advisors Churchgate Partners and we will be happy to address your queries. Thank you.
Operator
Thank you on behalf of ICICI Securities Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines.