RITES Limited (NSE: RITES) Q3 2025 Earnings Call dated Jan. 29, 2025
Corporate Participants:
Rahul Mithal — Chairman of the Board, Chief Executive Officer, Managing Director
Analysts:
Vishal Periwal — Analyst
Vinamra Hirawat — Analyst
Nemish Sundar — Analyst
Shreyans Mehta — Analyst
Viraj — Analyst
Parimal Mithani — Analyst
Presentation:
Operator
Good morning, ladies and gentlemen. I am moderator for this conference. Welcome to the conference call of Rights Limited to discuss its Q3 and FY ’25 results. We have with us today Sri Rahul Mittal, Chairman and Managing Director; Arun Kumar Singh, Director Projects; Dr Deepak, Director Technical; and Shri Krishna Gopal Agarwal, Director Finance.
At this moment, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. At that time, if you have a question, please press 1 on a telephone keypad. Please note, this conference is being recorded. And in the interest of time and fairness to all the participants, you are requested to restrict yourself to one question per participant. Time permits, you may come back-in the question queue.
Now, I would like to hand the floor over to Shri Rahul Mittal, Chairman and Managing Director Rights Limited. Thank you, and over to you, sir.
Rahul Mithal — Chairman of the Board, Chief Executive Officer, Managing Director
Morning. Morning, everyone. Let me start with giving the safe-harbor statement. The presentation and the press release, which we uploaded on our website and exchanges yesterday and discussions during the call today may have some forward-looking statements. These statements consider the environment we see as of today and obviously carry a risk in terms of uncertainty because of which the actual results could be different and we do not undertake to update those statements periodically.
So let me start with a brief overview of the Q3 performance before we leave the floor open for questions. So as you see, the Q3 Y-o-Y ‘2 has a dip of about 15% to 16%, both in top-line and the bottom-line. If you see sequentially, there has been an uptick in all the parameters, whether it is the top-line, whether it is the EBITDA, the PAT and in fact, both the EBITDA margins and PAT margins also have been about — about a 1% growth.
So this is in-line with our focus as we’ve been saying right from the beginning of this FY are in-line with our focus strategy of improved execution. The second-prong of our two-pronged focused strategy was to get aggressive order inflow. And as you must-have seen, this quarter has broken all records. We’ve got about 110 plus orders totaling to INR1,900 plus crores, which is nearly equivalent to the INR2,200 crores which we got in the entire previous FY. And it is about three times the order inflow of quarter two.
So that’s the kind of order inflows. We have maintained a strike rate of one order a day now successively for four quarters. We’ve got an order book now of INR8,000 crores, which is an all-time high. So the performance to my mind, while Y-o-Y, definitely there is a dip. But in terms of the performance of Q3, in-line with our stated two-pronged focus strategy of improved execution and aggressive order inflows has been in-line with our, as I said, our guidance and as our strategy at the beginning of this FY and this would be the trend that we see moving forward into Q4.
So with those opening remarks, I leave the floor open for questions and I’ll come to specifics in response to questions.
Questions and Answers:
Operator
Thank you. Now we begin the question-and-answer session. If you have a question, please press star and one on your telephone quiby. In the interest of time and fairness to all the participants, you are requested to restrict yourself to one question per participant. Time permits, you may join back the question queue. The first question comes from the line of Vishal Periwal with Antique Stock Broking. Please go-ahead.
Vishal Periwal
Yes, sir. Thanks for the opportunity and congratulations on good order win. Sir, in terms of execution, I know I mean like inflows has been pretty robust. So when do you see execution picking-up, particularly, say, for turnkey, though we have orders, but on year-on-year basis, revenue has declined last quarter also in this quarter also. So any color on that will be helpful, sir.
Rahul Mithal
Yes. So good morning, Vishal. So specifically for turnkey, you see the — the dip Y-o-Y has been as the older turnkey orders like, like for example, railway electrification, et-cetera, they have now nearly reached their completion and the fresh order inflows in the turnkey segment and overall, in the last quarter and this FY, these whether it is turnkey, consultancy or Expotec will start generating definitely revenue Q4, Q1 onwards.
And as I said, Q4, we would strive to continue the sequential trend. But if you see on a Y-o-Y basis, I definitely see the coming FY ’25, ’26 on at least a 20% growth on the top-line, which would result because of these revenues flowing in from all whether consultancy, Expotec or turnkey. So this is our — our target, our aspiration to see a 20% top-line growth in the coming FY vis-a-vis the current FY.
Operator
Thank you. MR. Periwal, please rejoin the queue for more questions. Next question comes from the line of Hiravat with JM Financial. Please go-ahead.
Vinamra Hirawat
Hi, sir, I hope I’m audible.
Rahul Mithal
Yes, good morning, Vinamra. Go-ahead.
Vinamra Hirawat
So I just had one question, which is on exports. So now we have Bangladesh and Mozambique both in our order books. I want to know what percentage of these will be executed in FY ’26, the timelines of these orders and the margins for these orders. Last year, we had like 21% in exports margins. Is it higher than that for these orders? And an update on Zimbabwe, if possible?
Rahul Mithal
Yeah. So let me first break-down your question into three, four parts. First is in terms of execution. We have an order book of export of about INR1,300 crores, which includes Mozambique, Bangladesh and South Africa. So these will definitely — as I said, they have a lead-time of about 12 to 18 months.
So we foresee order — these orders start giving us revenue in the next FY and then at least to a minimum of 40% of this order of this order book of INR1,300 crores in, we aim at least on a minimum 40% odd to see the revenue realization in the coming FY. As I said, the export revenue gets booked only when the bill of ladying is happens.
So that’s why there is a staggered revenue booking. In terms of the Zimbabwe, you asked a question. Well, still it is not part of our order book and the funding which is being sourced by them from Bank, that is still being pursued jointly by the National Railway of Zimbabwe and us, but it is still to reach a finality.
We are hoping that it does so because it’s been a long-time since it’s been in the process. In terms of margins, these orders, both Bangladesh and Mozambique have been for the first time in the history of about four to five decades on a competitive basis. The Bangladesh order was a global tender, an EIB funded tender.
So margins cannot be in the range which were there in the line-of-credit exhim bank tenders margin was much lesser. So the 20-odd percent margins, which have been traditionally there in the export extreme, the margins will be much, much lesser. Each order would have a different margin. So on a blended basis, it would be a — would work-out to lesser. But on overall , by and large, it would be definitely much lesser than 20-odd percent, which has historically been there in the export exchange.
Operator
Thank you. MR. Hiravat, please rejoin the queue for more questions. Next question comes from the line of Namish Sundar with Elara Capital. Please go-ahead.
Nemish Sundar
Yeah, thank you for the opportunity, sir. Am I audible?
Rahul Mithal
Yes, Namish, go-ahead.
Nemish Sundar
Yeah. Sir, just continuing on the exports question, I just wanted to ask, so how is the export pipeline now? And are we expecting any export order this year or could we expect a big order next year in-line with your guidance of one big export order a year?
Rahul Mithal
In fact, I must tell you, we broke the hiatus about four quarters back and we made a target that we’ll try and get an export order every quarter. And we have maintained that. The last four trailing quarters, we’ve got an export order in every quarter. We — there are a lot of bids in the pipeline and we will continue to strive to get at least one export order in every quarter.
Some could be big, some could be of a lesser medium-size, but definitely with the kind of opportunities and the aggressive bidding that we are doing, not relying on the traditional line-of-credit opportunities, which are hardly there now in terms of export of rolling stock. So we foresee that we will maintain this trend of getting fresh export tech orders in the coming quarters.
Operator
Thank you. MR. Sundal, please rejoin the queue for more questions. Next question comes from the line of Shriyansh Mehta with Equirus. Please go-ahead.
Shreyans Mehta
Yeah, thanks for the opportunity. Sir, one book with keeping question. What would be the net cash on our books as on-date, our own cash?
Rahul Mithal
Yeah. So our cash balance is about INR609 crores and the rest we keep as a client fund which is separate, which we don’t — that’s a client fund about INR2,600 crores, which we do not take onto our balance sheet. So that’s separate that accountal is separate. So our cash balance is about INR609 crores.
Shreyans Mehta
Sure.
Operator
Thank you. MR. Mehta, please rejoin the queue for more questions. Next question comes from the line of Viraj with Jupiter Financial. Please go-ahead.
Viraj
Thank you. Yeah. Good morning, sir. My question is, now more than around 45% of the revenue coming from the turnkey, so is it going to be new normal now for us because of this kind of circumstances we are in because the tonkey pie is increasing, so and the margins are lesser there. So given the margin — new PAT margins also would be new normal?
Rahul Mithal
Yeah, good morning, Viraj. So let me put the reply in a reverse manner, you see, we have been aiming that the consultancy revenue remains definitely 50% plus and that is what is going to remain. In some quarters, because the export revenue was not there, you saw a bigger contribution from the turnkey segment. But moving forward, as the export revenue will also be substantial, there will be a — on a quarter-on-quarter basis, there will be a mix of turnkey and export, yes, yes, turnkey would definitely have much lower margins compared to export.
But overall, the overall EBITDA margins of about 20 odd percent on a consol basis and PAT margins of about, 15%, 16% on a consol basis. To my mind, as I’ve been indicating in the last quarter also, this is the bottom of the barrel that we have reached. And we would strive to maintain these levels of EBITDA and PAT margins on a consol basis with a blend of the different streams of high and low-margin revenue.
Operator
Thank you. MR. Viraj, please rejoin the queue for more questions. Next question comes from the line of Sundar with Elara Capital. Please go-ahead.
Nemish Sundar
Thank you for the follow-up opportunity, sir. So I just wanted to know in the quality assurance, I think we saw some dip this quarter due to some increased competition. So could you please give some more clarity on that?
Rahul Mithal
Yeah. There’s not really a dip. The overall in quality assurance has been as you are aware of the change dynamics vis-a-vis last year. So yes, if you compare on a Nine-Month to nine-month basis as the new orders started kicking-in from Q2 of last FY or Q3 of last FY, gradually sequentially, there has been a dip in the contribution of quality assurance to the overall consultancy revenue.
But in terms of sequentially now because of a larger client base, in fact, last FY, if you see the total revenue was about 60% from IR and about 40% from non-IR, that has slipped now. And now we are about 60% on non-IR in this quarter and about 40% in IR as a client.
So because of the larger base of quality assurance clients, whether it is state governments, renewables, solars, power transmission, oil companies, gem portal, et-cetera, the revenue mix is changing and the levels of quality assurance revenue contributing to the overall consultancy revenue is seeing now — will now have seen the — as I said again a few quarters back, the bottom of the barrel is only going to increase now in sequential quarters because of the larger order book and larger client base.
Nemish Sundar
Okay, thank you, sir. I’ll get back-in the queue.
Rahul Mithal
Yeah.
Operator
Thank you. Next question comes from the line of Viraj with Jupiter Financial. Please go-ahead.
Viraj
Yes, sir. Regarding the guidance you said in the last call, we’ll be matching last year’s number, right? And so the current year guidance should be what last year’s plus 20% growth and 15% PET margins, is that correct to think? That should be the basis for my analysis?
Rahul Mithal
You see, if you see nine months-to nine months, we’ve had a hit of about INR200 crores on the top-line. And if you break it down, this INR200 crores — INR100 crores is because of export revenue, which was nearly nil this year in the nine months, INR50 crores is a hit because of quality assurance revenue and INR50 crores is the hit because of turnkey revenue, which as I said, the turnkey projects which were finishing.
So this is a INR200 crores hit in the top-line. The bottom-line hit in these nine months is about INR80 crores. This INR80 crores, about INR40 crores is because of this dip of INR200 crores and another INR40 crores is because of the dip in EBITDA margins Y-o-Y by about 5%.
So that’s the total trend for these nine months of that moving forward and that’s in terms of percentage, nine months-to nine months, the top-line has taken a dip of about 11% and the PAT has taken a dip of about 25%. So moving forward for this FY with again increased focus on execution in Q4, what we will definitely strive to come as close to the previous FY, we are aiming that the dip in top-line should be at least below 10% and the dip in bottom-line should be in the range of aiming to be 20% or at least aim below 20%.
So that’s as far as this FY is concerned, the execution is going to be the focus for coming quarters as it has been and this huge order book of INR8,000 crores will start generating revenue Q1, Q2 onwards. And we are aiming, as I said, for the coming FY a growth of at least about 20% on the top-line vis-a-vis the FY ’24, ’25. And margins we are aiming to aspiring to maintain at the current levels of about 20 odd percent on a consol basis EBITDA margin and about 15% 16% PAT margins.
Viraj
So, sir, we’ll be closing this year-around 2,400 recurrence revenue, right, that would be the target to strive. Is that correct to think?
Rahul Mithal
Yes. In terms of numbers, as I said, to aim, we are about 11% down on-top line, aiming to be 10% or below 10%, so somewhere in that range. And in terms of profit, we are about 25% down. So aiming to be about 20% odd in that range. So that Q4 execution will aim to bring the overall FY in that range.
Viraj
So the Q4 would be the better quarter, which try to be the better quarter for the year. That would be right?
Rahul Mithal
Yes, definitely. Q1, Q2, Q3 have been sequentially improving and definitely Q4, we are aiming to be better as Q3 has been better vis-a-vis Q2 in all parameters , whether it is the top-line, whether EBITDA, PAT and even margins have gone up by one-odd percent. So Q4, we would aim at all parameters, we again aim that sequentially improve over Q3, Q3.
Viraj
Thank you, sir. Thank you.
Operator
Thank you. A reminder to all the participants that you may press star and one to ask a question. The next question comes from the line of Viraj with Jupiter Financial. Please go-ahead.
Viraj
Yes, sir, what will be our dividend policy would be the same as last year, maybe around 90% payout?
Rahul Mithal
Well, as you see, the dividend payout for quarter three has been about 95% plus averaging out even if you take all the 3/4, it has averaged out to about 95% plus, which is in the range of the overall of last FY, which again was about 95.2%. So moving forward, we see — I mean, I don’t want to be we — but this is the trend that we would definitely like to continue.
We don’t see any major change in our policy. We are a low capex company and debt-free company and we would like to maintain this trend.
Viraj
Thank you, sir. Thank you.
Operator
Thank you. Our next question comes from the line of Parimal Mitani with Credential Investments. Please go-ahead.
Parimal Mithani
Sir, thank you for the opportunity. I just wanted to get a clarification in terms of consultancy, you had a tie-up with one of the global consultancy company. How does that — how is that tie-up going across? If you can elaborate and in terms of Middle-East, if you can throw light how are you progressing there, there?
Rahul Mithal
Parimal, I — which tie-up are you talking about? See, we have — we have in Middle-East, we have a MOU with Ethihad Rail, which is the leading player in rail infra. We haven’t — we tied-up last year with Abu Dhabi Ports, which has not only presence in UAE but across Africa and Asia imports and other infra like economic zones and logistic.
So we are working with them. We are exploring various opportunities and these are early days in the last few months. So I’m sure that we will — we’ve already opened an office in UAE and moving forward, also working on the IMEC corridor. So these will definitely generate more-and-more opportunities and orders in the coming quarters.
Parimal Mithani
Okay. And sir, in terms of my first question about the quality assurances, you had a tie with some global major for consultancy business in India. So can you — I forgot the company name, but it was one of the companies that you had a for tie for consult at the. Can you get some light on that?
Rahul Mithal
Yeah. Yes. So that tie-up has already started yielding results and we have got an order from a railcoach factory Kapotala for the safety audit of the electrical systems in the coaches being manufactured. And also we are — we’ve got an order for Bharat rates also, inspection of quality assurance of Wanday Bharat so that tie-up is giving us results.
Parimal Mithani
Okay, sir. Thank you.
Operator
Thank you. Next question comes from the line of Pinavra Hirawat with JM Financial. Please go-ahead.
Vinamra Hirawat
Sir, I just wanted to understand your or REMC segment a little better. You know why we’re not getting orders and is this a segment that we can scale better in the future?
Rahul Mithal
You see, RMC has primarily a consultancy company for bar procurement for Indian Railways. And it has been showing a steady revenue of about INR30 odd crores on every quarter, INR35 crores in fact, this quarter. It’s showing a PAT of good INR19 crore INR20 crore this quarter, it has been INR19 crores is given a good dividend.
So it is linked to the power consumption as more-and-more electrification is happening and it is definitely going to grow. One of it also revenues comes from doing renewable tenders for Indian Railways, which we got a revenue when we finalized one tender of RTC and we have already — other such tenders are in the pipeline. And as we finalize them, this would also add to the revenue.
Vinamra Hirawat
Okay. Thank you
Operator
Thank you. Next question comes from the line of Viraj with Jupiter Financial. Please go-ahead.
Viraj
Yes, sir, would you like to throw some light for the opportunities in terms of EEMC project?
Rahul Mithal
Pardon me
Viraj
The EMC that the South is the Middle-East corrid which government is thinking about. Do we have any play there?
Rahul Mithal
The IMAC project, yeah, the IMAC corridor. So as I mentioned we have set-up office in UAE. We are working with our two MOU partners there. Also, we are working here in close collaboration with the shipping ministry to, you know, to develop a certain digital interface for — in this corridor, which is basically for ease of doing business is virtual trade corridor. So these are definitely a huge opportunity for us, both in terms of the India side and the UAE side for leveraging opportunities in this IMEC corridor.
And I see in the coming years and quarters, definitely some orders more coming up in this.
Viraj
Okay. And any numbers in terms of addressable market side?
Rahul Mithal
See, this is early days of development of this corridor and our engagement with various players in this has already started and it’d be unfair to give a right number right now, but you can appreciate that the opportunities are huge and our presence there and our MOUs in UAE as well as our working already with the various stakeholders on the Indian side have opened up a huge number of opportunities.
And I’m sure in the coming FY, you will see some finite orders coming up in this regard.
Operator
MR. Viraj, please rejoin the queue for more questions. Next question comes from the line of Shriyansh Mehta with Equirus. Please go-ahead.
Shreyans Mehta
Yeah. Thanks for the follow-up. Sir, how should one look at the Bangladesh export order in terms of execution and in terms of working capital? I know we’ve guided for closer to 40% coming from that 1,300 odd, but primarily how should one look at the Bangladesh given the recent developments?
Rahul Mithal
You see, Bangladesh is about a INR900 crore order and there was a slight few months of a slight you know hit in terms of movement of this order which has resulted in sliding of the execution to the next FY. We were hopeful that we would be able to execute at least 40 odd coaches by this FY, but because of those few months, it has slided into the next FY.
But things are really picked-up and we are closely working with the — there — with the Bangladesh Railways and I see that execution is definitely going to start by middle or latter part of the coming FY because there are the initial designs have been submitted for prototypes and they are under various approvals.
And then manufact, once that is done, manufacturing is not going to take much time because these are — we have a huge manufacturing capacity. And I see the revenue realization definitely happening by the latter part of the coming FY.
Shreyans Mehta
Is there any color on working capital cycle? I mean, will these payment be shift?
Rahul Mithal
So there will be a very minimal working capital requirement and it will keep — it will come — keep coming phase-wise based on the total production that happens, but it will be a very — and that’s the basic model. You see our working capital requirement in all our export orders is not a very substantial amount. It keeps phased-out and we get something advance also from all the orders, there are milestones for getting some advance.
So the working capital requirement is not a very huge amount in any of these export orders.
Operator
Thank you. MR. Mehta, please rejoin the queue for more questions. Next question comes from the line of Vishal Periwal with Antique Stock Broking. Please go-ahead.
Vishal Periwal
Yes, sir. Just a follow-up. I think you did mention like in terms of our consol level growth, we are looking 20 odd percent. So which is like an incremental revenue of INR500 odd crores. And exports, then you mentioned segment-wise 40% Execution that itself can give us INR500 odd crores kind of revenue. But then like turnkey and other projects, there will be a bit of growth. So I think is it fair to say probably the growth will be much more than 20-odd percent in FY ’26.
Rahul Mithal
Vishal, I’m glad that you’re doing numbers back-of-the-envelope calculation very fast, catching on to the figures, which I’m saying. But as I said 20% is the minimum that we hope, as you can see a numbers are in front of you and I’m being very transparent in quoting and the numbers and our aspiration also.
But I think it’s fair enough to say that because this FY has been a hit because of the reasons and the breakup that I gave you already INR200 crores. So in nine months, so I think building up on this base, we see at least a 20% growth in the coming FY. But as you see, if you analyze the numbers and the order book, 20% at least is definitely doable.
Vishal Periwal
Okay. And similarly, sir, for the margins, again, like the shift will be there for turnkey and export. So consol level margins can be little lower. Although the growth can be there at the top-line, but margins can be little lower, that’s probably what I could gather. Is that fair to say that?
Rahul Mithal
So you see the consol level EBITDA margins of 20 odd percent and the PAT margins of about 15% 16-odd percent while in a particular quarter moving forward because of the blend of revenue may see some variation above this band, but averaged out over six months or an annual basis, the considering that we’ve also got huge number of consultancy orders, both domestic and a good, very good international orders and hopeful to get some more international orders, we feel that we should be on an overall averaged out basis be able to maintain this range of about consol 20% odd EBITDA margins and PAT margins about, 15% 16%.
Operator
Thank you. MR. Pariwal, please rejourn the queue for more questions. A reminder to all the participants that you may press star and one to ask a question. Next question comes from the line of Parimal Mhthani with Credential Investments. Please go-ahead.
Parimal Mithani
Sir, thanks for the opportunity. Sir, I just wanted to know going ahead, will we balancing the consultancy orders more compared to turnkey in terms of maintaining margin?
Rahul Mithal
So I’m sorry, your voice cracked, Parimal. Can you repeat?
Parimal Mithani
Going ahead in terms of order book, basically consultancy will be more part or the turnkey will be balancing both equally.
Rahul Mithal
So you see, in terms of order size because turnkey value of orders, they are much big-ticket orders vis-a-vis the consultancy orders, right? So even now today, but still because we are still getting large number of consultancy orders, one order a day overall, 110 plus orders in this quarter, a large number of good consultancy orders also.
So INR8,000 crore order book also in-spite of turnkey being big-ticket orders has 2,800 consultancy and 3,600 turnkey. So while they can’t be compared in terms of value. But yes, the focus of getting more-and-more because our strength is consultancy, even the turnkey orders which we are getting. We are not really a construction company. They are primarily consultancy design orders where the revenue is flowing through our balance sheet.
So we are not really a construction company. That’s very clear, which I’ve been saying in my previous interaction. We are a pure consultancy company and in the turnkey part of the orders are those orders which where the revenue flows through our balance sheet. But our strength is consultancy design, project management consultancy. So we will continue to focus on getting more-and-more consultancy orders and their increased execution so that the blended margin still remain at the appreciable level which I brought out.
Parimal Mithani
Okay, sir. Thank you, sir. Thank you. And all the best.
Rahul Mithal
Thank you.
Operator
Thank you. A reminder to all the participants that you must press star and one to ask a question. Once again, a reminder to all the participants that you may press star and 1 to ask a question. Next question comes from the line of Viraj with Jupit Financial. Please go-ahead.
Viraj
Yes, sir, I want some color on the export like going-forward, what kind of the order size we’ll be looking at and per quarter kind of export order, if you can give some guidance on that. And why you’ve been — so much delay — the delay in getting export order is because of the geopolitical reasons or some other issues? Two questions — just one question I have.
Rahul Mithal
So second part of your question, you see, it’s not — we have now started getting export orders after a gap of three, four years. Last four quarters, every quarter, we have got an export order. And this is primarily because earlier for last four, five decades, we used to get export orders on the line-of-credit opportunities, which were EUIs floated by the exhib bank for the line-of-credit opportunities.
With those opportunities completely finishing or becoming very minimal, all these orders which we have got are on global tenders on orders, on opportunities which have been funded by the client countries or multi multinational, multilateral banks. So these are the kind of opportunities, which as I said, we have bid also in various other tenders in various geographies, whether it is Africa, Southeast Asia, Latin-America.
So we will aim aspire to at least continue this trend in the coming quarters also of getting at least one order of an export order in one — in every quarter. The size of these orders obviously can vary as you’ve seen in the INR1,300 crore order book. So they could vary anything from about INR40 crore INR50 crores to anything about INR200 crore to INR300 crores or maybe more.
But I mean, because we are bidding in all various opportunities, it’s very difficult to give one median size of an order. They could be as low as INR50 odd crores and could go up to INR00 crores INR500 crores also.
Viraj
And sir, what would be our margins in the export business would be new normal margins would be since we are on competition basis, so would it be around like what kind of margins we should be looking at
Rahul Mithal
Sir, the traditionally export revenue was in the range of about 20 odd percent margins in the line-of-credit orders. These are all global competitive tenders and they would have different margins for different bids, definitely substantially lower from the 20-odd percent. And as the revenue flows in from different orders in a particular quarter, the blended margins on an export stream of revenue would work-out depending on the percentage of contribution of the various orders, but definitely much, much lower than the 20-odd percent and would be in the range of about 10%, 10 odd percent broadly.
Viraj
That is net margins, right, 10%
Rahul Mithal
Yes. The EBITDA margins.
Viraj
EBITDA margin is 10%. Okay. Okay.
Rahul Mithal
Yeah.
Viraj
Okay. Thank you. And all the best.
Rahul Mithal
Thank you.
Operator
Thank you. Next question comes from the line of Vinam Rahirawat with JM Financial. Please go-ahead.
Vinamra Hirawat
So just slightly more technical question than the two orders — export orders that we have. When will the two orders be fulfilled in terms of are they both like three to four years tenders where you know all the order will be fulfilled after like FY ’29, FY ’30. So just some color on that?
Rahul Mithal
No, not really, not such a long timeframe. You see, as far as the coach order is concerned, the Bangladesh Railway is in a huge hurry to get these coaches. They are in extreme shortage of coaches and except for this delay of few months, they were in fact wanting about 40-odd coaches in this FY only which is slided by about six-odd months.
So I definitely see even the locomotives order from Mozambi Crailways, that definitely is moving very fast and will start generating revenue very soon in the coming FY. So with the way things are moving, these two bulk orders which are there part of the INR1,300 crores will definitely not spill-over to more than a maximum two FYs. That’s the max to my assessment.
Vinamra Hirawat
Okay. So both INR1,200 crore INR1,300 crores should be put in two financial years?
Rahul Mithal
Yes definitely for sure.
Vinamra Hirawat
Okay thank you
Operator
Please give me a moment. Okay. As there are no further questions, I would like to hand the call over to the management for closing comments.
Rahul Mithal
Thank you. So This is a reiteration of our two-pronged focus strategy, which we are very clearly working on right from the beginning of this FY, understanding the overall environment and the change dynamics, the two, four-pronged focus strategy of improved execution and aggressive order inflows is what Q3 results show. And this is what we assure you that Q4 would move — continue to move-in that direction. And as I said, definitely on this solid base that we have built-up due to our team’s efforts, we see FY ’25, ’26 building up on this platform by generating both a good top-line and a good growth on the bottom-line. Thank you. Thank you very much.
Operator
Thank you all for being a part of the conference call. If you need any further information or classification, please email at. Ladies and gentlemen, this concludes your conference for today. Thank you