Sealmatic India Ltd (BSE: 543782) Q4 2025 Earnings Call dated Jun. 09, 2025
Corporate Participants:
Unidentified Speaker
Umar A K Balwa — Managing Director
Ratan Kandare — Chief Financial Officer
Analysts:
Unidentified Participant
Arnab Bhattacharjee — Analyst
S. Venkatesh — Analyst
Hardik Gandhi — Analyst
Shantanu Naik — Analyst
Vikash Agarwal — Analyst
Bharat Chheda — Analyst
Santesh Karunakaran — Analyst
Presentation:
operator
Ladies and Gentlemen, good day and welcome to the Sealmatic India Limited FY 202425 yearly earnings conference call for the period 1 April 2024 to 31 March 2025. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touch tone telephone. Please note that this conference is being recorded Statutory Notice all content on this earnings call is for informational purposes of a general nature only and does not address any circumstances of any particular individual or entity.
Do not constitute any such information or material as legal, tax, investment, financial, professional or any other advice. Content on this earnings call does not represent or constitute any solicitation, inducement, recommendation, endorsement or offer by sealmatic. Any information, materials, statements and or data set out herein is subject to change anytime without notice and as such, no reliance must be placed on fairness, accuracy, completeness or correctness of any information and materials contained on this earnings goal. I now hand the conference over to Mr. Omar AK Balwa, Managing Director of Sealmatic India Ltd. Thank you and over to you sir.
Umar A K Balwa — Managing Director
Thank you Ryan for this introduction. Good evening and a very warm welcome, ladies and gentlemen to this fifth earnings conference call of today. Before I begin with the formal address, I take this opportunity to express my heartfelt appreciation to all of you for taking the time out of your busy schedules and accepting our invite and to be a part of this call. I would also like to express our gratitude towards our shareholders and the keen interest expressed by investors and the analyst community in our company Steelmatic. As I have already briefed over the previous four earning calls about the company and our journey in the business of mechanical seals and hence there’s a lot of data available on the BSC side and also on our social media handles such as YouTube, LinkedIn, Facebook, Instagram, etc.
I will not get into specifics and make this introduction as brief as possible which will allow us to take as many questions as possible. A few highlights over here. Steelmatics succeeded in increasing its turnover by around 42% on a yearly basis as compared to FY24. PBT increased by 57%, that increased by 61% and EPS increased by 61% as compared to the previous year. The company’s net worth also increased by 17% and it stands at 102 crores. All this is testimony to the fact that demand for Sematic products is very strong and is being driven by markets in India, Europe, Middle East, North America and other regions globally.
Outlook for the financial year 2025 for the financial year 2025, Filmmatic has achieved a year on year organic order intake growth of 25% which shall also lead to seamless operation which will announce profitability and increase in the top line. Our continuous investment into research and development drives our commitment to keep evolving our capabilities as a ceiling technology leader. Notable developments in the Middle East, Europe, Russia and USA we are currently expanding our footprints to various OEMs and end users. Our joint venture in UAE Abu Dhabi Sealtech LLC will provide world class support and services for mechanical skill addressing the needs of major customers like Adnoc, OEMs like KSB, Sulzer, Sundine, Ibarra, Rohrpain and host of other EPCs such as Mary Techmont, Technimont, Worley Wool Group and many other important customers.
Thus targeting a significant portion of the USD 60 million market mechanical sales in the UAE. The service center shall be up and running by July end this year. Similar activities which are in the stage of initial investigation are now getting momentum being conducted in Oman, Kuwait and Qatar for the Middle east region. Our state of the art Service center which is similar to Abu Dhabi is under discussion currently in Oman, Kuwait and Qatar. Russia has been a good opportunity and a lucrative market for us. We are putting a major thrust over there. We have participated on a continuous basis in exhibitions until now and then.
In the period of 12 months we have participated in two exhibitions with great success in the recently participated exhibition in April 2025. Thus our focus in Russia is in a strategic manner. Other important exhibitions that we are participating in the near future are the Defense Expo in Chennai in September 2025, Pump Symposium in USA in Houston in September 2025, ROTIC in UAE in September 2020, Weftech in Chicago USA in September 225 and many other important exhibitions. Our drive towards penetration in various markets is relentless and we are committed to establishing still meeting as a global player or rather I would say that we already are globally recognized.
Our global markets export TO More than 63 countries have demonstrated a longevity along with year on year growth and they will remain essential as new markets will emerge in the future. Our long term strategy we will continue to invest for particularly demanding applications in the API 682 oil and gas, nuclear, marine and other high pressure, temperature and speed Application in this manner will create long lasting values for our shareholders and employees as a result of which we are one of the chosen companies in the field of mechanical steel for critical applications in nuclear, marine power plants, oil and gas, etc.
We have undertaken various CSR initiatives for development of society including education, health care, destitute care, women empowerment, etc. I would like to extend great appreciation and thanks to all our shareholders for all their support and to our employees, customers and partners without whom none of our achievements would be possible. I will now hand it over to Ratan who is our CFO to share vital details about the year that went by. Hand over to Ratan.
Ratan Kandare — Chief Financial Officer
Good evening ladies and gentlemen, dear investor and shareholder. We are delighted to present the financial result of FY2025 which showcased strong and healthy performance on an annual basis.
Our sales turnover in FY25 stood at 101 crore which is an increase by 42.10% as compared to FY24 where the sales turnover was 71 crore. We have achieved the profit before tax of 21.27 crores during the FY 2025. Which is a 20% of our total turnover. These profit earned are in line with. The profit percentage earned in 2000 master 2024. We have achieved the EBITA of 24.84 crore. During the FY25 which is a 24.18%. Of total revenue, our EBITDA is increased. By 11 percentage compared to previous year’s EBITDA of 21.77%.
Umar A K Balwa — Managing Director
Thank you. Yeah, Ryan. We are now open to questions.
Questions and Answers:
operator
Thank you. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Arnab Bhattachary, an investor. Please go ahead.
Arnab Bhattacharjee
Hi sir, am I audible? Can you hear me?
Umar A K Balwa
Yes please.
Arnab Bhattacharjee
Sir, Is it possible to provide the breakup of the numbers between, you know, what was, you know, new seats which were given out versus you know, us, you know, like redoing some seals which are not working. Is it possible for you to provide the breakdown of the number?
Umar A K Balwa
I’m sorry
Arnab Bhattacharjee
replacement, replacement versus new.
Umar A K Balwa
I can give a breakup on OEMs versus end user business in.
Umar A K Balwa
Yes. So if you look at the turnover was 101 crore out of which 38% was for domestic sales and 62% was for export sales. So now out of this export Sales if you look at the percentage, how they were divided. So if you look at Europe was constituting 42%, USA was 16%, South America was 3%, Middle east was 4%. Russia, we saw a great jump over there was 17%. At the rest of the world was 19%. So that is how it looks, looks like at the moment.
Arnab Bhattacharjee
No, sir, I was not looking for the geographic split. I was looking for that. The split like the replacement versus new seals issued for that split. I was looking for because I wanted to understand how much of your revenue is recurring.
Umar A K Balwa
Yeah, and I’ve been all, you know, mentioning the last four running calls. Our majority is totally new skills at the moment. We are yet to see the commissioning and installation happening which will happen in FY 2527. Thanks.
Arnab Bhattacharjee
Thank you. The other question is I, I wanted to understand what did we share at the Defense Expo? You can give like was it really the marine seals or was it something more than we know of?
Umar A K Balwa
It’s mainly relating to marine seals because for our kind of products, marine applications are most appropriate.
Arnab Bhattacharjee
And any updates on the. So I wanted to understand one thing. Like the scenes that we make, do they work for both? Like there are currently there is like a small core kind of nuclear work which is being proposed versus, you know, the legacy nuclear, you know, fuel generators. Right, nuclear power generators. I wanted to know is there any difference and do we, you know, provide for both kind of our generation, the small core as well as the traditional nuclear power systems or our seals scatter to only one kind of, you know, nuclear power generation?
Umar A K Balwa
No, seals are universal. Whether we have those compact reactors which are in vogue nowadays and which would come up in the near future. So a seal would be employed both at a compact nuclear reactor as well as the conventional reactors that we see the world over. So the seals would be applicable. It would be universal, I would say.
Arnab Bhattacharjee
Thank you sir for answering all my questions, which at the time it was a awesome set of numbers and congratulations to you and your team and wishing you all the very best.
Umar A K Balwa
Thank you very much, Mr. Patacharji.
operator
Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and 1. The next question comes from the line of S. Venkatesh from Mainspring. Please go ahead.
S. Venkatesh
Congratulations for a good set of numbers. My question was actually about the journey ahead. You have in the past talked about a 275 crore turnover by FY28. Just wanted to know broadly considering the numbers that have been achieved, what sort of turnover you’re expecting in the current financial year and you know, over the next three years.
Umar A K Balwa
See this question has been answered many times in the past and 275 crores, I think probably I would say there would be slight disconnect. But I’ll still repeat my answer that we are looking at a growth of 15 to 20% every year, year on year. So that’s the growth that we’re looking at for the current financial year and for the years to come. Sure.
S. Venkatesh
Thank you. The second question was about your working capital. Last year you reported about 50 crores in inventories and about 25 crores of debtors. This seems to be a rather high number. Is this likely to sustain or do you think it would come down over time?
Umar A K Balwa
Probably again, you know this. Anyway, I’ll still answer them, Mr. Venkatesh. I mean the nature of the business is such that the working capital and the inventory is going to remain high till we don’t achieve that turnover of 200, you know, plus crores. At that time we’ll be able to rather, you know, amortize our inventory and would be able to employ the stocks available in a much more holistic manner at the moment. Yes, the inventory is going to be high and that’s not going to change until we don’t cross the 200 crore mark.
S. Venkatesh
Sure. Thank you. That answers my question.
Umar A K Balwa
Thank you.
operator
Thank you. The next question comes from the line of Hardik Gandhi from HPMG Shares and securities Private Limited. Please go ahead.
Hardik Gandhi
Hello sir. Am I audible?
Umar A K Balwa
Yes, please.
Hardik Gandhi
Hello sir. Congratulations on a good set of numbers. Just wanted to know two things. First, since we started our office in the in the UAE for the service and repairs of the existing seals, how is the traction there? And what, what is the revenue we generated from that?
Umar A K Balwa
We have yet to start our operations in Abu Dhabi. So that would be up and running in July 2025. So there are no numbers to give at the moment.
Hardik Gandhi
Understood. And so given our capacity expansion, what is the P like? What is the new added capacity to our existing one?
Umar A K Balwa
It is 65% already answered many times over the previous running call. So it is 65% capacity expansion in terms of production expansion.
Hardik Gandhi
Understood. And how much are we expecting to like? Till when are we expecting expecting it to ramp up to a good 100 utilization or at least 70, 80%.
Umar A K Balwa
I think I’ll answer it once again. The new unit which has come up in common will add 65% to the production capacity. So that is part one of that question. And the part two of that question is that we’ll Never be able to utilize 100 of or 90 of our capacity. Because the nature of the product research is not a line item, it’s a limit item. So our maximum utilization of any capacity would be a good 80%.
Hardik Gandhi
Correct. And by when are we expecting, given the inflow of the orders and the demand.
Umar A K Balwa
And by this calendar year end December 2025, we would be seeing a peak in our capacities.
Hardik Gandhi
Understood. And are we seeing any supply chain issues given our raw material is imported? So are we seeing any problems on that?
Umar A K Balwa
I mean, not in the moment. And despite the challenging years that went by and the geopolitical situation that we are all witnessing, nothing has changed for us. So our supply chain is intact and I don’t see any, any kind of disruption happening in that direction.
Hardik Gandhi
Okay. Do we see any reasons why there should be a pressure on our margin given that we have stabilized around 20, 22% EBITDA?
Umar A K Balwa
There would be be a good year. When you talk about FY25, that was a good year. And you know, I wish every year would be like FY25, there would be a pressure on margin. It all depends, you know, how much new projects that we want to take while biding money on getting those projects in the kitty over here. So, you know, there would be pressure on the margin till we don’t even see that period of where we get the replacement business of already supplied seals via OEMs and projects. So I would be saying that yes, for the next two years we will see oppression on the margin.
Then we try and, you know, make a nice mix of business where we, we bleed at the same time. We don’t, you know, erode our margin. So that’s, that’s the, you know, goal that we want to achieve. And probably this year we could demonstrate that FY25, we saw good margins, good turnover and everything was, you know, more than what we expected.
Hardik Gandhi
Understood, Understood. So going forward our strategy would be to maintain a similar line of margin. Or do you think further, given that you balance this year, do you think that there, like in the next two years there would be further reduction or this could be a conservative margin. Given how you are balancing the situation.
Umar A K Balwa
Right now, I would be happy to maintain a similar margin as FY25. But if something really interesting comes and a good project which is happening maybe in the Middle east or in India, and which I feel that there is going to be long term valuation for the company, I would definitely sacrifice a margin on that business and make a long term investment for the company and a long term value for our business. I would definitely, I mean look at.
Hardik Gandhi
It and do we see any big opportunities in the nuclear sector as a whole, like given there is a strong government push on that side.
Umar A K Balwa
As we look at the power generating capacity worldwide. So you know, all the thermal power plants which were active in Europe were all shut down because of environmental constraints and all of the matter. But now they are coming back, regenerating their own power especially I see a lot of impetus in Germany, in France where they are again talking about smaller reactors for nuclear power plants. Similar activity is happening here in India when we talk about expansion in the nuclear power sector. So we are well placed and I see a great demand. Of course it’s a very bureaucratic, slow moving, you know, industry.
But once we are inside that business, you are going to remain in that business for, for many, many decades to come. So that’s happening over here in India, it’s happening in France, it’s happening in Germany. So there’s a lot of movement. Also surprisingly, the UAE government has, you know, installed up brand new or department for only nuclear energy. So there’s a lot of traction happening in that direction.
Hardik Gandhi
Understood, sir. And just last question from my side on the demand side, do you see any reduction in new projects in domestic as well as international, Any, any kind of slowdown in your segment where your seals are required rather than the.
Umar A K Balwa
Sort of. I didn’t have you finished your question so I’ll ask.
Hardik Gandhi
Yeah, yeah, yeah, yeah.
Umar A K Balwa
Sorry I saw you interrupted. So at the moment there is a slight slack in the Indian project industry but there’s a great upsurge in, in Middle east, especially in uae, in Oman, in Qatar and Kuwait and of course Saudi Arabia in a different planet altogether. So we see a great, great demand over there. Just to give you a small example that we got our ADNOC approval last year in, in February and today in, in May 2025, that was the last count we made. We have done almost 125 palms. So these pumps will now go to ADNOC in Abu Dhabi and we’ll have a recurring business, highly profitable business we see there.
So similar traction we are seeing in Qatar, in Oman, in Kuwait and Saudi.
Hardik Gandhi
Arabia and in the replacement business we see we are still targeting FY27 as the start of the year where you can expect some replacement demand to come or the good chunk should start from there. On will it be, Will it be. And again, sorry to interrupt. Will it be a continuous your on your replacement or will it. Because since we’ve invested year on year in different companies and different plants.
Umar A K Balwa
Yeah, it would be year on year. Normally a typical life cycle of a mechanical seal is 12 to 16 months. So in 16 months time it will come come up for replacement.
Hardik Gandhi
Okay. And can we quantify any expected replacement demand or something like that or is it too early?
Umar A K Balwa
You know, I wish I could, but if I would try and give you a ballpark figure, I think that would be unwise on my part. So I would wait for a while because not, not for any other reason. The only, you know, hurdle or a challenge that we see is the whole plant getting, you know, commissioned. And for a huge plant, there are commissioning issues, there are, you know, some kind of challenges. So, you know, delays are inevitable. There’s a, you know, nature of this business. So I would, I would rather wait until you know, June or next year to make a proper, you know, then.
Hardik Gandhi
But when the replacement demand would come, will our revenue, will, can we expect our revenue be split between 30 replacement revenue and 70 new sales or will it be, will it, will the replacement demand overwhelm our existing new seal sales? And will it be like 50, 50 or something like that?
Umar A K Balwa
No, that would not happen in 2027. I wish it was, you know, something that would happen. But in 2027, no, that’s when we would start our business in the end is about.
Hardik Gandhi
Understood. So we can expect 10 to 10 to 20 of our sales to be 10.
Umar A K Balwa
10 to 15 I would say would be a, you know.
Hardik Gandhi
Okay. Understood. Understood. Yeah. Thank you so much. All the best, sir, for the future.
operator
Thank you. The next question comes from the line of Shantanu Nayak, an investor. Please go ahead.
Shantanu Naik
Congratulations on good set of members and achieving a turnover milestone. Yeah. So, so my first question is about the service revenue. So, so what percentage of total turnover are we expecting to derive from service revenue in current financial year?
Umar A K Balwa
None.
Shantanu Naik
Okay. And, and, and, and how, and in, and is there any expectation in next two years or like three years service revenue start?
Umar A K Balwa
I just answered Hardik Gandhi on this question. So the revenue for spare part business would start FY27.
Shantanu Naik
Okay. Okay. Sure thing. Sure thing. That’s it. Once again, good luck, sir. Thank you.
operator
Thank you. We take the next question from the line of Vikash Agarwal, an investor. Please go ahead.
Vikash Agarwal
Hello. Good afternoon, sir. Very good set of numbers. I would just like to ask one question that given that you said earlier that our capacity will keep out in December 2025. So what could I know? There are various types of fields and it’s like difficult to Estimate. But can you just give us a ballpark figure what would be the peak revenue we can expect from that? And is there any further TPEX plan for capacity expansion? I think we discussed that you are targeting a 15 to 20% growth year on year. So given that our capacity would peak out in December 2025 so can we expect a CAPEX plan coming up and if.
Yes, and how would you look to fund it?
Umar A K Balwa
I’m so sorry, you know we broke in between. Mr. Agarwal, if you don’t mind, can you please repeat question please?
Vikash Agarwal
Yeah, we just discussed that our capacity is going to peak out in December 2025. So I would just like a ballpark figure. Given that we have varied kind of fields and we cannot give a linear estimation but a ballpark figure, what is the peak revenue we can rely from it. And second part of it is yes, then we are estimating we are targeting a year on year growth of 15 to 20%. So is there a capex we would like to plan in near future and if yes, how would we like to fund it?
Umar A K Balwa
The first part of the question is that we expect a peak of our capacities in December 2025. So that would, you know, that unit in common handles voluminous business which you don’t see a turnover and a profit on those items because those are essential for our mechanical seals to go into projects. So those are bulky items and these items don’t necessarily get us any great revenue, rather they are a bleed or a drain on the top line as well as the bottom line. The only reason that we need to have is a compulsion by all the EPCs to have those items to be supplied along with mechanical seal.
So when we talk about some kind of a figure that is not going to add to the top line always I’ve mentioned that it is going to help us increase our production capacity by 65%. That does not necessarily mean that it would increase the turnover by 65%. Our turnover will only increase from FY27. When we see those replacement markets, when we see our own seal coming for replacement, that’s when we charge our, you know, rightful price and get the money for what we invested over the years. So that’s one part of the question. The second part of the question, yes, there would be CapEx as the company would be progressing and growing, there would be Capex here and there.
But the majority of Capex has been taken care of and I don’t see much big investment at the moment happening.
Vikash Agarwal
So can I ask one more question?
Umar A K Balwa
Yes, Please.
Vikash Agarwal
Yeah, last year we see, I think we saw you a good amount of marketing expense where you explained that you had to attend a lot of exhibitions which cost a lot and some of the exhibitions are held once or twice or thrice in a year. So sorry, three in once in three years. So do we see any further marketing expense coming up in FY26 such with that, will we drag the bottom line down?
Umar A K Balwa
Mr. As we speak we are going to participate in 12 exhibitions from date until the next February. So our investment into market is continuous. We are investing a lot of our time, money and energy in the Middle east where we see great amount of traction. We’re also Investing in the USA, in the US itself, we are participating in three exhibitions right from September until February 2026 and similar efforts are also being made in the Middle east where we are participating in an exhibition called Adipack, which is the largest exhibition in the Middle East. We are participating in Rotic.
Again, that’s a very good exhibition for our kind of products. So to answer the question, yes, we are going to invest into, into more and more marketing, more and more visibility, more and more engagement with customers whom we cannot reach individually but in an exhibition, yes, we are able to connect with many users in those two or three days of our participation in any exhibition. So I don’t see this tapering out any soon. I would, I would be happy to continue this at least for next two years.
Vikash Agarwal
Sir, I just like to, I, I want to understand as in we are talking about a year on year growth of around 15 to 20% and this year our top line growth was more than 40%. So what drove that growth? And last year there was, we had, we maintained a margin of like operating under 20%. This year we had a operating 24%. So and as one of the partners speaking and you replied that this was the best of the margins and we cannot, we would like to maintain it, but we can and cannot also. So what happened this year which we, because of which we got this growth.
Umar A K Balwa
Can you repeat the last line please?
Vikash Agarwal
The margin part. You said that this is one of the best. FY25 margin was one of the best margin that we had and you would like to maintain it in future.
Umar A K Balwa
So I think that would be, yeah, that would be incorrect because of course when you talk about the number in absolute terms, this is the highest number that we have got. But in terms of percentage I would say I don’t remember the year. Correct. But we have, we also have had the 27%.
Vikash Agarwal
Yeah, yeah, it was in March. It was in 2022. 2021.
Umar A K Balwa
Yeah. So it depends, you know, what is the nature of business that you’re engaging yourself into when you talk about 2023? That was purely a business of distribution and we had not engaged ourselves with the OEMs and projects. But if really you want to be a good player and a player of recognition in this business, you need to engage yourselves with OEMs and project business. So I would be happy to maintain the margin that we have got in FY25. But if I have to sacrifice my margin, that was my caveat on that answer. If I have to sacrifice for the reason of taking a big project somewhere, somewhere in the Middle east or in India, I would, I would be happy to do so because that would be creating a long term value for the company.
Vikash Agarwal
But if we are going for a bigger, won’t our revenue also grow?
Umar A K Balwa
Sorry I. Can you repeat the question?
Vikash Agarwal
If we are going for a bigger project, won’t the revenue also grow as in we are targeting?
Umar A K Balwa
No, but I think probably, you know, you have missed on all the four running calls. Our nature of business is, you know, when we invest into project, it is practically below cost.
Vikash Agarwal
Yeah, that is that.
Umar A K Balwa
Yeah.
Vikash Agarwal
So it will contribute to the margin.
Umar A K Balwa
It’s a double edged sword that you’re playing with or fighting with that on the one hand you are investing so much of money your top line doesn’t get the, you know, respect it needs and also it drains your bottom line as well. So you know, when you’re talking about project is a highly, highly complicated business, you know, you need to be really, really vigilant and careful of how much you want to invest, where you want to invest, which, which are the project. So you know, considering all those aspects, we have decided that our area of focus of course is India and, and the Middle east at the time being because geographically it is easier to reach out and also culturally it is easier to do business in Middle east and in India because we deal with Indians, Indian experts in the Middle East.
So I would be happy to maintain the current margin, but if I have to sacrifice, I would happily do so.
Vikash Agarwal
But if you’re dealing with a project, when we get a replacement business starting in FY27, the margins in those business also would be lower or it would be higher.
Umar A K Balwa
Of course, higher. Now why would you invest into a project if you are not able to recover your margins in the future business? So that definitely would be higher. Like if you’re. It’s like your automobile, you buy a Automobile, which is the capital equipment, but your servicing cost and your spare parts are, you know, hitting the ceiling now.
Vikash Agarwal
Yes, yes. So what kind of margin can we expect from the replacement business?
Umar A K Balwa
I’m. I am not into astrology, so I’ll not be able to answer that question until. Until. Yeah.
Vikash Agarwal
Thank you. Thank you. Thank you, thank you.
operator
Thank you. The next question comes from the line of Paras Chera from Purple One Vertex Ventures. Please go ahead.
Bharat Chheda
Hello, sir. I am new to our company and I unfortunately joined also a little bit late on the call, but just, you know, what I gathered from a couple of conversations. We are close to peak capacity for our facility in the next six months or so. Right. And there is an aggressive marketing campaign that we are probably trying to run across the globe. So I just wanted to understand this 15, 20% growth, you know, where can it come from? And you know, of course marketing campaigns are essential if you’ve got the capacity. So that one question I have not understood.
How does it tie with the current capacity constraint that we might have in the next couple of years? Because unless we, you know, new capacities, that’s a different thing. And secondly also I wanted to understand, sir, what is the reason of this huge inventory in terms of inventory days that is there? Of course, I don’t necessarily understand that nature of the business. So I just thought I’ll sort of get it from you, sir.
Umar A K Balwa
Mr. Cheta, this has been a question, you know, I’ve answered so many times. So you know, it’s the nature of the business and you know, please excuse me for not answering this question now. I’ve answered it many times. So can we move on to the next question, please?
Bharat Chheda
Yeah. No, so the first question, if you can answer, please, revenue guidance that you’ve mentioned, 15, 20% and the capacity I heard on the call as of I just, you know, got in late.
Umar A K Balwa
Let us take one question at a time.
Bharat Chheda
Yeah, there’s only one question, sir. I’m just trying to collect, connect the two dots. There’s only one question. There is a 15, 20% expectation of revenue growth, whereas the capacity is also peaking. Right. And marketing is going to be aggressive is what I’ve heard these three things.
Umar A K Balwa
Yes.
Bharat Chheda
Right. So I mean, what is the reason of that marketing campaign when the capacity is limited? That’s question one.
Umar A K Balwa
Let us pause over here. So I mean when we talk about peak, is that our will achieve our peak capacities, not in terms of utilization. When I say peak capacity, is that when we’ll have alignment of all the equipment and we’ll have a trained manpower to do this business. So by, by this year end we’ll be all ready to unleash the additional 65% capacity. It may not necessarily mean that I’m going to utilize that entire 67 capacity in December 2025. So I think there was a kind of a misunderstanding. Let me clarify that now. The second question is that from where do we get the business? Of course we are going to get the business.
And that’s been happening over the last 12 years that our company has increased its business by 15 to 20% year on year and we are putting all these efforts in the market. And then also if you look at the journey of the company in the last four years time, we have been able to rope in many good companies globally out of Europe. Also the counterparts in India and those businesses are growing. So when we talk about Europe, we had a distribution model in our, you know, earlier days. Now we are now further engaging ourselves with the OEMs in Europe and we see a lot of good traction over there, a lot of good response over there.
So that business will come. We’re doing many projects over here. So when we say our business is going to increase until, until February last year I did not have approval from say ADNOC or Covid oil company. So these two approvals itself is opening floodgates for us. So that will also generate additional businesses for us which was not there for us. Because unless and until you are not appearing in the approved vendor list of say ADNOC or a SABIK or a KOC or a, or a PDO Oman or a Qatar Energy, you won’t get those inquiries.
How much ever you may qualify, but if you don’t appear in the avl, you don’t get those inquiries. So now we are appearing in adnoc, we are appearing in Koch, we are appearing in Oman. So that itself is going to purely give us growth in our business.
Bharat Chheda
Right. So just two queries to that. One is now that’s a good thing that I heard. You know, you appeared on, you know, one of the prominent client list, at least now it seems. So now if you’ve added customers, are you looking at significantly expanding capacity to meet that incremental demand?
Umar A K Balwa
You know, Mr. Chetta, expansion of capacity has never been an issue for a company like Sealmatic. It is just renting out additional space and putting equipment. The, the challenge over here is to get business. The challenge over here is to, you know, penetrate with customers which are, you know, multinational, which are multi billion dollar companies. They have their Own set of, you know, approvals. Sometimes it takes years and years before you get your final approval. So that’s the challenge. To increase capacity has never been a challenge. I can replicate what we have today both in Mira Road and common in the next six or eight months time if it comes to that.
So expansion or, or a capacity or constraint is not a problem for us. The challenge is to get business understood.
Bharat Chheda
Understood. So basically it demand led capacity can come in in a short period of time is what I understand.
Umar A K Balwa
Absolutely understood.
Bharat Chheda
And generally sir, of course I’ve heard you know, 15, 20 potential growth guidance for the next couple of years. But I mean in general do you have a sort of a vision, you know, which you’re working with three, five years down the line. I mean any particular number that you’re looking at in terms of internal targets etc.
Umar A K Balwa
See on a model middle term say by 2028, 2029, I mean I would be happy to cross 225 crores.
Bharat Chheda
Okay, thank you so much.
Umar A K Balwa
Pleasure.
operator
Thank you. The next question comes from the line of Santesh Karunakaran from Financial Finesse. Please go ahead.
Santesh Karunakaran
Hello sir, good afternoon and congratulations for the excellent set of numbers. I have one question related to that 15 percentage new market. You know we said we will be able to possibly we are targeting 15 percentage of the new seam in the market. So how are we doing on that parlance?
Umar A K Balwa
Mr. Karnakaran? I’m not able to get the question. Can you, can you please. Hello, can you please rephrase the question?
Santesh Karunakaran
Yeah. In the previous conference calls you mentioned that you know we are targeting 15 percentage of the new market which is coming up in India.
Umar A K Balwa
Yes, so.
Santesh Karunakaran
So how are we doing on that? Are we able to meet that target line?
Umar A K Balwa
Yes, absolutely. What I, I’ll again reiterate for everybody who’s on the call that what I mentioned earlier and I’ll, I’ll reiterate now that any new pump in the API segment which is oil and gas, refinery, petrochemical and power plants, any new form being manufactured will have a Sealmatic mechanical seal fitted in that form. And in that market we are targeting a share of 15%.
Santesh Karunakaran
Okay, so we are able to meet that or you know, able to move.
Umar A K Balwa
Okay, absolutely, yes.
Santesh Karunakaran
The second part question was, you know, see you have already mentioned that Seismatic got into the approved vendor list for many of those big players. Is our turnover a challenge for us to go for the quotes or are we able to you know, go ahead and then give our quotations?
Umar A K Balwa
There is no challenge as such, when you are doing projects, the only challenge is that how much you want to train, how much money you want to drain on a particular project. So you need to be careful. And that is why I said, you know, if money was available and if somebody gave me 100 crores and, and would just say that I will not ask any question, I would definitely take 60% of the market because you need to bleed on those, on the new business, on the projects. So there is no constraint, there is no challenge techno commercially we are qualified.
Application engineering wise, we are one of the best globally, I would rather say, not only in India globally and we are well placed and we are the preferred vendor for mechanical seals with all the OEMs and projects. And I’m very proud to say that the ecosystem of mechanical seal cannot function, I’ll repeat myself, cannot function without Sealmatic. So any new project coming up, where I am qualified and where I am appearing on the, on the data sheet, the inquiry will come to me and without our quotation the OEM or the project company will not finalize that order.
Santesh Karunakaran
Excellent.
Umar A K Balwa
From nowhere we have come to a stage where without a quotation from Filmatic, nothing will be finalized. That is where we are.
Santesh Karunakaran
Okay, okay. And also you mentioned that, you know, while we sell the initial fee, you know, maybe we are not taking too much profit on that. Maybe we are, you know, take suffering a slight loss there. So that could be one reason why we may not be trying to sell so many in the, you know, early days. Right. So we really want the OM to kick in and then, you know, bring in the profit along with the new orders. Is that the right understanding?
Umar A K Balwa
Yeah, that’s correct, Mr. K.
Santesh Karunakaran
Okay, the last question, you know, you have a tie up or a collaborate, you know, collaboration in ussr. Sorry, yeah, Russia. So are we taking up the oil there or are we only supplying the.
Umar A K Balwa
Fields there in Russia? Yeah, yeah, in Russia we are supplying to various Russian oil and gas companies or directly via agents in, in Russia.
Santesh Karunakaran
So the oil also will come to us, right, at some point of time.
Umar A K Balwa
The repeat business. Yes, yeah, he’ll always come to us.
Santesh Karunakaran
Okay, okay, thank you. That’s all from my side.
Umar A K Balwa
My pleasure. Pleasure, pleasure.
operator
Thank you. The next question comes from the line of Hardik Gandhi from HPMG Shares and securities Private Limited. Please go ahead.
Hardik Gandhi
Hello sir. Thank you for taking the question again. Just one small thing. I remembered that we had a fundraising which was cancelled. Right. So are we seeing, given that there’s a recovery in the market, are we willing to raise funds again or Are we very comfortable in our cash, cash position and future planning?
Umar A K Balwa
I think on a lighter note I’ll just answer the question. The right time to invest in Filmatic was in, you know, March, April where the share prices for all the companies were down and I was hoping that somebody would come by the way. So I mean of course we are looking at investment, we are looking at preferential issues. I mean that it’s is there in the mind. So I would not say no to that.
Hardik Gandhi
But, but the, the requirement is for what reason? Just wanted to know that if in case you raise funds, the funds will be used for what exactly?
Umar A K Balwa
When money is there now you find ways and ideas to deploy them. So there are many interesting, you know, ideas in the mind at the moment. So if money is available, definitely I would like to go to usa, start something, you know, reasonably good over there outside something really good in, in Europa. So I would also heavily further invest into, in, in the Middle East. So how we have done in Abu Dhabi which is a joint venture between us and the local partner over there I would like to replicate in all the, all the GCC countries.
So I mean there are many, many ways by which you could, you know, deploy money and expand the business and get more revenue for the company and make a long term, you know, value for, for the company for years to come.
Hardik Gandhi
Understood? Understood. So all the best sir. Then I think hearing after this a lot of people will have peaked interest in the, in helping you raise the fund.
Umar A K Balwa
Thank you very much. Thank you.
Hardik Gandhi
Thank you.
operator
Thank you. We take the next question from the line of Vikash Agarwal, an investor. Please go ahead.
Vikash Agarwal
Hi sir, this is just for the apology. If we create any disturbance asking you the question after hearing all the questions answered, I really appreciate and now understood the kind of business you are into is really great. Thank you.
Umar A K Balwa
Thank you very much. Thank you. Mr.
operator
Thank you. Ladies and gentlemen, if you wish to ask a question please press star and 1. A reminder ladies and gentlemen, if you wish to ask a question please press star and 1. As there are no further questions, I will now hand the conference over to Mr. Omar AK Balwa, Managing Director of Sealmatic India Limited for closing comments.
Umar A K Balwa
Thank you so much. Ryan and I saw more than 57 participants and it is encouraging that there is keen interest in Filmatic. I thank everybody for taking out their valuable time and attending this earnings call and also asking interesting questions. And while answering those questions it also brings out a lot of conviction. We are confident that Filmmatic is on the right path. And Filmmatic will have a glorious journey as we move forward, thus making Filmmatic as one of the leading companies not only in India, but globally as well. So I thank you all for your attention.
I look forward to seeing you all on our next earnings call. Thank you so very much.
operator
Thank you. On behalf of Sealmatic India limited that concludes this conference. Thank you for joining us. And you may now disconnect your lines.