Solar Industries India Ltd (SOLARINDS) Q3 FY23 Earnings Concall Transcript

Solar Industries India Ltd (NSE: SOLARINDS) Q3 FY23 Earnings Concall dated Jan. 25, 2023

Corporate Participants:

Aanchal T. — Head of Investor Relations

Manish Nuwal — Chief Executive Officer and Managing Director

Shalinee Mandhana — Joint CFO

Suresh Menon — Executive Director

Analysts:

Amit Dixit — ICICI Securities — Analyst

Dhananjai Bagrodia — — Analyst

Puneet Kabra — Investor — Analyst

Sanjaya Satapathy — Ampersand Capital — Analyst

Aniket Mittal — SBI Mutual Fund — Analyst

Prasheel Gandhi — Nirmal Bang Institutional Equities — Analyst

Jenish Karia — Antique Stock Broking — Analyst

Presentation:

Operator

Ladies and gentlemen, good day, and welcome to Solar Industries Q3 FY ’23 Earnings Call hosted by ICICI Securities. [Operator Instructions] Please note that this conference is being recorded.

I will now hand the call over to Mr. Amit Dixit of ICICI Securities. Please go ahead.

Amit Dixit — ICICI Securities — Analyst

Yeah. Hi, good evening, everyone, and thanks for attending this call. I thank Solar Industries for giving us an opportunity to host this call. Today evening, we have with us Mr. Manish Nuwal, CEO and MD; Mr. Suresh Menon, Executive Director; Mr. Moneesh Agrawal, Joint CFO; Ms. Shalinee Mandhana, Joint CFO, and Ms. Aanchal from Investor Relations.

So without much ado, I would directly pass control to Ms. Aanchal for taking this forward. Over to you, Aanchal.

Aanchal T. — Head of Investor Relations

Thank you so much, Amit. Good evening dear investors and potential shareholders, warm meetings in the New Year. We had a fantastic year in 2022 and hope to have a similar one in 2023 and we wish the same for our investor fraternity as well. I am Aanchal and I welcome you all to the earnings call of Solar Industries India Limited to discuss quarter three earnings. Joining us today on this call is MD and CEO Mr. Manish Nuwal; Executive Director, Mr. Suresh Menon; Executive Director, Mr. Milind Deshmukh; joint CFO, Ms. Shalinee Mandhana, and Mr. Moneesh Agrawal.

Please note that certain statements concerning our future growth prospects are forward-looking statements regarding our future business expectations intended to qualify for the Safe Harbor, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements.

Now I refer to Mr. Manish Nuwal to give opening remarks on the performance of the company. Over to you, sir.

Manish Nuwal — Chief Executive Officer and Managing Director

Thank you, Aanchal. A very good evening to all the valued stakeholders. On the backdrop of strong performance by our International and Institutional businesses, the revenue for the quarter stands at INR1,812 crores, which is up by 78% year-on-year basis. And nine-month revenue stands at INR4,994 crores, up by 90% year-on-year. And the net profit is up by 109% year-on-year for the quarter and 110% year-on-year for the nine months, which stands at INR290 crores and INR591 crores respectively.

Defence revenue has crossed INR100 crores for the consecutive second quarter and progressing towards yearly turnover of around INR400 crores.

Our company has participated in various RFPs, which includes RFP for one of the Pinaka variant and RFP for drone-based working ammunitions. The defence order book now stands at INR817 crores. The company intends to offer its service for state applications, has also started showing results after the successful launch of Vikram S and static test of rocket motor made of ISRO. The company intends to expand it further in the coming years.

Amid geographical tensions, the risk of higher interest rates, economic slowdown, brings in overall volatility in the business environment. Despite of these challenges, our quarterly and nine-month revenue number gives us confidence to revise our annual growth guidance from 50% to over 55% for the FY ’23. Going forward, we will stay focused on expanding our core businesses through continuous strategic investments to enhance the stakeholders’ value.

Now I am handing over to Aanchal to take you through the summary of financials. Thank you.

Aanchal T. — Head of Investor Relations

Thank you so much sir. I’m extremely happy in presenting the numbers of a quarter where we have crossed the revenue of INR1,800 crores and profit of INR200 crores for the first time. [indecipherable] by 78% year-on-year in quarter three registering a revenue of INR1,812 crores versus INR1,018 crores. EBITDA is at INR357 crores, up by 93%. PAT is at INR219 crores, up by 109% year-on-year, demonstrating the strength of our business.

Now, let’s review the quarter results. Explosives, the domestic volume in the quarter have increased by 17%, that is 122,000 metric tonnes compared to 104,000 metric tonnes, and our realization of explosives was up by 46%. That is 71,000 tonnes versus 49,000 per tonne. As such, explosives revenue was up by 71% from INR513 crores to INR876 crores. The revenue from Initiating System was also up by 32%, that is from INR101 crores to INR133 crores.

Coming to our customer markets, revenue from CIL was up by 64% year-on-year from INR192 crores to INR315 crores. Revenue from non-CIL institutions was up by 133% year-on-year from INR147 crores to INR342 crores. Revenue from Housing and Infra was up by 41% year-on-year from INR215 crores to INR304 crores. Export and overseas revenues grew by 93% year-on-year from INR377 crores to INR729 crores. Defence revenue was up by 51% year-on-year from INR73 crores to INR107 crores.

Coming to our cost breakup, raw materials. The percent of raw material consumption is 63.55% versus 58.92%. In absolute terms, the cost grew at INR599.77 crores versus INR1,151.45 crores in the same quarter previous year. The percent of employee cost was 5.06% versus 6.62%. In absolute terms, the cost is INR91.71 crores versus INR67.39 crores. Other expenses percentage was at 12.09% versus 16.97% as a percentage of sales. In absolute terms [Indecipherable] was INR219 crores versus INR173 crores. The interest cost is almost INR25.46 crores versus INR13.41 crore, and the percentage is at 1.41% versus 1.32%.

Coming to the highlights for nine months. We registered revenue very close to INR5,000 crore, that is INR4,994 crore, which is up by 90% year-on-year. EBITDA at INR952 crores, up by 89%. PAT at INR591 crores, which is up 110% year-on-year. We have also given our investor presentation with detailed numbers.

Now we would be very happy to take any questions, comments or suggestions that you may have. Over to you, Amit.

Amit Dixit — ICICI Securities — Analyst

Yeah. Hi, Chris, can we have questions now?

Questions and Answers:

Operator

Of course sir. [Operator Instructions]. Our first question is from [Indecipherable] Research. Please go ahead.

Unidentified Participant — — Analyst

Sir, what shall be the overall PAT margins by the financial year ’23? And by going forward, what will be the revenue growth and PAT margins stated by financial year ’24 and ’25?

Shalinee Mandhana — Joint CFO

Yes, for the current year, we have given a projection of 11% to 12% of the PAT margin. And for next two years, we’ll come up with a growth guidance in our quarter four results.

Unidentified Participant — — Analyst

Okay. My next question is, what are the drivers for the value growth in the domestic explosive business? As one year ago, the rates went up INR43,962, and now it is INR71,793. So how sustainable these rates are going forward for say, next one to two years?

Shalinee Mandhana — Joint CFO

Ma’am, I’m so sorry, can you just come up with your questions little slowly? We’re just unable to hear it clearly.

Unidentified Participant — — Analyst

Okay. What are the drivers for that value growth in the domestic explosive business as one year ago rates went up INR43,962 and now it is INR71,793. So how sustainable these rates are going forward for say approx next one to two years?

Manish Nuwal — Chief Executive Officer and Managing Director

Yeah, like you have mentioned that in this quarter, our volume had increased by 17% and price increase was there by 46%. Going forward, as we are expecting that commodity prices should start to correct and accordingly our finished good prices will also get corrected. And because it is — our finished good prices are linked to the key raw material prices like ammonium nitrate and fuel oil. So at this moment, it is not a certainty that prices will fall in a particular percentage. So as we move forward, we will keep giving or revising our guidance. But as far as next few years are concerned, we believe that there will be some corrections, but it should stabilize in next one or two quarters. And based on that, we will give you the future guidance.

Operator

Thank you very much. Our next question is from [Indecipherable]. Please go ahead.

Unidentified Participant — — Analyst

Hi, yes, congratulations on a good result. So I just have one question, which is specifically relating to the order book, which you have given. So in your presentation, you just specifically mentioned that your order book at the end of the third quarter stands at 338 — sorry, INR3,389 crores, right? And so, this is a sequential decrease over the second quarter. So I’m just trying to understand how should we see this order book moves going forward and how would it exactly relate to — does it relate to your revenues going forward as well?

Shalinee Mandhana — Joint CFO

Yeah, so the order book for that the different order stands at INR817 crores, and the rest order of around INR2,572 crores is from CIL and Singareni Collieries. These orders are received for a period of two years. So for CIL, the next order will be coming in the month of October ’23. So till that period, the order is there from CIL. And so, similarly, it will come in 2024 April. So till that the orders are inclined –in line with what Singareni Collieries also. So and 1.5 year order book in Singareni Collieries are captured in this.

Unidentified Participant — — Analyst

Okay. So basically SCCL, 1.5 years orders are reflected in this INR3,300 crore number, as well as CILs one year number, right?

Shalinee Mandhana — Joint CFO

Yeah.

Unidentified Participant — — Analyst

Okay, fine. And basically a question we put at the end of that period, then again this order book again will be [Indecipherable] so to say.

Shalinee Mandhana — Joint CFO

Yeah.

Unidentified Participant — — Analyst

Hopefully better versus it. Okay, fine. And also just one more thing, I just wanted to try and understand just generally how your pricing mechanism works. Generally speaking, when there is an increase in the raw material cost, within how much of time period is there a lag or is that a immediate pass-through again in terms of other players?

Shalinee Mandhana — Joint CFO

Yeah, we have contractual obligations with the customers. So generally that lies in between one month to three months. So in rising as well as falling trend, there’s always a lag of that much period.

Unidentified Participant — — Analyst

Okay. Thank you. I’ll just go back in the queue.

Shalinee Mandhana — Joint CFO

Thank you.

Operator

Thank you very much. [Operator Instructions]. The next question is from [Indecipherable]. Please go ahead. Barja [Phonetic], your line is open, if you’d like to ask your question. My apologies, it would appear that he is not in that line at the moment. [Operator Instructions]. Our next question is from Dhananjai Bagrodia. Please go ahead.

Dhananjai Bagrodia — — Analyst

Hi sir. Congratulations on a great set of numbers. Is international volume growth significantly higher?

Shalinee Mandhana — Joint CFO

It is in line with our annual guidance. We had spoken that, the volume growth will be in the range of 15% to 20%. So the international business is in that line.

Dhananjai Bagrodia — — Analyst

Okay. So it’s in line with 15%, 20% rest of the business?

Shalinee Mandhana — Joint CFO

Yes.

Dhananjai Bagrodia — — Analyst

Okay, sure. And my follow-up question is, what would be the current inventory debtors and payables?

Shalinee Mandhana — Joint CFO

So the current working capital days are around 100.

Dhananjai Bagrodia — — Analyst

Okay. And how would you see that ending for the end of the year?

Shalinee Mandhana — Joint CFO

So we see around 90 days to 100 days of working capital cycle.

Dhananjai Bagrodia — — Analyst

Okay, okay. And one second, so current realizations are down or stable Q-on-Q, what we are seeing right now versus…

Shalinee Mandhana — Joint CFO

It’s stable Q-on-Q.

Dhananjai Bagrodia — — Analyst

Okay. And lastly sir, what will be the capex in Q3?

Shalinee Mandhana — Joint CFO

Capex, the current capex in Q3, current till nine months the capex is around INR350 crores.

Dhananjai Bagrodia — — Analyst

INR350 crores.

Shalinee Mandhana — Joint CFO

Yeah. And the annual target is around INR450 crores to INR500 crores.

Dhananjai Bagrodia — — Analyst

Okay. Annual target is INR450 crores to INR500 crores. And ma’am, what would you expect that to be for next year?

Shalinee Mandhana — Joint CFO

So this quarter, we have revised our guidance for the current year to around almost 65%. So next year will come up in quarter four results.

Operator

Thank you very much. [Operator Instructions]. Our next question is from Puneet Kabra [Phonetic], who is an investor. Please go ahead.

Puneet Kabra — Investor — Analyst

Yeah, hi. Congratulations on another great set of numbers this quarter. Question I have is, if I have to take a three year or a five year view, considering what Coal India is planning in terms of capex, mining, government capex, mining, government initiatives, private mining, and coal. So you know it all more. What kind of volume growth can we expect for this industry in the next couple of years, or three to five years? What kind of volume growth would be a reasonable number to look at?

Manish Nuwal — Chief Executive Officer and Managing Director

[Indecipherable] we have been repeating or giving our positions of growth as far as volume is concerned. We still believe that we should be able to achieve a growth of 15%, 16%, 17% year-on-year basis for next couple of years because there is plenty of demand on coal mining, which we all are aware of. So that gives us lot of confidence in giving such kind of guidance that we are expecting a growth of around 15% in volume terms.

Unidentified Participant — — Analyst

Thank you. Thanks a lot.

Manish Nuwal — Chief Executive Officer and Managing Director

Thank you.

Operator

Thank you very much. Our next question is from Sanjaya Satapathy of Ampersand. Please go ahead.

Sanjaya Satapathy — Ampersand Capital — Analyst

Sir, I couldn’t get in earlier because of some link issues. So I may ask some questions which could be repetitive. Sir, just first thing is that you have given a guidance of 65% growth. I’m assuming that it is at least 65% because otherwise Q4 which is traditionally a bigger — seasonally biggest quarter, you are looking at a significant decline compared to quarter three. Can you please confirm that?

Shalinee Mandhana — Joint CFO

So we have given the guidance of over 65% for the year ’23.

Sanjaya Satapathy — Ampersand Capital — Analyst

So my question is that will you continue to do this 15%, 17% volume growth which you said that you will be doing each year for next couple of years. Will that continue in quarter four as well? And are you seeing some kind of a decline or dramatic change in the realization or in raw material cost?

Shalinee Mandhana — Joint CFO

Yeah. As we have volume, we do see 15% to 17% growth. And on the basis, realization during the quarter, the realizations were stable. But, yeah, since the raw material that especially the ammonium nitrate is already at very highly elevated level. We see that should come down and subside in coming quarters.

Sanjaya Satapathy — Ampersand Capital — Analyst

Ammonium nitrate?

Shalinee Mandhana — Joint CFO

Yes. That is the basic raw material for us.

Sanjaya Satapathy — Ampersand Capital — Analyst

So if that falls, then it will be a pass-through. So it can have some kind of impact on your revenue or realization, but your overall profitability per unit may continue to be as good or maybe better. Is that what we should conclude?

Shalinee Mandhana — Joint CFO

Yes, that is correct. At highly elevated prices, the margins are generally less as compared to when the prices are steady.

Sanjaya Satapathy — Ampersand Capital — Analyst

Okay. But does it affect your unit profit, that is in terms of rupees per tonne of exclusive that you sell?

Shalinee Mandhana — Joint CFO

We — again, we do not look in that way. For us, when we see the margins, we see the EBITDA margins, for which we have given you guidance at average level 18% to 20% should be there.

Operator

Thank you very much. [Operator Instructions] The next question is a follow-up from [Indecipherable] Please go ahead. [Indecipherable] your line is open. Would you like to ask your question?

Unidentified Participant — — Analyst

Hello. Am I audible?

Shalinee Mandhana — Joint CFO

Yes.

Unidentified Participant — — Analyst

Thanks for the follow-up opportunity. My question is, in last one year, volume growth in the domestic business has been 13%. How sustainable this volume growth is by going forward?

Shalinee Mandhana — Joint CFO

We already answered that we see sustainable volume growth of around 15% to 17%.

Unidentified Participant — — Analyst

15% to 17%. Okay. And what is the driver for the export businesses? As year-on-year, for nine months, there is an increase of 97%. What is the expected growth by going forward in next two to three years?

Suresh Menon — Executive Director

Yeah. Our exports will continue to be growing as indicated to you, giving you an overall growth and EBITDA level at 18% to 21%. So we expect the same kind of a growth to take place in the near term.

Unidentified Participant — — Analyst

You are saying 18% to 21%, am I right?

Suresh Menon — Executive Director

EBITDA level, yes. [Indecipherable] Exports are getting [Indecipherable] Yeah.

Unidentified Participant — — Analyst

Okay, sir. Thank you sir.

Operator

Thank you very much. Our next question is a follow-up from [Indecipherable] Please go ahead.

Unidentified Participant — — Analyst

Yes, I just wanted to know what exactly are the capacity expansion plans over FY23 medium and medium term. If you can give me some color on that in terms of broad capex, say, over the next five years or maybe just a volume number, that will be very helpful.

Manish Nuwal — Chief Executive Officer and Managing Director

So our current year capex plan, like Shalinee has mentioned, that we are targeting around INR450 crores or maybe around INR500 crores. So it will be in that range. And in coming years also, for next couple of years, we believe that our capex program will run around INR450 crores, INR500 crores levels on an annualized basis. And our lower capex programs are for improving the defense product portfolio, including the geographical presence within the country and increase our international presence in either new territories or expanding the current capacities of our major geographies where we are present like Turkey, Nigeria and South Africa and Australia.

Unidentified Participant — — Analyst

Okay. So I’m just trying to understand, so when you are expanding into these international markets, I mean, what exactly are these — I mean, what is the capex or what is the investment that goes into setting up these kind of international businesses? Because I may be completely wrong, so you can just tell me where exactly I’m wrong. But you just need to set like a sales or a marketing division over there or is it something more to it that I am missing?

Suresh Menon — Executive Director

Yeah. We have each country operating on their own and taking decision at that level to grow the business. The growth in the business could be within the country — region that they are operating and the nearby of the region where they are. So we have a separate set of people in these countries to handle this business.

Unidentified Participant — — Analyst

So we’re talking about a separate plant as well in the foreign countries as well? [Indecipherable]

Suresh Menon — Executive Director

Yes.

Unidentified Participant — — Analyst

Okay. And just trying to understand, so these international businesses, these are also for defense or these are for civilian applications?

Manish Nuwal — Chief Executive Officer and Managing Director

No, this is only for only civilian applications.

Operator

Thank you very much. [Operator Instructions] Our next question is from Aniket Mittal of SBI Mutual Fund. Please go ahead.

Aniket Mittal — SBI Mutual Fund — Analyst

Yes, thank you for the opportunity. Just a few questions. Manish, on the overseas business, I recollect you were planning some expansions in Australia and Indonesia. If you could throw some light as to where we are on that.

Manish Nuwal — Chief Executive Officer and Managing Director

Yeah. We — our expansion in Australia and Indonesia is online now. We expect our Australia operations to start in Q1 of financial year ’24. In Indonesia, we have partially started the — and actually on day — we should start in the year Q1 of ’24 also.

Aniket Mittal — SBI Mutual Fund — Analyst

Okay. And what are the capacities that we’ve set up over there?

Manish Nuwal — Chief Executive Officer and Managing Director

We don’t share the capacity for each product or country, right. Because generally we share the territory where we are expanding and on an overall basis, we give growth guidance. That’s all.

Aniket Mittal — SBI Mutual Fund — Analyst

Okay. So one is maybe for the current year itself, we’ve been seeing a fairly decent growth in the international market. If you could just highlight total dynamics in the individual geographies as to how they are planning, what is the growth that you’re currently seeing within those geographies, maybe from a volume perspective, that would be helpful.

Manish Nuwal — Chief Executive Officer and Managing Director

So the growth from international market is coming from couple of factors, like first is volume growth of around 15% to 20% in various product ranges. And second is, like we have said that in last couple of years, we were investing and starting in new territories. So those territories have started already. I mean, in future, we are planning to expand in the nearby market. So all these three factors are giving us growth from international markets. And in future also, similarly, we will keep growing.

Operator

Thank you very much. The next question is from Prasheel Gandhi of Nirmal Bang Institutional Equities. Please go ahead.

Prasheel Gandhi — Nirmal Bang Institutional Equities — Analyst

Hello, am I audible?

Manish Nuwal — Chief Executive Officer and Managing Director

Yes.

Prasheel Gandhi — Nirmal Bang Institutional Equities — Analyst

Sir, my first question pertains to your interest cost or net debt levels. Could you highlight what was the net debt level for the third quarter — at the end of third quarter?

Shalinee Mandhana — Joint CFO

So for the Group level, it’s around INR1,400 crores.

Prasheel Gandhi — Nirmal Bang Institutional Equities — Analyst

14 million, net debt?

Shalinee Mandhana — Joint CFO

Sorry. Net debt INR1,200 crores — INR1,215 crores. That was gross.

Prasheel Gandhi — Nirmal Bang Institutional Equities — Analyst

Okay. And my second question pertains to the interest cost. We have seen a huge jump in interest cost for the quarter. So is this something that we have — we need to assume for the quarters going ahead? Or is it just a one-off and we can expect the interest cost to come down?

Shalinee Mandhana — Joint CFO

No, the interest cost already the repo rates have been going up. Can you hear me?

Prasheel Gandhi — Nirmal Bang Institutional Equities — Analyst

Yeah.

Shalinee Mandhana — Joint CFO

The repo rates have been going up. And in the quarter earlier, the average cost of borrowing was less. So around 2.5% repo rates have increased. So as a result, the interest cost has also increased.

Prasheel Gandhi — Nirmal Bang Institutional Equities — Analyst

And my final question pertains to the loan-based loitering munitions. So could you highlight the potential of market and what are — what revenue potential that we can expect from this segment over the next two to three years?

Manish Nuwal — Chief Executive Officer and Managing Director

It is very difficult to do any such kind of guidance on what will be the potential for building[Phonetic] this ammunition. But like we have been mentioning that companies increasing its product portfolio for a variety of applications. So building those ammunition on new-age technologies on which company is investing. And like we have mentioned that few of our products are qualified and we have participated in various RFP for these products. And once we receive any significant orders, commercial orders, we will definitely share with the stakeholders.

Prasheel Gandhi — Nirmal Bang Institutional Equities — Analyst

So could you highlight the competitive intensity in this place? Are we the only players? Or how is the competitive intensity in this place?

Manish Nuwal — Chief Executive Officer and Managing Director

We are yet to receive any kind of official information that who else are participating. So it is difficult to share as of this stage.

Prasheel Gandhi — Nirmal Bang Institutional Equities — Analyst

Okay. And my final question pertains to market share. Could you highlight market share of key overseas geographies? What are the current market shares that we have?

Manish Nuwal — Chief Executive Officer and Managing Director

We don’t have the market share of these countries wherever we are operating. So it is difficult to answer this question.

Prasheel Gandhi — Nirmal Bang Institutional Equities — Analyst

Okay. Thank you very much and wish you the very best for the future.

Manish Nuwal — Chief Executive Officer and Managing Director

Thank you very much.

Operator

Thank you. Our next question is from Jenish Karia of Antique Stock Broking. Please go ahead.

Jenish Karia — Antique Stock Broking — Analyst

Yes, thank you for the opportunity. Sir, if you can help us with the reason for decline in gross margins on a year-on-year basis?

Manish Nuwal — Chief Executive Officer and Managing Director

We mentioned that in this year also, the raw material prices are at a highly elevated levels. And despite of these factors, we are expecting margins to be around 15% to 20% level.

Jenish Karia — Antique Stock Broking — Analyst

That was EBITDA. So the point I was trying to make is that is there any inventory level that have been incurred during the quarter?

Manish Nuwal — Chief Executive Officer and Managing Director

So if you look at our annual guidance, what we have shared is that the revenue, which we are targeting to grow more than 65%. And given we factor the growth into our revenue side, and what we are saying is that we are expecting EBITDA margins of around 18% to 20%. So we have also shared with that there is always an inventory, which we have to carry to run our operations. And there are always some contracts which keep going on with our customers. So as we carry inventory, there are also contracts which are still in running conditions. So every month or every quarter, there are some escalations, and accordingly, our inventory will get addressed to those customers. So we don’t see much impact due to these factors.

Jenish Karia — Antique Stock Broking — Analyst

Okay, understood. And sir, one last question. Actually the other expenses have declined on a sequential basis. I’m not sure if you’ve answered this, or if you could just give us the reason for decline in other expense on a sequential basis?

Manish Nuwal — Chief Executive Officer and Managing Director

So if you capture the material pensions[Phonetic] and other expenses, both are moving in a similar way what we have seen in the last couple of quarters. So we don’t see much change on that account. And all these things are happening because of changing either customer mix or product mix.

Jenish Karia — Antique Stock Broking — Analyst

Understood, sir. Thank you so much for that.

Manish Nuwal — Chief Executive Officer and Managing Director

Thank you.

Operator

Thank you. The next question is a follow-up from Dhananjai Bagrodia? Please go head.

Dhananjai Bagrodia — — Analyst

Sir, most of my questions have been answered. But just on the other flip side, is there any risk we see in terms of global slowdown? And are we seeing there anything in terms of the maybe order inquiry pipeline or how customers are reacting?

Manish Nuwal — Chief Executive Officer and Managing Director

Yes, we have factory in these kind of challenges, whatever we can foresee. And based on those challenges, we have given a guidance which we have issued. In this financial year, we are targeting to raise our revenue by over 65% in this year. So I think that captures the variety of challenges which we are facing at this moment.

Dhananjai Bagrodia — — Analyst

Okay, sir, thank you.

Operator

Thank you very much. [Operator Instructions] Our next question is also a follow-up from Sanjaya Satapathy of Ampersand. Please go ahead.

Sanjaya Satapathy — Ampersand Capital — Analyst

Sir, can I just ask, what is the top country that you export to from here in India?

Manish Nuwal — Chief Executive Officer and Managing Director

We don’t share the country revenue — countrywide details, which we are — we don’t —

Sanjaya Satapathy — Ampersand Capital — Analyst

I’m just asking about the name of the country. I’m just asking about the name of the country the top two — the top one or two country that you export to.

Manish Nuwal — Chief Executive Officer and Managing Director

So that also we don’t share.

Sanjaya Satapathy — Ampersand Capital — Analyst

And the thing that I just wanted to confirm from you is that we just mentioned that you are getting into Australia and Indonesia. So am I to understand that you didn’t have much of revenue from these two geographical yet?

Manish Nuwal — Chief Executive Officer and Managing Director

Yeah, you can assume like this that these countries are yet to start. So revenues from Australia and Indonesia is yet to capture fully into the — our revenue numbers. So this is — these trajectories are at a very nascent stage. We are expecting revenues to grow up from these markets in coming years.

Sanjaya Satapathy — Ampersand Capital — Analyst

And as far as your exports are concerned, bulk of it is for coal or let’s say, or it is diversified?

Manish Nuwal — Chief Executive Officer and Managing Director

Our exports are mainly from India to our overseas subsidiaries where we have a geographical presence. And apart from our overseas subsidiaries, we are supplying to a variety of customers and those customers are spread to almost over 60 countries. And most of the —

Sanjaya Satapathy — Ampersand Capital — Analyst

Are you saying for coal mining predominantly or for non-coal you say?

Manish Nuwal — Chief Executive Officer and Managing Director

It’s a mix of uses. Some of them are for coal, but most of them are for infrastructure-related activities.

Sanjaya Satapathy — Ampersand Capital — Analyst

Okay, okay. And the same thing which you will try here in Australia as well?

Manish Nuwal — Chief Executive Officer and Managing Director

Yes.

Sanjaya Satapathy — Ampersand Capital — Analyst

Given this guidance of 15% to 17% growth overall, can I ask that how much you are looking at within India? And how much export system will continue to grow?

Manish Nuwal — Chief Executive Officer and Managing Director

So this was your last question. I will answer to that. So we are expecting volume growth of 15% to 17% in India and outside as well. Thank you.

Operator

Thank you, sir. And then our very last question is from Prasheel Gandhi of Nirmal Bang. Please go ahead.

Prasheel Gandhi — Nirmal Bang Institutional Equities — Analyst

Hello?

Manish Nuwal — Chief Executive Officer and Managing Director

Yes, please go ahead.

Prasheel Gandhi — Nirmal Bang Institutional Equities — Analyst

Yeah. Sir, just a question. So from earlier calls, you were guiding for a 25% value growth over medium term. So with expectation of ammonia nitrate prices correcting and hence for that, expectation of our realization is to come down, so do you still maintain that guidance?

Manish Nuwal — Chief Executive Officer and Managing Director

Yes, after capturing all these kind of scenarios, we believe that we should grow by over 65% in this financial year.

Prasheel Gandhi — Nirmal Bang Institutional Equities — Analyst

No, no, sir, for the coming quarters of — over medium term, we were maintaining some 25% growth guidance over medium term. So could you highlight that?

Manish Nuwal — Chief Executive Officer and Managing Director

We have shared that. We are targeting a volume growth of around 15% to 17%. And as far as value growth is concerned, it is difficult to share at this stage, which we will definitely share after Q4 results are over.

Prasheel Gandhi — Nirmal Bang Institutional Equities — Analyst

Okay, okay. Thank you very much, sir, and wish you the very best.

Manish Nuwal — Chief Executive Officer and Managing Director

Thank you very much.

Operator

Thank you very much. Ladies and gentlemen, we have reached the end of our question-and-answer session and I would like to hand the call back to management for closing comments.

Aanchal T. — Head of Investor Relations

We appreciate the time given by everyone. Thank you so much. See you again in the next quarter.

Operator

[Operator Closing Remarks]