Standard Glass Lining Technology Limited (NSE: SGLTL) Q3 2026 Earnings Call dated Feb. 05, 2026
Corporate Participants:
Monali Jain — IR
Nageswara Rao Kandula — MD
Anjaneyulu Pathuri — CFO
Analysts:
Unidentified Participant
Raman KV — Analyst
Koushik Mohan — Analyst
Maitri Shah — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Standard Engineering Technologies Limited Q3 FY26 earnings conference call. 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 touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Manali Jain from Goindia Advisors. Thank you. And over to you Ma’a m.
Monali Jain — IR
Thank you, Steve. Good evening everyone and welcome to Q3 and 9 month FY26 earnings call of Standard Engineering Technology Limited. We have on the call Mr. Nageshwarao Kandola, Managing Director, Mr. Ramakrishna Kandola, Executive Director, Mr. Venkata Mohanarao Katargadda, Executive Director and Mr. Ranjanigalu Pathori, Chief Financial Officer. We must remind you that the discussion on today’s call may include certain forward looking statements and must be therefore viewed in conjunction with the risk that company faces. I will now request Mr. Nagesh to take us through the financials and business updates subsequent to which we can open the floor for questions and answers.
Thank you. And over to you sir.
Nageswara Rao Kandula — MD
Dear shareholders, investors, analysts, partners and well wishers. Good evening all and thank you for joining us today. It is my privilege to present to you the Q3 and 9 months FY26. Performance of Standard Engineering Technology Limited a. Period that marks strong financial execution, strategic. Transformation and the laying of foundation for our next phase of global growth. During Q3 we formally completed an important milestone with change of our company’s name. From Standard Glass Bearing Technology Limited to Standard Engineering Technology Limited. Let me be very clear, this is not a departure from Glasslining. It is an expansion of our identity to reflect what we have already become. Glasslining remains at the core of our DNA and it continue to be one of our fastest growing and most profitable verticals. However, over the last few years the company has evolved into a high precision integrated engineering platform capable of delivering complex multidisciplinary projects with single point accountability. From concept to commissioning. The few names reflects our expanded engineering capabilities, our turnaround, execution strength, our global ambitions and our role as a long term strategic partner, not just an equipment supplier.
This evaluation has been deliberate, disciplined and customer lead. The initiatives announced earlier have now been fully implemented. During Q3 we successfully completed the acquisition of Cygenyx Private Limited significantly strengthening our position of bioprocess, fermentation and lifestyle systems. We acquired a majority stake in C2C including Private Limited now renamed Standard C2C Engineering Prevention Test Beginning Process Mechanical, Civil H VAC, Electrical Instrumentation and automation engineering fully in house. Due to this integration, Standard Engineering Technology Ltd. Today operates a true end to end engineering solution company capable of executing large, complex and regulated projects with speed, precision and accountability.
While our engineering platform has broadened, I want to recreate the glass lining remains a major growth engine. Shall I Glasslining heat exchangers developed with our Japanese partner Glaco have been expansion market acceptance our 200 units already in order book 100 units successfully delivered. These parts are increasingly replacing graphite and. Alloy alternative due to superior safety, life. Cycle performance and reliability. Conductivity Glass Layering Reactors One of the most exciting development in our journey is. The successful execution of conductivity glass layering reactors. Multiple units have already been manufactured, supplied and executed successfully. Customer feedback has been extremely encouraging, especially from regulated Pharma Markets. From April 2027 we will officially launch conductivity plastic reactors in India and global markets. Our international partner ITP has expressed strong interest in selling a majority of these reactors globally, which we see as a powerful validation of the technology. We firmly believe this product has been potential to redefine safety standards in pharmaceutical and chemical contexting worldwide. The Union Budget 2026 is a nearby nearly 10% increase in allocation to the Department of Health and Family Welfare creates a strong structural tailwind for US Pharmaceutical, biotechnology, advanced manufacturing facilities.
For a company like ours deeply embedded in a precision engineering and turnkey execution, this translates into a long term demand visibility across greenfield and brownfield projects. Financial performance strong and consistent. Coming to our financial performance Total income for 9 months FY26 go by 23.6% to ICT crores IC2 crores 23 FY26 income increased by a strong 37.1% year on year to 196 crores. Profitability improved in line with growth EBITDA for 9 months FY 2016 at 102 crores Q3 EBITA increased to 34 crores, had grown 18.8% for 9 months FY26 and by 28.3 during Q3. These numbers reflect disciplined execution, improving operating leverage and the early benefits of our integrated engineering model.
ARM export and we enter the next financial year with a strong and diversified ARM Book growing traction on turnkey engineering, glass lining, heat exchanger and advanced technologies Export contribute already at 50% significant headroom for growth, robust ARM inflow in FY27 strong export raw material continued focus in profitable growth capital display and execution excellence behind every milestone stands our people, our engineers, technicians, partners and customers whose trust and commitment fuel our progress and standard. Engineering technology today is not just a company. It is a platform for long term value creation. A company built in engineering depth, technological leadership and global ambition. Thank you for your continued trust and support. With that, we will be happy to. Open the floor for questions. Thank you all.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press N1 on their touchstone telephone. If you wish to withdraw yourself from the question queue, you may press N2. Participants are requested to use handset 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 Raman KV with Sequent Investments. Please go ahead.
Raman KV
Hello. So can you hear me? Yes, so thank you for taking my. Question and congratulation on good set of numbers. So my first question is with respect to a margin. Yes, my first question is with respect to the margin. The margin has declined from 18.6 to 15.1%. And in the previous quarter also when we asked about the margins, you. You said the margins will be improving sequentially. So I just want to understand what was the major reason for the decrease in the margin during your quarter or this is. Is this the new normal 15 going ahead?
Nageswara Rao Kandula
Margins are actually weak. Last call. I told margins going to increase. We expected this 4.5 million export is happening. But third quarter only 1 million export will happen. And next quarter we are going to do 33.5 million export. That is due to the company name change. And again we are ventos Comet license rest. We got license and equipment is ready to decide. So fourth quarter going to slightly that. That whatever declared the profit going to. Increase in fourth quarter due to that slightly. This is decreased our profit. Okay. Any. Any further question?
operator
Mr. Raman K.V. does that answer your question?
Raman KV
Hello.
operator
Yes, please go ahead.
Raman KV
Yeah, so. Yeah, just a follow up on that. How much was the impact due to labor code? Have we. Have we taken any impact on the labor code changes?
Nageswara Rao Kandula
Sorry, sorry, say again please.
Raman KV
So. Have we. Have we taken any financial impact due. To the recent labor code changes? Yeah. Hello?
Anjaneyulu Pathuri
Yes. One second, sir. So the labor code impact has been evaluated from the management side. And we had already compared with the labor code already. Whatever the basic things that 50% gross spend. Everything has been compared already. There is no additional impact which needs to be considered in the financial statements.
Raman KV
Understood, sir. And so my second question is. We have acquired two entities side Genics and C2C Engineering in the previous quarter as you mentioned. Can I know what is the current. Run rate of these business?
Anjaneyulu Pathuri
Sorry, can you please repeat?
operator
Raman sir, can you please use your handset?
Raman KV
Yes. Can you hear me?
operator
Yes, far better. Thank you.
Raman KV
Yeah. So I just want to understand that. The two entities which we acquired site Gen X and C2C engineering firm. The current quarterly run rate of this and much do you see the potential to scale this business.
Nageswara Rao Kandula
This is actually these companies. Whatever we acquired that companies are size was very small. Our strategy also earlier also I said same thing. But the technical and intellectual wiser very high. And C2C maybe last year last this year they are going to touch maybe 2022 crores revenue. Next year we are targeting at least to double or triple their revenue. That is possible. These are there and C2C revenue and cyclic standard cylinic also Maybe after they came to standard technology under maybe 25 to 30% growth is going to happen in standard cycle also. So both companies have bright future.
Total addressable market is very high. But due to some their management constraints from their growth is not happening. Now we are pushing things and we are introducing our own customer base and domestic and globally. So very bright futures are there that both companies.
Raman KV
Understood sir. And sir we only in the previous quarter you mentioned we we have acquired 51% stake. Are we planning to acquire the remaining. 49% stake in C2C.
Nageswara Rao Kandula
Present present. Their management will continue. They are very strong in engineering. They are very good people old management and they have 20 years experience. They have very very good contacts in the market. We are also happy to continue their very strengthen our technical and engineering aspects.
Raman KV
Understood sir. Thank you.
Nageswara Rao Kandula
Thank you.
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 Kaushik Mohan with Ashika Group. Please go ahead.
Koushik Mohan
Hi sir. Sir, I have just a small understanding over here. Can you help me with Currently also last quarter we told that there is some exports which will be delayed again it got it was going to come in Q3. Now we have the reason by telling that we have changed the name. And that’s the reason the this exports. Is not happening right. So. So will it this be passing on or it will be in the same in line for the Q4. Are we going to meet our growth guidance whatever we have suggested?
Nageswara Rao Kandula
Yes. Yes. You’re exactly correct. 4.5 million 1 million completed Q3 3.5. Million is almost in packing condition. That is going to complete in Q4. So whatever I we committed 13 export that is going to be reached that we are going to reach 100.
Koushik Mohan
And on the sales side we have grown on a Y O y basis around 36%. 36, 37%. On QQ we’ve grown around 4.8%. But when we look at on the gross profit margin we made a gross profit of 38.9 percentage. But when we look at Q2 we made around 35.6. There was an improvement in the gross profit. But when it was slowing down to ebitda. I can understand the employee cost that is because of labor code. But also when we see our total expenses that is also increased as per the revenue. So is there any why? Because majority of costing is coming under other expenses.
If possible, can you give more clear understanding on other expenses. Why is this too high?
Anjaneyulu Pathuri
I’ll just give the logic behind you one second. Sir, I’ll just give you the logic behind this. Maybe what you observed is perfectly right. So here there are two reasons. One is increasing the employment benefit expenses. We are recruiting the people at a high level to get into the new end user industries as well. And we are building the team to get into the new end user industries. That is one reason. And second one is the increase in other expenses mainly due to the increase in the consumption of the consumable item which will be priced primarily used in the projects.
So because of which these two exchanges have got increased in the current quarter and divided by as well.
Koushik Mohan
Okay. So that means that. Can I understand that Q4 this will not happen and the Q4 margins will improve is my understanding. Right?
Anjaneyulu Pathuri
Because since we are recruited the manpower also this will get. Yes.
Koushik Mohan
Sorry.
Anjaneyulu Pathuri
Yes. Yeah. Since we are recruiting the people, this will be the.
Nageswara Rao Kandula
Yeah.
Anjaneyulu Pathuri
You can tell. Sir.
Nageswara Rao Kandula
Can I tell? Can I answer?
Anjaneyulu Pathuri
Yes. Yes.
Nageswara Rao Kandula
Q4 is going to complete completely what balance export and also growth also good. So profit going to Q4 is going to increase.
Koushik Mohan
Got it, sir. So sir, then that means that our Q4 numbers will be more better than whatever we can expect. Because whatever has been one time costing over here will be not be considered there.
Nageswara Rao Kandula
Mr. Kaushik, last last year also we announced this year we are going to. Grow. 25 to 25%. 20 to 25%. This is going to grow no more than. Maybe more than
Koushik Mohan
that will help for. Us on the growth part. And sir, one clarification only like recently we have pledged our shares, right? Can we understand what’s the reason it. If it is possible
Nageswara Rao Kandula
that is only years there’s nothing related with company. Company has cash, cash in cash in banking cash 50 crores. And even though CC also today, today we are giving only 44 CC. This business is growing and quarter on quarter and 50 units also we are using 40 crores. So cash flows company, cash flow company, cash, cash, everything is very strong. This is only promoter purpose. We think that’s all.
Koushik Mohan
Okay. Okay. Thanks. Thanks. That. That helps us a lot.
operator
Thank you. Participants. If you wish to ask a question please press star and 1. The next question comes from the line of Ram Arvind with I thought pms. Please go ahead.
Unidentified Participant
Hi. Am I audible?
operator
Yes sir.
Unidentified Participant
Yeah. Thanks for the opportunity. And just a question on the shell and tube glass and heat exchanger. So this is going to have a. Considerable amount of our top line starting from FY27. Right. So I want to know if we have like what sort of order inquiries do we get that is from which segments or which sectors do we get order inquiries for the high alloy heat exchanges. Not the glass line one but the normal high alloy heat exchanges.
Nageswara Rao Kandula
Can you. Can you. Excuse me. Can you. Can you ask again question Please log. Your wife is not coming properly. I am out of country. That’s it.
Unidentified Participant
Yeah. Can you hear me now?
Nageswara Rao Kandula
Can you speak loudly?
Unidentified Participant
Oh yes. Yes. Now. Yes. Yeah. So apart from the glass line challenge you heat exchanger which we are going to be starting on full flow from FY27 which is going to hit our top line. So I want to know what other heat exchanges. So it is the high alloy heat exchanger. Which segment is this mainly being catered to? And that’s the first part of the question. And secondly do we have a steady order pipeline or do we have inquiries from the petrochemical and oil and gas sectors. That will be my first question and I’ll come to the next question.
Nageswara Rao Kandula
This is this. Silicon carbide ILI heat exchanger and graphite. Particularly graphite. Graphite is 80% industry usage because of low cost. But with the pre failure and particle issues this is the solution we are providing. And ILI also a lot of limitation is there coming to silicon carbide price is five times compared to this glass. This glass legging life also very long life at least minimum 15 years. So this 34 areas of remote which. We are going to replace. And we have. During my speech I said 200 but. We are limited because of FL onwards. We are going to full f our capacity. In Japan also we are expanded plant. And India also this going to complete coming four weeks. So SL onwards our capability is we. Can produce per month. And average price we are considering 12 lakhs rupees. We take sensitive. But how much immediately 300 maybe we can’t tell. Every month we are targeting first quarter at least 100. Each month 150 we are planning to sell. This is big market India have two. Course opportunities Global also there global also we are global requirement purpose Europe and US market purpose. We are planning to start some sample equipment and and our global partner. I also greating about this product. Because of the high estimate light is four years. Five years but years many people they don’t bother about cost. But four years. After five years this is going to fill you again the supply and. But this is going to be a permanent solution to market.
Unidentified Participant
Okay. Thank you sir. So. But since the. Since already our revenues is close to 80% above with catering to the pharma sector. Right. And even the glass lined shell and tube exchanger will again. I. I assume that will be going towards the pharma sector. So how’s the. How is the like you know revenue diversification happening here?
Nageswara Rao Kandula
Pharma. Pharma is required. But I sold in India first heat exchanger. I sold the SRS later than I sold to Dhak and I sold to with all chemical clients. But I reviewed recently CDMO players. Many many CDMO players given recently. Because I life and Almost I think singular 45 numbers we received from 5. 40. 45 something like that. We are very unique and so this product no alternative suppliers. So this is very big. But we are now once for apl Once we start in India assembly center. Then we can pick up. But equally this product is required in chemical and pharma. Maybe petrochemicals less not much. But pharma and chemical. And this area is very very much required.
Unidentified Participant
Okay sir understood. On the high alloy exchanger. So which sector do you mostly get orders concerned? Is it from the oil and gas or petrochemicals? So for the high alloy heat exchanger which sector do we get on?
Nageswara Rao Kandula
Wherever. Gas also the space also we can replace. But based on application. Suppose vapor and coolant also both are corrosive. The heat exchangers are not suitable. Wherever one side corrosive second side is. Coolant is normal media and which is useful. Yes. We are Gujarat satellites also GSNC also we are discussing for the day. They are facing many problems. They are importing it. Lot of discussion is going on. But we are not fully ready. We are slowly launching. But God grace successfully we supplied hundred numbers. All are happy and the clients are asking again he’s again when are when we are going to supply. But recently we announced we are going. To supply APL onwards full. We have started order booking and the prices also wherever. Now earlier prices are very high from import from Japan. Now recently we reduced another 20 25% prices to heat exchangers. Our aim to sell more heat exchanger into the Indian market. And the same time our revenue growth. At the same time our customer going to get benefit. This is our aim.
Unidentified Participant
Okay, sounds good sir. Thank you very much. Just one last question on the C2C acquisition. So can you just help me to like. You know give some light on what exactly C2C does and how it’s going to help with your engineering capabilities Apart from equipment like how you’re going to like transition to a solution.
Nageswara Rao Kandula
C2C accurate means. Actually last three years back we have. We decided our company product company to slowly become a solution provider. So based on the in house engineering. Team is there we are doing three. Our capabilities is four or five projects at a time. We can handle engineering team. But more demand from market. More demand barred increasing. And also suddenly we got opportunity CTC. Opportunity CTC. A 20 years old company. They build scratch to complete plant in high building plant. Duckan. And many many companies they build granules. They work with many pharma and chemical both and paint industry also. And food also. And even their battery reprocessing plants also they build. They will give complete basic concept to completion. Means they will do. Suppose anybody who have land they will give full contact. They provide basic engineering. They will provide detailed engineering. They will complete engineering. They will provide.
And the standard glass. Standard engineering technology is provided for producing. 80% in house equipment. So we are. We are capable in house equipment manufacturing and supply commission up to water train. So this is. We have now full capabilities end to end. Earlier also we have enough capabilities. But after C2C acquired C2C how I easily use technology. So based on this we are so complete solution. Providing a complete solution provider. This is only one company in the world. You can look into the. You can search in web. You will understand. Many engineering companies are there many equipment manufacturers. Are there many equipment Means independent. Some some company will manufacturing only equipment. Some manufacturing companies will manufacture equipment come. To companies in 10 variety of equipment. But we are coming to. We have engineering capabilities and 95 variety of equipment. We are in house manufacturing. It’s not only man we supplying commissioning. We are taken to our our responsibility. So customer also feel happy. So we are providing complete solution. That is that purpose we are acquired C2C.
Unidentified Participant
All right sir. Yeah. Thank you, sir. If there’s any more questions, I’ll join back in the queue. Thank you.
operator
Thank you. Ladies and gentlemen. If you wish to ask a question, you may press star N1. The next question comes from the line of Krishna, an individual investor. Please go ahead.
Unidentified Participant
Good evening. It is audible.
operator
Yes. It is audible.
Nageswara Rao Kandula
Yes. Speak loudly.
Unidentified Participant
Yeah, I was checking the like this Q3 financials. I. I understand there was a jump in the inventory by 20 crores in an absolute terms. May I know the reason for the same why there was so much jump in the inventory?
Nageswara Rao Kandula
Can you answer that question? Can you understand that?
Anjaneyulu Pathuri
As he explained me, so most of the export equipments are also ready which is there in the inventory which needs to be delivered in this month. Because of that, that inventory levels are high. That is one thing. And second one is. Second one is we have acquired the standard size mix as well. Right. So there is some inventory over there which is not there in the Q3, which is. Is there in Q. Sorry, which is not there in Q2. Which is there in Q3. These are the two reasons. Primary reasons.
Unidentified Participant
Okay. If we see the for financial year 2627. Consider 2728. Considering the recent acquisition of C2C and what the subsidiaries we have incorporated in the US what we is our revenue topline expectation for 2728 in the absolute terms.
Anjaneyulu Pathuri
Can you answer offline for the 2728 financial year after considering the acquisitions of C2C and Standard Sagittarius?
Unidentified Participant
Yeah, the. Considering the US it got incorporated the subsidiary of the standard engineering.
Anjaneyulu Pathuri
Yeah.
operator
Sorry to interrupt, sir. Nagisa got disconnected. I’ll reconnect him. Just a second. Ladies and gentlemen, the line for the management has been reconnected. Please go ahead. Krishna, could you please ask your question again?
Unidentified Participant
So I was checking for financial year FY 27 28. What will be the revenue guidance considering the recent acquisition and the subsidiary what we incorporated in the U.S.
operator
Nagisa, can you hear us? Ladies and gentlemen, the line for the management has been disconnected again. Please wait while we reconnect.
Anjaneyulu Pathuri
Hello.
operator
Yes, I can hear you. Please go ahead.
Anjaneyulu Pathuri
Yeah, as per the earlier discussions also I think he has mentioned in earlier calls also, our objective is to grow our revenues at as per 25%. Our objective is to grow at 25%. We continue to grow our revenue targets at that same level. It may go up also considering all these things. But our objective is to grow our revenues at 25%. Which is clearly evident based on the nine. Nine months revenue currently nine months revenue versus previous year. Nine months revenue as well. So our objective is to grow like that.
Unidentified Participant
Okay, one last question. What will be your revenue comp. Contribution from the US market?
Anjaneyulu Pathuri
Sorry, come again.
Unidentified Participant
What shall be your revenue from the US market? Revenue contribution from the US market.
Anjaneyulu Pathuri
You mean to say for FY20, 2627 financial year?
Unidentified Participant
I figure for 2728. 26, 2727 28. Not 2627.
Anjaneyulu Pathuri
Yeah, 20, 27, 28. It will go. It will increase significantly. But our long term objective is to go long term objective is to increase our export revenue significantly. Considering the relationship that we. Considering the collaborations that we have with Biocon and ipp.
Unidentified Participant
Okay. Okay, thank you. That’s all from my side.
Anjaneyulu Pathuri
Yeah.
operator
Thank you. The next question comes from the line of Maitri Shah with Sapphire Capital. Please go ahead.
Maitri Shah
Hello, Am I audible?
operator
Yes, ma’a m.
Maitri Shah
Hello.
Anjaneyulu Pathuri
One second. Sorry, one second. Sorry sir, can you connect Mr. Nagish sir, once.
operator
Oh, yes.
Maitri Shah
Okay. Thank you. Yeah, can I go ahead?
Anjaneyulu Pathuri
Yeah, yeah, yes.
Maitri Shah
Okay. Firstly I wanted to just check in about the two acquisitions that we did. The Psycho NX and the C2C Engineering. Could you repeat the current revenue per quarter of these companies?
Anjaneyulu Pathuri
Yeah. So. Hello. Yeah, yeah. So your question is like what is the. What is the revenue from this TYZ business and C2C business in the current financial year? Right.
Maitri Shah
Yeah. Correct. And not including them in our books, just on the standalone basis, both of these companies are earning.
Anjaneyulu Pathuri
Yeah. Based on the. Based on the previous financial year their revenues were somewhere around 25 crore. And current year it is expected to grow to touch financially 26 to 26. Expected touch somewhere around 40 crore. In the case of standard C2C and in the case of standard seismics it is going to touch somewhere around 35 to 40 crore in the current financial year. Without considering the effect effective date of the acquisition date. I’m telling.
Maitri Shah
Okay. Okay. And we’re expecting a 25% growth rate for FY26 as well. So this year. This current year. Fiscal year as well.
Anjaneyulu Pathuri
Sorry, come again. Your voice is breaking bit. Can you please.
Maitri Shah
Yeah. So for FY26, are we expecting a 25% growth? The revenue as well?
Anjaneyulu Pathuri
Yes, yes. Okay. And it from the nine months to nine months as well.
Maitri Shah
Correct. And since you said that we had a delay in the exports for quarter three and most of them are going to come in quarter four. What sort of sustainable margins do you see? Because now we’ll see a year on year increase in the export sales as well. So what sort of Sustainable margin profile you see in the EBITDA level going from. Going forward from FI fourth quarter FY26 and also from FY27.
Nageswara Rao Kandula
Yes, yes madam is going to slightly going to increase and revenue also where we are expecting very good growth in next 27.
Maitri Shah
Any kind of number you can give. Any. Any number you can give on the sustainable margins we can use.
Nageswara Rao Kandula
Present margins slightly going to increase that I can say figurable number wise we can’t but slightly they are going to increase better. Better position.
Maitri Shah
And export this year we are targeting a 13 of our total revenue. What goal do you have in the next two years from exports? What sort of contribution do you expect from exports coming in? Can we reach a 25 number? Is that possible?
Nageswara Rao Kandula
25% maybe next year maybe not possible chances are there but not sure but we can reach 15 to 20%. Surely 50 to 20% we can.
Maitri Shah
Okay, okay that is great. And differential do you have in the exports versus the domestic sales? So how much more margins are we earning on the export side of the business?
Nageswara Rao Kandula
Export always betterment Export. Export region is always better.
Maitri Shah
Correct. But any. Any number you can give like what sort of differential do you have percentage wise.
Nageswara Rao Kandula
We can’t disclose that type of detail.
Maitri Shah
Okay, okay, okay makes sense. And it was mentioned in the correct in the presentation we have mentioned that we are going to incur 130 crores of capex in the next two to three years. What sort of Capex amount are we going to incur in FY27? And if you could kind of explain what what are we adding to the capex? What capacities are we adding.
Nageswara Rao Kandula
Existing facilities. We are already started investing this year. How much this year you invested in Capex earlier till date
Anjaneyulu Pathuri
30 to 30. Current year 30.
Nageswara Rao Kandula
Sorry
Anjaneyulu Pathuri
current year 30 crores and totally somewhere dark.
Nageswara Rao Kandula
4Th quarter also we are going to invest another 2020 crores and existing facilities we are improving and that improvement maybe another 30, 4050 cross total. 200. Cross grass block we are capacity. We are creating 2000 cross and greenfield. Also we are building the one more project that is we got permission and we first place we are going to build the some four and a five lakh square feet we are going to build the in the first place and the 23 lakhs square feet we are. Within we targeted 27 to complete
Maitri Shah
target is to complete
Nageswara Rao Kandula
almost all that expenditure. That that Capex investment may be greenfield investment Maybe first year maybe we next year maybe we are going to invest 7200 course between we are going to invest on that project.
Maitri Shah
And this will be commissioned by when.
Nageswara Rao Kandula
This. One year. One year. It will take 27 finance year. First phase here may be availability to product start the production.
Maitri Shah
Okay. So one year for commissioning and 70 to 100 crores is the cap. Is that correct?
Nageswara Rao Kandula
Yes, that is Greenfield. Greenfield.
Maitri Shah
That is greenfield. Yes. Yes. Yes. Okay. And close to 30. 30 to 50 crores next year will be invested in the existing plant.
Nageswara Rao Kandula
Yes. Yes.
Maitri Shah
So a total cap. So a total expenditure of 100 to 150 crores on capex will happen in FY27.
Nageswara Rao Kandula
Yes.
Maitri Shah
Okay. Yeah. That is it for my side. Thank you. All the best.
Anjaneyulu Pathuri
Thank you. Thank you.
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 Sai Kumar, an individual investor. Please go ahead.
Unidentified Participant
Yeah. Hello. Am I audible?
Nageswara Rao Kandula
Yes.
operator
Yes, you are.
Unidentified Participant
Yeah. Thank you for giving me this opportunity, sir. So my question is on the shell line tube of glass line heat exchangers. So you said from April you are going to commence 300 units per month. So like if you want to reach. So for example, you are starting with 100 units per month. So how much time it is going to take for you to reach the 300 unit per month capacity utilization? So what is the time frame you have in your mind?
Nageswara Rao Kandula
We are creating day one 300 heat exchanges capacity in Japan and India also same thing. Because of 80% equipment we are manufacturing in Japan. And 20, 20, 25% approximately we are manufacturing in India. So both places we are creating capacity once launch customer acceptance. The customer acceptance is good. And we based on customer response only. But capacity we are already going to. Create April month onwards 300 numbers. That is customer based on customer acceptance. Once the customer wants customers orders is 300 we can submit. But that is in one month immediately maybe we will not get the hard 300 numbers. That’s the reason I said 100 members comfortably we can book per month. That is your planning.
Unidentified Participant
So initially you are going to start 100 per month. And slowly by year end or one year or two years, you will reach 300 unit.
Nageswara Rao Kandula
That is not, not one year. We want to see. We want to see as soon as possible. We want to utilize the capacity full page. That is our target. We are area. We are producing every month 150 reactors every month. And that every reactor is required two heat exchanges. That purpose only. We created 300 detects in this capacity. And other competitors also every month they are producing 600. 600 reactors whole. All other manufacturers that are 600 also required heat exchangers. But that for this part the others don’t have. So that opportunity also we will get. So this is. That’s the reason next year I’m. I hope 100%. I’m sure also next year we are going to become the largest glass selling equipment manufacturing India. Some people earlier there some people are climbing 50%. And the market leader like that not 50%. We are. I’m going to tell confidently. So we are going to become a largest glass equipment manufacturing in India. This is not a only challenge to glass reactors also without gasket we launched it that is highly responsible from clients and conductivity glass line reactors. And recently Lars labs given one big order. And hetero is the first. Hetero is they build the one serum plant.
They are given conductivity glass, running water and big price. Very very high response area is facing static issue. And they are given one reactor order. We supplied successfully. Wherever we supplied a lot of flaps is to be supplied. But Hetero and Sun Pharma we supply they are very happy. This also these parts also don’t have any alternative competitors. And Europe based on the explain Europe and US markets we are going our partner ITP going to sell. So this all things we consider. We are. We are going to become a largest glass equipment manufacturer in India 27th financed year.
Unidentified Participant
Okay so one more question sir. Last year your sales is around 615 crores. And this you are. This year you are telling around 750 crores. And exports will be 13% of the revenue. So my question is then last year sales no exports. So we are just growing like around by 5% in the domestic sales. So my question is like why so low growth in the domestic sales?
Nageswara Rao Kandula
No, no. Not no. This is manufacturing company. This is manufacturing creating capacity. We are increasing capacities, manufacturing capabilities and adding manpower. This year we are growing 25%. So next year. Next year may be more more and exciting here next year so growing that is export domestic. Why we are more focused on export because of high margins.
Unidentified Participant
Okay so exports.
Nageswara Rao Kandula
They are focusing more export. So purpose of high margins. So that is domestic growth or export growth. Ultimate growth is important. High profitability top line and bottom line both are important. Any business that is being considered.
Unidentified Participant
Okay so export. That I mean that was my question. Like. But margins are still coming down because as you’re telling exports you’re trying to increase. As you said margins are high. Bit high for the exports. But as you see the margins are bit coming down. So can you please quantify what was the reason? Like.
Nageswara Rao Kandula
Q3 we are expected full for 4.5 million export but we did only 1 million and Q4 we are going to do 3.5 million margin slightly going to increase next year we are targeting EBITDA is more EBITDA we are targeting next year very high Agreed mid year. I can say cargo entry.
Unidentified Participant
Okay? Yeah. Okay. And what is the. Can you please just tell me what are what kind of orders you are having for Shell and Tube glass line in heat exchanges. Like how much quantity you are in? The previous call you said completely booked. So can you please tell the numbers per month how many like.
Nageswara Rao Kandula
Present we don’t have that much capacity. But completely whatever capital Japan is sending to India that capacity we fully booked. Currently we are already adding. I think 120 numbers in hand are in hand. So my hotel onwards we are going to full page. That is answer.
Unidentified Participant
Sorry I missed your how much orders here.
Nageswara Rao Kandula
120 numbers in ring.
Unidentified Participant
I know 120 numbers. Okay. Okay sir. And what is the one last question. What is our cash flow from operations?
Nageswara Rao Kandula
Cash flow from operations. This is how much?
Anjaneyulu Pathuri
Yeah. So approximately this as in today it is somewhere on 15 crore. But as on 31st December it is 2 to 5 kilometer cash program operations.
Unidentified Participant
Okay. Going forward we are expecting increasing right.
Anjaneyulu Pathuri
Significant inflow. We are expecting in the in this quarter by March 31st we are going to get significant cash inflows from the collection of the data and from the business as well.
Nageswara Rao Kandula
Already already improved. A lot of improvement is happened last compared to last quarter. Starts from operations this year March 31. How much you are expecting?
Anjaneyulu Pathuri
One year approximately 50 to 70 plus positive sir. Cash flow positive for 50 to 70 plus. We are going to positive cash flow.
Unidentified Participant
Okay, so I like what is the EBITDA per CFO range? Can you please like what is the. Number if you can give us
Anjaneyulu Pathuri
will be somewhere around one second. So EBITDA. Is approximately 30 to 40% earning out of EBITDA.
Unidentified Participant
Okay. Yeah. Okay. Sir, can you give us some order?
operator
I’m sorry to interrupt. Could you please come back in the queue?
Unidentified Participant
Yeah. Thank you. Thank you. I’ll come back in the queue. Thanks.
operator
Thank you. The next question comes on the line of Raman KV with Sequin Investments. Please go ahead.
Raman KV
Yes sir. Thank you for the follow up. I just want to understand the reason for the promoter pledge. I didn’t quite get why there is an automotive pledge.
Nageswara Rao Kandula
This is nothing related with company.
Raman KV
And are you planning to by when do you have plan to remove the promoter page? Is there any timeline?
Nageswara Rao Kandula
Maybe next. Maybe next six months Maybe early also. Early also.
Raman KV
Answer just one doubt on the order book part. What’s our current order book?
Nageswara Rao Kandula
Sir, next we are. We have not decided to disclose the order book figures article. Because I don’t want to take my computer advantage next year. Damn sure. Better than this year. Please trust me. Understood.
Raman KV
So thank you.
Nageswara Rao Kandula
Thank you.
operator
The next question comes from the line of Kaushik Mohan with Ashika group. Please go ahead.
Koushik Mohan
Hi sir. Thanks for giving one more chance. It was like. I think someone previous to this question someone had a question like the question was like last year sales was around 615 crore. And this year we are in the run rate of doing 25% growth. And if we assume 13 percentage to be our overall exports that means that this year numbers will be on the domestic sales will be around 625 crore. So last year said this year is only 10 crore up. But when we see our execution in the ground that we feel that majority sales is coming from domestic.
So how are we going to capture this? How are we going to do it in the next year as well as this year this number, how are this going to be changing?
Nageswara Rao Kandula
What happened? Mr. Kaushik? We are focusing in the export mode. Both important domestic imported export. But wherever good opportunities are coming from export we are because of high margins. So we are focusing that ultimately company year on year growing is important. Growth is important and top end and bottom line also. But ultimately domestic we are not we are looking domestic this much growth, export this much. Because we are combined growth is 25% that we targeted. We are achieving. That’s all .
Koushik Mohan
So great sir. And the last question from my end. Just can I understand this by current equations and by current run rate and the factory which is coming up on the larger scale by this considering this next three to four years can also we expect 25 percentage plus growth. Is my understanding on the revenue side as well as if that is 25% on the revenue then PAT will be around 25 or plus because of operating leverage that we have. Is my understanding. Right?
Nageswara Rao Kandula
No pad. What is the pat?
Koushik Mohan
25%. My question was this year we have reinitiated that we’ll do 25 percentage growth. And with the same growth can we achieve for next three years also because I think on the ground our factory is coming up and everything is happening right. So if the top line is 25 percentage growth rate then then can we expect the same growth rate in the pat Profit after tax.
Nageswara Rao Kandula
Yes, profit and EIT also going to increase and pat also going to increase and Also not next year maybe more than 25, not 25% more than we are going to grow is in organic growth not inorganic growth, organic growth only we are going to more than 25%.
Koushik Mohan
Got it, got it. Thanks. Thanks for this.
Nageswara Rao Kandula
This was. Yeah. Very very our business fundamentals are very strong. That’s the reason our company name also lot of people are confusing because of standard gas lining glass learning as your core engine growth engine unique products. Others don’t have this type of glass also but we are strong but compared to our glass other other divisions are growing very fast. More than fast. So that’s reason our company name also changes and so organic growth and very wherever engineering opportunities we are grabbing their high precision. Our precision engineering is going there our growth engine next coming years.
Koushik Mohan
Thanks sir. And I’m really happy that you really clearly mentioned that in next six months the pledge also will be removed. So we are really really happy for that. Thanks.
Nageswara Rao Kandula
Maybe. Maybe I’ll try to early. Maybe I’ll try to help. Thank you.
operator
Thank you. The next question comes from the line of agam, an individual investor. Please go ahead.
Unidentified Participant
Yeah, hi. Thank you so much for the opportunity. I just wanted to know the revenue. Contribution from Glass Line Shell and Yogi Tech.
Nageswara Rao Kandula
Can you speak loudly sir, your voice is very low. Can you. Y
Unidentified Participant
eah, I’m audible now.
operator
Can you please use your handset please?
Unidentified Participant
Yeah, yeah, yeah. So yeah. Thank you for the opportunity. I just wanted to know that the. Revenue contribution from the shelling tube glass. Line heat exchanger for this quarter.
Nageswara Rao Kandula
This quarter?This quarter. Maybe some. How much? 4 crores or 5 crores?
Anjaneyulu Pathuri
Yeah, 5 crores.
operator
Thank you ladies and gentlemen. That was the last question for today. I now hand the conference over to the management for closing comments.
Nageswara Rao Kandula
Thank you. Thank you all. For joining us.
operator
Thank you on behalf of Goindia Advisors. That concludes this conference. Thank you for joining us. And you may now disconnect your lines. Thank you.