THE ANUP ENGINEERING LIMITED (NSE: ANUP) Q3 2025 Earnings Call dated Jan. 31, 2025
Corporate Participants:
Reginaldo Dsouza — Chief Executive Officer
Analysts:
Jaiveer Shekhawat — Analyst
Mohit Surana — Analyst
Vikram — Analyst
Rishabh Chaudhary — Analyst
Bhavya Sonawala — Analyst
Shyam Maheshwari — Analyst
Presentation:
Operator
Hello, ladies and gentlemen, good day and welcome to the Q3 FY ’25 Earnings Conference Call of the Anup Engineering Limited.
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 this conference, please signal an operator by pressing star and then zero on your touchstone phone. Please note that this conference is being recorded.
Thank you. Before we proceed to the call, let me remind you that the discussion may contain certain forward-looking statements that may involve known or unknown risks, uncertainties and other factors. It must be viewed in conjunction with our business risks that could cause actual results, performance or achievements to differ significantly from what has been expressed or implied in such forward-looking statements. Please note that the company has uploaded the results, press release, investor presentation and also the outcome of the Board meeting on the website of the stock exchanges and the website of the company.
I now hand the conference over to Mr Reginaldo D’Souza, Managing Director of the company. Thank you, and over to you, sir.
Reginaldo Dsouza — Chief Executive Officer
Yeah, hi. Thank you. Hello, everyone. Warm greetings from team Anup. I’m happy once again to have this opportunity to share with you all our performance for quarter three and Nine-Month period ending December 2024.
The Engineering Limited in-quarter three, we posted a revenue of INR170.9 crores, a growth of 33% year-on-year with an EBITDA of INR40.2 crores at 23.6%, a growth of 30.4% year-on-year for the quarter. The profit-after-tax was INR31.4 crores at 18.4%, a growth of 55% year-on-year. So for year-to-date nine-month period ending December 2024, the revenue stood at INR503 crores, a growth of around 28%.
EBITDA clocked is INR115.9 crores at 23%, a growth of 29.7% year-on-year and PAT profit-after-tax is at INR87.5 crores at 17.4%, a growth of 44.8% 8%. Please note here, we have a lower tax-rate due to some tax reversals of last year and ESOPs being exercised by a few members. This performance of the period ending December 2024 should give us a good confidence of achieving our plan for this year that is around 30% growth with an EBITDA of around 23%.
The pure exports has seen a good growth for the period at 51% and we should be closing the year with exports of over 50%. The working capital was healthy at 3.9 turns and net cash closed at INR35.6 crores. The sectorial revenue across industries for quarter three was quite interesting. We have oil and gas at 17%, 17%, petrochemicals at 20%, hydrogen at 45% and fertilizers at 14%. Of course, these are for a quarter and will normalize for the year. But what this clearly signifies is that our capabilities are fungible across industry sectors and is not dependent on a particular one.
So when the business exists in any of the industry sectors, we will be in a position to compete for the opportunity globally. The product provides revenue-share is in-line with what we had forecasted earlier. The exchangers at 57%, mostly coming from our Ahmedabad plant and 42% for vessels and reactors from our new Keda facility. Surely our Kera plant has started contributing well, which is seen from this 42% of vessels and reactors and columns coming out from that plant.
At Mabel engineers, most projects under manufacturing are planned for quarter-four deliveries and hence, no sizable revenue is noticed in Q3. For the period ending December, the total revenue build is about INR26 crores. And with deliveries planned for Q4, we should be on plan for around INR50 crore revenue that we have planned for Mabel Engineers. Before I proceed, I would like to make a small note of a small correction in the investor deck that we have posted.
On Slide number 11, a nine-month period FY ’25 breakup of revenue of 503 the domestic — the numbers stand a little corrected. The domestic share is INR208.4 crores, which is 41.4%. Exports INR258.4 INR58.4 crores versus 51.3% and as he said, and deemed exports is at INR36.6 crores, which is 7.3%. So this was just a correction on Slide number 11.
On the development side, there have been some good developments over the quarter — quarter three. First and foremost, on our foray into critical equipment business, we have successfully manufactured and delivered our first chrome moly vanadium modified material equipment. These were five numbers for an Indian client. We have also started manufacturing our first solid in equipment weighing 200 metric ton single piece at our facility for an export customer. In fact, this incidentally will be our highest single equipment value ever manufactured by Anu and the value would be over INR40 crores for one single equipment.
Now both these are in-line with our strategy to have calibrated strategic inroads into critical and complex methologies. The second development on our capacity expansion plan as committed over the last call, we have started the construction of our Phase-2 at Keda location. This will add one complete base and one open yard. It is expected to be operational in the 3rd-quarter of the coming year FY ’26.
So with this, we will have in all three complete base and one open yard at Keda capable of delivering about INR40 crores per year. So this will be about 33% of our master plan for Keda, which is to have seven manufacturing base. So at seven manufacturing days, that plant should deliver somewhere around INR1,200 crores and that’s how this INR400 crores with Phase-1 and Phase-2 would be about 33% of our total master plan.
Next, our operations at Mabel Engineers and the office at has stabilized quite well. With these installed capacities at our three manufacturing locations, that is in Ahmedabad, and Tamil Nadu. We have a capacity capable of delivering revenues up to INR1,100 crores to INR1,200 crores per year depending on the product mix on the order book. We will expand further in-line with our growth guidance.
Next, I would take a few minutes to talk on the future outlook. We are currently working on some interesting inquiry base largely for exports too. Domestic, as I mentioned earlier, has been sluggish for last 3/4 now, but we are seeing some movement recently from private conglomerates and we have been successful in getting some orders. PSE projects have not taken shape yet though. There have been some good announcement from Indian government both on refinery and petrochemical projects.
I’m sure we should see them surfacing probably over the next six to eight months. Middle-East is dominating with new gas projects and USA and Canada and Europe we see good hydrogen projects lined-up. But as you all know last two quarters has been awail and watch for many economies globally. Geopolitical developments, wars, speculation of our policy changes due to change of regime in a major economy, trade tariffs and many other factors have delayed decisions on some interesting projects.
But having said that, my view, these will settle down eventually and projects which are strategic import — projects which are of strategic importance for the energy transition roadmap will surely see the light. Our overall pending order book as on-date remains encouraging at INR831 crores and considering our plan for this financial year, it means we have an opening order book of about INR600 crores executable in the next financial year 2026. With two months balance into the year, we should be able to bag orders in-line with our growth plan for the coming year.
So our guidance for the next year FY ’26 continues to be at 25% to 30% revenue growth and with an EBITDA of over 20%. Exports will be in the range of 50% to 55%. So we as a business are mindful of the risks and challenges that can come our way. We are cautious of the geopolitics and how it could impact trade. We are cautious on the projects and the countries that we work with. We are cautious of the competitive landscape in India. We are also cautious of the aggression in the market to bag orders and we are watchful of the energy transition activities globally and also the trade tariff dynamics and many other factors that can play.
We at Anup, the Apex team just concluded our strategic business planning meet and have decided the future roadmap. I may not be able to spell out the strategy, but we surely have targeted a few new products and service verticals we will get into to diversify our product portfolio. I’ll surely share further details during our next year end call. So to conclude, with this position of nine-month period ending December 2024, we are on-track to achieve our revenue and profit plan for this year. The encouraging pending order book with some interesting opportunities ahead gives us a more certain visibility into the coming year FY ’26.
I am confident that at the strength of my team and with the continued support from our reliable partners and suppliers, we will be able to deliver on our plans. My sincere thanks to all my committed team members, our partners, our suppliers and all our shareholders for standing-by and trusting in us to deliver results. We are grateful for your trust and support.
Once again, thank you all for being present on this call and for your patient listening. Happy to have your questions now. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to please use handsets while asking a question. Ladies and gentlemen, we will now wait for a moment while the question queue assembles. The first question is from the line of Javier Shekhawar from Ambit Capital. Please go-ahead.
Jaiveer Shekhawat
Sure. Thanks a lot. And Rejee and team, congrats on another strong quarter. My first question is with respect to your order intake in the international markets. Just trying to understand what has happened on a sequential basis. Have you seen a dip in the order intake?
Reginaldo Dsouza
No, in fact, I would say that the exports have continued. The dip has basically come in the domestic side. Exports, over the last 1, 1.5 months in the last quarter, that’s November, December, of course, we have seen a little sluggish moment, mainly because the decisions were pending because of the change of regime and other tariff and other discussions on. But now we are seeing good traction and discussions. In fact, in January, you’ve got some good order booking of our fees.
Jaiveer Shekhawat
Sure, because I was just trying to see the order backlog that you had at the start of this quarter, which is about INR690 odd crores and which has come down to about INR540 odd crores as of, say, the December quarter, while the revenue booking was only about INR150 odd crores. So just trying to see, have there been any orders that have been canceled or that had gotten pushed out? If you could highlight any of that.
Reginaldo Dsouza
Yeah. So the revenue book is INR170 crores, we have to be precise, 170.
Jaiveer Shekhawat
Only on the exports market. I was actually meaning on the exports market.
Reginaldo Dsouza
Okay, okay. So you are talking about the exports. Yeah, so there has been some sort of — there was a large order which we had booked close to about INR20 odd crores and there was descoping and there was short closure of the order by about INR60 crores. And that’s the reason you’re seeing that difference in export. But we could — of course, we have safeguarded our margins and we could quickly continue our order booking and fill those slots from some domestic and some international markets.
Jaiveer Shekhawat
Could you just explain or substantiate as to why there was a cancellation or the short change what you said?
Reginaldo Dsouza
So that was an order for a project in United States and it was dependent on a feedstock. So it was the feedstock was ethan and there were some challenges in the feedstock availability the assessment probably at the customers and so we don’t have the actual details from the customer side, but what we understand is currently, currently they have descoped and short close that, maybe that they are looking at-once the feedstock revives somewhere in the quarter three of next financial year, for us, it may come up again. So we will keep our fingers crossed for that. Of course, if it revives — if it somewhere in October, November, we should be the natural choice for that since we already completed the half in terms of design and other stuff.
Jaiveer Shekhawat
Understood. And currently, I mean, given the momentum that you’ve seen over the last few quarters, what’s the usual order intake trend that you’re seeing on a quarterly basis on the exports market?
Reginaldo Dsouza
So on the export side, we should be getting traction over a quarter close to about INR110 crores to INR115 crores per quarter.
Jaiveer Shekhawat
Okay, understood. And it’s also quite encouraging the way hydrogen has sort of shaped up for you. So could you call-out what has — what has been the overall share of hydrogen-related projects in the nine months and then what’s your expectation going-forward?
Reginaldo Dsouza
Yeah. So by the nine months also, it’s been about 30% of our revenue comes from hydrogen. And by the year end, we believe that it will remain. Of course, in the quarter, it looks a little skewed. It looks 45% for quarter three. But as I said, over the year, it should normalize. And based on the numbers we have, by the time we complete the quarter-four, hydrogen should have close to about 30% to 32% share of our total revenue. And just to just to add, it is mostly blue hydrogen with a small share of green hydrogen.
Jaiveer Shekhawat
Understood. And the expansion that we’ve seen on the gross margin side, is that because of higher export mix or is that because of higher hydrogen mix in the quarter?
Reginaldo Dsouza
I would say both when I say both, it’s like one is of course, export because as I said, export on the forex side, we are a little conservative when we book the order. So generally, we tend to release it at the end of execution on the ForEx side. And second, being on hydrogen, we see a lot of exotic materials where we see lower competition as compared to low material grid.
Jaiveer Shekhawat
Right. And in relation to your manufacturing tie-up with Graham, have you been able to crack into any of your new proprietary products and in terms of how you’re thinking about the overall opportunity over, say, the next two, three years?
Reginaldo Dsouza
Yeah so when we signed the agreement, we were actually in the process of executing a project for them for an project in India. We just completed the dispatches last month. We’ve got couple of inquiries right now that we are working along with them for exports basically. And that was our objective. Actually signing the agreement, the main objective was that domestic business would continue, but we wanted to tap on the international business. And unfortunately, that’s what we are seeing on the table right now. Of course, it’s not getting — it’s not got into an order shape yet, but there are inquiries for exports which we are looking at.
Jaiveer Shekhawat
Sure. Anyways, look-forward to hearing more possibly in the coming quarters about newer products and services that you had decided on your strategy need. Anyways, thank you so much. Thanks for answering and all the best.
Reginaldo Dsouza
Pleasure. Thank you.
Operator
Thank you. The next question is from the line of Mohit Surana from Monarch Networth Capital Limited. Please go-ahead.
Mohit Surana
Sir, thank you for the opportunity. A few questions. One, in the last con-call, you mentioned that we execute fixed-term contracts. So basically, I wanted to understand if there is any volatility in the raw-material prices, how do we manage that? Second question is with respect to the capacity utilization. If you can give some sense of how was your capacity utilization for this quarter and for nine months? And the third one I will ask once the other two are addressed.
Reginaldo Dsouza
Yeah, hi. Thanks for the question. So to answer to your first question, yes, we have only six contracts and as I would have mentioned earlier, we built-in all the costs at the estimation stage itself and most of our critical orders, we do back-to-back with our vendors as well. So from that sense, most of the critical orders where we feel that there could be a volatility. We go back to that with our vendors and it’s from that sense, our prices are protected.
Mohit Surana
Understood.
Reginaldo Dsouza
And the second part in terms of the capacity utilization, of course, as you know that we put up the additional capacity at Keda in the last September. So if you add-up both the capacities together, we would be close to about 70% to 75% capacity. And as I said earlier too, we always keep about 10% capacity for short-term shutdown equipments, which are generally more profitable.
Mohit Surana
Understood, sir. So just to again talk about the. I mean, you mentioned that we already have one complete ba and one open yard and the revenue potential from that will be around INR40 crores. That’s what you said, right.
Reginaldo Dsouza
What I said was that in our Phase-1, we have two, which are already commissioned up and running, right. We have started construction for Phase-2 of where again we are building two-ways, but one will be fully covered and one will be open yard. So when you look at the end of probably September of this year, where we will have that commission, we will have three complete base of 200 meters long covered under roof and one open yard. So effectively four days, three covered, one open yard and that should give us a revenue of close to about INR400 crores.
Mohit Surana
Okay. Understood. Understood. So the last question is with respect to the financials. I see your consolidated PAT is lower than your standalone PAT. Is it like we face some losses in. Can you just throw some light on that?
Reginaldo Dsouza
Yeah. So, as I said in my in my initial comment, all the manufacturing that we have done in-quarter three, they are all dispatchable in-quarter four. So there was negligible revenue intake into quarter three for. We have a large order for Reliance getting executed. We have already started the dispatches in this month that is in the month of January and it will go up to March to complete that purchase order. So most of the revenue will be booked in-quarter four, which will get us back to close to about INR50 crore revenue from, which we had planned and close to about 15% EBITDA.
Mohit Surana
Understood. Understood. Thank you, sir. That’s all from my end. Thank you.
Operator
Thank you. The next question is from the line of Vikram, an individual investor. Please go-ahead.
Vikram
Yeah, hi. Excellent results again. So congratulations. A quick question on March ’25. Where do we see ourselves ending? I mean, at this stage, we’re close to what INR500 crores for the nine months. So any sense of where we’ll end-up with March ’25 numbers?
Reginaldo Dsouza
Yeah. Thanks. So we will end-up in-line with our guidance of 30% growth. So putting the numbers together, we should be about INR725 for Anup engineering.
Vikram
Understood. And just 50.
Reginaldo Dsouza
Standalone, and Mabel, of course, as I said, would hit a number of close to about INR50 crores, but about INR20 of that will not be reflected in our books because that was before we closed the share transactions.
Vikram
Okay. So what you’re saying is the chances are consolidated number for March ’25 will be INR750.
Reginaldo Dsouza
That’s correct.
Vikram
And so that means the last quarter will be a huge quarter in terms of size and INR250 crore kind of a number.
Reginaldo Dsouza
That is correct. Anup and put together.
Vikram
Yeah. And we have the capabilities in terms of infrastructure and all the way with all to kind of deliver that, right?
Reginaldo Dsouza
Yeah, absolutely, absolutely. We have all the projects lined-up. We know what’s going to get dispatched and ready before March, we know from as well. And in terms of capacity, if you look at, as I said, the current capacity is about INR1,000 crore and moment we complete this construction that we have started, it will be INR1,200 crores. So I’m pretty sure that should give you the confidence in terms of our capacity to execute.
Vikram
Excellent. And in terms of — I know you mentioned that you’ve just finished a strategy workshop and obviously you can’t outline everything. But in terms of the key highlights, would there be different products, would they be new technology partners? Would it mean getting into different markets? Any sense on that?
Reginaldo Dsouza
Yeah. So it definitely is going to be different products. That’s the reason we said production. So it will be on product and services both. And mostly what we are looking at is mass volume kind of products. So in a sense that it continuously keeps the volume going, what we do today is mostly customized every order we need to design and kind of a stuff. We want to look at products which are more sort of not very customized to some extent customized, but more generalistic in nature, which gives us a little bit of comfort in terms of engineering and others. And I’ll add to your earlier question, I’m sure you would have looked at the history, last quarter is always a very, very good quarter.
Vikram
No, but this is exceptionally good, 250 is a big number. So that’s that.
Reginaldo Dsouza
Yeah. No, I know what happens is, see, generally you would have heard me saying Q1 and Q3 are generally not that great quarters in a sense, we have lot of absenteeism because of festivals and other stuff, whereas Q2 and Q4 are generally the peak quarters with full attendance and so we have a good drive-in terms of project progress.
Vikram
This is very comforting because many managements in the last few days have had changes in their guidance. So it’s great to see that you maintain the guidance and it is going to be a heavy quarter and we are already midway through. So I guess the level of confidence is high. So thank you.
Reginaldo Dsouza
Pleasure. Thank you for your questions.
Operator
Thank you. The next question is from the line of Rishabh Choudhary from Capital. Please go-ahead.
Rishabh Chaudhary
Hi, sir. Am I audible?
Operator
Yes, please go-ahead.
Rishabh Chaudhary
Sir, thank you for the opportunity. Could you shed some more light on the order book visibility for the coming year and how we’ll achieve our revenue target of 30% growth year-on-year and where do you anticipate the growth coming from?
Reginaldo Dsouza
Yeah. Yeah. Hi, Risha. Thanks for the question. So as I said, we see a good traction, of course in the in the export market for now, the inquiry bank that we are holding, we are holding close to about INR900 crores kind of an inquiry bank as on-date. Of course, 70% is coming from exports. And domestic, we see a revival. We’ve got couple of projects on the cards with inquiries from customers coming in. So we should be good for the next two months. And in fact, January also has been good in terms of some order booking, both domestic as well as exports.
So we should be very comfortable for 30% growth for next year. As I said, we already have 600 plus our sleeves for next year, executable into next year. And with the pending order book position and the visibility seen in the market today, we should be comfortable for a 30% growth next year. So where we are seeing the growth in export, it is largely coming from the hydrogen stream, which is largely fueled by US and Canada and to some extent some European countries. Middle-East is throwing up a lot of projects on gas.
Currently also we have a large contribution of gas projects from Middle-East and we have few inquiries past lease for gas as well. And in domestic, of course, the private players are mostly on the petrochemical side right now, the PVC, VCM kind of projects from Reliance and Adani. When the PSUs start, which are already announced couple of projects, they would be mostly on the refinery and petrochemical projects-based on the guidance from Indian government. So these are the sectors that we see we should be doing some good work. So hydrogen understood you can continue. Hydrogen, I believe will continue to be about 20% to 30% kind of a contribution in our growth journey.
Rishabh Chaudhary
Understood, sir. Understood. That was quite an accurate. Thanks a lot for that. And secondly, the EBITDA margin guidance that you gave was about 20% plus as against the 23% plus, we are looking at this 23% what we are looking this year. So any specific reason for guiding for a lower-margin in the coming year?
Reginaldo Dsouza
Last specific. I will only say that we are a little conservative in a sense that since growth is on — is on the agenda, we would not compromise growth and that’s the reason we are being a little conservative. Otherwise, we should be good around this number that we are even this year.
Rishabh Chaudhary
Understood, sir. And just one last question. Typically, once you book an order, what is the kind of lead-time we see for it to translate into execution on our revenues?
Reginaldo Dsouza
Are you asking from the lead or are you asking from the inquiry?
Rishabh Chaudhary
Yeah, from an inquiry. Once an order has been booked from then to — when it translates into revenue?
Reginaldo Dsouza
Okay, okay. So as on today, the product portfolio that we deal with, it is anywhere between 11 to 12 months, average. So some products could be eight to 10 months, some could be 12 to 14 months on an average 11 to 12 months.
Rishabh Chaudhary
Okay. Understood. Understood. All right. Thanks a lot, sir.
Reginaldo Dsouza
Thank you. Thank you.
Operator
Thank you. The next question comes from the line of Mohit Surana from Monarch Networth Capital Limited. Please go-ahead.
Mohit Surana
My questions are already answered. Thank you.
Operator
Thank you. The next question is from the line of Bhavia Sonawala from Samasa Capital. Please go-ahead.
Bhavya Sonawala
Hi, thank you for the opportunity. Am I audible? Are you audible?
Reginaldo Dsouza
Yes, please go-ahead.
Bhavya Sonawala
Yeah. So my first question is regarding the GRAM agreement that we signed. Just wanted to understand, do you see more opportunity where we are able to manufacture on behalf of our clients like, do you see more opportunity like this coming ahead in export as well as domestic markets.
Reginaldo Dsouza
Yes there are in fact we are in discussions with some end-users and customers so we are looking at opportunities like this because it helps us to book our volume rather than we having to struggle every time for an order. So we prefer to be exclusive manufacturers for our customers like Graham. So yeah, opportunities are on the table once it materializes, we will surely come back to you.
Bhavya Sonawala
Okay, and these are specifically for export or we are looking at a domestic and export mix altogether.
Reginaldo Dsouza
Yeah. So these opportunities like Graham, right, they are probably the proprietary equipment holders. So they do projects globally, including India, same with Graham. But our objective would be once associated with licenses like Graham, it gives us an opportunity for — to tap even into the export market. Domestic any which ways we can compete and probably if you are competitive, we can take the order from them. But I think such a strategic tabs helps us to get a more into export in addition to the domestic market.
Bhavya Sonawala
Okay, understood. And my just last question probably might be difficult for you to answer, but with the new administration in the US and they have taken a stand against the renewable energy in terms of solar and when do you see any effect in future going ahead to solar — to hydrogen and probably other nations following it. Any kind of thoughts that you can share.
Reginaldo Dsouza
I think it’s too early to comment of course we will wait for policies to be announced but having said that, if you look at our product portfolio and the industries that we serve, solar and other renewables does not impact because we are not in that field. Hydrogen is, but we are on the industrial hydrogen, which I believe is here to stay. So from that perspective, not a direct impact. But yes, when economies get impacted, we will have to be cautious and vigilant.
Bhavya Sonawala
So thanks a lot, sir, and all the best.
Reginaldo Dsouza
Thank you so much.
Operator
Thank you. The next question is from the line of Balkrishna Ajutia from — I’m sorry, an individual investor. Please go-ahead.
Bhavya Sonawala
Hello, Mr. Am I audible?
Reginaldo Dsouza
Yes.
Bhavya Sonawala
MR. Disha, congratulations for your good set of number to you and your team. I just want to know — I just want to know two few things. One is the current debt level in the company. And second thing, this current expenses plan is going on. So sir, I want to know it is fully I say by internal accruals done or it will be done by-10.
Reginaldo Dsouza
So thanks for the question. We are a net-debt free. So we don’t have any debt — debt net and whatever investments that we are going to do even in Keda now for Phase 2a, it will be completely from internal accrual. I hope that answers your question.
Bhavya Sonawala
Yes, got it. Thank you.
Operator
Thank you. The next question is from the line of Shyam Maheshwari from Aditya Birla Mutual Fund. Please go-ahead.
Shyam Maheshwari
Yeah, thanks a lot. Hi, sir. Congrats on a great set of numbers. Hi, my question. Yeah. One question on the US side, again, I think you mentioned it in your opening remarks as well, but just wanted to understand a little bit more in detail. So as far as we know, the Trump has now kind of stopped any further disbursements when it comes to the IRA and that involves your hydrogen ecosystem as well. So is there any sense that you’re getting from your end-customers as to then maybe kind of halting or taking a more cautious approach towards their ongoing projects, particularly in the US.
Reginaldo Dsouza
Yeah. So we’ve heard this. We’ve also read these policies. Now what we understand from our customers is whatever what is that we are executing, these are large multinationals and end-users basically. So they have invested their own fund to get this project going. And we don’t see. So even now, of course, there could be some other technical reasons why projects were to get delayed because what happens is these items, once we supply this equipment, these have to be modularized in a package.
And these modules are generally will be modules and kind of moduled in places like China or Indonesia and other places. Now the tariff structure will definitely greatly impact them because finally, it’s a landed cost which will impact for the End-User. So they are cautious in a sense, waiting and watching as to what would be the tariff structures because based on that, they will have to define from which countries they need to buy.
And I think the cautious approach that I mentioned in my opening remarks is basically what we are seeing is from the trade tariff perspective, the end-users are a little more watchful and they are waiting for some concrete understanding on the trade tariffs. Other than that, in terms of projects, I believe hydrogen is here to stay. We all know. We are talking about industrial hydrogen gas and we don’t see any project. In fact, in Europe, we are getting good opportunities in hydrogen at the moment. So I hope I answered your question.
Shyam Maheshwari
Yeah, yeah. I said how much would US be as a percentage of our hydrogen business.
Reginaldo Dsouza
So of the overall hydrogen business, the 30% that I spoke about, US standalone this year would be close to about 26% to 27% of that. Okay. Interesting. We have completed the part we are going to execute in this quarter. So we should be good at that.
Shyam Maheshwari
So we have significant business from other geographies as well then, like 70% of the hydrogen business is from other than US.
Reginaldo Dsouza
Understood. So even we have good — apart from hydrogen, we have very strong business. So currently, the biggest account for us today is coming from Middle-East. Middle-East two countries, that is Abu Dhabi, which is from, Abu Dhabi National Oil Company. And the second is Saudi Aramco, which is in Saudi Arabia. And I’m sure these two companies are like two countries. So most reliable and that’s why I used the word earlier that we are very cautious on which countries and which companies we work with.
Shyam Maheshwari
Interesting. Perfect, sir. Thanks for the detailed explanation and all the best. Thank you so much.
Operator
Thank you. Ladies and gentlemen to ask a question you may please press star and 1 thank you. To ask a question, ladies and gentlemen, you may press star and 1. As we have no further questions, I would now like to hand the conference over to Mr Reginaldo D’Souza for closing comments. Over to you, sir.
Reginaldo Dsouza
Thank you. Thanks. So I once again take this opportunity to thank my wonderful team at Anuk and Mabel and to each and everyone helping us deliver this performance. A big thank you to all of you, our shareholders for your trust and support as always. Thank you. And on behalf of my team, I wish to all of you happy days ahead. Take care and stay healthy. Thank you so much.
Operator
Thank you. On behalf of the Anup Engineering Limited, that concludes this conference. Thank you all for joining us. You may now disconnect your lines