THE ANUP ENGINEERING LIMITED (NSE: ANUP) Q3 2026 Earnings Call dated Feb. 04, 2026
Corporate Participants:
Reginaldo Dsouza — Managing Director and Chief Executive Officer
Analysts:
Unidentified Participant
Chetan Vora — Analyst
Sameer Thakur — Analyst
Varun Mishra — Analyst
Chirag Pachisia — Analyst
Mohit Surana — Analyst
Ganeshram Rajagopalan — Analyst
Sonal Minhas — Analyst
Presentation:
operator
Ladies and gentlemen, Good day and welcome to the Q3 and nine months ended FY26 earnings conference call of the Anoop 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 the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. 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 risk 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 have uploaded the result, press release, investor presentation and also the outcome of the board meetings on the website of Stock Exchange and website of the company. I now hand the conference over to Mr. Reginaldo D’, Souza, managing director and CEO of the company. Thank you. And over to you sir.
Reginaldo Dsouza — Managing Director and Chief Executive Officer
Thank you. Hello everyone. I welcome you all to this conference call on our performance for quarter three and nine month period ending December for the financial year 2026. The last few months has been quite eventful with reference to trade agreements between countries, geopolitical events, anxieties over aggression between countries and many other global material events. India US Trade deal was also on the waiting far longer than we all expected. These events did impact the business sentiment especially when we as a business were equally focused on exports. Given these macro challenges both on geopolitical and economic fronts over the last few quarters, I believe your company has delivered a decent performance.
Let me now share with you all our company’s performance for quarter three and nine month period ending December. For the financial year 2026, the consolidated revenue achieved for quarter three is 206.9 crores. A growth of 20.3% quarter on quarter and at an EBITDA of 44.1 crores. A growth of 13% quarter on quarter. For the nine month period ending December, the consolidated revenue is 614.4 crores, a growth of 20.2% year on year with an EBITDA of 135.9 crores, a growth of 17.5% year on year. Profit before tax is at 112 crores. 112 a growth of 12.2% and the profit after tax is 85.3 crores.
Without the tax reversals, growth of 2.3% at the PAT percentage level we are 2.4% lower year on year mainly on account of three factors, an EBITDA change of 0.5%, the interest and financing cost of 0.6% due to our higher working capital block and the tax change where last year we had lower tax due to ESOPs of 0.9%. So these all added to a pat percentage level of 2.4% lower as compared to last year. The return on capital employed ROCE is at in the expected range of 21.2%. On the working capital management I believe we could have done better.
The average working capital was 367 crores at 2.2 tonnes. This is higher than expected mainly on account of two factors, one the lower customer advances and the second higher debtors owing to long cycle orders under execution. This is set to improve with better new order booking thereby improving customer advance positions and closure of high value purchase orders in the coming quarters. We expect it to be closer to average working capital terms of 3 or little higher by the year end. On the other expenses head it is higher but fairly as planned for the year at 24.5% of revenue as against 18% year on year.
The rationale for the increase is number one royalty of about 1.3% as we had many licensed proprietary equipment during this period mainly helical heat exchangers for lammas, heat transfer and EM waffle heat exchangers for Brahmana and roller technology which we delivered in the last quarter about 1.5% in labor and subcontracting costs, 2.2% on contractual expenses due to timelines and site back charges and 0.5% increase in freight as there were multiple over dimensional export consignments needing expensive logistics mowed up to the ports of India. Please note that these all cost hits are factored in our plan and estimation and hence does not impact our planned profitability.
Our Exports was at 328 crores which is 63.4% of our revenue. On the industry sectors that we serve, oil and gas and petrochemicals still dominate with about 73% of the revenue. In terms of the product portfolio heat exchangers accounted for 57% of the revenue. Silos and centrifuge saw an increase to 7%. So on the product portfolio side heat exchanger still dominates our revenue. On the New order booking the new order booking in the near past has been very encouraging especially on the domestic front. The pending order book as on date is at 550 crores. It would have been Much better if not for some good probable finalization.
Moving to this month we have few good level order negotiations which is expected to be closed in the near future. Considering our execution rate required for quarter four, it implies that we have about 300 crore plus worth orders for execution in the next financial year that is FY27. Also, with a healthy firm inquiry pipeline of around 1100 crores we shall have better opportunities to converge. Furthermore, with the positive India US trade deal it should open up opportunities and even out anxieties created over the last few quarters. We should see revival of discussions with our customers for the US bound projects converting into meaningful business in the next few months.
Our continued focus on exports should surely help in building the order book. Moreover, the current $INR rate surely helps us to be more competitive. On the contribution from all our three locations, I am glad that they are all contributing well to the revenue growth. The Ahmedabad plant is at a YTD revenue of 405 crores that is 66% of the revenue Keda at 186 crores that is 30% and Maple Engineers with 23 crores at 4%. Just to note, Maple for this year has major revenue coming from site fabrication work which is in progress and hence we’ll see higher revenue in quarter four as compared these revenue contributions from all our three locations provides us the confidence and re emphasizes that our investments are now delivering results.
On the CAPEX front, we have completed the phase two expansion at Kedah and with this we now have 20,000 square meters of fabrication area out of which 5,000 square meters is an open yard. This means our Keda plant now has the capacity to generate about 450 crores revenue per year. Based on the product mix, we do not foresee any major CAPEX soon for our organic growth towards building capacities with all our three locations, we now have a sufficient capacity built for our FY27 growth plan. On our long term strategies I am glad to inform that on the strategy of product diversification and geographical spread we have made some good progress in the last quarter and I would like to mention them subsequently.
First, we have made an entry into the long awaited nuclear business with a successful order for NPCL Kaiga project from a renowned EPC company. Order value is in the range of 20 to 30 crores. The focus now would be to execute this order well which shall set the path for further expansion into more critical nuclear business. Second, our entry into the thermal power business we have bagged an order for NTPC thermal power project to supply good number of low pressure feed water heaters for their Navi Nagar and Gadarwa project. Here the order value is in the range of 20 to 30 crores.
Again, considering the fact that there are three more large projects expected in the near future, this experience will surely help us secure more business on thermal power projects. Third, our entry into precision machine components. We have successfully backed an order from GE for supplying critical components for their turbine frames. Order value, though small has the ability to provide visibility through for the next two to three years of business. We shall strategize further on this business line once we complete this order execution. The deputation of our new sales and marketing head position in Dubai is contributing well to seek leads from Middle east and other GCC countries.
Also our services business that is Anup Technical Services two have made good progress. We have booked our 10th order over the last six months executed five and five are under execution. Though small, these are helping us build our capabilities and credibility with customers for larger play in the near future. We as a business are very optimistic on the growth of this business vertical which should be highly profitable on our sustainability initiatives. As we mentioned earlier, both our facilities in Gujarat are now rooftop solar powered thereby lowering our carbon footprint. This shall mean business sense for us as it will improve our competitiveness in the European market when CBAM which is carbon border adjusted tax kicks for supplier evaluation in the near future on the overall broader business outlook, we surely see a good traction in the coming months with inquiry inflow from Middle east and domestic markets.
Further, with the US India trade deal in place, we shall see good opportunities coming through. We hold a firm inquiry bank of around 1100 crores at this point in time. Thus, at the backing of this robust inquiry pipeline, we expect good business opportunities in the near future. Therefore, considering overall macro factors, we continue to maintain our guidance for this year of revenue growth of 15 to 20% and EBITDA in the range of 22% with exports of over 50%. We as a business remain very optimistic of the future business opportunities at the backing of a strong domestic push on infra and energy security trade deals with major economies in improving our competitiveness and our latest inroads into new products and geographies providing that strong visibility.
Having said this, being a project industry, we shall be watchful and cautious of the developments globally especially on geopolitics. On long term strategic initiatives towards sustaining growth inorganically, we have been working over the last many months on diversification and strategic opportunities. As mentioned earlier, we are looking at opportunities in the space of energy related technologies, specialty, chemical sectors, package systems and many more. We will keep you all informed of the progress as we get closer. So with these opening remarks, I wish to thank you all for your patient listening. Now I would be happy to answer your questions or any clarifications required.
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 N1 on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use 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 chetan Voda with abaskis asset managers. Please go ahead.
Chetan Vora
Yeah, hi Regist.
Reginaldo Dsouza
Hi Chetan.
Chetan Vora
Yeah, let me just wanted to understand now post this u. S. Clarification. How do we see the situation for us? Because us for us last year was close to 15 to 16% of the overall revenue and 30% of the exports. And this year it has been minimal enough. So how do we see situation going ahead for us particularly?
Reginaldo Dsouza
Yes, chetan. So as rightly said with this clarity emerging now, as I mentioned in my last call as well, it was never with US Customers. What was that percentage? Right. Even at that percentage we were quite competitive as compared to US Fabricators or any other. It was more about uncertainty in terms of what’s going to be the tactical tariff at the end of 12 months when we dispatch. So now with this trade deal in place, I think there is far more certainty in terms of what would be the landed cost for our customers. And we surely hope and are confident that the discussions will reignite now for all the projects that were basically stalled for a few quarters now.
Chetan Vora
Okay.
Reginaldo Dsouza
And for this year anyway, as I mentioned, we did not have any order booking from us which was in our plan and the growth plan for this year. So it whatever happens now henceforth with the discussions and positive moment should be an upside and better as compared to this year.
Chetan Vora
Right. And now coming to the order book, the order book has gone down to 550 crores which was 740 crores last year. Now how do we see the, you know, the execution visibility because in the coming quarter we will be executing nearly about 300 crores and we will be getting another 200 crores order in flow. So how do we plan to end the year and does it mean that the next year growth is getting challenged? Reggie?
Reginaldo Dsouza
Yeah, so you’re right on the order booking as compared to what we opened this year with an as on today, it’s about 550 crores. That’s broadly Chetan, because if you remember, quarter one was literally almost, I mean to say negligible quantum that came in obviously because of the exports largely getting impacted and domestic, there was nothing at that point in time and which we visualized at that point in time that domestic should revive. In quarter one it did not, of course, but then quarter two was much better and quarter three is also in that strike rate range of 200 crores around that we need every quarter three months block to come in.
So it has improved. If you look at the pending inquiry book position of 1100 crores, this is one of the best that we ever had. Our bets have been close to 1100-1200 crore inquiry bank positions. The problem was finalizations of those inquiries because of these uncertainties. Now with that at our back, I am pretty sure the finalizations should go forward in the coming months and we should be able to hit a strike rate much better than what we have done in the past. So we are hopeful and optimistic that business would turnover growth, exact number.
I think we should wait for the quarter four to get over because for quarter four anyway, we have the complete order booking with us. We will wait for the next two months. How it pans out in terms of the order booking, which we are very optimistic about and then define the growth for the next year. But growth will surely be there.
Chetan Vora
Yeah, growth will surely be there. That is right. Okay, but what about the demand environment both in the overseas market and the domestic market as of now? Because in the domestic market we saw a decline in the revenue. Sorry, in the exports market.
Reginaldo Dsouza
Yeah, so export market it was. So initially when we opened up the year, actually domestic was down, export was better. Then when we went through this year. If you see the last year domestic was literally nothing for us. All the order booking mostly came from exports. This year domestic has picked up because most of the order booking and you would see that ratio changing from our pending order book positions. The domestic is much higher than now export. That is precisely because over the last two quarters there has been lot of uptick in domestic order booking.
And now with this uncertainty opening up, I’m pretty sure even the exports will pick up. And I’m sure you should get the confidence from the inquiry bank position of 1100 crores, which is roughly about 60% exports and 40% domestic. Okay, all right. And just to add to that, the major uptick that we are seeing, of course in the international market is on the gas, gas side, gas business and in the domestic we are seeing mostly in the petrochemicals and power. Of course power there are limited three or four projects but that itself is a pretty high volume in terms of numbers.
So that’s a broad breakup if you want to know which sector is kicking in. So exports is largely the gas based and domestic it is pet chem and thermal power to some extent. Right.
Chetan Vora
And now as in where we are standing right now post this clarity of again I’m just repeating and the domestic traction what you have started gaining now. Should we assume that both the engines are, you know as you also said in your opening comment also that both the the vertical should start seeing a good trajectory of growth.
Reginaldo Dsouza
Yes, for sure. And added to that Chetan, with all these new products that we ventured out like nuclear for the first time thermal which we got in right time because we will be well placed now for the next three projects that are coming in. And at the same time the anup technical services which is a high profitable business which we have forecasted that it should be in two to three years close to 200 to 300 crore kind of a business for us it’s about 40% margin business. So these three verticals also should give us a lot of confidence that we have spread deeper into products and also wider in terms of geographies.
Chetan Vora
Right, Right. Reggie, thanks. Thanks. I’m done.
Reginaldo Dsouza
Thank you. Jetta, nice talking to you.
operator
Thank you. Ladies and gentlemen, in order to ensure that the management is able to answer questions from all participants, please limit your questions to two per participant. The next question comes from the line of Sameer Thakur with Ambed. Please go ahead.
Sameer Thakur
Hi. Thanks. Hi Ajit. So my first question is you already talked about the technical services and all. So if you can just touch upon the high volume products and MRO and how is that shaping up. And if you think about the business mix from these three service, MRI and high volume products, how should we think about in next two, three years or so? That’s the first question.
Reginaldo Dsouza
Okay, so let me start with the technical services business which is nothing but health check assessment of the equipment providing entity services and repairs of the equipment website. This is the broad three domains under this services. As I said this should be according to us anywhere in the range of 30 to 40% kind of a profitability business. And our forecast for this business internally is to reach about 200 crore turnover in the next three years. That’s the kind of focus that we have for this business in terms of high volume which we said it is in the framework of aches, PSA adsorber vessels, maybe some sort of skits and modules.
This again is in the framework of EBITDA 15%. It will not be as high as conventional products but they would give us scale in terms of volume. So that is fact that about 200 to 300 crores for the next three years again that vertical and our conventional business would be close to about 1000 crores. That is where we would like to maintain it. Because these are very complex, takes a lot of management attention and also critical in terms of execution. So 1000 crore, 200 crores and 200 to 300 crores. That’s kind of visibility in these three verticals maybe over the next three to four years kind of on horizon.
Sameer Thakur
Okay, thanks. And the pipeline which you talked about, the 1100 crore pipeline. So you said the strike rate should be higher. Any number on that.
Reginaldo Dsouza
Normally our triplet historically has been anywhere between 15 to 20%. What we feel with this focus today and with our spread on the product mix it should be anywhere in the region of 20 to 25%. We would not like it to be higher. In fact we would like to grow the inquiry pipeline because we would like also our profitability to be maintained with a higher strike rate. We can definitely get a strike rate but then I’d have to compromise on my margins to get that business. So I would like it to be in the region of maximum 20 to 25% and improve the inquiry pipeline and keep that strike rate at that level.
Sameer Thakur
Okay, so will it be fair to assume that we would end up the year with somewhere around 600 crore backlog or something?
Reginaldo Dsouza
That’s what we are planning for your Right.
Sameer Thakur
Okay, thanks. That was all from my side.
Reginaldo Dsouza
Thank you.
operator
Thank you. The next question comes from the line of Varun Mishra with VM Chambers. Please go ahead.
Varun Mishra
Hi, Am I audible?
Reginaldo Dsouza
Yes Varun, please go ahead.
Varun Mishra
Hi. Thanks. Thanks for the opportunity. I think my question is broadly, broadly answered but just.
Reginaldo Dsouza
Hello Varun, we are not able to hear you. Hello. Are you all able to hear us?
operator
Yes sir. The current participant has left the queue. We’ll move on to. The next participant is from the line of Chirag from SKP securities. Please go ahead.
Chirag Pachisia
Thank you for the opportunity. So I just want to ask which segment we are targeting in the nuclear segment that we have forayed into.
Reginaldo Dsouza
So our target is basically on the heat exchanger side and the columns and vessel side. So the current order that we have backed is on the columns and vessel Sides and we would be making our attempts to get further deeper into heat exchangers and the critical primary island equipment.
Chirag Pachisia
Okay, so what sort of an opportunity are we seeing in this particular segment?
Reginaldo Dsouza
So let me mention why we have taken this first step after many, many years. So as you know, nuclear is a very, very critical domain in terms of execution. And we were wanting to get into this for many, many years now. But after having put up our facilities and capabilities in place, we thought it is the right time now to move into nuclear. And that’s how we ventured into. The first step taken is to get into these columns and things because they are comparatively easier. I’m not saying it is very easy, but comparatively easier. So we want to execute this.
Of course the start has been good so far. It’s been I think four months into this po. Three months into this po. Sorry, the start has been good. I think maybe another couple of months and we shall get more confidence in terms of venturing into other opportunities for npci. This also would open up those for other nuclear opportunities outside India. Not only in India, but we just want to wait for a couple of months more to get that confidence.
Chirag Pachisia
Got it? Got it. Thank you sir. That’s it from my side.
Reginaldo Dsouza
And just to give you an indication of what opportunities this field can open up, I’ll give you a simple product like a steam generator which is required for NCCL projects. One set is in the range of 100 to 500 crores. But of course we need to work hard to get there, build our credibility. And I think we’ve taken the first step moving in this direction.
Chirag Pachisia
Congratulations sir.
Reginaldo Dsouza
Thank you.
Chirag Pachisia
Thank you.
operator
The next question comes from the line of Mohit Serana with Monaj Network Capital. Please go ahead.
Mohit Surana
Thank you for the opportunity. Ravi, you just talked about npcil. Can you also elaborate on the other two product diversification spread that you talked about? Entry into the thermal power as well as into pressure and engineered components. So some bit more color on these new ventures that you have taken and what kind of potential do you see for the business to gain traction into these?
Reginaldo Dsouza
Yeah, Mohit. So the first one was the thermal plant where as enough engineering we were not qualified to make any products under NTPC through this. We had to go of course through the, through the approval procedures and finally we got qualified and we were successful in pegging this order. As I said it was in the range of 20 to 30 crore bracket. Not a big one for now but what it does is that it gives us that step into number one getting qualified with NTPC and second move to the next category which is high pressure heat exchangers which is almost three to four times value of this product.
So that’s what we are aiming at. There are next two more projects, big projects upcoming. One is for Adani Thermal Power where the order has been already backed by LNT and Torrent Power. These are the two big and there’s a third one which is, which is little confidential which we know of that come up. So this gives us a step and a possibility to participate in the negotiations for low pressure and high pressure feed water heaters. The overall number for all these three projects for the feedwater itself could be in the range of a ballpark number.
Of course it would differ a little on the design but it would be in the region of 700 to 800 crores for the three projects put together. Of course we will have to participate, be competitive and prove our credentials on this first order that we have taken and I believe we would be up against three to four competitors in India.
Mohit Surana
Understood.
Reginaldo Dsouza
The next one was the machined specialized precision components. Again this was a complete diversification for us. We had strategized this for many, many years. But we thought this was the right time to get into because turbines, as you know, both thermal and gas power plants, the number of power plants that are coming globally is in very large numbers. And GE was a strategic customer for us because we can foresee two to three years kind of a future order booking for these kind of quick cycle time orders. Now these are something which we have never done before.
These are fabricated plus machine components. That’s the reason I have said that once we complete this we will strategize on how do we take this forward. But it looks like if you are successful in executing this probably it will be a long time horizon of two to three weeks, kind of a business horizon that we can see though not large. But these are very critical and it could come on nomination basis as I believe we are the only guys in India who have taken this at this moment.
Mohit Surana
Understood. Just one last question on the inquiry pipeline. He said it’s around 1100 cross. Any idea on what could be the strike rate considering things are improving on the geopolitical as well as on the trade tariff front. Any idea what could be our strike rate at this point?
Reginaldo Dsouza
Yeah. So Mohit, first of all let me just clarify this 1100 crore is a real time inquiry. It’ll keep ticking as some other inquiries getting finalized. We’ll be able to get new ones in at this point in time. It is 1100 but over the last three to four months we have seen it between 900 to 1200 crores. So that’s the real time inquiry pipeline. In terms of your question on the strike rate, as I mentioned on the earlier question, we as a business would like to keep it anywhere between 20 to 25%, not more than that.
Because getting more than that is easier. You just compromise on the margins and take that order. But since we want better profitable orders, we would like to keep a very good balance on the strike rate and not exceed between 20 to 25 and focus more on getting more inquiries and improve the pipeline, improve the funnel rather than focusing on strike rate. Of course strike rate if you compare on a focused set of inquiries could be much higher. But on the overall pipeline we would keep it at 20 to 25% max.
Mohit Surana
That was helpful. Thank you. That’s all from my end.
Reginaldo Dsouza
Thank you.
operator
Thank you. The next question comes from the line of Rahel with Sapphire capital. Please go ahead.
Unidentified Participant
Good evening sir, can you hear me?
Reginaldo Dsouza
Good evening. Yes, please go ahead.
Unidentified Participant
Yes. This net interest cost which was high in quarter three. Now what is the outlook for quarter four? What is the steady state interest cost one can factor in?
Reginaldo Dsouza
So even for quarter four we would be able to maintain it at this level. As you know the it was higher because we had a higher working capital. We have forecasted for the quarter four and we expect this to remain at this level of around 1 to 1.1%.
Unidentified Participant
Okay. And. FY6 end, what do you think the order book will be? So what kind of order book you will end the year with to enter FY27?
Reginaldo Dsouza
So as I, as I mentioned it on the earlier question, of course our target would be much higher than that. But we expect it to close at the current rate close to about 600 crores.
Unidentified Participant
With let’s say 15, 20% growth. You’re targeting FY26, right? Meaning portfolio do 100 of more than 220, 230 crores going forward, will that run rate keep exceeding to capture a 20% or so growth by 27?
Reginaldo Dsouza
Yes, for sure. Our expected order intake on a three month block period is roughly about 200 to 250 crores. We are already reached that run rate right now. And with things improving in the future I predict that we should be at that or better level. And we have quarter one. As you know our average cycle time is anywhere between 9 to 12 months kind of a cycle time. So we will have to focus more on the short delivery items maybe around eight to nine months. And if you look at what we have strategized on this product like the technical services, the high volume products, these are all anywhere completion between six to seven months.
So for the next year that is where we would focus on to deliver the growth plan for next year. But as I said, we would wait for the focus right now and to close quarter four, we would wait for a couple of months before we come back to you. And I would be in a better position to give the exact numbers.
Unidentified Participant
Right, sir. And similar on the margins as well if it demands any scope for improvement. And if so, how.
Reginaldo Dsouza
Yeah, so EBITDA margins be as we have guided it will be in the region of around 22% for this year. And going forward, as I mentioned in the past, our endeavor would always be to maintain a bit of margins of 20% plus.
Unidentified Participant
Got it, sir. Thank you so much. All the best.
Reginaldo Dsouza
Thank you.
operator
Ladies and gentlemen, if you wish to ask a question, please press star and 1. The next question comes from the line of Ganesh Ram with Unified Capital. Please go ahead.
Ganeshram Rajagopalan
Thank you. I just have a few questions. The first one is I think it’s been hammered a bit, the order inflow status. When I look back last two years, you typically started the year with a larger order book than the revenue you built in that particular year. This sort of seems to be the first of many years where the situation would be the opposite. Right. At 15, 20% growth you probably have to deliver thousand crores top line in 27 and you begin the year with price 50 to 600 crores. So could you help? And that would mean that effectively in Q4 you can probably need around 400 crores odd in order inflow to get to that number.
Right. So if you could just help me understand if there is any risk to this FY27 guidance or are there other moving parts that’s going to help you compensate some granularity on this. That will help us build some confidence.
Reginaldo Dsouza
Yeah. So you are right, Ganesham. You’re right in your numbers of the previous years that we started off with an opening balance of good, good order intake. As you know, last year the domestic was really, really bad. There was Nothing in the 3/4 of last year which definitely impacted the order intake. And that’s the reason we see lower base because of the market conditions that we had at that point in time. Fortunately, domestic has picked up which you are seeing the reflections and in the numbers. And now with these uncertainties and especially the US trade deal out of the way, I think we will also see the revival in terms of export business.
And we should be back to those earlier days where we have inquiry pipelines and they get finalized within a two to three month period and then that ball keeps rolling on inquiry front. Unfortunately, what was happening over the last maybe one and a half year or five to six quarters was mainly that the finalization was getting deferred because of these uncertainties. Having said that, we did realize as a business that we also need to strategize and be prepared for this position. And that’s the reason, if you see strategically we have put few blocks in place.
Number one, we have moved our focus to higher volume, lower cycle time equipment. So if you see that itself in today’s context is about 10 to 12% of our revenue is coming from high volume, low cycle time. So when I say low cycle time, these are like six to seven months kind of completion equipment. And then we focused on the services business, which is anywhere quick turnaround, maybe by the time you get the order and you close, it is just about 1.5 to 2 months and a very profitable business. Now these three two blocks is going to help us moving forward in terms of building our pipeline for next year.
Even though we would not open up the order booking to the original liking that in the past that we would have had, as I said, we wish to open this year, that is FY26 at about 600 crore level or higher if it is possible. But even if it is not, these blocks are going to help us so that in the first two quarters we can book orders for these smaller cycle times, maybe six to seven months and still deliver in the financial year. So that is our plan. We are communicating to our customers. In that sense, our sales and marketing team is also moving and strategizing in that direction.
So to summarize the answer, yes, the opening order book position as compared to the previous phase, it looks lower at 600 crores. That’s precisely because of both the cylinders not firing together, that is domestic and international. But today I think we have reached a point where both the cylinders should start firing, the inquiries should start getting finalized and the strategies of moving into higher volume, low cycle time equipment and the services business should give us that confidence for the growth into the next year.
Ganeshram Rajagopalan
Thanks, Reggie. If I can just follow up on that. On the current order pipeline of 1,100 crores. Right. I’m assuming there’s no US. So with the US what could that pipeline look like? And in this thousand hundred, what would be the mix of those Services or the higher volume products that we need.
Reginaldo Dsouza
So on this 1100 crores, it’s not that there is no us, there is some small percentage, maybe 2% of it which was, which was on the back burner for some time now. Customers have started the discussions again. But with this opening up now, I’m pretty sure in the next few months it should at least bring about 200 to 300 crores. Kind of an inquiry position. That is firm inquiry position for the project bound for United States.
Ganeshram Rajagopalan
And high volume product contribution in the thousand one hundred would be how much?
Reginaldo Dsouza
So at the moment for the high value Item is about 13%, 13% to 15% range. But as I said, we would be now seeking for more because these will come at a shorter duration in terms of receiving the inquiry and final item because these are normally not called as long lead items for customers, these are short lead items for customers. So they generally come towards the fag end of the preference project. So all these projects that we have quoted for the long lead, the short lead item should follow in the next couple of months and which should well for us in terms of strategizing.
Ganeshram Rajagopalan
Understood. And just for my second question, thanks, thanks for. And this second question is on the working capital front itself. I remember there was about 120 crores or to receive and then I think about 20, 30% of the payments were still pending. If you could just give us an update on that and on the team.
Reginaldo Dsouza
Hello. Hello.
operator
Yes sir, sorry to interrupt. The current participant has been disconnected. We’ll move on to the next question. It’s on the line of Sonal with Precision Capital. Please go ahead.
Sonal Minhas
Hi sir, this is Sonal Minaz from Prescient Capital. I had a question on working capital and receivables. The earlier gentleman was also alluding to. Wanted to understand like you were mentioning. Your discipline around bidding for orders with a margin of 22%. What are the cutoff levels in terms of your receivable days in terms of how you look at working capital from a project by project perspective? That’s the first question I have. A second one I’ll ask after we’re done with this.
Reginaldo Dsouza
Yeah, so on the working capital side, based on the long cycle items that we are now quoting for with the hedge, sorry Kena facility with us where we can make much bigger items and long cycle items, we expect our average working capitals to be about three tons in between. Three to four is what we would like, but I think three is a more practical approach. That’s roughly about 120 days kind of working capital that we would carry.
Sonal Minhas
Okay. Is there a difference between export orders and domestic orders in terms of working capital as well or there’s nothing to read there?
Reginaldo Dsouza
Yes, of course, export working capitals are much better in a sense that the pure advances that we get on export orders are generally higher. They are in the tune of average 40% whereas for domestic orders they are in the tune of average 25%. So you have a 15% kind of an advances in your expense in your bag, which helps definitely your working capital. So from strategy perspective it always better for us to take better higher export.
One is on the working capital front that it is better. And also because of the exchange rates we are generally conservative when we take the orders and invariably we have seen on the historical data that we always tend to gain on exchange rates for export. So in that sense the preference is definitely always export. But having said that, I did mention in the past as a business we have strategized to be a 5050 kind of a business mainly from the risk perspective. So we have our own risk assessment matrix. And based on that we have defined ourselves that we should be 50% export and 50% domestic business.
Sonal Minhas
Got it sir. Thanks for reading this. By what timeline should we expect the cash conversion cycle to come down to?
Reginaldo Dsouza
Around 120 days from where it is right now, around 190, 200 odd days.
Sonal Minhas
Like is there a ballpark you have in mind in terms of timelines?
Reginaldo Dsouza
So based on our workings and projections, I think quarter one should be the time where we should come back to. We should end the year maybe close to three and one should be a clear between three to four terms.
Sonal Minhas
Got it sir. Thanks for the answer. Thank you sir.
Reginaldo Dsouza
Thank you.
operator
Thank you. Ladies and gentlemen, if you wish to ask a question, you may press star n1. Participants. If you wish to ask a question, you may press star and 1. The next question comes from the line of Ashish Duggar with an individual investor. Please go ahead.
Unidentified Participant
Hello sir. Thank you. My question is there was a news. Item that China investment will be open up in India. So I just want to understand what. Will be the impact or do we. Have any Chinese competition in our products.
Reginaldo Dsouza
For the kind of products that we deal with? I don’t think we will have that competition on two fronts. Basically. One is of course because the kind of equipment that we make are quite voluminous. So from that perspective their transportation cost is generally huge. And on the 2nd, most of the material that we use is all indigenously available in India today for us. So from that perspective we can still compete for projects in India and especially when it comes to PSUs. I’m sure you are aware that making India definitely governs. So from those perspectives I don’t think this is going to be a challenge for us.
Unidentified Participant
Thank you sir.
operator
Thank you. The next question is from the line of Ganesh Ram with unified capital. Please go ahead.
Ganeshram Rajagopalan
Yeah, sorry, I think I got disconnected last time for some reason. But I was just asking the current numbers of inventory receivables stable and then we’ve seen the commodity basket moves quite sharply over the last two quarters. Are you seeing any impact of it? And how do you generally pass on these RM costs? How is it set up with your customers?
Reginaldo Dsouza
So when it comes to the raw material Ganesh, it is all built in into the cost estimation. For us we have a forecasting model wherein we forecast probably next two to three months kind of a window in terms of the raw material purchase for us. For us the larger volume of bar is coming from plates and tubes and to some extent forging. So these are the three broad category range that we focus on and we build that estimate into our cost estimation. So it’s built in. So if we see a projection of it going high, we built in that into our costing.
If you look at historical data I think we have got it right most of the time except during the COVID time where I don’t think anyone could have got right. So otherwise in a normal business scenarios I think we are able to forecast that much better built in into our costing and maintain our profitability.
Ganeshram Rajagopalan
Right. So because the period of execution is let’s say nine months for the order and maybe you’re halfway through and the RM prices start going up, if it’s not back to back at the time of booking the order, that impact of RM price movement, who would that that or is there like an escalation clause that’s built in?
Reginaldo Dsouza
No, Ganesh, in our case projects are 100% fixed term contracts. There are no variable contracts. But. But to answer and give you that confidence, once we get the po, four to six weeks is the time wherein we place the orders for our raw materials. So the cycle would be longer in terms of execution. But the raw material placement is generally happening anywhere between four to six weeks from the PO receipt. So in that sense we are locking in the prices much earlier. And nowadays when the volatility is very high, we generally try to go back to back with our vendors so the prices are secured for us.
To add to that we generally as you know, have Two modes of orders, right? One is negotiable bid with the private customers. Which is like once we freeze, maybe within a week to 10 days we’ll get the PO so it’s more secured, more certain in terms of tendering is where generally the window between we quote and when we get the poor is anywhere a gap of three to four months. That is where our forecasting model comes more handy as compared to the private customers where there is negotiable bid. So forecasting more helps on the tender side whereas on the private side it is more certain.
And today if you see our breakup between tenders and private business, it’s around 60, 40. 60 is the private business. 40 is about tender business. And moreover the order placement from PO is four to six weeks. So that should give you the confidence that we are able to lock our prices quite early in the execution.
Ganeshram Rajagopalan
That’s very clear. The data keeping question is currently the numbers for inventory, receivables, payables, where is it right now and the RM split. Thank you.
Reginaldo Dsouza
One second. Let me get the number.
Ganeshram Rajagopalan
Yeah, okay.
Reginaldo Dsouza
So can we get this offline to you?
Ganeshram Rajagopalan
Yeah, yeah, that’s fine. That’s fine, that’s fine, that’s fine.
Reginaldo Dsouza
Perfect. We’ll get back to you on this. Satya Nilesh would get back to you on this.
Ganeshram Rajagopalan
Perfect. Thank you.
operator
Thank you. The next question comes from the line of Kabir with Kabir Investments. Please go ahead.
Unidentified Participant
To know now that we see more opportunities and more inquiries coming up in the US business, can we expect H2 to grow at a faster pace? Maybe move higher from the 15th for the next year?
Reginaldo Dsouza
Sorry Kabir, can you please repeat your questions? There was a little bit of disturbance.
Unidentified Participant
I’d like to know that the US business is. We see the US business opening up, can we expect to grow at a faster pace in the second half of the next financial year? Maybe to 25, 50% from the 15, 20% growth that we doing this year.
Reginaldo Dsouza
So Kabir, what I believe our focus today is to close this financial year with Q4 execution. And at the same time, as I mentioned, we foresee a good intake with all these uncertainties moving off. So I believe let’s wait for the couple of months before we come back to you for the next call where we will be in a better position to put the exact number on the growth. But surely our attempt would be to grow much faster than what we have grown this year.
Unidentified Participant
Okay, sir, thank you so much.
Reginaldo Dsouza
And then these are just, just a note. These are pure organic numbers. Inorganically. If Something goes right, we could land up much higher.
Unidentified Participant
Great. Thank you so much.
operator
Thank you. The next question comes from the line of Saket Kapoor, Kapoor and Co. Please go ahead.
Unidentified Participant
Yeah, Namaskar sir. Hope I’m audible.
Reginaldo Dsouza
Namaskar. Very clear. Please go ahead.
Unidentified Participant
Yes sir. Sorry I was late into the call so maybe a repetitive question. But sir, what explains firstly the lower turnover and hence the lower profitability. Q on Q the September quarter consolidated revenue at 232 crore and our December quarter revenue at 207 crore and thereby the profitability down from 43 to 50. That is my first question.
Reginaldo Dsouza
So Saket, if you look at historically quarter three is always a quarter for us from the perspective of number of days. Because. Because there are a lot of festivals around that time in the manufacturing zone that we are in. And if you look at our historical plan, we plan it with quarter three at that number. So we were exactly on plan for the growth that we had planned for. And that is how if you look at even in the future you will always find quarter two better than quarter three. Except that if you look at quarter on quarter last year we have done much better than Q3 of last year.
So a short answer. This is as per the plan of the business.
Unidentified Participant
Okay, so then year on year comparison there is a compression in margin. So that is unrelated to the product mix part or what explains that part of the story?
Reginaldo Dsouza
Yes, that is broadly on the product mix which I had articulated in the beginning of the year because we have moved to now scaling up based on high volume products as well, which are high volume, low margin business. So that will pull EBITDA little lower. And that’s why we said that we will be in the range of 21 to 22% of EBITDA.
Unidentified Participant
Okay. And going ahead for Q4 is traditionally a large quarter for engineering organization like us. So we should expect the same Trend line for Q4 in terms of at least the execution to be on the relatively higher side.
Reginaldo Dsouza
Yeah, so the last quarter is always the busiest quarter, the full quarter with full number of working days. So we expect it to be to be definitely in the similar trends.
Unidentified Participant
Okay. And just to conclude here we have also seen that in the oil and gas phase there has been muted response in terms of the capability or the capex done by the the psu, especially the ONGC of the world. And also the crude prices have also remained. So how has this affected our order booking part firstly and our pricing power also in terms of the bids wherein we are participating as a measure of our clientele are towards this oil and gas refinery, the petrochemical segment. So how are we seeing this pricing power part for us? And then second question is pertaining to the new facilities ramping up firstly at the Keda and also at the manufacturing plant at Mabel.
So how are these going to contribute going ahead?
Reginaldo Dsouza
Yeah, so Sagit, you’re right in terms of the investment from PSU and that is the precise reason if you see last year almost three quarters, it was literally zero from domestic. We had to completely depend on export business and that is why we could survive because our focus was equal on exports as we speak now as I mentioned in the call earlier and I think some of the gentlemen had this question. So domestic has picked up over the last quarter. If you see the domestic contribution is way higher as compared to export. And now with these uncertainties on trade deals and others out of our way, we think that both the verticals in terms of exports and domestic should fire equally and we should be in a much better position to have a better order conversion in terms of profitability of course as the demand goes down there are many capacities which are vacant in India and abroad and people get to the margin game.
So obviously it builds a little bit more aggression in the market in terms of pricing and that brings the pricing level down and that’s where the lower strike rates and other things come up. But we as a company are quite watchful. We want to grow and at the same time grow profitably. That’s the balance that we want to keep. So we are very cautious on every opportunity that comes our way that we maintain our profitability as well. Your next question in terms of the location, Keda as I mentioned we have already completed phase two as planned.
So I have said that by quarter three we will commission. Now Keda is fully operational with three completed manufacturing bays and one open yard. So it has got a capacity to deliver approximately about 450 crores per year of course depending on the product mix in a full 12 month period. So that’s the capacity which is commissioned, put to use and moving well in terms of maple as I said Maple by quarter three, that is nine month period it was at 23 crores of course better than last year. But in a sense most of its execution is at site fabricated equipment which are right now in progress and we expect them to close in February and March.
So Maple should do much better over 50 to 60 crores depending on the execution. So it’s moving well. We are not going to have any capex right now. As I said we See that plant to have a capability of anywhere between 150 to 200 crores without any further investment there. So that’s how the locations are. And as I mentioned in the call all three locations are firing very well. And we are very happy and glad that all the three locations are contributing. Well
Unidentified Participant
and. And in the order books we have orders from this new facility for Kera also which have. We just commissioned that. 11 I think. So the. The bid. The. The closing order book position.
Reginaldo Dsouza
Yeah. So 550. The closing order book has that facility also. So all the reactors, vessels and columns we make in that plant. And all the heat exchangers we make in our Ahmedabad plant. That is strategically how we have bifurcated between the two companies. Both are named as Anup Engineering. So we can always move things around. But. But strategically exchanges in Ahmedabad and vessels and reactors and other big components in Keda. Because it is on a national. Because it is on a national highway. It makes sense for us to move to the port.
Unidentified Participant
Okay. And how is Mabel positioned in the. In the three vertical in terms of specialization and how do this unit fit into?
Reginaldo Dsouza
So Mabel is specialized into making silos and tanks. That’s the product portfolio that has. And that was a precise reason why we acquired that company. Because we didn’t have that qualification to make silos and tanks under Engineers India Limited. So. So they are specialized only in making silos and tankages. And also added to that some side work.
Unidentified Participant
Okay. And lastly sir, on the order book front how much is attributable? You mentioned a figure for from the Mabel unit out of the total 550.
Reginaldo Dsouza
So after the total 550 Maple right now has a pending order book of 45 crores.
Unidentified Participant
Okay. That is addition to 550.
Reginaldo Dsouza
No, no. That part of the 550. Because we are looking at a concern level.
Unidentified Participant
Yes,
Reginaldo Dsouza
level. And, and. And that will be all mostly executed in this quarter and the coming quarter.
Unidentified Participant
Sorry sir.
Reginaldo Dsouza
Mabel is 100% a profitable company.
Unidentified Participant
Thank you for all the updates, sir. And all the best with the team.
Reginaldo Dsouza
Thank you so much.
operator
Thank you. The next question comes from the line of Ganesh Ram with unified capital. Please go ahead.
Ganeshram Rajagopalan
Reggie. I hope you aren’t tired of hearing my voice. But just one question. Which is the receivables from us. I think there was about 120 crores of which you received 70 already 70%. So where is the position with that right now?
Reginaldo Dsouza
So we had balance about 30 crores receivable from that for the equipment that we had already made it ready out of which already 50% has come in. And we expect that the balance to come in next month. Sorry, sorry. This month, not next February. We are already into February.
Ganeshram Rajagopalan
So of the 120crores 15crores is left.
Reginaldo Dsouza
That’s correct. That’s correct.
Ganeshram Rajagopalan
Okay, thanks.
operator
Thank you. Ladies and gentlemen, this will be a last question. It’s in the line of Varun Mishra with VM chambers. Please go ahead.
Varun Mishra
Hi. Thanks for taking my question. I just had a question on the strategy pivot, so to speak where we have decided to go into short cycle high volume equipment. Also I think you mentioned in the call that Keda Phase 2, the expansion has happened which has given us the capability to execute large cycle equipment. So how does this sort of go with the decision to move into short cycle high volume equipment?
Reginaldo Dsouza
So Varun, I couldn’t get the question clearly but let me phrase it. So you’re saying we strategized getting into high volume low cycle. And this Keda facility which has been installed for high tonnages. So how would this match? That is what the question was.
Varun Mishra
That’s right. That’s right.
Reginaldo Dsouza
Okay. So. So as I said, high volume products in terms of acse, PSA or the vessels. Those are all will be made in order of plant because they are smaller. So why do. Why we have strategically bifurcated between these two is based on the logistics challenges that we have. Ahmedabad facility being in the city limits, anything bigger than 5.5 meters moving out becomes extremely difficult because of the traffic. So all these small cycle time items generally would be smaller in size and they would be made here. And the larger cycle times which are generally larger in sizes will be focused to be made in Keda.
However, having said that, as I said there are three bays in Keda with closed and one open yard. Open yard is where the place is where we can make all these small cycle time items if required. If we do not have enough space in order then that facility is available. But generally we would prefer higher size, higher tonnage and longer cycle time equipments to be made in Kedo. Because the plant is generally designed for that.
Varun Mishra
Right? Understood. Understood. And just. Just as a follow up, this short cycle high volume equipments that you mentioned. What would they be like in terms of margin?
Reginaldo Dsouza
They would be as I mentioned earlier too, they should be around 15 to 18% margin profile.
Varun Mishra
Right? Right. Understood. Understood. Thank you. Thank you so much for your class.
operator
Thank you. Ladies and gentlemen. That was the last question for today. I now hand the conference over to Mr. Reginaldo D’. Souza. For closing comments.
Reginaldo Dsouza
Yeah. Thank you all for your very interesting questions and I hope I was able to clarify to your satisfaction in case. If you have any further queries, please feel free to connect with us and we would be happy to respond. I take this opportunity to thank my wonderful team at Anoop and to each and every stakeholder helping us deliver value. A big thank you to our shareholders for your trust and support as always. So once again, thank you. Take care and stay healthy. Thank you.
operator
Thank you on behalf of Anoop Engineering Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.