Transformers and Rectifiers (India) Ltd (NSE: TARIL) Q4 2025 Earnings Call dated Apr. 08, 2025
Corporate Participants:
Dhirendra Tiwari — Antique Finance
Mr. Satyen Mamtora — MANAGING DIRECTOR
Chanchal Rajora — Chief Financial Officer AND ADVISOR TO THE BOARD
Mr. Jitendra Mamtora — CHAIRMAN
Analysts:
Parth Shah — Analyst
Manish D — Analyst
Anupam Goswami — Analyst
Bhalchandra Shinde — Analyst
Samarth Khandelwal — Analyst
Mayank Chaturvedi — Analyst
Unidentified Participant
Rucheeta Kadge — Analyst
Kaushal Sharma — Analyst
Aaryan Saluja — Analyst
Siddhant Gupta — Analyst
Shivam Dave — Analyst
Samarth Khandelwal — Analyst
Presentation:
Operator
Ladies and Gentlemen, good day and welcome to the Transformers and Rectifiers India Limited 4QFY25 conference call hosted by Antique Stock Broking 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. I now hand the conference over to Mr. Direndra Tiwari. Thank you. And over to you sir.
Dhirendra Tiwari — Antique Finance
Thank you very much. Good day. Ladies and gentlemen, on behalf of NTIQ Stockbroking I welcome you to 4QFY25 post trivial conference call of Transformer Inductifiers India Limited the company today announced a very strong set of numbers and I congratulate the management to deliver yet another very strong quarter to discuss results and the outlook. I am glad to welcome the management team represented by Mr. Jitendra Mamtoraji, Chairman Mr. Satyend Mamtoraji, MD and Mr. Chanchil Rajoraji, CFO and advisor to the board. With these words I now invite Satyendji to give initial remarks post which we will open the floor for Q and A. Satynji, over to you. Thank you.
Mr. Satyen Mamtora — MANAGING DIRECTOR
Good evening ladies and gentlemen. Thank you for joining us today on our FY25 earnings call. We are pleased to connect with you as we close out with a remarkable financial year and share our performance highlights for both Q4 and full year. Earlier today our board of directors approved the audited financial results of FY25 and the same have been released to the stock exchanges along with investor presentation. The financial year 202425 has been a landmark year full of landmark year for our company Marked by record breaking operational performance, technological advancement and strategic growth initiatives that we have significantly enhanced our positioning in the transformer industry. We have achieved the highest ever production in the company’s history. Manufacturing 29,118 MB. Up from 16,425 MBA in FY24. This has directly translated into record high revenue growth supported by strong execution in LD and diversified order book. Our total order inflow now for year FY25 stood at 4504 crore, the highest in our history. This robust inflow has resulted in an unexecuted order book of 5132 crore as of March 31, 2025, ensuring clear revenue visibility for the next 15 to 18 months. One of the most significant milestones we hit was securing a landmark order of 740 crores from Jetco in March 2025, the largest single order in our company’s history and probably the largest by Jetco as well. This win exemplifies our industry leadership and customer trust. We also successfully raised 500 crores via QIP executed in record time. The capital will be instrumental in furthering our backward integration plans and expanding our manufacturing capacities. Q4 25 Highlights Q4 saw successful completion of Dynamic Short Circuit testing of 500 MBA 400kV, a key technical achievement that reinforces our engineering progress. We also completed short circuit testing with an 8.8 MV inverter duty transformer meeting the latest CES specifications. Our fully automated radiator facility has progressed well with PGCL approval process formally initiated during the quarter. Another major highlight was a record number of transformers tested in December 2024 both in terms of MBA and in total unit. Underscoring our internal capability as streamlined operations during Q4 we entered into technological tie up to accelerate our backward integration journey. These collaborations enhance our in house capabilities, reduce our dependency on external sources and improve our supply chain resilience. We proudly completed acquisition of a controlling stage in a CIGA processing unit by achieving 100% backward integration in one of the most critical raw materials which constitutes of 30 to 35% of transferable cost input. Looking ahead as we transition into FY 2026, our focus remains firmly on consolidation, global expansion and sustainable profitability. Our long term vision to become a US$1million revenue company within next three years remains intact and we are confident of achieving it through consistent. Execution and customer centric innovation and robust financial distribution. Our strategies include strengthening backward integration, investing in automation and digital transformation, focusing on clean sustainable energy solutions in line with India’s power sector ambitions. With strong fundamentals, industry leading capabilities and high quality order pipelines, we are well positioned to navigate the opportunities and challenges of the coming year. On behalf of the entire leadership team, I extend my heartfelt gratitude to all our stakeholders, customers, employers, suppliers, board members and investors. Your continued trust and support remain the cornerstone of our journey. Together we are building future ready organizations that not only leads in the transformer industry but also contributes meaningfully to India’s evolving energy landscape. Thank you once again for joining us today. I now hand over the mic to our CFO Mrs. Chanchal to take you through the financial performance in a greater detail. Thank you.
Chanchal Rajora — Chief Financial Officer AND ADVISOR TO THE BOARD
Good evening all of you and thank you Satyam sir, for your comprehensive overview and strategic insight on what has been a truly transformational year for the company. Your leadership has been instrumental in guiding us through a period of strong execution and the growth. It gives me immense pleasure to share with you the record breaking financial performance achieved by your company FY25 a year that marks a new high in terms of the revenue, profitability and operational strength. I first want to give small quarterly performance snapshots before I take you through the entire year journey.
Let me start with our performance for the final quarter for the financial year in Q4FY25 our standalone revenue stood at 647 crore with EBITDA margin of the quarter at 17.1% and the patent margin for the same quarter was 11.6%. Together these back to back strong quarters reflects the impact of improved execution capabilities and sustained demand from the both domestic and the export markets. I’ll just give you now the full year financial highlights for the FY25 Reservist FY24 at the beginning of the year company has guided a revenue target of INR2000 crore rupees in the financial year FY25 and I’m proud to inform you that we have achieved the group revenue of INR2051 crore rupees with a pet margin of 10.1% in the FY25.
That shows the journey part the company is going through moving to the full year performance on a standalone basis we reported revenue of 1950 crore rupees, a significant 53% growth as compared to the FY24 EBITDA S2 set all time 320 crore rupees. Up from 125 crore rupees in previous year making 149% increase. EBITDA margin improves to 16.12% for the entire year as compared to the 10.03% in FY24 indicates the better operating leverage and the cost efficiency measures taken by the organization. Profit after tax comes to come to 187 crore rupees a jump of 325% as compared to the rupees 41 crore of the last year. Margin improves 9.45% up from 3.2% of 3.24% in FY24. On consolidated basis the revenue target of 2,050 crore 1 crore rupees versus the 1294 crore rupees of FY25. EBITDA margin on a consolidation basis is 359 crore rupees and the PAT of 216216 crore rupees Key financial resource and Operation Metrics we continue to strengthen our balance sheets and improve our capital efficiencies. During the year the return on the capital employed was improved to 22.76% from the 6.7% as compared to the last year. Return of the Investment increased to 23.13% up from 0.95% of the FY24. Debt to equity ratio reduces 2.2% compared to the 0.84 last year reflecting our progress towards becoming a net debt free company. The debtors they reduces significantly to 114 days from 156 days as compared to the last year. FY25 was also a year of decisive actions and strategy expansion for the company. Company has raised 500 crore rupees through the QIP proceeds, among the fastest fundraisers in India Indian capital markets Reflecting the investors confidence in our long term vision, acquired a controlling stake in the CRJO process unit ensuring 100% backward integration for critical raw material component Launch to measure capacity expansion 15,000 MBA invert 15,000 MBA capacity expansion started in April 2024. The phase one operation by May 2025. During the year company has also started a capacity expansion of 22,000 MV at EHV Transformers expansion and at its MARIA facilities which is expected to be completed by February 2026. These projects will take our total manufacturing capacity to 75,000 MV enabling us to cater the rising demand from all the corners of the industry. In next 15 months company will be spending INR5550 crore rupees on capex expansions to strengthen its organic as well as the backward integration growth with the target to become 100% backward integrated. Outlook and the closing remarks looking at. Ahead of FY26 we are entering the year with a robust unexecuted order book of 5132 crore rupees and a well diversified pipeline of the inquiries from the both domestic and the international markets. Our focus area remains continued margin expansion through the operational efficiency, enhanced return ratios, strengthening backward integrations, becoming debt free company within next one to two years time. We are fully committed to our long term goal of reaching 1 billion in revenue within next three financial years and we believe that we are well on track to achieve this vision. In conclusion, I would like to express my deepest gratitude to all the stakeholders, our customers, investors, board members and especially to our hard working employees for their continued trust and belief in our journey. With your support drives our patient to deliver the excellence and create a long term value. We are excited about the opportunities ahead and remain confident in our ability to capitalize on them with discipline, agility and ambitions. Thank you once again for joining us today. And now I request moderator to open the floor for the question and answers.
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 their touchstone phone. If you wish to remove yourself from the question queue you may press star and 2. Participants are requested to use hand fits while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from Parad Shah from Ask Investment Managers Ltd. Please go ahead.
Parth Shah
Yeah. Hearty congratulations Jiten Bhai. Setting Bhai and Chanchalji, this is a remarkable testimony to something that you charted out sometime bit and very delightful execution I must say. Just two initial points that I wanted to answer. The margin in the fourth quarter in particular is quite healthy and surprisingly robust. Is this operating margin of almost over 19% for the fourth quarter on a consolidated basis. Is this representative of the picture ahead in terms of the margins?
Chanchal Rajora
Sir, good evening. How are you sir? All good? All well thank you sir. Thank you for joining us. It’s really privileged to have you here sir. Quarter four there are a couple of orders what we have executed were at a very very excellent margins and that’s why this. Quarter four margin is looking a little bit robust. But on the, on, on, on a futuristic side, the, the revenue. What, sorry, the margins, what we are showing on a yearly basis will be, will be the guided revenues. Guided margin, sir. I see.
Parth Shah
And which, which we should kind of take into account is what kind of a range?
Chanchal Rajora
16 to 17% level, sir.
Parth Shah
Okay. For the year ahead.
Chanchal Rajora
Yes, yes,
Parth Shah
Sure. And if we move to the journey of a billion dollars, which means from the little over 2000 crore in the year gone by, so by 28, we are saying turnover will more than quadruple and I assume given the operating leverage and the other benefit that will accrue our profit should grow it a bit faster in that journey.
Chanchal Rajora
Yes, sir. I agree with you sir. As I divided always my target is to, our target is to reach to a 10% PAT level and we are, we are basically targeting that. And as you said correctly, the margins will improve as well as the results will improve drastically, sir.
Parth Shah
Fantastic. Once again congratulations. And I think I was also very impressed that on 8th of April, a week after the year has gone by, not only results have been announced but audited results have been announced. This is remarkable. So once again congratulations J. And this is something to look forward to.
Mr. Jitendra Mamtora
Thank you. And one thing which is very close to my heart is the backward integration which we are doing which will definitely give us lead over other players as far as the order booking and the margins are concerned and also improving the quality of the groups that are going to be. Because everything is going to be now. So we will save time as far as the inspections are concerned because today the inspectors, the utility inspectors, they go to place to place to do the inspection here they have to visit only one place to do all the inspections. So that will also give us a faster, you know, lead time and we are very confident about this. Thank you Bharat Bhai again for joining us now.
Parth Shah
Thank you. And all the very best. Thank you.
Operator
Thank you. Your next question comes from Manish. From Nirmalpang Securities Private Limited. Please go ahead.
Manish D
Yes sir. Thank you for the opportunity. My question on your improvement in working capital this year compared to last year. So how do you see this is sustainable or what is the sustainable working capital? We can think when you talk about billion dollar revenue.
Chanchal Rajora
Manish, thank you much. Thank you very much for joining us. And the working capital what we are showing here, if you’ve been actually hearing us we’re targeting at the level of around 120 days working capital and I’m pleased to say that we are quite on that track and it’s a sustainable working capital for throughout the year. But on the other side our target Is to reach 200 days levels and as the revenue will increase and the margin will build up and reserves will build up this is going to be a very very sustainable target.
Manish D
Okay sir. And I’m referring the recently recent CNBC interview where the management said the 8,000 crores of order info for next year given the performance and given the current pipeline will you revise that number or. The 8,000 is the number which we are looking to achieve in the next financial year. So next, next financial year our order book input will be around 8000 crores. Order book will be 8000 crore not the order info rate against the 4500 crore which we have reported this year.
Mr. Jitendra Mamtora
Yes, because we are going to dispatch the 3,500 crore word transformers this year. So our order input will be around 8,000 order UEOB will be around 8,000 crores.
Manish D
Yes. And lastly sir, on the product innovation side I mean the high voltage transformers, any innovation we have done during the year. Can you talk about something on that front which can high in value and value margin accretive for us?
Chanchal Rajora
Manish, we are actually all into the all kind of the transformers right now. Yes, for this year we are targeting that we wanted to get into the HVDC segment and pretty soon we’ll be into that line. Otherwise if you say about the each way transformers we are because we have the capability to make up to 1200 KV transformers and no transformer has been built more than that so far now and one small data point.
Manish D
Can you split the CAPEX for 26, 27 and the last time you shared the product wise in the customer wise order book breakdown. This time it is not available in the presentation. Can you share the data? Thanks a lot.
Chanchal Rajora
Okay Bhadish, 2627. Capex we have not identified. We are working on those numbers so far. Firstly our target is to become the 100% backward integrated. And for that board has allocated 550 crore rupees which will be used for the backward integration as well as to the inorganic growth. What we are trying we are eyeing for 22,000 MV in this year. So that will become up. As far as the customer breakup is concerned that in our present order book around 45% is the utility business and around 55% is the EPC and other businesses. Comes. As far as the product is concerned, 70% of our product is on the 220kva plus and 30% is on the other transformer sides.
Manish D
What is the exports here of the order book?
Chanchal Rajora
Not only order book. Basically if I can tell you in revenue around 15% to 17% is the export shares around 15%. As you have been hearing us that we have targeted to remain around 15% on the export order book size. We don’t want to increase more than that because the opportunities are very very high in India and margins and payment terms are much much better now in India.
Manish D
Absolutely. Thank you.
Chanchal Rajora
Thank you.
Operator
Thank you. Your next question comes from Anupam Goswami from Life. Please go ahead.
Anupam Goswami
Hi sir. So my first question on the growth that you are building up in 1 billion revenue. So is it based mostly on the government capex or do we have are we on the private capex? And also now that we are venturing into EHV and hvdc, how confident are we given that the transformers capacity in the industry also rising, how competitive are we in that segment and what sort of margin will be able to maintain there?
Chanchal Rajora
Anupam, what was your first question?
Anupam Goswami
The growth that you’re building it is based on government utility or
Chanchal Rajora
Anupam. Basically if you see in my present order book is 45% 55 we have the customer mix and that shows that we have the diversified customer range. And second point is that let me tell you that the grid expansion in India is taking a very very fast pace. If I give you a very small example that as per the CA, only in next seven years, in next six years, basically 381 transformers are required. For the grid expansion which is 220 KVA plus transformers and around 193 reactors are required. And at present we even don’t have the half 50% capacity of that in India. And the growth in the grid expansion is taking a very, very fast manner. So by both the levels the requirements are coming and we are serving both the clients on that level. And second point is that margins are had reached up to the level where we don’t want to increase the margins much. As our chairman’s philosophy is very, very clear that we should not increase the margins to open the doors for us. For us, yes, HVDC we are entering and we are quite compatible to in terms of the HVDC as we are we have the manufacturing excellence or engineering excellence for the other products also same we have in this also.
Anupam Goswami
In hbdc. Do we have. Do we intend to tie up with something? Because I believe HDC only few players are qualified. Have you gotten any order or approval? As of now
Mr. Jitendra Mamtora
There are no orders as such. But you know they’ve been promised by the central utility. They will give us the work for the repair of the transformers and once they are comfortable with what we do on the transformers which we are going to repair. Because there is huge failure of the HVDC transformers in the creed. So they are very much keen to have the players who are homegrown or because of the India make philosophy of our prime minister, they are going to give us a trial order for that. And once we get it, we will do it on our own. But as far as the technology is concerned, we are not going to get the technology from anyone. Nobody is going to share that. As you know now if you see even 400kV and 765kV technology is not available. If somebody has to do it, he has to do it on his own.
Anupam Goswami
Okay. Lastly, if you can give some light on the kind of capacity transformers in India is building up in the next two, three years and the kind of demand demand you already mentioned, will there be any refurbishment of old transformers? And those orders along with this,
Mr. Jitendra Mamtora
The old transformers are going to be replaced. You know, the transformers which are older than 35 years, they are going to be replaced, but they are not plenty. Because we have started building 400kv since last only two decades and 765kv only since last 15 years. So there are not going to be many transformers for. Repairs of 400kV or 765kV. But in the years to come it is going to be.
Anupam Goswami
Thank you sir.
Operator
Thank you. The next question comes from Balchandra Shinde from Modilal Oswal Asset Management company. Please go ahead.
Bhalchandra Shinde
Hi sir. On the current order book what will be our institution cycle? 15. 15 to 18 months. And since we have started the CIG of Steel plant what kind of inventory will need to keep and how the cost impact or cost benefit one should see based on the steel price.
Chanchal Rajora
We have already tied up with the couple of mines for the long term mills for the long term supplies. So we’ll be not keeping the. Keeping the building inventory much into the facilities. They are going to supply us on monthly to us. So there is. There is no such inventory buildup is required. And more than the margins and these things. This is. This will. This acquisition will improve us the quality as well as the operational efficiency and delivery time. So which will automatically end up increasing our margins.
Bhalchandra Shinde
Because of the benefit of advances received. For the recording
Operator
We had lost your audio in between. And there is a lot of background sound also coming from your line. So if you can repeat the question once again.
Bhalchandra Shinde
Can you hear me now?
Chanchal Rajora
Yeah.
Bhalchandra Shinde
Yes. In working capital improvement how much is the benefit because of the advances received from the customer?
Chanchal Rajora
Not. Not. Not significant improvement on that decision. It is a overall and holistic approach. What organization has taken that is basically yielding the improvement in the working capital. Got it. And overall what will be our targets? As we said in FY26 for order inflows. Just I think a question back. Our MD has actually replied that. So our target is to have the 8,000 crore rupees order book by end of the next year.
Bhalchandra Shinde
Thanks.
Chanchal Rajora
Hello. Sagar. Can you please stick to one question by every person because there are lots of people are in line. Queue please.
Operator
Definitely. Ladies and gentlemen. In order to ensure that the management is able to address questions from all the part of. Participants in the conference please restrict your questions to one each for participant. If you have any follow up questions you may rejoin the queue. The next question comes from Samarth Khandelwal from ICICI Securities. Please go ahead.
Samarth Khandelwal
Special duty transformers which we I believe area of market is exports so how will. First question is that how will the tax impact this demand for special transformers from us and yeah with respect to special transform that’s it.
Mr. Jitendra Mamtora
The market for the special transformer is growing very fast Mainly because of the speed which is taken up for production of the green hydrogen and ammonia. There is going to be huge requirement of transformers for that. We have been getting inquiries from all over the world for the supply of the directed power transformers. So that business is going to grow in a big way. So when that that is going to be with the. There is lot of back background noise. Hello.
Samarth Khandelwal
Yes sir I muting my.
Mr. Jitendra Mamtora
So there’s going to be huge requirement for those transformers as well in the coming years. And as as far as India is concerned we are the major supplier of these rectifier transformers and the furnaces for. I mean the transformers for the furnaces whether it is electrical hard furnace, whether it is submerged furnace so that the business is also growing very fast. Have I answered your question Samanth?
Samarth Khandelwal
Yeah. Okay. Thank you. I’ll join back in a few seconds.
Operator
Thank you. The next question comes from Mayank Chaturvedi from HSBC Mutual funds. Please go ahead.
Mayank Chaturvedi
Yeah. Thank you for the opportunity. Sir, just a clarification. You said the manufactured MBA for the year stands at about 29,000 MBA. But when we had discussed 2Q FY25 results it is guided that will be around 40,000 MBA with the revenue of about 2000 crore. So the realization per MBA was about 5 lakh per MBA but now it seems it has risen to about 7 lakh per MBA. So can you just clarify what the difference that has come out come out in the second.
Operator
Can have perfect 25 on the realization and the.
Chanchal Rajora
This is the wrong perception of the people. That realization of the for MBA realization is just for the namesake. See if you make a larger transformers like if you make a 500 MBA 765 KB transformer which is single phase which is around today the 500 MV transformer cost about 20 crores. If you talk about 500 MBA transformer 3 phase of 400 KV it is. It is costing you 32 crores. So it is just. I mean for the namesake, you know. You can’t decide the per MV realization of the transformer and come to the conclusion about the margin. Like reactors. Reactors are again, you know 7. 7 lakh to 8 lakhs per MVA. So. But they are different. So every. Every transformer has a different per MVA realization. If you go for a smaller transformer the realization will be something like 15 lakhs per MBA.
So it does not tell you anything about the realization per MBA. But 29,000 MV or 30,000 MVA and 20,000 2000 crore of revenue comes to around 6 lakhs per MBA. So that’s fairly good, you know.
Mayank Chaturvedi
Yeah, yeah,
Chanchal Rajora
Yeah. Okay.
Mayank Chaturvedi
Just. Just a follow up on this. Safe to say that we now operating at 70, 75% utilization and that will get fully utilized in the next year.
Chanchal Rajora
Yes, we are currently at our 60, 65% utilization. Next year we should reach about 80% utilization.
Mayank Chaturvedi
Okay. Thank you.
Mr. Jitendra Mamtora
Mayank
Mayank Chaturvedi
Yes sir.
Mr. Jitendra Mamtora
Thank you very much for your continuous confidence and support.
Mayank Chaturvedi
Thank you.
Operator
Thank you. The next question comes from Pritesh Cher from Lucky. Please go ahead.
Unidentified Participant
List your volume number for FY25 and I missed the CRGO backward integration. So do we do right now Any make any CRGO or. This is all incremental that you’re talking about.
Mr. Jitendra Mamtora
See this is a process house. It just processes the crgo.
Unidentified Participant
Yeah, I know. Lamination.
Mr. Jitendra Mamtora
Tell me.
Unidentified Participant
So I’m just saying were you making your lamination.
Unidentified Participant
First time you will make it.
Mr. Jitendra Mamtora
So they say we have taken over a company which was into this business. So they have taken 51% stake in it. So we don’t have to look for the technology partner or anything. The person is already there is working on that. We are heading on the two more lines for manufacturer of CRU of different configuration. And also the CRGO for the reactor coils reactor co people who are doing it now. So we’ll be the third party to doing to be doing it.
Unidentified Participant
Okay, so so basically the volume that this company was doing and will do what is that number?
Mr. Jitendra Mamtora
See they were not doing much because lot of financial issues and all that. And they had some conflict of interest with Cusco who were their partners. So now they are not there. But Postco has assured us a particular supply so that we are not short of real when the time comes.
Unidentified Participant
So when you said 100% backward integration between next year your whole volumes will be. The laminations will be yours. That’s how it will be.
Mr. Jitendra Mamtora
Oh yes. CRDO will be almost 100 hours. Almost. I say because sometimes you know the larger reading are mini and then limited capacity of the larger machine. So we may have to buy from outside or we may get it done on Joe World.
Unidentified Participant
Okay. And the volume number
Mr. Jitendra Mamtora
80 will come from our own company.
Unidentified Participant
So I asked the volume number for FY25. What was your transformer volume number?
Chanchal Rajora
If you exactly wanted to understand what how many numbers we are producing. We have lots of.
Mr. Jitendra Mamtora
No, I asked the M S. I am asking the MV. You gave out the MVA number
Chanchal Rajora
28,882.
Unidentified Participant
Okay, perfect. Thank you very much.
Chanchal Rajora
Sagar.
Operator
Yes sir.
Chanchal Rajora
I request you please take one question at one time please.
Operator
Sure. The next question comes from Ruchita Kargi from I Wealth. Please go ahead.
Rucheeta Kadge
Hello sir. A very good evening. Most of my questions are answered just one question on the Capex side as we are saying that we do in the next 15 months. Around 550 crore of capex. So how much would that be in FY26?
Chanchal Rajora
FY26. Should be close to around 400 crore rupees.
Rucheeta Kadge
400 crore. Okay. And that would mainly be spent on the backward integration part. Right?
Chanchal Rajora
And backward integration as well as in organic growth.
Rucheeta Kadge
Okay, so how much for the backward integration and how much for the organic growth?
Chanchal Rajora
As of now we don’t have the perfect numbers. But let’s say it will be sold. 40% should be on organic growth and 60% should be on the backward integration side.
Rucheeta Kadge
Okay. And just so just to confirm next year
Operator
May we request you to return to the question queue for follow up questions. Your next question comes from Kaushal Sharma from Equinox Capital Ventures Private Limited. Please go ahead.
Kaushal Sharma
Hi sir. Very good evening. Am I audible?
Chanchal Rajora
Yes, please.
Kaushal Sharma
Yeah. So my question is on industry side like I have heard that there is great opportunity in the US side because there is some disruption on there great side. So. And we have recently faced some reciprocal tariff in our industry. So are we expecting a good momentum in the export market as far as is concerned? And what kind of tariff impact in our industry would impact our margin in future?
Chanchal Rajora
So we are. We would be doing around 10% of our total turnover next year in exports. So do we have any impact of this reciprocal d. No, there is no reciprocal tariff. Our. Our products are exempted from tariffs now.
Kaushal Sharma
Okay, sir. Thank you.
Operator
Thank you. Thank you. Your next question comes from Gunjan Kabra from N.
Unidentified Participant
Hi Jitendraji. Congratulations on a very good set of numbers. So one question is that orders that got delivered this quarter you mentioned that were of high margin. So which segment was that in terms of type of transformer,
Mr. Jitendra Mamtora
Extra high voltage transformers.
Unidentified Participant
So that order book is also in the high voltage transformer majority of the. So why can’t the margin in sight of we being the most backward integrated player in the industry then?
Mr. Jitendra Mamtora
Gunjan, look, we have the product mix with us and the customer mix. So it’s not. It’s not there that with every customer we have that much of the margin. Right. So on average basis the margins will remain somewhere around 16 to 17% bracket as we told you.
Unidentified Participant
Okay. And in the beginning of the year we had a 17, 000 crores of order pipeline. And now it is around 22000 crores. So how.
Unidentified Participant
How much of the 17,000 has been converted in terms of orders in the industry itself? And right now how much would be from the high KV side and how much would be from the IBP side? Any idea on that?
Mr. Jitendra Mamtora
Gunjan? Basically if you see that out of 17,000 what the inquiry lines we have we already got around 4,500 crore rupees of the orders. So that is there. And apart from that we still have 22% 22 crore rupees. If you see the 22,000 crore. If you see the success ratio you can see we are already reaching to the next year requirement.
Unidentified Participant
Yes please. Thanks for the opportunity sir. And thank you again for congratulating you for surprising us again. It’s super native blockbuster number. My questions are mainly answered. But one thing which was left behind was that we are doing the CapEx of 550 crore in the 15 months. So what is the CapEx of 100?
Mr. Jitendra Mamtora
No, as of now not last QIP.
Chanchal Rajora
So we won’t be needing anyone for that space in countries like the 10% exporting to almost all developed countries of the world.
Unidentified Participant
Understood. What sort of numbers?
Chanchal Rajora
Sorry I didn’t get your question.
Unidentified Participant
What sort of percentage we are expecting to export to us we would see.
Chanchal Rajora
As time goes by we will see how much we are exporting to us and how much we are exporting to other countries of the world.
Mr. Jitendra Mamtora
Vishal. Okay Vishal. US is not that focused for us. Our focus is that where there is the more revenues coming up.
Unidentified Participant
Understood. Thank you very much sir and good night.
Operator
Your next question comes from Aryan Saluja from Derby Asset. Please go ahead.
Aaryan Saluja
Yes, you are audible. You have mentioned your philosophy about not focusing on margin to open doors. But as on the last phone call we have discussed about scarcity and backward integration. Where do you see that playing out in terms of margins in the future as we have already attained 19% without them clearly playing out yet.
Chanchal Rajora
Sorry, I didn’t understand your question clearly. What is it that
Aaryan Saluja
Your focus is not on margin improvement?
Mr. Jitendra Mamtora
Aryan?
Aaryan Saluja
Yeah,
Mr. Jitendra Mamtora
Our focus. What our intent is that Our focus is not to increase the margins by increasing the prices. Our focus is to increase the margins by increasing the operational efficiencies. What you have asked is that we have achieved the standalone margin of 16 and 17% level which is the sustainable margin for the industry and for us. So we don’t want to increase the pricing to open the door for others. That is what is meaning. Second point is that on the backward integration size what we are looking up that the margins, what we will be getting from that, that will be the additional margin will be adding up in our revenues and margins.
Aaryan Saluja
Thank you.
Operator
Thank you. Your next question comes from Siddhant Gupta from RV Investments. Please go ahead.
Siddhant Gupta
Good evening sir. Am I audible?
Chanchal Rajora
Good evening.
Siddhant Gupta
So congratulations on good set of numbers. So all my questions have been answered. So I will just ask one question. So can you comment on the bottom line?
Chanchal Rajora
My bottom line is 10% dear.
Siddhant Gupta
And going forward will it remain same or like any changes and we can expect. Okay sir, that’s it. Thank you.
Operator
Thank you. Your next question comes from Shivam Davi from Prodigy Investment. Please go ahead.
Shivam Dave
Yeah. Hi. Am I audible? Yeah. I just wanted some clarity on the balance sheet. There is a sharp increase in your non current trade receivables. What does that account for?
Chanchal Rajora
Shivam, Basically in our receivables there are the two kind of the receivables. The one is the receivable which are the due for the payment. And second is the receivables which is basically a retention. Money lies with the utilities which comes basically after the project is completed. So this, this non current receivables are the receivables which are not due for the payments.
Shivam Dave
So that is 336 crores right?
Chanchal Rajora
Yes sir, that is 336 right. So which will be realized in next 6 to 10 at 6 months to 12 months time.
Shivam Dave
Okay.
Chanchal Rajora
So that is as soon as the projects will will comes and also there is a part of that into the. In that the receivables which are essay basically related to the March sales. So then those are not due because the once the product will reach there then these will be due for that tenant. So it is for the better understanding for the investors.
Shivam Dave
Okay. Okay. And another just a follow up if I can ask the 15,000 MBA capex that we have when would that come online?
Chanchal Rajora
The first, the first phase will start from the May 25th in two months time.
Shivam Dave
So that should first phase should include how much?
Chanchal Rajora
The first phase should include about half of the volume and by as progress by Q2 the entire will be available for the commercial production.
Shivam Dave
Okay. Okay. That’s it. Thank you.
Operator
Thank you. The next follow up question comes from Samarth Khandelwal from ICICI Securities. Please go ahead.
Samarth Khandelwal
We did a technical tie for manufacturing machine this quarter. Could you elaborate on that? And how much of the raw material cost as a percentage of raw material cost does bushing cost us and how much will be the benefit?
Chanchal Rajora
Samarth, these technology types of tie ups are related to the backward integration components mainly for the bushing and the insulation products. These and these are basically they may not, they may not be comes under the AB category of the raw materials but they are very critical components for the transformers and their lead times are quite high. To mitigate that lead time and to mitigate the availability of the product immediately these backward integrations are being done.
Samarth Khandelwal
Thank you.
Chanchal Rajora
One more question please.
Operator
Sure. The next question comes from Gandhi from New Mo Research lab. Please go ahead.
Unidentified Participant
Hello sir. And congratulations on our Senate of numbers. So hello. Am I audible?
Chanchal Rajora
Yes.
Unidentified Participant
Yes. So sir, with respect to the 22,000 MBA that CAPEX which we intend to plan to incur. So where do we see the finance coming from that? How do we, how are we going to finance.
Chanchal Rajora
From the internal accruals and the QIP proceeds what we have with us.
Unidentified Participant
Okay. And sir with respect to the CSGO background.
Unidentified Participant
Integration. How much margin improvement do we see Once the CRG is completely backwardly integrated,
Chanchal Rajora
Sir, it won’t increase the much of the. Much of the margins. We may. We may end up having 0.25% on the product basis. But. But it is going to improve my operational efficiency and quality, which will. Which will give me the extra leverage on my production capacity.
Unidentified Participant
Okay, answer this one more question, if I may. Are there any bottlenecks with respect to the power and transmission industry? Because we are seeing lot of, you know, slow government capex as well. So the transmission distribution industry entirely depend on the government capex. Right. So are we seeing any slowdown? Are there any major bottlenecks which we are facing considering that we also have a major chunk of, you know, power in distribution transformers?
Mr. Jitendra Mamtora
No, there is no slowdown in terms of government spending in the power sector at our. Power and energy sector at all.
Unidentified Participant
Okay. Thank you. And all the best.
Mr. Jitendra Mamtora
Thank you. Thank you.
Operator
Thank you. Ladies and gentlemen. We will take that as the last question for today. I now hand the conference over to Mr. Darendra Tiwari for closing remarks.
Dhirendra Tiwari
Thank you very much. And I would like to thank the management of Transformer Rectifier to give us the opportunity to host the call. Before I end, may I invite Sapinji for his closing remarks? Please.
Mr. Satyen Mamtora
I would like to sincerely thank each of you for taking your time and joining us today in our earnings call. We hope that we have addressed all your queries and we look forward to many more meaningful interactions with you in the future. Thank you.
Dhirendra Tiwari
Thank you very much. And we can close the call now.
Chanchal Rajora
Thank you. Thanks. Thanks Agar. And thanks Diwariji.
Dhirendra Tiwari
Thank you. Thanks a lot. And all the best for future. And now we can close the call. Have a good evening. Thank you.
Operator
Thank you. On behalf of Antique Stock Broking Ltd. That concludes this conference. Thank you for joining us. You may now disconnect your lines.