Trishakti Electronics & Industries Ltd (NSE: TRISHAKT) Q4 2025 Earnings Call dated Apr. 29, 2025
Corporate Participants:
Dhruv Jhanwar — Chief Executive Officer
Analysts:
Kaushal Shinde — Analyst
Jayesh Shah — Analyst
Rahul Arya — Analyst
Yashovardhan Banka — Analyst
Raaj Macwan — Analyst
Tanisha Yadav — Analyst
Nikhil Gala — Analyst
Kajal Shah — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Trishakthi Industries Limited Q4 FY25 Results Conference Call hosted by VentrA SecuritieS 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 and then zero on your touchtone phone. Please note that this conference is being recorded.
Before we begin, I would like to point out that this conference call may contain forward-looking statements about the company which are based on the beliefs opinions and expectations of the company as on date of this call. These statements do not guarantee the future performance of the company and it may involve risks and uncertainties that are difficult to predict.
I would now like to hand over the floor to Mr. Kaushal from Confederation of Indian Industry Partners. Thank you and over to you sir.
Kaushal Shinde — Analyst
Thank you and good days and ladies and gentlemen. My name is Koushik Shinde from Confederation Partner. We represent the investor relation of 3S Industries Limited. On behalf of Ventura Securities and Confederation Partners, I warmly welcome you all to 3S Industries Limited Q4 FY 25 Earnings Conference Call.
The company is today represented by Dhruv Jawa, the CEO of the company.
I would like to hand over the call to Mr. Dhruv for his opening remarks. Thank you and over to you sir.
Dhruv Jhanwar — Chief Executive Officer
Thank you, Bhushan. So hi everyone, this is Dhruv Jhaver here, the Chief Executive Officer of 350 India Limited. So first of all, I would like to warmly welcome you all to 350 India Limited’s Q4 FY25 Earnings Conference Call.
Today marks another important milestone in our journey and I want to take a moment to reflect on the progress we have achieved together. As many of you know, we certainly commenced a strategic transition at the start of FY25 when we shifted our focus entirely towards the heavy equipment hiring services business, a segment we believe who offers sustainable high margin and high growth opportunities aligned with India’s booming infrastructure sector.
So I’m pleased to share that in Q4 FY25, we delivered another strong operational and financial performance demonstrating the robustness of our strategy and our execution capabilities. Our standalone revenue stood at 3.3 crores representing a quarter on quarter growth of 82.61% whereas our EBITDA came in at 2.28 crores maintaining a healthy margin of 68.99%. Most notably our PAT grew significantly by over 1247% quarter on quarter to 1.79 crores, highlighting the high profitability of our heavy equipment rental operations.
During the quarter, we successfully achieved over 97% of our FY25 Capex target, investing more than 48.8 crores to expand and strengthen our equipment fleet. This investment not only enhances our operational capabilities but also ensures high asset utilization and strong margins in the coming years. We continue to see full utilization of our fleet and with high quality planes, land-rovers and other earth moving equipments sourced from globally reputed brands, we are confident of sustaining superior performances.
We are also proud to have secured additional M&A contracts in Q4 further building on the trust repose on us by leading corporates across sectors such as steel, railways, construction and energy. Our strategic client relationships, including those with Tata Steel, L&T, RVML, the Birla Group, KEC International, NCC and some more customers, remains a key pillar of our growth story.
Looking ahead, India’s infrastructure sector remains a powerful tailwind for our business. With large scale investments in transportation, urban development, power and ports, we believe the Shakti Industries is perfectly positioned to capture the expanding opportunities. In FY26, we plan an even more aggressive capex of over 100 crores aiming to significantly expand our fleet size and widening our sectoral footprint across ports and coastal infrastructure. We remain focused on delivering consistent revenue and EBITDA growth while maintaining high asset utilization and strong returns on capital employed, targeting an RoC of in between 22 to 25%. Our ambition is to scale two revenues in between 90 to 100 crores by FY28, which is backed by robust operating profit margins.
In closing, I would like to sincerely thank all our stakeholders, investors, clients, employees and partners for their continued trust and support. The journey we have embarked on is just the beginning and we are excited about the tremendous potential that lies ahead for Prishatme Mushy Limited.
With that, I conclude my remarks and open the floor for questions. Thank you everyone.
Questions and Answers:
Operator
Thank you sir. Ladies and gentlemen, we will now begin the question and answer session. If you have a question, please press star and 1 on your telephone keypad and wait for your turn to ask the question. If you would like to withdraw your request, you may do so by pressing star and 1 again. Ladies and gentlemen, if we have any question, please press star and 1 on your telephone keypad. We will wait for a moment while the question queue assembles. The first question comes from Jayesh from Shah Investments. Please go ahead.
Jayesh Shah
Yeah, hi. So, congratulations on a good set of numbers. I have a few questions. The first one is, sir, despite your 100% PV utilization on FY25, how do you plan to ensure similar utilization rates after your doubling of capacity to 1000 MWs in FY26, especially given project ramp-up timelines?
Dhruv Jhanwar
Okay, so basically what we are planning is that we are not focusing on the lower tonnage machines. The market is extremely saturated for the lower tonnage machines where there are thousands and thousands of equipments which anyone can buy because the ticket price is very small. So we tend to only buy those machines which are anywhere between 100 to 250 tons for the very start. So that is under where the entry is not very easily possible for a majority of the players because the machine cost is more. So to do further CapEx also and to keep our fleet utilization at 100% is easier for us if we are dealing in higher tunnel machines.
So by using this strategy, we believe that it is easier for us to first of all maintain the manpower, which is a very significant thing in this business because you have to consistently talk with the operators, laborers, the helpers, everyone. So it is easier to do the mind management as well if you are going for higher tonnage machines. Because in a 20 ton, 30 ton machine, you will have to employ four people, five people. And even in a 250 ton machine, you will have to employ four people. So this is the reason why we are expecting good fleet utilization, because our business strategy is specifically to go for medium and high tonnage machines.
Jayesh Shah
Okay. And the next question is what proportion of the 1000 million capex and f526 has committed versus exploratory or contingent on future orders? Could you break it down into green types of customer segments?
Dhruv Jhanwar
See, I cannot break it down to customer segments because we are currently serving to a very large with the machines, in the general group with KEC International, with ITD, with Adani Power, NCC. So it’s very tough for me to segregate these groups, but in the coming years right now we are only focusing on the blue chip companies. So it is very easier for us to maintain relationships with the blue chip companies because they mostly take 250-300-500 ton machines. So that is the reason why we want to sit with them only. This is how we are planning our capex in the coming year and the coming few quarters.
In H1 we are planning around 25-30% and the remaining in H2 but no such single will be only talking to one single or just a few clients. We are continuously getting multiple RFUs every single day. We on an average are able to get around 20-25 Crores worth of RFQs every single day from our existing clients. So until unless we are able to fulfill those, we don’t want to go outside our current client.
Jayesh Shah
Okay, sure. Makes sense. Thank you. And my next question is like the consultancy and commission business grew significantly in this financial year. So what’s the revenue contribution target from this vertical in F526, F527 and how strategic is it to your core rental business?
Dhruv Jhanwar
Yeah, so basically as everyone knows in the previous quarter itself and the previous phone call we had stated that we are hoping that the decline in our revenue will stop from Q3 onwards because all the other segments we have fed it off. So now if you see in this quarter segmental results as well, you’ll be able to see that we are only focusing on the equipment hiring business, the heavy equipment hiring business. So everything else has been stopped from our side because the previous management was different because management is different. The company is totally restructured with an infrastructure phase of it. So in FY26 we are only focusing on heavy equipment hiring, not only FY26. only coming quarters from here. We are five years down the line, seven years down the line.
Jayesh Shah
Okay, sure. And one last question. So can you provide the visibility on auto book or signed contracts supporting F526 and F527 revenue forecast? So specifically how much of F526 revenue is already locked in and talking about your Partnerships with lnt, Adani and Tata Steel? What is the client retention rate and are you moving from transactional to annuity style revenue?
Dhruv Jhanwar
Right now we are at an AR of around 22 to 24 crores already. So we have that much revenue locked in with us. But this is something which the contract sizes are very variable. Some companies give us a three-month contract, some give us a six-month contract, some give us a 12-month contract. So in our books right now we are at an era of around 22 to 24 crores. So like this is the revenue which we have already booked for the next year. Now it is up to us that when and where we do more capex. So this is this business has a lead time of around one to one and a half months.
So generally if you go for higher tunnel machines you have to import those machines. So those machines also take around one, one and a half months to actually reach India and then it takes another two weeks to get delivered to the client’s site and then all the small things like DPI and everything is done in the next three to four days.
So generally it takes one and a half to two months is the lead time for this business. So if we are able to do more Capex in X1 then obviously we can expect the revenue to go up significantly higher in the overall F520s or PML. But it all depends on when the machine creates and when it is actually unported to the clients. So this is a very variable thing, so I cannot comment more on this. But just to give you a good outline picture, this is how this industry is working as of now.
Jayesh Shah
Okay, sure. That answers my question. Once again, congratulations on a good set of numbers and all the for the coming financial years. Thank you so much.
Dhruv Jhanwar
Thank you so much, Mr. Shah. Thank you.
Operator
Thank you. Ladies and gentlemen, if you have any question, please press star and 1 on your telephone keypad. Ladies and gentlemen, if you have any question, please press star and 1 on your telephone. Next question comes from Rahul Arya from Tech Capital. Please go ahead.
Rahul Arya
Congratulations on a good set of numbers, Mr. First of all, I had just one question to ask in the management. Sir, can you give a broader perspective of the company? Three years? to five years down the line, how are we going to plan out? Because we just started building on assets and all. And can you just give highlight something on that part?
Dhruv Jhanwar
Yes, yes, of course. So see, basically our payback period for the machine which we purchased is around three to three and a half years. So if I’m doing papers in FI 25, I’ll actually be able to generate good cash flows and everything in FY28. So that is the time when our company will be a turnaround thing. Right now, although we are doing a lot of capex, but the real fruits will be with us in FY28, 9 and 30. So that time we are expecting our cash flows and PAT to significantly increase. This industry is like that, it is a very capex heavy industry, you have to invest a lot of funds and for the first two, three years the payback takes time to come, it takes three, three and a half years. So once that payback actually starts coming into the books, that is when you can do an insane amount of capex in FY 28, 9, 30, everywhere.
So like if you make a manufacturing plant or if you want to set up a factory, so it is obviously it is not possible that the day you think and the day you start, you will be able to earn money from that very day. So in our industry also right after the payback period is done and the machine is free of financing from the banks, then the real thing starts. So in FY 28-29, when we will be able to generate that amount of cash flow, then we will be having many kinds of avenues like if we want to do the EPC execution and commissioning work by us only. So that time our actual help us to take those kind of big contracts as well. It will also help us to enter into machineries where the tonnage of a crane is 1600 metric tons, which is 1200 metric tons, 1000 metric tons. Those single frames are worth 5200 crores. Once we are able to get ourselves into that kind of a, like get ourselves into those shoes, then it will be easier for us to work.
Rahul Arya
Thank you, sir. Sir, just another thing just wanted to add. How are you planning the next, next cycle of growth with the products financially?
Dhruv Jhanwar
When it comes to the portable KFX right now, for right now, if you have already booked, as I had said in the previous answer, that we have already booked 22 to 24 crores worth of revenue for this year. So if you actually see we will be able to generate around 8 to 9 crores or maybe 10 crores of cash flow from this particular revenue. So that will be re-invested into the business to purchase further machines.
Right now, if you see, we just recently started taking debt. So we don’t even have much credit limits as of today. Everything is being funded by ourselves only. So this is, so now in coming to the future, It will be able to maximize our debt and that will actually help us to buy more and more machines and this is how we are planning to get it done in the next two to three years. Till now we have not taken a lot of debt so slowly and steadily we will be going forward with it.
Rahul Arya
Okay sir, thank you sir. I’ll come back in a minute.
Operator
Thank you. Next question comes from Esho Vardhan Bhanca from Tiger Research. Please go ahead.
Yashovardhan Banka
Thanks for the opportunity. Sir, I wanted to ask if you are looking for any kind of inorganic growth led by acquisitions.
Dhruv Jhanwar
Can you please repeat your question once again?
Yashovardhan Banka
Are we looking for any sort of inorganic growth? acquisition led inorganic growth?
Dhruv Jhanwar
No, no, not as of now. You can see first, as I told you that all these things will come into the picture in FY 2020-21. And at least for the first two years of Capex, the first two years of Capex which we do when those machines are actually finance free and the full cash flow comes into our books only then is the time we will be doing all these kind of things which are saying because those things actually need liquidity we need a lot of liquidity for that. We will surely, we will be thinking about it, but right now is not the time.
Yashovardhan Banka
Right, okay. And sir, in the PPT, I have which is going through and I found, I mean, financial targets that were given a pretty aggressive. So these must be backed by demand that is seen at your end. So can you just price of when we are seeing major demand as to the geographical mix as well?
Dhruv Jhanwar
Right now we are seeing an insane amount of demand. Whether the demand is not in our hands obviously and be it geographically if you want to know then Odisha is the biggest hub because in Odisha it is the manufacturing hub of India and Gujarat as well. So if you want to give me an example, if I will give an example on Odisha, so Tata Steel, all of them have extremely big plants in Orissa, in KalinGanagar and Angul. So those plants are having capacity expansions. I’m just giving you an example that one capacity expansion needs more than 250-300 machines of all high technology. So the demand is not the issue for us right now.
The issue is that we get payment on time and we are able to buy new machines to get more capacity done. So that is a good issue to have, which we have right now. So demand is honestly not an issue on our side. And we are already seeing that all the metal, all the steel industries, they are having a capacity expansion of more than 200, 300, 400%. So everyone has started their first phase of expansion in FY26. So obviously these expansions will take around 35 to 38 months. If you want to build a new SMS plant or something. And on an average, they will be taking 14 months to. To end with their expansion. So if you see the demand for the next three years is insane. So this is how we are looking at the picture right now.
Yashovardhan Banka
Got it, sir. Got it, sir. Thank you. Sir, one last question. So. We are expanding our fleet size to say about 150 in the next two financial years. So when do we expect utilization to reach around 90-95%?
Dhruv Jhanwar
See, this is something which is very variable. This is something which I cannot comment on right now because 1999 fleet utilization, we hope that it never comes, but right now we already have contracts signed till December. Right now, though, we will be seeing 100% fleet utilization. But in future, maybe three years, four years down the line, I don’t know how the market is going to be that time. But we are hoping that if we only stick to our strategy of being with machines, then it will be easier for us to maintain a good fleet utilization.
If I go for very small escort machines and all, this is like, 20 ton, 13 ton machines, then obviously it’s very difficult for me to get contracts for those because those are used for taxi jobs. So if we focus on the medium and high tonnage machines, then the fleet utilization should be nice.
Yashovardhan Banka
Thank you sir.
Operator
Thank you ladies and gentlemen, if you have any question please press star and 1 on your telephone keypad. The next question comes from Raj from Ajeer Partners. Please go ahead.
Raaj Macwan
Hello, am I audible?
Operator
Yes, sir. Please go ahead.
Raaj Macwan
Sir, you have said on your PPT that you are doing a CapEx of around 400 crores from FY 25 to FY 27. Are you going to fund this?
Dhruv Jhanwar
We are majorly banking on the internal accruals. In the first year of business we had more than 50% ownership in our machines. So we are very heavily cash positive. So for us, we are depending on the internal accruals as of now. So this will help us to do K-Pex consistently rather than doing it just in one single month. And another thing is that we have not used any banking limits or anything like that. Everything has been extremely organic. So we will be monetizing those in the upcoming quarters or maybe the upcoming few months.
Raaj Macwan
Okay, so how much effect would be from debt? Can we expect 50 50?
Dhruv Jhanwar
50 50 is a lot actually because having 50% equity in the machines from day one is not easy because once you block your fund, you are getting it back after three years. If you see on a technical basis, in the industry, generally people try to put only 10 to 15% of equity in the machine. We generally put around 30% equity in our machines so that we are cash flow positive. Because we don’t want to do something in the first quarter when only I do all the capex and then slowly we are able to do capex.
So what we try that we want to go for positive progression that in the first quarter if I’m whatever cash flow I’m getting, I’ll be reinvesting that cash flow only. Second quarter, I’ll be getting a little bit more cash flow. So that cash will again be re-invested into the business by taking, by doing tech. So if you keep doing this on a compounding basis, then it will be easier for us to show a good linear growth, consistent growth.
Raaj Macwan
All right. So out of 400, those you are expecting 300 plus will be from debt, right?
Dhruv Jhanwar
Yes, approximately 50% is something which we are starting to. But of course, if you see on a technical basis, 400 crores, what exactly happens that when you suppose if I buy a 250 ton machine right now.
Raaj Macwan
Hello?
Dhruv Jhanwar
Yeah, hello. Yeah, if I buy a 250 ton machine right now, obviously by the end of the year, the repayment is already done around 20%. So getting the exact debt number on technical terms is not possible. Because once our fleet grows to that very level, our monthly repayment of the debt will be significantly higher than what we are going through right now. So it’s very difficult to give an exact proper answer in the future.
Raaj Macwan
Understood. And sir, who will be your biggest client?
Dhruv Jhanwar
See, we try to keep our Revenue in a very good mixture. So we have got Jindal. Jindal gives around 20 or 15 of our revenues. KEC gives around 30%, Adani gives around 10 and NTP gives around 6-7%. So we are numbers which is or I’ll have to check, but this is the rough estimates. We try to keep a good mix where we don’t want more than 25% revenue coming from one single client. But since in this industry that is also not a bad thing because if I’m getting an extremely huge contract from one company itself, then the whole plant is supposed to be made by me. Then it is not a bad thing. But on a broader perspective, we still try to keep it under 25% for one particular client.
Raaj Macwan
Which part of India do we majorly operate?
Dhruv Jhanwar
Right now we are operating majorly in Orissa and Jamnagar as well. These are our major sites. We operate pan India basis. But these are the few major sites which are going on right now.
Raaj Macwan
Okay. And sir, we have a plant property and equipment of around 36 Crores.
Dhruv Jhanwar
Right.
Raaj Macwan
Can you give me the composition of this?
Dhruv Jhanwar
Yeah. Around or 26, 25 crores, even hydraulic creams and. Sorry, crawler cranes and truck mounted cranes. We have around 15 grows, 13-15 grows of AWP as well. And actually a lot of our money is long in GST right now. So once that money also starts kicking in, it will be easier for us to do more projects.
Raaj Macwan
All right, so I just skipped the part on the 25 crore composition. 25 crore composition is for hydraulic cranes and crawler cranes, right?
Dhruv Jhanwar
Yeah, both of them. I. So 25 crores is for the color green and hydraulic things. And the remaining are awps. The aerial work platform. Yeah, we are very aggressively purchasing these two machines up there, like these two segments only. So in the coming quarters, you’ll be able to see how drastic change will be.
Raaj Macwan
All right, and sir, how much money is blocked in GST?
Dhruv Jhanwar
It’s around 7 crores or so. That money is also blocked in GST, so we are getting it surely on a monthly basis.
Raaj Macwan
All right, sir. Thank you.
Dhruv Jhanwar
These are rough estimates, but it should be around that only. Class 5, 15% or so.
Raaj Macwan
Yeah. And sir, as we do the capex and as we, as we get good contract, are we expecting EBITA margins to sustain at this point?
Dhruv Jhanwar
See, in our guidance also we had said that right now the machines are brand new machines. So it’s easier for us to get 70, 75% EBITA margins. But eventually when our material, machines will require maintenance, which is a long It is a minimum three to four years down the line. So that time the EBITDA margins on those machines will come down to around 65%. Okay. It is easier for us to calculate the EBITDA margins as it’s brand new machines. But in future, three or four years down the line, it will come to 65%.
Raaj Macwan
Okay, thank you for all the best.
Operator
Thank you. Next question comes from Tanisha Yadav from Keynote Capital. Please go ahead.
Tanisha Yadav
So my question here is the presentation mentioned a shift towards equipment leasing and equipment rental market growth. At 16 to 18% CAGR, how is three positioning itself to dominate this trend.
Dhruv Jhanwar
Right now, equipment rental business in India, recently I was reading an article on LinkedIn, it was around $4.1 billion, only in India. So right now it is a very unorganized market. So there is room for everyone as of now, because the amount of requirements we are generating every single day, not even every single quarter, every single day, we are not being able to fulfill those requirements. So if we are only not able to fulfill those requirements then penetrating the market is a different thing altogether.
So for us right now it is like as much demand is coming to us we are trying to fulfill as much as possible. But it’s a very big market and there is room for other players as well. But we are trying to make a niche in this market that we Medium and the higher ten machines, we are trying to penetrate those markets in which not many players are there currently. Okay, this is something which I feel that will be a positive thing which we are trying to do on these particular aspects.
Tanisha Yadav
Okay, no worries. Okay, so the second question is what are the key differentiators in your equipment quality services, model or technology? adoption that justify premium pricing or higher utilization?
Dhruv Jhanwar
Yes. So see, there are a few different brands of machines, a few different OEMs. So now if you see the best machines possible to buy in the European machines, but those are not very much possible to buy in India because their cost is so much that the Indian clients are not willing to give that much amount of premium. For some machine to buy right now is I feel it’s Sany is a very good brand, Sany India. So their machines cost is little bit more but the quality is very nice. They are generally if my machine is hypothetical, if my machine is weighing 50 tons then their competitors machines are weighing anywhere between 40 to 42 tons.
So if you see logically, they are charging you 20 to 25% more premium, but people, the blue chip clients like Tata, Daimler and all, they want those machines only because for them it is very important. Like the site safety is very important for them. So that is the reason why we feel that the machine we are purchasing is very differentiating factor for us. and plus all our machines are absolutely brand new, 2024 and 2025 make machines. So those machines are really more advanced than the previous generation machines.
Like the AWP’s we are buying, it has got all the kinds of ultrasonic sensors and all which five years down the line, no AWP had those kind of things. These are those things which actually differentiate us. In future, hybrid creams are also coming in. We are looking to purchase both also in future. These are a few things where we are trying to make a differentiating factor from our competitors or peers.
Tanisha Yadav
Okay, no problem. Thank you. Thank you so much for answering my question.
Operator
Thank you. Next question comes from Nikhil Gala, an individual investor. Please go ahead.
Nikhil Gala
Congratulations are on the good set of numbers. I just wanted to know about the EBITA margins that we have just posted the world that we will have 70 to 75 of EBITA margins and we did not reach there. So what’s the problem coming to reach that EBITA margins?
Dhruv Jhanwar
There is no problem coming in honestly, but these things take a bit of time actually. Because when you buy new machines, then in that particular quarter, there is a few cost also involved to get the machine from one place to another. And these are a few things which even I cannot help. But in future, like in the coming quarters, we will be able to get into that range. So right now this is the, this is why our operating profit margins are short of one percent. That is something which we will be improving in the next few quarters.
Nikhil Gala
So in FY 20, can we see this margins coming live 70-75% of the margin year?
Dhruv Jhanwar
Yes, yes, of course. We will try our best and we are hoping that it will be done.
Nikhil Gala
I just missed out on the utilization percentage. Can you just repeat it?
Dhruv Jhanwar
We are at 100% fleet utilization as of now.
Nikhil Gala
Okay, sir. Thank you. That’s what my question was.
Dhruv Jhanwar
Thank you.
Operator
Thank you. The next question comes from Kader Sha from Aurora fintech. Please go ahead.
Kajal Shah
Hello. Am I audible?
Operator
Yeah.
Kajal Shah
So my question is that you have completed 97% of the FY25 Capex target, which is 4,000 million. So could you provide clarity on the panel and composition of the plan 1,000 million Capex for FY26 and how exactly this will be utilized for business?
Dhruv Jhanwar
Can you please repeat your question once again? with a bit more clarity. Are you asking that how this impact of 100 crores is going to reach? Like how will we be able to do it?
Kajal Shah
Yeah, like how exactly we will be utilizing.
Dhruv Jhanwar
Yeah. Okay. Yeah. So basically right now, I think two, three questions before me. So basically our logic is that already we have booked around 22 to 24 crores worth of revenue for FY26. So as and when we keep getting those revenues, we will be able to generate around 8 to 10 crores worth of cash flow from these activities. And this will actually help us to do further Capex again. And one more thing is that right now we don’t have any kind of credit limits or anything, but in the next few months, we’ll be getting those things with the bank as well and that is how we’ll be able to reach a KPS of 100 crores.
Right now we are very under leverage but slowly and gradually we are taking on debt as well and we are trying to max out our debt because as everyone knows that this is a very debt heavy business. So the payback period is three and a half years. So we have to contain a certain amount of debt as well so that in 3-3.5 years we are able to make our machines totally bank finance free and then we can enjoy those cash flow and we can further expand.
Kajal Shah
Okay. And with 100% fleet utilization in Q4, are you currently turning over business due to capacity constraints? And it’s so, how are we prioritizing key expansion?
Dhruv Jhanwar
How are we prioritizing the last part of them? We’ve also been great in that. What was the last part of your question?
Kajal Shah
Okay, I was not audible. I’ll repeat. I’m in with 100% key visualization in Q4. Are we currently turning away business due to capacity constraints?
Dhruv Jhanwar
Yes, see right now our priority is to fulfill the current orders which we have. So right now we are at 100% field utilization. In future also we want to be at 100% field utilization because at this point of time we are trying to go for a larger duration of the contract so that the revenue growth is consistent in our company. So this is one more thing which I wanted to mention that if we are able to we will get longer term contracts and it actually helps us a lot to grow from quarter on quarter perspective.
Kajal Shah
Okay, thank you for answering.
Operator
Thank you. Ladies and gentlemen, if you have any question please press star and 1 on your telephone keypad. I repeat, ladies and gentlemen, if you have any question, please press star and one on your telephone keypad. We have a follow-up question from Jayesh Shah from Shah Investments. Please go ahead.
Jayesh Shah
Yeah, another couple of questions. So given the strong relationship with market clients like L&T, Adani and ONGC, are there any new large contracts in the pipeline for F526?
Dhruv Jhanwar
Yes, but actually we cannot disclose those contracts which are already working on because those contracts are not on paper yet. But we do have verbal discussions with a few market clients where we are working and a few sites where we can get single vendor sites. So like suppose hypothetically a large client comes to me, like a 50-50 company comes to me and they tell me that they are making a, they are doing a very big capacity expansion in one of their plants. So we want all the equipment from you only because everyone likes it when there will be one person to contact and regards to one particular segment. So we are currently working on these things, but we cannot disclose those things as of now. But yes, of course, in future, when we are able to get those on, you all will surely know about it.
Jayesh Shah
Okay, so one more with the stated focus on ports and coastal infrastructure. So what’s your plan for entering in these verticals. So any early traction in the same?
Dhruv Jhanwar
Yes. So see, right now, ports is doing very well, like very, very well. Or there are new ports being created across India. So right now we have already started working in ports around four or five of our machines are working on ports right now. So we have already entered this segment and in the next few months we are expecting a huge requirement from both companies as well. So we have already started working but as and when we keep on expanding, you all will get to know about it.
Jayesh Shah
Okay, so and last question is how are we like doing with respect to our peers? If any, if there’s any apple to apple peer if I may ask in terms of margins.
Dhruv Jhanwar
See our margins as of now is better than our peers because our peers have not been doing a lot of capex recently. But in this, like our machines are absolutely brand new. So that actually helps us to keep good healthy EBITA margins. But in future, as I told you that there are very unorganized Market. There are very, like, there is a very large Market. It’s very unorganized, very difficult for us to track our peers. But yes, of course, we feel that our better margin now is at a very good, healthy level. So it should stay like that. And we are trying to improve on it as much as possible every single day.
Jayesh Shah
Okay, sure. Thank you. That’s it from my side. All the best once again.
Dhruv Jhanwar
Thank you so much.
Operator
Thank you. Ladies and gentlemen, if you have any question please press star and 1 on your telephone keypad. I repeat ladies and gentlemen, if you have any question please press star and 1 on your telephone keypad. We have a follow-up question from Raj from Arjiv Partners. Please go ahead.
Raaj Macwan
Hello, am I audible?
Operator
Yeah.
Raaj Macwan
I just want to understand the economics of the business. So how much is the cost of one frame, for example, if it takes a hydraulic frame?
Dhruv Jhanwar
See, the cost is very variable. It can all disclose the cost because every person gets a different cost. So on social, like on platforms like phone call and all, I cannot disclose the every machine’s cost. Maybe one of my competitors can be getting it at maybe one lakh and I am getting it at 95,000. This is something which is a very sensitive thing which we cannot disclose. But when it comes to margins, I can tell you that on the gross block, whichever we do, is we are able to generate a blended deal of 2.2 to 2.3% on the gross block. So if I’m buying 10 crores worth of crawler cranes or hydraulic cranes, I’m able to generate 22 lakhs of the dividend every single month and on a revenue basis I’m able to generate around 31 to 32 lakhs of revenue every single month.
Raaj Macwan
Every month all right. Okay. Once you buy a crane and give it on rent, what is the major cost? Major cost? Hello, am I audible?
Dhruv Jhanwar
Yeah. Yeah, yeah. Major cost or diesel cost.
Raaj Macwan
That’s not really major cost.
Dhruv Jhanwar
Okay. Major cost. Okay, so see, major cost is only the salary of the operators who are actually running the machine. Those are the major costs and some of the maintenance also. So that 30% of the cost, which is like we have 70% margin, and the 30% of the cost is actually the salary of the operators and the helpers and the safety guys we put on the site and little bit of the maintenance like the engine oil, the oil filter was all those kind of things. So that 30% breakdown of these things.
Raaj Macwan
All right, yeah. Thank you.
Operator
Thank you. Ladies and gentlemen, if you have any question, please press star and 1 on your telephone keypad. There are no further questions. Now, I hand over the floor to Mr. Duru for closing comments.
Dhruv Jhanwar
So thank you everyone for joining the con call today. So probably in the coming week, I will be traveling to Mumbai for a few meetings. So if any one of you all want to meet or anything like that, then you can. Then you can communicate with our IR team and can find you partners and we can schedule an in-person meeting as well.
So I would like to thank you all for staying connected with us and it really means a lot that a lot of people have shown up for the con call today and this means a lot to a company like ours who are going through full transitioning. So this shows like gives us great confidence to work even harder for our shareholders. Thank you so much everyone.
Operator
Thank you, sir. Ladies and gentlemen, this concludes the conference call for today. Thank you for your participation. You may now disconnect your lines. Thank you and have a good day.