Unimech Aerospace and Manufacturing Ltd (NSE: UNIMECH) Q4 2025 Earnings Call dated May. 28, 2025
Corporate Participants:
Unidentified Speaker
Manish Valecha — Research Analyst & Investor Relations
Anil Puttan Kumar — Chairman and Managing Director
Ramkrishna Kamojhala — Whole-Time Director & CFO
Rajnikant Balaraman — Whole-Time Director
Mani Puthan — Whole-Time Director
Preetham S V — Whole-Time Director
Aakash Jaiswal — AGM, Investor Relations
Analysts:
Unidentified Participant
Akshay — Analyst
Arvind Ananthanarayanan — Analyst
Harshit Patel — Analyst
Kamlesh Jain — Analyst
Balasubramanian — Analyst
Saini Batra — Analyst
Rajmohan V. — Analyst
Sonia Lalwani — Analyst
Vaibhav Jain — Analyst
Rahul Rajani — Analyst
Kher — Analyst
Shashank Jain — Analyst
Vaibhav Shah — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Unimech Aerospace and Manufacturing Limited Q4FY25 Earnings Call Hosted by Anandrathi Stock Share and Stockbrokers Ltd. I as a reminder, all participant lines will be in listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Manish Valicha. Thank you. And over to you sir.
Manish Valecha — Research Analyst & Investor Relations
Thank you. Good morning ladies and gentlemen. Welcome you all to the 4Q FY25 and FY25 results conference call of UniMac Aerospace and Manufacturing Ltd. From the management team here today we have Mr. Anil Putin Kumar, Chairman and Managing Director Mr. Ramakrishna Kamojla the whole time Director and CFO Mr. Rajnikanth Balaraman the whole time Director Mr. Maniputtam who Director and Mr. Pritam SV the whole time Director. We also have Mr. Akash Yaswal, AGM Investor Relations. I now hand over the call to Mr. Anil for his opening remarks post which we will take the questions from the participants.
Thank you and over to you Mr. Anil.
Anil Puttan Kumar — Chairman and Managing Director
Good morning ladies and gentlemen and welcome to the fourth quarter of FY25 call. As we talk about our performance during the quarter I would like to share a few insights on the industry and segment that we work in. Firstly on the aerospace. India has become the third largest passenger market globally as per FY24 data highlighting the increasing importance of pooling in MRO industry in maintaining the efficiency and reliability of the aviation sector. Favorable government initiatives and increased global demand for MRO services are boosting the growth in the segment. As per Niti Ayog’s report the Indian MRO market values is approximately $1.7 billion in 2021 is expected to reach US 4 billion by 2031 reflecting a strong CAGR of 8.9% significantly outpacing the global average of 5.6%.
Speaking on fisherman segment we are working on two aspects. One eyeing on opportunity in nuclear and energy segment predominantly domestic and two onboarding overseas OEMs and Taiwan in building a strong pipeline for increased manufacturing operation components coming to nuclear updates. UNIMEC is aiming to capture a bigger opportunity with this segment which also give us a longer order visibility with NPCL planning expansion of 11 new reactors. UNIMED planning to participate in at least 15 subsystems amounted to 400 plus crores of opportunity in each of the reactors for UNIMET and also I have an opportunity in couple of subsystems from one of the domestic pair ones of NPCL coming to few hundreds of crore opportunity in the coming quarters.
Also eyeing an opportunity of five EMPCR reactor tenders with each reactor budget is valued above 1000 crore and some of the tenders are open. Further the second generation reactors in DHR and MSMR space providing a strong opportunity on the revenue front. To sum it up, Indian government has budget to launch 100 gigawatts of energy products reactors make it India initiative along with FDI push. The recent ATI push will witness a rapid expansion in the segment in the future years. Coming on the capacity updates, UNIMED believes in rapid expansion. Our sheer commitment to growing pipeline of customers has resulted in adding four new customers in aerotooling and three customer sync patient components during the fourth quarter of 2025.
Now our total customer count including aerotooling and patient segments has reached to 32 customers as of 3-31-25. During first quarter of FY26 we have qualified two new customers in the patient segment patient component segment. Additionally we are working towards qualifying five new customers of which two are OEMs and three are TAD ones. Focus has always been an increasing qualification of high complex toolings and patient components in subassembly. This reflects our Strong margin. Qualified SKUs as of March March 25th is 4388 against 4041 of December 31st, 2024 and recently we bagged an order on the new product line.
New engine stands the ground support equipment for engine transportation, one of the most running engine program in the world today. So we see an opportunity for long term order visibility or long term agreement in the coming quarters. A lot of efforts started in third quarter, continued fourth quarter in FY25. We have hired 132 employees in the quarter. This increases our employee headcount to 793 up from 661. This looks like a significant addition but is in line with the planned capacity and enhancement. We also increased our capacity to 213,000 square foot as on March 25th up from 1 80,000 square foot as on 31st December 24th.
We plan to add some more facilities as we expect more and more inflows order inflows in the upcoming quarters expecting to increase at least to 3 lakh square foot by adding another facility in the near vicinity in Devon Alley area. We have added 48 missions during the quarter as of March 25 and we have machining capacity of 6.32 like ours up from 4.22 lakh hours of 12-31-24. We talked about the utilization and other details in the coming slides. Ram will detail give you detail a couple of more details of the utilization Point on this Coming to the revenue updates and guidelines for FY26 revenue growing during the Quarter Revenue growth during the quarter has been very strong achieving revenue of 68 crore operating revenue of 68 crore the highest ever in any quarter.
This resulted in FY25 operating revenues to 243 crore up by 16% year on year growth. Revenue has grown over six times in the last four years of operation. Before I hand it over to Ram for his additional details on the financials, I would like to emphasize that we can reasonably grow around 35 to 40% this year. There might be some slowness in the order pickup or sales in the first one or two quarters because of the tariffs and you know a lot of the inventory shipments would have been would see some slowness in the in the first two quarters from our customers until there is a clarity on you know the US tariffs by 9th July but we are confident that we would hit what we have planned for.
But as the tariff negotiation between the both countries crystallize order of pickup will be back to full swing. I would expect from probably mid of second quarter that would see the full swing. So thank you gentlemen I’ll hand it over to.
Ramkrishna Kamojhala — Whole-Time Director & CFO
Thank you an Good morning everyone. I’ll now give you a complete overview of financial performance as well as outlook for the next year. Coming to the revenue our FY25 revenue growth was healthy and grown by 16% from last year and even quarter four also witnessed strong revenue growth of 27% water on quarter. The quarter ended with revenue of 68.4 crores and the year is ended with a total revenue of 243 crores. On the revenue contribution if you look at from business segment wise Aero tooling is contributing 85% of total revenue while balance coming from you know the other segment which is Christian segment.
Our largest revenue comes from you know US geography as kind of followed by you know the Europe US is 80% and Europe is close to 16%. Coming to the profitability aspects gross profit margin were at 69 for FY25. We maintained you know strict control over material cost subcontract the cost continue to trend you know lower due to addition of new Facilities expansion and now more machines were added and we started using more machines so the contract requires continue to be lower. EBITDA for FY25 was 92 crores which has grown up by 16 from previous year.
If you look at we maintain EBITDA margin strong at 38 like last year you know despite undertaking substantial investment in facilities and human capital in the current year that for FY25 was 83 crores along with improved margin of 31% versus 27% in last year adjusted ROCE and ROE continue to stay strong at 33% and 25% respectively in overall profitability and margins for FY25 demonstrated a strong performance coming to assets and capacity utilization trend. Last year was year of significant CAPEX addition as ANIL mentioned as we have added new machines and new additional facilities with fleet of new 141 large emissions the plant capacity of UDIMAC has now increased from 2.2 lakhs hours to 6.3 lakhs hours which is almost three times the first edition happened.
The majority capacity happened in last two quarters which is expected to be utilized to peak in coming 2 years time due to significant machine additions. Last year FY25 our capacity utilization as I mentioned before remained low close to around 55 to 58% kind of thing. However we expect that optimal level of utilization to be attained, you know in next 18 to 24 months. The success turnover ratio if you look at now for FY25 was at 2.3 times. Despite the increase in significant capacity addition during the year, we maintain this ratio Hindi we expect that as the capacity utilization this ratio can improve further we expect that in aero tooling segment it can easily be around 3.5 times while patient component sediment can be close to 3 times at peak capacity utilization level.
Now I would like to give some future guidance related to revenue and profitability side for the next financial year FY20 by 26 as an I mentioned we aim to achieve revenue growth of 40% for the next year FY25 26 the primary segment which is Aero tooling segment is expected to grow by 35% approximately. Just to give you some more information about the segment, this segment focuses on aero engine and airframe tooling in high mix low volume categories and always have a continuous order flow on daily and weekly basis and these orders are expected to be exhibited in short duration.
We are also working on newer commodity groups and continue to take bigger valid share from existing customers. Additional capacity creation, you know will always give opportunity for us to More work orders. While we do not have any LTA in this segment, but we can continue to guide the revenue growth in this segment on quarterly basis only. Coming to speaking about inauguration segment which has 8% small revenue base, you can grow by 75 to 80% approximately in next year. We expect majority of revenue to start flowing from third quarter as many clients are in the development stage and getting their first article order executed which means now the first half of the year will have lower orders and revenue.
This segment will see LTA and order flow from second half of year onwards. At present you know the segment as Anil mentioned focuses on onboarding new customers, completing fades and aiming for lta. We are confident that this segment will shape up well you know by end of this year. On the nuclear side, we’re aiming to participate in various tenders like EMCCR and new projects etc. And working towards getting accreditation for newer subsystems which enable our growth trajectory in this segment. For your information, you know as Anil mentioned there is a lot of traction happening in this segment in India from policy and execution point of view which will definitely create a bigger opportunity for us in the coming years.
We are very confident of growing this segment with a large harder book by.
Anil Puttan Kumar — Chairman and Managing Director
Year end.
Anil Puttan Kumar — Chairman and Managing Director
So subject to tariff impact. With a healthy pipeline of customer and the strong continuous order book compared to previous year, we are reasonably content to achieve this. The suggested revenue growth of about 40% kind of thing in FY25 26 coming to gross margin forecast our GP margin is expected to see slight comparison due to the first article for inflation etc. And we expect to maintain GP around the 60 to 62% range at the year end for the next year. For information, we haven’t factored the impact of US Tariff on this gross margin level. However there might be small impact once we get a clarity on tariff side.
Coming to EBITDA guidance the EBITDA margins will remain under pressure owing to the increased employees count and other operating expenditure. We have expanded our facility and increase employee during the last year. As you mentioned, all these initiatives have a full cost impact in FY25 26 affecting the margins to be lower than last year. We expect this EBITDA to be around 30 to 32% range. Profitability and other return ratios will remain slightly impacted due to increased cost in FY25 26 as I mentioned above and again we would like to emphasize that this year focuses more on investment CAPEX, completion of infrastructure, onboarding, new customer, completion of first article etc.
This year lays a strong foundation for future. Definitely all these efforts made in this year will bear fruit in coming next two to three years. Finally the focus of the founders team is to keep the costing, rationalize, improve efficiencies and maintain lean operating cost structure. We are investing heavy this year but we’ll always keep close eye on how external factors impact businesses and suitably suitable call will be taken to rationalize these investments and cost if required. Yeah that’s it from my side and thank you everyone. Now I’ll hand over my hand over this to my co founder co founder Mr.
Agrikant to update MND.
Rajnikant Balaraman — Whole-Time Director
Thanks everyone. I wanted to share updates on two important topics one day engineering and technology. UniMet currently owns 16% of DEA with a clear path to reach 30%. With the Indian defense push, there is strong strategic tailwinds with India’s Ministry of Defence launching the Jet Engine Banau initiative offering incentives for indigenous propulsion engine. DEA squarely fits in this mandate. Recent milestones the DET 500 microgas turbine achieved 20,000 rpm bench test combustion optimization is underway in partnership with IISC Bangalore certification Dialogue has begun with Semilac India’s military airworthiness. A co development MOU is being worked on with Czech turbine specialist for a 20kg 200 Newton thrust engine which is fully functional engines and on hand multiple platform OEMs like UAV loitering, munition and light jet segments have signal interest in joint ventures.
Once airworthiness gates are cleared, these steps derisk the technology and pull forward revenue visibility for UNIMEC as exclusive manufacturing partner in the future. Number two MA Outlook as per the strategic focus, we continue to evaluate pricing manufacturing companies in India and the US that can deepen our technical bench, expand capacity and open new customer channels. We remain disciplined prioritizing cultural fit, sustainable margins, synergies and fair valuation. We will only proceed when a target clearly meets our written thresholds and strategy criteria. As part of next steps, we will promptly brief the market once we have concrete definitive agreements.
That concludes my update. Operator, please open the line for questions. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press STAR and one on their touch phone Telephone. If you wish to remove yourself from the question queue, you may press STAR and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Akshay from AK Investments. Please go ahead.
Aakash Jaiswal
Thanks for the opportunity sir, and my first question is do our all revenue comes from the order book or there. Is some direct order like immediate orders as well as are there any relation between the revenue and order book? If you can help.
Anil Puttan Kumar
Hi Akshay. So when you. Yes, that order book something is which holds good for a three to four month of revenues that we generate. So our order book, as Anil sir mentioned in the opening remarks also is something that we keep on getting customized for IDs. That is on a daily and a weekly basis and basis which the order book keeps evolving and adding up. So last year if you have seen the. Sorry.
In the last quarter as on 31st December when you have seen the order book was over 100 crores and in this quarter it is closer to 93 crores. What has happened is due to our better execution we have been able to materialize better revenues. And hence our order book is also somewhat lower. But basis the demands and inquiries that we keep receiving from our existing customers and the new ones, we keep on adding the order book. So this will something which will be holding close to around 100 crores whenever we report until there is a very significant push or a significant order coming across.
Akshay
Okay, sir. And secondly, sir, in the opening remarks. You have said that we will have. Some impact on first two quarters because. Of the tariffs and all. And once we have the clarity about. That, we will get new orders. But in last conference call you said.
Anil Puttan Kumar
Akshay, we are not able to hear you clearly.
operator
The line for the management must have been disconnected. The next question is from the line of Arvind Anant Narayanan from Valuequest Investment Advisors Private Limited. Please go ahead.
Arvind Ananthanarayanan
At the outset. Can you hear me please?
Anil Puttan Kumar
Yes, we can.
Arvind Ananthanarayanan
Wonderful. So congratulations on a good set of results. Just wanted to confirm what is our outlook as far as MLDA is concerned. Are there any candidates that are identified? And considering the tariffs in the US environment, are we looking for any acquisitions in the US and what could be the timelines in which any such acquisitions could be done? Thank you. Yeah.
Anil Puttan Kumar
So on the mn.
Arvind Ananthanarayanan
Yes please. I can hear you. Please proceed.
Anil Puttan Kumar
On the MNA front, we are working extensively. Operator, there’s a disconnect on the line. So there’s a static noise. Is there only my issue or.
Arvind Ananthanarayanan
No, I’m not able to hear you very clearly either.
operator
Okay, so I guess there’s. Mr. Arvind, there’s an issue on your end.
Arvind Ananthanarayanan
I don’t know whether there is an issue at my end. But is it better now?
Anil Puttan Kumar
Sure. It’s Better now in any which way. If the line again echoes, I’ll request on the other side that you can mute please.
Arvind Ananthanarayanan
Yes, I’ll do that. So that you can just. The only question I had essentially. So.
Anil Puttan Kumar
Okay. Yeah. So on the MNA front there has been extensive efforts that we have already doing. So we have been exploring opportunities both domestically and internationally. US being one of the most preferred territory as it will open us to avenues which the opportunities which do not come to India. So US is what we are extensively working towards. As mentioned in the opening remarks by Mr. Rajinikanth, we are looking for a strategic fit which will not have an impact on our existing margins. Also the opportunity should be something that should fit to the amount that we have allocated towards.
So these are certain areas that we are very extensively working towards. However, we want to close this as quickly as possible. You will definitely see some results in a quarter or two from now.
Arvind Ananthanarayanan
Understood? Understood. And just as an aside, we are looking into other areas. But there is a substantial demand in the aerospace side. So are we also looking to bolster over there or are we consciously de emphasizing that in favor of other areas?
Anil Puttan Kumar
So we are open to acquisitions. It’s not. We are specifically targeted to acquire something which is there in aerospace. Yes, if there can be a extension of what we do, we’ll be happy to look into. But on the other side there are enough number of opportunities. Speaking specifically of us, there are enough opportunities to get into defense, energy, oil and gas. So those are also other sectors that we are extensively eyeing towards.
Arvind Ananthanarayanan
Understood. Thank you very much.
operator
Thank you very much. The next question is from the line of Harshit Patel from Equerious Securities. Please go ahead.
Harshit Patel
Thank you very much for the opportunity. Firstly, on the bookkeeping part, last time you had mentioned the share of revenues from the top four top five customers for the nine month FY25. So. So if you could give that data for the full year FY25 that will be very useful.
Anil Puttan Kumar
One question this customer was details. We are publishing in the annual account. Form. Part of the notes three accounts customer wise of more than 10%. Each customer is contributing those details is compart of the annual notes to the annual account.
Mani Puthan
Okay. Harshit. So yes, there will not be a very invariable change what we would have mentioned in the last quarter. Those are on the similar lines. The customer concentration will not have moved too much is what I can indicate.
Harshit Patel
Understood. Secondly, as you explained we have expanded our capacities for both tooling as well as precision components very substantially. So what kind of Further expansion we are planning so your guidance for Capex for the next couple of years.
Anil Puttan Kumar
So yeah, just to tell you yes the expansion has been a very rapid one. Last year or December 31 we were sitting at around 44 lakh 70,000 machine hours. We have ramped it up to 6.22. Now we are also adding new facilities basis further orders that we expect. One order that Mr. Anil would have mentioned on the call was the engine sands that we are eyeing towards that gives a good opportunity to us. So to handle orders like these. We are also expanding into further units. So these units will again enhance our floor capacity to somewhere close to over the machine.
Our capacity close to around 8 lakh hours. Taking our floor capacity somewhere around over 3 lakh square foot. Saying this opportunities are there in the segment. There are enough number of opportunities also coming on the nuclear and the precision segment. So the capacity addition in terms of machinery around 60% has. 60 to 70% has happened during 3-31-2025. However some bit of portion is also spilled over to FY 2526. You will see some bit of expansion. However all these capacity additions that we are doing will hold good for next three years that we have. There will be certain capacity addition FY20,526 which will hold good for until FY29.
The idea will be to enhance the utilization levels from here on. Currently sitting at around 55 58%. Idea will be to take it to optimal level of around close around 85 90% in next three years.
Harshit Patel
Understood. Just lastly on the tax rate front. The tax rate for the full year FY25 was only 18%. I believe that it would be on account amount of tax benefits at our Innomac SE Z facility. What would be our blended tax rate for the next three to four years?
Anil Puttan Kumar
So the next five years now this financial year, you know 18 per mat and next year onwards if MAT will continue for the 50% of the. You know the profitable the profits book profits and other remaining 50. The normal corporate tax rate would be applicable for the next 10 years.
So it means 50 tax bracket. Now we will come to. And maybe I my guess is more you know kind of going forward. You know the MAD provision could be maybe 21 kind of mat provision. We might we’ll make as of now 1818 plus percent will be made.
Harshit Patel
Understood. Perfect. Thank you very much for answering my questions and all the very best. Thank you.
operator
Thank you very much. The next question is in the line of Comradesh Jain from Lotus Asset Managers. Please Go ahead.
Kamlesh Jain
Yeah, thanks for the opportunity sir and congratulations of adding a lot of new OEMs during the 525 going forward. Like the depreciation components is roughly around 15% as of now and we had articulated that it would move up to 30 odd percent over next two odd years. So my question was in regards to the margin trajectory, so the margins which used to be 40 odd percent would now that go to like say 35 odd percent level. So on a structural or steady state basis.
Anil Puttan Kumar
Yes, you are somewhat right. So the compression will be there as we are entering into the Precision segment. But the idea is also to have a longer term arrangement. When we foray into a segment called Precision or the Nuclear, that segment will also give us additional advantages because India is progressively becoming progressively eyeing towards getting a higher share of developing energy reactors. So that will give us a larger order book, larger revenue to come across eventually I believe once the company grows, margin compression will be there, but it will still be much better. It will not be as high what we have delivered in last financial year, but it will not be below the 35% benchmark EBITDA margin is what we are never targeting below that.
Kamlesh Jain
Okay. And lastly like in the last quarter we had alleged that there was some delay in licensing or renewal of licensing. So all that thing is done now. And could you please share the order book in both Aero Tooling and the precision components.
Anil Puttan Kumar
The issue that was there last quarter has been all sorted out in terms of the licenses we had already mentioned in the previous quarter call itself that that was once in a decade issue and it will not. It was overlooked to an extent and will not happen. So that was something we are very confident of. On the other side, yes, opportunities are there in the precision segment to give you an order book. On that side we are eyeing towards the tenders which are open. Once there has been an application towards the tenders we will be able to give you a quantitative number towards it.
On the overall book we can guide for the orders that we have in hand is close to around 93 crores that we’ve also mentioned in our presentation. We’ll continue to stick to that but in case of any further development that comes through, we’ll be happily communicating to the street.
Kamlesh Jain
And lastly micro 10% revenue growth and given the fact that there is an immense potential in the Aero Tooling and all Those businesses like 10% revenue growth and the capacity buildup which we have done over the last one year. So it looks disappointing that even in last quarter we had significantly and we haven’t been able to capture that lost opportunity in the last quarter. And I think a 40 odd percent revenue growth for the next year. So how confident are we? Because there are trade dispute issues and even the order book that’s not also that much increasing like say 90 and they don’t crore order book.
Anil Puttan Kumar
What I mentioned order book is something that holds true for next three to four months. Obviously in for the first two quarters. Until the negotiation on the tariff crystallizes. There will be some slowness and this is what we are guiding for next quarter one and mid of quarter two. There will be some slowness in the tooling segment. But this will not hold for the entire year. The management is getting inquiries. There is enough number of demand with our existing customers also with the new ones that we are doing want to do business with. So the idea is because of the growth in the tooling segment 40% of the business in revenue growth is very much achievable.
We are eyeing a 30 to 35% of revenue growth in the aero tooling segment. That is also possible because of the talks that we are having with our existing and the new clients. So basis that we are able to tell you 35% growth in the tooling segment is quite achievable. And on the overall 40% growth will be achievable because of the other precision and the nuclear segment that we are entering.
Kamlesh Jain
Thanks a lot and best of luck.
Anil Puttan Kumar
Thank you.
operator
Thank you very much. The next question is from the line of Bala Subramanian from Arihant Capital. Please go ahead.
Balasubramanian
Good morning sir. Congratulations for a good set of numbers. My first question regarding the tariff side. I think we have 80% revenue exposure from us and right now the tariff rates around 10% like the tariffs are completely bound by the customers or if you are any sharing basis 5% to the customers or 5 percentage over how this tariff arrangement works and how we look at next few quarters.
Anil Puttan Kumar
So on the Paris side. Yeah, you know it’s difficult to estimate, you know the impact probably. I mean the kind of indication what you mentioned like you know some percentage customer might ask us to be some.
You know they may be. You know all those permutations probability is there. But see what we see. Like you know While you know 80% offer of export is no to us. But our customers always know indicate as we we as you know we are a green channel partner. There is always possibility of you know state, you know, drop shipment, you know to end customer build to us and no drop to you know the destination different Destinations, you know, other than out of us also. So if customer emphasize on that. No the impact of tariff, you know due to by adopting, you know, the drop shipment strategy, you know the impact would.
Would come down. As of now we are, we. We are. We haven’t yet to know how the impact is going to be. But yeah, we. We’ll wait for the final. Yeah, maybe my other co founder would like to add something. Hi.
Rajnikant Balaraman
So firstly on the tooling side, among our top customers, 80% of the tooling that has been manufactured are being consumed outside us. Even though it’s been built. 80% to us. 80% of the manufactured goods go outside us. So we are working with a customer on an arrangement to ship directly to those location instead of sending it to us. So there is a tariff thing for a 20% that it’s going to basically do. And you know, it’s harder to speculate on where the tariff would land. It’s anybody’s guess. So we are still looking at where that will land and how we’ll work on that 20% part.
But the good part is that we are shielded from from that perspective in terms of, you know, the product being shipped outside US for 80% of only.
Balasubramanian
Got it sir. So basically currently we only taking care of the tariff side side sir, not the customer.
Anil Puttan Kumar
Sorry, could you repeat that question please?
Balasubramanian
Currently this 20% is of part of export. The remaining 80% is shipped to different location. Is 20% of our tariffs. We are taking care of it right from outside.
Rajnikant Balaraman
20% for the 20% it’s been shared between the tariff. It has been shared between Unimic and our customer.
Balasubramanian
Okay, got it sir. Answer. Actually one of our competitor talked about around 7 to 800 crores of inflows for nuclear reactors and resourcement and all. So like especially are we also supplying around multiple subsystems? I just want to understand what kind of product of our nuclear reactors we are focusing on. And you mentioned about 400 to 500 crores of order inflows. Like how do we look at in this space for opportunity side? I think how many quarters it will take to finally lose orders?
Anil Puttan Kumar
I think we’re not able to hear you completely but I think we can get correctly the rewards. You’re asking us how many quarters does it take to conduct metallurgy?
Rajnikant Balaraman
What are the different commodities that we.
Ramkrishna Kamojhala
Are doing for nuclear industry?
Anil Puttan Kumar
There are various core subsystems actually so I would not be naming anything here in the call but there are at least about 10 to 15 subsystems that we are working on getting qualified and we are confident that, okay. We would be. Giving a competition to our competitors also on this segment on these kind of subsystems. Okay. So we are, we are waiting for most of the tenders to open and I think in next one or two quarters we hear a lot of positive details about these tenders.
Balasubramanian
And we also doing for refurbishment site also right now.
Anil Puttan Kumar
Yes.
Balasubramanian
Okay, thank you sir.
operator
Thank you very much. The next question is from the line of Sunny Bhatia from AM Investments. Please go ahead.
Saini Batra
Good morning sir. Congratulations on a great set of numbers. Sir is mentioning about some other book opportunities which I actually fail to sort of here too. Could you reiterate that for me please? Yeah.
Anil Puttan Kumar
So the order book opportunity on the nuclear side that we have mentioned is there are, there are enough number of reactors say for BSR Bharat small reactors and small and modular reactors that are coming across. That is one opportunity. In terms of repair and replacement. There are around five nuclear reactors for which the tenders will open shortly. And we will be in the process of applying that. That is another segment on the overall side. Government of India through its budget has communicated that there is close to around 7,800 megawatt of energy production capacity that will be generated basis which enough number of repairs and replacement also will come across in the industry.
So we will be also targeting towards building parts and replacing parts for all the subcomponents for these reactors in place. That is one on the tooling segment in the precision. Sorry, that is one on the nuclear side. On the precision segment also we are exploring opportunities currently targeting OEMs to build our order book. So once we are able to get them across and get a good order book generated from them, you will see a better or a more robust order book from our side. Additionally, what Mr. Anil also mentioned in the in his opening remarks was there is a new product segment coming as an Indian stand that we are eyeing towards.
That will also give us a good long term arrangement on the order book. So these are five, six segments and coming that will add on to our order book coming from OEMs coming from our nuclear facilities and nuclear power projects domestically.
Saini Batra
Okay. So secondly, with so many products coming in and us exploring the nuclear side as well, do you see a segment shift in terms of the contribution that comes from every segment? Do you see that mix changing in the near future?
Anil Puttan Kumar
It will not change very drastically. The tooling segment will continue to hold the lion’s share. It is in next three to four years you will see a significant ramp up from the nuclear and the Precision segment. The idea is to get to a 6040 mix in next four years down the line that you will see in our in our revenue mix.
Saini Batra
Okay. Okay. Thank you so much sir. That would be from my side. Congratulations. Thank you. Thank you.
operator
Thank you very much. The next question is from the line of Raj Mohan V. From an individual investor. Please go ahead.
Rajmohan V.
Yeah, thank you for the opportunity. Hope I’m audible.
Anil Puttan Kumar
Yes you are.
Rajmohan V.
Yeah. My first question is on the machine capacity. It has increased significantly to about 6:33,000 hours over nearly three times last year in capacity and is further planning to increase it to 8 lakh hours. Now though you have indicated to 35 to 40% growth in FY26. What kind of capacity utilization would we be seeing in FY26? From the current around 50s. And then also could you give some idea about what kind of capacity utilization will happen in FY27?
Anil Puttan Kumar
The progression will be bit linear. So what I can say, currently we are at around close around 55, 58. Next year the target is to achieve somewhere close to 70. 70, 75 maybe reaching around 80 also on a very optimistic side. But just to give you a point here, capacity utilization will only start improving as and when we qualify and have more products in line. Currently the idea that we are currently doing is there is most of the first articles and development orders that we are generating and building towards. So this will have some pressure on the utilization levels also as these will be very small orders.
So next year what you can assume are 75 to 80%. Beyond that by FY28 you can clearly see a roadmap towards the 85 to level to 90%. But you can fairly assume it could be an 85% to 90% buy. Yeah, FY28 and FY29 distributed. That can be arranged.
Rajmohan V.
Okay, so based on further extending into this and trying to understand it a bit deeper as your mix sort of enhances with you being eligible for a higher wallet share inside your customer, will this 85% capacity utilization in 28 mathematically lead to a proportionate increase in revenue or would the revenue increase be more than proportionate?
Anil Puttan Kumar
So the 80% increase in the utilization levels will obviously give an better revenue growth. The idea that you have already been hearing from US is a 40% target for next financial year. So as and when we increase capacity, obviously our wallet sizes and the order delivery capacity also enhances. So hence you will see a better number.
Rajnikant Balaraman
Another thing to remember is we are end to end manufacturer. So machining is an aspect of what we do. Whereas in addition to machining, we have assembly, we have welding, we have other services that is there in play. And you know the proxy has always been using machiners as a proxy. So there’s all these that actually coming to play. Adding in revenue margins.
Rajmohan V.
Okay, so fine. One question on margins. You indicated to 32% margins in this fiscal. Where do you see it heading in FY27 and beyond? Because based on the mix we are targeting, will it remain around that 32% or it has the potential to head higher with operating leverage kicking in from FY27.
Anil Puttan Kumar
Yeah, so rightly said the operating leverage will come from FY27. Margins will not be as low as what we are thinking of this year because it’s not from the point of production of manufacturing capacity. It is mostly from the point of the additional cost that we will have in FY26PNL in next financial year. Though we are not guiding for a very long term number right away what you will be seeing in FY20 FY26N.
Rajmohan V.
So operating leverage will kick in. So my final question is you have indicated the 35 to 40% growth in FY26 based on the total capacity that you are currently envisaging of hike hours. This 30 40% growth is what will sustain over the next three years. Or FY27 could see a bigger leap because several things will fall in place and come into play.
Anil Puttan Kumar
See the target is to keep growing at a 40%. While we were out there during our IPO road shows also we would have thought of delivering a 40% growth for next four years. So that will continue to hold. We have an ambition of achieving thousand crore sales by end of FY29 and we’ll continue to work towards that in between. But every financial year we’ll continue to guide what the next financial year looks like. There are enough number of geopolitical issues also that might come into play and basis which we can we’ll have to moderate or enhance our guidances for the next financial year.
Rajmohan V.
Fine. Thank you very much and best wishes to such a young team who have embarked on quite a esoteric kind of part. Best wishes.
Anil Puttan Kumar
Thank you.
operator
Thank you very much. The next question is from the line of Sonia Lalwani from Valuequest. Please go ahead. Hi everyone.
Sonia Lalwani
Congratulations on a good set of numbers. Couple of questions from my end. In the last con call we had discussed that there was an order from the nuclear on the nuclear end which we were not able to deliver. Did we deliver that order this year in this quarter or Is it still standing in our order book?
Anil Puttan Kumar
It’s still standing in order book. I think we are going to ship it ship a lot of these subsystems by Q1, Q2. And I think as we mentioned last, in the last quarter the delivery delay happened not because of the execution issue. It was purely because of the standard part quality issue that we had that we bought it from one of the approved vendors from the oem. So with the kind of, you know, the bought out issue had a kind of cascading effect on our final assembly and testing. Since we have the test station, we have only one test station which can.
Which can able to test certain number of assemblies per month. The kind of the delivery schedules have shifted to write. Okay, so now all these are technical glitches were, you know, solved and we are confident we are going to ship it in first and second quarter.
Sonia Lalwani
Understood. The second question was on the Aero tooling versus the precision manufacturing. Could you give us the preup of these segments for FY25?
Anil Puttan Kumar
So aero tooling is close to around 85% of the revenues and the balance is coming from the precision. And, and this is for FY25 and not just for quarter four. It would be on the similar range.
Sonia Lalwani
Understood. The last question that I had was in terms of employee benefits. We have been seeing an increase given the hiring that has been done by the organization at the employee cost has been around 11 to 13 crores. But this quarter we see a dip in the number. Can you explain what has led to that?
Anil Puttan Kumar
Okay, so it is the primary reasoning like you know, all the quarters, like you know, whenever closing happens, like you know, on a conservative required a kind of maybe variable bonus or any other kind of benefits. Now we factored at a full H level considering all employees.
So you know, factoring no resignation, all those stuff, you know. So we, we taken enough provisions in every time, you know, and however March quarter is the time where need to be, you know, certainty actual and employees. So you know, based on actual performance and employees who are completed number of. So whatever. You know, based on those kind of HR stuff, you know, the provision has been finalized. So any kind of, you know, differentials has been reversed. So you, you will see some kind of positive impact, you know, in the employee benefit. But it is not that.
No there is a headcount drop or anything. It’s like, you know, so the provisional, you know, kind of, you know, finalized provisions and anything of you know, excess kind of thing also need to be neutralized. That’s a kind of, you know, event has happened in Q4.
Sonia Lalwani
Thank you, Ramsay. That’s it for my time
operator
Thank you very much. The next question is from the line of Vaibhav Jain, an individual investor. Please go ahead.
Vaibhav Jain
Yeah, hi. Am I audible?
Anil Puttan Kumar
Yes.
Vaibhav Jain
Yeah. Thank you for the opportunity and congratulations on a great set of numbers and. Taking it out of the park. In terms of execution, just continuing on the nuclear segment. I wanted to understand, you know, what are the terms of trade there? Like what kind of a cash conversion cycle. We’re looking there and you know, what is our vision for that business.
Anil Puttan Kumar
Fine. So the nuclear segment, which we started in 2020, started with one subsystem which successfully now we win the order and you know, continuing the delivery. So our vision is to participating in, you know, the major reactor programs that are coming up. You know, whether it is a replacement program like EMCCR or the new projects, you know, which is 11 reactors reactor is already tender out and you know, wanted to participate in that.
And we wanted to, you know, well known for the, you know, electromechanical subsystems related to nuclear subsystems. You know. So we. We wanted to accurate as many subsystems in nuclear as possible and continue to participate actively in the upcoming nuclear projects. So when it comes to guiding for any kind of tender that comes up and you know, the materialization of cash or revenue or cash. So if you look at now the current uh tenders like EMC share is happening. It is expected that in a four months time, you know, or three months time, you know, complete pivot will be in hand, you know, for window.
And it is such transactions such tenders now would take, you know, 15 months kind of time. Now in terms of the lori by the. When we win the order, we will have a delivery time of 15 to maybe.
Vaibhav Jain
Right. And so the terms of trade as in what are the milestones for revenue recognition and when will the payment?
Anil Puttan Kumar
Sure. So now. Okay. While referring again the recent tenderness so that I can do better information. If you take into consideration which is a replacement for eczema would have more quantums quantities. These quantities now can be filled in a bunches.
It means other than when we. It is not that. No, it has to deliver after 15 minutes. It can be filled in a milestone basis like some kind of quantity quantum delivered at appropriate times. So it means from there 75 days would be there, you know, for the cash realization.
Vaibhav Jain
Okay, okay. 75 days. Okay, got it, sir. This one. Just curious. So we’ve added some long term debt. You know, this year we even though we raised the funds from IPO and a lot of balance of our cash and investment is sitting on our book. We still raised some a little amount of long term.
So just wanted to know wanted to understand the logic behind that.
Anil Puttan Kumar
Yeah. Our plan see the long term loan we raise the last year is expected to be repaid in the coming months which is anyway mentioned in the IPO objectives. So the cash which is sitting you know is. Yes. Some amount is to repay repay for the loan and the remaining cash is marked for the two objects. One is for Monday which is predominant portion is there and which we raised in a pre IPO time. And another balance amount is the balance in IPO place post debt repayment.
You will have larger amount for the working capital and something.
Vaibhav Jain
Okay. So sir, again coming back to the nuclear segment. If I’ve understood correctly the replacement cycle is 15 months for our. For our products.
Anil Puttan Kumar
Yes. So the delivery time you know indicatively it depends on the product type also. But I’m just referring one product. Yes. Which we are now right now tendering out now. So I don’t know participating tender 15 to 18.
Vaibhav Jain
Okay. Thank you so much. Thank you and all the.
Anil Puttan Kumar
Thank you.
operator
Thank you very much. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants of the conference, please limit your questions to one per participant. The next question is from the line of Rahul Rajani from Maheshwari Investors Private Limited. Please go ahead. So your live and transfer.
Rahul Rajani
Good. Good. Thanks a lot for the opportunity. I had just one question on the acquisition which we have is the value of the acquisition and are we planning to acquire like hello
Anil Puttan Kumar
could you repeated you not being clear. Sir.
Rahul Rajani
Yeah. What was the value of the acquisition? What is the valuation of the acquisition. That we have done on the engineering and is there a plan to when is the plan to acquire the balance between and is there a plan to acquire the complete statement.
Anil Puttan Kumar
Okay so your question is on there and your question is what is the. Valuation of their and what’s the plan to acquire the remaining 14%. Right.
Rahul Rajani
Yeah yeah yeah.
Anil Puttan Kumar
We we have signed up for the acquisition 30% sake as I mentioned now the remaining 40 will will when the first part approval completes complete. So my and you know they will ask us to. So the overall that time was 30 crores. 35 crores. So it means 10 we completed and balance 400.
Rahul Rajani
Thank you. And is there a plan to acquire the value 70.
Anil Puttan Kumar
No too early. Well you know not sure because our intent maybe you know having.
operator
Thank you very much. Next question is in the line Of Akshay from ATM investment Please go ahead.
Akshay
Thanks for the follow because of technical question is that what our expectation is?
Anil Puttan Kumar
We haven’t facted any from to from the aerospace and 2D segments so I just wanted to understand that the tolerance concentration in the aerospace what is the. Average life for the. Question is. So the toxin is very high in the aerospace industry. Okay. And we are talking each life cycle different Few of the companies on the. Defense though the aerospace is actually the. Largest contribution but we see this as a growing market.
operator
Thank you very much. Next question. This is the letter from Shank Jaik from Banning first please go ahead.
Shashank Jain
So actually first question is on the cash utilization so we are sitting with a charge of around 490 crore also and to basically go back to previous you mentioned that 50 20% of the CapEx has been incurred so how much are we looking to incur in the form of capex this year and how much will be incurred in form of working capital and how soon are we looking to reclaim?
Anil Puttan Kumar
Okay. The plan this year is to you know invest in capex up in the range of 75 to 80 crores investment will happen in the shop working capital the overall 60s here we plan very long 35cr will invest for the next year for the next financial year
Shashank Jain
are we expecting only 35% margin or are we like expecting to reach 40% margin sometime in the future
Anil Puttan Kumar
by 25 FY26 because of the cost that we are Incurring we will have some compression. So that is the reason why we. Are guiding for 30 32% next year. When the operating leverage starts kicking in margins will be around 35%. We are putting a conservative number as of now that we can easily target. A 35% if the future benefit also. Flows in we will be able to target higher. But to be on a reasonable side we are commenting a 35% longer term.
Shashank Jain
The last if you can provide us link between SAI and production in terms of we can give that to you offline.
operator
Thank you very much. The next question is from the line of web of equated policies. Please go ahead.
Vaibhav Shah
Additionally what type of precision component are you expected to manufacture for them for instance?
Anil Puttan Kumar
Right. You were asking about the nature of components that we are going to manufacture for the precision segment as well as. Yes. So all these component what we we have onboarded the new customer are related to aerospace only and some are defense different sector. These are all you know the precision component and fewer assemblies are also there and our plan for the fission component assembly segment is do beyond air also defense and also participate in new ps the energy segment and semiconductor semiconductor.
So in the semiconductor also the customer whom we have onboarded in recently the nature of product would be this could be used by the supplier for the OEMs in building the semiconductor so tooling where it’s used as an auxiliary device.
Rajnikant Balaraman
To build something else in precision component section these components actually go into the actual thing whether it’s an airplane defense component, semiconductor machine manufacturing, it basically goes into that.
operator
Thank you very much. I now hand the conference over to management for closing comments.
Anil Puttan Kumar
Hi, thank you. Hope you have been able to answer all your questions. Once again I would like to assure you all we all strive for achieving the guidance also build a much bigger order group by end of this year. Reducing customer concentration risk and strengthening the business resilience might have some near term. Impact but overall UNIQ is very confident. On delivering good results. Thank you all.
operator
Thank you very much on behalf of Karan Rajesh and Stockbrok Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines.