Wpil Ltd (NSE: WPIL) Q3 2025 Earnings Call dated Feb. 12, 2025
Corporate Participants:
Prakash Agarwal — Managing Director
Analysts:
Devesh Kasliwal — Analyst
Unidentified Participant
Deepak Purswani — Analyst
Saket Kapoor — Analyst
Sonam H. Udasi — Analyst
Agastya Dave — Analyst
Vineeth lambu — Analyst
Samir Palod — Analyst
Presentation:
Operator
Ladies afternoon, ladies and gentlemen, good day, and welcome to the Q3 FY ’25 Earnings Conference Call of WPIL Limited hosted by Antique Stock Broking. 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 any other 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 Mr Devesh Kasliwal from Antique Stock Broking Limited. Thank you and over to you, sir.
Devesh Kasliwal — Analyst
Thank you. Good evening, everyone. On behalf of Antique Stock Broking, I welcome you all to Q3 FY ’25 post-earnings conference call of WPI Limited. To discuss the results, we have — we have Mr Prakash Agarwal, Managing Director and Promoter; and Mr K.K. Ganariwala, Executive Director.
Without any further delay, I request Mr Prakash Agarwal to start with his opening remarks. Thank you, and over to you, sir.
Prakash Agarwal — Managing Director
Thank you. It’s a pleasure to welcome you all to our earnings conference call for the 3rd-quarter and nine months of FY 2025. Let me first start by thanking our host, Antique Stock Broking for hosting today’s earnings call.
To take you through the financial performance of the company, I’m followed by the operational highlights. For the quarter under review, consolidated revenue from operations reached million. EBITDA was $481 million with EBITDA margins at 12.6%. Profit-after-tax amounted to million with PAT margins at 9.72 million. For the nine months under review, consolidated revenue from operations reached $12,350 million, representing a growth of 15% year-on-year. EBITDA was INR2,127 million with EBITDA margins at 17.22. Profit-after-tax amounted to INR1,503 million with PAT margins at 12.17%.
On a standalone basis, quarterly revenues grew to — sorry, were at 2,175 million with EBITDA increasing to million and EBITDA margins at 15.08 million. Net profit was $203 million with PAT margins at 9.33 million. For the nine months under review, standalone revenues from operation reached INR7867 million, EBITDA at 1364 million and EBITDA margin stood at 17.34%. Net profit grew to INR978 million with PAT margins at 12.43 million. As of December 31 December 2024, our international order book stood at INR5,482 million, while the domestic order book for the project business was at $25,900 million and domestic products order book was 3,988 million.
On the operational front, the pump division maintains a positive outlook supported by a robust inquiry pipeline, particularly for drainage pump orders from Thailand, which are in advanced-stage. Meanwhile, the project division saw revenues rise to INR5,720 million in nine months FY ’25 compared to INR4,740 million in Nine-Month FY ’24. Project execution momentum slowed down in the quarter as outstandings drastically increased. Despite these challenges, project construction remained on-schedule with expectations of revenue in the next recovery in the next fiscal year, following key announcements in budget in budget 2025. We also expect the pace of new tenders to pick-up going-forward and we expect to see good growth in this segment next fiscal onwards.
On the international front, WPL revenues increased to INR4,540 million in nine months FY ’25 compared to INR4,310 million in nine months FY ’24. Grupo Aturia is witnessing strong traction in the MENA region, driven by revival of postponed contracts following geopolitical stabilization. WPL South Africa has strengthened its market position, further benefiting from acquisition, which is set to execute large contract over the next 24 months.
In a strategic move, WPL has also entered into an agreement to acquire a 55% stake in Patterson Candy International Africa, further reinforcing its presence in Southern and sub-Saharan Africa with combined revenues expected to exceed ZAR1 billion. Additionally, turning pumps in United Pumps continue to maintain strong order books, while WPL Thailand is benefiting from significant investments in the country’s water infrastructure.
As part of our long-term growth strategy, WPL has made three key strategic acquisitions in FY ’25 to develop an international turnkey project divisions. These include in South Africa, which focuses on water and wastewater solutions with an estimated revenue of EUR700 million; Missa SRL in Italy, a provider of pumping solutions across Europe and MENA, specializing in irrigation and drainage sector with revenues of $900 million and Patterson Candy International, which specializes in water and wastewater treatment solutions, positioning WPI to benefit from South Africa’s infrastructure expansion with revenues of INR2,150 million. These acquisitions would contribute over INR3,750 million in revenue and significantly enhance WPI’s Turkey project division, which recorded FY ’24 revenues of INR8,000 million.
Now we can take the questions.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to withdraw yourself from the question queue, you may press star N2. Participants are requested to use handset while asking a question. Ladies and gentlemen we’ll wait for a moment while the question queue assemble first question is from the line of Saloni Modi from Fin Venture Growth Fund. Please go-ahead.
Unidentified Participant
Hi, sir, congratulations, sir. I want to ask — your voice is very low. Request you to please use your handset. Hello. I’m audible? Yes, please go-ahead. Yes, yes. So sir, I want to ask why the PAT growth is lesser than September 2024 quarter? What’s the reason behind that?
Prakash Agarwal
One of the major reasons was the slowdown in project execution, which normally picks up in this last quarter. There was a big slowdown in funds disbursement for the mission which affected us as our outstandings grew drastically and we were not receiving payments. So we had a low execution quarter and we hope this picks up in the next quarter and in the next.
Unidentified Participant
Okay. One more question from my side, sir. I think major cash is blocked in receivables. So what is the design?
Prakash Agarwal
The same reason the mission where most of our projects are executing was the funds have been blocked for the last six months and now in this budget, it has been cleared and we hope our receivables will be cleared shortly.
Unidentified Participant
Okay. Thank you, sir. Thank you so much. All the best for your future. Thank you.
Prakash Agarwal
Thank you.
Operator
Thank you. Next question is from the line of Deepak Perswani from Swan Investments. Please go-ahead.
Deepak Purswani
Sir. Yeah. Hi, good evening, sir and thank you for the opportunity. Sir, just wanted to check it out, as you mentioned about the project execution slowing down because of the receivables. Incrementally, what we are also noticing in the JJM scheme, most of the other players have also started receiving payment from Jan onwards. And then there has been a pickup in the execution. So just wanted to check it out, how has been the status with us? How should — have we seen any improvement in the payment? And what is the current outstanding in terms of the receivables?
Prakash Agarwal
No, factually what was very clear from the budget, the budget allocation was about INR70,000 crores from the center and the devised estimates show INR20,000 crores. So there was a big gap in funding in last fiscal. So this has obviously affected the projects which are under the scheme. Some states have put in the state funds. So depending on which states have given state funds and how much fund was disbursed, some people have received payments and we also have received payments from the state funds. But — and now with the most important thing is that with the budget clarification and fresh allocation for this year, now these projects are expected to gain momentum. So we are expecting our receivables to come down rapidly and execution to pick-up in similar fashion.
Deepak Purswani
So how much is the current outstanding receivable at the current venture?
Prakash Agarwal
Receivable is close to about INR400 crores, I think.
Deepak Purswani
For the JJM scheme.
Prakash Agarwal
For the JJM scheme, yes.
Deepak Purswani
Okay. And secondly, sir, on the budget front, there has been a lot of emphasis, but has been also put on the nuclear reactor side, right? And I think we earlier had some expertise on the nuclear pump side. So in that context, how should we see opportunities emerging for us in the Indian market.
Prakash Agarwal
As we — we have divested out-of-the nuclear sector because we feel that it is you know the timeframes of these nuclear projects and cost-benefit analysis did not favor it. So we are happy to be outside this sector.
Deepak Purswani
Okay. And sir, thirdly, on the international turnkey project, where we mentioned that aggregating all these acquisition will provide us a revenue to the extra of INR370 odd cred. If you can also throw some light in terms of the — how does that market operates in terms of the PG and LD conditions, how they are different from the Indian market, whether these are little stringent than the Indian market or EV? And what are the margin profile for all these acquisition at the current juncture? And how do we see this ramping-up over a period of time?
Prakash Agarwal
So our focus in-building the international business division is, we as a company believe in offering flow solutions. So in the domestic market, we were offering products and turnkey solutions. And in all our markets, we wanted to offer the same. Therefore, we have a sizable — we are presently operating in five major geographies. One is Europe, one is South Africa, India, Thailand and Australia. So in Thailand, we are already offering project services. And now in India, we were offering. Now we are offering in South Africa and we are offering in Italy. So this — what it does is it creates both, it creates visibility for our products as well as gets us closer with the solution model to our clients.
Deepak Purswani
Okay. And how does the margin profile looks like for these acquisition and the current junction.
Prakash Agarwal
It would not be fair. It is — these are very strong companies with very strong margins going-forward. So you know the presence of these companies, they are 100 years-old. They have very close relations with the clients. So it should be better than Indian markets.
Deepak Purswani
Okay. And sir, finally on the execution part, I mean, should we expect improvement from the Q3 Q4 onward with the recept of better payment from the government agencies or how should we look into it? And how should we look from the order inflow perspective?
Prakash Agarwal
So you will see — obviously, it will improve. It is — we were doing very well in the second-quarter and as in September, we were expecting funds. So our outstandings are rising and we were expecting funds, but that has got postponed in this budget. So we got affected 1/4. I think we will be back to normal. If not in this quarter should be improved and next quarter onwards, it should be ramped-up?
Deepak Purswani
And sir, just continuing on that part, earlier we were mentioning this year we would be doing execution more than the last year. I mean, last year we did INR800 odd crore this year, should we expect that we will do some kind of growth over that?
Prakash Agarwal
We are — say as you can see presently, our — we are already in nine-month period, we had a very good first and second-quarter. So 3rd-quarter was a bit subdued and 4th-quarter should be better. So we should exceed last year.
Deepak Purswani
Okay. Thank you. Thank you and wish you all the best. Thank you.
Operator
Thank you. Before we move to the next question, a reminder to the participants to ask a question, you may press star and 1. Next question is from the line of Saket Kapoor from Kapoor &o. Please go-ahead.
Saket Kapoor
Prakaji,, and thank you for this opportunity. Firstly, sir, as you mentioned that traditionally, sir, Q4 is among the largest of the quarter in terms of the pace of execution. But since the budget is — the budget has commenced and the disbursement and all the fillers will happen, I think so in the month of March, so how likely as you already mentioned that we will be above the last year number, but what is the current understanding as on January and February month-in terms of the receivable amount of moving in which direction? It was INR400 crore receivable number which you mentioned. How has that quantum moved in the — in these 40 days of this quarter.
Prakash Agarwal
So it will improve. You see, we are not, you know, drastically concerned about this. It is we have the clear dues from the clients. The clients were affected by this budget allocation, which is now resolved. How soon it will be disbursed will maybe affect us in March. If we get disbursed this month, it will help us in March. But surely in the — as we go-forward, things will improve and receivables will go down and execution will ramp-up. It’s a matter of time now.
Saket Kapoor
Okay. And sir, if you could just give us some more color on this, now the international business, I think so that part of the story should be insulated from what the judge given mission scheme and the receivables impact are. So when can we see the ramp-up from that part of the story and the bid pipeline, the opportunity which you are eyeing with the current acquisition. I think, so sir, earlier order book provide for international. It was only for the product business. But now going ahead, a good portion of it will be also in the project business. So if correct me there also, sir, if my understanding is correct and if you could give us some more color on the bid pipeline, the opportunity there.
Prakash Agarwal
So as I tried in this presentation, I have shared one slide. Now in this — to clarify, has already been a sort of in our company and we are already taking those recognizing the revenues from this quarter and it will ramp-up and you will get a — I will be able to describe it more clearly from next presentation. And we will be giving a year-end presentation on that also. Missa was acquired in January, so we will have 1/4 of performance. And PCI, the transaction will take, as I’ve said, till first-quarter of FY ’26. So I think surely as these companies transactions are completed, you will see them. And surely by middle of next year, you will have full color of all these transactions, their order books and how the revenues are looking.
Saket Kapoor
Right, sir. And sir, when did you start feeling the stress in the system in terms of the receivables? You mentioned about quarter two being — quarter two was a good quarter in terms of operations performance.
Prakash Agarwal
But you saw in-quarter two, we mentioned also this that we were concerned with this in-quarter two and that quarter we were concerned and we were hoping that things would improve in the second-half. Now that was — you see, we had elections and we had an interim budget. So that interim budget, they didn’t do anything about it and that has shifted to the full budget this year. So this you know that we lost that period. So it’s a bit out of our hands. I mean it got postponed, but we — the good thing was it was well-recognized in this budget and should be normalized soon.
Saket Kapoor
Okay. One small point and I joined the queue. Now, sir, the purpose of the presentation and all are always to give us an understanding. And I think so since our results, the time — that the lack time which it takes to upload your presentation, it — and it hardly provides us with 2025 minutes of time to go through the entire presentation before the call comments. So would request the team whoever looks after the preparation of the presentation to be slightly ahead of time, giving us at least a an opportune time to go through the presentation. As you mentioned that going ahead, you will be giving us more information on the international business part and what things may look like. So requesting you to give us the presentation in time — adequate time to us to go through it in details and then put forward the questions. That was a humble suggestion from my side. And I hope you will —
Prakash Agarwal
The answer is that the Board meeting length varies. So it’s not the team, it’s the Board meeting length, the discussion sometimes extend and that affects the result publication and post the results only we can share this presentation. And those numbers need to be then filled up. So it’s an administrative process. Only thing we could do is have it on next day, which we will review next time.
Saket Kapoor
Okay. And the capex part, sir, how much have we — have we built on building the capabilities for the nine months and for the next — for the next quarter, how much are we spending in-building up our capabilities for better execution.
Prakash Agarwal
So capex is not significant, so it’s not a discussion subject. That is insignificant.
Saket Kapoor
Okay, because earlier you have put forward a message to us that we had sufficient order and now we are beginning — we have been developing the —
Prakash Agarwal
Sorry, it is not through capex capability. You see probably project execution to — as the volume grows, the number of personnel we have to recruit, train and develop and processes, that is a challenge, you know. So that capability as a company, if you are operating at INR200 crore, INR500 crore, INR800 crore level, you need more trained people. So that evolvement of competency has taken time, not capital expenditure, not capex.
Saket Kapoor
Right, sir. And lastly on the product interrupt —
Operator
Mr Kapoor, may we please request you to read your question queue.
Saket Kapoor
I will join the queue again.
Operator
Thank you next question is from the line of Ravi Anand, an individual investor. Please go-ahead.
Unidentified Participant
Good evening, sir. Sir, we are expanding in South Africa. Do we have any plans of expansion in other African countries as well.
Prakash Agarwal
Yes, this company, if you see in my report, through these and, they cover most of Africa. And Africa, if you say sub-Saharan Africa is sort of central east, West and South. Southern Africa, we hope to cover from an Italian company called Missa, which is already having a strong presence there. So all of Africa should be reasonably covered.
Unidentified Participant
Right, sir. Second, which is how many domestic projects are expected to be commissioned in the next three to four months?
Prakash Agarwal
Five projects are in advanced-stage in the next three months should be commissioned.
Unidentified Participant
Right, sir. Sir, this Indian Navy project, have the trial been successfully completed or will it take time?
Prakash Agarwal
Majority have been done, 80%, 90% tires have been completed and most have gone into bulk production already. So the project is moving well and on-schedule.
Unidentified Participant
Right, sir. Last question, sir. This the business that we had sold to NPO in December of ’23, so there was some security money which was left, I think about 10% or something. Have we got that back-in our accounts?
Prakash Agarwal
So that is put in escrow and that timeframe was three years. So one year I think more only one in more than one year is passed.
Unidentified Participant
Right. Thank you, sir. Thank you.
Prakash Agarwal
Thank you.
Operator
Thank you. Next question is from the line of Devesh Tasliwal from Antique Stock Broking. Please go-ahead.
Devesh Kasliwal
Thank you. Good evening, sir. My first question was on the cash on books. So I’m sorry. So post the — post the sale of the nuclear pumps facility that we had. So after that, we had a cash on books and out of that we have around utilized around INR300 odd crores. So any additional acquisitions that you’re looking for in these regions to expand internationally or this will be utilized more towards the India business?
Prakash Agarwal
So we are looking at more acquisitions in Europe, we are primarily looking to — so these projects was one idea which we are doing. Similarly, we are looking at product expansion and we are in advanced talks and we will keep updating on that.
Devesh Kasliwal
And another question on that front. So you’ve mentioned in the presentation that these acquisitions will add around INR400 odd crores of revenue to the Turnkey project division. So — but from a longer-term perspective, like down the line four, five years, do these geographies provide us enough opportunity to maintain our margins as well as grow like at a CAGR of around 20% 25% at least?
Prakash Agarwal
These are very, very promising geography as we had outlined in our business strategy, the three areas which have a tremendous scope for water infrastructure growth were India, Africa and the MENA region, Middle-East, North Africa. And now we are present in all three. So we are moving as per our strategy and these are the most prospective regions for water infrastructure growth.
Devesh Kasliwal
So, one last question on the domestic front. So this — like we’ve seen if you look at the last two years as well, March has been a very strong quarter for us like in terms of revenue recognition, there have been delays from states multiple times. And we’ve been very cautionary overall on which states we are executing projects in. So on the domestic front, are you looking to expand your geographies to more states in the Mission post this entire receivables issue is sorted-out?
Prakash Agarwal
Of course. I think we see, as I mentioned in our thing, next year onwards, we see great traction because we have built-up a lot of competencies, our order books have come in control. These older projects are nearing completion and we have built very good qualifications for future jobs. And I expect that next year there will be say this financial year as per the budget and the outlook, we see good investments in water infrastructure across the country.
Devesh Kasliwal
So no-compromise on the margins as well on both the sides, domestic as well as —
Prakash Agarwal
I think it was a — this is a cash-flow issue. We could keep executing and client is very happy, but we are reaching our end of fiscal.
Devesh Kasliwal
Okay. Thank you so much, sir. Thanks, sir.
Prakash Agarwal
Thank you.
Operator
Thank you. Next question is from the line of Sonam H Pudesi from Tata AMC. Please go-ahead.
Sonam H. Udasi
Hi. Hello. Thank you for taking my question. Just wanted to hear your thoughts because in the earlier cycles as well, you know, we see sometimes governments not being able to pay upon time. So what is your own — you mentioned that you have reached your fiscal tolerance on that. So going-forward, how do you want to sort of save that yourself from this? Because ultimately a working capital issue means no profit you know, at the end-of-the day, if you get delayed money.
Prakash Agarwal
So I suggest we don’t read too much into this. I think it is very clear that this is a short-term problem brought about by the interim budget there. So the government did not address this issue in the interim budget when they came into power in July and this has been addressed now. So I don’t want to read more. However, — I am confident that things will be normalized very shortly.
Sonam H. Udasi
Okay. Thank you.
Prakash Agarwal
Thank you.
Operator
Thank you. Next question is from the line of Agastia Dhave from CAO Capital. Please go-ahead.
Agastya Dave
Hello, am I audible? Yes, please proceed. Thank you very much for giving me an opportunity. Sir, I have just two questions. One is on the non-government side domestic demand from the private sector. Is there any slowdown there or is there a pickup there? What are you seeing on that on that front?
Prakash Agarwal
Actually, we — our product business as we are — is doing exceedingly well this year as our numbers show and order book is also good. So it’s a little little bit of state elections and government budgets, which have a little bit affected these investments, but I don’t see any effect even in government or non-government areas going-forward. We see steady demand. I would not say it’s accelerated or anything abnormal, but steady.
Agastya Dave
All right. So I’m again sorry to repeat the question on the Jaljivan mission. But let me — I would just wanted to clarify certain things that I saw in the budget in the documents. So one was last year, they actually even in the July budget, a provision for INR20 — for INR70,000 crores was actually made and the government only spent INR22,000 crores. And this year the provision that they have made is around INR69,000 crores.
My, my question is that if I look at the two years a promise from the government, if I can use that word that they would be slowly approaching INR1 lakh crores because there is a lot of work that needs to be done, INR1 lakh crores of annual — annual allocations, but they have stopped at INR70,000 crores. And if I look at the two-year average number instead of INR70,000 crores average for every year, if I take INR22,000 crores and INR70,000 crores is substantially below that number, right?
Prakash Agarwal
Let me intervene here, you missed the critical part that the mission had expired in 2024 as per the document. First thing was the finance minister this year extended it till 2028. So the allocation without the extension of the scheme was not possible. That was the hurdle.
Agastya Dave
Okay. Okay. So even if I take that technically —
Prakash Agarwal
Now it is extended till FY ’28 and this year’s allocation on FY ’28 is about INR767,000. So now there is no ambiguity on that. That extension of the scheme, the one was supposed to finish in 2024, so the funds could not be disbursed. Now it is extended till 2028, which allows clarity there.
Agastya Dave
Okay. So sir, my question was that when the allocation for INR70,000 crores was made. So let’s keep it at INR70,000 crores, the wrong number. When the allocation for INR70,000 crores was made by the government, projects were subsequently awarded by them. So this INR70,000 crore number that we are seeing is already order books have been like order books have been filled up, you already have outstanding orders, everyone does. But the payments have not come in. Now they have not increased the number taking into consideration future projects. Joe, the shortfall of —
Prakash Agarwal
See they are — out-of-the INR67,000, we do not know-how much will go. Most of it will go to fill-up the gap for last year and only little —
Agastya Dave
Between any income that would be around INR50,000 crores and again using wrong numbers. So that leaves only INR17,000 crores for the next year. So is that math or understanding correct?
Prakash Agarwal
I think it’s an evolving area, but yes, it is very clear the mission is extended till 2028, so the number of awards will become reduced going-forward?
Agastya Dave
Right, right, right. That is exactly what I wanted to understand.
Prakash Agarwal
Correct.
Agastya Dave
Okay. And sir, is there any other project which the state governments are taking up to substitute the supply of such projects because again, the water problem has not disappeared. I was surprised to see in the budget they have mentioned that 80% of the country is getting pipe — water through pipes in their homes, which I completely disagree with. I can’t see any data to support that part. But so the work needs to be done. Why is the government shifting the priorities? That is something that I’m unable to understand?
And maybe it is — government has also shifted a lot of infra projects on the state balance sheets. They are saying that we will support the states and the states have to do the do the capex. So is there any talk at the state government level that they will be taking up the shortfall for whatever center is leaving on the table, they will take it up?
Prakash Agarwal
And water is a state subject, water supply, mitigation, rainage are state subjects. Now, the center has announced two schemes, one was mission for rural water supply and then there is Amrout two scheme for urban — water supply. So these two schemes are extra schemes by which the center government supports the state. Okay. The was a one-off which was needed to support the rural water supply. And similarly for urban projects, you are having the scheme. So these are further, then you have development financing, then you have state financing. But primarily this remains a state subject.
Agastya Dave
So one last request. If you — if you get some clarification from the government, it would be a great help to everyone if you can post a press release on the exchanges, if there is some clarification on all of this because I’m not very sure how the — how the orders from the government will grow over a period of time or will there be a sharp degrowth even though all the receivables may be settled, but what about new orders?
Prakash Agarwal
So that is to give you my view, for our company, it will be well-supported by the Board of fiscal — we will get the payment receivables and we will have enough sufficient tenders to bid for in our size. We are about INR800,000 crore revenues. So we are sufficient.
Agastya Dave
So a temporary hiccup is what we have seen in this quarter, sir.
Prakash Agarwal
Sorry?
Agastya Dave
This is a temporary hiccup. What we have seen this quarter —
Prakash Agarwal
Is that what I reiterated that we are completely confident that it will be normalized shortly.
Agastya Dave
So thank you very much for your time and clarification, sir. Thank you very much. All the best, sir.
Prakash Agarwal
Thank you.
Operator
Thank you. Thank you. Next question is from the line of Vineet Lambu from HSBC Asset Management. Please go-ahead.
Vineeth lambu
Am I audible? Yes, please go-ahead. Sir, I just want to know like is — and already participants have asked just from a view. So what would the pipeline because like from last 3/4, our order book is being going down as we are executing the projects. So on that regard, I just want to have a clarity like what is the visibility, what is the COVID pipeline looking like and how are the conversations going with the state agencies or central government agencies regarding.
Prakash Agarwal
So as we had mentioned last quarter, we had expected a pickup in the new tenders in the 3rd-quarter, but now we expect it in this quarter and going-forward, surely in next fiscal because there is a lot of pent-up work, which has not been tendered and we expect these to come to-market very soon. So we are not concerned exceedingly concerned.
Vineeth lambu
Okay. And about this INR370 crores of INR400 crores, which you have said that from the acquisition. This is overall two, three acquisitions together or it was a recent acquisition, which will be contributing to INR370 crores to INR400 revenues in the projects business? And also this would be our share on a — on our books or it would be on the company-level, PCI company-level.
Prakash Agarwal
So these are three acquisitions, as I explained in my sheet, three acquisitions which we made over the last six, seven months and consolidated they would turn out like this. Idea was to give a picture of what we are trying to do by these acquisitions and all of these will be reflected next year. So yes, you’re right, PCI would be — the revenues would be what I have indicated about INR215 crores was the revenue ’23 and so I think we will — we get — we will consolidate the full amount, but we will share the profit in INR55.
Vineeth lambu
Thank you. Thank you for the clarity and all the best for the next —
Prakash Agarwal
Thank you.
Operator
Thank you. Next question is from the line of Sameer Palod from AUM Fund Advisors LLP. Please go-ahead.
Samir Palod
Hi, am I audible? Yes, please proceed. MR. Prakash, thank you for taking my question. Sir, we’ve got used to consistent performance from this company over the last few quarters. And obviously this quarter because of just given related issues and outstandings we were sort of negatively — we were sort of surprised by the numbers. But your business — my point is your business is a little complicated to call, especially on the project side. Given whatever you’re seeing and now dues being cleared up and possibly tenders coming up.
What would be your best guess and guess in terms of execution for FY ’26 and maybe FY ’27, if you have that visibility in terms of top-line going-forward? You mentioned on to one of the earlier participants that you should achieve last year’s FY ’24’s sales numbers likely by FY FY ’25, but more FY ’26 and ’27, how are you seeing the growth in the project business.
Prakash Agarwal
Just to clarify, the first is on the project business, we have done about INR575 crore in nine months roughly. And last year we did INR800 crores. And the 4th-quarter is, you know, quite good. As I said, things are improving on the cash-flow. So we — but two, we have always maintained our fact that our business is not quarter-to-quarter. Earlier, we used to have very good last quarter and last-time we had a very good second-quarter. So it is dependent on various factors. And especially in — because we are linked with government, so budgets and elections, we are linked to that. Again, in the Middle-East, North Africa region, we are affected by wars there. So our business is the thing is it can be postponed, it does not get canceled. So the opportunities exist, but the scheduling obviously shifts in our business model.
And secondly, to further do this, we have now been — we are in the process of building our international project business to balance this off, diversify the risk, like we have done a product business. If you see in our product business, there is no question because it has been consistent throughout because it is well-diversified. Similarly, we expect our project business to be diversified.
Samir Palod
So if you were to be taking a guess of what would FY ’26 look like?
Prakash Agarwal
We cannot take a guess now. We will keep updating you how things go. This budget has been announced. We had said the same thing if you see my second-quarter presentation. I had mentioned that these concerns lie and we hope they will be resolved in the 3rd-quarter. Now we hope they will be resolved in this quarter and next fiscal as per the official announcement in the budget. And we should see improvement which we will update in the first-quarter.
Samir Palod
And sir, my second question is, you know, Jan Jivan mission has now been extended, but we’ve been discussing stuff like a lot of the — the incremental project ordering will not be as heavy as it was in the last two, three years. So do you see mission in the next two, three years of getting — making transforming itself at some other kind of project or the state-level or do you see a sharp reduction in the Indian project business that we have.
Prakash Agarwal
We are working in-the-water infrastructure project. There are urban water, rural water, drainage, there is irrigation, there is industrial water also there. Now here there was an interim scheme where there was a big shortfall in rural water supply. So the government came out with Jivan., please understand is a temporary accelerated effect for rural water supply improvement. Now even if that is done, there is huge requirement for water infrastructure continuing in the country and we will be having sufficient work and I mentioned this before that the opportunity in water projects is more than INR lack of crore, INR1.5 lakh crores. So we are booking or executing INR800,000 crores and with very strong qualification. So I think there is sufficient business going-forward.
Samir Palod
And sir, in your international project business, now that you’ve acquired a very good position in South Africa, et-cetera and you mentioned about INR30 crores of consol project-related revenues from your acquisitions. Is that — how was that business likely to grow? Can you shed some margin — light on what are the growth dynamics for those businesses and what margins do they operate and is there room for margin expansion given your involvement now?
Prakash Agarwal
So we have we see very positive, as I said, that our target areas from — when building our business plan has been to work-in India, Africa and Middle-East, North Africa region. Now we are present in all the regions which are very-high growth. I think Middle-East, North Africa and Southern Africa are even higher-growth than India right now because they need tremendous need for water infrastructure there. So we are there. I think we will update you soon as the transactions continue because this is going to be completed in the first-quarter. So as it evolves, we will keep you updated.
Samir Palod
Thank you. Thank you for answering my questions and all the best for the coming quarters. Thank you.
Prakash Agarwal
Thank you.
Operator
Thank you. Next question is from the line of Janesh Shah from — who is an individual Investor. Please go-ahead.
Unidentified Participant
Yes, sir. Thank you for giving me an opportunity. Just to get some understanding on the product business, basically for the nine months it has grown by around like 7% and with all the actions which we talk about in the international market could we just ge get some sense as to how this business is going to shape up in next 12 months-to 18 months? That is one part. And I think you also mentioned about the project — international project business currently having a revenue of close to 370 odd crore and it has a better margins than what we have in India if and if you can give that what kind of a opportunity size or these acquisitions can deliver over the next two to three years that’s what we can put. Thank you.
Prakash Agarwal
So regarding this international project division, the idea in this presentation was to explain our rationale and give a picture — a small picture about how it is playing out. Some of the main transaction of PCI will be completed in the first-quarter and we will be sharing numbers for the Eigenbau and Missa transaction in the year-end numbers. So I think we should — this is an evolving story, but I can say that the opportunity is very large. And once we share order book details and numbers of these companies, you will see. And so I think we should be a bit patient till this transaction is completed.
Secondly, so I think the product business is doing very well, robust, incrementally growing across globally. India, we made a big jump and we see a very positive feedback here.
Unidentified Participant
Yeah, but is it going to be like I think after we sold-off last year, the nuclear business, I think the product business generally was under a consolidation. And now it looks like that this year it will end-up with a growth. So are we aiming for a sustained kind of a high double-digit kind of a growth in this business? You’re also seeing the margins in the business more — but more towards more — leaning towards 23% 24% and do we see that I mean that sustaining with a higher-growth trajectory in terms of the overall for next two years or so, that will be helpful.
Prakash Agarwal
So our focus is on building our — one area was, as we have said and demonstrated is the international project business. Now we are also highly focused on the growing the product business. We are looking at multiple transactions because we — after selling the business, we are trying to grow in different geographies and product lines and those discussions are active and hopefully, we should have some more feedback on that soon. Organically, all our businesses are doing well as we have mentioned in — be it in Australia, be it in India, be it in South Africa, Thailand. So the only one which was affected a bit was Athuria because a lot of projects were held up which are now clear. This Gaza strip was creating a lot of instability in the region that is sorted-out. So hopefully, all of them are progressing well and inorganically we are looking at a few discussions and hope to come back with some news.
Unidentified Participant
So after these acquisitions, I mean whatever has been acquired and in the pipeline, how will be the cash balances will remain with the company just give some understanding? And as you mentioned that there are some outstanding which are there with the government on the project side in India, how are the working capital looking like at this point in time? And maybe over next six months, how do you see the working capital shaping up? Is it — is it going to get picked-up or when or you already mentioned about the fiscals always, but then if you can just explain a bit more with the numbers, our concrete numbers that we had.
Prakash Agarwal
So I said that this outstanding should come down very soon and that should normalize Indian cash flows. And our international cash reserves are still very strong and we are very well-funded with our cash reserves and cash generation for normalized for these acquisitions. So only if you have a very large acquisition will we have to review where we stand-on the cash position.
Unidentified Participant
Okay. Thank you very much. Thank you.
Prakash Agarwal
Thank you.
Operator
Thank you. Next question is from the line of Mr Divesh Kasliwal from Antique Stock Broking. Please go-ahead. Mr MR. Devish, your line is unmuted. Please go-ahead with your question.
Devesh Kasliwal
Yeah. Hello.
Operator
Yes, sir. Please proceed.
Devesh Kasliwal
Yeah. So sir, in our products business, the domestic products business, which contributes around 20-odd percent to the consol revenues. So we have seen quite a good traction and you have mentioned in the PPT that the pipeline is also healthy in this segment. So I wanted to know your approach on this. One, with regards to private and public companies that you’re dealing with. So as in are you trying to shift a little bit of a focus from the public sector to the private sector?
And second, is there overall capex, which sectors are seeing traction as in? So if you look at energy, oil and gas pumps are like given the entire Russia-Ukraine problem. So we are trying to — like downstream pumps are a requirement currently. So are you looking at acquisitions in this space or like product pipeline vertically integrating and adding more products or is it more towards focus on the project side in terms of cash deployment going-forward?
Prakash Agarwal
Number-one, our product cycle is linked between international, most of our international business presently, which is to the tune of in nine months approximately 453 and 215 is the domestic revenues. So about INR660 crores is a product and we’ve already got a good balance there between domestic and international, which allows us to diversify. Further, in Indian market itself, we are quite diversified, be it in power sector, be it in oil and gas, be it in water, drainage, irrigation. So well insulated and we are not concerned by any sector and we see consistent growth going-forward. And as the product lines are coming, for example, the Navy product-line was added, sewage drainage product lines have been added. So those product lines are giving us growth. But yes, I would highlight that one of the sector which is improving now is the thermal power sector. So we are seeing good demand for pumps in the thermal power sector, which is new.
Devesh Kasliwal
And more towards engineered size or just like generic product.
Prakash Agarwal
Yeah, engineered, it’s more engineered pumps, large pumps. So we are seeing that sector getting traction. And internationally, we are looking at acquisitions to keep building on competencies in geographies. More important geographies.
Devesh Kasliwal
We are wanting to add more geographies. Okay. So domestically, we are trying to add more molecular — more products in the pipeline and internationally more geographies than us.
Prakash Agarwal
Domestically, we are all well geared up and we are seeing the growth in inquiries itself. So the products are already there, both internationally and India. Now it’s more geography where we can grow internationally. And in India, it is the growth of India will take care of it.
Devesh Kasliwal
Okay. Thank you so much. And one last question. Cash on the books currently after this 3rd-quarter and any — like are we deploying any cash going ahead in the next two, 3/4 or are we going to wait a little bit till because receivables are also going to come. This is a 1/4 blip that you’re talking about, so we’ll be sitting on a good amount of cash. So that is why I want to do that.
Prakash Agarwal
So we’re looking at opportunities both at in India, we are not — we don’t find much, but in internationally, because these transactions have to be completed and then more transactions we are looking at to deploy the cash there. So if you come across good opportunities yet, we are very conservative there in that respect.
Devesh Kasliwal
Okay. Thank you so much, sir. Thank you so much, sir.
Prakash Agarwal
Thank you.
Operator
Thank you. Next question is from the line of Avin Gupta, an Individual Investor. Please go-ahead.
Unidentified Participant
Hello. Am I audible?
Operator
Yes, please go-ahead.
Unidentified Participant
Yes, hi. Thanks for the opportunity. I just had one question. Are we any — are we eyeing any project in interlinking announced in the budget.
Prakash Agarwal
Yes, we are one of the capable parties to supply these large pumps. We have supplied them in Telangana, in the Kalesharan project. We have been successfully commissioned, which places us well-placed for projects which are coming in river linking in various states.
Unidentified Participant
Okay thank you.
Operator
Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participant in the question queue, please restrict your questions to one per participant. If you have any follow-up questions, please rejoin the queue. Next question is from the line of Abhishek, who is a retail investor. Please go-ahead.
Unidentified Participant
Hello. Yes, please go-ahead. Yes. Good evening, sir. My question is that in this quarter, we have seen a substantial rise in material cost. So can you just highlight any key supply-side concerns?
Prakash Agarwal
I don’t see any such a increase in material cost. Actually, material costs have gone down, steel prices have gone down. So we are getting benefits in that respect.
Unidentified Participant
Okay. Okay. And sir, in case of freewer linking projects, can you just give and brief idea about the particular states where you were looking for project opportunities like Maharashtra or Andhra Pradesh Telangana.
Prakash Agarwal
Rajasthan, we are exploring some projects, some more projects in Telangana and Andhra. So MP, I understand they are also coming up with these large projects. So we expect Madhya Pradesh, Rajasthan, Telangana and Andhra to have these projects.
Unidentified Participant
Thank you, sir.
Prakash Agarwal
Thank you.
Operator
Thank you. Next question is from the line of Deepak Perswani from Swan Investments. Please proceed.
Deepak Purswani
Yeah. Hi, sir. Sir, on the international turnkey project, you — as you mentioned that strategically now we are taking place in all three regions. So just wanted to get a sense, I mean, over the next three to five years, what is the kind of scale which we are looking out to achieve in these kind of business and how should we see these business growing over a period of time? As you mentioned, there are a lot of opportunities in these regions and even growing faster than the Indian market.
Prakash Agarwal
So we will elaborate on this in the — I think by the first-half of next year because what the PCI transaction is — will be completed by the first-half. So first-quarter. So we will be sharing more-and-more details and then we will go into — so let us complete this transaction first.
Deepak Purswani
Sure, sure. And sir, on the rever linking front, I mean, if you can also give the broader sense of what is the quantum of the size which are coming up for the bidding over the next six to 12 month kind of thing and what are the size of opportunity we are looking at out.
Prakash Agarwal
I think it’s not such a big area. It is part of the irrigation projects. So you will have these, but these are very large projects which take longer gestation period. So it is — the good thing is that these projects were long pending and they are now taking shape, but it’s not that they will come in one-shot. There are lots of clearances, lot of environmental clearances, civil works, etc. The good thing is the government is proceeding on these with a focused approach.
Deepak Purswani
Okay. Finally on the product division, I mean one, on the domestic side, it is growing at a better pace and in the international market or it is at a steady pace and just wanted to get the sense on the margin profile of these product business if you can share your thoughts because there is a lot of volatility in the margin if I were to look on the broader business, I mean this time again this has come down to the 15%. How should we look into this business over a period of time? Our margins are a margin perspective.
Prakash Agarwal
So we are having roughly — if you take nine months last year, we had 17% consolidated margins. This year, we have 17% consolidated margins. So I think we have lots of different parts of our business. So to look in — you know, we should look at the overall figure where our target has always been between 15% and 20%.
Deepak Purswani
Okay. Thank you. Thanks a lot and wish you all the best. Best. Thank you.
Operator
Thank you. Next question is from the line of Ravi Anand, an Individual investor. Please proceed.
Unidentified Participant
Sir, two follow-on questions. So one is with the liquefied natural gas infra is being expanded by the government going to double or triple in shortly. So are we in this — are we seeing any traction, are we in this sector? LNG?
Prakash Agarwal
So LNG transportation, which I think will be done in India, that is not a sector we are in. In Australia, we find LNG objects where LNG generation is done. Generation and compression is done. So those terminals have our pumps.
Unidentified Participant
Right, sir. Second question is, sir, this now we are expanding in newer geographies and also in Australia and Africa. So do we have competition from Chinese companies or do we have the barriers to there?
Prakash Agarwal
In our business, we don’t see much Chinese presence.
Unidentified Participant
Okay, sir. Thank you, sir.
Operator
Thank you. Next question is from the line of Saket Kapoor from Kapoor; Company. Please go-ahead.
Saket Kapoor
Yeah., sir. Sir, when we look at the order book position for the product business, domestic is closer to INR400 and the international is closer to INR550 crores. So what should be the execution rate going ahead for the product business, sir for both domestic and international pace.
Prakash Agarwal
So I think the order book is not so critical in the product division, both international and domestic because they are short-duration, they are — you can suddenly get a project and execute in next four months, five months. So it’s indicative that the businesses are strong and in-line the order books, but they are not — it’s very difficult to say — but generally, we execute orders anywhere between three months-to a year.
Saket Kapoor
Okay. So this product also will have a part of a portion of order book, which is executable over a period of one year.
Prakash Agarwal
So some large engineered pumps are over a year, most of it is shorter, so spares are shorter-duration like that. It’s — I don’t think you should read into this about time-frames and execution. Projects is more relevant.
Saket Kapoor
Earlier, our project, but I didn’t give three to six months may it used to deplete. So whatever closing order book which used to present in the presentation that used to deplete in the three to six months execution period. So there is a difference now taking into account.
Prakash Agarwal
I think understanding, it has always been the same. There will be different products with different cycles, but the product cycles are shorter, what I want to say. That means the project cycle is more relevant because those are you know, so if you don’t have the order, it is very difficult to do. But the products are fluctuating with the previous period, but shorter cycles.
Saket Kapoor
The cash balance you did not allude to what is the cash on books on a consolidated level?
Prakash Agarwal
On a consolidated level, the cash is approximately 550 crores.
Saket Kapoor
55 crores and wherein receivables are INR400 crores. From the project business, domestic.
Prakash Agarwal
You said consolidated basis, our cash is INR5. A lot of moving parts, so don’t tell you yes, I mean projects in India, yes, we have it. But there are different figures.
Saket Kapoor
Okay. And sir, lastly, we have this last year-one is to one mix in terms of the revenue profile between the pumps and the pumps and the project business. And taking into account wherein you also said that we will be closer to last year top-line. So this year also somewhat we will be closer to this mix or this mix will be more inclined towards the pump the product side rather than the project side for the year as a whole.
Prakash Agarwal
You know more on the product a bit.
Saket Kapoor
Okay. Okay, sir. Thank you, sir, for all the reply and we hope that our issues are being addressed at the earliest and investors have a better sense of understanding when we meet the next time in the conference call and we hope for better more value-added in the presentation sir going ahead as being alluded by you. And all the best to the team, sir,.
Operator
Thank you. Thank you. Ladies and gentlemen, that was the last question for the day. I would now like to hand the conference over to Mr Devesh Kasliwal from Antique Stock Broking for the closing comments.
Devesh Kasliwal
Thank you so much, sir and team for allowing us to host the conference call. I would like to wish you very good luck for the 4th-quarter and the financial year ’26 coming ahead. If you would like to give any closing remarks or should I just — should we just end the call.
Prakash Agarwal
Thank you all for participating in this earnings con-call. I hope you were able to answer your questions satisfactorily and at the same time, offer insights into our business. If you have any further questions or would like to know more about the company, please reach-out to our Investor Relations managers at Valordium Advisors. Thank you. Good evening.
Operator
Thank you. Thank you. On behalf of Stock Brokings, that concludes this conference. Thank you all for joining us and you may now disconnect your lines.