Q1 2027 Sanghvi Movers Ltd Earnings Call

August 3, 2026

Speaker #1: Ladies and gentlemen, please stay connected. The call will begin shortly. Thank you. Ladies and gentlemen, good afternoon and a warm welcome, everyone, to the Q1 FY27 earnings call of Sanghvi Movers Limited.

Operator: Ladies and gentlemen, please stay connected. The call will begin shortly. Thank you. Ladies and gentlemen, good afternoon and a warm welcome everyone to Q1 FY27 Earnings Call of Sanghvi Movers Limited. Please note, the investor presentation and the financial results are available on the company website and the stock exchanges. Also, anything said on this call which reflects our outlook for the future, or which could be constructed as a forward-looking statement, must be reviewed in conjunction with the risk that the company faces. The conference call is being recorded, and the transcript, along with the audio of the same, will be made available on the website of the company as well on the exchanges.

Operator: Ladies and gentlemen, good afternoon and a warm welcome everyone to Q1 FY 2027 Earnings Call of Sanghvi Movers Limited. Please note, the investor presentation and the financial results are available on the company website and the stock exchanges.

Speaker #1: Please note, the investor presentation and the financial results are available on the company website and the stock exchanges. Also, anything said on this call which reflects our outlook for the future, or which could be construed as a forward-looking statement.

Operator: Also, anything said on this call which reflects our outlook for the future, or which could be constructed as a forward-looking statement, must be reviewed in conjunction with the risk that the company faces. The conference call is being recorded, and the transcript, along with the audio of the same, will be made available on the website of the company as well on the exchanges.

Speaker #1: This must be reviewed in conjunction with the risks that the company faces. The conference call is being recorded, and the transcript along with the audio will be made available on the website of the company as well as on the exchanges.

Speaker #1: Please also note that the audio of the conference call is the copyright material of Sanghvi Movers Limited and cannot be copied, rebroadcast, or attributed in the press or media without specific written consent of the company.

Operator: Please also note that the audio of the conference call is the copyright material of Sanghvi Movers Limited and cannot be copied, rebroadcasted, or attributed in the press or media without specific and written consent of the company. From the management side, we have with us Mr. Rishi Sanghvi, Managing Director, Mr. Gaurang Desai, Chief Executive Officer, and Mr. Pradeep Mehta, Chief Financial Officer. I request Mr. Pradeep Mehta, the Chief Financial Officer of Sanghvi Movers Limited, to provide you with the updates for the quarter ended on 30 June 2026. Thank you, and over to you, sir.

Speaker #1: From the management side, we have with us Mr. Rishi Sanghvi, Managing Director; Mr. Gaurang Desai, Chief Executive Officer; and Mr. Pradeep Mehta, Chief Financial Officer.

Operator: From the management side, we have with us Mr. Rishi Sanghvi, Managing Director, Mr. Gaurang Desai, Chief Executive Officer, and Mr. Pradeep Mehta, Chief Financial Officer. I request Mr. Pradeep Mehta, the Chief Financial Officer of Sanghvi Movers Limited, to provide you with the updates for the quarter ended on 30 June 2026. Thank you, and over to you, sir.

Speaker #1: Now, I request Mr. Pradeep Mehta, the Chief Financial Officer of Sanghvi Movers Limited, to provide you with the updates for the quarter ended on June 30, 2026.

Speaker #1: Thank you. And over to you, sir.

Speaker #2: Thank you, Huda, and good afternoon. Thank you all for joining us. I'll take you through the quarter in four parts: one, the headline numbers; two, the sequential compositions.

Pradeep Mehta: Thank you, Huda, and good afternoon. Thank you all for joining us. I will take you through quarter in four parts. One, the headline number. Two, the sequential comparison. Three, the core crane rental margin, which I expect is on everyone's mind, and which I will explain in this discussion. The last is balance sheet and CapEx. On headline numbers on constant basis, revenue from operations for Q1 FY27 was INR 380 crores against INR 273 crores in Q1 FY26. That is growth of 39%. Total income was INR 393 crores against INR 281 crores, growth of 40%. EBITDA was INR 139 crores against INR 107 crores, growth of 30% as a margin of 35%. Profit after tax was INR 65 crores against INR 50 crores, also 30% growth. The cash profit was INR 104 crores against INR 82 crores. I want to address the sequential picture directly because year-on-year numbers tell only half the story.

Speaker #2: Third, the core credential margin, which I expect is on everyone's mind—and which I'll explain in this discussion. And then lastly, the balance sheet and capex.

Speaker #2: On the headline numbers, on a conservative basis, revenue from operations for Q1 FY27 was ₹380 crore, against ₹273 crore in Q1 FY26. That is a growth of 39%.

Speaker #2: And total income was ₹393 crore, against ₹281 crore, a growth of 40%. EBITDA was ₹139 crore, against ₹107 crore, a growth of 30% at a margin of 35%.

Speaker #2: Profit after tax was ₹65 crore, against ₹50 crore. That's also a 30% growth. The cap profit was ₹104 crore, against ₹82 crore. So I want to address the sequential picture directly because year-on-year numbers tell only half the story.

Speaker #2: Compared to Q4 FY26, the revenue rose from ₹350 crore to ₹380 crore, which is an increase of ₹29 crore. However, EBITDA was ₹139 crore as against ₹143 crore.

Pradeep Mehta: Against Q4 FY26, the revenue growth from INR 350 crores to INR 380 crores, that is INR 29 crores up, EBITDA was INR 139 crores against INR 143 crores, margin was 35% against 40%, profit after tax was INR 65 crores against INR 69 crores. Overall, we grew the top line and gave back margin, and that is a real outcome. I will now explain exactly what caused it. The core crane rental EBITDA margin moved from 53% in FY26 to 47% in Q1 FY27. That is a 6% point drop. There are four components for the same. Two points related to a higher expected credit loss provision driven by aging of receivables. That is around INR 6.2 crores. We expect it to rationalize over the course of this year as collection improves.

Speaker #2: And margin was 35% against 40%. And profit after tax was ₹65 crore against ₹69 crore. So overall, we grew the top line and gave back margin.

Speaker #2: And that is the real outcome. I will now explain exactly what caused it. The core credential EBITDA margin moved from 53% in FY26 to 47% in Q1 FY27.

Speaker #2: That is a 6 percentage point drop. So, there are four components for the same—two points related to higher expected trade loss provisions, driven by aging of receivables.

Speaker #2: That is around ₹6.2 crore. We expect it to rationalize over the course of this year as collections improve. One point is regarding mark-to-market reinstatement of the foreign currency loan.

Pradeep Mehta: One point is regarding mark-to-market reinstatement of foreign currency loans, and that is INR 1.4 crores, and it is a non-cash accounting entry. One point is one-time incentive paid to frontline employees and to senior management team because company has rewarded for first time surpassing INR 1,000 crores top line and extraordinary performance by the employee in FY26. The remaining two points are change in revenue mix. During this quarter, we sold incremental demand through hire ancillary equipment and through gross rental of cranes, which is rather than doing fresh capital expenditures. I want to be precise about the last item what I explained because it is one that is structural. These are deliberate capital allocation choice, not a margin leakage. Even higher equipment like gross rentals carry lower percentage margin, but they consume no capital. They are therefore, this is accretive to ROCE and cash generation.

Speaker #2: And that is ₹1.4 crore. And it is a non-cash accounting entry. One point is a one-time incentive paid to frontline employees and to senior management teams because the company has rewarded them for first-time surpassing ₹1,000 crore top-line and extraordinary performance by the employees in FY26.

Speaker #2: The remaining two points are: change in revenue mix during the quarter, which served incremental demand through higher ancillary equipment and through cross-rental of cranes.

Speaker #2: This is rather than undertaking fresh capital expenditures. I want to be precise about the last item I explained, because it is one that is structural.

Speaker #2: These are deliberate capital allocation choices, not margin leakage. This is higher equipment, and cross-rental carries lower percentage margin, but they consume no capital.

Speaker #2: They are; therefore, this is accretive to ROCE and cash generation. Because while these are being optically dilutive to reported margin, however, it is without investment.

Pradeep Mehta: While these are being optically dilutive to reported margin, however, it is without investment. We prefer to earn lower margin instead of investing more capital on this front. Putting together, excluding these ForEx and incentive items, the underlying core margin for the quarter was approximately 49%, and if the credit provision rationalized as we are expecting during the course of the year, the return towards 51%. Taking all together, we regard the core margin as structurally intact and our guidance for FY27 will be still between INR 525 crores to INR 575 crores, which is unchanged. Since I have raised the credit provision, let me also give you the working capital position. Group days of outstanding is today 116 days. This includes crane rental 134 days, renewable EPC 98 days, and GCC business 201 days.

Speaker #2: We preferred to earn a lower margin instead of investing more capital on this one. So, putting it together—excluding this forex and incentive item—the underlying core margin for the quarter was approximately 49%.

Speaker #2: And if the trade provision is rationalized as we are expecting during the course of the year, the return will be towards 51%. Taking all together, with regard to this, core margins are structurally intact and our guidance for FY27 is still between ₹525 crore to ₹575 crore, which is unchanged.

Speaker #2: Since I have raised the trade provisions, let me also give you the working capital position. Group-based trade outstanding included 116 days. This includes Credential at 124 days, Renewal EMC at 98 days, and GCC business at 201 days.

Speaker #2: So, this year's collection is very focused, and in GCC, collection has improved in the month of July after the end of the quarter on June 26.

Pradeep Mehta: This year collection is very focused, and the GCC collection has improved in the month of July after the end of Q2 2026. On business mix, the crane rental contributes approximately 60% of revenue from operations and 37% renewable EPC, and the last 3% from project GCC. Renewable business is ahead of our full year mix in Q1 on execution pending, and for the full year, we continue to expect roughly two-third revenue from crane rental and one-third from renewable EPC business. As the revenue will scale up in the H2 for the year, we are following through the CapEx, which are going to happen in the remaining part of the year. On the operational side, our customer fleet stood at INR 492 crores and gross block is approximately INR 3,300 crores.

Speaker #2: On business mix, the Credential contributes approximately 60% of revenue from operations, 37% from renewal EMC, and the balance 3% from project EPC. Renewable business is running ahead of our full year mix in Q1.

Speaker #2: On execution credit, and for the full year, we continue to expect roughly two-thirds revenue from credential and one-third from renewal EMC business. As the revenue will scale up in the second half of the year, we are following through with the capex that is going to happen in the remaining part of the year.

Speaker #2: On the operational side, or considering fleets excluded, ₹492 crore, and gross loss is approximately ₹3,300 crore. The India and Botswana business reported utilization of around 86% at a yield of 2.29%.

Pradeep Mehta: The India and Botswana business reported utilization of around 86% at a yield of 2.29%, and the GCC business utilization of 86% at a yield of 4.10%. That yield differential, that is between 4.1% and 2.29%, is the core of leading this investment. GCC total income was INR 19 crores at an EBITDA margin of 23%, and the Saudi operation has now delivered cumulative EBITDA positive performance. On balance sheet, gross debt to equity stood at 0.54 times against our guided FY20 0.72 times, and group ROCE was around 15% as on March 2026. On CapEx FY27, a pool of INR 652 crores as approved by the board of directors. INR 92 crores already capitalized in Q1 and balance deployment is in H2. We are continuously tracking OEM delivery and project commissioning dates. This INR 560 crores will be deployed in the remaining part of the year.

Speaker #2: And the GCC business utilization process is 86% at a yield of 4.10%. And that yield differential, that is, between 4.10% and 2.29%, is the core of Middle East investment.

Speaker #2: GCC total income was ₹19 crore at an EBITDA margin of 23%. The Saudi operation has now delivered cumulative EBITDA-positive performance. On the balance sheet, gross debt to equity (excluding cash) was 0.54 times against our guided FY20 level of 0.72 times, and group ROCE was around 16% as on March 26.

Speaker #2: On capex for FY27, out of ₹652 crore as quoted by the Board of Directors, ₹92 crore has already been capitalized in Q1 and the balance will be deployed in the second half. We are continuously tracking OEM delivery and project submission dates, and this ₹560 crore will be deployed in the remaining part of the year. We are expecting approximately a 15% increase in revenue within FY27 because of this investment.

Pradeep Mehta: We are expecting approximately 15% increase in revenue within FY27 because of this investment. Subsequently, all the pool are revenue generating. With that, I'll hand over to Mr. Gaurang Desai, our Chief Executive Officer.

Speaker #2: And substantially all the pool are revenue generating. With that, I will hand over to Mr. Goran Desai, our Chief Executive Officer.

Speaker #3: Thank you, Pradeep, and very good afternoon to everybody. It's always a pleasure connecting with all of you. So, Quarter 1 of this financial year has been a good start to the year.

Gaurang Desai: Thank you, Pradeep. A very good afternoon to everybody. It's always a pleasure in connecting with all of you. Q1 of this financial year has been a good start of the year. Total income of INR 393 crores, growth of 40%, and order book of almost INR 250 crores. Pradeep has been candid about where margin moved and why. Let me begin by sharing our perspective on business environment and the opportunities ahead. India continues to be the fastest growing major economy, closing the last financial year with 7.7% of GDP growth, while Q1 FY27 is tracking at around 6.6%. Most importantly, the quality of the growth remains investment-led. Government CapEx is a record INR 12.2 lakh crores. Manufacturing and construction continue to expand. Financing costs have eased 100 basis points, reduction in the repo rate, and inflation remains well under control.

Speaker #3: Total income of ₹393 crore, growth of 40%, and order book of almost ₹1,250 crore. So, Pradeep has been candid about where margin moved and why.

Speaker #3: So let me begin by sharing our perspective on the business environment and the opportunities ahead. India continues to be the fastest-growing major economy, closing the last financial year with 7.7% GDP growth.

Speaker #3: While Q1 FY27 is tracking at around 6.6, most importantly, the quality of the growth remains investment-led. Government capital expenditure is at a record ₹12.2 lakh crore.

Speaker #3: Manufacturing and construction continue to expand. Financing costs have eased—100 basis point reduction in the repo rate—and inflation remains well under control. So this environment is particularly encouraging for Sanghvi Movers, because this investment directly translates into demand across the sectors we serve.

Gaurang Desai: This environment is particularly encouraging for Sanghvi Movers because this investment directly transferred into demand across the sectors we serve, including refining, steel, cement, power, renewable, infrastructure, and heavy engineering. Against this favorable backdrop, we entered FY27 with a strong position of strength. We have a secured order book, as I mentioned, of almost INR 250 crores. This is fully executable within this financial year, providing strong revenue visibility. In addition, we have a healthy project pipeline or inquiry pipeline of almost INR 5,600 crores across multiple sectors, giving us the confidence in sustained business momentum. Combined with our diversified sector presence, this provides greater earning visibility while reducing dependence on any single industry. Let me talk about the industrial sector. From the demand side, India is adding capacity across every sector we serve. Wind added a record of 86 GW last year with almost 29 GW under construction.

Speaker #3: Including refining, steel, cement, power, renewable infrastructure, and heavy engineering. Against this favorable backdrop, we entered FY27 with a stronger position. We have a secured order book, as I mentioned, of almost ₹1,250 crore.

Speaker #3: This is fully executable within this financial year, providing strong revenue visibility. In addition, we have a healthy project or inquiry pipeline of almost ₹5,600 crore.

Speaker #3: Across multiple sectors, it is the confidence in sustained business momentum. Combined with our diversified sector presence, this provides greater earnings visibility while reducing dependence on any single industry.

Speaker #3: So let me talk about the industrial sector. On the demand side, India is adding capacity across every sector we serve. Wind added a record of 6 gigawatts last year, with almost 29 gigawatts under construction.

Speaker #3: Thermal has given 62 gigawatts underbuilt or in award. Steel is targeting 300 million tons by 2030. And cement is adding over 160 million tons.

Gaurang Desai: Thermal has given 62 GW under bid or an award. Steel is targeting 300 million tonnes by 2030 and cement is adding over 160 million tonnes. Nuclear, I'm sure all of you will be aware, has opened to privatization under the SHANTI Act. Each one of these require a heavy lift. The industrial sector continues to offer significant opportunities for Sanghvi Movers. We are witnessing a broad-based investment cycle across all the sectors. Over the next few years, these industries expected to add significant capacity, creating long-term opportunities for heavy lift and specialized crane service. The energy sector remains another important growth story for the company. India's rising power demand and ongoing energy transition are driving investment across wind, thermal, and nuclear power. Sangreen Future Renewables continues to strengthen our position across the wind value chain.

Speaker #3: Nuclear, I'm sure all of you will be aware, has opened to privatization under the Shanti Act. Each one of these requires a heavy lift.

Speaker #3: The industrial sector continues to offer significant opportunities for Sanghvi Movers. We are witnessing a broad-based investment cycle across all sectors. Over the next few years, this industry is expected to have significant capacity, creating long-term opportunities for heavy lift and specialized crane services.

Speaker #3: The energy sector remains another important growth story for the company. India's rising power demand and ongoing energy transition are driving investment across wind, thermal, and nuclear power.

Speaker #3: Sanghvi's future renewable continues to strengthen our position across the wind value chain. It's asset-light, high return on capital, and a complement to their core business.

Gaurang Desai: It's an asset-light, high return on capital, and a complement to the core business. It generates incremental EBITDA without consuming capital, and it secures demand for the crane fleet through integrated execution. We also closed our quarter with an order book of almost INR 680 crores. Our Middle East business, as Pradeep mentioned, achieved cumulative EBITDA positive performance during the quarter. This is an important milestone in the first year of operation itself. We have secured new orders in Qatar, and we have completed Botswana commissioning on schedule, repatriating almost $1.1 million to India. In terms of, let's say, pipeline for the Middle East, our visible, our 0 to 24-month pipeline is almost around $38 million. Let me talk about strengthening the organization. Elevate 2030 is progressing in line with our commitments.

Speaker #3: It generates incremental EBITDA without consuming capital, and it secures demand for the crane fleet through integrated execution. It also closed off the quarter with an order book of almost ₹680 crore.

Speaker #3: Our Middle East business, you know, as Pradeep mentioned, achieved cumulative EBITDA positive performance during the quarter. This is an important milestone in the first year of operation itself.

Speaker #3: We have secured new orders in Qatar, and we have completed the Botswana commissioning on schedule, repatriating almost $1.1 million to India.

Speaker #3: So, in terms of, let's say, pipeline for the Middle East, you know, our visible 0 to 24 pipeline is almost around $38 million.

Speaker #3: Let me talk about strengthening the organization. So anyway, 2030 is progressing in line with our commitments. We have moved from a single-country crane rental business to a group operating across India, Saudi Arabia, Botswana, and Qatar.

Gaurang Desai: We have moved from a single country crane rental business to a group operating across India, Saudi Arabia, Botswana, and Qatar with a professional leadership team, a broader product portfolio, and high-return business models. Beyond these market opportunities, we are equally focusing on strengthening our organization for the future. Enhancing customer centricity through digital initiatives that improves our responsiveness, transparency, and service delivery. Pursuing international expansion by exploring attractive growth opportunities in new markets, enabling us to diversify our revenue base and strengthen our global presence. Advancing our digital transformation, we are scheduled to go live for our new HRMS and CRM software. In terms of outlook, our guideline stands as published. Consolidated for FY27, consolidated revenue of roughly INR 1,400 to 1,500 crores, EBITDA of INR 525 to 575.

Speaker #3: With a professional leadership team, a broader product portfolio, and high-return business models. Beyond these market opportunities, we are equally focusing on strengthening our organization for the future.

Speaker #3: We are enhancing customer centricity through digital initiatives to improve our responsiveness, transparency, and service delivery. We are also pursuing international expansion by exploring attractive growth opportunities in new markets, enabling us to diversify our revenue base and strengthen our global presence.

Speaker #3: Advancing our digital transformation, we are scheduled to go live with our new HRMS and CRM software. In terms of outlook, our guideline stands as published.

Speaker #3: So, consolidated for FY27: consolidated revenue of roughly ₹1,400 to ₹1,500 crore, EBITDA of ₹525 to ₹575 crore, and a blended return on capital of 16.25% to 16.5%.

Rishi Sanghvi: A blended return on capital of 16.25% to 16.5%. To summarize, the core is healthy, renewables are scaling, international is gaining traction, and the order book gives us visibility for the year. We remain focused on disciplined capital allocation, on safety, and on sustainable value creation for our stakeholders. Thank you so much, and we can now open the floor for questions.

Gaurang Desai: A blended return on capital of 16.25% to 16.5%. To summarize, the core is healthy, renewables are scaling, international is gaining traction, and the order book gives us visibility for the year. We remain focused on disciplined capital allocation, on safety, and on sustainable value creation for our stakeholders. Thank you so much, and we can now open the floor for questions.

Speaker #3: To summarize, the core is healthy, renewables are scaling, international is gaining traction, and the order book gives us visibility for the year. We remain focused on disciplined capital allocation, on safety, and on sustainable value creation for our stakeholders.

Speaker #3: Thank you so much, and we can now open the floor for questions.

Speaker #1: 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-tone telephone.

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-tone 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 Vivek Rakholia from Fincom Family Office. Please proceed.

Speaker #1: 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.

Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Vivek Rakholia from Fincom Family Office.

Speaker #1: Please proceed.

Speaker #3: Very good afternoon. Am I audible?

Vivek Rakholia: Very good afternoon. Am I audible?

Vivek Rakholiya: Very good afternoon. Am I audible?

Speaker #1: Yes.

Operator: Yes.

Vivek Rakholia: Thanks a lot for the opportunity. My first question is that FY27 CapEx is roughly INR 190 crores in India versus INR 200 crores in KSA. If you had one incremental crane and you could place it on the either side, where does it go today and what is the deciding factor for it? Is it yield, utilization, tenure, payback, or anything else? That's my first question.

Vivek Rakholiya: Thanks a lot for the opportunity. My first question is that FY27 CapEx is roughly INR 190 crores in India versus INR 200 crores in KSA. If you had one incremental crane and you could place it on the either side, where does it go today and what is the deciding factor for it? Is it yield, utilization, tenure, payback, or anything else? That's my first question.

Speaker #3: Thanks. Thanks a lot for the opportunity. My first question is that FY27 capex is roughly ₹190 crore in India versus ₹200 crore in KSA.

Speaker #3: If you had one incremental crane and you could place it on either side, where does it go today, and what is the deciding factor for it?

Speaker #3: Is it yield, utilization, tenure, payback, or something else? That's my first question.

Speaker #4: Good afternoon. My name is Rishi Sanghvi, and thanks for that question. So, you know, as we open international markets throughout the world, our role transforms from being a crane rental company to a capital allocator.

Rishi Sanghvi: Good afternoon. My name is Rishi Sanghvi. Thanks for that question. As we open international markets throughout the world, our role transforms from being a crane rental company to a capital allocator. There are several factors that determine whether we will invest a dollar of CapEx in a particular market. Primarily, what is the inquiry pipeline? What is the order visibility? What do we need to do? What is the order duration? What is the look-ahead visibility for a crane? What do we need to do in order to secure our market share in that particular market? What is the internal hurdle rate for making an investment in a particular crane? There are several factors that get considered prior to deployment of capital.

Speaker #4: There are several factors that determine whether we will invest a dollar of capex in a particular market. Primarily, what is the inquiry pipeline, what is the order visibility, what do we need to do, what is the order duration, what is the look-ahead visibility for a crane, what do we need to do in order to secure our market share in that particular market, what is the internal hurdle rate for making an investment in a particular crane—so there are several factors that get considered prior to deployment of capital.

Speaker #4: What we are focused on is being a judicious capital allocator, ensuring that the group RoCE is maintained and that all investments meet our internal IRR criteria before we deploy capital.

Rishi Sanghvi: What we are focused on is being a judicious capital allocator, ensuring that the group ROCE is maintained, and that all investments meet our internal IRR criteria before we deploy capital.

Speaker #3: Thank you for that answer. So, you know, continuing on the same lines, is this shift towards KSA a positive view on Saudi, or is it partly a view that India's crane rental yields are structurally capped by competition?

Vivek Rakholia: Thank you for that answer, sir. Continuing on the same lines, is the shift towards KSA a positive view on Saudi, or is it partly a view that India's crane rental yields are structurally capped by competition? How do you see competition in India shaping up, say, over the next one to two years, and overall demand and supply scenario for the crane rental equipment industry?

Vivek Rakholiya: Thank you for that answer, sir. Continuing on the same lines, is the shift towards KSA a positive view on Saudi, or is it partly a view that India's crane rental yields are structurally capped by competition? How do you see competition in India shaping up, say, over the next one to two years, and overall demand and supply scenario for the crane rental equipment industry?

Speaker #3: You know, how do you see competition in India shaping up, say, over the next one to two years, and the overall demand and supply scenario for the crane rental equipment industry?

Speaker #4: You have asked four questions in one, so maybe I'll try and answer one out of those four questions. So, Saudi is not a response to India, and India is not a response to Saudi Arabia.

Rishi Sanghvi: You've asked 4 questions in 1. Maybe I'll try and answer 1 out of those 4 questions. Saudi is not a response to India, and India is not a response to Saudi Arabia. What is happening in Saudi Arabia and our investment thesis to go to Saudi Arabia has always been that there is a tremendous amount of opportunity and demand for cranes in Saudi Arabia. As we are already witnessing at yields and utilization levels, often utilization levels at par with India, but yields that are much higher than India. Now in Saudi Arabia, because of the Vision 2030, the FIFA World Cup, the World Expo and a number of other projects.

Speaker #4: What is happening in Saudi Arabia, and our investment thesis to go to Saudi Arabia has always been that there is a tremendous amount of opportunity and demand for cranes in Saudi Arabia.

Speaker #4: And as we are already witnessing, at yields and utilization levels—often utilization levels at par with India, but yields that are much higher than India.

Speaker #4: Now, in Saudi Arabia, because of the vision 2030, the FIFA World Cup, the Expo World Expo Games, and the Commonwealth Games, World Expo Games, not Commonwealth, the Games, the World Expo, and a number of other projects, the entire economy is modernizing and there is a tremendous amount of activity that is taking place in the Saudi Arabia market.

Rishi Sanghvi: The entire economy is modernizing and there is a tremendous amount of activity that is taking place in the Saudi Arabia market. This is not to mention what Saudi Aramco will do across the next 5 years, which is spend almost half a trillion dollars. Saudi Arabia today is the construction backyard of the world, and we see tremendous amount of activity happening across all sectors. Our investment thesis to go to Saudi Arabia was correct because as Pradeep has announced, we are already cumulatively EBITDA positive in the country and we continue to deploy capital in the region. If you look at it from an India perspective, yields in India have improved. Over the last quarter, we have been able to shift yields. Yields are not being capped by competition. There is a tremendous demand for cranes that still remains in the country.

Speaker #4: This is not to mention what Saudi Aramco will do across the next five years, which is spend almost half a trillion dollars. So, Saudi Arabia today is the construction backyard of the world, and we see a tremendous amount of activity happening across all sectors.

Speaker #4: Our investment thesis to go to Saudi Arabia was correct because, as Pradeep has announced, we are already cumulatively EBITDA positive in the country, and we continue to deploy capital in the region.

Speaker #4: If you look at it from an India perspective, yields in India have improved over the last quarter. We have been able to shift yields.

Speaker #4: So, yields are not being capped by competition, and there is tremendous demand for cranes that still remains in the country. So, we are positive on both markets.

Rishi Sanghvi: We are positive on both markets. For us, we are building 2 markets where we are pivoting into becoming capital deployers, allocators, and where we will chase the right return for the company with the right fleet, all keeping in mind that we have to deliver ROCE for the company and for our stakeholders.

Speaker #4: For us, we are building two markets where we are pivoting into becoming capital deployers and allocators, and where we will chase the right return for the company with the right fleet—all keeping in mind that we have to deliver RoCE for the company and for our stakeholders.

Speaker #3: Thanks a lot for that elaborate answer. So just one last short question: Are you seeing any changes in terms of client behavior on contract tenure or, say, rate resets in India?

Vivek Rakholia: Thanks a lot for that elaborate answer, sir. Just 1 last short question would be that, are you seeing any changes in terms of client behavior on contract tenure or a rate negotiation as and when more fleet becomes available?

Vivek Rakholiya: Thanks a lot for that elaborate answer, sir. Just 1 last short question would be that, are you seeing any changes in terms of client behavior on contract tenure or a rate negotiation as and when more fleet becomes available?

Speaker #3: For example, is it a Tier 1 client pushing for a shorter tenure, or is it a rate negotiation when more fleet becomes available?

Speaker #4: Yeah, hi Vivek. This is Goran. So, we don't see any material shift in customers' perspective as of now.

Gaurang Desai: Hi, Vik. This is Gaurang. We don't see any material shift in customer perspective as of now.

Gaurang Desai: Hi, Vivek. This is Gaurang. We don't see any material shift in customer perspective as of now.

Speaker #3: Thank you very much, and all the very best. Thank you.

Vivek Rakholia: Thank you very much. All the very best. Thank you.

Vivek Rakholiya: Thank you very much. All the very best. Thank you.

Speaker #4: Thank you, Vivek.

Rishi Sanghvi: Thank you, Vik.

Gaurang Desai: Thank you, Vivek.

Speaker #1: Thank you. The next question is from the line of Abhinav from Equitas Investments. Please proceed.

Operator: Thank you. The next question is from the line of Abhinav from Aequitas Investments. Please proceed.

Rishi Sanghvi: Hi. Thank you for the opportunity. My first question is regarding the revenue mix. Since you mentioned you'll be having one-third of your revenue from renewables, do you expect margin decrease on the total basis? What is the EBITDA margin going forward? Abhinav, thanks for the question. This is Rishi again. What you need to understand is that Sangreen is an asset-light, high ROC business with a lower EBITDA margin. We are able to grow the renewables business beyond the balance sheet because it doesn't require us to deploy capital in Sangreen Future Renewables Limited. It is working capital asset-light. The entirety of our CapEx still remains dedicated to our crane rental business, of which we are doing INR 652 crores this year.

Abhinav Mandowara: Hi. Thank you for the opportunity. My first question is regarding the revenue mix. Since you mentioned you'll be having one-third of your revenue from renewables, do you expect margin decrease on the total basis? What is the EBITDA margin going forward?

Speaker #5: Hi, thank you for the opportunity. My first question is regarding the revenue mix. Since you mentioned you'll be having one-third of your revenue from renewables, do you expect a margin decrease on a total basis?

Speaker #5: What is the EBITDA margin going forward?

Speaker #4: So Abhinav, thanks for the question. This is Rishi again. What you need to understand is that Sanghvi is an asset-light, high-ROCE business with a lower EBITDA margin.

Rishi Sanghvi: Abhinav, thanks for the question. This is Rishi again. What you need to understand is that Sangreen is an asset-light, high ROC business with a lower EBITDA margin. We are able to grow the renewables business beyond the balance sheet because it doesn't require us to deploy capital in Sangreen Future Renewables Limited. It is working capital asset-light. The entirety of our CapEx still remains dedicated to our crane rental business, of which we are doing INR 652 crores this year.

Speaker #4: We are able to grow the renewables business beyond the balance sheet because it doesn't require us to deploy capital in Sanghvi Future Renewable Limited.

Speaker #4: It is a working capital asset-like. So, the entirety of our capex still remains dedicated to our crane rental business, for which we are doing ₹652 crores this year.

Rishi Sanghvi: This is still being deployed at a minimum 80% utilization. The crane business is a CapEx heavy, high EBITDA business. These two businesses that we are talking about, where two-thirds revenue is coming from the crane vertical across geographies and one-third revenue is coming from renewables, they are truly complementary. Now, in terms of guidance, we have given you a detailed guidance in the presentation, which is available on page number 25. This is the KPIs for Q1, and the guidance is further available on page number 90. For FY27, we are projecting EBITDA in the range of INR 525 to 575. Yes, the blended EBITDA margin will be lower, but in absolute terms, it has gone up significantly as the EBITDA in FY26 was INR 429.

Speaker #4: And this is still being deployed at, you know, a minimum 80% utilization 2% year. The crane business is a capex-heavy the crane business is a capex-heavy high EBITDA business.

Speaker #4: So these two businesses that we are talking about, where two-thirds of the revenue is coming from the crane vertical across geographies and one-third of the revenue is coming from renewables, they're truly complementary.

Speaker #4: Now, in terms of guidance, we have given you detailed guidance in the presentation, which is available on page number 25. These are the KPIs for Q1 quarter, and the guidance is further available on page number 90.

Rishi Sanghvi: This is the KPIs for Q1, and the guidance is further available on page number 90. For FY27, we are projecting EBITDA in the range of INR 525 to 575. Yes, the blended EBITDA margin will be lower, but in absolute terms, it has gone up significantly as the EBITDA in FY26 was INR 429. We are forecasting a 20% to 30% growth on this EBITDA for FY27.

Speaker #4: So for FY27, we are projecting an EBITDA in the range of 525 to 575. Yes, the blended EBITDA margin will be lower, but in absolute terms, it has gone up significantly as the EBITDA in FY26 was 429.

Speaker #4: So, we are forecasting a 20 to 30% growth in EBITDA for FY27.

Rishi Sanghvi: We are forecasting a 20% to 30% growth on this EBITDA for FY27. Okay.

Speaker #5: Okay.

Abhinav Mandowara: Thank you.

[Analyst]: Hi, Rishi. This is Rhea here. The question is on terms of debt portion. In your guidance, as per the PPT, it is mentioned that the debt to equity would be around 0.72. If you just take a conservative approach and take your next year's equity, debt will be more than INR 1,000 to 1,100 crores. Is that understanding right?

Speaker #6: Hi Rishi, this is Rhea here. So the question is, in terms of the debt portion, in your guidance as per the PPP, it is mentioned that the debt-to-equity would be around 0.72.

Speaker #6: If we just take a conservative approach and take your next year's equity, the debt would be more than 1,000 to 1,100 crores.

Speaker #6: Is that understanding right? Hello.

Rishi Sanghvi: Hello?

[Analyst]: Hello.

Speaker #5: So, 1.72 is on a control basis, right?

Rishi Sanghvi: Point 0.72 is on consolidated basis, right?

Speaker #6: Right.

[Analyst]: Right.

Rishi Sanghvi: What is your question? Say again.

Speaker #5: So, what is your question? Could you please repeat it?

Rishi Sanghvi: What is your question? Say again.

Speaker #6: So basically, considering we do somewhere around ₹250 to ₹300 crore tax levels, and if I take next year—

[Analyst]: Basically, considering you do somewhere around 1,000 to 300 crores debt levels.

Speaker #4: Sorry Rhea, you're not audible. You need to you need to come again into the we can't hear you.

Rishi Sanghvi: Sorry, Rhea, you're not audible. You need to come again. We can't hear you.

Speaker #6: Hello. Is it better?

[Analyst]: Hello. Is this better?

Speaker #4: Yeah, tell me.

Rishi Sanghvi: Yeah. Tell me.

Speaker #6: Yeah. So this is the guidance given: my debt to equity is 0.72 for the next year. After this, my calculation shows that we would reach a debt of around ₹1,000 to ₹1,100 crores.

[Analyst]: Yeah. This is the guidance given. My debt to equity is 0.72 for the next year. After we took my calculation, it gives me that we would reach a debt of around INR 1,000 to INR 1,100 crores. Is my understanding right? Is this a comfortable debt position we would be going ahead with going forward?

Speaker #6: Is my understanding correct? And is this a comfortable debt position that we would be moving forward with?

Speaker #4: So this ratio, what we projected—0.72—is comfortable. We are conservatively going ahead with that, and the capex are accordingly planned. This will add on the EBITDA margin as well, and we are completely under control of the debt level.

Rishi Sanghvi: This ratio, what we projected, 0.72, is comfortable. We are conservatively going ahead with that, and the CapEx are accordingly planned, which will add on the EBITDA margin as well as we are completely under control of debt level for the financial year FY27. Rhea, the 0.72 debt to equity forecast is at a gross level. Yeah, gross level. It is not at a net level. Correct. We are sitting on a treasury today of more than INR 300 crores surplus. If you look at it, that effective net debt to equity is in the range of 0.3 to point-

Speaker #4: What the financial year FY27. Yeah, the 0.72 debt to equity forecast is is at a gross level, not a gross level. It is not at a net level.

Speaker #4: We are still, we are sitting on a treasury today of more than ₹300 crores surplus. So, if you look at it, the effective net debt to equity is in the range of 0.3 to 0.

Speaker #6: 0.3 to 0.

[Analyst]: Point three to one.

Speaker #4: Okay.

Rishi Sanghvi: Okay?

Speaker #6: Got it. And regarding the ECL provision which you have taken, is this for the India client or KSA? And is it a one-time thing? If you could elaborate more on the ECL provisioning?

[Analyst]: Got it. Regarding the ECL provision which you have taken, this is for India client or KSA, and is it a one-time thing if you could elaborate more on the ECL provision?

Speaker #4: It's mostly all in India. Nothing to KSA or any other country.

Rishi Sanghvi: It's mostly in India. Nothing to KSA or any other country.

Speaker #6: Okay. And so, going forward, are you going to have higher provisioning?

[Analyst]: Okay. Going forward, are you going to have a higher provisioning?

Speaker #4: So, the ECL provision is expected to normalize in the course of the financial year as we recover debtors, which have basically aged. If you look at it from Q4 to Q1, there was a positive swing where almost ₹3 to ₹4 crore of ECL provision was added back to Q4 of FY26.

Rishi Sanghvi: The ECL provision is expected to normalize in the course of the financial year as we recover debtors, which has basically aged. If you look at it from Q4 to Q1, there was a positive swing where almost three to four crores of ECL provision was added back to the Q4 of FY26. This is nothing but a statistical model where the ECL provision has to be accounted for, over the course of the financial year, we expect the ECL provision to normalize as we recover dues from the aged basket.

Speaker #4: So, this is nothing but a statistical model where the ECL provision has to be accounted for. And, over the course of the financial year, we expect the ECL provision to normalize as we recover dues from the age basket.

Speaker #6: Got it. And how much would an age basket of more than 90 days be?

[Analyst]: Got it. How much would be our aged basket more than 90 days?

Speaker #4: As we have given you the numbers in DSO days, you can look at it at a crane rental level, GCC level, and ENC business.

Rishi Sanghvi: We have given you the numbers in DSO days. You can look at it at a crane rental level, GCC level, and E&C business.

Speaker #6: Okay.

[Analyst]: Okay.

Speaker #4: It's already available in the presentation. On page number 25, it's the last row.

Rishi Sanghvi: It's already available in the presentation on page number 25. It's the last row.

Speaker #6: Sure, sure, sure. And for KSA, while we say we are at 4.1, are we purely doing crane rental business there, or are we doing GCC with the entire mix? And do we expect these margins to sustain?

[Analyst]: Sure. For KSA, when we say our EBITDA at 4.1, there we have purely raised crane rental business or we are doing EPC, the entire mix? Do we expect these margins to sustain?

Speaker #4: So, yield is not a margin. Yield is a return on the asset. And yes, in KSA, we expect the rental margin to remain substantially higher going forward.

Rishi Sanghvi: Yield is not a margin.

[Analyst]: Yeah, sorry.

Rishi Sanghvi: Yield is a return on the asset.

[Analyst]: Yeah.

Rishi Sanghvi: Yes, in KSA, we expect the rental margin to remain substantially higher. Going forward, we expect to maintain a 4% yield, notwithstanding the current situation that is there in West Asia. What is worth noting is that the EBITDA margin in KSA is lower than in India. It is around 47%. The reason is because the cost of operations is higher in Saudi Arabia. However, in previous quarter calls we have stated that as we gain experience in the region, we will be able to pull up the EBITDA profile of the business, and we will leverage our 37 years of operational history and legacy in India in KSA.

Speaker #4: We expect to maintain a 4% yield, notwithstanding the current situation in West Asia. What is worth noting is that the EBITDA margin in KSA is lower than in India.

Speaker #4: It is around 47%, and the reason is because the cost of operations is higher in Saudi Arabia. However, in previous quarter calls, we have stated that as we gain experience in the region, we will be able to pull up the EBITDA profile of the business.

Speaker #4: And we will leverage our 37 years of operational history and legacy in India in KSA.

Speaker #6: Got it, got it. And in terms of EPC win—EPC in India—are we seeing any incremental competition in the EPC space that could lead to normalization of margins to around 10–11%?

[Analyst]: Got it. In terms of EPC, wind EPC in India, are we seeing any competition incrementally in the EPC space and that would lead to normalization of margins to around 10%, 11%, like other EPC?

Speaker #6: Like other EPC.

Speaker #4: First of all, we are not in the EPC segment. We are in the engineering and construction segment. We don't do any procurement.

Rishi Sanghvi: First of all, we are not in the EPC segment. We are in the engineering and construction segment. We don't do any procurement as the turbine is pre-issued from the OEM or the IPP.

Rishi Sanghvi: First of all, we are not in the EPC segment. We are in the engineering and construction segment. We don't do any procurement as the turbine is pre-issued from the OEM or the IPP. There is competition, but none of the competition is organized. We are the only organized, well-structured, well-governed company, and this really matters with the clientele that we work with because we work with large PE funds who have platforms which I cannot name in this call. For them, working with a well-governed, well-structured, financially solvent company with a proven track record of execution is extremely important. Our business has delivered almost 18 to 20 gigawatts of erection of wind turbines, and we have been in this space since the inception of the wind industry in India.

Speaker #4: As a turbine, is the issue from the OEM or the IPP? There is competition, but none of the competition is organized. We are the only organized, well-structured, well-governed company.

Rishi Sanghvi: There is competition, but none of the competition is organized. We are the only organized, well-structured, well-governed company, and this really matters with the clientele that we work with because we work with large PE funds who have platforms which I cannot name in this call. For them, working with a well-governed, well-structured, financially solvent company with a proven track record of execution is extremely important. Our business has delivered almost 18 to 20 gigawatts of erection of wind turbines, and we have been in this space since the inception of the wind industry in India.

Speaker #4: And this really matters with the clientele that we work with, because we work with large PE funds who have platforms—such as, which I cannot name on this call.

Speaker #4: And for them, working with a well-governed, well-structured, financially solvent company with a proven track record of execution is extremely important. Our business has delivered almost 18 to 20 gigawatts of erection of wind turbines, and we have been in this space since the inception of the wind industry in India.

Speaker #4: And Sanghvi has been able to leverage this legacy and the financial strength, the governance, etc., of the company to get preferential rates from its customers.

Rishi Sanghvi: Sangreen has been able to leverage this legacy and the financial strength, the governance, et cetera, of the company to get preferential rates from its customers. Therefore, we believe that going forward, we will be able to normalize these margins between 12% and 15% in the E&C business.

Speaker #4: And therefore, we believe that going forward, we will be able to normalize these margins between 12% to 15% in the ENC business.

Speaker #6: Got it, got it. Okay, I went back into Q4 for the question. Thanks, Rashid. Thanks, Colin.

[Analyst]: Got it. Okay. I'll join back in the queue for further questions. Thanks, Yashwi. Thanks, Kolan.

Speaker #2: Thank you. A request to all participants: please restrict your questions to two per participant. For more questions, please rejoin the queue. The next question is from the line of Suneen Jain from Nirmal Bank Securities.

Operator: Thank you. A request to all participants, please restrict your questions to two per participant. For more questions, please rejoin the queue. The next question is from the line of Sunil Jain from Nirmal Bang Securities. Please proceed.

Speaker #2: Please proceed.

Speaker #5: Yeah, thanks for this opportunity. And congratulations on result and also excellent presentation which company had said. Sir, my question relate to GCC. We are seeing that a lot of disturbance are there.

Sunil Jain: Yeah, thanks for this opportunity and congratulations on results and also excellent presentation which company had shared. My question relate to GCC. We are seeing that lot of disturbance are there. How you see the CapEx moving in such a scenario, whether we are able to procure cranes in Middle East or it's getting delayed? What's the timeline you expect for your CapEx in the GCC?

Speaker #5: So, how do you see the capex moving in such a scenario? Are we able to procure cranes in the Middle East, or is it getting delayed?

Speaker #5: And what's the timeline you expect for your CapEx in the GCC?

Speaker #4: Yeah, hi Suneel and thanks for your compliments on the presentation and results. We really appreciate it as a management. So you know given the situation in West Asia, as a the company has been spending a lot of the management including myself has been spending a lot of time in the country.

Rishi Sanghvi: Yeah. Hi, Sunil, and thanks for your compliments on the presentation and results. We really appreciate it as a management. Given the situation in West Asia, the company has been spending a lot of the management, including myself, has been spending a lot of time in the country. What we see is that there are no structural changes to the hypothesis with which we have come to the Middle East. We are still extremely confident and bullish in terms of what the country and the region is doing. We see what we would call as a temporary disruption in supply chain, which will get normalized within this financial year. Whether it is a matter of few months or quarters is to be seen.

Speaker #4: And what we see is that there are no structural changes to the hypothesis with which we have come to the Middle East. We are still extremely confident and bullish in terms of what the country and the region are doing.

Speaker #4: And we see what we would call a temporary disruption in the supply chain, which will get normalized within this financial year, whether it's a matter of a few months or quarters.

Speaker #4: Is to be seen. With respect to our capex allotment, we will be doing approximately ₹300-plus crores, or rather ₹324 crores, of which ₹316 crores is in revenue-generating capex.

Rishi Sanghvi: With respect to our CapEx allotment, we will be doing approximately INR 300 plus crores or rather INR 324 crores, of which INR 316 crores is in revenue generating CapEx in the region. Right now, the entirety of this CapEx orders have been placed on the equipment manufacturers, it is their responsibility to bring the equipment to Saudi Arabia. As far as we are concerned, we do not see any delay in bringing this CapEx to Saudi Arabia, either via Jeddah or via Dammam. We believe that the entirety of this CapEx should come online in terms of revenue generation between Q3 and Q4 of this financial year.

Speaker #4: In the region, right now, the entirety of these capex orders has been placed with the equipment manufacturers, and it is their responsibility to bring the equipment to Saudi Arabia.

Speaker #4: As far as we are concerned, we don't see any delay in bringing this capex to Saudi Arabia—either via Jeddah or via Dammam.

Speaker #4: And we believe that the entirety of this capex should come online in terms of revenue generation between the third and fourth quarters of this financial year.

Speaker #5: Oh, this is something great to hear from you, sir. Second thing, about your ENC business — it's one and a half years since we have come into this business.

Sunil Jain: This is something great to hear from you, sir. Second thing about your E&C business. It is one and a half year since we have come into this business and really seen great performance in that. In fact, you are a bit optimistic on the margin also with your underwriting, and we are getting comparatively better margin. I would just like to understand your feeling about this business and how you see this business, because the pipeline also seems very strong in this. If you can comment on this, how we can see future in this in next two to three years.

Speaker #5: And we've really seen great performance in that. In fact, you are a bit optimistic on the margin. So your underwriting—and we are getting comparatively better margin.

Speaker #5: So, I would just like to understand your feelings about this business and how you see this business, because the pipeline also seems very strong in this. So, if you can comment on how we should view the future of this business in the next two to three years.

Speaker #4: Yeah, Suneel. So if you look at slide number 25 in our presentation, we have discussed the inquiry pipeline of nearly ₹4,656 crore.

Rishi Sanghvi: Yeah, Sunil. If you look at slide number 25 in our presentation, we have disclosed the inquiry pipeline of nearly INR 4,656 crores.

Speaker #5: Yeah.

Speaker #4: Now, we have secured our order book of roughly ₹686 crore to date. We are confident that we will secure additional orders in the course of this financial year.

Sunil Jain: Yeah.

Rishi Sanghvi: We have secured our order book of roughly INR 686 crores till date. We are confident that we will secure additional orders in the course of this financial year, as most of the orders for this year get closed in the second quarter. Considering that the E&C activity in the renewables, the engineering and construction activity, picks up in the second half of the year post-monsoons. We see this order book growing. Currently, we are at INR 686 crores. Our order book is more than our revenue that we had earned in the previous financial year.

Speaker #4: As most of the orders for this year get closed in the second quarter, considering that the ENC activity in renewables—the engineering and construction activity—picks up in the second half of the year, post-monsoons.

Speaker #4: So we see this order book growing; currently, we are at ₹686 crore. So our order book is more than the revenue that we had earned in the previous financial year.

Sunil Jain: Yeah.

Speaker #4: So, in a way, we are bullish on this revenue segment. Really, our ability to execute and translate the inquiry pipeline to the order book, and the order book to revenue, is the decisive winning factor in this business.

Rishi Sanghvi: In a way, we are bullish on this revenue segment, and, really, our ability to execute and translate the inquiry pipeline to order book and order book to revenue is what is the decisive winning factor in this business. While you may say that we are under-guiding and over-delivering, what happens is in engineering and construction business segment, as you scale, there is some deprecation of margin because your execution across projects may slow down due to both internal and external factors. There are lot of significant delays from the client side in terms of site readiness, OEM supply, local ROW issues. Sometimes there are internal delays or challenges in terms of project execution, which may result in a delay in revenue recognition and a translation of the order book to revenue. This may sometimes reduce or suppress the margin.

Speaker #4: While we have guided, while you may say that we are under-guiding and over-delivering, what happens is in the engineering and construction business segment, as you scale, there is some depreciation of margin.

Speaker #4: Because your execution across projects may slow down due to both internal and external factors. You know, there are a lot of significant delays from the client side.

Speaker #4: In terms of site readiness, OEM supply, and local ROW issues, sometimes there are internal delays or challenges in project execution, which may result in a delay in revenue recognition and a translation of the order book to revenue.

Speaker #4: And this may sometimes reduce or suppress the margin. Therefore, there is lumpiness in the revenue recognition dictated by the percentage of completion methodology of accounting.

Rishi Sanghvi: Therefore, there is lumpiness in the revenue recognition dictated by the percentage of completion methodology of accounting. Going forward, we started this business, it was approximately INR 250 crores in the first year. We have doubled that revenue. If you club FFRPL and FLPL, which is Sangreen Logistics and Sangreen Future Renewables, we have doubled last year. This year, it is our expectation to once again double. Every year for three years, we are doubling. Going forward, we would like to maintain this pace of growth. Again, with a caution that our execution abilities will dictate how much exposure and order intake we will take.

Speaker #4: Going forward, you know we started this business— it was approximately ₹250 crore in the first year. We have doubled that revenue if you club SFRPL and SLPL, which is Sangreen Logistics and Sangreen Future Renewables.

Speaker #4: We have doubled last year. This year, it is our expectation to once again double. So, every year for three years, we are doubling. And going forward, we would like to maintain this pace of growth.

Speaker #4: Again, with a caution that our execution abilities will dictate how much exposure and order intake we will take.

Speaker #5: Great, sir. Great. Thank you very much, and all the best for the coming quarters. Thank you very much.

Sunil Jain: Great, sir. Great. Thank you very much and all the best for the coming quarters. Thank you very much.

Speaker #4: Thanks Suneel.

Rishi Sanghvi: Thanks, Sunil.

Operator: Thank you. The next question is from the line of Trishank Jani from Moneybee Investment. Please proceed.

Speaker #3: Thank you. The next question is from the line of Trishank Jani from Money Bee Investment. Please proceed.

Speaker #5: Hello.

Rishi Sanghvi: Hello.

Trushank Jani: Hello.

Speaker #3: Yes sir.

Operator: Yes, sir.

Speaker #5: Yeah, hi. Thanks for the opportunity. My question is regarding the DSO days. So, the Middle East business is reporting a DSO of 201 days, compared to 124 days for the India current rental business.

Trishank Jani: Yeah, hi. Thanks for the opportunity. My question is regarding the DSO days. The Middle East business is recording a DSO of 201 days compared to 124 days for the India clean rental business. Could you explain the key reason for this significant difference, and what is your target timeline to reduce the DSO days going forward?

Trushank Jani: Yeah, hi. Thanks for the opportunity. My question is regarding the DSO days. The Middle East business is recording a DSO of 201 days compared to 124 days for the India clean rental business. Could you explain the key reason for this significant difference, and what is your target timeline to reduce the DSO days going forward?

Speaker #5: Could you explain the key reason for this significant difference? And what is your target timeline to reduce the DSO days going forward?

Speaker #4: Yeah, Mr. Trishank, thanks for the question. I’m sure that you’re aware there is a conflict between the USA and Israel with Iran, and that has caused a certain amount of disruption in West Asia.

Rishi Sanghvi: Yeah, Mr. Trishank, thanks for the question. I'm sure that you're aware that there is a conflict between US and Israel with Iran, and that has caused a certain amount of disruption in West Asia. This DSO that you are seeing is reflective of the situation that is there on ground. Now this is a DSO position that was closed as of June. However, in the month of July, we have recovered a significant portion of the outstanding, and there will be an improvement in the DSO days, which will be published in our Q2 results and will be visible in that. Significant amount of collection has happened in July. Also for this reason, while the yields are definitely better than India, the EBITDA margin is around a 47%.

Speaker #4: So this DSO that you are seeing is reflective of the situation that is there on the ground. Now, this is a DSO position that was closed as of June.

Speaker #4: However, in the month of July, we have recovered a significant portion of the outstanding. And there will be an improvement in the DSO days, which will be published in our Q2 results.

Speaker #4: And will be visible in that. So, a significant amount of collection has happened in July. Also, for this reason, while the yields are definitely better than India, the EBITDA margin is around 47%.

Speaker #4: One of the things which is a known factor when we entered this market was a longer days sales outstanding process. So, it is a known risk.

Rishi Sanghvi: One of the things which is a known factor when we entered this market was a longer days sales outstanding process. It is a known risk and we are doing a lot of things internally to monitor and ensure that this DSO is within control. I am happy to report that although we have such a large, or what we may perceive as a higher DSO as compared to India, we have a zero working capital draw in the Kingdom of Saudi Arabia. We are not pumping money into business operations to keep the operations running. This is a testament to the kind of business that we are seeing there, and our investment thesis to enter into the market.

Speaker #4: And we are doing a lot of things internally to monitor and ensure that this DSO is within control. I am happy to report that although we have such a large, or what we may perceive as a higher DSO as compared to India, we have a zero working capital draw in the Kingdom of Saudi Arabia.

Speaker #4: So we are not pumping money into business operations to keep the operations running. And this is a testament to the kind of business that we are seeing.

Speaker #4: And our investment thesis to enter into the market.

Speaker #5: Okay, I got it. And my second question is regarding Sangreen. Given your 2 gigawatt order book and 5 gigawatt inquiry pipeline, what market share do you expect Sangreen to capture in annual wind energy and construction segments over the next two to three years?

Trishank Jani: Okay. I got it. My second question is regarding the Sangreen. Given your two gigawatts of order book and five gigawatts of inquiry pipeline, what market share do you expect Sangreen to capture in annual wind energy and construction section over the next two to three years?

Trushank Jani: Okay. I got it. My second question is regarding the Sangreen. Given your two gigawatts of order book and five gigawatts of inquiry pipeline, what market share do you expect Sangreen to capture in annual wind energy and construction section over the next two to three years?

Speaker #4: So, first of all, we are not quoting five gigawatts and two gigawatts. We are saying our inquiry pipeline as of today stands at ₹4,656 crore.

Rishi Sanghvi: First of all, we are not quoting five gigawatts and two gigawatts. We are saying our inquiry pipeline as of today stands at INR 4,656 crores, and our order book stands at around INR 686 crores. First, I would like to just correct that statement, please. Secondly, in terms of market share, with this kind of inquiry pipeline, we can convert a significant amount of this inquiry pipeline to orders. We have a reputation for delivering whatever projects that we take. Our ability to build the order book and scale the revenue and eventually improve the performance of the company is dependent on our ability to scale up our execution mandate.

Speaker #4: And our order book stands at around ₹686 crore. So first, I would like to just correct that statement, please. Secondly, in terms of market share, you know, with this kind of inquiry pipeline, we can convert a significant amount of this inquiry pipeline to orders.

Speaker #4: But we have a reputation for delivering whatever projects that we take, and our ability to scale the revenue and build the order book, and scale the revenue, and eventually improve the performance of the company.

Speaker #4: This is dependent on our ability to scale up our execution mandate. So, going forward, in the last three years, as I described to you, we have doubled every year.

Trishank Jani: Okay.

Trushank Jani: Okay.

Rishi Sanghvi: Going forward, in the last 3 years, as I described to you, we have doubled every year. From 250 to 500. This year we are on track to double as our order book already stands at approximately INR 686 crores.

Speaker #4: From 250 to 500. This year, we are on track to double, as our order book already stands at approximately ₹686 crores. Now, okay, a certain percentage of this order book—around 15%—may get postponed into the next financial year on account of a delay in execution of projects caused by the clients, or due to internal delays and inability to recognize revenue due to the POCM methodology of accounting.

Trishank Jani: Okay.

Trushank Jani: Okay.

Rishi Sanghvi: Certain percentage of this order book, around 15%, may get postponed into the next financial year on account of a delay in execution of projects caused by the clients or due to internal delays and inability to recognize revenue due to POC and methodology of accounting. Next year, we can significantly I think we have already given a guidance on the growth that we expect for next year, which is on page number, next year, Pradeep.

Speaker #4: But next year, we can, significantly—I think we have already given guidance on the growth that we expect for next year, which is on the next page.

Speaker #4: Next year.

Speaker #5: Okay. And what is on your page number 19?

Trishank Jani: Okay. What is-

Trushank Jani: Okay. What is-

Rishi Sanghvi: On page number 19, we are giving you a overall group projection, where we are saying that revenue will scale between 30% to 40% and EBITDA will scale between 20% to 30% for FY28. At the EBITDA level, this year we are guiding between INR 525 to 575 crores this year, followed by a growth of about 20% to 30% in FY28 to INR 650 to 700 crores. That is the kind of scale that we are talking about for the group level, which is available on page number 19 of our presentation.

Speaker #4: We are giving you an overall group projection, where we are saying that revenue will scale between 30% to 40%, and EBITDA will scale between 20% to 30% for FY28.

Speaker #4: So, at an EBITDA level this year, we are guiding between ₹525 crores to ₹575 crores. This will be followed by growth of about 20% to 30% in FY28, taking it to ₹650 to ₹700 crores.

Speaker #4: So that is the kind of scale that we are talking about at the group level, which is available on page number 19 of our presentation.

Speaker #5: Yeah, I got it. And what has been your historical inquiry-to-order conversion ratio?

Trishank Jani: Yeah, I got it. What has been your historical enquiry to order conversion ratio?

Trushank Jani: Yeah, I got it. What has been your historical enquiry to order conversion ratio?

Speaker #3: Sorry to interrupt you, Mr. Jani, but could you please rejoin the queue?

Operator: Sorry to interrupt you, Mr. Jani, can you please rejoin the queue?

Speaker #5: Okay. Thanks.

Trishank Jani: Okay. Thank you.

Trushank Jani: Okay. Thank you.

Speaker #3: Thank you. The next question is from the line of Shubhankar Gupta from Equitree Capital. Please proceed.

Operator: Thank you. The next question is from the line of Shubhankar Gupta from Equitree Capital. Please proceed.

Speaker #5: Hey, hi. Congratulations on a good set of numbers, and the presentation is also very detailed. Thanks for that. So, I have three questions in total.

Shubhankar Gupta: Hey. Congratulations on a good set of numbers, the presentation is also very detailed. Thanks for that. I have three questions total. My first question is on the wind E&C EBITDA margins. I see that they've gone up from 11% to 18% on a year-over-year basis. Just want to understand how this rise has come up and at what EBITDA margin do you see this business going. 10% to 12%? Hello.

Speaker #5: Our first question is on the wind ENC EBITDA margins. I see that they've gone up from 11% to 18% on a year-on-year basis.

Speaker #5: I just want to understand how this rise has come about, and at what EBITDA margin do you see this business operating?

Speaker #5: 10 to 12%? Hello?

Speaker #4: So Rishi sir?

Rishi Sanghvi: So

Operator: Rishi, sir.

Speaker #5: So this, yeah. Am I audible? Yes. Hello?

Rishi Sanghvi: Yeah. Am I audible?

Shubhankar Gupta: Yes.

Rishi Sanghvi: Hello.

Speaker #3: Yes, yes.

Operator: Yes.

Speaker #5: So this 18% is before an overlooked expense in the CPC business. If you add and distribute this allocated expense on the different segments, then it will be between 10 to 12%.

Rishi Sanghvi: This 18% is before unallocated expenses in the EPC business. If you add on or distribute this unallocated expense on the different segments, then it will be between 10% to 12%.

Speaker #5: Okay, thank you. So, that is a sustainable number, right? Ten to twelve percent for the wind ENC.

Shubhankar Gupta: Okay. Thank you. That is a sustainable number, right? 10% to 12% for the wind E&C.

Speaker #4: So going forward, we expect the EPC business ENC business. It's not a EPC business. We expect the ENC business to settle anywhere around 12 to 15%.

Rishi Sanghvi: Going forward, we expect the EPC business, E&C business, it's not an EPC business. We expect the E&C business to settle anywhere around 12% to 15%.

Speaker #5: Got it, got it. That's helpful. Second question is on the line of the capex, right? So you've done, I think, ₹92 crore in Q1.

Shubhankar Gupta: Got it. That's helpful. Second question is on the line on the CapEx, right? You've done, I think, INR 92 crores in Q1. I guess that is for around seven, eight machines. Just want to understand, in terms of lifting capacity, what is the total value add which we've done in Q1?

Speaker #5: I guess that is for around seven or eight machines. I just want to understand, in terms of lifting capacity, what is the total value add that we've done in Q1?

Speaker #4: No, we don't share the lifting capacity. What will happen? We don't share the incremental lifting capacity because there's no value to an investor with that information.

Rishi Sanghvi: No, we don't share the incremental lifting capacity, because there's no value to an investor by that, with that information.

Shubhankar Gupta: Okay.

Speaker #4: And it is more of a trade cycle.

Rishi Sanghvi: It is more of a fleet seeker.

Speaker #5: Fair. Fair. I think you did share in one of the earlier PPTs, but it's fine if you're not continuing with that. Totally fair. I just want to understand, from a business perspective, the tenure per project.

Shubhankar Gupta: No, fair. I think you did share in one of the earlier PPTs, but it's fine if you're not continuing with that. Totally fair. Just want to understand from a business understanding perspective, the tenure per project. On average, a crane is deployed at a project for roughly how many days or weeks?

Speaker #5: So on average, a crane is deployed at a project for roughly how many days or weeks?

Speaker #4: Yeah, so there isn’t a straight answer to this because, you know, it varies across industries, it varies across projects—so typically, and also location.

Pradeep Mehta: Yeah. There is no straight answer to this because it varies across industry, it varies across projects and also location. Typically, you may find a shutdown job for 60 days, just as an example, or you may find a wind installation job for 8 months. It depends really on the industry, on the segment, location, et cetera.

Speaker #4: So typically, you know, you may find a shutdown job for 60 days—this is an example—or you may find a wind installation job for eight months.

Speaker #4: So, it depends really on the industry, on the segment, location, etc. But, you know, to add to that—Shubhankar, to add to that—what you need to look at is our capacity utilization for the quarter.

Shubhankar Gupta: Got it.

Rishi Sanghvi: To add to that, Shubhankar.

Shubhankar Gupta: Yes.

Rishi Sanghvi: What you need to look at is our capacity utilization for the quarter. Last year at our annualized basis, our utilization was approximately 80%. For 80% of the duration of the year, our cranes were engaged. Now in an asset rental business where you have mobilization, demobilization, where you need to move the asset from one job site to the next job site, whether it's repairs and maintenance, preventive and breakdown, 80% utilization is an effective utilization of almost 90%.

Speaker #4: So, last year, on an annualized basis, our utilization was approximately 80%. So, for 80% of the duration of the year, our cranes were engaged.

Speaker #4: Now, in an asset rental business where you have mobilization and demobilization—where you need to move the asset from one job site to the next job site, and where there are repairs and maintenance, both preventive and breakdown—you know, 80% utilization is effectively equivalent to almost 90% utilization.

Speaker #4: In this quarter, for Q1, the utilization has been 86%. So, if you add that to a factor of mobilization, demobilization, repairs and maintenance—both preventive and breakdown—you know this is near to 100% utilization.

Shubhankar Gupta: Right.

Rishi Sanghvi: In this quarter for Q1, the utilization has been 86%.

Shubhankar Gupta: Correct.

Rishi Sanghvi: If you add that to factor of mobilization, demobilization, repairs and maintenance, both preventive and breakdown, this is a near to 100% utilization.

Speaker #5: So just from an understanding perspective, Rishi, are you saying that the mobilization and demobilization part is not a part of the capacity you treat?

Shubhankar Gupta: Just from an understanding perspective, Rishi, are you saying that the mobilization and demobilization part is not a part of the capacity utilization? When we say it is 80% utilization.

Speaker #5: So, when we say it's 80% utilization,

Speaker #4: It's not a part of the—?

Rishi Sanghvi: Not a part of the

Speaker #5: Capacity utilization.

Shubhankar Gupta: Capacity utilization.

Speaker #4: Yes. Utilization is calculated as my rental revenue divided by my number of days. Utilization, not yield. Okay? Shubhankar?

Rishi Sanghvi: Yes. Utilization is calculated as my rental revenue divided by my number of days. Utilization, not yield. Okay? Shubhankar.

Speaker #5: Yes, I think by and large it's clear. I'm just...

Shubhankar Gupta: Yes. I think by and large it is clear. I am just trying to understand.

Speaker #4: I think that's your second question. I would request you to please come back into the queue.

Rishi Sanghvi: I think that is your second question. I would request you to come back into the queue.

Speaker #5: Sure. Sure. Thank you.

Shubhankar Gupta: Sure. Thank you.

Speaker #3: Thank you. The next question is from the line of Jai Bharat Trivedi from Incred ENC. Please proceed.

Operator: Thank you. The next question is from the line of Jai Bharat Trivedi from InCred AMC. Please proceed.

Operator: Thank you. The next question is from the line of Jay Bharat Trivedi from InCred AMC. Please proceed.

Speaker #4: Hello. Am I audible?

Jay Trivedi: Hello, am I audible?

Speaker #3: Yes.

Operator: Yes.

Speaker #4: Yeah, thanks for the opportunity, and I really appreciate the effort taken behind the presentation. This is quite detailed. Just one question: the incremental debt that we are going to take, will it be in rupee terms, or are we exploring foreign debt, and what could be the cost of debt?

Jay Trivedi: Yeah, thanks for the opportunity, really appreciate the effort taken behind the presentation. This is quite detailed. Just one question. The incremental debt that we are going to take, will it be in INR terms, or are we exploring foreign debt, what could be the cost of debt? Any ballpark range? That's the only question. Thanks.

Speaker #4: Any ballpark range? That's the only question. Thanks.

Pradeep Mehta: Thank you, Mr. Trivedi. The debts are being taken in India in INR, for overseas companies, these are taken in USD terms. There are different currency and different rate of borrowing for that. India is generally ranging 8% ±0.25. This is the difference. Externally it is SOFR plus spread, which is ranging between 5.5% to 6%.

Speaker #5: See, now the—thank you, Mr. Trivedi. The debts are being taken in India in INR, and for overseas companies, these are taken in dollar terms.

Speaker #5: So there are different currencies and different rates of borrowing for each. In India, it is generally around 8%, plus or minus 0.25%. Externally, it is SOFR plus spread, which is ranging between 5.5% to 6%.

Speaker #4: Any blended cost of it? Hello? Hello? Hello?

Jay Trivedi: Any blended cost of it. Hello?

Speaker #3: Yes, sir.

Rishi Sanghvi: The weighted average cost of borrowing is a balance sheet item. Generally we don't disclose these numbers during our quarterly presentation. When we publish the half yearly balance sheet, at that time we can disclose the weighted average cost of capital. Okay. That is already clear.

Speaker #4: Weighted average cost of—yeah, the weighted average cost of borrowing is a balance sheet item, and generally we don't disclose these numbers during a quarterly presentation.

Speaker #4: When we publish the half-yearly balance sheet, at that time we can disclose the weighted average cost of capital. Okay, sir. Thank you so much.

Jay Trivedi: Thank you so much. Thanks a lot.

Speaker #4: Thanks a lot.

Speaker #3: Thank you. The next question is from the line of Sriram from ITHOT PMS. Please proceed.

Operator: Thank you. The next question is from the line of Sriram from IPOT PMS. Please proceed.

Speaker #5: Thank you for the opportunity. To which sector did we primarily start to serve in KSE, and from which sector are we now receiving more inquiries?

[Analyst] (IPOT PMS): Thanks for the opportunity. To which sector we primarily started to serve in KSA and from which sector are we getting more inquiries?

Speaker #4: Yeah. So, Sriram, thanks for that question. I would guide you to my presentation on KSA. There is a breakdown of the inquiry pipeline, which is available on page number 23.

Rishi Sanghvi: Yes. Sriram, thanks for that question. I would guide you to my presentation on KSA. There is a breakdown of the inquiry pipeline which is available on page number 23. If you look at the 0 to 12 months, we have roughly $4 to 7 million of inquiries coming from infrastructure, $2 to 3 million on housing and entertainment, $3 to 4 million on industry. Industry and housing is another $4 to 7 million, and industries and energy is about another $1 million. This is a breakup of our inquiry pipeline, which is executable in the next 12 months of approximately $22 million. We have also given you a look ahead inquiry pipeline for the second year.

Speaker #4: If you look at the 0 to 12 months, we have roughly $4 to $7 million of inquiries coming from infrastructure, and $2 to $3 million on housing and entertainment.

Speaker #4: $3 to $4 million on industry. Industry and housing is another $4 to $7 million. And industry and energy is about another $1 million.

Speaker #4: This is a breakup of our inquiry pipeline, which is executable in the next 12 months, of approximately $22 million. We have also given you a look-ahead inquiry pipeline for the second year.

Speaker #5: Got it, sir. And my second question is on the—

[Analyst] (IPOT PMS): Got it, sir. My second question is on the.

Rishi Sanghvi: This is all available on page number 23 of the presentation.

Speaker #4: Available? This is all available on page number 23 of the presentation.

Rishi Sanghvi: This is all available on page number 23 of the presentation.

Speaker #5: Yes, sir. Got it. Sir, my second question is on the wind ENC. Does our scope of work change from contract to contract?

[Analyst] (IPOT PMS): Yes, sir. Got it. Sir, my second question is on the wind E&C. Does our scope of work change contract to contract?

Speaker #4: Absolutely, Sriram. It depends on what scope the customer wants to provide to us. The scope is split across five different service offerings, which are mechanical.

Rishi Sanghvi: Absolutely, Sriram. It depends on what scope the customer wants to provide to us. The scope is split across five different service offerings, which are mechanical, which includes the crane, manpower, and inter-cabling services, along with the commissioning of the turbine, electrical scope, civil scope, ROW land and ROW and permits, as well as surface logistics. Depending on the nature of the contract, the client, the location, the scope of work varies.

Speaker #4: It includes the crane, E, manpower, and intercutting services along with the commissioning of the turbine. Electrical scope, civil scope, ROW, land and ROW and permits, as well as surface logistics.

Speaker #4: So depending on the nature of the contract, the client, and the location, the scope of work varies.

[Analyst] (IPOT PMS): Understood, sir. I will end with the final question. Going forward, will we be adding more depots in GCC countries or within Saudi?

Speaker #5: Understood, sir. So, I will end with a final question. Going forward, will we be adding more depots in GCC countries or within Saudi?

Speaker #4: Yes, we will be adding a depot. It is in our strategic plan. As of right now, we cannot disclose the location or the timelines.

Rishi Sanghvi: Yes, we will be adding depots. It is in our strategic plan. As of right now, we cannot disclose the location and the timeline. There is a depot addition strategy which spans not only KSA, but also the other countries in which we operate, which as of today are KSA and Qatar.

Speaker #4: But there is a depot addition strategy, which spans not only KSA but also the other countries in which we operate, which as of today are KSA and Qatar.

Speaker #5: Got it, sir. Thank you very much.

[Analyst] (IPOT PMS): Noted, sir. Thank you very much.

Speaker #3: Thank you. A reminder to all participants: anyone who wishes to ask a question may press star and one on their touch-tone telephone. The next question is from the line of Kushal Goenka from Ambal Keshav Financials.

Operator: Thank you. A reminder to all participants, anyone who wishes to ask a question may press star and one on their touch-tone telephone. The next question is from the line of Kushal Goenka from Mangal Keshav Financials. Please proceed.

Speaker #3: Please proceed.

Speaker #5: Yeah, hi. Congratulations on becoming the third-largest payment and equipment company in the world. My question is, sir: What measurable or quantitative insights do you benchmark to your demand base?

Kushal Goenka: Yeah. Hi. Congratulations on becoming the third largest crane rental equipment company in the world. My question is, sir, what measurable quantitative insights do you benchmark to determine this? If you can give any ballpark numbers, what can be the difference between the first and we as third inventory numbers?

Speaker #5: And if you can give any ballpark numbers, what could be the difference between the first and the third in terms of numbers?

Speaker #4: So, the ranking is established by International Cranes, which is an industry-recognized and gold-standard magazine. The largest crane rental company in the world is Mahmood, which is owned by a private equity family.

Rishi Sanghvi: The ranking is established by International Crane, which is an industry recognized and gold standard magazine. The largest crane rental company in the world is Mammoet, which is owned by a private equity family. The second is Sarens. The ranking is determined by cumulative lifting capacity. This is available online, and the differences between each company's cumulative lifting capacity is available in this ranking.

Speaker #4: The second is Saren, and the ranking is determined by cumulative listing capacity. This is available online, and the differences between each company's cumulative listing capacity are available in this ranking.

Speaker #5: Okay, sir. Thank you, sir. Sir, my second question is: Can we move on to others using words like 'precision,' 'no margin of error,' etc., on the LinkedIn post?

Kushal Goenka: Okay. Thank you, sir. Sir, my second question is, Sanghvi always uses words like precision, no margin of error, et cetera, on the LinkedIn post, which really shows the true strength and capability of the company. My question is, till date, has there been any accident due to a technical issue at RM? If not, how do we ensure such high quality and standards, and as we are addressing new geographies, so how do you maintain that at the highest level?

Speaker #5: Which really shows the true strength and capability of the company. My question is, to date, has there been any accident due to a technical issue at RN?

Speaker #5: And if not, how do we ensure such high quality and standards? As we are addressing more geographies, how do we maintain that at the highest level?

Speaker #4: So Kushal, yes, there have been accidents. However, our safety record is almost impeccable. Having said that, we will not boast that there will never be an accident.

Rishi Sanghvi: Kushal, yes, there have been accidents. However, our safety record is almost impeccable. Having said that, we will not boast that there has been never an accident, but we take lot of efforts in terms of preventing of safety. There are checklists, there are SOPs in place, there are safety councils in place. We take safety as a very important value differentiator when we work with a client.

Speaker #4: But we take a lot of efforts in terms of prevention of safety. So there are checklists, there are SOPs in place, and there are safety councils in place.

Speaker #4: We take safety as a very, very important value differentiator when we work with the client. So, the question is: how do you ensure that safety remains a gold standard across the different geographies that we operate in?

Rishi Sanghvi: To the question on how do you ensure that safety remains a gold standard across different geographies that we operate. You see, my father started this business in 1989, and he was the godfather of this industry. The lifting industry did not exist before he started. Mr. Chandradatt Sanghvi started Sanghvi Movers Limited. When we imported our first crane, there wasn't an operator in the country who could operate this German technology. No one had seen such a crane. We have developed over the last 36 years, very sound and fundamental operating capabilities, technically, operationally, and safety. This has been the cornerstone of what has led us to scale up. We have truly been nation developers. If it wasn't for Sanghvi Movers Limited, then infrastructure of the country would be set back by 2 years.

Speaker #4: You see, my father started this business in 1989, and he was the godfather of this industry. You know, the lifting industry did not exist before he started.

Speaker #4: My Mr. Chandrakant Sanghvi started Sanghvi Movers Limited. So when we imported our first crane, there wasn’t an operator in the country who could operate this German technology.

Speaker #4: No one had seen such a crane. So we have developed, over the last 36 years, very sound and fundamental operating capabilities—technically, operationally, and in terms of safety.

Speaker #4: And this has been the cornerstone of what has led us to scale up. We have truly been nation builders. If it wasn't for Sanghvi Movers Limited, then the infrastructure of the country would be set back by two years.

Speaker #4: Now, as we expand globally, what we do is what is called a transfer of these golden capabilities to new markets. So, when we opened in KSA, we transferred a lot of our seasoned operators on the cranes, safety officers, operation managers, fleet managers—we transferred such people from India to KSA.

Rishi Sanghvi: Now, as we expand globally, what we do is, we do what is called as a transfer of these golden capabilities to new markets. When we opened KSA, we transferred a lot of our seasoned operators on the crane, safety officers, operation managers, fleet managers. We transferred such people from India to KSA. Under the local leadership in KSA, which is Dr. Almanaseer, who's also a veteran of this industry. He was a country manager for a lot of crane rental companies. The local know-how and our institutional knowledge work together to ensure that the brand reputation of Sanghvi Movers is not impacted, but it is in fact enhanced. As an example, we are one of the fastest crane rental companies that have been approved to work in Aramco, and we have already executed a shutdown job in Aramco.

Speaker #4: And under the local leadership in KSA, which is Dr. Arman Aseef, who is also a veteran of this industry—he was a country manager for a lot of crane rental companies.

Speaker #4: The local know-how and our institutional knowledge work together to ensure that the brand reputation of Sanghvi Movers is not impacted; in fact, it is enhanced.

Speaker #4: So, as an example, we are one of the fastest crane rental companies that have been approved to work in Aramco, and we have already executed a shutdown job in Aramco.

Speaker #4: And Aramco is a gold standard for the crane rental industry worldwide. So this is an example where we have been able to prove and strengthen our brand.

Rishi Sanghvi: Aramco is a gold lifting standard for the crane rental industry worldwide. This is an example where we have been able to prove and strengthen our brand. Okay? Thanks, Kushal. Huda?

Speaker #4: Okay? So thanks, Kushal.

Speaker #5: Thank you so much, sir.

Kushal Goenka: Thank you so much for your time.

Speaker #4: That is the last question.

Rishi Sanghvi: That is the last question. Yeah. Thank you. I will just close the comments. First off, Huda, thank you for facilitating and moderating this conversation. I want to thank all the investors who have taken time out to join the conference call. We really appreciate your time. We have spent a significant amount of time and effort to improve our disclosures, which we have made a public declaration of doing. Going forward, we will continue to report on our performance based in this same format, including on the guidance and the quarterly KPI dashboard. This, we hope, will create long-term investor confidence in the narrative that the management is communicating to all its stakeholders.

Speaker #3: Sure, sir.

Speaker #4: Thank you. Thank you. So, I will just close the comments, first, of Huda. Thank you for facilitating and moderating this conversation. I want to thank all the investors who have taken time out to join the conference call.

Speaker #4: We really appreciate your time. We have spent a significant amount of time and effort to improve our disclosures, which we have made a public declaration of doing.

Speaker #4: Going forward, we will continue to report on our performance based on this same format, including on the guidance and the quarterly KPI dashboard. We hope this will create long-term investor confidence in the narrative that the management is communicating to all its stakeholders.

Speaker #4: Further, I would be remiss if I did not acknowledge the hard efforts of all the employees of the company, especially the frontline workers who work day in and day out to build this nation's infrastructure.

Rishi Sanghvi: Further, I would be remiss if not to acknowledge the hard efforts of all the employees of the company, especially the frontline workers who work day in and day out to build this nation's infrastructure. Thank you everyone, and have a good day.

Speaker #4: Thank you, everyone, and have a good day.

Speaker #3: Thank you. On behalf of Sanghi Movers Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line. Thank you.

Operator: Thank you. On behalf of Sanghvi Movers Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line. Thank you.

Browse all earnings call transcripts

Q1 2027 Sanghvi Movers Ltd Earnings Call

Request TrialDemo

Sanghvi

Earnings