Q1 2027 Skipper Ltd Earnings Call

August 12, 2026

Speaker #1: Ladies and gentlemen, good day and welcome to the Skipper Limited Q1 FY27 earnings conference call, hosted by ICICI Securities Limited. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Operator: Ladies and gentlemen, good day and welcome to Skipper Limited Q1 FY27 earnings conference call hosted by ICICI Securities Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Naveen Sahadeo. Thank you, and over to you, sir.

Speaker #1: Should you need assistance during the conference call, please signal an operator by pressing star and zero on your touch-tone phone. Please note that this conference is being recorded.

Speaker #1: I now hand the conference over to Mr. Naveen Sahadeo. Thank you, and over to you, sir.

Speaker #2: Thank you, Anushka. Good evening, everyone. On behalf of ICICI Securities, I welcome you all to the Q1 FY27 earnings call of Skipper Limited. From the company, we have with us Mr. Sharan Bansal, Director; Mr. Shiv Shankar Gupta, CFO; and Mr. Aditya Dujari, AVP Finance and Head of Investor Relations.

Navin Sahadeo: Thank you, Anushka. Good evening, everyone. On behalf of ICICI Securities, I welcome you all to the Q1 FY27 earnings call of Skipper Limited. From the company, we have with us Mr. Sharan Bansal, Director, Mr. Shiv Shankar Gupta, CFO, and Mr. Aditya Dujari, AVP Finance and Head Investor Relations. Without any further ado, I hand over the call to the management for their opening comments. Over to you, sir.

Speaker #2: So, without any further ado, I hand over the call to the management for their opening comments. Over to you, sir.

Speaker #3: Yes. Good afternoon, everyone, and thank you for joining us today. Before we proceed, I would like to draw your attention to the fact that certain statements made during the call may be forward-looking in nature and should be considered in conjunction with the risks and uncertainties associated with our industry and business.

Sharan Bansal: Yes. Good afternoon, everyone, and thank you for joining us today. Before we proceed, I would like to draw your attention to the fact that certain statements made during the call may be forward-looking in nature and should be considered in conjunction with the risks and uncertainties associated with our industry and business. We are pleased to report another quarter of resilient execution despite a challenging external environment. We ended last year with a lower-than-expected order inflow due to subdued domestic bidding and various geopolitical and tariff-related uncertainties in a lot of our export markets. During the quarter, geopolitical developments temporarily impacted export dispatches and revenue recognition. However, the strength of our domestic business, disciplined project execution, and continued focus on operational excellence enabled us to deliver our highest-ever first quarter revenue while further improving profitability across every metric.

Speaker #3: We are pleased to report another quarter of resilient execution, despite a challenging external environment. We ended last year with a lower-than-expected order inflow due to subdued domestic bidding and various geopolitical and tariff-related uncertainties in many of our export markets.

Speaker #3: During the quarter, geopolitical developments temporarily impacted export dispatches and revenue recognition. However, the strength of our domestic business, disciplined project execution, and continued focus on operational excellence enabled us to deliver our highest-ever first-quarter revenue, while further improving profitability across every metric.

Speaker #3: For the quarter, revenue grew 4.5% year-on-year to a record ₹1,310 crore. More importantly, EBITDA increased 10% to ₹140 crore, with margin expanding by 60 basis points to 10.7%.

Sharan Bansal: For the quarter, revenue grew 4.5% year-on-year to a record INR 1,310 crores. More importantly, EBITDA increased 10% to INR 140 crores, with margins expanding by 60 basis points to 10.7%. PBT grew 27%, while PAT increased 26% to INR 56.5 crores, reflecting the benefits of improved operational leverage, a better project mix, and continued cost optimization. Finance costs reduced to 33.6% of revenue from 4.2% last year, further strengthening earnings quality. Beyond financial performance, this quarter marked an important milestone in strengthening our balance sheet. We successfully completed a INR 433.5 crores preferential equity raise from marquee global and domestic long-only institutional investors, substantially enhancing our financial flexibility. This was followed by CRISIL upgrading our long-term credit rating to CRISIL A+/Stable in July, validating our stronger financial profile, prudent capital allocation, and consistent operating performance. Together, these developments are expected to lower our cost of capital and support our next phase of growth.

Speaker #3: PBT grew 27%, while PAC increased 26% to ₹56.5 crores. Reflecting the benefits of improved operational leverage, a better project mix, and continued cost optimization, finance costs reduced to 3.6% of revenue from 4.2% last year.

Speaker #3: Further strengthening earnings quality—beyond financial performance, this quarter marked an important milestone in strengthening our balance sheet. We successfully completed a ₹433.5 crore preferential equity raise from marquee global and domestic long-only institutional investors.

Speaker #3: Substantially enhancing our financial flexibility. This was followed by CRISIL upgrading our long-term credit rating to A+ Stable in July, validating our stronger financial profile.

Sharan Bansal: This was followed by CRISIL upgrading our long-term credit rating to CRISIL A+/Stable in July, validating our stronger financial profile, prudent capital allocation, and consistent operating performance. Together, these developments are expected to lower our cost of capital and support our next phase of growth.

Speaker #3: Prudent capital allocation and consistent operating performance—together, these developments are expected to lower our cost of capital and support our next phase of growth.

Speaker #3: Operationally, business momentum remains robust as we continue to build on our leadership position in the transmission infrastructure sector. We closed the quarter with our highest-ever unexecuted order book of over ₹9,200 crore, representing healthy growth over March 26 and providing strong multi-year revenue visibility.

Sharan Bansal: Operationally, business momentum remains robust as we continue to build on our leadership position in the transmission infrastructure sector. We closed the quarter with our highest-ever unexecuted order book of over INR 9,200 crores, representing healthy growth over March 2026 and providing strong multiyear revenue visibility. During the quarter, we secured fresh order inflows of approximately INR 1,674 crores, while our bidding pipeline expanded to an all-time high level of INR 35,000 crores, supported by robust domestic transmission investments and improving opportunities across international markets. We secured two 765 kV projects from a reputed developer in the state of Maharashtra, and successfully completed qualification audits from developed market customers, including USA, Finland, and Australia, while strengthening our international presence with establishment of subsidiaries in Brazil and UAE. The USA entity is also expected to become operational shortly.

Speaker #3: During the quarter, we secured fresh order inflows of approximately ₹1,674 crore, while our bidding pipeline expanded to an all-time high level of ₹35,000 crore.

Speaker #3: Supported by robust domestic transmission investment and improving opportunities across international markets, we secured 2,765 kB projects from a reputed developer in the state of Maharashtra, and successfully completed qualification audits from developed market customers, including the USA, Finland, and Australia, while strengthening our international presence with the establishment of subsidiaries in Brazil and the UAE.

Speaker #3: The USA entity is also expected to become operational shortly. Further, the ongoing 75,000-ton capacity expansion is expected to become operational during the second half of the year, taking our total manufacturing capacity to 450,000 tons per annum.

Sharan Bansal: Further, the ongoing 75,000 ton capacity expansion is expected to become operational during the second half of the year, taking our total manufacturing capacity to 450,000 tons per annum, further strengthening our position as the largest power T&D structure manufacturer in the country. Looking ahead, we expect FY27 to be H2 weighted. As export logistics normalize, capacity utilization improves, and recently secured orders move into execution, we expect stronger growth momentum during the second half. Our focus remains on improving project mix, driving operational efficiencies, expanding exports, strengthening return ratios, and maintaining a disciplined balance sheet. The long-term outlook for the power transmission sector remains exceptionally strong. Accelerated investments in renewable energy integration, HVDC corridors, Inter-State Transmission System infrastructure, and rising electrification across both and global markets continue to create significant opportunities.

Speaker #3: Further strengthening our position as the largest power TNB structure manufacturer in the country. Looking ahead, we expect FY27 to be two-weighted, as export logistics normalize, capacity utilization improves, and recently secured orders move into execution. We expect stronger growth momentum during the second half. Our focus remains on improving project mix, driving operational efficiency, expanding exports, strengthening return ratios, and maintaining a disciplined balance sheet.

Speaker #3: The long-term outlook for the power transmission sector remains exceptionally strong. Accelerated investments in renewable energy integration, HVDC corridors, interstate transmission infrastructure, and rising electrification across both domestic and global markets continue to create significant opportunities.

Speaker #3: With our strengthened balance sheet, expanded manufacturing footprint, healthy order pipeline, and improving profitability, we believe Skipper is well positioned to deliver sustainable growth and create long-term value for all stakeholders.

Sharan Bansal: With our strengthened balance sheet, expanded manufacturing footprint, healthy order pipeline, and improving profitability, we believe Skipper is well-positioned to deliver sustainable growth and create long-term value for all stakeholders. Thank you, and I look forward to your questions.

Speaker #3: Thank you, and I look forward to your 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 one on their touch-tone telephone. If you wish to remove yourself from the question queue, please press star two.

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 touchtone 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 Aditya Vora from Axis Securities. Please proceed.

Speaker #1: You may press star and two. Participants are requested to use the 'hands up' feature when asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.

Speaker #1: The first question is from the line of Aditya Verger from Axis Securities. Please proceed.

Speaker #2: Yeah. Thanks, sir, for this opportunity, and congrats for the decent set of numbers. So my question is with respect to ordering and awarding. Are we seeing any pickup in ordering activity? Because compared to last year and FY '26, we have seen some slowdown.

Aditya Vora: Yeah. Thanks, sir, for this opportunity, and congrats for the decent set of numbers. My question is with respect to ordering and awarding. Are we seeing any pickup in ordering activity? Which as compared to last year in FY26, we have seen some slowdown. Is the ordering environment improving? Any color on that?

Aditya Welekar: Yeah. Thanks, sir, for this opportunity, and congrats for the decent set of numbers. My question is with respect to ordering and awarding. Are we seeing any pickup in ordering activity? Which as compared to last year in FY26, we have seen some slowdown. Is the ordering environment improving? Any color on that?

Speaker #2: So, is the ordering environment improving? Any color on that?

Speaker #3: Yes, thank you for the question. And definitely, the ordering has certainly picked up in this financial year. We have seen a number of bids getting finalized.

Sharan Bansal: Yes. Thank you for the question. The ordering has certainly picked up in this financial year. We have seen a number of bids getting finalized, and we believe that those order inflows will start translating from Q2 itself. We are expecting bids of close to INR 90,000 to INR 100,000 crores of bids in the Indian transmission market in this financial year. Also on terms of the export side, we are seeing good traction coming from a number of markets, including our focus areas, which is the developed markets of USA and Australia. So these markets also we are seeing very good positive development. We definitely do expect FY27 to be much better compared to FY26 in overall ordering.

Speaker #3: And we believe that those order inflows will start translating from quarter two itself we have seen we are expecting bids of close to 90,000 to 1 lakh crores.

Speaker #3: Of bids in the Indian transmission market in this financial year, and also in terms of the export side, we are seeing good traction coming from a number of markets, including our focus areas, which are the developed markets of the USA and Australia.

Speaker #3: So, in these markets as well, we are seeing very good positive developments. So we definitely do expect FY27 to be much better compared to FY26 in overall ordering.

Speaker #2: Understood. And just to get a broader perspective on the sector in general, we have ₹9.2 trillion of capex earmarked, but that has been divided into two parts.

Aditya Vora: Understood. Just to get a broader perspective on the sector in general, we have INR 9.2 trillion of CapEx earmarked, but that has been divided into two parts, from FY20 to 2027 and then 2027 to 2032. Currently, where are we in that entire execution CapEx cycle, and how much is still remaining?

Aditya Welekar: Understood. Just to get a broader perspective on the sector in general, we have INR 9.2 trillion of CapEx earmarked, but that has been divided into two parts, from FY20 to 2027 and then 2027 to 2032. Currently, where are we in that entire execution CapEx cycle, and how much is still remaining?

Speaker #2: From FY20 to '27, and then '27 to '32. So, currently, where are we in that entire execution capex cycle? And how much is still remaining?

Sharan Bansal: Annually, we can expect that, like I said, 90,000 to 100,000 crores of bids in the transmission sector. This year, that is what we are expecting to see. Our estimate is so far just about 40% of the total bids of 900,000 crores have been bidded so far.

Speaker #3: We are seeing annually, we can expect that, you know, like I said, ₹90,000 to ₹1 lakh crore of bids in the transmission sector. Like this year, that is what we are expecting to see.

Speaker #3: So our estimate is that so far, just about 40% of the total bids of ₹9 lakh crores have been bid so far.

Speaker #2: Understood. Just one last one. On the means we have seen in this quarter, our finance cost has declined and that has led to growth in our PAT.

Aditya Vora: Understood. Just one last one. We have seen in this quarter our finance cost has declined, and that has led to growth in our PAT. Is it due to the drawdown or the decline in our gross debt, post our QIP?

Aditya Welekar: Understood. Just one last one. We have seen in this quarter our finance cost has declined, and that has led to growth in our PAT. Is it due to the drawdown or the decline in our gross debt, post our QIP?

Speaker #2: So, is it due to the drawdown or the decline in our gross state post our QIP?

Speaker #3: No, our fundraiser actually came in at the end of July, or in fact, the first week of August is when we received the funds.

Sharan Bansal: No, our fundraise actually came in the end of July, or in fact, the first week of August is when we received the funds. Q1 did not see any benefit from the fundraise. Whatever improvement you are seeing in the finance cost is purely due to better working capital management and overall operational leverage of the company.

Speaker #3: So, Quarter 1 did not see any benefit from the fundraise. Whatever improvement you are seeing in the finance cost is purely due to better operations, better working capital management, and overall operational leverage of the company.

Speaker #2: And that's great to hear. So how much are we expecting the finance cost to go down? I mean, once this happens, because you will use that fund to reduce your debt.

Aditya Vora: And that is great to hear. How much are we expecting the finance cost to go down because you will use that fund to reduce your debt. How much is the current debt position, and how much it will go down to further?

Aditya Welekar: And that is great to hear. How much are we expecting the finance cost to go down because you will use that fund to reduce your debt. How much is the current debt position, and how much it will go down to further?

Speaker #2: Means and how much is the current debt position and how much it will go down to further?

Speaker #3: I believe that this year our finance cost should be somewhere between 3.2% to 3.5% for the whole year, after this fundraise.

Sharan Bansal: I believe that this year, our finance cost should be somewhere between 3.2% to 3.5% for the whole year after this fundraise.

Speaker #2: Thanks a lot. Thank you, and all the best.

Aditya Vora: Thanks a lot. Thank you, and all the best.

Aditya Welekar: Thanks a lot. Thank you, and all the best.

Speaker #3: Thank you.

Sharan Bansal: Thank you.

Speaker #1: Thank you. We will take the next question from the line of Renga Varshini from Weldified. Please proceed.

Operator: Thank you. We take the next question from the line of Renga Varshini from Wealthify. Please proceed.

Speaker #4: Hello, sir. Congratulations on the good set of numbers. Am I audible?

Renga Varshini: Hello, sir. Congratulations on the good set of numbers. Am I audible?

Speaker #3: Yes please.

Sharan Bansal: Yes, please.

Speaker #4: My first question is on the export revenue. Is it completely lost, or delayed for a longer period, due to geopolitical disruptions? My second question is on the growth guidance of approximately 15% given for the financial year.

Renga Varshini: My first question is on the export revenue. Is it completely lost or delayed for a longer period due to geopolitical disruptions? My second question is on the growth guidance of approximately 15% given for the financial year, and for this quarter we were able to achieve some 4% kind of growth. For the remaining quarters of the year, on which segment do we expect growth to achieve this target of 15%? Third, we have a strong order book of INR 9,200 crore. Can you please quantify on what percentage of it will be completed by the end of, let's say, FY27 and end of FY28? That will be helpful, sir.

Speaker #4: And for this quarter, we were able to achieve about 4% growth. For the remaining quarters of the year, on which segment do we expect growth to achieve this target of 15%?

Speaker #4: Third, we have a strong order book of ₹9,200 crore. So, can you please quantify what percentage of it will be completed by the end of, let's say, FY27 and by the end of FY28?

Speaker #4: That will be helpful sir.

Speaker #3: Okay, sure. So, regarding your first question, I can tell you very strongly that export revenue—just export—ordering is certainly not stopped or slowed down.

Sharan Bansal: Okay, sure. Regarding your first question, I can tell you very strongly that export revenue is just export ordering. It is certainly not stopped or slowed down. Last year we saw certain uncertainties with regarding to tariff as well as overall geopolitical issues in the Middle East. However, this year there is already a strong bounce back. We are in advanced level of contract discussions with a number of buyers, and we should start seeing those orders coming in from Q2 itself. So definitely the export opportunity is very robust. All over the world, there is a very strong push for transmission grid investments thanks to renewables and AI data centers. In fact, in many locations in the US, data centers are not getting clearance because the grid does not have enough power to supply to the new data centers.

Speaker #3: Last year we saw certain uncertainties with regarding to tariff as well as overall geopolitical issues in the Middle East. However this year there is already a strong bounce back.

Speaker #3: We are in advanced level of contract discussions with a number of buyers and we should start seeing those orders coming in from quarter two itself.

Speaker #3: So definitely the export opportunity is very robust. All over the world there is a very strong push for transmission grid investments thanks to renewables and AI data centers.

Speaker #3: In fact in many locations in the US data centers are not getting clearance because the grid does not have enough power to supply to the new data centers.

Speaker #3: So, certainly, we believe that export opportunities are going to be very robust. We ourselves are expecting more than a 50% jump in export order inflow compared to last year.

Sharan Bansal: Certainly, we believe that export opportunities are going to be very robust. We ourselves are expecting more than a 50% jump in export order inflow compared to last year. So this is on the export side, where it is definitely much more positive compared to last year. Regarding your second question about guidance of 15%. Despite the Q1 growth of about 5%, Q1 and Q2 are generally the slowest in terms of execution because of incoming monsoons and monsoon periods. Of course, this Q1 we were also impacted by West Bengal elections and the freight disruptions in the export side. So overall, for the year, we still maintain our 15% guidance. We are quite confident we will achieve that. It will come a combination of all our three segments in engineering, polymer and infra.

Speaker #3: So, this is on the export side. It is definitely much, much more positive compared to last year. Regarding your second question about guidance of 15%...

Speaker #3: So despite the first quarter growth of about 5%, you can see that the first quarter and quarter two are generally the lower, the slowest in terms of execution.

Speaker #3: You know, because of the incoming monsoons and the monsoon period, and of course, this first quarter we were also impacted by the West Bengal elections and the freight disruptions on the export side.

Speaker #3: So overall for the year, we still maintain our 15% guidance. We are quite confident we will achieve that, and it will come from a combination of all our three segments.

Speaker #3: In engineering, polymer, and infra—we expect that. This year, already in the first quarter, we have seen good growth. So we are definitely expecting higher growth in the infra segment overall for the year.

Sharan Bansal: Infra, we expect that this year, already in the Q1, we have seen a good growth. So we are definitely expecting a higher growth in infra segment overall in the year, thanks to all the execution that will likely pick up post Q2 as well. Regarding your third question about order book of INR 9,200 crore. Typically, our orders are executable over a period of 2 to 2.5 years. So we believe that in this year, in FY27, out of this INR 9,200, approximately INR 5,000 crore will be executed, and then there will be certain short-term orders also that will come during the year. So I hope that answers all the three of your questions.

Speaker #3: Thanks to all the execution that will likely pick up post–quarter two as well. And regarding your third question about the order book of ₹9,200 crore.

Speaker #3: So, typically, our orders are executable over a period of two to two and a half years. So we believe that in this year, in FY27, out of this ₹9,200 crore, approximately ₹5,000 crore will be executed.

Speaker #3: And then there will be certain short-term orders also that will come during the year. So that I hope that answers all the three of your questions.

Speaker #4: Thanks sir. Understood. Thank you very much and all the very best sir.

Renga Varshini: Yes, sir. Understood. Thank you very much and all the very best, sir.

Speaker #3: Thank you.

Sharan Bansal: Thank you.

Speaker #1: Thank you. We will take the next question from the line of K1 at Axis Capital. Please proceed.

Operator: Thank you. We take the next question from the line of Kewal from Axis Capital. Please proceed.

[Analyst] (Axis Capital): Am I audible?

Speaker #5: Am I audible?

Speaker #3: Yes sir you are.

Sharan Bansal: Yes, sir, you are.

Speaker #5: Yes, thank you for the opportunity, and congratulations on a decent set of numbers. My first question is regarding the sector outlook. In the TBCB market, we saw some bidding moderation in FY26.

[Analyst] (Axis Capital): Yes. Thank you for the opportunity, and congratulations for the decent set of numbers. My first question is regarding the sector outlook. In the TBCB market, we saw some bidding moderation in FY26. With our strong Q1 inflows, are we seeing any deferred projects? Likewise, how much growth in percentage terms do you expect in TBCB side for FY27?

Speaker #5: So, with strong Q1 inflows, are we seeing any deferred projects? And likewise, how much growth in percentage terms do you expect on the TBCB side for FY27?

Speaker #3: As I was telling the previous caller, last year we saw muted bidding activity—close to about, you know, ₹50,000 to ₹60,000 crores only in the TBCB segment.

Sharan Bansal: As I was telling the previous caller, last year we saw a muted bidding activity of close to about INR 50,000 to 60,000 crore only in the TBCB segment. But this year, we expect that number to go up to INR 90,000 to 100,000. It is further boosted by the fact that now we are seeing a lot of intrastate projects also come up for bidding. Earlier, what used to happen that the interstate project, the ISTS projects were the only ones coming up for TBCB, and all the intrastate was still being done by the state transmission companies through EPC route. However, now what we are seeing is that all projects, whether it is interstate or intrastate, they are all coming through the TBCB route. The project pipeline is also very robust as published by the NTC, National Transmission Plan.

Speaker #3: But this year, we expect that number to go up to 90,000 to 1,00,000, and it is further boosted by the fact that now we are seeing a lot of intra-state projects also come up for bidding.

Speaker #3: Earlier what used to happen that the interstate project the ISTS projects were the only ones coming up for TBCB. And all the infra state was still being done by the state transmission companies through EPC route.

Speaker #3: However, now what we are seeing is that all projects, whether it is interstate or intrastate, are all coming through the TBCB route.

Speaker #3: And the project pipeline is also very robust, as published by the NTC, National Transmission Council. And also, what we are seeing is the bidding activity.

Sharan Bansal: Also what we are the bidding activity which we are seeing. We are quite confident that the INR 90,000 to 100,000 crore will be bidded this year. Already number of bids have already been floated. In fact, in the sector, the large number of new players, new developers are also coming in. A lot of foreign capital has also been coming in, you might have heard of I Squared, which has set up a platform, Cube Grid. Then National Investment and Infrastructure Fund, which is the sovereign government of India fund. They have launched a new platform for Anand Grid. So there are a lot of new foreign capital also which is giving the transmission sector.

Speaker #3: So we are quite confident that the ₹90,000 to ₹1 lakh crore will be bidded this year. Already, a number of bids have already been floated.

Speaker #3: And in fact, in the sector, a large number of new players and new developers are also coming in. A lot of foreign capital has also been coming in. You know, you might have heard of I Squared, which has set up a platform, Q Grade.

Speaker #3: Then NIIF, which is the sovereign of sovereign—Government of India fund—they have launched a new fund. They have launched a new platform called Anand Grid.

Speaker #3: So, there is a lot of new foreign capital also which is chasing the transmission sector.

Speaker #5: Okay, sir. Got it. So, yeah, that's it from my side. Thank you, and all the very best.

[Analyst] (Axis Capital): Okay, sir. Got it. That's it from my side. Thank you, and all the very best.

Speaker #1: Thank you. We take the next question from the line of Harsh Muthika from SKP Securities. Please proceed.

Operator: Thank you. We take the next question from the line of Harsh Mundra from SKP Securities. Please proceed.

Speaker #6: Hi, good evening sir. Congratulations on a decent set of numbers. I just wanted to get some clarity on the polymer segment. When we look at the segment last year, we achieved more than ₹500 crore of revenue.

Harsh Mundra: Hi, good evening, sir. Congratulations on a decent set of numbers. Just wanted to get some clarity on the polymer segment. When we look at the segment, last year we achieved about more than INR 500 crores of revenue. This particular quarter has been slightly muted, but you maintained the margins for sure. Can you please give us a guidance on how the rest of the year will look like and what has driven this dip in revenue?

Harsh Motika: Hi, good evening, sir. Congratulations on a decent set of numbers. Just wanted to get some clarity on the polymer segment. When we look at the segment, last year we achieved about more than INR 500 crores of revenue. This particular quarter has been slightly muted, but you maintained the margins for sure. Can you please give us a guidance on how the rest of the year will look like and what has driven this dip in revenue?

Speaker #6: But this particular quarter has been slightly muted. But we maintained the margins for sure. So can you please give us guidance on how the rest of the year will look and what has driven this dip in revenue?

Speaker #3: So again, it's mostly due to ongoing commodity price fluctuations—what we have seen in the market. Most players have suffered in this current scenario, where trade has just been very cautious, because the commodity price movement has been very sharp on both sides—the upper side and the lower side.

Sharan Bansal: Well, again, it is mostly due to ongoing commodity price fluctuations, what we have seen in the market. Most players have suffered in this current scenario, where the trade has just been very cautious as because the commodity price movement has been very sharp on both sides, upper side and lower side. That is why I would say that trade has been cautious, and there has been some amount of destocking that has taken place. However, having said that, we are happy in the direction that the margin profile is moving in this business, and we are quite confident that for the full year, we will be able to deliver a 20% growth in top line with some improvement in margins as well.

Speaker #3: So that's why I would say that trade has been cautious in, and there has been some amount of destocking that has taken place. However, having said that, we are happy with the direction that the margin profile is moving in this business.

Speaker #3: And we are quite confident that for the full year, we will be able to deliver a 20% improvement—a 20% growth—in top line, with some improvement in margins as well.

Speaker #6: And sir, do we expect to increase the volume as well going forward, or will it mostly be driven by higher realizations?

Harsh Mundra: And sir, do we expect to increase the volume as well going forward, or will it just mostly be driven by higher realizations?

Harsh Motika: And sir, do we expect to increase the volume as well going forward, or will it just mostly be driven by higher realizations?

Speaker #3: Yeah, this will come with both volume and value.

Sharan Bansal: Yeah, this will come with both volume and value.

Speaker #6: Okay. Okay. Thank you sir.

Harsh Mundra: Okay. Thank you, sir.

Harsh Motika: Okay. Thank you, sir.

Speaker #1: Thank you. We will take the next question. From the line of Naveen Sahadeo from ICICI Securities Limited, please proceed.

Operator: Thank you. We take the next question from the line of Naveen Sahadeo from ICICI Securities Limited. Please proceed.

Speaker #5: Yeah, thank you. Thank you for the opportunity. Sir, a couple of questions. So, my first question was about the margin improvement that we have seen this year now.

Navin Sahadeo: Yeah. Thank you for the opportunity. Sir, a couple of questions. My first question was about the margin improvement that we have seen this year now. You would appreciate that this quarter was particularly known to have some cost inflation, even on the commodity side, each of the things. I just wanted to get more, if you can talk about more as to how did we manage the QOQ margin improvement. Is this more sustainable or structural?

Speaker #5: You would appreciate that this quarter was particularly known to have some cost inflation, even on the commodity side. Each of the things.

Speaker #5: So I just wanted to get more, if you can talk more about how we managed the QOQ margin improvement as well.

Speaker #5: And is this more sustainable or structural?

Speaker #3: Yes. Yes, sir. Absolutely, Naveen. So, as I have mentioned before, our long-term aspirational margins are 12% for the company. So, we are happy that we are moving in that direction and are on the right track.

Sharan Bansal: Yes. Yes, absolutely, Naveen. As we have mentioned before, our long-term aspirational margins are 12% for the company. We are happy that we are moving towards that direction on the right track. We have also benefited from some of our legacy contracts now getting over, and now hardly any of those are left in our order book, which were low margin. Definitely, that is why. The new contracts are obviously coming with a better margin profile. Apart from that, obviously, our constant effort on operational leverage, et cetera, is also giving us results. In regard to commodity prices, as I mentioned earlier, we have a combination of both firm price and variable price contracts. Even on the firm price contracts, we do deploy a number of ways, number of measures to secure ourselves on the raw material side.

Speaker #3: We have also benefited from some of our legacy contracts now getting over. And now you know hardly any of those are left in our order book which were low margin.

Speaker #3: So definitely, that's why, and the new contracts are obviously either coming with better quality or a better margin profile. Apart from that, obviously, our constant efforts on operational leverage, etcetera, are also giving us results.

Speaker #3: In regard to commodity prices, as I mentioned earlier, we have a combination of both firm price and variable price contracts.

Speaker #3: And even on the firm price contracts, we do deploy a number of ways, you know, a number of measures to secure ourselves on the raw material side.

Speaker #3: So, I would say that due to all these efforts, we have been able to deal with the commodity price fluctuations that are taking place in the market.

Sharan Bansal: I would say due to all these efforts, only we have dealt with these commodity price fluctuations that are taking place in the market and yet delivering a margin expansion. That definitely will be structural, and we will consistently move towards our long-term aspirational margin of 12%.

Speaker #3: And yet delivering margin expansion. So that definitely will be structural, and we will consistently move towards our long-term aspirational margin of 12%.

Speaker #5: Understood. And in the previous participant's question, did you say we are aspiring for 20% revenue growth this year? Because that would be like increasing our guidance from 15% in the past.

Navin Sahadeo: Understood. In the previous participant's question, did you say we are aspiring for 20% revenue growth this year? That would be like increasing our guidance from 15% in the past.

Speaker #3: No, I mentioned in the polymer segment, 20%. Overall, for the company, we are expecting 15% revenue growth only.

Sharan Bansal: No, I mentioned in the polymer segment, 20%. Overall for the company, we are expecting 15% revenue growth only.

Speaker #5: Sure. And sir, just one more question—am I slipping? Is there a way, or are we, you know, is the scope of work seeing any change?

Navin Sahadeo: Sure. Sir, just one more question, if I might slip in. Is the scope of work seeing any change? Because now in the past two quarters, the infra segment is seeing a significant jump, whereas our engineering main segment is a little soft in this quarter. Is there a difference in the scope of work that we are doing for the client or new orders or some new projects we would have received in infra, which is driving this?

Speaker #5: Because now, in the past two quarters, the infra segment is seeing a significant jump, whereas, as you know, our engineering main segment is a little soft in this quarter.

Speaker #5: So, is there a difference in the scope of work that we are doing for the client, or are there new orders or some new, you know, projects we would have received in infra which is driving this?

Speaker #3: No, there's nothing different. What is happening is, you see, the engineering segment mainly is suffering. What I mentioned earlier was of a lower order intake last year.

Sharan Bansal: No, there is nothing different. What is happening is, the engineering segment mainly is suffering. What I mentioned earlier was of a lower order intake last year, both on domestic and particularly on the export side. Bulk of our new capacity that we have built up, last year also the 75,000 ton capacity which we built up is primarily focused on exports. Export order intake was poor last year. Even right now, this year, there is still the disruption is there in terms of high shipping prices, where customers are delaying the lifting because they do not want to pay the additional shipping charges right now. They are constantly deferring the shipments also. I would say that these are temporary in nature. Long-term, the outlook is very positive.

Speaker #3: Both on the domestic side and particularly on the export side, the bulk of our new capacity that we built up last year—also, the 75,000-ton capacity which we built up—is primarily focused on exports.

Speaker #3: And export order intake was poor last year. Even right now this year, the disruption is still there in terms of high shipping prices, where customers are delaying the listing because they don't want to pay the additional shipping charges right now.

Speaker #3: So, they are constantly deferring the shipments also. So I would say that these are temporary in nature. Long-term, the outlook is very, very positive.

Speaker #3: As I mentioned, we are guiding for a 50% jump in export order inflow this year compared to last year. So, certainly, the engineering slowdown is temporary for this year.

Sharan Bansal: As I mentioned, we are guiding for a 50% jump in export order inflow this year compared to last year. Certainly the engineering slowdown is temporary for this year and not structural at all. Our new capacity, which are going to come up very soon, the capacity is going to go up to 450,000 tons. With the normalization of shipping rates, I would say as these new orders coming in, certainly we will see a bounce back in engineering revenue from next year also.

Speaker #3: And not structural at all. Our new capacity which are going to come up you know in the in very soon the capacity is going to go up to 450,000 tons.

Speaker #3: And with the normalization of shipping rates, I would say these new orders coming in will certainly result in a bounce back in engineering revenue from next year also.

Speaker #5: Understood. Thank you sir.

Navin Sahadeo: Understood. Thank you, sir.

Operator: Thank you. We take the next question from the line of Abhijeet Singh from Systematix. Please proceed.

Speaker #1: We take the next question from the line of Abhijit Singh from Systematics. Please proceed.

Speaker #5: Thank you for the opportunity. Actually, Naveen sir has asked almost all the questions that I wanted to ask. But sir, there is one thing I just wanted some more clarity on.

Abhijeet Singh: Thank you for the opportunity. Naveen sir has asked almost all the questions I wanted to ask. But sir, one thing I just wanted some more clarity on. So exports have declined in the revenue mix. As far as we understand, both steel and aluminum have risen about 10% for steel and about 30% to 40% for aluminum in Q1, on a year-over-year basis. Also across the industry, we have seen gross margin, which is essentially reflecting the raw material cost as a percentage of revenue, has compressed sharply year-over-year in Q1 and Q2. On the contrary, we have done an exceptional job wherein even the export lever wasn't there in the mix, so exports were down, and therefore, that could pull the gross margins down. What is driving this kind of margin sustenance? It is very impressive.

Speaker #5: So exports have declined in the revenue mix. Right? And as far as we understand you know both steel and aluminium have risen about. And for steel and about 30 40% for aluminium in Q1.

Speaker #5: You know, on a year-on-year basis. And also, across the industry, we have seen gross margin, which is essentially reflecting the raw material cost as a percentage of revenue.

Speaker #5: It has compressed sharply, with "why" and "why" in Q1 and Q2. And on the contrary, we have done an exceptional job, wherein even the export lever wasn't there in the mix.

Speaker #5: So exports were down, and therefore that could pull the gross margins down. So what is, I mean, driving this kind of, you know, margin sustenance, which is very impressive?

Abhijeet Singh: In Q2, Q3, if these cost pressures continue, will we see a similar margin range, about 10.5% to 11%?

Speaker #5: And in Q2, Q3, if these cost pressures continue, do we see a similar margin range in our 10.5% to 11%?

Abhijeet Singh: In Q2, Q3, if these cost pressures continue, will we see a similar margin range, about 10.5% to 11%?

Speaker #3: Right. So as I was mentioning to Naveen earlier also see our firstly we had the burden of some legacy contracts you know till last year also which are now almost negligible in the order book.

Sharan Bansal: Well, as I was mentioning to Naveen earlier also, firstly, we had the burden of some legacy contracts till last year also, which are now almost negligible in the order book. That also has contributed to the revenue or to the margins going up. Secondly, we have maintained in the past that we are not that impacted by the commodity price movements because we have a combination of firm price and variable price contracts. Variable price contracts anyway get adjusted on a month-to-month basis based on the commodity prices. As far as the firm price contracts are concerned, they already have that buffer built in to take care of the prices increase. Plus, we also deploy a combination of other measures like increasing inventory and also doing some part hedging for some materials.

Speaker #3: So, that also has contributed to the revenue or to the margins going up. Secondly, you know, we have maintained in the past that, see, we are not that impacted by the commodity price movement because we have a combination of firm price and variable price contracts.

Speaker #3: And see, variable price contracts anyway get adjusted on a month-to-month basis based on the commodity prices. And as far as the firm price contracts are concerned, they already have that buffer built in to take care of the price increases.

Speaker #3: And plus, we also deploy a combination of other measures, like increasing inventory and also, you know, doing some part hedging for some materials. So that's why we are able to manage and not let the commodity prices impact us.

Sharan Bansal: So that's why we are able to manage and not let the commodity prices impact. However, to answer also your statement about steel and aluminum, steel, which is our major raw material, that did see some increase earlier in the quarter. But by the month of May, we saw the steel prices had normalized to the pre-February or January levels quite a bit. So now they are completely back to the pre-February level. So in steel, there was only a temporary spike. Even aluminum prices have rationed to a quite extent. But like I said, we do deploy a number of measures, including increasing inventory and hedging, et cetera. So we do not expect that commodity prices are going to be really a big concern for us to our margins.

Speaker #3: However, to answer also your statement about steel and aluminium—see, steel, which is our major raw material, did see some increase, you know, earlier in the quarter.

Speaker #3: But by the month of May, we saw the steel prices had normalized to the pre-February or January levels quite a bit. So now, they are completely back to the, you know, pre-February level.

Speaker #3: So, in steel there was only a temporary spike. Even aluminium prices have rationalized to quite an extent. But like I said, we do deploy a number of measures including increasing inventory and hedging, etc.

Speaker #3: So, we don't expect that commodity prices are going to be a big concern for our margins.

Speaker #5: Understood, sir. And sir, the export order inflow growth that you are expecting for the current financial year, this would primarily come from the USA and Australia?

Abhijeet Singh: Understood, sir. And sir, this export order inflow growth that you are expecting for the current financial year, this would primarily come from USA and Australia. Is that correct?

Speaker #5: Is that correct?

Speaker #3: North America and Australia are going to be our main markets. Europe is still going to take some time because we are yet to get our approvals, etc.

Sharan Bansal: North America and Australia are going to be our main markets. Europe is still going to take some time because we are yet to get our approvals, et cetera, in place. So we are a bit ahead in these two markets, North America and Australia. So for this year, yes, certainly we do expect most of our inflows in developed countries to come from here. Of course, our traditional markets of Middle East, Africa, and Latin America, we are expecting substantial flows from there also.

Speaker #3: in place. So we are a bit ahead in these two markets, North America and Australia. So for this year, yes, certainly we do expect most of our inflows in developed countries to come from here.

Speaker #3: Of course, from our traditional markets of the Middle East, Africa, and Latin America, we are expecting substantial flows as well.

Speaker #5: Right. Because I think for folia, we are maybe targeting about ₹1,100 crore of inflow from exports, around that number, based on last year's export numbers.

Abhijeet Singh: Right. Because I think for the full year, we are maybe targeting about INR 1,100 crores of inflow from exports around that number.

Sharan Bansal: Correct.

Abhijeet Singh: Based on the last year export number, yes.

Speaker #5: Yeah.

Speaker #3: Absolutely.

Sharan Bansal: Absolutely.

Speaker #5: So, and of course, this is also coming from the fact that we've been thinking of increasing our export mix to 50%, and half of that would come from developed markets.

Abhijeet Singh: This is also coming from the fact that we have been thinking of increasing our exports mix to 50%, and half of that would come from developed markets and half from the other markets.

Speaker #5: And half from the other markets. So, I mean, we are on track.

Sharan Bansal: Correct.

Abhijeet Singh: We are on track.

Speaker #3: Correct. We are on track for that. Yes.

Sharan Bansal: We are on track for that, yes.

Speaker #5: Right, right. Amazing, sir. And sir, lastly, on infra projects—what is the project that we are executing right now? This ₹250 crore revenue that you've got for the two quarters.

Abhijeet Singh: Right. Amazing, sir. Lastly, infra projects. What is the project that we are executing right now, this INR 250 crore revenue that we have got for the two quarters?

Speaker #3: This is we do we do infra projects in India only. We don't do any EPC project outside of India. So all of these projects are the transmission projects which have we have one under the from various TBCB developers.

Sharan Bansal: We do infra projects in India only. We do not do any EPC project outside of India. All of these projects are the transmission projects which we have won from various TBCB developers.

Speaker #5: Right, right. So EPC—you know, these are the EPC projects and the civil portion, the non-product portion of the EPC projects, right? That you book under infra.

Abhijeet Singh: Right. These are the EPC projects and the civil portion, non-product portion of the EPC projects, that you book under infra.

Speaker #3: The services. The services portion. Correct.

Sharan Bansal: The services portion. Correct.

Speaker #5: All right, all right. Thank you, sir. I'll get back in the queue.

Abhijeet Singh: All right. So thank you, sir. I will get back in queue.

Speaker #3: Surely.

Sharan Bansal: Surely.

Speaker #1: Thank you. We will take the next question from the line of Vasanth Bansal from NBG Investment. Please proceed.

Operator: Thank you. We take the next question from the line of Basant Bansal from NVG Investment. Please proceed.

Speaker #2: Yeah, good evening, sir. I have three questions on the P&L. The first one is about the labor, stores, and other project expenses, which have increased from ₹122 crores to ₹195 crores.

Basant Bansal: Yeah. Good evening, sir. I have three questions on the P&L. The one is about the labor, stores, and other project expenses, which has increased from INR 122 crore to INR 195 crore. So if you can throw some light on that. Similarly, the employee cost has also increased from INR 55 crore to around INR 71 crore. So it will be helpful if you can also throw some light on that. Lastly, on the other expenses, which has increased from INR 117 crore to INR 129 crore.

Speaker #2: So, if you can throw some light on that. Similarly, the employee cost has also increased from ₹55 crores to around ₹71 crores. So, it will be helpful if you can also throw some light on that.

Speaker #2: And lastly, on the other expenses, which have increased from ₹117 crores to ₹129 crores.

Speaker #3: Sorry, the second and third aspect—the first, okay, the first one was the labor and stores. The second was employee, and the third one was?

Sharan Bansal: Sorry, the second and third aspect.

Basant Bansal: Labor and stores.

Sharan Bansal: The first-

Basant Bansal: benefits.

Sharan Bansal: Okay. The first one was the labor and stores, the second was employee, and the third one was?

Speaker #2: Other expenses.

Basant Bansal: Other expenses.

Speaker #3: The other expenses. Okay, sure. Okay, just a minute, please. Yes. Can you hear me?

Sharan Bansal: The other expenses. Okay, sure. Just a minute, please. Yes. Can you hear me?

Speaker #2: Yeah. Yeah.

Basant Bansal: Yeah.

Speaker #3: Okay, so sir, the labor store and other project expenses—these are directly linked to the EPC site. As the EPC revenue has grown, that's why we see an increase in these expenses, which are primarily site related.

Sharan Bansal: Okay. So sir, the labor store and other project expenses, these are directly linked to the EPC site as the EPC revenue has grown. So that's why we see an increase in these expenses, which are primarily site-related. The employee cost, you see, it is in line with the March quarter. March quarter also, the cost was INR 69.6 crores, and in this quarter it is INR 75 crores. So it is not much of an increase on that front. With regard to the other expenses, see, these always have a varying impact because of the kind of contracts which we are executing. In many cases, when we are executing CIF or DDP or DAP contracts, then the export freight also comes into other expense, and the export, the logistics cost also goes into the revenue. So honestly, this will vary from quarter to quarter basis.

Speaker #3: The employee cost you see is in line with the March quarter. In the March quarter, the cost was ₹69.6 crores, and in this quarter it is ₹71 crores.

Speaker #3: So it is not much of an increase on that front. And with regard to the other expenses, see, these always have a varying impact because of the kind of contracts which we are executing.

Speaker #3: In many cases, when we are executing CIF, DDP, or DAP contracts, the export freight also comes into other expenses. And the export logistics cost also goes into the revenue.

Speaker #3: So honestly this will vary from you know on quarter to quarter basis. You will have to it will it will not you will not be able to draw any particular trend from the other expenses.

Sharan Bansal: You will not be able to draw any particular trend from the other expenses.

Speaker #2: Okay. And so, coming back to this project expenses, I understand from your explanation that it is variable in nature. So, is the revenue—and is it in proportion to the increase in the revenue?

Basant Bansal: Okay. So coming back to this project expenses, I understand from your explanation that it is variable in nature. So is it in proportion to increase in the revenue?

Speaker #3: Increase in infra revenue. Yes.

Sharan Bansal: Increase in infra revenue, yes.

Speaker #2: Yes, infra revenue. Yes, obviously, your EPC revenue.

Basant Bansal: Yes. Infra revenue. Yes, obviously. Your EPC revenue.

Speaker #3: Sorry. This is a combination not just linked to infra, but also includes our factory labor, stores, and other expenses as well. So, it's a combination of that.

Sharan Bansal: Sorry, Basant, this is a combination of not just only linked to infra, but also this is our factory labor stores and other expenses also. So it is a combination of that. Because infra revenue has increased, so maybe there is a heavier increase here compared to other quarters.

Speaker #3: But because infra revenue has increased, maybe there's a heavier increase here compared to all other quarters.

Speaker #2: Okay, okay. And for the second question, Mr. Vasanth, I would request—

Basant Bansal: Okay. The second question.

Operator: Mr. Basant, I would request you to join back the queue.

Speaker #1: you to join back the queue.

Speaker #2: Okay. Okay. Thank you. Thank you.

Basant Bansal: Okay. Thank you.

Speaker #1: Thank you. We take the next question from the line of Vanshita Amlani. And, Vanshita, if you are an investor, please proceed. So, the revenue growth— But your voice is coming a bit muffled.

Operator: Thank you. We will take the next question from the line of Vanshita Kamlani, an individual investor. Please proceed.

Vanshita Kamlani: As per the new capacity expansion, so will it affect the revenue growth of?

Operator: Sorry to interrupt, ma'am, but your voice is coming a bit muffled. Could you please fix that?

Speaker #1: Could you please fix that?

Speaker #2: Yes.

Vanshita Kamlani: Yes. Is it clear now?

Sharan Bansal: If overall is clear, ma'am, if you can just speak a little loudly, we will be able to understand.

Speaker #3: It's more or less clear, ma'am. If you could just speak a little louder, we'll be able to understand.

Speaker #2: Oh, yes. And there is a dealing capacity expansion. So, will it affect the revenue growth guidance of 15%?

Vanshita Kamlani: Yes. As there is a delay in capacity expansion, will it affect the revenue growth of guided 15%?

Speaker #3: No, actually there's only a few months' deferment in the capacity expansion. So we are going to be commissioning by the end of Q2.

Sharan Bansal: No, actually, there's only a few months deferment in the capacity expansion. We are going to be commissioning by the end of Q2. Honestly, we don't see any impact on our overall target of 15% revenue growth this year.

Speaker #3: So honestly, we don’t see any impact on our overall, you know, target of 15% revenue growth this year.

Vanshita Kamlani: If you can give any estimate of the amount that will be used to repay the debt from the fund that is issued from QIP.

Speaker #2: And if you can give any estimate of the amount that will be used to repay the debt from the funds that are used from the QIP.

Vanshita Kamlani: If you can give any estimate of the amount that will be used to repay the debt from the fund that is issued from QIP.

Speaker #3: Yeah. As of now, see, the entire proceeds we have used for debt repayment only. And the idea is to strengthen the balance sheet and, obviously, you know, provide enough ammunition to the company for future capex.

Sharan Bansal: Yeah. As of now, see, the entire proceeds, we have used for debt repayment only. The idea is to strengthen the balance sheet, obviously provide enough ammunition to the company for future CapEx.

Speaker #2: Okay. And as you previously said, the interest cost will be around 3 to 3.5% of revenue.

Vanshita Kamlani: Okay. As you previously said that, interest cost will be around 3% to 3.5% of revenue.

Speaker #3: Correct. So now we will see some further improvement from that because of the fundraise.

Sharan Bansal: Correct. Now we will see some further improvement from that because of the fund raise.

Speaker #2: Yes, because if we calculate for FY27, it comes to 220, which is currently the expense. So, will it reduce as a percentage in terms of revenue?

Vanshita Kamlani: Yes, because if we calculate for FY27, it comes to 220, which is currently the expense. Will it reduce as a percentage of terms of revenue?

Speaker #3: Yeah, yeah. I think, like I mentioned to the previous caller, we are expecting that after the fundraise, this number should come anywhere between 3.2% to 3.5% of revenue.

Sharan Bansal: Yeah. I think, like I mentioned to the previous caller, we are expecting that after the fund raise, this number should come anywhere between 3.2% to 3.5% of revenue.

Speaker #2: Okay. Thank you.

Vanshita Kamlani: Okay. Thank you.

Speaker #1: Thank you. We will take the next question from the line of Deepam Gala, an individual investor. Please proceed.

Operator: Thank you. We will take the next question from the line of Deepam Gala from an individual investor. Please proceed.

Speaker #4: Hi. Congratulations on a good set of numbers. I just wanted to know the order book breakup between EPC and the engineering product segment. Hello.

Deepam Gala: Hi. Congratulations on a good set of numbers. I just wanted to know the order book breakup between EPC and the engineering products segment. Hello?

Speaker #3: Just a minute please. Yeah.

Sharan Bansal: Just a minute, please. Yeah.

Speaker #4: Yes.

Deepam Gala: Yeah.

Speaker #3: Right. So out of the total order book between 9200. Out of the total order book of 9200 you can assume about 1800 crores is infra revenue order book out of this.

Sharan Bansal: Right. Out of the total order book, which is 9,200, am I right?

Deepam Gala: 9,200.

Sharan Bansal: Out of the total order book of INR 9,200 crore, you can assume about INR 1,800 crore is infra revenue order book out of this.

Speaker #4: That pertains only to TND, right?

Deepam Gala: That pertains only to T&D, right?

Speaker #3: That pertains mostly to TND, and some portion to telecom.

Sharan Bansal: That pertains mostly in T&D and some portion in telecom.

Speaker #4: Any percentage you would be able to give for that?

Deepam Gala: Any percentage would you be able to give for that?

Sharan Bansal: I would say about 75/25.

Speaker #3: I would say about 75-25.

Speaker #4: Okay, works. And for order inflow, is it possible to give the same breakup?

Deepam Gala: Okay, works. For order inflow, is it possible to give the same breakup?

Speaker #3: The order inflow is 95% TND. The order inflow this quarter, you are paying.

Sharan Bansal: The order inflow,

Deepam Gala: 90% would be T&D.

Sharan Bansal: Order inflow is 95% T&D. The order inflow of this quarter you are saying?

Speaker #4: Yeah. Yeah.

Deepam Gala: Yeah.

Speaker #3: Yeah, yeah. This quarter, ₹1,600 crores is almost all TND.

Sharan Bansal: Yeah. This quarter INR 1,600 crores is almost all T&D.

Speaker #4: All TND. EPC and non-EPC, any breakup?

Deepam Gala: All T&D. EPC and non-EPC, any breakup?

Sharan Bansal: See, you may basically assume about 25% of the overall order to be infra-related.

Speaker #3: So, you may basically assume about 25% of the overall order to be infrastructure-related.

Speaker #4: 25% to be?

Deepam Gala: 25% to be?

Speaker #3: Twenty-five percent for the infra portion and the balance seventy-five percent for the engineering portion.

Sharan Bansal: 25% for the infra portion and the balance 75% for the engineering portion.

Speaker #4: Okay, okay. Got it. Thank you.

Deepam Gala: Okay. Got it. Thank you.

Speaker #1: Thank you. We will take the next question from the line of Naveen Sahadeo from ICICI Securities Limited. Please proceed.

Operator: Thank you. We take the next question from the line of Naveen Sahadeo from ICICI Securities Limited. Please proceed.

Speaker #4: Yeah. Thank you. Thank you for the opportunity. Sir, if I missed it, sorry, but I just wanted to check: what is the order inflow guidance for FY27?

Navin Sahadeo: Yeah, thank you. Thank you for the opportunity. Sir, if I missed it, sorry, but just wanted to check, what is the order inflow guidance for FY27?

Speaker #3: FY27, Naveen, I think you know we should be able to do ₹7,000 crores plus. For this year, ₹1,500 we've already got.

Sharan Bansal: FY27, Naveen, I think, we should be able to do INR 7,000 crores plus for this year. INR 1,500 we have already got, so we are well on track. But I think for the full year, INR 7,000 should be very much possible, and that should take us to a closing order book of INR 10,000 crores plus.

Speaker #3: So, we are well on track. But I think, for the full year, 7,000 should be very much possible. And that should take us to a closing order book of ₹10,000 crore plus.

Speaker #4: Great. And, in this ₹7,000 crore inflow, how much of the export orders are you budgeting? Is it about ₹1,000 crore, or how should one look at it?

Navin Sahadeo: Great. In this INR 7,000 crore inflow, how much exports orders are you budgeting? Is it about INR 1,000 crore or how should one look at it?

Speaker #3: About 1,100. About 1,100 crores. As I mentioned, that's a 50% jump over last year.

Sharan Bansal: About INR 1,100 crore. As I mentioned, a 50% jump over last year.

Speaker #4: Right. Exactly. So if then the follow up question on this is if the vision is to like you know be a significant export oriented player how would you now peg because you also mentioned about starting the US operations in this particular year to float start the US entity.

Navin Sahadeo: Right. Exactly. The follow-up question on this is, if the vision is to be a significant export-oriented player, how would you now peg, because you also mentioned about starting the US operations in this particular year to start the US entity. So how should one broadly look at export as milestones, let's say, in the journey from current 9% to, let's say, a 40% or a 50%? Would it be fair to assume 10% increase each year, or would it be more staggered? How should one look at it?

Speaker #4: So how should one broadly look at export as milestones, let's say, in the journey from the current 9% to, let's say, a 40 or 50%?

Speaker #4: Would it be fair to assume a 10–10% increase each year, or would it be more staggered? How should one look at it?

Sharan Bansal: It is possible. See, we will go wherever we get a combination of margins as well as execution visibility. See, what happens is, many times some projects can, although they may come into order book, but the execution cycle can be very long. So, we will have to then, not necessarily that all order inflows translate into revenue execution on an immediate basis. So I think we will have to adopt a combination of this. And definitely, like I said, this year with the increasing of exports, if we are able to achieve this, that translates to about 15% of the total inflows coming from exports. By next year, certainly we can expect anywhere between 20% to 25% on an higher order inflow target.

Speaker #3: It's possible. See we will go where about you know we get a combination of margins as well as execution visibility. See what happens is many times you know some projects can although they may come into order book but the execution cycle can be very very long.

Speaker #3: So, you know, we will have to then note that not necessarily all order inflows translate into revenue execution on an immediate basis. So, I think we'll have to adopt a combination of this, and definitely, like I said, this year with the increase in exports, if we are able to achieve this, that translates to about 15% of the total inflows coming from exports.

Speaker #3: By next year, certainly we can expect anywhere between 20% to 25% on a higher order inflow target. So, I think that we are on the right track, and we are also happy that orders are now flowing in from developed countries, which is our main target.

Sharan Bansal: I think that we are on the right track, and we are also happy that orders are now flowing in from developed countries, which is our main target. So I think, look, hard to put a number to it, that okay, what exactly will happen next year or the year after that. But directionally, we are in the right direction, just like we are directionally in the right direction in terms of margin. So even on the export inflow, we are in the right direction. And long-term aspirational, just like our margins aspiration is 12%, our export order inflow is also targeted at 50% of our overall order inflow. And we will get there. I cannot say by when, but I think definitely we are on the right track.

Speaker #3: So I think it's hard to put a number to it, Kioke—what exactly, you know, will happen next year or the year after that.

Speaker #3: But directionally, we are in the right direction, just like we are directionally in the right direction in terms of margins. So, even in the export inflow, we are in the right direction.

Speaker #3: And long-term aspirational, just like our margins aspiration is 12%, our export order inflow is also targeted at 50% of our overall order inflow.

Speaker #3: And we'll get there in a, you know—I think, I can't say by when, but I think definitely we are on the right track.

Speaker #4: Appreciate it. I then wanted to understand if one should look at this 15% revenue guidance also as a, you know, very steady compounding kind of number year on year.

Navin Sahadeo: Appreciate. I then wanted to understand if one should look at this 15% revenue guidance also as a very steady compounding kind of a number year on year, or you would want to revisit it closer to once we have more orders finalized. How should one look at revenue growth vision for the company?

Speaker #4: Or would you want to revisit it closer to when we have more orders finalized? How should one look at the revenue growth vision for the company?

Speaker #3: No I think definitely you know with the increasing increasing order inflow of this year we can potentially target you know a higher revenue guide revenue growth of next year.

Sharan Bansal: No, I think definitely, with the increasing order inflow of this year, we can potentially target a higher revenue growth of next year. I think this year, revenue guidance is constrained by the lower order intakes of last year. So now with our increasing capacity and better order inflow both in domestic and export markets, we can target higher revenue guidance for next year.

Speaker #3: I mean this year's revenue guidance is constrained by the lower order intakes of last year. So, I'd say that now, with our increasing capacity and better order inflows both in domestic and export markets, we can target higher revenue guidance for next year.

Speaker #4: Understood. And lastly if you could just help us understand how much is the legacy order drag on the order book as of now very broadly and then by what time or by what time frame within what time frame would it get executed so as to know that thereafter the margins could actually see better improvement on new orders?

Navin Sahadeo: Understood. Lastly, if you could just help us understand how much is the legacy order drag on the order book as of now, very broadly, and then within what time frame would it get executed so as to know that thereafter, the margins could actually see better improvement on new orders?

Speaker #3: Yeah, the legacy orders are less than 5% now, and I think by and large they'll be over this year.

Sharan Bansal: Yeah. The legacy orders are less than 5% now, and I think by and large, they will be over this year.

Speaker #4: Understood, sir. Thank you so much.

Navin Sahadeo: Understood, sir. Thank you so much.

Speaker #1: Thank you. We will take the next question from the line of Basant Bansal from NBG Investment. Please proceed.

Operator: Thank you. We take the next question from the line of Basant Bansal from NVG Investment. Please proceed.

Speaker #5: Yeah. Fazil ji, thank you for the opportunity. I just have one, you know, question from a metro perspective: are there any challenges or concerns that keep you worried?

Basant Bansal: Yeah. Sharan ji, thank you for the opportunity. I just have one question from macro perspective. Are there any challenges or concern that keeps you worried?

Speaker #3: Good question sir. I think on the challenges side like with any sector where there are a lot of tailwinds and there is a lot of demand I would say the biggest challenge is quality manpower especially in the technical side both on the you know manufacturing as well as the project side.

Sharan Bansal: Good question, sir. I think, on the challenges side, like with any sector where there are a lot of tailwinds and there is a lot of demand, I would say the biggest challenge is quality manpower, especially in the technical side, both on the manufacturing as well as the project side. Definitely because there is so much of a spurt in demand that has taken place. So recruiting and retaining quality manpower is probably the biggest challenge and which keeps us awake at night. Other than that, honestly, there isn't really much challenges in the sector.

Speaker #3: And definitely, because there has been so much of a spurt in demand that has taken place, recruiting and retaining quality manpower is probably the biggest challenge—and it's what keeps us awake at night.

Speaker #3: So, other than that, honestly, there really aren't many challenges in the sector.

Speaker #5: Understood. Understood. So, how do you manage that aspect?

Basant Bansal: Understood. So how do you manage that aspect?

Speaker #3: We are learning every day, but I think we have a robust HR team, and they do a good job in making sure that all the manufacturing additional requirements and the site additional requirements are constantly met.

Sharan Bansal: We are learning every day. But I think we have a robust HR team, and they do a good job in making sure that all the manufacturing additional requirements and the site additional requirements are constantly met, and we are able to fulfill our commitments to the customers. And of course, then we also have a very robust system of taking in fresh graduate trainees. Every year, we take in close to about 200 plus or close to about 250 graduate trainees from very good institutions. And we have a very robust training program also. So I think that is what I think any good corporate would do, and we are also following the same.

Speaker #3: And we are able to fulfill our commitments to the customers, and of course, then we also have a very robust system of taking in fresh graduate trainees.

Speaker #3: Every year we take in close to about 200, or you know, close to about 250 graduate trainees from very good institutions. And we have a very robust training program also.

Speaker #3: So, I think that is what any good corporate would do, and we are also following the same.

Speaker #5: Yes, understood. Understood, sir. Thank you very much.

Basant Bansal: Yeah. Understood, sir. Thank you very much.

Speaker #1: Thank you. We will take the next question from the line of Naveen Sahadeo from ICI Securities Limited. Please proceed.

Operator: Thank you. We take the next question from the line of Navin Sahadeo from ICICI Securities Limited. Please proceed.

Speaker #4: Yeah. Thank you. And just one last question sir from me. On the visibility of the short term orders I believe if I'm not wrong this quarter we saw short term orders of almost about like you know 233 odd crore just arithmetic that I'm doing.

Navin Sahadeo: Yeah. Thank you. And just one last question, sir, from me. On the visibility of these short-term orders, I believe, if I am not wrong, this quarter, we saw short-term orders of almost about 233 odd crore, just the arithmetic that I am doing. So wanted to understand that, will it be more like a steady state? Can we see this kind of short orders, or they can be as unpredictable as it gets?

Speaker #4: So, I wanted to understand: would it be more like a steady state? Can we see this kind of short orders, or can they be as unpredictable as it gets?

Speaker #3: In terms of short term orders see they are we do get short term orders every quarter. However short term orders right now are a challenge in terms of export markets at least.

Sharan Bansal: In terms of short-term orders, we do get short-term orders every quarter. However, short-term orders right now are a challenge in terms of export markets, at least, because like I said, export customers, even the ones where we have orders right now, they are deferring shipments because they do not want to bear the increased shipping cost. I think with a lot of these projects which are getting finalized, they will lead to a spurt in short-term orders both on the domestic and export side because a lot of players will be challenged for capacity towards the later part of the year.

Speaker #3: Because like I said export customers even the ones you know where we have orders right now they are deferring shipments because they don't want to bear the increased shipping costs.

Speaker #3: So I think, you know, with a lot of these projects which are getting finalized, they will lead to a spurt in short-term orders, both on the domestic and export side, because a lot of players will be challenged for capacity towards the later part of the year.

Speaker #4: Thank you sir.

Navin Sahadeo: Thank you, sir.

Operator: Thank you. As there are no further questions from the participants, I would now like to hand the conference over to the management for their closing comments. Over to you, sir.

Speaker #1: Thank you. As there are no further questions from the participants, I would now like to hand the conference over to the management for their closing comments.

Speaker #1: Over to you sir.

Speaker #3: Thank you, everyone. Looking ahead, we are confident in delivering a significantly better FY27. A multi-year growth runway lies ahead of us. With a record order book, rising capacity utilization, improving margin profile, expanding export footprint, and a structurally scalable manufacturing base, Skipper is entering a phase where growth, profitability, and return ratios are set to compound together.

Sharan Bansal: Thank you, everyone. Looking ahead, we are confident of delivering a significantly better FY27. A multi-year growth runway lies ahead of us. With a record order book, rising capacity utilization, improving margin profile, expanding export footprint, and a structurally scalable manufacturing base, Skipper Limited is entering a phase where growth, profitability, and return ratios are set to compound together. We appreciate your continued support and look forward to interact with you again in next quarter. Thank you.

Speaker #3: We appreciate your continued support and look forward to interacting with you again in the next quarter. Thank you.

Operator: Thank you. On behalf of ICICI Securities Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

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Q1 2027 Skipper Ltd Earnings Call

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