Q2 2026 Voltamp Energy SAOG Earnings Call

August 10, 2026

Mohammed Ajmal Basha: Hi, assalamualaikum. Can you hear us? Can you hear us?

Speaker #1: السلام علیکم، کیا میں کیئرہ؟ کیا میں کیئرہ؟

Speaker #2: Yes. Yes, we can.

[Analyst]: Yes, we can.

[Analyst 1]: Yes, we can.

Speaker #1: Yeah. السلام علیکم، گڈ مارننگ۔ Yeah, good morning. So today we have our investor relations meeting for H1 2026. So we are at 10 o'clock now, along with me.

Mohammed Ajmal Basha: Yeah. Assalamualaikum. Good morning. Good morning. Today we have our Investor Relationship Meeting for H1 2026. We are at 10:00 AM now. Along with me, my name is Mohammed Ajmal Basha. I am CEO for Voltamp Group. Along with me, I have Mr. Abdullah Ahmed, who is General Manager for Corporate Affairs, and Mr. Navin Kumar, who is Group Financial Controller. I have Yousuf Al Balushi, who is General Manager for Voltamp Technology. I have Manoj Deore, who is Business Development Head. Zeeshan Malbari, who is the Phone Secretary. Muhammad Shakthi, who is our Legal Officer, and Ali Husaini, who's taking care of Administration. I am going to start the Investor Relationship Meeting today for H1. Welcome you all. Go next sir. Thank you. You can see my presentation, am I right?

Speaker #1: My name is Mohammad Raznul Basha. I'm the CEO of Voltamp Group. Along with me, I have Mr. Abdullah Omar, who is the General Manager for Corporate Affairs.

Speaker #1: Mr. Naveen Kumar, who is Group Financial Controller. I have Yusuf Baluchi, who is General Manager for Voltamp Technology. I have Manoj Devra, who is Business Development Head.

Speaker #1: Dr. Manpreet, who is the Board Secretary; Mohammad Shaksi, who is our Legal Officer and taking care of administration. I'm going to start the investor relations meeting today for H1.

Speaker #1: Welcome, you all. Go next, sir. Next. You can see my presentation, am I right? Can you see my presentation? Yeah? Okay. So, every time when we had investor relationship meetings, there was always a question: how is the market and all.

[Analyst]: Yes.

[Analyst 1]: Yes.

Mohammed Ajmal Basha: Can you see your presentation?

[Analyst]: Yes.

[Analyst 1]: Yes.

Mohammed Ajmal Basha: Yeah. Okay. Every time when we had investor relationship meeting, there was a question always, how is the market and all. I tried to put one sheet on the global market. This can give some input in terms of how is the market of transformer and all this there. If you see, globally, transformer market, currently in 2025, $68 billion. This is forecasted to grow in 2026 to $72.5 billion, and expected to increase in 10 years by $137.4 billion at a CAGR of 6.6%. If you see transformer market, power transformer, distribution transformer, and all transformer, this currently standing at almost $68 billion. When it comes to GCC market size is $3 billion. This is what we have here. Again, it is also growing at a similar pace. We expect that by 2036, in 10 years, this market size will become $6 billion US dollars.

Speaker #1: I tried to put one sheet on the global market. This can give some input in terms of how the market for transformers is and all that.

Speaker #1: If you see globally, the transformer market currently in 2025 is $68 billion. And this is forecasted to grow in 2026 to $72.5 billion.

Speaker #1: And expected to increase in 10 years by $137.4 billion at a CAGR of 6.6%. So if you see the transformer market—power transformer, distribution, oil transformer—this is currently standing at almost $68 billion.

Speaker #1: And when it comes to the GCC, the GCC market size is $3 billion. This is what we have here. Again, it is also growing at a similar pace.

Speaker #1: We expect that by 2036, in 10 years, this market size will become $6 billion US dollars. The basic drivers pushing this growth are primarily grid modernization, which is happening globally, as well as transmission and distribution expansion, and renewable integration.

Mohammed Ajmal Basha: What are the basic drivers which are pushing this growth? It's primarily grid modernization, which is happening globally, where transmission, distribution, and expansion is happening. Renewable integration. This is primarily on wind, solar, and distribution generation. Aging infrastructure. Even in GCC, we have seen transformer which are as old as 50 years old. Replacements are going on. Energy transition, grid storage, battery energy storage, resilience, and electrification is driving it. These are the key drivers which are pushing the growth for transformer business, and that's what you see on the right side, the transformer market in terms of graphical presentation. What are the segments and what are the corridors for us and what are the future catalysts? If you see, Voltamp's predominance is there in GCC, specialty markets specifically. We are the only regional facility with quality manufacturing and repair facility.

Speaker #1: This is primarily on wind, solar, and distributed generation. Then, regarding aging infrastructure, even in the GCC, we have seen transformers which are as old as 50 years.

Speaker #1: So replacements are going on, and energy transition, waste storage, battery energy storage, resilience, and electrification are driving it. So these are the key drivers which are pushing the growth for the transformer business.

Speaker #1: And that's what you see on the right side—the transformer market in terms of graphical presentation. So, what are the segments and what are the corridors for us, and what are the future candidates?

Speaker #1: If you see, Voltamp's dominance is staying in the GCC specialty market specifically. We are the only regional facility with 420 kV manufacturing and repair facility. We are pioneers in high-margin render products.

Mohammed Ajmal Basha: We are pioneering high margin renewable products. We have been into BESS, we've been into solar power projects for quite a long time. We have been into green bio-oil transformer also. These are what we are segment-wise leading. What are the growth corridors? We have Oman Vision 2040, which is working on the green hydrogen, which is working on battery storage system, which is working on multiple renewable projects. KSA Vision 2030 is there. This is a multi-billion dollar infra spending which is happening. Though it is slowed down slowly, but still it's a very big market which is there. UAE Green Agenda is there, African Electrification is there, US and Europe replacement, and cycle integration is there. These are the growth corridor which are there for us to move in. What are the future catalysts? Expansion into advanced digital substation, which we are trying to work out on.

Speaker #1: We have been into BSL, we have been into solar power projects for quite a long time. We have also been involved with green bio-oil transformers.

Speaker #1: So these are what we are segment-wise leading. What are the growth corridors? We have a one vision 2040, which is working on green hydrogen, which is working on battery storage system, which is working on multiple renewable projects.

Speaker #1: KSA Vision 2030 is there. This is a multi-billion dollar infrastructure spending which is happening. Though it has slowed down somewhat, it is still a very big market.

Speaker #1: The UAE green agenda is there. African electrification is there. US and Europe replacement cycle integration is there. These are the growth corridors which are there for us to move in.

Speaker #1: What are the future catalysts? Expansion into advanced digital substations, which we are trying to work out. New product in the market, which is our consistent focus.

Mohammed Ajmal Basha: New product empowerment, which is our consistent focus. Secure long-term contracts, which we are seeing so that we are able to have consistency and sustainability. Strategic and vertical integration to optimize margin. This is where we are trying to work towards upstream as well as downstream into our product, where we can go product which were not there, as well as suppliers which is not available in Oman. Go next. If you see what is the indicators for H1 2026, we did a revenue of OMR 35.35 million in 2023 H1 as compared to last year, we had a slight fall of -4% year-to-year last year. This is also because of the regional conflict what we had. We are trying to overcome that. When it come to gross margin, can you just remove that block which is coming? This is the one. Okay.

Speaker #1: Secure long-term contracts, which we are seeing, so that we are able to have consistency and sustainability. Strategic and vertical integration to optimize margin. This way, we are trying to work towards upstream as well as downstream into our product, where we can go to products where we were not there, as well as supply which is not available in Oman.

Speaker #1: Go next. If you see what is the indicators for H1 2026, we did a revenue of 35.35 million. In 2026 H1, as compared to last year, we had a slight fall of 0.4% year to year last year.

Speaker #1: But this is also because of the regional conflict that we had. We are trying to work on that. And when it comes to gross margin, can you just remove that block?

Speaker #1: The center row. Okay. As far as gross margin is concerned, we had 12.16 million. This is slightly lower than last year, but still a healthy 34.4% gross margin.

Mohammed Ajmal Basha: As far as gross margin is concerned, we are at OMR 12.16 million. This is slightly lower than last year, but still a healthy 34.4% gross margin. PAT is OMR 7.02 million, which is 3% higher than last year. Despite of -4% year-to-year revenue reduction, PAT has increased by 3%, which is a delta of 7%. We're still operating a very healthy PAT of 19.86%. EBITDA has also increased by 5.7% with OMR 9.26 million. Order booking has been phenomenal. Order booking has grown substantially. We are at order booking of OMR 98.7 million, which is 173% year-to-year. From last year amount we had, we have grown by 173%. Order booking is very key for any organization to see what is the future prospects. Go next. This is a graphical presentation of how order booking has been in H1 year-to-year.

Speaker #1: That is 7.02 million, which is 3% higher than last year, despite a 4% year-over-year revenue reduction. That has increased by 3%, which is a delta of 7%.

Speaker #1: We're still operating at a very healthy margin of 19.86%. EBITDA has also increased by 5.7%, to 9.26 million. Order booking has been phenomenal, with substantial growth in order intake.

Speaker #1: We are at an order booking of 98.67 million, which is 173% year to year from last year what we had. We have grown by 173%.

Speaker #1: Order booking is very key for any organization to see what the future prospects are. Go next. This is the graphical presentation of how order booking has been in H1 year to year.

Speaker #1: You can see H1 2020, almost H1 2026. Things to see here is 2026 has been 98.63 million, which has been phenomenally high as compared to last year of 36.16.

Mohammed Ajmal Basha: You can see H1 2020 almost to H1 2026. Things you see here is 2023 has a OMR 98.60 million, which has been phenomenally high as compared to last year of OMR 36.16. Also, H1 2024 has been very good, which has reflected in our growth and profitability. This year has been much more than that. When you see the distribution of this order booking, 70% is coming from export, 30% is coming from domestic. Again, year-to-year, we have been increasing. If you see H1 2021, we had Karam orders. That was the reason it was high. Subsequently, if you see 34% to 53% to 62% to 63% to 70%, we're consistently increasing our order book in the export market, and that is also resulting into our expansion of supplies and sales.

Speaker #1: Also, H1 2024 has been very, very good, which is reflected in our growth and profitability. So, this year has been much more than that.

Speaker #1: And when you see the distribution of this order booking, 70% is coming from export and 30% is coming from domestic. Again, year to year, we have been increasing.

Speaker #1: If you see H1 2021, we had Karama orders; that was the reason it was high. Subsequently, if you see 34% to 53% to 62% to 63% to 70%, we're consistently increasing our order book in the export market.

Speaker #1: And that is also resulting in our expansion of supplies and sales. When it comes to sales, we have been growing at a fast pace as compared to 2024 to 2025.

Mohammed Ajmal Basha: When it comes to sales, we have been growing at a fast pace as compared to 2024 to 2025. It has almost more than doubled 2025 to 2026. Despite these conflicts and all, we are still able to manage our requirements. Again, here also, our export sales has been 59%, domestic has been 41%. Compared to last year, it was slightly lower, primarily because some of the export order did not move in the half. When it comes to year-end, it will again catch up in terms of what is export to domestic sales. Our target is there. Our target is that our export should be reaching 65% to 70% as compared to previous years. We are on the same track, and we hope that we'll go to that again.

Speaker #1: It has been almost more than double from 2025 to 2026. Despite these regional conflicts and all, we are still able to manage our requirements. Again, here also, our export sales have been 59%.

Speaker #1: Domestic has been 41%. Compared to last year, it was slightly lower, primarily because some of the export orders did not move in the half, but when it comes to year end, it will again catch up in terms of what is export to domestic sales.

Speaker #1: Our target is there. Our target is that our exports should be reaching 65% to 70% as compared to previous years. So, we are on the same track, and we hope that we'll go to contingent.

Speaker #1: When it comes to raw material cost, we have taken a lot of decisions from 2020 to 2023, which resulted in improved raw material costs.

Mohammed Ajmal Basha: When it comes to raw material cost, we have taken lot of decisions in 2022, 2023, which resulted into improved raw material cost. Even this year, we have 57% raw material cost, 56% was last year. Despite of multiple increase in cost, including logistic cost and all, we were still able to manage this raw material cost at this level, which is primarily because of the higher value product mix what we have, design metal efficiency, procurement price optimization, and reduced metal waste. It is something which we are working very aggressively in terms of lean manufacturing principles as well as what we do. Reduce metal waste is also adding up to our reduction raw material cost. When it comes to other direct costs, it has substantially come down from 2023, and now we stand at 9%. This is again driven by lot of improvements.

Speaker #1: Even this year, we have a 57% raw material cost, which was 56% last year, despite multiple increases in costs, including logistic costs and all.

Speaker #1: We were still able to manage this raw material cost at this level, which is primarily because of the higher-value product mix that we have.

Speaker #1: Design material efficiency, procurement price optimization, and reducing metal waste—these are things we are working on very aggressively in terms of lean manufacturing principles as well as Kaizens that we do.

Speaker #1: Reducing metal waste is also adding up to our reduction in raw material cost. When it comes to other direct costs, it has substantially come down from 2023, and now we stand at 90.9%.

Speaker #1: This is again driven by a lot of improvements. E-commerce scale is one of them, as well as production efficiency. We do mark our norms versus actuals every year.

Mohammed Ajmal Basha: Economy of scale is one of them. Production efficiency. We do mark our norms versus actual every year to year. Year to year, we're improving our efficiency. We started a 15% improvement in efficiency in 2023. Now, we are at a level where 3% to 4% is what is targeted, so that we are at a fine stage. Integrated section valves are there to reduce waste. Optimization, of course, is there. Advanced planning, quick decision-making. These are the items which are there for reduction of cost. Despite of logistics shipping cost increasing because of the supply disruption, we're still able to manage our cost at this. When it comes to sales and administration costs, spirals costs and all, it is considerably reduced. It is reduced from 13% to 11%. It is a cost integration.

Speaker #1: Year to year, we're improving our efficiency. We started with a 15% improvement in efficiency in 2023. Now we are at a level where 3 to 4% is what is targeted, so that we are at a fine stage.

Speaker #1: Integrated checks and balances are there to reduce waste, so the optimization of cost is there. Advanced planning and quick decision-making—these are the items which are there.

Speaker #1: For reduction of cost, despite logistics and shipping costs increasing because of the supply description, we're still able to manage our costs at this. When it comes to sales and admin cost, finance cost, and all, it is considered reduced.

Speaker #1: It is reduced from 13% to 11%. Again, it is a cost integration. Strategically, what we decided is all our cost is coming from customers.

Mohammed Ajmal Basha: Statistically, what we decided is all our cost which is coming from customer, we are not exposing ourselves with any moving cost like transportation, tariffs, taxation, and handling, which are actually, in the current scenario, a risky part because if you're not able to de-risk it or if you're not able to mitigate it, this will come as a surprise cost. Like we supply to USA last year, tariff was a separate item. When tariff came as a surprise, we had no impact because it was covered up because of our contract. We are working on that direction. Centralization in shared service, this is also one of part where we try to reduce our administration costs, central headcount. Despite the way we are growing, we are not increasing the headcount to that extent. We are rationalizing those, and all expenses are being rationalized.

Speaker #1: We are not exposing ourselves to any moving costs like transportation, tariffs, taxation, and handling, which are actually, in the current scenario, a risky part because if you're not able to de-risk it or if you're not able to mitigate it, this will come as a surprise cost, like when we supply to the USA.

Speaker #1: Last year, tariff was a separate item, but when tariff came as a surprise, we had no impact because it was covered up because of our contract.

Speaker #1: So we are working in that direction. Centralization and shared services—this is also one of the parts where we try to reduce our administration costs and control headcount.

Speaker #1: Despite the way we are growing, we are not increasing the headcount to that extent. We are rationalizing those, and all expenses are being rationalized.

Speaker #1: So we have a very systematic way of ensuring that our expenses are monitored on a regular basis and controlled at every level. Again, as I said, in gross profit from last year to this year, we had minus 4%, but still we have a healthy gross margin at 34.4%.

Mohammed Ajmal Basha: We have a very systematic way of ensuring that our expenses are monitored on a regular basis and controlled at every level. This again, gross profit. As I said, from last year to this year, we had -4%, but still we have a healthy gross margin, 34.4%. We are running with a five-year CAGR of 44.49%, as you can see in the graph. Go next. Next. PAT is grown in five-year CAGR of 152.11%. You can see despite of all this, PAT is still continuing to grow from $6.8 million to $7.016 million. We have come a long way from there. Next. EBITDA again. EBITDA also growing at 76%. I think just put one more. Yeah, 77.99% is what our CAGR is growing for EBITDA. EBITDA has increased from $8.7 million to $9.1 million. These are the key contributors, challenges, and risk what we have.

Speaker #1: We are running with a 5-year CAGR of 44.49%, as you can see in the graph. Go next. Next. Again, package grown at a 5-year CAGR of 132.11%.

Speaker #1: You can see, despite all seasons, the package still continues to grow from 6.8 million to 7.016 million. We have come a long way from there.

Speaker #1: Next, EBITDA again. EBITDA is also growing at 76%. I will just add one more point. Yeah, 77.99% is what our CAGR is for EBITDA. Again, EBITDA has increased from 8.7 million to 9.1 million.

Speaker #1: These are the key contributors, challenges, and risks that we have. And take some time to just give a brief idea on what are the things which are there.

Mohammed Ajmal Basha: I'll take some time to just give a brief idea on what are the things which are there, growth drivers. Power transfer momentum is there. Power transfer, the demand is high in the market, because of which improved pricing we're able to get. This is one area which is dominant in the industry right now, not just at Voltamp. Globally also, regionally also, this is something which is driving the momentum. Because of it, there is a global robust order inflow. Globally the demands are there, we are able to get at right time with our customers and able to get the volume. You can see $98 million of order booking is something which is phenomenal. Which has not been there. That gives a reflection that going forward, what we have is a very strong sales and order partner. High voltage and enables.

Speaker #1: Road travels. Our transformer momentum is there. Our transformer demand is high in the market. It's because of this improved pricing we are able to get.

Speaker #1: And this is one area which is dominant in the industry right now—not just at Voltamp. Globally and regionally, this is something which is driving the momentum.

Speaker #1: Because of which there is a global, robust order inflow. We are—globally, the demands are there. So we are able to get at the right time with our customers and are able to get the volume.

Speaker #1: You can see 98 million of order booking is something which is phenomenal, which has not been there. That shows a reflection that, going forward, what we have is a very strong sales and order pattern.

Speaker #1: High voltage enables this, since we have already entered into the business—almost in 2020 we entered into the business. So we have very good references and all.

Mohammed Ajmal Basha: Since we have already entered into the business. Almost 2020, we entered into the business. We have very good references and all, and this is adding us into going into this business with a get better margins. Talent retention development is something which is very important for the organization. Retaining top talent, specifically people who have the competencies and all. Actually, what happens is, if the talents are there, it basically reduces the risk of wrong decisions. It reduces the risk of corrections, reinvention and all. We are trying to work in this direction to retain our talents, driving them continuously so that we have strong decision-making. Optimized product mix. We are very clear about what mix we have, what products we have, what generates revenues, what generates profits and all.

Speaker #1: And this is enabling us to go into this business with better margins. Talent retention and development is something which is very important for the organization.

Speaker #1: We retain top talent, specifically people who have the competencies and all. Actually, what happens is that if the talent is there, it basically reduces the risk of wrong decisions.

Speaker #1: It reduces the risk of corrections, reinvention, and all. So we are trying to work in this direction to retain our talents, driving them continuously so that we have sound decision-making.

Speaker #1: Optimized product mix. We are very clear about what mix we have, what products we have, what generates revenues, what generates profits, and all. Based on that, we are working very closely to see that we focus on those products which are more efficient and better meet customer needs.

Mohammed Ajmal Basha: Based on that, we are working very closely to see that we work on those products which are more efficient, more customer need. We are not venturing into items which are going to just increase our revenue but not the margins. We are optimizing those. Geographical expansion. We are doing 26 countries now. We are actively working on market expansion. Even this year, we have planned for two more countries. Inshallah, if we are able to do that will also expand further. These are key six growth drivers what we have right now, which we are working on, and it's going to give us what we are seeing the result today, and inshallah, going forward tomorrow. What are the headwinds for us industry-wise, logistic concerns? This has been a severe problem starting from COVID to Gaza to Iran now.

Speaker #1: We are not venturing into items that are just going to increase the revenue but not the margins, so we are optimizing those. Geographical expansion.

Speaker #1: We have already—we are doing 26 countries now. So, we are actively working on market expansion. Even this year, we have planned for two more countries.

Speaker #1: Inshallah, if we are able to do that, that will also help us expand further. These are the key six growth drivers that we have right now, which we are working on.

Speaker #1: And this is going to give us what we are seeing, the result today, and inshallah, coming forward tomorrow. What are the endpoints for us, industry-wise, logistic concern?

Speaker #1: This has been a severe problem, starting from COVID to Gaza to Iran now, and we are actually facing a lot of conditions in the port.

Mohammed Ajmal Basha: We are actually facing a lot of congestions in the port. Ports are not ready to handle it. Non-availability of vessels and all are there. We are doing a lot of actions towards mitigating this. Supply chain and demand gap is there because of surge of demand for power transformers. Critical components like distribution and tap changers, deliveries have gone to 60 to 80 weeks. We are working on how to mitigate those 60 to 80 weeks in terms of our delivery to customer, because customer require delivery like 12 months, maximum customer asks for 53 weeks. 53 weeks, if customer asks, if my component is coming in 80 weeks, then I need to do something differently. We are working on that. Intensified competition. Price competitions are there. In South Africa, there are two new companies coming in, Chinese companies coming in.

Speaker #1: Ports are not ready to handle it. Non-availability of visits and all are there. So we are doing a lot of actions towards mitigating this.

Speaker #1: The supply and demand gap is there because of a surge in demand for power transformers. Critical components like HV bushings and tap changers—deliveries have gone to 60 to 80 weeks.

Speaker #1: So we are working on how to mitigate those 60 to 80 weeks in terms of our deliveries to customers, because customers require delivery in, like, 12 months; the maximum customers ask for is 53 weeks.

Speaker #1: And 53 weeks, if customers ask for it—if my component is coming in 80 weeks, then I need to do something differently. We are working on that.

Speaker #1: Intensified competition. Price competitions are there. In South Arabia, there are two new companies coming in. Chinese companies are coming in, and then there are Chinese equipment manufacturers lobbying into large IP projects.

Mohammed Ajmal Basha: Then there are Chinese equipment manufacturers lobbying into large IP projects. These are there, we are working very closely to see how the market is moving and how to work on that. Evolving market regulation. We have regulatory changes which is happening on a regular basis. Policy shifting, GCC market, internal localization, price preference and all. We are looking very carefully on that. Oman localization framework is there, though this is being worked on a very strong manner, but what we see, still it's a long way to go. Oman is also working on price preference and mandate list. A lot of adoption is required, governance is required to ensure that the local manufacturer gets the advantage of it. These are the headwinds, what we have. How we are mitigating our risk by this?

Speaker #1: These are there. So, we are working very closely to see how the market is moving and how to work on that—evolving market regulation.

Speaker #1: We have regulatory changes which are happening on a regular basis. Policy shifts in the GCC market, internal localization, price differences, and all. So we are looking very carefully at that.

Speaker #1: The command localization framework is there. Though this is being worked on in a very strong manner, what we see is that still, it's a long way to go.

Speaker #1: Oman is also working on price differences and a mandatory list. But a lot of adoption is required. Governance is needed to ensure that the local manufacturers get the advantage of it.

Speaker #1: So these are the headwinds that we have. So how are we mitigating our risk from this? We have a business continuity focus, which is, first of all, making the company operationally resilient.

Mohammed Ajmal Basha: We have a business continuity focus, which is, first of all, making the company operationally resilient. Primarily to see that whatever difficulty you get in terms of price preference, or Chinese manufacturer coming in, or local manufacturer adding up, or supply chain problems which are there, or retention, how we strengthen our operational resilience is what we are working on a regular basis. We have our business continuity plans. We are working on it on a regular basis to see that we are able to de-risk it. Agile operation and talent repositioning, we are trying to work in a way that multiskilling is there, people are ready to move here and there. People are able to understand the teams, training and all, which is working very effectively. Advanced planning and strategic actions is something which is driven from a strategic point of view.

Speaker #1: Resilience, primarily—to see that whatever difficulty you get in terms of price difference, or Chinese manufacturers coming in, or local manufacturers adding up, or supply chain problems which are there, or retention—how we center our operation. Resilience is what we are working on a regular basis.

Speaker #1: We have our business continuity plans. We are working on them on a regular basis to ensure that we are able to de-risk them. For agile operation drivers, we are trying to work in a way that multiskilling is there.

Speaker #1: People are ready to move here and there. People are able to understand things. Training and all, which is working very effectively. Advance planning and strategic direction is something which is driven from a strategic point of view.

Speaker #1: What we do is, we have our own core team, which works on seeing things that are going to happen before they happen. Okay. And there, we take decisions like whether we need to have extra stocking, or we have to have a change of planning strategy, or we need to have a change of plan, or a change of our supply chain requirements, or something of that kind, which means it doesn't come as a surprise to us.

Mohammed Ajmal Basha: What we do is we have our own core team which works on seeing things which is going to happen before it happens. Okay. Those decisions there, we take decisions like whether we need to have extra stocking, or we have to have a change of planning strategy, or we need to have a change of plan, change of our supply chain requirement, or something of those kind, which doesn't come as a surprise to us. Those type of activities we're doing on this planning and strategic action. Scalable business model. Again, we are trying to have efficiencies and all so that we are able to add, modify, and change. Data center and clean energy pivots. This is something which is a growing area which is there. We've already been into data center projects.

Speaker #1: Those types of activities we're doing are part of our planning and strategic direction. Scalable business model. Again, we are trying to have efficiencies and all so that we are able to add, modify, and change data center, clean energy, private.

Speaker #1: This is something which is a growing area. We have already been involved in data center projects, so we are working very aggressively on AI data centers and renewable integration with end customer operators, and all, so that we are able to have a different business line available for us.

Mohammed Ajmal Basha: We are working very aggressively on AI data centers, renewable integration with the end customer, operators and all, so that we are able to have a different business line available for us. Again, portfolio expansion. We are broadening our high-value products which is there. Even as early as last month, July, we were able to secure the order of STATCOM transformers. STATCOM transformer is, again, higher technology product which is not there in this part of the world. Like if you remember last year, we added our product, shunt reactor, 400 kV. Extended technology version of shunt reactor is a STATCOM transformer. We are adding STATCOM transformer. We were able to get the order last month. We are going to deliver that also. We are going up the value chain. We're bringing products which are not available here, so that we're able to give that.

Speaker #1: Again, portfolio expansion—we are broadening our high-value products. Even as early as last month, July, we were able to secure the order of a STATCOM transformer.

Speaker #1: STATCOM transformer is, again, a higher technology product which is not there in this part of the world. Like, if you remember, last year we added our product, shunt reactor, for 400 kV; the extended technology version of shunt reactor is a STATCOM transformer.

Speaker #1: So we are adding the STATCOM transformer. We were able to get your order last month, so we are going to deliver that also. So we are going up the value chain.

Speaker #1: We’re going for products which are not available here, so that we are able to give them. So these are what we are working towards.

Mohammed Ajmal Basha: These are what we are working towards it. One more program which we are working very closely in the Voltamp is what we call it as Watenha. Watenha is a localizing program which is working for localizing products in Oman. Currently if you see, almost 56% of raw material is raw material for our product. Out of the 56%, more than 80% or 85% comes from outside. The agenda here is to get it in Oman. We identified 10 products and we run through a very long program which started in May and it's going to conclude on 12 August where we're going to have signing of partners. We identified 10 products which we are 100% buying from outside Oman and we try to work with local entities, SMEs, as well as technology partners.

Speaker #1: One more program which we are working very closely on in Voltamp is what we call Vatanha. Vatanha is a localized program which is working for localizing products in Oman.

Speaker #1: So currently, if you see, almost 56% of raw metal is used for our product, and out of this 56%, more than 80% or 85% comes from outside.

Speaker #1: The agenda here is to get it in Oman. So, we identified 10 products and we ran through a very long program. It started in May and it's going to conclude on the 12th of August, where we're going to have a signing of partners.

Speaker #1: So, we identified 10 products which we are 100% buying from outside Oman, and we tried to work with local entities, SMEs, as well as technology partners. After running through multiple programs, including having enablers' programs, workshops with the people, talking to Oman and talking to APSR, talking to Riyad, talking to many utilities—everyone has supported us in this initiative. Based on that, we were able to complete, and we are now concluding our assessment.

Mohammed Ajmal Basha: After running through multiple programs including having enablers programs, workshops with the people, talking to Oman Investor, talking to APSR, talking to Riyada, talking to many utilities. Everyone has supported us in this initiative. Based on that, we were able to complete. We are now concluding our assessment. We have identified more than 84 companies have registered for this and coming from six nations. There are more than 15 plus bidders for each opportunity. Expected investment is almost OMR 50 million and more than 100 plus jobs are there. These are items which are there, transformer tanks and all. We are already at the far end of this process. Inshallah, 12 August we have a signing ceremony. We have identified 10 companies which are going to partnering with us to invest here in Oman to build these products locally. Let's see.

Speaker #1: So, we have identified more than 84 companies that have registered for this, coming from six nations. There are more than 15 bidders for each opportunity.

Speaker #1: Expected investment is almost 50 million rial, and more than 100 jobs are there. This is the item which is there: radiator tanks and all.

Speaker #1: So we are already at the far end of this process. So, Inshallah, on the 12th of August we will have a signing ceremony. We have identified 10 companies who are going to be partnering with us to invest here in Oman to build these products locally.

Speaker #1: And let's see, this is something which is very important for all of us—for Voltamp, for Oman, for their ecosystem, for our own supply chain resilience—and we hope that this is going to be a benchmark for others as well as we continue doing it further.

Mohammed Ajmal Basha: This is something which is very important for all of us, for Voltamp, for Oman, for their ecosystem, for our own supply chain resilience. We hope that this is going to be a benchmark for others as well as we continue doing it further. That's all for today. This is the update what I have. Any questions anyone has, I'll be able to answer. Yeah, Faz.

Speaker #1: That's all for today. This is the update I have. If anyone has any questions, I'll be able to answer them. Yeah. Hi. Good morning. Good morning.

[Analyst]: Hi, good morning.

[Analyst 1]: Hi, good morning.

Mohammed Ajmal Basha: Narayana, good morning.

Speaker #1: Thank you. Just a couple of questions. You mentioned the logistical challenges in the region. Now, can you specifically talk about what you know? Because, obviously, when the market looked at the results and given the order book that you guys have been building—you know, obviously, not to take away from anything you guys have been doing, which has been a fabulous job—and the turnaround under this new management has been extremely rewarding for all shareholders.

[Analyst]: Thank you. Just a couple of questions. You mentioned the logistical challenges in the region. Can you specifically talk about what? Obviously when the market looked at the results and given the order book that you guys have been doing and obviously not to take away anything, you guys have been doing a fabulous job, the turnaround under this new management has been extremely rewarding for all shareholders. Just to appreciate, is there a slowdown in the momentum of the company, or the logistical challenges are the one that sort of led to this flat sort of YOY, at least revenue numbers? If the problems were not there in the region, if there was business as usual when it comes to the logistical side, what could have been the run rate given the order book that you're sitting on? That's my first question.

[Analyst 1]: Thank you. Just a couple of questions. You mentioned the logistical challenges in the region. Can you specifically talk about what? Obviously when the market looked at the results and given the order book that you guys have been doing and obviously not to take away anything, you guys have been doing a fabulous job, the turnaround under this new management has been extremely rewarding for all shareholders. Just to appreciate, is there a slowdown in the momentum of the company, or the logistical challenges are the one that sort of led to this flat sort of YOY, at least revenue numbers? If the problems were not there in the region, if there was business as usual when it comes to the logistical side, what could have been the run rate given the order book that you're sitting on? That's my first question.

Speaker #1: But just to appreciate is there a slowdown in the momentum of the company or the logistical challenges are the one that sort of led to this flat sort of YOY at least revenue numbers and if the problems were not there in the region if if there was business as usual when it comes to the logistical side what could have been the run rate given the order book that you're sitting on that's my first question so if you see we targeted for H1 almost 40 million plus okay so we had when you say logistical challenges there are real logistical challenges which we need to face and we need to plan on it everyone the whole world is facing it the whole world has seen it and we are not immune to that if you see we had certain shipments coming from.

Mohammed Ajmal Basha: If you see, we targeted for H1 almost OMR 40 million. Okay? When you say logistical challenges, there are real logistical challenges which we need to face and we need to plan on it. Everyone, the whole world is facing it, the whole world has seen it, and we are not immune to that. If you see, we had certain shipments coming from. I'm just giving you an example, so that you can realize what is the issue and how we are dealing with it. We have a supplier in Turkey supplying us transformer tank, which goes to UAE, which goes to DEWA as a customer. These tanks we were getting from generally to Sohar Port, Sohar Port it was coming and it was going. It started congesting because Sohar Port also was not able to handle the tanks.

Mohammed Ajmal Basha: When we shifted it to Jeddah Port, from Jeddah Port we tried for almost a month and a half, then it got congested, Jeddah Port was prioritizing only foodstuff and Saudi material. It started getting delayed. Currently, we are getting by road. Okay? I am getting transformer tank from Turkey by road to Muscat and Sohar just to see that I'm able to mitigate it. These all actions when we do it, there is a lag which is there, and that lag is what we're showing a bit of reduction in what we have seen in our sales. Otherwise, we'll be able to catch up because we also learned a lot in terms of how it's happening.

Mohammed Ajmal Basha: I had shipments staying at Sohar Port on the high seas, on the seas, Sohar Port was not ready to bring it in because they have overloaded with unloading and all. I had to wait for almost 15, 20 days just to get the shipment. It is there in the waters, I need to get it and do it. These are the things which are there. We have Salalah Port, we have Duqm Port, they have their own challenges what we have. We are seeing how to mitigate those, there are a lot of actions taken on that mitigation, and we'll see the result going forward.

[Analyst]: What has changed now? From when we read about it, there are still issues in the Hormuz and there's no free flow of vessels. From that perspective, this challenging situation is expected to remain for the remainder of the year. A follow-up is my questions on margin as well, right? One is your ability to actually ship your end product, and second is, of course, what you end up shipping and the margin impact of that. If you add up these two impacts, looks like things will remain like this at least for the foreseeable future, or are there some mitigants that you have in mind that maybe I'm not sort of able to appreciate at this stage when I ask you the question?

[Analyst 1]: What has changed now? From when we read about it, there are still issues in the Hormuz and there's no free flow of vessels. From that perspective, this challenging situation is expected to remain for the remainder of the year. A follow-up is my questions on margin as well, right? One is your ability to actually ship your end product, and second is, of course, what you end up shipping and the margin impact of that. If you add up these two impacts, looks like things will remain like this at least for the foreseeable future, or are there some mitigants that you have in mind that maybe I'm not sort of able to appreciate at this stage when I ask you the question?

Mohammed Ajmal Basha: When you ask about it, the basic thing is, you see, when you do a manufacturing planning, you have a supply chain cycle. Okay? Like our cycle time, it's not just in time what we're talking about. We are talking about we keep our material at least 25 to 30 days ahead of the production start so that we are able to mitigate it. Now, when you have a situation of this kind, your 20, 25 days is gone off. What we are doing here now going forward with this situation is we are trying to bring it 60 days ahead of time. When you bring 60 days ahead of time, all unforeseen reasons whatever can happen, still we are not going to miss our bus. You are actually shifting your goalpost ahead of what you have.

Mohammed Ajmal Basha: You will have some exposure in terms of higher inventory and all, but that's still better than not able to do it.

[Analyst]: Okay. If you reflect this in terms of the mitigants that you have, the inventory sort of buildup that you've made to respond to the crisis and the order book that you're sitting on, and especially the makeup of the order book, right? There's a high margin order book when it comes to shunt reactors, power transformers, and you mentioned this new sort of type of transformer, which you're moving away from the distribution low value to the high value. If you have to ignore this last three months, six months, because obviously a lot of investors are in the company for the long term, how do you see the outlook when it comes to order book, revenue run rate? I remember you mentioned aspirationally you want to hit this OMR 100 million mark by 2030 in previous calls.

[Analyst 1]: Okay. If you reflect this in terms of the mitigants that you have, the inventory sort of buildup that you've made to respond to the crisis and the order book that you're sitting on, and especially the makeup of the order book, right? There's a high margin order book when it comes to shunt reactors, power transformers, and you mentioned this new sort of type of transformer, which you're moving away from the distribution low value to the high value. If you have to ignore this last three months, six months, because obviously a lot of investors are in the company for the long term, how do you see the outlook when it comes to order book, revenue run rate? I remember you mentioned aspirationally you want to hit this OMR 100 million mark by 2030 in previous calls.

[Analyst]: Today you mentioned on the call that if all had gone well, you would have hit close to OMR 40 million in H1. I'm assuming OMR 80 million for the full year. I just wanted to sort of take a pulse check about the aspirations of the company and where things stand and what's the order book looking like as of today for the next, let's say a year, a year and a half, just to appreciate which direction the company is going in.

[Analyst 1]: Today you mentioned on the call that if all had gone well, you would have hit close to OMR 40 million in H1. I'm assuming OMR 80 million for the full year. I just wanted to sort of take a pulse check about the aspirations of the company and where things stand and what's the order book looking like as of today for the next, let's say a year, a year and a half, just to appreciate which direction the company is going in.

Mohammed Ajmal Basha: See, we have a good order of OMR 98 million in this H1, six months, which is something which is phenomenal. Historically, it has never happened. The highest what we had is also OMR 68 million, and last year we had OMR 47 million something of that kind. We are talking about a very high order book. Okay? That's the first thing. Today, I am having an order booking of OMR 149 million. Okay? Unexecuted order book. The clean order book what I have is almost OMR 150 million, which I need to execute during the course of time. When I see about that itself speaks huge in terms of what we are sitting on, what is the possibilities which are there. This is like, you are ready for next year and year coming also.

[Analyst]: Yes.

[Analyst 1]: Yes.

Mohammed Ajmal Basha: That's the type of order book we have as we talk today. When we see about our aspiration, we had initial aspiration of OMR 100 million by 2030, but we try to work around in a way that we bring it forward. I still hope, Inshallah, next year I'll hit OMR 100 million or in worst case scenario, 2028, I'll hit OMR 100 million. That means, despite of all these things, we have brought our aspiration 2 years ahead of us.

[Analyst]: No, that's extremely a compliment to you and your team, what you guys have done with this company is a fantastic job. In terms of this order book that you're sitting at, just for me to play as the devil's advocate now, are these just some framework sort of agreement where these are not confirmed orders or these are orders that are next to impossible to cancel? Just to understand the industry, can these orders be canceled if things continue, there's strife in the region, or what's the nature of this order book? Is this confirmed and tough to cancel? The second follow-up question is it going to be more or less the same sort of net margin that we've been looking at from the company's perspective? You've been working at this 20% sort of net margin, and you have a competitor in the region who's even higher.

[Analyst 1]: No, that's extremely a compliment to you and your team, what you guys have done with this company is a fantastic job. In terms of this order book that you're sitting at, just for me to play as the devil's advocate now, are these just some framework sort of agreement where these are not confirmed orders or these are orders that are next to impossible to cancel? Just to understand the industry, can these orders be canceled if things continue, there's strife in the region, or what's the nature of this order book? Is this confirmed and tough to cancel? The second follow-up question is it going to be more or less the same sort of net margin that we've been looking at from the company's perspective? You've been working at this 20% sort of net margin, and you have a competitor in the region who's even higher.

[Analyst]: Just to understand, what's the margin profile of this order book?

[Analyst 1]: Just to understand, what's the margin profile of this order book?

Mohammed Ajmal Basha: First of all, we don't consider any order if it is in a framework agreement, because framework agreement is a expectation of what you want. Only purchase orders are taken. Only orders which are confirmed are taken into our order book. That's the first thing. Second thing, every order is backed up with a cancellation clause. If you see last, I can say my memory goes five, six years, not even a single order is canceled. I don't see any orders going to cancel because these are all large products. We are talking into products which are capital investment. A transformer is one of a small part which is there in the capital investment. When you have products of this kind, transformer is what is going to be used for energy, but there are so many other things which has been invested.

Mohammed Ajmal Basha: No one invest on this and just go back or it gets canceled. The cancellation is, I will say 0% is cancellation. There can be some delay here and there. The project may delay because of which instead of going in Q1, goes to Q2 or Q3, but never gets canceled. When it comes to margin, what you're talking about, I've been very vocal on this subject. The product what we are having is a product globally considered with a single-digit margin of 6% to 8%, which has been there for us, there for large multinational companies also. We were doing a lot of actions, lot of market has supported as well as the situation, we were able to get a better margin.

Mohammed Ajmal Basha: I see similar margin levels, maybe ±2% is what I see is what is going to be Inshallah historically also.

[Analyst]: Similar compared to where you are now, right?

[Analyst 1]: Similar compared to where you are now, right?

Mohammed Ajmal Basha: Yes.

[Analyst]: Okay. I thought similar compared to what you were talking about single digits. Okay.

[Analyst 1]: Okay. I thought similar compared to what you were talking about single digits. Okay.

Mohammed Ajmal Basha: Yeah.

[Analyst]: That would be scary. Just to reflect on this point, because we obviously speak to one of your competitors in the region who's listed, and you spoke about maybe the sort of delay in Oman doing this localization initiatives for companies like Voltamp. Because I know Saudi companies have preference up to 30% when it comes to their tendering and supplying to the local sort of network, and that's a huge advantage for listed companies. You mentioned that Oman is moving in the right direction, but it's not been as fast as obviously people would like. Can you give us some inputs about what kind of conversation are you having with regulators, stakeholders? Which direction is the country looking at when it comes to protecting and promoting industries like yours who are creating local jobs and local expertise and generating export revenue from the local sort of production base?

[Analyst 1]: That would be scary. Just to reflect on this point, because we obviously speak to one of your competitors in the region who's listed, and you spoke about maybe the sort of delay in Oman doing this localization initiatives for companies like Voltamp. Because I know Saudi companies have preference up to 30% when it comes to their tendering and supplying to the local sort of network, and that's a huge advantage for listed companies. You mentioned that Oman is moving in the right direction, but it's not been as fast as obviously people would like. Can you give us some inputs about what kind of conversation are you having with regulators, stakeholders? Which direction is the country looking at when it comes to protecting and promoting industries like yours who are creating local jobs and local expertise and generating export revenue from the local sort of production base?

[Analyst]: Just to understand what conversations you're having, how is the.

[Analyst 1]: Just to understand what conversations you're having, how is the.

Mohammed Ajmal Basha: You see.

[Analyst]: Yeah.

[Analyst 1]: Yeah.

Mohammed Ajmal Basha: You see, Saudi Arabia has been in the forefront of localization initiatives, and they are quite ahead of what they're doing. That's the reason we were pushed to go there and do something there. While we see within the GCC region, Oman is also catching up very quickly. We are discussing with the APSR, the Authority for Regulation, as well as there's a new entity called Local Content Authority, which has come up here. We have invited the chairman of this entity. We had our factory visit. We had our meetings and all. We explained everything about that. We had meetings with multiple users from Nama, from OEPC, from OPWP, and authorities which are policymakers and all. We are trying to explain them, and they are also aware of what is happening, and lot of action has been done in that regard.

Mohammed Ajmal Basha: Like, as I said, OIA has released a mandatory list of product, and the Voltamp products are there in the mandatory list. When they say mandatory list, this is mandated to buy. It's not a choice. It's a mandate. Okay. Same way, there's a price preference also come. Currently, it is standing at 10%, we see that it's going to increase. We are having dialogue with all these policymakers so that they are able to see how they secure the local manufacture and how they're able to improvise it. That actually is going. The only thing what I'm saying here is, it's a bit slower than what is required, still there's a good progress in terms of the direction.

[Analyst]: My last question for now is on the Chinese competition coming up in Saudi. There was a very thriving ceramic industry out of Oman which used to supply to Saudi. Today I think that supply is next to zero, and this all happened over a period of three, four years. When the Chinese set up shop in Saudi with huge capacities, localization advantages. You guys sell quite a bit to Saudi. I am not sure exactly the revenue split to Saudi Arabia, so that is my first question. The more important part of the question is, you mentioned that the Chinese are coming in into Saudi as well, and Oman has had one experience with one sector. Why will it be different this time?

[Analyst 1]: My last question for now is on the Chinese competition coming up in Saudi. There was a very thriving ceramic industry out of Oman which used to supply to Saudi. Today I think that supply is next to zero, and this all happened over a period of three, four years. When the Chinese set up shop in Saudi with huge capacities, localization advantages. You guys sell quite a bit to Saudi. I am not sure exactly the revenue split to Saudi Arabia, so that is my first question. The more important part of the question is, you mentioned that the Chinese are coming in into Saudi as well, and Oman has had one experience with one sector. Why will it be different this time?

[Analyst]: How can Voltamp protect its turf, protect its order book, protect its margin, and protect its market of Saudi Arabia? You are also setting up a factory in Saudi, right? It is a two-way now. There is obviously from the local factory itself, you are exposed to Saudi Arabia, and then you are also coming up and setting up a new sort of factory in Saudi itself. This Chinese coming in, it is a bit worrisome. How would you address those concerns that investors may have right now?

[Analyst 1]: How can Voltamp protect its turf, protect its order book, protect its margin, and protect its market of Saudi Arabia? You are also setting up a factory in Saudi, right? It is a two-way now. There is obviously from the local factory itself, you are exposed to Saudi Arabia, and then you are also coming up and setting up a new sort of factory in Saudi itself. This Chinese coming in, it is a bit worrisome. How would you address those concerns that investors may have right now?

Mohammed Ajmal Basha: You see, Saudi transformer market is almost near to $1 billion. This is the market share what Saudi has. Saudi two Chinese companies are setting up their facilities in Saudi Arabia. This is mandated by the Saudi's company, that we are able to have framework agreement and all. It is not that Chinese is coming new. Chinese is establishing the facility newly in Saudi Arabia. Chinese is there in Saudi Arabia for almost eight to nine years now. Supplying from China, we are able to compete with them from suppliers from China. There are segments which are there. Like there are segments for Saudi Electricity Company, there is segment for Aramco, there is segment for renewable and all. Currently, Chinese are very prominent there in the renewable, as you see here also.

Mohammed Ajmal Basha: With those people in, with three Chinese manufacturer already in the list of Saudi Electricity Company, we are still able to meet their competition present to it. We are not seeing that these Chinese manufacturer, when they come locally, they will be price-wise better than coming from China. Primarily because there are a lot of things which need to be done, in this part of the world which is expensive than what you do in China. We are not worried about the price level competition. We are worried about when they build a base, how we are going to act on that base. For that requirement only, we started working with price preference in Saudi Arabia. By the time these companies are there, we should also be there, Inshallah, in Saudi Arabia ourself.

Supplying from China. We are able to compete with them from supply chain or from Supply from China. And these are segments, which are there like your segments for. Uh, so this company is a segment for around. Go, the segments for renewable and all currently is Chinese are very common there in the renewable as we see here also and with those people in uh with the 3 already, in the list of s company, we are still able to meet the uh, competition price and do it. So, we are not seeing that uh uh, this Chinese manufacturer. When they come locally, they will be priced twice better than coming to China. So primary, because, uh, there are a lot of things which need to be done, uh, in this part of the world, which is not, uh, which is expensive than what you do in China. So we are not worried about the price level competition. We are worried about when they spin the base, how we are going to act on this case. For that requirement only, we started working, uh,

Mohammed Ajmal Basha: These are primarily for specific customer base, not for all the customer base, because Saudi Arabia market is so big, it will be able to take care of what our requirement is. Currently, Voltamp is doing almost OMR 15 million in Saudi Arabia. We see that we will be able to still stay at that level. We may not be able to increase more than OMR 15 million, but we will be still be able to do OMR 15 million, plus our joint venture also doing the business there. We will be mitigating it through different other countries. We are working on balanced countries which is not there, and those countries are going to step up and give it what we need.

[Analyst]: Okay. I think what I will do is I will go back and queue. I have a few more questions, but just a comment to you and your leadership and the team. You guys have done a fantastic job. The results are obviously there for everyone to see. Congratulations again, and look forward to seeing the good performance continue. Thank you very much.

[Analyst 1]: Okay. I think what I will do is I will go back and queue. I have a few more questions, but just a comment to you and your leadership and the team. You guys have done a fantastic job. The results are obviously there for everyone to see. Congratulations again, and look forward to seeing the good performance continue. Thank you very much.

Price difference in Saudi Arabia, by the time this companies are there. We we should also be the initial lines or they'll be ourselves and these are family for specific, uh, customer base not for all other customer base, because Market is so big. It will be able to, uh, take care of what our requirement is currently. Hold time, which is almost 15 million Riyal in Saudi Arabia. And we see that we'll be able to uh, still stay at 30 at that level. We will not be able to increase more than 15 million but we'll be still be able to do 15 million. Plus our joint. Major also doing the business there and we will be mitigating it through different other countries. We are working on balance countries, which is not there, and those countries are going to step up and give it what we need.

Mohammed Ajmal Basha: Thanks. Thank you. Anyone else have a question? Go on, Joyce.

Okay, I think what I'll do is I'll go back in queue. I have a few more questions but just a comment to you and your leadership and the team. You guys have done a fantastic job the results obviously there for everyone to see. So you know congratulations again and you know look forward to uh you know seeing the good performance. Continue. Thank you very much.

Thanks. Thanks very much.

Anyone else have a good question?

No, George.

[Analyst]: Hi, good morning.

[Analyst 2]: Hi, good morning.

Mohammed Ajmal Basha: Good morning.

Hi, good morning.

[Analyst]: Could you please discuss the current status of your Saudi Arabia joint ventures? You have two joint ventures. One is the NTC, and then there's the BAM project also. You were saying that initially you have mentioned that it would come online sometime in 2026. What's the current status of these projects?

[Analyst 2]: Could you please discuss the current status of your Saudi Arabia joint ventures? You have two joint ventures. One is the NTC, and then there's the BAM project also. You were saying that initially you have mentioned that it would come online sometime in 2026. What's the current status of these projects?

Good morning.

Just could you please discuss the current status of your Saudi Arabia. Joint ventures. You have 2 joint ventures want to see NTC and then there's the bomb project also. So you were saying that initially you just mentioned that it would come on online, sometime in 2026. So what's the current status of these projects?

Mohammed Ajmal Basha: Both the projects are running a bit slow, primarily because in the current scenario, what we felt was because of what we see, regional conflict and all, we were trying to slightly focus it slow. Even our partners are doing the same thing. We see that this is instead of coming in 2026, it will go in early 2027, but it's all going on track. It's just slow, that's all. There's nothing to be concerned of because ordering of material, everything has gone, the critical machinery has been ordered, and their lead times are also long. Like a vacuum circuit breaker is coming after 14 months. That type of delivery is what we have today because expansion is happening globally. It's a bit slow, that's all.

Slightly focus, it slow. Even our partners are doing the same thing. So we see that this is in store coming in 2026. It will go in early 2027, but it's ongoing on track. We are, uh, uh, we are just slow. That's all nothing. Uh, to be concerned out because ordering of metal, everything has gone. Uh, critical machines has been ordered and their 3 times also long, like a vacuum that is coming after 14 months. That's the type of delivery is what we have today. Because expansion is happening globally. So this if it's still, that's all

[Analyst]: When do we expect the revenue contribution to happen, sometime by end of 2027? What kind of revenue are you expecting from these joint ventures?

[Analyst 2]: When do we expect the revenue contribution to happen, sometime by end of 2027? What kind of revenue are you expecting from these joint ventures?

Mohammed Ajmal Basha: No, we expect that this should happen somewhere in 2027, mid or Q3 of 2027. That's what is our estimation right now. What is the other question? I didn't get it.

So, when do we expect the revenue contribution to happen—sometime by the end of 2027? And what kind of revenue are you expecting from these joint ventures?

No, we expect that they should happen sometime in 2027, or in the mid or third quarter of 2027. That is our estimation right now.

[Analyst]: Revenue related.

[Analyst 2]: Revenue related.

Mohammed Ajmal Basha: If you see revenue-wise, actually the Jeddah plant is designed for transformer up to 132 kV, and our target is that we should produce around 60 transformers of 132 kV, when we are able to have the capacity. 60 transformers of 132 kV currently is at OMR 100 million.

What is the other question I did? So if you see Revenue, why is actually uh the you know, just the plant is designed for Transformer to 1 KB and our Target is that we should produce around 60 transfers of 100 to KB. When we are able to have the capacity, 60,000 or what the currently is at 100 million dollars.

[Analyst]: Will that be achievable in the first year of operations or will it be spread over.

[Analyst 2]: Will that be achievable in the first year of operations or will it be spread over.

Mohammed Ajmal Basha: No. It will take at least four years for reaching the full capacity, OMR 100 million.

[Analyst]: Okay, got it. What's the current capacity utilization of Sohar plant after the expansion?

[Analyst 2]: Okay, got it. What's the current capacity utilization of Sohar plant after the expansion?

Will that be a 2 in the first year of operations? Or will it be—will it take at least four years to reach full capacity?

Okay, got it.

And, uh, what's the current capacity utilization of SOAR, planned after the expansion?

Mohammed Ajmal Basha: We are almost 90%, 92% right now as the Sohar capacity. We are trying to optimize it in terms of using higher ratings. It will increase further. We see by this year end, maybe we'll touch around 95%.

Uh, we are almost at 90%—92% right now—as we saw capacity. We are trying to optimize it in terms of, uh, using higher ratings.

So then it will increase further. So, we see why this year-end, maybe we will touch around 94%.

[Analyst]: Okay. That's on the expanded new capacity, right?

[Analyst 2]: Okay. That's on the expanded new capacity, right?

Mohammed Ajmal Basha: Yes.

Okay, that's on the, uh, expanded new capacity, right?

[Analyst]: Okay, that's cool. When you mentioned about your OMR 98 million order book, is that the new orders that you've received in this year, or is that the entire order book that we are talking about?

[Analyst 2]: Okay, that's cool. When you mentioned about your OMR 98 million order book, is that the new orders that you've received in this year, or is that the entire order book that we are talking about?

Mohammed Ajmal Basha: No, OMR 98 million is the order book we received from 1 January 2026 till 30 June 2026. What orders we have in hand to be executed is OMR 149 million.

Yes, okay, that's cool. And, uh, but when you mentioned your 98 million order book—uh, is that the new orders that you've received this year, or is that the entire order book that we are talking about?

No, 98 million is the order. What we received—transfers, January 2026 till 38 to 2026. What orders we have in hand to be executed is 149 million.

[Analyst]: Okay. How do you see the order momentum coming up?

[Analyst 2]: Okay. How do you see the order momentum coming up?

Okay. And how do you see the order momentum coming up?

Mohammed Ajmal Basha: We have a good order flow. As you've seen, the H1 has been phenomenal. It has crossed the budget; it has crossed the previous years also. It is almost double than what we did last year. We see the continuity come in the similar fashion, not OMR 98 million in the H2, but considerably good in H2 also.

[Analyst]: Okay. My last question is on the kind of investments that you'll be planning to do with the Watenha project. My understanding is you will be co-investing with other companies that are now willing to come to Oman. What kind of investments from Voltamp's side are we looking at?

[Analyst 2]: Okay. My last question is on the kind of investments that you'll be planning to do with the Watenha project. My understanding is you will be co-investing with other companies that are now willing to come to Oman. What kind of investments from Voltamp's side are we looking at?

We have a good order flow. As you have seen, the first half has been phenomenal. It has crossed the border; it has crossed the previous years also. It is almost double what we did last year, so we see the continuity coming in a similar fashion. Not the 98 million in the second half, but considerably good in the second.

Okay.

And my last question is on your uh the type of the kind of Investments that you'll be planning to do with the, uh, what an app project.

Mohammed Ajmal Basha: We are having zero investment. We are not doing any investment in these companies. From our side, what we're doing is we're trying to give an offtake agreement. Offtake agreement for a period of two to three years. This offtake agreement will be based on 30% to 70% of the requirement because there are certain customers which have specific brand to be used. We can't be using those brands. We are very clear about this to our suppliers also. We're trying to integrate our SMEs, technology partners, and any investors which are there. There are many companies who are ready to invest, including some of the banks also has come forward to help them, as well as Riyada themselves is interested to help them. We are trying to combine these three, four companies together so that they're able to establish it.

Uh, uh, my understanding is you will be co-investing with other companies that are willing to come to Oman. So what kind of investments from Voltamp's side are we looking at?

So, we are having zero investment. We are not doing an investment. In these companies, we are trying to, uh,

From our side. What we are doing is we are trying to even off take agreement after agreement based on, uh, uh, for a period of 2 to 3 years. And this objective agreement will be based on 30% to 70% of the requirement. Because there are certain customers which has specific brand to be used. We can't be using those M. So we have very clear about this to our suppliers so that we trying to integrate our, uh, SMS technology partners. And uh, any investor, which are there. Like they are many companies who are ready to invest in some of the banks of this come forward to help them as well as Ria themselves is interested to help there. So we are trying to combine these 3 4

Mohammed Ajmal Basha: From our side, our commitment is first is we'll give a offtake agreement, which is limited based on what requirement are there. We will technically handhold them so that they are able to understand the product and take it forward. We're going to even help them go regionally, primarily because we are supplying regionally. We will put their approvals into the place so that other utilities also approve them, then they can supply to us and others also.

[Analyst]: Okay, there will not be any investment from Voltamp?

[Analyst 2]: Okay, there will not be any investment from Voltamp?

Companies together, so that they are able to establish it from our side. Our commitment is, first, we'll give an off-take agreement which is limited based on what requirements are there. We will technically handle them so that they are able to understand the product and take it forward. We're going to even help them go regionally, because we are supplying regionally. So we will put their referrals into place so that other utilities also, for them, then they can supply to us. And others also.

Mohammed Ajmal Basha: No, we are not going to invest anything on this side.

[Analyst]: Okay. You're just help facilitating the process.

[Analyst 2]: Okay. You're just help facilitating the process.

Mohammed Ajmal Basha: Exactly.

[Analyst]: Right. Okay. That's it. Thank you very much.

[Analyst 2]: Right. Okay. That's it. Thank you very much.

Okay, so there will not be any investment from Volta now. We are not going to investigate it, just help facilitate the process. Exactly.

Mohammed Ajmal Basha: Thanks. Anyone else is there? Joshua.

Right. Okay, that's it. Uh, thank you very much. Thanks. Thanks. Anyone else, is there?

Yeah, sure.

[Analyst]: Yes. Hello. Thank you for the presentation. I just had a couple of questions. The order book that you mentioned of close to OMR 99 million, would you be kind enough to provide us with the breakup of power versus the Distribution Transformers in this order book?

[Analyst 3]: Yes. Hello. Thank you for the presentation. I just had a couple of questions. The order book that you mentioned of close to OMR 99 million, would you be kind enough to provide us with the breakup of power versus the Distribution Transformers in this order book?

Since, uh, the order book that you mentioned of close to 99 million riyals, uh, would you be kind enough to provide us with a breakup of Power versus Distribution Transformers in this order book?

Mohammed Ajmal Basha: In the OMR 98 million or the full order book what I have?

So, uh, in the 198 million real, or the full order of what I have.

[Analyst]: Yes.

[Analyst 3]: Yes.

Mohammed Ajmal Basha: I'll give you full order book.

uh, yes, uh

[Analyst]: Yes. Okay.

[Analyst 3]: Yes. Okay.

Mohammed Ajmal Basha: I'll give you full order book of OMR 150 million, OMR 49 million what I have. Majority is power transformer, obviously it is power transformer. Majority is power transformer. For distribution transformer also, I have got almost OMR 25 million. I have almost close to OMR 5 million for switchgear and other products, which is going to grow. Balance all are for power transformer. If you see again, as I showed it, 30% is domestic and 70% is export. In export also, we have substantial orders from the US, followed by the UAE, Saudi Arabia, Qatar, Kuwait, and all. We have a spread of four orders which are there. Currently, the unexecuted order book what I have is from almost 14 countries.

Thank you. Yes. Okay. Are you full on the book of $150 million? What? What, $49 million what? I have the majority of power. So, obviously, this is part of transformation, but distribution transformers also. I got almost $25 million. Yeah, I have almost close to $5 million real first year and other products, which is going to grow. Balance, all our Football customer, but if you see again, see, I showed it at 30% is domestic and 70% is export. In export also, we have substantial orders from the USA, followed by UAE, Saudi Arabia, and all. So, we have a spread of orders which are there. So, currently, the unexpected or what I have is from almost 14 countries.

[Analyst]: Perfect. Thank you. If I remember correctly, in the last call you had mentioned that the US is a potential market that you guys are now tapping into, and you had received your first order. Just an update on how that is going. Have you received any further orders from that?

[Analyst 3]: Perfect. Thank you. If I remember correctly, in the last call you had mentioned that the US is a potential market that you guys are now tapping into, and you had received your first order. Just an update on how that is going. Have you received any further orders from that?

Perfect. Thank you. And uh, if I remember correctly in the last call you had mentioned that USA is a is a is a potential Market that you guys are not tapping into and you have received your first order just uh, you know, uh, I'll be there and how that is going. As we received any further orders from that,

Mohammed Ajmal Basha: No. We got the first order in 2024. We supplied in 2025, and Alhamdulillah, it's energized and this substation is running. This was the first order of $10.5 million, around $10.5 million, where we supply, install, commission, and completed everything. This is in a place called Nevada Data Center. We supplied it. Subsequent to that, we got almost near to $100 million orders from various customers in the US, including one utility also.

So, we Supply the first order, we got the first order in 2024, we Supply in 2025, and the number is energized and this uh uh substation is running. And this was the first order of 10.5 million around 10.5 million where we Supply installed commission and completed everything, this is in a place called Data Center. We supplied it subsequent to that we got almost almost near to 100 million dollars orders from various customers in years.

including on utility also,

[Analyst]: Okay, great. That's very healthy. The US is a market that is potentially able to cover up if things go south in the Saudi because of the competition. Should we assume that?

[Analyst 3]: Okay, great. That's very healthy. The US is a market that is potentially able to cover up if things go south in the Saudi because of the competition. Should we assume that?

Okay, great, that, that's very healthy. Uh, so uh, us is a market that is potentially, you know, uh, able to uh, cover up if things go south in the Saudi because of the competition, she should be, uh, assume that

Mohammed Ajmal Basha: Yeah, most likely. We don't anticipate to have any concerns on Saudi market getting reduced also because we have created a very strong base right now. If you see both in UAE and Saudi Arabia, currently we have more than 70% of new substation supplied by us in UAE. Saudi Arabia, it will be around 30%, 35%.

Yeah. Most likely, uh, uh, what we see is, uh, we don't anticipate, uh, to have any, uh, uh, concerns on Saudi Market in getting uh, reviews also because uh, we have created a very, very strong base right now, if you see uh, uh, both in UAE and Saudi Arabia, currently, we have uh, uh More than 70% of the new substation suppliers.

I enjoy it. So, it will be around 30 to 35%.

[Analyst]: Thank you.

[Analyst 3]: Thank you.

Mohammed Ajmal Basha: Despite of all the challenges that are there.

[Analyst]: Great. Thank you. My last question is regarding your cash management. Obviously with the increase in sales, you have some working capital requirements. We have seen an increase in your receivables and your inventories. My question is, do you guys have any major capital expenditure in the coming two to three years? How is your cash position looking like?

[Analyst 3]: Great. Thank you. My last question is regarding your cash management. Obviously with the increase in sales, you have some working capital requirements. We have seen an increase in your receivables and your inventories. My question is, do you guys have any major capital expenditure in the coming two to three years? How is your cash position looking like?

Great, thank you. Uh, and my last question is regarding your, uh, cash management. So, obviously, with the, uh, increase in sales you have some working capital requirements. We have seen an increase in your, your receivables and, uh, your inventories. Uh, my question is, do you guys have any, you know, uh, major capital expenditure in the coming two to three years?

Uh, and how is your cash position looking like?

Mohammed Ajmal Basha: Cash flow is positive. Navin can tell more about that, but we have expansion plans. We have capacity there. Even this year we have two CapEx in Oman. We have two joint ventures running in. We are also exploring other alternatives which are there. Still we feel that the cash flow is quite positive. We don't have any cash flow because we don't have any data at the moment in our book. We have complete flexibility considering our debt to equity ratio. Even if we need further funds for capitalization, we can easily approach the banks and get the term loans on a favorable

That first positive—uh, uh, more about that. But we have expansion plans, we have capacity. Is there—

People, this year we have two capex.

In Oman, we have two in which are running. We are also exploring other alternatives which are there, but still we feel that the cash flow is quite, uh, positive and I—

We don't have any cash for services because we don't have any data at the moment in our board. So, we have complete collection that's here in our database. So, even if we need funds for capitalization, we can easily approach the banks and get the term loans on the table.

[Analyst]: Great. Thank you. Would you be able to give us a ballpark number of the expected quantum of this capital expenditure this year and the next?

[Analyst 3]: Great. Thank you. Would you be able to give us a ballpark number of the expected quantum of this capital expenditure this year and the next?

Mohammed Ajmal Basha: You see, for National Transformer Company, which is a joint venture in Saudi Arabia, the full plant is OMR 10 million. Again, it is debt and equity both are there, and there is a partner also. Similarly, OMR 8.5 million is there in the DCT Labs joint venture. Apart from that, around OMR 2 million is what we are spending here in Oman.

Great, thank you. Would you be able to give us a ballpark number for the expected quantum of this capital expenditure this year and next?

You see, uh, for National Transform Company, which is a joint venture in Saudi Arabia, the whole plant is 10 million. Again, it is yet an equity; both are there and there is a partner also. Similarly, 8.5 million is there in the GCP20 venture. Apart from that, around 2 million is what we are spending here in.

[Analyst]: Great, sir. Highly appreciate the transparency. Thank you. Thank you very much.

[Analyst 3]: Great, sir. Highly appreciate the transparency. Thank you. Thank you very much.

Mohammed Ajmal Basha: Thanks. Any other questions out there? Yeah, Basit. Go on, Basit.

Uh, great, sir. I highly appreciate the transparency. Thank you, thank you very much.

Any other questions are there?

Yeah, what's going on?

[Analyst]: What's the Oman CapEx that you're talking about specifically? What's the project?

[Analyst 4]: What's the Oman CapEx that you're talking about specifically? What's the project?

What's the Oman CapEx that you're talking about specifically? Like, what's the project?

Mohammed Ajmal Basha: In Oman, we are adding one test lab, because last time we added the expansion of assembly area, and now since we are doing large transformers and all, we want to have a new test lab. This new test lab is coming. We have already ordered this test lab, but we're trying to see where we locate it, whether we locate it in the same premises or a different premises, and that is on the final stage of decision. Maybe within one month or so, we'll be disclosing this, where we are going to set up this one, and this will be specifically dedicated for a new test lab.

Now, since we are doing large customers and all, we want to have a new test lab. This new test lab is coming. We have already ordered this lab, but we are trying to see where we will locate it—whether we locate it at the same premises or at different premises. And that is in the final stage of decision; maybe in, uh, within maybe one month or so, we will be discussing this. We are going to set up this one, and this will be specifically dedicated for a new test lab.

[Analyst]: Okay. To answer the follow-up from Joyce's question, where you mentioned that you're already working at this 90% and 95% utilization in the Sohar plant, and maybe there is some extra capacity that will come to you if you increase the ratings of the transformer that you produce. From that perspective, is there a plan to increase the Sohar facility further, and is there any more debottlenecking or any expansion in the Rusail facility that's already being discussed internally?

[Analyst 4]: Okay. To answer the follow-up from Joyce's question, where you mentioned that you're already working at this 90% and 95% utilization in the Sohar plant, and maybe there is some extra capacity that will come to you if you increase the ratings of the transformer that you produce. From that perspective, is there a plan to increase the Sohar facility further, and is there any more debottlenecking or any expansion in the Rusail facility that's already being discussed internally?

Mohammed Ajmal Basha: No, we are not planning to do any expansion in Rusail facility for distribution transformer. Power transformer, as I said, we are investing on the test lab, which is there. Based on how things are moving, we are going to take further decision. Most likely, this is still a work in process. If we are able to reach 95% of our utilization in Sohar plant and test lab is there, we may do some more expansion, maybe 2026, 2027, 2028. That's what is there. Apart from that, we are also working on battery energy storage system here in Oman, and that is another vertical altogether on expansion. Still this is very initial stage where we're trying to assemble it here in our existing factory in door 7. If that goes well with the stakeholder what we have, then that will be a bigger expansion.

Okay. And to answer, you know, the follow-up from Joyce's question, where you mentioned that you are already working at this 90–95% utilization in the Sahar plant, and maybe there is some extra capacity that will come to you if you increase the ratings of the transformers that you produce—from that perspective, is there a plan to increase the Sahar facility further? And is there any more debottlenecking or any expansion in the Sohar facility that's already being discussed internally?

No, we are not planning to do any expansion in Russia's facility for distribution transformers. For power transformers, as I said, we are investing in a test plant, which is there, and based on how things are moving, we are going to take further decisions. Most likely, this is still a work in process. If we are able to reach 91% of our utilization, it is quite flat, and that means we would want to do some more expansion, maybe in 2026 and 2027–28, that's what is there. But apart from that, we are also working on a battery energy storage system here in Oman.

[Analyst]: You know.

[Analyst 4]: You know.

And that is another, uh, vertical altogether on expansion. And still, this is, uh, uh, very initial process uh, stage, where we're trying to assemble it here in our existing Factory Road Number 7 and if that well goes well, uh, with the stakeholder, what we have, and that will be a bigger expansion.

Marhoon Mubarak Darwish Al Oweisi: Ajmal, you try and give them more enlightenment about Sohar International, please. They can get more comfort of our expansion.

So, you know, you can give them more in, like, about...

Mohammed Ajmal Basha: Mr. Varun is our audit committee chairman. That is still under final decision-making in terms of that, Mr. Varun. That's the reason I'm not disclosing it at this point of time. When it is on a public disclosure, it is better that we discuss.

So they can give more comfort to our expansion.

It's still, uh,

Some around is our Audit Committee Chairman. That is still under final decision-making in terms of that. Mr. That says that I am not discussing it at this point of time. When it has got a public disclosure, then it is better that we discuss.

[Analyst]: Mr. Ajmal, the last time you mentioned a new product, for us, it was difficult to sort of put that into perspective, the shunt reactor. Now it seems that it generates. I guess my question is, you mentioned a shunt reactor on a similar call maybe a couple of years ago. Just to put that into perspective, what percentage of sales or what is the absolute revenue that comes from shunt reactors as of H1 2026?

[Analyst 4]: Mr. Ajmal, the last time you mentioned a new product, for us, it was difficult to sort of put that into perspective, the shunt reactor. Now it seems that it generates. I guess my question is, you mentioned a shunt reactor on a similar call maybe a couple of years ago. Just to put that into perspective, what percentage of sales or what is the absolute revenue that comes from shunt reactors as of H1 2026?

You know, Mr. AJ, the last time you mentioned a new product, you know, for us it was difficult to sort of put that into perspective—the shunt reactor,

And but now it seems that that's a—it's, it generates—I don't know what's—okay, my, I guess my question is, how much does this—you know, you mentioned a shunt reactor on a similar call maybe a couple of years ago. And just to put that into perspective, what percentage of sales, or what's the absolute revenue that comes from shunt reactors as of the first half of 2026?

Mohammed Ajmal Basha: In 2025, we did almost OMR 6 million for shunt reactor, in 2026 also, we should be doing almost OMR 6 to 7 million in shunt reactors.

[Analyst]: Okay, wow. You are looking at almost, I don't know, 7% to 8% of your sales aspirationally coming from shunt reactors. Today on the call, I think this is the first time you mentioned this battery energy storage system. From our perspective, how do we look at the revenue opportunity and the timeline for this sort of project, right? Because you have these ideas, being the market expert, but people like us sometimes are not able to put this into perspective when it comes to numbers, opportunity, timelines. From that perspective, how would you measure success in this sort of initiative of battery energy storage systems?

[Analyst 4]: Okay, wow. You are looking at almost, I don't know, 7% to 8% of your sales aspirationally coming from shunt reactors. Today on the call, I think this is the first time you mentioned this battery energy storage system. From our perspective, how do we look at the revenue opportunity and the timeline for this sort of project, right? Because you have these ideas, being the market expert, but people like us sometimes are not able to put this into perspective when it comes to numbers, opportunity, timelines. From that perspective, how would you measure success in this sort of initiative of battery energy storage systems?

Uh, in 2025, we did almost, uh, 6 million bri for Shanti, and uh, in 2026 also, we should be doing almost 6 to 7 million real incentives. Okay, wow, so you're looking at almost, you know, uh,

I don't know, 7 to 8% of your, you know, sales, aspirationally, coming from Chantry actors. Now, today on the call—

Mohammed Ajmal Basha: See, the battery energy storage system is a complete different world. Okay, we had signed a technology agreement with a company in China, which is a very large company manufacturing battery energy storage system. We launched our BESS product in last Oman Sustainability Week, we're going to have a physical product display in GITEX in Dubai in October. This product is something which is the trend or the demand right now, because in the renewable sector. I will come back to you, Pritam. In the renewable sector, you have generation of energy. When you have excess generation of energy by solar power and all, and when there is no utilization, it just goes to waste. What generally is done is, when the excess energy is generated, it has to be stored. Battery storage system has started place in Oman recently. It is not very old.

I think this is the first time you mentioned this battery energy storage system. So, from our perspective, how do we look at the revenue opportunity and the timeline for this sort of project? Because you have these ideas, being the market expert, but people like us sometimes are not able to put this into perspective when it comes to numbers, opportunity, and timelines. So, from that perspective, how would you measure success in this sort of initiative of battery energy storage systems?

See, the batteries in the store system is a completely different world.

Okay, we had the find the technology equipment with a company in China, which is a very large company. Manufacturing battery. This is to system, we lost, we learned the word VSS product in last 2 months, sustainability week. And we're going to have a physical product display in vertex in Dubai, uh, in October. And this product is something, which is uh, uh, the trend or the Demand right now. Because, uh, in a renewable sector, I'll come back to you with them in a renewable sector, you have uh uh generation of energy when you have excess generation and energy by solar power and all and he

Mohammed Ajmal Basha: We have started working on it, currently we are at our phase 1 stage. Maybe phase 2, phase 3 stage, it will be a very big investment coming in, maybe around OMR 80 to 100 million. This itself, battery energy storage system, can give you a sales of OMR 30, 35 million.

When there is no utilization, it just goes to waste. What is done is, when excess energy is generated, it has to be stored. So, a battery system has already started being placed in Oman. It is not very old, we have just started working on it, and currently we are at our Phase 1 stage. Maybe in Phase 2 or Phase 3 there will be a very big investment coming in, maybe around...

[Analyst]: Wow. Okay. Timeline-wise, how are you looking at this? Is it two-year story, three-year story before you come-

[Analyst 4]: Wow. Okay. Timeline-wise, how are you looking at this? Is it two-year story, three-year story before you come-

$80 to $100 million, and this is for the battery storage system itself. Can you give a sales forecast of $25 million for 2025?

Mohammed Ajmal Basha: It's a three-year story.

[Analyst]: Okay.

[Analyst 4]: Okay.

Mohammed Ajmal Basha: We are the first year now, maybe 2028, 2029, that's where we are going to see a big ticket coming up for BESS.

[Analyst]: One more question. Mr. Marhoon is also on the call. I think I've spoken to him in the past also. I'll come to the second point first, which is, any part of your compensation linked to stock prices. I feel like that's something that I've raised earlier as well. I think senior management-

[Analyst 4]: One more question. Mr. Marhoon is also on the call. I think I've spoken to him in the past also. I'll come to the second point first, which is, any part of your compensation linked to stock prices. I feel like that's something that I've raised earlier as well. I think senior management-

Okay, and timeline-wise, how are you looking at this? Is it a two-year story? Three-year story before you come up? Here, we are in the first year now, so maybe 2028-29—that's where we are going to see, I think, a ticket coming up for this.

And, you know, one more question. Mr. Maroon is also on the call, and I think I've spoken to him in the past. Also,

Uh, and I'll come to the—the second point first, which is, you know, as, as...

Mohammed Ajmal Basha: If we allow Pritam to have his question.

[Analyst]: Okay.

[Analyst 4]: Okay.

Mohammed Ajmal Basha: I think he's just waiting for some time.

[Analyst]: Khalas. Okay. I'll come back. Okay.

[Analyst 4]: Khalas. Okay. I'll come back. Okay.

Mohammed Ajmal Basha: Yeah. Yes. You can come back anytime to us. Pritam, can you ask the question, please?

You know, is any part of your compensation linked to stock prices? I feel like that's something that, you know, I've raised earlier as well, and I think senior management does have this question, and he's just waiting for that. Okay, but I'll come back. Okay? Yeah, yes, yes, you can come back any time. Doors.

[Analyst]: Yes. Thank you very much, congratulations on a good set of numbers. My question was regarding the US business. Could you give us a sense on the differences in pricing and margins when it comes to US versus GCC? What is your sense on the sales contribution of US, let's say, 3 years from now? Thank you.

[Analyst 5]: Yes. Thank you very much, congratulations on a good set of numbers. My question was regarding the US business. Could you give us a sense on the differences in pricing and margins when it comes to US versus GCC? What is your sense on the sales contribution of US, let's say, 3 years from now? Thank you.

You have the question.

Uh, yes. Thank you very much, uh, and congratulations on a good set of numbers. Um, my question was, uh, regarding the uh, us, uh business. Uh, could you give us a sense on the uh differences in pricing and margins when it comes to US versus GCC? And uh what is your sense on the sales contribution of uh us let's say 3 years from now?

Thank you.

Mohammed Ajmal Basha: Okay. If you see, US prices are good compared to GCC. Quite good. It's a different type of business model in the USA. The documentation, engineering, and requirements are very high. You work a lot of time on engineering clarification and all. It goes through a big phase of requirements. The prices are different. It's not standard type as what we see in GCC countries. When it comes to margins, obviously the margins are better in US.

Okay, so if you see a US price are good compared to GCC quite good, uh, it's uh, uh, it's, uh, it's a different type of business model in the USA. The documentation engineering and requirements are very, very high and, uh, you, you work a lot of, uh, time on engineering clarification and all it goes through a big phase of, uh, uh, requirements and the price are different. It's not Standard time. I was seeing GCC countries and when it comes to, uh, margins, obviously, the margins are better in US.

[Analyst]: Okay. In terms of sales contribution, do you have a number in mind?

[Analyst 5]: Okay. In terms of sales contribution, do you have a number in mind?

Okay, and in terms of sales contribution, do you have a number in mind?

Mohammed Ajmal Basha: Currently, if you see now, the order book, what we have, almost 23% is my US order booking. What I have the total unexecuted order book, 23% is my US order booking. This is spread across 2026, 2027, 2028.

Uh, currently if you see enough our uh, what the, what we have almost, uh, uh, 23% is my us, uh, order booking. Uh, what I have the total number. I need to do 23% is my us order booking, and this is spread across 26, 27 288.

[Analyst]: Okay. Thank you very much.

[Analyst 5]: Okay. Thank you very much.

Okay, thank you very much.

Mohammed Ajmal Basha: Anyone else have any question?

Anyone else have any question?

[Analyst]: Yes. As-salamu alaykum.

[Analyst 6]: Yes. As-salamu alaykum.

Mohammed Ajmal Basha: Wa alaykum as-salam.

[Analyst]: Thank you very much, Mr. Ajmal. You are very fast in actioning. I remember in the last quarter, there was a recommendation to split the shares, and it was done in no time. My question is about the renewable energy. You mentioned about the storage batteries. However, the country is diversifying into hydrogen and all of that. Do you guys have any intention to get into that industry, the renewable energy industry? Do you have any products focused on the oil and gas industry as well? Because you see, Oman is a lot into an oil and gas industry kind of spending. If you can please share your thoughts about these two main industries where we see you can diversify and beat the competition. Thank you, Mr. Ajmal.

[Analyst 6]: Thank you very much, Mr. Ajmal. You are very fast in actioning. I remember in the last quarter, there was a recommendation to split the shares, and it was done in no time. My question is about the renewable energy. You mentioned about the storage batteries. However, the country is diversifying into hydrogen and all of that. Do you guys have any intention to get into that industry, the renewable energy industry? Do you have any products focused on the oil and gas industry as well? Because you see, Oman is a lot into an oil and gas industry kind of spending. If you can please share your thoughts about these two main industries where we see you can diversify and beat the competition. Thank you, Mr. Ajmal.

Mohammed Ajmal Basha: Yeah. Thanks. If you see renewable energy, Voltamp has produced the first power transformer for Alamin project in Oman. We were the first to produce a renewable power transformer. We were the first to produce the inverter duty transformer for Sudair power plant in Saudi Arabia, which was again the first. We are now into green hydrogen transformer, which is a rectifier transformer. We have good number of products which are there for renewable products that we are able to supply. Currently, we have supplied more than 8 gigawatts of renewable energy transformer products into the system in Oman and the GCC. We are also supplying one very special new technology renewable energy system in UK. We are supplying the transformer for that. That also transformer is first in the world for that type of energy contribution, and we are supplying it.

Uh yes sir. Thank you very much, Mr. Rajul, you are very passionate. I remember in the first the last quarter you said you will split. The there was a recommendation to split the shares and it was done in no time. Uh, my question is about uh the you know, a renewable energy. You mentioned about the storage batteries, however the countries diversifying into hydrogen and all of that. So you guys have any intention to uh get into that industry, the renewable energy industry. And also do you have any uh, products focused on the oil and gas industry as well? Because you see a man is is a lot into an oil and gas in this 3 kind of spending. Uh so so if you can please uh uh you know, share your thoughts about 2, these 2 main industries uh where we see you know, you can diversify and you know, beat the competition.

Thank you, sir.

Mohammed Ajmal Basha: Battery energy storage system transformers, we are currently working very closely with multiple projects in UK, where we are expecting to have some orders breakthrough. Recently we are working with a company in Malaysia also for similar product, which is there. We are very much there in renewable. What was second, Mr.? Oh, oil and gas. Yes. You see, Ali, oil and gas, Voltamp is very famous for oil and gas. We produce a transformer for multi-tap transformer for artificial lift. Wherever you have artificial lift of oil production, whether it is Saudi Arabia, Kuwait, or Oman, which are the major countries which have got artificial lift, we have a transformer for that, and we have long-term agreement with Schlumberger, Baker Hughes, Halliburton, and all for our oil and gas transformers. We supply KOCs, KNPCs and all on a regular basis.

Thank you. We have produced the first power transformer for the Alarming project in Oman. It was the first to produce a renewable power transformer. We were also the first to produce the Inverted Duty transformer for their power plant in Saudi Arabia, which was again a first. Now, we are into green hydrogen transformers, which is a rectifier transformer. So, we have a good number of products that are there for renewable projects, which we are able to supply. Currently, we are supplying more than 8 gigawatts of renewable energy transformer products into the system in Oman and the GCC. We are also supplying one very special new technology renewable energy system in the UK—we supplied the transformer for that. That transformer is also the first in the world for that type of energy contribution, and we are supplying it.

1 day in the Nova.

When it comes to, uh, uh,

Okay, we produce a transformer for multi-tap transformers for artificial lift.

Wherever you have artificial lift of oil production.

Mohammed Ajmal Basha: We have our contracts with them. We have been supplying oil and gas transformers for quite a long time. We supply to PEO, we supply to Oxy, we supply to all these people.

Whether it is Saudi Aramco or not, which are the major countries which do not have artificial? We have a class of that and we have long-term agreements with all of our oil and gas customers. We supply KCs, K and PCs, and all on a regular basis. We have a contract with them. So, we have been supplying all the gas transformers for quite a long time. We supply to PDO, we supply to Oxy, we supply all these people.

[Analyst]: Great. Thank you very much. One more question. I think we have some limited time. Now, Mr. Ajmal, you have big plans to grow. What are your plans when it comes to funding these projects? I know a colleague mentioned that your debt capacity is still there. However, as you know, it is always about debt and equity together. Any plans to increase the equity or the capital of the company so it supports your capacity to grow and borrow and you have, mashallah, a lot of growth, mashallah, pipeline. This is my second question or whatever, third question. The last question is about. Well, actually, I forgot about it. Yeah, this is the main question about your capitalization for the equity. Thanks.

[Analyst 6]: Great. Thank you very much. One more question. I think we have some limited time. Now, Mr. Ajmal, you have big plans to grow. What are your plans when it comes to funding these projects? I know a colleague mentioned that your debt capacity is still there. However, as you know, it is always about debt and equity together. Any plans to increase the equity or the capital of the company so it supports your capacity to grow and borrow and you have, mashallah, a lot of growth, mashallah, pipeline. This is my second question or whatever, third question. The last question is about. Well, actually, I forgot about it. Yeah, this is the main question about your capitalization for the equity. Thanks.

Great. Thank you very much. One more question—I think we have some limited time. So now, Mr. A, you know, you...

Have big plans to grow.

uh,

so so what are your plans when it comes to funding these projects? I know a colleague mentioned that, uh, your debt capacity is still there. However, you know, as you as you know, it's always about debt and Equity together. So any plans to increase the equity or the capital of the company, so that supports Your Capacity to grow and borrow

And you know, you have, mashallah, a lot of growth—you know, mashallah, pipeline. You know, so this is what, first, second question or whatever. Third question. And the last question is about...

Mohammed Ajmal Basha: If you see, whatever projects we already announced, like our two joint ventures in Saudi Arabia, the expansion here, we are taking some debt from banks and all. We are not looking for any equity contribution at this point of time. We do not see it unless until something else comes new. Like if BESS investment comes new as a new plant, maybe something of that kind. As of now, whatever our firm plans which are there, we do not see any equity addition to come in.

Uh, well, actually I forgot about it. But yeah, this is the main question about your capitalization for the equity. Thanks.

Whatever project we already announced. Like our 2 joint ventures in Saudi Arabia, the expansion year. Uh we are we are we are we are we are taking some debt from Banks and all but we're not looking for any Equity contribution at this point of time and we don't see it unless until something else comes. New like if vsss investment comes to you as a new plant, maybe something on the ground, but as of now, whatever, our firm plans are there. We don't see any uh, Equity additions to come in.

[Analyst]: Yes, I remember the question. Sorry. What about repair, maintenance, and after-sales? Now all focus is about selling generators and transformers and so forth. Do not you see a business line into after-sales, repair, maintenance, and creating that kind of regular income when it comes to AMCs and all of that? Thanks, Mr. Ajmal.

[Analyst 6]: Yes, I remember the question. Sorry. What about repair, maintenance, and after-sales? Now all focus is about selling generators and transformers and so forth. Do not you see a business line into after-sales, repair, maintenance, and creating that kind of regular income when it comes to AMCs and all of that? Thanks, Mr. Ajmal.

Mohammed Ajmal Basha: If you see, we used to have an engineering service division connected with one of our subsidiaries, and this was doing like half million to OMR 600 business. We took this engineering service division and separated out and merged it with a separate SBU. Yousuf Balushi is the head of that SBU. We have technology and engineering service together there. AlhamduliAllah, this year we see that we should be able to do almost OMR 2 million only in the engineering service division. We have a lot of plans which are there in engineering service division. Do you want to add something, Yousuf?

Yes, I remember the question. Sorry. What about the repair maintenance and after sales? So now all focus is about you know uh selling generators and Transformers and so forth. Don't you see a business line in to after sales repair maintenance and you know, creating that kind of uh regular income uh when it comes to AMC's and all of that. Thanks. Thanks Mr.

Yousuf Ibrahim Al Balushi: Yes. Also for service division, we are taking support for our services. It gives more confidence to our clients, customers that we are available with them for all stages, even testing, commissioning of the assets we are supporting and all. From other sides and new technologies also for this, all these things, we are preparing our team to be ready to give all support for these new projects.

Yousuf Al Balushi: Yes. Also for service division, we are taking support for our services. It gives more confidence to our clients, customers that we are available with them for all stages, even testing, commissioning of the assets we are supporting and all. From other sides and new technologies also for this, all these things, we are preparing our team to be ready to give all support for these new projects.

So, if you see, we used to have an Internet Service Division connected with one of our subsidiaries, and this was doing around £500,000 to £600,000 business. We took this Engineering Service Division and separated it out, and merged it with a separate SBU. And Mr. User Biology is the head of that SBU. So, we have technology and engineering service together there. Then, this year, we see that we should be able to do almost £2 million—really only in engineering service—and we have a lot of plans which are there in Engineering Services. You want to add something, sir?

Also, for the service division, we are taking support for our sales services.

So it's giving more confidence to our clients' customers that we are available with them at all stages—7, 15, calming of the assets. We are supporting.

From other sides, and new technologies are also for this. All these things—we are preparing our team to be ready.

To go to, to give all support for this new project.

Mohammed Ajmal Basha: Any other question? Sorry.

[Analyst]: I think, Mr. Ajmal, I think this is an area where I wanted to explore further. I think we can do more as Voltamp for our customers for after-sales, as my colleague mentioned that about confidence and reliability and that you are with the customer for a long time. I think that's an additional value maybe Voltamp can explore. I think there is some value. I think it's worth exploring further. Thanks.

[Analyst 6]: I think, Mr. Ajmal, I think this is an area where I wanted to explore further. I think we can do more as Voltamp for our customers for after-sales, as my colleague mentioned that about confidence and reliability and that you are with the customer for a long time. I think that's an additional value maybe Voltamp can explore. I think there is some value. I think it's worth exploring further. Thanks.

Any other questions? I I I think, I think Mr. I think this is an area where I want to explore further.

Mohammed Ajmal Basha: Thanks. Anyone has any question? We are just running out of time. One minute more is there. If there's no more question, I will end this session now. We had one-hour session. Thank you very much, everyone. Abbas, you had any more questions?

Uh, I think I think we can do more as long for our customers, for after sales, getting the, my colleague mentioned that, you know, about confidence and reliability and you know, that you are with the customer for a long time, you know? So, I think that's an additional value. Maybe Bolton can explore. Uh, you know, when uh, you know, I, I think there is some value. I think I think it's worth exploring further. Thanks,

Thanks, thanks, Lucy. Does anyone have any questions?

If there are no more questions, I will end this, uh, uh, session now.

[Analyst]: No, I had a comment on two things. One was, if you guys can come up with a clear dividend policy for us to appreciate. You obviously are following the best practices when it comes to communicating to investors, laying out your plans, and delivering on those plans. I think what would be helpful is to come up with a clear dividend policy. It could be a payout ratio. Just for the market to appreciate how to look at the company, both from the growth and dividend perspective. The fact that Mr. Marhoon is on this call, I mean, I know sometimes it's not in the management's hand, it's in the board's hand. This is one feedback that I had for the board to consider, where you can articulate a dividend policy for the investors where there's some clarity.

[Analyst 4]: No, I had a comment on two things. One was, if you guys can come up with a clear dividend policy for us to appreciate. You obviously are following the best practices when it comes to communicating to investors, laying out your plans, and delivering on those plans. I think what would be helpful is to come up with a clear dividend policy. It could be a payout ratio. Just for the market to appreciate how to look at the company, both from the growth and dividend perspective. The fact that Mr. Marhoon is on this call, I mean, I know sometimes it's not in the management's hand, it's in the board's hand. This is one feedback that I had for the board to consider, where you can articulate a dividend policy for the investors where there's some clarity.

[Analyst]: My second comment is, you mentioned that part of senior management compensation is linked to net profit. Again, in the interest of best practices and what's happening globally, just a comment again for the board to appreciate, is that maybe part of that, instead of net profit, it could be linked to stock prices. That's another thing I just wanted to lay out here on the call.

[Analyst 4]: My second comment is, you mentioned that part of senior management compensation is linked to net profit. Again, in the interest of best practices and what's happening globally, just a comment again for the board to appreciate, is that maybe part of that, instead of net profit, it could be linked to stock prices. That's another thing I just wanted to lay out here on the call.

Questions have no I I had a comment on 2 things 1 was you know if you guys can come up with a clear dividend policy for us to appreciate you know uh you know you obviously are following the best practices when it comes to communicating to investors you know, laying out your plans and delivering on those plans. I think what could be helpful is to come up with a clear dividend policy? It could be a payout payout ratio as long, you know, just for the market to appreciate how to look at the company, both from the growth and dividend perspective. So the fact that Mr. Maroon is on this call, I mean, I know sometimes it's not in the Management's hand, it's in the board's hand but this is 1 feedback that I had for the board to consider where you can articulate the dividend policy for the investors. But there's some clarity and my second comment is you know, you mentioned that part of Senior Management compensation is linked to net profits. But again in the interest of best practices and what's happening in globally, just a comment again for the boat to appreciate is that maybe part of that, you know, instead of net profit, it could be linked to stock prices, you know?

So that's another point I just wanted to lay out here on the call.

Mohammed Ajmal Basha: Thank you. Thank you very much, Mr. Abbas. Regarding your second point, it will be considered. Stock prices instead of the dividends, this will be considered. We'll study it, we'll validate, and we'll see. As far as the dividend policy is concerned, yes, dividend policy is one of the very important policies.

Marhoon Mubarak Darwish Al Oweisi: Thank you. Thank you very much, Mr. Abbas. Regarding your second point, it will be considered. Stock prices instead of the dividends, this will be considered. We'll study it, we'll validate, and we'll see. As far as the dividend policy is concerned, yes, dividend policy is one of the very important policies.

Uh, thank you. Thank you very much, Mr. B, regarding the second Point. Uh, it will be considered, uh, stock prices instead of the independence. This will be considered, we will. We'll study it. We'll, uh, but it is and we'll see as far as the dividend policy is concerned. Yes, dividend policy is 1 of the very important.

Marhoon Mubarak Darwish Al Oweisi: I think almost finished or in the process of approving it. The management have prepared their proposal revised by the AC, and it is on its way and process for the board to approve it. Once it's approved, then we can share. We hope that's going to be promising, and it can give all our investors that light for them, so they can appreciate and they can base their forecast and the way how they want to invest and see how it is going. The dividends policy, Inshallah, it's going to be there soon.

Policies that we have just, uh, I think almost finished on the process of approving it. AC, the management have, uh, prepared, uh, their proposal revised by the AC, and it is on...

[Analyst]: Thank you, Mr. Marhoon, and appreciation for you to attend these calls. One of the few, I think, board members who actually does this, so much appreciated because you know how the investors are looking at the company, the kind of questions we ask the management. When you're in your meeting.

[Analyst 4]: Thank you, Mr. Marhoon, and appreciation for you to attend these calls. One of the few, I think, board members who actually does this, so much appreciated because you know how the investors are looking at the company, the kind of questions we ask the management. When you're in your meeting.

On its way and in process for the board to approve it. Once it's approved, then we can, we can share by Q2. Uh, we hope that's going to be promising, and it can give, uh, all our industrials, uh, that lead for them, so they can appreciate and they can, uh, build their forecasts and, uh, the way how they want to invest and see how it is going. But the dividends policy, uh, inshallah, that's going to be there soon.

Marhoon Mubarak Darwish Al Oweisi: We do, and we really appreciate. We really appreciate.

[Analyst]: Thank you.

[Analyst 4]: Thank you.

Marhoon Mubarak Darwish Al Oweisi: All the questions.

[Analyst]: Okay. Thank you. Good luck.

[Analyst 4]: Okay. Thank you. Good luck.

Thank you, Mr. Maroon, and uh, appreciation for you attending these calls. You know, you're one of the few, I think, board members who actually does this, so much appreciated because you know how the investors are looking at the company, the kind of questions we ask the management. So, you know when you're in your meetings, we really appreciate you. Thank you.

Marhoon Mubarak Darwish Al Oweisi: Rest assured that we are all here for you.

[Analyst]: Thank you. Thank you very much.

[Analyst 4]: Thank you. Thank you very much.

Okay, thank you. Good luck. Let's make sure that we are all here for you.

Mohammed Ajmal Basha: Yeah, Richard, you have a question? Thank you. Thank you very much. We're closing the meeting now. Thanks a lot.

Thank you. Thank you very much.

You have a good day.

Thank you. Thank you very much. This concludes the meeting now.

Thanks a lot.

Marhoon Mubarak Darwish Al Oweisi: Thank you.

[Analyst]: Thank you.

[Analyst 4]: Thank you.

Marhoon Mubarak Darwish Al Oweisi: Thanks.

Thank you. Thank you. Thanks. Thanks.

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