Q1 2027 Transrail Lighting Ltd Earnings Call
Speaker #1: These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. I now hand the conference over to Mr. Vikram Suryamanshi, thank you, and over to you, sir.
Speaker #2: Thank you, SRO. Good afternoon, and very warm welcome to everyone on behalf of Slip Capital. I'm pleased to welcome you all on the earnings call of Transrail Lighting Limited.
Speaker #2: The management with us here today for questions and answers session with the community. The management agreed and begin with the opening comments from the management.
Speaker #1: Sorry to interrupt, Vikram sir. Your voice is not clear.
Speaker #2: oh, sorry.
Speaker #1: No, sir, not clear yet.
Speaker #2: Okay, good. sorry, I don't know. I think there might be some net issue. Is it clear now?
Speaker #1: Yes, you may go ahead.
Speaker #2: Oh, sorry. Okay, sir. We'll begin.
Speaker #3: Thank you for joining us today for the Q1 for the year 27 earnings conference call. I'm pleased to begin the year 27 with another quarter of resilient operational and financial performance.
Speaker #3: Delivering year-on-year growth both in revenue and profitability. Despite continued geopolitical and economic uncertainties, along with supply chain disruption across certain markets, our disciplined execution, operational excellence, proven financial management, and strong governance have enabled us to deliver steady growth while maintaining healthy profitability.
Speaker #3: During the quarter, our revenue from operations grew by 5% year-on-year, to $1,736 crores, while EBITDA stood at $203 crores, resulting in a healthy EBITDA margin of 11.7%, which is more than the guidance of 11% given at the start of the year.
Speaker #3: Profit after tax increased 3% year-on-year to $1,08 crores, reflecting continued focus on bottom-line while the operating environment continues to witness certain challenges. as we already know, fuel, gas, logistics, labor disruption in certain markets, our diversified business model and execution skills and strong focus on operational efficiencies provided us with confidential navigate these headwinds effectively.
Speaker #3: accordingly, we remain committed to deliver healthy and sustainable profitability and maintain our EBITDA guidance of around 11% plus. Beyond the financial performance, the quarter marked several important strategic milestones for further strengthening our long-term growth platform.
Speaker #3: the milestones reflect our continued focus on strengthening execution capabilities, expanding our global footprint, and building a more diversified infrastructure platform. During the quarter, we commenced the commercial production of our eco-friendly tower manufacturing facility at Butiburi, Nagpur.
Speaker #3: Together with our ongoing expansion across the tower and conductor plants, this significantly strengthens our manufacturing capabilities as well as to execute our robust order book and capitalize on future growth opportunities.
Speaker #3: This quarter also strengthened our position in the Mina region, additionally we entered the Australian market for the first supply of monopoles. With this, our global footprint has now reached six continents, further we received a $500K HVDC order from a reputed India.
Speaker #3: we also strengthened our diversified EPC platform through acquisition of Dactyl Turnkey Project enhancing our capability on pooling tower EPC business. We see significant growth potential by rising investments in new nuclear and thermal power generation, along with rapid expansion of data centers.
Speaker #3: With this acquisition, we expanded our offering in NDCT towers to include IDCT tower solutions enabling us to serve a wider range of customer requirements.
Speaker #3: As of June 30, 2026, our unescaled order book was including our L1 orders of $400 crores, so principally we have $15,635 crores of orders in hand, which provides strong revenue visibility and reinforces confidence in our long-term growth trajectory.
Speaker #3: It is also noteworthy to note that we have quoted tenders worth more than $20,000 crores which will be declared in the coming quarter, that is quarter two, and may be part of quarter three.
Speaker #3: This is expected tender guidance pipeline gives us breathing, surpass the order intake plan as given in our guidance. In line with our commitment of delivering consistent value for our shareholders, the board has declared an interim division of $3 per equity share for the year 27.
Speaker #3: This reflects our confidence in the company's financial strength, healthy cash generation, and long-term growth prospects. Subsequently, through the quarter, the board has also approved a grant of $1,89,000 stock options under Transrail Lighting employee stock option plan 2023, reaffirming our commitment to attracting and retailing and rewarding our personal and talent.
Speaker #3: Another significant milestone during the quarter was an upgrade of our long-term traded facility India rating AA minus table from India rating. With this upgrade, now the company has long-term traded facility of AA minus both for Chris Hill and India rating covering limit approximately $7,500 crores.
Speaker #3: This reflects the strengthening of our business fundamentals, margin-led growth, and cash conservation and improving our balance sheet. Also, I must compliment the team we were honored by ETH Best Organization to work for 2026 award in recognition of a growth rate, training, and development industry reputation, workplace culture, and business ethics.
Speaker #3: In addition, we received the ROSPA Silver Award for Transmission Line Projects in Africa, reaffirming our commitment to high standards of health, safety, and operational excellence.
Speaker #3: We firmly believe that our people and our safety culture remain the foundation of executional excellence and long-term success. Looking ahead, the outlook of power transmission infrastructure sector remains highly encouraging both in India and globally.
Speaker #3: Global electricity demand is expected nearly double by 2050, driver-driven by electrification renewable engine energy adaptation AI data centers and rising energy consumption. In India, the national electricity plan envisages the addition of $1,91,000 circuit kilometers of transmission line by 2032, with the country's renewable energy ambitions of $500 gigawatt by 2030 and $900 gigawatt by 2026 require significant investments in grid expansion and evacuation infrastructure with directly impact the potential opportunity for us.
Speaker #3: The structural growth drivers coupled with rising capital expenditure by public and private developers provide EPC companies like us with robust pipeline of opportunities to grow sustainable and profitably.
Speaker #3: With a robust order book expanded manufacturing capacities, execution expertise, and healthy bidding pipeline, we remain confident of sustainable profitable growth while creating long-term value for our shareholders.
Speaker #3: now I would request Mr. Deepak Khandelwal our CFO to take you through the financial highlights.
Speaker #2: Thank you very much, sir. Good afternoon, everyone. I am happy to take you through our financial performance for Q1 FY 2027. Let me begin with the key financial highlights.
Speaker #2: Revenue from operations in Q1 FY 2027 was $1,736 crores, an increase of 5% year on year. EBITDA was INR 250 crores, with an EBITDA margin of 11.7%.
Speaker #2: The margin reflects project mix operating efficiencies and cost discipline. Profit before tax was INR 144 crores, and profit after tax was INR 108 crores, an increase of 3% year on year.
Speaker #2: The board of directors has declared an interim dividend of 150% amount to rupees 3 per equity share for the financial years 26, 27. Further, subsequent to the quarter, board has approved a proposal to raise a to $600 crores through a qualified institution placement QIP or other eligible securities subject to the necessary shareholders and regulatory approvals.
Speaker #2: Looking ahead, we remain focused on improving cash conversion, maintaining disciplined working capital management, and preserving a prudent capital structure while supporting the company's growth initiatives.
Speaker #2: With a robust order book strong execution pipeline and healthy bidding activity, we remain well positioned to deliver profitable growth, healthy cash flow, and sustained value creation while maintaining disciplined capital allocation.
Speaker #2: With that, we can open the floor for questions. Thank you.
Speaker #1: Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone.
Speaker #1: If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question.
Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue assembles. Ladies and gentlemen, you are requested to restrict your questions to two questions per participant.
Speaker #1: The first question comes from the line of Bala Murali Krishna from Oman Investment Advisors. Please go ahead.
Speaker #4: as a growth, first of all, the order book like the coming order is 1,000 crores. So as expected, as per the, 10,000 expectation that it is current financial year.
Speaker #4: So how's the.
Speaker #1: May I request you to please use a handset as your voice is not clear.
Speaker #4: Yeah. Mr. Bala, the voice
Speaker #2: is breaking. Can you please repeat the question?
Speaker #4: Yeah. I think it is okay now, right?
Speaker #2: Yeah, better.
Speaker #4: Yeah. Yeah. Yeah. On the order book front, sir. So I think we have a target of 10,000 crores incoming orders in the current financial year.
Speaker #4: So the quarter one seems to be slightly slower. So how do you, what is the industry trends? Is there any slowdown in the, tender outcomes or slowdown in the tender pipeline or our winning rate is a little bit decreased or what could be the reason for this, only 1,000 crores in order intake in this quarter?
Speaker #2: So if you, are aware of the EPC industry, there is a lag between the bidding and the order award. It can go as long as three to five months.
Speaker #2: So we have bid orders in Q1 worth 20,000 crores for domestic and international, and we believe that, we will have a good, win rate of 10 to 15%, which will rectify in Q2 and Q3.
Speaker #2: And our overall order intake guidance remains the same. We will look at 10,000 plus crores of new orders this year.
Speaker #4: Okay. Okay. I think on the execution front also, slightly lower than expectations in this quarter. So where do you think that from Q2 onwards the pace will improve?
Speaker #2: Of course. Of course. We maintain a guidance of 20% revenue growth for this year. And as you know, the Q1 and H1 is slow for EPC industry.
Speaker #2: In fact, our 1,700 crores of, order, revenue is one of the best we have done on the first quarter. In fact, in the year 25 first quarter, we grew by 5% on the annualized basis.
Speaker #2: We grew by 29.5%. So this is a trend which we will catch up. Of course, there have been some disruptions in supply chain, and which has impacted our manufacturing and therefore the revenue, and which we will catch up in Q2 for sure.
Speaker #4: And lastly, on this QAP part, sir, so I missed the initial remark. Maybe you would have told. So what is the, what are our plans to do this QAP fundraising?
Speaker #2: So the, fundraising is predominantly an enabling resolution right now. We have a subcommittee in evaluating various market conditions and opportunities. And this will also help us in our, cash flow management.
Speaker #2: So this is right now, work in progress. And in the next call, we can definitely tell you the plan going forward.
Speaker #4: Okay. Thanks a lot. Have a good od day.
Speaker #2: Thank you.
Speaker #1: Thank you. The next question comes from the line of Kartike Agrawal from Equity Capital. Please go ahead.
Speaker #3: hello sir. Congratulations on the extremely good results.
Speaker #2: Thank you.
Speaker #3: So I wanted to know, can you elaborate a bit on why the quarter didn't see the top-line growth as we have been guiding on?
Speaker #2: Yeah. So top-line growth, as I just mentioned in the discussion, in the previous, speaker, growth happens based on the order execution plan, the engineering readiness, and the startup.
Speaker #2: So normally, we have grown by 5%, and this is the best first quarter we've had, all in the history of Transrail. they were supply chain disruptions in our factory, as you know, diesel, LDO, and, certain amount of delays have happened for, procurement.
Speaker #2: And with the global disruptions which happened in the first quarter, we still have maintained and grown, which is very commendable. And we feel that Q2 and Q3 will be much better in terms of our guidance, which we are still maintaining at 20% plus.
Speaker #3: Yeah. Right.
Speaker #2: Yeah. Yes. 20% year on year is the guidance we maintain.
Speaker #3: Okay. Sir, also, there are any pending loans to be collected in the books? Which have not been collected for some time now. And, can you please detail it out if possible?
Speaker #2: what did you say? Please repeat. Pending what?
Speaker #3: Pending loans to be collected on the books.
Speaker #2: Notes. Loans.
Speaker #3: Books. Loans. Yes. Pending loans on the books.
Speaker #2: No, all are, recoverable and, as per the agreement, we are going to collect whatever loans we have given. These are, especially to Burberry. Which is the related party.
Speaker #2: So there is no issue.
Speaker #3: Okay. Thank you.
Speaker #2: Okay. Thank you. Kartike.
Speaker #1: Thank you. The next question comes from the line of Viraj Mahadevia from MoneyGrow India. Please go ahead.
Speaker #3: So thank you, sir, for, the results and, stable results and the well-managed working capital and rookies. Given that the business ha is on track for performance and order wins and the business is not leveraged as the promoter group considered, you know, the company doing a buyback, to take advantage of the undervaluation in the share price and underperformance since IPO.
Speaker #2: So, I, I think the question is, a little, complicated. We have no such intentions as of now.
Speaker #3: Right. Okay. Thank you.
Speaker #2: Thank you.
Speaker #1: Thank you. The next question comes from the line of Nihal Shah from Prudent Corporate Advisory. Please go ahead.
Speaker #3: Yes, sir. Thank you for the opportunity. So, as we have, good operating cash flows and, the balance sheet as well looks, pretty stable right now.
Speaker #3: So why are we, planning to raise capital?
Speaker #2: The QIP, basically we are raising for long-term, working capital requirement and other things. So that is, quite possible. And, just to, take the market, it isn't just enabling provision.
Speaker #2: So let the approvals come and then we will, plan further.
Speaker #3: Okay. So, the question, basically was that are we planning any greenfield expansion, moving ahead as well? Because, I guess a new factory has come on, stream has started manufacturing, I guess, only two or three months back.
Speaker #3: We have some, room there as well for expanding. So are we, looking two, three years ahead of line and trying to acquire some assets right now only?
Speaker #2: No, we are not planning to look at any greenfield acquisition as of now. This is, as we said, it is for our working capital and also for seeing as enabling provision what kind of opportunity is available in the market and globally.
Speaker #2: So therefore, this is predominantly planning as a strategic plan for the future.
Speaker #3: Okay.
Speaker #2: Future horizon can be one year, two years. To be utilized.
Speaker #3: Okay. Thank you very much.
Speaker #2: Thank you, Nihal.
Speaker #1: Thank you. The next question comes from the line of Vishal Jean from Mass Ventures. Please go ahead. Hello, Mr. Vishal. Can you hear me?
Speaker #2: Vishal, we can't hear you. can you hear us?
Speaker #1: As there's no response, we'll move on to the next participant. The next question comes from the line of Teejas Khandelwal from Prudent Equity. Please go ahead.
Speaker #3: Hello. I'm audible.
Speaker #1: Can you hear us?
Speaker #1: Yes. Please go ahead.
Speaker #3: Yeah. So, tha-thank you for the opportunity, sir. I wanted to know the, margin guidance for this year, FY27.
Speaker #2: margin guidance. Margin 11%. Okay. Margin guidance. Okay. So we have said that, we will look at, 11% plus guidance and we've reached, the first quarter is 11.7%.
Speaker #2: So we maintain a 11% guidance for the year, which is, one of the best in the industry.
Speaker #3: Okay, sir. And, I've noticed that, our tax rate has been on the higher side historically. So, can we expect 25% tax rate or, it will be the same?
Speaker #2: this quarter we have been at 25% tax rate and, so it is normalized right.
Speaker #3: Oh, okay. Okay. Thank you.
Speaker #1: Thank you. The next question comes from the line of Vishal Jean from Mass Ventures. Please go ahead.
Speaker #2: Hello. I'm audible now? Yeah, Vishal, you are.
Speaker #1: Yeah. That time, I think there was some hiccup. Sorry. just wanted to understand, there was some, notification on exchange that, there is some changes in the MOA that you, have put in and you want to get into some newer areas like drones and, defense, DESS, etc.
Speaker #1: So can you throw light on that?
Speaker #2: So, this is predominantly, as we said, we're looking at strategic, opportunities going forward. And, there is a huge potential of these, products we have mentioned.
Speaker #2: Now, it is for us to pick and choose and see what is right fit for us in terms of business. And therefore, this is a evaluation process which we are currently looking at.
Speaker #2: best and data centers we are keen to go ahead if you see our investors' presentation. It is already mentioned that it is something we are looking at in terms of seed marketing in the next few months.
Speaker #2: So therefore, as a company, not only are we looking at our current portfolio, but we're looking at expansion and growth for new products also.
Speaker #1: So, just wanted to touch upon. Have we made any, tie-ups or, in discussion with anyone regarding any of the areas that we are, think to go on?
Speaker #1: Or it is is it too early for that?
Speaker #2: No. For, data centers, we are as I said, seed marketing means we are meeting customers and understanding the market. And discussions are happening on various products.
Speaker #2: So this is very infancy stage, but we need to have a provision to approach these products and services which we are doing.
Speaker #1: Okay. And lastly, the fund that we are raising, are we planning to put some of the fund for these newer areas whenever it comes to?
Speaker #2: So it depends on the situation, the opportunity, and the margin profile. And obviously, we are looking at products as I said, the EPC for data centers and best EPC.
Speaker #2: So we will take it as we go along. And obviously, it is helping our cash flow and growth. Plus, new products as in when we are ready for it.
Speaker #1: Okay. Thank you. All the best.
Speaker #2: Thank you.
Speaker #1: Thank you. Before we take the next question, a reminder to all the participants to ask a question. Please press star and one. I repeat, to ask a question, please press star and one.
Speaker #1: The next question comes from the line of K. Rajesh, an individual investor. Please go ahead.
Speaker #4: Yeah. Thanks for taking my question. actually, my question was also on the same lines related to the notification. recent notification of announcing, looking at opportunities in the, BESS and defense.
Speaker #4: So, I just wanted to understand, are we like, are we forming a group or bringing in people, to enhance the capabilities on this?
Speaker #2: yes. We have a strategic, management division which has people who look at opportunities. And as we progress on a specific vertical, we build the subject matter experts in that vertical.
Speaker #2: For example, EPC for data centers are best. And work of, is happening in that direction.
Speaker #4: Yeah. Thank you for answering the question and congratulations for the number.
Speaker #2: Thank you.
Speaker #4: Thank you.
Speaker #1: Thank you. The next question comes from the line of Parve Bansal from Blink Investment. Please go ahead.
Speaker #5: Hello. I'm audible.
Speaker #2: Yes, very much.
Speaker #5: Congratulations to the management for posting such good margins. Instead of, 11, 11.5, we posted 11.7. That's amazing. So, my question is on the Capex plan.
Speaker #5: So as, as far as I remember, in the last PPT, you said that the conduct conductor, Brownfield, was gonna be completed by quarter one, FY27.
Speaker #5: So what happened there? Why the Capex is taking more time? What, what exactly are so I understand the execution part on the supply chain and everything I understand.
Speaker #5: But Capex is very much in, you know, in the domestic market. So what happened there?
Speaker #2: Yeah. So we are actually the difference between Q1 and Q2 is only, month or two. So what we have done is that the factory phase one is ready.
Speaker #2: And we have calibrated all the equipment. There are certain, approvals required from the various, approving authorities. And we are confident in Q2, we will start this.
Speaker #5: Okay. Perfect. And same goes for the, Greenfield as well?
Speaker #2: The Greenfield is already starting. The Tower factory in Butiburi, Nagpur, as I read out in my opening statement, has already started. On April 24th.
Speaker #5: Okay. Okay. Good. So.
Speaker #2: Thank you.
Speaker #5: my second question is, so I have one more question.
Speaker #2: Yeah, please, please.
Speaker #5: my second question is on, you know, the so it's on, page five of the PPT. Oh, sorry, page four of the PPT. So it says that, you know, kilometers of conductor supply.
Speaker #5: So it says 2,31,000. So as far as I remember, the so all the PPTs that you upload every quarter, so according to that, according to, you know, there could be some amount added to this.
Speaker #5: This is I believe this is cumulative to the four-decade history of the company. So I believe 5,000, 6,000 kilometers of conductor supplies is added in this PPT.
Speaker #2: So this is a.
Speaker #5: So last time I cons it added number,
Speaker #2: from the previous presentation, we have added that and cumulatively shown you the number.
Speaker #5: Yeah, yes, cumulatively shown. Perfect.
Speaker #2: Yeah. So it's cumulative compared with every quarter we will add it.
Speaker #5: But if you compare that with the PPT provided in February, so February to June, we got around 20,000 or 21,000, if I'm not wrong, 21,000 conductor supply.
Speaker #5: That is not possible. That in three months, we were able to supply 21,000 kilometers of conductor.
Speaker #2: I will have to check this data. normally, we supply around, 10-odd thousand kilometers.
Speaker #5: Okay.
Speaker #2: In a quarter. So let me just check it out. And we'll come back to you. Our investor relations will give you the data.
Speaker #5: Also, I want one more clarification. What is the difference between the kilometers of conductor supplies and the circuit kilometer transmission line constructed? So suppose you are, you know, supplying 6,000 kilometers, but you're, you know, the circuit kilometer is only incremental the difference is like 900 or 1,000.
Speaker #5: So could you explain me what's the difference between the two?
Speaker #2: Circuit kilometer means one circuit covers three phases, R, Y, B. So that, all three phases, once completed, are called circuit kilometer, whereas conductor supply is in running kilometer.
Speaker #2: So one running kilometer will be conductor supplied for running kilometer.
Speaker #5: So basically, one circuit kilometer is equivalent to three kilometers of conductor supply.
Speaker #2: It also depends because design of the tower, if it is a hexa, then it is 6 into 3. If it is a quad, then it is 4 into 3.
Speaker #2: It is twins and 2 into 3. So it equally depend upon the design of the line. So circuit kilometer is R, Y, V, 3, depending upon the type number of conductors in per phase.
Speaker #5: Okay. Thank you so much. All the best.
Speaker #2: Thank you.
Speaker #1: Thank you. The next question comes from the line of Atharv, an individual investor. Please go ahead.
Speaker #5: thanks for taking my questions. Am I audible?
Speaker #2: Yes, very much. Thank you.
Speaker #5: Okay. My question say my question is on contract assets. So it is quite a large part of our balance sheet. Could you help us understand what this mainly consists of?
Speaker #5: And is there any meaningful amount that's been outstanding for a long time? Or related to disputed claims? Or do you expect any credit losses?
Speaker #5: And historically, have you experienced any material collection delays write-offs on these assets?
Speaker #2: the contract asset doesn't mean anything which is disputed or delayed. It includes the dependency retention, TOC retention, and unbilled revenue. Unbilled revenue derived from the India AS circulation of the POSEM and retention is very much recoverable once the lines are getting completed and contractual terms are getting over.
Speaker #2: So in contract assets, if anything is doubtful, we are providing for the credit impairment for the same. Similarly, as we have been providing in the receivable.
Speaker #2: So all contract assets which is depicted here are recoverable.
Speaker #5: So there have been a delay in some collections. Otherwise, we are actually very good in terms of, focus and collection process. Okay. And also, could you please help us understand, the broad profile of counterparties behind these contracts?
Speaker #5: And as exec execution picks up, do you expect these assets to stay around the current levels as a percentage of revenue? Or should we see some improvement in it?
Speaker #2: it is going to increase because retention is increasing due to higher revenue per quarter. And so there is going to be slightly increase com as we have been increasing in the revenue.
Speaker #5: Okay. And the counterparties behind these, are these government utilities and multilateral funded projects entirely?
Speaker #2: Yeah. Yes. Yes. All multilateral and, private and government, government parties.
Speaker #5: Okay. Thank you.
Speaker #2: Thank you.
Speaker #1: Thank you. The next question comes from the line of Palash, an individual investor. Please go ahead.
Speaker #3: Hey, hi. So, firstly, congratulations to Martin for really super this quarter. but on the revenue side, as you said during the call that, you tend to actually get 20% revenue as you quoted during your previous call.
Speaker #3: With that, sir, the main thing that's really troubling the investors here is the share underperformance because the share price is actually down almost 100%.
Speaker #3: And is there some way you're planning to get more investors? You know, big institutions onboard? Or you're planning to flag off the company to mutual funds?
Speaker #3: Something that can really figure out and help the share price here.
Speaker #2: so that's a good question. Our performance on revenue will definitely improve on quarter on quarter. You know that the market sentiments today with the geopolitical situation is soft, in India.
Speaker #2: And we truly believe that, as we progress and we deliver better margins and results, we will see an improvement all around. So we are pretty confident that things will improve from where we are.
Speaker #2: As a company, and create more value for our stakeholders.
Speaker #3: Okay. So that do answer my question to an extent. But at the same point in time, as we all know, sir, that, the share price is correlative to the investors that are there onboard with the company.
Speaker #3: Is the FII, the mutual funds, and the other big ticket investors are we actually planning to get those and tell them that the revenue that we are quoting every time on big channels and everywhere on the media is something that you're achieving every time?
Speaker #3: Because I guess, though you're there, you're everywhere, you're there on CNBC, you're there on ET, but the same point in time, I see less investors coming in the company.
Speaker #3: then the sole reason, I guess, the share price is just not behaving the way it should. Irrespective of good results.
Speaker #2: that's a very intelligent observation. I respect that. So as you know, we are looking at a QIP. And that's basically institutional investors. So you will see the profile of the investors definitely.
Speaker #2: We are hoping should move in the right direction.
Speaker #3: Truly, sir. Thank you for pointing it out.
Speaker #2: Yeah.
Speaker #1: Thank you. Before we take the next question, ladies and gentlemen, you are requested to restrict your questions to two questions per participant. I repeat, you are requested to restrict your questions to two questions per participant.
Speaker #1: The next question comes from the line of Ritesh Bhagwati, from Alpha Plus Capital. Please go ahead.
Speaker #2: thanks for taking my question. so my question pertains to our geographic mix. like as I see, you know, our overseas revenues have come down from 1,000 crores last year to 600 crores this quarter.
Speaker #2: So just want to, first of all, understand, like, what countries are contract has stopped that has led to this. That's first part of the question.
Speaker #5: So I talked about order intake? Or you talking about revenue?
Speaker #2: In terms of the revenue.
Speaker #5: Okay. So our revenue mix is, principally domestic is around 65% and 35% is international. And that's the way, we look at the, growth plan.
Speaker #5: Normally, 60/40. International will pick up in the next few months. There have been some projects which have got delayed because of the economic, disruptions globally.
Speaker #5: Particularly in lieu of diesel and, various input availability in different countries. So, we are pretty confident that a 20% guidance will happen on revenue.
Speaker #5: And both domestic and international will deliver the numbers.
Speaker #2: Okay. And, second part, on the same, point, can you tell us how much of the 60/40 crores of international backlog is currently not built?
Speaker #2: Like, either because of the mobilization or the clients not paying?
Speaker #5: Can you repeat the question? 600 crores of?
Speaker #2: No. what I'm asking is, how much of the 60/400 crores of international backlog is not being built at this point in time? Either because of the mobilization?
Speaker #5: No, no, no. These are projects which have a timeline of 24 months to 30 months. And everything in EPC is planned based on the execution commitment and the contract requirements of the client.
Speaker #5: So this will take at least 18 months to, to 24 months to consume, in terms of our contractual obligations. So we are very much on track on execution of this order book.
Speaker #2: Okay. Thanks a lot. That's my point.
Speaker #5: Yeah. Thank you.
Speaker #1: Thank you. The next question comes from the line of Sunil Gojwani, from Vekay Investments. Please go ahead.
Speaker #3: Good afternoon, sir. Am I audible?
Speaker #2: Yes, very much. Sunil, thank you.
Speaker #3: Okay. sir, I'd like to confirm that, with your 20% guidance, our FY27 turnover comes around 8,300 crores. If we have executed about 1,700 crores, which brings us to the run rate of about 2,200 to 2,300, crores per quarter.
Speaker #3: So do you think we can execute at that rate and get to that run rate?
Speaker #2: Yes, very much. Because our H2 normally is much higher. And Q2 also, we are very buoyant that the numbers you mentioned for the quarter will be achieved.
Speaker #2: And obviously, every project every execution planning and the delivery is under various clusters and leaders. And we are confident that we will, look at these numbers going forward.
Speaker #2: Our tower capacity has gone up. So our supply chain for our projects will be improved in this quarter and next quarter. So the capacity to produce and deliver to execute is very much in place.
Speaker #2: And we are confident to achieve these numbers.
Speaker #3: Okay. And secondly, sir, keeping the geopolitical issues in mind, things have quite as much settled now. And do you think the margins have a little bit of upside bias, which you had mentioned in your last call, that we will maintain 11%?
Speaker #3: And if things settle, there is an upward bias? Do you see that happening?
Speaker #2: So as I said, we did achieve 11.7% in Q1. And 11% plus is what we're looking at. Now, how we end the year is something I can't predict.
Speaker #2: But definitely, 11 plus is what we're looking at.
Speaker #3: Okay. And lastly, very quickly, sir, the order book right now is about 16,000 crores. We'll execute about 8,2300 crores in this year. And we are looking at an intake of 10,000 crores.
Speaker #3: So our closing should be close to 17, 18,000 crores. Closing order book? Is that correct understanding?
Speaker #2: Yes. Very much. In fact, I have stated that in my discussion with various TV channels. So very much, you are absolutely right.
Speaker #3: Okay. Okay. Okay. Thank you, sir. Thank you. All the best for the execution. And please execute as per your commitment.
Speaker #2: Yes, yes, yes. And we, by the way, we have maintained our commitment last year of 30% growth. The previous year, to that. So we, as a team, Transrail, we are committed to this growth.
Speaker #3: Great, sir. Great. So the cash flows also are extremely good last, year. And, we hope to see it again.
Speaker #2: Yes. Thank you for your confidence.
Speaker #3: Thank you. Thank you, sir.
Speaker #1: Thank you. Before we take the next question, a reminder to all the participants to ask a question. Please press star and one. I repeat, to ask a question, please press star and one.
Speaker #1: The next question comes from the line of Bala Murali Krishna from Oman Investment Advisors. Please go ahead.
Speaker #5: Bala, welcome back.
Speaker #2: Yeah. Thanks. Yeah. Thank you, sir. Thanks for the opportunity again. So, the, sir, with Australia, monopole project, h-how would be the opportunity or the, the industry, is?
Speaker #5: so we are doing, seed marketing and we are looking at Australia selectively. For, monopoles and towers. This is a initial initiation. we will see how to further grow this business in Australia.
Speaker #5: we're looking at long-term, almost 10,000 circuit kilometers is required in that country. So how do we capitalize on this opportunity? We are working on that.
Speaker #2: Okay. So, on the last part, so I'd like to congratulate you on the commitments you are providing in the call and the commitment to those commitments.
Speaker #2: Even the people are, interesting you to give better EBITDA margin guidance. You know the business, how it will perform based on your tenders for you are sticking to your guidance and you are executing well within the guidance.
Speaker #2: So I'd like to congratulate on this, sir. Keep continuing on this.
Speaker #5: Yes, Bala, for our audience and stakeholders, we have to be fair and realistic. And we are still one of the better, margin providers in the industry.
Speaker #5: And hopefully, we should do better than, 11% plus.
Speaker #2: Yeah. Thank you, sir. Thank you so much.
Speaker #5: Thank you.
Speaker #1: Thank you. The next question comes from the line of Srishti Lulla and Individual Investor. Please go ahead.
Speaker #4: Good afternoon, Yami.
Speaker #5: Yes, please go ahead. Yeah.
Speaker #4: yes. I think you already said on the call before, but if you could just, reiterate on the net debt and EBITDA, because the net debt to EBITDA margin has almost doubled this quarter.
Speaker #5: Yeah.
Speaker #3: So, actually, net debt has increased, on account of, some delayed collections. And, working capital, has been deployed more. In the business, which is going to be normalized in Q2.
Speaker #3: And we are expecting all those to be realized in Q2. So it will be normalized. And it, very on quarter to quarter. So but it will adjust, overall in, March for sure.
Speaker #4: So it should be back at 0.33 by year end?
Speaker #3: Yes. Yes, yes. That's our stated direction.
Speaker #4: Okay. And any guidance on what could be the working capital rate?
Speaker #3: So working capital rate, we were 81 last year. As, our CFO just mentioned, there have been some delays in collections. Obviously, because of the disruptions globally and locally.
Speaker #3: So we feel that we will be the same level or improve from 81 and we'll be sub 81 below. So we are very much focused on this.
Speaker #3: This is one of our strengths. And we will continue to focus on this. Srishti, did I answer your questions?
Speaker #1: As there's no response, we'll move on to the next participant. The next question comes from the line of Utsav Shah from Valcue Investment Advisory Private Limited.
Speaker #1: Please go ahead.
Speaker #5: hi, sir. Am I audible?
Speaker #3: Yes. Very much, Utsav.
Speaker #5: Yeah. Thank you for the opportunity. so my question was around, the MOA that you expanded. So in the drone segment, what exactly are we targeting?
Speaker #5: Are we planning to become a subsistence supplier or a platform assembly company? Could you throw light on that specific segment?
Speaker #3: So basically, this opportunity is for mapping and survey. this is not looking at heavy, you know, load-bearing, drones. So it is in the infancy stage right now.
Speaker #3: As I said, these are, you know, opportunities we're exploring. And within the business group and us, and therefore, how to utilize these opportunities, we will further, inform as we go along.
Speaker #5: So more towards, commercial applications rather than defense, right?
Speaker #3: Yes, yes. Absolutely right.
Speaker #5: Okay. Okay. Okay. Thank you.
Speaker #1: Thank you. The next question comes from the line of Karthikey Agarwal from Equity Capital. Please go ahead.
Speaker #5: Hello, sir.
Speaker #3: Yeah. Welcome back, Karthikey.
Speaker #2: Yeah. Hi, sir. Hi. So I wanted a bit more detail on the loan on the books. to the Burberry company you mentioned. The amount and the time we are expecting it would be repaid in.
Speaker #3: it is 80 crore rupees loan. and it will be repaid before September 2026. That is the agreement.
Speaker #2: September, right?
Speaker #3: Yeah.
Speaker #5: So it is 34 months. Right now. And that's the plan we are working on.
Speaker #2: Okay. So how long has it been on the books, sir?
Speaker #3: For, three years by this time.
Speaker #2: Okay. So it's, how much of the money has been repaid, if any estimate I can?
Speaker #3: We have already received 30 crore, during the last year. And we are, charging the interest as well. So both interest and loan will be repaid by, September 30th.
Speaker #2: Okay. Thank you, sir. Thank you.
Speaker #5: Thank you.
Speaker #2: Yes.
Speaker #1: Thank you. The next question comes from the line of Hemal and Individual Investor. Please go ahead.
Speaker #2: Sir, thank you, sir, for the opportunity. I just have one question. Maybe you already addressed it. How much of the Bangladesh book is still in your order book?
Speaker #2: Or is it completed?
Speaker #3: So, our Bangladesh book is almost complete. Out of 4,500 crores, only 300 crores is left, which we will complete in the next three months.
Speaker #2: And are you receiving, money as per your timeline?
Speaker #3: Yes, yes. Very much. This project is a national interest. And we have been given the privilege to focus and deliver this project on time.
Speaker #3: And therefore, the cash flows are good.
Speaker #2: Okay, sir. That's it. That's it from me. Thank you.
Speaker #3: Thank you.
Speaker #1: Thank you. The next question comes from the line of Utsav Shah from Valcue Investment Advisory Private Limited. Please go ahead.
Speaker #5: hi, sir. I just wanted a clarification. so the company announced a 203 crore capex plan in May. so could you just guide on as to how much, will be invested in the current year and FY 27, and how much in FY 28?
Speaker #3: So this 200 crores is predominantly for tools and plans to execute our projects, both in domestic and international. And it is going to be used in a staggered manner, quarter on quarter.
Speaker #3: So I would say 70-odd percent would be utilized this year, and the balance will go to next year.
Speaker #5: Okay, sir. Perfect. Thank you.
Speaker #3: Thank you.
Speaker #1: Thank you. That was our last question. And I would now like to hand the conference over to the management for closing comments. Thank you.
Speaker #1: And over to you, sir.
Speaker #3: So, thank you, the participants on this conference. It has been, something which, we are, proud of in terms of the manner in which we are looking at the growth in the year 27.
Speaker #3: And as we mentioned, quarter one being, in a marketplace where the global disruptions are something which are, impacting the whole industry. And this has been the highest ever quarter growth in the history of Transrail.
Speaker #3: And we are going to better this quarter on quarter. So, to all our stakeholders, we believe that, our guidance is strong. And we'll deliver the same.
Speaker #3: So thank you for your time, and attending our call.
Speaker #5: Thank you very much.
Speaker #3: Thank you.
Speaker #1: On behalf of Philip Capital, that concludes this conference. Thank you for joining us. And you may now disconnect your line.
