Q1 2027 Kilburn Engineering Ltd Earnings Call

August 17, 2026

Speaker #1: Good day, ladies and gentlemen. Welcome to the Kilburn Engineering Limited Q1 FY27 earnings conference call. As a reminder, all participant lines will be in listen-only mode.

Operator: Good day, ladies and gentlemen. Welcome to the Kilburn Engineering Limited Q1 FY27 earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the management's opening remarks. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I will now hand the conference over to Mr. Anand Jayaram from SKP Securities Limited. Thank you. Over to you, sir.

Operator: Good day, ladies and gentlemen. Welcome to the Kilburn Engineering Limited Q1 FY 2027 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the management's opening remarks. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I will now hand the conference over to Mr. Anand Jairam from SKP Securities Limited. Thank you. Over to you, sir.

Speaker #1: There will be an opportunity for you to ask questions after management's opening remarks. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touch-tone phone.

Speaker #1: Please note that this conference is being recorded. I will now hand the conference over to Mr. Ananth Dyaram from SKP Securities Limited. Thank you.

Speaker #1: I know which you sir.

Speaker #2: Good afternoon, ladies and gentlemen. I am pleased to welcome you all to this financial results conference call on behalf of Kilburn Engineering and SKP Securities.

Anand Jayaram: Good afternoon, ladies and gentlemen. I am pleased to welcome you all to this financial results conference call on behalf of Kilburn Engineering and SKP Securities. We have with us Mr. Amritanshu Khaitan, Chairman, Mr. Ranjit Lala, Managing Director, Mr. Sachin Vijaykar, Chief Financial Officer, Mr. Vijay Shanker Karta, Managing Director, M E Energy Private Limited, and Mr. Rakesh Monga, Whole-time Director, Monga Strayfield Private Limited. We will have the opening remarks from Mr. Ranjit Lala, followed by a Q&A session. Thank you, and over to you, Mr. Lala.

Anand Jairam: Good afternoon, ladies and gentlemen. I am pleased to welcome you all to this financial results conference call on behalf of Kilburn Engineering and SKP Securities. We have with us Mr. Amritanshu Khaitan, Chairman, Mr. Ranjit Lala, Managing Director, Mr. Sachin Vijaykar, Chief Financial Officer, Mr. Vijaysanker Kartha, Managing Director, M E Energy Private Limited, and Mr. Rakesh Monga, Whole-time Director, Monga Strayfield Private Limited. We will have the opening remarks from Mr. Ranjit Lala, followed by a Q&A session. Thank you, and over to you, Mr. Lala.

Speaker #2: We have with us Mr. Amruthanshu Khetan, Chairman; Mr. Ranjit Lala, Managing Director; Mr. Sachin Vijaykar, Chief Financial Officer; Mr. Vijay Shankar Karta, Managing Director, ME Energy Private Limited; and Mr. Rakesh Monga, Whole-Time Director, Monga Streyfield Private Limited.

Speaker #2: We will have the opening remarks from Mr. Ranjit Lala, followed by a Q&A session. Thank you, and over to you, Mr. Lala.

Speaker #3: Thank you, Anand. Good afternoon, everyone, and thank you for joining us. I would like to begin by acknowledging that Q1 FY27 was a quarter where revenue performance was below the level we would have ideally targeted.

Ranjit Lala: Thank you, Anand. Good afternoon, everyone, and thank you for joining us. I would like to begin by acknowledging that Q1 FY27 was a quarter where revenue performance was below the level we would have ideally targeted. However, we want to put the performance of the company into the right context. The primary issue in the quarter was not deterioration in the underlying demand environment, but the timing of the customer deliveries and deferment of certain project executions into subsequent quarters. At the same time, the geopolitical situations has resulted in longer decision-making cycles for some customers and projects. Importantly, we have continued to see healthy inquiry activities across our businesses, and we have already secured approximately INR 190 crores of order inflows in the current financial year till date at the group level. While Q1 revenue was impacted by timing, our trust in the underlying business quality remains intact.

Speaker #3: However, we want to put the performance of the company into the right context. The primary issue in the quarter was not deterioration in the underlying demand environment, but the timing of the customer deliveries and the postponement of certain project executions into subsequent quarters.

Speaker #3: At the same time, the geopolitical situation has resulted in longer decision-making cycles for some customers and projects. Importantly, we have continued to see healthy inquiry activities across our businesses, and we have already secured approximately ₹190 crores of order inflows in the current financial year to date at the group level.

Ranjit Lala: At the same time, the geopolitical situations has resulted in longer decision-making cycles for some customers and projects. Importantly, we have continued to see healthy inquiry activities across our businesses, and we have already secured approximately INR 190 crores of order inflows in the current financial year till date at the group level. While Q1 revenue was impacted by timing, our trust in the underlying business quality remains intact.

Speaker #3: So, while Q1 revenue was impacted by timing, our trust in the underlying business opportunity remains intact. Referring to the Q1 performance, for the quarter, consolidated revenue from operations was approximately ₹117 crore, EBITDA stood at ₹24.2 crore, translating into an EBITDA margin of 20.1%.

Ranjit Lala: Referring to Q1 performance, for the quarter, consolidated revenue from the operations was approximately INR 117 crores. EBITDA stood at INR 24.2 crore, translating into EBITDA margin of 20.1%. For us, maintaining a 20% operating margin in a quarter with lower revenue is significant. It reflects the great discipline we have brought into the project execution. Our objective is to have sustainable business maintaining healthy and sustainable profitability. Let me explain why we remain confident about H2. The most important point I would like to state is that we expect FY27 to be significantly second half weighted. We have visibility from our existing order book, expected order book arising from deferred order intake, scheduled customer deliveries, and projects that have moved into the subsequent quarters. As these projects enter execution, we expect the revenue trajectory to improve meaningfully through H2.

Speaker #3: For us, maintaining a 20% operating margin in a quarter with lower revenue is significant. It reflects the great discipline we have brought into project execution.

Speaker #3: Our objective is to have a sustainable business, maintaining healthy and sustainable profitability. Let me explain why we remain confident about H2. The most important point I would like to state is that we expect FY27 to be significantly second-half weighted.

Ranjit Lala: Let me explain why we remain confident about H2. The most important point I would like to state is that we expect FY27 to be significantly second half weighted. We have visibility from our existing order book, expected order book arising from deferred order intake, scheduled customer deliveries, and projects that have moved into the subsequent quarters. As these projects enter execution, we expect the revenue trajectory to improve meaningfully through H2.

Speaker #3: We have visibility from the existing order book, expected order book arising from deferred order intake, scheduled customer deliveries, and projects that have moved into the subsequent quarters.

Speaker #3: As these projects enter execution, we expect the revenue trajectory to improve meaningfully through H2. Accordingly, we continue to maintain our FY27 expectation of around ₹700 crore on a consolidated revenue basis, with EBITDA of 20%.

Ranjit Lala: Accordingly, we continue to maintain our FY27 expectation of around INR 700 crores on a consolidated revenue basis with EBITDA of 20%. We will remain focused on increasing our order books and committed on efficient execution. Order pipeline and market opportunity. The second area I would like to state is the opportunity pipeline. Today, we continue to have an inquiry pipeline in the range of INR 4,000 crores across sectors and geographies at the group level. Obviously, an inquiry pipeline should not be equated with an order book. Conversion depends on customer decisions, project economics, timings, and our own commercial discipline. But the breadth of this pipeline gives us the confidence that the addressable market for the group has sustained continuously.

Speaker #3: We will remain focused on increasing our order book and are committed to efficient execution. Now, regarding the order pipeline and market opportunity: the second area I would like to discuss is the opportunity pipeline.

Speaker #3: Today, we continue to have an inquiry pipeline in the range of ₹4,000 crore across sectors and geographies at the group level. Obviously, an inquiry pipeline should not be equated with an order book—conversion depends on customer decisions, project economics, timings, and our own commercial discipline.

Ranjit Lala: Today, we continue to have an inquiry pipeline in the range of INR 4,000 crores across sectors and geographies at the group level. Obviously, an inquiry pipeline should not be equated with an order book. Conversion depends on customer decisions, project economics, timings, and our own commercial discipline. But the breadth of this pipeline gives us the confidence that the addressable market for the group has sustained continuously.

Speaker #3: But the breadth of this pipeline gives us the confidence that the addressable market for the group has sustained continuously. We are particularly encouraged by the opportunities in fertilizers and nuclear, where we noticed maximum traction, and the rapidly developing data center infrastructure ecosystem, which will generate more business in quarters to come.

Ranjit Lala: We are particularly encouraged by the opportunities in the fertilizer and nuclear, where we notice maximum traction, and the rapidly developing data center infrastructure ecosystem, which will generate more business in quarters to come. We are seeing increased engagement with our global customers and EPC companies, and our objective is to convert this opportunity into a large and more diversified order book over the coming quarters. We still continue to target the group order inflows at INR 800 crores in the current financial year. Next, I would like to address the capacity expansion. The next phase of our strategy is not only about winning more orders, it is about ensuring that Kilburn has the capacity and capabilities to execute them efficiently. We are therefore investing across the group as informed earlier.

Speaker #3: We are seeing increased engagement with our global customers and EPC companies, and our objective is to convert this opportunity into a larger and more diversified order book over the coming quarters.

Speaker #3: We still continue to target group order inflows at ₹800 crore in the current financial year. Next, I would like to address the capacity expansion.

Ranjit Lala: We still continue to target the group order inflows at INR 800 crores in the current financial year. Next, I would like to address the capacity expansion. The next phase of our strategy is not only about winning more orders, it is about ensuring that Kilburn has the capacity and capabilities to execute them efficiently. We are therefore investing across the group as informed earlier.

Speaker #3: The next phase of our strategy is not only about winning more orders; it is about ensuring that Kilburn has the capacity and capabilities to execute them efficiently.

Speaker #3: We are therefore investing across the group as informed earlier. Kilburn Engineering and ME Energy are expanding their manufacturing and execution capabilities which are at advanced stage and expected to complete by end October this year.

Ranjit Lala: Kilburn Engineering and M E Energy are expanding their manufacturing and execution capabilities, which are at advanced stage and expected to complete by end October this year. At Monga Strayfield, we are in the process of expanding metal sheet fabrication capacity, details of which will be disclosed over a period of time. The capacity investments being made today are designed with a medium-term objective to enable the group's aspirations of INR 1,000 crores annually. Thus, we see this platform-building phase for the company for the next level of growth. All in all, our approach to the growth will be as follows. We will be focusing on three things. First, converting our strong opportunity pipeline into orders. Second, executing these orders efficiently on schedule. Third, maintaining our margin discipline. The transformation of Kilburn over the last few years has been driven by organic growth and strategic acquisitions, which will continue.

Speaker #3: At Monga Streyfield, we are in the process of expanding metal sheet fabrication capacity, details of which will be disclosed over a period of time.

Speaker #3: The capacity investments being made today are designed with a medium-term objective to enable the group’s aspirations of ₹1,000 crore annually. Thus, we see this as a platform-building phase for the company for the next level of growth.

Ranjit Lala: Thus, we see this platform-building phase for the company for the next level of growth. All in all, our approach to the growth will be as follows. We will be focusing on three things. First, converting our strong opportunity pipeline into orders. Second, executing these orders efficiently on schedule. Third, maintaining our margin discipline. The transformation of Kilburn over the last few years has been driven by organic growth and strategic acquisitions, which will continue.

Speaker #3: All in all, our approach to growth will be as follows. We will be focusing on three things. First, converting our strong opportunity pipeline into orders.

Speaker #3: Second, executing these orders efficiently and on schedule. And third, maintaining our margin discipline. The transformation of Kilburn over the last few years has been driven by organic growth and strategic acquisitions, which will continue.

Speaker #3: We now have a broader platform, a diversified customer base, and access to larger growth markets. Our next objective is to scale this operation in a disciplined and sustainable manner.

Ranjit Lala: We now have a broader platform, a diversified customer base, and access to larger growth markets. Our next objective is to scale this operation in a disciplined and sustainable manner. Going forward, our immediate priorities are very clear. Deliver the revenue from the existing order book efficiently, accelerate H2 execution, convert the INR 4,000 crore pipeline into opportunities or into orders selectively and rationally with a target of INR 800 crores, and maintain the EBITDA margins of 20%. That's all from my side. With this, I hand over to Karan.

Speaker #3: So, going forward, our immediate priorities are very clear: deliver the revenue from the existing order book efficiently, accelerate H2 execution, and convert the ₹4,000 crore pipeline into opportunities or into orders—selectively and rationally.

Speaker #3: With a target of ₹800 crores, and maintaining EBITDA margins of 20%. That's all from my side. With this, I hand over to...

Speaker #1: Thank you. We will now begin the question and answer session. Each participant is requested to limit himself or herself to a maximum of two questions.

Operator: Thank you. We will now begin the question and answer session. Each participant is requested to limit himself or herself to a maximum of 2 questions. Time permitting, we shall revert for any further questions that you may have that remain unanswered. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Participants who wish to ask a question, please press star and 1. We take the first question from the line of Sagar Shah for Spark Capital PWM. Please go ahead.

Speaker #1: Time permitting, we shall revert with any further questions that you may have that remain unanswered. Anyone who wishes to ask a question may press star and one on their touchtone telephone.

Speaker #1: If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use their handsets while asking a question.

Operator: If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Participants who wish to ask a question, please press star and 1. We take the first question from the line of Sagar Shah for Spark Capital PWM. Please go ahead.

Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue assembles. Participants who wish to ask a question, please press star one.

Speaker #1: We will take the first question from the line of Sagar Shah from Spark Capital, PWM. Please go ahead.

Speaker #3: So yes, first of all, thanks for the opportunity. Sir, I had a couple of questions actually. The first question is that in this quarter, we got around ₹19 crore of subscription money. Actually, we had further diluted our share capital.

Sagar Shah: Yes. First of all, thanks for the opportunity. Sir, I had around a couple of questions actually. The first question was that in this quarter, we got around INR 19.8 crores of subscription money actually, but we had further diluted our share capital. If I'm not wrong, we have completely subscribed actually the promoters as well as the non-promoters to all the shares that have been allotted at INR 425. So what is the future plan now for the utilization of this money? Is this going to go for some another inorganic route, or maybe you're utilizing this money for working capital requirements. Any take on that one? The second question was related to your order book outlook. You just highlighted that we are targeting around INR 800 crores of order inflow in this particular year.

Speaker #3: Now, if I'm not wrong, we have completely subscribed, actually—the promoters as well as the non-promoters—to all the shares that have been allotted at 425.

Speaker #3: So what is the future plan now for the utilization of this money? Is this going to go for another inorganic route, or maybe you are utilizing this money for working capital requirements?

Sagar Shah: So what is the future plan now for the utilization of this money? Is this going to go for some another inorganic route, or maybe you're utilizing this money for working capital requirements. Any take on that one? The second question was related to your order book outlook. You just highlighted that we are targeting around INR 800 crores of order inflow in this particular year.

Speaker #3: Any take on that one? And the second question was related to your order book outlook. You just highlighted that we are targeting around 800 crores of order inflow in this particular year.

Speaker #3: And in this quarter, it was hurting to see, even at these difficult times, actually we got around ₹135 crores worth of actual order inflow in this particular quarter.

Sagar Shah: And in this quarter, it was heartening to see even at these difficult times, we got around INR 135 crores worth of actual order inflow in this particular quarter. What gives us the confidence that we will be actually getting to that number in the remainder of 9 months of FY27? Secondly, what is the exposure to the Middle East in terms of our opening as well as the order backlog, which stands at around INR 485 crores as on date.

Speaker #3: So, what gives us the confidence, actually, that we'll be actually getting to that number in the remainder of nine months of FY27?

Speaker #3: And secondly, what is the exposure to the Middle East actually, in terms of our opening as well as the order backlog, which stands at around ₹485 crores as on date?

Speaker #2: So Ranjit, if I can address the first point—this is Amritanshu here. The fundraise which has been completed has strengthened the balance sheet of the company.

Amritanshu Khaitan: Ranjit, if I can address the first point. This is Amritanshu here. The fundraise which has got completed has strengthened the balance sheet of the company. This was subscribed by investors and the promoter family also. Today, we are sitting on a net debt free balance sheet. The idea is to fund part of the CapEx, which is being planned to enable the company to cater to over INR 1,000 crores of revenue in the coming years. We will be ready for the growth, which we believe is the way forward for the company. Regarding acquisitions, we keep looking out for opportunities, both organic and inorganic way. In the inorganic side, if any opportunity does fructify, we will ably inform the investor community. A growing company like us always has aspirations for adding new verticals adjacent to our line of business, which can increase our overall business opportunity to grow.

Speaker #2: This was subscribed by investors and the promoter family also. Today, we are sitting on a net debt-free balance sheet. The idea is to fund part of the capex, which has been planned.

Speaker #2: To enable the company to cater to over ₹1,000 crore of revenue in the coming years. So, we will be ready for the growth, which we believe is the way forward for the company.

Speaker #2: Regarding acquisitions, we keep looking out for opportunities, both in organic and inorganic ways. On the inorganic side, if any opportunity does materialize, we will promptly inform the investor community.

Amritanshu Khaitan: Regarding acquisitions, we keep looking out for opportunities, both organic and inorganic way. In the inorganic side, if any opportunity does fructify, we will ably inform the investor community. A growing company like us always has aspirations for adding new verticals adjacent to our line of business, which can increase our overall business opportunity to grow.

Speaker #2: A growing company like us always has aspirations. So, adding new verticals adjacent to our line of business can, you know, increase our overall business opportunity to grow.

Speaker #2: So we will look at that. But we are also very excited about organic growth, because there are areas where Kilburn is present and where its subsidiaries are present, and we see a lot of opportunity for growth in those areas.

Amritanshu Khaitan: We will look at that. But we are also very excited about organic growth because there are areas where Kilburn is present and where its subsidiaries are present, and we see a lot of opportunity for growth in those areas. As Mr. Lala mentioned, we are seeing fertilizer and nuclear being very strong sectors going forward in the coming 18 months. For our subsidiary, we are seeing a lot of inquiry and potential for a lot of equipment, basically storage equipment, which Monga Strayfield's sheet metal division makes for the data center infrastructure growth, which is coming not only in India but globally. Our entry into the ferroalloy segment is allowing us to bolster any energy growth plans as we are seeing multiple inquiries in the ferroalloy space where earlier, waste heat recovery systems were not present.

Speaker #2: As Mr. Lala mentioned, we are seeing fertilizer and nuclear being very strong sectors going forward in the coming 18 months. And for our subsidiary, we are seeing a lot of inquiries and potential for a lot of equipment, basically storage equipment, which Mungas Treefields Sheet Metal Division makes.

Amritanshu Khaitan: For our subsidiary, we are seeing a lot of inquiry and potential for a lot of equipment, basically storage equipment, which Monga Strayfield's sheet metal division makes for the data center infrastructure growth, which is coming not only in India but globally. Our entry into the ferroalloy segment is allowing us to bolster any energy growth plans as we are seeing multiple inquiries in the ferroalloy space where earlier, waste heat recovery systems were not present. But now with the kind of size of equipment plants being put up by that sector, we are seeing good opportunity for us. Fundraise will be used in those ways.

Speaker #2: For the data center infrastructure growth, which is coming not only in India but globally, our entry into the Ceres Alloy segment is allowing us to bolster any energy growth plans. We are seeing multiple inquiries in the Ceres Alloy space, where earlier waste heat recovery systems were not present. But now, with the kind of size of equipment and plants being put up by that sector, we are seeing good opportunity for us.

Amritanshu Khaitan: But now with the kind of size of equipment plants being put up by that sector, we are seeing good opportunity for us. Fundraise will be used in those ways.

Speaker #2: So, the funds raised will be used in those ways.

Speaker #3: Okay, sir. And the first question.

Sagar Shah: Okay, sir. And the first question.

Speaker #2: Yeah, so actually Mr. Ketan has already answered the question partially. As I mentioned, we have a strong pipeline of, you know, ₹4,000 crore across the organization.

Ranjit Lala: Well, Mr. Khaitan has already answered the question partially. As I mentioned, we have a strong pipeline of INR 4,000 crores across the organization, and we are seeing a lot of traction in the fertilizer segment. We already have bagged a few orders and some more in the offering. At the same time, we have lots of inquiries coming in from the ferroalloy business as well. You mentioned about the Middle East. Well, Middle East, we do not have any orders currently from Middle East, but we have a couple of large inquiries based in that region. In fact, we were already at the final stage of commercial negotiation before the conflict had begun. That still continues. Hopefully, as the war subsides, we will have discussions going forward over there. It is not only the inquiries from Middle East.

Speaker #2: And we are seeing a lot of passion in the fertilizer segment. We have already bagged a few orders, and some more are in the offing.

Speaker #2: At the same time, we have lots of inquiries coming in from the Ferro Alloy business as well. You mentioned about the Middle East. Well, Middle East, we don't have any we don't have any orders currently for Middle East, but we have a couple of large inquiries you know based in that region.

Ranjit Lala: You mentioned about the Middle East. Well, Middle East, we do not have any orders currently from Middle East, but we have a couple of large inquiries based in that region. In fact, we were already at the final stage of commercial negotiation before the conflict had begun. That still continues. Hopefully, as the war subsides, we will have discussions going forward over there. It is not only the inquiries from Middle East. The overall scenario has kind of deferred some of the decision making processes with some of the customers. That is taking a bit of a time.

Speaker #2: And in fact, we were already at the final stage of commercial negotiation before the, you know, the conflict had begun. And, you know, that still continues.

Speaker #2: So, hopefully, as you know, the war subsides, we will have discussions going forward over there. But it is not only the inquiries from the Middle East.

Speaker #2: The overall scenario has, you know, kind of differed some of the decision-making processes with some of our customers, so that's taking a bit of time.

Ranjit Lala: The overall scenario has kind of deferred some of the decision making processes with some of the customers. That is taking a bit of a time.

Speaker #3: Okay. So you see the things normalizing by an H2F at 27, as you have highlighted in the presentation?

Sagar Shah: Okay. You see the things normalizing by H2 FY27, as you have highlighted in your presentation?

Speaker #2: Hopefully. You know we see a spurt in the inquiries and discussions and suddenly you know some unexpected things happen in that region. And suddenly we find that things are getting delayed.

Ranjit Lala: Hopefully. We see a spurt in the inquiries and discussions. Suddenly, some unexpected things happen in that region, and suddenly we find that things are getting delayed. That is what has been the observation.

Speaker #2: So, that's what has been the observation.

Speaker #3: Okay. Okay. Fine, sir. Thank you. Thank you so much.

Sagar Shah: Okay. Fine, sir. Thank you. Thank you so much.

Speaker #1: Thank you. Participants who wish to ask a question, please start, and then we will take the next question from the line of Bhavya Nahar from Tamora Investments. Please go ahead.

Operator: Thank you. Participants who wish to ask a question, please press star and 1. We take the next question from the line of Bhavya Nahar from Tamora Investment. Please go ahead.

Speaker #4: Hi, good afternoon. So I understand that certain large-sized orders that you are expecting—let's say in the waste heat recovery system in the ONG space, etc.—have been delayed.

Bhavya Nahar: Hi, good afternoon. I understand that certain large sized orders that you are expecting, let us say in the waste heat recovery system in the O&G space, et cetera, have been delayed. Can you give us an update on where they stand, whether they are still in the pipeline, and what is the expected timeline to receive those orders?

Speaker #4: Can you give us an update on where they stand? Like, whether they're still in the pipeline and what's the expected timeline to receive those orders?

Ranjit Lala: For Kilburn, some of the inquiries which are in the drying solutions business, I expect that some of them would be closed, hopefully, by the end of this quarter and early next quarter. For waste heat recovery, may I ask Mr. Vijay Karta to give a view on the status of inquiries?

Speaker #2: For Kilburn, some of the inquiries, you know, which are in the drying solutions business, I expect that some of them will be closed, hopefully, by the end of this quarter.

Speaker #2: Yeah, and early next quarter. For waste heat recovery, may I ask Mr. Vijay Karta to give a view on the status of inquiries?

Vijay Shanker Karta: Hello, everybody. Vijay Karta here from M E Energy. We already have a very strong-

Vijaysanker Kartha: Hello, everybody. Vijay Karta here from M E Energy. We already have a very strong-

Speaker #4: Everybody, Vijay Karta here from Engineering. We already have a very strong...

Speaker #1: Vijay sir, I'm sorry to interrupt you, but your audio is not clear.

Ranjit Lala: Vijay, sir, sorry to interrupt you, but your audio is not clear.

Vijay Shanker Karta: Can you hear me? Hello?

Vijaysanker Kartha: Can you hear me? Hello?

Speaker #4: Can you hear me? Hello?

Speaker #2: Yeah, we can.

Ranjit Lala: Yeah. We can.

Speaker #4: Yeah. So we have a strong inquiry lineup for Allied Industries. We have to follow continuing. We are in optics, using a large waste heat-based power plant in Portland on a high.

Vijay Shanker Karta: Yeah. We have very strong inquiry lineup on our alloys industry. We are to follow through in the drying. We are also executing a large waste heat based power plant in Bhutan on a alloy-

Vijaysanker Kartha: Yeah. We have very strong inquiry lineup on our alloys industry. We are to follow through in the drying. We are also executing a large waste heat based power plant in Bhutan on a alloy-

Speaker #1: Vijay Sir, I'm sorry to interrupt you again. Your audio is still not clear.

Ranjit Lala: Vijay, sir. I am sorry to interrupt you again. Your audio is still not clear.

Speaker #2: Vijay, Vijay, I will take that question. I think you have a lot of background noise. If you can just move away and then address it.

Amritanshu Khaitan: Vijay, I will take that question. I think you have a lot of background noise. If you can just move away and then address it. I will just address this on ferroalloy. On M E Energy, we have a strong inquiry pipeline. With our entry with our Bhutan project for ferroalloy, we are in discussion with a couple of more potential inquiries in the space. As well as we have inquiries in the cement space and the steel sector. The steel sector is seeing a lot of expansion taking place. Due to that also, there is a potential large pipeline of multiple inquiries in the INR 10 to 15 crore segment for M E Energy addressing the steel sector.

Speaker #2: I'll just address this on Ceres Alloy. So, on energy, we have a strong inquiry pipeline. With our entry, with our Bhutan project for Ceres Alloy, we are in discussion with a couple more potential inquiries in the space.

Speaker #2: As well as, we have inquiries in the cement space and the steel sector. The steel sector is seeing a lot of expansion taking place.

Speaker #2: Due to that also, there's a potential large pipeline of inquiries—multiple inquiries in the ₹10 to ₹15 crore segment for any energy addressing the steel sector.

Vijay Shanker Karta: Okay. Thank you.

Bhavya Nahar: Okay. Thank you.

Speaker #4: Okay. Thank you.

Operator: Thank you. We take the next question from the line of Samir Chheda from Prince Polyplast Private Limited. Please go ahead.

Speaker #1: Thank you. We will take the next question from the line of Sameer Chera from Prince Polyplast Private Limited. Please go ahead.

Speaker #2: Hello. Yeah, I just wanted to know—you said that because of the decision-making lag in the war conditions, the inflow of orders is getting delayed.

Sameer Mahendra Chheda: Hello. I just wanted to know that you said that because of the decision-making lag in the war conditions, the orders inflow is getting delayed. I want to know, is the delivery, I mean, the order which we are executing, are the customers delaying the delivery of those if they want the products to be delivered later or how? Is that also getting affected?

Sameer Chheda: Hello. I just wanted to know that you said that because of the decision-making lag in the war conditions, the orders inflow is getting delayed. I want to know, is the delivery, I mean, the order which we are executing, are the customers delaying the delivery of those if they want the products to be delivered later or how? Is that also getting affected?

Speaker #2: So, I want to know about the delivery—in other words, the order that we are executing. Are the customers delaying the delivery of those? Do they want the products to be delivered later, or how?

Speaker #2: Is that also getting affected?

Speaker #4: Yes, that is correct.

Ranjit Lala: Yes, that is correct.

Amritanshu Khaitan: Yes, that is correct.

Speaker #2: Oh, yeah. Ranjit, you can take it.

Sameer Mahendra Chheda: Oh.

Sameer Chheda: Oh.

Ranjit Lala: Yeah. Ranjit, you can take it.

Amritanshu Khaitan: Yeah. Ranjit, you can take it.

Speaker #4: Yeah. So, you know, when you look at the execution cycle, there are various milestones. Some of these milestones are getting approvals from customers on the drawings, on the quality inspections, etc., etc.

Sameer Mahendra Chheda: Yeah.

Ranjit Lala: Yeah. When you look at the execution cycle, there are various milestones. Some of these milestones are getting approvals from the customers on the drawings, on the quality inspections, et cetera. In some places, we are seeing that customers are actually delaying this whole process, including approval of our engineering drawings and all. Overall, your execution cycle increases. Obviously, it slips over a quarter or more than that. That is what we are observing in three or four projects.

Ranjit Lala: When you look at the execution cycle, there are various milestones. Some of these milestones are getting approvals from the customers on the drawings, on the quality inspections, et cetera. In some places, we are seeing that customers are actually delaying this whole process, including approval of our engineering drawings and all. Overall, your execution cycle increases. Obviously, it slips over a quarter or more than that. That is what we are observing in three or four projects.

Speaker #4: And in some places, we are seeing that, you know, customers are actually delaying this whole process, including approval of our engineering drawings and all.

Speaker #4: So, overall, you know, the execution cycle increases, and obviously, you know, it slips over a quarter or more than that. So that's what we're observing in three or four projects.

Speaker #2: Okay. So we are targeting 700 crores by year-end. About 100 is done now. So, in spite of this delay which is happening, do you think you will still be able to get things through?

Sameer Mahendra Chheda: Okay. We are targeting INR 700 crores by year-end. About INR 100 crores is done now. In spite of this delay which is happening, do you think you will still be able to get things through? Because I think war has now become the new normal, and there is no quick resolution happening to those conditions.

Sameer Chheda: Okay. We are targeting INR 700 crores by year-end. About INR 100 crores is done now. In spite of this delay which is happening, do you think you will still be able to get things through? Because I think war has now become the new normal, and there is no quick resolution happening to those conditions.

Speaker #2: Because I think war has now become the new normal, and there is no quick resolution happening to those conditions.

Speaker #4: Right. So, as far as Kilburn is concerned, we are very clear that we don't have any holdups at our end. As soon as the orders come in, we start the execution.

Ranjit Lala: Right. As far as Kilburn is concerned, we are very clear that we do not have any holdups at our end. As soon as the orders come in, we start the execution. It is more at the customer's end. When you look at the current situation, where we stand as on middle of Q2, I expect a lot of activity to be having in terms of execution in the second half. That is why when you look at the weighted average, the second half looks heavier.

Speaker #4: It is, you know, more at the customer's end. And when you look at the current situation, like where we stand as of the middle of Q2, I expect a lot of activity to be happening in terms of execution in the second half.

Speaker #4: That's why, you know, when you look at the weighted average, the second half looks heavier.

Speaker #2: Got it. And the order pipeline, I think during last quarter, was approximately ₹4,000 crore. So,

Sameer Mahendra Chheda: Got it. The order pipeline, I think during last quarter was approximately INR 4,000 crores.

Sameer Chheda: Got it. The order pipeline, I think during last quarter was approximately INR 4,000 crores.

Speaker #4: That was the inquiry pipeline, sir. It still stands at 4,000 crores. But if you look at the closing order, that is around 485 crores.

Ranjit Lala: That was inquiry pipeline, sir.

Sameer Mahendra Chheda: Inquiry pipeline.

Sameer Chheda: Inquiry pipeline.

Ranjit Lala: Which still stands at INR 4,000 crores. If you look at the closing order-

Sameer Mahendra Chheda: Yeah

Sameer Chheda: Yeah

Ranjit Lala: that is around INR 485 crore.

Speaker #2: Got it. Got it. So.

Sameer Mahendra Chheda: Correct.

Sameer Chheda: Correct.

Speaker #4: And then we have received some more orders after that.

Ranjit Lala: And then we have received some more orders after that.

Speaker #2: Okay, so these are repeat orders from customers coming in, or are these new orders which we have bid for?

Sameer Mahendra Chheda: Okay. So these are repeat orders from customers coming in, or these are new orders which we have bid for?

Sameer Chheda: Okay. So these are repeat orders from customers coming in, or these are new orders which we have bid for?

Speaker #4: It's a combination. Like, the ones coming from fertilizer are the new orders, right? And, but the kind of dryers are similar in nature.

Ranjit Lala: It's a combination.

Sameer Mahendra Chheda: It's a combination.

Sameer Chheda: It's a combination.

Ranjit Lala: Like the ones coming from fertilizer are the new orders, right? But the kind of dryers are similar in nature, what you would find in any other chemical drying process. They're similar in nature, but the sectors could be new.

Speaker #4: What you would find in any other chemical drying process—they're similar in nature. But the sectors could be new.

Speaker #2: And is the cost escalation affecting the margins for the new orders?

Sameer Mahendra Chheda: Is the cost escalation affecting the margins for the new orders?

Sameer Chheda: Is the cost escalation affecting the margins for the new orders?

Speaker #4: See, when we take up an order, we have a certain fixed cost, yeah?

Ranjit Lala: See, when we take up an order, we have a certain fixed cost.

Sameer Mahendra Chheda: Okay.

Sameer Chheda: Okay.

Speaker #2: Okay.

Speaker #4: And as you know, we always book our raw material within the first 48 to 72 hours—80% of it. Now, if there is a delay from the customer's end, we endeavor to keep the customer informed that there is a certain escalation happening on account of delays at their end.

Ranjit Lala: As you know, we always book our raw material within first 48 to 72 hours, 80% of it. If there is a delay from the customer's end, we endeavor to keep the customer informed that there is a certain escalation happening on account of delays at their end. Okay?

Speaker #4: Okay?

Speaker #2: Okay.

Speaker #4: Well, normally, the behavior that you would have from a customer is that this is a fixed-cost contract, or a fixed-price contract, yeah? But we do our bit of, you know, due diligence to ensure if we can, you know, get a compensation for delay on their account.

Sameer Mahendra Chheda: Right.

Sameer Chheda: Right.

Ranjit Lala: The normal behavior that you would have from a customer is that this is a fixed cost contract or the fixed price contract. But we do our bit of due diligence to ensure if we can get a compensation for delay on their account.

Speaker #2: Good. That's it from my side. Thank you.

Sameer Mahendra Chheda: Good. That is it from my side. Thank you.

Sameer Chheda: Good. That is it from my side. Thank you.

Speaker #4: Thank you.

Ranjit Lala: Thank you.

Speaker #1: Thank you. Participants who wish to ask a question, please press star one. We will take the next question from the line of Daksh Malhotra from Aadriv Global.

Operator: Thank you. Participants who wish to ask a question, please press star and one. We take the next question from the line of Daksh Malhotra from ADRO GLOBAL. Please go ahead.

Speaker #1: Please go ahead.

Speaker #4: Yeah, hello, and thank you for this opportunity. So, I wanted to, you know, first check—we, in the presentation, had given our order book this quarter as 190, sorry, order inflow is Rs. 190 crore.

Daksh Malhotra: Yeah, hello, and thank you for this opportunity. I wanted to first check. In the presentation we had given our order book this quarter is INR 190. Sorry, order inflow is INR 190 crores. Our previous quarter order book was INR 467. We had executed INR 117. So the pending order book in hand is INR 540, is it?

Speaker #4: Our previous quarter order book was 467. We had executed 117. So the pending order book in hand is 540, is it?

Speaker #2: No, 190 is, till date, what we have issued. What we have issued during the quarter is 134.

Amritanshu Khaitan: No, INR 190 is till date what we have received. What we have received during the quarter is INR 134.

Daksh Malhotra: 134.

Speaker #4: 134.

Daksh Malhotra: 134.

Speaker #2: Yeah, most are June. Also, we have issued some orders. That is how it is 190.

Amritanshu Khaitan: Yeah. Post June also we have received some orders. That is how it is 190.

Speaker #4: Right, sir. And in the previous year, we discussed in Q4 that we were planning to grow at about 25% for the coming two to three years.

Daksh Malhotra: Right, sir. In the previous year, we discussed in the Q4 that we are planning to grow at about 25% for the coming 2, 3 years, and we also mentioned that FY28, we should be reaching INR 1,000 crores in terms of revenue. While INR 1,000 crores is there, FY28 is not there, and the growth from 25% projected for FY27 is reduced a little bit to say 10%, 12% odd. Is that understanding right? Would you like to throw some more light on what are we doing to sort of improve it? I understand various factors are playing their role for us not being able to grow at the pace we wanted to. Are we doing things differently to sort of improve from here apart from-

Speaker #4: And we also mentioned that by FY28, we should, you know, be reaching ₹1,000 crores in terms of revenue. Now, while ₹1,000 crores is there, FY28 is not there.

Speaker #4: And the growth from 25 percent projected for FY27 is reduced a little bit too, say 10, 12 percent odd. Is that understanding right? And would you like to, you know, throw some more light on what we are doing to sort of improve it?

Daksh Malhotra: Would you like to throw some more light on what are we doing to sort of improve it? I understand various factors are playing their role for us not being able to grow at the pace we wanted to. Are we doing things differently to sort of improve from here apart from-

Speaker #4: I understand various factors are playing a role in us not being able to grow at the pace we wanted to. But, are we doing things differently to sort of improve from here, apart from that?

Amritanshu Khaitan: If I can address that. See, in the kind of line of business Kilburn is in, we are dependent on lot of factors from the customer end, from the overall project, and we are part of most of the projects. We are not like a single product that is just gone and put in a plant. Currently, the kind of order mix we have, especially the nuclear jobs, the jobs which are related to Heavy Water Board, NPCIL, there are lots of permissions, lots of approvals which are required, which do take time.

Speaker #2: So if I can I can if I can address if I can address that, see, in the kind of line of business, Kilburn is in, we are dependent on a lot of factors from the customer end, from the overall project end.

Speaker #2: We are part of most of the projects. You know, we are not like a single product that is just gone and put in a plant.

Speaker #2: Currently, the kind of order mix we have, especially the nuclear jobs—the jobs which are related to the Heavy Water Board, NPCIL—there are lots of permissions, lots of, you know, approvals which are required, which do take time.

Daksh Malhotra: Yeah.

Speaker #2: They are taking longer than what the private sector jobs typically entail, while jobs of Kasale and other fertilizer companies are moving fast. So it's a mix of reasons.

Amritanshu Khaitan: They are taking longer than what the private sector jobs typically entail. While jobs of Kasali and other fertilizer companies are moving fast.

Amritanshu Khaitan: They are taking longer than what the private sector jobs typically entail. While jobs of Kasali and other fertilizer companies are moving fast. It is a mix of reasons. I think what we are trying to highlight is that the underlying business remains strong. We do not want to predict minute to minute kind of a revenue model because a lot of our jobs need certain milestones to be achieved to recognize revenue. We are guiding for seeing the current mix of orders, what we have.

Amritanshu Khaitan: It is a mix of reasons. I think what we are trying to highlight is that the underlying business remains strong. We do not want to predict minute to minute kind of a revenue model because a lot of our jobs need certain milestones to be achieved to recognize revenue. We are guiding for seeing the current mix of orders, what we have. We believe the company will still achieve a INR 700 crore plus kind of a revenue. But in the next 2 months, depending on what orders we get, depending how short cycle they are or long cycle they are, these numbers can definitely change. Why we have not given any guidance for FY28 is that we are highlighting, we are creating capacities across our different divisions to cater to INR 1,000 crore plus revenue.

Speaker #2: I think what we are trying to highlight is that the underlying business remains strong. We do not want to predict a minute-to-minute kind of revenue model, because a lot of our jobs need certain milestones to be achieved to recognize revenue.

Speaker #2: So we are guiding, seeing the current mix of orders that we have, we believe the company will still achieve a 700 crore-plus kind of revenue.

Amritanshu Khaitan: We believe the company will still achieve a INR 700 crore plus kind of a revenue. But in the next 2 months, depending on what orders we get, depending how short cycle they are or long cycle they are, these numbers can definitely change. Why we have not given any guidance for FY28 is that we are highlighting, we are creating capacities across our different divisions to cater to INR 1,000 crore plus revenue.

Speaker #2: But you know, in the next two months, depending on what orders we get, depending on how short cycle they are or how long cycle they are, these numbers can definitely change.

Speaker #2: The reason we have not given any guidance for FY28 is that we want to highlight that we are creating capacities across our different divisions to cater to ₹1,000 crore plus revenue.

Speaker #2: Now, depending on what order booking comes through till March of this year, our outlook for next year will be fairly clear. But where we remain confident is that we have a strong inquiry pipeline.

Amritanshu Khaitan: Now, depending on what order booking comes through till March of this year, our outlook for next year will be fairly clear. But where we remain confident is that we have a strong inquiry pipeline. The management is working very hard to build order wins in profitable sectors, focusing on export, focusing on sectors which are high growth in the coming years. That is why we are working on tying up with various EPC companies in the fertilizer space. We are tying up with EPC companies for the nuclear space. These, we believe, will generate substantial orders in the coming months.</seg <seg id="3">Our subsidiary, which is Monga Strayfield, is focusing on entering into new products for the drying sector as well as they are in the process of expanding their capacity in sheet metal fabrication substantially because there we are seeing a lot of growth opportunity as they service the data center infrastructure sector. That could be a very large opportunity. We would highlight the details in the coming quarters. Along with that, you have M E Energy, where the focus is growing the company beyond just traditional waste heat recovery sectors like cement. Our entry into ferrosilicon gives us a lot of confidence that we will be able to expand our order book to a substantial level in the coming quarters, thereby setting a growth trend for that company going forward. Consolidated, we believe that there are 5, 6 sectors which will drive strong growth in the coming quarters.

Speaker #2: The management is working very hard to build order wins in profitable sectors, focusing on exports, and focusing on sectors which are expected to see high growth in the coming years.

Speaker #2: And that is why we are working on tying up with various EPC companies in the fertilizer space. We are also tying up with EPC companies for the nuclear space.

Speaker #2: These, we believe, will generate substantial orders in the coming months. Our subsidiary, which is Munga Straitfield, is focusing on entering into new products for the drying sector, as well as in the process of expanding their capacity in sheet metal fabrication substantially.

Amritanshu Khaitan: Our subsidiary, which is Monga Strayfield, is focusing on entering into new products for the drying sector as well as they are in the process of expanding their capacity in sheet metal fabrication substantially because there we are seeing a lot of growth opportunity as they service the data center infrastructure sector. That could be a very large opportunity. We would highlight the details in the coming quarters. Along with that, you have M E Energy, where the focus is growing the company beyond just traditional waste heat recovery sectors like cement. So our entry into ferrosilicon gives us a lot of confidence that we will be able to expand our order book to a substantial level in the coming quarters, thereby setting a growth trend for that company going forward. Consolidated, we believe that there are 5, 6 sectors which will drive strong growth in the coming quarters.

Speaker #2: Because there, we are seeing a lot of growth opportunity as they service the data center infrastructure sector, and that could be a very large opportunity.

Speaker #2: We will highlight the details in the coming quarters. Along with that, do you have any areas where the focus is on growing the company beyond just traditional waste heat recovery sectors like cement?

Amritanshu Khaitan: Along with that, you have M E Energy, where the focus is growing the company beyond just traditional waste heat recovery sectors like cement. So our entry into ferrosilicon gives us a lot of confidence that we will be able to expand our order book to a substantial level in the coming quarters, thereby setting a growth trend for that company going forward. Consolidated, we believe that there are 5, 6 sectors which will drive strong growth in the coming quarters.

Speaker #2: So, our entry into ferrous alloy gives us a lot of confidence that we will be able to expand our order book to a substantial level in the coming quarters.

Speaker #2: Thereby setting a growth trend for that company going forward. So, consolidated, we believe that there are five or six sectors which will drive strong growth in the coming quarters.

Speaker #2: Steel is another sector where we are seeing a lot of expansion for any energy, and petrochem and oil and gas are also sectors for Kilburn Engineering.

Amritanshu Khaitan: Steel being another sector where we are seeing a lot of expansion for M E Energy and oil and gas being another sector for Kilburn Engineering. As a management, we are working on focusing on all these different verticals, adding more marketing strength to convert a lot of these inquiries. But once we win the order, everything is not under our control. As we mentioned, the type of jobs we do, they are very complicated, they take time for execution, a lot of approvals are required. There are times when jobs can shift a quarter or two quarters because of that reason. Secondly, a lot of our greenfield projects where we are giving equipment need land approvals, clearances. We have certain jobs from the carbon black sector where we got the order, but it is on hold because of certain environmental clearances and land acquisition, et cetera.

Speaker #2: So, as a management, we are working on focusing on all these different verticals, adding more marketing strength to, you know, convert a lot of these inquiries.

Speaker #2: But once we win the order, everything is not under our control. As we mentioned, the type of jobs we do—they are very complicated.

Speaker #2: They take time for execution. A lot of approvals are required, so there are times when jobs can shift a quarter or two quarters because of that reason.

Amritanshu Khaitan: There are times when jobs can shift a quarter or two quarters because of that reason. Secondly, a lot of our greenfield projects where we are giving equipment need land approvals, clearances. We have certain jobs from the carbon black sector where we got the order, but it is on hold because of certain environmental clearances and land acquisition, et cetera. These type of things can shift the execution cycle by a couple of months or two, three quarters, but at least the order is with us.

Speaker #2: Secondly, a lot of our greenfield projects where we are giving equipment need land approvals and clearances. So we have certain jobs from the carbon black sector where we got the order, but it's on hold because of certain environmental clearances.

Speaker #2: And you know, land acquisition, et cetera. So these types of things can shift the execution cycle by, you know, a couple of months or two to three quarters.

Amritanshu Khaitan: These type of things can shift the execution cycle by a couple of months or two, three quarters, but at least the order is with us.

Speaker #2: But at least the order is with us.

Speaker #4: Right. So typically, our margins in Kilburn are the highest. This time, we are hit on the margins given that Kilburn standalone has done relatively poorly.

Daksh Malhotra: Right. Typically our margins in Kilburn are the highest. This time we are hit on the margins given that Kilburn standalone has done relatively poorly. Is that the case?

Speaker #4: Is that the case?

Speaker #2: We have always been maintaining a 20-plus margin, which I think, in spite of the modest turnover, we have been able to maintain.

Sachin Vijaykar: We have always been maintaining a 20-plus margin, which I think in spite of the modest turnover also, we have been able to maintain because of cost discipline as well as execution discipline. That is what I think. We talk on a consolidated basis only because there is a lot of cross-selling also between the companies.

Speaker #2: Because of cost discipline as well as execution discipline. That is what I think. And we talk on a consolidated basis only, because there is a lot of cross-selling also.

Speaker #2: Between the companies.

Speaker #4: Okay. And in Q4, we discussed our cash flow situation, specifically operating cash flow. At this juncture, sir, if you could throw some light there as well?

Daksh Malhotra: Okay. In Q4, we discussed about the cash flow situation, that operating cash flow, we were running slightly behind. How is it at this juncture, sir, if you can throw some light there as well?

Speaker #2: In quite a few collections post-March, we have received, but more or less our data and other total net working capital position have not substantially changed.

Sachin Vijaykar: Quite a few collections post-March we have received, but more or less our debtors and other total net working capital position has not substantially changed, but it is better than what it was in the March quarter.

Speaker #2: But it is better than what it was in the March quarter.

Speaker #4: All right. Okay. Thanks.

Daksh Malhotra: All right. Okay. Thank you, sir.

Speaker #1: Thank you. Participants who wish to ask a question, please press star and one. Participants who wish to ask a question, please press star and one.

Operator: Thank you. Participants who wish to ask a question, please press star and one. Participants who wish to ask a question, please press star and one. We take the next question from the line of Sagar Shah from Spark Capital PWM. Please go ahead.

Speaker #1: We will take the next question from Sagar Shah with Spark Capital PWM. Please go ahead.

Speaker #5: Yes, sir. Thanks again for the opportunity. So my first question, sir, was related to our this designation of actually of two senior or two of our senior management personnel actually, Mr. Nitin Varadkar has purchase head.

Sagar Shah: Yes. Thanks again for the opportunity. My first question, sir, was related to this designation of two of our senior management personnel. Mr. Nitin Varadkar as Purchase Head and Mr. Dinesh Nikam. Now we have designated them as senior management personnel. Based on that, is there anything major to read on that? Are we planning to include them in the board and what is their importance and what is their role actually in the major decision-making and the order-making process of the company?

Speaker #5: And Mr. Dinesh, now you have designated them as senior management personnel. So based on that, sir, is there anything major to read into that?

Speaker #5: Means we are are we planning to include them in the board and what's their actually importance and what's their important what's their role actually in the major decision making and the order order making process of the company?

Speaker #2: Right. So, we have been designated as senior personnel in the organization. Nitin has been handling procurement for around four years, and Dinesh has been handling project management for, I think, now more than fourteen years.

Amritanshu Khaitan: Right. I will take that. So basically they have been designated as senior personnel in the organization. Nitin has been handling procurement for around 4 years, and Dinesh has been handling project management for I think now more than 14 years. They have grown in this company and recently they were also elevated. As a part of our, we have to declare who are the key people in the organization.

Speaker #2: Okay. They have grown in this company and recently they were also elevated. And as you know, as a part of our—you know, we have to declare who are the key people in the organization.

Speaker #2: Of course, as per every LODR rule, any people reporting one level below the CEO are to be included in the management list. That is the reason they have been SMPs.

Sachin Vijaykar: As per SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 rules, any people reporting one level below the CEO are to be included in the management list. That is the reason they have been S&Ps. That is the reason they have been named because they were promoted this year and they started reporting directly to the CEO.

Speaker #2: That is the reason they have been named, certainly. Because they were promoted this year, and they started reporting directly to the CEO. So there's no discussion about them being on the board.

Amritanshu Khaitan: There is no such discussion on them being on the board. But since they have a key role to play in the organization, it is mandatory to disclose.

Speaker #2: But since they have a key role to play in the organization, it's mandatory to discuss.

Speaker #5: Okay, okay. Sir, my second question is if you could just confirm for me—I think we are done with the equity fundraising.

Sagar Shah: Okay. Sir, my second question was, if you can just confirm me, I think we are done with the equity fundraising now with all those warrants being converted into shares. Is there any scope for further fundraising going ahead or are we done at least for the requirements of the funds actually at least for the next two years to achieve the INR 1,000 crores turnover?

Speaker #5: Now, with all these warrants being converted into shares, is there any scope for further fundraising going ahead, or are we done—at least for the requirements of the funds—at least for the next two years to achieve the 1,000 crore turnover?

Speaker #2: So, we are done with all the equity raising we needed to do. Our balance sheet has been completely strengthened, so as to achieve the ₹1,000 crore revenue and complete all the capex.

Amritanshu Khaitan: We are done with all the equity raising we needed to do. Our balance sheet has been completely strengthened. To achieve the INR 1,000 crore revenue, complete all the CapEx, we are very comfortable. We do not need to do any fundraising for that.

Speaker #2: We are very, very comfortable. We don't need to do any fundraising for that.

Sagar Shah: Okay. Thank you so much, sir. All the best for future.

Speaker #5: Okay. Thank you, sir, and all the best for the future.

Speaker #1: Thank you. Participants who wish to ask a question, please press star and one. We will take the next question from the line of Andre Purushottam from Cogito Advisors LLP.

Operator: Thank you. Participants who wish to ask a question, please press star and 1. We take the next question from the line of Andrey Purushottam from Cogito Advisors LLP. Please go ahead.

Speaker #1: Please go ahead.

Speaker #3: Yeah, hi. I want to apologize because I missed out on your opening comments, and I just came in about 10 minutes late. So, I had one question and a suggestion.

Andrey Purushottam: Yeah, hi. I want to apologize because I missed out on your opening comments and I just came in about 10 minutes late. I had one question and a suggestion, and if the question has already been answered, I will get briefed by others. You can just let me know. My question is very simple. What really led to the poor results last quarter? If you have already answered that, I will take it from someone else. My suggestion is very simple, that maybe you should stop talking about your inquiry pipeline, because that is a little misleading because many things can go wrong between an inquiry and order. If you can find outcomes to sharing data on the order book, it might be a little better both for you and for us as investors.

Speaker #3: And if the question has already been answered, I'll get briefed by others, so you can just let me know. My question is very simple.

Speaker #3: What really led to the poor results last quarter? If you have already answered that, I'll take it from someone else. And my suggestion is very simple.

Andrey Purushottam: My suggestion is very simple, that maybe you should stop talking about your inquiry pipeline, because that is a little misleading because many things can go wrong between an inquiry and order. If you can find outcomes to sharing data on the order book, it might be a little better both for you and for us as investors.

Speaker #3: Maybe you should stop talking about your inquiry pipeline, because that is a little misleading. As you know, many things can go wrong between an inquiry and an order.

Speaker #3: And if you can find answers to sharing data on the order book, it might be a little better both for you and for us as investors.

Speaker #2: Thank you. So your suggestion is taken. We normally inform on both the order intake, the current position, opening orders, and closing orders.

Ranjit Lala: Right. Your suggestion is taken. We normally inform on both the order intake, the current position, tracking orders, closing orders.

Speaker #3: Yeah. I know. I mean you know sometimes you know more information is actually less useful. You know in this case I'm just making the point that that maybe you shouldn't be sharing this you know.

Andrey Purushottam: Yeah, I know.

Ranjit Lala: And then-

Andrey Purushottam: I mean, sometimes more information is actually less useful. In this case, I am just making the point that maybe you shouldn't be sharing this. Just a suggestion for you to think about.

Speaker #3: Just a suggestion for you to think about.

Speaker #2: Yeah, sure. Yeah. We take your suggestion, you know, back into our system, and we will see how we can address it better.

Ranjit Lala: Yeah, sure. We take your suggestion back into our system, and we will see how we can address it better. As far as your first question is concerned, we do definitely address it in the opening remarks, but for your benefit, I will do it again. There is too much sound in the background. So basically, there was a deferment of order intake in the last quarter for a number of reasons, maybe due to some delayed decisions by the customers due to geopolitical reasons, and also there was a delay in some of the project executions. All this has led to a relatively lower revenue in the last quarter.

Speaker #2: Yeah. As far as the first question is concerned, it was definitely addressed in the opening remarks. But for your benefit, I will do it again.

Speaker #2: So basically, there has been too much sound in the background. Yeah. So basically, there was, you know, deferment of order intake in the last quarter.

Speaker #2: For a number of reasons. Maybe due to some delayed decisions by the customers because of geopolitical reasons, and also there was a delay in some of the project executions.

Speaker #2: So, all this has led to a relatively lower revenue in the last quarter.

Speaker #5: So, do we feel that these are

Andrey Purushottam: Do we feel that these are temporary, the geopolitical things, as someone said, has now become the new normal.

Speaker #3: Temporarily, the geopolitical things, as someone said, have now become the new normal.

Speaker #2: It is common again. It's geopolitical, as well as some decisions.

Ranjit Lala: It is a combination. It is geopolitical as well as some decision.

Speaker #3: Yeah. But as far as the other reasons or concerns due to delays, these usually sort themselves out over a period of quarters, right? So is that your...

Andrey Purushottam: Yeah. But as far as the other reasons are concerned, which is due to delays, these usually sort themselves out over a period of quarters, right?

Ranjit Lala: Right.

Andrey Purushottam: So is that your-

Ranjit Lala: And that's why-

Speaker #2: And that's why.

Andrey Purushottam: And because your-

Speaker #3: And because your.

Speaker #2: We expect that all this will be overcome in the coming quarter. And we expect that these, H2, will be—you know—will be higher on the revenue front.

Ranjit Lala: We expect that all this will be overcome in the current quarter.

Andrey Purushottam: Okay.

Ranjit Lala: We expect that H2 will be higher on the revenue front. We expect that.

Speaker #2: We expect that.

Speaker #3: Right. Right. Right. Okay. Thank you. Thank you.

Andrey Purushottam: Right. Okay. Thank you.

Operator: Thank you. Participants who wish to ask a question, please press star and 1. A reminder, participants who wish to ask a question, please press star and 1. Participants, if you wish to ask a question, please press star and 1. As there are no further questions, I would now like to hand the conference over to Mr. Ranjit Lala for the closing remarks.

Speaker #1: Thank you. Participants who wish to ask a question, please press * and 1. A reminder: participants who wish to ask a question, please press * and 1.

Speaker #1: Participants, if you wish to ask a question, please press star and one. As there are no further questions, I would now like to hand the conference over to Mr. Ranjit Lala for the closing remarks.

Speaker #2: Yeah. Thank you. Amin. So I would like to mention that you know in these difficult times we have only increased the engagement with our customers to ensure how we can push the order intake.

Ranjit Lala: Yeah, thank you, Anant. I would like to mention that in these difficult times, we have only increased the engagement with the customers to ensure how we can push the order intake. Whilst that is happening, we are focusing on two things. That we execute the current projects in a very disciplined way so that our margins do not get impacted. That is one. Secondly, focus on building the infrastructure which we will need to achieve the aspirational number of INR 1,000 crores. That is all from my end. Thank you to everybody for joining this call.

Speaker #2: Yeah. And while that's happening, we are focusing on two things: that we execute the current projects in a very disciplined way, so that our margins don't get impacted.

Speaker #2: That's one. And secondly, focus on building the infrastructure, which we will need to achieve the aspirational number of ₹1,000 crore. So that's all from my end.

Speaker #2: Thank you to everybody for joining this call.

Speaker #3: Thank you.

Andrey Purushottam: Thank you.

Speaker #1: Thank you, sir. On behalf of SKP Securities Limited that concludes the conference. Thank you for joining us. Ladies and gentlemen you may now disconnect your lines.

Operator: Thank you, sir. On behalf of SKP Securities Limited, that concludes the conference. Thank you for joining us. Ladies and gentlemen, you may now disconnect your lines.

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Q1 2027 Kilburn Engineering Ltd Earnings Call

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