GMM Pfaudler Earnings Call for Q4FY25 and Full Year

Summary

Highlights

• GMM Pfaudler's revenue for FY25 reached 3,199 crores with a significant EBITDA margin of 11.9% 💰.
• Facility closures in the UK and Hyderabad were strategic moves to cut costs and streamline operations 🏢.
• Their new Poland site supports the non-glass line business and offers cost advantages 🚀.
• India's segment showed a strong 17.4% EBITDA margin thanks to an effective transformation program 💪.
• Internationally, the business faces hurdles due to market uncertainties but has a solid starting backlog 📂.

Key Takeaways

• GMM Pfaudler achieved strong financial performance in FY25 with revenues hitting 3,199 crores 📈.
• Strategic facility closures in the UK and Hyderabad improved operational efficiency and profitability 🏭.
• A new low-cost manufacturing site in Poland was established to support European operations 🇵🇱.
• India's performance was robust, contributing significantly to the favorable margins and backlog 🎯.
• Despite challenges, the international business remains optimistic with efforts to increase order intake globally 🌎.

Overview

Chapters

• 00:00 - 00:30: Introduction The chapter introduces the conference call and sets up the context for the Q4 FY25 earnings call of GM for Limited. The speaker provides instructions for participating in the call, including how to ask questions and get assistance. Mr. Daval Rajut takes over the conference from Steve, extending a warm welcome to the participants. Meanwhile, the earnings presentation has been made available on the stock exchanges.
• 00:30 - 01:00: Management Introduction The chapter "Management Introduction" outlines the initial setup of a company meeting, introducing key members of the management team present. These include the Managing Director Mr. Tar Patel, the CEO of International Business Mr. Thomas Kell, the CEO of India Business Mr. Rasim Jooshi, CFO Mr. Alexander Pner, and Compliance Officer Miss Mitt Mata. The chapter foreshadows a performance overview of the company and a subsequent Q&A session, acknowledging a brief disclaimer relating to the presentation materials provided.
• 01:00 - 01:30: Disclaimer and Business Overview The chapter, titled 'Disclaimer and Business Overview,' emphasizes the presence of forward-looking statements in the company's communications. These statements pertain to business prospects and expected profitability and are subject to various risks and uncertainties, meaning actual results may significantly differ. The initial part of the call is transitioned to Mr. Tariff Pat, who is expected to provide a detailed performance overview, marking the significance of the call as they wrap up the financial period.
• 01:30 - 04:00: Financial Highlights FY25 The chapter titled 'Financial Highlights FY25' provides an overview of the financial performance and achievements for the fiscal year 2025 of GMM Feroz. The company reported consolidated revenues amounting to 3,199 crores with an EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of 381 crores, reflecting a margin of 11.9%. Additionally, the order intake for the year was recorded at 3,12 crores, marking a 3% increase compared to the previous year. As of April 1st, 2025, the company has a strong backlog, indicating healthy prospective business.
• 04:00 - 05:30: Operational Updates and Future Outlook This chapter discusses the recent operational updates and the future outlook for the company. The company reported a revenue of 1,636 crores and strong cash flows of 318 crores for FY25, reflecting a significant improvement over the previous year. In the fourth quarter of FY25, revenue was recorded at 807 crores, with an IBIDA of 93 crores, marking an 11.5% margin. There was a 9% growth in revenue and a 4% increase in IBIDA margin compared to the previous year, indicating positive financial performance. The chapter also touches on the order intake, though specific details are not provided in the transcript.
• 05:30 - 07:00: CFO Financial Overview The chapter titled 'CFO Financial Overview' discusses the financial performance in the recent quarter, highlighting a total revenue of 660 crores. It emphasizes the strong performance of the India business, which reported Q4 revenues of 2522 crores and an IITA of 44 crores, with an IITA margin of 17.4%. Additionally, it notes significant improvements in the second half of FY25, attributed to increased volume, a favorable product mix, and benefits from an ongoing EITA transformation program.
• 07:00 - 07:30: Question and Answer Session Start The chapter titled 'Question and Answer Session Start' provides a transcript of a financial discussion. It reveals that all program costs have been accounted for in the current financial year and highlights a 20% increase in the India backlog, amounting to 549 crores. The session discusses ongoing efforts to optimize global manufacturing, with a specific focus on the planned closure of the UK facility in Leven by Q2 FY26. All associated costs for this quarter have been accounted for in the financial reporting.
• 07:30 - 12:00: India Business Performance Q&A The chapter discusses the recent closures and relocations of production facilities undertaken by the company within the current financial year. It mentions the shutdown of the Hyderabad facility, the costs associated with its closure taken in Q3, and the relocation of its production to Gujarat. Additionally, the company has set up a low-cost manufacturing site in Poland, with plans to shift and ramp up production there.
• 12:00 - 16:30: International Business Performance Q&A The chapter titled 'International Business Performance Q&A' discusses the appointment of Gregory Gelhouse as the Chief Transformation Officer (CTO). In his role, Greg is tasked with spearheading the group's transformation initiatives, focusing on business expansion, enhancing operational efficiencies, and improving collaboration across different geographies and sites. The discussion reflects an optimistic outlook, particularly highlighting the strong performance of the business in India, which is expected to continue driving growth in revenues and profit margins.
• 16:30 - 20:00: Poland Acquisition and Manufacturing Strategy Q&A The chapter focuses on the Poland Acquisition and Manufacturing Strategy, highlighting various challenges and strategic decisions undertaken by the business.
• 20:00 - 25:00: Order Intake and Services Revenue Discussion The chapter discusses expected improvements in order intake and services revenue for the next financial year, with hopes that new volume will contribute to these improvements. Sarah hands over the call to Alex, the CFO, to go through the balance sheet and other financials before opening the floor to questions.
• 25:00 - 30:00: Chapter on Strategy and Future Expansion The chapter focuses on the financial aspects of the organization, emphasizing that the company has accounted for all one-time impacts from recent closures, such as Hydra and Leaving. This indicates thorough preparation to leverage positive outcomes in the upcoming financial year. Additionally, the chapter underscores a significant improvement in the balance sheet, highlighting its strength, particularly in terms of cash reserves, reflecting a robust financial position.
• 30:00 - 35:00: Pharmaceutical and Chemical Sector Q&A The fiscal year 25 saw significant improvements in working capital and free cash flow generation compared to the previous year. Long-term debt was reduced by approximately 116 crores, resulting in an improved net debt to equity ratio of 0.5 times compared to 8 times in the previous financial year.
• 35:00 - 39:00: European Market and Defense Sector Q&A The chapter titled 'European Market and Defense Sector Q&A' discusses the financial performance of a company. It highlights that the company's performance improved by two times compared to the previous four times of improvement when focusing on working capital. The chapter emphasizes a significant free cash flow generation, totaling around 318 crores for the year, which is an increase from the 221 crores in the previous year.
• 39:00 - 43:00: FGD and Other Technological Developments Q&A The chapter discusses the financial performance metrics related to free cash flow and IVID, highlighting an 80% conversion rate compared to a previous rate of 50%. The speaker concludes his segment and hands the discussion over to another participant named Double, and the line is opened for a Q&A session.
• 43:00 - 48:00: Manufacturing Footprint Optimization Q&A The chapter titled 'Manufacturing Footprint Optimization Q&A' begins with an invitation for participants to join a question and answer session. Participants are instructed on how to queue for asking questions by pressing certain keys on their telephone. The session organizers mention a preference for participants to use a handset when asking questions, and there is a brief pause as the queue is being assembled. The chapter captures the start of the interactive dialogue where participants can engage by asking questions about the manufacturing footprint optimization.
• 48:00 - 48:30: Conclusion and Closing Remarks The chapter titled 'Conclusion and Closing Remarks' primarily includes a question by Jir Shikaw from Ambit Capital, concerning the India business and its adjusted AITA margin trajectory. Unfortunately, the connection was lost during the conversation, and the chapter ends with an attempt to transition to the next question.

GMM Pfaudler Earnings Call for Q4FY25 and Full Year Transcription

• 00:00 - 00:30 And there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchdown phone. I now hand the conference over to Mr. Daval Rajut. Thank you and over to you sir. Thank you Steve. Good evening ladies and gentlemen. A very warm welcome to all of you into the Q4 FY25 earnings call of GM for Limited. The earnings presentation was uploaded on the stock exchanges
• 00:30 - 01:00 today and is also available on our website. Hope all of you had a chance to go through it. From the management, we have with us our managing director Mr. Tar Patel. Our CEO of international business Mr. Thomas Kell, our CEO of India business, Mr. Rasim Jooshi, our CFO Mr. Alexander Pner and our compliance officer Miss Mitt Mata. We will give you a brief overview of the performance of the company after which we get into the Q&A. Before we begin with the overview, a brief disclaimer. The presentation that was uploaded on
• 01:00 - 01:30 the stock exchanges and also on our website including our call discussion that will happen now contains or may have certain forward-looking statements regarding our business prospects and profitability which are subject to several risk and uncertaintities. The actual results could materially differ from those in such forward-looking statements. I would now hand over the call to Mr. Tariff Pat to provide an overview of the performance. Over to you Tar. Thank you devil. Good evening everyone and thank you for joining us today. As we conclude the financial
• 01:30 - 02:00 year, I'm like I'm pleased to share our the performance highlights for FY25. GMM fer achieved consolidated revenues of 3,199 crores and IIDA of 381 crores which is an 11.9% of IBIDA margin. Our order intake for FY25 was 3,12 crores, up 3% from previous year. Our current backlog on April 1st, 2025 stands at
• 02:00 - 02:30 1,636 crores. We also generated strong cash flows of 318 crores in FY25, an improvement of nearly 100 crores over the previous year. In Q4 FY25, our revenue stood at 807 crores with an IIDA of 93 crores at an 11.5% margin with a 9% growth in revenue and a 4% growth in IBIDA margin on a year-on-year basis. Order intake for the
• 02:30 - 03:00 quarter stood at 660 crores. Our India business has a strong performance in Q4 with revenues of 2522 crores and IITA of 44 crores with an IITA margin of 17.4%. The India business has also seen significant improvement in H2 FY25 due to increase in volume favorable product mix and an ongoing EITA transformation program the benefits of which will
• 03:00 - 03:30 continue into FY26. All costs for this program have been taken in this financial year. Our India backlog stands at 549 crores which is higher by 20 20 uh% on a year-on-year basis. Our global manufacturing footprint optimization continues. Our UK facility in Leven is on uh track for closure in Q2 FY26. As you will see in this quarter, all cost uh accounted for
• 03:30 - 04:00 this closure have already been taken in this financial year. We also shut down our Hyderabad facility this year and the cost of this closure was taken in Q3 of this financial year as well. The production from this facility has now moved to our facility in Gujarat. uh our lowcost manufacturing site in uh Poland has been established and we now plan to shift production and increase production at that site as well. I would
• 04:00 - 04:30 also like to welcome Gregory Gelhouse as chief transformation officer. Uh as CTO, Greg will lead the group's transformation efforts and key strategic initiatives to drive business expansion, improve operational efficiencies and enhance collaborative and integration amongst the geographies and our locations. Looking ahead, we are optimistic. However, uh the India business continues to do quite well and we are in a strong position to deliver growth in both revenues and margins. Our international
• 04:30 - 05:00 business has a good starting backlog. However, the current situation with us uh the tariff also the uncertainty surrounding investment that may have uh some impact on our international business. In conclusion, I think this year has been a transition year for us. I think we have focused on improvement programs internally. As I mentioned, two sites have been shut down. We run a transformation program here in India and as the market seems to be uh turning a
• 05:00 - 05:30 little bit. We hope that some of the new kind of volume will help us also achieve some of the improvements for the next financial year. With that, I would like to hand over the call to Alex, our CFO, who will take you more through the balance sheet and some of the other financials and we will then after open this to uh questions as well. Thank you very much. Over to you Alex. Thanks a lot Sarah. Good evening everyone also from my side. As said do not want to say
• 05:30 - 06:00 too much about the profit and loss there. Just to reiterate or say again that we have considered all the one-time impacts due to the closure of hydra as well as leaving already in this financial year. So we consider that we have done the homework to see the positive benefits in the next financial year. With regard to the balance sheet, the balance sheet um we show a strong improvement. We have a really solid good balance sheet especially from the cash
• 06:00 - 06:30 flow side. You see that um the working capital and free cash flow generation have improved significantly in the fiscal year 25 as compared to the previous year. We have repaid long-term depth of around 116 crores resulting in an improved net depth to it matrix of.5 times versus8 times in the last financial year. The net depth to equity also
• 06:30 - 07:00 improved to.2 two times versus four times last year. As mentioned, this is especially driven by a good working capital improvement. And therefore, on the cash flow front, we have generated a free cash flow of around 318 crores during the year as compared to around 221 crores in the previous year. This
• 07:00 - 07:30 results in a 80% conversion of the reported IVID of 381 crores. This is again an improvement over the previous years where the free cash flow to evida ratio was around 50%. This is so far everything from my side and I would like to hand over to double again. Thank you Alex. Steve you may now open the line for questions.
• 07:30 - 08:00 Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of
• 08:00 - 08:30 Jir Shikaw from Ambit Capital. Please go ahead. Uh sure. Thanks for taking my question. My first question is on India business. It's encouraging to see the adjusted AITA margin trajectory there. Hello. Hello. Uh yes sir. The current participant has been disconnected. We go to the next question. Yeah. Maybe they will come
• 08:30 - 09:00 back and just make sure that he comes back into the list, please. Yeah. Yes sir. Okay. Next. The next question is from the line of Prain Kumar from Aquitus Capital Advisor. Please go ahead. Yeah. Hello. Uh thanks for taking my question. I had a a question on the international business. uh so in particular I was trying to compare the order intake uh in the international business in FI25 and I was comparing it to the previous three years right so uh while doing that I
• 09:00 - 09:30 noticed that you know the order intake for FI25 in international business was almost not very different from what it was back in FI22 right it's almost at the same level even after three years have passed number one right and within that if I further look at the services part of the order intake right uh there is drastic decrease in the services order intake in FI25 when I compare it to FI22 level right so wanted to get an understanding of this that a at an overall level uh for the international
• 09:30 - 10:00 business order intake being stagnant on a three-year basis right uh wanted to understand the the causes for that and how do we see this going forward and also in particular wanted to understand the services order intake of the international business uh the fall compared to the levels of 522 and again how do we see that going forward? Thank you. Sure. So I think uh 2022 obviously was you know the time after COVID where things were booming. Uh our focus to
• 10:00 - 10:30 grow uh service revenue continues. This year the service uh order intake has probably been below our expectations but uh currently in terms of the pipeline and the focus in terms of growing our services business is on track. uh we do feel at some point and especially last year because of the slowdown general slowdown in the industry both capital equipment in terms of new capex as well as services across our client base did reduce. We now have um some kind of um
• 10:30 - 11:00 you know hope that maybe in the coming years these um services revenues will increase. The idea is to continue to be close to the customers and make sure that we don't lose service business and that's something that across uh all our locations we are trying to obviously grow the services business especially was lower in the US but we do expect some recovery to come at some point but in India um we have also seen a slight
• 11:00 - 11:30 slowdown in services which is a general trend now across the world however for us service is a very important portion of our overall order intake and it continues to be a focus area for us to come back to the levels that we had in 2022. Uh Thomas um if you would like to add or a theme as well. I think you stated it right that the overall market is slowed down after 22 in the makeup time after the pandemic and that is true also for the service jobs. Some of the
• 11:30 - 12:00 bigger service jobs were listed on hold by customers looking at the current situation in the development. Uh but those jobs are not going away. They are delayed. They will come to us later. Hello. Yes. Go ahead. Yeah. So again just to understand I mean to to improve my understanding of the services part of the business um our perception was that that is linked to the base of you know the installed base of uh of your clients right and uh one reason for uh drastic
• 12:00 - 12:30 reduction compared to three years ago could be that is it that lot of those installed base there have been significant shutdowns in particular geographies which has impacted otherwise you know one would expect that on if if those facilities are running they would continue to require your services right and and there should be some service inflation in terms of the order intake sl and and revenues right so that's that's the aspect I wanted to understand better no I think by that logic our
• 12:30 - 13:00 India installed base is probably the highest in the world and we still have 78% of service revenue I think it's just a mindset and it's the uncertainty surrounding the current situation has that you know kind of driven some of these decisions maybe at a budget level for spare parts as well within companies Maybe that is something that companies have kind of tried to cut back on. But at some point in time when these equipment need to produce, you will have the service revenue picking up. Right now we haven't seen any major shutdowns
• 13:00 - 13:30 in uh the US or Europe. I think it's just a kind of a trend where people did not want to spend money on services if they did not have to. Uh but that at some point these equipment like you said are old equipment. They've been installed for quite a period of time. the services at some point should come back and we expect it to come back in the next financial year as well. Understood. And and the assumption is also that since you have spread your service uh base uh further in in terms of geographies during this time that
• 13:30 - 14:00 should also probably help you in terms of getting these revenues I guess. Yes, correct. So I think services again is a key focus area for us. uh and by the last couple of years we've we've kind of created uh a smaller workshops and service centers across the globe just to better serve our customers. Uh we have three or four uh you know service centers now here in India. We've created like two or three service centers in the US a few in Europe as well. Uh so
• 14:00 - 14:30 services is definitely a push at some point it will come back. We went through a lean period both in terms of capex for new equipment as well as service. We thought that we are in a cycle a down cycle where capex closed down the services would increase. However, that was not the case. But I think as some of these capexes are becoming back as well and some of the you know margins and volumes are increasing at our clients uh sites. We will see now some of these
• 14:30 - 15:00 services also coming back. Thank you. That was very helpful. Thank you. Thank you. The next question is from the line of Jav Shikawat from Abed Capital. Please go ahead. Hi, thanks uh and sorry it got dropped off earlier. My first question was on your AITA margin trajectory for your standalone business. So apart from these one-off cost in relation to transformation, what further benefit do you expect? I mean after the excise is already done on your margins
• 15:00 - 15:30 that'll be my first question. Yeah. So I think uh the India transformation program which has run now for the you know nine months of the last previous year uh that has given us uh improvement both in terms of our cost structure but also in terms of operational excellence and uh you know areas in which we had not probably paid attention to. uh so that has put us in a very strong position at least here in India uh at our factory here in Gujarat.
• 15:30 - 16:00 What has also happened in India is the clo closure of Hyderabad. So having that facility no longer available the load of Hyderabad now moves into uh Gujarat which now obviously has much better utilization as well. We are now in a position where we will now even think of starting a third shift to address the volumes. we have a large glass line backlog as well. So I think India uh
• 16:00 - 16:30 margins will continue in this uh range as well 15 16% should be achievable for next financial year and maybe Aim can jump in now to talk a little bit more specific about this transformation program and the other cost controls that we have worked on here in India. Sure. So while talks about the cost controls, we'll cover a few other elements that were um that were part of this program and that should help us not just in FI26 but beyond. We really focused on our capacity improvement. Obviously when you
• 16:30 - 17:00 close down a factory and you need to consolidate as well, you have to be able to absorb the capacity especially when the demand comes back and we're very confident we're in a position to do that in our current factory. We've also enhanced the flexibility of our factory in that uh as we have additional product lines that are made in that we have the ability to flex as demand varies. Right? So we uh we feel they're in a lot better position now not just purely from a factory sorry from a financial and margin standpoint but also from a
• 17:00 - 17:30 flexibility standpoint and that those benefits will persist for uh incoming years. Yeah. And maybe just to add in terms of outlook, we feel that there is more positivity today. Uh the customers that we speak to in India have shown a lot more interest of investing. Now volumes have come back. Margins might still be under pressure but that's the first you know the first positive sign at least volumes are coming back right so uh we see that in terms of even the
• 17:30 - 18:00 opportunity pipeline here here in India has improved significantly. We also believe that some of the agrochemical players will start investing in maybe August uh you know September uh time frames as well. So all in all we have a positive view on India starting this year already with a smart uh a much bigger backlog than previous year. Plus the first the first month especially April has been very strong in terms of order intake as well. So we are in a strong position in India for the
• 18:00 - 18:30 financial year. Internationally as well we've had a pretty good April in terms of order intake. We need more orders as well which we are working on. Uh but generally we are today in a much better position than we were 12 months ago. Right. So and the hard work like aim and Alex mentioned has already gone in. Uh we are in the down cycle and hopefully as volumes pick up and the market improves we will be able to extract as much as possible from this increased volume as well. Right. Uh so that's the
• 18:30 - 19:00 overall picture here for India. Sure that's very helpful. I think the other question also was in relation to this. So what we have seen is your competitor has been able to recover back to their FI23 revenues from the yearly division in FI25. So what's your estimate both for your standalone business and the international business as to when they reach back to your peak level revenues which you might have also done in FI23 on the G side specifically. So on a GLE side I think we are now at pretty much
• 19:00 - 19:30 the similar levels as previously slightly lower than that you know obviously if you see our quarterly performance it has been pretty stable. Uh we'd like to kind of make sure that you know obviously even going forward we have stable quarters and we plan and we perform as per expectations. uh you know obviously the volumes this quarter even if you see the total revenue is still not a significant improvement over previous quarter or even previous year but in spite of the uh the incremental
• 19:30 - 20:00 volume not being there you were still able to increase margin significantly. So do keep in mind if the volumes increase over the next few quarters you will definitely see even better kind of flow through because at the same revenue levels we are still now at a 500 dips improvement here in India. Uh if you compare that to Q4 of the previous year right so which is a positive for us and as volumes increase and if they will increase you will maybe see some better flow through as well. Sure. My last
• 20:00 - 20:30 question is just on the order intake. So while I understand that you have healthy backlog for the India business I mean is it by choice that you are limiting the order intake there and also in the international business I think we have not really seen order inflows there idly every quarter it's sort of reducing and when you think that should bottom out in your expectation I think both India and the international business so I think uh on the order intake front India I like I said strong backlog 20% higher April has
• 20:30 - 21:00 been a good month uh And I think for the international business also, April has been a very strong month and that will reflect in obviously our backlog at the end of Q1. I think we will be in a better position to talk a little bit more about that when that those orders are some of them already in and some more expected and we're quite confident that we will be in a much stronger position at the end of Q1. Perfect. Thank you so much and all the best. Thank you.
• 21:00 - 21:30 The next question is from the line of Sagal Sha from Spark PWM. Please go ahead. Uh good evening everyone and congrats to the entire team for posting some decent set of numbers. Uh my uh first question was uh related to our global business uh especially related to glass lining and some non-glass lining technologies. So
• 21:30 - 22:00 what we had perceived at the start of the year obviously things didn't turn out because of microeconomic factors which are not in our hands but uh specifically speaking on the industrial mixing and especially on the glass lining side. So globally looking at the order intake that the company is actually getting the order intake is actually reducing almost uh is reduced as compared to even the last year. So u
• 22:00 - 22:30 is it something like are we some losing some market share specifically on the glass lining and the non-glass line technologies or maybe specifically can you highlight what exactly is going on outside? Sure I'll pass with Thomas. Well as you all know that the market conditions are not perfect and not as it has been two three years ago. We know all the uncertainties in the industry and that shows in the order intake. uh we have a lot of projects and pipeline is still uh robust and big but the decision making
• 22:30 - 23:00 processes are slow and hesitated and therefore we are 100% sure that we're not losing market the projects that are on hold will come sooner or later or it started a little bit already in April April is a better month and we are very confident that the first quarter will show us increased background and order intake Okay, fine sir. Nothing to see. I'll just add one comment here. I think
• 23:00 - 23:30 couple of years I think you know there were a few units that we've been working on and because of the large backlog and the large order intake that they have they had they struggled to also ship out some of these equipment. So some of that restructuring has also happened this year. These units are now much better placed in terms of receiving new orders and also shipping out these orders as well. Right? So, uh there is a bit of
• 23:30 - 24:00 capacity available. So, we are aggressive when it comes to delivery and pricing. So hopefully in uh the next couple of months including I mean what we booked in April already plus the next two months we should be in a much stronger position by the end of Q1 as a company in terms of both order intake and backlog as well. Got your point. So my second question was related to the uh Poland acquisition actually. So uh we we are closing the UK
• 24:00 - 24:30 operations as well as the Hyderabad operations in India and starting with the new acquisition at Poland. So can you highlight about the cost benefits that are likely to occur uh by manufacturing there and specifically can you highlight about some how how the cost structure will be different as compared to manufacturing in UK vis manufacturing in Poland vis India okay so there's a slight
• 24:30 - 25:00 misunderstanding here UK was a glass line facility and Poland is not a glass line facility Poland is really a facility that will support our non-glass line business. So it supports our Swiss entity Mab and it supports our mixing business. So Mixel in France. Both Mixel and Mabad are in a higher cost western European region while Poland is in Eastern Europe and much cheaper for both
• 25:00 - 25:30 engineering as well as manufacturing. Uh Poland is a joint venture. We've already completed the first order from MAG, our Swiss subsidiary. There were absolutely no quality issues and those uh equipment was supplied on time at a much lower cost structure than if they had to manufacture that in uh Switzerland as well. In terms of uh the new orders going into Poland, there's a large order that Mixel won recently. That entire
• 25:30 - 26:00 order will be made in not in France. And if you had to ask me, you would see at least a 30% cost benefit between Western Europe and Poland. Uh and that's something that we could expect that between India, Poland and the other uh value sourcing sites that we have, we will find the right kind of situation to make sure that the customer gets the right product at the right price point and we will improve our margin because of this lowc cost structure that is
• 26:00 - 26:30 available in the group. Okay fine sir. Uh my uh is this uh I had just a data keeping question within technologies that uh can you highlight that uh how much was glass lining the revenue the non-glass ling revenue and the rest is industrial mixing. Can you highlight the coincidence between these three among say technologies revenue are you talking uh are you talking on a global basis or on an India? on a
• 26:30 - 27:00 consolidated basis sir. So I don't think I have the data in front of me but uh generally yes we we will currently we um review our reporting and we will come back during this year. Thanks for your um advice for your comment. Okay. Okay. Fine. So uh just the last one from me uh we had incurred uh other income loss actually in this quarter due to the foreign exchange fluctuations. actually you highlighted in the document. So are
• 27:00 - 27:30 we not hedging our uh our exposures in the foreign exchange base since you have a lot of uh it foreign currency exposure. So are we not hedging our uh operations sir over there? So I think we have a natural hedge because we have euro euro uh USD as well as Swiss Frank and then Alex. Let me say some unfortunately some of the um of the FX exposure you could not
• 27:30 - 28:00 really hedge and we had once a few years ago already discussed we have interco company loans in place within the group which are between euro and USD denominated um entities and there we face a a book loss. However, this is something which you could not avoid if you have um loans between entities in two different currencies. But this could go both ways as well. This could go both ways. We also faced positive impact in prior
• 28:00 - 28:30 quarters and you see I think especially I would say one half years ago we had also there a big positive impact. Okay. Okay. Fine sir. I I'll come back to you. Thank you and all the best. Thanks. Thank you. The next question is on the line of meet Catia from Nveshai. Please go ahead. Yes sir. Thank you so much for the opportunity. Uh so sir uh you have given
• 28:30 - 29:00 the view your view on the order uh for the backlog for the app right. So I was asking from the point of view what are you seeing in in terms of demand which can come in the next month. So what are your forecasts for the demand? Uh are we seeing any bottoming out in chemical or pharma? Yeah. So I can talk a little bit I'll talk about two different uh regions in India. The conversations that we are having with our clients and these are
• 29:00 - 29:30 owners CEOs they are positive like I mentioned all of them have said a similar statement that volumes have come back. their plants which are running now at 45 50% are now running closer to 80%. So firstly that's a positive sign. However pricing is still under pressure which means that margins will continue to be under pressure but I do believe that there will be some amount of investment in both chemicals and when I say chemicals agrochemicals as well as
• 29:30 - 30:00 speciality chemicals. Speciality chemicals has continued and has been quite strong. Agrochemicals has been weak and we do expect agrochemicals to return sometime later this year. Uh pharmaceuticals has continued to be very very strong especially based pharmaceutical companies. The month of April saw a very large order not glass line but glass line as well as non- glass line here for Hyderabad and that has been a big kind of positive for us as well. Um so pharma continues to be
• 30:00 - 30:30 quite strong especially uh companies that are now working with you know the GLP2 kind of manufacturers peptides etc things like that are really driving a lot of investment as well so pharma remains quite strong final uh the inquiry level in pharma also continues but what we are seeing that's different from the past is some of these agrochemical players are now thinking of investments uh you know some of our big customers like PI SRS EKN are now
• 30:30 - 31:00 started talking in terms of when the next level or the next building or the next unit will be kind of greenlighted and then the inquiries will start and then obviously the shipment will continue. Right? So I do expect a recovery somewhere in the middle of this quarter. The good thing is that we have enough of glass nine backlog for the first half of the year and then we really need to worry about glass nine coming uh into the sec into the third or fourth quarter and really helping us. So
• 31:00 - 31:30 if that agrochemical cycle turns the middle of the year that would go very well for us for the second half of the year as well. Uh in terms of global uh I think chemical and pharma still continues to be uh below expectations. uh I think the uncertainty surrounding the tariff situation uh is obviously holding investment. However, uh some of the investments are being kind of discussed now. Some of these which have been pushed out are now kind of moving
• 31:30 - 32:00 towards uh closure. But there are new areas where have emerged if karma if you know if pharma and chemical has slowed down we have seen uh investments in other Europe uh in Europe and the US in other areas as well which has made up for some of the shortfall that we've seen in chemical lama. So the diversification strategy and our product going into some of the new segments has also kind of helped us make sure that the uh the loss because of chemical
• 32:00 - 32:30 pharma is not uh that uh intense. Yeah. Thank you so much for the in answer. Uh the last question is like uh if you can uh throw some on uh if any new player has come in or existing player facing problem in the market. So, so how we are positioned as compared to existing uh players and even newcomers. So, I think we have a global manufacturing footprint. So, even with
• 32:30 - 33:00 the tariff situation that is currently being discussed, we have local manufacturing. So, for example, if the US tariff situation would create more investment in the US, we have a US unit that can supply into the US. We also have Brazil where the tariff situation is not so bad and that can be used to supply into uh the US market. Uh from a European perspective as well, we are strong. We've shut down one facility. So now we have two facilities. So better utilization as well from a gas line
• 33:00 - 33:30 perspective. Uh and with Poland coming online, much better cost structure as well. India today focused only on India. But as India has also grown, we are now looking at the surrounding areas around Middle East, Southeast Asia to also go and sell some of our products into uh our heavy engineering business in India has done incredibly well this year and will continue to do very well next year as well. And the idea is to grow that business because that kind of caters into oil and gas, petrochemical, power,
• 33:30 - 34:00 nuclear etc etc where obviously they are not constrained by the same kind of growth issues that currently chemical and pharmaceuticals are facing. Right? So diversification and having multiple product lines in uh in you know areas that we don't normally participate in will help us kind of make up for some of the shortfalls. Yeah, got it. Thank you so much.
• 34:00 - 34:30 Thank you. The next question is from the line of Sam from Mariculous Investment Managers. Uh good good evening team. Uh my first question is uh so you did mention that uh you are closing the UK facility. So you intend to supply the resultant demand from India or from the other two European location that you have presently. Yeah. Go ahead. So we have closed down this site because of the last few years
• 34:30 - 35:00 we have improved process uh in the operations in the German plant and Italian plant significantly so that we can absorb the capacity that was in the air. So we took the advantage of the slowdown time to consolidate there and improve our cost position and be more competitive and uh we also bring in products from India. Uh this has been established three years ago very successfully so that we can serve the
• 35:00 - 35:30 market even if the market increases significantly we have overall enough capacity to do so. It's not a very large market. So I don't think that we're going to expect significant growth in that market. But yet if the market were to need it equipment, we are well placed to serve that market through two of our European sites and even with India. And if the trade agreement with India and the UK could be also beneficial where the duties and transition between India and the UK would also help us become more competitive as well.
• 35:30 - 36:00 Got it. And u so are you still looking to rationalize your manufacturing facilities or it's largely done? So I think that uh we are always looking to rationalize and to improve our manufacturing footprint. I think our Poland facility is a start in the right direction but we do need to add capacity and look at moving costs from expensive locations and high cost locations to Poland. uh we also feel that the
• 36:00 - 36:30 availability of engineers, welders are easier in some of these locations. So we will continue to invest in areas that will help us support our growth and the cost structure that we're looking forward to. And then obviously in India currently uh we have already a strong footprint. Uh China and Brazil are also well taken care of. Uh so there's no real kind of additional investment that we need as a group. But if there is an opportunity to rationalize, we will
• 36:30 - 37:00 continue to do so. Understood. And last question is on the India transformation program that for which we have incurred around 9.8 cr uh in this quarter. So is is all the expenditure uh related to this program largely done or we should expect some uh some expenses to be incurred in next financial year as well? No, no, you could consider that everything is spent. Uh so the total number for the year is around 15 plus
• 37:00 - 37:30 crores. That's the full uh amount that was paid to the advisers who are running this transformation program. Uh and on top of that the 5 crores we spent on closure of Hyderabad that has all been taken in this financial year. 20 crores in total none of those costs will carry forward into the next financial year. Got it. Thank you so much and all the best. Okay. The next question is from the line of Rona Coal from Arian Capital Market.
• 37:30 - 38:00 Please go ahead. Thanks for the opportunity. So my first question is by going through the financial segment in segment by revenue technology segment reported lowest quarter. The revenue in last 12 months and the ordering is also not looking that great. So what are your plans to improve it? Sorry we could not hear you. Could you repeat the question please?
• 38:00 - 38:30 Technology segment company reported the lowest revenue in last 12 month 12 12 quarters and the order intake is also not looking that what are your plans to improve that? Yeah. So order intake in technologies was obviously the result of a slowdown in the glass line business which was driven by a slowdown in the chemical and pharmaceutical sectors around the world. In India especially the agrochemical sectors like I
• 38:30 - 39:00 mentioned to you India starts the year with a 20% higher backlog. So that is a an a favorable mix between heavy engineering glass line and proprietary products. So obviously as you can see some of the glass line business has come back internationally as well the the services business has taken a hit last financial year. Again services is something that comes and fast moving so can be converted quite quickly. Uh as Thomas mentioned that we have a very
• 39:00 - 39:30 strong pipeline. Some of these orders have already come in in this financial year in the first quarter and we expect again in the month of May and June to have a strong order intake. the focus is on order intake to make sure that we have uh utilization and absorption for the next few quarters as well. So some of this has already come back and some of this is expected but we are aggressive in the market and we are trying our best to win as much as possible and where we can't win in
• 39:30 - 40:00 markets which are constrained by growth we are trying to win in other areas as well. So heavy engineering mixing even in India we have broken into new markets like food and beverage where we usually did not play. So a lot of things going on and then we have certain businesses which are completely outside chemical and farmer like headlon in the US which has done quite well and continue to do quite well. So we are just trying to see where is the growth going to come from and where exactly can we compensate for the loss of the glass line business that
• 40:00 - 40:30 has happened over the last couple of years because of the slowdown in the chemical sector. Okay. What the amount of growth are you seeing in next two years as well but you know in terms of the backlog here in India you know it's higher and India will grow uh and internationally also we expect a small amount of growth uh but we do expect to have a much better financial performance for the next financial year than we did
• 40:30 - 41:00 this year. Okay sir international margin part we have seen margin pressure incot. So when are we looking to take back the margins and in next two years what can be your target margin pressure is called how? Yeah. So margin pressure this quarter of course because of the lower utilization if utilization comes back and volumes
• 41:00 - 41:30 come back those margins will look a lot better. India margins as you have seen in Q4 are already quite strong. So we expect that to continue in that kind of range. uh which is significantly higher than previous year uh due to all the homework that has gone in. uh so margins will improve uh you know I'm not here to give a kind of uh guidance right now because it's still a lot of uncertainty especially in the international business uh and as time progresses as the backlog
• 41:30 - 42:00 improves as we see all the intake improve which we think it will and some of it is already coming uh by the end of Q1 we will be in a better position but I can say today that I I said compared to 12 months ago uh I think we are in a better position and things are looking more positive Okay sir. Thank you. That was my Thank you. The next question is from the line of Hardik Gandhi from HPMG shares and securities. Please go
• 42:00 - 42:30 ahead. Hello. Am I audible? Yes. Go ahead. Hi. So thank you for taking my question and just wanted to know on the Poland site what kind of revenue are we expecting from that site and how fast we can ramp up and what's your plan looking for that as like that site for now. So the site in Poland is a small entity that was a couple of years a startup where we had 51% share acquired uh just
• 42:30 - 43:00 recently. Um the current revenue will be cut tripled uh within the very first year due to the orders we are giving in there. The cost plan is to uh complete further buildings and increase capacity and in just a few years it will double again and we come close to 10 million within two to three years even. Okay. So you are saying we we we are expecting to quadruple the revenue at least in this year. So what is the
• 43:00 - 43:30 number we are looking at like this year we will be close to 5 million US. So just to give you an idea, I think they were as a standard of something about one one and a half odd million and the recent order that we placed on them for our site in France is close to $4 million, right? So that's already a significant increase. Plus over the year, we'll add more. we need to ramp them up as soon as possible because you know again it's a it's a great uh source for our two units in Europe and uh the
• 43:30 - 44:00 the uh momentum there and the need of those two units and the quality levels that have come out of Poland have really been uh very good. So I think as more and more requirements being given to Poland um if we uh could ramp up faster we will but of course obviously take time and we will try and ramp up as soon as possible. And just to be just to be clear Poland the revenue it's in fact
• 44:00 - 44:30 considered as an internal cost improvement play. So it will not be a full topline revenue improvement story. So as said we will use it as a manufacturing hub especially for the Marabak and the French entity which then have or keep the external revenues but with significantly higher margins and what kind of margins are we expecting on a ballpark basis you say
• 44:30 - 45:00 Tarak said already before that we expect an improvement of um 30% on the cost base um so um I would keep it there to so so that you could do some calculations. We do not want to f further comment as of now. Understood sir. Thank you sir. The best one. The next question is from the line of web from Labram Capital. Please go ahead. Yeah. Hi thank you for the opportunity.
• 45:00 - 45:30 uh I think you mentioned that in pharma India volumes have been you know uh and outlook has been strong and international has been relatively weak uh you know with increasing talk about uh global supply chain diversification out of China I mean are you seeing any early benefits of it in India or you know outside India that's my first question secondly related to that is you know or do you think it's like sort of early days of seeing impact for that trend happening and current volume
• 45:30 - 46:00 trends in India farmer are largely being driven by the CLP1 tailwind. I mean the way I look at it I know 6 months ago I would not say no to certain glass line orders. Today I pick and choose what I want right. So from that perspective volumes have increased. If I'm starting a third shift now as well you know the factory is also buzzing with these additional volumes. So the situation at a factory level is definitely much better. Um from what I speak with people that we have very
• 46:00 - 46:30 strong relationship with owners and stuff many of them have said that you know guys hang in there things are looking a lot better investment will come uh but this is more of a general India story right and I think that is being driven by some of the uncertainties with China some of the production of China moving to India as well I think India will be well placed to capture some of that uh production as well and keep in mind the last couple of years similar to us many of the chemical
• 46:30 - 47:00 players have also not invested right so at some point something will turn and then you know you will see volumes pick up the signs are very positive the start of the year for India looks very very good the inquiries in glass line are quite strong not only in glass line but across the other two verticals that we have in India for private products and our he uh he engineering business glass line probably was the weakest one but glass has recovered in in a nice way and all three product lines have a very
• 47:00 - 47:30 strong backlog and a very strong outlook as well. All right. Thank you. Thank you. The next question is from the line of Rajiv Kala, an individual investor. Please go ahead. Hi, thanks for the opportunity. Um with the recent uh geopolitical developments uh it seems like a significant amount of
• 47:30 - 48:00 capex is being planned by European countries especially Germany. Now this will mainly be in the area of defense infrastructure energy etc. Do we see any opportunities related to our businesses to capitalize on uh this capex growth in the Euro zone? um especially given our strong presence in Europe and particularly in Germany and the related question to that is uh what percent of our revenues currently are
• 48:00 - 48:30 attributed to Europe. Yeah. So defense is definitely an area where we do participate. uh we have seen traction we have seen recent order intake in this space and that is definitely uh something new that has not happened in the past how does it play out and pan out I'm not sure but it seems that for European countries and the European Union defense is one area that they do want to spend money in and we definitely have a play there because
• 48:30 - 49:00 we are quite with our glass equipment our asset recovery systems quite capable of participating in that story as Well, so that is definitely an area that we are seeing traction in. Uh and we hope many of these orders in those spaces will start to materialize if they haven't already. Uh in terms of European side, you could just maybe look at the US or the Americas as one/ird of revenue, Europe as one/ird and Asia as one/3. That's really a ballpark figure.
• 49:00 - 49:30 It might have fine- tuned a little bit, but generally that's a rule of thumb that we are currently working on. Great. Thank you so much and all the best. Thank you. Yes. The next question is from the line of Ravi Mata from Vana Financial. Please go ahead. Yeah. Hi. Uh thanks for this uh call. Uh so there was a regulation on FGD which got pushed to 2025 uh from 22 earlier.
• 49:30 - 50:00 So uh should this uh benefit your systems vertical because I'm not able to see that in the order book or revenue so far. So some color on FGD uh opportunity. Yeah. So I'll take this one. So FGD subsidization you're right regulation has been pushed out. Um obviously that doesn't help the those projects to come forth. Um there are they're still engaged with a number of customers who
• 50:00 - 50:30 are still deploying their FGD projects. So those are going forward. Uh but uh you know with the regulation being pushed out I expect new projects might slow down until the regulations um are closed until the deadline is closed. So the older projects won't uh want a FGD unit. Uh so you can help with your systems unit for the older ones as a retrofit. So there are projects for FGD that we're executing those obviously will
• 50:30 - 51:00 continue. Um as far as new FGD projects for existing units, our conversations with customers that are advanced those are continuing but I do expect new conversations may get pushed out as customers uh potentially delay the capex that would go into the new gasization unit because regulations pushed out. Yeah. Okay, I will just add uh quickly I mean um related point is you know FGD or you
• 51:00 - 51:30 know various other technologies uh GM parlor has uh realized that customers often would like to test their products their the do a proof of concept before they go into a large investment and to that end we have now established a test center in our Gujarat facility uh it was inaugurated last quarter by managing director and here we have the ability to offer customers uh the ability to try
• 51:30 - 52:00 before they buy right they can do a lot of tests uh around the asset concentration various other solutions uh including FD kind of applications right so we are ready for uh and and able to solve these requirements in India I think that's a that's a big step forward for many sure thanks Yeah, thanks. The next question is from the line of
• 52:00 - 52:30 Rohit Ori from Progressive Shares. Please go ahead. Uh, hi team. Uh, three questions. First one, uh, uh, do you think uh, that the clean up of the balance sheet which is going to manufacturing uh, footprint optimization process which is ongoing. Has that been completed or do you think there are some more subsidiary or shut down subsidiaries that you might want to close in near future? So we have uh completed two of these site closures this year. On top of that
• 52:30 - 53:00 we have restructured our Swiss units as well. So that was also a tough uh unit that we had to clean up and we have that uh that production the capacity there the flow of uh the product has improved significantly. We brought in the right people to run the supply chain and the project and the engineering team has also been kind of increased. So three units have been kind of two have been closed and one has been restructured. uh we will continue to kind of move
• 53:00 - 53:30 production into Poland uh over the next uh months and quarters as well. Um I think in India we are well suited and well placed. Uh China we have to be there and we will continue to play in China and obviously the US and Brazilian units work hand in hand to cater to the American market as well. There is an opportunity probably somewhere in South America as well where we haven't really had too much of success but that could be an area especially for our mixing business where we uh there's a lot of
• 53:30 - 54:00 mining and uh you know mining companies that would have required and mining for us as mixing has become a very important part of our uh you know mixing program. We have had large orders coming in from Australia even here in India and we will look at targeting some of these big mining companies where you know lithium extraction or you know heavy metals all that kind of stuff that is coming out. Uh we can probably participate in that growth story as well. Mhm. Uh Greg is
• 54:00 - 54:30 appointed as Cto. Uh what are the uh key short-term and long-term goals which he's assigned? So I think u you know you will hear more about this global transformation program that we are working on. We've had already a great amount of alignment between the management team and I think maybe from a a softer aspect I think over the last year or 18 months we really kind of come together as a group.
• 54:30 - 55:00 Before that when business was great we were running India and international as two separate companies but during this down cycle we were really able to sit down and really agree and align on what the company should look at look like five 7 10 years from now right so a lot of work has gone into uh how we want to organize uh what our strategies are going to be um you know what are what do we want to be known at in terms of you know uh our company and how are we going
• 55:00 - 55:30 to bring growth back, right? Because you know that glass line is a mature business. You know that we are already a market leader with 50% market share. The focus obviously in glass line is to improve margins and rationalize manufacturing footprint to a point where uh the salesperson or the customer should have no say in where this product is made. It should be a supply chain kind of a decision depending on what capacity is available uh within the group. Right? So that is the end state that we would like to be. The focus should really be on the other uh
• 55:30 - 56:00 verticals especially the non-glass line verticals, the heavy engineering verticals and the systems verticals where growth is really unlimited because those market sizes those addressable markets are much much bigger than what glass line is. Uh so that is really the theme of the strategy that we're trying to put together. Uh how do we organize to capture this um you know opportunity? How do we organize to make sure that the people involved in these verticals make the right decision and drive the right
• 56:00 - 56:30 behaviors? All those things are going to be something that we have discussed and we will now start implementing and Greg's role is going to run to run this formal transformation program because as a company we can't lose sight of uh the business because business and financial performance is very important but at the same time we need to transition. what has worked for us for the last 20 years may not work for us for the next 20 years. Right? So we have to kind of uh diversify. We have to be creative. We
• 56:30 - 57:00 have to organize better and we all need to be aligned with the same kind of thought process across the organization so that we create the right behavior amongst our people as well. So that's really the kind of transformation. It's really a large transformation program that we're going to do. Uh as the market turns, we will see a lot of these benefits going through and we are prepared to put in the hard work to make sure that over the next year or so we have the program in place. We are we are
• 57:00 - 57:30 motivated. The momentum is there. I think the expectation within the group is also there. The management team is completely aligned and we are ready to hit the ground running. Uh and that's pretty much what Greg is going to run over the next 12 months. And uh Greg is here. Maybe I'll invite him to say a few words in his first uh conference call as well and introduce himself. Greg, you'll have to come a little bit closer to the microphone as well so you can speak up. Yeah. Yes. Hi everyone. Greg Delhouse
• 57:30 - 58:00 here. Uh Roy, thanks for your question. As as Tar said, I I there is a a tremendous opportunity within the group. It's obviously been extremely successful over the past many many years. the diversification program has already borne a lot of fruits. Uh but there are there are opportunities to continue to improve and and and this is where a formal transformation program as as Tar has highlighted will will really benefit the group. Uh the senior management team
• 58:00 - 58:30 is 100% aligned to drive that program and uh we're we're looking forward to uh working together to achieve those aims. It is really forward looking. So we are looking to really make some significant improvements uh and and help to drive that that growth and and and bring that forward for the future. Thank you. Thank you. Thank you Greg. Uh Tak my last question uh you mentioned that uh you're looking at starting the third shift at Karamsal. uh how much or
• 58:30 - 59:00 what percent is attributed to the shift in from Hyderabad and how much percent is attributed to probably the uh new orders or the green shoots that you see in the order book right now? Yeah. So see by the time we decided to shut Hyderabad we didn't have too much backlog there that came in. There was some but not significant. The real new backlog that is coming in Gaten is really new orders that has come in the new investment the new capex that is going in. not the Hyderabad load that is
• 59:00 - 59:30 driving this uh new kind of uh you know uh starting of the third shift etc etc it is real new volume that is being generated from the Indian market and this is without agrochemicals coming back right so this is still specialtity and pharma and if agrochemicals were to come back at some point that would even kind of add to those volumes great that that's quite encouraging thanks for that thank you team thanks a lot thanks
• 59:30 - 60:00 Thank you. We have a follow-up question. It's from the line of Samyak. Please go ahead. Uh thank you for the opportunity again. Uh so just wanted to understand that uh we are hearing a lot of traction from for the flow reactors from the chemical companies. I just wanted to understand how is GMM taste uh in the flow reactors and are we seeing any traction in that?
• 60:00 - 60:30 I just want to make sure you asking about flow reactors. Correct. Correct. Yeah. So yeah, continuous chemistry is something that's been sort of on the horizon for a long time in the chemical space. um you know as GMM partner you know we've been equipment manufacturers for batch chemistry also for a very long time and we've been looking at continuous uh along the way um as we have studied it we recognize the potential of continuous chemistry and flow chemistry we also know well the
• 60:30 - 61:00 limitations thereof right so based on the studies we've done we have embarked on a few initiatives at GM solid to make sure that as flow flow or continuous chemistry picks up uh we are positioned to capture that and I'll just touch on some of those first we have a active collaboration with NCL along with other industry leaders um you know chemical companies companies we're really the only uh capital good company in that
• 61:00 - 61:30 alliance and that is at the forefront of development of flow chemistry in in India and that's in partnership with a UK agency as At the same time within our team we have strengthened our capability in flow chemistry. Uh we have already a couple of projects uh products excuse me that are available in flow chemistry and we'll continue to expand that. So I think you can rest assured that when flow chemistry really picks up and hits
• 61:30 - 62:00 its prime GM powder is ready to uh to give solutions for customer. Okay. Thank you so much. Thank you ladies and gentlemen. That was the last Is there another question? Sorry. I think there's one more question. You want to take that last one and then maybe we can close. Okay sir. It's from the line of Rohit Toi from Progressive Shares. Please go ahead. Uh hi thank you for the followup.
• 62:00 - 62:30 Um questions related to the uh heavy engineering business. uh API show that what sort of capacity is there at VWA and and do you think that there should be phase two of VAWA coming soon? So yeah so you know we we believe we have plenty of room for growth in VAWA itself for the next couple of years. However um we do anticipate outgrowing that facility uh out in the future. So
• 62:30 - 63:00 we're actively working on those plans. you know demand is very strong. Uh we believe we have very strong systems in place now. Uh in the past three years that we've been running the factory, we've seen very good ramp up as well as a very good margin expansion over the over the past three years. Uh so we are uh looking to expand this um you know in cost share expansion plan. Right now we have adequate space in what for the next two two years at least. Okay. uh this
• 63:00 - 63:30 elevated uh platform uh for the bullet trainin it runs very close to a plant in WA. Uh do you think that uh we can play some role via H for the bulletin project if any? No, not really. I wish I could I mean we could use if we could have a station that would be very convenient but uh um I think the station would be in the city of Ahmedabad but you're right it runs very close to us but unfortunately I
• 63:30 - 64:00 think most of the work with that railway has been completed so yeah it's not an it play for us okay okay team thank you for answering thanks a lot thank you thank you ladies and gentlemen that was the last question for today's conference call. I now hand the conference over to the management for their closing comment. Thank you Steve. Thank you everyone for joining us today. It was pleasure interacting with you and we look forward to many such interactions during the
• 64:00 - 64:30 course of the day. Take care and see you soon. Thank you. Thank you on behalf of JGMM Fodler. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.