Azad Engineering Limited (AZAD) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to Azad Engineering Limited Q4 FY '24 Earnings Conference Call hosted by ICICI Securities. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Amit Dixit from ICICI Securities. Thank you, and over to you, sir.

Thanks, Manuja. Good morning, everyone. On behalf of ICICI Securities, I welcome all the participants for Azad Engineering's Q4 FY '24 Conference Call. At the outset, I would like to thank the management for giving us an opportunity to host this call. From the management today, we have with us Mr. Rakesh Chopdar, Chairman and CEO; Mr. Vishnu Malpani, Whole-Time Director; and Mr. Ronak Jajoo, Chief Financial Officer. We will have brief opening remarks from the management, post which we will open the floor for an interactive Q&A. Without much ado, I would hand over the call to Mr. Chopdar to take this forward. Thanks, and over to you, sir.

Thank you, Mr. Amit. Good morning, everyone. This is Rakesh Chopdar, Chairman and CEO at Azad. I welcome and thanks for joining today on the annual earnings call. On this call, we are joined by Mr. Vishnu Malpani, Whole-Time Director; Mr. Ronak Jajoo, our CFO; and the team SGA, our Investor Relations advisers. The results and presentations are uploaded on the stock exchange and the company website. I hope everybody has had a chance to look at it. Now I wish to update on a few points on the IPO success and our financial performance. So this year, we embarked on a monumental journey with the successful completion of our IPO. This milestone was meticulously planned and executed at the perfect moment after years of preparation. I'd also like to take this opportunity to give you a quick overview of our financial performance, which will be covered in detail by my colleagues later in the call. Our dedication and hard work are now bearing fruits, and I'm thrilled to share that we have achieved our best ever performance, both quarterly and annually with a top line of INR 340.7 crores in FY '24 and INR 92.8 crores in Q4 FY '24. The initial plan for FY '24 and FY '25, the growth trajectory plan was around 25%, 30%. And I'm happy to share that FY '24 plan has been achieved, and we are on track to achieve the FY '25 numbers with a growth of 25% to 30% in the top line within our existing facility. The last leg of growth -- the next leg of the growth will come through our upcoming facility in -- from FY '26. Talking on the business vertical on the energy sector achievements, as you all are aware, our new manufacturing facility in Hyderabad, which will be 10x the capacity of our existing facility is under construction and development. We are building dedicated factories for our key clients within our boundaries. The first factory foundation stone was laid by Mitsubishi Heavy Industries team, and now we have more customers wanting to block capacity with us by requesting for an exclusive dedicated unit individually. In the meantime, we are running with full or almost no capacity and we'll do as usual business and are eagerly waiting for capacity expansion in our new facility for the next level of growth from FY '26. A significant highlight in the energy vertical was the foundation stone laying of our new lean manufacturing facility. It was an honor to have the Global President and CEO of GE Vernova Steam Power to facilitate this event. This facility represents a major step forward in our growth within the energy sector and demonstrate Azad's strategic importance in the global supply chain and the demand can be seen through the executed long-term contracts. Along with the above development, we secured a notable contract from GE Vernova Steam Power business. The Phase 1 of the program value was around $35 million for over 7 years for the supply of high complex rotating air coils for the nuclear industrial thermal power industries. We have signed another MOU for Phase 2. This large order underscores the scalability of Azad's business and our strong relationship with GE Vernova. Aerospace defense milestones, I would just like to mention on the aerospace defense sector. We achieved a significant milestone by securing a 7-year contract from Rolls-Royce for the defense and the military aircraft engines, as mentioned in our previous call. It's important to understand that a contract with Rolls-Royce extends beyond the contract value. This partnership opens a big door of opportunities and potential for us, marking the beginning of a long-term relationship with vast potential. In the coming years, by capturing more engine programs, very soon, we can anticipate such programs from the commercial civil aircraft engine as well. Additionally, we have signed key strategic nationwide contracts, demonstrating our commitments to contribute to national projects of importance and reinforcing our position as key industry player in aerospace and defense. For the oil and gas sectors, in the oil and gas sector, we have achieved substantial success with 2 major contracts from Baker Hughes. These contracts are expected to generate significant business value over the next 5 years. These orders not only enhance our current revenue stream, but also positions us well for future opportunities in this vertical. Venturing into this sector was part of our diversification strategy, and I'm happy to share that we are on track to achieve this goal. Most important, the infrastructure and capacity expansion. This point is very, very important for everyone to understand. Now let me take a moment to update you all on the infrastructure and capacity expansion efforts which were a key point during our IPO. We made ambitious promises, and I'm proud to report that we have not only met but exceeded those commitments. The foundation stone of the new lean manufacturing facility at the [indiscernible] IP Hyderabad is just the beginning. The state-of-the-art facility will include dedicated factories within the larger factory, tailored especially for our customers. Phase 1 is progressing well, aligning with our strategic vision for long-term growth. Our investment in infrastructure and capacities enhance our production capabilities and strengthen our ability to meet the increasing demand across our diverse business verticals. This expansion is crucial as we build a robust order book, providing clear visibility into our future revenue streams. The order book has increased significantly from approx INR 1,800 crores to INR 2,000 crores, which was in March '23. And today, it's INR 3,000-plus crores as on March '24. Hence, the upcoming facilities is of critical importance for the next level of growth. On the capability expansion, I'm excited to announce that we have expanded our capabilities through a strategic acquisition. We have integrated a special process and coating company in our portfolio by acquiring the assets of VTC Surface Technologies. This has led to a formation of new subsidiary around VTC, which will now cater to our captive special process and coating requirements as well as the global demand from other OEMs and suppliers. This is the first of its kind for Azad, and we are thrilled about the potential this development holds as this capability strengthen our supply chain and reduce dependability. This move of Azad has given a lot of comfort and confidence to our customers on the timely delivery. Over on the business performance and future outlook since inception of 16 years ago, Azad Engineering has made tremendous strides across all sectors. Our relentless pursuit of excellence has positioned us as leaders in the industry with a solid portfolio of high complex components, meeting stringent precision requirements. We have grown sustainably from INR 122 crores in FY '21 to INR 340 crores in FY '24, representing 2.8x in 3 years at a CAGR of 41% in top line. Similarly from PAT of INR 11.5 crores in FY '21 to INR 58.6 crores in FY '24, representing a 5x in 3 years at a CAGR of 72.1%. Our growing business is supported by a solid order book of over INR 3,000 crores plus, providing clear visibility into future revenue streams. The strength of our balance sheet bolstered by the IPO has enabled us significantly to improve profitability. During the year, we delivered revenue growth of 35% with a sixfold jump in the PAT. This quarter's results reflect our strong financial performance with ample room for further margin improvement. On a long-term basis, our EBITDA is expected to be in the range of 33% to 35%, depending on the product revenue mix. In conclusion, the journey of Azad is one of [indiscernible] innovation and growth. We remain committed to delivering exceptional value to all the stakeholders, and I'm confident that the best is yet to come. Thank you. And now I hand over to Mr. Vishnu Malpani, our Whole-Time Director, to take this conversation further.

Thank you, Mr. Chopdar, and we welcome everyone for this earnings call for -- annual earnings call. I want to begin by giving you a quick recap of our product portfolio. It is a basket of very niche project and life critical products. Broadly speaking, the market for our key products is highly regulated and has a TAM of over $28 billion. With a valid share -- with a wallet share of below 1% of this TAM, there is a lot of scope for us to grow further. Our recent order wins that Mr. Chopdar spoke about are a reflection of Azad's readiness to grab a larger piece of this TAM in every sector that we are operating in, whether it's power generation, aerospace and defense or oil and gas. As a result of our continuous business growth, our product mix is evolving as well. And you can see that with the diversification amongst our business verticals, Energy segment where we had a head start contributed to 72% of our revenues in Q4 '24, whereas Aerospace and Defense segment, which has delivered significant growth this year, contributed to about 16% of our top line in total. Starting Q4 '24, we are seeing some revenues coming in the oil and gas sector as well. During the fourth quarter, this contributed to about 5% of our top line. This is just the beginning of Azad in both aerospace, defense and oil and gas sectors. We are confident that we have built in our business the momentum, and we will continue to deliver 25% to 30% revenue growth annually over the next few years sustaining. We have a robust pipeline of products under discussion for which qualifications and approvals are awaited. The pipeline continues to add our order book and revenues on a regular basis. With the shift in our business mix, we anticipate an improvement both in our working capital and as well as ROCE. Further, following the IPO, our balance sheet has strengthened significantly, and this has helped us to reduce our finance cost largely. Our finance cost, which was INR 47.3 crores in FY '24 is expected to come down drastically in FY '25. Going forward, the total interest costs would be to the tune of approximately INR 3 crores a quarter, which is in line with our Q4 recurring finance cost. This would be a fair representation of our financial performance going forward, both in terms of profitability and returns profile. Now I hand over the call to Mr. Ronak Jajoo to talk further about our financial performance. Ronak, over to you.

Thank you, Vishnu. Firstly, let me talk about consolidated financial highlights for the full year. Revenue from operations grew by 35% to INR 340 crores, ever our highest performance annually in our company. As explained by Vishnu, this was led by substantial growth in the energy and oil and gas segment, which increased to INR 285 crores in FY '24 to INR 219 crores in FY '23, thereby increasing 30% year-on-year basis. The Aerospace and Defense segment reported a robust growth of 95% in FY '24. The revenue increased from INR 23 crores in FY '23 to INR 44 crores in FY '24. During the year, our EBITDA margin has expanded on account of operating leverage and process efficiencies, resulting in adjusted EBITDA margin improved from 31.6% in FY '23 to 34.3% in FY '24, and this is the highest level of EBITDA margin we have achieved during our history. Going forward, we continue to maintain healthy EBITDA margins in the range of 33% to 35%. We are working on various initiatives such as local sourcing as I told you last time, process improvement, further qualifications of new products, especially in aerospace and the oil and gas segment, where we have recently signed a long-term contract with the global OEMs. With our investment towards the special process into the Azad [Engineering] Private Limited, which we have announced recently, which will help to reduce the job work charges from H2 FY '25 and onwards. And also it will help us to smooth our logistics because whenever we send the parts outside for job work, it takes the logistics happen. The company has reduced its debt significantly during the year, and I'm glad to share that in quarter 3 FY '24, our past CCD investor, namely Piramal has converted their CCD's into equity worth INR 160 crores utilizing the IP process and internal accruals, we have redeemed our term loan to the tune of INR 72 crores till date in FY '24. As a result of our total finance cost for the year, including -- includes INR 29 crores of nonrecurring cost towards interest and on CCD and the onetime impact of INDS on term loan closures where we have closed -- short closed the loans. The nonrecurring interest cost is largely expensed is neutralized by onetime income of INR 27 crores pertain to sales of the sales of land, INDS impact of loans and loan closures. A large portion of these nonrecurring items which come in quarter 3 FY '24 numbers, I'm glad to share that adjusted PBT, excluding the impact of these nonrecurring items grew by 68.7% to INR 83 crores during the year. PAT for the year stood at INR 59 crores with 17.2% margin. We expect PAT margin to improve from H2 of FY '25 onwards on account of lower finance costs and improving our efficiency. Looking at the quarterly number, revenue stood at INR 93 crores, which is a 9% growth on a year-on-year basis. This growth is led by strong sales in both energy and aerospace segment. The consumption has slightly increased from 12.5% to 17% due to change in product mix and revenue mix. Employee cost has decreased during the quarter, as I mentioned last quarter also that we are working on various initiatives, and this has decreased by 2.7% in quarter 4 compared to quarter 3 FY '24. Operating expenses was in line with the business. During the quarter, EBITDA stood at INR 31 crores with 33.8% margin. Depreciation has slightly increased as we have done CapEx during the year, resulting into increase in sales and capacity. PAT for the quarter stood at INR 15 crores with 16% margin, which is our long-term ambitions, and we try to improve it further during the quarter. With this, I conclude our presentation and open the floor for question and answers.

[Operator Instructions] The first question is from the line of Bala Murali Krishna from Oman Investment Advisors.

First of all, I have 2 bookkeeping questions for this nontrading finance cost. So when we can expect it to be 0? And one more thing is the receivable side, I think trade receivables are almost at 50% of the FY '24 revenue. So is it a normal scenario? Or do we have any one-off for this kind of trade receivables in this quarter?

Yes. So onetime income has already been finished because we have repaid all the CCDs and there is no Piramal impact going forward. So going forward, you see the normalized mix cost from quarter 1 onwards and the same is also reflecting in this quarter. Coming to the receivables part, we have a normal cycle of around 120 to 150 days carried to our customers. And if you see we have done almost around INR 180 crores of sales in H2 that was reflecting into our receivables.

Okay. Understood. And second on the deals which we have won with Rolls-Royce and 2 more deals. On one deal, we have disclosed the contract value. And the remaining 3 deals on a broad basis, what would be the potential of these 3 deals like we have in this last deal, we have around INR 300 crores potential. So what would be any combined revenue potential of the 3 deals, which you have won since January?

So I'd like to say that during the call, Mr. Chopdar briefed that our total order book is upwards of over close to about INR 3,000-plus crores. So if that is what you're asking. So all of these contracts put together that we are signing with our customers have a total cumulative value of over INR 3,000 crores. Now these contracts have to be executed over 3 years, 5 years, 7 years or 10 years depending on the duration of the contract. These are long-term contracts.

Okay. Understood. So whether we are developing any new products to grab more wallet share from the existing customers. Can you throw some light on that? And lastly, on this new facility, when we can expect it to be on the commissioned stage?

Yes. So as we mentioned, like let's take an example of Rolls-Royce. Now Rolls-Royce is one of the key customers to us. And we are very proud to say that we got this very critical components of engine to India, right? And if you see there are 2 aspects in this. One, getting the foot in the door, right? So there are so many engines being manufactured by Rolls-Royce in the military application, defense applications. So we got a chance for the first to enter in the engine programs. Now example, just give you an example of, say, example, they've got 10 engines and they've given us 2 engines to participate and start the production cycle of that, development and production. So as we develop, as we produce, the doors were open for 10, not for 2. So if you see a look at a longer picture, it is very, very good to see for the longer picture, not just for this one contract. There are many more which are in the pipeline. Then comes the civil, the commercial aircraft engines. So this is a step -- first step which got our foot in the door. That was the most important. And now it is all that we start producing parts and the qualification goes on, and you can see the revenues coming from FY '25 from this and the new facility which is coming up, which we are anticipating to get the FY '26 revenues out of it.

Okay. Understood. Lastly, on this Baker Hughes, they are our existing customer or they are new customers to us?

So see, in oil and gas, as we penetrated 2020, we were trying to build this as a diversification. And again, there are very critical parts in the oil and gas division, right. The facility what we have, the equipment what we have very fungible and we just picked up the parts which are required as a very high specialized components. So in oil and gas also, we found that there are certain components which are very high critical in application. And this facility can be utilized the best way to produce those parts. So it was a strategic call of picking up Baker Hughes for coming up. And as we entered with them, the audit cleared and all the leadership meeting happened and then we entered in a very long-term agreement. So it was a strategic call. It was very well planned.

[Operator Instructions] The next question is from the line of Kamlesh Jain from Lotus Asset Managers.

Congrats for the excellent performance on financial year. And sir, just one question on the part of the order book. how long or what period this order book is executable over next 3 years, 4 years?

Yes. So major, if you see, it can be from 3, 5 to 7 maximum. These are the years in which we sign up these order books. And this, as I mentioned in the previous question also, as we -- we are just adding up that. Now as I told you in Rolls-Royce, we got 2 engine programs, we can expect another 6 or 8 or 10 engine programs. So these are certain things we are blocking the capacity with these contracts.

And sir, like how much would be the CapEx we would be spending like over the next 4, 5 years? Because spending on CapEx would result in this revenue getting -- or order book getting executed. And as you have mentioned earlier as well that you have asset turn. So how much CapEx would be doing for next 5 years?

For this year, we have planned to deploy INR 120 crores, okay? And as the equipment are very specialized, right, as we all know that we are in a very specialized thing, we have deployed the proceeds of IPOs from the first quarter of this year. So as I mentioned earlier also, the FY '24, '25 was very well planned that we will have a 25%, 30% growth these 2 years, which we have successfully picked up '24 and on track of '25. Now whatever the CapEx which have planned is for -- it will be incremental from FY '26. So this CapEx, if you see the effect, it will come from FY '26 from the new facility.

But, as we want to reach like INR 4,000-odd crores top line in next 5 years, then we need to spend roughly around, say, roughly around INR 1,800-odd crores CapEx. So are we on that part? If we want to achieve incremental turnover of INR 3,600 crores over next 5 years, we need to spend roughly around INR 1,800 crores CapEx. So how [indiscernible].

No, not necessarily, Mr. Kamlesh. That depends on the product. That depends on the product mix. So what we have done is we -- whatever orders and contracts we have committed and we have taken and we have already committed to our customers, the CapEx is planned only specific to the contracts what we already have, right? This is nothing called future. Whatever we have signed up, whatever orders we have, the CapEx is very well planned for that particular thing. As and when the product mix changes, as and when we go and see like we are into military and defense now. In commercial aspect, we will have a different kind of investments. Then if you go in oil and gas, there is a different kind of investment. So we are well diversified, and we try to take the most advantage of the facility what we have, which can cater to all the 3, 4 segments which we are in. We are not depending on one particular -- the whole facility doesn't depend only on one particular vertical. All the 4 can be -- this facility can utilize all the 4 verticals. So that was the original plan.

The next question is from the line of Mahesh [Bendre] from LIC Mutual Fund.

Sir, you mentioned that the new facility expanded facility, which is like a 10x in terms of manufacturing capacity compared to what currently will operation in FY '26. So FY '26 could be the year when it will start contributing? Or is it FY '27 when the contribution will come?

Thank you for your question. From day 1, we have been past when we -- I remember I recollect my the sales when we started that FY '24 and FY '25 what existing capacity we have with a growth of 25%, 30% per annum. That is what we have projected. And all this planning and the proceeds what we are utilizing is incremental from FY '26. And if we have got into 10x, if you look at the order book, this is -- we have it as on date, right? And there are many more which are lined up. There are many more, as I mentioned, from defense, we are going into civil, we are going to commercial, we are going in many directions. So the growth is very big massive. So to cater that, then we have a plan because factories cannot be built now and then when we have already visualized 10x size. So there is a basis behind it why we have chosen to go 10x. So the incremental will come from FY '26.

And sir, what is the current capacity utilization of existing facility?

It's around 80% to 85%.

Okay. So still, we are expecting 25% growth in FY '25?

Yes, yes, yes. This was the plan. This was the plan from day 1. This was the plan from FY '24. We had a thing that we will grow 25% to 30%, but luckily, we grew 35%. The same thing with FY '25, we are on track.

So FY '26 and '27 could be a quantum year for us in terms of...

Yes, you can see a big -- I think you can notice a shift and a movement, I should say that from FY '26.

The next question is from the line of Jeevan Patwa from Sahasrar Capital.

Congratulation for good set of numbers. So I just want to understand what is the composition of the order book? How much is it from the aerospace and defense and how much is from power and how much is from oil and gas?

Yes. So I can give you some tentative numbers, right? And I can just -- just a minute, I'll just open the page. So if you notice, we have around oil and gas and energy, if I [indiscernible] this both, that's amounting to around INR 1,500 crores and around INR 1,700 crores from the aerospace and defense. These are all fine.

The participant got disconnected. Next question is from the line of [indiscernible] Gandhi from Anand Rathi.

Sir, just one question from my end. So on a segment-wise basis, could you give a bit more color to your revenue guidance? You have guided for a 25%, 30% growth, but could you give a segment-wise guidance on how you are seeing growth in each segment?

Yes. So okay, happy to do that. So overall, as a business, like Mr. Chopdar was saying, when we -- so you would have seen that we've grown from about INR 122 crores in FY '21 to about INR 340 crores in FY '24, right? So this has been the growth. Now we anticipate the blended growth for the business is going to be 25% to 30% even this year, right? But if you look at each of our segments, so energy business will continue to grow at 25% to 30%. Aerospace also has a larger growth, but you can assume that it will grow at least about 35% to 40%. Oil and gas, because the base is smaller, it would potentially grow 2x or 3x also.

The next question is from the line of Dipak Saha from K.R. Choksey Shares & Private Limited.

So first of all, congrats on a good set of numbers for FY '24. My first question on the inventory side. So if you kindly share the breakup, you have INR 132 crores worth of inventory. So how much would be your raw material work in progress and finished goods?

Yes. I will take -- so you have to understand this inventory into 2 parts. One is the inventory, as we mentioned that this is for the long term, where we are using this particular inventory for the part where we have to order the minimum order it has to be kept for longer period of time. And to be very precise official, we have raw material to the tune of around INR 52 crores to INR 53 crores, work in progress to the tune of INR 61 crores and balance are other consumables and inventory to the tune of around INR 15 crores, INR 16 crores. And also, we have signed long-term contracts with the DE this year, as we have mentioned in our press release. So we are keeping some stock for those particular contracts. That's why the inventory is looking slightly higher at the end of March end.

Okay. Okay. So sir, what I was trying to understand out of it for the qualification sale, as you said, you need to take a lot of inventory. So how much out of this would be for the qualification?

Total, it will be around INR 35 crores -- roughly INR 30 crores to INR 35 crores number you can take for the qualification part.

INR 30 crores to INR 35 crores.

Yes.

Okay. And second question is earlier, you alluded to the fact that we are targeting for indigenization of raw materials to normalize the working capital to much better numbers. So what is the progress on that?

So we have done quite a good progress in quarter 4 of this year where we have got 2 of our key raw material qualified with the Indian partner. And we are on the track and probably in FY '25 and FY '26, you will see the impact on the inventory side because whatever we have to purchase, we have already placed order based on the previous orders and previous order book and the further increase the incremental purchase what we do, we start from FY '25 onwards, because they have just got qualified and we can't place orders right now because we have already placed on the existing supplier as the lead time for these inventories are a bit higher.

Okay. And one last thing from my end, sir. So you have delivered decent 35-odd percent growth in FY '24. We are talking 25%, 30% sustainably for the next few years, right? And we have INR 3,000 crore order book. And when we look at your balance sheet, specifically on the freight side, we are seeing those numbers going down. So creditor days are kind of going down. So when we are targeting this kind of growth on the other side, our creditor days going down and debtor days are also kind of elevated. So will we be able to sustain at this level of debt levels that we hold right now or we might resort to higher level of debt going ahead to manage the working capital.

No, I think -- so Vishnu here, I'm just trying to understand, I think the number of trade payables or the number that you're sharing, can you just expand on that because we didn't quite catch that.

So full year payable on FY '23 was INR 576 and for FY '24, it's around 396, right? So as an effect, if you compare with COGS, then your cash conversion cycle is going up for FY '24. So how we are going to manage this? Is there any change with the trader days or terms that we are getting less number of deals as far as this thing is concerned from the suppliers? So that's why I was trying to understand how it will impact us to manage the working capital for FY '25 and FY '26? How does it work? If you can share some color.

Yes. So if you see my strategy today, it's around INR 70 crores plus in my balance sheet, and we have enough cushion available to manage the FY '25 numbers. And for FY '26, as we mentioned that we have already have a proceeds from IPO plus we can take the additional working capital lines from the bank as my current debt is close towards working capital debt is 0 and there is a term debt hardly of around INR 25 crores to INR 30 crores in my books at this junction of time. So we have a sufficient cushion available for the growth, and that should not be a problem for us going forward.

Sorry to interrupt sir, I will request you to rejoin the queue for your followup. [Operator Instructions] The next question is from the line of Vishal Singh from Makrana Capital.

This is Micky here, not Vishal. Congratulations on a good set of numbers. I specifically had 2 questions, guys. So number one, assuming in fiscal '25, you grow at 30%. And I clearly remember you had said that for you, fiscal '24, '25 was the year where capacity is going to be constrained. So given that you were at INR 340-odd crores for fiscal '24, I slap in by 30%, that gets you for fiscal year '25 at approximately INR 445 crores given that we are long-term investors and you mentioned that starting fiscal year '26 will be the inflection point. I mean what kind of revenues are you guys projecting for fiscal year '26 to demonstrate that it is really an inflection point from a revenue perspective? That's my first question.

Yes, Micky, I think you're right, and thanks for the question. And we -- right from day 1, we have been saying '24, '25 is been very well planned, and we have achieved FY '24 as per the plan and on track for FY '25. So we are quite happy with what we have planned we achieved in FY '24 and we'll be achieving in FY '25. There are no constraints in that. Now if you see that we are deploying around INR 120 crores this year, and this is incremental to whatever we are doing for FY '26 -- FY '25, this will be seen from FY '26. So this is a continuous process. As you noticed that these machines, equipment, they are not on the shelf, right? They have certain delivery times and it will come in phased manner. And you can see the deployment of these revenues, we can -- if you -- Vishnu can take you more in detail if you try to see the asset turn what we have been talking and based on the asset turn, more and more equipment as quickly as possible, we try to get in the facility. Today, we have massive order book. We have massive customer base, and we are really coming up in a very, very great show. You could see April 24, the President and CEO of GE Vernova coming in blocking the capacity. That gives a big, big gesture to our business and to India that she came in all the way, did the ceremony, flew back in 6 hours. That means they want us to raise this facility as soon as possible. Now it depends on various factors on the equipment. Now these equipment are majorly imported, right? And we have -- they have a long-term deliveries. So we are now very, very desperate to get this facility up and running as we have to execute and deliver these contracts. So it is that quickly -- the more quickly the equipment comes in, more performance you can see in this case.