Indo SMC Limited ($544681)

Ladies and gentlemen, good day, and welcome to the Q4 FY '26 Earnings Conference Call of Indo SMC Limited hosted by EquiBridgeX Advisors Private Limited. [Operator Instructions] Please note that this call is being recorded. I now hand the conference over to Ms. Dhruvi Mandaria from EquiBridgeX Advisors Private Limited. Thank you, and over to you.

Thank you, and a very good evening to everyone. Welcome to the Q4 FY '26 Earnings Call of Indo SMC Limited. From management team, we have with us Mr. Neel Shah, Managing Director and Chief Financial Officer; Mr. Nitin Patel, Chairman and Non-Executive Director; Mr. Dipal Patel, financial Consultant. The call will begin with opening remarks from the management, after which we will open the floor for Q&A. With that, I would now like to hand over the call to management for opening remarks. Thank you, and over to you, sir.

Good evening, everyone, and thank you for joining Indo SMC FY '26 Financial Earnings Call. A warm welcome to all our investors, analysts and stakeholders joining today. FY '26 has been our important year for Indo SMC, also is the first financial call after listing. We sincerely thank all our shareholders and stakeholders for their trust and continued support in our journey. Indo SMC focus delivering high-quality and competitive solution in our utilities in SMC FRP product. Over last few years, we have built strong manufacturing capability supported by the manufacturing across Gujarat, Maharashtra and Rajasthan along with in-house testing and technical capability. During FY '26, we continue to strength our manufacturing infrastructure and expanding capability, improve operational effectiveness and enhance customer relationship across the industry. We also focus on expanding our approval base and in -- business across the utilities and industry customers. Right now, we have the 20 states and growing the Pan India presence and also expanding other countries also. Coming financial performing FY [ '26 ] has been a strong year across all the key parameters. Thank you.

Should we begin the question and session, sir?

Yes.

[Operator Instructions] We will take our first question from the line of Samarth Kanabar from SKS Capital.

Congratulations on a good set of numbers, sir. [Foreign Language]

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[Foreign Language] FY '27 INR 450 crores to INR 500 crores revenue [Foreign Language] Am I correct?

Yes.

Great. Great. Great. [Foreign Language] Just can through some light on. [Foreign Language]

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So is this margin sustainable for the next few years?

Yes, it is sustainable. [Foreign Language]

Great. Great. Great. Sir, if you can just throw some light on our utilization. [Foreign Language]

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Okay. Are you planning in CapEx in the next 2 years?

Right now, we are first of all target [Foreign Language]

Okay. Sir, my question is [Foreign Language]

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Okay, sir. but last few questions I have, if you just allow me.

Okay, sir, carry on.

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Right now, it's a -- market, because of the geopolitical -- because the main product we were aiming in our product in SMC and FRP. [Foreign Language]

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Last question on our buffering cycle. [Foreign Language]

Actually, it's sustainable, 40 to 45 days actually [Foreign Language]

[Operator Instructions] Next question is from the line of Ashish from Capital.

Very good results and congratulations to you for that. [Foreign Language]

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Yes.

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Right now, we are focusing on debt, but [Foreign Language]

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Next question is from the line of Kushal from Research.

Can you hear me?

Yes.

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[Foreign Language] You have like 60%, 70% sales in Gujrat. So currently [Technical Difficulty] [Foreign Language]

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Next question is from the line of Priyansh Nidhi NGP Family Office.

Hope I am audible?

Yes.

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I request you to join back the queue, please, as we have participants waiting for their turn. Next question is from the line Darshil Jhaveri from Crown Capital.

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Okay. Okay. Fair enough. [Foreign Language]

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Next question is from the line of Avi Jain from AJ Capital.

Hope I am audible?

Yes, sir.

First of all, congratulations. I think we have over done what we have target from the [Foreign Language] I wanted to understand what are the planned working capital, because I think [Foreign Language] topline growth. I think that every year we would INR 50 crores to INR 60 crores of capital. funding but even the growth is a bit difficult. So -- further dilution or [indiscernible]

[Foreign Language] we plan out after September onwards. [Foreign Language]

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Next question is from the line of Rajesh from VTG Capital.

Congratulations on [indiscernible] So my question is related to 2000 If you can share some highlights or updates like what is happening in that front? And also are we going to have any collaboration with any MNC companies like EVV snider or any -- even companies or any system integration of -- data center or any other industry. So if you can just answer these two questions.

Rajesh, may I request you to mute, please, as background disturbance in your line.

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Next question is from the line of Deepankar from CCV...

Am I audible?

Yes.

Sir, revenue has more than doubled and so is the PAT for FY'26. So can you brief the mix between the volume growth and the price utilization of the company?

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Sir, one last question. [indiscernible] for FY'27?

Pardon, [Foreign Language]

Can you expect any in our PAT margin for FY'27?

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Next question is from the line of Shalin an individual investor.

Am I audible, sir?

Yes.

Yes, sir, I wanted to understand the CapEx that we -- In which segment are we doing? And how much the capacity -- how much revenue will we be able to generate after the CapEx...

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Okay. Sir, my second question is that in the last Con Call [Foreign Language] what is the update on that?

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Next question is from the line of Anil an individual investor.

Just two, please. The first one is on -- it's a long-term question. So [Foreign Language] reach INR 1,000 crores, which is about 50% kind of revenue growth. But [Foreign Language] for the next 5 years, 10 years, what is the long-term goal for the company [Foreign Language] What kind of growth rate can we maintain after the INR 1,000 crores? That's the first question. And the second question is [Foreign Language] so which end market should grow? Is that -- I understand that it's more of a power sector, but is it like solar power or is it any other kind of power? And also are you trying to get into more end markets?

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Next question is from the line of Naman Agarwal, an individual investor.

Sir, I have a question that -- at the time of IPO, we had appointed monitoring agency. My question is that report came that...

Naman, use you handset mode, please. Your audio is not clear. Use your handset mode, please.

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No, it is muffled. Use your handset, please.

I'll join back the queue.

Next question is from the line of Girish from Sri Consultancy and Real Estate.

Am I audible?

Girish, please use your handset mode.

Am I audible now?

There is some disturbance. You can go ahead with your question.

Sir, my question is -- sir, can you please provide the current [indiscernible]

Girish, please mute your line.

[indiscernible]

Girish, can you repeat your question, please. Use your handset mode.

Sure. [indiscernible]

Girish, I'm sorry to interrupt. There is a lot of background noise on your line. Can you move to a different room, please.

Now, am I audible?

Yes.

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Girish, sorry, your line is again not clear.

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In current date, we are planning -- around 450 to 500, but it depends on situation of all the by geopolitical and [indiscernible] [Foreign Language]

Okay. Okay, sir. And sir, in March [Foreign Language] what will be the expected execution time line and how much of the order book is likely to be executed in this year '27?

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Girish, I request you to join back the queue. Next question is from the line of Sagar from Capside Advisors.

Congratulations for the great performance. I've got some technical questions. So basically, wanted to understand that -- see the presentation, there I see that citizen -- are upto 11 kV is being manufactured. So is there any plan to go up to 33 kV? And -- current transformers too?

We are planning -- right now, the update our [indiscernible] And then after -- other products have in queue. So after that you see we add on. Otherwise, we have the plan in -- meter right now. [Foreign Language]

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Yes.

[Foreign Language] dual certification to sell in the U.S.?

Yes. U.S. 94 is not [Foreign Language] follow the procedure of product in that. [Foreign Language] [ UL1940 ], we required. Already, we follow -- compliant and -- We already follow that in FR television. So this is what happening in our exporting unit. So we plan in this to export. So we follow all the parameters.

Right. And what is the status of CR? So basically, CR is in-house manufactured or it is purchased from outside?

What, sir?

CR04, this is part of the -- transformers. So manufacturing in-house or it is externally -- so basically, you're externally dependent?

Right now, we are externally dependent. Actually, we are -- in further company Korea, China, Japan, Taiwan, all that are providing the cores and all that.

Right. So you don't see any issue in receiving and importing those cores to India for manufacturing considering the current situation?

It will not [Foreign Language]

We will take our next question from the line of Rajender Verma, an individual investor.

Congrats for the good set of number. [Foreign Language]

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[Foreign Language] INR 2 crores per day?

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As there are no further questions, I now hand the conference over to Dhruvi Mandaria from EquiBridgeX Advisors.

On behalf of Indo SMC Limited and EquiBridgeX Advisors, I would like to thank everyone for taking the time to join today's conference call. Should you have any further queries, please feel free to connect with us at [email protected]. Thank you once again.

Thank you. On behalf of EquiBridgeX Advisors Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

Thank you, ma'am.

Thank you, sir.