Interarch Building Solutions Limited (INTERARCH) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Interarch Building Solutions Q1 FY '27 Earnings Conference Call. [Operator Instructions]. Please note that this call is being recorded. I now hand the conference over to Mr. Arvind Nanda, Managing Director. Thank you, and over to you, sir.

Thanks for taking time out to join the call. So I think people are now fairly familiar with what Interarch does and what is a pre-engineered building, a combination of engineering, design, marketing, production, delivery at site and erection like a nut-and-bolt assembly of a plant of any size or any type. So over the years, Interarch has developed itself and made itself capable of designing and engineering and executing various -- very, very complex projects, very complex industry, paint lines, EVs, your renewables, lithium batteries, data centers. And going forward, we are concentrating on making it capable of providing steel solutions for nearly every kind of building, which may come up in the future. So we are concentrating on heavy structure requirements, where buildings like high-rise buildings, data centers, large commercial buildings, large -- heavy buildings like power stations or steel plants, fertilizer plants, port infrastructure. The basic idea is to convert Interarch into a complete building solution that whatever kind of building you have, we may be able to engineer it, definitely able to detail it, produce it in-house, deliver it at site in a very proper sequence and pieces, ready-made, everything done and just assembled at site as a nut-and-bolt assembly. More and more people in India are looking at this as a solution for their construction because it is very fast. As we all know, speed is nearly you save about 50%, 60% time, plus all the work is off-site. And it's a lump-sum situation where one company takes responsibility for everything. So for the client, it's a very win-win situation. But as Interarch, as a pre-engineered building company, as a building steel solution company, we have to make ourselves capable. That is the key to this business. If we are not capable of doing these kind of buildings or the customer doesn't perceive us to be capable, then there is no way that we can get orders. But I'm very proud to say that today, we are perceived as one of the top players and most of the challenging jobs, challenging clients, very complex clients do come to us for even their newer and newer requirements, knowing that Interarch will be able to or can and if they do and they say yes, then they will be able to execute the challenge, whatever the new kind of buildings may be. So in preparation of that, we have now started our heavy structure plant in Andhra Pradesh on a trial production basis, the official production -- commercial production should be by end of this month, early next month. In the meanwhile, we have also started the Gujarat pre-engineered building plant, our first plant in Gujarat on 9th of July. The Phase II should be done by October. So that will be a full-fledged plant during the year, adding to our capacity and making it our fifth fully integrated plant. The second phase of the heavy structure at the same location, the civil works has already commenced. And we hope that the second phase will also be done by March and in continuation, the third phase by December of next year to make it a full plant catering to about 75,000, 80,000 square -- 80,000 tonnes of heavy structures. Because we see a lot of demand coming from data centers and high-rise buildings. Parallelly, we are also working on a lot of export markets. We have been exporting to Africa and neighboring countries, but U.S. and Canada are very much on our horizon. We have found good buyers over there. We have found a good partner in Canada a couple of them as well as in U.S. who have started buying building from us. And we feel that as they are delivered, the numbers and the quantity and volume of exports will keep going up. We are concentrating on building up that market. We are participating in more and more exhibitions and conferences to meet more builders and convince them that we can do the kind of buildings that they want and deliver to them on time. So that should give us a good new stream at least in '27, '28. For our projections, as we have mentioned, we will meet INR 2,150 crores to INR 2,200 crores in this year. We are well on target. We have had a 30% -- 25% increase in first quarter year-on-year already. We have a very good order book. We have increased our order book in the last 3 months to about INR 1,860 crores now. So keeping in view that we want to do at least INR 600 crores per quarter going forward for next 3 to 4 quarters on average, they could be up and down. We started booking orders on that basis. There are a lot of inquiries, a lot of business available in the market. But like I always mentioned that we need to take orders which we can deliver on time, because that is the most critical aspect of being a pre-engineered building company with the heavy structure also starting and at least in the next year, giving us the full capacity of Phase 1 and partial Phase 2. We want to revise our projections for '27-'28 to INR 2,700 crores from INR 2,500 crores. EBITDA and PBT, et cetera, we are keeping at the same level. But as we go forward, and I think our operational leverage and our internal control of expenses ticking in, we should increase our EBITDA. But currently, we are aiming for 9.5% to 10% in '27-'28 and '27 -- '26-'27 remaining as we had projected. So we are well on track for our projections. And I think now I will open the floor for questions so that a lot of points can come up during your questions and answers. Thank you. To Manish now.

Yes. So thank you, sir, and good evening, everyone, and thank you for joining us today. As Mr. Nanda said, we commenced FY '27 on a positive note and the broad environment and the capacity expansions has already been briefed by Mr. Nanda already. So I would like to just give you an update on the order book and immediately followed by the financial highlights, and then we have the questions and answers. So our pipeline continues to remain healthy. reflecting sustained customer confidence and improving investment activity across the industry. We operate virtually in all industries, including the sunrise industry like the semiconductor, EV, data centers and all of those kinds. And as of 31st July '26, our order book stood at INR 1,864 crores, significantly better than where it was 3 months ago when we addressed the last investor meet. It also includes a major order for a major energy company in Baroda, which is INR 165 crores. And we continue to remain disciplined in our order selection, quality of the orders, focusing on projects that align with our execution capability, strategic priorities and profitability objectives. And our diversified customer base and integrated business model position us well to capitalize on the opportunities emerging across India's industrial landscape. Looking ahead, we remain focused on the execution, strengthening the customer relationship and expanding our manufacturing and engineering capabilities, which are our core of the business. Our integrated business model backed by our strong in-house engineering does help us in achieving our objectives quarter-over-quarter, year-over-year. While the first half of the financial year is expected to remain relatively measured due to the seasonal factors in our business, we expect execution momentum to improve progressively as we get out of the monsoon and over the coming quarters. And with a robust balance sheet, expanding manufacturing footprint, disciplined capital allocation and continued investments in future-ready capability. We remain well positioned to capitalize on India's evolving industrial and infrastructure investment cycle. Coming to the financial highlights for the quarter 1 of FY '27, revenue for the quarter stood at INR 460 crores, registering a year-on-year growth of 20.7% compared to INR 381 crores in the same quarter last year. EBITDA for the quarter stood at INR 39 crores as against INR 32 crores in the last year same quarter, reflecting a growth of 24.6%, which is more than the revenue growth, so the pricing is better. EBITDA margin for Q1 FY '27 remained stable at 8.6%. Profit after tax for the quarter remained flat at INR 28 crores as a function of the other incomes, which I will explain later. And the total order book, as I explained, is in upwards of INR 1,864 crore. So thank you very much, and we can open the floor for the questions and answers.

[Operator Instructions] The first question is from the line of Sudeep from AMBIT Capital.

Thank you for the opportunity, sir. My question was on the revenue run rate for Q1. So you mentioned that for 9 months, the revenue run rate for FY '27 would be around INR 600 crores per quarter. So this time, it was around INR 460 crores, lower than Q3 of last year and Q4 of last year. So what was the reason, like what was the reason behind lower kind of revenue number for this quarter?

See, our -- normally because of the seasonal conditions, of clearances at site and what's happening at site, you will notice that nearly every year, the pickup is -- the first quarter is lower than second quarter, and then third and fourth, that is how it picks up in any case. So there is nothing unusual about it. And so order book is in place, capacity is in place. It's just that during these 2 quarters, the first 2 quarters, sometimes the clearances and site conditions don't allow us to dispatch these customized materials. So that's why I said, we are aiming for INR 600 crores a quarter. We have to actually do about INR 1,700 crores in the next 9 months to meet our target. So we will -- it will vary a little bit in each quarter. It's not going to be flat. So it could move up to, say, INR 550 crores and then INR 600 crores and then INR 620 crores like that. But that is the standard sort of trend we have seen in the past as well. So nothing unusual.

Okay. Sir, it was actually lower than Q2 of last year, and we had a commissioning of capacity, 40,000 MT coming up in September, October '25. So that was the reason why I asked, like why was it even lower than Q2 of 2026.

Like I said, a lot depends on our clearances that we get. Q1, Q2 can be different, depending where our work is going on. Sometimes in the first quarter, there is rains or there is no clearances at certain sites because we are doing work there and the sites are flooded and work cannot be done. And the second quarter becomes better and sometimes it is vice versa. So there's nothing to worry about it. And what we got into production last September was the second phase of the Andhra plant. The first phase was already there. The second phase, which is about 20,000 tonnes, came into play in September last year and is being utilized now. So there is no reason to worry because our business is not always the same every quarter. First 2 quarters can vary. So nothing to worry about it.

Sure. Got it, sir. Sir, my next question was on the announcement of QIP. So that is like INR 250-odd crores. So what would be the kind of envisaged utilization of proceeds?

We had earlier got approval for INR 100 crores in the Board meeting 6 months ago and got the shareholders' approval. Then we figured that there's a lot of change happening in the Indian landscape of industry, and we need to speed up our expansion plans. So the basic fund utilization is that the Phase II and Phase III of heavy structure, which I mentioned earlier, in Andhra itself will be about INR 150 crores. We speeded it up. Earlier, it was going to be a little slower on phase a year. Now we are doing in 1.5 years, all 3 phases. Then another plant in Gujarat, to meet our pre-engineered building requirements we will need another plant in Gujarat, for which we already bought the land. So that's another INR 50 crores to INR 60 crores and INR 50 crores to INR 60 crores will be required for our, what we have signed, our MOU with the Canadian company to set up a 100% export unit for steel structure, which is called open web joist system to be exported 100% to them. So that is overall sort of broad figures, about INR 140 crores, INR 150 crores in heavy structure, INR 50 crores to INR 60 crores in the Gujarat Plant 2, Plant 2, not Phase 2 of this at Plant 2 and the open web joist system, 100% export unit. And to just give you an idea, the last time we raised funds was in the IPO of about INR 180 crores. Until today, we have already spent about INR 240 crores in CapEx in the last 2 years, 2 years, say, from first April '24 to now. So the idea is to speeding up the expansion and not wait for internal resources because right now, the market is picking up and we feel that we should be a major participant in the market.

The next question is from the line of Anuj Shah from PhillipCapital.

Congratulations on a steady set of numbers. Coming on to the JV that we signed with ER Steel in Canada. Could you just elaborate on the rationale behind this partnership and synergies that Interarch expects to derive in terms of say, technology or product capabilities, customer acquisition? And what sort of revenue potential do you envisage from this venture over the next couple of years, 2 to 3 years' time frame?

See, we had met this company a year, 1.5 years ago for basically exports to pre-engineered buildings to Canada and North America. So while we were talking to them, and they visited our factories and met us. And they felt that we had the capabilities because North American market requires very high quality and very precise deliveries. They are very conscious of that while they are able to pay the price for it. So they felt that there is a system called open web joist system in U.S., which is very commonly used, but only in the North American market. Very few other countries in the world and India, of course, doesn't use at all. So they felt that there is a huge market in North America. And if we collaborate, I mean, we concentrate on the marketing, on the manufacturing and the factory part of it, and they concentrate on the sales and the engineering and getting the customer that we can build up a good market for it. They have been buying in the past from other players in U.S. And it's -- there are not that many players because this is an item which requires a lot of manpower and manufacturing and U.S. and Canada don't seem to be very competitive in. So the idea was that net set up a joint venture. We concentrate on the manufacturing part, make the item they sell, they send us the orders, we manufacture and we supply to them and the Canadian and U.S. part is looked after by them, whether it is sales, whether it is collection, whether it is installation, everything is looked after by them. So we are very keen overall to build up an export market. So we feel that exports should be an important vertical going forward. And right time to build up is now when there's a lot of demand from North American market also in other countries as well. And we are in a good position to sort of give our expertise that we have developed over the last 20, 25 years in manufacturing, in design, in quality standard to other people and leverage on that. Exports will be more profitable. Prices there are higher. We will make more profit. The expense on sales marketing is 0. Expense on project management is 0. So therefore, we feel that exports is very important, and this is a part of that overall strategy. Over a period of time, this plant is being set up for about 15,000 tonnes. So I feel that over a period of time, if we take an average price currently, we can take about $1.50. So it will be about $20 million to $23 million full capacity. But of course, it will take 2, 3 years because it's not going to be overnight that we'll get this figure. In our first phase, we are planning about 4,000 to 5,000 tonnes which will give us a sale of about $7.5 million. And so about, say, INR 70 crores, INR 75 crores, with a good -- I would say maybe with a 20% EBITDA margin on that. And capacity is, of course, 3x of that. So in the next 2 to 3 years, I think we should develop into -- the production time in 1 year, we should be in production by 1st July or end July next year. And then it will take us about 2 to 3 years to build up this capacity. That is our idea. Maybe it will be faster. But of course, we will be ready to expand into another phase of this, if the demand picks up, that is how we are planning it. So overall, this plant will give us about $22 million, $23 million of sales from India and a profitability of over 20% is what we are aiming for.

Okay. Understood, sir. My second question is, sir, what is the current capacity utilization that you've done in Q1, sir?

So we have a current capacity of approximately with the Gujarat plant also coming up of about 200,000 tonnes to 220,000 tonnes. And if I'm not mistaken, I think we have done about 190,000 tonnes last year, Manish, is that the right figure?

162,000 tonnes and we had a capacity of 200 at that time, sir, it was about 80%.

[Foreign Language] So you can answer that question in full to them.

Yes. So the last year capacity, sir, was 200,000 tonnes. And with the inauguration of the Kheda plant Phase 1, it has gone up to 221,000 tonnes to be precise. And last year, our sales was 162,000 metric tons. So that's a capacity utilization of 80%. But in our business, the utilizable capacity is about 85% to 90% of the installed capacity. So if I look at the utilizable capacity, we were at about 88% of the utilizable capacity.

And in Q1, how much utilization was done, sir?

Yes. So Q1, our sale is about 38,000 -- sorry, yes, 38,499 tonnes. So 38,500 tonnes is the total volume that we have done in the quarter 1.

Okay. Out of the 2 lakh...

That is correct, yes. So that's about 80% again because the quarterly capacity is 50,000 tonnes. So of that...

Okay. Understood. Understood. As far as the outlook is concerned. So full year, we are aiming for a INR 2,200 crore to INR 2,300-odd crores revenue. But are we also confident of maintaining our margins and because this time, we've done around close to 8.5%, 8.6% kind of a margin. Are we confident of recouping that and I mean shifting away to 9%, 9.5% to 10%, kind of a margin that we've done in the previous years. What sort of margin trajectory are we aiming for in this year and probably next year as well?

Well, we are aiming for a sales target of 2,150 right now. So we are trying to increase our margins. I think as we get into more complex job and more complex clients, I think our margins should go up. And also, again, we are concentrating a lot on our internal economy, better purchasing, less wastage, better recoveries, other costs reductions that we can get as a bigger company to increase our margins internally as well. So we are working on both. And I think margins will gradually go up with addition of exports, with the addition of heavy structures. We are also trying to leverage our present expenses to increase our turnover in these lines. So I think it will show results, but I'm not very sure that it will show immediate result this year because we have to also, whenever we open new plants and new areas like we have done, Gujarat and heavy structure, a lot of expense goes into that in advance of actually the sale happening. But I think on '27, '28, we are quite hopeful that we should increase our margins substantially.

[Operator Instructions]. The next question is from the line of Ronald from ICICI Securities.

Firstly, sir, on the treasury income part. So does this quarter have lower other income because of lower treasury? Does the working capital ratio, especially on the payment side, which you were getting affected last quarter, is it still persisting? Or has it normalized?

No, no, we are in a much better condition. Last quarter, we had explained that a lot of the large projects were in the stage where the billing had been done, money had not been recovered. And we had also stocked a little bit extra because of the prices going up of steel. And on the other side, to get proper supplies, which a lot of people were not able to get, we were paying the suppliers sort of literally advanced payments to buy the steel. So all these 3 questions -- 3 things: together had that negative effect. We are back to positive now. And I think the other treasury is because we are spending money on CapEx. Like I mentioned earlier, also out of INR 180 crores that we raised during the IPO, we've already spent INR 230 crores, INR 240 crores. So the money has -- earlier, the treasury funds were coming in and interest coming in because we had that money with us. Now it is getting spent. So in a way, it is a good thing. And depreciation is also going up. So other income is basically the money that we were holding while we had to spend it. So instead of holding it, we have now built up the capacity. But we will -- that should give us more operational profit going forward, of course.

Okay. Great, sir. Secondly, on -- just a clarification that if there is a large order, then it comes out for tendering then, does that order has already got the design and those things done and there's cut off already. So you now have to bid. So instead of you designing everything I was a little bit confused that if a company, say, mid- to larger size company, if they come out for some plant expansion or anything of that sort. So they should have done estimation of the CapEx, what they are going to do through a consultant or through a designer already rather than PEB players again doing the designing and going for the bid.

Okay. Manish, can you answer the question?

Yes. So I'll answer this, sir. Sir, in our case, any customer who is building a new factory or a data center or any kind of building they -- when we use the word designed for them, it is basically the layout, means how the building flow will be there, where which machine will fit. We do not get the final structural design from either the consultant or the customer. They only do based on the -- they only do the budgeting based on their past experience. For every bid, we only get what we call a design basis RFQ and the architectural drawings basis, which we carry out the entire structural design, not the building layout design, calculate the bill of quantity, how much of which steel is going to get used and then bid. So as far as each building has to be first estimated, then quoted and then the order will come to us, and then we will do the final detailing. There is no design that comes to us from the consultant. That is what our business is.

The next question is from the line of Shubhankar Gupta from Equitree Capital.

First question is that I think, Arvind sir, you mentioned that there were a lot of changes happening in the industrial landscape is a -- just wanted to understand, if you can guide us a bit on that.

I think we lost a little bit of signal. Can you just repeat the question, please?

So I'm saying that you initially mentioned that the QIP of INR 100 crores was canceled out and QIP of INR 250 crores was approved by the Board, right? Because of the changes happening in the industrial landscape, and we [indiscernible].

Mr. Shubhankar, your line is not clear.

Is it audible?

Yes, but we lose you at some point.

Yes. Sorry, okay. So what I'm asking is, as you mentioned in the beginning of the call that we were planning QIP of INR 100 crores earlier, but have done INR 250 crores, right? Because of industrial landscape changes, which were observing on the ground. So just wanted to understand what those changes are and what's happening on the ground. That's one.

Yes. See, what we are seeing is that two things are happening. One is, of course, a lot of the large projects are coming into India because India is trying to encourage through PLI schemes and other semiconductor plants, renewable plants, lithium battery plants, EVs. And now again, the car industry has started moving again automobile industry which was not building for many years because -- so there's a lot of industrial movement because of these very large plants. Most of these industries require very large plants. So therefore, the size has increased dramatically. A lot of the FMCG and paint, they're also coming back. But also another thing which is happening in our landscape is that the steel use, the usage of steel as a building material is also changing. In -- like I said, data centers, high-rise buildings, these are also moving a lot towards steel. So both these things happening together is straining everybody's capacity. So either we bid and take the order, but then we need to have the capacity because these orders are very large. Most of the large orders today, whether it is EV, whether [indiscernible] they're all divided between 2 to 3 companies, but there's no one company which can do it even now. So that is a big change in landscape. One is the size of the projects which the government of India at least is trying to attract into India? And what is happening? And second is the usage of steel and a lot of projects which were not using steel earlier.

Got it. So sir, second question is actually on similar line only. So you mentioned that we have been entering the newer segments, data centers, right, renewables probably. So just wanted to understand like what part of our -- like the Q1 revenue came from these newer segments. If you could help us elaborate a bit on what these newer segments are according to you? And then what percentage of the order book of INR 1,864 crores is from these newer segments? Also of these...

Yes, carry on.

Sir, I'm saying also, are these -- the newer segments only, are they also margin accretive for us?

See, what we are calling newer sectors is that these renewables EVs, lithium battery, data centers, semiconductors, the chips. There are a lot of these, which we are calling the new age industries. So that is coming in a big way in India because Indian government is also trying to attract phones, phone assembly as we have seen the numbers have gone up. So I think this is what we are calling the new age industry. And we have positioned ourselves pretty well to cater to that kind of industry in India. So margin accretive depends on the competition. Yes, of course, as they become larger, you become one of the few companies which can do it. But you are not the only company. So it's not that I can demand whatever I want. But yes, they know that only 2 or 3 of the companies can do this kind of project. So you don't compete with everybody else who can get very low. But here the emphasis of the client also is that the doability. Will these guys be able to engineer design my project in time produce it in time, deliver it in time, erect it in time and in a proper sequence? So those things are in his mind. It is not only a production item because it starts from design engineering and then whole thing has to be delivered in a sequence because these projects are so large that I can't deliver everything and then start direction. I have to deliver in very tight proper sequence. Every nut and bolt for a certain area has to go together with all the columns and beams, then only when it gets installed. So that is how the customer mindset works. So naturally, we earn a little better margin also because the moment the size of the project increases our productivity level also goes up. A INR 10 crores project will be costlier for than INR 100 crores project. Sometime I might have to go lower in price for INR 100 crores project as a margin, but might end up making more. And as I increase my turnover, then actually my overhead gets divided over a larger turnover. So there are a lot of things at play in this business. Sometimes I will take a very large order at a low margin, sometimes I can get good margin. But our idea is to build up a clientele which will give us some good margin, appreciate us, give us a good margin, give us a good value. We deliver a great job and the total CapEx involved in our building even in the lithium battery or that is very low compared to their total CapEx. But it's a very critical item of CapEx for them. If the building is not done on time, there's nothing that they can do. So therefore, it will get -- so our focus is that only that go with the large companies, go with the companies which appreciate partnership with a company like us, which deliver, which are professional in working, which are very knowledgeable in design, engineering, very good in sales. So make yourself a good partner to the world's best companies in India. And then I think it will come. So we can only do the effort. The results sometimes are not really in your control. But our effort is to reach a point where we do make much better profit than we make today. We don't think we are making very good profits. We should do much, much better. But then it's not -- everything is not in our hands, yes.

Got it, sir. No, fair. I mean just my questions on this were from Q1, like what are the new segments which you just mentioned, what percentage of...

I don't have the exact breakup. Manish, do you have the exact breakup or we can send it to them later?

No, we can send it to them later. But I can tell you that part of the -- next part of your question that how much of our order book is through this new age industry and new segment, that's about 35%.

35%. Okay. Got it. That's helpful, sir.

Of the remaining order book. With the new age industries as well as the new sector, which is the multistory buildings and data centers and hotels and all of that.

The next question is from the line of Akshay Kolekar from Dalal & Broacha.

So my question is on basically the PEB business. So based on the recent conversation in the call and from last 1 to 2 years, you are doing CapEx. So is it like this industry looks like quite capital intensive. So would you agree that the sustainability in a growing business is difficult without regular investment that like in PEB industry require CapEx in manufacturing capacity? Like how should investors think about this? Yes, that's it. That's my first question.

See, how much you want to expand capacity? That is the key in this. It's up to you. I mean you don't have to expand capacity if you don't want to increase your business. But we feel that we are in a very good position in this industry. The country is in a very good space where it is expanding fast. People need to build faster, build bigger. They are shifting to steel as a building material very easily. They want to deal with one company as a lump sum, one-stop shop kind of a thing. So we are in a very good space. So we are building CapEx at a speed where we feel that we can cater to the market. And even like I've always mentioned that for us, it is a 4-legged animal. So just by putting money in the factory, which is what is most visible, it doesn't make a pre-engineered building company. I have to make sure that my sales, marketing, design engineering people, project management, certified builders, truck driver, trade, everything is in place, before I can get an order and execute it. Most visible in expenditure is, of course, the factory. But it's entirely up to us. We feel that our clients are growing. They want to give us more business. Many times, I have to refuse and not being able to take it. So that is, I think, a company choice. It's not a business. Otherwise, I don't think we are a very high CapEx kind of a company business as well. But it's our choice. We want to grow fast. We want to take advantage of the changing situation. And we have made up our mind that we have to be in the top 2 companies in India, come what may. And actually, we cannot be in the top 2 companies if we don't have the capacity. There's no question. So that is our decision.

Okay. Got it. And my second question is like how much is our current contribution is from export? And what is your medium-term target for the export mix? Like you are doing the JV with Canadian company. And how the margin profile in export, it is better than domestic business?

No, Manish, can you answer that? No, no, right now exports are very low part, but Manish will give you a detailed answer.

Yes. So sir, if we talk of particularly quarter 1, our export contribution is very little. So out of, let us say, about INR 460 crores, it will be in the range of INR 10 crores to INR 12 crores. So that's answer number one. Answer number 2 is that, yes, whether it is export of our pre-engineered steel building to any country, be it North America or Africa, for which we have order books. Or the new business that we are talking about, the open web steel joist, which Mr. Nanda also clarified that there the EBITDA could be in the north of 20%. So the answer is that for pre-engineered steel building business, exports do give us a little better margin than the domestic. And this special open web steel joist joint venture with Canadian company should give us an EBITDA in excess of about 20%.

And how is the target, your medium-term target for export mix?

Yes. So as we said, that open web steel joist will come up somewhere sort of in the quarter -- end of quarter 2 next year, whereas in short to medium term, we want to do about 10% of our total turnover through exports. That's in the short to medium term, 1 to 2 years.

The next question is from the line of Aasim from DAM Capital.

Just 2 questions. So this time in your revenue breakup for Q1, you have talked about 10% coming from buildings, which earlier used to be 2% or even 0% earlier. So just can you talk about what kind of buildings these were? Was it heavy structure linked or is something else part of it since your heavy structure capacity is only coming up now?

Okay. So in a segment, sir, we specified the 3 segments. One is industrial, which is purely manufacturing units for people. Number two is warehousing and logistics and number 3 is what we specified as buildings. Buildings are basically institutions. So it is -- it could be a flight kitchen, it could be a commercial building. It could be an office building, it could be a multistory building for somebody or a process building. So yes, that particular segment, which was not using steel as much as it is using now is converting very fast from the RCC framed buildings into steel-framed buildings. And this particular segment, which is the building segment, which is like what is not industry and warehouse is what comes here is growing significantly. Even now, our order book has orders for multi-story buildings within Delhi, outside Delhi, at the airport, a hotel, a data center. So yes, this quarter, it did include a data center as well within the 10% that we made in Noida for RailTel Corporation. So that segment is growing.

So these buildings will not just be heavy structures. It could be, I guess, light-weight structures as well, right? It's just a multistory building at the end of the day.

Yes, so a multistory building could use a combination of the heavy structure, plus some part of it will be out of the pre-engineered building manufacturing segment, some part of the building. So that's how you can call it that some of the multistory building could be hybrid that maybe 70%, 75% of it will come out of the heavy structure plant and 20%, 25% could come from here. Because you already have a line operational in Pantnagar Kichha, for making these heavy structures already.

See, heavy structure, just to add to your line. I mean there is no like heavy structure building and light structure building. It gives us an advantage of how to make that building in the most -- in the best commercial technical, like you say, techno-commercial manner because of the variety of items we can make. So then we can give the best commercial technical solution to the customer. So there is no something that either it will only go from the heavy structure or it will only go on PEB plant. For us, the whole thing is a steel solution. What is the best solution and give that and make it in our in-house. That is the idea of making all now after the heavy structure plant, we'll be fully equipped to really make anything for a steel building. That is our idea.

Okay. Okay. Got it. Got it. So basically, steel structure will have part heavy, part light. That's how you want to look at it. So just if I wanted to ask if your existing order book has any heavy structure numbers in it or in your bid pipeline for that matter, that would technically not be -- I mean, not be a relevant question, right? That's how I should understand?