Kalyani Cast-Tech Limited (544023) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to Kalyani Cast-Tech Limited Q2 FY '27 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Naresh Kumar. Thank you, and over to you, sir.

Thank you. Good afternoon. Happy Diwali in advance to everybody, to the stakeholders and their family. I'm Naresh Kumar, Managing Director of Kalyani Cast-Tech Limited. So this is the con call after a long time, and we were waiting for certain tangible things to happen with the company, and then we will apprise all the stakeholders what is going on into the company and what are our plans. So basically, we have sent presentation through the notification. So I'll go through that presentation. And after the presentation, the stakeholders or the attendees of the phone call can ask any query or any question on that. So basically, if I go to the second page of the presentation, it is a brief introduction of the promoter group. I'm Naresh Kumar. I'm a mechanical engineer, MTech in mechanical engineering from IIT Madras, served Indian Railways for 17 years as an officer. And then I have been architect of many innovative ideas on railways like double stack container trains, double stack dwarf container trains and many more. I engaged in design, development of special containers so that we can reduce the unit cost of transportation, special wagons. And the idea is that how we can increase the rail share for the nation, and that will reduce dependence on the petroleum products. Second is Jai Prakash Bangani. He runs his own NBFC firm and based out of Kolkata. So he is helping the company in strategic planning and advise on financial matters. He is a civil engineer, and he is on real estate business in India and abroad, advise the company on strategic important issues. So the next slide is our contribution to the logistics Excel data. We should carry more per wagon per train so that we can reduce the unit cost of transportation. And basically, way back when I used to work for railways, 2004, introduced a very novel idea of running double stack container trains. First train was run on 23rd March 2006 from Jaipur to Pipavav port. In 2008 our idea of running double stack bar container train under normal routes of Indian Railways under wire. And with this idea, we could increase the volume on the trains by 67% so that light cargo can also be able to take the payload of the wagons, and in order to reduce the unit cost of transportation. In fact, the normal 20 feet, 40 feet containers, we have increased the capacity for 20 feet from 30.5 tonnes to 36.5 tonnes. And for 40 feet, we have increased it to 40 tonnes gross weight. So this is also resulting into the more per wagon and more per train. So another innovation has been -- actually, this last 1 year has been full of many innovations. We did a lot of innovations and now we are bearing the fruits of those innovations. The next in line is that we have made the containers in stainless steel so that we can reduce the tare weight of this container and payload can be increased for the [Technical Difficulty]. So we have decreased the payload -- tare weight of these containers from 6.5 tonnes to 4 tonnes so that you can load 2.4 tonnes, 2.5 tonnes extra in these containers. And then in that series, we have innovative very unique type of containers that is foldable containers. So in empty direction, this container can be folded and taken to the destination or origin in multi stacks so that you can reduce the empty running cost of these containers. We have developed the containers for the 2-wheeler. Basically, at present, Indian Railways doesn't have a very optimal solution to carry 2-wheelers. So we developed a container which can carry 72/90 motorbikes and 84 scooters in triple deck. A prototype has been made and tested through one of the major 2-wheeler product manufacturers. So if you come to the next slide, we have said there is a comparison between '24-'25 and '25-'26. The revenue increase is almost 7.7%. PAT increase is almost 20% and EPS also increased almost 20%. So these are the figures which we have given in the presentation. So if you go to the next slide, here the things are into the text and the table, same thing. So the key message from this is that PAT and EPS grew faster than sales, indicating the improved bottom line and performance year-on-year. So in this slide, you can find the guidance for '26-'27. At present, we have for this year that order book of around INR 133 crores and more containers basically we are negotiating more orders. So we expect very soon this will be around INR 170 crores. With respect to basically due to various uncertainties, this half yearly has not started as per our expectations and due to war and so many uncertainties into the system, supply chain got disturbed everywhere. But the second half is going to [Technical Difficulty]. The first half number may not be so great, but we are sure we will catch up into the second half. Despite the geopolitical uncertainties and volatility into the global business, we continue to remain strong order book, demonstrating business resilience purely due to innovation in this sector. So whatever innovation we did in last 7, 8, 9 months, so those are being basically utilized at this point of time. So that is basically our core strength. And because of that, we still maintain the biggest container manufacturer in India. And we -- basically, our -- the order book is also almost 50% comprises the innovations we did in the last 7, 8, 9 months and 50% in the normal containers. So presently, as people may be aware that we have got 2 facilities for container manufacturing. One is at Rewari in Haryana. Another factory is in Gujarat, Kutch where we have been notifying through various notifications that we have developed 144 acres of land where we will be doing all kind of equipment manufacturing, which requires into the logistics and services for the logistics. Rewari facility has got around 7,000 TEUs capacity. Last year, we manufactured around 5,400 TEUs. So we are using almost 75% to 80% of the capacity available at Rewari. Shivlakha facility is this integrated facility. Present capacity is around 10,000 TEUs. Along with that, we have capacity for wagon manufacturing, which is around 2,400 per year. The facility has commissioned 2 railway lines of full length and it has been inaugurated by Honorable Minister for Railways on 15th of September 2026 where we have got 2 full length lines where we can handle 2 trains at a time, and the wharf area along both the lines so that both the lines can act as independent land for handling of the cargo. We have got the container handling equipment on hire at present. We are planning to buy more. And let's say happy thing is that we have got on 10th of September [Technical Difficulty] permission to construct and operate inland container depot. So it will be total logistic platform, integrated platform at one place in around 144, maybe we will be increasing to 150 acres of land, where we will be having the manufacturing of wagons, which carry -- which transport containers. We will be manufacturing containers. And we will be having the rail terminal for the transport of these containers. And then we will have inland container depot, ICD, like a dry port where there will be custom examination of the containers. And this location is very strategically located, very near to the ports, the major port, the container ports like Mundra, Kandla. And another port is coming maybe within a year's time at Tuna, which is near to Kandla. So we are strategically located, and not only strategically located, but connectivity is also very good, rail connectivity and road connectivity. We are on the highway connecting Kandla to Palampur and further to Delhi. So if I update on the future expansion plan, we go to the next slide. So this update is that Gati Shakti Cargo Terminal has been commissioned before time, which we have been telling to the stakeholders and public. It has been commissioned. It has been inaugurated by the Honorable Minister. Basically, this terminal stand-alone may not be a big idea, but it is basically an enabler for my wagon manufacturing, for my container manufacturing, and for the future ICD. We expect very soon, maybe 6, 7, 8, 9 months, this facility, this rail siding, et cetera, et cetera, may be required further expansion. So cargo will not be an issue out there. So inland container depot, we got the permission on 10th of September. And on 14th September, we have laid the foundation for warehousing for this. And basically this construction of warehousing already started, and we expect that maybe by the next financial year -- start of the next financial year, the facility will be operational. With regards to railway wagon manufacturing, we have -- in the Phase 1 we have planned the capacity of 2,400 wagons per annum. The facility is complete, and we have given our application to Ministry of Railway through RDSO for the audit of this facility so that we have been approved that there is one standard called G105. Once we got that approved, then we will be ready for the manufacturing of the wagons. So we have been given notification regarding our own design. So new version design, the RDSO has cleared our Stage 1. So Stage 1 is a very important thing that all the parameters of these wagons are within the schedule of dimension of the [Technical Difficulty]. There is a definite advantage to not only railways, to the trade, if this design is implemented into the market. So basically, with that kind of -- this stage particular becomes very important for us, and we hope that the final approval will be made by 31st March 2027. So as I told you, that expansion of the container manufacturing, we have already created facility of 10,000 TEUs per annum, and the production from this facility has already been started from month of June. We have already manufactured 500 containers from there and given to our customer. So this is basically a very -- location-wise, this has got many advantages because the last -- the empty repositioning cost our customer reduces, that kind of thing. From that area they can pick up a lot of cargo and then with the cargo they can use their containers from the day 1. With regards to the refrigerated container manufacturing, we have already got the technology sharing agreement with a Japanese company to establish specialized refrigerator container manufacturing facility. Next is steel foundry for railway components. So this particular thing presently we have -- we are waiting for that how we go for the wagon manufacturing and all. If required we can immediately start work on that. With regards to the capital expenditure funding, we have been injecting our own fund through warrants and through our internal generation. And then we have got sanction of around INR 100 crore debt from HDFC Bank. Whenever required, we will use that also. So till now, we didn't use any debt. We have been able to manage through our equity funding and the margins available with us, surplus available with us from our normal operations. So this particular facility is a big differentiator compared to any other facility, and this is one of its kind in India where you have got everything under one roof. And everything under one roof is just not a -- it's not a slang. Basically, it has got importance and basically it's a panacea for reducing logistic cost. So that is how we define it as a unique facilitator. So [Technical Difficulty] has been Pristine Logistics, JSW Ports, Western Carrier, Central Warehousing Corporation, Indian Navy, Container Corporation, Amba Coach Builders, Rail Connect, and HTPL. So basically, you will appreciate every time our customer keeps on changing. So we are not dependent on only particular customers. So we keep on increasing the numbers, keep on adding new, new customers. Just like JSW Ports, we have added this time new -- we have given them almost 1,000 containers in this financial year itself, more than 1,000, 1,500 containers. Indian Navy is a new entrant, and then Central Warehousing Corporation is a new entrant. We got orders for almost INR 30 crores from them in recent time. So now I will discuss what new things we are doing, just for the information of our stakeholders. Dwarf container, you may be knowing. Now we have made various versions of the dwarf container so that its utility can be increased. We have made a dwarf container, open-top container, which can carry steel cargo, steel slabs, steel coils, steel sheets, including the TMT bars. So this is a very -- this has become very universal kind of equipment, and now the demand is slowly, slowly increasing for this particular container. Then we have recently tried to transport wooden logs using these containers. So we made the trial. This has also resulted in very promising results, and that can be saving if you can take double stack using dwarf container train all over India, these logs from Gandhidham, Mudra area to the northern part. Another container recently we have tested on the request of Ministry of Railways. Stainless steel container for transportation of the salt, because salt is a very corrosive material and normal steel doesn't stand anywhere with that. It may be spoiled within 1.5 years to 2 years. So we design a container using the stainless steel, and this container has been tested under various conditions. And it has been found suitable. So not only for salt, it can be used for other corrosive bulk material like coal, any other corrosive material, soda ash, et cetera. And the capacity is very good. We can load up to 33.5 tonnes of salt in these containers. And Indian Railways, on our request, has given very special rates for the movement of salt in these containers. We expect good orders from various people for this particular container because we have only made this container till now. Another very beautiful container we have produced is a 40-feet -- 20-feet containers, but it is slightly wider than the normal ISO container and it has got openable roof. Hatches are there. We did trial with the wheat. Wheat is not a very heavy commodity, so we could load up to 33 tonnes of the wheat in these containers, while normal container can load only up to 26 to 27 tonnes. So there is increase of almost 27%, and railway charges remains the same. So there's a good saving as far as wheat is concerned. And this containers for so many commodities like silica sand, salt also we tried, stones, iron, pig iron, cotton seeds, rock phosphate. So there is an incremental varying from 20% to 26% of various commodities. And handling and loading is very, very fast because of the -- they can be loaded by opening the top roof of the containers, and then you can close the roof so it becomes watertight. So we have already supplied almost 400 such containers to various customers. So this is also part of our innovation during this period. Another innovation we did in recent times is a 40-feet super high cube container. So this container, basically, we optimized for transportation of cotton bales. In India, 3.5 crores of cotton bales are produced and transported from one location to another location, and Indian Railways doesn't have a very optimized solution for carrying these cotton bales. So we made a container which can carry 200 cotton bales, that is around 34 tonnes of cotton bales in 40-feet container. And this is the best possible system available, not only for railways, even for the road. And the beauty of this container is that it can carry 2 loads of cotton bales. Cotton bales are basically sold or purchased in one lot of 100 bales, so you can carry 2 loads. So this is how it can result into the substantial saving into the transportation of these bales. And this particular container can be used for light cargoes like ACs, freezers, et cetera, et cetera, to the optimum capacity. Next is the details of that triple deck 2-wheeler system. And this has been liked by the customers, and very soon we get the orders for these kind of containers also. Next is the wagon story. Basically, this wagon has now got many, many salient features. So this wagon have used the maximum available space on the Indian Railway system in terms of length, in terms of height. So we have reduced the space between the couplers, and instead of 40-feet containers, we are accommodating 42-feet containers on these wagons. The idea is that there are so many cargo in India which are of 40-feet length, they cannot be transported in the 40-feet container because the 40-feet cargo cannot be accommodated in 40-feet container, but they can be easily accommodated into the 42-feet container. So we can increase the commodity [Technical Difficulty], and then these wagons are the lightest in India. We are able to reduce the weight by 1.25 tonnes of each wagon. Secondly, there is a very -- we can basically make the provision -- made the provisions for even for the 10-feet containers tomorrow if somebody wants to send the parcel cargo using these trains, so they will be able to easily. And instead of 45, we have -- we are able to accommodate 49 wagons. So there is almost 8% to 10% increase in the capacity of the train. So when Mr. Lalu Yadav used to be minister, he used to say that unless you milk the cow fully, it will fall sick. So same goes with railways unless we milk -- load the railways fully, it is likely to fall sick. So we are trying that we should load the railways fully to the extent possible by various means. Secondly, I'm just noting the -- we call it the innovation of the millennium. We have removed the guard van, which is the last vehicle for every train, and it is to be -- it has to be [indiscernible] at every terminal to make the direction reverse. So to avoid that kind of uncomfort, we have small cart containers on each -- both sides of the train so that the shunting requirement is avoided. So basically, as we have been telling that these can -- these wagons can carry 42-feet containers on the chassis. So if you double stack 2 42-feet containers, so this wagon will be equivalent to volume-wise 5.4 TEUs per wagon, call it -- the unit of the containers is called TEUs [indiscernible], container is called 2 TEUs because that is double the volume. So if you calculate that way that this particular wagon can accommodate 5.4 TEUs, and railway will charge only for 3 TEUs, so 2.4 TEUs would be free for the trade. So the train capacity will be 264 TEUs against the 180 TEUs. So this has got potential to reduce the freight cost by 30% to 40%. And this enables closer destinations. And this thing -- and this is going to be game changer not only for the trade, but for the railways also. So in the end, the disclaimer is that the presentation prepared by Kalyani Cast-Tech is for information purpose only and does not constitute an offer, recommendation, or invitation to purchase or subscribe to any securities. It should not be relied upon for any contractual commitments. The company has based this presentation on information it deems reliable, but makes no warranty regarding its accuracy, completeness. This presentation may not include all relevant information, and any liability for omissions is expressly disclaimed. Forward-looking statements in this presentation about market opportunities and business prospects are not guarantees for future performance and involve risks and uncertainties. Actual results may differ materially. The company is not obliged to update any forward-looking information and is not responsible for third-party statements included in the presentation. Thank you and Jai Hind. Now we can switch over to Q&A session if somebody has got a question.

[Operator Instructions] The first question is from the line of [ Kalyan ] from [ Stock Stowing Limited.]

Thank you for organizing this investor interaction and sharing the updates on Kalyani Cast-Tech ongoing projects and expansion plans. Definitely it is encouraging to see the company is expanding its container manufacturing and logistics, everything. Sir, I have 2 questions. First question is regarding the guidance for this financial year, that is for FY '27. Right now in the presentation, it has mentioned that our order book is around INR 133 crores. Now the new facility is coming, Shivlakha at Kutch, then how much it will likely to contribute in this financial year? What kind of revenue growth we can expect in this financial year?

So we have said now that it will reach up to INR 170 crore.

So it is about order book, sir? So I am asking about the top line.

Yes.

Okay, sir. Then my second question, sir, regarding the government scheme and new projects. So right now government has announced the INR 10,000 crores container manufacturing scheme. So basic question is that Kalyani Cast-Tech is going to benefit from this, then when do we expect that?

In fact, let me tell you, basically I think we all have to have the patience, to keep the patience for that because these are all the government policies. It means the government will issue the guideline, detailed guidelines and all regarding this. Maybe it may take 2 months, 3 months, 4 months, and we are not aware about it. But unless those guidelines are available with us, I will not be able to give you the firm answer to your question. But nevertheless, whatever I have read into the newspaper or the material available, we will be one of the companies who will qualify from the day 1. We have increased our capacity. Present capacity is around 17,000 TEUs with us. We have to take this capacity to around 25,000. So made some more investment increasing the capacity at Shivlakha plant so that we can immediately be qualified as a brownfield company having the 25,000 TEUs capacity. So this is only the primary phase I am telling you, only reading from the -- that newspaper report and this thing. What details it will come, then only I will be able to make the firm comment on that. Am I clear?

Yes, sir. From my end, it is clear, sir.

The next question is from the line of [ Jayakumar ] from [ SATS Limited ].

I'm a great follower of you and thank you for solving many problems. Without the freight cost being down, reduced, the Indian manufacturing really will not take place for exports. Thank you for solving many problems, sir. Wonderful to see many initiatives what you are taking, sir. So 3 questions. One is in terms of the wagon manufacturing there are multiple wagon manufacturers. What will be our differentiated moat with respect to them, and why will we be able to compete with them, sir?

Okay. So should I answer this first, or you want to -- all the 3 once in a time?

Maybe one by one, if that's okay.

Should I answer to it?

Yes, sir. Yes, sir.

Yes. It's a very good question. Basically we have got 3, 4 USPs with regards to our wagon manufacturing proposal, you can say, or project, you can say. So as you have seen, you have listened to our presentation, we are not into the rat race of the normal wagon. We have designed our own wagon. And as per the new design policy which has been come out with our efforts from Ministry of Railways, whatever we -- the design approval will be timetable that within this period the design approval has to come, and these wagons can be manufactured in a factory which is not even audited by RDSO, if the wagon -- the design provider is confident of making the wagons at that particular location. As per the new design policy, we will be having a full control patent-wise on the design which has been submitted by us, which has been approved by Railways. So our focus will remain. But with the USP of these wagons, we expect there will be a lot of demand for this particular wagon. And we will keep on innovating other wagon type also so that we may not depend on the general purpose railway wagon. That is our idea. But in future, if we get the orders at our terms, at our -- we will definitely go for that.

Noted, sir. And when will the wagon manufacturing begin in our factory, sir? And also...

As I told you, we have the factories already ready. We have submitted our application to RDSO for the audit and certification. So now the ball is in their court. When they will come and inspect the factory, that is difficult to tell at this point of time to the festive season [Foreign Language] I don't think [Foreign Language].

Oh, understood, sir. Understood, sir. And second question is, in terms of the Kutch facility, is the focus of the facility is more in terms of the steel units and salt units which are around for a domestic transportation purpose, which can be even containers for trucks, or is it more for the port side of the business while the ports are 100 kilometers away?

So it's for everything. Basically, that area is full of cargo. I don't know whether you have searched that particular area of easterly. So the lot of -- if I stand in my house in the factory on the roof, the road going along our land is always full of trucks. And that pains me a lot. I would like that all -- most of these trucks should be converted into the rail, and these are the long-distance trucks. So there's a lot of cargo available in that area. But the thing is that we are going to facilitate even the export-import cargo to be kept custom cleared at this location. If somebody wants to take that as a domestic cargo, we will be providing them the special container so that they can load more per unit container and reduce their cost. Similarly that particular area is full of many minerals also. So -- and those minerals, they are basically going across the country, even up to Chennai. So that one container I have shown you, that open hatch, that is being used to transport that particular silica sand from our location or nearby location using those type of containers to various destinations in India, even up to Chennai. So it's export-import cargo, it's a domestic cargo, and as I explained you that our focus is on the unit cost of transportation, to load more per unit so that we can reduce the cost.

My last question is, recently you said that our objective or our forecast over the next 5, 6 years is to become INR 4,500 crore revenue. That's a great vision sir. If you have...

You have seen that policy which has come.

Yes.

If you are even making 25,000 TEUs at the rate of say around INR 200 to INR 2.5 lakhs, INR 700 crores, INR 800 crores easily come from that container manufacturing itself. And that is a very -- this possibility is very much present. No, I'm not ruling it, but basically this is a low-hanging fruit for us. But if you say tomorrow only it will start, it may not be possible.

Correct, sir. That is my actual question. Like, if FY '27 we are expecting around INR 150 crores to INR 200 crores only, so practically in FY '28 only we will start seeing the...

Basically '27, '28, I hope this ICD will become functional. This wagon factory will become operational, maybe 1 month here and there, 2 months here and there. And then with the new recent policies of railways also, you must have been following, I don't know. Railway is also making their policies container-friendly. They are allowing more and more to put into containers. So all this environment, if nothing bad happens or an unusual thing happens, so these are all the enablers for our ecosystem which is being developed at Shivlakha and Kutch.

The next question is from the line of [ Venkat Velupalli ], an individual investor.

I just would like to know, we are doing many things at a time. Do we have enough capital to support our growth? That is one question, sir. And second thing is, what could be the expected EBIT and PAT margins as we move with these executions?

Yes. It's a very relevant question. So till now [Technical Difficulty] we were able to do with our surpluses, and some part we have put as for more liquidity into the system. But now since the expansion we have to do very fast, and especially the ICD and the container expansion, we have from 10,000 to -- we have to go at least another 20,000, up to 20,000. So there will be going to be a good amount of CapEx required in these expansion plants. So we have got options. Either we go through that, bank is supporting us. We may raise some funds through preferential shares at some point of time.

Okay. With respect to margins, what margins we can expect?

Sorry, I forgot. So basically margins in the container activity will remain around 10% to 11% PAT I'm telling, not that big a PAT. And ICD operations and trade terminal operations and margin EBITDA, there we can discuss a bit, there will be around in the range of 25% to 30%. Top line may not be so great, but EBITDA will be good.

Wagons, sir. I mean, we are preparing...

Basically, if you see wagons, in the wagons around 60% to 70% is the bought-out items. So our value addition is not as great. So there, when we start manufacturing, we'll come back on that subject later on.

The next question is from the line of Yash Anand from Srujan Alpha Capital Advisors LLP.

Congratulations on bringing the innovation to the container manufacturing industry. And I'm very positive that this will contribute in the longer run to in the logistics of India. So my first question is, sir, [Foreign Language]?

[Foreign Language] INR 45 crore is from the government.

Okay. INR 45 crore is from the government, and the rest is from the private players out of this INR 133 crores?

Yes. Government will further increase because when we complete the orders, they -- generally there is provision of 30% extra this thing. So we are sure we will complete very soon and we will get that 30% also. So we get another INR 10, INR 15 from that.

Okay. All right, sir. All right. Sir, majorly going forward private [Foreign Language] configuration [Foreign Language] government [Foreign Language] demand [Foreign Language] because simple considering that [Foreign Language] innovations whether...

[Foreign Language] because they have to go through the tendering system. [Foreign Language] people don't understand what is to be done, what is the innovation is. And they generally quote abnormally low rates, and they don't -- then they don't supply also. Problem is they don't supply also. So, but good thing is that there are 2 government organizations mainly. One is that CWC, another is CONCOR. So CONCOR has developed a very good system of business associates. So business associates buy the containers. And the wagons are provided by CONCOR. So these are private entities and they generally give order to us. Like Western Carrier is one of them. They have given good orders for the -- that foldable container, we have already supplied them 50 containers. So that is -- it is coming from the business associates of Container Corporation.

Okay. Understood. So going forward, I am assuming that our demand from the private side would be greater than the government. Understood, sir.

Yes. Demand will be more and more. Even not only the container train operator, even third-party people are coming and joining. They take the containers and they use the wagons of anybody else depending upon the availability and the best rate, and then they do the logistics. So we are getting those kind of customers also for us.

Yes. Makes sense. Sir, makes sense. Sir, one question which is very, I guess, basic, but I want to understand from you because you can explain it much better. Sir, what is the demand/supply environment of this container industry?

You see, it's [Foreign Language], but we only assume that we'll start -- we'll keep getting the orders. That is how it is. God is great for us because nobody has got that study that what will be the demand, how will be the demand. And this particular sector keep on having a yo-yo kind of growth, sometimes very high, sometimes very low.

Yes. So the reason why I asked this question is that many international players such as Maersk and Alstom are looking to diversify from China. So they are targeting...

That's how this policy has come, this INR 10,000 crore policy yesterday approved by cabinet. So that is the -- the efforts are towards that direction only. And we are basically ideally located for having a very big factory. Even we have kept around 60 acres of land for particular -- for this purpose. If somebody joins with us with their assured off-take, we can definitely very fast we can make a big factory also. But nevertheless the minimum 25,000 TEUs capacity we have to create as per the policy to get the benefit of this as of now. And what will be the details, I'm not sure about it.

Okay. No way, sir. Just because, a company, Tata company, Alstom is also into the container manufacturing and also is introducing some bamboo set off base container -- bamboo-based containers. So I was...

[Foreign Language] Look, container is a very low tech item, baba, no big company will come as they are not sure of the margin. We are able to generate margin because our overheads are very less. We don't have customers which are having the [Foreign Language] actually, they cannot work here.

Yes. Understood. Understood. Understood. [Foreign Language]

[Foreign Language] facility is almost at the -- say 70% to 80%, but Shivlakha facility has got surplus this thing. So they are -- we are giving them the load and they are taking it up.

All right. All right, sir. And sir, just to understand one -- few questions more. Just to understand what is the average cost because you said [Foreign Language] just 50% from the order book. So [Foreign Language], sir, as compared to the normal...

[Foreign Language] let these give [Foreign Language]

All right. All right. No worries, sir. No worries. Just last question from my side. Just last question from my side. What is the asset turn that you are targeting going ahead?

What is the?

Asset turn, asset turnover on gross level?

Asset turnover?

Yes, sir. [Foreign Language]

[Foreign Language] this financial year we have given the guidance of around INR 170 crores.

The next question is from the line of [ Ashuraj ], an individual investor.

So just one question. Are you planning to start quarterly results as well so that we get the quarterly updates?

So we have not yet decided. We will go by the statutory requirement. When we come to the main Board, then we have to follow that.

The next question is from the line of Nihar Dave from AKD Securities Private Limited.

All my questions have been answered.

The next question is from the line of [ Paramjit Singh ], an individual investor.

I just want to check, I think most of the questions are answered. Just one question, are you getting some interest from your customer or some institutional investors to, I mean, for preferential shares or putting in some equity into the company? How is that looking like?

I didn't get you, Paramjit. Please, can you say again?

Sir, look, I mean, Kalyani Cast-Tech is a growing company with lots of potential, including this container manufacturing policy which has come in. And obviously you need funds, right, to expand and do more, be it in terms of ramping up your container capacity to 25,000 or manufacturing more wagons. And in the wagon slide you have written there's some MoU signed with somebody for manufacturing wagons. So I just want to check...

The MoU is signed with RDSO for the joint development of this design.

Okay. Okay. So I wanted to check, since the organization needs more fund infusion...

Yes. That's what I think I have answered in one of the questions. But we have got -- we are keeping our option open. We can go for that if we feel this is the right time to raise the funds from preferential sale, we can go for that. If somebody suggests rights issue -- either a right option, then we can go for that. So we are open with all the options.

Is any of your anchor or big customers showing interest in taking some equity in the company...

No, no, no. No, no. Nobody has shown interest and we may not be interested in those kind of type of...

Okay. Just, sir, I mean, this year we are projecting around INR 170 crore of revenue. How is your H1 roughly looking like?

You will get within [Technical Difficulty] Wait for some -- wait for some time. You will get the -- we have to publish the balance sheet half yearly.

Okay. Just one last thing, sir, your projection of -- you mentioned INR 4,000, INR 5,000 crore revenue over next 4 years. So that guidance, that vision still stays intact, right?

We have got this thing that once we reach to a capacity of, say, we have got the wagon manufacturing capacity of 2,400 per year. Even if you make 2,500 per year it will be more than INR 1,000 crore from that. And by that time, our container business also grew equally. Earlier we thought container may be a smaller entity, but it will be equally important and equally paying activity for us with the kind of railways' very enabling policies, Government of India support for the special containers and the export-import containers. So this will also become equally important and equally paying activity for us. And then we have got revenue from inland container depot, then we have got revenue from rail terminal. So all these activities will be there, and we have promised that within 7 to 8 years we will be touching that margin.

Okay, sir. And you mentioned that in wagons there is not much of a value addition, 60% of the components are being bought, so is it fair to assume that container manufacturing will yield obviously much better margin compared to manufacturing wagons...

Absolute margin wagon will result. But percentage-wise, if you talk then container will be more. And if you talk only [Technical Difficulty] then the terminals [Technical Difficulty].

The next question is from the line of [ Vivek Sareka ], an individual investor.

Yes. So see, we have heard your vision in next 4 to 5 years of reaching INR 2,000 crores to INR 4,000 crores of turnover. My simple question is, what are the risks which we see which could impact this vision? That's one. Second, you already gave a breakup of the kind of volumes and revenue which will be generated, but if you can give a color around what are the key pillars to this, the target turnover or revenue which we are targeting to achieve, in what category, and associated risk with that.

What are the risk factors you want to just ask? Vivek?

Yes, basically, yes.

Your question is regarding risk factor?

That's right, sir.