Mishra Dhatu Nigam Limited ($MIDHANI)

Ladies and gentlemen, good day, and welcome to MIDHANI Limited Q4 FY '26 Earnings Conference Call. 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 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. Vikash Singh from ICICI Securities. Thank you, and over to you, sir.

Thank you, Steve. Good morning, everyone. A very warm welcome to MIDHANI Q4 FY '26 results con call. We would like to thank the MIDHANI management to give us the opportunity to host them. From the management side, we have with us Mr. Dr. S.V.S. Narayana Murty, Chairman and Managing Director; Mrs. Madhubala Kalluri, Director of Finance; and Mr. Padavittan Babu, Director Production and Marketing. Without taking any much time, I'll hand over to Chairman, sir, for his opening comments. Over to you, sir.

Thank you. Thank you. Good morning, everyone. It's a great pleasure to have this investor call -- conference call. As you know, Mishra Dhatu Nigam Limited is mini ratna Defense public sector undertaking. And in the quarter FY '25, '26, we have achieved the highest ever quarterly turnover of INR 552.7 crores, registering a growth of 34.63% against the turnover of INR 410.56 crores recorded in the corresponding quarter in the previous year. And our value of production during fourth quarter '25, '26 to date INR 392.19 crores, registering a growth of 19.15% against value of production of INR 329.19 crores recorded in the corresponding quarter in the previous year. Our PBT during fourth quarter stood at INR 107 crores, with a growth of 38.67% against PBT of INR 77.16 crores in the previous quarter. PAT in the fourth quarter stood at INR 77.75 crores, with a growth of 30.49% against PAT of INR 56.14 crores recorded in the previous quarter of this year. The company achieved the highest ever turnover of INR 1,208.63 crores, registering a growth of 12.52% against the turn over of INR 1,074.1 crores during the previous financial year, '24, '25. So the figures are pretty good. And the order book position of the company as on 1st April 2026 is INR 2,290 crores, and our PAT for FY '25, '26 was INR 130.79 crores with a growth of 18.82% against INR 110.07 crores recorded in the previous financial year '24, '25. So the figures are there. But I just want to take my time in highlighting major achievements. So apart from the highest turnover in the history of MIDHANI at INR 1207 crores. We have highest ever titanium production. So we have produced 700 tonnes of titanium, almost doubling from previous years. And another important point for MIDHANI is we have signed an MOU, memorandum of understanding with the major stakeholders for the creation of a metal bank. As all of you know, there are certain supply chain disruptions for procurement of raw materials. So anticipating certain turbulences. So we have established this -- initiated establishment of this metal bank for uninterrupted supply of critical raw materials for all defense projects. And another important thing is for the presidential [indiscernible], we have supplied 90 tonnes of armor grade steel. The 1 that Honorable President has used in the 26th Jan this year, it was delivered by us in a very short time. And on the aero sector, we have received a [indiscernible] certificate for 10 critical aerospace grade, super alloys and steel from CEMILAC, Centre for Military Airworthiness and Certification. Others in production of advanced aero engines. So this is a very, very major thing because obtaining this certificate allows us to go ahead with the production. And many of you may be knowing that we have delivered 31 beautiful architectural titanium windows to Shri Ram Janmabhumi at Ram Mandir at Ayodhya. This is the first time in India, a company has given titanium for architectural purpose. Many other countries are using this kind of advanced -- I mean, titanium for architectural purposes. But in India, this is the first time. So this is a great achievement for us. We have supplied about more than 700 ring role rings of Superalloys and titanium alloys for aero engines. And Again, for the first time we have developed a cast superalloys single crystal blade material. All of you may be knowing that the highest level of competitiveness in Metallurgy is ability to produce the single crystal blade material. These are extreme complex metallurgy with very, very tight compositional tolerances and gas content and it has to meet the rigor of the temperatures that a typical aero engines normally encounters. So it's a matter of great pride that we are able -- our material for the first time has passed all the tests by our customers. Another very, very satisfying thing for MIDHANI is we have obtained at NAT Cap certification for heat treatment. This is one of the highest level of certification in the aerospace sector and the defense sector. Because directly, OEMs can procure material from the manufacturers using this certification through this certification. So this is one more feather in our cap. And recently, we have inaugurated 1 of the world-class facility for aerospace partner manufacturing facility worth about INR 40 crores which is capable of manufacturing the so-called bolt for the -- all the aero sector and defense sectors. These are basically super alloy partner's manufacturing and titanium alloy manufacturing and special steels that are used in very, very critical performance-critical applications. So these are some of the very, very high-end achievements that MIDHANI has made in the year FY '25, '26. And we are very happy with these few introductory words, I think probably we'll spend time on taking questions from our friends. Thank you so much.

[Operator Instructions] The first question comes from the line of Sucrit Patil with Eyesight Fintrade.

I have 2 questions, first question for Mr. Murty is, looking ahead to 2027 financial year, whatever strategic pathways are you planning to position MIDHANI as a global leader in aerospace and defense alloys, accelerate breakthroughs in super alloys and composites and future proof against supply chain shocks and evolving defense procurement models. Just want to understand a view on this. That's my first question. I'll ask my second question after this.

Yes. Regarding supply chain, I've already informed you that we have in the near short term, we are establishing a metal bank. Basically, India is not bestowed with the best of raw materials required for super alloy production. Okay? We don't have the nickel, Cobalt, molly, tungsten, [indiscernible], which normally go into manufacture of any of the super alloys, regular grade super alloys. So we don't have the -- geographically, we are not bestowed with that kind of minerals to manufacture. And it is a long-term process. So we need to have -- we need to insulate ourselves from the supply chain disruption. So in the short term, we are establishing a metal bank for 6 of these critical raw materials. So that is how we are trying to overcome the recent whatever disruptions have been there. Regarding your first question, that -- first part of your question, how we are positioning ourselves, yes, MIDHANI has the capability because we are masters in metallurgy. So we are looking at the niche markets of aerospace and defense for manufacture of these very, very complex cell lives. So that is how we position ourselves. We are the suppliers of these materials and we also expect some good overseas sales.

My second question to Mr. -- sorry, the second question, Mrs. Kalluri is I just want to understand, over the next 2 years, what type of forward-looking capital frameworks are you planning for [indiscernible] and simultaneously fund advance, alloy R&D while maintaining dividend discipline? And will you buffer against ForEx swings and volatility in the long-term different cycle contracts.

Good morning. We're planning CapEx of around INR 1,000 crores in the coming 3 years.

Ma'am, I'm sorry to interrupt. Your voice is not clear.

Yes. Yes, the CapEx we are planning around INR 1,000 crores in the coming 3 years, projects are in the stage of development, and we are putting DPS. Most likely by end of this financial year, we will remain at further clarity and CapEx projects. And we are preferring to operate through to [indiscernible] CapEx. And the balance items, we are managing through working capital requirements regularly. We are not foreseeing any much major issues in paint.

The next question comes from the line of Rushabh with RBS Investment.

Congratulations on a good set of numbers, sir. Sir, firstly, sir, I think previous con calls, you have been mentioning that ultimately, we want to grow the company to around INR 2,000 crores top line and I think in last quarter, you mentioned that this quarter will be sharing some ambitious plans that we have. So anything that you would like to share on this?

Yes. One is, as we told, 1 of the questions that I think probably we had in the last Q3 con call, as we were not able to really -- I mean, there was some deficiency in converting into sales. So that question that we can now say that whatever we have made, not only that we have had the highest turnover, we could convert everything into sale. That is 1 point. Second thing is CapEx, okay? So wherever there's no our Director of Finance, also, as mentioned, we are at a very advanced stage of DPR where we want to put money in our capital equipment. And that probably in a month or 2, we'll be able to get approval from Board. So that is what is the major thing. So we are going to replace some of our aging equipment with state-of-the-art facilities in the downstream operations. So that is what we can share at this point in time. .

Sir, whatever incremental CapEx that you are planning, you mentioned INR 1,000 crores CapEx and also now I think you're doing some debottlenecking. Is this towards high-value products only? Or what is the kind of new products that you're targeting with this CapEx?

No, the CapEx is basically intended for 2 major equipment on the downstream operations. So these are not specific to anything because the process goes like melt after melting it goes to downstream like forging and bar rolling or it is wire drawing all these things. So these are -- basically, for majority of the products, these equipments are used, not specific for any single product.

Okay. Okay. And sir, secondly, sir, you mentioned that about this -- you double the production of titanium from last year. So what is the trajectory going forward, can you increase further production? And how does it impact our margins?

Yes. We have the capacity for tightening production, we have -- I mean, we have installed a new [indiscernible] furnace and the sufficient capacity is there. As I told last year, we had almost 700 tons of titanium. We are having capacity to produce much more than that. So currently, we have about more than INR 660 crores worth of titanium orders. So -- and we are likely to get more. So we are fully geared up a good amount of titanium production.

And sir mentioned about this INR 2,000 crore revenue target, would that be possible from existing CapEx only -- whatever you are doing so far? .

No, we can do. It is not the question of -- I mean also we can do -- at INR 2,000 crores, okay, we probably -- we would have told in maybe another 3 years kind of thing. But the idea is to improve our efficiency. The CapEx is some of the equipments, whatever we are having there installed somewhere around 80, 85 time. So the efficiency of the latest equipment with the Industry 4.0 and all the digitalization, we want to replace it manually operated once with the automated machines. So it will improve the efficiency and the yield of the product. So idea is that once we install, our productivity will improve. So that is the basic idea even with the existing thing also we can do.

Okay. And sir, mentioned that the recent certification for treatment -- so how does this change the things for us? Can we get some new customer orders? Or how does this stage develop?

Yes, that is the thing. Certainly, looking normally, once the plant is Nadcap certified, that means that end user can directly -- I mean, OEMs can directly procure materials from the manufacturers. This is the certification. So definitely, we are looking forward for many aero and defense customers who can procure directly with these certificates. It will help us.

Okay. And just the last question. I think the last 1 year, we have mentioned that we are also talking with the engine majors. I mean, they think they were already in a facility. So what is the status on that, and when can we start commercial supplies to them?

Yes. Because this auditing of the facilities is a little long-term drawn process. We need to supply material. They come multiple times okay, then they'll see our facilities, suggest some improvement, then again, they will visit. So we are expecting, okay, it is -- recently also, we had some visits. So we are maybe in -- towards the end of '26, '27, we should be able to expect something. .

The next question comes from the line of Arya Shah with [indiscernible].

I just wondered, sir, now can we expect a 20% revenue top line growth and 23% EBITDA margins from this year?

Okay. One thing is we had this year, maybe 12%, we have expected the top line growth, 12% to 15%, we should be able to maintain. Our target will be 20%. But it all depends on the supply chain constraints of raw materials. Now you have some issues related to LPG energy. So once these things are stabilized and we are assured of the raw materials and the energy, it should be possible.

And the margins on the margin front, 23% or around 20%?

Slightly up by 23% to 25%, we can expect when the revenue goes up by 20%, obviously, the margins will increase, maybe around we can expect 23% to 25% EBITDA.

Okay. And also about the powder facility are the orders coming? Or what is the...

Yes. Regarding powder manufacturing facility, we had some issues with getting licensed. But now I think we should be in a position because recently, we had some reasonably positive news. So maybe by next quarter, we'll be able to get little clarity on that, okay? So it is yet to come. I mean the facility is not at install. Purchase order was put long back, but there were clearance issue because this is a little deal equipment. So we'll be able to give better clarity in the next con call. .

Okay. And what kind of order book we should expect in the next coming -- this year, basically, end of this year?

Yes. So currently, our open order book is INR 2,249 crores, maybe INR 2,250 crores. So our expectation will be we are in discussion with different parties. So maybe we will be able to book about INR 1,500 crores worth of orders in this financial year. FY '26, '27. .

Okay. And my last question is on the export, what kind of order book can we expect this year?

This year, INR 25, 26, we have done INR 85 crores, and we are expecting at least INR 100 crores we'll be doing in this financial year.

The next question comes from the line of Aditya Deorah with [indiscernible] Investments.

Sir, how much would be the product business as a part of our full year turnover?

Full year turnover fee. We are expecting -- our target is at least 15%, 15% growth, we are -- that is what is our target, okay? So based on this, you can see how much we are targeting.

Sir, I would like to rephrase the question maybe. Sir, like we mentioned about the new products that we have started like maybe a titanium alloy dish head for naval application or the titanium and Superalloy rings for air engine. So if we consider this as the product business, so how much would this be as a portion of our full turnover, the entire turnover that we do, how much would be these businesses?

No, separately, you are asking individually?

Yes. individually as a whole, the product business.

It all depends on the orders that the customers are placing on us. Like, for example, now we have executed 1 order. Like for example, I told you the blade blanks, okay, the blade -- input for superalloy blades. So the customer has to give. So we -- but I mean, I cannot say that we can execute dispatch order it all depends on how they place order unless.

Presently, the existing order, whatever we are having and the anticipated order whatever we are going to book, apart from all these things, there is an element of the raw material availability. Of course, partners all those -- we have to see that every month and which can be able to make, accordingly the decision will be made exactly whatever today, even if we decide, I don't think it is going to happen. So the means while going, it will be changing. So that is the reason, as of now, we will not be able to tell exactly which product or which sector will be -- we are exactly going to attempt. So as and when it is going based on the availability, the decision will be taken, we'll do it.

Okay. And sir, the segment-wise order booking for the order book that we have in terms of defense, aerospace, energy and others. Can you give the segment-wise for the turnover as well for the last financial year?

So we are already given in that presentation. Yes, we are having...

The line to the management has been disconnected. Please hold on. [Technical Difficulty] Ladies and gentlemen, the line for the management has been reconnected. Yes, sir, please continue.

Okay. The question was on the order. Yes, for different sectors. The defense is about 79% of the total order book.

I'm asking about I'm asking about the turnover. The order book is already given in the presentation. If you can provide it for the turnover for the revenue that we have titrated, that would be helpful.

Yes. So the turnover, the 450 security space is about INR 93 crores. CMC is about INR 301 crores from defense. PSUs are 63 public sector enterprises. Energy is about INR 2 crores and other far INR 129 crores. Exports are INR 78 crores.

The next question comes from the line of [indiscernible].

Congrats on a good set of numbers. I just wanted to know, can we get the alloy wise gross margins because it is very differentiated because it has very different economics. So I want to titanium super alloys, Maraging steel and USS?

That is margins for each of the allied.

Yes, yes, sir.

Normally, we don't provide such data it is a little confidential. I'm sorry.

Okay. And 1 last question. At what revenue scale will it be begin actually exponentially leveraging from operating margins -- operating leverage, sorry.

Can you repeat it, please?

At what revenue scale can we benefit from the operating leverage.

See, basically, we -- in general, like time and managing steel have retailed higher margin compared to superalloys. So if we can increase those sales and all if we can get such orders, then probably the margins will improve. That is a mix we can talk about. It all depends on the order books and plant available emission resources availability and other factors.

The next question comes from the line of Shashi Ranjan with Anandan Capital.

Congratulations to the entire team and the store director as well for getting the Nadcap acuity. My first question is with the Nadcap in hand, where do we stand in a field of like investment casting to precision machining ecosystem and where we aspire to be in future in the next 1 year?

Yes. MIDHANI produces investment casting of both titanium and superalloys, Okay? The Nadcap certification is currently for heat treatment okay? We are also having idea to go for NET and -- Nadcap certification in NDD. So currently, our investment cash business is about INR 10 crores. Okay. So we are expecting orders after this. So we should be able to increase our business in that area.

Any acquisition that you're planning and field of maybe precision machining and casting -- precision components.

There are many outsourcing agencies in and around Hyderabad. So actually, acquisition may not be required because these pression manufacturers, many new companies have come up who work on, I mean, order basis. So we are not having any idea of acquisition of any company.

So among those players, anyone who is the largest who is helping -- who's the largest supplier for MIDHANI among those players in Hyderabad you said, right?

Yes, there are very many -- I mean, there are companies who are doing extremely good for even satellite applications, launch vehicle applications. They're supplying engine parts, which are very complex. There are many reputed companies around this area. So machining of the parts per se is not a big top task. Making the material is where rejections are possible. And during machining of the material rejections are normally will not be there. It will be almost 0 because the machines are so precision precise. So you don't expect any rejection and many 5-axis CNC missions and all are there plenty in number around us. So that issue doesn't arise.

May I squeeze in 1 last question. As for the data, global OEMs have tripling tripled India sourcing compared to what it was in 2019 to reach $1.5 billion. Where do we stand here at MIDHANI and where we aspire to grow when it comes to OEM sourcing from India.

Yes. Yes, global OEM, whatever the increase is there, the procurement in the country. Before that, whatever period you now you mentioned MIDHANI also was not doing much of export -- so last 3, 4 years, you see we have gone a long way. So already the -- whatever OEM audit and the product are it and the customer means the company audit is -- I mean in the advanced stage we expect in the coming years, the export also will go in higher.

I firmly believe that under your ages, MIDHANI will catch up with the metal powder and further precision technology because your expertise is highly valued, and thank you so much for the lighting on MIDHANI.

[Operator Instructions] The next question comes from the line of Raj [indiscernible] with Jupiter Financial.

Congratulations on outstanding number. My question is with Meta Bank and other things in place. How will the next 2 years be shaping in terms of top line and bottom line? If you give some color on that?

Yes. Metal bank is in -- maybe we are expecting within another 4 months, we'll be able to establish because now some civil works and all are going on. So for material to receive 1 all it will take another 3, 4 months' time. barring that one, that is the status of Metal Bank. The bottom line, we are expecting around 15% increase in the top line year-on-year and corresponding increase in the bottom line to maybe around 20%.

Net margins will be maintained and increase in the top line. Is that correct assumption?

Yes. Top line growth is expected. 15% is our target.

The net profit margin would be maintained with the top line growth?

It will be around 24% to 25% EBITDA margins we can expect bottom line. .

Okay. And sir, any update on the old inventory, which was there which should be supposed to discard it and we...

No, we are working on that. You might have seen there is no much increase actually. We are able to restrict it, and we'll be working on this year also to bring down and there will not be any increase in coming years.

Would you like to give some number to that, sir?

Anything we mentioned here from inventory out there?

We are explaining at least 10 now, I mean, from the opening revenue opening inventories maybe around 10% to 15% reduction also. So that the liquidation can be possible. That is what we are expecting. That is our target for this month, both WAP as well as scrap.

The next question comes from the line of Rushabh with RBS Investment.

If I take a slightly long-term view of Lignite next 5 to 7 years, because given the top launch capabilities that we have only thing what we are working is the raw material availability, that's also thing is solved. So if MIDHANI, if it wants to achieve INR 5,000 crores top line, what additional certifications would be required or what additional things that we -- it could be done. .

Okay. If you look at a very long-term growth of 5 to 7 years, 1 is the availability of raw material that is -- we are indirectly taking care with Metal Bank. We are also into this CapEx plan about INR 1,000 crores worth profit through establishment of downstream profiting facilities. If we look at the exit data, about INR 8,000 crores worth of materials of titanium alloys, superalloys and steels are getting imported into the country. That means there are people who are importing materials, which are very well within the catalog of MIDHANI. There MIDHANI capability exists within the country. So definitely, there is a good scope. If you are able to get those orders where people are able -- I mean people are importing, this thing is quite possible, reaching the higher revenue at a rate of 15% to 20% growth year-on-year is not far from reality.

Okay. Understood. And sir, currently, we're not facing any challenges, right, supply chain production is going on full in currency?

No, that is what. I mean some energy issues are there because of these Mid-East crisis and at the European crisis, we are having some issues. But still, we are trying to identify alternate vendors we are trying to establish and we are trying to overcome. Okay. That may lead to little delays in orders. But overall, we are trying to manage, and that is how we managed the last year. So now we are in a better position. So with Metal bank support from government on LPG, we'll be able to craft that is what is our expectation.

Okay. In terms of the MIDHANI's product basket offering. Is there any major right space that is still pending to cater to the major customers? So we are now at least we product wise are done with [indiscernible] . We have all the major products in hand that we have to offer. .

Yes. No, we are having -- we are not anticipating many problems, except for these energy and raw materials. I think we have capability was there is no issue at all. We are 100% confident of executing all the orders.

Next question comes from the line of Arya Shah with Whitestone PMS.

Any update on ABD bilateral jacket or any order book .

Expected this year?

Yes. So MIDHANI is having 2 types of technologies. One is Bhabha that is taken from Bhabha Atomic Research center [indiscernible]. And another is having -- we have -- last year, we have taken ABHED technology from DRDO, okay? DRDO in association with IIT Delhi have developed this technology. So we have acquired the TOT from IIT Delhi and we are currently in the process of manufacturing these targets and supplying to our customers, okay, so that people -- these are 1 of the lightest targets for this range of that category. So we are anticipating good orders for ABHED, okay? So soon, we should be able to book some good orders.

So currently, what kind of order book do we have? -- as you are supplying to the customers already?

We have given to octopus 1 order is there for with Octopus. So that is what we have executed. And we are, yes.

What was the worth?

It was about INR 1 crore.

The next question comes from the line of Anik Mitra with Seiko Solutions.

Sir, my question is the critical materials like what are the sources of those critical materials? And what sort of agreement do you have with the sources in terms of time and in terms of supply -- continuation of supply.

Yes, that is -- you mean critical raw materials.

Yes, sir. Yes, absolutely.

See critical grammatical see, the business is very high sophisticated superalloys and titanium alloys and high-strength steels. The raw materials that need to be used for manufacture of these high-end products are all high purity materials, high-purity raw materials, that is nickel, bald, molybdenum, tungsten, chromium, vanadium [indiscernible]. Okay. So these alloys are not available in the country. India is not having capability for producing any of these materials. So we are depending on imports for these materials. So now we import them from various countries, okay? Majority of them either former USSR countries, East European countries, European countries, sometimes from U.S.A. So these come from multiple. I mean, there are more than 20 materials which we imported. So they come from multiple countries and that is how the supply chain runs.

Sure. In terms of cities like 1 of the largest country, like Kazakhstan have hardware somewhere, the [indiscernible] contribution. So who are the top countries?

Yes. Probably in Europe, Europe supplies maximum, maximum by volume -- by value, Europe supplies maximum.

Okay. And sir, what is the [indiscernible]?

What is the kind of Kazakhstan?

I'm asking about the country called Kazakhstan. These type of countries are very.

So that we import sometimes from Kazakhstan, okay? We import titanium sponge from them. So yes.

[Operator Instructions] The next question comes from the line of [indiscernible] Doshi Green Lantern Capital.

From the call, what I understand is in terms of demand, I think the visibility is very strong. In terms of manufacturing capacity, also, I think we have enough an adequate capacity, except for you are going for automation and new machines, which will bring the value addition as well as the margin expansion. So the constraint historically, we have always been on the raw material side and which -- under your leadership, I think you are taking care of that. So with the metal bank coming, like what you plan to have these material store for how many years? Or what's exactly the internal planning you have?

Yes. Idea is it is a perpetual bank, okay? And there will be material. -- whenever there is a crisis, it will be taken and we'll be replenishing as soon as it is available, okay? So when we are -- when we want to execute an order, we should not have at least the supply chain, if it is disrupting, Metal bank will be used. That is the idea. But this bank will be there forever.

So sir, with your experience over the last few years was -- I mean, we had a volatility in supply or actually, we had disruptions in supply, except post-Iran war, but what was the experience you had over the last few years?

Some of the raw materials, for example, I mean, there are raw materials which we could not procure because of some tangents, okay? From where we are procuring they were barred, okay? There are occasions where the spike in the prices. There are occasions where the material was ready, but it could not be shipped because of the ongoing crisis. It could not be transported. So there are multiple ways in which the supply chains are getting disrupted. So the whole idea is emerged from our ministry because of the supply chain disruptions, we should have our own method by which we can overcome this. So this is the idea behind it.

Yes. So once we set up this metal Bank, in terms of the price volatility, how we will be protected because typically, we have defense orders which are long-term orders, but no price variation clause. Or are we now moving towards the variability clause?

Okay, metric is mean maintain the customers only. In case of emergency, we will draw material from those metal banks. So on our contracts only, there is no price variation that is being taken care while coating itself.

Yes. But in the past, if I remember 2 years ago, we had a long-term defense order, and I think the alloy prices have gone up substantially, the raw material prices. And that is why it was in fact...

Sometimes we have to face the challenges. Otherwise, our prices are picture prices only. And while in case of long-term contracts, we are doing pricing in such a way to take care of these uncertainties.

The next question comes from the line of Arya Shah with Whitestone PMS.

So could you talk about the screens now, which we are going to supply to Vande Bharat? Are we already filling that tender what is the approval or are you on the approval?

Yes. So now what we have done is we have -- yes, we have engaged expert subcontractor who will be operating our spring plant and shortly, maybe already we have initiated the work in a month or 2, we should be able to make this spring plant fully operational. And we are also in discussion with people for orders.

Okay. So we don't have any orders for the plans currently?

Yes. Currently, we are not having, but we are expecting.

Okay. What kind of order you expect in INR 100 crores, INR 200 crores this year?

No, I do not know. Maybe probably during next con call I'll be able to give a better picture, but we are now trying to get good orders, yes. That is -- now we are in discussions.

The next question comes from Nilesh Doshi with Green Lantern Capital.

Sir, you mentioned about the capital expenditure for a fastener plant. So can you just elaborate like when this plant would be ready and what kind of revenue we get out of that INR 40 crore CapEx?

Yes. This -- 1 of the important things in the manufacture of any system, be it in missile, rocket, satellite or even chip is fasteners and these fasteners are not normal fasteners like what you use. These are special aerospace grade fasteners, meeting certain quality requirements and side a national requirements. So MIDHANI, we have invested anticipating extreme demand and very limited number of people are there to manufacture this kind of partners. So we have established a INR 40 crore facility are catering basically to missile sector and space sector. So both places, the requirement is huge. So already currently, we are having already orders in the pipeline, which are getting executed. And we expect at least INR 20 crores to INR 30 crores per year order book from this sector alone.

So the plant is already ready?

Yes, yes, it is inaugurated already. It is ready. It is working. And 1 more point I want to tell you compared to our competitors, a distinct advantage for Milanese are raw material manufacturers. -- partner manufacturers are importing wire and they are trying to make, whereas we can make our own wire. So there are grades in missiles, which are normally from other countries now that technology. So those grades are all imported it's not readily available within the country. So we'll have the ability to make those grades and make partners from those grades. So -- that is the advantage over others. So again, anticipating this thing, this particular fastener plant has been established.

So on a long-term basis, like how large this revenue can become, let's say, over the next 3 years to 5 years?

Yes, every year, that is what -- every year, we expect it to be at least INR 25 crores.

INR 25 crore growth rate or INR 25 crores would be a stable revenue?

No, no. Maybe every year, this is a kind of stable revenue at least.

Okay. But definitely, I would expect with a very high margin.

You are not wrong definitely. It's a value-added product for us.

The next question comes from the line of Biraj [indiscernible] with Jupiter Financial.

Origin, -- so my question is MRU targets for next year and the year after? .

MOU targets are to be fixed. Actually, it is under discussion at Ministry. So probably that final edition has not yet been received. So in due course of time, we'll get maybe another -- I mean it will take time, yes.

The next question comes from the line of Vikash Singh with ICICI Securities.

Sir, just 1 question. The next big program in the Aerospace segment in India could [indiscernible]. Just wanted to understand our standing in terms of capital or readiness wise -- and do we think that we would be able to take a good chunk of order book on there as well?

Certainly, that is what is our anticipation and orders we are expecting. We are already in people are approaching us. We are already doing some developmental work for AMCA program, okay? So the work has been initiated. MIDHANI is currently executing some of the alive, both Superalloys as well as titanium. We are once the development is complete and it is meeting, I mean production orders, we will certainly expect.

Thank you. Ladies and gentlemen, that was the last question for today. I now hand the conference over to the management for closing comments. .

So thank you. I mean, we had a wonderful meeting with all of our friends. I think a total of 16 questions were asked, and it is a pleasure to give reply. Maybe 1 or 2 questions, we could not give particularly those with respect to margins, gross margins and individual materials, probably that I could not answer probably to the satisfaction. But barring that one, I think we have given, and we look forward to your continued support. Thank you so much for this opportunity.

Thank you, sir. On behalf of ICICI Securities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.