MSTC Limited ($MSTCLTD)

Ladies and gentlemen, good day, and welcome to the MSTC Limited Q4 FY '26 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Deep Modi from Equirus Securities. Thank you and over to you, sir.

Good morning, everyone. On behalf of Equirus Securities, I welcome you all to Q4 FY '26 Earnings Conference call of MSTC Limited. From the management side, we have with us today Mr. Manobendra Ghoshal, Chairman and Managing Director; Mr. Subrata Sarkar, Director of Finance; and Mr. Ajay Kumar Rai, Company Secretary. We will begin the call with opening remarks from management, and then we will open the line for Q&A. I now hand over the call to Mr. Manobendra Ghoshal. Over to you, sir.

Thank you. Good morning, Deep. So good morning to all our stakeholders and a warm welcome to this morning to is the conference. So despite a visible amount of global macroeconomic uncertainty, it's my pleasure to be able to report that MCC has been able to end the year with [indiscernible] numbers. We have achieved a figure of INR 370 crores from revenue from operations, which is the highest since the last 4 years. Your company has been in the process of consolidation over the last few years -- and over this period, as identical and taken positive action as to which segments of business activity, we needed to grow out of and where we needed to increase our footprint and also to identify areas, which we believe are organically related to our potent and build upon. So as a part of this, we are now in the prime basis of exiting from the marketing and bidding business and coupled with the strategic disinvestment of SSM at the same of the last -- end of last fiscal -- we are moving forward to being primarily an e-commerce company following further into areas of creating electronic platforms. The 2 major such platforms that we're working on, the EPR PPP, which we have already [indiscernible] and with this part of our digital project plan, is travel portal, which is also in the final development stages and which we expect to launch [indiscernible]. Now apart from this, we are working on some further possibilities on [indiscernible] which we'll be able to update you as they come to a further set of production or completion. With respect to the financials, we have been able to maintain EBITDA percentage at a similar level here on despite competition and with the overall global macroeconomic uncertainty looming over the last 2 quarters and the challenges of scaling up, we are still managing to maintain an adverse level. Apart from this, there has been financial impact on account of statutory obligations, about which our Director Finance will touch upon later. What I emphasize is that the suction not withstanding. Your company has been able to increase [indiscernible] levels year-on-year by about 23%, taking out the contribution of 1 exceptional item of FY '26 that is the speed of strategic businesses. Now on the business outlook front, the ATP for Pratt has been developed and tested with all at integrations also increased -- the portal is ready and now a formal approval and once for operating. As I have said earlier during other conferences, once the platform is operational, it would open the door for further quantities is similarly onboarded or BR set trading on the total itself and also a part an opportunity for us to build for developing and operating both such metals and exchange platforms in the future. This would open up the rest of an entirely new business vertical for the company. On the same lines, we've been looking at what we think is a very promising opportunity of creating a seamless, mainly B2B total travel and holistic covering the value chain of travel accommodation and associated services. This part is also in the final stages of testing, and we expect to operationalize it partly in the space to the and then extend segmental reach as we be fraction. We've made this offering as [indiscernible] front. Apart from this, we are working on some other areas, just in to end transaction advisory for asset value realization for PSUs, government departments and private [indiscernible]. For this, we are [indiscernible] to mutually work for providing such end-to-end solutions, leveraging each other's promine expertise. Our business development teams are also looking on other major possibilities which leverage our dream expertise and supplement the solar technology, including possibilities of AI where feasible at accounts. In the context our 50-50 joint venture with Mahindra [indiscernible]. I'd like to inform you that the efforts put in by the management to streamline operations and optimize flow in terms of rationing have delivered [indiscernible]. The financials for the 3 quarters have been consistent and encouraging. Even though the net loss has been progressively reducing sequentially, we are still monitoring the operational financial perimeters very closely. But we're hopeful that the positive trend will continue. Now coming to some highlights of 56, 10 coal mine blocks over 10 major mental blocks significantly higher staff, including piping as well all linkage auctions. The order [indiscernible] from 1 India to competitive as well as militates install iron ore, pellet clients, grow more and small. All of these have driven our higher e-commerce roaming for FY '26. Now, I'll request our Director Subrata Sarkar to brief us on the financial numbers for '25, '26.

Very good morning to all of our esteemed investors who have [indiscernible] on this company the time has been listed to the stock exchnge. So as our explain that is a very nice year and positive year for MSTC. So the [indiscernible] performance during '25, '26 company has [indiscernible] billion in terms of gross in time held that was congested to our. . Some of the highlights of financial performance is that revenue from operations was at least at INR 259 crores, which is highest in the last year. EBITDA [indiscernible] year-to-year basis. [indiscernible] competition. [indiscernible] as compared to INR [indiscernible]. Reduction in impairment loss in investment in [indiscernible]. So how there are the business highlights. Business highlights like as already experience, it has completed the coal mine open and legal block of -- and impeachere we want the revenue is that the option of the [indiscernible], which has [indiscernible]. And we are developed [indiscernible] allocations of GoGun other foot -- and it, we have not an order in pool reductions for volumes to open. -- usual sales but also contributor iron ore per line and work from our code. And that explains, will be future basic will add to our current revenue and propane is the EPR senator and MSTC as also partners VIP for advisory all including the old action arises various plans. And we are also detecting new digital products that will travel and [indiscernible]. This quota [indiscernible] that we are not [indiscernible] 110% that was more secure, but still boost has so much approach to our e-commerce domain. So we have decided to let and while first quarter of this year, it will be out of our business at already out, but income will be out of our business market. So now this has moved stand-alone financials -- so total revenue is [indiscernible] compared to INR [indiscernible] comparising of marketing on price woodied is 32 group and other 1.8%,as just increased from [indiscernible] compared to power. So for a increases are concerned, in from our detailed financial there is not much which is the employee expenses and it was this. But we are starting to increase in the overhead because this year, we have opened a raft there are things were there. And there is -- because of an we are within protocol and business that can translate it to back to revenue near future. We are focused on that. And depreciation almost depending the same. And intent appreciable decreased from 1.4 crores. This year, there is some exceptional income ForEx sintered -- with that and approved will be [indiscernible] as compared to 2.9. So before retinal items, EBIT as it includes some for that is an increase of 22%. And in the segmental part, already sell. So we have got breakup, that is the auction is other income of Poli and marketing almost just bidding out of 1.29. So this is the position for segmental reporting is concerned. And so -- but in the rear -- the mean that we want to highlight last year to the share of amount of 5.8%. -- as used to provide revenue. I would like to tell the investor that is the portion, has reduced significantly both quarters. We have almost maintained the loss figure of 9 months of fiscal year [indiscernible]. That is a effort deny the management, we contain the losses. So with that, we like profit standing 18 and at some INR [indiscernible] and EPS stands at 103 some to 57.3% last year. Now coming to the detailed statement of the stand-alone business, where that was explained that employees has not increased much delayed by 12 months, whereas other overhead has shown an increase, but we will have to happen for the year now [indiscernible] accordingly to see that appreciate the revenue one. So that's that we do much figure of PBT before exceptional items to 6 that we will close out progress. With that, I hand over the call for the Q&A.

[Operator Instructions] The first question is from the line of Vedant, an individual investor.

Sir, I'm talking about the consolidated numbers and e-commerce in position. So from the past couple of years, the e-commerce revenue has more or less been flat I mean, in 2023, it was INR 350 crores. And from there for a couple of years, it has been around INR 350 crores only. So it is only for this quarter that we have grown significantly. So do we see this growth in the e-commerce continuing in the coming year FY '27 -- and how -- I mean, what percentage we are looking in the growth in FY '27 commercial side.

Right. First of all, e-commerce, you are right we have been on a flat for some time -- of course, the growth, as you pointed out, has been in this year. Now -- we have always been looking at e-commerce in terms of incremental book because it is not something which will lead to a very high growth, which is one of the reasons why we have been trying to consolidate and also look for areas that we can organically grow and develop in other verticals. So as part of ecommerce, here on, we shall definitely be looking at growth -- it will not be there to put a number to it, but the attempt shall be to maintain a double-digit growth if possible.

Okay. Okay. Sir, secondly, the other revenue streams which you are streamlining have been working on the past couple of years, so there is this stream EPR trading platform, where electronic trading platform for EPS plus. So PR grading platform plus other avenues which we are planning to develop -- do we see the revenues from these teams coming in the FY '27 onwards? And if you can be precise how much -- or more or less what amount of revenue shall be tie generate in totality?

Yes, as I said, it will not be appropriate good number at let us for the platform to get operationalized. And you said it's completely ready, it's integrated, it's waiting for to go ahead to operational. And over the first 5 wall, we should be able to then be able to assess what would be the revenue be from these platforms. But as we are very positive about the fact is contribute significantly to our revenue. We see to start with the -- go ahead.

Okay. Okay. So if I may, how significant is the electronic trading platform, the of 30 bps trading in India is, I mean, this is very new for me. I have led you about it. It's why leading about it. But is it significant the advantage would mean something to our top line [indiscernible].

Obviously, this will renew in the form of the fees on the taste, which will add to our top line as well as the bottom line. So that was explaining. So this we still were being really site government initiative -- so we are -- we are very much hopeful that we have a nice impact on our other revenue that.

Now there has been a complete thrust on transparency and fair price discovery in all kinds of sectors. So building something that basically able back in -- so this is something that will -- is busily going to grow.

Okay. Okay. One last question, sir. Actually, when I see the segmented revenues and the results in consolidated. So there is this third stream ablate started to track your company and -- my question might sound live, but I still nevertheless will carry on. So there's this third head for others unallocated there have been losses in this 3 from the past couple of years and the losses have been significant. What is our plan of actions to mitigate these losses or probably get done with them? How do we go about it? And what are these actually?

Yes. It is basically it is not a lot of national cotas. Though we had our segments with diversement right now as far as housing standards stipulated is trading and us. But the is our expenses and overall are not national of the expenses that over not that line to each of the particular segment because of this does all the notoriety and that -- so that's why the analysis execution is where there is no revenue, but they are fully expenses. That's why it is a loss. And at ultimately totally how the [indiscernible]. So this accounting will also come to and its accounting standard for me because we are going to -- we have already guided down our readiness and the revenue stream is also to an end with the first quarter this year. So there will be only [indiscernible]. So where the ton will be proper and we have corrected. This type of year sets allocation will be probably rarely allocated to the usual segment and then ran segment profit [indiscernible] profit and loss whatever it is.

Okay. Sir, if I'm understanding you correctly. So right now, whatever the losses are, will certainly reduce in the coming future as the accounting standard set in line. .

Yes. just to sort to infer few -- these are typically not some obvious fact analyst as an expenditure that can .

Not the particular segment. So when that losing segment that is coming up, so very type of analysis we will run it here, and we can have that single segment profit and loss that.

[Operator Instructions] As there are no further questions from the participants. I now hand the conference over to the management for the.

Thank you. So as we sum up, would really love to experience native to my team as well as all stakeholders. We are now going through a difficult time, as I said, globally, macroeconomically, a lot of [indiscernible] loops. But despite that, the numbers have shown a very set growth as this year. And -- we are working on a lot of new areas, which we hope that over the coming fiscal and will certainly be a good strong group or consolidation of area and organic growth, leverage areas that we have changed. So once again, we do keep asking that helps us to improve -- thank you. .

Sir, there are 2 people join in the queue. Would you like to take them? Okay, the next question is from the line of Harish, and individual investor.

Sir. So I just wanted some clarity on the APR trading, right? Could you give us the number, what was the total amount of PR traded last year -- so that would give us an idea of the market because the number. Yes, yes. Because the numbers floating around -- I mean I was doing some research and the numbers are taking way too high. So I just wanted some understanding.

So Harsh, that is basically why the moment, I think, and a transparent e-trading platform to be put in place because whatever the numbers are not related or compiled any particular place. So an accurate sim of what are actually the number is not possible at this -- but once this platform gets adorable over a 6 months or 8 months. It should be possible for everyone to know and for the distribution to be done clearly available in the public domain as to what are actual numbers and what would be of course, the values would get lower. .

Okay. And our revenue. Okay. So significant -- are we talking in INR 100 crores of the total market [indiscernible].

That's a very leading question, as -- so which is -- I think we should be have a look at what does it happen to the important or the month -- and no question is then automate that answer then. .

Okay. And would our revenue be a function of the total transaction value? Or would it be even .

No, it will be just on the period. You have some smart kind of see on the transaction. So that part of the top line and government that will be our [indiscernible].

The next question is from the line of Saket Jain, an individual Investor.

I just want to know, as per the Vahan portal, the scrappage for the year was around INR 2 lakh volumes -- and if -- and the opportunity, which was highlighted in the Natpara published in January '26, they were appreciating that it will be around INR 1 crore volume for the year. So it's almost only 2% of the total rate potential. So can you brief how we are able to tap that market? And what are the roadblocks? And is that we'll be able to remove the road block by the ALB policy, which is already in place? .

Right? Saket, I think you need to be clear about that MSP is a small part of the major ecosystem of [indiscernible] in India. Major stakeholders in this case happened in the states who have or who have to put in place certain regulation, regulatory angora well as facilities -- to be able to tap the market of EMV for ethical and controlled scrapping. Now that is something which is an evolving landscape. It is happening at stake. But obviously, it has happened a bit lower than what was originally visualized. Now as far as gain that is is in across -- no domestic reporters is the one which is mandated for auctioning those end of vehicles -- and those are then taken up on purchase by RBS. Could that go forward with the process scrap it. So as far as the rising and fleet of vehicles is concerned, this would be dependent on the policy framework and the incentives that are tied to place bar government in various and so on. based on guidelines has been issued by -- and once those are available to the [indiscernible] people, the flow of vehicles through the portal would increase. So we would develop as a part of the overall pie system development and would not really be able to be the primary driver.

Because just a follow-up on that, are we seeing a traction because in the last year, in '24, '25. It was only 70,000 vehicles, which was swapped over the years and the current year is almost more than 2 lacks. So are we seeing a traction [indiscernible].

Yes. So 1 of the factors which is driving is basically we are policy coming into place for manufacturers -- so a bit of that traction which is happening for the increase is being driven by an OES and we expect that to be substantially increase, which would help to basically formalize scrapping, which is happening mainly to the way after all vehicles.

Fair enough. Just 1 more question to ask if the time permits. I'm just reading 1 of the article news articles where SBI kept is the transaction is the financial adviser for the Polarcold base auctions? Gold mining, the 30, 30 telling them -- so will MSTC will be also being a participant to that or.

We have working with the Ministry of Mines as well as with capital such opportunities. And at the [indiscernible] will be notified by the Ministry.

The next question is from the line of Harish, an individual Investor.

Yes. So I have some follow-up questions. So we're hearing about the new coal exchange coming up. So will it -- how will that impact our coal auction revenues?

So this is something that's very, very initial stages, and we shall be watching this development early to see how they impact our revenue streams going up. Coal does form a significant part of our revenues. So this is something that we will be obviously watching closely and also taking appropriate decisions to try to be a part of the ecosystem as -- it is on a very usual state. And obviously, the evolution what happens with all the seatholders taken into -- so.

But essentially, we will be competing for the same volume, right, in the spot market?

So we see nobody -- at this point of time, certain amounts how the entire ecosystem is going to evolve, stakeholder consists are all -- so once that comes into the really and there actually actual things are going to happen. There are a lot of mines in delivered on that article then can come to not when and where we pay back up. So as of now, will be very difficult to assess how we can [indiscernible].

And so if I look at the business, the organic business minus the PR vertical, which will come up from this year. How do you look 2, 3 years ahead, how do you look at the organic business growing?

So as I said earlier, this would -- this is an in where we're looking at flat at roll growth over the last time. And our temps will definitely be for a Wigton the way forward. It will run very, very high growth. It will be incremental growth and we see aiming at double-digit on the way.

So double-digit growth on the and like the organic business? Or does it include the new verticals taking [indiscernible].

-- we are talking about organic business. That is obviously the e-commerce business. And putting a number to it, of course, will be speculative, so I would not like to do that.

Okay. So essentially double-digit growth for the current business, then whatever new business we win will be on top of that?

Yes. That is what would be a [indiscernible].

[Operator Instructions] The next question is from the line of Urish Kotari, [indiscernible].

Sir, my question is on the EPI quarter and the portal that we are developing for travel, which we are competing with Baali right. So what is the current state of the -- sorry, I joined late, so you might have covered this question. But what is the expected time line to go live for the travel portal right now? I think [indiscernible] is clocking around INR 250 crores of revenue yearly. And what we are targeting and what are plans to penetrate this market?

So obviously, offering is what we should -- we are looking at to be able to make a significant dent in this market. Our portal and can is in our final excuses of testing, and we should be able to launch it for the B2B segment and in some time. As far as revenue is concerned, that is something which we would not like to speculate [indiscernible] but we are definitely -- we see it as a good business opportunity, which is the reason that we have decided to develop.

Okay. So sir, we are planning to live this in at 1 or quarter 2.

We are already in quarter 1. And as I said, we are in the bases of sting,we will running it out as quickly as possible nature.

And sir, for taper we planning quarter 1 or quarter 2 Bull?

That is -- as far as the patent is concerned, it is it is indicated and we are waiting for a go-ahead on it would be [indiscernible].

Yes, yes, I can see that they are showing EPR trading will be shortly started. So I just wanted to confirmation from you on live quarter like.

I'm not in a position to give that confirmation because it is not everything is [indiscernible].

[Operator Instructions] As there are no further questions from the participants, I now hand call to the management for the closing comments.

Thank you -- and I really appreciate the question because this is basically make a question and look for what we are doing right and what we're doing wrong. So please keep that [indiscernible] and we hope to do better for you and your company in the coming quarters and in the coming years. Thank you very much.

Thank you.

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

Thank you. Good day.