Standard Engineering Technology Limited ($SETL)

Ladies and gentlemen, good day, and welcome to the Standard Engineering Technology Limited Q4 FY '26 Earnings Conference Call. [Operator Instructions] I now hand the conference call over to Ms. [indiscernible] from Go India Advisors. Thank you, and over to you.

Thank you, Steve. Good evening, everyone, and welcome to Quarter 4 and FY '26 Earnings Call of Standard Engineering Technology Limited. We have on the call Mr. Nageswara Kandula, Managing Director; Mr. Ramakrishna Kandula, Executive Director; Mr. [indiscernible], Executive Director; Mr. [indiscernible] , Executive Director; and Mr. Anjaneyulu Pathuri, Chief Financial Officer. We must remind you that the discussion on today's call may include certain forward-looking statements and must be, therefore, viewed in the conjunction with the risks that the company faces. I will now request Mr. Nageswara sir to please take us through the financials and the business update subsequent to which we will open the floor for the question and answer. Thank you, and over to you, sir.

Operator?

The line for the management has been disconnected. [Technical Difficulty]

Good evening, everyone. Thank you for joining us today on the Q4 and full year '25/'26 Earning Call. I all welcome to all our shareholders, investors, analysts, bank partners, global partners and number of the STEL family. I want to begin by saying this clearly, this has been the best year in our company's history. The numbers will be at themselves. But I want to say is that the large scale of a cutout because this revenue, profitability, cash flows, working capital, execution quality, all of them improved together in the same year that does not happen by agent and I am deeply proud of what our team has built. Over the past 3 quarters, I have woken at length about our evaluation some glass lined equipment manufactured to a fully integrated precision engineering and [indiscernible] solution company. The transformation is now complete and execution, not that [indiscernible] remains a core strength and 1 of our most profitable verticals, but today standard in green technology lifted delivers complex multidisciplinary projects with the single point accountability from concept, process engineering and data design to fabrication, automation, installation, commissioning, water trial and the valuation where 2 companies globally after this step under 1 group for pharmaceutical, chemical, food and beverage and biotechnology industries. The [indiscernible] and standard P2s, announced and completed it during the year, and integration completely done have made this capability, real and operational brings [indiscernible] and instrumentation fully knows [indiscernible] strengthened our posing bioprocess and fermentation systems together, they make our integrated platform, 1 of the most complete in the. As I said at the outset, this was the strongest finance year in U.S. company history. And what makes particularly meaningful is that the improvement was broad revenues growth in our top growth along by revenues, not at the expense of investment. Operating cash flows in substantive and our working capital cycle tighten a discipline that is generally difficult to maintain wise cemented expanding operations at the pace we have. Taken together, -- these results reflect a business that is growing in a way. Total income [indiscernible] year-on-year growth. EBITDA, INR 138 crores, 52% year-on-year growth with an EBITDA margin 1.4% [indiscernible] profit before tax, PBT, INR 111 crores, up by 18.9% year-on-year growth. Profit after tax tax, INR 83 crores, 21% year-on-year growth with the PAT margin is 10.5%. EPS improved INR 4. Working capital debt has improved from 14 days to 150 days. Cash flows from operations are file to a first parties. Total income stood at INR 200 crores Q4 results. Total income grew INR 21 crores, reached up 25% goods 26% growth, 15.5% margin. Carpet deferred tax, INR 49 crores, reflecting 28.4% growth. [indiscernible] after tax INR 21 crores, 458% growth. PAT margins 91%. On margins, Q4 are some pressure EBITDA, primarily driven by commodity prices increases in key input raw materials, we are also making deliberate investments on manpower was the area we expect to be an even stronger year ahead. These are considered investments not hard to oral. We are actively working to after this pressure through operational leverage as our revenue volume growth tighter procurement discipline and ongoing efficiency improvement across manufacturing and the project in cut. The revenue case we are arming itself the more powerful lever for margins recover. A few technology milestones worth highlighting each of the approved by not aggressive pipeline item. Our talent to [indiscernible] our Japanese partner, BLS at now over 200 lots in the book with 100 already successfully delivered. This is commercial validation at the scale. Customers are actually choosing this or graphics and the all automators not because of price. But because of superior safety, reliability and life cycle performance, that is the meaningful shift in customer behavior -- and it tells us that the market is ready for what we are building. Our connectivity glass lining reactors are progressing well. Multiple units have already been manufactured supplies and validated into the field with the encouraging feedback from regulated pharma market, our international customers, IPP expressed strong interest on distributing this globally. We will share more on the farmer launch in the quarter ahead, but the early signals are very positive on our new strategic take integrated advanced manufacturing campus constructure is progressing on plan. This facility will open the door to oil and gas, nuclear engineering, food and beverages and heavy precision in it sector, we are not currently serving at scale actually decision into global partners and several of these areas are already underway. I want to highlight 2 government decisions that consider as much strategic as they are sectoral. And I want to do them the prone the business. The Board has approved we designate [indiscernible] and executive existing Non-Executive Director to Executive Director, subject to shareholders update [indiscernible] at the [indiscernible], this individual has been -- our board since period 2023 and has been deeply involved and the international business development, strategic collaboration and globally expansion, particularly in Japan and other overseas markets. In the enhanced executive roles, they will lead global operations and the marketing with a focus on made on depending on our technology partnerships and expanding our international has accelerated our global ambition. Having this level of dedicated executive focus on exactly what the pace of growth demand. The Board has also approved the appointment of [indiscernible], new Independent Director, subject to shareholders approval. This individual brings our [indiscernible] experience in precision engineering, industrial manufacturing and engineering technology with expertise in 3D plant modeling [indiscernible] schematics and advanced engineering analysis and analysis done depend board level. Both applied met us a signal of the kind of imitations we are building. One would be [indiscernible] governance are captured to match our long-term ambition. We entered the new financial year from a portion of genuine stent, our order book pipeline is healthy. Our execution capabilities are our execution capabilities are expanding, and our platform is now differentiated in ways that matter to customers or international business continues to grow, and we see meaningful Hydro had a global demand for integrated in generic solutions increase. The sectoral tailwinds remain firmly on our fever. India CDMO expansion supplied diversification globally, increasing our long-term sexes,and we are portioned and we set up [indiscernible] we are [indiscernible] and continued strong growth in the year ahead. The investments we are making today in people, in technology and infrastructure. Are we right once the scale are building the to to our shareholders and investors, this year results down too much to you as they do to us, your belief in this journey to even pace of our relation has been foundation and which everyone else has been [indiscernible] to our customers, employees, banking partners and a global partner are trusted partners to make this possible. We do not take either lightly. We [indiscernible] come along way and the most exciting part of this store. We still had and now I will hand over to Mr. [indiscernible], Executive Director, Global Operation and [indiscernible]

Thank [indiscernible]. Good evening, everyone. My name is [indiscernible]. I would be elected to Executive Director of SETL. So I have been closely looking at SCTL as a non-Executive Director for the last 2 years. And I am confidently I can confidently say that this company is building something very unique for the future. And in that 26 -- but what is more a -- we have started equipment -- now we are addiction capability. So we are cutting which is very unique and not I never the company globally. And this is what we're trying to achieve. So we have a -- I'm very excited about the future growth potential for -- so today, we are still evolving from a traditional equipment manufacturing company into a global integrated engineering and technology platform -- and really a few companies, as I said, I've never seen such a company in the world. So we are trying to become something unique, something new to the market and not only engineering, but advanced manufacturing and turnkey project execution automation, installation, commissioning order trial, validation and documentation. So we can do this all under 1 platform in the same company for pharmaceutical and chemical industry. So this integrated capability creates. So this integrated capability create a powerful long-term business model. And I believe -- I strongly believe that [indiscernible] is strategically positioned for the next phase of growth. So the company is expanding into new sectors, including oil and gas, nuclear engineering, food and beverage, advanced process industries and high-purity engineering systems and so on. SPTL is also building international partners, as [indiscernible] mentioned, technology collaboration with a company at Japan, which will strengthen its global positioning in the coming years. So I am a Japanese. So from a Japanese perspective, there are still some areas, the [indiscernible] needs to improve. But having this Japanese strength, the quality contracts conservative, keep the promise with the Indian good culture. This combination is Lerynot only the Indian customers can benefit from our collaboration, but we would like to tackle global market in the future. Of course, we will do it step by step. But Japan, plus India, now we can we can include in the same in the other global countries. We can do the same thing. And so I believe that the financial year '27 is another major growth for CTL. So the future road map, the global partnership, technology focus, expansion plans and integrated engineering platform gives me confidence about the long-term future of and I am extremely exciting. This is an extremely exciting time for me as well. And thank you for your trust and continued support. I'm looking forward to building this future journey together. Thank you.

[Operator Instructions] First question comes from the line of [indiscernible] with [indiscernible]

Sir, first question is on our gross margins. So our gross margins have declined from around 39% in Q3 to 32% in Q4. So what was the reason for that?

Thank you for questions. And I extend 2 things. One is the metal slightly metal prices are increasing, and the second thing is we invested our people coming years, we have very big order books coming, yes, we have high growth, and we are invested on people. We recruited many people or the coming years growth prospective. That is slightly impacted our profitability and the coming quarters, it's going to increase your profit.

So how should we see the EBITDA margins FY '27?

Sorry?

EBITDA margin for '27?

'27 is going to be improved.

Any sort of numbers, sir, that you'd like to push?

No, improvement This is further whatever we give results, this for the '27 is going to improve better than '26.

Okay. And what is the current order book position?

Our order book, approximately today, we have ran approximately INR 1,000 crores -- above 1,000 crores. We are not in a book, but order inflow in the pipeline are -- currently, we have INR 1,000 crores [indiscernible].

Yes. So how much out of that, how much will we export?

You are talking about the '26 or '27?

So, the INR 1,000 crores order book, what will be the proportion of exports?

Export [indiscernible] there that is almost domestically. Majority is domestic.

And how do you see, sir, the revenue because you have a good order book. So what sort of growth are you expecting for FY '27?

Compared to '26, we are going to do it better, '27.

So this 25% sort of growth can we maintain? Better than this year [indiscernible] Okay. And what was the CapEx number for FY '26 and what will be for FY '27?

FY '26, I think the [indiscernible]. And the coming '27, we are planning for 3 years -- coming 3 years, INR 130 crores, we are going. So there was last [indiscernible], I think we to there was 1 greenfield slates coming up initial construction is a much -- that product is 36, that policy started now. The project -- greenfield project transaction started. We are going to complete in this year. First, we are going to complete [indiscernible] dealing will go into come into operations.

Total CapEx investment [indiscernible] Firstly, this year, we are going to rate INR 65 crores. Next year, we are doing another [indiscernible] How much capacity are we adding? And what will be the revenue potential from this [indiscernible]?

Existing facilities also we are improving. Last call, I explained to you the same thing. And existing facilities, we now we are bringing a lot of promos and automatic solutions, automatic policy missions. And so if we can be another 20% revenue can handle. And that basically totally if you complete the almost specific can handle up to INR 200 crores revenue Total total existing facilities new businesses come in than our mandating capabilities almost INR 400 crores.

Could you just repeat [indiscernible]

Sorry?

Could you just repeat the number, what will be the total potential?

Total existing facilities, we are clearly existing facilities, we are moderate happening and robust and automatically everything we are adding 1 ever we had existing bus is going there, INR 2,300 crores capacity. And the 1 project is completed, that is another core production and for an INR 4 crores as for this year going [indiscernible]

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

Congratulations on good set of numbers. I think about 2 quarters back you have given that you would be having formerly revenue of INR 250 crores to INR 300 crores. Would it possible that can we expect that INR 250 crores to INR 300 crores of [indiscernible] revenue rented from FY '27 onwards?

Yes, possible. [indiscernible] we are going to -- and sir, what's your current utilization in the existing plant existing plants, almost 70%, 80% we are using. But once we market equipment, we are adding another 30%, we can create existing facilities capacity we can create.

Okay. And how much are we spending to modernize this further upgradation of the existing trend?

Another last year, we invested another INR 40 crores another 35 to 40 we are going to end. And sir, my second question is with respect to C2C engineering. How much revenue did we do in C2C engineering in FY '26. And what's the guidance? How are you planning to grow that [indiscernible] Actually, we are expecting -- this year, we basically -- and we are targeting the core is positive -- that is our capability. The integration filtration and scale up the business or -- so this year, this next year INR 60 crores because of our already we have TCR almost INR 4 crores, INR 47 crores at the moment and INR 50 crores Understood, sir. And sir, what about the organic acquisition you did in -- how has that band lock in FY '27. And what's the growth guidance for that in 1 side, I think INR 20 crores something something we did this year. because last quarter only that full total, I think this year also, we are going to tuck INR 60 crores. That is also in colo -- so if my understanding is right, sir, from C2C as well as the same tenant, you will be having an incremental INR 100 crores of sales. You're 100% increment yes, correct.

And sir, what about the margins in this B2C engineering and [indiscernible]? Are there similar margin to the it's overall margin or a better margin business?

Similar similar.

Okay. Similar margin. So I just have one doubt, sir, as you already mentioned that we are at 80% utilization and are utilizing further into can we expect the margins to improve from the current 14% margin to around 16%, 17% margin in FY '27?

Margin improved Definitely. Figure, I can't confirm, but March is going to improve and the revenue is going to be better than 26% improvement.

Okay. Just a follow-up on this. Can you just explain where will the margin improvement from like operating leverage or exports, et cetera, something like that? Actually, this year, we invested our people delever future growth point of view. And already our book is very strong and customer response also how we are going to margins improve, we are going to provide solutions. We are selling solutions. [indiscernible] product is base always comparisons always completion. But whenever we are going to commit to customer solutions, our margin improve also same we are going to implement and coming.

Next question comes from the line of [indiscernible]

Congratulations on a number -- that -- and -- so are -- that is not a [indiscernible] I just wanted to INR 1,000 crore order book sold -- is it driven by the renewable in India? Or are you also in market on the larger side?

I can't comment that contains -- we got from my clients. Okay. And what export plans export plants are good and to our pipeline, we are discussing clients and due to our comp discussion is slightly delayed. But compared to last year, this year our revenue double export revenue. So also specific where we are focusing on globe, equally Europe and U.S.

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

In Q3 con call, you have said that USD 3.5 million of transport is going to discuss in quarter -- but when we see on caution for number of our current 5.3% against the guidance we have given about 12% to 13%. So why the reason of this slippage, if you can explain.

Reason is some [indiscernible] a steady, but lies asking to this part of the that However, for integrating compared to FY '25 FY '26, our revenue export -- so same we are expecting in FY '27.

So that remaining USD 3.5 million order that we get. So like this venue will come in next quarter or it will delay further?

[indiscernible] are going to one, we are waiting for some customer clearances out. Okay. And my next question is like in previous phone call you have told like export and that solution and engineering has a premium margin compared to a stand-alone equipment -- as we can see like from FY '25 to FY '26, we have grown our export as well as engineering revenue has increased. But when we on margin, that margin has been down and that I told you on a that is impacted. And the second we have recruited many applies for features go. That are anoint slightly, margins are it is going to Margin is also going [indiscernible]

Okay. And on inventory side, our inventory has been lower when we compare from '25 to '26. Any reason on that?

Export is export and our projects, we are integrating the [indiscernible] metals, we need to procure and integrate and we will dispatch. It not only many things we need to then our integrated. And also, we are providing project solutions. So with a lot of inventory is required. This reduce the lead time and delivery time.

Okay. But when we see a presentation on Page #26, we can see like our inventory sales has not been or increase like it has been decreased. So you can tell like how you are calculating those inventory days?

So really [indiscernible] because we have been advancing the customers inventory. We reduced the advantage a customer well, and then we will inventory days.

The next question comes from the line of [indiscernible]

A couple of questions. First one, sir, you mentioned about this order book. Can you take us through that, if you can break up this order book into the revenue mix and you do that [indiscernible]The order book, we can break up in glass line versus heavy engineering and the other segment?

No, no, no. We don't have that. We can't disclose.

Okay. Okay. In terms of this order book, we are building these orders because of quality or fees or pricing?

We are working with our Japanese partner, at quality and unit less also. Whenever we are company -- our company is a complete unique company we are end-to-end solution provider. We are selling solutions. We are not independent equipment sellers.

Okay. So we did mention about the advance that is taken by the customers, that is backed by the customers. What percentage is that? If you can share that, how much advance do we take from the customers?

Generally, we will act up 20%, 30%. Sometimes customers is 10% based on customer discussed the case advance.

Sir, we see this development, which is happening with standard projects, you intend to enter intra and EPC. I know I understand that you are giving solutions, but then in terms of the design capability, fabrication and commission. So do you think we're going up the value chain, our margins could be different.

No, we are not with the concession company. We are not going to do any car [indiscernible] and procurement and construction. But we are a different unique companies. We build the unit. What is we are an equipment we are manufacturing and we are supplying execution water type designing and the concept to completion. And sometimes customers are asking -- we are -- generally, we will avert the civil path to clients. We can't do much. But clients are increasing, you can do this also. Then we don't want to do conventional construction. That is where we take a lot of time and man for involvement, sometimes today, you can see largely to 1 quarter, people are not available due to elections a lot of that we don't want to affect our business. Then we are planning to -- we have capability to free cash, we can build it through precast very quickly past building production blocks will complete within 6 months. that capabilities we have engine capabilities now. So we started 3 patrons. We do any greenfield projects coming day, any client wants, we can complete within 12 to 14 months. That is our capability. Now we made a full platform for the pharma and chemical companies.

So sir, despite this small shift, which is towards more towards the metal equipment that you might do, you are still hopeful that your margins will be in the range of maybe 17% or 20% kind of a risk.

The equipment point of view, always margins are very tight, but we are always -- we provide the complete solution to clients. the advantage we are getting made feature also, it is going to improve.

Okay. So we see this healthy growth, which is there. But when we look at the balance sheet, the balance sheet comes under a little bit of stress. Understand there is expansion which is taking place at your end

Can you elaborate on what [indiscernible]

Sir, in the inventories, CFO sir said, but in terms of the balance sheet, if you see the receivables, they are also increasing, which gives you a little bit of a shift in the ROCE also -- so that was the question that by when do you think that the cash conversion will become better from here on also.

'27, [indiscernible], this is when the cash conversion is going to be better compared to to this is a little bit better. already compared to 25, 26 lot of improvement is -- correct -- that is INR 5 crores operation post cash flow becoming action Working capital has also become a 180160 -- so next coming year, any of our working capital base, we required really 170 because our model is business model is like that. And cost point of we are improving and the margins point of view, we are improving. This year also slightly we recruited many higher-end employees, and we invested on manpower. So that is the reason slightly. This year, compared to 26 financial year 2, we are going to grow very -- so the manpower costs also we are going to cover coming years.

Are going to increase. with that have the growth that we have, do you think that in next 2 years or so that we will have good quality or free cash flow generation also.

The next question comes from the line of no from Square Capital.

Sir, what is the execution time line for our current order book?

I think this is almost 8 months, I think, 8 months, 9 months.

Okay, right. And sir, you are mentioning the PPD that we are expecting a same of around RUB 18 billion -- so start on export Am I wore Yes, because your -- some recent Somers -- now I can say, please ask me again question SP-16 Yes. SP1 So in the pet you have mentioned that our global tail would be INR 18 billion -- so any too anything in pipeline that we are assessing with the clients and that you feel like that will be converted to life.

Yes, the global TAM is there, TAM is available. India also INR 70,000 crores came -- and we are doing that in that is our scope is there. If we try Simari, thereon, we are expanding facilities and -- we are not only expanding our existing ports or and -- we are trying to at a new areas also that is mentioned in the presentation. And the global TAM is very big 1 company, I don't know an mantra company, 1 company, general basis company, 1 product they are producing, that port is the first almost a 1to1 billion. They are doing 5 million I think we are not doing about a year is very Understood, sir, but scope is there, but is there any discussion or any inquiries that we are getting or anything the inquiries we are getting a couple started supplying. That's the reason, 25 versus untax finance where our export growth is doubled, okay. also, we are expecting sales and positive response. But a big challenge to accept to Indian imports. Now we have added a Japanese technology, Japanese culture and now our global operations going to control Mr. as the further improvement is we we believe.

Understood. Okay. So and my second question was regarding the inventory, which is at INR 48 crores. So what is the aging of this next 10 months, this inventory is going to clear.

I think this is our pillar to that Inventory is quality inventory on I'm clear [indiscernible]

Okay. Understood. So it's less than 180 days. That's what we said, correct [indiscernible] and maintaining at a high level of inventory, is it like we are expecting good growth in the coming year? That's why you're maintaining at a higher loan and in Yes, yes. Next this year, compared to this year, next year is very high growth. Okay. Is it not because of this any supply chain understand that you are like feeling that could come due to the small and global so. Is there anything like that, sir? Yes. Some challenges already were facing -- because of today, metal cost is 1 cost is extra tomorrow -- that is what we are facing. Aliana, me and. So 1 other -- we are also doing the raw materials. So daily wire is very high metals, particularly metals.

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

Sir, I have 2 questions. First question is, sir, you had earlier spoken that -- we will be manufacturing [indiscernible] from the month of April. So has it come live? First question is this -- and sir, because currently, I think we are importing it from Japan right -- and sir, the second thing which I wanted to know is, sir, you have mentioned about the greenfield CapEx, which can generate INR 2,000 crores of revenue with INR 130 crores CapEx. So when does it come live, sir?

First question, you read that retains we have started areas company. partially, I expect that we are also part the Indian manufacturing caters sold into already 5 numbers. this year, last April in management are going to start in July for ago.

Tell me, sir. Can you come again, sir.

First question, my answer already, we manufacture in India April onwards, the numbers and we sold also. That is the customer fee waiting for customer feedback. And -- we are manufacturing needs. We are earlier also on my call, so clearly told 80% recruitment goes to manufacturing in Japan, 20% told we are [indiscernible] in India. That process we started APL, we completed 50 and [indiscernible]. And another 50 numbers in hard in hand, we are going to -- coming days, we are going to execute that also. But our set extender unit is completely coming to operation July 1 onwards. That is easier question. Secondly, greenfield project, we are -- coming 2 years, we are going to invite INR 130 crores. That capacity we are creating INR 2,000 crores production capacity capabilities we are creating.

Sir, when does it come live?

Coming 2 years. I told you 2 years [indiscernible] 50% will come into operation for April '27 onwards and the second April '28 [indiscernible]1 onwards. Second is, we are building the speciality 2 phases.

Okay, sir. So first phase comes live by April 2027, and the second phase comes live by April 2028, right?

Yes.

And sir, from July, how many number pieces -- how many number of pieces we are going to manufacture for glass line detect changes?

We are creating facility, we are creating 200 numbers based on capacity, we are creating capacity.

200?

Yes.

And sir, what kind of per month? And sir, what kind of revenue potential does it have, sir, incremental revenue?

We'll see customer response and order book than we are will be first to 1 year, 2 years, to be done, we will understand the growth and the requirements to customers. But the TAM is there. TAM total [indiscernible] market, INR 2000 crores. Globally, I 2 billion is available. We are only 1 manufacturer in India, this product TAM in India, sir, how much? INR 2,000 crores.

[Operator Instructions] Next question comes from the line [indiscernible] Investor.

I'd like to ask a question about the new subsidiary that has been floated. It says that you're getting into [indiscernible] buildings. Is this correct? precast building sir, the cost buildings. Is there any specific reason by you're venturing out into this industry?

No, not in the car. We are what we are doing, sir, our business is carnet projects. Sometimes the clients we are asking to do - we are not interested to do civil constructions, but sometimes some clients are asking to do complete. We don't want to tactical also. Then civil conventional, we are not interested. We are capable to precast. We can do pre-engineering for the building our pipeline to react how to travel, everything we can do engineering, that capability. Then we can easily precast we can produce. Blast will be complete within 6 months. Our project is still going to increase. If we enter this area, our project going to increase the speed execution speed. That is our intention.

Another question that I have is with regards to the inventory and also the order book I understand the inventory is INR 430 crores, and the order book is INR 1,000 crores. Yes. Is it correct that you're able to exhaust this order book within 8 months of the next financial year or it will take longer?

No, no, no, months, 8 to 9 months, 10 months maximum.

Okay. And what is the impact of the war in general to the business? Because we understand that the freight has become an issue. And also, steel costs, as you told, is also another issue.

Metal price is increasing. And price anyhow or export it always keep it in the customer group your furnace is dependent on gas or it's not. No, sir. We are not using any One more important point. Please understand in our glass ending business still active, our revenue is going to too much growth. So glass lining is not our business, we are still focusing glass lining and we are already -- we are -- become slowly #1 in the glass leaning area, but our other areas are very high. Other products are very high. [indiscernible].

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

Congratulations to Standard Engineering Technology Limited on their good set of numbers. My question is, in the presentation, you just mentioned the strategic priorities to enter into additional end industries like oil and gas and private and [indiscernible] are there any future plans to enter into the nuclear reactors or any kind of segment into aerospace and defense?

I'm sorry, sir, we couldn't hear you.

We mentioned in our presentation, let and also we are entering that reason, we are great project we have started the construction. Island gas and the nuclear, we are targeting. Okay. That's great, sir. And we'll be expecting by FY '28?

Yes, '28, yes.

The next question is a follow-up question. It's from the line of [indiscernible] from Choice Intentional Equities.

Again, I had a question on the order book. So just to get an idea on which segment will we expect to grow the fastest, I would like to get what the order book looks like for now. Our segments are growing, sir. So there was one like -- for example, our Solutions is moving faster, right, [indiscernible]

No, you is not audible.

Yes. So our Complete Solutions segment is now looking for lucrative. It's gaining a larger share in the revenue. So -- would that be the growth engine. So just to get an idea on what segments should we are [indiscernible]

All segments are growing equally.

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

I just had a follow-up question on the subsidy which we floated wherein we will be free will be doing cast buildings. I just want to understand why are we planning to get into this particular business, the precast business? Same question I answered 3 times in [indiscernible], the last 3 years, we are saying we are not interested to do any civil work. [indiscernible] scope we are leaving. But customers, sometimes they are doing everything you should do. So we are not interested construction business and Kantar blast, Vas, buildings -- but precast, we have capability. We cards, if you do customer also going to get benefit better of not require any covering walls, not recur any flag things or anything. So precast buildings we are offering clients. So what is the advantage? This project is going to compete within call to 14 months. Our speed is going to increase. Sometimes what happens is our instrument is ever thing is ready but the building is not ready. Building is not in our scope. So project is delayed, our dispatches are delayed. So customer is saying, wait billing-ready got a customer also losing money because of [indiscernible] product. But that gap we understand in the industry. Now we have started pre-cast buildings. So the project period is going to increase. and we is also going to be faster. The decided to enter precast buildings buildings for pharma and chemical companies. We are not going to outside. We are not going to do any domestic buildings. We are truly we are going to do in pharma and clinical production block [indiscernible] okay?

The next question comes from [indiscernible]

Sir, if you can just share that what are the key responsibilities which I assigned to [indiscernible] and going forward, how will we probably improve the strategy or the performance of the company or maybe the risk of financial integrity, if you can answer that. can please, please answer.

Okay. So I was assigned to meet the global operations and marketing. And of course, the strategy-wise, I have last 20 years, I'm leading AI group company. This is a 76-year-old company in Japan, more than 1,000 employees globally. And I have done many acquisitions in last, what, 10, 20 years. So having this experience and understanding the CTO, what we can do at the CTO and what is missing, I will share my experience with the management team and we will build a global strategy, how we can tackle other markets outside of India together with the existing management team. Did I answer your question?

What was sir, if you can just take us through that, are we looking at some acquisition or merger of that kind? Because you seem to be specializing in M&A?

Yes. But I -- of course, I cannot say yet now. But that is part of our growth strategy. But just acquiring company is just adding a number, and this is not what we should focus. So the organic growth, the combination of organic growth and the inorganic growth is necessary for our sustainable growth. we're not just looking at a 1- or 2-year growth, but we are looking at sustainable continuous growth. So yes, we -- the answer is yes, we be acquiring some companies in the future?

There are no further questions from the participants. I would now like to hand the conference over to the management for closing comments.

Thank you. Thank you for attending all. And the future is bright. And '27, we are going to do more growth and the profitability going to insist the quality of business will we increase and our product range, we are adding one [indiscernible] and we are adding new clients, new graphics and is 1 more exiting yes, we are expecting and we are parallel we are expanding our facilities. Thank you.

Thank you. On behalf of [indiscernible] Advisors, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.