Voltamp Energy SAOG (VOES) Earnings Call Transcript & Summary

My name is Mohammed Ajmal Basha. I'm the CEO for Voltamp Energy. Along with me, my team is there: Mr. Abdullah Omar, who is the General Manager of Corporate Affairs; Mr. Yousuf Balushi, who is the General Manager for Voltamp Technology; Mr. Amin Shohoumi, who is General Manager, Shared Service; Arul, who is the Head of IT; Manoj is the Head of Business Development; Al Busaidi, Head of Administration; [indiscernible] Legal; and [indiscernible] with Security. So we are having our Investor Relations meeting for the first half of 2025. These are the main key indicators what we have. Sales for 2025 first half is OMR 36.90 million. This is 128% higher than what we had last year. When compared to raw material cost, raw material cost is OMR 20.66 million, which amounts to almost 56%, which shows a good reduction in terms of how we have been doing. Gross profit has been phenomenal 35.65%, which is OMR 13.16 million. This again is a growth of almost 147%. Profit after tax is OMR 6.8 million, which is 18.43% and again here also there is growth of 228%. Though last year had been a phenomenal year for Voltamp, this half itself, we achieved a goal of OMR 3.8 million. Order book, we've made an order booking of OMR 36.17 million during this first half. Average operating working capital is 115 days, which is slightly higher primarily because there is a complete stage jump in terms of what we have been doing previously. This is in terms of order booking. The order booking for the year has been OMR 36.92 million -- sorry, OMR 36.16 million -- sorry, the sales for 2025 has been OMR 36.923 million. You can see the last 6 years' performance. The same half of 2025 has been OMR 16.17 million, previously it has been OMR 12.922 million. So this is something which is much higher than what has been previously there historically. And as compared to last year, it's been almost double. If you see what is the sales distribution. The sales distribution in 2025 has been 35% domestic and 65% export as compared to historically, it used to be 40%-60%; 40% used to be export and 60% used to be domestic. Now we are going towards the direction where export is higher than domestic. What are the key drivers of change? Increase the sales of power transformer. This is one major criteria. This power transformer sales has increased tremendously. Increased demand globally. There is an increase in demand, which is driving this requirement. Export market has been a key driver for us. We have been doing a lot of a new export market and that export market has made this sales possible. When it comes to order booking. Order booking is OMR 36.16 million. This is -- again, if you see the order booking distribution for '25 to '24, we are almost similar, though 2024 was a good export order booking even 2025 has been good order booking for export. We are still doing 63% of export order booking, 37% of domestic order booking, though OMR 36.16 million is quite higher compared to previous all the years, while it is slightly lower than last year. Last year, we had big orders coming from domestic market, specifically at the end time. Someone has financed the orders, so that made the sales figures quite high -- order bookings were quite high last year. So if we see orders, there are 3 drivers of change, enhanced new market. In UAE, we were able to get a good market and that UAE market has shown great increase in our order booking. They have been delaying financial domestic large orders, which are there. The moment that comes, that will be having a big change. Based on our financial order last year, while that's not same case this year. How is the raw material cost? Raw material cost plays a key impact in the gross margins, profit and all. So we've been very focused into how to manage the raw material cost. You can see, the raw material cost has been floating around 80%, 78% like this and we were trying to work hard. And in 2023, we were able to get 64%. 2024, it came down to 54%, and now we are at 56%. It's a mix of multiples and charges, much better off in terms of raw material cost management. What are the key drivers for this change? There is a continued desired improvement. We have a process where we're going design improvement, design evaluation, design studies and all, which we sort of impact in terms of how efficiently we design our product. For ongoing supply base, we have a mixed supply base. We have supply base globally spread out. So we are not dependent on only one single or one base of supplier, which are there. We have multiple supplier base. That's something which helps us in taking decisions rightly. There are certain logistic challenges which are there. There are strategic orders towards better margins and entry order is also there. These are mix of various types of orders. We have orders where we are -- getting strategically to enter the market. Those are also there. Focused on evaluation and pricing cost. This is something which we do very meticulously for quite some years. This actually impacts our raw material costs. When you take the order, we do a very detailed evaluation of what is the cost, what is the pricing, what is the market and all. Then when it comes to order execution, we do the same thing on every order, every product delivery as for one which is key to this raw material cost management. Based on order types, there are raw material costs, again, it depends on what is the type of mix you have, how much of sales, how of much of service, what is the region, it is domestic or export. What are the ratings, bigger or smaller. Multiple things has a chain into what type of raw material costs you have. Key components from [indiscernible] are there. Because the power transformer demand globally is very high, the complete supply chain is not aligned in that manner, but there are certain key products in power transformer, which I'll explain when we come to what are the difficulties. And those are one of the recent grids. It also impacts the cost, time and all. So these are the key drivers which are responsible for having whatever RMC we have today. In terms of other cost, other cost you can see, it has increased from last year 2024 to 2025. But if you see in terms of percentage of cost, direct cost for 2024 was 13% of sales, while 2025 is 8% of sales. And this is primarily because of increased sales, better management, better control and increased efficiency. Though the increase in value -- when you see increase in value, this is compared to last year. Though the percentage of sales is low, the increase in value per sales is primarily because of higher labor cost because the number of volume what we produce is quite larger. So the number of engagement of labor is quite high, but it is still much better than last year. Credit cost is high because the exports are high. So we have large credit cost. Credit cost is also a major factor of our exports. That's the reason the credit cost is higher and that is also impacting the actual value in terms of price. When you see sales and administration costs, again, cost of sales and administration finance cost is 16% sales in 2024 as compared to 13%. They also reduced drastically again based on what type of control we have in terms of sales and other items. But in terms of the real value, the value has increased considerably. This value primarily has increased because we are doing export orders. So the moment you do export orders, there are multiple things which goes with the export orders in terms of sales, marketing and handling costs. So these are all part of sales and administration costs as well as credit cost, where we need to look at total guarantees, warrantees and all. So that's the reason this cost has in terms of value that's increased, but in terms of cost of sales, it has reduced from last year. How was gross profit? If you see gross profit over the years, we have been consistently working with a positive gross profit. By 2023, we were able to have OMR 2.6 million, went to OMR 5.3 million, now we are at OMR 13.1 million. That's 247% higher than what we did last year. Even last year has been a phenomenal year. Despite of that, we were able to have a better year till in H1, we even doubled our gross volumes here. Same is a reflection of a PAT. We have been -- the PAT has been OMR 111,000, which was a turnaround for 2022 to 2023. Then 2024, we were OMR 2 million for PAT, then we went to OMR 6.8 million in 2025, which is again 328% higher than what we did last year. Again, last year has been a phenomenal year. This year has been much better as compared to that comparison. EBITDA again is a reflection of the same gross margin, PAT and EBITDA. EBITDA, we have been -- positive EBITDA. This is also almost 3x, 275% of what we did last year. OMR 3.1 million was there in 2024, now it is OMR 8.17 million. What are the key contributors and challenges what we have in terms of 2025, going forward and all? What are the positive contributors? Energy transition is one of the major factors for increasing the demand, and this is a big positive. The energy transition started in various countries. Where you see energy transition, it's primarily wherein your generation of electricity shifts from conventional energy to renewable energy. Renewable energy, solar power or hydropower, that type of energy, plus there is energy transition were because of this renewable energies and all, for grid stability, there are a lot of others. When this all takes place, there is a lot of demand in terms of new subscription. When new subscription comes, you have demand for power transformer primarily at this point of time. Then it goes to distribution transformer -- and distribution transformer. This is one which is driving the demand globally. It's not limited to Oman or GCC. It is globally. This is having a big demand chain. Market dynamics continue to ask for high demand. As we see the energy transition, which is asking for a higher demand, there are limited manufacturers for technological products like [indiscernible] and all the stuff. And when they have received with the markets like European markets and all, then certainly, this part of the region, which is dependent locally, which is -- which used to be dependent on European and far Eastern countries have started looking at us also, and we are able to fulfill their requirement. This is the market which is asking us for higher demand as compared to previous. Large purchases are there in GCC, which are also almost every country is working on renewal project. We have been very aggressive to these projects from beginning. We have been doing renewable energy projects for Oman or for UAE for quite some time, but we have been able to contribute towards projects. Voltamp strategy is yielding solid results because we had a strategy of new market, new products. This is using strong results in terms of our product delivery on our markets and thus journey is continuing. We are on a regular basis to see that we have new products as well as entered new market. Quality and reliability of Voltamp product is continuing to have somewhat progress. We have almost every of our large transformers and power transformers what we supplied have never ever come back. All these services are doing well. First time pass. So this is something which is agreeable in terms of reliability for the customer. Though these are large assets, customer don't want this to have any issue, so we are able to fulfill those requirement. But this is one of the reason where customers trust us. Commodity prices are showing vulnerability, but still it is reasonably stable despite of all the political and other conditions, which are surrounding the region as well as the globe, in general. We are finding commodity price going up and down in terms of copper, in terms of oil and steel and all. But despite of that, we are able to manage it, but this impact is also not so large. This impact is still manageable based on our strategy, where we do copper hedging. We -- Voltamp has decided to go for a copper hedging policy. We have a very significant copper hedging policy. The moment the order comes in, we just hedge it irrespective of whatever estimations are there, we don't go into assumptions in all. We just book the hedging. We secure the copper. We avoid any [indiscernible]. But these are also helping us in ensuring that the pricing, what we planned during order taking, we ensured while order execution. Market has been taken greatly due to increased market price. But if see, generally what used to happen was you have limited markets. Oman market is there. Oman market is also cyclic market. You have orders comes in at one period of time, then the order execution happens, then again order comes. So there's a cycle period which is there. So now since we have multiple markets in our hand, we are able to manage those ups and down the cyclic reasons with other markets, like when Oman was not giving us order, Oman has given a good amount of orders in 2024 in the first half. And this year, they've still not decided. Inshallah, it will come it will come in the second half, but we were able to manage our order booking through UAE, through Saudi Arabia and all. But those are the markets, which are actually helping us in managing our requirements. There is hermetically standing and advance purchases are there. Advance purchase is something which is also key reasons for us to ensure that we were able to deliver customer on time. And very advanced planning we do in terms of what we need to get. Like today, we are working on '26-'27 planning, that's how we see it. Enhanced employee base, we have -- the team is very spread out. People are with different level of experience. We are able to work together as a team work. It's also contributed towards what we are able to achieve. What are the negative contributors? Supply chain is still at risk. This is increasing the cost. This is changing drastically, like we have faced problems like dispatching the material and suddenly shipper comes back to us and say that we cannot go through Red Sea, we need to go through Cape of Good Hope where the material is picked up and then he says that he cannot bring it. Those types of issues are still there. We come across those types of issues. We try to see that it impacts our production flow, it impacts our utilization, but we have our own mitigation plan, which but are in there, but this is something which has hailed in the current scenario. Key veteran, normally items specifically old [indiscernible], bushing, et cetera, which are technology products, which are from the approved list of customer. This is not available local -- locally it is not available, available even in GCC region. These are generally coming from Germany, Italy and Spain. These components are a high-technology product. These are not localized. Currently, this is having a long lead delivery time. Some of the components comes even 18 to 24 months, but that's a long lead time, which is there. So what we are doing is we are trying to work out in a manner we are able to mitigate those long lead delivery times because customer does not look for such leads, so this is something which is there. That is expansion into the market is [indiscernible] in impacting large project. But when we see power projects which are coming, they are Chinese EPC, Chinese manufacturer coming as a consortium. When they come as a consortium, we have difficult chances to get in. So this is something which we've been working on. But still, this is something which is hurting us. What are the risk mitigation? Supply chain risk is currently addressed through advanced planning and air freight. So we are doing a lot of air freight because we can't depend on shipping off by sea. So a lot of air freight we're doing. And long lead items are there. Like I said, '26-'27 also we're planning. So we are having contracts with key manufacturer. We are working with them to ensure that we plan ahead of time. We do some advanced planning based on our sales imports, based on our market imports, what type of orders are going to come. Order which have come is easy to order back, but orders which have not come, need to be ordered in a proper way. Though there will be slightly increase in inventory, but it helps customer requirement every time. So we're working on that. This Chinese expansion in the market, the high-risk items are distributed through working, but we are working on the regulators, decision-making to ensure [indiscernible]. These are items which we are working very closely with all the decision-makers to ensure that the local painter and the seller, mandatory requirements and all are in place. And we have lot of success into this area also. We have been able to manage multiple orders coming locally. We hosted at also that. We can deliver on time with the quality with the price what we're bidding. So this is an ongoing action, which we're doing a regular basis. So these are the key items, which are there in terms of what we have performed in 2025 and what are our positive and negative contributors and projection of that. So this is the presentation. Thank you very much for hearing me out. If you have any questions, I'll answer widely. Yes, [ Manav ].

I have a few questions regarding consumer.

Yes, please.

Okay. So the current net profit margins have come around 18%. So how sustainable is this? Should we view this as a new base level or is it due to a onetime feasible contract or raw material price?

If you see, power transformer or distribution transformer, the products what we are in, 18.43 is not a sustainable profit margin. 18.43 is -- because of multiple different strategic reasons which are there, but we are in a way where we are sustaining our product, our market as well as our cost somewhere around plus/minus 10% to 15% is what is a sustainable profit margin.

Okay. So in terms of the current order book, how much of the current order book is expected to be executed within the next 12 months? And what is the visibility in '26?

So whatever order booking we have right now, the unexecuted order book what we call, we have almost 16 months of order booking right now.

Okay. Also regarding on the Saudi joint venture for the transformer manufacturer, what stage are you in terms of approval CapEx and the expected commencing time line?

If you see, we are actually -- we have 2 joint ventures in Saudi Arabia. One is with -- in Jeddah per -- manufacturer of power transformer. One is with demand for retail transformers. The one which we started earlier was Al Sharif joint venture. The company name is called Nischal transformer company. Currently, we are financing the construction contract. There has been a slow pace in there, primarily because of the holidays, which are there because from Ramadan to till day, there has been a slow pace there. So we were able to do documentation, construction, contact is yet to finalized. We are expecting that this should be finalized by next month. We are expecting that this factory should be up and running by next year -- end of next year. Any other questions, please?

Congrats on a great set of numbers. My first question is in regard to the gross margins. Previously, you mentioned that the industry standard stands around 25%, but for the first 2 quarters, you averaged at around 35%. Is this trend going to be sustainable for the remainder of this year and into the foreseeable future?

You see, you're right that the gross margin for this type of products and all are around 25%, 26% only. In H1, we were able to have certain orders, including some service orders, which has given us this type of gross margin. I said I can see very clearly current market requirement, current levels of prices, customers requirement, our own design optimization and all. We have reached to a level, I can say, around 29%, 30% is what is a sustainable gross margin.

All right. I see. And then moving along to the Shunt reactor product. You mentioned that the Shunt reactor account for 75% of the new order book as per the last call. Could you perhaps get further guidance on these Shunt reactor orders?

I'm sorry, I don't think -- the Shunt reactor is not 70%. Export is 70%, okay? shunt reactor is a new product what we have launched last year, and this will be rolling out in September and this year, and we had a good amount of order for Shunt reactor also. So if you say -- in a way, you can say that the new products what we have launched in last 3 years contributes to almost 70% of the order booking, what we are, like 220 kV transformer, 400 kV transformer, Shunt reactor, inverted duty solutions and all, this contribute to 70% of the order booking what we have. So Shunt reactor is also a key product. Shunt reactor has shown a very fast momentum, primarily because it's not available in the region, it's not available within Africa and Middle East. It's getting done either from Europe, leaving aside Turkey. Turkey also manufactures Shunt reactor. So these are the markets which are there. So we're seeing that good synergy is there for the customer as well. So we have good orders for Shunt reactors. Inshallah, we'll be delivering the first Shunt reactor at September end, then it will get lot of synergies and lot of orders also for us.

Inshallah. And then what type of margins are we looking at in regards to the Shunt reactor?

You see, Shunt reactor is a specialized product. And GCC is still very, you can say, not really adverse in the terms of usage of Shunt reactor. Shunt reactor is used primarily at a very high voltage level here in GCC region. We use Shunt reactor 400 kV range only. They don't use for -- widely for 130 kV, 33 kV and all these ranges, okay? Shunt reactor is a very specialized product. It has good margins. It has -- it is critical in terms of manufacturer design, and the filler rates are also slightly higher than transformer, if it not produced well. So we are -- at this point in time, we are very, very cautious of manufacturing the Shunt reactor in a very systematic, sensible manner. We don't want to grab orders for nothing. We want to get orders. We need to manufacture rightly, we need to execute it rightly, we need to see that we demonstrate the confidence to the customer. So the margins are better than transformers for sure. Anyone else is there? Any other questions, please. [ Mr. Amzal ], you have question again?

Yes, yes. Since no one asked, I'll ask one more. So in regards to your -- in terms of your suppliers, in 2024, we saw your days payable outstanding, reaching up to 6 months, which is a massive inflow for your working capital. Could we see this trend reoccurring?

Please can you repeat again? I just missed it.

Yes. So in regards to your supplier terms, we saw your days payable outstanding or the amount of time you pay your contractors or suppliers to a portion that exceeds 6 months, which resulted in massive working capital inflow. Should we expect this to continue or to stabilize around this in the near future?

No, it is stabilizing, primarily because if you see, we call it as a great jump. When you're moving from a sales of OMR 16 million to OMR 36 million, so again, the raw material contribute a major factor in terms of your sales value. So there's a big amount of money, which is in cycle now, okay? And the moment we break from the transition, we will find that in Q3, Q4, that will be stabilized to a greater extent, and it will be much better... Anyone else having any questions? Yes, [ Amit ], go ahead.

I have a question on the revenue that you will be gaining for the last half of the year. For the first half, it is around OMR 36 million. So what are your expectations, considering a sudden drop in the order booking? So what should we expect for the rest of the year?

You see, first thing is we don't see this as a sudden drop or drop of order booking, primarily because it's based on what is in pipeline, what our order has been there. In -- just to give you feel so that you can get it, right now, there are almost OMR 26 million order and term finalization in Oman -- only in Oman, which can happen at any moment of time, okay? This has been delayed because of decision-making which are delayed. But otherwise, we don't see anything in terms of order booking or security factors. Second thing is our model of working is like we have order until 16 months, but for me, as an organization when we see, we see that today, I'm sitting for order booking for 2026 quarter 4, okay? So we are very clear and visible about what we're going to do for next 6 months, what we're going do for next year, 9 months also, okay? So what we see here is that it's based on multiple requirement, based on our supply chain which is available, based on customer demand, based on site availability, based site readiness, so we see -- we should be able to do around 70 plus/minus 5, that's what I'm saying.

Okay. So similar to the first half, the second half will be the same?

No, I will not say same, it will be slightly lower than first half. But yes, again, looking at multiple things because some customers have urgent demand, some customers are not ready with the site. So based on how they take it. As far as our production capacities are concerned, we will be doing the similar production volume for second half also. Anyone else has any question? We have some more time. Yes, [ Mr. Wazed ].

Since nobody is asking, I said that I'll join you guys. I mean I want to -- I probably have joined you once a long time back. Last time, I think it was a great discussion. Mr. Marhoon was there also. Contribution from the people that was really nice discussion. And I think I wanted to congratulate you, Mr. Ajmal and your colleagues, the team and the Board of Directors for the amazing results for the last 2 years since you have taken over. It was really -- it is very difficult, what you call, business -- industry business, and you guys, you have done a great job. If you allow me, I would like to talk in Arabic because you know what I feel this kind of discussions since we have the expert people in our, what you call analyzes, I wanted to see Omanis talking Arabic, and you have a great team, Mr. Ahmed and others, Waleed I think and Yousuf and others. We want them to -- if I can ask them in Arabic, I'll appreciate. I mean your leadership skill is amazing, Ajmal, and the result is really amazing. We wish to continue. I mean, as I said, it is a very difficult business. I mean the value for -- if you allow me, I'll speak to Arabic, please, and you can join to take some information from you, they will ask you, amin, is it okay for you?

Please go ahead, Mr. [ Wazed ]. Please go ahead.

[Foreign Language] So glad you talk in Arabic. What is really good things about the industry itself, and I hope they will contribute -- it is good to see our young leaders or Omanis leaders to contribute something in Arabic also.

Yes, please. Ali or Yousuf, please add.

Yes. [Foreign Language].

[Foreign Language].

[indiscernible] and it was a question or was it appreciation?

It was a very long question, but what I see is just to give you some comfort and other people also. We have a very vibrant team, which is there, young as well as with management also. We had -- I don't know whether you have seen there, Yousuf Balushi is the new General Manager for Voltamp Technologies, okay? He's also here with us. Ahmed Kharusi is another General Manager. We have -- good number of teams are there. So we are working collectively to see that we localize, we gel up, we focus in a proper way and a long way to go for them.

Ajmal, we are really appreciating your leadership and your colleagues, your -- I mean your, what you call it, your -- I mean, taking the team together, working together to higher standard. I hope, in the end, Omanis one day will see them leading some of our factories, our business. I mean this is the way what we have -- I mean do -- I mean sometimes big, what you call, this qualification whatever is not making the difference. I mean the skills, experience that's what is really done for the -- even though I'm not saying that study is not important, it's very important, but the experience, I mean, to work together with some experienced people to see the plus point in this kind of -- it is really amazing. We wish again the best. Only a small thing I wanted to ask about it. Regarding these provisions, I think it affects you a little bit because from the cost of sales I have seen around OMR 1 million, you made provisions, OMR 1.3 million compared to last year's effect a little bit. I mean collection of money is very important. Is there any reason for that, Ajmal?

We have actually -- if you see, we are trying to make a governance structure of our financial receivables in a very stringent manner. Though we discuss internally whether to -- whether we have very stringent creditor, whether our provisioning system is very stringent award. Currently, our provision system is very stringent. Based on that, there are certain customers where their deliveries happen, but payments is not collected, so we as a prudent measure, we are providing it. But most likely, that will also go by end of the year. That's what we...

Can I have another question also, Mr. Ajmal?

Yes.

About future growth plans. I mean now you have Saudi plans happening next year. What about other initiatives? As you said, I think the market in Oman is quite limited. So what are your other future plans where we can see the company growing even bigger?

You see, what we are doing is we are actually working at multiple levels. Like if you know our factory in last year, we inaugurated our distribution transformer factory expansion, where we did the lean working and expanded it. Right now, we are working in Sohar, our all-time power transformer factory where there's expansion going on as well as the expansion, the investment for CapEx for Shunt reactor. Testing is going on. This should be, inshallah, completed by end of September. That's one expansion, which is a big expansion, which should increase the production capacity. As you know, we are doing 2 joint ventures in Saudi Arabia. What we see there are 2, 3 in pipeline right now. We are looking very seriously into having a service business in Kuwait. We are trying to have assembly line in Qatar. We are thinking about doing something in Africa also. These are certain things we are in pipeline. But inshallah, I start up working on it only in 2026, the moment I see things getting materialized because I don't want to get a full exposure also. So there are steps which are there. So I see Voltamp, inshallah, going in globally with other countries also in a period of time.

Congratulations again, fantastic set of numbers. I think you've answered most of the questions when it comes to the outlook and how strongly your place. I just wanted to suggest something based on, obviously, the fact that I have been in the market for many years. Now Voltamp is trading extremely attractive in terms of earnings and cash flows. But obviously, the stock is thinly held. And in terms of pricing from a retail investor point of view, it looks a bit unattractive simply because it's OMR 800. Fundamentally, it doesn't really make a difference, but people perceive OMR 800 is expensive. So I had a suggestion based on, obviously, my experience of this market that if we can consider a stock split, which will not do anything for Voltamp as a company. It just increases the number of shares. It doesn't do anything on your retail earnings. That remains unchanged. But from a perception point of view, it could help the stock appeal to a broader category of investors, so this is just something I wanted to sort of -- I'm sure management like you, you've already thought about it, but I just wanted to sort of suggest this on a call like this.

Really as this is something which is in our mind. We're just thinking how it works and what are the advantages, disadvantages as well as what type of impact it will have. We -- management is working on it and while we will discuss also with the Board. And inshallah, if it goes well, if it's fine, suitable, we'll take a decision on that. But your point is taken, we are also looking into that direction.

I appreciate that. Just to play the devil's advocate, now you've said on previous calls that your order book is looking healthy. I just wanted to ask you if oil prices have to remain under pressure, let's say, this $65 goes to $60 for whatever reason. And this green energy transition slows down a little bit in the sense that the government doesn't really commit the same amount of funds that they have over the last few years. Do you see the Voltamp story remaining intact? I mean I'm just trying to figure out what are things that you worry about as a CEO of this company that you managed to sort of turn around and bring to this profitable state? What are things that you worry about from Voltamp's perspective?

See, the worry for anyone is things which are not in your control, okay? Things which are in your control, you will work hard to see that it is done. Things which are not in control, example, as I said, if suddenly, the government takes a decision that they will not invest on the green energy or green transition and all. And it comes down practically, how we do it? So what we see here is the strategy what we made for ourselves is that if you depend on one country or one product or one process, you are actually aligned to it and you will have higher risk of getting out of your track, out of your -- so that's what we are doing actually is we're trying to expand as much as possible so that our risks are spread across. So if there is a risk at one place, there may not be risk at another place, and we do a lot of marketing, business development plans. Africa is different than GCC, GCC is different than Europe, Europe is different than America, okay? There are certain decisions which goes differently also. So right now, for me, the most important thing is how I am able to have my spread of risk in a way that I'm not driven through other people's decision.

Okay. Okay. But as of now, when you look at the order book, these guys can't cancel orders without any recourse, right? So you're comfortable for the next couple of years is what I understand?

Yes. Because these are strategies actually. If you really ask me, energy transition is a strategy and green energy is a strategy. Carbon footprint is a strategy. These are part of the visions also. When Oman say 0 carbon footprint by 2040, that means generally it's a commitment, okay? It's a commitment globally. So when they have this comment, it can slow down, but it cannot stop. And again, these are large projects, and we are into business which are large asset business. So what happens basically is you cannot shut down any vision or any direction in midpoint. So we are in a stage where -- for example, take example, Oman want to do 20 gigawatts of solar power energy, okay? They can't be suddenly deciding though we'll cut down 20 gigawatts to 2 gigawatts because there's an ecosystem, which is around it, okay? There is a full ecosystem, which is around it and that ecosystem will not allow them to take such decisions. This happens where every country in every place, they can delay for some time. But if there is a change, then it will have a bigger impact. But they can be changed also based on what other things influences them. So that's what we do is, okay fine we have Oman, we have UAE, we have Saudi Arabia, we have Kuwait, we have Yemen, we have Africa, we have U.S. or we're looking into Europe. So these are the base, which are there. So if some decision goes sound, we increase something else to cater to our requirement.

Makes sense. Okay. So you're sitting quite comfortable now at least on the kind of order book, the kind of margin visibility, especially on the power transformer side that you have. So I think the company looks comfortable for the next couple of years.

At least 3 years, we don't have any concern -- serious concern on the table.

And are you still -- aspirationally you still want to be the OMR 100 million kind of revenue run rate company? And do you see that happening over the next 3 years?

Yes. If you see internally, we had a target of OMR 100 million for 2030. I hope, inshallah, this will be before that 2030. Anybody else has questions? I think [ Mr. Amzal ] had a question, and he was not able to listen to me. Is that right, [ Mr. Amzal ]?

Yes, yes. I believe my question was already addressed. It was also about stock split consideration.

Yes. If no one has questions, can I close down? Anyone has any other questions, please? Thanks a lot. Thanks, everyone, for having this Investors Relations meeting. We appreciate your support. We appreciate your time. Thanks a lot.