WPIL Limited (WPIL.BO) Q2 FY2026 Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to WPIL Limited's Earnings Conference Call hosted by Emkay Global Financial Services Limited. [Operator Instructions] Please note that this conference is being recorded. I now like to hand the conference over to Mr. Abhishek Taparia from Emkay Global Financial Services Limited. Thank you, and over to you, sir.

Good evening, everyone. I would like to welcome the WPIL management and thank them for this opportunity. We have with us today Mr. Prakash Agarwal, Managing Director; and Mr. Krishna Kumar Ganeriwala, Executive Director. I shall now hand over the call to the management for the opening remarks. Over to you, gentlemen.

Thank you. Good evening, everyone. It is a pleasure to welcome you all to our earnings conference call for the second quarter and first half of the financial year 2026. Let me first take you through the financial performance of the company, followed by operational highlights. For the quarter under review, consolidated revenue from operations stood at INR 426 crores. EBITDA was INR 80 crores, with EBITDA margin for the quarter at 18.87%. Profit after tax amounted to INR 52 crores, and PAT margins were reported at 12.16%. On a stand-alone basis, revenue stood at INR 176 crores, while EBITDA at INR 35 crores, with EBITDA margins at 20.01%. Net profit stood at INR 25 crores. PAT margins were reported at 14.21%. For the first half under review, consolidated revenue from operations stood at INR 805 crores. EBITDA was INR 130 crores, with EBITDA margins for the quarter -- for the half at 16.09%. Profit after tax was INR 78 crores, and PAT margins were 9.64%. On a stand-alone basis, revenue stood at INR 357 crores, while EBITDA stood at INR 64 crores, and EBITDA margin 17.78%. Net profit at INR 44 crores. PAT margins were 12.32%. The Product division reported strong revenues of INR 151 crores for the first half of FY '26 compared to INR 138 crores in the same period last year. Order booking and backlog continued to improve, reaching the highest ever level of INR 422 crores. With revenue growth in the first half and record order book, the growth momentum is expected to be maintained for the full year. The inquiry pipeline remains robust and order book growth is expected to continue across all sectors. The project business continued to face challenges with revenues falling to INR 89 crores compared to INR 247 crores in Q2 last year. Two additional projects were commissioned during the quarter and OEM activity is expected to pick up from the last quarter. The company's focus remains on project commissioning and moving into O&M. The domestic project business remains focused on project completion, which are progressing well. Improvement in the water sector is now anticipated next year only following the resolution of current challenges. Moving to the international business. International revenues grew sharply to INR 456 crores in the first half compared to INR 288 crores in the same period. Margins have started improving and are expected to normalize through the year, supported by a strong international order book. PCI Africa is awaiting some large contracts in Q3, which are expected to boost growth, while Gruppo Aturia secured strong orders in oil and gas during the quarter. The Australian business delivered improved performance on the back of strong execution and with promising opportunity in the water and oil and gas segments set to grow. WPIL Thailand introduced new drainage products to capitalize on the expanding Thai drainage market. PCI Africa and Iygindao in South Africa maintained healthy order books and strong project pipelines, positioning them well to benefit from the expected growth in the African water sector. [indiscernible] Italy continues to progress on completing legacy contracts and rebuilding brand credibility. With this, I take your questions.

[Operator Instructions] The first question is from the line of Deepak from Swan investment.

Sir, firstly, on the domestic project front, if I'm looking into H1 FY '26 number, I mean, roughly, we have done INR 200-odd crores. And if I'm looking into the balance sheet, contractual assets, which is unbilled revenue that has also risen this time. So if you can update us how has been things are shaping up, especially on the JJM front? And currently, how should we see progress on these projects? And how should the execution stand out for the H2 FY '26 and going ahead? And what would be the outlook for this segment?

So I think there are 2 parts to the project business, which we address. Our primary focus on what we can control has been to push up execution. And we anticipated the situation, if you remember, 2 years ago, and we started cutting back on new order intake. I think both of those 2 have positioned us well. Our existing order books are well in control now. And most of our projects in the JJM have progressed beyond 60% achievement and they are all in the final stages of commissioning. So I think we will be commissioning well in time and actually gaining some credibility because of our active commissioning program. That is one side. So with that, we have been pushing up earlier and most of our supplies are also now complete, and we should see more commissioning in the second half of this year, which will be very positive. Second front is the JJM, as everybody is very well aware that we are waiting for the resolution of the fund issue between the center and state. And that is the -- we are hoping, and only problem is the time line is being shifted on a regular basis. We had expected in the budget last year -- this year budget, sorry, in February. it's November now and the resolution is still anticipated. However, I think things are and we should get some positive news shortly. So this will have 2 effects. One, it will lead to cash flows are -- we have some amount of money still blocked up, which will be released. And secondly, we can accelerate the balance completion of projects and also we expect the bid pipeline to improve.

So sir, just again, from the understanding point of view, if you can also give some sense how much is our overall exposure towards the JJM projects, especially in the UP in terms of the order book and also in terms of the receivable at the current juncture?

We don't have any project so we have no exposure. And our JJM project mostly is in West Bengal and MP, and our entire exposure is now down to about INR 1,100 crores, which is all in the last 30% stages. So we have reduced this exposure. And financially also, if you see our balance sheet, we received funds and we have reduced our liability. So I think the good thing from our perspective is it's a very big positive that our contractual liabilities to client is reduced drastically and our creditor liabilities is negligible. So these are 2 good things we have achieved. Now we just are waiting for funds release to accelerate all balance activities.

Okay. So sir, just continuing on this part, I mean, from the H2 FY '26, on the domestic execution front, how should we look into it? And secondly, on the international project division, I mean, we have the order book of INR 930 crores. How should we see the execution for this in H2?

Two things. One is that domestically, it is completely dependent on the policy, both central and state policy, how it moves. And we will be cautious. We are cautiously moving. However, if the fund flow improves, we will accelerate our invoicing and bidding. So that's one area which we will -- I think everybody is closely monitoring. You are also in the news, it is there. The good thing for us is internationally. Internationally, the third, fourth quarter is going to be much better because most of our business is in South Africa, the project business, and their execution picks up in this half. They are following a different time frame. So we should get a big boost in the second half year. So internationally, we see the boost continuously increasing. And domestically, we are cautiously moving. We will be able to ramp up. I think we have -- because we have executed most of our -- we've got our project execution well in control. So that ramping up will not be a challenge.

So sir, for the international order book, what is the average execution period? And what is the margin profile for this type of revenues in the international?

For us margin profile this quarter itself, our stand-alone was 20% EBITDA and consolidated was 18.87%. The first half was 17.78% and consolidated 16%. So I think our margins have recovered in the second quarter, as we had mentioned, and this recovery will continue through the second half. These were businesses we had newly acquired. So there were some margin hit in the first quarter. But third and second, third, fourth quarter, it will improve and normalize for the year.

And sir, what is the average execution period for the international order book?

I think they default. So they are a bit longer tenure, but we are -- as we have mentioned, we are expecting large contracts now. So I think you will see a revenue boost.

Okay. And on the margin profile front, international margins are on the similar to the domestic?

Yes.

The next question is from the line of Jainam Doshi from KRIIS Portfolio.

So first question would be like since we have a good amount of cash balance available with us even after the acquisitions we did. So are we looking out for any further inorganic opportunities?

Yes, we are. We are also -- we are looking at some larger acquisitions on the inorganic opportunities.

Okay. Okay. And also, if you could allude on the CapEx plans for this year. And also, it will be helpful if you could share the split of international revenue country-wise because we don't report that. So that would be helpful for us to get a sense on how the international market.

Sir, it is reported. You have to see the presentation and reported as percentage if you can work it out from there.

Okay. Okay. We'll go through it. But if you could share the CapEx plans, that would be helpful.

So CapEx is negligible because we are well kept. I mean all our plants are having enough sufficient capacity to handle this. As I said, the product business is looking as a big up -- so we are well geared for this. We don't need any substantial CapEx.

Got it. And also, if you could share some light on river linking opportunities, like how would be our role and whether we are keen on this kind of projects and how it will [indiscernible] river linking projects?

Yes, River linking projects are going ongoing, and we are well positioned there for product supply. And I think the whole momentum is a bit slower. We expect '26 to pick up the river linking irrigation projects.

The next question is from the line of Vinay Nadkarni from Hathway Investment Private Limited.

[indiscernible] your total order book, you said total execution of Jal Jeevan Mission you're saying is around INR 1,100 crores orders, of which only last 30% is pending. Am I right? Or is INR 1,100 crores the last 30%?

So most of the cost, approximately on an average, yes. So both have moved into 60% plus.

Okay. And those which we have completed, the O&M revenue would have started flowing in?

Yes. They have started this year. So first, you have gone through defect liability period and now they are moving into O&M. So O&M we expect pickup in the second half and from next year onwards.

Okay. And these projects, when they will be completed, you are looking at completion by end of this fiscal year or the balance?

So there are some projects which are -- they are linked to customer supplies like in West Bengal, some projects have supplied from the customer, which will be deferred to they can supply us the pipe. But in other projects, we expect to be commissioning them by March.

Okay. Now on the products division in the local domestic supplies. Suddenly, they have started picking up. Is there any particular reason why for the past so many years, they were comparatively slow and suddenly, they have started picking up?

I think the company itself, we have done well. We have introduced new products. So we have a very good export market supporting this. Our international supplies have increased, then also new product development and customer relations. So we're getting a bigger market share in India.

Yes, yes. No doubt about it.

And things like [indiscernible], drainage, different segments have opened up.

Okay. And you expect product division to continue growing at the same pace in the next year also besides...

The product business is -- I think all our businesses are very well positioned now. I'm very happy to say that -- share that. And the product business is looking at growth -- constant growth based on the order backlog we have, as I said, which is at record levels and also the inquiry pipeline. And secondly, even the project business, I think we are very pleased with the fact that we will have reached a high degree of completion and commissioning of these projects, which should place us very well to -- once the outlook improves to benefit -- to be a big beneficiary there.

Lastly, on the total outstanding from Jeevan Mission, can you quantify the figure?

2 The outstandings have come down. We got a good amount of payments from LP, but still there is a hold up, and it's now in small spurt. So as a figure -- how much -- about INR 250 crores, INR 200 crores, INR 250.

[Operator Instructions] The next question is from the line of Deepak from Investment.

Sir, in the previous con call, we have also mentioned that we are seeing strong inquiries from the Power division as well as we are seeing some kind of inquiries from the Noel division. So if you can give some sense of how should we see the order inflow opportunity? And how should we see the order book diversification over a period of time, that would be really helpful.

I think it's more important that all the parts of the product business are moving well. The orders shift from time to time, sometimes like earlier water was a very big area. But now there is more balance across all segments.

Okay. And similarly, sir, on some of the opportunity we were also exploring for the Gruppo Aturia side, if you can give some sense, I mean, what has been the standard status there? And how should we see that part of the business?

What did you mention? I didn't understand. Can you repeat?

So on the Gruppo Aturia front also, we were also exploring some opportunity on the international market.

Gruppo Aturia is now looking good -- they have a good order book and the entire oil and gas was a [indiscernible], which has also now started performing from them. They had very good water orders from MENA region. So that plus the oil and gas should give them good boost. So second half should be good there.

Okay. And sir, on the product division front, actually on the year-on -- sequentially, there has been a sharp improvement in the this thing. On the year-on-year, it's relatively flat. Is it more to do with the last year assuming any base effect? Or I mean, should we expect there should be...

Yes, I think it's very difficult to look at it. I think the good thing is that the highlight will be that Q2, half year, our international business has brought about stability to the business. We were a bit concerned as we had pointed out that we were getting too much domestic oriented. So with this 56%, maybe going up to 60% international business, that gives us a good balance. Secondly, as you can see, the product is also at about 56%, 60% versus project at 40%, 45%, which is another good balance we have got. And the margin profile, as we have always mentioned, are between 15% to 20% and our margin profile in Q2 has reached there. And these are the important parameters and all parts of our business are well -- are performing well. The project business in India, I think we have recovered very well. We have played out as per our objective, which was to bring the order book into control, and we have done that very well. And now we have to wait to be focused on the opportunities. As the opportunities come, we will be a very big beneficiary of in the project business. the parameter of balance is very important. As you can see, this ensures our consistent performance.

Okay. And sir, in the annual report, you also mentioned that we are looking into some expansion plan at the Nagpur facility for the product division. So if you can give the progress and what kind of CapEx and what is the product profile where we are looking out to expand?

Not worth mentioning, we are doing that so that just to show you that we have enough capability within us to cater to the growing demand. So we will be putting up a facility there and we will adding more manufacturing. But the CapEx will be quite insignificant, mostly brownfield. That's why it will be less.

Okay. And sir, this time, if I were to look into the P&L, I mean, minority interest has increased significantly at INR 10 crores. So if you can give some broader sense, is it, I mean, because of the new consolidation and this would be the incremental sustainable minority interest kind of level or...

There has been no change in the shareholding structure at all. This is just the fact that we have money abroad and the investments -- international business investments are being done from there. And as we have discussed in the past, [indiscernible] this minority interest is a cash flow issue, which we will do at a reasonable time, appropriate time. But today, the concern is basically stabilizing the business which we have done and the growth which we see going forward.

Okay. But I mean, from the overall perspective, last year, minority interest was at INR 22 crores. I mean this year, in the first half, we have reached INR 14 crores. So how should we see it?

Sorry to interrupt, sir. But should you have any follow-up question, please join the queue. The next question is from the line of Sankar from Parami Financial Services Private Limited.

I have 2 questions rather. You said there is a big opportunity in the project business. So when you say big opportunity in the project business, you are referring to Jal Jeevan Mission here?

You see we've had a pickup in the Jal Jeevan for whatever reasons there are. But there is a huge amount of work to be completed, and there is a huge amount of work to be done in the urban water and irrigation. So the prospects of projects are very high in India. And we, as a company, have now got tremendous amount of qualifications and by commissioning all these large projects and capabilities now. So we are well positioned to benefit from this. Our focus has been for the last 1.5 years, 2 years to build on our order book and improve execution. So I think the improved execution is now going to be helping us benefit from the future potential.

So you expect the tendering of these orders getting to pick up in the second half?

As soon as this finance issue is sorted out of the Jal Jeevan, it will all pick up.

And there is a long amount of outstanding from the Jal Jeevan Mission. So -- and I have been following your company for quite some time. You are very particular in terms of the cash flows to come and before you bid for the new projects. So are you confident that this money will come in the second half?

No. Our -- first of all, we have -- our outstanding has reduced quite considerably, I would say, in the first half of the year from March. That is one. Secondly, the balance outstanding, we are confident they will come. It might be deferred. I expect it in the -- surely in the second half of this year by March. But it's not a matter of concern. It's getting deferred because of a policy issue, not because of any other challenge.

One last question on the balance sheet front. In this result, you have announced the conversion of those preference shares into equity shares. These were redeemable preference shares. So how have we converted those into equities?

There is a provision in that any type of shares which remains unissued that can be reconverted reclassified into any other type of shares. So we are going to reclassify it as...

And these were issued to the promoter group initially.

No, because [indiscernible]. We are increasing our capital, giving us the flexibility to capital. We have not announced any immediate plan.

So that I understand, the conversion of this 14,000 equity shares of INR 10 face value into equity shares, which is like 14 lakh equity shares.

It is not [indiscernible], it is reclassification from redeemable [indiscernible] shares to equity. this is not issued.

Yes, yes, yes. This is just the reclassification. And these are held by the promoter group only?

No, no, never ever. This is the authorized capital we are talking about, never ever [indiscernible]. So we are not talking about any issued capital, we are talking about only authorized capital.

Okay. So this was not issued anywhere basically?

Yes, never issued right.

The next question is from the line of Ashwini Sharma from Emkay Global Financial Services Limited.

So my first question is on the O&M business, which you mentioned that it's one of the growth areas. What kind of revenue we are estimating from O&M in FY '26 and FY '27?

We have an order backlog of roughly about INR 600 crores in this sector. And most of these projects will go into O&M starting in next year. Next year, some will go into O&M and there will be continuously going into O&M. So I think by the end of '26, '27, we are looking at about INR 70 crores of -- INR 70 crores to INR 100 crores of O&M revenue.

Got it, sir. Secondly, again, I wanted to check on the margin side. We have seen significant improvement on the EBITDA margin and also on the gross margin side. What led to this margin improvement? And what kind of sustainable margins we are looking at?

Our margin profile is between 15% to 20%, and that is something we have maintained. The last quarter was a blip because of certain acquisitions which happened and certain onetime expenses which were captured. So this is a normalized level, and we expect to maintain this going forward.

And thirdly, sir, from an opportunity perspective, do you see any opportunity from the PSP projects and then the new initiative of the government from Bhamputraivad hydro opportunities. Do these opportunities increase our TAM?

So our TAM is basically -- the river linking is one area. Irrigation and river linking is a major area -- area for the government, and we see good opportunity there. Similarly, we see good opportunity. There is a lot of work to be completed in rural water and urban water. And all 3 give us a considerable TAM. And considering the fact that this year, if you see last couple of years, the investment has slowed down because of whatever reason, and we expect there to be a catch-up on this. So I think '26, '27, we should see a catch-up and makeup for these [indiscernible].

Any guidance you would like to give, not for FY '26 or FY '27 in terms of revenue?

I think projects, I don't want to take a call because we have -- this issue has been us for quite some time. As soon as this will resolve, which I expect very shortly, we will be coming out with our projections.

The next question is from the line of Nirav from Emkay Global.

So congratulations, Mr. Agarwal and Mr. Ganeriwala. First of all, I think this is a very sharp sequential improvement. I'm no expert, but I just wanted some clarifications on a few industry structure. Sir, the total pump revenues is pumps and accessories, as you call it, is about INR 1,000 crores split between India and overseas. Given that we target specific customized pumping solutions. In your opinion, given the geographies that you target, how big is the market in your opinion? I'm sure that the organized data might not be around. But just curious, what do you think what is the size of the opportunity in the market that you operate?

See, India is approximately about 3% to 4% of the global pump market. The global pump market is estimated at about $60 billion to $70 billion. And out of that, we do mostly engineered and industrial pumps. So that market would be close to 50% of that or 50% to 60% of that. So about $40 billion would be the market, I think, size. And in that $40 billion, what we have done is positioned ourselves in every product category, and we are trying to increase our geographic reach. So I think the considerable TAM is there and upside. So for us, as we suddenly started seeing in the domestic product business, we should see all our international subsidiaries also see this pickup.

So this is a very big market, sir. In that case, so you think the -- so how is the market structured? You've got a lot many smaller players doing customized work? Or -- I'm just wondering that why can't we grow at 30%, 35% if the market is very big and we've got very healthy ROIs and stuff like that? What are the reason, what stops us?

So for example, the U.S. market itself is about 30%. Now that U.S. market and the EU would be another 20%, 25%. And the rest is the MENA region. So the APAC region is quite small. We don't have a presence in the U.S., which we are trying to penetrate into. So we're missing out on 30% of the market. [indiscernible] into Europe. So we have some access to the 25%. We are trying in the MENA region, but the biggest market is the U.S.

Got it. And I'm assuming so, let's say, even if we got access to oil pumping technology, which is the Australian business and we are anyway good in water and...

All of the if markets [indiscernible] markets, yes.

Yes. So is it difficult to, let's say, take the technology out of Australia and tap organically into a U.S. market? Or do you think we need to try and get some inorganic presence over there?

Yes. I think in our sector, we find that inorganic approach is more feasible because front end is needed in each market for client. Because there is a lot of application engineering and the front end is therefore needed. It's not so much an export. It's more -- you have to be local.

Got it. So a question that is aligned to that. Do you think that -- so we've done a very significant job, if I look at your last 10, 12 years performance that we are very, very conscious about our acquisitions, and we have created significant value out of the acquisitions. But I'm also wondering, does this thought cross your mind that we are overly conservative in terms of our multiples that we try to acquire the companies, and we are sort of missing out on growth because of that? Can we be slightly more, what is the right word, more tolerant about valuations?

No, I think that would not be appropriate because I think our model is partially successful because we buy and consolidate and it's like a buy-and-build model. So today, we are very strong in all the geographies we operate. So be it in Europe, we are very strong. In Africa, we are strong. Thailand, we are strong. Australia, we are strong and India, we are strong. It's no use to just have a footprint and not build on it. Must be cautious on that to maximize gains.

Which I understand. Maybe I was not very clear with my question. My question was that I'm sure there are opportunities in U.S., maybe you are not getting at the right value. Does it make you more tolerant about paying up a higher price?

No. So I think we are gearing up for it. We are in good conversations right now. And that's why we are taking -- we are looking at capital. So that's why we've increased our authorized capital, and we have a good amount of cash lying with us. So maybe this is the appropriate time to get that big target.

Perfect, sir. And last question. Are there any -- I'm just wondering, you've got these big investments happening in data centers and solar and stuff. Are these any of these areas which demand any pumping solutions, water solutions, or any new areas that are coming up which can sort of impact the growth rates for the products, pumping products?

The biggest area is which people are seeming to miss is that water and drainage are becoming very serious concern. [indiscernible] as you have seen, we are having huge [indiscernible] problems. So we see considerable infrastructure investments in both water and drainage primarily. Secondly, oil investment is again set to pick up because I think the demand for oil is not going down anywhere anytime soon. So these are all our captive areas are looking very strong.

The next question is from the line of Saket Kapoor from Kapoor & Company.

Hope I am audible?

Yes, Saket, you are.

Sir, just to put forward the questions firstly in the P&L part, although we have seen incremental revenue from the product division, but the employee cost has gone up. So what explains this increase in employee cost from sequentially on a consol basis from INR 63 crores to INR 74 crores when the project work has been on the down track?

No, we have a fixed cost there. Sites have to be manned. So that cost structure is still there. We've had to mobilize to expedite the work. And revenues have gone down, but the site -- the type of work which is needed is there. So I think there is a lag period to revenue and site costs. So you will see an evening out. I think it's too early -- a quarter is too early to make a comment.

Okay. Sir, when you spoke about our South African acquisition and then in the presentation also, you have alluded to the fact that quarter 3 and quarter 4 are generally big quarters. But those quarters will be for the acquisition of orders only. So the execution will be with a lag effect. So when you are mentioning in your presentation, that...

I mean both. I have mentioned 2 parts. One is we have seen the seasonality of South Africa is different from India. So similar to India the third quarter financial year ends in the public expenditure ends in December. So therefore, we expect third year to be -- third quarter to be a good quarter from execution. Simultaneously, the companies are expecting some large contracts that is what we have mentioned. So 2 separate aspects.

Okay. So when we look at the international order book for the project part, it is at INR 920 crores. The domestic being the slow moving inclusive of the O&M is INR 2,100 crores. So in terms... Hello?

Yes, yes.

Sir, in terms of execution, how should we look at this INR 920 crores of international pie to behave for H2, sir, since it will be -- the execution will pick up going ahead?

I think we should -- as I said, we have acquired this business in May. The main business, PCI was smaller. PCI, we have acquired in May. So it's just been 3 months, 4 months since then. And we should see that picking up in the second half. So I think towards March, we will have a better understanding of the revenue pickup, but we see the second half as better than the first half. And the new orders which will come, they will also contribute to that.

Okay. So there will be a short time period also for the execution of the new orders. That is what you are alluding to?

Yes, we understand it will contribute.

Okay. Sir, one small -- again, now to the -- when we look at the cash flow, we have seen our tax payment to the tune of closer to INR 100 crores. So what translates into this INR 100 crores outgo of taxes paid in the cash flow?

Because last year, as we had mentioned earlier, that last year, we had made that extra payment on a conservative basis, we paid for capital gains last year and then we have claimed that back. So that is the capital gain on the [indiscernible] transaction.

No, sir. I am telling that there is a net outgo of INR 100 crores in the taxes.

[indiscernible]

No, I'm talking about the cash flow for the period ending 30th September, taxes paid net of INR 99.96 crores.

Tax has been paid this year.

Okay. That is the acquisition part of the story?

Yes, yes. That part was paid this year pertaining to prior period, which we have confirmed in the last in our March -- it was paid after March. So it was mentioned in the last year [indiscernible] .

You have always walked the talk in terms of what you speak, you deliver in terms of this -- especially for the product segment, wherein you were very clear that, that's going to pick up and that will be the major support going ahead. So taking that into account, if you take H2 as the next remaining part, how will the product division performance would be? Will this run rate improve also from here in terms of the product division execution? I think so there also, it is INR 655 crores and INR 422 crores, the mix closing order book. So this will be -- how will this second half play out?

Yes, product business is, as you said, the order book is rising and the execution should further pick up. It is hardly picked up. I think it should look at a bigger pickup in the second half.

Okay. So yes, last year as a whole, sir, what should be the growth we should it on a ballpark number? Last year, we did INR 944 crores. And first half already, we have crossed INR [ 450 ] crores number. So a good growth of closer to INR 500 crores can be expected, or what should be in for the next H2?

We don't map it like that because what we can say is the domestic product business, which was -- which is the domestic product business is showing that first half will be about INR 151 crores. So this from INR 138 crores last year, so we will -- the second half will be much stronger than this. So we can see the domestic business growing drastically.

And for the international part, that was also significant.

Yes. International -- I don't -- there are that [indiscernible] well. So I think international also will do well, but I've not represented like this. But we see -- as you said, we have a strong order book in Gruppo Aturia, which will push that. I think, yes, you're right, the international business -- the entire product business should do well going forward.

Just to conclude with 2 points. Firstly, a small suggestion, sir, you have looked into our request for the NSE list.

Sorry to interrupt sir...

Madam, I will conclude only. Please allow me to conclude Madam. Thank you to the Board for looking into the request. And definitely, we have the listing going ahead. Sir, only small point is if we can provide some business update along with the results submission to the exchanges and then we can come up with this presentation even after an hour's time. The order booking and all the 2 slides which are important for us to analyze the number, if that can continue with the results, that will suffice and save a lot of our time, sir.

We will try to expedite this process. We apologize for this short time we will try to improve this in the future.

Sir only point was, sir, just to conclude was that the gap which we have for H1 because of the project division execution being lower, are we confident that we will meet last year profitability numbers taking into account the acquisition of African business and the strength which you are seeing? Is a good understanding, sir?

Yes. That's what the first half shows, and that's the way we are trying to progress. And hopefully, the project business -- domestic project business will also pick up.

Okay. So we can match our last year numbers, at least on the profitability front?

That is what we did. We wanted to derisk our business and which we have achieved as seen in the first half. Now the focus is build on this and hope that the domestic project business also picks up.

The next question is from the line of Siddharth Jain from HSS Assessment Management.

I just need to know that if the company is looking to any of the sectors like defense or naval or shipbuilding, any pump or pumping system we are able to provide in that sector?

Yes, we are well established in the naval sector. And we have received large orders, and this is an area we see constantly growing and traction going forward.

So the kind of move the government is having towards the shipbuilding sector for next 4, 5 years or maybe 10 years, so we can expect a good order book from this sector in future as well?

Yes, of course.

And one last question, sir. Any of the areas where we can -- we are actually providing pumps in the nuclear sector also?

No, we had a nuclear business, which we sold 1.5 years ago.

Yes, yes. I saw -- I read somewhere in the presentation regarding the same. So I'm just confirming about...

We do supply some pumps to the nuclear sector.

Okay. But in future, we are not looking for any of the same?

Maybe if the opportunity presents itself.

Since we're having a good cash balance, we can acquire a good company regarding the same. So just thinking on those lines.

Yes, we are in lots of conversations, and we are hoping to -- as we have mentioned that we're looking at some transactions.

The next question is from the line of from [indiscernible]

Am I audible?

Yes, you are.

Just a quick question. I know you alluded to this point in 2 of the questions. Just I wanted to know so you said the Jal Jeevan payments are improving probably in a couple of months, the payment would release. I wanted to know why -- I mean, what gives us this confidence? And second is, of course, I know the ministries are different. The payments under Amruth are coming in very well is what we understand from other players. Jal Jeevan is a pain point for every player. So is it state specific? Or I mean, is it something that, let's say, as an outsider, we don't know, is it some -- any issue which led to a particular delay in payments in Jal Jeevan? And then what makes you say that, I mean, these payments would improve? And current receivables from Jal Jeevan are, I mean, is it 6, 7 months old billing? Or if you could just help us understand around this point?

So I don't -- so the Jal Jeevan scheme, there are -- if you go through the media reports and you understand from the Jal Jeevan, it's a scheme between the center and state. And we understand that the fund disbursement, there are some issues there, some points which they are trying to clarify and then release the funds. So hopefully, we see this is making good progress, and we should see some results soon.

Okay, sir. No problem. So I mean, still, I mean, it's broader sense only that it will improve, but there's no specific reason on to why it got.

Specific reason is that this issue has quite -- it's been resolved to a great extent, and we expect now the funds to start flowing.

Ladies and gentlemen, that was the last question for today. We have reached to the end of the question-and-answer session. I now would like to hand over the conference to the management for closing comments.

So thank you all for participating in this earnings conference call. I hope we were able to answer your questions satisfactorily and at the same time, offer insights into our business. If you have any further questions or would like to know more about the company, please reach out to our Investor Relations managers at Valoreium. Thank you. Good night.

Thank you. On behalf of Emkay Global Financial Services Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.