Swastika Castal Ltd

Yeah. Hello, sir. Good afternoon. Sir, can margins improve further from current levels?

Market means, sir? Can you please, like, elaborate? You're talking about the opportunities of business or growth of revenue? Yeah, right. Like, margins can improve?

Okay, so margins. Sorry, sorry, I heard market. Sorry, I'm mistaken. So, we believe the margins, as I said, we believe the margins will should improve in coming time because of the focus that we are giving on operational efficiency, as well as -- as I said our expansion is already finished and we expect additional capacity to support higher business volumes and improve our ability to cater the increased customer requirement.

And moreover, we will have -- as we achieve the greater scale, we expect to benefit from operating leverage, which also improved absorption of fixed cost and better operational efficiencies as I said.

So, in this scenario, we see good business in front of us and we also continue to focus on productivity improvement and cost optimization initiatives also in the business. So -- but the

Okay. That's great. And sir, also I want to know that what is the expected revenue growth guidance for FY’27?

So, it is very difficult to give you in figures, but as I said, it will be -- we are projecting better than the last year growth also. And with our business -- with our customers, so I would also like to mention our customers such as we have good customers such as Hitachi, ABB, Siemens, GE, Toshiba. So, they are also having good orders and the same will translate to us.

Okay, sir. Yeah, that's all from my side, sir. Thank you.

Thank you. The next question is from Mr. Vinod Shah as an individual investor. Please go Yeah, good afternoon, sir. Yes, sir. Good afternoon.

On export front, do you see more export opportunities?

Yes, we continue to see opportunities both in existing market and we are expanding our customer base as I said. On the export side, we believe that there is a meaningful potential going forward and we are actively exploring opportunities. We are in discussion with few customers. I will take this moment to tell you that we -- last year we had added two new customer in export front. One is QAG, it is an Australian-based multinational, and one is Trench from Europe. It is also a multinational company, it's a big corporate.

And so at the same time, the customer addition remains in our focus area. We'll be adding more, along with strengthening relationship with our existing customers also. So, what is happening is, for example, we are approved vendor for Hitachi and so Hitachi has multiple factories.

Now last year we have got orders from one of their other factory where we were not supplying.

That also we have added. Our strategy is also to build long-term and sustainable relationship rather than focusing on short-term business gains. And all these corporates that we are talking about, there are few more in line that we are in discussion. And we are sure that export potential -- exports will be rising further. So, last year it has raised and current year we are working towards it so that it raises further.

Okay, okay, sir. And sir, how are you dealing with rise in raw material prices?

So, rising raw material pricing, we have a very set norms with all our customers. We have this -- clause with them, wherein the price variation, all the raw material prices that are increasing

is price passed on to them on monthly basis currently. And so the impact is not high on either side. And similarly, when it will go down, we will again pass on that same thing to them.

So, we are very clear with them. And not only raw material, we also have price variation clause for the fuels also that we use. So, we have price variation clause for that also because as you know crude is also increasing, the fuels are also increasing. We have price variation clause with maximum of our customer.

Okay, okay. Great, sir. I will join back the queue. Thank you.

Thank you. The next question is from Mr. Bhaskar Chatterjee from SMIFS Limited. Please go Sir, I have some questions. So, first of all, I want to ask that are you first generation or second in line in business?

So, no, my father started this business and I am the second generation in the business, but I am working in this factory since last I think now 18 years.

Okay. And which all the industry that we serve? Which one? Which all the industry which serve?

So, industry served -- the industries that we are serving is mainly into power, Infra Power capital equipment, and then railways, then oil and gases, fire fighting equipments. It is -- but maximum goes to power industry, which has very, very strong potential at this moment. And our -- as I said, our customers, I name my customers also, they are all A-grade customers and they are growing very fast and they also want us to grow fast.

Okay. And any new client that we have added this financial year?

Yeah, last financial year we have added two clients. One is Trench as I said and QAG. And more clients, like one or two more, but these are two prominent names wherein you can -- you will get it.

Okay, okay. And what are your outlook towards this industry?

So, my outlook towards this industry is like I think all my current customers are booked for the next at least five years. This is what I have been told. And plus other we are also trying to enter into other sectors wherein we are adding more portfolio in railways, in other places. We have also active started actively participating in government tenders for at GeM portal for some components in defense and other products. So, that we have also started participating in.

Okay, sir. Thank you for your answers and all the best. I will reach out to you for any further meeting.

Sure, sure. Sure, sir.

Thank you. As there are no further questions, I now hand the conference over to Ms. Sakhi Panjiyara from Kirin Advisors Private Limited. Thank you and over to you, ma'am.

Thank you everyone for joining the conference call of Swastika Castal Limited. If you have any queries, you can write to us at research@kirinadvisors.com. Once again, thank you everyone for joining the conference. Good day.

Thank you. On behalf of Kirin Advisors Private Limited, that concludes this conference.

Thank you for joining us and you may now disconnect your lines. Thank you.