Dee Development Engineers Ltd

MR. VAIBHAV SHAH – EQUIRUS SECURITIES PRIVATE LIMITED

Ladies and gentlemen, good day, and welcome to the Q4 and FY '25 Earnings Conference Call of DEE Development Engineers Limited hosted by Equirus Securities Private Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touch-tone phone.

Please note that this conference is being recorded.

I now hand the conference over to Mr. Vaibhav Shah from Equirus Securities. Thank you, and over to you, sir.

Yes. Hi, good afternoon, everyone. Thank you very much for joining into the Q4 FY '25 Earnings Call of DEE Development Engineers Limited.

I will now hand over the call to Mr. Sanjeev Sancheti, Head, Investor Relations. Thank you, and over to you, sir.

Thank you, Vaibhav. Good afternoon, everyone. It is a pleasure to welcome you all to today's call. We are delighted to have the senior management of DEE Development Engineers Limited with us. Joining me today are Mr. Krishan Lalit Bansal, Chairman and Managing Director; Mr.

Pankaj Agarwal, Chief Operating Officer; and Mr. Sameer Agarwal, Chief Financial Officer.

Before we begin, I would like to draw your attention to the safe harbor statement included in our earnings update presentation, which is available on both BSE and NSE website, requesting each one of you to have a good look at that.

With that, I now invite Mr. Krishan Lalit Bansal to share his opening remarks. Mr. Bansal, over to you.

Thank you so much. Thank you, Sanjeev. Good afternoon, everyone, and a warm welcome to all. We appreciate your presence today on the Q4 and FY '25 Investor Call of DEE Development Engineers Limited.

I shall begin by sharing key business and operational highlights from the quarter, followed by our CFO, Mr. Sameer Agarwal, who will walk you through the financial metrics. Before diving into the specifics of our performance, I would like to express our heartfelt gratitude to all of our shareholders, analysts and stakeholders for the continued trust and engagement. Your support is vital as we navigate both growth opportunities and industry headwinds.

We are pleased to report a strong performance in Q4 FY '25 with revenue from operations rising 17.7% year-on-year and 76.8% quarter-on-quarter to INR2,864 million. For the full fiscal year, operating income reached INR8,274 million. On the operational front, our expansion at the Anjar facility is progressing as per plan.

We expect to commission an additional 15,000 metric ton per annum capacity by October 2025, bringing the total capacity at Anjar, excluding heavy fabrication to 30,000 metric tons per annum. Simultaneously, the development of our high-wall seamless pipe plant is advancing on schedule. We remain on track to commence commercial production by January 2026. A key step

in our backward integration strategy aimed at improving supply chain efficiency and cost competitiveness.

As covered in the press release earlier this month, we are deeply disappointed with the recent downward revision of the tariff order for our 2 biomass power plants based at -- issued by Punjab State Electricity Regulatory Commission. It is our firm belief that the decision is legally untenable and also fails to reflect the ground realities of operating dedicated biomass power plants.

Unlike cogeneration units that these industries -- industrial by products like bagasse, our plants rely solely on externally sourced paddy stock, a costly and logistic-intensive fuel. By putting 2 fundamentally different models, the commission has made assumptions that are arbitrary and unsustainable.

This decision undermines years of work towards rural empowerment and environmental protection. Our plants have prevented stubble burning across over 80,000 acres annually, provided livelihood to more than 8,000 rural families and directly supported India's climate goals.

Ignoring these contributions sets a worrying precedent for the future of Green energy in India.

The company has filed a review petition against PSERC's tariff revision and is exploring all legal options to protect its rights. The steps taken by the authorities undermines years of work towards rural empowerment and environmental protection.

Our projects are more than just power plants. They are instruments of social, economic and environmental transformation. These plants supplemented stubble burning across over 80,000 acres of land annually, provided livelihoods to more than 8,000 rural families and directly supported India's climate goals, ignoring this contribution sets a worrying precedent for the future of green energy in India.

Looking ahead, we remain committed to operational excellence, strategic technological investments and sustainable growth. We will continue to adapt our strategies to ensure long- term value for all our stakeholders. We sincerely appreciate your continued trust and support, and we look forward to achieving new milestones together.

Thank you all. Now I will hand over the call to our CFO, Mr. Sameer Agarwal, to talk about the financial matters.

Thank you, Bansal ji. Good afternoon, everyone, and thank you for joining our Q4 and financial year earnings call. Before we move into the question-and-answer session, I would like to take a few minutes to walk you through the financial highlights for the quarter. I trust you have had a chance to review our earnings presentation and press release.

While Bansal ji, has already outlined the broader business outlook, I will now focus on detailed financial performance for the period. Revenue from operations Q4 FY '25 stood at INR286 crores, reflecting a robust growth of 17.7% year-on-year and 76.8% quarter-on-quarter.

For the full year FY '25, revenue from operations reached to INR827 crores, making a 4.9% increase year-on-year. As of April 30, 2025, our order book stood at INR1,275 crores, offering strong visibility going forward. Operating EBITDA for Q4 FY '25 stood at INR63.5 crores, up around 84% year-on-year and over 1,000% quarter-on-quarter.

Correspondingly, our operating EBITDA margin expanded by 797 basis points year-on-year and 1,868 basis points quarter-on-quarter to 22.2%. For the full year, operating EBITDA stood at INR123 crores, up 20.7% year-on-year with a margin expansion of 196 basis points to 15%.

Profit after tax for the quarter rose sharply to INR31.5 crores, representing around 166% year- on-year increase PAT margin improved 614 basis points year-on-year and 1,918 basis points quarter to 10.9%.

As mentioned by Bansal ji, the Punjab State Electricity Regulatory Commission issued an order resulting in a downward revision of tariff for the Muktsar and Abohar plants. The tariff for the Muktsar plant was reduced from INR8.59 per unit to INR3.50 per unit, while the tariff for the Abohar plant was revised from INR7.47 per unit to INR5.42 per unit.

Going forward, the annual revenue impact due to revised tariffs related to expected to be approximately INR260 million for the Muktsar plant and INR125 million for Abohar. The company is actively evaluating all legal and regulatory avenues available to protect its contractual rights and commercial interest under the applicable laws.

As mentioned during our last earnings call, we are on track to achieve a top line revenue of around INR1,300 crores in FY '26, reflecting over 50% growth compared to the FY '25 base.

While we are confident of delivering an EBITDA margin in the range of 19% to 20%, the recent downward revision in tariff for our biomass power plant may impact profitability and margins at the same is not reversed or revised upwards.

We are actively pursuing appropriate legal measures to challenge this tariff revision and remain hopeful of a favorable resolution. With a healthy order book and a strategy aligned with the rising capital expenditure across our key customer segments, we are optimistic about sustaining strong revenue and profitability momentum in the near to midterm -- medium term.

We remain grateful for your continued engagement and support. As we pursue our strategic priorities, we are committed to delivering long-term value and keeping you informed on our progress.

With that, I now open the floor for questions.

Thank you very much. We will now begin the question and answer session. The first question is from the line of Agastya Dave from CAO Capital.

Congratulations. Sir, could you repeat the EBITDA margin guidance for next year?

So I told the EBITDA margins shall be in the range of 19% to 20%. And we need to take the impact of the biomass tariff revision by the commission. So it is to be learned post the revision petition or the final order in this regard.

Understood, sir. Sir, next year, what kind of capex will we see because we are very close to commissioning both the plants, I mean, the expansions. So what kind of capex will we see for next year and the year after that? Like if you can give us a sense of the maintenance capex that you will require?

So as far as the new capex is concerned, we are already undergoing expansion of our new Anjar facility, of which we shall be doing another INR100 crores of capex in FY '25, '26. And as far as our maintenance capex is concerned, that shall be always in the range of INR10 crores to INR15 crores on overall group level.

So just for clarity, sir, the CWIP as of now stands at almost INR150 crores. That will get capitalized next year fully plus INR200 crores. So INR250 crores will get added to roughly INR650-odd crores of gross book?

Great, sir. And sir, in terms of the timelines, you shared when the commissioning will happen.

How soon can we start ramping up, sir? In which quarter will we see like a substantial jump in volumes? And you mentioned INR1,300 crores of revenue target, can you also provide the volume numbers for the entire year this year and what you expect in terms of volume growth next year?

Sir, as far as the ramp-up is concerned, we are already in the process of ramping up since the production has already been going on for quite some time. And the present order book, which we have to execute in this financial year to cover almost in piping, it will be around INR1,100 crores or so, something -- anything between INR1,000 crores to INR1,100 crores will be there in the piping segment.

So it's already aligned that we shall be doing part of it from our Palwal facility, part of it from Anjar facility and part of it from our Assam facility. So it's all lined up. So we are not waiting for any other things to happen to achieve those numbers.

And similarly, for the coming years also, we are having a substantial good, I will say, pipeline, our Pankaj shall explain you that if you want some enlightenment on that. But we are quite comfortable as far as our pipeline is concerned.

Yes, sir, I'm very clear about the pipeline. It's looking very strong. So sir, if you can't share that, can you share the rough capacity utilization for the last 2 years, FY '24 and FY '25?

So sir, it has already been discussed a number of times over the call that the capacities, which we have mentioned is in metric tons, whereas the capacity -- the measurable capacity for oil and

gas sector is always in a die-inch basis, whereas in power sector, the capacity is measurable in metric tons basis.

So as far as the competence and the ability of the utilization of the available capacity, I would say we -- though it is not in terms of percentage capacity utilization because of oil and gas sector, most of the jobs are from oil and gas sector, where the weight of the jobs are lesser, but the volumes are higher.

So we need to emphasize upon the overall revenue which we are earning rather than capacity utilization. As far as the order book is concerned and going forward pipeline, we are booked for almost our entire capacity.

The next question is from the line of Dhavan Shah from AlfAccurate Advisors.

Congratulations for a great set of numbers. So my question is on the Piping Solutions. I think if I break it up the revenue between piping then heavy fabrication and then power. So you mentioned that the piping solution can do roughly INR1,000 crores to INR1,100 crores revenue in FY '26?

And in terms of the project-wise, if you can share, I think last quarter presentation, you mentioned that some of the orders were delayed from the PHP side. I think it was towards the GAIL order. So how much of that is executed in Q4? And how much is it still pending?

And apart from that, if you can also share which could be the key orders which will be executed in FY '26? And what could be the realization per ton or per kg, if you can help to understand how that mix would change from FY '25 to FY '26 for piping situation.

Request Pankaj sir to answer that. Pankaj sir?

Yes. So coming to this oil and gas sector, what we have the orders. First question is the GAIL.

We have closed almost the total value, but around maybe INR10 crores, INR15 crores is still pending, which we share closing somewhere in July.

And coming to the breakup of the oil and gas and power, we still have good orders from oil and gas. It's around 73% of the total value, what we have as of today. And from power, we have around 20%. So per kg rates are really good for power sector, what we have. It's very difficult to answer your question to say that what is the per kg number of the oil and gas and power as on date because I calculate it that way.

So Dhavan ji, just for more clarity, because it all depends upon the nature of job which we are processing for determination of per kg realization of revenue. Sometimes the metallurgy of the job is steel-only normal carbon steel. And if the metallurgy goes higher, then the per kg realization of revenue shall be higher.

So there is a lot of variation in terms of job which we are performing from right from carbon steels to stainless steels or alloy steels or higher set of alloys like in Inconel, Incoloy -- so it would be really difficult to measure the organizational performance per ton of revenue.

Understood. So sir, in terms of the key orders, if GAIL is already executed, so apart from GAIL, which could be the key orders, which will be executed in FY '26? If you can share even 4, 5 orders, that would also be fine and the value also, if you can help us to understand?

Sir, we have this Dow chemical order, which will be executed in this year. Apart of the Dow, we have a lot of order from this Linde now, Linde for the kits. Then fittings BHEL orders are there for the pipe fittings as on date. So these orders will be executed. What would be the size of Dow order?

Okay. Understood. And I think if I look at the revenue of heavy fabrication annually, it is roughly INR50-odd crores right now and the power gives you roughly INR70 crores, INR60 crores, INR70-odd crores of -- sorry, INR80-odd crores of the revenue in power and then your heavy fabrication gives you INR50-odd crores.

So INR130-odd crores from these 2 segments. And sir already mentioned that the FY '26 is looking probably INR1,00 crores to INR1,100 crores revenue from the piping side. So I'm unable to understand this INR1,300 crores number. I mean if I include all these 3 things still, I think the numbers doesn't match up to INR1,300-odd crores?

Sir is not counting the Thailand subsidiary number in piping, actually, he is just mentioning that it is an Indian piping. So since that is a different subsidiary, so overall piping, if we add both the things from India and Thailand subsidiary, then the piping would be somewhere around INR1,150-plus crores. So rest of the numbers shall flow from the power business and Fabricom.

Understood, sir. And recently, I think you also announced some big order from the US oil and gas company that is multimillion dollar opportunity. So if you can give some idea, I mean, what could be the annual opportunity from that particular client? And how big opportunity it can be maybe 2, 3 years down the line from that particular customer itself? I didn't get -- come again, please? You recently, I think 3, 4 days... He's asking for Exxon RC.

Okay. So we got the rate contract from ExxonMobil USA. So that will be like for their various projects which they are executing it. So this recent one is for like 18 months, they have signed the rate contract, and we are expecting around INR40 crores, INR50 crores business in this financial year from them.

And how it can be big maybe 2, 3 years down the line, what could be the maximum?

Much bigger, much bigger. See, they have considered very normal working normal projects in the rate contract. But out of the rate contract, they have many other projects which we have bidded directly to them. So those will not be a part of the rate contract.

So again, they are still aligned with their buyers and the project team since they have signed the rate contract for the very first time. So still aligning with their project team and their project team and purchase team. So I'm very sure that this value will be very substantial in the coming years. Okay. Okay. It is the start of the relationship Understood, sir. And in terms of the power orders, when do you foresee the major chunk of the orders from BHEL would come in because they are already sitting on roughly more than INR1.2 lakh crores of orders from the power segment.

INR2 lakh crores orders. They already have it.

Yes. So when do you foresee the major chunk would come in, in terms of the piping orders?

So let me tell you in a different way. They are planning to execute around 10 boilers in a year against their capacity of, let us say, 7, 8. And out of that, like 5 unit boilers piping, critical piping, they are planning to outsource as on date. And 5, they want to do it in their own shop in their own -- like they have a plant in Thirumayam

But again, since they are very shortage of the manpower, they are transferring the people from their piping division to the boiler division because they are more focusing on the boiler part.

And they want to outsource, they want to give the lease -- they want to give their plant on the lease now.

So let's see like -- but we are very hopeful that we start getting business from -- in another 2 or 3 months from now because we have recently bidded to them, and we are technically qualified.

Price bid will be open maybe in next months time.

And what could be the opportunity from one boiler for piping business?

Sir, we have already told you it's a very big opportunity. We cannot disclose the numbers right now, but it is a very big opportunity is what we can tell right now. Okay. And sir...

Sorry to interrupt you, but we request you to rejoin the queue for follow-up question. Okay.

The next question is from the line of Tanay Bheda from Kotak Securities.

Tanay here from Kotak Mutual Fund. Congratulations on the good set of numbers. I just had one question on the orders executed in the month of April. So if I look at the press release, we executed around INR52 crores of orders in the month of April, and we have given a guidance of INR1,300 crores for the full year. So any reason for soft execution in the month of April and how Q1 is panning about for us?

Sir, historically, April is the slowest month because people go on holidays and all those things.

But in general also, we have a very poor quarter 1, but then subsequent quarters keep on ramping up and the quarter 4 is always the best. And the same thing is going to happen in this year also.

But we shall be doing substantially much better Q1 than any other previous year, I can only tell you that.

The next question is from the line of Gautam Rajesh from Everflow Partners.

I have one -- my question was on the power side, how much of the order bidding has happened by BHEL? And how much of it has been won by us so far? Who are our key competitors? And how much orders have they won in this segment?

Let me reply that. Good question, sir. See, I'm not considering any other business from -- like from BHEL, which is not of our interest. I'm considering the interest what we have in the critical piping. So for the first time, we have released the tender for 3 units, 3 boilers package. So we have bidded to them. It's under technical evaluation so far.

And we are very hopeful as a businessman that we'll get this opportunity. And other than the critical piping, they have floated various standard for fittings for the low pressure lines. So we have not got those orders so far. But fittings, definitely, we got around INR60 crores, INR70 crores out of the total maybe INR100 crores.

For the critical piping, which they shall be doing in their shops Yes. So for that, we are expecting now.

So again, I will just put it like that. Right now, whatever ordering has been done for the power cycle piping, most of it has come to us, very small part might have gone to other people like carbon steel, but all P92, we have got it. P91 has been distributed to some people, but very less volume.

And as far as piping is concerned, it's a tender is under evaluation, and we expect its results to be out in coming 2 months' time, 2.5 months' time, and then we'll have a clearer picture. But on the face of it, we do not see much competition in that also. On the face of it, I'm saying, and you never know when the bid open what happens and what doesn't happen.

So you're saying that you don't see much competition in this critical piping segment?

Looks like as for the receipt bids, this is what is our internal calculation. This is what we are thinking.

Sir, I probably didn't catch you there. On the BHEL thing that we have won, how much would that be valued at?

Sir, again, I'm telling right now, it's very difficult to say in terms of value, but each unit is anything around INR200 crores or something like that, you can put it like that. But it's a very, very rough figure. I'm not saying that this will be INR200 crores or INR150 crores or INR225 crores. But on an average, you can say it will be something around this. It's a very, very rough estimate.

The next question is from the line of Ankit Soni from Sharekhan.

Congratulations on a good set of numbers. Just on the capex side, we mentioned that we'll be doing around INR100 crores of capex in financial '26. We were also getting up a facility for the seamless piping solution. So INR100 crores would be covering even the capex for that facility as well, right? Yes.

Okay. And so this plant would be more operational in January or maybe the last quarter of financial year '26. So this will be more backward integration product something. And then this would also be helpful in margin integration in financial year '27?

That's it, sir, because it's a part of backward integration. Otherwise, whatever margin we are giving to our suppliers, so that margin will get added to our bottom line.

So any broader idea on the financial year '27 margins, if you can guide on that?

Sir, it's too early to say. As far as the guidance is concerned, we have given the guidance for this FY '26. And that needs to be evaluated going forward, getting the formal orders and basis the order book, we can only give that number to you.

Okay. Fine. And on the second thing is on the plant side, which we are facing the plants bagasse plant. So is there any -- will there be any provision created for financial year '26? Or how is the further approach on that? Can you just give a highlight on that?

So as far as the current situation is concerned because these orders of tariff came post completion of the FY '25 and these are subsequent event, the time is not there to actually assess the overall impact of this on the financial statements.

Therefore, on consol level and on subsidiary level, our Malwa subsidiary and at consol level, the qualification has been made and an emphasis on matter is also placed in the audit report in respect of our second plant, that is the plant, which is in our holding company. So that is done till now.

And going forward, since we have already applied for the review petition and appropriate steps are being taken and there are a lot of pressure from the society as well as authorities or maybe Central Government or State Government or judicial authorities like Supreme Court of India.

I foresee a good amount of pressure on the commission or the appropriate authorities who are going to decide the tariff. We are hopeful to get the wish tariff in this regard.

Question is from the line of Kamlesh Bagmar from Lotus Asset Managers.

Congrats on good set of numbers. And I really want to take this as an opportunity to appreciate the monthly releases which are announced by the company. It's a big effort, sir, and I really appreciate your transparent approach towards the company. Sir, my first question is on part of the orders, like where do you see your order book to get closed by the end of this year? I know there are a lot of orders coming from. But where are we comfortable to close our order book at. Pankaj ji.

See, we are expecting a good order book in this financial year. The worst scenario, what I consider the hit rate will be around like INR1,600 crores to INR1,700 crores, we should be booking the orders.

So considering the order book what we have in hand and then further booking of around INR1,700, INR1,800 crores and doing the invoicing of around INR1,300 crores. So we shall be having a good order book when we reach 2026. Will be sustainable in the coming year.

Okay. So the incremental order, like say, we will execute INR1,300 crores of orders. And on top of that, we will secure further orders of say INR1,600 crores, INR1,700 crores?

But we can say that broadly speaking, we are booked for this complete year and maybe for first quarter or maybe for half of the next quarter fully as per our projections already given to all of you. And the pipeline, again, still appears to be very, very strong. So we are not afraid or we are not considering that the order book will be a problem. Again, I'm saying if we have to consider, we have to again consider our capacity constraint only.

Whatever capacities are there, they are not indefinite or in finite capacity. So we have to operate within those set of capacities only. And for that, we have substantial and good number of orders already in hand and the likely new orders, which will fall in place very soon.

Okay. And sir, if we take Q3 and Q4 because Q3 was impacted because of delay in orders and like say, the execution was not there. So if we take Q3 plus Q4, then our margins are around 15% because in Q4, our margins would be looking much higher because a lot of orders got bunched up and execution was there in Q4.

So 15% was the margin, Q3 plus Q4. And as we are suggesting that 19% to 20% would be our margin guidance. So does it mean that a lot of efficiencies are going to come up because of the

full absorption of our order movement from, let's say, the allocation of orders between 2 facilities, Anjar and Palwal. So a lot of efficiencies are still going to be visible in next year?

Yes, sir. So as we are coming up a dedicated facility for oil and gas sector at Anjar, the complexity which we used to face during executing 2 sector jobs in 1 facility at Palwal, that will go away and the proper efficiency will be there in terms of optimal utilization of resources as well as the proficiency of the facility.

As you know, the Palwal facility is primarily designed to cater the power sector jobs. So broadly, we shall be executing power sector jobs from Palwal facility. Similarly, we have designed our Anjar facility to execute the oil and gas sector jobs. And that plant is having more set of automations and the workflow, which has been given and the way plant has been designed, the operational efficiency is bound to come.

And moreover, sir, since the turnover is going to increase by almost 50%, the allocation of overhead is going to reduce drastically. So that itself is going to give a direct impact of 4%, 5%.

So broadly, sir, this is last question. So it's once you both -- like say, Palwal is ready, Palwal is there. So Anjar, once it is commissioned, seamless pipe gets commissioned. And then what would be the mix between revenue in both the plants, 50%, 50% or all depending on the power order?

It will majorly depend upon the power order, sir, but we still anticipate that the turnover from Palwal will be much higher than our Anjar facility.

The next question is from the line of Akshat from Niveshaay Investment Advisory.

So I want to understand that what is the timeline for execution for all of the sectors… all of the 3 segments? So how much time does it take for order to get executed?

So we have already told that the average time for execution of a particular order ranges between 6 months to 18 months. So whatever orders we are having on hand, so we always take that these are to be executed in the next 12 months' time. Some of the job gets over before the year or some may spill over the financial year -- financial period.

So it remains same for oil and gas and power side and...

No. In power sector, the execution period is lesser than what we have in oil and gas sector.

Sir, in power sector, we shall not be getting more than 9 months' time. Maybe maximum 10, 11 months, but less than a year in any case.

Okay. Going forward this is going to happen that power and heavy fabrication side will be contributing more revenue or something? Can you repeat please? Your voice is not very clear actually.

Going forward there will be changing contribution for power and heavy fabrication side

Sir, can you use handset. You are not audible.

So I was asking that going forward, the revenue contribution from the other 2 sectors will be same or it is going to increase?

You can say it's almost the same, sir, but the -- right now in this financial year, the revenue will be much more from oil and gas sector than the power sector. But in the coming years, it may level to 50, 60 or something like that, sir.

The next question is from the line of Mahesh Bendre from LIC Mutual Fund.

Great performance in quarter 4. So sir, I joined a little bit late. So sir, any guidance for FY '26 in terms of revenue and margin?

Sure. And sir, in terms of, I think, order inflow last year, I think we have booked 2 major orders.

One is from Dow Chemicals. And second, I think 2 weeks back, we have not disclosed the name.

But any such orders you see over the next 12 months?

So there will be many orders from the power sector in that bigger range. And also, we are in discussion with some oil and gas players also where we are expecting large volume of orders, sir.

Okay. And sir, last question, we have a good exposure to the U.S. now. Any impact on tariff on us?

No, there's absolutely no impact, sir, as of now. And even if it tomorrow comes, since our costing is much more competitive and it's going to be with all the countries. So I don't think we should have any impact on that.

The next question is from the line of Jignesh from Jiva Capital.

Really appreciate the kind of results that you have delivered in Q4. And as you had mentioned in Q3 con call that it was one-off. And to understand the margin increase, are we seeing any major benefit from the Anjar facility in terms of logistics cost?

Yes, definitely. And going forward, since 50% of our raw material we used to import and 50% of our overall revenue, we are exporting. Therefore, since the volumes of oil and gas sector jobs are quite higher, therefore, the logistics cost in -- particularly in oil and gas sector is a major cost

factor, which decides the EBITDA margin. So we are going to save a lot of expenses on account of logistics cost.

And in terms of productivity with this new facility of Anjar, do we have a robotic or this new kind of facility to increase our productivity? And would decrease the time for executing an order?

Yes, sir. We have done as much automation as we could perceive, and it's showing very good results, and we are quite upbeat on that.

Right. And sir, lastly, this -- suppose if we start getting good orders from power sector, so would there be any to shift some work from Palwal to Anjar, so would there be 1 or 2 months of delay or maybe lower revenues that we can expect in FY '26 because of the shift?

As of now, there is nothing on the cards as such. Going forward, if we foresee for next 2 to 3 months. But if something comes up, we will definitely guide you.

Ladies and gentlemen, as there are no further questions from the participants, I now hand the conference over to the management for closing comments.

Bansal ji, if you can just quickly brief everybody.

Thank you so much, sir. Thank you, everybody, for being part of this call and sparing your valuable time to listen to us and to raise your questions. Thank you once again. Thank you so much.

Thanks, everybody, for taking your time on a Friday evening and staying put for this call. Really appreciate. Thank you, Equirus and Chorus team as well for their time. Appreciate.

Thank you, sir. On behalf of Equirus Securities Private Limited, that concludes this conference.

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