Analyzing...
• Revenue, the last quarter is 52.73. Against the last year of 65.43. There's a decline of around 19% in the revenue and, the 9 months is 150.71 crore of this, 9 months ending 26 and, last year, it was 150.45 crore. So it's almost, same… similar.
The growth outlook, The Company expects to achieve overall revenue growth of around 25%. on FY-26, with total tractor revenue around 50% plus, and the Crane revenue is expected to grow around 10% with the overall expected EBITDA margins in the range of 12.5% to 13%.
Regarding the export, the company have started the export marketing activities. And appointed, some good dealers. This is a response of the… we have participated in the agri exhibition in Germany in the last year. And, in Agritech exhibition , to open the new market, especially in Europe. The company have received a trial order from Germany of 48 Tractors, which is a good beginning, and in some other country also, I think UK also, we got some little small trial order.
Regarding the dealer network, during the quarter ended December 25,The company has added 25 new dealers in Tractor Division, taking total dealers, headcount is 200 plus. Although, in this 200, some dealers yet to start. The LOI has been issued, and they are preparing their showroom and other activities. In Crane Division also, the company has added 5 new dealers during this quarter, taking the total number of crane dealers, plus 25 dealers.
Regarding this new project, new pick and carry crane project update. The project work has regained momentum during the current quarter. The project is expected to start commercial production in the first quarter of 26-27, FY26-27. The civil construction work at new site is in full progress as per approved plan, timeline, and specification. The civil work of the main set,
including the pre-engineered building. SAD and related works are expected to be completed by March’26.
Order for the major machinery have been placed, and procurement is in progress, as per the approved project plan. For tower cane, proto, design and, first sample. Onward, it'll be ready by March, this, in this financial year. And onward, second quarter, FY26-27, the company is expected to start the commercial sale of the tower crane. And in FY26-27, we are expecting a revenue of around 60 to 70 crore. Figures in this, next financial year, the next financial year. This is All, I think. Now we can, we can… Reply the specific queries of the participants.
Thank you to the management team for the insightful introduction about the company.
We will now move on to the Q&A session. Participants who wish to ask a question, are kindly requested to raise their hand.
We'll take the first question from Kaushal Sharma.
Hello. Yeah, hi sir, very good evening. Am I audible?
Yeah, you are audible, yeah, please.
Tell me what is the progress in, tower crane, manufacturing production? And we have the plan to add 500 dealers in next 3 years, so how many dealers we have added in this 9-month financial 26?
Trial Production will be ready in this financial year. And we are expected to start the commercial sale from the second quarter of the next financial year.
Okay, and sir, what about the dealership that we have added in this 9-month Financial 26?
This… now the dealership number has gone to around 200 numbers. Earlier, I think it was 140, I think around 60. 60 dealers we have added, although all out of 60, some dealer yet to start the first lifting but the LOI has been issued. They are preparing the showroom and other, creating other infra facilities. We are, Anshulji, you can explain up to 500 dealers? Yeah. By which time?
Sir, we had received, sir, over the past… yeah, sure, sir. Sir, just to add, sir, over the past 9 months, post the IPO, we received over more than 175 applications who have applied for our dealership, but only 60 have qualified out of those, and Sir, our plan to add… so currently, with the current LOIs that we have reached, our number is 200, and our plan to take it to 500, we are well on track to achieve that plan. Rather, we are hopeful to achieve that before time.
Okay, and so, just want to understand the capacity that we have.
What is the current capacity utilization of both segment tractor and cranes, and how are we going to ramp up the same?
What is the overall volume production and sales volume in this 9-month, both in the tractor and the cranes? Could you please highlight on the same?
You know, first is the crane. Crane in the existing plant, we do not have more capacity. Therefore, we are putting a new facility, which will be operational in the next financial year, okay? Then the capacity constraint in crane will be over. And, yeah, and as far as Tractor is concerned, Tractor, the capacity is 12,000 numbers. There is still capacity available, but this year, as we have given the figure, we are expecting around plus 50% growth in tractor business, comparable to the last year. So slowly, slowly, every year, we will, as soon as we'll ramp up our dealer network, the number will automatically increase.
So, what is the volume in tractor and the cranes that we did in this 9-month financial 26?
Okay. Singlaji, you are having this current figure with you? Can you share these numbers?
Yes, sir?
Can you, can you share the 9-month figure of tractor and crane?
total tractor numbers for last years was around 2000 and for 9 months till Dec 31, 2025 tractor numbers are around 2000 as against around 1200 during 9 months of preceding year., so…
Last year, 1,200, and now 2,000 plus.
Mr. Anshul Khadwalia: Yes.
It is for crane, sir?
Tractor, Tractor.
Last year was around 735 numbers. This is, 705 number, sir.
705 number versus 735.
So what?
Well, I'm…
Is there degrowth in the volume, sir, in the crane?
It's just a marginal decline, sir.
Yeah, this is… I'll explain, you know, in this crane, this is a trump… our engine tram is changed completely, the new machine has come in, you know, we have started. Until last year, we were selling Tram 3 machine and tram 4 machine. Majority sale was of Tram 3 machines and few machines, new generation machine in Tram4. But now, both this emission gnome engine has been upgraded to tram5. State way going to tram 5, it becomes a little sophisticated engine. Then… and the price increase is also there.
Yeah, sir, I would like to add something here. So, sir, basically, in last year, the… we were working at old norms, and with effect of 1st January 2025, the new norms were introduced. So, therefore, the last quarter, was very good, because people were, you know, there was a surge in demand due to every, people wanted to buy the old model. So, that is the primary reason of this.
Since we are expanding our crane capacity and entering into the new tower crane, so are we expecting any jump in EBITDA margin next year? Like, we have guided 12.5% to 13% for the current year, but for the next year, is there any scope to increase in our EBITDA margin?
Should the governor is at optimal utilization?
Definitely. Once the volume increase, EBITDA is definitely going to… we are expecting it is going to increase.
By how… how much, sir?
Singla, how much, have you done some details?
approximately 2%.
By 200 basis points, sir?
Mr. Anshul Khadwalia: 150 to 200 basis points, sir.
150 to 200 basis point.
Okay, okay, so thank you very much for answering my question.
Thank.
We'll take the next question from Rahul Gupta. Mr. Rahul, you can ask your question.
We'll take the next question from Sameera Middha.
Hello, am I audible? Yes, ma'am.
Yeah, but yes.
Yeah, good evening, sir. Sir, first of all, I wanted to know the capacity utilization of crane as well as tractor division for Q3FY26.
Ma'am, crane is a Q3. We are working on almost 100% capacity. In the existing plant.
And tractor.
Tractor, ma'am, there is a… still potential, but as we have explained in the beginning, that, we are… we are… we'll be growing around at the 50% plus in this financial year. So, in the last quarter, rather, the volume tractor business growth was 88%.
Sir, if, if, Sir, if our crane capacity is running at almost 100% utilization, then how come the sales number has decreased on a YOY basis? For cranes.
Madam, this is a very…
Ma'am, the sales number which is decreased is around 4% only, so that is also because of a mix of certain models. Some bigger machines are produced in terms of… in less capacity, and the smaller ones we can produce in more numbers. So that is the reason.
Okay, so sir, before the, new norms were introduced, what was the average selling price of our crane, and now, what is the average selling price of our crane?
The average selling price has increased by approximately 10%.
No, little more. I'm sure, some little more, the last year, I think 19 to 20…
No, sir, sir, sir, I'll tell you, last year it was somewhere around 20, 19.5.
Which has increased by almost 10%, which is coming now to be 21.5 to 21.9.
So, that… that is the number in lakhs, right? Earlier it was 19 lakhs, and now it is around 22 lakhs?
Yeah, yeah.
Okay. And sir, when are we expecting the commercialization of our new crane capacity? I'm not talking about the fixed tower crane, the, pick and carry crane capacity.
Madam, this, the production, commercial production, will start in the first quarter of the next financial year. 26-27.
Okay. Sir, if everything is alright in our crane business as well, then why we have reduced the guidance from earlier, 20-25% growth in cranes to 10% now?
Mr. Anshul Khadwalia: Yes.
Ma'am, this was… this was because of the last year. The emission known was that from 3 engines. And suddenly, because of coming of this emission norm going to tram 5 engine, okay? The acceptability in the market, and there is a little price increase also. These engines are a little sophisticated. The training has to be given in the field.
Now I think that time is over. Whatever time is over. And the last… last year, because this emission norm… new emission norm will be… are coming in with the effective, therefore the pupil has, done more buying.
preponed their buying’s. So this was the reason, but after this, I think January onward, the things are going in a very different direction. We've got the better bookings now, and whatever time is required to, you know, establish a new product, basically, that is already taken. So now, onward, this January, we are expecting better numbers.
And, sir, just to add to what Chairman Sir explained, this shift is across industry. It is not limited to us. This is a huge shift from BS3 to VS5. So, whenever there is an upgradation in the norms, it takes a little while for the market to accept. And, you know, in approximately 6 to 9 months, once the market accepts, then the push starts again.
Okay, so on an industry basis, have things started normalizing again?
Mr. Anshul Khadwalia: Yes, ma'am. This month onwards, January, this quarter beginning onwards, things are normalized now.
Okay, okay, sir, thank you so much, and all the best.
Mr. Anshul Khadwalia: Thank you, thank you.
We'll take the next question from Dolly Chaudhary.
Hello, am I audible?
Mr. Anshul Khadwalia: Yes, ma'am.
happiness.
Hi, so thank you for the opportunity. I just had a few questions. So first of all, as you mentioned, that in 9 months, we did a volume in cranes of about 705. What was exactly this number for this quarter? Quarter 3?
Singla what was the number, last quarter?
Mr. Anshul Khadwalia: So, last quarter was there to 230 crane, sir.
200?
Mr. Anshul Khadwalia: 230
230 cranes, okay, mainly because of product mix change also. So, like, our new capacity will be coming live in quarter one, so, I guess in the initial level, we'll expect a lower utilization level, so what, like, what volume jump we are expecting in next year? Like, I guess this year will close around 1,000 cranes, like, similar to last year, but what are we expecting this volume number in next year, financial year 27?
Ma'am, there, once we start there at the new facility, then the crane production constraint will not be there, which we are facing in the past. Because marketing always having very, very large booking, and we're not able to deliver in timely, then ultimately the customer… we are losing the customers. Once that facility starts, and if we utilize that facility, the capacity will be 3,600 additional capacity. If you're able to utilize that room, 50% also in the first year, then 1,800 crane, we are expecting from that unit. 1,800. Yeah, that is additional business we are expecting from that unit.
Of course, we are strengthening our marketing also, simultaneously, because it's not only easy that once the production is there, it'll start selling also, but of course, we have created the market, and we have gone in more market also. Considering our new production capacity announcement.
Yeah, adding to what's just said, so approximately what, you know, we were estimating is to proportionately add approx… a minimum 1,000 machines additional in the next, financial year from the new plant. From 1,000 machines in addition to what we are already selling.
Yeah, there's the minimum numbers. Otherwise, we are targeting 1,800.
But anyway, this will be the minimum number, which we can…
100% sure.
So, like, from January, February onwards, are we seeing, like, the demand scenario getting, like, normalized because of price hike? Like, are people… have resumed the activity of, like, the… for getting the usual numbers, as it was impacted last quarter, and this quarter as well?
Yeah, so things are improving. This January, we have closed at very good volumes, and we are expecting, to, you know, whatever 4-5% degrowth we have done in the first three quarters, we are expecting to match it up in the last quarter, and we will not be closing at a, degrowth at the end of the year. So we… there will be some growth.
Okay, okay, and lastly, one more thing that, if I'll just take an estimation of around 1,000 cranes doing this year, and expand, like, doing volume of 2,000 next year, it's like a new jump, the minimum jump that we are expecting. And… and on other side, you just mentioned that we have added 5 new dealers, right?
So, like, if you can, like, just throw some light on, like, first of all, on which geography that we have new geography that we have entered recently in crane division, which we can see as new, because existing, I know that you mentioned that, as we didn't have the capacity, we were not able to supply the cranes, but we are also expanding to new markets and getting market share from other players, so which new geographies are we entering into right now? That can give a good volume next year.
Mr. Anshul Khadwalia: So, you know, as per our, research, we need approximately 60 dealers to cover the full country.
And right now, earlier, before the IPO, we were operating mostly in north of India, but now we are expanding to reach, you know, each and every part of the country, whether it is south or east.
And we are working in a combination. It is not like we are all working… we are only working on a dealer model. There is a combination. In certain places, we are starting to sell directly. We have appointed our own company-owned staff, in terms of sales and service representatives. And wherever we are not able to find a good dealer in the beginning, we are… we are, planning to sell directly few numbers, and later on, at a stage where we can get a good dealer on board. So it is a combination, but we are primarily focusing in the East as well as south of India.
Okay, and what would be the total number right now for dealers?
Around 25 dealers,
Mr. Anshul Khadwalia: Approximately 25, 26 dealers right now, are currently, which are working.
Which are working. So, like, these dealers are exclusive for Indo Farm, or they work for different brands as well?
Mr. Anshul Khadwalia: So, they are exclusive for Indo Farm when it comes to crane business.
Maybe they have some other product which is not, you know, related to our product. Like, maybe they are having a dealership of selling some oil or something else which complements the crane business, but has no direct competition.
Okay, okay, and, like, what number do we see going forward for these dealers? Like, what is the pipeline? Like, maybe some demand is coming from the dealer side also to get, added. So, what should we expect this number to go next year?
So, our target is to reach, Approximately 50 plus dealers. Where we feel that we can cover the full country.
So, like, we are confident that next year we'll cover the full country, at least for the start.
Mr. Anshul Khadwalia: Yeah, so, you know, once the capacity is in place, then we have the confidence to achieve.
Okay, and like, for our strategy to sell Tower Cranes also, like, these dealers who are doing pick and carry, I guess they'll not be the same for tower cranes also. So, how will, like, our strategy for Tower Cranes? Like, is the… we know that there's the demand in the industry, it was getting imported, but how are we approaching and establishing the product market fit for our product?
Mr. Anshul Khadwalia: Having a vision to work, directly also, and work via dealers. If I talk in terms of percentage, so approximately 75-80% of the dealers which are for pick and carry can be
utilized for Tower Crane Business also. But 25%, we will… we might have to appoint new or sell directly.
Okay, okay. Got it, got it, that'll be all. Thank you.
Thank you, ma'am.
We'll take the next question from Rahul Gupta.
Hello?
Yes, yes, Guptaji.
Sir, as you mentioned that the sales will grow 25%, is the 60, 70 crore revenue from Tower Crane included in this, or excluded?
No, no, our cane business will be only in the next financial year, 26-27.
It is excluded.
is excluded.
85% sales growth.
Yeah. This is… I have spoken around 25% top-line growth in this current financial year.
Okay, okay. And for the next financial year, sir?
Next, financial year, you know, sector, we are expecting to still further grow around 30% plus.
It is the.
Okay,
It's a little bit different on the market. Market, you know how the market goes, basically, because it is… the rain is okay, monsoon is okay, so we are expecting 30% growth. And crane… Crane, because we are putting a new facility, there we are expecting at least 1000 plus crane.
Pick and carry crane additional to the… what we are doing from the current plant.1000 plus crane Total number become almost 2,000. Okay. Yeah.
And, sir, what about tower crane?
Tower crane, we are expecting a revenue of, in the first financial year, maybe 60 to 70 crore only, top line.
Okay, and sir, what will be the EBITDA margin of tower crane?
It'll be almost in the… in the beginning, in these numbers, it will be almost around Between 12 to 13 only.
12 to 13. And, EBITDA mix what?
In the next year, we are expecting little improvement in the EBITDA. So, maybe, under, under 150 to 200 points.
Okay, it will be around, 14.5 to 15%.
Yes, you can see.
Okay, sir, thank you, sir.
We'll take the next question from Pushkar Jain.
Hi, am I audible?
Yes, yes, Jain Sir.
Yeah, yeah, sorry to repeat the same question. So, sir, My understanding is, 450 crores, probably, we reach in this year, in terms of revenue, and then 15% probably we grow in the existing facility because of tractor. From existing facility. A thousand cranes at an average selling price of 21 lakhs will make another 200 crores from the crane facility. Yes. And 60-70 crores from the tower crane facility.
So, are we expecting, like, 700, 800 crores of top line next year?
We are expecting these numbers, definitely, we are expecting these numbers.
Right, and on that, a 13% blended margin, and as capacity goes up, then.
Yes, yes, yes. Yes.
Yeah, but are you seeing… and also, second, on the industry level, are you seeing any slowdown in the crane market, like, or is it just because of the, like, these norms changing that we saw a temporary blip? Structurally? What is your view on the market going ahead?
This year remained because of the norm changing, and there was a little bit slowdown in the capital expenditure by, I think, the government also.
But next, you see this budget. The infra investment has been increased. So, considering this thing, budget thing, we are expecting that this growth momentum will come again in the construction equipment business, in the crane business. And calculate, of course, doing better.
Plus, we have… we have started opening in export.
If something happened in Indian market, then we try to compensate from the export. Therefore, we are expecting around 30% growth in tractor business, because the already capacity is available there. And we have started the export also. So, 30% from there, and due to the capacity addition in the crane, we are expecting all these things in the next financial year.
Right, and suddenly, like, we are growing very fast in tractors. Is there any structural reason why, like, in the market point of view?
This is, two, three things which, we have told during our… the last discussions, or earning calls. The tractor business, you know, we have invested some money in the NBFC also.
Right.
NBFC is also supporting us from this IPO and we are opening new market also. We have started investing in the marketing team, good marketing team, and opening new area also.
Earlier, we are… we are focused only in few states, all five northern states. Now we are going to the Karnataka, we have started, and Maharastra, we have started aggressively. So these new states also started giving some numbers. So, ultimately, our number increased. You know, this last quarter, then 88% growth. It is very good growth, basically. Yeah, yeah. Considering these things, maybe in the next year, we are still considering these figures, but we are expecting minimum 30% growth that we should do in Tractor.
Right, and this new crane facility is anyway fungible, right? So we can move, or we can make tractors and crane at the same facility, right?
No, new facility is dedicated for construction equipment only.
Okay, the industry is already available in the existing plant.
Right, so current facility is Fungible, and new is, like, dedicated to cranes. Okay, okay, that explains a lot. Thanks a lot, sir.
Thank you, thank you.
If any investor have any questions, you can raise your hand.
We'll take the next question from the Dipanshu Suman.
Hello, sir.
Yeah?
Congratulations. I think, again, a good quarter on the tractor side, but on the crane, I think a little bit of slowdown is there in the market itself. So, I wanted to check, can you give me the number of cranes, what we have sold on a quarter-on-quarter basis for last four quarters, like, starting from last March to June, to September, to December. This last four quarters, what were the volume numbers for Crane?
Singla, do… are you having these figures?
Mr. Anshul Khadwalia: Please, please.
Yes Exactly, this number is readily available, 350 crane sir?
How much, sir? How much?
Mr. Anshul Khadwalia: 350 cranes sir?
Mr. Anshul Khadwalia: And the first quarter of this financial year, around 270 crane, sir.
Okay.
Mr. Anshul Khadwalia: And the second quarter is about 200 cranes and the third quarter is the 230, 230 crane, sir.
230 cranes. Okay. Okay, so that was for my part. Thank you.
Mr. Anshul Khadwalia: Thank you. Thank you.
So basically, they are saying that there is a complete curriculum.
We’ll take the next question from Pradyum Kothari.
Good evening, sir. So, as you like, the norms changing and the, the crane market now reviving. So, that's, that's, like, like good work from your side. Just I wanted to know that the new plan that you all have been mentioning about. So, like, have you taken debt on that, or is it from your own resources?
Secondly, does the company plan to, like, reduce their debt, or, like, what are the plans behind that? And please tell me the cash proposition of the company as well.
We, just for your knowledge, this money which we are investing in this crane, new, building the new crane facility. The land was already available with us, 30 acre additional land where we are putting the new plant. Okay, again, apart from 35 acres, the current facility.
On the 30-acre plant, the money which we are investing in this project, basically, plus 70 odd crore, this is… we have, raised in IPO. So, no borrowing is increased. This is, you can say, the IPO… Funds are being utilized there. And, as far as… The debt is concerned. Now, the company debt is, working capital only.
Around 85 crore, which we can use, depending on the requirement. But, what, term loans were there, which we have almost reduced, and I think in this financial end of closing of this financial year, Singlaji, what figure will be, I think, less than 10 crore?
Mr. Anshul Khadwalia: Around 7 to 8 crores, sir.
Around 7 to 8 crore will be left. This year, we'll be paying around 15 crore, almost 15 crore that, this, term loans we have repaid.
Mr. Anshul Khadwalia: So we will term loan, zero buy next year, sir.
Term loan will be zero by next year.
Okay, so thank you so much for answering the question.
We'll take the next question from Meet Mehta.
Hello, am I audible?
Yes.
So, sir, as we are targeting revenue of 800 crores for next year. And we are also targeting 12.5% to 13% of EBITDA margins for this year. So, what kind of margins we are targeting for next year, as we will be ramping up our newer capacity? And any guidance on PAT margins?
No, this, this, this EBITDA figure, which you are explaining, this is for the next financial year only, no? This is 26-27. And in that year, this new facility will also start.
After starting the facility, these kind of, you know, top-line figures, we are expecting.
Okay, any guidance on, PAT margins?
Is similar, under 100-150 points.
Mr. Anshul Khadwalia: margin is in the range of around 6.5 to 7 % sir.
6.5% to 7%.
Okay, okay. Thank you, sir, and congratulations on great set of results.
If any participant have any other question, then you can raise your hand.
We'll take the next question from, Anil Nahata.
Namaste Khadwaliaji, can you hear me?
How about you, Nahataji?
Absolutely fine, sir. Yeah, good to hear back from you and, sir, how are we looking at, sir, and quarter 4, sir? Quarter 3 was rather muted, and I unfortunately missed a bit of the earlier part of the discussion, so I'm sorry this question is repeated.
So, sir, what are forecast? Because, sir, nearly we are halfway through the quarter now. So, how does it look like?
Tractor, again, we are expecting around 50% growth in Tractor. In this quarter.
Hmm.
And the crane also, we are expecting some growth. Maybe around 10%. Overall, overall, overall, the top line growth will be, we are expecting 25%.
Understood, sir. Sir, last year, the quarter for crane was around 350. So, this quarter, are we thinking of reaching somewhere around that number, or it will be much lower?
Not, not much lower. We, we are, we are trying to… Had little more numbers than these numbers.
Okay, so you're trying to exceed 350.
Yeah, yes.
And similarly, on the crane side, I think then, sorry, tractor side, I think your target will be more than 1,000 numbers then?
No, no, it is last quarter, how many number I have and the figure I'm not having, but we are expecting around 50% growth.
Considering the last, past trend, yeah.
Okay, sir.
Okay, sir, thank you so much. Thank you. Thank you.
We'll take the next question from Kaushal Sharma.
Hello, am I audible?
Yes, yes, Sharma, yeah, please.
One follow-up question on our EBITDA margin. Sir, as we can see that our quarter on quarter EBITDA margin has fallen from, like, 16.12% to 12.77% from June 2024 to current quarter. So, what was the key reason of this fall in our EBITDA margin?
Because, primary reason is, we have recruited a lot of numbers, manpower, basically, for… especially for marketing. And that… that cost, because initially, for finding dealers, searching their new dealer, new partners, their little bit more spending has been done on the manpower front. So that has little affected. That is, I think, the main reason, and maybe we are going in some new market. So there we are offering little more competitive pricing, because in the market, the new for us, there we have given little more competitive pricing. Just to enter there.
over the period of next 3 to 4 years, what kind of normalized or sustainable EBITDA margin in our business? Because now we have spent all the marketing and employee manpower cost.
Yeah, yeah.
kind of normalized EBITDA margin for next 3 to 5 years? Would it be in the range of, like you said, 12.5% to 13%, or it will go back to 15% to 16%?
It will definitely go back, because I'll tell you, we have got a lot of backward integration. When the product is established in all the new zone, like we are established in north part of the country, then we can have… it'll be in line with the industry. Not less.
Okay, sir, thank you very much.
We'll take the next question from Pushkar Jain.
Hi, sir, in this, pick and carry, segment, what risks do you see, like, in terms of product acceptability, and what is the total capex that we have done in this, on this facility?
Total capex will be around… 70… Plus crore, 70-75 crore. And, as far as the product acceptance is concerned. Our product is accepted all… in all the sectors, in all the big corporate also.
So now it is… it’s only depend… because we have started the product, we are a new late entrant, we have given much better features comparable to the industry in the beginning. We were the first company to launch the air brake system.
Mr. Anshul Khadwalia: Because there was no air brake system earlier in the Hydra machines.
We have given the bigger boom heights. We have given the outriggers, which was not there in the industry in the hydra segment. So, we have tried to give much better features and competitive price. Oh, because.
Okay.
This thing, the acceptance of the product is very good. Therefore, we are the… we are the… one of the latest and trends, comparable to… to our two competitors. They are quite old in this business.
Still, our acceptance is everywhere. In defence, in railway, in all identity projects, we have bulletin, metros, everywhere, it is acceptable. A second Acceptance is not an issue, rather, it is a preferred machine.
Right, right. And so, from this facility, what is the peak revenue or, you know, peak number of units that you can produce, if you can give any idea? When… once it totally ramps up, like, the total peak capacity or total peak revenue.
Peak revenue from the crane business of the existing facility is a 350 number, which we have done in the last year, March. But…
No, no, no, the new, the new facility where we are…
The new facility will be very large. It is a 3,600 crane facility. We are putting Pick and carry crane. And there, we'll be making some, tower crane also. Tower crane facility also. Tower crane, we expect, up to,
1200… Tower crane Sorry, sorry, sorry, sorry, I'm wrong, I'm wrong. Not 1,200 tower cranes. It is a capacity of 240 tower cranes we can produce.
From that facility, around 240 we are expecting.
And 3,600, pick and carry crane. One average price it will take, because it will make a little bigger machine also. On around 25 lakh rupees.
On pick and carry crane, then you can calculate what kind of revenue can be generated with that plant. Balances, of course, depend on the marketing, how marketing catch up with that, production numbers And, in this, tower cane, in 240 tower crane.
The average selling price of Tower crane is around maybe 65 lakh rupees. 60 lakh, you can consider a safer side.
Okay.
This kind of revenue can be generated with that new unit.
So maybe close to, like, 1,000 crores peak revenue can be generated from the new…
Yes, yes, yes.
Thanks a lot, sir, thanks a lot.
We'll take the next question from Dolly Chaudhry.
Yes, ma'am?
had a follow-up question. So, like, as, when, can you just have a comparison drawn from our competitors in pricing terms in our, like, established markets, as, in comparison to the new markets that we are entering? What would be the price difference between our competitors and us?
Which product you are asking, ma'am? Tractor, okay, any?
Pick & carry crane.
Pick & carry crane.
Mr. Anshul Khadwalia: So, ma'am, the pricing is basically, on the same lines only. We are a North-based company, so therein south, there is an impact of freight cost. Which increases the price a little. But in general, ma'am, we are priced, at par with the competitors, you know, in certain models, so it is model-wise pricing. In certain models where we are offering maybe some better features.
Our pricing can be slightly higher, and in new markets where we have to, you know, seed our product, and for the entry purposes, maybe we can, you know, pitch our product at a slightly lower price than competition, and once we achieve a certain volume, then we can get it back to the normal routine price.
But, comparable to escorts, basically, we are giving.
Mr. Anshul Khadwalia: There are two companies which are working. So, sir, there is no… there is no direct fixed comparison, because, sir, each product has different, unique accessories and USPs.
Mr. Anshul Khadwalia: So, I can't, like, make a statement where I can say that my product is, in certain markets, we are selling, like, at a similar price than Escorts, but we are offering certain extra things to the customer.
So, so, like, if I do a tonnage-wise, like, comparison, still we can't compare, because some features are different.
Mr. Anshul Khadwalia: Yeah, the features are different, but we are… we are competitively priced when we compare ourselves to Escorts.
And, in respect to action construction?
Mr. Anshul Khadwalia: We can consider at par or maybe slightly lower when we are entering in new markets here.
Okay, but in established geographies, we are, we are, like, similar only, but in new geographies, we give, better pricing.
Mr. Anshul Khadwalia: Yes, yes, yes. Okay, thank you.
We'll take the next question from Rahul Gupta.
Hello? Hello, sir?
Yeah, Rahul.
Sir, you mentioned 25% sales growth. Is this year-on-year basis, or quarter-on- quarter basis for Q4?
Year-on-year basis, not quarter.
Year-on-year basis.
On behalf of Finportal, I would like to express our gratitude to the management team of Indo Farm Equipment Limited for taking the time to join us and provide such detailed responses to the questions. We also appreciate all the participants for their engagement.
If any questions remain unanswered, please feel free to reach out to us at the email IDs given in the chat box. (ir@finportalin.com, ir@indofarm.in)
Thank you, ma'am.
Mr. Anshul Khadwalia: Thank you, Ma’am.
You may now disconnect.