Mtar Technologies Ltd

“MTAR Technologies Limited Q4 & FY ‘2025

MTAR Technologies Limited

MTAR Technologies Limited

Notably, we have successfully executed proto units for various multinationals, and additionally we are also working on first articles for leading multinationals like Fluence, Weatherford, IAI, GE Healthcare, etc.. We have secured orders worth Rs. 720 crores in FY '25, for which Rs. 178 crores are from aerospace and defense which is a substantial improvement in this area and Rs. 349 crores of orders are from clean energy underlying our technological leadership in these sectors. In clean energy, we have delivered around Rs. 417 crores of revenues. The Company is presently working on increasing the wallet share with the customer in FY '26 that is going to boost the revenues further in the vertical. In fabrication, hydropower, and other segments, we look forward to deliver around Rs. 60 crores of orders this year. We have completed the execution of proto one for Fluence Energy and currently working on proto two and we are in discussion with Fluence for orders related to mass production. We look forward to growth in clean energy at the rate of 15% to 20% in this sector including fuel cells, hydropower, battery storage systems and others. The Aerospace and Defense sector has witnessed significant progress in several key projects to ISRO, DRDO and MNC Aerospace including the successful delivery of ammunition boxes, engine components for various customers including Thales, GKN, Elbit Systems. We delivered around Rs. 93 crores of orders in this division. Aerospace and defense sector is an exciting phase supported by Make in India tailwinds and strong export interest. We anticipate a phenomenal growth of 80% from this sector in FY '26. We have registered revenues of around Rs. 19 crores in Civil Nuclear sector in FY '25 as against Rs. 157 crores of closing orders. We are in advanced stage of executing nuclear orders currently and look forward to deliver around Rs. 60 crores of orders in this sector in FY '26. Kaiga 5 & 6 reactors orders have been placed on the private entity and we are expecting the orders soon as we are pre-qualified vendor for NPCIL. We started receiving tenders for refurbishment of reactors. In addition, we have also started working on budgetary quotes for 220 megawatts Bharat Modular Reactors. We recorded Rs. 148 crores revenue in products and other verticals, and we expect a 20% growth in this segment as well. The Company is actively working on increasing the product base and expanding the customer portfolio. We have achieved a significant improvement in operating cash flows by generating cash flows of Rs. 101.3 crores in FY '25 as against Rs. 57.4 crores in FY '24. In addition, we have reduced our net working capital days to 229 days. And we expect to improve our cash flows and net working capital days further over the coming quarters. Successful delivery of first article orders for various new products across all sectors underscores our execution capabilities and commitment to operational excellence. The Company continues (MTm Building Nation wltti Ex~lonal Engineering

MTAR Technologies Limited

to focus on quality, innovation, and process excellence to drive long-term shareholder value. We are optimistic about robust order inflows over the coming quarters that will strengthen our order book. Furthermore, we are in discussion with multiple customers in clean energy, oil and gas and aerospace sectors to enter into a long-term contracts. The Company has also entered into long- term contract with some of the few domestic companies for execution of Rs. 20 crores year-on- year over the next five years. Our consistent revenue growth over the past five years demonstrates sustained growth momentum and we remain confident in our ability to maintain this growth trajectory with an average growth of 25% year-on-year over the next three years due to multiple growth engines across various sectors. Our CFO – Mr. Gunneswara Rao, will discuss in detail about the Financial Performance for FY '25. Over to your, Mr. Gunneswara. Gunneswara Rao Pusarla: Thank you, Mr. Srinivas Reddy. And good morning and a warm welcome to our Earnings Call. I would like to extend my gratitude to all shareholders for your trust reposing on our Company. Today, I will be discussing key Financial Numbers for Q4 FY '25 and FY '25 on a consolidated basis. Coming to , Y-o-Y, revenue from operations stood at Rs. 183.1 crores in Q4 FY '25 as against Rs. 143 crores in Q4 FY '24 which resulted 28.1% increase. EBITDA reported at Rs. 34.2 crores in Q4 FY '25 as compared to Rs. 18.2 crores in Q4 FY '24, with an increase of 87.5% on Y-o-Y basis. Profit before tax stands at Rs. 18.6 crores in Q4 FY '25 as against Rs. 7.2 crores in Q4 FY '24, 159.6% increase on Y-o-Y. Profit after tax was at Rs. 13.7 crores in Q4 FY '25 as against Rs. 4.9 crores in Q4 FY '24, 182.7% increase Y-o-Y. When coming to yearly numbers in FY '25 versus FY'24, our revenue from operations stood at Rs. 676 crores in FY '25 as against Rs. 580.8 crores in FY '24, 16.4% increase in Y-o-Y. We would like to inform you that this is the highest-ever turnover in our Company we have achieved in FY '25. When it comes to EBITDA, reported at Rs. 120.9 crores in FY '25 as compared to Rs. 112.7 crores in FY '24, a 7.2% increase Y-o-Y. Profit before tax stands at Rs. 71.6 crores in FY '25 as against Rs. 73 crores in FY '24, a 2% decrease year-on-year. Profit after tax was at Rs. 52.9 crores in FY '25 as against Rs. 56.1 crores in FY '24, a 5.7% decrease Y-o-Y. I would like to also add key strategic focus areas: So, the Company has strengthened its financial position with a reduction of Rs. 15 crores long- term debt, bringing it down from Rs. 142.5 crores to Rs. 127 crores. So the total repayment (MTm Building Nation wltti Ex~lonal Engineering

MTAR Technologies Limited

obligation for FY '26 is at Rs. 46 crores. 80% of the long-term debt whatever we have we are repaying by FY '27. Balance will be in the next one-two years we are repaying. Cash flow from operations was robust at Rs. 101.3 crores for FY '25, improved compared to FY '24's total annual cash flow of Rs. 57.4 crores with our daily monitoring of the working capital and other focus areas. When it comes to working capital, the net working capital to revenue stood at 229 days in FY '25. And also, we would like to further try to reduce working capital for FY '26 to 200 days. So, like I also want to add, the Company is in the key sectors we are catering as on today. India's engineering sector is poised for growth driven by government initiatives promoting renewable energy, civil nuclear power, and defense indigenization. MTAR's diversified portfolio and engineering capabilities is well positioned to capitalize these opportunities. In civil nuclear domain, we have a clear visibility to support India's nuclear energy expansion to 100 gigawatts by 2047 with its new reactor approvals, retrofit programs of which five reactors are set for refurbishment, for which we are receiving enquiries from the customers. In aerospace and defense, we are seeing a positive outlook from our operations as explained by our MD, and in our new unit which was commissioned in FY'25 is set to witness exponential growth in line with government focus on self-reliant India and in defense and also the global procurements by Tier 1 and foreign OEMs. We have continued our engagement with major defense OEMs and PSUs by participating in Make in India defense tenders which are gaining traction with increasing budgetary allocations. Looking forward, the convergence of national priorities across clean energy, civil nuclear power and defense self-reliance is creating favorable environment for engineering companies like ours. So we remain committed to sustain EBITDA margins (+/-21%), and with 25% revenue growth in FY '26. So with this, I open the floor for discussion and welcome any questions if you may have. Thank you very much. Moderator: Thank you. Thank you very much. We will now begin the question-and-answer session. The first question is from the line of Vipraw Srivastava from Phillip Capital. Please go ahead. Vipraw Srivastava: Hi sir. Quickly on the guidance part, I missed the nuclear guidance, so what kind of growth are we expecting in the nuclear segment for FY '26? Srinivas Reddy: So, FY '26 is going to witness a substantial, yes, we closed the order book at Rs. 155 crores for nuclear, but it will witness a substantial inflow of orders during FY '26. One is, we have already received the tenders for the refurbishment of five reactors, a couple of reactors from Tarapur and (MTm Building Nation wltti Ex~lonal Engineering

MTAR Technologies Limited

MTAR Technologies Limited

about Rs. 9 crores to Rs. 10 cores of business in this sector. In FY '25, we have done Rs. 48 crores, especially with our new unit which was commissioned in Hyderabad. And then in FY '26 we will be looking at least about Rs. 145 cores of revenues being generated. So this is growing at a rapid pace. The main reason is, we are qualified and certified by a number of MNCs for exports in this area. And we have successfully executed various first articles now they have gone into the ramp-up production for these areas. And some of the customers where we have entered into a long-term agreement with IAI, we have now already started working on the first articles which will get converted into mass production as well. So, there is a substantial improvement in this area where the margin profile is also very good. So they are all very complicated kind of SMEs which we are working on and this is something which we are really excited about moving forward. Apart from this, we are also looking at various aerospace projects which we have been asked to work upon in terms of RFPs, which is not part of the discussion right now. So as and when we have some traction on those things, we will obviously inform all of you on that particular segment. Vipraw Srivastava: Right. And sir, last question from my end. Regarding Bloom Energy, sir what is the commentary from their end? Because Bloom has seen a lot of traction in the US, so what are they communicating to you regarding their order book and their growth prospects? Srinivas Reddy: No, it is more or less, see, what they have done is they have improved their wallet share also they want us to increase. So we are now doing additional assemblies for them within the system what we are making for them which we are going to start executing it from this quarter onwards, which will ramp up in the subsequent quarters. So, what we have mentioned about 4,000 units which we are going to dispatch to Bloom, with additional wallet share is what's going to happen this year. And there is no change in that. There might be further improvement on that, that we have to see. So ultimately the kind of guidance we have given in terms of growth and margins, we have factored every instance of what's external to the Company. For example, the tariffs issue which is going on with the United States, we have considered all those factors in arriving at this particular growth percentage. And we feel that because of our diversification into various countries and exports, we are in a position where we are still able to maintain that growth and achieve the margins that what I have mentioned, 21%plus/minus 100 basis points. And this we have considered all the factors, and any other factor which favors the Company then we will be able to improve much better on what we have said. Vipraw Srivastava: Sure, sir. Thank you. I will join back the queue. Thank you. Moderator: Thank you. The next question is from the line of Meet Jain from Motilal Oswal. Please go ahead. (MTm Building Nation wltti Ex~lonal Engineering

MTAR Technologies Limited

see. But post that, once the 90 days pause was released, then the situation became normal subsequent to that. But, we have considered all those things in the subsequent quarters. As I mentioned, we have factored everything which is external to us to achieve the growth and the EBITDA percentages. And what you will see here in the current year is, you will have a linear quarter-on-quarter growth throughout the year, and as well as the EBITDA margins. So, that's how it's going to be. And we are also working on reduction on outsourcing which we are getting qualified for the certain products. So, we have done that and we are in good shape to take the Company forward over the next three years in terms of our growth, and as well as the improvement in margins quarter-on-quarter and year-on-year basis. Meet Jain: Helpful. So, when we see other export heavy companies to US, we have seen a huge outflow in 4Q in the anticipation of this tariff. But when you say, in our case we are seeing a pause by some of the customers, so just wanted to get some more clarity because of the anticipation of tariffs the shipments from India to US have seen a massive increase across industries, so that has been the case for us as well, right? Srinivas Reddy: No, it is not the case. See, pause means there was not technically a pause, but there were few more shipments that could have taken, but not that it really affected us. Because there was a margin of Rs. 25 crores plus difference in terms of the revenue that we could have generated in additional, in terms of domestic and a few shipments in terms of export. So that's where it got deferred by a few days. Not that it is stopped, but post April 2nd again it continued and it's in the normal routine right now. So that's what it is. That's why I said that we have considered all this in the current year also, we have factored all these variables in our guidance for the current year as well. Meet Jain: Understood. In terms of our fuel cells, clean energy guidance, I did not get that one, can you just reiterate what kind of guidance are you giving for FY '26 for the fuel cells? Buildlng Nation with Exceptional Engi"leering

MTAR Technologies Limited

MTAR Technologies Limited

MTAR Technologies Limited

So, the requirements are very high, because we have designed and developed it along with the D&D naval area. So, we are expecting substantial volume production requirements coming in from that segment in the defense side of the business. And that's what we are doing, right? Every year we keep developing these products and you will see the traction happening subsequently in terms of volume production. So, our product development team is taking up such products where it makes really economic sense in terms of having that kind of volumes moving forward. So, whatever you are seeing in our presentation is relevant to volume production moving forward. So, those things as and when they happen, they will add on to our order book and the execution cycle, which we have not taken today, but it will definitely happen. Bala Murali Krishna: Okay. Lastly, on this Fluence Energy thing, there's no further update. Is there any progress on that deal? Srinivas Reddy: No, we have already mentioned about the updates. See, they have given us to do the prototypes. We have already done the first one. The second one is in progress, which we will most probably try to complete in this quarter. Once that is done, then we move on to the batch production and volume production. So that's what we are going to do. So, we have not considered any of that volume production or batch production in the current growth what we have taken, because we wanted to be relatively conservative in what guidance we give. But that's in the advanced stage of discussion in terms of not only the completion of the prototypes but also in terms of signing off the agreement which can happen this quarter or the next quarter moving forward. Bala Murali Krishna: Yes. I think as per our earlier discussion, I think when they receive any orders from India, so that we are going to execute it. So as of now, do they have any orders on hand from India for execution purposes? Srinivas Reddy: No, that situation has changed right now because what they are trying to do right now is that they are going to buy the pods, the entire assembly from us, and the batteries are going to be installed at the site. So now we are open to the whole market, so that's the big advantage. That's how they have changed their whole business outlook in terms of manufacturing in India. Bala Murali Krishna: Thanks a lot. That's all from my side. Moderator: Thank you. The next question is from the line of Utkarsh Maheshwari from Reliance General Insurance Company Limited. Please go ahead. Utkarsh Maheshwari: Good morning, sir. Srinivas Reddy: Yes, good morning. Utkarsh Maheshwari: Sir, just want to understand our medium-term perspective in terms of how we are guiding and how we are delivering, I mean, this is like on a very pretty consistent basis. (MTm Building Nation wltti Ex~lonal Engineering

MTAR Technologies Limited

Can you speak a little louder because we are not able to hear you. Utkarsh Maheshwari: Yes. My question is more from the structural thought process. I mean, from every time what we have guided, we have been running somehow short of our guidance. So this time do you think that our guidance is like almost at the lowest point of the thought process and maybe like we can outperform this? Srinivas Reddy: That's exactly the idea. See, what you have said is right, but what you have to also understand is that over the last few years we have guided, but over the last one year there was some misses in terms of guidance. But the current financial year we have ensured that we have given a situation of the worst case scenario where we stand in terms of various external and internal factors, and we have guided in such a manner. So, you can be rest assured that what we have guided for this financial year is what we will be able to achieve for sure. Utkarsh Maheshwari: And maybe like margins, I mean, we were thinking like 24% odd, now we are guiding 21%, so could this be the bottom? Or I mean we can expect some kind of outperformance from these margins? I mean, just want to understand the thought process. Srinivas Reddy: So that's what I said, we wanted to make sure that we are making every efforts to improve our operating margins and also our EBITDA margins. But we wanted to ensure that we guide in a manner that what we can definitely achieve. And probably if things go in the right direction, probably we will do better than this. But we do not want to say that right now. But this is a basic minimum guidance, what we have given is the basic minimum guidance. Utkarsh Maheshwari: Okay. Fair point. Thanks. That's it. Moderator: Thank you. The next question is from the line of Ayush Bansal from Niveshaay Investment Advisors. Please go ahead. Ayush Bansal: Hi. Good morning, sir. Srinivas Reddy: Good morning. Ayush Bansal: Sir, like I wanted to ask, we make actuators for Tejas aircraft, right? And with more focus on indigenization and government planning to add almost 300 Tejas aircrafts, so how big opportunity do we see here? And like out of the 36 Tejas aircrafts in operation currently, how many of it has actuators provided by MTAR? Srinivas Reddy: See, the electromechanical actuators we have supplied to the defense and they have actually tested it and they have performed very well. And in fact, they have also used our roller screws to test these EMAs, indigenous roller screws, and they also performed very well. They passed the load test, they passed all the relevant tests they did. So this is what I am saying, when you (MTm Building Nation wltti Ex~lonal Engineering

MTAR Technologies Limited

have developed the product, you can see the traction happening in terms of EMAs in a big way. And in fact, we had a series of meetings with them recently as well because of the certain emergency procurements we have been looking at. And we are looking at lots more EMAs which are going to come in the way of MTAR in the current financial year and the future year as well. So, when we talk about certain guidance, as I keep repeating, that we have not considered any of these opportunities which are already developed by MTAR but you still have to get those volume orders coming in from the defense sector, which will happen very shortly. So that is where we stand. So we have a great opportunity because we have already executed it. We have proven our product. So we are right on top of it to ensure that we can deliver such EMAs to the defense sector moving forward. Ayush Bansal: And sir, like who are the other competitors providing the similar product? And how much do we contribute to a single Tejas aircraft? Srinivas Reddy: We cannot quantify how much we contribute, but when we specifically talk about EMAs, our EMAs have proven the best in the market in terms of quality, in terms of performance. That has been also mentioned by the defense sector. And we are in good shape in terms of delivering the maximum requirements to the defense sector because ultimately, they detect the quality and the performance of the EMAs. Most of the EMAs we were also importing earlier, and that also we have changed the whole scenario right now, because of our capabilities to handle it. So we not only manufacture right from the basics, right from the component level to the assembly level, the entire system. So that's what we have done. So let's hope for the best in terms of getting the maximum kind of orders moving forward. Ayush Bansal: Okay, sir. And do you have any idea on LCOE of fuel cell versus solar? And how do you see demand for fuel cells shaping in the foreseeable times? Srinivas Reddy: No, there is enough demand. See, that's why we are able to grow at that rate, right? Four, five years back to what we are today, we have done a lot of innovations to make it from where we are right now. So it is growing at a rate of 20%, it might grow even further higher. So it all depends on how the market moves. But we are in good space as far as the fuel cells are concerned. Ayush Bansal: And sir, can you just comment what is the cost of a hot box? And how technically difficult component it is to make, like do you see high competition or something? Srinivas Reddy: I would not be able to comment on the numbers in the hot box, because we have been asked not to disclose that by the customer, because they have certain issues with that. But the entry barrier for manufacturing these systems, it's pretty long and it is not easy as well. So, it's not that competition can be created overnight. It is not going to happen that way. For MTAR itself it took number of years to develop it, and also to innovate various products that we have indigenized (MTm Building Nation wltti Ex~lonal Engineering

MTAR Technologies Limited

with. So that's where we are. So we are in a very good space as far as the fuel cell technology is concerned. Ayush Bansal: Okay, sir. Thank you. That's all. Srinivas Reddy: Thank you. Moderator: Thank you. The next question is from the line of Vipraw Srivastava from Phillip Capital. Please go ahead. Vipraw Srivastava: Thank you for allowing me for a follow-up. Sir, quickly on the recent bill which has come up in US, where they are revoking subsidies for solar. So any thoughts that does it impact MTAR and Bloom positively? And can it be a potential trigger for MTAR in the long run? Srinivas Reddy: I do not think so, because Bloom is in a very comfortable space right now in terms of their own order book and requirements. And we do not have any such information. And in fact, they are trying to increase their wallet share as well which we are doing right now, as I said earlier, Vipraw. So, I do not think we have any kind of asset or a trigger which might create an issue for us. So there is no indication of that. Vipraw Srivastava: Sure, sir. And sir, secondly, quickly on the Fluence part. So again, Fluence also supplies lithium- ion batteries for US market. And if US market faces issues, do you see it having a repercussion the India market? Or are these two embedded? Srinivas Reddy: No, see, right now, as I said earlier, we are creating assemblies for them, excluding the batteries for now. They are going to do that at site. So, that opens up the entire market. That's what Fluence is looking at. So, it's a new design up there, which we have designed and developed it along with them. We have successfully completed the first prototype, and now we are moving on to the second prototype. And once that is done, then we move on to the batch production and then the mass volume production as well. So, mostly, as I said earlier, the finalization of all this will happen either in this quarter or next quarter, where we are going to sign off a long-term agreement with them before we get on to the volume production. Vipraw Srivastava: Sure, sir. Thank you. Thanks a lot. Moderator: Thank you. The next question is from the line of Piyush Sevaldasani from Sundaram Alternates. Please go ahead. Piyush Sevaldasani: Yes, hi, sir. Thank you for the opportunity. Sir, my first question is on the clean energy, fuel cell side. Sir, if you look at the guidance of Bloom Energy, it's much higher relative to what we are guiding. So, can you help me understand why are we being conservative or we wait for more orders to come, and then we see an upgrade there? (MTm Building Nation wltti Ex~lonal Engineering

MTAR Technologies Limited

See, that's what I have said earlier. So, we have guided the growth as well as -- Moderator: Sorry to interrupt. Sir, there seems to be a disturbance in your line. Srinivas Reddy: Yes. Can you hear me now? Can you hear me now? Moderator: Yes, sir. Please go ahead. Yes, sir. Yes, sir. Srinivas Reddy: I think my line is fine actually. So, what I have said earlier is that we have considered the guidance of the numbers based on where we are today. But over the next one, two quarters, many things can happen, but we have not taken any of those into account. So, as of today, this is what we have done, this is what the guidance we have given as a base minimum. So, the reason why we have done that is that we would like to make sure that what guidance we give definitely we will achieve that, and probably we might do better than that based on a lot of external factors, nothing to do with us. So, a lot of good things are going to happen. For example, whether it's Bloom or whether it is Fluence Energy, where we are going to sign an agreement. We have not considered various things what we are already working upon. But as and when those things happen, then we look at it and then we keep informing our investors on a regular basis. So, that's the game plan for this year. Piyush Sevaldasani: Sure, sir. Sir, my second question is on the CapEx. We have done Rs. 100 crores CapEx for FY '25, can you help us understand what was this done for? And incrementally, how should we see CapEx moving which segments, and what would be the quantum? Srinivas Reddy: See, it depends. See, right now, this year the basic minimum bottleneck areas, we are looking at about Rs. 50 crores to Rs. 60 crores of CapEx going in. Not only for the requirements, not for this year, but for the next couple of years. But if you look at a specific project, like we are working on some very big projects which I am not able to disclose right now, but once those projects and agreements are signed, then it will be a separate CapEx required for that. We already have enough land banks, both near the airport, in the SEZ and a few other land banks that we have taken. So these will be used not only for our future projects and for expansion programs, which we have a roadmap over the next three to five years. Piyush Sevaldasani: Sure sir. Sir, just lastly on the nuclear segment, you said the execution in FY '25 was slightly on the weaker side. Can you help me understand why it was impacted? Was there any project delay or some clearance delays? And why are we expecting a jump to Rs. 60 crores in FY '26? Srinivas Reddy: See, basically, that's what we have dispatched, right? So, we are working on two major projects, one is the FMBC and the fuel transfer systems, which are the long-term projects. We have done substantial work in that, which is under work in projects. And we will be executing those projects (MTm Building Nation wltti Ex~lonal Engineering

MTAR Technologies Limited

for the current financial year. So, even though the sales are at Rs. 19 crores, we have done substantial work in these long-term projects over the last one year. And now we are going to move on to start dispatching them in the current year and the subsequent year. So, what orders we are going to receive, if it's substantial orders, we have not considered that in our business plan for this year. But you can see a nice exponential growth in nuclear division since everything is right there on our table right now in terms of order booking and execution will happen over the next three to four years. So, we are looking at a pretty good exponential growth in nuclear division, which obviously got delayed, right, in terms of order booking, because of the delays from various areas. But now, already the paperwork has started moving and we will be able to bring those orders over the next one, two quarters. Piyush Sevaldasani: Sure, sir. Thank you and all the best. Srinivas Reddy: Thank you. Moderator: Thank you. The next question is from the line of Balasubramanian from Arihant Capital. Please go ahead. Balasubramanian A: Good morning. Sir, earlier guidance of working capital days to a target of 175 days, what are the strategic initiatives we are taking it right now, because right now it's about 220 levels? Srinivas Reddy: GR, you want to answer it? Gunneswara Rao Pusarla: Yes. See, we have guided working capital days 225 days for FY '25. So we have achieved 229 days. 175 is a long-term goal, it cannot happen immediately Balasubramanian A: I was talking FY '27 targets, sir, I think. Gunneswara Rao Pusarla: Yes, FY '27. See, the moment we have the operating leverage and growth, we are expecting 25% year-on-year, and we are working closely on the receivables and inventory levels, definitely that number can be achievable. And we have the calculations also. Balasubramanian A: Got it, sir. Sir, in that Middle East side, oil and gas, especially DMT and CapEx are picking up. And how our businesses are doing in oil and gas, how the things are shaping up? Srinivas Reddy: So we are working with the oil and gas customer with Weatherford. We are going to execute the first article's completion in this quarter, the end of this quarter or beginning of next quarter. And mostly, a long-term agreement is going to be signed off, most probably in this quarter itself. And then we create the required infrastructure once the agreement is signed off for batch and volume production. So, that's going in the right direction. And that's something which we have not, again, (MTm Building Nation wltti Ex~lonal Engineering

MTAR Technologies Limited

stated in our business plan right now because that's how we have conservatively estimated our growth plan. So, as, and when it happens, we will inform the investors accordingly. Balasubramanian A: Sir, we have taken a separate debt for this oil and gas segment, Rs. 60 crores to Rs. 80 crores kind of debt? Or still we have not taken? Srinivas Reddy: No, we have not yet taken that debt. Balasubramanian A: Okay, sir. When we can expect plant for this oil and gas, sir? Srinivas Reddy: That's what I said, mostly in this quarter we will be able to sign off the agreement. And once we do that, then the whole process will start. Because we are simultaneously doing the first article, which will be done by end of this quarter. And once that is done, then we move on to the batch production within our existing facilities. But for volume production, we have to create a separate infrastructure for them for which we have the land bank. And once we do that, once we sign off the agreement, the whole kick-off will start off on the oil and gas, which will happen mostly in this quarter we will be able to sign off the agreement. Balasubramanian A: Got it, sir. Sir, my final question on aerospace and defense, I think we have initiated a development order for compression assemblies of scramjet engines. And so when can we expect volume orders for these hypersonic missile developments? Srinivas Reddy: No, first we have to execute these scramjet engines, we have to do that. We are in advanced stage of that. The raw material has come in, the manufacturing is going to commence. The sooner we do that, the whole team is working on it. So once we are able to do that, then progressively we will be able to see a proper traction in this area as well. And that's a very highly sophisticated order which we are executing in terms of scramjet. So let's see how it goes. And we are on top of that issue. The whole team is working on it, especially right from the new product development team and the execution teams are working on it to take it forward. Balasubramanian A: Got it, sir. Thank you. Moderator: Thank you. The next question is from the line of Isha Murthy from IM Capital. Please go ahead. Isha Murthy: Hello. Sir, can you provide me the guidance for clean energy, like civil nuclear power and aerospace and defense? And what are your plans to like improve your cash flows? Srinivas Reddy: So, the improvement of cash flows, I think GR, you want to answer that first, then I can go after that I guess? Gunneswara Rao Pusarla: once the revenues are increasing, profitability increasing, the internal accruals will be there. And also, we are working on the working capital days also, closely monitoring it. So, we have (MTm Building Nation wltti Ex~lonal Engineering

MTAR Technologies Limited

MTAR Technologies Limited

MTAR Technologies Limited