Company Disclosure

Financial Performance Highlights (H1 FY27)

  • Revenue from operations: ₹42.2 crores, representing 48.34% year-on-year growth
  • EBITDA: ₹9.95 crores, representing 47.62% year-on-year growth
  • Profit After Tax: ₹6.53 crores, representing 45.91% year-on-year growth
  • EBITDA Margin: 23% (improved from previous periods)

Business Updates and Strategic Positioning

Order Book Status:

  • Current order book stands at ₹77.42 crores as of latest reporting period
  • Expected execution: ₹65-70 crores to be executed before end of FY27 (March 2027)
  • Target revenue for FY27: Cross ₹100 crores

Sector Opportunities:

  • Defense indigenization creating opportunities for domestic engineering companies
  • Nuclear energy sector expansion - government targeting 100 GW nuclear capacity by 2047 (from current 8.8 GW)
  • Established presence in steel processing, oil and gas, and industrial testing sectors

Notable Contract:

  • ₹10.62 crores order from Nuclear Fuel Complex under Department of Atomic Energy
  • Working on 4-5 additional nuclear projects, some larger than the executed order
  • Expected timeline for new nuclear orders: 2 quarters for materialization due to government scrutiny processes

Operational Improvements

Margin Enhancement:

  • EBITDA margin improvement to 23% attributed to in-house manufacturing initiatives
  • Reduced outsourcing to vendor partners saving time, transportation, and vendor payouts
  • Management expects margins to remain sustainable at 20%+ levels in H2 FY27

Capacity Expansion:

  • Capex spending: Approximately ₹15-16 crores for FY27
  • Capex allocation: 60% for plant and machinery, 40% for factory building improvements
  • Focus on enhancing existing infrastructure including power and testing facilities

Geographic and Partnership Developments

European Opportunities:

  • European partners increasingly inclined to give more work to India due to energy crisis challenges
  • Working on 2-3 projects that were previously executed by European partners
  • Competitive pressure from Chinese competitors driving European collaboration

Business Mix and Growth Outlook

Sector Allocation:

  • Steel segment expected to maintain ~50% of revenue mix
  • NDT and nuclear sectors comprising the remaining 50%
  • Current order book composition: Nuclear and defense represents 4-5%, expected to increase

Growth Guidance:

  • Management confident of maintaining consistent growth pattern from previous years
  • Expects similar growth rate for FY28 as demonstrated from FY25 to FY27
  • Focus on disciplined working capital management and timely project execution

Technology and Capabilities

NDT Systems Expertise:

  • Non-destructive testing systems for inspecting critical components in industrial and defense applications
  • Applications across multiple sectors: defense, steel, electrical, powder metallurgy, refractory, automotive, and nuclear
  • Technical capabilities and customer qualifications creating meaningful entry barriers

Conference Call Participants

Management Team:

  • Mr. Ajay Longani - Managing Director
  • Mr. Hanshil Patel - Account Manager

Moderator:

  • Ms. Janhavi Patil - Orim Connect