Q2 18/19

Nov 2, 2018

Quarterly report

Ladies and gentlemen, good day, and welcome to the Terevani Durbines Limited Q2 and H1 FY19 earning conference call. 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. Please note that this conference is being recorded. I would now like to hand the conference over to mister from city Arabia. Thank you and over to you, sir. Thank you. Good day, everyone, and a warm welcome to all of you participating in the q 2 and h 1fy19 early this conference call for Traveini Turbine Limited. We have with us today on the call, Mister Drew Sowni, chairman and Managing Director, and mister Mikael Sommi, vice chairman and Managing Director, along with other members of the senior management team. Before we begin, I would like to mention that some statements made in today's discussion may be forward looking in nature, and a statement to this effect has been included in the invite which has been mailed to everybody earlier. I would also like to emphasize that while this call is open to all invited, It may not be broadcasted or reproduced in any form or manner. We will start this call with opening remarks from the management Following which, we will have an interactive question and answer session. I now invite Mr. Bruce Soni, to share some perspective with you with regard to the operations and outlook for the business. Over to you, sir. Good morning, Ashwed. Good morning, everybody. To the Q2 H1. Is that a call for FY19. We have a happy set of numbers to report. Our net income from operations at 3,900,000,000 is, due on a growth of 14%. In our VAT, it's also grown by 19% at 491,000,000. So turnover in the first half has been at a record high. But, equally encouraging is the 11% growth in order intake in the first half. A a a substantial initiative taken by the board was the buyback of shares of a $1,000,000,000 a $1,000,000,000 a 1,000,000,000 rupees So a tender offer that the price of a 150 to share of maximum 6,600,000 shares, which will be just over 2% to 100 this percent of the total paid up equity. And, the minor represents 22.53 percent and, 22.24 percent of the equity plus 3, reserves as for the last stand alone and consolidated banks, respectively. So let me just start off with the operations and, like to comment on the buyback and also take you through the outlook. In that. But during the quarter, turnover for the quarter was slightly almost the same as last year. But, if we really have always said, we must look at, cumulative results of the half year, which is what we had expected. The, turnover is 14% higher, and we expect, year end to be also clothing a much higher ticket than last year. The mix of exports has increased, from 48 to 57%. Which is encouraging. This is part of the order booking of FY18. And the aftermarket sales, the total sales is about the same at 27 versus 20, 98% last year. One of the things that has happened is during the first half of the, the domestic market has picked up. Pick up very well, one in terms of order intake and in terms of inquiries. And, this has been over of a lot of sectors. The address you call in the booking is that, has gone up 41%. Over the same period last year. But of course, again, last year was a little lumpy, but there is substantial traction in the domestic market. This is something that I've been talking about. We're expecting it. I said, I'd rather like to comment when we see the child rather than, when we expect to see the signs. Now, one, we've seen the reserves and 2 are confident of the domestic market in, in the 6 months and the next year. The overall consolidated order book, is at 7.8 It is higher than last year by 11%. And the So during the the last year under review, as I was talking about, the domestic market, which is improved. You know, we, have, to be we we attract all over. And in the 5 to 30 megawatt global market, in the first half of this calendar year, outside international sources have have put our our market share globally as number 2. So I think that's been a very substantial achievement, and, well recognized, internationally by, researchers. And, This is spread over a large number of sectors that I come to in a minute. But to check on the domestic market for a minute, we've maintained our 60% market share. And the insureds have come from, as I said, a variety which is capable for the Niagara cement. And also, biomass cup regeneration, maybe sugar. Eguiree generation is also from the sale sector. And we expect that to materialize both in order for the several parts of this financial year and going into Q1, Q2 of next year. So we are seeing a very good, active a dispatch program, for the next 12, 1 a half years or so at least, where it was now. The, segments that we've talked about are also to do. I I particularly like to mention infrastructure, which is picking up, steel and cement, domestically. And that's your role, from from what you're reading about the sectors in other companies. A lot of the orders are still under federation on the active stage. Which is why we expect the order of the 2324 to be quite good. In the aftermarket, domestic care. This is also shown, not abroad in order booking. And once the logo has improved, by 11%. Our order booking, you have significantly higher by about 20%. And so the total order order booking aftermarket, from the international market is now contributing almost 47% for the total aftermarket order book. The in the, services are sector, the refurbishment part is exceptionally good. And, it's showing very good visibility So we are looking at this, as a as a future potential growth accelerator. Both, my mainly demand are Internationally, which is good. And that's taken a long time, coming, but it's is our confidence between that and placing our our export, offices up. And, that's now seeing traction more in the aftermarket sector than in in in some places, some countries like in Africa and others where the economies are still under stress. The aftermarket is picking up more than the, product. Alright. To now turn to the export, During the, first quarter of the current financial year, we and this is, a lower, as I mentioned in the last call or the booking. But this has made this has been now made up well in the second quarter, which is sort of what I keep saying, that if you look at things cumulatively rather than going, a quarter to quarter. Now, again, we expect the same thing in in Q3, Q4. So if you look at the results, as it will be, at the end of the year, the international sector is doing well. But I must stress here that the international sector in the bar has been extremely stressed. So I think we've done exceptionally well when you look at our our competitors, our peers, and the various ranges in the power market. You've read results of many many others in this field, and, they they haven't been very encouraging. So keeping that in mind, I think our performance is even even stronger, and it's a great credit to the to the team. It's also credit to a a for a in 2, 3 years ago in moving internationally and taking the decision to incur the, capital and the personnel thoughts and and and moving forward. And we're gonna continue with these bushes. We're not really looking at at offering new fronts but we are consolidating our export bases and having them reach out further in the regions. And that's proving to be a very efficient, mechanism for order, booking and more more importantly, inquiry generation. We now have and daughters and destinations from all the seventy countries. And, we are focusing on about fiber to end your market. In the in the next 6 to 9 months. Very confident of some, breakthroughs here as well. The focus internationally is, biomass waste, waste to energy. There's some slowdown in combined cycle. And the oil and gas sector. But the inquiry base here has picked up very substantially, and you are aware of the international oil prices and which don't seem to be, coming down in the near future. So we expect good businesses from these, sectors. And this leads me on today. Is there any where the combined cycle is even more relevant. Because of the slowdown in the sector internationally, this has affected the order intake in the first half of this year, but we have, a extremely active pipeline, both domestically and international see in the 30 to 100 Megawatt, about 30 to 100 Megawatt, same turbine field. And we are confident of of the closure now before the end of the financial year. So that is also gonna give us a fill up for our performance in 1920. For for each year. So these are the owners that will be executed in this line. And I could just, talk on our buyback. We have, the board's considered this as a and a very efficient way of returning, returns to the shareholders. We have good confidence in our future order bookings and our growth. There is no problem with liquidity and we finished our our capital expenditure programs. So, these, have been the drivers, and, the the confidence that we have on the, future order bookings are both in the domestic and the export market. So we have identified risk also, and this is her helping us. And considering that we've achieved well in the toughest market, of the last 6, 9 months, and we expect the market to be better. We and we expect our market shares to be at least the same. We are, confident of, achieving better results. But it's a very important part of our, push in the last 6 months has been the achievement of substantial gains in the technical technology field. We've, hand a new series of, models and blades. And we've had them now, validated from the best organizations globally who who give it to the Farfya University of Milan and others. And their, validation is something that is very useful in terms of, order bookings in new sectors internationally. And in terms of our, further research program. So we now, feeling that we have both a technological sense as a marketing reach, to to pursue, the program of both products is and aftermarket sales globally. This technical program, is going to be further added, as I mentioned, because we're having in the first half, a first quarter of, the Q4 of this financial year, a, testing bench coming in. With the with the 3 megawatt diameter. And this is something that is a the very few, turbine companies have it in in Asia. And so we are both technically moving in the design field and self validation. We have very strong partnerships locally with the Indian Institute of Science, which is, encouraging for us and with the IRS. In in various parts of it here. The the outlook that I will be referring to is is is is good. And in fact, we expect to record here in our order booking, in the current, FY19. Expect FY 9 20. I wanna book you to be equally good, in terms of reach and growth because of the active inquiries. And the spread of the inquiries. The second, encouraging factor is that this is happening for many sectors. It's not just concentrated on one sector. So if some economy go up and down and we see that in one of our markets, that is Turkey, it's been compensated by others, but even we have managed to keep our market share in Turkey, quite good. The, new job see that we're looking at are both going to be in Asia and in Latin South America, and parts of Africa. The, consolidated porta booking position is is is with you. And, just like to highlight a few points that we've had an 11% growth in order booking as I mentioned earlier. And so our Closing order book now, is, 11% higher than it was at the same time last year. But the aftermarket gathering and contributed 22% growth over the last year. So with that, I'd like to, open the floor to questions. Thank you very much. Participants are requested to use answered while asking your questions. Ladies and gentlemen, we will wait for a moment while the question queue is send this. We will take the first question from the line of Anan Bovani from Unifi Capri. Please go ahead. For different quarters, can I see much higher and even for the excellent other information? This is the update. I'm so sorry to interrupt. Sir, please request you to use the handset. Otherwise speaking as there's a notice disturbance from your audio. Yeah. I don't have a Uh-uh. Yeah. So just wanted to understand. Other income wise, there's a sharp rise in H1. This year has compared to last year. So if you can comment on, a bit and help us understand if it is sustainable or if there's someone else in this class, Yeah. Yeah. You know, you you know, this is normally we follow intercompany in respect of our foreign exchange exposure. And we we remain very substantially hedged also. There there there had been some exposures which was not covered in the estate accounting because there are some requirements to be prepared. So this is, as a result of settlement and restatement of that. Please proceed with the following certificate. Okay, sir. This is, like, one of the engineers from looking to pay attention. And would I be the driver to think about it? Yes. And then all of the they're they're business related. And secondly, you can give me the fact that you can give me the fact that there'll be a depreciative very substantially, whatever hedging positions we are taking as of now, coupled with, forward exchange premium of 14.5% it's a better, much better position. It's about 4.5% on a dollar, it's about 8% on euro. Sure. Sure. And second question is, about our overall Uh-uh. I I don't want to get into figures, but, I I'm I'm giving you the because we know you're never sure when we order the Connecticut Achieve finalized. But, there's certainly be a much better, active inquiries and, so on the booking, we are we are confident we'll we'll be keeping up the pace of what we're done in in, in each one. Now, exact dispatches, well, of course, we we expect to hear to end much better than it was last year in terms of, turnover. Tell exactly what percentage is, and I wouldn't be able to to really comment on this now. Sure, sir. I'm sorry. In 19 when if I see, there's no built up inventory. So if you can comment on it, like, a number of days, inventory at the end of the 2019 is 200 days. I have compared to 185 you know, because we are a Capital Goods company, please don't, look at that. I don't know. This this this is by way July that turnover, which is going to come in Q3. And it is based on just the finish with inventory, which is to be dispatched, adjusted at the end of the quarter. And so very frankly, this is this is this is a matter of just uh-uh. Because there are orders that are, in hand with a particular order of our Gee, which, is to do with Gee. It was a combined cycle, plant. And we've talked about it earlier. But now, this is moving well. So we expected this batch in the current financial year. So you'll see a change, going forward, certainly by the end of the financial year. You know, mentioned that there's a delay in particular order and, and this is what I'm talking about. This is the one that's adding to it. Yes. Okay. And, sir, just a small request for our loan. We can wonderful day now for the deposited entity, in the and, auto booking sales Yeah. Well, actually, it's it's because it's really combined parts. There's only one part of the whole, geez or any. So we don't go into the same amount of detail, but we you can see we take and and what we talk about the future, we do take whatever we are expecting, needs to be need to achieve in terms of, forced turnover and in terms of for the booking. Okay. FY 'nineteen will be better than ever 'eighteen. Yes. Thank you. Next question is from the line of Anupam Khotsami from Smith. Please go ahead. Morning. Oh, hi. Good morning, sir. I'm just wondering, sir, to the government mandate. And if not, I mean, you see a lot of the screen being set up. What are your thoughts on that, how much of those existing numbers, street advancement. Okay? Well, I a good point. I had I had it actually in my opening remarks, but, you know, you brought it in. Yes, we are very much, it's very good to benefit us in two ways. One is that if, with the, with the movement of making ethanol from the heavy or assistance from King Duke, the mega saving is higher. So the demand generation capacities, the mega developer for cogeneration goes up and then, you know, you have more, capacity of turbine and more number of turbine possibilities. And the second is the dictionaries themselves have a, a power, a power requirement in which they, some of them are able to win to the to the grant. So it's a, but this will come in in in in 1920. You know, by the time these distilleries, I get all the permissions and the environment, the clearances, etcetera, that there are any group itself that's putting up some. So, it's it's a very encouraging time for 3 d turbine. Makes sense. So the order will start to come in within 1920 years. Okay? Well, it might sound a little bit this year, but, mainly next year. Okay. Okay. Thank you, sir. And, so could you repeat your market share, in the international market and also the aftermarket, I kind of missed that? No. You see, aftermarket is always impossible to get the total market. It's very difficult globally with their local players and their OEMs, and the third party that I got, who do work on other OEMs. So there's no data flow captured in that way. Both domestically or Internationally, especially. Same, is the situation in the product line, while we may I said we bought on, our, that we are with Ecalantas, it's difficult to really talk about market share because many things are not supported. Now you're not you're looking at, 70 5, 80 countries. So it's, it's not something we can we we are more sure of talking about the domestic where we know all the way. I understand, sir. But, sir, if you are if you take a different industry, you just want to take this you know, have an idea on the whichever portion of your revenues comes from which industry. If you can share that budget on? No. We don't get the split up. I'm giving you the spread of the industry because actually it's not important because these shifts from the air from from time to time and quarter to quarter. So, we actually have an approach of having a risk mitigation strategy where we really concentrate on all. So what I mean, looking at this mix and looking at our strength is what gives me the confidence of telling you about the record of order booking potential for the current year. And what we see is for an order booking in in 1920 as well. So today, we are in a in a pretty good growth path, something that, inquiry wise and all was was, scenario 3, 4 years ago, in the domestic market where we were not very much interested. So, it's, it's good days. I understand. Thank you so much. Thank you. Thank you. Next question is from the line of Katitian from Sidra Mutual Fund. Please go ahead. Sir. My question is with regard to, when it's, like, a short time in the power market, we are seeing spikes, in the energy scene markets and come there. Are the inquiries including on the industrial power side to put up more capital on the domestic market? And, it's a thing that's, like, it's put, are there any weakness, because the mistake of we are seeing the press release that we have a drone significantly, It's not, what is, gender in our growth path, sir? No. Please, sir, understand that are brought in the international market has actually been quite exceptional given the fact that the market internationally was under tremendous strength, and you know, from all the way from, 500 megawatts down to our 5 megawatts, in the in the same turbine market. So we've heard quite very well, Now, we we we don't, our growth in the international market. It'll be a new market. It's a new sectors, and also, pushing, the, range of products with new technologies. So this is what is bringing our growth. Market projections are difficult again on a global basis. Domestic, we're able to see much better visibility in where we are going, and that is where we are saying that we receive a domestic market now, which is actually delivered alerts to us in the first half. And going forward, Is that encouraging? Principally, on the export side, we, focus on, the renewable sector, which is biomass based independent power producers, just the sugar market as well as, which is one of our most most important markets is the waste to energy and the solid municipal waste incineration market, which all of them actually have, a very dependent on funding availability And so while the stress in that in that credit market is sort sort of gs, we see that improving, but it's a very consistent demand from this segment. It changes geographies here to here and quarter to quarter, but we think that we're in a good space there. And we have very, very good credentials. We have very good market that specific space. And, we're quite confident of growing quite well. I and as a fun fact here is that the renewable market is not really going now. I'm sure that's that's coming internationally is on a conventional bar. And so the move is 1, the renewables. The second is, on the environmental controls for fuel oil and service and then it's for a rate, is a is a big factor over the world, not just in the developed world. And and, lastly, our technology and our position already in in both the domestic and international market, for these sectors, our products, microphone plate. Sir, but can we look the buyback quantum, uh-uh, like, sir, it will keep us in a electrician. Right, sir? So, like, Tell me, what is the last time for the buyback, sir? I think, as I mentioned here, I hope your market is the most beneficial way of return to the shareholders. We don't have any, liquidity or, CapEx, aspirations anymore. And we're confident of the order booking and the position in 19 20. So these are the drivers. Okay. Okay. But, sir, we could have done to, like, open market, but you're The board says that this was an appropriate way to actually, go through the process of pandemic. Okay, sir. Okay. The first question, like, are we seeing improvement in the industrial power requirement, sir, or in the, the listed process? Yes. Yes. As I mentioned, it's in the is, are are seeing requests are seeing the requirements rise in terms of capacity utilization, not only in terms of order booking, but also in the inquiry book. So we do see, such as cement paper, steel have very strongly there. We see now a strong uptake in the Distillery And Print Agroprocessing market. In in general, the the the overall inquiry intake even for the quarter is up by nearly 70, 75% over the previous year. So this it's it is encouraging. Even though the factors that you have to remember that over the course of the last several years that the market in India has declined substantially, even if we look at very large increases, we still, need a couple of years for us to get back to other areas. Thank you, sir. But domestic is, like, for the pricing slightly also including some, well, or the pricing condition is priced here. Okay. Okay. But we will benefit because of the operating leverage, our business will Our expenses would be a mortgage or, an Absa driven vehicle? Exactly. I'll go ahead with you, sir. Good, customer base. So we have a good customer base. We have a good track record. So that's what we are encourage with. Sure, sir. Thanks, sir. Thanks a lot, sir. I'll just follow-up with each other. Thank you. Next question is from the line of Bhaskar Jhatri from Entras. Please go ahead. Yeah. Hi. So how do you plan on funding the buyback? We have the liquidity. We already have a you know, the I'll ask her to I think we hold current investments of about 75 crores of now. And with the kind of a team in collection forecast, probably have. I think we are very completely busy. Okay. I got it. And, how much, free cash flow, ma'am, are you targeting to to do for the full year? You know, looking at the fact that we do not have any capital expenditure program. So, basically, whatever is the internal accrue accrue which come come in, they form a part of the free cash flow itself. No. Yeah. I I am. So so do you have a number to that? Look at it. It's more than sufficient for the for, yeah, for all plans that have been disclosed by the board, including my bank. Okay. Okay. And, you know, just a related question, you said there are no CapEx plan as of now. Then how does one look at you know, I mean, utilization, if that's the correct word. I mean, what's what's the yeah. That's a good point. In the previous conference calls, I had mentioned to you that the, you know, in in our business, the CapEx, located to at low cost, quite substantially capacity, enhancement. Because the vaccine announcements comes in really through, your base, factory where you do the assembly and and testing. And, also, supplier base. So we spent over 2 hundred calls. So we have enough capacity today for, like, action of maybe, you know, 30, 35 percent of, for for many years, we we have no requirements of any, any any anything CapEx to to fulfill orders. Mhmm. So we've done 6 and we've done very major. We've put up a new country, so for us, which is state of the art globally. So all the machinery that is there is actually, top quality today from the best manufacturers globally again. And they're all working and they're all tested. They're all producing. So now one can confidently say that because there's been an operation now for the last year. Okay. Sure. Thanks. Thank you. Before we take the next question, I would like to remind participants. Follow as we have people waiting for the job. We will take the next question from the line of from Ravi Swaminathan from Spark Capital. Please go ahead. Sir, thanks for taking my question. I just wanted to know what is the current domestic market size in megawatt terms and what it was last there at the same point of time. Between 0 to 30 30 to 100 megawatts. I'll I I I don't have that figure, but you could get it from, I haven't provide the comparative figures of the debit question. We'd like to simulate that, Could you get in touch with us? We can give it offline. We'll we'll we'll get this sent to you. Sure, sir. And in terms of inquiries, you've mentioned that has improved. So, how many gigawatts of inquiries are there currently in the domestic and the international markets? Same, if you can do the comparison compared to last year also, even ballpark numbers would be fine, sir. We we we maintained the inquiry book because, you know, I in the domestic market in the tune of around 1.5 to 1.7 gigawatts. And internationally, our inquiry book is still solid, in the range of more than two and a half kilowatts. Okay. And how was your previous year, sir? It is more or less, you know, it's it's a growth, but it's not a quantum growth, but it definitely improved the from one point, 2 to 3 from the one point but but you see the difference is if you look at the numbers, they don't tell you the story. Because there are lots of people who put in mandatory course and don't do anything about it for a year or 2 years, but it's put in as an inquiry because you actually send them an offer. Now a much higher percentage is becoming, one very active and substantially active. As you know, these are part of projects and they're dependent on the projects kicking off, which is not fairly only on our our supplies, from their experiences and their findings and all. So the percentages of what we call, collection, human quality, commitment, And, the active inquiries is is is much better now. Okay, sir. Sir, and in terms of, exports, sir, so you had mentioned that there is kind of a global weakness in terms of the dimensional power. I mean, there is a kind of, say mismatch given the fact that global economies on a recovery part and some of the major economies are doing well, I mean, we just wanted to know your sense as to why mean, the, major markets are growing, still there is a demand weakness, for, both conventional and, the revenue will power also. No. It stands from credit availability for the sector. The fact is that, that biomass has replaced and renewable projects have credit available credit is not available for coal based projects, and it is driven by, large adoption to, the Paris climate accord, etcetera. Bother than that is is is our sector, which is industrial power generation, uh-uh, is is dependent on capacity utilization at that the industrial level is quite sufficiently undervalued lies in the developed world. In developing countries, we do find demand in something that we're approaching quite aggressively. And we believe that, while order booking, in this global market, for for was may have been subdued. Going forward, there is, like, you rightly say, a greater appreciation for certain more just to come through because there seems to be a better growth in the market. Okay. So, it's more a function of, just like how this is happening in India. That is the steel cement and other, industries of the world, there there is a lower capacity utilization because of which its spread of growth in the market, the orders are not participating as of now. But it's likely to improve. So it's my understanding, right, in that sense, sir? I think I think I think that it you're you're right. It's difficult to generalize that statement, but in certain pockets are completely to be honest. But I can see that the when I talked about stress, I meant the market even in large So where so where you, you see that affected the total pharma in going up to whatever, 1000 megawatts, etcetera. And and, around that market, it is not so relevant to us even for, so many car miles or days of any because we're very limited to the industrial power and not the utility market. And, the the factor there are really in our favor. That's, the outcome that is acting globally, whether it happens in the cloud and power market or not, it's actually happening in the industrial market. Okay, sir. And, in our exports, how much it would be, your conventional and the renewables or it will be majorly renewable be, dependent on export market. How how would you be shipping? Person. That is the focus, and that is the fact. Okay, sir. And last question, bookkeeping question. G is remaining order book revenue back for the first half of the year, they will be renewed. You know, I think the the the revenue and Pat have been mentioning the investor brief, the order book the closing order book of, G Srinis 162 crores. Okay, sir. Yeah. Thanks a lot. Thank you. Next question is from the line of Amin Pavani from Unifi Capital. Please go ahead. Thank you for the opportunity. Thank you for the opportunity again. I just wanted to understand our gross margins. In advance. Was there any impact due to raw material price increases? No. You see what happens is that we we as you know, we have, 2 basic, segments, which is product and aftermarket. And of course, the the amount that it changes would change your gross margin, but it it it would normalize to the end by the end of the year. So, essentially, the fact is that we believe that this current year would would would have a better margin than last year would have a higher turnover than last year. And so that is the way that you should look at it it would normalize at the end. Would you say that? Okay. And, sir, in terms of our the response, I mean, is everything written to be, am I correct in my understanding? No. No. No. He's the substantial amount is billed in in foreign currency. That's why we, as mentioned earlier in the call, We have hedged, and we've hedged now, going forward, as we mentioned about our forward rates of 4 and a half on the dollar and 8 on the euro, So that's the, that's the substantial lockdown, and that's something that's been, therefore, in the past as well. So it's not something today. So major revenues are in foreign currency to export. Only some to the Indian EPCs are a repeat. I'm sorry. Any margin difference between, Indian and, export level? In the past, Indian exports, yes, quite substantial. So it says our exports have increased to 50% in Xfinity. You can't just look at these things. They it's it's it's all very lumpy. So once a generalized statement on margins being higher, but if you see the the year as a whole, I think. No. If you look at the H1 versus H1, do you see it at the net margin level? We have a growth of more than 2%. From 17% last year to 19.2% this year. Sir, but that's another income, everyone. So I was actually amounting, which is 19.4400 and excellent. It was a 19.1% for point 3% increase, whereas the long term exports, it's quite easy, and it has, now, exported 53,000,000 rand 48% last year. So all you can tell me, what's the margin difference ballpark? Is it a 5% margin difference or 77 or 3%? I need to move on to that. Okay. We answered the question on the other income. So you really have to take that into account when you're looking at the margin difference. Even in any case, when you're calling ethical thing, So whatever are your MDM gains, losses, etcetera, they all form part of the revenue. So, basically, everything on foreign exchange gains. It's a try. It's nothing but a part of the revenue itself. Okay. Yeah. That's very helpful. And lastly, I wanted to understand, the buyback price, 450. And I wanted to write that. This is a board considered this matter and looking at the, training and the potential and the company, yeah, feelings of the future, and they're confident that we have in the Philippines. And, they feel this is an adequate return to the Shell? Sure, sir. Thank you very much. Thank you. Before we take the next question, I would like to remind participants again. Please limit your question to 2 per participant only. We need to take the next question from the line of Abhishek Kala from Brytevant Securities. Please go ahead. Hello, sir? Thank you for the opportunity. My question is regarding the market segment of 30 to 100 megawatts. So what is the market situation previously and our outlook in this segment going forward. And the order book portion, we have already shared through that answer. Yeah. Well, as I said, the market position going forward, is much better. We have a good suite of inquiries, and, in, which have become active So both Internationally and domestically, the order booking potential, which is for FY19, the balance of this year. Is better than what it has been in the first half. And fixed and and and definitely for 1920. Okay. Are we under This is, to answer your question specifically, I'm gonna apply both diversity and entertainment. So what would be the market size previously? 2 or 3 years back? Oh, it and the PC was very high, but the last 2 years, it was hovering around 200 dot megawatts per annum. That's okay. Yeah. That was okay. 200 megawatts for, domestically and on the exposed side. We don't know the data. It's much much larger. Yeah. That is that is not something that, the question which is there. So it is, more towards the domestic market or export on the export side. Audible transport. It's 100% for exports. Not 100% is majority I got it. It's good. I'm gonna take 5 years in any direction in this fund. Yes. As I mentioned, we are going to action in the inquiry. I took this very much. Okay. Okay. Thank you so much. Thank you. Thank you. Next question is from the line of Bravan Parekh from Renaissance Investment. Please go ahead. So if I'm off late, we'll we'll currently have seen a lot of volatility. And, if that continues, do you think that is a risk to the a record order in flows, you know, view that you have and what could be at the potential risk to this outlook? No. We we because we, 1, we follow, a fairly hedged policy in our, policy management, We don't, sir. I understand that, in when when there's volatility in currency and all of the orders go on hold. Correct. For the the you're right. In some countries, like, I said, we have had more maternity than others. But because we have a very diversified, market in terms of the 17 over 70 countries and various sectors, certain projects have to go forward and then solve, the difference we recently got an order for from Kentucky where the currently depreciated very substantially by 30, 40%. And I thought I had to go forward. Any other things that you foresee to this outlook? We don't at all because the the the risk mitigating factor is too One is that we are in the right sector, mainly the renewables, internationally. And secondly, we have a diverse but, business segment and geographical spread. Okay. Okay. And, sir, the opening remarks, you had mentioned that there's some slowdown in combined second order in the international market. There was. Now it's picking up. That it was in the past. For the last 9 months or 1 year. If we did not see traction again, this is why we have gone. And why you want me to go down, sir? Any that's a a bigger question on the, combined cycle, as you know, is gas and and it's, ball with, are the other players of GED Team Mitsubishi? Okay. Okay. Great, sir. Thank you, and all the best. Thank you. Next question is from the line of Ashita from EDubishi. Please go ahead. Hi, sir. Thank you for the opportunity. Thank you. Yeah. So my question is related to the CPP market. Am I basically. What will be the current size and how do we expect this market to grow over the next 1 to 2 years? Which market? Which market? I didn't get this. This is the captive power plant market. Okay. No. As I said, you see, 1, it's, hacking across the sectors from, to It will pay for the to the cement and the food and, steam. So it's across the sectors. You know, all these places having captive power. So when the projects are coming up or they're expanding or there's a lot of brownfield and lots of, unutilized capacity is being is is in our streamlined, large capacities. So we are seeing just not just in the infrastructure, like, as I mentioned, But in the other sectors, you know, look into how the series and the boom the way to boom in the next 1 year. So they are the same thing you you already are covering, steel and cementing. So you know what's happening in those sectors. Alright, sir. So second is just a bookkeeping question. What will be the quantum of the ForEx gain which was recognized in Q2? On translation? Yeah. Thank you. Next question is from the line of Manish Kohl from Henam Holding. Please go ahead. On industrial segment, like you mentioned that steel and cement is seeing recovery. So like in 2012 when the markets were quite from the the contribution of this particular segment was quite large. So if you can give more sense as to how big is demand emerging and as mentioned by previous speaker also in terms of captive power, we are probably are you seeing the requirement coming from process and and other things. And and second related question in terms of what is the current revenue contribution coming from this particular segment, industrial segment, and how do you see this growing? We're extremely positive. When it comes back to the 1213 levels, of course, we we under capacity. So we'll be even more settled. The between what it seemed to action, started in the first half of the year. Now, I would like to really even internally look at that more when we get the orders in Q3 and Q4, looking at, yeah, FY1920. But we have put in a fairly optimistic scenario for contributions from this sector, going forward in the next 6 to 9 months. And that's going into financially as of yet. And that quickly, because of the strength of the discussions that customers are having with us, on their projects. Yeah. Specifically, the industrial project that you're talking about. Okay. But any sense as to these particular segments, how much would be the revenue contribution? Just to get a sense that what kind of delta it can provide in the coming year? To give you an idea, I think, these sectors that you're talking about are largely based on coal based or or or non renewable based power generation systems. Right? And what we and and so and so what you find is that the growth in the in in in that market, could could I I would imagine maybe double the the the the outstanding query book that, that that, that we need to balance. Marni, just to add one point, the inquiry books, you know, the sectors, what we discussed about particularly in the infrastructure, like, teams. And then we we are seeing some traction. And if you look at our inquiry for the domestic market, we have close to 20% of the inquiry which was almost nil a year back. So we have seen a lot of disability from the inquiring standpoint, which we believe that will be converted Okay. And maybe we would probably in our revenue, this number 15, 20% maybe revenue contribution from, industrial segment. Okay. Oh, okay. Fine. Thank you so much. Take care. Thank you. Next question is from the line of Ganeshi from BNP Securities. Please go ahead. Yeah. Good morning, sir. Thank you for the opportunity. So I have two questions. In international markets, which are the key con countries that the contributed to the inquiry flow currently? No. It's it's it's it's spread all over. You know, Tarcam, but can't you go out? It's from, from, Southeast Asia. We have a hair reliable and parts of, Africa and and and, the Middle East Vienna, North Africa. We are also seeing traction in in in in Europe. But, but I also, the top reason is, pretty good. So, actually, you know, if you look at this, I'm I'm covering, probably not to make a pronounce is a little less, but otherwise, the rest of his Sally evening spread. Less than Europe. Less than Europe. Indeed. The growth is less than Europe because that market is intensive. Mhmm. And, sir, out of this list that you gave, where do you see the sharpest delta in terms of, you know, pickup in inquiry? That's that's that's, it's spread across many sectors and many countries. Okay. I'm giving you a broad spread of where it may be in where it may have when it is. But, fortunately for us, it's free. So I don't have one of the 2 APACs. I mean, that's all substantial to send out. Sure. Sure. And, sir, my second question is, when we decide to enter a new international market, usually, what are the key variables that go into deciding, you know, which market to enter and when? And, generally, what is the time and cost involved in breaking into a new market? But now, for example, we've already done that 2 years ago. So it's very fairly hypothetical. We're not looking at opening new. We've already covered seventy five countries with us friend of of this that are present, but it's another not something that we're considering now. So it actually was something that was there 2, 3 years ago. And it's born fruit. So it's it's academic. Okay. Okay. So incrementally, we are not looking at adding too many countries. We don't need to, but these offices are good enough for us catering to, surrounding regions there. Sure. Sure. Thank you so much, sir. And best of luck. Thank you. Next question is from the line of Shuman Jain from Unifi Gapti. Please go ahead. Thank you for the opportunity. So I just wanted to understand what was the best in class which is in April last year versus April this year? Well, you know, capacity utilization and steam turbine is, is not, very relevant at all. And I'm saying we have state capacity, what really, very presented, Dave, if you don't if if you found a child on the P and L much, So it's really not something that is a big determinant. And secondly, you are not just capacity of We have a lot of good partners and subcontractors and and and bought out a good one. So we we'd have to consider all that if you look at the whole sales, of what our products are and their capacity utilization. So that's not really a determinant. But you could say that capacity utilization is is improved, but there's vast potential. It can be, sir, in terms of currency benefit, that we'll now be having an export for fresh water. Would it be would we I think the benefits, to the customer, or would we be returning internally? Hello. This is a customized product, and it is every every pricing of a product is uniquely done. It would be difficult to imagine that all the currency benefit can be captured by the company. I think it's unique, and they told Kenneth, congratulations on how you call each other. So it's difficult to forecast, but we think that we will benefit as a company. I'll I'll go through the perspective on the short term as well as long and medium term for the term, the disability replacement. What are the margin difference between exports and domestic market percentage, 50¢, 45¢. We don't go into those figures, but, say, the exports are, better deposited. And lastly, sir, I ordered for a GTL was or pending, can you give a ballpark a sense of what the size of order? No. No. As I said, we have the these are actually quite incoming about I have been giving the order on hand, but it's just to say that we expect them some to close before the end of the financial year. So in the opening remarks and in the press release, it was mentioned that an order is just pending for delivery that's a particular one for the customer. I think you can, let's leave it at that rather than going into the it can be it will be dispatched in the current care. Part of the it's it's it's part of the event. Okay. So are you saying it's not possible to share? No. Not really. Okay. Thank you, sir. Thank you. Thank you. My ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to the management for their closing comments. Thank you very much, everybody, and thank you for joining in. I'd like to just end by saying that, today, We're poised at a very, very unique time. We've, had a a record, H1, and we're looking forward to further record in the future. Based on our, active order books, domestically, and, by Internationally, and the product line that we've we've we've established technologically, it's stated to the to the to this market of, of 18, 19, and 19, 20. I will look forward to a great 18 months ahead. Thank you. Thank you very much. Ladies and gentlemen, on behalf of Sigrani Turbine Limited. We conclude today's conference. Thank you all for joining us. You may disconnect your lines, ma'am.