Please note that this conference is being recorded. I now hand the conference over to Mr. Rishab Barar of CDR India. Thank you, and over to you, sir.
Good day, everyone, and a warm welcome to all of you participating in the Q4 and FY 2024 earnings conference call of Triveni Turbine Limited. We have with us today on the call Mr. Nikhil Sawhney, Vice Chairman and Managing Director; Mr. Arun Mote, Executive Director; Mr. S.N. Prasad, Chief Executive Officer; Mr. Sachin Parab, Chief Operating Officer; Mr. Lalit Agarwal, CFO; Ms. Surabhi Chandna, Head of Investor Relations and Value Creation, 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 was mailed to everybody earlier. I would like to emphasize that while this call is open to all invitees, 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 request Mr. Nikhil Sawhney and Mr. Arun Mote to share some perspectives with you with regard to the operations and outlooks for the business. Over to you, Mr. Sawhney.
Thank you very much, Rishab. A very good afternoon, ladies and gentlemen, to the Q4 FY 2024 investor call. Firstly, it's with pleasure that I, that I report the record performance that Triveni Turbine has had in the quarter and the year ended 31st of March 2024. We achieved the highest ever annual revenue, EBITDA, and order booking in FY 2024, as well as a record closing order books, providing very good visibility set for the coming financial year. Order booking for financial year FY 2024 was INR 18.78 billion, an increase of 17% year-over-year, while revenues for the same year came in at INR 16.54 billion, which was 33% higher year-over-year. The revenue growth is well-rounded and driven by strong performances across all our businesses, segments, as well as geographies.
The board of directors has also recommended a payment of a final dividend of 130%, which is INR 1.3 per INR 1 share, for the financial year 2023-2024, which is subject to the approval of shareholders. This is in addition to the interim and special dividend of 230%, which is INR 2.3, which was declared and paid for already in this financial year. For the quarter, the revenues from operations grew 24% to INR 4.58 billion and was the highest ever achieved in a quarter. EBITDA was also higher by 36% to INR 1.07 billion, while PBT exceeded INR 1 billion for the first time in the fourth quarter of 2024.
Profit after tax grew by 37% year-over-year to INR 762 million, and this was with an export order booking, which grew by 29% in the current quarter. Order booking for the quarter was lower than at the same quarter of the previous year, and this is due to a variety of reasons, which we will go into later during the conversations. Inquiries also, at the same time, for the quarter ended, were slightly lower than at the same period of the last year, though, having said that, it is sufficiently higher than what our annual intake of inquiries would be. Domestic market inquiries remain robust, though there are certain constraints on finalization of orders, which is due to a variety of reasons, including the elections.
For the full year, revenues in FY 2024 grew by 33% of the previous year to reach a record level of INR 16.54 billion, while domestic and export revenues grew healthily at 28% and 38% respectively. Export growth was backed by our order booking in the previous financial year, which is also driven by the initiatives and efforts that the company has made in terms of expanding its presence overseas and becoming more locally present. The product and aftermarket revenues also showed a robust growth of 33% and 31% respectively. Our record order booking of the financial year of INR 18.78 billion was higher by 17%, which is driven by all segments, which is export as well as aftermarket, much, more than the domestic market and products.
PAT for the year ended was at INR 2.6869 billion, which is an increase of 40% year-over-year. Our outstanding consolidated order booking position was at a record INR 15.53 billion, as I've already said, which is 17% higher year-over-year. Investments, including cash, stood at INR 8.83 billion, which is an increase of 32% over March 31, 2023, which is driven by higher profitability, an increase in negative working cash, and more customer advances. On the product side, order booking has increased by 10% year-over-year to reach an all-time high of INR 12.61 billion, and the key growth drivers continue to be the areas of renewable energy power generation, industrial cogeneration, as well as API and other both power and drive turbines.
The aftermarket segment has also scaled new heights with the annual order booking turnover crossing the INR 6 billion mark and turnover crossing the INR 5 billion mark for the first time. The segment witnessed a significant influx of new orders combined with repeat orders, further strengthening the company's already diversified portfolio of revenue streams dedicated to servicing and optimizing turbine performance globally. The order booking for the year stood at INR 6.17 billion , growing by 34% when compared with the corresponding period of the previous year. The turnover, at the same time, was INR 5.38 billion , which was higher by 31%... and aftermarket contributed 33% of the total turnover in FY 2024.
Triveni Turbine's aftermarket segment continued to show promising growth prospects, supported by an expanding range of offerings, including spare parts servicing, as well as refurbishment, catering to a broad customer base. On the technology side, Triveni Turbine has invested significantly in IP development in this current year. Our total intellectual property filings and registrations stand at 374, which is up from 338 a year ago. Our efforts continue in terms of championing the energy transition effort through new product development and introductions in both supercritical and subcritical carbon dioxide, as well as transcritical carbon dioxide-based offerings.
The market and product development continue to be focused on our areas of applications, such as waste heat recovery, waste to energy, municipal solid waste, as well as industrial product for co-generation in both pulp and paper, steel, cement, fertilizer, petrochemical, chemical, distillery, sugar, as well as are just some of the segments. The company expanded its workforce by 19% over this past year, and we're very keen to have all of these assets of the company contribute in the coming year. We do have an expanded vision for including an even greater number of people to be added into the company's workforce in the coming year. I'll have Arun speak on that, as well as other aspects of the company now. Arun, would you like to address the shareholders?
Thank you, Mr. Sawhney . This is Arun Mote. Good afternoon to all of you. As you have seen, in past two years, we have witnessed the growth, and we expect our growth to continue in a good manner. All efforts are being made by the team. We have today a larger product offering, covering a bigger envelope of the market, so the addressable market is increasing every year. We are entering into new geographies and ensuring that our philosophy of being close to the customer continues. Our service is being appreciated by one and all, and we are building strong long-term relationships and not transactional relationships. And that's the philosophy of our company, and we expect to continue this, and we are receiving positive feedback from all the sides, domestic as well as international.
On the marketing and sales front, we have added, as our vice chairman has said, a considerable strength has been added, and we continue to be quite strong in the market and hold our positions of being the top two in the country, globally. On the infrastructure front, as we have indicated, the infrastructure within the company is almost complete. Our total production capacity is 250+, and it is flexible, and it can be increased at a short notice to the desired level. Our subcontract base and the supply chain base is being strengthened continuously, and there is a very strong ecosystem built around our Peenya and Sompura plant. We expect that from the manufacturing and supply chain side, we are well prepared for addressing the growth in the market.
The most important aspect of the business is manpower, and that's what Triveni has concentrated for a long time, right, right from last 15 years. We have a very strong entry-level program with our HR, and we continuously recruit youngsters. We ensure that the overall age in the company is always maintained below 30 years as an average age, and there is a very strong learning and development culture that has been developed. As you know, we have a strong succession planning and, Mr. Prasad, S.N. Prasad, who is the CEO, and Mr. Sachin Parab, who is the Chief Operating Officer, are internal candidates who are succeeding me in the organization and ensure that they will continue to deliver the growth and a strong profitability. Thank you, Nikhil.
Thank you. Thank you very much, Arun. So ladies and gentlemen, happy to open the floor up for question and answers. Over to you, moderator.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Harshit Patel from Equirus Securities. Please go ahead.
Thank you very much for the opportunity, sir. So the first question is, could you give a sense on our domestic and international inquiry books at the moment, and how it has grown in FY 2024 over the last year?
... The inquiry book has declined by about 5%-7%, but it is significantly higher than what our annual, actually, it's higher than the global market even for a year. So we, we find that it's not a constraint, even if the inquiry book has come down, it's reflective of two matters. One is that there are geopolitical constraints that are, that are impacting the market. But more than that is, from the domestic side, inquiry book, their book is quite robust, but, order finalization from both Q3 as well as Q4 has been low.
Our anticipation, as well as looking at April, which has already gone by in May, is that there is a little bit of weak of reversal of that already, but we really have to wait till June to see how much of that reverses.
Just a follow-up to that, would the inquiry book have declined both on domestic and international business, or this would be more of an international issue than the domestic one?
Well, our order booking, as you know, has gone up, so the order finalization from the inquiry book internationally is far quicker. The inquiry book in India is more sticky, and so it stays for a little bit longer. So I don't know if you can. I don't know what you want to make out of that question, but yes, the inquiry book internationally has declined a little bit, while the domestic inquiry book has increased.
Understood. Sure. So my second question is, how is the domestic 0-100 MW market grown in FY 2024, in the megawatt terms? Also, do you expect to grow it at an even higher pace in FY 2025?
The domestic market seems to... Well, all indications are that it could grow very robustly. The lack of order booking in Q3 and Q4 in the domestic market, and actually for the last four, five months of the financial year, led to what is expected to be a very good growth in the market to approximately 2,500-odd GW. But it probably came in somewhere in the region about 2,100 GW -2,200 GW.
This 2,500 MW would be a-
Gigawatts, sir. Apologies, sir.
This 2.5 GW would be a growth of how much over the last year of over FY 2023 base?
It would be a growth of approximately 25%. It would have been.
Sure. Thank you very much for answering my questions. I'll get back in the question.
Thank you.
Thank you. The next question is from the line of Amit Anwani from PL Capital. Please go ahead.
Hi, sir. Am I audible?
Yes, please go ahead.
Yeah. Congratulations for the good set. First question on the inquiry pipeline, again, on the inquiry pipeline, you did highlighted the outlook for domestic and international. Any particular sectors where domestic is seeing a delay in finalization? Any particular reasons there?
You know, I'll let our CEO, Mr. S.N. Prasad, address that, but I think it's broad-based. But I think that we've had what we didn't expect, a degree of people being as conservative as they have been in the last several months. Prasad, maybe you can try to clarify on this question.
Yes, sir. Yes. So on the inquiry pipeline-wise, as our Vice Chairman said that, in the strong inquiry pipeline there from the domestic side, whereas the finalization, we are seeing a little slowed down because, last two quarters, these are typically whenever the election cycle there, we look at that. But the majority of these, discussions going on, finalizations getting delayed, we are hopeful that, probably by end June, July, onwards, the finalization pattern will pick up. Otherwise, inquiry pipeline-wise, all the co-generation to steel, cements, the inquiry pipeline is strong from all the industrial power, range applications.
Right, sir. My second question on the market, which you have highlighted in the presentation, where we are talking about 6 GW of ex-China, ex-Japan market, less than 100 MW, and roughly about two-thirds is the renewable energy-based, or thermal, steam turbine-based, renewable, market. So just wanted to understand what is our addressable market, and since taking the point from the commentary that you're talking, we're expanding new geographies and we have gained market share. So first is what is our addressable market? And will the addressable market in terms of gigawatts is going to expand for you? That is my question.
Yeah, you see, the fact is that these are. You have to take the data which we have just presented from a third party as it is. It comes with its own constraints, which is that, very frankly, everyone doesn't report fully. So that is a data matter that you have to consider. More than that, there are specific sectors in which certain products of ours are currently being introduced, and we are exploring into those markets. And as Arun has pointed out, as those introductions take shape, we would be expanding markets in those areas. So, very frankly, the attempt will be to cover the entire market in its entirety in the next several years.
But as of right now, we would very frankly be covering at least 80% of it.
Right. And so for INR 2,500 domestic market, is the breakup same, power versus renewable sources?
No, no, it's definitely different. India is much more thermal, fossil fuel dependent.
... Right, sir. Now, my next question, sir, on any addressable market with respect to the value or volume for domestic market as it is global market for API turbine, if you could throw some color. And how is the. We talked in last call about the very strong inquiry pipeline in domestic market there. So just more color on how the market is shaping up.
Yeah, on the API, there hasn't been much movement in the domestic market. Internationally, there's much more movement. We have good market share there. We have good appropriate products, and so both power drive turbines, we are confident of being able to provide our customers with appropriate solutions, given the connection references, et cetera, that we have. What's important for you to understand is that this is not only a technological question of having a product, the appropriate product, but to be able to provide the service backup and the reliability and robustness that the customer requires. So, it is an integrated offering that the company needs to present. Of course, in domestic market, where we do have a much greater presence, we are able to cover that more comprehensively.
Internationally, it will depend on which geographies and where we have local presences and where we have people and feet on the ground. So we're trying to improve that continuously so that we can improve our chance of conversion of inquiries to others. And that is the attempt that we'll make in the next several years, as we pointed out in the past as well. In specific, the oil and gas market does present a very large market in terms of potential inquiries, and that's something that the company is looking at quite aggressively.
Any value with respect to how the market is and anything you can give color with respect to value or any contribution in revenue?
I'm sorry.
Okay. Lastly, with respect to aftermarkets, how has been our breakup for export versus domestic in the aftermarket for FY 2024?
I don't know if we give these data, but you can come back to Surabhi. I must point out, you know, since you're asking very data-driven questions, that a lot of the questions that people have asked in the past are at some point or the other used against us in some marketing by our competitors. So we will intentionally try to be vague on certain answers where we think that there may be some competitive information.
Sure, sir. Thank you. Thanks for answering my questions.
Thank you. Thank you.
Thank you. Before we take the next question, a reminder to all participants that you may press star and one to ask a question. The next question is from the line of Ashwani Sharma from Emkay Global. Please go ahead.
Yeah, thanks for the opportunity. So my first question is again, on the aftermarket. So if you look at the quarterly run rate, it has been in the range of INR 145 crore-INR 144 crore. And in this quarter, there's a decline of around 3%. If you could just tell us, you know, how this, you know, why there is a flat, you know, growth on a quarter-on-quarter basis and degrowth on a year-on-year basis. What is the outlook there?
You said there's a degrowth in the YoY basis in aftermarket?
Yeah.
No, that shouldn't be right. There's a growth of 30% year-over-year.
It's INR 148 crore last year, and this is INR 144 crore.
Quarterly. You know, so, Sachin, if you're there on the call, maybe you could help address this question.
Good afternoon, everyone. So on a quarterly basis, yes, there is a slight degrowth, and that's basically because of some order finalizations which have been delayed. And we are very cautious in terms of acknowledging order booking. Unless we get the advance, we do not consider it as orders booked. So... And, and therefore, it's a small correction, and that should not be the trend in the future.
Okay. Secondly, you gave us the your capacity number of 250. Is it possible to share the volume numbers for the quarter and the year?
No, I don't think so. But, but suffice to say that we are not really constrained by, the capacity of what we produce. As you can tell from our balance sheet, we are very asset light, and we have the flexibility to expand this capacity by up to a third at any given point in time.
Understood. But if you can share us the utilization number, capacity utilization number?
It would probably be somewhere in the region of about 75%.
75%. Okay, those are my questions. So thank you.
Thank you.
Thank you. Ladies and gentlemen, you may press star and one to ask a question. The next question is from the line of Shyam Maheshwari from AB Capital. Please go ahead.
Yes. Hi, sir. Congratulations on a good set of numbers. My first question was on the U.S. market. You were planning to set up a service center in the U.S. So could you provide an update on that?
Yes, that's a very good question. We had talked about that in the last conference call, and the subsidiary, as you have seen from our quarterly reporting, has already been established. People have already been hired. The executive who will be handling the region is already in place in the United States. The machinery has been ordered, shed has been leased, and we are already on track as far as our business plan goes, to achieve our order booking and revenue for this year. So it'll, it's all on track.
What we're seeing in the market, again, I'll ask, maybe I'll ask, Sachin first to go, to, to give an explanation as to where the subsidiary stands, and then Prasad, who may have to log off the call, can also just contribute in terms of talking about the customer acceptance in that market and inquiry like that. Sachin first.
Yeah. Our initiative in the United States is progressing as per our plan. As our vice chairman has mentioned, the initial few steps have been taken and business has commenced, so our sales and marketing activities is being carried out. The things are progressing at the pace as we had planned. So we are quite satisfied with what we've been able to achieve so far. It's very early stages of our journey in the US for the service facility. We will have much more details to discuss in future quarters.
Right. Just maybe a clarification on this. So are we expecting to hire more people, and would this be a probable drain on your EBITDA margins in the short term, or how do you see this flowing?
No, I think the fact is that, Firstly, yes, we are going to be expanding our workforce up anywhere between 20%-25% in the coming year, which is FY 2025. Given that very high growth of intake, you are right that people will not contribute immediately to the company. But if you look at our order booking, which will then translate into execution, it is more export focused. Margins do not seem to be a problem at this current point in time to at least stay at the same margins that we have. So we don't foresee that to be a problem.
The U.S. in specific, of course, will may have a negative contribution, but that will get absorbed by the consolidated entity quite easily.
I understand. I understand. And my second question is on the API market. We wanted to understand if this is now a meaningful part of our revenues, and has it now reached double digit? If you can give some color around that.
Yeah.
How are the growth opportunities here?
No, this is a core segment for the company. We have extremely good products for this market. As we get closer to customers, as we get registered with them, we become more relevant. We already have a good install base in this sector. Prasad, would you like to add anything here? He may have logged off by now, he's currently traveling. But, suffice to say that, the... This is a segment that I think will contribute to growth for the company in the coming years. There is a lot of expenditure that is happening, and our products and solutions are very appropriate for our customers in this market, both internationally as well as in India.
This is a very technically demanding sector, where you not only have to have high degrees of quality assurance, but also a deep sense of the reliability and robustness of the product in terms of its configuration. So we're quite confident that we will have success. We have already had success. We have a good install base in the segment already, both in the power as well as drive turbines.
Understood. So would it be a fair assumption to make that your exports would also be driven largely by API turbines?
No, no, no. Our renewable energy is a very strong mainstay of our export strategy, though API will, we will form an increasing role. So, it's as you know, we are dependent. Wherever heat is generated from a customer, we end up providing that heat and power solution. So it is, we are agnostic to which industry it comes from. But very frankly, it will be both. We see services being an even larger contributor to growth in the export market in the coming years.
Understood. That is all my questions. Thank you very much.
Thank you. A reminder to all participants, you may press star and one to ask a question. The next question is from the line of Uttam Kumar from Avendus Spark. Please go ahead.
Sir, thank you for the opportunity, and congrats on a good set of numbers. So two questions from my end. Firstly, with regards to the aftermarket orders which we have, so could you just give some color on, who is the margin profile of these orders? I mean, earlier we used to enter one or two orders which are of a lower margin profile. Can we expect the margin profile of the current aftermarket orders to be much more margin appetite? That is my first question.
No, I think the fact is that you see, at the end of the day, the margins are already quite robust in the entire aftermarket segment. We, as Arun had pointed out earlier, we look at our relationship with our customers from a lifecycle basis. So you, it's not a question of margin expansion, is we want to be consistent with our margins in different offerings. So in terms of product mix, within the aftermarket segment, which stretches from services, spares, as well as refurbishment, those mixes can change and move the margin, but in general, it will stick within 1% or 2% of where we've historically been. They won't move very much.
... Got it. So I mean, in connection to that, I mean, again, acting on the, I mean, earlier, I mean, this particular point was addressed on the margins that we are expecting the margins to at least 15% at the EBITDA level. But the question is that, one side, we are seeing the utilization levels also improving. We have a robust order book, which will tend to, where this will lead to a better execution over the next two to three years. On the other hand, we have some workforce increasing also. So when should we expect margin expansion happening for the company? Because we have been around the mid-end of 20%.
Can there be any meaningful expansion which the company can, I mean, see over the next two to three years, or it will be in the same range, there'll be some expenses, which will always be restricting the margins from expanding going forward?
You know, so I'll tell you what our strategy is at this point in time, that we have a lot of unfulfilled ambitions as part of the revenue growth goals. And so that is more of a priority for us in terms of being able to expand our, our offering to be closer to customers, and that will take a priority. And so we've always said that we will maintain margins at least at where we are. We've consistently beaten that 20% odd number that I've talked about. There's no reason, as you rightly point out, given the fact that you have an increasing share of aftermarket as a percentage of sales and export as a percentage of sales, that we should not face any margin pressures.
Also, the commodity price-based issues that we had in the past are somewhat in a sense behind us, though we do see some commodity pressures in areas like copper, et cetera. But I would say that those are all manageable. So I think that it's really our strategy is to drive enormous growth, and if the consequence is margin expansion, so be it. But so therefore, I'm hesitant to answer your question directly.
Okay, sir. Okay. Thank you, sir. That's all from my side.
Thank you. The next question is from the line of Teena Virman i from Motilal Oswal Financial Services. Please go ahead.
Hi, sir. Congrats on the recent set of numbers. My first question is related to domestic order inflow pipeline. So which user industries do you think will be contributing more to the order inflows for the company going forward? Maybe from post-June, like you mentioned, that these inquiries will start translating. But primarily, which industries are you targeting and you think can contribute to these inflows going forward?
So we see the demand and the inquiries coming from steel to cement, which is quite robust again. The entire agro space of distilleries, the inquiries remain, but we, as having deep insight into that space, don't think it's extremely practical for that to come back in the short term. We'll have much more conversion in process for generation. But you do have a lot which is happening, especially on the renewable side, which includes waste heat recovery. Waste heat recovery is agnostic to industry. It is a play on the fact that you have higher energy prices, you have a more conscious corporate culture in terms of being able to be more energy efficient.
And so this stretches across industry, and it's agnostic to whether it is steel or cement or paper or rubber, et cetera. It's more driven by a more industrial CapEx.
Okay. So do you think that the inquiry level can translate into a much higher order inflow run rate for the nine months of FY 2025, for the remaining nine months of FY 2025?
Yeah, we're very hopeful that that'll happen. We already have indications in the first couple of months of this current financial year that things seem to be on track. But again, I'm just going to restate the fact that you see a lot of our demand is agnostic of industry. It's driven by a greater theme of energy efficiency. Energy efficiency is when you have capital on your books and you want to reduce your cost of power. It's not necessarily driven by capacity expansion.
Right.
Some of it will be driven by brownfield and greenfield capacity expansion, but it may not necessarily be. That's the point I wanted to make.
Okay. Okay. And we saw a very healthy momentum in the export inflows during FY 2024. Do you think that based on the inquiry levels that you are having on export side, do you think a similar kind of momentum can also be maintained going forward, the way you are entering different geographies?
Well, yes, yes, most definitely. Our efforts are towards that effect, and we want to sustain growth in a very predictable way. So our efforts are built, are geared towards building competency so that we can sustain it. These are not one or two-year efforts. These are multi-year efforts, where we want to actually ensure that we are not only able to increase our inquiry book, which leads to a greater degree of order inflow and therefore revenue, but also expand our presence closer to customers, so we can expand our servicing offering, and that can continuously cater to greater profitability from the aftermarket side, while still assisting in terms of providing customers with confidence to be able to place orders with us for the product.
So it's a continuous cycle, and we will continue to... We're optimistic that we're signing on this growth path. Our new product and new technology introductions continue to, well, they don't contribute in any meaningful manner right now to turnover, but they do provide good visibility in, in spaces where we think that we would be able to show, again, leadership in the years to come.
In the overall scenario for the global market, you don't see any kind of tapering off, CapEx towards this renewable space? That is not visible, at least in the numbers that you are posting on the export inflow side.
... So, you know, the majority of our renewables sales are coming from both biomass-based IPPs, as well as waste solid municipal waste consideration, but also energy efficiency. As long as money exists for the space and internationally, especially in Europe and North America and parts of North Asia and Northeast Asia, these continue to be very robust sectors. There's a lot of money behind it. So as long as the raw material exists, which could either be waste heat or biomass or waste, then it always makes sense for you to do it. It's just the funding exists. It's a question of the availability of the waste.
Raw material. Yeah, yeah. Got it. Got it. Right. Sir, my last question is related to the U.S. market, where you've you mentioned that you are achieving progress. So is there any update on the overall market opportunity that can come out in the U.S. market, both on the export as well as on the aftermarket side?
Yeah. We've received extremely good interest from, from our interaction with clients. They're eager to see our progress in terms of building our capability. But at the end of the day, from that. That's a little bit more from the servicing side. From the product side, there are a lot of incentives that the government of the United States has provided under the Inflation Reduction Act and a variety of different fiscal incentive schemes. We'll have to wait for that uncertainty of the elections also to play out. But suffice to say that I think people are quite committed to go down the lines of being more energy efficient, which is really a play that Triveni Turbine provides in this renewable space.
Okay. So your current set of offering will be primarily targeting at the moment, at the initial stages, maybe on the aftermarket and later maybe on the product side?
No, no, both are happening parallelly. It's just a question that some are easier quick wins, and some will take a little bit more time.
Got it, sir. Got it. And that's it so much.
Remember that the United States is a $25 trillion economy. The capital stock that they have presents a very good opportunity from an aftermarket perspective, especially for third-party service offerings. At the same time, they've historically not invested because of low energy prices in energy efficiency. But I think it's inevitable in the way that the world is moving, that given the fact that capital is available here, that people will eventually pick it up.
Got it, sir. And there is no incremental CapEx. It will be more OpEx-led spend that you would be having over there or any incremental CapEx being finalized by the company?
No, we will capitalize our subsidiary there to the extent of maybe about INR 50-odd crores, less than, I mean, INR 40 crores. Primarily debt, so that we can be paid back quickly to the parent. And this is to, this is gonna go into some machinery that we have to purchase, et cetera, to be able to have capability on the ground. There'll also be some CapEx that we'll have in our facility here to strengthen our R&D. We want to spend much more money in that space. So, these are all things that the board has considered and we will be implementing.
But overall, if we are looking at the CapEx, CapEx somewhere in the region of about INR 90 crore-INR 100 crore in the coming year or coming, let's say, couple of years, these are, these are things that I think the company can easily afford.
Sure, sir. That's helpful. Thank you so much.
Thank you. Ladies and gentlemen, a reminder to all participants, you may press star and one to ask a question. Ladies and gentlemen, you may press star and one to ask a question.
So if there are no more questions, then I think I can close the call. Thank you very much for joining the call, ladies and gentlemen, and I look forward to you joining us for our first quarter earnings call. I'm sure that we'll be able to sustain our growth and give you an equally positive results then. Thank you very much.
Thank you. On behalf of Triveni Turbine Limited-