Q4 24/25

May 15, 2025

Summary

FY25 consolidated revenue rose 40.79% and net profit 34.25%. Railway approvals, INR 141.72 crore of PLI support, export expansion, and new-facility ramp-up underpin the outlook, while start-up costs and material constraints pose near-term risks.

Ladies and gentlemen, good day and welcome to the KRN Heat Exchanger and Refrigeration Limited earnings conference call hosted by Dolat Capital Markets Private Limited. 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. Should you need assistance during the conference call, please signal the operator by pressing star and zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Yogesh Patil, Lead Analyst from Dolat Capital. Thank you, and over to you, sir. I would like to extend a very warm welcome to all the participants for taking the time out to be on this call, and management for taking the time out to present us the scenario of Q4 FY 2025 and full year FY 2025. We have with us Mr. Santosh Kumar Yadav, Chairman and Managing Director; Mr. Sonu Gupta, Chief Financial Officer; and Mr. Jitendra Sharma, Company Secretary. I want to hand over the call to management for initial remarks, and then we will have question and answer. Over to you, sir. Yeah. Good evening, everybody. Myself, Sonu Gupta. It's a pleasure to welcome you all to KRN Heat Exchanger and Refrigeration Limited Q4 and FY 2025 earning conference call. Thank you for taking the time to join us today. As we close out FY 2025, I can confidently say this year marked a defining chapter in our journey, driven by the strong execution, expanded capabilities, and strategic breakthrough. We are operating in a landscape marked by accelerating industrial electrification, growing demand for energy efficient cooling solution, and a global supply chain system. We've made significant progress on multiple strategic initiatives this year. Our HVAC business continued to see robust traction with capacity utilization maintaining above 90%. The refrigeration vertical is set to receive prototype market entry by May 2025, backed by the strong OEM and aftermarket interest. One of the biggest breakthroughs this year has been our approval as a vendor by the Ministry of Indian Railways. Our wholly-owned subsidiary, KRN HVAC Products Private Limited, has received official recognition from Ministry of Indian Railways for the supply of oil cooler radiators for converter transformer. We have already delivered a 10-unit prototype order to Banaras Locomotive Works, BLW. We also incorporate Thermotech Research Laboratory Private Limited, a wholly-owned subsidiary focused on HVAC&R testing and training. This aligns with our strategy to push deeper into R&D. Please hold, ladies and gentlemen. The line for management has disconnected. We have the management reconnected in the call. Okay. I will make a quick financials. One of the biggest breakthrough this year has been our approval as a vendor by the Ministry of Indian Railways. Our wholly-owned subsidiary, KRN HVAC Products Private Limited, has received official recognition from the Ministry of Indian Railways for the supply of oil cooler radiators for converter transformer. We have already delivered a 10-unit prototype order to Banaras Locomotive Works, BLW. We also incorporated Thermotech Research Laboratory Private Limited, a wholly-owned subsidiary focused on HVAC&R testing and training. This align with our strategy to push deeper into R&D and testing lead innovation. Our capacity expansion through KRN HVAC Products Private Limited is progressing well with civil work nearly completion. We will start commercial production soon. We also successfully implemented S/4HANA Cloud version, our SAP ERP system, on April 1st for our internal operation, which will help us improve operational efficiency in our internal visibility and strengthen process control as we scale. Now, a quick look at our financials. For Q4 FY 2025, on consolidated business, we delivered a strong performance with revenue of INR 135.83 crores, marking a robust year-on-year growth of 62.3%. EBITDA stood at INR 18.89 crores, registering a 7.48% increase, while net profit rose to INR 14.87 crores, reflecting healthy growth of 23.44% compared to the same period last year. For the full year FY 2025, our consolidated revenue reached to INR 441.71 crores, growing 40.79% year-on-year. EBITDA came in at INR 70.54 crores, up 20.63%, and net profit stood at INR 52.88 crores, a growth of 34.25% over the previous year. On a stand-alone basis, Q4 revenue is INR 132.16 crores, up 58.18% year-on-year. EBITDA rose 13.07% to INR 20.24 crores, and net profit increased by 10.98% to INR 13.75 crores. For the full year, stand-alone, we recorded revenue of INR 438.47 crores, reflecting a 39.82% growth. EBITDA was INR 70.01 crores, up 20.50%, and net profit was INR 50.17 crores at an increase of 25.79% year-on-year. Looking at the revenue mix, the domestic business contributed INR 362.4 crores, accounting for approximately 84% of total revenue with a growth of 49%. Overseas revenue stood at INR 67.5 crores, driven by the strong performance in the UAE and Canada. Our export grew nearly 49% year-on-year, and now contributes 16% of consolidated revenue, again led by the traction in the UAE and Canadian market. We are aiming to increase this year to 30%-35% by FY 2026. With product pricing 20%-25% lower than EU peers and faster development cycle enabled by our in-house lab, we are strongly positioned for global expansion. While we did face some margin pressure during the quarter, we remain confident in our long-term solar adoption, increased automation, backward integration, and rising export sales. These factors are expected to support sustainable margin expansion. Our team strength now stands at around 480, continue to be key pillar of our execution and innovation capability as we scale. Further, the Rajasthan RIPS incentive and our application RIPS incentive enhance profitability. Looking ahead with a strong sectoral demand, a growing order pipeline. Excuse me. Yes, sir. Please go ahead. R&D capability and new capability coming online, we are entering a very exciting phase of our journey. In line with our long-term vision and commitment in the Make in India initiative, I am also pleased to share that our wholly owned subsidiary, KRN HVAC Products Private Limited, has received approval under the Government of India Production Linked Incentive, PLI scheme for white goods. The approval come with a sanctioned financial incentive of INR 141.72 crores. This will play a vital role in supporting our backward integration strategy development and localized component ecosystem, and is accelerating our business. In closing, I would like to thank our team, customer, and shareholder for their trust and support. We remain committed to building a high-growth, innovation-led, and global competitive company. With that, I now open the floor for Q&A. Thank you. 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 Nikhil Singhania, HNI Investor. Please go ahead. Sir, thanks for the opportunity, sir. Just two small questions. First is related to today's filing about PLI scheme, benefit of INR 141.72 crore. Can you share some more details about it? The second was related to the increase in material cost. How do you see it going forward? Yeah. Good evening to all. I think that is good because today we received the PLI approvals around 11:00 A.M. today by mail. That same we updated on both exchange also. That actually is called Production Linked Incentive. Whatever production we will make and we will sell, there is a top-line percentage we will receive from government, and by total they approved INR 141 crore. There is a criteria like what maybe turnover we will do and what we will sell, and then they will give us the percentage of total sale. Others, like rules and regulation, we will receive in next one or two days. Once we will have all rules and regulations, then I will let you know. But now conclusion is like that. Earlier policy, they have like that 6%, then 5%, and then 4%. We can get the incentive in next three year in terms of this percentage for top line. Your second question about little pressure on EBITDA. Actually, last quarter, we have three things. I think we calculated our EBITDA is down around 1.7% if we compare to last. We received some seasonal sales, like not regular sales. You can say some increased sales. We received some order with less margin. Secondly, we sold some raw material actually to our OEMs. Last actually quarter, have some pressure or this maybe issue with the BIS. Some OEM have material shortage. Somehow we have stock, so they asked us to sell the material. We have to sell because they are our original customer also for our product. That is raw material, we cannot get the same percentage of margin. We sell on less margin. Secondly, we have some more employee for training, which will transfer to KRN HVAC Products. That's our employee cost increase around 1%. If I club with three reasons, then it's around 1.7%. That is the main reason for EBITDA pressure. Yeah. Okay. Thank you, sir. Thank you very much. The next question is from the line of Reeth Ranawat from Avendus Capital. Please go ahead. Yes, so first I have two, three questions. So, in one of the analyst calls, so you had- Can you raise your voice a little? I am unable to hear. Hello. Am I audible right now? Yes, now clearly. Good. Yes, in one of the analyst calls, you mentioned about the refrigeration facilities. Could you please clarify that KRN's already developed any refrigeration facility or are there any plans to establish one? Could you give some information about it? No, I actually misplaced that word. What about you, maybe can you come again for that? You mentioned about the refrigeration facility in one of the analyst calls. So what was it about? Laboratory. Laboratory, right? No, the refrigeration facility. For refrigeration, we are already in. Actually, I am unable to get your right question, but however, for refrigeration, we are making completely refrigeration machine for indoor units. We are already making for Daikin India. So Daikin India, whatever selling for indoor, for refrigeration, this cold storage, we are already making. And, for heat exchanger also, we are making for refrigeration industry. So that is my product. Sorry. You mentioned around 4-5 million of revenue from that facility. So, what was it about? Okay. Refrigerator, not refrigeration. Yes. Now I understood. So actually, for refrigerator, we are making three products. One is called Roll Bond Evaporator, second is the Fin & Tube, and third is the Wire On Tube Condenser. Those three products belong to component for refrigerator industry. That top line, what you said, we can achieve in next three year. Now we receive all machines. So is under installation, and we received some small order also from aftermarket and for OEMs. Since last three months, we are under discussion. So we received the RFQ with many OEMs also. Even Havells near to us, they will also make refrigerator. It's from our factory to, I think Havells' distance is around 11 kilometers. So they will also start mass production from September. So we are discussing with Havells also. This facility, we will start soon, including our existing facility. That top line, what you said, we can achieve in next three year. But slowly, capacity will increase, we will receive revenue also, and you can see the end result also in coming results. This is under the new subsidiary, right? HVAC subsidiary. Yes, it is in new subsidiary. Okay. Another question that I had was, our main end user industry is HVAC industry. With the INR 3 million Capex, can we see a territorial shift in the end user industry? Our focus will remain on the HVAC industry only. Sorry, actually, your voice is not clear to me so I am unable to actually hear your answer. Can you repeat again? Hello. Yes. Right now our main end user industry is HVAC. Coming with the INR 3 million Capex, do we see a territorial shift in the coming years or HVAC remains our focus? As of now, all products are related to HVAC&R only, like heating, ventilation, air conditioning and refrigeration only. However, we can add similar other complete product as well, but industry will remain same as of now. Okay. One last question is that, how will the new R&D facility contribute to KRN's revenue? Yes, that is a good question. Actually, this facility we made as a separate. There is a separate plot number, separate building, and we invested separately. Even name is also not linked to KRN's. Its name is Thermotech Research Laboratory. We did MOU with AHRI also. AHRI is an agency from North America, and is maybe the biggest agency for certification and these quality standard for our industry. There is no laboratory as of now which is approved by AHRI. This will be the first laboratory. Already we have MOU with the AHRI, and we will do as a third party, other testing also for complete the industry. They can come, and they can test based on international standard, Asian, American, and of course, Asian. What we will do for our product. So as of now, we are making based on customer input or based on software, we can design the product. Then we can offer to customers. Then customer have to test by themselves only. Then, if sometime issue, then they come again, and then it is taking too much time. Now what we will do, based on their input, we will make the product. Then we can test by ourself for performance, for air flow, and then pressure drop. We will have certification from our laboratory. Laboratory, of course, is an independent laboratory and third party based on international standard. They can believe this product is. They can use on their product directly without test. Secondly, what we will do, as of now, all OEMs, they are busy with their new development or new coming projects. But existing, what they already approved, they are not want to change. Because if I want to offer some savings, because when maybe 10 year back we design what that time, a small tube diameter is not there in the market. Once they start, maybe from half inch, and now you can see we have almost five geometry, belong to five mm tube diameter also. What we will do, we will take their old model, we will test them with original condition, and then we will propose with our product. We will do all tests. Then once complete the testing, then maybe we will go to the customer. Then we can offer, "This is your product, and you can save such money because of if you can change the heat exchanger." That mainly European and U.S.A. guy, they have very less resources in terms of R&D and less manpower. That is we are thinking we will convert faster our market for both European and for North America. Okay. Do you have a number in mind for that revenue share? No revenue will remain same, because revenue will come from HVAC, only from facility. But customer will believe if you have laboratory and you can have testing facilities, so they can believe on your product and they can valuation, so they can offer us some slightly up margin as well. Okay. Thank you, Suresh. Thank you very much. The next question is from the line of Shivkumar Prajapati from Ambit Investment Advisors. Please go ahead. Yeah. Hi, sir. Good evening. Thanks for having my question. Sorry if I am repeating the question, but my call got disconnected. The first question is on margin. I need some clarity that our pricing is like whatever the prices are going on for the last quarter, we average it and we price our product for the next quarter. What led to the fall in our margins for this quarter? For this quarter, our EBITDA, maybe you can say, down around 1.7%. There is the three reason which I already told. However, I can repeat again. First, We received some seasonal sales in the last quarter, so the seasonal sales we received less margin. Secondly, we sold some RM only to our OEMs. RM, we have less margin compared to our existing product. And third one, our employee cost increased because we hired some employee in KRN Heat and they are going to train in KRN Heat and then will transfer to HVAC. That three impact is total is around 1.7%. Okay. Sir, but if we see on year-over-year basis in Q4 FY 2024, our margins were above 21%. So it's a big fall, around 7%, 700 bps. No, that is, I think, not correct. Hmm? 7% is the EBITDA. It's increased 7.48. 7.48% is an increase, not decrease. Not decrease. No, sir, I'm talking about the EBITDA margins and not absolute value. The EBITDA margins. No, I'm talking also in terms of percentage. See, that our Okay. EBITDA stood at INR 18.89 crores. Okay? I agree. This thing, 17.48%, as this was last year, it was Was INR 17.6 crores last year. Yeah. Same period, yes. The margins were around 21.4% for Q4 FY 2024, that is last year. For this year, like the recent quarter, it is 14.4%. So there's a gap of around seven point something percentage. I'm just trying to understand this huge gap. No, I think you have maybe compared with the Q4 2024 to Q4 2025, right? Right. Exactly. Okay. That, I think, compare, we don't have, no? Okay. If you want to give me, maybe. Maybe separately we will reply because that data we don't have in front. Maybe I am discussing for Q3 to Q4, actually. Okay. Sir, we will connect for this. Yeah. My next question is on this U.K. FTA deal with India. Is there any favorable thing for us? Also please, can you throw some light on this tariff impact by the tariffs which have been imposed by the U.S., and also the trade talks between China and U.S. Will these things impact our business? U.K., actually, we have some customer, like a small customer already we have in our portfolio. However, one big customer, we are going for discussion. Of course, they will have some maybe advantage if they will take from us. But before that also they are discussing with us on serious note. Okay. As of now, we don't see the big impact on us from U.K. However, backside, they will have some benefit. Second question about U.S.A. tariff. Actually, U.S.A. earlier they are buying from maybe locally or from European or maybe from China. As of now, no customer wrote us on that tariff. Whatever we are discussing is continue as of now. Maybe they are thinking what will be the maybe result on end. They also don't know, and we also don't know. However, as of now, we don't have any impact. Okay. Third question about China and U.S. trade deal. As per our personal opinion, I think whatever percentage they will decide, I think it will be compared to India, I think it will be maybe more compared to India. I think we will have benefit. Even this scenario, the other side also manufacturer from U.S.A. side, so they feel at least they have one other supplier from other than China. China Plus One policy is still practiced in maybe North America, of course in Europe, because they don't know what will happen after four years because of this tariff issue. Yeah. Okay, sir. This phase three is on track. Did we start with the sample production that we were about to start in May? Before next call, for sure we will start. Actually, we have to commencement of the production. First we can cut, like now machine is under installation, someone machine under trial. Maybe next two, three weeks we will be able to declare production date. We need actually two, three weeks to conclude the things. For sure, before quarter, for sure we will start. Will this impact our commercial production that we were about to start from H2 FY 2026? Mainly- What is the expected- from Q2. Q2- Sir. You can see on the top line for sure. And slightly we will start from this quarter or early next quarter. Okay, sir. Our run rate is around 2-3 new client additions per quarter. Did we have any new clients on our list for the quarter? Yes. Okay, sir. That run rate remains same as of now also. Okay, sir. Would you like to share the volume growth for the full year also for the quarter as well? The number I cannot share, however, you can see quarter to quarter, of course. This PLI, if you heard, that is good news for us that we received today only, so it will also help us. Sir, this BLW, post securing that trial orders, what is the expected business size from them for the next 2-3 years? Actually, this BLW have, I think, total 3,000 order. If you roughly like 4, so I think 1,200 crore total in terms, but there is 7-8 players, so it is a tender-based business. So who will be like L1 that have maybe more business. It will start maybe after 6 months, because now we have to submit our two prototype for trial purpose in next couple of week, and then they will run on their locomotive on running actual conditions. It may be 5-6 months, and then they will give us the approval for bulk tendering. Sir- Other than BLW, we are under discussing with other OEM also for same product. So even we receive some sample order also from other OEMs, and we will target to export also. So there is a possibility from other OEMs, some good numbers. Okay, sir. Thank you, sir. I will wait in the queue. Thank you. Thank you so much. The next question is from the line of Saloni Jain from Nirmal Bang PMS. Please go ahead. Hi, sir. Am I audible? Yes. Sir, I have a couple of questions. First is, since we are expected to begin commercial production from June this year, what kind of capacity utilization are we looking at in FY 2026, given the soft commitments we have from clients in the rolling order book? What is the order size of tendering expected from Ministry of Indian Railways? Now, order like from this BLW, as of now, we received only 10 numbers, like as a purchase order. Yes. After that, there is a tender around total 70 piece. I think 2 or 3 tenders. That also we quote our price, and we receive L1 confirmation. Whatever they will convert into POs, we will have almost 70 piece as of now. Bulk tender will come maybe after June or July, but once we have approval for bulk tendering, then we can enter on for bulk tendering. It will take 6 to 7 months, other like for BLW, but we can supply to other OEMs, like local OEMs also we can supply. What was your first question? I missed, actually. It was on the capacity utilization that we- Capacity. So capacity, what we told like before also in other calls. This year we are targeting around 20% to 25% of utilization from new facility. Okay. And sir, could you give a breakup of revenue with respect to commercial, automotive, and data center in FY 2024 and FY 2025? How do we expect this mix to shift in next three years? This automotive and data center, we not actually calculated based on industry. This data maybe I can provide maybe later. As of now I don't know, but the growth is there for sure. We already wrote down. These two data we will share, but data center, of course, growth is there almost 60% to 70% from OEMs, existing OEMs. This will be continuing. Okay. Can you tell me if we expect? Right now, majority of our revenue is coming from HVAC. Are we expecting that from commercial to data center there will be a shift? For data center also, we call HVAC. Of course, this is also same process. We not calculated based on that. If you like, maybe change the industry size, then of course they can convert. But we are considering HVAC and our only data center. Okay. And sir, based on the previous participant's question also, are we aggressively trying to target U.S. market now after the tariff war that we have seen between U.S. and China? It is a common understanding that China will definitely have a higher tariff than India. Are we aggressively targeting that market as well? Yes. Actually, some of geometry we added for North America also. Our position on same, and even we did not receive any feedback or reply from our customer or future customer, if they have some issue with tariff, because they understood it will happen maybe from when they want to, you can change. But like development and RFQ, there is no change. Still we are on the same condition. All right, sir. If you allow me for the last question. Are there any further plans of expansion that we are looking at in FY 2026 and 2027? For this year, Have you decided on the Capex? No. As of now, we have not decided, but first we will conclude this, our manufacturing start, and then next quarter we will see and we will declare. As of now, under discussion many things, but we cannot declare. All right. Thank you, sir. Thank you. Thank you very much. The next question is from the line of Hiral Parekh from Dolat Capital. Please go ahead. Sir, my question is regarding the oil cooler radiators that we will be supplying to Indian Railways. Could you help us with the margins on the same? I understand from prior guidance that they are higher than the other orders that we have. Hello? Ladies and gentlemen, the line from the management has been disconnected. Please wait a moment till I connect them again. Ladies and gentlemen, we have the management back in the call with us. Sir, please go ahead. Hiral Parekh, you can repeat your question. Yes. Sir, my question was regarding the oil cooler radiators that we are supplying to Indian Railways. What would be the margins for the same? I understand from prior guidance that they are higher than the other orders that we have. Yes. It is almost double compared to our existing product. However, this is the tender business, so sometimes it can be lesser because if you want to get the more order, then we have to reduce the price. Based on current price, it is almost double compared to our existing. Sir, in this year, how much of the order book do we expect to realize? For oil cooler? Yeah, for oil cooler. As of now, we have firm order around INR 50 lakh and around INR 1.5 crore we have received L1 position. As of now, if I club, around INR 2 crore as of now. But some new tender is incoming month also. First of July also one tender around 70 piece. And rest of Indian Railway, we are under discussion with other OEMs also. As of now, we receive sample order only. Once we will supply the sample, they will check, then they will open for new order. That is the current situation. All right, sir. Thank you. Thank you very much. The next question is from the line of Hardik Gandhi from HPMG Shares and Securities Private Limited. Please go ahead. Hello, sir. Thank you for taking my question. Am I audible? Yes. Hello. Just wanted to know a few basic things. First is, what would be our existing overall margin for the year expected, because given that there is a steep drop in the EBITDA margins and we are starting a production in Q2, there will be a lot of fixed costs coming our way for which we might not be able to break even or something like that. Just wanted to know on a year-on-year basis where we can expect our margins to land. There is a two basic situation. One is our RIPS will start, and the second one is the PLI will also be received today approval from the Government of India. This will be definitely adding our EBITDA margin. Also that new facility will start in the second half and it will be a faster path. So diluting our fixed expenses after coming this mass production of this undergoing new facility. Yeah. I just wanted to know what would be a good number, like just 14% would be a good stable margin which we can maintain, or do you think it will dip more in the near future and then it will stabilize? The line for the management has been disconnected. Please hold. We have the management back with us. Yeah. Sorry for this. I do not know what happened. But that question, it is now that if we talk about standalone, this our margin will remain same or slightly up if we compare to this last quarter. About consol, of course, again one or two quarter, there will be some more pressure because of initial cost will be high, like overhead, and the production will be less. But from like quarter third, we will on the same condition as our standalone. Understood. We can expect roughly 14% as a stable EBITDA margin? We are looking that number, but now if you considering like PLI itself, we can get like 5%, so that we receive today only. So that will be much more, but however Is PLI a production linked thing for the new phase, or is it for the existing phase and the new phase? No, it is for new only, for HVAC Products, for new facility. So we will have 5% now PLI, and then 1.5% or 1.55% from RIPS. So you can see 6.5% is there. How long will this go till? Unless and until we realize INR 140 odd crore or something like that. This PLI for next 3 years and RIPS for next 10 years. 10 lakh units or 10 lakh. No, 10 years. PLI is for next 3 years. Okay. The RIPS for next 10 years. For next 10 years, any production we do, we get 1.5% from the Understood. Yes. Yeah. That's it from my side. Thank you so much. Thank you very much. Next question is from the line of Shivkumar Prajapati from Ambit Investment Advisors. Please go ahead. Yeah. Hi, sir. Thanks for having my question again. The first question is, we are supplying samples to our customers. Could you please share what's the pipeline for our customers, and what is the conversion ratio? Our industry is not like that. We are supplying sample, and if they will reject, then they stop the conversion. It is not like that. We like supplying sample. If they have some issue, then of course, they will ask again. Still we will convert. So ratio is like that. If we want to do business, conversion will be 100%. If you are not matching their price or maybe some delivery or technical, of course, then it will have to stop earlier also during feasibility study. If we are supplying sample, then sometime they will took like six months, some three month or some one year, but business will be there. Okay. Is it safe to assume that if we are started to supply samples, then 100% we will be supplying to them maybe after their approval cycle? Yes. Okay. Sometime sample is maybe different geometry or different combination. It will take time. Yes. Okay, sir. And next question is on the realization part. Can you explain what's the realization difference per unit of our old products versus the new products? No, I didn't get your question, actually. What would be the selling price range, the old products that we were supplying earlier, and also the new products that we are about to supply in the coming years? It will actually, like different product to product, actually. Now in our heat exchanger, we are selling like single piece, maybe INR 500 and maximum I think around INR 15 lakh. You can see the range, INR 500 to INR 15 lakh. And new product, like our existing product of course will remain same. And the Bar & Plate also I think INR 20,000 to INR 5 lakh or INR 6 lakh. And then this refrigeration is the last. It one piece around INR 500 to INR 600 only, because the commodity is less. Okay, sir. We were also planning to set up some warehouses in Europe and U.S. Sorry to interrupt. Ladies and gentlemen, please wait. The line for the management has been disconnected. Please wait till we reconnect them again. We have the management back with us. Sir, please go ahead. I think last question I already replied. Maybe new question. Shivkumar Prajapati, last question was there. Yes, sir. Am I audible? Yes, yes. Yes. Sir, we had plans to set up warehouses in Europe and U.S. to cater their markets. Can you share some updates on the same? That Europe, we are under discussion with first 3PL, like third party logistic. For U.S.A., we are looking, but still we are not concluding. First year, we are going to conclude a salesperson for U.S. We had already into for five to six person from North America and from India and Dubai also. In next couple of week, I think we will conclude for first salesperson, and then we are out. By end of this year, I think we complete both. Okay. And sir, we supply to Schneider, and we do around INR 50 odd crores of business with them. I think these figures are outdated. I mean, for the last year. So for this year, any numbers that you have? Like what is the business size we did with Schneider for this year? So Schneider, like we are doing our share is around 90%-95% of their total business. So growth is there. But we not break out customer-wise till now. So once we will do, then I will share. Okay? Okay. And sir, we also got the approvals for their Europe market as well from Schneider. So did we start to supply over there? Yes. So last before three week, their quality team and their quality expert, they visited us and they audit us for I think three days continue. Then they sent the report, like that they approved. So now pilot load is already complete. We will supply maybe next week. So once pilot load they will use, then they will open for mass production. And sir, what is your guidance for this year? Like what would be the exports revenue? Any ballpark numbers? So this, from existing facility, it will remain same, because we are almost on 100% of utilization. For new facility, we will going to add new customer and increase capacity from existing customer. We will supply from a new facility. So of course, export growth will be there. But, in terms of percentage, I cannot clear now. However, next call we can be clear. And sir, just one last question. What are expectations from this railway buses and metro segment for the next two years? So as of now, we are supplying heat exchanger only, so growth is there. But we are expecting maybe 10% to 15% growth on existing business, not much, because they are not much percentage of our total business to that segment. But some tender if they will got our existing customer, of course, automatically we will receive. So as of now, on the same percentage of 10% to 15% we are supplying to them. Okay, sir. And sir, this is the last one. It is regarding liquid cooling. So, do our heat exchangers get used in these segments as well for this data center and all? So liquid cooling direct, there is no use, but backside- Okay there is use of heat exchanger as well. Yes. Okay, sir. Thank you so much, sir. Best of luck. Thank you. Thank you very much. The next question is from the line of Heta from Monarch AIF. Please go ahead. Yeah. Hi, sir. Sir, I just had two quick questions. Firstly, with respect to your revenues from the U.S. market, I believe your nine-month FY 2025 presentation stated that the U.S. revenues are around INR 6 crores. Whereas when we see the full year FY 2025 presentation, it says the revenue is less than INR 1 crore. Could you help me understand the same? No, I am unable to understand. Can you repeat again your question? Yes. When I see the geographical revenue split, for nine months, FY 2025, the revenue from U.S. is stated as INR 6 crores. Whereas when I see for the entire year FY 2025, the revenue is stated as less than one crore. Maybe there is some correction need, I think, I need to check. But we added one customer from Canada as well, so we received some good business. However, this data, I think need to check. I am not sure. Okay. So it is there in your audited financials as well in the geographical split. Maybe we have to check and then come back to you again. Okay? Sure, sir. Sure. And sir, second thing, could you help me understand how the net working capital will flow in FY 2026? Sorry? The net working capital, the number of days for FY 2026. First question, I think there is some because we have American, first is our INR 8.65 crore is from American, and then USA they return INR 85 lakh. Right? Yes. Actually, USA also consider. So actually they consider that maybe one customer, as per their invoice, maybe that's another one. So that both maybe need to club or don't. So that is the confusion only. I think you're right. Right? Okay, sure. And your next question. The next question is, how would the net working capital cycle be for FY 2026? This, actually now some manufacturer already started, but still we are unable to take from them because of quality or maybe their prices or their delivery. Still we are importing. However, government, like BIS also implement in last quarter, so there is difficulty. That's why we able to increase our inventory. I think in next six months, once their manufacturer able to supply from locally, then it will change. Otherwise, in coming next six months, it will remain same. So the number of days would be around 115 to 120 days? Yes. As of now, it is around 100 plus. Okay. All right. Thank you so much. Thank you very much. The next question is from the line of Soumya from Insightful Investments. Please go ahead. Hi, sir. Thank you for the opportunity. I just had to recheck something. You spoke about PLI benefit, and you said that for 3 years it will be 6%, 5% and 4%. Am I right? Yes. After that you said for the next 10 years it will be 1.5%. Is that so? Yes. Precisely 1.56%. Okay. Sir, and also another. I just missed your point on the BLW product that you are currently sort of supplying to them. Could you please just repeat that? BLW, right? Yeah. BLW and CL BLW, there is many other manufacturer also, they use oil cooler. Our product is used mainly in electric locomotive. That is a tender-based business, and we receive tender, and then we have to apply, and then reverse auction is there. Seven to eight vendor are also there. Whatever business, as of now, they are asking in a year around 3,000 piece. Whatever we can get, we can supply. Other than BLW, we can able to supply to other OEMs, like off-road vehicles and heavy equipments or for lift trucks and compressors. There is also multiple customers. We are under discussing with them. That is all things belong to this bar-and-plate heat exchanger. Okay. All right. Thank you, sir. Thank you very much. The next question is from the line of Reeth Ranawat from Avendus Capital. Please go ahead. Yeah. I had again specific questions. Are we looking for the fundraise for the remaining INR 650 crores of MoU from the RITA? To Bhavesh sir. As of now, we've not decided. However, we have some other thing also under discussion, but not materialized, like to expand the business in some other geographical or some new business we're going to add. This we will decide in next couple of week, and then we will be able to answer that question. Okay. All right. Thank you. Thank you very much. This is the last question. I now hand the conference over to management for closing comments. Thanks to all for attending this call. I think this, compared to last call to this call, we have three things I want to mention again. One is the SAP, because SAP is one of the best software for the world to control our things, like in terms of inventory, production of course, and the transparency in the system. Second, we got the approval from BLW. And third one, we received the PLI approval today only. Of course, not last but least, like TRL, we are also going for investing in R&D to expand our product worldwide and to give the right quality and right price. Thank you. Thank you very much. On behalf of Dolat Capital Markets Private Limited, that concludes this conference. Thank you for joining us and you may now disconnect your line.