Ladies and gentlemen, good day and welcome to Ion Exchange (India) Limited's Q3 and nine months FY 2025 earnings conference call hosted by Valorem Advisors. 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 an operator by pressing star then zero on your touchtone phone. I now hand the conference over to Ms. Nupur Jain Kunia from Valorem Advisors. Thank you, and over to you, ma'am. Good afternoon, everyone, and a very warm welcome to you all. My name is Nupur Jain Kunia from Valorem Advisors. We represent the investor relations of Ion Exchange (India) Limited. On behalf of the company and Valorem Advisors, I would like to thank you all for participating in the company's earnings conference call for the third quarter and nine months ended of financial year 2025. Before we begin, let me mention a short cautionary statement. Some of the statements made in today's earnings call may be forward-looking in nature. Such forward-looking statements are subject to risk and uncertainty, which could cause actual results to differ from those anticipated. Such statements are based on management belief as well as assumptions made by information currently available to management. Audiences are cautioned not to place undue reliance on these forward-looking statements in making any investment decision. The purpose of today's earnings call is purely to educate and bring awareness about the company's fundamental business and financial quarter under review. Let me now introduce you to the management participating with us in today's earnings call and hand it over to them for opening remarks. We have with us Mr. Aankur Patni, Vice Chairman; Mr. Vasant Naik, Group Chief Financial Officer; Mr. N. M. Ranadive, Group Head of Financial Planning and Risk Management; and Mr. Milind Puranik, Company Secretary of the company. Without any further delay, I request Mr. Vasant Naik to start with his opening remarks. Thank you, and over to you, sir. Thank you, Nupur. Good afternoon, everybody. It is a pleasure to welcome you all to the earnings conference call for the third quarter and nine months ended of financial year 2025. For the third quarter under review on a consolidated basis, the company reported operating income of INR 6,905 million, an increase of around 25% year-on-year. The EBITDA reported was INR 754 million, an increase of around 7% year-on-year. While the margin stood at 10.92% and the profit was INR 496 million, increase of 5% year-on-year, while the PAT margin was around 7.18%. For the nine months ended for the financial year 2025, the company reported an operating income of INR 190.26 million, an increase of around 22% year-on-year. The EBITDA reported was INR 2,080 million, representing an increase of around 16%, while the EBITDA margin stood at 10.93% with a net profit of INR 1,450 million, an increase of 18% year-on-year, while the PAT margin was around 7.62%. Let us take you through the quarterly segmented performance on a consolidated basis. In the engineering division, the revenue for the quarter was INR 4,301 million, an increase of around 34% year-on-year. The EBIT for this segment was INR 257 million, an increase of 7% year-on-year. The increase in turnover was largely due to the improved execution of some large EPC contracts. The execution of the UP Jal Nigam contract remained muted. The segment saw a modest order inflow during the quarter and the domestic inquiry bank remained steady. At the end of the Q3 of financial year 2025, the total order book for the engineering division stood at INR 3,405 crores. Coming to the chemical segment, the revenue for the quarter was INR 1,993 million, an increase of around 6% year-on-year. The EBIT was INR 523 million, an increase of 6%, while the segment continued to show improvement in both turnover and margins. For the consumer product segment, the revenue for the quarter stood at INR 772 million, which has increased by around 23% year-on-year. The losses for the quarter was INR 29 million compared to loss of INR 15 million in the same period of the previous year. This segment continues to witness consistent turnover growth driven by greater penetration and acceptance of the company's product profile. With this, I conclude the opening remarks. We can now open the floor to the question and answer session. 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 their touch-tone telephone. If you wish to withdraw 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. We have our first question from the line of Deepak from Sundaram Mutual Fund. Please go ahead. Yeah, thanks. Am I audible? Yes, Sundaram. You can go ahead. Yeah. First on engineering. This quarter we had a good execution, which led to that 34% YOY sales growth in engineering. Our new order inflow was little muted as compared to previous quarter. Could you please highlight in an engineering project in both domestic as well as international market, from which sector are we witnessing more order inquiries? Is it the core sector like steel, power, oil and gas, which are typically larger sales order? Or is it the smaller ticket size from various other sector? I just wanted to understand from where are we seeing more visibility and conversions. Sure. On a global level, it is across the board, but yes, the inquiry book that we carry would be heavier on the core sectors. Even in terms of order conversions, it is across the board. The bigger ticket ones have not seen much of attraction during the current period. That's why you see that the order book per se, has not built up that much. On the inquiry book, the concentration is across the board, but is also the core sector. Okay. Sir, any update like, for example, any order inquiries we are getting for sunrise industry like data centers or semiconductor? Because there is a lot of traction which is happening there. Yes, there are several ongoing discussion on these sectors. The green hydrogen piece, the biotechnology piece, the semiconductors, the data centers, et al. We are certainly expecting that in the course of the next few quarters, we will see a good flow of orders from these. Okay. Sir, now coming to engineering margin. This quarter on year-over-year, we saw a 150 basis point decrease in the EBIT margin. Could you please elaborate on that? Are we sacrificing the margin to fuel growth or is it that the competition intensity is becoming higher? Or is it more to do with higher execution of that one onerous order, which we spoke about in the last quarter? What is happening there from margin front and for the whole year as well as Q4, what is the revenue and EBITDA margin guidance are we giving? There are two impacts which I can talk about largely. One is to do with this contract which you just mentioned about. That continues to have an impact of roughly 150 to 200 basis points in a purge on the overall engineering revenue. That's depressing the margin quite a bit. As also the mix of project that keeps changing from year to year. In some years, you have the mix favor the slightly higher margin, the other years the mix may favor a slightly lower margin. That impact is also there. The primary reason for the depressed margin numbers is that specific onerous contract. Okay. Sir, for this FY 2025 and let's say next year, what is our guidance in terms of Engineering division sales growth and margins? Engineering should see 15%-20% growth. In terms of margin, unfortunately, because of the way things have been and as far as we can see, we will be lower than the last year. The kind of visibility that we have that overall dip should be in the region of roughly about 1 percentage point. Okay. Got it. You are talking about FY 2025, right? Versus FY 2024. Yes. Okay, got it. Sir, coming to Chemical division, that Roha project of INR 400 crore, could you please elaborate of that INR 400 crore plant, how much was spent till December? I'll ask Vasant to fill in on that, please. Just upwards of 50% of the total project cost has been spent as of December. Okay. That is including both the actual capacity as well as backward integration, right? Yes. I mean, the INR 400 crores includes the backward integration part also. sir, the timeline of the commercial production in Q1 of FY 2026, that remains intact, right? Yes. We are expecting Q1 with a possibility of switching to Q2. Thereabouts, not much more. sir, at, let's say, optimal utilization from this Roha plant, what could be our ROC profile? Whenever that happens three or four years down the line. The overall margins that we have been looking at from the chemical division that visibility is very much available. As we have been indicating, the asset turnover that we expect is on a figure of INR 275 crores, roughly two and a half times. Sir, two questions I have for Vasant, sir. You indicated 50%, a little over that has been spent for this Roha plant. If I recall correctly, 20% was supposed to be financed through internal accrual and 80% was through debt. Since we have spent more than 50%, our interest outflow seems to be very flat. What explains that? Is more of the CapEx has been funded through internal accrual rather than debt, which was initially envisaged? No, it is not the case. Our contribution for the total project remains at 20% of the project cost. Since the project is not yet commissioned, the interest expense is getting capitalized in the books. As and when the commercial production starts, it will get reflected in the financials in the P&L. Okay. Sir, one last question from my end. Just one bookkeeping question. I have noticed in several past years, the Q4, the tax rate suddenly drops from, let us say, 27%-28% to around 20%-23%. Can you explain why that happens in Q4 every quarter? I mean, this has been the trend since last three, four years. Are you talking of the consolidated numbers or the- Consolidated. The consolidated numbers, the tax rate per se, you cannot really take that because it is a summation of the tax across the 21 subsidiaries and the group companies. It is not a percentage. Individual company's tax rate gets summated, so it will not be a fair reflection to see at the totality level, the percentages. Okay. The reason for this drop in tax rate in Q4 of the last three, four years, more to do with contribution from Indian operation? Means how should I look at it? Yes, because generally the fourth quarter, the domestic companies show a much better turnover as well as on the bottom line. Maybe that can be one of the reasons that can be attributed to the distortion in the tax rates. Okay. Thank you so much, sir. Thank you for all the clarifications. Thank you. We have our next question from the line of Mike Sell from Equity. Please go ahead. Good afternoon. Thank you for the call. I have two questions. Could you please give us an update on the ongoing litigation about the IEEFL subsidiary? I think there has been some progress in the quarter. Secondly, the onerous contract, when do you think that will be completed? Thank you. Let me first answer the second one. We are expecting this contract to run into, likely look at substantially completing the invoicing in the first half of the 2025, 2026 year. As far as the litigation is concerned, I will ask Mr. Ranadive and Mr. Puranik to fill in. The Ion Exchange Enviro Farms matter, which is a SEBI-related matter, we have appealed the matter at Securities Appellate Tribunal. SEBI has filed a reply in the matter. The matter is now listed for 10th February for hearing. Any other clarification required? Do we think that there will be a resolution or this is something that could continue for some more years before we get to a satisfactory resolution? If the judiciary accepts our stand, the matter will end there. Are you optimistic about the outcome or it could be either way? Yeah, we are always optimistic about the legal stand. Ultimately, the judiciary has to apply its mind and take a decision. Thank you. If it goes against you can appeal further? Yes. There is an appeal available at the Supreme Court of India. Lovely. Thank you for your help. Congratulations. Bye-bye. Thank you. Thank you. We have our next question from the line of Chetan Vora from Abacus Asset Manager. Please go ahead. Yeah, good afternoon, sir. Sir, as mentioned that you told that legacy project, which is having a cost overrun, will be getting completed by first quarter FY 2020. Is it right? Hello? Yeah. Yes. It's going to spill into the next financial year, and we expect first half to be the kind of period. Okay. Can you quantify that what was the size of that project and how much that has been completed and what margins we have made on that project? As we've been mentioning, this is having a negative impact on the overall margins of the engineering division. There is still some bit left for this to be executed, that's why it's spilling into the next year in terms of impact. We have not been giving the contract name and other specifics of the contract, unfortunately. Would it be possible to highlight, okay, what went wrong in this project and when it was bidded, and when we had got this project, basically, which year, and why it has faced such a cost overrun wherein we have seen such cost overruns? This was to do with the specifics of the site. Unfortunately, we did encounter significant overruns specifically on the civil side. Vasanth, please correct me if I'm going wrong on the period, but it's around one-and-a-half year old contract. It is a domestic contract? It is a domestic EPC contract. Okay. Can you quantify why this UP project execution is on a slow front, wherein we were supposed to complete this UP project by the end of this year, right? If I'm not wrong. Yes. The project is facing constraints in terms of funding from the government. As we had spoken about this in the last quarter's call, that there was an expectation of improved funding and speed of execution of this contract. Unfortunately, the constraint on funds remain, as also relatively slow process of approvals and documentation, which is hampering the pace at which we have been able to invoice. We still remain hopeful that it would pick up pace soon. That's not something I am now being able to give you an accurate forecast of, as to how quickly the funding pace would improve and the other constraints will go away. Understood. We, however, hope that the second half of this financial year, we will be able to invoice more than what we did in the first half. Still it will be quite low because second half is anyways good vis-a-vis the first half, certainly. Would like to understand, if the project defers in execution, what happens if there is a cost escalation next year, whether we will be able to pass it on or we will have to absorb it? We have got extensions from the government, we continue to apply to the government for further extensions because of the way that the contract is getting extended. The impact of an extended stay certainly does have a play. We are not being able to bill while we maintain the teams at sites and infrastructure is being retained. That impact certainly cannot be negated. However, the overall margins on the contract remain within what we have been showing for this over the last couple of years. Mm-hmm. On the engineering side, this year you are saying that the margins will be lower than FY 2024, and you said by 100 basis points lower, right? Yes. Roughly, that is how it looks. On the execution, we are seeing that the momentum will be sustained on the execution front. Yes. As I said, around 15%-20% growth is what we are hoping to get. What happens with the chemical side next year? Whether that capacity increase will be helping it out or whether we'll be growing in the same rate, in the range of 12%-15% as what we have seen this year? We are looking at using up that additional capacity over a period of three to four years, and therefore, there would be an increased rate at which this deployment of capacity will happen and its impact on our overall top line. As I said, we'll not necessarily get the entire year's benefit as the capacity gets commissioned in the first quarter and with a slight chance of slipping a little bit into the second one. All right. Sir, we used to make the margins on the engineering side on an annual basis in the range of 9% or 10%, but since last two years it has been 8% and this year it will be lower than 8%. How do we see this trajectory on the engineering side? There are a couple of things. One is to do with the kind of contracts that we get and the margins associated therewith. As we've been speaking about this one rogue contract which has been depressing the overall margins. Besides that, in general, we do continue to get good contracts on the international market, and those are at improved levels of margins as compared to what you see for the overall segment. As the ratios for these higher margin contracts, both international and domestic, improve in the future quarters, I am quite hopeful that the margin percentages will improve. My last question from my side. The next year you are saying the project which is facing cost overruns will be getting over by first half of next year. How do we see the margin trajectory for the next year as a whole for the engineering side? Whether it will be better than FY 2025, it will be lower than or similar to FY 2025? Hopefully, it will be better. However, I can't give you very exact guidance at this point of time. I hope that I'll be able to do that in the coming quarters. My expectation is it's likely to be much better than what you have seen in the current year. Okay, sir. Thanks a lot. That is all from my side. Thank you. Thank you. We have our next question from the line of Pratik Kothari from Unique PMS. Please go ahead. Yes, hi. Good afternoon, and thank you. Sir, first question, again on the UP project. Given the actual outcome is going much slower than what our anticipation was or the earlier timeline that we were anticipating. I believe in past, we were mentioning that we were kind of investing a lot in terms of manpower, et cetera, to kind of do this very quickly. Just one comment on then shouldn't this be hurting our margins as well? Apart from their onerous contract. Also second, this expectation that if we get all the approvals or invoicing in line, we should be able to do this very quickly. How easy or hard it will be for us to kind of ramp the execution up very quickly if asked or required to? As I responded to the previous question also, yes, the continued deployment of our resources and the revenues or the invoicing not happening at that pace is having an impact. Again, as I mentioned, that our overall margins remain in line with what we have been showing against this contract over the last few quarters. In terms of being able to ramp up or with the increased fund flow execute it at a faster pace, we are very much able to do that. The only unknown is when this ramp-up of funding would happen and how we would get all the documentation and approvals at a faster pace. Correct. Sir, I understand this quarter maybe our order flow were a bit modest, but in terms of from a domestic order inquiry pipeline, the conversion, et cetera, do you see any stark change in kind of the conversation that you're having with your end clients from the domestic angle? Yes. We are seeing a good flow of inquiries and higher quality of inquiries in terms of the execution profile as well as margin profile coming from the international market. We remain very excited about the prospects in the near term and the medium term from the international market. In terms of the domestic market, yes, the competitive intensity keeps varying from period to period and we are hoping that soon enough we should be able to get a few orders on the domestic front also. Correct. Sir, last question on the chemical. We have been at this sub slightly under INR 200 crores range for the last three, four quarters, and we have a large capacity also which will come in say in the next six, nine months. Just one in terms of demand, our plan to ramp this up, given even in our current capacity or current facility, we have some capacity which is left, and then there's this additional one which is coming in a few months down the line. Just some thoughts, color on how do we plan to ramp it up? There are several conversations in place with large consumers of the product, we are expecting that once the facility is ready to produce, we will sign several of these contracts which ensure that the pace at which we occupy this capacity is relatively rapid. We are also adapting the two plants to make sure that we make the best use of the facilities available and modify the product mix coming out of each facility to ensure that overall, the maximization of revenue and profits can be achieved. Correct. In terms of product approval or that customer kind of approving us as a company, that is all done and either taken care of. It's just ramping up of incremental volume that they would place with us. The product approvals and to ensure that we are able to meet their quantity as well as quality requirements, that's a process which is in some cases done, in some cases underway, we are therefore hoping that by the time we execute this project in full and are ready for commercialization, we will have several of these long-term arrangements in place. Correct. Great. Thank you and all the best, sir. Thank you. Thank you. We have our next question from the line of Ajit Lakhaney from Unifi. Please go ahead. Mr. Bhatti, I just want to understand the consumer segment. You've not spoken about this in the call. Can you please qualify, where is this growth really coming from? Is it coming from the commercial segments or the residential segments? Also, while a lot of this is product sale, how much of the support revenues is built out in this INR 300 crore run rate, which we are at today from a revenue standpoint? There is a good mix of commercial as well as residential in this overall revenue that you see. I would say a significant portion is coming from the residential market, as the kind of products that we have been launching of late, they are targeted at slightly more premium segments, which are flats, apartment owners, et cetera. In terms of the support or service revenue as a part of the overall thing, I would ask Vasant to share with you some guidance on it. Yeah, in the consumer product segment, the services portion will be in the region of around 20%-25% range. Okay. Is it fair to assume that the services portion has a significantly higher margin, but today you're choosing to redeploy the product margins as well as the services margin in building out the business to your desired scale of INR 500 crores before you start to show any EBITDA in that segment? Yes, we are deploying the margins back and investing in various places, including people, to ensure that we ramp up at a faster pace. Okay. Any visibility that you can provide as to, in terms of number of field force that you have put in place, touch points that have been covered, which gives us the visibility to reach that INR 500 crore number from the INR 300 crore number today that you're talking about? We've not been sharing that data, but the pace at which we are increasing our field force or our reach into the market in terms of distributors, channels, et cetera, is quite rapid. We would be several times of where we were maybe two or three years back. We will continue to increase the pace at which we are expanding because, as you rightly mentioned, we are looking at a significantly higher revenue number than where we stand today. Got it. Mr. Bhatti, next is on the overall margin outlook. I want to understand your reason for slightly better confidence for next year on the margin front. Because as I stand it, and what you have said in the call is the first half will be a drag on account of the one-time large project, which are hopefully to continue. The UP is continuing to drag resources and infrastructure, so there's a cost which we're not getting compensated. Third is, as the new Roha facility comes up, there will be employee cost, OPEX cost that we'll have to build ahead before the ramp-up really takes place. Our ability to really extract better margins for next year, could you tell me where you get the confidence? The question was on engineering margins. Second, in terms of this low contract that we've been discussing, as well as in case of UP project, the expectation is that we will be able to increase the pace at which we are invoicing these, and that would give us, for UP project, certainly the margins would flow as we execute the project. For the other project, its related percentage as in the pie of the overall engineering revenue would then come down. In any case, I am not expecting this drag to continue right through the next year. The remaining portion after this contract is exhausted would give us a higher margin number compared to where we stand today. That would hopefully be able to give us a slightly higher number than where we stand today. In terms of the overall company margin and impact of Roha on in terms of interest and depreciation and all of that cost, that's to be expected. We're also, as we mentioned just a while back, looking to close several discussions with large buyers so that our capacity utilization in the first year itself is reasonably good and we don't end up creating a massive negative impact of this depreciation and interest burden. Thank you for that. It's very clear. Mr. Bhatti, could you just speak a little bit about the Portuguese Mapril acquisition that you have done? It's been some time, could you just call out that how is it playing out? I remember from the call-out then that it was primarily a channel to distribute to Europe. Have we made progress on that front? Could you just call out a little more on Mapril, please? Yes, we've made progress. The subsidiary is now being used as a base to push all our products, chemicals as well as engineering. The response that we seem to be getting from the European market is a preference to have a European company rather than coming out of any other location. That seems to be giving us the advantage that we were hoping for. The pace at which we were expecting the engineering side of business to pick up from that subsidiary, there we are seeing good developments happening. Hopefully, we will be able to deliver a few engineering contracts from that subsidiary in the near term. For the chemical piece, there was an inherent revenue in that subsidiary when we acquired it, and we've been able to add volumes from our sales of resins as well as other chemicals during the past few months. We are also seeing a significant number of discussions with buyers in that region for further improving this volume. Yes, the acquisition seems to be playing out reasonably okay. We would have hoped for even better, that's something which we remain hopeful will play out over the next few months. Perfect. Mr. Patni, just finally, in the fourth quarter, you had called out for an overall revenue growth of closer to 15%, which would imply about INR 800 crores of execution in fourth quarter, which is typically our seasonally the strongest quarter. Are we on course to achieving that? For the company as a whole, we are looking at a 15%-20% kind of a number. Got it, sir. Thank you. All the best. Thank you. Thank you. We have our next question from the line of Nishant Gupta from Minerva Global Capital. Please go ahead. Hi. Thank you for the opportunity, sir. Sure. My first question is, in the chemical segment, who are your direct competitors? The chemical segment, for resins, we compete against global majors like DuPont, then there is Ecolab, and then we are also competing against domestic competition, specifically Thermax, which is one of the larger manufacturers in India. Got it, sir. Thank you. Sir, for the bid pipeline of INR 8,648 crore, what would be a conversion ratio and the execution timeline for that? Please come again. For the bid pipeline of INR 8,648 crore, what would be the conversion ratio and typical execution timeline of that? We normally expect a conversion of 15% and thereabouts. In terms of once we get the order, the average period of the order book tends to be between two to three years. Got it, sir. One final question. The working capital days have been inching upwards. What would be a moderate assumption going forward, that would be reasonable? I think in terms of the working capital increase compared to a few years back, the shift has been the quantum of advance that we've been carrying from the customers, and there were a few large contracts where there were significant amount of advances sitting in the books, which had made the working capital slightly lopsided. As we see the days of the various asset groups within working capital, this is relatively more normalized than what it was a few years back. Got it, sir. Thank you, sir, and all the best. Thank you. Thank you. We have our next question from the line of Julien from Amiral Gestion. Please go ahead. Hello, sir. Am I audible? Yes, you are. Hello. Okay. I just have one question also on the working capital. I noticed that maybe on the segmental basis, engineering net asset is kind of flat, which means that on a two-up two basis, asset is flat, liability is kind of flat, which implies that actually, probably the working capital for the segment has not come down, despite the fact that we are supposed to collect some receivables for the UP project. Is this an accurate observation? If not, could you just help me understand maybe on the collection of receivables this quarter? Thank you. I'll ask Vasant to comment on that question. Please, Vasant. In terms of the working capital days, what we have seen in the last two quarters, they are basically roughly at the same level what we have been seeing. Specifically coming to the engineering segment, the engineering segment has grown by almost 36% on a year-on-year basis. That accounts for the increase in terms of the absolute number of the working capital, which is deployed in the business. Specifically to the UP contract, yes, there has been some delays in the collection from the UP contract that was referred to in our earlier con call. Overall, the working capital days for the segment as a whole is largely stable at what we have seen in the September and March level. Okay. May I just follow on the UP project. You mentioned there have been some delays in the collection of the receivables. When would that be resolved? As we subsequently bill more projects on the UP side, are we expecting to face the same number of days for collection of the bills? If I understand the question, you are asking whether what is the possibility of recovery of the debtors from UP project. That is what you refer to, right? Yes, that's the first part of the question. Yeah. The expectation is that in next month, we should get some positive movement on the funding for this UP project. Consequentially, we do expect the execution of this contract to pick up in the coming months. Okay. If you were to execute the project in the coming months, we'll start billing the UP government for the execution of the project. Are we going to face the same issue in terms of the funds not being released to us afterwards? Any commentary around that? We do hope that once the funding resumes, our expectation is the funding should normalize. As we have seen in the past also, it is very difficult to predict the funding from a government project. We are also being cautious as far as the execution is concerned. Rather than when the funding does improve, the execution will improve on this project. Mm-hmm. Okay. Thank you so much. Thank you. We have our next question from the line of Rahil Shah from Crown Capital. Please go ahead. Hi, sir. Good afternoon. Just one question overall for the company, if you can share or iterate the guidance in terms of revenue and EBITDA margins for FY 2025 and FY 2026. This order book that you have for around INR 3,000 product crore for the engineering as a whole, what's the execution period over there? Thank you. The execution period is between roughly around two years and slightly more. In terms of the expected growth revenues for the year, we are looking at between 15%-20% growth. In terms of the margins, as we spoke about, we are expecting to take a hit compared to last year on the engineering margin percentages. Overall for the company, I don't think we'll be able to reach the same levels in terms of percentage as we did last year. We will be falling slightly short of it. Slightly short of the margins, you mean, right? The margin percentages which we achieved last year, we'll be slightly short of that. Short of that. Okay. This 15%-20% growth is overall for the company, right? For next year as well. Are you targeting that? For 2024, 2025, 15%-20% is what we are looking at. For 2025, 2026, I'm not calling out a number as yet. Okay. For the moment, frankly, we'll have to look at our order books and the general trajectory of growth. I will come out with a more clearer thought and guidance on it in the coming period. Right. Okay. Got it. Thank you, and all the best. Thank you. Thank you. We have our next question from the line of Saket Kapoor from Kapoor & Co. Please go ahead. Yeah. Namaskar, sir, and thank you for the opportunity. Sir, firstly, a clarification. You mentioned that the legacy order, which is dampening our margins, that spillover will happen till the first quarter of the next financial year, and the margin dent will be on a whole basis to the tune of 200 basis points. This is what the conclusion is? Yes, I was saying that this particular contract would spill over into the next financial year, roughly the first half of the next financial year. The overall impact that we have seen of this on our engineering margins is to the tune of 15 to 20 to 100 basis points, slightly in that region and above. Sir, out of the total revenue, which we have booked for the engineering segment of INR 417 crore, if we take the standalone numbers, what would be a ballpark number which would have constituted to the execution of the projects which you are talking about? While we are not giving out the specifics of the contract and in detailed breakup of the constituents of the revenue. However, as I mentioned, the impact is of 150 to 200 is on the overall engineering revenue. What you see for the entire engineering segment, is 150 to 200 basis points of that. Correct, sir. Sir, just to not harp on more, but is the project being stalled right now and that is the reason it will take longer time or what is the reason why it will take another, I think so three quarters to culminate or two quarters rather to culminate? One of the reasons is that we are trying to make sure that we do as much as is possible to curtail the damage. No, it is not stalled. We are committed to delivering on the contract and complete it. Yes, we are trying whatever means available to us to make sure that if we can recover some of these costs, we will certainly make an attempt. Okay. One more question and then for the UP project. Sir, generally, what we looked at, whenever these size of projects are there. There are packages in which there are four, five packages which are distributed in order to reduce the client specification risk also. This particular project is also constituting other packages or are we the sole people managing the entire project? You're asking for the UP project? Both one, sir. This one which is denting our margins and the UP project also. This is a large EPC project which is being executed by the customer and we are delivering a part of that large project. Whereas for the UP contract, the government had given out clusters of villages for which we had to deliver a certain project and which had. A DPR was created and certain BOM were moved. The bill of material was made against it, and we were supposed to deliver the material as well as the project. Of course, as the project gets executed, the ground level reality of UP may not necessarily be right according to what the DPR was, and there are changes that we are seeing. As such, for each village and the cluster, we are the ones who are delivering this entire piece. We're not working as a subcontractor to anyone. Okay. Sir, when we look at the unexecuted portion, it was INR 751 crore and this quarter it is INR 730 including the Delhi part which you generally club in your investor presentation. There's hardly any execution that happened. Is that understanding correct for this quarter? Let me ask Vasan to give you the numbers for the quarter. For the nine months also, sir. What portion of the UP contract got executed? For the quarter, we did INR 33 crore and for the nine months, we did INR 91 crore. Okay. The pending portion is how much, sir? The pending portion is around INR 719 crore. INR 719 crore. Sir for this quarter, for March, what is the likelihood? Please conclude. Yes, I'm concluding, my friend. Just a follow-up on that. Which we have addressed. We have qualified by saying that this execution is dependent on the funding which we get from the UP government. Right. Our team is on the ground. As and when the funding comes through, we do expect the increased traction to take this in the execution. We cannot have any ballpark number for this quarter. Anyway, sir, all the best to the team, sir. We have hope to have a good execution quarter, sir. Generally, fourth is the best quarter. All the best to the team, sir. Thank you. Thank you. Thank you. We have our next question from the line of Tej Patel from Niveshaay. Please go ahead. Thank you so much for the opportunity. I'm new to understanding the company. Just two quick questions. Number 1 is, what portion of our engineering revenue generally comes from the industrial segment? Within industrial, also, how much is ZLD? The follow-up question would be, if you could just provide your brief outlook on the same on the industrial segment, especially the ZLD. Has the traction increasing? Has the government taken any step probably which is increasing the adoption in the ZLD? I want this perspective, especially from the domestic point of view. Thank you. Let me answer the last bit first. The effort of the government has certainly been to improve the level of effort which the industry or the government itself is making on the front of environment. ZLD is one of the technologies which government is trying to push. There are also several other ways in which government is trying to ensure that the environmental consciousness of the industry goes up. The implementation of that and the monitoring of that has been improving over a period of time. You should expect that in times to come, the technologies, not just ZLD, others, which are focused towards improving the state of the environment, the state of water and wastewater, as also the reuse of water from sources which were otherwise untapped. All of these would work in coming times. In terms of the collective impact of all of this on the ecosystem of companies like ours, we do expect that there is going to be increased flow of opportunities from the government sector, the municipal sector, as well as from the residential and commercial sector, which would all be required to go in for more and more stringent practices. That's as far as that side is concerned. The split of the inquiry book and the invoicing between government and the non-government, I'll ask Vasant to deliver. In terms of the split of the invoicing from the government orders in the total engineering segment, it will be in the region of around 10%, because as we have mentioned, the execution of the UP contract has been muted in this year. In terms of the government contract forming part of my total inquiry bank, it will be less than 5%. Got it. In the non-government part, our major technology which we are deploying is currently ZLD? No, ZLD is one of the components which we work on and obviously which is prescribed in some areas, but there are several more which are worked on. ZLD is one of them. Is it correct to say ZLD would be less than 10% for you as of now? It varies from contract to contract and segment to segment, and it would also vary from period to period. Got it. No problem. Thank you. Thank you. Thank you. We have our next question from the line of Omkar Jagir, an individual investor. Please go ahead. Sir, thanks for taking my questions. I'm having three questions. Let me ask my two questions first. My first question is: as we are in the back end of the financial year, what engineering business orders are we expecting in next 50 to 60 working days? This is question number one. Question number two: regarding chemical business, in the Q1 con call also, you said we are operating 65%-70% of the plant capacity, and there is a headroom for chemical business. Consistently we are doing INR 200 crore of revenue, consecutive three quarters. Why chemical revenue has stuck at INR 200 crore? There's still room for the plant capacity. Any specific reason for that? Are we expecting Roha plant from quarter one onwards, INR 40 crore-INR 50 crore revenue will come from quarter one, or it will start from quarter two only? The Roha revenues should start from the second quarter, where we still have to go through the final process of commissioning the plant. Once we have most of the things sorted out, we can then release a date. It could very well be the second part of the first quarter, or it could be the second quarter. In terms of the overall chemical segment number, I can tell you that we are looking to close the year with roughly around a 10%-15% growth. That's what we are expecting from the chemical segment as well. Sir, growth, whenever you say it's always YOY growth, I agree with you. Last time also I asked the same question, but overall, that plant capacity, as of now, we are utilizing 65%-70%. Is there a room to increase that capacity or capacity utilization will be up to 70% only for the current chemical plant? No, capacity utilization can certainly go up. I have pointed out earlier also that we keep making modular adjustments to our capacities. That is what gives a slightly different flavor to the mix and capacity each time that we would discuss this number. Therefore, we talk about the overall revenue numbers and growth rather than only look at that capacity number. Yes, there is a headroom available there, and which I have pointed out earlier also. As we expand capacity, for example, we would also be repurposing some of the existing facilities to make sure that we get a very good mix of revenues from both the plants, as also optimally use the capacities to generate both top line as well as bottom line. Some of the capacities that we have are product-centric. In the entire plant, there will be several reactors. Some of them would be dedicated to certain types of products, therefore, the capacity utilization gets dependent on a specific product line rather than of the entire capacity as a whole. That creates a different mix of capacity rather than a overall number, which is homogeneous. It's not a homogeneous number that we talk about when we say 65% capacity. Thank you. Ladies and gentlemen, this is all the time we have for today. I now hand the conference over to the management of Ion Exchange India Limited for closing comments. Over to you, sir. Thank you all for participating in this earnings conference call. I hope we have been able to answer your questions satisfactorily. If you have any further questions or would like to know more about the company, please reach out to our IR managers at Valorem Advisors. Thank you, and I wish everyone great evening. Thank you, sir. On behalf of Ion Exchange India Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line.