Ladies and gentlemen, good day and welcome to the Q2 and H1 FY 2025 Conference Call of GMM Pfaudler Ltd. As a reminder, all participants' 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 press star then zero on your touch-tone phone to reach the operator. Please note that this conference is being recorded. I now hand the conference over to Mr. Dhaval Rajput. Thank you, and over to you, sir. Thank you, Neha. Good evening, ladies and gentlemen. A very warm welcome to all of you into the Q2 FY 2025 Earnings Call of GMM Pfaudler Ltd. The earnings presentation was uploaded on the stock exchanges today and is also available on our website. Hope all of you had a chance to go through it. From the management, we have with us our Managing Director, Mr. Tarak Patel, our CEO of International Business, Mr. Thomas Kehl, our CEO of India Business, Mr. Aseem Joshi, our CFO of International Business, Mr. Alexander Poempner, our CFO of India Business, Mr. Manish Poddar, and our Compliance Officer, Ms. Mittal Mehta. We will give you a brief overview of the performance of the company, after which we will get into the Q&A. Before we begin with the overview, a brief disclaimer: the presentation that was uploaded on the stock exchanges and also available on our website, including our call discussion that will happen now, contains or may have certain forward-looking statements regarding our business prospects and profitability, which are subject to several risks and uncertainties. The actual results could materially differ from those in such forward-looking statements. I would now hand over the call to Mr. Manish Poddar to provide an overview of the performance. Over to you, Manish. Thank you, Dhaval. Good evening, all. Sharing with you some insights on the quarterly performance. On the consolidated basis, we reported a revenue of INR 805 crores with an EBITDA margin of 11.6% for Q2 of FY 2025. Our order intake stands at INR 762 crores for the quarter, and backlog stands at INR 1,773 crores. On a standalone basis, we have had a revenue of INR 208 crores with an EBITDA margin of 10.8%. While the P&L is more steady and stable, we would like to highlight a few points on the balance sheet and the cash flow front. As you note, our backlog is at INR 1,773 crores as of 30 September versus INR 1,689 crores as of 31 March, marginally higher. While our H2 revenue at INR 1,591 crores is marginally lower than the half-yearly average of FY 2024, which clocked the revenue for the full year at INR 3,446 crores. Now, a healthier backlog with a muted revenue directs towards higher shipments in the upcoming quarter. This is also visible in our balance sheet as follows. When we compare 30 September versus 31 March balance sheets, we observe our unbilled revenue and inventory have gone up by 28 and 32 crores, respectively. This highlights higher activity at the production floor. As a corollary, our customer advance receipts are also up by 30 crores. On the other hand, our receivables are down by 21 crores due to collection focus, which directs us to the cash flow statement. We have been steadily improving our cash flows. We have been steadily improving the FCF as a percentage to the business cash generation over the past three years. However, you would have observed for the past three years, our H1 performance for the year has generally been lower on the FCF generation perspective. This year, we have been able to generate 50% FCF as per slide 8 of the investor deck. We expect to remain on a healthier cash flow generation side for H2 and FCF. With that, we can open the call for the Q&A. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press * and 1 on their touch-tone telephone. If you wish to withdraw yourself from the question queue, you may press * and 2. Participants are requested to use handset 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 Sagar Shah from Spark Capital. Please go ahead. Good evening, sir, and congratulations for at least a stable set of numbers in this kind of environment. I have a couple of questions. So my first question was that sequentially we experienced a 3% growth in this quarter, but even though margins were steady, but going ahead, we guided for almost very healthier margins for this entire year, 13%-15%. So my first question was on the revenue front that how are things shaping up at least on the global level right now? Because we saw 3% sequential growth, and going forward, H2 has always been the strongest for GMM Pfaudler. So the kind of order intake that we have seen in this Q1 and Q2, and the kind of order backlog of around INR 1,773 crores going ahead, can we expect a better H2, better sequential growth in the H2? And if yes, then it will be led by which segments among the technologies? Yeah, hi. So I think a couple of points that you brought up are very important. So I think on a half-yearly basis, order intake has improved by about 18-20% odd. That means we definitely have a strong few quarters of order intake, which is definitely a good thing. And that's why we believe that the second half of the year can be a little bit stronger in terms of both revenue and margins. We have obviously businesses that have a much stronger backlog, especially businesses in India like the HE business has a backlog which probably will take us into Q2 or Q3 of next year. We have strong backlogs in mixing. We have strong backlogs obviously in some of the other non-glass-lined technologies where we have seen a shortfall and where we do see a little bit of stress in the glass-lined business, especially when it comes to the chemical, and when I say chemical, mainly the agrochemical sector where the investments have really dried up, right, and it does mean that there is probably a few more quarters of, I would say, muted investment. I don't see that turning around very quickly. We've spoken to a lot of our clients, customers, a lot of experts, industry experts as well, where we do believe that chemicals will turn, but I don't think it's going to happen very soon, so we do need some time here. I think what's important for us is that while we are at the bottom of the cycle, we work on internal kind of cost optimization. I think we've done a lot of good work around that. We currently have a major project going on here in India. We've taken some actions internationally as well to reduce costs, so we are looking internally, and hopefully when the market turns, we will be able to drive some of the growth and improvement in both the revenue and margins. Having said that, I think it's also important to keep in mind that while we are being aggressive in the market to bring in orders, there is obviously going to be some pricing pressure as well. However, having said that, being the market leader, we are able to still get a little bit of premium over the competitors, right, so all in all, I think the numbers are stable. We expect these numbers to remain stable as well for the next few quarters, but we do believe the second half of the year will be a bit stronger than the first half. But industrial, among the entire revenue mix, what percentage of technologies is particularly industrial mixing for H1 FY 2025? The mixing number for H1 2025, I don't think we have it on. I think the breakdown has been there is some breakdown. We will check that number and come back to you, but in technologies, if you want to kind of understand what's happening in technologies, you will find that the glass-lined business obviously has seen a bit of a slowdown while the other product lines are making up for the shortfall, right, so mixing, heavy engineering, Edlon, these are the three areas which have seen significant growth in order intake, and they're doing quite well. 10% is the number that we have currently in terms of mixing, and mixing is an area where we want to grow, right, so there's a big push for us to kind of get into new industry segments. Mixing opens up petrochemical, oil and gas, food and beverage, lots of other new industries which are not currently in a down cycle. So the focus is to really try to maximize order intake and opportunities from these sectors. Okay, so basically around 10% of the total revenues has come from mixing. Let me give the number. Yeah, approximately, yes. Yes. Okay. Okay. Sure. My second question was related to your non-glass-lining technologies. Non-glass-lining technologies, as you said, your subsidiaries, Edlon, Mavag, have been doing very well. So do you see at least in this year also these subsidiaries doing well? And can you specify or can you throw a number that at what can we expect, what kind of growth rates can we expect amongst these businesses, and which of the ones do you think will stand out? Either it will be Edlon or Mavag, or it will be Normag or heavy engineering? Yeah. So I think the few areas that will stand out where we will see double-digit growth. I think mixing is definitely one of these areas where we believe there are opportunities. The HE business will grow also at double-digit rate. It's profitable. We have a good backlog there. We won some large orders, and we have a lot of opportunities open that we expect to finalize in the coming months. So that gives us a lot of visibility. I think the Edlon business has done increasingly well. They obviously, as you know, cater to the semiconductor industry, so they are booked out for the year. We've actually kind of realized a little bit of capping for them to increase capacity because the market is booming, and the semiconductor space in the U.S. is doing quite well. So Edlon is doing quite well. In terms of the glass-lined business, I think the Italian glass-lined business is doing exceedingly well. They are ahead of their budget. U.S. and China remain a little bit soft. China is definitely seeing some kind of slowdown in terms of new investment. And in India, we have seen the glass-lined business actually pick up in the pharmaceutical sector in the last couple of months. We've seen some large projects in pharma, and there's definitely more talk now in the pharma space for new investment coming in. So that should drive some more glass-lined order intake as well. Okay. Okay. Sure. So just my last follow-up question that due to the revenue pickup that we'll see in the H2 supporting by these businesses, so sequentially also in H2, we'll see better margins. So if you can guide us, what are the margins that you are targeting for this year? And my last question was also on that, that after post this year, in the next two years, as you just highlighted in the initial commentary that we are a few quarters away before we see pickup in the investments. So at least on FY 2026 and FY 2027, can we expect a better environment than the current year, or still times are so uncertain that we cannot guide for that? I think the chemical cycle will turn. It's always happened. It's always been cyclical. This is not something that's new. A couple of years, we've already been in a down cycle. We probably expect a few more quarters, but I think definitely there will be a turning point. I think a couple of things will happen. One is that while we are in this down cycle, and we've already done a lot of work to make sure that, one, we have diversification so we don't only focus on chemical and pharma. So over the last few years, we have really started entering new industry segments, and a lot of these new industry segments are giving us or making up for the shortfall that has been caused by the slowdown in the chemical sector. So that's been a really good learning for management and for us. And as we look to the future, we do believe that diversification is going to be a pillar of our strategy to say that, "Listen, tomorrow we don't want to have all our eggs in one basket." Even though chemical and pharma is a big industry segment for us, we need to find new areas where we can grow faster and where we can grow margins as well. From an outlook here, again, I mentioned today that it is muted. This year, we expect to be flattish. We are in the peak of a down cycle, so it is stuck out there. I think all we can do as management is continue to be aggressive in the market and at the same time look internally to reduce costs. I think we have done, and we are in the middle of a major EBITDA improvement kind of project that we're working on in India. We've looked at now starting our Poland operations as well. The first order of equipment has been made in Poland already. So we expect that some of these initiatives eventually will help us reduce costs. And then in the medium term, like you said, in 2026 or 2027, we definitely will have a lot of legs to grow both revenue and margin. Okay. So can you guide us, sir, for at least what is the margin by? I request you to come back for a follow-up. Okay. Sure. I'll follow up. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address the questions from all the participants, please limit your questions to two per participant. I repeat, please limit your questions to two per participant. Thank you. The next question is from the line of Ganesh Ram from Unifi Capital. Please go ahead. Thank you for taking my question. So just to start with the international segment that we were discussing, could you give us a sense of what's happening in the major geographies that you're present in, right? Because we're just looking at half-yearly revenues for 2024 versus 2025, and there's a bit of a decline in the revenues there, right? And also, if you look at the backlog on a quarterly basis, there's a bit of a decline happening over there. So if you could just tell us, in the major geographies and the product lines that you're working in, what's happening? Because we have the India piece together now, and with the international piece, trying to get a sense of where we could go from here. And do you think this is the bottom of this cycle that you're experiencing? That's just the first question. Good question. I think a lot of it is maybe crystal ball thinking, but maybe I can ask Thomas to jump in, and the question was, Thomas, on the different geographies, maybe you can talk about the U.S., Europe, and maybe China as three major geographies and give them an idea in terms of what are you guys seeing and when do we expect those markets to kind of start firing a little bit? Yes, absolutely. Thank you. Start off with the Americas. In Americas, we do see consumption. We see projects coming in. We have quite a few quotations. The time of when a quotation becomes an order has been slowed down a little bit, which means that the market is somewhat hesitating. The capacities that were created over the last three years after the pandemic are kind of sufficient, and since the supply chains in the chemicals and pharmaceutical industry in America, in Europe, but also in Asia have been disturbed for quite a while, there was, let's say, an activity going on that the inventories have been backfilled, and a lot of companies have their inventories not yet worked off what they do now. Therefore, they're slowing down their productions and the need for new projects. In total, pharmaceutical and chemical industries are still consuming, and there is still growth of the consumption over the years, and the capacity that seems to be a little bit on the high side right now is going to be absorbed over the next couple of quarters, and then the cycle will be over and turn into a positive, and that would be true for all three major regions. Hello? I I heard a question. Yeah. Understood. Right. So what gives you confidence? Just continuing on that line of thought, right? Typically, we see various cyclicality, but what is sort of the signs that you look out for as a management to say, "Okay, fine, this might just be the bottom"? Are you seeing it in terms of inquiries, or how do you sort of decide that this is when the cycle is bottomed out and it's starting to inflect, and you prepare accordingly for that? Because you've kept your costs quite under control, but right as that optimism starts to return, I think you'll have to adapt to that as well, right? So just trying to get your perspective on that. Yeah. I think so. And again, a good question. I don't think we can time the cycle perfectly. I think there will be a bit of lag between when things change and when we will see results. Because first, I think the first people that the cycle should turn for is our clients, and then they should get back into the mindset of investment, right? So for chemical companies, for agrochemical companies, that mindset maybe is a few quarters away. I think right now, people who have invested will still try and spread their assets before new investments go in, and then they would need visibility in terms of their clients asking for more products, right? So once that kind of gets built into the system, then that excitement, that interest level will start increasing. We will start seeing it maybe a few months later when the project gets sanctioned, and then obviously the opportunities will be sent to us in terms of how much investment and CapEx will come in for you. In the meantime, obviously, I'm saying that even though agrochemical might be a bit slow, there's still opportunities in chemicals, in pharma, which has been positive. It is much better today than it was maybe six months, nine months ago, especially here in India. We've seen pharma obviously be a little bit more active, which is good. But generally, there will be a lag between when the cycle turns for the chemical, agrochemical players, and then obviously a few months later for us when the interest levels and the inquiries will start improving. Understood, sir. Understood. The second question I'll have to put this one and join back to Q is given the context that you're in right now, right, and looking at the guidance that it gives in Q1, that would imply we need to make about 3,600 crores in top line. Even at the lower end, 5% top line growth and a 13.5% margin is about 490 crores, which means just if we compare the first half and second half last year to this year, we need to grow by about 10% and on a sequential 30% top line, right? So do you still feel confident with that guidance, or do you think given how things are at the moment, we need to probably taper down our expectations a bit? So I think the guidance was flattish guidance, right? So we said at the top line level, maybe 3%-4%. I think we are in kind of, yeah, I think we are okay on that. Margins, obviously, there will be some margin made up in Q2, sorry, Q3 and Q4. But I think obviously margins are under a bit of pressure. We hope to be at a similar level like last year, but probably there will be some amount of margin that will still have to be made. Let's hope that the next couple of quarters we are able to kind of improve margin. Maybe Manish, you want to add something? So if you recall, Ganesh Ram, so if you break the previous financial year into H1 and H2, out of the INR 477 crores of EBITDA, we did, I think, INR 270 crores or INR 272 crores in H1, and we did INR 205 crores or something in H2. So it was a sharp drop from H1 versus H2, and we have been continuing and maintaining that almost the same number, similar number in the current half of the financial year. Now, the challenge is how well are we able to recoup the lost ground in H1 versus H2 last year into the second half of this year. So that is something that we are absolutely seriously trying to get to that. The question is how much can we recover? Understood, sir. Thank you. I'll come back to the question. 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 Rishabh from Aquarius PMS. Please go ahead. Yeah. Am I audible? Yes, please go ahead. Yeah. Thanks for the opportunity. Just wanted to know your sense on when you say that the chemical cycle will turn around? So what are the tangible quantitative parameters that you keep tracking? So when I say that, I want some quantitative parameters that you keep tracking when you say that the cycle will turn around. Okay, so this is the same I talk about how we look at the market, and I'm not sure if I can give you tangible, specific quantitative parameters, but a lot of this is subjective, right? I mean, to recognize that market, there's a lot of sentiment that I should help you in terms, so we look at, first of all, the announcements that we hear from our customers. We look at, of course, the state of the market every day, so we are talking to a lot of decision makers in these companies, so that's our first indicator of their plans, and usually we get a sense of what's happening in the next three to six months. The second, of course, there are a lot of databases that are available that talk about pricing of various commodities, and that's also an indicator. As prices start to shore up, people start looking at more; they're more willing to put in capital. And of course, the third aspect also is the margin profile of our customers. Because as they start shoring up, their confidence in putting in more capital goes up. So they think fairly obvious things, but that's the three areas that we look at to assess how these markets are going to evolve. Based on that assessment, I've talked about agrochemicals being slow. That certainly is the case, and we anticipate that will remain the case for a couple more quarters at least. We will continue to monitor and then take actions accordingly. In the meantime, just to reiterate, we are very heavily focused on ensuring that our cost position is appropriate for the market we're put in, and that I expect will start helping us from a margin perspective as well. Right. Right. No, that's quite clear. Just to follow up on what you said. So you said about three things. One is announcements of the customers. One is the databases where you keep tracking the pricing of commodities, and one is about the margins. So let's say from 10 customers, from where do you actually see that the margins are coming back or the announcements for the new CapEx that they are doing that is seeing some uptrend? So just to. Pharma is the only place we are seeing CapEx in a big way. There's a lot of investment happening in and around Hyderabad now, large projects, peptides, things like that. So pharma, and I think because of pricing pressure easing off in the U.S., pharma has been a little bit back on investment, right? So API, Bharat Group, pharma is probably looking a bit stronger than they did maybe a year ago. And I think for us also, like I said before, that chemical and pharma is obviously or was, let's say, maybe three, four years ago, maybe 90% of our total revenue was coming. But over the last three, four years, we've diversified and brought that down to maybe 60%, right? Where most of our growth and some of the shortfalls have been made up is coming from new industries that we started catering to, right? So it's important for us to continue on this journey, both for a product as well as an industry diversification, because at the end of the day, there will be cycles. Cycles will happen. So we just need to make sure as management that eventually, when one or two industries are slowing down, something else makes up for the shortfall. So that's an important part of our strategy going forward. And this would also lead into M&A and stuff and looking at new industries, which can give us three, four years of continuous growth, double-digit growth with good margins, right? So that's something that we are thinking about. All right. Thank you. Thank you and all the best. Thank you. Thank you. The next question is from the line of Rohit Ohri from Progressive Shares PMS. Please go ahead. Hi team. Couple of questions from my side. The first one being, do we have some sort of an index or do we track brand affinity as well as cross-selling, and if we do so, then can you share the numbers which were probably last same time? So I think brand affinity. I'm not sure, but good question. I don't know how we even calculate that. But in terms of cross-selling, yes, we have cross-selling numbers that we have kind of built into our models and our plans where every salesperson will have some targets for cross-selling, and they will get incentivized on cross-selling. So that's already kind of something that we work on quite well. But it's important that cross-selling really happens within a specific industry. We don't go cross-selling across industries. But within the chemical, pharma, why can't we sell the same customers buying a glass line, a filter dryer, a mechanical seal, acid recovery plant? So there are definitely opportunities there. Are we 100% kind of great and fantastic at cross-selling? Probably not. There's a lot of work to be done, but it's something that's part of our strategy. We do spend a lot of time trying to grow the cross-selling aspect of our business. I have one quick point. I think as far as the first part of your question around brand affinity goes, we do not currently measure it quantitatively. We have considered using a measure like NPS as a possible way to look at it. We haven't gone down that path. But what we do have is regular feedback from customers on what's going on, and that generally gives us an indication of loyalty, and we feel comfortable that we are in a good position on that front. Especially the other part of the glass-lined brands. Okay. Tarak, you did mention about pharma being picking up, and then there are some schemes which are coming up in India for some 50 new plants coming up over the next two, three years with PLI. My question was, can you share the behavioral changes of some of your clients, if at all, if it's in some sort of discussions that are happening, or are there some new engagements or commitments? Since on the international level also, we are almost near the year ending, so they must be trying to create their own budgets for the next year. So any sort of discussions or behavioral changes that you've recently noticed from these guys? I think a couple of things maybe. I think one is that the need for more sophisticated equipment is definitely now something that people ask for. It's now because you're now getting into much higher value production, better production, better quality is required. So I think that is something that people are more aware of now. Can I reduce my batch times? Can I reduce my costs? If I can dry something in 15 hours instead of 25 hours, immediately I have more capacity, right? So people are looking at a way to improve and become more efficient, and that obviously is something that helps us. There's also more critical products, right? So the quality of the product becomes more and more important, especially when you're exporting, and that's why they need more sophisticated equipment. We also see a lot of work around these weight loss drugs, right? So Novo Nordisk and things like that. That is driving a lot of ancillary industries as well. And some of these drugs will go off patents in 2026, 2027, and we expect that also to probably fuel some growth. CDMO business is growing quite well in India. And then, like I said, peptides is becoming really huge across the globe, right? So we see a lot of investment in peptides. Some of it will happen in India. It's a tough process. It's being done mainly in the U.S. and Europe right now, but India could become kind of a hub for peptide manufacturing as well. So pharma generally is looking quite positive, and the need for highly sophisticated equipment is growing in pharma. That's where we play. We've had specific instances where we've won large orders with Interseal. We've had German specifications in terms of glass-lined access supplied in India because the end product or the end customer was German, and he was kind of defining what equipment was to be used. He was using Pfaudler equipment in Germany, and hence the Indian manufacturer had to use also GMM Pfaudler equipment, right? That's happening. I think in the non-glass-lined technology, there is where people are really starting to think creatively. In systems businesses, we've got some large orders in systems over the last few quarters, close to $30-$40 million or $25 million, which is more process-driven, right? How do we help improve the customer's processes and make their life simpler? I think that's where we will also play an important role. Is this a part of the Living Lab initiative from U.K. Decarbonization for the pharma? Are you playing a role over there as well? Sorry, which was that again? Living? Living Labs. No. So I'm not sure what that is. Okay. No. Okay. My last question before I back into Q. Any developments that you'd like to share in terms of the F&D filtration and drying businesses, maybe with the light and medium-duty top entry? And your recent association, which you did allude a bit about the peptides recently, but your recent association with Gravner, which opens the door to quite a lot of business-related communication, if you could share some details on that. Sorry, could you repeat the last question? Our recent association with who? Gravner. Yeah. Gravner. I think that was the wine story from the wine producing thing. Sorry. Yes. Yes. Yes. Yeah. Yeah. So, okay. So we will talk a little bit about that, but yeah, go ahead. Yeah. Yeah. Okay. Just to be clear. Okay. So as far as filtration and drying is concerned, I can talk about a couple of areas. Our strategy here has been to differentiate by focusing on more value-added products or more sophisticated products. I'm happy to say that it's working out quite well and along the lines that we had expected. So we have launched two, three new products in the last three years, three new products in the last two years. And those are getting good traction in the Indian market. In fact, Vertical Conical Dryer, which is the first one to be launched, is also being looked at by European customers, with two being sold there already. We will continue our innovation journey in filtration and drying. We think that is the right way for us to grow. There is, of course, the low end of the market there, which is served by others. There, I think, is the low margin, somewhat commoditized space, which we're happy to stay away from for the most part. The other aspect of filtration and drying I will talk about is our expansion in the U.S. market, which was really to onshore. We had pointed this out as a part of our strategic initiatives a couple of years back, and we transferred a senior executive there to drive that business. So I have to share that that business is now well set. We have about $4-$5 million sort of annual revenue that we already expect from that market and will continue to grow there. We've also built up our team in the U.S. to serve that market, both from sales as well as from an operations perspective. It's a good new stream of revenue and margin for us from the U.S. I think as far as Gravner is concerned, which is the Italian win recently, I will invite Thomas to share it with you. Thank you. The company Gravner is a vineyard that is quite old in the north of Italy, where wine philosophy is that they let their wine age 15-20 years before they even put it out to sell. And aging the wine in wooden barrels or other media is somewhat risky if you do it for 15-20 years then look at it. So they were looking for a storage tank that gives them the cleanliness and the no influences from outside, from any wood or anything, to let their wine age for 15-20 years before they fill it up into bottles and sell it. They have looked at a couple of technologies and found that the glass-lined steel tank is the perfect fit for them, and they have ordered a couple of tanks that will be delivered in a couple of weeks, the first batch and the second batch in the first quarter. We see this is a good opportunity to take our existing technologies and branch into new applications that we hadn't seen before in this case. Okay. Thank you, Thomas. I'll get back into Q. I have more questions. I'll come back. Thank you. The next question is from the line of Ravi Mehta from Deep Financial. Please go ahead. Yeah. Hi. Thanks for this call. Just a question on the pricing. So when you said that we are at the peak of the down cycle, just wanted to understand how pricing has been in earlier down cycles vis-à-vis where it is now. Is it more bad? Some anecdotal thumb rule. Yeah. I think glass-lined is bad. It has been an area of concern, definitely. We've seen prices now stabilize a little bit, and hopefully, we can kind of reverse the trend and start kind of increasing prices slowly. It's always tough to increase price once you've already given the discount because most customers will have history and data available to say, "Hey, last order was this and so high. You are asking for unless." So we will definitely try. What we do try to do is obviously try and differentiate and say, "Okay, if you are going to give something that's more, I guess, better or technology that somebody else doesn't have, then we can charge definitely a much higher price," right? But yeah, in general case, in glass-lined, the pricing has taken a hit. However, I think now we've come to a point where I think it has stabilized, and I do see it probably improving over the next few quarters a little bit. Maybe just to understand in rough numbers, say, suppose a normalized pricing is 100, and during down cycles, the prices hit 75, just an example. So is the current down cycle seeing a price like 70, 65, just? Yeah. So I would say the discount levels have increased by about 10-15%, a little bit more in some cases. It would probably have been a little bit more than that, but now we are at about 10-15%. Okay. Okay. And one more question was on the order intake. So we had seen a good sequential uptake for the last couple of quarters. And this quarter, the order intake was kind of lower on a sequential basis. So has there some slippage happened, like closing of an order intake phase or anything which you would like to highlight? No. So I think generally, we were pretty happy with the order intake. Obviously, there are things that get pushed out by a few weeks here and there, but there are large opportunities that we expect to finalize, big ones, and we expect them to kind of maybe come in Q3. But no, generally, I think it's in line with our expectations. Maybe one or two orders got pushed out, but generally, we were able to close the majority of the orders that we had targeted. Yeah. Any color on the mix of order intake vis-à-vis last couple of quarters? Because I thought the non-GLE was adding a lot to the order intake and order book. So just some color around that, non-GLE. Yeah. It is definitely. In India, I think GL order intake has actually improved this quarter significantly. So we have booked good glass-lined orders, which obviously means that for the next half of the year, we will have a pretty strong backlog. The non-glass-lined order intake, especially heavy engineering, mixing, Edlon, have done exceedingly well. They have more than a year of backlog, I would think, in most cases. So those are the areas definitely where some of the shortfall has been made up, right? So we expect that the HE business will grow double digits this year as well. They're completely full up, and we are now also trying to extend and see if there's any more kind of opportunities in that space that we can kind of work on. All right. Yeah. Thanks. Yeah. Good luck. Thank you. Thank you. The next follow-up question is from the line of Sagar Shah from Spark Capital. Please go ahead. Thank you for, again, giving me the opportunity. My first question was related to the India business. It's a follow-up from the earlier participant's question. So this year also, the growth that we are anticipating would be largely domestic-based, as you just highlighted. The heavy engineering business will grow in double digits. The glass-lined business is showing traction. So as far as the India business is concerned, so the contribution, can we see at least higher margins going forward in H2 as compared to the 11.5% we have clocked around in this H1? So as the domestic business shows traction, and the domestic business is a margin accretive business for GMM as far as you have guided before. So can we expect higher margins in H2 because of the domestic business coming up? Secondly, in the next two years, what I wanted to ask as far as the global business is concerned, you were about to hire an international mixing business head also. So going ahead, I wanted some sort of a more granular outlook on industrial mixing business. How do you perceive now when actually the global economy recovers when the likes of U.S., China actually if they recover in FY 2026 and 2027? So how do we see that business growing? Because as far as your numbers say, it's not growing right now. But I wanted the outlook going ahead. So these are my two final questions. Okay. So I'll take the domestic question, so we have indicated that this is going to be a flattish year, and that's how we anticipate we continue to anticipate this year will be. As far as the breakup is concerned, glass-lined, because it serves the agrochemical and pet chem and pharma industry, it has been slow. We are happy to see a reasonably good order intake last quarter in glass-lined. But of course, there's still some more time to go before this business returns to sort of the strong performance we saw a couple of years ago. That gap has been made up by a non-glass-lined business, and that is part of our strategy. The enquiry volume for the heavy engineering business is growing double digits as well as good growth in some of our other non-glass-lined businesses like filtration, drying, mixing, and as well as our systems. So overall, the negative effect of this is a flattish year. As far as margins are concerned, we've focused on our costs, and I think those will help us improve to some extent. But it will be a while before we return to the 17%-18% numbers that we were performing at a couple of years back. So we are well on our way, and as we mentioned, we're pushing on a big EBITDA improvement project in India, and I think that should pay off for us next year. And as far as the global mixing is concerned, perhaps Thomas would like to. I'll just maybe add something here on the mixing. So you're right. We have hired a head of mixing who's been now with us for nearly six months. Last week, we had the entire mixing group from across geographies, the Canadians, the Indians, and the French sitting in the room, 26 of them, defining their strategy and building their plan for the next three years in terms of both their go-to-market strategy, their projections, as well as the investments that are required. That's something that we will be discussing in the next few weeks, and we should be able to have a clear idea in terms of growth areas, geographies, industries that we will be catering to, and maybe during the next board meeting, we can probably at the next investor call and earnings presentation, we can include maybe some kind of color or a slide on the mixing. So bear with us for a few more months, and we'll come back to you on that. Okay. Sure. Thank you, sir. All the best. Thank you. Thank you. Ladies and gentlemen, you may press star and one to ask a question. The next follow-up question is from the line of Ganeshr am from Unifi Capital. Please go ahead. Thank you. I think it's contextual to bring this up, and let's ask a few on the near term and a few on the longer term from here, right? So just on the near term, when we talk about the competitor pressures that you're facing, can you tell us how does this sort of shape in the conversations you have with clients, right? Because these are products where safety and quality matter. So why is there a pricing pressure, right? And what is our wallet share typically in our customers? And have we seen any protection or erosion in that sense because of this competitor pressure? That's just the first part of it, please. Yeah. So I think at the end of the day, the glass-lined business, obviously, there is technology. There's always glass lining is something that can kind of break off or chip off very easily. So life of equipment becomes very, very important. Removing these large reactors from chemical plants is not so easy for repair or to send back to the vendors. So that's a hassle as well. So quality is definitely important. But you do must keep in mind that Indian clients or generally clients around the world will usually have procurement departments who have the ability to get maybe multiple quotations, right? So there will always be competition. The internal view might be that GMM Pfaudler is the preferred vendor, but there cannot be a very large price gap. I cannot be at 100, and somebody else is going to be at 75 or 50, right? The gap should be a little bit smaller, and so that's something that is part and parcel of the Indian market, generally the global glass-lined market as well, so there's always going to be competitive pressure, but there are customers who clearly have defined that when it comes to glass-lined, they will buy it from us because they've used it and they've seen the quality difference between us and the other vendors, right? In some other cases, for not-so-large customers, not-so-sophisticated customers, people might try other equipment one-off. There could be somebody comes in and buys something, but they would realize after a few years that, yes, the equipment did not work as well or did not have the same life as maybe a GMM Pfaudler, so then it takes a couple of years, but then those customers will come back to us, right? But pricing is important, and you know the mindset, people want to save money today, but they don't really look at the total cost, right? Because there's a cost of service, there's a cost of replacement, there's a cost of removal. So it's a little bit of short-sightedness. But at the end of the day, I think we clearly communicate to our customers that if you buy our equipment, you're definitely getting a longer life versus a competitor's equipment, right? How much do they want to pay for it? That's something that keeps changing and changing between customer, industry, and regions as well, right? But that's normal, I think, competitive landscape across most industries where there will always be a number two and a number three, and you can't be completely off, right? Unfortunately, we're not in a business like NVIDIA is, and we can charge because we're the only suppliers, but there are other suppliers, and unfortunately, there is competition, and we have to deal with it. We have to get better in terms of convincing the customer that our equipment is better and why they should pay a little bit more for it, right? I think that is more important for us. Understood. That's very helpful. So internally, do you have any estimate of how your market share has tracked or your wallet share has tracked over the last few years? Sorry, I didn't get that last question. Can you repeat, please? No. So I was asking. I just timed you for your answer. I was asking if you have an internal estimate as to how much your market share and wallet share has evolved over the last few years. So I think that the wallet share in our key accounts has definitely grown. We are also currently working on a rebooted key account management process where we will kind of have multiple touch points. But our key customers continue to buy. We continue to discuss. We talk about process, technology, all that kind of stuff, right? So wallet share in our key customers is growing. And like I spoke about earlier, cross-selling has become an important part because we have multiple products that go into the same customer, the same industry, which obviously means that when a customer is sitting with one of our salespeople, he should be spoken to about all our products and not only one, right? So the idea to grow wallet share is a key strategy that we've had. And I'm sure that over the last maybe five, six years, if you look at our wallet share in the key customer accounts, it would have grown significantly. Yeah. Understood. Understood. And just going on a tangent here, but what I'm asking is, from where we are right now, right, are there any pockets that concern you or where you think any incremental risk could build up? And then on the existing order book that we have, what's the timeline for execution, right, ballpark? Yeah. I would say that we are in a situation where obviously it's tough out there. I think we are confident that the strategy and the work that we're putting in now will have a positive impact at a point when the market also turns. In the meantime, I think it's important that as management, we realize that we had a lot of focus, one, on glass-lined. If you look at our numbers, maybe 10 years ago or eight years ago, you would see 90% of our revenue coming from glass-lined. That has reduced significantly now. And again, like I said, industry focus, right? We switched from chemical and pharma, and we are now in a much wider industry. And that's why today we can say that we will be flat, even though there's been a big slowdown in glass-lined and in chemical and pharma, right? Because these other industries are making up for the shortfall. I mean, at the bottom of the cycle, we probably are at the bottom of the cycle. How long is this bottom going to continue is probably a little bit longer, right? I don't see the green shoots yet. I do see some talk happening in terms of new investment coming in. Like I said, in the pharmaceutical industry, we do see positivity, but chemical and petrochemical in particular seem to be a little bit more time before we see a complete turnaround, right? If you also, I'm sure you follow a lot of the chemical and petrochemical companies. Many of them are now also not clear in terms of their order intake, visibility, and guidance as well, right? From that perspective, we are also kind of flying a little bit blind because we expect them to kind of know before it kind of translates into order for us. But we have to keep working on our internal cost structure, which we are doing, and at the same time, look at opportunities which are not in chemical and pharma, which we are trying to do, right? I think from that perspective, I think we are kind of, I'm confident that the work that has gone in will give results. Timing is obviously something that obviously, I can't tell you exactly if it's like six months, three months, nine months. That's something that obviously we will all have to take that journey. But it doesn't look like it's going to turn tomorrow. It's going to be at least a couple of quarters before we see some traction, especially in agrochem, but by then, hopefully, we've also diversified and we bring in orders from some other sources, which is making up for some of the shortfalls. Understood. Just to add a question on the order backlog, how long will it take for us to execute this backlog? So most of this stuff will go out this calendar year. There would be some spillover, but generally, because we have capacity available today, we will definitely, at least from an India perspective, most of the stuff will go. Internationally, there are some large projects in the systems business, which will obviously take a bit longer to execute because that's the nature of that business. But in India, about 90% of the backlog will be shipped out this quarter. And we still have room to book more. So the stuff that gets booked now up till maybe November, December, end, that can still get shipped out this year, right? So there is that. And plus services. So keep in mind that services will always be on top of this. FATs, parts, man-day services will be on top of this. And this comes in as last minute, right? So it's not something that gets built into the backlog. That is especially relevant for the international business because it's a significant portion of their list. Understood. And then the last question, just briefly, on the longer-term outlook. I think maybe you're better placed to tell us about the chemical sector, right? Because one of the things that we always also kind of ask investors and analysts is, what are you hearing from customers and your investing companies from the chemical sector, right? Is there some light at the end of the tunnel or not? And I think maybe you probably would have a very similar view like I did, right? So. Yeah. Yeah. I mean, I can try to connect with you offline, and we can have a chat about that. And the last question I have, right? And I just want to briefly the last answer. But the three-year plans, right, they're expecting to see, I think, next quarter, as far as you said. But how is it shaping up? And how do you see the company positioned 2026, 2027, past this cycle, right? I think you're diversifying as a business. You're getting into different kinds of products. You're in different geographies, right? So if this engine is running at full capacity, what is the potential that it could deliver? And how long do you think it's going to take for us to get there? And what's being done to get us there? Yeah. So many questions in one. I think give us some time. I think we have been planning. We are working on a strategic plan. It's dynamic right now because obviously, things are changing quickly. We are also having some ideas in terms of diversification and things like that. I think from a numbers perspective, we had built some numbers in up to 2027. We are reviewing those numbers. We have a strategy meeting that's planned early next year as well. So give us some time on this. I think right now, we are working. The most important stuff for us today is to be aggressive in the market to get orders in where we can. Cut costs. Like Aseem mentioned, we are doing transformation projects here in India. Like Thomas has mentioned, we are looking at Poland and some kind of rationalization also internationally. So that work is ongoing but on the numbers and the outlook, I think that will require some more time because it's a very dynamic situation, uncertain situation. We will need a little bit more time on that. Maybe early next year is probably when we will probably have some more clarity on this. Understood. And the new management hires that you've done, right? I saw a press release briefly before I joined the call. So how does that sort of fit into this strategy, or is this more of an ongoing replacement? No. So I think there is definitely a new mindset, new perception that has been brought into our management team. I think we made a couple of important hires here in India ahead of manufacturing and ahead of sales. The project that is being run right now has seen a lot of traction because of the new perspective that we brought in. We made some hires internationally as well. So that's ongoing. We have strengthening areas. We recently hired a process head as well. So we're trying to build process as a technology that we will sell along with our equipment. So that's becoming a part of our strategy. We are also opening up an engineering. We have already opened up an engineering center here in India where international colleagues have hired engineers as well to do work for them for the international business. So all these things are ongoing. We expect them to kind of really help us, at least during uncertain times, keep the cost under control. At the same time, if the market will return and the business starts improving, then we will see significant and quicker improvements in terms of both revenue and markets. Thank you so much. The last follow-up question is from the line of Rohit Ohri from Progressive Shares PMS. Please go ahead. Thank you. So my last two questions. Has there been any spillover or is there any big order or some sort of thing that has not been shipped? And probably you see that happening in the second half. No, not really. I think most of the stuff that we have will be shipped out. And sorry, go ahead. So nothing which is out of the blue and all that. So nothing concerning. It's absolutely routine business. So you are there to have capital projects. So you would expect 15, 20 days, one month here and there coming out from the customer requirements, as the case may be, because they may be needing the equipment earlier or later versus the original plan. So that's absolutely normal. So things are on track for that. Okay. So Manish, what gives us the confidence that we will probably try to reach the revenue turnover of last year? And another thing is that we see there's a provision for inventory in the consolidated cash flow of some INR 13.7 crores. If you can share what exactly is that? Sure. So the confidence that it gives us on the H2 number is basically a higher backlog versus when we started the year. So from that perspective, we expect that deliveries to happen. And as we see ourselves, the factories are more filled up from a capacity perspective. The shop floor is more filled up. So therefore, as we see November, December, January, February, we should see that much more shipment going out. That would mean that much more realizations and cash collections and all that. So that's perfect. It's an execution of the backlog that comes into play. As regards the inventory provision, so it is basically a compliance of the SOP. We have a very strict policy with regard to if some product is not being used for a particular time slot, we have to make a provision. But it's a metal, so it does not really have a shelf life and all that. So as we use those metals and specifically for those cases coming up, most of that does routinely come back into the field. Are these some strategic metals or something of high quality that we're making provisions for? No, no, nothing like that. I think just that you buy a particular product and you were left over with some inventory and get utilized over. Rohit, I just want to add on one point. I think one of your colleagues had asked a question about the Living Lab earlier. I just want to add color to that. Internally, we call it as the CPI NCL project. Apologies for not addressing it. Yes, we are involved in that project. NCL of India, of course, National Chemical Laboratory, and CPI is the Centre for Process Innovation from the U.K. We have a collaboration with them along with leading innovative companies from the chemical space. The idea is to set up this lab in NCL with an emphasis on figuring out ways to decarbonize the industry. There are chemical companies, pharmaceutical companies, and amongst the equipment providers, we are the only one because they wanted industry leaders to participate in that. We are participating actively in that. As we develop new solutions, of course, we'll bring them further. GPL will be announcing them as appropriate. That's great, Aseem. Last question from my end. Manish, if it is possible to kind of share the pyramid of the customer sizing in terms of the deals in terms of rupees million, and Tarak did mention some developments in Poland. Are you looking at consolidating some of the businesses and bringing everything in Poland? Is that something that you're looking at? Poland becomes an opportunity. We already have India as a low-cost sourcing hub, but we also wanted to have something in Europe because some of the customers in Europe only accept European-made equipment. So Poland is a nice option for us. Like I mentioned to you, we made the first set of two equipment for Mavag 's Swiss facility, and the FAT was actually done a couple of days ago, and the results were quite encouraging. So Poland becomes an important kind of strategic idea for us. And because it's in Eastern Europe, the cost structure there is significantly lower than Western Europe, right? So I think that it's good. Plus, we have young engineers, young welders, both English-speaking and available. So getting people there is also not so difficult. And that area where we are focused, where we have our facility, is already an area where there's a lot of multinational companies like Boeing and aircraft manufacturing and stuff. So engineers are available quite easily. Welders and the quality levels there are also quite good, right? So we don't have that learning curve that we did have in the past with India. So Poland gives us an option, a very good option. And Poland is a strategy that we hope to kind of build on over the next few years. And I think on your previous question with regard to the previous part of the question with regard to the customer mix, that would keep changing as the CapEx plans definitely practically end up changing every year for us simply because of the CapEx cycle that the respective companies would have. Yeah. I think this year, I would like to add that the ticket sizes for heavy engineering are very different from last year. A glass-lined project would be 56 crores. A heavy engineering project would be 60 crores or 100 crores, right? So it depends on what it is. The product mix, also the size and the ticket size keeps changing. And like Manish said, if you look at the last three years, you would have a change in the top 10 customers because projects and investments don't continue every year. So one guy will build up and maybe stop for two years. So that keeps changing. Okay. Thank you for answering my questions. The point on Poland was quite encouraging. Hopefully, we get better margins going forward in the next two or three years. Thank you for answering. Thanks a lot. Thank you very much. Thank you. Ladies and gentlemen, we'll take this as a last question. I now hand the conference over to the management from GMM Pfaudler Limited for closing comments. Thank you, Neha. Thank you, everyone, for joining us today. It was a pleasure interacting with you, and we look forward to many such interactions during the course of the year. Take care and see you soon. Thank you. On behalf of GMM Pfaudler Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.