Ladies and gentlemen, good day and welcome to the Q4 and FY 2025 Earnings Conference Call of Elecon Engineering Company Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing the star, then zero on your touch-tone phone. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as of the date of this call. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. I now hand the conference over to Mr. Harshit Kapadia from Elara Securities. Thank you, and over to you, sir. Good evening, everyone. On behalf of Elara Securities, we welcome you all for the Q4 FY 2025 and FY 2025 conference call of Elecon Engineering Company Limited. I take this opportunity to welcome the management of Elecon Engineering, represented by Mr. Prayasvin Patel, Chairman and Managing Director; Mr. Kamlesh Shah, Group Chief Financial Officer; Mr. Narasimhan Raghunathan, Chief Financial Officer, along with their team. We will begin the call with a brief overview by management, followed by a Q&A session. I will now hand over the call to Mr. Prayasvin Patel for his opening remarks. Over to you, sir. Thank you, Harshit. Good evening and a very warm welcome to everyone on our Q4 and FY 2025 Earnings Conference Call. I'm delighted to be joined today by my colleagues, Mr. Aayush Shah, Non-Executive Director; Mr. M. M. Nanda, Head of the Gear Division; Mr. Kamlesh Shah, Group CFO; and Mr. Narasimhan Raghunathan, CFO. The press release and investor presentation have been uploaded to the stock exchanges as well as on our company website. I trust you have had the opportunity to go through the same. To begin with, I will provide a brief macro-level overview of the industry and the prevailing business environment, followed by a detailed review of our financial performance, which Mr. Narasimhan, our CFO, will walk you through. As one of the largest suppliers of Industrial Gear solutions in Asia, Elecon continues to be a leader in the organized Industrial Gear market in India. Internationally, our expansive distribution network spans approximately 95 countries, reinforcing the significant presence of our global reach. Aligned with our long-term strategy vision, we are focused on increasing the contribution of international markets to 50% of our consolidated revenues by FY 2030. This global expansion is underpinned by our strong R&D capabilities and ongoing investment in product innovation. I'm pleased to report that Elecon has successfully met with revenue guidance set at the beginning of the year, delivering record-breaking revenue and EBITDA in both Q4 and full financial year. This milestone reinforces our disciplined execution and deep alignment with our strategic roadmap. Our business is anchored by two primary divisions: Industrial Gear and Material Handling Equipment, each playing a distinct role in shaping our overall performance. The Gear Division, which contributes approximately 75% to Q4 FY 2025 consolidated revenue, has shown a stellar growth of 28.9% on a year-on-year basis, despite some sectorial headwinds. In the earlier part of the year, largely due to softness in domestic demand due to elections and global macroeconomic uncertainties, the division recorded its highest quarterly revenue of INR 597 crore, marking a significant reach. This resurgence has been driven by robust demand in both domestic and international markets, particularly from the steel, power, and cement sectors. While growth was moderate in the first nine months, the strong finish of the year reflects the division's resilience and our ability to capitalize on improving market conditions. We are also encouraged by sustained strength in inquiry levels and market sentiment improvement. We see a strong pipeline shaping up for FY 2026. Our MHE Division continues to exceed expectations, with FY 2025 revenue up 72.8% year-on-year and Q4 FY 2025 revenue surging 98.2%. This division is emerging as a prominent growing division for Elecon due to our focused strategy on developing this as a scalable business. This impressive performance is underpinned by a strong order book, primarily led by the demand from the steel and power sectors, followed by cement. MHE Division's strong growth trajectory reflects the successful execution of our strategic initiatives, growing market demand, and our ability to deliver tailored solutions across industries. We remain confident that the division will continue its upward momentum in FY 2026 and beyond, backed by a healthy order book and a robust outlook across core sectors. Together, the solid recovery in the Gear Division and the accelerating growth of MHE Division provide a strong foundation for Elecon's continued performance and long-term value creation. Elecon remains firmly focused on executing its long-term growth strategy. We are actively diversifying our business portfolio and expanding our presence across new sectors and geography. Our wide-range product portfolio, backed up by strong in-house R&D and engineering capabilities, continues to differentiate us in the industry. Looking ahead, we are seeing consistent demand from both domestic and international markets. Internationally, as part of the business strategy, we are actively pursuing opportunities to establish rapid build centers in Canada and Latin America, complementing our presence in the U.S. and Europe. Domestically, core sectors continue to drive sustained capital investments, and we are strategically positioned to capitalize on this trend. Our strong order book, proactive client engagement, and the focus on customized, high-quality engineering solutions provide a solid platform for growth. FY 2025 has validated the resilience of our business model, and as we move into FY 2026, we do so with renewed confidence, supported by a clear strategy and robust execution framework. Sustainability is deeply woven into Elecon's DNA. This year, we achieved a major milestone with the approval of our near-term targets based from the Science Based Targets initiative, SBTi, reaffirming our alignment with global climate goals. We are also proud to have been recognized by one of our global clients in innovative and sustainable building solutions for our ESG practices, a testament to our transparent governance and operational excellence. These goals reflect our deep-rooted commitment to sustainability and our proactive steps to transition to renewable energy sources and reduce our carbon footprint across the value chain. Our ESG strategy extends beyond compliance. It is integral to our values and our approach to responsible business. We remain focused on driving positive environmental and social impact, fostering employee well-being, supporting community development, and maintaining the highest standards of corporate governance. With this, I would like to hand over the call to Mr. Narasimhan, our CFO, for financial highlights for Q4 and FY 2025. Over to you, Mr. Narasimhan. Thank you, sir. Good evening, everyone. A very warm welcome to our Q4 and FY 2025 earnings call. I will now take you through the highlights of our financial performance for the quarter and the full year ended March 2025. We are pleased to report that we have successfully achieved our annual guidance for FY 2025, alongside delivering the highest-ever quarterly and annual revenue, EBITDA and PAT. We have exceeded our annual guidance by achieving 40 basis points higher EBITDA margins, reflecting strong operational efficiency and disciplined cost management. Financial performance Q4 FY 2025: For the fourth quarter ended March 2025, our consolidated revenue from operations stood at INR 798 crore, reflecting a robust growth of 41.3% on a year-on-year basis compared to INR 565 crore in Q4 FY 2024. This resurgence has been driven by robust demand in both domestic and international markets. Overseas business remains healthy, and domestic demand has picked up meaningfully, particularly from the steel, power, and followed by cement sectors. The domestic market contributed 83% to the consolidated revenue, while the remaining 17% came from overseas markets. Domestic revenue in Q4 FY 2025 stood at INR 662 crore, registering a growth of strong 48.8% on a year-on-year basis as compared to INR 445 crore in Q4 FY 2024. Overseas revenue in Q4 FY 2025 stood at INR 136 crore, registering a growth of 13.4% on a year-on-year basis as compared to INR 120 crore in Q4 FY 2024. The order book visibility and heightened inquiries keep us optimistic for higher growth in the future. Consolidated EBITDA for the quarter was INR 195 crore, up from INR 135 crore in Q4 FY 2024, representing a solid growth of 44.3%. Consequently, our EBITDA margin improved to 24.5% compared to 24.0% in Q4 FY 2024, a 50 basis points improvement. This EBITDA margin improvement was mainly driven by favorable product mix, improvements in after-sales services, and operational efficiencies. Profit after tax for the quarter stood at INR 146 crore, representing an 18.4% margin, up from INR 104 crore, or 18.4% in the same quarter last year. Financial performance FY 2025: For the year ended March 2025, our financial performance remained solid. The consolidated revenue from operations stood at INR 2,227 crore compared to INR 1,937 crore in the same period last year, reflecting a 14.9% year-on-year growth. Our EBITDA for the year was INR 543 crore compared to INR 474 crore in FY 2024. The EBITDA margin for the period stood at 24.4%, which is stable despite the challenges faced in certain sectors and markets in the first half of FY 2025. The PAT for the year was INR 415 crore compared to INR 356 crore in FY 2024, reflecting a 16.7% year-on-year growth. The PAT margin for the period stood at 18.6%. Segment-wise performance: The Gear Division contributed a significant portion of our overall revenue, accounting for 75% of the total revenue in Q4 FY 2025. For the quarter ended March 25, the Gear Division's revenue stood at INR 597 crore, up by 28.9% year-on-year compared to INR 464 crore in Q4 FY 2024. The EBIT for the Gear Division in Q4 FY 2025 was INR 146 crore, up from INR 126 crore in Q4 FY 2024, reflecting a significant turnaround as compared to previous quarters. The EBIT margins declined to 24.5% in Q4 FY 2025 as compared to 27.2% in the same period last year, mainly due to the change in the product mix. The order intake for the quarter was INR 497 crore, reflecting a healthy 20.6% year-on-year increase. As of 31st March 2025, our order book stood at INR 583 crore, positioning us for sustainable growth in the upcoming quarters. The Material Handling Equipment Division delivered outstanding performance, contributing 25% to total revenue in Q4 FY 2025. The MHE Division's revenue for the quarter was INR 200 crore, up by 98.2% year-on-year compared to INR 101 crore in Q4 FY 2024. This growth was driven by strong demand in both the product supply and aftermarket segments. The EBIT for MHE stood at INR 59 crore compared to INR 22 crore in Q4 FY 2024, reflecting a significant growth due to higher demand of our offerings in the market. The EBIT margin surged to 29.6% in Q4 FY 2025, up from 21.4% in Q4 FY 2024, an increase of 820 basis points. This was primarily due to a favorable product mix and higher contribution from the aftermarket business. The order inflow for the quarter stood at INR 148 crore, up by 22.8% year-on-year compared to INR 144 crore in Q4 FY 2024. As of 31st March 2025, the open order book for MHE stood at INR 365 crore, reflecting strong demand and growth prospects. On the balance sheet front, we are pleased to report a strong cash position. Our consolidated net free cash surplus stood at approximately INR 550 crore as of 31st March 2025, providing us with significant financial flexibility to pursue growth opportunities and maintain operational resilience. The Board has recommended a final dividend of 150%, that is INR 1.50 per equity share, having face value of INR 1 each, subject to shareholders' approval. As we look ahead to FY 2026, we are providing a guidance of INR 2,650 crore in consolidated revenue, with an EBITDA margin of 24%. This reflects our confidence in the continued strength of our business model, the resilience of our core markets, and the strategic initiatives we have put in place to drive growth. However, we are closely monitoring the global economic and geopolitical situation, which remains fluid. We remain committed to delivering value for our shareholders, and we are confident that our strategic investments, coupled with our focus on sustainable growth, will position us to achieve these targets and continue to strengthen our financial position. On that note, I would like to open the floor for questions you may have. Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on 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 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 Bharat Shah from ASK Investment Managers. Please go ahead. Yeah. Hearty congratulations to the Elecon team. Finally, the fourth quarter kind of made the work worth the wait. Just one question. Given the fact that our overall asset turnover is shy of one time, actually has fallen compared to last year, which was one time, and is now at 0.9. That means our return on capital employed remains somewhat less ambitious a number than what otherwise one would look forward to in a quality engineering solution-driven firm. I would like to hear your comments on that. How do we raise the bar on capital efficiency? We started in putting in the CapEx, which has completed in March 2025. The capitalization has happened in the fourth quarter. That is the reason it is reflected in the way what we are looking to. Going forward, that will cover up what we are just seeing in the earlier period also. What kind of asset turnover, total asset turnover, can we expect? We can expect more than one asset turnover is expected going forward also. More than one time? Yeah. That means return on capital employed will be in the band of 21%-24% if it is just one time or thereabouts, which I thought, given the strength of our business, won't you think that that number could be even higher? Yeah. What we reflect, our number will always be conservative. As you have seen, we are always cross what we are given the guidance also in terms of our EBITDA margin and otherwise also. Our endeavor is always to improve than what we are estimating also. Essentially, in the trajectory of the business, what is the optimal asset turn we can expect overall? What we just the new machines have been started installing. Based on the efficiency, it may take its own time to settle down on the machines. Based upon that, what we can see, the good asset turnover as well as the improvement on our return on capital employed may be from next to next year. That is from FY 2027, that will get reflected. Nice. All our machines are fully automatic and robotic machines. You want to, and with the new technologies we are investing in, it may have some teething issues. It may require some more training and development for the operators who are operating the machines. At that stage, do you think 1.2x-1.3x total asset turnover is possible? Yeah. It is achievable, honestly. That will get reflected from FY 2027 onwards. All right. Thank you. Thank you. The next question is from the line of Akash from Dalal & Broacha Stock Broking. Please go ahead. Yeah. Thanks for the opportunity and very strong set of performance, sir. My first question would be to understand what would be the impact of the U.S. tariffs on our U.S. business and also our other export business? Do we expect our U.S. business to go down, and will we recover in some other market, or how is it? We are looking at the tariffs as an opportunity to grow. Hello? We are looking at hello? Can you hear me? Hello? Hello? Please go ahead and disconnect. Hello? Hello. Can you hear us? Hello? I don't think we're calling you while we've got time. Hi. Akash, can you hear us? Hello? Hello? Hello? Hello. Yes, sir? Yes. We can hear you. Yes, sir. We can go on with the question. Sure. Regarding the tariffs, we are looking at this as an opportunity right now. Though our order inflow is healthy from the United States, they are also a hub for Canada and South America, which from now onwards, we are planning that we will establish entities separately in Canada, in Mexico, and if required, even in South America so that they will be able to do the business directly without going through the United States. This, I would look upon it as an opportunity to further grow and expand our reach within the Americas. I would look upon it as a great opportunity to do this. Yes, sir. The current participant has been disconnected. We will move on to the next question. It's from the line of Pritesh Chheda from Lucky Investments. Please go ahead. Yes, sir. My question is on the Gear Division. There is a deceleration in growth for the full year between this year and the last year. This year, we grew at about 5% in the gears business. I just want to understand from a sector perspective, which of the sectors in FY 2025 would have done well, and which of the sectors would have been weaker for the growth to come down versus FY 2024? I have a corresponding question linked to this, if you could answer this first. See, what had actually happened last year is the first quarter was slow because of the elections. That is the reason the customers were not willing to take the deliveries of the gears and the products that we had manufactured. There was a bit of slowdown, and then there was an acceleration that happened later on because we were keen to reach our targets or get as close to our targets as possible. Which was the reason why we accelerated. The same thing happened in the order inflow also. The first quarter, in the beginning, the order inflow was slow. Okay? The pending orders were less. Then the acceleration happened in the second and third quarter, enabling us to further strengthen our requirements for execution of the orders. I can proudly say that today, as we talk about, our outstanding or pending orders in the gear are 365 crore, and in material handling, it stands at 583 crore. 583 in gears. 583 in gears. Sorry. I'm sorry. 583 in gears and 365 in MHE, totaling up to 948. Sectorally, let's say power, cement, steel, marine, off-the-shelf, which part would have seen the lower growth momentum or any negative surprises in a certain sector versus others? If you could just tell, comment there. We understood how it transpired during the year and reasons why it transpired that way. My question was the sectoral comments. See, as I told you, if I tell you steel, it is a funny situation because it had slowed down, and now it is again accelerating. You can blame it on steel for the time being, but it is showing a robust inflow of orders. Is it that the steel, so let's say your larger sectors are steel, cement, power, metal, marine, and off-the-shelf, your last six or seven ones. Is it that the steel grew less than the gear growth rate? If your gear growth rate was 5%, steel grew less than this or maybe declined. If you could give that way, the comment will be helpful. Yeah. The steel sector, compared to last year, there was a 6% dip in that, which was one of the major impactors on the revenue growth. Contributors. Yeah. Correct. Any other sector which had a lower performance or a lower growth rates? No. Rest of them are the same line in terms of the percentage of growth. Only the steel sector, which was one of the contributors, which has impacted that also. Now, when you are giving a growth guidance of 19% next year, which is higher than the growth of this year, what is the inherent assumption in this 19% growth number? In that, inherent is in my order book position as of 31st March, which is quite strong. All these are executable in the coming year, in the next year itself. Oh, and above, power is also going to contribute in a good way in the revenue driver for us. Okay. So basically, power is a sector which is a driver for growth next year. Yeah. One of the major drivers. Major drivers. Okay. Any sector which you think is weaker in the coming year based on whatever you're seeing today? Sugar seems to be weak as of now. Sugar. Okay. Sugar. Okay. However, let us hope that we are wrong, and it picks up momentum during the year, during later part of the year. Okay. Just confirming, power means what? Basically, power means power generation site? Thermal power. Thermal power site. Okay. Yes. Power plants. Okay. The steel, cement, so the six sectors which we mentioned: steel, cement, metal, power, off-the-shelf. If you could give a broader mix here, what was it in 2025? In the FY 2025, steel was in my total revenue of year to year. In all these years. Yeah. I'm talking about year only. My steel sector contributed 11% of my total revenue. Sugar contributed 4%. Cement contributed 9%. Power contributed 12%. Okay. The balance is off-the-shelf. I'm sorry to interrupt. Yeah. There are others also, like MHE. Then marine is there. Then engineering sectors are there. Plastic and rubber and tire are there. Then mining sector is also there. Okay. Thank you very much, sir. All the best. Thank you. Thank you. Thank you. The next question is from the line of Akash from Dalal & Broacha Stock Broking. Please go ahead. Yeah. Sir, I would like to understand if you could give a detailed breakup of the next year guidance. Of the 2,650, how much are we planning to do in gears and how much in MHE? I mean, any ballpark percentage rate you can give? We are expecting INR 2,000 crore from Gear Division and INR 650 crore from MHE Division. Both put together will have the revenue of INR 2,650 crore. Understood. Within gears, if you could give a split for domestic and export, I mean, how much we are targeting? Presently, we are not comparative. We are expecting overseas revenue would touch nearly 27%-30%. Overseas will include both, right? The things that are exports from India and plus what I do in the subsidiary? Yeah. Correct. Correct. Absolutely. You said 27%, right? 27%? Yeah. Between 27%-30%. Understood, sir. One more question I wanted to ask was on the MHE segment. Basically, on a quarter-on-quarter basis, we see the MHE orders dropping. Still, I think you mentioned the INR 650 crore kind of guidance for FY 2026 in MHE. For how many further years do you expect such tailwinds in MHE to sustain? Normally, the material handling business is on the rise because a lot of new power plants are likely to be tendered or ordered for. Therefore, there is going to be a larger demand for Material Handling Equipment. The orders are normally finalized in packets. You may find that in a particular quarter, there might be a surge, or there might be a flat line during the other quarter. That keeps on varying from quarter to quarter. I am sure that overall, MHE would be doing fairly well. As of now, the way the winds are, the tailwinds are helping us looking at things that they will be very, very positive. Understood. Sir, last question before I come back in the queue. How much is replacement business as a percentage of the total gears business we did this year? I'll give you the percentage. Just a minute. Exactly. Yeah. For the gears, 34% is after-sales service. Thank you so much, sir. I'll come back in the queue. Thank you. I would request all the investors to please limit their questions to two per participant as there are several people waiting for their turn. The next question is from the line of Raj Shah from Enam Asset Management. Please go ahead. Am I audible? Yes, sir, you are. Okay. Thank you so much. My question is based on if you can provide any update on the progress with the OEM partnership, what kind of number have we achieved in this FY 2025? Hello? Yes. Just a second. Just a second. Okay. Yeah. The major one, we got one OEM order this year. In the quarter? Yeah. In the last call, you mentioned, sir, that we will be able to clock around INR 50 crore revenue from this OEM partnerships in Europe. If you can throw some idea, what would be the approximate number that we achieved? We crossed INR 58 crore for this year against our target of nearly INR 50 crore. Okay. Okay. How do you see the? Yeah. At the beginning of the year, we had given a projection of INR 35 crore. Later part in the Q2 earnings call, we said we are expected to touch nearly EUR 5 million+. We touched INR 60 crore, I think, which would be nearly EUR 6 million or EUR 6.36 million. Okay, sir. How do we see this number going ahead in FY 2026? Yeah. We see a good improvement in this OEM business. Our target is also to tap more and more OEM business so that, one, we will have sustainable growth in revenue as well as going forward, considering the warranty period of the six to 12 months, that will further generate after-sales service business for us. If I'm not wrong, this is entirely Europe business, right, or from U.S. as well? Mainly, it is from Europe only. Middle East? Only one is from Middle East. Got it. One last question, sir. There is some intermittent. Sir, I would request you to please come back in the queue for further questions. The next question is from the line of Mayank Bhandari from Asian Markets Securities. Please go ahead. Yeah. May I request you to please be a little bit loud, please? Can you hear me? Still, your voice is low but better than the other ones. Can you just be louder, please? Yeah. My first question is on the margin side. As you have been guiding that next year, your margin would be 24%. On this, what kind of segmental margin guidance will you give for transmission and material handling? Or maybe you can just highlight sustainable margin in the material handling segment. Yeah. Material handling will have a sustainable margin of 23%. Gear division will have the sustainable margin of 25.5%. 25.5%. Overall, it will be 24% sustainable margin at a consolidated revenue level. Okay. Secondly, on this total revenue of almost INR 1,762 crore in the transmission, what would be the composition in terms of standard and industrial? Yeah. We had the 60% is from the engineer product and catalog product 40% for this Q4. If I say on the total level of the full year, 52% is from the engineer product and 42% is from catalog product. What is the guidance? I would request you to please come back in the queue for further questions. The next question is from the line of Hetvee from Catamaran. Please go ahead. Hi, sir. Thank you for the brief. I might have missed this in the start, but can you brief a little bit more about the OEM business and strategy? What sector clients are these? Last year, you had mentioned that eventually, we want the international business to be 50%. Right now, the guidance is around 27%-30%, which is what we had even this year. I just want to understand how we're thinking to achieve the 50% mark. See, our reach in various parts of the world is continuously increasing. Our marketing aggressiveness is showing results. The orders may have come in ones and twos, but it is just the beginning in various territories, new territories that we are looking for. Therefore, we believe that over a period of time, it will help us reach the 50% that we are looking for. Yes, the increase this year has not been substantial, but you have to also understand that there was a tremendous turmoil in the geopolitical situation all over the world, including in Europe as well as in the Middle East, which is also having a severe impact in various countries. Together with that, now we have America, which is again getting destabilized due to tariff wars which are going on. All these are situations which are beyond the control of the business economy. Therefore, you would see variations in what we have said. Overall, our strategy has been perfect, or I would say strong in what we believe, and it will give results over a long period of time. Thank you, sir. If I may just ask about the strategy. Which geographies would be of main focus? Among that, what sector clients are we seeing interest from? See, our trust has been in the Middle East, then also in the Americas, especially Canada and South America. We are also seeing a good traction coming in now from the Far East. From the Far East? Yes. Yeah. Far East. The revenue that we've clocked right now is from Europe, right? Europe is always a primary, which is there, comes in the OEM business and the sustainable business over there also. Okay. On that. I'm going to interrupt. Hetvee Ma'am, please join back the queue for further questions. Also, I would request all the investors to please limit their questions to one per participant as there are several people waiting for their turn. The next question is from the line of Anish Jobalia from Girik Capital. Please go ahead. Yeah. Hi, sir. Good evening. Congratulations for a very good performance in Q4 and a strong finish to the full year. I just wanted to have one question. One is your depreciation amount is now INR 19 crore and finance cost is INR 5 crore. I believe there is some impact of the leased assets on this number. If you could just help to understand in FY 2026, what will this number be between the depreciation and the finance cost? We do not have any debt. If you could help, maybe there are other borrowing costs, etc. If you could just help to understand these two line items for FY 2026. That means that this year, my full year depreciation is INR 50 crore. We are the same, we considering my operating lease, what we are generally talking to everyone. This year, in FY 2026, we are expecting this to be nearly INR 70 crore-INR 75 crore for the full year. This will be the total depreciation of INR 70 crore-INR 75 crore? I mean, sorry, I didn't get that. Yeah. Yeah. INR 70 crore-INR 75 crore for the full year, FY 2026. Okay. Finance cost? Anything coming in the finance cost from these line items, ROU assets? Yeah. Finance cost will be nearly INR 15 crore for the full year. INR 15 crore-INR 16 crore. Okay. Between the two of them, it will be around INR 90 crore, right? Correct. Both. Correct. Correct. Okay, sir. Thank you. I wish you a very good FY 2026. Thank you. Thank you. The next question is from the line of Deepak Purswani from Svan Investment. Please go ahead. Hello. Yeah. Congratulations for the very good set of numbers, sir. Sir, my question is regarding the international market. I mean, if I were to look into the last year number, we've grown at a 13%, and next year, we are looking at a 27% kind of growth in this segment. If you can just give some sense, which are the key segments which we are looking into it? I mean, in some of the OEM, earlier, we used to say, I mean, we are exploring six, seven deals from the different OEM. At what stage are we in terms of the current discussion, and what is the revenue contribution we are expecting from these? Still, some of them are in the pipeline. I think we are quite hopeful it will be converted into the concrete order for us. This year, we have achieved that from this OEM, we achieved INR 60 crore, which are from the different industries starting steel, rubber, plastic, metal, and engineering sectors, which are there. Going forward, the same kind of mix will be there from the other OEMs we are going to entice in this financial year also. Our endeavor is also the same. We are to tap more and more OEM businesses from Europe and maybe from other parts of the Western world, which should help us to make a sustainable growth going forward. After that, maybe a couple of years after that, we may start generating more revenue as an after-sales service from that. Hello. Hello? Oh, yes, sir. Yeah. The current participant has been disconnected. We will move on to the next question. It's from the line of Rishi Kothari from Pi Square Investments. Please go ahead. Hello. Yeah. Thank you so much for the opportunity and congratulations on a good set of numbers. Can you again let me know what exactly impact will have for the tariff on us? I mean, is it beneficial? As you said, it will be a good opportunity for us to tap into the business. Can you just debrief us what exactly would be the benefit? How will we incur that benefit? Considering the tariff in the U.S.A., which is applicable across the board, across the territories and countries, so far as India is concerned, we consider that we are at a sweet spot, but still, we are not away from that impact on that also. Considering our business growing more in Canada, Mexico, and Latin America, we are exploring to have our own setup over there. That is in Canada, Mexico, and Latin America, which will help us to directly supply from India over there and let them grow by itself so that I will not get impacted on the tariff side. We are already at a very advanced stage to explore the same. Maybe in Q2, we will have that setup from one or more territories we are just exploring now. In a way, we are going more for geographical diversification. That is, apart from the U.S., we are exploring more from areas like Canada, Mexico, Latam, and all that. Sure. As far as the U.S.A. is concerned, while we would be subject to additional taxes, so would our competitors. It would kind of nullify the situation. The difference in tariff between various countries would not be more than 2%-3%, which is easily breachable. We are not expecting a severe difference in pricing because of this. Presently, what we are doing the business from the U.S. to this territory, that is Canada, Mexico, and Latin America, that now we'll do directly instead of routing through our manufacturing setup over there. Okay. Got it. In a way, in terms of U.S. tariff, we say the initial cost increase will be hardly 2%-3% on other products that we supply to them, right? Correct. No, the difference in tariff between us and our competitors from other nations would be 2%-3%. Okay. So 2%-3%, we are advantageous compared to other countries to the U.S.? Advantages or disadvantages. Okay. There is a difference. Sorry to interrupt. Mr. Rishi, I would request you to come back in the queue for further questions. The next question is from the line of Manish Goyal from Thinqwise Wealth Managers. Please go ahead. Thank you so much. Just to clarify on the depreciation number, you mentioned INR 70 crore-INR 75 crore versus INR 50 crore. Is it on the standalone basis, right? Yeah. Correct. Because my major CapEx is in India only. That is at the standalone level only. If you can just provide clarity, what is the absolute CapEx in FY 2025 and what will be in FY 2026? Secondly, what I see in your balance sheet is that leased liability has increased significantly from INR 44 crore to INR 147 crore in standalone. A similar jump is seen in the balance sheet. What is this leased liability pertaining to? Is it particular to asset addition or what? If you can clarify. If we take this combined effect of CapEx outflow and leased liability, what is the kind of capacity we are creating on the revenue generation front? I just want to get a sense on these numbers. Thank you so much. One more question. What was the export revenue from India, how has it grown, and how do you see it growing? Because you give the international number, but how much is exports from India? Thank you. This additional leased liability is nothing but an addition to the CapEx. What we are adding, what we have projected the last three years, the CapEx addition of INR 300 crore, which is going to generate the additional revenue of INR 500 crore for us. When you say leased liability, it is probably we have probably taken some assets on the lease. And then what is the actual CapEx which we are doing? Because that number in the cash flow statement is roughly INR 65 crore. What is the absolute CapEx you will be doing? When you are saying INR 300 crore, does it include leased liability also, or is it excluding that? No, it includes the leased liability also. The cash flow is because cash flow is prepared as per the Ind AS guidance. In that Ind AS guidance, the leased assets are not covered over there also. Okay. I will take this off. Yeah. Sorry. Yeah. We will move on to the next question. It's from the line of Nidhi Shah from ICICI Securities. Please go ahead. Thank you so much for the opportunity. I just wanted to ask on the employee expenses. We are seeing a huge uptick this quarter, especially in the standalone. Are these at sustainable level? Is there a run-off in this quarter? No, these are our sustainable revenue growth only. Whatever the numbers are, if they're sustainable for us. I meant employee expenses, actually. Pardon? Employee expenses. Are the employee expenses much higher this quarter? Yeah. Generally, employee we are sure to increase some employee, particularly more on the business development side as well as on the R&D side also, which is what is reflected. Whatever the new additions to the employees are, that is mainly on the productivity side only. That is in R&D and on the marketing side, which is now required considering our growth trajectory, what we are looking for over the period of time. It is increased because there are always the fixed pay as well as the variable pay out there. Variable pay is always considered through our certain parameters of our financial parameters to give to the employees. That is how it is reflected. Okay. Thank you so much. Thank you. The next question is from the line of Pratik Kothari from Unique PMS. Please go ahead. Yes, hi. Good evening and thank you. Sir, one comment on Eimco Elecon, the press release which I have put out. I mean, what is happening? You mentioned it won't be an associate anymore. I understand that the tripartite agreement is being broken, but are we also selling our stake there? No, considering the SEBI guidance, the associate when we terminated our agreements with the Sandvik Group or Tamrock UK, we are now nowhere where earlier we were the part of the stakeholders' agreement. That is the reason Eimco was considered as an associate company because of that agreement only. Now that agreement does not exist effective from 23rd of April. My stake will continue because to be an associate company, we must have the holding of more than 25% on that. As my holding remained less than 25%, this will not be considered as an associate company. That is the only change. Nothing else. It is just a classification of my investment. There is no other interest so far as my holding is concerned. We have no plan to add anything so far as the holding in the Eimco Elecon, as well as we do not have any plan to offload our existing holding of 66% in the market or otherwise. Okay. Great. Sir, in light of the opening remarks by Chairman or the guidance that we have, the order book that we have seen, when we look at CapEx, it is only INR 65 crore. I believe you are also adding capacity through this lease route. Qualitatively, be it on the employee side, be it on the capacity, machines, plant, etc., are we investing enough given the opportunity that we see? We also see that we may benefit out of this tariff issue which is going on. Are we preparing enough for it, and have we invested enough? Just if you can share your thought process to capture what you are coming. Pratik, we have invested nearly INR 160 crore in this year, nearly. Generally, leased assets, which are considered as a right of use assets in the fixed asset, which are not reflected in the cash flow. You can see the note which is given in the cash flow statement. As per the Ind AS accounting guidelines, that leased assets are not reflected as addition or the deletion to the assets. We have planned ourselves very well so far as the CapEx plan is concerned, considering the lead time of the machines for the delivery as well as the revenue projections from the marketing department. We do not foresee any challenge so far as the capacity is concerned or any capacity constraint to manufacture and provide a timely delivery of our goods to the customers. Right. Sir, lastly, on dividends, I mean, 10%-15% of profits we generated is being paid out as dividend. I mean, our CapEx plan also is not very high, I mean, INR 100 crore-INR 200 crore a year. We have now enough cash on books. If you can share in this dividend we ramped up, what else are we thinking? How do we plan to spend the cash that we are generating? Yeah. We have already calculated, and as per our dividend policy, we have declared the dividend. Because while presenting my proposed dividend to the Board, we are considering the different parameters to declare the dividend. I think this time, you might have seen we have increased our dividend by nearly INR 0.50 per share. That also is the good start. We already started from the last year to improve my dividend outflow. This year, the same is reflected by increasing my dividend this time. That is 200%, including the interim dividend of 50%. Correct. Going forward, cash that we have, I mean, except CapEx, except dividend, which is currently sitting on our balance sheet, what potentially can come out of that? Because we also have to keep some considering my global business. We have to keep some amount, which may be a material amount for my contingency also, like geopolitical changes and different kind of things what we are expecting. At the same time, we have to keep certain cash available for us for the CapEx also. Though we may explore the alternate options to do the CapEx, I have to keep that money reserve with me also. Let's put it this way that this is a war chest which has been created for any opportunities which come our way in the near future. Thank you, sir. Ladies and gentlemen, due to time constraint, that was the last question for today's quarterly call. I would now like to hand the conference over to the management for closing comments. Thank you. In closing, I would like to thank you all for joining this call and for your continued support to Elecon Engineering FY 2024. It has been a landmark year for the company. We are encouraged by the strong growth momentum across both Gear and MHE divisions. The Gear Division has demonstrated a solid recovery with robust demand across key geographies as well as other sectors. While the MHE Division continues to outperform, driven by a healthy and diversified order book, our consistent execution focus on high-growth segments and disciplined approach positions us well for sustained performance. As we move into FY 2026, we remain fully committed to scaling new heights, strengthening our leadership across markets, and delivering long-term value for our stakeholders. We do not merely provide solutions; we shape the future of industrial gear technology. Thank you once again for your participation and trust in Elecon Engineering. If you have any further questions or inquiries, please do not hesitate to reach out to our investor relations advisor, SGA, or our CFO, Mr. Narasimhan Raghunathan. Thank you all. Thank you. On behalf of Elecon Engineering Company Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.