Ladies and gentlemen, good day and welcome to the Tega Industries Limited Q4 FY25 Earnings Conference Call hosted by MUSG Enzy. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference has been recorded. I now hand the conference over to Mr. Bhavya Shah. Thank you, and over to you, sir. Thank you. Good evening and welcome to Q4 and FY25 earnings conference call of Tega Industries Limited. Today on the call, we have with us Mr. Mehul Mohanka, Managing Director and Group CEO, Mr. Sharad Kumar Khaitan, CFO, and Mr. Pratik Basu Roy, President, Product Group and Sales. Before we proceed with this call, I would like to give a small disclaimer that this call may contain certain forward-looking statements which are based on the latest opinion and expectations of the company as of the date. A detailed statement has been given on the company's investor presentation, which has been uploaded on the stock exchange. I hope everyone had a chance to go through these results. Now, I would like to hand over the call to Mr. Mehul Mohanka for his opening remarks. Over to you, sir. Thank you, Bhavya. Good evening and a warm welcome to all the participants on the call. I'm joined this evening by Mr. Yaver Imam, who's our Director on the Board, Mr. Pratik Basu Roy, President, Product Group and Sales, and Mr. Sharad Kumar Khaitan, who's our CFO. The total revenues of the group for the year ended 31st March 2025 stood at 1,681.8 crores, with an EBITDA of 387.4 crores. That is an annual EBITDA margin of 23%. The group revenues have been higher by INR 166.9 crores, or 11% in comparison to the same period last year. That is financial year ended 31st March 2024. I'm excited to inform you that during Q4 of FY24/25, we recorded the highest quarterly revenues of INR 542.8 crores, which is higher by 6% over the same quarter last year, where we had total revenues of INR 511.2 crores. This, in turn, resulted in EBITDA margins of 29% during Q4 of FY24/25. We have an order book of INR 1,029.2 crores as of 31st March 2025, out of which executable orders within one year is 591.2 crores. A significant portion of our products and solutions are customized for the gold and copper mines, and we believe there is a robust demand for both these metals. The world is witnessing heightened uncertainty driven by geopolitical tensions, whether it is Russia-Ukraine or the Israel-Hamas war, or the recent India-Pakistan issues, along with the wave of tariffs and protectionist measures led by the U.S., leading to a disruption in the global trade flow. Investor interest is likely to strengthen as gold's appeal as a safe-haven asset and portfolio diversifier heightens amid global economic uncertainties and financial market volatility. The demand for gold appears to be robust with an upward price trend as geopolitical tensions continue. There are strong central bank purchases that offer demand support, coupled with declining grades, which will in turn lead to an increased consumption of Tega's products. Copper's natural properties, from its durability to high conductivity, make it the material of choice for the green transition, contributing to solutions for modern climate challenges. Copper demand is expected to double by 2050, driven by clean energy requirements and critical decarbonization technologies such as wind turbines, photovoltaics, panels, heat pumps, electrical vehicles, and others. Copper is also poised for growth, driven by infrastructure expansion, evolving technologies, setting up data centers, and increased demand of electronics, coupled with supportive government policies. We had earlier mentioned that there has been a delay in our Chile project, mainly due to non-receipt of statutory approvals on time. I'm pleased to inform all of you that all such approvals have now been received, and we have all the clearances to commence construction, and the commercial production of our new facility is expected to be operative by middle of next calendar year. I would like to assure you that no sales are impacted by such delays, as we have put up alternate plans at Chile and have also evaluated the options of shipping from our other plants as well, if required. I would like to express our sincere gratitude to all our investors for their unwavering faith in our company. Thank you for your continued support, and now I would like to hand over to Sharad to take you through the financial performance of the company for the period under review. Thank you, Mehul. A very warm welcome to everyone, and thank you for joining the earnings call for the Q4 of FY25 and for the full financial year FY25. The group income for FY25 stood at INR 16,818 million, with an EBITDA of INR 3,874 million. That is an EBITDA margin of 23%. It may be noted that for financial year '24, group revenues were INR 15,149 million, with an EBITDA of INR 3,426 million. That is an EBITDA margin of 23%. We have achieved a double-digit revenue growth of approximately 11% during FY25 over FY24, in spite of the heightened uncertainty driven by geopolitical tensions and supply chain issues. The consumable business segment contributed 87% to the group revenues, and the equipment business share stood at 13% of the group revenue. The revenue from operations of the consumable business witnessed an increase of INR 1,396 million, or 11%, with FY25 revenues at INR 14,301 million, which was INR 12,905 million last year. The revenue from operations of the equipment business witnessed an increase of INR 97 million, with a 5% increase over revenues of FY24. The growth in the revenue of the equipment business is impacted mainly around commercial issues like non-receipt of advance from customers, delay at customer site, and delay in receipt of manufacturing clearance from customers. We are in discussion with our customers to ensure that the goods are lifted and all approvals are released on time. We have been able to maintain healthy blended gross margins of approximately 57% in line with last year, in spite of raw material volatility and global uncertainties as witnessed during the year. As mentioned earlier, we have achieved steady EBITDA margins of 23% for the year at the group level. We have achieved the highest quarterly revenues of INR 5,428 million in Q4 of FY25, with EBITDA margins of 29%. The revenue from operations of the consumable business for the quarter ended March 2025 stood at INR 4,605 million, which was INR 4,493 million during the same period last year. That is an increase of INR 112 million. The revenue from operations of the equipment business for the quarter ended March 2025 is INR 793 million, as against INR 586 million during the same period last year. That is an increase of INR 207 million, approximately 35%. If we compare the quarter ended March 2025, which was the immediately preceding quarter ending December 2024, then we observe that the revenue from operations of the consumable business is INR 4,605 million, which was INR 3,556 million during the immediately preceding quarter, resulting in an increase of INR 1,049 million, or 29%. The revenue from operations of the equipment business for the quarter ended March 2025 is INR 793 million, as against INR 547 million during the December 2024 quarter, resulting in an increase of 45% quarter on quarter. The order book for both the business segments, consumables business and the equipment business, remains strong. As informed earlier, we have an order book of INR 10,292 million as of 31st March 2025, out of which executable orders within one year is approximately INR 5,912 million. Thank you very much for your time, and now the forum is open for any questions you may have. 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 remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Riddhi Shah from SAS Capital. Please proceed. Thank you for the opportunity. I have a question. Africa is a high-growth region for Tega, with TMML's cost-effective equipment gaining traction. Can you quantify the revenue contribution from Africa in FY25 and outline the plan to expand DynaPrime and TMML's footprint? Ma'am, Africa contributes about 20% of the group revenue, but McNally is currently 100% focused on India, and we have not expanded yet globally. We have that vision to take Tega McNally global, but it will take a couple of years. Once we have the processes systems set out, which we have done to a large extent, and have those equipments of larger sizes, etc., ready, we want to hit the global market with the Tega McNally portfolio, but it will take us about one and a half to two years before we hit with the McNally product at a global stage. Okay, okay. Thank you. I have a second question also. DynaPrime has been a key driver, as we know. So what is the current run rate for DynaPrime? And how many? Ma'am, it's. Okay. Ma'am, it's very confidential information, and we don't give the specific details of DynaPrime. We like to refrain from giving any specific information by forgetting the product level details, especially DynaPrime and the mill business. Okay, but you won't be providing how many additional top-tier global miners are in the pipeline for adoption in FY26 to maintain a 50% growth momentum also? Ma'am, we have been, if you see our past trends over a period of five, seven years, we have been growing at an average CAGR of about 50%, and we are hopeful to maintain a good track record in the near future also. We will definitely maintain that. But giving customer-wise detail, etc., being a little sensitive, we would prefer not to share this information at this stage. We work with almost all the top mining groups and companies in the world, ma'am. Okay, okay. Thank you. Thank you. The next question is from the line of Deepak from Sundaram Mutual Fund. Please proceed. Yeah. Am I audible? Yeah, Deepak, please go on. Go ahead. Yeah. So my first question is regarding what is the demand outlook for consumables in FY26? I mean, are we seeing any kind of demand headwinds? Because if you look at your consumable growth rate for the whole year, it's around 11%, right? Earlier, it was guided at 15%. So what is your estimation? Was there any order difference in the consumables in Q4, which will come through in Q1 or Q2 of next year? What is the demand outlook? Are there any headwinds for the consumable business? So, hi Deepak, this is Pratik here. So our guidance remains firm. It's only a time difference that has come in between Q2. Some of the orders that in Q4, sorry, apologies for that, which is expected to come out in Q1 and Q2 going forward. So there's no loss, but more of a deferment that's come through. Our initial guidance remains the same. Okay. And second, on your cash flow statement, so I observed that this year we have spent around INR 170 crore in fixed assets. So could you just break up where have we spent this INR 170 crore in FY25, and what is our CapEx for, let's say, FY26 and 2027? Deepak, our CapEx includes growth CapEx, sustenance CapEx, and certain specially designed assets, which are deployed at all our manufacturing locations and at installation sites as well. As far as the CapEx guidance is concerned, we have our Chile project, which will have about $30-$35 million of CapEx expenditure. Then we have our Dahej de-bottlenecking project, which is ongoing, and apart from that, we have about $5-$6 million of maintenance CapEx every year. And so Dahej CapEx will be how much? About INR 30 CR is the Dahej CapEx. Okay. And so two questions I have on equipment side. So this quarter, we have shown a very good EBITDA margin at 16.6%, right? Means, you have exceeded your own kind of guidance on margin front in equipment. So is there any one-off, or is this 16% EBITDA margin in equipment sustainable for next year as well? No. You see, you should always see our numbers on a full-year basis. So we have improved from our EBITDA margins of last year when we were and have considerably improved the processes, systems, etc., at Tega McNally. And it's all about an operating leverage, and we intend to keep the group momentum. But yes, 16%-17% on a full-year basis for an equipment business looks a little challenging. But yes, we have a target to have decent EBITDA margins going forward. Okay. And sir, on that NMDC order book, so have we executed any of the order which we won in, let's say, June, July of 2024? If I'm not wrong, it was around INR 120 crore, right? How much did we execute in FY25, and how much do we plan to execute in FY26? A significant portion of this order is going to get executed in the current financial year, which is FY25-26. A very small proportion has been done in the last financial year, but a significant chunk, majority of that, is coming in FY26. Okay. So then, just to summarize, what is our growth guidance for equipment and consumables and EBITDA margin guidance for both for FY26? See, Deepak, we have navigated through the challenges in the past and have a clear pathway for growth and are well-positioned to keep a strong momentum. So if you see the track record, we have had decent double-digit growth. So there have been years when we have even grown at about 23%-27% odd, and we would like to focus on the trajectory and work towards enhancing the shareholder value. So anything which you can quantify? You see, if you see our past trends, then we have that average growth rate of about 15-odd%, and we intend to maintain that track record. Okay. Okay. Thank you very much. Thank you. Before I take the next question, I would like to remind participants that you may press star and one to ask a question. The next question is from the line of Kirtan Mehta from Baroda BNP Paribas Mutual Fund. Please proceed. Thank you, sir, for the opportunity. Coming back to the Q4, ma'am, what I understood was that this is more related to the timing difference, and this will come through in Q1, Q2. So can we consider FY26 growth as 15% plus sort of 4% difference, so more closer to 20%? See, there's always an overlap between two financial years. So until we have a good order book and the orders are intact, that is what we focus upon. So if we have the orders in hand and the order books are intact, that flows into the revenue. Whether it's into a particular financial year or gets spilled over to the next doesn't bother us because our manufacturing capacities are built around the order book, and the delivery to the customers again is the same. Right. In terms of the FY26 equipment proportion, where do we expect it to grow from 13% to what level? It should definitely be a higher proportion. We should be able to have at least 20%, 20, 25% coming from the equipment business in the overall scheme of things. Right. One question was about the receivables. When we look at the Tega standalone results, there has been an increase in the receivables, but the same is sort of not visible in the consolidated. Could you elaborate what it attributes to? You see, when you have standalone accounts, there are certain transactions which we have with our group entities whereby we transport the booth, and then you have the third-party billing coming from those entities. So higher receivable in a standalone is because of the outstanding from such parties. At a group level, all of those get eliminated because all intercompany transactions are eliminated when we have the consolidated financial statements. The standalone receivables which we have seen in the increase, will this get sort of nullified over the next one or two quarters? Yes, because all of these shipments, what we have done, they crystallize as revenue in the subsequent quarters, and the money is flowing accordingly. Sure, sir. On the DynaPrime, is there a possibility to give some color in terms of how we are developing into the market and how far we have come on the journey, in terms of taking the market share? Any color would be useful? As far as DynaPrime is concerned, we are being able to establish the products and solution with our customers. And wherever we have done the installations, we have got very good results. And the savings what we have committed to our customers, we have been able to deliver that. But we would like to refrain from giving any specific data on DynaPrime because of sensitivities involved here. Sure. Thank you. I'll get back in with you. Thank you. The next question is from the line of Mayank Bhandari from Asian Market Securities. Please proceed. Yeah. Thanks for the opportunity. Just on this standalone number of full-year 21% growth, is it possible to give what kind of contribution we had from the execution of the large order that we are executing in Europe? Mayank, we see our business portfolio at a total level, and we have been able to have decent EBITDA, good EBITDA margins of 23% for the full-year basis. Customer-wise details, we don't prefer to share specific to any specific customers. So I think it was INR 600 crore total, and. Yeah. Revenue is there. Revenue details are there with you. It's there in the public domain. The margins, etc., we cannot share customer-specific data. Okay. Is it high margin, low margin than the usual business? It's a part of the entire group, and it helps us maintain our EBITDA margins, what we have been able to deliver. Okay. Okay. And secondly, just understanding from a couple of competitors' perspective, in Metso and all have highlighted that March quarter has seen good pre-ordering from US, and across the board, we have seen that because of the tariff uncertainty, there was increased procurement in the US. So is that the same thing that you have kind of observed, or maybe if you could highlight the impact of the tariff changes on your business, impact on the consumables business? Yeah. So on the tariff, we don't see any impact on our business in the U.S. because all our competitors manufacture outside of the U.S. So if tariffs, whatever it may be in whichever shape and form, will be applicable to the industry at large and applicable to all our competitors and peers as well. So it's going to have a balancing-out effect in time to come in terms of whichever way the tariffs go. So there is no material impact on the tariff. In terms of the mining industry, are you seeing any increased activity from Chinese dumping perspective in other geographies other than U.S.? No. We haven't seen any of that. Okay. Lastly, could you give any other finance cost forecast for 2026 going forward? It's going to be in line with the current financials. If you see the finance cost at a group level has come down because we have repaid a certain portion of our debt, etc., and we have taken the benefit of lower interest rates as well, and that trend is going to continue. Okay, sir. Thank you. That's it from my side. Thank you. The next question is from the line of Salil Desai from Marcellus Investment Managers. Please proceed. Thank you. Sir, I have a question on this deferral of orders and whatever new booking there are. I know this has happened for a couple of times in the last one year or so. In such a situation, how do you kind of manage production planning? How do you manage working capital? What protection do you have if the client places an order and then delays and does not pay in advance? What would that impact be on business operations and on profitability? See, there's always a sufficient time cushion, even the customers keep when they place orders on us, and we have been trying, as far as risk mitigation is concerned, we have those inventory raw materials in place. We try to book the shipping lines in advance and try to ensure that customer deliveries are done on time, but because of these uncertainties which we have witnessed over the last one year, because of geopolitical tensions or shipping lines, containers not available, etc., just to give a perspective, even last week when this India-Pakistan thing had happened, there were a lot of concerns even about the port availability on the western part of the country. So these are part of the challenges of running a business, and we have our colleagues and team which takes care to ensure all of this risk mitigation is done so that the deliveries to the customers are done on time. My question is, if the customer does not pick up, like you said, some people have not paid you advances or not lifted the material, in that case, what is the response or what is the option that you have to get paid on time? Again, Salil, sir, there can be delays, etc., even on the part of the customers not picking up or lifting the materials. But all of this is a part of the business, and these are all assured things. There has been no default per se as such, and that is how it is. So a couple of months here and there doesn't make much of a difference to us. In that case, given how much uncertain the world is, then do you think giving, say, a guidance of 15% revenue growth might be a little probabilistic rather than more realistic? You see, Salil, on an average, if you see last five, six years, so that is the guidance what we give is an average growth over the past several years, actually, and certain years, we have even exceeded, way past the 15% mark, actually, so on an average, if you see, we have been able to maintain that, and that's how we intend to move forward also. Salil, I have to say here. You see, we have a significant chunk of our business from repeat businesses, right, which is kind of assured because they will have to run those mills. The entry and exit barriers are also very high for all of them. That part is more or less assured, and that gives us this confidence. What is at risk is the new business that comes in that might have a, but that's a very, very small part of it. I see. In fact, that's what I was surprised that given that it's such a repeat, I mean, the nature of the business is such that the visibility should be high, but still, in the last three, four quarters, we have been missing. It's been hit and miss on the growth target. That was what was a little. It is just about a little change in the customer's order cycle, so if you see, there have been years, like I told you earlier also, we have grown well past the 15% mark, so we should not see a year in oscillation because of these uncertainties. It's not only our industry or we as an organization have got impacted. It's across the globe. People have got impacted. Organizations have got impacted, and we're all learning to cope with the same and move forward, so if you see, on an average, the growth momentum is there, and we have a strong belief that we will be able to deliver because we don't see any slowdown at any of our customers' end. Timing issue is well manageable, and that's the challenge we as professional managers run the business with, actually. Great. That's good to hear. And lastly, another question related to this is the orders on hand which are executed in the next 12 months. It's come off a little from, in the last two quarters, 600 or close to 760 crores in December quarter and then about 590 crores now. Does that impact? I mean, how should one rate this in terms of translation to revenue in the next 12 months? I don't think there's much to read into it. It's just a question of the mix that comes in between the various customers we have globally. So it's just a mixed effect. I don't think there's much to read into it. I see. All All right. Great. Thank you so much. Thank you. The next question is from the line of Chirag Muchhala from Centrum Broking. Please proceed. Yeah. Thank you. And good evening to everybody. Sir, firstly, on the consumable segment, can you also speak about in FY25 how various regions have performed and which regions are driving growth? In association with that, while in Chile, we are in the process of setting our new plant, but for other manufacturing locations overseas like South Africa, Australia, etc., what is our capacity utilization there, and do we foresee any need to expand capacities there over the next one to two years? Chirag, the average capacity utilization which we have is about 60%-65%, and we plan for our capacities well ahead in advance. So capacity is not a constraint for us at any point of time. And as far as the growth is coming, we are seeing growth across geographies and locations. So we are pretty confident Chile and South Africa, everything will contribute to the growth momentum of the company. Okay. So South Africa or Asia-Pacific, etc., around those manufacturing locations of ours, is the brownfield expansion taking place, or it is not required in the medium term? Wherever required, we are doing the expansion plan. For example, we have taken the Dahej CapEx plan in India. Correct. Like I told earlier, it's about 30 CR what is committed to the Dahej expansion plan. Correct. Okay. Sir, second question is actually within consumables, our non-mill liner portfolio. So since this portfolio is highly profitable, just wanted a sense on over the last one or two years, how this portfolio has evolved, and I mean, how the growth here is, and within consumable, what is the percentage revenue share of this portfolio now, non-mill liner? No, I don't think we will, as we don't give a breakup as we have, as I told earlier also, within the consumables, our business is divided into consumables and equipment. So in terms of, but just to give you a sense, the non-mill business also has seen a robust growth. So I'll keep it at that. Sir, is it at least possible to qualitatively say within non-mill what products are doing well and whether the growth is higher than the company average or in line with company average? It's in line with company average. Okay. And sir, which products are? Some of the products that we have got wear components, which have got the liners for mill chutes. We have got the conveyor components. We have got Hydrocyclones and Screens and Trommels. So all of them are doing well in their respective segment. Okay. And sir, lastly, on the equipment segment, so there, as we have been investing in the people, processes, etc., so in the domestic market, for the domestic market, if you can speak about, I mean, the improvement that we have seen in our capability, and as far as upcoming tenders, etc., are concerned, do we expect, like NMDC, to win much more tenders in equipment segment in the near term? Yeah. So basically, now that in the domestic sector, there are two areas which is the high growth area. One is the power sector, okay? And also on the steel, but the steel, in the last couple of months, the speed has gone down. But power, we still consider that the power and aggregate will continue to grow. So like we've done with the NMDC project, we are some of the tenders which are expected in the next few months, we are collaborating with a number of parties the way we have done for NMDC to quote for this. Now, some of these tenders, the timelines when it is going to be decided is a little hazy now, but we expect quite a few tenders to come in the next five, six months where we will be collaborating with a number of EPC contractors to quote as a consortium. Okay. Okay, sir. Yeah. That's it from my side. Thank you. Before I take the next question, I would like to remind participants that you may press star and one to ask a question. The next question is from the line of Manish Ostwal from Nirmal Bang Securities Private Limited. Please proceed. Yes, sir. Thank you for the opportunity, and I joined the call a little late, so maybe repeated a few questions. So first, on the operating cash flow generation during the year, it's weak compared to a little bit of growth. So definitely, we have seen some increase in inventory as well as receivables. So is there any, I mean, some spillover effect which is reflecting the working capital or which will correct in the coming quarter? Can you comment on that? You see, we are a cash surplus company, and it's just a matter of time with the debtor's realization coming in the subsequent quarters and the inventory getting, the goods getting built. All of this will realize in the cash flows and strengthen the cash flows further. But we have got sufficient cash flows, and we are having no issues with respect to the same. Secondly, sir, did you quantify the amount of orders which spill over to the incoming quarters in the call? No. It's very difficult to give a number like this because it depends upon the customer cycle, the timing of receipt of the order, etc. But yes, we are confident of the growth trajectory of the company, and that is what we have commented upon earlier. Just taking your comment in the past, you said a few years ago we have a lower growth in a few years. We have reported it. Higher growth, even 22%-23%. If I understand that trend, then the F25 growth trajectory, then F26 should be materially higher than the 15% which you have guidance, sir. What we need to see is the company's growth rate at an average, say, a five, six years CAGR basis. That is what we should look for. There are years when we have got very high phenomenal growth, then maybe we have got a 13%-14% growth next year. So as the numbers come in, we will keep you informed of that. What we can commit to you and see at this moment is that the business is moving in the right direction. The inflows are strong, and we expect the momentum to remain buoyant at this stage. Thank you, sir. Thank you. Thank you. The next question is from the line of Mukul from Insightful Investment Managers. Please proceed. Yeah. Good evening, sir. Could you provide the full year revenue and EBITDA number for McNally? McNally, if you see, we had the revenue from the equipment business. That is McNally. Just one minute. Entirely McNally. 213 crores is the number we have for the full year for McNally. The expected growth here would be 15% CAGR for about three to four years, right, sir? Sir, I couldn't hear the last sentence properly. Can you please repeat? So I said, I mean, growth here would be about 15% CAGR for the next three years. For McNally? Yeah, but at the group level, we are seeing a decent growth rate, sir, so it will come both from the consumable and equipment business together. The share of McNally will definitely grow in the near future as we go forward, and that is how we see McNally contributing to the group revenues of about 22%-25% having share in the group revenues in the near future. Okay, sir. Thank you so much. Thank you. Ladies and gentlemen, in the interest of time, that was the last question for the day. And I would now like to hand the conference over to the management for closing comments. Yeah. Thank you, everyone. Thanks once again for taking out your time and coming to our investor call. We will keep you posted of any subsequent developments. Happy to interact and take any subsequent questions, etc. you have. You can reach us at our investor department, and we will be happy to answer all of that. Thank you once again. On behalf of Tega Industries Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.