Ladies and gentlemen, good day and Welcome to Triveni Turbine Limited Q3 and nine months FY 2021 earnings conference call. As a reminder, all participant lines will be in 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 is being recorded. I now hand the conference over to Mr. Rishab Barar from CDR India. Thank you, and over to you, sir. Thank you. Good day, everyone, and a warm welcome to all of you participating in the Q3 and nine months FY 2021 conference call for Triveni Turbine Limited. We have with us today on the call Mr. Nikhil Sawhney, Vice Chairman and Managing Director, Mr. Arun Mote, Executive Director, along with other members of the senior management team. Before we begin, I would like to mention that some statements made in today's discussion may be forward-looking in nature, and a statement to this effect has been included in the invite, which was mailed to everybody earlier. I would also like to emphasize that while this call is open to all invitees, it may not be broadcasted or reproduced in any form or manner. We will start this call with opening remarks from the management, following which we will have an interactive question and answer session. I now invite Mr. Nikhil Sawhney to share some perspectives with you with regard to the operations and outlook for the business. Over to you, sir. Thank you very much. A very good afternoon to all the participants. I hope that all of you and your loved ones are safe and well in these COVID times. Welcome to the Q3 nine months earnings call for Triveni Turbine. For the nine months, the income from operations of the company has been at INR 5.24 billion with an EBITDA of INR 1.38 billion, with a margin of 26.3%, a PAT of INR 792 million with a carry forward order book as on the December 31st of INR 6.52 billion. As we approach nine months of COVID, this has obviously taken an impact on Triveni Turbine's performance, both from an order booking perspective as well as in turnover. As you can see, the company has weathered this quite well, but of course, given its reach and its perspective of catering to the global market for steam turbines, we are of course impacted by lockdowns, travel restrictions, which our partner companies and countries imposed over the course of the last several months. The global markets have shown very high volatility in these lockdowns, which has led to a shrinking of the global market in Q3 of this financial year 2021 by 64%, while the nine-month decline has been at about 41% decline in the nine-month period of this year versus the same period last year. However, the company has registered improved profitability margins due to cost reductions achieved during the financial year with an EBITDA margin for nine months, showing an improvement of almost 400 basis points and is expected to be maintained in the coming quarter as well. The company's overall order booking has shown a- Request all the participants to please stay connected while we connect Mr. Nikhil back. Ladies and gentlemen, the line for Mr. Nikhil is reconnected. Thank you, and over to you, sir. Thank you. I apologize for that. As I was saying, our order booking has shown a decline of 25% during the current quarter in comparison with the same period of the previous year, with the domestic order booking showing a marginal growth of 3%, while the export order booking declined by over 50% when compared to Q3 of FY 2020. The product order booking position also reflected the overall market trend with a year-on-year decline of 33% in the Q3 product order booking, while the overall order booking for the nine months has been lower by 26%. Even though there has been lower order finalization both in the domestic and international markets, Triveni could maintain its market share and leadership in both the Indian market as well as internationally. On the other hand, the inquiry generation, both in the domestic and in international markets, has remained extremely robust, which is a positive sign as far as the outlook of order booking in the future is concerned. I've been through some of the highlights of our operating performance, but I will summarize them again. There's been a decline in our income from operations by 21% over the same period of the nine-month period, which is compared to the same period the previous year. At the same time, there's been a decline of 8% in the EBITDA, while profit before tax has been lower by 7%. We have also had an exceptional item of INR 185 million on account of manpower rationalization, which has led to a decline of 27% in profit after tax, which was majorly impacted by the one-time exceptional charge. On the domestic order bookings situation, the overall order intake has been higher than last quarter, with an increase of 9% in comparison with Q2 FY 2021. At the same time, this is lower by 23% in comparison to the same period of the previous year. The sectors which have been contributing to the order booking have been the process co-generation sector, which includes distilleries, paints, pharmaceuticals, food and beverage, as well as some demand from the waste heat recovery and steel sectors as well. The inquiry generation in the domestic market has shown an increase of over 34% in the nine-month period of this year, while in the international market, it is lower by 10% in comparison to the same period of the previous year. The overall inquiry generation for the company for the nine-month period has been at 3.6 GW, which is a marginal growth of 3%. In the export side, and I will go into this during the question and answers, we believe that while order booking has been lower due to deferment of finalization as well as certain restrictions placed on travel, which have pushed order finalizations from quarter to quarter, there is a significant amount of pent-up demand, especially in the sectors in which we cater to, as well as our burgeoning sectors of API. We believe that all of these will show fruition in the coming quarters, and we are very optimistic for the export market. In the aftermarket, as you can see, there has been an increase in order booking by 37% at INR 364 million in comparison with the corresponding period of the last year on account of increased volumes of services and refurbishment. On account of the substantial order booking in Q3 FY 2021, the nine-month order booking for the current year has also shown a growth of 7% at INR 1.2 billion over the corresponding period, which we believe is a significant achievement. This is in spite of the same restrictions on travel for the aftermarket. Ladies and gentlemen, we request you to please stay connected while we reconnect Mr. Nikhil. Ladies and gentlemen, we have the line from Mr. Nikhil reconnected. Thank you, and over to you, sir. Thank you. I apologize again. This is not a network issue from my side, but I think some congestion. As I was speaking about the aftermarket and the current growth that we've had in the current quarter, I wish to give some confidence to all of you that we believe that this segment is a growth segment for Triveni Turbine, and we believe that the international market, from both the spares, services, as well as the refurbishment sector, will open up gradually over the coming quarters, and we are very optimistic in securing some large orders in this space in the near future. As I was saying, on account of travel restrictions internationally, the aftermarket segment in the export market was lower by 22% in comparison to the corresponding period of the last year, despite the overall growth in the aftermarket order booking for the company. However, the overall order booking in the aftermarket segment for the nine-month period is almost at the same level as INR 1.6 billion. The aftermarket business in the total sales improved by 5% at 28% during the nine-month FY 2021. As you can see with the current quarter, despite the fact that we had lower sales, given that we had a better sales mix, we were able to preserve margins. In the longer term, we believe that our margin level would be at the nine-month level as opposed to at the third quarter level. This is given our belief that we should be able to increase our turnover in the coming quarters. Of course, as we are currently in Q4, the restrictions on travel which existed in Q3 have also permeated into Q4, and therefore turnover will be similarly impacted in Q4 as it was in Q3. We believe that with travel starting already from East Asia into other parts of Asia, as well as to certain other parts of the world from the middle of this month, we believe that a lot of our order booking hurdles will get overcome in the short term. The company continues to focus on design and development and technology upgradation, both in terms of rotating equipment expertise, but also specifically driven around steam turbine flow path and computational fluid dynamics in terms of new profiles of blades. The company has done significant achievements in terms of being able to upgrade its efficiencies through the course of the entire turbine through multiple modules of development. We will continue to focus on research and development and be a company that puts technology at the center of its product differentiation. As far as the outlook goes, while the overall performance during the nine months is lower as compared to the nine months of last year, the company believes that the overall business growth for the year is expected to be lower. The overall inquiry generation in the export international market was marginally lower than the last year due to lower inquiry generation from certain markets such as Southeast Asia, Central and South American markets. The generation from some markets such as Turkey, Europe, Africa, and the Middle East has shown significant improvements. We feel that the efforts put in by the company in adopting various digital platforms very early in the lockdown enabled the company to maintain a steady state inquiry flow. We believe a strong inquiry book will all go well for the order booking of the company in the coming quarters, and we are extremely bullish on the order booking specifically from sectors such as API in the coming next financial year, FY 2022. We believe a strong order book will all go well for the order booking in the coming quarters. The company continues to maintain its leadership position in the domestic market and has an over 2/3 market share of all orders placed. Also as per an international portal, we continue to maintain our leadership position as the second largest steam turbine manufacturer in the international market below 30 MW, as well as the largest manufacturer for renewable energy applications globally. With the opening up of economic activities, we are extremely bullish on the coming year. While Q4 may get impacted by similar restrictions of travel from a turnover perspective, we believe that the coming year will show a high amount of growth, both on the top line as well as bottom line. While this year we may show a decline in turnover by about 12%-15% or 10%-15%, our EBITDA will be largely flat on a year-on-year perspective. The performance of GE Triveni, our joint venture with General Electric, is continuing to execute orders. The company has a petition, which it has filed with NCLT, and the details are available with the stock exchanges. Please find the list. With that, I'd like to open the floor up to question and answers. 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 touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets when 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 Ravi Swaminathan from Spark Capital. Please go ahead. Sir, thanks for taking my question. Yeah. My question is with respect to the order inflow potential from the PLI scheme. As a second derivative, we will get orders from there. If you can give a broad outlook as to which are the sectors which are showing prospects in terms of giving out orders. It's still early days, but if you can give a broad outlook on what you think might be the sectors which can drive demand for you in the domestic market will be great. No, Ravi, you bring up a very important question here, because and I'd like to split this into two. While you focus on PLI, which is obviously domestic demand, as you would notice for a company, our domestic orders carry a lower margin than our international orders. Having said that, the push that we've seen in the domestic market for orders in this current nine months has been about 27% lower than what it was for the previous nine months of the previous year, of FY 2020. Having said that, I'm going to ask our President, Mr. S.N. Prasad, to give you a little bit of an overview of what he sees as the product order books outlook from the domestic market as well as international. Yes, sir. Thank you, sir. Product order book wise from a domestic market, we are quite bullish. Infrastructure expenditure, whatever in the budget, the current budget also laid down a roadmap for that. We are seeing cement and steel going to be driving this market. Of course, in cement, again, CapEx expenditure as well as efficiency improvement. That is a waste heat recovery option. These are the two segments what we are seeing are going great opportunities for us. Distillery is another segment where we have a substantial inquiry base, and today we are talking of closer to around 600+ distillery licenses issued across the country. This is another segment which is going to drive FY 2022 order booking from our domestic market. Coming to international markets, yes, we have some pockets of markets where our acceptabilities are quite well, and our market shares are over 80% in those markets. We are seeing biomass based and waste to energy markets and MSW based power plants. Apart from API segments, these are the driving markets for us in international markets. Of course, API is a key focus segment. Today, we have been registered by almost all EPC OEMs in India, and 70% of OEs and EPCs and consultants approved us globally. That gives a good inquiry book for us. As we know, oil and gas segment, order gestation periods are quite long compared to the thing. Time overlaps there, but we are quite confident. The way our offers are received and technically evaluated, we are quite confident there will be a substantial improvement over acceptability, and we'll be able to get those order bookings done through API segment as well. Overall, we are seeing next year going to be substantially high order booking year for us by seeing the inquiry pipeline and the way techno-commercial alignment happening last four, five months time. We are quite bullish for next year in terms of order bookings. This year, what is the size of the market, domestic market? Next year, what kind of growth do you expect in terms of the market size? Last year it was some 700 odd MW also. No, this year has seen a decline in the overall market by about 40%. That's still for the nine months. We still have to wait for this quarter to finish, but it won't be as bad as for the nine months. Having said that, our inquiry book suggests it's a significant amount of pent-up demand. This is not only in India but internationally, as there's a lot of liquidity and CapEx will flow through. I think that from a year-on-year perspective, as we may end with a similar order booking level, slightly higher order booking level as we entered at nine months, we would expect next year to deliver a significantly higher order booking than we currently have. Significantly. Got it, sir. My second question is with respect to commodity prices. Yes, good question. Some pressures. No, of course, there are pressures. There are pressures on copper prices, which have increased substantially, which directly impact some of our products. More so even with steel. Steel is moderated from the peak. The company follows a long-term pricing policy, and so very frankly, when prices crash, we don't squeeze our vendors. We work more from a perspective of volume. To the extent that commodity price increases would impact us, we would pass that on to our customers. Largely, we would say that we would work in a balanced manner, and short-term price volatility on commodities will not impact us. Got it, sir. So far, but we wouldn't see margin pressure at a gross level because of the commodity price increase. Is my understanding correct or? No, largely because orders are taken back to back. When we take an order, we already have the prices of all the components and bought-out equipment already registered to a large extent. As prices increase and however margins or increases may mean to our suppliers or to us ourselves, we'll pass those on to our customers. Largely, we're not seeing a significant increase because there's a significant amount of value addition that goes in. The pure amount of copper or steel that is part of our products is not substantial to warrant more than a 1% or 2% price increase to cater to even these drastic price increases that are taking place in the market. Okay. Got it, sir. Yeah. Thanks. Thank you. The next question is from the line of Ahmed from Unifi Capital. Please go ahead. Yeah. Thanks for the opportunity. A few questions. Firstly, could you quantify the quantum of shipment deferral which happened in quarter three? We can take that offline. It was three or four orders that were deferred, which had an impact, I think, to the extent of maybe INR 20 crores-INR 30 crores, which was direct, which will take place in Q4, but there may be some slippage from Q4 on to Q1 also. Is it because of the logistics challenges that they're seeing across sectors? Is that the same reason which led to this deferral? It is, but it's also driven by the readiness of clients. Okay. Sure. Second thing is, you highlighted your market share in the product market. Could you help us understand what kind of market share we have in the aftermarket and the refurbishment segment, which will help us to appreciate opportunities that lie ahead of us? I don't think there's any data which actually puts together the entire services market for steam turbines for all manufacturers. I would say that our entry right now is extremely low, in possibly maybe 1% or 2%, 3%, something like that. The potential is enormous, if I could give you an idea. Of course, it's very difficult to gain very large market share here, but we believe that this segment allows us to cater to gaps in the market where OEMs which are no longer in business cannot provide effective solutions to clients. We think that this suits our balance sheet by being an asset-light business for us to provide a technology-intensive solution to customers to upgrade their capabilities and efficiencies, while at the same time providing resilience and robustness in the solution. On our margin profile, now given that in our current order book, the share of export is actually coming down, and as you highlighted, the margin profile in export is much higher. Would that be a risk on our overall operating margin in the next year? The export order book is kind of declining a lot in the current period. No, you're right. The decline in order book from the export market, as it currently stands, is made up by a higher percentage of aftermarket as a share of order book. Also from a perspective of execution, as you can see from Q3, where we had maybe 28% of our turnover coming from the aftermarket segment. Even if that comes down a little bit by a couple of percentage points once turnover of the product segment grows, the margin profile would almost remain the same because of the aftermarket contributing more towards turnover. You are right that, a lower international order execution would lead to a lower product margin for the product business. Sure, sure. Overall for the company, I think it will be managed within the range. Quarter to quarter, it will move, I think visibility for a year's period, we would be able to maintain a higher margin level as to what I've already suggested. And finally- Mr. Ahmed. Sorry, [inuadible]. May we request you to rejoin the queue, please, for any follow-ups? Thank you. The next question is from the line of Manish Goel from Enam Asset Management. Please go ahead. Sorry, Manish Goel from Enam Holdings. Sir, Manish. Hi, Nikhil. Just a couple of questions. On distilleries, I believe we have been hearing of increasing opportunity. As mentioned that there are 600 licenses issued. If you can a bit dwell upon, in terms of value-wise, what is the opportunity available and also on the other side, a lot of these distilleries which are coming up with the support of the government with tripartite agreement. A lot of these are coming at cooperative levels. How comfortable are we working for them? If you can just dissect our addressable opportunity and what would be the value terms there. Okay. Well, distilleries, as with most of the process co- generation sector, operates in the, I'm going to say, in the 4 MW to 10 MW range, 4 MW to 8 MW range. They're small turbines, very small turbines. Which is where Triveni has an extremely appropriate solution and a very low-cost solution as well for this sector, because it's a very price-sensitive market. Out of the 600 licenses, I won't fathom a guess as to how many will actually come up. The segment is lucrative, not only from perspective of install base, but because it gives reliable aftermarket revenue. From a payment perspective, Triveni Turbine is very conservative, and we ensure that we get full payment on dispatch or at worst, a LC. The cooperative sector has been clients for us, not only for the distillery side, but also for their sugar cogeneration and other segments. We have dealt with them in the past, and we have had no problems in terms of our payment structure. Sure. As you're ordering, have we started seeing order inflows from these distilleries? Yes. I mean, our group company, Triveni Engineering, is also in the sugar business. Yes. Yes, setting up ample distilleries. No, Nikhil, I'm just trying to understand that this has been talked for quite long, and finally, I believe things are taking shape. What I'm not clear as to, has the ordering momentum picked up from the distilleries, and can we expect this to sustain for next couple of years? I think that this won't be a big bang push, but it will be a sustained amount of demand from the sector. Yeah, because even government is now encouraging distilleries from grain-based and other sources, so from that perspective. Those are the sources which also provide us demand. It's not only the molasses sector. Sure. One more question on your guidance, which you have kind of maintained what you have given in Q2. I was just trying to understand that because last year Q4 was a lower revenue- Yes. And profit quarter. Yes. On a low base also then, if I'm just trying to do some math, on that low base also, kind of we are not seeing good growth based on your guidance of 10%- 15%. Is it that we are taking a conservative stance at the moment or? No. Q4 to Q4, we will do much better. You're right about that. In an overall level, let Q4 happen. I think that what we were cautioning on is the fact that there are pressures for finalization of orders in the international market, which has impacted our order booking for the nine months and possibly for the year. Also equally from a dispatch perspective. That is turnover, because we account for turnover only on dispatch. Sure. These are things that we'll have to wait and see, but I think at this point in time, it's not a question for me to caution you, but this is just the reality of where the situation lies for the year. Sure. A lot of this will get eased in the coming quarters. Sure. Appreciate that. Just last, again, like you mentioned, that inquiry book is quite strong with lot of pent-up demand. Yes. Is it that there is a possibility that we can see bunching up of order inflows probably in this quarter or early of the next quarter? We're looking in Q1 and Q2 to be extremely good, both from a order booking as well as revenue and profitability perspective. Those will come about just driven by the dispatch schedule that we have, but also given the visibility that we have in terms of travel and the assurances that we have by some customers or finalizations. Thank you, Nikhil. I'll come back in this one. Thank you. The next question is from the line of Harshit Patel from Equirus Securities. Please go ahead. Hi, sir. Thank you very much for the opportunity. Mr. Patel, if you can speak closer to the handset, please. We are unable to hear you. Hello, is this audible? Yes, I can hear you. Sure. Sir, my first question would be that, sir, I understand that we don't have much CapEx requirement as of now. I mean, we have a couple of state-of-the-art manufacturing facilities, and we have ample underutilized capacity. Sir, now we have more than INR 300 crores of cash on our balance sheet, and we don't have much CapEx requirements. What we are planning to do with that? Sir, is it that we could also venture into some adjacent categories like generators or maybe control panels, et cetera? Is there any thought process towards that? That's a very good question. Currently, I have to say that the board has not considered any proposal either to redistribute this money to shareholders or to put it into any inorganic opportunity or as well as organic expansion. We would, of course, try to use as much money as we can organically by pushing more money into R&D, into new product lines to shore up capabilities. In the speed and to look for growth, there may be opportunities that we may look at, but what is paramount is that we will keep our balance sheet in consideration. I think we are very happy that we have an asset-light balance sheet, so we would look at businesses or adjacency businesses where the characteristics of the balance sheet are similar to what we look at in Triveni Turbine. I don't know if control panels or generators actually conform to that. Sure, sir. Sir, my last question was a bookkeeping one. I understand we have INR 1.4 billion of order book in the aftermarket segment. How much of that would be from exports? I think the data is with you. You bring up a very good point. I'd like our President, Sachin Parab, aftermarket, to give you an idea of what he views is the order booking, both from a domestic and international perspective for the aftermarket segment. Sachin? Yeah. Good afternoon, everyone. This is Sachin Parab from Bangalore. See, our share of domestic market for the full year is likely to go up to about 76% of overall customer care order booking, and this would be higher than 67% share last year. Basically, because of the inability to travel overseas extensively, the restrictions are in place in many countries. The business that we have been able to get is more from the domestic market, and therefore, the share of domestic has gone up in this financial year. However, as we move forward, we are expecting ease of travel restrictions, and international travel will be much easier from quarter two onwards. That is our outlook as of now. We expect that in the next year, our share of orders from the domestic market will come down to previous years levels in the mid-60%. This is despite the growth in the overall order booking that we anticipate. Yeah, we are looking at a buoyant growth. Next year, we are projecting large double-digit growth in order booking for Aftermarket Business. Also, a lot of it to be driven by our Refurbishment Business, which has picked up very well in FY 2021. Thank you. Sure, sir. Thank you very much for the inputs. Thank you, sir. Thank you. Thank you. The next question is from the line of Rishit Shah from NAM Securities. Please go ahead. Hello, sir. Good afternoon. Thanks for the opportunity. Two questions. First, regarding basically the GE part. In GETL, what are the kind of order inflows or the inquiries that you're seeing right now? The inquiries are there. The order booking is, I think, pending. The joint venture is continuing with its normal operations as it currently stands. From a visibility perspective right now, there are inquiries and orders chase ups, but there is no finalization that has happened in the current quarter. Okay. Understood. Secondly, as you just mentioned, basically the refurbishment is seeing good traction along with an expectation of large double-digit growth in next year in the aftermarket segment. For the next two, three years, do we see any change in the share of aftermarket or increase in share of aftermarket in the overall revenue as well as order booking? Well, I think if you look at the history of Triveni Turbine, as our install base has grown, so has our revenue from services and spares. The refurbishment segment was a new segment in aftermarket, which could help grow further. If I look back four, five, six years ago, we started off with a mix of about 80/20. 80 from the product side, 20 from the aftermarket. Steadily, despite the growth of the product dispatches, we've been able to increase the share of aftermarket as a percentage of overall sales to, I think this last quarter, 28%. That may be anomaly, but I would say 26%-27% is something that we can target in the short term. Then it incrementally growing by a percent or two as a share over the medium term. We do believe that there's growth in this segment for us. Right. This in a way would also drive margins going forward. Yes. You're right about that, but the margins are very healthy in the aftermarket segment in all three. Having said that, we as a product manufacturer also, and this is through our own research, we believe that we are one of the only turbine manufacturers which are profitable on the product, because most companies actually end up selling the product at near loss so that they can capture the aftermarket. Sir, secondly, about basically the new developments. Any technological new development or upgradation that we are working on right now or may be seeing in the coming year? We've already spoken about in the previous call, so I didn't want to reiterate the same points. Technology and our focus on technology is very much at the core of our value proposition. This stems not only from value engineering, which is to take cost out of the product, which is a continuous process, but also breakthrough technological development for new products as well as for new components in the system, which are all IP protected. Our IP basket and patent basket is also increasing continuously year on year. Right. Got it. Is that right? Right. Okay. Thank you. Thank you. Before we take the next question, a reminder to the participants, please limit your questions to three per participant. Should you have any follow-up, we would request you to rejoin the queue, please. The next question is from the line of Amit Mahawar from Edelweiss. Please go ahead. Hi, this is Amit from Edelweiss. Hi, Edelweiss. Hi, Nikhil. Nikhil, I have two questions. First is, global oil and gas market, is that one of the largest segment? What specifically are we trying to penetrate that market, which is dominated by the global players? I know we've been, in last couple of years, deploying a lot of resources in that segment, but anything that you would like to share, that's number one. The second question is for the further IP investment. How much of our Triveni service portfolio in value terms, roughly, or in percentage, comes from non-Triveni turbines? Thank you. Oh, okay. The first question is about API. To give you an idea of the overall market in our estimation for drive turbines in the API segment, which could be for either API 611 or 612 applications, is somewhere in the region of between 1,000-1,500 turbines a year. Now, these could be for applications from blowers to fans to driving compressors, a variety of different applications. In fact, over the course of this just past quarter, we've had good success in the API market internationally. We are already seeing some traction coming through. A lot of these orders are lumpy because they order three, four, five at the same time. We are anticipating good momentum from the API sector going forward, driven by a greater cost consciousness in the oil and gas sector. I think no one is expecting oil and gas prices to be on the upward trend, I think the refiners and other processors are also anticipating to be much more cost conscious on their CapEx spend. It is easier for us to register because safety is one of the most paramount considerations here. While at the same time, registration with these oil companies is an arduous task. I think we're quite optimistic here. The market is large. We've seen some good traction already during this current year, we think in the short term, we'll be able to show better traction here. This, of course, is not a megawatt market, we can't define it in terms of megawatts. On the non-Triveni market, refurbishment is what we call it. Refurbishment constitutes, I'm going to say, about 15% of our aftermarket business. Sachin, is that right? Sir, slightly better. The trend is of a growth in that area. To give exact numbers in terms of order booking of refurbishment business as a share of the total aftermarket business, for FY 2020, we were at about 27%. We are projecting that for the current financial year, FY 2021, it will be about 31%. Going forward, we are projecting about 35%-37% of our aftermarket business would come from a refurbishment business, which is basically non-Triveni services. Okay. Thanks very much, Nikhil and Sachin. It was very helpful. One last question if I may, Nikhil, a follow-up to the first question. Any steps that you think we are taking, we should take maybe allocation of more resources, manpower in that direction, because that is one area which is the largest segment and we've been excellent on biomass and. No, you're right. Other teams. Yeah. Amit, the thing is, actually, Triveni Turbine is extremely good at entrepreneurial selling, which is getting in front of a customer and making a value proposition known to him. In the oil and gas sector, the sale process is different. It is very bureaucratic. It is registration and tenders, regardless of who we're talking about. It follows a route which is very bureaucratic, and so we have to go through the process, which is a little bit longer. Once we get through it is better. I think there were questions earlier about PLI and Aatmanirbhar. Very frankly, over the course of the last year, we found it extremely easy. We found it simpler to get registration with Indian companies, which was far more difficult than in the past. Okay. Thanks, Nikhil. Thank you. The next question is from the line of Karthik from Unifi Capital. Please go ahead. Hello. Hi, Karthik. Yes. on the export market o n the export market, just wanted to check. Because travel restrictions, we are not able to get orders there. Is that market share being occupied by some of the regional players in those markets, or it will be easy for us to recapture the lost market over there? No. Let me correct that misperception. There's been a decline in order finalizations from our perspective because we haven't been able to travel. It's not as if we're not getting any orders on a remote basis. We're getting orders on a remote basis, but they're not as many as we think that we could have gotten as if we were able to go and sit in front of the customer. The overall result is that we've seen a decline in the global orders placed by over 50%. This is also reflected in our order intake going down by that same amount. Actually, our market share, both domestically and internationally, has remained approximately the same as we thought. Sure. Thank you. Thank you for clarifying. Thank you. The next question is from the line of Abhisar Jain from Monarch AIF. Please go ahead. Yeah. Hi, sir. Thanks for the opportunity. Sir, just wanted to know from you that the capital allocation decision, which I think you had alluded to in the previous calls also, that company would be coming up with a plan which would have significant kind of clarity for the long term, next three to five years. Can we expect that decision from the board by the end of this fiscal year? No, I don't think there's anything in front of the board right now. Okay. I think that there's a lot of organic growth that we are focusing on. Inorganically, really, we need to make sure that it fits our capabilities and something that we can drive forward to success. Right, sir. I understand. Sir, in that sense that, maybe you can correct me if I'm wrong, but organically, the CapEx requirement would not be too high, right? Whereas our cash flow generation as well as our outstanding cash balance is going to be much more significant than what we will require organically, right? No, you're very right. We're generating between INR 150-INR 160 crores of cash, free cash. Correct. That will get added into our cash reserves. I think that this is post any routine CapEx or replacement or maintenance CapEx that we have. Right, sir. Sir, effectively, what I am trying to understand is that, see, in the past, we have taken a route wherein if we don't have a large CapEx for either organic or inorganic, in this case, organic may not take much, then we have chosen a way out to be able to pay back to the investors, be it a buyback or a dividend, right? Definitely. Those options will obviously remain forefront is what I want to get from as a direction. I know the board will take a call, but just as a direction. I think the options you laid out are the options that will be put forward to the Board. All I can say is right now, there's nothing under consideration because the alternates really haven't been fleshed out. I think that we probably have our quarterly Board meeting in May for the full-year results, and there may be some clarity then, but I would think that during the middle half of the year, we'd have a great clarity as to where we think our capital allocation policy will lend towards either deployment in business or return to shareholders. Okay, sir. Understood. Sir, just one clarification on the export side of the revenues. I guess we have been getting the MEIS duty benefits. Could you give some clarity that will there be some impact of that or the contracts are such that that was given when it was available and now since it will not be available, so we'll be able to bill it to the customer? There is a decline in MEIS, and so that does impact our margins, but it has been made up because of a better product mix as well as certain cost reductions that we've had. You're not seeing it in the results. MEIS has come down substantially, and that has impacted margins. Having said that, we have been filing but have not been accounting for any of the new incentive that we are putting through, which is the RoDTEP, whereby the Ministry of Commerce has not laid out the slabs by which we can actually apply for benefits. There are certain other export benefits such as packing credit, which the company avails of. All of this is, I think, a little bit less than the MEIS scheme. Sure, sir. Understood. Sir, just one last question on the staff cost. With whatever rationalization we have done, we now are at the optimal run rate, and we can assume that to be the run rate going forward, or there can be any plus minus? Actually, the company, the VRS scheme that we did was for workers in our shop floor, so as to move them either to officer category and have a caliber of graduates in our shop floor, non-unionized. We need to enhance our capacity on the technological side, as well as sales and marketing for newer product market segments as well as geographic needs. We will see wage costs go up, but as a percentage of sales, I would not see a change. Understood, sir. Thank you so much, and best of luck. Thank you. Thank you. The next question is from the line of Dhiral Shah from PhillipCapital. Please go ahead. Good afternoon, sir, and thanks for the opportunity. Sir, out of the overall order book which we have currently, can you segregate it on the sector-wise basis? No, I don't think we do that. To the extent that the information is there from the international and domestic fronts, you have that available. To give you a broad idea, our international market is dominated by renewable energy markets, which is from the waste-to-energy and allied sectors of biomass waste IPPs, such as palm oil or sugar or a variety of different biomass. In the domestic market segment, we have good order booking from the distillery segment, process co- generation, which includes paints, pharmaceuticals, and other process co- generation requirements. We see recovery from the cement sector, which is an efficiency-based expenditure, not so much for greenfield operations. We've seen some orders from the steel sector as well. That's the visibility I can give you. Okay. Sir, from the domestic market, apart from let's say steel, sugar and cement, which are the other sectors which gives you confidence that you will get incremental orders? You see, as Mr. [Bhavin] said earlier, we believe that the market is going to expand generally. Every sector will give more orders firstly, and then there will be a greater focus from what we believe is greenfield cement and steel. Distilleries will be a very important sector also to the domestic market. Okay. Sir, lastly, on the aftermarket side, how frequently are products consumed? Actually, we're very honest with our clients, very frankly, it's based on their usage. Every customer uses their turbines differently, it depends on the rigor and maintenance by which they put into maintaining their turbines. In general, you could say that each turbine over the life of its turbine would give you about twice its revenue on the aftermarket. What is the average life of the Turbine, sir? About 20 years. 20 years. Okay. Thank you so much. That's it from my side. Thank you. The next question is from the line of Pooja from ICRA. Please go ahead. Hi, sir. Thank you for the opportunity. My question is more with regards to, firstly, any future additional revenue avenues that you're looking at in terms of diversification, and also in terms of demand, are we looking more towards domestic given the current scenario and given the traction that we see in cement, sugar and steel? Is there a focus more towards domestic for the next year as well? No. Our push is to capture market everywhere. As you would understand and as I answered the previous question, the revenue that comes from the aftermarket is based on your installed base. We would like to take installed base wherever we find it. The fact that India actually saw greater growth in a relative perspective of order booking in the first nine months was based partly on the fact that we are here, and also the form of which the orders were placed was more conducive to us. Very frankly, our focus is to focus on the domestic market as well as the international market for every order. On the newer areas of growth, we believe that our current expansion into API segments from the products will provide us short-term growth. On the longer term basis, there are product technological developments that we will be bringing to market in the near future, in the next couple years, which should give us some momentum. The aftermarket side will continue to give growth, not only for our old installed base through spares and service, but in our refurbishment segment, which will cater not only to the steam turbine market but to other rotating equipment. We believe the market for other rotating equipment for the refurbishment side presents another great opportunity, which we will give more visibility on as we flesh out our ideas here. Okay. Sir, one more question as a follow-up. In terms of the geographical spread within India, would there be any certain areas, like if you could say in terms of north, south, east, west? No, very good question, actually. We've seen expansion in inquiry book by about 36%, but all of that has been driven only by one geographical area, which is West India, which is Gujarat and Maharashtra plus. Okay. The rest has seen a marginal decline in inquiry. Okay. Thank you, sir. Thank you. The next question is from the line of Bhavin Vithlani from SBI Mutual Fund. Please go ahead. Thanks for the opportunity. Sir, a couple of questions. One is, given the current situation, do you feel that the need for more feet on the ground, and are you actually investing on the sales and BD front to have more presence internationally? Yes. Firstly, actually we follow a hybrid model where we have agents as well as our own feet on the ground to supplement them. We found this to be very successful model, actually it has allowed us to generate orders through this pandemic where lockdown was instituted. We think that the model that we have is appropriate for us, because otherwise the overhead of spending in one specific geography would be too much for a company of our size. This is a more appropriate mechanism, also it's incentivizing people in the right manner. This does not take away from the point that you bring up, which is, do we need more feet on the ground? Yes, we'd always need more people to be able to help spread our visibility. Ultimately, what we suffer from the international market is visibility to orders. We need to increase that. I don't know if the question is only feet on the ground, but it will be through a variety of different strategies that we have to increase our visibility. Sure. Thanks. As you would understand, Bhavin, we don't lose many orders on the international market. It's just we don't get the visibility to quote to them. Understood. The question was, as you're targeting a higher share of the refurbishment market, and that calls for seeing the customer, visiting the facilities, explaining to them the benefits. No, no. On the aftermarket side, there is a drastic need for enhancement of resources. Sure. The second question is, we saw L&T winning considerably large orders from Barmer Refinery. A couple of years back, we also got qualified with Engineers India. The orders, are they placed? If yes, have you lost it? Prasad, if you are there, could you comment on it? Yes. Still orders not yet placed, but we are also in the fray. Technical negotiations going on. Probably it may take another month to two months' time when it comes to commercial. Sure. How large could be this opportunity in terms of revenue? These are quite large, around five sets. All put together, coming closer to 20 machines plus. Again, as you know that based on a drive application and all these things, the technical alignment meetings are getting prolonged. Sure. These are my questions. Thank you so much. Thank you. The next question is from the line of Bimal Sampath, an individual investor. Please go ahead. Yeah. Good afternoon. My question was similar to what he had asked. Now, since you are saying oil and gas is difficult to crack, are we aligning with somebody else whether individually we are doing it or we are partnering with, say, L&T or somebody like that. Second question is on this supercritical turbine. Can you please explain a bit more in detail? Okay. On the first segment, we don't partner in any manner. We just found that we have a particular route to market with any other integrator. It would depend the form in which it comes up, and for example, if it's a blower manufacturer who has won the tender for the application, then we would quote to them, or we may have even had a pre-tender tie up. It's essentially, we are not expanding our scope into the API markets to include other ancillaries. Our scope of supply is only the drive turbine. It would all depend on the form by which the order comes out or the RFP comes out. On the supercritical carbon dioxide market, we believe that the value proposition here of having higher efficiency and lower cost is weighed out. Ultimately, I would suggest that you look at some YouTube videos because the technicality is there for you to know. The progress on R&D here has been steady. We're still on track the way that we want to do it. We think that the value proposition here is essentially to reduce the cost of our installed system while at the same time give higher efficiency and so much better life cycle value proposition. Also, you have applications here where you could go for a concentrated solar thermal application, which could come down to cost levels, which would be similar to that of photovoltaic. There are other non-industrial applications which also make it quite lucrative. When, two years, three years down the line, will we see visibility from this sector, or it will take longer? I think the first timeframe we put is what we would like to see it also, but we'll have to wait and see. Okay. Thank you. Thank you. Thank you. We take the next question, a follow-up from the line of Manish Goel from Enam Holdings. Please go ahead. Yeah. Thank you so much. Just wanted to get a sense on our cost base. We did mention that in our presentation that cost control and value engineering efforts are being put. One is that on employee cost, definitely we see a decent reduction. On other expenses, it's probably if you look at the current quarter also, it has not declined much. It is almost same at INR 31 crores. Is there any one-time in this quarter or should we look this as a normalized run rate going forward? I think there are certain elements of administrative costs which are built in here for be it COVID, et cetera, which will come out. There may be some legal expenses as well, which are non-continuing on a more routine basis. I think that if you look in from the P&L perspective, we will try and reduce our administrative and manpower costs as is necessary. When we look at the balance sheet, you'll see that actually our reduction in inventory has been quite substantial. We've gone and spent a lot of time technically to align to a more modular form. Therefore, we've had much more inventory liquidation and therefore more cash generated out of that. If you look at from our other current liabilities, we have, I don't know, about INR 170 crores, INR 180 crores of customer advances, which is pretty much all that that segment makes up. We have a good cash flow mix coming from our customers, despite the fact that we have no debt and cash on the books. Cost control-wise, I think it's continuous. I think our focus on cost control is more from the product. How can we reduce material out? How can we align our subcontractors and vendors to reduce their costs as well? 50% of the value of our purchase order is bought out equipment. Sure. Administrative costs, et cetera, are things that, yes, you're right, we have to focus on. I think they're consequential of just the circumstances that we're in right now. Okay. Fair point, Nikhil. Thank you so much. Thank you. The next question is a follow-up from the line of Karthik from Unifi Capital. Please go ahead. Yes, thanks for the opportunity again. This question is in context of the guidance of high double-digit kind of order book growth in the next financial year. If I look at our closing order books in the last, say, three financial years, it's been in the band of, say, INR 700 crores. There's been a bit of decline in the current year. Should we expect a good increase from the INR 700 base, which has been our closing order book for the last few years? Well, even if you're looking at the 650 base, our expectations are that it will be a very good double-digit growth. Not in the teens. Sorry, not in the? In the teens. Okay. Sure. Thank you. Thank you. Ladies and gentlemen, that was the last question. I now hand the conference over to the management for closing comments. Thank you very much, ladies and gentlemen. Thank you for joining the Q3 nine month earnings call for Triveni Turbine. I wish you all are safe and please be well. Thank you very much. Goodbye. Thank you. Ladies and gentlemen, on behalf of Triveni Turbine Limited, that concludes this conference. We thank you all for joining us, and you may now disconnect your lines.