Welcome to the Inox India results conference call hosted by ICICI Securities as a reminder all participant lines will be in the listen only mode there will be an opportunity for you to ask questions after the presentation concludes should you need assistance during this conference please signal the
Operator by pressing star and then zero on your touchone phone please note that this conference is being recorded I now now hand the conference over to Mr Mohit Kumar from ICICI Securities thank you and over to you sir thanks Darwin on behalf of I I Securities we welcome you all to the Q32
Q3 fy2 24 un news conference call of IO India to discuss the result today we have we have with us Mr sidar Jan director Mr P executive director Mr Deepak aara chief executive officer Mr pan La CFO Mr Sunil Lati invest relation officer let start with a brief opening
Remarks followed by K prior to that I hand over to for dis thank you moit and good evening everyone I’m pleased to welcome you all to wiof India limited result conference call discuss the Q3 and 9 month Financial numbers please note a copy of the disclosure is available in the
Investor section of the website as well as on the stock exchange anything said on this call which reflects the outlook for the future or which could be construed as a forward-looking statement must be reviewed in conjunction with the risk that the company faces with this I
Shall hand over the call to Mr Deepa Kara the CEO for his opening remarks over to you sir good evening and thank you mik Kumar and Krishna I’m Deepak aara from Ino CVA good evening everyone and Hearty welcome welcome to all the investors and analyst on the first
Result conference call of anox India limited Forst the listing as you must be aware that we recently got listed uh in stock exchange on 21st December 2023 and this is our first quarterly result post listing thank you for taking the time out and participating in our result conference call the unaudited
Financial result as well as the investor presentation for Q3 and 9 months FY 24 have been uploaded on the stock exchange hope you had a chance to review the same for the benefit of all who who are listening to us for the first time I like to brief and share the key
Highlights of our business inov CV has 30 years of experience in design manufacturing installation of kenic equipments across the globe making us the world’s leading provider of customized kenic equipments today our business division include Industrial gas LNG C scientific Division and are working continuously towards clean energy initiative in LNG liquid hydrogen
And Fusion Energy over the years the company has developed engineering expertise coupled with quality product offering and unwavering customer service that has helped in CVA to make its band value in this space the company executes large tkey projects and manufactures specialized nonic equipment also the company has a large scale serial
Manufacturing facility at four locations in India and part manufacturing and service distribution from one of the location in the field with service distribution extending to Netherlands as well very recently the company undertook a Greenfield capacity addition and set up its fourth manufacturing facility at Sal Gujarat at the project cost of 100
Crores funded entirely through our inter AC optimize operation the company has continually undertaken CeX to support growing demand uh into new application areas and strengthen the design function over the years the company has delivered its products and services to over 100 countries key geographical areas being us Europe Saudi Arabia Brazil Korea UAE
Australia to name a few during 9 month fi 24 the company recorded highest over export ever export revenue of rupees 51 CR up by 75% year on year supported by Bo Market situation worldwide for our existing products used in industrial gases lngg hydrogen and evolving new other applications we have
Robust order backlog of rupees 1043 CR on 9 month f524 with 50% orders from industrial gas 23% orders from LG and balance 27 orders from cry scientific division export orders comprise 47% of the total order backlog we have actively participated in various public sector tenders which are at different stages of
Awarding in addition we are engaged in discussion with numerous private customers for building LG infrastructure let me briefly take up each of our business divisions separately industrial gas industrial gas registered a quarterly q324 Revenue of 2 214 CR and 9 Monon revenue of 571 cres contributing 60 5% of the total
Income under this division we manufacture cenic tank and system for storage transportation of industrial gases such as oxygen nitrogen Argan hydrogen CO2 Etc the various product manufactur under this segment are storage tanks transport tanks micro bulk units vaporizers cry biot tanks storage and Tre gas efficient equipments over
The years Inox CV has continually moved up the value Chain by developing expertise in designing and Manufacturing plasic equipment from 1 lit capacity to 1 million L capacity LNG division LNG division registered a quarterly Q3 f524 revenue of 75 crores and 9 month Reven of 247 cres contributing to 29% of our
Total income under this division we manufactur standard engineering equipments for LNG storage distribution and transportation various products manufacture under the segment are storage and regas system for industrial applications marine fuel gas system lcng fueling station vehicle mounted LNG fuel tanks LNG infrastructure for automotive applications mini LNG infrastructure Etc
Certain Marky projects executed by the company are installations of mini LG terminal in Scotland UK uh uh in 2019 as well as commissioning of LNG dispensary station in the H on C scientific area C scientific uh registered a quarterly Q35 24 revenue of 6 CR and 9 month revenue of 37 CR
Contributing to 4% of our Revenue under this segment we manufactur equipment for technology intensive applications and T solutions for scientific Industrial Research involving kagic distribution including equipment for Fusion research the various products manufactured under this segment and satellite launch fac launch facilities cenic prion system and research MRI C fusion and super
Conductivity Etc certain Niche projects undertaken by the company as we manufactured and delivered an MRI crat for the government of India project the company was awarded the contract for development of coric equipments for second launch pad project of ISRO in the year 1999 in 2018 the company manufactured installed and commissioned kavac thermal
Vu system for is andan we also are proud contributors to the world’s largest Fusion research project by providing critical equipments nearly 4 kilom long complex jacketed piping to maintain Ultra cold super conducting magnets operational under all conditions to Ether project in France Europe let me share in brief on the
Overall financial performance of our company I pleased to inform you that the company recorded the highest ever revenue of rupes 875 cres and Aida of 270 CR during 9 months 24 the major reason for increase in the robust performance by all our major business segments historically on an
Analyz basis the revenue of the company has been growing at a c year of 27% over the previous two years and F fat margins during the 9 months are 25% and 177% respectively that reflects your highly specialized customized and Engineering Solutions and favorable product mix I’m happy to share that we have been
Dividend paying company for the last few years the cap said we have spent total of rupes 103 crores over the last three years years up to fi23 which has been made through our internal acur only due to high cash flow generation over the years we are de free net cash Surplus
Company having cash and cash equivalent available on 31st December 2023 of nearly rupees 235 CR last bit of the financials I would like to highlight that we are proud to have best inclass return ratios with return on Capital employed Roc 37% and return on Equity Roe 28% on
Fi23 let me now share the certain key recent business developments adani total gas in nox has entered into a mutual support agreement under which the entities mutually Accord a prefer partner status for the delivery of LNG and lcng equipment and services for identifying and exploring possible collaboration opportunities for
Strengthening the L ecosystem in India this collaboration with Inox CVA shall help shall help adani total gas in undergoing phase transition of long haul heavy vehicle buses currently using diesel for LG helping over 30% reduction in CO2 and greenhouse gas emissions also we help facilitate FASTT track setting
Of Leng station across the country for boosting the confidence of f operators to use LNG as a Transportation here very recently we signed anou with inter University accelerator Center an autonomous Institute under the university Grand commission Ministry of Education government of India towards collaboration for the development of technology for the design and
Manufacturer of superc conducting magnets based for clinical industrial defense research applications the Synergy is to make India one of the global players in manufacturing a superc conducting magnet based system including Next Generation MRI magnets the technology can be now indigenously developed such as complex systems can be manufactured in India now
Recently we also got following three patterns registered one lmg dispensing station second invention on sliding spacer in the cenic piping and third displacement decoupling Arrangement or double wall kenic piping system these patent shall strengthen our leadership in kenic IND and differentiate our products for Superior performance penic landscape the
World is talking about hydrogen as the cleanest Fuel and we fed into this segment since 1999 we are the first Indian company to manufacture trailer SED hydrogen transport designed jointly with ISRO uh organization we offer complete solution for hydrogen storage transportation and fueling infrastructure with the proposed law of
National hydrogen Mission we anticipate good Traction in this segment and we are happy to share that we are well placed to optimize the huge opportunities in this space going forward we anticipate high demand for coron gases from the metery sector oil sector gas chemical industry decarbonization Electronics Health Care
Space space and satellite Etc in addition a shift towards cleaner fuel sources such as LNG and hydrogen in industrial and transport will provide boost to our products for LNG we expect strong demand from Asian countries like India South Korea and other Asian countries which are increasingly transitioning from energy sources such
As coal cude oil to nuclear and gas at Ino CV our focus is on users in remote uses users in the remote island as well as industrial consumers with no access to natural gas pipeline pipelines last I would like to acknowledge and be thankful to all our stakeholders who are
Associated with nox CVA above all our employes I’m extremely thankful to nox team for delivering the resilient work and striving for excellence over the years this concludes my planned remark and I now I would like to hand out the call to pan loger to take us through the
Financial highlights before we open the floor for q& thank you deep sir and good good evening everyone a warm welcome on our first result conference call I shall summarize the Consolidated financial highlights for the quarter and 9 month ending 31st December 2023 during the quarter total income was
295 crores a growth of 18% from 250 crores of Q3 f23 during the quarter iida was 71 crores uh a growth of 23% from 58 crores in Q3 FY 23 Martin was at 24.2% as compared to 23.3% in Q3 fi23 the Improvement in profitability is on account of pricing
Time to time and order to order normally it ranges between 21 to 24% during the quarter P was at 49 CR a growth of 19% from 41 CR of Q3 fi23 during 9 month fi 24 the company recorded the highest ever total income of 875 crores a growth of 18% from 74 CR
In 9 month fi23 during 9 months f24 the company recorded highest ever divida of 217 crores a growth of 22% from 178 CR in 9 month FY 23 margin was at 24.8% as compared to as compared to 23.9% in 9 month fi23 during 9 month f24 the company
Recorded highest ever export revenue of 51 crores up by 75% by and comprising 57% of the total income the company has a customer base spending over more than 100 countries and key geographies include us Europe Saudi Arabia Brazil Korea UA Australia and Bangladesh order backlog is on 31st December 23 is the
Tune of thousand more than th000 CR 1,43 crores exports comprising 47% of the total order backload the total date as on fi23 is nil providing adequate room to raise dat in future total netw worth as on fi2 is 549 crores the company has comfortable net cash position of 235 crores as on
December 23 end in June 2023 crysal rating has upgraded our bank loan ratings from crysal a plus positive to crysal a minus stable and shortterm baying facilties there C A1 Plus that concludes my update on the financial highlights of the company I shall now request the moderator to open the floor
For question and answer session thank you thank you we will now begin the question and answer session anyone who wishes to ask a question may press star and one on their touchdown telephone if you wish to remove yourself from the question Q you may press star and two participants are requested to please
Use handsets while asking a question ladies and gentlemen we will wait for a moment while the question Q assembles the first question is from the line of Uncle from HDFC life please go ahead yeah thanks uh good evening sir thanks for your time as always uh just a few
Questions one was uh you know this very strong order inflow growth that we see during the quarter I think almost the 80% growth uh if you could just help us you know is there a large LG order also in this or you know where are we uh getting these orders for industrial
Gases which segments you know which markets uh if you help us I think you mentioned about 80% what we were talking about is the last quarter we have received in substantial order in all the sectors we have received the orders from the industrial gas sector lent sector as well as C scientific
Sector the uh if you see the uh uh situation one quarter before we had a pending order of almost about 1,35 and the sale which has happened in the quarter is almost the same level we have received the uh so uh the the orders that we have have come from major projects which are coming out of the uh industrial gas as well as the projects that we have now from the P scientific
Things okay what I trying to understand is it more of like base orders or is there any large oneof orders also in this is what was which we keep on getting can the some of the projects could come on some other project could come up some some
Other division but this is kind of a Bas one which is happening all all the time okay hi not sure if everybody can hear me this is J speaking can everybody hear me yeah yeah yes sir okay thank you yeah now just wanted to add that um our
Last photo was you know it was a great quter I think approximately 295 crores of fresh orders which is you know in line with our expectation and our our turnover out of which about 1990 crores was I think industrial gas I mean Mr can correct the numbers and
About2 cres in I and 75 cres in lmg and balance in C cenic and others making it to 295 okay okay got that and and then clearly you would expect this momentum to continue right I’m just trying to understand you know how are the End Market uh is it
More Expos is it more domestic uh you know it is more of export than the geography it will just help us understand and give us a more more sense you know on key end markets which are driving this kind of growth I think the growth is being driven equally by all the three
Sectors we do see kind of a stronger demand coming up on the bioscientific uh area right now mainly because of the some of the major projects which are now coming up on the scientific research area uh we do see that there is a uh you know consistent
Demand which is coming up for L as you must have heard about the the collaboration of the the agreement that we have signed with the adani that is also opening up new doors and they are having aggressive plans to go ahead and further for distribution of natural gas are constantly dealing with several
Institutions and the customers where the projects are on the Anvil so I I would guess that the Trend that we have as far as the past is concerned we expect even going forward okay and and if you could uh just remind us what would be your 24 uh
Guidance on Topline margins uh you send me if you could that I let me take that s uh you know of course we don’t give guidance uh for the future but as we said during the IPO time that we expect our past trajectory to continue uh in in the next few years
And uh as you can see from our current results I think we see that Trend continue sure okay all right great thank you so much thank you thank you the next question is from the line of prti pandari from art Ventures please go ahead hi sir good evening am I
Audible yes uh can you tell me what was your kex uh for the 9 months fi 24 and what you are willing to uh do as a kex for the coming up quarter and also the kex for the upcoming Financial year that is financial year 25 actually for 9 months we already
Incurred about 90 cres 90 95 cres and in the next quarter we will incur around 25 crores more and this is mainly because of the this the s project which we already uh shown in our ipu also now the the production already started for this sing and uh from next year
Onwards yeah around 50 crores around 30 40 4 40 to 50 CR will be there and around 15 to 20 crores will be for maintenance capex every year okay and can you so uh can you throw some color on the margins that you are willing to maintain for the coming
Financial year will will they be in the same lines or we can see any Improvement and if there is going to be any improvement from which business vertical you are seeing the same normally we will main our margins in a similar way however few basic Point here and there in the different
Divisions will depend upon the type of the order and the specialized equipments we have to supply but normally it will be the almost similar all right thank you thank you so much thank you the next question is from the line of prer Jen from Shri Kalan Holdings please go
Ahead on the Rob performance of your company I would just like to ask you uh like the collaboration of the company with uh total gas how much will it contribute to the revenue of the company and how long will it take to reflect in the balance sheet and the profit and
Loss of the company thank you yeah total it’s a preferred partnership we have signed the with them and they have very major plans for L uh as a vertical for them and in coming two to three years they’ll be expanding heavily especially on the fueling station Aang station satellite station and maybe the
Convergence of their Mining and uh cement tracks to LNG as a fuel so those the numbers are not uh clear to us as on today but they expect a substantial addition into the LG business and this is a long-term contract it’s a longterm cont at least like five years contract with them and
If requir it can be extended okay sir thank you if I just add you see while when um adani is building out adani total gas is building out this LG infrastructure it it requires a lot of um uh uh you know for us to collaborate with each other on an engineering basis
As well design engineering planning so uh you know we’re going to work with them uh you know to to help them design the equipment that they need to uh fulfill their needs so numbers is one part it’s this is not just about a commodity Supply there about system Supply so
That’s the difference okay thank you sir thank you ladies and gentlemen to ask a question you may please press star and one we have the next question from the line of nikil abanka from ICI Securities please go ahead M the line for you has been unmuted you may proceed with your
Question hello yeah so thanks sir thanks for the opportunity we were also participating in TSU tenders for seeing this St so can you throw some light on that as to how many tenders we have participated are we 11 in some of the tenders and uh how do you see the
Prospects of them going forward so we have been participating in the several tenders so far and uh just a uh like uh for lcg we have been with Gujarat gas T gas IND irm in gas hpcl bpcl so almost all these places we have received the orders and uh many projects
Like Gil and other things they are in the buing stage and we hope that with whatever the track record we are having we certainly get orders from these uh uh psus even we have supplied lot of critical equipments to iocl for the 26 uh LNG fing stations
Right and uh when you participate in this PSU tenders uh how is the competitive intensity can I just name up few uh some of the competitors who are always present in this building so we have like the major competitors is the chart VB in Chennai and there are some local other
Manufacturers uh who also did uh but whatever we have seen in the past uh our uh rates are are very competitive and our product has a very good acceptability in the market and with the very critical specifications they are putting in the RSQ we get the leading hand over on
All okay and so are we also willing to participate in LNG fueling station yes yes we are participating in the LNG fueling station in a big way and we already commission HPC and bpc projects and so many other projects are in hand now we have got um few stations from
Total so going forward can uh is it fair to assume that our share of domestic sales will be higher as compared to exports it is almost like 50 50% some maybe sometimes 48 52 like that but it is normally last few quarters it is 5050 understood and just a last question sir
Uh our aook is almost 1X of our f23 Revenue almost on uh so what exactly is the execution cycle of this order book and uh normally we have two major products one is standard products and another is custom bu products or the cycle time for manufacturing of standard product is
Roughly 3 to four months whereas the big project it ranges from 8 months to 12 months this is the time period where we normally finish such proess So within one year we execute the entire a one yeah from the scratch to completion understood and on this agreement with adani total uh you
Mentioned on the call that we are at the stage of Designing and basically doing all the ground designing work as of now so when should we start uh the actual order booking from from the settlement already we have started order booking uh the three earlier stations
What they were having so we have helped them in starting stations because they were having some issues with the station which was delivered by some other companies and we recently uh last week only we received five fueling stations from them five fueling stations okay sir that’s all com thank
You thank you the next question is from the line of Amit kadam from Canada Roo mutual fund please go ahead yeah hi sir s just wanted some clarity sorry to inter but you not audible sir yes is it now okay yeah so sir hi good evening sir just wanted some clarity on
The numbers how it is like from a similarity or fluctuation point of like just one observation was uh like in the top line revenue part the domestic revenues is pretty much flat y why whereas the large part of the growth was contributed by the export when 99 CR
Exporters mve to 145 C just wanted to understand what what are the things happens during that particular orders or this which leads to like a a domestic even though there is what your commentary says that there is a Traction in the domestic Market also but then byy
Why is it flat and what is leading to this uh significant jump in that export of like a more than 50% out so that’s the first question from my so basically on industrial gas business is a very standard business so the the growth looks little flatter uh but definitely
We are not losing any orders and we are very uh confident that we will get orders in future as well and on the export front uh we have major like L and C scientific orders and these are from the various European companies and very research institutes from Europe and that
Is why we are saying that our export will be almost 50% what we have achieved so far and we’ll continue in the same fashion but in that case just uh just adjusting for that particular raw material inflation which would have impacted our Top Line movement but like
As you are saying that we are getting a good Traction in the uh LNG fuel station installation this m omcs are getting little got little aggressive in setting that then what has like just wanted to understand more with more clarity that what would have gone out and what would
Have incrementally come in in this particular Revenue because as you said let me take this you know you have to view our Revenue not on a quarterly basis between domestic and Export because every quarter in some quarters exports are more domestic are less and B
Vera it has to be seen on an annual basis annual basis I’m just annual basis our guideline our split between domestic and Export right now is looking like half half on an annual basis just if you does that answer your question or it doesn’t it doesn’t sir because last year quarter three your
Domestic revenue is 145 CR B no no I’m saying you can’t compare year on year quarter on quarter cannot be compared okay you have to compare annual annual means 12 months annual does not mean 3 months on three months that cannot be compared in uh an industry like us where
Some months you will have domestic sale more some months you will have export sale more you have to see the 12 month cumulative number because the 50% of our revenues non-standard tanks Project based right it depends on Revenue recognition methodologies because of inds they many factors involved so you
Cannot compare uh Q3 versus Q3 f524 versus f23 and look into the export domestic split in that fine point taken sir the guidance is on an annual 12 Monon cumulative basis half okay uh just to extend this thing uh then if we want to take a little more
Uh like idea on how we are going ahead or moving for that annual number what would be the the correct way of uh understanding our grow trajectory because see annual could be a little longer time to get the clear sense how we fair by the year end
But like if you want to track in a better way in some peace me level then what would be the correct way of seeing that we are on the correct trajectory know only EPC in EPC I mean when you’re doing businesses like ours where 50% of our Revenue comes from projects which
Take 8 to 12 months um and 50% of our Revenue comes from uh standard times is very difficult to track peace me when the delivery of our product is only takes more than a quarter and then what would be the strongest quarter for us sir then at least that there there is no
There is no strongest quarter we we are not a seasonal business okay so deliveries can happen all through the uh year based on how the orders are okay absolutely deliveries do happen I mean for example this past quarter we did 295 crores of sales and
Our 9 month Revenue was also uh what is the 9 month Revenue guys 75 so it’s it’s Pro Data as you can see almost got it sir and just final uh question is uh just wanted to get some update on the LNG fuel tanks as such which like which
Was your planning for the commercial vehicles heavy commercial vehicle where we are in terms of like how the how the oems are looking forward we had got some initial Traction in terms of qualification what where we stand right now yes so you know I think this is a a really futuristic segment
And uh we are really um uh it’s fortunate that we were the first movers in this in India where we have invested in the line ahead of schedule we have designed world class products and we have got approval of our products from all the oems as well we are definitely
Seeing a lot of traction on it um the uh in order for the oems to buy the tanks they also need the fuel stations in place and those fuel stations are coming up as well so we you know our deliveries are continuing and uh we are certainly
Seeing over the next 12 to 24 months a much larger of take in this line i’ like to add that besides o there lot of convergence also happening old trucks and buses may be converted from diesel to L as a fuel along with the engine so that much is also happening in
Many places now so that will also add a bu to our business very enough sir so there is some further question I’ll join back in the I’ll come come back later thank you thank you participants you may press star and one to ask a question we have the next question from
The line of PES cheda from Lucky investment managers please go ahead I didn’t understand what exactly we will do in the uh in the truck site basically we will give them the tanks or we have a whole kit around it we will give the fuel tanks and the K suppliers are again
We have associated with them so together it will be fitted into the truck and uh basically our supply will be mainly the tank the fuel tank I want to clarify there are two different parts for the fresh OEM we are OEM suppliers of the tank itself to I’m just for the sake of
An example let’s call it let’s call it t uh and and if they’re making a truck it will be a brand new gas engine based truck where we will be supplying the tank but in the case of a conversion in the case of a conversion it requires a
Kit supplier as well so just two different verticals speci okay okay as said that when we say the LG tank it tank comes along with its conversion to the regasification so directly the gas is regasified and deled to the engine so the entire system which is consisting of
The storage tank as well as the gasification is package together and that is the package which we will give whether it is for a new build or for conversion okay and is it fair to assume that today the LG business which is 20% of the business is largely coming
Outside India the India part of the business and the ordering will now start it is both because you see in India also there is the city gas distribution system which has happened the part of the trucks getting converted or heavy duty trucks getting converted to LNG is
The one which is happening now but there is also the industrial requirement where people who are not on the pipeline they can they get the fuel in the LNG form that means in the liquid form and then they have their own regasification on on site also there are City Gas
Distribution companies which are not onto the gas pipeline they have the lcng stations which means a liquid CNG station which are also supplied by us as a cogenic storage and pumping systems so this part of the business uh continues we expect the growth to happen when the trucks becomes also the long distance
Truck get converted and the additional business would come up with the LG fuel stations as well as LG fuel tanks coming up on that our export Market continues for the the tanks and the regasification systems that we supply to the global market Mar is a major Market that we
Keep supplying and that is for the conversion of the marine fuel from the diesel or any other heavy polluting fuel to the LG and we Supply the LNG tanks as well as the regasification system which comes along with that okay and what’s your global market share in
LNG and India market CH actually this uh business is so Niche and it’s it’s very complex so there’s no published data which is available but what we can say is we are among the first couple of companies which are there in this operations so there are only few
Companies with whom we compete globally when we talk about the such regasification systems or the Marine applications as such okay my last question is this adami partnership what does it incompact what kind of equipment supply does it need to yeah the total uh package system like fueling station airc station satellite
Stations uh fuel tanks for the trucks and basically uh to support their uh initiatives in the L sector training them and providing them the technical inputs for their new Pro upcoming projects this is the entire gamut where we’ll be working with them and when should the ordering to you start
Ordering is already started we are recently few station fueling stations from them now okay okay thank you thank you the next question is from the line of vinayak from H please go ahead yeah good evening sir can you shed some light on beverage business yeah uh we recently started uh
A plant at s in 31 acres of land which is there so we have put our first uh three shops where we have started manufacturing beverage kicks and uh the capacity of this plant is uh around 1 million but we will be going step by step so we have already started
Manufacturing the trial production is on and few commercial production is also started we have supplied to Belgium US and Germany and the order flow has started coming in now how is it picking up Sir recently we had some collaboration with Italian manufacturer right sir yeah that was the initial
Collaboration uh for the technology transfer and we are working with them continuously on the the product development as well as uh the manufacturing uh Excellence uh initiatives so that is we did in 20 uh on August 23 and it is continuing so how are the margins in that business sir
Yeah I think we have just started the whole project right now so it is the initial supplies which are going on now we are in the process of uh making sure that the all the line set up and the line balancing is happening so this is
The early stages I think we we can practically see the operations during next financial year 425 could give us certain clear picture because this is this year is just the investment which has happened and we are training our people and we just getting the product through in terms of the trial
Productions I would say my second question is there is a lot of overlap between Inox a products and uh Ino CVA business right sir is there any non-competitive agreement between these two companies I think there is little misunderstanding uh let me clarify that you know Air Products is in
The business of setting up the air separation plants and selling the industrial gases which is liquid oxygen liquid nitrogen they would need the capital expenditure in the form of storage tanks Transportation tanks customer station tanks and that is the product that we manufacture the enox CVA
Or the enox India limited is the one which is a capital goods manufacturing company and which supplies the products to Inox air products as well as the competitors of Inox Air Products so we are able to sell there is no compet competition between the two we have a relationship of buyer and a
Supplier and my third question is is there any direct benefit from the national green hydrogen Mission I mean I couldn’t see any collaborations between green hydrogen producers as of now including products yes hydrogen production globally is happening at an early stage where the countries are all getting committed to conversion of the
Fuel to ultimately to hydrogen because that is the you know least polluting of the zero polluting fuel now our business is mainly associated with the distribution of hydrogen and as the hydrogen generation starts we are not in the generation of hydrogen but we we are in the storage and distribution of
Hydrogen so our business is happening to the all those green hydrogen projects which are coming up globally and where they need to store large quantities of hydrogen and as we had mentioned during the IPO stage also the world’s largest uh green hydrogen products or liquefaction plant has come up in Korea
And we have been the supplier of the storage equipment at that particular location and similarly the we do see there are more opportunities where different projects coming up in the world we are in a position to buid for them and we are able to showcase our references to exploit the growing Market
Which will come up but as everyone knows that this is a longterm play the projects will come one by one uh and we we hope to have the continuity of this yes sir one more are we looking for any iter kind of Mega project I there are similar projects which are
Coming up I think the uh it is one extremely large project but I’m sure when the this project become successful or when it comes to the various countries will start looking into their own projects even India at some stage will think about making some demo projects or
Demo uh fuel this uh the fusion projects but we simultaneously we also have other projects which are called big science projects for example right now in Germany there is a fair project which is coming up F and we have already started uh bidding as well as receiving certain
Orders for the projects that is a fair project and we expect similar projects to happen all over the world and in different locations we will buid for such kind of a mega science projects yes sir in in terms of government project if we can a bit compromise on
Our margins can we get more projects from the government psus kind of it’s uh if you’re referring to the scientific projects non Scientifics or general General we have only two areas which we really work with the uh with the government with the and I it’s in the L field and the scientific field
And the third one is of course Hospital requirements the government business as you would know will always go for a tendering and the tendering happens between the selected products so it is that’s what I was asking whether are we going to compromise margins in order to get more projects from the
Governments like this is there any aggressive plan towards it actually Our intention for bidding at every government Tender Is to win the the tender and the tender price is one of the criteria and we have to see that we meet all the specifications and uh we focus our manufacturing cost to be the
Lowest uh possible thing so while protecting our margin we would be in a position to uh win these kind of businesses so uh it’s it’s it’s our effort all the time and uh we do win a high percentage of the government orders by our strategy aggressive strategy thank you thank you thank
You the next question is from the line of sanjie danani from skd Consulting please go ahead uh namaskar sir and congratulations on the very fine performance that you have shown sir uh actually I just wanted to thoroughly understand things uh to my level so I
Mean are we hello am I am I audible sir thank you are we simply mechanical Erectors of Tanks or some technologies are also involved in making this so as to uh you know making it almost non-competitive uh from other small or big Workshops can can you kindly uh answer
Me this so I think what we do is we uh manufacture these tages for storage of liquified gas which are extremely low temperature that’s why we call them as a cryogenic tanks typically all these tanks will store uh gases like oxygen nitrogen at a temperature well below minus 150° Centigrade at such low
Temperature conventional tankes do not work because the carbon steel will not work some special materials are required so normally these are all double walled vessels where the vessel of storage is stainless Ste and then we have have the outer jacket of carbon steel or stainless steel and then we have
Something called super insulation or extremely different kinds of insulation Technologies under vacuum which is like a so this is a technology by itself and it is not a commodity product where anybody can produce that as you could see that globally we are among the top 10 companies in the world who are
Producing such a kind of the specialized product and therefore the competition is very difficult to come in because this is highly engineered highly you know it requires a lot of certification to produce so there are challenges both in designing the product manufacturing the product and making it very reliable on a
Large scale so that keeps the competition away thank you very much sir you really explained me to my satisfaction and my understanding thank you very much for it I mean there are you know you were talking about automobile tanks that is suppose in a Tata truck we have to fit in a LNG
Storage tank so you know I have heard of Everest Kanto and confidence petrol making lot of cylinder type or tanks meant for fitted into automobiles so are they our nearest competitor in that segment or no kindly reply and and other would produce the high press cylinders
In which you can store natural gas and make it CG and CNG is the one which is supplied this is the these are the CNG storage tanks now these are storing the natural gas in the gaseous form at room temperature as against that what we do
Is that we provide those tanks which can be fitted on to the Tata orand or any other truck which is in the liquid form at extremely low temperature and because liquid it is much more denser than the gas that you are putting it Enders so what we deliver is a
Completely different product and is suitable particularly for large quantity of fuel to be stored in a truck so that has the longer so these fuel tanks are up around 450 L and it goes in one stet around 700 km in one field so that’s advantage of these fuel tanks right sir
I’m really thankful I mean now I establish that you are one of the prominent leich player in and you have established yourself to be a a responsible and reliable supplier of these items sir one more question is coming to my mind is about scientific product when you say we make scientific
Product means what uh we do make scientific products because such low temperature science requirements come up for very research application for let’s say for heing distribution which is minus 29° cenr so these kind of things which are so so so either for making experiments or or or such critical products under such
Temperature that people would require these kind of products scientific we can say we are supplied so many equipments during from the second Launchpad so whatever launches you are see from okay okay okay okay sir my last question is regarding our raw materials so all our raw materials are
Indigenously available or we have to procure or are we uh improvising on basic metals that we receive and make it usable for our end normally our vessels require the inner vessel is of stainless Ste tic stainless Ste and outer Vel of carbon both these materials are available in India but depending on the
Customer requirements if somebody asks for a foreign material or we export the import the material from other countries but there are specific walls control walls and many other equipments which are not readily available in India that time we have to import those components okay so when M you are not supplying
Tanks you are supplying the other additives for as you said that as a kit for converting uh liquid into gas in operation such such other parts are being procured by us or do we manufacture certain more parts other than tanks for conversion of Kats we don’t do anything there are converion parties who
Are involved into it but we support them uh from our tank side and the operation side so that we make a success for the owners of the tanks so we will we will never take a order of the rejoin the queue for question thank you thank you
Sir thank you very much thank you ladies and gentlemen we request you to please restrict your questions to one question per participant the next question is from the line of D kasala an investor please go ahead yeah hi so uh as you get 50% of your revenues from export market and 50%
Of domestic so globally lende PLC is a market leader along with you know few other players so how do you uh see yourself you know in terms of facing the competitive challenges from the global leaders and in the domestic Market do you see any risk of you know let’s say
Lind PLC entering into domestic Market through it Lind India company and how do you plan to face that uh competition yeah uh Linda is one of our customer as well we supply for last more than 10 15 years uh series of Tanks to their requirement even for their
Projects what you rightly said they recently started uh some tank manufacturing and uh the project is just started I think they will take another three to five years to really produce good number of tanks in their shops may I just supplement what de AAR has mentioned you see as I
Mentioned earlier regarding Inox air product Lind is primarily a Gas Distribution Company and their major focus and the businesses that they are doing globally is to make air separation plants that is what you see as a major Revenue they always require the cryogenic storage and distribution and
Bulk of it is procured from outside and we are the supplier to them on a global basis to different geographies they do have their own manufacturing of tank in Europe but it’s a high cost their own manufacturing and then utilization they do it but bulk of their requirement for
Lind is actually procured from outside and we are their P primary vendor or one of the critical vendors for that so as we see that even when the their India operations grow or any other Global operations go they are not our competitors but they are more complimentary to to we are more
Compliment to them and even if they take up any example let us say there is a large project in India we are the ones who supply all the storage tanks and regasification systems to them and in terms of commodity price inflation uh how do you position yourself do you have
Sufficient bargaining power to pass on the commodity price inflation or you might be required to take hit on margins if the commodity price inflation goes out of control normally it is a pass through we are in a position to pass the because there are only limited suppliers and all
Of them would have the same situation whenever this customer requirement comes in so it’s a pass through for us okay thank you ladies and gentlemen we will take that as the last question for today I would now like to hand the conference over to the management for closing comments over to you sir
Sir uh thank you everyone for your active participation and for your questions we hope we have able to uh we have been able to answer most of your queries in case we we have Miss addressing any of your queries kindly reach out to us or investor relation
Officer Mr Su laati as well as our partner Aran and they will connect uh with uh you offline thank you thank you very much for the participation thank you on behalf of ICICI Securities that concludes this conference thank you for joining us you may now disconnect your lines thank you
So much byebye thank you okay M thank you