Morning. Thank you.

Let me start with giving the safe harbor statement. The presentation and the press release which we uploaded on our website and exchanges yesterday and discussions during the call today may have some forward-looking statements.

These statements consider the environment we see as of today and obviously carry a risk in terms of uncertainty because of which the actual results could be different, and we do not undertake to update those statements periodically. Let me start with giving you a brief overview of this quarter and the financial year.

The most reassuring thing for us is that the performance of this FY was in line with the roadmap and the strategy that we had laid down during the beginning at the beginning of the FY, and we had been watching it and updating it at every quarter. We had aimed for a double-digit growth and a growth in profit.

We, while keeping our margins secure, we broke the first the gap of about 2 years in our export income about ₹300 crores after a gap of nearly 2 years, a very important milestone which we had to achieve. We continued the steady order inflow rate of one order a day and one export order a quarter.

Despite the high execution in quarter 4 of about 750-plus crores, we ended with the highest ever order book on 31st March of ₹9,416 crores. All of these are were in line with the roadmap which we had set and have set us a platform to leverage on this and as we have been giving the guidance for a substantial growth further substantial disruptive growth in the coming FY.

What is also reassuring to us is that the the years, last 2, 3 years of business re-engineering followed by year of consolidation, we were aiming for FY26 to be year of growth, and that has moved in the direction which we had planned strategically. These are the broad overview on a bigger picture on the overall performance, and we'll come to specific numbers as each one of you ask specific questions.

Thank you.

Good morning, sir.

Morning, Parimal. Go ahead.

Sir. Can you hear me properly?

Yes. Morning, Parimal.

Go ahead. I can hear you.

Yeah.

Sir, I just wanted to know, you've been mentioning the disruptive growth in your press releases since last two quarters.

Yes.

Can you highlight the reason for this optimism in terms of considering the geopolitical headwinds right now, and also if you can give a highlight across your businesses how do you see moving forward, starting with consultancy, sir? That will be really helpful for us.

Yeah. Why we are saying this is that the order book profile that you see, and if you see the trend of growth of order book in the last 7, 8 trailing quarters, it has been showing a upward swing, and there's been a substantial increase, especially in the last 18 months or so.

There's been an incremental jump in a big way. The order book currently of ₹9,400 crores, a substantial portion, more than 50% of it, is very young, which is about, as I said, 12 to 18 months old.

These will be the orders which will start generating revenue in this year, in this FY. That's why, in fact, in the last quarter of FY26 also, you saw an increased revenue of 750-odd crores.

That's why the young order book, normally an infrastructure projects have a time span of 3 to 4 years, and this is the second and third year where it starts generating more revenue. That gives us the confidence across all our streams of revenue that we will start generating revenue, whether it is consultancy, where we get a percentage fee of the infrastructure cost; whether it's the turnkey, where we get the entire revenue in our top line; or whether it is the export order book, which has been an all-time high of ₹1,700 crores-plus, which despite the ₹300 crores execution in this last FY, will generate more revenue because the Bangladesh delivery will also start in this FY.

Sir. Sir, we expect to maintain these margins going ahead, which we have maintained for this entire year?

No. As these competitive orders, which I said will start generating revenue, if you again compare every year ending the mix of the order book, in fact now it's ended this financial year on 31st March is 63% on competitive.

That's the breakup of the order book. If you count the fresh order inflow, it is about 70%-plus.

The margins all across our streams, the margins on the new orders are much lesser. As these new orders generate more revenue in the mix of the total revenue, the margins will definitely go down.

Yes, but as we have been giving a guidance that the red line of PAT margins 15% and EBITDA margins of 20%, that in no condition will we allow that to be breached by suitably monitoring the high-margin orders.

Sir. I'll come back later for the questions.

Thank you. Thank you.

Sir, you are able to hear me?

Yes. Go ahead, Mr.

Lakshmi.

Sir, could you throw some light on turnkey construction projects, sir? I see the PAT margins are very low for it.

I just want to understand the nature of this business because I'm [laughter] new for covering the company.

Sure. Let me be clear.

We are not a construction company. We are a project management consultancy company.

While the order size in our turnkey is large, and that's why it is a large portion of the order book, our scope of work remains the same. To be able to explain to you through an example, let's say our fee is 5%.

If in a ₹100 crore project, our fee is ₹5 crores. In a consultancy mode, the client gives us an order of ₹5 crores.

In a turnkey mode, he gives us an order of ₹105 crores, our scope of work remaining same. Our role remains the same.

Certain clients like educational institutions, etc., primarily building projects, like to deal with a single window, they give us in the turnkey mode. That's why the denominator being large in turnkey projects, while the scope of work and the revenue remaining same, the margins are much lesser in turnkey.

To be able to reiterate the key point, our role is of that of a consultant, whether the mode of order is in a consultancy mode or a turnkey mode.

Understood, sir. Thanks for clarifying.

It's just a difference in the method of accounting.

I got it, sir. Yeah.

Thank you.

Hi, thank you for the opportunity. I have a couple of questions.

Firstly, could you help us with the impact that the competitive projects will have on the working capital position of the company? Would it in any way dilute the working capital position, or it would not have any impact?

Ma'am, our working capital requirement is barely minimal. That's the way we structure all our orders of consultancy.

There's not really going to be significant impact in any way, because as a business model, our working capital requirement is hardly any.

Got it. Apart from that, do you see any raw-material-related headwinds impacting the margins going ahead apart from the competitive portion already having a minor impact?

Again, the contracts that we give for execution of the see, we have about 700-plus live consultancy orders that we are executing. The contracts that we give for execution, almost most of them have a price variation clause for the execution agency.

Our fee as a consultant is a percentage of the infrastructure cost. In terms of the impact on fuel or raw material costs, etc., we don't see any major risk coming to our margins or our revenue.

There is no execution risk [inaudible]? Could you come back in the queue, please?

Sorry?

Would you expect any execution risk as well?

Not really. The infrastructure construction projects across our various we have 13 different verticals.

We don't foresee any major risk in any of the sectors in terms of execution. We just have to keep a watch on some of the costs like travel costs, etc., because being a consultant and as I said, 700-plus live projects, travel costs is an important cost both for our domestic and we have a lot of international projects also.

That's the only element which we have to keep a close watch on to keep a close watch on the margins.

All right. Thank you so much.

That clarifies.

Thank you. Thanks.

Good morning, sir. My question is this other expense have gone up in this quarter and the year.

Why is that? What is the reason for that?

Which specific figure are you referring to?

Other expenses figure. Other expenses, when you see the numbers.

Are you? Basically, yes.

There are two major contributions to this other expenses. One is we have moved these 10 locomotives of Mozambique, right?

Especially if you see six in the last quarter. The logistics for this movement is also an important took.

Similarly, for the warranty provisions which we make. These are two important elements which are related execution of our export orders.

Since these 10 locomotives, the entire order was executed in this FY, this has seen a comparison YoY, this has seen a

Hello?

Did you get that?

No, you were breaking, sir. Comparison YoY, I couldn't hear after that.

Yes. I said, because this entire 10 locomotives Mozambique export order was executed in this year, that's why these two elements which are related to an export order execution see an increase YoY.

Okay. Will be the same feature cause going forward also this kinds of expense will be higher, or they'll be plateauing down this year?

Because the execution of export orders will be much higher this year, there will be a slight increase, but since Bangladesh the major quantum of export contribution this year will be primarily from Bangladesh orders, which will have lesser logistics cost because it has to move by rail. To that extent, it may get slightly neutralized.

Increase will not be substantial, even though there will be an increase in the export revenue.

Sir, since

Yeah. I'll do that.

Hi. Congrats, sir, on good numbers on revenue terms.

Just few questions from my side. On consultancy, sir, can you give the breakup between quality assurance and what is the consultancy because it was flat in this quarter?

That's the first question.

Yeah. Morning, Harshit.

Thank you. The overall consultancy YoY has seen a growth of 6%.

This is a year of real redemption for us in our quality assurance vertical. We have reached when this hit of the competitive quality assurance for the railway sector of business started hitting us in the year '23, '24.

We reinvented the entire business. There has been a 16% increase in our QA business within this overall consultancy, and we touched an all-time again revival and came back, crossed the figure of the QA revenue, quality assurance revenue, which we were there in '23, '24.

All in all, the contribution of QA has come back to the same levels which it was at the beginning of '23, '24.

That would be what, 70-odd crores, sir?

No. It is much, much more.

It has different elements which get interspersed in the various consultancy verticals. It's very difficult to give a separate head-wise breakup of the entire because consultancy revenue of total ₹1,185 crores comes from 13 different verticals, but the accountal of our various orders from our quality assurance vertical has shown that we have come back to the levels which we were there at least in terms of revenue contribution even with the tighter margins where the hit started about 2 years back.

Okay. You have back to FY24 numbers.

Great. That's

Yes, FY24 numbers. In fact, with the key variation that because of diversification of our QA business, where it used to be about 55% of the IR element in our QA revenue, now it is about reverse.

The non-IR element is roughly about 60%-plus.

Okay. Okay.

I have few more questions. I'll join back in the queue, sir.

Thank you.

Thank you.

Sir. Thanks for the opportunity.

Sir, in terms of our export, can you give some color how exactly the execution of pending order book will be? See, for example, we have done 10 the Mozambique order we have already supplied.

What is pending, and then for the Bangladesh also if you can just give some color around that, sir?

Yes, this execution of the Mozambique order with the 1,750 export order balance, one of the key elements of this is the 200 coaches of Bangladesh, and they are fully on track, which has just been indicating. The first rake of 20 coaches, we are definitely trying to send.

The prototypes have been approved. The final production has started.

They are in the finishing stage, the first rake should definitely go in a 2 months' time. With that, once the first rake goes, we should be able to maximize as many rakes with gaps of at least 3, 4 rakes minimum in this FY, try to step it up after the production rates will increase after the delivery of the first rake.

This is the main contributor which is going to be there for the export revenue, export of rolling stock revenue in this FY. Besides, as I had indicated in the last quarter, we have a very important developmental exercise where we are converting the in-service diesel locomotives, the spare diesel locomotives of Indian Railways, and converting them to Cape gauge and proposing to export to African countries.

The first two locomotives also, again the prototypes are ready, and we should be able to push them in the coming few months. Once the first two goes, the opportunity for sending more, because we have an order of about 30 30 locomotives for the in-service locomotives, and we should be able to definitely keep pushing them.

Okay. Just maybe one continuation of that.

The order that we have of almost 1,700-odd crores, what sort of execution that one can see out of that in FY27?

You see, we did about ₹300 crores in FY26, and we are aiming definitely much above the levels of 300. As I said, it will be premature to peg a real number, but what I can safely say is with the first rake, once the first rake moves out, because this is the first rake after approval of the prototype which happened recently this month itself, it will give a clearer picture.

Each rake consists of 20 coaches, there are about 200 coaches which have to be sent. In the next 2, 3 months, the exact number of rakes which we can send in this FY will become a better clarity.

Maybe at the end of Q1, I will be able to give a clearer number in terms of the growth vis-a-vis ₹300 crores, but this is for sure it will be much higher than ₹300 crores.

Okay. Okay.

Sure, sir. I'll come back in the queue, sir.

Sir. Now since most of the good amount of order will be getting executed in this 2 years, what should be the earning trajectory of the RITES if you can just give some color on that, sir?

See, Viraj, what we are pitching now for this FY as an ambitious target is to break the records of our revenue. All-time high revenue we will definitely try, and that's our aspiration for this year.

As you would appreciate, the related EBITDA in those years when this was achieved were very much higher compared to what we are now. Similarly, the blend will also be slightly different in this year, with turnkey starting to contribute more, which will be a lesser margin.

While we will aspire for definitely breaking the record for an all-time high revenue in this FY, the profits, while we are aiming to have a growth, but will not be able to break the all-time high records of profit. That may take a subsequent at least, minimum 2 to 3 years to break those records because the revenue will have to grow substantially much higher with these lower margins to break the profit records also.

That gives a bigger picture of the next 2, 3 years' time frame. Sir,

the all-time high profits was net profit of ₹633 crores. The all-time high net profit for the company in last 10 years would be ₹633 crores, which I can see from the table here.

Rahul Mithal (Chairman and Managing Director):

The all-time high profit for the consolidated profit all-time high has been ₹571 crores.

Okay. That will take time to be breaking because of competition.

Yes, and definitely the margins in the blend mix in the total revenue. While the revenue will definitely try, as I said, try and cross the all-time high, but the profits will not be able to cross the all-time high this FY.

Will the profit grow by some 10%, 20%, double-digit margins, or that will be also a bit difficult for company to maintain?

Profits will grow. To give a exact number is too premature, but profits will grow.

Okay. Okay.

Thank you, and all the best, sir.

Thank you. Thank you.

Yes. Can you hear me?

Hello?

Yes. Go ahead, Parimal.

Yes,

sir. In terms of your REMCL business, you've reached around ₹163 crores of revenue, and that is almost close to ₹90 crores.

How do you see this business since government try to reduce the diesel consumption, do you think this business will be getting more traction going ahead?

Yes. REMCL, as you correctly said, has grown by 16%, and the profits have grown by 19%.

It's about ₹163 crores the total revenue, and profit has been ₹90 crores, and it's given a substantial dividend to us of about ₹42 crores. You see, the electrification having nearly reached about 100% on the Indian Railway system, the growth in the consultancy revenue from this stream of power purchase will be limited to only the growth in the volumes of traffic on the IR network.

What REMCL is doing for further charting out a growth in the coming years is already started taking in this FY other consultancy orders in the renewable energy business from different clients and also started pitching for taking international orders. In the coming FY and the coming FYs, besides this steady growth from the Indian Railway stream of business, we see REMCL getting revenue from these two new streams of revenue, that is which they have already started getting orders and which will grow as a consultant expert with its experience of about 11, 12 years in the renewable energy business, as well as getting some international orders, which we are sure in this FY itself we will get our first international consultancy order for REMCL.

Sir. Sir, second question if I can ask.

Sir, do you see any

I request you to come back in the queue, Parimal.

Okay.

Thanks for the opportunity again, sir. On the macro side, I just wanted to understand.

There's been a decent rise in the railway budget in this year as well. Looking at the macro headwinds, there is been a talk that the capex is what has to come down if the government wants to ensure that the country's spending remains to be in the healthy situation.

There are other spending which are required. Do you think there would be some delay in spending on railway contracts or railway budget or infrastructure capex, or are you getting a sense from them that it's not going to get cancelled, but there could be some delays or you will see second half to be better than the first half, something that you can give a sense about, sir?

Harshit, our assessment of our order book and the opportunities we are getting, since we have order book across all various domains, and each one of them, as you said, has got a substantial contribution in the overall capex budget of the government, I don't see any major impact on our consultancy, whether it's fresh orders or for the progress of the construction so that our fee as a consultant, getting the requisite fee from various milestones. In fact, if you see the recent orders which we have been getting, and even in this quarter, in the last 1 and 1/2 months, we have been getting fresh orders across whether it is railways from various PSUs, private sidings, Indian Railways, from highways, ports, bridges, airports.

We've got a recent big order for airport consultancy, another one for shipbuilding cluster from Kandla. I don't see our strike rate of fresh orders as well as the execution going down.

If the execution is progressing at its normal pace, our related milestone consultancy fee continues to come at a regular rate.

Understood, sir. Very well explained, sir.

Thank you, sir.

Thank you.

Hello, sir. The previous colleague answered the question, you answered them.

Thank you, sir. Thank you.

Thank you.

Thanks for the question again, sir. Just on the turnkey projects, just wanted to check, sir.

Though the decline has come down, but we have still not reached the last year's number. When do you think we'll be able to reach last year's number?

If you can give us a status on the projects, where are we? Are they reaching the milestone phase now, or we are still sometime away?

Yes, Harshit. The turnkey revenue is lesser by about ₹200 crores, and the order book of ₹4,580 crores of turnkey, substantial portion of it is at the young stage.

It is in the times frame of 1 to 2 years window. That's the time where the contracts are in place, the execution has started, and in fact, these one or two, three quarters, they will start generating revenue in a substantial way.

Since the order book is young, nearly about two-third of it of the turnkey order book, and considering, as I said, a time span of 3 to 4 years for a turnkey project, the real time when it starts generating a revenue is from the second year onward. Many of our projects, the IITs and IIMs, etc., the building vertical, some of our rail infra with siding projects which we have taken on the turnkey mode, these will start generating revenue in this FY, and we foresee that we should definitely be able to come back our projections based on the execution of each of these big projects to at least the turnkey revenue levels of last year.

Understood, sir. Fair enough.

Wishing you all the best, sir. Thanks, sir.

Thank you. Thank you.

Yes. Thank you.

As I said at the outset, the foundation for a growth year building up on the growth of FY26 has already been created, as you can see from the numbers and the breakup of the order book. One of the strongest signal from the result was, you'll see not just the rise in revenue and profits, but the underlying the growth emerging from all the three elements of high margin, that is consultancy, leasing being an all-time high, and exports.

All of these three streams of revenue contributed to the growth both in top and bottom line. This FY, while these will continue to grow, and as I summarized in the turnkey segment, which will also contribute, the key focus of ours will be to continue to focus on a mix of higher-margin projects and the turnkey project so that while maintaining a growth on the top line, we secure our PAT and EBITDA margins as per the guidance that we've given.

We are sure that we will definitely grow in this FY, and our basic model of rewarding our shareholders with a high dividend payout ratio, that model is going to continue. Thank you.

Thank you very much.