How is FY25 looking? The way you have expanded capacities, the way things are panning out, numbers, your margins in FY24 appear to have bottomed out and are going higher. Can it go back to 11-12% levels which we have seen in the past as well?
Ramesh Chandra Mansukhani: I will brief about the nature of the business because there was a little bit of pressure in the last quarter because most of the orders were domestic orders and for water works. So, water is fetching a little bit lower EBITDA, 8%, oil and gas, 11% to 12%. Our guidance for FY25 would be around Rs 4,000 crore which will be 25-30% growth. This year we closed Rs 3,200 crore while last year it was Rs 2,200 crore. The growth will be roughly Rs 4,000 crore and we are estimating EBITDA between Rs 400 and 450 crore. This is our guideline and because of some value-added products we already added in FY24, more impact on the positive side will be seen in FY25.
Your margin trends are closer to 9.5%. You are saying Rs 4,000 crore top line for FY25 with Rs 400-450 crore margin, that is 10-11%. In FY26, is there scope for Rs 6,000 crore top line and 12-13% margins?
Ramesh Chandra Mansukhani: There is a great possibility because whatever our capex programme is going on which will give the yield in FY25, we are expecting 12% to 13% EBITDA and Rs 6,000 crore is our target there.
So there will be a big jump in profitability in a particular period. But this year also, we are seeing the positive side movement already started in EBITDA. In the current year, there will be more vibrancy in Q2, Q3 and Q4.
How is your expansion in Saudi Arabia going on? Can you share updates?
Ramesh Chandra Mansukhani: Because of the expansion programme, because of the same field we are going, because of local content value, the government programme Vision 2030 in Saudi, we are putting up the plant over there. The work is already in full swing, and in the next two-three months, we are investing around Rs 450 to Rs 500 crore there.
Recently we saw you got a nod for manufacturing pipes which can transport hydrogen. Now, we see that a lot of hydrogen capacities are being added by players like Adani, Reliance and some others as well. Which year would the real requirement in orders actually come in and before that how much capacity will be created? In four-five years, how can this side of the business add to your numbers?
Ramesh Chandra Mansukhani: Although Adani, Reliance and other government companies are coming in the field of hydrogen, in next two-three years, we will see a great move because the change of focus from one product to other products takes time and then come government approvals. Then there will be utilisation.But because we have got accreditation, the international market will be much faster for us. Right now, of our total revenues, 80% comes from export. So, our focus on export is much more where things are coming very fast and more volume worldwide. India also will be a very promising market in coming days.How are the margins in this hydrogen pipes? Are there better margins products than the other ones?
Ramesh Chandra Mansukhani: There is a better margin, definitely, but because very few companies in the world are doing it right now, the market EBITDA will be much higher, with much more value added products, etc.
In three years, how much can it add to your revenues and profits?
Ramesh Chandra Mansukhani: This time is very difficult, but I have given guidance on FY25 as well as FY26 also and this is a much more futuristic business. Tonnage-wise, I can say we have one million tonne capacity and we will be utilising more capacity in coming days, apart from current business we are going to cover the new energy business also in India as well as abroad since we have all the accreditations.
