Kilburn Engineering Ltd — Call Transcript 2025

May 27, 2025

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27[th] May, 2025

To To, The Corporate Relationship Department The Secretary BSE Limited The Calcutta Stock Exchange Ltd., P.J. Tower 7 , Lyons Range, Dalal Street, Fort Kolkata – 700 001 Mumbai - 400 001 Scrip Code: BSE 522101 Scrip Code: CSE 21022

Sub: Transcript of earnings conference call on the audited Financial Results for the fourth quarter and financial year ended 31st March, 2025

Pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we submit herewith transcript of the earnings conference call held on 22[nd] May, 2025 to discuss the audited financial results of the Company for the fourth quarter and financial year ended 31st March, 2025.

Yours faithfully,

For Kilburn Engineering Limited

Digitally signed by Arvind Bajoria Arvind Bajoria Date: 2025.05.27 17:26:10 +05'30'

Arvind Bajoria Company Secretary & Compliance Officer

Encl : A/a

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KILBURN ENGINEERING LIMITED

Q4 & FY25

POST EARNINGS CONFERENCE CALL

May 22, 2025 4.00 PM IST

Management Team

Mr. Ranjit Lala - Managing Director Mr. Amritanshu Khaitan - Director Mr. Sachin Vijayakar - Chief Financial Officer

Call Coordinator

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Strategy & Investor Relations Consulting

Kilburn Engineering Limited Q4 & FY25 Post Earnings Conference Call May 22, 2025

Presentation

Vinay Pandit: Ladies and gentlemen, I welcome you all to the Q4 and FY '25 PostEarnings Conference Call of Kilburn Engineering Limited. Today on the call from the management team, we have with us Mr. Ranjit Lala, Managing Director; Mr. Amritanshu Khaitan, Director; Mr. Sachin Vijayakar, Chief Financial Officer.

As a disclaimer, I would like to inform all of you that this call may contain forward -looking statements, which may involve risks and uncertainties. Also, a reminder that this call is being recorded. I would now request the management to detail us about the business and performance highlights for the period ended 31st March 2025, the growth plan and vision for the coming year, post which we will open the floor for Q&A.

Over to the management team.

Ranjit Lala:

Thank you, Vinay. Good afternoon, everybody. We welcome you all to the Q4 2025 and the year-end '25 earnings call, wherein we will apprise you of the latest update on the company and its subsidiaries. It was another successful year for Kilburn Engineering driven by sustained demand, strategic acquisition and capacity expansion at our Ambernath factory and M.E. Energy Pune. We completed the acquisition of Monga Strayfield on 27th Jan 2025. Also, the Ambernath factory is now fully operational. Furthermore, it's been a year since M.E. Energy was acquired. The Phase 1 expansion, which was completed in the middle of the year is also fully operational.

As mentioned earlier, the sustained demand has led to highest-ever order intake for Kilburn at ₹493 crores. Also, M.E. Energy achieved order of ₹83 crores. Monga Strayfield, our recent acquisition, has also had a good order intake. As a group, we have closed the year with an order backlog of ₹483 crores.

We will now give a brief of the financials already available in the public domain. Kilburn had a top line of ₹335 crores for the financial year and ₹102 crores for the quarter, both being the highest in respective time periods. We also achieved the highest-ever EBITDA margins. On a consolidated basis, we achieved a top line of ₹425 crores with EBITDA of ₹100 crores.

For the current financial year, we have an excellent inquiry pipeline of ₹3,000-plus crores at a consolidated level, and we hope to have a conversion rate of 20% to 25%. This would ensure sufficient backlog through the year

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Kilburn Engineering Limited Q4 & FY25 Post Earnings Conference Call May 22, 2025

to achieve 50% growth, which also includes full year revenue of Monga Strayfield. Going forward, we expect a CAGR of 25% to follow in the following years.

With this, I would like to hand it back to Vinay.

Question-and-Answer Session

Moderator: Thank you. All those who wish to ask a question may use the option of raise hand. In case you are unable to do that, please drop a message on chat and we will invite you to ask a question. We'll take the first question from Agastya. Agastya, you can go ahead.

• Agastya Dave: Thank you, Vinay bhai. Hello, I don't know whether I should congratulate or not because on the revenue side, it was slightly light, but the margins are honestly mind-boggling. So what exactly led to such high margin levels, when the revenue was slightly on the lighter side?

• Also the reason for the revenue to be on the lighter side, Vinay bhai and I had a discussion, and we reached the same conclusion that it has something to do with the expansions which are going on, so disruptions at your plant level. But what exactly was the reason for the lighter revenue and the heavyduty margins?

• Ranjit Lala: Yes. So on the revenue front, we still had a couple of projects, we were not able to complete them, and we had to take them to the next quarter, that is the current quarter. So that was one primary reason or a major reason, I should say. There were two such projects. On the margin front, if you recall, we had a project from JESA for OCP for Morocco. So and that execution has commenced, and that was a project with little higher margins. So this was one of the contributing factors.

• Agastya Dave: That project, while it is still under execution, will the margins continue to be like this? Or this was just a bump-up at the initialisation phase and then we will taper down to like mean revert back to the original margins?

• Ranjit Lala: See, Agastya, we've always mentioned that we will be able to maintain margins on 20-plus basis. And to be more specific, between 20 and 22, this is what we expect. Now there could be some quarters like when it jumps up, it goes down slightly. I think last quarter, it was around 23. So this keeps happening. This keeps happening.

• Amritanshu Khaitan: Agastya, this margin which Ranjit is guiding for is at a consolidated basis. So one thing which is very clear is that you have to look at Kilburn

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Kilburn Engineering Limited Q4 & FY25 Post Earnings Conference Call May 22, 2025

Engineering in a consolidated form because there's going to be work which M.E. Energy does for Kilburn, Kilburn does for M.E. There will be a lot of movement around in order flows execution. We will try to leverage the strengths of all the organisations put together to deliver a consolidated performance.

So when we are guiding for between 20% to 22%, that is the range we are guiding at a consolidated level. There's still one order which is on hold, where we had a large order from Granules which had come. We are still working with them on their pilot part of the order, which hopefully in the next three, four months should get completed, then that order will go into commercial production. So that's a ₹70-odd crore order, which we had hoped by the third, fourth quarter of last year, it will get into execution. That also has been on hold.

So those are the reasons why there has been a postponement in execution for certain jobs, but we are very happy that we've been able to make up on the EBITDA front through other profitable orders. So the product mix had been better.

• Agastya Dave: Yeah. The margins are like really, really nice, really, really nice. One final question. You mentioned that the order pipeline and inquiries are at ₹3,000 crores plus now. Last quarter, if I remember correctly, you were saying ₹2,000 crores. Is it because of like consolidation? Or is it just an increase and expansion in the inquiry flow?

• Ranjit Lala: Well, if you recall, last year, it was ₹2,000 plus for both M.E. Energy and Kilburn put together. And now we also have Monga Strayfield. So between the three of us at consolidated level, we have ₹3,000 crores plus. So we are getting more inquiries than before, that's for sure. Yeah. And in the past, probably the inquiries that we are looking at were also, if you look at the value, they would have been ₹100 crores or ₹60 crores, ₹80 crores. Now we are looking at bigger inquiries. So that's how the whole pipeline has grown.

• Agastya Dave: Understood. Thank you very much for giving me the opportunity. All the best. The numbers are actually pretty decent. Pretty decent. If it's a spill over effect, we'll see it in the next quarter. My congratulations, thank you very much. All the best.

Ranjit Lala:

Next two quarters, yeah. Thank you, Agastya.

Moderator:

Thank you, Agastya. We'll take the next question from Sagar Shah. Sagar, you can unmute and go ahead please.

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Kilburn Engineering Limited Q4 & FY25 Post Earnings Conference Call May 22, 2025

Sagar Shah:

Good evening. And first of all, congratulations to the entire team of Kilburn Engineering for posting such a healthy operating performance actually. Now my first question was related to actually M.E. Energy. M.E. Energy in this year, we posted around ₹77 crores of revenue. And as far as I remember, last year, you said that M.E. Energy, due to its working capital constraints wasn't able to take larger orders. It was just confined to small boilers and those sort of products.

So in this particular year also, we didn't see some material growth from M.E. Energy, and that is why the Kilburn Engineering on a consolidated basis actually missed our estimates. So first of all, can you say about M.E. Energy that is there some execution lag or maybe some longer gestation period so that we maybe see some good growth in FY '26 or whatever colour that you want to at least spread on M.E. Energy?

Amritanshu Khaitan: Ranjit, if I can take this point, I think as I mentioned earlier, you need to now look at Kilburn Engineering in a consolidated basis. The figure which you're talking about M.E. Energy, that is net of certain turnover, which is coming in the standalone numbers as well. They get net off because some orders which Kilburn has got, but M.E. has executed it. So actual execution of M.E. Energy is close to ₹95 crores. But it gets net off because it's a subsidiary of Kilburn.

So you have to look at Kilburn as a whole achieving ₹425 crores. Our opening order book is ₹480 crores. We strongly believe we will deliver a 50% CAGR growth this year on the basis of this consolidated opening order. And then the year after, we are looking at a 25% to 30% growth because again you'll have the Monga Strayfield acquisition full impact coming into this year.

So unfortunately, because you had both the acquisitions happening in the month of February in both consecutive years, the quarter four numbers are not at all comparable to each other. So you have to look at the consolidated yearly performance. If you add Monga Strayfield also, actually, the year of Monga Strayfield had been close to ₹80 crores, but only ₹12 crores is being reflected in the balance sheet.

So when you look at where we are today and the money we have spent to acquire Monga Strayfield, the company is already at a ₹500 crore top line level with a higher EBITDA. But that EBITDA and top line has got lost because that's how accounting happens.

Sagar Shah:

Yeah, because of the intercompany transactions that you are referring to...

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Kilburn Engineering Limited Q4 & FY25 Post Earnings Conference Call May 22, 2025

• Amritanshu Khaitan: And also because the acquisition had happened in the month of February. So the whole year's turnover last year of M.E. did not come in, and this year of Monga has not come in. So we are looking kind of 50% CAGR growth for this coming year, the year we are in now, FY '26, on the base of ₹425 crores. And we are looking at 25% to 30% growth in the following year.

Sagar Shah:

• Sure, so my question was at least for FY '26, since M.E. Energy is penetrating into cement and some, now it has capable to take some even larger orders actually as high as ₹100 crores also. Obviously, the period that will take to build these products will be longer time. But at least on M.E. Energy on a standalone level and especially when the Phase 2 CapEx also will be over, if I assume by at least by H1 FY '26, so at least, can we expect at least a decent 50% growth from M.E. Energy on a standalone level, I'm saying.

• Amritanshu Khaitan: So again, I would like to highlight that this year, we have grown by 30% if you look at M.E. Energy standalone. We believe we should continue to grow at between 20% to 30% for the standalone business. But again, my only request to the investor community is don't look at M.E. Energy as a separate company. Look at it as a separate manufacturing facility because there will be a lot of work of Kilburn also which will get offloaded into the expanded plant of M.E. Energy in Pune.

So M.E. Energy will be making air preheaters, paddle dryers, maybe some tea dryers as well because we will leverage our strengths as a group to deliver the best products at the best prices to our customers. So it is not appropriate to look at M.E. Energy as a separate going concern, but as part of the consolidated Kilburn Group.

The question you had on cement industry, it's early days. We have got one order which we are executing. And we are going to work with, we are approaching various cement companies to get into that sector. So hopefully, in the next two to five years period or three or five years, you should see M.E. Energy scale up the play in cement to a much more substantial number, but these things take time. It's not going to happen overnight.

Sagar Shah:

Okay. Sure. My next question was related to Monga Strayfield as well as to our Ambernath acquisition. Now with Ambernath acquisition, our capability actually to build products has also increased. Recently, you took a large order for around four rotary dryers also. So basically, at least from Ambernath and from Monga, can we expect optimum utilisation since you have a large order book of nearly around ₹435 crores closing order book, I'm speaking. So that is one thing.

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Kilburn Engineering Limited Q4 & FY25 Post Earnings Conference Call May 22, 2025

And the second one, can you throw some light on the order inflow that I know ₹3,000 crores worth of inquiries, but obviously, to convert those inquiries into revenue, you must have got some clarity that how is the demand at least from certain sectors on ground. So can you throw some light related to order inflow also?

Ranjit Lala:

On the order inflow front, as I said, we would have a conversion of around 20% to 25%. So if we're having a ₹3,000 crores pipeline, so you can expect ₹600 crores to ₹700 crores of order intake.

On the Ambernath factory, as I said it is fully operational. So I would say that whatever we had targeted, ₹100 crores of addition into the turnover, that should happen in the current year, yes. So that will definitely again contribute to the top line. But that is any asset of Kilburn. It's not an acquired company, it's a unit of Kilburn. So both these are well on track.

On the M.E. Energy front, you mentioned that the Phase 2 expansion should get completed by H1 end. It will be somewhere around, I think middle of H2. This is what I can guess as of now. And on that, we'll keep you updated.

On the Monga Strayfield, you had a question on what could be the top line contribution?

Sagar Shah: Yes. How are things panning out now? Because you were quite a bit on the industrial trials front because of opening of FMCG and other sectors due to this acquisition. So how is this panning out for you when you talk to the customers of maybe of Monga Strayfield, and how are the synergies can be built in this particular year?

Ranjit Lala: So Monga Strayfield is into RF dryers, which is a very, very niche market. And I think we are well placed with the customers, and we are looking at some exhibitions and some trials for new applications, which is very much on track. Now how much top line do we expect from them? Well, I would say that anything between ₹90 crores to ₹110 crores is what we are looking at, yeah. But as we go forward, we'll be more clear about the numbers.

But again, as I said, we don't want to look at each of these companies by themselves. We are targeting consolidated top line.

Sagar Shah: Okay. And just last a couple of questions on data keeping. First of all, can you highlight that are we something like going ahead, how are we going to utilise the money actually? Because in this particular year, you will be getting around ₹200 crores from the issuance of your shares that you have done before to public shareholders. So around ₹200 crores of money that

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Kilburn Engineering Limited Q4 & FY25 Post Earnings Conference Call May 22, 2025

you'll be receiving this year. So any plans that you have built for some new acquisitions and that is one thing.

Another data keeping question that I wanted to confirm, the new equity share capital. Post the dilution this year, will be around ₹52.6 crores, right?

• Sachin Vijayakar: Yeah. Correct.

• Sagar Shah:

Okay. So can you throw some light, that how are you planning to utilise this money? Or still the plan is not really made?

• Ranjit Lala: No, no the plan was very much made. In fact, there's a reason why a certain amount was raised. The breakup, I would request Sachin to give it to you.

• Sachin Vijayakar: We have already taken our shareholder approval where the utilisation was mentioned. Part of it will go towards CapEx, part will be going towards repayment of our term loan. Part of that will be towards investment into our subsidiaries.

On balance, we will decide what is for working capital as well as some general corporate use. So as and when opportunities come, that will be accordingly utilised. And not by this year-end because we have got 18 months. So something of that may spill over to the next year also.

• Sagar Shah: Okay. Fine. And just last thing on the gross margins. I know you have guided that you are aiming for 20% plus EBITDA. And this is a project business, every contract has a different numerical values attached to it. But on the gross margin front, I wanted to stress on that this quarter was a phenomenal quarter at least for the gross margin perspective. So overall, the gross margins, even if the metal prices go high, so our gross margins will relatively stay stable at around in the last few years that we have brought that around 40% and 50%.

• Amritanshu Khaitan: Sagar, regarding gross margin, we don't want to give any detailed explanation because sometimes what happens is certain costs come into materials, some subcontracting work happens. It's basically deferring to different jobs. So we restrict ourselves to guiding for EBITDA.

Sagar Shah:

• Okay. Sure. No problem. Thank you so much for answering my questions and all the best.

Sachin Vijayakar:

Thank you.

Ranjit Lala:

Thank you.

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Kilburn Engineering Limited Q4 & FY25 Post Earnings Conference Call May 22, 2025

• Moderator: Thank you, Sagar. We'll take the next question from the line of Atharva Shiledar. Atharva you can unmute and go ahead please.

• Atharva Shiledar: Actually, I want to ask on a consolidated basis, our revenue and profitability look very good. But our CFFO is not good for many years. So currently, on a consolidated basis, CFFO is negative. So can you explain?

• Ranjit Lala:

• Can you come again?

• Moderator: He's asking about cash flow from operations.

Ranjit Lala: Okay. Sachin, can you take this?

• Atharva Shiledar: Actually cash flow is negative ₹10 crores for this year, but our revenue and profit growth is very good. So I want to understand what is the problem, why cash flow conversion is not happening?

• Sachin Vijayakar: Atharva, if you see with the long delivery of our projects and the times that are taken, there is a buildup of debtors as well as our unbilled revenue contract assets. In the last month itself of March, we have dispatched around ₹30 crores to ₹40 crores of billing has been done. So that has led to increase in our debtors also. And even though the cash flows from operations is negative, we have put in funds for the buildup of this inventory through this share issue as well as sort of ICDs, which we have taken from our subsidiary companies. So it has been…

• Amritanshu Khaitan: I would like to add, you see one reason why you will see that the standalone balance sheet has a term loan, which has come in short-term term loans, it is actually from Monga Strayfield only. So in your cash flow statement, there's a variance because the company paid extra to Monga Strayfield shareholders because they were sitting on ₹30 crores of cash balance. So once the acquisition was completed, we've taken that as an ICD back in our books and M.E. Energy's books.

• Atharva Shiledar: Okay. I have another question. So can you give guidance for the CFFO to PAT conversion for the next year? I just want to know, how do you see CFFO to PAT conversion for the going forward?

Amritanshu Khaitan: Sales to PAT?

Atharva Shiledar: No. CFFO to PAT?

Moderator: Cash flow from operations to PAT.

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Kilburn Engineering Limited Q4 & FY25 Post Earnings Conference Call May 22, 2025

• Atharva Shiledar: Convergence on percentage basis, how do you see going forward? For example, if PAT is ₹100 crores and cash flow is ₹40 crores, it means 40% conversion. How do you see going forward?

• Amritanshu Khaitan: I think this is a little difficult to predict because it depends on the kind of order booking we get this year, the kind of growth the company is doing. But I can only tell you that we are adequately capitalised and cash flow will not be a concern, because there will be free cash flows generated and also there will be equity money, which will come in for working capital as well. But it's very difficult to predict what you are saying, because it also depends on what order booking we will do and then how much of that goes into execution.

• Sachin Vijayakar: Also, the conversion will help on cash flows.

• Atharva Shiledar: Okay. Thank you.

• Moderator: We'll take the next question from Mr. Kartik Bhat. Kartik you can unmute and go ahead, please.

• Kartik Bhat: Yeah. Thanks for the opportunity. My question is on the capacity. I think in an earlier call also, you had mentioned that the Ambernath unit is likely to be at about 100% or so by June and the Saravali unit is likely to be at around 70% to 80%. And any Phase 1, I think is also again at 100%. So how are we placed with respect to capacity for FY '26? I mean, do we feel the need for maybe expanding capacity to meet the demand for FY '27?

• Ranjit Lala: Well, as far as Ambernath is concerned, yes, it is now at 100%, fully operational. M.E. is also 100%. And we said that we'll look at Phase 2 expansion for M.E., right? So that should add to capacity. And we had also mentioned that we are looking at a brownfield expansion at Saravali, but that we will do at the right time. It is very much on the plans. And as it really takes shape, we will keep you posted. And I'm sure it will be very clear by end of quarter one.

• Kartik Bhat: Okay. Sure. And just one clarification. I think the other expenses if we were to look at, there's been a reasonable jump Y-o-Y to about ₹23 crores or so. What factors led to this increase…?

• Amritanshu Khaitan: We've had certain jobs where there's a lot of freight involved. I think that goes into other expenses. Sachin can confirm.

• Sachin Vijayakar: Yeah. Right.

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Kilburn Engineering Limited Q4 & FY25 Post Earnings Conference Call May 22, 2025

• Amritanshu Khaitan: But that is all factored in the margin. Some export jobs were there, where there was high freight.

• Kartik Bhat:

• Okay. Sure. And I think it was good to see, if I were to look at the order book composition, nuclear comprises about 45% to 50% of the new order inflow in Q4, so something which wasn't there in the past, which is really heartening to see. So do we have more enquiries in the pipeline in FY '26 as well? And can we see expected decent order inflow from nuclear for this year also?

• Ranjit Lala: Yeah. So in our previous calls, we had mentioned that we are looking at the nuclear power also contributing in the coming quarters. So we did convert one into an order. This was from L&T, because L&T is an EPC contractor for that particular job. There is one more project on which we are working, which is probably of the same value. As of now, one more project is visible. And as and when we go forward and we have more opportunities, we will keep you updated.

• Kartik Bhat: Sure. Okay. This ₹650 crores to ₹700 crores, revenue guidance which you had mentioned I think in an earlier call, seems comfortable now for FY '26?

• Ranjit Lala: Yeah. I think we are comfortable on that because now the capacities are also have been added. And well, there's always a slippage, as I said by a quarter. which I hope will be taken care of for one of the projects. I don't see a challenge.

• Kartik Bhat: And is it fair to say that so this higher growth trajectory in FY '26 is mainly being driven by the OCP Morocco order as well as these Granules project that you mentioned? And thereafter, in FY '27 while we are guiding for about 20%, 25% as of now, if we were to receive a similar higher-value order, I mean as and when we may revise the guidance as well during the course of the next year, is that a fair assumption?

• Amritanshu Khaitan: When we are looking at 25%, 30% growth in FY '27, that is based on the current enquiry pipeline which is there. So if we are able to convert 20%, 25% of the current enquiry pipeline, then automatically, the following year, the growth number should be achievable.

• Kartik Bhat: Okay. Sure. Thank you so much.

Moderator: Thanks Kartik. We'll take the next question from Bharat Gupta. Bharat, you can unmute and ask your query please.

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Kilburn Engineering Limited Q4 & FY25 Post Earnings Conference Call May 22, 2025

• Bharat Gupta: Sure. Thanks for taking my question. A couple of questions. So first, when we look at the customer deferment which has happened, can you specify the quantum of revenues which have got spilled over to quarter one?

• Ranjit Lala:

• Sachin, can you take that?

• Sachin Vijayakar: Nearly ₹50 crores to ₹60 crores of revenues.

• Bharat Gupta: Right. And we'll be able to see it in quarter one, right? Or it is...

• Sachin Vijayakar: Quarter one, quarter two both.

• Bharat Gupta: Okay. And I think we were looking out some sort of inorganic acquisitions, and that to overseas. So what's the progress in regard to it? Like it's still under discussion or like we want to grow organically first?

• Ranjit Lala: Well, right now, we would like to focus on our current subsidiaries and Kilburn, yeah. But if we find something interesting, we will not hesitate to go ahead. As of now, we are very keen on streamlining what we have.

• Bharat Gupta: Thank you. And just a bookkeeping question, like in regard to ₹650 crores or ₹700 crores revenues, which we are projecting for this fiscal year, so that includes the Granules India contribution or that particular part is currently on hold?

• Ranjit Lala: No. Well, it does include Granules India, but then we have sufficient backup. So we have enough orders, and I'm sure some more orders will be coming in this quarter. So overall, I don't see a challenge.

• Bharat Gupta: And on consol level, we are guiding for 20% to 22% kind of margins?

• Ranjit Lala:

• Right.

• Bharat Gupta: Okay, that is it from my side. Thanks.

• Ranjit Lala:

• Thank you.

• Moderator: Thank you, Bharat. We'll take the next question from the line of Prem Soni. Prem, you can unmute and go ahead, please.

• Prem Soni: So, thank you for the opportunity and congratulations for the good set of numbers. So my question is on the order book side. Like in the PPT, we have mentioned that order book inquiry is around ₹3,000 crores. So can you...

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Kilburn Engineering Limited Q4 & FY25 Post Earnings Conference Call May 22, 2025

• Ranjit Lala: Sorry, that is inquiry pipeline, ₹3,000 crores. Prem Soni: Yeah. This is the order inquiry of around ₹3,000 crores, right? Ranjit Lala: Right.

• Prem Soni: So about 20% or 25% is the conversion rate. So I believe ₹600 crores to ₹700 crores is the order book size can we expect?

• Ranjit Lala: That's our expectations as on date.

• Prem Soni: So can you help us with the bifurcation in terms of the subsidiary like for Monga Stray and M.E. Energy?

• Ranjit Lala: Yeah. So I can say that if it's around ₹600 crores, ₹400 crores from Kilburn and ₹100 crores and ₹100 crores from Monga and M.E. Energy. I'm just giving you a broad number.

• Prem Soni: Okay. And additionally, if the order book that we are anticipating from ₹400 crores from the Kilburn and ₹100 crores and ₹100 crores from the subsidiaries, so like in the subsidiary, in which sector we are anticipating from higher order from upcoming times?

• Ranjit Lala: Let's talk about Monga Strayfield. So in the past, they have had major contribution from the textile vertical and then from the food and then others. So we are expecting the food and we are expecting the non-textile business to grow much faster in this year, okay? That's one.

• On the M.E. front, it is a combination of various verticals. Definitely, our focus is on cement, but I also see the petrochemical, oil and gas vertical contributing to M.E. Energy also. And as far as Kilburn is concerned, it's a mixed bag. We have inquiries from the nuclear. We have inquiries from the fertiliser. We're expecting some inquiries from petrochemicals, carbon black; soda ash, maybe, maybe not. That depends on how the market moves. So it's a mixed bag.

• Prem Soni: Okay. And by when it can be executed, like if you have tentative time line?

• Ranjit Lala: Well, any orders that comes in, in Q1 and Q2, normally, the Q1 orders would get executed by the end of the year. And Q2, partially, it could get executed, I mean, because our turnaround times are between seven to 11 months, sometimes 12 months.

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Kilburn Engineering Limited Q4 & FY25 Post Earnings Conference Call May 22, 2025

• Prem Soni: Okay. And are we exporting these order to the overseas? Like... Ranjit Lala: Yes. in fact, we have a good export order book. The exact number, maybe Sachin can inform, but we have very good order book on the export front also.

• Prem Soni: So can we have just quantum numbers like in terms of percentage? Ranjit Lala: Sachin, can you give this number if you have it ready? Sachin, you're muted, I guess.

• Sachin Vijayakar: Out of the order backlog, nearly ₹160 crores are export orders. Prem Soni: ₹160 crores?

• Sachin Vijayakar: Yes, rough cut on the export orders.

• Ranjit Lala: You can see it has grown over years.

• Prem Soni: Okay, And how we are confident on the 20% to 25% of growth in the next FY '26 and FY '27? Like if you can shed a light on that part?

• Ranjit Lala: Well, the existing numbers make us feel confident. The open order book that we have, the inquiry pipeline that we have, the kind of goodwill that we enjoy with the customers, the references that we have created, both in the domestic and the international market, I would say these are the pointers towards our confidence levels.

• Prem Soni: Okay. And can we assume the EBITDA margins will remain same as per the FY '25? Like...

• Ranjit Lala: They will remain 20% plus at consolidated level. If you want a more specific range, I will say between 20% and 22%.

• Prem Soni: Okay, fair enough. Okay, thank you. And thank you, congratulations. Ranjit Lala: Thank you, Prem.

• Moderator: Thank you, Prem. I would like to invite Aman Baheti, analyst from InCred Capital from the chat line to ask his queries. Hi, Mr. Aman?

Ranjit Lala: Can you read out the question from the chat? Moderator: Since there's a posted question, you want to...

Page 14 of 24

Kilburn Engineering Limited Q4 & FY25 Post Earnings Conference Call May 22, 2025

Ranjit Lala: There's a question from Ankur Tripathi. What top line contribution is expected from Monga Strayfield acquisition in the next and subsequent financial years?

Well, Monga Strayfield contribution in terms of top line, we are targeting ₹100 crores plus. This is the first year, and then we are looking at what are the opportunities, but I would expect around ₹100 crores. I mentioned it's between ₹90 crores and ₹110 crores. As discussed in the last con call, the projected top line was ₹700 crores. Considering the recent acquisitions of Monga Strayfield, I'm just reading out the question, is there an upward revision?

No. Well, let me tell you that we have just mentioned, we expect a 50% growth from the current year's top line. I'll stick to those figures. So whatever that works out, ₹675 crores, ₹700 crores, yes.

Moderator: And we'll take the next question from Samir Palod. Samir, you can go ahead.

Samir Palod: Hi, thank you for the opportunity. A good set of numbers. Just one question regarding the guidance. If there is a 50% expected top line growth, let's assume that number to be about ₹650 crores. But the EBITDA guidance of between 20% and 22% is a result of what is it, that Monga and M.E. Energy are at slightly lower order book or part of your core order book in the parent company, you're seeing at lower margins because that will then lead, if I have a 20%, 22% EBITDA margin, then the EBITDA has only ₹140 crores, which will not be a full 50% jump. So I just...

Amritanshu Khaitan: So Samir, can I address that?

Samir Palod: Sure.

Amritanshu Khaitan: We are in a project business. It is not possible for us to guide down to the nearest percentage. We have always maintained 20%-plus EBITDA margin for last many quarters, and we have successfully achieved or beaten those estimates. In a project business, when you are executing jobs, you take a job on the basis of a certain estimate. When the execution happens, there can be variances, 1% or 2% here and there. Our time line execution also can change.

When we are guiding 50%, you can say 50% means that ₹670 crores or ₹675 crores or ₹720 crores. It's not possible for us to give you accurate numbers. There can be times when customers...

Page 15 of 24

Kilburn Engineering Limited Q4 & FY25 Post Earnings Conference Call May 22, 2025

Samir Palod:

Mr. Khaitan, I get that. I just wanted to know, you have already delivered 24%. So in the full year, I'm not even looking at a quarter where it is 28%. In the full year, 24%, so I just wanted to know if it is conservative, that's great. Or are you seeing slightly lower profitability orders within your order book?

Amritanshu Khaitan: When you look at the overall business, Monga Strayfield business is very profitable. So that's at about 24%, 25%. M.E. Energy is at around 15% to 17%. So blended margin for those businesses are around 20% odd. Kilburn is slightly higher, as we mentioned. So we are confident of between 20% to 22%.

Now when we are giving a guidance, we are giving a guidance assuming future orders, which will also come in the second half of the year. We don't know exactly at what margin that will come. So that's why we give a range. Now that 22% can easily be 24%, but it can also be 20%. So that's why we are comfortable that as a management, we are looking at a 50% CAGR growth, both in top line and bottom line. Now whether that 50% becomes 45% or 52%, that's for investors to take a microscope and look at it. It's very difficult for management to be that accurate, especially for project business.

Samir Palod:

No, I understand. I just wanted to know whether there is any sort of orders that you're seeing which are lower margin, if you...

• Amritanshu Khaitan: We are being conservative. As you mentioned, we prefer to be a little conservative. If we are able to do better, that's good for everyone.

Samir Palod: Right. Thanks for that. And my second question is, you obviously can't disclose anything that is still in the works, but are you looking at acquisitions currently? And do you foresee anything will likely happen in FY '26?

Amritanshu Khaitan: So we've done two acquisitions in two years. We believe we'll deliver a very strong growth organically. We want to consolidate this. We have raised future capital, which will come in over the period of next one year. So we are not concerned about cash flow.

When that happens, we are always open to opportunities. We have done two transactions which are value accretive, acquisitions which have been reasonable and have added value to the organisation. If something like that comes behind it, our thought process is to be open and to look at opportunities. Maybe something will happen by end of this year, some great opportunity comes. If not, also, we are very confident on strong growth.

Page 16 of 24

Kilburn Engineering Limited Q4 & FY25 Post Earnings Conference Call May 22, 2025

So we are not dependent on acquisition for growing the company. We are in discussion for technology tie-ups, and we are in advanced stage for that. So every strategy for growth does not have to be inorganic. There are technology tie-ups which we are looking at with companies in the U.S., in Europe and in Japan where once we do those tie-ups, it will open up some more opportunities for getting business. So rest assured, the management is working very hard to ensure that the momentum we have created, we would like to continue that.

• Samir Palod:

Just a follow-up to that. No, I understand that it doesn't have to be an acquisition. My limited question was, are you in discussions today? Are there opportunities that you're already seeing, which could culminate in an acquisition before the end of FY '26?

Amritanshu Khaitan: So we are in discussions for some important technology tie-ups. We are..

• Samir Palod: In what area would they be, Mr. Khaitan?

Amritanshu Khaitan: In various drying solutions and heating solutions.

• Samir Palod: Okay, thanks.

Ranjit Lala: Yeah, we'll always stick to our core business. Yes. Before we move ahead, Vinay, there's a question directly to me on chat from Mr. Gopesh Sharma. I would like to take that. What is restricting us to have order conversion rate of only 20%, 25%? Is it because of L1 criteria or we skip low-value orders or any other factor forcing us to keep the conversion to one-fourth?

So Gopesh, first of all, we don't operate on L1 basis. I would like to say that, and we have made it clear in the past because we work with our customers very closely. So we are not always on the L1 basis. But if required, if we need to bag a job, we take a call whether we should follow this strategy. Our strategy depends on what orders we want to bag and how well loaded we are.

What are the other factors? Well, there are many factors, how important the job is to us, how important the customer is to us, whether we have sufficient capacity to handle that. There are a number of factors. And that's why these strategies could change from quarter-to-quarter. I hope I've answered that question.

• Moderator:

Thank you. So there's one more question in the chat. Yugal Kishore is asking, what's your time line for NSE listing?

Page 17 of 24

Kilburn Engineering Limited Q4 & FY25 Post Earnings Conference Call May 22, 2025

• Amritanshu Khaitan: I don't think we can give any particular date for that. The Board has approved it that we are going to apply for the listing, then it is up to NSE to see what is the process and the time line, but we can't give a particular date.

Moderator: Thank you. We'll take the next question from Abhijit Mitra. Abhijit, you can unmute and go ahead please.

• Abhijit Mitra: Yes, thanks for taking my question. I have a relatively simpler one. The orders that you have on a consolidated basis is close to ₹487 crores or ₹488 crores. What's the execution cycle broadly that you see on those orders?

• Ranjit Lala: As on date, I would say all that should get executed within this financial year if there are no holdups. Typically, for Kilburn, it is seven to 11 months or 12 months. So I expect this complete portion to get executed and much more because we'll have orders in Q1. For Monga Strayfield, I would say the execution time is between three to four months most of the time. So that will get executed, and many orders coming in the first three quarters can get executed.

• For M.E. Energy, typical execution time depends four to six months, sometimes eight to nine months if it is some site execution. So it's different for each of the companies. Whatever is the open order book today, that will definitely get executed.

• Amritanshu Khaitan: I think, Ranjit, the only one which might see some spillover depending when the Granule job...

• Ranjit Lala: Granules, so yeah. But for that, we have a backup project also. So I made it very clear that Granules project, even if that spills over, we have sufficient pipeline to take care of that miss.

• Abhijit Mitra: Perhaps the Morocco project, that will also be a slightly longer duration, right?

• Ranjit Lala: No. Will be expected to finish on time.

• Abhijit Mitra: Okay. Got it. Understood. And just to understand, to sort of maintain a 50% growth and follow it up with 25% growth, I mean if we have to name say a couple of sectors, because that's almost ₹1,400 crores of incremental top line over the next two years. So if you have to sort of name, say one or two sectors where you're more confident which can sort of help you achieve this targeted growth rate, it would be great.

Page 18 of 24

Kilburn Engineering Limited Q4 & FY25 Post Earnings Conference Call May 22, 2025

Amritanshu Khaitan: Abhijit, it's not going to be one or two sectors. One of the biggest strengths Kilburn has, that we are present in multiple sectors. So you can see now with nuclear coming in, obviously, Carbon Black is a mainstay fertiliser becoming important with our entry into OCP, then you have steel sector for M.E. Energy, which is quite important, chemical sector there.

So if you see our presentation, we are present in now multiple sectors, which actually adds to our confidence on being able to get the orders and execute and grow. And today, Monga Strayfield is bringing in the textile sector, which was earlier not there. So I think we have a very large spread of sectors, which cushions us from any slowdown. Like, for example, soda ash as a sector has been slow due to the dumping from China. So that's not affecting our growth today. But whenever that gets solved, you will have big expansions coming in, in soda ash as well. So maybe that can come a year later.

Ranjit Lala: And I would also request, Abhijit, that you referred to our presentations in the last four quarters. And if you refer to the pie chart giving you the breakup of these sectors, you will find that it has been quite dynamic and changing. So at any point of time, a particular quarter, you would have seen one sector or one vertical contributing. But again, in the next quarter, we have something else coming up. So it's a very dynamic situation. But yes, Carbon Black, petrochemicals, fertilisers, nuclear, these will be definitely the major contributors. That's what we are seeing in the next two quarters.

• Abhijit Mitra: Got it. Understood. That's very clear. And thanks. That's all from my side. Wish you all the best.

Ranjit Lala:

Thank you.

Moderator: Thank you Abhijit. We'll take a question from the chat. Mr. kashab is asking, what was the order enquiry pipeline in FY '24? Like it is ₹3,000 crores in FY '25. What has the growth been in enquiry pipeline?

Amritanshu Khaitan: It was ₹2,000 crores.

Ranjit Lala:

And now it's ₹3,000 crores. So that's a 50% jump in the enquiry pipeline.

There is one more question on the chat. I think it's already been answered. There's a question directly to me, which says that when will the listing be done on NSE? I think this has been answered by Mr. Khaitan.

Moderator: Thank you. We'll take the next question from Santhosh Varma. Santhosh you can unmute and go ahead, please.

Page 19 of 24

Kilburn Engineering Limited Q4 & FY25 Post Earnings Conference Call May 22, 2025

• Santhosh Varma: Good evening. Thank you so much for the opportunity. I have two questions. The first question is regarding the international piece where what kind of exports we're looking into and what kind of growth we're looking into the export part? And what kind of percentage contribution we can expect in the next two to three years from international export?

• Amritanshu Khaitan: So as mentioned in earlier calls, the global market for drying solutions is close to $2 billion to $3 billion. We are as a company, looking at focusing on exports. We believe we should be aiming to do at least 20% to 30% of our revenue from the export space, which should be the target in the next two to three years.

• Santhosh Varma: Okay. So exports, do you have any margin equation where we get better margin?

• Amritanshu Khaitan: Theoretically, yes, but there are times when certain jobs in India also be very high margin.

• Santhosh Varma: Okay. And then in exports, it will take a number of days to execute because of the supply chain or something like that?

• Amritanshu Khaitan: That doesn't make a difference, because execution will happen in India, then there's only the dispatch and freight, and depending on which geography it is that extra timeline gets added. But the manufacturing process is the same.

• Santhosh Varma: Okay. So this export growth which you're looking at, will it majorly come from Monga and M.E., or Kilburn will also be part of it, like major contribution?

• Amritanshu Khaitan: It will be all three.

• Ranjit Lala: All three.

• Santhosh Varma: Okay. My last question is regarding the working capital and all. Are we expecting it will become better for example from '24 to '25, it went up from 131 to 194 days. In the future, will we see better working capital and all?

• Amritanshu Khaitan: So again, I think Mr. Sachin Vijayakar highlighted this, that it is not to do with becoming better or worse. It is the nature of the business that there are certain months where there's heavy dispatches, which are taking place. And because of that, you will only see the balance sheet on two dates, 30th September and 30th March. So that's why these changes happen. Plus close

Page 20 of 24

Kilburn Engineering Limited Q4 & FY25 Post Earnings Conference Call May 22, 2025

to ₹25 crores has come in as ICD from the subsidiary, which is the money we paid the shareholders of Monga Strayfield. That also has impacted this. Sachin, if you can add?

• Sachin Vijayakar: Yeah. Because once we have start executing the longer lead projects. And if we start taking more advances from the customers also, which we are trying, so then we will be able to maintain this working capital cycle of lesser number of days. Better credit terms from our vendors also. So that will help us in reducing this larger working capital days.

• Santhosh Varma: Understood. Thank you so much for your time and thank you for answering the questions. Thank you.

• Ranjit Lala: Thank you.

• Moderator: Thank you, Santhosh. We'll take the next question from Mr. Naman Bhansali. Naman, you can go ahead please.

• Naman Bhansali: Hi, thank you for the opportunity. And great set of numbers. My question is on the business wherein we have been opening our business towards multiple new sectors, and one of them was cement, second is pharma with Granules. So once the initial ordering of these two companies, maybe from Shree and Granules complete, what sort of opportunity does that open up for us into these two sectors? And what sort of capability have we built in by delivering to these initial projects with the two companies?

• Ranjit Lala: So for the cement, I would say the market size would be around ₹4,000 crores to ₹5,000 crores. So let's see how much of that pie we can get. That's one. And as far as the execution skills are concerned, we very much had those skills in M.E. Energy. It was some other reasons why those large orders could not be back. So once we have completed, we have a good reference, I'm sure we'll have more opportunities. And the fact is that we have given a very customised solution to Shree Cement. So I'm sure we'll have a good reference for the future. What was the other question? Can you kindly repeat it.

• Naman Bhansali: On the pharmaceutical side.

Ranjit Lala:

On the pharma, yeah. So again, Granules, as I mentioned, this was kind of a pilot order for us for the API. And we also have to keep in mind that our end customer has to be successful in their trials. Once that is done, there will be more enquiries coming in.

Page 21 of 24

Kilburn Engineering Limited Q4 & FY25 Post Earnings Conference Call May 22, 2025

Naman Bhansali: Got it. Thank you. Second question is for Mr. Sachin. What is the CapEx guidance for this year or maybe the next two, three years?

Ranjit Lala: I would like to answer. So as of now, I can tell you that we are targeting somewhere around ₹25 crores, but that is very fluid as of now. We haven't taken a call. Probably we'll need one more quarter to decide that. And that's why I have not made any reference to CapEx in this quarter.

• Naman Bhansali: Got it. Thank you. That's it.

Moderator: Thank you. We'll take the next question from Tejash Thakkar. Tejash, you can go ahead please.

• Tejash Thakkar: Thank you for the opportunity. I have two questions. Currently First is we have 5.09 crores of outstanding shares. Are we looking at for the dilution? And if not, is there any ESOPS or anything that is given out? And what is the likely number that we're going to end up in FY '26, so that will affect the EPS at the end of the year?

• Amritanshu Khaitan: The current shareholding is 4.75 crores share, not 5.09 crores. I think what you are referring to are some outstanding warrants, which are there. So all that will get converted by June, July of FY '26. So you'll be raising up further ₹200 crores into the company, which is already committed in the warrants. And that will get all completed by, Sachin, June '26 or July '26? Something like that.

Sachin Vijayakar: June '26 18 Months from all issue. Total capital is 5.62 after entire conversion.

Tejash Thakkar: 5.62, is it?

• Sachin Vijayakar: Right.

• Amritanshu Khaitan: Yes. But that will be in FY '27.

• Tejash Thakkar: Second question is, I'm just circling back to the order book. So if I understand correctly, 487 is the current number. And what I gather from the previous call and in this call, we need about roughly ₹200 Cr by end of May so that we can achieve the lower kind of ₹650 crores for next year. So as of April and as of May, and if you can share...

• Amritanshu Khaitan: No. It doesn't work like that in terms of calculation. You see when we are guiding for 50% CAGR growth, we are looking at Monga Strayfield achieving ₹100 crores. Now that ₹100 crores, those orders don't come in the

Page 22 of 24

Kilburn Engineering Limited Q4 & FY25 Post Earnings Conference Call May 22, 2025

beginning of the year. That comes through the year. The tea dryer business, it's a very quick execution for the company. That also comes that period of between October to December, and gets executed by March. So you don't need ₹200 crores by June to achieve the numbers which we've spoken.

Also, whatever orders we get in the third quarter, up to third quarter, some part of that comes into execution. Like for example, we got the Morocco order in September. That's already come into execution. So I don't think it will work like the way you are calculating.

Tejash Thakkar: So my calculation was based on the inputs that roughly it takes about seven to 11 months is the average...

• Amritanshu Khaitan: But we do unbilled revenue. It's work in progress also, which comes into our top line.

Sachin Vijayakar: Percentage completion is also done. So not necessarily entire equipement has to be despatched

• Tejash Thakkar: So can you share what is the additional order for April, May? Is it possible to share the confirmed orders?

• Ranjit Lala: Well, I think we should hold on right now.

• Amritanshu Khaitan: We have disclosed, Ranjit, I think a few days ago only about Rs 30 crore crores of orders.

• Sachin Vijayakar: ₹30 crores we have disclosed. That is only of Kilburn we have disclosed.

• Ranjit Lala: That's on Kilburn we have disclosed. Yeah.

• Tejash Thakkar: Okay.

Amritanshu Khaitan: As and when any large orders come, the company discloses it.

Tejash Thakkar: Yeah. Got it. Thank you.

Moderator: Thank you, Tejash. We'll take the next question from Priyanka. Priyanka, you can go ahead.

Priyanka Patel: We are entering a nuclear power segment. So how much order books in pipeline from nuclear power segment?

Page 23 of 24

Kilburn Engineering Limited Q4 & FY25 Post Earnings Conference Call May 22, 2025

Amritanshu Khaitan: We have ₹50 crores today, which is there. We believe this will be an important segment in the next four, five years where every year some order should come through.

Moderator:

I think that is the last question for the day. Would the management like to give any closing comments?

Ranjit Lala: Mr. Khaitan, would you like to say something?

Amritanshu Khaitan: No, Ranjit, you can do the closing.

Ranjit Lala:

Yeah. No, I think we are well on track, and we have been getting very good enquiries, some good orders. And as I've mentioned, we do see a 50% growth on the current year. And in the past also, we have mentioned that we will try to optimise the margins, and we will keep guiding you from timeto-time as they improve or if there is any setback or something.

So I think we have been very, very open on how the situation is. So we'll keep you posted. Thank you. Thank you for your time.

Vinay Pandit: Thank you to all the participants for joining on the call, and thank you to the management team. That brings us to the end of today's call. Thank you.

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