Isgec Heavy Engineering Ltd
NSE:ISGEC
Earnings Call Analysis
Q3-2024 Analysis
Isgec Heavy Engineering Ltd
The company has shown a mixed performance with standalone revenue decreasing slightly to INR 1,072 crores in Q3 FY'24 from INR 1,103 crores in Q3 FY'23. However, profit before tax improved by 12%, showcasing better profitability. Over nine months, there was a revenue increase of 3% and a significant 38% jump in profit before tax, highlighting robust growth. Consolidated finances also depicted a similar trend of marginally decreased revenue but with substantial growth in profits before tax by 53%. Furthermore, the company has efficiently managed to reduce its standalone and consolidated net borrowings by 83% and 34%, respectively.
Operationally, the company has hit its stride, operating at full capacity in sugar crushing and refining, and the market has positively received its refined sugar. The ethanol plant, too, is running at full capacity. Amidst this growth, the company is navigating a change in the regulatory environment, reacting to the Indian government's decision to ban sugar exports and restrict ethanol production to ensure domestic sugar availability. In response, the company is investing INR 17 crores from internal accruals to adjust its ethanol production process to comply with the new regulations, ensuring the flexibility to pivot back should the ban be lifted.
With a comfortable orders position of INR 7,500 crores providing visibility for the next 18-19 months and expectations to book more orders, the company is well-poised for steady future growth. The inquiries are coming from diverse sectors, and the company is aligning itself to book a fair share of the upcoming projects, indicating a robust pipeline and confidence in securing future revenue.
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Ladies and gentlemen, good day, and welcome to Q3 FY '24 Earnings Conference Call of Isgec Heavy Engineering Limited Hosted by ICICI Securities. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Mohit Kumar from ICICI Securities. Thank you, and over to you, sir.
Thank you, Muskan. Good evening. On behalf of ICICI Securities, I would like to welcome you all for the Q3 and 9 months FY '24 Earnings Conference Call of Isgec Heavy Engineering Limited. From the management today, we have with us Mr. Aditya Puri, Managing Director; Mr. Kishore Chatnani, Whole Time Director and CFO; and Mr. Sanjay Gulati, Whole Time Director and Head of Manufacturing Units. Without further delay, I would hand over the call to management for brief opening remarks and will follow with by Q&A session. Over to you, sir.
Thank you. Thank you, Mohit ji. Good afternoon, everyone, and thank you for joining us on our earnings conference call. I hope that you and your loved ones are all well and safe. We look forward to facilitating a constructive interaction. Our quarterly and 9-month financial results were published yesterday. We've uploaded our presentation on BSE, NSE and our website, www.isgsec.com. You may also visit our website and follow us on social media platforms for regular updates about the company. The standalone revenue for Q3 FY '24 is INR 1,072 crores compared to INR 1,103 crores in Q3 FY '23. The standalone profit before tax for Q3 FY '24 is INR 60 crores and is 12% higher compared to INR 53 crores for Q3 FY '23. The consolidated revenue of Q3 FY '24 is INR 1,498 crores compared to INR 1,589 crores for Q3 FY '23. The consolidated profit before tax for Q3 FY '24 is 4% higher with INR 89 crores compared to INR 85 crores for Q3 FY '23. In the standalone results, the profitability is better than the manufacturing segment. 9-month financials, the standalone revenue for 9 months FY '24 is INR 3,350 crores compared to INR 3,261 crores for 9 months of FY '23, which is higher by 3%. The standalone profit before tax for 9 months FY '24 is INR 207 crores compared to INR 150 crores for 9 months FY '23, that is higher by 38%. The consolidated revenue for 9 months FY '24 is INR 4,373 crores compared to INR 4,360 crores for 9 months FY '23. The consolidated profit before tax for 9 months FY '24 is INR 252 crores compared to INR 164 crores for 9 months FY '23, that is higher by 53%. The standalone net borrowing as at 31/12/23 is INR 47 crores compared to INR 280 crores as at 31/12/22, that is lower by 83%. The consolidated net borrowing as on 31/12/23 is INR 586 crores compared to INR 886 crores as at 31/12/22, that is lower by 34%. The consolidated order booking for Q3 of FY '24 is INR 1,365 crores compared to INR 1,388 crores for orders booked in Q3 of last year. The order enhanced position is strong. Consolidated orders in hand as on 31st December 2023 is INR 8,584 crores. Of the consolidated order book, 71% is for the project business and 29% is for the manufacturing businesses. The order book includes INR 1,070 crores for International orders, which is about 12%. The order book includes the order book of Isgec Hitachi Zosen, which is very good. It has INR 945 crores of orders as on 31st December 2023. The order book is well diversified across various sectors and customers. The overall demand trend is encouraging and the inquiry position continues to be robust. Export inquiries have also picked up. Saraswati Sugar mills. The sugar factory started crushing operations from 31st October 2023. Manufacturing was refined sugar also started. The plant has been operating at full capacity and our refined sugar has been well accepted in the market. The ethanol plant is also operating at full capacity of 160 KLPD. This year, the all India sugar production is likely to be lower, and therefore, the government has decided not to allow export of sugar from India this season. In order to have more sugar available for domestic consumption, the government has decided to restrict the amount of sugar that can be diverted into ethanol by dialing manufacture of ethanol from sugarcane juice and it has also restricted the amount of ethanol that can be made from the heavy molasses. We have been advised to shift from B-heavy molasses to C-heavy molasses.
We will also be installing some additional plant in machinery in order to enable our plant to produce the heavy molasses. This will require an investment of INR 17 crores, which will be made from internal accruals. The Philippines project. The construction of the Cavite Biofuel Ethanol projects in the Philippines has been completed. Full-scale trial production of ethanol from sugarcane has started from 30th January 2024. Certificate of accreditation has been received from the Department of Energy, Government of Philippines to operate the plant. Commercial production is expected to start later this month. My colleagues and I will be happy to answer any questions.
[Operator Instructions] The first question is from the line of Nikhil Abhyankar from ICICI Securities.
Sir, I just wanted to understand this recent ban that the government has put on using sugarcane juice for producing ethanol. How will it exactly impact overall industry? How long do you think will the government retain such a ban?
So the ban is on using sugarcane juice directly to make ethanol, also from B-heavy. B-heavy means that more ethanol can be produced. The government has done this because sugar prices are going up. Sugar -- the anticipated shortage of sugar and therefore, they wanted cane juice to be -- more cane juice to be used for making sugar larger than ethanol. So also, the government has increased the price of C-heavy ethanol this year by giving an incentive. They have increased I think about [indiscernible]. So we do not know whether this ban is going to continue. How long it's going to continue. It will depend upon sugar planting this year -- sugarcane planting this year and anticipated sugar production for next year. If the sugar production is going to be adequate, they will probably remove this ban so that more ethanol can be produced. Yes?
Yes. And this CapEx of INR 17 crores that you just mentioned to shift it from B- to C-heavy molasses. So basically, can you just elaborate on that? Like what exactly will it do? And how will it help us? Because if we shift to C molasses, will we not be able to revert back to B-heavy once the ban is removed?
No, we'll be able to -- it will be fully flexible. We would make the investment because we don't know when the ban will go. But should the ban be lifted any time and we think that it's more profitable to make with B, there will not be any technical difficulty.
Okay. Understood. Sir, I have a few more questions, but I'll get back in the queue.
The next question is from the line of Abhilasha from Quantum AMC.
So I just wanted to get some color on the order investors. So I mean I've seen the segments where we are operating like [indiscernible] manufacturing sector. There is a lot of activities happening in terms of overall CapEx going up and down. So what is it, like our order inflows have been lackluster during the quarter? How are we seeing the pipeline where -- which are the sectors we are seeing the traction going forward? Can you just give some kind of color over the medium term? How do we see this number moving up?
So orders for us, I am sure you know it as well as I do or even better than I do. For capital goods, orders normally get bluffed. It doesn't -- it's not that every quarter is not uniform. So some orders, there is a lot of inquiries in the market. A lot of orders are under negotiation. So this particular quarter, the orders finalized maybe a little lower but that doesn't reflect anything. Our order position, orders in hand position of INR 7,500 crores is very, very comfortable. We have enough orders in hand for, let's say, next 18, 19 months, and more orders are expected to be booked during the current quarter. So that's only numbers part, but inquiries are there from all the sectors, which we address and for almost -- for all the products that we said that we make. So we don't -- I know you mentioned the word lackluster for this particular quarter, but the order booking for the 9-month period is okay and the orders in hand is good.
Okay. Sir, I'm not asking for any guidance or anything. But I think as things are moving, are we seeing this number to move upwards over a period of time, say, 1 year, 2 years?
Certainly because a lot of investment is happening in India, as you also mentioned. And we expect -- and the inquiry person shows that there are going to be a lot of orders finalized and we hope to book our fair share of orders there.
Okay. And my second question is like, again, on the margin. So quarter-on-quarter, we have seen decline in both the segments in manufacturing as well as EPC, the margin decline. So what is it on account of and how do we see the market? I know that Q4 will be the better quarter. So that is not comparable, but then in terms of, say, FY '25, where do we see these margin numbers heading?
So Q4 is going to be better assets as you rightly surmised. If you notice the work in progress increased in this particular quarter so that's showing that a lot of orders, particularly for the manufacturing segment are under manufacturer and many of them are expected to be dispatched and the venue booked during the current quarter. So margins are going to be looking fine for manufacturing in this quarter. The margins on the EPC segment, yes, it is low 3.5% this quarter. But it is going to catch up to the same number of 4%, 4.5% for this current year. And for the next year, as we have been mentioning earlier, we hope that it will be around 5%, 5.5%.
And sir, for manufacturing, do you want to give any number for the next year?
The idea is the same, 11%, 12%.
The next question is from the line of Deepesh Agarwal from UPAMC.
My first question is if you look at your growth in 9 months, so the growth has been actually is on the EPC plus project division is badly 4% Y-o-Y and at the company level is flat. So how do we think about growth because on the earlier participant also, the order inflow for the year as the 9 months is not exciting, your order inflow is just 3% of your 9 months revenue on these 2 divisions. How should we think about growth for the company?
Sure. The order inflow is -- see the order inflow or the orders that we have taken is also we take into account in the backlog of the orders and what are -- what is the order book that we can comfortably execute. So we many times refuse the orders also. So capital goods, it really does not matter from quarter-to-quarter. Yes, if it was long over 9 months or 10 months is something significant. Sometimes customers delay orders, sometimes we do not want to take orders in 3 months, in 1 quarter or 2 quarter with no indication of the trend. That's point number one.
And point number two is any conscious decision or what we have told earlier also that we are starting on the manufacturing segment, and we are seeing order book rising over there. We assume an increase in trend.
Sir, what is our expectation on growth for manufacturing plus EPC this year and next year?
Normally, we don't mention any particular numbers, particularly for the next year, I mean, this year, 9 months have gone. So we are still hoping to see 8%, 9% growth over the last full year. For the next year, we are hoping for some growth, but we can't mention any particular number.
Sure. Sure. Sir, the other is, can you update on the status of those legacy FGD orders where in the working capital condition to our [indiscernible] margin profile was relatively lower. What is the status that were near completion?
So these long-duration projects like FGD, as we've been telling in every meeting, they are coming to again one by one. And therefore -- and you can see the results reflected in our borrowings, which should come down very sharply from INR 200-odd crores to INR 47 crores.
Sir, this is the other book position of this project?
[Technical Difficulty] Can you repeat the question?
You mentioned that number INR 200 crores has gone down to INR 37-odd crores. This is the outstanding order book or...?
The net borrowing has come down from INR 280 crores to INR 47 crores. That's right. So as Mr. Puri mentioned, these orders, particularly 2 large ones are going to be completed within the year. A number of those milestone payments have been received and the balance are also expected to be received in this year. So our borrowing position is coming down. Our working capital utilization will also come down.
Okay. Sure. The other question is recently there was a press release, you gave some corporate guarantees for the Philippines project. Can you give me some more specifics on this? Why there was a need for giving further guarantees et cetera?
So it's a new business, new company. So obviously, the promoter is in India, even though the business is in Philippines. We have banks where we have lent out term loans. The plant is expected to start this month. So we require working capital for that. And so the banks wanted that the parent company should provide a corporate guarantee to help secure the working captive. That is typically common for new businesses. Even in India, whenever we have joint venture, for example, new business is coming up, new companies coming up. Banks sometimes many of the time -- most of the times, they are for the promoter companies, the parent companies to give some support by the corporate guarantee.
[Operator Instructions] The next question is from the line of Ashwani Sharma from ICICI Securities.
So my first question is on, if you can give us numbers of your subsidiaries, Isgec Hitachi Zosen and Eagle Press, Q3 revenue number and 9-month numbers for both the subsidiaries.
Q3 revenue numbers, okay? If you have any other questions please ask whatever for further information.
The second number is -- the second question is on the retention of money. I'm sure this -- the last quarter, you would have received some retention of money. How much is spending now?
So I mean we don't look for that number in that session. But there is retention money in our overall what is called retention money. It can be a milestone money or it can be a retention money. So that is close to about INR 1,000 crores out of all our receivables.
And any timeline that you'll be able to receive this money?
So it is -- for each project, there's a different timeline. But for those long-duration projects, which we were talking about earlier about the FGD. So there's about INR 400 crores, which will come out this year. The timeline will be coming out from the other projects as well.
So INR 400 crores will come in FY '24 itself, yes?
This year means in the next 12 months.
Okay. Next 12 months. Yes.
On the revenue for Isgec Hitachi Zosen this quarter, it is INR 208 crores. And for the 9 months ended December, it is INR 395 crores. And you want it for Eagle Press as well, is it?
Yes, yes.
So Eagle Press this quarter, it's INR 12 crores. And for the 9 months ended December, it is INR 39 crores.
Sir, also, if you could talk about how is the business in our outlook on in these -- for these 2 other companies, both Hitachi and Eagle Press. How's the inquiry level? How is the outlook going forward?
Finally in this business is concerned, Isgec Hitachi Zosen, as I mentioned in my opening remarks, has a very good order book at this point in time. The prospects are also very good, and we expect much better performance of Isgec Hitachi Zosen. As far as Eagle Press's are concerned, because of various reasons, the order booking has not been very good, but the financial year will end with -- would still end with -- will be positive -- will end with a profit. The order book as of now is a little bit of a concern there. We expect to book some good orders in the next few months. But in the last few months, the order booking has not been very good in Eagle.
Okay. Sir, as far as your overall order inflow did eluded to be in a large inquiry level. But then is there a challenge in terms of orders getting conversion -- conversions are not happening? Is there a challenge at the company level that you are facing?
So in certain sectors where people were to make big investments, there is not a challenge, but sometimes decisions do get deferred. But as I said, it's just -- it's one quarter. So one order that you don't take or one order that you were expecting get deferred based on the difference to the order bookings. So yes, I agree that the order booking has been lower but it is no significant concern.
The next question is from the line of Amit Anwani from PL Capital.
My question is with respect to the current composition, I can see in the order book, refinery is roughly about 28% and that can and chemical is about 16%. So collectively, 45% of the book is from these 2 large sectors. In what sense do you get there is a moderation of large orders getting tendered out and refinery that can at least for the next 12, 18 months. So just wanted to understand your sense with respect to, if you could also highlight the pipeline and composition. So we are hearing from other players that the power utility and coal thermal orders will be coming in a business on the large side. So just wanted to understand the strong area where there's a pipeline emerging. And any retailer you did highlight ethanol seeing a near-term challenge. I just wanted to understand the overall outlook on the intake side.
So the sector of refineries as we supply pressure vessels to them. We supply boilers to them. These are the 2 main equipment that we supply. And these equipments are also supplied to fertilizer plants in petrochemicals, which are, I would say, adjacencies to refineries. And as of now, last quarter, in this quarter, the order booking from this sector and the chemical sector for us has been pretty decent.
And there are still -- there are orders in the pipeline. And I think what you're talking about is specific to India, but there is some investment also happening abroad where we supply our pressure vessels and from where we are getting orders. .
Right. Any color you want to give on inquiry for 9 months versus last 9 months? Any double-digit heighten? How is the growth for inquiries overall?
The inquiry position is good. We don't have any dearth of inquiries. And we are not trying to compare last year versus this year because seriousness of the inquiry, what's the budget inquiry, what inquiry for immediate conclusion that differs at different points of time. But we have enough inquiries for all the business that we need.
Right. My next question is on the sugar ethanol side. Obviously, because of the prevailing reasons, we saw the decline. So what is the expectation now for full Q1?
Pardon me, sugar and ethanol?
Yes..
Yes. Okay. So sugar this particular quarter, the revenue was less compared to the December 2022 quarter. Now in December 2022 quarters, there was export was allowed from India. The sale, of course, there's no export. And the allocation of quota -- sugar quota to be released by the government for our factory was higher in the last year, the same quarter. This year, it was lesser. So obviously, government decides that based on demand and supply, their assessment of demand and supply and the particular stock position of the mills. So this year, the decline in revenue for sugar is largely because of the lower quota that was allocated and no exports allowed this year. But -- so the next quarter is also going to be similar. Again, in this quarter, there will be no export, but the domestic quota likely to be normal as it was last year. For the ethanol itself. So as Mr. Puri explain a while earlier, we have been making ethanol from B-heavy molasses. So this change in policy came in the middle of the season. So while we produced, the full production went on at full scale. The amount of ethanol allocated to the oil refineries for this quarter was 65% of normal. So because the government allowed us to sell less of that ethanol, so revenue on ethanol is less. That is going to continue for some time for B-heavy until we shift to C and then for the season as a whole, then the values will be similar, the quantum of ethanol that we make will be the same as for the last year, last season. So we'll catch it up by the time the season finishes in May, we will catch that up.
Sure, sir. My next question is on the recent notifications on coal gasification. So any sense I am assuming that it will also be requiring heat exchangers and [indiscernible] plants? Any sense are we also tapping that market? And is it revenue that we get some order on coal gasification?
We are very quick to make pressure basis with heat exchanges for coal gasification. So as it went -- when there are orders in the markets, we'll certainly be bidding for them.
Sure. Lastly, on the EPC margin, which is keeping 3% to 4%. Just wanted to understand what is the business model you are following that the margins are so low and any ramp-up maybe in medium term and to what level it can go if the things go right for you in EPC?
As Mr. Chatnani just explained that this year, the margins are going to remain roughly in this range. But next year, we are expecting the over margin in the 5%, 5.5% range.
But sir, to what level it can go, so there is a maximum we can achieve is it?
I think for the next year, yes.
The next question is from the line of Nikhil Abhyankar from ICICI Securities.
So we have started this event biofuel -- we have started production over there. So can you just elaborate on what kind of plans do we have? And are we looking at monetizing part or full stake in this project?
So trial production has started. So we had mentioned earlier that we had done trials on molasses earlier. Now the plant has been completed. The trial on sugarcane, which is the feedstock. This is a season for sugarcane. So trial production on that has started. Commercial production is yet to start. We are hoping that we can start it by the end of this month. And regarding monetization at the moment, we are planning to run the plant, run the business, there's no other plan at the moment.
But maybe in the medium term, we will look at this like monetizing it?
Certainly, the idea is not to really run it for a very long time. So whenever we get a decent price, we way of exit, we will want to use it.
Okay. And sir, previously, you also mentioned about the FGD opportunity. So can you elaborate on that? Like what kind of opportunity do you envisage in the next couple of years? And how aggressively will be participated in this opportunity?
So as far as FGD opportunities are concerned, there will be FGD opportunities that will come up. But we are very clear that we will take on an order only at a very decent margin. And those projects, which had a decent cash flow. So if you are going to ask me are you going to book any FGD orders in the next 3 months or so. There are inquiries in the market, but we are able to be -- we have enough orders, we will be firm in our stand as far as margins and cash flows are concerned.
Understood. And sir, the next question is about coal gasification. So basically, currently, only [indiscernible] is doing a project of around 0.4 million tonnes. And so how will it exactly happen? I wanted to understand that because we will be rolling out the project to PMC contractor. So will we be directly talking to [indiscernible] for the order? Or will we tie up with the EPC contractor?
No, we will -- so we sort of the businesses with EPC contractor may -- may give the final order, but it has to -- the equipment specifications are given by the process licenses. So it is rooted through the EPC company and through the PMC. But ultimately, the licensing has to approve us, which we have no doubt that they will and then the EPC company sort of gives out tenders and not either tenders or flows inquiries. And the order either has to [indiscernible]. So we basically, as a company, have to approach all. So we have to be enlisted with the licenses for our 2 big for the equipment.
So we work with the customer, the licenses, the PMC as well as the EPC. Okay. Understood. Yes. And you also mentioned about the refining segment opportunity. So I want to understand, say, for greenfield or brownfield expansion of 5 million tonnes, what exactly will be our opportunity size in it?
Aditya, would you like to take this?
I won't have an exact number. Yes, but 6 million tonne refinery, which comes up would almost keep our that is it would be enough of opportunity for [indiscernible] and manage to be booked for the whole year.
Next question is from the line of Deepesh Agarwal from UTI AMC.
Sir, there is a lot of opportunity on the CBG size compared to biogas. So given we were already there in ethanol, are we looking opportunities out there from our machinery or EPC division?
Yes. We are evaluating.
Do we have the technology with us?
Yes, we are talking to some people for technology and we have some bit of technology. And so we will be able to put the package together.
Okay. And so far, we have not tied up with anyone on the hydrogen side because we had an aspiration even out there.
No, we are not tied up with anyone on hydrogen side. We're looking for opportunities but the point is that market and the technology is also changing very rapidly. So we don't want to sort of commit down knowing, which technology is going to sell and which technology is going to be stable.
So we are not into the production of hydrogen, but the subsequent like green ammonia storage of the hydrogen. These are the areas that we are already in. So equipment for that -- yes, the equipment for that. Yes.
Any sense typically in a hydrogen plant, what would be our share of opportunity on our total CapEx?
It varies between how the person is planning to use his hydrogen. If he is planning to store hydrogen, there would be a large number of hydrogen bullets coming up. If you are planning to convert into ammonia. So it varies a lot depending on project-to-project substance. But in any case, any green ammonia plant coming up or any hydrogen will be coming up or need our equipment?
So far, we have not taken any order on this side, right?
We have done green ammonia. We are supplied for [indiscernible] blue ammonia so far, not green ammonia exactly, but we supplied for blue ammonia plant. We are currently executing all this for blue ammonia plants. We are bidding for number of green ammonia plants as well overseas. Equipment for overseas, yes equipment for green ammonia and blue ammonia plants.
Sir, the other question is, we are seeing a strong thermal CapEx cycle at utility scaling the country. So if you check, do we are operating more on the CapEx side, do we benefit out of this larger thermal CapEx cycle by selling some of our components, et cetera?
Yes. Yes, we do because we manufacture casting for those turbines. And we could look actually also do material handling for these large projects. And so the large big projects are typically done by [indiscernible] and if their shops are full, they may give us some orders for [indiscernible].
Sir, last question from my side. So on the oil and gas side, some of the earlier participant also asked, there is a strong CapEx happening in Middle East. So do we have a sufficient tie-ups, et cetera with the EPC players out there to benefit from this opportunity because we have not seen this oiling gas order book or numbers for us actually growing very well.
Sanjay, would you like to answer that?
So we are participating in the bridge to oil and gas in the Middle East. Recently we were awarded one UAE project, but that's come in this quarter. So we are into the -- we are on the vendor list of most of the majors like ADNOC and Qatar Gas and...
We are on this.
We are on the vendor list of most of the companies in Middle East. So we do receive inquiries from the EPC and so on.
[Operator Instructions] The next question is from the line of Manish Goyal from Thinq Wise Wealth Financials.
I have couple of questions. Sir on Hitachi JV side, you did mention the revenues and a very strong order book. If you can also share what were the margins in the Hitachi JV. And going forward, can we expect that the JV margins also to be in line with the manufacturing margins of 10% to 11%.
So the margins may not be 10% to 11%, but they will be substantially better than what the JV is ensuring the margins that there is, the margin would be better for JV.
Okay. So maybe what was it in first 9 months, sir?
First 9 months, it's not the figure is not margin, but profit before tax, which I only have. Profit before tax is about INR 19 crores on a revenue of INR 395 crores.
Okay. Okay. As compared to last year, 9 months?
Last year, 9 months, it was [indiscernible] so it's much better than last year.
Sure. Definitely. Okay. Okay. And right now, what I see is that the order book outstanding has increased in exports and Hitachi order book has increased. So should we imply that a lot of orders was Hitachi has got are from International? Or maybe if you can give us a breakup of Hitachi heavy order book of [indiscernible] gone up quite well.
I don't have that readily. I mean how much is book, maybe Sanjay. Sanjay if you remember I think you speak out.
Not exactly, but it's close to 50-50 that is half of the orders are from domestic and half of them from overseas.
[indiscernible].
[indiscernible].
The pending order book?
That's right. That's right.
Okay. Okay. Also, sir, if you can share about now the Philippines plant is completely ready and up for running. Maybe if you can share what is now total investment into that plant, both in terms of equity and debt, how do we see revenues and profits in FY '25 because now we will capitalize the plant, so we'll have impact in interest and depreciation. So if you can do some indication sir?
We have mentioned the numbers earlier. I don't have them readily. But the plant is expected to start commercial production by the end of this month. Rather than we nearly capitalized and we will have the exact numbers. I do have the exact numbers now.
Right, sir. Okay. So no, I just want to get a sense that for next year once this plant is running in full production. Hopefully, once it starts, it will be probably at skilled production. So next full year, we can see full production and it will probably not have any negative impacts on the PBT level. That is what I'm trying to get assess sir.
It will not have a negative impact on the PBT level. That is for sure.
[Operator Instructions] If there are no further questions, I would now like to hand the conference over to the management for closing comments.
Thank you. Thank you very much, and we look forward to meeting you again after the March year end results are out. Thank you, and all the best.
Thank you. On behalf of ICICI Securities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.