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Anup Engineering Ltd
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Ladies and gentlemen, good day, and welcome to the conference call for analysts and investors to discuss the financial results and performance for the quarter ended 30th June 2021 of The Anup Engineering Limited. [Operator Instructions] Please note that this conference is being recorded.I now hand the conference over to Mr. Bhavesh Shah. Thank you, and over to you, sir.
Thank you. Good afternoon, everybody. Thanks for participating in the call. Hope you have all gone through the press release and the presentation for Q1 posted in the exchange.I'm joined with our Chief Executive Officer, Mr. Rishi Roop Kapoor; and Chief Compliance Officer, Chintan Patel from our side. As you would be aware, Anup Engineering is company, have global presence in heavy engineering business since 1962. Caters to wide range of process equipment included in oil & gas, petrochemicals, LNG, fertilizers and pharmaceuticals, with extensive product range of heat exchangers, reactors, pressure vessels, columns and towers, and industrial centrifuges and formed components.Now I will run through the financials for this quarter.
Sorry to interrupt. Sir, this is the operator. Sir, we are not able to hear you clearly.
Yes. I'll just keep it muted. Now it's better?
Much better, sir. Thank you.
Yes. So I'll run through the financials for the coming quarter. We filed second year -- we had a best Q1 ever in the coming quarter. The revenues from the operations was INR 52 crores against INR 30 crores in last year Q1 FY '21, up by 72%.The EBITDA margin is at 24%. PAT is at INR 8.1 crores against INR 5.2 crores in last year's Q1 FY '21, up by 55%. We are having a very strong order book position as of the end June, was nearly INR 300 crores. And happy to tell that since beginning of Q1 till date, we did orders of INR 51 crores till date, which gives us very good visibility for the coming quarters.
Since 1st of July.
Since 1st of July, yes. Our liquidity position is very strong. We had a fixed deposit balance of INR 52 crores -- INR 52.5 crores as on June 10. Other information is available in the presentation. And now we will start with the question-answer session. Thank you.
[Operator Instructions] The first question is from the line of Kaushal Shah from Dhanki Securities.
Congratulations for the good set of numbers. I have 2 questions. One was if you can share some updates regarding the Odhav plant. I believe the clean room, there was delayed due to the COVID second wave. Also an update on the Kheda construction. And if you can kind of share some more color on the order inflows that we've had, which are the key sectors, so to say. And do we stick to this, if I'm not mistaken, in the Q4 call, we were expecting inflows of around INR 300 crores or INR 330 crores for the current year, '21/'22. So do we maintain that same inflow target? Or do we want to revise it upwards?
This is Rishi here. And first of all, to begin with, let me begin with by answering your -- the last question that you have. That's regarding the order book. So we indeed had a good run in booking the orders since the 1st of April. Since the year opened, we have gone ahead and booked almost about INR 150 crores already there on the -- it's already booked. So which is -- you can say one of the best run rates that we have had in terms of order booking. And we are pretty much on track with the initial indications that we had given, the expectations about 15 orders to the tune of about INR 330 crores, INR 350 crores in the current year. So that's very much on. Because we've had a very good start. And the order -- the inquiry pipeline is continuing to be very robust and very strong, both from international as well as domestic markets. So that's one part of the question.Of course, the second is an update on the CapEx progress we have. So the clean room project, yes, a bit taken back in the second wave of COVID. We really have to -- like, we were just pulled back by almost 2 months. But since, I think, beginning of June, we have been able to gather momentum in the progress that we are going to make -- that we are making in this project. And we are certain that we will be able to complete the project in the month of September, anywhere between 15th to 30th of September, the whole paid, including the clean room, is added to the commission.
Good. Regarding the Kheda plant, sir, we were expecting regulatory approvals and...
The Kheda plant also, the regulatory approvals are very much in pace. And the work shift, we are targeting -- currently in the process of renewing the contracts, renegotiating the contracts, which we had already placed in the last year before the COVID struck. So those contracts are going to be renewed. We're going to renegotiate those contracts. That's the process which has already started. We intend to begin the first set of construction in this quarter, in the current quarter, in Q2.
Right, right. And sir, this significant order inflow momentum that you've seen, if you can maybe throw a little more color on which are the sectors that we are seeing a lot of traction or activity? And how do you see the forthcoming, let's say, the next 4 or maybe 6 quarters ahead?
So like we had mentioned in the past also, that primarily the order book continues to be from our conventional sector, which is refining downstream, oil and gas. But that's maybe to the extent of about 68%. However, some very good progress. We have been able to make significant progress in other sectors, for example, chemicals. Then we are looking to make good progress in the power sector. And we have been able to...
Hello?
Yes. So the chemical sector contributes about 12%. The power sector is about 2%. Though, it's not really a very high proportion as of now, but it's a good industry. It's a new revenue stream that has been opened up. We've made some good breakthroughs with some of the global leaders in this sector.And of course, fertilizer will continue to provide us with more opportunities. So happy to state then that, so we are making progress in other sectors other than the conventional refining sector. So almost about 32% is coming now from non-refining sectors. So that's a great sign for us.
Sure. That's great to hear...
And the momentum of the inquiries is -- I do not seek any better than that. In fact, we are getting better choices because as we are going forward, we are improving our product mix. We are getting better approvals. We are getting -- our track record is becoming better than before, and it is a [ good aboard ] for us on new product mix, new product categories, new customers. So it's pretty, kind of, the expected market for us is going to be also in the future.
That's great to hear, sir. Just one final question from my side before I come back in the queue. On the gross margin side, I think you had said in the past that we will maintain this 47% kind of range. So given the price pressure that is coming across the board, virtually for all companies, do we expect to kind of maintain this range given that you're saying that the inquiries continue to be very strong, the order bookings are very strong. So are we able to kind of get orders at decent margins? Or we've had to do a little bit of compromise there?
No, I think we have already mentioned, I think, when we announced the last financial year results. I think we must maintain the same margins. There will be a hit of a couple of percentage points. Instead of 25%, 26% that we have been consistently showing on EBITDA, maybe it could come down to about 23%, 24%, but that's about it. And we are confident of sustaining this.
[Operator Instructions] The next question is from the line of Tapan Karnik from Habrok Capital. [Operator Instructions] As there is no response from the current participant, we will move on to the next. That is from the line of Ravi Naredi from Naredi Investments. [Operator Instructions] As there is no response from the current participant, we'll move on to the next. That is from the line of Hardik Jain from White Stone Advisors Pvt. Ltd.
Sir, just wanted to understand with the kind of a good order book -- order intake that we are getting, I just wanted to understand the heat exchanger and the vessel, the major products that we make, does it generally go into a new greenfield or brownfield expansion? Or does it also go to an existing plant where they want to enhance their efficiency and capture the heat that they are losing? So does it go even in the existing plants? Or it generally goes to the new CapEx?
No, most definitely, it also is required in an existing plant as well. Because the equipment which are already installed where they are, they will reach periodical distance. So definitely, a shutdown and replacement is a major business segment for us.
Okay. So just please excuse my ignorance because I'm new to this company. So heat exchanger is basically a product which helps a company to capture the heat and use it to generate some kind of energy, is it?
So it is one of the wide range of process equipment. You can say that it's one of the most widely used process equipment in the whole range. If you see our presentation as well, you will find other product categories, other process equipment categories like vessels and towers and reactors.And yes, primarily the function of a heat exchanger is to transfer the heat from one medium to another. That's the primary function. And it will be used in widely -- wide-ranging applications in any process plant. So it finds application across industry sectors.
Yes. So our target customers will not just be the ones who are looking for a new expansion or new CapEx, but will also be existing plants where they need to enhance their efficiencies?
Most definitely.
The next question is from the line of Chetan Vora from Abakkus.
First, I wanted to ask about how the demand environment looking like?
Chetan, could you be a little louder?
Yes. Is it clear now?
Yes.
Yes. So I was asking, how the demand environment looks like, sir?
Of the -- pardon, Chetan, can you be more elaborate?
I was asking how the demand environment is looking like post this COVID 2 getting -- going away.
Yes, Chetan, maybe you joined a little late, that we just discussed about it that the market -- the demand continues to be quite strong. And we have had one of the best runs in the last maybe 45 days, 50 days since the time in this new financial year. And we have booked close to the extent of about INR 150 crores of orders that have already been booked. So we see that will continue in the coming quarters.
And this INR 150 crores will be including the INR 50 crores order, what you got post June also?
Yes.
Okay.
[ I'd intend it. ]
Yes. And in terms of margins, did I hear it correctly that you said that for the full year, it could be in the range of 24%, is it right?
Yes. The EBITDA would be in the region of about 24% is what we have stated.
Okay. Because I was just looking at our annual margins have been in the range of like, close to the range of like 26% to 28%. So I was just looking on the fall, why this 24%. So what is impacting us? If we are seeing a growth, and there would be a better utilization of capacity, then why the margins would fall down to 24%?
Yes. So you see a lot of contracts, lot of orders that we had booked in at the time when the steel prices were at a decreased level. And there were some orders where we had to -- because we had to take that change in the pricing, [ had to decide the cause -- the -- ] pricing the raw material did have an impact.So -- but then the latest orders are all as per the current scenario and the high rates, so that should offset. This is what we are expecting in the year. It should not go below this. So that's how it -- maybe we need to create it like this.
Okay. So basically the recent orders, what you bidded would be higher than the 26% margin, is what you are saying?
So overall, in the year, it should be anywhere between 24% to 26%, is what we're saying.
We'll move on to the next question. That is from the line of [ Varun Seth ], an investor.
Congratulations on the good set of numbers, sir. So basically, my question is on the Kheda, which I understand that you soon will be starting in this quarter itself. And based on previous interactions, what I understand that you are supposed to start once the COVID situation settles down, once monsoon settles down, so maybe post October. And now we are heading a bit to quarter 2. So are we seeing more robust demand or the demand scenario has changed? Or why we are preponing the CapEx, if you can throw some light on that?
So, I think we are -- now, I think the position is more clear to us. The impact of COVID, even the second wave has sort of got lost as people and society has [indiscernible]. We have been rigorously pursuing rationalization of our -- the workforce that we have here, both white collars and blue collars. We have made some very good progress there. So that's about it.And we are targeting to -- I mean, we always mentioned that we will begin the construction some time in the month of October, but we see an opportunity to prepone it to the previous month. And we've already taken a head start on that. So we are in the process of renewing of the contract. We plan to begin the construction at this time, without wasting any more -- further days in Kheda.
Sure, sir. So considering the preponement and considering the robust demand outlook in the order book, which we are booking, how do we now see our INR 1,000-crore revenue target, which, of course, was delayed because of COVID? So now when do we expect to reach INR 500-crore level?
So like I said, we have been talking about the key drivers of this -- towards this target are going to be the CapEx that we are doing, the market expansion that we are doing, the technological collaborations that we are doing. And Kheda is one of the biggest, you can say, building blocks for achieving this number. And that's also one of the reasons why we would like to accelerate Kheda, especially the first phase we want to accelerate and get closer to our target as early as possible. We are still expecting that is about FY '25 is the target that we have taken, achieving our INR 1,000-crore number.
Okay, okay. And sir, last question is on the clean room, so which I understand is basically will entail you to have higher value kind of orders, which have a higher margin at the end of the day, getting started somewhere in September. So in H2, how does it impact in our overall revenue stream because of clean room in terms of revenue and in terms of overall margins? And going forward, if you can throw some light on that, sir?
So in the initial H2, we are likely to commission this by the end of H1. And H2, you will not see an impact there. But yes, the following half, that is the first of next financial year where is the impact, because we will be booking the orders at that time. And in the second half, maybe we will be utilizing the clean room as any other day to begin there. So we're not going to wait for the exotic emerging orders, but those orders been at utilized in the second half of this financial year. They will be executed in the first half of next year.
The next question is from the line of Aman Vij from Astute Investment Management.
My first question is on the client additions side. Could you talk about what is our client number, just number of clients as of, say, June quarter? And how many do you plan to add in the year?
So, flat. Number of customers.
Number of new customers.
Yes.
Yes, yes, yes.
Is that your question, please. Can you please repeat, Aman?
Yes. My question is, listen, number of customers we have as of today, and how many we added in the last 1 year?
So new customer addition has been muted in the last 12 to 16 months only because of COVID. However, if I were to give a list of those numbers, maybe the new customers that have been added to our client list would be close to about 20, 25.
And what is our base of customers as of, say, today?
What is what?
Total number of customers we have as of today?
The number of customers is mainly run mostly about -- maybe it would be close to about 70, 75.
Sure, sir. My second question is, post the Odhav CapEx, what will be our capacity? So basically, what kind of sales can we achieve? And similarly, for the short phase of Kheda CapEx, when it will get over, and what kind of peak sales can we achieve?
So we are primarily -- we have 2 units that -- in our plan to achieve the INR 1,000-crore target, revenue target. Out of which INR 500 crores going to be -- INR 500 crores to INR 600 crores is going to be contributed by Odhav, which is where we currently operate from, and which is currently, actually, the only functional facility that we have. So this contribution come from Odhav, and the remaining is going to come from Kheda, and that is going to be divided in 3 phases. The first phase, as I mentioned, is likely to begin in the -- by the end of this quarter. And it should take about 6 to 7 months to be commissioned. So that will add maybe about INR 100 crores, INR 150 crores of revenue to the top line in the following period. And similarly, it is going to be followed by a couple -- 2 more phases of construction in Kheda. And the completion of Kheda, the 3 phases is going to happen, 1 phase each year. So the next phase is going to be planned in the next year, by the end of third year or the fourth year -- the first year.
And so to utilize it specialty phase-wise. So first phase, say, gets over in 6, 7 months. So by what time do you expect one single safety, full capacity we can get like let's say, one year after commercialization, or is it going to take time?
Vij, no, no, it should be anywhere between 6 to 12 months. Because we are already -- we are not in the sale, the Kheda is [ going to produce ] similar kind of equipment, what we have already registered with a lot of companies. However, in some of the public sector companies, the registration process for a new unit will take about 2 to 3 months or in some cases will be like 4 months or 5 months.
Right, sir. And on the Odhav side, do we require any more premium or -- to reach that INR 500 crores, INR 600 crores?
No, I think we have -- this is going to be the final piece of CapEx that we will be doing there. That is going to cap the complete CapEx. The major capital will be capped here, no doubt, with this [ payment. ]
When do you think we can utilize this facility fully?
Beginning next financial year.
So you are saying, say, FY '23, we can see around INR 500 crore sales from Odhav capacity itself?
Yes. So there's going to be obviously some lag in that because the field movement is going to be established. The product range is going to be established. The first few orders we can be executing. So it will achieve INR 100 crores or this addition INR 150 crores is going to happen over 2 years. So by FY '23, '24, it means we have -- Odhav should be delivering about the INR 500-plus crore [ exactly ] for FY '24.
That helps. The final question is on your export, the order book trend. So in the slide on Page 17, you have given new trend, and we have been following this company for some time. So sir, this number used to always be around INR 350 crores plus. And even last year, June quarter, which was much more in terms of restriction, it was much more severe. The order book was much higher. So could you talk about that? And on export side, specifically. So we used to have like almost INR 100 crores of order book from exports, while this year compared to March '21, it has increased, but it is still lower than what was...
I thing no particular reason as such. Maybe COVID is one of the reasons why a lot of projects we are seeing some delays because Europe -- a major part of Europe, as you know, are still affected. So it could be that is the one reason. But one thing you must keep in perspective is that last year, on 1st April 2020, the order book was INR 267 crores. And that [indiscernible], we have -- we booked about INR 110 crores of new orders. Whereas in this case, in the current financial year, we have booked close to INR 150 crores since 1st of April 2021.
Yes, sir. So when do we expect to cross that INR 400 crores barrier, because...
I think we have a good chance. We have a good chance of achieving higher, certainly all-time high order book in this year -- in the current year.
Okay. So in coming 2, 3 quarters, you expect to cross that barrier of...
Yes, yes.
[Operator Instructions] The next question is from the line of [ Shivan MS ] from JHP Securities.
A couple of questions from me. One is on the product mix change that we've been speaking about. So if you could give a more detailed understanding on how our product mix is changing and is going to be changing over the next couple of years and forward in terms of the capabilities that we are building in-house, any technological collaboration that would be needed. And how that would affect our industry standing and in terms of getting better orders and making our order book more holistic than what it is currently. If you could give some color on that, and how our margins would change due to that?
Yes. So firstly, in Odhav facility, we will continue to have similar kind of product mix between [indiscernible]. But considering that our Kheda facility will be a heavy build, we will be able to produce vessels, heavy vessels as well as long towers [indiscernible]. So Kheda coming in -- onboard, we will have books -- books more balanced since Odhav is a facility -- it's more complex facility. It is more logical right now for -- to put in more [indiscernible], and that's how we are changing our outlook. But going forward, we will be seeing Kheda coming up. We'll be seeing this more balanced. As far as technological operation is concerned, we have continued to -- we have already tool called technical collaborations. And we are continuing to pursue it further to build up more niche in our market uptake. And your last question?
Margins.
Yes. So margins, per se. I mean it is not only depending on the product mix. But yes, we are seeing -- as of now, we are seeing that in most of the product mix, we keep the benchmark hurdle rate within our head of sale. But it also depends on the lot of complexity or the engineering expertise, which can be different across the product chain. So it is more dependent on the complexity of each product, whether that [indiscernible] product [indiscernible]. On an average deal, the set -- the margins are between 24% to 26% going forward.
Correct. So sir, just taking this forward, I was looking at more from an application perspective. So currently, if you could give some color on what is the current application. So just pardon me, if I -- my understanding is a little less currently, I'm just new to the company. So if you could just give some idea out there, what are the current applications, where our products are being used, and how is that application going to broaden over the next few years? Is there a particular chance of that happening?
Yes. So the product mix which we are taking goes across the industry segments. Just currently with we being more into heat exchanger, [indiscernible] like [indiscernible] more refining, but you see -- if you get along our clean room from next quarter onwards, there will be more going into the chemical and pharma sector also, which consumes this exotic machinery. And also, we are looking at the product mix coming in from paper and pulp business, which is also a one big segment, which we are already presenting to, which will expand going forward. Also then there are newer segments which will come up like coal gasification and everything which we are pursuing, although we were not -- we're still figuring to work out [indiscernible].So going forward, I think just to add to what Bhavesh just mentioned, chemical sector is one of the sectors where we will be making inroads. There is also going to be national gas and gas plants, where we already had a significant presence. And we need to perhaps take that forward in the coming quarters and months and years. Apart from that, fertilizers is going to figure prominently.
Okay, okay. Got it, sir. And sir, my second question is on the revenue ramp-up that we are targeting. So this is -- so if I can -- if you can just give some color that this is fresh demand which is going to be generated within the industry in the various sectors that we are catering to? Or this would be more of a market share gain from some other competitors? If you could give some color here?
It will be a mix of both because we are getting around. And obviously, to that extent, we are doing a lot of things that these are better being done earlier by our competitor -- some of our competitors. So we are getting ground as far as that is concerned, but also the opportunity size is, frankly, increasing. So it's a mix of both.
Okay, okay. But it would be more towards the CapEx cycle coming and setting into the country, that will be a good understanding?
Maybe I would put it like this that we are -- we have been able to find newer areas where we can do a lot more for our customers. And we are giving them now options, as a manufacturing option, which is much more viable than some of our other competitors. So I think that gains precedence over this other reason that we mentioned.
We'll move on to the next question. That is from the line of Ankit Babel from Subhkam Ventures.
A couple of questions. Sir, you just mentioned that by FY '24, the revenue contribution from your Odhav facility would be around INR 500 crores, INR 600 crores. So by then, what kind of contribution we can expect from the Kheda facility?
So I would think it anywhere between INR 200 crores to INR 300 crores. Because by that time, [indiscernible] Kheda will definitely be commissioned.
So it's fair to assume that in FY '24 is all -- barring any unforeseen circumstance, the company can do a revenue of around INR 700 crores to INR 800 crores, is what the target is?
Revenue of INR 700 to INR 800?
Crores.
Yes, yes.
Okay, okay.
We focus on -- that's the whole reason why Kheda is going to come up. That's the reason.
And sir, this Phase 1 of Kheda, which would be starting construction in September, October. So what kind of CapEx you are planning to incur in the first phase?
Yes. So we are [ some closure on INR 35 crores, ] which will also include the rest of the facility. So the CapEx -- after the cost, CapEx would be -- that can be slightly lesser. So even we include the pipe development cost.
Okay. Then it means that the CapEx for Phase 2 and Phase 3 would be relatively lower?
Yes. That is what we should expect, yes.
What it could...
[indiscernible] will cover more number of days of, Phase 2 and Phase 3 are going to have more number of work days. Yes, that it may [indiscernible], yes.
And the revenue potential of each phase would be around INR 150 crores, right?
[indiscernible]
The revenue potential of each phase would be around INR 150 crores, right?
Yes, yes, definitely as a minimum. The plant is going to be designed to be taking up further beyond FY '25.
And sir, my last question then is that this -- the Kheda plant, what I understand is that it will be technologically better than the existing Odhav plant. And if I'm correct, in the past, you have mentioned that the ticket size of orders would also increase once the Kheda capacity is on sale. So if you look at the ticket size also improve? And do you see the orders you're bidding in the next 12 months?
Yes. So ticket size is definitely increased since we are going to build up, it will have a higher capacity. It would have a bigger [ standard ] day. Technological capabilities, we will use the technology for both the [indiscernible]. Kheda, obviously, will have the most volume circulation. Kheda, we are targeting Kheda to be the best fabrication facility as far as India is concerned. So that's how the aim that we have taken, and it is definitely going to be with the best efficacy, best of plant and machinery, best of layouts. So to that extent, I think definitely, Kheda will be our benchmark in this sense.
Okay. And sir, any risk to all these estimates, barring any unfortunate circumstances? Any other risks you're foreseeing?
Your voice is not very clear, could you please repeat the question?
Is there any risk which you foresee to achieve all these things? I mean barring any unforeseen circumstances?
No risks as such. Of course, in the [indiscernible] situation we are dealing, we don't know how it's going to pan out in the coming quarter. We are anticipating that with a high rate of vaccinization that we will be able to improve. And it will [indiscernible] like it did in the second wave. But barring that, I think we have a market size which is available. We have a large opportunity available to us. We have a very good track record. We have very good word of mouth amongst our customers. We have repeat customers and continuing to grow. We are adding, at the same time, newer customers. So I think barring any unforeseen circumstances, no risks at this time which we are able to anticipate.
We'll move on to the next question. That is from the line of [ Bipen Seth ] from Crystal Investment Advisors LLP.
Okay. So I have a question on the apparent change in margins that it happened in this quarter, and it's not related to just this quarter. But as we move forward, how do -- which reflect on the strength and the franchise of the business. I would have expected that the new run method typically less than 1 year, then you can book commodities pretty much through forwards. And to that extent, we are reasonably insulated from changes in steel prices because the minute the orders come in, you will [ counter quote, ] and you go on that basis. So the 200, 300 bps loss, I think it's more than that in gross margins. Is it little worrying? I'm not sure whether it's because of product mix change or whether it indicates the fact that we really have to really, really go by what commodity prices impose on us. That's my first part. And I'll ask you my second question later.
Yes. I think the -- see, what happens is that in the current situation, the option to get the best in the kind of prices that we were getting earlier has become very limited. To that extent, the supply chain itself is constrained. And it's not only the -- we are in the business of buying steel, which is a specialized steel. It's not really following the kind of -- it does have definitely a large impact of the steel price considering that, but it has always been a challenge for us. So yes, we do book orders at the time when we -- as soon as we receive the orders, and that's what we try to do. But a lot of times, what happens is that the -- especially in the last few months since the pandemic has hit us, is that there is an engineering cycle which had got prolonged because once we receive the order, there is a 4 weeks of engineering, which is involved, 4 to 6 weeks. And that has to be complemented by approvals from our customers and [indiscernible] [ engineering ] books. Based on that, orders can be finalized. That the -- new orders though they are [ tried ] up, but all [indiscernible] can be removed and the orders can be given the green signal, the manufacture vendors can be given a green signal to proceed with manufacturing. So what we have observed since the time of pandemic has hit and also combining it with the supply chain constraints that we have, where most of the [ achievements ] and most of the [ achievement, folding shafts ] that we're going pretty fully, that window of kind of getting the best products at the best price has got limited. And that has seen a [indiscernible].
Yes. So I'll take that with a long-term view that, okay, it's a little bit of part and partial of being in the business. You are still an outstanding quality business for me. If this goes beyond the 200, 300 bps that we are seeing now, that's when I will question how great the business is in the mind of its customers. And hence, do not have that in [indiscernible], but for now, it's a little bit of fluctuation we should learn to live with. It's [indiscernible] how real life is. No worries. The second question is that given the exuberance around the chemical industry, particularly specialty chemicals, but also in a number of chemicals are not so specialty kind of product lines, there's a whole lot of fresh investments being announced by so many companies across the spectrum. Whether it's fine chem, whether it's the fluorochemical guys, even whether it's the fertilizer guys and so on, to that extent, it's a little disappointing that your orders are still just concentrated more than 2/3 in refining oil and gas. We've got a great presence there. But frankly, outside of refining in oil and gas, I would expect a lot more [indiscernible]. I completely grant you the fact that INR 300 crores or whatever we are today, and if I take another INR 50 crores in July. So maybe we are at INR 350-odd crores. It's not a bad number at all, but I would love to see the composition taking more and more extra chemicals.
Absolutely agree with you. That's something which has been -- something which has been driving us as well to venture out into newer sectors. And yes, chemical sector does present a great opportunity to us. And we are getting up towards -- to capture that opportunity. This clean room is going to be one of the factors there, most definitely.
So any...
It's important to do the [ parts and fans ] again in the sectors that we entered, we would like to be the most specialized, the highest end equipment there. So that's where we are. That's where our quoted lines.
Any traction in the API space, for example? Or is that out of bounds for people like you?
There would be because ultimately, it is the process -- is a part of the process in the industry overall. So it is going to be having opportunity for us. But like I said, we will be [ gunning ] for the most severe applications, most [ renewed ] applications, which demand the best of material.
Are you doing anything high tech like [ glassline ] development or something or not yet?
No, [ glassline ] is not in our product range. And the market can be pretty limited there if to take care of the market.
Okay. If I may ask one more question, sir.
Yes, go ahead.
Right. So just a little bit of housekeeping. I guess the group exposures are now out of the balance sheet completely?
Yes.
Ladies and gentlemen, that was the last question. I now hand the conference over to Mr. Rishi Roop Kapoor for his closing comments.
Well, thank you, everyone, for participating in the [ phone ] call.
Thank you. Ladies and gentlemen, on behalf of The Anup Engineering Limited, that concludes this conference. We thank you for joining us, and you may now disconnect your lines. Thank you.