INOX India Ltd

NSE:INOXINDIA

Earnings Call Analysis

INOX India Reports Strong Q2 Growth and Positive Year-End Expectations

INOX India achieved a remarkable 21% year-over-year growth in Q2, with total income of INR 320 crores. The industrial gas segment saw a dramatic 84% increase in orders. EBITDA also rose by 17.7% to INR 77.3 crores, while the net profit increased by 10% to INR 50.1 crores. Looking ahead, the company is targeting a 20% revenue growth for FY '25, aiming for EBITDA margins between 21% to 25% and PAT margins of 13% to 17%. With a strong order backlog and expanding production capabilities, INOX is well-positioned for future growth in the LNG and cryogenic sectors.

A Promising Growth Landscape

INKO India is positioned in a robust Indian economy that is on track to become a $7 trillion economy by the end of the decade. With the growing emphasis on digital and physical infrastructure, the company stands to benefit from the increased demand across various sectors, particularly in energy. The Indian government’s strategic initiatives are crucial in promoting domestic production of oil and gas, thereby reducing dependence on imports and opening new avenues for INOX India's operations.

Seizing Energy Opportunities

As a leader in LNG and cryogenic solutions, INOX India is strategically aligned with the government's ambition to increase the share of natural gas in energy consumption to 15% by 2030. This is expected to significantly boost the demand for LNG solutions and infrastructure. The company's strong market position as a key player in LNG storage and transportation solidifies its role in this energy transition, especially as India promotes LNG for heavy-duty vehicles, aiming for one-third of its long-haul truck fleet to run on LNG by 2030.

Strong Order Book and Sales Growth

During the earnings call, CEO Deepak Acharya highlighted a remarkable 21% growth in sales. INOX India's growing order book and expanded production capacity suggest that this upward trend is expected to continue into the third and fourth quarters. The company anticipates meeting its ambitious revenue growth targets by the end of the fiscal year 2025.

Maximizing Revenue with New Contracts

The company recently secured a substantial order worth approximately INR 50 crores, which is not included in the current order book. This order is anticipated to contribute positively to the company’s revenue in the coming fiscal period, showcasing the potential for significant new contracts arising from innovative technologies in green energy.

Other Income Surge

INOX has seen a notable increase in other income, amounting to INR 190 crores derived from their investment in debt mutual funds. This trend is expected to continue, as the Indian market and debt conditions remain favorable. The management expressed optimism regarding maintaining strong cash levels, which would enhance liquidity for potential investments and operational expenses.

Strategic Entry in the Semiconductor Sector

There are emerging opportunities in the semiconductor industry, spurred by major projects across multiple Indian states. With a history of supplying equipment to significant players like Micron and Foxconn, INOX India is well-positioned to capitalize on the booming semiconductor market, which may further bolster its revenue forecasts.

Looking Ahead: Revenue Projections

For the next 3 to 5 years, the company anticipates an impressive growth trajectory with a projected growth rate of around 20%. The executives hinted that as they venture into the fields of green energy, hydrogen, and nuclear energy, the company's growth potential could be substantial. The strategic positioning in fast-growing industries indicates that INOX India aims to leverage emerging technologies and expand its market share significantly.

Strong Market Presence

INOX holds a commanding market share of 65% to 70% in the LNG fueling stations industry, reflecting its dominant position in a growing sector. With an estimated establishment of 1,000 LNG pumps by 2030, the corresponding equipment supply of between INR 3 crores to INR 5 crores per station showcases a lucrative growth avenue for the company.

Final Remarks

The earnings call showcased INOX India's strategic readiness to harness upcoming market opportunities driven by government policies and global energy trends. With a strong order pipeline, diversified revenue streams, and robust growth targets, INOX India seems set for a promising performance in the near future.

Earnings Call Transcript 2025-Q2

[Operator]

Ladies and gentlemen, good day, and welcome to INOX India Q2 FY '25 Earnings Conference Call 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.

[Mohit Kumar, analyst]

Thank you, Del. Good evening. On behalf of ICICI Securities, I welcome you all to the Q2 FY '25 earnings call of INOX India. Today, we have with us from the management Mr. Deepak Acharya, CEO; Mr. Pavan Logar, CFO; and Mr. Sunil Lavati, Investor Relations. We'll begin with opening remarks from the management followed by Q&A. Thank you, and over to you, sir.

[Deepak Acharya, executive]

Yes. Very good evening, everyone. I welcome you all to the earnings call for our second quarter and half year ended September 30, 2024. I'm sure you all had a great festive week. On behalf of entire INOX India team, I extend best wishes to all of you and your family members.

I hope you all have gone through the results, investor presentation and press release, which are available on the exchanges as well as on our website. Before discussing our financial and operational numbers for the second quarter and half year, I would like to touch upon few macro numbers as well as the industry update to set the context. My colleague and CFO of the company, Pavan Logar would then take you through the financials in detail before we open the forum for question and answers.

India is on the transformative journey towards becoming 7 trillion economy by the end of this decade. This growth is driven by significant advancement in digital and physical infrastructure, which are attracting multinational corporations in manufacturing and services, strengthening our economic landscape. Our country's growth rate pegged ahead of most major economies in the world despite the global headwinds, not only underscores the resilience of our country's economy, but highlights its position as an economic catalyst at the global level for decades to come.

A critical area of fueling this growth is the energy sector. With India relying on imports for about 85% of its oil and gas needs, the government has prioritized expanding domestic production to reduce these discrepancies. Initiatives like opening over 1 million square kilometers of exploration through the Open Acreage Licensing Program to highlight these efforts. With the 10th round of bidding for oil and gas assets set for the early next year. The country's energy mix is also witnessing a double-digit growth in the installed capacity of renewable energy sources.

For INOX India, leader in LNG and cryogenic solutions, this transformation brings vast opportunities. India's emphasis on LNG as a cleaner energy source aligns perfectly with enough expertise. As a key player in LNG storage, transportation and regasification system, INOX is well positioned to support this energy transition, both within India and international.

The governments aim to increase the share of natural gas to 15% of our LNG mix by 2030 which opens up extensive possibilities for INOX to provide solutions that meet the growing demand for natural gas infrastructure. Moreover, India is championing LNG as a sustainable alternative for heavy-duty vehicles.

By 2030, the goal is for 1/3 of our long-haul truck fleet to run on LNG, reducing emissions and cutting fuel cost. To facilitate this shift, major measures like IOCL, BPCL, HPCL are setting up LNG fueling stations along the high-traffic routes, including the Golden Quadrilateral. With 1,000 stations planned in the next few years, INOX cryogenic technology from LNG storage tanks to terminals is in central establishing this infrastructure.

INOX India is also setted to play a role in globally scaling hydrogen value chain. Our products and solutions will be critical components in every aspect of the value chain right from creation to the consumption. With newer markets across the globe coming into the fray, looking to build applications for hydrogen as a clean energy source. We are also evolving our processes and supply chain to cater to anticipated surge.

As we expand our energy and transport sector, INOX India stands ready to play a crucial role in building a cleaner, more sustainable India, delivering advanced solutions that align with the nation's vision of growth and resilience. I'm also delighted to inform you that INOX India has received the prestigious ET Energy Award, not in 1 but 2 categories.

EPC Company Award for commanding energy, procurement and construction companies that are excelled in delivering high-quality projects and services in the emerging sector and the equipment manufacturing award, recognizing manufacturer of equipment and technology solutions that have demonstrated excellent innovation in the energy sector.

Now I would like to inform update on our company's Q2 and half yearly 2025 performance. Let me begin with our largest business segment, industrial gas Solutions. The inflow of orders in industrial gas vertical during the Q2 FY '25 is very good, resulting into overall order booking of INR 262 crores, which is almost 84% higher than our Q1 FY '25. We have received several orders for standard equipment for domestic gas majors as well as private players. We also received orders for special cryogenic transport equipment for ethylene oxide for one of the largest petrochemical company in India.

Orders have been received for bulk quantity IMO tanks received from one of the largest oilfield company in South America. We have received industrial gas trailer orders from Middle East region, large value orders for engineering package system from Far East region and domestic customers also -- have been also received. We have secured bulk storage tank for largest solar project and also dispatched large size ammonia tank to Middle East region. We are witnessing a sustained business for disposable cylinders in North America and domestic market.

We have successfully completed DOT audit for disposable cylinders and liquid cylinders. For the full year, we are confident of achieving targeted revenue for the segment that we have already guided you earlier.

Now I would like to throw some light on the performance of our LNG business segment. Order book for the Q2 FY '25 stands INR 98 crores, which is higher than Q1 FY '25 by almost 23%. We have observed substantial growth in RFQs for LNG business from domestic as well as international market. Received repeat orders for LCNG stations and LNG semitrailers from CGD companies. We have successfully commissioned LNG fueling stations for BPCL in Adani Total.

Automotive LNG fuel tank supply to OEM manufacturers in India is growing rapidly, and we have proved our products and also received orders for LNG fuel tanks from all the 4 major OEM manufacturers in India. We also received orders for 990 LNG fuel tanks from South America. We have received a large order of LNG semi-trailers from South America. We also received big orders for supply of LNG storage tanks and regasification units from major energy company in South America.

With success of Caribbean LNG commissioning of mini LNG terminal at Antigua for supply of LNG to 40-megawatt power plant, we are hopeful for receiving similar projects in the coming future.

I shall now talk about the business performance of our cryo-scientific segment. We have successfully installed cryolines and warmlines on the plant bridge at ITER site. We have successfully repaired vacuum vessel thermal panels and dispatch them to ITER site. The same was well appreciated by the ITER organization in France.

We have successfully completed and dispatched [ T ] branch components for WUST project. We have received new orders from ITER for intermediate wall box for MCTB. We have received orders from CERN or HTS cryostats. We are in discussion for big science projects for FAIR Germany. With consistent performance and timely delivery at ITER site of cryolines, INOX India has become one of the most reliable supplier for European research projects in cryogenic space.

Let me talk about our youngest business segment, that is the steel kegs and container business. Our state-of-the-art Savli facility for keg manufacturing is fully geared up to cater the requirements of domestic and international market and have developed more than 25 variants of kegs required for the Europe and U.S. market. We have dispatched more than 11,000 kegs to breweries in India, United States, Belgium, Germany and Brazil.

I'm happy to share that audits for major breweries such as AB InBev and Heineken is planned in Q3 FY '25. The South America market for beverage kegs looks very promising, and we are there to service that market as well. We have received positive feedback from most of the customers and breweries for the sample kegs provided to them for their approval.

Active RFQs for more than 1.5 lakh kegs received from potential customers from India, Australia, Belgium, U.S.A., Norway and Spain. We are hopeful to get major breakthrough for supply of kegs to breweries in Q3 FY '25.

Let me share the quarterly business numbers to you now. Order backlog as on 30th September 2024 is INR 1,178 crores with 54% order from industrial gas, 25% order from LNG and 21% orders from the cryo-scientific division. Our exports comprise around 53% of the total order backlog.

In terms of segmentation, 59% of income has come from IG, 19% has come from LNG and 18% from cryo-scientific and 4% from other businesses. Total order inflow during the Q2 was INR 366 crores comprising 72% from IG, 26% from LNG and 2% from cryo-scientific segment.

I would like to thank you for all for your patient hearing, and I now hand over to Mr. Pavan Logar, our CFO, who will share the financial numbers in detail with you. Thank you so much.

[Pavan Logar, executive]

Thank you, Deepak, and good evening, everyone. I hope you all had a good festive week. I shall summarize financials for the quarter and half year ended on 30th September. Let me share the numbers for Q2 and H2. The total income for Q2 was INR 320 crores, which grew by around 21%. The half yearly income stood at INR 622 crores, grown by 6.9% on Y-o-Y basis.

The EBITDA for Q2 was up by 17.7% stood to INR 77.3 crores. The H2 EBITDA grew by 5% at around INR 153 crores. Employee expenses has arisen by 16.7% to INR 27.3 crores from INR 23.4 crores due to Savli unit started in September '23.

Other expenses have arisen by 25% to INR 75 crores from INR 60 crores due to higher job work charges for ITER France repair orders for which free materials supplied by ITER. Our quarterly PAT grew by 10% to INR 50.1 crores and decreased by 1.9% to INR 101.3 crores in H2 level due to higher tax expenses because of removal of indexation benefit on LTCG by India budget '24.

The total debt as on Q2 FY '25 is almost nil, which provides us adequate room to raise debt in future. The company has comfortable net cash position of INR 191 crores as on 30th September '24.

That concludes my update on the financial highlights of the company. I shall now request the moderator to open the floor for question-and-answer session. Thank you.

[Operator]

[Operator Instructions] The first question is from the line of Sameer, who is an individual investor.

[Unknown Attendee]

My question is that the results are very good. And in future, when we hope to get that dividend from the company?

[Pavan Logar, executive]

Dividend actually, it is to be decided by the Board of Directors at the year-end only, not at present. But yes, definitely, we have already cash available which is INR 191 crores. So we'll definitely consider dividend. We are a dividend-paying company all over the years. So it will be decided by the Board definitely.

[Operator]

The next question is from the line of Ankur Sharma from HDFC Life.

[Ankur Sharma, analyst]

A couple of questions. One was, if I remember right, in Q1, we have seen a decline in top line, and that was attributed to some container shortages because of the Red Sea issue, higher freight costs, et cetera. So all of that, if you can update us of how are things on that front? Have these issues kind of settled down? Or if not, how are we kind of managing it? And is there also a component of higher freight costs sitting in other OpEx?

[Deepak Acharya, executive]

Yes, Red Sea issue is still continuing, but its severity is little reduced. And we are finding that we are getting containers now, there is no issue. Earlier, the freight cost was very high. Now it has reduced also, but not it has come to the original level. So still, there are issues. But with proper planning, we are managing the show, and we are confident that it will not impact our sales or revenue this year.

[Ankur Sharma, analyst]

And sir, if you could just remind us what kind of top line and margins are you kind of targeting for the full year FY '25?

[Deepak Acharya, executive]

Can you repeat?

[Ankur Sharma, analyst]

Sir, if you could just remind us what would be your sales and margin guidance? What would be your sales top line guidance for FY '25? And also, what would be your targeted margin guidance at the EBITDA level?

[Deepak Acharya, executive]

So whatever figures we have provided you earlier for the year-end, we are 100% sure that we'll achieve those figures, which is almost like a growth of 20% over the last year. And our margin will be also in the same fashion between 20% to -- 21% to 25% EBITDA level and around...

[Pavan Logar, executive]

13% to 17%.

[Deepak Acharya, executive]

13% to 17% PAT level.

[Ankur Sharma, analyst]

Okay. Okay. And sir, just on this cash flow, which seems to be negative for the first half. If you could just help us what is driving that? How do you see full year operating cash flow? Do you expect an improvement going forward?

[Pavan Logar, executive]

Actually, we are already expanding our new unit, and we already expanded about INR 86 crores worth of value in this year for CapEx because a lot of expansions are going on. But still you know we are still having the cash in hand of INR 191 crores. And our order book is already increasing a lot. And to cope up with this order book, definitely, our working capital will also definitely increase by some value, but not much. So we will be cash positive only in the year.

[Ankur Sharma, analyst]

So I was referring more to the operating cash flow, so you expect that would improve as you maybe bring down your inventory and debtors, that's what you indicated?

[Pavan Logar, executive]

Yes. Operating cash flow will definitely improve. And because of the CapEx only, this has been a little bit -- the funds available has been decreased, but which will be recovered and INR 100 crores worth of CapEx we are incurring in this year. So that will definitely reduce the cash flow to that extent. But because of the earning, it will be again recovered, earning of '24, '25 will be there.

[Operator]

[Operator Instructions] The next question is from the line of Abhinav from ICICI Securities.

[Unknown Analyst]

My first question is in the beer keg segment, order inflow, as you said, is expected in Q3. Have you seen any interest in the month of October that has -- that just passed by?

[Deepak Acharya, executive]

Yes. The beer keg business, what we have seen is normally -- the season starts normally from January to July. This is a typical season where there is a peak. And the inquiries start flowing in from maybe October, November, December. And we have seen that the market, which was slightly sluggish in the initial period because that was a lull period. But now we are sending a lot of inquiries, RFQs are coming in.

And whatever breweries, we have supplied so far as a sample to Indian breweries as well as outside in the U.S. and Europe, everywhere the product is approved. So we don't find any difficulty from quality and other aspects point of view. Just we are waiting for their final confirmations. And I'm hopeful this Q3 will substantially and Q4 will be flooded with orders.

[Unknown Analyst]

Okay. And what will be the contribution to the revenues in FY '25 from this segment?

[Deepak Acharya, executive]

We are expecting around INR 50 crores to INR 60 crores business from the keg for this year till March.

[Unknown Analyst]

Okay. And on a whole, sir, in the first half, revenue growth was at about 7%, can we achieve a growth of 15% in FY '25 as a whole? What will be your target for FY '25 revenue growth?

[Deepak Acharya, executive]

Quarter, you must have seen we are almost 21% growth is there. Coming third quarter and fourth quarter, we are also improving. We have a very good order book, and we have expanded our facility, we have improved our production capacity. So we are quite hopeful by end of the year, we'll achieve these targets.

[Unknown Analyst]

Okay. And a significant order that we won yesterday, is that part of the current order book?

[Deepak Acharya, executive]

Significant?

[Unknown Analyst]

The order that we won regarding the liquid energy storage tanks. So is that part of the current order book?

[Deepak Acharya, executive]

No, no, no.

[Pavan Logar, executive]

No, no, no. The order book, which we have shown you is on 30th September.

[Unknown Analyst]

Understood. And what will be the value of this particular order, potential value?

[Deepak Acharya, executive]

This order will be around -- something around INR 50 crores plus.

[Unknown Analyst]

Okay. And sir, one last question. The other income for this quarter is high. What is that on account of?

[Deepak Acharya, executive]

Other income.

[Pavan Logar, executive]

Other income is actually we have this cash flow of INR 190 crores, which is actually, we took these mutual funds with us. That is a debt mutual funds. And the earnings which we are getting is very, very high than last year. So that's why our other income is increasing.

[Unknown Analyst]

Okay. And for the year, like the next 2 quarters, what is the estimate on that -- on the other income part?

[Pavan Logar, executive]

Similar only because Indian market is doing very well, and debt market is also doing very well. And from -- since April only, we are getting very good margins in these mutual funds.

[Unknown Analyst]

Okay. So we expect the cash levels to remain the same as well?

[Pavan Logar, executive]

Yes, yes, yes.

[Operator]

[Operator Instructions] The next question is from the line of Bimal Sampat, who is an individual investor.

[Unknown Attendee]

Yes. So my first question was asked by the previous participant about the order size of that. And what is the addressable market for this kind of product, which we got from England yesterday?

[Deepak Acharya, executive]

Yes. This is perhaps the first order in the world, I can say. This is a very special technology for green energy. And I think this is the first, but there are so many applications which can come up, because here, what they are doing is they are liquefying the air to liquid air. And when the power is not available, then they will expand this and run the generators and convert it into a green energy for 60-megawatt project.

So if this is successful, there are so many projects which are lined up now. So we are hopeful that once we complete this project by 2026, there will be plenty of opportunities for similar projects as everybody is thinking of green energy in coming years. So this is a very typical example and first of its kind order for us.

[Unknown Attendee]

Okay. And second question is about this. You said 1,000 LNG pumps are coming up by 2030, correct?

[Deepak Acharya, executive]

Yes.

[Unknown Attendee]

So what is -- I mean, for each pump, what is the quantum of equipment, which will go in?

[Deepak Acharya, executive]

It depends on the size of the pump which we are putting, but approximate value for the fueling station is from INR 3 crores to INR 5 crores.

[Unknown Attendee]

INR 3 crores to INR 5 crores? Okay. And at present, what is our market share in this?

[Deepak Acharya, executive]

Our market share is almost 65% to 70% in this.

[Unknown Attendee]

Okay. In future, you hope to have the same market share or...

[Deepak Acharya, executive]

We wish to have.

[Unknown Attendee]

Wish to have. Okay, okay, okay.

[Operator]

The next question is from the line of Dhruv Shah from Dalal & Broacha.

[Dhruv Shah, analyst]

So just continuing on the previous participant question, on the LNG station, out of the 1,000 stations that has been planned by the government. How many as on date has been constructed?

[Deepak Acharya, executive]

Total, to our knowledge, around 50-plus stations are in -- already has started and 30 more are in line now. So depending on the progress, maybe another 6 to 8 months another 30 will be added, but 50 have already started working now.

[Dhruv Shah, analyst]

And any number that you can give like how many can come up in the next 3 years?

[Deepak Acharya, executive]

Next 3 years should come around 400 to 500 minimum.

[Dhruv Shah, analyst]

400 to 500. And out of that, we would be doing with respect to 60% market share 240, 250-odd stations?

[Deepak Acharya, executive]

As on today, we are doing around 60% to 65%. Going forward, let us see when the lot of opportunities are there, many people trying to come into the market. But we will -- because of early start and our product quality being the best, and we manufacture the entire equipment, people are inclined to come to INOX India.

[Dhruv Shah, analyst]

So what would be our margins in constructing these stations? EBITDA margins?

[Deepak Acharya, executive]

Pardon?

[Dhruv Shah, analyst]

What would be our EBITDA margin in constructing one station?

[Pavan Logar, executive]

EBITDA margin for -- we don't look at the EBITDA margin station wise, we -- from all our products, we convert that into EBITDA margin, which is ranging from 21% to 25% on an average.

[Dhruv Shah, analyst]

Okay. Okay. And sir, my next question was so if you exclude the other income, which has been quite significant this quarter, seen a margin dip across our EBITDA margins and PAT margins. Any specific reason for this dip?

[Pavan Logar, executive]

Yes, yes. There is a specific reason this year's budget, which Government of India has actually, especially these mutual funds, all these mutual funds are long term with us. And suddenly, the government has changed their policy and now the tax is applicable and the indexation benefit has been gone out. So there is no indexation benefit and now we have to pay the tax on the total income, which we already accrued on these mutual funds at the rate of 14.3% and due to that, we have...

[Dhruv Shah, analyst]

My question was with respect to your operating margin. So removing your other income component, we have seen a margin. So your EBITDA margins have dipped by around 200 basis points on a Y-o-Y basis. So any particular reason for this dip? Is it due to product mix?

[Pavan Logar, executive]

No, no, EBITDA margin always goes with the range. It depends on order to order. So it's a range. It cannot be same every time. It must be in the range only. So 1% or 2% is here and there, it will always be there.

[Dhruv Shah, analyst]

Right, sir. And just if you can -- if you can throw some light on the LNG truck fleet. We have a target of 1/3 of the country's fleet to be dependent on LNG. What is the state of that as of now?

[Deepak Acharya, executive]

Yes. This is a very nice question. And let me tell you that INOX India is working with these OEM manufacturers for last 1.5 years now. So we are now qualified with almost all 4 OEM manufacturers in India. And if you see recently, Tata has inaugurated their LNG trucks in Ahmedabad and they are expecting a good number of trucks even in that video and when I was also present during the corporate presentation of Tata.

They are saying 1 million trucks, they will sell by 2035. That is such ambitious project target Tata has taken. Similarly, Eicher, Volvo, similarly Ashok Leyland, and Blue Energy. These are the 4 major players, and we are approved by all of them. And we are just waiting for them. And even we are recently supplied to South America to Scania trucks.

And we are getting a good number of inquiries and our product is getting established. People were just waiting for the fuel stations. So almost 50 fuel stations are available, and during one fill with the 450-liter tank, it goes to almost 600, 700 kilometers, whereas 990-liter type of tank can go to 1,200 kilometers.

So the market is picking up. We are seeing a lot of traction into this product, and people are very bullish. The performance of the engine, the efficiency, the theft rate, everything has improved. And the pollution has also drastically reduced. So all the benefits are there with these LNG, availability of LNG is also good nowadays. So all this, I think there is potential that in coming years, we'll see many, many trucks on the road with LNG as a fuel.

[Dhruv Shah, analyst]

And just if I can squeeze in one last question. So in cryogenic equipment, what would be our market share in India and globally, if you can -- if you have any numbers on that?

[Deepak Acharya, executive]

Cryogenic tank business, we have almost like 60% plus market share. And on the global basis, we have almost less than 10%, I can say.

[Dhruv Shah, analyst]

Less than 10%?

[Deepak Acharya, executive]

Yes.

[Dhruv Shah, analyst]

And who would be the largest player globally?

[Deepak Acharya, executive]

Largest player is Chart from U.S.A and another one is Chinese called CIMC Enric. These are the 2 major players which are again -- we have the competition with.

[Operator]

[Operator Instructions] The next question is from the line of Sanjay Shah from [ Pranishta ].

[Sanjay Shah, analyst]

I hope you can hear me.

[Deepak Acharya, executive]

Yes, yes, Sanjay.

[Sanjay Shah, analyst]

A couple of quick questions. One, are we seeing any traction in the semiconductor industry? That's one. And second, just given this kind of cutting-edge work that you do in a variety of different industries, what would be your 3- to 5-year vision in terms of top line? If you could just elaborate on this 2?

[Deepak Acharya, executive]

You're asking a very nice question on the semiconductor industry. As semiconductor industry is growing very fast, recently 3, 4 projects have declared, one in Ahmedabad, one in Mumbai and in Chennai and Odisha. So almost every project is more than INR 50,000 crores. So we find a lot of opportunities for this because we have recently supplied equipment to Micron and Foxconn. And way back around a decade back, we have supplied a similar equipment to Singapore as well.

A lot of piping work is also involved, which requires a very clean piping. The storage has to be very clean. And our parent company also provides the industrial gases to them. So we find that the semiconductor industry can be really helpful in improving our business going forward.

[Sanjay Shah, analyst]

And what would be -- I mean, just given everything that's happening and the kind of industries in which you are involved, what would be your 3 to 5-year vision or an outlook for revenue?

[Deepak Acharya, executive]

So we are growing at around 20%. And if everything goes well, like green energy, hydrogen, nuclear, semiconductor, I think the sky is limit, but we are trying to see how we can really cater to these requirements. But we expect we are into the areas where very few have dared to trade before.

[Operator]

[Operator Instructions] As there are no further questions, I would now like to hand the conference over to the management for closing comments.

[Deepak Acharya, executive]

Yes. Thank you all of you for attending this call. I hope we have answered most of the questions. If something is still you want to ask, you can send the mail to us and we'll reply. Thank you so much for attending this call.

[Pavan Logar, executive]

Thank you. Thank you so much.

[Operator]

Thank you. On behalf of ICICI Securities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

[Deepak Acharya, executive]

Thank you so much.