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Mishra Dhatu Nigam Ltd
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Ladies and gentlemen, good day, and welcome to MIDHANI Limited Q1 FY '24 Earnings Conference Call hosted by ICICI Securities Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Amit Dixit from ICICI Securities. Thank you, and over to you, Mr. Dixit.
Yes. Thanks, Lida. Good afternoon, everyone, and thanks for joining the call today. At the outset, I would like to thank the management for giving us an opportunity to host the call. From the management, we have Dr. Sanjay Kumar Jha, the MD; Mr. M. Gowri Sankara Rao, Director Finance; and Mr. T. Muthukumar, Director, P&M. Without much ado, I would like to invite Dr. Jha for opening remarks, post which we will open the floor for an interactive Q&A session. Over to you, sir.
Yes. Good afternoon, and I extend my hearty welcome to all the investors joining through this conference call. And also, I'm joined with, as you told with our Director Finance, M. Gowri Sankara Rao; Director Product and Marketing, T. Muthukumar. And we also have our marketing AGM and company secretary, Mr. Paul. So in nutshell, what I want to make it brief, whatever we have the results -- of course, it is already published. But I would like to mention some of the highlights for this quarter. So this quarter has been a very unique for us because in this quarter, the first thing is that there is a substantial increase in our revenue. That is sales has gone up from the last financial year of the quarter 1. This quarter 1 has gone up by -- almost by 60%. And also, the VoP also has gone up by 26%, but the main that the sales has gone up.
In addition to that, in this sales also the Rohtak facility has given -- contributed almost 20%, 25% has come from the Rohtak, almost 30% from the Rohtak only. This is also a good sign for our -- the investment which we have done in the new projects. In addition to that, this quarter, the order booking has also been very good. I think we have crossed more than INR 500 crores order booking in quarter 1 of this financial year. So -- and the export order also booking also was good in the opening of this in this quarter. And we have executed the export order also in this quarter that was around INR 5 crores, but it has gone up subsequently. And in that, the major highlight I would like to mention here that execution of the order receipt from the Rolls-Royce that we have completed the first trial order given by them.
And now we are in a process to get the next order also from them. And in addition to that, there is a substantial interest. A lot of interest is shown by international companies or leading aerospace companies of the world. They have also shown the interest in MIDHANI materials, and we'll be seeing this result as we progress in this financial year.
So overall and essentially, we have booked an order from -- it was -- this order is meant for GE aerospace, that also order booking MIDHANI has received. So these are the -- some of the important things which has happened in this quarter as well as -- as on today. So with this few points, I would like to take the questions and queries from the investor. While I am talking from our side, so I request to give your queries and questions to us. Thank you.
[Operator Instructions] The first question is from the line of Amit Dixit from ICICI Securities.
So in the time the question to assemble, I would just like to ask a few questions, sir. The first one is this -- you talked about INR 500 crores of order booking in Q1 FY '24. If you can throw some more color on that, which platform exactly the order booking happened? And what kind of execution time lines we are looking at?
In fact, this is a mixed bag of orders I would like to mention here. But majority is from the defense sector, also includes some of the export orders also. So I can give you the breakup of all INR 520 crores. But mainly, it has come from the defense one, which already one order is of INR 170 crores plus also we have informed to the SEBI also. Then we have got one order from LNP that is for the space requirement, which we are now -- they're manufacturing the 5 steps of PSLV. This will be the first of its kind in the country because of the participation by the public private participation, by private sector alone. So they are basically having a consortium sort of thing where LNP and HAL, they are participating together. And they are going to make that PSLV. That order was also almost around a value of around INR 95 crores. And in addition to that, some of the orders we have from the space -- aerospace industry also. So we can give you the breakup of those things.
Sir, that is INR 170 crores plus INR 95 crores and then aero, how much order was there?
INR 50 crores comes from aerospace and INR 30 crores exports. And remaining from defense including the size and all, it is a mix. We can tell you that total figure. It -- it was, in fact, more than INR 500 crores, INR 520 crores around, but what I would like to indicate here that this quarter, the order booking has been very good. Of course, through non-debt, we have done suddenly, it was in the pipeline. It has materialized in this quarter. And we are now looking ahead for the next -- this quarter also for the better -- further order booking.
Okay. Wonderful sir. We have a question in the queue, I will come back later.
Lida, you can move to the question queue.
[Operator Instructions] Next question is from the line of Sunny Agrawal from SBICAPS Securities.
Sir, kindly expect to shed more light on the export opportunity for MIDHANI's product. So we have received -- as we have mentioned, we have received a good inquiry on export fund. So what is the opportunity we are seeing over there in medium to long term as far as export business is concerned?
As we have mentioned earlier also, since we are entering in the export market in the areas of high-end technology like aerospace, so aerospace and oil and gas, et cetera. So basically, those sectors and -- we have to first get approved by the customer, which I mentioned that regarding Rolls-Royce. Rolls-Royce already -- they have taken our product, and it was certified and clear. So now we are looking for a next order from them.
In addition to that, which I mentioned about the GE Aerospace, that also has not come -- they have taken initially our material, they have checked the property. And then they have placed the order for the requirement of the materials to us. Again, based on this supply, whatever they have given the order now, they can increase the quantity by further 3 or 4 times depending on the requirement of that specific rate. In addition to that, our earlier one, which we have given to oil and gas. Also, they also are looking for the new orders we expected to come. And I would like to mention here that we are also given the material to [ Karen Witney ]. And Karen Witney also has agreed to now give the new requirements continue from there also. But as and when we receive the type of orders and quantity will be definitely informing to the investors, and it will -- they'll get the information from us.
Yes. Sir, my next question pertains to margin profile. Sorry, I'm new to the company asking a very basic question. So depending on the end user industry, whether it is different, whether this is aerospace, whether it is oil and gas, does our margin profile varies or it really went to track in margin based on the end user industry use for our products?
Definitely, margin will vary depending on the -- which sector, which customer you are serving, and also it depends on that and many orders which we are now we are looking for -- it is coming under competition only because export market also is not exclusive to us. Any aerospace or oil and gas companies there operating at large scale. They are having a list of suppliers with them. So they are -- we are getting introduced or even inducted as one of them. So definitely, they will not only compare the quality. They will also compare the price also. First our task is to not get it qualified, our quality should be proven with the cost also because you cannot charge -- and then whenever they go for the bulk purchase and not, they will see the price, delivery and of course, the quality is already -- is getting informed by them.
And about the [ food ] market, but many things which we are getting, I suppose today, the day of nomination is not there. It is not that exclusively we will not even get, but there are certain technologies, certain products, which already we have made our technology exclusive. Their possibilities that we can get on the nomination basis. But there also, today, government is -- for any our customers, they definitely will try to compare the price for similar type of materials from the elsewhere. So the margin will definitely it will be a pressure. It cannot -- you cannot charge anything from the customers there.
But sir, is it fair to assume that on a medium- to long-term basis, 28% to 30% EBITDA margin is a sustainable margin for MIDHANI as an organization?
20% to 30%?
25% to 30%.
25% can be the max, it is possible. But 30%, 35%, I don't think it is a future to get.
Okay.
If we are crossing 25%, it would be great. That's what I can to tell you.
Okay. Okay. And sir, again, one very basic question. So our inventory on books is very high as compared to our sales. So any plan to reduce our working capital cycle, core working capital cycle? Or it will -- the nature of the business is so that the inventory days will continue to remain on a higher side?
Your both statements are true. Nature of business also is like that. But we also have plan to reduce inventory. We cannot simply take the shelter of nature of business and go on in building up the inventory. So we have a continuous plan to cut down -- cut short our inventory. We are working towards that. And the result, of course, it will not come in greatly because whatever material we are using now, the cost also is going up. Probably if I'm using the low alloy steel and very cheap quality of commodity, that's controlling faster. But since we are all high-end products. So the value will be going so high that even the tonnage is less, money wise you see that it is going up. And our product is we have a mix of product. Sometimes we are having the steel normal [indiscernible], sometimes we have a very high-end product, nickel plus alloys and their addition will be so high.
Some of the material will be costing around INR 4,000, INR 5,000 kg single element. These few will definitely have pressure on that. And we have -- yes, we have a plan to cut down the inventory. Our regular review is there by our auditors, audit committee, Board and even at the level of our directors, they regularly review and see that how we can cut down our inventory.
So sir, any guidance you would like to give on how are going to -- how we are going to reduce the inventory over the next 2, 3 years, if you can share...
It is very clear that recycling more and more material, whatever you produce, if it is reverts coming from new systems. We are should-- we are making a policy where we should have the 0 waste -- 0 materials would be there. So this is what the policy is there. We are trying to track each and every [ seats ] now each and every product and try to recycle it as -- and now since earlier, the volumes are less. Now the volume is increasing for a higher alloys. And number of alloys also are coming down. So it is possible to do that, that we are trying to do that in that space.
Sunny, sorry to interrupt you. I'll request you to come back in the question you for a follow-up question. [Operator Instructions] Next question is from the line of Harshit from Elara.
Just wanted to get a sense on the CapEx which you had earlier indicated which you're doing in Wide Plate Mill, the armored facility for helicopters, et cetera. And any other new CapEx that you are looking at apart from the aluminum JV, which you have with NALCO. So update would be very helpful on commissioning and what kind of a turnover one can expect?
I think you are asking about the earlier committed CapEx for Wide Plate Mill?
Yes sir, yes.
Wide Plate Mill already we have commissioned and it is running now from last almost 1.5 years, we are running now. And also, we have commissioned our Rohtak facility for our Armour facility. And many other projects we have indicated earlier has been commissioned.
Coming to the future projects also, we have indicated at some place that this year, we are going to spend at the tune of around INR 80 crores for the CapEx expenditure. So we are very much on the track now. But anyway, the limit of CapEx also, we have to keep because unless whatever CapEx you are doing is converted to the sales there or getting the revenue, we have to take some limitations, but we have kept that CapEx. It is not that we have made it to mill, but we are already having some plan on CapEx. We'll inform you as and when, but you can check our -- even our annual report or annual -- it is already available that whatever equipment we have installed and commissioned and I think last 2 to 3 years, it is available.
And sir, this is for CapEx, which you plan to do this [indiscernible] what if you can share and status on the NALCO JV sir, where we are investing [indiscernible] plus crores of CapEx?
NALCO JV is a very huge capital investment project. There, the requirement is very large. The figure is very high, almost it was sales around INR 170 crores earlier. But the major question mark is on the project liability itself has come because aluminium consumption in India, high-end consumption of aluminium. Whatever was, expected forecast was there earlier, that we are not able to see the demand in coming next 5 years. So considering that, we are not able to make a viable report on the project at DPR to go for that support from the loan from the banks and all. So it is held up at that stage. We are still trying to work out, but as of now, we feel that the investment in that project is not viable. So we are keeping it hold, and we are trying to invest in the areas where we see the opportunities there for MIDHANI for quick conversion or quick realization of the sales by investing in our previous CapEx.
And the INR 80 crores CapEx which you are doing is towards which facility, sir?
We have the various facilities, we are now putting the fastener plant. Fastener plant for making the aerospace fasteners. Aerospace fastener are getting imported in the country in the large quantity. So we are trying to make the aeropsace fastener plant. In addition to that, we are also having 1 titanium plant where we are going to make the titanium ingot enhancement of our capacity in titanium. That plant is there. Then we have some modification in our baron wire facility where we see a lot of opportunities there in the area of filler wire and all. So because there are different -- these are basically the augmentation of our facilities and Skull melting, also, we have a commissioned now. Skull melting for making the titanium castings.
And the Wide Plate Mill facility, which you had started 1.5 years back, what is the revenue run rate that you have achieved from the facility till now, sir, on a yearly basis or a quarterly basis would be helpful?
Last year was about around INR 40 crores -- around INR 45 crores we have got last year. In addition to that, we have also done some savings from there what we're outsourcing. So -- but this year, basically this year, which is coming in the full place. Last year, it was only in the 1 quarter, 1.5 quarter only, it has given the full product. So this year, we are going for INR 150 crores from that facility.
From that facility. Okay. And what is the current order book which you have, sir? And is it possible for you to give the breakup in terms of defense and aerospace as far as the business is concerned?
Yes. We have today around INR 1,570 crores in the order book. And in that, some breakup as say 26% on defense. We will give you, no problem. I'll -- but I'll tell you, total we have INR 1,578 crores we have.
And by end of the year, do you expect to cross INR 2,000 crores in terms of order book sir?
In that 70% is defense and balance 30%, we have a space -- the aerospace, railways and others.
Okay, sir. Okay. Okay. Thank you very much.
[Operator Instructions] Next question is from the line of [ Kosh Narang ] from Electrum PMS.
I just had one question regarding the order inflow. So what kind of order inflow are you expecting in the next 3 years?
Next 3 years?
Yes. Like seeing our first quarter was INR 550 crores. So would that be a sustainable order inflow expected?
Yes, this year we expected. See, today, market is good. Whatever you can at least execute you're going to get. Market is not the problem. And I think one of the biggest thing I'm -- I want to see the opportunities for MIDHANI, in the near future is coming from indigenization of aerospace materials. So department is now pursuing the big way. In the materials for our earlier platform like Sukhoi, then also for -- now LCA also is now getting import, export also there for the LCA, as we are also finding the LCA, if we get the good requirement. AMCA project also development work is going on in the full swing. LCA Mark 2 is coming out. The Mark 2 also, we are getting some initial orders we have got. So many things are there in the pipeline than some of the development for 110-kilo newtons Arrow engine for AMCA. So initial material development program has been finalized by development agencies. Many things are lined up and you must be listening on the different type of missiles and all, also is coming.
Right. And sir, just the second question, what would be the execution period of our order book of INR 1,578 crores?
It varies. I cannot say that many orders are there, which I have to finish in 3 months also. Because the export order time is very less. We can give in 3 months. But some of the orders, we have the span of around 2 years also. So it depends on that many things required for that like naval application, we have some orders, which varies from 1 year to 1.5 -- 2 years.
Okay. So average within 2 years...
Average time, if you see my -- I have to -- if I see the order -- total order -- this order is for our MIDHANI, I can say, for 1 year or 1.5.
1.5 year, okay.
[Operator Instructions] Next question is from the line of Romil Jain from Electrum PMS.
Sir, I just want to understand in the backdrop of the strong indigenization efforts at the at India level. How is MIDHANI positioned itself over the last few years in terms of manpower, material policies at the company because as the order flow keeps on getting stronger and stronger, I think we will need to be much more agile. So if you can just give some more strategic understanding of what's happening at the corporate level.
See, as you have rightly told that indigenization [indiscernible] So what you need, you need the capacity, you need technology, you need the skilled manpower, you need the proper policy in place to, like I say, a corporate governance. So all these things are in place. And regarding capacity at all, will last -- as you have seen the CapEx infusion by the company in the last 4, 5 years, which has been quite good. I think those things are now paying us because we have that sufficient capacity to handle the requirements coming from indigenization part.
Okay. Okay. And second is on aerospace as well as the titanium project that you mentioned. So I just want to understand on the titanium side, at what stage we are in terms of finalization of the projects and when the revenues can start coming in? And broadly, what kind of revenue can come post the titanium projects are in place and whether titanium would be helpful on the indigenization of the aerospace equipment and engines and sorts of that. So just to -- as a complementary question on aerospace as well as titanium if you can throw some light.
The aerospace, we have broadly 3 classes of materials are required, special steel then you have nickel base alloys, superalloys, it is called superalloys also and titanium alloys. So MIDHANI, we have all the 3 areas we are working. Now what we are doing in titanium that we are augmenting our capacity. We have right now titanium, we are meeting the requirements. But we are augmenting our capacity in titanium because we have set up a Wide Plate Mill also. And there also we need some input materials so that we can make the flat product using the rolling.
So considering that this facility has been expanded. And only this month, we are going to commission the entire facility titanium side. Super alloy, already we have our capacity is sufficient. Of course, we are improving our equipment capability, technology dosing are is a regular phenomena. But superalloys, we have no problem as far as the capacity is concerned, as on today. But there also, I am seeing that good demands are coming in the future. Probably, we have to augment some more facilities, for which already our people, they are working, and we have some projection for our future equipment and projects that has been planned now.
Okay. Okay. And in terms of bid pipeline, in the last 2, 3 years, how has the pipeline changed for the company because we have seen very strong order inflow in the last 2 quarters or so. So before the indigenization efforts and everything that the government took and presently, when we are sitting on this order book as well as pipeline, how has the pipeline shifted, if you can put a number to it and the conversion, it would be really better to understand.
I couldn't -- pipeline or order [indiscernible].
No. bid pipeline. So we would have bid for certain projects, which...
That is bidding.
We have not got, yes. So how that has changed over the last 5 years?
Okay. Okay. Okay. We're bidding in the sense that it is not bidding. We are -- as and when we see the requirements we are bidding is there. But as I am just talking about at the level of equipment strengthening itself, sir. The Ministry of Defense has taken a very quick action and whatever is the requirements coming from the country, like you have seen in recent past, I'll give one example of Tejas only. Tejas they have sanctioned. They have also given the ALH that helicopters, they are also sanctioning the different types of other requirements like missiles. So those things are getting sanctioned faster. I think that is where the Indian industry, not only MIDHANI, other industry also they're getting benefited. So moment we have that type of inflow will be there. The requirement of materials will start increasing.
And in addition to that, there is a need now considering the current global scenario. But whatever you have, your Russian origin platform or some Western origin platform, you have to make your own material so that in a sense of cutoff in supply chain, your platforms would not get affected. Your operations would not get affected. That is the reason where we are -- there is a focus on that indigenization on the material, which we are importing today for existing platform also. So one is that new platforms are getting sanctioned by the government quickly and existing platform also is a need for indigenization of the raw materials.
Romil Jain, I'm sorry to interrupt you. I'll request you join the queue again for a follow-up question. Next question is from the line of Rohit Ohri from Progressive Shares.
Sir, a couple of questions. The first one being, you mentioned that you're working with some leading airplane manufacturer. And if we go to the industry, Airbus, Boeing and Tata consortium, they are looking at a lot of developments in the civil final assembly lines. So is it fair to assume that MIDHANI can play a role over there for these giants and big players?
Yes. In fact, you are talking about the Tata Boeing?
Yes, sir.
Yes. Tata Boeing is already having one facility in Hyderabad and they are working -- making some of the -- I think, assemblies or assembly for them in here. So we have also seen the -- we have explored the possibility of getting included in their supply chain. And we are already discussing with their team, and it is possible to enter in that domain also. And the -- there is no bar there for the civil or military. In fact, they are working all for civilian aircraft. So I'm sure that the aerospace industry is growing, MIDHANI will have the opportunity to enter in that area also. And in that situation, maybe our existing capacity may not be sufficient. We have to look for some more addition of the facility. But we have the technology for them. See whatever material is going for aerospace industry going for that military or civilian, material will be same.
Okay. So when you say that the order book for the export is going to be like 3x, 4x. So are you looking to close the year with export orders of more than INR 100 crores or something?
Yes, in the tune of that correct.
Is it more than INR 100 crores? Or is it...
I will tell you our target is to go for more than INR 100 crores. So we have right now INR 35 crores level already -- around INR 15 crores already we have executed. So we have -- as we are in discussion with the platform for another INR 30 crores, INR 35 crores.
Okay. Okay. So when we talk about the order book and the short cycle and long cycle what proportion of it currently is a short-cycle order book and what is a long-cycle order book?
Very few long cycles 50-50 percent. 50% is a long-cycle, 50% is short-cycle.
Okay. So that -- does that explain the reason why margins or maybe that you have cut down your guidance to somewhere like 25% EBITDA margin. Is that the reason that the short-cycle orders being at a little...
Short cycle order is better for the company because you have to get quick money and short cycle is better. In fact, if you are getting short cycle out of it is better for the company to performance. The only thing is that what type of margin you are booking orders. Order booking depends on that, what is your domain of working? If you are going in the international supply chain, that will be there. If you are also bidding against that converted bidding in the domestic tender also, there also the cost will come down. So the market is competing definitely. But the market opportunity is good. I say market is competing but opportunity is good. We have the good opportunity.
So that will get your volumes and sacrifice a little bit on the margin front is what you say?
Yes, yes. That...
Last 2 questions related to the raw material. I understand that there are certain difficulties. But was there a one-off in this quarter related to the raw materials where you must have kind of liquidated some old raw material or some old assets and because the percentage if you see of raw materials quite high for the quarter under review?
Yes, in fact, actually what our Director Finance is already putting this -- your answer to question -- so of your question. Because of our product has changed to the very high end. See earlier -- if I was selling a steel of, let's say, INR 2,000 per kg, now I'm selling a super alloy at INR 4,000 per kg. So definitely, the cost of your input material go up. So we have to go for nickel, we have to go for cobalt. We have to go for moly. We have to go for tungsten and these things are very costly in nature. Earlier, that product mix superalloys was very less for the MIDHANI. Now whatever superalloys we have done the last financial year, in that year, only in 1 quarter, we have completed, that's much quantity.
Okay. So going forward, this kind of the ratio for the raw materials will continue is what you're trying to say?
Yes. Raw material costs will be definitely the higher side. There's no doubt. We have to serve today's market because market is also looking for that type of alloys, which is difficult to get elsewhere.
So my last question is related to this inventory that we continue to have. Sir, I understand there are certain strategic materials, which is lying with us and probably, there could be an event where there could be certain orders, which might come, where we can use this strategic material. What exactly are these kind of orders? Is it related to HAL Tejas, helicopter or maybe due to some superconductivity materials? What are these orders, which if they come then our...
I'll just try to -- first of all, some of the word -- I'll try to answer you. Superconducting has nothing to do. We are not making any superconducting material. Super conducting material is totally different. And now people know in the world, they have come to the stage of making superconducting material. Coming to our [indiscernible] position, early as you mentioned about the HAL, the aerospace industry is responsible for keeping us more amount of inventory because they are strictly they are having a condition that you cannot use a recycled material for making any product. A product has to be made for aero engine or any moving part in the aircraft or even the other nonmoving also should have the pure raw material.
So whatever reverse we generate in the process, it will remain lying with us. So if we have an other customer where these type of commissions are not there, we can serve those things. So now we are trying to get some of the customers like that because either from the domestic or from international market, if it is there, we are trying to consume those things, those materials. But that on space will not allow to use recycle material.
So hopefully, these orders come maybe in the next one year or maybe 2 years. And hopefully, these inventories get liquidated and the question which keeps coming every quarter as to what we do with the inventory. That question will be eliminated, and there would be a lot of cash flow that will come.
Next question is from the line of Prabir Adhikary from Ratnabali Group.
Hello?
Prabir, you are not audible?
Am I audible?
Yes, audible.
My question is regarding this aerospace industry, I will say that...
Prabir, the audio is not coming clear. Can you please speak through the handset?
Yes. Is it okay now?
There is a bit of echo while you are speaking.
Am I audible right now properly, sir?
Slightly better.
Okay. My question is like you said that is material are segregated in 3 parts one is titanium, another is superalloys and one is specialty steel. I wanted to understand this aerospace market in India, you said that indigenization of these measures will give this company revenue stream. Right now, what is the -- if I consider give [ fighter jet ], so, out of say, for example, if it is INR 100 cost, -- so the aerospace material cost would be how much? And probably all these company -- all these components will not be able to manufacture in India because of the absence of the capability. So what is the capability we have in India, when we can manufacture part of that. So that is what I want to understand?
If I have understood correctly, you are asking first that what is the cost of materials used in a given jet engine. Is it correct?
Jet engine oil -- aircraft?
Aircraft per se is having a totally different material. Aircraft if you see aircraft is going today with the components. It is having the aluminium alloys. It contains many other things there. But what we are serving basically our material goes for -- mostly for the aluminium related products. And some of the also but.
Sir, Can you hear us? [Operator Instructions] Ladies and gentlemen, thank you for your patience. We have the line for the management reconnected.
The line for the participant dropped. [Operator Instructions] Follow-up question is from the line of Prabir from Ratnabali.
Okay. Sir, as you said that basically the aero engine market, which you're right now getting -- so if that person [indiscernible] So I'm saying that out of this, for example, if I consider this aero engine market is INR 100 crores, then what is our capability, Indian company's capability in that -- and in that capability, how much is cost of [indiscernible] and how much is private?
You are asking about the aero engine market potential?
Not market potential. I'm asking that if a market is INR 100 crores, then do we have the full capability to cater to full INR 100 crores, or, for example, only 60% of that market, we are right now capable to meet. So if we are...
So today aero engine market is a big market. If we are able to even sell the 2% also and just let me -- 2% also, it will be a very big achievement for us. Aero engine market is a very big market, I can tell you. So as I mentioned that, if it starts growing in the country, firstly, we have to also increase our capacity in the future. And probably, we have to look for that we can divert our business from other to aero engines. So aero engine in market is less [indiscernible] in the country now, very beginning asset. And one advantage with our company that we are in the aero engine material right from the beginning. So we have no problem in establishing our credentials in the market and our quality capability.
So that's what we have mentioned earlier, and we are picking up on those sides. So the first step towards that, we have tried to, I think, attach ourself or getting certified in the international supply chain with aero engine manufacturing company. So those things are getting certified means we are in better terms with the systems in India, we can directly supply [indiscernible] has already is trying to see that how they connect the engine and then we also have the platform also as planned. So those things also in the annual now. So we are trying to see that how quickly we can establish ourselves as aero engine material supplier company.
Next question is from the line of Amit Dixit from ICICI securities.
Sir, just a couple of questions from my side. Now this quarter, we saw a very good revenue growth, and you have mentioned that the order booking is also robust. So would you be willing to revise your guidance of 20% top line growth for this year, I mean, in FY '24?
We have not revised it. But definitely, we are adding more than 20%.
Okay. Sir, the second question is more of strategic one, given PM to visit U.S., there were 2 agreements under discussion pertaining to security of supply arrangement and reciprocal different procurement agreement. Now these agreements were essentially in light of what you discussed in the last call about you working with the U.S. aerospace company. So just wanted to understand where we are under these agreements? Have they moved ahead discussion going on? And how much we are involved? I mean, how much benefit we will get from these if they are executed?
You are talking about the agreement with like [indiscernible]
Yes, the agreements that were under discussion during -- when PM visited the U.S.
See what I said as I mentioned earlier also -- but since we are trying to enter in the international supply chain of the GE. So definitely when the GE is setting up facility in India, we will have a fair advantage and better wonders to tie up with their thing. But right now, they have no commitment as such but they're going to take MIDHANI for their all the requirements because this is all in the preliminary stage. But we are trying to see that how we can get qualified or getting established as a material supplier to the aero engine domain.
Sir, 2 more questions from my side. One is there was a media article suggesting that you have received orders for armor for the [indiscernible] MBT from [indiscernible]. So just wanted to get a sense of how much is this order and when -- the time line of execution.
We have not received the order. I don't know why it has come in the media. We are in the process of negotiating the orders because we are having the sole -- we are having the technology for that. So we are now in the process of getting that. But the value on all right now, I have not -- cannot tell you the figure. As and when it is coming, I'll definitely give the information. That what is the amount of the orders that we are in the process of [indiscernible]. So earlier also, we have supplied, earlier also, MIDHANI has only supplied that type of material to sort of armor at the tank.
When is it expected to be awarded a particular order?
Shortly, I am seeing this quarter. This quarter it'll be there -- by this quarter end -- end quarter end.
Okay. Sir, the last question from my side is that after the titanium capacity is commissioned, what would be the capacity mix between titanium, superalloys and the specialty steel.
Capacity-wise, it is a product mix. But what I say titanium addition will be almost 500 tonnes we can produce extra what we're producing now. So we'll be almost reaching around 750 to 800 tonnes per annum.
[Operator Instructions] As there are no further questions, I will now hand the conference over to Mr. Amit Dixit for closing comments.
Yes. Thanks for attending the call. And thanks for very patiently answering our questions. I will now pass on the call to Dr. Jha for closing remarks. Over to you, sir.
Okay. Closing remarks, I will tell our -- I'll ask my Director Finance to talk.
Yes. Thank you very much. Thank you all the investors for your valuable questions. MIDHANI is progressing every quarter-by-quarter. As you rightly said, you people said that the inventory levels, which we are very -- our concerns were already expressed. We are in the way of controlling the inventory. When we are producing high-value material and the present conditions of the increase in costs due to present international market conditions like Russia, Ukraine war, getting the material itself is a difficult situation, still we are managing through the prices have increased, but similar to our operational efficiency, we are able to maintain the margins as investors expect more margin, but the margins may not come in percentage terms, but we assure that in absolute terms, the margin will go up. That means EBITDA, net profit, the PBT and all will go up. And our plan is to more increase the revenue then concentrate on margin and utilize our facilities more at optimum extent. Thank you once again. Thank you all the investor. Thank you very much.
Thank you very much. On behalf of ICICI Securities, that concludes this conference. Thank you for joining us. You may now disconnect your lines. Thank you.