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Ladies and gentlemen, good day, and welcome to the Triveni Turbine Limited Q1 FY '24 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded. I would now like to hand the conference over to Mr. Richard Barar from CDR India. Thank you, and over to you, sir.
Good day, everyone, and a warm welcome to all of you participating in the Q1 FY '24 Earnings Conference Call of Triveni Turbine Limited. We have with us today on the call Mr. Nikhil Sawhney, Vice Chairman and Managing Director; Mr. Arun Mote, Executive Director; Mr. Lalit Agarwal, Chief Financial Officer; Mr. S.N. Prasad, President, Global Sales Products; Mr. Sachin Parab, President, Global Sales Aftermarket; Mr. Rui Chandna, Investor Relations and Value Creation, along with other members of the senior management team. Before we begin, I would like to mention that some statements made in today's discussion may be forward-looking in nature and a statement to this effect has been included in the invite, which was mailed to everybody earlier. I would also like to emphasize that while this call is open to all invitees, it may not be broadcasted or reproduced in any form or manner. We will start this call with opening remarks from the management, following which we will have an interactive question-and-answer session. I now request Mr. Nikhil Sawhney one to share some perspectives with you with regards to the operations and outlook for the business. Over to you, sir.
Thank you very much, Rishab, and a very good afternoon to all our participants on this call. It's with great pleasure that I have to share with you the results for Q1 FY '24. And as you may have seen from the release to the stock exchange that we've had another record quarter. In the first quarter of this financial year, Triveni delivered not only a record turnover, but also record profitability, both at EBITDA as well as PBT levels, but also a record closing order book. The momentum in the revenue growth has remained strong during the quarter with a 25% growth in turnover over the previous quarter of the corresponding previous year of the corresponding period. The company has made a concerted effort over the last few years to expand its international presence as well as enhance its aftermarket portfolio, which you could see is already paying fruit in our execution. The efforts continue to yield results, and the same was witnessed during the quarter, with EBITDA and profit after tax, registering higher growth of 50% and 59%, respectively, as compared to the previous period of the ops -- compared to the previous corresponding period. Robust order booking of INR 4.53 billion was what we -- was our order booking in the first quarter of financial year FY '24, an increase of 26% year-over-year, and that led to a record outstanding carryforward order book on the 30th of June 2023 of INR 14.05 billion, an increase of 31.4% year-over-year. Investments and cash -- including cash at the end of the quarter were at INR 7.47 billion, an increase of 11.3% from March 31, 2023. On the ordering and order book, we are enthused by the order booking in the international markets during the quarter. The team has done a fantastic job in terms of reaching out to newer customers in new geographies and in terms of being able to penetrate into newer markets as well as get more orders from existing customers, which already enhances our already high repeat customer base. The international market during the quarter grew by 128% and contributed to more than half -- actually, 53% of the overall order booking. The progressive improvement bodes well for future sales, but a healthy mix uplifts the profitability along with creating more future business opportunities for the company. The product demand remains robust in both the domestic and global markets. Our wide geographic reach is captured in our order booking in the quarter where we received orders from Europe, Southeast Asia, Africa and the Americas. Both industrial and API drive turbines contributed to these orders. The product order booking for the first quarter increased by 20% year-over-year to INR 3.08 billion with demand from a diverse set of industries such as sugar, distilleries, steel, independent power producers or add to name a few. And despite the macroeconomic concerns, the company imposes of a robust inquiry pipeline, which increased our global level by 22% year-over-year in the first quarter with a noticeable improvement in the domestic inquiries as well, which improved by over 56% in the current quarter, coupled with contribution from orders in the SADC region for servicing utility turbines, order booking for the aftermarket segment grew by 43% year-on-year to INR 1.46 billion during the first quarter of FY '24. As the end of the quarter, the company had a record closing order book, as I had already said, on INR14.05 billion, an increase of 31%. Export sales grew 88% during the first quarter and the contribution to overall sales in stock to 48% as compared to 37% in the previous corresponding quarter. Our aftermarket business has been expanding in series through a wider array of customer solutions going beyond industrial steam turbines to other rotating equipment, while expanding its global footprint. As a result, during Q1 FY '24, aftermarket sales grew at a remarkable 91% over the previous corresponding period and contributed to 34% of total sales, up from 26% at the same time last year. The segment has been focusing on driving growth in the higher value-added components such as refurbishment and garnered good success in our relation and efficiency enhancement orders in the quarter under review. As far as technology and R&D goes, the bentonite itself as being a technology focused and a technology-first company. And in that regard, the company's global focus and outreach are evident in its constant efforts to file for patents and industrial design registrations in vales international jurisdictions, while simultaneously expanding its intellectual property portfolio in India. The company has filed in excess of 330 IPRs, and it continues to enhance its product portfolio and research efforts on a quarterly basis. As a forward-thinking organization Triveni remains committed to spearheading this energy transition through research and development, and we believe these efforts will continue to drive sustainable growth for the years to come. This includes research not only on our current range of products to enhance efficiency and to cater to niche applications, but also in new areas which we've talked about in the past, such as our research into carbon dioxide based applications. As we look forward, as I've already indicated, our inquiry book remains robust, which gives us visibility into orders -- order bookings in the next several quarters. The team remains committed to continuing the growth path that we had in the previous year. But this is all backed by the market segment in which we are -- in which we play. If we look at it from the perspective of industrial heat and power solutions and decentralized renewable energy solutions, this is the name of the game as we speak today. Of the total global energy -- primary energy demand, over 50% of demand comes from the requirement of heating and cooling, and we believe that 25% of that heating and full requirements comes from industrial uses, which is exactly the space in which Triveni Turbine provides its solutions. So with that, ladies and gentlemen, I'm happy to take questions.
Thank you very much. Ladies and gentlemen, we will now begin the question-and-answer session. [Operator Instructions] The first question is from the line of Ravi Swaminathan from Avendus Spark.
Congrats on very good set of numbers. My question with respect to the API business. What is the progress there in terms of reach, in terms of customer reach and in terms of that a proportion of the overall business, where do you see it over the next 2 to 3 years, if you can give more clarity on that in...
So firstly, thank you. Thank you, Ravi. Yes, we've had a very good quarter, and we aim to sustain that for the year as well as in the future. On the question of API, I'm going to ask my colleague, Mr. S.N. Prasad to give some visibility. But as you know, we don't provide numbers around our visibility. Suffice to say that, as you know, capital investment is lumpy on a quarterly basis. But when we look at it on annual, say, there is going to be sufficient and substantial growth. As we've indicated in the past that we had a negligible market share and we aim to improve that going forward. Our certain endeavor in the API market are not only for drive turbines, which have direct applications in terms of driving equipment such as pumps, blowers, compressors, et cetera. But it's also to provide power solutions, which are with API requirements. So Prasad, can you provide a little bit of visibility as to both how we see the API market developing in the domestic and international markets and our reach. And what constraints you may phase?
Yes, yes. So API market-wise, today, we have a very strong inquiry pipeline. Yes, we are quite positive the way how the inquiry pipeline is growing. And today, acceptability wise, yes, we have accepted in as an approved vendor across the globe. And from many regions, yes, we are participating as our Vice Chairman mentioned, it is not only drive turbines. So we have an inquiry pipeline even on a power turbine than the power generating API machines. So that way, based on inquiry pipeline, yes, we are quite confident that things are moving as we anticipated, and we are on the right track.
Okay. My question is -- I mean, second question is with respect to the size of the market opens -- how much could it be from [Indiscernible] take, how much would it be exposed or be released or something on that sort? Any sense on that?
Yes. So the market size estimates, while right now, we are into the market where it is a drive and power turbine. So that's probably -- our line we'll be able to share that, I think still some of those data points, we feel that a little confidential at this point of time.
And my third question was with respect to the order booking. The domestic order booking has been kind of slightly on the software side. Is it something that collaboration and the overall tone in the domestic CapEx environment is still strong, and this might get commented in the subsequent quarters. Any sense on that?
Not exactly [Indiscernible] we recognize orders in our order book when we have received advances. And of course, we do a [Indiscernible].
Sir, this is the operator. I'm sorry to interrupt, but there is like disturbance, sir, your audio are clearly audible? Sir, just allow me a minute while I reconnect you. [Operator Instructions] Over to you, sir. The question is from the line of Mr. Ravi Swaminathan...
Yes, I remember the question. I apologize for that, Ravi. But on your question on the volatility on domestic order booking, as I was suggesting before I got cut off that quarter-on-quarter, you will see certain variations, but the general trend of both the size of the market, the domestic market as well as our order booking in the domestic market will improve. So we are quite confident of our participation in our market share in the domestic market as well as the growth of the domestic market. In Q1, the total domestic order booking was in excess of INR 400 crores, and we believe that Q2 will present a much better figure.
The next question is from the line of Harshit Patel from Equirus Securities.
Just continuing from the previous participant's question. So I think a couple of quarters back, you have mentioned that the metal segment has been a bit soft. And now in this quarter, domestic order intake, you see that there was a decline at least on the product order intake. So could you give a sense of how the metal segment is performing. So is it that the CapEx has slowed down a bit and therefore, there is a little bit softness in the demand?
No. Actually, I think it's both from an order booking and inquiry book perspective. And as we look at Q2, the Metals segment seems to be quite robust. I'll ask Mr. Prasad to give a little bit more visibility around it. But surprise -- but you see large integrated steel manufacturers are really not doing much of the infield brownfield expansion. It's more of the smaller rolling mills, Peenya Unit, et cetera, and the small integrated facilities that are expanding. So Prasad, if you can provide some visibility.
Yes, sir. Yes. So coming to the metal segment, especially our presence is there in Sanger and Tiguan re-rolling segment where, again, waste-heat recovery is one of the increasing trend in that segment. So that inquiry pipeline as well as order booking from this segment. Now we have not seen any decline in that and the inquiry pipeline is quite strong because as these expansions happening in the Peenya plant we are getting a traction of the wasted recovery opportunities.
Understood, sir. Just a follow-up to that. What percentage of steel or cement capacity in India has already got WH installed? And where do you think that net breach less in next 3 to 5 years?
As we've said in previous calls, typically, when cement capacity is established, we see recovering capacity is not ordered at the same time, while for steel, usually, it is. So when you have expansion of capacity on the sales side, you do achieve then have incremental demand on waste recovery. And so therefore, the growth of the waste recovery market for the Steel segment is directly proportionate growth capacity in that industry in terms of output. At the same time, from the cement side, we would imagine that approximately 15-odd percent to 20% of the cement capacity currently as we see recovery installed. But as you would know, the push towards being more energy efficient and being more aligned towards decarbonization is spurring people to install waste sheet recovery in all sectors. That, coupled by higher energy prices makes it very economic for companies to go into these investments.
Sure, sure. Sir, my second question is on South Africa region. I believe last year, we had achieved almost 15% to 20% of our overall aftermarket orders from this particular segment from those large utility level customers. So could you give a sense on has there been any further progress on that? Any more customers we have been able to capture any incremental orders from the same customer?
I don't want to get specific about particular order. But yes, we did report it as a separate item just because it is material and up also reported in that manner. Also, the cost of that particular order we were put in a separate line item in the P&L so as to give better visibility around the overall raw material consumption of the business and also to provide a little bit of focus on how we are controlling costs for these particular orders. But as you rightly said, the segment is large in terms of utility turbines, and it provides us with capabilities and references for us to use in many different geographies. Sachin Parad is our President, aftermarket. I'll just ask him to give a little bit of visibility without being too specific in terms of which other orders is [Indiscernible].
Yes. To answer your question, the particular market that you mentioned, we are having consistent business growth in that market. So we are seeing a good level of inquiry pipeline. There are increased customers also from the same geography. Besides this has helped us create references for other geographies. And we see healthy inquiry pipeline build up in other geographies with similar nature of business.
The next question is from the line of Amit Anwani from Prabhudas Lilladher.
Congratulations for a good set of numbers. My first question is on the exports market. You did mention that there's a robust opportunity, and we are also focusing on increasing orders from existing customers and penetrating into new markets. Just wanted to understand broadly in granularity, if you can, like which markets we are targeting to penetrate and with set of segment customers or products we are looking for better portion in coming quarters?
Okay. As you know from a -- that we've already said that our internationalization effort has not been complete or something that we need to put a lot more focus on. But despite that, where we do see inquiries and visibility of orders coming from is in segments around renewable energy power generation both in terms of feedstock of biomass or with solid municipal waste incineration but also we see recovery. And this is -- so segments like this are very pronounced in areas like Europe, which has a very strong capital outlay towards the energy transition. Areas such as Southeast Asia, also a big focus to us given the growth that is happening in fixed capital formation there. And that would -- that is more from traditional industries as well as certain renewable energy power generation based on biomass. But for us, a great focus is going to be in Americas over the next several quarters just because our penetration level in that market has been limited. And as we look forward, the U.S. market and North America, which has, I don't know, in excess of $25 billion, $26 trillion of economic output has a huge requirement in all segments of growth. Their own push towards the Inflation Reduction Act seems to be spurring fresh capacity ordering for renewable energy power generation, which is really the product that we supply. So from a global perspective, the climate change mandate seems to be benefiting us in our segment of operation.
Right. I also wanted to understand on the order intake side, you did highlighted, we are seeing witnessing a strong inquiry pipeline across sugar that [Indiscernible] steel and cement. So any trend you are witnessing any particular pockets where we are seeing very strong relative inquiries and any pocket that with a utilizing others or something like that?
In the domestic market, what we can say is that there hasn't been a sudden spurt in ordering. And so there hasn't been a sudden growth, meaning multiple times, ordering, which we may have seen in the past. And so we see the growth in fixed capital formation to be much more sustainable way forward. large industry has not really been ordering to a larger extent. It's been more focused on small, medium enterprises. And so we see, as India has to add basic capacity from everything from steel demand, paper -- every commodity in the near future, then we will be able to sustain this growth. And I think that it's a much better thing for the industry in general, both the capital goods industry as well as the end user industries because they will have a more gradual capacity enhancement. So when we look at it, of course, in specific industries, they change from quarter-to-quarter. But in general, all sectors seem to be represented in our inquiry book.
Great. So is it fair to assume that will still be continuing with 25% plus growth for the next 2, 3 years and similar margins or there's a scope of level employment...
I hesitate to give numbers, but a couple of years ago, we were asked and hesitantly, we gave a number of growing at over 35% for FY '23 and FY '24. As you know, our results of FY '22 was already significantly better than that and Q1 of FY '24 is already significantly better than that as well. So we're quite confident of our growth. The main thing is that the growth shouldn't come at the cost of our margins. Our margins are something that we have consistently said that we'd like to have a PBT margin in excess of 20%, which is something that we will maintain. And with -- while maintaining those margins, we want to actually drive growth as much as possible. And that will cover all segments. New product growth new product sales, aftermarket segments, both from expanding our traditional shares and servicing offering, but also our refurbishment offerings to new areas, in new growth markets and then establishing newer product markets for such as API, et cetera. So all in all, I think that we feel quite confident given our inquiry book that we will be able to sustain order booking and our order booking ultimately reflects on our revenue. And as you know, our order book gives us approximately 9 to 10 months of revenue. And so we do have a significant amount of book and bill within the current year. Pretty much all of Q1 comes into billing of our current financial year and sales go all the way up to possibly Q3 even part of Q3. So there's a lot of book and bill, which will come into revenue financial year, which is over and above the pending order booking -- at the beginning of the financial year.
Right. Lastly, on this asset just need more clarification. Last year, we booked about INR 87-odd crores as a subcontracting expense for SABC, and that impacted our margins by 140,150 bps Will this be a recurring expense in coming year? And any bulk-up number for FY '24, you would like to indicate?Yes. I don't know if you actually gave a definitive cost or a number on what we incur. But we did say this is a large value order, and we were representing it definitely because it not only allows us to enhance our service offering, but also expanded our reach into a specific market. We will continue with this order. And hopefully, we will be expanding the scope of it also, which should have impact on margins positively. But all in all, this -- if you look at this particular order in this entirety and the way that it impacts entries margins, we're still comfortable with it. It's a very comfortable margin and something that we feel that allows us to participate with our mandate of insuring that we have EBT in excess of 20%. But having said that, our order book, as you know, for the previous year, has a higher percentage of aftermarket as well as international orders as part of it, which goes lend to a certain degree of confidence that we will be able to sustain margins, if not improve them.
The next question is from the line of Ashwani Sharma from ICICI Securities. There seems no response from the current participant. We proceed to the next question from the line of Bhavin Vithlani from SBI Mutual Fund.
I joined a little late pardon me if this was asked. So on a trailing 12 months basis, what was the size of market in domestic and international? Or if you could share what has been our market share numbers domestic as well as international?
Our market share numbers are quite good, they still maintain. Our international market share has gone up, obviously, because of our increased order booking. But I did allude to the fact that the market in India has grown somewhere in the region of about 30-odd percent in Q1 at 35%. But that really shouldn't be looked at from an annual basis. We think that the annual market growth for inline turbines will be somewhere in the region of about 25-odd percent this year. The international -- at the same time, our inquiry book has increased by about 56% for the domestic market in the first quarter. In the international market, and overall, our inquiry book has grown in excess of 22%. That's driven by the fact that the international market is, of course, a much larger percentage and larger sizes of our inquiry date. And so we're quite comforted by the fact that both the inquiry books have grown. And so as you know, in the international market that provides us with visibility into where we would be able to quote and our percentage of winning orders is much better once we actually have that visibility. So I think that without answering your question in terms of specific numbers, we do have growth in the market, and we do have our participation at a high level.
Sure. I mean, I know you mentioned, but indicatively, what could be our market share in the international, not this quarter, but if you take on a 1-year basis.
We have to look at the constraints of the fact that we don't participate in the Chinese market or the Japanese market, which are both large market because China being very large. We have limited presence in the United States. And so when we do look at market share with all the constraints put out as well as the fact that there is no formal reporting of orders, and so we're reporting it based on the orders that we are seeing, we would probably have a market share somewhere in the region got 25-odd percent. But that's, again, with the constraint of the fact that these are no orders that we are seeing. We may not be seeing a lot of the market as well. And this is excluding China.
I understand. Could you give us some color on headway into greater than 30 order wins and...
Of course. We started distinguishing below 13% about 30 as you would have noticed in our calls. But we have good headway. I'll ask Prasad to give you some direct visibility on where we're seeing this both in the domestic and international markets and the success of Triveni Turbine has had. Prasad?
3200 megawatts, as our Sawhney mentioned that there is no separate treatment we are giving. But any option, the question is specific. Yes, 3200 megawatts, we have a good inquiry pipeline from domestic as well as international pipelines we have. So these 3200 megawatts is specific areas, sometimes what happens, say, 29 megawatt inquiry suddenly will ship to 30.1 megawatts. So that is the reason we don't track. But otherwise, the inquiry pipeline is good, and there is an order booking numbers also got added into that.
And we are getting orders, you should mention that we're getting orders in this space, both in the higher ranges of that segment that you talked about, Bhavin, and we're confident that we will be getting more in this space as we go forward.
The next question is from the line of Himanshu Pate from OPM.
Congratulations on great set of numbers. I had a question which is, we stated last time also that our market share is around 24% to 25% in the markets where we are present, okay, what we are seeing currently also. And we are not present in China and Japan, okay? Why Japan? What are the challenges in Japan market and its size? Can you elaborate on that?
Historically, the fact is the Japanese have bought Japanese equipment. And it's been both a question of specification and standardization and documentation as well as other standards that they have. And it's something that we believe is not completely necessary for us to go into for the market itself, but they are Japanese EPCs with operated around the world who we do partner with. On the Chinese market itself is very [Indiscernible] the standard that they use specific to standards that only Chinese domestic manufacturers can comply with.
Okay. And see this refurbishment business and aftermarket has been growing. And we had a thought that once we establish ourselves in refurbishment and aftermarket, we would also start getting more new product orders also with presence in those markets. Is the strategy working? How successful are we with that thought process? And what is the way forward? Because 24% to 25%, can it be 33%, 34%? And -- or you need to add some -- any more thoughts on that of how to increase the market share?
No. Our attempt is to win every order. So don't get me wrong. The fact is that our first attempt is to grow the market, our visibility into the market. And so you're partly right by the fact that our refurbishment initiatives have led to greater visibility, which is also most definitely leading to product orders. But the product orders are also coming because over the last couple of years, the market has also expanded both from a perspective of fixed capital formation in industry, but also renewable energy power solutions. So both have led to growth. And our market share is something that there is a time lag, as you would always imagine, between getting orders and refurbishment executing them, building credibility and trust in a specific region and then getting product orders. This is not a quarter-by-quarter type of confidence that he can give it happens over a longer period of time. But suffice to say that, yes, the strategy is working. But we need to do more. So there's more to do. There's more that we need to do to internationalize is more that we need to do to be closer to customers. There's more that we need to do to enhance our product platform and technology. And so we're happy on capabilities on the manpower side in terms of being able to -- in terms of adding more people to aid in this endeavor.
Okay. And this refurbishment market would be a multiple of what the new product market will be overall because product after...
Refurbishment as a business means third-party services. And for us, that's a third-party rotating equipment services. It's sort of like it's a very understandable market, which is massive. You could consider everything from utility turbines to compressors to gas turbines, which can technically be under the mandate of our business. So this is a market share and the sales is meaningless for us to consider. What is more important is the capability that you have to execute these orders, how close you are in terms of both proximity as well as technological alignment with customers to be able for them to have the confidence to place these orders on you. And so we have to enhance our capabilities, which is not always in the physical asset side, which on the refurbishment side, it has a play not in terms of having people physically present as well as technology and other aspects of branding as well.
No, see, my question was, is the refurbishment product or the size of the business opportunity significantly larger than the new product sales also globally or...
In fact, that's what I'm trying to say. The fact is it may be thousands of times larger hundreds of times larger.
The next question is from the line of Vimal Sampath, an individual investor.
I joined a little late. So 2 things I want to understand. One is you are talking about future focus in U.S.A. So is it for product also or only for refurbishment? And second thing, like South Africa, we are very successful. Do we have in the immediate future, say, next 1 year, have you finalized any other location for establishing a setup?
Very good questions. Very frankly, the Board has not taken any decision on any specific capital investment anywhere. But as management and as a Board, we do continuously look at the roots for international expansion for the company and internationalization of our efforts is something that is paramount in all management within Triveni Turbine. The U.S. as well as other markets are focused for us. I just pointed out that the U.S. in specific because it's a very, very large market. And it has many good thing to infer it at this current point in time. As you would imagine, and as I've said, our installed base in the U.S. is really not very large. And so therefore, any entry strategy like we did in South Africa would base itself on refurbishment, but the premise would be that product sales would follow very quickly also. Does that answer your question?
Yes. And I mean, other than U.S.A., which are the -- I mean Europe, we are concentrating or we are content on that Africa, we have Asia?
I mean the market -- the global market is very large, as you imagine, and there are many areas that you've already spoken of, which are the diary areas for us. Given the growth that we have as a company of 45-odd percent on a quarterly basis, and there is a limit to what the management can do. And so we have to be more focused. And so right now, we evaluate many different markets. The question is how quickly will those translate into results is what is most paramount. And right now, we have no CapEx to...
Right... As a shareholder, I'm very happy with the decisions you are taking very conservative and very focused. And just one last question that now again, our cash reserves are building up. Yes., So any...
Last year, we did a buyback, and that was something that was appreciated by shareholders. We did receive comments on that. Currently, as I pointed out, our cash reserves somewhere in the region have got INR 747 crores. But as a company that operates on negative working capital, we have about INR 400 crores of customer advances as well. We take a prudent view that right now, really cash isn't a problem. We have a dividend policy, which aims to or a payback policy to shareholders, which we aim to maintain to ensure that we are giving a percentage of significant percentage of our profitability back. And we aim to maintain that. There's no change in policy. Buyback or how the board will have to decide what is the route
The next question is from the line of Amit Mahawar from UBS.
Nikhil, I just have 2 questions. Prasad, did you say FY '24, we expect around 25% growth in above 1 megawatt market domestically?
Hi, Amit. No, I said that we're looking at the Indian market growing over 25%. Revenue growth is as well -- our order book is out there for you to see. So you know how much we be executing.
Sure. Fair. And second is on after sales. It's really heartening to see after a couple of years, the run rate has changed to almost double quarterly after sales orders. What is the current market share we will be having in the global aftersales market? And what percentage of total business is in Triveni Turbine.
Well, as you know, global aftermarket is not a market that we track from a competitive viewpoint because very frankly, from our own installed base of spares and service, we do tend to provide solutions to -- on the aftermarket time to a majority of these customers on nearly all of them. So that is not a concept of market share, but it has been growing given the fact that you do have an increased market size -- install base. So as installed base grows the sales and servicing grows by itself. Refurbishment, which is our third-party service offering as a percentage of total aftermarket sales has also been growing, as you would imagine, certain orders such as what we took in the South African development region, et cetera, has spurred on the refurbishment business, which we always felt was a growth area for the company because of a really undefined and a very, very large end market. So we aim to continue with that strategy of increasing refurbishment as a percentage of aftermarket. At this point in time, we really don't split the data to give it to you, but it is substantial, and we aim for that to grow very rapidly. Sachin, would you like to add anything there I guess, Sachin is not there. But does that answer your question, Amit?
Yes, that's helpful. I mean maybe -- so what's the sales force and the employee base outside India for us, including the service network?
We don't actually give that if that fit. But it is something that we -- that is what we will be growing quite substantially going forward. That is our focus, both in terms of having Indiana citizens but also extract.
The next question is from the line of Mahesh Bendre from LIC Mutual Fund.
Most of my questions have been answered. Just one question. So what kind of growth we anticipate in the international market for this year?
Unfortunately, we don't give specific data. But as you see the track record of what we have for Q1 is something that we would aim to maintain. We see the international market adding substantially to our growth going forward. But having said that, with 1 month of Q2 having gone by our product ordering and aftermarket ordering in the domestic market has also been very good. So both seem to have a market which is acceptable to our product offering and service offering. Just to give you a little bit of idea as to why the market exists. And it's really understanding that the concept of industrial heat and power is a distinct segment, which really cannot be disrupted by wind and solar because to produce heat through electricity is a very expensive form, and so we tend to look at primary energy consumption on the basis of exodus. And if you look at it from a global basis of about 600 exajoules of primary energy demand, India currently has a demand of somewhere in the region about 36-odd exajoules as of 2022. And if we see that going to about 50 exajoules in the next 5 years, what you find is that, that remaining 14-odd gigawatts, approximately 60% of that is going to be in the need for heating and cooling. And so electricity really is in the current form of doing it. And so we find that we're in the right space to be able to provide this solution to both domestic and international clients. And this is only reinforced with the push towards energy transition and climate change.
So on quality perspective, is it fair to assume that growth in international business could be faster than the domestic?
Yes. We believe that, that would be the long-term trend for short. Quarter-to-quarter, it will depend on where orders come from, but the longer-term trajectory is definitely that international as a percentage of sales and order book will be higher for Triveni Turbine. Well, this is not to take away from the fact that we aim to maintain our market share in India. We are just being conservative, and we think that in the Indian market will grow at a steady pace rather than growing very quickly, has happened in the 2008, 2011 time.
My apologies, Triveni Turbine backlog is back online.
Okay. The next question is from the line of Mythili Balakrishnan from Alchemy Capital.
A couple of questions here. I wanted to check with you on your market share in India. And also, like what are you seeing in terms of the competition in this particular market?
So our market share historically has been very good. We've reflected this as a duopoly market in a majority of customer requirements and applications. There are a number of players in the market. The competitive intensity is something that is the same. We haven't seen a change for a number of years. So we're quite comfortable with where the competition sits. There is intense competition won't yet be wrong. The fact is that price competition directly as the market expands becomes a little bit less. But there is the fact that we have -- and I think for full year financial year FY '23, we had a market share somewhere in the region of about 45%, 50% for the entire market up to 100 megawatts, historically in the market below 30 megawatts at a much higher market trend, and we're able to continue with that trend. We don't see things changing fundamentally.
Okay. And also in terms of this API business across both the ones that you mentioned, Power and Drive, could you just help us understand how much percentage of your order book is sort of coming from this kind of a business and also some of the newer products that you had mentioned earlier, which is your carbon dioxide cool turbines, et cetera?
No, the carbon dioxide is more research right now. We'll have to provide some more visibility in the next several quarters as to where that business is and how we see our strategy playing out there. We're very confident that has a distinct value proposition and something that can be taken to market quickly. On the API demand as a percentage of sales, unfortunately, we don't break that out, but suffice to say that it is a large market, and it's a market that we have dedicated focus on. We think that this is a market of high specifications. And so therefore, it's the market that allows us to exhibit our true characteristic as a technology provider, and it is, of course, therefore, a higher-margin product. So we're quite happy with that space and something that Prasad answered a little while ago when another participant is as the same question.
Would it be, say, 5%, 6% of our sales currently? Or would you be giving...
Yes, it will probably be single digits.
Indeed, got it. And my last question was on the CapEx, which is that we added 1 day, I believe, on our Sompura plant. But given the kind of demand that you're seeing, et cetera, are there plans to sort of add more or look at increasing capacity further?
Let me ask Arun Mote, our CEO, and [Indiscernible] to answer that question, Arun?
Yes. You're right, we added one extra way at our new facility at Sompura. It is fully operational. And it can cater to about 300-plus turbines very easily, and that is also more flexible. So, as far as the assembly capacity is concerned, we don't expect any issues. And we have our other subcontractors and associates, which are also augmenting their capacity in line with this. So capacity will not be an issue for many coming years, at least for 5 years.
Got it. And in terms of the this year and the U.S., at least for the next 3, 4 years, we can expect only to have maintenance CapEx on as far as the company?
Yes, there will be no major CapEx there unless we get into some new product line, which we start safe today, there would be no major CapEx.
Ladies and gentlemen, that was the last question for today. I would now like to hand the conference back to the management for their closing comments. Thank you, and over to you all.
Thank you very much. Thank you, ladies and gentlemen, for attending the Q1 FY '24 investor call for Triveni Turbine. We've had a very good quarter, and we aim to sustain this growth. Thank you.
Thank you. On behalf of Triveni Turbine Limited, we conclude today's conference. Thank you all for joining us. You may now disconnect your lines.