Pennar Industries Ltd Q3 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Karthikeyan VK - Suyash Advisors - Analyst : Yeah, good morning, Aditya. A couple of questions. One is in your US business, a, how is your supply chain structured, given the changes being proposed, especially with reference to Mexico, Canada and some of these other countries?

Question: Karthikeyan VK - Suyash Advisors - Analyst : Sir, I wanted to ask you how is your supply chain in the USA. organized? Do you see an opportunity to increase sourcing from India because of the changes proposed in terms of duties? And based on whatever data you have today, what would be the advantage that may accrue to you from this proposed change?

Question: Karthikeyan VK - Suyash Advisors - Analyst : So you're referring to both the engineered buildings as well as the tubes side?

Question: Karthikeyan VK - Suyash Advisors - Analyst : I was saying, you are referring to both the engineered buildings as well as the tubes businesses, right, in USA., I'm specifically referring to US-based? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 15, 2025 / 6:00AM, PENN.NS - Q3 2025 Pennar Industries Ltd Earnings Call

Question: Karthikeyan VK - Suyash Advisors - Analyst : Right. The other question, and I'll join back in the queue, would be in terms of -- I'm sorry, I lost track of what I was saying, so let me get back in the queue and not waste time.

Question: Karthikeyan VK - Suyash Advisors - Analyst : Thank you. Okay, yeah, well, please do join back when you have your question, yeah, sure.

Question: Rahil Shah - Crown Capital - Analyst : Sir, firstly, do you see any major impact on these US tariffs and duties that they have been imposing on our business, howsoever?

Question: Rahil Shah - Crown Capital - Analyst : Okay. And secondly, can you guide us in terms of your outlook for the next quarter and the next year in terms of revenue and EBITDA margins?

Question: Rahil Shah - Crown Capital - Analyst : And what will be driving -- which verticals are you like relying on heavily, which will drive this growth for you?

Question: Ashish Soni - Family Office - Analyst : Sir, regarding the solar business, so you are forming a joint venture, so is it like margin-accretive for us better than what we were doing earlier? I'm just trying to understand. And you said you might reduce it to 10% overall low-margin business, so do we want to like sell off to our joint partners? What's your thought process about other businesses?

Question: Ashish Soni - Family Office - Analyst : Correct. Correct.

Question: Ashish Soni - Family Office - Analyst : Yes. Other thing is whether you're going into solar cell or only modules. I'm trying to understand that also a bit because cell is a different ball game altogether compared to module.

Question: Ashish Soni - Family Office - Analyst : And you indicated your other low margin business you want to hive off like similar to this. So anything in progress or other low-margin business like water treatment chemicals or whatever right now in works, I mean, you might do something in next two, three quarters?

Question: Ashish Soni - Family Office - Analyst : Sir, last question. CapEx plan for next year? And I think land sale do you want to consider that in the next 2, 3 quarters, something?

Question: Ashish Soni - Family Office - Analyst : And land sale, and that's another question I asked?

Question: Ashish Soni - Family Office - Analyst : Thanks and all the Best.

Question: Vikram Suryavanshi - PhillipCapital (India) Private Limited - Analyst : Sir, just a quick question, sir. What would be our long-term debt now? I think total is around INR1,195 crore.

Question: Vikram Suryavanshi - PhillipCapital (India) Private Limited - Analyst : 237?

Question: Vikram Suryavanshi - PhillipCapital (India) Private Limited - Analyst : And inventory would be how much?

Question: Vikram Suryavanshi - PhillipCapital (India) Private Limited - Analyst : Inventory? Because I think the last few...

Question: Vikram Suryavanshi - PhillipCapital (India) Private Limited - Analyst : And I missed the total working capital days.

Question: Vikram Suryavanshi - PhillipCapital (India) Private Limited - Analyst : Understood. And this solar, sir, what I understood because I clearly got our strategy to monetize the assets which are not focused area. But as a JV partner and as you rightly said, it is a scale business. So if that JV has to scale up, then there will be also capital commitment proportionally required from us as a partner or is there any way where we may not be investing or how that arrangement is there or will that Zetwerk will act as a supplier to many other companies where it may not scale up beyond a point. So it's just I'm not able to get a clarity in terms of when it is a scale business, how capital commitment will be from our side going forward?

Question: Vikram Suryavanshi - PhillipCapital (India) Private Limited - Analyst : Yes. And in PEB, last quarter, we have seen a couple of execution delays from PEB business side. So how outlook is? Are we seeing that picking up or still there are some education delays? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 15, 2025 / 6:00AM, PENN.NS - Q3 2025 Pennar Industries Ltd Earnings Call

Question: Vikram Suryavanshi - PhillipCapital (India) Private Limited - Analyst : Understood. And last question on engineering business, what was the revenue for 9 month, particularly what we do outsourcing for USA in terms of design engineering?