Dee Development Q4 Earnings; Net Profit Declines 11%, Revenue Up 26% | CNBC TV18

Hinzugefügt: 2026-05-21

[00:00:07]Welcome back to Midcap Radar. Well, the market seems to have taken a a turn for the better. Quite a few of the stocks in the broader market seeing some buying emerging and Nifty once again is back in the green territory. But as promised, we are now joined by Mr. KL Bansal, who's the CMD at T Development Engineers.

[00:00:24]Remember, the company reported its numbers a while ago. Stock higher by close to 4%.

[00:00:28]Thank you so much, sir, for joining us.

[00:00:30]Well, first question in terms of FY '27, can you give us a guidance as to what is it that you're targeting? Number one in terms of top line, EBITDA margin, as well as bottom line, given all of the disruptions you've seen in Q4.

[00:00:44]Thank you so much. First of all, I will just say that, you know, if we look back, we feel quite satisfied that, you know, whatever numbers we have been telling all across our calls and everything, we have been able to live up to all those numbers. And as far as FY '27 is concerned, you know, we have a clear target of around 1,500 crores in terms of top line, around 19.19% plus EBITDA margins.

[00:01:10]So, that's our basic target for the coming year. So, if you need anything else, please let me know.

[00:01:16]Yes, so we do need something else on the margin, especially 19% is what you're targeting for FY '27. You ended FY '26 at around 17%. What are these margin levers from your end? 200 basis points are at a time when we are seeing some disruptions come by in the Strait of Hormuz and Middle East as well. So, what makes you so confident about that?

[00:01:36]I have been telling earlier also here that we are not very much affected from the geopolitical situations prevailing at at this particular moment because most of the sales or most of the revenue which we will get is either from the domestic sector or from the export sector which is going to Canada and other places. So, we are not supplying many things or much volume to the Middle East market. So, we feel we are not going to be affected at all because of geopolitical conditions in Q1 also. And we have all the material availability in our shop floor for Q1 as well as Q2 also. Hence, I'm telling it again that we do not feel see any reason for that.

[00:02:21]And you know, as we have been telling earlier about our Anjar plant has fully come on steam.

[00:02:27]Our seamless plant has come on come fully on steam. We have been able to commission our pallet plant in power in our power plant also. So, you know, all these factors are going to add to our EBITDA margins. And we are going to get huge operational leverage from our Anjar facility. So, that's where that's how you know, our confidence is coming.

[00:02:48]Okay. Mr. Bansal, along with the results, you've also given you know, one particular update to the exchanges regarding one of your subsidiaries in Thailand. You've said that you've got a very large order from an international EPC company. You've said that you cannot disclose the name, but can you give us some details as to you know, what will be the likely size of this particular order, from where will you be supplying, and what will be the margins you will be working with for this particular order?

[00:03:16]You know, this is this is from a US-based giant. We have been telling this in all my calls that we are discussing with this company for capacity reservation. And now, yes- today only that agreement has been signed that we are blocking our capacity for almost 60% for that particular customer only. And if they are not able to feed us, they will give us the idle charges. So, it's a very very big positive as far as our Thailand unit is concerned. And you know, till 2029, the visibility is now very very strong, you know, for Thailand in particular.

[00:03:48]And you know, to have to meet our top line of almost around 2,500 crores which we are telling that we shall achieve by FY30. So, that's going to help us a lot.

[00:03:59]So, you know, since it's capacity reservation, we have we are bound to get all the orders, you know, which they're committing. And it's very very large volume circle. So, what a sense of the a sense of the top line you will get from this orders and the margins you will enjoy?

[00:04:13]Since this is extended from 27 to 29, so you know, every year we are expecting above 120 120 to 130 crore just from this particular customer from for Thailand only. You know, apart from this, we will get some other customers also. As the growth potential for Thailand is well established and absolutely sure. Okay, so that's about Thailand. Just coming back to the Anjar pipe plant, can you give us a sense of how much are the revenues going to be from there?

[00:04:46]How much did you do? I'm just trying to get a sense of those numbers. 240 crore rupees is what you had guided for at 80% utilization.

[00:04:53]Does that stand?

[00:04:54]It stands It stands absolutely as we have said around 240 and it may be even more than 240 because the plant is fully commissioned. We already have the approval from few of the customers and you know, one more critical approval is likely to come anytime. The audits have and everything have been completed successfully. So, the formalities still there. The moment that formality is completed, you know, we are bound to get very large orders because there is no other player as far as Indian market is concerned. So, everything which we are going to produce in that plant is a 100% import substitute.

[00:05:32]Okay. Mr. Bansal, you know, we believe that at the end of December last year, we understand that you had a large order that was from the Dow Dow Chemical Company from Canada. Has that particular order been executed? Any visibility of further orders from that particular client?

[00:05:50]Uh that this order is still continuing and this full year that order will continue because that was a very very large order. It's still a very one of the largest orders in the history of our company and we expect to complete it maybe in Q4 and it may some portion may spill over to Q1 also, but the target is to complete everything by Q4 of FY27. Is this a fixed term contract that you're working with with the client? Uh it's almost fixed term, but you know it has annual escalation which starts on January basis on calendar year basis and we already got one escalation which was around 6%. How much is the annual escalation? Will it be around 6%? Every year it's 6%. Okay.

[00:06:32]Okay. What is the current order book, Mr. Bansal? How do you split it between exports and nuclear? Have you started getting something from exports and domestic, my bad. Have you started getting something from the nuclear segment as well or is it an upcoming segment that you'll cater to?

[00:06:46]Uh you have an order book is almost around 1,940 crores. Out of that more than still I will say 60% is export only and the remaining orders are domestic orders.

[00:06:58]So we have a very healthy order book in hand and we have a very healthier pipeline also. We expect to get around 2,000 crores worth of order in this financial year.

[00:07:10]Although you know our target is 1,500 crores and as as per your question for nuclear we are working very hard on that and as a matter of fact you know we have started moving at a much much faster pace you know than earlier we were thinking. So uh there there have been so many developments in nuclear that we do expect that you know earlier we were saying that it may take 3 years, but now we feel that the uh actual job may start in in about 2 years time from now.

[00:07:42]Okay. Mr. Bansal, I just want to re you know iterate that particular figure. Did you mention 2,000 crore worth of order inflow as far as FY27 is concerned?

[00:07:52]Yeah, this is what we >> you split it within the domestic as well as the export market for us? Both, both.

[00:07:56]Both, both. This is what our target is and it has a very clear visibility that we should have an inflow of around 2,000 in this financial year. And domestic as well as export, can you break it down for us?

[00:08:07]>> Both. Almost 50/50, sir. Almost 50/50.

[00:08:11]Take that point, Mr. Bansal. Thank you so much for joining us today and explaining to us the outlook on FY27, the internals for FY26 as well. That's the management of D Development. The stock did fall after the numbers, but has recovered sharply at 5% post this conversation as well. By the way, we do have some