Azad Engineering Limited May 26, 2025 Now the floor is open for question-and-answers. 1'hank you. Thank you. We will norv begin the question-and-answer session. The first question comes from the line of Kamlesh Bagmar with Lotus Asset Managers. Yes. Thanks for the opportunity and congrats Rakeshii. tbr the excellent delivery and successful QIP. Sir, first question on the order book. So what is the order book as on date or cluarter end'? Yes. Thank you, I(amlesh.li. for the question. Our order book currently stands at upwards of INR 6,000 crores. And secondly, like we have commissioned the capacity. So roughly around 95,000 square meters have been there. So this Phase-2. rvhen do we expect that parlicular commissionin-q? So fbr the first phase, Mr. Bagmar, we are building 95,000 square meters. And as you rvould have heard in the call. we are doing I facility after another. So we have inaugurated 2 lean factories for 2 ofour customers, which have happened respectively. in the last financial year. And now we are going to be getting them online. So those fbctories rvould start generating revenues while we start focusing on the rest of the tactories. which rvill come up cluring the course ofthe year and next. So it will be a staggered approach. And slowly, we will have all olthese factories contributing to revenue I after the other. We are not waiting fbr the entire plant to be open. We are going after every factoly, one afler the other and working on it. So that's our strategy. And lastly, do we have any clarity like how much CAPEX would be there over the next 3. 4 years? Like this year, we have spent roughly around INR 270-odd crores fbr like next year and next after that? Yes. So Mr. Bagmar, we did a QIP of INR 700 crores. Now the reason the QIP was done to foster the growth of the company, right? So this capital that we raised will be deployed towards building our infrastructure and also capacity, and in a staggered way over the next few years. So this is exactly what we are planning to do. Thanks a lot. You are welcome. Thank you. Thank you. Next question comes from the line of Kinial with Shah & Savla. Please go ahead. Mu lesh Savla: Mu lesh Savla:

Azad Engineering Limited May 26, 2025 This is Mulesh here. Thanks for taking my question. Hearteous congratulations on the great set of numbers, and we welcome Mr. Murali and also happy to note that we are increasing our bandwidth at all the levels. So now my first question is. sir. we have commissioned 2 dedicated f'acilities lbr Mitsubishi and GE Vernova. So how is the ramping up happening there? When can wc reach the optimum capacity there? And at the optimum level. what can be the revenue generation liom those 2 facilities? That is my first question. Okay. Thank you so much for the question. I think this is also slightly related to the last question that I answered. So we did inaugurate 2 facilities. 2 lean facilities fbr our customers. So the way this will happen is the facilities are now live. So this is not a transition that will happen ovemight. I think it will take us a few quarters, and it will get better quarter-on-quafter. So this year, FY '26. we are obviously generating revenue out of the nerv facility. Any incremental that revenue comes out over FY '25 will come out of the new tacilities. But you will see that progressive development happening quarter-on-quafter. And I think towards the end of this year, we should be able to reach a full capacity in terms of those lean f'acilities in terms of output. So then what can be the revenue expected at the optimLrm level from both these facilities? Yes. So the way to think about this would be the revenue guidance that we are looking at. So il you looked at what Mr. Chopdar had said during his speech" he said that rve are anticipating a revenue growth of upwards of 30%o for this financial year. Ancl this growth that is coming up will be coming out of the newer factories. Yes. Creat. Great. And hor.r' many further dedicated facilities do you think we r.vill be able to inaugurate in the current financial year? And are there any new customers or nerv products being developed and being targeted this year? Yes. So thank you tbr this question. I think there are a few f'actories that are lined up in pipeline. We won't be able to disclose too much infbnnation about it. But yes, there are I'actories that will get inaugurated during the course of this year. And slowty like we did for the current 2 f'actories. those also will come in line and starl producing results. So that is there. And obviously, ifyou have seen our customer roster, you would have known that our order book and our customers are backing us and trying and looking at blocking us lbr a longer period by signing long-term contracts rvith us. So we are seeing great demand across each ofour verticals and very confident ofdelivering on the execution time lines that we have. Mod erato r:

May 26, 2025 FY '26 should be a year of stabilization fbr us in consolidation lbr the next level of growth. Thank you. Next question comes from the line of Raiesh Vora rvith Jainmay Ventures. Please go ahead. Good afternoon, gentlemen. Congrats on good set ofnumbers. So. see. I wanted to understand your Company under your able leadership has done great on the energy side, and now issuing strong texts towards your laith and descent. With the Contribution this year increasing qr-rite significantly fiom around l37o to l8% ol revenues, how are you seeing this panning out over the next 3 to 5 years? And how will that change the trajectory of margins for the cornpany? Yes. So thank you for the question. So we are very bullish on each ofour verticals and each of those are growing at a certain rate. Ifyou look at our business'trajectory for the last 4 years or 5 years, we have grown at a compounded grorvth rate of about 40oh. Our EBII'DA CAGR has been higher than 40o/o. Our PAT CAGR has been higher than 40o/o. So the business is looking at continuing the growth momentum. When you look at our businesses growth across verticals, you would see that some of our verticals, fbr exarnple, it's a testament to the fact that we kept talking about diversiflcation. And this is the first year where one of our verticals other than energy has demonstrated reasonable numbers. So we closed aerospace with INR 80 crores segmental revenue. up from about INR 43 crores last year. which demonstrates the fact that our qualifications have been completed. If you look at our other vertical. which is oil and gas, last year. we delivered about INR 4.4 crores. And this year, FY '25, we have been able to deliver about INR l3 crores. Now when you look at the growth of these verticals in the coming year, FY '26, you urill see that these verticals are ramping up very. very quickly. because from the business perspective. we fbcused on qualification. we have built capacity and now we are ramping up. So each ofthese vefticals will grow at a faster rate than the blended growth rate ofthe business. So you will see that oil and gas will grow multifbld because the base is smaller today. Aerospace also will grow upwards of the blended growth rate that I talked about. So this is how we are seeing the business evolve over time. Okay. Any goalpost lbr the energy as a percent oFrevenue?Rajesh Vora: Page I of 20

Moderato r: Azad Engineering Limited May 26, 2025 Yes. I understand. So ideally, we want the business to be lairly diversified. So we anticipate in the next few years, the business would reach about 55%o.60%o energy. and the balance 35yo. 40yo will be contributed by aerospace and defense and oil and gas. So it does not mean that any vertical is growing. So we have a lot of headroom cvcn in energy. but we anticipate that the grorvth rates of the business witl get us to a point where 55Yo,60%o will be contributed by energy, and the balance between the other 2 verticals in the next f-ew years. That's useful, Vishnu. And my second question is on. given the massive opportunity, and'fAM fbr the company in each ol'the verticals. and given that we are taking significant leaps in capacity expansion, with 15.000 square feet already booked up of95.000 square meters. in the earlier question you mentioned that it will be a sorl of staggered utilization and ramp-up. So, is it f-air to say that we will have with the entire 95,000 square meters to be booked in the next year or so? How much time are we looking at? I would like to answer this 2 ways. If you look at r.vhat we have delivered. we have delivered INR 453-odd crores ofrevenue last year. Ifyou look at our order book. which I said was upwarcls of INR 6,000 crores, you knorv that the order book to sales ratio is extremely big. So for r.rs. we are looking at progressively adding manufacturing facilities with capacity. And see, this is ayear of stabilization for us. We are trying to build an eoosystem where we are building newer plants, l0x higher capacity and all ofthat. So we intend the business to grow at upwards of30o/o while ensuring that each ofthese things are properly scaled up. So you will see that 95,000 square meters will be completed over the next 12 to 18 months in terms ol construction and we will slowly open it up lbr capacity. And then we will move into our Phase-2 of expansion, which is the next leg fbr us. But right now, our fbcus is to look at FY '26. deliver on the comrnitments that rve have for customers and to our shareholders. So tve are looking at that right now. Great. Thank you. Vishnu. And wish you all the best Rakesh ji and the team. Thank you. Thank you so much for your question. Thank You. Next question comes fi'om the line of Kireet Atluri with Jetha Clobal. Please go ahead. Yes sir, it's Karan here on for Kireet. So.iust 2 clarilying cluestions. What should we assume is the asset turnover on the incremental CAPEX spend over the next 3 years like directionally'?

Azad Engineering Limited May 26, 2025 So the incremental asset tumover fbr the next year will be 2, blended across verticals 2, right? So on any incremental CAPEX spend, the asset tumover should end up being about2, I would think, right? Yes, that's correct. That's correct. So and maybe this speaks to the conservatism ofthe guidance. I guess ifyou consider that yor,r are going to spend INR 150 crores at the minimum in CAPE,X this year. I fbrget the exact number. You are actually only assuming 30% growth. which rvould equate to INR 120 crores of incremental revenue. So if you simply keep extrapolating that. you are not getting anywhere close to 2. you are close to I . So there is a big discrepancy between what you are saying is your revenue growth guidance for the next couple ofyears, and the asset tumover of2. So I.just want to reconcile those 2 nurnbers? Yes. So Karan thank you for the question. I think for us, this year, so we are not looking at getting our capacity line. We are looking at consolidation as a thing. And the asset turn that you are saying, incremental asset turn of 2 will happen over time, because now the deployment of capital is also towards infrastructure. towards capacity. So by the tirne we are investing and returning, you would see that towards the end or quarterly progressively. you'll be able to see the ramp-up moving fiom ,l.0 to 2.0 of incremental asset turn. And it will be demonstrated over our progress that you see fbl this business. And our strategic priority fbr this year is to get all our manufacturing facilities up, constructed. filled with capacity. So we do not have any challenge in terms of capacity for the years that we are looking fbrward, because order book is already there. This is how we are looking at30o/o, because even on a base of INR 140 crores, we are looking at growing this and any incrernental revenue that you are seeing from INR 450 crores and upwards is going to come out of the new facility. So for us, so where the investment is done. right? So we are going through that cycle of stabilizing it. consolidating and then rapidly growing fiom there. So the QIP money will be deployed shortly. It's with us in the... Yes. Okay. Sorry. Maybe I will .lust squeeze in.just one. The question was fbr the 2 facilities that have already ramped or are in the process of ramping, have we already sourcecl all the equipment that is needed for those facilities or are they still in transit? Yes. So the sourcing has been done. I think a few ofthe machines have already arrived. And so out of the 2 manulhcturing plants. one of the manufacturing plants, about 70%:o of the machines have arrived and have started production already. But the balance machines are on the way. Ancl fbr the other plant, it's happening. So it will happen over the next I or 2 quarters for us to be able

Azad Engineering Limited May 26, 2025 to ramp this up. But the machines orders have been placed. And so everything is pretty much done fiom our side. We are just waiting fbr it to be delivered to us and then r.ve get them operational. Next question comes from the line of Amit Dixit with ICICI Securities. Please go ahead. Ili. Good afternoon, and thanks for taking my cluestions. A f-ew questions from my side. The first one is on the advanced gas turbine engines that these are limited production partners with GTRE. So as per my understanding. the first engine was to be delivered by the last quarter of FY '26 or maybe first quarter of FY '26. So I just r,vanted to understand where we are on this? And what kind of market you see considering that the recent lndo-Pak conflict was basically drone-based, and these engines are supposed to go in drones and [,RSAM, which are the flavor of the town now. So just wanted to get a brief on where we are on this development and what kind of use case you see for these engines? Okay. Thanks. Amit. First of all, on this engine, the -iet engine. so it is in production at the moment, and very soon, we are going to deliver the first 2 engines. And looking at the market, if you ask me. it's not really defined to us. because this is utilized in multi platforrns. It's used in the UAVs, it is used in anti-ship missiles and it has a mass, quite a few platforms where this engine will be used. So this engine is a very strategic decision. right? So this is just a key to the bigger door. lt's a small key. And if you see this capability development. lve will be the flrst one to manuf-acture this engine in India. And this is more lol the country. So this is a need of power, and our fbcus is f'ulty on to develop this engine and delivel to the governrrent MOD as soon as possible. Okay. The second one is on there was an MOU that we executed in Saudi under the meet in Kingdom and used by the Kingdom kind of scheme with Baker Hughes. So just wanted to understand the progress on that. Are there any milestones that we have crossed when we expect contracts to be signed, et cetera? Yes, Amit, so the MOU was signed fbr sure. yes. And we also have this intent to do it. So we are having multiple discussions with the government of Saudi Arabia as well as our customers. And we are making a proper strategy to set up a shop there. And you are aware that it's not so easy to get out oflndia. setting up the shop. A lot ofwork is involved in there. So that's ongoing at the moment. So maybe we can update you by the next quarter. we can tell you what exactly the status would be. But still, the discussions are going on. and we are very active in that. Great. lf I can squeeze one more and then I will re.join the queue. On working capital. I mean pretty pleasant to see that in aerospace and defense actually the working capital days have come Am it Dixit: down. Inventory days have come down particularly. in a veD,steep manner, 246 to 155. iI'I compare FY '24 versus FY'25. And even the receivable days have come up. However, we see a little bit of increase in invenkrry days in energy vertical. So I just wanted to understand frorn FY '26. is it the peak working capital days that we will see? And what kind of sustainable rvorking capital days can we assume fbr both the verticals? Yes. So Amit, there is a small catch in this. Look, there's one way we are looking to reduce all the working capital, as I mentioned in the last call as well. that most of the qualifications are now done and the inventory which is sitting is now getting off'. And not long in a f-ew quarters, you will see declining the number of days. And very soon. yoLr will witness that. On the other hand, we are seeing these contracts which we are signing, where we need to really showcase the customers that we need to hold some kind of inventory for showing the raw material because these contracts are bourrd orr the OTDs what we do. the deliveries is what we really have to demonstrate that, look, we are holding the raw material fbr you. So there are 2 aspects going on. One. is the past which we finished middle of the qualifications and now you will see next quarters a declining working capital cycle. And it's not far away, okay? A few quarters only you start seeing the decline thing. And other part is on few ofthe contracts, which requires mandatory that. okay. rve need to have some inventory fbr some short of time where we have this regularized, as the contract is very new, right? So the cycle starts and even that also can be controlled verv well. Yes. The question was more on what we saw that aerospace and defense. where fbcus is the wrong rvord, basically, we saw increase in revenue significantly from there. However, on the inventory front. we saw a decline. On receivables, we saw a decline. which is very pleasant to see. So.iust wanted to understand the genesis of that, and you mentioned thatthis will continue. So this decline is actually quite welcome. So I just wanted to understand more that what lies ahead as we go for more qualifications, whether this number will increase and then decrease or we will see this remaining at this particular level, parlicularly for aerospace and def'ense? Yes. So Amit, as a strategy, we signed something. say. 2 years. 3 years back, and we have committed to the customers. And you are very well aware on the raw materials, which are having massive lead times, 3 months, 6 months, 9 months, sometimes l2 months also fbr the deliveries. right? And this is one time.

Azad Engineering Limited May 26, 2025 One time we took these contracts, we got the orders. we bought the rnaterials lying and we finished the qualification. The entire cycle. it.lust looks like a contract to the qualification. But ifyou actually see the cycle times for the entire.journey. right fiom receiving the contract till you finish the qualification and till then you wrll not see any movement in the inventory change. You will only see the inventory change as you start producing in the production orders, right? That has started. So going forward, the best part is we have taken up the entire qualifications, and we don't see any more contracts of this new kind of where we have to invest massively in the large inventory for finishing the qualification. Malority is over. So we have not signed. We don't have anything which is sitting, which needs to be having a big inventory with us. So that way, I think that's the reason I am telling in a few coming quarters. you will see the decline. Great sir. Thank you so much. and all the best. Thank you. Next question comes from the line of Sarang Joglekar with Vimana Capital. Please go ahead. Yes, hi can you hear me. So on the order book. first of all- wanted to understand the INR 6.000 crore order book over how many years it will be completed? Thank you for your question. So our order book is split over multiple years. So there are 3 years, 5 years, 6 years contracts that we have. Got it. And on the product side, do you lool< at in the future. developing more complex, more value-added products? Or will you be scaling up with whatever you are producing right now'? Yes, we are doing that. In fact. ifyou look at our orders that we bagged in the last flnancial year. we have also looked at some very strategic orders where we are increasing our value-additions. So from a component manufacturing! we are moving into" say, end-to-end assembly of a complete gas turbine engine for Indian defense. right.So Mr. Chopdar talked about it briel'ly. So we are increasing our capability by going up the value chain in terms of the manufhctLrring industry. So frorr a component manufacturing. we today are building capability and skill set around end-to-end manufacturing as well. So, that is happening fbr our customers. Got it. Yes. That's it. Thank you. Thank you. Next question comes from the line of Aditya Bharlia rvith Investec. Please go ahead. AZAD

May 26, 2025 Hi, good afternoon. sir. My first question is on the revenue guidance that you have given. [-ast year also. we had started off with roughly 25o/o to 307o grorvth. and we ended up delivering almost like 35% growth. Do you think that you are being a bit conservative" given that we are expanding our capacity quite sharply? And is it a case that this year, as you are calling it to be a year of consolidation. next year growth can be even significantlv fhster? Hi Aditya. So this, again. it's a mixed answer fbr whatever. Vishnu, myself and what we spoke. As I told you. these facilities which are coming up. they are massive. right? And the equipment. what we are buying, they are not really available off the shelf'. We have to import a lot of machines. right? And the questions which are coming is when the revenues will coming up. when the factories will come up. and what is the guidance we are looking at. So FY '26 is very crucial to us to set up these facilities, get the equipment. So the equipment which has arrived. say example" GE Vernova, this rvas not ordered today. This was ordered quite long back. And that's the reason the machines comes in. installs, we comrnission them, we start doing the qualification again, and then we start producing the par1s. So there is a cycle which we have to follow, correct? So whatever we have done before the QIP what we raised money and before these equipments, whatever was ordered long back. Sirnilarly. from now, what rve are planning to fill up these fhctories up. right? So the equipments have been ordered. So as this comes, so we need to give some time fbr them to stabilize. So FY '26 is what we look to stabilize first. So maybe in coming quarters. we can let you know on this question how exactly we are going to give a guidance more. So at the moment, we hold this because it's termed as conservative or aggressive. That's dif'ficult to say at the moment. So we are just waiting for all these f'acilities to come up and make sure that first the commitments what have been given to the customers to show the facility is up, that's where the focus is at the moment. Anything you want to add, Vishnu? So Aditya, just adding to r,vhat Mr. Chopdar said. I think if you have seen how we have given quarter guidance and annual guidance in the past also. we have been very accurate about r,vhere we want to go, and in all cases. we have over-delivered on our guidance. This is our estimate of what we will be able to do by achieving various aspects of growth in the organization about stabilization" ordering of machines. newer contracts, new team members, all of that. And30o/o on a basis like this is a pretty good number to look forward to in my view. Absolutely. Absolutely. My second question is on the working capital side, wherein you did speak about likelihood of working capital coming down. Anything more that you can share on that? What kind of traiectory should wc look at, maybe not from the perspective of this year. but

over a slightly longer period of tirne also. where be settling? is it that you would like the w'orking capitzrl to So I think, Aditya. Mr. Chopdar had attenpted to answer this in the previous one. bLrt still.just to give you a broad contours of where we want to head to. So we believe that we want to get to by the end of this financial year, we want to get to about I 70 to I 80 days of cash-to-cash conversion cycle. And if you remember why and how this working cycle is getting trimmed, you will see our vertical scaling up revenues. right?

Vignesh lyer:

So our Aero business trom INR 40 crores ntoved to INR Oil and gas, which is currently about INR l3 crores. \\/ill would see all of this trimming towards the end of it. Progressively. yes, overall, quafter-on-quafter, you rn ight then by the end of this year, we should be at a range of 170. cycle. 80 crores and will continue to grow. signilicantly grow this year. So you be able to see smaller changes. And 180 days of cash-to-cash conversion Perfect. That's great to hear. Thanks Rakesh, Thanks Vishnu. You are welcome. Thanks Aditya. Thank you. Next question comes from the line of Vignesh Iyer with Sequent Investment. Please go ahead. Hello sir. Thank you for the opportunity. One question from my side. So what I was observing over the last 3 quarters is, there is some movement on part of the employee expenses moving on the higher side. And I heard your comments earlier where you said, we are entirely staffed for the requirement in relation to the new facilities that have opened up. So is it fair to say that the expenses already showcased the additional salaries that is required for the upcoming7,2O0 and, 7,400 square meter facility? Okay. So Vignesh, just to go back to rvhat I meant when I was talking about it. So over the last 1 year, Azad has hired a lot ofsenior management resources across various business posts that we had. Now this was created for the future, right? So each ofour business verticals todal, neecl business leaders that are focusing on how we are going to be ramping up in each of these vefticals, whether it's energy, aerospace and defense and oil and gas, because the way we havc to scale up ftom this point is very different from 5 years ago. So that is why the senior management positions have been manned. So in terms of the manpower cost, yes, you can say to an extent, we do have the people that we needed. But the ideal manpower cost for our business is significantly lorver than where we anticipated it to be today. So today. Vignesh lyer: Vignesh lyer: Vignesh lyer:

we are at about 20oh, zloh of ntanpower cost right now cost to over time, normalize to about 15%. 16%. 17%. years. Understand. I mean that leverage 'uvill pla,v out rnore... Azad Engineering Limited May 26, 2025 fbr the business. but we anticipate this But this r,vill happen over the next f-ew As a high-growth company this is the capital that needs to be deployed. So we are not looking at it from a cost perspective. We think this is an investment fbr the f-uture. Today. our order book to sales is about I 0x, I I x. For us to be able to cater that, we need senior leaders fbcusing on each ofthe growth engines and scaling the business rapidly. So that is our view on the business. And you will see employee cost. tapering of'f over the next f'ew years. Perfect. And sorry if I missed it earlier, could you tell me what is our EBITDA margin guidance? Will it remain at the same level as FY '25 going ahead? Yes. So our EBITDA guidance will be consistent. So we would maintain the EBITDA guidance that we have done. For the last financial year. whatever we have delivered. we would want to continue at the same rate. Perfect. Perfect. Thank you. That's all from my side. And all the best sir. Perfect. Thanks. Next question comes from the line of .latin Jadhav with Sahasrar Capital. So sir rny tirst question was regarding how many more dedicated t'acilities are we targeting to manufacture or cater to future clients or existing clients? And sir, my second question was regarding the gas turbine engine, which we have made. What are the f'uture prospects? Or are we looking to deploy them in any near time soon in any products? Or what is the overall development over there? Yes. So thank you for your question. I will start by answering the first one. So yes. we are looking at putting up more dedicated factories, and I think we are working on it as well. Over the course of this financial year. you would be able to see some updates regarding that. It will be dif'ficult to share some insights on to it now, because we are bome by some conlidentiality norms. But during the course of these years. you will see a couple of more manufacturing facilities going live for our customers. So that's one. On the second front, which is gas turbine engine that we spoke about, see" Mr. Chopdar brought about the f'act that this is our entry into something really big. fbr us to move fiom a component manufacturing into a cornplete engine manufacturing. And this is a strategic path fbr us, right? Jatin Jad hav:

Azad Engineering Limited May 26, 2025 So this is the first step towards a major development that is happening towards the def'ense ecosystem in India, and we are doing it for the first time. And India is also rnaking engines fbr the first time, and this is their first step. So we are very confident of it. The developments internally, the results look promising. And we hope that this continues. And this step that we are taking will lead us to bigger and more bigger engines in the future. Sir, just a follow-up on the engine. So currently the design phase is complete? Are we testing it? So the design is with GTRE, we are looking at end-to-end manuf'acturing and supply of it. So the design is already achieved, and we are in the process ofnranuthcturing. And then testing will be happening at DRDO, once the manr"rfacturing is cornpleted at our end. Correct. That's pretty much from my side. Thank you so much and all the best. Thank you. You are welconre. Thank You. Next question comes fronr the line of Vishal Dudhwala with Trinetra Asset Managers. Please go ahead. So llrst of all, thank you for taking my question. Congratulations fbr good set of numbers. As my couple of questions already answered, and I have left with one question. I will be squeezing a little bit more on EBITDA margin. At least. tell me your EBITDA margins have expanded to 36.3Voin FY'25 as we have known that the mix evolves with more aerospace and defense work, which may be more engineering and intensive. So do you fbresee any risk to rnargins or could this lead to f'urther operating leverage in the upcoming years? So our margin guidance is consistent with what we have delivered in FY '25, and we anticipate that we will grow the business at 309/o. sustaining our EBII-DA rnargins and PAT margins. Okay. Thank you for that. Next question comes fionr the line of Divy Agrawal with Ficom Family Office. Please go ahead. So a few questions fiorn my side. I actually wanted to know what was the capacity utilization for the old 20.000 square meters facility and the 2 new facilities that came up? I am sorry, can you please repeat your question, slowly? So I just wanted to know the capacity utilization for the old facility that was around 20,000 square meters and the 2 new facilities that came up recently.

Azad Engineering Limited May 26, 2025 So for the existing facility, we operate at an average of about 84%, 85%. And the new facilities that are coming up online, we are in the process of getting all equipment setting it up. etc. But our aim towards the end of this year we should be able to reach an optimum utilization of 70- plus percent by this year. Got it. sir. And regarding the 2 new facilities that you have set up. so approximately how much was the CAPEX that you have incurred 1'or that? So fbr us, we would not want to share numbers at a unit level. but our investment in the business will be to the tune of INR 700 crores, which will happen over time. And this will be invested in infrastructure and capacity building across all our dedicated units. Got it. This would include that 95,000 square meters as Sangareddy capacity. right? Yes, this correct. So this includes the 95,000 square meters only. Okay. And just a clarifrcation on the Sangareddy f'acility, in the last PP-l Q3 PPT mentioned the capacity would be around 75.000. But in this current presentation is around 67.000. So can you help me with that? What's the final number for that? Yes. Sorry, can you please repeat? Your voice is breaking. Can you please repeat the same again? Sure. So I iust wanted a clarification regarding the Sangareddy facility. So in the last PPT ofthe Q3, the capacity that was mentioned was around 75,000 square meters. But in this current PPT. the capacity is mentioned as around 67.000. So there's a deviation between the 2 numbers. So can you help me with that? Yes. So the way to think about this is, so we are constantly improving our capacity, right? So if you look at a few years ago. we were talking about 20"000 square meters of manufacturing capacity available with us and then roughly about l0x more comin-e up. right? Now the I0x more coming up was across 2 manufacturing plants. One was about 95,000 square meters and the other one is about 70,000 - 75,000 square meters. Currently, what we are developing is Phase I of it. which is 95.000 square meters. So all the investments that you are seeing are going in the 95.000 square meters, and this is coming up one-by-one. As soon as this entire 95.000 square meters, all the plants in it come and get completed, we will move on to the second phase, which is 75.000 square meters. Okay. So it's 75,000 square meters, right? Second one. Yes, second facility is about 70,000 - 75,000 square meters.

Azad Engineering Limited May 26, 2025 Because in the presentation, it's mentioned 67.000 square meters. So I got confused between that, but thanks for the clarification" sir. Ladies and gentlemen. due to time constraints, we have reached the end ofquestion-and-answer session. I would now like to hand the conference over to Amit Dixit for closing comments. Yes. I would like to thank everyone for attending the call and fruitful discussion that we had today. I would now like to hand over the call to Mr. Chopdar for any closing comments. Over to you, sir. Thank you. Amit. Thank you, SGA team. Thank you, everyone, for your time and patience fbr this call. I have nothing much to add, and I think we are good. Thanks a lot. Thank you. On behalf of Azad Engineering Limited, that concludes this conference. Thank yor.r for joining us. You may now disconnect your lines. Pag e 20 of 20