Bansal Wire Industries Limited — Q3 FY26

Bansal Wire Industries Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=CqzHvSD994E Published: 3 months ago

0:03 3 seconds Ladies and gentlemen, good day and welcome to Bunel Vire Q3 FI26 earning conference call hosted by Anandrati 0:12 12 seconds Sharon Stock Brokers Limited. As a reminder, all participant line will be in the listenon mode and there will be an opportunity for you to ask questions 0:21 21 seconds after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on 0:29 29 seconds your touchstone phone. I now hand the conference over to Mr. Pariva from Anandrati. Thank you and over to you sir. 0:38 38 seconds Thank you Danish. Good afternoon everyone and thank you for joining Benelwire Industries Limited quarter 3 FY26 earnings conference call. We at 0:46 46 seconds Anandrai are pleased to host the management of Benelwire Industries Limited. From the company we have with us Mr. Prana Bans managing director and 0:55 55 seconds CEO and Mr. Ganchand Gujarati CFO. We would now like to invite the management for the opening remarks which will then 1:02 1 minute, 2 seconds be followed by question and answer session. Thank you and over to you s. 1:09 1 minute, 9 seconds Thank you Pat. Uh good afternoon everyone and welcome to Bansel Wire Q3 uh earnings call. We are pleased to 1:17 1 minute, 17 seconds report uh that Q3 has been another strong quarter for bansel wire reflecting better operating execution 1:25 1 minute, 25 seconds and sustained demand across core and end markets. 1:30 1 minute, 30 seconds During the quarter we delivered a strongest ever operating performance supported by robust demand across 1:37 1 minute, 37 seconds automotive infrastructure and general engineering. For the nine months ended, we have maintained a consistently 1:44 1 minute, 44 seconds uh strong growth trajectory reflecting the depth of customer engagement and the scalability of our operating platform. 1:52 1 minute, 52 seconds Even though it was a challenging first couple of months due to labor shortages on account of early Diwali and Bihar election, but we picked up in December 2:01 2 minutes, 1 second achieving our highest ever monthly sale of 45,000 tons. This growth has been effectively supported by our expanded 2:09 2 minutes, 9 seconds manufacturing base of over six lakh tons which has enabled us to serve rising customer demand without compromising on 2:17 2 minutes, 17 seconds delivery timelines, product quality and service levels. 2:21 2 minutes, 21 seconds But more importantly, this capacity is no longer just driving volume growth. It is increasingly helping us upgrade our 2:29 2 minutes, 29 seconds product mix towards higher value segments. During Q3, we made a significant strategic move by 2:35 2 minutes, 35 seconds strengthening our specialtity wire added portfolio. We have successfully launched induction harden and tempered IHT wires 2:43 2 minutes, 43 seconds by adding 9,000 tons of high performance capacity. This product is primarily used in automotive suspension springs, 2:50 2 minutes, 50 seconds allowing us to deepen our engagement with automotive OEMs and TOA while improving our long-term margin 2:59 2 minutes, 59 seconds profile. I'm also pleased to tell you that we were able to stabilize this product within the first month of installation and have already started 3:07 3 minutes, 7 seconds commercial sales. Looking at the response we are seeing from our customers, we have also started phase two of expansion by adding another 6,000 3:15 3 minutes, 15 seconds tons of OT wire which would also come on stream within the next two to three quarters. 3:22 3 minutes, 22 seconds Alongside this, we continue to see strong traction from LRPC, which was launched at a Dadi facility with a 3:29 3 minutes, 29 seconds capacity of 18,000 tons. This product caters to infrastructure applications such as bridges, beams, and long concrete structures, enabling us to 3:38 3 minutes, 38 seconds participate more meaningfully in India's growing infrastructure pipeline. 3:42 3 minutes, 42 seconds Together these launches not only expand our volumes but also reposition Bunilwire towards structurally high 3:50 3 minutes, 50 seconds growth areas and higher value added end markets. Another positive I would like to highlight is that we've generated 3:58 3 minutes, 58 seconds almost 240 crores of free cash from operations which was almost a full year's target and with another quarter left I'm confident we would be able to 4:06 4 minutes, 6 seconds achieve much better than expected on that front. Our ROC has also been consistently improving every quarter and 4:15 4 minutes, 15 seconds I believe we are on track to achieving 25% ROC by the end of next year. So that's all from my side. I would like to hand over the call to our CFO Mr. 4:25 4 minutes, 25 seconds Kangar. 4:28 4 minutes, 28 seconds Thank you sir and good afternoon everyone. 4:32 4 minutes, 32 seconds I will briefly summarize the key operation, operating and financial performance for Q3 and 9 months FY by 4:39 4 minutes, 39 seconds 26. During the quarter, company delivered a recall sales volume of 1 lakh 21,000 negative tons representing a 4:47 4 minutes, 47 seconds strong 32% yearon-year growth and 6% sequential growth over quarter 2 financial 26. 4:57 4 minutes, 57 seconds This is the highest quarterly volume ever recorded by the company for the 9 months period ended financial year 26. 5:06 5 minutes, 6 seconds Total volume is stored at 3 lakh 40,000 mic turn compared to 2A 46,000 metric 5:13 5 minutes, 13 seconds turn in 9 months FY 26 reflecting a healthy 38% yearon-year growth 5:21 5 minutes, 21 seconds underlying the consistency of our operating performance. 5:25 5 minutes, 25 seconds This strong volume has been supported by our expanded installed capacity of the of approximately 5:32 5 minutes, 32 seconds 6 lakh 80,000 18,000 metric tons and commercialization of new products such as LRPC wire with 18,000 m tons as 5:41 5 minutes, 41 seconds already mentioned by Panos and the healthy demand from the K1 automo and general engineering sector. 5:50 5 minutes, 50 seconds These giants have enabled us to scale efficiently while improving the quality of our revenue mix. Turning to the 5:58 5 minutes, 58 seconds financial for quarter 3 financial year, our revenue revenue to date 29 crores representing 6:07 6 minutes, 7 seconds uh 11% yearon year growth. IA increased by 19% yearon year to 87% 8 to rupees 87 6:16 6 minutes, 16 seconds crores with a margin of 8.4% 4% while the net profit for the quarter was rupees 43 crores that is up 4% as 6:26 6 minutes, 26 seconds compared to the period last year. The operating cash was generated during the 6:32 6 minutes, 32 seconds 9 months period to be 233 mill and the company generated cash flow from the 6:39 6 minutes, 39 seconds operation during this quarter that is 8 uh 85 crores 6:46 6 minutes, 46 seconds for the 9 months period in financial 26 revenue grew by 18% year on year to 3023 6:54 6 minutes, 54 seconds crores while the ITA came into rupees 243 crores reflecting an in increase of 19% year on 7:03 7 minutes, 3 seconds year net profit of 9 months for financial 26 is rupes 121 crores higher 7:10 7 minutes, 10 seconds by 7% on year-on-year basis this 7:17 7 minutes, 17 seconds concludes my remark and I I will now we will now open for the floor for the question 7:25 7 minutes, 25 seconds thank you so much sir ladies and gentlemen we'll now begin with the question and answer session. Anyone who wishes to ask a question may press star 7:33 7 minutes, 33 seconds N1 on their touchstone telephone. If you wish to remove yourself from the question Q, you may press star and two. 7:40 7 minutes, 40 seconds Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question Q assembles. 8:03 8 minutes, 3 seconds Ladies and gentlemen, we'll wait for a moment while the question Q assembles. 8:13 8 minutes, 13 seconds Our first question come from the line of 8:22 8 minutes, 22 seconds Kunal Sharma from Vertors Research and Advisers. Please go ahead. 8:28 8 minutes, 28 seconds Yeah. Hi. Hi SA. Good afternoon and I hope I'm audible. Yes, you are. Please go ahead. 8:34 8 minutes, 34 seconds Yeah. So now I just wanted to understand can we please throw some light on the GST related issues which we faced a 8:42 8 minutes, 42 seconds couple of months back so notice was somewhere around 206 cr so what's the status on that regard and how does that 8:50 8 minutes, 50 seconds impact on our finances if being imposed by the GSC council then sure 9:00 9 minutes actually we have already intimated the children exchange now Everything has been sorted out and there is no demand 9:09 9 minutes, 9 seconds right now and a little bit demand little bit demand is there and we have already filed appeal to the higher authority for 9:16 9 minutes, 16 seconds the uh for ques of the order which has been given by them. So basically I think 9:23 9 minutes, 23 seconds uh these were uh some unrealistic uh demands that came from the GS department which I think we've already settled to the tune of they've reduced it to the 9:31 9 minutes, 31 seconds tune of 98 99%. And the remaining will also be squashed uh very soon. 9:37 9 minutes, 37 seconds Okay. So we will not going to see any impact on our financial person. 9:43 9 minutes, 43 seconds No almost nothing almost. 9:47 9 minutes, 47 seconds Uh my second question on during the quarter uh we got an approval from the customer for IHC right so will you just 9:54 9 minutes, 54 seconds throw some will you please elaborate more on uh this particular thing on the volume side and how would be the quantum 10:02 10 minutes, 2 seconds and what are we supposed to you know close by the end of this uh set 26 with regards to IHT and OST if you can. 10:11 10 minutes, 11 seconds Sure. So IHT was a product that we started which is used majorly in the suspension application for two and four wheelers. Uh this is a product that is 10:20 10 minutes, 20 seconds you know increasingly replacing regular steel wires uh in all high-end and EV vehicles. 10:27 10 minutes, 27 seconds So we started this product uh in Q3. Uh uh the thought process was that we would uh take about 6 months to receive some 10:35 10 minutes, 35 seconds customer approvals but I think uh the team did a great job there. we were able to stabilize our uh product within the 10:42 10 minutes, 42 seconds first very within the uh very first month and uh from the demand side I think uh it has been quite positive. 10:49 10 minutes, 49 seconds We've already received uh some customer approvals and I think this month we are looking at uh maybe a 20% capacity 10:57 10 minutes, 57 seconds utilization already. Uh our co our now target revised target for this year is to reach about 40% capacity utilization. 11:08 11 minutes, 8 seconds So yeah, I think that's uh that's the main thing. Looking at this, we've already started the phase 2 expansion. 11:15 11 minutes, 15 seconds So uh the capacity was 9,000 tons which we are now expanding to 15,000 tons. 11:20 11 minutes, 20 seconds This should be done in the next 2 to 3 quarters. Okay. For the IHT, right? 9 to 50,000. 11:26 11 minutes, 26 seconds Yeah. IHT and OT combined. So these are similar products. IH is what we call uh a thicker size and a finer and a smaller 11:35 11 minutes, 35 seconds size is what we call OT. So uh kind of a similar uh application. So from 9 to 15,000 tons that's the thought process now. 11:44 11 minutes, 44 seconds And how would that uh beneficiary for us to you know accelerate the margin going forward then? 11:51 11 minutes, 51 seconds Sure. So we are already uh I think we have already achieved our uh margin target here. Although we are not seeing 11:59 11 minutes, 59 seconds absolute uh uh profitability in this segment today because of low uh capacity utilization but I think we will get 12:06 12 minutes, 6 seconds there within quarter 4. Uh so yeah I think uh margin wise I think it's almost double than the regular high carbon wire that we make. 12:17 12 minutes, 17 seconds Okay. And if you can throw more light on the uh product mix considering this facility why where we stand today and 12:25 12 minutes, 25 seconds what are we targeted to uh like by the end of the effort 26 of the year. 12:32 12 minutes, 32 seconds Yeah sure. So I think there was an unfortunate incident in our plant where there was a fire in our specialtity wire shed although there was no material 12:40 12 minutes, 40 seconds damage but I think we are we have now received approvals from insurers to uh you know start back the project. I think 12:47 12 minutes, 47 seconds we it will still take us about a month, month and a half to stabilize the steel cord uh front after which we will resume 12:55 12 minutes, 55 seconds our approval cycle which was already set. I think the target for us was mid of uh next year. I think we are still on 13:02 13 minutes, 2 seconds that maybe uh you know uh delayed by maybe a month or so. So once we achieve 13:08 13 minutes, 8 seconds that we will be able to uh achieve our commercial production or sales uh within Q2 or Q3 of next year. Apart from that 13:18 13 minutes, 18 seconds IHT and OT uh they have done well better than expected. So bulk of the growth for next year will come from uh IHT and OT 13:27 13 minutes, 27 seconds and from I think FI27 is when we would be looking at good numbers of uh steel cord coming in. So once that uh does I 13:36 13 minutes, 36 seconds think our margin profile would significantly improve uh within the next year and the year after that. 13:42 13 minutes, 42 seconds Okay. And I guess uh the product mix somewhere around four to 5% of the entire volume speciality wire considering all these three. 13:52 13 minutes, 52 seconds Yeah. So the product mix is now about uh 5% of the total volume that's uh to start with. But uh in terms of volume 14:00 14 minutes yes it is about four or 5%. But in terms of contribution towards EITA, I think this can be contributing about 15 to 20% of the total AIA going forward. 14:13 14 minutes, 13 seconds Okay. Yes. And my third question and SO just to understand your thought process on the profitability is the run rate uh 14:21 14 minutes, 21 seconds is remain same over the last many quarters despite of showing 20% growth in the AIDA. So why it's not reflecting 14:28 14 minutes, 28 seconds into our facts and what do you see like the gradual recovery in the fact? 14:34 14 minutes, 34 seconds Yeah. So as I have mentioned before our target for this year was uh a growth of about 30% which we revised to uh maybe 14:44 14 minutes, 44 seconds uh towards 40% uh within this year. I think we are already uh on track for that. I think we've uh we've done more 14:50 14 minutes, 50 seconds than 35% growth till now. So that should remain positive for the first fourth quarter as well. We were looking at a 14:57 14 minutes, 57 seconds slight dip in AIA uh starting uh at the start of the year uh owning to a product mix which has not virtually happened 15:05 15 minutes, 5 seconds which was what we uh what we explained on the earlier on the last call as well. 15:10 15 minutes, 10 seconds I think our beta which was supposed to dip is now constant and it should remain constant uh within this year even after 15:18 15 minutes, 18 seconds this volume growth and next year we are looking at a uh better product mix. uh this will give us a better pertain a bit 15:26 15 minutes, 26 seconds uh going forward. This year our focus was more on cash flows and our return profile. So uh I think yeah that's the 15:34 15 minutes, 34 seconds main focus area. This year we want to focus majorly on cash flows and our ROC which has started increasing already. 15:43 15 minutes, 43 seconds Okay. So uh you mean to say gradually from FI27 we start the FDA will start 15:50 15 minutes, 50 seconds reflecting into the pack as well because over the last many quarter we have seen 42 43 cr of P right? 15:57 15 minutes, 57 seconds Yes. So uh so in the last quarter we have capitalized all interest cost we have capitalized uh all investments. 16:06 16 minutes, 6 seconds Therefore you see a jump in depreciation as well as interest. Although our cash profit has increased by 15 20%. But PAT 16:14 16 minutes, 14 seconds level does not reflect that because of higher depreciation but we don't have any more interest or depreciation cost 16:22 16 minutes, 22 seconds that we are capitalizing uh uh you know anymore. So any growth here on in AITA should also reflect impact. 16:32 16 minutes, 32 seconds Thanks. Thanks. Thank you. 16:36 16 minutes, 36 seconds Thank you ladies and gentlemen. Anyone who wishes to ask a question may press star N1 on their touchstone telephone. 16:45 16 minutes, 45 seconds Our next question come from the line of Vinit from Invest. Please go ahead. 16:54 16 minutes, 54 seconds Um hi Pranov good afternoon. Hi sir. Um Ronald uh my first question is um looking at the current run rate um and a 17:03 17 minutes, 3 seconds bida per ton being broadly stable now for the last 2 three quarters at 7 7.1 17:09 17 minutes, 9 seconds rupees a kg u don't you think uh our eida growth if we include other income 17:15 17 minutes, 15 seconds as well the way way we define it um should grow at uh more closer to 25% 17:22 17 minutes, 22 seconds then 20% uh and similar uh good volumes be more closer towards the upper end of the guidance 35 to 40% guidance. 17:32 17 minutes, 32 seconds Sir, that was in fact our target for Q3 but Q3 has not although we have shown good results in Q3 but it could still 17:41 17 minutes, 41 seconds have been better because of October November we lost some volumes uh because of labor shortages. I think Q4 is something that we also look forward to. 17:49 17 minutes, 49 seconds We are already seeing good tractions from all our segments. So yes, in terms of volume, we should be able to do uh a little better in Q4 and uh if we do good 17:59 17 minutes, 59 seconds volumes, our emitter should also increase. Uh but as of now, I would like to stick with my guidance. You know, I don't want to take a lot of pressure on 18:06 18 minutes, 6 seconds the system. Yes, we do have scope to improve. We do have room to grow. Uh but let's see uh how it goes. 18:15 18 minutes, 15 seconds Fair, fair, fair. Um secondly, uh Prav the question was on cash flow. uh this year we've uh done decent uh OCF in the 18:24 18 minutes, 24 seconds first nine of 9 months of the year. Uh you're expecting that to continue in Q4 as well. Um how should we think about 18:31 18 minutes, 31 seconds FY27 um from a cash flow perspective post this? Um and if we assuming a similar 18:39 18 minutes, 39 seconds sort of a run rate in terms of OCF uh what should drive this? Um is it the case that we've not started any uh um 18:46 18 minutes, 46 seconds discounting as yet which which will uh which will contribute to positive OCF uh uh going into FY27? 18:55 18 minutes, 55 seconds Sure. So uh this year our target was uh to maintain uh the same level of inventory, the same level of uh receivables even while growing at 35%. 19:06 19 minutes, 6 seconds at the same level of debt without uh you know doing anything else but still being able to grow at 35%. Uh if we were to do 19:13 19 minutes, 13 seconds that uh we estimated that we will get about 20 250 crores of free cash flow which we now have already done. So I think we have a quarter left. We should be seeing similar trend in Q4 as well. 19:25 19 minutes, 25 seconds Uh for the next year we uh our target was 350 crores. I think that is still intact. Uh looking at what we did in 19:33 19 minutes, 33 seconds this year uh we should be able to achieve that. uh easily as well. This will uh come definitely from a lot of uh 19:42 19 minutes, 42 seconds discounting and uh other provisions that we are making uh for inventories and uh our receivables but also through channel 19:50 19 minutes, 50 seconds financing and a lot of uh lot of operational changes as well in terms of inventory and uh receivables that we 19:57 19 minutes, 57 seconds have done. So I think yeah a combination of what we've done this year uh should also flow into next year we should be able to achieve our target. 20:09 20 minutes, 9 seconds Understood. Understood. So we we maintain that roughly 600 crores of OCF uh over 2-year period still should be doable. 20:18 20 minutes, 18 seconds Yeah. Of course. Of course. 20:20 20 minutes, 20 seconds Perfect. Perfect. Thanks. Thanks for this. Thank you. Uh and just one of uh just last one um from my side if you can 20:28 20 minutes, 28 seconds give some updates where are we on the approval side uh um with customers on the steel cord business uh um lab 20:37 20 minutes, 37 seconds trials, field trials um how long will it take uh what should be the timelines there we should consider? So I think we 20:45 20 minutes, 45 seconds are uh we are uh behind by a month because of some approvals that we've now received uh from the insurance companies 20:52 20 minutes, 52 seconds to start production. Uh but other than that I see no major change uh there. Uh we are on track otherwise for field 21:00 21 minutes trials and lab approvals. I think the last company that we're expecting u lab approval from should also come in in the 21:07 21 minutes, 7 seconds next 10 15 days. uh after that we go to field trial once we have our plant up and running which will take about a 21:13 21 minutes, 13 seconds month month and a half. So Q2 Q3 uh is our target still for uh uh starting supplies of uh steel cord. 21:23 21 minutes, 23 seconds Apart from steel cord the second product for specialtity was IT that has already started uh and uh that's doing well. So 21:32 21 minutes, 32 seconds I think we should be able to see some uh traction from there from steel core. 21:41 21 minutes, 41 seconds Understood. Understood. Uh thanks. Thanks for this. Thank you. Thank you. 21:46 21 minutes, 46 seconds Thank you. Our next question come from the line of Adit Pal from MSA Capital Partners. Please go ahead. 21:54 21 minutes, 54 seconds Hello. Am I audible? Yes sir, you are. 21:58 21 minutes, 58 seconds Yeah. Thank you so much for the opportunity. Uh so I just have one question. Uh wanted to quickly get an update on the consolidation of our 22:07 22 minutes, 7 seconds related party entities that is uh Balaji Wires and Bunal Highbins. If you can 22:14 22 minutes, 14 seconds help us know where we are because uh last couple of calls we had mentioned that we are pl we are planning to consolidate it and it will happen maybe in the next 18 to 24 months. 22:26 22 minutes, 26 seconds Yeah. So there are two parts to this consolidation. First on financials that has been consolidated last year. I think 22:33 22 minutes, 33 seconds last December last uh last year Q3 is when we consolidated all financials. Uh the only thing that is left right now is that 22:42 22 minutes, 42 seconds there is still some production happening in those two entities in the older plants. But that is only being done for Bunel. So those two companies are not operating independently anymore. 22:51 22 minutes, 51 seconds whatever they produce it is for banswire which is still happening and should uh we would take another I think two 22:58 22 minutes, 58 seconds quarters or three quarters for that to shift to dad uh because of the dad ramp up which is slower than expected 23:05 23 minutes, 5 seconds although on Dad front also we have done well I think we've improved our capacity utilization in fact we ended the year at 23:13 23 minutes, 13 seconds almost 60% capacity utilization in Dadi so I think as and when this improves uh even the production for those two 23:20 23 minutes, 20 seconds entities will uh stop but all revenue and profitability has been in banselwire for all these companies from last year. 23:29 23 minutes, 29 seconds Understood. Understood. So only only the so we will so correct me if my if my 23:36 23 minutes, 36 seconds understanding is wrong. Uh so only the consolidation is yet to happen that is 23:43 23 minutes, 43 seconds in terms of the entity wise that you them merging into uh so there is there is no plan of any 23:52 23 minutes, 52 seconds merger or anything like that for those two entities those two entities have to just shut down understood 24:00 24 minutes so banselwire they they're only producing some quantities for bunelwire in their own manufacturing setup which is not very viable and will shut 24:08 24 minutes, 8 seconds Yeah, you've you've already clarified that they only do job work for the current listed entity but just wanted this update which you've provided. Thank 24:17 24 minutes, 17 seconds you so much for that and wishing you and the company all the very best. Thank you sir. 24:24 24 minutes, 24 seconds Thank you ladies and gentlemen. Anyone who wishes to ask a question may press star and one on their touch on telephone. 24:32 24 minutes, 32 seconds Our next question comes from the line of HA from Dalal and Brocha. Please go ahead. 24:37 24 minutes, 37 seconds Yeah. Hi P. Uh just one question. In the last phone call we had mentioned uh the low carbon wire happens to be the higher 24:44 24 minutes, 44 seconds ROC business instead of being a lower ETA burden category. So could you just give a gist on the asset turnover of the 24:54 24 minutes, 54 seconds each of the categories the low carb and high carbon? 24:58 24 minutes, 58 seconds Sir, I do not uh have numbers of asset turn uh of each uh category right now but yes uh low carbon even though it is 25:06 25 minutes, 6 seconds a lower a bit per ton business the asset turns are uh generally better that's why the higher ROC that we understand which 25:15 25 minutes, 15 seconds and that's the focus area as well okay okay fine there any any ballpark 25:21 25 minutes, 21 seconds number that you could give so I would say 25:28 25 minutes, 28 seconds Low carbon is you know acetone would be about two two and a half times of our 25:35 25 minutes, 35 seconds general high carbon portfolio and at least twice of the stainless steel. So that's the difference between these three. 25:43 25 minutes, 43 seconds Okay. Okay. Fine. Uh thanks a lot. Thank you. 25:51 25 minutes, 51 seconds Our next question come from the line of parts from Anandrati. Please go ahead. Hi Emma, what are you sir? 25:59 25 minutes, 59 seconds Yes. 26:00 26 minutes Yeah. Thanks for the opportunity. Um and thank you for you know allowing us to host the call. Uh I just have a couple of quick questions. Uh just uh you know 26:09 26 minutes, 9 seconds just taking one of your remarks uh from earlier taking forward that you said that you know uh your older facilities are basically doing job work for bunchel 26:18 26 minutes, 18 seconds wires right so once the entire capacity moves to dari at the end of the day what is your plans to do at these older facilities? any idea? 26:28 26 minutes, 28 seconds So these are two uh very unviable uh and very old facilities. Uh right now we are only running it just to service the 26:37 26 minutes, 37 seconds market because we don't want to lose our customers till the time we have the right production in Dadari. Uh we don't earn much uh from these two entities. Uh 26:46 26 minutes, 46 seconds as and when we are able to shift uh our capacities, I think this will just shut down. So that's the plan. And the two entities uh they're outside of uh 26:54 26 minutes, 54 seconds Bunselwire and we have no plans of uh you know merging these two entities because there will be nothing left here. 27:00 27 minutes The plant and equipment uh all of it was already purchased by Bunelvire. Uh so they're just operating on lease as of now. 27:10 27 minutes, 10 seconds All right. All right. Thanks for the charity. Uh the next question is pertaining to the fire. I think your insurance is uh claim settlement is 27:18 27 minutes, 18 seconds still going on. So I just wanted to get your idea on what is the expected you know uh you know losses you expect post 27:25 27 minutes, 25 seconds your claims and everything because that will have some overhang on water food. 27:31 27 minutes, 31 seconds Sure. So we have already posted an exceptional uh loss of 1 and a half cr uh that was due to the inventory loss in the fire which we've estimated. 27:40 27 minutes, 40 seconds Everything else was insured. I think the only uh the only loss that we were looking ahead was uh in inventory uh which we've already done in Q3. So we do 27:48 27 minutes, 48 seconds not uh expect anything material to happen in Q4 as well. Oh okay that's actually 27:57 27 minutes, 57 seconds good to know. Sorry. Uh so the third question I just wanted to get your clarity because I think um there has 28:04 28 minutes, 4 seconds been some confusion that you know what is the current capacity between high carbon low carbon uh stainless and specialtity and how the road map is 28:12 28 minutes, 12 seconds panned out you know in say FI27 and 28 because in presentation you have indicated that you are planning on 90,000 t kind of a capacitude expansion 28:21 28 minutes, 21 seconds say by 20 FI 28 in Gujarat. So can you just give a breakdown of high carbon low carbon industry and specialtity and what do you expect in 27 and 28 going forward? 28:31 28 minutes, 31 seconds Sure. So right now out of our capacity of 6 lakh 20,000 tons I would say about 55 60% is uh low carbon 28:41 28 minutes, 41 seconds 20% uh would be stainless steel and the rest will be high carbon and I think uh going forward also we are looking at 28:48 28 minutes, 48 seconds similar numbers. The only difference could be in low carbon where we expect at least 60 62% of the total capacity. 28:56 28 minutes, 56 seconds So if you look at our uh sanex also we are expanding low carbon and stainless steel there. Whereas in high carbon we 29:04 29 minutes, 4 seconds have capacities to expand in the dadri facility in phases. So overall again uh the thought process is to still have 60% 29:13 29 minutes, 13 seconds kind of a low carbon capacity and 20 25% high carbon and 20% stainless steel even on fairlex 29:21 29 minutes, 21 seconds and what about the speciality where do you categorize it because I know speciality the depends on the product it basically moves across the category but 29:28 29 minutes, 28 seconds just wanted to get an idea so speciality uh right now we have a capacity of about 29,000 tons uh which 29:35 29 minutes, 35 seconds we will expand to 35,000 tons by within the next two to three quarters. Uh so that will still be maybe what 5% of the 29:44 29 minutes, 44 seconds total uh installed capacity and this includes the steel tire c,000. 29:51 29 minutes, 51 seconds Yeah. This includes the pilot of 20,000 tons for steel tire cord and also the one which are taking from 9,000 to 15,000 ID. Right. 30:00 30 minutes Yeah. So speciality comprises of uh these two products steel cord and hose wire which is 20,000 tons and IHD on OT 30:08 30 minutes, 8 seconds which will gradually be 15,000 tons. So 35,000 tons combined uh for these two products. Okay. 30:15 30 minutes, 15 seconds And sir I think you just mentioned that one of you're waiting a you know approval in next couple of days from I think the I think that's a phase one approval right from one of your clients is still pending. 30:26 30 minutes, 26 seconds Yes. So for steel cord uh we we are anticipating the last approval that we were targeting maybe within the next 10 15 days or something like that. 30:36 30 minutes, 36 seconds Yeah. Uh after this we will start phase two for all customers. 30:40 30 minutes, 40 seconds Okay. And so if I may just squeeze a quick last question just wanted to get your bit up at tons you know guidance for 27 and 28 because right now in I 30:49 30 minutes, 49 seconds think quarter three finally you have inched back toward that 7,000 mark after almost three quarters. So I just wanted to get your guidance uh on how what do 30:56 30 minutes, 56 seconds you expect in Amitapatan going forward improvement there. 31:00 31 minutes Sure. I think uh we are not looking at a very significant change uh in terms of our product mix. Uh but there will be a 31:09 31 minutes, 9 seconds bit of low carbon uh increasing but there will also be numbers coming in from specialtity. 31:15 31 minutes, 15 seconds So like this year we were anticipating our AITA pattern to go down. Next year we are uh next year we do not see that 31:22 31 minutes, 22 seconds we see speciality wire kick in and gradually the target of course is to increase this to eight 8 and a half or nine over the next uh one or two years. 31:32 31 minutes, 32 seconds Perfect. Perfect. That actually answers all my question. Thank you so much. 31:35 31 minutes, 35 seconds But overall I think for a pattern we focus more on the final growth. So I think the standard 20 25% kind of a uh 31:44 31 minutes, 44 seconds growth we would like to achieve uh you know every year. So yeah overall sounds we have perfect thank you so much. Thank you. 31:54 31 minutes, 54 seconds Thank you ladies and gentlemen. Anyone who wishes to ask a question may press star and one on the touch on telephone. 32:01 32 minutes, 1 second Our next question comes from the line of Kunal Sharma from Veritus Research and Advisers. Please go ahead. 32:08 32 minutes, 8 seconds Yeah thanks. Thanks to follow wanted to know your thought on the SA facility. So 32:16 32 minutes, 16 seconds we now dropped the backwood integration plan. So and still we have 40 acre I guess of free space over there. So what 32:24 32 minutes, 24 seconds is the status on that particular thing and where I supposed to uh put the bead wire and the stainless steel wire I guess if I'm not wrong. 32:35 32 minutes, 35 seconds So beadwire we've already started and this was planned for the gadi facility not in the sand plant. In San it is more 32:43 32 minutes, 43 seconds low carbon and stainless steel. So 50% of the fac of the land that we acquired was for backward integration whereas 50% 32:51 32 minutes, 51 seconds was still for wire. I think we are utilizing that 50% as of now we started you know with this 90,000 tons uh capeex 33:00 33 minutes and this again has a potential to go much higher than the current numbers in different phases for the balance 50% land. I think we are still evaluating. 33:10 33 minutes, 10 seconds Uh we see a possibility of being able to utilize this in the current wire facility also. But uh yeah, I think that's still to be uh yet to be decided. 33:20 33 minutes, 20 seconds So we might uh take a call within the next one or two quarters where we uh sell it off and monetize or we will use 33:27 33 minutes, 27 seconds it if we see uh further expansion uh need of further expansion there. Okay. 33:35 33 minutes, 35 seconds uh on a on a capacity utilization today we stand at 78% and uh we guided for 80 to 85% in the next two to three years I 33:44 33 minutes, 44 seconds guess fi 27 fi 20 so are we stick with the guidance now no as far as capacity utilization go our 33:52 33 minutes, 52 seconds uh target is always to achieve 90% kind of a capacity utilization that's where we are able to get the best returns of 33:59 33 minutes, 59 seconds our investments uh yeah but yes we have come out of a major capex cycle. That's why you know in the last one one and a half year 34:08 34 minutes, 8 seconds we've uh uh we've seen these kind of numbers. Otherwise historically we generally only operate at 90% kind of a capacity utilization. So going forward 34:17 34 minutes, 17 seconds also our first target is to achieve 90 and then to expand each and every quarter or every 6 months wherever 34:24 34 minutes, 24 seconds required so that we do not come down to uh this level again. 34:30 34 minutes, 30 seconds And by when we are targeting to achieve 90% Sir, if uh you look at our current 34:37 34 minutes, 37 seconds trajectory, we are already at 78%. So within this uh uh capacity uh that we have of 6.2 lakh tons, I think we should 34:46 34 minutes, 46 seconds be able to do that within the next uh two quarters, two or three quarters I think. 34:54 34 minutes, 54 seconds But with this we are also expanding uh so every quarter or every six months we uh now keep wanting to uh now we want to 35:01 35 minutes, 1 second keep expanding as well. So there is still a 60,000 ton capeex lined up uh in the Dadi facility for us. 35:10 35 minutes, 10 seconds Okay. And at the end we want to be at the 60 80,000 t capacity in blended combine all the schools. Right. 35:19 35 minutes, 19 seconds Uh so as of now the cape that we planned is 60,000 tons additional for Dadi and about 90,000 tons for san. So from 6.2 35:29 35 minutes, 29 seconds two we should be able to go to about what 7.7 35:37 35 minutes, 37 seconds so uh like we will be the largest player in the country I I guess we'll be supposed to uh sell Tata wireless as 35:45 35 minutes, 45 seconds well so post so uh and considering the 90% capacity so what are the markets that we are expecting and what was the 35:53 35 minutes, 53 seconds trend over the last I would say one or two year and where are we stand today as far as the market share is concerned. 36:02 36 minutes, 2 seconds So the market is also market right? 36:05 36 minutes, 5 seconds Uh yeah the market uh is growing at about 7 8%. I think we were at about 6 or 7% kind of a market share. Uh with 36:13 36 minutes, 13 seconds the the current capacity yes we are now um as far as capacity goes I think we are now the largest uh in India. 36:24 36 minutes, 24 seconds So yeah, I think we'll uh and obviously we want to keep growing at 20 25% in terms of volume as well over the long 36:31 36 minutes, 31 seconds run. So once we do that, we we are every year I think we are capturing market share. So in the very uh near future in the next two to three uh years I think 36:40 36 minutes, 40 seconds we should be able to go to a 10% kind of a market share. Yes, I see. 36:46 36 minutes, 46 seconds Okay. Okay. Thanks for now and that's Thank you. 36:52 36 minutes, 52 seconds Thank you. Our next question come from the line of Deepak from Sundra Mutual Fund. Please go ahead. 36:59 36 minutes, 59 seconds Yeah, thank you for the opportunity. I'm audible. Yes sir. Hi. 37:04 37 minutes, 4 seconds Yeah. Hi Pr uh Po just uh just quick uh double clicking on that fact you said that we want to expand our capacity from 37:10 37 minutes, 10 seconds 6.2 to 7.7 with 60,000 coming at Dadri and another 90,000 at Fannon. Just wanted to know what is the 37:18 37 minutes, 18 seconds commercialization timelines for this because I thought that 60,000 incremental was supposed to come in Q3 but hopefully I think it may come in Q4. 37:27 37 minutes, 27 seconds So just could you highlight like when do you plan to commercialize both these facilities 60,000 at DIY and 90,000 at 37:36 37 minutes, 36 seconds Sure. So sir uh uh for a green field uh project I think uh that requires a long uh planning but for a brownfield 37:44 37 minutes, 44 seconds expansion like what we are doing in Dad for another 60,000 tons that is a very uh flexible thing. Uh so we I mean we 37:53 37 minutes, 53 seconds keep on tweaking the timelines based on the capacity utilization because we don't want to uh end up in a phase where we have cap we have excess capacity. So 38:02 38 minutes, 2 seconds if you're able to sell we uh we are able to fast track the expansion if we see that okay it might take another 2 3 38:09 38 minutes, 9 seconds months then we can delay it. So similarly for the 60,000 ton capex for the I think now we have I think we will 38:17 38 minutes, 17 seconds be commissioning it another 3 4 days. So yeah, that's where we at. Uh that's where we are at. Uh for 90,000 tons, I 38:26 38 minutes, 26 seconds think the timelines are still intact. U by end of next year is when uh we are expecting that to happen. 38:33 38 minutes, 33 seconds Okay. So but again I mean these are very modular things. So we keep on uh adjusting it. 38:39 38 minutes, 39 seconds Yeah. But it would be fair. Yeah. So it would be fair to assume that 60,000 may come in Q4 and the 90,000 may come by 38:46 38 minutes, 46 seconds let's say third quarter of uh next fifth year. Correct. Yes. Third or fourth quarter? Yes. 38:53 38 minutes, 53 seconds Okay. And by any chance could you provide the split between let's say stainless steel and low carbon in the 90,000 and what about the 60,000 the 39:02 39 minutes, 2 seconds split between the capacity where we are making most amount of investment because somewhere I feel that if you have already called it out that if you want 39:10 39 minutes, 10 seconds to increase your low carbon capacity from 55% right now to let's say 60%. Now obviously this will weigh on our AITA 39:18 39 minutes, 18 seconds per ton. I know that we are also ramping up the IST and other specialty wire but somewhere I feel that some netting off might happen and we may not see any 39:27 39 minutes, 27 seconds improvement in AITA port. Would that understanding be correct? 39:31 39 minutes, 31 seconds Sure. So our thought process on aa is uh you know to grow at 20 25% on the absolute number. So I think that we are 39:40 39 minutes, 40 seconds confident about uh in terms of pertinent epeta yes there is some change but there is a minor change in product mix from 55 39:48 39 minutes, 48 seconds to 60% that will not uh uh change much and also in low carbon our pattern is also increasing even in the first three 39:56 39 minutes, 56 seconds quarters we have uh seen better AIA levels in low carbon and low carbon is a product wherein we have the B2C segment 40:03 40 minutes, 3 seconds that has started kicking in so in the third quarter in the second quarter we were at about 5% B2C sales uh in the third quarter itself we have 40:11 40 minutes, 11 seconds already crossed 7% B2C sales and our target for next year is to achieve a 12 to 15% kind of a number. So even in low 40:20 40 minutes, 20 seconds carbon uh once we are able to get a better uh B2C portfolio our AITA per there will increase and go to maybe the 40:29 40 minutes, 29 seconds similar levels of our average AITA uh in the long run with that uh our addition 40:35 40 minutes, 35 seconds of specialtity I think uh it definitely will help uh in absolute aida uh pattern also going up. 40:44 40 minutes, 44 seconds Okay, one final question. So uh if I recall correctly you know our aida pattern have gradually reduced over the 40:51 40 minutes, 51 seconds last three four quarter and one of the two reasons was one is your sales mix change more towards low carbon wire and also we may would have went some uh 41:01 41 minutes, 1 second offered some pricing discount in low carbon wire. So just wanted to understand from market perspective let's say if you have reduced some pricing to 41:09 41 minutes, 9 seconds gain market share would it be easy for us to again go back on the previous price level or then or else does it 41:17 41 minutes, 17 seconds benchmarks us to a new price level after whatever discounting we would have done to gain market share in low carbon wire. 41:24 41 minutes, 24 seconds Sure. So uh this year uh that was the thought process uh from the start of the year that we would be uh we will have to 41:33 41 minutes, 33 seconds price our products aggressively to gain market share but in the second quarter and towards the third quarter I think uh this is what we've realized uh in the 41:41 41 minutes, 41 seconds last call also I highlighted this that we've taken some initiatives in different products where we in fact 41:48 41 minutes, 48 seconds increased our aida uh per ton the strategy of uh gaining market share 41:55 41 minutes, 55 seconds by reducing prices did not really uh happen. We have not actually increased a beta per ton on any of our uh product. 42:03 42 minutes, 3 seconds So only difference right now that you see uh in in the blended aida is because of product mix and not because of any 42:10 42 minutes, 10 seconds reduction in margin and we and even after this we were able to achieve 35% volume growth. So even in the future in 42:18 42 minutes, 18 seconds the next uh 1 year, 2 years or 3 years we do not expect uh a tradeoff between volume and a bit per ton anytime soon. 42:27 42 minutes, 27 seconds We we expect that our AITA per should be intact even if we want to grow at 20 25%. 42:35 42 minutes, 35 seconds Okay. Okay. Very helpful. Uh thank you and all the best. Thank you. 42:42 42 minutes, 42 seconds Thank you ladies and gentlemen. Anyone who wishes to ask a question may press star and one on their touchstone telephone 43:02 43 minutes, 2 seconds as there are no further question from the participant I would like to end the conference over again to Mr. Parth Johnson. Thank you and over to you sir. 43:11 43 minutes, 11 seconds Thank you all for joining us for the conference call today. We at Anandraati would like to thank the managements of Bansel Wires Industries Limited for 43:18 43 minutes, 18 seconds giving us this opportunity. This concludes the conference. Thank you everyone and have a good day. 43:27 43 minutes, 27 seconds Thank you sir. 43:29 43 minutes, 29 seconds Ladies and gentlemen, on behalf of Anandrati Sharon Stock Brokers Limited, that concludes this conference. Thank you for joining us. And you may now 43:36 43 minutes, 36 seconds disconnect your