Gallantt Ispat Ltd — Q4 FY26

Gallantt Ispat Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=AxpDpYSx9t4 Published: 7 days ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to Galand Espart Limited Q4 FY26 earnings conference call hosted by 0:10 10 seconds Ashika Institutional Equities. As a reminder, all participant lines will be in the listenon mode and there will be an opportunity for you to ask questions 0:18 18 seconds after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on 0:26 26 seconds attached phone. Please note that this conference is being recorded. I now hand the conference over to Miss Joti Gupta from Ashika Institutional Equities. 0:35 35 seconds Thank you and over to you ma'am. 0:38 38 seconds Thank you you sir. Good evening everyone and welcome to Gallant as part Limited quarter 4 FI26 earnings conference call. 0:45 45 seconds Today on the call we have with us from the management Mr. Bindy Jalan vice chairman Mr. Mayang Adra chief executive 0:52 52 seconds officer Mr. Amit Jalan chief accounts officer and Mr. 0:57 57 seconds Patri chief financial officer we will commence the session with the opening remarks from the management after which we will open the floor for the Q&A 1:05 1 minute, 5 seconds session I will now request Mr. be in the lab for his opening her over to you sir. 1:12 1 minute, 12 seconds Thank you Ji and good afternoon ladies and gentlemen. 1:17 1 minute, 17 seconds A warm welcome to Valent Park first earnings conference call. We see this as 1:23 1 minute, 23 seconds an important step in building a more open, consistent and structured engagement with the investment community 1:31 1 minute, 31 seconds and we look forward to making this a regular dialogue going forward. 1:37 1 minute, 37 seconds India's steel sector is at a genuinely exciting juncture. The structural demand tailwinds like government infra 1:46 1 minute, 46 seconds spending, a robust construction cycle, a thriving automative sector and a nationwide build out of railways and 1:54 1 minute, 54 seconds logistics are real, visible and durable. 1:59 1 minute, 59 seconds This is not a one-year story. We are talking about a multi-deade opportunity and gallant with its integrated 2:07 2 minutes, 7 seconds manufacturing platform, its geographic positioning and the foundation we have steadily built over 20 years is well 2:17 2 minutes, 17 seconds placed to participate in it meaningfully. 2:22 2 minutes, 22 seconds While the opportunity landscape remains compelling, FY26 was a phase of consolidation with marginal volume 2:30 2 minutes, 30 seconds growth. Importantly, this period has laid the foundation for a meaningful scale up with ongoing expansions 2:37 2 minutes, 37 seconds expected to drive strong volume growth in FY27. 2:43 2 minutes, 43 seconds Parallel Gallant is actively taking a number of initiatives to make the company future ready across capacity, 2:52 2 minutes, 52 seconds raw material security, energy and technology to ensure we can seize this opportunity at a scale. As part of this 3:01 3 minutes, 1 second broader transformation, we have also strengthened our governance framework through the induction of eminent independent directors including Mr. 3:10 3 minutes, 10 seconds Rachel Kumar Gupta, former chief secretary to the government of Uttar Pradesh. Mr. Ashuja Prasad Siasta, 3:18 3 minutes, 18 seconds retired chief commissioner of income tax, Mr. Kishor Parad, former CGM and regional director RBI and Mr. Sanjay 3:27 3 minutes, 27 seconds Kumar Jan, practicing chartered accountant. For now I will hand over to our CEO Man Aaral to walk you through 3:36 3 minutes, 36 seconds the business performance and the pillars that will drive our growth. Over to you man. 3:43 3 minutes, 43 seconds Uh thank you sir and a very good afternoon to everyone here. Let me start with a brief view on the industry 3:52 3 minutes, 52 seconds before walking you through to our own performance across the four pillars that I believe best capture where gallon stands today and where we are headed. 4:04 4 minutes, 4 seconds The global steel industry is at an inflection point after a prolonged period of subdued demand weighed down by 4:12 4 minutes, 12 seconds China's real estate correction, geopolitical disruptions in the Middle East and a cautious investment climate 4:19 4 minutes, 19 seconds in developed markets. We are beginning to see a recovery taking shape. China remains the key variable. The real 4:27 4 minutes, 27 seconds estate correction has been deeper than anticipated and the Chinese exports have kept global prices under pressure. 4:35 4 minutes, 35 seconds However, the rate of demand decline is moderating and developed markets in Europe and the US are gradually 4:44 4 minutes, 44 seconds stabilizing on the back of infrastructure spending and improving financial conditions. 4:51 4 minutes, 51 seconds India stands apart in this landscape. 4:53 4 minutes, 53 seconds Our domestic demand drivers are structural and not cyclical. 4:59 4 minutes, 59 seconds The government's infrastructure push, the construction and housing cycle, the automotive sector, the railways built 5:07 5 minutes, 7 seconds out, all of these are creating a compounding and sustained demand environment. 5:14 5 minutes, 14 seconds India is also for the first time become a net exporter of steel. a milestone that reflects the scale and 5:22 5 minutes, 22 seconds competitiveness that domestic producers have built. 5:27 5 minutes, 27 seconds This is the environment we are operating in and I believe it strongly favors disciplined integrated players like us at Gallant. 5:36 5 minutes, 36 seconds I will not now take you through our four pillars that define our performance. 5:43 5 minutes, 43 seconds The first one being volume growth. While FY26 marked a phase of consolidation, our focus has been on building a strong 5:52 5 minutes, 52 seconds foundation for the next phase of growth through ongoing capacity expansions and operational improvements. These 6:00 6 minutes initiatives are expected to support a meaningful scale up in volumes going forward, positioning us well to capture the demand momentum in our key markets. 6:09 6 minutes, 9 seconds In addition, we are evaluating a medium-term growth plan alongside the ongoing 3,000 cr ke program and intend 6:18 6 minutes, 18 seconds to present this opportunity in Q2 FY27. 6:23 6 minutes, 23 seconds The second is the cost efficiency and the integration depth. One of the most important indicator indicators of how 6:31 6 minutes, 31 seconds well an integrated steel business is running is the proportion of semi-finish product that ends up being sold 6:39 6 minutes, 39 seconds externally rather than being consumed internally. 6:43 6 minutes, 43 seconds Our clear objective is to pro progressively reduce these proportions by deepening integration and channeling 6:51 6 minutes, 51 seconds more of our upstream products into finished TMT thereby capturing the full value addition at every stage of the 6:58 6 minutes, 58 seconds chain. our raw material costs. I want to share something that I think speaks to the resilience of our cost structure. 7:07 7 minutes, 7 seconds Despite significant volatility in input prices, particularly coal and iron ore and the impact of currency movements on 7:15 7 minutes, 15 seconds import cost, we have maintained our raw material cost as a proportion of the net realization at approximately 72%. 7:24 7 minutes, 24 seconds And this has been consistent across both FY 2425 and FY2526. 7:31 7 minutes, 31 seconds Holding that ratio steady through a volatile cost environment is not easy and it reflects the advantage our integration and procurement discipline 7:40 7 minutes, 40 seconds gives us. We are also making significant progress on debottlenecking our iron 7:47 7 minutes, 47 seconds supply chain. We have secured cap captive iron ore blocks in both Rajasthan and Uttar Pradesh and we are 7:55 7 minutes, 55 seconds actively developing these assets. Once operational, these mines will fundamentally change our raw material 8:02 8 minutes, 2 seconds economics providing security of supply and taking out a significant layer of procurement and logistic cost. 8:10 8 minutes, 10 seconds We expect this to translate into anita improvement of approximately 2,000 rupees per turn which is very material step up for a business of our scale. 8:22 8 minutes, 22 seconds The next pillar number three being the margin expansion. 8:26 8 minutes, 26 seconds The margin expansion story at Gallant has multiple layers and they are all reinforcing each other. Let me walk you 8:33 8 minutes, 33 seconds through them. First offer, first is our burton which has already improved meaningfully from 8,300 rupees per turn 8:41 8 minutes, 41 seconds in FY25 to rupees 8785 per turn in FY 26. 8:49 8 minutes, 49 seconds This improvement has come through a period of softer realizations which makes it which makes it particularly significant. 8:57 8 minutes, 57 seconds It reflects the integration benefits flowing through better raw material procurement and efficiency improvement 9:05 9 minutes, 5 seconds across our plants. Structural gains that are not dependent on the steel price cycle. The ongoing capex scheduled for 9:14 9 minutes, 14 seconds commissioning in the current financial year includes debottlenecking of upstream operations at the Gujarat unit 9:21 9 minutes, 21 seconds which is expected to enhance a beta port. Additionally, our renewable energy program remains a key margin lever 9:29 9 minutes, 29 seconds wherein we are investing about 225 cr in solar capacity comprising 18 megawatt at Gujarat which is scheduled to be 9:38 9 minutes, 38 seconds commissioned in Q2 FY27 and 60 megawatt at Gorakpur Uttar Pradesh expected to commission in Q427. 9:47 9 minutes, 47 seconds The next pillar four would be capital discipline. 9:51 9 minutes, 51 seconds The fourth pillar perhaps best defines how we approach uh running this business. Gallant is a net cash surplus 9:59 9 minutes, 59 seconds generating company. We carry no term loans and our borrowings are limited to working capital facilities deployed in the normal course of operations. 10:09 10 minutes, 9 seconds Every rupee of capital expenditure incurred over the past five years which is about 1,200 crores approximately in 10:17 10 minutes, 17 seconds total has been funded entirely through internal approvals. During this period 10:23 10 minutes, 23 seconds our gross block has nearly doubled our C has improved from 13 to 23%. 10:30 10 minutes, 30 seconds And our debt to equity has consistently remained below 2s. This combination is both strong and relatively rare. 10:41 10 minutes, 41 seconds Our current expansion is our current expansion is part of rupees 3,000 crex program spanning further steel making 10:49 10 minutes, 49 seconds capacities, mine development and renewable energy. We will be pragmatic about financing. Internal internal approvals remain our first preference. 10:59 10 minutes, 59 seconds However, we will also consider debt and equity capital where appropriate ensuring that growth is funded efficiently and the balance sheet remains healthy. 11:10 11 minutes, 10 seconds What will not change is the discipline with which we approach returns. 11:15 11 minutes, 15 seconds I will now hand over to Mr. Praima Satpati for the financials. Over to you Satri. 11:22 11 minutes, 22 seconds Thank you Mr. May. Good afternoon everybody. I will take you through our financial performance for uh Q4 and full 11:30 11 minutes, 30 seconds year FY26 fully year FY23 performance for the full year our consolidated revenue for from 11:39 11 minutes, 39 seconds operations 2.418.92 4,418.92 cr with other income of 59.59 11:47 11 minutes, 47 seconds crude total income to 4,478.5 cr this represent a year on year growth 11:57 11 minutes, 57 seconds of 3.95 percentage supported by volume growth of 1.7%. 12:04 12 minutes, 4 seconds Iita for the year was 77.04 044 with margin of 17.56 12:14 12 minutes, 14 seconds percentage and IBITA for turn of rupes 8,785 12:21 12 minutes, 21 seconds profit after tax to 484.27 cr with tax managing up 10.81 81%. 12:30 12 minutes, 30 seconds Now we'll discuss and adjust inform about team for financial year 26 per month. Coming to the fourth quarter 12:39 12 minutes, 39 seconds revenue from operation was 1,24.814 with other income of 24.5. 12:49 12 minutes, 49 seconds Taking total income to 1,229.34 cr. This reflect a sequential growth of 12:58 12 minutes, 58 seconds 12.93 percentage over Q3 FY26 13:05 13 minutes, 5 seconds for Q4 was 208.94 with margins of 16 99 percentage 13:13 13 minutes, 13 seconds compared to one uh rupees 168.694 69 pro 13:19 13 minutes, 19 seconds and 15.5 percentage in Q3 profit after track for the quarter stood at 100 rupees 122.884 88 84. 13:31 13 minutes, 31 seconds Now let us discuss balance sheet and capital allocation on the balance sheet uh on the balance sheet we remain net 13:39 13 minutes, 39 seconds depth free as of 31st March 26 with net depth to net dep 13:47 13 minutes, 47 seconds at zero. Our growing unlimited working capital requirement in normal course of 13:52 13 minutes, 52 seconds business capex during the year was 32 32 cr preliminary primarily for capacity 14:02 14 minutes, 2 seconds making integration initiative and initial work on our renewable energy program. We expect our 14:11 14 minutes, 11 seconds leverage to remain comfortable through financial year 27. As we 14:18 14 minutes, 18 seconds progress on our uh medium-term capital run, we continue to maintain prudent approach to capital allocation supported by a mix of internal accurat. 14:44 14 minutes, 44 seconds Thank you very much, sir. 14:46 14 minutes, 46 seconds We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone telephone. 14:55 14 minutes, 55 seconds If you wish to withdraw yourself from the question queue, you may press star and two. 15:01 15 minutes, 1 second Participants are requested to use handset while asking a question. 15:05 15 minutes, 5 seconds Ladies and gentlemen, we'll wait for a moment while the question assembles. 15:17 15 minutes, 17 seconds Participants to ask a question you may press star and one. 15:25 15 minutes, 25 seconds First question is from the line of Gat Tundan and individual investor please go ahead. 15:39 15 minutes, 39 seconds Yes please go ahead. Yeah, congratulations a good set of numbers. I 15:46 15 minutes, 46 seconds wanted to understand like going forward to two to three years down the line where do you see also what is the top end growth and bottom line growth you are expecting? 15:58 15 minutes, 58 seconds Uh thanks Mr. Tand uh I think a very good question. uh definitely as of now like uh what I mentioned in my opening 16:05 16 minutes, 5 seconds remarks also the current uh expansion plan which is there with 3,000 16:12 16 minutes, 12 seconds that will increase our capacity to 1.39 1.3 million tuh production and I think 16:19 16 minutes, 19 seconds uh the volume the overall revenue should go up to somewhere around 5,300 5,400 K 16:26 16 minutes, 26 seconds rupees with that and obviously the cost should come down that is what is one phase and the second phase is that we 16:34 16 minutes, 34 seconds are evaluating how to seize the opportunity further and uh what we uh expect that sometime in the quarter two 16:42 16 minutes, 42 seconds we should uh be coming back to you guys to inform what is our medium to uh long-term plan 16:50 16 minutes, 50 seconds okay all right then what about the margin expenses margin we have already seen that we are 16:57 16 minutes, 57 seconds somewhere around 15 uh 16 17% and we should uh With the completion of the projects and with the mining integration we should be somewhere around 20%. 17:08 17 minutes, 8 seconds And sir last question from my side how are you funding your capex which you are expanding your capacity. 17:15 17 minutes, 15 seconds So the current phase of capex funding is from the internal actual largely from internal actual. 17:24 17 minutes, 24 seconds Sure. Sure. Thank you so much sir. Thank you. 17:29 17 minutes, 29 seconds Thank you. Before we move to the next question, a reminder to the participants to ask a question, you may press star and one. 17:38 17 minutes, 38 seconds Next question is from the line of Natik Mata from Sequent Investments. Please go ahead. 17:50 17 minutes, 50 seconds Sorry to interrupt Mr. Marta. Your voice is very low. 17:56 17 minutes, 56 seconds Good evening, sir. Thank you for the opportunity and congratulations on a good set of numbers. Sir, I have a couple of questions. First, if you could 18:04 18 minutes, 4 seconds provide some volume data with respect to pilot production, DRRi production and steel as well as sales data for FI26. 18:17 18 minutes, 17 seconds So, I think uh that data is already part of the presentation. But uh uh nevertheless uh uh Amit you have the 18:25 18 minutes, 25 seconds numbers ready. Can you just uh talk about uh what is the uh blet production, what is the pellet production and what 18:34 18 minutes, 34 seconds is the uh spawn island production in FY26. Is that the number you are looking at? So, so you just 18:52 18 minutes, 52 seconds the production in FY26 for PL is 222 kilo. 18:59 18 minutes, 59 seconds Uh for system it is 245 kilo. For the delay it is 235 kiloton and the TMT bar 19:07 19 minutes, 7 seconds is 210 kil this is for the for it is for the FY26 19:16 19 minutes, 16 seconds the production is 819 kilot it is 950 19:24 19 minutes, 24 seconds kilot is 883 kilot and the KMT bar 788. 19:37 19 minutes, 37 seconds Thank you. 19:39 19 minutes, 39 seconds The sale volume is 26 for you sir. 19:45 19 minutes, 45 seconds No. Uh Mr. M does it answer your question? On the sales volume. 19:54 19 minutes, 54 seconds Okay. Uh Amit talk about the sales volume also. Right. Thank you sir. The 20:00 20 minutes sales volume is 49 kilot of sector is sold in 25 kilot 20:07 20 minutes, 7 seconds is sold 81 kilot and the tmp bar is 766 kilot. 20:17 20 minutes, 17 seconds So secondly with respect to the expansion uh that we are planning for the steel plant and also for the 20:25 20 minutes, 25 seconds expansion or following the commencement of the mine. So could you provide some timeline when do we expect these uh 20:33 20 minutes, 33 seconds capexes to start you know uh commercial production to start at these mines and the steam to expand. 20:40 20 minutes, 40 seconds So there are three parts uh uh for 3,000 K rupees capex plan. One part is the 20:47 20 minutes, 47 seconds capacity expansion of the steel which is somewhere around 1,200 K rupees which is underway and uh this should uh commence 20:56 20 minutes, 56 seconds uh come in the production sometime in H2 of this financial year. The second part is uh uh 300 cr rupees uh uh the solar 21:05 21 minutes, 5 seconds plant which is likely to be completed within uh uh this financial year and the third part is the mines uh with a capex 21:14 21 minutes, 14 seconds of somewhere around 1500 cr that is likely to be completed uh by FY28. As of 21:21 21 minutes, 21 seconds now you know that the m opening of the mind in India is a uh is a little uh time-taking initiative but we have taken very challenging uh time period with us. 21:32 21 minutes, 32 seconds Let's see that uh uh how uh we are able to achieve our internal timeline of hyper8. 21:42 21 minutes, 42 seconds Uh that was thank you. 21:45 21 minutes, 45 seconds Yeah sure thank you. Thank you. 21:54 21 minutes, 54 seconds Next question is from the line of Gal Sha, an individual investor. Please go ahead. 22:00 22 minutes Hi, thanks for the opportunity. Uh just one question from my side. Uh wanted to understand if uh we are planning to get into uh any export market. 22:13 22 minutes, 13 seconds So Gel I think maybe so long there's opportunity to sell in India and unless it is compelling by way of uh added 22:21 22 minutes, 21 seconds margin there is no reason for us to export but sometimes uh uh uh I think seldom we get an opportunity wherein the 22:29 22 minutes, 29 seconds realization in export market is better than uh Indian market. So at that point of time definitely we'll we keep on evaluating and we shall evaluate. 22:39 22 minutes, 39 seconds Got it. Thank you so much. Thank you Jane. 22:44 22 minutes, 44 seconds Thank you participants to ask a question you may press star and one. 22:51 22 minutes, 51 seconds Next question is from the line of prana Bastawala who is an individual investor. Please go ahead. 22:58 22 minutes, 58 seconds Yeah thank you for the opportunity. So two questions. One is in your uh balance sheet I can see that in the cash flow also 294 23:07 23 minutes, 7 seconds or 297 crores have been given from loyal loans. What is it? That is one question and second thing is you have earned some 23:16 23 minutes, 16 seconds around 600 to 700 cr cash flow from operating activity this year. Now this is sizably a very good amount and 23:24 23 minutes, 24 seconds looking at that you have a borrowing of 550 crores. So uh if uh how you are looking at the steel market in the 23:31 23 minutes, 31 seconds subsequent years and uh what you are planning to use with this cash flow with this kind of cash flow you are going to generate and you are talking about 2,000 rupees again additional savings unfur. 23:43 23 minutes, 43 seconds So can you just uh throw some light on this thank you uh thank you for your question. I think uh uh two three points 23:52 23 minutes, 52 seconds let's try to look at the current year surplus. In fact, we have got somewhere around 800 K rupees uh uh surplus 24:00 24 minutes uh as on 31st March and out of that the borrowing is 440 K rupees. So the net cash is almost 360 K rupees. as part of 24:09 24 minutes, 9 seconds TRI management we have deployed the money uh in the in the intercorporate uh 24:15 24 minutes, 15 seconds uh market uh at a interest rate of 12% and this amount is the uh payable on 24:22 24 minutes, 22 seconds demand within 3 months so I think uh we have evaluated the security we have evaluated the uh counterparty risk and 24:30 24 minutes, 30 seconds we are quite confident that uh there's no counterparty risk uh so I think at 12% interest rate is a very good opport opportunity. So that's part number one. 24:40 24 minutes, 40 seconds Part number two, you about that uh uh how are we going to use the generation? 24:46 24 minutes, 46 seconds So this cash surplus is a temporary phenomenon as we said that we have got the capex program of 3,000 cr rupes and 24:54 24 minutes, 54 seconds uh this is supposed to be funding uh funded from uh internal generation. So I think the cash flow is going to be 25:02 25 minutes, 2 seconds primarily deployed for uh capex and uh partly for uh the dividend payment. I think as of now this is what is the uh 25:11 25 minutes, 11 seconds our priority. Uh so these are the two points. The third point you said that uh 25:18 25 minutes, 18 seconds uh 600 is uh okay I think the uh steel market is 25:25 25 minutes, 25 seconds generally good and uh we are uh uh we are quite uh uh well positioned in the 25:32 25 minutes, 32 seconds uh area of our operation that is UP and Gujarat the uh areas where we are selling the material we have got almost 25:39 25 minutes, 39 seconds 25% of the market share and we on top of that we realize some premium over our peer group because of the branding what 25:47 25 minutes, 47 seconds we have created for Gal. So we see as uh a wellplaced opportunity for us and uh 25:55 25 minutes, 55 seconds that is why uh we have said that we are evaluating further opportunities as to what we can do in the medium term. Sir can I for one more question is it okay? 26:04 26 minutes, 4 seconds Yes. Yes. Please go ahead. 26:06 26 minutes, 6 seconds Yeah. Yeah. So one more question is okay 3,000 cr capex and we are on 5,000 cr turnover. So what is looking like what 26:15 26 minutes, 15 seconds is the real game plan after I say around four to 5 years where not I'm not talking about the turnover but are we 26:21 26 minutes, 21 seconds looking at some where will be number in the steel in terms of the business or we are looking 26:29 26 minutes, 29 seconds at some other business also and looking at some other minds to diversify I think we are quite focused we want to 26:36 26 minutes, 36 seconds remain and build in the steel industry uh that's number one and number two we want to see that uh uh to to the extent 26:43 26 minutes, 43 seconds possible it is fully integrated uh uh uh steel plant. So definitely we like to go 26:51 26 minutes, 51 seconds for uh acquisition of uh more minds so that the integration story is complete. 26:57 26 minutes, 57 seconds And sir last question are you looking at any which what are the challenges you are looking at major challenges in next two years? 27:05 27 minutes, 5 seconds I think if you just try to look at the challenges uh the challenges is once we uh crystallize the uh capex plan 27:13 27 minutes, 13 seconds implementation of that uh because it will be a uh sizable investment. So 27:20 27 minutes, 20 seconds though uh we are going to go through the curve of uh complete insulated from the external risk but uh since it is going 27:29 27 minutes, 29 seconds to be uh uh the project of uh uh good economic side. So I think of that 27:36 27 minutes, 36 seconds project from a balanced uh uh uh funding proposal with equity and external borrowing that is what I see is the 27:45 27 minutes, 45 seconds first step opportunity also and implementation within the time period ahead of others. I think that is a little bit of challenge to us. 27:54 27 minutes, 54 seconds Okay. So sir you are looking at some equity portion also in the in the 3,000 cr program. No, in 3,000 rupees there's 28:03 28 minutes, 3 seconds no equity uh uh program. It is all from internal generation. Okay. Thank you very much from my side. Thank you. Thank you sir. 28:11 28 minutes, 11 seconds Thank you. Thank you. Thank you. 28:16 28 minutes, 16 seconds Next question is from the line of Nan Gala from ite. Please go ahead. 28:22 28 minutes, 22 seconds Yeah, thank you for the opportunity. Uh so my question uh uh I sorry I joined in 28:28 28 minutes, 28 seconds late uh and it might get repeated as well. Uh but taking the cue from the previous participant uh where you know 28:37 28 minutes, 37 seconds you highlighted that you have a plan of uh uh a KS of 3,000 crores spread over the next four years. Uh so sir can you 28:46 28 minutes, 46 seconds uh help us understand in terms of you know uh how you are going to deploy uh the 3000 and you know what what kind of 28:55 28 minutes, 55 seconds uh topline potential uh it will have uh while we deploy this. 29:03 29 minutes, 3 seconds So uh n uh there are three pieces uh to this uh 3,000 rupees capex plan. The first piece 29:12 29 minutes, 12 seconds is uh the expansion in the cap city from 1 million to 1.3 million uh at a capex 29:19 29 minutes, 19 seconds of uh almost uh 1,200 uh uh cr rupees that is going to be completed uh in the 29:27 29 minutes, 27 seconds in the current financial year and from H2 onwards uh uh the impact of that will flow in uh the bottom line and uh 29:37 29 minutes, 37 seconds okay the second part is uh uh second part is the uh 300 cr rupees solar plant 29:44 29 minutes, 44 seconds which is likely to be completed uh in the uh by end of this financial year or by the quarter one of the next uh 29:51 29 minutes, 51 seconds financial year. And the third part is the uh the 1,500 cr rupees mine 29:58 29 minutes, 58 seconds development. We have been allotted uh three uh four mines uh uh in uh in UP 30:06 30 minutes, 6 seconds and uh in Rajasthan. So we have earmarked 1500 cr rupes for that. 30:13 30 minutes, 13 seconds Whereas we have taken a very aggressive challenge of completing it by FY28. I think uh uh we are still working on that 30:22 30 minutes, 22 seconds on the approvals and all that part. So these are the three parts and with that what will happen with the first part there will be revenue increase and the 30:30 30 minutes, 30 seconds revenue should go up from 4,500 K res to somewhere around 5,300 5,400 K rupees 30:38 30 minutes, 38 seconds and with the mine integration our cost of production should come down by almost 30:46 30 minutes, 46 seconds so so you so you'll have an operating leverage uh once we absolutely okay for margin an expansion. Uh 30:55 30 minutes, 55 seconds absolutely absolutely right. 30:59 30 minutes, 59 seconds And and sir when you said you want you you plan to increase the capacity from 1 million ton to 1.3 million t. So what is 31:06 31 minutes, 6 seconds the peak utilization level uh uh that you know you can achieve and and and after you achieve that certain 31:13 31 minutes, 13 seconds percentage then again you'll have to keep on you know expanding the capacity. 31:18 31 minutes, 18 seconds uh so what's next so utilization uh level so basically I think maybe in past we 31:27 31 minutes, 27 seconds have been achieving a capacity utilization of almost 80% but we have taken lot of initiatives and now we are 31:34 31 minutes, 34 seconds at 88% so we even though our endeavor is to uh cross the barrier of 90% but we 31:42 31 minutes, 42 seconds expect somewhere around 90 92% will be at good level of capacity utilization 31:50 31 minutes, 50 seconds Okay. Okay. Understood. Understood. Uh sir, you highlighted you know uh some capex onto the solar uh you know uh 31:59 31 minutes, 59 seconds plant as well. So this will be for uh internal uh consumption and and what is the megawatt uh that you are planning to and where is this project coming up? 32:11 32 minutes, 11 seconds Uh ma'am you would like to take this question? 32:15 32 minutes, 15 seconds Yeah. So uh hello sir. So 18 megawatt uh is what we are doing for the Gujarat 32:22 32 minutes, 22 seconds plant and it's coming up near the plant only in a place called Siddhipura and uh 60 megawatt is for Gorakpur up plant and 32:31 32 minutes, 31 seconds it is coming in uh Priyagra area and both the units uh generation 32:38 32 minutes, 38 seconds would be self- consumed uh in the steel uh manufacturing. 32:43 32 minutes, 43 seconds Okay. and and what kind of savings that you know you envisaged uh onto the power cost uh through this. 32:52 32 minutes, 52 seconds So there would be uh total of about uh about 50 33:01 33 minutes, 1 second so uh 30 to 30 to 40 crores is what we are expecting as a saving yearly from 33:07 33 minutes, 7 seconds this 78 megawatt of total uh yeah generation. 33:12 33 minutes, 12 seconds Okay. Okay. And and any any further plans to further bring it down? Uh and this would be how much percentage of your power cost? 33:22 33 minutes, 22 seconds This uh so in terms of uh uh to uh installation it would be about uh 78 and 33:31 33 minutes, 31 seconds 150 to 20 I think about 30% but when we see it on the unit uh basis 33:38 33 minutes, 38 seconds uh what will be the percentage am do you have it in front of you in term of percentage? 33:48 33 minutes, 48 seconds It is not a very substantial percentage but the whole idea of the group is that whatever uh power requirement we come 33:57 33 minutes, 57 seconds across in uh while we are building the capacities. So there are two aspects to look uh for the power. One is the wasted recovery from the steel making process. 34:09 34 minutes, 9 seconds So that we are uh using and the rest where we need to fire the coal is the part where we are trying to replace it 34:17 34 minutes, 17 seconds with the solar for the current expansions also and going forward also. 34:22 34 minutes, 22 seconds Okay. Okay. Understood. Understood. And and sir apart from the existing uh you 34:28 34 minutes, 28 seconds know uh uh states that we operate in uh over the longer term do we you know further plan to expand into different uh geographies? 34:39 34 minutes, 39 seconds So in the in the short to sorry please no go ahead man go ahead. So in the 34:46 34 minutes, 46 seconds short to medium term we don't feel the need of it because we are in the two uh 34:52 34 minutes, 52 seconds markets UP and Gujarat which are uh broadly having the infrastructural spending substantially higher than the 35:00 35 minutes national averages and the uh the demand side is uh very very good and uh we we 35:10 35 minutes, 10 seconds have certain gaps in terms of where we can further extend expand our capacity. 35:14 35 minutes, 14 seconds ities and fill up those gaps as the brand is established, the network is established and uh we see a good 35:22 35 minutes, 22 seconds potential in further expanding the capacities. So in the short to medium term we are not looking at it but definitely in the medium to long term we are not we are open for it. 35:32 35 minutes, 32 seconds Okay. Okay. Got it sir. Got it. This is very helpful. Uh thank you and all the best. Thank you. Thanks. 35:40 35 minutes, 40 seconds Thank you. 35:43 35 minutes, 43 seconds Next question is from the line of Disha Parik from family office. Please go ahead. 35:50 35 minutes, 50 seconds Thank you for the opportunity. Uh sir, I just wanted to understand how are we managing I know sourcing currently is it 35:58 35 minutes, 58 seconds mostly through long-term contracts purchases or a mix of both? Ma'am, uh can you take the question? 36:06 36 minutes, 6 seconds Yes. 36:07 36 minutes, 7 seconds Yes, sure. So, hello ma'am. So for Gorakpur and Gujarat both the units the sourcing patterns are totally different. 36:15 36 minutes, 15 seconds uh in Gorakpur our iron or finds is being broadly managed uh in different proportions by Orisa 36:25 36 minutes, 25 seconds MP and also Maharasht little bit and uh for the Gujarat unit it is u uh some 36:35 36 minutes, 35 seconds part of pellet is being uh purchased from Rajasthan and from NMDC we also do have a long-term take contracts 36:44 36 minutes, 44 seconds and uh sometimes uh during the year based on the viability uh we are also importing. So the both the plants have a 36:53 36 minutes, 53 seconds very different dynamics of ironos sourcing. 37:00 37 minutes Okay sir. Uh got it. Uh that's helpful. Uh okay. Yeah this answers my question. 37:07 37 minutes, 7 seconds Thank you Disha. Thank you so much. Thank you. Thank you. 37:14 37 minutes, 14 seconds As there are no further questions from the participants, I now hand the conference over to Miss Joti Gupta from Ashika Institutional Equities for the closing comments. 37:25 37 minutes, 25 seconds Uh thank you so much. Thank you uh a audience for participating and the management for attending the session. 37:32 37 minutes, 32 seconds Thank you. 37:35 37 minutes, 35 seconds Thank you on behalf of Ashika Institutional Equities. That concludes this conference. Thank you all for joining us and you may now disconnect your lines. 37:45 37 minutes, 45 seconds Okay. Thank you very much. Thank you.