HEG Limited — Q2 FY26

HEG Ltd Q2 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=RkULzGi6h0U Published: 6 months ago

0:00 Good day ladies and gentlemen. Welcome to HG Limiteds Q2 FYI26 result conference call organized by SKP Securities Limited. 0:11 11 seconds As a reminder, all participant lines will be in the listenonly mode and you will be able to ask questions after the 0:18 18 seconds management's opening remarks. Should you need assistance during the call, please signal an operator by pressing star then zero on your Touchstone phone. Please 0:27 27 seconds note that this conference is being recorded. I now hand the conference over to Mr. 0:33 33 seconds Naven Agarwal, head institutional equities at SKP Securities Limited. Thank you and over to you sir. 0:43 43 seconds Good afternoon ladies and gentlemen. I'm pleased to welcome you on behalf of AG Limited and SKP securities to this financial results conference call with the leadership team at AG Limited. 0:55 55 seconds We have with us Mr. Manish Kulati executive director along with his colleagues Mr. Omraash Amira group CFO 1:02 1 minute, 2 seconds Mr. Raviantraati CFO Mr. Punitan Cso and Mr. Ankut Kretan MD and CEO of TAC 1:09 1 minute, 9 seconds Limited a wholly owned subsidy of ATG limited we'll have the opening remarks from Mr. Gulati followed by a Q&A session. Thank you and over to you Man. 1:22 1 minute, 22 seconds Uh good afternoon and welcome to ATG's financial results conference call for Q3 FI26. 1:30 1 minute, 30 seconds Let me begin with a brief overview of global steam industry trends which continue to shape the demand environment 1:37 1 minute, 37 seconds for rapid electrodes. As per the recent world seed association, global crude seed production in the first nine months 1:46 1 minute, 46 seconds of 2025 stood at 1,373 million metric tons, a 1.5% decline year 1:53 1 minute, 53 seconds on year, indicating a slowdown in demand across major economies. 1:59 1 minute, 59 seconds China's crude steel output declined by 2.6% yearonear due to weak construction and production ts. China's crude seal 2:08 2 minutes, 8 seconds production saw a sharp sequential decline of 9.9% in last quarter reflecting extreme caution and domestic demand. 2:17 2 minutes, 17 seconds China's finished exports in Q2 surged 9.2% yearonear to 58 million metric tons intensifying global competition and pressuring international steel prices. 2:29 2 minutes, 29 seconds Now world exchina crude steam production was soft declining marginally by 0.1% yearonear to 627.6 2:38 2 minutes, 38 seconds million metric tons and 1.5% sequentially in Q2 driven by ongoing macroeconomic headwinds. 2:46 2 minutes, 46 seconds India remained a standout performer posting a 10.5% year-over-year increase to 122.4 million metric tons supported 2:54 2 minutes, 54 seconds by continued infrastructure and automotive sector growth. 2:58 2 minutes, 58 seconds Among other major producers, Japan declined 4.5%, South Korea fell by 3.4% and US resisted a modest 2.1% increase. 3:10 3 minutes, 10 seconds The graphite electrode market continues to face challenging conditions. Customer demand remained muted due to cautious 3:18 3 minutes, 18 seconds procurement and aggressive export pricing by Chinese suppliers which intensified margin pressure for producers globally. The recent 3:26 3 minutes, 26 seconds imposition of 50% reciprocal duties in US poses potential headwind to our competitiveness in that region. However, 3:35 3 minutes, 35 seconds we hope that tariffs will settle down to a more reasonable level in coming times. 3:40 3 minutes, 40 seconds In any case, ATB has a well diversified sales footprint across all major global markets. On a positive note, we are 3:48 3 minutes, 48 seconds proud to announce high revenues due to higher sales volumes and decent profits for the quarter, demonstrating our operational resilience. 3:56 3 minutes, 56 seconds We continue to operate at one of the highest utilization levels in the industry, 90% plus in the last two quarters compared with our peers. 4:05 4 minutes, 5 seconds The electro prices have remained flattish between Q2 and Q1 and so have the core prices. We hope that in two 4:13 4 minutes, 13 seconds three quarters steel production starts to increase and the new electric armies capacities start coming on stream in the 4:20 4 minutes, 20 seconds next 1 to two years. Our single location 100,000 ton production base combined with a structurally lowc cost 4:27 4 minutes, 27 seconds environment in India positions us as one of the most costefficient graphite electrode manufacturers globally. The 4:35 4 minutes, 35 seconds global transition towards low emission electrical steel making continues to accelerate driven by climate goals and 4:42 4 minutes, 42 seconds regulatory momentum. This transition is expected to generate substantial incremental demand as we have said in 4:50 4 minutes, 50 seconds the past calls estimated at approximately 200,000 tons of graphite electrodes by 2030 excluding China 4:57 4 minutes, 57 seconds reinforcing the industry's long-term potential. As you are aware, we have already announced further expansion of 5:04 5 minutes, 4 seconds 15,000 tons with a capex of rupees 650 crores to be completed by end of 2027 5:11 5 minutes, 11 seconds and be ready for production in the first quarter of calendar year 2028. 5:16 5 minutes, 16 seconds Despite ongoing market challenges, we remain confident in the medium to long-term growth trajectory for our industry. 5:23 5 minutes, 23 seconds The combination of electric car forest led structural demand growth and supply resilization should gradually lead to market stabilization and margin 5:32 5 minutes, 32 seconds recovery. Regarding the de merger process, the ongoing composite scheme of arrangement has been filed with the stock exchanges and remains under 5:40 5 minutes, 40 seconds review. But the process has taken longer than anticipated. We are confident of receiving stock exchange approvals in 5:47 5 minutes, 47 seconds due course. Upon receipt, the scheme will be filed with NCT for its consideration. Based on the current 5:54 5 minutes, 54 seconds buying table, we expect NCT approval by April 2026. With that, I would now like to invite our CFO, Mr. Dupati, uh to 6:03 6 minutes, 3 seconds present the financial results for the quarter. Thank you. Over to you, Ravi. 6:09 6 minutes, 9 seconds Uh thank you, sir. Uh good afternoon friends. Uh I will now briefly take you through the company's operating and 6:17 6 minutes, 17 seconds financial performance for the quarter ended 30th September 2025. 6:22 6 minutes, 22 seconds Uh for the quarter ended 30th September 2025 HG recorded revenue from operation of rupees 697 crores as against rupes 6:32 6 minutes, 32 seconds 568 crores in the corresponding quarter of the previous financial year. During the quarter ended 30th September 2025, 6:41 6 minutes, 41 seconds the company delivered a VA of rupees 226 cr as against 140 crores in the corresponding quarter of the previous year. 6:52 6 minutes, 52 seconds The company on a standalone basis recorded a net profit after tax of rupees 131 crores in Q2FY 26 as against 7:01 7 minutes, 1 second amount of rupees 62 crores in the corresponding quarter of the previous year. 7:07 7 minutes, 7 seconds And on consolidated basis the net profit after tax is rupees 105 crores in Q2F by 7:14 7 minutes, 14 seconds 26 as against rupees 82 crores in the corresponding quarter of the previous financial year. The company is a 7:21 7 minutes, 21 seconds long-term debt-free and had a track size of nearly about 1,167 crores on 30th September 2025. 7:31 7 minutes, 31 seconds Now to take more questions from the participants. uh detailed presentation has been uploaded on the company's website and on the stock exchange. Now 7:40 7 minutes, 40 seconds we would like to address any questions or queries you have in your mind. Thank you. Over to Navein. 7:48 7 minutes, 48 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask questions may press star and one on the touchstone 7:57 7 minutes, 57 seconds telephone. If you wish to remove yourself from the question, you may press star and two. Participants are requested to use handsets while asking 8:05 8 minutes, 5 seconds questions and limit themselves to two questions. 8:09 8 minutes, 9 seconds You may join the queue again and time permitting, we will take your follow-up questions. 8:14 8 minutes, 14 seconds Ladies and gentlemen, we will wait for a moment while the question Q assembles. 8:26 8 minutes, 26 seconds To ask questions, please press star and one. 8:36 8 minutes, 36 seconds The first question is from Amit Loti from MK. Please go ahead. 8:41 8 minutes, 41 seconds Thanks for the opportunity and congratulations on a good set of numbers. My first question is on Q2 performance. So how much revenue 8:50 8 minutes, 50 seconds increase could be attributed to volumes and product mix and how much to prices? 8:57 8 minutes, 57 seconds Okay, see prices as I uh said in the remarks were flat uh between Q2 and Q1 9:04 9 minutes, 4 seconds and uh rest is the top line which you're seeing is coming from higher sales uh in Q2 compared to uh Q1. 9:14 9 minutes, 14 seconds Okay. So completely it is coming from volume completely on volume. uh you want to add a point on this? Yes. 9:21 9 minutes, 21 seconds It's a it's a completely due to volume increase only rates are flat. 9:27 9 minutes, 27 seconds Okay. Thank you. Second question is on CBAM implementation. So what are you hearing from our customers in terms of 9:34 9 minutes, 34 seconds demand EF transition cost pass through mechanisms etc. I mean is the industry which is on the EF side of steel is like 9:43 9 minutes, 43 seconds more excited or worried from these regulatory changes? 9:48 9 minutes, 48 seconds See this if uh seaware will on steel particularly will probably kick in uh sometime in 2026 so obviously uh when 9:56 9 minutes, 56 seconds there'll be some trade barriers and I think there's talk about cut off uh steel import quotas also in EU I'm just 10:04 10 minutes, 4 seconds talking about EU so that might be uh helpful uh to the steel industry in EU which is still quite quite blasphemous 10:13 10 minutes, 13 seconds based I think it's for ESS less than 35% about 45%. So uh it'll be helpful to the 10:22 10 minutes, 22 seconds steel industry view uh for both of these reasons once Cam uh takes effect and 10:28 10 minutes, 28 seconds also uh the talk about cutting uh steel import quotas and certainly there should be some upstream in steel production in EU. 10:38 10 minutes, 38 seconds Okay. And uh then on tariff are our customers asking us to absorb some impact of reciprocal tariffs if you 10:45 10 minutes, 45 seconds could quantify the net tariff impact that is applicable to us. 10:51 10 minutes, 51 seconds See we have we now just about completing uh 2025 our business in US is done by 10:58 10 minutes, 58 seconds the calendar year. So we are hoping that by the time uh maybe another month or so in fact there was a news floating 11:05 11 minutes, 5 seconds yesterday also which and uh I don't know we have received confirmation more confirmation about that and u in times 11:13 11 minutes, 13 seconds to come we are very hopeful that might settle down to more reasonable levels as has happened uh with other countries uh 11:22 11 minutes, 22 seconds US yes it is an important market for us and any customer in US would want a similar price compared to the local uh 11:32 11 minutes, 32 seconds suppliers. So tariff whatever it is of course the customer is not going to pay that over and above the price they will 11:40 11 minutes, 40 seconds not increase their procurement cost. So we'll we'll take a call uh once we figure out finally what kind of uh 11:49 11 minutes, 49 seconds tariff finally gets applied. Right now it's a little uh early to say because we are also watching and uh 2026 is still two three months uh two months away. 11:59 11 minutes, 59 seconds We'll see uh what happens but we are my message to you is the answer to your question really is that we are hoping 12:06 12 minutes, 6 seconds that these tariffs are down. uh we would of course like to remain uh in US market 12:12 12 minutes, 12 seconds uh and we'll try uh but yes uh customers it's very clear they will why should they pay 50% higher price for verified 12:21 12 minutes, 21 seconds electrodes so obviously whatever it is 10 15 20 whatever time we sell to that's our hope what happens we can't guarantee 12:30 12 minutes, 30 seconds obviously that will have to be taken care of by us because we need a delivered price but let's say tariffs come down to 25% % 12:38 12 minutes, 38 seconds is it going to be economical for us to absorb that it entirely? 12:44 12 minutes, 44 seconds Uh it's hard to say we will see because of course when tariffs are pulled of course we we feel that internally prices 12:51 12 minutes, 51 seconds should also starting up within us. So we we will see as it comes what kind of terrace wine we apply what is the local 13:00 13 minutes price uh what happens to the local price uh in the market in US market and then we'll take a call. Okay. 13:07 13 minutes, 7 seconds See I just want to add here see uh see HV uh our uh US portion of sales is only uh 13:15 13 minutes, 15 seconds 10 to 12%. And we are supplying to 35 countries. So of course I mean we are very very well diversified. we might 13:22 13 minutes, 22 seconds have to do some uh this uh uh we might have to see other markets also but it's not as big a risk for us it's not like 13:32 13 minutes, 32 seconds that we are supplying 50% of our production to US then of course it was a big risk okay got it and a housekeeping question 13:40 13 minutes, 40 seconds at the time of de merger how much of net debt which is there in the consolidated books right now would be allocated to graphite entity and how much would be to green tech entity Okay. 13:54 13 minutes, 54 seconds Uh you go ahead and answer. 13:56 13 minutes, 56 seconds Yeah. We have a total treasury size is appro cr out of which 830 crores we have allocated to the TC and remaining with the graphite businesses. 14:06 14 minutes, 6 seconds Okay. That's very helpful. Thank you so much. Thank you. 14:16 14 minutes, 16 seconds Before we take the next question, a reminder to participants that you may press star and one to join the question cube. 14:22 14 minutes, 22 seconds The next question is from Rohan Banwal from Ahan Capital. Please go ahead. 14:31 14 minutes, 31 seconds Uh thank you very much for the opportunity. Uh so sir, my question is related to the capacity which you've 14:39 14 minutes, 39 seconds added. Uh so like you currently installed capacity of 115,000 14:46 14 minutes, 46 seconds and you've mentioned that you have an uh utilization up to 90%. So what kind of 14:52 14 minutes, 52 seconds growth uh in volumes terms and and in uh engine terms are looking going forward. 15:02 15 minutes, 2 seconds Yeah Rohan uh you see uh first of all uh just wanted to correct you uh it's 100,000 now and 15,000 capacity 15:10 15 minutes, 10 seconds expansion we have announced which will get completed by 2027 uh end and if you now coming to volume growth you're 15:18 15 minutes, 18 seconds talking about uh see last fiscal 24 25 we were at 80 roughly 80% capacity 15:26 15 minutes, 26 seconds utilization now in the first half we are 90% % plus we are hoping that by the 15:32 15 minutes, 32 seconds time we close here we are maybe between 85 and 90 maybe we are hoping for uh 90% capacityization. 15:41 15 minutes, 41 seconds So that is the kind of uh volume growth which we have seen between 2425 and 2536 which we expect and uh when of course 15:50 15 minutes, 50 seconds the expansion will take two two and uh 2 and a half years to come and once it comes uh we feel that the new electric 15:59 15 minutes, 59 seconds furnaces which are coming on stream there'll be at least 20 million metric tons which will get added. So and we uh 16:07 16 minutes, 7 seconds and even more importantly than that we want uh once the steep production which has been languishing for last two three 16:15 16 minutes, 15 seconds quarters you I'm sure you have been tracking that that when it takes up turn it it should bring uh additional demand 16:22 16 minutes, 22 seconds for graphite electrons from existing capacity as well as the new capacity. 16:31 16 minutes, 31 seconds Got it sir that's that's very good. Uh so the next question is like what the uh 16:38 16 minutes, 38 seconds product mix which you have between uh like the USB and and electrodes and how do you see it like evolving over the next two years? 16:50 16 minutes, 50 seconds Our focus is has always been and continues to be in the ultra high power segment only in BHP electro only and 16:57 16 minutes, 57 seconds proportion wise if you ask is probably a a a 7030 or something kind of u uh 17:04 17 minutes, 4 seconds portion between USB and uh non USB because some of our uh regular and long-term customers when we supply 17:11 17 minutes, 11 seconds electric uh USB electrodes also expect that we supply the uh the HP electrodes to them but it is not significant 17:20 17 minutes, 20 seconds portion really as I said in excess of 70 or maybe 75% is UHP only and in the coming expansion also uh whatever 17:29 17 minutes, 29 seconds capacity we'll be building will be focused only on QP electrons okay and 17:37 17 minutes, 37 seconds yes got it and sir uh what impact do you expect from the recent global capacity like 17:46 17 minutes, 46 seconds closers on the pricing and the order visibility I see the two plants which uh one of our 17:53 17 minutes, 53 seconds big competitor announced closure one in Malaysia and one in China. China anyway didn't have an impact globally. The 18:02 18 minutes, 2 seconds other plant probably was not anyway not running full but that's uh but you see the kind of utilization the whole 18:09 18 minutes, 9 seconds industry as an average has these capacities uh going out has not really created a big impact just because the 18:18 18 minutes, 18 seconds demand environment itself is slow but uh yes when the demand goes up and the industry level all industry I'm not 18:25 18 minutes, 25 seconds talking about HD gradually all the average utilization levels uh will increase then of the spices should start to come up. 18:36 18 minutes, 36 seconds Thank you very much sir for that answer. 18:38 18 minutes, 38 seconds One one last question from my side after that I'll join in the queue. Can you share your plans for the expanding capacity or or new opportunity you are 18:47 18 minutes, 47 seconds looking into this new opportunities pun will take this uh question because there 18:55 18 minutes, 55 seconds are several new products which the company is going to do please. Yeah, thank you so much man. Uh so uh 19:05 19 minutes, 5 seconds upon the de merger so on the HG green tech front uh there will be four businesses which will be there. One is 19:12 19 minutes, 12 seconds the anode material manufacturing which uh is currently going on. Second is the existing hydro plant. BL controls uh uh 19:21 19 minutes, 21 seconds holds 51% equity of these hydro asset and signed a definite agreement with to acquire the remaining 49% from startup. 19:30 19 minutes, 30 seconds Following the closing uh the HG green techch will own 100% of Malana and Alendagan which represent around 278 19:37 19 minutes, 37 seconds megawatt of hydro assets. Third business is uh our best EPC business. The EPC business has an installed capacity today 19:45 19 minutes, 45 seconds of 1 gawatt hour with a plan to expand to 6 gawatt by quarter 1 FI27. 19:52 19 minutes, 52 seconds It serves for both stationary energy storage and mobility application. We have strengthening our order book and 19:59 19 minutes, 59 seconds in-house BMS and EMS systems and this will support uh in discipline scaleup uh which we are doing in our best EPC. 20:08 20 minutes, 8 seconds Fourth vertical is uh uh which we are working on is the IPB which is best plus floral. The IP vertical is focused on 20:16 20 minutes, 16 seconds CNI and B2G segment with participation in the state and central tenders. The first 200 megawatt hour project is 20:23 20 minutes, 23 seconds expected to be operation by quarter 2 FI27 which is the juvenile one and with an additional uh tender of,000 megawatt 20:32 20 minutes, 32 seconds R which target to be commissioned by quarter 2 FI28. 20:37 20 minutes, 37 seconds uh we are expanding this business and expect to expect that this IP business will contribute considerably in the H green tech margins. 20:47 20 minutes, 47 seconds So the new businesses which we are doing in the H green tech all are existence. Yeah. 20:55 20 minutes, 55 seconds And will you be adding the manufacturing facility for the best side? 21:00 21 minutes So on the best side we already have a installed capacity of 1 gawatt hour that 21:07 21 minutes, 7 seconds is more on the assembly. So we we we buy tails and we assemble it in our own plant which is in Pune 21:16 21 minutes, 16 seconds and we are doing an expansion uh from 1 gawatt hour to 6 gawatt. Yeah. 21:23 21 minutes, 23 seconds Yeah. Uh so like the containers and the battery energies are all sourced from uh like are imported and then assembly is done. Am I right sir? 21:33 21 minutes, 33 seconds Yeah. Yeah. But uh our our focus now is to uh make in India. So we will do maximum things out of India only and 21:42 21 minutes, 42 seconds through a plant in coming uh coming quarters. 21:47 21 minutes, 47 seconds Got it sir. Thank you very much. That answers my question. I will join in with you. you. Thank you. 21:55 21 minutes, 55 seconds The next question is from Cherat Pachesia from SKP Securities. Please go ahead. 22:03 22 minutes, 3 seconds Good afternoon everyone. Uh so my question is from the green tech side you had guided about 500 600 cr in revenue and 200 to 225 cr in to FY26. 22:15 22 minutes, 15 seconds So could you share what the actual contribution was in S1 and how you see visibility shaping up by end of April 22:24 22 minutes, 24 seconds especially post the team uh 22:33 22 minutes, 33 seconds the H1 uh the H1A is [clears throat] primary to the hydro assets only which is already there uh the revenue which is 22:42 22 minutes, 42 seconds coming in the HC green tech level for other businesses is so that will be coming from quarter 4 of FI27 for anode 22:50 22 minutes, 50 seconds when the complant is getting commissioned. Uh the plus business is there but right now since we are doing 22:57 22 minutes, 57 seconds on an expansion basis the margins and the beta is low there but that will pick up best and IT uh the margins and 23:07 23 minutes, 7 seconds revenue will start from quarter two of 27. 23:14 23 minutes, 14 seconds about it. So, uh I think it'll be premature for an FI27 number as of now. 23:21 23 minutes, 21 seconds So uh so FI so FI27 we have some anticipation and uh some projections but uh uh it's 23:30 23 minutes, 30 seconds too early to say because these projects are under execution once these get executed we can see but uh primarily you 23:38 23 minutes, 38 seconds are uh in line with the FI26 numbers which you have mentioned and uh we we uh 23:45 23 minutes, 45 seconds we have a uh hope that the beta will be doubled in FI27 on the numbers which we have just said on 23:53 23 minutes, 53 seconds FI 26 the numbers will be doubled at least by FI 27. 23:59 23 minutes, 59 seconds All right makes sense. So the the full the full uh I'll just tell you the full 24:05 24 minutes, 5 seconds uh contribution on the beta will be coming post quarter 27 by when my anode 24:13 24 minutes, 13 seconds is been uh live and my my plus business has been live plus my ITP projects uh 24:20 24 minutes, 20 seconds which is roughly uh 650 megawatt as on today which the tenders we have won are on live. 24:29 24 minutes, 29 seconds Perfect. Thank you. 24:36 24 minutes, 36 seconds Thank you. 24:39 24 minutes, 39 seconds Participants who wish to ask questions, please press star and one. 24:43 24 minutes, 43 seconds Next question is from Rajesh Majunar from BNK Securities. Please go ahead. 24:49 24 minutes, 49 seconds Yeah, good afternoon sir. Uh so I had a few questions. uh first of all we've seen the indust the Indian players are operating at a very high utilization 24:57 24 minutes, 57 seconds rate uh last quarter and graphic is also operating at 65%. So what is your guess of the global industry utilization uh 25:06 25 minutes, 6 seconds capacity utilization rate currently uh excluding China 25:14 25 minutes, 14 seconds uh you have seen our utilization we have seen our uh Indian contribution and you also know graph that only deals with two 25:24 25 minutes, 24 seconds uh main uh suppliers either one which is uh uh RONC and then followed by Tokai I 25:31 25 minutes, 31 seconds believe should be around the graphic levels should be but I can't hazard a guess because their their figures are 25:38 25 minutes, 38 seconds not uh public but it's it's just a guess that they should be around them because they're located also in similar uh 25:46 25 minutes, 46 seconds countries and catering to similar demand. So my guess is they should be around that only. So which means the 25:54 25 minutes, 54 seconds overall industry utilization rate could be about 70 75% if you about 70%. Maybe I think so I think so 26:00 26 minutes if you combine maybe around 65 or 70 something like that in your and in your experience uh what is the industry utilization rate where 26:09 26 minutes, 9 seconds the prices can actually take an upturn is it 75 is it 80 or where do you think that that inflection point can happen 26:15 26 minutes, 15 seconds from the current level? Yeah, amazing amazing question. Yes. Yes. I I I have 26:23 26 minutes, 23 seconds that experience. Maybe it should be when it crosses uh average utilization crosses 80 85 85 once it starts close to 26:32 26 minutes, 32 seconds between 80 85 then prices start to come up. That's that's as for uh the past experience. 26:41 26 minutes, 41 seconds Okay. 80 85% is a good kind of guess. 26:44 26 minutes, 44 seconds Yeah. the number when prices start to come up. 26:47 26 minutes, 47 seconds And secondly, we hearing some murmurss of some price in the HP record side this quarter. 26:53 26 minutes, 53 seconds Is that true or do you see any kind of uptick in the HP record prices happening? 27:00 27 minutes Uh you mean uh in the October to December quarter where we are? Yes. October December quarter. Correct. 27:06 27 minutes, 6 seconds Yeah. Yeah. But that's that's very marginal. uh it's not there that was only in HP because HP prices were already low but uh this is a globally if 27:16 27 minutes, 16 seconds we see this market is uh quite uh dominated uh by Chinese players uh so the pricing I mean I'm just talking 27:24 27 minutes, 24 seconds about u I would say Indian context a very slight pricing reach and globally 27:30 27 minutes, 30 seconds also um I'm I'm not sure really whether we can really pull up an average of 27:38 27 minutes, 38 seconds basket kit of wherever we supply and actually demonstrate price increase it it will I would still say it is the same 27:46 27 minutes, 46 seconds level and the increase in uh domestic was very marginal it does nothing just to come around cost 27:54 27 minutes, 54 seconds so it is only in the domestic market is it increase no see in some markets we have little bit here and there but as I said if if I 28:02 28 minutes, 2 seconds actually pick up that average of all the sale I probably would not be able to demonstrate an increase. So somewhere 28:09 28 minutes, 9 seconds we're getting a better price, some not a better price. Actually, as I said, it's so so much dominated by China. It depends upon our sales mix where we sold, how much we sold, which customers. 28:20 28 minutes, 20 seconds So if I pull up an average of Q2 versus Q3 later, still one and a half one and a 28:27 28 minutes, 27 seconds half months to go, I I don't think I'll be able to demonstrate a even a five% or a 10% increase. I don't think so. 28:36 28 minutes, 36 seconds Globally average. Global average. Yeah. 28:38 28 minutes, 38 seconds Yeah. Great. And sir, uh what is the cost of media code for 2Q and uh what is the inventory now at of media code that you have? 28:48 28 minutes, 48 seconds Uh see price uh I won't be able to uh diverge uh honestly but it's uh not 28:55 28 minutes, 55 seconds difficult for you to uh find out u and they've been pretty static for two three quarters just like prices have been at 29:03 29 minutes, 3 seconds similar level for three quarters. the negable prices will also be that uh and the inventory in the plant are comfortable. It's our standard. I can't 29:11 29 minutes, 11 seconds disclose the real number of uh inventory but it's it's enough. It's if I see it as an average we are not low on 29:18 29 minutes, 18 seconds inventory. I would say rather we have a plus on inventory on illegal inventories that plant and transit we rather on the 29:26 29 minutes, 26 seconds high slightly on the higher side not lower side right and my if I could have the last question uh suddenly we see a kind of 29:34 29 minutes, 34 seconds capacity increase uh uh uh aroused by the Indian players after so many years and I was under the impression that 29:42 29 minutes, 42 seconds needle coke availability is a big issue in the industry so where are we getting all this needle coke from to announce the capacity in theuture combine with 29:49 29 minutes, 49 seconds that with their competitor the total increase is nearly 40 KT over 3 years. 29:53 29 minutes, 53 seconds So that kind of a nuclear coke volume is coming from some new installation or is it because of the capacity is getting 30:00 30 minutes closed? Yeah, the last question. Thank you. Uh no problem. See the way the graphite industry as we just talked is 30:07 30 minutes, 7 seconds somewhere between 65 to 70. Similarly the presently the medium capacities are also not running full. they're because 30:14 30 minutes, 14 seconds they're also tied to us and uh these refineries for big refineries uh our suppliers it's not difficult to switch 30:22 30 minutes, 22 seconds over their focus from one product to other so once the demand comes in I'm sure when it makes uh business sense for them and they can see a long-term shift 30:31 30 minutes, 31 seconds in uh demand definitely we expect them to increase their capacity because they have the technology they have all the well big refineries themselves it's just 30:40 30 minutes, 40 seconds about adding cokers or switching coers from one grade of spoke to other grade of coke. So I I don't think it'll uh 30:47 30 minutes, 47 seconds it's difficult for them. Yes, something happens temporarily. Of course, it takes time for capacity to ramp up. See, everybody's banking on one thing that yes, the shift to electric furnaces. 30:58 30 minutes, 58 seconds It's clear that this is happening. This is an irreversible process. This will bring additional demand. That's also clear. The capacity which increase which 31:06 31 minutes, 6 seconds we have announced and other peers has announced is also will take two and a half years to come. And by the time we 31:14 31 minutes, 14 seconds are banking on the new electric furnace capacities so I don't think med uh will be that much of a problem. 31:24 31 minutes, 24 seconds Okay. Thank you. Thank you. 31:29 31 minutes, 29 seconds Before we take the next question, a reminder to participants that you may press star and one to join the question queue. 31:38 31 minutes, 38 seconds The next question is from Akillesh Kumar from MK. Please go ahead. 31:42 31 minutes, 42 seconds Yeah, thank you for the opportunity and congratulations on the uh good numbers. 31:47 31 minutes, 47 seconds So, sir, my first question is uh on the uh realization. So, when I uh take the uh said utilization of 90% for 2Q, I get 31:57 31 minutes, 57 seconds the realization of around 3500 USD per ton. So is it uh around the same levels of G prices which you are tracking or is 32:07 32 minutes, 7 seconds it at some premium or discount if you can shed some light on that. 32:11 32 minutes, 11 seconds We are in a very simple business you can catch that on and when I say capacity utilization I have set it for two quarters uh of uh 90 capacity 32:21 32 minutes, 21 seconds utilization production wise and in the same breath I said that we sold more in Q2 versus Q1. you put all this together because I will neither be able to 32:29 32 minutes, 29 seconds confirm the price nor deny the price but you're close but I won't be able to confirm the 32:37 32 minutes, 37 seconds average price because this depends on all markets all put together grades everything but uh since we are only in graphite business is easy for you to 32:45 32 minutes, 45 seconds calculate right so uh the only uh part where I am not clear is that is it some uh trading 32:52 32 minutes, 52 seconds some kind of premium or discount so uh let's say if I take a standard price of G of 3,000. So then I get a premium for 33:00 33 minutes around 500 USD per turn. So am I uh tracking on the right lines or am I missing something here? 33:09 33 minutes, 9 seconds My dear friend, as I said, I won't be able to confirm or deny it. uh but I can only say if if it is helpful that uh 33:16 33 minutes, 16 seconds whatever price uh levels of today are actually at the bottom because you you you can see uh around peer group it's 33:25 33 minutes, 25 seconds very difficult to you know margins or make margins at this uh price and everybody uh everybody in the industry 33:32 33 minutes, 32 seconds hopes that this price should uh firm up from wherever they are today they're one 33:39 33 minutes, 39 seconds of the lowest we have seen in past So it's we expecting a form up on prices. So 3,000 plus 500 premium I I 33:47 33 minutes, 47 seconds won't be able to I I won't uh comment on that please but yes wherever they are they are at one of the lowest. 33:55 33 minutes, 55 seconds Okay. Okay. Got it sir. And my uh second question is on the uh general spread between the uh graphite and the needle 34:02 34 minutes, 2 seconds cook prices. So uh if you can uh like uh guide us on that part. 34:08 34 minutes, 8 seconds Okay. So uh so spread is also at the same level for last two three quarters because electro prices are where they 34:16 34 minutes, 16 seconds are good prices have also not changed and the electro prices are also at the same level and spread continues to be at 34:23 34 minutes, 23 seconds the same level and that converts cut out the variable cost and everything and that that's what you uh see in profit 34:30 34 minutes, 30 seconds figures. So if I track the historical uh prices for these two uh the spread generally comes out to be one/ird uh of 34:40 34 minutes, 40 seconds uh you know uh for needle cook prices it comes out to be one/ird of G prices. So is that trend still holding up? 34:49 34 minutes, 49 seconds It is [clears throat] uh the question you want to ask is not possible uh for me to answer but yes you have your own thumb rule. Maybe you have 34:57 34 minutes, 57 seconds observed it in the past but I I won't be able to uh attach a formula to it that you do 1/3 but 35:05 35 minutes, 5 seconds it's it's generally generally or maybe maybe yes you might be close but then it 35:12 35 minutes, 12 seconds changes it changes with time up and down but uh you you have seen the industry you know how it changes. 35:20 35 minutes, 20 seconds Okay. Okay. Thank you sir. And uh another question is on the utilization also the kind of utilization we have seen in 1 Q and 2Q uh is this uh level 35:29 35 minutes, 29 seconds of uh utilation expected to even uh go and extend it to FI 27 and 28 also. 35:38 35 minutes, 38 seconds uh I think uh I think this year uh FI26 is not a great year uh for the industry 35:45 35 minutes, 45 seconds and uh we hoping for better days ahead and uh in in next year and uh the another year because the moment the 35:52 35 minutes, 52 seconds steam production there's a uptick and new capacity is coming we expecting uh better demand levels in the next next 36:00 36 minutes fiscal year which will be helpful for capacity utilization also and uh forming of price also right good to have that kind of 36:08 36 minutes, 8 seconds confidence and uh sir uh the uh another question is on the uh briefite enote project and uh basically just want to uh 36:17 36 minutes, 17 seconds get some uh unit metrics there what kind of relations and uh we are expecting there what kind of ROC's and uh debt to 36:26 36 minutes, 26 seconds equity how we are going to fund it so if you can u shed some u light on those uh 36:33 36 minutes, 33 seconds that could be uh that will be answered by my colleagues It's pun ank so please go ahead punj 36:42 36 minutes, 42 seconds so ankur you want to take first on the business side I'll take on your numbers uh yeah so um in in case of anode I mean 36:51 36 minutes, 51 seconds the realizations are uh pretty as per the pretty as for the current market scenario where also we are seeing an uptrend and uh the we are right now we 37:00 37 minutes are pretty secured as far as our funds are also concerned and the the financial the production part is that the production will start from 2027. 37:11 37 minutes, 11 seconds So we are pretty secure in in all that and the market is quite stable because apart from China people are expecting the new players to come up and we are 37:19 37 minutes, 19 seconds among the first ones to come up in the uh in the non-China AO space. 37:24 37 minutes, 24 seconds So what kind of IRRa and bita margin we are expecting uh from this project? So we are expecting we are expecting uh data margins in the range of about 30%. 37:36 37 minutes, 36 seconds Rather 35 to 40%. 37:39 37 minutes, 39 seconds Okay. And IR also in inquiry encouraging numbers. 37:45 37 minutes, 45 seconds Okay. Okay. Thank you sir. And uh last one if I can squeeze that in also. Uh uh so the question is that our capeex 37:53 37 minutes, 53 seconds intensity uh looks higher than the competitor for the you know extended that 15 uh,000 uh tons of capacity we 38:03 38 minutes, 3 seconds are doing 650 crores. So uh why is that uh happening? If you can uh throw some light there also. 38:12 38 minutes, 12 seconds Yeah I'll take this question. See you're comparing us with the peer group and you might have also noticed that for the 38:20 38 minutes, 20 seconds first part I think they said one year while while we are saying two and a half years so that clearly shows that of 38:27 38 minutes, 27 seconds course see every plant has an opportunity to uh debottleneck some of the facilities some of the equipments have very long lead times some are 38:36 38 minutes, 36 seconds shorter so I'll just uh restrict myself with that and uh we would not like to um you 38:45 38 minutes, 45 seconds They say on competator we can only talk about ourselves because uh for example if we have to expand we have to see what 38:52 38 minutes, 52 seconds we have what we further need to take this capacity from X to Y. Similarly everybody uh does that so I can't say 39:01 39 minutes, 1 second what they have and what what they adding but I know what we have and what we adding and what it requires to take up the capacity from 100 to 115. And would 39:10 39 minutes, 10 seconds you say that the kind of capex intensity what we are having is the industry uh average or better than the industry average 39:18 39 minutes, 18 seconds if you put up a green see we are adding this capacity in the existing plant right so of course uh it'll be it'll be lower 39:27 39 minutes, 27 seconds if you go and set up a green feed plant and build every process right from scratch to finish it will be more than 39:35 39 minutes, 35 seconds double of that you see if you remember uh we In the last uh expansion of the,000 tons which we did uh there was a 39:44 39 minutes, 44 seconds capex of 1200 crores. Now we talking about 15,000 at 650 crores. You can now 39:50 39 minutes, 50 seconds now relate you can relate the two things that that was probably a a bigger uh 39:57 39 minutes, 57 seconds requirement of more processes more shops. is probably less because uh 20k,000 40:05 40 minutes, 5 seconds because we made a fresh plant mainly directed towards uh making nipples. Right. 40:12 40 minutes, 12 seconds Right. Thanks. Thanks uh for this elaborated answer. Thank you. Thank you. 40:20 40 minutes, 20 seconds Thank you. 40:22 40 minutes, 22 seconds The next question is from Rohit from I thought PMS. Please go ahead. 40:28 40 minutes, 28 seconds Uh good afternoon sir. Thank you for this opportunity sir. uh just on the overall industry uh I mean of course 40:36 40 minutes, 36 seconds China is a very big part of this industry and we've been uh we've been 40:43 40 minutes, 43 seconds they've been talking about reducing their overall supply in steel and and this is also further extended to other 40:52 40 minutes, 52 seconds industries also where they've been talking about uh not trying to be too comp too price competitive and price was 41:00 41 minutes kind of a think so uh have you seen any initial impacts of that trickling down 41:09 41 minutes, 9 seconds to the G uh to to one to the overall steel demand outside I mean uh steel 41:16 41 minutes, 16 seconds exports uh from China and and hence any other production improvements uh in other countries because of the decline 41:25 41 minutes, 25 seconds in steel from China and two as a downstream towards that any impact on GE 41:32 41 minutes, 32 seconds right now or and how do you see I mean do you see any impact if not yet do you see any impact of this happening if it 41:39 41 minutes, 39 seconds plays out um let me answer it in a way that uh you 41:47 41 minutes, 47 seconds see um it's it's true what I mentioned in the uh opening remarks that Chinese production is down and what uh Chinese 41:56 41 minutes, 56 seconds consumption is down even further so they're actually uh steel exports are increasing. So they are exporting more 42:04 42 minutes, 4 seconds steel to the world in 2025 than they did in 2024. 42:09 42 minutes, 9 seconds And because of the rest of the world making about 50 51% of the steel from electric arc furnace route. So of course 42:18 42 minutes, 18 seconds any exports of steel from China do impact the production levels in other 42:24 42 minutes, 24 seconds other all globe put as a whole exchina to that extent. uh yes of course if if China was exporting less the other 42:33 42 minutes, 33 seconds countries which are more electric are far base to the extent of 51%. they would be producing more steel and when they would be producing more steel more 42:41 42 minutes, 41 seconds electrodes would be required where and that that demands come to us I mean China all all the industry so yes 42:50 42 minutes, 50 seconds there's exports matter their production is down but as I said consumption is down even further so actually see exports are increasing from China which 42:58 42 minutes, 58 seconds of course cause a dent we may I mean it's very clear it'll cause a dent to the rest of the 43:06 43 minutes, 6 seconds understood and uh actually one reads that uh that they are turbul exports of 43:15 43 minutes, 15 seconds steel also they don't want exports to grow at least that is what the news articles are some uh at least that is what their intent is I don't know 43:23 43 minutes, 23 seconds whether there is a mismatch between the intent and what is happening as clearly you are saying there is uh so I mean uh 43:33 43 minutes, 33 seconds of was the last upcycle that happened between 15 and I mean after 2017 not 43:40 43 minutes, 40 seconds there was a huge factor of China in that where they cut shut down capacities and and 43:48 43 minutes, 48 seconds capacities and there was a talk of also EF going up China share of EF also going up 43:58 43 minutes, 58 seconds there are still I mean China is still saying that the EF share why they could not do what they said last time, but they're still saying that the gear shift has is going to go up for them. 44:09 44 minutes, 9 seconds uh how do you see uh it's an open-ended question s I mean I just want to get your sense because uh things seem to be 44:18 44 minutes, 18 seconds somewhat coming together again at least at the outside things are somewhat from a China perspective but there are sort 44:26 44 minutes, 26 seconds of bombers or talks which are pointing to what what may what happened like back 44:34 44 minutes, 34 seconds in 2016 178 something similar Do you see that as well or you know it 44:41 44 minutes, 41 seconds is still too hypothetical and and one should not really read too much into it? 44:47 44 minutes, 47 seconds Uh you see you also keep hearing these talks of that they will take the electric axan share to 20%. But the 44:54 44 minutes, 54 seconds reality is that they are still at 11 12%. So it's very difficult for us to hide a guess what they will do or not do 45:03 45 minutes, 3 seconds and how serious or how as a country they will actually take up the electric arurnest portion. Of course uh but 45:10 45 minutes, 10 seconds because rest of the world is at a much higher level of electric aris share and they the lowest but we should remember that they are more than 55% of the total 45:19 45 minutes, 19 seconds steel making of the world. So anything which they do towards electric aress will be very helpful I would say. So they've been uh there have been 45:27 45 minutes, 27 seconds statements of taking it to 20% but so far years are passing by but u they've not yet reached that level. So that that 45:34 45 minutes, 34 seconds speed which was announced that they will change over and do this and do that is uh not as much seen. Um and that's all I 45:43 45 minutes, 43 seconds can say really it's very difficult to answer your question. 45:48 45 minutes, 48 seconds No no I understand so just one small uh addition to this if if 45:56 45 minutes, 56 seconds terms of the plan of going from 11 12% to 15 or 20%. Does uh China have the 46:04 46 minutes, 4 seconds capacity to exist in capacity to put more capacity for required electro. 46:12 46 minutes, 12 seconds So yeah they have lot of capacity. 46:15 46 minutes, 15 seconds Yeah. Yeah. They have lot of capacity of electrode making most of which is the HP grade variety and some of it is USB 46:25 46 minutes, 25 seconds grade variety. So internally within China there are many electrode companies making electrodes they're exporting a lot of electrodes which are predominantly SP grade to other 46:33 46 minutes, 33 seconds countries. So internally if the EA goes up actually it'll be helpful because they'll be able to use the excess 46:40 46 minutes, 40 seconds capacity of electrodes within China and not impact the rest of the world with their exports. 46:49 46 minutes, 49 seconds I should last from your uh like you you are one of the largest shareholders of 46:55 46 minutes, 55 seconds uh uh graph tech. Uh so I mean uh what are your thoughts on on then I mean is 47:03 47 minutes, 3 seconds is it purely a financial investment for you or are you also thinking about I mean a backward integrator as you've 47:10 47 minutes, 10 seconds also highlighted. So as we speak it's purely investment. It's purely investment. 47:17 47 minutes, 17 seconds As we speak. 47:20 47 minutes, 20 seconds Okay. Okay sir. Okay sir. Thank you very much and all the very best. Thank you very much. Thank you. 47:28 47 minutes, 28 seconds Thank you. Next question is from Amit Loti from MK. Please go ahead. 47:34 47 minutes, 34 seconds Thanks for the chance again. So when we say needle cook refineries can bring in new capacity faster than typically what graphite electro players uh can do. 47:46 47 minutes, 46 seconds Would it be fair to say that our pricing power would be better than them when the demand turns? Is that right understanding? 47:54 47 minutes, 54 seconds See their electrol prices and book prices they go in tandem. When electrical prices go up, of course, they wouldn't be left behind and they would 48:02 48 minutes, 2 seconds also like a share of the good times of profits. So, of course, as we have seen, you you must have noticed in 2017, 18 48:10 48 minutes, 10 seconds and 19 that gold prices went up very high because electro prices were also high. So, it follows with a lag once 48:18 48 minutes, 18 seconds once electro prices start to firm up and go prices start to firm up. That that's usual. Uh 48:28 48 minutes, 28 seconds but from a demand supply perspective when we say that they can bring new capacity faster than us uh they can come 48:36 48 minutes, 36 seconds into over supply also which is faster than the graphite guys. So with that respect uh their priceite should be 48:45 48 minutes, 45 seconds lower than the graphite guys. So that is what I was thinking. 48:50 48 minutes, 50 seconds Uh let me let me clarify this point. See these are big refineries or these uh medium plants attached to refineries. 48:58 48 minutes, 58 seconds They have the technology and they have uh the coers and everything is there. 49:02 49 minutes, 2 seconds They have all the wear to increase rather than a new company coming in and setting up a needle coke plant of they 49:10 49 minutes, 10 seconds will be faster. That's that's what I meant when I said that uh when they uh the needle cook suppliers when they see 49:16 49 minutes, 16 seconds an actual a step up of requirement they have all the technology the resources and the wherewithal to increase their 49:25 49 minutes, 25 seconds capacity better than any new player coming in. 49:32 49 minutes, 32 seconds Okay, understood. Yeah. And then secondly in the last quarter we were highlighting expectation of improvement 49:39 49 minutes, 39 seconds in demand in second half of FY26. So I realize that expectation still remains but any incremental color you could 49:47 49 minutes, 47 seconds provide specifically on Q3 which is the running quarter. 49:51 49 minutes, 51 seconds Q3 is going to be uh it's going to remain the same and we keep hoping about it and but things are just not they're 49:59 49 minutes, 59 seconds taking time to turn around. See the seal production just look at seal production every time there's a forecast from world 50:06 50 minutes, 6 seconds seal association the next year this will happen that will happen when the year comes it doesn't happen so and you see what the geopolitical situation is so 50:15 50 minutes, 15 seconds once that economic boom is there when uh and then the steel follows the economic boom and so will the electro demand so 50:24 50 minutes, 24 seconds the comments which we made earlier there we are hoping that uh they should be firming in price if you're asking about 50:31 50 minutes, 31 seconds the quarter which we already in. No, it is taking time to happen. No, it's not happening this quarter or next. 50:38 50 minutes, 38 seconds But but it's it's it's it must the moment we see uptake it it it should be a quick uh you know turnar around. 50:48 50 minutes, 48 seconds Understood. Yeah. Thank you. Thank you. Thank you. 50:53 50 minutes, 53 seconds Thank you. The next question is from Ahmed Mada from Unifi Capital. Please go ahead. 51:01 51 minutes, 1 second Yeah, thanks for the opportunity. Uh so I had this question. So current year current utilization is so high. Is there 51:08 51 minutes, 8 seconds an element of uh bunching up of shipments to us or anything as such or you think uh few utilization is 51:18 51 minutes, 18 seconds sustainable uh in second half also based on your visibility of uh contracts and volumes. 51:25 51 minutes, 25 seconds Okay. So for the first two quarters which went by uh as I said it's it's slightly uh above 90 and I also said 51:34 51 minutes, 34 seconds that by the time we close the year we we should be around that figure close to 90 little less than 90 that that's it. So uh we should be able to sustain this. 51:45 51 minutes, 45 seconds It's not about uh US orders getting bunching up quarter to quarter sales. uh historically if you see it varies which orders are there uh when what deliveries 51:54 51 minutes, 54 seconds we have what order book we have but uh it is you can see if you compare with 2425 where we were at 80% now first half we are at 90%. 52:05 52 minutes, 5 seconds And we hope in the next two quarters also we should be close to that level. 52:09 52 minutes, 9 seconds Should be close maybe marginally under 90 marginally over. So you can see a clear difference between the 80s of 2425 52:17 52 minutes, 17 seconds versus the 90 of 2526 or slightly under 90 is very difficult because you see we are booking orders quarter by quarter. 52:26 52 minutes, 26 seconds So as we speak okay I can still be reasonably uh confident about the quarter we are in but Jan to March order book is still being booked. 52:37 52 minutes, 37 seconds Okay. Uh got it. And in terms of US market assuming the uh tariffs don't go 52:44 52 minutes, 44 seconds down uh quickly then in that case uh next year uh the we have to diversify 52:52 52 minutes, 52 seconds volumes from US to non- US markets. In that case, what will be the realization gap for us in US market and uh non- US 52:59 52 minutes, 59 seconds markets where you think you can uh sell the volumes? 53:04 53 minutes, 4 seconds Uh I wish I had an answer but he'll cross the bridge when we come to it. So right now we are living with the hope that as all the trades all over globally 53:13 53 minutes, 13 seconds have been almost done only we remain and we are really hoping that it settles down. As uh I was saying uh there was some some news floating around yesterday 53:22 53 minutes, 22 seconds and I was looking for confirmations uh about anything happening between US and India but yes the talks are on they're not stalled um that's what we believe 53:31 53 minutes, 31 seconds that both the countries are talking to each other there may be some tricky tricky issues to resolve but I think with India globally only India is at 45% 53:40 53 minutes, 40 seconds maybe I think Brazil is also of that level but let's see I mean I can't comment more than that um except saying that we'll cross the bridge when we come to it. 53:50 53 minutes, 50 seconds Sure. Uh and regarding the non-Indian competitors, obviously everyone has closed down uh one or two of their 53:57 53 minutes, 57 seconds efficient plan plants but uh how do you see because today they are at break even. So uh break even in terms of their 54:06 54 minutes, 6 seconds profitability. So is there a scope or a discussion of uh those players thinking 54:13 54 minutes, 13 seconds of price X so that they can come to a certain level of profitability and eventually we can also uh later come up 54:21 54 minutes, 21 seconds with price X. Is there any sort of such discussion uh for new contracts or is it far away? 54:29 54 minutes, 29 seconds uh see I have seen some public announcements everybody see all the all the industry needs a price increase to 54:36 54 minutes, 36 seconds have uh healthy margins and to continue expanding continue doing that so but um that's about it now what we when the 54:45 54 minutes, 45 seconds 2026 orders open up we'll see how much is happening on the ground so right now we are in November and once we uh in 54:53 54 minutes, 53 seconds times to come we will see and there may be 1 2 3 months we'll see how much priceing up is happening or not happening because the demand is still 55:00 55 minutes subdued but the graphite industry as a whole everybody needs a price increase. 55:08 55 minutes, 8 seconds All right. Uh last question in terms of our European business, can you give what share of our uh volumes come from Europe 55:16 55 minutes, 16 seconds region and uh if there are duties as uh there is discussion going on and import 55:24 55 minutes, 24 seconds quotas and assuming the production of European players will go up in that case? Uh do you see any sort of benefits coming to us uh an exponential year? 55:36 55 minutes, 36 seconds See this is going to happen in 2026 when they announce what they announce it it'll actually uh depend on that the the 55:44 55 minutes, 44 seconds quarters they are talking about and C ban all is going to happen in 2026 what is the quantum we will know u uh next 55:52 55 minutes, 52 seconds year and how much impact it will have how much uh uh there'll be internal uh uh increase in uh production uh within 56:00 56 minutes EU so uh can't say today reality honestly Okay. But can you tell what is our share of volume from year off? 56:11 56 minutes, 11 seconds Ah I would say you say 10 12%. 56:14 56 minutes, 14 seconds For year 12 we are very well in all economies we are actually quite evenly spread. So if if I had a guess maybe 56:23 56 minutes, 23 seconds it's around uh close to let's say close little less than 10%. 56:29 56 minutes, 29 seconds Okay. Sure. Uh thank you so much. Thank you. 56:36 56 minutes, 36 seconds The next question is from Rohan Baranwal from Arihan Capital. Please go ahead. 56:43 56 minutes, 43 seconds Uh thank you very much sir for the opportunity. Uh my question is on the margin side. So uh what kind of margin improvement we are looking uh going 56:52 56 minutes, 52 seconds forward in FI26 sir and how it how it will improve going forward uh like will it be coming from the side of uh pricing 57:02 57 minutes, 2 seconds price normalization or from the side of cost benefits the vehicle prices continue to be where 57:10 57 minutes, 10 seconds they are uh they're not increasing nor decreasing and the electro prices as we already in Q3 57:16 57 minutes, 16 seconds half of Q3 three is already gone. So here we looking at in Q3 we do not see any margin improvement. Q4 order book is 57:24 57 minutes, 24 seconds under construction. We will see how it uh plays because as I just just said that we are booking quarter by quarter 57:31 57 minutes, 31 seconds that that's what is happening in our industry. So I don't have any uh had I some long-term orders even if I was booked for let's say 60 70% of the 57:40 57 minutes, 40 seconds volumes uh like in good times it used to happen that way but we not uh we just go booking quarter by quarter. So if there's any uptick maybe in Jan to March 57:49 57 minutes, 49 seconds I can't say but this quarter it doesn't seem because half of it is already gone. 57:53 57 minutes, 53 seconds So but margin will be similar similar to the last two quarters I would say. 57:59 57 minutes, 59 seconds uh in the long term also sir no in long term of course we we are putting expansion doing this and doing 58:06 58 minutes, 6 seconds that we we of course expect that uh with the kind of demand which should come in because with new electric furnaces 58:15 58 minutes, 15 seconds demand should go up and uh so the prices should also come up yeah so I'm only talking about these next two quarters 58:22 58 minutes, 22 seconds the Q3's and the Q4 but medium to longterm we we are of course uh bullish about the electro industry Three. 58:32 58 minutes, 32 seconds Got it. Any numbers to put on uh that side sir? 58:35 58 minutes, 35 seconds No, not possible. I wish it was but it is not. 58:40 58 minutes, 40 seconds Thank you sir. And sir, one last question is uh on the that side actually. So can you provide a timeline of how much debt we are expecting to add 58:48 58 minutes, 48 seconds going forward like in F26 or FI 27? 58:54 58 minutes, 54 seconds No way. We have already Yeah, we already explained in our opening remarks that we we are the long-term debt free and we 59:01 59 minutes, 1 second are not going to add any debt in future also. Okay, great. Got it. So, thank you. 59:07 59 minutes, 7 seconds That's nice question. Thank you very Thank you. Next question is from Ahmed Mada from Unifi Capital. Please go ahead. 59:18 59 minutes, 18 seconds Uh I just wanted to understand when you say the new EF capacities coming up globally. Uh so I mean obviously we can 59:27 59 minutes, 27 seconds uh search a bit and see what kind of capacity coming up in your sense over FI not FI 26 rather CY 26 and C27. 59:37 59 minutes, 37 seconds What sort of capacity you see coming up in electric arc funnels? Is there any math around it? Uh to understand 59:44 59 minutes, 44 seconds incremental uh demand for electrodes, it's about uh 20 million metals which should get added the next two years. 26 59:53 59 minutes, 53 seconds and uh 27. So if you roughly divide it by let's say 1.5 G per ton that uh 59:59 59 minutes, 59 seconds translates to about uh 30,000 uh tons uh demand increase. 1:00:06 1 hour, 6 seconds I'm just talking about next two years. 1:00:09 1 hour, 9 seconds Okay. And in terms of inventory situation uh as a steel steel industry as a whole is do they have lot of 1:00:17 1 hour, 17 seconds inventory for electrodes available or are they keeping low inventories currently considering prices have been 1:00:23 1 hour, 23 seconds falling for last few quarters and now it is quite stable. They don't have there's no over inventory of uh 1:00:31 1 hour, 31 seconds electrodes uh with our customers. It's the usual self depending on which country you are. somebody gives a month if they are suppliers locally somebody 1:00:39 1 hour, 39 seconds gives two months if they are an offshore uh supplier so these are the the seal industry I believe has normal level of 1:00:48 1 hour, 48 seconds inventories today there's no overrise uh situation uh with our customers because we can see from the buying 1:00:57 1 hour, 57 seconds behavior also that they're consistently buying buying and as as exactly as their demand is so I don't think there is an 1:01:05 1 hour, 1 minute, 5 seconds over inventory situation steel customers and in terms of China's supply of electrodes right 1:01:14 1 hour, 1 minute, 14 seconds uh with the new demand coming up either because of the increase in non uh China steel production or with the new year capacity will be possible that the 1:01:23 1 hour, 1 minute, 23 seconds incremental demand goes to Chinese people who who are probably selling the product at lower prices are they increasing their own supply is there any 1:01:31 1 hour, 1 minute, 31 seconds sense we have we are also a competitive uh cost producer just according because of our 1:01:40 1 hour, 1 minute, 40 seconds uh size being big at one location uh in India and I think uh we in a good position uh to compete. Yeah, of course 1:01:48 1 hour, 1 minute, 48 seconds this low pricing and this of course it hurts but still uh we we also have reasonable level of uh costs. So we 1:01:56 1 hour, 1 minute, 56 seconds should be able to compete in the market and uh again the Chinese capacity which they have is uh predominantly on the HP 1:02:04 1 hour, 2 minutes, 4 seconds grade variety and lesser on the USP grade variety. So yeah we have to uh we have to survive we we have to uh we have to be competitive at all times. 1:02:17 1 hour, 2 minutes, 17 seconds Okay. And is there any sense on uh China supply of electrodes here? Has there been any new capacity addition deletions in recent quarters or recent years? 1:02:28 1 hour, 2 minutes, 28 seconds What I can capacity is broadly similar. So that is from the public. 1:02:34 1 hour, 2 minutes, 34 seconds Yeah, it's similar. They have not added they have not deleted either. So they're at the level which they were maybe in last 3 years the capacities of electrode 1:02:44 1 hour, 2 minutes, 44 seconds have remained at the same uh level not increased. Okay. Sure. Uh that is from my side. 1:02:52 1 hour, 2 minutes, 52 seconds Thank you so much. Thank you. Thank you very much. 1:03:00 1 hour, 3 minutes That was the last question in Q. As there are no further questions, I would now like to hand the conference over to Mr. Gulati for the closing remarks. 1:03:10 1 hour, 3 minutes, 10 seconds Thank you. Thank you very much uh friends for listening to our Q2 conference call and uh hopefully uh when we talk next quarter or next maybe we'll 1:03:18 1 hour, 3 minutes, 18 seconds be able to provide a better outlook for 2026. Thank you so much. 1:03:26 1 hour, 3 minutes, 26 seconds Thank you very much on behalf of SKP Securities Limited. That concludes the conference. Thank you for joining us ladies and gentlemen. You will now disconnect your lines. 1:03:36 1 hour, 3 minutes, 36 seconds Thank you. Thank you.