IFGL Refractories Limited — Q3 FY26

IFGL Refractories Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=Uftl7Zr1wtQ Published: 2 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to IFGL Refractories Limited Q3 FI26 earnings conference call hosted by 0:09 9 seconds Monarch Network Capital Limited. This conference call may contain forward-looking statements about the company which are based on the beliefs, 0:17 17 seconds opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risk and 0:27 27 seconds uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listenon mode and 0:34 34 seconds there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please 0:43 43 seconds signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being 0:50 50 seconds recorded. I now hand the conference over to Mr. Sahil Sanvi from Monarch Network Capital Limited. Thank you and over to you Mr. Sanvi. 1:00 1 minute Yeah, thank you Bum. Good evening everyone. On behalf of Monaf Network Capital, I welcome you all to the Q3 FI26 earnings conference call of 1:08 1 minute, 8 seconds Refactories Limited. We are pleased to have with us the management being represented by Mr. James Macintosh, the managing director, Mr. Arasu Shan 1:17 1 minute, 17 seconds Mugham, Director and Chief Executive Officer India and Mr. Amitarwal, Chief Financial Officer. We'll have the opening remarks from the management 1:25 1 minute, 25 seconds followed by the Q&A. Thank you and over to the management for the opening remarks please. 1:39 1 minute, 39 seconds Good evening ladies and gentlemen. Thank you for joining us on the IFG factories limited to three and 91 1:48 1 minute, 48 seconds FY26 earnings conference call. I hope you and your family and friends are in good health. Joining me on the call 1:56 1 minute, 56 seconds today are Mr. Aru Shan Mam, director and CEO area and Mr. Amit Agarwal, our CFO 2:05 2 minutes, 5 seconds and SGAA, our investor relations advisors. 2:09 2 minutes, 9 seconds Our results and investor presentation have been uploaded in the stock exchanges and we trust that you have had 2:15 2 minutes, 15 seconds an opportunity to review them. I am pleased to share that we delivered healthy revenue growth during the 2:22 2 minutes, 22 seconds quarter. Consolidated revenue grew by 23% yearonear while standalone revenue increased by 16%. 2:32 2 minutes, 32 seconds Gross margins moderated during the period due to changes in product and sales mix. Ebida margins were impacted 2:40 2 minutes, 40 seconds by elevated employee costs and related overheads during the quarter. We have initiated cost optimization measures and 2:48 2 minutes, 48 seconds expect gradual improvement in margins over the coming quarters standing 2:56 2 minutes, 56 seconds into a margin of 6.5% so that was 25. 3:06 3 minutes, 6 seconds Now let me briefly touch upon the global steel industry outlook and we continue to operate in a volatile global environment. 3:14 3 minutes, 14 seconds As per the latest outlook by the world steel association, global steel demand is expected to remain broadly flat followed by a modest recovery in 2026. 3:25 3 minutes, 25 seconds Whilst trade tensions and geopolic resurfaces, infrastructure investments under improving financial conditions are 3:34 3 minutes, 34 seconds expected to support gradual stabilization. 3:39 3 minutes, 39 seconds Regionally, China's fuel demand is projected to decline by around 2% in 2025 3:46 3 minutes, 46 seconds with the pace of decline moderating in 2026 as the housing sector stabilizes. 3:52 3 minutes, 52 seconds In the US, demand is expected to grow by approximately 1.8% in both 2025 and 2026, 4:01 4 minutes, 1 second supported by infrastructural spending as Europe is also expected to witness a 4:10 4 minutes, 10 seconds gradual recovery with demand projected to grow in the region of 1 to 3% over 202526 4:18 4 minutes, 18 seconds aided by infrastructure and defense spending. Importantly for us, India continues to remain a key 4:27 4 minutes, 27 seconds growth engine with steel demand projected to go by around 9% over 2025 4:34 4 minutes, 34 seconds and also in 2026 driven by broad-based expansion across steel consuming sectors. Demand growth 4:43 4 minutes, 43 seconds is also expected to remain robust across several developing economies. 4:49 4 minutes, 49 seconds Against this backdrop, our strategic focus on domestic operations has yielded strong results. India remains one of the 4:58 4 minutes, 58 seconds fastest growing steel markets globally and in our India made India sold strategy has delivered meaningful 5:05 5 minutes, 5 seconds traction on a 9-month basis. Our India made an India small business grew by 25% 5:11 5 minutes, 11 seconds yearonear reaching 648 crore in revenues reinforcing the strength of our domestic 5:19 5 minutes, 19 seconds positioning and gaining the market share. 5:23 5 minutes, 23 seconds Moving ahead, our American operations have shown encouraging improvements during the quarter. The recent tariff 5:30 5 minutes, 30 seconds related developments calibrated price adjustments with key customers and a rebound in demand supported strong performance. 5:38 5 minutes, 38 seconds Revenue by our US operations grew by 37% yearonear. Profitability in the region 5:45 5 minutes, 45 seconds has also improved on a sequential basis and we are confident of carrying this momentum into Q4 subject to stable market conditions. 5:58 5 minutes, 58 seconds In Europe, revenue grew by 39% yearonear whilst overall regional demand remains 6:05 6 minutes, 5 seconds challenging. We have taken structural changes within the team and repositioned our focus for application equipment 6:12 6 minutes, 12 seconds towards core refractory products. These initiatives have begun to show results at the revenue level. However, profitability in the region remains 6:21 6 minutes, 21 seconds under pressure due to higher operating costs. We are working towards operational improvements and aim to move 6:28 6 minutes, 28 seconds towards break even over the next financial year assuming stable macro conditions. 6:35 6 minutes, 35 seconds Sheffield Refractories has been operating steadily and continues to progress at a measured pace. The technology transfer to India is underway 6:45 6 minutes, 45 seconds and is expected to be completed by March 2026. 6:50 6 minutes, 50 seconds Whilst there has been some delay, the process is moving forward in a structured manner following completion. 6:56 6 minutes, 56 seconds The localized products will undergo tiles at the leading cement plants in India for short creating and related applications. 7:04 7 minutes, 4 seconds Beyond these geographies, we are also strengthening in our presence in Middle East and Australia where we see emerging 7:12 7 minutes, 12 seconds opportunities and potential for incremental growth over the mutual term. 7:17 7 minutes, 17 seconds In conclusion, while the operating environment remains dynamic, we believe the company is positioned on a stable 7:24 7 minutes, 24 seconds footing. Our focus remains on disciplined execution, improving cost structure, strengthening regional operations and enhancing products. 7:36 7 minutes, 36 seconds With steady demand in India, improving traction in the USA and structural initiatives are underway in Europe. We 7:43 7 minutes, 43 seconds are working towards gradual margin recovery and sustainable growth. We remain committed to long-term value creation for all of our stakeholders. 7:53 7 minutes, 53 seconds Before I conclude, I'd like to share an important update. As part of our previously announced succession planning, I will be stepping down as 8:03 8 minutes, 3 seconds managing director of the company upon the close of business hours in the 28th of February 2026 and will also cease to be a director effective 1st of March 2026. 8:15 8 minutes, 15 seconds Based on the recommendation of the nomination and remuneration committee, the board has appointed Mr. here praasporia as managing director of the 8:25 8 minutes, 25 seconds company for a period of three years commencing the 1st of March 20126. 8:31 8 minutes, 31 seconds I am very confident that under his leadership the company will continue to build on its strong foundation and pursue its long-term strategic objectives. 8:42 8 minutes, 42 seconds By open remain associated with the company and its wholly own subsidiary IFGL Worldwide Holdings Limited in a 8:50 8 minutes, 50 seconds consulting capacity for a period of 3 years from March the 1st 2026 ensuring continuity and smooth transition. 9:01 9 minutes, 1 second I can say it's been an immense privilege and honor to serve as managing director of this company and I'm deeply grateful to the board, our employees, customers, 9:10 9 minutes, 10 seconds partners and shareholders for the trust and support throughout my tenure. I take immense pride in what we have collectively achieved and remain 9:18 9 minutes, 18 seconds confident in the company's future journey. Thank you for the opportunity to lead this organization. 9:25 9 minutes, 25 seconds With this now, I'd like to hand over to Arasa for his comments on our developments in the Indian region. 9:34 9 minutes, 34 seconds Thank you, Jim. Uh good evening everybody. 9:39 9 minutes, 39 seconds We uh delivered a stable performance in uh Q3 FI26 reflecting our continued 9:48 9 minutes, 48 seconds efforts strengthen market positioning and expand share across key regions on a 9:55 9 minutes, 55 seconds consolidated basis. Total income increased by 23% yearonear while standalone revenue grew by 16 largely 10:04 10 minutes, 4 seconds driven by strong momentum in the domestic market. profitability during the quarter was impacted by as it was 10:11 10 minutes, 11 seconds mentioned higher employee expenses and related overheads. In addition, lower 10:18 10 minutes, 18 seconds export offtake and continued investments in business development and marketing initiatives weigh down uh margins. 10:27 10 minutes, 27 seconds We have already initiated targeted cost rationalization measures and expect gradual improvement going forward. 10:36 10 minutes, 36 seconds Uh turning to operations, our India business continues to perform strongly and remains the core growth driver. 10:45 10 minutes, 45 seconds Domestic uh revenues uh grew by 17% yearonear in Q3 F26 and by 25% 10:55 10 minutes, 55 seconds for the 9 month end period reaching uh 648 crores. Consequently, the domestic segment's contribution to 11:03 11 minutes, 3 seconds standalone revenue increased to 78% in 9 month from 71% in the previous year. 11:12 11 minutes, 12 seconds Export revenues for the quarter uh grew by 13% yearonear to 62 cr. Our uh 11:20 11 minutes, 20 seconds focused approach towards the domestic market has strengthened our engagement with leading steel producers supported 11:29 11 minutes, 29 seconds by advanced technology capabilities and continuous innovation at our R&D center. 11:37 11 minutes, 37 seconds We have expanded our customer base and deepened penetration across steel and 11:44 11 minutes, 44 seconds cement plants. We are also seeing encouraging traction in the non-ferris 11:50 11 minutes, 50 seconds segment which we believe will emerge as an important uh growth avenue. 11:58 11 minutes, 58 seconds On the expansion front, our green field project at Kura Wisa has commenced and is progressing as planned uh with a 12:07 12 minutes, 7 seconds completion target by the end of financial year 2728. 12:15 12 minutes, 15 seconds Uh our second uh facility in Gujarat being developed through a joint venture with Marvel 12:23 12 minutes, 23 seconds um is also seeing a good development even by a government of India measures 12:32 12 minutes, 32 seconds like the commencement of direct flight from China to India as well as the 12:40 12 minutes, 40 seconds opening up of online business visa. So this will uh help us take the project uh from here on uh with better speed. 12:53 12 minutes, 53 seconds During the quarter, we made meaningful progress on the product and uh technology front which we believe will 13:01 13 minutes, 1 second support long-term growth and customer uh you know uh retention. 13:10 13 minutes, 10 seconds Our in-house uh tube changer refractories in a segment previously which is a segment previously dominated 13:19 13 minutes, 19 seconds by global suppliers are now delivering uh measurable productivity gains for customers. These solutions are enabling 13:28 13 minutes, 28 seconds longer casting sequences and increasing tundis capacities uh you know from 30 to 70 metric t 13:35 13 minutes, 35 seconds directly improving plant efficiency and throughut. 13:39 13 minutes, 39 seconds Similarly our snarkles continue to outperform industry 13:46 13 minutes, 46 seconds benchmarks against a typical industry uh life of 65 to 80 heats. Our products 13:54 13 minutes, 54 seconds have delivered 85 to 119 heats at uh leading Indian uh steel plants. This 14:02 14 minutes, 2 seconds superior performance enhances customer economics by reducing downtime and refractory consumption strengthening our value proposition. 14:13 14 minutes, 13 seconds On the automation side, we introduce the tape changer mechanism SIBHS D1 system 14:21 14 minutes, 21 seconds designed for high quality steel making environment. The system combines advanced control, precision engineering 14:29 14 minutes, 29 seconds and built-in safety mechanisms to ensure consistent and repeatable operations. In 14:36 14 minutes, 36 seconds simple terms, it improves operational stability for customer which is increasingly critical in modern steel plants. 14:48 14 minutes, 48 seconds Our total refractories management uh TR model is witnessing encouraging acceptance in the market and we are 14:57 14 minutes, 57 seconds currently engaged in advanced discussions with uh multiple steel producers through 15:05 15 minutes, 5 seconds uh total factories management. We go beyond supplying individual products to products and instead provide end-to-end 15:14 15 minutes, 14 seconds refractory solutions including application support and uh performance optimization. 15:20 15 minutes, 20 seconds This approach enhances customer integration, improves operational visibility and helps create more 15:29 15 minutes, 29 seconds predictable and recurring revenue streams over the long term. 15:35 15 minutes, 35 seconds Uh to conclude, the quarter reflects steady progress not only in revenue growth but also in strengthening our 15:43 15 minutes, 43 seconds techni technological capabilities, customer engagement and long-term strategic positioning. While short-term 15:52 15 minutes, 52 seconds profitability has been impacted by cost pressures, the underlying business momentum remains intact. 15:59 15 minutes, 59 seconds We continue to focus on improving operational efficiencies, driving higher value added product mix, expanding our 16:08 16 minutes, 8 seconds domestic and international presence, and executing our capex plans in a disciplined manner. With improving 16:17 16 minutes, 17 seconds traction in key markets, growing acceptance of our advanced solution, stronger customer relationship, we 16:25 16 minutes, 25 seconds believe we are building a more resilient and scalable business platform. We 16:32 16 minutes, 32 seconds remain committed to delivering sustainable growth and long-term value for all our stakeholders. 16:40 16 minutes, 40 seconds Thank you. And uh we are now happy to uh take your uh sorry uh with this now I 16:49 16 minutes, 49 seconds hand over to uh Mr. Amit Agarwal CFO for 16:55 16 minutes, 55 seconds financial performance. Amit thank you sir. 17:01 17 minutes, 1 second Let me just give you a brief on the financials starting with the standum financial highlights. Total income for quarter 3 17:09 17 minutes, 9 seconds FI26 stood at rupees 272 cr reflecting a healthy 16% year-on-year growth for 9 17:18 17 minutes, 18 seconds month FI26 total income was 839 cr up by 13% yearonear 17:24 17 minutes, 24 seconds gross margin were 44.4% in quarter 3 FI26 and 45.4% 4% for 9 months FI26 17:34 17 minutes, 34 seconds margin migrated during the quarter due to change in product and sales mix AITA 17:40 17 minutes, 40 seconds for the quarter 3 FI 26 to 17.8 8 cr aa margin was 7% for the quarter and 11% 17:47 17 minutes, 47 seconds for 9 month per year end date margin during the quarter were affected by higher employee cost increase investment 17:56 17 minutes, 56 seconds uh in business development and marketing activities we have initiated the targeted cost uh rationalization 18:05 18 minutes, 5 seconds measures and expected gradual improvement in the coming quarters 18:12 18 minutes, 12 seconds The court also include an exceptional expense of approximate 4.8 cr related to implementation of new labor code 18:21 18 minutes, 21 seconds adjusted path after counting of the exceptional items stood at 1.3 cr for the quarter 3 FY26 and rupes 31 cr for 9 18:29 18 minutes, 29 seconds month FY26 breaking it down further by domestic and export sales. 18:36 18 minutes, 36 seconds Our domestic business recorded a robust 17% year-on-year growth in FY 26 quarter 18:42 18 minutes, 42 seconds 3 and a 25% growth for 9 month FI26 reaching at 648 cr. The domestic market 18:50 18 minutes, 50 seconds contributed 78% of our standalone revenue in f 9 month ended FY26 up from 18:58 18 minutes, 58 seconds 71% in 9 month ended FY25. Our export business saw growth of 13% year-on-year 19:06 19 minutes, 6 seconds to 62 growth contributing 22% of the standum revenue in quarter 3 FY26 19:12 19 minutes, 12 seconds compared to 29% in quarter 3 FY25 for 9 month FY26 exports were lower by 19:19 19 minutes, 19 seconds 12% primary due to strategic uh shift in the focus towards domestic market. 19:26 19 minutes, 26 seconds Now let me move forward to consolidated consolidated financial highlights. 19:32 19 minutes, 32 seconds Our consolidated financial highlights also include our international success rate. Total income for quarter 3 FI26 19:39 19 minutes, 39 seconds grew by 23% year on year to rupees 470 cr for 9 19:45 19 minutes, 45 seconds month FI26. Total incomes to that 1418.2 2 cr reflecting 16% growth year on year 19:54 19 minutes, 54 seconds for the quarter was 25 cring 27% year-on-year increase for 9 month period 20:00 20 minutes stood at 104 crit margin were 5.3% in quarter 3 fi26 and 7.3% for 9 month fi26 20:10 20 minutes, 10 seconds at consolidated level margins were impacted by change in product mix higher employee cost and as we said uh expense 20:19 20 minutes, 19 seconds towards uh business development and marketing initiatives. We witnessed a double-digit growth across three key 20:27 20 minutes, 27 seconds international geographies. US delivered the growth of approximately 37% during the quarter and continues to demonstrate healthy operation momentum. 20:37 20 minutes, 37 seconds Europe recorded a growth of around 39%. 20:39 20 minutes, 39 seconds However, recovery in certain market remains gradual. uh and a few operation 20:46 20 minutes, 46 seconds reported lost during the period that said our seaf factory uh UK business is 20:53 20 minutes, 53 seconds progressing steadily in line with our operational good and strategic priorities. 21:00 21 minutes The quarter include an exceptional charge of rupees 4.8 cr arising from the 21:07 21 minutes, 7 seconds implementation of new labor law which had an impact at a group level during the period. Adjusted profit after tax 21:15 21 minutes, 15 seconds after accounting for exceptional items stood at 1.3 cr for quarter 3 FI26 and 30.9 cr for 9 month FI26. 21:25 21 minutes, 25 seconds With respect to liquidity position, we have a debt of 199.8 cr with a strong balance sheet. Cash is equivalent to 21:34 21 minutes, 34 seconds that 122 cr on consolidated basis as on December 2025. 21:42 21 minutes, 42 seconds With this I shall now leave the open leave the floor open for question answer. Thank you. 21:49 21 minutes, 49 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 21:57 21 minutes, 57 seconds star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you 22:04 22 minutes, 4 seconds may press star and two. Participants are requested to use hand senses while asking a question. Ladies and gentlemen, 22:12 22 minutes, 12 seconds we'll wait for a moment while the question Q assembles. 22:17 22 minutes, 17 seconds Again, if you wish to register for a question, you may press star and one. 22:27 22 minutes, 27 seconds Our first question comes from the line of Rohan Ma from Nexus Capital. Please go ahead. 22:35 22 minutes, 35 seconds Yes. Uh, thank you very much for the opportunity. Uh, am I audible, sir? Yes. 22:42 22 minutes, 42 seconds Yes. Uh so I have three questions. So firstly sir under this uh total refactory management model uh can you give us some idea what would be the 22:51 22 minutes, 51 seconds revenue visibility and margin profile compared to the traditional product sales. Okay other two questions. 23:00 23 minutes Uh so okay uh so I've seen uh this you know US revenues have grown 37% on y 23:07 23 minutes, 7 seconds basis uh you know benefiting from the tariff period development and the price adjustments. So just wanted to understand how much of this growth would 23:16 23 minutes, 16 seconds be volume lead and how much is price driven and going forward on a sustainable basis is this kind of growth 23:22 23 minutes, 22 seconds momentum sustainable uh into FI27 or how should we look at growth over year and 23:30 23 minutes, 30 seconds uh thirdly uh with you know the technology transfer from Sheffield refractory 23:36 23 minutes, 36 seconds uh expected you know by mah March 2026 what is the kind of incremental revenue more margin benefit that we are 23:44 23 minutes, 44 seconds expecting uh after you know the localization happens because we see other players also doing you know quite well in the iron making. So what are our 23:53 23 minutes, 53 seconds our plans in in this uh space? So yeah that was my three questions. 24:04 24 minutes, 4 seconds Okay see um I would uh leave that USA part to our managing director. The other 24:12 24 minutes, 12 seconds two let me respond. One is that TRM model you know uh in coming days this 24:19 24 minutes, 19 seconds TRM model is continuously growing and um roughly uh I would say it is around uh 24:27 24 minutes, 27 seconds 35 to 40%age of our uh total monthly revenue comes through this TR model which is continuously expected to grow. 24:41 24 minutes, 41 seconds Okay. And uh uh so this is uh uh definitely uh you know an area where uh 24:51 24 minutes, 51 seconds you know we will be concentrating more and that's also going to be a differentiating factor for IFGL from the 24:59 24 minutes, 59 seconds crowd of many refractory uh manufacturer and suppliers in the industry. So we will be one among top three and in this 25:08 25 minutes, 8 seconds place because uh the profitability range I mean we uh is also uh better than the 25:17 25 minutes, 17 seconds direct material because the efficiency of our own application at the plant has a direct impact uh you know impact on 25:24 25 minutes, 24 seconds our margin and uh iron making question. I would say 25:31 25 minutes, 31 seconds that yes iron making is definitely uh is a new area for us as I said uh there are 25:40 25 minutes, 40 seconds max let's say leading there are only two players who are very actively involved 25:46 25 minutes, 46 seconds into this space and with a growing upcoming uh you know steel uh iron and 25:54 25 minutes, 54 seconds steel making expansion they want an alternate additional vendor and there are a very welcoming discussion uh with 26:03 26 minutes, 3 seconds uh two three uh important uh you know leading steel producers with us already. 26:11 26 minutes, 11 seconds Competition is going to be a common element in every space wherever you go. 26:15 26 minutes, 15 seconds So there are we can't expect any space where free from competition but it all depends on how are we executing and here 26:23 26 minutes, 23 seconds the major strength comes from a wellproven technology provided by our uh shapefield refractories who are doing 26:32 26 minutes, 32 seconds exceptionally well in this space. So this equips us uh to make and naturally once when you get into this field and 26:41 26 minutes, 41 seconds establish yourself for uh sustainable continuous volume then we will be able to give you a kind of a margin levels 26:50 26 minutes, 50 seconds and all but we are bullish and we are very very optimistic in this on USA part 26:58 26 minutes, 58 seconds 37% and other thing I would request our MD to respond. 27:03 27 minutes, 3 seconds Yeah, I mean obviously um you know 37% is quite a a nice jump for the the USA 27:11 27 minutes, 11 seconds businesses and um uh I can say that uh I mean this was over um quite a lackluster 27:18 27 minutes, 18 seconds year last year. Um the American market uh this year is uh is very robust and um 27:26 27 minutes, 26 seconds you know it's going to be growing and um especially in the customers that we're involved in um we feel that um you know 27:35 27 minutes, 35 seconds looking at the next year um we feel that uh you know we're going to have a really good growth year again uh it won't be at 27:44 27 minutes, 44 seconds 37% level but it will be um you know a very good level of growth for the United 27:51 27 minutes, 51 seconds States and also at the same time uh we expect to uh uh continue the growth in and profitability. 28:02 28 minutes, 2 seconds Sure. Sure. Thank you. Thank you so much sir. Thank you for the detailed answer and wishing you all the best. That's it from Thank you. 28:10 28 minutes, 10 seconds Thank you. A reminder to all the participants if you wish to ask a question you may press star and one at this time. 28:20 28 minutes, 20 seconds Our next question comes from the line of Mani Sha from EVNA Advisor. Please go ahead. 28:30 28 minutes, 30 seconds Hi sir, am I audible? Yes. Yes, very much. 28:36 28 minutes, 36 seconds Yeah. So sir my question is that um as new capacities in Odisha and good ramp 28:43 28 minutes, 43 seconds uh what effect on margin profile should we expect from these investments? 28:50 28 minutes, 50 seconds Yeah, I think uh we have indicated in the earlier definitely at any point of 28:58 28 minutes, 58 seconds time it will never come down from twodigit margin that is absolutely you know assured because of these uh 29:06 29 minutes, 6 seconds products uh nature and uh also at present available competition in the 29:12 29 minutes, 12 seconds market it's very less. So definitely it this is going to be a a very high 29:20 29 minutes, 20 seconds rewarding project and u that is how we are putting all our effort in making it putting it on a fast track. 29:30 29 minutes, 30 seconds Okay. So I had one more question regarding the margins. So uh despite healthy revenue growth Aida margins were 29:38 29 minutes, 38 seconds below expectations. What would you consider a normalized sustainable aida margin range for the standalone India business and for the consulted entity? 29:49 29 minutes, 49 seconds Double digit is definitely ensured that's what we always do and maintain and uh uh that's our uh you know thing. 29:58 29 minutes, 58 seconds Yeah. I mean uh I mean plus minus.5 point here and there but it will never come down from double digit. 30:07 30 minutes, 7 seconds So sir double digit in like what range would you yeah stand alone we have already said 30:14 30 minutes, 14 seconds 12% minimum at that range okay sir and can it go as high as 16 30:20 30 minutes, 20 seconds also or is it like the same range that we cannot actually you know suggest 30:27 30 minutes, 27 seconds at this but the minimum level what I mentioned will be there sure sure okay thank you for answering 30:35 30 minutes, 35 seconds my question sir Thank you. Our next question comes from the line of Sahil Sangri from Monak 30:43 30 minutes, 43 seconds Network Capital Limited. Please go ahead. 30:51 30 minutes, 51 seconds Sah kindly unmute your line and go ahead with your question. 30:55 30 minutes, 55 seconds Yeah. Yeah. My first question is uh the employee cost uh as a percent of revenue where should it stabilize now because there is a lot of volatality in that 31:04 31 minutes, 4 seconds number. So for our modeling purposes and for our assumptions where should we look 31:10 31 minutes, 10 seconds u at that number would it be fair to say that it would be around 10% or uh it 31:17 31 minutes, 17 seconds would be 12 13% of the top line can you help us? 31:23 31 minutes, 23 seconds Yeah, it will be around 10% only for know coming uh year because as we know that we have uh uh 31:35 31 minutes, 35 seconds uh as we have you know these projects which are already on and the team is working and u this will be around that percentage 31:44 31 minutes, 44 seconds 10 around so as we have mentioned also that you know 31:51 31 minutes, 51 seconds there are some uh non-curing cost uh employee cost included in this quarter. 31:57 31 minutes, 57 seconds So we uh do foresee a reduction in employee cost in the next quarter. 32:05 32 minutes, 5 seconds Right. So but but uh the expenses that we had this quarter uh do you expect this kind of thing to be uh happening once a year uh every year or how? 32:17 32 minutes, 17 seconds No no no it's it's noning. 32:21 32 minutes, 21 seconds Okay. Okay. And uh with respect to quarter uh on the console side it's fair to assume that your employee cost will 32:29 32 minutes, 29 seconds be what in the range of 17 to 18% or would it be similar range similar range what we have but we do not 32:37 32 minutes, 37 seconds foresee further increase from this level for sure right right now secondly uh on the on 32:45 32 minutes, 45 seconds the margin sir I think uh we had a guidance of uh working around 12% uh on on the console side of the AIDA 32:53 32 minutes, 53 seconds margins. I think this year we are very much far away from that number in the 9 months that we have delivered. 33:01 33 minutes, 1 second So, so I mean can we get back to that number in next year or FI28? 33:09 33 minutes, 9 seconds What is what would be your guidance? 33:11 33 minutes, 11 seconds What would be your understanding on that? See uh as you know that because of UK operation our margin are getting eroded. 33:21 33 minutes, 21 seconds Okay. we our US operation has you know come back and uh is performing well. So our US operation with respect to revenue 33:30 33 minutes, 30 seconds is doing good and as we informed that you know we are working on the cost optimization. So we are hopeful that uh 33:37 33 minutes, 37 seconds in maybe in couple of quarter we'll be able to reduce our losses or naked zero 33:44 33 minutes, 44 seconds uh for monocon and then we can expect then growth in a beta margin for consolidation and what what will be these measures 33:53 33 minutes, 53 seconds that you are taking up in the on the monocon side which will help us uh turn positive on the margins. Oh, there there 34:00 34 minutes are different operational efficiency, cost cutting, everything is there. We as we have worked upon sales, we have regained sales part of the sales, we 34:09 34 minutes, 9 seconds work on uh the cost efficiency model also to get back on track and obviously market has to support us. 34:20 34 minutes, 20 seconds Right. Right. Right. Got it. And um lastly, I wanted to know your capeex number. I mean how much will you spend 34:28 34 minutes, 28 seconds on uh the capeex side this year and next year? 34:32 34 minutes, 32 seconds So see size I think we have already announced that we have two major capeex 34:39 34 minutes, 39 seconds uh in the pipeline. one is for the kuda project which which will be around uh uh 325 cr approximately and uh which will 34:48 34 minutes, 48 seconds be 100% IGL project and second is uh your uh JV project which will be 51% IGL 34:57 34 minutes, 57 seconds and 49% Marvel which will cost around 300 cr so this we need to bifurcate in two years time 35:06 35 minutes, 6 seconds so this year and next year you'll complete both these uh spendings uh this is exactly 28 ka fi 28 kuda we are 35:14 35 minutes, 14 seconds targeting to close and 29 is the target for mahi again that doesn't answer my question I'm asking you this year how much will 35:22 35 minutes, 22 seconds be the so that will be dulcated let's say 350 cr will be bifulcated into two years uh 35:28 35 minutes, 28 seconds maybe 60% uh 60 60 to 70% this year and balance next year and marvel uh will 35:36 35 minutes, 36 seconds start uh after this uh uh regulatory approval We have already acquired land that that is already spent. So we need 35:45 35 minutes, 45 seconds to spend just uh uh 50% of uh 30% of investment because it is bifurcated into 70 30% debt that equity uh 50/50 equity. 35:58 35 minutes, 58 seconds Hope you got it. 35:58 35 minutes, 58 seconds So that yeah so that first year will be that spending will start from next year right f27. Yeah. Yeah. 36:05 36 minutes, 5 seconds Okay. Okay. Thank you. Thank you. That's all for me. 36:10 36 minutes, 10 seconds Thank you ladies and gentlemen. If you wish to ask a question, you may press star and one at this time. 36:18 36 minutes, 18 seconds Our next question comes from the line of Rajesh Majunar from 361 Capital. Please go ahead. 36:26 36 minutes, 26 seconds Yeah sir. Uh I had a question on the standalone business. Why are our margins so sharply down despite peers reporting 36:34 36 minutes, 34 seconds a better performance this quarter on account of slightly better pricing and slight moderation in RM costs? What has happened this quarter in our product mix 36:42 36 minutes, 42 seconds that the margins are so sharply down when it should have been a better quarter compared to the earlier quarter for domestic business? 36:52 36 minutes, 52 seconds I think we have uh spoke about that uh uh there are three things what has impacted our margin. One is the product 37:00 37 minutes mix. Second is the increased employee cost and third one is the operational overhead what we have increased in this 37:07 37 minutes, 7 seconds quarter. Otherwise if we see a YTD level numbers 9 month numbers our standalone 37:14 37 minutes, 14 seconds AITA margin is 11% uh maybe in line with our peers excluding the employee cost the gross 37:22 37 minutes, 22 seconds margins also down very sharply so the product mix has diterated in favor of I mean uh like really what has happened 37:29 37 minutes, 29 seconds because you have PRM as well what has happened to warrant such a sharp such a sharp drop in the gross margins 37:36 37 minutes, 36 seconds you see every quarter we may not have the same uh product mix. It may vary from quarter to quarter. We are hopeful 37:43 37 minutes, 43 seconds that next quarter we'll have a better product mix and uh margin levels. 37:49 37 minutes, 49 seconds If I talk to you about pricing, what is the pricing change you've seen this quarter? Say uh on a quarteronquarter basis in terms of the pricing. 37:56 37 minutes, 56 seconds There's no major price change from last quarter to this quarter. 38:02 38 minutes, 2 seconds Okay. And sir, last question is on the TRM zoo. We we also see some performance incentives etc. So that uh is there any 38:11 38 minutes, 11 seconds chance of us getting some performance incentives down the line from any of the TRM contract going forward or uh largely it's going to be like this only? 38:21 38 minutes, 21 seconds I think performance bonus and penalty is part of a contract and uh that is a recurring nature sometime plus sometime 38:27 38 minutes, 27 seconds minus so it will not have a very big impact unless there is a specific big uh kitted item in the quarter. 38:38 38 minutes, 38 seconds Okay. So, thank you. 38:48 38 minutes, 48 seconds Thank you. Our next question comes from the line of Hesh Kar from Green Portfolio. Please go ahead. 38:57 38 minutes, 57 seconds Hello. Uh, hi sir, thank you for taking my question. Uh, my first question is regarding the technology transfer. So 39:04 39 minutes, 4 seconds earlier the management had given a guidance of technology transfer to be completed by December but now we have moved this to March. So what is the 39:13 39 minutes, 13 seconds reason behind this delay and uh whether like can we expect a further delay or the deploy transfer is to be finalized now? 39:27 39 minutes, 27 seconds No, I mean we are expecting uh uh you know because the delay was due to some of key uh you know the technology is 39:37 39 minutes, 37 seconds combination of both material as well as uh application installation uh you know 39:43 39 minutes, 43 seconds combined and there was some u delay on a key component uh supply which has 39:51 39 minutes, 51 seconds affected uh fabrication of that particular ular unit. So we are now expecting uh this to be shipped uh in 39:59 39 minutes, 59 seconds end March April. So we will get it uh Q1 end of Q1 next year. So from there onwards our journey starts. 40:08 40 minutes, 8 seconds Okay, that's very helpful sir. And uh the second question is regarding the capacity utilization. So uh if we specifically talk about the two Pushaka 40:17 40 minutes, 17 seconds plants that we commercialized in FY25, what is their current capacity utilization? 40:23 40 minutes, 23 seconds No, but there various different lines and different lines are varying and there are two lines which we just recently only started. So right now uh 40:33 40 minutes, 33 seconds uh you know putting up a number like capacity placation for that 2 year old plant will be misleading. So we are 40:40 40 minutes, 40 seconds making a good progress that much I can say. 40:44 40 minutes, 44 seconds Okay. And is there any guidance of incremental revenue to come from those plants going forward? 40:51 40 minutes, 51 seconds No, no. I mean that is included in our entire growth and I think specifically we don't have uh number to you know tell in plan wise. 41:03 41 minutes, 3 seconds Okay. Okay. And uh just one thing what is your guidance regarding FI27 growth numbers? 41:11 41 minutes, 11 seconds 27 I think will come uh next quarter with our guidance. This year will let us close this year first. Yes. 41:20 41 minutes, 20 seconds Yes. And and uh just uh one last thing that in the investor presentation you have mentioned some uh uh regulatory 41:30 41 minutes, 30 seconds delays coming in the GV. So can you please elaborate there a little? 41:37 41 minutes, 37 seconds No see that's like actually uh specific to this particular case is PN3 that 41:44 41 minutes, 44 seconds press note number three which suggest you know the one layer additional uh you know approval required when we bring 41:54 41 minutes, 54 seconds technology from the countries you know sharing the border with our nation. So that is the thing which is now coming. 42:02 42 minutes, 2 seconds But now as I was mentioning in my opening u uh remark that very positive 42:09 42 minutes, 9 seconds things which are in public domain now that you know direct uh flights which was not there for almost 3 4 years. Now 42:18 42 minutes, 18 seconds it started and also now a special manufacturing and technology transfer related uh business visa which is also 42:27 42 minutes, 27 seconds uh already approved for uh this uh what do you call u uh the neighboring country what we are discussing. So all positive 42:36 42 minutes, 36 seconds signals are coming and um so those are of the things. Okay. Thank you. Thank you sir. 42:44 42 minutes, 44 seconds Thank you. 42:46 42 minutes, 46 seconds Thank you. Our next question comes from the line of Pravin Jaraman from Aventus Park Institutional Equities. Please go ahead. 42:57 42 minutes, 57 seconds Good evening sir. Thanks for the opportunity. Hope I'm audible. Yes. Yes. 43:05 43 minutes, 5 seconds Uh my question is in the line of Dolomite Rep. In the earlier conourse uh we mentioned that the size of the market 43:12 43 minutes, 12 seconds will not be only pertaining to the uh stainless steel as yen market and we could uh take global average or global 43:20 43 minutes, 20 seconds usage of dometric factory and apply that in India as a market size. Uh sir here 43:27 43 minutes, 27 seconds my doubt is if if uh even in normal steel case if you're using dolomite factory what would be the case of switching here it will be on a quality basis or it could be on a cost basis. 43:39 43 minutes, 39 seconds It is primarily on quality basis because of the material uh you know it contains it helps making cleaner steel uh 43:48 43 minutes, 48 seconds compared to the conventional things. So it's basically on quality and not the cost front. It is a special reporter. 43:56 43 minutes, 56 seconds Yeah. Yeah. 43:58 43 minutes, 58 seconds Right. And uh uh how far the adoption rate that we are expecting internally sir? 44:06 44 minutes, 6 seconds You see when with the kind of growth expected in stainless steel alone is going to give full market potential for our product. 44:18 44 minutes, 18 seconds What I mentioned was that I mean the you know it will take some two to three years for normal steals to adapt for a 44:28 44 minutes, 28 seconds quality based uh quality needed you know adoption of this grade that will come which is for further our expansion of 44:36 44 minutes, 36 seconds the project. So the project at this stage has much more uh you know market only in stainless steel growth alone. 44:45 44 minutes, 45 seconds That's what we mentioned. It will take long time and that has got no impact on our projected uh you know uh supply from 44:54 44 minutes, 54 seconds this uh project that is for further expansion of this project. 44:59 44 minutes, 59 seconds Okay sir. So the uh steel plate adoption is for further expansion of dometra. 45:04 45 minutes, 4 seconds Yeah yeah yeah. Thank you. Sir if uh if that's the case on existing uh stainless uh projects that which is which which we 45:11 45 minutes, 11 seconds are going to serve whether it is going to come from growth of stainless products uh from the base of from current base or it will be more of an 45:19 45 minutes, 19 seconds input substitution both both because uh we are envisaging 6 million ton to come out in another uh 45:28 45 minutes, 28 seconds one and a half two years from 4 million t right now and also import substitution both will happen it's not only single 45:36 45 minutes, 36 seconds element both elements are there and what would be the thumb rules here sir uh uh refractory usage per ton of uh 45:44 45 minutes, 44 seconds stainless steel no no it depends on because of now you know 40 to 60 t aods to 120 aods it will 45:53 45 minutes, 53 seconds vary and uh I mean uh so we can't put a one number because it will also be used in the lab carrying 46:02 46 minutes, 2 seconds the same thing so a single number you know uh right now I'm not I cannot give you a single number. 46:12 46 minutes, 12 seconds Okay sir. Okay sir. Uh a question uh other than this uh in electric arc furnace whether there would be any uh 46:20 46 minutes, 20 seconds increase in refractory usage compared to glass furnace and if yes uh could you quant quantify the same or 46:27 46 minutes, 27 seconds definitely electric furnace will consume uh the specific consumption of refractory in electric furnace route is 46:35 46 minutes, 35 seconds going to be slightly higher than the conventional route overall value chain from blast furnace to converter. 46:44 46 minutes, 44 seconds uh can you give very broad numbers or a percentage to conventional method again because when you say electric 46:52 46 minutes, 52 seconds furnace it's a family energy optimization burners and then electric arc burners and then twin heart electric 47:00 47 minutes many things are there so but all put together will be two I could say that if absolute I will not be able to but at 47:07 47 minutes, 7 seconds least two and a half to 3% will be higher than the normal conventional group. 47:14 47 minutes, 14 seconds Great sir. Thanks. Thanks for taking my question. That's it from my side. Yeah. Thank you. 47:22 47 minutes, 22 seconds Our next question comes from the line of Ragini, an individual investor. Please go ahead. 47:30 47 minutes, 30 seconds Good evening. My first question is on employee cost. How much increase is one time and what is the real reason for incremental fix cost? 47:42 47 minutes, 42 seconds I think uh racial question we have identified uh this that uh this uh has 47:49 47 minutes, 49 seconds some portion of uh non-recurring cost in the quarter which is nonrecurring and non-reitive and it will not come in 47:56 47 minutes, 56 seconds quarter 4 or uh in the next year and we uh expect to maintain uh 10% uh 48:05 48 minutes, 5 seconds employee cost uh as a percentage of sale as of Uh can you tell me the quantum? 48:15 48 minutes, 15 seconds That is not to be disclosed at the point. 48:19 48 minutes, 19 seconds Okay. So my next question is as inating in INR we must have got FX positive. So 48:26 48 minutes, 26 seconds how much is the beta one time effect positive? Sorry come again. 48:33 48 minutes, 33 seconds um as we consolidating in INR we must have got FX positive. So how much beta is one time due to this FX positive? 48:43 48 minutes, 43 seconds Uh uh I don't think I have that number readily available in front of me. We get back to you on this to our uh investor. 48:54 48 minutes, 54 seconds Can you give me an approximate number? 48:57 48 minutes, 57 seconds No, I would not like to give an approximate. We'll get back to you on this for sure. You can connect the SGA for this. We'll get back. 49:06 49 minutes, 6 seconds Sure. Thank you. Thank you. 49:14 49 minutes, 14 seconds Participants who wish to ask a question may press star and one at this time. 49:21 49 minutes, 21 seconds Our next question comes from the line of sake Kapoor from Kapoor and Company. Please go ahead. 49:28 49 minutes, 28 seconds Yes. Namaskar sir. Hope I'm audible. Yes. Yes. 49:33 49 minutes, 33 seconds Yes. Firstly, uh uh earlier last year and in fact for some part of the first second quarter we were uh we were 49:40 49 minutes, 40 seconds constrained in margins because of the RN prices especially the almonia prices which the management worked out that uh 49:48 49 minutes, 48 seconds post two quarters uh the revision in cost that will be passed on. So now taking into consideration those prices 49:55 49 minutes, 55 seconds being flattened uh why have the margins not improved uh by uh by by any material 50:03 50 minutes, 3 seconds means and secondly uh uh in terms of the product differentiation from the new facility at Kuda what would be the 50:11 50 minutes, 11 seconds incremental margins that we are expecting? You did mentioned earlier but I missed your in the opening commentary. 50:19 50 minutes, 19 seconds uh on the first part you know the uh price increasing trend uh is not there it has flattened but it has never came 50:28 50 minutes, 28 seconds down to the original level. So that that cost pressure it is because of increasing card pressure instead of 50:36 50 minutes, 36 seconds increasing cost pressure it has you know come to a place where increased price holding is there and it's there is no 50:42 50 minutes, 42 seconds much uh you know we cannot compare aluminina as a whole because there are some special aluminina with specific 50:51 50 minutes, 51 seconds you know characteristics where the prices have not come down. There are which are commercially used high you 50:58 50 minutes, 58 seconds know aluminina or other category which are few used in quantum of things for brick and other making then there was a 51:07 51 minutes, 7 seconds reduction and but in our case there is no much impact but yes increasing has stopped flat so but whereas other costs 51:17 51 minutes, 17 seconds are increasing so we are now we'll have to calculate even the new labor code and all what it kind of impact is going to 51:23 51 minutes, 23 seconds give so that sat alone otherwise uh the uh there was no big relief on that only 51:32 51 minutes, 32 seconds the relief came from flat price not uh you know any reduction and then the 51:39 51 minutes, 39 seconds incremental as I said incremental uh uh you know 51:46 51 minutes, 46 seconds yeah so like unit incremental from whatever down it will 51:55 51 minutes, 55 seconds be around if not more minimum 8 to 10%. 52:00 52 minutes 8 to 10% more than what our current product that is 12. 52:04 52 minutes, 4 seconds Yeah. Yeah. Standalone kuda standalone kuda basis. Correct. 52:09 52 minutes, 9 seconds Okay. No sir what I'm trying stand 8% higher than what we are doing currently in the standalone or will be at 8%. for 52:18 52 minutes, 18 seconds the for the revenue generated in Kuda we are talking about that you know whatever revenue but particularly if you 52:25 52 minutes, 25 seconds calculate a uh specific kura based you know aita margin level that will be 52:34 52 minutes, 34 seconds 8 to 9% higher than the average standalone Indian uh right now you know whatever we have 11% okay and what should be the asset 52:42 52 minutes, 42 seconds turnover from the unit sir when when we'll be working at so that's again a mix Perfectly know we need to come to that actual mix and that 52:50 52 minutes, 50 seconds percentage effect on that. We will come back once when we progress further. 52:56 52 minutes, 56 seconds Okay. Earlier Amit G mentioned that employee cost for the standalone unit will be 10% of the revenue. So uh if we 53:04 53 minutes, 4 seconds take this quarter number at 270 K the normal rate would have been 27 cr wherein we we had employee cost of 35. 53:11 53 minutes, 11 seconds So this will get evened out go uh for for the next quarter. So there's one of uh in the employee benefit expenses for this quarter. 53:19 53 minutes, 19 seconds Yes. Yes. Yes. 53:21 53 minutes, 21 seconds Okay. And for uh for these consolidation it will remain 12%. Yes. It remains at the same level. 53:28 53 minutes, 28 seconds Obviously the impact of time will be passed on there. 53:35 53 minutes, 35 seconds Right sir. And and lastly suggest to understand uh the the the cost structure uh for for the sector as a whole and our 53:44 53 minutes, 44 seconds company. Uh the the the bottom line is not commensurate to the to the type of effort that that we are doing in terms 53:52 53 minutes, 52 seconds of the capex uh the AITA number and then the final PBT. There is a very strong uh decline uh declining trend there. the 54:01 54 minutes, 1 second numbers do not suffice to uh to to uh commensate for shareholders value. So 54:07 54 minutes, 7 seconds where do we stand today in terms of that value creation exercise which uh I think so earlier uh our CEO has mentioned we 54:16 54 minutes, 16 seconds did came out with a bonus issue that is also counterproductive in terms of the tax deincentivization that we have currently for bonus. So uh what the 54:25 54 minutes, 25 seconds thought process uh for creating the value for your shareholders that has that has not happened sir. 54:32 54 minutes, 32 seconds No no you see all what what I mentioned is the new technology and the better position and all these are all seeds we 54:38 54 minutes, 38 seconds have put seedings now let's say when the the next contracts which are going to be renewed down the line of May June July 54:47 54 minutes, 47 seconds so that time our business share will come these are all wherever we have put our new everything has been uh you know encouraging result has come and 54:56 54 minutes, 56 seconds customers have assured us so so I said it is seeding so the coming quarter it's going to yield 55:03 55 minutes, 3 seconds Also I asked if I could add um obviously the as Amit mentioned earlier the uh the 55:11 55 minutes, 11 seconds UK business um has been under considerable pressure for uh you know 55:17 55 minutes, 17 seconds over a year. Um you know we implemented many plans there for uh new product developments and uh many of these uh new 55:26 55 minutes, 26 seconds products have already entered the market unfortunately because of the market conditions in Europe and and many of 55:33 55 minutes, 33 seconds their uh u you know harm market uh that they're involved in have 55:43 55 minutes, 43 seconds been very slow on the uptake of these new products much slower than we expected. 55:48 55 minutes, 48 seconds Um but we feel that um we're on the track. 55:53 55 minutes, 53 seconds That along with some changes that we will make in terms of the structure and approach will definitely enable us to to increase our profitability. 56:04 56 minutes, 4 seconds Um that is a drag on the company. The profitability of the UK company as a drag the company. So at the moment um 56:12 56 minutes, 12 seconds and over the coming quarters we will see improvement in that. 56:18 56 minutes, 18 seconds Right sir. So just to conclude so this we can see that worst is behind uh us in terms of the inflationary trend then the 56:26 56 minutes, 26 seconds the worst of the product makes and the employee cost factors all factors that have dented the profit. Are we are these 56:34 56 minutes, 34 seconds things of past or we can face similar headwinds in the quarter ahead also? 56:43 56 minutes, 43 seconds If you are not sorry to interrupt but your voice is breaking sir. 56:50 56 minutes, 50 seconds Oh my voice is breaking. Oh you hear? No it's still cracking. 56:58 56 minutes, 58 seconds Ah no. 57:01 57 minutes, 1 second Um is this okay? 57:05 57 minutes, 5 seconds Yes this is sorry happened there. Um yeah as as Amit 57:12 57 minutes, 12 seconds and Aras mentioned earlier I mean and and the Indian side for sure um we we feel very strong that applicants moving 57:21 57 minutes, 21 seconds forward um on the overseas side um as 57:27 57 minutes, 27 seconds Amit mentioned earlier uh the USA is uh uh very strong and we we see continuing 57:35 57 minutes, 35 seconds in the future. Uh, Offman Ceramics is uh uh we feel the bottom is is is moving 57:42 57 minutes, 42 seconds forward and moving up. Um, Sheffield refractories is quite strong. The main area only in the company that we need to 57:50 57 minutes, 50 seconds work on and we are working on very hard is the monocon uh business in the UK and 57:58 57 minutes, 58 seconds uh we feel sure that um over the coming um the coming quarters uh we will start 58:07 58 minutes, 7 seconds in those improvements in those will have a massive in the company because that is the the at the moment. 58:19 58 minutes, 19 seconds So you were not completely audible. If Ashu sir could supplement what what sir was John sir was trying to 58:27 58 minutes, 27 seconds I I'll just update what he was saying that you know the monocon UK business is the only drawback what we have is 58:34 58 minutes, 34 seconds dragging us down and we need to work on that and we are already working on that to overcome the losses. uh I think if we 58:42 58 minutes, 42 seconds overcome that the things will be online aligned that's where he wanted to convey this 58:50 58 minutes, 50 seconds okay that is where where the European operations are so we are connecting with with those correct 58:58 58 minutes, 58 seconds okay sir hope for better time sir thank you and all the best to the team thank you so much 59:05 59 minutes, 5 seconds thank you our next question comes from the line of Sanjay Nandi from BT Capital capital please go ahead. 59:13 59 minutes, 13 seconds Yeah, thank you for the opportunity sir. 59:15 59 minutes, 15 seconds Uh sir, what percentage of our total portfolio is being contributed by control structures on a console basis? 59:31 59 minutes, 31 seconds I think we do not uh I think like PS we do not share or uh give the break up of 59:39 59 minutes, 39 seconds the uh revenue product wise no just wanted to only flow control 59:46 59 minutes, 46 seconds that's it sir so I don't want the remaining kind of product share if you can kind of on that sir 59:55 59 minutes, 55 seconds I don't know if you would Yeah, I mean it's it's close to let's say or uh low control per say will be around 50 55%. 1:00:05 1 hour, 5 seconds Got it sir. Got it sir. Thank you for sure. Thank you. Thank you. 1:00:11 1 hour, 11 seconds Thank you ladies and gentlemen. We take that as the last question for today. I would now like to hand the conference over to Mr. 1:00:19 1 hour, 19 seconds Sahil Sangvi for closing comments. Over to you Mr. Sangri. 1:00:24 1 hour, 24 seconds Yeah, just want to thank the management for elaborately answering all the questions and also thank you to all the participants for participating in the 1:00:31 1 hour, 31 seconds call. Um the managers would you like to give any closing comments please? 1:00:36 1 hour, 36 seconds Yeah I mean we hope you have been able to answer most of your queries. We look forward to your participation in the next call. For any queries you may 1:00:44 1 hour, 44 seconds contact SGAA our investor relations advisor. Thank you. Thank you very much. 1:00:52 1 hour, 52 seconds Thank you. 1:00:54 1 hour, 54 seconds On behalf of Manav Networks Capital Limited, that concludes this conference. 1:00:58 1 hour, 58 seconds Thank you for joining and you may now disconnect your lines. Thank you.