Kirloskar Ferrous Industries Limited — Q4 FY26

Kirloskar Ferrous Industries Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=SDGieZ_yu8g Published: 5 days ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to the Kiluskar Feros Industries Limited Q4 FY26 earnings call hosted by 0:12 12 seconds Antic Stock Broking Limited. As a reminder, all participant lines will be in the listenonly mode and there will be 0:19 19 seconds an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the 0:26 26 seconds conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. I now 0:35 35 seconds hand the conference over to Mr. Bala Aarals. Thank you and over to you sir. 0:41 41 seconds Yeah, thank you Gitesh and good afternoon everyone. A warm welcome to the fourth quarter and FI26 earnings 0:48 48 seconds call of Kilosca Ferris. Uh we have the senior management today uh represented by Mr. RBI Gumaste the managing director and Mr. RST the ED finance and the CFO. 1:00 1 minute So I would now hand over the call to Mr. 1:02 1 minute, 2 seconds Gumaste for his opening remarks. Over to you sir. 1:07 1 minute, 7 seconds Uh thank you Palav. Uh uh let me take the opportunity to welcome uh all the uh 1:15 1 minute, 15 seconds uh investors on the call. Uh welcome to uh Kiloskar Ferris Industries uh quarter 1:23 1 minute, 23 seconds 4 year end uh earnings call and uh let me start with the key highlights or the 1:31 1 minute, 31 seconds important uh uh figures uh in terms of production and in terms of sales. uh the 1:38 1 minute, 38 seconds Cotto's uh uh figure in uh uh production quantity was 1 lakh 58,152 1:46 1 minute, 46 seconds metric ton and uh compared to uh quarter force uh last year 1 lak 62,286 1:57 1 minute, 57 seconds uh metric t and uh the production is lower by 3% compared 2:05 2 minutes, 5 seconds to the last year's And casting production is 36,596 2:12 2 minutes, 12 seconds metric t against 32,000 t 32474 ton which is 30 13% higher than the last 2:21 2 minutes, 21 seconds year. uh in terms of the tube production 56,119 ton against 52,860 2:31 2 minutes, 31 seconds ton last year which is a growth of 6% uh uh year on year steel production was 2:39 2 minutes, 39 seconds 58,119 metric ton against 64,443 2:48 2 minutes, 48 seconds ton which is uh almost 10% lower in uh last year. Uh coming to 2:56 2 minutes, 56 seconds uh total year production, last year's uh year uh uh 2526 we produced 6 lakh 3:07 3 minutes, 7 seconds 23,939 metric ton against last year's uh 6 lakh 31,13. 3:17 3 minutes, 17 seconds uh the major drop uh to the extent of uh 68,000 was because of stoppage of uh hir 3:26 3 minutes, 26 seconds uh uh blast furnace for almost 3 and a half months because of the uh market conditions not being conducive uh 3:35 3 minutes, 35 seconds whereas uh productions from MBF 1 2 and three MBF 1 and two have gone well uh 3:43 3 minutes, 43 seconds could have been higher than last year uh in terms of the output very close to uh 3:49 3 minutes, 49 seconds 7 lakh metric t uh if the market condition in terms of realization in 3:55 3 minutes, 55 seconds figure would have been uh better uh casting uh in the year we produced 1 4:03 4 minutes, 3 seconds lakh 48,564 metric t against 1 lakh 39,000 which is uh increase of about 7%. 4:13 4 minutes, 13 seconds uh this production is uh after uh uh giving some of the castings to the 4:19 4 minutes, 19 seconds Oliver foundry in addition to this tonnage we also produce 17,500 4:26 4 minutes, 26 seconds metric t of castings in uh Rajpura Oliver uh uh so if we take standalone 4:34 4 minutes, 34 seconds kilos feras uh it is 7% growth in the production whereas uh if we take uh um 4:42 4 minutes, 42 seconds oliver then it is 16% uh uh growth in the production 4:48 4 minutes, 48 seconds uh tube production 40 year is 26,000 4:54 4 minutes, 54 seconds uh 914 metric t against uh last year's 1999,443 5:02 5 minutes, 2 seconds metric t uh steel production remains at 2 lak 40,000 against last year's 2 42,000 5:11 5 minutes, 11 seconds As we had to take uh a major stoppage for uh uh couple of month uh couple of 5:18 5 minutes, 18 seconds uh c uh fortnights two times in the year to uh erection of uh fume extraction 5:28 5 minutes, 28 seconds system primary and secondary to improve the environmental aspects within the 5:34 5 minutes, 34 seconds steel plant. Uh coming to the uh sales quantities uh uh sales figure in sales 5:42 5 minutes, 42 seconds during the quarter was 1 lakh uh 27,600 metric ton against uh last year 1 lakh 5:49 5 minutes, 49 seconds 35,000. So it's almost 6% lower than uh last year. Casting uh sales was 34,980 5:58 5 minutes, 58 seconds metric t against last year's 32,27 metric t 9% more. Uh tube sales was 6:06 6 minutes, 6 seconds 51,16 metric t against 51,500. 6:12 6 minutes, 12 seconds It's more flattish. and uh uh steel sales was 24,812 6:20 6 minutes, 20 seconds against 20,700 which is an increase of 20%. 6:25 6 minutes, 25 seconds uh in terms of uh value terms uh I'll go to the total sales value is uh 1781 6:31 6 minutes, 31 seconds crores you have all the details and uh uh overall for the years uh when we look 6:38 6 minutes, 38 seconds at we mainly uh had to uh face the uh sales realization drop sales realization 6:48 6 minutes, 48 seconds in case of pigaran was 6% uh in case of casting things it was uh less than 1%. 6:58 6 minutes, 58 seconds Uh in case of uh uh tubes overall price sales realization dropped almost by 10%. 7:08 7 minutes, 8 seconds So overall growth uh if we look at on the top line uh let's see what we have achieved 3% including Oliver if I see it's about 5.1%. 7:19 7 minutes, 19 seconds It is after uh accounting for the drop in the sales realizations because of the commodity 7:26 7 minutes, 26 seconds prices being low. Uh I think it was substantial. 7:31 7 minutes, 31 seconds Uh except that uh quarter four uh the prices picked up and uh uh also little 7:41 7 minutes, 41 seconds bit on the steel prices. Uh coming to the uh the quarter and the year end, we 7:48 7 minutes, 48 seconds ended up with uh 6,861 uh crores of uh sales against uh 6,628 7:59 7 minutes, 59 seconds last year and uh uh 8:06 8 minutes, 6 seconds profit before tax uh is uh four 514.43 43 crores against uh uh 532 crores 8:17 8 minutes, 17 seconds before exceptional item against 432 crores. Uh improvement of about 100 crores on the PBT and uh after the 8:26 8 minutes, 26 seconds exceptional item it is 514 against 5432. 8:32 8 minutes, 32 seconds Uh overall we have been able to uh increase the volume uh production and sales in 8:39 8 minutes, 39 seconds case of uh castings. Casting is including oliver about 23,000 uh uh tons which is quite substantial 8:49 8 minutes, 49 seconds which happens to be 16% uh of the total uh sales. 8:56 8 minutes, 56 seconds uh with respect to uh we are working for the merger of Oliver into Gillescar Ferrris Industries. We expect it to we 9:05 9 minutes, 5 seconds look forward to close it in next uh couple of months uh uh so that uh we can 9:11 9 minutes, 11 seconds have the uh the benefit of uh merch uh uh for the year 2526 itself. Uh with 9:20 9 minutes, 20 seconds this uh brief update uh uh uh I would now uh request uh uh for the opening of 9:27 9 minutes, 27 seconds the uh question answer session. Thank you very much. 9:34 9 minutes, 34 seconds Thank you very much. We will now begin the question and answer session. 9:39 9 minutes, 39 seconds Anyone who wishes to ask a question may press star and one on the touchstone phone. If you wish to remove yourself 9:47 9 minutes, 47 seconds from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. 9:55 9 minutes, 55 seconds Ladies and gentlemen, we'll wait for a moment while the question cue assembles. 10:06 10 minutes, 6 seconds The first question is from the line of Nirman from Unique PMS. Please go ahead. 10:14 10 minutes, 14 seconds And yes sir uh thank you for the opportunity. So the first point sir I would like to appreciate our efforts in the castings division. So we can see in 10:22 10 minutes, 22 seconds the realizations that you know we've increased the share of value added and complex castings and so just if you 10:31 10 minutes, 31 seconds could talk about this journey you know how we are progressing versus your expectations the opportunity and how do 10:38 10 minutes, 38 seconds you see this segment evolving in the f in the future I think uh uh uh I would say very 10:47 10 minutes, 47 seconds encouraging uh at the same time uh be casting in business with respect to manufacturing, 10:55 10 minutes, 55 seconds process management and progress is tough. Uh our effort to grow 20 25% are 11:03 11 minutes, 3 seconds not realistic. uh as I have been talking uh many many years we keep looking 11:09 11 minutes, 9 seconds forward to uh growing volumetric growth of uh uh say 15% which I consider as uh 11:18 11 minutes, 18 seconds as reasonably good uh against the last year one 1 lakh 39,000 we are uh this 11:25 11 minutes, 25 seconds year uh gone up to 1 lakh 62,000 about 23,000 11:32 11 minutes, 32 seconds uh tons of casting uh produced more and sold more and uh we expect that we will 11:39 11 minutes, 39 seconds march forward to go to maybe about 1 lakh 90,000 because we have large number 11:46 11 minutes, 46 seconds of castings and development one by one who will go into the serial production and uh demand for casting remains robust 11:55 11 minutes, 55 seconds from auto sector as well as the tractor sector. uh we have uh also uh now we have gone ahead and we will be 12:02 12 minutes, 2 seconds commissioning sixth foundry which happens to be large casting foundry and uh as you know there's a growth in the 12:12 12 minutes, 12 seconds large casting we expect to get good amount of loading and uh also I would say that our startup of 12:21 12 minutes, 21 seconds Oliver Engineering in Rajpura has gone well last year we could uh uh produce 12:28 12 minutes, 28 seconds 13,500 ton but uh towards the end of the year month of uh January, February, 12:34 12 minutes, 34 seconds March, we could produce 1,700 metric ton uh per month and uh we are putting all 12:43 12 minutes, 43 seconds out efforts to uh take the production to at least 2,000 tons per month and so 12:50 12 minutes, 50 seconds that we can go to 24,000 tons of production and sales in this year. We have uh a large capacity under 12:59 12 minutes, 59 seconds utilization in Solapur and we are putting uh our best effort how we can go Solapur to 60,000 tons. Uh we have 13:09 13 minutes, 9 seconds already started working uh what we do next where we create the capacity uh for 13:16 13 minutes, 16 seconds our seventh foundry and uh uh we will have to uh uh create that foundry 13:24 13 minutes, 24 seconds otherwise we will uh uh fall short in terms of our manufacturing capacity over the next 2 three years. We have 13:33 13 minutes, 33 seconds physibility of features expirational volume growth to up to uh three lakh 13:40 13 minutes, 40 seconds metric ton peranom. So we need more foundaries and we will work to generate 13:46 13 minutes, 46 seconds create more foundaries and uh keep uh increasing the output uh 10 to 15% every year. 13:58 13 minutes, 58 seconds Understood sir. And uh so secondly a similar related question. So uh we have added one slide about you know macro 14:06 14 minutes, 6 seconds tailwind in our PPC. So if you could provide some more detail about how it benefits our segment and more on how 14:14 14 minutes, 14 seconds prepared are we to take advantage of these tailwinds. 14:19 14 minutes, 19 seconds Uh so uh I think uh basically uh we saw a commodity price increase uh in the 14:26 14 minutes, 26 seconds last quarter uh uh with respect to pigaran. Uh the international prices of pigaran seems to be very encouraging. uh 14:35 14 minutes, 35 seconds whether that will convert into Indian pig prices going up uh uh you know uh 14:42 14 minutes, 42 seconds need to be seen but uh international prices of pigaran have moved to $475 which is very very encouraging. So we 14:51 14 minutes, 51 seconds are closely watching that and how we can realize better pricing on pigaran uh that should uh also convert into better 14:59 14 minutes, 59 seconds pricing on steel as well as better pricing on the tubes. Uh there has been good amount of pull both for uh uh 15:08 15 minutes, 8 seconds pigaran as well as steel because foundaries are producing well, steel plants are producing well, steel outputs 15:15 15 minutes, 15 seconds are going up, infrastructure has picked up and absorption is reasonably good. So I'm sure that uh uh it has to be seen in 15:25 15 minutes, 25 seconds the background of uh uh two three developments. One is of course the uh 15:32 15 minutes, 32 seconds what we called as tariff period. After that it was uh you know the uh war in 15:39 15 minutes, 39 seconds the Middle East, Hermos blockage uh power the fuel cost going up and disruptions 15:47 15 minutes, 47 seconds uh in many areas in many places. In spite of that uh I think we are still uh optimistic. we are talking about uh uh 15:56 15 minutes, 56 seconds better demand position and we continue to grow uh I think uh uh it's only because of the tailwinds we have been 16:04 16 minutes, 4 seconds able to uh sustain and also grow in volume and talk about growth in coming quarters as well. 16:12 16 minutes, 12 seconds Understood. And sir we also mentioned something about alloy steel. So if you could talk something about that what are we doing in this and how uh 16:21 16 minutes, 21 seconds uh I have talked about this earlier also our uh uh our uh uh long-term plan is to 16:28 16 minutes, 28 seconds set up the uh one of the blast furnace in copper going to uh steel uh and uh 16:36 16 minutes, 36 seconds that will result into sales going down to uh five lakh t and not six seven lakh 16:42 16 minutes, 42 seconds ton and uh but Plast2 will go for the alloy steel production and we want to expand the 16:52 16 minutes, 52 seconds seamless tube plant in Baramati so that the entire steel blooms go to Baramati and the Jajuri uh alloy steel as you 17:01 17 minutes, 1 second know we we are currently at about 30% uh green powers and uh we are pushing hard 17:08 17 minutes, 8 seconds uh to commission another 35 megawatt of uh solar power plant by July August 17:15 17 minutes, 15 seconds And uh another 25 megawatt of wind power maybe by September. And uh the 17:21 17 minutes, 21 seconds equivalent of uh uh this is uh like 55 megawatt. So 55 + 35 we are about 90 17:30 17 minutes, 30 seconds megawatt of uh uh solar equivalent wind and solar put together and we already have uh another uh 70 megawatt in Jala 17:40 17 minutes, 40 seconds up and running. So we will uh reduce our CO2 emissions carbon uh will be lower and we are green steel producer at Jury. 17:51 17 minutes, 51 seconds We want to uh do the debottlenecking of the rolling mill and see that we can roll the entire uh three lakh t so that 18:00 18 minutes out of that 50,000 goes to nagar or 60,000 goes to ihilia nagar and the 18:06 18 minutes, 6 seconds remaining 2,000 which is 20,000 tons per month should go for the uh sales uh of 18:15 18 minutes, 15 seconds non-kile sales. So currently we are last year at 85,000 and uh we are putting effort to see that uh by the time we 18:24 18 minutes, 24 seconds come up with steel plant we our sales goes to that. So we are looking at expanding uh uh the external sales and 18:33 18 minutes, 33 seconds also expanding the internal consumption so that uh we go up in the singles tube. 18:41 18 minutes, 41 seconds Simless tube in Baramiti. We would like to see that our 18:48 18 minutes, 48 seconds capacity goes to 4 lakh metric ton perm by adding uh expander mill and uh uh 18:55 18 minutes, 55 seconds increasing the capacity by 1 lakh 50,000 uh plus existing capacity of 2 lak 30 which we are trying to realize uh coming 19:05 19 minutes, 5 seconds year itself. So uh I would say that uh uh uh all this thought is in place uh 19:13 19 minutes, 13 seconds but whether we want to expand the steel beyond copper one plant of course phase two is to uh take both the uh MBF into 19:22 19 minutes, 22 seconds steel. Uh we also have the opportunity at Hirur uh we have planned to upgrade the blast so that it can also produce 19:31 19 minutes, 31 seconds very close to three lakh ton of uh uh pigaran either to continue as pigaran or to get into either spun pipe or get into 19:40 19 minutes, 40 seconds steel. These are the opportunities available to us. Uh but I think uh we have the road map. We would like to see 19:48 19 minutes, 48 seconds that we progress on that journey. uh uh basically uh going strong with respect 19:54 19 minutes, 54 seconds to green steel. We have already started preliminary work on uh how do we bring battery 20:02 20 minutes, 2 seconds storage system in megawatt level so that we can uh increase the uh utilization of 20:08 20 minutes, 8 seconds green power in spite of the uh new regulations coming in Maharashtra. 20:16 20 minutes, 16 seconds Sure. Uh thank you and all the best. Thank you. 20:23 20 minutes, 23 seconds Thank you. The next question is from the line of fun from Monica Ventures. Please go ahead. 20:30 20 minutes, 30 seconds Uh yes sir. Uh thank you for the opportunity. So my first question is on the casting. So since last six year our 20:37 20 minutes, 37 seconds customer count was steady at 26 and in this quarter round we added three new customers to our casting market. So this 20:46 20 minutes, 46 seconds is very significant significant and we just would like to know a bit more about the customers. This is these are domestic customers or international 20:53 20 minutes, 53 seconds customers. Are these customers commercial vehicle, passenger vehicle or equipment? How these customer are shaping our new product line? 21:06 21 minutes, 6 seconds Uh let me say that uh the new customer acquisition uh uh who is a diesel engine 21:13 21 minutes, 13 seconds manufacturer uh will have facility in India but the manufacturing would be for India and uh 21:22 21 minutes, 22 seconds uh export also but for us it will be Indian supply. uh others uh uh two 21:28 21 minutes, 28 seconds customers uh basically these engines not only uh the stationary engine application they also go for uh tractors 21:38 21 minutes, 38 seconds uh uh uh t five next level uh I think the customers uh we have uh booked the 21:47 21 minutes, 47 seconds uh direct export orders also we are starting with uh uh small direct export I think uh this would be earth moving 21:54 21 minutes, 54 seconds equipments and we have a visibility to uh see more exports coming uh uh both in 22:03 22 minutes, 3 seconds uh earth moving equipment as well as tractor industry. 22:08 22 minutes, 8 seconds So uh can we expect a meaningful volume contribution in the two years from these three customers in terms of exports and in domestic terms also? 22:19 22 minutes, 19 seconds Yeah, I think uh there is a uh clearcut volume growth plan and uh timeline for 22:27 22 minutes, 27 seconds SOP and uh those are uh fixed deadlines and we will follow that. We have no choice but to follow that. 22:36 22 minutes, 36 seconds Okay. And uh as I mentioned our visibility for uh uh next 3 4 years is a 22:45 22 minutes, 45 seconds volume going up to uh three lakh metric t perm 22:51 22 minutes, 51 seconds and we are uh talking about creating uh as it is we are uh shortly commissioning 22:58 22 minutes, 58 seconds the sixth foundry and we have uh in my view no choice but to uh immediately 23:05 23 minutes, 5 seconds take up uh seventh foundry uh program to ensure that we service the customers without any failure. 23:16 23 minutes, 16 seconds Okay. And sir, next question would be on the realization as you can see there is a pretty significant jump but uh as well 23:23 23 minutes, 23 seconds as I see the there are some export jump in percentage. So we are up from 20% to 28%. And the CV segment is also up from 23:33 23 minutes, 33 seconds 16 uh 12% to 16%. So is the realization is only uh for this particular quarter due to this changes or we are 23:42 23 minutes, 42 seconds strategically shifting our focus to more CV or more export oriented from our traditional tractor kind of uh volumes. 23:52 23 minutes, 52 seconds I I think it's uh very important to know that uh all our customers are looking towards Kfile for 24:01 24 minutes, 1 second uh intricate castings, difficult castings and blocks and heads more. uh our portfolio of housing has not grown 24:10 24 minutes, 10 seconds much tractor housings and uh another thing uh hence I would say that all our 24:18 24 minutes, 18 seconds new order bookings uh are at better pricing than conventional uh tractor 24:24 24 minutes, 24 seconds housings or uh tractor crank cases. So we'll continue to uh progress on sales 24:31 24 minutes, 31 seconds realization. uh this sales realization which has remained flattish is after giving the commodity price reduction to 24:39 24 minutes, 39 seconds our customers. Another very important aspect is in all the three locations uh our uh machine shops are progressing 24:49 24 minutes, 49 seconds quite uh good and uh we expect uh within a year that we will have a machining 24:56 24 minutes, 56 seconds value of about 100 crores. So uh uh we continue we uh long-term we bought uh uh 25:06 25 minutes, 6 seconds 22 uh HMC's all those HM uh bulk booking of 25:13 25 minutes, 13 seconds the machines all have been absorbed 22 machines are in into operation maybe couple of them are shortly getting into 25:21 25 minutes, 21 seconds operation we are looking forward to order the next uh lot of uh machines so uh it's the combination of better price 25:30 25 minutes, 30 seconds casting joining the production as well as machining coming in uh which has uh and also the better pricing from some 25:39 25 minutes, 39 seconds export casting which is uh contributing to sustaining the realization and I also 25:46 25 minutes, 46 seconds look forward for the improved sales realization in casting because of these uh strategic initiatives taken by us. 25:59 25 minutes, 59 seconds Can we expect a sustainable improvement in the regulation in two years as the export are growing as the complexities 26:06 26 minutes, 6 seconds of the product is going? So base was 125 and can we accept 130 kind of range for next two years? 26:16 26 minutes, 16 seconds Uh definitely much more than that because uh the commodity price increases will also start coming in these quarters 26:24 26 minutes, 24 seconds and uh the reductions given by us were of the order of 10 rupees per kg or 12 rupees per kg and uh I expect part of it 26:33 26 minutes, 33 seconds at least uh flow back and also uh in the coming quarters we will have more newly 26:40 26 minutes, 40 seconds developed uh castings picking up the volumes and in next two years In my uh assessment, I have not done exact 26:48 26 minutes, 48 seconds calculation, but it will definitely go beyond uh 130 rupees per k. Okay, sir. I'll come back with you. 26:57 26 minutes, 57 seconds Thank you. Thank you very much. 27:01 27 minutes, 1 second Thank you. The next question is from the line of DE Kakia from Antic Stock Broking Limited. Please go ahead. 27:10 27 minutes, 10 seconds Uh hello sir. Thank you for this opportunity. Uh I I'm sorry to interrupt sir. You you sound a little bit dist. Can you speak louder please? 27:19 27 minutes, 19 seconds Uh is this better now? Can you hear me? Yes. Yeah, better you can. 27:24 27 minutes, 24 seconds Yes. Uh sir, I wanted to ask uh if you can share what was the utilization of the new solar pur foundry during 4Q. 27:35 27 minutes, 35 seconds See our uh uh the minimum uh expectation from both the lines uh is uh uh at least 27:43 27 minutes, 43 seconds uh uh 6,000 tons uh uh per month and uh 27:50 27 minutes, 50 seconds actual uh realizable maybe it could be slightly another 5% more but I expect at 27:56 27 minutes, 56 seconds least 6,000 against that we are at 4,200 uh last quarter uh against uh 6,000 ton 28:05 28 minutes, 5 seconds I would say this is about 70% another 30% utilizable capacity utilization can 28:12 28 minutes, 12 seconds be improved in next few quarters maybe three four quarters 28:19 28 minutes, 19 seconds okay so when would we uh be able to reach the 45,000 per quarter uh run rate uh that we were 28:28 28 minutes, 28 seconds planning earlier sir uh see uh I one is a merger of Oliver because we shifted some housings 28:37 28 minutes, 37 seconds to Oliver and here we are trying to produce more block and head. I would say that very shortly we should be able to 28:44 28 minutes, 44 seconds get uh uh to a level of uh 28:56 28 minutes, 56 seconds uh about 15,500 per month into three would be 45 46,000 29:05 29 minutes, 5 seconds I think should happen uh very shortly. 29:11 29 minutes, 11 seconds Okay. Uh after the merger 2,000 will appear here. What 1700? I said 5,000 ton 29:18 29 minutes, 18 seconds per quarter will appear in our book. So I think we should see within couple of quarters we should go to 45,000 per 29:25 29 minutes, 25 seconds quarter with Oliver of course. Oh okay sir. 29:30 29 minutes, 30 seconds Okay. Uh so will you be able to guide us on what kind of sales volume we can expect from the company uh across segments uh in FI27. 29:43 29 minutes, 43 seconds See what has happened is you have seen so many uh external developments like commodity falling like anything. Now we 29:51 29 minutes, 51 seconds are uh uh seeing the reverse of that and uh uh that should definitely uh help us 29:59 29 minutes, 59 seconds in terms of uh uh sales realization going up. And uh another thing is uh also uh our efforts to increase the 30:07 30 minutes, 7 seconds volume in pigarum casting as well as steel and tube uh continues. uh I I 30:15 30 minutes, 15 seconds definitely look forward uh that we should uh succeed in getting uh uh at least uh uh 15% growth once again. 30:26 30 minutes, 26 seconds I hope that the communities don't fall again. That pulls us down. 30:34 30 minutes, 34 seconds Okay sir. Okay. Thank you sir. Best of luck. I'll get back in the queue. Thank you very much. Thank you. 30:43 30 minutes, 43 seconds Thank you. The next question is from the line of Prolin Nandu from Edelis Public Alternatives. Thank you and please go ahead. 30:52 30 minutes, 52 seconds Hi namaste sir. Uh good evening. Uh hi sir. Hi good evening. 30:58 30 minutes, 58 seconds Just a question again on a FI27 guidance on the casting volumes. right now uh 31:05 31 minutes, 5 seconds correct if I'm wrong sir uh our one quarter back or two quarter back our aspiration was to reach close to uh you 31:13 31 minutes, 13 seconds know 1 lakh 85 to 1 lakh 90,000 metric tons of volume from combined 31:20 31 minutes, 20 seconds right including Oliver uh for the uh entire year right of FI27 uh and now you you know through the 31:28 31 minutes, 28 seconds previous participant questions you mentioned that you know 45,000 we'll reach in couple of quarters And then again you mentioned that that 31:35 31 minutes, 35 seconds 15% growth right so I think we'll fall short of that number right in some sense 31:42 31 minutes, 42 seconds of our previous target of 185 to 190,000 metric ton uh is my assessment correct 31:49 31 minutes, 49 seconds sir and you know uh because this this it's been our aspiration for quite some time now and I I appreciate the uh 31:58 31 minutes, 58 seconds external challenges but when we give out this guidance are we building in that such challenges will come in the future 32:04 32 minutes, 4 seconds as well. Uh right and on that basis what kind of uh volume numbers uh should we expect in the casting division in FI27? 32:16 32 minutes, 16 seconds No, I think uh we are committed to the numbers what you mentioned one lakh uh 32:23 32 minutes, 23 seconds 80 85 90,000 is the numbers we look forward. uh I'm very uh clear that 32:30 32 minutes, 30 seconds Solapu should produce and sell 5,000 ton which becomes 60,000 ton and we are more 32:36 32 minutes, 36 seconds than uh 1 lakh t already about 1 lakh 5,000 in coord and uh uh you know we are 32:44 32 minutes, 44 seconds saying 25,000 should come from the uh oliver oliver so uh I I I am definitely 32:53 32 minutes, 53 seconds we uh what numbers I'm talking is uh uh production numbers not exactly the sales numbers uh there will be some small 33:02 33 minutes, 2 seconds difference with respect to two to 3% found stage rejection but uh I think uh 33:10 33 minutes, 10 seconds 1 lak 85,000 kind of number remains our target and we are working towards that for the financial year 2627 33:20 33 minutes, 20 seconds okay so just two followup questions sir uh let's say I I would request you to also appreciate that Last year also we have increased 33:29 33 minutes, 29 seconds the casting production and sales by 23,000 ton. 33:33 33 minutes, 33 seconds No that that is appreciated sir just wanted to no mean see you know even this year we will put that effort how do I get 33:41 33 minutes, 41 seconds another 25,000 increase 62 become yeah 88 it should come and uh that's what I am trying to explain. Thank you. 33:53 33 minutes, 53 seconds I get your point. So just on the uh just on the Solapur run rate right and also olival run rate right you mentioned that 34:02 34 minutes, 2 seconds uh by the end of March we were at 1,700 now for our let's say 25,000 yearly run rate have we already reached 2,000 per 34:11 34 minutes, 11 seconds month run rate in April and where are we on solar on the monthly run rate how far are we on that 5,000 number for April 34:19 34 minutes, 19 seconds see first of all first of all let's say 1700 becomes 1 1700 1800 in April but by 34:28 34 minutes, 28 seconds the end of the year it should go to say 2,200 2300 but I should get 24,000 25,000 for the 34:36 34 minutes, 36 seconds whole year uh from 70 into 24 or 25 78,000 extra production and sales from 34:44 34 minutes, 44 seconds Oliver is possible feasible order bookings have already been done machining setup is already in place 34:52 34 minutes, 52 seconds wherever customer want machine castings and uh I'm pretty confident we can uh 34:59 34 minutes, 59 seconds progress uh uh uh another 78,000 extra quantity in uh uh oliver going towards 35:07 35 minutes, 7 seconds 24,000 tons from oliver 2,000 average per month and solapur we are currently I 35:14 35 minutes, 14 seconds just mentioned 4,200 metric ton uh per month last uh two three months also uh 35:22 35 minutes, 22 seconds this we are trying to take it to uh you know uh 5,000 metric ton uh average. So 35:30 35 minutes, 30 seconds uh instead of uh 4,200 we have to go to 5,000 subsequently maybe uh 3 400 more 35:38 35 minutes, 38 seconds but achieve 60,000 production maybe 55 56,000 sales from Solapur. 35:48 35 minutes, 48 seconds Understood sir. So, and so what I understand is that both this ramp up will be gradual, right? 1,700 will move to 1,800 for Oliver and it might end we 35:57 35 minutes, 57 seconds might end the year at 2,200 and that's how we average out at around 2,000 per month, right? And same is the case with Kafur as well. We are at 2,300 maybe 36:05 36 minutes, 5 seconds there will be 100 uh you know uh Oliver is straight line 36:11 36 minutes, 11 seconds it is easy. You go up 3 400 you are done. uh you know from 1700 Solapur is 36:19 36 minutes, 19 seconds ticklish and we are at 4,200 we are putting our best effort to see that we go up and uh we should average out close 36:28 36 minutes, 28 seconds to 5,000 in this year itself 26 27 okay so I had actually the question on 36:36 36 minutes, 36 seconds pig and sir but I'll just double click on this why shor is being ticklish is it because of uh that the 36:45 36 minutes, 45 seconds uh that and the customer that we are dealing with and approvals and all is that the uh ticklish nature of solar or what can you just give us? 36:55 36 minutes, 55 seconds Basically basic basically we struggle with the core core productivity and complexity of testing and it is nothing 37:04 37 minutes, 4 seconds to do with the customer itself. These are complicated uh blocks and heads. 37:10 37 minutes, 10 seconds They do take some time to stabilize the process and and stabilize the output 37:18 37 minutes, 18 seconds and uh nothing to do with customer but to do with the foundry process and complexities of the castings. 37:26 37 minutes, 26 seconds Okay. Okay. Uh and the uh the co the order that we had for uh the sorry to interrupt as I'll come back in the view. Thank you. 37:35 37 minutes, 35 seconds You're welcome. 37:38 37 minutes, 38 seconds The next question is from the line of Bat S from Quest Investment Advisor Private Limited. Please go ahead. 37:46 37 minutes, 46 seconds Hi sir, thank you for the opportunity and congratulation on uh showing improvement in the business train. Hello. 37:56 37 minutes, 56 seconds Yes sir. Go ahead sir. I'm able to hear. 37:59 37 minutes, 59 seconds Yeah sir. uh you have said that we are expanding this tube capacity to four leg 38:05 38 minutes, 5 seconds that I hear it but um before that we were also to expand I mean our diameter 38:14 38 minutes, 14 seconds also so what stage we are in any thought process on that and how much capex that 38:20 38 minutes, 20 seconds we plan for say 27 and 28 38:27 38 minutes, 27 seconds uh see uh let me cover one by on uh capacity capacity expansion in uh 38:35 38 minutes, 35 seconds Baramati uh is in the area of bigger size uh uh uh tubes. Uh first is uh uh 38:44 38 minutes, 44 seconds uh the immediate next year is to expand by capacity utilization improvement and 38:52 38 minutes, 52 seconds uh we have done the basic study, basic design and basic source uh study in 38:59 38 minutes, 59 seconds terms of where to go, what to get for the biggest tube mill. And uh we expect 39:06 39 minutes, 6 seconds that we should complete that project within next 1 and a half years. 39:14 39 minutes, 14 seconds And uh investment for that plant could be plus of 500 crores. It would be part 39:22 39 minutes, 22 seconds of our capex plan of uh 600 39:28 39 minutes, 28 seconds 6 about 600 700 crores per year. We have many projects. We have presets in pigar 39:35 39 minutes, 35 seconds and foundry uh steel as well as tube. So uh so it would be part of that and uh as 39:45 39 minutes, 45 seconds you must have noticed our cash generations are better than our ability to invest and we have reduced our uh 39:54 39 minutes, 54 seconds no no that's a commendable thing we have done in this year also we have generated I mean brought down the borrowings. 40:01 40 minutes, 1 second Yes. Yes. borrowings have been brought down substantially. 40:05 40 minutes, 5 seconds Uh I look forward to uh uh improve the investment in opportunity areas. Uh and 40:12 40 minutes, 12 seconds there are obligation areas also we have to make the mines operational beneficiation plant plet plant. So we'll 40:20 40 minutes, 20 seconds continue to invest uh at the rate of about 600 to 700 crores every year and uh we hope that we can generate better 40:29 40 minutes, 29 seconds than that uh in terms of cash generation. 40:33 40 minutes, 33 seconds So just if you can give some more qualitative color on the kind of order book that we have for the simul business 40:42 40 minutes, 42 seconds we were expecting inc. what stage we are and further how 40:50 40 minutes, 50 seconds do we and also we earlier we were think I mean had an order which is a say I mean joints and all which is a very high 40:58 40 minutes, 58 seconds margin business and difficult to manage um produce uh I I would like to say that we have uh 41:07 41 minutes, 7 seconds some uh pending orders of the uh last uh uh you know tender and we again expect 41:15 41 minutes, 15 seconds that uh new tender for this here should also come and we should be able to uh pick up those orders. Uh exports are 41:24 41 minutes, 24 seconds growing. uh the uh fuel prices are high and uh there is lot of reconstruction requirement is coming up and uh I expect 41:33 41 minutes, 33 seconds that both domestic and uh export orders in the oil and gas segment should be 41:41 41 minutes, 41 seconds better and robust and uh uh at the same time uh even the other applications uh 41:49 41 minutes, 49 seconds uh the progress of orders is uh supporting our expansion plans. 41:55 41 minutes, 55 seconds uh right now I don't have the figure of what is the pending orders uh right now I had not looked into that uh but I 42:02 42 minutes, 2 seconds would say that uh we expect uh uh debottling and capacity utilization 42:09 42 minutes, 9 seconds improvement polytric uh improvement of about uh uh 10 to 11% is what I look 42:16 42 minutes, 16 seconds forward uh to be achieved in uh tube business I also look forward that uh the 42:23 42 minutes, 23 seconds committee ity prices going up. Already I mentioned about international pigaran price, coal prices have gone up, gold 42:31 42 minutes, 31 seconds prices. I expect uh uh also the steel and tube prices to go up uh in coming months. CBD. 42:40 42 minutes, 40 seconds Okay. Thank you and all the best sir. Thank you very much sir. 42:47 42 minutes, 47 seconds Thank you. The next question is from the line of sake Kapoor from Kapoor and Company. Please go ahead. 42:54 42 minutes, 54 seconds Yeah, sir. Hope I'm audible. Yeah, you are audible. Thank you. 42:59 42 minutes, 59 seconds Yeah, thank you sir firstly for providing me this opportunity. So taking into account the the the road map that 43:07 43 minutes, 7 seconds we have charted currently. What how should our AITA margin uh trajectory uh stand for the current year and the year 43:17 43 minutes, 17 seconds ahead and also sir if you could just explain uh not only explain if you're going ahead if you could uh give a a 43:25 43 minutes, 25 seconds description about the backward integration part of the story that that we are uh currently in the opery to have 43:33 43 minutes, 33 seconds so that investors can have uh some more understanding or better understanding of how the how our systems are our products 43:40 43 minutes, 40 seconds are aligned in how is the company aligned backward in terms of backward integration. 43:46 43 minutes, 46 seconds Sir, I think uh uh thank you very much for this question. Let me quickly cover one is uh I have said that first of all 43:53 43 minutes, 53 seconds uh we want to bridge that gap of uh instead of every quantity of pigar and going into market blast furnace to we 44:02 44 minutes, 2 seconds make steel and that goes to uh baramati for seamless tube value added product going from jajuri into as steel sold in 44:11 44 minutes, 11 seconds the market. Uh these are uh the processes in between which we cover. Now coming to we have already done complete 44:19 44 minutes, 19 seconds requirement of uh uh coke coming out of our own cocoa and we are up and running 44:26 44 minutes, 26 seconds 52 megawatt of power waste heat recovery power which is coming from uh blast 44:33 44 minutes, 33 seconds furnace as well as coco one. Uh I also mentioned that we would like to invest 44:40 44 minutes, 40 seconds not very huge but about 125 to 150 crores in hir to upgrade the 44:48 44 minutes, 48 seconds blast furnace to take it to quarter million ton 250 3 lakh metric t perm 44:55 44 minutes, 55 seconds capacity and also bring the manufacturing cost in line with copper with efficiency improvement cost 45:03 45 minutes, 3 seconds reduction uh and uh I expect this kind of projects pro the project uh payback 45:10 45 minutes, 10 seconds periods are like less than 2 years. Uh we are also working that uh we complete the uh uh the solar and wind energy 45:20 45 minutes, 20 seconds project uh before uh August September 25 megawatt of wind 45:28 45 minutes, 28 seconds and 35 megawatt of solar and then take step up into battery storage system to 45:36 45 minutes, 36 seconds improve the wind and solar power utilization. Otherwise the government regulation won't allow prime uh slot 45:46 45 minutes, 46 seconds utilization of solar energy. Uh coming to uh you know you know we are 45:52 45 minutes, 52 seconds progressing well on operationalization of uh Jamunat Buddha iron or mines which has very good quality iron ore. We it 46:01 46 minutes, 1 second will help us in making better quality prime quality pigaran. For that we are uh once we operationalize we are 46:10 46 minutes, 10 seconds planning that we also bring in uh beneficiation and pellet plant so that 46:16 46 minutes, 16 seconds we can use all kinds of iron ore from the mines and we can beneficiate and pellets can be used in the blast one and 46:25 46 minutes, 25 seconds we can also sell if we want some quantity of pellets in the market which there is a market. So these are our uh 46:33 46 minutes, 33 seconds backward integration plans. What we are trying to do is uh mine to machine castings and mine to uh seamless tubes 46:42 46 minutes, 42 seconds and with uh energy management being the key thing and uh monetizing the uh uh 46:51 46 minutes, 51 seconds energy cost today into energy savings tomorrow. 46:58 46 minutes, 58 seconds Right sir. So, so just to just to have the understanding only two concluding part firstly sir how then our AITA 47:06 47 minutes, 6 seconds margin uh should shape up for the current uh current uh financial year if you could just give us the trajectory 47:13 47 minutes, 13 seconds and sir in our uh for this quarter our other expenses uh have gone up uh to 465 47:21 47 minutes, 21 seconds cr. So any oneoff item that we have factored in in terms of the other expenses and other income also was up to 47:28 47 minutes, 28 seconds 44 K. So if you could just explain the we need to come back. Uh I don't have uh ready numbers. I didn't look from that 47:37 47 minutes, 37 seconds angle. Uh is Satson on the call whether you will be able to take that Satson? 47:47 47 minutes, 47 seconds He was traveling I think. Correct. 47:50 47 minutes, 50 seconds Okay. No, it is no sir. I take it. And for the AITA margin trajectory sir with the type of uh 47:57 47 minutes, 57 seconds product profile changes and all and and again you have mentioned about big iron prices realizing also improving. 48:03 48 minutes, 3 seconds So exit of first quarter how are things uh up for us. Sir uh you you have seen 48:10 48 minutes, 10 seconds uh commodity market and especially has been terrible last three years not one year. it has fallen continuously without 48:18 48 minutes, 18 seconds substantial fall in the raw material prices. Uh we expect that that uh uh pain is over and we should be able to 48:26 48 minutes, 26 seconds improve little bit already. uh compared to October the pigarium prices are up 5,000 rupees compared to December 48:35 48 minutes, 35 seconds pagaran prices are up to 4,000 rupees and uh but of course as you have seen there is also cost pressure on that 48:44 48 minutes, 44 seconds dollar has gone to 95 and took coal prices on an average have gone up by 48:51 48 minutes, 51 seconds about $25 per ton of uh uh coal. So uh some factoring will happen to the cost 48:58 48 minutes, 58 seconds but something will get added to the value addition and uh uh little support on the commodity side I expect that uh 49:06 49 minutes, 6 seconds you know we are uh just above uh 12 and a half% of ITA and uh uh I would say 49:14 49 minutes, 14 seconds that our effort will continue I have been talking about that uh we are comfortable only when we are at 15% ITA 49:25 49 minutes, 25 seconds and uh in all products we continue to look for the uh volume growth. 49:34 49 minutes, 34 seconds Thank you sir. Thank you. 49:37 49 minutes, 37 seconds The next question is from the line of Sahil Sangi from Monak Network Network Capital. Please go ahead. 49:46 49 minutes, 46 seconds Hi sir uh good evening and uh congratulations for the improved set of numbers. Uh my first question is would you be able to uh give us the number of 49:55 49 minutes, 55 seconds the revenue that we did for the whole year at Oliver Engineering? 50:00 50 minutes No, I think I talked about uh uh uh 25,000 50:06 50 minutes, 6 seconds uh tons and it becomes 250 crores could be slightly more than 250 crores because of the machining value. 50:18 50 minutes, 18 seconds Uh 25,000 tons sir. This is that oliver you're saying for for the food? Yeah. Yeah. Only olive fi 26. 50:25 50 minutes, 25 seconds Fi uh no fi 26 is uh I think uh 118 or 50:32 50 minutes, 32 seconds uh 119 something like that. FI 26 I'm talking about 20 uh 7 going to uh 240 250 crores. 50:43 50 minutes, 43 seconds So so fi 26 is 118 crores I think. Correct. Yes. Yes. Yes. Okay. Okay. 50:49 50 minutes, 49 seconds Fine number. Don't catch me. Fine number. I don't have exact paper with me. No, roughly that's all right. 50:55 50 minutes, 55 seconds In the range of Yeah. In the range of 120 crores. 50:59 50 minutes, 59 seconds Correct. Secondly, uh if we had to look at uh how the market pricing has worked out for 51:06 51 minutes, 6 seconds I think uh the kind of uh hikes we received for Q4 were lower than that. So um what has uh not worked in our favor 51:15 51 minutes, 15 seconds and also the pig and volumes I think what you had guided uh in Q3 with respect to the debottleneck capacity now 51:24 51 minutes, 24 seconds we could go up to 140 kilot of uh um you know commercial sales also uh not not 51:30 51 minutes, 30 seconds counting the internal transfers so um I mean um is there is there I mean the 51:37 51 minutes, 37 seconds production also I mean was lower in Q4. No, I think uh uh two three things I would like to mention here. One is your quarter four full has not come. 51:50 51 minutes, 50 seconds there was uh something uh you know startup and all that October, November, December but it uh spilled over 51:57 51 minutes, 57 seconds something to January we didn't get the full quantity of uh uh hir in quarter 4 one second thing one of the blast one is 52:06 52 minutes, 6 seconds we took stoppage for 5 days to complete the uh complete the what we call rumaging some production loss happened 52:14 52 minutes, 14 seconds during the quarter I would request you that in generally when you see I'm talking about uh uh total tonnage for 52:22 52 minutes, 22 seconds the year is 6 lakh 23,000 t and uh in that 68,000 is stoppage. 52:32 52 minutes, 32 seconds Right. Right. Right. And if you put the productivity actually productivity of MBF1 and MBF2 uh in 52:41 52 minutes, 41 seconds copper have gone very well and their output has gone up. What has pulled pulled down is the hir and I expect that 52:50 52 minutes, 50 seconds little bit improvement positive contribution. We should be able to quickly go back to that number of 7 lakh 52:57 52 minutes, 57 seconds metric ton uh or at least 680 690 numbers are possible with the current productivity. 53:05 53 minutes, 5 seconds Another step a very important step uh s is that uh our oxygen towards the end of 53:12 53 minutes, 12 seconds this year we will commission 150 uh tons per day oxygen plant and we'll enhance 53:19 53 minutes, 19 seconds the uh oxygen enrichment to 5% from current 2 and a half% level and uh PCI 53:27 53 minutes, 27 seconds uh level today we are at uh uh 130 kg and can go up to 160 170 kg which will 53:35 53 minutes, 35 seconds result into uh figure output increase and co- consumption reduction. So we will get uh productivity benefit as well as the uh uh the cost benefit. 53:48 53 minutes, 48 seconds Right sir. Right. And sir lastly pricing wise are we there? I mean or because the market pricing was much higher if I had 53:55 53 minutes, 55 seconds to look at the blended Q4 pricing. So is there room for further? 54:00 54 minutes See what has happened? You know I just mentioned compared to December the price increase uh uh implemented is 4,000 54:10 54 minutes, 10 seconds rupees per ton. But there are always uh you know when I say we implement from January pending orders we typically have 54:18 54 minutes, 18 seconds 15 days uh uh uh order book going on for pigaran because we run with one day stock to 2 days stock that means uh 54:27 54 minutes, 27 seconds there are always order book position. So we commit to our regular customer one month also. So somebody who takes uh uh 54:34 54 minutes, 34 seconds say 3,000 t per month he books one order for the month. So towards the end of December, January is already booked. So 54:42 54 minutes, 42 seconds there was some still into January I know and uh uh also I would say end of March also we had some more uh fine correction 54:52 54 minutes, 52 seconds in price increase happening even in uh April. So full benefit has not come into 54:59 54 minutes, 59 seconds quarter 4. What is the price running today? 55:04 55 minutes, 4 seconds So 1 QFI 27 sir how how would the spreads move now because cooking coal has further risen. Uh so what kind of movement you expect versus Q4. 55:15 55 minutes, 15 seconds Uh I have asked our people to work on the uh three things basically you know uh what is the uh coal purchase 55:25 55 minutes, 25 seconds commitments we have pricing also we have always 3 months coal with us. fourth month will change. Uh one is that and 55:33 55 minutes, 33 seconds what is the coke price, what is the uh you know our uh uh uh production cost uh 55:40 55 minutes, 40 seconds and what could be our margins. I think we should be able to uh bring more clarity uh as you move ahead. 55:49 55 minutes, 49 seconds Thank you so much. 55:50 55 minutes, 50 seconds uh you your your concern on cost as well as see just now today's market condition what I realized is international price 55:58 55 minutes, 58 seconds of pig at 475 don't I don't know see whether it is realizable how much we can realize how we can push for uh price 56:07 56 minutes, 7 seconds increase but uh I think uh price increase in inevitable it will go up to figure 56:16 56 minutes, 16 seconds thank you sir all the best thank Thank you. Thank you. 56:23 56 minutes, 23 seconds The next question is line is from the line of Deepak from Sundaram Mutual Fund. Please go ahead. 56:31 56 minutes, 31 seconds Thank you for the opportunity. Am I audible? 56:34 56 minutes, 34 seconds Yes, you are audible. Please go ahead sir. 56:37 56 minutes, 37 seconds Yeah. Hello sir. Uh sir, my first question is on uh power cost. So would it be possible to quantify that in 56:44 56 minutes, 44 seconds absolute current terms how much uh power cost did we save in FI26 and you know we do have this uh 35 56:52 56 minutes, 52 seconds megawatt solar project and 25 megawatt wind project also commercializing in Q2 of this fiscal year. So in FI 26 and 27 57:02 57 minutes, 2 seconds and 28 means an rough ballpark range of how much power cost will we be seeing on account of all these initiatives that we are taking. 57:13 57 minutes, 13 seconds uh see first of all uh uh last year some regulation changes also happened utilization period something is in the 57:21 57 minutes, 21 seconds court so leaving that aspect I think uh solar power plant we got a benefit of 57:28 57 minutes, 28 seconds about 70 crores and 26 57:34 57 minutes, 34 seconds 26 and uh we will start commissioning of both wind in solar uh you know step by 57:43 57 minutes, 43 seconds step starting from June and by September our present plan uh subject to any 57:52 57 minutes, 52 seconds delays because of the pre-mon but we want to finish commissioning June 57:58 57 minutes, 58 seconds July other September so I there are also complicated issues uh I need to plot 58:06 58 minutes, 6 seconds everything uh wind generation is more in monsoon and solar generation is less in 58:13 58 minutes, 13 seconds monsoon. So they are complimentary. So I expect that uh uh I just mentioned uh 58:19 58 minutes, 19 seconds that uh uh 25 megawatt uh 58:26 58 minutes, 26 seconds is uh equivalent to almost like uh 90 megawatt of uh solar and uh given the choice we 58:36 58 minutes, 36 seconds should get uh uh as it commissions about 70 80 90 crores benefit uh even after 58:44 58 minutes, 44 seconds taking into consideration the new regulation. So uh 58:51 58 minutes, 51 seconds but we will get maybe half of that in this financial year. 58:57 58 minutes, 57 seconds Okay. So 70 cr was for FI26 then it would be 70 + 45 cr in FI27. 59:03 59 minutes, 3 seconds Yeah that is what I expect the benefit and yes right and let's say if uh it runs at a peak capacity then it would be 70 + 90. 70 + 90. Yes. 59:15 59 minutes, 15 seconds Okay. Got it. 59:17 59 minutes, 17 seconds Yeah. Uh and the second question uh is on uh volumes. So I don't know whether it was shared earlier or not. So I did 59:24 59 minutes, 24 seconds hear that we are talking about 15% uh volume growth uh on the costing front in FI27. Uh would it be possible to 59:31 59 minutes, 31 seconds highlight that what kind of uh volume are we targeting external volume sales I mean to say in pig iron uh seamless tube and steel for FI27. 59:42 59 minutes, 42 seconds See uh uh all castings mainly external sales so we don't have any casting internal consumption in KFL. So whatever 59:51 59 minutes, 51 seconds it comes 186 it will all be external sale that's what we target I think we can achieve that level in case of 59:59 59 minutes, 59 seconds casting uh and in case of tube uh you know we are talking about we did one lakh 80,000 1:00:07 1 hour, 7 seconds tons and uh one minute hold let me 1:00:14 1 hour, 14 seconds take off the papers pick. 1:00:21 1 hour, 21 seconds Uh sales 1:00:43 1 hour, 43 seconds uh 1 lakh 88,000 uh uh 700 1:00:49 1 hour, 49 seconds uh against uh last year's 160800 and uh from uh here we are talking uh 1:00:57 1 hour, 57 seconds definitely we should uh uh bring in uh around 10 to 11% volumetric growth 1:01:06 1 hour, 1 minute, 6 seconds okay and some uh benefit and sales realization we have really gone down to 1:01:14 1 hour, 1 minute, 14 seconds 10% value uh going down But sir um let's say if this OMGC order 1:01:22 1 hour, 1 minute, 22 seconds picks up I think there is a delay in that also and since those are high value order and then you have commodity inflation. So would it be fair to assume 1:01:32 1 hour, 1 minute, 32 seconds that this year as we have ended with around 1 lakh 13,000 NSR per ton in tubes this can go you know maybe 6 to 1:01:41 1 hour, 1 minute, 41 seconds 7,000 incremental in FI27 I think out of what we have lost 10% 1:01:49 1 hour, 1 minute, 49 seconds I'm at least looking forward recovery of 5 to 6%. Okay. 1:01:57 1 hour, 1 minute, 57 seconds And I think it matches with your number one lakh 13,000 5 to 6% uh should get 1:02:06 1 hour, 2 minutes, 6 seconds recovered because see the pigar is going up, steel is going up and uh everything going up power fuel. So at least uh half 1:02:14 1 hour, 2 minutes, 14 seconds of that uh drop in the last year should be recovered this year. 1:02:22 1 hour, 2 minutes, 22 seconds Due to time constraint that was the last question for the day. I now hand the conference over to Mr. Gumas sir for closing comments. Please go ahead. 1:02:33 1 hour, 2 minutes, 33 seconds Uh thank you very much. uh you know a lot of uh uncertaintity times uh because of the uh the war situation and uh uh 1:02:42 1 hour, 2 minutes, 42 seconds India's story still remains robust and we want to progress ahead uh naturally questions are more and uh uh as 1:02:51 1 hour, 2 minutes, 51 seconds uncertainties are both uh in spite of all these conditions we want to create something bring some growth and uh bring 1:03:00 1 hour, 3 minutes some profitability improvement so that is the area of questions. Uh uh thank you very much everyone for joining this 1:03:09 1 hour, 3 minutes, 9 seconds call and uh uh I wish each and every one of you all the best. Thank you so much over to uh moderators. 1:03:20 1 hour, 3 minutes, 20 seconds Thank you. On behalf of antics of Broken Limited that concludes this conference. Thank you for joining us.