Maan Aluminium Ltd — Q3 FY26

Maan Aluminium Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=XjSbR1dzFfI Published: 2 months ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to the man Aluminium Limited Q3 FI26 earnings conference call. This 0:11 11 seconds conference call may contain forward-looking statements about the company which are based on the beliefs, opinions and expectations of the company as on date of this call. 0:22 22 seconds These statements are not the guarantees of future performance and involve risk and uncertainties that are difficult to predict. As a reminder, all participant 0:31 31 seconds lines will be in the looking and there will be an opportunity for you to ask questions after the presentation concludes. 0:40 40 seconds Should you need assistance during this conference call, please signal an operator by pressing star then zero on the touchstone. 0:48 48 seconds Please note that this conference is being recorded. I now hand the conference over to Mr. 0:53 53 seconds Jani from Noama Wealth. Thank you and over to you Mr. 0:59 59 seconds Yes, thanks Nali and uh thank you all for joining us today to discuss PCCF26 earnings of Man Aluminium Limited. We 1:08 1 minute, 8 seconds would like to thank the company for giving us the opportunity to host the call. On the call with us today we have the management team of Man Aluminium 1:17 1 minute, 17 seconds represented by Mr. Savvinda Najan the chairman and managing director and Mr. 1:22 1 minute, 22 seconds Umesh Chandra the chief financial officer. I would now like to hand over the call to the managing team for their 1:29 1 minute, 29 seconds opening remarks post which we can open the floor for Q& thank you. 1:39 1 minute, 39 seconds Yeah, good afternoon everyone and uh thank you for joining us for our Q3 FI26 earnings call. My name is Omesh Pan, CFO 1:48 1 minute, 48 seconds of Man Aluminium Limited. Joining me today is our chairman sir who will be there shortly. We appreciate your continued interest and support. 1:59 1 minute, 59 seconds Uh let me begin first with the company overview then a brief overview of our Q3 and 9 months FI26 performance followed 2:07 2 minutes, 7 seconds by our operational updates and our strategic outlook. 2:13 2 minutes, 13 seconds Man Aluminium Limited is one of India's established aluminium extrusion players with over three decades of operating 2:20 2 minutes, 20 seconds history. The company is now undergoing a strategic transformation moving from a largely commodity extrusion model to a 2:28 2 minutes, 28 seconds technologydriven high value added aluminium converter. 2:33 2 minutes, 33 seconds We basically operate across two business verticles. The first one is manufacturing of aluminium extrusion 2:40 2 minutes, 40 seconds products which will be our core focus going forward. 2:44 2 minutes, 44 seconds The second vertical is our training, trading and distribution of primary aluminium which is our uh legacy business which is completely opportunitydriven. 2:55 2 minutes, 55 seconds Our key capabilities includes uh fully integrated operations where foundry extrusion anodizing machining and die shop are under one roof. 3:08 3 minutes, 8 seconds We have expanded our extrusion capacity from 10,000 tons per metric to 24,000 m. 3:15 3 minutes, 15 seconds Our recently added advanced capabilities includes 300 mm wide profile, 7 series alloy which has near steel strength 3:25 3 minutes, 25 seconds aluminium, precision machining and automative roof rail bending. Uh we have a strong export 3:32 3 minutes, 32 seconds presence with manufacturing revenues historically 60% which were completely exportdriven. 3:39 3 minutes, 39 seconds We have diversified and market catering from automotive, defense, aerospace, solar, railway, architecture, electrical and heavy engineering. 3:50 3 minutes, 50 seconds The company is investing aggressively to reposition itself towards higher margin application specific products. 3:59 3 minutes, 59 seconds So this was all about our company for the new investors who have recently joined us. Coming to the financial 4:06 4 minutes, 6 seconds performance of Q3 during Q3, our revenue from operations stood at 152 crores reflecting a 16% 4:15 4 minutes, 15 seconds year-on- decline primarily due to lower trading volumes uh which I have just explained that it is completely opportunitydriven and muted export 4:25 4 minutes, 25 seconds demand during the quarter. ITA came in at 7 crores showing a 15% year-on-year growth supported by improved 4:33 4 minutes, 33 seconds manufacturing mix and our cost optimization initiatives. 4:38 4 minutes, 38 seconds Well, FAD stood at 3 cr largely in line with last year despite higher depreciation and finance cost from recently capacity. 4:48 4 minutes, 48 seconds Abita margin for the quarter was approximately 5% impacted by operating leverage and ongoing ramp up cost at newly added facility. 5:01 5 minutes, 1 second Coming to 9 months FI26 performance highlight for the 9 months ended December 25 revenue was 554 crores 5:10 5 minutes, 10 seconds marginally lower by 2% yearon-year base increased by 19% yearonear to 25 crores 5:17 5 minutes, 17 seconds reflecting better value added contribution was almost stable at 11 cr 5:26 5 minutes, 26 seconds investors this clearly demonstrate that while topline growth was moderated. 5:32 5 minutes, 32 seconds Profitability improved due to our strategic shift toward higher value added manufacturing. 5:40 5 minutes, 40 seconds Coming to business verticals, our manufacturing revenue grew 10% yearon year in Q3 and almost 13% on a 9-month 5:48 5 minutes, 48 seconds basis, driven by higher exclusion volumes and increased value added sales. 5:54 5 minutes, 54 seconds Trading revenue showed a decline around 32% year-onear in Q3 which was a conscious strategic decision as I just 6:03 6 minutes, 3 seconds explained that this is a opportunitydriven business and we also move away from low margin commodity trading business. 6:13 6 minutes, 13 seconds Coming to operational and strategic updates our transportational capex at Pamur unit 6:20 6 minutes, 20 seconds one is now live. Uh we have extrusion capacity expanded from 10,000 to 24,000 metric peranom. 6:30 6 minutes, 30 seconds Latest capability upgraded to handle 300 mm profiles and 7 series alloy. 6:36 6 minutes, 36 seconds This capability upgrade you know enables entry our entry into defense aerospace automative and complex architectural applications. 6:46 6 minutes, 46 seconds Well, the Italian extrusion press commissioned in March 25 is stabilizing and we expect progressive utilization improvement over the coming quarters. 6:58 6 minutes, 58 seconds Further, we acquired the DEWAS facility in March 2025 via slum sale at 10 10.75 7:05 7 minutes, 5 seconds crores uh where the plant modernization is underway. Our trial projections are started. Commercial commissioning is expected over the next 8 to 10 months. 7:17 7 minutes, 17 seconds This unit particularly will focus on precision tubing and high value downstream products significantly 7:23 7 minutes, 23 seconds strengthening our product portfolio towards the capex road map. Basically 7:31 7 minutes, 31 seconds over the next three years we have planned cumulative capex of approximately 190 plus crores uh which will we have a split between uh our 7:40 7 minutes, 40 seconds further enhancement at pithampur where we have already acquired 2 acres of uh land where we are planning our anodizing 7:48 7 minutes, 48 seconds and powder coating treatment is already under expansion and new machining bending tooling and infrastructure will contribute another our capex plan. 7:58 7 minutes, 58 seconds Basically, these investments are aimed at transing man aluminium from a commodity exclusion player to a technologydriven high margin aluminium converter. 8:10 8 minutes, 10 seconds Market outlook and strategy basically uh looking ahead we see strong opportunity in import substitution particularly in defense and aerospace. 8:21 8 minutes, 21 seconds Regarding the US tariffs, uh withdrawal of anti-Tumping duties is yet not applicable to steel and aluminium. 8:28 8 minutes, 28 seconds However, uh discussions are at an advanced stage and we remain cautiously optimistic on a positive outcome. 8:36 8 minutes, 36 seconds Our focus basically remains on uh increasing our value added share particularly in the domestic markets and 8:44 8 minutes, 44 seconds improving our capacity utilization strengthening our margins through precision machining and anodizing. 8:54 8 minutes, 54 seconds See, while near-term challenges persist in the global demand, we remain confident that our expanded technical capabilities position us well for uh sustainable long-term growth. 9:07 9 minutes, 7 seconds In this quarter, we deliberately strengthen our balance sheet this quarter through preference equity to support growth while maintaining financial discipline. 9:18 9 minutes, 18 seconds Now with capital now in place and major assets commission the focus shifts fully to utilization mix improvement and operating leverage. 9:27 9 minutes, 27 seconds While near-term performance reflects ramp up cost we are confident that our strategic investment will translate into 9:34 9 minutes, 34 seconds stronger margin improved ROC and healthier cash flows over the medium term. 9:42 9 minutes, 42 seconds So we thank you all investors, partners and our employees for their continued trust and support. So now we'll now open the floor for questions please. 9:53 9 minutes, 53 seconds Thank you very much. We will now begin with the question and answer session. 9:58 9 minutes, 58 seconds Anyone who wishes to ask a question may press star and one on the touchstone telephone. 10:05 10 minutes, 5 seconds If you wish to remove yourself from the question queue, you may press star and two. 10:11 10 minutes, 11 seconds Participants, you are requested to use handsets while asking a question. 10:17 10 minutes, 17 seconds Ladies and gentlemen, we will wait for a moment while the question assembles. 10:26 10 minutes, 26 seconds You may press star and one to ask a question. 10:33 10 minutes, 33 seconds We have the first question from the line of Jadin Dammana from Swan Investments. Please go ahead. 10:39 10 minutes, 39 seconds Good afternoon sir and thank you for the opportunity. I just wanted to understand that on the manufacturing business you indicated that the uh volume and the 10:49 10 minutes, 49 seconds revenue was driven by the higher volume by 10%. So can you help us understand what was the cap capacity utilization 10:56 10 minutes, 56 seconds during the quarter and how shall we see a ramp up of the newly expansion capacity from 10 to 24,000 over next 9 11:04 11 minutes, 4 seconds to 12 months uh can you repeat 11:15 11 minutes, 15 seconds want to understand what was the capacity utilization during the quarter and the 9 month and how one can assume a ramp swap over the next 9 to 12 months. 11:27 11 minutes, 27 seconds It was almost 45% utilization, 25% utilization. So see uh that what that 11:34 11 minutes, 34 seconds capacity expansion that we have recently done basically uh it was almost 140% in one phase. So uh that is uh you know uh 11:43 11 minutes, 43 seconds it it typically it takes 12 to 18 months to stabilize. So uh there will be additional time for you know complex 11:50 11 minutes, 50 seconds profile customer approvals. So we are doing that basically. So we are already onboarding new customers in automative defension infrastructure. So uh we 11:58 11 minutes, 58 seconds expect gradual sequential improvement from FY27 onwards rather than an overnight jump basically. 12:05 12 minutes, 5 seconds So okay so Q3 basically it was a 45% on the consolidate capacity which was 10,000 25%. 12:12 12 minutes, 12 seconds 20 25%. And sir once we start once we start our pitham uh the dwas plant with the anodizing and the new expansion that 12:20 12 minutes, 20 seconds will kick in. How do we see our product mix changing and what sorts of profitability one can assume with the analyzing and the pithampur facility 12:29 12 minutes, 29 seconds comes in 12:36 12 minutes, 36 seconds uh definitely it will increase. So our basically commodity extrusion uh 12:44 12 minutes, 44 seconds from commodity extrusion we are expanding to a higher high value aluminium solutions. Mhm. 12:52 12 minutes, 52 seconds Dewas unit basically this uh modernization and refurbishment is underway and trial runs have started 12:59 12 minutes, 59 seconds beginning. So we expect uh commercial commissioning within the next 6 months. 13:04 13 minutes, 4 seconds Initially our JAS unit basically will focus on precision tubing and downstream value added product right 13:12 13 minutes, 12 seconds in terms of potential I would guide that FI27 will be a partial contribution here basically 13:19 13 minutes, 19 seconds from FI28 onwards DEWAS can generate around 100 plus cr of annual revenue at 13:25 13 minutes, 25 seconds optimal utilization basically definitely you will see the margins higher than our legacy exclusion business so they will 13:34 13 minutes, 34 seconds be our key profitability lever uh basically not just a volume addition basically. 13:39 13 minutes, 39 seconds So sir in terms of the margin because last year as you indicated that deas will be a key profitability driven. So if you look that last year we did near about almost 385 $400 of AITA per ton. 13:52 13 minutes, 52 seconds So with DEAS kicking in in next 6 months what's also AITA per ton one can work on and with your anodizing facility also 14:00 14 minutes coming in so there will be some cost savings there also. So once we ramp up to almost 80 85% utilization with an 14:08 14 minutes, 8 seconds operating leverage what will be a bit per turn once you'll assume on the overall business 14:14 14 minutes, 14 seconds see uh gradual improve improvements uh can be seen in starting FI27 so normalized margins around 8% over the 14:23 14 minutes, 23 seconds medium term we can see basically the key driver will be our operating leverage on fixed cost combined with our uh higher value added share because as of now our 14:32 14 minutes, 32 seconds current margin You will see uh these reflect three transitional factors basically. First of all, our underinflation of newly commissioned 14:40 14 minutes, 40 seconds capacity that Italian press at our higher depreciation and finance cost post capacity. 14:48 14 minutes, 48 seconds Mhm. 14:49 14 minutes, 49 seconds So structurally our margin profile is changing but uh almost after FI27 we can see uh that IITA normalizing basically. 15:01 15 minutes, 1 second So during this quarter what was the cost pertaining depreciation and the ramp up cost pertaining to the new unit that we 15:10 15 minutes, 10 seconds capitalized during the quarter the uh for this particular quarter 15:17 15 minutes, 17 seconds basically uh the depreciation was around 2%. 15:22 15 minutes, 22 seconds Okay. And expenses pertaining to the ramp up to the new facility that uh basically I will get get back to you. 15:31 15 minutes, 31 seconds Sure sir. Uh that's all from my as of now. If there's any further question I'll come back in a few. Thank you and all the best. 15:38 15 minutes, 38 seconds Thank you. 15:41 15 minutes, 41 seconds Thank you. A reminder to all the participants. You may press star and one to ask a question. 15:50 15 minutes, 50 seconds We have the next question from the line of Sam Sha from Noama. Please go ahead. 16:00 16 minutes Sam, please proceed with your question. Hello. Am I audible? 16:08 16 minutes, 8 seconds Yes, you're audible. Please proceed. Yeah. Uh thank you for the opportunity. 16:12 16 minutes, 12 seconds Uh so my question was regarding the weak revenue performance where uh trading and manufacturing revenues both have fallen. 16:19 16 minutes, 19 seconds So what can we expect in terms of revenue mix going ahead for the next 2 three years? 16:26 16 minutes, 26 seconds See again I just explained that uh basically what once uh we have make you know substantial investments we have 16:34 16 minutes, 34 seconds keep the platform ready. So now uh we are working towards uh you know towards designing a product mix uh and uh 16:42 16 minutes, 42 seconds driving these things forward. So basically uh it is not like means one or two year kind of uh thing uh these 16:49 16 minutes, 49 seconds aerospace defense it takes times to approval basically. So once we are in line almost after FI 27 and 28 we will be able to see a clear picture. 17:01 17 minutes, 1 second Okay sir in H1 FI26 our volumes were close to 4,000 metric tons. So what are the volumes for uh the 9 months? What have we done for this quarter? 17:13 17 minutes, 13 seconds It was around 25% of the total capacity utilized around 6,000 metric tons. 17:20 17 minutes, 20 seconds All right. 17:23 17 minutes, 23 seconds Um and sir can you explain a little bit more in detail as to what sort of capacity we are adding at the DEAS 17:32 17 minutes, 32 seconds facility in terms of extrusion or anodizing or counting? 17:41 17 minutes, 41 seconds They basically uh we are adding tubing capacity there. So our initial draw match machine is already there and trial 17:49 17 minutes, 49 seconds runs are going on. The capacity uh the the raw material capacity which is required basically extrusion thing. It 17:57 17 minutes, 57 seconds just got uh delayed by almost 8 months by Koreans because uh there were some 18:03 18 minutes, 3 seconds issues with uh the R&D kind of thing. So uh as of now the existing capacity is uh around 900 metric tons peranom. 18:16 18 minutes, 16 seconds All right sir understood. Um so sir these value added capacities that we have in terms of foundary anodizing and machining. 18:27 18 minutes, 27 seconds They are actually quite less compared to the extrusion capacity that we have of 24,000 metric tons. So wouldn't they be 18:35 18 minutes, 35 seconds a bottleneck towards adding margins ahead? No, basically it won't be a bottleneck. 18:42 18 minutes, 42 seconds Why? Because uh what we are trying we are trying very hard to execute you know additional facilities in terms of value 18:50 18 minutes, 50 seconds addition. So that I just explained that we have acquired 2 acres of facility in Pithamur so that the anodizing and our 18:58 18 minutes, 58 seconds powder coating unit can be started very uh at at a very fast-paced manner where our technical team is already uh 19:06 19 minutes, 6 seconds traveling overseas finalizing the machines and all. So it it won't be a bottleneck because this is not like a 19:13 19 minutes, 13 seconds you know one year or kind of easily uh thing that we can execute overnight. So uh company has plans we are we we are 19:21 19 minutes, 21 seconds trying very hard. So you will see uh the the reflection maybe uh in in coming uh you know half and two years basically. 19:31 19 minutes, 31 seconds All right sir. Understood. Uh that's all from my side for now. I'll fall back in the queue for the questions. Thank you. 19:38 19 minutes, 38 seconds Thank you. 19:42 19 minutes, 42 seconds Thank you. A reminder to all the participants, you may press star and one to ask a question. 19:49 19 minutes, 49 seconds We will take the next question from the line of Madurati from counter psychical investments. Please go ahead. So thank you for the opportunity sir. 19:57 19 minutes, 57 seconds wanted to understand what is the uh realization per micro ton premium that we'll get on this anodizing and the 20:05 20 minutes, 5 seconds powder coated extrusions and s what is the margin additional margin we can expect from this uh value added products 20:15 20 minutes, 15 seconds so just sorry our chairman has arrived so uh he will be you know more interested in you know answering these questions so I'm just handing over this 20:23 20 minutes, 23 seconds uh uh line to him just Shall we call? 20:35 20 minutes, 35 seconds Yes. Okay. Namaskar. 20:46 20 minutes, 46 seconds Yes. 20:49 20 minutes, 49 seconds Yes. Namaste sir. Sir anodizing or powder coating 20:56 20 minutes, 56 seconds premium versus a normal extrusions and what would be the margin additional margin we can get on this product we 21:03 21 minutes, 3 seconds will get around about 15,000 rupees per 20,000 rupees turn margin our facility is coming for 1,000 21:12 21 minutes, 12 seconds t for annoying and 10 to 12 rupees in powering 21:21 21 minutes, 21 seconds Okay. So 15 to 20,000 for anodizing and 12 12,000 for uh uh powder coating. 21:28 21 minutes, 28 seconds Yeah. 21:29 21 minutes, 29 seconds Okay. And sir, so when do we expect to actually ram this up because we have increased our capacity to 24,000 21:38 21 minutes, 38 seconds and so what is the issue? So can't we just make uh commodity products right now and utilize our capacity all the 21:45 21 minutes, 45 seconds time we get approvals from defense and aerospace that we are planning right first I am telling you that uh 21:55 21 minutes, 55 seconds press Italian from last month it will come 99% in 22:03 22 minutes, 3 seconds uh running condition 100%. Before that there is a lot of teeth problems Italian will come and sort out our problem. 22:12 22 minutes, 12 seconds Number one. Number two, our round about 500 to 600 tons order will be cancelled 22:18 22 minutes, 18 seconds from US. When they told that we are uh 22:25 22 minutes, 25 seconds charging 500% duty on India because of Russian oil at that time all orders are cancelled. 22:33 22 minutes, 33 seconds Now one of the director is going yesterday to US to clear these all things to getting order. So that is why 22:40 22 minutes, 40 seconds our last quarter is quietly you know hampered. Number three, we have contract 22:48 22 minutes, 48 seconds with Tata now we have signed already the samples for the big press is almost 50% 22:55 22 minutes, 55 seconds book but the samples and everything for the machining and cutting there are lot of 23:02 23 minutes, 2 seconds machines will come so samples are ready under trial I hope by this month or 23:10 23 minutes, 10 seconds starting of the first week we get the total order for press. 23:16 23 minutes, 16 seconds So we are tie up with the Tata for 500 tons per month. 23:21 23 minutes, 21 seconds So 6,000 6,000 t capacity will be built by Tata. They have signed with us. 23:29 23 minutes, 29 seconds Right. Sorry. 23:36 23 minutes, 36 seconds Sorry. Tell me again. So when will the starter contract start? When will we start supplying to them? 23:44 23 minutes, 44 seconds uh already samples one one item samples are ready second is under trial and uh 23:50 23 minutes, 50 seconds again they will go for testing in US it took around about one and a half month for testing in US after that they will 23:58 23 minutes, 58 seconds give us order contract is already signed 24:04 24 minutes, 4 seconds okay got it for 500 per got it and only facility Our 24:13 24 minutes, 13 seconds realizations would be close to 10 11 lakhs per metric ton. So what what is this product that we are making and 24:20 24 minutes, 20 seconds so like for a normal aluminium uh extrusions uh our realizations are close to three three and a half lakhs. Uh so 24:28 24 minutes, 28 seconds what what is it that we are making that we will be able to earn 10 11 lakhs per metric t of a realization on this product. 24:36 24 minutes, 36 seconds Yeah. So first of all this project is delayed around about 8 to 9 months 24:43 24 minutes, 43 seconds because of there are two two parts of this project. One is finish one is raw material. Now finish is ready. This is 24:51 24 minutes, 51 seconds under trial. But for the raw material Korean supplier will be delayed for approximately 8 to 9 months which I'm 24:59 24 minutes, 59 seconds going next week to Korea to discuss with this. 25:03 25 minutes, 3 seconds And when I get the raw material then I am able to give the supplies to the customer. Before that I can't give 25:12 25 minutes, 12 seconds because there is no kind of facility in India where we get this raw material. 25:18 25 minutes, 18 seconds So this is something precision tube which is using for the air conditioning condenser tubes. 25:27 25 minutes, 27 seconds So this is the total import 100% in India. This is the first substitute in India. So that project will be delayed 25:35 25 minutes, 35 seconds around about 8 to 9 months because of raw material. 25:42 25 minutes, 42 seconds Got it. And sir uh if you could just help us understand on this difference aerospace and architectural s have we uh 25:49 25 minutes, 49 seconds uh got any customer approvals or will be uh approvals will happen over the next few months and post that we'll start supplylying to these uh customers. 25:59 25 minutes, 59 seconds No no no there are two things one is the vendor of the aerospace they are already trial with us we have already applied 26:07 26 minutes, 7 seconds there are lot of uh compliance with the aerospace lot of audits they are going on 26:16 26 minutes, 16 seconds still there are some uh discrepancy in the audit now we have to clear I think so within a two and a half months we 26:24 26 minutes, 24 seconds will clear this all dispense with the aerospace we We are not much interested in architecture. 26:32 26 minutes, 32 seconds Our main focus is uh aerospace and defense. 26:38 26 minutes, 38 seconds We are not much clean about the architect because as the architect uh there is no margin. 26:46 26 minutes, 46 seconds Right. So what kind of a beta port can we expect from this aerop segment? 26:54 26 minutes, 54 seconds Uh it's round about I can say around about 80 rupees per kg. margins. 27:02 27 minutes, 2 seconds Okay. 27:02 27 minutes, 2 seconds And the consumption for in India is around about two and a half thousand tons per month. And we expect we can get 27:11 27 minutes, 11 seconds around about 150 tons in our share not more than that. 27:20 27 minutes, 20 seconds Got it. And sir, so if I look at our business from a overall basis, sir, what kind of volume do we expect for FI 26, 27:28 27 minutes, 28 seconds 27 and 28 and what kind of AIA port can we expect on a conservative basis? 27:34 27 minutes, 34 seconds Um I can't say for this year because this quarter is not good because of the cancellation of order from US. So this 27:43 27 minutes, 43 seconds quarter is not good and by the next year uh 27:50 27 minutes, 50 seconds next year 28:03 28 minutes, 3 seconds one second 28:11 28 minutes, 11 seconds for 50% $1 per $450 per $450 per Hello. 28:24 28 minutes, 24 seconds Yes sir. Yeah. $450 per ton. 28:29 28 minutes, 29 seconds $450 per time total of the month whether it's a jaw whether it's a plant number two pithapur 28:39 28 minutes, 39 seconds or plant number one all total right what kind of volumes can we expect 28:47 28 minutes, 47 seconds next year I think so we will more than 18,000 tons 28:55 28 minutes, 55 seconds okay 18,000 tons okay sir sir that was from my sir thank you so much and all the Okay, thank you. 29:04 29 minutes, 4 seconds Thank you. A reminder to all the participants, you may press star and one to ask a question. We will take the next 29:12 29 minutes, 12 seconds question from the line of Jani from Noama. Please go ahead. 29:17 29 minutes, 17 seconds Yeah. Hi sir. Uh uh thanks for taking my question. Uh my question was more on the business perspective. So normally when 29:26 29 minutes, 26 seconds we take a contract uh is this contract when you enter into a contract are the 29:33 29 minutes, 33 seconds margined on a per basis percentage margin basis uh and how do we hedge the aluminium price volatility overall in 29:42 29 minutes, 42 seconds the business? Okay. Now we are basically converters. 29:49 29 minutes, 49 seconds We are converters. We take a prime metal and convert the metal. 29:54 29 minutes, 54 seconds Okay. So we will fix the margin in conversion only. 29:59 29 minutes, 59 seconds For example for data for example we have started we are charged around about 75 rupees per kg only for the conversion of the battery. 30:11 30 minutes, 11 seconds Okay. And our cost is around about 45 rupees. So this is our margin. 30:17 30 minutes, 17 seconds Rest whatever the fabrication and other work done by for Tata it is entirely value added 30:25 30 minutes, 25 seconds one part number two the raw metal raw edge 30:32 30 minutes, 32 seconds okay it is back to back okay okay understood and this is 30:41 30 minutes, 41 seconds whether on the MCX or on LM whatever the cheapest understood And this is applicable for 30:48 30 minutes, 48 seconds all contracts 100%. Our total metal is H. 30:55 30 minutes, 55 seconds Okay. And you were mentioning about this US order getting cancelled. Uh can you share the quantum that has impacted uh it's around about 450 tons? 31:07 31 minutes, 7 seconds uh and in revenue terms it could be closer to what uh because in this there's a good revenue around about 200 term is 31:16 31 minutes, 16 seconds fabrication fabrication is our really core and uh hard profit very good profit 31:22 31 minutes, 22 seconds in fabrication in US so I can say we have loed around about 5 to 6 cr rupees 31:30 31 minutes, 30 seconds understood enter uh on uh now was this US trade deal being announced 31:37 31 minutes, 37 seconds uh anyways or on the ground improvement you are seeing on demand. Maybe these orders will come back sometime in Q4 or 31:45 31 minutes, 45 seconds probably next year. Are you seeing some some traction on the ground? 31:50 31 minutes, 50 seconds Now basically this aluminium is under chapter 232. 31:55 31 minutes, 55 seconds They have give only one relaxation right now is only for automobile industry and 32:01 32 minutes, 1 second aeroplane industry. They will not charge duty for automobile. they will charge 18% and for aeroplane there is a zero 32:09 32 minutes, 9 seconds duty for aluminium parts and we are struggling for the solar also 32:17 32 minutes, 17 seconds and uh I hope we will get definitely a good results as soon as solar will start we will definitely get a very good order 32:25 32 minutes, 25 seconds right sir and just last question is on the cape uh so if I see your PPD you have announced close to 190 of kex 32:33 32 minutes, 33 seconds yeah yeah which majority about 70 K is going into DEA uh 21 K I think you 32:41 32 minutes, 41 seconds spending in FI 2650 over the next two years uh so what kind of so DEAS I think uh 32:50 32 minutes, 50 seconds sir already mentioned that you would see a peak turnover of 100 Kores uh what about the rest of the capex how how much 32:57 32 minutes, 57 seconds asset turn can we expect uh out of this remaining 120 or 100 odd kores that you're going to spend across 33:07 33 minutes, 7 seconds Okay. So, plan number three is coming up with the thousand tons of capacity of anodizing and thousand tons of power booting and construction. 33:19 33 minutes, 19 seconds Plus, there is a huge shortage of the land at uh current plant. We are going 33:26 33 minutes, 26 seconds to shift this fabrication unit on the uh floor of anodizing and powder booting in 33:34 33 minutes, 34 seconds two acres. So there is a huge construction over there and there is a huge construction is going on the as 33:41 33 minutes, 41 seconds well as in man also. So this is one construction part and two plants are coming. One is anodizing, one is 33:49 33 minutes, 49 seconds powering and one new press with the induction with the new technology Korean uh 33:58 33 minutes, 58 seconds technology which is the raw material for this unit only. This is something uh 34:05 34 minutes, 5 seconds big. If I take a total and some round about 4 to 5 to rupees is invested in Tata 34:13 34 minutes, 13 seconds for the new machines which they have given the contract for 2 years 34:20 34 minutes, 20 seconds they have given for two years they are supplying to us taking us and sending to us 34:29 34 minutes, 29 seconds and some more machines are coming up for the fabrication like vibrra costic 34:36 34 minutes, 36 seconds they are demanding some more automization we are also working on those lines also so these kind of the 34:43 34 minutes, 43 seconds customer we are taking care whatever the demand they have for the existing unit so this is the total expansion 34:51 34 minutes, 51 seconds approximately 190 code so I was asking how much turnover can we 34:58 34 minutes, 58 seconds expect on utilization from next year next year I I can't say for the trading you know trading is 35:07 35 minutes, 7 seconds opportunity business the last quarter is very low I think so this quarter is going good I hope so 35:15 35 minutes, 15 seconds I can tell you 18,000 35:23 35 minutes, 23 seconds it's around about 500 cr for the manufacturing side 35:29 35 minutes, 29 seconds by next year by next year okay and On peak utilization, this can probably go up another 20 25%. 35:38 35 minutes, 38 seconds Sorry. On peak utilization of your capacity, this will go up by another 20 25%. 35:47 35 minutes, 47 seconds Yes. Yes. 35:49 35 minutes, 49 seconds Okay. Okay. Understood. Later uh I will come back in the queue uh for further question. Thank you. Thank you. 35:58 35 minutes, 58 seconds Thank you. We have the next follow-up question from the line of Jatin Damana from Swan Investments. Please go ahead. 36:05 36 minutes, 5 seconds Thank you sir for the opportunity once again. So just wanted to understand that you indicated that due to the cancellation of the US contract we lost 36:13 36 minutes, 13 seconds near about 450 tons of volume this quarter but how shall we look at that particular contract? I mean have we issued or probably are we discussing in 36:22 36 minutes, 22 seconds that particular customer for the re renegotiation of the contract? 36:27 36 minutes, 27 seconds Yeah, already one of the director 50 is there. Mhm. 36:32 36 minutes, 32 seconds Just one day before because they told us we have shifted the order to the local uh manufacturer. 36:39 36 minutes, 39 seconds Mhm. 36:40 36 minutes, 40 seconds So I hope we will get something not 100%. I hope within two three days it is clear we'll get something. 36:49 36 minutes, 49 seconds And sir if you I mean the as you indicated that we we have lost it to the local suppliers. So if you want to look 36:55 36 minutes, 55 seconds in the US perspective market uh in terms of the pricing uh what will be how will be our pricing differ from the domestic 37:04 37 minutes, 4 seconds supply pricing in the US market I'm not able to understand 37:12 37 minutes, 12 seconds you indicated that we lost that customers due to the supply from the local market right so in terms of the 37:19 37 minutes, 19 seconds pricing how much would we be an expensive or how That's so the difference between R costing R pricing 37:27 37 minutes, 27 seconds and the local supplier pricing in the US market. 37:31 37 minutes, 31 seconds Uh local is higher round about I can say for the anodizing is around about 5 to $600 per ton. 37:40 37 minutes, 40 seconds Mhm. 37:41 37 minutes, 41 seconds And for the oxygen is also 300 to 400 t per ton. I'm talking about C cost.h. 37:50 37 minutes, 50 seconds Yeah. But new one policy came in US. 37:56 37 minutes, 56 seconds If you take this uh American product, you will get the subly of $300 per t. 38:04 38 minutes, 4 seconds Right. They have introduced new policy. 38:11 38 minutes, 11 seconds Okay. Okay sir. That's also my Thank you. Yeah. Thank you. 38:19 38 minutes, 19 seconds Thank you. A reminder to all you may press star and one to ask a question. 38:25 38 minutes, 25 seconds We will take the next follow-up question from the line of Madorati from counter cyclical investments. Please go ahead. 38:33 38 minutes, 33 seconds Sir, thank you for opportunity once again. Sir, I'm just a bit confused. We mentioned last quarter that our margins in exclusion would be 15 to 18%. But s 38:42 38 minutes, 42 seconds when I look at even the like the most the premium anodizing where we are 38:49 38 minutes, 49 seconds earning 15 to 20,000 aa uh per metric terms are um margins are hardly coming less it is 38:58 38 minutes, 58 seconds less than 10 portion when I consider that three three and a half lakh realization per metric term 39:06 39 minutes, 6 seconds yeah you're right you see which our orders cancelled this is not only uh extrusion, 39:15 39 minutes, 15 seconds it's extrusion, powder coating, then fabrication. 39:20 39 minutes, 20 seconds We get the margin in extrusion, we get the margin in anodizing, then we get the margin in fabrication also. So that 39:28 39 minutes, 28 seconds order is very important for us where there is a big difference in this quarter. We have lost this big customer. 39:37 39 minutes, 37 seconds So what is the per per metric then a beta we can expect on the exclusion 39:44 39 minutes, 44 seconds segment extrusion if I say total 39:53 39 minutes, 53 seconds mil then uh I can say around about 30 30,000 40:01 40 minutes, 1 second rupees per ton approximately Okay. 40:08 40 minutes, 8 seconds Extrusion and anodizing. 40:11 40 minutes, 11 seconds Okay. So sir only extrusion would be closer to 10,000 rupees for metric then 10 to 12,000. 40:19 40 minutes, 19 seconds Okay. 10 to 12,000 is only from extrusion and the rest is still that is why we are focusing 40:27 40 minutes, 27 seconds for 1,000 ton anodizing and thousand ton per month powder coating where we can get a value addition and the customer is 40:35 40 minutes, 35 seconds also very happy to take the material from us anodized he will not send anywhere else 40:45 40 minutes, 45 seconds we don't have such capacity Right. But sir, still we will be earning only 10% a beta margins. Uh if I 40:54 40 minutes, 54 seconds consider that in 9 months we did 6,000 metric ton of volumes and we did close to 225 cr of revenue. Uh our margins 41:03 41 minutes, 3 seconds would be less than 10,000. So so is that sir I'm not trying to understand where I'm getting it wrong. 41:12 41 minutes, 12 seconds What what is the question? Just check. 41:15 41 minutes, 15 seconds Yeah. Can you please repeat your question? Yes sir. So last quarter uh I'm I was reading your phone call you mentioned that exclusion margins would be 15 to 18%. 41:27 41 minutes, 27 seconds Okay. Right. 41:28 41 minutes, 28 seconds And sir if I look at a realization of 3 lak 50,000 per metric 10 that we did 41:35 41 minutes, 35 seconds during 9 months from the manufacturing segment. Uh that number should be closer to 4550,000. So I am not I'm I think I'm 41:44 41 minutes, 44 seconds getting somewhere uh uh this good. 41:51 41 minutes, 51 seconds See if that uh order cancelled uh into last quarter. If that order would have been executed then you could see that margins were uh at the same level. 42:06 42 minutes, 6 seconds Right. 42:08 42 minutes, 8 seconds Because what you are seeing uh there is a mix of you know domestic and uh export market basically. 42:19 42 minutes, 19 seconds So export uh or in export orders we have a considerably good margin 42:26 42 minutes, 26 seconds right. Um an what kind of margin can you expect from the precision tubing at bas 42:36 42 minutes, 36 seconds 100 rupees per kg 100 rupees 4 kg. Okay sir. So that was from my end sir. Thank you so much and all the best. 42:45 42 minutes, 45 seconds Thank you. 42:49 42 minutes, 49 seconds Thank you. A reminder to all the participants, you may press star and one to ask a question. 43:02 43 minutes, 2 seconds Participants, you may press star and one to ask a question. 43:09 43 minutes, 9 seconds Thank you very much. Ladies and gentlemen, that was the last question for today. And with that concludes the question and answer session. I now hand 43:17 43 minutes, 17 seconds the conference over to the management for the closing comments. Thank you and over to you, sir. 43:34 43 minutes, 34 seconds Thank you so much. Yeah, please. Please. 43:43 43 minutes, 43 seconds Yeah, I was just saying maybe closing comment from your side. 43:47 43 minutes, 47 seconds So yeah, uh basically man Almonium uh is in the middle of to all the investors to just uh uh stay connected with us. We 43:55 43 minutes, 55 seconds are into the middle of a strategic transformation uh from commodity extrusion to high value aluminium solutions from trading le volumes to 44:03 44 minutes, 3 seconds manufacturing le profitability from basic profiles to aerospace defense automotive and precision applications. 44:10 44 minutes, 10 seconds So FI26 W reflects transition cost. So we have set the platform for long-term growth is firmly in place. So that's all uh from our side. Thank you so much. 44:22 44 minutes, 22 seconds Thank you very much sir. On behalf of Numama Wealth, that concludes this conference. Thank you all for joining us today and you may now disconnect your lines.