Manaksia Coated Metals & Industries Ltd — Q4 FY26

Manaksia Coated Metals & Industries Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=Vpr24kL_ZsA Published: 6 days ago

0:03 3 seconds Ladies and gentlemen, good day and welcome to the Q4 FY26 earnings conference call for Manoxia quoted Metals and Industries Limited hosted by Go India Advisers. 0:14 14 seconds As a reminder, all participant lines will be in the listenonly mode and there will be an opportunity for you to ask questions after the presentation 0:22 22 seconds concludes. Should you need assistance during this conference, please signal an operator by pressing star then zero on your touchstone phone. Please note that 0:31 31 seconds this conference is being recorded. I now hand the conference over to Miss Sana Kapoor from Go India Advisers. Thank you and over to you ma'am. 0:41 41 seconds Thanks Dvin. Good afternoon everyone and welcome to Manakia quoted Metals and Industries Limited earnings call to 0:49 49 seconds discuss Q4 and FI26 financial performance. Today we are joined by Mr. 0:55 55 seconds Karan Agraaltime director, Mr. Mahendra Bang, chief financial officer and Mr. 1:01 1 minute, 1 second Tushar Agraal, senior vice president. We must remind you that the discussion on today's call may include certain 1:08 1 minute, 8 seconds forward-looking statements and must be therefore viewed in conjunction with the risks that the company faces. May I now 1:15 1 minute, 15 seconds request Mr. Karan Agaral to take us through the company's business outlook and financial highlights subsequent to which we will open the floor for Q&A. 1:23 1 minute, 23 seconds Thank you and over to you sir. Thank you Sana. Good afternoon everyone. 1:30 1 minute, 30 seconds A very warm welcome to the Q4 and FY26 earnings call of Manakia quoted Metals and Industries Limited. I am Karan 1:39 1 minute, 39 seconds Agraal, full-time director of the company and I'm delighted to host you today our valued analysts, investors and 1:46 1 minute, 46 seconds stakeholders who have taken the time to join us. 1:50 1 minute, 50 seconds Today we will walk you through our financial and operational performance for the quarter ended 31st March 2026 as 1:58 1 minute, 58 seconds well as for the full financial year FY26. 2:03 2 minutes, 3 seconds Following my opening remarks, we will open the floor for a Q&A session. Our financial results and highlights are 2:10 2 minutes, 10 seconds available on our website www.mmoniaportedmetals.com as well as on the stock exchange portals. 2:20 2 minutes, 20 seconds Before we dive into the numbers, I want to take a moment to set the context for the year that was FY26. 2:28 2 minutes, 28 seconds It was in many respects a year defined by two parallel stories. One of remarkable strategic progress and 2:36 2 minutes, 36 seconds financial strength and one of unprecedented external disruptions that tested our operational resilience. 2:44 2 minutes, 44 seconds The macro environment, particularly the escalating conflict in the Middle East, created significant headwinds across 2:52 2 minutes, 52 seconds global supply chains, logistics, energy markets, and commodity costs. 2:58 2 minutes, 58 seconds Freight rates surged by nearly 100% quarteron quarter. Industrial fuels such as propane and LPG witnessed an 3:07 3 minutes, 7 seconds unprecedented shortage with prices spiking by almost 200% within a fortnight. 3:14 3 minutes, 14 seconds key raw materials and consumables, many of which are petrochemical byproducts, saw cost escalations in the range of 50 to 75%. 3:23 3 minutes, 23 seconds Metal prices, including aluminium and zinc, climbed to 5-year highs. 3:28 3 minutes, 28 seconds Supply of critical inputs was severely disrupted, delaying the execution of high value export orders. 3:37 3 minutes, 37 seconds These are not excuses. They are the reality of global operating environment that every participant in our industry 3:44 3 minutes, 44 seconds had to navigate and I am pleased to say that our company navigated these headwinds with discipline, agility and a 3:52 3 minutes, 52 seconds clear strategic focus. Our full year's numbers bear the testimony to that. Let me begin with the headline. 4:01 4 minutes, 1 second Financial year 2026 has been our strongest year on record across virtually every financial and operating metric. 4:10 4 minutes, 10 seconds Revenue for the full year on a consolidated basis grew by 13.5% year-on-year crossing rupees 896 cr. 4:19 4 minutes, 19 seconds This marks a significant milestone as we move towards the rups 1,000 cr revenue landmark. 4:26 4 minutes, 26 seconds Price realization per ton improved meaningfully to rupees 82,193 4:33 4 minutes, 33 seconds per ton in FY26 compared to rupees 73,622 per ton in FY25 4:41 4 minutes, 41 seconds reflecting our deliberate shift towards higher value added products and better product mix. 4:47 4 minutes, 47 seconds Our EBIDA for the full year stood at rupees 92.21 cr a strong increase of 4:54 4 minutes, 54 seconds 49.21% 21% yearonearida margin for the year expanded by 246 5:00 5 minutes basis points to 10.29% reflecting our improved operational efficiency and product premiumization. 5:09 5 minutes, 9 seconds ITA per ton touched rupees 8,838 per ton growing 43.54% 5:19 5 minutes, 19 seconds yearonear a clear measure of value we are adding per unit of production 5:26 5 minutes, 26 seconds at the bottom line our profit after tax for fi26 grew by an exceptional 164% 5:34 5 minutes, 34 seconds yearonear touching rupees 40.69 69 crat margin expanded by 259 basis points to 4.54% for the full year. 5:47 5 minutes, 47 seconds Our earnings per share registered an increase of 211% yearonear touching rupees 4.32 per share for FI26. 6:00 6 minutes Equally significant is the improvement in our balance sheet strength. Our interest coverage ratio touched 2.5 6:08 6 minutes, 8 seconds 2.85x compared to 1.63x in FI25s. 6:15 6 minutes, 15 seconds The current ratio reached an all-time high of 1.75x improving from 1.35x. 6:23 6 minutes, 23 seconds Our debt equity ratio improved substantially to 1.13 times from a level of 1.81 in FY25. 6:34 6 minutes, 34 seconds Most importantly, we achieved our targeted net debt to IBIDA ratio of 1.01x in FI26. 6:44 6 minutes, 44 seconds A remarkable improvement from 1.93x in FI25. 6:50 6 minutes, 50 seconds This demonstrates that we are not just growing profitably, we are growing with financial discipline and balance sheet rigor. 6:59 6 minutes, 59 seconds I'm pleased to share that our external credit rating was upgraded in FI26. 7:04 7 minutes, 4 seconds Long-term rating was upgraded to A from A minus and short-term rating was upgraded to A1 from A2. 7:14 7 minutes, 14 seconds This upgrade is a recognition by independent credit rating agencies of our strengthened financial position and improved debt management practices. 7:25 7 minutes, 25 seconds Turning to our quarterly performance, Q4 of FI26 was a quarter of strong sequential recovery even as the Middle 7:34 7 minutes, 34 seconds East crisis created headwinds that temporarily weighed on margins. This quarter's performance reflects the 7:41 7 minutes, 41 seconds stabilization phase following the successful commissioning of the Alusen technology upgrade. While steady production and quality have been 7:50 7 minutes, 50 seconds achieved, the capacity utilization is being ramped up in a phased and incremental manner. 7:56 7 minutes, 56 seconds Revenue for Q4 FI26 stood at rupees 228.74 8:03 8 minutes, 3 seconds cr registering a robust 20.45% growth quarteron quarter and a 9% growth year on year. 8:13 8 minutes, 13 seconds IBIDA for Q4 FI26 stood at rupees 15.64 cr with an IBIDA margin of 6.84%. 8:23 8 minutes, 23 seconds The year-on-year softness in Q4 margin was entirely attributable to the 8:30 8 minutes, 30 seconds extraordinary cost escalation in energy and raw materials triggered by the Middle East conflict which compressed margins in the quarter. 8:40 8 minutes, 40 seconds We want to be transparent. 8:42 8 minutes, 42 seconds This was a one-time shock that materially elevated our input costs and it is not reflective of the underlying earnings power of the business. 8:51 8 minutes, 51 seconds The important fact that should be shared with you is that we are successfully able to pass through the entire impact of the incremental costs to our 9:00 9 minutes customers and we have strong visibility of aida earnings for the quarters yet to unfold. 9:08 9 minutes, 8 seconds PAT for Q4 FI26 was rupees 5.37 cr registering a growth of 6.73% yearonear with a pat margin of 2.35%. 9:20 9 minutes, 20 seconds I would now like to invite Mr. Tushar Adrial senior vice president in the company to share insights about operational highlights for the full year 9:29 9 minutes, 29 seconds of FI26 along with important updates on projects and investments in pipeline and future outlook. Thank you very much. 9:39 9 minutes, 39 seconds Over to you Tash. Good afternoon everyone. 9:46 9 minutes, 46 seconds From an operational standpoint, FY26 has been a year of meaningful progress across all dimensions. 9:55 9 minutes, 55 seconds Production of galvanized and alus quoted steel reached 1 lakh 3,036 10:02 10 minutes, 2 seconds metric tons for the full year, registering a growth of 2.21 to 1% yearonear. 10:09 10 minutes, 9 seconds Production of prepainted steel grew by an impressive 12.78% yearonear 10:17 10 minutes, 17 seconds to 83,594 metric tons for FI26. 10:24 10 minutes, 24 seconds Perhaps the most important operational shift in FI26 is the sharp increase in value added product mix. Prepainted 10:32 10 minutes, 32 seconds steel, our high highest value product, now constitutes 80% of total quantity sold in FY26, up from 74% in FY25. 10:44 10 minutes, 44 seconds This is a deliberate and consistent strategy of prei primization and we are pleased with this trajectory. 10:55 10 minutes, 55 seconds On the exports front, FY26 was a watershed year. 11:00 11 minutes Export tonnage touched an all-time high of 66,172 metric tons, growing 110% yearonear 11:11 11 minutes, 11 seconds compared to 31,453 metric ton in FI25. 11:17 11 minutes, 17 seconds The share of exports as a percentage of total revenue grew 68.21% 21% 11:24 11 minutes, 24 seconds to f uh uh sorry uh share of exports as a percentage of total revenue grew to 68.21% 11:33 11 minutes, 33 seconds in FY26 from 39.21% in FY25. 11:40 11 minutes, 40 seconds A growth of 97% yearonear this demonstrates both our global market acceptance and the competitiveness of our product quality. 11:52 11 minutes, 52 seconds I'd like to take you through some of our strategic projects in FY26. 11:58 11 minutes, 58 seconds Um the year has been uh of signific significant strategic investments that 12:06 12 minutes, 6 seconds will shape our growth trajectory for the years ahead. Let me briefly update you on each. 12:15 12 minutes, 15 seconds The first is the alusing quoting technology upgrade. Our most transformative project of the year, the aluminium zinc coating line was commissioned at the end of December 25. 12:28 12 minutes, 28 seconds MCMIL has emerged as one of the few producers in India with 100% aluminium zinc quoting capacity. 12:38 12 minutes, 38 seconds This upgrade increases our capacity from 1 lakh 32,000 metric ton to 1 lakh 80,000 metric t a 36% increase and 12:47 12 minutes, 47 seconds positions us as a premium coated steel segment offering superior corrosion resistance. 12:55 12 minutes, 55 seconds Enhanced surface finish and longer product life. Customer acceptance has been excellent. 13:01 13 minutes, 1 second All long-term customers have appreciated the quality and pledged long strong orders for H1 FI27. 13:10 13 minutes, 10 seconds Importantly, we are able to pass through 100% of the incremental cost to these customers and are seeing strong AIDA per 13:17 13 minutes, 17 seconds metric visibility on all new alusing sales. 13:25 13 minutes, 25 seconds The second color coding line which is the phase 2 expansion. 13:30 13 minutes, 30 seconds We have placed an order with mass rop pro limited for our second color coding line which is an advanc 13:39 13 minutes, 39 seconds which is an advanced stages of erection and commissioning with a targeted completion date of July 26. 13:48 13 minutes, 48 seconds This line will add 150,000 metric tons of color coding capacity, taking our 13:55 13 minutes, 55 seconds total capacity from 86,000 tons to 2 lakh 36,000 tons, a 174% increase. 14:05 14 minutes, 5 seconds This will significantly expand our ability to serve a larger and more diverse customer base and drive higher contribution margins. 14:16 14 minutes, 16 seconds the 7 megawatt solar power plant. 14:20 14 minutes, 20 seconds In line with our commitment to green energy and ESG principles, we have issued a purchase order to proceed green 14:27 14 minutes, 27 seconds energy for a 7 megawatt captive solar power project at in Gujarat. 14:38 14 minutes, 38 seconds This project is also targeted for commissioning by July 26. 14:43 14 minutes, 43 seconds The project will offset 50 to 55% of grid power dependency, significantly reducing our per unit power cost and lowering our carbon footprint. 14:55 14 minutes, 55 seconds All of which contribute to long-term competitiveness and sustainability. 15:04 15 minutes, 4 seconds On our technology and customer management front, we have finalized Salesforce as our preferred CRM platform. 15:14 15 minutes, 14 seconds This will give us 360deree customer visibility, strengthen our sales pipeline management, 15:21 15 minutes, 21 seconds improve demand forecasting, and build stronger databacked customer relationships as we scale our business. 15:32 15 minutes, 32 seconds The outlook for H1 FY27 and beyond. 15:38 15 minutes, 38 seconds Looking ahead, we enter FY27 with strong operate operational momentum, 15:45 15 minutes, 45 seconds improved financial health and significant capacity additions coming on stream. the the ramp up of our 15:54 15 minutes, 54 seconds alusync line, the upcoming commissioning of our second color coding line and the solar power plant are all expected to 16:01 16 minutes, 1 second meaningfully contribute to revenue margins and profitability from H1 FI27 onwards. 16:10 16 minutes, 10 seconds Customer feedback on our new Alusync and prepainted Alusync products has been very encouraging. Order visibility for 16:17 16 minutes, 17 seconds H1 FI27 is strong from both domestic and export markets. 16:22 16 minutes, 22 seconds We expect the demand environment to remain robust and with the normalization of energy and raw material costs 16:30 16 minutes, 30 seconds assuming no further escalation in global conflicts. Our margin recovery in H127 should be meaningful. 16:41 16 minutes, 41 seconds We remain committed to our stated strategy of primization, export growth, capacity expansion and balance sheet deleveraging. 16:51 16 minutes, 51 seconds Every action we have taken in FI26 from alusync upgrade to credit rating improvement to reduction in net debt to 16:59 16 minutes, 59 seconds AIDA is in service of building a stronger more resilient and more profitable MCM. 17:10 17 minutes, 10 seconds In closing, I want to express my sincere gratitude to our board of directors for their guidance and governance, our 17:19 17 minutes, 19 seconds employees and teams at every level of their hard work and commitment, our customers for their trust in MCMIL's 17:26 17 minutes, 26 seconds products and partnerships, and our investors and analysts for our for your continued confidence and support. 17:35 17 minutes, 35 seconds FY26 was a year we can be proud of not just for the numbers but but for what they represent. A company executing on 17:45 17 minutes, 45 seconds its strategy strengthening its fundamentals and investing in its future even in the face of significant global adver adversity. 17:56 17 minutes, 56 seconds We look forward to sharing even stronger results in the quarters ahead. 18:02 18 minutes, 2 seconds With that, let me hand over to the moderator to open the floor for questions. Thank you. 18:08 18 minutes, 8 seconds Thank you very much. We will now begin the question and answer session. 18:12 18 minutes, 12 seconds Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourselves from the question queue, you 18:20 18 minutes, 20 seconds may press star and two. Participants are requested to please use handsets while asking a question. Ladies and gentlemen, we will now wait for a moment while the 18:28 18 minutes, 28 seconds question queue assembles. Once again, let's star and one to ask a question. 18:36 18 minutes, 36 seconds Our first question comes from the line of Jeram Birat from Yes Security Securities. Please go ahead. 18:44 18 minutes, 44 seconds Hello. Uh firstly, congratulations for a great set of numbers and really liked your detailed presentation. 18:52 18 minutes, 52 seconds Couple of questions from my end. 18:53 18 minutes, 53 seconds Firstly, can you please help me with what is the total capeex outlier plan till FI28 and how will it be funded? 19:05 19 minutes, 5 seconds Hi uh good afternoon Mr. Jam. Thank you for your question. Uh well I think the 19:13 19 minutes, 13 seconds project wise capital outlay that we have uh for the current projects in pipeline 19:21 19 minutes, 21 seconds are for the second color coding line which is going to commission in Q2 of FY27 19:28 19 minutes, 28 seconds is roughly about 65 cr rupees and the uh solar captive power plant which is also 19:35 19 minutes, 35 seconds going to commission in the Q2 of FI27 the capital outlay play is rupees 30 cr 19:42 19 minutes, 42 seconds and both these projects have been funded by a healthy mix of uh debt and equity 19:49 19 minutes, 49 seconds where uh the proceeds for from the last fund raise have been used for the 19:56 19 minutes, 56 seconds contribution of equity and um you know debt has been taken from PSU banks in India. 20:05 20 minutes, 5 seconds Okay. uh uh the company is uh aggressively expanding capacity 2 to 3x in across segments. So what gives the 20:14 20 minutes, 14 seconds confidence that demand will keep pace especially in export markets where the 80% of the order book is concentrated. 20:25 20 minutes, 25 seconds So I think what gives us confidence is that we have achieved 80% export rate 20:34 20 minutes, 34 seconds while climbing from lows of 20 25% which was 3 years four years back. So every 20:41 20 minutes, 41 seconds year we have been seeing an incremental growth in our order book in our export numbers in our Q1Q performance where we 20:50 20 minutes, 50 seconds have reached from a level of 20 25% export revenue to today a level where we are touching 70% export revenue and this 21:00 21 minutes has been a very uh you know consistent curve of growth. It has not been erratic. It has not been seasonal. has 21:08 21 minutes, 8 seconds not been one time and this gives us the confidence that the way we are trying to penetrate the market and build long-term 21:18 21 minutes, 18 seconds relations with OEMs in the overseas markets with long-term 21:25 21 minutes, 25 seconds uh obviously with uh we are satisfied we are satisfying their commercial and quality needs and service needs is 21:34 21 minutes, 34 seconds giving us the confidence that we can maintain growth of the export business the rate of growth will definitely not 21:42 21 minutes, 42 seconds be the same where from FY25 to FI26 we have doubled our exports we have grown at 100% year on year the growth rate 21:51 21 minutes, 51 seconds will definitely slow down because it's not practical to expect 100% growth uh each year uh but I can assure you that 21:58 21 minutes, 58 seconds we are quite confident of growth in the uh units of uh you know the the revenue 22:06 22 minutes, 6 seconds that export uh contributes as well as the tonnage of exports that we are achieving. 22:14 22 minutes, 14 seconds Uh okay. And uh like with the shift from galvanized to alo zinc what is the sustainable aida upside and is it driven by pricing power or cost efficiency? 22:29 22 minutes, 29 seconds Uh I think the sustainable level of aida that aloo zinc can contribute to our 22:39 22 minutes, 39 seconds business on a long-term basis would definitely be superior to what we have been earning while selling galvanized 22:47 22 minutes, 47 seconds while producing and selling galvanized and prepainted galvanized. Now the question is how much of a premium? Now 22:54 22 minutes, 54 seconds that can be answered by many aspects that are few are within our control and 23:01 23 minutes, 1 second few are not in our control. The ones that are in our control is our costs, is our efficiencies, is our yield, is our 23:09 23 minutes, 9 seconds capacity utilization and the ones that are not in our control are external factors like geopolitical environment, demand, 23:18 23 minutes, 18 seconds uh competition etc. So I I think it'll be wrong for me to give you know a round 23:25 23 minutes, 25 seconds figure or a number to you. I can only tell you that uh the product per se which is also 23:32 23 minutes, 32 seconds zinc is definitely a product that uh is a more profitable product both in terms 23:40 23 minutes, 40 seconds of costs and price realization. The extent of premium achieved uh or aida 23:47 23 minutes, 47 seconds peran margin achieved is a whole uh you know contribution of many factors internal and external. 23:59 23 minutes, 59 seconds Okay. Okay. And uh last question for Mayan like uh what is the progress on setting up the CRM complex and will the 24:07 24 minutes, 7 seconds capacity make you 100% captive for HRC? 24:15 24 minutes, 15 seconds Okay. So we do have ambitions to do backward integration and set up a cold rolling complex which basically reduces 24:24 24 minutes, 24 seconds our dependability on the current raw material which is cold rolled steel. Um 24:31 24 minutes, 31 seconds it will definitely open our access to many many more flexible options of 24:39 24 minutes, 39 seconds buying raw material from domestic and international sources and it will improve the efficiency of our uh you 24:47 24 minutes, 47 seconds know inventory management and uh raw material flexibility. 24:52 24 minutes, 52 seconds Uh now we have not yet fixed any date to this project. We do want to do this uh 25:01 25 minutes, 1 second within FY28. That is our uh you know that is the blueprint that we have decided upon. Uh we are yet to uh work 25:10 25 minutes, 10 seconds on the nitty-g gritties of financial tieup, supplier selection and the you know all the other uh you know needs of 25:20 25 minutes, 20 seconds the project. So this I can say that we definitely have the ambition to do it and to do it within FI28 and uh I think 25:30 25 minutes, 30 seconds as soon as we complete the projects on hand which is the second color coding line the solar power plant uh this would 25:38 25 minutes, 38 seconds be the next on our list to embark upon. 25:44 25 minutes, 44 seconds Okay. Okay. Thank you so much for your detailed answer. Thank you. All the best. Thank you. 25:51 25 minutes, 51 seconds Thank you ladies and gentlemen to ask a question you may press star and one that is star and one to ask a question. 26:00 26 minutes Our next question comes from the line of Jatinda Mana from Swan Investments. Please go ahead. 26:07 26 minutes, 7 seconds Good afternoon sir. Thank you for the opportunity. So I just wanted to understand your breakup in terms of your 26:14 26 minutes, 14 seconds capex that we are doing. So once we complete our entire capex by FI28, what sorts of potent potential revenue 26:22 26 minutes, 22 seconds one can expect from the facility that we'll be having at the peak utilization? 26:32 26 minutes, 32 seconds Uh good afternoon Zatind. Uh thank you for your question. So if we are talking about uh FY28 I'm assuming that you are 26:41 26 minutes, 41 seconds asking after the uh you know the anticipated projects of cold rolling 26:47 26 minutes, 47 seconds mill and the second allusing climb right uh am I right? Right. Right. 26:54 26 minutes, 54 seconds Yes. So if these projects are actually uh started and completed within FI28, we 27:01 27 minutes, 1 second will have uh installed capacity of 3 lak 60,000 ton uh for cold rolling followed 27:08 27 minutes, 8 seconds by 3A 60,000 ton of alusync followed by 2 lakh 36,000 tons of prepainted alus ink right 27:15 27 minutes, 15 seconds um so we have to assume a certain capacity utilization it cannot be at 100% capacity utilization so assuming 27:24 27 minutes, 24 seconds that a 3 lakh 60,000 ton unit is producing uh you know is having a capacity 27:31 27 minutes, 31 seconds utilization of roughly about let's say 80 85% which is normal in our industry which means production and sale of 27:40 27 minutes, 40 seconds between 3 to 3.2 two lakh uh ton uh which has the potential to generate a 27:48 27 minutes, 48 seconds revenue of anywhere in the range of 2,500 to 2,700 cr peranom. Mhm. Yes. 27:56 27 minutes, 56 seconds Yes. And so when you indicated now probably we'll be starting our green focusing on green power and our 7 megawatt of facility is likely to come 28:05 28 minutes, 5 seconds in FI27. So what sorts of incremental benefit one can estimate from the power saving for the full year? 28:16 28 minutes, 16 seconds Uh the captive solar power plant of 7 megawatt that we are investing in will give us 28:25 28 minutes, 25 seconds access to renewable power which will replace roughly about 50 to 55% of our 28:33 28 minutes, 33 seconds energy dependency on the grid. uh in terms of monetary savings it has the potential to uh to basically generate 28:42 28 minutes, 42 seconds savings of between 7 to 7 and a half cr rupees peranom uh just in terms of power cost. 28:50 28 minutes, 50 seconds So that can be start reflecting from Q2 of financial year 27 right 28:56 28 minutes, 56 seconds the project is currently in a phase where we are expecting it to get comm 29:03 29 minutes, 3 seconds commissioned within Q2. Now it all depends which period of Q2 it actually 29:10 29 minutes, 10 seconds starts uh giving the contribution whether it's the first month, second month or third month of Q2 that is yet 29:16 29 minutes, 16 seconds to be uh you know really I cannot tell you the exact day and date but uh at 29:24 29 minutes, 24 seconds least partial impact will be felt in Q2 and full impact will be felt in Q3 for sure onwards for sure entire seven full 29:33 29 minutes, 33 seconds seven benefits shall reflect in FI28 and probably in FI2 we'll see a part benefit of that. 29:39 29 minutes, 39 seconds Yes, we can see half of the benefit in FI27. Yes. And with the completion of all the project and the revenue of 2,500 29:48 29 minutes, 48 seconds K that you indicated what sorts of ROC you guys are work I mean what sort of ROC one should assume on the company 29:55 29 minutes, 55 seconds level and if you can break up your IR or ROC break up for the GR and the new 30:02 30 minutes, 2 seconds quoting line that will be great great uh Jim the ROC 30:09 30 minutes, 9 seconds that you are asking for FY28 is based on a lot of assumptions and projections 30:16 30 minutes, 16 seconds which are all hypothetical. So I can only tell you that we are aspiring to 30:25 30 minutes, 25 seconds do projects and invest in projects that are having high ROC rates which are you 30:31 30 minutes, 31 seconds know definitely above 20%. uh so I mean for me to tell you what will be the ROC 30:38 30 minutes, 38 seconds of the project is uh you know very difficult at this point of time because we have still not put in the money for 30:45 30 minutes, 45 seconds the project right we are just these are all excel sheet workings at the moment and pro based on projections and numbers 30:52 30 minutes, 52 seconds that are hypothetical therefore I can tell you that any project that the company invests in will definitely be 31:01 31 minutes, 1 second under an assumed targeted ROC of upwards of 20%. Okay. 31:10 31 minutes, 10 seconds Okay. 31:12 31 minutes, 12 seconds Noted. Sorry. Thank you, sir. That's all from my side. Thank you. Thank you, sir. 31:19 31 minutes, 19 seconds Thank you. Participants who wish to ask questions may press star and one. You may press star and one to ask a 31:26 31 minutes, 26 seconds question. Our next question comes from the line of Deep Tanchetti with Mana Finance. Please go ahead. 31:35 31 minutes, 35 seconds Hi, am I audible? Yes, please. 31:40 31 minutes, 40 seconds Yeah. Uh do you expect this re uh elevated cost environment raw material to persist for Q1 and FI27 as well as 31:49 31 minutes, 49 seconds for the going quarters ahead? Uh if yes, then can you quantify the likely impact on margins and ETA per? 31:56 31 minutes, 56 seconds Yeah, good question DJ. Um see as we stand today it is already the second 32:03 32 minutes, 3 seconds month of uh the quarter uh that you are asking the question for and the situation with the geopolitical 32:12 32 minutes, 12 seconds environment and the conflict is known to all. Uh the cost of crude oil, the 32:20 32 minutes, 20 seconds situation of the rupee against the dollar is again known to all and the uh you know the costs of all petroleum 32:29 32 minutes, 29 seconds byproducts uh you know metals like aluminium and zinc remain at an elevated level. 32:36 32 minutes, 36 seconds Therefore I can tell you that the cost structure of inputs of raw materials of consumables etc. 32:45 32 minutes, 45 seconds uh as we speak today remain consistent uh at a high level which we have experienced since the start of the 32:53 32 minutes, 53 seconds conflict. However, the good part is that in the last uh month or so, let's say 33:01 33 minutes, 1 second since uh the beginning of April, uh all the new orders uh and the and the new 33:10 33 minutes, 10 seconds contracts that the company has been entering into with long-term customers both domestic and internationally, we have been able to pass through the 33:18 33 minutes, 18 seconds entire impact of the incremental costs whether it's on the energy side, raw material side, consumable side, uh 33:26 33 minutes, 26 seconds freight side, everything to the customers in the new pricing and the new costing that we're doing. So the impact on the margins will not be negative. 33:38 33 minutes, 38 seconds Rather I would say that we have kept a good buffer in our costings and in our calculations to because the the 33:47 33 minutes, 47 seconds situation is so uh dynamic and unpredictable that we feel that our margin situation should be drastically 33:55 33 minutes, 55 seconds better than what we experienced in Q4 of SI 26. 34:03 34 minutes, 3 seconds Right. And uh with net equit net debt to equity at 1.12 how much leverage increase is expected during the capex 34:11 34 minutes, 11 seconds cycle and do you have any threshold as to how much debt to equity ratio you want to maintain or you want to go at max? 34:21 34 minutes, 21 seconds Well, uh as of now due to the equity fund raise that we did uh last year as 34:28 34 minutes, 28 seconds well as the earnings that the company has enjoyed in FI26, we have been able to take impact of both 34:37 34 minutes, 37 seconds these infusions and earnings into our debt equity ratio for a favorable outcome and we have achieved 1.13 times. 34:47 34 minutes, 47 seconds Um I feel that uh even in the situation of uh having capeex incoming uh in the 34:56 34 minutes, 56 seconds upcoming quarters and the upcoming years, we definitely want to be conservative on the leverage front and 35:03 35 minutes, 3 seconds uh I cannot tell you what will the ratio be going forward but I can definitely 35:10 35 minutes, 10 seconds tell you that the company does not have any plans to go aggressive for leverage. 35:16 35 minutes, 16 seconds age and uh we will definitely not breach a level of 2x uh I mean that is also 35:23 35 minutes, 23 seconds extremely high in my view but we will definitely not breach a level of 2x and we'll strive to actually be anywhere in 35:31 35 minutes, 31 seconds the range of between 1 to 1.5x okay uh just want to understand you know 35:40 35 minutes, 40 seconds how quickly are you able to pass on the cost uh pressures as well as any cost benefit benefits. Now let's say if the 35:47 35 minutes, 47 seconds crude comes down and things you know become normal as they were uh how fast will the cost reductions will take place 35:56 35 minutes, 56 seconds and you know what will be our uh uh will that affect our EIA margins in the 36:03 36 minutes, 3 seconds positive way since there will be a lag in passing on the cost. 36:09 36 minutes, 9 seconds Absolutely. I think uh you know you have rightly said that just like how we faced 36:15 36 minutes, 15 seconds a shock uh when the conflict began where we had to absorb a shock of increased 36:23 36 minutes, 23 seconds costs in Q4 uh after the war started uh you know in late February 36:30 36 minutes, 30 seconds uh in the same manner in case we have to assume a situation where all the costs of energy freights everything starts 36:40 36 minutes, 40 seconds plummeting and going down. We will definitely have a window of opportunity where we will be experiencing 36:48 36 minutes, 48 seconds experiencing a lower cost environment in terms of our production and shipments but we will be enjoying prices that we 36:56 36 minutes, 56 seconds have concluded uh beforehand uh which are of the higher cost uh kind of a 37:02 37 minutes, 2 seconds costly structure but I think overall these are very short-lived periods and windows these are not consistent we 37:10 37 minutes, 10 seconds cannot enjoy enjoy uh arbitrage uh period beyond a month because that is 37:18 37 minutes, 18 seconds not uh sustainable number one and number two it is not fair for the seller or the buyer. So I think these kind of impacts 37:27 37 minutes, 27 seconds in our business are shortlived. uh I would say uh anywhere between 1 month to 37:34 37 minutes, 34 seconds 2 months is the maximum period where one would want to one would need to uh 37:40 37 minutes, 40 seconds absorb any shock or uh you know enjoy the benefits of a lower cost environment 37:46 37 minutes, 46 seconds it would become uh equilibrium post that so max one quarter it'll get affected 37:53 37 minutes, 53 seconds that is what uh I can I mean is it safe to assume I I I think that would be pretty much uh a good way to summarize it. Yes. 38:03 38 minutes, 3 seconds Yeah. And what what uh is the company having any particular target of ROE because we maintained at around 14% 38:11 38 minutes, 11 seconds uh which is uh decent but uh you know if you see the historic ROE has been always lower. So are we able to will we be able 38:20 38 minutes, 20 seconds to maintain this uh ROE going forward also? 38:25 38 minutes, 25 seconds So I think uh when we did raise external capital uh last year uh and we did all 38:32 38 minutes, 32 seconds these investments in the alusine technology upgrade the second color coding line the uh solar power plant 38:40 38 minutes, 40 seconds etc. These were all basically to elevate the roe and rocce which were at a lower 38:48 38 minutes, 48 seconds kind of a level which uh we were not happy with and I think now that the uh 38:57 38 minutes, 57 seconds fund raise is actually being put to use and the revenue generation has started from the start of uh this calendar year 39:04 39 minutes, 4 seconds or let's say um the the true realization or the incremental impact on roe and ROC 39:11 39 minutes, 11 seconds will be felt in FY27 when all these investments are going to start churning revenue and giving contributions to 39:19 39 minutes, 19 seconds their earnings and as far as the percentage is concerned uh you are seeing it at 14% today I think with the 39:27 39 minutes, 27 seconds uh you know contributions of the upcoming projects of the second color quoting line of the solar power plant and the uh better capacity utilization 39:36 39 minutes, 36 seconds of the alujin client I think uh in my view things should rather improve further. 39:44 39 minutes, 44 seconds Okay. And we don't have any further fundraising plans uh as of now, right? 39:49 39 minutes, 49 seconds Since you're not doing any capex, the capeex that we intend to do after 39:57 39 minutes, 57 seconds these projects that are getting commissioned in Q2 of FI27. 40:03 40 minutes, 3 seconds like I said before to one of the uh participants is that uh the backward integration project of the cold rolling 40:11 40 minutes, 11 seconds mill would be the next project that we would like to embark upon. However, it is too early to comment whether we will 40:19 40 minutes, 19 seconds be uh you know wanting to raise any fund from the market or not for this project. 40:25 40 minutes, 25 seconds Right. Thank you so much. Thank you. 40:30 40 minutes, 30 seconds Thank you ladies and gentlemen to ask a question you may press star and one that is star and one to join the question 40:37 40 minutes, 37 seconds queue. Our next question comes from the line of Yash Purbbe with inv research. Please go ahead. 40:46 40 minutes, 46 seconds Audible sir you are not clearly audible. Your volume is very low. If you could please change the mode on your device. 40:55 40 minutes, 55 seconds Uh hello audible right now. 40:57 40 minutes, 57 seconds Yes this is much better. So please go ahead. 41:01 41 minutes, 1 second Thank you for asking 41:12 41 minutes, 12 seconds people. What is the road map to achieve that? 41:15 41 minutes, 15 seconds Uh sorry to interrupt Yash but your line is very bad in clarity. Hello. 41:23 41 minutes, 23 seconds Yes, go ahead. 41:24 41 minutes, 24 seconds Yeah. So I just wanted to ask like what is the road map to achieve the vision of FY29 of 3x growth and what are the key drivers behind that? 41:36 41 minutes, 36 seconds The vision thank you for your question. 41:38 41 minutes, 38 seconds Yes, the vision for our growth uh up to FI29 having uh you know the ambition to 41:46 41 minutes, 46 seconds become 3x in revenue and profitability are mainly driven by our ambitions to 41:54 41 minutes, 54 seconds increase capacity to uh 36 million ton and having backward integration of pole 42:02 42 minutes, 2 seconds rolling as well as horizontal capacity expansion in the alus zinc production uh you capacity. So I think if we are able 42:11 42 minutes, 11 seconds to successfully achieve all these ambitions, we will achieve our vision of having a 3x uh P&L and balance sheet by FI29. 42:22 42 minutes, 22 seconds And sir, what do you think could be the key challenges uh in achieving this challenges in achieving this vision? 42:33 42 minutes, 33 seconds Well, I mean again this would be a very uh theoretical answer but anything to do with government policies, external 42:42 42 minutes, 42 seconds geopolitical conditions, uh GDP of the country, demand of the country, uh public sector and private 42:51 42 minutes, 51 seconds sector projects in the country would all of these would define how much investment is being uh you know done for 42:59 42 minutes, 59 seconds the growth of the country in critical projects in uh you know infrastructure building and uh our ability to fund the 43:09 43 minutes, 9 seconds projects on time and at lower cost. I think all of these factors would be uh quite uh crucial to 43:19 43 minutes, 19 seconds uh determine the success of these investments. 43:22 43 minutes, 22 seconds Okay. Okay. And sir, my last question would be uh what would be the sustainable beta margin for the medium-term and what could be the PK beta margin we can expect going forward 43:31 43 minutes, 31 seconds all your uh projects are live at the moment for FY26 we have achieved 43:40 43 minutes, 40 seconds an IIDA margin of double digits we have crossed 10% in terms of our Aida margins and uh for the foreseeable future with 43:48 43 minutes, 48 seconds the new product with the upgraded technology with the ramp up of exports we feel that an IIDA margin of anywhere 43:56 43 minutes, 56 seconds between 10 to 12% is possible and sustainable. 44:02 44 minutes, 2 seconds Okay. Thank you for Thank you. Thank you. Participants who wish to ask questions you may press star 44:09 44 minutes, 9 seconds and one on your touchtone telephones that is star and one to ask a question. 44:14 44 minutes, 14 seconds Ladies and gentlemen, our next question comes from the line of J Meta with Navar Capital. Please go ahead. 44:22 44 minutes, 22 seconds Hello, thank you for the opportunity. Uh I just wanted to congratulate on a great set of number despite you know uh recent micro changes uh in the global scenario. 44:31 44 minutes, 31 seconds Uh sir I wanted to ask about the alooing line. I I I just want to understand uh whether any new export market is opening 44:39 44 minutes, 39 seconds up for us uh since we are opening this uh value added product. Thank you. 44:46 44 minutes, 46 seconds Thank you for your question. 44:49 44 minutes, 49 seconds I think yeah it's a it's a very relevant question and this is something that we are working on every day. There are several markets in the world that have a 44:57 44 minutes, 57 seconds preference uh for an alus zinc product over a conventional galvanized product. I can 45:05 45 minutes, 5 seconds tell you that in the uh Americas which is North America, South America, Central America, Caribbean all this entire 45:13 45 minutes, 13 seconds region is having a very good uh dominance and preference of alusing product for their preferred as their 45:22 45 minutes, 22 seconds preferred choice of product for roofing, construction, building material uh rather than conventional galvanized 45:29 45 minutes, 29 seconds steel and uh we are working towards developing such markets uh one of them 45:36 45 minutes, 36 seconds like I said is the America's region north and south and central uh and uh of course in our existing markets of 45:46 45 minutes, 46 seconds Europe, Africa, Middle East also with the introduction of Alusync we are able to approach uh you know more quality 45:55 45 minutes, 55 seconds conscious customers who want higher value added product better quality uh higher consistency better life better 46:03 46 minutes, 3 seconds performance uh we are able to make inroads to these customers and uh you know gradually 46:10 46 minutes, 10 seconds increase our uh foothold and market share in such customers who are used to buying aline product rather than 46:18 46 minutes, 18 seconds conventional galvanized product. So definitely it is helping us in growing our uh you know footprint in the export markets. 46:28 46 minutes, 28 seconds So since you mentioned the US market, so from the US market you will get higher uh revenue per ton uh for your products. 46:36 46 minutes, 36 seconds So can you in the on the in the percentage term be able to tell you know how much extra it would be compared to your existing markets? 46:46 46 minutes, 46 seconds I think when I uh what I tried to tell you is the regions of the world which have a preference or a dominance for 46:54 46 minutes, 54 seconds alus our intention is not to immediately approach the US market for our exports. 47:01 47 minutes, 1 second Currently we do not have any exposure to the US market and I think uh it has been a blessing for us that we did not have 47:08 47 minutes, 8 seconds any exposure to US markets because of whatever happened after the Trump administration uh took over. 47:16 47 minutes, 16 seconds uh right now in the Americas region the markets that uh that could be our likely 47:23 47 minutes, 23 seconds uh you know destinations that we want to work on would be South America, Central America uh region and uh it would 47:31 47 minutes, 31 seconds definitely command a slight premium over our existing markets that we're 47:38 47 minutes, 38 seconds exporting to because of the nature of Alusync and because uh you know that particular region already is offering such kind of price levels. 47:48 47 minutes, 48 seconds Uh that's great sir. Thank you so much and all the best. My pleasure. Thank you. 47:54 47 minutes, 54 seconds Thank you. Participants you may press star and one to ask a question. That is star and one to ask a question. Our next 48:02 48 minutes, 2 seconds question is from the line of Disha from Sapphire. Please go ahead. Hello. 48:10 48 minutes, 10 seconds You are honorable. 48:13 48 minutes, 13 seconds Yes. Thank you so much for this. Yeah, thank you so much for this opportunity. 48:17 48 minutes, 17 seconds So firstly on this prepainted steel capacity this additional 1 lakh 50,000 metric tons that'll be coming online by Q2. What will be the uh peak revenue from this at optimal utilization? 48:30 48 minutes, 30 seconds Hi uh thank you for your question. So the new color coding line which is coming of 1 lakh 50,000 t capacity 48:38 48 minutes, 38 seconds uh we feel that um over and above the existing revenue that we're already generating 48:46 48 minutes, 46 seconds with the installed capacities um assuming that you know it would take some time to stabilize the line and achieve u a decent capacity utilization. 48:59 48 minutes, 59 seconds We we feel that um in FY27 we can anticipate anywhere 49:07 49 minutes, 7 seconds between uh let's say anywhere between 300 to 500 49:13 49 minutes, 13 seconds cr in that range of incremental revenue uh from the new capacity being installed. Uh it's it's a big range 49:22 49 minutes, 22 seconds between 300 to 500 cr. is because it's difficult for me to predict the rate of uh increase in capacity utilization. It 49:31 49 minutes, 31 seconds will be a gradual phenomenon and we will definitely aim to do our best. 49:37 49 minutes, 37 seconds Right. Right. And this uh the new alus line that we have currently one lakh 80,000 that is installed we can expect to reach 8085 sort of utilization but in FI27 will that be a fair assumption? 49:50 49 minutes, 50 seconds Absolutely definitely within FI27. uh I cannot tell you at what point in FI27 because uh we are still in very early 49:58 49 minutes, 58 seconds stages of the the new line getting commission. It has just been 3 months. 50:03 50 minutes, 3 seconds So I think uh you know usually such large and complex lines take uh you know 50:10 50 minutes, 10 seconds a fair share of time to stabilize and for the you know the the production team the operations team the quality team to 50:19 50 minutes, 19 seconds get the confidence of ramping up uh the the line speed the production rate etc. 50:25 50 minutes, 25 seconds So I think uh you can you know safe to assume that the second half of the year uh would definitely see a much higher 50:34 50 minutes, 34 seconds rate of capacity utilization as compared to the first half of the year. 50:40 50 minutes, 40 seconds Right. As you mentioned this three lakh you mentioned this three lakh 60,000 the 50:47 50 minutes, 47 seconds total capacity will have a peak revenue of around 2500 to 2700 cr right? 50:54 50 minutes, 54 seconds Uh yes hypothetically yes yeah so if we take say 1100 1200 from 51:00 51 minutes aluen you mentioned 300 500 so anywhere can we look at 300 to 1600 sort of revenues for f7 51:09 51 minutes, 9 seconds I'm sorry I I you were not very clear in the second part of your question yeah so I mentioned uh you me so around 51:18 51 minutes, 18 seconds 1100 to 1200 cr from alus and 300 to 500 from the new color coding time. So, can we uh do revenues of around 1,500 to,600 51:28 51 minutes, 28 seconds CR for FR27? Would that be a fair assessment? 51:34 51 minutes, 34 seconds Look, uh like I said that the new color coding line would be the uh the only 51:42 51 minutes, 42 seconds capacity that would that would give us the incremental revenue in FI27 along with the higher capacity utilization of 51:50 51 minutes, 50 seconds the Alus client. Now these two aspects combined I have already answered your question that one can expect an 51:58 51 minutes, 58 seconds incremental revenue of anywhere between 300 to 500 crores over uh what we have done in FI26. 52:06 52 minutes, 6 seconds Uh I think you can do the math and potentially come to a conclusion on that. Yeah. 52:13 52 minutes, 13 seconds All right. All right. Okay. Okay. That's that's very clear. Okay. Thank you so much. That's it from my side. Thank you very much. 52:22 52 minutes, 22 seconds Thank you participants. You may press star and one to ask a question. We have our next question from the line of Rang Sha with Promesh Wealth Private Limited. 52:31 52 minutes, 31 seconds Please go ahead. Rank Sha, your line has been unmuted. 52:41 52 minutes, 41 seconds You may proceed with your question. 52:53 52 minutes, 53 seconds As there is no response from the current participant, we will proceed to the next question which will be from the line of Samira Mida, an individual investor. 53:02 53 minutes, 2 seconds Please go ahead. 53:06 53 minutes, 6 seconds Uh hello uh good afternoon sir. Am I audible? You are audible ma'am you may proceed. 53:14 53 minutes, 14 seconds Uh sir I have few questions. Uh first one is uh since uh for past two three 53:22 53 minutes, 22 seconds months we we have been seeing this uh global tensions and increased freight costs and everything. So are are our 53:31 53 minutes, 31 seconds existing customers refraining from placing new orders or uh the pipeline is still uh robust? 53:43 53 minutes, 43 seconds Thank you for your question. uh despite the tensions and the uncertain environment in the global markets, we 53:52 53 minutes, 52 seconds are quite proud to be in a situation where we have long-term confidence of 53:58 53 minutes, 58 seconds our customers, our long-term customers and uh we do enjoy a situation where our 54:06 54 minutes, 6 seconds current order book is uh in the range of between 350 to 400 crores. And this is all from largely from export customers. 54:16 54 minutes, 16 seconds So I think it would be wrong to assume that our customers are not inclined to place orders in the current situation. 54:24 54 minutes, 24 seconds rather I would say that in order to build buffer and to you know tide over 54:32 54 minutes, 32 seconds the uncertainty that the current situation has created our long-term customers are rather being cautious and 54:39 54 minutes, 39 seconds ordering more in advance or potentially a little bit of a higher quantity to ensure that their bare minimum 54:48 54 minutes, 48 seconds requirements are met in time and met adequately. So I think that yes there 54:55 54 minutes, 55 seconds are uh benefits and upsides and downsides to this situation. We have 55:02 55 minutes, 2 seconds already seen the downside with the elevated costs and the uh you know freights and energy situation. But now 55:11 55 minutes, 11 seconds we have seen some of the benefits where we are able to enjoy a good order pipeline and at a healthy price realization. 55:22 55 minutes, 22 seconds Okay. So that that was helpful. Um answer another question is how much premium does uh this this uh new product 55:32 55 minutes, 32 seconds alo zinc enjoy as compared to the previous galvanized uh steel. 55:40 55 minutes, 40 seconds Uh the premium of alum zinc over galvanized steel is basically dependent 55:46 55 minutes, 46 seconds on multiple factors such as the uh demand situation in the market uh such 55:53 55 minutes, 53 seconds as the uh you know the the specification of the product that you're talking about whether it's a thinner gauge product a 56:01 56 minutes, 1 second thicker gauge product the gramage of the coating versus the gramage of the coating in galvanized but I think to 56:08 56 minutes, 8 seconds broadly answer your question. As a lay man, I would say it's fair to assume that a premium of between 3 to 5,000 56:16 56 minutes, 16 seconds rupees a ton is uh ballpark that one can say is a fair premium over galvanized steel. 56:25 56 minutes, 25 seconds So this figure that you are mentioning it is the price realization right? Correct. Okay. 56:33 56 minutes, 33 seconds The premium the premium and the price realization. 56:37 56 minutes, 37 seconds Okay. and answer my another question is uh uh I remember that in in your 56:44 56 minutes, 44 seconds previous calls you mentioned that that um our existing customers uh also use 56:51 56 minutes, 51 seconds this uh this new product. So so uh what do you think will our entire capacity 56:58 56 minutes, 58 seconds uh would be used uh to cater our existing customers or we will have to find uh new customers? 57:07 57 minutes, 7 seconds I think ma'am finding new customers and new markets is a constant exercise that 57:14 57 minutes, 14 seconds we keep doing. It does not stop at any point of time. I think there has not been a single quarter in the last four 57:22 57 minutes, 22 seconds or five years where we would have not added a new customer. So I think um then the the the fattest share of the 57:31 57 minutes, 31 seconds business and the revenues comes from regular and long-term customers which would be upwards of 70%. 57:39 57 minutes, 39 seconds But in the balance 25 30% revenue there is a churn of new customers being added and some customers not giving business. 57:50 57 minutes, 50 seconds So that is I think the nature of business and uh what you're happy about is that the lion share of revenue is 57:58 57 minutes, 58 seconds coming from repeat customers and long-term customers. No. Uh sir actually uh I was asking uh regarding since we 58:06 58 minutes, 6 seconds have transitioned to to this new product. So that is why I I was asking that uh our entire capacity 58:14 58 minutes, 14 seconds uh will that be used to serve the existing customers or uh because because uh it is a new product. Now 58:23 58 minutes, 23 seconds I understand your question. I think uh on that front I can tell you that most of our domestic and export customers 58:31 58 minutes, 31 seconds that we had while we were producing galvanized and prepainted galvanized steel uh most of them were already 58:40 58 minutes, 40 seconds having some exposure some small some large to all. Now uh we are fortunate 58:47 58 minutes, 47 seconds that we were able to transition to using query smoothly and uh you know as on 58:53 58 minutes, 53 seconds date we are already using upwards of uh you know 60% 65% capacity utilization on 59:02 59 minutes, 2 seconds the new alent line and most of it is going to existing customers. So the need to add new customers would be only 59:09 59 minutes, 9 seconds proportionate to the uh increase in capacity utilization that we are going to do in future for which yes we will definitely need to add new customers to 59:18 59 minutes, 18 seconds sell that extra amount of tonnage that we are going to produce and I do not see any challenge in achieving that kind of 59:26 59 minutes, 26 seconds uh new customer growth or penetration in the export markets and domestic market. 59:31 59 minutes, 31 seconds there is enough opportunity and market to cater to. 59:37 59 minutes, 37 seconds All right sir, thank you for the insightful answers and wish you all the best. My pleasure. Thank you. 59:45 59 minutes, 45 seconds Thank you. We have no further questions ladies and gentlemen. I would now like to hand the conference over to the management for closing comments. Over to you. 59:58 59 minutes, 58 seconds Um, thank you very much. uh to the analysts to the investors and stakeholders who have joined the call 1:00:05 1 hour, 5 seconds and given their precious time to hear us out. I want to express uh my sincere gratitude to the board of directors to 1:00:13 1 hour, 13 seconds our employees and the teams that are working very hard uh and giving all their c commitment and energy to achieve 1:00:21 1 hour, 21 seconds organizational goals. I want to thank our customers for their trust in our products and um you know I want to thank 1:00:30 1 hour, 30 seconds our investors and analysts for the continued confidence and support. 1:00:34 1 hour, 34 seconds Um we look forward to interacting with all of you regularly and uh also to welcome you in our next earnings call very soon. Thank you very much. 1:00:46 1 hour, 46 seconds Thank you. On behalf of Go India Advisors that concludes this conference. 1:00:51 1 hour, 51 seconds Thank you all for joining us. You may now disconnect your lines.