Monolithisch India Ltd — Q4 FY26

Monolithisch India Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=ZiWzWThDisg Published: 9 days ago

0:01 1 second Ladies and gentlemen, good day and welcome to Monolith India Limited Q4 FI26 running call hosted by Go India 0:10 10 seconds Advisers LLP. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions 0:18 18 seconds after the presentation concludes. Should you need assistance during the conference call, please signal an 0:25 25 seconds operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. I now 0:34 34 seconds hand over the conference to Mrs. Sana to Miss Tana from Goi Advisor LLC. Thank you and over to you ma'am. 0:42 42 seconds Thank you RA. Good afternoon everyone and welcome to the earnings conference call of Monolithic India Limited to 0:49 49 seconds discuss the Q4 and FI26 results. We have on the call with us from the management Mr. Prabhad Tikal chairman wholetime 0:58 58 seconds director and CFO, Mr. Harsh Teal, managing director and Mr. Kitesh Tikal, 1:05 1 minute, 5 seconds executive director. We must remind you that the discussion on today's call may include certain forward-looking statements and must be therefore viewed 1:14 1 minute, 14 seconds in conjunction with the risks that the company faces. May I now request Mr. 1:19 1 minute, 19 seconds Hushrial to take us through the company's business outlook and financial highlights subsequent to which we will open the floor for Q&A. Thank you and over to you sir. 1:30 1 minute, 30 seconds Thank you SA. Good afternoon everyone and a very warm welcome to all participants joining us today. We are delighted to have you with us and 1:38 1 minute, 38 seconds appreciate you taking the time to be here. The financial results, press release and investor presentation have been uploaded to the exchange and our 1:47 1 minute, 47 seconds website. Hope you had the opportunity to review them. I'm pleased to share that despite ongoing macroeconomic headwinds, 1:55 1 minute, 55 seconds your company delivered an outstanding performance closing FY26 on a strong note with a record- setting quarter in 2:02 2 minutes, 2 seconds both revenue and profitability. FI26 has been a landmark year for us with the company achieving its highest ever 2:09 2 minutes, 9 seconds annual volume handled revenue aida and PAT driven by strong volume growth resilient customer demand and improved 2:17 2 minutes, 17 seconds operational efficiency from financial year 23 through FI26 the company has delivered a strong CGR of 2:26 2 minutes, 26 seconds 48% in revenue 68% in AITA and 72% in fact we are always trying to meet our 2:33 2 minutes, 33 seconds stated guidance reinforcing our consistent execution and growth trajectory with maximum transparency. 2:42 2 minutes, 42 seconds Just to briefly outline our business model established in 2018 as part of the mineral group monolith India is a leading manufacturer of primix running 2:51 2 minutes, 51 seconds for the secondary steel industry. As an early mover, we have driven the shift from non-primix to primix solutions offering benefits such as longer lining 2:59 2 minutes, 59 seconds life, better energy efficiency and improved cost economics and lesser requirement of labor. The key elements 3:06 3 minutes, 6 seconds are growth, margin, stability and value creation for the stakeholder. We serve a wide base of integrated steel plant 3:14 3 minutes, 14 seconds across India supported by a strategically located circularity in India in eastern India with strong alignment 3:22 3 minutes, 22 seconds to India's infrastructure led steel demand we are expanding capacity and entering adjacent silica based segments 3:30 3 minutes, 30 seconds positioning ourselves forward for sustained growth and stable margin. We are also confident of 3:37 3 minutes, 37 seconds becoming the largest manufacturer of map by late Q1 FY27 to early Q2 FY27. 3:45 3 minutes, 45 seconds Before we delve into the financials, let me briefly highlight the key strategic developments and business upgrades for Q4 and FY26. 3:55 3 minutes, 55 seconds On the capacity expansion front, Monarch India is executing a major green field project that will enhance capacity by 4:03 4 minutes, 3 seconds end of Q FY27 or early Q2 FY27 backed by automation integration and 4:11 4 minutes, 11 seconds renewable energy. This expansion is expected to position the company as the largest mark manufacturer globally. 4:19 4 minutes, 19 seconds The new facility in West Bengal strengthens our pos presence in high demand disting cluster and is strategically aimed at capturing growing 4:27 4 minutes, 27 seconds demand while supporting long-term growth. In addition to the above, I'm pleased to share that the company is further expanding land at the Greenfield 4:37 4 minutes, 37 seconds campus and has identified new project opportunities aligned with our core products including high value silica based offerings. These initiatives will 4:45 4 minutes, 45 seconds be taken up following the successful completion of the ongoing green field project. As you are aware, we have commissioned the brownfield project by 4:53 4 minutes, 53 seconds replacing the existing production line with minimum capital outlay and limited downtime. Ongoing efforts to improve the 5:00 5 minutes efficiency of the newly established line have led to a reduction in consumables and labor cost in Q4 FY26. The capacity 5:08 5 minutes, 8 seconds utilization stood approximately 81.5% and we tend to optimize further and further in FY27. 5:17 5 minutes, 17 seconds The capacity expansion at Millinda Global, our holon subsidiary has been completed and the plant is ready to operate at an enhanced capacity of 5:25 5 minutes, 25 seconds 72,000 tons metric t perm up 25% from the current 57600 mtpa with statuto 5:33 5 minutes, 33 seconds approvals expected within the next 15 days. Of the total capex allocation of 5:40 5 minutes, 40 seconds rupees 47.90 crores from IPO proceeds 24.16 crores had already been deployed with the balance of 23.7 cr to be 5:49 5 minutes, 49 seconds utilized in a phase manner through Q1 FY27 launched last year Limited has witnessed 5:56 5 minutes, 56 seconds strong initial traction and an encouraging customer response reinforcing its positioning as a next generation premium offering. The company 6:05 6 minutes, 5 seconds expects over 60% customer migration from AGB7 starting Q1 driven by superior product performance and reliability 6:14 6 minutes, 14 seconds with a 15 to 20% improvement in lifespan and a differentiated minimum heat assurance scheme of 52 to 55 hours. The 6:22 6 minutes, 22 seconds pro product sets a new benchmark in the running mark industry. Its unique warranty back proposition first of its 6:29 6 minutes, 29 seconds kind in the segment has garnered significant customer interest and trust. 6:34 6 minutes, 34 seconds Strategically positioned as an upgrade within the existing customer base, HG Limited is expected to drive better realizations and support margin 6:42 6 minutes, 42 seconds expansions backed by higher performance translating into central and stronger pricing power and sustainable value 6:49 6 minutes, 49 seconds creation wherein not hitting the customer pocket and improving their efficiency as well. 6:56 6 minutes, 56 seconds I'm happy to share that Mona Singha Limited has been recognized as one of Bat's best building brands to 2026 by 7:05 7 minutes, 5 seconds ETH. This recognization underscores our strong growth trajectory, scalable business model and leadership position 7:13 7 minutes, 13 seconds in the market. It further reflects our continued focus on excellence, innovation and sustainable growth while 7:21 7 minutes, 21 seconds reinforcing our expanding contribution to India's industrial development. 7:26 7 minutes, 26 seconds For FY27, we remain optimistic and are targeting revenue of rupees 250 to 300 crores with the VITA margins in the 7:34 7 minutes, 34 seconds range of 22 to 25% supported by strong scale up by addition of metallergic and 7:40 7 minutes, 40 seconds an improving product mix led by HGB limited with total growth capacity 7:46 7 minutes, 46 seconds expected to reach 5.74 lakh MTPA. The business is well positioned to benefit from its strong presence in eastern 7:55 7 minutes, 55 seconds India. High concentration IF steel belt, the commissioning of one of India's largest drumming m facilities and 8:02 8 minutes, 2 seconds continued leadership through advanced product offerings with industry-leading performance benchmarks backed by almost 8:10 8 minutes, 10 seconds depth free balance sheet, healthy return ratios and stakeholder support. We are confident of sustaining growth momentum 8:18 8 minutes, 18 seconds while driving operational efficiency and value creation. I will now hand over the call to Mr. Krishal 8:25 8 minutes, 25 seconds who will take you through the company's financial per performance. Over to you Kesh. 8:33 8 minutes, 33 seconds Thank you. Coming to the quarterly consolidated for financial performance, QOR FI26 was our strongest quarter to 8:41 8 minutes, 41 seconds date with revenue and back up by 25% 75% and 81% to rupees 41 crores, 11 crores 8:50 8 minutes, 50 seconds and rupees 8 crores respectively on a year-on-year basis supported by higher volumes sustained customer demand 8:58 8 minutes, 58 seconds improved operational efficiency and consolidated and consolidation of our group operations. 9:04 9 minutes, 4 seconds Profitability continues to strengthen with record high margins with IITA margins expanding to 28.1% and P margins improving to 19.9%. 9:14 9 minutes, 14 seconds This performance was driven by the enhanced contribution from SGB limited product portfolio and further supported 9:21 9 minutes, 21 seconds by improved operational efficiencies and effective inventory management. 9:26 9 minutes, 26 seconds Coming to FY26 consolidated financial performance the average consolidated available capacity in FY26 stood at 2 9:35 9 minutes, 35 seconds lakh 10,000 metric t with capacity utilization at a staggering 81.5%. 9:42 9 minutes, 42 seconds reflecting strong demand and efficient capacity utilization consolidated revenues to rupees 125 crores registing 9:50 9 minutes, 50 seconds registering a strong 39% year-on-year growth IITA up 52% yearonear to rupees 9:57 9 minutes, 57 seconds 32 crores and ITA margin stood strong and steady at 23.63 63 10:05 10 minutes, 5 seconds profitability remained robust with back by 60% year-on-year to rupees 23 crores 10:10 10 minutes, 10 seconds rce with for financial 26 at 46% with almost death-free balance sheet the net 10:18 10 minutes, 18 seconds cash from operating activities also increased 3.4 four times to rupees 14 crores approximately compared to rupees 10:25 10 minutes, 25 seconds 4 crores in financial year 25. Overall this record-breaking performance was driven by the successful completion of 10:33 10 minutes, 33 seconds brownfield expansion acquisition of mineral India global private limited improved operational efficiency and a 10:40 10 minutes, 40 seconds strong customer response. To this we also would like to credit the our premium product SGB limited for 10:47 10 minutes, 47 seconds collectively enhancing scale efficiency and profitability. In conclusion, the company enters FY27 with a very strong 10:56 10 minutes, 56 seconds momentum with Q1 revenue guidance of rupes 52 to 55 crores and a fullear target of 250 to 300 crores with IITA 11:06 11 minutes, 6 seconds margins in the range of 22 to 25%. This outlook is supported by ongoing capacity expansion, volume growth, healthy 11:14 11 minutes, 14 seconds customer demand and continued improvement in the operational efficiency driven by disciplined education. Backed by a robust financial 11:22 11 minutes, 22 seconds bank balance sheet and a food and capital management, we remain confident in delivering on our growth objectives 11:30 11 minutes, 30 seconds while continuing to scale operations, enhance profitability, and create a long-term value for all our stakeholders. With that, I will now open the floor for questions and answers. 11:41 11 minutes, 41 seconds Over to you, moderator. 11:44 11 minutes, 44 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 11:52 11 minutes, 52 seconds star N1 on your touchstone telephone. If you wish to remove yourself from the question cube, you may press star N2. 12:01 12 minutes, 1 second Participants are requested to use handsets while asking a question. 12:05 12 minutes, 5 seconds Ladies and gentlemen, we will wait for a moment while the question Q assembles. 12:28 12 minutes, 28 seconds The first question is from the line of Krish Kasi from Inward Research. Please go ahead. 12:36 12 minutes, 36 seconds Hello sir, good afternoon. Can you hear me? 12:38 12 minutes, 38 seconds Yes sir, I can hear you. Very good afternoon. 12:41 12 minutes, 41 seconds Very good afternoon sir. So uh tell us about the land which you have bought for the green green field campus. Uh how 12:49 12 minutes, 49 seconds much acres and how much is the cost of that land? 12:53 12 minutes, 53 seconds The land is approximately uh right now what we have purchased is around 50 lakh rupees to 80 lakh rupees. uh this is 13:02 13 minutes, 2 seconds basically so the land the initial land which was there uh with the RS 13:08 13 minutes, 8 seconds refractory was around 13 uh.5 acres and now we are trying to increase it and 13:16 13 minutes, 16 seconds reach around 17 to 18 acres the land cost there is around say 30 to 40 lakh rupees per acre so we plan to invest 2 13:26 13 minutes, 26 seconds to three crores in uh land and make it a 18 to 20 acre campus Okay, great. 13:37 13 minutes, 37 seconds Uh sir, you are entering into these high value products uh silica products in this green field. So what is the 13:46 13 minutes, 46 seconds expected uh you know realization or let's say bida margins on these products? What is the peak revenue potential from from these products also? 13:55 13 minutes, 55 seconds Then let uh the idea is that we'll try to give more detail on this in the AGM. 14:02 14 minutes, 2 seconds So right now once we define what products we are getting into then we'll be able to disclose this further. At 14:09 14 minutes, 9 seconds moment the plan is very simple s we are not trying to tell that we are going to uh you know immediately set up a plant 14:18 14 minutes, 18 seconds and do things. The idea is that we have a campus where a lot of silica handling is going to happen. We are trying to 14:26 14 minutes, 26 seconds expand the campus and we are going to finish the green field project. Once the green field project is finished after 14:33 14 minutes, 33 seconds that we are going to we have identified three four segments where uh you know our earlier expertise can be helpful. So 14:42 14 minutes, 42 seconds in uh in those three four uh segments we are going to opt for one and then go ahead but but when we are going ahead uh 14:51 14 minutes, 51 seconds this the entire thing will be clear to you when we are doing our AGM. 14:58 14 minutes, 58 seconds Okay sir, looking forward. Uh sir, my next question is around SGB limited. 15:02 15 minutes, 2 seconds What is the expected revenue contribution from SGB limited alone in FY uh 26 and maybe if you can tell some 15:10 15 minutes, 10 seconds guidance on 27 FY 26 we switched around 15:16 15 minutes, 16 seconds 18 to 20% customers. However, we the premium we took from around uh 12% 15:23 15 minutes, 23 seconds customers only the 78% uh customers were going on trial. So the you have to understand how uh you know our product 15:32 15 minutes, 32 seconds cycle works. What happens is we are already supplying to someone right. So when we or try to offer a better product 15:39 15 minutes, 39 seconds they try to tell us that okay for initial 15 days 20 days let's run a campaign if your campaign is successful 15:47 15 minutes, 47 seconds after that you know we are going to convert from you or from the other vendor from wherever we are taking. So we have been able to convert around 10 15:56 15 minutes, 56 seconds to 12% in the quarter 4 and since the trials were going on and we have uh 16:04 16 minutes, 4 seconds garnered good interest from the customers we hope that in Q1 we are quoting 60% but I think it should be beyond that. 16:13 16 minutes, 13 seconds You're saying 60% of total sales can come from HGB market. 16:18 16 minutes, 18 seconds Yes sir. That is the plan. That is the plan sir. 16:24 16 minutes, 24 seconds Understood sir. Understood. Sir, last question on Mineral India Global. Uh what is the expected utilization level 16:32 16 minutes, 32 seconds currently and in FY27 uh post you know approval uh which we receive 16:39 16 minutes, 39 seconds at present. So what happened if you talk about mineral India in the last uh 12 months we took uh major shutdowns in the 16:48 16 minutes, 48 seconds H1 and uh you know uh we have almost finished everything done everything now we've got the approvals mineral India 16:57 16 minutes, 57 seconds should run and have a run rate of 90 to 95% efficiency because uh you know the 17:03 17 minutes, 3 seconds things are pretty much set here and uh there is uh no doubt about that it should run below 90 to 95% efficiency. 17:15 17 minutes, 15 seconds So what is the expected revenue from mineral India in FY27? 17:20 17 minutes, 20 seconds So the uh revenue that you could expect is somewhere around 55 to 60 cr rupes 17:27 17 minutes, 27 seconds from mineral India and will that have a significantly different margin structure from HGB HB limited? 17:36 17 minutes, 36 seconds No sir, the company uh tries to offer the same products everywhere but you know middle India has been catering to a 17:45 17 minutes, 45 seconds different uh side of the furnaces uh compared to uh monolith. So maybe you 17:54 17 minutes, 54 seconds know slight difference but of course limited is going to be a part of the pan group and not monish itself. But the 18:02 18 minutes, 2 seconds only difference that lays down here is that middle India does not have the extra edge on the SGB limited that uh 18:11 18 minutes, 11 seconds monfish has due to the new advanced machinery. So maybe it wouldn't be able to perform the same but 5 10% less I 18:19 18 minutes, 19 seconds think we should be fine in uh in those grounds over here sir 18:26 18 minutes, 26 seconds like I told you like I like I told you that AGB limited contribution for monolith is going to be 60% you can 18:34 18 minutes, 34 seconds expect uh contribution in middle India to be around 30 to 40%. If that is that is what you know you're trying to identify here. 18:45 18 minutes, 45 seconds No understood. Which means your entire current thing will shift to LGB is what the expectation is. 18:51 18 minutes, 51 seconds Sir, we are LGBT trip 7 was the best product that the company had to offer. 18:56 18 minutes, 56 seconds We are trying our best to offer the same uh you know standard of quality 19:04 19 minutes, 4 seconds expectations uh and better performance in HGB limited. So yes we are trying and we 19:11 19 minutes, 11 seconds have got very very good results. uh our uh industry is such that we cannot post orders because then you know there is 19:19 19 minutes, 19 seconds lot of uh pricing competition that comes into play otherwise we would have definitely published some good uh order 19:28 19 minutes, 28 seconds numbers that we we have in hand at present. 19:34 19 minutes, 34 seconds Great sir great thank you so much for patiently answering all the questions. Thank you so much sir. Thank you sir. Have a good day. 19:42 19 minutes, 42 seconds Thank you. Before we take the next question, a reminder to all the participants, if you wish to ask a question, please press star and one. The 19:52 19 minutes, 52 seconds next question is from the line of Saraj Ma from Perpetual Capital Advisers. Please go ahead. 19:59 19 minutes, 59 seconds Hello. 20:02 20 minutes, 2 seconds And hello. Yes. Good afternoon. 20:06 20 minutes, 6 seconds Good afternoon. Uh thank you for the opportunity and congratulations on a good set of numbers. Uh my first thank you so much sir our realization are normally in the 20:14 20 minutes, 14 seconds range of 8 rupees per kilo but this quart dropped to around I think 6.7 rupees per kilo round. So what was the reason for this drop in realization? 20:23 20 minutes, 23 seconds Sir, I did not understand what realization uh a realization I think for our products is around 8 rupees per kilo but 20:31 20 minutes, 31 seconds I think this quarter it dropped around 6.7 rupees per kilo. So what was the reason for this drop in realization this quarter? 20:39 20 minutes, 39 seconds No sir, there is no uh drop in realization. The realization remains the average pricing of the product was last 20:48 20 minutes, 48 seconds year around 7.6 rupees. Now it is around 8.1 rupees. What you might be seeing is that we have catered to some non-primix 20:57 20 minutes, 57 seconds that is without the additives customers as well. So when we are talking about the without mix customers 1,800 16 to 21:05 21 minutes, 5 seconds 1,800 rupees of the additive cost goes down and that is why their rate remains uh on the side of 6,500 rupees maybe uh 21:15 21 minutes, 15 seconds that is the way you are calculating it but the average yes yes but the average uh realization of the 21:24 21 minutes, 24 seconds product has gone up by around 400 rupees in the uh last Q4 uh and overall if you 21:32 21 minutes, 32 seconds see uh y basis it's around up by around 300 rupees right so I just did uh the revenue for 21:40 21 minutes, 40 seconds this quarter divided by the uh volume that you've given and I removed the volume you had given for the first three quarters so the realization came down to 21:48 21 minutes, 48 seconds around 6.7 rupees no sir in that volume you might not be taking uh the bifurcation of the non-premixed product that I would uh if 21:56 21 minutes, 56 seconds you drop me an email I would be able to help you in Okay. That is what non-mix uh that is not premix you're saying? 22:04 22 minutes, 4 seconds Yes. Yes. That is SLM 980 in the product portfolio. Okay. Yes sir. Got it. 22:12 22 minutes, 12 seconds And uh so just to just to make you just to make you understand HGB limited is a 22:19 22 minutes, 19 seconds category of uh the best premium offering. HB limited can have two varieties. AGB limited can be of uh the 22:28 22 minutes, 28 seconds pre primit and the non-primage based both. Okay. 22:34 22 minutes, 34 seconds You're saying limited premix and non-primix both. You're saying yes in the limited category because okay 22:42 22 minutes, 42 seconds uh the basic idea is that it has a different set of stone involved in it. 22:47 22 minutes, 47 seconds It has a different set of uh machine involved in it. So the overall uh differentiation it's just not HGB triple 22:55 22 minutes, 55 seconds file and HGB limited. HGB limited as mentioned in the uh when we launched the product HGB limited is a grade where we 23:04 23 minutes, 4 seconds can do premix of boric acid premix of boron and non primix all the three. 23:12 23 minutes, 12 seconds Okay. And and uh in terms of we delivered a handsome revenue growth this quarter but 23:20 23 minutes, 20 seconds our costs were more or less flat year on year and have dropped quarter on quarter. So what is this reason for this drop in uh cost and is this sustainable 23:30 23 minutes, 30 seconds sir? Uh the cost has not dropped the there are two kinds of uh material that comes in one is on the FO basis and one 23:38 23 minutes, 38 seconds is on the XPL basis. So what comes in FO basis in Q3 has not come in Q4 that has 23:46 23 minutes, 46 seconds gone in the indirect expense side because when the freight is turbulent when the transporter feels that maybe 23:53 23 minutes, 53 seconds you know uh there could be a price hike on the diesel side or there might be a price differentiation we try to bifurcate it so that we keep the 24:02 24 minutes, 2 seconds transportation cost in our hands. So that is one thing. The second thing what you said can you repeat again? 24:10 24 minutes, 10 seconds Um I I was asking is this so I got it but uh so it will vary quarter to quarter but you will it will remain in the range 24:18 24 minutes, 18 seconds of it it it will not vary it will not vary quarter to quarter sir either you will find it in the indirect expenses or 24:25 24 minutes, 25 seconds you'll find find it in the uh cgs. So the only thing which is varying is that 24:32 24 minutes, 32 seconds the stone landed price ranges between 2500 to 3,200. 24:38 24 minutes, 38 seconds So either it could be X plant when we do X plant we minus the FR when we don't then we add it up on the bottom line bottom side. 24:48 24 minutes, 48 seconds Uh okay in other expenses. Yes. 24:51 24 minutes, 51 seconds Right. Got it. And boron oxide and boric acid what percent is the comprise of cogs and what is the role in the process of raming mass? 25:01 25 minutes, 1 second uh sir boron oxide uh and boric acid boric acid roughly constitute around 25:07 25 minutes, 7 seconds 1,500 to 2,000 rupees per metric t cost and what the second question that you asked 25:16 25 minutes, 16 seconds what process what role do you play in the process of ramming mass so are they a binder or 25:23 25 minutes, 23 seconds yes it is a binder so what happens is reframing mass is a unshaped refractory 25:30 25 minutes, 30 seconds okay it does not have uh any shape. So what is done is in the induction furnace 25:37 25 minutes, 37 seconds it has been hammered then a uh pharma has been put and this is the binding agent it acts as a binding agent s 25:47 25 minutes, 47 seconds got it and uh in terms of mineral global and followup uh you said that mineral global has a different set of products so what 25:55 25 minutes, 55 seconds uh different set of products are there in mineral India and uh what is the realization and margin of those products 26:02 26 minutes, 2 seconds that mineral India is dealing with more of smaller furnaces and furnaces in the range of 15 metric tons. So the margins 26:11 26 minutes, 11 seconds there are going to switch now because after the installation of the new machinery we are going to cater to the 26:18 26 minutes, 18 seconds bigger furnaces more and that is why the realization is going to almost be at par 26:26 26 minutes, 26 seconds to mono. Of course you know monoix is doing uh is manufacturing in a very bigger scale. So the indirect expenses 26:34 26 minutes, 34 seconds get divided by a bigger metric number but that is not the case when it comes to mineral India. So maybe one you could 26:42 26 minutes, 42 seconds you could understand that in future in the coming quarters you could see one or one and a half% difference in uh the 26:51 26 minutes, 51 seconds profitability of mineral India and monetics. Okay. Yes. 27:00 27 minutes other expenses. Why uh shouldn't it grow in line with revenue uh growth? How do you see other expenses for going forward? 27:09 27 minutes, 9 seconds Because other expenses are other expenses. My bad expenses do not grow with the number of tons that I manufacture. My staff does not increase with the number of tons I manufacture. 27:20 27 minutes, 20 seconds So it is going to be stable. If I have 20 number of people now I I might have 22 number of people and I won't be manufacturing the same set of crumbles. 27:30 27 minutes, 30 seconds So uh it is not going to impact us in that way. Our indirect expense the only 27:37 27 minutes, 37 seconds thing that comes into play whether the transportation cost is added in the raw material side or whether it is not 27:44 27 minutes, 44 seconds added. That is the major thing which plays out there. 27:48 27 minutes, 48 seconds Right. If transportation costs are right, they're going to grow in line with revenue. Yes. 27:56 27 minutes, 56 seconds Okay. Okay. Thank you. I'll join back in. Thank you. Thank you so much. 28:02 28 minutes, 2 seconds Thank you. Participants, you may please press star and one to ask a question. 28:08 28 minutes, 8 seconds The next question is from the line of Kasha from Eco Quantum Solutions. Please go ahead. 28:15 28 minutes, 15 seconds Thank you for the opportunity. Um can you tell me what's what is the peak revenue you can do at this current capacity of five lakh 76,000? 28:25 28 minutes, 25 seconds Good afternoon sir I could not hear you. Please can you please repeat yourself? After am I audible now? 28:31 28 minutes, 31 seconds Yes sir you are audible now at your capacity of 5 lak 76,000. 28:38 28 minutes, 38 seconds Uh yes what is the peak revenue you can do? So the peak revenue that we could do is around 450 to 500 crores. 28:47 28 minutes, 47 seconds And why when do you expect to achieve that? 28:50 28 minutes, 50 seconds Sir that is at present uh you know uh going to go into the next FY when it 28:58 28 minutes, 58 seconds comes to the complete utilization because we have to understand that right now it is the in the rainy season the 29:06 29 minutes, 6 seconds plant is going to start. So we are not expecting that uh the production will ramp up immediately. So at this current 29:14 29 minutes, 14 seconds quarter what we are expecting is at this current FY what we are expecting is you know somewhere uh 200 to 225 cr rupees 29:24 29 minutes, 24 seconds will come from the existing capability that we have and another 25 to 50 cr rupees capacity will add up from the metlogical side uh in the full year. 29:36 29 minutes, 36 seconds Maybe it could be larger than that but as it is a green field project and we are going to you know start things 29:44 29 minutes, 44 seconds moving forward so we are being conventional on those lines. If I if I would have answered what you wanted to ask. 29:52 29 minutes, 52 seconds Yes. So but in FI28 what is the revenue you can do? Like you said in FI27 you'll do 250 to 300. In FI28 what can we assume? 30:02 30 minutes, 2 seconds Sir in general we tend to operate the plant at 85 to 90% capacity. So 30:10 30 minutes, 10 seconds right now in the last uh uh two to three months uh the rates have 30:17 30 minutes, 17 seconds increased much faster than the average trend of running mass because of uh the global uncertaintity and things like 30:25 30 minutes, 25 seconds that. So it is not possible for me to give you a exact figure or a number but I mean 450 500 is the top line that we 30:34 30 minutes, 34 seconds could do with the entire capex that we have and 80 90% is what we are looking 30:40 30 minutes, 40 seconds at should come from the this segment sir okay the 450 crores is for your 30:48 30 minutes, 48 seconds consolidated revenue right your yes unit and your current yes sir yes sir 30:56 30 minutes, 56 seconds the the volume that you're talking about is also consolidated. 30:59 30 minutes, 59 seconds Yes. Yes. Yes. I know. So 80% of 450 crores is what I can assume 80% of 500 it would become sir if if you 31:07 31 minutes, 7 seconds hold the exact math that would be 576 into roughly around 8.2 472 31:15 31 minutes, 15 seconds driving on 82 85% is going to be around 450 460 crores 454. So how did you arrive at this 576 multiplied by 8.2? 31:25 31 minutes, 25 seconds Yes sir. 31:26 31 minutes, 26 seconds Why would why 8.2 that is the rate of uh the peril product? 31:33 31 minutes, 33 seconds Yes per kilo. Yes sir. For kilo 56 8.2 is the rate at present sir. So I'm multiplying at present. I'm not taking 31:42 31 minutes, 42 seconds uh the next one and I ask for your factors into consideration. I know and you are giving 80%. Okay. 31:50 31 minutes, 50 seconds Yes sir. 31:51 31 minutes, 51 seconds Okay. And what is the margin guidance you can give us for FI27 and 8? 31:58 31 minutes, 58 seconds Uh margin guidance margins are going to be uh around 20 to 32:05 32 minutes, 5 seconds 25% that is what we have guided. said that is how we have worked in the last uh 3 four years four five years whatever 32:13 32 minutes, 13 seconds you want to consider it as and uh uh that is what uh we are going trying to aim at 32:22 32 minutes, 22 seconds okay so because you did 18% in September quarter and now you did 28 32:28 32 minutes, 28 seconds which is a very big uh difference if you can narrow it down for us it would be helpful 32:36 32 minutes, 36 seconds the bigger differences because we have mentioned before that you know quarter two of uh this industry remains little 32:46 32 minutes, 46 seconds dull because of the rain and uh because of uh you know the dynamics uh that that 32:53 32 minutes, 53 seconds are there we have to add more extra liners to the product then there is uh more difficulty in manufacturing so that 33:01 33 minutes, 1 second is why you will always see uh quarter four to be sharp quarter one to be sharp 33:07 33 minutes, 7 seconds and uh quarter two and three uh three three also okay but two on the average 33:14 33 minutes, 14 seconds side based on the rainy season. So the industry to which we supply to they also face uh dull demand there. 33:23 33 minutes, 23 seconds So for the entire year what is the number we can work with margin number sir uh I have given you the revenue 33:32 33 minutes, 32 seconds target and I've given you the beta margins and I think uh 20 to 25% you said right margin 33:40 33 minutes, 40 seconds yes yes sir yes sir okay and uh and any capex plans for fi 27 and 28 no sir whatever is there in our kitty 33:49 33 minutes, 49 seconds right now we are going to finish that we are going to uh complete it but yes uh 33:56 33 minutes, 56 seconds we'll uh give a guidance of the KEX plan for FI28 uh in our AGM and uh what we 34:03 34 minutes, 3 seconds are going to do what what is the next step that company is going to take we are expecting that uh by the time we 34:10 34 minutes, 10 seconds arrive on AGM we'll have a fixed definitive date for the inauguration of uh the new plant as well 34:19 34 minutes, 19 seconds okay and uh thank you and currently you are essentially net debt free. You have no interest except I think six odd grows 34:27 34 minutes, 27 seconds of short-term borrowings fund. So how do you see this going forward? step three 34:33 34 minutes, 33 seconds uh we are very clear on it that uh we are there's no point there's no point I 34:42 34 minutes, 42 seconds see that there should be a depth that is going to come into our picture because uh you know the uh inventory that you 34:49 34 minutes, 49 seconds see the cash that we have we manage it in a way that if we have surplus cash we try to stock up our inventory our last 34:57 34 minutes, 57 seconds seven years of record have explained us that whatever we purchase Now after 8 to 10 months uh it gives us 10 to 15% of 35:06 35 minutes, 6 seconds premium. So there is one thing which is going to be added on the Q4 numbers that is that whatever inventory we had we got 35:16 35 minutes, 16 seconds good benefit. So it is basically a game of trailing sir. You have to have your own uh stock at a better price than your 35:24 35 minutes, 24 seconds competitor and then your other people uh unorganized organized people for at least 2 to 3 months. So the customer 35:32 35 minutes, 32 seconds accepts our rates but it accepts you know when the entire market is operating like that. So we give our customers 15 35:40 35 minutes, 40 seconds 20 days extra leverage to understand that why we are asking for a price increase. So you know that is a part of the part of the entire story. 35:49 35 minutes, 49 seconds Okay. So even though your revenue is expected to go from 150 to like 400 plus 35:57 35 minutes, 57 seconds in two years, you don't expect any increase in short-term debt because of working capital. 36:02 36 minutes, 2 seconds So working capital we might need for uh but it is going to be on incremental value not that uh you know there is any 36:10 36 minutes, 10 seconds fixed cost that is associated and we're going to be cash burning. So if you are going to make materials we are going to 36:19 36 minutes, 19 seconds pay are we work largely on per metric t concept. So most of the things are on how much we sell. So 36:28 36 minutes, 28 seconds if we are selling if we are selling more then definitely we would require more uh 36:35 36 minutes, 35 seconds uh you know working capital front maybe some cushion would be required but it is very difficult at present to assess that uh what it would be for us. 36:46 36 minutes, 46 seconds Understood. Understood. I had one last session on your industry the products that you are making. Can you explain to us the demand and supply dynamics of your product? 36:56 36 minutes, 56 seconds uh because there are other players also expanding. So I just wanted to understand uh how the demand is and if at all you can quantify the demand and supply that would be better. 37:07 37 minutes, 7 seconds Sir at present uh uh we have a very strong order book. I cannot comment on 37:15 37 minutes, 15 seconds uh the other people what they are banking on. We are banking on 50% on the existing customers that we 37:23 37 minutes, 23 seconds supply to who are also on a very heavy capex plan and the next 50% we are planning to acquire customers who we 37:32 37 minutes, 32 seconds have not been able to tap because of low production capacity. So we know our story uh and our demand and 37:42 37 minutes, 42 seconds uh I mean that is what I could tell you at the moment. So you are not worried of any over supply concerns or anything of that sir? 37:50 37 minutes, 50 seconds Not exactly sir. Not exactly because you know uh what is happening is there is a lot of 37:59 37 minutes, 59 seconds uh unidentified uh or I would say that uh you know small players running into 38:07 38 minutes, 7 seconds this they would have to take the exist uh exit especially in this rough time where you know there is so much 38:14 38 minutes, 14 seconds volatility in negative rates bad rates and everything. So it is not going to be a game of uh uh person who would have 38:22 38 minutes, 22 seconds less capital. So we we are thinking that in the next five six months there is a lot of regional players that would exit from the industry. 38:33 38 minutes, 33 seconds Okay. Thank you so much and best of luck. 38:37 38 minutes, 37 seconds Thank you so much sir. You have a good day. Yes. 38:43 38 minutes, 43 seconds Thank you ladies and gentlemen. In order to ensure that the management will be able to address questions from all the 38:50 38 minutes, 50 seconds participants in the conference, kindly limit your questions to two per participant. Should you have a follow-up question, please rejoin the queue. 38:58 38 minutes, 58 seconds Participants, you may please note if you wish to ask a question, please press star and one. The next question is from 39:05 39 minutes, 5 seconds the line of Vanaya Kla from Inve Limited. Please go ahead. 39:11 39 minutes, 11 seconds Hello, good day. Uh first of all congratulations for the greatness. Thank you so much. 39:19 39 minutes, 19 seconds So I actually had a doubt regarding the market share for the company. Uh if I'm not wrong the overall market size is 39:27 39 minutes, 27 seconds around 1600 1800 K right? 39:36 39 minutes, 36 seconds Yeah. It should be 60 um s uh roughly around 1,800 cr rupees. 39:51 39 minutes, 51 seconds Yeah. So we were earlier having 8 78% market share and we are planning to go to 400 cr revenue by fi. Okay. 40:02 40 minutes, 2 seconds Yes sir. So we are largely trying to climb from 8% market share to 20 25% market share. What can the confidence and what is that? 40:14 40 minutes, 14 seconds No sir. So the market that we are talking about is at present by the end of this year this market will grow to 40:22 40 minutes, 22 seconds 2,00 or 2,100 and in the next year it is going to again grow. So every year the market requirement is growing by a good 40:31 40 minutes, 31 seconds number. I see I cannot give you exact number or I cannot talk about the number because I don't have a research report in my hand. So I could just tell you by 40:39 40 minutes, 39 seconds my industry experience in the last five six years the market itself has doubled. 40:46 40 minutes, 46 seconds So it is not that you know the market is going to remain the same and we are expanding. Uh Indian steel story is as 40:54 40 minutes, 54 seconds interesting as the ramen story is. So all of us are in the same supply chain as well. 41:01 41 minutes, 1 second Got it. And is there any competitive edge that we have at hand or just 41:08 41 minutes, 8 seconds a lot of lot of competitive edge sir because uh the maximum of iron ore is 41:15 41 minutes, 15 seconds available uh near urifa harkand and maximum steel plants that are working in our segment are look skewed towards 41:24 41 minutes, 24 seconds chhattisgar uh madhya pradesh then uh darkenda 41:30 41 minutes, 30 seconds rice Bengal or dih. So this is the place where maximum of the work is happening 41:37 41 minutes, 37 seconds on the melting of uh iron ore and the pellets and the belts which are there uh 41:45 41 minutes, 45 seconds near the jalna or uh you know in the top there are more scrap base. So uh we are 41:54 41 minutes, 54 seconds placed where we should be. I think uh that is the logic that we have sir. 42:00 42 minutes Great. Got it. Thank you for answering the question. Thank you so much sir. 42:06 42 minutes, 6 seconds Thank you. Next question is from the line of paras from purple and vortex ventures. Please go ahead. 42:15 42 minutes, 15 seconds Hello. Good afternoon. 42:18 42 minutes, 18 seconds Good afternoon. Namaskar sir and it is you know my pleasure sir. 42:24 42 minutes, 24 seconds I mean and congratulations to you for delivering this strong set of results and almost as expected you know what you 42:30 42 minutes, 30 seconds had guided for uh just two queries my probably three uh just wanted to understand the you know the quality 42:38 42 minutes, 38 seconds differential probably tops two three points for LGB limited versus our trip 7 product that we had and alongside the uh revenue I 42:48 42 minutes, 48 seconds mean the price per kg for both these products. Yes sir. That was the first question. 42:54 42 minutes, 54 seconds Sir, I would like to answer you this on an email rather than this because that will take the competitive advantage of 43:00 43 minutes pricing in that but I would I would still explain it to you. So the basic difference is that we were able to 43:09 43 minutes, 9 seconds provide 45 to 50 hours of uh life in a GB trip 7 product. Uh that is what we 43:17 43 minutes, 17 seconds were able to provide. Now we are able to provide 50 to 55 hours uh life and 43:24 43 minutes, 24 seconds above. So that is 50 to 55 hours is what we are giving a warranty on that this is going to happen if uh based on the 43:33 43 minutes, 33 seconds conditions that you know the right conditions of melting are there but the product has clogged up to 61 hours and 43:40 43 minutes, 40 seconds 62 hours as well. So this is the basic difference and the product difference what uh why this is this and that is 43:49 43 minutes, 49 seconds that is going to be largely based on uh the different mechanism of manufacturing that we have adopted after the IPO1. 43:58 43 minutes, 58 seconds Second, we have identified new set of uh mining places located in Madhya Pradesh, 44:05 44 minutes, 5 seconds located nearby to Delhi apart from the conventional Bihar mines that we are 44:12 44 minutes, 12 seconds only playing on. So it is a mix of a lot of things sir. Okay. So just I mean broadly and you would have quantified 44:20 44 minutes, 20 seconds that. So since you are warranting let's say a higher life time for the product, right? dimension 44:28 44 minutes, 28 seconds because your price or realization should probably be more than what you deliver on that 44:35 44 minutes, 35 seconds because obviously the product requirement will be less than in that case. So you know I hope you understand so you know if you're delivering a high 44:42 44 minutes, 42 seconds lifespan the requirement naturally comes down and therefore your realization has to more than compensate for that. 44:48 44 minutes, 48 seconds No sir we are not going to compensate for anything. The warranty basically is the how it works is that suppose that we 44:57 44 minutes, 57 seconds supply the product. If you are satis if you are satisfied with uh the product uh 45:04 45 minutes, 4 seconds then it is fine. If it is if you are not satisfied our team goes there they demonstrate them that it is going to work. So uh you know there is a set now 45:13 45 minutes, 13 seconds set system for you know let me put it I mean correctly probably I've not been able to convey. 45:19 45 minutes, 19 seconds So what I was trying to say is that suppose I mean and this is just a broad discussion. So for example if the earlier product was delivering let's say 45:26 45 minutes, 26 seconds 40 hours of life let's say and this one delivers say 55 hours of life. So that 10 15 hours extra that you're warranting 45:34 45 minutes, 34 seconds and maybe if your earlier product was also delivering this 50 55 you know hours then then you probably you are 45:41 45 minutes, 41 seconds better off by warranting also and collecting a higher premium of that warranty. But if that was the earlier product was actually delivering only 40 45:49 45 minutes, 49 seconds hours let's say life and this one is delivering 50 55 hours less then that 15 hours extra that you are delivering now with this new product reduces the volume 45:58 45 minutes, 58 seconds of the earlier kind of a product which means the nightation for this product should higher than that 15 hours 46:06 46 minutes, 6 seconds compensated product volume. No no no no no s there are two things number one that uh most of the companies to which 46:13 46 minutes, 13 seconds we supply they require this product in very large quantity so somewhere we are supplying 70% of the entire consumption 46:22 46 minutes, 22 seconds somewhere 75% somewhere 80% but very few or very small entities would exist where 46:29 46 minutes, 29 seconds we would be 100% okay so we are going to tap that 15% remaining I'm not going to 46:37 46 minutes, 37 seconds eat out our consumption which was already existing. That is what you're trying to understand. 46:41 46 minutes, 41 seconds Yeah, that's what I was trying to say because so so no no so the so a company which will require huge quantities they would 46:50 46 minutes, 50 seconds never depend on one single vendor they would always need one two three people because it's a very essential product. 46:56 46 minutes, 56 seconds Okay. So that and uh the second thing is that we were uh we are going to increase our 47:05 47 minutes, 5 seconds share in that particular unit uh from that much quantity because of the better quality of product. 47:13 47 minutes, 13 seconds Right. Right. Right. So you're trying to expand the market broadly. Yes. Yes sir. Yes. 47:21 47 minutes, 21 seconds Right. There would be there would be hardly s I think uh uh from the 100 120 47:29 47 minutes, 29 seconds clients that we have there would be hardly 10 15 clients that would be taking single-handedly from us rest 80% 90% goes up to 95% but not 100%. 47:40 47 minutes, 40 seconds Right. Right. Right. And in general in terms of the quality perspective and you would know it better sir amongst the 47:48 47 minutes, 48 seconds unorganized and the organized industry your SGB limited as a product how do you rank I mean of course you would rank it whatever way you rank it but how do you 47:57 47 minutes, 57 seconds rank let's say whether from top five is there a basis of you know some sort of a ranking where you would say you would land up with your product at top five 48:05 48 minutes, 5 seconds top three top 10 something like that combine both or you organized unorganized sir I think it would be better uh for 48:14 48 minutes, 14 seconds the customers to rank it in the coming days in the coming future rather than us crowning ourselves or the groundowning 48:23 48 minutes, 23 seconds ourselves let the market decide how productive and how we are doing no fair in just last question 48:33 48 minutes, 33 seconds I'm sorry to interrupt uh Mr. Ch please rejug for more question. Okay. Okay. Thank you. 48:40 48 minutes, 40 seconds Next question is from the line of Jonathan Fernandez from Whitebridge Capital. Please go ahead. 48:50 48 minutes, 50 seconds Congratulations on a good set of numbers. 48:52 48 minutes, 52 seconds I small query. So yes uh semi- working capital details like how many receivable 49:00 49 minutes days inventory days and do we expect that to be the same or to improve in the coming quarters 49:08 49 minutes, 8 seconds there the receivable days uh have decreased from 72 to around 50 to 55 uh 49:16 49 minutes, 16 seconds 60 days in the last year if you say broadly the only thing which has increased is the 49:25 49 minutes, 25 seconds inventory and that is because we are uh working on a very uh continuous kind of 49:32 49 minutes, 32 seconds a you know in the market. So as I am I am not sure you would have gone through the previous uh things but the biggest 49:42 49 minutes, 42 seconds achievement of monolithics was that we did not stop our plant one day also in Corona in the covid situation also we 49:50 49 minutes, 50 seconds kept delivering to all the customers who we were supplying to. So most of the times like in the times of war in the 49:59 49 minutes, 59 seconds times of acute crisis when suppose that uh if we feel that there would be no additives available if there would be 50:07 50 minutes, 7 seconds shortage of bags as it happened in the cement industry or things like that we we try to not say no to our customers 50:15 50 minutes, 15 seconds because that no is the biggest opportunity for anyone else to step in and if they step in it is very difficult for us to step back in again or maybe 50:24 50 minutes, 24 seconds we'll reduce our market share there. So if you see uh our uh data days has has 50:31 50 minutes, 31 seconds improved our credit days have slightly gone down for the cash payments that we have done to uh the packaging industry 50:38 50 minutes, 38 seconds because there was a good uh decent short supply from that sector and there was air that because of the LPG you know you 50:48 50 minutes, 48 seconds wouldn't get them and all those things were there and apart from that the additives also that come to us uh like 50:55 50 minutes, 55 seconds the boronoxide It travels largely from uh the uh European side of the US 51:02 51 minutes, 2 seconds subcontinent and the boric acid that comes to us the raw material of that comes from the Middle East side. So uh 51:10 51 minutes, 10 seconds you know till now the supply has been good and we have tried to maintain uh 3 months 2 months inventory man so that 51:18 51 minutes, 18 seconds you know we are ready for any tough kind of situation. If that answers your question sir. 51:25 51 minutes, 25 seconds Oh yeah that's our reference and the second thing is uh on cash flow. So now I also heard you say that incrementally you would require working capital going 51:34 51 minutes, 34 seconds forward as you say right. So any idea on those numbers? What are we looking at there? 51:40 51 minutes, 40 seconds Sir the target that we have for fiscal 27 is that we should have 30 to 35 51:46 51 minutes, 46 seconds crores cash in hand and uh 28 60 to 65 crores. Right. So now we do not have the 51:54 51 minutes, 54 seconds exact number of uh whether we would require any uh working capital or not is 52:02 52 minutes, 2 seconds the cycle in which we are uh keeping the inventory. Now this is going to finish as long as the world normalizes. We are 52:10 52 minutes, 10 seconds not going to be so high on inventory. We want to maintain maximum inventory of you know 100 to 120 days 3 months 4 months is very much sufficient for us. 52:20 52 minutes, 20 seconds And if we have to go to this level and then manufacture at that quantity might require some so it is very uncertain at 52:28 52 minutes, 28 seconds the moment to quantify anything in that s understood and uh what is the status of 52:36 52 minutes, 36 seconds the IPO funds are all the funds utilized and it is no sir uh no sir uh at at present I'll 52:44 52 minutes, 44 seconds just give you a brief detail one second so we raised 82 2.02 cr rupees in total 52:54 52 minutes, 54 seconds and in that around 20 cr rupees was for the working capital and 47 cr rupees was 53:00 53 minutes for the cipex in that 47 cr rupees roughly around 24 cr rupees is available 53:08 53 minutes, 8 seconds with us which we have to outlay in the current quarter s 53:16 53 minutes, 16 seconds understood and yes last question on the green field uh capex plan. So you won't 53:23 53 minutes, 23 seconds be requiring debt for that or will that will internal approvals be sufficient? Sir, can you repeat it please? 53:32 53 minutes, 32 seconds So for the green field capex will you require taking any debt or will internal approvals be sufficient for? 53:40 53 minutes, 40 seconds No no for the green field capex uh whatever we have in our kitty uh is 53:47 53 minutes, 47 seconds sufficient for us. We are still evaluating uh whether we would have to you know switch uh 5 6 rupees from 53:56 53 minutes, 56 seconds whatever is available and use it use it as working capital. We whatever we fund 54:03 54 minutes, 3 seconds was required is already in hand with us and we will not require any fund to scale to whatever we have committed to. 54:13 54 minutes, 13 seconds Understood. All right. Thank you. Thank you sir. You have a good day. 54:18 54 minutes, 18 seconds Thank you. A reminder to all the participants, please restrict yourselves to one question only. The next question is from the line of Pel from SM Holding. 54:28 54 minutes, 28 seconds Please go ahead. 54:31 54 minutes, 31 seconds Yeah. Uh hi, good afternoon. Uh so sir I wanted to understand regarding this you know recent board meeting you 54:40 54 minutes, 40 seconds uh approved the uh exploration of some strategy expansion initiative like some joint venture agreements with mine 54:47 54 minutes, 47 seconds owners and establishing manufacturing or processing facility. So so can you throw some more light on that like what exactly are we trying to do here? 54:56 54 minutes, 56 seconds Sir, we are trying to uh like as mentioned before that we want to put our footprints in Rajasthan. We 55:04 55 minutes, 4 seconds want to put our footprints wherever it is impossible for our product to reach because you know uh if you minus the 55:14 55 minutes, 14 seconds fresh portion then roughly around 6 and 1 half to 7 rupees kg is the product cost and if it travels very far the cost 55:22 55 minutes, 22 seconds comes to around 4 rupees kg. So the idea is to set up set a unit there and uh not 55:30 55 minutes, 30 seconds try to settle from here. But what we are going to do when we travel to any place like that is we are going to have a 55:38 55 minutes, 38 seconds joint venture with the mines owner that they'll guarantee us 5 years 10 years supply or a minimum quantity supply and 55:46 55 minutes, 46 seconds then go and uh invest money over there. 55:53 55 minutes, 53 seconds Okay. Okay. Yeah. Thanks. Yes sir. Thank you. 56:00 56 minutes Next question is from the line of Nam Desai, an individual investor. Please go ahead. 56:08 56 minutes, 8 seconds Hello. 56:10 56 minutes, 10 seconds Good afternoon. Yes. Good evening sir and congratulations for a great set of members. Thank you sir. 56:18 56 minutes, 18 seconds So I just wanted to understand on the capex part why are we growing so much on high capacity in just one go like when 56:26 56 minutes, 26 seconds you look at our other peers they are gradually sir increasing their capacity and if it value of power is also quite higher man I mean is quite higher than 56:35 56 minutes, 35 seconds us I just wanted to understand on that part sir uh we are the grade of machinery 56:43 56 minutes, 43 seconds that we are establishing they do not supply lesser quantify lesser capacity machineries. So our 56:53 56 minutes, 53 seconds suppliers uh are from Finland, metro then uh so checker all good companies 57:01 57 minutes, 1 second which do not do uh lesser capacity uh machines when it comes to crushing and 57:08 57 minutes, 8 seconds uh mixing area. Okay, that is the one thing. The second thing is even though we are we are planning to reach like 1 57:18 57 minutes, 18 seconds lakh 32,000 was our capacity and in 47 cr rupees we are trying to reach 576 if 57:26 57 minutes, 26 seconds you compare with the industry standards uh the uh net block of ours is an 57:33 57 minutes, 33 seconds exceptionally low and the idea is that if we uh we do not have a machine available uh smaller than 57:42 57 minutes, 42 seconds this which can uh do the adequate uh you know which can deliver proper operations or which cannot deliver proper avatar to 57:52 57 minutes, 52 seconds us then we have to go for this machinery noted sir and one more thing sir what is the key difference that we see in 58:00 58 minutes technology in ours and our peers sir uh I do not know what technology our 58:10 58 minutes, 10 seconds peers are utilizing But uh be rest assured our plans are that when we inaugurate uh the new unit 58:19 58 minutes, 19 seconds we want to uh you know invite all the people interested and who have been a 58:25 58 minutes, 25 seconds part in monolithics to come and and see uh what technology we are using how things are happening. So uh we are we 58:34 58 minutes, 34 seconds are going to go on detail on these things when we do our AGM s but be rest assured that uh there the technology 58:44 58 minutes, 44 seconds that we are using is uh going to be the best in class because uh the list of vendors that we have taken the 58:52 58 minutes, 52 seconds machineries from. I do not think that you would find those kind of machineries installed anywhere in India. You can be rest assured for that. 59:02 59 minutes, 2 seconds Got it sir. All the very best. Thank you for your time. Thank you so much. 59:08 59 minutes, 8 seconds Thank you. Next question is from the line of Pavan Kumar, an individual investor. Please go ahead. 59:16 59 minutes, 16 seconds Hi, thank you for the opportunity and good afternoon sir. 59:21 59 minutes, 21 seconds Yeah, good afternoon and congratulations for the very good set of number. Thank you. 59:27 59 minutes, 27 seconds Yeah. Uh I I don't have a uh you know much technical question. I just want to 59:34 59 minutes, 34 seconds uh know your uh your point of view the business growth for next three years. 59:40 59 minutes, 40 seconds How do you see it uh growing and if you have some internet you may have already 59:51 59 minutes, 51 seconds sorry I could not uh get the last two lines. Can you please repeat the last two lines? 59:56 59 minutes, 56 seconds Yeah. And you're saying next three years, how you how do you see the business grow? Where do you see the business? And you may have set up some 1:00:05 1 hour, 5 seconds internal targets if you can share anything on that or throw some light in terms of your long-term plan. So like 1:00:12 1 hour, 12 seconds one two one year is okay. I'm looking for longer. 1:00:18 1 hour, 18 seconds Yes sir. Can I I will answer that question uh very briefly with the historical data. So whatever uh 1:00:28 1 hour, 28 seconds blessings of God you would say or uh the hard work that we have done the story is 1:00:35 1 hour, 35 seconds not of one year or four quarters if you track us from 2018 or 19 since the time the company has 1:00:44 1 hour, 44 seconds uh started there's a good CGR number that we have been on in terms of revenue that path to be very fair when we 1:00:52 1 hour, 52 seconds started in 2018 or 19 we did not know that this product could uh require so much. This could uh you know scale up to 1:01:02 1 hour, 1 minute, 2 seconds this level and right now we are scaling up to what level we can see maybe in the next 2 three years it uh it requires 1:01:10 1 hour, 1 minute, 10 seconds further scaling when it requires we will be up there we are trying to establish us ourselves as the be best in class in 1:01:20 1 hour, 1 minute, 20 seconds terms of both customers and shareholders value. So we will not let leave any stone unturned. That is one thing. The 1:01:27 1 hour, 1 minute, 27 seconds second thing uh you're what you're talking about. If we would have uh surplus cash in hand, we would explore 1:01:35 1 hour, 1 minute, 35 seconds there are any number of uh related products and consumable refractive related products where we can uh put our 1:01:43 1 hour, 1 minute, 43 seconds footprints. We have good reputation. We have good experience in our hand. So all those things we want to outlay after we 1:01:51 1 hour, 1 minute, 51 seconds have finished what we took in we took in our hand and uh once you know that is 1:01:58 1 hour, 1 minute, 58 seconds done after that we want to go to next story. We do not want to create a hype that we are doing this, we are doing that. Whatever we think we can do, we 1:02:06 1 hour, 2 minutes, 6 seconds want to try to do that. Then we want to uh you know make it look okay, it is 1:02:13 1 hour, 2 minutes, 13 seconds happening, it is going good and then uh you know go for a bigger vision. at 1:02:19 1 hour, 2 minutes, 19 seconds present uh scaling up from 130 to 500 in the next 2 years is a good 1:02:28 1 hour, 2 minutes, 28 seconds uh vision that we think on the board's p perspective at present and in this line 1:02:35 1 hour, 2 minutes, 35 seconds when we are growing we would definitely try to add more and more value in the company that is the basic objective of I 1:02:42 1 hour, 2 minutes, 42 seconds think any promoter uh in the Thank you. Next question is from the 1:02:53 1 hour, 2 minutes, 53 seconds line of SA James, an individual investor. Please go ahead. Hello. 1:03:00 1 hour, 3 minutes Hello. Good afternoon sir. Good afternoon. Congratulations on a good set of numbers. Uh just a few uh questions 1:03:08 1 hour, 3 minutes, 8 seconds on the accounting side. Uh Q4 uh For the true for result we saw a 1:03:16 1 hour, 3 minutes, 16 seconds significant portion from uh uh uh stock and trade. So earlier it used to be very 1:03:24 1 hour, 3 minutes, 24 seconds low but this time it has gone up to 25% in the consolidated trade number then 40% in the standalone number. So can you 1:03:32 1 hour, 3 minutes, 32 seconds just give us a brief understanding like is it something to do with uh trading sir? Uh so what happens is the datives 1:03:42 1 hour, 3 minutes, 42 seconds that we buy uh the boring asset that we have what we do is we try to understand the market and analyze 1:03:50 1 hour, 3 minutes, 50 seconds uh you know what rate we can get it on what rate we can supply. So we take it from the company and then after once we 1:03:59 1 hour, 3 minutes, 59 seconds have uh you know uh procured it in the next two months if you feel that okay this product is going to expire we try 1:04:07 1 hour, 4 minutes, 7 seconds to swap hands we try to sell it to the people who like the unorganized people who are nearby. So the major portion 1:04:16 1 hour, 4 minutes, 16 seconds what you see there is the additives sold uh in the quarter which we procured at a much better price and we sold at a very premium price. 1:04:28 1 hour, 4 minutes, 28 seconds All right. Uh and what sort of margins do we earn on this? Uh just approximate idea. 1:04:35 1 hour, 4 minutes, 35 seconds Uh there is no margin uh that can be god directly. It's pure uh pure trading in 1:04:43 1 hour, 4 minutes, 43 seconds the sense of the opportunity that you have the leverage that you have because of the blessings of Mr. Trump and the 1:04:50 1 hour, 4 minutes, 50 seconds current situation we had a good leverage and we had upfront contract with our editors. So uh we did uh make some money in there. 1:05:01 1 hour, 5 minutes, 1 second All right. And uh coming to the quantity that we delivered during the year I think in the press release we had mentioned that uh we uh ran at a 1:05:10 1 hour, 5 minutes, 10 seconds capacity of uh 2 lakh 10,000 metric ton out of which 81.5,000 81.5% was the utilization. So uh for the 1:05:19 1 hour, 5 minutes, 19 seconds year the volume comes out to be 171 uh,000 metric ton. Is that correct? It should be almost nearby to that. 1:05:29 1 hour, 5 minutes, 29 seconds All right. uh just uh so we uh while updating our model we just we just found out that the realization for last year 1:05:36 1 hour, 5 minutes, 36 seconds that is FI25 was somewhere coming to be 8125 rupees per metric ton and this year it has gone down to uh 7900 rupees per 1:05:45 1 hour, 5 minutes, 45 seconds metric t uh as against what you commented earlier which was 8.2 No sir broadly based on the number uh 1:05:52 1 hour, 5 minutes, 52 seconds that have been published. So no sir I have I have already uh explained this in the beginning of the 1:05:59 1 hour, 5 minutes, 59 seconds call that there is uh some uh amount of sales of non-primmix product which has 1:06:06 1 hour, 6 minutes, 6 seconds been taken by limited non- primix grade which is at a lower cost which comes minus the cost of the additives. So as 1:06:15 1 hour, 6 minutes, 15 seconds it uh the cost of the average cost has gone from 7,700 to 8,200 at present but 1:06:24 1 hour, 6 minutes, 24 seconds for that you would have to minus the data of the non-p premix that the company has dealt with but I am looking at it I am looking at it on a blended level. 1:06:35 1 hour, 6 minutes, 35 seconds Uh so is is it that the premix uh mar uh premix share in the overall business has gone up as compared to the last year? 1:06:44 1 hour, 6 minutes, 44 seconds But the non-premic share has been uh little bit more than the last year uh during the 1:06:53 1 hour, 6 minutes, 53 seconds January February situ uh time that we have done because at that particular time uh we were not sure that you know 1:07:02 1 hour, 7 minutes, 2 seconds uh how additive rates could fluctuate how things could happen. So it is a part of the business. There are five products. Uh SLM 980s has been a part of 1:07:11 1 hour, 7 minutes, 11 seconds our business and we have been uh selling it out every year in a good volume. But might be sometimes it is skewed to one 1:07:19 1 hour, 7 minutes, 19 seconds quarter, sometimes it is uh you know in spread in uh three four quarters. So 1:07:26 1 hour, 7 minutes, 26 seconds uh if you want to understand uh you know the average price then what you would have to do is you have to divide it into 1:07:34 1 hour, 7 minutes, 34 seconds two classifications average price of the premixed product average price of the non-p premixed product then I think you 1:07:41 1 hour, 7 minutes, 41 seconds would get better value but on an average since the company has almost 95 to 100% 1:07:47 1 hour, 7 minutes, 47 seconds 95 to 97% of premix so maybe you know uh that 3 4% uh is adding up to the difference that you're looking at. 1:07:59 1 hour, 7 minutes, 59 seconds Thank you. Next question is from the line of Naman Gupta, an individual ambassador. Please go ahead. 1:08:08 1 hour, 8 minutes, 8 seconds Good afternoon sir. Good afternoon sir. 1:08:12 1 hour, 8 minutes, 12 seconds Uh so congratulations on good set of numbers. Uh thank you so much sir. Then the raw 1:08:19 1 hour, 8 minutes, 19 seconds material cost uh it was uh around 17 crores in quarter three. However, despite the jump in sales, it has 1:08:27 1 hour, 8 minutes, 27 seconds declined to 10 crores in Q4. Uh and at the same time, inventory has also gone up drastically. any specific reason. 1:08:37 1 hour, 8 minutes, 37 seconds Uh as mentioned earlier that the raw material cost uh what you see depends on 1:08:44 1 hour, 8 minutes, 44 seconds whether we are procuring on FOR basis or whether we are procuring on XPL basis. 1:08:49 1 hour, 8 minutes, 49 seconds Uh in the last quarter it has happened uh that we have procured more material on XPL basis because we were skeptical 1:08:58 1 hour, 8 minutes, 58 seconds that the transporters would increase the rate or change prices very dynamically. 1:09:03 1 hour, 9 minutes, 3 seconds So when we think that such things can happen, we take transportation in our hand. When it is not there, then what we do is we try to take uh the material 1:09:12 1 hour, 9 minutes, 12 seconds like a landed bridge. So that is one thing. So if you want to track that you would find that uh in the indirect expenses. I think I have already 1:09:21 1 hour, 9 minutes, 21 seconds mentioned this before. That is one thing. Second is part of inventory. uh until unless the war situation is there. 1:09:27 1 hour, 9 minutes, 27 seconds So you will always see good amount of inventory because uh not being able to supply to our customer uh loses the five 1:09:36 1 hour, 9 minutes, 36 seconds year six year relation that we have built with them. So uh when the situation becomes normal you would see 1:09:43 1 hour, 9 minutes, 43 seconds 50% lesser inventory in our stores to any of the competition of the listed or the non-listed people. But until the war 1:09:50 1 hour, 9 minutes, 50 seconds situation is there uh that is going to be essential part of uh you know uh our story sir. 1:10:00 1 hour, 10 minutes Got it sir. Uh sir any uh idea on the Q4 volume number what would be the volume 1:10:06 1 hour, 10 minutes, 6 seconds in Q4 and uh just to check if our real realization of 8.2 rupees per kilo is 1:10:14 1 hour, 10 minutes, 14 seconds inclusive of freight or 8.2 2 rupees is whatever 99.99% 1:10:22 1 hour, 10 minutes, 22 seconds product that we sell is on FR basis. So that is right inclusive and you have 1:10:29 1 hour, 10 minutes, 29 seconds made a good point where sometimes what happens is we are selling little far off then the flights would be 700 sometimes 1:10:36 1 hour, 10 minutes, 36 seconds it is close 400. So uh might be because of that what you're trying to identify that you would get. 1:10:52 1 hour, 10 minutes, 52 seconds Thank you. 1:10:54 1 hour, 10 minutes, 54 seconds Ladies and gentlemen, this time constant we will take our last question from the line of var from Perpetual Capital Advis. Please go ahead. 1:11:03 1 hour, 11 minutes, 3 seconds Thank you for the opportunity again. Uh my question was what percentage of the uh orders would be for basis and for uh 1:11:12 1 hour, 11 minutes, 12 seconds explan basis of what s what we sell of what we sell sir? Yeah. 1:11:22 1 hour, 11 minutes, 22 seconds 99.99% on effort basis. Very rare that we take uh on explan basis. Uh because 1:11:30 1 hour, 11 minutes, 30 seconds most of the customers want our product to be delivered. They do not want to do the transportation. So very uh decent 1:11:40 1 hour, 11 minutes, 40 seconds you know uh I I do not have the exact stats of that but 98 to 99% on the delivery basis. 1:11:48 1 hour, 11 minutes, 48 seconds Okay. Got it. And for this year what would be the contribution from mineral India and the margins and realization for this plant? 1:11:57 1 hour, 11 minutes, 57 seconds Sir the revenue expectation from mineral India could be somewhere around 55 to 60 cr 1:12:06 1 hour, 12 minutes, 6 seconds and what utilization of 70,000 sorry sir what percent utilization would be the 1:12:15 1 hour, 12 minutes, 15 seconds 90 to 95% sir. Okay. Of 72,000 metric. Yes sir. 1:12:24 1 hour, 12 minutes, 24 seconds Okay. And margin realization of this slightly lesser than what monotics are 1:12:32 1 hour, 12 minutes, 32 seconds due to the fact that you know economies of scale taking a very big role when it comes to our product. So it would be 1:12:42 1 hour, 12 minutes, 42 seconds slightly 1 2% lighter than what you could expect from this uh thermomeics 1:12:50 1 hour, 12 minutes, 50 seconds right and uh okay and you mentioned in your call that uh reduced manpower requirement was the reason for the sequential epida growth. 1:13:00 1 hour, 13 minutes So have you adopted any automation at your plants and how do we see this going forward? 1:13:06 1 hour, 13 minutes, 6 seconds said the automation happened because of the IP process that we used and as a company we want to uh make it as labor 1:13:16 1 hour, 13 minutes, 16 seconds dependent as possible because uh you know in uh what we have seen in the last 5 years is that labor prices uh matter 1:13:26 1 hour, 13 minutes, 26 seconds or not but labor availability matters to a very great extent. So we are trying to uh you know automate things as much as 1:13:34 1 hour, 13 minutes, 34 seconds possible. So when we started the unit we were manufacturing uh 2,000 tons a month 1:13:41 1 hour, 13 minutes, 41 seconds 3,000 tons a month uh if you cost calculate the labor utilize then and if you calculate the labor utilized now it 1:13:49 1 hour, 13 minutes, 49 seconds is going to be uh the ratio is going to be stunning. If you see per labor output, it is going to be stunning 1:13:57 1 hour, 13 minutes, 57 seconds because we are constantly striving and uh you know it should be much much better when it comes to metalikica 1:14:05 1 hour, 14 minutes, 5 seconds because it is going to be a entirely integrated project. Monarch you know it's built in a way that it has been 1:14:13 1 hour, 14 minutes, 13 seconds renew uh the renovation has happened but uh meta we have already identified where 1:14:20 1 hour, 14 minutes, 20 seconds we need extra money what things we have to improve all those things have come into play sir 1:14:27 1 hour, 14 minutes, 27 seconds got it thank you so much thank you so much sir thank you ladies and gentlemen that was 1:14:37 1 hour, 14 minutes, 37 seconds the last question I would like to hand the conference over to the for Thank you everyone for participating on 1:14:46 1 hour, 14 minutes, 46 seconds this call. We trust that we have addressed all your query during this session. However, if there are any remaining question, please feel free to 1:14:54 1 hour, 14 minutes, 54 seconds reach out to our investor relation team at go India advisor. Once again, we extend our gratitude to all the 1:15:01 1 hour, 15 minutes, 1 second participants for joining us today. Thank you and have a great day. 1:15:07 1 hour, 15 minutes, 7 seconds Thank you very much on behalf of Go India Advisor LLP that conclude fifth conference.