Ramkrishna Forgings Ltd — Q4 FY26

Ramkrishna Forgings Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=M430B665yok Published: 9 days ago

0:03 3 seconds Ladies and gentlemen, good day and welcome to the RK for Limited Q4 FY26 earnings conference call hosted by 361 Capital Market Private Limited. 0:15 15 seconds As a reminder, all participant lines will be in the listenon mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:25 25 seconds Should you need assistance during the conference call, please single an operator by pressing star then zero on your touchstone phone. 0:33 33 seconds I now hand the conference over to Mr. 0:35 35 seconds Anamalai Jaraj from 361 Capital Market Private Limited. Thank you and over to you sir. 0:42 42 seconds Thanks. Welcome all the participants on behalf of 61 capital market for Krishna 0:50 50 seconds 426 and 26 from the management we have with us today managing director Mr. Jalam director Mr. 1:04 1 minute, 4 seconds Litam dire director and Mr. Mindra White in finance 1:11 1 minute, 11 seconds and company secretary. I'll now hand over the call to the management for open to be followed by question. 1:23 1 minute, 23 seconds Thank you. Thank you JJ. Good evening everyone and thank you for joining us on this call to discuss the Q4 FY26 1:30 1 minute, 30 seconds earnings. I trust all of you have had a chance to review the earnings document that we have uh shared with you. 1:39 1 minute, 39 seconds In Q4 FY26, the global macroeconomic environment turned incrementally more challenging although conditions continue 1:46 1 minute, 46 seconds to vary significantly across regions and sectors. While the quarter commenced on a relatively stable footing carrying 1:53 1 minute, 53 seconds forward momentum from the prior period, the outbreak of conflict in Middle East adversely impacted operating conditions towards the later part of the quarter. 2:03 2 minutes, 3 seconds As a result, the energy price volatility, persistent reflationary pressures and renewed supply chain 2:09 2 minutes, 9 seconds disruption created uncertainty for a b uh for a certain business environment. 2:17 2 minutes, 17 seconds In contrast, the domestic macroeconomic environment remains relatively favor favorable. India continue to stand out as one of the fastest growing major 2:25 2 minutes, 25 seconds economies supported by resilient consumption, sustained government capex in infrastructure activity and improving manufacturing momentum. 2:35 2 minutes, 35 seconds Against this backdrop, we are pleased to report a improved performance in the fourth quarter enabling us to end FY26 on a strong note. Volumes in domestic 2:44 2 minutes, 44 seconds market have been strong following the GST rate recession in September. There has been sustained momentum in domestic 2:51 2 minutes, 51 seconds auto industry in India. This resulted in sustained momentum in wholesale volumes with all segments such as MSB, tractors, 2:59 2 minutes, 59 seconds PBS reporting doubledigit growth in the fourth quarter. 3:04 3 minutes, 4 seconds As we had indicated the railway business has been a strong pillar of growth. We have taken steps to deepen our footprint and enhance capabilities in this 3:12 3 minutes, 12 seconds segment. In recent years, these are now paying dividends as the share of business from railway has grown to 7.5% 3:19 3 minutes, 19 seconds of revenue in this year against four 4.6% a year ago. 3:24 3 minutes, 24 seconds Now let me share some financial highlights for the quarter. 3:29 3 minutes, 29 seconds We reported consolidated revenues of 1216.78 core that is higher by 28% on 3:36 3 minutes, 36 seconds year-on-year basis compared to 947.21 in Q4 FY25. 3:42 3 minutes, 42 seconds On a quarter quarter basis revenue were higher by 11% compared to 198.52 in Q3 FY26. 3:51 3 minutes, 51 seconds A strong performance in domestic market supported by resale performance in international market has helped us to deliver solid topline growth on a 4:00 4 minutes year-on-year basis as well as on Q and QCS. 4:05 4 minutes, 5 seconds Abita excluding other income is rupees 28.19 cr in Q4 higher by 111% yearonear 4:12 4 minutes, 12 seconds compared to AITA of 98.5 in Q4 FY25 on Q and Q basis AITA was higher by 27% 4:20 4 minutes, 20 seconds compared to 163.37 in Q3 FY26 the margin improvement to the margin improved to 4:28 4 minutes, 28 seconds 17.1% higher by almost 220 basis point quarteron quarter profit before tax is 64.33 cr in Q4 FY26 4:38 4 minutes, 38 seconds compared to 29.69 cr in Q3 FY26 reflecting a 117% quarteronquarter growth 4:46 4 minutes, 46 seconds uh profit uh in the consolidated re uh accounts has been impacted by around 10.4 4 Core due to elimination of profit 4:54 4 minutes, 54 seconds of 5.9 C from the subsidiaries and loss of 4 and a half cr from the Mexico subsidiaries otherwise the profit could 5:03 5 minutes, 3 seconds have been much higher on the consolidated basis on the fullear numbers we reported consolidated revenue 5:09 5 minutes, 9 seconds of rupes 4,238 cr for the full year FY26 that is higher by 5% on year-on-year 5:17 5 minutes, 17 seconds basis compared to 434 C in FY25 AITA stood at 64 42.70 cr for FY26 that 5:25 5 minutes, 25 seconds is higher by 15% yearonear compared to 559.56 cr in FY25 5:31 5 minutes, 31 seconds profit before tax is 112.58 cr in FY26 compared to 148.79 cr excluding excess 5:38 5 minutes, 38 seconds item FY25 that is lower by 24% year one year 5:45 5 minutes, 45 seconds and uh additionally our rail wheel joint venture remains on track with commercial production anticipated ated by Q1 FY27. 5:56 5 minutes, 56 seconds With these growth levers firmly in place, we are confident that from the next quarter onwards, we will return to further improved operating territory and 6:05 6 minutes, 5 seconds look to sustain the momentum throughout FY27. 6:09 6 minutes, 9 seconds With that, I would like to hand over the proceeding to Mr. Mles Gandhi, whole time director. Thank you. Over to Milles. 6:17 6 minutes, 17 seconds Thank you. 6:19 6 minutes, 19 seconds During the Q4 the company secured new orders worth 594 crores in the program life for four 6:28 6 minutes, 28 seconds years. 56% of these orders were from automotive segment and balance 44% were 6:36 6 minutes, 36 seconds from the non-automotive segment reflecting continued progress in company's diversification strategy. 6:43 6 minutes, 43 seconds Out of the 594 crores 334 crores came in the auto sector from came in the auto 6:50 6 minutes, 50 seconds sectors of which 323 crores came from the CV sector and 11 cr came from the EV sector 6:59 6 minutes, 59 seconds and in the non-auto sector 500 uh 258 crores came from the energy segment itself and two cr from the off that's from my side. Thank you. 7:11 7 minutes, 11 seconds Thank you. It's over to Jasper. 7:24 7 minutes, 24 seconds Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a 7:31 7 minutes, 31 seconds question may press star and one on the test telephone. 7:37 7 minutes, 37 seconds If you wish to remove yourself from the question queue, you may press star and two. 7:43 7 minutes, 43 seconds Participants are requested to use handsets while asking a question. 7:49 7 minutes, 49 seconds Ladies and gentlemen, we will wait for a moment while the question cube assembles 8:03 8 minutes, 3 seconds before somebody joins the success. 8:27 8 minutes, 27 seconds Hello. Hello. I'm sir. Yes. 8:34 8 minutes, 34 seconds Uh okay sir. No I was asking how is the how is class A picking up in the recent time? 8:42 8 minutes, 42 seconds I think class A trucks are very very strong right now. I think since last three months we are seeing restocking 8:49 8 minutes, 49 seconds happening in our warehouses in North America and I think we are looking at fresh revenues coming in from this quarter onwards from North America class 8:59 8 minutes, 59 seconds 8 trucks in significant manners and we expect it to sustain for some time at least a year or two 9:05 9 minutes, 5 seconds at least for two years calendar year it is uh good to say that 9:12 9 minutes, 12 seconds it's going to stay till third quarter of calendar year 27. Okay, let's go to the question. 9:21 9 minutes, 21 seconds Thank you. We have first question from Bala Subramanyan from Aran Capital. Please go ahead. 9:28 9 minutes, 28 seconds Uh good evening sir. Uh thank you so much for the opportunity sir. On that field we set plant uh mentioned uh it will be commencing from uh Q157 onwards. 9:39 9 minutes, 39 seconds Vakar we have submitted uh 300 uh trial wheels uh uh and for the approval and uh 9:46 9 minutes, 46 seconds from Q1 onwards what kind of run rate uh we can expect quarter and quarter basis in terms of volume. 9:53 9 minutes, 53 seconds No I think uh 300 wheels we are supposed to submit in the month of June or July. 9:59 9 minutes, 59 seconds I think uh when I said we are going to commence production it means we are starting the plant uh I think probably by end of May or June wherein we'll 10:07 10 minutes, 7 seconds start manufacturing wheels and commercial production will start immediately. So 300 wheels uh we we 10:14 10 minutes, 14 seconds don't need to wait uh for 300 wheels to get approved. Once these 300 wheels are supplied we can continue supplying. This 10:23 10 minutes, 23 seconds year we are looking at supplying almost 40,000 wheels uh from that plant to the Indian railways. 10:30 10 minutes, 30 seconds So this will start from uh the coming financial year onwards right sir the 40,000 wheels will be reflect 27 onward 10:39 10 minutes, 39 seconds fi 27 onwards okay sir kind ofation level we can expect sir of two lakh so the 40,000 10:46 10 minutes, 46 seconds will be delivered in this financial year itself right? Yes, 40,000 will be delivered in this financial year. 10:53 10 minutes, 53 seconds So I think then it will solve the whole industry problem. It's a right way to understand sir. I don't know about the industry problem. 11:00 11 minutes I think as per our contractual obligation we are supposed to supply 40,000 wheels. We are gearing up to supplying 40,000 wheels in this year. 11:08 11 minutes, 8 seconds Okay sir. Sir uh on the diversification side uh I think we are targeting 10% uh plus kind of revenue from uh PV in the 11:17 11 minutes, 17 seconds next two years also. or trying to be a primary supplier for EV, CV makers and uh uh aerospace allies trials also uh 11:26 11 minutes, 26 seconds begin trying to understand like what kind of uh uh specific defense or aerospace contracts uh we are focusing 11:34 11 minutes, 34 seconds on uh and what kind of uh contracts we are focusing to get uh post aluminium forging commissioning side. 11:42 11 minutes, 42 seconds No already I think uh post commissioning of aluminium 40 we have already started uh bus supplies to EV suppliers EV 11:52 11 minutes, 52 seconds equipment manufacturers globally in terms of the needs of aluminium forings and we are also developing few more aluminium forings from that facility to 12:01 12 minutes, 1 second supply to the CV manufacturers uh globally and in terms of other alloys we are looking at getting into aerospace 12:09 12 minutes, 9 seconds we are we have already set up a capacity to manufacture titanium and other style 3 products. So we are bidding for 12:17 12 minutes, 17 seconds several opportunities within domestic market as well as global market for and but right now we don't have any contract 12:24 12 minutes, 24 seconds per se to basically uh have any realistic numbers to this uh but yes we have already set up a facility. We are 12:34 12 minutes, 34 seconds already in talks with several uh OEMs globally and within India to buy uh higher alloy material basically for aerospace uh activities. 12:47 12 minutes, 47 seconds Yes sir. So on the capacity utilization side the forging utilization it's mentioned nearly 70% uh in Q4 12:55 12 minutes, 55 seconds but if you look at last year Q4 it's 83%. 13:00 13 minutes And but if you look at uh coal forging the capacity utilization is almost 40% kind of range uh like if you could uh uh 13:08 13 minutes, 8 seconds share how they are going to ramp up to 80 to 85% kind of range by FI27. 13:15 13 minutes, 15 seconds Oh, I think uh because last year when you compare you have to also take in account the capacity of 8,000 tons plus 13:23 13 minutes, 23 seconds and other uh addition in terms of overall forging capacity which we have had and basically this this capacity 13:30 13 minutes, 30 seconds utilization is going to happen with order book already in place. We are very hopeful that this year we will have a 13:37 13 minutes, 37 seconds much better utilization uh with the last quarter. And in terms of coal forging we are at 40% because approvals in coal 13:47 13 minutes, 47 seconds forging is mainly to the passenger vehicle sector and this is taking more time in the global market to get 13:54 13 minutes, 54 seconds approvals in place as and when approval gets in place we collection will improve and I uh to be putting a timeline to it 14:03 14 minutes, 3 seconds I think we are not able to do that but we are pretty hopeful by this year end we should be having close to 75 to 80% reduction from coal holding off. 14:14 14 minutes, 14 seconds Uh got it sir. Uh thank you sir. Thank you so much for the detailed uh explanations. I'll do this. 14:21 14 minutes, 21 seconds Thank you. The next question is from the line of Adit from Old Bridge Mutual Fund. Please go ahead. 14:30 14 minutes, 30 seconds Hi. Uh thank you for the opportunity and congratulations on a good set of numbers sir. Uh so my first question is on the 14:38 14 minutes, 38 seconds uh presentation that you have shared. So it has been showcased that 1550 kores of new orders will be executed in FI27. So 14:48 14 minutes, 48 seconds does that include uh castings also or is it only forging standalone business that it is showing? 14:53 14 minutes, 53 seconds No, it is consolidated forging and casting together. 14:57 14 minutes, 57 seconds Okay. So how much of that? So how much castings volume are we expecting this year? Because we will be sitting on 15:03 15 minutes, 3 seconds significant capacities of 78,000 tons and earlier also we have indicated that we have a order book for that. So how much are we expecting this year? 15:12 15 minutes, 12 seconds We are looking at almost uh 85 to 90% utilization costing over the quarter incoming quarter in this year. 15:21 15 minutes, 21 seconds uh 80 to 90% so close to around I would say 65,000 6500 close to close to full utilization I 15:28 15 minutes, 28 seconds think very safe to say close to full utilization this is okay so that's bas so that's great to so 15:36 15 minutes, 36 seconds that's basically around if I take that number then that's basically around incremental 900 crores of revenue from castings I will not put the number to it but we 15:44 15 minutes, 44 seconds are safely looking at almost uh 85 to 90% utilization in the year basis Yeah because I got 15:52 15 minutes, 52 seconds it may not come in the first quarter itself but gradually over next two quarters because approvals and other things are taking some time. So we are 16:00 16 minutes looking at by first half almost to research. 16:04 16 minutes, 4 seconds Sure sure. So I came to that number because of the realizations that has been shared on the presentation. I came to that number on that basis. Uh so what kind of margins can we expect here sir? 16:17 16 minutes, 17 seconds for margin for castings. Yes, casting is I think I think you will be able to tell better in 16:25 16 minutes, 25 seconds the casting will be somewhere around 15 to 16% and in terms of uh what you are asking in terms of topline growth see 62 plus 16:34 16 minutes, 34 seconds is the capacity and we have already produced 26 for the last year but that's the production in terms of sales sales is always lower due to the machining mix 16:42 16 minutes, 42 seconds and uh we expect another 400 to 500 cr of revenue for the full year from the costing on that. 16:50 16 minutes, 50 seconds Okay. 16:51 16 minutes, 51 seconds Okay. Okay. Okay. And uh so okay, that's pretty clear. And uh on the uh on the uh 17:01 17 minutes, 1 second cash flows part. So what kind of capex are we looking at this year? And uh what what is the uh debt net debt target for 17:09 17 minutes, 9 seconds FI27? because I feel most of the investments have been done now and uh and with the good business going ahead 17:17 17 minutes, 17 seconds good business order going ahead uh we should be looking at debt reduction if you can help us understand that 17:24 17 minutes, 24 seconds certainly we are looking at the quite uh significant debt reduction in this year uh on the back of uh promoter funding 17:32 17 minutes, 32 seconds and uh uh and good performance all these so we are looking to reduce the date by at least 400 to 500 more in this Yeah. 17:41 17 minutes, 41 seconds Okay. Okay. Okay. And uh one bookkeeping question sir. So as as mentioned in the presentation uh there is some casting 17:49 17 minutes, 49 seconds business st sitting in the standalone business and some sitting in the uh and other part sitting in the uh console 17:57 17 minutes, 57 seconds part or the subsidiary. So out of the 16,600 tons that we have sold this year how much of that would be in the 18:04 18 minutes, 4 seconds standalone if you can help me. So that expandable business commence just on 31st March commercial production. So Neil from the standalone on FY26. Okay. 18:16 18 minutes, 16 seconds Okay. Okay. Okay. Okay. Got it. Got it. 18:19 18 minutes, 19 seconds Uh and just one last question sir. Uh this is on the other business. So we also started one trailer axle business 18:26 18 minutes, 26 seconds uh a few years back. uh if you can help us give us some update like what kind of revenues have we clocked from the trailer axle business in FI26 and uh 18:36 18 minutes, 36 seconds what's the progression there and what kind of market share and uh target we are looking for in FI27 18:43 18 minutes, 43 seconds I think XL I think we roughly had around 120 crores business uh from there in last year roughly I exact exact figures 18:51 18 minutes, 51 seconds I don't have right now uh we at the market share I think we are at about four or five% market share In 2 years we 18:59 18 minutes, 59 seconds have been able to make a good amount of inroads and satisfaction amount and this being a first B2C business for us. I 19:06 19 minutes, 6 seconds think we are pretty satisfied with the performance of getting into around four to 5% market share and I think this year we are looking at almost doubling this 19:14 19 minutes, 14 seconds business to 250 crores and to market share of about 10%. Market share about 10%. Okay sir. Okay. 19:23 19 minutes, 23 seconds Thank you. 19:27 19 minutes, 27 seconds Thank you. A reminder to all participants to ask any question please press star one. We have next question from Aayush Goer from Kavi Capital. 19:36 19 minutes, 36 seconds Please go ahead sir. 19:39 19 minutes, 39 seconds Yes. Hi sir. Thank you for taking my question. So my first question was regarding the presentation like in this 19:47 19 minutes, 47 seconds quarter's presentation the orders that are split over the next four years for financial year 27 is 2 sorry for this is 19:56 19 minutes, 56 seconds 1,550 and for the like in the last presentation it was 2,200 cr so like 20:04 20 minutes, 4 seconds there's a 600 cr reduction so has any of the orders been revoked or something? 20:11 20 minutes, 11 seconds No. So I how it works? So it was incremental order. So last presentation what you was incremental order for FY26 20:19 20 minutes, 19 seconds which has come. So residual order has come here in FY 27. 20:23 20 minutes, 23 seconds Okay. So basically the order was executed uh early than expected. 20:28 20 minutes, 28 seconds No. So see what we looking at FY 28 again 2800 but 1300 1100 incremental 20:35 20 minutes, 35 seconds over FY 27. You understand that? So there was every year I hope you understand. 20:43 20 minutes, 43 seconds Yeah. Got it. So and like uh with the new added capacity in the press segment how do we expect the utilization to 20:50 20 minutes, 50 seconds improve going forward like quarter on quarter what percentage can we expect? 20:55 20 minutes, 55 seconds No on a full year basis I think it is not uh right for us to say quarteron quarter is very difficult because of the 21:02 21 minutes, 2 seconds approvals and other things but it is safe for us and and better for us to say that by this year end m financial year end f27 21:10 21 minutes, 10 seconds we are looking at almost 85% utilization in our press plant okay that's great and uh one last 21:18 21 minutes, 18 seconds question I had uh like with the rising commodity prices what effect does it has on a PNL P&L like uh when we book an 21:26 21 minutes, 26 seconds order so we take an order on the spot price right no I think it's basically for as earlier 21:34 21 minutes, 34 seconds also expressed all our pricing is based on passons so I think with a quarter lag we pass on all the price increases of 21:42 21 minutes, 42 seconds commodities basically mainly for commodity for us is steel steel is pass on for us every quarter 21:49 21 minutes, 49 seconds and largely margins will be not affected like Now other commodities like consumers like gas and other things are basically which affects our bottom line. 22:00 22 minutes So we that is on a yearly basis we are discussing with customers and I think most of our customers uh agree with the current scenario because of this 22:09 22 minutes, 9 seconds geopolitical issue and uh we are expecting uh compensation on account of all these geopolitical issues in terms 22:18 22 minutes, 18 seconds of price increases to come uh to us soon. 22:23 22 minutes, 23 seconds Okay. Thank you so much sir. That's all from my sir. Thank you. 22:28 22 minutes, 28 seconds The next question is from Kiran Nayak from Modi Finap. Please go ahead. Thank you for giving me an opportunity sir. 22:35 22 minutes, 35 seconds Sir can you give me a rough idea what will be the revenue growth in FI27. 22:41 22 minutes, 41 seconds No, I think uh we will not be able to give any number to FI27 but with the current order book and with the current 22:48 22 minutes, 48 seconds uh capacities in place, we are looking at continued growth trajectory and we are looking at a healthy growth in FI27. 22:58 22 minutes, 58 seconds Okay. and a beta margin for 27 it will continue to I think uh with what uh if we have seen quarter on quarter 23:06 23 minutes, 6 seconds 200 basis points we have improved in terms of our margins and I think uh with the current scenarios in place we are 23:14 23 minutes, 14 seconds looking for a healthy growth in both our top lines and the bottom line of the company okay thank you sir 23:23 23 minutes, 23 seconds thank you next question is from Dasi Javiri from crown please go ahead. 23:31 23 minutes, 31 seconds Uh hello uh good evening sir. Thank you so much for taking your question sir. Uh firstly congratulations on the great of 23:39 23 minutes, 39 seconds resulture. Uh so just wanted to uh like confirm like in terms of casting what you're saying we'll be at near full 23:46 23 minutes, 46 seconds utilization. So did I hear correctly we could do nearly 900 K of additional revenue from that sir? 23:54 23 minutes, 54 seconds No no I we have not put any number to it. IT has clarified all out of the 70 24:01 24 minutes, 1 second 700 uh 70,000 oct of casting capacity already current utilization we are getting a significant revenue additional 24:10 24 minutes, 10 seconds uh casting capacity which has uh come in the uh by end of March this is going to create a at the current commodity levels 24:18 24 minutes, 18 seconds of 400 to 500 crores revenue in the coming years. 24:22 24 minutes, 22 seconds Okay. So the new March capacity would be around 400 500 K and uh sorry but I'm a bit new to the company. So when we talk 24:30 24 minutes, 30 seconds about the wheel sets so we set we expecting to do around 30,000 set. So what are the generic economics of it 24:38 24 minutes, 38 seconds like is this on the similar margins that you know that our company does on a consolidated level and and also uh in 24:46 24 minutes, 46 seconds terms of what is the selling price can you help me with that sir? I cannot give you the selling price but I can tell you 24:53 24 minutes, 53 seconds that uh the wheels are uh in a similar trajectory of the forging business we do right now and it is a new capex and this 25:01 25 minutes, 1 second year we are going we have set up a capacity for 2 lakh 30,000 wheels this year railway oftake guarantee is for 25:09 25 minutes, 9 seconds 40,000 wheels which we are getting ready to supply in this financial year. 25:14 25 minutes, 14 seconds Okay. Okay. So is this like on a broad basis that incremental revenue would be how much from the wheelchair sir? 25:22 25 minutes, 22 seconds So I think selling price it is right now very difficult for me to tell you because we will need because the contractor was awarded two years back. 25:31 25 minutes, 31 seconds So we'll need to have a realtime pricing done with two years of inflation and other things to capture and get to the 25:38 25 minutes, 38 seconds new pricing. So I will not be able to give you exact number right now but we should be anything between 400 to 450 crores roughly in terms of revenue from the wheel plant. 25:49 25 minutes, 49 seconds Okay. Okay. No, fair enough. That's that that's that's fair enough. Yeah. Uh yeah, that's it from my Thank you so much. 25:56 25 minutes, 56 seconds Thank you. The next question is from Sunonny from MK Ventures. Please go ahead. 26:03 26 minutes, 3 seconds Thank you for uh taking my question and uh congratulations on a good set of numbers for the quarter. Uh so my first 26:10 26 minutes, 10 seconds question is on the overall peak uh revenue potential. So we've uh almost now expanded to about four lakh tons of 26:18 26 minutes, 18 seconds capacity. Uh so assuming a normalized utilization uh and adjusting for uh seasonality in the business, what is the 26:27 26 minutes, 27 seconds peak volumes or peak revenue? uh if you can give some color either on one of them uh over the next two to three years 26:35 26 minutes, 35 seconds we can achieve with this current capacity that we have already set uh set in place. No, I think uh Suni putting a 26:44 26 minutes, 44 seconds revenue number I think it is difficult depend revenue number is absolutely dependent on the commodity pricing but in terms of utilization we are looking 26:52 26 minutes, 52 seconds at almost 80% utilization this year in terms of our capacity means uh close to around go to around 3 lakh 50,000 tons 27:00 27 minutes of overall uh forging and casting put together in terms of our utilization and 27:07 27 minutes, 7 seconds uh I think that's that's a ballpark we are working Got it. Uh got it. And uh second 27:14 27 minutes, 14 seconds question is uh in terms of the domestic and export mix. So uh this year uh our domestic uh business performance has 27:23 27 minutes, 23 seconds been uh very strong with strong CV demand. Uh and the mix which used to be about 40% about 40 42% export and 58 to 27:33 27 minutes, 33 seconds 60% domestic has seen a swing towards higher share of domestic. So uh based on 27:40 27 minutes, 40 seconds the current visibility uh in terms of the order book or uh customer discussions that you are having, how do 27:47 27 minutes, 47 seconds you see this uh domestic export mix uh moving over the coming one or two years and how how does the domestic export mix 27:56 27 minutes, 56 seconds impact the overall margins? Uh does does higher export mean better margin profile and how is the outlook on that? 28:06 28 minutes, 6 seconds So I think uh with the current trend in the overall overseas market and with the new order wins in the European market, 28:13 28 minutes, 13 seconds we are expecting in next two years uh our export mix to significantly improve and I think uh historically which was 60 28:22 28 minutes, 22 seconds 40 I think we are looking at going above 40 in terms of our export uh volumes in the overall scenarios current scenarios 28:31 28 minutes, 31 seconds and oxport is always highly higher reminerative and the domestic market. So we are very confident with the current 28:39 28 minutes, 39 seconds order book and with whatever is playing around in terms of the overall global market and the demand side. We are very 28:45 28 minutes, 45 seconds confident that our uh margins also will considerably improve going into coming 28:52 28 minutes, 52 seconds quarters but it may not happen immediately but into going on to next eight quarters. So roughly two years our margins should be significantly improved 29:01 29 minutes, 1 second with uh export volumes better than previous of 40%. 29:07 29 minutes, 7 seconds Got it. Got it. Uh uh that's very helpful. And uh my last question is uh around the capacity and the capeex. So 29:17 29 minutes, 17 seconds basically uh our uh our utilization in the last quarter was around 65 70% and 29:24 29 minutes, 24 seconds we have already expanded capacity. Uh so how do you see the capeex intensity for 29:30 29 minutes, 30 seconds say FI27 and FI28 because we spent about 800 crores plus of capeex over the last 29:37 29 minutes, 37 seconds two years. How will that number look like uh say in the next two years? S this year we are looking at more of 29:45 29 minutes, 45 seconds consolidation. I think with the contribution in JV I think we are not looking at K and maintenance we are not looking at KEX of more than 300 to 400 29:54 29 minutes, 54 seconds crores maximum to the tune of 400 crores that also maybe most of may get into only value ads and uh our contribution 30:01 30 minutes, 1 second to jo the joint venture and most of our thrust will be in terms of debt reduction. Lalita has already given a ballpark of close to 400 to 500 crores 30:11 30 minutes, 11 seconds of debt reduction over this financial year. Uh I think this year by this financial year end we should be anything above 80% to 85% in terms of our 30:20 30 minutes, 20 seconds existing capacity utilization from wherein in FY 28 we are looking for further capex to grow the business into the next level. 30:29 30 minutes, 29 seconds Got it. Got it. 30:31 30 minutes, 31 seconds We have not yet basically freezed any capex plan for FI28 right now. So still we are talking to customers and getting 30:40 30 minutes, 40 seconds their feedback in terms of what next to do in terms of the overall capacity requirements. 30:45 30 minutes, 45 seconds Got it. And in terms of our cash outflow uh whatever contribution had to go for the JV has that been paid for or there 30:53 30 minutes, 53 seconds is more uh equity that is yet to be some some more parties left I think can you get the exact number? 31:00 31 minutes Yeah about 54 will further go this year. Got it. Got it. Thank God. 31:06 31 minutes, 6 seconds So taking that 50 crores uh Sunonny that the ballpark number is around close to 400 crores of capex is taken into account of that 50 crores. 31:16 31 minutes, 16 seconds Got it. This is uh very helpful and uh all the best for the coming quarters and the year ahead. Thank you so much. 31:26 31 minutes, 26 seconds Thank you. The next question is from Kumar Sora from Scientific Investing. Please go ahead. 31:34 31 minutes, 34 seconds Hello. Am I audible? Yes, you are. Yes, you're audible. 31:37 31 minutes, 37 seconds Yeah. Uh sir, uh uh I have one question on the aluminium capacity which is there. Uh in terms of realization or margin, uh how is this business? 31:50 31 minutes, 50 seconds Realization is commodity price itself is close to 400 rupees per kg. So obviously realization per ton is going to be 31:58 31 minutes, 58 seconds always higher because of the commodity pricing. margins are close to 14 to 15% uh at the absolute numbers. 32:06 32 minutes, 6 seconds Oh okay. Okay. So almost similar to the our current business. So it should not overall in terms of contribution I think is much higher because uh 14 to 15% you 32:15 32 minutes, 15 seconds get on the 400 rupees per kg or so. So overall I think contribution is much higher than the current ones. 32:23 32 minutes, 23 seconds Okay. Okay. And uh sir I think uh currently our all the total fixed asset is around 4,000 cr and historically I 32:33 32 minutes, 33 seconds think if we take a blended fixed asset turnover it's somewhere around 1.5 1.6 uh which takes us to almost 6,000 cr 32:40 32 minutes, 40 seconds revenue I'm not looking for exact number but ballpark kind of number. So like uh do you have any plans that when you want 32:47 32 minutes, 47 seconds to utilize this full capacity given we have done with major capex and now you know this time to reap all the capex 32:54 32 minutes, 54 seconds which we have invested. So we are looking at during this year I think by third quarter or fourth quarter to reach 33:00 33 minutes close to 80% 80 85% plus utilization in terms of our overall capacity and sir historically when we shift from 33:09 33 minutes, 9 seconds let's say a you know say 70% kind of utilization number to a peak utilization number historically we have had higher 33:16 33 minutes, 16 seconds margins so do you see possibility I know you have said that uh and this quarter also we have done well on margin and you know we are expecting it to improve but 33:25 33 minutes, 25 seconds do Do you see possibility of going back to the previous high is if utilization peak margins? 33:31 33 minutes, 31 seconds I will not put a number to it but we are very confident of continuing to improve in terms of margins and I think that is what best we can guide for right now and 33:40 33 minutes, 40 seconds uh we continue to work on margins and I think uh rest I think in terms as utilization improves as we start uh 33:48 33 minutes, 48 seconds delivering the numbers margins are going to be much better than what is expected. 33:55 33 minutes, 55 seconds Great. Great and sir I think in our business casting and forging energy is a major cost item and giving whatever is 34:02 34 minutes, 2 seconds buckling globally in terms of you know the whole energy thing. So do you see a major pressure on the raw on the extent 34:10 34 minutes, 10 seconds side because of energy or like how do you see it panning out in next week? 34:14 34 minutes, 14 seconds Raw material is completely pass on for us. We don't one quarter lag it's completely pass on for us. So we don't get affected by the raw material 34:23 34 minutes, 23 seconds increase but in terms of other consumers major consumers in terms of commodity is gas for us post the raw material. uh to 34:32 34 minutes, 32 seconds my earlier question also I've answered the the current geopolitical issues we have gone back to the customers in terms of four major clauses and we are very 34:40 34 minutes, 40 seconds pretty hopeful that the customer will compensate us to the maximum possible in terms of the gas energy price increase 34:48 34 minutes, 48 seconds great thank you I'll come back in the queue wish you all the best thank you the next question is from 34:56 34 minutes, 56 seconds Vinil Sha from Dalalan brocha please go ahead uh hello sir Good evening. Thank you for the opportunity. Uh so my question was 35:05 35 minutes, 5 seconds was uh with respect of uh realization for our uh forging. So if you take our uh annualized capacity utilization, we 35:13 35 minutes, 13 seconds are already close to 70 or 74% capacity realization as per our presentation if you take the annualized instant 35:21 35 minutes, 21 seconds capacity. Uh but yet our uh realizations have been poor than the quarter 4 of Fi 2025. So even if we move forward with a 35:30 35 minutes, 30 seconds higher capital utilization, how do we plan to improve our realization of rupees lakhs per turn? So no I think realization also is affected by the 35:38 35 minutes, 38 seconds commodity price. I think realization is not absolutely what we realization is directly linked to the commodity price and if the whole year has been you must 35:47 35 minutes, 47 seconds have seen that raw material price has continued to decrease. So with the decreasing trend of raw material pricing pricing visav FI25 35:57 35 minutes, 57 seconds that is the effect which we have had in terms of product mix I think we have had a much better product mix uh in the 36:04 36 minutes, 4 seconds second half of the year of this financial year. So I think we have done much better than what presumably would have been with the current commodity 36:12 36 minutes, 12 seconds price uh if the product miss would not have been what it is right now. uh also because my confusion is because our 36:20 36 minutes, 20 seconds export realization have increased from 1.77 lakhs to 1.85 both the things I think uh exports 36:28 36 minutes, 28 seconds realizations are always much better and if you see the previous year exports were higher than this current financial 36:34 36 minutes, 34 seconds year. So as a percentage so export as the export grows the automatically the realization overall realization is going 36:42 36 minutes, 42 seconds to be much better than what uh it is currently there. 36:47 36 minutes, 47 seconds All sir, thank you. That's was that's all from my sir. Thank you. The next question is from Mr. Sak from Saguri Cap. Please go ahead. 36:57 36 minutes, 57 seconds Hi, I'm audible. Yes, you are sir. 37:00 37 minutes Yeah. So uh one first question is pertaining to the non-out order. So almost uh 250 odd crores uh order have 37:08 37 minutes, 8 seconds come from energy segment. So can you uh just explain what exactly uh what kind of uh order is this within the energy space? 37:19 37 minutes, 19 seconds Milish can you answer this question please? So basically as you know energy storage has become uh the latest trend 37:26 37 minutes, 26 seconds in the market and uh we have received a lot of orders from uh companies which are very doing very good in energy space 37:34 37 minutes, 34 seconds in the North America market and they have a very ambitious plans with regard to the energy storage devices and these 37:42 37 minutes, 42 seconds devices actually require a lot of coding and casting the mix in order to go forward there. So we have received a 37:49 37 minutes, 49 seconds good order book on account of it and that's what we have reflected in the order books. 37:55 37 minutes, 55 seconds Okay, thanks for the clarification. So sir uh last time uh when we talked about you know the turnaround within the US business. So we talked about largely the 38:03 38 minutes, 3 seconds new customers or the new wins which were uh helping us you know come back slowly on growth and that also shows up in the numbers almost kio there has been a 38:12 38 minutes, 12 seconds growth now going for FY27 are our with the tariff behind us now and as 38:19 38 minutes, 19 seconds also talked about you know coming revival of uh demand as far as classic trucks is concerned. So do you think 38:27 38 minutes, 27 seconds FI27 could be a normalized year from a US export or a North America exports standpoint or it could be a even a 38:35 38 minutes, 35 seconds growth year given that you know Mexico is uh I think likely to go live in a couple of weeks. 38:41 38 minutes, 41 seconds I think it will be a growth year with his previous year in terms of our North America performances sir. 38:48 38 minutes, 48 seconds That's great to hear sir sir. Now another question that I have is pertaining to uh I think mainly for uh 38:54 38 minutes, 54 seconds CFO sir there is a uh know given in the in the notes of the uh the uh the 39:02 39 minutes, 2 seconds results there has been some u uh loss provisions that we have made with uh tariffs uh that some of our customers 39:10 39 minutes, 10 seconds have had to bear. So can you uh explain something pertaining to the ECL uh what exactly is this? 39:18 39 minutes, 18 seconds See, so we have made a provisioning of ECL for 42 volt in this quarter as basically this is in light of income of 39:27 39 minutes, 27 seconds electricity duty which we got order in the last quarter and the income has been recognized as exceptional income. So but 39:34 39 minutes, 34 seconds we did not wanted to carry it into our profit and so on a prudent basis considering the current uh economic scenario and whatever the volatility we 39:43 39 minutes, 43 seconds have in the uh global environment we just provided as ECL on our receivers for this 42 amount. This amount is 39:51 39 minutes, 51 seconds totally receivable but still uh we got this headroom to provide for this which may will help us in future only. 39:59 39 minutes, 59 seconds Okay. Thanks for explanation. Now coming back to the the shipping time. So how's the shipping time is it now back to normal especially for the u our US side 40:08 40 minutes, 8 seconds or is it still on the higher side and how's the cost uh know for shipping cost right now shipping cost has gone up by about 15 to 40:16 40 minutes, 16 seconds 20% and the days have increased by almost 15 to 20 days okay so sir because last time uh when this happened a lot of our uh floating 40:25 40 minutes, 25 seconds inventory ended up becoming on our books so right now how is that floating inventory right now is it in line or do you I think uh uh that should be fine uh going forward. 40:36 40 minutes, 36 seconds It is in line. 40:38 40 minutes, 38 seconds Okay. And sir, do we have any West Asia exposure uh in terms of clientele or revenue? No, no revenue and no exposure. 40:46 40 minutes, 46 seconds Okay, sir. Anna, thanks sir. Last question is you know you have elaborated a bit on the titanium and that those kind of alloys where RK forging is 40:54 40 minutes, 54 seconds foring into and it's good to know because again uh aerospace is gaining a lot of traction. So uh but these are also long jession period because 41:02 41 minutes, 2 seconds approval times are quite longer. So when do we think that you know this would end up say adding something substantial to our top line or at least in the order 41:10 41 minutes, 10 seconds book will start reflecting say in the order book. So any sense or color on that? I think in terms of order book I think by this financial year end it will 41:18 41 minutes, 18 seconds start reflecting in our order book and uh but uh in terms of our revenue in terms I think it will take uh 41:25 41 minutes, 25 seconds additionally I think 12 to 24 months because these are long lead items to make also and get approvals. So we are 41:33 41 minutes, 33 seconds we are not looking anything in terms of our revenue before FY29. 41:38 41 minutes, 38 seconds Okay sir. Now com specifically to the EV segment because it is now kind of making some sort of a comeback right both across Europe as well as even US had a 41:46 41 minutes, 46 seconds reasonable quarter. So now how are those EV focused order or revenue looking up? 41:52 41 minutes, 52 seconds So are we uh looking at say much better contribution from them going forward. 41:58 41 minutes, 58 seconds I think EV is performing extremely well for us both in the domestic market and overseas market and I think as our 42:06 42 minutes, 6 seconds diversification strategy and as well as our dependence on IC uh to decrease the same we are already working very aggressively to improve our passenger 42:14 42 minutes, 14 seconds vehicle portfolio which is mainly constituting of EV segments only. So I think we have already guided for a 10% 42:22 42 minutes, 22 seconds uh revenue in like uh 2 years time from to come from uh basically passenger vehicle segment. 42:30 42 minutes, 30 seconds Okay. So 10% PV is synonymous with 10% EV at an overall level. Is that is that a fair understanding? Fair understanding. 42:37 42 minutes, 37 seconds Okay sir. Thanks sir for responding and best of luck for the coming quarters. 42:43 42 minutes, 43 seconds Thank you. The next question is from Kiran K from Nightstor Capital Management LLP. 42:50 42 minutes, 50 seconds Please go ahead. 42:52 42 minutes, 52 seconds How much revenue did we generate from gas and under the carriage for the pub? 42:59 42 minutes, 59 seconds Repeat the question please. 43:01 43 minutes, 1 second How much revenue did we generate for the railway assembled under carriage for the full year? 43:09 43 minutes, 9 seconds We will not be able to give you exact uh component by component revenue achievement but we have we have achieved a significant portion railway business 43:17 43 minutes, 17 seconds as an overall 7.5% is overall in terms of our railway business which is performing and we are looking at double 43:24 43 minutes, 24 seconds digit almost to achieve the number by this year for railways. Okay. Thank you. 43:33 43 minutes, 33 seconds Thank you. The next question is from Kiran Nayak from Modi Fin Cap. Please go ahead. Sir, thank you for giving me an 43:42 43 minutes, 42 seconds opportunity again. Sir, can you tell me from where you are buying aluminium which is a raw material for forging? 43:49 43 minutes, 49 seconds We are buying from Indelo. 43:51 43 minutes, 51 seconds Indelo only one supplier you have or yeah you import also. 43:55 43 minutes, 55 seconds We we basically are customer directed by Okay. Okay. Thank you. 44:05 44 minutes, 5 seconds Thank you. The next question is from Kunal Bharta from Dalala Grocha Stocks Broken Limited. Please go ahead. 44:13 44 minutes, 13 seconds Yeah. Hi sir. Uh thank you for the opportunity sir. I just had a clarification question. So you mentioned that this this time around you'll be 44:22 44 minutes, 22 seconds having almost an 80% utilization on your capacities of 350,000 44:29 44 minutes, 29 seconds tons. So but how what is your uh say your um target which you are expecting 44:35 44 minutes, 35 seconds in terms of the overall sales volume because uh volume sales volume I think every quarter on 44:44 44 minutes, 44 seconds quarter you will see significant improvement but uh I think in terms of percentage is very difficult to say but 44:51 44 minutes, 51 seconds I we are very confident whatever we'll make we'll be able to sell that okay so because even uh in in a large 44:59 44 minutes, 59 seconds conference call if I'm not wrong. Um we had mentioned an upper limit of 10 to 15% kind of growth for FI27 and FI28 in terms of a CAGR. 45:10 45 minutes, 10 seconds So uh yeah with the current order book we are very confident of surpassing uh we are not trying to put any number to it right now 45:18 45 minutes, 18 seconds but I think uh with the current geopolitical issue going on it is a risk also but with the current order book we 45:25 45 minutes, 25 seconds are very confident of growing. So but with the capacities in place we are looking at achieving those tonnages in terms of our production plans and we are very confident to sell those. 45:39 45 minutes, 39 seconds Okay. Okay. So um it's fair to assume that we'll be growing high uh upwards of the 15% number. I will not put a number 45:48 45 minutes, 48 seconds to it but I think uh we are looking at a a decent and very good growth in FI27. 45:57 45 minutes, 57 seconds Okay. And and so ballpark on an 80% kind of uh utilization levels uh what is the 46:05 46 minutes, 5 seconds kind of uh uh leverage in terms of margins that kicks in assuming every uh other thing remains status quo. 46:15 46 minutes, 15 seconds So I think the current margins uh which we have been able to achieve in the fourth quarter I think now it's here to stay and we are doing going to do better 46:24 46 minutes, 24 seconds margins than what we have achieved right now in this quarter. So I think as the capacity utilization economics of growth continue to scale and if everything 46:32 46 minutes, 32 seconds remains as where it is and we are able to pass on the energy price increases which have happened we should be at least 100 to 150 basis points uh better 46:41 46 minutes, 41 seconds than what we have done right now. But it all depends on whether we have been we are able to pass on the energy price increases. 46:48 46 minutes, 48 seconds Okay. But you would have some fair bit of an idea from your current uh uh months export say in April May uh have 46:57 46 minutes, 57 seconds you been able to uh get those better or a higher realization? 47:02 47 minutes, 2 seconds We have not yet been able to pass on the energy price increases. We have already discussions and I think discussions are in advanced stage. So beyond that I 47:10 47 minutes, 10 seconds think it's very difficult for us to say anything that whether by when we will be able to get whatever we will get we will be able to get from 1 April onwards but 47:19 47 minutes, 19 seconds exactly how much and by when it is very difficult for because it is industrywide which is it is going to happen it's not going to be happening for us as an 47:27 47 minutes, 27 seconds isolated case but uh whatever the customer approach OEM approach takes it is it is to be happening in the 47:34 47 minutes, 34 seconds industrywide space so I think we'll wait for some time before we can comment on it. 47:41 47 minutes, 41 seconds Okay. Okay. answer my final question. I I'm not asking you for a particular number. uh but uh in terms of uh volume 47:49 47 minutes, 49 seconds on the export business side uh looking at the current uh situation uh how has been say uh the month of April which has 47:57 47 minutes, 57 seconds already gone by was it better than March or uh things are not uh I think I think I will not be able to give you a reflect on the anything on 48:06 48 minutes, 6 seconds the current numbers but I can only say this year FI27 export volumes are going to come back and it's is extremely 48:13 48 minutes, 13 seconds strong so we are very confident of uh doing much better exports than our previous uh in terms of overall mix of 48:21 48 minutes, 21 seconds uh percentage to sales uh we are going to do much better than what we have done in previous years and quarters. 48:30 48 minutes, 30 seconds Okay. Okay. Sounds good. Thank you sir. Thank you so much. Thank you. The next question is from Mr. 48:37 48 minutes, 37 seconds Kusher from Broking. Please go ahead. 48:46 48 minutes, 46 seconds Hello. Hello. Hello. 48:49 48 minutes, 49 seconds Yeah. Uh, are there any plans to increase ring rolling capacity? 48:56 48 minutes, 56 seconds No, I think there is no plans right now in this year, this financial year to increase the ring rolling capacity. 49:09 49 minutes, 9 seconds Okay. Thank you, sir. Thank you. The next question is from Mr. 49:16 49 minutes, 16 seconds Adit from Oldbridge Mutual Fund. Please go ahead. 49:20 49 minutes, 20 seconds Uh so just one clarification uh the orders that you have won of 323 kores on 49:27 49 minutes, 27 seconds the domestic CV part on the on the CV part how much of that would be domestic and how much of that would be export 49:39 49 minutes, 39 seconds you repeat the question please not yeah yeah I was asking the 320p order that we have won on the CV side what 49:48 49 minutes, 48 seconds would be the split between domestic and exports against the 323 cr the CV would be more 49:55 49 minutes, 55 seconds than 50% in the CV more than 50% of the it is export and around 50% is from the do 50:03 50 minutes, 3 seconds okay thank you that's it thank you uh we have the next question 50:11 50 minutes, 11 seconds from Mr. Kusher from mission broken please go ahead Mr. question. Hello. 50:19 50 minutes, 19 seconds Yes sir, you are audible. Please go ahead. 50:22 50 minutes, 22 seconds Yeah. Yeah. Uh just again uh regarding ring ruling as I'm seeing here it's at 121% utilization. 50:30 50 minutes, 30 seconds So uh it's does it affect in any way uh negatively uh crosses the uh capacity? 50:39 50 minutes, 39 seconds No basically it is 121% you have seen if you see the history also I think ruling has been operating 50:47 50 minutes, 47 seconds at more than 100% as always and uh it does not affect uh in terms of the life of the equipment or in any way. 50:58 50 minutes, 58 seconds Thank you sir. Thank you. 51:04 51 minutes, 4 seconds As there are no further questions in the queue, I now hand the conference over to management for closing comments. 51:11 51 minutes, 11 seconds Over to you, sir. 51:13 51 minutes, 13 seconds Thank you. We would like to thank all for taking out the time and joining your earnings call. We hope we have answered all your queries and for your 51:21 51 minutes, 21 seconds satisfaction. We would like to further inform that get in touch for us or CDR if you have further information required. We look forward to interacting 51:29 51 minutes, 29 seconds again next quarter. Thank you again very much for talking to us. Thank you. 51:35 51 minutes, 35 seconds Thank you on behalf of 3 361 Capital Market Private Limited. That concludes this conference. Thank you for joining 51:42 51 minutes, 42 seconds us and you may now disconnect your lines. Thank you.