Rathi Steel And Power Ltd — Q3 FY26

Rathi Steel And Power Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=ofr2lVAlokA Published: 2 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to Rati Steel and Power Limited Q3 and 9month FI26 resource conference 0:08 8 seconds call hosted by Kan Advisor Private Limited. 0:13 13 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 0:20 20 seconds concludes. Should you need assistance during the conference call, please signal an operator by pressing star then 0:28 28 seconds zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over 0:35 35 seconds to Mr. Par Acharia from Kiran Advisers Private Limited. Thank you and over to you sir. 0:42 42 seconds Thank you. Good evening everyone. On behalf of Kin Advisor Private Limited, I welcome you all to the conference call 0:49 49 seconds of Sarati Steel and Power Limited. From the management team, we have Mr. Rajes Chen, president, 0:57 57 seconds Mr. Pushal Araal, AP of growth and strategy of the company. With that, now hand out the call to Mr. Rajes Chen for the opening remarks. Over to you, sir. 1:06 1 minute, 6 seconds Thank you. Thank you. Hello. Yeah. Good evening. 1:14 1 minute, 14 seconds Yeah. Good evening ladies and gentlemen and a very warm welcome to all the investors, analysts and stakeholders 1:21 1 minute, 21 seconds joining us today for the Q3 and 9 months FI26 earning call of Rati Steelen Power Limited. We sincerely sincerely 1:28 1 minute, 28 seconds appreciate your continued confidence and engagement with the company. Rati Steel and Power Limited represents a legacy of 1:35 1 minute, 35 seconds over five decades anchored in credibility, methological excellence and an unwavering commitment to the quality. 1:43 1 minute, 43 seconds The rati name has been synonymous with strength strength since 1940 and today we advance that heritage through a 1:51 1 minute, 51 seconds modern technologydriven and sustain sustainability focused manufacturing approach. Our approximately 12.5 acres 2:00 2 minutes integrated facility in Ghabas operates with a steel melting capacity of around 85,000 tons perm and a rolling capacity 2:08 2 minutes, 8 seconds of two lakh tons perm enabling the scale efficiencies operational resilience and disciplined cost optimization. 2:18 2 minutes, 18 seconds A key technological differentiator is our direct bullet charging technology in stainless steel wire rod manufacturing 2:25 2 minutes, 25 seconds which enhances energy efficiency reduces handling losses and strengthens cost competitiveness. Our diversified 2:33 2 minutes, 33 seconds portfolio includes stainless steel bots, wrote bars and TMT bars reinforcing our 2:40 2 minutes, 40 seconds credibility into infrastructure and high specification construction project. 2:45 2 minutes, 45 seconds Green steel remains center central to our strategic orientation. Our rec recycling based circular steel making 2:53 2 minutes, 53 seconds model sign significantly lowers carbon intensity compared to the conventional primary rules aligning with India's 3:03 3 minutes, 3 seconds decarbonization priorities and rising ESGdriven procurement standards growing 3:09 3 minutes, 9 seconds demand of F5T and F550D grades CMD bars from leading real estate and infrastructure players across MCR 3:18 3 minutes, 18 seconds represents a compelling opportunity for the premium sustainably sustainably manufactured receive. 3:26 3 minutes, 26 seconds Coming to our financial performance, Q3 FI26 reflects strong operational execution. Total income stood at rupees 3:33 3 minutes, 33 seconds 160.09 crores up around 51% year-on-year basis. AITA was 6.41 crores. Rest 38% 3:42 3 minutes, 42 seconds growth while PET rose to 1.91 crores up 262%. 3:49 3 minutes, 49 seconds For 9 months FI26 total income reached to 47 so 472 crores reflecting 32.67% 3:57 3 minutes, 57 seconds growth over the corresponding period last year AITA stood at 19 crores up 16.96 4:04 4 minutes, 4 seconds with P at 5.42 photo crores improved capacity utilization cost efficiencies and a balanced product mix supported 4:13 4 minutes, 13 seconds this performance we all commenced Q4 with with our highest monthly fields of approximately 77.45 crores from the 4:21 4 minutes, 21 seconds valuable subsidy the broader industry environment remains supportive the union 4:27 4 minutes, 27 seconds 2026 has allocated 12.2 to max cr towards capital expenditure strengthening demand across railways 4:35 4 minutes, 35 seconds infrastructure energy and urban development under the specialty skill PLI scheme 80 bike worth rupees 1118887 4:45 4 minutes, 45 seconds crores have been signed with incentives ranging from 4 to 15% for high carbon steel production. Additionally 20,000 4:54 4 minutes, 54 seconds crores has been earmarked for carbon capture and green steel transition reinforcing the policy push towards 5:02 5 minutes, 2 seconds sustainable methodology. On the trade front, India EU FDA is moving tariff on 5:09 5 minutes, 9 seconds most iron and steel products towards zero with over 70% of the tariff lines seeing immediate duty elimination. Sim 5:17 5 minutes, 17 seconds similarly under under under the recalibrated India US trade framework reciprocal tariffs have been reduced 5:24 5 minutes, 24 seconds from around 15 50% to 18% across a broad industrial basket. These measures enhance the competitiveness of 5:33 5 minutes, 33 seconds engineering goods machinery and automative exports. This in turn is expected to stimulate incre in incremental domestic demand for 5:42 5 minutes, 42 seconds highgrade and stainless steel products across the value chain. 5:47 5 minutes, 47 seconds The artist power limited stands at the intersection of legacy technology technological capability and 5:55 5 minutes, 55 seconds environmental responsibility with a strength stainless steel portfolio and a firm commitment to energy efficient and 6:03 6 minutes, 3 seconds green steel production. The company is structurally aligned with India's infrastructure expansion and sustainable industrial growth. Thank you once again 6:12 6 minutes, 12 seconds for your continued support. I now open the floor for questions. Thank you so much. 6:21 6 minutes, 21 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone 6:29 6 minutes, 29 seconds telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are 6:37 6 minutes, 37 seconds requested to use the handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. 7:04 7 minutes, 4 seconds The first question is from the line of SAT Kolani from Kubir Advis. Please go ahead. 7:11 7 minutes, 11 seconds Yes. Uh uh thank you sir for opportunity. So I trans the venue has been strong in 7:20 7 minutes, 20 seconds sorry to interrupt Mr. Kolani. Can you please speak a little louder? Am I audible now? H yes please. 7:28 7 minutes, 28 seconds I I could see the revenue strong in quarter three and 9 months. So I just wanted to know the detail product wise 7:35 7 minutes, 35 seconds revenue and volume breakup for stainless via rods blet stainless rebars and carbon dear and uh it would also help if 7:44 7 minutes, 44 seconds you could explain this mix has evolved over the last four quarters 7:54 7 minutes, 54 seconds uh we will we will send you the details which is not the bifocation is not with 8:02 8 minutes, 2 seconds us right now and uh we will definitely will send you the details bifiration in terms of uh 8:09 8 minutes, 9 seconds carbon as well as okay 8:15 8 minutes, 15 seconds and also the on the balance side balance so I just wanted to know the current gross debt and working capital 8:23 8 minutes, 23 seconds borrowings as of 23 economics what is the blended borrowing cost today as compared to two years ago Then 8:33 8 minutes, 33 seconds uh two years ago we were with the in that debt reflexing mode. So that time the cost was much much higher. 8:43 8 minutes, 43 seconds Now uh as as on date the gross debt will be 43.550 crores 8:53 8 minutes, 53 seconds right and and the cost of debt is going down and we are in the we are making all efforts to go down further as compared 9:02 9 minutes, 2 seconds to the restructured uh ROI at the at the time of researching it is much much slower as rate 9:12 9 minutes, 12 seconds which which you must things from the real also. 9:17 9 minutes, 17 seconds If you if you see that cost as on March 24 and the debt cost that amount or interest cost add on date it is much much lower. 9:28 9 minutes, 28 seconds I can see so in 2024 the debt cost was high now 9:36 9 minutes, 36 seconds that debt cost has gone down. We are making all of us to uh make it uh down further. We have appro we are 9:43 9 minutes, 43 seconds approaching lenders uh other lenders to for at a high lower rate of interest 9:54 9 minutes, 54 seconds I should see historically your big market has been in the range of four to 5% but like where do you see these 10:01 10 minutes, 1 second margins closing for this financial year 26 what is the realistic sustainable band for even fa 27 and fa 28 assuming 10:11 10 minutes, 11 seconds better realization and higher stainless mix. 10:16 10 minutes, 16 seconds Can you come again? I'm seeing uh your margin has been in the range of uh 4 to 5% but where do you see this margin 10:24 10 minutes, 24 seconds closing for 26 uh closing and 27 and 28 assuming we expect a better utilization 10:32 10 minutes, 32 seconds and higher efforts if if there will be better regulation and the market uh is conducive then it 10:39 10 minutes, 39 seconds will definitely go up because we are making uh various changes in our existing plant by which uh we We are trying to reduce our direct cost. 10:51 10 minutes, 51 seconds So it will be um uh much subject to market conditions it will be higher 11:01 11 minutes, 1 second and and with the higher cap with the higher capacity utilization margins are differently. 11:09 11 minutes, 9 seconds There is there is always a fixed fixed cost element which never increases with the volume. 11:21 11 minutes, 21 seconds I I could see that your other expenses has increased from 17 uh succ 11:32 11 minutes, 32 seconds if if you check our company in uh December 2024 we were uh not 11:41 11 minutes, 41 seconds operating the TNT mill right but in December 11:47 11 minutes, 47 seconds 25 quarter we uh we have restarted the TMT mill operations in April 2025. 11:56 11 minutes, 56 seconds So so uh uh when we restart the mill there is always a power cost there is 12:04 12 minutes, 4 seconds always a consumer cost which was which was not there in 2024. 12:14 12 minutes, 14 seconds Okay. 12:17 12 minutes, 17 seconds So that's the reason in actual terms it is higher as compared to 2024. 12:29 12 minutes, 29 seconds Oh uh in terms of scrap sourcing how diversified is your domestic referment network and are you seeing any 12:36 12 minutes, 36 seconds tightening in availability or spread in recent months? 12:42 12 minutes, 42 seconds Can can you can you speak a little louder? 12:46 12 minutes, 46 seconds Yeah, I'm saying in terms of scrap sourcing, how diversify your is your domestic and network? 12:56 12 minutes, 56 seconds We have not seen any problem in sourcing the scrap because it's uh readily available in the nearby areas. 13:04 13 minutes, 4 seconds Mhm. 13:05 13 minutes, 5 seconds So my plant is never closed because of the non non availability of scrap. 13:14 13 minutes, 14 seconds Okay. Got so that is not a big problem at all that is not at all a problem for me. 13:25 13 minutes, 25 seconds Okay. Uh just just one last question from that. Right. on the demand part. 13:30 13 minutes, 30 seconds Where are we seeing um currently strong uh attraction from and which is real uh 13:37 13 minutes, 37 seconds recently as real estate, infrastructure, railways or commercial. Has this uh shifted meaningfully in the last um two to three quarters? 13:49 13 minutes, 49 seconds We we are mainly focusing on the uh real estate players projects. All the uh 13:56 13 minutes, 56 seconds developers in the we are approaching all the big developers in the NI for the other TMP product. Of course, my training system is B2B 14:06 14 minutes, 6 seconds business and uh we sold access to the various uh business houses. But for TNT, we have 14:15 14 minutes, 15 seconds approved initially we have approved all the private builders and developers which are in big 14:22 14 minutes, 22 seconds name. You can also see the those in our presentation all the big names. We we have supplied the our TNT devices to all 14:29 14 minutes, 29 seconds the buildings including city uh and some others. So our first is to 14:38 14 minutes, 38 seconds get all the developers. Thereafter definitely giving the approach to the and other uh 14:51 14 minutes, 51 seconds okay apart from apart from this yes we have a very wide of uh distribution channel and uh we are also 15:00 15 minutes sending out to the distributors thank you that's 15:14 15 minutes, 14 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 15:23 15 minutes, 23 seconds next question is from the line of Aditi Jane from Wealth Management Consultancy. Please go ahead. 15:31 15 minutes, 31 seconds Hello. So my question is as we move towards the targeted 75 to 80% 15:39 15 minutes, 39 seconds utilization what kind of aida margin expansion should we expect purely from operating leverage 15:50 15 minutes, 50 seconds hello good evening uh once we once we move to 75 to 80% 15:58 15 minutes, 58 seconds capacity a beta margin will definitely much much higher subject to market conditions. 16:08 16 minutes, 8 seconds We we expect to grow at a CGR of 20% on a leading basis. 16:14 16 minutes, 14 seconds Okay. And from an operational standpoint, how many days in these quarters does the plans typically remain 16:22 16 minutes, 22 seconds shut due to the maintenance or technical downtime? Is there any plan measure shutdown ahead that we should factor 16:31 16 minutes, 31 seconds into the volume balance except except the normal shutdown? Uh we 16:39 16 minutes, 39 seconds don't foresee any media shutdown but the normal shutdown is only for a day or two. That's all nothing else in 16:49 16 minutes, 49 seconds in a month in not more than that. 16:55 16 minutes, 55 seconds Okay. And what is the current working capital cycle as of 9 month 20126 in the 17:03 17 minutes, 3 seconds terms of receivable days, inventory days and payable days. How has this trended over the past two years uh post deliberating? 17:17 17 minutes, 17 seconds Receivable days is somewhere around uh 31 to 45 days. 30 to 45 days. 17:25 17 minutes, 25 seconds and inventory is somewhere around uh um 25 to 35 days. 17:36 17 minutes, 36 seconds Okay. 17:38 17 minutes, 38 seconds And also you have highlighted green field positioning. Have you received or applied for any recognized certification 17:46 17 minutes, 46 seconds such as responsible steel environmental product declaration ISO carbon reporting? 17:54 17 minutes, 54 seconds Yeah. Yeah. We we we are we have already certification of Sudan uh carbon border uh additional mechanism 18:02 18 minutes, 2 seconds and which we are uh receiving on past two years. Apart from this we have also applied for the green pro and we are 18:09 18 minutes, 9 seconds also in the discussion for the green certification with the consultants. So, so as you told earlier also we are 18:17 18 minutes, 17 seconds planning to uh syn synchronize with our another holding wheel to the SMS and post the synchronization and the 18:24 18 minutes, 24 seconds conveyor belt of course we will apply for the green machine also and my this uh green pro certification from CI I'm 18:33 18 minutes, 33 seconds expected uh in this quarter or maybe the uh early next quarter. 18:42 18 minutes, 42 seconds Okay, thank you. That's it. 18:50 18 minutes, 50 seconds Thank you. A reminder to all the participants that you may press star and one to ask a question. The next question 18:57 18 minutes, 57 seconds is from the line of Raja from Shah Vanches. Please go ahead. 19:03 19 minutes, 3 seconds Uh yeah, hi good afternoon. Uh could you uh give me also a sense of where still 19:09 19 minutes, 9 seconds uh melting utilization stands today in uh tage terms of quarter 3 and 9 months of 26 uh like uh what specific operation 19:18 19 minutes, 18 seconds constraints need to be addressed to reach 80%. 19:24 19 minutes, 24 seconds Uh I I'll give you a percentage terms it it is in the range of 60 to 65%. 19:30 19 minutes, 30 seconds inclination is in the range 60 to 65%. 19:35 19 minutes, 35 seconds And we we propose to increase it to 80 to 85%. 19:42 19 minutes, 42 seconds Uh-huh. Okay. And what specific uh like operational concerns need to be addressed to uh reach 80% like uh what will what would be your approach sir? 19:55 19 minutes, 55 seconds As I told you that we are in the process of uh doing direct charging of hots for for my 20:03 20 minutes, 3 seconds TMT m also AB we have direct charging of hot BS for stainless steel mill 20:10 20 minutes, 10 seconds right so now now we are in the process of completing the uh capex plan for direct charging of hots for TNT mini so 20:19 20 minutes, 19 seconds that that process will be completed by in this quarter or the early next quarter Once that process gets complete 20:27 20 minutes, 27 seconds so uh my cap relation will be uh much much higher as long we don't we have no issues as far as increasing the capacity. 20:39 20 minutes, 39 seconds Okay. And uh in terms of uh customer profile as well uh I just want to know like are you seeing larger developers of 20:47 20 minutes, 47 seconds EPC players increasingly specifically uh for FE 550G or stainless rebar tables 20:56 20 minutes, 56 seconds like uh is there any pricing premium being uh realized for grain or stainless positioning? 21:05 21 minutes, 5 seconds So we also explained in our last paper also the stage is still not grow in the 21:13 21 minutes, 13 seconds way we we anticipate. Of course there's a future the the the 21:20 21 minutes, 20 seconds future is of course but the way the way the speed we anticipate it is not the 21:28 21 minutes, 28 seconds develop. So it is for sure that uh in the near future 550B is the very good brand and we visit the very good demand 21:36 21 minutes, 36 seconds for the product. At present also there is a the uh developers the all the 21:43 21 minutes, 43 seconds developers are using 550 and uh we have also developed and uh made sure that our 21:50 21 minutes, 50 seconds product will be at par with all the primary producer of 550°. 21:57 21 minutes, 57 seconds So yes for the near future we are looking for the 550 for the use of 550G 22:04 22 minutes, 4 seconds but yes for the coastal for the borders uh there is a great for the stages. 22:14 22 minutes, 14 seconds Okay, got it. And uh from a I just also want to know from a defense and 22:20 22 minutes, 20 seconds strategic infrastructure perspective, are you engaging with any defense contractor like real infrastructure 22:28 22 minutes, 28 seconds players or public sector EPC from where qualification standards are more stringent? 22:34 22 minutes, 34 seconds Not not yet not yet. We are uh we are first focusing uh to 22:41 22 minutes, 41 seconds return our all our uh assets and thereafter of course when we have we after completion all our project timing 22:49 22 minutes, 49 seconds with like the career with convenience with some uh with and all after that of course we will again focus on the other areas. 23:01 23 minutes, 1 second Okay. And uh with regards to uh borrowing as well uh do you expect a short-term working capital limit to 23:09 23 minutes, 9 seconds reduce its utilization stabilizes uh will higher volumes naturally requires a larger working capital base? 23:18 23 minutes, 18 seconds No no no no you know on a on a uh last year of 500 crores we are working a bit of only 35 23:27 23 minutes, 27 seconds crores with this with in a side company is much much on a lower side. 23:37 23 minutes, 37 seconds So once as and when the volume will increase we will definitely looking for higher working revenue and we are trying 23:45 23 minutes, 45 seconds to reduce the cost of debt also we making all of us to reduce cost of debt by approaching new members. 23:55 23 minutes, 55 seconds Okay. Okay. And uh how many uh dealers we currently have sir? 24:02 24 minutes, 2 seconds We have around 300 dealers all over northern India. We have rati steel shop shops also 24:10 24 minutes, 10 seconds besides that we for ste business. 24:17 24 minutes, 17 seconds Okay. Setting setting of rati projects is not a problem at all. 24:26 24 minutes, 26 seconds Okay. It's not like that. It's not like that. 24:29 24 minutes, 29 seconds Uh I I keep on pressing and and I I keep on uh keeping them in my brain. No, it it is not like that. 24:39 24 minutes, 39 seconds Raji is a very very reputed brand in northern India and we don't we have never seen any problem in selling the products in quality of the products. 24:50 24 minutes, 50 seconds So selling selling part is not an issue at all for me. 24:56 24 minutes, 56 seconds Uh-huh. Uh sir uh I also want about uh like uh any uh uh current uh credit 25:03 25 minutes, 3 seconds period uh uh provided credit provided to whom 25:10 25 minutes, 10 seconds for like how long uh the current credit is uh uh current credit period is provided for dealersh 25:19 25 minutes, 19 seconds it it it depends it depends from dealer to dealer and uh product to product but it ranges from um uh 30 to 60 days. 25:32 25 minutes, 32 seconds Okay. Okay. Got it. Got it, sir. Yes. 25:35 25 minutes, 35 seconds That's it from my side, sir. Uh thank you so much for giving the insight for the business. Yes, that's it. That's all from my side. Thank you. 25:44 25 minutes, 44 seconds Thank you. Thank you. 25:47 25 minutes, 47 seconds Thank you. The next question is from the line of Mirain from Green Capital. Please go ahead. 25:58 25 minutes, 58 seconds your line is unmuted. Please proceed. Hello. 26:06 26 minutes, 6 seconds Yes, you are. Yeah. 26:08 26 minutes, 8 seconds Yes sir. So few questions. Uh I have today on export side. Do you see any direct opportunity to send this product 26:16 26 minutes, 16 seconds given the trade reset with you and US even if not directly into do any of your client significant exposure to those 26:24 26 minutes, 24 seconds market that could indirectly benefit our our volumes? 26:30 26 minutes, 30 seconds the the we are not doing any exports to EU or US but our uh dealer this is they 26:41 26 minutes, 41 seconds they I think they are definitely supplying do exports of our products. 26:49 26 minutes, 49 seconds Okay. 26:50 26 minutes, 50 seconds And uh currently which states contribute the largest share of revenue are you considering expension into western or southern India where standard 26:58 26 minutes, 58 seconds consumption may be no steel steel when we talk of uh TMT uh 27:08 27 minutes, 8 seconds logistically it is very costly if you go to southern India or some other part we are focusing on northern India only for 27:16 27 minutes, 16 seconds TMT bars for and for uh steel wires also. We our focus is mainly on northern northern India. 27:26 27 minutes, 26 seconds Okay. And if you talk about Yeah. 27:31 27 minutes, 31 seconds like Rajasthan Maharashtra Maharashtra but that is only for the by roads not for the TNT. 27:42 27 minutes, 42 seconds Okay. And you know one's rooftops are installed and what percent of total power 27:50 27 minutes, 50 seconds consumption could step towards a revised source and what is expected coming? 27:56 27 minutes, 56 seconds We uh rooftop we have not yet I mean installed the plant but uh we have we 28:04 28 minutes, 4 seconds have again uh the discussion with the consultant because uh I mean to to to 28:10 28 minutes, 10 seconds check what best we could uh install what best capacity we can install but also 28:18 28 minutes, 18 seconds and that are you looking for any in inorganic growth I mean it enjoyment or something. 28:30 28 minutes, 30 seconds Are you looking for any inorganic growth like we we are definitely looking for some 28:38 28 minutes, 38 seconds acquisition and all but uh that will subject to uh it will enhance our existing plant uh 28:48 28 minutes, 48 seconds which will be in line with uh our existing uh projects. So also what is the guidance for FA 27? 28:58 28 minutes, 58 seconds We are told this coming event we expect to grow and see growth of 20%. 29:05 29 minutes, 5 seconds Okay. So where we can see uh you in next ITF next IT my I think my turnover will 29:14 29 minutes, 14 seconds definitely double to what I I'm achieving today. 29:22 29 minutes, 22 seconds Okay. And there any uh update you know like investors will look 29:30 29 minutes, 30 seconds uh in you know we can expect in uh coming uh weeks or in next quarter 29:38 29 minutes, 38 seconds Christmas and operations whenever there will be any we keep keep posting it on the BC website. 29:51 29 minutes, 51 seconds Yeah. Okay, thank you. That's it from my Thank you. 30:00 30 minutes Thank you. The next question is from the line of Yeshua from Unique Solutions. Please go ahead. 30:09 30 minutes, 9 seconds Hello. Am I audible? Yeah. 30:13 30 minutes, 13 seconds Good evening sir. Uh I had a few question with me. Uh the first question is is there any scope to move further downstream for example into fabricated 30:22 30 minutes, 22 seconds or semi finished product to capture the additional margin layers. 30:30 30 minutes, 30 seconds So as as of now we are focusing on consolidating our existing business once that get uh consolidated and my capacity 30:39 30 minutes, 39 seconds relation will be maximized then we'll definitely think about that. 30:44 30 minutes, 44 seconds Okay. So the other question my side was u from a cost structure standpoint what 30:51 30 minutes, 51 seconds proportion of the total cost is raw material versus power versus labor. 31:01 31 minutes, 1 second Okay. This is labor. Uh we uh 31:10 31 minutes, 10 seconds uh my cost you must have seen from the results cost in in the range of 75 to 80%. 31:24 31 minutes, 24 seconds Okay. A landing approximately 30 acres. Our land holding 31:31 31 minutes, 31 seconds is approximately 30 acres. Can we expand the current facility within existing land assuming we decide to do so? 31:39 31 minutes, 39 seconds Yeah. Yeah. Um land for me to do uh to go for downstream uh production. 31:50 31 minutes, 50 seconds Okay. 31:52 31 minutes, 52 seconds And my last question was uh if we look three to five years out what do you believe will differentiate you the most 31:59 31 minutes, 59 seconds like in terms of scale technology green positioning or distribution strength or productization. 32:09 32 minutes, 9 seconds We are uh we must appreciate the fact that these are always always uh moving with the current trend. 32:20 32 minutes, 20 seconds Right now we are also we are already manufacturing our most of the product with the scrap which is known as presently known as the 32:28 32 minutes, 28 seconds green ministry and all. So we are already manufacturing green and our future product like 550D or access bar 32:35 32 minutes, 35 seconds is also based on the green material. We are also purchasing the power through the green green power through the open access and 32:44 32 minutes, 44 seconds also uh we are making effort to install rooftop power plant. So of course we are already 32:53 32 minutes, 53 seconds we have we have recently updated our plant uh so that uh our product will be the best in the market best in the 33:00 33 minutes segment. So we are we are already uh with the latest technology in the brand. 33:08 33 minutes, 8 seconds Okay. Thank you for that from my friend. 33:14 33 minutes, 14 seconds Thank you. Anyone who wishes to ask a question may press star N1 at this time. 33:22 33 minutes, 22 seconds The next question is from the line of Raja from Oakland Capital. Please go ahead. 33:28 33 minutes, 28 seconds Yeah. Uh thank you for the opportunity sir. Uh are there any specific regions or customer categories where margins are 33:37 33 minutes, 37 seconds structurally uh better compared to your current portfolio? 33:46 33 minutes, 46 seconds No, no, it is not like the case. Uh the margins there are different margins for 33:53 33 minutes, 53 seconds different products but uh customer wise there is no differentiation assets. 34:00 34 minutes Okay. answer. Uh over the last few quarters, have you seen any changes in 34:06 34 minutes, 6 seconds dealer behavior like you know uh the stocking trends or credit appetite which might you know signal uh demand acceleration or caution? 34:19 34 minutes, 19 seconds No, no. Um uh you must have uh if you have seen our posting on the BC website, recently we we have achieved the highest 34:27 34 minutes, 27 seconds table turnover in January of 77 crores in a month. 34:37 34 minutes, 37 seconds So uh had that been the case my turn would would not have been highest. 34:49 34 minutes, 49 seconds whether we are looking uh uh for uh better days ahead. 34:56 34 minutes, 56 seconds Okay. Okay. Uh or or answer uh like what percent or percentage of that revenue 35:03 35 minutes, 3 seconds comes from repeat C customers versus uh you know new client acquisition. 35:12 35 minutes, 12 seconds See if you uh keep the product. My product is one product is uh TMT rebars 35:20 35 minutes, 20 seconds uh which is used for a builder when when when a builder purchase TMT but of course he need the same product for his 35:28 35 minutes, 28 seconds each product but when it comes to the individual person of definitely the person will purchase only once or twice 35:36 35 minutes, 36 seconds because after that they have to once his house is ready they definitely do not need the bar. 35:42 35 minutes, 42 seconds like my uh my other product SS rebars SS wire ros it is the B2B product very 35:49 35 minutes, 49 seconds which it has various application like SS fasteners SS wires so the industries which are manufacturing 35:58 35 minutes, 58 seconds in the process of manufacturing let's say SS fasteners they need to purchase my rod on regular basis so this is the nature of our product. 36:11 36 minutes, 11 seconds So my in roughly you can say yes for uh CNS product my my existing my my 36:20 36 minutes, 20 seconds repeated client is more than 90 95%. And for TNT bars it is more than 70% is my 36:27 36 minutes, 27 seconds uh existing uh developers and suppliers of course the including the myers and distributors. 36:39 36 minutes, 39 seconds Okay, you know sir, uh that's it from my side. I I'll join back with queue if I have any more questions. 36:47 36 minutes, 47 seconds Thank you. 36:50 36 minutes, 50 seconds Thank you. A reminder to all the participants. If you wish to ask a question, you may press star and one. 36:58 36 minutes, 58 seconds The next question is from the line of Anish G from Anish and Associates. Please go ahead. 37:05 37 minutes, 5 seconds Yeah. A very good morning. Good evening, sir. Am I audible? Yes. 37:12 37 minutes, 12 seconds Okay sir. So my question is uh are we importing the raw material from any country or the requirement is fulfilled locally only? 37:22 37 minutes, 22 seconds We are currently we are not importing uh to any country or if it is my requirement which is fulfilled 37:30 37 minutes, 30 seconds by uh domestic or maybe the dealer who are providing the material maybe we he 37:39 37 minutes, 39 seconds may import some part but we are not directly reporting right now. Uh so my follow-up question is uh seeing the 37:47 37 minutes, 47 seconds annual report of the last year we have imported the raw material of 28 cr in the last year and 58 cr in the last last 37:55 37 minutes, 55 seconds year. So may know the reason if you if you compare with the 38:02 38 minutes, 2 seconds percentage I mean uh the percentage of uh raw material versus my purchase it 38:10 38 minutes, 10 seconds would be hardly hardly 7 to 10%. 38:15 38 minutes, 15 seconds So when whenever you found it suitable to import the material you can do so but in there is a lot of forities and time 38:24 38 minutes, 24 seconds involved for the import and by the time the materials came in the market the scenario will change 38:34 38 minutes, 34 seconds presently we are focusing mainly on domestic raw materials but as and when the uh conditions will be conducive we'll definitely go imports. 38:47 38 minutes, 47 seconds So, uh from which country are we importing the raw material in the last years? 38:53 38 minutes, 53 seconds Uh last year we imported uh from uh US, we imported from uh 39:01 39 minutes, 1 second uh Europe, we imported from uh Dubai, we imported from Kuwait. 39:10 39 minutes, 10 seconds Nor it's only the scrap part which comes from US, Europe or these countries 39:19 39 minutes, 19 seconds otherwise all other raw materials are local. 39:26 39 minutes, 26 seconds Okay. Okay sir. Thank you. That's from my side. 39:32 39 minutes, 32 seconds Thank you participants. If you wish to ask a question please press star N1 at this time. 39:49 39 minutes, 49 seconds As there are no questions from the participants, I now hand the conference over to Mr. Pat Achara for closing comments. 39:56 39 minutes, 56 seconds Over to you, sir. 39:59 39 minutes, 59 seconds Thank you everyone for joining the conference call of Shield and Power Limited. If you have any further query, 40:06 40 minutes, 6 seconds you can write us at research advisor.com. 40:10 40 minutes, 10 seconds Once again, thank you everyone for joining the concert. 40:16 40 minutes, 16 seconds Thank you so much for for your continued support. Thank you. 40:25 40 minutes, 25 seconds Thank you very much on behalf of Kirin Advisers Private Limited. That concludes this conference. Thank you all for joining us today and you may now disconnect your lines.