Rhi Magnesita India Ltd — Q3 FY26

RHI Magnesita India Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=hSqX3BQvHUI Published: 2 months ago

0:00 Ladies and gentlemen, good day and welcome to RHI Magnusa India Limited Q3 FY26 conference call hosted by BNK 0:08 8 seconds Securities. As a reminder, all participants line will be in the listenon mode and there will be an opportunity for you to ask questions 0:16 16 seconds after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on 0:24 24 seconds your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Rajes 0:31 31 seconds Majumdar from BNK securities. Thank you and over to you sir. 0:37 37 seconds Yeah. Uh good morning everyone and welcome to the Q3 and 9 month FY26 conference call of RHA India. We have 0:45 45 seconds with us today uh Mr. Permot Saga chairman Indian CEO and Mr. Azimin Sed CFO of the company joining us in this call. Before we get started, I would 0:54 54 seconds like to point out that some statements made or discussed on today's call may be forward-looking in nature and must be viewed in conjunction with risks and 1:02 1 minute, 2 seconds uncertainties that we face. The company does not undertake to update these forward-looking 1:09 1 minute, 9 seconds statements publicly. I now hand the conference over to Mr. Permote Saga, chairman, managing director and CEO from Sim India Limited. Thank you and over to you sir. 1:20 1 minute, 20 seconds Thank you Rajes G. Good morning everyone and thank you for joining us today. The quarter gone by has been defined by 1:29 1 minute, 29 seconds resilience and ability to sustain momentum in the face of macroeconomic 1:36 1 minute, 36 seconds advents. We have maintained our market leadership on the back of our diversified product portfolio, 1:44 1 minute, 44 seconds longstanding customer relationships and agile production capabilities. 1:50 1 minute, 50 seconds At the outset, let me start by highlighting that safety remains our highest priority at RH Magnesica. 1:58 1 minute, 58 seconds I'm pleased to share that we have been formally recognized by the World Refractory Association for exemplary 2:04 2 minutes, 4 seconds safety performance across nine refractory service locations. By enabling safer, more efficient steel and 2:13 2 minutes, 13 seconds steel production, we are strengthening India's industrial backbone and supporting the 5 trillion economy vision with selfline supply chains. 2:24 2 minutes, 24 seconds This quarter we maintained our strong market position and achieved record revenue again to the tune of 1,92 2:35 2 minutes, 35 seconds crores despite micro headwinds impacting the overall market. We once again surpass our 1,000 cr revenue benchmark. 2:46 2 minutes, 46 seconds A test amount to our strong business fundamental. A bit achieved at 13.7 in this quarter which is high highest in 2:55 2 minutes, 55 seconds this fiscal year. Strong iron making project order delivered through OEM order coupled with good good momentum in 3:03 3 minutes, 3 seconds flow control and four pro delivered expected and tangible returns. Even though the external environment remains 3:11 3 minutes, 11 seconds demanding, our performance will reflect the steady outcome of strategic decisions made consistently over a long period of time. 3:21 3 minutes, 21 seconds From industry perspective, refractive continue to face structural pressure as domestic over capacity addition outpaced 3:30 3 minutes, 30 seconds demand and over supply of import commoditized refractive products further intensify market challenges. A similar 3:38 3 minutes, 38 seconds situation exists in our core and market of steel and cment as well and steel producer face Chinese steel 3:46 3 minutes, 46 seconds dumping but safeguard tariff of 11 12% in Q3 and production link incentive were 3:54 3 minutes, 54 seconds introduced by government helped to c low price imports hence India returned to a next steel exporter 4:02 4 minutes, 2 seconds position in Q32526 after six consecutive quarters However, it must be noted that the safe 4:10 4 minutes, 10 seconds blood tariffs are only applicable for specific grade of flat steel products. 4:16 4 minutes, 16 seconds Despite Indo-URO and Indo-US trade deals, no further increase of imports, exports in steel are to be expected. 4:26 4 minutes, 26 seconds SE delivered strong shipment volume during this year. However, margin are under strain with capacity utilization 4:34 4 minutes, 34 seconds between 55 to 60% only. With a 10% yearon-year increase in government capex 4:41 4 minutes, 41 seconds along with real estate focus lost in recent budget, it is expected to improve utilization level further. 4:49 4 minutes, 49 seconds The recent budget sustains strong infrastructure spending across roads, railways, housing, sporting steel and 4:58 4 minutes, 58 seconds cement demand. The construction and infrastructure equipment scheme will promote heavy equipment manufacturing 5:05 5 minutes, 5 seconds further boosting steel consumption while the 20,000 cr carbon capture utilization 5:12 5 minutes, 12 seconds and storage fund advance decarbonization in steel and cement. 5:18 5 minutes, 18 seconds Together 10% capital growth the CI scheme and decarbonization initiative 5:25 5 minutes, 25 seconds create a structural opportunity for refractive supper aligned to steel seed value chain. 5:33 5 minutes, 33 seconds However, the industry continue to await targeted interventions such as duty relief on key raw materials to enhance cost competitiveness. 5:43 5 minutes, 43 seconds The above initiatives are positive from a growth perspective are our customer. 5:48 5 minutes, 48 seconds However, we are cautiously optimistic due to the industry challenges. 5:54 5 minutes, 54 seconds Our strategy initiatives are gaining traction across both solutionled and 6:01 6 minutes, 1 second productled businesses. Our future focus for this and next year would be on strengthening the core while delivering 6:09 6 minutes, 9 seconds sustainable long-term growth on our focus areas for this year includes 6:16 6 minutes, 16 seconds expanding our fourpro footprint across cement, steel, iron making sector. As 6:23 6 minutes, 23 seconds you people know cork means total refractory management with sustainability included in that focus on 6:31 6 minutes, 31 seconds our customer relationship. Strengthening our iron making business by enhancing our presence in cocoon and blast furnace area by launching new DR products. 6:42 6 minutes, 42 seconds Increasing our share in glass furnace runner management and tap clay supported by commissioning of the semi-automatic tapold clay line in Japur. 6:53 6 minutes, 53 seconds So define the HPI hydrocarbon processing industry business of legacy Rasco from 6:59 6 minutes, 59 seconds US in India and establish a clear growth road map. Continue with our cost 7:07 7 minutes, 7 seconds optimization program to remain competitive and control the spend with the right tradeoffs. 7:14 7 minutes, 14 seconds Advancing our R&D agenda by optimizing recipe with recycling to support circular economy initiative while 7:22 7 minutes, 22 seconds escorating new product transfer development and portfolio harmonization maintaining strict margin discipline to 7:31 7 minutes, 31 seconds ensure sustainable and profitable growth. 7:35 7 minutes, 35 seconds India remains a key market for global refractory suppliers with competitive intensity high across products and 7:44 7 minutes, 44 seconds customer segments. Despite this, we remain confident in our ability to respond to challenging market needs. 7:53 7 minutes, 53 seconds While remaining mindful of short-term challenges, we are cautiously optimistic about the path ahead. National year 2526 8:02 8 minutes, 2 seconds till now demonstrated a resilience and we are now focusing on converting this into tangible gain through disciplined 8:09 8 minutes, 9 seconds execution and sustainable market share expansion. 8:14 8 minutes, 14 seconds We are honored to have received recognition from both steel authority of India and Tatas group affirming the 8:22 8 minutes, 22 seconds strength of our product quality and execution. See part our social governance excellence underscore our 8:29 8 minutes, 29 seconds dedication to responsible business practices. While Tata steel naming us a joint partner of the year highlighting 8:36 8 minutes, 36 seconds our capability to deliver in complex steel making environment also we have received safety award from the industry. 8:45 8 minutes, 45 seconds In summary, while challenges remain, we are confident that our strong fundamentals discipline execution and customer focus 8:54 8 minutes, 54 seconds will sustain our growth momentum. I will now hand over it to Azim to take you through the financial performance in detail. Thanks a lot. 9:04 9 minutes, 4 seconds Thank you Pamoji and good morning to all. Let me now walk you through the financial results for the third quarter of FY26. 9:12 9 minutes, 12 seconds Despite market headwinds, we achieved our highest ever quarterly revenue of rupees 1,092 crores. This reflects a 9:20 9 minutes, 20 seconds sequential growth of approximately 5.5 percentage over Q2 FI26 and the year-on-year increase of 8% versus Q3 FI25. 9:31 9 minutes, 31 seconds This growth underpins our strategy in action. This growth was driven by four pro wins across steel plants and projects delivery project deliveries in 9:40 9 minutes, 40 seconds iron making. Average realization improved sequentially rising to 80,410 rupees per in uh per metric tan in Q3 9:50 9 minutes, 50 seconds FI26 from 73,237 per metric in Q2 FI26 reflecting an 9:56 9 minutes, 56 seconds improved product mix onetime performance bonuses and pricing discipline. The same is reflected in adjusted IVITA at rupees 10:05 10 minutes, 5 seconds 150 crores which marks a 36 improvement uh over the previous quarter and 14%age year on year. IBITA margins improved to 10:14 10 minutes, 14 seconds 13.7%age compared to 10.7%age in Q2 driven by the same reasons which we mentioned for realization. 10:23 10 minutes, 23 seconds Profit after tax for the quarter stood at rupees 62 crores up by 61%age quarteron quarter and 29%age yearon 10:30 10 minutes, 30 seconds year. Additional employee costs arising from the new wage code implementation and higher cost due to repeat depreciation, pressured margins which 10:38 10 minutes, 38 seconds was offset through operational excellence program which focuses on better manpower planning, machine level loading and tighter control over discretionary spends. 10:48 10 minutes, 48 seconds I'm pleased to share that we recorded highest ever operating cash flow at at 289 crores in current quarter representing a 627 percentage 10:57 10 minutes, 57 seconds quarteronquarter increase. This improvement was driven by strong evita growth, disciplined working capital management, particularly tighter 11:05 11 minutes, 5 seconds inventory control and improved collections. Turning to the balance sheet, we continue to operate with strong capital discipline. Between Q2 11:12 11 minutes, 12 seconds and Q3 FI26 net debt reduced from 200 crores to a net cash position of 35 crores. Hence net debt EBITA to to EBITA 11:21 11 minutes, 21 seconds ratio improved from.5x to minus minus minus.1x which is first time negative leverage 11:29 11 minutes, 29 seconds post acquisition. This reflects discipline capital allocation, robust cash generation and tighter working capital management. We now have ample 11:38 11 minutes, 38 seconds capacity to fund working capital requirements and pursue any growth investment without overleveraging the company. Looking ahead, we remain 11:46 11 minutes, 46 seconds confident and realistic uh quarters driven by a robust order book and pricing initiatives. Input cost optimization through our productivity 11:55 11 minutes, 55 seconds initiatives and normalizing raw material cost. In closing, RHA Magnusa India delivered solid topline growth with 12:02 12 minutes, 2 seconds strong margins in Q3 despite industry headwinds. Business fundamentals have positioned RHA Magnetica India for success through strong industrial 12:10 12 minutes, 10 seconds demand, solid execution and strategy and a healthy balance sheet. Thank you to all our stakeholders for your continued trust and support. We will now open the line for questions. 12:22 12 minutes, 22 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 12:29 12 minutes, 29 seconds telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a 12:38 12 minutes, 38 seconds question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. 12:48 12 minutes, 48 seconds The first question is from the line of Gervita Jane from 7 PMS. Please go ahead. 12:56 12 minutes, 56 seconds Uh hello sir. Good morning. I have one question. I've mentioned that there was onetime bonus received. Can you quantify 13:04 13 minutes, 4 seconds what was the amount of the bonus received during the quarter like what are the other factors which are driving the margins for us and the sustainable margins? 13:14 13 minutes, 14 seconds Actually when dream said one time bonus it doesn't mean it is one time. Actually in last quarter we did some uh ladle and 13:24 13 minutes, 24 seconds converter lining and over a period of time it start realizing in bonus because 13:31 13 minutes, 31 seconds there's a guarantee clause and when you are overreaching that guarantee then you are getting bonus. So that we got in 13:39 13 minutes, 39 seconds this quarter and we assume that it will continue that quarter as well because whatever we supply to the steel industry 13:48 13 minutes, 48 seconds uh on granty basis it is yielding uh results in terms of bonus. 13:55 13 minutes, 55 seconds So how like what ESC are clear about the process but I'm asking what is the amount that we have received this 14:02 14 minutes, 2 seconds quarter and how much are we expecting for the next quarter also we don't give those outlooks or the 14:10 14 minutes, 10 seconds current performance we don't separate out that performance purely because it's very difficult even for us also to mod 14:17 14 minutes, 17 seconds model this because it has multiple factors one how many contracts we have second is also the performance performance of the products and when it 14:26 14 minutes, 26 seconds will be realized based upon the steel production or consumption of our material. So we don't give out these material. We have never done that 14:33 14 minutes, 33 seconds historically. We will not start to do that now. Thank you. 14:37 14 minutes, 37 seconds So the amount of bonus cannot be disclosed. 14:40 14 minutes, 40 seconds No, we don't do that because of the variability as I mentioned earlier. 14:46 14 minutes, 46 seconds Okay. Okay. And the margins this quarter at the side of this bonus has increased because of what our reason. 14:55 14 minutes, 55 seconds Yes, absolutely. 14:59 14 minutes, 59 seconds Oh yes yes yes absolutely. Yes. Sorry the question was it was because of the product mix majorly right? 15:08 15 minutes, 8 seconds Absolutely. In the in the previous quarter we had cement as well that had a lower realization. Right. This time we 15:15 15 minutes, 15 seconds have uh not the cement orders, we also have some high margin OEM orders that also contribute to the increase in the 15:21 15 minutes, 21 seconds margins as well despite the uh performance. Okay. Okay. Go ahead sir. Thank you. 15:30 15 minutes, 30 seconds That's all. Yes. 15:33 15 minutes, 33 seconds Thank you. Anyone who wishes to ask a question may press star and one. The next question is from the line of Amit Aija from Hihawa. Please go ahead. 15:44 15 minutes, 44 seconds Yeah, good morning and thank you for the opportunity and congratulations for a good set of numbers. So what is the total uh so what is the total uh 15:52 15 minutes, 52 seconds installed capacity across plants and the utilization rate and what will be the peak revenue if the plant is 100% utilized. 16:02 16 minutes, 2 seconds So the current uh quarter capacity utilization on a consolidated manner is 64%age. 16:09 16 minutes, 9 seconds Um again the basic question is that the installed revenue on overall cap 16:16 16 minutes, 16 seconds utilization cannot be directly derived because of multiple reason. One is the pricing ability because as you know in 16:26 16 minutes, 26 seconds in in in chairman remark you have clearly heard that we have quite a bit of a market headwind. So the realization rate is subject to especially for the 16:35 16 minutes, 35 seconds commodity products it is subject to the market condition. So you cannot directly consolidate it. Second reason basically 16:42 16 minutes, 42 seconds also is that uh our lines are sometimes flexible which basically means sometimes we can do different product portfolio on 16:50 16 minutes, 50 seconds the same line. So hence basically what uh it is very difficult for us to kind of you know to say that okay fully produced you're going to get this 16:59 16 minutes, 59 seconds because some in in some months we have project orders project orders especially for the industrial let's say like MSN 17:06 17 minutes, 6 seconds glass which has higher realization rate versus a cement break which has probably a lower realization rate it will 17:14 17 minutes, 14 seconds completely skew up the number having said that the line process is completely different it's just the product the raw materials and the recipes that we use 17:22 17 minutes, 22 seconds are completely different. So unlike cement or steel industry, it's very difficult to directly give a estimate here. 17:31 17 minutes, 31 seconds And so the next question is about the recycling person target like currently I think so in presentation it is mentioned 19%. 17:39 17 minutes, 39 seconds Yes. So our target is to take it beyond 20% um in coming year. It will be gradual 17:47 17 minutes, 47 seconds process. You cannot jump from 19 to 25 or so. You need to see the you know products where you can increase without 17:57 17 minutes, 57 seconds impacting any quality uh or performance. You know we are we are not compromising. We are using 18:04 18 minutes, 4 seconds recycled material after thorough processing as raw material. 18:10 18 minutes, 10 seconds Not just uh taking out a used material and crushing and putting it in some rest. 18:17 18 minutes, 17 seconds It it will be gradual. Still we we are doing reasonably well. Thank you. 18:24 18 minutes, 24 seconds Thank you. Thank you sir. All I appreciate you answering my questions. All the best for the future. Thank you. 18:30 18 minutes, 30 seconds Thank you. The next question is from the line of Rajes Majun from BNK securities. Please go ahead. 18:38 18 minutes, 38 seconds Yes. So I had a question on the realization. while it has jumped from 73,000 to 80,000 odd uh sequentially 18:45 18 minutes, 45 seconds this captures some part of the uh performance bonus is that correct so what is the realistic realization growth that has happened this quarter and what 18:54 18 minutes, 54 seconds is the sustainable realization per turn I just want to get a hang of the price increase that you have got that's all uh 19:01 19 minutes, 1 second yes uh it has an impact on you know because of bonus in realization but it 19:08 19 minutes, 8 seconds is not that uh substantial that uh it it it cannot underline that 19:15 19 minutes, 15 seconds it is because of bonus right and uh you know it will keep on changing also depending upon uh the product mix like 19:24 19 minutes, 24 seconds this quarter Jan Feb March is a lean period for cement industry okay so it will have a different uh impact on 19:33 19 minutes, 33 seconds volume and profitability in that particular segment but at the same time 19:40 19 minutes, 40 seconds If you have a high-end like saying glass order or cocoon order uh then then it 19:48 19 minutes, 48 seconds also nettify it you know neutralize it also. So I think uh uh anything between 19:56 19 minutes, 56 seconds 76 to 80 should be you know the numbers the 20:02 20 minutes, 2 seconds healthy numbers without any performance bonuses etc. 20:09 20 minutes, 9 seconds Everybody on the call what do you mean by performance bonus? This also has an impact on the realization rate is that in the previous quarter for these 20:17 20 minutes, 17 seconds contracts we have installed the material. That means we have taken a cost in our P&L and we have not realized 20:25 20 minutes, 25 seconds any revenue or profitability because you earn after the product performs. So there is a lag in the way we earn the 20:34 20 minutes, 34 seconds earn the money for the cost that we have incurred in the previous quarter. So this also has an impact on the realization rates as well. Uh just to uh 20:43 20 minutes, 43 seconds we call it bonus because it comes a bit late and also it depends upon how much performance it gives. So just to clarify that it although it's called a bonus 20:51 20 minutes, 51 seconds it's just a lag effect of the materials that we install and the performance of the product. These both determines our performance bonuses. 21:01 21 minutes, 1 second Yes, that's useful. Just a follow-up question on the uh margins. So we had guided 14 to 15% margin that we going to 21:08 21 minutes, 8 seconds see in terms of normal business uh coming through in fourth quarter. Uh this is without the project order 21:17 21 minutes, 17 seconds there's a saying okay so but we have a too much headwind 21:27 21 minutes, 27 seconds I still say we wanted to have a you know sustainable margin between 14 15%. 21:34 21 minutes, 34 seconds Uh this this is our wishful thinking and not only thinking we are working toward that with various you know uh processes 21:44 21 minutes, 44 seconds levers actions in place that that's why you see this you know upside in this quarter and I cannot pre preempt for the 21:53 21 minutes, 53 seconds next quarter but uh I think we should be now in this uh line in coming days as well whatever we action taken it will 22:02 22 minutes, 2 seconds keep on yielding results in coming days as well. 22:07 22 minutes, 7 seconds Thank you so much. I join back in the queue. Thank you. Thank you. 22:13 22 minutes, 13 seconds Thank you. The next question is from the line of Mayank Bandari from Asian Market Securities. Please go ahead. 22:21 22 minutes, 21 seconds May thanks for the opportunity. Sir what would be the export contribution uh in the 9 month and I mean how much 22:30 22 minutes, 30 seconds flat as of now like uh last year 9 10% you know market international market is 22:37 22 minutes, 37 seconds so doile uh we we did a lot of trial but uh I think uh I last quarter also I mentioned 22:46 22 minutes, 46 seconds that maybe in 26 uh April onwards we will have some upside in export course because whatever 22:54 22 minutes, 54 seconds trial we did in this 9 months and are doing in this current quarter probably 23:01 23 minutes, 1 second it will start converting into order. So there will be some uptick but at the same time it will not be you know uh 23:09 23 minutes, 9 seconds exponential because the export is only iso static and slide gate refractory 23:17 23 minutes, 17 seconds which we call flow control. So flow control turn wise or revenue wise is not 23:25 23 minutes, 25 seconds you know it is as I said earlier it is about 25% of your total revenue. So if it is 25% and 23:33 23 minutes, 33 seconds if it increases maybe from 9 10% it will go to 11% or 11.5% or 12% it will not be from 9 10 to 20%. Okay. 23:46 23 minutes, 46 seconds So flow control contribution also is stag I mean flat y means like the 23:52 23 minutes, 52 seconds overall as part of the overall revenue there is a bit of increase but not sub 24:02 24 minutes, 2 seconds sub substantial sorry 24:08 24 minutes, 8 seconds okay and uh uh just on the margin uh if you could just give a flavor on the Q4 for what we are expecting terms of 24:18 24 minutes, 18 seconds margin that's what I said to the JS also uh we expect it should be on similar lines 24:26 24 minutes, 26 seconds if not better slightly better okay thank you 24:34 24 minutes, 34 seconds thank you we have to be a bit cautious because of market conditions 24:42 24 minutes, 42 seconds thank you next question is from the line of Abhin Swami Natan from Nafa Capital. Please go ahead. 24:50 24 minutes, 50 seconds Uh hi Z congrats on a good set of number. Just a couple of questions. Uh so earlier say five six years back we were completely focused on the steel 24:58 24 minutes, 58 seconds segment and now we have progressed into the cement and iron. Uh is it because of a stagnation in time growth in steel segment that resulted in us exploring 25:07 25 minutes, 7 seconds this lower margin opportunities? That's number one. Number two, can you also quantify our current market share in steel, cement and iron? Thank you. 25:16 25 minutes, 16 seconds So I I will take this. So I think our strategy always has been to kind of you know grow in refractory business and 25:25 25 minutes, 25 seconds with I'm sure you if you're covering steel market you will very well know that the Indian GDP consump for the GDP 25:32 25 minutes, 32 seconds consumption for cement is the lowest in the entire world especially for the middle class market. So because of this 25:40 25 minutes, 40 seconds and also we were also very clearly seeing that the infrastructure spend would be also going higher on the government uh from a government 25:48 25 minutes, 48 seconds perspective. So these two factors basically points to a very clear realization that the cement market is going to boom in the upcoming years. I'm 25:57 25 minutes, 57 seconds talking two years back and today it's a reality even in the current uh union budget you can see the amount of infrastructure spend was allocated. So 26:05 26 minutes, 5 seconds with this in mind we wanted to also grow with the in the cement market and hence we did couple of acquisitions that kind 26:13 26 minutes, 13 seconds of know supported our cement growth market to kind of you know to clarify the second question. So although it is 26:20 26 minutes, 20 seconds lower realization there's going to be a good growth opportunity and our strategy from the beginning was that we want to be having the highest market share and 26:28 26 minutes, 28 seconds grow with the market where possible or in some cases outgrid the market itself and for the outgrowth of the market we are basically focusing more on the iron 26:37 26 minutes, 37 seconds making brco and pallet now coming to the coming to the market share we have about 32%age market share in the steel side 26:46 26 minutes, 46 seconds and on the cement side we have close to about 404 41 percentage of market share in the business. So answer your question. 26:54 26 minutes, 54 seconds Uh thank you sir. Uh just a followup. Uh in a few segment uh last quarter we said that the margins have improved along qualities. So how is the margin for this quarter? 27:05 27 minutes, 5 seconds Sorry can can you repeat the question the margin was how much you said in the last quarter? 27:10 27 minutes, 10 seconds So in the last quarter uh we uh we were told that the margin in the cement segment specifically was 11.4%. It 27:16 27 minutes, 16 seconds improved from 8% to 11.4. before. So what could be the margin from this quarter? 27:22 27 minutes, 22 seconds We normally don't give out the margin separately by steel and cement. So I'm I'm just uh I I cannot recognize that number but uh 27:30 27 minutes, 30 seconds actually probably you are paying from Dalia plant. 27:34 27 minutes, 34 seconds Yeah that's right. It is not cement but yeah primarily it is the industrial business. 27:41 27 minutes, 41 seconds Okay. Okay. Uh so that that is almost at same level 10.5% to 11% or so. Exactly right. 27:50 27 minutes, 50 seconds Perfect. Thank you sir and congrats on a great set of numbers. Thank you. Thank you. Thank you. 27:56 27 minutes, 56 seconds Thank you. The next question is from the line of Pratanjali Shinasan from Sundaram Mutual Fund. Please go ahead. 28:05 28 minutes, 5 seconds Hi sir. Thank you for the opportunity. I have couple of questions. So firstly uh can you tell me what is the revenue mix 28:12 28 minutes, 12 seconds for the quarter between cement and steel and uh did we get any benefits of new plant commissioning in this quarter? 28:20 28 minutes, 20 seconds So let me give you the number for the ratio between cement and f. So steel was at about 80 percentage indust industrial 28:28 28 minutes, 28 seconds was 20%age of which cement in particular was some close to about 10%age and uh for the green field yes uh we 28:37 28 minutes, 37 seconds have signed some new contract with some of the green pro green field project uh with one of the biggest industrial uh in 28:45 28 minutes, 45 seconds integrated steel plants somewhere in Punjab. 28:49 28 minutes, 49 seconds Okay. So basically startup Lana we just signed a 4 pro contract uh as well in the month of January which as soon as it'll get commissioned somewhere in the 28:58 28 minutes, 58 seconds middle of the year we'll start taking the benefit of the middle of March probably they have a target to commission so next fiscal it 29:04 29 minutes, 4 seconds will be upside uh the business should be on the tune of say 5 to 6 million or 50 to 60 cr additional business from that 4 29:13 29 minutes, 13 seconds cr uh business exactly and it is end to furnace, saddle, ISO, flow control everything. 29:24 29 minutes, 24 seconds So first time in group you know strategy they have given from the commissioning stage for pro contract to any refactory industry in the world. 29:36 29 minutes, 36 seconds So that is a big achieve. 29:39 29 minutes, 39 seconds Great sir and uh next question I have is uh with respect to the quarter we saw a fair bit of improvement in margins. So 29:48 29 minutes, 48 seconds can you explain how this margin switch has happened? Is it because of improvement in pricing with respect to product mix or is it because of a 29:57 29 minutes, 57 seconds general reduction in input cost? What is the lever that's helping us to get generate this higher margin? 30:03 30 minutes, 3 seconds Actually this is we cannot pinpoint one lever. We are working on many things. Raw material is soften a little bit. 30:11 30 minutes, 11 seconds Yes. But we are saying input cost. At the same time we did this uh operational excellence in our plants to control the 30:20 30 minutes, 20 seconds cost. We start working on uh optimization of recipes products you 30:27 30 minutes, 27 seconds know uh specification to the exactly to the requirement of the customer. We 30:34 30 minutes, 34 seconds start increasing our recycling rate in our plants. we are working on reducing our the crap rate or rejections. So 30:43 30 minutes, 43 seconds there are multiple uh things at the same time we are very cautious about pricing with our customer. Wherever we need a 30:51 30 minutes, 51 seconds price increase we are pushing for that and uh at the same time if the pricing is so bad we are not into rat race. 31:01 31 minutes, 1 second Hello. Yes sir. 31:03 31 minutes, 3 seconds We are not into that race of getting the order at any cost. We have our internal strategy up to what level we will go for 31:11 31 minutes, 11 seconds a order or if it is below that we will not go we will leave it. So these are yielding result. Okay. 31:18 31 minutes, 18 seconds Okay. So if you had to bifocate like we had a 200 bits improvement in gross margin how much would you see came from 31:25 31 minutes, 25 seconds internal efficiency and how much is from RM softening? 31:31 31 minutes, 31 seconds Your question was not clear bifurcation of what you were seeking. Can you please repeat? Yeah. So the 200 bits 31:39 31 minutes, 39 seconds improvement that we have in gross margins, could you tell me like how much of it came in from uh internal efficiencies and how much of it is from softening of raw materials. 31:50 31 minutes, 50 seconds Um so there was a if you can we will you cannot see that direct bifurcation but if you have to make an assumption you 31:59 31 minutes, 59 seconds can look into the other expenses. uh maybe that will give you a very good idea in terms of how we have improved our operational cost as such uh from a 32:08 32 minutes, 8 seconds part-time perspective that's a one of the ways to look at that uh but again it's a super high level just from assumptionary purposes you can use that 32:17 32 minutes, 17 seconds on the material cost you can basically say that although we had a softening in the aluminina prices we had a this was 32:25 32 minutes, 25 seconds further negated by FM graphite and oxide price increases as well so there uh there were uh there were uh so you 32:34 32 minutes, 34 seconds need to take this number with a pinch of salt here because I do get the broad uh reduction 32:44 32 minutes, 44 seconds in other expenses that is weaken only thing is the improvement in gross margin is it a pricing function where we went 32:52 32 minutes, 52 seconds for a better uh quality product mix or is it because we had benefits from input 32:58 32 minutes, 58 seconds cost volume so I'm just trying As promog mentioned see in the previous quarter we had low margin cement order. 33:07 33 minutes, 7 seconds So you had a realization impact. This time you don't have the low order cement. Second product mix. So we had 33:14 33 minutes, 14 seconds more converters RT gases that we sold in the current quarter. So you had a product mix improvement as well. Now 33:21 33 minutes, 21 seconds what promology mentioning is that on top of this we had some operational excellence programs which we do normally every quarter. We do this as a part of 33:29 33 minutes, 29 seconds our continuous effort where we are focused on operational excellence program which focuses on two things. One is productivity. Second is on the safety 33:37 33 minutes, 37 seconds measures. So this also aided our benefit because as you saw that our volumes are lower which basically means that on the 33:45 33 minutes, 45 seconds cement side we had lower volumes. The question is how do you effectively plan your manpower? How do you effectively plan your raw materials and finish 33:53 33 minutes, 53 seconds goods? So these kind of operational excellence program have further improved our results. I hope that gave a clarity. 34:02 34 minutes, 2 seconds Yeah, that that that explains it very well. I just have one last question. Uh can you tell me like what is our target with respect to this traded good volume 34:10 34 minutes, 10 seconds that we have with our parent and uh are we trying to uh substitute that with a bit of domestic production going 34:18 34 minutes, 18 seconds forward? Do we have any strategy there in place? 34:22 34 minutes, 22 seconds Absolutely. So your voice is not clear but let me repeat the question what you answered your question was what is a target we are act that you are looking 34:29 34 minutes, 29 seconds forward in the trading percentage the answer is that we don't have any specific uh target there but how if you ask me differently do we want to 34:38 34 minutes, 38 seconds localize it yes you can see in our investor deck on uh on the R&D page in terms of the amount of new product 34:45 34 minutes, 45 seconds transfers and development we are doing again the focus is more to get some highly specialized product espec Especially in the area of cement and 34:54 34 minutes, 54 seconds some of the high-end technically uh advanced solution we are in the process of transferring now once we we have 35:02 35 minutes, 2 seconds transferred although we have transferred the technology we need to localize it to the local market demands. So yes our domestic production on this product 35:10 35 minutes, 10 seconds portfolio will increase quarter by quarter. It will be a slow and steady increase because we need to have the product acceptability. 35:18 35 minutes, 18 seconds we need to demonstrate through various trials and once there's an acceptance we will see the production volume increase as such I think you are seeing this in 35:27 35 minutes, 27 seconds the trading percentage also going low as well so o over over the over the course of years yes it'll increase 35:34 35 minutes, 34 seconds yes uh just to continue on that I get that you're directionally you're moving towards a higher ranks I'm just trying to figure out uh what would be our 35:43 35 minutes, 43 seconds long-term or say a threeear target in terms of how much of our volume should we want to uh keep entirely from our uh 35:51 35 minutes, 51 seconds domestic production because I think today 40% roughly in terms of volumes is from the uh traded parent. So what would 35:59 35 minutes, 59 seconds be a number that we would look at to achieve a couple of years? 36:03 36 minutes, 3 seconds So it this this volumes is not only the parent company this volume also includes the toll manufacturing as well. So uh 36:12 36 minutes, 12 seconds please bear that in mind that it just it's it's not like 40%age of the volumes we are completely trading uh we we're getting from the group. That's the first 36:20 36 minutes, 20 seconds assumption I want to kind of you know qualify. The second basically is that if you think about the product transfer we 36:29 36 minutes, 29 seconds look at it from uh from from you know how much of uh how much of added benefit it'll have again based on multiple 36:38 36 minutes, 38 seconds factors. One is the closeness of raw material. Some of the products are very closer to our parent company's raw material production. So you get quite a 36:46 36 minutes, 46 seconds bit of you know unique geological benefit. Of course these products we will not transfer. The products we will transfer is that where we have 36:54 36 minutes, 54 seconds availability of raw material our ability to produce the technology and third of course is a solid business case. We we 37:02 37 minutes, 2 seconds only entertain if the business case is a roy in double digit. Once these three things gets qualified that's where we make the investment and ensure that it's 37:12 37 minutes, 12 seconds trading it's moving. At the moment if you look at it we are more focusing on our industrial business which is 37:20 37 minutes, 20 seconds basically cement and non-ferris metal and glass. So this is where we are focusing apart from some of the acquisitions that we have done recently. 37:30 37 minutes, 30 seconds So this is where we kind of think about how we can localize the product portfolio. We'll not give the percentage because it'll tip off the market in 37:37 37 minutes, 37 seconds terms of what are the products we are bringing in here as well. But we will keep on updating whatever products we which is in in product for transfer. On 37:46 37 minutes, 46 seconds page number 17 you can see in the invested something similar we will start to publicize this. 37:54 37 minutes, 54 seconds Thank you so much. Thank you. 37:57 37 minutes, 57 seconds Thank you. The next question is from the line of Ashish K Diwal from Noama. 38:02 38 minutes, 2 seconds Please go ahead. Yeah, thank you for the opportunity and many congratulations for good setup number. So, uh my question is 38:09 38 minutes, 9 seconds again on the margins uh as you rightly pointed out in the uh in the beginning of the conversation that you know uh 38:16 38 minutes, 16 seconds situation in the market is not so great in terms of over supply situation but uh at the same time if you look at the 38:23 38 minutes, 23 seconds profitability of uh steel businesses that has improved significantly in last two quarter or last one quarter. So do 38:30 38 minutes, 30 seconds you think that from here on if any margin increase could happen uh will it be possible for us to take price hikes 38:38 38 minutes, 38 seconds to improve the margins or is margin improvement can only depend on our product mix or internal efficiencies? 38:45 38 minutes, 45 seconds That's my first question. 38:47 38 minutes, 47 seconds You know f we always try to get price increases from our customer wherever is possible. At the same time you know 38:56 38 minutes, 56 seconds market is so over capacity and uh you know if you with due respect to our 39:04 39 minutes, 4 seconds competition most of the competition try to grab order at any price. So when they are so 39:11 39 minutes, 11 seconds aggressive to get the order to getting price increase become very very difficult. You know in one of the cases 39:20 39 minutes, 20 seconds I just gave you an example in uh uh one project cement projects we were at 8% 39:28 39 minutes, 28 seconds margin and then the counter came to us with 13% lower margin 13% negative 39:36 39 minutes, 36 seconds margin and one of our competitor took that and it is not a B or C grade uh 39:43 39 minutes, 43 seconds competition it was A grade our level of competition so Some people you know try to just grab the order to fill their 39:52 39 minutes, 52 seconds additional capacities which they have created. 39:55 39 minutes, 55 seconds So it it became very very difficult to you know go and say I need a premium I need a you know different pricing than 40:02 40 minutes, 2 seconds the competition. So best way is how you can control your cost. How can you increase your you know efficiency productivity reduce your scrap rates 40:11 40 minutes, 11 seconds increase your recycling you know. So we are working on that. At the same time we will keep on striving for a price increases as you said steel industry if 40:20 40 minutes, 20 seconds they will have a comfortable situation with their margins. Definitely they will not be so rigid about price but at the 40:29 40 minutes, 29 seconds same time industry as a whole has to behave responsibly. 40:33 40 minutes, 33 seconds Understood. And secondly uh whatever cost benefit we could have taken on account of raw material cost lower that 40:40 40 minutes, 40 seconds we have already factored in and from here on we are not expecting at least for a quarter or two any raw material cost advantage to kick in the P&L. 40:49 40 minutes, 49 seconds Yeah I agree we don't see now because Alina prices are at it bottom so it can 40:57 40 minutes, 57 seconds go up will not go down further. uh magnesia if we talk about it has a bit 41:04 41 minutes, 4 seconds of upside and I don't see it will go further up so uh I can say it can be a 41:10 41 minutes, 10 seconds status quo for next uh two three months to maybe four five six months there will 41:17 41 minutes, 17 seconds not be a substantial delta upside or downside and lastly sir because now we are into 41:25 41 minutes, 25 seconds net cash status so uh two things either Will promoters will be willing to buy 41:33 41 minutes, 33 seconds stake if Dalmia tries to reduce their stake from 13%. Uh are the companies willing to increase our stake uh are the 41:42 41 minutes, 42 seconds promoters willing to increase our stake in the company or with this cash status are we more inclined to go for any inorganic expansion? 41:53 41 minutes, 53 seconds You know as of now nothing is on the table. We have not discussed anything at length whether we want to you know uh 42:01 42 minutes, 1 second buy back those shares or not. Maybe if Dalmia has to come you know forward whether they want to sell it off or not 42:10 42 minutes, 10 seconds and then we will take a call whether we want to or not and uh about the second 42:16 42 minutes, 16 seconds part what we are saying is uh inorganic 42:22 42 minutes, 22 seconds that also we don't see in 26 actually I personally don't see I wanted to consolidate whatever we acquired okay 42:31 42 minutes, 31 seconds but again if company will push us. No, no, this is a great opportunity. We should do that. We 42:38 42 minutes, 38 seconds will definitely try to do that. But as of now, my idea is that just to consolidate uh bring the you know margin 42:46 42 minutes, 46 seconds level to a respectable level, sustainable margin and then think of further expansion or acquiring the company. 42:54 42 minutes, 54 seconds Very clear. So at least promoters are not averse to buying Dalmia stick if it comes in the market. 43:00 43 minutes I'm not saying they are not averse. We have not even discussed because DHA has not reached out to us whether they want to sell off their shares or not. When 43:09 43 minutes, 9 seconds they will reach out then we will talk to the parent company workers our global CEO and then we will come to know whether they are ours or not ours. 43:18 43 minutes, 18 seconds Okay. Thank you. No, thank you so much and all the best. 43:25 43 minutes, 25 seconds Thank you so much. 43:27 43 minutes, 27 seconds Thank you. The next question is from the line of Sahil Sangi from Monach Network Capital. Please go ahead. 43:35 43 minutes, 35 seconds Good morning sir and congratulations again for a record uh revenue number. My first question is u yeah my first question is uh if you can help me 43:44 43 minutes, 44 seconds understand what is the percentage of imports uh that is uh posing a big 43:50 43 minutes, 50 seconds competition to our Indian market. Uh I mean what is the percentage to our total demand? If you can give some number and 43:58 43 minutes, 58 seconds also what kind of products are these are this are these largely breaks or just a bit of color on that what kind of products are these 44:06 44 minutes, 6 seconds so our export volume our export revenue percentage for the Q3 number is 11 I think import 44:14 44 minutes, 14 seconds Import oh okay my apologies I misunderstood it yeah so we basically group this number 44:21 44 minutes, 21 seconds with the with a set of the trading percentage numbers uh We we don't give out this specifically because it gives 44:29 44 minutes, 29 seconds us a a little bit of a competitive edge in terms of the product profile that we import. Sahil 44:36 44 minutes, 36 seconds aim sorry I just to rephrase my question uh I meant as a country uh the kind of imports that we are having which is 44:43 44 minutes, 43 seconds posing a threat to the overall uh uh you know how it's getting an overs supplied market. So just that on that color I 44:50 44 minutes, 50 seconds mean promoter did allude to a lot of imports coming. 44:54 44 minutes, 54 seconds So yeah so uh sahi mostly you know there are two 45:01 45 minutes, 1 second buckets one is where we have a technological advantage uh like our product like anchor. 45:13 45 minutes, 13 seconds Okay, everyone our competition over the ages years after year try to copy that they 45:20 45 minutes, 20 seconds could not because of some inherent you know raw material available with us and this is a very niche product. So we we 45:29 45 minutes, 29 seconds cannot make it in India. So it will keep on importing because for electric arcer this is the heart of that you know 45:36 45 minutes, 36 seconds performance and that give us lot of advantage over our competition. So same way there are few products I'll just 45:44 45 minutes, 44 seconds give you one example there are few product where we have real technological advantage and we have a raw material 45:52 45 minutes, 52 seconds over there so we don't want to you know shift it to India there are some products which we are still importing 45:59 45 minutes, 59 seconds and we are doing the accreditation in Indian plants we are doing the trials in Indian plants and gradually we will 46:08 46 minutes, 8 seconds shift those product to our Indian plant to take this capacity level from 64% to 75% and beyond. So it is a time 46:17 46 minutes, 17 seconds consuming process. We are doing that gradually. We understand the market dynamics. If we are local for local, we 46:24 46 minutes, 24 seconds have advantage with the same product because we will be doing the transfer pricing or sorry uh technology transfer 46:32 46 minutes, 32 seconds to Indian plants. So these are two buckets. One we will not touch the other we gradually will shift to India. Okay. 46:41 46 minutes, 41 seconds Right. Right. And uh so second question is that uh in FI25 uh the total revenue contribution from 46:50 46 minutes, 50 seconds total refractory management was roughly 41%. As I can see in the annual report uh any sense you can give what that 46:57 46 minutes, 57 seconds number could be this year? I mean maybe uh ending this year or currently where we are on that number. 47:03 47 minutes, 3 seconds Uh ending this year probably will remain same. Next year we should have advantage of four to 5% upside 47:13 47 minutes, 13 seconds Adora and agasha and all those things right sure so it will four%. Okay, sure. Thank you. Thank you so much. 47:23 47 minutes, 23 seconds That's all from my side. All the best. Thank you. 47:27 47 minutes, 27 seconds Thank you. The next question is from the line of Saraj Ma from Perpetual Capital Advisor. Please go ahead. 47:34 47 minutes, 34 seconds Hello. Thank you for the opportunity and the congratulations a good set of numbers. I wanted to understand from the induction furnace point of view. Could you provide a breakdown of the revenue 47:43 47 minutes, 43 seconds contribution from induction furnace and ramming mass within your portfolio and how do you see the market of ramming mass developing like how is it going 47:51 47 minutes, 51 seconds from organized to organized unorganized to organized and uh what matters uh for induction furnaces like is it the cost proximity or price for ramming mass? 48:02 48 minutes, 2 seconds Thank you. 48:04 48 minutes, 4 seconds You know uh when you talk about ramming m it is a very generic term ramming mask you know there are silica ramming mask 48:12 48 minutes, 12 seconds which people are using we don't make silica raming mask so one product which you are talking about is not under our 48:20 48 minutes, 20 seconds radar there are some other ramming masses like a neutral raming mask that we want to pursue we did some trials we 48:28 48 minutes, 28 seconds will definitely be more aggressive in that market. uh if you talk about induction furnace uh I don't know why 48:36 48 minutes, 36 seconds you're so much interested only knowing about induction furnace but I don't have any hesitation to say it is about 500 cr 48:44 48 minutes, 44 seconds business or so okay thank you 48:51 48 minutes, 51 seconds sir thank you the next question is from the line of prain jaram from Aendas Park 48:59 48 minutes, 59 seconds please go ahead Thank you for the opportunity sir. Are you able? Yes. 49:08 49 minutes, 8 seconds My question is also in the localization. 49:11 49 minutes, 11 seconds So we understood that you won't be uh specific number but directionally how have we been in this uh localization 49:19 49 minutes, 19 seconds trend when we compare our last years when when we were giving out the trading numbers. 49:26 49 minutes, 26 seconds Sorry, your your voice was not we could hear you but your voice was not clear so we couldn't understand your question. Is it better now? 49:34 49 minutes, 34 seconds Yeah, please give it a shot. 49:37 49 minutes, 37 seconds Yeah. So, uh I understood that we won't be giving our trading numbers which we were giving uh during like last year 49:43 49 minutes, 43 seconds call. So, directly how have we been in this uh localization journey when we compared to last year even if it is not a specific number. 49:54 49 minutes, 54 seconds Absolutely. We have uh introduced quite a bit of new products uh especially on the iron making side uh wherever we 50:01 50 minutes, 1 second wanted to make a uh you know which kind of aligns with our strategic initiative we were able to make quite a bit of a 50:08 50 minutes, 8 seconds significant progress. Hence in the last three three quarters of our invest investors deck we are making it 50:16 50 minutes, 16 seconds absolutely clear what are the kind of products that we are doing our focus current so this will increase rather than stable this will increase as I said 50:25 50 minutes, 25 seconds it has multiple factors one is our ability to get the raw material second is our ability to localize these recipes 50:33 50 minutes, 33 seconds for our Indian customer needs third is trial stage and fourth is acceptability so if you think about in this four 50:41 50 minutes, 41 seconds process we have introduced quite a bit of new products on the iron making side we'll continue to do so we have done 50:48 50 minutes, 48 seconds something on the cement side uh we will continue to do so and now we are also uh you know importing quite a bit of 50:55 50 minutes, 55 seconds advanced technical specialized def factories for the upcoming quarters as well 51:03 51 minutes, 3 seconds thanks sir so my second question uh is again a follow participant So we were discussing about 51:11 51 minutes, 11 seconds our margin levers where we discussed about price increase internal efficiency or volume growth. In fact while uh we 51:18 51 minutes, 18 seconds were discussing about price increase with the competition scenario right now price increase will not uh be something 51:25 51 minutes, 25 seconds which we can uh go uh aggressive on but uh the realization which we are uh at 51:33 51 minutes, 33 seconds right now is that sustainable like I heard the number to be 76,000 to 80,000 uh the range is that train sustainable 51:40 51 minutes, 40 seconds uh with the combination intensity right now as of now yes we think it is a sustainable minimal number uh in the 51:49 51 minutes, 49 seconds short term but you know market is so volatile I cannot predict after 6 month or so what will happen but as of now yes 51:57 51 minutes, 57 seconds it is sustainable at least for 3 months let's put it like that in the uh total refractory management contracts which we enter we would be uh 52:06 52 minutes, 6 seconds agreeing to rate up front for a certain period yes yes we we have to uh fix rate for a 52:15 52 minutes, 15 seconds certain period And then there's a price rate negotiation or price negotiation periodically. In some cases 6 months, in 52:24 52 minutes, 24 seconds some cases of one year, right? Right. And uh this contributes to 40 to 43% of our business 52:32 52 minutes, 32 seconds as of now. Yes. 40 41% I think or a little less. 52:37 52 minutes, 37 seconds It's actually 33%age is for the previous quarter. I think 45% is not the right number. I think one of the analysts mentioned that for FI24 it was 31.3%. 52:48 52 minutes, 48 seconds In the current quarter it is 33.1%. Yeah. 52:54 52 minutes, 54 seconds Right sir. So this includes both for 4 and uh PRM. 52:59 52 minutes, 59 seconds Yeah. See uh we stopped doing TRM because uh as we mentioned as Pamoji mentioned earlier that we wanted to 53:06 53 minutes, 6 seconds include uh two piece here. uh one is the planet piece which is the sustainability part in terms of how we can effectively 53:14 53 minutes, 14 seconds get the recycled material from the from our customers. Second is also the usage of robotics 53:21 53 minutes, 21 seconds and robotics using artificial intelligence to ensure a safe and a highly productive operations for our customer. So that's why it's slightly 53:29 53 minutes, 29 seconds different than the previous CRM but it's TRM is a subset of 44. Let's put it. So basically your question and whatever you 53:37 53 minutes, 37 seconds ask is right. It is a combination of TRM and corrooract. In some cases still TRM 53:44 53 minutes, 44 seconds we don't did not succeed to get the material back or putting a robotic or artificial intelligence. It is very very conventional TRM in most of the cases. 53:56 53 minutes, 56 seconds In some cases it is four pro. But now we start using terminology of four grow just to emphasize on our customer on our team itself. This is the way forward. 54:08 54 minutes, 8 seconds Exactly. 54:10 54 minutes, 10 seconds Right. So that's it uh from me sir. All the best for you sir. Thank you. 54:16 54 minutes, 16 seconds Thank you. The next question is from the line of Niha Jane and individual investor. Please go ahead. 54:25 54 minutes, 25 seconds You can go ahead Niha. Hello. 54:35 54 minutes, 35 seconds Hello. Yes. 54:38 54 minutes, 38 seconds Yeah. Good afternoon sir. Uh so I just wanted to understand uh for these uh new u products that uh you know are in 54:46 54 minutes, 46 seconds pipeline how uh can we expect their contribution in the coming year for 27 like what percentage can be expected in the next one to two years. 54:58 54 minutes, 58 seconds So if you think about it uh if you if you refer to page number 18 in our investor uh text you can see that 55:06 55 minutes, 6 seconds magnesia spinel bricks for our cement customer. So it so we are already selling these products to our customer 55:13 55 minutes, 13 seconds today. Now what will happen is that we will localize this production rather than getting it as an imported product. 55:19 55 minutes, 19 seconds So you'll you will kind of you know get a working capital benefit here. uh and uh you know you have the metronome brick 55:27 55 minutes, 27 seconds for RST grass. This also we are kind of you know will be localizing the production because again you pay lesser 55:35 55 minutes, 35 seconds production cost maybe comparing to the place where we are importing this from today or plus on top of it we save on the transit time and so on and so forth. 55:46 55 minutes, 46 seconds So there are various advantages. So some will be additional revenue some will be you get a working capital benefit. Uh so 55:54 55 minutes, 54 seconds this is the way we kind of you know see this improvement per se. Again it depends on the product portfolio and other things but yes definitely it will 56:02 56 minutes, 2 seconds overall improve our margin by you know by very very very lesser percentage but on the overall on your net cash 56:11 56 minutes, 11 seconds performance you will see a quite a huge benefit. may have if that helps. 56:17 56 minutes, 17 seconds Okay, sir. And coming to the working capital part, uh do we have a lot of stress due to the PSU receivables? 56:25 56 minutes, 25 seconds Do we have what? Can you can you please repeat the question again? It was due to PSU receivables on the working capital front. 56:34 56 minutes, 34 seconds Yes, we do have uh healthy receivables from the PS front. We don't see any big challenges today as probably we had once 56:42 56 minutes, 42 seconds uh you know last year one year back it's improved quite significantly again that was only with RNL and I think they're 56:50 56 minutes, 50 seconds due to the cash infusion on the RNL side it's kind of have improved it is getting better and better still we have some collectibles but overall we are in a 56:59 56 minutes, 59 seconds very healthy position with PSU got it thank you so much and good luck thank Thank you. 57:08 57 minutes, 8 seconds Thank you. We'll take the last question from the line of Rajesh Majunar from BNK Securities. Please go ahead. 57:16 57 minutes, 16 seconds So one question on a on the sector refractory. We've seen a lot of CEO exits and what is happening in that 57:23 57 minutes, 23 seconds company? Is the company up for sale or what is happening there? Are they competing also actively in the market or what do you see happening there? 57:32 57 minutes, 32 seconds Look uh we we love IFG. I don't want to give any 57:39 57 minutes, 39 seconds comments on that but I I'm really surprised to see their results. I don't know what went wrong. Only thing is you 57:47 57 minutes, 47 seconds know uh they are trying to be everywhere. I don't know 57:54 57 minutes, 54 seconds their core strength was flow control etc. But now they are trying to be everywhere. their employee cost has gone up exceptionally. 58:05 58 minutes, 5 seconds Uh I don't know Raj you are sitting in Kolkata. I thought you will give us some feedback. 58:14 58 minutes, 14 seconds Yeah I think that you know industry structure can change quite a bit if you know scales down or whatever is what I 58:23 58 minutes, 23 seconds was thinking. But with jokes aside, I think you need to ask them, not us because we we you can ask us about 4pro 58:30 58 minutes, 30 seconds about our margins. We will be able to explain this better. 58:35 58 minutes, 35 seconds I start with that's why I start with we loved so and the management we are all friends. 58:42 58 minutes, 42 seconds Great. That that's the comment we have. 58:45 58 minutes, 45 seconds No, sir. Congratulations once again on your numbers. Thank you so much. 58:55 58 minutes, 55 seconds Thank you ladies and gentlemen. That was the last question for today. I would now like to hand the conference over to Mr. 59:01 59 minutes, 1 second Promote Saga for closing comments. 59:06 59 minutes, 6 seconds Thank you very much. Uh dear investors, shareholders, analysts for your continuous support. 59:14 59 minutes, 14 seconds keep uh guiding us, keep asking us uh sometime you know not so comfortable questions so that we are more agile, we 59:22 59 minutes, 22 seconds are more prepared and uh keep on pushing us uh we love to be under bit of 59:30 59 minutes, 30 seconds pressure to deliver good results. So I I can assure you at R Magnesica India 59:37 59 minutes, 37 seconds Limited we are trying our best to further improve the results, further improve the uh performance and uh the 59:46 59 minutes, 46 seconds investors should get their due uh benefits from uh by investing in this company which is having a very strong 59:54 59 minutes, 54 seconds fundamental and in coming days uh it will further improve. So thank you very much for this uh call and your trust on us. Have a good day. 1:00:06 1 hour, 6 seconds On behalf of RHI Magnesita India Limited, that concludes this conference. 1:00:11 1 hour, 11 seconds Thank you for joining us and you may now disconnect your lines.