Shyam Metalics and Energy Limited — Q4 FY26

Shyam Metalics and Energy Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=4NXJ_AfroLc Published: 1 day ago

0:04 4 seconds Ladies and gentlemen, good day and welcome to the Q4 and FY26 earnings conference call of Sham Metallics and Energy Limited hosted by MUFG and time. 0:17 17 seconds As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:27 27 seconds Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. 0:34 34 seconds I now hand the conference over to Mr. 0:36 36 seconds Panka Sharala from Sham Metallics. Thank you and over to you sir. 0:42 42 seconds Thank you. Good evening ladies and gentlemen. Hi Panka Halala, head of investor relations at Sham Metallics. 0:50 50 seconds welcome you all to the earnings conference call to discuss Q4 and fullear FI26 results. I hope you all had 0:59 59 seconds an opportunity to review our press release and the investor presentation read along with the safe harbor statement which are available under the 1:07 1 minute, 7 seconds investor section of our website and the same are accessible on the BSC and NSC websites. To discuss the results today 1:16 1 minute, 16 seconds I'm joined by Mr. Bridge Bushan Aarwal chairman and managing director Mr. 1:21 1 minute, 21 seconds Deepak Aarwal director of finance and CFO and Mr. Sumit Katan from MEFG in time our investor relations partner. Now 1:29 1 minute, 29 seconds I would like to invite Bridge Vanji to provide his perspective on the performance of the fourth quarter and FY26. Thank you and over to you sir. 1:42 1 minute, 42 seconds Thank you. Good afternoon everyone. 1:47 1 minute, 47 seconds Welcome to SH Metallic and Energy Q4 FY26 earning conference call. 1:57 1 minute, 57 seconds I will begin with a brief overview of the industry landscape and operating environment 2:05 2 minutes, 5 seconds both of which continue to evolve amid global and domestic development 2:15 2 minutes, 15 seconds globally. The steel industry has remained influenced by trade related action across key market 2:24 2 minutes, 24 seconds while the ongoing Middle East conflict has moderated demand in certain region. 2:33 2 minutes, 33 seconds These factors have contributed to a redirection of steel flow into the alternate market 2:43 2 minutes, 43 seconds resulting in the price pressure across geographic 2:50 2 minutes, 50 seconds and heightened volatility in global steel prices. 2:55 2 minutes, 55 seconds Turning to India, the global steel demand environment remain robust and encouraging. 3:05 3 minutes, 5 seconds Demand continues to support by broad-based strength 3:11 3 minutes, 11 seconds across major steel consuming sector including infrastructure le construction 3:19 3 minutes, 19 seconds activity manufacturing activity urbanization with spending on huge infra project 3:29 3 minutes, 29 seconds such as road railways power. 3:34 3 minutes, 34 seconds Now coming to SH metallic FI26 has been a very significant year for us marked by 3:43 3 minutes, 43 seconds a strong project execution strategic expansion operational stabilization 3:53 3 minutes, 53 seconds during the year. We achieved meaningful milestone across our manufacturing 3:59 3 minutes, 59 seconds facility with key highlights including the completion of CRM complex at Jamurya 4:09 4 minutes, 9 seconds and the successful commissioning of the blast furnace at our Karatpur plant. 4:18 4 minutes, 18 seconds For FI26, our sales volume stood at 4.94 million 4:25 4 minutes, 25 seconds tons, reflecting a strong year-on-year growth of 26%. 4:33 4 minutes, 33 seconds In Q4 26, sales volume registered a growth of 22% over the smart period of last year. 4:44 4 minutes, 44 seconds Importantly, we maintained sales mix across product categories while continuing to optimize 4:53 4 minutes, 53 seconds realization through a sharper focus on the higher value added product. 5:00 5 minutes The strong volume expansion translated into healthy growth in both revenue and profitability. 5:08 5 minutes, 8 seconds For the full year FY26, the revenue grew by 22%. 5:15 5 minutes, 15 seconds While the profitability increased by 17%. 5:20 5 minutes, 20 seconds For Q426, revenue rose by 27% year on year while profit profitability growing about 42%. 5:33 5 minutes, 33 seconds This performance under plan by our integrated operation, 5:40 5 minutes, 40 seconds diversified portfolio, sustained operational discipline, continuous focus on cost efficiency. 5:50 5 minutes, 50 seconds We also made substantial progress on strategic growth initiative during the quarter. 5:59 5 minutes, 59 seconds Phase two operation of the CRM complex at Jamurya was successfully commissioned. 6:06 6 minutes, 6 seconds In addition, we expanded our aluminium operation at Pakura to the commissioning of downstream heat treatment process. 6:18 6 minutes, 18 seconds This development has significantly and meaningfully enhanced our value addition in the downstream 6:27 6 minutes, 27 seconds capability and further strengthening our integrated manufacturing platform and supporting a long-term growth aspiration. 6:38 6 minutes, 38 seconds Reaffirming our commitment to a long-term growth, the board has additionally 6:47 6 minutes, 47 seconds decided for a new capex investment of 2,700 crores. 6:53 6 minutes, 53 seconds This strategic investment is aimed at a deep presence into the value added and 7:01 7 minutes, 1 second speciality steel segment downstream stainless steel capability and accelerating 7:08 7 minutes, 8 seconds with the transition towards a higher value added product with better margin. 7:16 7 minutes, 16 seconds The proposed capex will be primarily funded through internal occur reflecting our disciply 7:23 7 minutes, 23 seconds and capital efficient approach towards value expansion. 7:28 7 minutes, 28 seconds This investment remained fully aligned with our broader strategy of driving profitable growth through 7:36 7 minutes, 36 seconds premiumization, downstream in integration and prudent capital allocation. 7:44 7 minutes, 44 seconds We welcome the changing democratic and policy environment in the state of West 7:50 7 minutes, 50 seconds Bengal and remain extremely optimistic about the state next phase of industrialization 7:59 7 minutes, 59 seconds and growth. As a company with deep root in the state of West Bengal, we expect 8:08 8 minutes, 8 seconds a more growth oriented ecosystem to support faster development 8:14 8 minutes, 14 seconds in the forms of infrastructure creating new investment in flow and will add more value to the organization. 8:25 8 minutes, 25 seconds With our continued expansion across various metals in speciality alloy, stainless steel, 8:34 8 minutes, 34 seconds aluminium, railway infrastructure, value added products. We believe both the state and 8:42 8 minutes, 42 seconds the company are well positioned for a stronger long-term commitment. 8:47 8 minutes, 47 seconds In closing, we remain firmly focused on the substantial growth, improving profitability, 8:54 8 minutes, 54 seconds creating long-term value for our shareholders. We sincerely thank you for your continued support, trust, and will 9:02 9 minutes, 2 seconds look forward to engaging with you in the quarters ahead. 9:07 9 minutes, 7 seconds With this, now I conclude my speech and I would request our CFO, Mr. 9:14 9 minutes, 14 seconds otherwise to take up to the financial performance. Thank you. 9:21 9 minutes, 21 seconds Thank you sir. Good afternoon everyone. 9:25 9 minutes, 25 seconds Thank you for joining us today for Sham Metling Energy Lintage earning calls for the fourth quarter and full year ended 31st March 2026. 9:34 9 minutes, 34 seconds I am Deepal, chief financial officer of the company and I am delighted to present our financial result on behalf of the board 9:42 9 minutes, 42 seconds of director and the entire Shametric family. I will take you through our key financial highlights for the fourth 9:49 9 minutes, 49 seconds quarter and the full year that is 2526 followed by a discussions on our capital allocation strategy, balance sheet 9:57 9 minutes, 57 seconds strength and the strategic investment we are making for our next phase of growth. 10:02 10 minutes, 2 seconds Our chairman and managing director Sri Brig Bushar Agarwal GI has already shared his vision. I will now add the financial dimension to that story. 10:12 10 minutes, 12 seconds First we will discuss about the quarter four of the current last financial year. 10:17 10 minutes, 17 seconds Ladies and gentlemen, I am proud to report that the quarter four of the last financial year has been one of our strongest quarter on record across every 10:26 10 minutes, 26 seconds critical financial metrics. Let me walk you through the highlights. The revenue from operations 10:33 10 minutes, 33 seconds five 5,240 cr 27% growth year on year and 19% growth on quarteron quarter. 10:41 10 minutes, 41 seconds When we talk about the AIA the company has achieved 756 cr there is a growth of 33% on a yearon-year basis and there is 10:50 10 minutes, 50 seconds a growth of 40% on a quarteron-quarter basis. When we talk about the IITA margin 14.4% 10:57 10 minutes, 57 seconds expanded from 13.8% 8% from the quarter four of the last financial year and 12.2% in quarter 3 of the last financial 11:04 11 minutes, 4 seconds year. When we talk about the operating aida the company has achieved 727 cr of 41% on yearly basis and 49% on a 11:14 11 minutes, 14 seconds quarteronquarter basis. As you all aware that there is substantially is uh treasury is there. Therefore our 11:23 11 minutes, 23 seconds total IITA is 756 cr. The operating AITA margin is 39 11:29 11 minutes, 29 seconds 13.9% versus 12.4% in quarter 4 of the last financial year. When you talk about the profit after tax 312 cr 14% growth 11:39 11 minutes, 39 seconds on yearly basis and 58% growth on quarteronquarter basis. The pat margin is 6% against 5.3% in quarter 4 of the 11:47 11 minutes, 47 seconds last financial year. What makes these numbers particularly gratifying is not just the magnitude of the growth but the 11:55 11 minutes, 55 seconds quality of it. Our margin expansion has been achieved through discipline cost management improvement in realization 12:03 12 minutes, 3 seconds across most product categories and a favorable shift in our product towards higher value ad segments. Now I will 12:12 12 minutes, 12 seconds discuss the fullear performance that is 2526. 12:17 12 minutes, 17 seconds Therefore the annual turnover for the whole year is 18,552 cr that is 22% growth on yearon basis. 12:26 12 minutes, 26 seconds Full year AITA is 2,537 cr there is a growth of 21%. Full year aida margin is 13.7% 12:34 12 minutes, 34 seconds against 13.8% in the financial year 25. The resilience amidst sliding input cost per pressure. 12:42 12 minutes, 42 seconds Full year operating margin is 2,333 cr is a 25% on yearly basis. The fullear 12:50 12 minutes, 50 seconds operating epida margin is 12.6% against 12.3% in the last financial year. The 12:55 12 minutes, 55 seconds fullear path is 1,61 cr 17% growth on yearon basis. The full year basic APS is 13:04 13 minutes, 4 seconds 38.1 rupees per share against the 32.7 rupees per share last financial year 13:11 13 minutes, 11 seconds crossing the 8,000 cr of revenue threshold and delivering over 1,000 cr of pad for the full financial year 13:20 13 minutes, 20 seconds underscored the scale and earning power that Shia metric has built over recent year. This is a business firing on all 13:29 13 minutes, 29 seconds cylinders. Now we will discuss about the volume growth and pattern realization. 13:35 13 minutes, 35 seconds The revenue growth is always most meaningful when it is accompanied by a genuine volume expansion and that is 13:43 13 minutes, 43 seconds precisely the story here. Overall the volume grow by 12 22% on yearon basis 13:50 13 minutes, 50 seconds and quarter 426 validity both our capacity expansion investments and our strengthen market positioning. Let me 13:59 13 minutes, 59 seconds highlight some of the most significant volume goal volume achieved during the quarter four of the current financial 14:06 14 minutes, 6 seconds year. The CR coil volume surged by approximately 200% on yearon-year basis reaching 50,344 14:15 14 minutes, 15 seconds ton a testament to the ramp up of our CRM complex at Jamurya. The peak island volume grew by 200% on iron basis that 14:24 14 minutes, 24 seconds is 2 lakh 38,499 tons reflecting the strongest domestic demand and our expanded product capabilities. 14:33 14 minutes, 33 seconds Iron pallet volume grow by 40% on year basis 278 341 ton driven by operational 14:41 14 minutes, 41 seconds efficiency and improved realization. The stainless steel volume grow by 13% year-on-year basis to 27,287 14:50 14 minutes, 50 seconds ton. Continue a pre primalization journey on pertain realizations we saw healthy improvement across most product 14:58 14 minutes, 58 seconds line. Aluminium realization improved by 16% year on year basis that is 4 lakh 7,461 15:06 15 minutes, 6 seconds rupees per turn. Stainless steel realization improved nearly 17% year on basis. CR coil CR seed relations rose 15:14 15 minutes, 14 seconds approximately 15% on year on basis that is 78,513 per ton. This improvement reflect both 15:23 15 minutes, 23 seconds firm underlying demand and our deliberate push towards value added and speciality product with the superior 15:30 15 minutes, 30 seconds margin profile. Let me now walk through some key observations on our consolidated profit and loss account. 15:38 15 minutes, 38 seconds First revenue mix. Our steel product segment continue to anchor the business contributing approximately 75% of our 15:46 15 minutes, 46 seconds total revenue mix in both quarter 4 and the full financial year. Within this carbon steel remains our single largest 15:53 15 minutes, 53 seconds contributor at approximately 90 39% of revenue followed by pig iron, iron pallet, speciality alloy and stainless 16:01 16 minutes, 1 second steel. The growing contribution of Shia seed stainless almonium is deliberately strategic shift. One that is enhancing our blended margin profile. 16:13 16 minutes, 13 seconds As far as cash generations, I am particularly pleased to report that our business continued to be a robust cash generations. The net cash generated from 16:22 16 minutes, 22 seconds operating activity for the financial year 25 is approximately 2,000 cr on a consolidate basis. An improvement over 16:30 16 minutes, 30 seconds the prior year reflecting the strong earning working capital discipline. This cash generation capacity is what gives 16:38 16 minutes, 38 seconds us the confidence to commit our next phase of capital investment. The SH metal energy limited continued to 16:46 16 minutes, 46 seconds maintain a strong balance sheet and healthy return profile in the financial year 2526 16:52 16 minutes, 52 seconds despite being a big capex cycle. The company reported ROC is 16% and RO is 16:59 16 minutes, 59 seconds 13% in the financial year 2526 reflecting a disciplined capital allocations operational efficiency 17:07 17 minutes, 7 seconds student leverage management that resulted into reflection of our working capital days from 22 days to 9 days. Our 17:15 17 minutes, 15 seconds financial architecture is designed to support growth without compromising financial resilience. We run a 17:23 17 minutes, 23 seconds fundamental conservative balance sheet, low leverage, strong operating cash flow and adequate liquidity buffer. Now we 17:32 17 minutes, 32 seconds move into the dividends. As you all aware that the board of director has recommended a final dividend of rupees 17:38 17 minutes, 38 seconds 2.7 rupees per equity share representing at 27% of the face value of rupes 10 each for the financial year 2526. This 17:47 17 minutes, 47 seconds recommendation is subject to the approval of shareholder at the insuring annual general meeting. This dividend declaration reflect our confidence in 17:56 17 minutes, 56 seconds the company's financial health and our commitment to consistent reward our shareholder while simultaneously investing in long-term growth. We 18:05 18 minutes, 5 seconds believe we strike the right balance between capital return and value creation. 18:11 18 minutes, 11 seconds Now moving to the strategic capex. Now let me speak about the forest the most exciting announcement in our region. The 18:18 18 minutes, 18 seconds board has approved a phase capex is 2,700 cr for our next phase of growth. 18:25 18 minutes, 25 seconds This investment comprising two major project. One is the long and speciality wire bal. We will setting up a long 18:33 18 minutes, 33 seconds speciality wire mill with a furnace at karakpool with a capacity of 8 lakh t at an estimated capital place 900 cr. This 18:42 18 minutes, 42 seconds project is targeting to commissioning by 31st March 2029. 18:47 18 minutes, 47 seconds Second one is the stainless steel expansion and downstream facility at Sambalpur. We expanding our stainless steel capacity to 6 million at Saralur 18:56 18 minutes, 56 seconds compl complemented by worldclass downstream capability including cold rolling mill precession cold rolling 19:04 19 minutes, 4 seconds mill hot rolling analing and pickling line and a bright analing line. This estimated investment is 1,800 cr with a 19:13 19 minutes, 13 seconds targeting commissioning date is March 2029. 19:18 19 minutes, 18 seconds This project will be funded majorly from our internal acquir and which is also mix of of if if any debt is required 19:26 19 minutes, 26 seconds then we can take otherwise it is it will be served through our internal equal given our strong operating cash flow 19:33 19 minutes, 33 seconds generation demonstrated by over 2,000 cr in operating cash flow in the financial year 2526 alone we are well positioning 19:41 19 minutes, 41 seconds to fund this capex program while maintaining balance sheet defect play the involving democrative and economic involvement in West Bengal present a 19:50 19 minutes, 50 seconds positive outlook for industrial growth and a long-term development. As a company with a significant manufacturing 19:56 19 minutes, 56 seconds presence in the state, Charat League remains encouraged by the potential for stronger infrastructure creation, higher 20:04 20 minutes, 4 seconds investments, improve industrial activity and employment generation. We believe this environment can further support the 20:12 20 minutes, 12 seconds company's onway expansion plan, downstream integration initiatives and value added product strategy while also 20:19 20 minutes, 19 seconds contributing meaningfully to the broader economic progress of the state. We now look forward to taking your question and answer. Thank you. 20:31 20 minutes, 31 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 20:40 20 minutes, 40 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 20:49 20 minutes, 49 seconds question. Ladies and gentlemen, we will wait for a moment while the question assembles. 21:00 21 minutes The first question is from the line of Amit Dshit from Goldman Sachs. Please go ahead. 21:07 21 minutes, 7 seconds Uh yeah. Hi. Uh good evening sir and uh congratulations for a great sub set of numbers. Uh thanks for the opportunity. 21:14 21 minutes, 14 seconds Couple of questions from my side. Uh the first one is on the on the volume growth. So last year volume growth was 21:22 21 minutes, 22 seconds quite splendid particularly of value added products uh driven by CR coil. Uh now this year what are the key elements 21:30 21 minutes, 30 seconds of uh volume growth? Also if you could uh highlight the major capacities that would get commissioned in the course of 21:37 21 minutes, 37 seconds the year that would be great. That is my first question. 21:43 21 minutes, 43 seconds The uh first of all as in uh 21:50 21 minutes, 50 seconds volume growth we are expecting half a million ton of iron making facility from the DR side is going to be 21:58 21 minutes, 58 seconds commissioned this year which will also have an effect on the power generation day sheet recovery and 22:06 22 minutes, 6 seconds we expect the power generation will also go up from the steel side. 22:13 22 minutes, 13 seconds There will be a substantial growth in the billet manufacturing facilities what we have commissioned now. We'll see a 22:20 22 minutes, 20 seconds growth in the billet as well. And there will be a partial growth in our final product like structure TMT with the 22:28 22 minutes, 28 seconds predation and some more feeding of raw material into the steel segment 22:34 22 minutes, 34 seconds in uh CRM complex. Since we are going to commission the gal volume line 22:41 22 minutes, 41 seconds within uh this month and or maybe early next month. So we'll see the there will be a substantial volume growth in the 22:49 22 minutes, 49 seconds flat product in the gal volume as well as in the color ported. We expect that color 22:56 22 minutes, 56 seconds portrait is going to be I think uh almost the double 23:04 23 minutes, 4 seconds uh volume what we saw in this year last year. 23:10 23 minutes, 10 seconds Apart from that there will be a substantial uh value we 23:16 23 minutes, 16 seconds will see from the cost side also because uh there will be a lot of new power 23:24 23 minutes, 24 seconds plants coming up which is going to be commissioned as well and so whatever little power we are buying from the grid 23:32 23 minutes, 32 seconds we'll see there will be a effect positive effect on the cost side of the power 23:41 23 minutes, 41 seconds uh I think majorly apart from this aluminium plant also 23:47 23 minutes, 47 seconds will be commissioned this year uh we have set up a new 23:54 23 minutes, 54 seconds caster with foil stock and foil plant so we'll see this year the plant will get commission and slowly slowly it will be 24:03 24 minutes, 3 seconds stabilized so there will be a lot of action this Great sa wonderful that's very well 24:13 24 minutes, 13 seconds explained. Uh the second question I had was on you know actually aluminium. Now we have seen aluminium prices remaining 24:21 24 minutes, 21 seconds very you know robust worldwide. uh for us since you know we are actually converters uh so how do you see margins 24:31 24 minutes, 31 seconds is it like a pass through for us or we get some incrementally higher margins on the elevated LM aluminium price 24:41 24 minutes, 41 seconds I think we should see as a fast through you know uh maybe because of little bit 24:48 24 minutes, 48 seconds more advantage we get because the working capital involvement and the kind of uh integration what we are doing from 24:57 24 minutes, 57 seconds the backward to the forward we'll see a lot of value coming up because we'll be now we are buying the foil stock once we make our own foil 25:06 25 minutes, 6 seconds stock we'll see the margin also increasing but related to your aluminium price we should not be very very much worried 25:14 25 minutes, 14 seconds whether we are going with a backward integration where we will have a better margins and also 25:22 25 minutes, 22 seconds uh you know with the rises of the aluminium is concerned, it is going to be almost cost. 25:31 25 minutes, 31 seconds Okay, great to know. Uh just one last question if I may. I just wanted to get an idea on the capeex for this year and next one if you can. 25:44 25 minutes, 44 seconds So uh we have declared a KEX like in Ram Surup we commissioned a blast fund for now we 25:50 25 minutes, 50 seconds are planning to set up a uh SMS shop and the steel plant which is 25:58 25 minutes, 58 seconds going to be of little less than a million ton to be more prescribed 800,000 ton the plant is expected to be commissioned 26:06 26 minutes, 6 seconds by end of next year and uh this will have a substantial capex setting up 26:16 26 minutes, 16 seconds the plant but since it is now a brownfield project and uh we will be 26:22 26 minutes, 22 seconds very efficiently we'll be able to do this capex like we have announced 2,700 kes capex 26:30 26 minutes, 30 seconds in this stainless steel downstream activity as well where we are seeing you know comprising of ram sarup and stainless steel and all 26:39 26 minutes, 39 seconds so all these capex is going to be spread in next two two and a half years. So apart from that we are setting up a flat 26:47 26 minutes, 47 seconds product HR plant. Generally to set up a 2 million ton of HR plant it generally cost close to 16,000 to 80,000 crores. 26:56 26 minutes, 56 seconds But in our case only from the HR side we are almost you know one/ird 27:03 27 minutes, 3 seconds uh capex what we have declared because we have all the brownfield facilities and we have all forward and backward 27:09 27 minutes, 9 seconds integration is already integrated. So uh there's nothing to worry. We have a substantial treasury. We are doing the 27:17 27 minutes, 17 seconds good aida and year wise year you are seeing that you know uh there has been a substantial 27:24 27 minutes, 24 seconds increase on the numbers and also as on it's looking very comfortable in case we find there is some kind of a 27:33 27 minutes, 33 seconds shortfall and also we are almost a debtfree company. So buying some kind of a short-term 27:40 27 minutes, 40 seconds debt is not going to be an issue but as on date I don't see that will be a problem till we take some more project ahead. Thank you. 27:50 27 minutes, 50 seconds Greatly in addition to thank you. Yeah. 27:56 27 minutes, 56 seconds Yeah. I think he was having one more question. Please carry. 28:02 28 minutes, 2 seconds Um sir uh the one more question I had was on stainless steel. Now if I look at the aeta purton of a stainless steel I 28:10 28 minutes, 10 seconds know it's not great to look at it from a quarterto quarter basis but one of your peers had reported and their ebita 28:17 28 minutes, 17 seconds burton actually grew uh quarteron quarter. Now in our case we have seen a slight contraction in a burton. So just 28:25 28 minutes, 25 seconds wanted to understand whether it is you know a better burden contraction associated with some uh cost during the ramp up phase or something or uh how do 28:34 28 minutes, 34 seconds we see margins going ahead because stainless steel prices have risen uh and uh and and your one of your peers has 28:42 28 minutes, 42 seconds given a very optimistic guidance for FI27. 28:47 28 minutes, 47 seconds See first of all they are into the flat product. We are into a long product and this is this was a very old plant which 28:56 28 minutes, 56 seconds was taken in the NCLT few years before. 29:02 29 minutes, 2 seconds So we are here we are almost making you know all the stainless steel from the scrap 29:09 29 minutes, 9 seconds and uh right now our new facility of stainless steel which is coming up in our Udisa plant. We have a complete 29:16 29 minutes, 16 seconds integration like 80% of the raw metal is what we are going to feed from our existing plant and we are getting into a 29:24 29 minutes, 24 seconds very high value added product. So we will have a blend of long product and flat product. But yes in the time to 29:31 29 minutes, 31 seconds come with our power cost of less than two rupees where we are in indor we are paying more than six rupees or seven rupees we are buying scrap. It's not 29:40 29 minutes, 40 seconds that big mega size project and all. So definitely it will have a very positive impactful uh you know differences when 29:49 29 minutes, 49 seconds we commission our UI chain plant. 29:55 29 minutes, 55 seconds Okay great sir. Thank you and all the best. Thank you. 30:00 30 minutes Thank you. The next question is from Shin Kumar from UBS India. Please go ahead. 30:08 30 minutes, 8 seconds Yeah. Hello. 30:10 30 minutes, 10 seconds Hi Shin. Yes sir. Hi sir uh congratulations on a very good set of numbers um to both g and gi uh a bunch 30:19 30 minutes, 19 seconds of questions uh new capex which you have announced on the s side both so what is the end u industry are we targeting in 30:28 30 minutes, 28 seconds both the cases the uh wire stainless steel yeah yeah it's very we 30:35 30 minutes, 35 seconds are targeting pipes and tube market decorative market of pipes tubes. There is a speciality 30:44 30 minutes, 44 seconds pipe market also which is uh for the precision pipe and all. 30:50 30 minutes, 50 seconds Then it is there is some question is on the decorative side of aluminium uh stainless steel what is used in the 30:58 30 minutes, 58 seconds elevators and all you know all these are the decorative part and apart from that you know some of some some special 31:06 31 minutes, 6 seconds category will be catered to the utensils market also and some in the export defense side also. 31:16 31 minutes, 16 seconds words. So um um so then the two question arises here one what kind of a profitability or return ratios on those 31:24 31 minutes, 24 seconds keics you are seeing it seems like these are value added product second uh these will be little different from our current channel sales is that is that 31:32 31 minutes, 32 seconds the right assumption so how are you planning to uh do the to the sales here or you know how you want to target the customer 31:41 31 minutes, 41 seconds this is a B2B market presently all the tube manufacturers in country and outside the country. 31:51 31 minutes, 51 seconds There's a big market for the stainless steel pipe. So we'll be serving the serving to these kind of a customers in 31:59 31 minutes, 59 seconds the tube and pipe segment because we are not thinking to get into a stainless steel tube and pipe because it is a very small business and not a very scalable 32:08 32 minutes, 8 seconds or a big volume where we need to interact ourselves and uh apart from that it's a very open market. India is growing and there's a 32:16 32 minutes, 16 seconds good demand and we are seeing that more and more decorative and being one of a very cheap 32:24 32 minutes, 24 seconds product you know it's not very expensive on the decorative segments and we are seeing in interiors and everywhere around the stainless steel penetration 32:33 32 minutes, 33 seconds is increasing so we'll be able to build up more and more penetration in this category 32:40 32 minutes, 40 seconds sir uh any sense on what kind of a a bit per return or return ratios you're 32:46 32 minutes, 46 seconds looking for this kind of investments generally you know this is a very 32:53 32 minutes, 53 seconds interesting business so I would say generally uh it uh s from around 15 to 20,000 33:01 33 minutes, 1 second rupees a ton but our overall calculation is in the range of 12 to 15,000 33:08 33 minutes, 8 seconds but it's fetching more in this segment because if you're making everything from the iron node to the final steel the 33:15 33 minutes, 15 seconds should be more than 80,000 it's going to be interesting product and apart from that 80% of the ingredient 33:23 33 minutes, 23 seconds you're using from your existing product you know the steel the speciality alloy feroy power is your the brownfield so it's nothing where you 33:31 33 minutes, 31 seconds are building up a raw metal inventory within your capital cycle so the yield of the capital is going to be definitely better and it's also going to create 33:39 33 minutes, 39 seconds more sustainability with this kind of a business if you And uh you know there's going to be a 33:47 33 minutes, 47 seconds lot of potential in the near time to you know expand and to invest more precious money in the value added and more sustainable business. 34:00 34 minutes Got it. Sir Bushi uh one more thing uh in this quarter we can see you know there's a clear uptick in the 34:07 34 minutes, 7 seconds realization for most of our segments. I just want to pick your view here because we have a lull for quite quite some time 34:16 34 minutes, 16 seconds or you know there's uh there's a softness in the realization. So do you think these realiz there is still room for this realization to move up from 34:24 34 minutes, 24 seconds here for most of your products do you think then they will be stable or you see that you know there's a risk for the given the global scenario and all 34:33 34 minutes, 33 seconds there is no chance to go above at from this level because you know now we are entering into a monsoon session 34:40 34 minutes, 40 seconds so and apart from that I think the market is pretty good like if you see we have thea is close to 14% on 34:51 34 minutes, 51 seconds overall you know so I think it's a very decent might be 1% here or there doesn't 34:57 34 minutes, 57 seconds matter and for us if you really ask me market is in none of control we are more 35:05 35 minutes, 5 seconds focused on our efficiency and cost but to be more optimistic and realistic I would say 35:13 35 minutes, 13 seconds uh the business will remain stronger because uh Today still we are you know tensed by the geopolitical issue. 35:24 35 minutes, 24 seconds There's lot of restrictions on the logistic side export market. there's a lot of spending is going to come 35:31 35 minutes, 31 seconds globally like earlier none of the countries used to spend uh you know on the development side and all this with with the new revolution 35:40 35 minutes, 40 seconds and new age what I see with this uh multiple war crisis and all I see India is going 35:48 35 minutes, 48 seconds to have a good say uh in the international participation 35:55 35 minutes, 55 seconds and the metal company in India will grow domestically with the internal demand and also will have an edge 36:03 36 minutes, 3 seconds and uh you know the opportunity to participate internationally also in a very big way. 36:14 36 minutes, 14 seconds Fair enough. Um definitely and I think there's a change in uh political atmosphere um in West Bengal as well. I 36:22 36 minutes, 22 seconds hope that that also favors us. Um one more bit sir like if I look at the quarter a bit it's very good and if I 36:30 36 minutes, 30 seconds annualize it we will be you know it's like we crossing more than 2,800 crores. 36:36 36 minutes, 36 seconds Uh so how should we think about it? So one leg is this where we have already achieved this number then and then there 36:43 36 minutes, 43 seconds are incremental things which are happening. For example when I look I was looking at your presentation the second phase of CRM has only started in April. 36:51 36 minutes, 51 seconds So I think uh it was not a contributor if if if my assumption is right it was not a contributor in the fourth quarter. 36:57 36 minutes, 57 seconds So the benefit should come in F27 then again as per your presentation you should be finishing your phase 2 of aluminium u right within FI27. So some 37:06 37 minutes, 6 seconds benefit of that should come. So uh then if I put all these thing together can we look or expect a bida of more than 3,000 37:15 37 minutes, 15 seconds cr for f27 shell when I told you last time I remember I was always speaking close to 37:24 37 minutes, 24 seconds 1800 to 2,000 kita for this year. You remember all my Yes. 37:29 37 minutes, 29 seconds And fortunately we landed into 2425 including other income and on this realistic term it was 37:36 37 minutes, 36 seconds on the operation was close to 2,300 plus correct yes I would I would be little bit more conservative you know like I don't want 37:45 37 minutes, 45 seconds to say because you know for us uh I've been always very very conservative and prudent on my stay on 37:52 37 minutes, 52 seconds my project and on my targets and all but what's wrong with my assumption here if I simply say that I understand So you 37:59 37 minutes, 59 seconds will be you're not wrong. You're not wrong. But maybe nearby maybe plus or maybe 5% here and there. I expect you 38:06 38 minutes, 6 seconds know you're not wrong. You're right. 38:13 38 minutes, 13 seconds Any sense if we can if we can get from you or Deepak G if not now even later is helpful. what kind of a bit of contribution you expecting from the CRM 38:21 38 minutes, 21 seconds and an aluminium plant in FI27 that can help us like have some set of uh you know contribute contribution from them. 38:29 38 minutes, 29 seconds Is it possible to share that? I think the CRM IITA is going to be close to 10 38:36 38 minutes, 36 seconds to 11,000 rupees per ton this year from the 38:42 38 minutes, 42 seconds and the aluminium I think should remain between 35 to 40,000 rupees but 38:49 38 minutes, 49 seconds because this year you know uh please yeah the timeline of aluminum uh then because it's still in the commission so 38:56 38 minutes, 56 seconds can we expect it to happen in first half of FI27 So first half we will be starting commissioning and all. So we'll start seeing the effect in the second half. 39:06 39 minutes, 6 seconds Okay. 39:07 39 minutes, 7 seconds More better and from because you know the all these high-tech plant it takes time and it's a green field check what the new foil plant and all has come. So this 39:15 39 minutes, 15 seconds will take time but yes definitely it will have more and more positive impact time to time with the quarter to quarter. 39:24 39 minutes, 24 seconds The la just last bit and then I join back the queue on the battery foil. Uh so uh we our product has qualified with the customers. 39:31 39 minutes, 31 seconds Yeah. Yeah. It we are all done. 39:34 39 minutes, 34 seconds Uh I'm not sure uh if you would like to but would you like to share the name of the customers who are likely to 39:41 39 minutes, 41 seconds we have done the uh we have done this you know there's a non-disclosure agreement. Sure. 39:48 39 minutes, 48 seconds Because but still you know we have been qualified long back once we see a battery line coming up middle of this 39:56 39 minutes, 56 seconds year and all. So we will be penetrating in the battery and there will be more than one customer. 40:03 40 minutes, 3 seconds Sorry, there will be more than one customer. Two to three customers are there. Two or three customers. Okay. 40:11 40 minutes, 11 seconds Got it. 40:14 40 minutes, 14 seconds In addition to this as far as as far as future guidance for AIA the sir is always be in a very very conservative 40:22 40 minutes, 22 seconds but if you see in our finance with the commissioning of aluminium with the commissioning of CRM with the commissioning of.5 million ton of sponge 40:31 40 minutes, 31 seconds iron and with the commissioning of blast furnish as well in the last financial year the fullear impact will come up in 40:38 40 minutes, 38 seconds this financial year. So definitely we will be achieved whatever we have achieved in the last financial year will 40:47 40 minutes, 47 seconds always say on a very conservative sign because he always believe only in the committing less delivering more 40:56 40 minutes, 56 seconds following only on this policy it's fair I think this year you know we will be very comfortable with our 41:03 41 minutes, 3 seconds growth close to 30% you know over this year the last year very comfortably. Yeah. Yeah. 41:11 41 minutes, 11 seconds Yeah. I can like if if if all your project execute and if the realization doesn't really hurt then I don't think so any reason that why we should not 41:19 41 minutes, 19 seconds have a 30% uh profit growth profitable growth. 41:23 41 minutes, 23 seconds Yes will always believe on the volume growth will never depend on the realization side. If you look into our 41:30 41 minutes, 30 seconds last four quarter financials, you will find we will be always giving the sustainable beta or sustainable volume growth is there over a period of time. 41:42 41 minutes, 42 seconds Fair enough. Good uh good show sir. 41:44 41 minutes, 44 seconds Good. Thank you so much. Uh I'll join back the queue. Thank you. Thank you. 41:51 41 minutes, 51 seconds Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants, please limit your questions to two per 41:58 41 minutes, 58 seconds participant. Should you have a follow-up question, we would request you to rejoin the queue. We have next question from Ashish Kajar from Noama Wealth Management. Please go ahead. 42:10 42 minutes, 10 seconds Hi, thanks for the opportunity and many congratulations again for good set of numbers and delighted to hear about your 42:17 42 minutes, 17 seconds midterm growth plans. Thank you so much for that. Thank you Ashish. I hope she keeping you happy with all all your questions all the time and celebrating. 42:27 42 minutes, 27 seconds Yes sir. So far it's doing good. 42:30 42 minutes, 30 seconds So uh I have two questions. Um uh in fact uh if I look at uh our inventory as well as payable days that has increased 42:37 42 minutes, 37 seconds significantly uh in this quarter or maybe in this year. So is there any change in the strategy? I understand that maybe uh you know we may have 42:46 42 minutes, 46 seconds booked some other some higher iron or coal in order to take advantage of a lower prices earlier which could have 42:54 42 minutes, 54 seconds increased our inventory days uh is so and what about the payable days why it has increased so any change in the 43:01 43 minutes, 1 second business strategy on that front that's my first question no I can take you this questions as far as sharply increase in the inventory 43:10 43 minutes, 10 seconds only because of you look into the last year financial year There were no commissioning of blast furnace. There were no commissioning of CRM. So one 43:18 43 minutes, 18 seconds factor is we are we are positioning the uh raw material of CRM as well as the blast finish cooking coals and some 43:26 43 minutes, 26 seconds things and accord and in addition to this also we are taking the positioning of iron or iron making uh raw materials 43:34 43 minutes, 34 seconds that is if you look into our financials also our inventory level in the last quarter was 99 days. Now we are taking 43:42 43 minutes, 42 seconds the positioning of 123 days of inventory days. This is the only reason for increasing our inventory. 43:50 43 minutes, 50 seconds Okay. So we have taken higher than what is warranted as of now and it will be liquidated in first or second quarter. Am I right in that? Correct. 43:58 43 minutes, 58 seconds Okay. And what about payable day sir? 44:01 44 minutes, 1 second Payable day is approximately is like 130 days. 130 days. 44:05 44 minutes, 5 seconds Yeah. So it has increased significantly from our normal scenario. So is this a oneoff type or no this is not a oneoff we have a very 44:14 44 minutes, 14 seconds credential our credential is there so we whatever we are procuring most of the raw material on credit basis if you look 44:21 44 minutes, 21 seconds into our cash conversion ratio is very very good okay so that that's great actually it's more of a working capital financing and 44:28 44 minutes, 28 seconds if they are effectively doing it nothing so this is not a one-off it can sustain for longer correct correct 44:35 44 minutes, 35 seconds okay great second question is sir in terms of uh uh cost of or cost of steel making in fourth quarter what kind of 44:43 44 minutes, 43 seconds cost increase we have witnessed because uh if I look at the price hike and a bit peron it's almost half like you know steel a bit person increased by roughly 44:52 44 minutes, 52 seconds around 2600 per ton and price increase is something like 5100 so you know what kind of price increase we have witnessed 45:00 45 minutes in fourth quarter which led to lower no aid pur compared to the price hikes 45:09 45 minutes, 9 seconds I'm not clear. Ashish, can you just repeat once again? 45:11 45 minutes, 11 seconds So sir, uh if I'm comparing fourth quarter AIA pattern of steel versus third quarter, we are seeing that uh 45:19 45 minutes, 19 seconds AITA pattern increased by roughly around 2,600. 45:23 45 minutes, 23 seconds Whereas the price increase in the carbon steel is around 5,100. So you know roughly around 2500 cost increase could 45:30 45 minutes, 30 seconds be there. I was just trying to get a sense of where this cost increased we have witnessed whether there must be we will not be very 45:38 45 minutes, 38 seconds appropriate in answering your question but overall I can say because when you are into such a big ecosystem you have 45:45 45 minutes, 45 seconds your bookings you have your pre-advanced booking for more than two months three months in the system and there are some deliveries 45:54 45 minutes, 54 seconds which has to happen so there there must be lot of old carryover of a lesser price which may be affecting an average outing 46:02 46 minutes, 2 seconds And uh but maybe one of the reason uh and uh there cannot be any other reason because 46:10 46 minutes, 10 seconds whatever the market is this is a very open trial. If the upturn the price which has gone up I some cost 46:17 46 minutes, 17 seconds effect must be there because of cost is increasing because of the vessel rates and all your import prices your limestone everything is going up. So 46:26 46 minutes, 26 seconds there must be some kind of a cost pressure also. 46:28 46 minutes, 28 seconds which maybe also have some kind of a substantial pressure. This is this is basically the restatement of import the 46:39 46 minutes, 39 seconds fluctuation loss the dollar weakness rupee weakness that will be the impact of this cost side also 46:48 46 minutes, 48 seconds uh is it possible to quantify that sir uh that we can share you can 46:55 46 minutes, 55 seconds I can talk to you later on sir on this one yeah yeah okay that's great and all the best for your future plans That's really amazing to see that. Thank you so much. 47:05 47 minutes, 5 seconds Thank you. 47:07 47 minutes, 7 seconds Thank you. The next question is from Satarib Jan from Ambit Capital. Please go ahead. 47:14 47 minutes, 14 seconds Hi, thank you. Uh so first u just a follow up to um Amit's question earlier. 47:19 47 minutes, 19 seconds What uh you um put together different uh moving parts in terms of capex. But what exactly can you try to um what kind of 47:27 47 minutes, 27 seconds capeex can we look at in SI27 specifically? 47:40 47 minutes, 40 seconds Did you answer you? Yeah. Yeah. Yeah. Yeah. 47:43 47 minutes, 43 seconds No. Yeah. Yeah. As far as commissioning of capex in this financial year as our s is already shared the.5 million ton of respond and we will be commissioning. 47:53 47 minutes, 53 seconds No no no they're talking about the value capex not the how much money we are not the capitalization not the Yeah. 48:01 48 minutes, 1 second Now as far as the total capex is required to be incurred is around 10,000 crores of rupees and this financial year we will be incurring around 2,900 cr 48:10 48 minutes, 10 seconds from this financial year and 3,000 cr in the next financial year and balance will be the the next two financial year. 48:18 48 minutes, 18 seconds Okay thank you. Um on that sir um just generally wanted to understand the thought process last few years the 48:25 48 minutes, 25 seconds intent was to remain net cash as depending on um different moving parts for earnings there may be requirement to 48:34 48 minutes, 34 seconds take on short-term debt u as you mentioned um is the company now more comfortable with debt with this size 48:41 48 minutes, 41 seconds what's the thought process on capital structure um as you look at all these caps this won't understand 48:50 48 minutes, 50 seconds very comfortable we had been very very mature in last 25 years all these things we had been handling very prudent so all 49:00 49 minutes these capex what we plan is seeing our cash flows the net cash because you know we don't have any kind of a major debt there's no interest so whatever net cash 49:09 49 minutes, 9 seconds if you see last year on this we must have made close to around 80 90 kes net cash in the company because there's 49:18 49 minutes, 18 seconds hardly any interest cost and I think it's more than 2,000 crores. This year also we expect that we will have a 49:25 49 minutes, 25 seconds substantial cash and when you do a capex you know you have long-term uh plans you know when you buy machines and all you 49:34 49 minutes, 34 seconds get lot of uh time credits and all so I think we are very comfortable as of now nothing 49:42 49 minutes, 42 seconds to worry yeah okay in addition to that sorry 49:48 49 minutes, 48 seconds hello hello in addition to this also I would like to add one More thing as far as debt is concerned in our system we 49:56 49 minutes, 56 seconds have a debt policy in the system is also there. Okay. Our debt will not cross at any point.5x to the total equity in any point of circumstances. So we will 50:04 50 minutes, 4 seconds follow this debt policy and if you look into our financials our sub cash generation over a period of time will 50:12 50 minutes, 12 seconds come up around 2,00 to 2,500 cr and we can easily meet whatever be our capex program in next 3 to four years. 50:22 50 minutes, 22 seconds Okay, thank you for that. So secondly on West Bengal, so you mentioned u there is optimism around improvement in 50:29 50 minutes, 29 seconds infrastructure and all just on your Jamurya location after the HSM the new KC build. Um what kind of optionality is 50:37 50 minutes, 37 seconds there just in terms of land package uh between Jamurya Sambalpur? Um my understanding was that after this capex 50:46 50 minutes, 46 seconds um the land availability might be somewhat limited but correct me if I'm wrong and what are the plans for 50:52 50 minutes, 52 seconds expansion investment all capitalize u in case you're looking at that u that optimism and activity 51:01 51 minutes, 1 second sat for next 3 four years we don't have to worry and we are also in the process 51:08 51 minutes, 8 seconds of procuring more land adjoining our demand because uh I don't see any 51:15 51 minutes, 15 seconds problem as on date and for next we have a clear window for next 3 four years like there's no issue of any land and 51:24 51 minutes, 24 seconds some parcels and all we are already in the process of acquiring and uh looks everything good yeah 51:33 51 minutes, 33 seconds okay thank you so much thank you the next question is from Mr. 51:40 51 minutes, 40 seconds from ICS securities. Please go ahead. 51:45 51 minutes, 45 seconds Hi sir, good afternoon and thank you for the opportunity. Sir my one question only on the stainless steel capex given 51:55 51 minutes, 55 seconds the current circumstances when the government duty protection is more towards the steel 52:02 52 minutes, 2 seconds expanding into the stainless steel where usually the quality control orders had not been there. Just wanted to 52:10 52 minutes, 10 seconds understand uh why we have been you know putting still emphasis on the stainless steel could have been delayed or the ROE 52:18 52 minutes, 18 seconds or ROC of stainless steel versus steel how is it sitting right now 52:25 52 minutes, 25 seconds the the carbon steel prices is close to $800 you know if you talk and the 52:31 52 minutes, 31 seconds stainless steel prices are close to on an average $120 $130 you know I mean to 52:38 52 minutes, 38 seconds say you know $1,200 $1,300. So in our case more than 80% 52:48 52 minutes, 48 seconds raw material for making stainless steel downstream. 52:53 52 minutes, 53 seconds So we are doing a carbon steel development also. We are putting up an HR coil plant and we are also developing 53:01 53 minutes, 1 second in the stainless steel market because the IITA in the stainless steel is better than the carbon steel because it 53:08 53 minutes, 8 seconds is more niche, it is more expensive and also we have an advantage that we are doing a forward integration and it 53:16 53 minutes, 16 seconds also help us to for a proper capital utilization because the working capital load is very less 53:24 53 minutes, 24 seconds for a general people if they want to stainless steel. They have to buy scrap. 53:28 53 minutes, 28 seconds They have to put a inventory of 3 four months and lot of issues are there. But in our case, we have an advantage 53:36 53 minutes, 36 seconds and we are also developing into a new metal where we see that in the time to come, we should be able to position more 53:43 53 minutes, 43 seconds stronger. We started with a small acquisition in the stainless steel. We right now we are doing a run rate of around 130 140 crores every month in 53:53 53 minutes, 53 seconds from last two two and a half year. Now we are thinking of doing a run rate of close to 300 uh 300 crores in next 3 54:00 54 minutes years every month. So the business is different but we have lot of advantage. 54:06 54 minutes, 6 seconds We have our own power. We have our own alloy and what we are doing we are just doing a value addition. For me it is a new business also and we are doing a 54:14 54 minutes, 14 seconds value addition in our existing business also. Strategically we are very different as a standalone industry or our integration if you see industry. 54:27 54 minutes, 27 seconds So in terms of uh ROC is or return ratios at current price point 54:33 54 minutes, 33 seconds how both steel and stainless steel stacked up for you? Ah very difficult question at what hour you are asking me 54:42 54 minutes, 42 seconds this question the hour changes but anyway this is always a better it is always a better I would say in 54:49 54 minutes, 49 seconds comparison with the capital it will have an edge of around more than 20 30% over 54:56 54 minutes, 56 seconds the carbon steel always because it is a limited edition the challenges are more 55:04 55 minutes, 4 seconds and it is a niche market it is not a commodity product. It is a niche product. 55:12 55 minutes, 12 seconds Notice sir that's all from my side and all the best. 55:16 55 minutes, 16 seconds Thank you sir. The next question is from Mr. Rajes Majunar from 361 capital. 55:23 55 minutes, 23 seconds Please go ahead. 55:25 55 minutes, 25 seconds Sure. Just one question from my side. uh what is the status of the ED uh case on 55:32 55 minutes, 32 seconds the on the coal which you mentioned in the note because this is dated 15th April so we are in almost midMay now has 55:40 55 minutes, 40 seconds it been resolved or is there any other thing on this matter and now there's no there is uh there is absolutely not to 55:47 55 minutes, 47 seconds worry because there's nothing they have they have given some letter we are replying and there it's 55:56 55 minutes, 56 seconds nothing to be worried about because there's nothing which is you know of an evidence or you know some something on the statement 56:04 56 minutes, 4 seconds they have given a notice and that statement will not stand because it has been applied to almost major steel industry in the city we are one of them 56:12 56 minutes, 12 seconds being one of the popular steel industry so we are on the highlight but we don't have to worry and just to follow up with the political 56:20 56 minutes, 20 seconds change now established uh this will be I can't answer all these I I can't answer all these your question should read it separately and take the answers. It's not good. 56:29 56 minutes, 29 seconds Sure sir. Yeah. Yeah. Thank you. 56:34 56 minutes, 34 seconds The next question is from Tanoj Nangalia from FKP Securities Limited. Please go ahead. 56:41 56 minutes, 41 seconds Good evening everyone. Congratulations to the management on a strong set of numbers for FY26. 56:48 56 minutes, 48 seconds So my first question is on the stainless side. So Nikon is up nearly 20% since December on the Indonesia supply cuts. 56:56 56 minutes, 56 seconds So do we see do we see any challenges in the nickel sourcing going forward and is the cost increase something we can fully pass through to the customers? 57:08 57 minutes, 8 seconds Uh nickel is always going to be a challenge. 57:12 57 minutes, 12 seconds Nickel in the stainless steel always going to be a challenge. It is not going to be a easy affair. But in our 57:19 57 minutes, 19 seconds portfolio of our product more than 70% or close to 75% our stainless is majorly without nickel 57:29 57 minutes, 29 seconds you know we are focusing on the grade which has a minimistic or no nickel 20 25% to cater the complete basket we 57:38 57 minutes, 38 seconds have to have a nickel we have to import the nickel from Indonesia also we import this we have to import the scrap which has a high 57:47 57 minutes, 47 seconds content of nickel. But yes uh it is generally you know in most of the time you know it is pass on. So 57:55 57 minutes, 55 seconds whatever the nickel price goes up the style price goes up but there's always a carryover of your inventory plus and 58:01 58 minutes, 1 second minus which is a regular transitional process which everybody has to abide by. 58:09 58 minutes, 9 seconds Okay sir got that. And sir next question is on the aluminium business side. So is there any decrease in the export order 58:16 58 minutes, 16 seconds booking due to the ongoing geopolitical conflict and are we able to service the we are oversold we are over sold we are not able to 58:25 58 minutes, 25 seconds supply to the international market that's yeah okay uh and also with the rupee depreciating do we see there is a margin 58:33 58 minutes, 33 seconds tailwind given in the armonium side the export business these are all temporary 58:42 58 minutes, 42 seconds everybody knows you know India is a dominating market they have a special supplies and all. So whatever is there it is all pass on plus or minus 58:50 58 minutes, 50 seconds maybe periodically one or two month it matters but the consumer they take up the price they take up the heat because 58:57 58 minutes, 57 seconds once people have to use aluminium there's no substitute so it is like general other industries. Yeah. 59:06 59 minutes, 6 seconds Okay. Thank you so much sir. 59:09 59 minutes, 9 seconds Thank you. The next question is from Harish Obraan from Unifi Capital Private Limited. Please go ahead Mr. Harish. 59:18 59 minutes, 18 seconds Hi uh good evening. Thanks for the opportunity. Uh just one question from my side on uh the central pollution 59:25 59 minutes, 25 seconds control board u uh you know what came out in terms of the observations. So can you explain what was the non-compliance? 59:35 59 minutes, 35 seconds No there was some kind of a there was some kind of uh you know the error which was 59:43 59 minutes, 43 seconds identified by the board inspection which was resumed in four five days and 59:51 59 minutes, 51 seconds we have taken all the action and in the time to come we will take take it more seriously and see how best we can deliver. 1:00:00 1 hour Yeah. So within this uh 3 months time period uh do you believe you'll be able to fully address and complant uh and comply with what observations were given? 1:00:10 1 hour, 10 seconds Yeah yeah yeah not a problem. All right sir. Yeah. Thanks. 1:00:15 1 hour, 15 seconds Thank you. The next question is from Pri Jan from Nishai. Please go ahead. 1:00:23 1 hour, 23 seconds My question is being covered. So thanks for the opportunity but it has been already covered. 1:00:30 1 hour, 30 seconds Thank you. Thank you. 1:00:33 1 hour, 33 seconds I have my flight to catch. Uh can we Thank you, sir. Can you make a This was the last question, sir. Yeah. Yeah. Yeah. Yeah. Okay. 1:00:41 1 hour, 41 seconds Okay. Thank you. As there are no further questions from the participants, I now hand the conference over to management for closing comments. 1:00:49 1 hour, 49 seconds Thank you. 1:01:00 1 hour, 1 minute Thank you on behalf of Sham Metallics Energy Limited. That concludes this conference. Thank you for joining us and 1:01:08 1 hour, 1 minute, 8 seconds you may now disconnect your lines. Thank you. Thank you. Thank you sir.