Usha Martin Ltd — Q4 FY26

Usha Martin Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=YpYwAY-xCiU Published: 13 days ago

0:00 Ladies and gentlemen, good day and welcome to the earnings conference call of OSHA Martin Limited. 0:07 7 seconds As a reminder, all participant lines will be in the listenon mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:16 16 seconds Should you need assistance during the conference call, please signal an operator by pressing start and zero on the touchstone phone. Please note that 0:24 24 seconds this conference is being recorded. I now hand the conference over to Mr. Dashi Singh of CT India. Thank you and over to you sir. 0:33 33 seconds Thank you Rutuja. Good evening everyone and thank you for joining us on Usha Martin's Q4 S526 earnings conference call. 0:44 44 seconds We have with us Mr. Rajiv Jawar managing director of the company, Mr. Abijit Paul, Chief Financial Officer and M. 0:53 53 seconds Shria Javar from the strategy and growth team of the company. 0:58 58 seconds We hope all of you have had the opportunity to refer to the earnings document that we shared with you earlier. 1:04 1 minute, 4 seconds We will initiate the call with opening remarks from the management following which we will open the forum for Q&A session. 1:12 1 minute, 12 seconds Before we begin, I would like to point out that some statements made in today's call may be forwardlooking in nature and a disclaimer to this effect has been included in the earnings presentation. 1:23 1 minute, 23 seconds I would now like to invite Mr. Rajiv Jawa to make his opening remarks. Thank you and over to you sir. 1:32 1 minute, 32 seconds Good afternoon everyone. 1:34 1 minute, 34 seconds On behalf of the USA Martin management team welcome to our earnings call for the fourth quarter and full year ended March 31 2026. 1:46 1 minute, 46 seconds I'll start with the financial results cover the key drivers behind them and also share our outlook for the year FI27. 1:58 1 minute, 58 seconds We closed FI26 with consolidated revenue of rupees 3,691 crores. 2:06 2 minutes, 6 seconds Operating AIA grew from 597 crores last year to rupees 705 crores this year reflecting a margin of 19.1%. 2:19 2 minutes, 19 seconds Operating cash flow conversion was healthy at 104% of the operating aida. 2:26 2 minutes, 26 seconds We ended the year with a net cash position of rupees 332 crores compared to a net debt of rupees 63 crores in the previous year. 2:38 2 minutes, 38 seconds In Q4 revenue stood at rupees 979 crores up 9.3% yearonear. 2:48 2 minutes, 48 seconds Operating AITA was rupees 212 crores, the highest since the sale of the steel 2:55 2 minutes, 55 seconds business with margins at 21.6% and AITA per ton at approximately 39,500 rupees per metric ton. 3:07 3 minutes, 7 seconds So what drove these numbers? 3:10 3 minutes, 10 seconds Our international rope business performed well especially in Europe and the Americas. 3:17 3 minutes, 17 seconds Segments like cranes, elevator and mining saw good traction. 3:23 3 minutes, 23 seconds Over the past few years, we have invested in expanding capacity and deepening our technical capabilities of high performance ropes in India. 3:35 3 minutes, 35 seconds That ground work is paying off with Raji's upgraded manufacturing capability 3:42 3 minutes, 42 seconds and Brenton Shaw's brand integrated together. We are executing larger, more complex projects for global OEMs and end users. 3:54 3 minutes, 54 seconds During the quarter, we executed a landmark OceanMax project at our Ranchi facility, including the largest single 4:02 4 minutes, 2 seconds reel row production ever undertaken in our Ranchi plant. 4:07 4 minutes, 7 seconds This is a tangible example of the capability our recent capital investments have created. 4:17 4 minutes, 17 seconds Alongside this, our one USAHA Martin program continues to drive efficiency 4:24 4 minutes, 24 seconds across the group. So our cost bases become structurally leaner while revenue is shifting towards higher value 4:33 4 minutes, 33 seconds products, geographies and applications giving us clear operating leverage. 4:40 4 minutes, 40 seconds Having said that, the operating environment did pose some challenges this quarter. The ongoing conflict in 4:48 4 minutes, 48 seconds the Middle East led to slower customer activity and project delays in both Dubai and the Saudi Arabian markets. 4:57 4 minutes, 57 seconds Supply chain in this region were also disrupted affecting the timing of some shipments. 5:06 5 minutes, 6 seconds volumes in the Middle East came in below normal levels. The broader geopolitical situation also created tightness in raw 5:14 5 minutes, 14 seconds material availability putting pressures on input costs. 5:19 5 minutes, 19 seconds However, we were able to manage through this effectively. 5:25 5 minutes, 25 seconds First, we proactively built additional raw material inventory to ensure continuity of supply with no disruptions 5:34 5 minutes, 34 seconds to production at all. Second, in wire and LRPC, we passed through the input 5:41 5 minutes, 41 seconds cost increases, so margins were not impacted. Third in row, a better product 5:48 5 minutes, 48 seconds mix with a favorable shift towards higher value added applications improved realizations and margins while also 5:57 5 minutes, 57 seconds helping manage volatility in rod and gas prices. 6:02 6 minutes, 2 seconds Fourth, while the Middle East was softer, we continued to see healthy demand in other markets which more than compensated. 6:12 6 minutes, 12 seconds And fifth, faster decision making meant we stayed ahead of the situation rather 6:18 6 minutes, 18 seconds than reflecting to it, rather than reacting to it. 6:27 6 minutes, 27 seconds All in all, the way we navigated this quarter gives us confidence in the 6:33 6 minutes, 33 seconds resilience of our business model which is very diversified across products and industries and geographies. 6:45 6 minutes, 45 seconds Looking ahead, growth remains a key priority. 6:49 6 minutes, 49 seconds There are three areas that give us confidence about the next financial year of this financial year ahead. The first area is value added rope applications. 7:01 7 minutes, 1 second Oil and offshore elevators, port cranes and mining. We have built references and 7:08 7 minutes, 8 seconds field performance data in these segments over time and the track record now lets us approach a wider set of customers. 7:18 7 minutes, 18 seconds We are already seeing this play out with growing order book from new customers 7:24 7 minutes, 24 seconds for H1 this financial year. In oil and offshore specifically there is an added tailwind. More 7:34 7 minutes, 34 seconds countries are prioritizing energy security and that's driving demand that we are well positioned to capture 7:44 7 minutes, 44 seconds beyond core rope. Some of our newer business verticals are maturing well. 7:50 7 minutes, 50 seconds Ocean fiber synthetic business and plasticated LRPC are two examples where 7:57 7 minutes, 57 seconds the time we put to product development, technology work and customer approvals have created platforms that are ready 8:05 8 minutes, 5 seconds for the next stage of growth. We expect meaningful scale up 8:11 8 minutes, 11 seconds in FI27 and beyond. And finally, from a capital allocation standpoint with 8:19 8 minutes, 19 seconds strong operating cash flows and a positive net cash position, we have the bandwidth to invest from internal 8:26 8 minutes, 26 seconds approvals. We'll continue targeted capital expenditure where demand visibility is clear and we are also 8:34 8 minutes, 34 seconds evaluating selective organic and inorganic opportunities in markets where our footprint is still limited. 8:43 8 minutes, 43 seconds In summary, we enter FI27 from a place of strength, a healthy 8:50 8 minutes, 50 seconds balance sheet, a richer product mix, and growth engines that are beginning to deliver. The hard work of building the 8:58 8 minutes, 58 seconds foundation is largely done. Now, it's about execution and scaling up. 9:04 9 minutes, 4 seconds With this, I would now like to invite our CFO, Mr. Vajit Paul to take you through the financial highlights for the 9:13 9 minutes, 13 seconds quarter and the year ended. Thank you. 9:18 9 minutes, 18 seconds Thank you. Uh a very good afternoon to everyone. I will now provide a brief overview of the company's operating and 9:26 9 minutes, 26 seconds financial performance for the quarter and full year ended 31st March 26. 9:34 9 minutes, 34 seconds Starting with the fourth quarter, consolidated revenue was 979 crores, up by 9.3% yearonear. 9:43 9 minutes, 43 seconds Rope revenues grew by about 14.8%. 9:47 9 minutes, 47 seconds Wire revenue saw a notable 31.2% increase while electricity was lower by 20.4%. 9:57 9 minutes, 57 seconds Operating AIDA for the quarter came in at rupees 212 cr up 52% 10:04 10 minutes, 4 seconds with margin extending to 21.6% 6% and evid the per turn of nearly 39,500 10:12 10 minutes, 12 seconds in a challenging metric environment marked by supply chain disruption and elevated input cost 10:20 10 minutes, 20 seconds for uh from continuing operation at rupees 155 cr for the full year FI26 10:29 10 minutes, 29 seconds consolidated revenue was rupes 3691 cr up 6.2% 2% 10:36 10 minutes, 36 seconds performance during the year continued to be led by our core businesses. 10:43 10 minutes, 43 seconds revenues grew by approximately 8% for the full year while W segment saw strong revenue growth of around 24%. 10:53 10 minutes, 53 seconds International revenues now account for 57% of total topline up from 55% last 11:00 11 minutes year reflecting good traction across global markets. 11:06 11 minutes, 6 seconds Operating AIDA grew by 18% to 705 crores with margin improving to 19.1% from 17.2%. 11:19 11 minutes, 19 seconds operating evict part also improved to approximately 34,100 for the year 11:26 11 minutes, 26 seconds compared to around 30,100 last year that from continuing operations 11:32 11 minutes, 32 seconds increased to rups 491 cr compared to rs 46 cr last year 11:40 11 minutes, 40 seconds we have made meaningful improvement on the cop side this year our one martini program is now showing up clearly In the 11:48 11 minutes, 48 seconds numbers, hit the employee cost came down 3% and administrative expenses declined by over 11:56 11 minutes, 56 seconds 7% year on year even as we grew the top line by 6%. 12:02 12 minutes, 2 seconds Our finance cost came down by around 10 crores as we repay our debt amounting to rupees 192 cr. 12:11 12 minutes, 11 seconds The progress during the year is best reflected in the strength of our cash generation. 12:17 12 minutes, 17 seconds Operating cash flow stood at rupees 736 crores translating into a conversion of 12:23 12 minutes, 23 seconds approximately 104% of operating with after funding capex of rupes 198 crash 12:32 12 minutes, 32 seconds flow stood at rupees 457 cr. This was achieved by consciously building 12:38 12 minutes, 38 seconds inventory buffers to manage supply chain disruption due to the ongoing geopolitical situation. 12:46 12 minutes, 46 seconds Even then, net working capital days improved to 194 days from 199 last year 12:53 12 minutes, 53 seconds and growth improved to 20.6% from 19.3%. 13:00 13 minutes As a result, we closed the year with a consolidated net cash position of rupees 332 crores and with standalone operations now entirely de. 13:10 13 minutes, 10 seconds This is an important milestone for the company. Over the last few years, we have moved from a phase of delivering to a position of balanced strength. 13:20 13 minutes, 20 seconds This gives us the ability to fund growth through internal acrals, remain resilient in volatile markets and 13:28 13 minutes, 28 seconds maintain discipline in capital allocation. 13:32 13 minutes, 32 seconds To conclude, FY26 has given us solid foundation to support the next phase of growth. We will continue to invest with 13:41 13 minutes, 41 seconds a clear focus on return, cash generation, and long-term value creation. This brings me to the end of my address. 13:50 13 minutes, 50 seconds I will now request the operator to open the line for the question and answer session. Thank you. 13:58 13 minutes, 58 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 14:07 14 minutes, 7 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 question. 14:17 14 minutes, 17 seconds Ladies and gentlemen, we will wait for a moment while the question Q assembles. 14:37 14 minutes, 37 seconds The first question is from the line of Aman Kr Salia from AK securities. Please go ahead. 14:44 14 minutes, 44 seconds Good evening sir. First of all, congratulation to the management on delivering a strong set of results along 14:51 14 minutes, 51 seconds with an attractive division payout. Sir, a few questions regarding this quarterly result. 14:58 14 minutes, 58 seconds U the number one is su though the profit is excellent the margins are very good 15:05 15 minutes, 5 seconds but the as far as volume is concerned which is still concerning. I think the volume has not picked up and what is the reason behind that? 15:18 15 minutes, 18 seconds Uh thank you for the question. Um uh so in terms of volume growth uh for this quarter volume growth in ropes was at 15:25 15 minutes, 25 seconds about 5%. U you know like we mentioned the focus has increasingly for us moved towards specialized and high performance 15:33 15 minutes, 33 seconds rope applications. Um and in those categories tonnage growth is not always linear but we do have better quality of 15:40 15 minutes, 40 seconds revenue with stronger uh realizations and healthier margins. 15:45 15 minutes, 45 seconds That being said uh you know in this quarter particularly the row volumes came in lower than our expectations uh 15:52 15 minutes, 52 seconds because in the Middle East because of the crisis we did see demand being uh impacted because of the you know the 15:59 15 minutes, 59 seconds overall geopolitical situation. So that did have an impact of about 900 tons or 16:06 16 minutes, 6 seconds so for uh this particular quarter. um had we had that we would have been at about you know 8% uh growth uh in growth 16:14 16 minutes, 14 seconds for the quarter but that being said in FY27 the priority is volume growth while at the same time maintaining the qual 16:23 16 minutes, 23 seconds quality of mix and with the groundwork that we've done uh you know over the past few quarters and over the past year 16:31 16 minutes, 31 seconds in terms of market development with the capacities being commissioned in Ranchi as well uh we asked confident of uh 16:38 16 minutes, 38 seconds stronger volume growth in the upcoming year. 16:41 16 minutes, 41 seconds Okay. Uh madam, the ongoing crisis in the Middle East, the war between um Iran 16:48 16 minutes, 48 seconds and um other countries, I think it is not going to be last very long. So, uh 16:56 16 minutes, 56 seconds whenever the war ends, I think Iran the sanction on Iran will come to an end. 17:02 17 minutes, 2 seconds And uh since there is lot of uh destruction in Middle East due to this war so I think a huge market will 17:10 17 minutes, 10 seconds create. So how is the company position to the to benefit from this region? 17:17 17 minutes, 17 seconds Uh you are absolutely correct. Of course we all are hoping and expecting that that this should not continue and come 17:25 17 minutes, 25 seconds to an end soon. If that happens definitely we see a huge uh opportunity 17:31 17 minutes, 31 seconds both uh from the reconstruction as as well as from the uh production of oil 17:38 17 minutes, 38 seconds offshore and all the reconstruction activities. So and and and we are well poised to take advantage of of that 17:46 17 minutes, 46 seconds situation. Also we are happy to say while the as Shria mentioned that the demand has been which has has been affected in the fourth quarter because 17:55 17 minutes, 55 seconds of this ongoing conflict but I'm happy to say that our plant operations are normal and everything is safe and once 18:04 18 minutes, 4 seconds the uh situation improves I think we should be able to get uh substantial benefit coming out of the opportunities arising there. 18:14 18 minutes, 14 seconds Okay sir. Sir the margin for the quarter was excellent. It's very very healthy. 18:20 18 minutes, 20 seconds Uh but right now the sea t is going up and at the same time the gas prices are going up. Logistic costs are going up. 18:29 18 minutes, 29 seconds So whether we will be able to maintain the same margin or even better than better the margin. 18:38 18 minutes, 38 seconds Um yes uh you know you're right steel prices gas prices they have been on an increasing trend um since January u you 18:45 18 minutes, 45 seconds know we're happy to say that so far we have been able to pass on the increase uh you know for the wire segment LRPC 18:52 18 minutes, 52 seconds segment as well and that would continue um similarly via ropes also we on the one hand have been able to uh pass on 19:00 19 minutes large part of the increases combined with uh you know the better product mix as well so we've actually as you said we've been able to expand and our 19:07 19 minutes, 7 seconds margins even in uh in this situation where prices have been increasing. Our endeavor would be to continue to do the 19:13 19 minutes, 13 seconds same in the coming quarters. Um and uh yeah yeah I really we hope that you know 19:22 19 minutes, 22 seconds earlier earlier we were thinking that you know earlier what we had been saying that between 18 to 19% we feel that uh 19:30 19 minutes, 30 seconds uh you know even with the product mix and everything at least we should be able to look at minimum of 20% uh uh 19:38 19 minutes, 38 seconds operating margin and as also we have been mentioning even earlier our focus would always be to improve the overall 19:47 19 minutes, 47 seconds uh uh absolute AITA numbers uh and these can change because of the product mix changing in a particular quarter but 19:56 19 minutes, 56 seconds overall we are pretty optimistic that we should be able to improve our margins. 20:01 20 minutes, 1 second Okay sir and one more question uh related to the synthetic sling and LRPC. 20:07 20 minutes, 7 seconds So any breakthrough or any meaningful growth we can see in in the coming uh in this ongoing financial year? 20:16 20 minutes, 16 seconds Yeah on the plasticated LRPC you know we have been working with few customers for their approvals and I'm happy to say that we have progressed well on those. 20:24 20 minutes, 24 seconds It takes uh uh some time to get those approvals. So we are we are working with few of the global players and we are 20:33 20 minutes, 33 seconds very close to coming to that and once that is done in next few weeks we see the opportunity of uh getting into the 20:42 20 minutes, 42 seconds global supply export market. So I'm sorry to interrupt you sir we are 20:50 20 minutes, 50 seconds unable to hear you clearly your voice is breaking. 20:53 20 minutes, 53 seconds Can you hear can you hear me now? Yes, please go ahead. 20:59 20 minutes, 59 seconds Yeah, so we we are expecting a healthy growth on the plasticated LRPC once these approvals uh are in place in the 21:06 21 minutes, 6 seconds coming few weeks as well as on the uh synthetic slings. uh the very first year 21:14 21 minutes, 14 seconds we have been able to get some uh very good traction with approvals with customers and repeat orders and we 21:21 21 minutes, 21 seconds expect this also to significantly grow in the next uh in this year and the coming years 21:29 21 minutes, 29 seconds and so the last one is how the uh European and US market is looking for us. 21:37 21 minutes, 37 seconds Um so the European market uh is uh is you know as you know a very important market for us. It's about 26% of our top 21:44 21 minutes, 44 seconds line. U it performed well in this uh in this financial year and the outlook is positive for the next year as well. Um 21:52 21 minutes, 52 seconds all of the changes we made in terms of the integrated model between the manufacturing and the Brunenshaw brand that has started uh you know giving us 22:01 22 minutes, 1 second the the uh the dividends and it's working well for us. It's helped us increase our share with the premium 22:07 22 minutes, 7 seconds customers both the OEM and especially in the the high performance segments like 22:13 22 minutes, 13 seconds trains uh and mining. Um second we on 22:22 22 minutes, 22 seconds uh in Europe so that is helping us work more closely with the customers and we're providing them value added services instead of just buying the 22:31 22 minutes, 31 seconds product. So that and increases the the stickiness that we have with customers as well. Um going 22:39 22 minutes, 39 seconds forward is ma'am we are unable to hear you. 22:50 22 minutes, 50 seconds Huh? 22:52 22 minutes, 52 seconds Hello your sound is breaking. Can you hear me now? Yeah. 22:59 22 minutes, 59 seconds Um yeah. So and and going forward as well the order book is looking strong which uh which gives us you know good 23:07 23 minutes, 7 seconds visibility going into uh H4 and what about US market 23:21 23 minutes, 21 seconds in terms of the growth from 7% of our top line went to 9% of our top line for this year. So even though you know on 23:28 23 minutes, 28 seconds the ground it has its share of challenges around tariffs, trade uncertainties etc. We do see good 23:35 23 minutes, 35 seconds opportunities um it is a high uh you know value market uh so you know elevator ropes again ropes mining ropes 23:43 23 minutes, 43 seconds the work that we've done over the last few years um did support us in uh you know to navigate these uh the challenging times. Um so going forward 23:51 23 minutes, 51 seconds as well uh still our market share in the US is sub 5% so there is tremendous opportunity for growth. 23:59 23 minutes, 59 seconds Sorry to interrupt Mr. Raman. May we request that's all from my side. Thank you. 24:04 24 minutes, 4 seconds Thank you. The next question is from the line of Venet Taco from plus 91 EMC. Please go ahead. 24:11 24 minutes, 11 seconds Yeah. Hi sir. Congratulations on the recovery margins and the great results. 24:15 24 minutes, 15 seconds Uh I had a couple of questions regarding uh there is an increase in a debt uh agent income reduction in interest as 24:24 24 minutes, 24 seconds well even though the debt reduction is not that great and we have also seen a higher realization 24:31 24 minutes, 31 seconds quite a bit. So would you expect a similar realization going forward or would it be the same? 24:40 24 minutes, 40 seconds Abjit can you answer the debt and the interest cost? 24:47 24 minutes, 47 seconds So on the uh now one question was regarding other income right? So yes sir on the other income for this 24:55 24 minutes, 55 seconds current quarter includes the refund uh on which we have got interest. So that interest component of 19 crores is 25:02 25 minutes, 2 seconds included in other income. So that is one and on the interest cost yes there has been a substantial reduction compared to 25:09 25 minutes, 9 seconds last year. So we have repaid around 193 crores in uh uh borrowing and we are debt free across all the geographies 25:18 25 minutes, 18 seconds except one. So uh so there hasn't that is the reason behind decrease in decline in the interest cost 25:26 25 minutes, 26 seconds and in terms of the realization uh as we mentioned in our opening remarks we had we have been able to develop certain uh 25:36 25 minutes, 36 seconds certain uh products in our international market and built up certain good customer base 25:43 25 minutes, 43 seconds for oil offshore crane and mining and we have a fairly healthy order book in the first half of this year in H1. We hope 25:52 25 minutes, 52 seconds the the the uh realizations would continue to be healthy. 25:59 25 minutes, 59 seconds I'm sorry for margins as well. Uh will uh can we do 19% in couple of years or it's going to be 26:07 26 minutes, 7 seconds uh more than 19% or I meant to say can we do more than 19% going forward? 26:15 26 minutes, 15 seconds Yes. uh I mean uh for for this year it was um above 19% and this quarter uh we did close to 22% and you know as he 26:24 26 minutes, 24 seconds mentioned that we are confident of sustaining margins at uh the 20% range because of the you know the overall better mix and u the the high 26:33 26 minutes, 33 seconds performance ro segment that we are targeting and uh we have mentioned that we going to scale down LRTC and we going to work 26:42 26 minutes, 42 seconds on the plastic size as mentioned by a previous participant as well. So LRPC is going to reduce and we are going to uh 26:49 26 minutes, 49 seconds the green traditional one is going to be reduced to by what time like what time will be assumed as traditional LRPC contribution will be negligible 26:58 26 minutes, 58 seconds because we have been reducing on quarter on quarter. 27:03 27 minutes, 3 seconds Yes. I mean uh you know in terms of plasticated LRPC first thing is that uh you know some of the major approvals are uh uh you know 27:12 27 minutes, 12 seconds within a couple of weeks uh it should be done. So that will help ramp up the volumes both in the domestic as well as 27:19 27 minutes, 19 seconds the international market. Um as those approvals come in and then also obviously because it's a project dependent market as the projects uh uh 27:28 27 minutes, 28 seconds materialize as well uh we would gradually convert uh the the uh black LRPC into plastic. We have a capacity 27:37 27 minutes, 37 seconds 6,000 tons perom of plasticated LRPC. So you know to the tune of that we would uh we would we would uh aim to convert over 27:46 27 minutes, 46 seconds a period of time and black LRPC and the black LRPC will be continue at the uh and we expect even 27:55 27 minutes, 55 seconds this year to do around 48,000 tons what we did last year and the plasticated LRPC of close to 5 to 6,000 tons as the approvals uh convert into orders. 28:08 28 minutes, 8 seconds Okay. And so uh in what are the caping guidelines for next three to four years? 28:15 28 minutes, 15 seconds The next two years we are looking at uh next two years we intend to spend uh 28:22 28 minutes, 22 seconds close to 300 crores to increase our manufacturing capacity for elevator ropes and some more opportunities where 28:31 28 minutes, 31 seconds we see for some specialized wires and also increasing our capacity of plasticated LRPC. So in next two years we see a capex of close to 300 crores. 28:41 28 minutes, 41 seconds In addition to this as we mentioned in our opening remarks that we would also look at opportunities of some inorganic growths in areas where we want to expand 28:50 28 minutes, 50 seconds our presence globally particularly in the value added uh uh and rigging and helping us to get close to the customers. 29:02 29 minutes, 2 seconds Thank you so much. 29:08 29 minutes, 8 seconds Thank you ladies and gentlemen. In order to ensure that the management is able to address questions from all participants, 29:15 29 minutes, 15 seconds we request you to please limit your questions to two per participant. If you have a follow-up question, you may rejoin the queue. 29:23 29 minutes, 23 seconds The next question is from the line of Praya. Pranavaya from PL Capital. Please go ahead. 29:33 29 minutes, 33 seconds Yeah. Good evening, sir. This is uh just wanted to know you just uh said a capix of around 300 CR that will be mainly for 29:42 29 minutes, 42 seconds wire ropes and how much capacity will it add some present? 29:49 29 minutes, 49 seconds So we are planning to increase our uh road capacity by close to 6,000 tons uh 29:56 29 minutes, 56 seconds with this uh and and and almost 70% 75% of the capex would be going to expand this capacity and the balance 30 would 30:05 30 minutes, 5 seconds be augumenting capacity of specialized wires as well as uh the uh further 30:12 30 minutes, 12 seconds increasing the capacity by u mar by by some addition of few equipments and 30:18 30 minutes, 18 seconds testing. facilities for plasticated LRPC and plasticated LRPC you said little we 30:26 30 minutes, 26 seconds can say around 6 7,000 tons peranom am I right on this number current capacity our our current 30:33 30 minutes, 33 seconds capacity is around 6,000 tons so we should be able to uh but but we would also like to once all the approvals are 30:41 30 minutes, 41 seconds in place we are able to also uh get to the export market for these products so we will be able to once we are close to 30:51 30 minutes, 51 seconds utilizing this capacity we would take steps to further augment our capacity to 8 to 9,000 tons but all those will come 30:58 30 minutes, 58 seconds in steps and those costs are included in in the the capex which we intend to do over the next two years 31:07 31 minutes, 7 seconds and can you also give some color on how is the demand uh in India uh for next 31:13 31 minutes, 13 seconds let's say one or two years apart from plus whatever which is going on globally uh in the rest of the markets like 31:21 31 minutes, 21 seconds Europe and US. Do you expect any uh destruction of demand in next year? 31:32 31 minutes, 32 seconds No. Uh demand as we mentioned that our demand from Europe and America is pretty strong particularly segments of oil 31:40 31 minutes, 40 seconds offshore, crane, wind energy. So these areas we are seeing because most of these countries are wanting to have 31:46 31 minutes, 46 seconds their own energy security. So we are seeing a fairly strong demand and order book for for and there are lot of 31:54 31 minutes, 54 seconds projects uh in the pipeline and inquiries in pipeline and we are having some good orders for the H1. We don't 32:02 32 minutes, 2 seconds see any uh any any uh uh push back in demand from these markets. As far as 32:09 32 minutes, 9 seconds India is concerned, India we are growing at six, seven, eight% and we in the whole and we have a fairly large market 32:17 32 minutes, 17 seconds share in India and we would continue to grow based on how the country grows. We should be able to hopefully maintain and 32:25 32 minutes, 25 seconds slightly increase our market share particularly the elevator the ports. 32:29 32 minutes, 29 seconds These are markets in India which are growing at a much faster uh uh pace and 32:35 32 minutes, 35 seconds we are building up capacities to ensure that we are ahead of the curve to take care of these uh to take care of these. 32:47 32 minutes, 47 seconds Okay. Thanks a lot sir. 32:51 32 minutes, 51 seconds Thank you. The next question is from the line of Shadhakaparia from Smiths. Please go ahead. 32:58 32 minutes, 58 seconds Hello, I'm audible. Hello. Yes, you are. Please go ahead. 33:05 33 minutes, 5 seconds Yeah, congratulations on the good set of numbers. Uh so if you could help me with the current capacity utilization for the different plants. 33:18 33 minutes, 18 seconds Um uh in terms of uh you know capacity the total rope capacity now is about 33:24 33 minutes, 24 seconds 140,000 u tons out of which we are say at about 75% uh u utilization and uh uh 33:33 33 minutes, 33 seconds in terms of wires we are at about an 80,000 tons capacity also around you know 75 uh to 78% utilization and LRPC 33:44 33 minutes, 44 seconds um if you break it down uh the normal LRPC is about 60,000 uh odd tons and the 33:50 33 minutes, 50 seconds plasticated is about 6,000 tons and even there we're at about 70% or so utilization. 33:58 33 minutes, 58 seconds Okay. Sure. Thank you so much. Also if you could uh help or throw some light on the one Usha Martin initiative so the 34:06 34 minutes, 6 seconds benefits which we have realized till now and the future expectations. 34:14 34 minutes, 14 seconds Um so in terms of one USA Martin uh you know uh like we uh we mentioned uh Abid mentioned in the opening remarks that 34:21 34 minutes, 21 seconds the benefits of that uh we are already seeing in terms of uh you know one on the cost side uh where uh fixed costs 34:29 34 minutes, 29 seconds fixed employee costs as well as the admin costs have come down uh substantially u this year um you know 34:38 34 minutes, 38 seconds that is that is on the cost side and we feel that you know now we have a much uh you know stronger overall cost 34:45 34 minutes, 45 seconds discipline in the organization as well and that is very well you know embedded both in India as well as our subsidiaries 34:52 34 minutes, 52 seconds then on the revenue side as well so you know uh as one when as we're working as one Martin uh uh we we have uh uh you 35:01 35 minutes, 1 second know better working uh uh you know with between India and the subsidiaries across all the high value segments so you know global references uh from one 35:10 35 minutes, 10 seconds location is helping us uh you know build market in the others uh like we mentioned. So as we're working more closely sharing references, sharing 35:17 35 minutes, 17 seconds performance data uh with I'm sorry to interrupt you ma'am we are unable to hear you. 35:32 35 minutes, 32 seconds Hello. Uh are you able to hear me? 35:43 35 minutes, 43 seconds Ladies and gentlemen, please stay connected while we check the line for management. 35:48 35 minutes, 48 seconds [music] 35:54 35 minutes, 54 seconds [music] 36:02 36 minutes, 2 seconds [music] 36:09 36 minutes, 9 seconds [music] 36:14 36 minutes, 14 seconds [music] 36:21 36 minutes, 21 seconds [music] 36:21 36 minutes, 21 seconds know baby. [music] 36:38 36 minutes, 38 seconds [music] 36:44 36 minutes, 44 seconds [music] 36:45 36 minutes, 45 seconds That was just 36:55 36 minutes, 55 seconds [music] 37:00 37 minutes [music] 37:06 37 minutes, 6 seconds [music] 37:12 37 minutes, 12 seconds Hey, [music] hey, 37:21 37 minutes, 21 seconds hey. [music] 37:30 37 minutes, 30 seconds [music] 37:36 37 minutes, 36 seconds [music] 37:42 37 minutes, 42 seconds [music] 37:48 37 minutes, 48 seconds [music] 37:53 37 minutes, 53 seconds [music] 37:57 37 minutes, 57 seconds Bend me. 38:02 38 minutes, 2 seconds [music] 38:08 38 minutes, 8 seconds [music] 38:15 38 minutes, 15 seconds [music] 38:23 38 minutes, 23 seconds [music] 38:25 38 minutes, 25 seconds Ladies and gentlemen, thank you for patiently holding. We have management line reconnected. over to you. 38:33 38 minutes, 33 seconds Apologies, apologies about that. Um, so uh you know just back to your question around the the one USA Martin like we 38:41 38 minutes, 41 seconds mentioned uh I don't know at what point we got cut but you know on the cost side uh we have been able to get significant 38:50 38 minutes, 50 seconds about 3% admin cost about 7% all in 38:58 38 minutes, 58 seconds months we've been Sorry that we we are losing your 39:06 39 minutes, 6 seconds connection. Uh your voice is breaking in between. Can you hear me now? 39:14 39 minutes, 14 seconds Yes, please go ahead. Is it better now? 39:17 39 minutes, 17 seconds Um yes. So um in all with measures we've taken at as Bonusa Martin we've seen uh 39:25 39 minutes, 25 seconds uh over the last you know 18 months about uh 65 to 70 crores of cost savings that we've been able to 39:34 39 minutes, 34 seconds Sure. If you could help with any future number or future guidance also that would be great 39:43 39 minutes, 43 seconds with regards to the vanosha m. Hello. 39:55 39 minutes, 55 seconds Please stay connected. Please stay connected. We are reconnecting them. 39:59 39 minutes, 59 seconds [music] 40:04 40 minutes, 4 seconds [music] 40:08 40 minutes, 8 seconds about 40:11 40 minutes, 11 seconds [music] 40:16 40 minutes, 16 seconds [music] 40:26 40 minutes, 26 seconds be [music] 40:32 40 minutes, 32 seconds [music] 40:37 40 minutes, 37 seconds [music] 40:44 40 minutes, 44 seconds Ladies and gentlemen, thank you for patiently holding management license connected. Over to you, ma'am. 40:52 40 minutes, 52 seconds Yes, apologies. Apologies about that. 40:54 40 minutes, 54 seconds Um, yeah, I think we answered the question on Manusha Martin. So um if there's any further questions we'll uh we'll be happy to take that. 41:04 41 minutes, 4 seconds Also if you could just help with any future guidance or future plans which you have with regards to this only any quantifiable numbers or anything if you 41:13 41 minutes, 13 seconds could help in terms of only one mat. 41:20 41 minutes, 20 seconds This has become a discipline and DNA and we we you know and we will continue to keep on uh working getting more back 41:28 41 minutes, 28 seconds office uh services to India further optimizing our cost. So this will become part and uh you know this will be a continuous way to look at efficiency. 41:38 41 minutes, 38 seconds Yeah. 41:40 41 minutes, 40 seconds Okay. Okay. Sure. Thank you so much and all the best for future. 41:44 41 minutes, 44 seconds Thank you. The next question is from the line of Kartik Kumar Pande from 361 Capital. Please go ahead. 41:52 41 minutes, 52 seconds Hello. Am I audible? 41:55 41 minutes, 55 seconds Please go ahead with your question. Yes, you audible. 41:58 41 minutes, 58 seconds Yeah. Hi sir. Thanks for the opportunity and congratulation on a very good set of numbers. Sir, so my first question would 42:05 42 minutes, 5 seconds be on uh the LPG cost. So like can you quantify like what was the quantum for you know as a percentage of sale and uh 42:14 42 minutes, 14 seconds is what is the inflation on that and uh are there any production disruptions that can happen if uh the crisis 42:22 42 minutes, 22 seconds persists for some time even after a uh we use about uh 250 tons of LPG 42:33 42 minutes, 33 seconds between uh close to 250 to 300 tons depending on the uh on on LPG. So few 42:41 42 minutes, 41 seconds steps we have taken a of course the cost has gone up uh uh from the earlier level 42:47 42 minutes, 47 seconds of 60,000 rupees per ton uh to to around 120 to 130,000 rupees per ton. Uh we 42:56 42 minutes, 56 seconds have been able to uh take few steps. One is uh we have a line very close to our 43:04 43 minutes, 4 seconds plant which has just been completed and we are shifting part of our requirement to natural gas. The line is very close 43:11 43 minutes, 11 seconds to our plant and 25% of our requirement we will shift to natural uh the natural gas which is available uh in this part 43:20 43 minutes, 20 seconds of the country and uh uh the cost whatever the increase has been there is close to about 2 and a half to three 43:28 43 minutes, 28 seconds crores a month because of the increased price of uh uh of uh uh LPG and propane 43:35 43 minutes, 35 seconds we have been able to pass on the cost to the as a part of our product pricing to the customers and I'm and we have taken 43:42 43 minutes, 42 seconds advanced steps as we mentioned in our opening remarks that we created enough buffer in our system and the supply 43:49 43 minutes, 49 seconds chain management to book at the right time even at these cost to ensure that there is no disruption and we don't 43:56 43 minutes, 56 seconds expect any disruption on account of uh gas shortage. 44:05 44 minutes, 5 seconds Okay sir. Uh so this 50 t figure Yeah. Uh so I'm audible. Yes. Yes, you're audible. 44:14 44 minutes, 14 seconds Yes sir. So this 250 t this is uh like can you just help me understand like this is 250 ton of NTG on like per ton 44:23 44 minutes, 23 seconds like what is the quant how should I model this like if I want to understand no we our to you see you see there is 44:31 44 minutes, 31 seconds nothing called per ton because like LRPC doesn't require uh or or certain wires don't require so our total consumption 44:40 44 minutes, 40 seconds is between 200 250 to 300 tons a that is across all our furnaces. Uh so 44:48 44 minutes, 48 seconds we cannot attribute it to any single product. So it is a total requirement and if I look at it in our total cost is 44:56 44 minutes, 56 seconds about four four and a half to 5 crores even at these inflated uh prices today. 45:02 45 minutes, 2 seconds So it's not it cannot be attributed to per ton of rope or per ton of particular wire. It is used in a variety of 45:11 45 minutes, 11 seconds furnaces. So we look at it as our total cost uh per of 250 to 300 tons every month. 45:23 45 minutes, 23 seconds Uh okay sir. Uh so I have few more questions. Uh so sir uh like you just mentioned uh like previously you were 45:31 45 minutes, 31 seconds looking at you know 19 18 to 19% of uh stable operating margins. Now you're saying that uh we can in up to 20% uh due to the uh due to a better product. 45:44 45 minutes, 44 seconds So uh if I'm not wrong if we push uh you know uh the product that we are looking 45:51 45 minutes, 51 seconds at so isn't that going to affect our volume in general for the wrote business. So what I want to understand is that uh what's the volume growth that 46:00 46 minutes you're looking at doing? Is it the same 10 to 12% that you mentioned last quarter or is there any change in the reality? 46:09 46 minutes, 9 seconds No, we are looking at overall between our product mix a growth of between 10 to 12% that would continue 46:16 46 minutes, 16 seconds as well as our endeavor to move more and more towards uh uh specialized products 46:23 46 minutes, 23 seconds uh would also continue. So it's going to be a mix of volume growth as well as uh 46:30 46 minutes, 30 seconds continue to focus to build the uh the uh higher value added ropes. So it would it 46:38 46 minutes, 38 seconds both are independent and to some extent interlin. So both the both the targets uh are being simultaneously 46:47 46 minutes, 47 seconds focused by us and we would continue and we expect to um barring you know some major geopolitical issues if they happen 46:56 46 minutes, 56 seconds we should be able to achieve the 10 to 12% volume growth and constantly push the value value proposition also. 47:07 47 minutes, 7 seconds So okay sir but like uh if I'm not wrong you had mentioned about some output drop if you uh venture into some kind of you 47:16 47 minutes, 16 seconds know high uh quality ropes like elevator and crane and mining obstacles. So that's why I was just trying to break 47:22 47 minutes, 22 seconds that uh uh thesis that you see you see you're right when it comes to certain uh 47:29 47 minutes, 29 seconds compacted and high quality ropes or some ropes which are running on the machine at lower diameter. So uh it's a because 47:37 47 minutes, 37 seconds the number of SQS SKUs are pretty large in a plant like ours or in the rope industry. So yes of course but the kind 47:46 47 minutes, 46 seconds of capacities which we are built in our plant now and the new capex which has been implemented we have the flexibility 47:54 47 minutes, 54 seconds that within the volume to push higher value added products as well as scale up our volume. So so so it is not that uh 48:03 48 minutes, 3 seconds uh uh it's not a very simple calculation but based on whatever infrastructure we have created in our facility we feel 48:12 48 minutes, 12 seconds confident that we will be able to manage both the value added sector also whereas at the same time pushing our volume so both both will happen. 48:23 48 minutes, 23 seconds Okay sir. So I have this uh team of questions but if I just please come in. 48:28 48 minutes, 28 seconds Uh so sir what are your uh international market share as of FI26 specifically in 48:34 48 minutes, 34 seconds US Europe and uh if in let's just say Middle East for as compared to FI25. 48:45 48 minutes, 45 seconds um you know overall like we said in the US market it's uh it's up by 5% um sub 48:52 48 minutes, 52 seconds 5% share in in Europe uh it would be higher with you know our service centers as well as um our factory present about 49:00 49 minutes 10 to uh 12% um and in the Middle East again Middle East is you know combination there's a lot of you know 49:08 49 minutes, 8 seconds general purpose ropes as well and unorganized uh market but it would uh uh you know we are the only manufacturer of 49:15 49 minutes, 15 seconds Y ropes in the GCC region. So that does give us a a benefit and uh we probably have a larger share um over there. 49:22 49 minutes, 22 seconds Sorry to interrupt. May we request Mr. 49:24 49 minutes, 24 seconds Panda to please rejoin the queue. We have other participants waiting for the turn. Thank you. The next question is from the line of Kamhar from Lotus Asset Managers. Please go ahead. 49:36 49 minutes, 36 seconds Yeah, thanks for the opportunity and very strong performance on the margins and as well as a uh a very good 49:44 49 minutes, 44 seconds articulation of the outlook and the prospect ahead. Uh just one question like say going forward like say we can 49:53 49 minutes, 53 seconds assume 6 to 7% volume growth on a on a uh like say tagger basics for next two to three years 50:02 50 minutes, 2 seconds or like say can we march ahead of that because honestly like say we have performed very well on the execution 50:11 50 minutes, 11 seconds side but like going forward can we assume like say it the growth will remain at 57 7% given the fact that 50:20 50 minutes, 20 seconds these are the industries where our product grows there also the growth would remain at the singular levels 50:28 50 minutes, 28 seconds it's a very good question 6 to 7% growth is the normal growth what is uh for for 50:36 50 minutes, 36 seconds this industry globally 6 to 7% but as what Sha mentioned that our share particularly when you talk about Europe 50:45 50 minutes, 45 seconds or talk about US our base or our market share in those markets are very low and once we have built our capacity as well 50:54 50 minutes, 54 seconds as we have based on the various capex which we have already done and we have been able to make inroads which has 51:02 51 minutes, 2 seconds taken time for us to get into new customer approvals new OEM approvals even some of the new uh end user 51:11 51 minutes, 11 seconds customers who have we have been able to develop over the last three or four years we have been able to build that 51:17 51 minutes, 17 seconds kind of uh uh capability now and also the newer markets. We hope that both 51:25 51 minutes, 25 seconds with a lower base and these product approvals and the markets which we have developed and the capability from the 51:32 51 minutes, 32 seconds plant we should be able to get to um you know overall of course it means wire rope as well as some specialized wires 51:41 51 minutes, 41 seconds and plasticated LRTC and in the entire basket we hope to be able to get to that 10 to 12% volume growth uh in the next 51:50 51 minutes, 50 seconds uh uh you know for the next two to three Yes, great. And secondly, like uh as we uh 52:00 52 minutes bump up our volumes. So our margins would remain at these levels or like uh because we want to capture higher 52:08 52 minutes, 8 seconds volumes. So we have to take some hit on the margins or the product mix will take care of that uh higher volumes. How the things would be on the margin problem? 52:21 52 minutes, 21 seconds Yeah, you know, as you rightly said, u as our product mix is also getting better, we should be able to sustain at 52:28 52 minutes, 28 seconds the at the 20% uh margin level and our goal would be to continue to drive better mix and and and improve uh and improve the margins going forward. 52:40 52 minutes, 40 seconds And once again sir, a lot of appreciation the way we have transformed our company uh since that uh uh exit of 52:48 52 minutes, 48 seconds that business. So I wish you best of luck. 52:55 52 minutes, 55 seconds Thank you so much. 52:58 52 minutes, 58 seconds Thank you. The next question is from the line of Diia from Sapphire Capital. Please go ahead. 53:06 53 minutes, 6 seconds Thank you for taking my question. Can you share your current order book and also provide a brief of the order book? 53:16 53 minutes, 16 seconds You see the for these specialized projects as I mentioned we have a fairly healthy order book. We generally don't 53:23 53 minutes, 23 seconds talk about any specific volumes uh because uh but but we we do have a fairly for these higher value added 53:32 53 minutes, 32 seconds products uh a visibility uh for for our uh value added products for the for for 53:39 53 minutes, 39 seconds H1 uh 85% of our business come through uh uh through the uh replacement market 53:49 53 minutes, 49 seconds and we have a very strong dealer network in India as as well as we have our own distribution arms and and subsidiaries. 53:56 53 minutes, 56 seconds So we the kind of uh order book and the feedback what we based on all the 54:02 54 minutes, 2 seconds inquiries um I think we we we we have a fairly strong uh order book for the 54:10 54 minutes, 10 seconds visibility for the rope for the for the next 6 months at least. 54:17 54 minutes, 17 seconds Can you please quantify it? 54:20 54 minutes, 20 seconds No, sorry. We we generally don't quantify uh our our uh these uh 54:26 54 minutes, 26 seconds quantities uh u uh you know uh we we generally don't quantify these numbers. 54:34 54 minutes, 34 seconds Okay. No problem. Thank you and all the best. Thank you. Thank you. 54:41 54 minutes, 41 seconds The next question is from the line of Pawan from Vanels. Please go ahead. Hello. Am I audible? 54:50 54 minutes, 50 seconds Yes, you are. Please go ahead. Yes. Yes, please. Hey. Hi. 54:54 54 minutes, 54 seconds Congratulations on the result. Uh I just wanted to understand the uh the margin mix. Basically, we've been talking about 55:02 55 minutes, 2 seconds increasing the value added products. But if you see the value added products from 25 to 26, it's pretty much the same at 55:09 55 minutes, 9 seconds 53%. In the oil offshore crane and other value added product lines that we highlighted. uh and still we've got a 55:16 55 minutes, 16 seconds margin improvement and the gross profit per kg is largely the same in the last two years. So the margin improvement 55:24 55 minutes, 24 seconds that we've seen is only due to USA Martin. I mean where can we see the contribution of value added products coming in the margins? 55:33 55 minutes, 33 seconds No, you see even in the quarter four we have seen the the impact of the uh better product mix and uh our wire row 55:42 55 minutes, 42 seconds prices in the international market. Uh because of a better product mix we have been able you can see it is o over 300,000 rupees per ton for the first 55:51 55 minutes, 51 seconds time. This is as a result of uh a fairly healthy product mix and uh the gross 55:58 55 minutes, 58 seconds margins have also improved uh uh over the last uh uh couple of years. So so 56:05 56 minutes, 5 seconds and and also an impact of cost efficiency and uh as a part of one Usha Martin that has also helped us to 56:12 56 minutes, 12 seconds improve our cost structure. So it's a combination of the one USAHA market where we have tried to optimize our costs uh between all our various 56:22 56 minutes, 22 seconds subsidies and the parent company and we have been able to u also ensure that we have gradually moved to the value added 56:30 56 minutes, 30 seconds products uh and and and as our export market also our revenue which used to be 56:36 56 minutes, 36 seconds around 55% from our uh uh uh from the international business that has also 56:43 56 minutes, 43 seconds gone up to 57% %. So combination of all this has helped us to improve the margins to the levels what we are 56:51 56 minutes, 51 seconds achieving now and hopefully we should be able to be of course it depends also on the product mix on a month-to-month and 56:58 56 minutes, 58 seconds a quarterto quarter basis but as we mentioned Shria mentioned that over 20 20% is the new uh benchmark we would 57:07 57 minutes, 7 seconds like to hold for ourselves and try to see how we can continue to improve upon that and what you mentioned And you know the 57:15 57 minutes, 15 seconds the 53% even if you look at within the value added products it's not that all of them would be at the same level. 57:21 57 minutes, 21 seconds Fishing for example the share of fishing has decreased over a period of time which has which is you know a specialized product but it is lower 57:30 57 minutes, 30 seconds value than say crane or mining or elevator which has increased over time. 57:34 57 minutes, 34 seconds Even within elevators uh you know there are some which are more higher value uh you know realization uh products there 57:42 57 minutes, 42 seconds are some lower. So you know looking at this 53% in isolation uh you know probably 57:49 57 minutes, 49 seconds understood understood ma'am thank you and my second question would be on just more on the business understanding 57:57 57 minutes, 57 seconds we have lost the line of management 58:04 58 minutes, 4 seconds [music] 58:13 58 minutes, 13 seconds [music] 58:25 58 minutes, 25 seconds [music] 58:31 58 minutes, 31 seconds [music] 58:36 58 minutes, 36 seconds [music] 58:43 58 minutes, 43 seconds [music] 58:50 58 minutes, 50 seconds down. [music] 58:55 58 minutes, 55 seconds [music] 59:02 59 minutes, 2 seconds [music] 59:07 59 minutes, 7 seconds [music] 59:07 59 minutes, 7 seconds One day around 59:15 59 minutes, 15 seconds [music] 59:18 59 minutes, 18 seconds the world. 59:25 59 minutes, 25 seconds [music] 59:32 59 minutes, 32 seconds [music] 59:38 59 minutes, 38 seconds Ladies and gentlemen, thank you for patiently holding. Over to you, sir. 59:43 59 minutes, 43 seconds Yes. So, so you know our focus is continuously to keep on improving the within the value added into better 59:50 59 minutes, 50 seconds product mix and our endeavor would be to uh to continue to uh improve our margins 59:58 59 minutes, 58 seconds uh as well as at the same time volumes are equally important. So it's going to be a balance between volume and value and hopefully we should be able to 1:00:06 1 hour, 6 seconds continue this journey as we have done in the last two to three years. 1:00:11 1 hour, 11 seconds Understood. And sir just one more clarification on the margins since Q4 is now the benchmark of say around 22% margins and going forward we are seeing 1:00:20 1 hour, 20 seconds healthy growth in volumes. We are anticipating healthy growth in volumes. 1:00:24 1 hour, 24 seconds We are anticipating easy passroughs of things. We have one Martin which should continuously drive improvement. Why are we not expecting a growth in margins? 1:00:33 1 hour, 33 seconds Why are we expecting a retreat from 22% to 20%. Like what is the link that I'm missing? Now we are not saying that we 1:00:40 1 hour, 40 seconds are we are expecting to reduce it from 20 to 20 from 22 to 20. Say for example 1:00:48 1 hour, 48 seconds our between last year and this year and even quarter four of last year to quarter four of this year our uh uh LRPC 1:00:58 1 hour, 58 seconds sale is down by 20%. So if the LRPC which is the lowest margin part of our business if the volume of that has come 1:01:06 1 hour, 1 minute, 6 seconds down by 20%. That also improves the average of the uh uh of the uh uh AITA 1:01:16 1 hour, 1 minute, 16 seconds per percentage per or AIA per ton. So our endeavor would always be like we used to say earlier that we would like to see that we are between 18 and 19%. 1:01:27 1 hour, 1 minute, 27 seconds We would like to see that of course we would be happy to see if it continues at 20%. But it is not a straight line 1:01:34 1 hour, 1 minute, 34 seconds because it also depends the mix between wires between LRPC and within rope also how much is of those big projects with 1:01:43 1 hour, 1 minute, 43 seconds value added or of the different categories of rope. So our endeavor would not be to to 1:01:53 1 hour, 1 minute, 53 seconds uh to to bring it down. Our you know as we we would rather like to see it keep growing but our minimum benchmark would 1:02:02 1 hour, 2 minutes, 2 seconds be that we would like to see that that push from 18 to 19% at least to a 1:02:09 1 hour, 2 minutes, 9 seconds minimum of 20%. And we would also like that we have a large capacity in the plant. we have put a large capex that 1:02:17 1 hour, 2 minutes, 17 seconds our absolute AITA numbers also keep improving. It's just not the AITA per ton with the uh uh uh with the lower 1:02:25 1 hour, 2 minutes, 25 seconds volume. We would like to also see that with all the fixed assets and the plant which we have created the absolute 1:02:33 1 hour, 2 minutes, 33 seconds numbers also keep on improving and that is something which we would be u also focusing on. 1:02:41 1 hour, 2 minutes, 41 seconds Understood. Thanks a lot. And if I may just squeeze on one more question. Uh I was just looking on the realization of 1:02:49 1 hour, 2 minutes, 49 seconds each of these subsegments wire rope wire and strand and LRTC and correlating it to the steel prices reported by the 1:02:56 1 hour, 2 minutes, 56 seconds company. Uh the value ad really seems to have only been in the wire rope segment. 1:03:01 1 hour, 3 minutes, 1 second The wire strand is almost 1.5x of the steel prices. Uh realization being that. 1:03:07 1 hour, 3 minutes, 7 seconds So is is it is it the right understanding to think that most of the value going on is also expected in the wire loop segment. 1:03:15 1 hour, 3 minutes, 15 seconds uh you are right in the normal wire in LRPC uh it is the uh you know we are able to pass on the increase of steel 1:03:24 1 hour, 3 minutes, 24 seconds and maintain that uh ratio what you mentioned but within the LRPC we are looking at developing more and more of 1:03:31 1 hour, 3 minutes, 31 seconds the plasticated LRPC where the delta would be much higher and different as well as on the wire side the zinc 1:03:39 1 hour, 3 minutes, 39 seconds aluminium wires the galstar those products are also at a higher value but overall All most of the value addition comes from the uh from the uh rope side. 1:03:52 1 hour, 3 minutes, 52 seconds Understood. So that's all from my side. Thanks a lot and distr. Thank you so much. 1:04:00 1 hour, 4 minutes Thank you. The next question is from the line of Aman KRA from AK securities. Please go ahead. 1:04:08 1 hour, 4 minutes, 8 seconds Sir, one question relating to Thailand. 1:04:11 1 hour, 4 minutes, 11 seconds So what is the update of that plant and what are the products should we make there uh after the completion of modernization and expansion. 1:04:20 1 hour, 4 minutes, 20 seconds The Thailand plant uh is is uh we are in the process you know as we mentioned the Thailand plant is a uh fully integrated 1:04:30 1 hour, 4 minutes, 30 seconds uh plant from uh starting from wire rod unlike Dubai and the UK where we start from wire and strands. So we have a 1:04:37 1 hour, 4 minutes, 37 seconds similar uh plant to like in our plant in Raji and Husharpu. So we are uh in the process of modernizing that plant and 1:04:46 1 hour, 4 minutes, 46 seconds also have increased capacity for some very specialized uh cords and uh for specialized elevator ropes. So that 1:04:55 1 hour, 4 minutes, 55 seconds would be our area of focus as well as we would also focus in getting more and more into the value added products like 1:05:02 1 hour, 5 minutes, 2 seconds fine cords for uh gondola ropes and for um elevators and for uh uh port crane 1:05:10 1 hour, 5 minutes, 10 seconds ropes. So this process has started. I would say next 18 months we will see a significant improvement in the in the operations of our talent plant. 1:05:21 1 hour, 5 minutes, 21 seconds Okay sir. Thank you. Thanks a lot. Thank you. Thank you. 1:05:28 1 hour, 5 minutes, 28 seconds The next question is from the line of Kartika Kumar Pande from 361 Capital. Please go ahead. 1:05:35 1 hour, 5 minutes, 35 seconds Hello. Am I audible? Yes. Yes, you are. 1:05:40 1 hour, 5 minutes, 40 seconds Yeah. Uh thank you for the opportunity again sir. uh I just wanted to understand the what's the current run date of you know uh our sling segment 1:05:49 1 hour, 5 minutes, 49 seconds and uh plastic lb and uh when you say 10 to 12% of volume uh is it including the 1:05:57 1 hour, 5 minutes, 57 seconds first mala project or we are keeping it aside and you know some positive surprise can come from that side volume 1:06:05 1 hour, 6 minutes, 5 seconds you see when we talk about 10 to 12% is it is across all segments you know whether it is increase in plasticated 1:06:13 1 hour, 6 minutes, 13 seconds LRPC or in increase in our Galstar or uh some projects on the Parvat Mala. Parvat 1:06:21 1 hour, 6 minutes, 21 seconds Mala projects there are lot of uh activities going on but I think the actual the real rope demand of this will 1:06:28 1 hour, 6 minutes, 28 seconds come probably two to three years when these this is the last stage of the projects getting implemented. So, so we 1:06:36 1 hour, 6 minutes, 36 seconds are when we talk about 10 to 12% it it encompasses and it covers all the different segments of our products uh 1:06:45 1 hour, 6 minutes, 45 seconds and and overall we look at these volume growth. 1:06:51 1 hour, 6 minutes, 51 seconds So the point being is that I want to understand whether we will so I just wanted to understand the quantum of 1:06:58 1 hour, 6 minutes, 58 seconds extra demand that we can see because uh addressable market I know uh you had mentioned that few quarters back but in 1:07:06 1 hour, 7 minutes, 6 seconds terms of volume we'll we be making a significant effect uh to address that because you mentioned that we are I 1:07:13 1 hour, 7 minutes, 13 seconds think the only player uh with the certification and uh that is required for that. So my question 1:07:20 1 hour, 7 minutes, 20 seconds as far as as far as plasticated LRTC we are doing currently we do around 2 and a half thousand tons a year that will uh 1:07:28 1 hour, 7 minutes, 28 seconds based with the various approvals which we are hoping to get soon we should be able to double our quantity of plasticated LRPC from 2 and a half to 1:07:37 1 hour, 7 minutes, 37 seconds four 4 and a half thousand tons we should be able to go the capacity is there we need to ensure that those orders and those are project based 1:07:46 1 hour, 7 minutes, 46 seconds orders but assuming those happen in the coming weeks we should be able to push the volumes to almost double from the 1:07:53 1 hour, 7 minutes, 53 seconds current level of 2 and a half thousand tons and we have the capacity and capability created [clears throat] for that. Similarly on the Parvat Mala I 1:08:01 1 hour, 8 minutes, 1 second told you that we have the capacity we have the capability but the execution of those orders when those will be 1:08:09 1 hour, 8 minutes, 9 seconds completed because those are all projects which take six to seven years before we see these projects uh start getting 1:08:16 1 hour, 8 minutes, 16 seconds commissioned and the wire rope is the last part of the project. So those will happen but it will take maybe few years 1:08:25 1 hour, 8 minutes, 25 seconds and also there are some delays what we talk to the various customers in terms of their approvals in terms of this. So 1:08:32 1 hour, 8 minutes, 32 seconds definitely our capability is there when these inquiries get converted and their supply comes those will all add on to the volume uh of business. 1:08:43 1 hour, 8 minutes, 43 seconds Okay if I could just we can just another question if it's okay. Yes, please go ahead. 1:08:51 1 hour, 8 minutes, 51 seconds Yes sir. So you mentioned 12% of market share in Europe. So what I understand is that a large chunk of European market is 1:08:58 1 hour, 8 minutes, 58 seconds for general purpose. So in the market that you compete like what is the market share in that sector like 1:09:06 1 hour, 9 minutes, 6 seconds in the elevator mining there is no every market whether it is Europe or US there is a general purpose 1:09:15 1 hour, 9 minutes, 15 seconds rope market. There is a market for fishing ropes, for ports, for elevators, for oil offshore, for these uh bigger 1:09:24 1 hour, 9 minutes, 24 seconds projects what we do. Uh our our presence as far as our company is concerned, we are more and more on the higher end of 1:09:32 1 hour, 9 minutes, 32 seconds the products where we compete with companies like Brighten, Tfelberger, Wire Co. and those are the markets which we want to expand and grow on the GPO. 1:09:43 1 hour, 9 minutes, 43 seconds we are present there and those volumes are also there but mostly we try to sell those through our own uh rigging shops 1:09:52 1 hour, 9 minutes, 52 seconds which are using these ropes to finish this. So our our increase in market share is more coming into those uh u uh 1:10:02 1 hour, 10 minutes, 2 seconds more premium sectors where we have worked over the last two to three years to build up capability, build up markets, get OEM approvals as well as 1:10:11 1 hour, 10 minutes, 11 seconds new customers. So that is the area we want to grow and there is a we see a fairly strong demand and and and we 1:10:19 1 hour, 10 minutes, 19 seconds expect that growth to to be seen in the coming few quarters. 1:10:26 1 hour, 10 minutes, 26 seconds Okay. 1:10:32 1 hour, 10 minutes, 32 seconds Thank you ladies and gentlemen. That was the last question. I now hand the conference over to management for closing comments. 1:10:41 1 hour, 10 minutes, 41 seconds Uh first of all my apologies for the for the um disruption and inconvenience caused to all of you. Uh we'll make sure 1:10:50 1 hour, 10 minutes, 50 seconds that it doesn't happen in the future. Uh I would like to thank everyone for attending this call and showing interest 1:10:57 1 hour, 10 minutes, 57 seconds in USA Martin Limited. I hope we have been able to answer all your questions. 1:11:03 1 hour, 11 minutes, 3 seconds The company is dedicated to creating value for all its stakeholders in a sustainable manner. Should you need any further clarification 1:11:12 1 hour, 11 minutes, 12 seconds or would you like to know more about the company, please free feel free to react uh to reach out to us or to CDR India. 1:11:21 1 hour, 11 minutes, 21 seconds Thank you once again for taking the time to join us on this call and see you all in the [clears throat] next quarter. Thank you so much. 1:11:30 1 hour, 11 minutes, 30 seconds Thank you ladies and gentlemen on behalf of Usha Martin Limited that concludes this conference. Thank you for joining us and you may now disconnect your lines.