Vardhman Special Steels Limited — Q4 FY26

Vardhman Special Steels Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=D8xJvT5BZgE Published: 2 weeks ago

0:01 1 second Ladies and gentlemen, good day and welcome to Q4 and FI26 conference call hosted by Vermont Special Steels 0:10 10 seconds Limited. This conference call may contain forward-looking statement about the company which are based on the beliefs, opinions and expectation of the 0:18 18 seconds company as on date of this call. These statement are not guarantee of future performance and involve risk and uncertainties that are difficult to 0:27 27 seconds predict. As a reminder, all participant line will be in the listen only mode and there will be an opportunity for you to ask question after the presentation 0:35 35 seconds conclude. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please 0:44 44 seconds note that this conference is being recorded. I now hand the conference over to Mr. Sachi Jan, chairman and managing director 0:52 52 seconds special steam limited. Thank you and over to you sir lad and gentlemen uh uh very good 0:59 59 seconds morning to all of you. It's uh my first investor annual investor call after 1:06 1 minute, 6 seconds taking over as chairman of the company also. 1:10 1 minute, 10 seconds So uh it's a and I we we are uh I'm addressing 1:16 1 minute, 16 seconds all of you as we close a record year uh record profits 122 odd crores 1:26 1 minute, 26 seconds u volume has been the highest 225,000 tons which was our budget and uh also we 1:35 1 minute, 35 seconds are poised for better times ahead as in the last year interesting things have 1:42 1 minute, 42 seconds happened. Uh one of course in the last quarter with the Iran Iraq war uh Iran 1:50 1 minute, 50 seconds US wars uh raw material has shot up in prices as well as gas destruction 1:58 1 minute, 58 seconds was uh was a concern. Luckily uh for us there was no disruption of gas though the cost 2:07 2 minutes, 7 seconds of gas has gone up substantially and I must say the government has handled the overall situation pretty well that uh 2:15 2 minutes, 15 seconds whatever disruption in LPG which was there for us and for some other people some other commodities or disruptions were there but they have not caused 2:24 2 minutes, 24 seconds major chaos as far as our our capex uh reheating 2:31 2 minutes, 31 seconds furnace was commissioned uh in March. It will improve our rolling capacity to 270,000 tons of finished 2:40 2 minutes, 40 seconds product. I hope as we close to 270,000 tons, we might find ways to tweak it further to ease it a bit further. Uh new 2:48 2 minutes, 48 seconds entity line uh is in progress. New peeling line is in progress 2:55 2 minutes, 55 seconds and uh we are trying to see if we can increase our overall melting production beyond three lakh tons to maybe three 3:04 3 minutes, 4 seconds lakh 60,000 tons. So our team has come out with a plan to do that. So we will soon be applying for environmental 3:11 3 minutes, 11 seconds approval which uh is not sure that we'll get but if we get that environmental approval we'll increase the production 3:19 3 minutes, 19 seconds in this plant. The solar plant was commissioned also in this quarter. Uh we will be getting 9 cr units of power per 3:28 3 minutes, 28 seconds year and a new section of 210 by 210 is also been introduced. Now what does this new 3:35 3 minutes, 35 seconds section mean? That with this new section our productivity of our concast goes up which was a bottleneck and which is why 3:43 3 minutes, 43 seconds we are more confident of increasing production and second it improves the quality of our product. So our rework 3:52 3 minutes, 52 seconds uh will come down. So first rejection of some of the critical parts especially the bigger dia products will come down 4:00 4 minutes which will improve throughput as well as reduce some cost. 4:05 4 minutes, 5 seconds Uh also we have increased the heat size from 37 tons to 40 tons. These will also help in improving productivity as well 4:14 4 minutes, 14 seconds as reduce costs during the time. uh so overall I think we are on track in the next two years I think we are conf 4:22 4 minutes, 22 seconds getting more and more confident that we'll be raising the uh guidance further so this year our guidance is is now up 4:31 4 minutes, 31 seconds from last year which is 8 to 11,000 rupees a ton if it from 2 years from now I think we are 4:38 4 minutes, 38 seconds confident now that this range can be increased further to 9 to 12 so we are seeing better times ahead ahead and move ahead. 4:49 4 minutes, 49 seconds A couple of other uh uh interesting things. I think our new steel plant planning is going on full swing. We seem 4:57 4 minutes, 57 seconds to be on track that we will start our plant on in July 2029 as of now and our 5:04 5 minutes, 4 seconds forging plant also a lot of equipment has been ordered. So we seem to be in track in starting the commissioning the 5:11 5 minutes, 11 seconds plant in end uh third quarter of uh uh 5:17 5 minutes, 17 seconds uh next year and uh Jan March of 28 we hope to start uh the production from the forging line. 5:29 5 minutes, 29 seconds Uh we will also very soon start planning further expansion of the forging line as 5:35 5 minutes, 35 seconds well as strategically now we are looking at a newer direction with a new steel plant we will have a 5:45 5 minutes, 45 seconds capacity of 5 to 600,000 tons. I think we have announced 500,000 tons but gradually looking after talking to 5:54 5 minutes, 54 seconds manufacturers we are able to see maybe we'll able we'll be able to reach 600,000 tons. So with 600,000 tons there 6:01 6 minutes, 1 second and 300,000 tons here we will have almost 900,000 tons of steel. Now this is the time for us to start diversifying 6:10 6 minutes, 10 seconds our special steels portfolio into nonautomotive steels also. So we have 6:17 6 minutes, 17 seconds taken a strategic view that over the next 10 years we will be uh about 30% 6:25 6 minutes, 25 seconds non-automotive steel 70% will be automotive steel and non-automotive steel has several categories and we will 6:34 6 minutes, 34 seconds do deep dive into them as we go along in this year and next year. So there is railways, there is oil and gas, there is 6:41 6 minutes, 41 seconds bearings, there is windmill shafts, ship shafts and so on. And then there is also a 6:50 6 minutes, 50 seconds newer area which is more sophisticated uh of advanced alloys and advanced materials where we will start looking at 6:59 6 minutes, 59 seconds aerospace defense uh very special steel, nuclear 7:05 7 minutes, 5 seconds uh dyes, dice steel. So those are other areas which go into the more super specialized range. Uh so these are all 7:15 7 minutes, 15 seconds in the next uh 3 to five years you will see uh more planning and more thrust in 7:22 7 minutes, 22 seconds that area. Also we are now gra we going to soon doing internal organization structure. We moving into divisions. 7:31 7 minutes, 31 seconds We'll be having a posting division where some of the senior Japanese people is going to from I will come in here. He 7:40 7 minutes, 40 seconds will be posted here. So uh the president of the forging division would be a Japanese gentleman uh from I will have a 7:49 7 minutes, 49 seconds we are now looking for a president of the automotive steel division and then we we will create we will structure a separate non-automotive steel division. 7:59 7 minutes, 59 seconds So all this in the next three to five years and which will again enable the company to grow further look for further 8:06 8 minutes, 6 seconds alliances and joint venture partners into more specialized areas. So I think uh more and more of my time is now going 8:15 8 minutes, 15 seconds to go into uh developing these strategies, these relationships and uh making the company uh stronger 8:25 8 minutes, 25 seconds and serving what the country needs today. We to just give an example tool and dice steels there's about a thousand 8:33 8 minutes, 33 seconds crores which gets imported into the country every year and as we talk to and the customers are the same most of the dice steel customer all are our forging 8:41 8 minutes, 41 seconds companies who are our customers and each one that we talk to says there's a big headache importing these steels from 8:48 8 minutes, 48 seconds Europe or from Japan or from Korea so there is a big opportunity in those areas also so we have not decided or 8:56 8 minutes, 56 seconds anyone but I just think these are the areas of opportunities opening up for us as this plant is becoming saturated. So 9:04 9 minutes, 4 seconds as a beginning we going to start with in casting in this uh plant. Uh we'll start 9:11 9 minutes, 11 seconds in a small way and then we will be increasing our inject casting. Now with indirect casting is a different method of steel making. Melting is the same. 9:22 9 minutes, 22 seconds It's just a casting. We have continuous casting which really is mass market because of the automotive space. Inet 9:29 9 minutes, 29 seconds casting will be higher alloys and limited volume that we'll be moving into and so the specialized products will 9:38 9 minutes, 38 seconds require the inet much bigger diameter products which will maybe you may just forge it and go it may be sold straight 9:45 9 minutes, 45 seconds to forging companies rather than the whole process of rolling out of that. So those are the kind I so I'm just sharing 9:53 9 minutes, 53 seconds broad outline with you today that we have reached a possibility uh we have reached now a stage where we can think 10:02 10 minutes, 2 seconds of all these newer areas. So we we are very clear we will remain only in the areas of special steams and automotive 10:10 10 minutes, 10 seconds forgings but more and more we want to see our vision now is to see ourselves a supermarket of special schemes. So this 10:19 10 minutes, 19 seconds is a new term that we have started thinking about it in the last uh couple of months and I think today in today's 10:27 10 minutes, 27 seconds annual call is the first time I'm announcing this to our shareholder community that u we will uh try to be a 10:35 10 minutes, 35 seconds supermarket and but we are very clear we will remain only in the areas of special skills and of course once we get into specialized 10:44 10 minutes, 44 seconds alloys for um uh defense and aerospace face then adjacencies come up where you 10:51 10 minutes, 51 seconds can move into gradually in a slow process over the next 5 to 10 years move into uh other alloyers also. So that all 11:01 11 minutes, 1 second will be the job of the next generation of management after me but we will lay the foundation strong company which can 11:09 11 minutes, 9 seconds then grow into separate eight distances with separate U JV partners as we go 11:15 11 minutes, 15 seconds along. Uh and overall uh seeing the confidence in the future uh your board 11:22 11 minutes, 22 seconds decided to recommend a dividend of three and a half rupees a share. Frankly uh I was uh I had gone into the meeting uh 11:32 11 minutes, 32 seconds with the mind of uh Sri Lair but seeing the results and seeing our plans and discussions the board decided no that 11:41 11 minutes, 41 seconds that with these kind of plans and the confidence the entire board has uh in the management and the company then we 11:49 11 minutes, 49 seconds all decided that three and a half rupees a share one more thing last year the important part was I increased their 11:55 11 minutes, 55 seconds shareholding to 24.9 9 which is a statement of tremendous confidence from their side also. They they're very happy 12:02 12 minutes, 2 seconds with the partnership and u they want to see a bigger play in India as we go 12:10 12 minutes, 10 seconds along. Thank you. Uh these this has been my longest opening comments so far. Ula is 12:18 12 minutes, 18 seconds the figures have already are already uploaded. Uh so we can open it to Q&A now. 12:26 12 minutes, 26 seconds Thank you so much sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. 12:37 12 minutes, 37 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants are request to use handsets while asking a question. Ladies 12:46 12 minutes, 46 seconds and gentlemen, we'll wait for a moment while the question assembles. 12:52 12 minutes, 52 seconds Our first question comes from the line of Sakit Kapoor from Kapoor and Company. Please go ahead. 13:02 13 minutes, 2 seconds Hello. Uh yes sake please go ahead. 13:06 13 minutes, 6 seconds Yeah. Namaskar Jansab and uh thank you for the opening remark uh elaborating your your plans ahead. So 13:15 13 minutes, 15 seconds sir uh uh now what should we look forward in terms of our ramp up uh in 13:21 13 minutes, 21 seconds volume of ro products I think so with the commissioning and the analing of the new line with I think so we closed this 13:29 13 minutes, 29 seconds year sub at sub 230 levels so what kind of 13:35 13 minutes, 35 seconds year going forward 225 we closed this year uh uh last year and this we like 13:43 13 minutes, 43 seconds about to cross 250. So maybe 255 you will target but uh let's say for your 13:50 13 minutes, 50 seconds calculations keep 250 in mind 250 is the uh available number for of the road products. 14:01 14 minutes, 1 second Yes, sir. Your line is muffled. 14:05 14 minutes, 5 seconds I'm so sorry but you [clears throat] Hello. Uh 250,000 tons for this year. 14:12 14 minutes, 12 seconds uh you should please keep that figure in mind though we will try to target to sell a bit more but we will see as we go along. 14:23 14 minutes, 23 seconds Okay. uh sir then you have al you have also uh spoken about our cox block uh 14:31 14 minutes, 31 seconds commencement and then the efficiency uh and all kicking in in in so uh post post 14:37 14 minutes, 37 seconds factoring that also we we will keep our AITA uh per turn uh uh trajectory in that 14:46 14 minutes, 46 seconds vicinity of uh 8,500 to uh uh 11,000 only or uh should be that would Our range was our range earlier was 7 to 10. 14:58 14 minutes, 58 seconds We have now from this year we are increasing the range to 8 to 11 and we said 2 years later we would like to increase the range to 9 to 12. 15:11 15 minutes, 11 seconds Okay, it's a two small point. 15:14 15 minutes, 14 seconds We are trending upwards. That's what we seeing that we are we gradually going to be trending upwards. 15:19 15 minutes, 19 seconds Okay. So this year we did average of 8,500 plus even even with all the 15:26 15 minutes, 26 seconds veggies of the market uh we we were able to come back can you come back in the queue there'll be other people I'll address your 15:35 15 minutes, 35 seconds question later this one I'll do that sir but your line is still muffled that could be corrected 15:41 15 minutes, 41 seconds oh I'm so sorry let me am I more audible now yes sir you are audible now thank you so 15:49 15 minutes, 49 seconds much Okay. Okay. Sorry. My apologies for that. 15:52 15 minutes, 52 seconds No problem, sir. All right. So, we'll take the next question comes from the line of Asana and individual investor. Please go ahead. 16:00 16 minutes Good morning, sir, and thank you for the opportunity. Yes sir. First question. Go ahead. 16:07 16 minutes, 7 seconds U what is our current capacity usage and how much can we see improvement in the next year? 16:15 16 minutes, 15 seconds Okay. 16:16 16 minutes, 16 seconds Our current capacity we actually sold full because our rolling mill capacity is was close to 180,000 tons and we have 16:25 16 minutes, 25 seconds done lot of outsource rolling and therefore managed to sell 225,000 uh tons. Uh in the year 26 27 our rolling capacity is 270,000 tons. 16:40 16 minutes, 40 seconds uh and we hope to uh sell about 250 to 200 hope is 255 but for your 16:46 16 minutes, 46 seconds calculations keep 250,000 tons 250 okay sir and sir one more question I have are we expecting any changes in our 16:55 16 minutes, 55 seconds product mix going forward uh not this year uh but uh uh this year 17:03 17 minutes, 3 seconds we'll see the beginning just the tiny beginning tiny shoots as I said we will start uh ing in gut casting in a small 17:10 17 minutes, 10 seconds way and uh so that's the change that we'll see and we'll just be selling ingot products then gradually as we 17:18 17 minutes, 18 seconds learn and as we improve on this we'll be improving the product mix so from next year you'll see small changes but really 17:26 17 minutes, 26 seconds the impact uh that you will see will not be enough impact will take about 5 years for um the outside world to see the 17:35 17 minutes, 35 seconds impact and by then the volume of the new plant would have come in. So again you will not see an impact in terms of proportions. 17:44 17 minutes, 44 seconds Okay sir. All right. 17:45 17 minutes, 45 seconds So for the foreseeable future please assume the same product similar product mix of automotive steels. 17:52 17 minutes, 52 seconds Okay. So we can consider it similar one for the next five years and after five years we can see a good number. 17:59 17 minutes, 59 seconds You you'll start seeing changing. Yes. 18:02 18 minutes, 2 seconds There will be again initially when the new plant commissions there'll be a small small dip in the kind of products we are making because we'll be ramping 18:11 18 minutes, 11 seconds up volume in the new plant and therefore we will be shifting to some commodity products to build up volume. 18:18 18 minutes, 18 seconds So the product mix will will uh be a bit changed and then again so it will remain similar then deteriorate a bit and then 18:27 18 minutes, 27 seconds again start improving from five years from now and 7 years from now you should start seeing a change. I know little 18:35 18 minutes, 35 seconds long-term objectives than most investors on this call but u to see changes in the stuff that I was talking about the 18:42 18 minutes, 42 seconds futuristic businesses it will take five to seven years we'll start making some impact and for a change from investors 18:50 18 minutes, 50 seconds to see maybe seven years onwards okay sir thank you so much and all the very best 18:56 18 minutes, 56 seconds yeah thank you thank you ladies and gentlemen anyone who wishes to To ask a question may I press star and one on data strong telephone. 19:15 19 minutes, 15 seconds Our next question come from the line of Nishita from Crown Capital. Please go ahead. 19:21 19 minutes, 21 seconds Um yes hello good morning. Um so I just uh had a clarification question on the previous participants question. Oh, I 19:29 19 minutes, 29 seconds just wanted to understand when you mentioned that the new capacity that will commission is are you referring to the 500,000 t capacity of limit production? 19:42 19 minutes, 42 seconds Correct. 19:43 19 minutes, 43 seconds Okay. So, I just wanted to understand when are we expecting that to commission? 19:48 19 minutes, 48 seconds Uh, we are expecting that to commission by July 29. Okay. 19:58 19 minutes, 58 seconds Okay. Okay. And uh what is the uh growth trajectory that you can see going forward? 20:06 20 minutes, 6 seconds I'm sorry. Can you speak a little louder? I couldn't hear that. 20:09 20 minutes, 9 seconds Yes. What is the growth trajectory uh that we see going forward like with the IG uh increasing their stake and now 20:18 20 minutes, 18 seconds with all the capex that we are doing if you can give us a growth target that would be very helpful. So the the first 20:25 20 minutes, 25 seconds target is to reach the full 270 to 280,000 tons or that we can make in this 20:32 20 minutes, 32 seconds plant and uh so because our license is 300 300,000 tons of steel making uh if 20:40 20 minutes, 40 seconds we get a government license to increase the capacity which is a 50/50 chance we get 20:47 20 minutes, 47 seconds it then then there is a scope to grow further. So but as of now please target keep in mind 270,000 tons for the next 20:55 20 minutes, 55 seconds three years and then after that there'll be a sudden jump when the new plant commissions. 21:03 21 minutes, 3 seconds Okay. So like for this license have you already applied for the license and like by when can we expect to uh get some results on this? 21:13 21 minutes, 13 seconds So uh we will be applying u uh in two months time. 21:19 21 minutes, 19 seconds uh we have some pending environmental work to be done before that which will be done maybe in May itself and uh uh 21:27 21 minutes, 27 seconds June we will apply and we should know before March of next year. 21:34 21 minutes, 34 seconds Okay. Got it. Thank you so much. 21:38 21 minutes, 38 seconds Thank you. Our next question comes from the line of Schllo Bhartia from Swan Investment. 21:45 21 minutes, 45 seconds Sorry. May I just uh say one more comment that normally if a 20% increase 21:51 21 minutes, 51 seconds in capacity is applied for you don't need a public hearing. So environmental 21:59 21 minutes, 59 seconds approval normally people say what I hear from consultants other people is normally uh not that difficult to get. 22:10 22 minutes, 10 seconds So we are reasonably confident that we will get it. Why I'm still saying 50/50 is because Ludhana still is in the critically polluted zone. 22:20 22 minutes, 20 seconds So uh separately from our CSR activity, I'm talking to think tanks or to see how to work on getting Ludhana out of the 22:29 22 minutes, 29 seconds critically polluted zone. That's a separate topic but that's uh just by the side as an aside. 22:36 22 minutes, 36 seconds She left the queue sir. Thank you so much for your remark. Our next question come from the line of Shlo Bhart from San Investments. Please go ahead. 22:46 22 minutes, 46 seconds Good morning sir and thank you. 22:49 22 minutes, 49 seconds A couple of questions. Yeah, go ahead. 22:52 22 minutes, 52 seconds First thing on the missing of the solar power which you indicate that we'll be generating almost 9 crores of unit in 22:59 22 minutes, 59 seconds financial 28 and with the installation of rating final what sorts of savings one can see in FI28. 23:11 23 minutes, 11 seconds uh we have not shared those figures but but by the very fact that we are saying Arabida range which has been stuck at 7 to 10 23:19 23 minutes, 19 seconds for some time will go up to 8 to 11 this year and then uh 2 years from now 9 to 12 maybe next year 23:27 23 minutes, 27 seconds itself we'll feel more confident uh if the oil price is uh correct if the economy see we are also facing a 23:36 23 minutes, 36 seconds possible recession in the economy uh global economy So a lot depends on what you see trends but we are now for again 23:45 23 minutes, 45 seconds for the first time we are saying that two years from now we we will we should be getting 9 to 12. 23:52 23 minutes, 52 seconds Earlier these figures were just aspirational figures. Now we are saying that we are now quite confident that we should be 24:00 24 minutes able to up the range. So yes those cost savings volume increase all those things are being taken into account. 24:08 24 minutes, 8 seconds So from 8 to 11 to 9 to 12 right now which more looks like a reality rather than aspiration. So is it going to come 24:17 24 minutes, 17 seconds with the more of a cost efficiency or it will be driven by the change in the product mix? 24:25 24 minutes, 25 seconds As I answered in the earlier question, the product mix I don't see a much of a change just now. 24:31 24 minutes, 31 seconds So it is uh volume cost cutting uh process improvement. Even this year uh though we've had record uh profits there 24:40 24 minutes, 40 seconds are areas we we saw that we could have improved further. 24:47 24 minutes, 47 seconds So, so there is clearly you see uh the beauty like some of you where read my 24:53 24 minutes, 53 seconds annual know that I'm a treker. When I go trekking and you cross a mountain which seems at a height as you cross reach 25:01 25 minutes, 1 second that top then you suddenly see newer vistas which were not visible earlier. True. 25:07 25 minutes, 7 seconds So you keep as you improve a partic to reach a particular level then you find newer areas which you didn't see earlier. Then you say you kick yourself 25:15 25 minutes, 15 seconds and say why how come we didn't see it earlier then I have a famous saying for last 30 years jag 25:23 25 minutes, 23 seconds when you see when you see so I don't ask people a question why they didn't see it why didn't you think of it earlier if you think of it today great implement it 25:32 25 minutes, 32 seconds now right agreed agreed agree so one question on your plan now which is 25:39 25 minutes, 39 seconds expected to come in on third quarter of financial 28 What sorts of capex have we spent and how much it is left and 25:48 25 minutes, 48 seconds secondly what sorts of ROC one can assume only on the forging unit. 25:54 25 minutes, 54 seconds So as of now not much has been spent. Uh we have of course bought the land. Uh so and some initial LCS have started 26:02 26 minutes, 2 seconds getting open opened. So really not much has been spent on that maybe about 50 crores 80 crores have been spent and how much you'll be spending in the 9 months. 26:14 26 minutes, 14 seconds The total project cost was uh uh 400 75 cr plus our entity line is also in 26:22 26 minutes, 22 seconds that same previs. So overall the budgeted investment is more than 500 crores. The entity part has already was 26:31 26 minutes, 31 seconds already part of the earlier approved va vss steel expansion of 350 crores. So so 26:39 26 minutes, 39 seconds that uh so let's not double count that but for the uh forging project 475 crores was a budgeted expenditure and 26:48 26 minutes, 48 seconds the way we are going ahead looks like we may not be spending that much. We'll be spending less than that. We'll have a 26:55 26 minutes, 55 seconds better estimate in 6 months time of what will be the actual expenditure but looks like we'll be clearly less than 475 27:02 27 minutes, 2 seconds which we had budgeted and the plant is expected to commission on third quarter of FI28 27:08 27 minutes, 8 seconds let's say uh uh we'll be commission so fourth quarter finally we'll start seeing some performance so really 28 29 27:17 27 minutes, 17 seconds is the first year of performance that you will get realistically and in terms of the payback or the IR I 27:24 27 minutes, 24 seconds mean is there's any as we don't disclose we don't disclose project by project and one line uh as you can make out will not 27:33 27 minutes, 33 seconds be sufficient so we will soon be adding a second line and a third line so we have plans to add uh uh at least three 27:41 27 minutes, 41 seconds lines of forging so that's when it'll be completed and uh so we'll see by when we 27:48 27 minutes, 48 seconds complete this entire uh this this uh forging project but the First line will start operations uh in the fourth 27:57 27 minutes, 57 seconds quarter of uh 2728 and incremental capex for the new line 28:04 28 minutes, 4 seconds assuming the same capacity will be lower will be clearly lower will be and which will be of the same 28:11 28 minutes, 11 seconds capacity right which we in part one phase one again those things we will we will we will uh uh evolve as we go along as we 28:20 28 minutes, 20 seconds are entering a new business those things will take shape as we go along. 28:25 28 minutes, 25 seconds Yeah, that's quite helpful Mr. Thank you and all the best. Thank you. Thank you. 28:33 28 minutes, 33 seconds Our next question come from the line of Ritik from one of financial consultant. Please go ahead. 28:40 28 minutes, 40 seconds Hi, good morning sir. Uh sir congratulation on a great setup number. 28:46 28 minutes, 46 seconds Uh so I have few questions of uh firstly uh has the land acquisition been completed for the new green field plant. 28:54 28 minutes, 54 seconds Uh we are the last stages it should happen the next uh within May we should be closing it. 29:02 29 minutes, 2 seconds Okay. Okay. Uh so my second question is related to the capeex for fi 25 and 28 29:09 29 minutes, 9 seconds uh with the forging plant and also with the new green field plant uh and potentially uh expanding capacity melt 29:17 29 minutes, 17 seconds shop at the existing site. What can be the capex for fi 27 and 28 singler? 29:27 29 minutes, 27 seconds [clears throat] 29:29 29 minutes, 29 seconds 2728 capex huh 2728 for that steel plant and forging 29:35 29 minutes, 35 seconds plant uh will be uh we will be incurring maximum capital expenditure in that year. So a ballpark figure so we don't 29:44 29 minutes, 44 seconds have a calculation but a ballpark figure will be uh more than 700 or 800 crores. 29:50 29 minutes, 50 seconds Okay. The current year not 2728 you are saying. 29:55 29 minutes, 55 seconds No. So current year and next year I'm asking. 30:00 30 minutes Okay. So in current year it will be very less uh expenditure only on procurement of land and uh some uh development work 30:07 30 minutes, 7 seconds but the major capex will happen 2728 only and we are also having replacement items as our old uh peeling line needs 30:15 30 minutes, 15 seconds replacement. We are adding to our testing line and so on. So roughly about uh 100 odd cres of uh uh uh normal capex 30:25 30 minutes, 25 seconds at replacement and quality upgradations and so on uh grow will be done in the next two years uh for normal work for this plant. 30:35 30 minutes, 35 seconds Okay. So 100 crores this year and 700 to 800 to next year for the for the expansions and for the 30:44 30 minutes, 44 seconds existing plant about 100 about 100 crores more and if we get the environmental approval uh then we will take uh maybe another 80 to 100 crores. 30:56 30 minutes, 56 seconds Okay, got it. 30:58 30 minutes, 58 seconds Those are all uh figures are up in um up these are very very ballpark rough figures. uh so once those those things 31:07 31 minutes, 7 seconds come up and then we will take u uh clear uh decisions and then we'll be announced at that stage. 31:16 31 minutes, 16 seconds Sure. Got it. And so just one question on the brownfield expansion uh the melting shop which you are planning to 31:23 31 minutes, 23 seconds take from 300 to 360 KTPa. Uh once we get the approval uh from environment 31:30 31 minutes, 30 seconds from OC uh what would be the timeline for this expansion to get completed? 31:37 31 minutes, 37 seconds If things work out well uh uh our target will be again these are very 31:44 31 minutes, 44 seconds rough idea because delivery of some of these equipment is a long uh uh delivery 31:50 31 minutes, 50 seconds but uh we would expect sometime in later part of calendar year 27. 31:59 31 minutes, 59 seconds Okay. Okay. And EC you mentioned in 6 to 9 months you can get the EC clearance. 32:06 32 minutes, 6 seconds Yeah. So yes, so we we are discussing with the suppliers how to shorten the time otherwise these equipment take a year and a half for delivery. 32:16 32 minutes, 16 seconds We are talking to suppliers and we have good relation and we figure out how we can get it earlier. 32:22 32 minutes, 22 seconds Sure. Sure. Uh thank you sir. I have few questions. I join back in the queue. Thank you. Thank you. Thank you. 32:30 32 minutes, 30 seconds Thank you. 32:35 32 minutes, 35 seconds Anyone who wishes to ask a question may press star and one on their touchstone telephone in order to join the queue. Thank you. 32:43 32 minutes, 43 seconds Our next question come from the line of Manov Goia from Yes Security Securities Limited. Please go ahead. 32:51 32 minutes, 51 seconds Yeah. Hi, very good morning and thank you so much for the opportunity. Uh most of my questions are more or less answered. I just have a couple of follow-ups. So first one being uh you 33:00 33 minutes know so you just guided for web bit per turn to be around 8,000 to 11,000 and you know further going ahead towards 9 33:07 33 minutes, 7 seconds to 12,000 uh on a certain basis. My question comes I mean what sort of realization assumptions are we building 33:16 33 minutes, 16 seconds out over here? Is it the current spot prices or the average for FI26? 33:23 33 minutes, 23 seconds Uh no no so we always look at uh uh it's consistently true whatever you take if 33:30 33 minutes, 30 seconds you take the average of last year even that is fine you take the current even that is fine because uh uh in auto 33:38 33 minutes, 38 seconds industry we don't work as a commodity pricing uh so pricing will change based on scrap 33:46 33 minutes, 46 seconds going up so our uh spreads are more or less protected a little bit here and there it changes which is why we keep a 33:52 33 minutes, 52 seconds range in our epida. So which is why the when the commodity steels have gone up substantially alloy steel prices will 34:00 34 minutes not rise up to that extent and when commodity steel prices fall then alloy steel prices don't fall that 34:09 34 minutes, 9 seconds dramatically either so uh which is why u uh so as I said in my earlier remarks 34:17 34 minutes, 17 seconds opening remarks that the scrap prices have gone up and therefore we are asking for a price increase from uh Q1 and uh 34:24 34 minutes, 24 seconds we are likely to get those price increases in Q1. Those discussions are ongoing. 34:31 34 minutes, 31 seconds Got it. Got it. So basically in a nutshell it's you know much more costdriven uh growth that we are coming 34:38 34 minutes, 38 seconds out with apart along with some operating leverage also kicking in which is why we always talk about 34:46 34 minutes, 46 seconds spreads. We don't talk of actual selling price. I mean uh for example the average selling price of steel was lower in the 34:54 34 minutes, 54 seconds previous year in 25 26 and 24 25. So despite a higher volume our sales are 35:00 35 minutes actually lower on a higher profit. So if it margin looks uh much better than normal net profit margin looks much 35:09 35 minutes, 9 seconds better than normal that's why I don't look at those figures. I always urge our investors please look at iida per ton and volumes. 35:17 35 minutes, 17 seconds Yes. No, that is that is quite helpful. 35:20 35 minutes, 20 seconds So for the green field I mean for the run rate that you have given for the capix over the course of the next couple of years. So just to you know fact check 35:30 35 minutes, 30 seconds it again we have sort of a 100 to 150 kores of uh maintenance kex and then 35:37 35 minutes, 37 seconds incremental 400 500 kores of growth kex figures are more what we will do is I 35:44 35 minutes, 44 seconds think these questions are coming up. We will have exact better calculations after uh next 3 months when we negotiate all 35:52 35 minutes, 52 seconds the machines. We'll have a much better idea and once we have that we'll update our presentation and post it on the uh company website. 36:04 36 minutes, 4 seconds Yeah, sure. That would be quite helpful. Uh just just uh one last question out over here for the green feed plant that we're targeting for July fi uh July of 2029. 36:15 36 minutes, 15 seconds What sort of ramp up do we period do we expect you know to reach the peak uh capacity utilizations over there? 36:24 36 minutes, 24 seconds Very difficult to say that today because you are talking of 6 7 8 years into the future. Who knows what the market is going to be there. 36:33 36 minutes, 33 seconds But uh uh now if I can hazard a guess and please please take this as a very 36:40 36 minutes, 40 seconds very um with a very very very big pinch of salt. U attempt will be within uh 3 36:49 36 minutes, 49 seconds years to reach full capacity. If it could take 5 years in fact in for all our budgeting we have taken five to six years to reach full capacity utilization. 37:00 37 minutes Got got it. So that is actually helpful. 37:02 37 minutes, 2 seconds No, nobody that Yeah. Yeah. Because because again we are not in commodity steels that you just put up a plant and they start producing and selling. 37:13 37 minutes, 13 seconds But the advantage in the new plant will be that uh our costs are going to be much lower than the existing plant. And 37:21 37 minutes, 21 seconds therefore some of the commodity uh within the alloy steel the commodity end of the business like tractors and 37:29 37 minutes, 29 seconds trucks which we normally stay out of because of lower cost of steel making in the new plant. we may be able to access 37:37 37 minutes, 37 seconds those uh markets and therefore we will be uh uh we will try to ramp up earlier. 37:46 37 minutes, 46 seconds Got it. Got it. Sure. Thank you so much and all the very best sir. 37:57 37 minutes, 57 seconds Thank you. 38:00 38 minutes Our next question come from the line of Abdul Jooshi from Tantage Capital. Please go ahead. 38:06 38 minutes, 6 seconds Uh, hi. Am I a little louder, please? 38:14 38 minutes, 14 seconds Can you hear me now? 38:18 38 minutes, 18 seconds Go ahead. We can barely hear you, but we can. 38:21 38 minutes, 21 seconds Okay. Uh, so my question was on the uh if you look at our exports, it has uh 38:28 38 minutes, 28 seconds remained in a single digit. earlier when our guidance was to reach up to 20% of the export by the end of FY27. So with 38:37 38 minutes, 37 seconds the new capacity coming in, I would like to know how we are thinking about the exports going forward. That's my 38:44 38 minutes, 44 seconds So yes, you're right that we had a guidance at that point in time. Uh exports are going to be a much lower 38:51 38 minutes, 51 seconds proportion of our business. Uh but we are seeing exports in the form of components increasing from India. So 38:59 38 minutes, 59 seconds more and more our attention is towards uh serving OES from compreports from 39:05 39 minutes, 5 seconds India including from our forging new forging line. We'll be targeting through some more vendors in India some global 39:14 39 minutes, 14 seconds companies coming in who will use our forge products and machine them and export them. So we'll be looking at that possibility. We are talking to a couple 39:23 39 minutes, 23 seconds of other global forging majors to expand capacity in India that we will supply steel to them. Uh we are talking to some 39:32 39 minutes, 32 seconds global OES who are wanting to source big quantities from India but they will all be sourcing more and more of components 39:40 39 minutes, 40 seconds from India. So Europe as you know is having a much higher cost of operation because of the gas cost, energy cost 39:49 39 minutes, 49 seconds being high, wage costs also becoming higher, unavailability of young people to work in the in the night shifts and 39:58 39 minutes, 58 seconds in hardcore manufacturing and with an FDA which has been signed with the EU uh 40:05 40 minutes, 5 seconds they are expecting much bigger imports of components from India and in Feb which is there for steel exo imports 40:13 40 minutes, 13 seconds into Europe. Uh we stand very well very well placed in CBAM calculations 40:20 40 minutes, 20 seconds and within a year or two I think even components are going to come under CBAM. 40:25 40 minutes, 25 seconds So once components come and some components have already come in some come in in the next coming few years. So because of green steel our abilities in 40:33 40 minutes, 33 seconds green steel uh we will be able to u uh take full more and more advantage of 40:40 40 minutes, 40 seconds this. So export stocks will more will be more and more indirect exports rather than direct exports. 40:49 40 minutes, 49 seconds Okay. Uh do we see a realization or the AITA better into this kind of uh uh uh exports? 40:59 40 minutes, 59 seconds Uh it it depends customer to customer and part to part. Clearly uh for a customer like if you're in the luxury end if you're able to serve a customer 41:08 41 minutes, 8 seconds like BMW or Mercedes-Benz the prices are normally a bit better. 41:14 41 minutes, 14 seconds So in some cases yes prices are better. 41:20 41 minutes, 20 seconds And secondly on the paging part when uh we are building the capacity which will come on stream by uh beginning of the 41:28 41 minutes, 28 seconds say uh January 28 but uh on the other side the customer approvals or uh how 41:35 41 minutes, 35 seconds long that will take for us to get uh ramping up. 41:40 41 minutes, 40 seconds So we are I think it's a very valid point. So we are strategizing because our partners I are amongst the world 41:48 41 minutes, 48 seconds leaders in the kind of 4G we're going to enter into. So we are talking to customers if we can start supplying from Japan initially 41:57 41 minutes, 57 seconds uh to get those approvals and uh since uh I is the partner here and I uh is 42:05 42 minutes, 5 seconds people are going to be heading the forging so attempt will be to reduce the approval process and approval time. 42:15 42 minutes, 15 seconds Okay. So uh on ballpar what's our uh product validation or the process validation period for products like uh 42:23 42 minutes, 23 seconds posing for us any very difficult to say it'll vary from customer to customer. 42:30 42 minutes, 30 seconds Okay. So some customer that we are talking to all these are just not talks because everyone says we haven't seen the product we haven't seen the factory 42:38 42 minutes, 38 seconds just now. So these are all talks but uh hopefully for with the couple of customers we have talked to uh we should 42:47 42 minutes, 47 seconds be validated before our plant starts production. 42:51 42 minutes, 51 seconds So we are integrating the two things you know through our partners because of our partners otherwise it'll be very 42:58 42 minutes, 58 seconds difficult because of our partners I uh we will be uh we should get better 43:06 43 minutes, 6 seconds approval for some customers for some customers like Maruti they very clearly said we will first see the factory in operation here then start the validation 43:15 43 minutes, 15 seconds process so is it fair to uh say proposing ramp up will happen in FY 28. 43:24 43 minutes, 24 seconds So or uh by the end date of FY 2. 43:27 43 minutes, 27 seconds No no no no 28 29 we have we very clearly said it is going to start operations in uh Jan to March of 28 ramp up will be 2829. 43:42 43 minutes, 42 seconds Thank you. That's promise. Thank you. 43:49 43 minutes, 49 seconds Ladies and gentlemen, anyone who wishes to ask a question will press star and one on their telephone. 43:59 43 minutes, 59 seconds Next question come from the line of Sakit Kapoor from Kapoor and Company. Is this correct? 44:07 44 minutes, 7 seconds Hello. Yes sir. Welcome back. 44:11 44 minutes, 11 seconds Thank you sir. uh uh so just to take the chronology of events for this financial year we we are modeling in or factoring 44:20 44 minutes, 20 seconds in a 10% uh volume growth with a higher AITA abita range by rupees,000 44:27 44 minutes, 27 seconds and then uh when when are we expecting the the uh uh how will the forging and the new steel plant commensurate to each 44:36 44 minutes, 36 seconds other mean uh if you could just explain the chronological event and uh for this 10% volume will be flattened out for the 44:44 44 minutes, 44 seconds coming two years. That means we will be reaching the peak for this year and even for the next next financial year. Is this understanding correct? 44:52 44 minutes, 52 seconds Uh no. So 250 255,000 that we reach now. 44:57 44 minutes, 57 seconds Uh we will uh uh the next year will be 270 or 275. We will have to see the 45:04 45 minutes, 4 seconds exact numbers and uh then we will try to see we will try target some outsourcing and so on. So we'll try to we'll keep seeing that we are trying to grow that 45:12 45 minutes, 12 seconds we will not stop growth but to figure that out two years later what kind of model we will have is difficult to say 45:20 45 minutes, 20 seconds just now. So for your calculations please assume static at 270 or 275 and then if we get this government 45:28 45 minutes, 28 seconds approval environmental approval then yes then then this sales will increase. So uh it's very difficult to commit today. 45:36 45 minutes, 36 seconds So uh as far as this plant existing plant is concerned 270 is the figure you 45:43 45 minutes, 43 seconds should take where we remain static at and then in 28 29 uh we will start seeing results of the forging business 45:52 45 minutes, 52 seconds but it'll be a very small volume so really not see any impact and the new steel plants will get commission in 2829 45:58 45 minutes, 58 seconds also July 29 is the target and then uh you'll see volumes coming in towards the 46:05 46 minutes, 5 seconds second half of 2829. So 2930 we will start seeing a better impact of the new plant. 46:14 46 minutes, 14 seconds Okay. And the government clearance is for the existing melting shop of three lakh uh and we are we are contemplating a 20% uh increase on the same. 46:25 46 minutes, 25 seconds No no currently we producing less than three lakh tons. So we will our first attempt is to quickly go to three lakh t which will happen next year. 46:33 46 minutes, 33 seconds [clears throat] 46:34 46 minutes, 34 seconds and and the government and the government clearance is for three lakh. So we'll be we'll be at full government capacity level. 46:44 46 minutes, 44 seconds Right. Uh when we look at our plant and uh property closing balance for the 46:51 46 minutes, 51 seconds financial year uh 26, it is closer to 585. 46:58 46 minutes, 58 seconds uh and that is a significant increase from the last uh last year closing balance. So if you could just give us 47:06 47 minutes, 6 seconds understanding uh of the breakup of uh how the capex uh has been uh and uh 47:12 47 minutes, 12 seconds I think they sent a specific email to the to the CFO and this will be answered but largely we have had capex going on 47:21 47 minutes, 21 seconds there block was commissioned our reheating furnace was commissioned some warehouses 47:27 47 minutes, 27 seconds were built uh currently being built and uh land has been bought. So those are the things which which is uh there. So 47:36 47 minutes, 36 seconds as you know that we bought some land initially where we started buying the land for the steel plant. We are stuck at 50 cr. So that's one area we have for 47:45 47 minutes, 45 seconds some possible expansion and then we bought land and with a constructed shed for our new forging line. So so this is 47:54 47 minutes, 54 seconds all largely for the new capex for the new plants as well as the cox block and the reheating furnace. 48:04 48 minutes, 4 seconds Okay, two more questions. Firstly on the incentive part uh for the current financial year what should be factor in 48:12 48 minutes, 12 seconds for a quarterly run rate uh in terms of the government subsidies whether it is electricity or the other tech subsidies 48:19 48 minutes, 19 seconds if any uh for the full year if if you could share the number and also for the new steel plant uh does it fall under 48:27 48 minutes, 27 seconds any uh uh government incentive or PLI benefits that we are going to acrue uh going ahead 48:35 48 minutes, 35 seconds uh the new plant will not be under any PLI. [clears throat] However, uh it will be under the Punjab government subsidy 48:42 48 minutes, 42 seconds scheme. So uh again we will have a similar set of subsidies uh of electricity duty as well as GST uh 48:51 48 minutes, 51 seconds refunds and some capital subsidies some on worker. So there will be subsidies in your plant also sing this year what is 48:59 48 minutes, 59 seconds the subsidy question. So uh currently we are getting uh two types of subsidies from the Punjab government. 49:07 49 minutes, 7 seconds One is electricity duty exemption and the second is GST refund. So electricity duty exemption will continue until 49:14 49 minutes, 14 seconds August 29 49:31 49 minutes, 31 seconds add. 49:34 49 minutes, 34 seconds So uh for next financial year it will be close to uh 12 to 13 crores per both the incentives because 49:42 49 minutes, 42 seconds electricity duty exemption will also come down because of uh the solar power uh commissioning. So the total uh 49:49 49 minutes, 49 seconds incentive will be close to 13 crores in this financial year. 49:53 49 minutes, 53 seconds In this current financial year yes 26 27 and how much have we factored for financial year 26? 50:01 50 minutes, 1 second It is uh 24 crores. 50:04 50 minutes, 4 seconds Uh it will be half for the next financial year. Yes. 50:10 50 minutes, 10 seconds Right. And one more understanding Jantaa when I joined the queue uh in in terms of the forging unit uh the forging unit 50:18 50 minutes, 18 seconds will serve the uh the products from our our uh the current facility and the new 50:25 50 minutes, 25 seconds steel facility both uh or will will it just cater to the five lakh t uh new plant that we are contemplating? 50:34 50 minutes, 34 seconds You know it will start from here and then uh 50:42 50 minutes, 42 seconds diameter because I'm sorry sir but your voice your lang 50:49 50 minutes, 49 seconds is my part your voice is my fault sir we can't hear you 50:58 50 minutes, 58 seconds new steel plant but initially it will come from this plant because that's what we have Sir will you repeat the same sir? We could not hear you sir. 51:07 51 minutes, 7 seconds I said most of the all volume will come from the existing steel plant to start with. Once the new steel plant gets 51:16 51 minutes, 16 seconds established uh and the quality gets then more and more of the volume for the current products that we are putting in will come from the new steel plant. 51:28 51 minutes, 28 seconds Okay. And lastly suggest thank you. I'm sorry to interrupt you Mr. Kapur but you may please rejoin the queue for more questions. Thank you. 51:37 51 minutes, 37 seconds Our next question come from the line of Priyanka Sarkcar from Square 64 Capital Advisor. Please go ahead. 51:44 51 minutes, 44 seconds Uh good afternoon. Uh good morning sir. 51:47 51 minutes, 47 seconds It's a couple of questions on the balance sheet front. Uh what are the plans of funding in terms of debt equity 51:54 51 minutes, 54 seconds and internal acrual? Uh that's one. And also do we have any uh figure in mind that we don't want to cross a certain 52:00 52 minutes debt equity ratio that we won't be comfortable crossing? 52:06 52 minutes, 6 seconds Uh yes uh at the peak uh debt equity uh we will keep it below 0.75 52:15 52 minutes, 15 seconds total debt equity. So and we are comfortable at 0.5. So uh there will be an equity infusion. 52:25 52 minutes, 25 seconds There'll be a further equity infusion sometime later part of next year. Uh and at that point in time we'll see how 52:33 52 minutes, 33 seconds we'll fund that equity. So uh clearly our partners I are ready to invest more group has committed 3 to 400 cr rupees. 52:42 52 minutes, 42 seconds So uh we will have that also and at some stage we might do a QIP or something for 52:49 52 minutes, 49 seconds outside investors. So roughly we see about a 1200 cr of uh equity infusion 52:57 52 minutes, 57 seconds out of which 385 has already come in. So about uh 800 crores or so roughly equity 53:04 53 minutes, 4 seconds and about 1,200 cr of debt which will be uh uh raised 53:11 53 minutes, 11 seconds right sir. Okay thank you very much and wish you all the best. Thank you. Thank you. 53:19 53 minutes, 19 seconds Our next question come from the line of Anil Kumar Sharma and individual investor. Please go ahead. 53:26 53 minutes, 26 seconds Good morning sir. First of all congratulations the wonderful job you are doing for us for all of us. Sir my 53:33 53 minutes, 33 seconds question has already been uh answered up to some extent. My I want some clarification as you recently said that 53:41 53 minutes, 41 seconds uh our cap uh equity will be 1200 cr and that will be 1200 cr. So uh what are the 53:48 53 minutes, 48 seconds total expenditure capex you are thinking about? It means just now it was 6,700 53:56 53 minutes, 56 seconds cr. So but how much capex you are planning up to 30. So so the total capex 54:03 54 minutes, 3 seconds that we have planned for the new steel plant is about 2,000 crores for the forging project is about 475 crores 54:13 54 minutes, 13 seconds which has been announced. We feel that capex would be a little lower than that. 54:19 54 minutes, 19 seconds Then there is some uh internal capex plus we will also start some replacement 54:25 54 minutes, 25 seconds capex and normal capex and then uh as I said we are going to start a process of inet casting and then moving into 54:34 54 minutes, 34 seconds specialized uh uh uh alloys. So as those plans get formulated there will be 54:42 54 minutes, 42 seconds investments in um electrol refining vacuum arc refining vacuum induction melting. So all those areas we have to 54:51 54 minutes, 51 seconds study but I'm saying that the directional area where we'll be investing in those. So those have not been um uh uh discussed fully announced 55:00 55 minutes so planned fully. So in the next one year we'll be finalizing those and announcing our plans in that area. So 55:07 55 minutes, 7 seconds five it'll be a smaller investment to start with. We are a risk averse group. 55:11 55 minutes, 11 seconds When we enter into a newer area we'll start with a smaller area smaller investment and then gradually build up. 55:18 55 minutes, 18 seconds So but as of now the committed investment is about 2,600 crores. 55:27 55 minutes, 27 seconds Okay. Yeah right sir by only second question is s how much after this all the established capacity plan as planned 55:35 55 minutes, 35 seconds is already there is committed s what are your ro you are keeping in mind actually you are always talk of some sort of 55:44 55 minutes, 44 seconds target of ro what can we get some figure after 30 so after the plants are uh established 55:53 55 minutes, 53 seconds and running towards full capacity utilization a bit down capital employed we hope to continue to be above 20%. 56:03 56 minutes, 3 seconds Okay. All right. Thank you sir. 56:05 56 minutes, 5 seconds This is a very very futuristic figure because we looking into the future. 56:10 56 minutes, 10 seconds So but yes below 20% then it doesn't make sense for us to continue investing. 56:17 56 minutes, 17 seconds So Mr. S and thanks once again for your wonderful efforts you are doing. Thank you. Thank you energy. 56:24 56 minutes, 24 seconds Thank you. Thank you. 56:26 56 minutes, 26 seconds Our next question come from the line of Sri Ram an individual investor. Please go ahead. 56:32 56 minutes, 32 seconds Thank you for the opportunity. Uh so what will be the components that will be made in the forging plant and uh what will be the capacity like if you can 56:39 56 minutes, 39 seconds also [clears throat] give in terms of asset terms of the forging plant it'll be helpful. 56:44 56 minutes, 44 seconds See we are entering a new business. So it's very difficult to give all those numbers. Uh we are entering into the 56:51 56 minutes, 51 seconds area of ring gears. So that's the area we are entering into. Each car uses one 56:58 56 minutes, 58 seconds ring gear. So that's the potential volume uh for car manufacturing in India and exports. It's a superior method of 57:08 57 minutes, 8 seconds making ring gear. So it's not a new product. It'll be replacing an existing product with which customers are already using with a far more efficient process. 57:18 57 minutes, 18 seconds All customers we have talked to are very excited with the announcement of the project that we are bringing into the 57:27 57 minutes, 27 seconds country. Now I is one of the world leaders in this method of uh gear making and uh that same knowhow is going to come into India to VSSs. 57:41 57 minutes, 41 seconds As of now um as per their study there really is no viable competition 57:48 57 minutes, 48 seconds uh for this process of gear making as per IC's knowledge. We are still new in the area of forging. So we are relying 57:56 57 minutes, 56 seconds more and more on their knowledge and their uh confidence in this this process. 58:02 58 minutes, 2 seconds They have nine lines of this product. We are putting in only one line just now. 58:08 58 minutes, 8 seconds Fine sir. Understood. Thank you. Thank you. all the people. 58:12 58 minutes, 12 seconds Thank you so much ladies and gentlemen. That was the last question for today. I would like to hand the conference over to Mr. Jen for the 58:21 58 minutes, 21 seconds closing remarks. Thank you and over to you sir. 58:25 58 minutes, 25 seconds So uh ladies and gentlemen, thank you so much for the interest that you've shown in our company today. Uh so today I did 58:34 58 minutes, 34 seconds lay out some u futuristic thinking. uh again now as managements our job is to 58:41 58 minutes, 41 seconds look 5 7 10 years in the future which may be longer than the horizon for some of you but I also see some of you on 58:49 58 minutes, 49 seconds this call are HNIs and individual investors who may have a longer term perspective also so uh our job is to 58:59 58 minutes, 59 seconds show the direction in which we are going while maintaining existing performance so if the existing performance 59:07 59 minutes, 7 seconds to be maintained is very very important and continue to enhance and make the company stronger as we go ahead. So 59:14 59 minutes, 14 seconds thank you so much for your interest and we look forward for your continued support. All the best. 59:19 59 minutes, 19 seconds Thank you so much sir. Ladies and gentlemen on behalf of Van Special Stills Limited that conclude this conference. Thank you for joining us and you may not disconnect the lines.