ladies and gentlemen good day and

welcome to the Q3 fy2 24 earnings

conference call of JTL Industries

limited hosted by noama institutional

equities as a reminder all participant

lines will be in the listen only mode

and there will be an opportunity for you

to ask questions after the presentation

concludes should you need assistance

during the conference call please signal

an operator by pressing star than zero

on your Touchstone phone please note

that this conference is being

recorded I now hand the conference over

to miss Nia tala from Nama institutional

equities thank you and over to you

ma'am thanks Michelle good evening all

on behalf of noama wealth management we

welcome you all to the JTL Industries Q3

f24 conference call we are joined today

by the Senior Management of JTL

Industries repres presented by Mr aul

gar CFO Mr P singla whole time director

Mr Dr singla whole time director we will

now start with the opening remarks by

the management followed by the Q&A I

would like to first hand over the call

to Mr pran singla for a brief opening

remarks over to you

PR thanks ni thanks noama for hosting

our quarterly earings call good

afternoon everybody thank you for

joining us today for this conference

call we welcome you all for our Q3 f24

on

call uh let's begin the call with a

brief overview about the company with a

rich history over three decades we have

evolved into a fastro steel tube

manufacturing company we specialize in

producing a diverse range of products

including aw black steel tubes and pre

galic and gallic pipes large diameter

steel tubes and pipes solar structures

and Hollow structures we operate through

four manufacturing facilities located in

Punjab Maharashtra and sou out of which

out of which two facilities are PAB and

as a total group capacity we standard a

capacity of 5 lak 86,000 mric time all

our plans have a capacity to produce the

VAP product which is the giz type under

our radar right now uh which uh gives us

access to strength and finishing of

products additionally our C plant is

back integrated and offers us cost

synergies and facilitating the

procurement of raw materials at

competitive prices at JPL we have 10

District Brands offering cative of

thousands of sqs these products find

applications across diverse Industries

such as construction C infrastructure

heavy Vehicles water distribution energy

and many more with a network of over

thousand dealers and Distributors we

effectively serve the entire nation and

extend our reach to International

markets spanning over 20 countries of

across five continents our export

primarily consists of GI types uh

consuting of to approximately 90% of the

export mix else to H High revenues and

margins moreover we hold the previous

recognition as a star export house by

the government of India um I'll give you

a brief about the financial performance

regarding our business performance we

experienced a robust demand for our

products resisting in uh resulting in a

noteworthy 76% increase in sales volume

to 1 lakh N1 905 metric T in 43

f24 uh compared to quarter quarter 23

f24 on the broader perspective our 9

months uh sales volume grew by 62%

reaching to a total of 2 lakh

10,933 metric TS on W basis which also

surpassed our fi23 sales volume of

24,000 metric tons furthermore our sale

in the value added product category

witnessed a notable increase growing by

46% from 54 metric 54,000 metric tons 9

months in last Financial year to 81,000

metric tons in 9 months s 24 a revenue

grow by 65% to 5674 million in quarter 3

f24 and by 46% to 15743 million in 9

months f24 this was led by the increase

in demand of our

product 46% to rupees 429 million in qu

s24 and the 50% to 1154 million in 9 f24

led by increase in scale of operations

however in Q f24 are beta margins

decrease led by decline in sales of VAP

products due to scheduled maintenance of

a ganizing part this is a periodic

measure taken by us to maintain a

product quality and standards for s24 we

expect our Revenue to increase by 35%

from s23 and Marin shall remain in Upper

trajectory U from of what you will

witness in this year

on the industry front uh we expect the

demand of structured steel tubes to

remain strong for the next few years

surging by approx 12 12

13% uh backed by robust infrastructure

demand ped by the government was uh

construction Oil and Gas and Water

Supply uh going for going forward to uh

see

the see the forthcoming opportunities we

are targeting to reach a total

manufacturing capacity of million tons

by f25 moreover to enhance our

manufacturing capabilities we have uh

plans to implement DF at a manga

facilities by the squad itself which

will be to you know one lakh metric tons

this initiative will not only enhance

our capacity utilization and

Manufacturing efficiency but will also

open doors to new job markets this will

also increase the sqs by the range of

500 as well right now uh the sqs we

stand at out th000 and post the uh

installment of dfp we should be standing

at sqs simultaneously we are

strategically outlining a significant

capacity expansion initiative in a marra

through City JT lied which will further

Elevate our manufacturing capability

allowing us to broaden our product

portfolio and offer an array of products

Under One

Roof uh this uh through this capital

expenditure we aim to incorporate uh

additional DFD lines expand the

capability to manufacture GMA Ste us

pipes introduce a range of color coed

products and implement back back from

The Creation in a facility which will

facilitate the production of Three G

seeds in order to meet the desired

Target we have proposed to raise a total

of 1310 crores to various means of this

fund raise we will raise rupees 810

crores via fully convertible warrants on

preferential bases uh through promoter

and nonpromoter category the remaining

500 cres shall be discussed through QP

route post post completion of expansion

our of VAP products will increase which

is further increase our p as well

handing over back to

SM uh sir should we open the floor for

the Q&A session sure sure thank you very

much we will now begin the question and

answer

session anyone who wishes to ask

questions may please press star N1 on

the Touchstone phone if you wish to

withdraw yourself from the question C

you may press star and two participants

I requested to use only handsets while

asking a question question ladies and

gentlemen we will wait for a moment

while the question CU

assembles

we'll take the first question from the

line of Amit diit from ICICI Securities

please go

ahead yeah hi uh good evening everyone

and thanks for the opportunity I have a

couple of questions the first one is

around per 10 which has come off

slightly compared to the last quarter

while in your prepared remarks you

indicated that this was primarily due to

lower uh proportion of value added sales

mainly because of some maintenance

activity just wanted to understand do

you also did you also see in the last

quarter some amount of dealking uh

because of anticipated Fallen steel

crisis some of your peers have indicated

that um if so has this dealking ended

and uh are we likely to see U you know a

higher growth in sales volume in the

coming

quarter yeah hi am G uh thank you for

your question um here I would like to

say that we have uh uh witnessed in this

quarter our highest ever sales volume of

about uh 1 lakh 1,000 tons and uh this

was uh we didn't face any dealking uh

criteria from the stockist because we

present in both the markets primary and

secondary so we we have a good

opportunity to push our material in

either of the markets when the other

Market is not performing better yes

there was certain problems in the

primary Market uh due to uh Channel

destocking and the prices being

corrected uh over a period of month in

the last quarter but all in all uh We've

uh witnessed uh that we we were able to

push out more material than the previous

quarters in the previous year as well uh

here in one key factor I would like to

mention for uh slight correction in Lan

is uh due to the change in um our uh

value added product City so since we uh

were able to achieve a higher number of

volume uh uh our value added product due

to maintenance uh schedule and uh uh

was affected and also uh since we were

able to uh push out more quantity our

value product did not increase in that

fashion so uh there in we had certain uh

uh correction in the overall beta but T

levels which was uh not very substantial

but uh yes uh it was present also Amit G

if you look at the value product Dage so

we have a net Dage increase over the

past year over the past quarter

financially 23 as well uh last year in

quarter 3 our VAP product was to of

14,000 metric tons but this quarter our

VAP was around 19,800 metric tons so

Quantum wise it has increased but as the

company is growing and expanding their

SQ and Gathering the markets in the

black p Market as well so that's why the

percentage way maners the percentage

seems low and if you look at the 9

months rer for turn as well so that's

Somewhere In Tune uh to the last year

itself last year our beta per turn of 9

months were around somewhere 472 and

this year we close to 4500 so uh the

exact picture of a company performance

doesn't depend on V but off quarter it's

more accurate to uh Pi the picture of

the full year or halfly that's a better

way to look at the picture every quarter

the dip and Rise of V button is very

natural land can

happen yeah uh thanks for the elaborate

answer absolutely appreciate that the

second question is on the expansion plan

so just wanted to understand if you

could uh first of all let us know uh you

have high you have indicated four

buckets that is additional DFT line G

steel tubes and pipes color coated and

you know the backp integration if you

could break capex into these four

buckets and also uh if you could also

highlight some of the Milestones that

which capacity would be commissioned uh

when the when each capacity would be

commissioned so that we get an idea of

the you know of the overall uh capex

plan the crack of the overall capex

plan so U as we mentioned before as well

our entire kex for the first million ton

will be comped before

f25 so we are well on track for that as

we mentioned in the last conon as well

that we are expected to receive a DST

this quarter and apart from that aons of

additional Machinery R facility as well

so that is well in track and should be

happening this quarter itself and the

production shall be start the production

will start to flow for the same in the

next quarter uh of the financial year as

well and if you talk about the uh other

capacity expansion which is the DF which

is supposed to come next year as well

and apart from that a lack of Machinery

again in Maharashtra to complete a

million times that's well in track and

we shall be completing completing that

before time and uh to discuss about the

next expansion that we planned so the

company had already goals to reach a

capacity of 2 million times by F28 f29

before but after the uh whole fundraise

uh the management uh the promoters push

off money as well the game plan has

changed and we shall be receiving the

capacity of 2 million tons uh by cutting

it to two by two years so the entire

capacity of 2 million tons shall be re

installed by

f27 by end of 27 everything shall be

installed and the effective play of

everything should be happening at

F28 so this is a broader picture I can

elaborate and tell you that how we

expanding and growing in our

Network okay sure that's very helpful I

will maybe I'll will get the details

offline in the interest of time thank

you and all the best thank you thank you

thank you the next question is from the

line of pavin Pand from aena Investments

please go ahead yeah hey hi uh I just

wanted to understand the trend of our

export volume and uh just get a sense of

why they have behaved the way they have

behaved over uh comp on a comparison

with last quarter as well as

year hello hello yeah can you hear me

brov yeah so the sport uh volumes didn't

have a upper shift this quarter as there

was so much abundance uh demand of the

market of the product in the domestic

Market itself so the company was more

focused on uh culating the product in

the domestic Market itself so net to net

we didn't have an increase in the

domestic uh in the export market and we

were well in line of the last year last

year's

numbers there's a more the company has

been focusing more the domestic SS them

export right

now okay addition additionally what has

happened is like um uh since the last

year certain dynamics of exports have

changed especially in the last

quarter um the problems of the Red Sea

had risen due to that uh there was

certain stoppages in export shipment so

we we we fac certain problems in

receiving uh the allotment of container

that is another reason of a slight uh

dip in our uh exports of the last

month okay uh so I'm assuming our export

numbers should also be you know I think

exhibiting higher growth in the period

ahead because of the backlog we had this

quarter is it safe to assume that yeah

we we are stting in the next quarter uh

since uh it's the first quarter for the

the rest of the world and it's the last

quarter for uh India just Financial uh

so everybody is in the in a positive

pushes the material in a positive manner

from both the directions we we would

anticipate that we should have certain

uh growth in the next

quarter okay uh and when we look at our

nine month uh numbers our margins have

sort of expanded very slightly so is it

all because of the efficiency

enhancement in our production

processes uh yes it's because of con

scale as well you can say that and

moreover the company production has like

the production that we did last year has

already in Sur in 9 months so there's

some effective benefits the company

receive and it's been that scenario

itself itself okay and will we see as as

more capacity comes in the utilization

improves will we see more the uh

Improvement as the scale

improves we can expect that the company

is also working on Max Capacity right

now like we fully utilized right now so

it's very hard for me to produce more

than this quantity uh given the capacity

that I have right now so one can say

that time will tell how how is the

capacity expansion and the effective Ro

playout okay uh and just last uh last

one thing uh could you just help us with

the Q andq change in steel prices

sorry can you come again with this

question could you help us with the

change in steel prices for the quarter

how how has the HRC prices

behaved so uh in the third quarter uh as

compared to the previous year there was

a good correction in the prices of HRC

and also the secondary Market had a

correction in prices and the difference

between the the also had increased in

this uh particular quarter but uh again

uh when uh as I mentioned with the

earlier question of Mr Ahmed

[Applause]

that despite all this we were able to

push out more material because of our

presence in both the markets and uh

perform uh give a better uh quantity

performance uh this

water uh having been said that uh there

was a slight Cor elction uh in the last

quarter for HR coils as compared to the

Q2 of this year and uh uh certain uh the

stock channels as well uh the this

quarter quarter 4 uh we see a upward

correction in the prices happening

people are wanting to push up more

material the international prices have

also corrected to the up for Direction

so we believe in the coming uh months uh

there should be a good demand and uh uh

of the of Steel and especially y types

you wonderful that was really helpful

thank you thank you thank you ladies and

gentlemen in order to ensure that the

management will be able

to ladies and gentlemen in order to

ensure that the management will be able

to address questions from all

participants in the conference please

limit your questions to one or two per

participant should you have a follow-up

question please rejoin the game thank

you we'll take the next question from

the line of CA kit K from nvest

analytics please go

ahead uh hello am I

audible yes sir please proceed uh

congrats for a good set of numbers uh

you mentioned uh like we are present in

primary market and secondary Market both

and that led to uh improvement in our

volume G compared to our peers so can

you please uh put some color or give

some more understanding on that like are

we using Patra as a raw

material um yes that's right we use

skelp as a raw material so we are

prevalent in both the markets gring

secondary V so in primary we use hrp and

secondary we use

K and uh so um yeah to add to that uh to

add to we uh we are uh we we have

divided our plant in such a manner that

uh our production gets divided this

manner our plants located located at rur

and M goard work on secondary Market

basis are plants located at bar SE and

bang work on a primary Market

situations understood and you mentioned

like uh the gap between the primary

steel and the secondary steel increased

in this quarter so that I think that

that helped you people to increase the

volumes right on the secondary Market

side yes yes so the the gaps the Gap

keeps on changing on a monthly basis and

uh uh at certain points of time uh it

helps us push the quantity of the

markets and uh how the scenario will be

in Q4 like uh how do you look at

it um The Gap is still prevalent and we

are anticipating that uh uh the this

after the correction uport correction in

the steel prices of HR coils this Gap

would still remain as it is as it was in

the Q3 levels so there should be a good

demand in both the segments in the

quarter

4 okay go it and you mentioned like like

on your kex side so you mentioning about

the DFT you mentioning about the GI

backward Integrations so I think all

these things the entire new capex that

you are targeting is towards the uh

value added price is that understanding

correct uh to reach to pass to 1 million

tons from current 6 lakh tons 2 lakh

tons is

toward uh value added products of DFT 2

lak tons is of commercial black ped

production uh apart from that from

increasing capacities uh from 1 million

tons to 2 million tons going from for

backward Integrations and power

Integrations those all capacities will

be increasing in the value added segment

so uh yes our Endeavor is to increase a

majority of our capacities in the value

added segment to be able to achieve

about 60% of our product the profile for

Val understood and if we look at the

next expansion phase in the second Milli

turn the entire produce would be VAP so

that's something f as well the entire

produce from the second expansion will

be VAP with my mods uh understood and uh

like your current net block is around

100 CR right and capacity we are having

around 6 lakhs so can you help me to

understand uh like U uh this 1300 CR is

a huge huge amount so how much of it is

going to be exactly towards the

increment of capacity and how much is

how much of it is going to be towards

the working capital

needs our drop block is not 100 right

now it's Sue to the round of 140 and uh

if you talk about the cross flow going

ahead like the Caps happening so we

would the machineries would be somewhere

around 8500 CR to the second expansion

and uh so the entire gr block would

stand around

1,00 crores or close to 1200 crores yeah

and the company would be expecting a top

line of uh 10,000 CR Plus on

that understood and you are saying uh

this this will get this will be

completed by the end of feary 27 is that

understanding

correct exactly exactly so giving a

waterwise breaker would be very hard

because one really doesn't get to know

as in when the machine is ready and

plant to arrive at the plant but the

Brad picture is that every Everything

shall be installed by for

27 understood and how much time uh or

how much uh how much time will it take

to ramp up the things like is any

estimation of

that so it it will take around uh two

three quarters to ramp up everything and

U although the effective capacity

reduction in the first quarter of the 28

should be significant bump as

well understood and what what is the

overall volume Target for

f24 for f24 we are well in track so we

as we mentioned last time in the conon

call as well we expecting a 30% growth

uh over the H1 so we are well in track

for that understood and in Q4 uh is it

likely the realizations will improve

because GI plant scheduled maintenance

is over and you are seeing uh prices of

the steel will also increase so that

will contribute to increase in

realization yes as the if talk about the

V for done that might increase because

our VC would be back on track above the

level but uh it's really hard to tell

about the average uation of a product

because it's totally dependent the HC

and uh prices of RA material in the

secondary

Market okay understood sir uh thank you

very much sir and all the best for the

future thank you thank you the next

question is from the line of vikas Singh

from Philip Capital please go

ahead good evening sir

am I audible yeah yes sir my first

question pertains to when we will be

having our million capacity by f25 what

percentage of our fil would be inhouse

or backward

integrated and what percentage it would

be at the 2 million 10 by

f27 can you come back a question it

wasn't clear that

much

so um Mr vikas Singh's line has been

disconnected in the meanwhile we'll move

on to the next question which is from

the line of adita valer from access

Securities please go
ahead yeah thank you for the opportunity

uh it's good to hear PR that we are

expanding and we will be reaching 2

million ton capacity by

527 uh so just on that front uh what

will be our uh ballpark utilization uh

for FY 27 assuming that we reach 2

million T by FY

27 so the effctive utilization on the 2

million tons it's very easy to give that

year F 28 50% because that's very easy

tet to give obviously we aim to increase

it as soon as possible as the produ

capacity installed but as you know the

production takes up ramping up every

quarter on quarter so it's very easy to

say that effective production of uh 2

million turn would be happen to you know

50% in

F28 50% in FY 28

okay okay and what is your target

internally for per turn by that time so

if you can just uh throw some

uh a large number means not a very

precise number but

you by 27 and

28 so we are expecting

as we closed last year around 5,000

rupes a bet per return so our projection

for F28 is a 50% DMP over that for the

F28 numbers as a Valu produ K would be

expanding the numbers should be tuning

to the range of

that understood and uh on the CeX

scheduling so when we have CeX kicking

to the Max from which year uh means uh

for fi25 which understood that we our

CeX is on schedule but for the next

phase of expansion of 2 billion T

additional 1 billion t uh what what will

be the CeX

profiling so it's already under process

which is happening to the fact that a

part of Machin for the second million F

has also arrived in a Maharashtra unit

so the uh Machin is coming as in when

every quarter every half and uh the

seive installation of everything thing

should be happening again again as I

mentioned at 27

end okay so it's mix Machin is happening

second uh capacity second mil capacity

is also coming well in time before that

so it's a mix of everything and coming

as in by the quarter and

quarter so by end of 5.27 we can assume

majority of our uh 1300 CR CeX will be

over majority the entire will be over

entire will be over okay uh lastly from

a demand perspective means uh it's good

that we are expanding and uh we have a

demand visibility but we can see that uh

sometimes Traders push back and there is

a d stocking in the system so from that

perspective do you see that our demand

visibility is there when we have

additional 1 million T capacity so

effectively when we have 2 million tons

of capacity by f27 28 at that time uh

because the competitors are also growing

their capacity so from that perspective

will there be any impact from demand

side um yeah to answer that I would

simply say that we we are not expanding

our capacities in the size ranges or SV

that we currently

producing So currently if we are

producing a range from half in to 10 in

we are bringing in DF structur we

bringing in higher D higher size higher

te side then for uh supporting the uh

forward backward integration we bringing

in uh prizing lines and then venturing

into uh CRM processor so ouru we are

increasing our SK a product line our

product profile so we don't have to bag

on only the present dealer Network we

are able to expand the dealer Network to

the uh persons uh in in the different

Market segment as well so uh that is

more of the motive behind the the the

band realization coming in the next two

years uh so uh if you're only spending

in the commercial black type production

that would have entailed uh that we

would be having this such such a problem

as you mentioned of a demand being

stagnant for our product but since we

are increasing SKU increasing product

profile we hardly see that

happening

so our Market creation infs are

happening parall whatever new skus we

will produce uh

that happen for that

also and uh correcting myself again so

the capacity that we the utilization I

mentioned for 28 apologies that was 27

itself in 28 we shall be operating to

level 65% of the desired capacity and

not not 50% the 50% Target was for f27

and F 28 we shall be operating at 65%

levels

minimum 27 60% and 2 no no in 28 in 28

65% levels and in fi uh 27 50%

levels understood perfect yeah thanks

thanks for now thank you thank you the

next question is from the line ofar Gard

from free Investments please go ahead

yeah I my question is regarding the AA

margin since you are you are mentioning

that you will be reaching a capacity of

2 million tons in fi 27 and utilizing

around 1 million ton by F 27 and around

65% of 2 million by 28 so given the AA

margins which are currently standing at

around 7 and half% um we and you are

telling that Aida Peron would be around

uh 7,500

so can we expect the margins to hit

double digit by

then U honestly to give High first of

all and honestly to give a exact picture

of the margins is very hard because the

net average regation keeps wearing every

quarter and every year as we have seen

in the past Trend as well but it's very

safe to say that definitely we'll be

entering double digits but to give exact

number on the percentage is very hard I

can definitely give a close by number on

a v time which I mentioned

but giving exact percentage is very high

yeah but at least can we start assuming

that you will be doing around low dig

low double digit margins AA margins

three four years down the line yes you

canose
that okay and since uh in that 2 million

capacity what is your bpar estimate of

uh exports and imports since I guess

export will be a higher Aid margin

business as compared to the domestic one

no we it's nothing that weing in margins

and exports on domestic but I think

right now we are operating at 10% of the

total sales in export Market going down

the line we are reaching when we

reaching theity of 2 million t on on

that the 10% volume would be somewhere

around 5x from what we doing right now

so it's very safe for me to say that we

do the 10% bracket for down the line as

well so you don't expect any significant

jump from export as a

percentage so it can be from 10 to 12 or

15% but as you as I'm saying that the

quantum in metric time is increasing as

well so and the demand is itself get

domestic Market itself so there's no

stress about me exporting that much and

I rather interesting Market okay the

next question is on the uh whatever is

currently going on is going right for

the sector uh in terms of capex

government push and everything

so in next 3 four years since you are

bullish on the sector as well as in

obviously on the company itself uh what

can go wrong with

this so the major push that you saying

for 3 four years we are actually bu for

next three four decades and uh if you

talk about what can go wrong probably

the Machinery getting delayed by quarter

that's something that maybe I'm than

that there's nothing that I'm feeling

right

now

uh you don't foresee any risk to the

business that means apart from the

delays in getting

Machinery it's hard it's wrong to say

but in the scenario of pandemic as well

the sales picked up so it's really hard

to say that what that can happen and how

what else can

happen okay just one clarification so uh

what kind of uh s sales per ton you I

mean totally a ton

uh you you would be doing by FY 24

around 4 lakh

tons so in this year itself as I

mentioned we'll be clocking 50% growth

over H1 so if you calculate that we'll

be closing somewhere around 3.4 3.5 L

tons okay and this 1, 1310 Cod of

expansion uh this is only after 1

million this is for 1 million to 2

million tons capacity expansion right

that's right right this is nothing to do

with uh from 586 to 1 1 million that's

right okay all right thank you thank you

we'll take the next question from the

line of vikar Singh from Philip Capital

please go

ahead good evening sir sorry I got

dropped out so my question remain the

same that currently if I believe that we

have roughly 160 KT of our own coil in

550 KT production which is closer to 30%

of the capacity how this Matrix is

changing at a 1 million T and 2 million

T of Your

Capacity um so hi going down the line we

won't be expanding in the co segment and

this Still Remains to this particular

capacity itself whatever expansion that

you're doing uh in the company is

basically happening in HRC yeah there's

part of it which is happening in the

secondary Master as well but the

majority of it's happening in HRC so

that it will it won't really help us

expanding anything in this segment as a

major ra material would be HRC and not

scill that we make to the r facility

okay so just related to this when we

talking about the mega capacity and

backward integation into that we would

be putting an HRC Mill uh in there so

basically we would be Bank SLB and

subsuming the margins of HRC roll out

also in our product

mix no we won't be engaging in any of

other activities we won't be entering

the segment of making so what kind of

backward integration then you were

talking about in that one mil the mega

plan you said that there would be a

backward integration also so if you

could just give yeah yeah we didn't some

forward backward integration but forward

back integration we meant is the product

profiles that we be increasing currently

currently what I'm making is uh mainly

two products uh the commercial black

pipe and the value added G

pipe by uh doing a backward integration

of making a color sorry a

uh preo uh coil I would be adding

another SKU of uh pre galiz types into

my uh

segment the same uh PR giz coil can be

used for a sheet manufacturing uh so

yeah so uh
and certain other special speciality

products so this is the backward

empowered integration that we talking

understood sir and sir just one last

thing I don't know if any previous

participant has asked so our capacity if

you look at the industry capacity it

might go up by 3 three and a half

million tons in the next 2 to three

years do you expect the demand to catch

up in the same place or there would be a

some done period which we experience

which most of the people would

experience and how do you foresee the

new product that 1 million T which you

are expending uh as of now giving the

market situation what is the range of

the product which you are going to

introduce the ABA pattern in in those

range of

product um so answer your thing in one

simple way so right now my uh sales mix

is as such in which the government share

is only 20% and if I just sell to the

government itself right now as well I

don't have enough capacity obviously I

have maintain my EOS system such a way

that I have to serve the domestic Market

as well export Market as well and the

government as well so I have a mix of

everything and I maintain that and I

want to maintain that in future as well

but uh to answer your question simple

way like even if I just tell to the

government as well uh my capacity would

be fully utilized so the market is that

strong and that bullish and if you talk

about some reforms that are happening uh

everywhere in Maharashtra especially the

scaffoldings are used for construction

activities and right now they have the

black pipes going down the line the

government as we hear is introducing to

install galik Pikes as they increase the

life of the Pikes and anything that is

happening in warehousing is just gamiz

pipes itself as well and bigger DFC

structures which segment we had entering

and uh more than expanding the current

products we are expanding our skq use so

we'll be becoming a one step solution

right now the edge that we get which

shows in our volumes is that we are Trev

both primary and secondary Market both

of them so same dealer is the same

customer for both the products and when

will when I'll have my primary material

secondary material plus the 15 minute SQ

that I'm adding I'll become a further

onetop solution for all the

products so these all things give us

confidence in U expanding and plus the

even the export Market has opted for a

China plus one model so again that all

those things just add up and give us

most

to understood and present margin for

those future products which you wanted

to increase what is the ballpark

range for can you pleas come back again

so the galvanized products which you are

going to use including sheet and color

qu sheet what could be the present you

know pattern in those products basically

just wanted to understand the shift in

the ab butn which can happen because of

the

introduction so they are to the Pune of

9 to 11,000 and uh what we see right now

the margin profile on those items

understood sir thank you and that's all

for my all the best for thank you thank

you we'll take the next question from

the line of Angi s from RE Investments

please go

ahead hello

hi can you hear me uh yes ma'am please

proceed yes hi I first wanted to ask

what the capacity utilization be for the

quarter um so I think met we working on

a capacity utilizing of

65% and uh that's the max that one can

perform in this industry all right and I

also wanted to know about the steal

price I believe there was some margin

pressure because of the volatility in it

we see some stability in that for

now yes in this quarter we are expecting

the C PR to be stable and in fact

they're on upward statory so um they're

more over stable and going

upwards okay and uh the last question is

that we were given a Target that should

be like a 30 volume growth in the of the

financial year so are we in line with

that Ma our performance for this quarter

speaks for itself and we are well in

line for that

all right that should be it thank

you thank you we'll take the next

question from the line of vikas mster

from moonot Ventures please go

ahead I have a couple of questions

thanks for the opportunity sir why give

you so much confidence that you are

increasing your capacity by four times

and you think that you will be utilizing

65% of that capacity and even with

margins should be as high as uh

7,500 uh this is in the context that

every industry player increasing their

capacity by quite a

much um I think I just answer this

question one previous question by V but

uh to answer the question about the vaa

for t as I am adding my kit products in

second million tons which is just VAP of

11, ,000 range and if you just do simple

match of the entire V product of that um

around 11,000 and the current levels of

5,000 the levels come much High than

much higher than 7500 but still I am

maintaining a low b b figure of 700

rupees for R

time okay so another question is that I

bit perplex that you announced uh 1,300

CR kex uh 3 years before that and we are

already having land with us so we think

that capacity for DFT lines can be put

in 18 to 20 months so why three why we

are so early for the

kex if you can come back read the

question was not clear to me sir

actually we already have increased our

capacity from 6 million1 to uh 6,000

million 6,000 to 1 million T but now we

have anounced a capax to 1 to2 million t

uh but DF Alliance does not take more

than 20 months to be deployed and we

already have land for that capacity

expansion so why they so early in

raising this 300 CR

rupees no I'm still not getting a

question but I'll answer it some way

that so basically from a million tons to

uh from 2 L tons of capacity to reach a

capacity of million T we took about four

years some together so we'll be uh doing

this record-breaking uh expansion of

million tons in two years and out of

this DFT would be coming this water

itself as well and next year similarly

this time as well the second leg of DF

and uh there's not much DF coming second

part of the expansion but yes everything

is in well in line for that there more

there lot more products than DST which

is coming second million

tons I

think you

mistaken you Mok that the capacity for 1

million ter to 2 billion ter will be

solely DFT that is not going to be DFT

that is going to be as a uh

what he said uh certain forward back

migration for enhancing a current

productivity and uh a part of it

uh will be used in BF but uh the

entirety of that will not be DST it's

you're right to say that DST can be

deployed in 18 going months uh that's

why by the end of this quarter we will

be start will will be uh starting to get

a first BF line and that will be up and

running by the end of first quarter of

next year so that's the target of uh

that

Machin okay okay then uh my last

question is working capital cycle if we

are entering into valuated products then

buy f27 how much we could crash the

capital

sies um so as if you see the trend of

the company so basically we've been

expanding net to we've been expanding a

dealer Network in which the DAT days are

just between of 7 to 8 days earlier what

the company was JTL was just one plan in

daty which was solely serving the

government sector with the debt is a

little higher but now as mix of all four

plant we and majority of produc to the

dealer Network more than 50% our dataday

net average has come down significantly

so if it see the trend we've already

come down from 75 days of working

capital to around 58 56

uh already in the half early and when

you go down the line and U and this is

without uh C financing and when you go

down the line when I'm expanding my Mo

Network in the dealer Network I expect

my working capital days to come down to

the you know 40 Days by the end of next

financial year and subsequently reducing

uh them as in when as the years

proceed that's great to hear my last

question is that ke what are the skus we

are uh adding in valuated products

whether size of that will be how much

and whether they are rectangular or po

section tubes and can you explain bit on

that so I'm already in rectangular H

section and the that you mentioned the

products that I'm entering is uh colored

segments and I'll be adding P lines and

some H cfest as well so these there will

be ample number of SQ the detail list of

SQ shall be out very soon but to the

tune of the company shall be having SQ

to the tune of 4,000 post the entire

expansion of f

27 thank you thank you and congrats for

that heavy mive

cap thank you thank you we'll take the

next question from the line of Mah

talati from yellow Jersey investment

advisor please go

ahead hello

uh sir please

proceed uh yeah hi thank you for your

opportunity congratulations on a good

set of numbers so couple of questions so

if we see our trajectory which has been

on a downside for the last two to three

quarters and then new capacity which

were

heading of the new 4 lak tons around 2

lakh tons is coming in the black p which

is a commodity segment so how will this

help in further Improvement of a

button so out of the full of capacity

that be adding this year and next year

for the pipe itself so out of the to is

DFT so DFT is all black in nature but

commands V turn off around 9,000

levels so that product produces solely

included in VP um and um to answer your

question about my trajectory of V going

down every quarter so if you look at the

9 month picture as I mentioned earlier

as well it's well in line like last year

9 months my bet per T was 4700 and this

year is 4500 so as I'm expanding and

reaching my produce of glass types in

the domestic Market itself as well and

Gathering the market shares so this much

of 200 rup sitution is something the

company can follow it as well for a

quarter like for a road period um the

the companies aim to increase the BET

per ton are Val tax as we whatever we

are adding in the future is VAP so 200

rup up down quarter

doesn't understood and is valan pipe a

part of value added or commodity

product the value added product includes

giz pipes anything about which is

commanding a beta Buton of around 7,000

8,000 plus is the product which I

include in my v k

um that's the differ I don't UD any

product which is uh higher than the BET

5,000 like any product Which is higher

than 5,000 I have ballark the figure to

7500 that's where I include the

production

V okay and and uh if you could provide a

broad range of Aid P for our commodity

as well as V for our commodity and VP

prods currently like for the 9 months

f24 broader range like where are we in

terms of but

for the black pipe the beta p is around

22500 rupees range and for the gamiz

pipe which is the VP segment it's around

7500 rupees range so the Blended stands

around 4500 4600

whatever okay thank

you thank you ladies and gentlemen

kindly limit your questions to one per

participant should you have a follow-up

question please rejoin the queue thank

you we'll take the next question from

the line of anud katur from GM

financials please go

ahead hi

pendu congratulations on a good set of

numbers uh uh excuse me sir I'm sorry to

interr up your voice is feble maybe

request you to use your handset is this

better yes sir please continue hi PR

congratulations on a good set of numbers

uh can you just uh you know kind of help

in terms terms of uh for 26 and 27 how

will this uh capacity move from

tentatively you know on from 1 to 2

million and what will be the kind of

capex which uh which will be uh required

for 26

27 hi U to answer your question so it's

very hard for us to tell in which

quarter which particular machinery would

be coming not quarter on an annual basis

on an annual basis yeah so on an annual

basis by

fi25 uh we should be clocking uh we

should be reaching the capacity of

million tons plus right because now that

we have have announced second K as well

earlier the plan was the company shall

be using around 50 to 300es by f 25 for

the kex but now the changes have changed

and the scenario has changed and uh the

company should be having a capacity

close to around a million plus 2 lak T 3

lak tons and the entire kex for f26 till

f26 should be around 455 45500

cres and uh the subsequent kex of around

650 to 6es would be happening in by

27 okay and uh uh how you know by 26

what will be the capacity from 1 million

to where where should it reach what are

the

plans so in s26 the capacity should be

reaching around 1.4 1.3 l tons and like

it's again a very hard question for me

to answer because the Machinery can come

well in before as well because it's

already being ordered and orders have

been being placed as well so we

expecting the Mach should come early but

I'm just giving you a ballmark figure of

1.3 on by 26 so by 27 from 1.3 it'll

move to two exactly because it's the

very face expansion which is happening

so I'm pred the Machin should be

reaching Mach ability much before than

that but to give you ballmark figure 1.4

is the easy number to say that I'll be

having on in fi

26 okay and uh and where largely which

plant will it everything will be at

manga everything will be happening at

manga only uh the expansion from uh this

particular K is going on for reaching a

million tons two black tons is going in

rur other than that my entire capacity

addition is happening in mango so solely

mango would be a capacity of 1.4 million

tons down the line got it so 1.4 will be

at mang rest

uh the benefit that I get for manga is

that I'm just next to JW doy which is my

main Rob supplier so anything close to

my close to my ROM supplier gives a lot

of benefit also uh I'm in close

proximity to now ports from where I can

time for better pricing ort raw material

as well my coils for exporting for and

same can be done for the as well and

what would capacity at rur if 1.4 will

then rer capacity would be total of

three lak tons down the

line got it this is only for pipes apart

from that obviously we have a capacity

for c as well over there got it got it

got it take for rest I'll kind of with

you separately thanks a

lot thank you the next question is from

the line of pramesh div from Tiger

assets please go

ahead yeah hi I'm

AUD yes sir please receed yeah uh so

just wanted to know that you have given

guidance of 7500 EIT d uh at what time

this you will achieve this

7500

can you please come back

again um you have I think you have given

guidance of 7500 IID per turn uh so so

just wanted to know by when uh you will

reach this IID per turn so in fi 28 I

should be Crossing 7,000 Mark and

subsequently I should be reaching 700

mark But the later quarters of F28

itself so to be to begin the year of F28

I should be in this range but I should

be definitely ending my year with this

range of 7500 rupees okay okay um now

just wanted to know about the industry

um what's the current demand like how

many million tons are needed for the

year so the so the P segment itself is

around 13 14 million tons and which is

growing at a rapid rate of around 12 13%

every year so that's the market demand

we can talk about and other than that

you know how the government is uh

pushing its uh um Capital towards uh J

Mission and info projects and Railway

stations and airports so all these are

Target customers and where our PES would

be used so this is

a 2047 as you know India is a growing

economy so it's very we are very glad to

be part of the growing economy story and

U serving the demand of okay uh I think

you have told 13 to 14 million right

sorry for industry have told 13 to 14

million right for the year yes yes it's

which is growing 14 million was previous

year and it's going at a rate of 12 13%

every year and so where we sped the

market share how much Market ship do we

have currently and going forward um how

much it will be so we are close to

around 9% market share right now and uh

going down the line we should be

capturing more than uh 20% market

share 20% by when sir are you looking

for the
20% so we should be doubling up our

market share as we double our capacity

which will

happen in the year of two years and

after that uh uh it's a the by f25 it

should be around 15 16% and sub qu by

F28 we should be around 25% Market

Shar okay okay got it and so for coming

quarter any guidance for the realization

patter again I can give a guidance for

my sales Tage which would be similar to

what I pled this quarter itself but

average is totally depend on each prices

I really can't comment on that okay got

it sir thank you that's it from my side

thank you the next question is from the

line of arpit sha from stallion Asset

Management please go

ahead

hello please proceed yes yeah hi D hi

Prav just wanted to understand whether a

rur facility is a primary facility or a

secondary facility or is it a mix of

do so all the facilities are fible they

can either be primary or secondary both

but to talk about the riper facility as

we are one step back loated over there

we procure buets and roll our own narrow

coils over there so it is a

secondary
facility currently currently is a

secondary facility but going forward

where you're increasing the capacities

at Ru plant we'll be bringing in the DF

at R plant as well so and uh with the uh

onset of DF and certain higher D types

we'll be producing those sections in a

primary primary produce

market got it so can you help me with

volumes at right facility this

quarter this quar can you come back

again the righto facility volume this

quarter um I'll have to take the exact

number but basically the T of 65% same

it's a standard across all the

plants so that number would be what

25,000 tons this quarter what how would

that number no that would 15 to 18,000

tons 15 to 18,000 tons okay good yeah

and just want you to understand since we

have about 600,000 tons

capacity and we almost speaking at let's

say 100,000 capacity on a quarterly

basis so would DF change that the

capacity utilization from let's say from

65% to 80%

um we should be talking from 65 to 75

that's the max one can do but I rather

like to give a target of 65 because in

as well we are well in line to double

the volume from four times the volume of

what we doing right now got it and do

you by any chance do you have the mix of

the the primary and the secondary you

get this

quarter in this the secondary would be

slightly higher than

20 but but the Y volumes for let's say

primary and secondary uh let's say

primary would primary be flat or would

primary also see some growth by

basis can you come back

again yeah what what primary have grow

on a Yi

basis yeah the primary was most prant on

Ki and the incre happen majorly in

secondary got it got it thank you so

much thank you we'll take the next

question from the line of hsh Wasa from

SPI Capital Security go ahead uh yeah hi

and I

audible yes yes sir yeah so good

afternoon P and D sir uh and thank you

for the opportunity so my first question

was that like uh we have been guided for

40% of validated products for f24 but

like as of now 9 months we've reached at

30% so what kind of valid product sales

volume do we expect for Q4

like will it be equal to Commercial and

valid will be in the range of 50 to 50

or

something um so hi Ash hope you're doing

well and uh so we should be breaching

the previous VAP vacum so our highest V

produce was around 29,000 Mark uh I

think in Quarter Two or I think quarter

one I'm not really sure but uh we should

be Crossing that figures in this quarter

that's that's what the company's goal is

as

the maintenance is also over now and if

he restart so we should be somewhere in

the range of 35 36% of the total VAP

share U not exactly 40% but yeah close

to 30 40% around 36

35% okay okay thank you and if I could

just squeeze in one more question

actually I just missed out on Kix what

was the capix which you had guided for f

25 26 and

27 so the C for those years so it's

going to happen in yearly faced manner

quarterly based manner so the exact

picture is very difficult to say but to

answer your question by fi

27 everything should be installed with a

gross block of around, cres and on that

we should be clocking a top line of

10,000

cres okay okay thank you thank you uh

and all the best thank you thank you

we'll take the next question from the

line of D Pand from Pinterest Capital

please go ahead uh hello sir thank you

my question is already answered thank

you thank you we'll take the next

question from the line ofar garar from

free Investments please go ahead so this

10,000 CR Top Line you are uh seeing is

after considering the uh 65% of 2

million T right

yes okay uh another thing is that what

kind of rooc and Roe you will be

targeting since you are currently doing

upwards of

30% uh what kind of targets you have

after 3 four years after assuming all

this capacity

expansion so exactly calculations are

not out because it's really hard for me

to pin pinpoint as in when the capacity

is added every quarter but uh what brief

calculations that we have done um right

now so it all all of them should be to

the you know 27 to

32% yeah so somewhere in the 30% kind of

range you are expecting right exactly

exactly exactly which is currently what

it is right 30% exactly exactly okay

another question is that uh it would be

interesting to know from the promoters

uh so that the conversion of warrants uh

you are Target you are doing at around

270 rupees per share and by the time you

announced uh the share price was sign

around 13 14% less so I mean what gives

promoter the confidence to uh pump more

money at higher

valuation so actually to answer your

question it was much higher than 123%

the flow price that was set that time

was 210 rupees but uh the promoters are

looking at the three for valuation of

the company and uh with the same ratios

and and uh we put the money on that so

that's what the promoters were complaint

about and that's why the 60 rup premium

was um happily given by the

promoters okay so the promoters

basically expect the valuation of

company at that time they thought that

it was cheaper and the valuation should

have been higher right as no for I put

the money at the forward valuation not

at the current valuation it's a forward

valuation calculation that I've done put

money for into

that okay okay all right and just one

thing is that what kind of equity

dilution it

that 1 million to 2 million capacity

will happen at that time what kind of

equid dilution will take this I can see

that I haven't really calculated those

things oh okay all right any B number

you

have

um anything I think I think uh there's

17 grow of the company right now and

going down line growes are being added

so I really don't know how this

calculate this myself so I probably ask

my team to calculate and probably over

to you okay all right no problem thank

you thank you the next question is from

the line of rahil sha from Crown Capital

please go

ahead Mr sha I have

yes sir please proceed yes yes hi sir uh

good evening is it uh so you mentioned

you will be functioning at the new

capacity of one mil interns in F525 or

you'll be reaching at that capacity at

some point in F525 just for

clarification so I'll be reaching the

capacity marked by 75 and although the

second expansion is also undergone and

happen the same time as well so the

capacity would be standing maybe a

little slightly higher than that but uh

um the volume should be well lined of

around 60% to 1.2 million

tons so that is end of f25 or during

like the course of f dur dur dur during

okay and is it it's so fair to say

you'll be I'll be actually doing a 35%

growth in the next year itself as well

if you look at yeah yeah that's that's

what I was getting at okay and and any

outlook on the margins as well will they

again stay in the same region or you see

some expansion there as D is coming and

Solly VAP so my margins shall be

expanding uh any like any general number

one can very hard for me to number right

now once the DF is in my place and I see

how it's working I'll be in a better

picture to give the exact number but but

surely surely uh an increment over there

surely an increment we should expect to

be honest uh 15%

increment

15% okay okay got it all right thank you

and all the best thank you thank you the

next question is from the line of CA

karit K from enest analytics please go

ahead hi uh thanks for the followup uh

just to get the visibility on Revenue

can you share the uh any ballmark number

for FY 25 and f26 for Top

Line I can tell you for the volume Top

Line again it's not in my hand it's

totally in

hrc's relation so but the volume would

be again 35 35 40% growth in

f25 okay and for f26 any uh

visibility again a 35 40% growth okay

for next two to three years we are going

to to winess decent grow that me no in F

28 I'll grow to know 40%

45% okay I'm that's it for my thank you

thank you the next question is from the

line of Smith josi and individual

investor pleas please go

ahead um can you hear me yes sir please

proceed okay thank you first of all uh

congratulation to the management for the

great set of numbers and my question is

are we working in the research and

development uh creating any new product

portfolio for a future growth in

upcoming 3 to four

years so I think I been repeating this

uh several times in the call but my

entire expansion what I'm doing is just

expanding my product I'm not expanding

my current product I'm expanding my sqs

okay of product so from a th000 sqs I'll

be reaching 4,000 xqs by for 28 so the

whole scenario is just expanding

products okay that's uh that's actually

great to hear that thank you thank you

so much that's it thank you the next

question is from the line of onar Google

G from sh Investments please go ahead

yeah thanks for the followup just wanted

to confirm whether uh from 1 million to

2 million capacity expansion in that

entire thing will be value added product

which will be around 11 to 12,000 rupes

right 9 to 11,000 okay 9 to 11,000

entire thing will be value added product

yes okay and uh from current FY 24 3.4

3.3 to 3.4 million tons so you would be

doing in next four years by FY 28 that

means around uh upwards of 13 13 lakh

ton right so that is around four times

the current FY 24 right yes so this is

bare minimum 65% capacity utilization

you talking about or like you can go

higher

also yeah it's a safe number to for me

to

say okay all right thank you very

much thank

you the ladies and gentlemen that was

the last question for today I would now

like to hand the conference over to the

management for the closing remarks over

to you

sir um thanks Mama thanks everybody for

coming and um joining us for the

conference call of the company for

quarter three um I would uh like to

express my sincere appreciation to all

the shareholders employees customers and

partners your trust and education has

been instrumental in our journey th th

th so far and we're excited to embark on

the road ahead together thank you

everybody thank you members of the

management ladies and gentlemen on

behalf of noama institutional equities

that concludes this conference we thank

you for joining us and you may now

disconnect your lines thank you