Q4 25/26

May 18, 2026

Summary

FY26 results reflected a steep volume decline and weak domestic demand, partly cushioned by exports. Management expects gradual recovery under Jal Jeevan Mission 2.0, while Middle East disruption and higher input costs remain risks.

Ladies and gentlemen, good day, and welcome to the Q4 FY 2026 earnings conference call of Electrosteel Castings Limited. As a reminder, all participants' lines will remain 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 the operator by pressing * then zero on your touchtone telephone. Please note that this conference is being recorded. I will now hand the conference over to Mr. Hilal Kania from EY LLP for opening remarks. Thank you, and over to you. Thank you, Ryan. Good evening, everyone. On behalf of Electrosteel Castings Limited, I welcome you all to the company's Q4 and FY 2026 earnings phone call. To discuss the performance of the company, we have with us from the management team, Mr. Madhav Kejriwal, full-time director, Mr. Sunil Katial, full-time director and CEO, Mr. Ashutosh Agarwal, full-time director and CFO, and Mr. Gaurav Somani, general manager, finance. Before we proceed with this call, I would like to draw your attention to the fact that today's discussion may contain some forward-looking statements that are subject to various risks, uncertainties, and other factors which would be beyond management's control. We kindly request to bear in mind that there might be uncertainties while interpreting such statements. We would now start the session with opening remarks from the management team. Afterwards, we will open the floor for an interactive Q&A session. I will now hand over the conference call to Mr. Madhav Kejriwal for his opening remarks. Thank you, and over to you, sir. A very good afternoon, everyone, and thank you all for joining us today. I would like to thank all our shareholders, customers, lenders, employees, and business partners for their continued trust and support throughout the year. FY 2025/2026 has been a challenging year for the water infrastructure sector. The domestic ductile iron pipe industry operated in a relatively subdued environment. This is mainly on account of slower execution of water infrastructure projects by the states due to the delay in fund disbursement under the key government programs, mainly the Jal Jeevan Mission. Our exports business performed well during this year, helping us diversify our revenue mix and partially offsetting the softness in the domestic market. We continue to deepen our presence in international markets and remain optimistic about future export opportunities. Our sales volumes towards exports during FY 2025/2026 has increased by 7%, which was largely contributed by the Middle East. We were able to do good business in Q4. However, there will be an impact on the sales to the Middle East starting from March 2026 onwards due to the U.S.-Iran conflict. I would also like to take this opportunity to touch on our acquisition of T.I.S. Italy, which is our manufacturing wing. As per our expectations, the company has performed well with some challenges towards the end of the year. Revenue grew by 15% in the calendar year 2025 to EUR 41 million versus 2024, and EBITDA margins also improved. Our vision is to double the revenue in the next four years. We have already started the development work for valve castings in India and look forward to production soon. Despite all the challenges, we continue to manage our operations with discipline, maintaining positive cash flows and building a strong balance sheet with nominal long-term debt. The approval of the Jal Jeevan Mission 2.0 marks a significant and long-term positive development for the Indian water infrastructure sector. Budget outlay has been extended to INR 8.69 lakh crore up to December 2028. The central government has enhanced its contribution to INR 3.59 lakh crore from INR 2.08 lakh crore. With this enhanced outlay extending up to December 2028 and increased budgetary commitment from the central government, the program reaffirms the government's continued focus on providing safe drinking water connectivity across the country and strengthening water transmission and distribution infrastructure. With this positive development, we are hopeful and expect some demand to restore by early second quarter of this financial year. We believe that JJM 2.0, along with continued investments in urban infrastructure, sewage networks, irrigation, and the much-looked-forward-to river linking projects, will create substantial medium to long-term demand opportunities for the ductile iron pipe industry. I would like to reinstate and reaffirm that our integrated manufacturing operations and strong distribution network continue to provide us with strategic advantages in serving both domestic and overseas markets. As we move into the new financial year, we remain cautiously optimistic. While some near-term challenges may continue in certain regions due to the project execution timelines, overall industry visibility, global geopolitical stresses, we feel the overall industry visibility has improved meaningfully compared to earlier quarters. We expect demand momentum to strengthen gradually and as execution under JJM 2.0 accelerates and government spending gains pace. With this, I would like to now request Mr. Ashutosh Agarwal, our Whole-time Director and CFO, to take you through the operational and financial performance for the year in greater detail. Thank you once again. Thank you, Madhav. Good afternoon, everybody. I will take you through some financial details of the company for the fourth quarter as well as for the full financial year. Sales volume of DI pipes, fittings, and CI pipes during the fourth quarter stood to INR 1.48 lakh tons, down by 21% year-on-year basis. In FY 2025-2026 full year, the sales volume was 5.84 lakh tons, 25% decline from the previous year, which thus impacted the overall financial performance of the company. The decline in the volume was primarily due to slowdown in the domestic market. However, export pipe volume grew by 7% in FY 2025-2026, partially offsetting the weakness in domestic markets and providing support to overall business performance. As a standalone basis, gross debt as on March 31, 2026 stood to INR 1,202 crores, which decreased by INR 598 crores from the previous year. The long-term debt stood to INR 352 crores, and short-term debt stood to INR 464 crores. I will now take you to the consolidated result for FY 2025-2026 and full year FY 2025-2026. Total income stood to INR 1,530 crores in the fourth quarter and INR 6,133 crores for the full year. Sales were lower year-on-year primarily due to reduction in volume in domestic market. EBITDA, including other income for the fourth quarter, stood to INR 99.3 crores with a EBITDA margin of 6.5%. For the full year, EBITDA stood to INR 523.6 crores with an EBITDA margin of 9.4%. PAT for the fourth quarter stood to INR 16 crores and for the full year, INR 15.5 crores. Now moving to standalone results for the fourth quarter as well as for the full year. Total income for the fourth quarter stood to INR 1,228 crores, lower year-on-year basis by 23.3%. For the full year, it stood to INR 5,228 crores due to lower sales volume. EBITDA, including other income for the fourth quarter, stood to INR 57 crores with EBITDA margin of 4.7%, and for the full year, approximately INR 900 crores with EBITDA margin of 9.6%. PAT for the quarter was a loss of INR 10.7 crores. While the full year, it stood to INR 1,031.3 crores. In this position, board has decided to reduce the dividend from 140% to 90%, subject to shareholders' approval. While FY 2025-2026 remains challenging due to softer domestic demand, we believe that long-term outlook for the water infrastructure sector continues to remain strong. With this, now I am opening the floor for the question and answer session. Thank you. Thank you. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We take the first question from the line of Ritesh Ramchandani from Discovery Capital. Please go ahead. Hi, sir. Just wanted to understand, a few years ago, we had read a number of reports about how the opportunity in tap water and pipe for many, many years was going to be extremely small, or was going to be extremely strong and the opportunity was extremely high. Over the last year or so, we have seen the demand fall off quite materially and supply also increased materially. Is this a new and normal? I just want to understand what has changed in this. The reports of certain issues around the way Jal Jeevan Mission has been implemented so far, and owing to that, the scrutiny and the complete blocking off of central funds over the last one and a half years is the main cause for the sudden drop in the demand. JJM constituted 50%-60% of the industry's total demand. We never expected that due to some irregularities, we will be in a position where there will be such a strong and such a sudden handbrake from the spending on that front. This is the major reason. In my opinion, Most definitely this is not the new normal, this is the rock bottom. At the time of the last two, last year and the year before that, we were quite certain that is also not a normal, that is the upper end of it. Here we are at the lower end. I am fairly certain that we will go back to our older days of earning a 15%, 16% EBITDA level, and maybe the volume growth will be a little more, I would say, less jumped and more slow. Definitely we are not at all thinking that the industry running at 50% capacity is the new normal. Ritesh, does that answer your questions? Yeah. Thank you. We take the next question from the line of Pinaki Banerjee from AUM Capital Private Limited. Please go ahead. Good afternoon, sir. Thanks for the opportunity. Sir, you have mentioned that Jal Jeevan Mission 2.0, where you are expecting a sizable chunk of business. But actually, you have also mentioned that this Jal Jeevan Mission 1 actually, where there was a slowdown in government awarding the projects and blocking of funds. How optimistic are you in this segment, first? Sir, all the scrutiny that had to be done has been done, and after that, a revitalized Jal Jeevan under the name of Jal Jeevan 2 has been taken out by the government. The cabinet has approved it. States are now being allocated funds. There is a very strict regulatory prerequisite that is needed from the states for the disbursement of the funds to take place. It is moving towards it being a more foolproof funding mechanism. The fact that the central government is spending so much time and effort towards this exercise, it is a clear indicator that it is still a part of their priority, else they would have dropped it by now. I am very certain that being the pet project of honorable PM, this is going to be something that he is going to see to the very end. Okay. Okay. Sir, my next question is, in this year, actually, though the exports were a cushion to you to report a steady number, but for now, due to this Middle East crisis, how are you coping up or what will be your strategy going forward? Sir, the Middle East impact is definitely going to have a somewhat downward pressure. Middle East contributed to approximately 50% of our exports. Saying that, I think with the improvement in the domestic market starting quarter 2, quarter end, say mid-quarter 2, there will be some improvement from that aspect. For the remainder of it, I think a little bit of product diversification that we have done with valves will help us create some cushioning. Okay. Sir, just one last question I will just put in. Sir, in the balance sheet, you are showing as investments INR 531 crore. The current investments, are they liquid in nature? Almost liquid in nature. Okay. Sir, considering that cash and bank balance and these investments, they add up to around INR 800 crore. How do you plan to deploy this fund? We have declared that we are also setting up a paint plant. Okay. Some money will be invested there. Okay. Then we will be earning interest from that. Okay. Some portion we will use to set up a valve plant in India. Okay. Sir, that is all from my end, and thank you and all the best for the future. Thank you. Thank you. Participants, a reminder. If you wish to ask a question, please press star and one. We take the next question from the line of Pujan Shah from Molecule Ventures. Please go ahead. Hi, sir. Thanks for the opportunity. Am I audible? Yeah. Yes. Okay. Perfect. Sir, my first question would be, just want to understand, in our PPT, we have mentioned that there is a fund release from government end of INR 15,060 crore. Sir, just want to understand, if you can spell out how much money is still pending from government end to be released or need to be released, and how this situation will pan out, like in Q2, what are we seeing, is the release of funds gradually, or we have been seeing a new tender is being opening up, which will create a new opportunity for the company as well as the investors? Sir, the government budget for this particular financial year under JJM is INR 67,670 crores. Just a correction, sir. The disbursement that was done last year was not INR 15,000 crores, was INR 1,500 crores because the cabinet approval came at the very end of the financial year. Nevertheless, this is a fund that has been released after many months. It was a few drops of water on a very dry soil. Saying that, I think, the government of West Bengal, post the election, announced some INR 2,700 crores, and as such, there has been MOUs being signed with various states for disbursement of money. I think quarter 2 onwards, as I said, the jumps will not be very sudden, but it will be a steady increment of demand increasing over three to six months. That will help us position ourselves back to strength. I am fairly certain that quarter 3, quarter 4 of this financial year, you will see us slowly getting back into the saddle. Okay. Just want to continue with the same question. Obviously, I understand the situation as a fund flow has not been released. So the new activity might not be happening up. But just want to understand, can we see the new tenders being flowing around right now? Or it is very early to say due to all the situations where you have already halted all the operations which EPC need to make? No, sir, inquiries from customers have started coming in now. Okay. But it is on a meaningful way or it is just a beginning of a very nascent stage? It is somewhere in the middle of both, sir. It is not nascent for sure. There is serious interest from our customers for supplies even within this quarter. So it is not that it is nascent, but at the same time, it is not close to its fullest potential. So it is somewhere in the middle of the two. Got it, sir. As a Jal Jeevan Mission might end in December 2028. So I understand that there might be delay in terms of execution. But if just want to understand on a broader aspects, then what are the demand drivers will be there forward 2028 that will inch up our growth and growth trajectory towards what we own a sustainable manner? Sir, post 2028, the two largest drivers for demand for us will be irrigation and something linked to it, which in my opinion will give us a good impetus is the river linking project. Along with that, demand from the urban sectors and the rising pressure for increasing infrastructure in tier 2, tier 3 cities is also seeming to contribute overall, although it is not something as big as a Jal Jeevan Mission, but it definitely has its own contribution. These are going to be the main drivers for DI pipes. For us at Electrosteel, sir, our recent diversification into valves, which is a water specific product, but it is not specific to ductile iron as a material. It is used regardless of what pipe material is being utilized. Our other investment diversification that we are looking at, sir, that paints is going to help us cushion ourselves against any undulation as we have faced over the last one and a half years. Got it, sir. Sir, can you just give us a brief idea on how much money receivables it has been stuck in fund flow from Jal Jeevan and how much it has been released till date? There's no significant funds stuck for us because we are supplying to EPC players. So our collections are mostly on time. Our debtors, what you see are regular debtors. So it's not any significant overdue one. Got it. My last question would be on the coal block. Just want to get an update on the coal block amount. Can you just give a specification of what does that mean? Soft cost for the one particular asset which is a shaft and incline is yet to be announced by the ministry. The hard costs have been announced and they are roughly similar to what our estimates were. It's a long run process, sir. It will take time, but I'm also, again, certain that our numbers are strong. These things take time, but they happen eventually. Got it, sir. Thank you so much, sir, and all the best. Thank you. Thank you. We take the next question from the line of Rajesh Agarwal from Moneyold. Please go ahead. Hello. Sir, what is our current order book? Whether it is 5 months, 6 months, 9 months? First question. Second, sir, what is the difference between Jal Jeevan 1 and 2? What difference it makes to us? The third question is, the amount of money which is getting released now, are they resulting in inquiring on new fresh orders? Because the pending order itself is huge. These are the three questions. Our order book at the moment is between 4 to 5 months. Okay. When you say new orders, all the tenders that were to be released under Jal Jeevan Mission have already been released. Of course, there are always some adjustments to those tenders, but a lot of those tenders are yet to be allocated to EPC contractors and then in turn coming to us. While that is the case, as we have 4, 5 months of order book, other manufacturers have 4, 5 months of order books. Okay. On top of that, contractors have tenders which they have won for which they have not yet placed the order. Okay. These three are major drivers. Let's put aside the orders that we have already booked. Okay. Orders with contractors that are yet to be booked and tenders for which contractors are yet to be- Allotted allocated. These two are the main driving forces under Jal Jeevan. Okay. Roughly, what is the quantum of orders in terms of volumes, metric tons? The tender, the old one, everything. I would say around 3.5 million tons. Okay. So the chances of us backing, what is our cycle of backing the orders? We have around 20%-25% of the domestic market. 25%. Okay. Sir, whenever the order comes and the plant runs in capacity, the EBITDA margins will come back immediately to 10%-15% EBITDA margins? Sir, immediately, as I said, it will be a steady growth rate. Okay. But I am fairly certain that we will get to a 15% EBITDA margin. Is there any pressure from the cost side? We are facing some increments going to the war. I will allow Mr. Katial to give a more elaborate answer on this, please. Cost pressure due to war. On the cost front, principally, the freight has gone up. That is one major component, and we have a major input in the form of coking coal, which comes from overseas. That is one area where the cost is getting substantially impacted. Now, gradually, the energy cost in India also has already gone up by almost 70%-80%. Okay. Added to that, as a third phase now, the government is also raising for general transport also, the diesel and petrol prices are going up. Okay. That also will impact. Now, these three factors are actually causing a bit of a dislocation of the whole thing. Second is that, see, the movement of ships are also getting delayed, which is also creating a type of a problem because the whole cycle of movements is disturbed. These are all having an adverse impact on the cost. Sir, going forward, will we be able to pass on the cost? Disruption is a different thing. That is due to the war. The cost can be passed on or no? It has its slightly delayed onset in the sense that the cost goes up today because we will have existing order book. For the increased sales price to reflect in our performance, it takes around a quarter. Okay. Post that, you will see that there is changes or there is an input of the cost into the selling price. The last question, what was the component of exports in this quarter, current ended quarter? Component in the sense, sir? The total export on the volumes. What was the export in terms of value? Suppose we did INR 15 billion turnover at this time, what was the export orders? Exports contributed for this quarter around 23% of our revenue. Okay. Going forward, it can be the same here for exports? With the expectation of the Indian market picking up and with Middle East being a little muted, we are seeing that this will come down to probably 17%-18%. 17%-18%. Okay. Thank you, sir. Thank you for answering. Thank you. Thank you. Participants who wish to ask a question, please press star and one. We take the next question from the line of Saket Kapoor from Kapoor & Company. Please go ahead. Yeah. Namaskar, sir. Hope I'm audible. Yes, sir. Yeah. Sir, taking into account our deliverables for the current financial year, what is the likelihood for us for this current year, not factoring in what Madhav Kejriwal was mentioning in terms of Q3 and Q4? Make uptick In normal course of business with the type of sentiment that currently is, what should be the deliverables for the year and what should be our EBITDA margin trajectory? Sir, can you elaborate a little bit on what you mean by deliverables? Deliverable means, sir, scheduled DI pipe fittings delivery for this financial year. Sir, we are expecting that we will have a dispatch of around 7 lakh tons, approximately this financial year. This is including our export numbers. In terms of our EBITDA margins, I think considering a slower Q1, Q2, and a slightly better Q3, Q4, approximately 13%-14% is achievable. On a consolidated basis for the year? Yes. Okay. Sir, when we mention 7 lakh, it is only about the pipe or pipe fittings and everything altogether? No, this is just our pipes. Okay. So our number was 5 lakh 84 thousand for pipe fittings. So if you could give the pipe number- It will be around 7.4 fits. Including or everything will be 7.4? Yes. Okay. Sir, then about the TIS acquisition, what is the current order book and what steps are we taking exactly, sir? What kind of revenue profile will open up in times to come? I think so with product development, what are we aiming to achieve from this investment? Sir, this financial year will be a bit more stable than a growth-based trajectory because of the issues around the supply chain. Ours is also a business which has a lot of components coming in from many different parts of the world. So this pressure on freight costs is going to have a bit of impact on our overall business. But our projections is that we will double up our revenue in the next four years. So that is approximately a 20% growth rate. That's what we are eyeing, and this will be contributed through India, the Middle East, and Europe. Okay. Sir, just two small points. On the revenue profile, how should TIS work? The current money should be at the optimum level. If you could just give in INR terms, how should this entity perform? Last year they had a revenue, if you consider the calendar year, was approximately INR 400 crores. We are seeing that this financial year, instead of a 20% growth rate, we should probably hit a 14%, 15% growth rate. So I think around INR 450 crores. The last entire year's revenue is not reflected in our books because the company was acquired in August. So what you see in the books of accounts is a half year situation, and they were running on a calendar year basis. If you consider this calendar year, I think they should be at around INR 440, INR 450 crores. And margin profile? 14%-15%. Just to end the discussion here, sir, when you mention 7 lakh pipes, you are factoring it that the Jal Jeevan and the all-skin will be gaining traction from Q3 onwards. That is what the hypothesis is currently. Steady traction, sir. Not credit to the metal traction. We are considering, as we said, we are being cautiously optimistic, not overtly optimistic. Right. On the large parties, on the promoters buying, sir, I think so the promoters have endorsed their faith by upping their stake from the open market acquisition. For your minority shareholder, what should they anticipate? Are we done with our exercise, or we can look forward for the activity, or you still find value to invest more? Sir, at this moment, we invested what we were capable of investing from the promoter side. Of course, we also have to look at our personal financial capabilities more than just the confidence of the company. I think going forward, definitely if we could, we would invest further. Okay, sir. It was the lower tonnages only that led to the standalone losses for this quarter, or the lesser absorption of fixed costs, or what could be the main reason for us posting, not being able to cover our finance costs and other aspects and reporting losses of 7 crores on a PBT level? Sir, loss of tonnage. There is an exceptional cost of around 38, 40 crores on account of the new labour rules. That, and definitely the margins being squeezed due to a dearth of demand. These are the three major factors due to which we booked the loss. The realization for pipes are also down, sir. The order booking which we have right now, therein are the pipes realization also lower because of overcapacity in the system and lesser demands are from the lesser amount of pickup of stock from the EPC players? Yes, sir. I think as similar to what is reflected by a lower EBITDA margin, our cost to realization data has reduced. That has also caused a downward pressure on the profitability. So one thing is conclude that even for Q1, sir, this is the trend because things have not changed as of now. We are already half of what, 45 days into the quarter. So there are no further, any change in the profile for the company's operation, operating and financial performance. Nothing substantial, sir. Okay, sir. Thank you. Thank you. Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and one. We take the next question from the line of Rajesh Bhandari from Nakoda Engineers. Please go ahead. Good afternoon, sir. Good afternoon. Hello. Yeah. Can you hear me, sir? Very well, sir. Yeah. Sir, as you said, that the order book is with us for four to five months, so after that we expect orders from the contractor. Do contractors have the orders? Yes, sir. Contractors have substantial orders, plus there are tenders for which the contractors have not yet been selected. Okay. Both of these factors are there. It is not the case that after 4-5 months, you will have a problem with the order. No, sir. I am optimistic that after 4-5 months, things will get better, not worse. Better. Okay. Second, as you said, sir, the budget is INR 8.69 which is the total budget out of which INR 3.59 is central share and INR 5.1 is state share. Right, sir. This budget sir, is it only for Jal Jeevan Mission or does it include irrigation system, river linking, urban infra, sewage system, everything? This is just Jal Jeevan Mission, sir. Okay. This which will end on 28th sir, Jal Jeevan Mission, December 28th. After that, no such orders will come from there. Then we are dependent only on these river linking, irrigation system and all that. Sir, it's not that it will go away. Today, rural demand, which is under Jal Jeevan, is giving us 50%-60% of the total demand. Mm-hmm. Okay. I am fairly certain that even after these investments, it will go down to probably half of what it is today. It will still contribute to 25% of the demand. It cannot be that it will completely go away because even when we started, Yes there were X number of households which were having water, but those pipelines are old. They need replacement. Yes. There is always some repair work going on. The 19 crore number that was there was based on an earlier population consensus. I am sure they will find that they will need to keep investing, albeit in a smaller scale and more state level than central. Yes. Some investments will keep coming up. Haryana has achieved- Yes. After December 28 also, we will have Jal Jeevan Mission to some extent. Sir, I'll give you an example. Haryana as a state has achieved 100% tap connectivity, but they still have tenders coming up in rural. Okay. It's not that it will go away. It might not be called Jal Jeevan Mission, but rural India's demand for pipes will continue. Mm-hmm. Now what rate we can expect, sir, in 2026, 2027, how much of our manufacturing we can expect? Approximately seven, sir. Seven. But our total capacity is 9 lakh tonnes, sir. Between 8 and a half to 9. Right. Between 8 and a half to 9. Sir, when can we achieve our past glory or will we not be able to achieve it in the next few years? Sir, past glory as at that time when we talked that the 19%-20% EBITDA margin coming in this quarter is an optimistic situation. Yes. Similarly, now we are in a pessimistic situation. So according to me, 15%-16% versus 14%, at this level we will stabilize in the next year, next financial year onwards. This year our EBITDA margin will definitely be 13%-14%, 12%-14%. The first quarter will be a little slower. Yes. But I think a 14% to 16% bandwidth as opposed to 17%, 18% that we were hitting at the optimistic level is doable, sir, because even before JJM and pre-COVID, the Indian ductile iron pipe industry had an average EBITDA level of 15%. That is pretty much doable. आपने दो साल पहले बोला था कि हमने ऐसा कभी best time देखा ही नहीं है। इतना बढ़िया time चल रहा है अभी। तो वह वाली situation वापस कब expect कर सकते हैं sir? वह तो cyclic बहुत ज्यादा है sir. जैसे steel industry में भी दसियों साल में एक बार ऐसा कुछ opportunity आता है। वैसे हमारा business भी है। उस level का optimism is difficult to predict. difficult. I can give more of a stable size at where we can go. I was quite sure that is a glory years situation. It's not that it will not return, but it's difficult to pinpoint exactly [Foreign language]. जी, समझ रहा हूँ मैं। अभी जैसे लेकिन दो-तीन quarters में results काफी गड़बड़ रहे। तो better results, थोड़ा अच्छा profit जैसे last past में दिए हैं आपने, उस type का profit कब expect कर सकते हैं sir? Sir, stable profits [Foreign language] level [Foreign language] operations next financial year [Foreign language] expect [Foreign language]. We can expect from that time. Of course. European countries. हाँ sir. This is all, मतलब आज का geopolitical situation जो है. हाँ, समझ रहा हूँ। तो अपने volume में इनमें कितना रहता है sir contribution pipes? 20 से 22% अपना sales sir export में रहता है। अच्छा 20 से 22% का। और JSW से पैसा मिला sir? Sir, कुछ amount हमको release हुआ है। जी। एक particular asset के लिए उसका hard cost release हुआ है, और जो release हुआ है वह close to our numbers था. Slightly lesser था, marginally lesser था. लेकिन वह तो sir साल भर पहले मिल गया था अपने को। नहीं, उसके बाद एक और disbursement हुआ sir. अच्छा। धीरे-धीरे disbursements हो रहे हैं and it will take time sir. This is a long drawn process. There is a hard cost, soft cost element to all the assets that are there. जी। We will go through that process slowly and steadily. जी। JSW is also facing some delays in their हाँ, correct. Approvals for the mining. So they are also how things move sir, in this regard. मतलब in second half of 2021 and further, we can expect that same Electrosteel Castings as in the past. I am very hopeful sir. जी, बस वही तो। They are also investing and diversifying in different products, so that should help give us some- Different product like? Valve तो किया ही है, sir। हाँ, valve तो किया, sir। वह तो अपने को साल भर से ऊपर हो गया। नहीं sir, August में company आई है हमारे पास। अच्छा, ok. नौ महीना। तो इसमें अभी अपन expect कर सकते हैं sir कि India में अच्छा business मिलेगा। Definitely sir. [Foreign language] sir, Calcutta [Foreign language] valve [Foreign language] company. They are also into the same kind of valves. Washington pump. Not entirely, sir. अच्छा। In India, do we have kind of a monopoly? No, I wouldn't say we have a monopoly. There are other companies also, international companies that are there in India. But of course, they don't have the team strength and the reach. That we do with our customer base. उन लोगों का खाली valve होगा। आपके पास तो valve भी है, pipe भी है, सब कुछ है। हाँ जी, sir. That will help us in getting our turnover also. हाँ जी। Because valves will have a much better profitability margins. ठीक है sir. All the best to you sir. Thank you. All the best to you sir. Thank you. Thank you. Participants who wish to ask the question please press star and one. We take the next question from the line of Ankit Puri, an individual investor. Please go ahead. Hi, good evening Madhavji. Very good evening. I have got 2 questions. One is, given the significant exposure to government infrastructure and water projects, does the recent change in state governments have any bearing on the project execution, order inflows, payment cycles, approvals or policy continuity? Have you observed any slowdown or reprioritization in decision making at the state level? Well, 2 major states where there has been a, I would say 3 states in terms of their contribution to our business, Kerala, Tamil Nadu and Bengal. These states, of course, there is a small slowdown during the election period and due to the change, there will be maybe a month or so of slowdown. But at a policy level, I don't see the new governments not wanting to pay attention to JJM. Bengal was very quick to announce disbursement. In fact, from the center, they were disbursed money or allocated money rather. Sorry, my apologies. Allocated money, not disbursed. So I find that whatever slowdown is there is only administrative in nature, not policy or mindset in nature. All right. The second question I would like to request your views on. We are expecting a severe drought condition this year as predicted by many, including IMD. Right. You foresee any reallocation of state or central government spending away from existing infrastructure programs towards emergency relief measures, or could that affect project execution timelines or order inflows as well? The bigger threat at the moment is the energy security of the nation. Drought, of course, has a major impact as well, considering that India is still very largely dependent on its agriculture industry. But it seems the top of the town is the energy sector, and there is less being thought of in regard to the super El Niño effect that we are expecting. Saying that, at one end, it might cause certain delays, although very temporary in nature, maybe a quarter or two, but it will also give us impetus to get the government to focus on understanding that the time of the old ways of irrigation are over, and more and more infrastructure towards piped irrigation needs to be put in place. Piped irrigation is, to a very large extent, armored against these major issues of climate uncertainty. All right. If the Iran conflict escalates into a prolonged energy disruption, do you expect the impact to be primarily on the input cost, supply chain continuity exports or demand disruption as well? In my opinion, there will be an impact on both demand and on supply chain and input, but the contribution of the disruption from demand side will be lesser. There will be a higher impact of cost and supply chain. But definitely all three will be impacted, there is no doubt about that. All right. Lastly, you had earlier indicated plans to expand into industrial paints and protective coatings. Could you elaborate on the business roadmap here, including your target industry? Mr. Pyar is to elaborate for you on that front, please. Thank you. Yeah. On the paint front, in fact, we are getting into industrial paint segment. The plan is that we have principally driven a 5-year roadmap by which we will go to a business revenue top line of around INR 600 crore by that time. All right. What is the initial outlay? INR 200 crore is expected to be spent over how much period? Yeah. This is expected to be spent over a span of within 2 years, maybe 1 and a half year roughly. When do we see the positive effects being reflected in the bottom line? Bottom line, from financial year 2028, 2029, we will see a positive impact of that. All right, sir. That will be all from my side. Thank you very much. All the best to you all. Welcome. Thank you. Participants who wish to ask a question, please press star and one. We take the next question from the line of Hari Kumar, an individual investor. Please go ahead. Very good evening, sir. Am I audible? Yes, please. Good evening. Yeah. Regarding this Ken Betwa project, sir, how much share would be the pipeline work of that INR 40,000 crore, sir? Sorry, sir, could you repeat that? About this Ken Betwa project out of this INR 40,000 crore, how much of that share could be pipeline work, sir? Around 10%-15%, please. Okay. This feasibility reports, like DPRs, which are being completed for river projects, when can you expect them to be at a suitable stage, sir? Sir, every project is in a different stage. As you mentioned, Ken Betwa is in the furthermost advanced stage. Then there is the river link between Rajasthan and MP. There are some works going on within Tamil Nadu and within Maharashtra as well. Each project will have its own timelines. It's difficult to say that as it's not one project really. It's all under the garb of river link, but there are many, multiple, and each project very mega-sized, being executed at different timelines. I feel that river link as an overall subject will take our country around probably 5-7 years to execute. Okay. Is it a possibility that they would be through pipes and not open canals, sir? Up to a certain mark, it has to be done through open canals, sir, because you cannot use pipes to move that level of water. The main vein that will be used to connect the rivers has to be open canal. But all the subsidiary pipelines that will come out, all the routes that will come out from that main vein, those will all be in pipes. And they will contribute to irrigation, to rural water supply, and in some cases, even urban water supply. Okay. That's all from my side. Thank you very much. Thank you very much. Thank you. We take the next question from the line of Rajesh Agarwal from Moneyold. Please go ahead. Sir, my question is on the Jal Jeevan Mission, which has been a there is a condition case, the last mile water connectivity has to come on the tap, only then the payments will be released. So then the EPC contractors will get less of a cycle of money and that in turn will result in our payment also getting delayed? I wouldn't say that will result in the payment getting delayed. But as I mentioned, the growth for demand, which was more like a floodgate release during the previous years Okay that will become a bit more steady. There will be stability in the demand, which has a positive aspect to it also, where there's no ups and downs. It's not that there will be a major delay on the payment because Okay even the EPC contractors, through the last few years of experience of a massive upswing and a massive downswing Okay have started operating in a more stable way rather than being extremely opportunistic. So working capital cycle may get elongated, no? Do you feel? I don't foresee that happening, sir, because Sure we are hedged across multiple states, and it is not just Jal Jeevan Mission. Okay. Even with Jal Jeevan Mission, it is still 35%-40% or even lesser, in fact. No, actually 35%-40% of our contribution to demand today for Electrosteel specifically. So within that, even if it goes up by 10%, it is not so much of a difference really. Last question, what will be the maintenance CapEx in 2026-2027? CapEx in maintenance. Around 25-30 crore. That will be maintenance CapEx. Yes. Okay. No new CapEx? Well, so for the paint plant and for our valve plant in India. Okay Which are both in design and development stage. Okay. These two will have a CapEx, but of course, we have not determined exactly how much will be required this financial year, how much will flow into the next financial year. Okay The plants are still in design stage. Okay. This will take some time. In two years, it can be how much, if you can quantify that, INR 200 or INR 250 crore? Between two hundred to two fifty crores. INR 250 crore. Okay. Thank you. Thank you, sir. Thank you. Thank you very much. Ladies and gentlemen, due to time constraint, we take that as the last question and we conclude the question and answer session. I now hand the conference over to the management from Electrosteel Castings Limited for closing comments. Thank you everyone for joining us today, and thank you for your continued trust in our company. We remain committed to driving sustainable growth, strengthening our balance sheet, and creating long-term value add for all our shareholders. We appreciate your support, and we look forward to updating you on our progress in the coming quarters. Thank you. On behalf of Electrosteel Castings Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.