Q1 24/25

Aug 1, 2024

Summary

Consolidated revenue rose 18.9% and EBITDA nearly doubled, supported by domestic DI pipe demand and operating efficiencies. FY25 DI pipe sales are guided at ~8.5 lakh tonnes, with capacity expansion aimed at 1 million tonnes by FY26.

Good afternoon, ladies and gentlemen. Good day, and welcome to the Q1 FY 2025 earnings conference call of Electrosteel Castings Limited. 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. Ma'am, can you come here one minute. Should you need assistance during the conference call, please signal an operator by pressing star and zero, or the touch tone four. I now hand over the conference to Vikash Verma from EY LLP. Hello. Ma'am, can you come here. Yes. Hello. Hello. There is some noise, I think. Yeah, just hold on. Yeah. Hello. Heeral, can you hear me. Yes, I can hear you. Ma'am, your voice. Can you mute your line, please. Thank you. Ladies and gentlemen, now I hand the conference over to Mr. Vikash Verma from EY LLP. Mr. Vikash, please go ahead. Thank you. Good afternoon, everyone. On behalf of Electrosteel Castings Limited, I welcome you all to the company's Quarter 1 FY 2025 earnings conference call. To discuss the performance of the company and to answer the questions, we have with us from the management team, Mrs. Radha Kejriwal Agarwal, whole-time director, Mr. Madhav Kejriwal, whole-time director, Mr. Sunil Katial, whole-time director and CEO, Mr. Ashutosh Agarwal, whole-time director and chief financial officer, 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 forward-looking statements that are subject to various risks, uncertainties, and other factors which will be beyond management control. We kindly request that you bear in mind there may be uncertainties when interpreting such statements. Please note that this conference is being recorded. We will 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 over to Mr. Sunil Katial, whole-time director and CEO, for his opening remarks. Thank you, and over to you, sir. Thank you, Mr. Vikash Verma. A very good afternoon to all, and a warm welcome to Electrosteel Castings Q1 FY 2025 earnings con call. The company has been able to sustain its growth trajectory in the first quarter of FY 2025, achieving a notable 18.9% year-on-year increase in consolidated revenue to INR 2,036 crores, driven by strong demand of DI pipes and fittings in water infrastructure projects in the domestic markets. The EBITDA of the company has surged remarkably to nearly 102% year-on-year basis to INR 378 crores in this quarter. This is on account of company's consistent focus on maintaining operational excellence and improving cost efficiency through economies of scale and other initiatives. We have repaid INR 30 crores of debt during Q1 FY 2025, resulting into a net debt-to-equity of 0.33 times during the quarter, thereby signifying the strength of our balance sheet. The company's DI pipe sales volume stood at 1.93 lakh tonnes in Q1 FY 2025. Export contributed 12% of this volume. Electrosteel Castings remains the preferred supplier of choice for major water infrastructure projects, thanks to our deep domain knowhow, both in domestic and export market, and the resultant brand image. The ongoing CapEx initiatives are progressively moving as planned to cater the growth demand of DI pipes. Thanks to the government's Jal Jeevan Mission and AMRUT 2.0 scheme, we plan to expand our production capacity to one million tonne by the FY 2026 end. We are also in the process of acquiring land in Odisha for the upcoming greenfield DI pipe and fitting project. The project scale is currently under final stages on the drawing board. We will update the same to all of you and our analyst friends through the exchange filings. Thus, through judiciously planned expansion and execution process, Electrosteel Castings will continue to maintain its leadership stance in the domestic DI pipes and fittings industry, as well as hold its flag high in the export market. I would now like to hand over the floor to my colleague, Mr. Ashutosh Agarwal, the Whole-time Director and CFO, for taking you through the financial highlights. Thank you, Katialji. Good afternoon and a warm welcome to all the investors presenting Electrosteel Castings Q1 2025 earning call. First of all, I would like to brief you about the consolidated results of Q1 2025. The total income increased by 18.9% year-on-year to INR 2,036 crores due to robust domestic demand. EBITDA surged by approximately 102% year-on-year to INR 378 crores, and the EBITDA margin expanded by 761 bps year-on-year to 18.5%, led by the economy of scale. PAT surged by 202% year-on-year to INR 226 crores. PAT margin expanded by 623 bps year-on-year to 11.1% during the quarter. Now about the standalone results for the Q1. The company sold 192,000 tons of DI pipes in this quarter. Total earned income grew by 21% year-on-year to INR 1,851 crores. EBITDA grew by approximately 92% year-on-year to INR 354 crores, and EBITDA margin expanded by 705 bps year-on-year to 19.1%, led by economy of scale coupled with operational excellencies. PAT surged by 161% year-on-year to INR 212 crores, and the PAT margin expanded by 615 bps year-on-year to 11.5% during this quarter. About the CapEx plan, highlights of updates on our CapEx. The company ongoing CapEx of approximately INR 700 crores is in progress and as per schedule. Company has spent nearly INR 410 crores till Q1 FY 2025 and targets to enhance its overall DI pipe manufacturing capacity to 1 million tons in the year 2026. Now I shall open the floor for the question and answer session. Thank you very much. Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and then one on your touchtone phone. If you wish to withdraw yourself from the question queue, you may press star and then two. Participants are requested to mute handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question is from the line of Mr. Saket Kapoor from Kapoor & Company. Please go ahead. Yeah. Your voice is echoing, sir. Sir, yeah, your voice is echoing, sir. Right now? Hello? Yes. Yes, you are clear now. Yeah. Please go ahead. No, ma'am, I think there's a problem from your side. Still there's an echo. Yeah, the echo is from your side, not from the client. No. Okay. I will just put my question. Thank you, sir, for the opportunity. Hello? Yes, ma'am. Ma'am, sorry, but still there is an echo. Just hold on. Hello. Is the voice okay now? Yes, I think you are audible, ma'am, and there is no echo also. Yeah. Mr. Saket, please go ahead. Yeah, am I audible now, sir? Yes. He is loud and clear. I am so sorry about that. Not an issue. It was a telecom issue, so we hope that gets corrected with the CapEx on that segment also. Sir, firstly, about the CapEx part which Ashutosh Ji articulated about INR 411 crores. So this CapEx, in which period has it been spent, and how much more is left to be spent for this financial year? Can I answer this question? Yes, sir. Last quarter, we have spent INR 390 crores, and in this quarter, we have spent INR 20 crores. Okay. What will be the capacity augmentation, sir, at the end of the year? It will be 4.5 million tons, and a further 1 million tons will be in next calendar year in 2026. This is for the Srikalahasthi plant. Srikalahasthi plant. Yes. For the exit of FY 2025, we will be having 550 for the south unit. What will be the capacity for our eastern unit? Approximately 350. 350. Okay. 9 lakh that you have given, that will be at the exit of FY 2025. Correct. Okay. We will get the benefit of the enhanced 1 lakh capacity in phase manner for H2, or will that benefit get circulated to the next year? No, in fact, these facilities are expected to be commissioned by the end of third quarter. Part of the benefit definitely will start accruing from fourth quarter onwards. Okay, sir. When we look at the EBITDA number and also the raw material environment currently, this EBITDA trajectory looks to be on a steady set of track, and these numbers look sustainable now, taking into account the major raw material price trends currently? Yes. That's what it looks like. There are some fluctuations. Actually, the coal prices have a bit softened, but at the same time, the iron ore has had the upward trend in both Karnataka region as well as Odisha. Possibly, these will get measured off more or less, and we should be able to hold on to the trajectory. Thank you. Next question is from the line of Pinaki Banerjee from AUM Capital Private Limited. Please go ahead. Thank you, sir, and thanks for the opportunity. My first question is that your previous participant told that coking coal prices have been under pressure for some time now. Is that aiding in your margin growth for the current moment, and where do you see the trend going in future? Actually speaking, the coking coal prices have a bit softened in the last two, three months. Okay. But it is very difficult as of now to really say how it is going to look like. Okay. In fact, there has been some fire in one of the major mine in Australia. Okay. Also a bit of a lull in the steel market. China was also on the back foot. As a result of all this, in between, these coking coal prices have taken a downward impact. Okay. Now China has started getting back. Let's see, really. Okay. Yeah. Sir, your terms and contracts with your final customers, are they fixed price contracts, or do you have the option of renegotiating if the input price goes up? Sir, close to 90%-95% of our contracts are fixed priced. Okay. Actually, if the prices go up, then you can have a relative disadvantage over there. Is my understanding correct, sir? If the prices of the coal go up? If raw materials prices go up. Yes, along with a certain delay, obviously, because of stocks that we have for our existing order book. Okay. There will be an impact, but that similar trend is also playing in reverse because we will then book orders for elevated raw material prices. Okay. If the prices fall, then we will see an upsurge in the margin. On a midterm to long-term basis, you will see a streamlining of the margin. Okay. Sorry. Sir, actually, just now Mr. Ashutosh said that you have repaid about 30 crores of debt. Sir, actually, what is your current debt and cash position now? The current debt, long-term debt is around INR 489 crores. Okay. In the 30th June 2024. Okay. The short-term is INR 1,357 crores. Okay. Total is INR 1,856 crores. Okay, sir. The net debt, after deducting the cash available in the system, is approximately INR 1,500 crores. Okay. Sir, and just again, excuse me, last question. It is a just hypothetical one, sir. Actually, now in the union budget, the finance minister has allocated about INR 16,000 crores for Telangana. So are you seeing any opportunity over there? I think you mean Andhra Pradesh, sir. Andhra Pradesh, sorry. Yes, most definitely we will benefit from that, especially considering that our south plant, which is the bigger capacity one. Okay is in Andhra Pradesh itself. Okay. Okay, sir. That is all from my end. Thanks and all the best for the future. Thank you very much. Thank you. Our next question is from the line of Radha from B&K Securities. Radha, please go ahead. Congratulations and good result. Sir, I wanted to understand that export mix has come down in this quarter to 12%. With increased capacity in place, after three years, how do you see the export mix improving? Sir, with regard to the export, at this point, due to the robust demand in the domestic market, it's a decision that we've taken, keeping in mind margins to reduce export. It's by design that this has taken place. Also, there are fluctuations in the ocean freight owing to various global affairs. It's not really an indicator of what will be happening on a long-term basis. We would like to increase our presence in the export market in tandem with the growth that we are seeing in our capacities. Sir, I believe in the export markets, the realizations are slightly better. It usually is, madam. But as I mentioned, there have been some major upheavals in the transportation costs, which are going to be temporary in nature. Also, there was good demand pull from the domestic market for this particular quarter being close to the election period. That's the reason why we see this trend for that. Okay, sir. Because of lower supply in the export market and accumulation, the domestic demand was very good. Do you expect any loss in market share in the export due to this? As I mentioned earlier, ma'am, this is not a trend for the long-term future. This is a momentary one. What you are saying would probably apply for a period of six months or so, nothing longer. Okay, sir. Secondly, another 75,000 tons capacity is expected to come from the Srikalahasthi plant for FY 2025. Out of this, how much are we planning to sell from this additional capacity in this year? We would be selling most of it, ma'am. I do not think there will be any unsold capacity from the additional. Okay, sir. Can we do north of 8 lakh tons of DI pipes this year? Yes, we will be hitting somewhere around the ballpark figure of 8.5 lakh tons this year. Hello? Hello. This is the operator. Hello? Yes, please. The next question is from Kudait Chauhan from Anand Rathi. Please go ahead. Thank you for the opportunity and congratulations on good set of numbers. There are two questions from my side. When you are saying about the demand, from which region are we getting more demand? My second question is on the land which we have acquired in Odisha, can you give some highlight on that? I will start off by answering the second question first. It is a little early for me to throw any light on our plans in Odisha right now, so I shall refrain from that. With regard to the demand pool, today, there is decent amount of work left almost all over the country. There is no single state which is really pulling a lot of demand. There are ups and downs due to seasonality or fund availability for that particular moment. At times you will see a state pulling in more. There is no really one location. I think Andhra Pradesh is going to pick up for the near future. That is going to be one market which we are optimistic about. Of course, Odisha, Madhya Pradesh, Rajasthan, U.P., these remain strong markets for us as well. What would be our volume on an annualized basis? If you can give some percentage or any ballpark number. Sale volume? Yeah, sale volume. Our sale volume will be, as I mentioned earlier, it would be around in the ballpark of 8.5 lakh tons for this financial year. Okay. Okay, sir. Thank you. Thank you. Next question is from the line of Mr. Guneet Singh from Countercycle PMS. Please note, participants please restrict themselves from asking two questions per participant. Mr. Guneet, please go ahead. Yeah. So sir, I would like to understand, with our competitors and players across the board in DI pipes coming up with capacities in FY 2026 and in the coming two, three years. Do we see there to be any margin pressures in the future with respect to DI pipes? Do we expect the supply to outpace demand? How does the overall industry scenario in DI pipes look like for the coming two, three years in terms of demand/supply dynamics? Sir, in the near term, I look at it as a positive with the increasing capacity in the industry because at this moment there is a major gap between demand and supply, which causes this thought and mindset of changing pipe material. With a strong domestic industry, we will only see the demand being pulled up. It is a kind of cycle where if availability of material increases, so will the demand. That is one part of the equation. The other is that we are very far from installing even our first virgin infrastructure for water pipeline across the urban and the rural sectors. We have just about started with irrigation. So the next five years is quite an optimistic view. Well, in terms of what kind of discrepancy between demand and supply, can you quantify the industry-wide number, if possible? We would be looking at a demand scenario of approximately 5 million to 6 million tonnes over the next five years, each year. Supply would be meeting this, I think, around the third or fourth year. We have some time to go. Thank you. The next line is from Mr. Avinash Nahata from Parami Financial Services. Please go ahead, sir. Yeah. Can you hear me? Yes, sir. We can hear you. Please go ahead. Okay. Yeah, thanks for the opportunity. I have two questions. I have been following the company for quite a long period of time. When we have spoken in the past, let us say last year, we spoke about EBITDA per tonne, and the management team has indicated that 11,000, 12,000, 13,000 should be the right way to look at it. If I look at last four quarters, it is an upward of 15,000, 16,000, 17,000, and this quarter was more than 18,000 EBITDA per tonne. The sales were 193,000 tonne, right? Yes, please. Yeah. So my question is two questions in the same thing. What has transpired in the last four quarters, which has seen what we used to do 10,000, 11,000, 12,000, and we are now doing 16,000, 17,000, 18,000 per tonne in terms of EBITDA. And what are the key reasons from both demand, supply perspective, if you can tell us. And second is, what is the sustainable number? I had asked this question last year also when you guys said 11,000, 12,000 is a good enough number to carry. Yeah. I think last year, the reason for those numbers were because we did not want to overcommit. I do agree on the fact that it was probably not emphasized that we would see such a jump in the overall margins. Although now that we study the reasons, it seems like those reasons are going to be valid for the foreseeable future. Saying that, I think being around these margin numbers is pretty much valid. The reasons are largely demand and supply related. The numbers are, as I have mentioned these just a while ago, was that there is a gap of around 1 million to 1.5 million at this moment between the demand and supply, which will take some time to narrow down. It is largely related to that. There have been some unlocking of efficiencies that we have seen as we have expanded. Of course, there is also the matter of economies of scale that adds to the equation. Hello? Hello, Avinash. Can you hear us? Yeah. Am I audible? Yes, sir. Yeah. So, two questions again from my side is, one is, we were running our plants at full capacity earlier also. Second, from the demand side, when you are saying 1 million tonne, there is a gap of 1 million tonne. So that gap existed one year back also, two year back also. I would not say that the same gap remained one year back and two years back as well. The demand scenario has been picking up. The avenues for the demand pool have also increased by way of irrigation starting to pick up and AMRUT expenditure starting as well. The other aspect in regard to our full utilization of plant, we have obviously made some improvements in the overall equipment, and that really helps you hit better efficiencies. You see, it is not a pro rata jump in your efficiency when you go from a certain size of equipment to a much bigger size. So that comes into play. A half a million tonne steel plant and a 1 million tonne, both running at full capacities, will not have the same performance indexes. Okay. So, are you saying that INR 15,000 per tonne is maintainable? Maybe INR 18,000, INR 19,000 is on the higher side, but INR 15,000 is maintainable according to you over the next foreseeable future you can look at. Yes, please. What was the export number we did in terms of tonnage? We sold around 24,000 tonnes. Thank you. Thanks a lot, and all the very best. Thank you. Thank you very much. Ladies and gentlemen, anyone who wishes to ask a question may press star and one on their touch-tone phone. Please note, participants, please restrict your questions to purpose. Next question is from the line of Mr. Jojo Chahaju from Alpha Invesco Research Services. Please go ahead, sir. Yeah. Thanks for the opportunity. Sir, most of my question is already answered. Just two questions from my side. One is on the exports. So exports volume, as you mentioned, came down to 12%. If I look back, it was around 20% in the Q1 of last year, last financial year. Just want to check, what is the outlook on the export market? If you can specifically talk about Europe and Middle East markets. Well, the demand in Europe and Middle East are very much stable. In fact, in the Middle East, there is an upswing in demand. Europe has seen a very temporary downswing that is more seasonal. Also there were a lot of elections going on this year, so a bit of a slowdown owing to that account. In regard to our percentage of share for export, because of the fluctuations in the ocean freight, there was a bit of a downturn in this quarter. I don't think that this trend will maintain for too long. We are seeing trends for us to maintain the 20% export contribution. Okay, sir. How about the U.S. market doing for us? What is the outlook over there? The U.S. market is very protectionist in nature, it has its own difference in material type, which is one of the reasons why it cannot be completely capitalized by an outsider. It also has a very strong indigenous manufacturing ecosystem. Owing to that, we don't see the U.S. being a market where we can exponentially grow, but we will maintain our existing hold. Thank you. Next question is from the line of Mr. Bharat Seth from Quest Investments. Please go ahead, sir. Hi, good afternoon, sir. Hello. Hi, good afternoon. My question is, we wanted to work on to improve the contribution from joint business, which can help us, which is at higher EBITDA margin. Can you give how the trend is and currently what is the contribution and what are in part and where do we see in couple of years? I am sorry, sir, you will have to elaborate a bit on that question, please. See, we have two products, joints and the pipes, correct? Okay, joints. Sorry, I did not quite get that. Sure. Okay. At this moment, we have been continuously expanding our capacity for fittings. I think that is what you are referring to. Correct. Yeah, fittings. Correct, sir. We are looking at having an installed capacity of 24,000 tons. Even for the greenfield project of Odisha, there are plans at this moment to see if we can expand it. Of course, nothing is concrete. We are hopeful that we maintain the contribution of fittings at around 5%-10%. Going forward, I think that will be a good value add for us. You can say a cherry on cake scenario. Okay. Currently it is in what range? Where do we see in 2025 and 2026? It contributes around 4%-5% at this moment. Okay. We want to take it to 10% in two years time? I am sorry, sir? In 2 years time, we want to take it to 10%? Somewhere between 5-10. Okay. Thank you, and all the best. Thank you. Next question is from the line of Deepesh Sancheti from Manya Finance. Please go ahead, sir. Hi, am I audible? Yes, sir. Yeah. I just wanted to know the capacity utilization is 100%, right? Yes, please. Yeah. So what is the raw material mix? How much of the raw material, like how much iron ore and how much is the coal? Does that affect our raw material prices in terms of percentage? As a percentage, the coal prices are around 52%, and iron ore is around 26%, 27%. 26% to 27%. Okay. And what is the order book right now? We have approximately 11 months of order book. Eleven months. With the increased capacity, are we looking How much of the order book is from exports and from domestic? I am sorry? How much of the order book is from export? We have approximately 15% would be from export and the remainder from domestic. Okay. I know you get this question, but any update on the money from JSW? Being an election quarter, there was a lot of lull on that front, to be very frank. Okay. There was a bit lull, but now with the same government coming again, do we expect that this will expedite? I have been wrong in my assessment of this in the past. I am still optimistic because it is moving in the right direction, but it is a little slower than what we expected. I think it is best if I do not give any timelines at this point. Right. But there has been no advancement or anything, nothing, in this quarter, at least. From the last con call, no, sir. There have not really been any advancements. At the same time, it is not going back either, so there is nothing negative. Okay. We are hopeful. Just wanted to understand with our Odisha expansion and other state expansion, how does the change of government affect our expansion plans? Do we get orders from state government or directly from central government? How is it? The orders are coming in from the state government, but I think both the past and the current government are quite efficient and focused towards the infrastructure development. I do not see any change in stance over there. Okay. With Maharashtra elections or any other elections coming in for the future also, you do not see a big change? Not at all. I am of the view that now every government has realized that infrastructure development is a core part of what is required to be done, and I find that focus is there. Water is also very essential, probably the top one or two points for what is in focus. I do not see any real impact coming in due to the government change. There might be a slowdown due to fund allocation for a temporary period, but nothing more. Okay. I just wanted to understand this JSW matter. It is stuck with the central government, right? Which Ministry is generally involved in this? It is the Ministry of Coal, please. Ministry of Coal. Okay. Thank you so much, sir. Thank you. All the very best, and we are hopeful that you will get the money soon. Thank you for that. We are very hopeful too, sir. Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star and one on your touchtone phone. Next question is from the line of Radha from B&K Securities. Please go ahead, ma'am. Hi, Satyam again. Sir, your guidance of 8.5 lakh tons of volumes, does it include fittings and cast iron pipes, or this is purely DI pipes? These are just the ductile iron pipe figures, ma'am. Okay. How much are we expecting to do in fittings and cast iron? Approximately 36,000 tons in cast iron and 22,000-24,000 tons in fittings. 24,000 and not 25 this year? Yes, please. Okay. Secondly, sir, in this quarter, could you give us the number for fittings and cast iron pipes, and the similar number for last year first quarter? I am sorry, could you repeat that question please? It is a little soft on this side. Yes, sir. Sir, wanted to know the sales volumes of DI fittings and cast iron for this quarter as well as for last year first quarter. In fittings, we sold 4,100 tons in this quarter. Okay. Last year on year, last year, same quarter, it was 3,900 tons. If you can was around 9,300 tons. In the previous year quarter, it was 5,000 tons. Okay, sir. Thanks and all the best. Thank you. Thank you. Next question is from the line of Serdan of AVS Equities. Please go ahead, sir. Hi. Am I audible? Yes, sir. So part of my question was answered already. I was asking regarding the EBITDA margins. We had discussed previously that INR 18,000-INR 5 per ton is the most good, I mean, the best scenario. Can we expect this for the entire financial year, or only there were some specific cases, like, you know, only specific quarters and happenings? We are optimistic to have these tailwinds stay for the entire year, in fact, for the remaining 3-5 years. To answer your question, yes, of course. I cannot give you a specific number on the percentage, sir. No. Can you do INR 18,000-INR 5 per ton scenario for this financial year ahead? Because realistically, I am thinking about that on a year-on-year basis, you sell around 8 lakh tons. Based on that number, can I come up with that expectation? Sir, as I mentioned, it is a little difficult to give you a specific number, but we will be in the ballpark of this, yes. Okay. Another question is regarding the payment side of structure because most of our orders are from the government directly. So how is the payment structured? How is that? Was it structured well in advance and was it different from the No, sir. For domestic part, majority of our orders come in from EPC contractors. It is private companies. They in turn have their linkage with the government. At times when, as it was asked previously in this call, when there is a government change, sometimes there is a bit of a slowdown from the government to the EPC contractor. That in turn, it comes down to us as well. But for around 85% of our order book, which is through EPC contractors, it is all backed up by LCs, bank guarantees or advanced payments. Okay. Thank you so much. Thank you. Ladies and gentlemen, anyone who wishes to ask a question, press star and then one on your touchtone phone. Ladies and gentlemen, the next question is from the line of Mr. Surendra Khemka, individual investor. Please go ahead, sir. Hello. Please go ahead, sir. क्या आप मुझे सुन पा रहे हैं? हाँ जी। मेरा नाम Surendra Khemka है। मैं individual investor हूँ। Sir जी, आपका जो plant करीबन एक महीना बंद रहा था, January महीने में। मतलब plant का maintenance था। हाँ। उसके बाद भी sales figure same आया है Sir जी, 2039, 2033 हो गए हैं और आपने EBITDA margin भी बढ़ाया है। Sir, जो हमारा shutdown हुआ था। हाँ। वो January पूरे महीने नहीं चला था। हाँ। और जो हमारे sales figures हैं। हाँ। [Foreign language] although the numbers are somewhat similar, our margins have gone slightly higher. [Foreign language] 1.5% margin. हाँ जी. So यह जो impact आया है वो largely because of improvement of- नहीं, मेरा कहने का मतलब दूसरा था। मेरा कहने का मतलब था कि January में March quarter में plant shutdown हुआ। तो अपने Q4 में तो shutdown हुआ है ना this quarter में और अपन तो sales ज्यादा आना चाहिए था ना? या ton wise अपना material production कम हुआ क्या? बढ़ना चाहिए ना? बात मैं समझ रहा हूँ fourth quarter में plant करीबन 15-20 दिन बंद था January से लेकर March में। Sir, when you are coming out of the expansion, it takes some time to ramp up the production. That is the reason why the total tonnage is where it is. Plus, owing to the seasonality factor of it, of largely heat, there is some minor inefficiencies that come in the first quarter. अच्छा। अपना वैसे मैं Assam से हूँ, sir. Assam side में अपना Electrosteel premium ही बिकता है, premium ही price है अपना। अपना premium brand है Assam side में, Northeast side में और अपना plant दुर्गापुर में है, sir जी, Bengal में है ना? हाँ जी, but दुर्गापुर में नहीं है। अच्छा, Bengal में है? हाँ जी, एक plant Bengal में है, एक plant South में है। Sir, तो मैंने देखा है जगह अपना price premium ही रहता है और आपने margin 18.5% लिए। कुछ customer अपनी competition में चले जाते हैं due to higher price, due to premium price. और ऐसे order है, ठीक है, यह जो order delivery time two, three month pending है। लेकिन अपना कुछ-कुछ price, जैसे margin बढ़ा लिया आपने, अपना sale भी affect हो रहा है थोड़ा सा। मेरे को लगता है कि अपने पास sufficient sale है कि अपना कोई बात नहीं, premium में ही बेच रहे हैं। दो है ना कि अपना premium में ही बेच लेंगे। Sir, हमारा सबसे पुराना brand है Electrosteel. आज के दिन demand बहुत है। हाँ। लोगों का tonnage बिकने के लिए, तो हम premium command करते हैं उस कारण। Thank you. Next question is from the line of Mr. Rajesh Bhandari from Nakoda Engineers. Please go ahead, sir. Good afternoon, sir. Congratulations for the good numbers. Hello? Yes, thank you very much. Sir, I wanted to know, this Electrosteel, that mining thing was there. Have you received the payment money? Sir, it was in the Electrosteel Castings company that the coal mine was present. This has been recently allocated, not recently, but it has been some time since JSW has been allocated the mine. हाँ। Unfortunately, the processes that lead up to the finalization of the value are still going on. Okay. So although things have been moving on the right track, there is no real firm date as to when we can see this materialize. What is the expected amount, sir? अभी तक तो as per value on our books चल रहा है। [Foreign language] Value on books [Foreign language], sir? INR 1,258 crores. 1258. अच्छा sir, दूसरा मैं देख रहा था अपने पास debt करीब approximately INR 160 crores interest आ जाता है उसपे। तो क्यों आजकल तो QIP का sir fashion चला हुआ है। जिसको देखिए QIP ले रहा है। तो we are a established company, अपन क्यों नहीं QIP के बारे में सोचते हैं, sir? जी, हमारे को sustainable level लग रही है। ज्यादातर जो debt है वो आप देखेंगे अगर तो working capital related है। Term debt हमारा काफी well taken care of है। हाँ। इस trend को देखते हुए हमें लग नहीं रहा कि हमें QIP की जरूरत है अभी। अच्छा sir, छोटे मुंह बड़ी बात बोल रहा हूं मैं। अभी तो BlackRock is your shareholder. हाँ जी। Which is a eight trillion वाला है, sir. तो उसके नाम से तो QIP भीड़ लग जाएगी, sir. Thank you for your suggestion, sir. We shall take that into consideration. Thank you. Next question is from the line of Radha from B&K Securities. Please go ahead. Hi, thanks again. Sir, I wanted to understand what is the average cost of coking coal for this quarter and with respect to that, what is the inventory that they are holding in coking coal cost for the inventory that they are holding? Ma'am, I think that's too detailed an answer to provide. Okay sir. Could you tell me how many months of inventory are we holding as of now? Around 4 and a half months. Okay. Sir, secondly, the acquisition that we are about to do for Singardo. There we have planned to expand in the overseas Asian market. Could you explain what is the opportunity size that we are looking at? Ma'am, the thought behind Singardo is that with our growing capacity, markets which we have earlier avoided due to China's influence, the Southeast Asian market of Vietnam, Thailand, we would like to start exploring that. We have become more competitive on the pricing front with the Chinese. We thought that Singapore is the best place to be for these markets as a hub. This opportunity came in front of us, so it was best to capitalize it. Thank you. Next question is from the line of Mr. Saket Kapoor & Company. Please go ahead. Yeah. Am I audible, sir? Yes, please go ahead. Sir, firstly, if you could explain to me what led to this increase in our consolidated profit this time. When we look at our turnover that has risen from INR 1,832 crore for standalone to approximately INR 2,012 crore for consolidated, whereas the raw material consumption is similar, the same amount. If we keep the consolidated and the standalone numbers, the material consumption is same. If you could just explain and I think this is the first quarter wherein we are seeing these higher amounts of profit at consolidated levels. Earlier, consolidated levels used to report lower profit. If you could just explain any exceptional part for this quarter. So sir, as per the accounting norms, because of the lower export from India, the stock buildup at the subsidiaries are lower. Thus, there is an amplifying effect of the sales both here and in the subsidiaries, which was erstwhile replenished by new stock from India. And we would have to reduce that from the standalone numbers as per the accounting norm earlier. [Foreign language] Thank you, sir. I now hand the conference over to the management of Electrosteel Castings Limited for their closing comments. I would like to thank everybody for taking out their valuable time and listening to us patiently at the end of this very interactive call. I would like to reinstate that the company continues to grow along with maintaining its balance sheet strength and further is well positioned to benefit from the growing water infra spending. In case of any query, please feel free to connect with EY our IR consultants. Thank you. Thank you. On behalf of Electrosteel Castings Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you so much.