Ladies and gentlemen, we welcome you all to the Q4 and fiscal year 2025 earnings conference call of Venus Pipes and Tubes Limited, hosted by Ambit Capital. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. 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 zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Dhruv Jain from Ambit Capital. Thank you. Over to you, sir.
Thank you. Good evening, everyone. On behalf of Ambit Capital, I welcome you all to the fourth quarter and fiscal year 2025 earnings call of Venus Pipes and Tubes Limited. Today we have with us, from the management side, Mr. Arun Kothari, Managing Director, Mr. Dhruv Patel, Whole-time Director and Mr. Kunal Bubna, Chief Financial Officer of the company. We will have the opening remarks from the management initially. After that, we will have a question-and-answer session. Thank you. Over to you, Arun sir.
Good evening. Warm welcome to everyone on the Q4 and fiscal year 2025 earnings call for Venus Pipes and Tubes Limited. I have been joined by Mr. Kunal Bubna, Chief Financial Officer, and our Investor Relations team and our investor relations advisor. We have uploaded our Q4 fiscal year 2025 investor presentation on stock exchanges and company's website. I hope you had an opportunity to go through the same. Before we begin, I would like to point out on two important developments in the company recently. We are proud to share that we have recently secured a major order worth INR 190 crore from India's leading integrated power plant equipment manufacturer. The order is for stainless steel seamless boiler tubes to be used in the series of supercritical and subcritical thermal power projects. The project is expected to be executed progressively over the next 12 months- 15 months.
This is a landmark order for the company, not only because of its size, but also because it reflects our growing technical capabilities. We are confident that with our capabilities and strong execution records, we will be able to secure similar large-scale orders more frequently in the near future. Secondly, we have also achieved a significant milestone with the commencement of operation for 3,600 metric tons per annum of value-added welded tubes. This marks our official entry into the value-added product segment, aligned with our long-term strategy to diversify our offering and move up the value chain. Now I would like to throw some light on the economy front. The global macro environment continues to navigate a period of uncertainty marked by geopolitical tensions, inflationary pressure, and shifting trade dynamics. Conflicts in Eastern Europe, coupled with strategic realignment of supply chain and de-globalization is picking up.
Fair trade by the United States have contributed to a fragmented global trade environment. While GDP growth in advanced economy has moderated, there are signs of stabilization as inflation eases and monetary policy gradually normalizes. India too witnesses slowdown, particularly in the first half of the year due to election and muted private sector investment. However, signs of recovery are emerging, with leading indicators suggesting a gradual pickup in the industrial activity and infrastructure spending. The government's continued focus on manufacturing through the PLI scheme and FTAs is expected to support domestic growth in the long term. As we look ahead in fiscal year 2025, the outlook remains cautiously optimistic, dependent on geopolitical stability, consumer confidence and sustained policy support. On the company front, fiscal year 2025 has been a strong year for us.
Our total revenues grew by 19.5%, reaching to INR 958.5 crore compared to INR 802.2 crore in the fiscal year 2024. The growth was mainly driven by steady flow of new orders, supported by our efforts to enter into new geographies and expand our customer base. We focus on growing our reach across geographies, which help us tap into fresh demand and strengthen our position. A key highlight for the year has been the sharp rise in our export business. Export revenues grew more than 3x from INR 98.7 crore in fiscal year 2024 to INR 338 crore in fiscal year 2025. Out of this, INR 125 crore came in the fourth quarter alone. Exports made up about 35% of our total revenue for the year.
This strong performance, despite global uncertainties, shows the growing demand for our products overseas, wider acceptance of our quality and the benefits of expanding our product range. We continue to engage with dealers and build relationships along with increasing brand visibility with initiatives such as participation in trade fairs and other events. Domestic sales continued to face some pressure during the year due to subdued capital expenditure from both the private and government sectors. However, with several new orders win in the domestic market, we remain optimistic about growth in fiscal year 2026 and beyond. Our confidence is further strengthened by our growing market share, particularly as we continue to gain ground over unorganized players. Looking at our product segments, seamless pipe contributed INR 543 crore, growing by 18%, and welded pipe business contributed INR 350 crore in revenues, growing by 12% on a year-on-year basis.
On the volume side, we achieved 17% growth, with welded pipes growing by 10% and seamless pipes 25%, with overall capacity utilization at approximately 70% on fiscal year 2025 basis. This indicates healthy demand and leaves room for further growth. With continued focus on expanding markets, improving efficiency, and offering some more value-added products, we are optimistic about maintaining this momentum in fiscal year 2026. Our industry-wide mix continues to remain strong with steady supplies to key customers across sectors such as chemical, engineering, pharmaceuticals, food processing, and oil and gas. In addition, we are seeing growing interest from industries that require high-performance material for critical applications, including nuclear, renewable energy, semiconductors, power, and others. These sectors offer exciting opportunities for long-term growth. Currently, our order book stands strong at approximately INR 575 crore, reflecting a healthy pipeline and continuous customer confidence.
I would like to highlight some key business initiatives undertaken by the company this year. During the year, we placed a strong emphasis on two key areas, bringing in experienced talent from the industry and expanding our product portfolio. The recruitment of key manpower is our strategic initiative in strengthening our market position. Over the past few years, we have consistently invested in building a strong team, which is reflected in the increase in our manpower force. These investments are intentional and strategic. We firmly believe that the talent we have grown will significantly enhance our capabilities, helping us gain market share and drive profitable growth over the long term. On the product portfolio front, we announced a CapEx plan in February 2024 to support our next phase of growth. During the year, we began the groundwork for this expansion and currently are in the process of completing it.
We expect to commence commercial production of our value-added product portfolio in fiscal year 2026. A key part of this expansion includes the addition of fittings, which will position us among the select few players in the industry offering comprehensive piping solutions. This strategic move will not only strengthen our product offering, but also deepen our value proposition for customers across industries. Moving forward, as part of our long-term growth strategy, we are focusing on three key areas to build up our market position and build a more resilient business. We are working to establish deeper relationships with strategic customers in Europe, Middle East, Africa, and U.S. markets, while also exploring new regions for growth. At the same time, our well-established domestic presence ensures that we are well-positioned to mitigate any global uncertainties.
This balanced approach between domestic and international markets provides us with a strong platform to manage risks and capture growth opportunities globally. We are gearing up to launch a range of value-added products, including fitting and high-grade pipes, tubes in fiscal year 2026. This will be an important milestone in our product strategy and will give us a competitive edge in an industry where differentiation and quality are increasingly important. We are making focused efforts to expand our presence in critical industries such as nuclear energy, renewables, power, and semiconductors. These sectors have stringent quality and approval standards, making it challenging for most players to enter. Thanks to our strong customer relationships, proven track record, and commitment to quality, we are confident in our ability to secure orders and build long-term partnerships with companies operating in these high-value segments.
We reflect on fiscal year 2025, the year marked a key point in our growth journey, driven by strategic investment in product diversification, talent acquisition, and market expansion. Despite global and domestic challenges, we delivered robust performance, entered high-potential sectors, and laid the foundation for our next phase of growth. With a sharp focus on value-added products, deeper penetration into critical industries, and expanding presence across global markets, we are well positioned to build on this momentum. The recent order wins and our growing capability give us strong confidence as we look ahead. As we enter fiscal year 2026, we do so with cautious optimism, a clear strategic direction, and a commitment to delivering long-term sustainable value for all stakeholders. With this, I hand over to Mr. Kunal Bubna, our Chief Financial Officer, for financial highlights for fiscal year 2025.
Good evening, everyone. We are pleased to share that our company has delivered a steady and resilient performance in Q4 and fiscal year 2025. Achieving growth across all key financial metrics, revenue, EBITDA, and PAT despite a challenging external environment. On the revenue performance side, revenue from operation for Q4 fiscal year 2025 stood at INR 258.1 crore compared to INR 224.1 crore in Q4 fiscal year 2024, reflecting a 15% year-over-year growth. For fiscal year 2025, revenue growth is stronger 19%, reaching INR 958.5 crore, supported by a blended volume growth of 17% across both welded and seamless pipes. Q4 revenue mix 35% from welded pipe, 59% from seamless pipe, and 6% from others.
Fiscal year 2025 revenue mix was 36% from welded pipe, 57% from seamless, and 7% from others. Segment-wise growth year-over-year, seamless segment revenue grew by 22% in Q4 fiscal year 2025 and 18% for fiscal year 2025. Welded segment revenue grows 1% in Q4 fiscal year 2025 and 12% for fiscal year 2025. On the EBITDA front, EBITDA for Q4 fiscal year 2025 stood at INR 41.6 crore compared to INR 45 crore in Q4 fiscal year 2024. EBITDA margin for the quarter was 16.1%. Also, EBITDA for Q3 fiscal year 2025 was INR 37.16 crore.
For fiscal year 2025, EBITDA grew 14.6%, reaching INR 167.6 crore with a margin of 17.5%. On the PAT front, PAT for Q4 fiscal year 2025 was INR 23.7 crore compared to INR 25 crore in Q4 fiscal year 2024 with a margin of 9.2%. For the full year, PAT grew 8.1% year-over-year to INR 92.9 crore with a margin of 9.7%. In closing, we are optimistic about the journey ahead as we remain fully committed to sustainable, profitable growth. With a clear strategy in place, ongoing investment in product expansion, and a sharp focus on operational excellence, we are excited to elevate the Venus brand further and set new benchmarks in the stainless steel pipes industry. With this, I would like to open the floor for question-and-answer now.
Thank you, sir. We will now begin with 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 handsets when asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Amit Kumar, an Individual Investor. Please go ahead.
Thank you for the positive and based on numbers. I have a question. Our top line has increased by 20% year-on-year, but our other expenses increased by 95%, finance costs increased by 56%, and employee costs increased by 70%. Why and why? Could you please throw some light on this?
Yeah. Primarily, if you see, as we have backward integrated ourselves on the side of seamless, the entire volume that substantial portion of that is fully backward integrated. In the earlier year, we were not fully backward integrated. Apart from that, we have also started manufacturing higher gauges of welded pipe and all. If you see, even in the last quarter also, it was in the range of more than 16% other expenses if we take it together. We have been telling that we have invested substantial portion of our resources towards manpower because these costs will definitely reduce in going forward. If you see on a blended basis, welded and seamless taken together, other expenses plus employee cost should be in the range of 16%-18%.
Okay. What are the volumes produced in fiscal year 2025 for both seamless and welded and what is the EBITDA PAT on for both of these?
We don't give EBITDA on an individual basis. On the blended basis, it was near to INR 65, sort of INR 64, INR 65 per kg. As I said to you from the last year, the volume growth was on a blended basis of 17, for individual product it was 25% on the side of seamless and 10% on the side of welded.
Is it possible to provide the volume produced in the-
On a total basis, it was around 26,000 tons on a total basis.
26,000 tons. If you could provide a bifurcation between seamless and welded?
We don't provide exact bifurcation, we are providing you with the increase in percentage that 25% and 10%. Seamless 25% and welded 10%.
Okay. What is the guidance for next two, three financial years in top line and EBITDA, both top line and EBITDA?
You see, on the side of top line, the expansion for the value-added welded tubes had already been done in the month of May, and the other projects are underway. We believe before the end of this March 2026, all the projects will start what we are targeting internally. With all this capacity coming into play, we believe for each year fiscal year 2026 and 2027 it should be a growth of on a top-line basis around 20%, more than 20% sort of number. On the side of EBITDA, on a margin basis, just indicative number you can take between 16%-18%.
Okay. Thank you and all the best. Thank you.
Thank you. A reminder to all participants, please press star and one to ask a question. The next question comes from the line of Dhruv Jain from Ambit Capital. Please go ahead.
Thank you for the opportunity, sir. First question was on the domestic business. While you have done exceptionally well on the export side, I think fiscal year 2025 in general has been impacted on the domestic side. Just wanted to get your thoughts as to how that turns out in fiscal year 2026, right? Are you seeing any green signals? If you could also provide us with the order book of the same of the entire next two, three, four months, whatever time you could provide.
If you see, probably, definitely the domestic demand will subdue. It was also a strategy on the part of the company to elevate their export. That gradual tariff is starting because we want to diversify and move across geographies or to keep ourselves restricted to India. That was the strategy, and we have succeeded in driving our export. Again, I want to mention that there was also subdued domestic demand. Recently, you must have seen we have received a substantial amount of domestic order, which also shows there is a good amount of further demand from power and other sector in the going forward quarters.
Hello? Hello.
I can hear you.
You can hear me? Those demands from those sectors seem to be coming up, there can be demand from desalination, ETP, effluent generation, and STP type of plants and all. There we are also envisaging demand going forward. If you see from the mix perspective, definitely we have pressure of 35% on the side of export and balance on the side of domestic. We see this ratio should be maintained in the coming years to come. The intent is above 30% on the side of export, all depend how the orders and supply order can increase further, but depend on the margins and other factors. On the side of order book, it's roughly INR 570 crore of order book currently, which is more or less split between 40% roughly on the side of export and balance on the side of domestic.
Of the INR 200 crore worth of order, that's basically INR 370 crore for the next three months or four months, right?
Absolutely, yes. It will take more than four months sort of.
Okay, get the point. Just second question was on the CapEx, right? Obviously fiscal year 2026, we are going to see a lot of CapEx coming in from Venus Pipes. Just wanted to understand on a blended utilization basis, what is the number that you expect to end at the end of fiscal year 2026 across both categories?
Yeah, definitely. On the side of It should be blended basis, which should be around 80% sort of number, one thing we should be able to achieve. Probably more than 85%-90% on the side of seamless.
This you're talking, sir, is on top of that 42,600 tons capacity, right?
Yes. Those capacity will come in phases over a period of time. That need to be factored into, because the entire capacity will not be available on the very start of April 2025. I'm taking those into consideration while mentioning my figure.
Okay. Thank you so much and over.
Thank you. A reminder to all participants, please press star and one to ask a question. The next question comes from the line of Radha from BNK Securities. Please go ahead.
Hi, sir. Thank you for the opportunity. My first question was with respect to the boiler tubes order of INR 190 crore. Which is for the supply to thermal power plant. Can there also be an opportunity in future for supplying similar tubes for nuclear and solar power plants? If yes, will we need further customer approvals for separate quality approvals for these products?
You see, we have been supplying to this sector which you have mentioned. Again, see, there are individual clients who sometime have their own quality norms. They'll be saying to you, "Apart from your current approval, you need to be approved by us." We keep on doing that, and we are qualifying for many of the projects what you have mentioned. There are some kind of specific requirements that need to be approved also. Again, on the side of this boiler tubing and all, there are few further tenders to be placed by those bodies in the recent future where we will again be participating and we can also be on that front. There is a possibility also.
Would you by any chance have the bid book for these boiler tubes?
They are spreading across quarters and half yearly basis. We see it's a good amount of substantial of the seamless demand. In the coming three years, it should be quite significant, one thing to be.
Margins would be in the similar range, 16%-18% or higher?
If you take stand-alone in seamless pipe, the margins are higher. What is the margin what we earn currently, it is in the similar margin what we earn for seamless currently.
Just for this product, sir, margin?
Yes, definitely what we earn for seamless, in the same range.
Okay. The third is it mandatory to have a mother hollow to be able to qualify for supplying these boiler tubes? In terms of technology, piercing, welding, extrusion, is there any preference by the customer for being able to supply boiler tubes?
If you see, the preference can be there by the end customer, but this order itself proves that for supplying the T-series or supercritical and subcritical If piercing technically accepted, that will give a good amount of confidence. Should give a good amount of confidence to everyone that piercing is widely accepted in many of the areas. Again, sometimes there are few customers who specifically might want, saying that it should not be from piercing, it should not be from extrusion. That can be there.
Is it mandatory to have mother hollow, sir?
Primarily, not as specifically thought, but we believe they generally prefer those people who have mother hollow because the entire revolution can be inspected at that facility.
Is there any player who is not having mother hollow and have won the orders of boiler tube?
Sir, I'm not.
I was saying that is there any player.
Sir, your voice is breaking. Just a minute.
Yes.
With the current order what we have heard, they have generally not placed an order who is not having mother hollow.
Okay. Currently, if no mother hollow, then they are not approved.
Yeah. Generally, what we have heard till now.
Okay. Yes, sir. Thank you and all the best to you.
Thank you. The next question comes from the line of Parth Bhavsar from Investec India. Please go ahead.
Hi, sir. Sir, thank you for the opportunity. Sir, I have a few questions related to exports. Sir, we have done quite well in the last two quarters. Can you highlight where are we exporting to and what sort of efforts have we put to have a crack on exports?
Primarily the reason had been, we used to be earlier only European country on a predominant basis. For the last 10 years, Europe, USA and Middle East and African countries. It's a mixed bag which is coming from definitely the predominant area is European, U.S., and balance are Middle East, African, and African countries. The efforts have been wide open. We have been participating in all the fairs. We have senior people working in many of these geographies where we have been supplying. Seriously, we have many of the SKUs to be offered to the end customers, and the quality is up to the standard what they required. These all taken in mix help us to grow our export in all the geographies.
Okay. Sir, in terms of margins for these products, would it be similar to the domestic business or would it be lower or higher?
Sort of similar. Sometimes there are few orders where you had a higher margin also. If you see on an aggregate, it's similar.
Okay. Sir, basically, I wanted to understand when we do make this sale, do we do it to directly the end consumer or do we direct it through a dealer distributor? Basically what sort of channel do we use for the exports market?
Primarily-
Is it only EPC player?
No, primarily in Europe and U.S. it's through the dealer and distributor only. They in turn supply to the end industry.
Okay. In Middle East and African countries, you directly supply to the end consumer.
In Middle East and all, the approvals are received from the end customer, but the supplies are made to, the orders are placed generally by the EPC contractors. There are a few cases where it differs also.
Right. I get it. Fair enough. Sir, those are all my questions for now. Thank you.
Thank you. A reminder to all participants, you may press star and one to ask a question. The next question comes from the line of Sneha Talreja from Nuvama Wealth Management. Please go ahead.
Hi, sir. Good evening. Thanks a lot for the opportunity. Just couple of questions from my end. One is on your margin guidance. I am sorry I joined a bit later, but what I understand is it stands at 16%-18%. Just wanted to understand couple of things here. This year we probably will have increase in value-added product also which you've recently launched. Plus if I look at the current margins or for the entire year as a whole, also your margins stood at about 17.5% odd. What is the reason for margins to stand about 16%-18% odd, in case we can get some clarity here?
You are correct from the perspective, few more value-added products have been started. Few more will be started in coming quarter to come. Again, we need to also see the portion of welded will also be increasing, which is generally a low margin as compared to seamless. Keeping all the patterns in mind, we believe those margins should be much unbiased in coming forward years.
Understood. Anything that you can talk about the weakness in the welded side? Where is it coming from?
It's a mixed bag. First being we have not been supplying welded in overseas market, which we started over the past few quarters. A bit of penetrating those regions, our margins have been affected. A bit of competition intensity is also there, which has also affected. In going forward years to come, because of the value-added and more approvals under considerations, we believe the reduced margins should improve further.
Understood. Anything on the growth forecast front? I don't know if you've actually mentioned it, what could be the welded as well as seamless volume growth for the coming year? Some visibility there?
On a blended basis, we see a growth of around 20% for the coming year.
Understood. Thanks, Kunal. All the best to you.
Thank you.
Thank you. A reminder to all participants, you may press star and one to ask a question. The next question comes from the line of Pallav Agarwal from Antique Stock Broking. Please go ahead.
Yeah, good evening, sir. Just a question on the domestic competitive intensity. There were some talks of competitors also planning to go into seamless pipes by a couple of companies. Are we seeing any progress on that or mostly it will take some time for them to get approvals and start manufacturing seamless pipes?
Yeah, definitely some few of the competition will be coming and a few are under process. Again, as we always say, it's an approval-driven business, so everybody should be requiring the requisite approval for getting supply to the end customer or non-key customers. Further, we as a company are working towards value-added products, which will help us to grow with that. We are trying and also working on many of the geographies and many of the sectors so that those intensity can be reduced to the maximum possible one we as a company can do.
Sure. Also in terms of the tariff scenario that is playing out, is there any advantage for Indian companies with respect to exports compared to some of the other countries like, say, China or any other exporting countries?
Definitely it can be because of what we are seeing in case of U.S.A., they may be hefty and apparently already a good amount of duties are there on China when they export to U.S.A. as compared to India. Again, if it is further increased, definitely we believe it should help. Again, those scenarios are not very clear because it is changing every day or every week, it's difficult to predict those things currently.
Sure. Also just on when do you expect domestic markets to start recovering, maybe in a couple of quarters or how long do you think it'll take to recover?
If you see this current order book what we have seen it's from the domestic one only. That only show there is improvement or from a company perspective, we see those improvement. Further few more coalitions or acceptance are missing from the wide number of end industry. We see those recovery started and few more demanding those acceptance coming forward quarters. We see coming year should be good from the domestic perspective.
lastly, I know you have mentioned though, what is the CapEx guidance for fiscal year 2026? 2026, 2027, if you can just give us.
For the current fiscal year 2026, it will be around INR 120 odd crore.
Okay. fiscal year 2027 will be only maintenance CapEx or any growth CapEx also there?
There would be some, but predominantly maintenance. again, we are working on that. Something more there will definitely come and update you on.
Okay. Yeah. Thank you so much.
Thank you. Participants, please press star and one to ask a question. The next question comes from the line of Mihir Damania from Fident Asset Management. Please go ahead.
Yeah. Hi. I hope you are hearing me. My one question is considering that we are very close to a new CapEx coming on board both on the newer products, the value-added pipes and the fittings. Do we have a timeline of how we are looking to execute the newer products? Have we started seeding the newer products to clients? If you have a bit more color on how far are we in terms of winning newer orders and utilizing these CapEx?
On the side of the current welded value-added product, what we have started currently, we are definitely working with a number of clients. Those inspections, those product approvals are already in place. We as a company are working on that, and we believe it will sooner or later, those selling of that will also start. For the newer CapEx, definitely not any as such approval because on the side of seamless tubing, we are currently also supplying to many of them. Again, when you add a capacity to try to absorb those high-value added product more in the system. Those approval for on the side of seamless is already in place and further fittings and all those approvals will be required.
Not much for fitting, we have not as such started any activity company as and when we come up near to our time to start of the project, we will start those things.
Okay, got it. Would you assume that this would take a couple of two to three years to fully utilize these plants?
No, on the side of seamless we are quite confident we would be able to achieve a greater amount of utilization in the next year. On the side of welded also, a substantial portion would be utilized in coming years, in one or two year. On the side of fitting, definitely those will start. It will take some time, but again, one, two year we will post start of that, we will be able to utilize substantial portion of that.
Got it. Just one more update. Currently the USA tariffs, we are not really impacted by the USA tariff, because I think you were earlier also. The earlier tariff for our products still stands. We do not have any incremental duty charged as such.
Yeah. No, you are right. The tariff remains the same for India as compared to what it was earlier. As a company or as a country, we are not affected on our product side.
Got it. Thank you and all the best.
Thank you. Participants, please press star and one to ask a question. The next question comes from the line of Ritesh Shah from Investec India. Please go ahead.
Yeah. Hi, sir. Just one question. Are there any specific approvals for our global suppliers that you are counting on next 6 months- 12 months?
Definitely, yes. In few of the countries, Southeast Asia and others where we are working, there are a few specific approvals which are required. We are working for all of them, at each case, we will keep on adding those in each quarters to come. In few of the cases, we can directly supply because we have been supplying there.
Right. Sir, would it be possible for you to basically mention what are the specific approvals we are looking for? Are there any product process changes that we're already doing? Where are we on the process on the approvals with a few names?
Giving a specific name is, I think it's not currently would be right because those are competitive information. Change of process and all are generally not because process what we currently follow, the process in industry. There can be some testing methodology, there can be some approval methodology and inspection methodology which can change, but not the process which changes with that. It can be change of grades, it can be change of some other things, but not on the processing industry.
Sure. Sir, last question. The guidance that you have indicated, is it contingent to any of these approvals? I would presume no.
Definitely not as such. We work on many of other approvals. We are also aiming to be It is not contingent on that.
Sure. Thank you so much. All the very best. Thank you.
Thank you.
A reminder to all participants, you may press star and one to ask a question. The next question comes from the line of Hena Vora from DAM Capital. Please go ahead.
Hi, sir. Good evening. Thanks for the opportunity. Sir, my question was around the welded piece basically. Just a clarification. You mentioned that the weakness this year was because of domestic being weak, domestic demand, competition coming up, and also some sort of delay in approval.
Can you repeat? I am unable to get you.
Yeah, sorry. Sir, my question was around the welded piece. Just wanted a clarification. Earlier you mentioned that the weak volume growth that we saw this year was because of weak domestic demand, rising competition, and also some delayed approval.
What delayed approval? We said it was more on the side of penetration than geographies where-
Okay.
We were not there earlier.
Okay. Sir, just wanted to understand for the year to come, is there an export angle to this in case domestic takes a few more quarters to revise?
See, we currently have around, if you see the annual, it was around 35% on the export side. We currently have an order book also near to that or more than that. We believe we will be able to continue like that. Again, if there are slowdown in domestic demand further, Definitely, we'll try to increase our piece on the side of export. Again, as we said, we already have a good domestic order book also keeping this new order in hand. We should able to maintain the guidance what we are currently saying to you all.
Okay, understood. Sure. Yeah, that was the only question. Thank you.
Thank you. Participants, you may press star and one to ask a question. The next question comes from the line of Parth Bhavsar from Investec India. Please go ahead.
Hi, sir. Sir, I had a question more on what our future holds basically. We are making an effort to move towards value-added products and add more and more grades into our kitty. Beyond stainless steel and fittings, do we have any product in mind that we would want to foray into post maybe two or three years down the line, considering that there's a lot of competition as well in the stainless steel segment, both in seamless and welded?
See, primarily, as a company, the team which keep on working on other value-added and other products which we can add in our kitty. Again, these all workings are along with the current expansion what is going on. As and when we come up with specific plans or when we have internally finalized those, definitely we'll come and tell. We definitely as a company keep on working on that.
Okay. Fair enough, sir. That was my question, sir. Thank you.
Thank you.
A reminder to all participants, you may press star and one to ask a question. The next question comes from the line of Radha from BNK Securities. Please go ahead.
Hi, sir. [inaudible] . My question was that the welded value-added products. Are there any other players who are making this product in the Indian market? What is the margin delta in these products when we compare to the stainless steel welded products?
Yeah, there are I think a few of the manufacturers in the country. I think it can be more than two, three manufacturers who are manufacturing that in the country. The margin deltas generally are, as and when you get those requisite approvals. It can vary to a certain extent, or it can be 2% higher, 3%. It can be sort of that range, 2%-5%, we can say. After you get the requisite approval and all, those deltas are available to you.
2%-5% higher margins.
On the selling price, yeah.
If you see the whole company, you mentioned.
No, no, I'm saying for that specific product. No, no, for that specific product I'm saying.
Okay.
Yeah.
Yes, sir. Currently as a company, we are doing 17%- 18%. Just for this specific product, this product alone would have 2%- 5% higher margins. That would mean 20%-22%.
No, no. It can't be because it's only 300 tons capacity what we are coming up with, and the capacity utilization will also be very in this current year and next year. It can't give you. For example, a hypothetical example I'm taking.
Yes, sir. Optimal utilization.
Again, it is 300 tons out of my total capacity of 2,300 tons. Again, it will not increase the total percentage in that way. Again, it's all different when you get those approvals and all, when you are qualifying that, then you try to earn those higher delta by selling to them.
Who are the two, three other manufacturers?
Ratnamani is doing that.
Okay. Any plans you have in future to backward integrate into bars?
What?
Is there any plan to backward integrate into stainless steel bars?
Not currently we have any such plans. If something is there or if we finalize something, we'll let you know.
Okay, sir. Thank you, all the best.
Thank you. Ladies and gentlemen, due to time constraints, we'll take the last question from the line of Sudhir, an individual investor. Please go ahead.
Thank you for the opportunity, sir. I have only one question. What is the realization of stainless steel per ton for Venus Pipes? Hello, am I audible?
Can you repeat?
What is the realization of stainless steel per ton for Venus Pipes?
On a blended basis, it was around more than INR 340 per kg, excluding other sales.
Sorry, come again.
INR 340 per kg, excluding other sales, on a blended basis.
Okay. Thank you, sir. Thanks.
Thank you. 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.
I take this opportunity to thank everyone for joining the call. We will keep updating the investor community on a regular basis for incremental update on your company. I hope we have been able to address all your queries. For any further information, kindly contact Strategic Growth Advisors, the investor relation advisors for our company. Thank you once again.
Thank you, sir. Ladies and gentlemen, on behalf of Ambit Capital Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.