Ladies and gentlemen, good day, and welcome to the Maharashtra Seamless Limited Q2 FY twenty-five earnings conference call, hosted by PhillipCapital India Private 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 concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Vikash Singh from PhillipCapital. Thank you, and over to you, sir. Thank you. Good afternoon, everyone. On behalf of PhillipCapital, I invite everyone on Maharashtra Seamless Q2 FY twenty-five investors conference call. From the management side, we have with us Mr. Kaushal Bengani, Deputy General Manager, Investor Relations and Finance. Without taking any more time, I'll hand it over to Kaushal for his opening remarks. Thank you, Vikash. Good afternoon, shareholders, and thank you for joining our earnings call. During Q2 FY 2025, dispatches of seamless pipes improved meaningfully in addition to improvement in product mix. This had a direct impact on earnings, which revised as was communicated in the previous earnings call. Two key points responsible for our performance are, firstly, the partial reversal in Q2 of impact of inventory markdown taken in previous quarter, as more orders have been executed in Q2 and dispatches have improved. The second reason is the dispatches of high value orders in Q2, which have been partially completed. This could not have been done in the earlier quarter, as the relevant mill which was executing these orders was under preventive maintenance. I will briefly summarize key financial indicators. In Q2, our revenue improved by 14% versus Q1 FY 2025 to INR 1,291 crores. EBITDA increased by 83% to INR 231 crore. PAT and EPS increased by 65% to INR 224 crore and INR 16.42 per share, respectively. Apart from financials, there are five key points which I would like to draw attention to. The first is the treasury, which is at INR 2,387 crore as on thirtieth September 2024. It has improved more than anticipated and is generating good returns. In fact, in Q2 FY twenty-five, a large portion of total earnings was from treasury segment. Our order book, secondly, is at INR 1,700 crore, which is in the range of INR 1,500-INR 2,000 crore, and that is the range where we want to maintain our order book at. The fluctuation in the order book is primarily on account of timing mismatch rather than anything else. The order book remains good as demand environment is conducive for manufacturing, industry and oil and gas sector. Thirdly, the ICDs and corporate guarantees on which we had made commitments to shareholders two to three years ago, we are pleased to confirm that there are no ICDs to unrelated entities or any corporate guarantees outstanding, and this issue, which used to be a cause of concern earlier, has since been fully and completely resolved. In the Q2 of this financial year, we have distributed dividend, which was four times of what was distributed in FY 2022. While a specific dividend distribution plan has not been announced, we remain mindful to the point raised by shareholders. At the same time, we would like the shareholders to know that dividend payout has been increasing in the past two financial years. Finally, I wish to reiterate that capital goods and infrastructure in general, and oil and gas specifically, continue to witness strong demand for medium term. This directly impacts the seamless pipes market. Demand for seamless pipes remains buoyant, driven by capital expenditure and spending in oil and gas sector, as we have seen our order book being replenished and maintained at good levels. I would now request Vikash to kindly open for questions. Yeah, operator? Yeah. Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to only use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Rishabh from Sacheti Family Office. Please go ahead, sir. Yeah. Hello, am I audible? Yeah, hello? Yeah Thank you for the opportunity. You know, on your EBITDA per ton front, so the, I think the guidance has been around INR 15,000. And, you know, it's kind of, it varies a lot quarter by quarter. So just wanted to understand what are the factors which contribute to the substantial fluctuation? The person you are speaking with has put your call on hold. Please- Hello. Yes. Yeah. So, you know, I wanted to understand what are the factors which contributes to the substantial fluctuation in EBITDA per ton? And also, what is our, you know, pass on system of, like any change in raw material or other operating costs, how is it passed on customer? Yes, sir. On the fluctuation in EBITDA, it was more pronounced in the Q1 than it was in any of the other quarters in the past couple of years. The reason for the fluctuation in the Q1, I have already elaborated in my earlier call. I'll urge you to go through the transcript of the call, which was conducted for quarter one, FY 2025. So, uh- The guidance is given of INR 15,000 per ton, has been on a blended basis, considering the position that we are in and based on the existing order book. Our EBITDA per ton for H one was at fourteen thousand one hundred fifty-nine rupees per ton, which is in line with the guidance which is given. The sharp increase in EBITDA in the Q2 versus that of the Q1 was anticipated and was also communicated in the call for the Q1, and we are seeing the reversal taking place in the Q2. Sure. So, you know, I wanted to understand, how is the change in raw material prices and other operating costs passed on? Like, what is the system? If you can just elaborate on that. When we receive an order, we book inventory against that order. The reason we do that is because we want to ensure our margins are locked, and we are not impacted by fluctuating raw material prices. That is a policy that we have followed for many years, and it's a policy which we maintain, which is why we hold the level of inventory that we do, because we want to earmark our order book with raw materials. All right. Wonderful. You know, my next question is, how much percentage of the Indian consumption or demand of the seamless pipes is actually fulfilled by the Indian production, right? Like, how much percentage is imported and how much percentage is manufactured in India? Majority of the consumption in the Indian economy is fulfilled by Indian manufacturers. There is a small portion which is imported from China. That has a negative impact on the rest of the industry. Okay, so I can say around 80%-90% is manufactured in India? I don't have the exact number, but it should be in that range. All right. Also, you know, I, I've been reading your concall. You mentioned about that the anti-dumping duty as an absolute price, so that the market rate adjusts to the ADD, hence the dumping continues. So what is the current anti-dumping duty per ton, and what is the industry's response to this absolute ADD? Like, have you asked about a relative ADD or a percentage-based ADD? We did, but, the ADD which was implemented was by way of a minimum import price. That remains, and, we've not been able to get that changed, and I don't think that will change. Okay. The impact of a minimum import price when the market price is generally in the range of the minimum import price is minimal. Okay. Also, you know, what is the manufacturing cost differential, right, between our product or the Indian manufactured product and the ones manufactured in China, right? Let's say the Indian one costs hundred rupees. How much does the Chinese one cost? Like, I want to understand, what is the differential advantage that they have, and what do you think that can- Advantage here, in terms of, production cost, they are subsidized through some shape or form which is either not clear or it is not the appropriate forum to discuss. But, they definitely get some form of benefit, which causes the dumping into India. All right. Also on the export front, right? I have been reading that you people have been trying to get to the export market and, but have not been very successful there, so you know, where are we lagging in exports? Like, is it only on the price front or is there something on the product variety or quality front as well, and there also, let's say we are exporting to Middle East, so what is the difference in the landing price of maybe an Indian product versus a Chinese product? What is the differential there? Just, you know, some ballpark number. It is not, it is not that we do not want to export. The prices in the export market are such that we run two risks: number one, the general risk when any Indian manufacturer decides to export. Number two, if the prices in the export market are lower than the prices in the Indian market, then we run a risk of anti-dumping duties being implemented on us by the exporting country. Therefore, we have to be mindful at what prices we can export. Okay. So- On the Middle East front, we don't export significantly to the Middle East, and that is not an area where we want to focus on growth. So let's say your Middle East was just an example. Let's say you export to U.S. or in the North America. So there, what is the difference in the landing price of ours as versus a Chinese product? That I wanted to understand. Chinese products are not sold in the U.S. Okay, so no other country exports there? Lots of other countries export to the U.S., but there are anti-dumping duties on China by the U.S. and Canada. All right. Got it. Just last question, then I will just come in the queue up. So you know, how much time, order like. In how much time do we expect to execute our order book and, what, and how is our order book and our, run rate business different? Yeah. Order book is generally in the range of three-to-four months. There is a reason why we keep an order book of three-to-four months. It is because we earmark the order book with inventory. The longer the order book that we keep, the more money we'll have to put into inventory. Okay. In our assessment of the business, a three- to four-month order book is sustainable considering all factors. Excellent. Thank you so much. I will just, I will come back in the queue. Thank you so much. Thank you. Thank you. The next question is from the line of Nishant from ManiReek Investment Adviser. Please go ahead, sir. Yes. Am I audible? Yes. Hello. Yeah, first of all, congratulations on the set of numbers for this quarter. I just want to understand one thing. So the seamless pipe utilization has seen a recovery in Q2 with utilization levels touching 78% from, say, around 70%, but the ERW pipes utilization levels has declined. So what is the reason for that? And then the EBITDA quarter has also significantly gone down this quarter. So what is the reason for this dip? Firstly, the ERW segment contributes only 7%-8% of total annual EBITDA of Maharashtra Seamless. So any major impact on Maharashtra, on the ERW segment, will have a minimal impact on Maharashtra Seamless. Secondly, the ERW segment, which is reported to shareholders, is actually a combination of two different products in the ERW category. The first product is for the oil and gas sector, the second product is for the water sector. A mix of these two products leads to the overall revenue and EBITDA that is disclosed. In the Q2, there was a higher proportion of ERW pipes for the water sector, which led to the level of production, dispatch, and EBITDA. All right, and just one more question. So just wanted to understand, what is the current status of the debottlenecking of the Telangana plant? I believe that, you know, you are online to commission this by the H1 of 2026, FY 2026. So, you know, if you can just tell us what is the current CapEx that you've done out of the INR 852 crore that you have planned, and what is the current status of your debottlenecking? The amount expensed is not much as of now, but orders have been placed. Work is going on at the site, and as and when the relevant milestones are reached, payments will be made. But purchase orders have been issued and work is going on. We expect to commission it by December two thousand twenty-five. That is the date which I have given earlier as well. All right. Thank you so much. I'll get back in line. Thank you. The next question is from the line of Jay from IK Capital. Please go ahead, sir. Hi, am I audible? am I audible? Hello. Yes. Yes. So hi, sir. As we have noticed that, the current oil and gas sector is developing very much in Australia, and our products are generally more over used over there. So, do we have any CapEx plan to meet requirements out of that? Because, like, currently we are debottlenecking, and after that we should need some more plans. So any idea on, like, further CapEx or...? I would urge you to refer slide 14 of the presentation. It details everything that you require. Okay. Sure, sir. Thank you. The next question is from the line of Mohammed from Pearl Capital. Please go ahead, sir. Oh, good afternoon. Thank you for giving me the opportunity, and congratulations on the excellent Q2 results. Now, with the strong order book, you know, as of October twentieth, which is like 250 crores more than last year, can we expect a year-on-year increase in Q3 top line growth? And additionally, could you please provide insight into the projected margins for Q3? Should we anticipate these to remain above 20%? Thank you. On the top line, I will not be able to give you a figure, but in terms of dispatches, I think we should be able to dispatch around 100,000 to 110,000 tons of ERW pipes. Since our order book remains good, with a good product mix, I think the guidance of INR 15,000 per ton should continue for the next quarter. Okay. Okay. Now, with the amount of cash available and, you know, investments, do you have any plan to buy back share in the near future, or this money will be in investments, the amount that we have? No, there is no plan as of now. The amount, two thousand crores, that you have in the treasury, will this be remaining in treasury for a long time, or do you have any plan for that? We have announced a capital expenditure plan. It is detailed on slide 14 of our presentation. Okay. Thank you. Thank you. Thank you. Okay. Thank you. The next question is from the line of Muskan from B&K Group. Please go ahead, ma'am. Hello? Am I audible? Yes. So the other income has increased sharply in 2Q. Can we know what's the reason for this, and what's the breakup for this other income? Other income is on account of the treasury that we have. Treasury is at INR 2,387 crores, and all of the other income is derived from it. Okay. It comprises bonds, mutual funds, fixed deposits, corporate deposits. Okay. All right, sir, and sir, in ERW, so there was a sharp correction in HRC prices. So, is there...? Did we book any inventory loss or also, or is it only because of the adverse mix? There was some markdown of inventory in the ERW segment, as prices of HR coils have fallen during the Q2. In addition to that, the impact of product mix was also felt, as more pipes were dispatched for the water sector. Okay, sir. Sir, the working capital has gone up from 121 to 120 days. Sir, what is the reason for this? Working capital has gone up because the debtors have gone up. We have had a discussion internally, and we are taking additional steps to reduce the debtors. We've reduced inventory, but we've not been able to reduce debtors in the previous quarters. We are working to get that done. Okay, so the payment days that has gone up, are we considering to maintain it in the future as well? The payment days has gone from 20 days to 37 days, so are we like planning to maintain in the future as well? We want to improve working capital. We'll do whatever it takes, but it is difficult to specifically point out whether it will be done on inventory or on creditors or on debtors. Okay, sir. But overall, working capital cycle reduction is something which we have discussed, and we are working on it. Okay, sir, and also, sir, last question: When are we expecting our ERW order book to... for its revival? It will happen in the current quarter, which is the Q3. Okay. All right, sir. Okay, thank you, sir. You must, but you must bear in mind that the focus on ERW should be restricted to 7% of your total focus on the company. Mm-hmm. - because the ERW segment only contributes 7% to total earnings of the company. Okay. All right. Okay, sir. Okay. Thank you. Thank you. Thank you. The next question is from the line of Kavish Chand from Vidu Growth Partners, LLP. Please go ahead. Hi, am I audible? Yes. Hi. Thank you for the opportunity. So in the previous earnings calls, you mentioned that Maharashtra Seamless is shifting focus toward value-added products to maintain the sustainable margins. So what specific actions or development has the company undertaken in the previous quarters or recently to implement this value-added product focus? And the key thing is, given the fact that these seamless pipes are primarily transportation pipes. So what is the incentive we give our customers so that they will pay a premium? I mean, how does the Maharashtra Seamless differentiates its product offerings to justify the higher prices? We have developed three new products in the past, four years: cylinder pipes, sour service, subsea seamless pipes, and drill pipes. These are the value addition products where we want to focus, and these are now manufactured in India because we have developed them. Earlier, these products used to be imported. Mm. For sour service, subsea seamless pipes, and cylinder pipes, we are the only manufacturer in India. Okay, thank you. And my next question would be, are there any specific territories or markets we are targeting to enhance our revenue growth? I'll just touch upon the earlier point you made. Seamless pipes are not used for transportation primarily. They are used mainly for drilling activities. Okay. It is a pipe which is utilized in a high pressure, high temperature environment, and that is why the tensile strength of the pipe is important. For this type of application, a seamless pipe is suitable. Okay. Okay, thank you. I just have one more question. So according to the reports, like, the potential opportunity for seamless pipe industry is around one lakh crore in India. So my question would be: How much percentage of it can be won by Indian manufacturer like us? Like, what is our addressable total market? In terms of tonnage, the total market in India is around nine lakh tons. Okay. And in terms of dollar numbers or INR numbers? It is difficult to say because prices of seamless pipes are different for each type of product. Okay, can you explain that thing in more detail? No. Okay, okay, no problem. And what is the timeline of bidding of our orders? What do you mean? Like, in what time we complete our orders, like in six months, five months, a year, or what is the timeline to complete our order, like that? We have an order book of three to four months, and that is what we want to maintain. Okay, thank you. That's it from my side. I will be in the queue again. Thank you. Thank you. The next question is from the line of Neeraj from Arihant Capital. Please go ahead, sir. Hi, good evening. Good evening, sir. Sir, congratulations on a decent set of numbers. Just a couple of questions. One of them you already answered. So, if I just move to slide number four... slide number eighteen, where you mentioned that here, 500 new onshore and offshore wells are drilled, and conservatively, we expect 200 tons per well, which means that roughly one lakh tons of new pipes are required every year. My first understanding, what I wanted to understand over here is that, what is the life of a seamless pipe? I mean, the replaceable term, is it like seven, eight years or beyond that? There is no replacement demand in the case of seamless pipes, because these pipes are extremely durable. And even in high pressure, high temperature environment, these pipes continue for 20-25 years without any requirement of replacement till that period is over. That is the reason why seamless pipes are required for such applications. Further, in the case of well, well drilling, the seamless pipes which are used, they are not retracted from the wells or used for any other application, because once the well is exhausted, the well is sealed off, and it is not economical to retract all of those pipes. Okay, so understood. So, roughly, from the information given, let's say if I assume five hundred new onshore and offshore wells every year, one lakh tons from fresh demand from this only, the remainder, and this is purely India, because mainly ONGC and Oil India, roughly, even if I look at ONGC numbers, it is pretty much close to that. Where is the remainder demand coming from? Because I believe the market that you explained, nine lakh tons in India, and- So the main drilling companies in India are ONGC and Oil India in the upstream segment. Then on the downstream segment for transportation, you have IOCL, BPCL, HPCL, then you have the gas companies, GAIL Gas, Indraprastha Gas, Mahanagar Gas. Then you have cylinder manufacturers who require cylinder pipes like Everest Kanto and a few other cylinder manufacturers. Then you have the power and boiler sector, where the requirement for seamless pipes is there because of the durability of these pipes. Our customers would be Thermax, Thyssen Group, Cheema Boilers. Understood. To give you a summary of whatever I said earlier, of the total dispatches that we make, 70% is in the oil and gas sector, 15% is in the power and boiler sector, and 15% is towards general engineering. General engineering, okay. Understood. Yeah, and sir, as you just highlighted, that in the past three years, you've added four different types of products, which is drill, subsea, and cylinder pipes. If I just look at Q1 and Q2 presentations, we've done some deliveries in drill pipes and cylinder pipes. Q1 had INR 150 crore worth of order book for drill and INR 200 crore worth for cylinder. I just wanted to understand the demand, how it is driven over here, and are we seeing some more orders of drill and cylinder pipes in the bid book? Yes, we are. For both drill pipes and cylinder pipes. There are more orders which are in the process of being finalized. Understood. Okay. Because right now, we are sixty-three and thirty-eight, so more are coming through the bid book, right? Yes. Understood. Perfect. And sir, lastly, if you could highlight what the bid book figure is. INR 1,700 crore. It's there in the presentation. Sir, that is the order book, existing order book is- Sorry, we are not disclosing the bid book, but. Okay. Order book we are disclosing, which is there in the presentation. Understood, and sir, do we have any- Sorry, I, sorry I'm interrupting. Just to give you a sense, if you map out the order books of the previous two quarters, then generally you'll get an idea of where the bid book will be, because then you'll have data points to figure it out. Perfect. Understood. I'll do that. I'll do that. And so just one last thing. If I were to look at utilizations on our current five lakh fifty thousand ton capacity, what is the highest that we can do in a year? In the entire pipe sector m aximum. The impact of production mix on the capacity utilization is significant. What I mean by that is, if you have a production period in which small diameter sizes are being manufactured, and you compare this production period to an identical production period in which large diameter sizes are being manufactured, then the tonnage that you will end up in in the case of the small diameter production period, will be significantly lower than the tonnage that you'll end up in, in the case of the large diameter production period. Giving an impression that when you make smaller sizes, you are inefficient and capacity utilization is lower, and when you make large sizes, you are extremely efficient and capacity utilization is higher. But that is not the reality. And, unfortunately, that is the way the tonnage figure is reported in the entire pipe sector. Generally speaking, we will remain in the range of 65%-80%, even if you account for this fact, in terms of capacity utilization. Okay. So if I look at just purely for understanding purposes, I am a bit. I'm not, I don't have enough understanding in this part. When I look at drill pipes and cylinder pipes, are these generally of large diameter or small diameter? How should I, how should one understand like this? They are of different sizes. Oh, okay. It's mixed. There's no- Lower than the drill pipes, because it's used for drilling activities, is lower than six inches. And, cylinder pipes can be of any size, depending on the size of the cylinder being manufactured. Understood. Okay. That's it from my side, sir. And just to answer in one of the earlier questions you mentioned three, for Q3, we are expecting delivery of one lakh ten thousand tons, INR 15,000 per ton. Now, that's right, correct? I cannot hear you. Hello? Yes. Is this better? Is this better now? Yes. In answer to one of the earlier questions, for Q3, you mentioned that we are expecting deliveries of one lakh to one lakh ten thousand tons, and EBIT of fifteen thousand per ton. I heard that right, correct? Yes. Okay, perfect. All the best, sir. Thank you. Thank you. Thank you. The next question is from the line of Dhaval Shah from Girik Capital. Please go ahead, sir. Yeah. Hi. Just want to, you know, again, get your thoughts regarding the volume growth for current year. Given your positive commentary, you expect it to be a flat volume for the year? And what do you expect for the next year? For FY 2025- Yeah. Volume will be flat. Yeah. It should be around four lakh to four lakh ten thousand tons. For FY 2026, it will be slightly higher, as after December 2025, the finishing line in Telangana will become active, and we'll be able to utilize the capacity which we are not able to utilize right now. That's additional one lakh, right? Addition- One lakh ton per annum is the capacity which we are not able to utilize right now, because we don't have commensurate finishing facility. Correct. Correct. Correct. So that will be useful for one quarter in 2026 for you. Yeah. Okay. And anything on the, you know, the quantum of dumping being done by the Chinese and other countries. Anything on that? The quantum remains the same. What steps are we taking as an industry? You know, overall, the growth looks very bright for the industry, you know, based on your commentary. So, what as an industry any additional steps we take from what we discussed in the last meeting we had? Yeah. We are working on it. We cannot disclose what we are doing right now. I'm sure you must appreciate the confidentiality that is required in such matters. The only comfort that I can give you is that we are working on it, because it impacts us the most, since we are the market leader. Yes. Yes. Yes. And also, there was some BIS norm, which is on the raw material and not on the seamless pipe, right? That's the nature for our industry. Am I understanding correct? It's only on. Raw material. Raw material, and that too, on specific types of raw material, not on everything. Correct. Correct. Okay, great. That's all my side. Thank you. Thank you. Thank you. The next question is from the line of Simran from Almondz Financial Services. Please go ahead, ma'am. Yeah, if it's all free. Okay. Yeah, so I have just one question. Can you guide, you know, for the rest of the twenty-five, half the, for the next two quarters, you know, what will be the margins one can expect in the Maharashtra segment? Some, you know, guidance if you can give. For me, this momentum will maintain around, you know, 80% in the next two quarters. We had given guidance of around INR 16,000 per ton. Okay. In the first six months, we've done around fourteen thousand one hundred. I think it should remain in that system band only. Okay. For the next six months, yeah? For the order book that we have, which is for three-to-four months. Got it. Got it. Done for time. Thank you. Thank you. Thank you. The next question is from the line of Rishabh from Sacheti Family Office. Please go ahead, sir. Yeah, thank you for the opportunity. You know, I understand that you are in the process of doing debottlenecking at Telangana plant. I wanted to ask what are the expected debottlenecking or preventive maintenance shutdown that we can expect in the next twelve months, right? Because you must be having some idea on maybe when it can happen and how much time will it take for that. Any idea on that end? For the debottlenecking? Yeah, debottlenecking and the preventive maintenance shutdown, right? Anything which can... anything new which can happen in the next twelve months that you are aware of and you can tell us? It's a good point that you are bringing up. Preventive maintenance shutdowns are taken once in one year or one and a half years, for one mill. We have four mills. Okay. So- Once the shutdown starts? Sorry. And once the shutdown starts, for completing it? It takes anywhere between 15-30 days, depending on the condition of the mill. Got it. So that is on the preventive maintenance shutdown. Any debottlenecking opportunity that you see across the mills that you have? We have that. That is why we are doing the debottlenecking at Telangana. No, I mean to say any further debottlenecking that is, Telangana one is an ongoing one. I'm asking any expectation that you have, okay, there is a debottlenecking opportunity at some of the plant. We've given out the capital expenditure. All right. Fine. In our presentation, that is what we want to do. All right. You know, also on the rig business that you have, I understand that you are planning to demerge or sell it post May 2025. So, what is the kind of expectation that you have in the terms of realization from that sale of business? And how long will the selling process actually take, like, once you start it in May 2025? ... We don't have an expectation figure right now because that matter has not yet been discussed at board level. It is something which we want to do, but it is subject to board approval. When we reach that stage, suitable communication will be given out. Got it. You know, one more question from my end. So I understand that you manufacture seamless pipes up to 22-inch. Can you throw some light on the split of market size, right, between pipes up to 22-inch and those above 22 inches, both in India and outside India? Like, how much percentage of the market is up to 22-inch and how much percentage above that? We manufacture seamless pipes from half-inch to 20-inch. 20-inch is the highest diameter of seamless pipes which is manufactured in India. Okay. And above that is only in the export market? Globally, I don't think seamless pipes are manufactured beyond 22 inches. All right. Got it, got it. Just a last- That is, that is the size range wherein the application of SAW pipes is appropriate, because after a certain size range, the cost of manufacturing the seamless pipes is much higher than the benefits that accrue from it. Okay. Therein, they use SAW pipes for transportation at higher diameter. On the ERW business front, like, what is the, I understand that you are not very much focused on that, but just wanted to know ballpark number. Like, It will be, poorer than what we achieve in the seamless business, because the seamless business is the most profitable business that we have. No, any numbers on that? Like, how much poorer? We are not giving that out, and I'm not sure why that is relevant, because it contributes only 7% of total earnings. Even if earnings double, then even then, significant impact will not be seen because the earnings for the seamless sector would also improve in that case. Correct. No, no, makes sense. Thank you so much, sir, for the wonderful insights. Thank you. Thank you. Thank you. The next question is from the line of Hemant from Flick Finance. Please go ahead, sir. Hello, Kaushal? Yes. Hello. Thank you. Yeah, my question was regarding the slide 13, with respect to CapEx. Do you have some timelines other than, like, FY 2024, FY 2026? Mr. Hemant, you're not clear. Can you please repeat? Hello? Is that any better? No. Okay. Sorry. Let me try Let me try it again. Is it okay now? Maybe you can email your question, I'll reply. Okay, I'll do. Thank you. Thank you. Thank you. The next question is from the line of Mohammed from Pearl Capital. Please go ahead, sir. It's okay. My question is answered already. Thank you. Thank you. The next question is from the line of Saket from Kapoor & Company. Please go ahead, sir. Yeah, Namaskar, Kaushalji, and thank you for the opportunity. Sir, when we have outlined total CapEx of INR 852 crore, and we have given the timeline from FY 2024 to 2026, wherein we have discussed about Narketpally getting commissioned by December 2025. What steps are in the anvil for the other two major CapEx at Mangaon, that is the cold drawn pipe line, and the largest of all, the hot mill upgrade of INR 350 crore at Nagothane. What steps are we taking to implement those within the timeline set? I think we have some time overrun for Narketpally because of, I think, so unavoidable circumstances or maybe the reason. So if you could just give us our preparation for implementing the other expansions on time. For cold drawn pipe, the relevant equipment has been ordered, and we have segregated land, shed, and water supply for it. Those three processes are completed. The only requirement right now is the installation of equipment, for which orders have been placed. For the solar plant, which we want to put up in Telangana, we have written to the Government of Telangana more than eight months ago, and we were anticipating that due to a government change, we would get permission for open access, but we have still not received that permission, and that permission is not given out by the government to anyone. We are trying our best to see if we can do that. Once that open access permission is there, then we immediately put up a solar power plant. Finally, on the hot mill upgrade, we don't want to do that right now. Once the Telangana finishing line is completed, then we'll do it. Okay. And the timeline for the same is one year say, suppose we commissioned our Nakkapalli unit by December twenty twenty-five. So by the FY twenty-six end, we would be able, or when will we start working on this on this 350 crore CapEx? After seeing the progress for Nakkapalli only we will be able to do it. That is what you are trying to...? Yes, yes, and we'll only be able to tell you once the Telangana finishing line is completed. Okay. Kaushalji, earlier you had mentioned about that China, Chinese players are active in some of the products where the ADD is not there, because earlier those products were not manufactured in the country, so and we were the only manufacturer. So that has affected our product profile. So, are those imports from the Chinese players still unabated and we are facing trouble there now also, or what is the update? We are facing trouble. The entire industry is facing that. Okay. And, we have gone for return to our protective duty or what steps are have been. I think you have both mentioned there that we are preparing whatever can be done for resource. Yeah. Yeah, yeah. The entire industry is working jointly- Working on, okay. Because it impacts everyone. Okay. Two small points. One about the premium thread part. I think so, earlier also it was discussed, and, I think we had some arrangement with Tenaris earlier for the premium thread segment. So, what are our updates? Are we developing those products or, or when can we include that product profile in our market going ahead? We want to do it as early as possible. We are working on it. We have been working on it for more than a year and a half now, and I think it will take another six months. We should be able to conclude in the next six months, and once the agreement is finalized, only then will we be able to add the product to our manufacturing capability. Once that happens, we'll let you know. It is something which we really want to do. We are aware that one of our competitors has done it quickly and successfully, and they are reaping rewards for it. We also want to do it, and it is in our Realm of things. Nagothane. Nagothane to complete at the earliest. Okay. What should be the market size when once done? What would be the target market which will be available to us in that product profile? I don't know for the domestic sector, but what I do know is that it has, it is a huge market from the export front, because only a few players have this capability. Therefore, export market is huge for this. Because as we have seen that oil price averages are trending lower for the last eight to nine months, so $80 looks capped as of now. Even with geopolitical tension, crude has been hovering lower now, sub-$70. So how is that, according to you, impacting the seamless pipes prices realization going ahead? I think the demand outlook you have mentioned already very well, that there is ample demand from the two major, ONGC and Oil India. But how would that in any way the sub lower prices for oil going to affect the realization and thereby the margins for seamless pipe companies like us? The fall in prices will not impact us, at least for the next few months, because the customers that we sell our pipes to largely consume them within India. The order book that we have, the margin for those order books are primarily locked in. If the price crash is substantial or price increase is substantial, then there will be a general adjustment in the industry. But if crude remains between $60 to 70, 80 dollar range, then I don't think there is a problem on margins in the longer term. Okay. Because- Can you- Drilling activities. Yes, please. The reason why I say that is because drilling activities in India will continue, and as long as drilling activities continue, then there will be a requirement for seamless pipe for drilling purposes. Right. And this is also related to the subsea pipes also? Or what affects the subsea pipes demand, the products which you are mentioning? And what the future holds for us in terms of the opportunity? Subsea pipes and drill pipes are used in the oil and gas sector, and their demand will also continue as long as drilling activities continue. For cylinder pipes, it is more in a different sector that is not linked to oil and gas. Okay. Okay, sir. And lastly, the other income you mentioned, that INR 90 crore is on account of the treasury book that we are maintaining of closer to INR 2,400 crore. So this number, can we look on a repetitive basis also going ahead for getting any vagaries in the market or any deployments, since we are not contemplating any big CapEx for H2 also. This number should be. We should continue in this number going ahead also, because this is going to be a constant investment. I think you should take a lower figure because some of the other income is on account of unrealized gains, which is a function of mark-to-market. Mm-hmm. Correct, sir. In the Q1, we did INR 60 crore. In the Q2, we did INR 90 crore. I think if you are modeling, maybe you should consider INR 75 crore going forward per quarter. And if mark-to-market is significantly adverse, then it will be a lower figure. Otherwise, INR 75 crore. Sir? Yes. Sir, the current participant line got disconnected. Okay. So we move forward. Ladies and gentlemen, that was the last question for today. I now hand the conference over to Mr. Vikash Singh for closing comments. On behalf of Phillip Capital, I would like to thank Maharashtra Seamless senior management for giving us the opportunity to host them. Now, I would like to give the call to Kaushal for his closing remarks. Over to you, Kaushal. Thank you, Vikash. Thank you, shareholders, for participating in the earnings call. I'm glad that you took out the opportunity on the festive occasion of Dhanteras. Wishing you a very happy Dhanteras. Thank you, Vikash and the moderator, for enabling this call. Wishing you a happy Dhanteras as well. Thank you. Thank you, Kaushal. Thank you very much, sir. On behalf of PhillipCapital India Private Limited, this concludes this conference. Thank you for joining us, and you may now disconnect your lines.