Ladies and gentlemen, good day and welcome to earnings conference call of Usha Martin Limited. As a reminder, all participant line 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. Devesh Singh from CDR India. Thank you, and over to you, sir. Good morning, everyone, thank you for joining us on Usha Martin Q1 FY 2027 earnings conference call. We have with us Mr. Rajeev Jhawar, Managing Director of the company, Mr. Abhijit Paul, Chief Financial Officer, and Ms. Shreya Jhawar, Director of the company. We hope all of you have had the opportunity to refer to the earnings documents that we shared with you earlier. We will initiate the call with opening remarks from the management, following which we will open the forum for a Q&A session. Before we begin, I would like to point out that some statements made in today's call may be forward-looking in nature. A disclaimer to this effect has been included in the earnings presentation. I would now like to invite Ms. Shreya Jhawar to make our opening remarks. Thank you, and over to you. Good morning, everyone, thank you for joining us for Usha Martin's earnings conference call for the first quarter of FY 2027. I will begin with a brief overview of our performance and the key business developments during the quarter, following which our CFO, Mr. Abhijit Paul, will take you through the financials in greater detail. We have made a strong start to FY 2027. Consolidated revenue increased by 16% year-on-year to INR 1,033 crores. Operating EBITDA stood at INR 208 crores, a 44% increase year-on-year, with an EBITDA margin of 20.1%. What is particularly encouraging is the quality of this growth. Across our businesses, value grew faster than volume, reflecting improved realizations and our continued shift towards specialized products. You will see this trend through each of the verticals I now take you through. Starting with wire ropes, value growth was strong at 18% year-on-year, even as overall volumes were marginally lower. I want to highlight that the volume decline was largely due to the Middle East operations. Across our other key markets, India, the U.S., and Europe, we saw healthy volume growth and our geographic diversification helped the overall rope business remain robust. In the domestic market, rope volumes grew approximately 12% year-on-year, while value grew around 21%, supported by healthy demand across crane, elevator, and fishing segments. The U.S. and Europe both had strong quarters. In the U.S., growth came mainly from elevator and mining segments, while in Europe, we saw good traction across oil and offshore renewables and value-added services. Now coming to the Middle East operations, volumes were down approximately 28% due to continued geopolitical and market disruptions. However, realizations improved by approximately 36% on the back of better pricing and a more favorable mix, which allowed us to hold revenues broadly at last year's levels. Even in a challenging market, the strength of our portfolio protected our business. Turning to wires. The business delivered healthy growth during the quarter, with volumes up approximately 19% and revenue growing around 32% year-on-year. The wires portfolio today is largely domestic driven, and exports represent a significant growth opportunity for us. We've already begun supplying to select European customers in high-value applications such as automotive and rockfall protection, and we see considerable headroom to scale this as we secure further approvals and deepen our coverage in these markets. On plasticated LRPC, the business continued to gain traction, supported by healthy demand both in the domestic and export markets. A key milestone this quarter was our first international order for plasticated LRPC strand for a stay cable application. This is an important step. As further approvals mature, it opens up meaningful opportunities to expand internationally. This will be central to how we compete in the LRPC segment, where black LRPC has become largely commoditized, while plasticated offers genuine differentiation and better value. Coming to OceanFibre. OceanFibre continued to build momentum. While it remains a small part of the overall business, we are encouraged by the progress across offshore and heavy lifting applications and the pipeline of opportunities ahead. This segment complements our core product portfolio, and we see it as an important growth lever for the company going forward. Overall, I would like to highlight four broader points from the quarter. First, the improvement in performance reflects our shift towards high-value products and applications. Over the past few years, we have made sustained investments in strengthening our manufacturing and R&D capabilities, enabling us to address technically demanding applications across global markets. Many of these products require extensive development testing and customer qualification, creating meaningful barriers to entry. Our growing track record of approvals and successful field performance validates this strategy with the benefit increasingly visible this quarter across our rope portfolio, value-added wires, plasticated LRPC and OceanFibre. Second, we were able to protect profitability and expand margins despite a significant increase in key input and logistics costs. Wire rod prices were approximately 7% higher year-on-year, while zinc prices increased by around 28%. Freight costs also remain elevated. We implemented pricing actions across segments to pass through these increases. Together with improvement in product mix, cost discipline and operating efficiencies, this enabled us to expand EBITDA margins to 20.1%. Third, profitability translated directly into cash. We generated operating cash flow of approximately INR 242 crores, representing cash conversion of 116% of operating EBITDA and closed the quarter with a net cash position of approximately INR 465 crores. Fourth, this balance sheet strength allows us to keep investing confidently in the future growth. During the quarter, we incurred capital expenditure of approximately INR 73 crores. For FY 2027, we continue to expect CapEx of approximately INR 250 crores to INR 300 crores. These investments are focused on expanding capacity in specialized wire ropes and improving manufacturing efficiency. A key project underway is the expansion of our elevator rope capacity by approximately 6,000 metric tons per annum. The additional capacity is expected to be commissioned in phases beginning October, with the project scheduled for completion by the first quarter of FY 2028. Looking ahead, wire rope volumes remain a clear priority and our approach will be value-led volume growth. We will also continue to improve mix, scale our newer verticals and strengthen collaboration across our global operations through the One Usha Martin initiative. While the external environment remains dynamic, demand across our key applications remains healthy. With our differentiated portfolio, long-standing customer relationships and strong balance sheet, we are confident of delivering consistent and profitable growth. With that, I would now like to invite our CFO, Mr. Abhijit Paul, to take you through the financial performance for the quarter in greater detail. Thank you. Thank you. A very good morning to everyone. I will now provide a brief overview of the company's financial performance for the quarter ended June 30th, 2026. During Q1 FY 2027, our consolidated revenue from operations stood at INR 1,033 crore from INR 884 crore, registering a healthy growth of 16.4% year-on-year. During the same period, our operating EBITDA grew to INR 208 crore from INR 145 crore, a growth of 44% year-on-year. This demonstrates that our profitability growth has been driven by a richer product mix, effective cost recovery and strong operating leverage, enabling a significant expansion in earnings. This is visible from our EBITDA margin as well, which improved to 20.1%, a 380 basis point increase year-on-year. Profit after tax for the quarter grew to INR 142 crore from INR 101 crore, registering a growth of 41% year-on-year. From a segmental perspective, the wire rope business recorded revenue growth of 18% year-on-year, while the wire and strand segment grew 31.7% year-on-year. The LRPC segment reported a marginal growth of 3.9% year-on-year. Within wire rope, the value-added rope component stood at 73% compared to 70% in FY 2026. This has enabled us to achieve an EBITDA per ton of INR 40,581. As highlighted earlier, our focus on improving product mix, increasing the share of specialized products and maintaining effective cost management continued to support profitability during the quarter. Our ability to pass on higher input and freight cost further enabled us to maintain healthy margins. Cash generation remained healthy during the quarter. Our operating cash flow before tax stood at INR 242 crore, translating into a cash conversion of approximately 116% of operating EBITDA. After funding CapEx of INR 73 crore, free cash flow stood at INR 135 crore. Continued focus on working capital management further strengthened our financial flexibility and ability to invest in our growth priorities. Our return on capital employed improved to 21.4% from 20.6% as on March 2026. I'm also pleased to share that during the quarter, the company's long-term credit rating was upgraded by India Ratings and Research to IND AA- from IND A+ with a stable outlook. This upgrade reflects the continued strengthening of our financial profile, healthy cash generation, and prudent capital allocation over the past few years. As we move forward, we will remain focused on maintaining healthy cash conversion, improving working capital efficiency, and deploying capital selectively towards opportunities that enhance returns and support long-term growth. To conclude, we made a strong start to FY 2027 with healthy revenue growth, margin expansion, and robust cash generation. Our stronger balance sheet and improved credit profile provide us with financial flexibility to pursue our growth plans while maintaining capital discipline. We remain committed to delivering profitable growth and creating long-term value for our stakeholders. This brings me to the end of my remarks. I would now request the operator to open the floor for question- and- answer session. Thank you. Thank you so much, sir. Ladies and gentlemen, we will begin with the question- and- answer session now. 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 while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from the line of Aman Kumar Sonthalia with AK Securities. Please go ahead. Yeah. Good morning, everybody. Sir, first of all, congratulations to Shreya to become a part of board of director. And because of the effort of Rajeev sir and you, under the leadership of both of you, the company has done excellently in this challenging global environment. And for the first time, the company has achieved a turnover of INR 1,000 crore quarterly. This is again a very big achievement, seeing the challenges geopolitically. So I have few questions regarding the quarterly results. Question one is, how has the wire rope performed in terms of volume compared with both the previous quarter and the corresponding quarter last year? Could you also share your outlook for volume growth over the coming quarters? And one more thing I want to add that how much volume loss we have incurred due to this Middle East crisis. Thank you, Aman Ji, for your question. Rope volumes were marginally lower this quarter, and there were essentially two factors behind it. Firstly, as we mentioned in the opening remarks as well, volumes came in lower in the Middle East, where volumes declined around 28% due to the ongoing geopolitical conflict. The port, marine, and offshore and construction business have all been affected in this region. Projects across Saudi Arabia have been delayed or stalled. The distributors in this region have also taken a conservative approach to stocking. All of these actually have led to a lower demand in this region. Our focus in this region was to maximize inquiry conversions, sell through our value addition route, and optimize product mix as much as possible to reduce overall impact on the top line and bottom line. The second factor was the Asia Pacific region, where we saw some project-related delays during the quarter. These are delays rather than any lost demand. The projects are still under negotiation and in the pipeline, but they will mature in this quarter. At the same time, to reduce our dependence on project-driven business, we have stepped up our customer engagement in the region and identified areas such as crane ropes and elevator that we'll see a clear headroom to build a more regular business to get regular volumes. This will be a key focus area for us through the year. In our other key geographies, Americas, Europe, and India, we saw volume and value growth during the quarter, and we expect the positive momentum to continue in the year as well. Okay. Thank you. Thank you. Sir, next question, although the situation in the Middle East remains uncertain in the near term, if the geopolitical situation improves and reconstruction activities gather pace, how significant could be the opportunity for Usha Martin? Which of our products are best positioned to benefit from such a scenario? Shreya? Hello? Yeah. Yeah. Yeah, can you hear me? Yeah. Yeah, we can. Yes. I'll just start again. You're absolutely right. Yes, the Middle East could represent a meaningful opportunity if and when these geopolitical conditions improve. The opportunity would be across the portfolio. The sectors that we cater to, for example, in the construction and the infrastructure side, when the reconstruction starts, this would support the demand for our crane ropes, particularly the piling applications. Also growth for elevator ropes as well would increase. Secondly, if the investments in ports and logistics infrastructure happens, which we expect once the situation gets better, that should also create demand for port cranes, for marine applications, and even for our GP ropes as well. Thirdly, this region is also an important market, of course, for the oil and offshore. That too should pick up and support the demand for our large diameter ropes as well as for our drill line ropes. Then, beyond the rope side, even for some of these bridge and infrastructure projects, which are currently getting delayed due to the situation, once things get better, this should create opportunities even for plasticated LRPC projects in this market for us. For us being present with our own factory, with our own rigging shop in Saudi, this should create an important advantage to capture these opportunities. Okay. Thank you. One last question is that, apart from wire rope, we are looking for three other businesses. One is plasticated LRPC, another is Galfan wire, and third is synthetic sling. How all the three businesses has done in this quarter, and how we foresee going forward in all these three divisions. Yes, you're absolutely right again that plasticated LRPC synthetic wires are also extremely important parts of the portfolio. In each of these, we've made progress in the quarter. As we mentioned in the opening remarks, plasticated LRPC saw good traction this quarter. We did record the highest volume and value for this segment this quarter. That's also one of the reasons why we saw top-line growth in the LRPC segment despite seeing a volume decline year-on-year. We have started supplying plasticated LRPC to the export market as well for the stay cable applications, which is an important development. With the upcoming approvals that we've been working on for a few years now, both the domestic and export market will open up further. Coming to your second point on the synthetic slings, which is our OceanFibre brand. That is also a very important part of our BSUK business. Last year, I believe, was the first full year of commercial operations for this segment. We can see that over the last five quarters, each quarter the revenue has been on an upward trend when it comes to this segment. From being a pilot project, which is what it started off as, this is now giving us consistent revenue, consistent contribution. Our goal is to see how we can take this from the GBP 2 million -GBP 3 million level that it is now to, say, a GBP 10 million level over the next few years. Being a high margin business, this will add significantly to our bottom line performance in the upcoming years as well. What about Galfan wires? Galfan wires. On Galfan, which is under our brand name Galstar, which is our brand for aluminum zinc-coated wires. That's also progressing well. We're seeing good demand in the domestic market. In the export market also, we've got approvals in place. We are supplying to the European market, for example. These again are critical applications, because they're used in rockfall protection. Customer approvals are based on the performance reliability, not just on price. Scale-up takes time, but we have gotten good successes in the export market also. Our priority is now to see how we can broaden our customer base and get more approvals. Okay. Thank you. This is from my side. Thank you. Thank you. Our next question come from the line of Rajesh Majumdar with 360 ONE Capital. Please go ahead. Yeah, good morning, Rajeev, Shreya, and Abhijit. Actually, I wanted to ask you that if we look at the breakup of the volume numbers, wire rope segment is pretty flattish for the last three quarters. Though the realization per ton has improved steadily and has kept up the margins, the volumes have been quite static. When can we start seeing an uptick in the volume? I understand that 1 Q is normally a seasonally weak quarter as well, and we've seen historically 2 Q has been a very high volume bump up for the wire rope business. Shall we see a similar trend this year? That was the first question. Let me tell you that, as we mentioned earlier, the Middle East market is the one which is impacting, in the last quarter where we almost had a 26% - 30% lower volume, which is almost 1,000 tons. That is the business which we lost because of the current geopolitical situation. However, the other markets have done well, whether it's the domestic market or the European and the U.S. market. Looking at the current opportunities globally, including the domestic market, we feel that we have an opportunity to grow. We still maintain that we will be able to get to 10%-12% growth of volume in this financial year. Now that the capacities are already in place, the inquiries are fairly strong. We should be able to get to our 10%-12% growth in terms of volume for the whole year, as we had indicated earlier. That means we'll have double-digit growth for the balance part of the year because the first quarter is nearly flattish in terms of the volume number. Yes. Also, I would like to state at this point of time that while 10%-12% volume growth is something which we are quite hopeful and we should be able to achieve barring these situations happening globally. At the same time, as we have mentioned, even in the past, our focus has to be both on volume and value because wire rope, it takes time for us to get all the approvals and get into these specialty customers and get consistent and regular business from them. A lot of progress has taken place on that. The capacity is available with us. As these inquiries and orders mature, we should be in a position to push these volumes. Okay, sir. Sir, if you look at the realization per ton, there's a sharp jump in LRPC, which is of course understandable. Subsequently at the end of June, we've seen a huge drop in the LRPC prices as well. Will that impact? How much of the margin impact is there from LRPC this quarter, and will that be negatively impacting next quarter? If so, will there be some positive impact coming from the cost side on the wire rope and the other businesses to negate that impact? Yes, sir. You see, margins, as we have maintained that we don't look at margins per ton. Of course, it's a derived number, which we got a healthy number of INR 40,000. Our focus, as we have maintained earlier also, is to at least maintain a base of 20% now based on all the various initiatives which the company has taken over a period of time. We hope that even going forward, we'll have a minimum base of 20%. We were able to pass on all the cost increase, whether it was for the steel, as Shreya mentioned in the opening remarks. For steel as well as the gas and other inputs increase, we were able to pass it on to the customers. Yes, that also helped us to ensure that the sustainability of margin was there. Going forward, I think our base, as we have been maintaining, would be at 20%, and as these various new CapEx volumes go up, as well as the product mix improves, we should be able to see it moving upwards. We are fairly positive that the new base would be at around 20%. Minimum of 20%. Okay. Sir, what would you guide for CapEx for the next two years for our business? Last question. You see, as we mentioned even earlier, this year, we are investing about INR 250 crores-INR 300 crores. One of the main project is increasing the capacity of elevator rope by almost 6,000 tons a year. Also modernizing and expanding our furnaces to be able to meet the increased demand. As we guided earlier, about INR 250 crores-INR 300 crores would be the CapEx, including routine CapEx or the maintenance CapEx on a yearly basis for us to be able to continue with a top-line growth of 10%-12% in terms of volume and around 15% on value. About INR 250 crores-INR 300 crores a year. Thank you so much. Thank you. Thank you. Our next question comes from the line of Varun Jain with Dolat Capital. Please go ahead. Yeah. Hi. Good morning, sir. I have a couple of questions. One is that OceanFibre became cash flow positive in its first year of operation. What is the total TAM which is here and what is the margin here? I know it's higher than 20%, higher than your blended, but what are the margin profile and why is the margin so high? Is there an IP advantage versus other synthetic sling manufacturers or what? Thanks for your question. The total addressable market for this would be about INR 1.5 billion-INR 2 billion, is what we've estimated. It's smaller than the overall size, of course, of the rope market considerably, but it's growing at high double-digit rate. The gross margins for this are 65%-70%. As you rightly mentioned, they are considerably high. This again, is a specialized product. It is a critical application. Again, it's used in oil and offshore, in wind energy, where in a lot of cases where steel wire ropes cannot be used because the components of either the oil platform or the wind platform are more delicate and sensitive. That is when these are used. These are heavy lifting applications. Last quarter, we executed an order where the weight was only 6 tons of a particular synthetic sling. But the minimum breaking load, the lifting capacity is more than 4,500 tons. That is the nature of the product. It is a highly specialized, again, critical application, where you need approvals and you need track record to build the business. Again, very much in line with our approach to having more value-added products in our portfolio. This also fits well within that. Okay, ma'am. This plasticated LRPC in the Q4 call, management had indicated that some approvals were expected within weeks. Have all those approvals come, and will FY 2027 volumes for this reach like 6,010 tons, which was guided, or will it be higher? For plasticated LRPC, yes, there was one major approval with one of the customers. It's a global customer, but they have high share in the domestic market. Verbally, we have gotten confirmation on that, but some paperwork is still getting a little bit delayed. But it is all progressing well, and it's in place, and the party has already started quoting with our product in the market. We still remain confident of that. In terms of the volumes, yes, we do have a capacity annually of 6,000 tons. Last year, we did close to 2,500 tons. This year, our target is 3,500 tons-4,000 tons, and then next year we should be able to fully utilize the capacity as these approvals come through. And with our traction that we're already seeing in the international market, we're still confident of these numbers. Because this is an area where we have all of the capacity in place for the front end and only the plastification line is the additional CapEx, we are already thinking about how we can further ahead of time increase our capacity, so that in 18 - 24 months' time, as these projects pick up, we are still able to meet the demands of the market. Got it. Management always says that there is a 85% replacement market exposure. What is the replacement cycle for, say, mining, elevator, oil offshore, and how is it different? Which has longer and which has lower, and how sensitive are these replacement cycles to lower utilization? Say if the business is disrupted in Middle East, so then the replacement cycle elongates, or the replacement cycle stays the same? Good question. Yes, like you mentioned, 85% is replacement market for us. Across sectors, this could be different. For example, for certain mining ropes, which are, for example, certain applications like dump ropes in mines, it can be as little as one to two weeks of replacement. Across elevator ropes, it is longer. It can be five to eight years, depending on whether it's a commercial elevator or a residential elevator and how much it is used as well. Ports is somewhere in the middle, it can be between six to 12 months. Every application has sort of a different cycle. Now, coming to your question on the Middle East. Right now, the situation in the Middle East is that a lot of the ports are not even functional, so they are not being used. To that extent, replacement cycles might get delayed a bit. I just want to highlight that these are safety mandated replacements. It's not that a rope breaks and then you replace it. There is a certain timeline based on usage that the various sectors they have in mind, that they are mandated to replace it in, and that's how the replacement happens. We have fairly good idea in terms of predictability of volume for this replacement demand. Got it, ma'am. That's very helpful. Just one last question, if I can sneak in. Usha Martin's U.S. market share is slightly below 5%, and Europe is close to 10%-12%. Over the next three to five years, where do you see the market share in these geographies? Also in India, what is the present market share, and where do you see it in the next three, five years? Starting with the U.S. U.S., yes, our market share is sub 5% right now. If we look at today as a percentage of our total portfolio, about 9%-10% of our revenue comes from the U.S. or broadly the Americas region. This is definitely an under-penetrated market for us relative to the overall size. We do see this as an important expansion opportunity for us going forward, especially in certain value-added segments like elevators, mining, and oil and gas also is an area that we are focusing now. Definitely the U.S. is one of the important markets for us. Europe, of course, having our own rigging shops, our own service centers, and having our own manufacturing as well gives us a big advantage. That is a big market for us. After India, actually, that is our largest market. About 27% of our top line in this quarter came from the European market. In Europe, our strategy going forward will also be that, we have a presence in the U.K., we have a presence in Netherlands, those are well-established markets. Going forward, we still see headroom in markets like Germany, Italy, Denmark, Norway, around the North Sea area. Here our share is relatively smaller right now, we see an opportunity to grow. We will not see Europe as a whole, but we are looking at each of these geographies to see where we can gain share. Lastly, you asked about the India market. Of course, the domestic market is very important. For our 65%-70% market share we do have in the domestic market. Again, the way we look at it is segment-wise. We talked about elevator ropes, where we do have about, I would say, 60%-65% market share, and there is a lot of room to grow. Right now, actually, our biggest constraint is capacity. The elevator market in India is growing at about 20%. All the major OEMs are setting up presence here. Once the additional capacity comes in, we think that we can grow not only as the market grows, but also take more share, which we are not able to cater to right now. Other segments in India we are looking at are ports, is another important segment here. We do have already more than 95% market share in India. More focus is on retaining this market share. Also as the market grows, there is a lot of port expansion that is happening in India. That is another area where we're actively working and having already credibility with having most of the shares, I think this will keep growing as the market grows. Other high-value sectors, piling ropes, mining, of course, domestic market. In all segments, we have a strong dealer network, through them, we cater to most of the segments. Got it, ma'am. Thank you, and all the very best. Thank you. Thank you. Our next question comes from the line of Vineet Thakur with Plus91 AMC. Please go ahead. Hi. Good morning. Thank you for the opportunity, ma'am. I had a couple of questions. Could you just help me understand what your sustainable EBITDA margins going forward? Because we have seen quite a good QoQ and YoY growth in those margins, but what would be a sustainable margin going ahead? You see, as I mentioned, margins were moderated slightly on a sequential basis. As we had mentioned that there could be a quarter-on-quarter variation in terms of margin in the 20%-21% range due to the product segment and also in the geographic mix where we are selling our products. Our goal would be to maintain margins upward of 20%, whereas the focus on both absolute top line and bottom line growth. I would say the minimum would be 20%, and as these various initiatives come up, we expect it to move upwards. Again, this would be depending on how the overall global situation evolves. We are reasonably confident that we should be now having a new base of 20% and gradually moving upwards. Sir, coming to the volume, what would be a volume growth going forward as well? What is the utilization of our consolidated plants going currently? You see, as I mentioned earlier in one of the answers, that the target is to increase our. We still are reasonably confident to get to 10%-12% volume growth this year and a value growth of 15%, depending on the product mix, of course. That is something which we are reasonably confident even now to achieve this in the current year. With the various CapEx programs which we have in hand and the new capacities which have already been added and would be added, we expect this volume growth to continue at similar levels in the coming years as well. Sir, if you see our current YoY volume, sale volume is flattish. It is flat. There's been very minimal change. How do we expect to achieve the 10%-12% volume guidance growth going forward? You see, as I mentioned earlier, I think Shreya also mentioned in our opening remarks, that we had a 10%-12% with the Middle East, which is a very significant market for us, and we had set up our Saudi Arabian operations over there, which had started delivering good results. We were expecting growth to come from that market this year. Instead of getting growth, there is almost a 30% volume dip in that market. These situations, one has to deal with it. Of course, we are all hoping that things will stabilize. On the other side, we grew by 12% in our volume in our markets in India. We grew in the U.S. in terms of volume. We grew in the European market in terms of volume. With these new capacities which have come in and the kind of order book and the inquiry what we have, I would say that we are hopeful of still achieving these numbers with the kind of pipeline of inquiries and orders what we have. You see, at the same time, one has to understand that we are present in so many geographical places in different parts of the world. Sometimes a war-like situation, what happened in the Middle East, does impact the overall business. Otherwise, I would say that looking at the current business environment, the kind of order books and kind of inquiry, we are reasonably confident to achieve that. What I'm trying to understand is that, you think 10%-12% would be inclusive of the Middle East operations resuming or excluding those operations? Hopefully. I think it would be including the Middle East, what we are seeing today, unless it goes into a worse situation from here now. If it is even at similar levels, we should be able to do that. Okay, sir. Sir, my last question would be about realizations. What sort of realizations are we looking at for all the product mix that we have for this quarter? If you could help me. The current realizations, we have been able to pass on the entire increase of the steel and the various gases and the various other input costs which have been increased. Partly it has reflected in the quarter one results. Hopefully we should be able to maintain this increase even in the coming quarters. However, on the LRPC side, we are seeing a slight depression in terms of the realizations because of the ongoing monsoon and the projects slowdown in these states. Otherwise, overall, in terms of wire and wire ropes, we see that we will be able to maintain a healthy realization of our products, slightly better than what we did in the quarter one. Sir, could you know the quantum number for the realizations for the products that we have, or the blended realization what we have achieved this quarter? Can you come again? Shreya Jhawar. Sir, I was asking for the quantum number of the realization. For wires, it would be around the INR 85,000 per ton range, the realization. For LRPC, because a large part was also plasticated LRPC this time, the blended margin for black and plasticated together was about INR 79,000 per ton. Rope in the domestic market was around INR 190,000 per ton. International we saw with more growth in Europe and the U.S. and value-added services, the realizations were one of the highest we've seen, around INR 370,000-INR 380,000 per ton. Ma'am, the INR 370,000 and INR 380,000, these are like a sustainable margin, or is it just due to the war there's an increase in the realization? These are depending on the product mix. We are selling products of OceanMax, which are sold at a different price. There are GP ropes in the international, which are at a different price. Drill line ropes are sold at a different price. These also depend on quarter by quarter. What Shreya mentioned, those are the numbers which we are targeting, and hopefully we should be able to do. That also depends on maturity of some of these orders, what we get in a particular quarter, and how the mix is. In general, because we operate in so many geographies, so many product mix, it's difficult to say that what exact number would be. It would be what Shreya mentioned in a range which she mentioned, that we would be around that range. Okay, sir. Sir, just to get an overview of the industry itself as of right now, due to West Asia crisis and everything else, what are your views about how it is impacting your business? Would it be detrimental in the long run, or will it be beneficial for you? West Asia crisis is already impacting our top line as of now. Assuming that this West Asia crisis is resolved, will create a big opportunity in terms of sudden demand coming up for reconstruction for the various activities of oil, gas will improve in that market, and also the reconstruction activities may happen. Of course, it's all very uncertain as all of us we know that daily things are changing. If things do improve, it should definitely have a positive impact on our business going forward. Sir, what's our current market share in India? If you could just shed some light. We don't look at the market share of individual markets on that basis. But I think as a part of our top line, we are about 9% of our revenue comes from the Middle East. Okay. Thank you, sir. Thank you. Our next question comes from the line of Shiv Kumar Prajapati with Mirae Asset. Please go ahead. Hi. Thanks for the opportunity. My first question would be, is there any new customer addition to our list, and if any of our products are nearing the approval process? What kind of contribution we can expect from profitability as well as from top-line perspective for the next four to six quarters? You see, we have a continuous pipeline of new customer approvals, which is on an ongoing basis for all our various plants, be it in the elevator, be it in the oil offshore, be it in the green industry. Sometimes to get the approval could be a few quarters or even two to three years. There is a ongoing approval process, be it for our plasticated LRPC, be it for our zinc aluminum, which is our Galstar wires, even for our OceanFibre business. It's a continuous process, and I'm happy to say that every quarter we are getting new approvals or new customers which we are targeting with the help of our global development center, global design center. I would say that we prefer not to talk about the name of these customers because we have a confidentiality agreement with them also, not to share the numbers. I can tell you that on an average, at least 10-12 new customers, we keep on adding every few months, across the various segments. There is a very healthy pipeline of these customer approvals and new customer which we are targeting. Got it, sir. My next question is on this UM Cables, basically Usha Martin Cables. That division is not doing well, plus the Thailand segment is also a bit negative. Is there any turnaround or any new strategy in order to make these segments profitable going ahead? As far as UM Cable is concerned, this is not part of our core business. Of course, we are running it, trying to run it because that's a business which is not core, and we do not have any major strengths in that business. We are looking at opportunities of how to use our facility, which is strategically located in West India, western part of India, where the company does not have any other facility to see that is there any opportunity which we can. We are evaluating few opportunities where we could use that facility to grow our value-added wire and wire rope business. That is definitely one of the options in front of us. Long term, on the cable side, we don't see that as a business which we would like to be in. Coming to the business of Thailand. It's a strategically located plant, a very important plant, having a very strong customer base in that region, in the ASEAN region, and one of the leading players in Thailand. Of course, the margins in the previous quarter, first quarter, have improved, and the outlook for the current year is better in Thailand in terms of the order book and all. We are looking at a strategic model, how Thailand can become more profitable, would be able to get better realizations and better margin by enhancing the product mix. I would say in the next six months, we would be in a position to have a fairly well-evolved plan for this, which should create a long-term improved profitability coming from our Thailand plant. One of the options we are even looking at, how do we integrate it better with our plant in India, similar to what we have in Dubai and similar to what we have in the U.K., and see how we can get the synergy benefits and help improve the profitability. That is something. It's a good question. Both of these are in top of our mind, and we would be addressing it in the coming two or three quarters. Sure, sir. Sir, next is on this CBAM. Currently we have very negligible impact, but post FY 2028, we might see some impact on our products or, say, the region to which we cater. What kind of headwinds or issues we can see post FY 2028, and what sort of mitigation strategy are we adopting today? That's a good question. Of course, that's top of our mind as well. As of now, in the definitive period, we are only exposed to one product segment, which is wires, which comes under 7217. We do export that to Europe as well. That is already under the definitive period under CBAM right now. What we're doing is we are working. We've appointed a consultant. We are working with them to understand what would be the cost impact per ton of that, and we are regularly communicating with our customers as well on that to see what strategy we can have jointly. In terms of the wire rope, which comes under 7312, that is not in the definitive period right now because, of course, that is a more complex derivative of steel that will come, like you said, in FY 2028. Through the exercise for wires right now, we are also trying to understand what the cost impact per ton would be for wire rope. It would not be that much more because it is just like value addition beyond wires from an energy consumption perspective. Large part of the cost is because of the impact of the input costs for us, the input material for our steel. From our processes, it is negligible for the emissions compared to what it is for the input material. We are working with our suppliers as well to see what are the options available to us so that we can minimize that overall impact when it hits us in FY 2028. Got it. A couple of questions. Last quarter, we highlighted that we are facing some fuel challenges, like fuel costs are increasing. Somehow, we are able to manage it well so far. Given this West Asia crisis, I mean, it is not yet stable That we desire. Going ahead into second half, can we see any impact on our operating profitability? It's a good question. As we mentioned, we have been able to pass on the increase, whatever has taken place, into the market. Of course, the West Asia crisis helped bring in, and brought in volatility in the oil and gas prices globally. We have been able to successfully pass it on to the customers, very transparently we talk to our customers, hopefully we are in a position to pass it on in the future, we don't see any impact coming on that account to our business. Great, sir. Last question. Referring to the annual report 2026, on a lighter note, I see a jump of 4x in Mr. Rajeev's remuneration. Any comments you would like to add? Yeah. It's not 4x if you look at it, because year before last, when we were going for a major restructuring for our business in our group, whether it's the European business and major cost initiatives which we had taken, I had foregone my bonus for the year 2024/2025. That was for one particular year, I had taken a view that because we had taken some very serious austerity measures across the company. That was an approximate value was approximately INR 8 crores, which was applicable. On my own, I decided to forego it. To that extent, it's an anomaly for a particular year if you look at it. Got it, sir. Thank you so much, and best of luck. Thank you. Our next question comes from the line of Shraddha Kapadia with SMIFS Limited. Please go ahead. Hello, I'm audible? Yes, please. Yes. Yes. Thank you for the opportunity. First, I would like to congratulate the team for a good set of numbers. My first question is, if we take a look, the steel prices have increased meaningfully during the quarter, around 13% QoQ. The EBITDA per ton has improved by only approximately 3% QoQ. Additionally, the EBITDA margins contracted sequentially despite a lower contribution from the plasticated LRPC business. If you could just help us understand the key factors which limited the EBITDA per metric expansion. Is it because of the timing mismatch in the raw material pass-through, or the product mix change, or the cost headwinds? As you said, the EBITDA per ton was at INR 40,000 per ton level. Even after the input costs increased, we were able to pass on the input cost and then further still improve our product mix as well as manage our costs on a year-on-year basis to get these overall margins. When it comes to the sequential decline in the margin percentage, like we said, quarter-on-quarter, even seasonality of Q4 versus Q1, there can be a certain difference in the geographic as well as the product mix. I would not say that quarter-on-quarter it cannot change. It will vary to some extent. As we mentioned, that the goal would be to have a minimum of 20% EBITDA margins, and as the product mix further improves, that should only get better. Sure. Basic question. Sorry. The basic question is that the steel prices have increased by approximately 13% QoQ, Our margin per ton basis has increased by 3% QoQ. Any major reason for that? In the business, you see, the steel price has gone up by INR 7,000 per ton. Right. Our finished product, we have been able to recover that steel price increase. The price of steel is INR 50,000 a ton, or say INR 55,000 a ton. 13% increase of steel price amounts to INR 7,000. Wire rope is sold at INR 180,000 - INR 350,000. You cannot take the percentage of steel price increase of 13% to increase the price of your finished product by 13% of the wire rope, which is sold. Basically, when we talk to customers. Right We are saying that this it is the absolute steel increase which we are able to pass on. The margins don't increase. You cannot increase the steel price. Oh, the 7% steel price increased, so we must have a 13% steel price increase, so we must get 13% on wire rope. It doesn't work that way in any of the products. It's the basic input price which we are able to recover it. Okay. Sir, would it be possible to just give a basic understanding as to how much of the increase which we get from the realization is from the commodity pass-through or due to the richer product mix? Yeah, sure. No, we don't look at percentage. It is the absolute number of steel price. Whatever the steel price increase had taken place, we pass on 100% in the commodity product. There is no absorption of any cost. It is 100% pass-through, whether it is wires or LRPC. In terms of the wire rope, it is purely the steel price increase and the gas and other inputs what increased, we are able to recover from the customer. Commodity is 100% pass-through. Okay. That was quite helpful. Sure. Thank you. Thank you. That is the last question, ladies and gentlemen, for today. I now hand the conference over to the management for the closing comments. Thank you, and over to you, team. I would like to thank everyone for attending this call and showing interest in Usha Martin Limited. I hope we have been able to answer all your questions. The company is dedicated to creating value for all its stakeholders in a sustainable manner. Should you need any further clarification or would you like to know more about the company, please feel free to reach out to us or to CDR India. Thank you once again for taking the time to join us on this call, and see you all in the next quarter. Thank you, ma'am. Ladies and gentlemen, on behalf of Usha Martin Limited, that concludes today's conference call. Thank you for joining us, and you may now disconnect your lines.