Ladies and gentlemen, good day, and welcome to the Ratnamani Metals & Tubes Q1 FY23 earnings conference call, hosted by Monarch Networth Capital. 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, this conference is being recorded. I now hand the conference over to Mr. Sahil Sanghvi from Monarch Networth Capital. Thank you, and over to you, sir. Well, thank you, Jitendra. Good afternoon to all. On behalf of Monarch Networth Capital, we welcome you all for the Ratnamani 1Q FY23 earnings call. We are delighted to host the management of Ratnamani today, and from their side, we have Mr. Prakash Sanghvi, the MD and Chairman, and Mr. Manoj Sanghvi, who's the business head, and also Mr. Vimal Katta, Chief Financial Officer. So without taking any much time, I'll hand over call to Mr. Manoj Sanghvi, sir, for the opening remarks. Thank you, and over to you, sir. Yeah, good afternoon. I welcome you all to this call and hope everyone is doing good. Our results for the first quarter of FY 2023 have been uploaded on the exchanges, and I believe you all would have had a chance to go through it. As you all know, past few months has been unprecedented in terms of volatility witnessed across segments, be it commodities, currencies, interest rates, and equities. Not only this, but also the actions imposed by various countries on global trade, coupled with geopolitical issues, have cropped various challenges for the business climate. Most of the developed countries are facing high inflation, resulting to high interest rates outlook compared to our country, which is still reflecting strong, strong macroeconomic scenario. As per various estimates, our economic growth outlook have shown resilience and may remain less impacted. Decline in the commodity prices may further improve the infrastructure demand, and some good traction may be expected in CS and SS pipes. Capacity expansion across refineries and process industries is likely to maintain the momentum, and we expect further improvement in capacity utilization. Continued energy prices at elevated level augurs well for the projects in oil and gas. Opportunities are expected to be robust here. And as you are all aware about the opportunities on the domestic front due to increased allocation of government on CGD, Jal Jeevan Mission, Har Ghar Nal Se Jal, Ken-Betwa River Linking Project, oil and gas transmission project, et cetera. Since you are all aware... since you all are well updated on these schemes and opportunities arising thereof, I would like to straightaway touch upon the quarterly financial numbers and business update in brief, and then we can take questions. Our revenue has increased 85% year-on-year and is flat on sequential basis. EBITDA has increased to INR 139.45 crore, from INR 92.6 crore on year-on-year basis, registering a 50% growth, and sequentially, it has been down by 21.8%. Our EBITDA margin has also contracted by around 4% due to product mix and high raw material costs. During the quarter, in spite of inflationary pressures felt on operating costs, we have been able to contain the same at the levels of preceding quarter. Our net profit margins have reduced by 250 basis points sequentially, mainly on account of inventories. And for the year, we don't expect the variation to be more than ±200 basis points. Our orders on hand as of August 1 is INR 2,345 crore, of which exports is INR 455 crore. This financial year began with lots of uncertainties and challenges in terms of geopolitical situations, inflation, rate hikes, tapering of liquidity and high volatility is witnessed in commodities, and the global situation is likely to remain same over for next few months. So giving any guidance for the long period may not be suitable at this juncture, but as highlighted earlier, we target for a growth of 15%-20% at a constant price basis for this. Thank you. Hello? Sahil, are you there? Yes, yes, sir. Jitendra, you may now start the Q&A session. Sure. Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 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. The first question is from the line of Ashutosh Tiwari with Equirus Securities. Please go ahead, sir. Yeah, hi, firstly, in the new order booking that you're doing, has the steel prices started coming down, like the stainless steel and carbon steel, compared to last three months back? Are we seeing moderation in steel prices as well when you're booking it? Order booking has been consistent, and it has rather gone up. No, no, no, I'm not talking about order booking. I'm saying that in the order booking that we are doing in carbon steel and stainless steel, has the pricing per ton started coming down now because of the steel price decline? Yes, yes. The pricing per ton, yes, it has, it has come down. Okay. Basically, if you're seeing some improvement on a quarter-on-quarter basis in your order books from INR 2,200 crore-INR 2,300 crore as of last quarter to INR 2,345 crore, that means volume addition would have been better than the increase in order book. Yes. The volume addition is better than what it was in the last quarter. Okay. And, I think, we are now seeing good traction in your stainless steel order book. So can we, just, explain, like, which are the drivers over here? Is it like, we also have entered, in the larger diameter tubes, with this new extrusion plant? Is it playing out, or is this still the normal order that we used to, receive earlier? These are our stores. These are normal order. New hot extrusion order booking will start picking up after some time. Right now, whatever is being produced is being captively consumed. Some quantities have been sold in the market also, but those are not significant. So my question is that, are we, let's say, in our sales mix or orders, whatever we're getting in that mix, has the share of larger diameter started going up, inching up a bit, or that's not, still not visible? I understand that you're not selling a hot extrusion directly in the market, but, is that in the diameter, are we inching up now? About 2 in, about 2 in. Whatever we need earlier we used to import, that has been replaced from whatever we are producing from the new hot extrusion facility. So anyway, that larger diameter is being used. Yeah. Okay. But the size is exclusive to this hot extrusion, that is 8 in-10 in. That will take some time, because those demands are driven by the CapEx happening in oil and gas sector and other refineries. So gradually, those should be happening, yeah, going forward. Okay. In the carbon steel side, can you realize some of the projects coming up in domestic export, basically, which will drive growth going ahead? Some new projects being announced by refineries, the other players in oil and gas, oil and gas space. Yes. There are a few water projects in Gujarat and MP and Rajasthan, which we feel will be finalized in another three-four months. Like, we had SAUNI in Gujarat. There is SAUNI first phase, which has already tenders are out, and awards to EPC will happen in another month or two. So then the EPCs will finalize that, put together is 250,000 metric tons, spiral pipes. This is in Gujarat or three states put together? Yes, this is in, this is in Gujarat. Then similarly, there was Rajiv Gandhi Lift Canal Project in Rajasthan, which is 110,000 tons. So that will be finalized in next. Whatever I'm saying is for the next two to three months, what will be finalized. Okay. So this is in water. This is in water. And then, we've been seeing regular requirement from all the private as well as public sector unit. Our ERW as of now, till November, and we see that, in next two to three months, we will, we will be able to book, and, book the same until March. Okay. On ERW, there are few product lines also, where the tenders are submitted for BPCL and HPCL. Okay. So in this water orders, the margin should be lower than what we get in oil and gas, or because it's located in Gujarat and Rajasthan, so we probably can still make decent margin over here? Yeah, because it is located in Gujarat and Rajasthan, we will still make decent margins. And oil and gas, we've seen domestic, whatever projects were there, like for IOCL and for NRL, those have been finalized. There are some projects from HPCL, IGGL, where we have submitted the tenders. You said, BPCL, right? HPCL. Yeah, BPCL is there. Then there is IGGL, Indradhanush Gas Grid Limited, where a few tenders are there. Then there is one tender from GSPL, which is GSPL Chhara Pipeline. So that will be finalized. That is roughly 30,000 tons. And GIGL, which is a subsidiary of GSPL, is coming up with two tenders. Okay. Okay. So as of now, the pipeline looks good in carbon steel space? Yes, yes. The demand for water is more than oil and gas in line pipes. Whereas on the petrochemical and refinery, the demand for pipes is good. So that means, you said petrochemical and refinery, what is good? The demand for LSAW pipes. Okay. And, lastly, some financial questions. One is, how is the net cash position, as of June 22, 2022? See, net-net will be positive, but not very significantly, because working capital continues to be on the higher side. So, that is the thing. On cost level, we should be having closer to INR 150 crore plus sort of invest- sorry, INR 220 crore plus sort of investments as on 30th June. Yeah. Investment, you're saying? Right, investment. Liquid, liquid and, FD. Yeah. Yeah, yeah, yeah. And debt is how much? Debt will be closer to INR 150 crore-INR 160 crore only. So net, that's INR 60 crore-INR 90 crore remains with the company. The precision charter went down quarter-over-quarter, INR 20 crore-INR 19 crore. Any reason? How should we look at it going ahead? See, basically, on average, this 20 should be taken. Here, depreciation, what happens under Companies Act, it works based on the number of shifts worked. So that is the thing, yeah. And, one hot extrusion working at Kutch, that has been now scrapped. And a new facility already it has been commissioned at Indrad. So now even for lower sizes also, we have a new facility of hot extrusion. So now again, depreciation will start moving up in this quarter onwards. Yeah. Okay, okay. And lastly, I think we mentioned that in this quarter, because of maybe at the time of order booking, there are some volatility in steel, that probably hit us in terms of margins. So that should normalize going ahead. We still stick to the 16%-18% margin range. Yeah. Yeah, yeah, yeah. See, that average of 16%-18% ±1% seems to be maintainable over a longer period, which, for any booking period time, some variations may be there. Depends on the product mix and the market situation. Got it. Okay, thanks. That's all from my side. Thank you. Thank you. Our next question is from the line of Pujan Shah with Congruence Advisers. Please go ahead, sir. Yeah, hi, sir. Couple of questions. First question would be, let's say, currently we are being, like, quarter-over-quarter-wise, we have been pretty good on a revenue standpoint, but at a PAT margin, we have been like, two basis points below. Looking at the trajectory, we have been always been... So are we seeing this bottoming out as we have been seeing an increase in the order book, everything is being currently in the oil and gas, is going into CapEx mode and all that thing. So are we safe that we can- we have almost bottom out as the price is also being coming down, steel prices? I know that the export order has been currently at a stagnant point or you can say, on that basis, but are we safe? That is, this is the low we have reached and that is behind us? It seems like that, but nobody can actually say that. It depends totally on the product mix. Going forward, whatever product mix we have with the orders on hand, this seems to be the bottom. Okay. Sir, can you just repeat the order book? Actually, I missed out, so can you just if you can? INR 2,345 crore is the total order as on 1st August, of which exports is INR 455 crore. Sir, can I get the split between the order book? Like, is it water, like water, oil and gas, if you can split it out. No, I don't have any bifurcation on industry, industry-wise bifurcation is not there. But see, basically, here in our case, water this time will be hardly- Water is hardly- Hardly any. Majority, it will be oil and gas sector and other process industry. See, carbon steel is 100% oil and gas, you can say. Maybe, maybe 2%-3% here and there, water might be there, few, very small size order. In case of stainless steel, it's still, it is 100%-... oil and gas sector and other process industry. Water right now is not there in any significant way. Sir, with this standpoint and the current trajectory, are you seeing all the demand, like, in, like, let's say, like, in two to three years horizon, are we seeing any new sector coming up or, like, which we will see the traction coming from this only sector? Are we seeing any new traction coming up from other industries, specific like, manufacturing or sort of a thing like any specific industry, capital goods industry or like? No. Right now, maximum traction is still seen in the same industry. Going forward, maybe once the hydrogen the technology on the transportation of hydrogen evolves, then yes, we might see to other in other industries. But as of now, it is mostly oil and gas, power, chemical industry, pharmaceutical industries, dairy, sugar, those industries only. Okay. That's, that's all, my sir. Thank you, sir. Yeah. Thank you. Thank you. Our next question is from the line of Hiren Kumar Desai. Please go ahead, sir. Yeah. So one question is, because of oil high oil prices and this company is not raising prices, they have been, BPCL, et cetera. They have been reporting losses. Do you suspect some reduction in CapEx because of these problems, which is impacting our demand adversely? So, no. We don't see any reduction in CapEx with the current oil prices and the refining margins. It would improve, and further, a lot of petrochemical. We see a lot of expansion in the petrochemical plant, because there's a growing demand in the country for petchem. Okay. And the second is just a book question. What is the total stainless steel and carbon steel capacity, and what is the current capacity utilized? So carbon steel all put together, 500,000 tons. Okay. Stainless steel, 1,000 tons. I think that broke. The stainless steel, I couldn't hear, please. Stainless steel, 50,000 tons. Okay. Okay, thank you. That answers my question. Thank you, sir. Thank you. Our next question is from the line of Vikash Singh with Philly Cap. Please go ahead, sir. Good morning, sir. Yeah, good afternoon. Sir, I just want to understand that in this quarter, though we have a back-to-back booking, but certain portion would still be exposed to the volatilities of RM cost stream. So have you taken any inventory write-downs? No, no, no, no, no. It is not like that. See, basically, what happens is, at the time of tendering itself, there will always be a time below which we will not go. So, if prices are falling within that band, particularly in the aspect of tender business. So, we book our orders because it is never advisable to keep the capacities idle just to ensure the bottom line achieves a particular percentage. So 1% or 2% here and there will always be there. So, everything is dependent on the market conditions, plus the product mix of dispatches during a particular quarter will also impact the margins. You might have seen in case of third quarter of last financial year, again, margins had come down significantly, though they were in maybe 30-40 bits better than what they are right now. So this situation will always be there. There may be certain quarters where margins may improve significantly. And no inventory write-down in our case, because all the inventories are marked against orders only. We don't have any inventories which are for stock and sales. Understood, sir. Sir, since we don't get the segmental assets and carbon steel data anymore, but in terms of growth, out of these two, which one is you expect to be larger contributor in the overall, you know, earnings going forward? Because stainless steel in FY 2023, I believe, has de-grown from the previous level. So just wanted to understand, which of these segments would have a larger say in the, earnings profile. See, between 30%-35% turnover will continue to come from stainless steel, and remaining from carbon steel. This 5%, 7% band, you can say 27%-35%, 36% will be the range, broader range for stainless steel, quarter-on-quarter. Yearly, roughly 30%-35% will be the range. Okay, sir. These are the current capacities which we have set up. Yeah. So but, since we were talking about last quarter, we have given, like, 30% utilization of new excess capacity. So wouldn't it be that the assets would be, you know, pitching in more and hence our overall margin profile should be improving? ... No, SS, SS capacity utilization mainly will be used captively, so our input dependency has reduced, which will further reduce going forward. So whatever we were importing earlier, that we will be substituting from our new hot extrusion. And some capacities will be available for sale to others. So that will not have a major impact on the product mix. As such, there is increase. Suppose if there is increase in stainless steel revenues, there is increase in carbon steel revenues also, because also set up and commercially operating now. Understood. And sir, since this quarter was pretty good, so are we maintaining our annual revenue guidance impact, which we have given in our previous? Yes. Yes, 15%-20% growth we maintain. So effectively, anywhere 30 to anywhere 25%-30% is the volume growth which we are building in, in our estimates. Is that a correct assumption, since the pricing has been already coming down? No, 15%-20% growth. This is the revenue growth you are talking about, right? Yes. I was talking about if revenue is growing by 15%-20%, then my volume should be closer to 30% growth, because since average prices have been lower now. In case of carbon steel, you may be correct to some extent, but in case of stainless steel, tonnage will never help you. Yeah. Reason being, that there are products where tonnage will be much lower, but value addition will be much higher. And as we have been saying, for so many times, our focus has always been on the higher value-added product. We are never chasing the volumes in terms of tonnage, we are chasing the value addition. So the products which give higher value addition, those will be taken up, which may not result into higher tonnage being produced, but higher value addition will be there, higher turnover will be there. So, we have a product range which starts at INR 300 a kg, goes up to INR 5,000 a kg in stainless steel. So, if INR 5,000 a kg item is there, tonnage will not be there. Tonnage. Things like that. Understood, sir. And sir, last quarter we also announced additional CapEx in SS, as well as HSAW mill, in a new location. So any update on the progress on the same? Yeah, SS, SS work is going on, and the helical SAW some progress is already there at the preparation of the grounds. We'll share the development in next three to six months time. Yes. Understood. And sir, if I may ask one last question: so recently, one of your global competitor, Tubacex, won a multi-year deal in the Abu Dhabi Oil Corporation. So just wanted to understand, so our focus is still on replacing the domestic, basically arrivals, the imports, or are we started to focus on the export market? Because right now, the export market looks pretty good. Many countries are looking to increase their refining capacity. So what are the addressable market segment there, if you could just give us a little bit explanation on that? Traditionally, almost 40% of our turnover in stainless steel has been coming from exports, physical exports only. Additional, roughly 20% will be from indirect exports. Since we supply to the equipment manufacturer, so who in turn export the equipment. Okay. This proportion continues to remain there. And, if you go through our outstanding order book of last couple of quarters, so, this exports in stainless steel have moved up reasonably well, and they are continuously in this range of INR 250 crore sort of thing. So, this is there. And, for the new hot extrusion, that process has now started because now things have become a little more stable. Now, COVID restrictions are also not there, international travel has also become easier. Gradually we may see an export booking happening in case of your products in hot extrusion from the new facility out. It will take some time. Did we get all the approvals in India for that? Right now- Sorry, sir, please. Yeah, this Tubacex has not received any order, but the announcement was that they are setting up something in Abu Dhabi. Yeah, somewhere around 30,000 tons has been, I believe, in line basically. It's a multi-year deal, basically, which would... I assume is one of the largest in SS segment. Yes. So sir, have you got all the approvals for the new SS plant in the domestic market, or there are still few approvals pending and would take time? So also in terms of the, you said recently there would be some time before we start exporting also. So just wanted to understand what is the timeline we are looking at. You know, that process is an ongoing process, and in another two to three years, we will have all the approval. In case of this Tubacex, they have secured the order related to upstream, like gas extraction for gas extraction, where right now we are not present. It will take some time, because right now we are, or mainly we are on the downstream project, application products. Obviously, it can be manufactured, but it will take some time, because for us, that will be a newer segment. So maybe in next two to three years' time, we may have that product range also available with us. Again, if you can recollect, when we started first discussing about the new partnership, we had said, the same facility can manufacture deep drilling application products also, because as you go deeper, normal carbon steel seamless pipes are replaced with duplex quadruplex sort of thing. Yes, it will take some... Yeah, it will take some time. Understood, sir. That's all from my side, and thank you for taking my questions, and all the best for future. Okay. Thank you. Our next question is from the line of Abhijeet Bora with Sharekhan. Please go ahead, sir. Yes, sir, I have two questions. Firstly, last time you guided for 20%-25% revenue growth. This time you are guiding a lower growth. Any special reason for that? No, I, we- Price. Some price correction has happened in the steel and stainless steel segment, but it is, it is close to 20% still, I mean. Okay. Okay. We should be in that vicinity of that with INR 800 crore-INR 4,000 crore of thing. Anyway, it will be higher than 20%. Yeah. Sorry, can you repeat it again? I couldn't hear you. See, see, looking to the performance of first quarter and outstanding order book position, which is there, and the turnover, which we might have achieved in July, keeping the run rate of INR 300 crore minimum. So we should be in that range of INR 3,800 crores sort of thing, which anyway will be more than 20%. Yeah. Okay. Okay. And, secondly, my understanding is that, whatever there is a change in the raw material cost, that is a pass-through for you. Now, you mentioned in the opening remarks that, it was one of the reasons for the lower margin. And when you talk about, product mix change, can you just throw some more light on what was this change which impacted the margin? No. So, product mix is one. If the proportion of carbon steel pipes substantially changes, then the margins can shift by 1% or 2%. Mm-hmm. So that is, that is the product mix. And even within the particular product, say, within carbon steel, if helical increases to a great extent, then L-SAW and ERW, then margin might change a little bit. Similarly, in stainless steel also, if some high value-added products, that proportion of that goes down and welded pipes, for example, general welded pipe goes up, then... So, within stainless steel, within carbon steel also, the even if the, yeah, margin varies from product to product. So that mix, if it changes, we try to remain, and the mix is such that we achieve somewhere between 15%-18%. The quarter-on-quarter percent performance keep on fluctuating. We, we are earlier also seeing, it has, it might come down percent, it may go up to 20% also. So, but on average, yearly performance should fall within that range. Okay? Yeah. Okay. And, one last question: Can you throw some light on the bid pipeline, across sectors? I missed in the earlier part. The bid pipeline, which you are looking at across sectors, oil and gas, water. I missed on in the earlier part, if you have explained it. The- The bidding, yeah, pardon. New orders pipeline, which we are bidding for, or we have already bid for. As I commented earlier, in water, there is roughly 250,000 tons to be finalized in Gujarat. Okay. About 110,000 tons-120,000 tons to be finalized in Rajasthan. And there is, of course, 200,000 tons-300,000 tons to be finalized in MP. We are considering for water only these three states, because of the proximity. Okay. Then in oil and gas, we have about 100,000 tons of projects which tenders have been submitted and results are awaited. Then there is demand from approx 20,000-25,000 tons of pipes required for city gas distribution from various private players and public sector units. So, of that, we feel that, of course, 10,000 tons-15,000 tons of ERW pipes we can secure. Okay. Okay, thank you. And on the oil and gas and on stainless steel, a lot of process pipes, pipes for LNG and pipes for refineries. So we've seen a lot of requirements from there. In exports, we've seen requirements for small diameter tubes. Okay. Yeah. Some projects, because Russia also had a good amount of pipe making capacity, and they were supplying to a lot of projects in Europe. But because of the sanctions, they are no longer able to supply. So we've seen a few inquiries, and rather, one of them is converted to order also, for Europe. Okay. Okay. Thank you, sir. Thanks also from my side. Thank you. Our next question is from the line of Anirudh Shetty with Solidarity Investment Managers. Please go ahead, sir. Yes. Hi, thanks for taking my question. I had three questions. So just to push on this point or on what's happening in Russia, you know, given that Europe is so dependent on Russia gas and they're looking to de-risk, and that might, you know, entail more expansion and, you know, just the LNG terminal setups and all that's required. Do you see, you know, a business opportunity for Ratnamani, because of this CapEx that they might need to incur? And are you seeing more inquiries coming on to on that front? So, on Russia, as I informed earlier, Russia has a huge pipe making capacity, that is carbon steel. And Ukraine has a good amount of stainless steel pipe making capacity. So both of them is disturbed because of the war situation and Russia because of sanctions. So, the flow of inquiry and even the finalization, both for stainless steel and carbon steel, we've seen going up. Yeah, good traction is seen from Europe. Now, going forward, yes, a lot of countries will start working on reducing their dependency on Russia. So where easiest is LNG, bringing the LNG and, once the LNG is brought into the country, to get it to the storage tank, stainless steel pipes is the only solution. So we will see a good demand coming for stainless steel pipes for that going forward. Got it. And, is there also an opportunity from, you know, like, there's, there was always China plus one, now there could be a Russia, Ukraine plus one. Is there, could there be a Europe plus one opportunity for us if, you know, the power cost in Europe is going up, you know, would that impact the cost, effectiveness of European players, which would, you know, leave us better positioned to, you know, gain market share from them? Is that also an opportunity? Yeah, definitely. That opportunity, not only the cost going up, but even supply is an issue for them right now. To get gas, a lot of industries are suffering. So, that's why in other markets also, we will, we will definitely see a lot of traction. Got it. So my final question is, I wanted to understand the true useful life of our, you know, our fixed assets. So, if I look at our, our plant and equipment and, all of that, would... What would the useful life be, and what is the depreciation life for that today? Roughly, you can take around 20 to 25 years as useful life for various items of plant or machinery. It depends on different plant or machineries also. So, that's how it is there. Yeah. Yes, but a lot of, see, a lot of upgradation, maintenance, modification continues. So every second year, third year, electricals definitely would change, but mechanical can go for much longer than 25 years also. Like, steel, nothing would happen to steel for 25 years. So, just to clarify, 20 to 25 years is the life over which we depreciate this asset, but you're saying that the mechanical parts can actually last much longer, so the actual useful life- Yes. is longer than this 20 to 25? Yes, yes. See, actually, actual life depends on how the plant or machinery items are maintained. See, if we talk of our earlier investment in extrusion facility, that plant was of 1960s vintage. Yeah. ERW mill, what we are right now using- That is also 1960. That is also 1960 vintage. So what depends on what you're saying? How you mean? Yeah, but that of 1960 is, if you see all the electricals, and some mechanicals also have been completely changed to the latest generation. And, except for the steel, nothing is old. So, so we, as a policy, we, depreciate our plant or machinery for a period of 20 to 25 years based on the inputs from our, technical team. And, then, of course, maintenance CapEx keeps on happening, and usually these plant or machinery items will last for a much longer time period than this 20 to 25 years. So we have plant and machinery items which have been in books depreciated fully, but they are working as good as new ones. The fact is, our existing process pipe facility will be more or less, 80%-90% depreciated, but is contributing almost, INR 300 crore-INR 400 crore to the top line, is a very good margin. Got it. One final question is, what is the typical maintenance CapEx in our business, and how is that accounted for? Is that taken to the P&L or do we capitalize it? No, it is, it is part of P&L, profit and loss account only, under repairs and maintenance. It will be hardly anything, maybe anything around INR 40 crore, INR 40 crore maximum, you can say INR 40 crore sort of thing. Yeah. Got it. Okay. That's it from my side. Thank you for answering my questions. Thank you. Our next question is from the line of Kunal Shah with Carnelian Capital. Please go ahead, sir. Mr. Shah, could you please go ahead with your question? Mr. Shah, if you can hear us, please go ahead with your question. Since Mr. Shah is not responding, we will go ahead and go ahead with the other question. Just give me one moment. Our next question is from the line of Radha Agarwal with BNK Securities. Please go ahead. Hi, am I audible? Yes. Okay, thank you for the opportunity. Firstly, I'd like to tell the moderator that the line is pretty patchy, and there are multiple breaks in between, so if you can resolve that. So, sir, my first question to you is, previously we have spoken about Cauvery Basin Refinery. So is there any visibility on obtaining orders from the same? And, what could be the size of opportunity for the SS pipes from them? Not... there is no further development on that. Right now. Right now. It was still to be awarded for feed, but it is not yet awarded. Okay. Sir, also, if you see in the last five years, the stainless steel volumes are, have been pretty flat in the range of about 21K. So, by when do we see that the volume will start picking up significantly? And, what do you expect, like, how confident are we in filling the stainless steel capacity for the next, thre to four years? Here, here, increasing volume is very easy, but then value addition will take it. Basically, first, if you might have heard me in this call earlier, the focus has been on the higher value-added products, which may not give you the tonnage in which may not contribute significantly to the volume, but value addition will continue to be good. So focus continues in that direction. Lot of investment on development of import substitute products and higher value-added products has been going on continuously. And that is the reason, if we have been in a position to withstand market volatility in a much better way in last couple of years' time. So going forward also, we may not see volumes increasing significantly, even up once this, if the existing hot induction facilities utilized optimally. And also, we will try to have those products hot extruded, which are exotic in nature, which are import substitute products, where not many players are there, competition is less, so that our position is safe and we continue to enjoy an edge and a distance between ourselves and our nearest competitors. Okay, understood. Got it, sir. So just one last question. Forgive me if it's a repetition, because the line was patchy. So, could you give me some idea on the project-wise opportunity, like CGD projects and water segment? What is the present opportunity that you see in that? And in the upcoming CGD project, which round working is going on, like round 5 to 10? No, CGD, 10th round was already over. Mm-hmm. Tenth round... 11th, 11th round, sorry. So, next, I think so will come after maybe, five or six months. But a lot of, geographical areas are already awarded. All regions. Yeah. So, CapEx for those geographical areas is being planned, and eventually, the network has to be increased by the existing players. So the demand for CGD will come from there. Water, Gujarat, Rajasthan, MP, we've already said, 300,000 tons-400,000 tons already under bidding... And oil and gas, we've already submitted close to 100,000 tons of tender, for which the results is awaited. Okay. Thank you, sir. Thank you. Our next question is from the line of Raj Shah with Marcellus Investment Managers. Please go ahead, sir. Okay. Am I audible? Yes, you're audible, sir. Go ahead. Okay. So, my question was, sir, if you see, this industry, especially since our industry is highly dependent on the CapEx by refineries, so five years down the line, if we say the EV has seen kind of substantial penetration, how do you see the CapEx by oil and gas, five years down the line, sir? Hello? Hello? Hello. Hello? Hello. Am I audible? Yes, you are audible to me. Mr. Sanghvi, would you like to take over or Mr. Katta? Hello. I think they cannot hear us. The person you are speaking with has put your call on hold. Please stay on the line. You are speaking with has put your call on hold. Please stay on the line. Hello. Yes, Manoj sir, we can hear you. Hello? Yes, sorry, the call got dropped. You can go ahead with the call. Raj, you can go ahead with your questions. Mr. Shah, you can go ahead with your question. Can you hear us? Yeah. Yeah, please continue. Mr. Shah? Mr. Shah, if you can hear us, you may go ahead with your question. Since there is no response from Mr. Shah's end, we'll go ahead and take the next question. Our next question is, from the line of Pujan Shah. Please go ahead. Thank you for the follow-up. Sir, actually, just one question. This order book which we have been setting up to, is execution... What is the execution figure for this? Like six months or so? One year. In current financial year. In current financial year. So this is the current financial year. Okay. Okay, so got it. Yeah, that's my question. Thank you. Thank you. Thank you. Thank you. If you would like to ask a question, please dial star and zero on your touch-tone phone. Since there are no more questions, we have come to the end of the question and answer session. Okay, just give me one moment. We have one question from the line of Mr. Hiren Kumar Desai. Please go ahead, sir. Yeah, yeah. The question is, so, one, somebody in the management mentioned about improving demand outlook because of Russia and Ukraine issues. Mm. Are we observing something similar because of lockdowns in China, because of COVID, et cetera? I mean, what kind of impact are we seeing? No, lockdowns in China were there earlier, but everything has opened up now. With that- Okay. China is more or less- Yes. China is more or less able to produce whatever they want to export or whatever. Yes, yes. And lockdowns were more within the city or some area. It was. For industrial areas, there was, there were no major lockdowns. Only thing, the supply chain was little disturbed, but now line. Okay. Okay, thank you, sir. Yeah, that answers my question. Okay. Thank you. Since there are no more questions, we have come to the end of the question and answer session. I would now like to hand the conference over to Mr. Sahil Sanghvi for closing comments. Please go ahead, sir. Yeah, thank you. Thank you, Jitendra. I just want to thank the entire management of Ratnamani Metals for patiently answering all the questions. And on behalf of Monarch Networth, I would also like to thank all the participants for joining the call. Manoj sir, would you like to give any closing comments? Yeah, yeah, yeah. So, thank you, everyone. I would like to conclude that I would just like to say that with recent correction of prices, good monsoons, and still no major signs of major demand destruction, our utilization is expected to remain better, and we may remain in our target of growth trajectory, this, which is what, 20%, what we have, we expect, as we've been maintaining over a long period. So we are confident that we will remain around that number. We thank you, all the participants, to attend the call and patience for hearing. Thanks. Thank you, sir. Thank you. On behalf of Monarch Networth Capital, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.