Ladies and gentlemen, good day, and welcome to the APL Apollo Tubes Limited earnings conference call hosted by InCred Equities. As a reminder, all participant lines will be in the listen-only mode. There will be an opportunity for you to ask questions after the presentation concludes. If you need assistance during the conference call, please signal an operator by pressing star then one on a touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Rahul Agarwal from InCred Equities. Thank you. Over to you, sir. Thank you. Good afternoon to everyone on the call. Thanks for joining in. We welcome you all to discuss APL Apollo Tubes' first quarter of fiscal 2024 financial performance of the company. We have with us the senior management of the company, led by Mr. Sanjay Gupta, Chairman and Managing Director, Mr. Deepak Goyal, Director of Operations and Group CFO, and Anubhav Gupta, Strategy Officer, APL Group. I now hand over to management for the remarks. After that, we shall lead to the Q&A session. Over to you, Anubhav. Thanks, Rahul, thanks to InCred Capital for hosting APL Apollo Tubes for its Q1 FY24 earnings call. Thanks to all the shareholders, analysts who have joined this call. We welcome you to our Q1 FY24 earnings call. The Q1 went pretty well in terms of the sales volume as we touched 660,000 tons, highest ever volume for the quarter. This was despite the fact that there was some volatility in the raw material prices. The steel prices globally and in India fell by around 5% to 10%. There was some sense of destocking in the market, despite that, we were able to achieve our quarterly volumes target. Because of because of some destocking, there was slightly slight decline in the EBITDA per ton spreads for the company. We were expecting around INR 4,800 to INR 5,000 per ton, but we ended up having INR 4,600 per ton. Yes, we could have earned extra INR 150 million to INR 200 million in the quarter in terms of EBITDA, but but but now things are back to normal, and we are seeing very good traction in the month of July, and August, September also look promising. We shall be able to we shall be able to make up of whatever we lost in Q1. Because growth in absolute terms for the quarter was up 8% YOY, and so was the net profit, which was up YOY. We have started FY24 on a strong note to achieve our volume targets of 2.8 million to 3 million tons for the full year and INR 14 billion to INR 15 billion of absolute EBITDA, which is our target for this year. Coming to the balance sheet, the working capital days remain good at 6 days, which helps us on our CapEx of INR 1.8 billion, which was pending for Raipur, and to achieve our 5 million ton capacity. We told you that almost INR 5 billion to 6 billion would be spent to finish our capacity to 5 million tons, and out of that, around INR 1.8 billion is spending Q1, and over the next 3 to 4 quarters, we will spend another INR 3 billion to 3.5 billion to complete 5 million ton capacity for the APL Group. The debt was slightly higher by INR 400 million Q to Q, we ended with INR 2.8 billion of net debt, but it should start coming down as now Raipur is starting up and the operating cash flows remain strong with 6-7 days of working capital cycle. Apart from this, just to talk a bit on our Raipur plant, 1 million tons of capacity which we added, out of this, 600,000 tons is fully operational, which is divided into 2 segments. One is the heavy structural tubes, and second is coated products. Our narrow throughput section of 400,000 tons, this will be starting over the next 1 to 1.5 months, where just 1 line of organization is 100%. Once it starts, it will, we will, we will kickstart this 400,000 tons of plants, and this will give us incremental volume over the next 2 to 3 quarters. In the quarter one, we did around 75,000 tons of volume from Raipur, and if you annualize this, the utilization levels remain at 30%. In Q2, this will ramp up to 100,000 tons, and then 150,000 in Q3, and eventually 175,000 to 200,000 tons by Q4. We do believe that Raipur will be able to do around 500,000 to 600,000 tons for the full year. In Q1, the EBITDA spread from Raipur was around 4,000%. The gross spreads are pretty good. It is just that the utilization level was 30%, so that's why EBITDA concern is 4,000%. Otherwise, otherwise, based on our gross margin spreads, it is that INR 6,000 to 7,000 per ton kind of stabilized EBITDA spreads from Raipur look very, very promising. As we are talking about Raipur, which is which is our innovative products, the market creation also becomes very, very important. Glad to share that for the heavy structural segment, for the heavy structural segment, with the market creation efforts, we have got now more orders for the railway stations, for high-rise buildings, some of the live sites we have shown in our presentation as well. The conviction and confidence remain very high, that with our products, we are going to revolutionize the construction industry. These new products will help us achieve our volume targets over the next two to three years. Apart from that, the focus on other value-added products, like products, the distribution of those products have started, and there is good full demand from our distributors, which carry high EBITDA spreads. This gives us confidence that we should be able to ramp up our Raipur plant to 500,000 to 600,000 ton this year, and eventually 1 million ton by FY 2025 or 2026. Further updates on the capacity addition to achieve 5 million tons, just to give you of new incremental capacity which is coming. Raipur, we're going to add 300,000 ton, over 1 million ton. 0.3 million ton is coming in Dubai, 0.2 million ton is coming in East India. Around 0.6 million ton, we are going to add brownfield, we are going to add a brownfield capacity in our existing plants. So with this, we will be a 4 million ton capacity company. And we should be able to utilize this capacity by FY 2026. So, so that's our vision statement on 2025, that we will be selling this much of volume, with higher EBITDA spread, than 5,000 per ton, which is equivalent to ton. So that's it from our side, Rahul, and we can open the floor for Q&A. 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 the touch-tone telephone. If you wish to remove yourself from the question two, you may press star and two. Participants are requested to use answers while asking a question. Ladies and gentlemen, you will wait for a moment while the question queue assembles. Our first question is from the line of Amit Dixit from ICICI Securities. Please go ahead. Yeah, hi. good afternoon, everyone, and thanks for the opportunity. I have a couple of questions. The first one is on the narrow capacity ramp up in Raipur. While in the second mark, you indicated that it is going to be started shortly. Can you give us a sense of timeline on the capacity ramp plans that you have mentioned? I think it's more like Q4. How do we look at the trajectory in Q4? More importantly, will we hit 6,000 or 7,000 in Raipur in Q4 itself, or we still have to wait till 2025? Coming to the first question, which is around the narrow line in Raipur. I mean, this is the product which is high thickness coated sheets. It's a big innovation from the house of APL Apollo, because so far, if you see in India or globally, the color-coated sheets which are available are of thickness of 1, 1.2 mm. But we started, we thought that we should be able to produce a color-coated sheet of up to 4 mm thick. So beyond 1.2, which industry has not produced ever. We put the line, and it was started last year, okay? We were buying the galvanized sheets from the, from the industry, and then we were color-coding it, right? That we started last year, and we tested the market because it was a new product, innovative product. The market applications were- Yeah, sorry. Amit, you there? Yeah, I'm here. Yeah. The applications were right, which are used in the in the construction industry, and the solar structures, right? There were, like, various applications which you could see. We tested the market last year, right? And the result was pretty good. The difficulty was that we were buying the galvanized sheets from outside, so the supplier was not stable, right? Anyways, we were going to set up our in-house galvanizing line, right? So that got a little late. We thought we should be able to start in, like, July, August. Now, now it's pretty much on track and end of August, first week of September, we should be filing that galvanizing line. Once this is there, then it's a continuous process where we put HR coil and then we galvanize it, and then we color code it. It will be a, like, full in-house, back-to-back, color-coded sheet. With that, like I said, last year, we tested the market demand, and we are hopeful that the ramp up for this product will be pretty strong, and the utilization level for Raipur will start inching up from 30% to 40%, 50%, 55%. To the second question, it does come from Raipur. See, I mean, if you see that, at utilization levels of 30, 30%, right, we are able to make around 2,000-4,000, right? With 80, 90% utilization, definitely the demand will reach those levels. It will take 2, 2.5 years, right? What we can promise you is that the spreads will continue to improve as the utilization levels continue to go up. Okay, that's very helpful. My second question is on, as I look at the broad EBITDA pattern project, progression in the quarter, from Q4 to Q1, where I see that Apollo V as a group, the EBITDA pattern has declined over, EBITDA pattern has been stable or is up. It is, is it due to only that, we expect that Apollo V is down or it is, is it something else? Apollo V is not being manufactured in Raipur, right? It is, it's a non-Raipur product. This is in our Bangalore plant, right? In our Hyderabad plant in North India, where the maximum production takes place, for Apollo V available. Hello? what explains the EBITDA decline, Q2? Because, this is the only category where we have seen it, mainly. Hi. Good morning, everybody. Obviously, you, you are seeing the decline in the EBITDA pattern in the key product. That product is, have we been discussing from this product from the, the galvanized product. If you see the first quarter, all the steel plants are in the research. Our steel plants, due to almost 5,500% decline in the raw material prices, steel plants were safe bottom fee. They narrow their product prices. This is the impact, margin. If you see the overall margin cover, we turned the volume almost 483,000 from APR, 91,000 tons from AMPL, 86,000 tons from ADPL. Total is 560,660. Raipur plants, ADPL, margin quarter due to there is two reasons behind it. One, full capacity infrastructure setup. Raw material stock level due to the process ramp up. You can say in our language, stock loss. Margin kharche jada the. August ramp up, July ramp up ho raha hai. September full ramp up ho jayega. Wahan ka mala margin aapka wapas utha jayega. If you see the old APR, our volume is 483 plus 91. 574 volume hai, EBITDA INR 330 crore kya hai. 330 divided by 571. Almost the EBITDA margin is 57% into this percent. In spite of the almost 5%-10% raw material prices are declined. I think we are on the track, just a matter of time to APPL ko thoda sa streamline karna hai. EBITDA% hue hai due to the raw material prices which is steel plant ke sabse pressure tha. Unhone apna ye galvanized product ka margins kam kar rakha tha. Okay. Okay. Great, sir. Thanks for the great details. Thank you so much. All the best. Thank you. Our next question is from the line of Aman Agarwal from Equirus Securities. Please go ahead, sir. Thank you for the opportunity. With respect to the upcoming capacities that you mentioned, on the new, new entities in the Eastern India and, ground field expansion-... The VAP expansion that you have mentioned, you know, give us a breakup of which product will be coming up to these capacity? Our plant is starting, we are looking at, right now we are looking for the land. I mean, land we might finalize, but this is a very small quantity of 2 lakh ton capacity. Totally commodity products, the value-added product from Raipur service. Every value-added product plant cost, cost. CapEx, CapEx INR 50 crore capacity. Structure to be complete focus is up to 300 square. Understood, sir. Secondly, on the target VAP share, I think a slight trim down from earlier guidance of 75% to around 70% now. Any particular reason, why we have slightly trimmed down the guidance? Boss, we can't define, narrow margin, define 5% sector, we are in the case of volume. We sell, margin margin. Numbers go up and up. Understood, sir. Okay, sir, lastly, on the margin side, you know, last quarter we mentioned that, you know, with the strong demand pool, we had reduced the channel discounts that we were offering. How was the situation this quarter around on the discount that we offered to the channel partners? July, the market is a very in the process, but August is now stabilized. August, first 7 days is very good. Not good, I can say very good. July, we have done almost 200,000+ volume, and August we are targeting 2.5 lakh plus 2.5 lakh. Totally this quarter, our guidance quarter, 13 to 14 lakh target, which is a margin of INR 650 to 700 crore. We are right on track. Second half, we are targeting for a volume of almost 15-16 lakh ton, with a margin of INR 750 to 800 crore. For overall full year, 28 to 30 lakh ton volume and INR 40 crore. I would, in August, I closely... Understood, sir. Sir, on the long run, guidance, we still maintain on the 1,024 and gradually to around 6,000 by FY 2025 and FY 2026. We stick to that? Of course. I'm a promoter. I always bullish on my numbers. I have done, I, I believe I'm looking, I'm not satisfied with INR 6,000, INR 7,000, INR 8,000, my target is very clear. Right now, the positions are we have to slowly and slowly cover up. I think as our Raipur will be ramped up in the second half, completely. Because in August, our last machine was started, narrow line. The margin INR 6,000 should be stable from Q3. Overall, our demand is also good, as our projects, almost we have done drawing, designing on 300 projects. As the demand creates only, these two things are our key factor to increase our margins. Understood, sir. Thank you, Lord. Thank you so much, sir. Thank you. Next question is from the line of Sneha Talreja from Edelweiss Securities. Please go ahead. Hello, first. Hello, sir, and congratulations for strong volume. Just two questions from my end. One is related to your new Raipur facility. You are going to add further 0.3 million tons. Where are you adding this and which product profile? Also, if you could give some breakup of the current profile, you are manufacturing 3 structures. Which one of them is, you know, right now going where, and what's the utilization rate amongst these products? Are we selling more of air and meter products or other products? Where are we in each of these products that I would want to know? Thank you, Sneha, for the question. First of all, you have to understand what is Raipur. In Raipur, we have 3 seg, 3 segments. One segment is, we call HSU segment. We, we, we are making, sections. Almost 3-4 lakh ton capacity. 3 lakh ton capacity. 1,000 sq meter is already there. there. After that, the capacity will be 4 lakh ton. The second, our complex is wider. In this our capacity is 3 lakh ton. This is almost on full run rate. Third is our narrow section, whose capacity is 4 lakh ton. 1.2, yeah, 3 + 4 + 1. Our HSU is 4 + 1, 5 lakh ton capacity total. This total capacity is 12 lakh ton. In this 4, our HSU capacity already is on swing, wider is 3 lakh ton on swing. This narrow section is completely ready, just the rising line is yet to start. Our 14th August it will start. In this, our total HSU section in the last quarter is bigger. In this, as the demand ramp up, our sale will ramp up, which will be in this quarter almost bigger section of total 50,000 tons. This year almost some 13, 16,000 tons of forms have come. This quarter we are targeting to achieve 20,000 tons per month. Wider mala is running completely. In In this, we are doing 20,000+ volume already. Number 3, narrow section. Narrow section we have two parts. One is flat product and one is tubes. Tubes, our capacity in this is 25,000 tons. In flat product 5,000 ton is color and 5,000 for, for 5,000 ton is color, which will be used in PV and 5,000 ton is GP, which will be used in our PV. Total capacity is 35,000 ton. Tube, if we define the tube section by section, then in that 3,000 to 4,000 ton color tube is ours, 7,000 to 8,000 ton is our pre-galvanized tube, which we call Jet category. Apollo Jet and 3,000 to 4,000 ton is our CRC automatic tube and 3,000 to 4,000 ton is our cold-rolled full harder, lighter tube. Understood, sir. Thank you a lot for the elaborate answer. sir, one more thing is, like last quarter continued prices were falling. How is the channel inventory at this point in time? Last time you had tried to get inventory for 15-20 odd days. Where is it now? Channel inventory is almost blank, it is empty. There is a very good symptom of demand creating, although there is a monsoon time, but good demand is being created from August. Okay, sir. Thanks a lot for your participation. All the best. Thank you. Our next question is from the line of Jatin Damania from Kotak. Please go ahead. Sir, thank you for the opportunity. Sir, one thing I wanted to understand, now, since we are saying that right now INR 67,000 per ton, once you ramp up our capacity to 1 million ton, I just wanted to understand while for 2025 we are giving a guidance of near about 2.5 something. Which segments and which all segments will drive the higher data? Thank you, Jatin, for coming on the call. We are targeting for INR 2,500 crore data. We are right now three company we are running. One is APL, one is NPL, and one is ADPL. NPL is actually almost 4 million, 400,000 ton. In APL, we are going for 20, 1,200- INR 2 million. 1.2 million tons, so 16. Dubai is 300,000 tons, and the rest is 18. 16, 3.1 million tons is APL. Our total capacity out of 8 million tons, APL is 3,100 tons, 31 million tons. NPL is 0.4 million. 3 million tons is NPL Apollo MetalX, 1.2 million tons is ADPL, and 0.3 million tons in Dubai. My, my target is INR 10,000 per ton in Dubai, almost INR 300 crore. ADPL, I'm looking at least, at least EBITDA of INR 7,000-8,000 per ton. If I take INR 700-840 crore from ADPL. APL, we are running same sales, INR 8,000 a ton EBITDA, it's almost close to INR 400 crore. APL, I think, in INR 4,500 per ton is the EBITDA margin. 3,100 into 4,500, INR 1,400 crore. 14 plus 4, 60 plus 8, 26 plus 3, almost we are targeting for INR 60,000 crore of EBITDA. Certainly, we are talking INR 3,500 crore of EBITDA. Okay. Sir, thank you for the explanation. Thank you, sir. Thank you. Our next question is from the line of Vikas Singh from PhillipCapital. Please go ahead. Good afternoon, sir. Thank you for giving me the opportunity. Sir, I just wanted to understand this 5 million ton capacity we are talking about, what is the volume and value addition which we would be doing, considering that once we start using our SGUs, usually the utilization rates, seems to usually be ranked, so if you could give us some insight into it? Our value add product is almost close to 3.5 million ton, commodity product is 1.5 million ton. Roughly about 70% would be the value addition. What is the sales volume we are targeting? 5 million tons? Full 5, Vikas, sellable capacity what we are talking about? Understood. The actual capacity would be higher than that. Sir, whatever you say, the actual capacity is what you are producing. When you put it like a same capacity, 5 to 5. You may, you may say 10% higher, 5.5 million tons. Yes, sir. My second question, sir, is railway revamping plan. Now that the country seems to be pretty large. Wanted to understand where we are placed, how big this opportunity could be for us, and whether we are already in place to gain this or place this in time before we can start? Yes. If you look at the modernization of railway stations, there are four structures, okay? One is the station building, which is called the concourse, right? Concourse is a modern structure where there will be platforms on the ground floor, and then on the upper floor, there'll be like retail, office complexes, et cetera, which are which you see in countries outside India. Okay, second structure is the over bridges, FOBs, right? Third is the ceiling roofing trust, right, which is over and above the concourse structure, which covers the complete new building. Fourth are the office complexes, which a lot of the railway stations are having. If you look at our opportunity for Apollo in heavy structures, there are two products which are two applications which are 100% on tubular. One is the over bridges, right? Second is the ceiling, the roofing of the structure. In India, there is like a target of 1,500 railway stations which are going for redevelopment, right? Depending on like some railway station, it will be like 500 tons, some railway station, it will be like 2,000-3,000 tons, depending on, like, how big the station. What we are trying to do is that the bulk of the consumption of steel will be in the concourse structure and the, and the station and, and the office complexes which are nearby. That railways has two options: go for RCC or go for steel. Where the government has approved steel structures, right? There are two options. One is for conventional steel, second is for tubular. Here, what we are doing is that we are convincing the contractors, consultants, who have won the, who have secured the project, right, that we should build that concourse structure and, and office complexes on steel tubes. Glad to share that Tirupati railway station has been approved 100% on tubular. Like, all the four structures are 100% on tubes. Okay? With that, it has opened the, like, I would say, floodgates, right, to go and approach the contractors that whosoever has won the contract, that you please, construct your buildings, your structures on tubes, right? As we speak, there are almost 30-40 projects where we are going and, and talking to the contractors, the consultants and authorities, right? Just to a number, like New Delhi railway station, you can see the standard document, right? Right now it's under building. It will have at least 20,000 to 22,000 tons of tube consumption. Other than that, like, whether it is Mumbai, Ahmedabad, then 1,497 other small cities where these railway stations are upcoming. For this, it throws a huge opportunity to supply, to create market and supply our products. Understood. All this could be value-added segment, right? Heavy to super heavy structure, right? Yeah, heavy and super heavy, that is right. Yeah. Thank you. That's just my question, and all the best for you. Thank you. Our next question is on the line of Aditya Welekar from Axis Securities. Please go ahead. Yeah, thank you for the opportunity. Just, I want to confirm, I have it heard it right. For FY 25, we are targeting a sales volume of 5 million ton, right? 25, 26. Yeah, that's 25, 26. This year we are targeting 28 to 30 lakh ton. Next year, we are targeting 36 to 40 lakh ton. 2025, 2026, we are targeting 46 to 50 lakh ton. Understood. Understood. My next question is, in this quarter, have we taken inventory loss? Is it due to the drop in the secondary steel prices? If yes, currently, what is the split between primary and secondary? After a long battle, now Apollo come out with this inventory loss and gain position. unsold material, INR 70,000 to 80,000, 70,000 to 80,000 material. You like can say 70,000 tons into INR 5,500 price drop wise quarter. INR 38 crore technically, inventory loss but now we count it because this is on our full business, this is very less. Almost all material covered होता है. ये अपने ये एक पैर के साथ तो अब हमको हमारी बुक्स में उतना कोई inventory loss या profit loss आपने देखा होगा. 2 साल से कोई impact नहीं आ पा रहा है. जब से हमने branding अपना distribution को strong किया है, उससे पहले हमको inventory loss जरूर impact आता था. We are come out from this. थोड़ा बहुत हमको जब channel stocking हो रहा होता है तो हमको थोड़ा एक्स्ट्रा मार्जिन देकर माल push करना पड़ता है. उसका थोड़ा बहुत impact और भी. आप INR 10-5 crore का impact और मान सकते हैं. अगर इस quarter में inventory loss नहीं हुआ होता, हमने price नहीं drop हुए होते तो हमारा business अभी INR 375-380 crore के आसपास होता. अंडरस्टुड सर! नेक्स्ट इज व्हाट इज आवर कैपेसिटी आईडेंटीफाइड ट्वेंटी फाइव फॉर ट्वेंटी फोर माइंड सिक्सटी stod million तो विल दैट बी एनफ। कैपेक्स जो फाइव मिलियन को अचीव करने के लिए ऑलमोस्ट थ्री हंड्रेड करोड़ के आसपास स्पेंडिंग रह गया है। मे बी टेन ट्वेंटी करोड़ प्लस माइनस पाँच परसेंट प्लस माइनस। इससे हमारा फाइव मिलियन का पूरा कैपेसिटी हमारा पूरा पूरा हो जाता है। अभी हम डेढ़ साल अभी कोई कैपेक्स प्लान में नहीं है। ट्वेंटी फाइव दिसंबर से जहां पर हमारा वॉल्यूम फोर मिलियन क्रॉस कर चुका होगा, वहां से वी हैव रोड मैप प्लान फॉर अनदर फाइव मिलियन कैपेसिटी फॉर नेक्स्ट फाइव इयर्स अप टू दो थाउजेंड थर्टी, को दो हज़ार थर्टी में हम कैसे ये टेन मिलियन टन तक लेकर जाएं। इन दिस प्रोसेस आई थिंक हमारा नेक्स्ट कैपेक्स राउंड शुरू होगा। ट्वेंटी ट्वेंटी सिक्स जनवरी से शुरू होगा। वो लगभग ट्वेंटी सिक्स एंड ट्वेंटी सेवन, ट्वेंटी सिक्स जनवरी टू ट्वेंटी सेवन दिसंबर। हमारा टू थाउजेंड करोड़ प्लस कैपेक्स होगा, जो हमारा कैपेसिटी को एनहांस करके टेन मिलियन टन कर देगा। अंडरस्टुड सर, दैट्स वेरी हेल्पफुल, थैंक यू! थैंक यू। द नेक्स्ट क्वेश्चन इज फ्रॉम द लाइन ऑफ लावण्या तोताल फ्रॉम यूबीएस। प्लीज गो अहेड। हेलो, थैंक यू सर फॉर द ऑपर्च्युनिटी। सो आई जस्ट वांट टू अंडरस्टैंड द ऑपर्च्युनिटीज दैट वी आर सीइंग फॉर हेवी स्ट्रक्चरल। व्हेन शुड वी स्टार्ट रेलिज़िंग द इम्पैक्ट ऑफ दिस ऑन द वॉल्यूम और इन द कमिंग क्वार्टर्स हाउ डू यू सी दैट एंड रेलवे स्ट्रक्चर बिजनेस व्हिच यू आर हाइलाइटिंग, दैट विल बी द प्राइसिंग डिफरेंस फॉर कॉन्ट्रैक्ट टू यूज कन्वेंशनल स्टील वर्सेस ट्यूबुलर स्टील विल बी एनी बेनिफिट ऑफ यूजिंग ट्यूबुलर ओवर कन्वेंशनल स्टील फॉर रेलवे, विच इज एनराई। थैंक यू लावण्या। इफ यू सी आवर नंबर्स लास्ट क्वार्टर वी आर डूइंग हेवी सक्सेस। में में कितना था? 41 था। Last quarter हमने Q4 में हमने 40,000 tons के आसपास किया था। Q1 में हम उसको हम 3,000 tons पर आ गए हैं। देर 2 types of growth coming in the sections, one from the projects जहां पर हमारी design team काम करके design pass करा रही है and वहां से धीरे धीरे inquiry generate होगी। दूसरा from the retail also, जहां पर अभी उसके replacement में angle channel, girders, RCC सब use होते थे। तो इसमें हमारी problem क्या है कि right now this product is not in the market. Now slowly and slowly the architect and all the consumers are knowing कि we can switch to 500 square, 400 square, 600, 300, 600 by 200. उनको जैसे जैसे knowledge मिल रही है, तो I am seeing the trend from the market. ये retail से ही हमारे पास demand आ रही है। तो I am very hopeful कि year-on-year इस product में हमारा 40%-50% का growth आना चाहिए। सर, रेलवे, कन्वेंशनल स्टील वर्सेस ट्यूबुलर स्टील, हाउ इज द difference? देयर इज नो सच एंड सच। हमारी टीम बोले, आई एम नॉट कन्विंस विद द टीम। हम उस पर डिजाइन पर काम कर रहे हैं और काफी जगह से हमको पॉजिटिव रिस्पॉन्स मिला। लाइक अपने मैक्स हॉस्पिटल का नाला नती हॉस्पिटल में फर्स्ट पूरा कर लिया है। हमने अभी तिरुपति रेलवे स्टेशन पर टू थाउजेंड टन मटेरियल सप्लाई किया है। इस टाइम से ऑलमोस्ट मैंने देखा है कि हमारी जो डिजाइन टीम ने जो काम किया वह ऑलमोस्ट टू हंड्रेड थाउजेंड टन के आसपास डिजाइन पर किया गया है। वो प्रोजेक्ट ठीक होते हैं। एक दिन मे बी उतना कन्विंस नहीं होता। स्लोली स्लोली रैंप अप होगा। दिस इज नॉट ए राइट, कि मैं अपने आपसे कमिट करूं कि आपको इस साल दस परसेंट ग्रोथ आएगी। मे बी यू सी इन एनी क्वार्टर ग्रोथ फिफ्टी परसेंट। दिस ग्रोथ प्रोजेक्ट। बट वी आर वेरी होपफुल। जहां पर भी जितने भी कॉन्ट्रैक्टर से एंड कंज्यूमर्स हैं, वे आर वेरी वेरी बुलिश ऑन दिस प्रोजेक्ट और प्रोडक्ट। तो अगर आप वर्ल्ड देखोगे यूएस, चाइना एंड यूरोपियन कंट्री, वहां पर इसकी डिमांड नॉर्मल से ज्यादा है। सो वी आर वेरी होपफुल, होपफुल कि इंडिया में डिमांड बहुत जल्दी पिक अप करेगी। देयर इज नो सच दैट वी कैन कमिट टू कमिट कर सकते हैं कि आपको क्वार्टर बाइ क्वार्टर डिमांड दे देंगे। एंड जस्ट टू ऐड दैट ट्यूबुलर स्टील इज टेन टू ट्वेंटी परसेंट लाइटर दन कन्वेंशनल स्टील। ओके, गॉट इट। सो कॉन्ट्रैक्टर दैट वी आर वर्किंग ऑन, दीज आर ऑल स्मॉल कॉन्ट्रैक्टर और वी आर इन कॉन्ट्रैक्ट विद सम लार्ज ईपीसी कॉन्ट्रैक्टर्स ऑल्सो। वर्किंग विद कॉन्ट्रैक्टर रेंजिंग फ्रॉम लार्सन एंड टुब्रो टू अलोदिया, टू सैम, टू नागार्जुन, टू अशोका बिल्डकॉन, टू स्मॉल कॉन्ट्रैक्टर्स। ... so all types of contractors, because our structure can be used to make a small hut. It can be used to create a hotel. Irrespective of the structure, any ETC contractor who is doing this structure, we reach out to him. Got it. Got it. Thank you. Thank you so much, and all the best. Thank you. Our next question is from the line of Mr. Rahul Agarwal from InCred Equities. Please go ahead, sir. Yeah, hi. Thank you for the opportunity. Just one question on the net debt for this INR 284 crore for the quarter. Can I get the gross debt and the gross cash number, please? Yeah. Just a sec. INR 950 crore gross debt and INR 650 crore is the FDR. ... INR 950 crore is our gross debt, and INR 650 crore is our FDR. Okay, thank you, sir. One, why I was asking this was, there is one trend which I'm observing that quarter-on-quarter, the finance costs both are rising, you know, sequentially over the last two to five quarters. Why should this happen? Rahul, this is because of the APL or APL. These two cash positions are coming. Here, both of them, whatever cash plus is coming, we are making FDR. In ABPL, we have infused equity of INR 600 crore. We have infused INR 600 crore equity there. The money that is there, we are taking debt there and doing it. Our target is that we have taken INR 300 and doing it. Our target is that we have taken INR 300 as our interest, within three years we have to bring that money back. Understand, sir. Understand. Understand. You know, the second question was on the state incentive. There was a press release on the exchange which talked about incentive for the Raipur plant. There was quite a few questions there, largely wanted to understand, is it only applicable to sales done with the distributor? Do we have to assume 75% of 9% savings of state GST? Because it says 75%. This is, this is a state incentive to Raipur, the state government has given us an incentive to set up a plant in the state. INR 500 crore is already allowed to us. INR 500 crore, our site process is going on, which we will get more. Next year, our GST amount is already pending there. First we will consume that. Whatever local sale of GST is happening there in Chhattisgarh, we will get 9% reversal of that. Sir, this 9% is 75% taken, right? Yeah, 9% of 75%. Yeah, you are right. Okay, okay. GST is charged, its local GST is 9%. 9% of 75%, this is almost 6.75%. Whatever we sell locally in Chhattisgarh state, we will get it back in full. Understand, sir. What would be like a tentative sale volume number for Chhattisgarh? How much absorption can happen in it? INR 50 crore, you will get the incentive for the whole year. Okay. INR 500 crore is the total, INR 50 crore per year, so it will end in a year. Is that correct? It will end in a year. Exactly. No, INR 1,000 crore is the total. The remaining INR 500 crore- INR 500 crore is still left for us to get, according to our total capacity. We have got this first phase capacity. Another INR 500 crore, we already applied. Sir, what is that regards to? Phase two in next term. We have total investment in Raipur is around INR 200 crore. Out of that, INR 840 crore, capacity of government is, allowed INR 500 crore of the incentive. Second phase, we have under process to apply. Okay. I get it. In terms, Deepakji, just in terms of accounting, this will come as other income in the books of accounting. Yeah, other income. Sir, whatever other income happens, Rahul, now look, we are not able to present the number properly. The reason behind it was that I was on leave. If you look at our we are not able to present the number properly. The reason behind it was that I was on leave. If you look at our we are not able to present the number properly. The reason behind it was that I was on leave. If you look at our numbers for this quarter also, our APL volume is 483,000 tons. 91,000 ton is our volume of AMPL. Total our volume is 574,000, APL and APL. ABPL volume is 86,000 tons. If ABPL's EBITDA this quarter was 0 almost. INR 3 crore. INR 3 crore EBITDA was there. If you look at us there. If you look at us technically, our old EBITDA is INR 6,700 crore, which you are seeing as INR 4,600 crore. The other income, which is interest, in that also our mature part, which is apart from interest, is of export incentives. This is our business, business income, but you can add it however you want to add it. Understand, sir. Understand. I'll talk Understand. I'll talk in with you. Thank you for hosting, giving permission to host the call. Thank you. Thank you, Rahul. Thank you. Thank you. Our next question is from the line of Kunal Kothari from Centrum Broking. Please go ahead, sir. Yeah, thank you so much. wanted to understand the electricity part. Right now, it is at 3.6 million tons. Can you give us a timeline about how much electricity will be added when, and it will get commissioned, till 5 million tons? ... up to March 2024, we will be completing our capacity to 5 million tons. You mean 5 million will be completed in April 2024? Yeah. Okay, okay. What will the- Once Siliguri, once Siliguri plant is not completed by March 2024, that is, you can say 4.8 million ton. Okay. On the brownfield expansion on the existing plants, can you elaborate, like, in what kind of products that we are expanding earlier? If you believe that the brownfield expansion was about 3 lakh ton, which you are expanding to 6 lakh ton the existing capacity, right? Here, 300,000 ton is coming from New Raipur, right? From 1 million ton it is going to 1.3 million ton. There are 11 plants which are in APL Apollo which are running, right? Apollo Matrix also 100,000 ton will be added from 0.4 million ton to 0.5 million ton. In other 10 plant, there will be like small, small brownfield expansion which will take place, right? Put together, put together, 0.4 million ton from the existing plants. In due course of time will have, in March and like some capacities will come in, giving in, right? That's right. So- Except, except East India plant, we target to complete whole brownfield, greenfield expansions by March 2024. Okay. Thank you so much. Thank you. Our next question is from the line of Madhav from FIL. Please go ahead. Hi, sir. Thank you so much for your time. Sir, just wanted to update you water tank. We could not put it up on. Madhav, we did one, we did one sample early this year, right, near Lucknow. That, that sample got approved. Based on that, there is another small order of for 50 water tanks, which the government has approved as of now. The work on those 50 water tanks will start. As, and as we are talking, we are also talking to lot more contractors and authorities to take this number to higher, right? One thing is for sure, that the government authorities have given their approval, right? Slowly, they are starting. It's a very new thing for them, so, so they are taking some time. But, but our design, our sample, everything has been passed by the authority. Now the question is that, from 1 to 50, how do we move from 50 to 5,000, 10,000, right? That also is undergoing. Which again has benefit from, like, lower cost of construction and support? Compared to RCC, steel is always expensive, right? It is slightly expensive, but the time taken, normally an RCC water tank takes 6 months to complete. Steel, end-to-end can be done in 2 to 3 months. Almost 3 to 4 months. Three to four months. Okay, thank you. Thank you. Our next question is from the line of Dhananjay Bagrocia from ASK. Please go ahead. Congratulations on a good set of numbers. Just 2 questions for now. Employee expenses and other expenses have been trending lower per ton. Is this something which we see even more so from here, or would this flatten out, going ahead? Dhananjay, what cost are you mentioning? Not over some time. Mr. Dhananjay, may we request you to repeat your question, please? Good morning. Hello, can you hear me now? Yeah, Dhananjay, yeah. Please, please go ahead with my question. My part good. Tell me, tell me. Sir, employee expenses and other expenses per ton, year-on-year has been reducing quite a bit. Is this something which we see even more competition or is it something which will be flat going ahead? Dhananjay, what we are saying is, INR 900 per ton, it looks, it appears lower than INR 1,000 per ton, but we are not satisfied with INR 900 per ton. This, our target is to bring it down below INR 700 per ton. INR 600 per ton. INR 600 per ton. This I promise you, when we reach the 5 million tons of capacity, the employee cost is come down from INR 600, less than INR 600. Okay, sure. Other expenses be? Other expenditure, you have to look at, because what is sales- Sales will stay with sales. Sales, sometimes some trade factor comes more, export or copper comes, it varies according to that. In our business, there is only four type of expenditure. Yeah. One is the employee cost. Number two is store consumable, which is again varies from INR 250-INR 300. Mm. Number three is power. Power is around 50 units, 50 units into INR 80 unit per ton. It varies around INR 400. Mm. INR 400-INR 400, maximum higher side, it goes to INR 500, low side it remains between INR 400. Mm. I'm working on this thing, to bring the consumable below INR 200. I am working to bring the employment cost below INR 600. I am working to bring the power around INR 400 from INR 500. One major factor we are working on, the freight factor. Freight factor, now our cost is INR 1,400-INR 1,500 per ton. Now, I'm trying with the EV vehicles. If my EV vehicle model becomes successful, so I, I bring down this freight cost to INR 1,500 to INR 1,000 per ton. Almost INR 1,000, my target is in the next two years, to reduce my expenses. Okay. Very good, Okay. Very good, sir. Sir, in this year, what will be the full CapEx number value? INR 300 crore, the balance we have three quarters. Yeah. Maybe INR 20 crore less, because we have only one plant this year. INR 275-INR 280 crore, less than INR 300 crore. 1 with the 180, and then 250, maybe in 9 months. Okay. Thank you, sir. Thank you very much. Thank you. The next question is from the line of CA Garvit Goyal from Envest Analytics. Please go ahead. Hello. Good afternoon, sir. Am I audible? Yes, go ahead. Yes, sir. My question is clarification. In the presentation, you mentioned within 2025, doubling of revenue will be in the FY 25 or by FY 26, because in earlier- We say calendar 2025, which is March 26 of this year. Understood, sir. Sir, Sir, one more clarification on the market share: What is our market share in the overall sector into industry of ATGS? I think you mentioned in the earlier one, sir. If you look at the current trends, right, we believe that our market share is above 60%. Okay. In structure steel tubing, which comprises of sizes from 8 by 8 mm clear and goes up to 1,000 mm clear. Here we should be above 60%. Understood, sir. EBITDA per ton is in, I think, INR 4,000 entirely, right? I told you in the earlier call that my EBITDA per ton for this quarter is INR 5,700 per ton. If you exclude the retail number. Understood, sir. Understood. Thank you. That's my question. All the best for the future. Thank you. Thank you. Ladies and gentlemen, thank you. you. This was the last question of the question and answer session. I would now like to hand the conference over to Mr. Anubhav Gupta from APL Apollo Tubes Limited, for closing comments. Thank you. Thanks, Rahul and InCred, for hosting us, and thanks to all the participants who took out their time, and joined for this call. Hope to see you for the second quarter in 2024 soon. Thank you so much. Bye. Thank you. On behalf of India Equities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.