Ladies and gentlemen, good day and welcome to HEG Limited Q1 FY 2027 earnings conference call. 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 this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Rajesh Majumder from 360 ONE Capital. Thank you, and over to you, sir. Good afternoon, everyone, and welcome to the Q1 FY 2027 earnings call of HEG Limited. We have with us today Mr. Ravi Jhunjhunwala, Chairman, Managing Director, and CEO, and Mr. Riju Jhunjhunwala, Vice Chairman, along with their colleague, Mr. Manish Gulati, Executive Director, Mr. Om Prakash Ajmera, Group CFO, Mr. Ankur Khaitan, MD and CEO, TACC Limited, and Mr. Ravi Tripathi, CFO, HEG Limited, Mr. Puneet Anand, Group CSO. Also on the call are Ms. Neha Rajvanshi, CFO, HEG Advanced Materials, and Mr. Salil Bawa, Group Head, Investor Relations. First of all, sir, congratulations on a very good quarter on the first quarter. Without much ado, I would like to hand over the call for the opening remarks of the management. Good afternoon, everyone, and welcome to our conference call for the first quarter of financial year 2026-2027. The year began in the shadow of an ongoing war in the Middle East, which materially impacted energy prices globally. Besides disturbing world trade and pushing shipping costs disproportionately very high in some cases and also increased transit times. In this backdrop, let me give you a broader picture of the global steel industry and its resulted impact on our company. According to World Steel Association's data, global steel production during the first half of calendar year 2026 showed signs of gradual stabilization, declining by a marginal 0.7% year-on-year to around 931 million tons. This indicates that the contraction is bottoming out and global steel demand is beginning to find its floor. Surprisingly, steel production outside of China remained highly resilient, expanding by 2.1% year-on-year to 431 million tons after many years. This positive momentum in the world steel excluding China represents a supportive demand environment for our products. While HEG does not sell electrodes directly to China, Chinese domestic steel market dynamics continue to influence global pricing. A weak real estate sector in China has forced domestic mills to export surplus production of steel. While Chinese steel exports for the first half of 2026 eased slightly to 55 million tons, which is a 5.6% decline from the peak of 2025. They still remain at historically elevated levels. This sustained export pressure has prompted a broad wave of defensive trade measures, including anti-dumping and safeguard duties across key regions like the U.S., EU, and India. Among key steel-producing regions, India remained one of the strongest performing markets, with crude steel output increasing by approximately 7.1% year-on-year to around 87 million tons in the first half of 2026. This growth was supported by robust domestic demand for infrastructure development, construction, and manufacturing activities. In matured economies, we saw a solid broad-based recovery. Steel production in the United States recorded a year-on-year growth of 6.3% in the first half of 2026 to reach 43 million tons, while Germany's output also rose close to 8% to 18.6 million tons. We also saw an exceptional growth in Vietnam, which surged by as high as 27% year-on-year to over 15 million tons, cementing its position as a major Southeast Asian steel powerhouse. Various changes in the trade policy in several countries and the ongoing geopolitical tensions remain key sources of near-term uncertainty. Changes in U.S. trade policy, including tariffs and several country and product-specific measures, are disrupting the established global trade channels. At the same time, tensions in the Middle East are affecting the oil and gas markets, contributing to severely higher freight and energy costs and creating a challenging business environment across industries. These pressures are also being felt across all raw materials like needle coke and other key inputs in the supply chain, which are gradually getting reflected in our input costs. We continue to manage these developments through operational efficiencies. Despite all this, the medium- to long-term outlook for graphite electrodes demand remains highly positive. Decarbonization policies, including EU's Carbon Border Adjustment Mechanism, CBAM, are accelerating the global shift from carbon-heavy blast furnace steel to lower emission electric arc furnaces. This structural trend is heavily supported by latest OECD steel outlook, which highlights that approximately 71 million tons of new electric arc furnace steel-making capacity is planned globally for completion between now and end of 2028. As graphite electrodes are indispensable for electric arc furnace steel making, these plant capacity additions support a favorable long-term demand outlook for the industry and validate the strategic rationale for our recent expansion from 80,000 tons to 100,000 tons, and a further expansion that we are currently undertaking to reach 115,000 tons, which is on track and should be in operation by early 2028. Against this backdrop, we remain confident of HEG's long-term growth prospects, and we believe that we are very well-positioned to benefit from the continued transition towards electric arc furnace steel making, resulting into increase in demand for electrodes. Our plant, with an installed capacity of 100,000 tons per annum, remains by far world's largest single location plant in the world. Its scale and cost-efficient operations place HEG among the most competitive producers globally. During the past quarter, we operated the plant at an average capacity utilization of more than 90%, reflecting strong operating efficiency, and expect to continue operating at more than 90% in the forthcoming quarters as well. Further expansion that we undertook to reach 115,000 tons is likely to be commissioned by early 2028. This will further increase the gap between our plant and the next two largest plants in the world, which are in the region of 70,000 tons per annum. With our scale, competitive cost position, location, high utilization levels, and expanding capacities, we believe HEG is very well-placed to capture the long-term growth opportunities emerging across the global electrode industry worldwide. Update on demerger, which my colleague, Puneet, is going to do. Hi, good afternoon, everyone. We are pleased to inform you that the composite scheme of the arrangement is progressing very well. The NCLT has received its order, and the company is awaiting pronouncement of the order. The company will provide an update shortly on the timeline of effecting the scheme and the record date. We will also hold an Investor call to explain the HEG Advanced Materials business once the order is pronounced and a copy of it is being received. With that, I will now hand over to our CFO, Ravi Tripathi, to take you through the quarterly financial performance. After which we will open the floor for Q&A. Thank you. Thank you, sir. Good afternoon, everyone, and thank you for joining us. I will briefly take you through our financial and operational performance for the first quarter of FY 2026-2027. We have begun the financial year on a strong note, delivering a meaningful improvement in profitability despite a marginal decline in volumes. The quarter demonstrates the strength of our operating model, supported by improved realization, driven by product and geographical mix, disciplined cost management, and continued focus on operational excellence. On a standalone basis, revenue from operations increased by 11% on year-on-year basis to INR 681 crores, compared with INR 613 crores in Q1 of the previous year. Total income also increased by 11% to INR 731 crores from INR 660 crores. On a consolidated basis, revenue from operations also grew by 11% to INR 681 crores, while total income increased by 8% to INR 724 crores from INR 673 crores in the corresponding quarter of the last year. Standalone EBITDA increased by 38% on year-on-year basis to INR 211 crores from INR 154 crores, with EBITDA margins also improved to 29%, compared with 23% in the corresponding quarter of last year. At the consolidated level, EBITDA increased by 17% to INR 194 crores from INR 166 crores, while EBITDA margins improved to 27% from 25% of the last year. Standalone profit after tax increased by 53% on year-on-year basis to INR 110 crores from INR 72 crores, while consolidated profit after tax increased by 23% to INR 122 crores from INR 100 crores. Capacity utilization during the quarter stood at 90% +, which is marginally lower than the corresponding period of last year. However, the impact of lower volumes was more than offset by better realization, improved operating efficiencies, and effective cost management, resulting in a healthy expansion in both margins and earnings. Sequentially, the business witnessed a strong recovery compared with the previous quarter. Standalone revenue increased by 13% over Q4 FY 2025-2026. More importantly, the standalone EBITDA improved from a loss of INR 126 crores in the previous quarter to a positive EBITDA of INR 211 crores in the current quarter. Standalone profit after tax also recovered from a loss of INR 163 crores to a profit of INR 110 crores. Similarly, on a consolidated basis, EBITDA improved from a loss of INR 108 crores in Q4 FY 2025-2026 to INR 194 crores, while profit after tax improved from a loss of INR 119 crores to a profit of INR 122 crores. In previous quarter, the loss reported due to MTM loss in foreign equity investment. Our balance sheet continues to remain one of our key strengths. The company remains debt-free with no long-term loan borrowings, and our treasury is today approximately INR 858 crores as of 30th June 2026. This strong liquidity position provide us with the financial flexibility to pursue future growth opportunities while maintaining resilience across business cycles. Overall, we are encouraged by the strong start to the year. While the external environment continues to evolve, our focus remains on enhancing operational efficiency, maintaining cost discipline, strengthening our competitive position, and creating sustainable long-term value for our stakeholders. For a more detailed discussion on the quarterly performance, I would request you to refer to the investor presentation, which has been uploaded on the company's website as well as Bombay Stock Exchange. With that, I would now like to hand over the call over to Q&A questions. Thank you. Over to you, ma'am. 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 Amit Lahoti from Aditya Birla. Please proceed. Thanks for the opportunity. My first question is on revenue mix. How much was the share of Middle East in Q1, and to which region did we divert lost volumes? Sorry, Amit, can you repeat this for us? Actually, the voice wasn't quite clear. Please repeat it. Yeah. My question is on revenue mix. How much was the share of Middle East, and to which region did we divert lost volumes due to war? Sir, your voice is not clear. I have understood the question anyway. We understood the question. Amit is asking what was our share in Middle East. See, over the years it's around 20%, and it hardly matters because we are so well diversified across countries that some temporary delay in shipping, et cetera, was easily spread over to the rest of 30 countries we operate. Okay, sir, did we not lose any volumes in Q1? No, we didn't lose any volume. As you can see, we still operated in excess of 91%. My second question is on implied price realizations, which I calculate using your revenue and the volumes. It appears that the benefit of any recent price hike is yet to flow into earnings. How much of price increase can we expect in the coming quarters? See, for companies like us in this electrode business, normally you're always booking three, four months ahead. Whosoever is announcing a price hike, we have to start raising prices, will only happen October onwards, because we anyway committed up to September. Whatever price hikes which will come in, will come in later, will actually start showing up later in the year. However, in our existing markets, whether it's India or elsewhere, whatever new business we are booking are at higher prices. We continue to gradually raise prices as our input costs are increasing and also the input prices are increasing. Okay, thank you, sir. Thank you. The next question is from the line of Ahmed from Unifi Capital. Please go ahead. Thanks for the opportunity, and congratulations on great set of numbers and execution in the tough environment. Same follow-up question to what Amit was asking. We have had 20% roughly volumes from Middle East market over the years. Can you elaborate a little bit which markets we have diverted those volumes to, where you see the better demand and has absorbed your balance volumes? Also, you can quantify, if possible, how much the Middle East volumes have de-grown by. Amit, it is not the right forum to talk of in so much of details. Obviously, it is a listed company. We have competitors all over the world. We should not be divulging these kinds of numbers. Suffice it to say that our exports continue to be in the region of 70%-75%, which has been the case for not now, but last 25- 30 years. We are practically exporting our electrodes to each part of the world. To the smallest countries sometimes in Africa, to Latin America, to the largest consuming country, which is U.S. and Europe. More than that, we should not be talking in public about how much we are selling to whom, how much has our market share come up or come down. It happens from quarter- to- quarter. It is nothing so special about this particular quarter. The world is large enough to take a small piece of drop in one region to some other region. Sure, sir, I understand it. The question where I was coming from was if you look at whatever the regulatory action being planned in the U.S. market, so in terms of both CVD and AD, so in that case, what rate in your internal assumptions you would have considered so that the U.S. volumes for us continue to hold or grow? My question was coming from that angle. Okay. Let me try and take this question. See, first, when we talk about Middle East, we are not talking about one or two countries or Strait of Hormuz or whatever. We are talking about the bigger MENA region, Middle East, North Africa. Only three, four countries are impacted. The rest of the business is still ongoing, and they are just postponements. Of course, if they do not take it this month, they will take it next month. There is no connect between this and the U.S. business per se. The CVDs and ADs which you are mentioning, that thing will keep on going, and we will see what results come, and we will see. Right now, of course, as Chairman said, we are very well diversified markets. It remains to be seen. Maybe we will come to know around September what was the final result of the CVDs and anti-dumpings. In terms of the pricing, obviously you would have had some all committed volumes, and you are saying from October onwards there will be price hike. There will be, I am assuming there will be proportionate hike in the needle coke as well. How will you assume in terms of your net EBITDA expansion, whether the price hike will be much higher than the cost increase we have seen? Any sort of sense you can give? You see, we have seen two of our colleagues announcing fairly steep increases. The American company and a Japanese company. Obviously their costs have also gone up, so have our costs gone up. I think one of them has announced a price increase of between $600-$1,200, depending on the size and quality. The other one has given one number of $930. They have just been talking about these in the last six, seven weeks. As Manish said, we are more or less booked. Each one of us is more or less booked at least for the next one quarter or two quarters. The trend is a very favorable trend that it had to happen in any case. The world has seen so many different kinds of problems relating to several price increases in raw material, oil, shipments, this, that, like anything else, prices are going up for everything. We will obviously follow, and we are following. There are only three, four of us in the world. Two of them have already announced their intent. They have given the numbers. They are all available in the public domain. Apart from these two, three companies that we spoke about, then there is only we and our Indian colleagues. Obviously, we will follow suit. Nothing substantial is going to happen in the next one quarter or next two quarters, because more or less, everybody is booked more or less fully. If not fully, more or less fully for the next two quarters. Sure. So is the case with our raw material. Whatever prices of raw material will go up, like needle coke and all, the impact of that product will only come by November, December, January. Everybody is covered or everybody has ordered needle coke at the old price. Sure. Just one accounting question. If I look at our other income number that's close to INR 43 crores, there will be about INR 7 crore-INR 8 crore interest income, which you have disclosed in the segmental numbers. CFO, sir, if you can explain what the balance component is. Is it forex gain or anything else? It is the fair valuation gain on the investment side. The second part. Sorry, can you come again, please? There's a fair valuation gain on the investments. Okay. Sure. Got it. Thank you so much. I have few more questions. I'll come back in bit. Thank you. The next question is from the line of Akhilesh Kumar from Emkay Global. Please proceed. Thank you so much for the opportunity. First of all, congratulations on the good set of numbers. I have a couple of questions. My first question is on the EAF capacity commissioning. We were talking about 30 million tons of capacity commissioning in CY 2026. Now since 1H is already passed, so how much of that has already been kind of commissioned or what's the status on that as of now? You see, a lot of this has been in operation. Balance is going to be in operation in the next two, three quarters. We are tracking each and every new facility. Whatever we have been talking about in terms of new capacity for last two years, we are very happy to say that they are all happening. These are all $1 billion, $2 billion kind of a greenfield expansion. Couple of weeks or couple of months delay or in some cases early implementation is very practical. Between 25 million-30 million tons has already come in in the last three, four, five quarters. From all our conversation with our existing customers and from whatever we hear from the market, we are seeing that whatever numbers that we have been talking about new electric arc furnaces coming up in the next two, three years, and then let's say in 2029-2030, is more or less correct. We could be out by 10%, 15%, 20% plus minus here and there. They are all on the anvil and they're all coming. Right. Is it fair to say since in 2025, close to 18 million tons of capacity got commissioned. So far, stuff should be somewhere around 8 million-10 million tons already been commissioned now? Yes. Between these two years, 2025 and 2026. Sorry, 2024 and 2025, about 20 million metric tons- 21 million metric tons has certainly come up. I have the name if you'd like to know offline. In these three years, 2026, 2027, 2028, we're talking about almost 60 million metric tons to come. During the year, half year is gone by, I think 8 million metric tons-10 million metric tons has already come up. If you really want, really very interested in knowing which customer where, I'll be happy to provide, but offline. Sure. Thank you for that, sir. My second question is on price hike. there were lot of concerns which were coming up regarding the GrafTech's price hike, that it is not getting absorbed in the market. what's the status on that since now Tokai Carbon has also come up with the price hike. How does the situation improves for us from Q3 to Q4? Do we see that sustenance of price hikes in further years also, FY 2028 and FY 2029, for example? Shri, we would not like to really comment upon the GrafTech and Tokai pricing except sharing with you what we have seen in the public domain. This is an intent to raise prices. How much gets eventually absorbed by the steel makers, that remains to be seen, and that will be known in next one or two quarters. Yes, these are the announcements and of course, we also have to raise prices because in our case, the energy cost and ocean trades and even needle coke is now going to go up. So far it was not, but now going to go up. I think as an industry, we all need a price increase. Now how much actually gets translated What is anybody's basket is every company think how much is already booked, now being booked, something like that. We can't really say about if GrafTech price is getting absorbed or not absorbed, it is not good for us to comment, and neither we are aware. Got it. Fair point. My another question is on HEG Greentech. How much of that 20,000 tons of anode volumes is already contracted or let's say, is in advanced stages of the contracts? Because FY 2028 is now only eight months away, so any clarity on that? Ankur. So- Ankur. Yeah. We are talking with the customers for three to five years contracts, almost about 70% of the contracts will be closed by the next one and a half months. All these contracts will be long-term contracts with the top Tier 1 players across the world. When we say 70% of the contracts, that would be how much percentage of our capacity? 70% of the capacity, basically. Okay. 70% of the capacity. Yeah. My second question is on the DEL. How much of the debt do we have as of FY 2026 in DEL as of FY 2026, and how do we see it progressing for FY 2027 and 2028? See, there is no DEL, there is no debt in the company. It's zero, basically. It's zero. It's a debt-free company right now. It has been like this for a number of years. Okay. If we talk about then in the case of HEG Greentech, let's talk about then HEG Greentech as an entity. How much of that debt would be coming to HEG Greentech and how much would be, let's say, with the HEG Greentech company? That would be INR 1,500 crores. INR 1,500 crores INR 1,500 crores. -debt. INR 1,500 crores. Gross debt or net debt? It's a gross debt. It's a gross. Okay. Just to explain you, till date, we haven't drawn any much money for TACC, the debt. It's just started. When this entire demerger exercise will completed, and when you see 31st March 2027 balance sheet, there will be approximately around INR 1,500 crore debt lying on the company on a gross basis. Okay. Consecutively, we'll take debt for TACC in FY 2028-2029 because 70/30 kind of project financing will be there. This INR 1,500 crore would go up eventually, right? Is my understanding correct? TACC debt, what we have secured till date is INR 1,240 from SBI, balance is from our own capital and the internal accruals. FY 2029, we will see how we have to go about the additional debt if it is required for the additional capacity per se. Out of INR 1,300 crores of CapEx, which is there for TACC, earlier our plan was that 70/30 we will do. INR 2,100 crores of debt will be- When you're talking about INR 1,300 crores of CapEx, that is for 30,000 ton capacity. Right. Which the management have given a timeline that will be coming in next few years. If you talk about in that phase, INR 1,300, 70% will be through the financing. Yes, the debt will increase for that. Perfect. That answers my question. Thank you so much for your presentation. Thank you. A request to all participants, please restrict your questions to two questions per participant. For more questions, please rejoin the queue. The next question is from the line of Chirag from SKP Securities. Please proceed. Hello. Chirag, are you there? My question is. Can you hear me? Yeah, we can. Yeah. Hello? Hello? Hello? Hello? Hello? Okay. Hello. Everyone is on hold. Yeah. Yeah. Should I take the next participant now? Yes. The next question is from the line of Rohan from Arihant Capital. Please proceed. Hello, sir. Thank you for the opportunity, and congratulations for the good set of numbers. My question was, sir, yesterday you had announced that needle coke prices is expected to rise by another 10%-15%. Given the coverage cycle of our roughly 45- Hello, am I audible? Yeah. Go ahead. Yeah. Given the coverage cycle of roughly 45 days of shipping and 45 days of processing, in which quarter do we expect this higher cost material to actually flow into our P&L side? What could be the spread per ton we can expect on this, sir? See, just to clarify, the 10%-15% Riju ji said yesterday was of the total our cost of making electrodes. That was roughly 10%-15%. Left to needle coke itself, it has gone up by a higher amount. This will start taking effect in, I think, towards the end of the year. Because, of course, because it's a long process cycle, it takes one and a half months to make electrodes, stocks, et cetera. The rise will start taking effect towards the end of the year. As we are unbooked for that quarter, we will be raising prices for the end of the year to cover the rise in cost. Got it, sir. Our run-rate of around 24,000 tons annualized to roughly around 96,000 tons. Against our 100,000 tons capacity. How much headroom we can expect to have on the overall utilization level, what we can expect for the FY 2027 level, sir? Production varies quarter-to-quarter. I think there's no more headroom beyond 94% or 95%. That's about the peaking. We are running in excess of 90% at present. Quarter-on-quarter, it varies a little bit, and we think we'll close the year between 92%-95%, something like that. I don't think there's any more headroom, because then you have to create ideal conditions to reach 100%, and conditions are never ideal. Got it, sir. One last question is, sir, in the recent media interview, we said around 7%-8% price improvement we had in the first quarter. In last quarter concall, you guided for $300 per ton-$500 per ton price increase we expect for FY 2027. What have you contracted on the new bookings in dollar per ton basis, and what percentage of your second half volumes is now booked at this level, sir? Okay. We cannot speak in terms of specific numbers or dollars. What I remember in the last concall, we said that this is the kind of which we definitely require to cover our cost. Right now, we are booked up to September or even, I would say, up to October, and we are trying various markets, what market, what customer, what price. It's still a little while away. We'll know in next one or two months what kind of price increase average we are able to get from various markets. Can't say, surely we would definitely like to cover our cost and increase margins if possible. Got it, sir. Sir, if times allow, one last is on the- Sorry to interrupt you, Mr. Rohan. Can you please rejoin the queue? No worries, ma'am. Thank you. Thank you. The next question is from the line of Chirag from SKP Securities. Please proceed. Hi. Actually, my question was, our total anode project cost, which has been guided for about INR 2,200 crore-INR 2,300 crore. What can the phasing look like over the years to come? You're talking of greenfield, isn't it? Chirag, you are asking for what? The anode project, the CapEx INR 2,200 crores-INR 2,300 crores we had guided, right? Yes. Yeah. I think it will be safe to assume around a four- to five-year payback on that amount. No. I was asking what our phasing would look like, how much have we spent it by for Q1 and for the rest of the year, FY 2027 and 2028, basically. Puneet would be able to get that exactly because actually we've spent Chirag, I am not able to understand what you are asking. You are asking how much CapEx we have spent in FY 2026-2027, right? FY 2027-2028, my plant is coming online. I'm not able to understand your question. Yes. I'm asking for the anode project, how much have we spent in Q1 and for how much we'll spend for the rest of the year and for 2028? Okay. Out of the entire INR 2,200, 40% is already been spent. The larger amount will be spent in next three quarters. We are hoping that the entire 90% payment will be done by FY 2027, and balance 10% will be done in FY 2028 first quarter. Okay, sir. Balance FY 2028. Got it. Yeah. That's it. Thank you. The next question is from the line of Deepak Poddar from Sapphire Capital. Please proceed. Yeah, am I audible, sir? Yeah. Hi, Deepak. Yes. Yeah. Hi. Yes, Deepak. Thank you very much for this opportunity, sir. Just wanted to understand now on the pricing front, you mentioned that all the new business you are booking at higher prices. Already, we have taken a price hike of 5%-7%. You would like to maintain the margins, so the balance price hike you take in the range of 5%-10% more, because you mentioned your cost of production is increasing by 10%-15%. Just wanted to understand what's the price hike we are expecting and what is the sustainable margins we want to keep, given the scenario. Rather than going into the specific numbers and all, which is very risky on a call, I can only tell you that we'll be able to maintain the margins that we are now talking about, and we will have higher margin than anybody else. Okay. When we say maintain the margin, we are talking about this first quarter margin. Yes. Last quarter, this quarter, not much different. Yes. That 28%- 29%, including other income, right? That's what we are talking about. Yeah. Okay. Fair point. My second question is on your HEG Greentech business. Yes. Can you throw some light on the potential of revenue from the anode CapEx that we are doing in TACC and plus the Bhilwara Energy, what sort of potential we are looking at? I'm not aware much on this Greentech part, if you can just throw some light, it would be very helpful. What's the potential we are looking at in each of the segment in Greentech? I can take that question quickly. For the anode project, it will start commercial production Q1 of next year. We hope to operate at around 40%-50% capacity utilization, which should give us a revenue of around INR 600 crores-INR 700 crores in the first year, which would ramp- up to more than INR 1,200 crores in year two. In year three, crossing around INR 1,500 crores-IN R 1,600 crores. Again, the margins that we are looking at, without getting into more details, roughly an EBITDA margin of 35% under all these three numbers. As far as Bhilwara Energy is concerned, we've got two hydro plants which are totaling around 300 MW, and they give us a free cash flow of between INR 320 crores-INR 350 crores of cash flow per year. Because both the projects are debt-free, and these are the free cash flow that will come in from these two projects. Apart from that, we plan to put up one more hydro project, which will start operations by 2030, and one solar project, which will start operation in the next 18 months. Both of them combined should add another INR 200 crores of the EBITDA over here. Basically, the nutshell from HEG Greentech, we can safely say by the year 2030, we should be aiming at a four-digit EBITDA between all the businesses combined. Four-digit EBITDA. This solar project is coming in 18 months, and one more hydro project is coming by 2030. Yeah, two and a half years from today. Two and a half years. Okay. Close to 2029 maybe. Right. Yeah. What is the capacity of this hydro project? This is 75 MW, and we've actually acquired this project from our previous partner, Statkraft. A lot of work, around 30% of the work has already been done. That's why I'm saying two and a half years. Otherwise, the normal time for a hydro plant would be anywhere between four to five years. We are saving on that one year because a lot of the tunneling, et cetera, work has already been done from before. The solar project capacity? The solar project, if it comes up, it's a 300 MW C&I project. Which will just be a plain vanilla solar project of 300 MW DC capacity. Okay. All these hydro projects are IPP, right? Yeah. The hydro projects are run-of-the-river IPPs with around 30%-40% peak power. Average rate of selling, we've assumed at around INR 5.5, which surely we are going to attain this year because, 30%-40% of the power is sold as peaking power, which goes up as high as INR 10, INR 7, INR 8, and the regular power that you sell most of the time is around INR 4. A weighted average would be around INR 5.5 +. Okay. I got it. That would be it from my side. Just one last thing. The anode CapEx of INR 2,200 crores is for 20,000 tons capacity, right? Yeah, that's for 20,000 tons capacity. The expansion towards 1 lakh, any plan we have formed up or we have not formed up any plan as of now? No. Right now, the land that we have is capable of taking around 30,000 tons. As soon as we complete this particular project of 20,000 tons, we'll quickly take a decision of expanding it to 10,000 tons more, that would be done at a CapEx of around INR 800 crores. Okay. That would be it from my side. That facility would come up by 2029, not before that. No. This 20,000 tons is coming by first quarter of 2028, so it will hit your P&L FY 2029 entire year, right? Yes. FY 2029 will be 100% there, and FY 2028, it would be 40% capacity utilization. Yeah. I think that's very useful, sir. I wish you all the very best. Thank you so much. Yeah. Yeah. We can send you all the details on Greentech on a separate call if whenever you need. Sure. You can just touch base. Yeah. Thank you so much. Yeah. Thank you. Thank you. The next question is from the line of Kirtan Mehta from Baroda BNP. Please proceed. Since the start of the Middle East disruptions, what kind of needle coke price increase that we have seen happening in the industry? So far, I can't give a specific figure, but you can just take a ballpark number of anywhere between $200, $250 or $300. That's the kind of increase we are now seeing because of this rise in oil prices and also increase in demand. Going forward, we really can't comment because it is done quarter- by- quarter, can't really say what happens next. It all depends. We are just concluding quarter- by- quarter, and accordingly, pricing our products. Just to clarify, it will not have a very immediate effect. Everybody carries stock of at least three, four months, and then the process of converting needle coke to electrode itself is three to four months process. The impact will not be there for, let's say, at least the next three to four months, five months. Understood. In terms of our improvement in EBITDA, the segmental profit from INR 14 million to around INR 140 million in this quarter. Is it primarily because of the improvement in the realization, or are there any cost elements which has also reduced, which has helped in this improvement? Because there is improvement in realization, so that we carry all stocks of needle coke. Needle coke price remains there, and there's improvement in realization. Would you be able to comment on regional trend in terms of, are this improvement coming in any specific regions? No. It's coming from everywhere. Wherever. These are global prices, so whichever market, it's not that one market increasing and one market is not increasing, at all. Some proportion matter. The quantum matters differs from market to market, but when the price increase happens, it happens globally. Right. Just second follow-up question was on the U.S. regulatory actions. There is a potential that the preliminary result can come by July and final could be come by September. What is our exposure to that market? How much volume we sell into U.S. at this point of time? Hardly, I would say, about 10%. About 10%. That, because as a company like HEG, we are very well entrenched in so many countries. All the major steel making nations, HEG is present, U.S. is hardly 10% of our business. It's fine. We'll see what comes. As you rightly said, let me explain, tell you a little more specific. CVD is by end July. Dumping is by end September. We'll see what they come up with. We know that we have not done dumping. That is for sure. Understood. In terms of the outlook on the prices. Would you be able to also explain Sorry to interrupt you, Mr. Mehta. Can you please rejoin the queue? Sure. Thank you. The next question is from the line of Ahmed from Unifi Capital. Please proceed. Yeah. Thanks for the opportunity again. If I try to understand the structure of Bhilwara Energy, the hydropower plant owning entity, it owns a 51% stake in the Malana Power entity, and the balance was with Statkraft, which we bought in. To buy that stake, we paid around INR 1,200 crores. Ahmed, your voice is breaking. How did we fund that amount? Yeah, I'll come back again. Is it clear? Yeah. Continue. Yeah, I was saying that we bought 49% stake of Statkraft in Malana Power. How did we fund that? See, we borrowed money 50% from the commercial banks, and 50% partly coming from the family office and partly from DEL. Hello? Okay. Yes. When you merge it with the Greentech entity, will any of that debt come on the books, is my question. No. Actually, INR 600 crore is already there in the books of DEL through subsidiary. That will be there. I think by that time, we will be retiring all these debts. Okay. Got it. Second question is, post all the consolidation and when the Greentech business lists separately, what will be the outstanding shares? It will be around 39 crore shares. Sorry, 32.9 crore shares. 32.9 crore shares. If we add the singularity- Yeah. Sorry. Yeah. Got it. 32.9 crores, then there will be one more tranche of Singularity which is left to be used, I'm assuming. No. It's no, done. Okay. After everything, it is 32.9 crores. I'll explain to you. Today, HEG share, number of shares are around 19.7 crores- 19.8 crores. There will be around 13 crore shares which are being issued additionally, which is to be given to Singularity for their investment and to the other shareholder, which are promoter and RSL Limited, who is our shareholder in DEL. After this, there's no fresh issuance of shares once this has been allotted. Understood. My only question was that there were two tranches of Singularity. In 32.9 crores, both tranches are covered? Yeah. It already been done. Okay. Done. Got it. Sure. Thank you so much. Okay. Thank you. The next question is from the line of Ronak Agarwal from Ithought PMS. Please proceed. Yeah, sir. Congratulations. Am I audible? Yeah, you are. Hello. Yeah. Sir, congratulations on a great set of number. Once again, just want to understand a bit about America putting ADD and CVD. Let's say if ADD comes, just in a hypothetical scenario, how are we looking to de-risk the volumes? I think we sell around 20% of our revenue in America. How are we looking to de-risk the same, and what kind of contracts do we have with the players where we are selling? First of all, it's not 20%, it was 10%. I said 10%. With the kind of presence we have in the other markets, God forbid, if it happens and if something comes, which is totally unreasonable, it will not be difficult for us to absorb that volume in elsewhere. We will cross the bridge when we come to it. Right now, it's just speculation, what will come, what will not come. We'll see. If it makes sense, yes, we'll be there. We would love to be there. If it doesn't, we have alternate markets. Okay. You are confident of the same, that you will be able to ship it to some other countries? Totally. Okay. Yeah, that's it from my side, sir. Thank you. The next question is from the line of Kirtan Mehta from Baroda BNP Paribas. Please proceed. Thank you for the opportunity again. One question on the graphite electrode market. If I understand the market, I think its global market is around 600 KT for the UHP electrodes, and roughly one third is supplied by the Chinese. Amongst the balanced market, I think two Indian players and couple of larger Western players operate. While we operated around 90% utilization, the Western capacity utilization is still in the range of 60%-65%. What gives us the confidence that the pricing can improve when the market is still sort of in a supply surplus? Okay. Now you see, if you look at the figures, since that COVID times, if you look at steel production of major steel producing countries, they've been quite stagnating. Today, I can safely say that steel industry utilization is even less than 75%. The moment the production starts to increase, ex-China is more than 50% from electric arc furnace, the graphite electrode demand will grow. The figures which you gave, that the market of 600,000 and 200,000 is supplied by China, I tend to differ. It's not that number. It is much less, maybe half of that. We are operating at high capacity utilizations, as you rightly said. That means we have markets, we have market presence to be able to sell our product. We are all looking at the return of demand. We are looking at the new electric arc furnaces. Please tell me if you have ever heard of a new blast furnace coming up in Europe or U.S. No. Whatever capacities are coming, are coming in electric arc furnaces. There'll be increase of demand. One, by the production increasing, and second, that new EAF is coming, which will add to that steel making capacity. Right. Primarily, I think it's tied to the return of demand or new EAF as and when it comes through. If U.S. market. Absolutely. Sort of levies the ADD or something, that market could become sort of relatively less lucrative for us. Would we be more dependent on the demand coming up in Europe, which will decide where the prices would move and whether we can benefit from it? Not just Europe, there is steel is produced in all parts of the world. Middle East, China. Believe me, we will retain America. American prices are higher than most of the others. We might lose some sort of a market share, but we're not going to leave that country. Right. Sure. Thank you. Thank you. The next question is from the line of Kaushal Sharma from Equinox Capital. Please proceed. Hello. Hi sir, my question has been answered. Thank you. Thank you. Due to time constraints, that was the last question for today. I now hand the conference over to the management for closing comments. Over to you, sir. Thank you. Thank you for large presence today and some very probing questions, which obviously mean that you guys are really focusing on HEG and the graphite industry. I look forward to speaking to you in three months' time with maybe some better information, more knowledge. I can only tell you that we will produce at 90%- 95% capacity utilization come what may. Thank you. Thank you. On behalf of 360 ONE Capital Market, that concludes this conference. Thank you for joining us, and you may now disconnect your line. Thank you. Thank you.