Ladies and gentlemen, good day and welcome to Jindal SAW Q3 FY 2023 earnings conference call hosted by PhillipCapital India Private Limited. 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. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Vikash Singh from PhillipCapital India Private Limited. Thank you. Over to you, sir. Good afternoon, everyone. A very warm welcome on Jindal SAW Q3 FY23 earnings call. From the management side, today we have with us Mr. Neeraj Kumar, Group CEO and Whole-Time Director; Mr. Vinay Gupta, President and Head Treasury; and Mr. Narendra Mantri, President, Head Commercial, and CFO. Without taking much of the time, I would just hand over the call to Mr. Neeraj Kumar for the opening remarks. Over to you, sir. Good afternoon, shareholders, stakeholders, friends. Last week we had our Board meeting. I hope all of you have received the note that we circulate, which is customary after the Board meeting. Just to go over some of the highlights of the performance on the standalone and consolidated basis. This quarter we had a turnover of INR 4,641 crore, as compared to INR 3,367 crore trailing quarter, INR 2,851 crore last quarter, which is respectively 38% and 63% growth. EBITDA of INR 598 crore, INR 301 crore, INR 202 crore. However, let me point out upfront, out of these INR 598 crore, INR 113 crore is an accounting entry. It's not a real income. It is something that has to be recognized as per the accounting standard, and therefore, if you remove that INR 598 crore minus INR 113 crore is INR 485 crore. INR 485 crore also has shown a growth of EBITDA 61% and 140% respectively for the last two quarters as we are comparing. The financial expenses, INR 138 crore versus INR 126 crore last quarter. Out of this INR 138 crore, if you see, there is a financial cost, INR 13 crore has been because of the foreign exchange fluctuations. Add a addition to the top line is INR 19 crore, so the net gain of foreign exchange- This call is now being recorded. INR 5 crores. Overall, if you look at the performance, as we have been saying, and as we have been waiting, the performance is impressive. All the parameters that you would look at in a performance, has improved and has shown a trend which gives us a comfort that indeed we have had a all-round and a comprehensive improvement in the performance, which has been, under some kind of a pressure in the last few quarters because of the reasons that we have been explaining. We have always given a hope to all our friends and investors that this is a temporary blip for which enough actions are being taken, and we should be out of it. This quarter is the first indicator now indeed we are on the path of progress, which is actually a result of a lot of hard work, a lot of management input that has gone in setting up the business model that we have today. Namely, first is the variable price. If you look at the last few quarters, the performance has been largely suppressed, not because of the top line got suppressed, but because the raw material prices they're completely out of whack. We have succeeded in getting most of our clients, including government clients, to accept now a variable price model for the revenue. Where one of the key or two of the key benchmark parameters in the raw material prices, where the raw material prices are correlated, actually is the index based on which there is a variable price mechanism for the top- line. That has begun to show results. Going forward, it would take its more impact. The other very important thing which has started showing results is our effort and focus on moving up the value chain. Moving towards premium products, moving towards value-added products, and moving towards the segment which hitherto has not been addressed by the domestic players. Atmanirbhar Bharat has helped us in that effort. Now we have been able to substitute a lot of products from import into domestic sector, where we have been the predominant supplier. On the business side, these two are very significant development within the system, which is giving us a lot of comfort that going forward. We will continue to bear good results on the back of these two important factors. If we now look at our consolidated results, again, just to broadly take the numbers, top- line INR 5,202 crore as compared to INR 4,067 crore, INR 3,509 crore. EBITDA is INR 539 crore. Here, we don't need to reduce that INR 113 crore because that's a contra entry once we take the consolidated results. INR 539 crore as compared to INR 355 crore and INR 242 crore. Again, a similar result where you would see that not only Jindal SAW performance has improved, all other subsidiaries are now contributing in a positive manner in the EBITDA, at the EBITDA level, even down below. All subsidiaries are beginning to do well, except for this quarter, the Abu Dhabi subsidiary as compared to the comparable quarter last year, the performance has been a little lower, but that's again a temporary phenomena. We have enough order book. Now the supply chain is there, and hopefully towards the end, the fourth quarter, there should be some catching up that must happen. The good result overall is that all our subsidiaries are not now contributing to the business, and that is shown in the consolidated results. Another very important thing that on which we have always been keeping a very strong eye on and have been showing the trend is the debt profile of the company. Even though on top of a top-line growth, on top of a very good performance, we have actually been able to bring the net debt down either at a consolidated level or at a standalone level. Everywhere across the board, the loan continues to come down, even though trade finance is very much a part and parcel of our operations. The long-term debt is now hovering around INR 1,200 crore for Jindal SAW on a net worth of over INR 6,000 crore. By any standards, we are in a very, very healthy position when it comes to debt servicing, when it comes to the interest rate or etcetera. On a debt position, the balance sheet continues to remain strong, continue to build strong, and we intend to keep that trend. We intend to keep that tight control on our debt position going forward. That broadly covers the high-level performance indicators that I have given. Some of the key drivers that we have set, namely the value-added product as well as the variable price that we have been able to achieve. Broadly, this is where. Now let's look at the second important thing when you see a result like this in a quarter. I'm absolutely certain the first thing would all of you want to know is this sustainable? Do we have a momentum? Is this more by toil, by hard work, or is this just by chance? I wish to give you comfort that this is a result of a diligent hard work that we have been doing, that all of you, even if you are seeing our results, there is a certain pattern that is emerging. There is certain consistency that we have in our performance. Obviously, we have faced extraordinary situations in terms of commodity price, in terms of pandemic, but still on the core operations, there has been a certain amount of consistency. That continues. That will be the backbone on which we are confident that the next few quarters, our performance would remain very strong. If you look at the order book, very healthy order book on all segments and very balanced both in terms of domestic as well as international exports. The way the rupee is moving, that also is giving us comfort that at least we do not have any major foreign exchange risk. As it is, we never use foreign exchange position for speculative purposes. We are usually hedging based on a conservative strategy, that again gives us comfort that on that front, on our export businesses, we shall not be putting any of our revenues at risk. A healthy order book, good mix of export versus domestic. 35% roughly is our export order book, which is healthy, confirmed. This kind of an order book, which is about $1.3 billion, which if you recall just a few quarters back, was deliberately kept at lower than our sweet spot, which is around $1 billion. Now, since we are ready, we have got a lot of capacity available in the large- diameter pipes. The large -diameter pipes order book deliberately we have swelled, and we will continue to perform. There is no constraint on the capacity side. Large -diameter pipes business is likely to be now a driver for the next quarter or so. We also have some significant export orders in the basket, very large orders, where we would maintain the delivery, we would maintain now the revenue stream. It will all be there. Looking at the performance and the order book and our positioning in the market, we are confident that the momentum would continue, and we should have a good next few quarters. That is something that we are very confident about. As I said, one of the strength would be the premium segment that we are entering, be it stainless, be it seamless. Everywhere the premium segment will continue to improve our EBITDA percentage, will continue our improve our margins. The important aspect is that now the JV with Hunting, the machineries are under trial. We have already applied for the API license. As we say, the soft launch will happen anytime soon, definitely during this year. Hopefully early next year, that means by the mid of calendar year 2023, we should have the grand opening of the JV between Jindal SAW and Hunting. Everything is on track. All the machines have been delivered. The trials are going on. As I said, API license has been applied and will continue to help us once we have this moving. The China is an important factor, has always been an important factor in our business. I hope a combination of many factors, probably the impact of China on our business would become lesser as we continue. Now there is some anti-dumping duty, there is some other protection which is available. That is going to reduce the impact on our business, and that makes us feel confident that the China story, we would now continue to do our business more independently than what the impact of China or influence of China would be on our business. One good thing that also we are seeing is that a certain amount of stability in the raw material prices. The raw material prices have not gone back to the pre-COVID levels, but the volatility has largely reduced, and slowly we are seeing the trend where they are settling to a more reasonable level. That being what we have at this point of time with the order book is again, is not a matter of concern for us. Looking at the now domestic situation, one thing that I must emphasize, that even though we have a healthy order book, but we continue to focus on the domestic market more. Going forward a few quarters, if I look forward, again, our emphasis is on domestic market because we believe that the global recession would have a lesser impact on the domestic market, because in India, the demand supply, especially in the kind of products that we have, kind of balances itself. With Atmanirbhar Bharat in place, kind of giving the domestic market that kind of a protection, and with a demand supply kind of matching, we continue to focus our attention on domestic market. We believe that this would actually counter a global recession, assuming what now people are saying about U.S. and Europe were to happen. Still, we believe that our businesses would not get impacted to that extent. Therefore, we are basing our strategy on a strong India strategy, a strong support from Atmanirbhar under Atmanirbhar Bharat, therefore a limited impact on the global recession. Most of our order book that are there, we again believe are from countries which would continue with their projects because there has been a lot of pent-up demand in oil and gas sector post-pandemic. We believe that these projects that we have in our order book will go to fruition, will go for a complete. Some of the projects are very large projects and very important projects for those respective countries. We hope that they will definitely work. Oil and gas is one sector where we are seeing some domestic buying because of the prices and again, some pent-up demand. Both Oil India, ONGC, everywhere, we are seeing some healthy buying, and we hope this will continue. Another very important aspect is now we are entering the election year. Therefore, we believe that this budget which is going to come, the national budget I am talking about, will continue to lay emphasis on the infrastructure projects, on the water projects, on these projects, because now we are running the last year of this government. That again gives us confidence that we have a good visibility, and the momentum that we need will continue for the next three to four quarters for sure, based on the government support to the infrastructure project just before the election year. Not, last, not the least, two news. A, we are awaiting the NCLT order on Sathavahana any moment. Everything has been cleared. The order has been reserved by the judges, so we expect the order to get announced. No sooner than it is announced, I'm sure we would inform all of you via the stock exchange. Again, NTPC, JITF, we have continued to talk about it, but now it is slated for hearing in March. Anyway, if you see the impact of that, even though it's a high aggregate number on the overall business is getting diminished day by day because our other businesses are growing. With that, I think I should halt. I hope I have covered all the aspects, and I would leave some time for questions, answers. My request, let's try and finish this by 5:00 P.M., because there is something which is important, which we have to, which I have to look after at 5:00 P.M. Let me leave enough time for some question and answers. Thank you all. Thank you. Thank you. Ladies and gentlemen, we will now begin the question -and- answer session. Participants who wish to ask a question may kindly press star one on your touchtone telephone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Kindly press star one to ask a question. The first question is from the line of Riya Mehta from Aequitas Investments. Kindly proceed. Hi, good afternoon. Congratulations on good set of numbers. My first question would be in terms of what kind of pipeline or the bid book are we seeing in terms of oil and gas as well as the Jal Jeevan Mission order book? If you see the, INR 60,000 crore, which is about $94 million, El Saw, large-diameter pipes is completely, oil and gas. Out of the $337 million of large-diameter pipes in, El Saw, a significant part, probably 20%, is in oil and gas. Okay. In terms of the order, basically the pipeline, what kind of orders are you seeing in the future apart from the current order book which we have? Very healthy. See, normally we do not speculate on the sales funnels. We don't announce, but at this point of time, the sales funnel is very, very healthy. I can give you that assurance. Okay. My next question would be in terms of Jal Jeevan Mission, what kind of execution are we seeing considering the election coming up? What kind of order inflows are coming from that? At this point of time, we are all running full capacity. Jal Jeevan Mission, the way they are announcing projects in all the states, I think we will continue to run full capacity. That is where I am caveating, Sathavahana order getting announced will add another maybe 2+ lakh tons to our ductile iron pipe facility. In Samaghogha, we are continuing to do well, and hopefully we'll do more than 5 lakh tons there for sure. Overall, then we would have a run rate capacity of 7.5 lakh tons, which I think would keep us busy for the entire Jal Jeevan Mission water projects. Right. The big offer we received last quarter, I think it was for NEOM. How is the execution for that and, could you give more details on that order? Sorry, which one? NEOM. The NEOM. Yeah, the NEOM, we are expecting the advance any time. Once we get the advance, then we count 12 to 15 months for the execution of that. That's a fairly large value. $335 million. Contract. It's about over $300 million. Once we receive the advance, then we look at 15 months from there. Hopefully, if we get the advance here, then the next full year, most of the project should be executed. Got it. Big project that I was telling you about in terms of the export order being water and being for the new capital city which is being built in Saudi. That should be a good project, and we hope that it'll progress as planned. Okay. Also my next question would be in terms of the order book. Currently, almost 35% is from export. Could you give me a geographical break up for this? What break up you need? Export order book break up. It's already given, 35% is the export order. Y- What further break up are you looking for? Country-wise. Normally, we don't give those because the reason why we don't want to give you country-wise because we don't want to confuse. Many times what I have seen that giving too much details where people have a small span of attention, it creates more confusion than. As you know, out of these major export order of $466 million. Sorry, can you just? $300 million is NEOM. We have some very good projects in the Middle East. Europe, we have some large ductile projects. Saudi, we have some large DI projects. We don't usually give the country-wise break up because then we also have a product mix, so that matrix becomes too much complex. Okay, got it. I think that's it. I will join the queue for further questions. Thank you. Thank you. The next question is from the line of Deepak Poddar from Sapphire Capital. Kindly proceed. Hello. Yeah. Hi, good afternoon. Thank you very much, sir, for the opportunity. Sir, I just wanted to understand, in your opening remarks, you mentioned that you expect a EBITDA margin to continue to improve, right? What sort of steady-state EBITDA margin are we? Because I think, before this raw material fiasco hit us, we were consistently in the range of maybe, what, 12%-13%, 14%, right? In terms of margins. Okay, a very good question. With the improved margins on the value-added project, products. Mm-hmm. Stability of the raw material where all the inventories of the high value raw material are consumed. Once our steady state is attained, which we expect that should happen in a quarter or so. Mm-hmm. Our sweet spot of EBITDA would be upward of 14%. Okay. That you expect, post 1 quarter we can maybe by first quarter, we can achieve that. Maybe in the second quarter of this year, if the commodity prices continue to behave. Mm-hmm. We can expect that. Second quarter of FY 2024, right? Yes. Okay, fair enough. I understood. Sir, any kind of outlook you want to share on the growth part, I mean, in terms of top- line, how do we see that next year, FY 2024? Growth, I would be, I would say healthy, but I would not hazard a number at it. Okay, fair enough. I understood. Any sort of CapEx, I'm not sure... No major CapEx. No major CapEx as we continue to maintain that we do not have any major CapEx. Uh-huh. Once we have completed the acquisition of Sathavahana, once we have brought our debt in control, there is a lot of pressure. Mm-hmm. From government of Rajasthan. Also, there is some business reasons where nothing on the cards at yet. Mm-hmm. We may start looking at the steel project in Bhilwara in a much more truncated form. Earlier, what we were thinking of was a fairly large and elaborate, but it would be in a much more truncated form, primarily as a backward integration to our Nasik and Nagothane, where we just do billets to support those business. These thoughts are initial thoughts. I must caveat it. Nothing in terms of concrete steps taken, nothing in terms of arranged. On a horizon, maybe over the next 12 to 18 months. Mm-hmm. That we may think of those as the next phase for value addition growth once we have completed whatever all that we have in terms of Sathavahana, et cetera. Fair enough. I understood. Understood. My final question is on your debt part. I mean, you did mention that you expect it to go down and this trend to keep that trend going, right? In terms of our reduction in debt, in spite of the growth that we are seeing. Some kind of, I mean, comments you can provide that how do you see the debt over next two years? Debt, all I can tell you is, whenever there is a repayment, see, we don't want to accelerate any repayment and get into any pre-penalty, prepayment penalty, et cetera. Mm-hmm. Whenever the debts are falling due. Mm-hmm. We are repaying it, and therefore, there is a natural progression towards the long-term debt moving in a certain, in one direction. Mm-hmm. As far as the working capital is concerned, as I told you, trade finance for us is very much correlated to our operations by itself. We are making an attempt to manage that very, very diligently, very, very efficiently, reduce our working capital cycle. In aggregate terms, it will more or less track the top- line. Ideally when you see growth, your working capital days should go down. Will go up, yes, because that is how the business is. That is what the nature of this business is. Go down, right? No. When the turnover goes up, you will see the working capital utilization will go up because all our purchases are LC- based. All our receivables from government always has a credit period of say 60 days to 90 days. The working capital utilization will be positively correlated to the top- line. Mm-hmm. I understand. Yeah. That's it from my side, sir. All the very best. Thank you. Thank you. Thank you. Participants, if you wish to ask a question, kindly press star one. The next question is from the line of Abhishek Maheshwari from SkyRidge Wealth Management. Kindly proceed. Yeah. Hi, thank you for taking my questions. Many congratulations on your set of numbers. Sir, firstly, if you could share the EBITDA margins that we make on our pellet division, if it's possible. Pellet, yes, we have reported it is about INR 10,000 crore. It's INR 9,900 crore to be exact. INR 10,000 crore is what we are making on Pellets as in EBITDA. We are talking margins. This is a realization. Pellet realization. Pellet realization is about INR 10,000 crore per ton. Yeah. Okay. Margin, you could share it with me? No, we don't share the margins that I told you. We never shared the EBITDA margin segment wise because that we believe is one of the USPs of Jindal SAW. Okay. That's okay, sir. No problem. Sir, secondly, any plans of expansions in iron ore pellet division or if you have any plans to acquire coal mines going ahead to strengthen your supply chains? No. No, no mine acquisition on the cards. only thing that we were talking about or we may think sometime, in future is I have spoken to you about a smaller truncated version of a steel plant. Otherwise, no more, no acquisition. Coal mine for sure, no. Okay. Neither iron ore at this point? See iron ore, there are certain mines which are in the close proximity to our existing mine, and they are all very low- grade iron ores. There we may have an advantage. If they come attractive, we may. Otherwise, are we into very strong bidding for mining? Iron ore, no. Except for in Rajasthan, where we have synergy, low- grade, where we have a strategic advantage. Coal, definitely no. Okay, sir. That's it from me. Thank you very much. Thank you. Thank you. Participants with questions, kindly press star one. The next question is from the line of Miraj from Arihant Capital. Kindly proceed. [crosstalk] Hi. Thank you for taking my question. Just a couple of things I wanted to understand, sir. In your opening remarks, you mentioned that you're moving towards more value-added products and premium products. Just wanted to understand if this is there's anything apart from stainless pipes, Seamless Pipes. The second one, sir, is that you mentioned that we are substituting import into the domestic sector. Could you just give a bit more highlight on that? What product exactly are we talking about here? Just these two questions. Sure. Let's look at the value add. We will go segment wise. If you see in Pellets, we are beginning to produce Pellets which are high- grade, higher grade in Fe. We can go up to much higher than 65%. If a customer wants, obviously we charge some premium on that. Plus, now if you look at the large -diameter pipes, we are moving towards all kinds of inside, outside coating, which includes PU, FBE, and others. We do bends. We will start doing connectors once we have the JV up and running because we also have a strategic alliance from OSI in the joint venture. Large -diameter piples, improvement in coating, improvement in the bends, improvement in connectors and those related products. In DI, we already have upgraded ourselves to go up to INR 1,200 crore. Fittings now, most of the fittings we are doing it ourselves. We have developed double chamber pipe in DI, we continue to look at a few other products which will give us more realization. In the seamless and stainless, yes, entry into seamless, similar, seamless and stainless value-added products. For example, in alloy steel, moving to 13 Chrome, higher grades, which are the CRA grades, entering the T series, the Q series and the P series. In stainless steel, for the now base grades, which were the 304 and 316, we have already started moving towards where we have tested Duplex, Super D uplex. We would even be now wanting to enter into and we have started practicing and preparing for the Inconel, which is the H series. Already we have made some inroads into some of the major sectors of businesses like defense, nuclear power, et cetera, which we believe will open up. At this point of time, we are in a trial phase, but we believe this would open up a new market for us. In seamless, smaller diameter, higher grade instrumentation tubes is something that, again, we are beginning to try. These are some of the things. Finally, as I said, the Hunting- Jindal SAW joint venture, which would create a center of excellence of its kind in this part of the world. That would have a complete range of all premium connections, including connector connections from the smallest range, which is two 7x8, going right up to 36 in. There is a plenty of coordinated, well-thought-out effort on each of the divisions and each of the businesses, where we believe that this will open up all different business segments, and it would help us stand out from the others who are doing more of the, what we call the commodity or the run-of-the-mill models. Under-understood. If you could highlight on the other point on substitution imports? Okay. Most of these that now we are doing, for example, if we start doing those connectors, which is those OSI, would be an import substitute, the 13 Chrome, and those segments are import substitute. heavy weight drill pipe. Some of those are again, these are things which used to get imported. Now it would not be required to be imported because it will all come under Atmanirbhar scheme. A lot of instrumentation tube, et cetera, that we will develop, we would be the first one or we would be among the few who would be doing it in India. Understood. sir, excellent. To ask one last question. what is the realization of seamless [audio distortion] Excuse me, Mr. Miraj, we are not able to hear you clearly. Could you repeat your question? Am I audible now? Yes, please proceed. Can I know realization in Seamless Pipes? I can't hear. Moderator, would you please, if you have heard it clearly, would you please? No, sir. Mr. Miraj, one last time, could you repeat it? Yeah. Would you be able to tell us the realization in Seamless Pipes, the realization that we are making per ton? Again, a very difficult question to answer because it's a very wide range. At the lowest rate in seamless, you can go just above, you know, the raw material and plus some INR 10,000 crore-INR 20,000 crore. In some grades, it can go up to, you know, twice. Seamless, we have such a wide range of products that giving you any average NSR or realization would be a recipe where I would be misleading you more than guiding you. Okay. Okay. Understood. Congratulations on the result, thank you. Thank you for answering my questions. Thank you. The next question is from the line of Hiten Boricha from Joindre Capital. Kindly proceed. Hi, sir. Thank you for the opportunity. Most of my questions have been answered. I have one or two questions. The first one is, you mentioned our current order book is around $130 billion. Can you give it the breakup of the order book, like, in segment-wise, let's s ay DI, Pipes, Seamless, et cetera? In fact, we have circulated, a note in which that entire breakup of segment-wise order book as well as domestic and export has all been provided. What I would request you is just refer to that note that has been circulated. Right? Okay, sir. I think I'm not in your mailing list, sir, but that's okay. I'll get back with the IR. Yeah. No, no. If you are not on the mailing list, please make sure that you contact Mr. Rajeev Goyal, get onto a regular mailing list. Mr. Rajeev Goyal would be supporting you and handholding you through all your process. Sure. Sure, sure. Sure, sir. Okay. Sir, just can you give some color on you are saying that our pipeline, we are sending a very good healthy pipeline? Which particular sector you are seeing any particular sector like DI pipes or anything where you can say throw some more color where we are seeing a healthy growth? All around, I would say. Look at the large diameter, look at DI. Pellets are strong because steel continues to do well. Stainless seamless, we are doing very, very well. At this point of time, in fact, all four segments of Jindal SAW is seeing some very good and a healthy, I would say, order book and future ahead for the next few quarters, the kind of visibility that we have. Okay, sir. Yeah. Thank you. Thank you. The next question is from the line of Dewang Sanghavi from ICICI Securities. Kindly proceed. Thank you for the opportunity. What will be the volume range we are targeting for FY 2023 and FY 2024 for each segment, SAW, DI and SS? No volume you are talking about year end. See the current trend we have given you. Yes, sir. We have done. What I would suggest is, take the quarter three extrapolate, because again, giving you numbers in terms of guidance forward looking is something that I'm not sure whether, I would be doing the right thing. No problem, sir. That's helpful. Just take your number three. Quarter 3 is a good indicator of the kind of growth that we have achieved. Right, sir. Based on that, just project it for quarter four. You will get a fairly a good idea of how the year is likely to come. How about FY 2024? There'll be some growth on that, FY 2024? We do expect a reasonable growth over this year because there we expect all four quarters to do definitely better than the respective four quarters of this year. Mm-hmm. The Q, after Q4, the Q1 should be at a much higher plane of a Q1 of this year, because here the Q1 was a little suppressed. Right. We do expect next year to be definitely better than this year in a reasonable way or in a significant way. Right, sir. My second question is regarding the Sathavahana dispute. How quickly we can ramp up the capacity out there once we are declared? The matter being sub- judice, it would not be appropriate for me to talk more. All I can tell you is that all hearings have been completed, order has been reserved. We are expecting a result any day, and we expect a positive result in our favor. Once that happens, you know that already there was a lot of repair and repair work, et cetera, maintenance work was going on. Right, sir. We should be in business very soon. Mm-hmm. I have already indicated earlier that we expect it will add over 200,000 metric tons to our capacity. Right, sir. Thank you, sir. That was helpful. All the best, sir. Thank you. Thank you. Participants who wish to ask a question, kindly press star one. The next question is from the line of Akanksha from Brickwork Ratings India Private Limited. Kindly proceed. Good evening, everyone. I just wanted to continue with the previous question. Regarding the Sathavahana project, like how much the company has invested in the repairs and maintenance? No. The company has not invested anything in repair and maintenance so far. Mm-hmm. Unless the company gets the order in its favor. Mm-hmm. How can I make an investment? The company also. No, you just. Played a different role. Okay. That's what I'm saying. You, there's no zero investment first. Let us clear that. Okay. The company also had a role where it had won the contract for repair and maintenance. Mm-hmm. There probably what the overall spent would be, would be of the order of over INR 200 crore, which is a receivable, which whosoever is a successful bidder would have to pay. There is a spend that has happened in terms of maintenance, keeping the capacity ready. Okay. In terms of investment it is zero. Okay, okay. How much the company has invested in that particular? Madam, again, you are asking a wrong question. Investment is zero. As a repair and maintenance agent, the company has spent and billed approximately INR 200 crore. Okay. Which the company will receive from the successful bidder. Yeah, yeah. Okay, okay. The company has spent approximately INR 200 crore. Yeah. Okay, sir. Which is very much a part of the operational creditor, and it is very much a part of the overall, the case and the judgment process. Okay. When we are expecting the order, sir? Any day, because in a judicial process you can't... When the order gets reserved, then, you know, the judge has a certain sequence. They release the order in a sequence. We expect it now any day. Okay. Thank you. Thank you, sir. Thank you. Thank you. The next question is from the line of Saket Kapoor from Kapoor Company. Kindly proceed. Namaskar, Sirji. Namaskar. Thank you for this opportunity, sir, and congratulations on a very steady set of results. Sir, firstly, if Vinayji could explain us this other in-income impact, what resulted in this conversion, and does it cause an actual tax outgo or that is also a book entry? Okay. Saket, Mr. Mantri is here, who is the Chief Financial Officer also. Yes. I'll request him to explain this matter. Yeah. Saket, I think our note on this matter is very clear. The impact has come because of the modification in the terms of the RPS issued by the subsidiary and held by Jindal SAW. Its impact is deferred tax, and that amount is also given in that note. This money was receivable from JITFL. It is a form of preference. No, it is not. Saket, it is not receivable. It is, it will be received on at some future date when the RPS gets... Matured. Matured. Nothing is receivable. Nothing has been received. The Indian accounting standards require that whenever you have an instrument like this, whatever is the future potential realization, you have to- Account for the pro rata- Exactly. possible return. You take it and spread it over a seven-year period. Don't rap. What I suggest is for the purpose of the kind of analysis that you people do for these results, just ignore this. It will have zero impact either now or then on the business performance. Sir, when you were mentioning about the CapEx part and you mentioned that there is a scope of again re-reviewing and coming back to the drawing board for the steel plant at Bhilwara. In a truncated form. Saket, let me just complete that because to rake your memory in a much more truncated form. Okay, sir. Can you spell more thought on it, what by means of truncated you are guiding us, sir? All right. Earlier we were talking of a steel plant which would have had a customer interface, so the product range would have been much wider. Now, when I say a truncated steel plant, we are looking at a backward integration where we produce enough in terms of quantity, in terms of grades to support our Nasik and Nagothane operations and facilities, so that in Nagothane, in Nasik, the value add would start from the iron ore stage and would go, in some cases, right up to premium, thread cut premium product, which is a JV from Hunting. To make sure that the entire value is captured within the company, we may look at that. At this point of time, I repeat, we are still thinking through the process and doing various analysis before we firm up our view. It will be a much truncated form of steel plant, which will only cater to the Nasik and Nagothane raw material inputs, which at this point of time we buy from outside. We sell pellet to outside. Can we take our Pellets and make billets enough to support our Nasik plant is something that is being considered. Correct, sir. Can you give the color also, what is the annual requirement for the Nasik and the Nagothane unit that will be supplemented by this steel plant? Maybe at this point of time we are looking at the yielded raw material would be in the vicinity of maybe 400,000 + tons. Correct. Now coming to the cash generation part, sir. You did mention that we are not going for any prepayment of debt, and the INR 1,200 crore number will get reduced as per the scheduled payment. The incremental cash generation saw from the order book, which we have currently and the thoughts you have shared with us, that going ahead things are looking better. That would help us control the working capital. Okay. If you already see in this quarter, the turnover has gone up, but the working capital utilization has come down, primarily because all the excess cash that we are generating, we are using to bring down my working capital cycle. That means in nutshell the finance cost on as a percentage would definitely be lower. Saket, you just see the results cycle. That is in front of you. Yeah. No, no. No. No. Yes, sir. I'm just extrapolating that the cash generation will support. Yeah. Yeah. That trend will continue. It's a conscious decision. Right, sir. A small point on the selling of the non-core asset part. I think so, we were contemplating some sell-off. Maybe, we have also shortlisted the asset of Waste to Wealth. Where are we in terms of that divestment, sir? [crosstalk] Saket, please let me just. Which non-core assets now is still in Jindal SAW? Sir, waste-to-w ealth, you spoke about some plants we had. Energy has been demerged long back. All the loan that Jindal SAW had given has been repaid. This time when you see the balance sheet, you will find a lot lighter and a cleaner balance sheet where the investment portfolio, the loans and advances, and all of those have been cleaned up to a very large extent. As far as that business is concerned, it has already been demerged. Whatever was the loan from Jindal SAW has all been repaid, which you will see during this year and at the end of the year when the balance sheet comes out. Sir, your presentation. Saket Kapoor. Yeah. Ma'am. Yes, sir. Saket Kapoor, no non-core businesses or companies as a part of Jindal SAW, which are significant. Right, sir. If time permit, can I- Sorry to interrupt, sir. Due to paucity of time, it should be the last question. Two minutes here, sir. Sorry, sir, we'll have to close the call. Thank you. Ladies and gentlemen, that was the last question. I now hand the conference over to Mr. Vikash Singh for closing comments. Thank you, everyone, for joining us on today's con call. I would like to thank Jindal SAW management for giving us the opportunity and handing over the desk to Neeraj, sir, for any last closing comments. Over to you, sir. Thank you all. I have to thank all our stakeholders, shareholders for staying with us. Now performance is beginning to show up, and I just hope that the market cap would reflect the value that we have been creating and we have been working so hard to create. I hope and I wish all of you well. Definitely now we will be back after three months, with a robust result for the fourth quarter as well. Thank you very much. Bye. Thank you. On behalf of PhillipCapital India Private Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.