Ladies and gentlemen, good day, and welcome to Jindal SAW Limited Q3 FY24 earnings conference call, hosted by Phillip Capital (India) Private Limited. As a reminder, all participants line will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need any assistance during the conference call, 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. Vikas Singh from Phillip Capital (India) Private Limited. Thank you, and over to you, Mr. Singh. Good afternoon, everyone. I welcome you all on Q4 FY24 earnings conference call of Jindal SAW. 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, Mr. Narendra Mantri, President, Head Commercial and CFO, and Mr. Rajeev Goyal. Without taking any more time, I would hand over the call to Mr. Neeraj Kumar for opening remark. Over to you, sir. Your audio is not coming, sir. Neeraj, sir, I think you are on mute. Good afternoon, friends. Now is it okay? Yes, sir. Yes, sir. Okay. So yesterday we had our board meeting, and we declared our results. This quarter is the best ever result declared by Jindal SAW. This has been happening now for last few quarters, that every time we set a benchmark and we ourselves go and jump over it. This is primarily a culmination of, as I say, a lot of efforts. So now we do have a momentum, we have an order book, we have the capacity, we have the market, and we have all the other resources which are required to be able to do, perform in a very coordinated manner. So highlights of the results: standalone, top line INR 4,786 crores, EBITDA INR 890 crores, PBT INR 619 crores, PAT INR 452 crores. Now, when you compare it with the comparable quarter last year, which is 31st March or 31st December 2022, look at the results. There, there was a note. There was an accounting entry for which, there was an other income of INR 130. That is not there in this time. So when we make that comparison, you will see that the improvement or the development has been even more steeper than what the numbers tell you. EBITDA percentage, from 12.9% a year ago, now it is 18.6% in the current quarter. Likewise, if you see the consolidated results, EBITDA INR 1,030, gross income INR 5,697, PBT INR 700, PAT 512. So again, that indicates that our subsidiaries are doing well, especially our Abu Dhabi facility is doing very well. We have a good order book, stable performance, encouraging, very good. And a very important factor that has been supporting us over the last few quarters, that the commodity prices have kind of stabilized, or the progresses everywhere we are seeing that probably it has a little downward trend. So that gives us or puts us into a very, very good position. Turning our attention to the distribution of our income, which should give you a clear sense of the robustness or the quality of our income, the stability of our income. Water sector, approximately 68%; oil and gas, 28%; industry and other sectors, 4%-5%. Also, the diversification between the domestic and the export, very well balanced. Domestic, around 60%, export, balance 40%. So if you look at the matrix of the kind of industries that we address and the export versus domestic, this gives us a lot of comfort in terms of the revenue quality. It is not a spike, it is not one particular sector, or it is one particular... So it's not a flash in the pan kind of revenue. This is something why I'm highlighting, because we pay particular attention to this matrix, which is the quality of the or the robustness of our top-line revenue. Look at the debt profile. Even the turnover et cetera, has gone up... Jindal SAW net debt has come down from INR 4,200 to INR 3,900. Our total consolidated Jindal SAW business, it has come down from 56, INR 5,600 to INR 5,400. The institutional debt has come down from INR 4,900 to INR 4,700. So what this again tells you that after the M&A activity that we carried out for Sathavahana, which added a term loan of about INR 1,000 crore to the balance sheet, the debt is being managed well. Out of the total debt of long-term debt, we have only 1,800, out of which 8,000 is on account of Sathavahana, which is a very recent M&A activity. So the debt continues to stay within control. Working capital utilization will continue to go down because primarily all the cash that would get generated, we hope to generate a lot of cash, would be used for routine CapEx and reduction in working capital. We do not have any other M&A on the cards. We are working on capacity building by debottlenecking and capacity utilization at Sathavahana, because we see there is a lot of headroom there. With a marginal CapEx and debottlenecking, we can do capacity balancing and thereby enhance the entire capacity. So that's one area where the CapEx is going. We are also putting up new coke oven batteries, which is taking some CapEx. We are also trying to enhance our capacity for seamless pipes in Nashik. If you see Nashik, currently we have one piercer. Going forward, it has got two lines. One line is seven inches and below, but I'm talking about seamless tubes, carbon seamless tubes. One line is then above seven inches, and it goes up to 16 inches. Again, what we are doing is, we are trying to debottleneck back, create, put additional piercers so that the two lines work independently, so that in seamless, then in Nashik, we will have a dedicated line to 7—for 7 inches and below, and a dedicated line for 7 inches and above, up to 16 inches. This will enhance the capacity, this will improve the productivity, this will improve the market reach, and through this and a combination of different diameters of double bead LSAW which is dual bead, one bead on top, one bead, so that's a much stronger weld as well as spiral. We are looking at possibility that if we use the right grade of steel material, can we provide again a solution for hydrogen transportation? Because what we assume is that hydrogen may become an important factor for the clean energy, and therefore, we are trying to ready ourselves, besides addressing the market, to be absolutely ready for this important segment, and that is where the seamless, having a dedicated line for the 7 inches and above, and one dedicated line for below, plus these would help. By the way, we also have stainless steel. We can do large diameter stainless steel going up to 40 inches in diameter, and on the lower side, we can go to as low as 0.5. So with all this, we are wanting to create a full bouquet of products which can go into hydrogen transportation, wherever that comes. Now, moving from the financial highlights to the business outlooks, I think we have a momentum. We are likely to close the year on a high. The order book is good, $1.4 billion. We already talked about it. That's a sweet spot for us under the enhanced capacity. Usually, the fourth quarter is always the best quarter for Jindal SAW. We hope we will be able to repeat that this year as well. We have a momentum, we have a good order book, we have a stable commodity price. CapEx, already we have spoken that there is nothing major except for capacity balancing at the Sathavahana plant, a coke oven battery, and this dual double line for Nashik seamless so that the capacity goes up. Rest, let me now turn my attention to the market outlook. The way things are happening, first, we definitely are getting concerned, and we are watching the developments in Red Sea and around. Because we do know that Iran is kind of going all over, first they hit north, now they are trying to hit south. So U.S. is retaliating, so we just are seeing complexities developing in that part of the world. Hamas continues to be under huge pressure. Israel is not relenting, unlikely to relent, probably the world has now reconciled to it, and therefore, rather than now any negotiations, different people have different reactions. Some are supporting, some are waiting, and some are retaliating in their own way. That, how will it play out? We'll have to wait and see. But assuming nothing major goes wrong, we see oil traffic to pick up, both in India as well as in this part of the world. India, as we see now, deep sea, the KG Basin, especially in the Bay of Bengal, there's a lot of activity, both the PSUs as well as the private sectors, into their, production, exploration, expanding their activity. So overall, we see that the demand for pipes, for oil and gas sector should be there, should be robust. Water segment has been a very good initiative, very good opportunity for us. This, Jal Jeevan Mission has given a very robust and a sustainable demand for pipes of all categories. Our large diameter pipes, our DI pipes, our HDPE, we have benefited on all fronts. And the way things are, in all probability, there will be political stability and continuity at the center even after general election. So we expect that momentum to continue because still the oil, the water grid has not reached the desired level in the country. There are pockets where still it needs to be. There are pockets where it's there, but still a lot to go. So we see in the short term, definitely this water segment, the water demand for pipes in the water segment will continue to remain, very high. Two more small points I would like to touch before I turn my attention to questions. NTPC, now finally, after a lot of persuasion, we have been able to, get the Solicitor General to begin his arguments. Currently, the case is partly heard. That's good news, because then there is not going to be any change of roster or change of judge. It appears that now the argument is going to end soon, because once you have a partly heard, judge has given two dates, so you'll have to finish it. That's good news. Now, we are definitely seeing that there is a movement and there should be an end. So far, the last order that we had passed, we have taken note where the Solicitor General had said he has substantially completed his arguments and probably would need a small session of about an hour or so, and then he will end his arguments. After that, it will be an opportunity for us to rebut. So far, whatever arguments that we have heard from him, we feel that we are on a very strong ground. And we also feel that now there should be movement, and once all of these are argued very well at the High Court level itself, probably then the next steps towards a final adjudication would be now simpler and should not take very long. The last thing that I want to talk about is the joint venture. The Jindal Hunting joint venture, we have completed the API audit four rounds. It has gone very well. We are likely to get the API license in the next month or so. Likewise, the premium connection it does require API tester items from Hunting. All training, all uploading, trials, et cetera, are done. The final agreement will be inked any day. So basically now the JV will be in business commercial activity soon. The kind of orders that are lined up, we expect that in the, you know, year 2024-2025, which will be technically the first year of operation, because we are assuming that during this quarter we would get the API license and all that, the JV would have a profitable operation. The level of planning, the level of detailing, and the way we have managed our CapEx and costs, it gives us a lot of confidence, it gives us a lot of comfort that in the first full year of operation itself, the JV would be profitable and would contribute. Anyway, the JV's, the financial sector, everything is independent. We have a separate bank line, so there is no drain on JIindal SAW or any other of the subsidiaries. But on a standalone basis also, the company would be, the JV would be profitable in year 2024, 2025, which is its first year of operation. So far, the trials have been successful, results are good, people have witnessed it, clients are excited, and we expect that we will penetrate the market with this group. So with these initial opening remarks, financial results and outlook, let me stop here and take few questions from all of you. Thank you so much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from 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 a question queue assembles. Next question is from the line of Mr. Abhishek Maheshwari from SkyRidge Wealth Management. Please go ahead, sir. Hi, am I audible? Yes, sir. Yeah. Yeah, I can hear you very well. Thank you for the opportunity, sir. Glad to be back. Sir, so first question is regarding your exports to Saudi Arabia. I'm assuming a bulk of your, you know, revenues come from a whole lot of revenues come from Saudi Arabia. So, and the situation in Red Sea, it's not as if we can take, you know, Cape of Good Hope route, right? But, we can take the Persian Gulf route to export our products to Saudi, right? Is that, is that helping you, or, are you seeing some pressure on exports due to this? To classify that a bulk of substantial is coming from Saudi Arabia would not be the... If you look at the total pie of my revenue and the portion that has come from Saudi Arabia, yes, it is an important contract, but it's not that we are very, very highly dependent. And still the Saudi Arabia contract is very well running into the next year as well. So it's a large contract, total INR 3,000 crore, but split into two years. As far as transportation of pipe through ships are concerned, so far there have been no incidents. And unless you know the guys become reckless, pipes are of a very little consequence to anybody. It's not oil and gas, it's not a commodity. No pirate would be able to do anything with the pipe anyway. We don't expect that we are on the target, but if the entire route is disturbed, then as I already said, yes, that is a risk and it is also. No, sir, and that should be a point. But just wanted, for the sake of clarity, is there an alternative route to get the goods to Saudi? Because there is one route that is Red Sea, and there is other route through Persian Gulf, you know, through Dubai. So is there an alternative you are considering there? Yeah. Yeah, we can see. Okay. Saudi Arabia, if you see, it's kind of a very large peninsula. It has got, you know, the water channels on both sides. So suppose if one channel gets completely blocked or disturbed, then the alternate route would be available. But the proximity of each other is so much that if Iran is the one who is, you know, doing all this, then it is very unlikely that they will hit one and not mess around with the other channel as well. Mm-hmm. True, true, true. See, Cape of Good Hope doesn't come here. Cape of Good Hope is on the tip of the South Africa, so you don't need to go to South Africa anyway, if you have to go to Saudi Arabia from India. Right.... Understood. So my second question is regarding this QIP that you're planning, INR 1,000 crore. Sir, the tailwind is in our, is in our favor. We are generating a lot of cash, working capital requirement is coming down. So just didn't understand the whole purpose of, raising so much money right now. Let me put that in the right perspective. At this point of time, we have just keeping all the enabling provisions ready, so that based on the guidance that we get from the market analysts, merchant bankers, other experts, if required, we would be able to close this transaction within a short time frame, say about, 3-4 weeks. But the QIP has not been put on the calendar as yet, and therefore, you know, at this point of time, besides saying that we are in a state of readiness for a QIP, anything else would be speculative in nature, because we don't have any date as yet. Second, the use of the QIP also has been well spelled out in our board resolution, in our communication to everywhere. So we have made it very clear that the QIP would essentially move towards reducing the debt burden. Essentially, then the debt... Whenever that QIP happens, let me just caveat it, I'm not putting a date at the end. Whenever that happens, the Sathavahana loan would be completely repaid. So it will be used for the reduction of the debt on the company. But when it happens, as I told you, we are keeping the thing very... There are too many factors. There is the market factor, there is a general election, there is a requirement. So at this point of time, is the company in dire need of that fund in any manner? The answer is no. And therefore, we will time it very properly based on expert advice, and it would be used whenever it is done, essentially to reduce the debt. Any other discussion at this point of time on QIP, I think is speculative. Let me see if I get this right. From your perspective, in maybe coming years, there could be substantial growth which can come in, and you want to be in a state of readiness, okay? If that growth does come in, where you can see 15%-20% growth in revenues, you are in a position to, you know, meet all your working capital requirements so that you do not have to forgo that growth. Am I getting it right? That could be one of the follow-up, yes. The whole idea of dressing up the balance sheet, the whole idea of reducing the debt burden, lightening of the balance sheet, is obviously to, you know, be in a state of readiness, where the financial health, the capital structure is such that it can support, rapid growth. That, yes, that is one of the, definite benefits that we might achieve out of that. Understood. Thank you so much. That's all from me. Thank you. Thank you so much, sir. Ladies and gentlemen, in order to ensure that the management will be able to address questions from all participants in the conference, please limit your questions to one or two per participant. Should you have a follow-up question, please rejoin the queue. Thank you. Our next question is from Mr. Kirtan Mehta, from BOB Capital Markets. Please go ahead, sir. Thank you, sir, for giving this opportunity, and congratulations for sort of good set of numbers continuing. First question was about the Hunting JV. We would be basically getting the API approval sometime this week, and first year would be the first operation. I just wanted to understand in terms of the scale of operations that could develop there eventually, what could be the capacities, revenues, and sort of the profitability? The capacity can go up to 70,000, 70,000 joints per annum. When you say joints, it is both the pin end and the coupling end, that is called a joint. So 70,000. Basically, if you talk in terms of revenue, it has a potential of approximately $100 million, if the market size is good and we are able to hit all the value-add incentives. Because, you know, coupling also, we can go for 13 chrome, we can go for higher, plus we can go from base grade. Our effort would be to go for a high, high value-add products. And, you know, enter the club of the JFE and the Sumitomo and, then audit those guys. If you are able to enter that, then it's a profitable business. So the top end of 100 is what this JV has the potential. When we look at sort of the India market, what percentage of the market would we be able to sort of address with this? Would it be 5, 10%, or it's sort of a larger group? Let me, in terms of the product range, we can address the entire product range of premium connections in India and most part of the world, because this is the only facility which can go right from 2 7/8 inches up to 36 inches. Obviously, the higher side includes collectors, but it does the same function. So it can cover the entire range. So product wise, we are very versatile, we are very capable, and we can upgrade. How much we can achieve in terms of the market penetration, market share, we have to find out. As I told you, so far, we have enough orders where we are going to be busy and earn profitably in year one, because we already have received all the pre-qualification. See, in such segments, one critical milestone is receiving the pre-qualification. Based on the track record and experience of Hunting and Jindal, the JV has already been qualified to bid for regular tenders in ONGC in the major. We are also working with other private sector players like Reliance, et cetera. There, they call it the vendor qualification. So currently, a lot of pre-qualifications are in place, and the vendor qualifications also for all major players in India are in place. We are using the Hunting network to try and address the export market as well in terms of the vendor qualifications. So we think that we are making the right start for the JV. Because of the domestic production, would we have the cost advantage over the imports? This project is completely under the aegis of Atmanirbhar Bharat. So not only that we have a cost advantage, an income tax advantage, because, you know, there is a potential rate for perpetuity. We also expect that the government of India might give us the right kind of protection. As long as we are able to satisfy the demand, we may even have some protection as it is in other products under this Atmanirbhar Bharat scheme. But obviously, the cost advantage is there. That is one of the unique advantage of this, not only for the domestic market, but also for the international market. Understood, sir. Just one more question in terms of sort of a more of a medium term, sort of the outlook. So currently, we are primarily dependent on water and oil and gas sector, and we are trying to develop our capabilities into the hydrogen sector. Are there any other segments that we would like to target over five years, sort of looking at a five-year horizon? Or are we sort of comfortable that these two segments gives us enough opportunity to grow our revenue base from here? Okay, one area where the stainless and seamless can go is the industrial sector. Because cheaper products for fluid, transportation, drilling is all oil, gas, water, and all kinds of things. The other one is cheaper products are used in industrial sector, where it is used as a heat exchanger, boiler tube, sugar industry, refinery. So that's the industrial sector which we plug all and into an industrial sector. So that's one area where we can, but, there the demand will not be so high that it can absorb our entire capacity. So the dependence on the water as well as on the oil and gas and this part of, will be there definitely in the short to medium term, till hydrogen becomes something very big. Right. Just last follow-up. In terms of the sort of the water sector, while we are primarily focused into the India at this point, is it possible to leverage our expertise to basically target the export market in the water segment as well? And would we be competitive in the export market there? Abu Dhabi facility is completely catering to the export market. Not a kg of DI pipe from Abu Dhabi is coming into India. So Abu Dhabi is a completely... If you see in our performance, the way you say export market in country other than India are getting addressed by Abu Dhabi, they are doing very well. Last time also, the earlier question was about Saudi, that's the water pipeline. So we are addressing wherever we get an opportunity. In DI, now we have so much of, we have close to 7.5 lakh tons of capacity in DI in India. But, since we are strategically located in west and south, we are busy with the Indian demand itself and little requirement for us to export DI pipes abroad, except for small diameters. Thank you, sir, for this clarifications. Thanks. Thank you. Thank you so much. The next question is from the line of Priya, Equitas Investment. Please go ahead, ma'am. Thank you for giving the opportunity. My first question is in terms of the interest cost, what will be the breakup of the Forex impact and, debt? The forex impact in this quarter financial charges are hardly anything. Okay. In terms of other income, we've seen a substantial increase on a quarter-over-quarter basis. What would that constitute of? Other income significantly increased. No, if you compare with the last quarter, there was INR 113 crore of revaluation accounting entry for RPS, which is not here this time. Oh, no. Okay. Hold, hold, hold. No, other income is what? 60/40, what is it? Just give me a second. Let me have a look at it. Because it's - I don't think it's significant. See, on a top line of INR 4,000 crore, it is at two digits other income. What is it? Sure. In terms of UAE, what would be an execution clear date for our order book? You are talking about Saudi Arabia. I told you it's next year. It will spill into next year. It will complete in the next year. Oh, okay. The entire would be next year. Okay. Thank you. That's it from my side. Bye. Thank you. The next question is from the line of Ashutosh Garud from Ambit Asset Management GCP PMS. Please go ahead, sir. Hello, sir. Yeah. Am I audible? Yes. Yes, I can. Just a little louder and a little slower, please. Great. So I just wanted to understand the broad, I mean, cycle of our industries. Historically, we have seen that this industry has been fairly cyclical, and if I see the results in the recent few quarters, we have on EBITDA level, margins, we have recorded, very, very good margins, which are historically very high, especially in the current quarter, we have recorded margins which are a decade high kind of level. So just wanted some clarification from the next 2-3-year journey for ourselves. From a margin perspective, what would you like to guide on EBITDA level and from a top-line growth perspective, given the kind of utilization levels you are, maybe you can throw some more light on the, what kind of utilization levels you have in the sub-segments, apart from just being in, steel pipes, maybe there are other sub-segments which you can define for us, to give us some clarity over the next two, three years' journey from growth and the EBITDA margin, sustainability, I have to say. Yeah. You have asked multiple questions. Let me try and take it one by one. A, in terms of capacity, as you know, we are improving capacity, and we are working at a high capacity utilization, but we have enough headroom where the whole operation can grow without a significant step jump. So that's first point. Second, you asked about future outlook. Next six months looks strong because we already have an order book, we have... There are the pipeline is healthy. The six months look very strong, but beyond that, it is something like we will have to win the contracts. It is still not... So we are hopeful that we will have a good or a robust demand, but the confidence level that we have over the next six months is higher than beyond that. So that would, that should give you some guidance about... Because, see, the good part is that, the Indian economy, if it continues to grow at a robust pace as a leading world economy, we are one of the core sectors, so we do expect that we should get that, benefit. We should have the support of the growing demand in a growing economy. Right. So when you said you are operating at a high level, high utilization level, what is the utilization levels currently? No, see, I have always maintained that percentage would be misleading, primarily because uncertain and actual production in terms of tonnage, how it is measured, there is very little. But let me put it this way, we can grow the business easily by 20% without any significant capital. Because the current level of, say, INR 20,000 crore, we can go up to INR 25,000 crore without any significant capital. You can grow up to? Sorry, I missed the number. INR 25,000 crore of top line without any significant capital. Okay. Thank you, sir. Thanks so much. Thank you so much. Next question is from the line of Shweta Dixit from Systematix Group. Please go ahead. Hi. Good evening, everyone. Thank you for the opportunity, and congratulations on a good set of numbers. I just wanted to ask, the volume numbers for the quarter, does this include the Abu Dhabi volumes as well, or is it just from Indian operations? ... No, probably you'll have to repeat your question. You are not very audible. The volume numbers reported for the quarter, around 442,000 tons, does this include, this is, consolidated volume numbers, which include Abu Dhabi as well? No, no, this is standalone. This is standalone. Could you throw some light on the Abu Dhabi volume numbers for the quarter? Abu Dhabi volume numbers for the quarter, normally they do 2 million, right? So for a quarter, they would be doing something close to 50,000. 63,000. So that's 63,000. 60,000 tons? 63,000 metric tons for this quarter. Okay. Yeah. Today, the run rate is upward of 2 lakh. So roughly 50-60 per quarter is an average run rate, and we are doing well. We have a sustained order book for that. All right. The next question, you said that orders are already lined up in terms of the Jindal Hunting JV for the premium connections products. Could you quantify any number on the existing order that are lined up for that? Please allow me to declare commercial production first, and then I'll talk about order book. Okay, sir. That's it from my side. Thank you. Thank you. Thank you. Next question is from the line of Mr. Ram Modi from Prabhudas Lilladhe r. Please go ahead, sir. Sir, I just wanted to check, what the... Are the margins the same as for the new orders, what we are bidding or winning, because I believe there may be some high margin orders which we would be executing during next two quarters, but are the new orders coming at the same margin? Okay, let me add that, yes, that is one thing that, one of the earlier, questions was, but see this 18.6% EBITDA margin, how sustainable is it? No, we expect this to settle down a little bit, but, it will definitely not go as below as we have been doing in the past. So 18.6 can settle down a little bit because some of the orders, we are getting the advantage of the stabilizing commodity prices. So either with a lead or a lag, that will settle down. So 18% should settle down, but I think it should be, let me not speculate because it relates to the pricing strategy, but I think it should be enough for me to tell you that it will not be as low as, 12, 13, 14 that was there, but we expect some settling down of 18.6. Okay. And, sir, what is the quantity of the order book? We have around $1.45 billion of orders on the domestic front. Yes. What is the volume of the order book? The quantity is about 1,400,000 tons. 1,400,000 tons. The net NSR would be around $1,000 for us, for a pipe. Those calculations you can do. Yeah. Yes, sir. Okay. Okay, and, lastly, sir, in terms of, how is our stainless steel pipe division doing? Because we do not have a breakup there, but how are the volumes and how are the margins and realization there? It is likely to pick up significantly. It is doing well because there, our major achievement in the stainless steel segment has been so far, getting pre-qualifications into key industries like nuclear space system, getting into higher segments like super duplex, and those moving away from the base grade of, technical parlance, that is, as it is called, the 304 and 316. So those are the significant developments that we have achieved. Now we expect that there should be a steep growth in the market. Instrumentation field, we have made some very good progress. Those are, again, the focus on our stainless steel business is to focus on, high value-added products. Okay. Okay, thank you. Thank you. Thank you. Next question is from the line of Mr. Vipul Kumar Shah from Sumangal Investments. Please go ahead, sir. Hi, sir. My question relates to capacity of Sathavahana. So what is the additional capacity we are getting for this acquisition, and how much time will it take to reach those capacities? Okay. Currently, we are at 200,000 tons per annum. With all the debottlenecking and improvement and efficiencies, it is likely to go up to 2.5. The time taken to go from 2 to 2.5 in terms of capacity will be close to a year to 15 months. Currently, we are at a high capacity utilization of over 80%. At Sathavahana, right, sir? Yes. Okay. Okay, sir, and regarding this Hunting JV, what type of capacity utilization we can expect in first year, sir? Please allow me to first declare this as a commercial production, then we can talk about it, because the compliance guys sitting in front of me are saying, "Don't make speculative statements. Okay, sir. Thank you, and all the best. Because unless I have commercial production, if I will cover. Once I have commercial production, I would be able to talk about this, and I'll be able to very openly talk about this with you. Okay, sir. Thank you. Thank you. The last question is from the line of Dev Desai from Niveshaay Investment Advisors. Please go ahead. Congratulations on the good set of numbers, sir. I just wanted to understand on the competitiveness of our products. So, basically, like you all know, China is opening up, and that could be an intense competition that we might experience from China. So how- Hello? Excuse me. Would you just repeat your question, please? You are not very audible. What, what are you wanting to look at? Hello, am I audible now? Hi. Just repeat your question, please. Yeah. So I wanted to understand on the, Chinese competitiveness. So basically China is also opening up, and there is a, you know, a lot of, intense competition that we might experience from China. So I just wanted to understand how competitive, we are in terms of quality as well as pricing, when we compare us with the Chinese, players in the market, especially in the export market. Understood. China is not a competition to us at all, primarily because quality-wise, we are far superior. We know, cost-wise, they are much cheaper. But now, in India, there are no Chinese products which are allowed. Most of the other countries also, who are quality conscious, are banning Chinese. So basically, we don't have any competition from China because there are two different markets. One is a quality conscious market, where we are very competitive because we compete with the other Indian peers and the Europeans. And there is a, you can say, less quality conscious market, where we don't even bother going, because that's what... That's where China is. So we don't see much competition with China, because we, we address different kind of markets. Correct, sir. So, sir, also, I just missed those numbers. You mentioned about the segment, sector-wide aggregation of our revenues. Can you please repeat those numbers? Okay. Of revenue. So, you mentioned that the water sector was around 68%, oil and gas was... So I just missed here. Okay. Water, 68. Oil and gas, 28. Industrial sector, around 4-5. Okay. That's very- Export, forty. Correct, sir. That's very helpful. Also, sir, in terms of order book, how is our order book bifurcated in terms of oil and gas and water, and also in terms of domestic and exports? Hold. Domestic and exports. Order book for the domestic is around 65-35. Export, 35. Domestic, 65. Correct. You're looking for water versus oil and gas. Just one second. Okay, same. Sir- You can take it 70/30 broadly or 70/25/5 maybe for industrial sector. So order book is also following the same pattern as our revenue. Correct, sir. That's very helpful. Also, sir, so, in the exports market, where are we seeing demand from? Are we seeing it from the Saudi Arabia, so, MENA region, or, we are also seeing it? Water segment, lot of demand from MENA. Oil and gas, also from MENA. So MENA region- Are we, are we seeing any demand growth from the American markets? American markets? No, no. We don't address the American market either in the DI because they have a different socket design, and large dia going to America is a, we have a freight disadvantage. So American market is available to us only for our seamless and stainless, plus now with Hunting the premium products or premium products. In large dia and DI, we don't address US market. Okay, that's very helpful. Thanks a lot, sir. All the best for the future. Thank you. Thank you. Ladies and gentlemen, that was the last question of the day. I now hand the conference over to Mr. Vikash Singh for closing comments. Over to you, sir. On behalf of Phillip Capital, I would like to thank Jindal SAW Management for giving us the opportunity to host the call, and I would hand over to Neerajji for his closing remarks. Thank you all very much. We are very encouraged by the kind of response that we are seeing from all the stakeholders. So thank you very much. We will continue our good work, we will continue the momentum, we'll continue to work hard, and hope to see you next quarter. Thank you. Bye. Thank you very much, sir. On behalf of Phillip Capital India Private Limited, that concludes the conference call. Thank you for joining us, and you may now disconnect your lines.