Ings and Chairman, good morning and welcome to the Ramkrishna Forgings Q4 FY25 earnings conference call hosted by Nuvama Wealth Management Limited. As a reminder, all participant lines will remain in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal the operator by pressing star, then zero on your touchstone telephone. Please note that this conference is being recorded. I would now like to hand the call over to Mr. Raghunandan from Nuvama Wealth Management Limited for opening remarks. Thank you, and over to you. Good morning, everyone. Thank you for joining the call. We are pleased to host Ramkrishna Forgings Q4 FY25 earnings call. From From the management team, we have Mr. Naresh Jalan, Managing Director; Mr. Chaitanya Jalan, Whole Time Director; Mr. Lalit Kumar Khetan, Whole Time Director and Chief Financial Officer; Mr. Milesh Gandhi, Whole Time Director; Mr. Rajesh Mundra, Vice President Finance and Company Secretary. We thank the management for giving us the opportunity. Initially, we'll start the call with opening remarks from management, and then we'll open for Q&A session. Over to you, sir. Yeah, thank you, Raghu. Good morning, everyone, and thank you for joining us on this call to discuss the Q4 FY2025 earnings. I trust all of you have had a chance to review the earnings documents that we have shared earlier. Financial year 2025 was a year defined by both challenge and progress. Despite the complex macroeconomic environment, we made good progress on multiple fronts. It has been a good year in terms of order swings and customer addition, as we have reported around 4,600 crores of new orders during the year, which has been well diversified across geographies as well as across end-user industries of auto and non-auto and railway. My colleague Milesh will speak later on this. Coming to capacity addition, I am sure you all would recall that in January, we commissioned our cold forging capacity of 25,000 tons, and in March, we commissioned our hot forging and warm forging balance capacity of 14,250 tons. With this new capacity on stream right now, present at 268,400 metric tons at RKF, I'll explain that one. On 27 March, NCLT approved the merger of ACIL into the parent entity, with the appointed date of 20 February 2024. This is a key milestone in our plan to simplify our business structure. The final step, merging Multi-Take Auto and Malmetallic into our Ramkrishna Casting Solutions, is underway and will be completed during this year. Now, let me share some financial highlights for the fourth quarter. We have reported a consolidated revenue of INR 947 crore, lower by 3% on year-on-year basis. EBITDA excluding other income was INR 99 crore in Q4, compared to the stated EBITDA of INR 188 crore for Q4 last year. Profit after tax is INR 204 crore in Q4 FY25, compared to INR 65 crore in Q4 FY24, and how this PAT was added by the deferred tax credit on account of merger of ACIL, amounting to INR 223 crore. Coming to the financial highlight on the balance, sorry, yes. We reported consolidated revenue of INR 4,034 crore, higher by 9% compared to the previous year. Full year consolidated EBITDA stood at INR 560 crore, compared to INR 770 crore for FY24. Profit after tax for the year is INR 332 crore, compared to the stated PAT of INR 283 crore in FY24. In April 2025, India Ratings has upgraded the company's long-term bank loan rating to Ind AA with a stable outlook from Ind AA minus, and also affirmed the short-term rating to Ind A1 plus. Now, regarding the inventory discrepancy, the company has received the interim joint fact-finding report from the external agencies, which have confirmed that certain erroneous entries in production and non-recording of rejections at some plants have resulted in overstatement of inventory, as book stock of these inventories were higher than the physical stock. The discrepancy amounts to INR 220 crore for FY2024-2025, and INR 50 crore for 2023-2024 as accounted for in the accounts. The same has been accounted for in the financial results of the company for the quarter and year ended March 2024 and March 2024, respectively. I would like to state here that as a management team, we firmly believe that there will be no further accounting or significant accounting or financial impact on the books of account arising out of the balance part of the fact-finding step being carried out by the independent agencies. The approximate adverse impact net of tax on net worth of the company is around INR 202 crore, which is around 6.7% of the net worth of the company as of March 31, 2025. The promoter group remains fully committed to bridging this shortfall, reaffirming its dedication to safeguarding the interest of all stakeholders. Details of immediate actions to be undertaken by the promoter group will be covered by our MD, Mr. Naresh Jalan. Now, I hand over the proceeding to Mr. Naresh Jalan, our MD. Thank you. Over to you, sir. Thank you. Good morning to everybody. Thank you for taking time to join the call. The interim fact-finding report has come, and in response to that, we have implemented corrective measures, including enhanced recordings, auto recordings, and stricter controls, and improved processes across our manufacturing process. This is the first instance for the company in its history since inception, and we ensure, and we will do what all is required to ensure that this never happens again, to continue to adhere to highest standards of corporate governance while conducting affairs of the company. As indicated and committed, the promoter group would come forward to make good the shortfall arising due to the inventory discrepancies. In order to facilitate that, the Board of Directors has approved the issuance of 975,000 warrants to promoter entity at a convertible into equity shares of 975,000 at a face value of INR 2 each at a price of INR 2,100, aggregating to INR 204.75 crore. As promoter entity, we commit to get this entire money within this financial year before the end of this financial year. Now, I request Mr. Milesh Gandhi to update the investor group in terms of the order wins and the market conditions currently. Good morning. Thank you, Naresh. I would like to communicate the order wins in Q4. The company received new order wins worth INR 710 crore for a program life being four years. Against the total order win, 74% are from automotive segment, while 23% is coming from the non-automotive segment, which is in line with the diversification strategy of the company. We are also looking forward to the next level of growth that is coming from the passenger car segment. We believe the revenue stream will start from the financial year 2027 in a big way. At the same time, we have also received orders from Indian Railways for the supply of fully assembled bogie frames. This bogie frames assembly will help us to demonstrate the full potential of our fabrication business. That is, the natural progression from the individual frames and bolsters to the fully assemblies makes it complete. That's from my side. Thank you, Milesh. Raghu, now we can open the floor for the Q&A session. Thank you. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Manish Ostwal from Nirmal Bang Securities Private Limited. Please go ahead. Yes, sir. Thank you for the opportunity, sir. My first question, this inventory-related issue. The reported number is much higher than what we shared at the time of the last call. In the no-show account, the management said they did not see any significant impact. Still, the joint factor findings committee report is not finalized. On what basis are we saying that? Secondly, can you comment on the higher number than what we indicated earlier? Joint fact-finding committee interim report has already been published based on the PV which they had conducted. Post this, right now, only forensic is going on, which will be assured that that is basically to estimate the reasons why this has happened. There is not going to be any financial impact in the balance sheet. We are absolutely firm and sure that there is not going to be any financial impact in the balance sheet based on whatever we have seen, and we have provided 100% of what we have been given from the third party. In terms of why the reasons, I think reasons for this why it has happened, it is still, I think, only a week left when we will have the first full final report. The same will be made public to understand the actual reasons and final reasons for the same. In terms of why the quantity has gone up, we had given our estimates based on whatever we at that period of time were able to assess. As we had said that period of time also, the assessment is still under progress. During this third-party PV, we had closed down all our operations for a couple of days, and we conducted the entire piece-to-piece PV across all locations. Whatever every single piece was accounted for so that every single thing will be what should have been provided, and so that in the near future or near decade, never again this may occur. We have taken a prudent step to close operations for a couple of days and ensure that every single thing is provided for, and in future, this never ever occurs again. Quite a solid statement, sir. The second question on the gross debt and the working capital increase we have seen during the year, March 2025 versus 2024. Any specific reason for this kind of working capital increase, and where do you see the working capital base to settle in 2026 and over the medium term schedule? In terms of working capital increase, if you look at the overall working capital, it has gone up by almost INR 400 crore during the year. That is mainly, as we have discussed in the past, due to increase in transit time. Rates need to, so the goods are getting more at the industry. Plus, as you know, a lot of new development has happened during the year due to these new customer wins and new orders for which bulk supply are yet to start. Accounts have been built up on all those accounts. In the upcoming period, you will see an improvement on these accounts. This is because the increase in turnover will help to improve the moderation in inventory on these accounts. Also, I think one thing which should be noted is that the new developments which went into pipeline over in last quarter, to fill up the warehouse in overseas market, we had to ship parts which is getting consumed in this quarter. Once that consumption starts, automatically normalization of the working capital or the debt will start happening. In terms of future, we can assure the investors with the current cash flow which we see in terms of our business and the way the business is performing right now, and with the kind of robust pipeline which we believe we have, and with the kind of customers we have been able to build, we feel that we will be able to reduce substantial debt, including working capital, going forward in coming days and coming months. By the year end, basically FY26, a substantial reduction will happen in terms of the overall debt is concerned. Okay, sir. Thank you for answering my question, and all the very best to come out strongly from this issue. Thank you. Thank you. The next question comes from the line of Amitosh Shah from DAM Capital Advisors. Please go ahead. Yeah, good morning, sir, and thanks for the opportunity. Again, first question on standalone Q4 revenue, we believe that there is no one-time adjustment in revenue. Entire inventory-related impact is in raw material side, right? The contraction in revenue is too high compared to the peer group, Bharat Forge and all those leaders reported number. At the same time, commercial vehicle production, Q on Q was also reasonably good. Any specific reason apart from this inventory-related thing? Mitol, I would like to explain this. See, after this inventory issue, whatever happened and the situation, we have now decided to take no chances with any recognition policy. In this quarter, we have not accounted for the goods which have left the factory but not reached the customer's place. On that account, about INR 100 crore of revenue has not been recognized in this quarter. Going forward, we will follow this policy only. Apart from that, you know that there has been a duty imposed in the U.S., and in a lot of goods, there has been, and from the mark, the duty of 10% we are paying on our goods. Since March, whatever the goods we are paying duty in the U.S. is being recognized on payment of duty. Earlier, once it left India, we have recognized still. As now, the income is GDP, and there was no duty earlier, so it was getting recognized. INR 70 crore on account of that has not got recognized in this quarter. Going forward, it will be a normal practice, and there will be no impact of this accounting in the future. That amount has been built in basically inventory from data to inventory. Mitol, to answer you very straightforward, whatever you've asked for, INR 170 crore approximately has not been recognized. Looking into prudence of future, as said in my earlier statement, we have taken cognizance of whatever has happened. Going forward, to get into best practices, we have basically reset our entire recognition model. INR 170 crore in all has not been recognized as revenue, which will be recognized in coming quarter. Going forward, this is going to be the policy. One reason basically is the duties which have not been paid at the port. The revenue for the same has not been recognized. Second, for the goods which have left our plant but have not reached customer and have not been recognized as sales. Taking both together, it's close to INR 170 crore plus, which has not been recognized in revenue in quarter four. This question is then FY26 revenue, do we still maintain that guidance of about 15-20% revenue growth potential? I am absolutely sure that we are looking at 15%-20% revenue growth in FY 2026. This revenue recognition policy, which has changed in one quarter, this is going to now be always there. Obviously, this INR 180 crore is going to get recognized in this quarter, leaving no stones for future reorganizing in the revenue recognition policy. Right, sir. And just lastly, on the balance sheet side, it is almost now INR 1,800 crore-INR 2,000 crore type of a debt. Of course, you explained about working capital, but still it remained elevated over the last few years. So any roadmap in next two or three years, where do you want to bring it? I don't want to give you a two or three-year roadmap. Basically, by FY2026, we can assure you or the entire investor certainty, you will see substantial debt reduction. One is there are a couple of reasons because of that. One, the warrant money coming in. Second, due to tax refund, which will get based on the ACIL merger. Third, the free cash flow from the debtor. And as well as we are at the end of our CapEx cycle. I think by September, all CapEx which you are seeing right now, basically 8,000-ton press or aluminum forging press, all these things are going to come to an end. July or mid-August, all the presses are starting and will start giving revenues. We don't look at any substantial or any meaningful CapEx going into the second half of the year. We are absolutely sure by the end of FY 2026, there will be substantial reduction in the overall debt of the company. Best wish, sir. Thank you a lot, sir, and best wishes. Thank you. Thank you. The next question comes from the line of Chirag Shah from White Pine Investment Management. Please go ahead. Thanks for this opportunity. Please go ahead. Yeah. Thanks for this opportunity. Good that the disclosure has really improved from the company, and you are upfront on that. Really appreciate that. Two, three questions. One, how should one look at the new margin and ROC, ROE guidance? You had indicated that you will start on this based on the findings and conclusion of the same. Have you formed a thought, or do you want to wait for the final forensic report to share your sustainable return on capital and margin guidance that you used to share earlier? That is question number one. Chirag, I think in terms of margins and other things, I think this was one-off incident. This does not dent company's performance, overall performance, or growth aspects going forward. One-off incident does not take away from us our capability to produce. The kind of pipeline and the kind of projects which we have implemented gives us confidence of going forward, robust top line as well as robust bottom line. In terms of%, I would not like to comment. In terms of guidance, I would still maintain that we are going to create healthy margins, and which in coming quarter, we will be able to, coming quarter onwards, we will be able to demonstrate. Okay. So why I was asking is because there will be a permanent resetting of your gross margin, right? Because of the accounting lapse, not accounting lapse, but whatever errors which have happened. That is why I was asking the question that there will be a permanent rebasing of your margin and it will have any impact on ROC. No, I think in terms of there is not going to be any permanent with one-time inventory which has not, which excess inventory which was there in the system, or say basically that has got removed. I do not think that really creates any gross margin issues or anything. Basically, we would like to reset the balance sheet. We have one-time cleaned up the balance sheet. Whatever provisions or whatever write-offs we had to take, we have taken that upfront, looking into the future and looking into the better prospects going forward of the company. That does not absolve us from the responsibility of going ahead and creating better margins, healthy margins, and good conditions. Basically, this reset is giving us more opportunity to do better things than concentrating on what has gone by. Yeah. The second question is if you can just share some thought on how did this INR 2,100 pricing was determined. I'm assuming it is significantly out of the money. It is more than 3x the current price or something like that. So how was it determined that if you can share some thoughts? Basically, Chirag, this is as promised or as agreed in the previous call. We have taken this as a lesson learned. As agreed and as committed to my investors, we will look at the minority shareholders' benefit and to affect minority shareholders, minimum effect to the minority shareholders. As such, if you see this pricing has been arrived with an objective of only having 0.5% overall equity dilution, so that it is not affecting the overall investor community who has put trust in RKSL for past so many years. We did not want that one such issue should dent the entire confidence of our investor community. That is the reason this premium has been paid to basically give a message to the overall investor community that promoters are withstanding with the company. They would want the investor community to be assured that we are not here to make short-term gains or looking at the future of the company. I do not think we have paid a huge premium out of it. I am very sure with the coming years of performance of the company, in coming couple of years, I will not be out of money. We will be in the money in going future. I presume that you have full intent to convert, right, to subscribe it. It's not that you will allow it to let. In my opening statement itself, I have said that this entire money will come within this financial year. It is not going to take 18 months' time as been prescribed in the warrants. I can stretch it up to 18 months. I have very categorically said that we will do because I need to borrow money. I do not have a ready line set up to get the money tomorrow itself. Taking that time into my hand, we have basically taken it as a warrant. Otherwise, we could have done it as a preferential if I would have had ready money in my account. I will need to borrow through LAS or something. We have basically taken time. I am absolutely sure and I commit to get this entire money before March 2026 is completed. No, sir, really appreciate your stance on this and your disclosure. One last question, if I can. Based on the findings till date, is this more of a system error? Is it more of a human error? Is the error at the production level or is the error at the accounting or, what do you call, interdepartment transaction level? If you can share some light, it would be helpful. Whatever findings till now we have in hand, I can tell you it is not intentional. It is not a purposefully made error. The company has grown faster than its system. I can only give you a very simple answer that the company has grown faster than its system. That is my fault that we have not been able to bring in or get a more robust system as the company grew. That is the learning lesson we have taken. We are fixing the system in a robust manner so that in future, with the growth, my system is also upgraded in such a manner that in future this never occurs again. Great. This is helpful, sir. Thank you and all the best. Thank you. The next question comes from the line of Dhaval Shah from Gillick Capital. Please go ahead. Yeah. Hello. Hello team. Thank you for the opportunity. Very happy with the message, the way you've articulated everything. It's given a very strong message across. Sir, a couple of questions on the balance sheet. You mentioned about the non-recognition of INR 170 crore of revenue. Does it lead to the similar impact on the inventory and higher receivables? Plus the borrowings, is my understanding correct? Dhaval did not attempt to go with the borrowing. Suddenly, revenue has a counter impact on the inventory. When the revenue will be reorganized, inventory will increase to that extent. Suddenly, the margin value will decrease to that extent. Rest all is same, normal. Okay. On the additional margin front, I mean, the sir said about stronger margin. Would you like to share anything in terms of the numbers? I mean, the earlier guidance which we were giving regarding 0.5-1% increase every year. Do we hold by that guidance? When we look at utilizing the full capacity, are we still aiming at around 24-25% additional margin by FY2028? Dhaval, in terms of my aspirational margin, we still are intact of getting to 24%-25% margin by FY2028. In terms of quarter on quarter, I would not like to give you any next quarter or overall next two quarters guidance. I can only confidently tell you by end of FY2026 and FY2027, you will see us getting back to much above what we were in the past. We continue to strive for excellence. Our endeavor and our entire effort on our footing is to basically do whatever is required to negate what has gone by in terms of one incident. One incident cannot rock the overall boat of our future and 4,000 people of RKSL. I am very confident that going forward, margins will be robust. My 24%-25% vision or margin for FY2028 still remains intact. With the kind of activity we have done in terms of capacity and with the kind of activity which my marketing has done in terms of bringing in new railway business, in terms of fully assembled supply of bogie frames, and the kind of strong customer base which we have built over the last couple of quarters in terms of getting into PV, which is going to show in FY2027 in full scale, you will see a significant improvement and a robust margin profile going forward. Noted. Noted, sir. Last question regarding the kind of business environment you are noticing for the US market. It's been a couple of months since the Paris talks have happened. What sort of conversations are you having with the customers, the short-term outlook? Did they stock up on inventory? How are they giving out their purchase orders now? Second is, have we won any new business after the tariff announcements have happened in the month of March? Thirdly, in terms of negotiating after June, July onwards, when the three-month pause is over, who is going to bear the tariff? How are we going to work around it? Some broader discussions which the customers will be having at their side, any insights from there, if you can share, it would be really helpful. Because right now, everything is low variables. Everything is very volatile. Some direction will help from your side. Thank you. I think, Dhaval, to answer your questions, a couple of things. One, at the right moment, we have set up our Mexican entity. I can tell you this Mexican entity is going to be the golden goose for us for the next three years' time. We are seeing huge traction for our Mexican entity to do value add over there while we send forgings from here, from India to the U.S. and to Mexico and get it fully machined and supplied from there. Second, we have had no order reset right now from any of our customers. No customers have come back to us asking for price decreases or absorbing the tariffs. Tariffs, whatever is going to get applied, is going to be paid by our customers. Yes, overall, the market demand in the U.S. is subdued. Whenever we speak to any of our customers, we are of the opinion, and they are also of the opinion that very soon or maybe in a couple of months, they feel that it is going to be a hockey stick recovery, which is going to be extremely fast. If you see the market right now over there, it has gone below the replacement. As soon as things settle down, I think you will see a hockey stick recovery in the North American market. We are extremely confident of that. In terms of new order wins post this tariff, yes, we have had order wins post this tariff from a couple of new customers in North America. We would not like to name the customers, but it is on the off-highway side. It is on the PV side, and also it is on the CV side. All the three sides, we have won new contracts, both from March till right now in the month of May. As well as in our Mexican entity, we have won a very large order for basically conversion of castings to finished product and supply from our Mexican entity. In terms of right now, market is down, but we do not see that going forward. You may see any moment, maybe it may happen in the next two months. It may take three months, but it is not that it is very far away. The recovery in the market is going to be very, very steep. Got it. Very encouraging. Thank you very much. Good luck to the entire team. Thank you. Thank you. The next question comes from the line of David Rathmosa from. Please go ahead. Hi, Naresh. Thanks for the call. I have two questions. Firstly, on your revenue recognition that you've mentioned, the INR 170 crore impact in this quarter. Effectively, what that means is that, I mean, what you're saying is that the sales at the end of Q4 were impacted, which sort of flows through to Q1. Then there will be an impact in the end of Q1, which will flow through to Q2. On a go-forward basis, I mean, this INR 170 crore, essentially, you can go back to whatever run rate you were pre all of this on a revenue basis. Is that right? Yes. You are absolutely right, sir. INR 170 crores plus means exact number is close to INR 173 crores is what we have not recognized as revenue, which is going to flow into this quarter. This is going to be a continued effect, which now has been reset. There is not going to be any more new reset going forward in this revenue recognition. Understood. The second question that I had was, again, I think someone asked you before on margin. Given the number of moving parts that have happened through the course of this year, I mean, what is the right base level of margin to start thinking about? I mean, if I look at your restated number for March 2024, March 2024 restated number was you were at 20.9% EBITDA margin. I mean, is that roughly ballpark the right kind of base benchmark to use going forward or you think that? Sir, I would. Margin is higher and etc., but what is the, I mean, I'm just trying to understand what is the base number to start with given the number of moving parts that have been recognized? Yes. I think the five quarters number are not the right judgment. Basically, having inventory write-offs during this quarter, that's not the right judgment in terms of getting into the assumption of what margins we are at or what we can be. Sir, as stated in my earlier answer, we are still intact with our aspirational margins of 24-25% going into FY2028. With the kind of new capacities of heavy forgings, aluminum forgings, cold forgings, whatever we have installed and is in progression, I would not be able to comment on quarter on quarter basis or next quarter. Overall, in terms of yearly basis, we still believe, and we are of the firm view that we will be able to maintain our margin, and we will be able to build on that going forward. When you say maintain your margin, what is the, I mean, is it the FY24 number? Is the, when you say maintain, is FY24 the base in your mind, or is FY23 the base? What is the base? I mean, when you say maintain margin, is FY24 level? Sir, base in my mind is FY24, but we have to still build on that case. I think that's the base which we are working with. Got it. Understood. One more last question for me is just your CapEx was quite elevated in FY 2025. You said, I think to someone else's question, that you're coming to the end of the CapEx cycle. You said largely will be done by September. For FY 2026, how much CapEx do you expect for the full year, FY 2026, FY 2027? For the full year, total full year, including maintenance, INR 100-150 crore is going to be the CapEx for whatever is in the WIP that is going to get completed before end of September. All these capacities are going to be in place, and we are going to be up and running. Rest all is going to be INR 100 or 150 crore, whatever is going to be, basically on account of maintenance or line balancing, no additional CapEx, at least for next one and a half years. Until FY 2027, we do not see any major CapEx coming in. Got it. So INR 150 crore you're saying is because of maintenance, at least INR 100-150 crore of maintenance. How much is the balance, whatever is due in FY 2026 from your gross CapEx that you've done in the last whatever two? I'm just trying to arrive at what is the total CapEx for FY 2026 if you see through? That is INR 100-150 crore. Sir, pending, I think everything is showing in WIP. To finish that off, maybe INR 50-60 crore or more required. The rest is INR 100 crore. Means total in totality, what I am speaking is close to INR 100-150 crore is going to be the total extra money spent above the WIP, which is showing already in the balance sheet. Okay. So basically, it is INR 150 crore that include maintenance CapEx plus whatever is pending to finish off the WIP project, essentially. Yes. Okay. The corresponding number in FY25 was almost INR 976 crore or something. From INR 976 crore, it is going to INR 150 crore. Yes, sir. Got it. Okay. Sir, major of the cash flow, to answer your question, sir, from warrants, tax refunds, and free cash flow, which is generated post interest payment in the coming year. Because this year also, we presume we should be tax-free based on our ACIL merger. All this money mostly will be either utilized, part will be utilized for working capital, and balance will be utilized for repaying the debt. Understood. Thank you. Thanks. Thank you. The next question comes from the line of Rajit Aggarwal from Nilgiri Investment Managers Private Limited. Please go ahead. Good morning, sir. I really appreciate the follow-up comments and the capital investment that the management has made. Forgive me, but unless and until I understand what actually happened, it's very difficult to believe that it is going to be back to where it was earlier. Now, the question really is, I mean, I'm sure a company like you would have SAP. You would have an internal auditor. You have bankers, the best of the bankers, who conduct annual inventory audit. How did this lapse? It didn't happen over one quarter or over one year. It happened over more than one year. I don't even know if it went beyond two years. If there is something specific that you can share how this happened, and it's not even a small amount, it will really help me to understand that going forward, things cannot and will not be repeated. I think to answer your question, yes, we have SAP. We have internal audits. I don't think banks conduct any audit in the plant in terms of the inventories are concerned. Yes, as I answered to your earlier question of one of the investor fraternity, that with the growth, we don't deny that there have been lapses. We don't deny that we are at fault. We take full responsibility of the fault which has happened. There is no denying of the fact that there have been lapses and there have been controls which have been missing. With the kind of growth we have had over the last five years, yes, we have not built a robust system to ensure that this growth also takes care of the systematic issue which should ensure that no such things occur. We are extremely unhappy ourselves. Like you are, we are extremely sorry for what has happened. The reasons for the same are not intentional. It is not purposeful. It is basically lapses which are on ignorance, lapses which have happened. Right now, I can assure you the kind of controls we are putting in, the kind of systematic controls in terms of manual removal of manual feeding in the system, removing the manual intervention in the system, putting the system on the auto mode, directly linked to the production equipment, is the way forward which we are working on. I think in the next three months' time, by end of September, most of our systems will be auto-fed rather than doing manual feeding as concerned. I can assure you that this kind or any such kind of incident will never come in the future. Right, sir. Thank you again for the reassuring of your commitment. I have a few quick questions if you do not mind. I mean, just bear with me, please. Has any bank come to you saying they would like to withdraw their limits? Or it is there? No, no such bank. No such banks have come. As well as if you see, when banks are concerned with the money, promoters are bringing in upfront money into the system. To the tune of that, banks are reassured that promoters stand by their commitment and the money is coming into the system. Also, I would like to reiterate one thing that you will be able to see when the fact-finding report comes. It is an error. It is no leakage of money from the system. I would like to reiterate that there is no theft, there is no leakage, there is no manipulation, or there is no leak, nothing wherein money has flown out of the system. It is an error which has occurred. Still, as a moral responsibility, as a promoter of the company, I took full moral responsibility of the same and have funded the amount. Banks are concerned with the money in the system, and the money is coming back into the system in a manner which is non-dilutive for the entire investor community. Right, sir. I think that is very well appreciated. Last one. Do you have any obsolete inventory or rejected WIP or any sort of inventory which can't be put to use on your books right now? Can you repeat the question, please? Do you have any obsolete or rejected inventory? We always have a policy for providing for the obsolete inventory or unusable inventory. We make it a discrepancy and there is no such inventory left in the system. That is a continuous practice we always follow. The company's policy also is to provide for the slow-moving inventory. One more thing, sir, I would like to reiterate. One more thing to add to your question. I would like to reiterate, sir, as answered also earlier. All provisions, maybe anything related, single piece also, has already been provided. There I would like to stress that there is not going to be a single piece provision, whether obsolete, whether lost, any such inventory issue has been addressed while taking. We have not tried even to save a single penny out of it. Everything what was required has been provided. Right, sir. Thank you. Much appreciated, sir. Thank you. We take the next question from the line of Raghunandhan from Nuvama Wealth Management Limited. Please go ahead. Thank you, sir, for the opportunity. We appreciate management commitment on investment of INR 205 crore through warrants. A few housekeeping questions to Lalit sir. Sir, for FY 2025, can you share within the revenue mix, how would be auto, non-auto, and generally you should give some guidance about within non-auto, railway, mining, oil and gas, others? If you have that numbers handy, please do share. Raghu, I will just say auto, non-auto is maintained at 78%, 22% right now. Okay? I will share separately with the mix of the because I am not able to work out the positive time on the other revenue. It is more or less on the trend what we have in the last quarter on the other segment. There is no significant change. Got it, sir. For full year FY 2025, if you can also share the revenue for Multi-Take, JMP, and ACIL? ACIL revenue is already merged in the RKFL result as ACIL has been merged. The revenue of ACIL, RKFL includes the revenue of ACIL on the bout of Multi-Take and CMC combined together for the full year. I think a lot of allegations happened at console level. In isolation, if you look at JMP was about INR 140 crore and Multi-Take was about INR 360 crore or more. Got it, sir. What would be the margin, sir, for Multi-Take? Overall margin for the full year for the Multi-Take was more than 15%. For JMP, we have a very nominal margin. From this quarter onwards, you see JMP is having its full potential as JMP is getting ramped up quite significantly. You can see a significant margin contribution from JMP in FY2026. Got it, sir. I want to just add on to Lalit's answer. In JMP Auto, now it was an NCLT company. It has taken us over more than a year to get back into shape. Also, because the company was closed, all the customers had shifted back their business to some other suppliers. Now getting back all those customers, we have been able to get one of the biggest oil and gas customers from North America back in RKCSL. Samples have already gone there. We expect from next quarter onwards, significant sales to come in oil and gas directly from JMP Auto, as well as off-highway business, POs, purchase orders, samples, and everything is almost under completion. We will see significant revenue coming from off-highway sector, also from JMP Auto, which is now RKCSL, from next quarter onwards. Thank you for that, sir. Congrats on the oil and gas order. Sir, lastly, within exports for FY25, 41% of revenue is export. Broadly, if you can break it up to North America, Europe, and others? Out of the entire 41%, we will attribute 26% to North America, about 30% to Europe, and 2% to others. Got it, sir. Thank you so much, sir. That's all from my side. Wishing you all the best. Thank you. The next question comes from the line of Mipin Soni from GPC Holdings. Please go ahead. Yeah, hello. Thanks for the opportunity. Sir, just one clarification I needed. Of course, as we said, it was an error, whatever happened because of the system ramp-up being slower than the growth. The error was in cost calculation. For example, there is a cost team which will do the cost analysis of what is the raw material and X, Y, Z, and then that is passed to the revenue team. The revenue is recognizing it, and accordingly, the inventory gets adjusted. Because what is happening is that there was a revenue which was recognized, but against which the inventory was not there, or over-recognition of revenue happened. What exactly, I mean, I am still not able to understand what is the error. I understand it is an error, but what is an error? No, Mipin, sir. Yeah. It would be better to reply to your question. There is no revenue recognition question in place. This inventory error has nothing to do with the revenue recognition. All the company recognized whatever moves out of the factory and moves to reach to the customer's bank. Correct. That has been billed and paid by the customer. There is no ambiguity in that. Coming to, we have always argued this was an error in recording of production and error in recording of rejections of inventory, which has made book stock of inventory higher than the physical stock, which has been corrupted. Basically, just to understand, so basically what you're saying is that the system over-recorded the inventory? Yeah. In a way, the system recorded more inventory and more production than more inventory. Let's say if we record more production, then technically the cash should be there in the system. Basically, if there's production revenue recognizing, then you have the raw material. If you have the raw material. There is no cash question comes here because if you have produced only 100, but recorded 102, so it's only notional. No, but let's say your raw material is better. Raw material converting. Raw material consumption, account of its accounting then. Yeah, sir. Please understand what I'm saying, sir. You have bought a basic raw material steel. Okay? You know there is X amount of steel which you bought. And against that, when you convert, there is X amount of scrap and X amount of finished products which you have finally made. Okay? For the steel which you have bought, you have paid cash. Okay? Now, if the output of the production which we say that the inventory was produced more, it will not tally because you have not bought so much amount of metal. And the cash has also not gone out of the system because since you have not bought the metal, you have not paid for the so excess inventory got created because so the analysis of input-output ratio went for a toss. Yeah. You are directly correct. Certainly, there was a lack of the analysis part on this also. Basically, when. Basically, I think to answer your question, this first issue came to light only because input-output ratio went for a toss. That is the reason the issue was highlighted in the system. When we started digging deep, that is the time we realized that this mess has come into the system. Basically, if input-output ratio would not have changed or input-output ratio would not have significantly impacted, there would not have been an alarm raised internally in the system that this issue is prevalent. You are absolutely right. What you're saying is that input-output. Is that input-output? Hello? Yes. What you're saying is the sales were happening at its own pace. Whatever we were ordering was happening. Order was coming, we were making. You were saying that the production was also happening at the same time that you were buying for the order which you received, you would buy the metal, you would convert it into finished goods that would be scrap. Then there was over-reporting of the products made. Over-reporting. No, no. There are a couple of things, I think. When you will see the final exclusive summary of the fact-finding report, it will be more clear to you. To be safe on the side, while not commenting on what comes out of it, there are a couple of things that it was over-reporting of the production as well as under-reporting of the rejections. Both combined together have accumulated into this. As rightly said, this is not an error which has happened over a quarter or over a year. It is an error which has happened over a couple of years. In order to have a final number to it, we did a full physical inventory of every single piece in the system and came to conclusion and have provided this in last five quarters. Thank you. We take the next question from the line of Bharat Shah from ASK Investment Managers Limited. Please go ahead. Yeah. Hi, Naresh and Lalit. While the final report would emerge, as you have mentioned, in some time. I hope it confirms everything that has been edited just now. I don't have a question today. I just wanted to make an observation. Every failure or every challenge is a source of opportunity. A failure is a source of opportunity to make things far more robust and prevent brittleness to come in. I hope this has been a significant and a rude kind of a shock, but it doesn't have to remain that way. If we convert this challenge into a big opportunity by making our systems tight, by making things more efficient, and in fact, given that this opportunity has created confusion about margins, which you talked about at length, I think it gives us a fresh opportunity to look at our cost structure, our pricing, our efficiency, so that as soon as possible, we get back to the kind of profitability and capital efficiency that we believe would come forth with the pricing scale and the sophistication of the kind of products that we are offering. In short, while indeed this has been a rude kind of very impolite kind of interruption which has occurred, it does not have to remain that way if we take the right and constructive lessons out of it. Thank you, Bharat. Being a veteran from the industry, your comments or your observations are absolutely right. We respectfully take these comments in the right earnest. I personally promise the overall fraternity of the investors who have backed RKFL that this is one such incident, and a rude incident, and a bad incident, which has been aggressively looked at by us. We have spent sleepless nights over the last two months. For the first time ever, we have had eight days practical closure of our plants for complete audit of every single thing, every physical count of everything. I can assure the investor community that this is never ever going to happen ever. We are putting in absolutely robust systems and integration before the end of September to ensure that this incident is a past and a forgotten incident and will never ever reoccur in times to come. Also, I would like to assure you personally that we are working absolutely diligently because we are responsible to our people in RKFL, our investors, our customers. Taking all this into account, we are now going to pace our growth with the system growth also. We are just not going to grow in terms of capacity. We are going to grow in terms of overall building the robust system to ensure that system creates profit rather than all these things. I deeply appreciate. I also appreciate your statement earlier that there has been no cash leakage, and there has been no theft or manipulation which has occurred. Therefore, despite no cash leakage from the system, if you have chosen to put as promoter, the funds back into the money by restoring the network because implicit assumption is that the investors believe the profits which were there for these two years, even if there was no cash erosion, these profits at least were presumptively there. Therefore, now that they are not there, you have chosen to put it back into the system. I think it is an act of definitely good behavior. I appreciate, and I deeply appreciate. Thank you very much, sir. Thank you, sir. Thank you. Ladies and gentlemen, we take that as the last question and conclude the question and answer session. I now hand the conference over to the management for their closing comments. Thank you. I would like to thank all the participants for taking your time to join our earnings call. I hope we have been able to answer and address your queries. For any further information, kindly get in touch with us or with CBR India. On behalf of Ramkrishna Forgings Limited, we wish you all a very wonderful week ahead, and we look forward to interacting with you again in the next quarter. Thank you very much for taking out your time again. Thank you. Thank you. On behalf of Nuvama Wealth Management Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line.