Bansal Wire Industries (NSE:BANSALWIRE) Q2 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to the Q2 and H1 FY 'twenty seven Conference Call of Bansal Wire Industries Limited. From the management, we have Mr. Pranab Bansal, MD and CEO Mr. Ghansham Gujarati, CFO and Mr. Manu Jain, Head Investor Relations, to take the discussion forward. We also have an Investor Relations team from AddFactors. As a reminder, all participant lines will be in a listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded.

0:48 Before we begin, I would like to mention that some of the statements made in today's discussion may be forward looking in nature and may involve risks and uncertainties. Please note the disclaimer mentioning these risks and uncertainties are on the disclaimer slide of the Investor Relations presentation that has been shared earlier. I now hand the conference over to Mr. Pranav Bansal for the opening remarks. Thank you, and over to you, sir. Yes. Thank you. Good morning, everyone. Thank you for joining us for the Bansal Wire Industries Q2 and H1 twenty twenty seven earnings call. I hope you had an opportunity to go through our financial results and investor presentations. Joining me today is our CFO, Mr. Bansal Wire Industries Limited.

1:34 I would also like to welcome Mr. Manu Jain, who has joined us recently as Head of Investor Relations and Strategy. I am extremely pleased to share that this has been a landmark quarter for Bansal Wire Industries. We have achieved our highest ever quarterly revenue, EBITDA and profit after tax. More importantly, our EBITDA per ton has also reached its highest ever level. This improvement has been supported by a combination of factors, including better operational efficiencies, improved cost management and a favorable product mix and of course, of economies of scale that are gradually coming in and are visible as our expanded Dadi facility ramps up. Another important highlight has been our cash flow performance.

2:22 Through our continued focus on working capital optimization and disciplined financial management, we have generated strong operating cash flow, coming close to achieving our full year guidance within the first six months itself. And perhaps one of the most satisfying development has been our improvement in our return on capital employed. We have consistently maintained that our near term objective is to achieve 25 ROCE. Based on our second quarter performance alone, on an annualized basis, our ROCE stood at approximately 22%, bringing us significantly closer to that objective. What makes these achievements even more meaningful is that they came immediately after a challenging first quarter. We were able to overcome the operational challenges faced during the first quarter, including industrial gas disruptions and higher input costs.

3:13 This demonstrates our ability to recover quickly and move closer to our strategic targets. I believe this quarter represents an important step in the evolution of Bansal Wire Industries. From a business focus primarily on capital and volume growth to one increasingly focused on higher profitability, stronger cash generation and superior return on capital. Coming to our operations, we continue to see healthy demand across the various industries we serve. One of our biggest strengths of Bansal Wire has been our diverse presence across sectors such as automotive, infra, agriculture, power and transmission and general engineering. We remain positive about the medium to long term outlook for the steel wire industry in India, supported by increasing industry activity, infrastructure development and growing demand for specialized wire products.

4:05 Our strategy is to strengthen our market position by expanding our product portfolio, improving our manufacturing capability and continuously developing new applications to capture the growth opportunities across the Indian economy. Our specialty wire business continues to progress well and remains an important part of our growth strategy. The OHT line is progressing as planned, and our steel cord line is also moving forward very well. Customer approvals and related processes are progressing within the expected time lines. Another area where we are making encouraging progress is our B2C business. Historically, we have largely been focused on industrial customers. Now we are expanding our reach into farming, fencing, poultry and other retail oriented applications.

4:54 We have introduced several products, including grape trellis wires, poultry cages wires and specialized farming and fencing products. Our objective is to build a stronger distribution network, reach new customer segments and establish Bansal Wire as a recognized brand beyond our traditional industrial markets. Moving on the capacity front. Our plans remain on track. We will add 60,000 tonnes of capacity at Dhari as brownfield expansion. Further, we are also progressing with our planned greenfield facility in Southern Gujarat with approximately 90,000 tonnes. Tonnes. This facility will strengthen our presence in Western India and bring us closer to the customers and improve supply chain efficiencies.

5:41 With these expansions, we expect our overall manufacturing capacity will increase from 6.8 lakh tonnes and reach approximately 8.3 lakh tonnes by the end of next year. Our indicative annual capital expenditure remains in the range of INR 200 crores to INR $2.25 crores. However, I would like to emphasize that our approach to expansion remains disciplined. Our objective is not simply to add capacity, but to ensure that new investments contribute positively to profitability, cash generation and return on capital. As communicated earlier, we are targeting cumulative operating cash flow generation of approximately INR 800 crores over FY 'twenty seven and 'twenty eight combined. We remain committed to funding a significant portion of our future investments through internal approvals.

6:30 We believe this approach will allow us to scale the business while continuing to strengthen our financial position. As we enter the second half of FY 'twenty seven, we remain confident about the opportunities ahead. Our priorities are clear to strengthen our leadership in the steel wire industry, increase the contribution from specialty wire products and expand our B2C business and execute our capacity expansions efficiently. At the same time, we will continue to focus on improving operational efficiencies, generating healthy cash flows and working towards our near term ROCE target of 25%. The performance of this quarter gives us confidence that the strategic initiatives we have undertaken are beginning to deliver tangible results.

7:17 For us, the most encouraging aspect of this quarter is not just that we have achieved record financial numbers, but that we are seeing improvement across all parameters that matter for sustainable growth, profitability per tonne, cash generation and capital efficiency. Our ambition is to build Bansal Wire into a larger, more profitable and capital efficient organization, creating sustainable value for all our stakeholders. Let me take you through the financial summary for the quarter and first half of 'twenty seven.

8:02 Our revenue for the quarter stood at INR $130.08 crores, up 24% year on year. EBITDA for the quarter came into rate INR 105 crore, up 29% year on year, and net profit for the quarter stood at INR 53 crore, up 38% year on year. We reported higher EBITDA higher total EBITDA and EBITDA per ton for the first half of FY 'twenty seven. Revenues today to be INR 2,476 crore EBITDA INR 8.162 crore and net profit INR 8.73 crore. As Pranosur already mentioned, our sales volume for the quarter is INR INR 229,000 metric tons compared to INR 114,609 metric ton in quarter two of FY 'twenty six.

9:02 Operations run at normal level in the quarter following the industrial gas disruption in quarter one. The demand across our end market was healthy. On the cash flow side, we generated operational cash flow of INR $215.18 crores during the quarter and INR $3.39 crores in the first half, reflecting our continuous focus on donating healthy cash flow from the operation and improving the working capital cycle. This concludes my remarks. We can now open the floor for the questions. Thank you. Thank you, sir. We will now begin with a question and answer session.

10:05 Ladies and gentlemen, we will wait for the moment while the question queue is assembled. We'll take the first question from the line of Parthiv Johnson from Anandjati. Sir, before I begin my question, I just want to give a thumbs up to the team who actually prepared the presentation. It's actually one of the best presentations since the institution, genuinely. So my first question is actually pertaining to your all your value added product portfolio, IHT, OHT and your steel type of ore, right? I believe you have already given an product trial runs as far as steel type of ore is concerned. So number one, when is that expectation that, okay, that will basically translate to some tangible top line and EBITDA?

11:14 Number one. Number two, the 15,000 capacity once it happens for ISK and OHP, right? What is the kind of top line and EBITDA growth are we expecting? And is this possibility that this 15,000 say, INR 8,000 and, say, INR 29,000 also can grow from here on as well? So that's my first question. So on specialized products, we have two streams that we are working on. One is steel tire cord. Steel tire cord, we got our first trial order last quarter, and we are expecting that we will receive another trial order within the next ten, fifteen days, hopefully. So yes, that is that. I think that is from other customers. So we'll have at least two customers who have given us trial orders. Other customers also, second stages of approvals have already started, and we are expecting some good results in the next one or two quarters. Hopefully, if everything goes well, we might be able to see some commercialization within this year itself.

12:14 So that is for steel record. Other steel that we are working on is on IHT and OHTY. So IHTY has been performing quite well. We have reached a positive EBITDA last quarter from IHTYRE. And we are now also moving fast on OHT. So by hopefully, within this year, we will be able to increase our total capacity of IHT, OHT to about 15,000 tonnes. And yes, so capacity utilization there is already good, and I am expecting that we will see some positive contribution within this quarter from IHT and Okay. Okay, sir. Any possibility to give some quantifiable number as far as EBITDA per ton is concerned for IHT and OHT? Because blended business were about INR 8,150 which is, I think, they're even surpassed at 25 level. So is it possible to quantify that number? And what this can quantify, and then we can build that this particular number going towards a higher mark?

13:18 Yes. So the whole of specialty wide segment, I think on an average, for IHT, OHT, we can take about 15,000, 20,000 a tonne kind of EBITDA number, which we already see us generating. Okay, sir. Sir, my second question is pertaining to your volumes, right? Because I think you have guided for a 20% volume growth, which basically translates to almost about 550,000 tonnes an annualized run rate for 'twenty seven. Now considering that you have done about 240,000 in the first half, how confident are you of because that's like only about 43, so you still have about 57% of the room to be filled in at a higher base also. So how confident are you considering in all quarters, we have a lot of festive holidays and all coming in. So how confident are you, sir?

14:12 So sir, our infrastructure and our team is geared up to deliver 20% volume growth consistently, and that is still our target. And even after not delivering the best in the first quarter, I think we are still confident of achieving 20%, 20% kind of growth. There have been some issues. For example, right now, there is a shortage. There is a acute shortage in our raw materials. So these are some concerns that we are struggling with. But yes, I think in the medium term, I don't think that should have our production overall. So we would still target that 20% growth. Possible to give some clarification on the raw material shortages? So in the last one point five, two months, a lot of our raw material suppliers have diverted their production from wire rods to TMT, creating a shortage in wire rod. And there have also been some breakdowns in raw material at our suppliers' end, creating some shortages in the whole industry.

15:17 And although until September, we were able to manage this month, we have taken some hit on terms of the non availability of raw material, but that's I think that's a small duration, and I think we are back again already. So yes, these kind of small blips here and there we are facing right now. But sir, I believe you carry two months of inventory, right, on your books, one point five to two months? Yes. We carry about one months point of inventory. So therefore, September, we did not take a lot of it, whereas the whole industry suffered in September. But in October, in some of our plants, in some of our sections, we were lacking in our production, which is now up and running again.

16:02 So these are small things, again, but we still remain confident on 20% volume growth. Okay. And sir, last question. On your opening remarks, you mentioned INR 800 crores as CFO over two years or 700 crores? INR 800 crores for this year and next year combined, but we've already done about INR $3.50 crores in the first half of this year. I think we will be able to surpass this very well. We will take the next question from the line of Vinit Shah from Dalaland Please go ahead. Mr. Vinit, please proceed with the question.

16:48 Hello. Thank you for taking my question and congratulations on a great set of numbers. So my first question was related to the B2C segment. The management please clarify how much was the revenue contribution from the B2C segment from this quarter? We had already clarified that Q2 and Q3 are seasonally softer quarters. But just on a sequential basis, what has been the performance? So we did about 10 to 12% of our total volumes in B2C even in the last quarter, which is one of the lightest quarter there is for B2C. But we were still able to maintain our overall total volume even after an increase of about 15%, 20% in our total volume, we were able to push that in B2C last quarter.

17:40 Okay. And I just wanted to clarify like a follow-up to the previous part as well. So the 20% growth of volumes that we are anticipating, that is only for H2 of FY 'twenty seven or the 20% guidance is for the annual volumes for the full FY 'twenty seven? No, I would say that is only for H2 of FY 'twenty seven. Whatever we lost in Q1, we cannot bring back. But at least for Q3 and Q4, our general volume should be higher by 20%. And as you mentioned, so it is more of a supply constrained right now. The demand looks really positive for us. So guidance will not be revised due to the demand issue, but if raw material price raw material availability issue pertains, then we might take hit in our volume growth, correct?

18:32 Yes, that is true. But I mean, through these years, we faced such issues before. This is and this is temporary. This I do not see as a long term glitch in our system. So even if we lose ten days of sales in a month in one particular month, we will make up for this in the next month. So I don't think that is also going to hamper our total volumes so much. And my second question was related to the EBITDA for sustainability. So like we had given a range of INR 7,000 to INR 8,000 total EBITDA margin, and we have surpassed even the upper limit of the margin. But do we think this is a sustainable margin going forward until the higher product mix fixes?

19:25 Sir, this EBITDA that we've received that we've gotten this quarter, I think this is a mix of a lot of factors. One is a sustainable factor that is economies of scale. We are finally seeing the benefits of the other coming in. As the utilization ramps up, those economies of scale benefits are coming in. So those are some things that are sustainable and should only increase in the future. Apart from that, this has also come from a onetime stock inventory gain because the prices of steel have shot up. So some impact of that is also there in this. And third, we entered this quarter only with a higher margin. From Q1 first half of Q1, we reduced our margin.

20:10 But the second half of Q1 itself, we had these kind of margins. So yes, I mean, if the demand that we see in our industry sustain, I think this margin should be sustainable. But otherwise, also, I mean INR $506,100 a tonne here and there can always go. So we yes, so that is this is that. Sir, could you just quantify with INR 7,500 good number to assume going forward? Sir, our thought process is that we should maintain our margins at about 7%, 7.5%. That has been our goal for this year. You. Will take the next question from the line of Aditya Bhantia from Investec.

21:00 Please go ahead. Hi. Good morning, Manav. My first question is on EBITDA per ton. We had almost 8,000 this quarter. What could be the inventory valuation gain in this quarter? And if we kind of exclude that, then what is the number that we arrive at? Is it at the upper end of INR 700 INR 100 range that you're speaking about? Sir, if I was to I would say inventory gain would be maybe INR 200 crores a tonne in this. So not more than that. Rest of it has come from just better margins in the industry or our Dadi facility, honestly, is also contributing a lot. In this, we have seen those positive trends in all kind of costs in the Adai.

21:54 So as Adai ramps up, I think that is something that is sustainable. So in that context, when you speaking about 7,005 per tonne, do you think you're being fairly conservative and the numbers are likely to be higher than that, especially with slightly kind of improving mix? Sir, yes, I mean, we've delivered 8,000 of EBITDA this quarter. In this onetime stock, inventory gain is only INR 200 a tonne. So we still delivered INR 7,800, 7,900 here. So if everything goes as it is, I think we should continue delivering this. But our own estimates or our own strategy has been at INR 707.5 This is just something that we are getting.

22:42 We've honestly not worked very hard to get this. Sure, sure. Understood. And what has kind of contributed to the 7,000 odd number you've been speaking about for a few quarters, but what has contributed to 7,000 moving more towards 7,800 odd bugs in the last quarter? You've also mentioned about mix change. What exactly is the mix change? Is it only about B2C? Or is it also that we had higher proportion of high carbon wire? So actually, in last quarter, although our estimates or our strategy is that low carbon should be about 55%, 60% of our total volumes.

23:29 Last quarter, our low carbon was about 55%, so lower end of 55%, 60% range. Because of that, at the lower end, our blended EBITDA is better. So a better product mix was definitely one contribution. And within low carbon, our B2C segment has increased drastically. So that is also contributing well in EBITDA because in the B2C segment, we see at least 50% higher EBITDA as compared to our general B2B segment. So that is also a major contribution. So I would say a healthier product mix coupled with Daddari ramping up. I mean Daddari the second facility in India after the Adri would be at least onefive of its size. So we are definitely enjoying the economies of scale there. I mean, if you talk about electricity, if you talk about gas, if you talk about anything, labor cost, everything, the other is much superior, much better than any other facility that even we have.

24:32 Sure. My second question is around the volume outlook. So if we consider last year, fourth quarter was a pretty weak quarter with some challenges around gas supply, etcetera, as well. So on that basis, the 20% kind of a growth outlook for second half looks to be slightly muted. Again, want to understand that is it that you're being a little conservative? Or we should be at least hitting, let's say, 145,000,150,000 kind of a run rate for the next two quarters? So one thing is that if I'm committing to you something, I should have the ability to do a little better. I will not want to commit to you some number and then at the end of the next quarter or later come to you that, okay, these were the reasons. So that is not something that we would so we would rather be a little conservative than risk not delivering on our guidance.

25:36 That is definitely the case. But still, I would say 20% is a reasonable number. I'm not talking about 20% increase from first quarter from H1. I'm talking about the year on year increase. So second half of last year as compared to this second half of this year, we would still be able to see 20% volume growth. And I mean, we have not entered the second half with a very good experience. So in the first month of the second half, we are experiencing raw material shortages. So there are some negative factors at play from the initial time. But we'll try to rectify this, and we'll try to overcome this in the future. Perfect. Perfect. And the last bit around steel cord. You mentioned that we may see some commercialization sometime during this year as well. So if you could just kind of guide us on how things may play out? How is it that you're seeing it today?

26:37 How the ramp up around steel ports is likely to play out over the next few years? Sure. So sir, we one of our main customers that we're working with, we've already we had already received their trial order, which is already gone, and we are expecting a second round from them very soon, hopefully, within a month or maximum. So that customer is progressing well. We have already started making supplies for another customer, whom we are awaiting a formal PO from, which should be here within the next ten, fifteen hopefully. But we've already made product that their team has already visited us, given us an approval of supplies. So that is that. So that is an increased development that we were able to do last quarter.

27:23 We are we our samples have also been approved with the third customer, whom the with which the trial process is not very long. So because of that, I feel confident that out of these three developments, at least one of them should be able to click within the next six months, if not sooner. And as commercial production starts, is it that the particular customers start procuring a fairly large chunk of their requirements straight away? Or is it a very slow ramp up? Sir, I would say that the first two quarters would be a little slow because that depends on if we are only supplying to one customer or two customers. But for one customer also, I think the first two quarters would be a little slow. But after that, we should see a good ramp up. And also, we don't want to depend entirely on one customer. So even we wouldn't want to supply more than 20%, 25% of our total sales to one customer because there need to be room for me to do trials and supplies to other customers for the larger project that we want.

28:46 We have the next question from the line of Vishaka Jain from Veritas. Congrats on good set of numbers. So my question was regarding to the split sorry, regarding the split that has happened, can the rationale can I know the rationale if you're okay with? Sure, Amit. The thought process behind the split was to increase our family. So but just to increase our number of shareowners. I mean that was the main thought process. Liquidity, we thought that if it is at a better price, we would be able to get more and more shareholders into this. So that was the only thought process.

29:40 Okay. Even from the retail perspective because, I mean, I believe this price is not that high for the retail also? Yes. So that was yes, that's the main thing, I mean, to get more retail shareholders because our total holding, I mean, total public or retail holding is very less in our stock. We saw room of improvement there. We have the next question from the line of Bhojan Shah from Modical Ventures. My first question pertains to the system cost. So basically, we have on course of receiving the approvals of the customers, and we are also planning to supply and also start the trial production for the third customer.

30:32 So sir, I just wanted to know your view in terms of capacity addition. So we have already done a 20,000 metric ton of capacity addition as a pilot project. Do we see as and when we move ahead and as a demand from hand touch on, see an incremental demand, which we plan to two lakh tonnes, which should come by FY 'twenty eight or 'twenty nine with the visibility of getting strong orders? So sir, our goal is definitely two lakh tonnes. There is no change in that goal. We have been a little delayed because of the fire incident that took place.

31:17 So that did hamper our growth in this product for about six to eight months. But now we are back, and we have seen very positive response from all our customers. As and when we get approvals, I think in the last two years, we prepared our company to execute a bigger project for Steelcorp. Right now, if you see even last quarter's result, in the first six months itself, we have reduced our debt by 40%. So our total debt today stands at about INR 300 crores with about 0.2 debt to equity. So I think we are very well placed in terms of taking a bigger CapEx whenever required for steel tire cord. So as and when we get customer approvals, we would definitely be going in for that. And there is a good demand in the market. We are still sitting at 2.5 lakh to three lakh tonnes of demand in the country, majority of this being met by imports.

32:20 So we definitely see a good opportunity here. And that is why we've been very focused on this product. As and when we get approval, we will definitely start immediately after that with our CapEx. We might have some good numbers or some good news for you in the coming two quarters. Yes. Got it, sir. But if you look at one of the competitors, which is e card is also expanding. So as industry is growing at 10% only, so are we confident enough to place our two lakh tonnes of capacity within the market because the total market size will be at that point of time would be three, 3.5.

33:07 Sir, we see that the market is growing at a very good pace because in steel tire cord, we are getting, a, the tire industry growth and second, the radialization also that is happening because this is only a product that is used in radial tires and not in biased tires. And today, in the truck segment, especially, the radialization in India stands at about 60%. So there is a good room there. If you see developed markets, are almost 100% radial. So there is a good room of growth the tire industry, and this is what we witnessed in the last two, three years also. That is one. Second, yes, there is domestic competition here, but that domestic competition is also not expanding as well as the market is. I mean, in the last five years or six years, if you see, they've expanded by maybe 20%, 30% overall.

33:56 So and that's a big company, a multinational company, which has focused on a lot of different segments and a lot of different countries. So India is just one of that. Whereas for us, India is everything. So we will be a little more aggressive here. And of course, there being no Indian company in the country today also gives us a good room for growth. Got it, sir. Got it. Sir, coming to the second question, which is on LRPC, and we have already started commissioned LRPC for fires in B Roy. Now just to get a sense on EBITDA per ton, could we assume the EBITDA per ton for LRPC and Hawesville could be around INR 12,000 to INR 15,000 a range and Midway could be around INR 15,000 to 18,000?

34:50 Sir, LRPC, generally, it gets around INR 5,000 to 7,000 INR 8,000 a ton. But that also varies quite a lot. Right now, LRPC is not a good product for us because there is excess capacity in the country. So today, we are not making much money in LRPC. Beadwire, yes, I think generally, this is a good range to consider for Beadwire, 12,000 to INR 15,000 is I think good enough. For Hosewire, we are looking at a bigger number at a better number because this comes in with our steel diodes. So steel diodes and Hosewire, both we are looking at a similar number. Okay. Got it. Got it. So just to get a split, so ISG and OST, we have already a mix of both the buyers.

35:44 We have reached to INR 15,000, in which ISB would be INR 9,000 and OST will be INR 6,000. That's the correct split. And we are expanding that INR 9,000 to INR 15,000. Sir, we have today only installed IHT, that is at INR 9,000. We are in the process of installing OHT, which will be 6,000 tonnes, taking the 9,000 total to 15,000 within the next one or two quarters. So total IHT included IHT and OHT included, everything together will be at INR 15,000. Got it, sir. And just to sort of get on sense on the debt, right now also, how is the availability situation right now? Do we have any contractual agreements for the certain volume at a certain price or that the daily basis we have to partner because ultimately, we also take a one month forward booking, which helps which ultimately fix the prices. So just want to know on that side.

36:50 So, sir, gas, we have always had annual contracts with all our suppliers because we do not depend on cylinders. We have direct lines from the companies in our facilities. So consistency has always been maintained. In the last two quarters, yes, there has been a disruption. But today, in terms of availability, we do not see any challenge. There has not been a challenge for the last one quarter in availability, for sure. Price is definitely still increasing. Right now, it is almost 2.5x our regular price that was earlier in this situation. But it has increased gradually. So that has also been passed on to our customers. That hit we took in the first quarter of this year itself.

37:38 Got it. So basically, in Q3, Q4, we are in steady state assuming considering, obviously, no assumption in terms of inventory, we could do a of 7,000 to 8,000 type of EBITDA per tonne. Yes, sir. Think broad and next year, we can do more or less because as and when IHT and OST comes into play, then obviously, the same product will start ramping up hopefully. So that will inch up to EBITDA to much higher pace of, let's suppose, 8,000 to INR 10,000 kind of a range. Yes, sir. You are right. I think we are fairly confident of delivering INR 7,000 to 8,000 a tonne of EBITDA this year, provided there is no other massive major change in the geopolitical situation or elsewhere.

38:31 I think we are good to go here. In the long run, yes, we would definitely look at INR 8,000 to 10 INR 10,000. Thousand are higher than INR 10,000 kind of range once our specialty numbers also start coming in. So that is definitely going to be the long term much. Have the next question from the line of Saket Kapoor from Kapoor's Sir, firstly, pertaining to this sir, firstly, pertaining to the capital work in progress closing balance of INR177 crore, if you could just outline to us what is attributed to which of the product line and what is going to get capitalized in the second half of the year?

39:36 Sir, there are two things that we are working on right now. One is the 6,000 tonnes addition of OHT wire, which is to come in hopefully in the third quarter or I mean, if it stretches, maybe in the fourth quarter. And apart from that, we are also working on 60,000 tonnes of additional capacity in Badri. So in which most of the work has already been done, that is why you see the CWIP. I think in the next quarter or by the end of fourth quarter, I think all of this should be capitalized. And for the Dabu unit, what would be the key products that will attribute the volume addition will be? So sir, 60,000 tonne is going to come in from low carbon and high carbon wires.

40:25 And apart from that, 6,000 tonnes would come from OHT wires. So this is one side. And the second side is also the Sanan facility that we have started working on for the 90,000 tonnes of capacity of stainless steel as well as low carbon buyers. Already that we have spent already done CapEx for the Sanand facility. That is there in the closing versus CWIP balance? No, sir. Some part of this is there in the CWIP section. Majority of this is coming from Badri, not Sanand as of now. Sanand will you will see something coming from next quarter or the quarter after that. And sir, how much have you outlined for the project there, including the land investment?

41:13 What would be the total CapEx and what would be the effect turnover? Sir, we are looking at about INR 150 crores of CapEx there apart from land. Land, we've already taken about a year back. But from now, I think we are looking at INR 150 crores of CapEx there in stainless steel as well as low carbon wires. And the asset turnover and optimum level? So generally, I think our company maintains around four to 5x of asset turnover in general. So I think that should also be the case there. Yes, I think similar numbers, I think, you can take. In general, sir, our thought process of expansion is about 2 crores of CapEx every year. That will continue to be, which will come from our internal approvals.

42:05 Sir, secondly, if you could outline for us the capacity for both the steel cord and the bead wire segment, What have we outlined? And how much will be the ramp up how the ramp up profit would be? And second question is what will be the realization for the steel cord and your application your customers are in this capacity with the category, industry standard? Sure. So sir, in steel court, our total capacity is about 20,000 tonnes, which we will as and when required and when we get our approvals, we will take to two lakh tonnes. That's the end goal. And in Beadwire, our nameplate capacity is about 30,000 tonnes, although some balancing equipments are still to be placed there. So right now, we are running at about 10,000, 15,000 tonnes annual capacity in wire.

42:55 So yes, this is that. All of the both of these products go in the tire industry. Bead wire is used at the side of the tire, whereas steel cord is what makes the tire. So steel cord as a percentage is consumed more in compared to steel cord as compared to grade metal. What should be the realization for steel cotter? Do we find steel cot in application in the conveyor belt and other applications also? Or does it it is only attributable to the tire segment for us or as an industry as well? Sir, this is so this is what we are working on is steel tire cord, which is only for the tire industry.

43:41 And the conveyor belt application is basically more of a fine cord or a rope that you could say that goes in the conveyor cord industry, which is a very small application in general. But these are two very separate products. And sir, for the realization part, can you give an understanding how the steel core realization are for? The steel core average pricing should be about INR 130, INR 140 a kg as of now. Okay. And two small points. Firstly, about the NRPC margin profile. You also mentioned that margins are on the lower side. And we also see that one of the major players is either exiting or lowering the mix in the total profile.

44:31 So out of the total revenue mix, what is the contribution for the LRPC? And what is our thought process for the way ahead? Sir, LRPC right now, we are doing less than, I would say, it should be less than 1% of our total sales LRPC. And yes, but this is just a product that is good to have in our age. So the thought process behind this has been that, in general, our company tries to diversify as much as we can so that there are always some products that are doing very well, some products that are not doing well. And that is what makes us very consistent in our results. So LRPC is also just one of those products that we added.

45:21 Right now, it is not doing well, but there will be a time when we'll be able to make some good EBITDA in LRPC and LRPC will support our other segments. The good thing about us is that most of our investments are made by us. And our investment per ton is very less as compared to industry. So even at a lower EBITDA, we are still able to make decent return on our capital. And lastly, sir, in the presentation, if going ahead, we can put forward the revenue mix product wise also, that would give us further understanding. So as you mentioned about this 1% only contribution, so are these facilities fungible?

46:07 I mean, we have just mentioned that whenever the demand picks up, that will start contributing because having 1% in the portfolio, how does it make any difference? Just my just to get my understanding. Sir, we have 3,500 products. So there are products that are 0.1% of our total portfolio also, and those are still meaningful products for us. And that is how we've structured our organization in the last eighty five, ninety years. We do not depend on one single product for a big number, which is one of the main reasons why we've been very consistent in our numbers. Even if there are 10 products that are not doing well, there will always be 100 other products that will do well. So LRPC, even though it is a 1% in our business, it is still a meaningful we have in past, Right. And so just to confirm on the bead wire, as you mentioned that we have current capacity of 30,000.

47:17 So we commercialized our unit there and what is the current expected. And in terms of customers' impairment, have we got the major OEMs also registered? Our facility is in Delhi, in that facility itself? Or if you could just give some more color of the road map for North India. Plant for us is in North India. It is part of our Dadari facility. So we have a small campus for Bidwar there. And honestly, Bidwar is a product that we are not very that we have not really focused on in the last one, one point five years because we were facing challenge in ramping up our capacities.

48:05 So when we are facing those kind of challenges, we were focusing on our existing products rather than getting into newer applications. So right now, although in the last quarter, we've been able to ramp up our Dandari facility well. So in the future, maybe in the next one or two quarters or three quarters, we will start focusing on bead wire and sales there. In terms of approvals, I think right now, we are supplying to the cycle market and some non OEM tire customers. Right now, we have not started the approval process, but it is not a longer it is not as long as steel tire cost. This whenever we start, I think we will get some approvals in first six months or so. But honestly, we've just not been proven. If we eliminate the benefit of this onetime gain of inventory of 200, Is it correct for investors to extrapolate these numbers for the second half one of the as a base? Or since we have a bad quarter one because of an unforeseen reason, Does this EPS of India has a whole good for the remaining part of the year that is H2 also, we can go forward as a base or... For second half. Yes.

49:31 So as a company, sir, we try to our range is about INR 7,000, INR 7,500 per kg or INR $77,500 a ton is our EBITDA range. And this is what we are confident on delivering. We were able to do a better quarter. We will hope for similar results. But as far as my commitment goes, I think INR 707.5 is what you can consider for the first for the second half. What kind, sir, you mentioned about the volume growth, I mean, you reiterate once again, what is the volume growth expected for H2? 20%. On top of what H1 we have? 20% over H2 of last year. Year on year, 20% over H2 of H2 H2.

50:19 Thank you. Thank you. Sure, sir. Ladies Okay. Thank and gentlemen, that will be the last question. I now hand the conference to the management for the closing comments. So thank you, everyone, for joining us on our call. I hope we've answered all your questions. If there is still anything that's remaining, please get in touch with us, and we will try to get you all the answers as much as possible. Thank you. Thank you, members of the management.

51:06 On behalf of Bansal Wire Industries Limited, we conclude this conference. For any queries, you can connect with AdFactors IRD. With that, you may now disconnect your lines. Thank you very much.