Nupur Recyclers (NSE:NRL) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to Q1 FY 'twenty seven Post Results Earnings Call of Nupur Recyclers Limited hosted by Actors PR. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask Please note that this conference is being recorded. I now hand the conference over to Mr. Rishad Shah from AdFactors PR. Thank you, and over to you, Rishad. Thank you. A very good evening to everyone, and warm welcome to Q1 FY 'twenty seven earnings call of Nupur Recyclers Limited. From the management, we have with us Mr. Rajesh Gupta, Chairman and Managing Director.

0:50 Before we begin the earnings call, I would like to mention that some of the statements made during today's call may be forward looking in nature, and hence it may involve risks and uncertainties including those related to the financial future financials and operating performance of the company. Please bear with us if there is any call drops during the course of the conference call. We would ensure that the call is reconnected at the earliest. I now hand over the call to mister Rajesh Gupta, chairman and managing director, for his opening remarks. Thank you, and over to you, sir. Thank you, Risham. Good evening, everyone, and a very warm welcome to all our investors, analysts and shareholders joining us today for Nupur Recyclers Limited first earnings conference call as a listed company.

1:42 Our Q1 financial year 'twenty seven financial results and press release have already been uploaded on the stock exchanges and on our website, and I hope you have had a chance to go through them. Before I move to our business and financial performance, want to briefly address a question that may be on many of your minds given the current geopolitical environment globally. I would like to assure you that this has not had a material impact on our operations.

2:29 The reason, at simple, we do not depend on any single country of origin or our raw material. We source our scrap metal from multiple geographies and United States, Europe, Middle East, Far East Asia, and Australia, New Zealand, which give us the flexibility to reroute our sourcing. If any one region faces disruption, this diversified multi geography sourcing model has been and continues to be one of the core strength of our businesses. Let me now take a few minutes to explain our business in very simple terms, particularly for those of you who are getting to know about Nupur Recyclers for the first time.

3:30 We are in the business of recycling of nonferrous metal scrap. In simple words, instead of mining new metal from the ground, we import scrap metal, used or discarded metal scrap from development markets such as Europe, US, Middle East, Polystasia, Australia, New Zealand, and other more countries and convert it into usable, good quality metal that Indian manufacturers can use directly. This is a more sustainable and often more cost effective, efficient way of producing metal, and it sits at the heart of India's transition towards a circular economy.

4:22 Every year, we import approximately 8,000 to 10,000 tons of scrap metal spread across three metal scrap, around 4,000 tons of stainless steel, 3,000 tons of zinc, like a scrap, and two to 3,000 tons of aluminum scrap. Once the scrap leaves the original country, it typically takes about one to two months to reach our facility in India. Once it reach us, we process it and add value through sorting, cleaning, smelting, melting, alloying, and machining, and converting into ingots, extrusions, products and other finished home before selling it onwards to end consumers across the automotive, solar, electrical and industrial sector.

5:22 To build a more complete business around this core activity, we have put together a group structure and with multiple subsidiaries, internal integrations. This let us capture a large share of the value chain rather than remaining only a scrap trading and processing business. We have three major operating subsidiaries. The first one is the metal... Frank Metal Recyclers Limited. The second one is Nupur Extrusions Private Limited, and the third one is the Tricot Auto Tech Private Limited. On a consolidated basis, after making adjustments of subsidiaries transactions, total revenue of INR 83.03 crores during the quarter with the rent wise breakup as entered.

6:20 NRL at approximately INR 40.68 crores, Prime Metal Recycling at approximately INR 49.19 crores, Nupur Exclusion at approximately 9.75 crores, Tricot AutoCheck at approx... 12.52 crores, and other at approx... Rupees 93 lakh. Let me take you through each of these subsidiaries briefly along with their expansion plans. Prime Metal Recyclers Limited has recently entered the aluminum extrusion business, taking aluminum and shipping it into long profile and section used in construction, modern shuttering, furnitures, door windows, and other industrial applications.

7:12 Using extrusion machinery, we have already invested in frank metals plans for the capacity expansion here with the objective of building a scalable aluminum extrusion business over the 1,800 metric ton per annum capacity against total production capacity of 2,400 metric ton per annum. Getting solar plant manufacturing and OEM's original equipment manufacturer. Customers, both segments seeing strong secular demand in India today. Tricon AutoTech Limited is our forward integration into auto components manufacturing.

8:01 We hold 51% stake acquired at an enterprise value of approximate rupees 24 crores. That Tricot supplies reputed customers, including Tata Motors Pune, Tata Motors Jamshedpur, Tata Motors Arudupur, Multitech Auto Jamshedpur, Sundaram Farkner and Interpump Hydraulics, and other more OEMs are coming to join. This let us convert some of our recycled value added metal currently into finished components rather than only selling processed metal, and we continue investing in additional plant and machinery to scale the business.

8:48 One important feature of our model, broadly about 70% of our value added products are sold directly to third party customers in open market. While the remaining 30% flow to our own subsidiary for further processing, this internal integration give us better control over quality pricing and realization across the value chain than a purely stand alone trading or processing business would have. Let me now spend a couple of minutes on our manufacturing footprint. Our core processing operation are built at the following location. If I'm talking about the Nupur Recyclers Limited, it's a Mandali plant.

9:35 So product wise, we are manufacturing zinc and zinc, 600 metric tons per annum. Capacity utilizes 500 metric tons per annum. It's about 83.50%. Our new facility in Sapla, it's coming, and it's in the construction phase. We are... We will produce zinc ingot, aluminum ingots in it with 200 metric ton per month under construction. New facility at. Again, we are coming with a world class facility of LFP battery, and we recycle 6,000 per metric metric ton per annum. It's... And it's it's in a construction phase.

10:22 So the... If I talk about the frank metal recycling, is it in facility in Palgwal, Haryana? So we are producing zinc ingot, 2,500 metric ton per Capacity is the same, 2,500 metric ton per annum. It's utilized by 100%. Fine metal, aluminum ingot, 1,200 metric ton per annum. Capacity is also same. It's utilized by 100%. Fine metal, aluminum blade capacity... Installed capacity is 1,000 tons, and we are still producing 300 tons per annum. Its capacity is 1,000 ton per month, and we are producing 300 metric ton per month. It's about 30... It's running at 30%.

11:20 Bang metal exclusion capacity is 2,002 metric ton per annum, and we are still using 2,000 metric ton per annum with a 100% capacity. We have another facility at Panchanazar, Rudupur. It's a Cycot Auto Tech private limited. It's producing... We're producing OEM auto components. 2,500 metric tons per annum is, like, installed capacity. If I say to use a ADC 12 in it, and we are using we are running at 48%. It's 1,200 metric ton per month... Per annum. So we have another facility, Nupur Extrusion in Sampala, Haryana.

12:07 This is a aluminum extrusion we are producing here. 2,400 tons per annum is a... Is installed capacity, and still we are using 1,800 tons per annum. It's running at 75% right now. Let me know let me now come to what we believe in is the next big leg of growth for Nupur Recyclers. Before the specific point, a word on why we are excited excited about this opportunity. India's lithium ion battery recycling industry is still at an early stage, but expected to grow rapidly as electric vehicle adoption scale up. Industry estimates suggest recyclable battery volumes in India could rise to approximately one twenty eight gigawatt hours by two zero three o, with EVs accounting for close to half, could rise to approximate half of this. Against that, India current organized recycling capacity is estimated at only around 60,000 to 70,000 tons a year.

13:29 So the industry needs to scale up several times over in the next few years. This is further supported by the battery waste management rules, which mandate extended producer responsibility and minimum material recovery targets by the customs duty exemptions on lithium ion battery scrap announced in the union budget. In short, we see a meaningful demand supply gap and a significant multiyear opportunity for recyclers with our right technology and exclusion capability. It is against this backdrop that we setting up a new facility in Sampla Haryana with 6,000 tons LFP battery recycling, lithium iron phosphate battery recycling plant spread across five acres expected to become operational over next two to three months.

14:34 Through this facility, we will extract lithium, iron phosphate, graphite, copper, aluminum, and a small part of copper sulfate. From used LFP batteries, valuable materials that can be sold back into the market or reuse in battery and industrial manufacturing other products. This is a natural extension of our existing recycling expertise and, importantly, is expected to be a meaningfully higher margin business than our existing product mix. We will share more on capacity, ramp up investment and expected contribution closer to commissioning.

15:25 Let me now turn to our financial performance for the quarter. Before I get into the numbers, I want to reiterate a point that we believe in is central to the Nupur story. We are a debt free. We are almost debt free company at our core, and we intend to fund our ongoing expansion plans, including the transfer facility, the prime metal, aluminum exclusion investment, and the upcoming LFP plant largely through internal. Other than relying on external bonds. We believe this gives us both financial stability and flexibility as we pursue our next phase of growth.

16:14 Coming to the numbers. On a consolidated basis, our total revenue for q one financial twenty seven stood at approximately rupees 83.03 crores compared to rupees 53.03 crores in q one financial year twenty six. A growth of approximate 56.6% year on year and a growth of approximately 37.3% over rupees 60.47 crores in Q4 financial year 'twenty six. This growth has largely been driven by higher volumes in our core scrap processing and trading business, better utilization and a steady ramp up in contribution from Frying Metals and our Nupur exclusion as well as of Tycoat Auto Tech facility.

17:06 Our EBITDA for the quarter came in at approximately INR 12.86 crores compared to INR 6.08 crores in Q1 financial year 'twenty six and INR 6.83 crores in Q4 financial year 'twenty six, a growth of about 111% year on year and about 88% sequentially. That translates this translates into an EBITDA margin of INR 15.48% for the quarter compared to 11.46% in Q1 financial year 'twenty six and eleven point two nine percent in Q4 financial year 'twenty six. This improvement has largely come from three factors. First, bed capacity utilization, particularly at our fine metal facility.

18:03 Second, a richer product mix with a growing share of higher value value added products such as extrusion rather than plain scrap trading. And third, continued cost discipline across our sourcing and processing operations. A word on why we believe this margin improvement is sustainable, not a one off, as our value added vertical, exclusive today and the electric business, going forward become a larger part of our revenue mix. Blended margin should structurally improve since these products are meaningfully better utilization than clean scrap trading.

18:53 Being largely debt free also means we do not carry a heavy finance cost burden. And as our new facility is towards full utilization, we start to benefit from operating leverage as well. Taken together, we see this as a structural shift, to not regular pricing in one particular quarter. Profit after tax at all the quarter stood at approximately INR 7.39 crores compared to INR 4.04 crores in Q1 financial year 'twenty six and INR 3.35 crores in Q4 financial year 'twenty six, a growth of approximately 82.6% year on year and 120.6% subsequently.

19:49 Our cash margin for the quarter came in at 8.9% compared to 7.62% a year ago. I also want to touch upon other income, which stood at approximately INR 3.69 crores on a consolidated basis for the quarter compared to INR 2.05 crores in Q1 financial year 'twenty six. With that, thank you once again for your time today, for your continued confidence in Nupur Recyclers. I will now hand the call back to the moderate to open the floor for your questions.

20:41 Thank you so much, sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may press 1 on their touch tone telephone. If you wish to remove yourself from the question queue, you may press 2. Participants are request to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. First question comes from the line of with Shah Family Office. Please go ahead.

21:28 Hello, sir. Good evening. So, sir, I have couple of questions, you know, starting with the expansion and the capital raised for the same. So how are you right now prioritizing the allocation across the capacity expansion, working capital, the LSP LSP recycling that you mentioned, and also the downstream integration? Could you please, you know, help us provide some color? Yeah. Can you ask one by one of your question? Because in your one question, there is a lot of questions inside. So if you if you please, one by one, for me, it's very easy to listen you and reply on the same.

22:16 Okay. Okay. No problem, sir. So, sir, my first question was on the capital base for expansion. So, you know, I just wanted to know how for allocate capital raise between the capital expansion, working capital. So so we have the enough capital in our books for... From our internal accruals from the... So many years what we are earning. So we deploy the same for our expansion, for land acquisition, for, you know, for the machinery and other things. And the allocation, the... Your next question was this, what... How you can allocate these funds?

23:03 So whenever the required... Any, you know, company or subsidiary, Nupur Recyclers will put the money on his shareholding, and we explore more for the machinery, spending on machinery, as well as on working capital. Okay, sir. Understood. Sir, my next question is, you know, in... Over the next three to five years, how do you see growth being distributed in value added products growth capacity expansion? How is it? So so we have still three subsidiaries. One is the prime metal, one is the Nupur extrusion, and the third one is the TricoDiCode AutoDiC.

23:52 So every company is running about, you know, 30 to 40% of the installed capacity. Right? So we... As a as a promoter decision, we are we are looking. If if there is any required, we can go through it. Sir. Understood. Sir sir, just one more question. So as Nupur expands across the recycling and the downstream processing which you have, so after this, how do you see the business mix margin profile in the next three to four years? So margin is the same. See, we... For the trading business, sir, we are we are doing business on a margin of two to 3%.

24:48 If we go for the forward integration, smelting, and others, again, two to 3%. And if we go for the machinery and for the OEM business, again, two to 3%. So mostly our business is about from seven to 10% of the margin. Okay, sir. Thank you so much. That was really helpful, Ahmed. Great. Thank thank you. Thank you. Yeah. Our next question comes from the line of Bhavya Agarwal with Share India. Please go ahead. Hello, sir. Thank you for giving me this opportunity. Sir, I have couple of questions. My first question being, sir, Nupur extrusion current capacity or utilization capacity expansion management So Nupur Exclusion, sir, is a joint project in Sampala, Haryana with a two acres of land and about 30 of... 40,000 of, you know, square feet area is covered.

26:00 So here we are running five... We're running a five inch press right now with a capacity of 200 tons per month of extrusion we are producing. We already ordered one more Chinese automatic machine. Is for four inches machine machine. So it should be in for the next two or three... The next... Last quarter or maybe the financial year end, this financial year end, we will go or buy about three fifty tonnes per month. This is the final capacity of this Nupur extrusion plant.

26:47 Okay, sir. So my next question is, sir, zinc in got facility commissioning Sir, facility commissioning expected timeline total capacity So, sir,, we already land purchase construction for the next two to three months manufacturing So we are coming with sample plan based in Nupur Recyclers, and its capacity for this... For zinc zinc ingot is about 200 metric ton per month and about 200 metric ton of aluminum production in ADC 12.

27:43 And mostly, this is for the lithium extraction from the LFP batteries. So your plant LFP battery recycling. Next question, sir, LFP battery recycling opportunity management business group strategy company So, sir, recycling battery, but we are coming with with the hydro and pyro, both of recycling. So battery viewpoint of management So we are taking this first mover advantage, and maybe we will get a more profit from this business.

28:58 Okay. Okay. Thank you, sir. That's all from my side. Yes. Yes. Yes. Welcome. Thank you. Our next question comes from the line of Kaushal Sharma with Equinix Capital Venture Private Limited. Please go ahead. Hi, sir. Very good evening. Am I audible? Yes. Yes. Kaushal, you're welcome. Yeah. Congratulations for good start of numbers, sir. Sir, question overall recycling segment So just want to understand EBITDA margin per ton across this segment Sir, if I say back to back trading it's about two to 3% of the purchase price.

29:51 Right? Okay. If we go if we go to manufacture a d c 12, three, five secondary zinc alloying, good for zinc outside and for other products, then again, we are at at two to 3%. And if we go for aluminum billet from scrap, one is the import of scrap, then sorting of scrap, then alloying of scrap, then making a billet. And then, again, from billet to extrude. It's again two to 3%. So we can say seven to 10% profit.

30:41 So in terms of Such a business first mover advantage. But still, I'm not able to comment on it. But it should be around 10% minimum because we can carry a EPR also need. And, sir, you don't... And if we got the part CapEx or just have overall CapEx or expand particular landages.

31:39 Sir, you could five acres land. One lakh 35 square feet area, covered area. About 50 to 70 crore rupees land building and We have... We are trying to buy other land also. And near to this, maybe we can go about to but still after one year and one and a half year, we can... If the results are good, then we can go for further.

32:29 And, sir, balance sheet long term liabilities be 24 Long term liability for 24 crores? Yes. In which company? Is it ConsolMe or it's on stand alone? It is it is in consolidated balance sheet. Long term borrowings is around 24.14 Yeah. That's long term borrowing. When we invested in... When we captured this company, Tyco and AutoCheck, in 24 rupees.

33:15 So on that time, we took some loan from Tata Capital, I think. That was... That is the same. Sorry? So I think it's about 10% and we have a long term about five to six years because we are as a Nupur Recyclers 51%. So we don't want to put, you know, a large amount from the Nupur Recyclers. That's why we took a loan from Tidal Capital, I think. And, sir, researching business sourcing is very critical for aluminum point of challenge whether it is being aluminum or Sir, sir, we are in this business from the last three decades. Right?

34:17 So we have a good experience for importing the material from everywhere. Or the second thing is we... In my past experience, we never hedge the US dollar, euro, and pound and never hedge on the NRL. So we buy and sell, and we carry our stock in our yards. So always, we we only buy and sell. And in future, we have energy, like, and all the Yes. Yes. Yes. Because of all... Volatile market and because we are carrying a stock also, so we always... What we found in the past that if we do not hedge it, then we make a profits.

35:08 And, sir, is for a business of working capital, receivable inventory and payable days. So, sir, mostly, OEMs can talk about because we are registered as a SME. So everyone should have to pay us later forty five days. Right? And cost will be about because when we... You are producing the material and sending to their own subsidiaries, importing and scrap sorting and manufacturing, alloying and everything. So business can be. I'm sorry to interrupt you, sir. But, Kusha... Kusha, please, rejoin the queue for this question. One follow-up question on this working capital Can I please rejoin? We have a lot of participants, sir. Please rejoin.

36:02 Thank you. Our next question comes from the line of Tarshil Jawedi with Crown Capital. Please go ahead. Hello. Good evening, sir. Thank you so much for taking my question, sir. Firstly, congratulations on a great set of results, sir. Sir, revenue growth sustainable every quarter and quarter sustainable. Yes. Yes. You are very much right. This quarter and this quarter will be more improved, and the the... Over next quarter, we are trying to improve more. Okay. So every quarter, there'll be some improvement.

36:47 Yes. Yes. Because we... Because over all the facilities are running now very well. Yes. Facility So plant and machine install. We are trying our best to, you know, to do more and more revenue from the scrap trading, from the manufacturing of ingots, and other OEMs products and machinery products. Okay. That's that's really great to hear, sir. Sir, I just wanted to know, sir, or sir? Sir, sir, projected and medical return numbers.

37:48 I don't think that you can sir statement. Okay. Okay. Or top line. So it's company Okay. Okay. No. No. That... That's really great to you to know, sir. Sir, are we back margin of the... Think I'm look... I think best history can there. So I think one of the right, like, 10% roughly So every every business what we are doing is about, you know, seven to 10%. Right? So as I told earlier, also the others... The... This scrap business of metal scrap business is a volatile business. Right? So maybe sometimes a little bit come most of time for a... Definitely, if we say the whole year is good.

38:42 Okay. Okay. Fair enough. So just last question from my end. Total capacity capacity, think, lithium plant is 50, 70, all plan capacity Yes. We are we are looking low... We are we are looking in more plants. Whatever the plant come from, 50 crores to 150 crores, we are looking from the NCLT also. But on the same range, Joby company are recycling only. We are looking to acquire some lead recycling unit also. So different different sectors to expand more, not internationally, but in India. So make in India Okay.

39:36 Sir, funding plan internal accrual fund raise Sir, we don't have any debt on Nupur Group. We fund this quarter over to charter motor. Correct. We have the funds in our system. So about a 100 crore plus raise plant then we go forward to raise the money. Otherwise, from our internal equivalent profits, we we will carry the same and, you know, acquire from our our own funds. Okay. Thank you. That's it from my side. Thank you. Thank you. Thank you. Thank you. Next question comes from the line of with Nupur.

40:25 Please go ahead. Am I audible? Yes. Yeah. So thank you for the opportunity, sir. Sir, I want to understand on the CapEx which you are planning on the battery recycling. Then Yes. Where we are expecting the procurement of these batteries and after once we recycle all the components out of it, do we have any long term tie ups with our customers for the supply of those components? And, also, I want to understand that how we are planning to hedge ourselves against the prices going forward once the plant will be operational? So your first question is from where we acquire the batteries. Right? Yeah. Sourcing of the. Yeah. Sourcing. So as you know that we are in the business of import.

41:22 In overseas also, there are a lot of stock is still for people want to sell for the lithium ion batteries, LFP batteries. Okay. So this is one point because we are in the import business, and we know each and everything for the import. And the second one is lot of the new companies coming to manufacture LFP batteries, like Tata, Lite x I, Lite, other batteries company. So if... And they... Or when they produce the battery, it's about 10 to 15% is the rejection coming from the new batteries.

42:08 Okay? So we can buy from them also as well as we can buy from the source of import as well as of the local from the domestic market. So I think for this year, I think it's one lakh 27,000 tons of batteries coming, and we are only installing only 6,000 tons of battery plants here. Okay. And on the supply... Like, on the client side, do we have any contract in hand to supply the... Once the battery is recycled? Like, how we expect to, like, sell... Sold the components which we get out of the recycled one?

43:02 So first, we must know about what is coming from the recycling of the electricity. Right? So the first point is the aluminum. It's about 10 to 12% is aluminum coming from the after recycling. So it's used in our all... It's used in our extrusion plant. Right? In house for the the second thing is the copper. We extract this one also we use for our EDC 12 manufacturing as well as we can make a copper in what? And sell it in the markets. One one is the... We extract lithium.

43:50 We can sell in the market for for the manufacturer who are using lithium for industrial grade. It's not... We are not expecting the battery grade right now, but our team is working on it, and we sell these lithium to the manufacturer who are, you know, doing industrial grade other items. Again, phosphate, we extract from it as well as we extract graphite. So we are exploring the market. Once the plant will start, then we can tie up the others, sir, from both the side, from the buyer side as well as from the sales side.

44:41 Got it, sir. And, sir, the last one on the hedging side as, like, as we know that we already have the aluminum ex... Extrusion plant. So I want to understand that how we hedge ourselves against the raw material cost. Because when we look at the market, the secondary aluminum is not a listed on any website. But there is a... There are other players in the industry which are not... Which are hesitating to enter into aluminum market because there is no hedging availability possible for them. So how we hedge ourselves against the fluctuation in the primary aluminum prices? So we are we are not using more primary aluminum. We are using imported scrap like extrusion, like tin table, some of wire, aluminum.

45:39 So these items we are using and a small 5% to 10% of the primary aluminum ingots, right? Still, again, we are not hedged anything. We always depend on our stock as well as offer back to back buying our selling. Okay. How the prices of secondary aluminum is defined in the market? If you can explain me that because, like So it's it's based Yeah. It's based on LME. It's based on LME. It's based on London Metal Exchange LME. Whatever the opening of closing of the LME and aluminum, So the... In domestic market, the price is settled on the demand supply as well as of the LME indicates.

46:33 So there is a lag or it's direct linked to the aluminum prices, the primary one? Sorry? I'm asking that in the secondary, like, as you say that it will be defined by the prices of aluminum which is listed. I'm just asking that it's... Will it be a lag of a month or two, or it will be, like, a spot basis only? Like, there is a direct link or there is a lag It's always it's always on the spot basis because we are selling today. We never, you know, sell on three months basis or two months basis. We always sell and purchase on on today pricing. Okay. Got it. Okay. Thank you so much.

47:18 Great. Great. Thank you. Our next question comes from the line of Radhika Dobalkar with Acquium Capital. Please go ahead. I'm just sorry. Thank you so much for the opportunity, first of all. I wanted to ask that the inventory rates had increased. Our inventory rate increased during March 25, and then we were able to reduce it a bit in March 26. But do you have any plans on how to further reduce it? Have you thought about that? Yes, sir. We are trying our best to reduce the inventory. But because we are, you know, gaining on this inventory importing. So sometimes what happened is the shipping time, if from Europe, you say it's twenty days for the ship from Hamburg to Mundra. And sometimes it takes more time. So that's why we need forty five to sixty days of inventory in our system.

48:30 So the plan should run, and we can supply our ingots, extrusions to our OEMs and our buyers. We are trying because we also know that there's a huge cost involved in the inventories as well as the risk is also because we are not hedging anything. So we try our best to reduce. I think the last thing... Last two, three months, we'll reduce some inventory. But, again, due to war, we have to again increase our inventory, and that's the reason for it. Perfect. Thank you, sir. Great. Thank you. Our next question comes from the line of Kapil Ahuja with Equinix Capital Venture Private Limited.

49:18 Please go ahead. Yes. Hi. Hi, sir. This is Kapil Ahuja. Congratulations for good results. I would like to I wanted to ask regarding this battery. You will be taking black mass from outside also or the black mass that you crush the batteries that you crush will be sufficient for black mass and then further processing into hydro metallurgy? So I think once we start our operation in... Of the unit in. So I think we have a sufficient black mass we produce from the LFP battery. If there is a requirement to buy from the domestic, we can definitely buy from the domestic market, but but still there is no plan to buy from the domestic market of black mark. We only separate aluminum, copper, and black mark from the battery.

50:22 And then to use the hydrometallurgy, we can extract the lithium, iron phosphate, graphite and other typical minerals from it. Right. And is your plant fungible? Can you procure NMC batteries also because the older vehicles do we have no, no, we don't. The NMC battery, don't require to explore more because we we don't want to sell, you know, this black mass. We want to be the full operation of the electric battery. So we use that technology to extract lithium, iron phosphate, graphite, copper. What be the capacity? What will be our capacity and what's the capacity for hydrometallurgy?

51:18 So it's 6,000 tonnes per month. We can we will 500 tonnes per month capacity we installed, 6,000 tonnes per annum. But we can increase it also. It's a continuous process in the hydrometallurgy. And the realization for one tonne will be approximately? So it depends on the prices of lithium. If you know about the last two years back, the lithium prices was about rupees, 7,500 per kg. And the the lowest was the... Eight months back or nine months back is about 700 rupees per kg. Now still, we had about 2,300 rupees per kg lithium prices.

52:17 So it's all depend on the market situation. Sometimes battery is coming at 50 rupees. Sometimes battery is coming of $1.50 rupees. So it's a demand supply and the prices of aluminum, copper and the other critical metals. And sir, you just answered regarding the import of the batteries. As far as I know, the import is strictly restricted, but it's not banned. But it should be we as Nupur Recyclers, are, you know, planning to go to MOEF and the central pollution control world. So it's not restricted. But if you have the license to import, then you must import. There's no such restriction for the importing of battery stack.

53:12 Right, right, sir. And sir, my last question would be, in FY 'twenty seven, how much top line can we do approximately from the battery business after shutting the battery and the end of August, we have about four or three, seven months in this financial year. Right? So Yes. I think the plant will start in two to three months or maybe three to four months because the construction is going on. So, hopefully, I'm not saying too much, but maybe the last quarter, it should be better, and we are trying our best to start the facility and the extraction of lithium and other products. I'm not sure anything about the numbers on what we will do because it's a starting phase.

54:05 So my last question would be... Okay, Kapil. I'm sorry to interrupt In Delhi. Okay, no worries. Sir, I'm sorry. Yes. You may please rejoin. Thank you. Our next question comes from the line of Shriansh Jain with IFL Capital Asset Management Limited. Please go ahead. Hi, sir. Thank you for the opportunity. Just a follow-up question. You mentioned that we are not engaging into long term contracts with any of our customer. Right? Like, we trade on daily basis according to LME price. Am I right? Mhmm. From the buyer side or from the seller side? From our side. Like, if we are trading... If we are having any deal with anyone, so it is on spot basis and there is no long term contracts with any of our customer?

54:53 From our customers. So if I say about the Tricon, so we are selling to Tata Tata Motors. Right? So Mhmm. We are selling about 43 single source, sir, for the Tata Motors pooling, more tempo of about two tons loading capacity. So we have long term contract with them. So for the... Every OEM, we have the long term contracts from the selling selling side. But for the for the scrap trading and for the other products, we don't have any long term contract because everyone is open to buy or sell. Because the market is volatile, so sometimes people want to buy, sometimes people do not want to buy.

55:41 And and how much percentage it would be OEM OEM sales as percentage of our revenue? So It's about 20 to 25... 22%, I think. 20 to 25. Okay. Thank you. Great. Thank you. Our next question comes from the line of with Ingrid PCG. Please go ahead. Chetan, we are sorry, but we are not able to hear you properly. Be a little loud, please. Hello? Yes? Yeah. Hi. Good evening, sir.

56:27 Good evening. You are? Yes. So very good questions there. So sir, revenue or revenue EBITDA margin to improve. So main reasons or FY 'twenty seven maybe? Sir, definitely, we are doing our best to increase our business, the revenue top line, bottom line. So the main reason is that we increased our capacity, and the second reason is the prices of the metal scrap as well as of the finished products increased by 10 to 25%.

57:13 That is also one of the reason that the top line and bottom line is increased from the part. Integration. And as well as the... We are, you know, forward integration from scrap to smelting, sorting, and the billet making as well as of extrusion as well as of in Tricourt, we have a large facility, a beautiful facility for for VMC machine, CNC machine, as well as of die casting machine. So that's why every company is now growing. Okay, sir. Okay. Understood. So, Q1 FY 'twenty seven gross margin 11.320.3%.

58:01 So is growth main reason Yes, sir. Growth market or metal scrap always a volatile definitely. One, 2% cut down or two, 3% for setup and never be, like, because company is running at their full capacity right now. Okay. Okay. Thank you, sir. Night, sir. Thank you. Great. Great. Great. Thank you.

58:53 We're then a follow-up question from with IFL Capital. Please go ahead. Sorry, sir. I just missed a point in my question. Actually, which is 20% of our business roughly. So, sir, how we manage the pricing? Because in case of large OEMs like Tata Motors or in local pricing, which fixed We are in... For example, if we are in three month contract pricing pricing anything. So the differential is what we were or agreement what is the condition there?

59:40 So the metal prices about the premium. Tata Motors parts. Tata Motors and then take a website. So Tata Motors was more price, like, quarterly average from the last three months due to of increase of aluminum prices of Tata Motors every month pricing So sir, in the start of the contract, price decide But if in that one month, because there is no hedging mechanism. Am I right? Last Tata Motors price $2.45.

1:00:53 310. $331.40... $3.72. $3.72. A month. So buying or selling. So Tata Motors monthly price Okay. Great. Thank you. Our next question comes from the line of Radhika with.

1:01:41 Please go ahead. Thank you again for the opportunity, sir. I would have one more question. So my question would be, what are the major challenges you are currently facing according to you on the company level? And how do you plan to overcome them in the next two years, three years? Right? And what would be the time frame in which you would expect to overcome them? So, ma'am, we are doing our business. So I said to day to day business normal challenges We are facing the only... Those challenges. But as of now, company but day to day challenges in business. Nothing more.

1:02:30 But still diversified geopolitical issues already different different countries. Countries we stopped buying or we can... We try to buy from the other countries. Okay, sir. Got it. Thank you. Great. Thank you. Thank you. Ladies and gentlemen, that was the last question for today. I now hand the conference over to mister Rajesh Gupta from Nupur Recyclers Limited for closing comments. Thank you, and over to you, sir. So thank you everyone for taking the time to join us on the call today and for your thoughtful questions.

1:03:21 Should you have any further questions or need any additional clarifications, please feel free to reach out to our investor relations adviser at at. Thank you very much, and have a nice evening, everyone. Thank you. Thank Thank you, sir. Take care, everyone. Bye. Thank you so much, sir. Ladies and gentlemen, on behalf of Nupur Recyclers Limited and that conclude this conference. Thank you for joining us, and you may now disconnect your lines.