Thank you, Sudha. Thank you, ladies and gentlemen, for joining us in the call.

I, Pankaj Harlalka, Head of Investor Relations at Shyam Metalics, wish you all a very good afternoon and a warm welcome to the third quarter FY26 post-results conference call. Before we delve into discussing the quarterly numbers, I hope you all had an opportunity to review our press release and the attendant investor presentation read along with the safe harbor statement, which are available under the investor section of our website, and the same are accessible in the BSE and NSE website.

To discuss the third quarter and nine months results FY26, I am joined by Mr. Brij Bhushan Agarwal, Chairman and Managing Director; Mr.

Deepak Agarwal, Executive Director Finance and Compliance; and Mr. Sumit Khetan from Orient Capital, our investor relations partner.

Now I would like to invite Brij Bhushan Ji to provide his perspective on the performance of the third quarter of the current financial year. Thank you, and over to you, sir.

Good afternoon, everyone. Thank you for joining us on the call.

The industry continued to face a challenging environment during the quarter. Global demand remains subdues due to the ongoing geopolitical uncertainties and fluctuation in key raw material prices.

In contrast, domestic demand remained stable during the period. Let me brief touch upon the prevailing operating and industry environment, which continues to evolve amid global and domestic development.

Globally, the steel industry has been impacted by trade-related action, including tariff measures in the key area and market such as US, which has been altered international steel flows. These development have led to higher diversification of steel into alternative markets, creating some pricing pressures across regions, increasing volatility in global steel prices.

From domestic prospect, India economic fundamental remains structurally strong. Steel demand continue to be supported by infrastructures, development, manufacturing activities, urbanization, with global spending on huge infrastructure such as road, railways, power, urban infrastructure driving demand for long product.

However, near terms demand in certain retail and secondary segment remains caution, leading to selective pricing pressure. Despite these challenges, we are pleased to report a decent, strong, resilient performance by Shyam Metalics.

During the quarter, our volume growth on year-on-year is 25% higher, and revenue growth is almost 18%. Over the first nine-month of the year, Shyam Metalics delivered solid growth in both terms of revenue, EBITDA, highlighting the strength of our business model.

This performance was driven by our integrated operations, diversified portfolio, sustained focus, and cost efficiency. During the quarter, we successfully commission and started commercial production of 0.45 million ton of blast furnace at our Kharagpur plant.

This commissioning meaningfully increase our steel-making capacity, strength our integrated manufacturing setup, support our long-term growth ambition. Further, I am happy to announce that in the last quarter of FY26, the 90 megawatt of captive power plant and 0.15 million ton of color-coated plant are expected to be commissioned, with their prospective impact in the cash flow and become clearly visible for FY27.

Additionally, the backward integration of aluminum flat product of 0.6 0.06 million ton per annum with aluminum castor, mill, the new foil plant capacity of 20,000 tons per annum to be commissioned by June 2026. Building on this momentum, I am pleased to announce the board has approved the fresh capital investment of ₹6,660 crore to support the next phase of our growth.

This investment will be used for capacity expansion, improving the processes, and developing more downstream and value-added product. The proposed capex will be funded primarily through the internal accruals and borrowing if required.

These investments are aligned with our long-term goal of expanding operations, improving efficiencies, strengthening infrastructure, increasing margins, while maintaining strong, steady, sustainable growth. To further strengthen our board, we are pleased to announce the appointment of Mr.

Subrata Bhattacharya as a additional director for the term of 5 years, subject to the shareholder approval. Mr.

Bhattacharya is a very distinguished metallurgist and seasoned corporate player with over 39 years of extensive experience in specialty steel, stainless steel industry. He has previously served as whole-time director at Jindal Stainless Limited and COO of Viraj Profiles Limited.

We warmly welcome him to the board of Shyam Metalics. On the regulatory side, we welcome the decision to impose the safeguard duty on steel import.

This move is extremely supportive for domestic manufacture as it helps address unfair import pressure and improve pricing discipline, stability, and support mechanism in the market, and create a better support capacity utilization. To conclude, we remain focus on sustainable growth, improving profitability, creating long-term value for our valued shareholders, with disciplined execution, prudent capital allocation, and clear growth strategy.

We are confident of closing FY26 with strong note. Thank you for your continued support, trust, and we look forward to engaging with you in the quarters ahead.

With this, now I conclude my speech, and would request our CFO, Mr. Deepak Agarwal, to take us through the financial performance.

Thank you to all.

Thank you, sir. A very good afternoon and a happy New Year to all the participants.

I thank you, all of you, for taking time out on this call to discuss the result for the third quarter of the current financial year. For the Indian steel industry, the current phase is characterized by healthy volume growth alongside persistent pricing challenges.

Incremental domestic capacities coupled with global price softness have kept realization under check even as demand remain steady. Overall, while the external environment continue to remain dynamic, the underlying fundamental of the Indian steel industry remain intact.

At Shyam Metalics, our diversified product portfolio, integrated operations, and prudent capital allocation approach positioning us well to navigate near-term challenges and continue delivering sustainable performance over the medium to long term. Despise these headwind, Shyam Metalics had delivered a strong operational performance in quarter three of the current financial year, driven by higher volume, improved product mix, and disciplined cost management.

I would like to share a quick review of the reported consolidated financial for the third quarter of the current financial year. The company reported an operating revenue of ₹4,421 crore in quarter three of the current financial year, registering a growth of 17.7% over quarter three of the last year.

This growth was primarily driven by a 25% year-on-year increase in volume, reflecting successful ramp-up across key product segment and capacity utilization. For the nine-month ended December 31st, 2025, the company reported a consolidated revenue of ₹13,312 crore, registering a growth of 20.9% over the nine-month of the last financial year.

On the profitability front, the company recorded an EBITDA of ₹539 crore, up 6.3% year-on-year, with an EBITDA margin of 12.2%. Operating EBITDA stood at ₹487 crore, a growth of 6.9% over quarter three of the last financial year, with the operating EBITDA margin of 11%.

Margin were impacted by lower realization in carbon steel and sponge iron, partially offset by higher contribution from the aluminum, stainless steel, and iron pellet. If I have to speak on nine-month ended 31st December 2025, the consolidated EBITDA of ₹1,781 crore, registering a growth of 16.6% over the last year, and operating EBITDA of ₹1,606 crore, which register an 18.9% growth over the last year.

The profit after tax for the quarter stood at ₹198 crore, broadly stable on a year-on-year basis. The PAT margin for the quarter was 4.5%, which remains healthy considering the current price environment in the steel sector.

For the nine-month ended 31st December 2025, the PAT is ₹749 crore, registering a growth of 8.6% over the last year. From a product prospective, the iron pellet realization improved by 5.4% year-on-year, while aluminum, stainless realization increased by 8.5% 8.4% and 11.3% respectively, highlighting the benefit of our diversified and value-added product portfolio.

Realization in specialty alloy, carbon steel, sponge iron remained under pressure due to the market conditions. In terms of volume, the company deliver a strong growth across several segment.

Iron pellet volume increased by 43% year-on-year, specialty alloy volume increased by 18.7%, stainless steel volume increased by 8.8% during the quarter. We also continue to scale up volume of our color-coated and pig iron.

As our ongoing capex project are progressively as planned, as of nine-month of the current financial year, we have already incurred ₹8,038 crore against the total project planned capex of ₹9,425 crore, which is almost 85% of our total capex plan. Out of this ₹8,038 crore, ₹5,357 crore has already been capitalized.

These investments are stating to deliver benefit through better operational efficiency, lower cost, improved product quality as this project stabilize further. We expect additional benefit to reflect in our performance in the coming quarter as well.

In line with the long-term growth plan, board has further approved a capex of ₹6,660 crore, which will be deployed towards the capacity expansion, value-added product, and strengthening backward integrations. These investments will enhance scale, improve cost competitiveness, and support margin expansion over the medium to long term.

This capex will be incurred through internal accrual majorly and borrowing if required from time to time. We remain confident of closing for the current financial year on a strong note, and supported by a robust volume, increasing contribution from value-added product, and disciplined execution of our growth strategy.

With this, now I open the forum for the question-and-answer session. Thank you.

Yeah. Hello, good evening, everyone, and congratulations for a good set of numbers in a very testing environment.

A couple of questions from my side. Congratulations for announcing yet another capex plan.

The first question is essentially on one of the elements of this capex plan, that is wagons. Seems to be a little bit unrelated area of our operations.

Just wanted to understand the kind of synergies that you are seeing, and particularly this particular industry, in Calcutta itself, we have a number of companies. How different we will be from those companies?

Just wanted to understand that strategic rationale. That is the first question, sir.

Wonderful. Thank you, Amit.

See, you know that Shyam Metalics is now setting up a aluminum backward integration with a cold rolling mill. We'll be making a lot of aluminum sheets.

We are coming with our stainless steel flat product, which is going to be commissioned in next couple of years. We are setting up an HR coil plant.

If you see in the wagon industry, the major raw material is the backward and forward integration to our existing proposed plant. Also, if you see the margins in the wagon, and the advantage what we have, it is a very low capex, the total capex is close to hardly ₹200 crore.

We have a complete infrastructure available as a railway line, as most of the infrastructure required for the sheds and all for the wagon plant in our existing plant. It will add a lot of value because once we make a product, we have a lot of value-added product in our existing manufacturing facilities, as well we have a lot of un-sized product, which will be able to create more value addition in the wagon plant.

It is a very small investment, and if you see the railway demand which is going to come up in the near time, we are seeing the infrastructure is growing, and I feel this is the area where we should start with very small. It's a very small capex, and once we see that we are totally convinced with the strategy, growth and all, we have further area of expanding into a various kind of a high value-added wagon business.

Value wagon business will start basic one in the stance, but later on we can get into metros, we can get so many. This is just a stance of a testing new project where the backward and forward integration has a lot of value to us.

We have a captive railway siding, we don't have to build up a railway line, we don't have to build up so much big infrastructure which is required for the wagon plant.

Thank you. Got it.

The second question is essentially on the portfolio itself, product portfolio. If I look at it, there are four distinct buckets of products now.

You have aluminum foils, stainless steel, we have longs and flats in carbon steel. Going ahead, where the focus will be?

I understand, broadly it is on downstream products, but you have recommended the induction of Mr. Subrata Bhattacharya.

Is it that we would be focusing on stainless in the near term or, going ahead, where do we see your capex coming?

Very interesting question. I'll just brief you, if you see the Shyam Metalics as a company, we are a metal company.

We would definitely like to invest in the future sustainable long-term value chain. If you see in last 3 years, we started with a small pilot plant of aluminum foil plant, now we are close to around ₹1,000 crore, and in next 2 to 3 years, we are targeting that we should be close to ₹3,000-₹3,500 crore business will be able to develop with a backward integration creating more margins in aluminum, knowing, understanding the business.

Since we have now more than 40% of our export market on the overall business, we are adding a lot of value and all. This comes from the aluminum chain for next couple of years.

It is giving a decent margin, the EBITDA margins, the product margins, and the innovations on the new metal in the aluminum space, a lot of action is being there. From the stainless steel point of view, yes, now we are in the carbon steel where the prices are always very, very competitive.

Stainless steel is also one of the value addition over the carbon steel. Since we make specialty alloy, we have our own power, we have our own steel, we are focusing more on the 200 and 400 grade stainless steel where we have a knack, and we should be able to capitalize more on the value addition.

Stainless steel is a kind of a value addition in our existing metal space. As the per capita of stainless steel in our country is very, very low, and the kind of penetration which we are seeing in the stainless steel businesses like in the construction steel, in the other flat products and all, in the white goods, we are seeing there is a lot of in the railways, in the other infrastructure, special engineering manufacturing, like India is becoming the hub of the smart manufacturing.

I'm seeing a lot of penetration in the stainless steel, and this is going to add a lot of value forward and backward through our existing industry, creating our model more robust, sustainable, and creating more value for our shareholder.

Great. Thank you,

and

all the best.

Thank you.

Good afternoon, sir, and thank you for the opportunity. Sir, my first question pertains to our aluminum segment realization, which seems to be down on a sequential basis, contrary to how the aluminum prices have moved up in the international markets.

How our mix has been deteriorated, and how does it impacted our overall performance? See,

there are two things, Vikash, to calculate. One thing is, we are not the primary manufacturer of aluminum, we are the value-added manufacturing hub of aluminum.

In aluminum, there are a lot of sections, a lot of products where we have a high EBITDA, and there is a lot of product where the EBITDA is little lower, but the productivity is higher. If you see the results in the terms of the numbers, we are increasing quarter after quarter.

Because of the volume is going up, and to see the best value per ton, EBITDA per hour, the decision are being taken accordingly. Yes, due to some forex fluctuations, maybe some imports are there for the foil or maybe some kind of a slowdown in the American market, some impacts are there, but it's not majorly affected.

Understood, sir. Sir, in our opening remarks, basically, we talked about the challenging condition still persists by the CFO.

Just wanted to understand after the safeguard duty, we would have a healthy price hike. Is the demand is still an issue because price seems to be on a healthy side if I just check on the domestic market as well from December onwards?

Safeguard duty has been introduced. There is a decent price increase from this month onwards, from January onwards.

Last quarter, the price was extremely low, and there is a lot of volume in the transit by the secondary in the hand of secondary people, it takes time to evacuate. Overall, as a country demand is concerned, we are utilizing our plant at more than 90%, 95% capacity irrespective of some little bit of price pressure, but we are able to sell the material.

Not majorly, but, yes, things are going to improve because we know the country is growing, the demand is growing, and to sustain the country growth, we have to produce 300 million tons. We know how the systems are working now.

We are extremely optimistic and extremely bullish on our business.

Understood. Sir, this ₹6,660 crore is over and above that ₹9,700 crore capex, right?

The total pending capex at this point of time would be ₹7,500 crore, is that numbers correct, which we will be spending in 3 years?

Yes. Deepak,

question to you,

yeah. Yeah.

The remaining capex is around ₹8,000 crore, which will be incurred in the next 3 years. This quarter, last quarter, we will be trying we will be incurring around ₹500 crore, and every year we will be incurring around ₹1,500 to ₹1,800 crore every year.

Understood, sir. Sir, just one last question.

This HR plant which we are planning to set up, which would be set up in which of our plant, and how much of the space we would be available post this expansion as well to incorporate the future expansion?

See, this plant is coming up in Bengal side, Jamuria plant. Apart from this, we have enough land and some more land are under acquisition.

For at least next 4 to 5 years, we don't have to look back. Yeah.

Understood, sir. Thank you, and all the best.

Thank you.

Hello. Am I audible?

Thank you for the opportunity. I just have a couple of questions.

Firstly, how are you seeing demand trends in Q4 and early of financial year '27, especially for the finished steel and value-added products? Could you throw some light on that?

See, we are extremely optimistic, I told you, because since last 1 and 1/2, 2 years, the steel was extremely challenging, and in spite of that, as a company, Shyam Metalics has been decently performing with a decent EBITDA numbers and all. Now looking forward with a kind of growth vehicle what we are seeing every quarter it is becoming robust.

Demand is not a challenge because whatever steel is being produced in the country, it is being consumed. We know if you are talking of 7% to 8% GDP and we are producing around, say, close to 160 million ton of steel every year compoundingly, we will be requiring around 11 to 12 million ton of steel.

We don't have to really worry on the steel demand side, cycle and all. Might be some kind of a geopolitical situations or maybe some kind of a uneven surprises what we are hearing from the Trump and these kind of a mystery, it is a part of a journey.

Actually, as a product, as a steel, we really should not be bothered. Market is very stable.

There's a good demand. We are seeing a lot of penetration happening in the private sector, smart manufacturing, rural developments, infrastructure, roads, railways, we don't have to worry at all.

Understood, sir. Understood.

My next question is on capex. You have already completed a large portion of your capex, which was around ₹9,400.

Which key projects will start contributing meaningfully from FY26, and which ones will take a little bit longer to ramp up? Could you quantify that?

See,

the blast furnace what we commissioned this year will be seeing at least more than 95% efficiency factor coming up from the coming year onwards. The Ramsarup is again second blast furnace, which you'll see a lot of action this year as well.

The cold rolling mill expansion of color-coated business, you'll see almost doubling this year. The aluminum backward integration plant is going to have another impact to double the revenue this year.

Then apart from that, a lot of other power plants and some little bit of minor engineering in the existing plants, the iron-making capacity of close to 200,000 tons, you'll see will be commissioned this year. There's a lot of action this year starting from the first quarter till the third quarter, we'll see a lot of new plants getting commissioned.

Understood, sir. Understood.

In previous quarters, you had mentioned potential benefits from PLI scheme for stainless steel. Has there been any further progress on this since then?

No, the plant is under the construction stage, and once you are commissioning the plant, then only you will be getting. These are all statutory compliances which are on place.

We will not get immediate results till we commission the plant. We have to wait for another 1 and 1/2 year.

Okay. Okay.

All right. Thank you for answering my questions, and all the best for the future quarters.

Hello. Am I audible?

sir. Yeah.

Sir, thanks for the opportunity. Sir, during the positive outlook that you are sharing on steel prices, I just wanted to understand what kind of margins are we looking in the fourth quarter and then for FY27 and FY28, if you could just share some numbers on that?

We will definitely see a substantial better margins in Q4 in comparison with Q3 because the price have gone up. As usual, if you see the history, the past and all, Q4, Q1 is always very inspiring because it's a season of construction.

We are done with all the festive and all. We expect that, at least if I'm not mistaken, if my finance people support me, close to 10% to 15% or maybe 20%, we will see more improvement on our margins and all this quarter and also subsequently in the coming quarters.

Yeah.

In addition to this, you should also look into that in the next financial year, there are a lot of project will be commissioned like aluminum foil, flat roll product, like aluminum foils, color-coated. Definitely margin will be improved, and also the growth will also be increased.

Perfect. Thank you.

Yeah. Hi, sir.

Just one question. Recently, this ₹400 per ton of coal cess was removed.

What kind of benefits are we expecting from that, and when will that start to flow through, or is some part of that already flowing in Q3? Because largely, I think power cost per kilowatt is largely similar, I think, on a Q-on-Q basis.

Actually, it's really doesn't have a major impact on our power because our power plant is based on the waste and waste gases and waste product which comes out from the steel plant. Already, these kind of numbers when you are seeing the revenue impact is there, it means there is a huge impact on the overall.

It has already been taken care of in the third quarter, and subsequently, whatever the carryover stocks are there, it dilutes slowly. We will see subsequently there will be a decent improvement in the coming quarter.

In power, definitely, it doesn't have that major impact because we don't use fresh coal, we just use the rejects and washery rejects and waste heat and all in our power plant.

Got it. Thank you.

Hi, sir. Thank you for the question.

Sir, first question, we are expanding capacities across our intermediate products including sponge iron, pig iron, and billets. If I compare that capacity expansion with our finished steel product including long and flat, we are a little aggressive more upon the intermediate product side.

Is this any strategic call or how to look at this? Because at this rate, we'll be selling our intermediate products even till FY27 or '28.

See, I don't know where did you derive this number, because if you see from the Bengal plant, the kind of HR what we are targeting close to around 1.6 million ton, and if we are consuming our hot metal, that is pig iron and the DRI, we are almost compensating, and we are out of the intermediate product from the Bengal plant. If you see the Odisha plant also, the stainless steel facilities and all what is coming up, slowly, slowly it will add.

We will not be completely zeroed down in the intermediate, and neither we want to zero down. We want to have some little bit of share to have a proper penetration and awareness on the market side.

Every intermediate product also what we sell, we sell in the profit margins and all. Yes, the time to come in next couple of years, you'll see that we'll be converting a lot of our intermediate product by ramping up our existing capacity and adding more value downstream.

Got it, sir. Directionally, in FY27, more or less we will be consuming all of our intermediate products?

No, no, not by FY27. It will be because HR is coming in 2, 2 and 1/2 year if you see what we declared, '29.

Probably from '28 end onwards or maybe early '29, probably we expect that we should be able to consume a lot of intermediate.

Got it, sir. In your slide on page number 23, what you are mentioned expected sales in volume FY28, these are sales to external clients for intermediate products, right?

All our sales are to the external system. We never calculate the sales of the intermediate transfers.

All sales are related to the.

Got it. Got it.

Thank you so much.

Thanks for the time. Sorry, I was on mute that time.

Many congratulations, sir, for successful growth capex without stretching the balance sheet. Very few times we see that.

That's many congratulations for that. Sir, my question is on hot roll mill.

I assume that we have 0.4 million ton of cold roll mill, obviously 0.5 million ton of that will be used in the hot roll. Going forward, do you want to go into sale of HRC coil, or can we expect that next phase, we can see further expansion in CR coil or further processing to galvanized product?

Very very intellectual question. Most appreciate.

You're right, Ashish. HR has a long gestation time.

Our strategic HR of setting up to close to 2 million or maybe 1.6 million ton at a price of less close to ₹5,000 crore is something we have to appreciate. We all know any HR product when we set up, we have to set up a complete iron-making facilities, downstream, and as a strategy of Shyam Metalics being so conservative and prudent, we had built up all our infrastructure, backward and forward integration.

Our immediate step is we have to take up the HR project, and we should try to commission it before time what we delivered, what we committed. In the time from close to 0.5 million ton, what I presume we will be able to do from this plant in next 1 year, we will definitely evaluate, and we are still evaluating to create some more facilities so that in the time to come, at least 60%, 70% we should be able to captively utilize.

These are all strategic, long-term, value-added product mix what my team is doing, and soon once we are through with our all diligence and board approval and all, we will like to share. These are all very small capex to the size of our balance sheet or to the size of the project what we are doing.

Yeah.

Understood. Sir, in this, just a small query on this hot roll mill plant.

Is this including of steel melting shop as well as hot strip mill also, or something else is also included in that?

No, no, nothing. Only steel melting shop and HR, Ashish.

Only steel melting shop and HR.

Okay. Because when I'm comparing this capex, normally our capex is much lower than the industry standard.

When I'm comparing this with even for NMDC steel plant, just for hot strip mill and steel melting shop, they did something like 3 million ton at around ₹2,600-₹2,700 crore. I was just wondering whether we are missing.

₹26,000 crore.

Sorry?

₹26,000 crore.

No, no, no. This ₹23,000 crore was for the entire project.

₹23,000 crore, yeah, yeah, yeah.

I'm saying just for steel melting shop and hot strip mill, their cost was something like ₹2,600 crore.

₹2,600 crore.

Yeah. That's why I was wondering, where I'm missing something.

No, no, no. You mean to say we are doing it a higher cost or you mean to say we are doing it a lower cost?

I'm not very.

No. See, their steel melting shop only costs around ₹2,000 crore for 3 million ton, and then hot strip mill is separately, which is around ₹2,600 crore.

That's what I asked, whether this 1.58 includes only hot strip mill or.

No, no, sir. We cannot set up any hot rolling mill at ₹2,600 crore.

There's some NMDC was a government plant which took almost 9 and 1/2, 10 years to set up. I will not be very clear, but for a million ton steel-making facilities, you need a billion dollar, which is around close to ₹8,000 to ₹9,000 crore approximately.

And. Sir.

Sorry? Sorry?

Because, that $1 billion ballpark, that includes entire thing, blast furnace, sinter

plant, coke oven, pellet plant, everything. This is what we are putting up just the intermediate plant of steel melting shop

and

HR mill. This HR mill has a capacity to do up to 3 million tons, but maybe in the second phase, we will ramping up by adding more steel melting shop and all.

At first phase, seeing the present scenario, we don't want to get into more iron-making and all, we want and we are targeting a very specialized product in our HR plant, a very thinner section and specialized steel as well.

Are we making slab also in this?

No, no, it is a CSP. It is no slab.

Completely.

We will purchase slab from the market, convert it into HR coil?

No, no, no, steel melting shop and we'll be making thin slab, which is as good as it's a completely hot rolling. No reheating.

There's no reheating in.

That means SMS as well as. This is the

latest technology of this 22nd century. We don't have to look back, and we have tied up with the world best conglomerate who is number one in the world, who gives to Nucor or all the world best plant and best plant in India also.

Nothing, zero-compromise.

Understood. Thank you, sir, and all the best.

Thank you, Ashish.

Yeah. Hi, sir.

Good evening, and I had a couple of questions. If you look at it, our EBITDA quarterly range used to be between ₹400 to ₹450 crore, say in FY25, and then now we move to about ₹500 to ₹570 odd crore range in the last four, five quarters.

Now with most of our capex already completed and probably just about ₹1,500-₹2,000 crore left, on the ₹9,000 crore capex that we've done, ₹9,000 odd crore, what would be our EBITDA range, quarterly EBITDA range, say from 1Q FY27 or whatever, onwards that we can see?

We are seeing this year we are expecting that we should be having a growth of close to 20% over the next year minimum, 20%-25% last year. Coming year as well, we are projecting that we should be maintaining the same growth what we are doing now.

If you see the finesse of the balance sheet, being in so multi varieties of product and all, we have been very perennial on our profitability, numbers and all, on our projections because in last couple of years, we have spent more on the cost side by adding power plants, getting into a value added, creating our institution more perennial and more sustainable. We expect that we should be growing at least close to 15% to 20% year-on-year for next 4, 5 years minimum.

With the growth on the numbers, volume, and the sales prices, we'll see that the numbers of the percentage of EBITDA will also improve. If the top line is improving on the volume growth of the additional capacities and putting more downstream and all, we'll see the percentage of EBITDA will also improve with the revenue and all.

This is what we are focusing. When we are talking from the stainless steel point of view, we are seeing there will be a lot of penetration in the value addition and we'd see the margins going up.

We'll see a lot of penetration coming up from the doubling the cold rolling mill capacity, the numbers will change. Once you put up the larger capacity, your cost, your efficiency, and everything changes.

Aluminum backward integration will help us to hedge more on the raw material side. We'll be able to manufacture more varieties of aluminum product where we are not able to serve to our clients once we have our own internal manufacturing of foil stock.

These are all strategic, sustainable move from the organization side.

In addition to this, Rajesh Ji, I would also like to highlight certain things that sir is telling about the growth, volume growth, which will be around 15% to 20% year-on-year. Suppose if the realization will improve, definitely the margin will further increase.

That is only on the conservative side, the growth will be 15% to 20% as far as when we talk about basically on account of volume growth.

You're not taking cyclicality into account, you're just current market conditions and projecting the numbers accordingly. If there is a price.

We are always conservative. After 3 years, Rajesh, you can't tell us that whatever promises we have done in last 3 years on the growth side and all, when we did an IPO 3 and 1/2 year before with a top line of ₹6,000 crore and EBITDA of ₹600 crore, we are talking of this year more than 3x.

Internally we have to do a analysis and come to a true solution. It will not be fair on our part, but we are conservative.

We want to make sure that what we say, we deliver it. What we want to create is a world-class.

We cannot be after 3 years, we cannot be any company where we have to compare with any of the commodity player or any of the specialized. Shyam Metalics should be a company where we should be able to showcase a different level of value to the shareholders.

Right, sir. My second question is also related to your conservativeness in a way.

Your low leverage is actually leading to a kind of low return on equity for the shareholder because since you are a AA+ kind of borrower, the debt levels in a metal company are normally much higher that we see everywhere. If we are able to have a more balanced leverage structure in our balance sheet, then our ROEs can improve substantially because even at the peak, as per my calculations, our ROEs are still not crossing 13%, even if you take the entire capex into consideration.

Just a thought that maybe we can increase our dividend payouts, we can increase our debt leveraging a little bit in order to improve our ratios. Yeah.

This is also because of a very subdued market. Apart from that, you have to understand in spite of so much challenges, what we are seeing in this sector from last couple of years, we have been very perennial.

We are prudent, but we don't want to take any risk on any of the businesses where we see that we are not very comfortable. We are not actually stalling any of our vision due to the capital constraint or anything.

I know there is no capital constraint. We are prudent.

It is better if we are prudent and we are more conservative. This is a way.

Any of the steel company is not a debt-free. When we are talking any of the steel company AA+, we are not talking from today, but we are talking from 20 years.

There are a lot of things where we can improve our margins, which we are working on that by adding more value-added. I know it takes a lot of time for a new product, some emerging metals where we see the numbers are changing, where we're trying to add more value on that.

We want to definitely place the company at a unique position where leverage, yes, we have to be always the least or no leverage company, I would say. We have to try our best, but we have enough head in case we require, we get an opportunity, we will grab it.

We don't want to be extremely aggressive because your company is going at 15%, 20% CAGR, 25% CAGR from last 25 years. We are growing, and the way we are growing, we will be growing.

We want to be very extremely prudent on our thought, on our values. Yes, my capex is very low because we feel that we are very efficient.

That is also one of the strength of Shyam Metalics. We are adding a lot of new projects to curtail the cost, we increase the margins, we are increasing more and more efficiency in our existing businesses, we are trying to learn and learn more from the present tools available how to further enhance more exercise in bringing more value to the company.

Yes, once the market turns around, we see everything is fine, things will improve more further better. What you are seeing is the worst.

What the numbers you're seeing is the worst in today's time. I'm 100% sure with the time, it will further improve with the varieties of new businesses, new metal, new value addition, and the kind of varieties of product mix on the sustainable part what we are developing.

We'll see a lot of changes happening in the time to come.

Okay. Thanks, sir.

Thank you very much.

Yes. Hi, sir.

Thank you for the opportunity. Sir, a couple of questions.

Sir, on the coking coal bit, we've seen prices move up materially as compared to the last quarter. Any margin headwinds that we can expect from the same, although we've seen steel prices also move up?

Anything that we can expect in the next quarter?

Definitely, it is a very volatile coking coke and also we have our own coke oven plant. Your company, Shyam Metalics, is definitely going to gain over the price on the delta side from the coking coal conversion point of view.

Prices are looking little strong and firm for next quarter also, but it is too early for me to share because you never know how it turns around as well. Yes, overall, I'm extremely positive and we look forward we'll be able to play more decent in the time to come.

That helps, sir. Sir, and on the stainless steel bit, if you could help with the capacity commissioning timelines over the next year?

Also this quarter, we've seen the EBITDA per ton for the stainless move up materially. If you could comment on the sustainability part of the same?

See, what we did, we just acquired Mittal Corp 2 2 years before, and what we have done, we started a stainless steel wire, bright facility. We went forward integration.

We did a trial. We're expanding the capacity in that.

Definitely, on the long product side, the margins will improve day by day. A lot of new product innovation and development also is in the process.

Few has been okayed and few is under process. In the time to come, yes, once you ramp up your production on the long product side of the existing stainless steel, you go more value added, things become more decent.

From the new project which is coming up in Odisha, it's a huge project. We are talking of half a million, more than half a million flat roll product where world-class, where we have our own alloy, we have our own power, we have our own steel.

Now we expect that by end of next year, we should be able to commission the plant. There's a lot of downstream activities, a lot of value additions, Z-mill, D-line, a lot of value additions product we are lining up, so that in the time to come, we should be able to create a long-term supply chain value addition.

Got it, sir. Sir, and last question, on the steel bit, we're seeing the color-coated sheet move up basically double in capacities.

How is our expansion efforts going on in the parallel flange beams front?

I would say, on the flange beam side, it is little bit not very aggressive. I think we will be doing some kind of a modification on this action because there's a lot of challenges coming up.

Because we are trying to create a lot of product in our existing facility of the flat product, where we'll be doing a lot of fabrications and all also. I think it is too early for me to comment, but maybe next few weeks, we'll be able to discuss more in better.

Okay. Sure, that helps, sir.

Thank you, and wish you all the best.

Thank you.

It's 5:00, dear. I have my another meeting.

Deepak?

Hello?

Thank you, everyone, for joining us on call today. I hope the management was able to answer all your queries today.

I also like to thank the management for sparing the time and joining the call today. We are MUFG InTime, investor relation advisors to Shyam Metalics and Energy Limited.

For any queries, please feel free to reach out to us. Thank you, everyone.

Thank you. Thank you, everyone.

Thank you.