Thank you, Ranshu. Good afternoon, everyone.

On behalf of the entire management of Vardhman Special Steels Limited, I thank all the participants present on the call, and I wish you a very warm welcome to be present here for the Q3 and 9M FY '26 earnings conference call. To guide us through the results today, we have with us the senior management team of the company represented by Mr.

Sachit Jain, Chairman and Managing Director, Mr. Sanjeev Singla, Chief Financial Officer, Mr.

R.K. Rewari, Executive Director, and Ms.

Soumya Jain, Executive Director. Before we begin, please note that this conference may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on the date of this call.

These statements are not a guarantee of future performance and involve risks and uncertainties that are difficult to predict. We will commence the call with an opening speech by Mr.

Sachit Jain followed by the financial highlights by Mr. Sanjeev Singla.

After this, we will open the forum for the Q&A. With that, I now hand over the call to Mr.

Sachit, sir. Over to you, sir.

Thank you.

Amit, thank you. Ladies and gentlemen, a very good afternoon to you on behalf of my team and myself, and thank you for showing your continued interest in our company.

Last quarter has been very, very interesting. We've had good volumes, but price reduction has happened primarily because of lower prices of raw material.

However, the trend has changed in raw material prices, and raw material prices started rising in the last week of December and continue to do so in the beginning of January. The impact of this in terms of prices, some impact may come in the fourth quarter.

Otherwise, first quarter of next year, the impact of this cost increase will come in. Overall, availability of raw material continues to be fine.

Demand continues to be strong. The other significant events have been is that we have renewed the third technical assistance agreement with Aichi for the next 3 years.

As well as we have announced our forging project. We had earlier indicated we will decide by January.

As things happened, we had a special board meeting in the month of December and we announced our forging project. Now, a little bit about Aichi's forging abilities.

Aichi, as is a Toyota Group company, which is very strong in special steels and automotive steels. As well as they're also very strong in forgings.

Almost their entire production, and they're the largest forging company in Japan, and almost their entire production is consumed totally by Toyota Group. Partly Toyota and partly by Toyota Group companies.

All the Toyota manufacturing systems, all the production systems, all those capabilities are part of their skill set, and those capabilities are going to be transferred to the new plant as we are putting it up. The target date of commissioning of this plant is going to be July of '20 '28, 1 year before our new steel plant.

The forging business will start production before the new steel plant. The investment proposed is ₹475 crores, which includes land and buildings.

Some extra buildings will be made. Most of this capex would also take care of the second line, which will come in.

Second line of forging, which will come in, will take lesser investment than this one. As far as Vardhman Steel is concerned itself, the reheating furnace capex is in progress.

It is likely to get commissioned by March, and we should get the full benefits of it from mid-April onwards. Let's say May onwards, we'll get the full benefits of the new reheating furnace.

Two benefits that we are expecting from this is, one, a large part of our job work outsourcing will go away and will come in-house. Second, we will be able to improve our yield, and therefore, that will add to the bottom line.

Third, we will also improve our servicing to the market, and which will lead to inventory reductions as we go along. Of course, the entire job work will not go away.

Some job work happens because of our bigger size billet, which we don't have the rolling capability, and some job work happens for our bright bars. Really the profit that we are passing to our vendors and the transportation costs to our vendor for job work, that and our relative better efficiencies, that is going to be additions to the bottom line.

Not the entire job work item if you're expecting that kind of increase happening. It will be part of that job work, which is going to be the increase.

As regards the greenfield steel plant, land purchase, we are at the final stretch now. We should be able to complete the purchase of land, all goes well, in this quarter.

Discussions with machinery suppliers are going on full swing. We hope to come out with a very robust plan, and we are sticking with our date of July '29 for the commissioning of the new steel plant.

The new steel plant is expected to have a capacity of about 500,000 tonnes. We believe we'll be able to produce more from it than the stated capacity of 500,000 tonnes.

As of now, it's too premature to say what we think we can produce from here, but definitely more than 500,000 tonnes. The second, with the new plant coming in, we're going to add to our product mix portfolio.

Currently, we are restricted to smaller sizes and medium sizes. For larger sizes, which is 90 and above, which is required for some crankshaft materials and for some specialized gears and for products required for commercial vehicles and off-highway vehicles, we don't have those capabilities.

In the new plant, we will have those capabilities. In addition, as of now, we have almost 100% automotive steel business.

We don't have the technical facilities to produce non-automotive steels. Some of you who've read my annual reports, letter to the shareholders in my annual reports of 2016-'17, I have been expressing my desire to get into other specialized steels apart from auto steel.

With the new plant, we will have those technical capabilities into the machinery park, which will enable us to get into those areas. Just for your attention, the non-automotive space is a very vast space, and I'm not saying we get into all these spaces, but just to give you an idea what it covers: bearings, railways, defense, aerospace, tool and die steels, oil and gas.

A few others: the turbines and the shafts for shipping, shafts for windmills. There are massive areas which are non-automotive.

In fact, globally, the non-automotive steel segment is 60% of special steel. In India, it's lower.

In Vardhman, it's close to 0. In the next 10 years, we expect to have a reasonable non-automotive steel portfolio, too.

This will entail, of course, a lot more thinking, and we'll be ready for some announcements maybe in a year, year and a half's time. Just now, the focus is optimizing the current steel plant to take it up to 300,000 tonnes of billet making and 270,000 tonnes of finished product.

The second is the new forging plant, and third is the project implementation of the new steel plant. As I said, simultaneously start looking for avenues to create technical capabilities in terms of machinery park to be able to make the non-automotive steels.

As regards the solar plant, we are again in the final stretch now. As we had shared earlier, the plant has been ready since June.

The connectivity to the substation was a problem as some farmers had gone to court in between. All those cases have been resolved, and the connection, the last tower has also been put.

The stringing has been done. In the next week, 10 days, everything going well, we should have solar power coming in, which will reduce our carbon footprint from 0.73 to 0.48, as well as lead to cost savings on account of the solar power, which is going to be cheaper than our existing power.

Anyway, that's a very long update from my side, one of my longest, and I'll leave it to Singla, our CFO, to take you through some numbers, and then we're open to Q&A.

Thank you, sir. Good afternoon, ladies and gentlemen.

Happy New Year. This is first call in 2026.

On financials, for the quarter 3, Y-on-Y basis, we have achieved 55,000 tonnes of sales as against 52,600 tonnes if we compare with rolled versus rolled, leaving aside the billet part. On terms of revenue, it is ₹430 crores as against ₹426 crores, a marginal increase only, because, as Sachit sir has explained, that it has been mitigated by a decline in prices.

EBITDA for the quarter is ₹56 crores as against ₹42 crores in the corresponding quarter of last year, registering an increase of 34%. This EBITDA per tonne is ₹10,200 per metric tonne.

In this quarter and the previous quarter, in other income, normally we are having the income from electricity duty exemption and GST refund from the state government, which is operational income. This quarter, we have interest income received on unutilized funds which were invested by Aichi.

Secondly, the interest accrued income which has been booked by us on the advance deposit given to the PSPCL, Punjab State Power Corporation. These two incomes if we exclude, then our EBITDA per tonne is ₹9,263 for the quarter.

Similarly, for the 9 months ended, the EBITDA excluding these incomes is ₹8,600 per tonne. As a result, for the 9 months, our total PAT is ₹88 crores as against ₹73 crores in the corresponding 9 months of the last year.

This is the ever-highest PAT, ₹88 crores for the 9 months. Hopefully, after completing this fourth quarter, we will be registering ever-highest profit for the full year also.

That's all on the performance. Now I request for the question-answer session.

Good afternoon, sir. Am I audible?

Yes, you are.

Thank you for the opportunity, sir. Congratulations for good set of numbers.

Sir, the ₹475 crore forging and machining capex, can you just explain the expected peak revenue potential, EBITDA margin, and ROCE from this facility?

Those details will come in, but once both the lines are established, we should be able to get a decent return on capital employed.

Sir, a second question what would be sustainable EBITDA per tonne that investors should model excluding the nonoperational income?

We have said that for this year it was ₹7 to ₹10, and from next year ₹8 to ₹11.

This year ₹7 to ₹10, next year ₹8 to ₹11,000 per tonne.

Correct.

Yeah. I'll join back

the

₹8,000 to ₹11,000. Thank you, sir.

I'll join back the queue. I have more questions.

Thank you.

Yes. Hello?

Yes. Yeah.

I just wanted to ask, with all of the capex that we are doing, and so how do we see our revenue growth in the next 3 to 4 years? Also on the EBITDA front, what margins do we see going forward and what will be the sustainable margins in, say, once all the capacity is commissioned?

The sustainable margin as of now will remain at ₹8,000 to ₹11,000 a tonne. Aspirationally, we have said we'd like to target ₹12,000, but we're not ready to reach that level as of now.

Once the capacities are fully commissioned, we will have about 9 about 8 lakh tonnes roughly of steel production, which will mean about 720,000 tonnes of 720,000 tonnes of finished steel. This year, we are targeting about 2 lakh 215,000 tonnes.

We will go up more than 3x from the current level as far as steel production and sales is concerned. In addition, there would be a forging business coming in.

Now, when we say the new steel plant is getting commissioned in July '29, it will take a few years to reach full capacity utilization unless the government's policies on green steel kick in, which is on the anvil, but it is very difficult to predict when it'll kick in. Moment they kick in, then, of course, there'll be a very big pull for our material.

Okay. Understood.

Thank you.

In the next 3 years, we should reach our full potential of 270,000 tonnes before the new steel plant comes in. From 215 this year, in the next 3 years, we will reach a 270, 275,000 tonnes.

225 this year.

Sorry, 225 this year. My my Pardon me.

Before that, just a clarification. Again, if some of you are new out here, we always give our sales in tonnage, not in rupees, because pricing is in the hands of what is the raw material movement.

If prices go up, the sales will go up. If prices come down, the turnover will come down.

Volumes is in our control, and this is why we don't look at EBITDA margin as a percentage. We look at EBITDA per tonne.

Just for a clarification why we are speaking here per tonne, and otherwise, what is reported, of course, is rupees. I hope that clarifies our thinking.

Yeah. Go ahead, Amit, for your next question.

Yeah. Thank you for the follow-up, sir.

Sir, which export geographies are likely to contribute meaningfully?

Export, as we've shared earlier, for us, our direct exports, the biggest market is Thailand. A little bit exports go to Philippines, a little bit Indonesia, a little bit Malaysia, those are tiny bits.

Thailand is 70% of our total exports, more than 70% of our total exports.

Okay.

As far as indirect exports go, which is our steel, which is getting converted into components at the hands of our customers, exports are going primarily to US and Europe. Some partly even to Mexico because ultimately again, going to the US.

That is from our customers like Sona Comstar, GNA Axles, and others. Just to give you an idea of that.

Sir, as far as automotive special steel is concerned, I think so we are the number one player in India.

I'm sorry. Repeat that.

As per green steel?

As far as special steel for automotive segment is concerned, I think so we are number one in India?

No, we are not. Sizewise, JSW would be bigger.

In fact, we are amongst the smallest players.

From the market share point of view?

OEM-wise. OEM-wise, I would still say, we would consider ourselves number two players in terms of width of OEs.

I would consider ourselves the second best player. Too presumptuous to call ourselves the best.

Our target, of course, is after the new plant is commissioned, then we should rightfully in a few years' time become the number one special steel player in India. Again, just now we're talking only automotive steel.

Sir, I think so I also heard you are thinking about non-automotive steel as well. What could be the size of that?

In the next 10 years, I've just put a number out here because you're not even there in that business, but in the next 10 years, we expect to be about 30% of our business. Just as a rough guidance, I would say.

Please take it as a just a very rough guidance. That's what we would like it to be.

It will take some time because just now we don't have the machinery to make it, right? The knowledge is there.

The technical knowledge is there. Aichi, our partners, have the know-how.

We have the knowledge. Our own technical people have the knowledge.

We just don't have the equipment to make those kind of products. The capex required for some of those products is not as much, and for some, the capex required is higher, but again, nowhere near the terms of these large capex amounts of ₹2,000 crores.

Once we do this ₹2,000 crore capex, our incremental capex is never going to be in that kind of sizes. Sir, if I can ask one more question?

"Never" is a strong word, but unlikely to be in that kind of sizes, yeah. Sorry, go ahead.

Yeah. Can I ask one more question?

Can you just get back to the queue? If there's nobody else, you can come back.

Yes, sir. Yeah.

Thank you.

Thank you so much for the opportunity. I wanted to ask, is the reheating furnace project on the track for Q4 FY '26 commissioning, and what are the expected fuel and yield benefits from it?

It's on track in Q4. We are taking a shutdown end of February.

It may spill over into March. And 1 month or so of stabilization, which is why I said in the second half of April onwards, we should get full benefit of the reheating furnace.

We have not shared the benefits of the reheating furnace, but I'll give you an idea and you can do your own calculations. Currently, our billet size is 4.2 m, and you take some end from both sides that are cut as waste, which goes into scrap and we reuse that scrap.

That billet size is going to go up from 4.2 to 5.2 m. That's where the yield benefit is going to come in.

Also, the yield benefit partly will come in in our continuous casting machine because of longer-sized billets and again cuts the burning loss when you cut the billets. In addition to this, because of the quality of the reheating furnace, the kind of reheating furnace, the quality of our product is likely to improve, which should reduce our rework and rejections.

Now, we don't have any number in mind as to how much will it reduce. It will definitely improve the quality and hence we expect the rejections and rework should come down.

Those are the two two improvements, and it is on the back of projects like this that we have raised the guidance of EBITDA from by 1,000. From 8 to from 7 to 9, we've raised the guidance to 8 to 11.

It's on the back of these kind of projects.

Sir. Thank you.

I got it. I also wanted to ask, the kocks block operation has been operational for a whole quarter now.

I wanted to ask what improvements are visible in the [unclear]

realize it? Yeah.

Very clearly, we are getting all the benefits that we had envisaged. The first benefit is the roundness of the bars is better, which enables a superior quality and especially some of the products that we're targeting as import substitution from Japanese steels.

Now, those products will be better served because of this better roundness. Second, we can give exact diameters.

Whatever the customer wants. Normally, today our rolling mill, you have 42, 45, 48.

If somebody needs 47.3, he has to take 48 and 0.7 is wasted, and their yields go down. Now we can give exact to the 0.1.

That's the second advantage. The third advantage is the changeover of size time goes down, which increases our flexibility to give better service to customers.

You will see the impact of that in working capital reduction in the future. Within the next financial year, within the first half, you will see the finished goods stocks coming down.

Yeah. Namaskar, sir, and thank you for the opportunity.

Hope I'm audible, sir.

Absolutely. Go ahead,

Saket. Thank you, sir.

Go ahead. Yeah.

Sir, firstly, if you could just explain once again the metrics as currently our melting shop is 3 lakh, and this will go up to 5 lakh in 2 years'

yeah. No, this capacity will remain at 3 lakhs.

We have applied to the government to increase our license to the environment ministry. If we get that license, then the capacity we believe can go up in a year's time.

We have to make some more capex for that. As of now, please take 3 lakhs as our capacity.

Rolling mill, today our capacity is 210,000 tonnes. Hanji.

This will go up to 270,000 tonnes from April. Moment the reheating furnace is commissioned, then our capacity will go up to 270,000 tonnes.

Then we will not have the capacity constraint except for the bigger billets, which is 240 by 260, which our rolling mill does not have the capability to roll those products. These have to go outside for rolling or a double rolling process.

Okay. In the new plant, we will not have these limitations.

300,000 tonnes and 270,000 tonnes. The 500,000 tonnes you're talking about is the new plant.

The 500,000 tonnes is the new plant, and the new plant will come up by July '29.

Sir. Because, I think so, in the earlier capex, fine, sir.

In the April announcement, the new billet production capacity of 5 lakh was also announced, I think so, in the April. Correct.

April, yeah. Correct.

In the new plant.

Yeah. It was announced in April, correct.

I'm referring to the same announcement that 5 lakh tonnes, which is the billet capacity, will come up by July '29.

Okay.

In addition to the current 3 lakhs.

Current thing. Okay.

Okay.

It's a new plant.

Right. Sir, just to have a one more basic understanding.

Our end product which we are selling to our customer is the bright bars and माने how do we level that

product? Black bars and bright bars.

Black bars, we call it hot-rolled bars. Okay.

Our rolled capacity, as I said, is roughly little over 270,000 tonnes. Then because some part goes into bright bar, our bright bar capacity is about 50,000 tonnes.

Okay. Sir, in terms of the

tonnages The

capacity goes down. Please.

Goes down?

Go ahead. No, the capacity goes down if the diameter of the material coming in becomes smaller.

If the trend is towards smaller diameter as currently we see that, then the capacity of 50,000 tonnes goes down to about 40,000 tonnes. It varies between that, depending on the product mix.

Okay. Sir, the tonnages which we have done for the 9 months, माने we are now averaging in this 55,000 per ton per quarter.

This will be how we will be exiting the fourth quarter also in terms of the deliverable schedule?

Around the same figures. As I said, our target is 225,000 tonnes for this year, and we hope to make that target.

Okay. Sir, how has this tariff part has impacted your customer?

You did mention name of GNA Axles and all. They have been exporting to the US.

Have there any off-take

and Yeah. No, there was a reduction in off-take earlier, but there seems to be covering up now.

Slowly covering up. Which is why we are able to sell what we are able to sell.

Our sales haven't gone down. We are on track with our budget.

Sir. I'll join the queue, sir.

If at all, if we had capacity, we could have sold another 5,000 tonnes at least.

Okay.

In the full year, not for this quarter.

Not for the quarter. Okay.

This 225 would have gone to 2 230.

Yep, that's right.

Okay. Sir, I'll join the queue, sir, again.

Thank you.

Yeah. Thank you for the follow-up once again, sir.

Sir, amongst forging, wire rods, and non-automotive segments, which vertical is expected to scale up fastest over the next 3 years or 5 years?

Forging is coming up in the next 1 and 1/2 in the next 2 years. Forging will come up.

It's the wire rods and other areas where we are still studying which segments to get into. We will decide in a year's time roughly as to which segment to enter.

That's a further off. The first thing to happen will be the forging plant.

The next thing will be probably the new steel plant, and next would be the foray into non-automotive.

Sir, are there any low-margin Hello?

Go ahead.

Yeah. Sir, are there any low-margin product lines that the management is considering deprioritizing over time or exiting?

Not really, because we are going to be tripling our sales. When you're tripling your sales, you don't look at exiting any segment.

Thank you, sir. Thank you for answering all my questions, sir.

All the best for the future. That's it from my side.

Thank you.

Thank you.

Hello, sir. Am I audible?

Yes, Janak. Go ahead.

Sir, in your opening remark, you have mentioned that Aichi Forging is the largest forging company, and all production is generally consumed by the Toyota Group companies only. When we come up with a forging plant in India, will we follow the similar pattern, or we'll sell it to other customers as well?

No. We are very clear.

We are serving the Indian market. Indian market, we will serve all

So Toyota and Maruti, or everyone else?

Everybody. Primarily in the car segment.

That is the first line which is coming is going in the car segment. Tata, Mahindra.

Again, maybe they are served through a Toyota Group company. That's also possible.

Then customers like Sona Comstar, all those are part of our target segment.

Sir, can you give any idea about the forging components which we will be making here?

We are still finalizing all that. In the next 6 months, we'll give you more idea.

Sir. That's all from my side.

Thank you. Yeah.

Hello. Good afternoon, sir.

Thank you for the opportunity. Just building on to the product mix that was discussed sometime earlier, if you could shed some more light on how you see the split in revenue between bright bars and special alloy grades for the next couple of years, FY '27 and '28, and if you have any ideal mix in mind, which would be best in terms of our margin profile?

Bright bar is also the same alloys because, basically, it is all going into the car segment primarily. Bright bar is basically where a customer using cold forging technique.

When they use cold forging, then they need 0 surface quality defects. You do a turning operation before you supply to the customer.

You just remove the 1 from the surface. It's just a small value addition to the existing black bars.

That's not really a different product.

About the special alloy grades, sir?

No. All our products are special steel.

We're not making any commodity steel.

Okay. Then we are not looking at the special alloys as a separate product segment.

No. What you're talking about is the high alloys: high nickel, high moly, and titanium based.

Those are all what we discuss is a non-automotive process, which will come through the ingot casting route and which will then go into either tool and die steels, aerospace, defense, all those other sectors. Where we don't have the machinery you need it's not very difficult.

It's ingot casting route that you have to put in. It's a process that almost all metallurgists know.

Even our organization used to have ingot casting 20 years ago. At that time, continuous casting was seen as an upgrade from ingot casting, and we are now going back to ingot casting because for those very high alloys, you cannot cast them through a continuous casting machine.

Ingot route is the route to make those kind of products. Then for certain absolutely super critical alloys which go into aerospace, then you require further processing of those either a billet or bloom that we make or an ingot and do a further processing, which is called remelting.

You have electroslag remelting, vacuum arc remelting, or vacuum induction melting. Those are all special processes which are required where the lot sizes are very small and very, very high value alloys and so on.

It's an totally approval-based business.

Okay.

That business is what we are examining whether we can get into those businesses. All that is part of the commoditized or easier non-automotive steels, we might start a bit sooner.

The product that I just described, those kind of products, we are targeting for 2030 or '32. It's 5, 7, it's about 6 6 years away, 6, 7 years away from now.

Got it.

I'm just giving you a futuristic idea. As far as for the purposes of the stock market, for analysts, and to do the valuation models, please don't consider those things.

Those are further out of your horizon, time horizon.

Got it, sir. Fair enough.

That is what I was looking for. Sir, you spoke a bit about green steel also.

Are there in terms of tangible impact of getting into green steel, the initiatives, are there any commercial advantages or in terms of getting preference in terms of getting orders? Do we see that sort of advantage?

Yes. One, there are no commercial advantages as of now.

Getting preferential access and so on and getting attention from customers, that has clearly begun. More from the European customers.

Which means either a European OE or a Indian Tier 1 or Tier 2 exporting to Europe. When we talk to customers, there is a lot of excitement.

Even our largest customer, largest car company in India, Maruti Suzuki, has started discussing this more seriously. Other OEs have also started, car OEs particularly, started discussing this.

Far, they are not implementing anything. I have seen one thing: once discussion starts, the implementation is just a question of time.

It could be a year or two. It could be 3 years.

It could be 5 years. I don't know.

If you ask me, my wish is it doesn't happen before 3 years, because if it happens, we don't have the capacity. Ideally, it should happen 4 years from now, when the new plant is set up.

It stabilizes, and then when the demand comes, we are ready to serve the market.

Cater to that. Fair enough, sir.

Sir, it would be fair to say that it's not going to translate into a big difference in terms of premium pricing, but more of a goodwill and a sort of a flagship connotation to it for having being one of the green steel suppliers. Would that be accurate, sir?

As of now, yes. If you ask me, my personal belief, though I will never put that into our forecast and so on because it's all still in the air, my personal belief is moment the government of India makes that into mandatory that everyone has to have a minimum percentage of this thing, it will lead to commercial gains also.

Fair enough.

When will it happen? 3 years from now, 2 years from now, 5 years from now, 10 years from now, I can't say.

It depends on government of India policy. The fact is this is on the government's agenda, and it is likely to get implemented at some stage.

As I said, ideally 4 years from now. Who knows when it gets implemented.

Fair enough, sir. Understandable.

Thank you for that insight. Just one last question, sir.

This is why we have not included this into any of our forecasts.

Sir. Fair enough, sir.

That's well appreciated, sir. Sir, just one last if you can spare a minute.

I missed the early parts of your opening remarks. You may have mentioned this, but for our sake, if you could just shed a little more light on the ongoing capex in terms of our new melting shop facility, the status of the modernization projects, and related how the progress is going on that front, sir?

Everything is on track in terms of previously announced capex plan. There is no new capex plan.

It is the implementation of the early announced capex plan. The furnace is already ready, which is the electric arc for the steelmaking process is ready to produce 300,000 tonnes.

Today, we don't have the facility to roll it. Now with the reheating furnace getting commissioned, we will have the capability to even roll the material.

Then the next bottleneck comes in in terms of nondestructive testing line. That constraint will get broken by June or July.

Then even we can produce as much of the high-quality material which needs to be tested on the nondestructive testing line.

Got it, sir. We

More and more customers are asking for that, and we will have the capacity by June or July latest of '26.

Up and running by June or July, sir.

Yes.

Got it. All right, sir.

Okay. Thanks a lot.

That is not a constraint in terms of more production and sales. It is just that it restricts by a small amount a little bit of product mix, which will get released by that time.

Fair enough. Understood, sir.

Thank you so much, and all the very best.

Thank you.

just a small clarification. You just spoke about June and July, what will be the new product introduction that you attended to?

No. There's a testing line, nondestructive testing line.

For very high-end users, they need all material to go through nondestructive testing line.

Okay. That is more about the product validation.

Yes, absolutely.

Okay. That will only change the product mix, that is what you have alluded to.

That is what the target is also.

Marginally. By 1,000 tonnes a month kind of a thing.

It's a very small impact. Those will be higher-margin product.

Sorry?

Not necessarily. They are more sophisticated products, but depends on pricing and competition in every product.

Sometimes very highly sophisticated products are low-margin products, and sometimes simpler products are higher-margin products.

Correct.

Right, sir. If I have anything, I will ask the IR team for getting me in touch later on, sir.

Thank you for the elaborate discussion, sir, with the help and hope for continuity of the same. Thank you, sir.

Thank you so much.

Okay. Singla has passed the baton back to me.

This is Sachit Jain here. Ladies and gentlemen, thank you so much for being here.

Really next year I'm looking forward to next year because this year has been a year of many, many constraints, and those constraints will be over and we can start operating freely from next year. This will be a very big advantage.

Then our focus on the two projects, both Mr. Rewari and Soumya are fully involved in those projects.

That's a very, very exciting time for our company. Thank you very much, and keep on the lookout.

One more thing interestingly, yes, of course. I forgot to mention.

We are having full support from both our major shareholders: Aichi Steel, which has increased their stake to 24.9% and have expressed their willingness to invest more money as and when required; also Vardhman Group has expressed their willingness to add to the capital whenever we need capital to raise for the new projects. Anyway, thank you so much, ladies and gentlemen.