Thanks. Welcome all the participants for on behalf of 361 Capital Market for RK Forgings 4Q FY '26 and FY '26 Post Earnings Conference Call.

From the management, we have with us today Mr. Naresh Jalan, Managing Director; Mr.

Chaitanya Jalan, Whole-time Director; Mr. Lalit Khetan, Whole-time Director and CFO; Mr.

Milesh Gandhi, Whole-time Director; and Mr. Rajesh Mundra, Vice President, Finance and Company Secretary.

I'll now hand over the call to the management for opening remarks to be followed by the question-and-answer session. Over to you, sir.

Thank you. Thank you, Jayaraj.

Good evening, everyone, and thank you for joining us on this call to discuss the Q4 FY '26 earnings. I trust all of you have had a chance to review the earnings document that we have shared with you.

In Q4 FY '26, the global macroeconomic environment turned incrementally more challenging, although conditions continue to vary significantly across regions and sectors. While the quarter commenced on a relatively stable footing, carrying forward momentum from the prior period, the outbreak of conflict in Middle East adversely impacted operating conditions towards the later part of the quarter.

As a result, energy price volatility, persistent inflationary pressures, and renewed supply chain disruptions created uncertainty for a for a certain business environment. In contrast, the domestic macroeconomic environment remains relatively favorable.

India continued to stand out as one of the fastest-growing major economies, supported by resilient consumption, sustained government capex, infrastructure activity, and improving manufacturing momentum. Against this backdrop, we are pleased to report a improved performance in the fourth quarter, enabling us to end FY '26 on a strong note.

Volumes in domestic market have been strong. Following the GST rate rationalization in September, there has been sustained momentum in domestic auto industry in India.

This resulted in sustained momentum in wholesale volumes with all segments such as MSCV, tractors, PVs reporting double-digit growth in the fourth quarter. As we had indicated, the railway business has been a strong pillar of growth.

We have taken steps to deepen our footprint and enhance capabilities in this segment in recent years. These are now paying dividends, and the share of business from railways has grown to 7.5% of revenue in this year against 4 4.6% a year ago.

Now let me share some financial highlights for the quarter. We reported consolidated revenues of ₹1,216.78 crore that is higher by 28% on year-on-year basis compared to ₹947.21 crore in Q4 FY '25.

On a quarter-on-quarter basis, revenue were higher by 11% compared to ₹1,098.52 crore in Q3 FY '26. Strong performance in domestic market, supported by resilient performance in international market help helped us to deliver solid top-line growth on a year-on-year basis as well as on Q-on-Q basis.

EBITDA, excluding other income, is ₹208.19 crore in Q4, higher by 111% year-on-year compared to EBITDA of ₹98.5 crore in Q4 FY '25. On Q-on-Q basis, EBITDA was higher by 27% compared to ₹163.37 crore in Q3 FY '26.

The margin improvement to the margin improved to 17.1%, higher by almost 220 basis points quarter-on-quarter. Profit before tax is ₹64.33 crore in Q4 FY '26 compared to ₹29.69 crore in Q3 FY '26, reflecting a 117% quarter-on-quarter growth.

Profit in the consolidated reven accounts has been impacted by around ₹10.4 crore due to elimination of profit of ₹5.9 crore from the subsidiaries and loss of ₹4.5 crore from the Mexico subsidiaries. Otherwise, the net profit could have been much higher on the consolidated basis.

On the full-year numbers, we reported consolidated revenue of ₹4,238 crore for the full-year FY '26 that is higher by 5% on year-on-year basis compared to ₹4,034 crore in FY '25. EBITDA stood at ₹642.70 crore for FY '26 that is higher by 15% year-on-year compared to ₹559.56 crore in FY '25.

Profit before tax is ₹112.58 crore in FY '26 compared to ₹148.79 crore, excluding exceptional item, in FY '25 that is lower by 24% year-on-year. Additionally, our rail wheel joint venture remains on track with commercial production anticipated by Q1 FY '27.

With these growth levers firmly in place, we are confident that from the next quarter onwards, we will return to further improved operating trajectory and look to sustain the momentum throughout FY '27. With that, I would like to hand over the proceeding to Mr.

Milesh Gandhi, Whole-time Director. Thank you.

Over to Milesh.

Thank you. During the Q4, the company secured new orders worth ₹594 crores for the program life of 4 years.

56% of these orders were from automotive segment and balance 44% were from the non-automotive segment, reflecting continued progress in company's diversification strategy. Out of the ₹594 crores, ₹334 crores came in the auto sector, of this ₹323 crores came from the CV sector and ₹11 crores came from the PV sector.

In the non-auto sector, 500 ₹258 crores came from the energy segment itself and ₹2 crores from the off-highway. That's from my side.

Thank you.

Thank you, Milesh. It's over to Jayaraj.

Operator, you can go for Q&A.

Before somebody joins in the question queue, sir, how is the demand shaping in US market, sir? Hello?

Hello?

Am I audible, sir?

Yes.

Okay. No, I was asking how is Class 8 volumes picking up in the recent times?

I think Class 8 trucks are very, very strong right now. I think since last 3 months, we are seeing de-stocking happening in our warehouses in North America.

I think we are looking at fresh revenues coming in from this quarter onwards from North America Class 8 trucks in significant manner.

We expect this to sustain for some time, sir? At least a year or two?

I think at least for 2 years. Calendar year it is good to say that it's going to stay till third quarter of calendar year '27.

Okay. We will go to the question queue, sir.

Good evening, sir. Thank you so much for the opportunity.

Sir, on that wheel set plant mentioned it will be commencing from Q1 FY '27 onwards. Whether we have submitted 300 trial wheels for the approval?

From Q1 onwards, what kind of run rate we can expect quarter-on-quarter basis in terms of volume?

No, I think 300 wheels we are supposed to submit in the month of June or July. I think when that is said we are going to commence production, it means we are starting the plant I think probably by end of May or June wherein we'll start manufacturing wheels and commercial production will start immediately.

So 300 wheels we have we don't need to wait for 300 wheels to get approved. Once the 300 wheels are supplied, we can continue supply.

This year, we are looking at supplying almost 40,000 wheels from that plant to Indian Railways.

This will start from the coming financial year onwards, right, sir? The 40,000 wheels will be reflect FY '27 onwards?

FY '27 onwards.

Sir. What kind of utilization level we can expect, sir, out of 2 lakh?

The 40,000 will be delivered in this financial itself, right?

40,000 will be delivered in this financial year.

I think then it will solve the whole industry problem. It's the right way to understand, sir?

I don't know about the industry problem. I think as per our contractual obligation, we are supposed to supply 40,000 wheels.

We are gearing up to supplying 40,000 wheels in this year.

Sir. Sir, on the diversification side, I think we are targeting 10% plus kind of revenue from PV in the next 2 years.

Also trying to be a primary supplier for EV, CV makers and aerospace alloys trials also began. Trying to understand what kind of specific defense or aerospace contracts we are focusing on and what kind of contracts we are focusing to bid post aluminum forging commissioning side?

No, already I think post commissioning of aluminum forging, we have already started bulk supplies to EV suppliers equipment manufacturers globally in terms of the needs of aluminum forgings, and we are also developing few more aluminum forgings from that facility to supply to this EV manufacturers globally. In terms of other alloys, we are looking at getting into aerospace.

We have already set up a capacity to manufacture titanium and other stainless steel products. We are bidding for several opportunities within domestic market as well as global market for right now, we don't have any contract per se to basically have any realistic numbers to this.

Yes, we have already set up a facility. We are already in talks with several OEMs globally and within India to buy higher alloy material basically for aerospace activity.

Yes, sir. On the capacity utilization side, the forging utilization, it is mentioned nearly 70% in Q4.

If you look at last year Q4, it's 83%. If you look at cold forging, the capacity utilization is almost 40% range.

If you could share how we are going to ramp up to 80% to 85% range by FY '27?

No, I think the vis-a-vis last year when you compare, you have to also take in account the capacity of 8,000-ton press and other addition in terms of overall forging capacity which we have had. Basically, this capacity utilization is going to happen with firm order book already in place.

We are very hopeful that this year we will have a much better utilization vis-a-vis the last quarters. In terms of cold forging, we are at 40% because approvals in cold forging is mainly to the passenger vehicle sector.

This is taking more time in the global market to get approvals in place. As and when approval gets in place, we are utilization will improve.

To be putting a timeline to it, I think we are not able to do that. We are pretty hopeful by this year-end we should be having close to 75% to 80% utilization from cold forging also.

Got it, sir. Thank you so much for the detailed explanations.

All the best.

Hi. Thank you for the opportunity, and congratulations on a good set of numbers, sir.

Sir, my first question is on the presentation that you have shared. It has been showcased that ₹1,550 crores of new orders will be executed in FY '27.

Does that include castings also, or is it only forging standalone business that it is showing?

No, it is consolidated forging and casting together.

Okay. How much of that castings volume are we expecting this year?

Because we'll be sitting on significant capacities of 78,000 tons. Earlier also we have indicated that we have a order book for that.

How much are we expecting this year?

We are looking at almost 85% to 90% utilization in casting over the quarters in coming quarters in this year.

80% to 90%. Close to around, I would say, 65,000 65,000-70,000.

Close to full utilization, I think. Very safe to say we are looking at close to full utilization this year.

Okay. That's great to hear.

That's basically around, if I take that number, then that's basically around incremental ₹900 crores of revenue from castings.

I will not put a number to it, but we are safely looking at almost 85%

to 90%

utilization in the full year basis.

Because I got to hear. In

first quarter it may not come in the first quarter itself, but gradually over next two quarters because samples, approvals, and other things are taking some time. We are looking at by first half almost to reach there.

Sure. I came to that number because of the realizations that has been shared on the presentation.

I came to that number on that basis. What kind of margins can we expect here, sir?

For margin for casting?

Yes.

Casting is I think Lalit, I think you will be able to tell better, Lalit.

Margins in the casting will be somewhere around 15% to 16%, Aditya. In terms of what you are asking in terms of top-line growth, 62,000 tons is the capacity, and we have already produced 26 for the last year.

That's the production. In terms of sales, sales is always lower due to the machining mix.

We expect another ₹400 to ₹500 crore of revenue for the full year from the casting business. On that

basis. Okay.

Okay. That's pretty clear.

On the cash flows part, what kind of capex are we looking at this year? What is the net debt target for FY '27?

Because I feel most of the investments have been done now, and with good business going ahead, good business outlook going ahead, we should be looking at debt reduction, if you can help us understand that.

Certainly, we are looking at quite significant debt reduction in this year on the back of promoter funding and that's and good performance. All these, we are looking to reduce the debt by at least ₹400 to ₹500 crore in this year.

Okay. One bookkeeping question, sir.

As mentioned in the presentation, there is some casting business sitting in the standalone business and some sitting in the and other part sitting in the consol part, the subsidiary. Out of the 16,600 tons that we have sold this year, how much of that would be in the standalone, if you can help me with that number?

Standalone business commenced just on 31st March, commercial production. Nil from the standalone on FY '26,

okay? Okay.

Got it. Just one last question, sir.

This is on the other business. We also started one trailer axle business a few years back.

If you can help us give us some update what kind of revenues have we clocked from that trailer axle business in FY '26 and what's the progression there and what kind of market share and target we are looking for in FY '27?

I think trailer axle, we roughly had around ₹120 crores business from there in last year. Roughly, exact figures I don't have right now.

We

at a market share, I think we are at about 4% or 5% market share in 2 years. We have been able to make good amount of inroads and satisfaction amount.

This being a first B2C business for us, I think we are pretty satisfied with the performance of getting into around 4% to 5% market share.

I think

this year we are looking at almost doubling this business to ₹250 crores and to a market share of about 10%.

Market share of 10%. Sir.

Okay. Thank you.

Yes. Hi, sir.

Thank you for taking my question. My first question was regarding the presentation.

In this quarter's presentation, the orders that are split over the next 4 years for financial year '27 is 2,000 for this is ₹1,550 crores. In the last presentation, it was ₹2,200 crores.

There is a ₹600 crore reduction. Has any of the orders been revoked or something?

No. Ayush, how it works, it was incremental order.

Last presentation what you shoot for, that was incremental order for FY '26, which has gone. Residual order has come here in FY '27.

Okay. Basically the order was executed early than expected.

No, Ayush. See, what you are looking at FY '28, again it is ₹2,800 crore, but the 1300 ₹1,100 crore incremental over FY '27.

You understand that?

There was

an execution every year. I hope you understand that.

Okay. Got it, sir.

With the new added capacity in the press segment, how do we expect the utilization to improve going forward, quarter-on-quarter, what percentage can we expect?

On a full-year basis, I think it is not right for us to say quarter-on-quarter. It's very difficult because of the approvals and other things.

It is

safe for us and better for us to say that by this year-end, this financial year-end, FY '27, we are looking at almost 85% utilization in our press plant.

That's great. One last question I had.

With the rising commodity prices, what effect does it has on a P&L? When we book an order, we take an order on the spot price, right?

No, I think it's basically for As earlier also expressed, all our pricing is based on pass-ons.

I think

with a quarter lag, we pass on all the price increases of commodities, basically mainly for commodity for us is steel. Steel is pass-on for us every quarter.

Other

largely our margins will be not affected by this? Other commodities like consumables like gas and other things are basically which affects our bottom line.

That is on a yearly basis. We are discussing with customers, and I think most of our customers agree with the current scenario because of this geopolitical issue.

We are expecting compensation on account of all these geopolitical issues in terms of price increases to come to us soon.

Okay. Thank you so much, sir.

That's all from my side.

Thank you for giving me an opportunity, sir. Sir, can you give me a rough idea what will be the revenue growth in FY '27?

No, I think we will not be able to give any number to FY '27. With the current order book and with the current capacities in place, we are looking at continued growth trajectory, and we are looking at a healthy growth in FY '27.

Okay. EBITDA margin for '27?

It will continue to I think with what if you are seeing quarter-on-quarter 200 basis points we have improved in terms of our EBITDA margins, and I think with the current scenarios in place, we are looking for a healthy growth in both our top lines and the bottom line of the company.

Okay. Thank you, sir.

Hello. Good evening, sir.

Thank you so much for taking my question, sir. Firstly, congratulations on a great set of results, sir.

Sir, just wanted to confirm in terms of casting when you're saying we'll be at near-full utilization, did I hear correctly, sir, we could do nearly ₹900 crores of additional revenue from that, sir?

No. I we have not put any number to it.

I think Lalit has clarified all out of the 70 700 70,000-odd tons of casting capacity, already current utilization, we are getting a significant revenue. Additional casting capacity which has come in the by end of March, this is going to create a at the current commodity levels, a ₹400 to ₹500 crores revenue in the coming years.

Okay. The new March capacity would be around ₹400-500 crore.

Sir, but I'm a bit new to the company, sir. When we talk about the wheel sets, we are expecting to do around 40,000 wheel sets.

What are the unit economics of it? Is this on the similar margins that our company does on a consolidated level, or and also in terms of what is the selling price, sir?

Could you help me with that, sir?

I cannot give you the selling price, but I can tell you that the wheels are in a similar trajectory of the forging business we do right now. It is a new capex, and this year we are going we have set up a capacity for 230,000 wheels.

This year railway offtake guarantee is for 40,000 wheels, which we are getting ready to supply in this financial year.

Okay. Is this on a broad basis the incremental revenue would be how much from the wheel sets, sir?

I think selling price it is right now very difficult for me to tell you because the contract was awarded 2 years back. We will need to have a real-time pricing done with 2 years of inflation and other things to capture and get to the new pricing.

I will not be able to give you exact number right now. We should be anything between ₹400 to ₹450 crores roughly in terms of revenue from the wheel plant.

Okay. No, fair.

That's fair. That's fair enough.

That's it from my side, sir. Thank you so much.

Thank you for taking my question, and congratulations on a good set of numbers for the quarter. My first question is on the overall peak revenue potential.

We've almost now expanded to about 4 lakh tons of capacity. Assuming a normalized utilization and adjusting for seasonality in the business, what is the peak volumes or peak revenue if you can give some color either on one of them over the next 2 to 3 years we can achieve with this current capacity that we have already set in place?

No, I think, Sunny, putting a revenue number, I think it is difficult. Depends revenue number is absolute dependent on the commodity pricing.

In terms of utilization, we are looking at almost 80% utilization this year in terms of our capacity, means close to around go to around 350,000 tons of overall forging and casting put together in terms of our utilization. I think that's the ballpark we are working with.

Got it. Got it.

Second question is in terms of the domestic and export mix. This year, our domestic business performance has been very strong with strong CV demand.

The mix which used to be about 40% about 40-42% export and 6 58% to 60% domestic has seen a swing towards higher share of domestic. Based on the current visibility in terms of the order book or customer discussions that you're having, how do you see this domestic export mix moving over the coming 1 or 2 years?

How how does the domestic export mix impact the overall margins? Does does higher export mean better margin profile, and how is the outlook on that?

I think with the current trend in the overall overseas market and with the new order wins in the European market, we are expecting in next 2 years our export mix to significantly improve. I think historically, which was 60-40, I think we are looking at going above 40 in terms of our export volumes in the overall scenarios current scenarios.

Export is always highly higher remunerative than the domestic market. We are very confident with the current order book and with whatever is playing around in terms of the overall global market and the demand side.

We are very confident that our margins also will considerably improve going into coming quarters. It may not happen immediately, but into going on to next eight quarters roughly 2 years our margins should be significantly improved with export volumes better than previous of 40%.

Got it. That's very helpful.

My last question is around the capacity and the capex. Basically, our utilization in the last quarter was about around 65-70%, and we have already expanded capacity.

How do you see the capex intensity for say FY '27 and FY '28, because we've spent about ₹800 crores plus of capex over the last 2 years. How will that number look like in the next 2 years?

Sunny, this year we are looking at more of consolidation, I think. With the contribution in JV, I think we are not looking at cap and maintenance, we are not looking at capex of more than ₹300 to ₹400 crores, maximum to the tune of ₹400 crores.

That also maybe most of may get into only value adds and our contribution to joint the joint venture. Most of our thrust will be in terms of debt reduction.

Lalit has already given a ballpark of close to ₹400 to ₹500 crores of debt reduction over this financial year. I think this year by this financial year-end, we should be on anything above 80% to 85% in terms of our existing capacity utilization from wherein in FY '28 we are looking for further capex to grow the business into the next level.

Got it. That is But

we are not yet basically freezed any capex plan for FY '28 right now, it's still we are talking to customers and getting their feedback in terms of what next to do in terms of the overall capacity requirements.

Got it. In terms of our cash outflow whatever contribution had to go for the JV, has that been paid for, or there is more equity that is yet to be

Some more part is left. I think, Lalit, can you just give the exact number?

About ₹50 crore will further go, Sunny, this year.

Got it. Got it.

Taking that ₹50 crores, Sunny, that in the the ballpark number is around close to ₹400 crores of capex is taken into account of that ₹50 crores.

Got it. This is very helpful, and all the best for the coming quarters and the year ahead.

Thank you so much.

Hello, am I audible?

Yes, you're audible. Yeah.

Sir, I have one question on the aluminum capacity which is there. In terms of realization or margin, how is this business?

Realization is commodity price itself is close to ₹400 per kg. Obviously, realization per ton is going to be always higher because of the commodity pricing.

Margins are close to 14% to 15% at absolute numbers.

Okay. Almost similar to the our current business.

It should not

Overall in terms of contribution, I think is much higher because 14% to 15% you get on the ₹400 per kg also. Overall, I think contribution is much higher than the current ones.

Okay. Sir, I think currently our all total fixed asset is around ₹4,000 crore.

Historically, I think if we take a blended fixed asset turnover, it's somewhere around 1.5, 1.6, which takes us to almost ₹6,000 crore revenue. I'm not looking for exact number, but ballpark kind of number.

Do you have any plans that when you want to utilize this full capacity, given we are done with the major capex, and now, this time to reap all the capex which we have invested?

We are looking at during this year, I think by third quarter or fourth quarter, to reach close to 80% 80-85% plus utilization in terms of our overall capacity.

Sir, historically, when we shift from let's say a 70% kind of utilization number to our peak utilization number, historically, we have had higher margins. Do you see possibility, I know you have said that and this quarter also we have done well on margin and you are expecting it to improve, but do you see possibility of going back to the previous highest utilization peak margins?

I will not put a number to it, but we are very confident of continuing to improve in terms of margins, and I think that is what best we can guide for right now. We continue to work on margins, and I think rest I think in term as utilization improves, as we start delivering the numbers, you margins are going to be much better than what is expected.

Great. Sir, I think in our business, in casting and forging, energy is a major cost item.

Given whatever is happening globally in terms of, the whole energy thing, do you see a in major pressure on the raw on the expense side because of energy? Or how do you see it panning out in next year?

Raw material is completely pass-on for us. We don't with a 1-quarter lag, it's completely pass-on for us.

We don't get affected by the raw material increase. In terms of other consumables major consumers in terms of commodity is gas for us post the raw material.

To my earlier question also, I have answered with the current geopolitical issues, we have gone back to the customers in terms of force majeure clauses, and we are very pretty hopeful that the customer will compensate us to the maximum possible in terms of the gas energy price increase.

Great. Thanks a lot, sir.

I'll come back in the queue. Wish you all the best.

Hello, sir. Good evening.

Thank you for the opportunity. Sir, my question was in respect of realization for our forgings.

Even if we take our annualized capacity utilization, we are already close to 70s or 74% capacity utilization as per our presentation, if we take the annualized installed capacity. Yet our realizations have been poor than the quarter 4 of FY 2025.

Even if we move forward with a higher capacity utilization, how do we plan to improve our realization of rupees lakhs per ton, sir? No,

I think realization also is affected by the commodity price. I think realization is not absolutely what realization is directly linked to the commodity price.

If the whole year has been you must have seen that raw material prices continued to decrease. With the decreasing trend of raw material pricing vis-a-vis FY '25, that is the effect which we have had.

In terms of product mix, I think we have had a much better product mix in the second half of the year of this financial year. I think we have done much better than what presumably would have been with the current commodity price if the product mix would not have been what it is right now.

Because my question was because our export realization have increased from 1.77 lakhs to 1.85 lakhs.

Both the things, I think. Exports realizations are always much better.

If you see the previous year, exports were higher than this current financial year. As a percentage.

Export as the export grows, automatically the realization overall realization is going to be much better than what it is currently there.

All right, sir. Thank you.

That's all from my side.

Hi, am I audible?

Yeah. One first question is pertaining to the non-auto order wins.

Almost 250-odd crores order have come from energy segment. Can you just explain what exactly what kind of orders this within the energy space?

Milesh, can you answer this question, please?

Basically, as energy storage has become the latest trend in the market, and we have received a lot of orders from companies which are very doing very good in energy space in the North America market. They have a very ambitious plans with regard to the energy storage devices, and these devices actually require a lot of forgings and castings as a mix in order to go forward there.

We have received a good order book on account of it, and that's what we have reflected in the order books.

Thanks for the clarification. Sir, last time when we talked about the turnaround within the US business, we talked about largely the new customers or the new wins which were helping us, come back slowly on growth.

That also shows up in the numbers, almost Q-o-Q there has been a growth. Now going for FY '27, are our with the tariff behind us now and as Naresh sir also to talked about, coming revival of demand as far as Class 8 trucks is concerned, do you think FY '27 could be a normalized year from a US export or a North America exports standpoint, or it could be a even a growth year given that, Mexico is I think likely to go live in a couple of weeks if not a couple of months?

It will be a growth year, I think. It will be a growth year vis-a-vis previous year in terms of our North America performance is concerned.

Oh,

that's great to hear, sir. Sir, now another question that I have is pertaining to I think mainly for CFO sir.

There is a given in a notes of the results, there has been some loss provisions that we have made vis-a-vis tariffs that some of our customers have had to bear. Can you explain something pertaining with ECL?

What exactly is this?

See, we have made a provisioning of ECL for ₹42 crore in this quarter as basically this is in light of income of electricity duty, which we got order in the last quarter, and the income has been recognized as exceptional income. We did not wanted to carry it into our profit, and so on a prudent basis considering the current economic scenario and whatever the volatility we have in the global environment, we just provided as ECL on our receivables for this ₹42 crore amount.

This amount is totally receivable, but still we got this headroom to provide for this. This may will help us in future only.

Thanks for the explanation. Now coming back to the shipping time.

How's the shipping time? Is it now back to normal, especially for the our US side, or is it still on the higher side?

How's the cost shipping cost right now?

Shipping cost has gone up by about 15% to 20%, and the days have increased by almost 15 to 20 days.

Okay. Sir, because last time when this happened, a lot of our floating inventory ended up becoming on our books.

Right now, how is that floating inventory right now? Is it in line, or do you think that should be fine going forward?

It is in line.

Okay. Sir, do we have any West Asia exposure in terms of clientele or revenue?

No. No revenue and no exposure.

Sir. Thanks.

Sir, last question is, you have elaborated a bit on the titanium and those kind of alloys where RK Forgings is foraying into, and it's good to know because again, aerospace is gaining a lot of traction. These are also long gestation period because approval times are quite longer.

When do we think that, this would end up say adding something substantial to our top line, or at least in the order book will start reflecting say in the order book? Any sense or color on that?

I think in terms of order book, by this financial year-end it will start reflecting in our order book. In terms of our revenue in terms, I think it will take additionally, I think, 12 to 24 months because these are long lead items to make also and get approvals.

We are not looking anything in terms of our revenue before FY '29.

Sir. Now, specifically to the EV segment, because it is now kind of making some sort of a comeback, right, both across Europe as well as even US had a reasonable quarter.

Now how are those EV-focused order or revenue looking up? Are we looking at say much better contribution from them going forward?

I think EV is performing extremely well for us both in the domestic market and overseas market. I think as our diversification strategy and as well as our dependence on ICE to decrease the same, we are already working very aggressively to improve our passenger vehicle portfolio, which is mainly constituting of EV segments only.

I think we have already guided for a 10% revenue in 2 years' time from to come from basically passenger vehicle segment.

So 10% PV is synonymous with 10% EV as an overall level. Is that a fair understanding?

Fair understanding.

Sir. thanks, sir, for responding.

Best of luck for the coming quarters.

How much revenue did we generate from railway assembled undercarriage for the full year?

Can you repeat the question, please?

How much revenue did we generate for the railway assembled undercarriage for the full year?

We'll not be able to give you exact component-by-component revenue achievement. We have achieved a significant portion railway business as a overall 7.5% is overall in terms of our railway business, which is performing, and we are looking at double digit almost to achieve the number by this year.

from railways.

Okay. Thank you.

Sir, thank you for giving me an opportunity again. Sir, can you tell me from where you are buying aluminum, which is your raw material for forging?

We are buying from Hindalco.

Hindalco. Only one supplier you have, or yeah, you import also?

We basically a customer-directed buy.

Okay. Thank you, sir.

Thank you.

Hi, sir. Thanks for the opportunity.

Sir, I just had a clarification question. You mentioned that this time around you would be having almost an 80% utilization on your capacity of 350,000-odd tons.

Sir, but what is your say your target which you are expecting in terms of the overall sales volume? Because

in

Yes, sir.

Sales volume, I think every quarter-on-quarter you will see significant improvement. I think in terms of percentage is very difficult to say.

We are very confident whatever we will make, we will be able to sell that.

Okay. Sir, because even in the last conference call, if I'm not wrong, we had mentioned an upper limit of 10% to 15% kind of growth for FY '27 and FY '28 in terms of a CAGR.

Yeah.

With the current order book, we are very confident of surpassing We are not trying to put any number to it right now. I think with the current geopolitical issue going on, it is a risk also.

With the current order book, we are very confident of growing. With the capacities in place, we are looking at achieving those tonnages in terms of our production plans, and we are very confident to sell those.

Okay. It's fair to assume that we'll be growing higher upwards of the 15% number.

I will not put a number to it,

but

I think we are looking at a decent and very good growth in FY '27.

Okay. Sir, ballpark, on an 80% kind of utilization levels, what is the kind of leverage in terms of margins that kicks in assuming every other thing remains status quo?

I think the current margin which we have been able to achieve in the fourth quarter, I think now it's here to stay, and we are doing going to do better margins than what we have achieved right now in this quarter. I think as the capacity utilization, economics of growth come continued scale, and everything remains as where it is, and we are able to pass on the energy price increases which have happened, we should be at least 100 to 150 basis points better than what we have done right now.

It all depends on whether we have we are able to pass on the energy price increases.

Okay. Sir, but you would have some fair bit of an idea from your current months export, say in April, May.

Have you been able to get those better or a higher realization?

I think we have not yet been able to pass on the energy price increases. We have already had discussions, and I think discussions are in advanced stage.

Beyond that, I think it's very difficult for us to say anything that whether by when we will be able to get. Whatever we will get, we will be able to get from 1st April onwards.

Exactly how much and by when, it is very difficult for Because it is industry-wide which is going to happen. It's not going to be happening for us as an isolated case.

Whatever the customer approach OEM approach takes, it is to be happening in the industry-wide space. I think we'll wait for some time before we can comment on it.

Okay. Sir, my final question.

I am not asking you for a particular number, but in terms of volume on the export business side, looking at the current situation, how has been say the month of April, which has already gone by? Was it better than March, or things are not

I think it's very I will not be able to give you a reflect on the anything on the current numbers, but I can only say this year FY '27 export volumes are going to come back, and it's is extremely strong. We are very confident of doing much better exports than our previous in terms of overall mix of percentage to sales.

we are going to do much better than what we have done in previous years and quarters.

Okay. Okay.

Sounds good. Thank you, sir.

Thank you so much.

Good evening, sir. Hello?

Hello.

Hello.

Yeah. Are there any plans to increase ring rolling capacities?

No, I think there is no plans right now in this year this financial year to increase our ring rolling capacity.

Okay. Thank you, sir.

Sir, just one clarification. The orders that you have won of ₹323 crores on the domestic CV part on the CV part, how much of that would be domestic and how much of that would be exports?

Milesh?

You repeat the question, please. It's not very clear.

Yeah. I was asking the ₹323 crore order that we have won on the CV side, what would be the split between domestic and exports?

Against the ₹323 crore, the CV would be more than 50% in the CV more than 50% of the it is export and around 50% is from the domestic.

Okay. Thank you.

That's it.

Hello.

Just again regarding ring rolling. Here I'm seeing here it's at 121% utilization.

It's does it affect in any way negatively crossing the capacity?

No, it basically is 121% you if you see the history also, ring rolling has been operating at more than 100% as always, and it does not affect in terms of the life of the equipment or in any way.

Thank you, sir.

Thank you. We would like to thank all for taking out the time and joining our earnings call.

We hope we have answered all your queries and for your satisfaction. We would like to further inform that get in touch for with us on CDR if you have further information required.

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Thank you.