Pranav Bansal

All right. To answer that question, let me break our Q1 into two parts. The first 45 days is when we saw an exponential increase in all our consumable prices, majorly gas and other packaging and other consumables to the tune of about INR 5,000 a tonne on a blended basis. Now as a company, we took a very conscious decision not to pass this over to our customers on the firm rate of orders that we already have.

We operate at a cost -plus model wherein any increase and decrease that we take in our raw material or even consumable is passed on to the customer. But now in steel, we carry about 30-40 days of stock. Now to create a natural hedge in the system, what we do is that 40 days of inventory is also covered with 30-40 days of fixed rate orders, so that we do not get into a cycle of commodity pricing.

From almost May 15th, we are already back to INR 7-INR 8 per kg margin.