Thank you very much. We will now begin the question -and-answer session. We take the first question from the line of Deepak Poddar from Sapphire Capital. Please proceed.

Sir, am I audible, sir?

Yes, you are audible.

Yes. Thank you very much for this opportunity. Sir, just wanted to understand now on the visibility going forward. I mean, you mentioned that in India, the JJM continues to delay. So the DI pipe offtake is also on the lower side in the Middle East because of the current situation. Even the peace talk failing has provided you limited visibility. So I just wanted to dwell more. So how should one look at the execution this year? I mean -- or by when we expect some kind of traction in your volumes? So something on those lines, your comments will be very helpful, sir. Yes.

Yes. So Rajeev is taking the question. So Rajeev, can you please help?

Yes. So as Vinay mentioned in his opening remarks that performance in the first quarter because of multiple reasons and geopolitical issues, which is likely to continue in the coming quarters also. So this was also.

Sir, your voice cracked. Can you just repeat just this last line. I mean, yo ur voice was not very clear. Yes.

So we mentioned that.

Your voice is echoing on the call.

Is there echo also on your side?

No, I don't think so there is any echo I'm hearing here.

Okay. Good. So given the current scenario, domestic as well as overseas, order book is quite consistent. There is a little bit of dip in terms of volumes, but we are – in the current situation also we are likely to execute these orders in the current year, and the volumes are likely to remain at the same level as it were in FY26. That is our prediction. Given the current scenario, with still the [inaudible 00:18:46] that's going on, but we are working on multiple strategies beyond the MENA region. On the domestic front also, some strength in water sector from state-driven projects where we are seeing some uptake improvement in first quarter, and this is likely to co ntinue. So this is our estimate that if the situation remains same, volume-wise we are likely to achieve the same level what we did in FY26.

Okay. Just to summarize, I mean, you mentioned the volume in FY 27 overall is likely to be flattish given the current scenario? And offtake, you have seen some improvement in Middle East and you expect that to continue?

In the Middle East, we -- the situation is a little bit different. On the domestic front, we have seen some improvement. But in the Middle East, the monthly dispatches should remain in the same range, like 10,000 to 12,000 ton per month. So that is something which is where we can supply the material through the road only. So till the time Middle East conflict is going on and sea route is not open, this level of operations we are likely to continue.

Also, let me supplement what Rajeev said. Mr. Poddar, Rajeev mentioned what we are doing from Abu Dhabi plant to cater to the Middle East market, okay? Secondly, if you're asking about like how we are catering to Middle East because the Middle East remains practically blocked from -- for us, for countries like India from March. So, we have a sizable order book for Middle East from India. As of now, that order book is on hold, but we are now working out on various other options, specifically in terms of, let's say, if it is to cater to Saudi because they are -- that's where we hold an order of 600,000 tons, even if it is on the job work basis. So, we are -- because Saudi has the alternative route also, which can take -- in terms of time, it can take much longer. It has cost issue also, but we are now engaged with the buyers to find a solution, which is a kind of, let's say, possible for both sides so that we can -- even if this stalemate continues, so we are trying to find a solution that we execute at least that order, because Saudi has both sides of the sea. So, we're working on that solution. It might take some time, but we hope to find a solution for that. If that is workable, that takes care of a larger order book.

Okay. I got it. Understood. And just one last thing on the interest cost. So, there was a sharp reduction in your interest cost. So, what led to that? And how should one look at your interest cost going forward?

See, this is the interest primarily on our working capital and term loan, which is the hard, let's say, roughly INR70 crores, INR75 crores. One of the larger compositions in the previous -- last previous quarters, specifically quarter 4 of 2026 , got significantly impacted because of sharp depreciation of rupee in that particular quarter. Fortunately, in this quarter, the rupee is fairly stable.

Yes, yes. I'm there, sir.

So, I think -- I thought that there's some disruption. So, in this quarter, since the dollar -rupee was fairly stable, there was not much of the impact which will debit it to this account. So, this INR70 crores, INR75 crores in the part which is being paid in the loan.

So, we expect these kinds of run rates going forward as well, assuming the rupee volatility is not there?

Fine. Yes, that's a fair assumption.

Okay, got it. That’s all from my side. Wish you all the best. Thank you so much.

We take the next question from the line of Shweta Dikshit from Systematix. Please proceed.

Thank you for the opportunity. Sir, my questions are around the MENA projects that are ongoing. Firstly, on the seamless pipe plan that is expected to commission in FY29, any idea or any sense on utilization levels of volumes that could be achieved in FY29? As well as what -- any sense on what happens on the DI pipe commissioning capacity of 1 lakh tons? How is that likely to contribute to our financials in the next 2 years? And similarly, on the SAW pipe plants which are coming up in Saudi, what is the commissioning time line if I missed it earlier?

Okay. So, Shweta -- okay. So, let's say, to describe your question, you are trying to understand when these projects are going to be implemented, whether it is seamless project or LSAW and DI plant in Saudi and Abu Dhabi. So theoretically, the longitudinal and helical pipe plants should be done -- can be done in 18 to 24 months’ time. We are trying to crash some of the activities. And we -- and presumably are considering, maybe assume that the stalemate in MENA region is likely to be over in the next couple of months, maybe 3 months, 6 months, whatever. And this is the time when we don't need equipment’s to land at that location. So, this is a time we will use to develop the site, specifically the Saudi because they are the new sites. So, if everything works well, we can complete the execution in next 1.5 years' time. And then the production, let's say, the testing and everything will start. Theoretically, we expect when we consider, let's say, utilization of approximately 50% of the capacity. This is theoretical because everything will depend on the project because these are like simple technology projects, unlike ductile or other things. There, we should get the orders and depending on the, let's say, shifts we are using, the capacity can be ramped. So, in terms -- theoretically, we have also assumed that we would produce and sell roughly 50% of the capacity, which is, let's say, 150,000 tons each in both the projects. Ductile, 100,000 tons, I mean, we can consider 50% to 60% of the capacity, but the Saudi market can take the entire production also. That's not a big issue. It will be a continuous plant on the top of this. In terms of seamless, seamless, we again believe that we can complete this project now from today in next 18 to 20 months' time because a lot of time has been saved by us by taking a land, which is a plot of land, which is already developed. There was alre ady a factory. So, we need not to fill the site. We need not do the piling and anything else. Equipment -- majority of the long delivery items have already been ordered. And maybe in next 9 to 12 months' time, the equipment delivery will start. And again, when we are commissioning the project, we believe that we can do 50% to 60% in the first year. Seamless will require approvals also. So, in the first year, a couple of initial months will go for -- including in the longitudinal API grade, a couple of months goes for taking the approval. And pending that, we can do non -API production also. So, to answer your question, we -- theoretically, we presume that production in all facilities will start in '28, '29, number one. Number two, theoretically, we are considering roughly 50% approximately production in all the facilities.

I was saying in that case, I think FY30 or FY31 could be the peak utilization of all the capacities together, if I'm not wrong.

Yes. So, Shweta, you're right, within 2 to 3 years' time, we are expecting the peak capacity utilization in all the plants.

2 to 3 years from now, right?

Yes. From '28, '29 onwards. Yes.

Okay. And lastly, any guidance that you could provide for the seamless pipe facility in India, the Nashik plant, since now the API license is reinstated. So, your -- last year before the commissioning of piercing mill, management was guiding to hit a run r ate of around 80,000, 90,000 tons every quarter. When do we expect to hit this run rate, if it is still going to take time, or what would be the possibilities there?

Shweta, utilization in seamless facilities in Nashik is going to ramp up because...

Ladies and gentlemen, the line for the management has been disconnected. Please stay connected till I rejoin the management. Thank you. Ladies and gentlemen, thank you for waiting patiently. The management line has been connected. Sir, you may proceed.

Yes. So, Shweta, your question was relating to the capacity utilization improvement in seamless Nashik unit, where we actually the -- API licenses have been restated very recently. So, since January to June, we were not eligible to participate in any of the API-related supply tenders. So, this activity has started now. We have started participating in the business, but what we expect that at least a quarter or so, there will be some gap in terms of the utilization levels, but we are expecting that September or October onwards, the facilities should start improving the ut ilization level because API-related sales, we are expecting to come into the production. So, October onwards, we can expect the better utilization in seamless.

Roughly, what utilization levels, sir? And are we looking at 80,000, 90,000 ton s quarterly volume since -- starting 3Q?

So it will be somewhere in 70,000 to 80,000 tons, yes, definitely, quarterly.

Okay sir. Thank you so much. I will come back in the queue.

Thank you. We take the next question from the line of Sailesh Raja from 360 ONE Capital Market. Please proceed.

Thanks for the opportunity. Sir, our order book stands at 1.78 million tons, of which 0.75 million metric ton is exports order. So within exports, around 6.08 lakh pertains to H elical SAW job work orders. So could you help us understand the composition of the remaining 1.42 lakh tons? Specifically, how much relates to LSAW pipe and DI pipe? Additionally, could you provide the breakup of export orders between Middle East and non-Middle East, sir?

So Sailesh, Middle East or non-Middle East combined order book is roughly 60% export order book is from Middle East and rest of the 40% is from the non-Middle East market. So that is on an overall basis. Yes.

Okay. Sir, can you give the breakup of this 1.72? Other than non-job worked order, the balance quantity is 1.42 lakh tons. So how much is LSAW and DI?

So in terms of value, if you talk about, roughly 70 million ton is from longitudinal, USD 30 million order book is from seamles s, and ductile is from roughly USD 40 million is the order book.

Yes, overall. Yes. I'm talking about exports only.

Yes. And also, in the near term, as you said, the outlook remains uncertain during the geopolitical situation and slow recovery in domestic water infra spending. So how is the company thinking about de-risking in order book geographically? Are you aggressively pursuing opportunities in the market like US, Canada, Southeast and other regions? Or is the strategy to maintain focus on existing market to preserve the market share and execution capability until the Middle East and domestic demand normalizes? So what is our strategy?

So in terms of ductile iron pipe or water sector, primarily led by DI, as you mentioned, yes, domestic front, there is -- again, JJM is not coming up very prominently. So domestic front -- to mitigate the domestic risk, we have already started exploring the overseas market, primarily the Europe, which is having a peak demand, and we are also getting good inquiries from this market, and we are likely to increase our export order book in the coming quarters. So some of the facilities will be dedicated for export market in ductile so that we can actually decentralize or de-risk the concentration risk on the domestic market. That is the strategy we are following.

And how about the other segments, sir, seamless and Helical SAW products?

So okay. This is Vinay Gupta. So Sailesh, in terms of our strategy, order st rategy, if you see in the last two years or a couple of that year or for that matter, we used to have 30% of export, 70% are domestic, maybe 5% plus/minus. Now the serious problem is on account of the MENA region. So -- I mean, any sensible organization would start looking beyond the -- your stronghold. So we are at all possible territories and the regions where we can approach conveniently and economically. For example, for the longitudinal and helical pipe, it does n't make any sense to look at US or China or Canada. We have served to Latin America. We are looking at Southeast Asia, where China is not allowed kind of. We are looking at CIS We are looking at all possible options wherever the demands are coming or can come so that till the time the i ssue of MENA region gets sorted.

Ladies and gentlemen, it seems like the line for the management has got disconnected. Please wait till I re-join the management. Ladies and gentlemen, thank you for waiting patiently. The management's line has been connected. Sir, you may proceed.

Yes, okay. Sorry, Sailesh, line again has got disconnected. So I was just talking about, let's say, looking at various opportunities globally wherever it is possible. And hopefully, we should make announcement in some time to come. So -- but these are the reasons which earlier we were not focusing very, very specifically, which we are focusing now. And as Rajeev said, for ductile pipe, of course, we have a presence in Middle East, which is catering to Middle East, but now we are looking from Indian facility. We are looking all our area. And we have -- we already have a presence in Italy, and we are likely to -- we are looking at it to increase the presence in entire Europe from there.

Sir, since you have named Italy, so in our latest that -- company's LinkedIn post, it is mentioned that successfully qualified API 5L with minimum yield strength of 70,000 psi from the Italy lab for the LSAW pipes for transporting pure hydrogen and hydrogen-natural blends. And also, we supplied, I think, 180 miles of 18 -inch pipe for yard products. So how big is this opportunity for the next two or three years? Or how large is the size of the demand globally? And also what is our right to win over global players in this hydrogen transporting pipes?

So Sailesh, yes, there are much talked about business opportunities related to the hydrogen transportation media as a pipe. So we are qualified for that, and we have got some certifications that our pipes are qualified for transportation of hydrogen gas. I n that scenario, we are also exploring the possibilities and exploring the market. Wherever we get the opportunity, we can tap it. We are ready. Our facilities are ready. But still, the ground-level demand is yet to come. So we have not seen demand in a big way. There are discussions going on. But still, at ground level, we have not seen a significant demand in this specific area.

Okay. Okay. Sir, one last thing. Also in our annual report, it is mentioned that first time company -- in India, we have started manufacturing stainless steel coil tubing. So could you elaborate on addressable market, end application use and also the growt h potential in both domestic and exports market?

Okay. These kinds of coils -- in our annual report, we have mentioned about this. This is a specific requirement of one of our customers. So this only shows our capability of dealing with the new requirements of the customer. As far as the demand and the n ame of the customer and the industry where it is required because of -- it is customer specific, and we are bound to nondisclosure policy of the customer, we are not sharing that kind of information in this call.

Okay sir. Thank you sir. All the best.

Thank you.

Thank you. We take the next question from the line of [Disha Chamria 00:39:44] from Trinetra Asset Managers. Please proceed.

Hello. Am I audible?

Can you speak a little bit louder?

Yes, sir. Sure. Am I audible now?

So last call, you gave the -- you said that the margins have bottomed out. And given that the Q1 numbers are yet not positive, do you think the margins will improve from this quarter or the pressure will continue to quarter 2?

Of course, so let me -- if I understand the question, the question is related to the current margins and how the margins look like, correct?

Yes, sir. Correct.

Okay. So, margins, of course, have come down because of the whole model has got disturbed a bit because of external factors, because of internal factors, whether it -- we call it the West Asia issue, we call it Jal Jeevan Mission and also because of, let's say, the suspension of our API license for seamless pipe, which has been reinstated. So, all sort of issues had impacted the margin. And this has also impacted our overall utilization of the facilities, thereby the absorption of the fixed overhead. Moving forward in next couple of months at least , till the time we are able to utilize our facility to an optimal level, again, the problem might continue because at the end of the day, one is basically the margins on the production. Second is utilization of the facility. We expect because of -- specifically in the LSAW, HSAW facilities because of the lower utilization of those facilities, and secondly, we have multiple facilities across the country. There would be some pressure on those products, primarily because of lower capacity utilization. But we expect that this may get arrested , maybe in a couple of months when we find, let's say, options and solutions to cater to the domestic demand as well as the Middle East demand. So, our -- even if we are not able to, let's say, we don't -- normally, we don't give the forward-looking numbers. But in general, we expect that, what we have done in the first quarter, maybe second quarter may also be similar or whatever, but we are hopeful that if everything works well, the H2 would start showing the improvements over the H1.

Just to add on, as we mentioned that in the last call, it was mentioned that H1 will be softer given the geopolitical situation and domestic water industry situation. It was already guided that H1 would -- should be softer. And based on that, results are also indicating the same.

Got it. So, the impact on the H2 being -- seeing a recovery will be intact, correct?

Yes. That is our expectation.

Okay. And on the working capital side, does this working capital thing should be normalized at this point? Or will it see an increase after the operations get started and the utilizations improve?

Working capital is definitely directly related to the operations, because now operations are on a lower side, that's why the working capital is on a lower side. Once the operations started improving, we may see increase in the working capital deployment, and it's a direct correlation, and working capital is a part and parcel of the business because it is a largely project -driven company.

Got it. This is due to the current utilization level that it has been looking at the lower level, right?

Yes.

Yes, correct.

Thank you so much.

We take the next question from the line of Vipulkumar Anoop Chand Shah from Sumangal Investments. Please proceed.

What is our current capacity utilization? And can you break the domestic sales between the ductile pipes, seamless pipe and SAW pipes, HSAW and LSAW?

So generally, we don't share the product -wise sales because we are maintaining the combined pipe portfolio as a single segment. That's why we are showing the volumes -- pipe volumes and pellet volumes. So that is something which we are following as a policy of the company.

Okay. But what is our capex -- what was our capacity utilization in last quarter? And what was the capacity utilization for last year for full 2025-2026?

So, capacity utilization was approximately 60%, 65%. Overall capacity utilization we did in FY26. And current utilizations are also on the same line.

Okay. But it will not be possible to break sales volume -wise in different type of pipes, like ductiles and this LSAW, HSAW?

So, it is a policy of the company since we are following up segment -- or pipe segment as a single segment. So that's why we don't disclose all these numbers product -wise. So -- you can consider overall because this is the kind of a strength of the company that we are total pipe solution provider. That's why all the pipe products are under the same roof. So, you please consider as a total pipe volume.

Okay. So apart from these 2 Middle East projects which are likely in '28, '29, we are not having any capacity addition in between as far as domestic capacity is concerned, right?

Yes.

No capacity addition, domestically.

No domestic capacity additions we are looking for. The capacity expansion projects are in the Middle East, like Abu Dhabi and Saudi Arabia.

Yes. But in India, there will be no capacity addition, right, sir?

And lastly, when these projects are towards the end of their implementation cycle, what will be the peak debt of the company?

So that, term debt as of now, as we mentioned in the initial remark, it is in the range of INR500 crores, INR500-plus crores, and that's a long -term debt, almost zero debt. And that will be increased gradually. Once the projects are over, we are estimating that term debt should remain in the range of INR3,500 crores approximately.

So, from INR500 crores to INR3,500 crores, it will jump.

Yes.

Term debt. Working capital is additional, right?

Yes, additional. Definitely.

Okay sir. Thank you very much and all the best.

Thank you.

We take the next question from the line of Shaurya Shah from Equirus Securities Private Limited. Please proceed.

So, of course, the line pipes business has seen some challenges in the India region. So -- but in terms of bidding, right, are we seeing any pickup in bidding of any large upcoming orders in the India line pipes business? So basically, can you provide us w ith the amount involved in the bidding pipeline for the company?

So that is something which is a market -related information or marketing strategy, so that is something which definitely as a process, we are tapping all the available opportunities. But sharing any specific opportunity would not be appropriate because it is a public platform, and as a company policy, we are not sharing the marketing strategy and marketing policy on a public platform.

Okay. And any kind of forward integration like expanding more into pipe spooling business or any such plans? Maybe not in the near term, but let's say, over the next 2 years?

No, not specifically.

Sorry. See, the -- when we are saying the cooling pipe business and all, this is the application of the pipe. For example, our pipes -- our ductile iron pipes can be used for cooling as well as for hot application in the different terrain. So, we basically produce pipe as per the specifications...

It seems like the line for the management has been disconnected. Please wait till I rejoin the management. Ladies and gentlemen, thank you for waiting patiently. The management line has been reconnected. Please proceed, sir.

Sorry for the -- again, the lines are getting disconnected again. But what I was trying to explain is that we produce as per the specification and the requirement, and it is up to the customer or the buyer to put it to the use. And I was telling like we have seen application of our ductile pipes in Middle East, which is being used into various kind of application, let's say, it is also being used for cooling chambers or cooling applications, also f or the hot applications because that's the properties of the pipe. But we don't put to the application on our own.

Okay understood. That’s it from my side. Thank you.

Ladies and gentlemen, we take that as the last question. I would now like to hand the conference over to the management for closing comments. Over to you, sir.

Yes. So, we appreciate all of the participants who attended this call, and thank you very much for that, and look forward to have an interaction once again next time. Thank you very much.

Thank you. On behalf of ICICI Securities Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.