Thank you very much sir. We will now begin the question and answer session. We have a first question from the line of Chetan Doshi, an individual investor. Please go ahead.

Good evening, and thank you for giving me the opportunity to ask the question. Now, the first question is that we say that we are market leaders in India , but the results for the quarter and for the entire year, it doesn't reflect the leadership qualities and the product portfolio what we are into. And second question is, in spite of de growth, how come there is almost 50% increase in employee benefits? Even if people don't perform in the organization, you intend to increase the benefits by almost 50%?

Chetanji, thank you very much for your question. You are going by quarter numbers or so. I think we are the undisputed leader. There's no doubt about that. And our fundamentals are very strong. We are working on many areas. We differentiate ourselves from our competition. One of our competition has shown tremendous growth in one quarter with the serious dip in margins. So if the competition, as I said, over capacity, going into the market with whatever price they are offering, and they are accepting the order just to enter the market, should we go into that rat race and erode our market further just to grab market share. I don't think this is a right decision. Being a market leader, it is our responsibility to remain a healthy competitor, guide the industry also to remain healthy. Otherwise, this refractory industry will die. So it was a very str ategic decision. We will not go by this rat race of people who are entering into new markets, we have a very clear thought process. And if you see, we have also entered in iron making area with the healthy margins. My margins are as good as my other all established products. I have not entered the market with the throwaway prices to erode the market or just to grab the order. We lost lot of order because I don't want to get order at 4%, 5% margin with less than 0% EBITDA. So that was strategic decision we took. I think that is a right decision, but you have your own opin ion and I respect your opinion.

No. Sorry to interrupt, but you see, we have much larger portfolio compared to anybody, any competitor which is there into the Indian market. So what my question is, your marketing team or the people in the organization, they are not able to exploit the market in full capacity. Otherwise, that leadership is lacking. Second thing is, since last couple of quarters, I'm highlighting last 2 to 3 days, as for it is a compulsion to declare the results, so we come up with a date and say, okay, these are our results. W here is a leadership quality. We are living in digital world and all the records. See your parent company , I am really upset with the way or the approach of RHI Magnesita India operations wherein your parent company is if you see their write up or they are very clear what they want and they are into much larger acquisitions and they operate worldwide and everything your Stefan Borgas also is very clear as this year the margins will be so and so. Even the guidance given,

Page 7 of 19

it is very near to what he says. Here we have excuses. This time the raw material has gone up. This time the employe e cost has gone up. This time there was some problem in the dispatches. This customer canceled the order. See, these type of excuses are not good for the organization. We have to deliver. And I think after the acquisition, almost more than one year is over. Sorry, it's a lengthy question, but these are the points. Next quarter, I expect you to come out with the results like what other MNCs do.

Again, I emphasize when you are talking about global company or Stefan Borga s' statements, we are fully aligned with that and we are driven by the philosophy, the strategy of the global leadership. So they are fully aligned with what we are doing in India and they are fully convinced that this is the way to do and let's not drag t his. As a shareholder, you have all the right to hear your frustration, and it is well taken.

No, it's not frustration. Parmodji , see 28th of the month, 2 days are left for closing the accounts. We are doing it just 2 days back. Where is the leadership here? The second thing is that when you have such a big portfolio to operate, the presentation lacks highlighting the features with these points, we have really gained over competition. Last time also, and just 15 minutes back it is uploaded. For the sake of doing it, it is done. You can keep concall day after tomorrow also.

So, you are thinking our competition is gaining margins? Is this your analysis?

No, Parmodji. You are taking it wrongly. See, my question is, we have such a big portfolio to operate in India. We have the backing of our parent company. We have the market.

Have you gone through the presentation? How many products we are bringing to India with the latest technology, innovation? Have you gone through that? I don't think you have gone through the presentation properly.

But 10 minutes back you upload and you expect the entire presentation to be gone through. It is uploaded; you see the time.

That is there. We have uploaded it late. But you could have asked that question 15 minutes later and gone through the presentation. Why you are the first one to ask the question? You should have gone through the presentation while in remote. And other people can talk. And then you come back. And still I am requesting you, please go through the presentation. And after half an hour, jump back again., okay?

So let me answer that, by benefit of question. So for the full year, we basically have a 2% increase in employee benefits. And for the quarter, we have a 16% increase. There were

Page 8 of 19

two major reasons. One basically was the inflation correction that we normally do, along with some of the government mandated increases that have been sought. For example, in states like Orissa, it was expected to increase more than the inflation. This thi ng and the second thing. Yes, the second thing basically was that we have harmonized our HR policies across all the three legal entities now. So for example, the l eaves and gratuity arrangement, we had different policies of the acquired entities, so this i s basically completed now.

I will again come back to you. Thanks.

Thank you. We have our next question from the line of Suraj from Asian Market Securities. Please go ahead.

Sir, thank you for the opportunity. Revenue declined by 9% Q oQ and 2% YoY in Q4 FY'25, while our EBITDA margin fell sharply to 10%. How much this decline is attributed to seasonable cement demand versus pricing pressure or project timing?

Mostly it is driven by high alumina cost. About 6 months back , we were buying tabular alumina, white-fused alumina in the range of Rs. 60,000 to Rs. 65,000 a ton and it went to Rs. 95,000 a ton. So this has a huge impact on our commodity business when it comes to cement or non-ferrous or glass or even our flow control products. So it is the main driver for this erosion of EBITDA. Apart from this, yes, there are some levers also. As I said, the competition, I don't want to take any name, but they enter the market with very, very attractive pricing. And nowadays, end user, whether it is a cement industry or all small players, they are looking for the price . They said, okay, we are not bothered about RHI Magnesita or XYZ they are giving us more than discount on that price also. So why should we not give them the order? So should I also follow that? So I thought I can not follow that. So there are two levers were having impact on this EBITDA erosion. Fortunately now, alumina prices are going down. From 95 000, it has reached to Rs. 77,000. It will go down further. It has not reached to the level from where it started, but at least it is a halfway backward. So this will help us to increase our margin also in coming quarters. And also at the same time, we are doing some product optimization also. I would say as a leading company, a multinational company, as a listed company in India and at London Stock Exchange, we have a very clear, transparent quality assurance system. So our recipe may be over a linear, maybe we are offering better product than the small players who are entering with the some compromise on quality standards and all those things. So we don't want to do that. So that we are looking at how we can offer best qual ity product, better quality product where the performance speak for itself and the life of the cement kiln or the other lives improve. So that is our way of entering into the market. Maybe we are a bit

Page 9 of 19

slow, maybe we are working, whatever innovation and R&D people are working on it, maybe a little slow, I can accept that. But our way is right, and our vision is very clear.

Thank you. We have our next que stion from the line of Gopal Ag rawal from HDFC Mutual Fund. Please go ahead.

Yes, good evening, sir. So I have some observation and clarification to seek. So in this quarter, as compared to last quarter, we have seen other expenses have increased significantly, despite our topline has come down. That is one. And second, like employee expenses are also high, even Q-o-Q and Y -o-Y, despite our topline is less. So are there some one-offs? Can you clarify? The third question is that as we are seeing alumina prices, we shot up very high. Now coming back, so how much old inventory do we have? And when we can see the benefit into P&L of this?

Thank you. So I will answer the other expenses part. So basically we had this true up of our statutory CSR expenses that has basically seen as a higher number in the other expenses. So that has contributed to that. Second question would you take?

Sir, how much can you quantify?

Alumina pricing, it will come after 3 months.

We always carry an inventory of about 2 months' time. So I believe July onward, we should be having this reduced price inventory in our system and next quarter should see improvement in margin for sure.

And sir, would you like to quantify the CSR expense for the quarter and last year?

Last year it was about Rs. 7 crores, Rs. 6.83 crores to be very precise. It will be almost same, it is a combination of last 3 years total profitability. Rs. 6.84 crores this year also as you see our revenue and profitability in absolute value is same. So if you don't look at 10.2 or so, so our probability in absolute value remains same, it has not eroded.

And sir, anything on the employee expense side?

So as I mentioned earlier, again, three causes. Number one is the inflation adjustment, which we normally do it in the first quarter effective January. So this was one of the reasons. But on top of that, as you know that in Odisha and some other play state s, there was a mandated increase in minimum wage requirements. The second one basically was that we also had to harmonize as planned. We had basically to harmonize our leaves and

Page 10 of 19

gratuity policies for the acquired entities. So these are the two things that impacted our employee costs.

So can we assume this as a recurring now or it has come into base? How do you look at?

Absolutely. Having said that, we will also balance this with our operational excellence program to improve productivity. But yes, this is a good base for you to assume for the future.

Apart from this, OES or operational excellence, we are also looking at how we can increase our productivity and reduce our manpower to some extent to mitigate this increase.

Sure. Thank you, sir. Wish you all the best.

Thankyou

Thank you. We have a next question from the line of Pratim Roy from B& K Securities. Please go ahead.

Hi sir, thank you for the opportunity. Sir, my first question is that as I attend ed that RHI Magnesita Global Conference call where the team has guided that the overcapacity in the Indian domestic market is a big problem for the industry in Hawaii land . It can drag the growth and something like that , that sounds slightly negative. So as a leader in the refractory market in the domestic side, how we can overcome this current situation to a statistically growth part in the next couple of years? That is my first question. And the second question is that that you always mentioned that our EBITDA margin guidance will be around 15%. So how we can achieve that and what are the drivers that help us to achieve that. So if you can give a broad idea on these two particular things, how topline growth will be maintained in the situation of oversupply and the margin side, both if you can give some ideas of?

Yes, I will try to give you some idea. So one is commodity market where our competition is entering into with very aggressive pricing, we cannot stop them. Okay, this time will prevail sooner or later when they will also have a margin pressure and they will come back with the reasonable pricing. So this is one part. Second is how we can differentiate from our competition. So what we are doing is we are bringing a lot of new products into India, local for local like a thin s lab SCN, a stopper rod with different holes , cold setting mask development, random porous plug from Europe to India , chrome castable type of porous plug from Europe to India, blast furnace from Divača, Seven Refractory to India, Ankoform from Divača to India and many more products we are bringing to India which we were not

Page 11 of 19

able to sell from Europe or from America because of price competitiveness. But when we will produce this in India, this new market will open up for us. So we are developing new products. We are doing optimization of many products where we think there is a n opportunity we can really reduce our cost by different type of innovation and R&D activities. So, this, I think, will give us an edge over our conventional competition, and we will have a niche market type of product where we will have a margin advantage also. At the same time, we are trying to develop many products for commodity market, but probably it will take another 6 months or so by the time we reach out to market. So with these initiatives, I think we can turn around this and as you said, last 2, 3 years, I was very consistent and you remind me also and I'm still having a belief that 14%-15% margins are really sustainable achievable margin, and we aspire to reach to that level. That is our internal discussion all the time how we can reach to that level, and we will reach.

So, we can expect that by the beginning of second half of this Financial Year, I am talking about FY'26, so we can expect this kind of margin can be achievable. Is it a fair assumption to take?

I would say you will see from July quarter, which is the second quarter you will see upside from July onwards and by third quarter you will see that the results are coming to our expectation.

Yes, maybe I will add one more point. In Parmodji's opening remarks, we also spoke about pricing features as well because we believe that these input costs must be passed out . There's a very targeted and strict program we are also delivering which will also support with us . So, one again self -help measure as Parmodji explained in terms of targeted commodity market recipe optimization. Second, the market share development with the introduction of transfer of technology. But we are also having very intense discussion with our customers on how to pass on this input cost. Hope that gives a 360 degree perspective for you.

Okay sir. Thank you for the clarification. I just want to have another few questions. You just mentioned that the CAPEX side you are going to invest Rs. 150 crores, right? So if you can give a broad idea where we are going to expand and how much you can expect margin improvement from that and by when you can expect that will come into the book?

Whatever CAPEX we are talking about, it will actually be commissioned by end of this year or the beginning of next year because all these big equipment like presses, live press, auto clay the delivery time is 10 months to 14 months. So, this will come probably in next Financial Year, the actual tangible benefits, not this year. This year we have been spending this money, ordering and we are doing a lot of engineering discussion and all those things.

Page 12 of 19

And when this will be operational commissioned, probably our productivity will go up, our manpower cost will come down because they are modern presses, not like a 40 -year-old Dalmia presses which are in place now. So that is the idea.

So, this investment will be in this DOCL plant, right?

Mostly it will be DOCL plant. I would say it's 65%-70% and the rest is RHIMIN plant.

Yes, we also want to talk about probably the iron making center which you are excited about.

Yes, that we last time also told you guys we are creating this iron making excellence center in Jamshedpur. And again, it is a time-consuming process. We have done the trials in Europe with our raw material, with the technology transfer here. Again, we send some material, we did the trial, trials are successful, and now we are ordering those machines on Europe, which will come by the end of this year or beginning of next year. And then this excellent center for iron making will also start flying.

Okay sir, and export side, how much is currently the export contrib ution of the total sales for FY'25 and for this quarter?

It is about 10% of this quarter, maybe 11% and sometimes it 9.8% or so . So, you can take average 10%.

10%, is there any opportunity it can go up further in the next couple of years or something like that?

That is also a very important for us to grow and it is at global level also we are discussing with global team, our site team how we can increase our export also, but again same thing, maybe you will say few people are giving only excuses but the thing is this if I need to do a trial, it will take 6 months minimum and then they will give you a commercial order, small quantity order and then you are a proved supplier. So, it all takes time. So I take this for all the investors, analysts, you have supported us throughout so many years, must take it with a pinch of salt that with 3 %-4% of EBITDA Dalmia plants, we have taken it to double digit without doing much expansion or much CAPEX . So, you should have a faith and support us.

So, what is the current EBITDA margin for Dalmia also? It is around 10%-12%?

Okay, sir. Thank you, sir. I'll come back in the queue . Thank you for the detailed answer, sir.

Thank you. We have our next question from the line of Ashish Kejriwal from Nuvama Institutional Equities. Please go ahead.

Hi. Good evening, sir. Thanks for the opportunity. So, a couple of questions on the market. As you rightly pointed out that we are seeing intense competition, and I think management is very right not to disturb the market in such a way to flood it. But in this intense competition, which is maybe prevailing even in FY' 26. Is it possible to share what's your expectation of volume growth?

Yes, good evening and thank you for your support for our philosophy. Yes, I can give you, you know, in RHI itself , we have a tremendous growth. We were kicked the block, just entered one year back , We were at trial stage, but the initial results are so fantastic and satisfying to the steel industry, the blast furnace, pellet plants and DRI, now we are getting repeat order even at a higher price than our last year price. So, this will be a big lever to increase our market share and at the same time the product which I just mentioned , we are bringing the technology to India that will also be an upside. Secondly, commoditization, w e are not leaving this alone for the competition , We will also be working on it. We are already working on it like Product optimization, recipe optimization, it will definitely also add. And I believe we should be able to deliver 8 % to 10% volume growth in coming days.

So, sir, when we are talking about 8 % to 10% volume growth, we are taking into consideration that we are also going to then some hiccups in the commodity market also because now if competition is already there. Because one thing is steel margins definitely has improved after the safeguard duty. So, are you seeing in your interaction with your customer that they are somewhat easing off and giving you higher prices for the work which we are doing or still they are negotiating on a lower prices?

No, they are better placed and they are positive now. I would say I will not take the name of the customer, but I can tell you in last one month, I got a price increase of almost Rs. 11-12 crores. But the effective date is 1 st of July, 1 st of August because the long -term contract is in place. So that's why I'm saying July onwards you will see upside in margins, in volumes.

As of now, I don't have numbers with me, but yes, we can talk offline sometime after a week or so, so that we can have a number with us.

Sure, sir. No issues. And thirdly, sir, as you mentioned in your opening remark that raw material benefits, you will start getting it from second quarter. So, is it safe to assume that from second quarter we can see volume growth as well as raw material cost benefit and benefit of price increase also from the customer?

Yes, you are right.

Especially for integrated plant customers, this is absolutely a good assumption.

Understood. And in the export market, where we are having around 10%, are we seeing any green shoots available over there where we can somewhat increase our exposure, or this 8%-10% YoY volume growth is entirely on basis of domestic market?

Historically before we acquired Dalmia etc., our export revenue was about 22%-23%. It is still at that level, and I keep on saying our ambition is to take it to 30% in that in RHI Magnesita India Limited because from Dalmia plants we are not doing any export at all. So that is still there but you must realize that geopolitical situation outside India is so bad, so bad, China is dumping the refractories, here, there everywhere and now with the Trump's tariff policy, they will still be having over capacity, and our Indian competition is also increasing capacity. So, it is double value for us. How to counter it. But still, we have our own plan, and we are working on that.

Understood. And lastly, obviously, we have an external market where we have little control. But internally, are we doing something which can optimize cost further and if yes, how much one can expect that to lead to increase in margins on what period?

Yes, it is really, really a very focused area for Indian management, our R&D people, technical marketing people, they are just working on only on this optimization of recipes, reducing the cost of our products, etc. So, this is a very serious issue for us to remain relevant in the market in commodity market.

Just basically is that even to have the sustainability of these cost competitiveness, some of the CAPEX , the appropriation is for some of the recycling or secondary raw material operations as well, so that it's continuous for us.

Because in the last 2 years, we have pruned down the capacity also by maybe closing down one of the plants and making other plant more efficient. So that also could have

Page 15 of 19

helped us in lowering cost or still that's in the making because our capacity we have obviously pruned down from 525 KT to 512. So, you know, what's the road line ahead?

It is market driven. If the market is bias, if the demand is really good, and as I said, 8 % to 10% growth, we don't see in short term we do some product optimization or plant optimization or production optimization. But if the market is a bit slow, then we will definitely look into it whether we can further consolidate our operation or not. So, this is also one of our strategic discussions within RHI Magnesita.

Sure sir. Thank you and all the best sir.

Thank you. We have our next question from the line of Sahil Sanghvi from Monarch Net worth Capital. Please go ahead.

Yes, good evening, Azim sir and P armod sir. Thank you for the opportunity and good performance in such a competitive market. My question was one-fold in the export, which you have largely answered. But on second, I just wanted to understand the seasonality in the cement side of the business. Now, is it fair to say that couple of these quarters are the ones which have very large volumes and some of them don't have volumes. Is that correct? And how do you aim to ramp up the revenue contribution from Dalmia going ahead? Any plans on that please?

Sahilji, thank you very much. I was waiting for you actually. I was missing you. So, first quarter is historically very lean quarter when it comes to steel. And with second quarter starting until September, you know, it is a monsoon season. So, during monsoon season, normally cement people do the maintenance of their kilns etc because construction is slow. The output is, they are not able to sell at that pace because of monsoon. Construction of roads, bridges, housing, everything has come down to 50% level or so. So, this is the time when they do the maintenance. So, this is the time I think all the factory people, not only us, will have a chance to increase their sale in this segment.

Is this sort of a few quarters phenomenon? I mean, it's not spread across the whole year, right? Is my understanding correct on the cement volumes?

Yes, you are right. These two quarters normally are strong from say July to September or so, beginning as maybe June. I t's sometimes spill over to October. These are the strong time. And one thing more is there , I-if there is a project, one or two projects come in between, whether it's a January to March or October to December, then it is upside. If somebody is putting up a new kiln, etc., then it is almost a Rs. 50- Rs. 60 crore project. Last quarter, there was no project. In October to December quarter, there was a project. So, it

Page 16 of 19

also depends upon in which quarter project comes or if it comes in every quarter, then it's a very similar type of sale.

Just to give you some numbers around this, Sahil, if you look at our Q3, we said we had a record revenue in the last quarter. That's been also shipment as well, again, contributed by cement volume. And as Parmodji mentioned, also for some of the project orders in our iron making business that we ended up delivering. But these project business are quite absolutely, I will not call it seasonal, I will call it sporadic because it depends upon when the customer wants to commission whereas, cement is quite seasonal and predictable if that answers your question.

Yes, that does and just my second question on the Dalmia revenues or the volumes on an annual basis, I mean how do we see this asset ramping up in the next 2-3 years? What will be the few factors which will help us do this? I understand there is a refurbishment or you're bringing in new technology and new machinery, but then what needs to be done on the marketing front or on the customer front or anything on the product front over here at Dalmia?

So, in coming months you will see a lot of local for local production which now is coming from China or Europe particularly for cement, fired magnesia bricks etc. We have already done the technology transfer. We produce 500 tons. We supply to two customers. Performance is under evaluation. And within next 2-3 months, we will produce another 1,000 tons and supply to 4 -5 customers. So, this year probably, calendar year, is the trial time. And from Jan onward, if trials went well, probably it will add Rs. 100 crores for next year in that particular segment only. And then we have a strong market also for magnesium carbon and our Cuttack plant is full running at full capacity and now from last month we start producing in Rajgangpur Dalmia plant about 600-700 ton of this magnesium carbon bricks also for steel industry which we will ramp up to 1000 ton every month. So that will also give us about Rs. 100 crore or so next year. So, these are the upside apart from what product I told you, high -end product which we are bringing to India. Mostly , it will be in Jamshedpur or in Bhiwadi or in Vizag plant or few in Rajgangpur also. But it will be spread, not only in Dalmia plant.

Exciting sir, very exciting. Thank you so much for this information and very all the best sir.

Thank you, thank you Sahil.

Hi, thank you for the opportunity. So, I had a few questions that were broadly around the industry. You mentioned that there has been a significant overcapacity in the industry. So, if you could highlight what sort of industry capacity currently is there and going ahead, any sort of expansions are that in coming in? And secondly, considering the growth that we expect in the end user industry, when do you think this overcapacity situation normalizes? That is the first question.

Basically on paper, the projects announced by our competition or refractory industry is about 150,000 tons to 170,000 tons, which will come up in next one year or so. India is perceived to be growth market and every company, whether it's global or local, want to take the advantage of this growth. So everybody is putting up capacity. We acquired two, three companies definitely, but we have not added the capacity. We are working on optimizing the production and plant. maybe in coming days we will think of further how we can consolidate, not increase the capacity of greenfield. So we have our own plans how to consolidate and give right products to the market.

Got it. Understood. But is it fair to say that next 2 , 3 years, even 2 , 3 years out, this overcapacity situation will continue to play out or do you think the situation will be much better, say 2-3 years out, once the demand comes in?

I would say, Chintanji, very frankly, it is a matter of fittest survival. So the companies who will really deliver consistent product with the right cost will survive. In 2005 to 2007, this type of mushrooming has also happened. And in next 4 years' time, all these small companies vanish ed. Every company has their own strengths and weaknesses just to enter the market seeing that R HI Magnesita is growing in this segment or Vesuvius is growing in this segment, why not we? So it is a wishful thinking and maybe people have earned a lot of money to now spend on these expansions. But we are not too much worried about this. We have to c orrect our house, have to remain ahead of our competition with innovation, R&D activities, product optimization. So we have to be cautious but not overly worried about this.

Just kind of underline some of the things where Parmodji remarked early just to kind of remind everyone, in cement, we are the only providers who can give end to end solution , Let it be basic , non-basics or castables. In case of steel, most of the major expansion is on the blast furnace route. And here is where we did already establish ourselves in the iron making part and with the product transfers and CAPEX investment, we are well poised to take advantage of it. Again, we have built it up in the last 2 years to have this capability, not as a spur of the moment as Parmodji is mentioning, just to connect it with what's happening now in R&D from our side.

Page 18 of 19

Got it, understood. The second question is regarding Pramod sir was mentioning that there is a sort of commoditization that has been happening in the refractories . So, just wanted to understand this better. So what has actually led to this? Because earlier, understanding was that considering the cost of the end customer and the criticality of refractories , I mean, customers are pretty much sticky with the best sort of supplier, best quality. But now basically what is leading to this commodization? What is driving this change from a customer perspective that they're willing to shift the customer just because th ey offer some lower pricing? So just if you can help us understand.

So I can put it in two baskets. One is specialized product, very critical product, which we are producing in flow control area and Vesuvius is producing in flow control area, that has not commoditized. That's why you see very consistent performance of Vesuvius and RHI Magnesita India Limited in that segment. Our margins before we acquired Dalmia was about 17%-18% EBITDA. We still are enjoying that type of EBITDA when we take out those flow control products. So that market is very consistent, very product and quality sensitive. The customers don't play around with that segment. Then comes to commodity market when it comes to ladle bricks, etc. Tundish, working linings where the customer thinks, okay, I have a guarantee of 120 heat . So if somebody is from China or from local and number of, now 12 - 13 small players are there for ladle b ricks for steel industry. So customer has a guarantee. If you know small player is giving 20% or 10% or 50% lower price and agreeing for that guarantee or doesn't matter to the customer. If the heat rate of 120 like if it will come down to 110, they will deduct the pro -rata payment also. So their cost is coming down and from last 7 -8 months everybody knows steel industry was also under pressure because of import from China etc. And now with this 12% duty on some special steel products, that they are breathing a little more easily and they probably will think again how to handle the situation but they were under pressure so they wanted to control their expenses , but in particular segment here they don't have productivity impacting issues.

Got it understood. And if you can give this mix between specialty and commodity that would be helpful for all of us.

Normally, specialty products are to the tune of 25% to 30% of total steel. Okay.

Okay. Got it. Understood. This is the last question. I mean, if I see a presentation of the previous quarter and current quarter, so if we see the requirement of refractories for say one ton of steel, I see that previous quarter mentioned was 10 to 15 kg and in the current, you mentioned 8 to 13 kg. So I mean, is there any structural change here in terms of the requirement of refractories?

Page 19 of 19

First of all, great observation. Very few people have picked it up. What we have done this time is that we have split the refractory consumption into steel making and iron making. So if you compare the last time, you will not see the iron numbers because it's a focused area, so you see the iron making numbers, the 10 kilograms minus eight, 2 kilograms have gone there just to kind of to show the growth potential.

Yes, at the same time, the steel industry keep on asking better and better products when it comes to high-end products. So they want that continued casting. Sequence level from now, I'll give you an example, Arcelor Mittal, 8 months back they were having 12 hour s casting time. And for things like, when we went for the trial, it was very successful. Then they asked 20 hours casting time. So it took us 6 months to develop that product. And now that's not really developed, but now they're saying 24 hours. So the factory consumption continuously coming down in steel industry. About 10 years back, it was 15-16 kg. Now it has 8 to 13 kg. 13 kg is the plant which are really not taking care of their refractory, their solution etc. and going for commodity business like this, the low end products, buying from anybody, the consumption will go up. Upfront they will be thinking that I am buying cheaper, but eventually the life will be less, the consumption will be more. But all efficient plants as of now are running at 8 to 9 kgs refractory consumption.

Got it, understood. Thank you and all the best.

Thank you, Chintanji.

Thank you. Ladies and gentlemen, that would be the last question for today. And I now hand the conference over to the management for closing comments.

Thank you. Thank you very much, dear investors, shareholders, analysts. Your feedbacks are always very welcome. I t gave us the thoughts how we are working, where we need to improve and we always take every comment in a positive way. So, we will keep on working on improving our performance. But as I said, the fundamentals of RHI Magnesita are very strong and we believe in that, the global management believe in that and I think you people will also believe in our thought process and keep supporting us and we will deliver much better results in coming days. Thank you so much.

Thank you.

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