Bansal Wire Industries Ltd (NSE: BANSALWIRE) Q2 2025 Earnings Call dated Nov. 12, 2024
Corporate Participants:
Darshan Mankad — Investor Relations, Adfactors PR
Pranav Bansal — Managing Director & Chief Executive Officer
CA Ghanshyam Das Gujrati — Chief Financial Officer
Analysts:
Aditya Bhartia — Analyst
Praveen Jadhav — Analyst
Arpit Maheshwari — Analyst
Shraddha — Analyst
Veenit Pasad — Analyst
Deep Mehta — Analyst
Rahil Shah — Analyst
Deepak Lalwani — Analyst
Depesh Kashyap — Analyst
Manoj Kajni — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to the Q2 and H1 FY ’25 Conference Call of Bansal Wire Industries Limited. From the management, we have Mr. Pranav Bansal, MD and CEO; and Mr. Ghanshyam Gujrati, CFO to take the discussion forward. We also have an Investor Relations team from Adfactors.
As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Mr. Darshan Mankad from Adfactors PR for opening remarks. Thank you. And over to you.
Darshan Mankad — Investor Relations, Adfactors PR
Thank you, Michelle. Good afternoon, everyone. We welcome you to the second quarter and first year ended September 30, 2024 earnings call of Bansal Wire Industries Limited. Before we begin the earnings call, I would like to mention that some of the statements made during today’s call might be forward-looking in nature and hence it may involve recent uncertainties including those related to the future financial and operating performance. Please bear with us if there is a call drop during the course of the conference call. We would ensure the call is reconnected the soonest.
I would now hand over the call to Mr. Pranav Bansal, MD and CEO, for his opening comments. Over to you, sir.
Pranav Bansal — Managing Director & Chief Executive Officer
Thank you, Darshan. Good afternoon everyone and welcome to the earnings call of our second quarter and half year ended September 30. I am delighted to address you today as we continue building on the momentum set earlier this year after our listing. I hope you all had a great festive time with your families. On behalf of Bansal Wire Industries Limited, accept our best wishes to all of you and your family members.
I trust you had a chance to review our results press releases and investor presentation, which are available on the stock exchange and our website. I have with me our CFO, Mr. Ghanshyam Das Gujrati to answer your queries.
For those new to our company, Bansal Wire Industries Limited operates five manufacturing facilities. We produce over 3,000 SKUs focusing on high carbon wire, mild steel wire and stainless steel wire as our key segment. We are right now on a journey of establishing our fourth vertical which is the specialty wire vertical. These products serve a wide range of industries including automotive, infra, consumer durable, general engineering and various others. Our commitment to quality and customization has helped us build a diverse and loyal customer base of over 5,000 customers. As a leading player in the steel and stainless steel wire industry, Bansal Wire Industries Limited is positioned to leverage growing opportunities in all our concerned sectors. In the second quarter of FY ’25 also, we have achieved our highest ever quarterly revenue driven by strong demand across all our key segments like automotive, construction and general engineering.
In the last quarter, we proudly announced our operational commencement of the Dadri facility, a step — a significant step towards expanding our total production capacity to 600,000 tons, and we are firmly on track for this financial year to fully operationalize this facility within the stipulated time frame, a development that is poised to deliver a well orchestrated boost to our production volume. Furthermore, our plans of specialty wire production is also on track, which will help us expand our margins in the future. This strategic capacity expansion underscores our commitment to capturing new growth opportunities and reinforcing our position in the market.
On the export front as well, the business continues to flourish. During the first half, export accounted for about 10% of our total revenue. The global demand highlights a strong reputation I have for quality and timely delivery in international markets.
I will now hand over our call to our CFO, Mr. Ghanshyam Das Gujrati, who will update you on our financials of the quarter and first half. Thank you.
CA Ghanshyam Das Gujrati — Chief Financial Officer
Thank you. Pranav, sir. Good evening, everyone. I’d like to share the summary of the second quarter financial performance with you. The result for the Q2 financial year ’25, our revenue grew by 36.8% year-on-year basis to INR825.45 crores. EBITDA surged 78.9% year-on-year basis to INR68.1 crore. Net profit after tax for the quarter stood at INR40.06 crore, up by 120.8 crores [Phonetic] year-on-year basis. In the previous quarter of year-on-year basis, it was 18.1% profit was there. The first half, the revenue stood at INR1,642.36 crore, higher by 42.6% and EBITDA rose 99.2% to INR130.34 crores, while the net profit has jumped 100% to INR71.56 crore. We continue to focus on the cost optimization measures and work on diversifying our product portfolio as well as enhance contribution from value-added products to add our margins. We are happy to report that EBITDA and net profit margin for quarter two has expanded by 192 basis points and 193 basis points on year-on-year basis. For the first half too, we have seen margins rise by 224 basis point for EBITDA and 127 basis point for the net profit. As on September 30th, 2024, we had a comfortable equity — debt-equity ratio at 0.21 times.
We will grow — we will now open for the forum for Q&A.
Questions and Answers:
Operator
Thank you very much, sir. We will now begin with the question-and-answer session. [Operator Instructions] The first question is from the line of Aditya Bhartia from Investec. Please go ahead.
Aditya Bhartia
Hi, good afternoon, Pranav. My first question is on volumes that we have done in this particular quarter. If you could give us some indication of what those volumes were and how low carbon and high carbon would have fared this quarter.
Pranav Bansal
Sure. Good afternoon. So on the volume front, we did about 80,000 tons this quarter, in which high carbon was about 30,000 tons, low carbon was 27,000 and stainless steel was around 21,000. So in high carbon, we were able to increase above 10% from last quarter itself, which is the main reason why our EBITDA margin has also increased as well.
Aditya Bhartia
Understood, understood. And Pranav, how much of group volumes that we were looking to kind of consolidate in the main company would have played out until now? And what’s the roadmap for the consolidation going forward?
Pranav Bansal
Sure. So I would say, in the last call also I updated you that in the second quarter, we are looking at consolidating Bansal Steel and Power. That was the target. And from the third quarter itself, we were looking to fully consolidate Balaji and Bansal High Carbons are the other two companies that were left. So we were already on track. In the last quarter, we have done 100% acquisition of Bansal Steel and Power. And by the end of last quarter itself, we have done 100% consolidation, almost 100% consolidation of Bansal High Carbon and Balaji. Therefore, from this quarter onwards, we already have most of the numbers of Balaji and Bansal High Carbon with us. We are expecting by the end of third quarter, the sale from Balaji and Bansal High Carbon will be almost zero.
Aditya Bhartia
Understood. And last bit, how exactly is the capacity ramp-up that is taking place at Dadri facility? How much capacity would have become operational by now? And how should we think about improving utilization in the next few quarters? The reason why I’m also asking this question is on a sequential basis, this quarter we haven’t seen a massive growth. There has been a decent growth both in revenues and volumes, but it’s not been a very significant one. So going forward, should we be anticipating an expedited volume ramp-up happening at the Dadri facility?
Pranav Bansal
Sure. So within this quarter, any growth in volume has come from only Dadri. In fact, the second quarter generally is a quarter where our capacity utilization goes down a little bit because of some labor issues that we face always in the second quarter. But any increase in production or any increase in sale has come because of the Dadri facility. By the end of this quarter, we were already at 20% capacity utilization, close to 20% capacity utilization in Dadri. And I would say, again, for the first month itself in this quarter, we have done a lot better. So capacity utilization front, it is going as per plan. I would say in the third quarter, we are looking at a big difference in the Dadri facility itself because most of our units have now been commissioned. So it is only a matter of taking that production in.
Aditya Bhartia
Understood. Thank you so much.
Operator
Thank you. We’ll take the next question from the line of Praveen Jadhav, an individual investor. Please go ahead.
Praveen Jadhav
Hello, sir. Yeah. I wanted to know like how much is the steel prices which have come down in the last quarter which has helped in the profitability of the company?
Pranav Bansal
Very good question, sir. I do not have the exact figures with me, but yes, definitely, even if you look at our revenues, although our volume has increased, our revenue has not. It is only because of the steel prices coming down, which is the reason there is definitely an increase in margin because of the steel prices. From a very basic number, if you see, our volume has grown by about 10% whereas our revenue is flat. So there is definitely a difference of at least 10% that has come there, but for the exact information, we will have to provide to you later.
Praveen Jadhav
Okay, sir. Thank you. That’s it from my side.
Operator
Thank you. Thank you. [Operator Instructions] The next question is from the line of Arpit Maheshwari from JMFPE. Please go ahead.
Arpit Maheshwari
[Indecipherable]
Operator
Mr. Maheshwari, you are not audible.
Arpit Maheshwari
Sorry. Can you hear me now?
Operator
Yes, please proceed.
Arpit Maheshwari
Just wanted to understand what kind of growth are we seeing in the automobile space and what is driving that growth?
Pranav Bansal
Sir, automotive, I would say is one of the main sectors where our product is used, and here we are seeing two or three different types of growth, especially for us. First is of course we continue to diversify our product offering. So there are some or the other SKUs that we keep on adding in our product vertical, which is not just for automotive, for other industries as well. Other than that, the two-wheeler industry has been doing well. Therefore we see a good growth, in which the growth has also come from acquiring market share. As and when we have more capacity, we are able to meet the demand that we have from our existing customers. So it is all a matter of either acquiring new customers or increasing our share within the existing customers as well.
Arpit Maheshwari
Understood. Thank you.
Operator
Thank you. [Operator Instructions] The next question is from the line of Shraddha from Share India. Please go ahead.
Shraddha
Hello. Am I audible?
Operator
No, ma’am. Your audio is feeble. May I request you to use your handset and increase the volume a little bit?
Shraddha
Hello?
Operator
Yes, ma’am, please proceed.
Shraddha
Yeah, yeah. So I just wanted a confirmation or a basic growth guidance by the company or do they stick to the previous guidance?
Pranav Bansal
Sorry, ma’am. Can you say that again?
Shraddha
Future guidance.
Pranav Bansal
So ma’am, as of now, all I can say is that we have already — in the first half itself, we have done a good growth. Compared to last year, we’ve done about 120% growth in PAT, or even for the quarter, we’ve done about 100% growth in PAT and 100% growth in EBITDA. And this has come from basically increased margin and not much from the Dadri expansion, which, for the first two quarters, has not been, in terms of numbers, that much. And the third and fourth quarter, of course, we are expecting the Dadri facility also to ramp up. So we are expecting a little better growth as compared to the first two quarters in the next two quarters.
Shraddha
Any guidance on the EBITDA?
Pranav Bansal
EBITDA also, ma’am, if you see our current trend for the first year, we are expecting something better to happen in the third and fourth quarter solely because the ramp-up of Dadri will happen.
Shraddha
Okay, sure. Thank you so much. Also, any plans to have a higher margin product and majorly for which sectors?
Pranav Bansal
Sure, ma’am. So of course, as I said, we are adding our fourth vertical, which is specialty wire and which was set to start from quarter three of this year, and we are on track. In fact, this month we are expecting one line of bead wire to be commissioned fully and the next month the other line of steel cord also to be commissioned, which are the two main areas in which steel cord is the main focus area for us in specialty wire, which will help us increase our margin profile. Here the plan is on track. From the first — from the last quarter of this year, we should be seeing some production and some sales happening there. And for the future also, we are depending on this segment very aggressively, and we want to grow with this product, steel rod.
Shraddha
Sure, sir. Actually I wanted to understand which sectors majorly would be having a higher margin compared to the other normal sectors.
Pranav Bansal
So if you look at the specialty wire vertical, the steel cord and bead wire products, these are comparatively higher margin products as compared to our existing vertical of low carbon, high carbon, and stainless steel. So as and when we are able to ramp up the specialty wire vertical, our mix of margin will completely change. Other than that also, ma’am, one thing in our business model is that honestly the percentage of margin is not very relevant when it comes to our business model. What we look at is per ton EBITDA that we get because on a percentage basis, it will always change depending on the cost of my input. For example, in the last quarter, my cost of input has decreased. Therefore the percentage has also increased. So these kind of differences, we will always see, but even on a percentage basis and a per ton basis, specialty wire is a much higher margin business. We will only start that from the last quarter of this year and next year and the coming years, we are betting heavily on this product.
Shraddha
Okay, sure. Thank you so much.
Operator
Thank you. We’ll take the next question from the line of Veenit Pasad from Investec. Please go ahead.
Veenit Pasad
Hi, Pranav. Good afternoon. Pranav, just one clarification. Is the understanding correct that we haven’t started shifting volumes from Balaji and Bansal High Carbon yet at least until it’s Q2 and it’s only in the third quarter is when we have started moving volumes from these two entities to that piece?
Pranav Bansal
Yeah. Hi. Good afternoon, sir. So sir, in fact, revenues and volumes from Balaji and Bansal High Carbon, we started shifting in the first quarter itself. This is why in the first quarter itself, you saw a good jump in revenue as well as volume, but yes, we have not ramped up any volume shifting in the second quarter only because that the production in Dadri itself did not start. So it was purely a job work model that we did, but by the end of the second quarter, we have concluded the job work model. Therefore, in quarter three, we are looking at almost all volumes and revenue from Balaji and Bansal High Carbon to come into Bansal Wire.
Veenit Pasad
Understood. So can you just quantify what proportion of the work is being done currently on job work? How much of it is done by Balaji and Bansal High Carbon themselves? And what proportion is yet to be moved directly to Dadri?
Pranav Bansal
So if you look at — I mean, today, almost 95% of sale is on job work. So there is no revenue of Balaji and Bansal High Carbon today. 5% or less is being done by Balaji and Bansal High Carbon.
Veenit Pasad
So how much was it in the last quarter?
Pranav Bansal
Sir, I do not have the right numbers of Balaji and Bansal High Carbon with me in the last quarter, but we can give that information to you separately.
Veenit Pasad
Okay, sure, sure. And Pranav, on the working capital front, we were planning to implement some of the initiatives around vendor financing, bill discounting etc., etc.. Have we finalized any plans out there? We were thinking on these fronts. Have we finalized any plans? Any progress on that front?
Pranav Bansal
Yeah, sir. So we have already tied up some limits for discounting and other various tools. We are only waiting for the revenue, which will come in the third quarter of this year, this quarter, to revenue to increase from Balaji and Bansal High Carbon, and then we’ll start utilizing those limits as well. As of now in the last quarter, because there was no increase in revenue, we were able to manage with the current resource, but from the third and fourth quarter, you will see some of that being utilized itself.
Veenit Pasad
Understood, understood. Thank you. Thank you so much, Pranav.
Pranav Bansal
Thank you.
Operator
Thank you. We’ll take the next question from the line of Deep Mehta from Bank of India Mutual Fund. Please go ahead.
Deep Mehta
Hi, sir. Thank you for the opportunity and congratulations for very good numbers. Couple of questions. First, regarding the transfer of volume from group companies to Dadri. As we shift that volume in Q3, do we foresee any margin expansion because we will be moving from slightly inefficient plant to the brand new efficient plant?
Pranav Bansal
Sure, sir. So in terms of percentage, sir, we are not looking at any margin expansion because of the products that we are shifting there are already low margin businesses. So the margin in Balaji and Bansal High Carbon in a percentage base is already lower than Bansal Wire average. So we are not looking in percentage any increase in margin, but yes, in absolute figures, we are definitely looking at some good increase, which will come from quarter three.
Deep Mehta
Understood, sir. And secondly, if you can help us with your progress in your backward integration in stainless steel rods. How much is the progress and where can we expect that?
Pranav Bansal
So sir, in the last quarter, we have formed a new subsidiary, a wholly-owned subsidiary for this particular project that is Bansal — BWI Steels, and we are actively looking for land parcels in the area of Rajasthan as well as Ahmedabad. We have identified four or five different parcels which we are yet to finalize. We are looking to finalize somewhere between November and December. Apart from that, we are also in the middle of talking to various different vendors and trying to finalize some of the long lead items, for example, a rolling mill which would take about 12 to 15 months to deliver. So we are trying to finalize that as well. So I mean, we are trying our best to speed up the whole process as much as we can.
Deep Mehta
Understood, sir. Very clear. And just one question. Regarding our specialty wire business, steel cord business, how has been the response vis-a-vis clients and how should we look at it? Are they looking at approval and how much time will it take? Because now from Q3, we will start the production.
Pranav Bansal
Yes, sir. So as far as approval goes, once we are able to start our production, only then can we start the approval process. So our line is set to commission next month. Hopefully, in the first half of next month, we will have something operational. After that, we will start inviting customers for the approval process, which will take another one, one and a half year to get as an approval in steel cord, but the byproduct is what we will start off with in the last quarter of this year. For that, the approval process in some customers is maybe a month; in others, not even that. So we will start off with that and within a year and a half, we are looking at getting some approval to start that product.
Deep Mehta
Very clear, sir. That’s all from me. Thank you.
Operator
Thank you. We’ll take the next question from the line of Rahil Shah from Crown Capital. Please go ahead.
Rahil Shah
Hello. Hi, can you hear me?
Operator
Yes, sir. Please proceed.
Rahil Shah
Yes. Hi, Mr. Bansal. I believe in the last call, you had mentioned that every year you look at growing at the rate of 25%, 30%. Correct? But having seen that you have done more than 42% year-on-year growth in H1 itself, do you expect this momentum can continue in H2 as well?
Pranav Bansal
So sir, as I said, most of this growth has come from margin expansion whereas volume expansion has not really contributed here in the first half of this year. Second half of this year, we are looking at major volume expansion. Therefore you will see a good growth in top line. As far as EBITDA and profitability goes, I mean, it depends on the market scenario, but we are looking at some improvement here as well.
Rahil Shah
So when you say good growth, so can you put a number to it?
Pranav Bansal
Sir, right now it will be difficult for me to quantify or give you a number, but I would say we will try and continue to have the same pattern of growth every quarter that we have till now.
Rahil Shah
And with regards to this growth, like so where is exactly the demand coming from? Which particular sectors are contributing?
Pranav Bansal
Sir, here the demand is honestly coming from all sectors. I mean, our business model has always been to not be dependent on one particular sector. That is why we have diversified ourselves in terms of the industries that we serve and even in terms of the customers that we serve. Therefore, we are not really dependent on one particular product. Wherever — however we are growing today is only because we are able to increase our volume and we are able to service each and every sector that we already have.
Rahil Shah
Okay. And lastly, in the last call again, I believe you had made a statement that you expect to see or you will see an 80% increase in absolute EBITDA in FY ’25 or FY ’24 numbers. So can you please explain how — what makes you say that and how it will happen?
Pranav Bansal
Sure, sir. So if you look at our balance sheet for last year, the numbers were only of Bansal Wire and there was a little bit of consolidation between Bansal Steel and Power and Bansal Wire, whereas for this year, there is a 100% consolidation. Therefore, the numbers of Bansal Steel and Power, which were about INR60 crore of EBITDA last year, will come up straight here in Bansal Wire. Other than that, the consolidation initiatives that we have taken between Balaji and Bansal High Carbon will also add to that volume and will also add to that EBITDA. The third initiative is the Dadri facility, which we are trying to fully operationalize by the end of this year. From this facility, our capacity will go from about 3.5 lakh tons combined today to about 6 lakh tons. Therefore, all of these three factors combined, we are looking at a good growth.
Rahil Shah
Okay. And hence you say that 80% increase in EBITDA, you expect that to happen?
Pranav Bansal
Yeah. I will have to, I mean, get back to you on the 80%, but yes, we see a good growth.
Rahil Shah
Okay. Okay, got it. Okay. That’s it for now. Thank you and all the best.
Operator
Thank you. [Operator Instructions] The next question is from the line of Deepak Lalwani from Unifi Capital. Please go ahead.
Deepak Lalwani
Hi, Pranav. Thank you for the opportunity. See, my first question was on your volume. So you mentioned 80,000. Can you break it up into high carbon, low carbon and stainless steel?
Pranav Bansal
Yeah. Hi, sir. Sure. So out of 80,000 tons, 30,000 tons was high carbon. About 27,000 tons was mild steel and 21,000, 22,000 ton was stainless steel.
Deepak Lalwani
Got it. And Pranav, if you could give us a sense of what would be the number last year as well, in Q2 of last year.
Pranav Bansal
In Q2 last year. Sir, I do not have the numbers right now with me, but I can — we can give that to you later.
Deepak Lalwani
Sure, sure. And secondly, my question was on the EBITDA per ton that we make on each of these segments. So if you can broadly spell out what is the per ton EBITDA that we make in high carbon, low carbon and stainless.
Pranav Bansal
Sir, for the particular quarter two, we do not have those numbers.
Deepak Lalwani
Okay. Let me reframe. Just a broad range that you make on your products, just wanted to know that range.
Pranav Bansal
Sir, in general, we look at high carbon to be about a INR10 a kg EBITDA business. Mild steel, stainless steel to range between INR4 to INR7 a kg EBITDA.
Deepak Lalwani
And stainless?
Pranav Bansal
Stainless also ranging between INR7, INR8 a kg kind of an EBITDA.
Deepak Lalwani
Okay. And sir, we have done about 1.56 lakh volume in the first half. So in this, our capacity was just the existing 2.50 lakh, right? We did not have Dadri in the volume that we have done, right?
Pranav Bansal
So sir, even in the first quarter, we had a little bit of volume coming from Dadri, which was 3,000, 2,000 tons. In this quarter also, we had about 6,000, 7,000 tons coming from Dadri.
Deepak Lalwani
Okay. 6,000, 7,000 this quarter and the first quarter, you said was how much?
Pranav Bansal
2,000 tons.
Deepak Lalwani
2,000. Okay. So 8,000 from Dadri. Okay. And sir, the Dadri capacity is how big and how much should we expect to commercialize by December and March?
Pranav Bansal
Sir, Dadri as a whole is 3.5 lakh tons, out of which, as I said last — till about last quarter — last month of last quarter, we were already at 20% capacity utilization, close to 20% capacity utilization, and we are looking at bringing this whole capacity or at least being able to operationalize this whole capacity within this financial year. So by end of this year, we will have 100% of capacity available for us to sell.
Deepak Lalwani
Okay. Okay, got it. And when we speak about the other private company getting consolidated here, so — and you also mentioned that Dadri goes to 100%, so should we expect these volumes to come in Q3 and Q4 completely or will it spill to the next year as well?
Pranav Bansal
Sir, It will definitely spill to the next year because Dadri ramp-up will not be 100% within this year, actual sales. It is only the capacity that will be available, whereas Balaji and Bansal High Carbon, the two companies that we are consolidating, we are looking at those numbers coming in a 100% within this year. So there will not — there will be no spillover for that quarter on that number.
Deepak Lalwani
Okay. So Balaji High Carbon and — sorry, Bansal High Carbon and Balaji comes in the next two quarters and Dadri ramp-up will keep happening. That’s an organic –, okay. Understood. Got it, sir. Those were my questions. Thank you.
Pranav Bansal
Thank you.
Operator
Thank you. We will take the next question from the line of Depesh Kashyap from Invesco. Please go ahead.
Depesh Kashyap
Yeah. Hi, Pranav. Congratulations for good results and thanks for taking my questions. There was some confusion regarding the volume numbers. I think the last participant was also asking about the last year volume. So you can share whenever it is possible, but just wanted to understand, in the last year, was the BSPL integrated in the numbers or not?
Pranav Bansal
Sir, in the last year, Bansal Steel and Power was only integrated from December. Therefore the numbers of Bansal Steel and Power is only from December. For the first eight months, there was only Bansal Wire standalone.
Depesh Kashyap
Okay, okay. So this year and this quarter, basically we have extra volumes from BSPL plus the integration, the job work that you have given to other two companies, like Balaji Wire and those kind of. So –.
Pranav Bansal
Absolutely.
Depesh Kashyap
— the volume numbers are not comparable, right? That is how to look at it.
Pranav Bansal
Yes, absolutely. Although, Ghanshyam ji, can you give us the volume numbers that we did last year as a whole?
CA Ghanshyam Das Gujrati
It was 208 lakh tons.
Depesh Kashyap
Sorry, sir. Can you repeat? It was not clear.
CA Ghanshyam Das Gujrati
It was 208 lakhs. 208 lakhs.
Depesh Kashyap
Sorry. Pranav, sir, can you repeat? I am not able to hear his voice. I think he’s a little bit away from the mic.
CA Ghanshyam Das Gujrati
208 lakhs. 208 lakh tons.
Pranav Bansal
So 2.08 lakh tons.
CA Ghanshyam Das Gujrati
Sorry, 2.08. It was 2.08 lakh.
Depesh Kashyap
2.08 lakh tons for the entire year FY ’24 and you say from December, BSPL was integrated. So this was having only one quarter of BSPL.
CA Ghanshyam Das Gujrati
Yeah.
Depesh Kashyap
Okay. Okay. Understood, understood. And moving on, if — so quarter-on-quarter comparison is a good metric to look at. So if I look at these two numbers, right, so there is around 5% kind of a volume growth maybe that you have seen in this quarter, but when I look at your EBITDA per ton, it is slightly flattish, whereas the numbers that you gave, the high carbon volume has increased. So just want to understand despite high carbon volume increasing by 10%, 11%, your EBITDA per ton is still flattish. So anything to read in this?
Pranav Bansal
So sir, our EBITDA on the quarter basis has increased by about 10%, whereas our volume has only increased by about 5%. So there is definitely an increase in per ton EBITDA overall also.
Depesh Kashyap
Okay. So the volume number that I have, sorry, just to refresh the volume number going around, 80,000 is the number that you gave for this quarter. The last quarter it was 76,000, right? If I’m correct.
Pranav Bansal
Yes.
Depesh Kashyap
Okay. So 5% increase in volume and basically 5% increase in EBITDA, so that means your EBITDA per ton was –.
Pranav Bansal
10% increase in EBITDA.
Depesh Kashyap
10% increase in EBITDA. Okay, sure. I’ll check my numbers again. Anyway. So understood. And then your — the specialty steel that you talked about, sir, obviously, steel cord wire will commercialize in a month or so, you have told. But apart from that, your other bead wire and your hose wire thing, has that started contributing or not?
Pranav Bansal
Sir, within this month we are looking at commercialization. So we are looking at some quantity being produced and sold in bead wire.
Depesh Kashyap
Okay, okay. And that will be how much capacity, sir, bead wire? Is it separate for –.
Pranav Bansal
Bead wire, we are adding about 30,000 tons annual capacity.
Depesh Kashyap
30,000 tons annual capacity.
Pranav Bansal
Which will be completely operationalized within this month.
Depesh Kashyap
Understood. And after all this expansion by the end of the year, the total capacity that you will be having is 7 lakh tons, right, after everything that happens?
Pranav Bansal
6 lakhs. So the starting of this year, we started with 2.5 lakh tons and we will end with 6 lakh tons.
Depesh Kashyap
Understood. Got it. Thank you, Pranav. Thanks for your time.
Pranav Bansal
Thank you.
Operator
Thank you. We’ll take the next question from the line of Manoj Kajni [Phonetic] from Kajni [Phonetic] Family Office. Please go ahead.
Manoj Kajni
Hello. Hi, sir. Good set of numbers. I would like to congratulate you. Sir, I just wanted to ask what would be the investment in Dadri from our internal accruals?
Pranav Bansal
Sir, the total capex that we are doing in Dadri was about INR500 crores, INR550 crores. Out of that, from internal accruals. I would ask Mr. Ghanshyam to answer this.
Manoj Kajni
Okay, sir. And sir, what is the international — I mean, how many percentage of the raw materials are taken from international states?
Pranav Bansal
Almost zero, sir. All our raw material is sourced locally. So we don’t import.
Manoj Kajni
Okay. So even domestically, the prices are stable or I mean is there any volatility?
Pranav Bansal
In the last quarter itself, the prices decreased. So we — even though in the last quarter, it was a little tough for us because we booked some losses in stock, we were able to maintain our EBITDA. Therefore, you also do not see a good revenue number.
Manoj Kajni
So sir, is there any contracts that we signed for the same, like just to like safeguard ourselves from the volatility?
Pranav Bansal
So sir, we have what we would like to call a kind of a natural hedge in our business model because whatever orders or whatever raw material we buy, we also book orders with that simultaneously. So our prices of raw material as well as finish stock — finish orders are always there. The issue is only bookkeeping because whatever stock we have, at one particular given time, if you look at when the prices of raw material was at an all-time high or at a lower rate, only for bookkeeping purpose, the valuation will differ [Speech Overlap] and all stock that we have is booked with orders on a fixed price.
Manoj Kajni
Understood. That really helps, sir. And lastly, just wanted to ask, sir, what would be our role, like, how would we facilitate our customers in the agriculture sector? I mean, ours in the — yeah, sorry.
Pranav Bansal
Sir, we have various different applications in agri. The two or three main applications that we have is first of course fencing, which you will see in all your agricultural land for protection. And the second would be barbed wire and the third would be wires which are used for grape farming. So these are the three main applications that we have in agri. We have a good set of distributors and good set of retailers, especially in the state of Gujarat where we are doing a kind of a B2C model, which is the only product that we sell in a B2C segment.
Manoj Kajni
Understood, sir. Understood. That was really helpful, sir. Thank you so much and congrats once again.
Operator
Thank you. [Operator Instructions] The next question is from the line of Praveen Jadhav, an individual investor. Please go ahead.
Praveen Jadhav
Hello sir. I wanted to know like what is your export percentage of the sales you have and are you trying to increase your sales for exports?
Pranav Bansal
Sir, our percentage for export in the last quarter was about 10%, and this is a number that has not grown as much as our regular sales because of the geopolitical situation that we faced in the last two years. But from this quarter itself, we are seeing good momentum here. Although our business model is not dependent on export, it is a business model where we focus more on domestic, but export as a segment, if you leave the last two years, has grown at about 100% every year before that. So we see a good traction for us in export, but it is not somewhere — something that we are dependent on.
Praveen Jadhav
Okay, sir. Thank you.
Operator
Thank you. [Operator Instructions] As there are no further questions, I would now like to hand the conference over to Mr. Pranav Bansal for closing comments. Over to you, sir.
Pranav Bansal
Yeah. Thank you, everyone, for attending this investor call. I hope we’ve answered all your questions. For those that we do not have the numbers, we will send it to you later. Thank you again for joining. Looking forward to your continued support in the future as well.
Operator
[Operator Closing Remarks]