Maharashtra Seamless Ltd (NSE: MAHSEAMLES) Q3 2025 Earnings Call dated Jan. 28, 2025
Corporate Participants:
Kaushal Bengani — Deputy General Manager, Investor Relations & Finance
Analysts:
Vikash Singh — Moderator
Dhaval Shah — Analyst
Shubham Kadhi — Analyst
Mohammed Farooq Umar — Analyst
Rishi Solanki — Analyst
Unidentified Participant
Vikas Kasturi — Analyst
Saket Kapoor — Analyst
Tia Shah — Analyst
Tushar Raghatate — Analyst
Presentation:
Operator
Ladies and gentlemen, welcome to the Maharashtra Seamless Limited Q3 FY25 Earnings Conference Call hosted by PhillipCapital India Pvt Ltd. 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. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touch tone phone. Please note that this conference is being recorded. I would now like to hand the conference over to Mr. Vikash Singh from PhillipCapital Private Limited. Thank you. And over to you sir.
Vikash Singh — Moderator
Good afternoon, everyone. Welcome to the Maharashtra Seamless Q3 FY25 result Concall. From the management side, we have with us Mr. Kaushal Bengani, Deputy General Manager, Investor Relations and Finance. Without taking any time, I’ll hand over to Kaushal for his opening remarks.
Kaushal Bengani — Deputy General Manager, Investor Relations & Finance
Good afternoon and thank you for joining our earnings call. During Q3 FY 25 dispatches of seamless pipes improved meaningfully in addition to improvement in product mix. This was in continuation of the Trend Seen in Q2 FY25, and had a direct impact on earnings which revived as was communicated in the previous two earnings calls. Two key points responsible for our performance are the continuation of reversal in Q3 of the impact of inventory markdown taken in Q1 as more orders have been executed and dispatches have improved in Q3. During the earnings call in July 2024, the reversal in margin in next two quarters was communicated with certainty as also was the fact that financial performance during Q1 was an outlier.
Secondly, dispatches of seamless price improved by 16% on a quarter on quarter basis in addition to higher dispatches of value addition orders which improved margin profile. I will briefly summarize key financial indicators on reviewing our Q3 FY25 performance versus Q2 FY25 revenue improved by 2% to INR1410 crores. EBITDA increased by 21% to INR280 crores. However, PAT declined to INR190 crores from INR224 crores and EPS declined to INR14.19 from INR16.73 per share respectively. Despite marked improvement in operational performance, decline in PAT and EPS is solely attributable to lower returns on our Treasury.
The impact appears to be more pronounced in Q3 because of outsized returns in Q2. On comparison of other income in 9 months FY25 with 9 months FY24, we have earned INR157 crores against INR97 crores which is an increase in other income by 60%. Therefore, against an average of INR32 crores per quarter in 9 months FY24, we have earned an average of INR52 crores per quarter in 9 monthsFY25.
Apart from these financial indicators there are five key points which I would like to draw attention to. The first is the credit rating. In December 2024 we have been upgraded by ICVA from AA to AA+. This has been the highest credit rating which the company has received in the last 10 years, and sends a strong message to all stakeholders about our strengths and expertise. The second point is regarding our treasuries which is that INR2,417 crores as on 31st December 2024. It is being judicially managed with engagement and inputs at highest levels. Currently our order book remains in the range of INR1500 to INR2000 crores and is at INR1674 crores as on 20th January 2025.
The fluctuation within the band INR1500 crores to INR2000 crores is primarily on account of timely mismatch rather than anything else. The order book remains good as demand environment is conducive for manufacturing industry and oil and gas sector. There is no slowdown. In line with the commitment made to shareholders three years ago. There are no ICDs to unrelated entities or corporate guarantee outstanding. We have come a long way from the time when this used to be the main cause of concern, and that has now been fully and completely resolved.
Finally, I wish to reiterate that capital goods and infrastructure in general and oil and gas specifically continue to witness strong demand for medium term. This directly impacts the seamless pipes market. Demand for seamless pipes remains buoyant driven by capital expenditure and spending in oil and gas sector. As we are seeing our order book being replenished and maintained at good levels.
I would now request Vikash to kindly open for questions.
Questions and Answers:
Operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and. Two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question is from the line of Dhaval Shah from Girik Capital. Please go ahead.
Dhaval Shah
Yeah, hi. Thank you for the opportunity. My question is regarding the volume guidance for FY — for the current year end ’26, can you please share what is the outlook and what guidance would you like to give on the volume front? On the seamless front, we have dispatched 3,23,000 tons in the nine months ending December ’24 the guidance that we can give right now is we will reach close to-4 lakh30,000 to-4 lakh35,000 tonnes for the entire year for the seamless segment.
Operator
The current participant has disconnected. Maybe continue with the next participant?
Kaushal Bengani
Yes, please.
Operator
The next question is from the line of Subham Kadhi from 3A Financial Services. Please go-ahead.
Shubham Kadhi
Good afternoon, sir. Am I audible? So I had a question regarding the impairment of investments in the subsidiaries. So it was to the extent of INR800 crores. So right now, our capital employed in the rig business is around INR650 crores. So do we plan to distribute the proceeds of sale to shareholders or what?
Kaushal Bengani
This is an old point. You can refer to our earlier earnings calls for further clarity. We’ve spoken about this at length, but it’s not relevant right now.
Shubham Kadhi
Okay and any revenue guidance that you can get for FY ’20 FY ’26?
Kaushal Bengani
In FY ’26, we are expecting the finishing line facility that we are installing at Telangana to be commissioned. Once that happensthen we can see growth in revenue, but that is only after December 2025.
Shubham Kadhi
Is it possible to quantify any number right now?
Kaushal Bengani
Our tonnage and revenue in current financial year and as-is disclosed can be used as benchmark for what we can do in the next financial year.
Shubham Kadhi
Okay, sir. Thank you very much.
Operator
Thank you very much. Next question is from the line of Dhaval Shah from Capital. Please go-ahead.
Dhaval Shah
Yeah, hi, am I audible? My line was disconnected. Hello?
Kaushal Bengani
Yes, we can hear you.
Dhaval Shah
Thanks. Yeah. So what is the — you were mentioning about the guidance for the ERW for the current year. So in ERW, we have done around 64,000 tonnes.
Kaushal Bengani
For seamless, I said 4,30,000 to tonnes. This is the conservative guidance we want to give for the year. For ERW, I think we’ll end-up close to 90,000 tonnes.
Dhaval Shah
90,000. Okay. And how does the ramp-up happen once the 1 lakh ton factory facility starts in December ’25?
Kaushal Bengani
Ramp-up will start from January ’26 because once it is commissioned in December ’25, then we will immediately be able to utilize the inactive production capacity that we have right now.
Dhaval Shah
Yes. So as to the utilization of — out of 1 lakh ton, so in ’26 if the orders are at hand, how much can we utilize out of one addition one?
Kaushal Bengani
I think reasonably speaking since it will be immediately after commissioning, you can model 15,000 tonnes for the quarter of December or sorry of March ’26.
Dhaval Shah
Okay, March ’26, understood. 15,000 for the 1/4. Okay. And for the — yeah, Q4 ’26, yes. And out of — for the entire year, how — so can the ramp-up happen for the complete — so how would the ramp-up be like then 50,000, 60,000?
Kaushal Bengani
Yeah. I’ve already told you 15,000..
Dhaval Shah
Yeah, so that should be the run-rate you are saying for the first year of operation.
Kaushal Bengani
As of now, yes, but we update you closer to December ’25.
Dhaval Shah
Okay. And the margins will be better in the new facility.
Kaushal Bengani
If production will increase, then generally operational margin will improve, but then it is also a function of what the raw-material prices and what the sales realization are. So if everything remains constant and only production increases, then margin improve.
Dhaval Shah
Interesting. And last question, now we have been hearing about this US being want to improve — increase the production. So what would be the — either the driver — the indicators and the parameters we should be seeing out, you know where the actual activity happens and we get — we start getting orders.
Kaushal Bengani
If there is more drilling activity in US and Canada then it will benefit all oil and gas sector players. The indicator that you can track because apart from that indicator, I don’t think there is another definitive indicator available. There is a website called AOGR.com, American Oil and gas reporter. On that website, you are able to track weekly rig counts. That is a good indicator to assess what is happening on the drilling front in the oil and gas sector.
Dhaval Shah
Got it. Got it. Interesting. Thank you. Yeah. And just one more on this treasury front, so INR2,400 crore was as of January. And now so are we shifting money from equity to debt funds? Have we done anything of that sort given the sharp correction what we have seen in the markets?
Kaushal Bengani
We have a strategy in-place and we are working according to that strategy, which we don’t want to disclose in public.
Dhaval Shah
Understood. Understood.
Kaushal Bengani
But please keep in mind that whilst the strategy is not being disclosed, the intent is very clear that we want to make money for shareholders and for the company. And there is a team in-place which is looking for this. It’s a dedicated team. And as I said earlier, during the opening statement, instead of INR52 crores per quarter, which was the performance in the comparable period of last financial year. We have done INR52 per quarter, 52 crore rupees per quarter.
Dhaval Shah
Yes. So yes, I just wanted to understand what is the sharp? Yeah. So that INR90 crore has come to INR1 crores. So what is the sharp swing in this other
Kaushal Bengani
No, but in INR32 crores have also gone up to INR52 crores. So if you add-up the other income in FY ’24, nine months FY ’24, then you will get a figure of INR97 crores for nine months, which is INR32 crores per quarter. And if you add-up the other income for nine months in FY ’25, then you will get INR157 crores, which is INR2 crore rupees per quarter. Therefore, instead of doing a quarter-on-quarter comparison, I think if you do a longer period comparison, you will come to the realization that we have done better than what we have done last year-on this front. It is only that in 1/4, we’ve done exceptionally well and in the next quarter, we have not done well. Hence the comparison is not appropriate because it’s a sharp dip.
Dhaval Shah
So this INR90 crore would mean your incremental increase in your NAV investments NAV, is it that INR90 crore, it means that — so how do you arrive at the INR90 crore and it is INR1.86 crore?
Kaushal Bengani
The fair valuation of the investments which have been undertake.
Dhaval Shah
Okay. So your — your investment fair valuation compared to the September quarter, December quarter, there is an increase of INR1.86 crore is what it means.
Kaushal Bengani
Yes.
Dhaval Shah
Understood. Understood. Okay, okay. Yeah. Fine. Thank you.
Operator
Thank you very much. The next question is from the line of Umer from Paul Capital. Please go-ahead.
Mohammed Farooq Umar
Hello. Thank you for the opportunity and congratulations for the good set of numbers. So with the India’s seamless pipe demand currently at 900,000 tonnes annually and the Maharashtra Seamless holding over 50% market-share. Where do we see the annual demand growing over the next three years and at what CAGR? Additionally, we believe the government has implemented its sufficient mechanism to protect domestic seamless pipe manufacturers from anti-dumping practices by Chinese players, especially in the light of US imposing tariffs on Chinese products.
Kaushal Bengani
On the market size of 900,000 tons per annum, we expect the market to grow by 4% to 4% I think or per year and if that is the average rate of growth, because what happens is during periods of good orders, a lot of capacity comes into place because orders are received and then generally there is a dip because it’s a cyclical industry. So year-on-year, the market doesn’t definitely go — definitely grow, but an average rate of growth would be around 4% for the industry. This has been driven by the improvement of capital expenditure in the oil and gas sector and we expect this rate of growth to be sustainable. We are also activating the production capacity, which is inactive right now. This is this assessment and one of our peers has also announced expansion in their capacity.
On the issue of domestic industry being protected from Chinese dumping, the level of protection that should be there is currently not in-place and we are petitioning the government to assist in protecting domestic industry from restrictive trade practices which are being engaged in. That has also had a negative impact on margins, whilst INR20,000 rupees per ton would appear to be good margins, but that’s not the full potential of the industry. Once suitable measures are in-place, then we can expect to see even higher margins, but that will only happen once these measures are in-place.
Mohammed Farooq Umar
Okay. So second question is, with the cash is of approximately INR2,400 crores and only INR800 crores elected for capex, what are the plans for the remaining INR1,600 crores? Specifically, are there any consideration to reward the shareholders through initiatives such as share buyback or higher dividends. Additionally, despite the company’s strong profitability and cash generation, the stock continues to trade relatively at a low PE. Steps are being considered to address this valuation gap and enhance the shareholder value.
Kaushal Bengani
On the point of utilization of the treasury, the first response would be dividend. We have quadrupled the amount of dividend that we paid-in FY ’22 to FY ’24. In that three-year period, we have quadrupled the amount of dividend that we’ve paid. Secondly, we’ve announced a capital expenditure plan of INR852 crores which we have commenced. And thirdly, the plant in machinery that we are using, we want to ensure that in future, if we have to buy new plant in machinery or if we find an inorganic opportunity, then we have sufficient cash to address this requirement. That is why we are conserving cash.
Regarding the fluctuations in the equity market, I think we’ve done a lot in the past 2.5 years to enhance shareholder value. In September quarter of 2021, we were at INR2,000 crores market cap. Currently, we are at 8,000 crores market cap and our market cap had gone up to INR14,700 crores approximately. We are working with an intention of enhancing value for all stakeholders and we have done good things within the company so that is achieved. We continue to walk that journey.
Mohammed Farooq Umar
Thank you. Thank you, sir. Thank you very much and all the best.
Operator
Thank you very much. Next question is from the line of Rishi Solanki from Green Cove Securities. Please go-ahead.
Rishi Solanki
Hello, am I audible? My question would be, can we see the premium threat segment product becoming a part of our manufacturing capability in the next three months as we had anticipated, as you had said in the previous con-call. And where are we in the agreement with? And my second question would be, solar, what about the solar plant approval in Telangana? Do we see or where are we with the negotiations with the government? Because it’s been almost a year since you had those discussions with the government of Telangana.
Kaushal Bengani
On the premium connection, we are not in discussions with. We are in discussions with another foreign players. Those discussions are continuing. I cannot talk about it much, but we are in constant touch with them and we expect to conclude shortly. Regarding the solar power plant we have written to the government, we followed up. Unfortunately, we have not received approval. None of the industry players in have received approval.
Rishi Solanki
Okay.
Kaushal Bengani
We continue to follow.
Rishi Solanki
Have any plans of setting up a solar plant, if not in Telangana than some other state?
Kaushal Bengani
As of now, we’ve only announced Telangana. We can look at more solar plants in Maharashtra for captive consumption, but it is dependent on a couple of factors which we are working on. Should clarity be received, then we will let you know if a — an assessment of that project is required.
Rishi Solanki
Okay. Thank you for your time.
Operator
Next question is from the line of Gargi from Value Investment. Please go-ahead.
Unidentified Participant
Hi, sir, thank you. Sir, my question was that out-of-the 9 lakh tons of change demand, currently how much is being imported in India?
Kaushal Bengani
Anywhere between 10% to 20% is being imported into India. It depends on as the figure varies throughout the year.
Unidentified Participant
In the previous calls, there were some indication regarding the BIS implementation, etc. So is there any respite from this situation or do you expect the same coming going-forward?
Kaushal Bengani
Could you repeat your question, please? I couldn’t hear you properly.
Unidentified Participant
Sir, in the previous call, there were some indications regarding BIS implementation or on the pipes for the — for the pipes that are being imported. So is there any respite from this situation or any indication that the dumping from Chinese players is expected to reduce in the near-future?
Kaushal Bengani
We have not given any indication on the BIS front. On we are trying to address the issue of Chinese dumping that efforts continue.
Unidentified Participant
Okay, sir. So how much is exports in the order book? And is there a delta between domestic and exports margin in seamless pipes?
Kaushal Bengani
As of now, exports is less than 10% of total order book. And there is definitely a delta because if there is no delta on the exports front, then what risk we are carrying is the risk of anti-dumping duty being upon us by the domestic manufacturers of the country in which we are exporting because then they would petition their government that they are selling our products at lower margins in the export market.
Unidentified Participant
And sir, this 10% if we compare to historically two years back, what was this number two years back?
Kaushal Bengani
Two years back-in March 2023 30% of total dispatches were towards exports. But the fall in exports did not impact our profitability because domestic orders were very good. Domestic demand was very good.
Unidentified Participant
In this quarter we have seen an improvement in the order book in ERW. So what is leading to this?
Kaushal Bengani
Oil and gas expenditure?
Unidentified Participant
Okay, previously it had reduced because of lower dispatches by CGD segment
Kaushal Bengani
In which quarter?
Unidentified Participant
So last quarter itself, if you compare the order book in the ERW, current quarter versus last quarter, there is a significant increase.
Kaushal Bengani
The fluctuation is on account of lumpiness in order inflow. So if suddenly we get an order of INR40 crores in one-week. And prior to that receipt, if you report the order book, then if the order book appears to be lower than it actually is. So the impact of lumpiness in order inflow remains.
Unidentified Participant
Sir, last question is that is there a lot of oil discovery work being done by private players in the eastern coast of India? Is this a correct understanding? And if it is done by the private players, then do we have approvals from those players in order to get orders from.
Kaushal Bengani
Definitely from PSUs there are activities taking place on the Eastern coast and we expect good demand going-forward.
Unidentified Participant
Okay, sir. Thank you.
Operator
Thank you very much. The next question is from the line of Vikas Kasturi from Focus Capital. Please go-ahead.
Vikas Kasturi
Good evening, sir. And sir, thank you so much. The presentation is fantastic. And in terms of disclosure and updates that you put into that. So I had two questions, sir. And pardon me, if I’m asking — if I’m repeating a question which has already been asked. So the first one is, sir, when you have back-to-back arrangements with both your suppliers and customers, why is there so much of a swing in the EBITDA per ton? And my second question would be that in terms of the capex projects that you have outlined, in the previous calls, you had mentioned that we want to do the finishing line first. So my question is like why are the other projects waiting for the finishing line? These are my two questions.
Kaushal Bengani
Thank you for your kind words. Firstly. On the point regarding the fluctuation in EBITDA per ton, there was an amalgamation of two or three factors in the first-quarter of FY ’25, which led to a significant pressure in EBITDA per ton in the first-quarter. In the earnings call for the first-quarter, I had spelled out that the EBITDA per ton has been disproportionately been impacted because of the two or three factors, which you can read about in the transcript of that earnings call. Yes, those factors are mostly temporary and will reverse in the second and 3rd-quarter. That is exactly what has happened. However optically it appears that EBITDA per ton has moved from 9,000 rupees per ton to 20,000 rupees per ton which is a huge fluctuation but if you consider a blended EBITDA per ton for the nine-month period, then the figure is closer to INR16,500 crores. And at the start of the year, I had given a guidance of INR15,000 per ton for FY ’25. So I think that should throw some light on why the sharp movement in EBITDA per ton has taken place in this financial year. But overall on a Nine-Month basis or in other years on a six-month basis, you will see that EBITDA per ton is generally at the level where we expect it to stay. So orders are being received every day, orders are being dispatched every day. EBITDA per ton also vary — also varies quarter-on-quarter depending on the product mix that is being manufactured and dispatched. However, our profitability per order always remains at what we envisage it to be before taking that order, and that is our strength.
The second point you raised was regarding capital expenditure. The other aspects of capital expenditure will start shortly. However, for the moment, we have only started upon the finishing line at Telengana because similar teams are involved in these types of capital expenditure projects and that team is currently involved with the Telengana unit. Once that Telengana finishing line is activated very soon after that we will start on the cold drawn pipes facility, which we have mentioned in the earnings presentation.
Vikas Kasturi
Thank you, sir. If I may just ask one more question, sir, it’s on the — on the rig so I think by the time we speak the next time, I think there it would be sometime in May or June and that rig would I believe our contract would be over the 3-year contract for the rig and the return on capital as far as that investment has gone, the rig is — I don’t think it is subpar as compared to the overall company average. So any indications on what you plan to do with the rig, sir? And yeah, that is my question, sir.
Kaushal Bengani
We don’t know when the rig will be dehyred. It will either be in May or it will be post-monsoon. Once we have clarity on that, then we’ll be able to tell you specifically what we’ll do because there is one more Board meeting prior to the earliest date of the hire, which is in May. The answer which you are looking for, I can probably best give you in May.
Vikas Kasturi
Okay. All right, sir. And sir, in terms of the corporate governance, you’ve done a fantastic job in terms of all the activities that you’ve done over the last two, three years in terms of reducing intercorporate deposits and in general, sir, even the promoter increasing stake and so on. Sir, except for this rig part where you have given it to another group company, which has then given it to another, I think Oil India or ONGC, I forget which one. So it just optically, it just doesn’t look in-line with all your activities that you’ve done, sir. So if you could just correct that part of it, it would look fantastic, sir. That is just my humble $0.2 to you
Kaushal Bengani
Thank you. You are right and I personally agree with you. But once suitable decisions and Board approvals are received, we will make communication on this.
Vikas Kasturi
All right, sir. Thank you. Thank you for thank you for your elaborate answers. Thank you.
Operator
Thank you very much. Ladies and gentlemen, we will now take our last question from the line of Saket Kapoor from Kapoor Co. Please go-ahead
Saket Kapoor
Yeah, Namaskar, and thank you for the opportunity. I hope I’m audible. Hello.
Kaushal Bengani
Yes, yes, you’re audible.
Saket Kapoor
This is Namaskar sir. Sir, firstly, just to conclude with what you said to the large participant in terms of the future of the rig business from MSL. You — in principally, we have already articulated to the fact that we will be staying to our core business. So whatever will be the next course of action, that would be in aligned to what we have communicated earlier. So that understanding is correct. The Board will meet and all other stuff is definitely a time apart. But in-principle, we have been communicated that since it is not the line-of-business for us, we will stay on coats with our core business in pipes. So that understanding is correct, sir.
Kaushal Bengani
That is — that is correct, but I can only confirm once Board approvals are received. But you are right, that has been communicated earlier. It is still the position which I hold right now. But 100% confirmation can only be communicated once Board approvals are received.
Saket Kapoor
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Kaushal Bengani
[Foreign Speech]
Saket Kapoor
[Foreign Speech]
Kaushal Bengani
[Foreign Speech] but it is something which we are focusing on with a dedicated team.
Saket Kapoor
Right. And last bookkeeping question, [Foreign Speech]
Kaushal Bengani
[Foreign Speech]
Saket Kapoor
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Kaushal Bengani
[Foreign Speech] [Foreign Speech]
Saket Kapoor
Lastly, sir, [Foreign Speech]
Kaushal Bengani
[Foreign Speech]
Saket Kapoor
[Foreign Speech] [Foreign Speech]
Operator
Thank you very much. The next question is from the line of Tia Shah from Nayan Emwala Securities. Please go-ahead.
Tia Shah
Firstly, congratulations for the good set of numbers. Am I audible? Yes. So my question is on the capacity utilization only. Like after the expansion of the Telangana plant, are we expecting the seamless capacity utilization to maintain at the — above 85% levels as well?
Kaushal Bengani
Yes, whatever will happen in the Telangana facility will be common because it is the same furnace which will be manufacturing — sorry, which will be used for the production line. Currently, we are only running one-shift, then we’ll start two shifts.
Tia Shah
So capacity utilization might go above 90% as well.
Kaushal Bengani
It cannot be measured right now. It will stay at the average level that it has maintained for the past three years.
Tia Shah
And in ERW segment, we have seen the capacity utilizations to drastically fall to 32% levels. What are we expecting for the upcoming quarters?
Kaushal Bengani
Capacity utilization is not a simple calculation of numerator divided by denominator into 100 in the pipe segment. The reason why it is not so is because of the nuance of product mix. In a production period, if you have manufacturing of large-diameter pipes versus another production period where you have manufacturing of small diameter pipes, the tonnages that you end-up with is materially different, in the case of large-diameter pipes you will end-up with higher tonnage in the case of low diameter pipes you will end-up with lower tonnage, and capacities are measured in tonnage. Therefore, despite operating your production facility for 24 hours a day, only on account of the different types of products which are being manufactured, you will end-up with different tonnages which are produced. Hence when capacity utilization is being considered, then it is better to look at it from a medium-term perspective rather than a quarter-on-quarter perspective. It will also be better if companies are able to give capacities in meters of pipes which are manufactured because then the impact of the size of pipes is not relevant but that is not the standard that is commonly practiced and we continue with tonnages.
Tia Shah
Okay, got it, sir. Thank you.
Operator
Thank you very much. The next question is from the line of Tushar Raghatate from KamayaKya Wealth Management. Please go-ahead.
Tushar Raghatate
Yeah, good afternoon sir. Thank you for the opportunity. Sir, just wanted to know like recently Tama said about the increased focus on the oil. So considering the world scenario of jackup, Rick, how do you see the upcoming demand going-forward? That was my first question, sir.
Kaushal Bengani
There is no problem in-demand. Our order book is good. We are getting good orders and we are dispatching appropriately. I reiterate that there is no slowdown of any kind. Results of one of our competitors have also been announced in the previous week and even they have shown no signs of slowdown. There is no slowdown in the seamless pipe segment as and when oil and gas expenditure increases, drilling activities increase, there will be higher demand for seamless pipe. And we are well-positioned to capitalize on this development.
Tushar Raghatate
Got it, sir. Sir, in your rig business, any plan to sell that business or we are going-forward with that business, Rick?
Kaushal Bengani
We will let you know in the month of May, when suitable board approvals are received.
Tushar Raghatate
Fair enough, so that was helpful. Thank you.
Operator
Thank you very much. Ladies and gentlemen, that was the last question for today’s call. I now hand the conference over to Vikash Singh for closing comments.
Kaushal Bengani
I think may be Vikash got disconnected. I’ll just submit my closing comments. Thank you, shareholders for participating in the earnings call. We remain committed to improving shareholder value and maintaining our market leadership position. Temporary fluctuations will not have any impact on the long-term prospects of the company. We are in a good demand cycle. Oil and gas expenditure is good and we are well-positioned to capitalize on it. Thank you for your support and I look-forward to interacting with you in future. Thank you.
Operator
On behalf of Maharashtra Seamless Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.