Mishra Dhatu Nigam Ltd (MIDHANI) Q3 FY23 Earnings Concall Transcript

Mishra Dhatu Nigam Ltd (NSE:MIDHANI) Q3 FY23 Earnings Concall dated Feb. 08, 2023.

Corporate Participants:

Amit Dixit — Investor Relations

Sanjay Kumar Jha — Managing Director

Gowri Sankara Rao Naramsetti — Director Finance

T. Muthukumar — Director Production & Marketing

Analysts:

Unidentified Participant — — Analyst

Abdul Karim — HDFC Securities — Analyst

Rohit Ohri — Progressive Shares — Analyst

Mohit Mishra — ICICI Securities — Analyst

Presentation:

Operator

Ladies and gentlemen, good day and welcome to Midhani Limited’s Q3 FY20 Earnings Conference Call, hosted by ICICI Securities. 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. Amit Dixit from ICICI Securities. Thank you and over to you sir.

Amit Dixit — Investor Relations

Thanks Rachel[phonetic]. Good afternoon everyone and thanks for joining the call today. At the outset, I would like to thank the management for giving us an opportunity to host this call. From the management we have Dr. Sanjay Kumar Jha the MD; Mr. N. Gowri Sankara Rao, Director Finance; and Mr. T. Muthukumar, Director P&M. Without much ado, I would invite Dr. Jha for opening remarks, post which we will open the floor for an interactive Q&A session. Over to you sir.

Sanjay Kumar Jha — Managing Director

First of all, I welcome all the investors and their stakeholders and all my colleagues who are joining for this important deliberation. If we are talking about this quarter we have done reasonably well in the sense that there is an increase in EBITDA in the third-quarter from the last year of third-quarter of around 10%. Also, even though there is some slight reduction in the revenue by — instead of earlier the turnover of INR234 crores against that we have had INR231 crores in this quarter. However, the EBITDA has increased by 10%, but there is almost slight decrease because of the different additional cost.

The financial costs have gone up certain other areas and we also have the depreciation also on the higher side because of commissioning of every important equipment which already we have communicated to you and I would like to share that the facility, which we were working[phonetic] since so many years got commisioned in this year and the honorable President of India inaugurated that facility in the month of December. So then this equipment has started operating now and we have achieved many milestone in that in terms of establishing the technology, in terms of establishing the products, but the volume of production has to pick up now. And we are getting the indications are good. So we will be seeing that. It will also add-in our earnings as we progress in the coming months and also the next financial year.

The VoP also has gone up from the last quarter to this quarter, but however if you compare from the previous year there is some decrease and this we have tried to see that how we can clear our focus was mainly on the side of clearing the inventory, so we have seen that what maximize will maximize the sales and that has been our target. In addition to that, this year — this quarter, we also made a number of new developments in the area of the different products, and that has I think one of the important landmark that your company has also started making the seamless tubes by hot extrusion, which we have established, and we have dispatched in this quarter.

Also we made some of the super nickel, that is Nickel based alloy products which we have made through newly commissioned Wide Plate mill and many other product developments have taken place during this period. In this also I like to mention that Rohtak facility, the armour with a symbolic small set of the business started giving the contributor in our quarter three production, it is going well, as far as production is concerned. So and we have today the order book position, we have maintained at the similar level, which we had in the month of March. So order booking also is I will not say very good, but it is also picking-up and we are able to [technical issue].

And on the new facilities we are expecting that more and more orders will be coming. So this is what I would like to submit here and more than my speaking about the performance I would like to know from the investors that what is your concern, what are the questions regarding the performance of the Company.

Questions and Answers:

Operator

Thank you very much. Ladies and gentlemen we will now begin the question-and-answer session. [Operator Instructions] Our first question is from the line of Amit Dixit from ICICI Securities. Please go-ahead.

Amit Dixit — Investor Relations

Yeah, thanks a lot sir. Thanks for giving the opportunity. By the time question queue assembles, let me just ask a couple of questions of mine. The first one is related to the space budget. As we saw that there has been a meaningful cut in the space budget this time around. So how and since Midhani have got a significant streak[phonetic] in this space sector as well. So how do we understand this in terms of our future ordering for the Company particularly in the space sector?

Sanjay Kumar Jha — Managing Director

Yeah, in fact, if you might have seen the space budget is only for the R&D. What is best to the policy is that they are diverting now the Space business towards the private sector. So I feel that as for the investment in this space is concerned, it cannot be benchmarked with the government allocation, allocating the funds. So you will find that, as you might have seen that recently the L&T and HIL[phonetic] consortium, they have won — I mean taken that one order for making the five PSLV. So this is the one example that how their space is moving towards the privatization. In fact for SSLV also, you will find that many private payers will be coming in this. So the space now has entered in the new domain. So that’s why you might have seen reduction in the money, but as far as the R&D work is there we are very much I mean interested and we are very much excited that some of the new projects also it is coming up in this[Phonetic].

So those things also will flow into our kitty. But then and more than many other players are also coming in the manufacturing of the materials in the country, it is not that [indecipherable] will have the monopoly and exclusive right on that, but as on today on the many materials except Midhani no other players are there in the country, but it is going to have another player also but business is also — volume also is going to pick-up in the coming years.

Amit Dixit — Investor Relations

Okay, the second question I have is essentially on the raw-material side. Last time you indicated that the prices of the raw materials for products have not come off unlike the prices of raw-material for traditional [indecipherable] they can understand what is the scenario now, have we seen some erosion in prices or have they picked up again from this quarter?

Sanjay Kumar Jha — Managing Director

If prices of raw-material I think it has established — stabilized not very — but it has there is some isolation[phonetic] in price. But today, not only the price is the criteria, in fact getting the raw-material on time and getting the shipments and all is a big challenge. And that also on the very-high end materials, definitely there is a scarcity and there is a problem in getting the materials in the future also and this is going to continue for some more time. I don’t know for how long, but it is you’re going to have impact on any manufacturing industry, depending on the import of the raw material. So not only in the Midhani and since our requirements are very exclusive in nature, so it will be definitely — there’ll be effect on the raw-material supply as well as in the price also. Okay, great, thank you sir. Thank you so much and all the best.

Operator

Thank you. Our next question is from the line of [indecipherable]. Please go-ahead.

Unidentified Participant — — Analyst

Good evening, sir. I have two questions, first is regarding the scrap and the rejected material that we have, it’s not put into this quarter. But in the last four years, that number has kept on rising and as I see it’s about 22% to 27% of your total inventory and about 16% to 17% of your total capital employed. Now, from what I understand it’s part of business, but at the same time that much part of our capital employed is not earning anything meaningful for us. So I’d like to just understand how you want to try and what are your thoughts on tackling this one aspect of our business and can we re-use this in any form or shape into some other products? So that was the first question.

Sanjay Kumar Jha — Managing Director

Yeah, in fact, you told rightly that scrap — valuation of the scrap is going up. One part is that, since the cost of the raw material also has gone up so scrap costs also will go up because valuation depends on that. What is the price of the raw-material, number-one. Number two is the quantity is increasing and you said that consumption part has to be seen. So we have taken a big initiative that how to consume the reverts[phonetic] our recycled raw-material as much as possible in our own system, so that we can also save the consumption of pure raw materials coming from the import[phonetic] source.

So in this direction if you see in this quarter there is a substantial increase in the percentage of scrap used in our operation of alloy making. So it has gone up earlier, something around 40 to 45 to now 60 — around 60. It is increasing now, but at the same time generation is also there and certain scrap so we cannot recycle, we cannot sell also because of the strategic materials. The scrap selling in the market will not be good for the — as a national perspective, because this materials are very, very strategic in nature. So, we have to keep it with us and if possible the customer says that, you can recycle the scrap if they permit, then we can recycle those things.

So slowly now, the customer also, we are taking — we are improving our technology and we are also trying to convince those customer that by recycling also we can get the good quality. So there is a change in that also, and you will find that with this type of initiative I am hopeful that it will come down, but it cannot go to the very low level just in the immediate future, but it will take some time to come to that level.

Unidentified Participant — — Analyst

That’s very helpful sir. Thank you. And if you could just portray some picture on the competitive scenario that is there from the market, especially the domestic Indian players. Are you seeing any rising competition there or we continue to dominate the market as of now?

Sanjay Kumar Jha — Managing Director

No, the competition is very much in the market. There’s no doubt. Many players have come in the area of special steel, nickel-based alloys. Of course, titanium is still we are — we are the only player in the titanium. But in nickel-based alloys, they are coming forward, but I’m also saying that volume also is increasing, requirement also is increasing and not only in the Indian market. This export potential also is there. So this opportunity is also there. But then you see the competition, so it is like a situation where we have to improve our efficiency and we have to see that we can meet the — cut-down the cost of production so that it will be more competitive in the market. Many — I will tell you the many orders we have Midhani is now taking on the competitive bidding. We are not taking like on a nomination basis. So we know that where we are today in terms of the price, in terms of our efficiency and I am sure that in the coming days and future we will improve further, so that we can be leading player, not only in terms of our technology and quality also in the price also. This is what we have. Our plan is there and we are working towards that.

Unidentified Participant — — Analyst

Thank you. Thank you so much sir, I’ll come back in the queue.

Operator

Thank you very much. [Operator Instructions] The next question is from the line of Abdul from HDFC Securities, please go-ahead. Abdul, your line has been unmuted, please go-ahead.

Abdul Karim — HDFC Securities — Analyst

Yes, thanks for taking my question. What kind of opportunity Midhani can target over the next two years. This is my first question. And what are the key development, we’ve only had in last quarter.

Sanjay Kumar Jha — Managing Director

Yeah. I think this is a very important question you have asked. Both questions are very important. Next two years, our target is we have to enter in the new segment of the products and the new segments, already we have initiated the actions, and that’s what — that is — that is answering your second question regarding the developments. So recently in the last quarter if you see, we have made Nickel based alloy [indecipherable] we have made from our new Wide Plate Mill. It is totally — entirely imported in the country. So that is one product we have. I am very hopeful that we’ll be able to do in the good part. In addition to that the similar product we have the cold-rolled sheets also. And in the area of seamless sides and tube making, when we have installed the new facilities commission that also I am seeing that opportunity is there for us in the new segment.

In addition to that, whatever we have installed the new vacuum Induction melting of [indecipherable] capacity is going to enhance our production capability for Nickel based alloys and that facility also is so well equipment is there that we can recycle the scrap, it can melt the 100% scrap in that, so we’ll get the cost advantage also because of that. So this is one area. Also we have in fact the certification we have achieved from — for making the place for oxygen plant for a very reputed company that is — this the [multiple speaker]. So this we have made for making the oxygen plant making facility. In the country for making the three meter width [indecipherable] plates, nobody is — no facility is existing and India what we have assessed the market is there for almost around INR2000 crores. So if we are able to pick-up part of that also in the coming years it will be a good value propositions for us.

So what I — nutshell I can say that for our Wide Plate Mill, we have the technological advancement what our people have done, there is lot of potential. Also, we have produced the Armor steel. Armor steel like it is being imported in the country today for many different applications. So we have one advantage that we can make a very low thickness also armor plates in our facility and we can meet the requirements of armor steel consumption in the country, it is coming in the big way. And armour also their vehicle armor also facilities their, many of the large indigenization program in the country. You must have heard about that India is trying to do that. How to indigenize the alloys used in some of our very important fleets of aircraft applied by the OEMs, either from the Russian origin or from the other Western origin.

So there is — and also the many alloys we have developed and I am hopeful that, that business is already coming up. It will be growing in the future. I cannot tell you the value for that, but it is going to be if those things are into the — coming in the form of the business. There will be a big opportunity for us. [indecipherable] but we are also now installing our 10 times VAR. Not we are going to commission. Titanium capability also we will be enhancing, almost it is going to more than two times, whatever we are manufacturing today. So like that many more things are there. We will be getting that information as and when we start within the product release.

Abdul Karim — HDFC Securities — Analyst

And see what kind of exports are we looking for next two to three years?

Sanjay Kumar Jha — Managing Director

Yeah, the export mainly if we see last couple of years our main idea is that how can we make Midhani as a brand in the international market. So you know that initial the brand making requires lot of credibility or quality should be good, your price should be very competitive, delivery also should be on-time. So there are many factors. So we have worked hard and our team is still working and those things are getting established, so I am hopeful that there the target which we have decided to reach around INR250 crores in another two years. I think it is not impossible to achieve that.

Abdul Karim — HDFC Securities — Analyst

Okay, thank you so much.

Operator

Thank you very much. [Operator Instructions] Our next question is from the line of Anik Mitra from [indecipherable] Research. Please go-ahead.

Unidentified Participant — — Analyst

Thank you for taking my question. Am I audible, sir?

Sanjay Kumar Jha — Managing Director

Yeah, yeah, audible.

Unidentified Participant — — Analyst

Sir, your order book position look a bit stagnant for some time. So sir, can you throw some light like what is the contribution of various segment in the order book, what is the execution timing of those orders and what is your take going ahead? This is my first question.

Sanjay Kumar Jha — Managing Director

Yeah, order book whatever we have started in the first March to today, it is almost at the similar level. So it is like that, whatever we have produced, that much only order we have booked, but there are some indications, where we are waiting for certain orders to come. So it is going to flow slowly, but as I have told that we are now not only — this is coming from that sector. In fact, many of the things we are depending on that, how quickly you can execute one order so that second will come. So many orders are like that today and there as you said that time required for conversion given is very less, especially in the area of export. So, with the additions of new facilities now we are hopeful that those things also, we’re going to address. So that will see the good inflow of the orders because without orders, how you can claim that I will be improving my business.

So there are some potentials there, which I cannot tell you at this moment, but many things we are working and we are trying to interact with that customer. And as and when we get this type of opportunity to interact we will inform, but things are there and different directions are there. We will see that this going to be [technical issue]. And today, we have visibility of another INR600 crores of order. Visibility is there, but it will be coming at the different level of time.

Unidentified Participant — — Analyst

Okay sir. Sir my next question is regarding the import of certain material like are you facing any trouble due to Russia and Ukraine world [indecipherable]

Sanjay Kumar Jha — Managing Director

Yes, Russian, Ukraine conflict has put lot of pressure on the supply of raw-material for all countries, so that for India also, but we are a factor for mainly one and two raw materials because of that, so that we are trying to resolve it, but it has really affected some of our areas like titanium is one sponge which is coming from the outside[phonetic], so, that got affected because of this conflict. Those countries are having one of the biggest products and capacity and raw-material also and resources also. It has really affected that our production on the Titanium front, but we are trying to address those issues with proper agreement or proper procurement system. But yes, there is — some effect is there on that because of this.

Unidentified Participant — — Analyst

Okay. Sure sir, I’ll come back in the queue. Thank you.

Operator

Thank you very much. [Operator Instructions] We have a question from the line of Rohit Ohri from Progressive Shares. Please go-ahead.

Rohit Ohri — Progressive Shares — Analyst

Hi, sir, few questions. The first one is related to these strategic and technical tie-ups that we have. And in terms of the MOU with Boeing India we were supposed to supply some raw materials for aerospace and some more tie-ups which was there with Lockheed Martin. If you can take us through the developments in that and if at all there are some orders that are flowing from gas[Phonetic].

Sanjay Kumar Jha — Managing Director

From Boeing, whatever, Boeing is directly, they are not buying the raw-material. Boeing philosophy is that whomsoever is working with them or supplying certain components, certain things they’re all connected within their supply-chain so they buy the material, but the Boeing will certify the companies from where they should buy. So, we have entered in that first phase where the Boeing has assessed our capability and they have also told all their MSME and industrial partner that you can buy raw-material for Midhani, now they are — we are there looking for that when they need the material. Then they will come to us for getting their raw-material for their purchases. So in that connection, we have moved forward and we are hopeful that some of the people who have interacted with us recently, they can come forward and take the material from us and supply the material for the Boeing supply-chain system.

Rohit Ohri — Progressive Shares — Analyst

Okay and for Lockheed Martin if any developments over there.

Sanjay Kumar Jha — Managing Director

Lockheed and the Martin is also on the similar lines, they are also not buying directly, but their — their our main idea with Lockheed Martin was to have some of the investment type of proposal, strategic type of alliance. So, which at this juncture, they have shown that they are not in position to invest in different areas, technological area where we wanted to work with them, but we are in touch with them regularly. But let’s see when we can convert something into the business. But today we are only in the area [technical issue] we have no indications of any orders or any raw-material buying from us.

Rohit Ohri — Progressive Shares — Analyst

Okay, so last-time when we spoke.

Sanjay Kumar Jha — Managing Director

We have some indications from Rolls Royce. We have something from also from Pratt & Whitney. So these are some of the discussions are going on. Orders also expected, may not be in the large-volume, but with a small beginning, small orders we are going to start.

Rohit Ohri — Progressive Shares — Analyst

So last-time when we spoke about JV with NALCO and we were speaking of appointing some consultants and there were some requirements that time which was quote. So any plans happened over there or by when do you think that things will fall in-line for the JV?

Sanjay Kumar Jha — Managing Director

Yeah, since that project, which we have planned initially to make 60,000 tons of flat products and investment also was quite big, so we wanted to reassess again that whether the market potential is there for setting up the facility. So we went for exercise by appointing a reputed consultant who have this the capability to work[phonetic]. So they have done a good job and initially they have submitted, if brief report they have submitted and based on that report we have allotted some more studies. So they are still conducting the studies by interacting with various stakeholder, customers, and producing agency and it will be after that the entire scenario will be reviewed at the highest-level in our ministry and once that is clear, then we can decide what is the direction of our joint-ventures.

Rohit Ohri — Progressive Shares — Analyst

Okay, okay, in terms of the axels and wheels, which is a requirement for the Indian Railways and even if you check with our con-call they also mentioned the same that axel and wheels is something that is the requirement of the government. So is it that Midhani can play a role and we have some orders for axel and wheels for Indian Railways?

Sanjay Kumar Jha — Managing Director

Yeah, we have axel already we have supplied, 500 numbers axels already we have supplied and another 1,000 numbers already we are executing now. And as you said about the concur, concur also we are participating on their — one of the tenders. So on the asset side, we are moving well. Our technology and production facility has been certified and the product also has gone into their system. We’ll, of course, we are not making the wheels. It is not our product in our facility. But axel yes we have entered.

Rohit Ohri — Progressive Shares — Analyst

Sir, approximately what sort of numbers in terms of revenue can this fetch for us in the axel business?

Sanjay Kumar Jha — Managing Director

It depends on the requirement for how much they consume and this venture in fact, we have recently established only and whatever I indicated that [indecipherable] we are working so and another tender which is there for, how much, [multiple speakers] so another some 18,000 numbers are there. These are all numbers are floating. As and when we received the order we will communicate to you. But that area is established manufacturing. We are the only [indecipherable] some resources like our downstream facilities where I can do finishing operations quickly, those things we are ramping-up. It is a good thing.

Rohit Ohri — Progressive Shares — Analyst

Yes, sir definitely. Vande Bharat trains as well as Vande Metro trains, they can be good opportunities if they click well for us. So my next question is, when we say that we are into recycles some of the scrap that we have is the quality of the output, is it good or does it match the requirements of the customer as well. Is there any issue related to the recycling of scrap and using the material again because of course the efficiency reduces, right, the purity of the metal also reduces. So are they okay with these kind of initiatives from our end?

Sanjay Kumar Jha — Managing Director

No, I’ll tell you, we are in the business of high-end applications like Aerospace, missile space where the people are looking for consistency in the product quality. So any deviation in the product process has to be — go for a number of trials and turns. And you know that you cannot risk satellite with just a small cost-saving because of raw-material, you cannot take the risk-on the missile, by saving the small costs on the raw materials and same is the case for aerospace also any aircraft. So people are very careful in deciding the process. So any customer who is coming to us from these sectors they specify that, what will be the content of the raw-material, what will be the quality of raw-material, from that stage they take care. So that is why many times you cannot play with that type of a scrap, which is already with you. So it requires a lot of evaluation, then only we can go. So we are that’s what I said from replying to the earlier our — some of the participants. We are trying to do that and see that those things can be proven, once proven then they will also give the approval to go ahead. Scraps are not bad, we recycle the scrap very carefully, we process it, we certify that, we test the scrap composition, everything is taken care of. We have [indecipherable] then only we process.

Rohit Ohri — Progressive Shares — Analyst

Okay, my last question is related to the breakup of the order book, if you can break it into space, defense, energies and exports?

Sanjay Kumar Jha — Managing Director

[Technical issue] what is that 40% [multiple speakers] In the navy we have — we will give you. No problem. Around 50% is from the space and it will be around 30% to 35% will be the defense, and the balance will be from energy and others. This will be the composition.

Rohit Ohri — Progressive Shares — Analyst

Okay, thanks. Thank you sir. Thank you for the answers.

Operator

Thank you. Our next question is from the line of Mohit from ICICI Securities. Please go-ahead.

Mohit Mishra — ICICI Securities — Analyst

Hi, good evening, sir. Thanks for the opportunity. So I have two-three broad questions, number-one is, what kind of the supply-chain disruption, we talked about earlier, and whether this will have any bearing on our business?

Sanjay Kumar Jha — Managing Director

Yeah, supply-chain disruptions are there because of I’d say Titanium sponge. So it has not affected adversely as yet, but with our lot of persuasion and taking the initiative at the right moment we are able to fill the gap with certain other resources. So now I am hopeful that things will be also addressed and we are getting now the good response from our OEM supplier from the overseas for this material.

Mohit Mishra — ICICI Securities — Analyst

Okay. Sure, sir. And also, sir revenue guidance for quarter-four and next year and also on the EBITDA margin front?

Sanjay Kumar Jha — Managing Director

The figures I am very difficult to predict at this moment, but as and when the results are there it will be communicated to you. But we are trying to do our level best, so that we can improve from the previous year performance.

Mohit Mishra — ICICI Securities — Analyst

So sir whether there will be any completion of EBITDA margin or whether we’ll see any pressure on the EBITDA margin or it will largely be maintained, like we have done in the nine-month.

Sanjay Kumar Jha — Managing Director

Very difficult to predict at this stage, but our target is that to maintain at the same level, but let us see how the things are holding and I’m not seeing any uncertainties, things are well in control, not only for Midhani for the entire country. So if that is that way if you move, it will be in the better situation only.

Mohit Mishra — ICICI Securities — Analyst

Sure sir. Thank you.

Operator

Thank you, Mr. Dikshit, would you like to add a few more questions.

Amit Dixit — Investor Relations

Yeah, so I had a couple of questions actually. The first one is continuing the question of Mohit and previous participant on the order book side. Sir, what kind of order inflow can we expect in next year FY 24, if you can let us know broadly the segment wherein in this order book will come — orders will come for a particular product. So that will help us to crack them also the quantum could it be very helpful.

Sanjay Kumar Jha — Managing Director

[indecipherable] broadly the sector, were already expected in the next year, mainly from the energy. Then also we expect from Defence. We also expect that something will come from the aerospace, so those are the things and then in addition to that, something from railway also will be there. Armor then we also expect that some of the things in the commercial domain also some of the product which we have qualified for three meter width plate for stainless steel. So from that the application is basically in the area of oil and gas. So those things also is expected. So those are the various because now our domain is we are widening our product base. So definitely, I see the customer also is going to be widened because of that, so dependency on the one on two segments is not going to give you a good business in the future. So considering that only whatever steps, your company has taken in the last couple of years. So now, we are confident that we are able to enter into new areas with our unique quality of the product.

Amit Dixit — Investor Relations

Sir is it possible to quantify it in different buckets that you mentioned for instance defence, aerospace, in terms of growth, how much do you expect the order inflow?

Sanjay Kumar Jha — Managing Director

I have not worked out yet sitting here, but we will tell you, because many area where I see some place there may be very large-volume also low also, so we are just hopeful of giving the better one. We will communicate to you as and when we start getting the things unfolding [technical issue].

Amit Dixit — Investor Relations

Okay, sir, in last con-call, you indicated that the revenue from Wide Plate Mill and Armor plant on a steady-state basis could be to [indecipherable] INR500 crores per annum each. So what kind of revenue from these two facilities specifically, we can expect in FY 24.

Sanjay Kumar Jha — Managing Director

Yeah, FY 24 only we expect that something is — so whatever we figure we have told, we are trying to target those but let us see that whether how can this can be realized [phonetic] but potential is there on that sectors. And as our economy also isn’t a good health I am sure that market base also is good. So we’ll be having certain area where we are working still like and getting the supply of input material, because we are not making any input material of large quantity within our premises. So these are the challenges which we are facing that how to get the input material on-time and that also with the proper less cost and so that we can maintain our margin and sell the product. So these are the challenges we’re facing, but we are trying to resolve it.

Amit Dixit — Investor Relations

Sir in the last con-call you also indicated that there is this for vehicle armory out of 100 odd vehicles, 15 have already been done. So till now what is the progress on that front, how many more vehicles did we do in this quarter?

Sanjay Kumar Jha — Managing Director

[multiple speakers] see there we have the order of almost more than 100 vehicles with us. So we are executing also for this quarter we are trying to touch around 65 — around 60 to 65 vehicles.

Amit Dixit — Investor Relations

That is by Q4 end.

Sanjay Kumar Jha — Managing Director

Yeah. Correct.

Amit Dixit — Investor Relations

Okay. Great sir, that’s all from my side. Thank you and all the best.

Sanjay Kumar Jha — Managing Director

New tenders are there in the market now, that also our team has participated and it is very huge quantities so there also we have put our participation is there, let’s see, if those things are there it will also add to our business.

Amit Dixit — Investor Relations

Great, that’s very reassuring. Thank you. Thanks a lot.

Operator

Thank you very much, ladies and gentlemen, that was the last question. I now hand the conference over to the management for closing comments.

Sanjay Kumar Jha — Managing Director

Okay, before closing comment we have — both Directors are available. So I’ll ask them to give some — their remarks and then we’ll close. So I’ll first ask Director of Finance to tell something here.

Gowri Sankara Rao Naramsetti — Director Finance

Good evening. As far as the Company’s performance is concerned you have seen for the three quaters it is equal to the last year, same with 21, 22, whatever performance is achieved, same performance level we have achieved despite the disturbance on the input materials like sir told Titanium sponge and these Ukraine, Russia war and some issues were there, still we could achieve the last year turnover. Always you see Midhani over the years fourth-quarter is the best quarter.

So this year also we are expecting the fourth-quarter.

Operator

Ladies and gentlemen, the line for the management seems to have disconnected. Let me reconnect them. Ladies and gentlemen, the line for the management is reconnected. Please go-ahead, sir.

Gowri Sankara Rao Naramsetti — Director Finance

Yeah, good evening, sir, this is Gowri Sankara, Director Finance. As you have seen for the last two-three quarters, performance is more or less equivalent to the last year, despite a lot of disturbance in the Russia Ukaraine war and the material supplies and all. Still, we have achieved the same performance and as you have seen for those last so many years for Midhani fourth-quarter is the best quarter same way this fourth-quarter also, we are expecting to achieve more business as we have come up with some more facilities like WPM, [indecipherable] with these facilities and Rohtak also which are all additional facilities compared to last year, which we hope with these facilities, we can do more business and we hope that we will achieve better than last year. Thank you.

Sanjay Kumar Jha — Managing Director

Okay. Now, I’ll give it to Director of Production and Marketing, Mr. Muthukumar.

T. Muthukumar — Director Production & Marketing

Good evening. This is Muthukumar, Director of Production & Marketing. As it has been indicated, though there is a sharp increase in the raw-material price as well as power and fuel we could able to maintain our last year performance this year also. And now since we have established the Wide Plate Mill, there is a much hope on the performance of the Midhani with respect to some special grades[phonetic] which developed one grade called superalloy 276, which is used in the energy sector and this sector about INR400 crores of the material, it is being imported by BHL. So this will be a direct replacement by Midhani in this sector. So this is a lot of hope on Midhani so that we can improve performance.

In addition to that Midhani has got the advantage of producing place, which is two meter and above, which is not there in the country and world wide also there are only four or five people only. So now, who are all using this wider Plate Mill with respect to gas walls, or oxygen plant so now they have to depend on Midhani and we already established the process. We are contacting with the parties to whom we can supply. So, with that coming years there is a good prospect for Midhani, so we can improve our sales over these products and definitely our performance will be better. Thank you.

Sanjay Kumar Jha — Managing Director

Okay, so at the end I will thanks all the participants and also the stakeholder first of all, putting faith on us and supporting us and I hope that our lessons will continue like this. And from the Midhani management I assure you that type of the committed people and committed team, we are having and type of the technological knowledge this company is having our next financial year or this year we’ll be giving good results to the investors and our country also is in a very good position as on today and then across the globe. So definitely, I see it as a good opportunity for Midhani also to contribute in the nation building and we are doing and as and when we will be doing certain things, new things will be there. We’ll be communicating to you with the different social media platform and also communicating for the proper statutory systems. Thank you.

Operator

[Operator Closing Remarks]