RAMKRISHNA FORGINGS LTD (NSE: RKFORGE) Q1 2026 Earnings Call dated Aug. 01, 2025
Corporate Participants:
Unidentified Speaker
Lalit Khetan — CFO
Milesh Gandhi — Whole Time Director
Milesh Gandhi — Whole-time Director
Analysts:
Unidentified Participant
Ozo George — Analyst
Mitul Shah — Analyst
Balasubramanian — Analyst
Dhaval Shah — Analyst
Aditya Agarwal — Analyst
Sunny Gosar — Analyst
Devang Shah — Analyst
Devang Shah — Analyst
Viral Shah — Analyst
Presentation:
operator
Ladies and gentlemen Kutri and Welcome to the Q1FY26 Annex Conference Call of Ramakrishna Forgins hosted by IFL Securities Capital Limited 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 now by pressing Star then zero on attached on phone. Please note that this conference is then recorded. I now hand the conference over to Mrs. Ozo George from IAU for Capitan. Thank you. And over to you sir.
Ozo George — Analyst
Thank you Muskan. Good evening everyone. On behalf of IFL Capital I welcome you all to the 1Q FY26 results conference call of Ramakrishna Forgings. I also welcome the senior management from. The management team we have Mr. Naresh. Jalan, Managing Director Mr. Chaitanya Jalan, Hold. Time Director Mr. Lalit Ketan, Hold Time. Director and CFO Mr. Millesh Gandhi Whole Time Director and Mr. Rajesh Mundra, VP. Finance and Company Secretary. Now I will hand over the call. To Mr. Ketan to take the call forward. Over to you sir.
Lalit Khetan — CFO
Thank you Joseph. Good evening everyone and thank you for joining us on the call to discuss the Q1 FY26 results. I trust all of you have a chance to look at the earning that we have shared earlier. Financial year 2526 has commenced on a challenging note. There has been a lot of noise on tariffs and the resulting volatility and uncertainty coupled with macroeconomic challenges has caused an environment where customers are hesitant to spend and OEMs are cautious in the projections. As a result, we also have struggled witnessed sluggishness in demand from our customers. To begin with, what’s top of the mind of everyone are the tariff recently announced by the US Administration including Dojan automobile and auto component imports.
While the space continues to evolve, we believe these measures will primarily impact demand. For in the short run there could be a scenario where some opportunity open up but there will be some disruptions in demand and supply. We have seen all. We have all seen the announcement from President Trump that tariff of 25% will commence from August 1 and are closely monitoring the development to ensure that we comply with all applicable regulations and any potential depression for our customers is minimized. Secondly, the other development that has emerged and this will impact all markets is the potential disruptions due to supply chain complexities and heavy lines on China for real earth material.
If China imposing automakers could encounter certain challenges on the top of these two development from a global perspective, coming to the India market we have seen the quarter one of the current financial year mixed trend with the headwinds with the and the muted industrial output, a bit slowdown in some of the industrial sectors and the IIP numbers etc. For commercial vehicles we saw volume decline in the overall market though at the RKFL we have been able to improve on our domestic performance. And further I would like to add commercial vehicle segment has been under pressure lately but signs of recovery are also emerging.
Coming to capacity addition, we commenced the financial year at the present capacity of 268,400 ton and we are in the process of adding our 8,000 ton baseline and 3,000 ton aluminum forging facility that will add capacity further by 43,000 metric ton during this year. Now let me share some financial highlight. For the first quarter we reported consolidated revenues of rupees 1015 crore that is higher by 6% on year. On year basis EBITDA excluding other income for the quarter is 149 crore which is lower by 20 crore compared to EBITDA of 169 crore. For Q1FY25 EBITDA margin consolidated stood at 14.6% and lower by 300 basis point year on year and profit after tax for the quarter is 12 crore compared to 55 crore in Q1FY25.
The above profit is impacted mainly during this quarter on increase of sorry decrease in realization and change in export domestic mix and the impact together of this change in mix and realization is about 40 crore which we have highlighted in our presentation also further there are impact due on the inventory valuations also on the warehouses overseas due to correction indexes. Apart from that there is a forex loss accounting in our JV Ram Krishna Titava Railway due to the on import of machines and it has now the machine has already reached the site. So we have to account for the forex loss and for our share we have to account for a loss of 6.664 in this quarter.
Apart from that we have also incurred a 5 crore loss in Ramakrishna Project Limited on account of import of machines which are under installation. So altogether there is an impact of about 52 core on the profitability during the quarter. Now I hand over the proceeding to Mr. Millesh for having you an update in marketing over to milesh.
Milesh Gandhi — Whole-time Director
Thank you. I would like to brief the audience. The company received new orders worth 660 crores in quarter one program life being four years and for railways we received an order of 23 crores for the one year period against the above, export orders are worth 502 crores and domestic orders are worth 158 crores.
In the domestic orders of 158 crores, 99 crores come from the off highway segment. 59 crores come from the commercial vehicle segment. In the exports against the 502 crores, 307 crores comes from the passenger vehicle segment, that is the TV segment. And this also includes orders directly from American OEM. Apart from that, 195 crores comes from the commercial vehicle segment and prominently from Europe. You’d like to mention in line what we had committed in the last quarter. Kindly note that 47% of our new order book for the quarter one comes from the passenger car segment and another 15% comes from the automotive segment.
We are maintaining healthy position in our commercial vehicle segment too by increasing our penetration in the European market. That’s from my side. Thank you. Thank you. Now I hand over the line to the moderator for having the Q and A session.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask question may press the R and one on the touchdown telephone. If you wish to remove yourself from question Q, you may press Star. Enter. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question is from the line of Matul Shah from Dam Capital. Please go ahead.
Mitul Shah
Thank you for opportunities. I have few questions starting with US tariff related impact in this quarter. How much impact? If someone has to gauge about that, we have to absorb the tariff before it gets negotiated or settled down between the same OEM customer. And what was the effective tariff rate we applied during the quarter on whatever we exported to North America.
Milesh Gandhi
For the quarter? 1. Our tariff rate for light vehicles, light LV and passenger vehicles was 25% flat as in auto tariff and for commercial vehicle it was 10. And I think going forward also as we see right now, the new tariff which has been announced is not going to be applicable on auto. Auto has been kept a separate field. So auto will continue to attract 25% in terms of passenger vehicles and 10% in commercial vehicle. As we understand today, unless there is a further change in terms of the final releases which come before 7th of August and as of now, whatever shipments we have made till now, I think what has we see on the finer prints will be charged at this rate unless there is a change in terms of the overall picture by the Trump administration in terms of what has been the Total outflow in terms of cash flow for the company it has been close to around for our US shipments is going at around 6 crore rupees out of which we have received customer confirmation to the tune of almost 50% of full pass on and balance for balance 50% we are still negotiating with the customers back and forth for the balance 3 crores to how and how much we will need to observe and how much will need to be paid by the customer.
So I think it is still a fluid situation. I think in going forward we will be having more clarity in next couple of months as to exact quantum of tariff in terms of outflow from the company or in terms of the overall basket of the company is done and how much is being paid by the customer. But as of now whatever we have clarity we have 50% which is being absorbed by the customer and 50% of the balance we are still negotiating. To just clarify your exact position to all our North American exports. Almost 80% of our exports going to Mexico which is not there in tariff and it is getting.
We are just supplying our goods into the manufacturing locations of the customer in Mexico and Canada. All these are basically not in tariffs. So only 20% of our portfolio to North America is getting into tariff which is directly getting into us.
Mitul Shah
Just clarification this 6 crore entire we have captured for the time or only 3 crore we have taken in P and L3 core we already got confirmation so not taken.
Milesh Gandhi
No we have not. We have basically not captured anything right now in our P and L. We have captured whatever customer confirmations we have received. We are captured in the P and L and balance. We have not yet captured
Mitul Shah
3 crore for that time. We have to absorb as a part of the.
Milesh Gandhi
No, but I, I I we still feel that it is receivable. I think we should be by end of. Because right now customer does not also have any certainty in terms of what is going the exact tariff. So I think by end of August we should have a complete clarity on this.
Mitul Shah
Right. So my question is that in this P and L we have taken the heat of 6 crore or 3 crore.
Milesh Gandhi
Right now we have taken. No we are not. No we have not taken any impact right now of the tariff in the pnl.
Mitul Shah
Okay. And the second question on the realizations is currency is already going adverse or favorable in terms of the rupee depreciation. Still our realization on export market as per the presentation has fallen meaningfully. So is it a commodity pass on or because of this terrorist thing or any price?
Lalit Khetan
No, it is basically I Think it is if you see the last quarter, last quarter currency if you are looking at it is in last 20 days currency has again come back. Otherwise currency year on year there was a decline in terms of last quarter. And also there has been a steel price decline in as far as index is concerned. So that steel price has impact. The fall in steel prices in the US market has brought the realization on the down downward trend.
Mitul Shah
Overall how much would be the impact of steel or how much steel price impact we have taken in terms of realization both for domestic expense export roughly per kg basis can you expect?
Lalit Khetan
Yeah. So 314 is on account of. And that on account of basically there cannot be continual against the steel and other area because indexes. So Overall it is 31.654 for the bottle.
Mitul Shah
Per kg. You are talking sir?
Lalit Khetan
Yes. On domestic side we have lost 8 rupees per kilogram. On the export side 5 rupees per kilogram.
Mitul Shah
Okay, understood. The last question on this new order of 500 crore plus from the export side we highlighted 300 crore from US OEM. So that is related to evidence like that aluminum business which we were expecting.
Lalit Khetan
No, it is. It is. It is. Yes. Aluminum forging is still work in progress. And I think we should start seeing revenues from this quarter end or October onwards from that field. But this new order book is from the new OEM from North America market.
Mitul Shah
That is from PV or cv.
Lalit Khetan
I think milish in the opening statement has already clarified that this new order book as we had said our increased focus on passenger vehicle. This entire new order book of 300 crores plus is from the passenger vehicle.
Mitul Shah
Right now. Thanks sir. Thanks a lot. I’ll fall back in the queue.
operator
Thank you. The next question is from the line of Bala Shrugmaniam from Aryan Capital markets. Please go ahead.
Balasubramanian
Good evening sir. Thank you so much for the opportunities. Sir, on that Mexico facilities I think the operation mentioning operations has begun. So what kind of contributions we can expect from FY26 onwards? And is there any plan to expand into Fujing side?
Lalit Khetan
I think in Mexico operations we are only going to continue to add machining operations. A value add forging and castings are going to be shipped from India and we have just started and I think by the last quarter we are supposed to increase our capacity and we are going to see significant revenue in FY27 from our Mexico operations.
Balasubramanian
Okay sir. So on the EV side we are investing 3,000 tons plus for aluminum 80 components. What is the addressable and how does this align with global OEM demand shifts.
Lalit Khetan
I think we are very very bullish about our aluminium forging and this is our first entry into non ferrous components and this is just the start of our investment into non ferrous. I think once we are able to successfully launch our non ferrous activity I think the demand side there is a huge potential globally in terms of aluminium forging. So we think that next level of growth I think in next couple of years is going to come from aluminum forging. Where we are looking at once we are successful and once we are able to utilize move to higher utilization in this current capacity of 3,000 tons we are going to just continue to replicate this capacity.
Balasubramanian
Okay sir. On the trial wheel JV side are we on track to commence the operation by Gant 2026 and what is the current status in the industry?
Lalit Khetan
No, I think for our wheel plant we are well on track and I think the plant is moving in a great shape and I think we are on track by to submit by last quarter of this financial year to start submit samples for approvals for Indian Railways and look at getting significant revenue of 40,000 wheels in FY27 from this joint venture. And I think as everybody knows this is a complete 80,000 plus wheels are guaranteed to be as an offtake plan. So we are not worried in terms of capacity utilization in this capacity.
Balasubramanian
Thank you.
operator
Thank you. The next question is from the line of Dharval Shah from Greek Capital. Please go ahead.
Dhaval Shah
Yeah. Hello team. Thank you for the opportunity. Opportunity. So a couple of questions from my side. So first is on the P L what will be the impact of the, you know the inventory correction which have been taken. So the ebitda margin is 14.6%. So if you can help me understand if I’ve adjusted for that inventory problem what would be the EBITDA margin. And related to that the warrant money. Which. Previously coming from the promoter side. So has any part of it come in the company and any timeline if we can help with and along with the current debt position of the company.
Lalit Khetan
I would like to address this question first on the promoter money. We are going to increase this money very shortly and we are waiting for the approval from the stock exchanges any principal approval which we expect that after this I think they were waiting for some formatting to be complied with and we are open. This will be done shortly and we expect the money in next two weeks time. Okay. There are no adjustment on account of inventory in the current quarter number. Okay. All the inventory investment has been done and accounted for till 31st March 2025.
Dhaval Shah
Okay, okay, okay, okay.
Lalit Khetan
What was the third part of the question?
Dhaval Shah
Yeah, yeah. So I’ll just take this sharp drop in EBITDA margin year over year. So how should I how should we read this margin? Is it because of a big operating B beverage? Because of only a 1% overall top line growth versus the our capacities as of, you know, as of last year and FY26 was the year of growth for us and now given the lack of demand the volumes wouldn’t have happened. So how should we see this margin trajectory going forward? And also this 14.6% margin can just help me understand the reason for such a drop.
Lalit Khetan
I think Dhaval, I think if you go through the presentation and as Lalit has explained in his opening remark, almost 40 crore rupees of effect basically has been in terms of realization in terms of our mostly in terms of our export and domestic steel price drop which has happened. And as you know that we have all we had already shipped this material beforehand and the consumption of this material has happened in this quarter. And the steel price decrease which had happened in on the 1st of April had to be absorbed in the cost itself. And customer as our basically the trend continues.
If there is a steel price drop in the quarter, the same has to be passed on to the customer. From the 1st of April to the 30th and similarly from the 1st of July there is a new pricing set in. So obviously quarter on quarter there is going to be a realization plus currency both playing together. Consider in considering March ending and in this quarter the currency and raw material pricing both have affected the realization in our exports. And as well as there is a drop in realization in the domestic market also due to steel price decrease.
So both taken together we have almost had a hit of around 40 crore rupees which has dented the margins. But in terms of overall performance of the company, the company still expects that steel prices to stabilize and company to get back into the stable margin regime.
Dhaval Shah
Okay, noted sir. And this also regarding discussion you discussing about the, you know, the accounting for our shipments, you know once it reaches the customers port. So is there also an impact because of that in this.
Lalit Khetan
No, I think that was one of. We have already taken in month of March and now we have the policy which was changed. I think that is in prevalence and I think accordingly you will see every quarter the things will continue in the same fashion. I think whatever happened in the month of March now has got taken into. Hello. Hello. Already it has been taken as A regular position. And that is the way we are now new normal for us.
Dhaval Shah
Yes, but in the base year those revenues were recorded in the other. So that’s why that next two three quarters we should see that impact. Right? Because in the days.
Lalit Khetan
No not two three quarters. I think it is. I think what you are seeing now is the worst behind us. And I think going forward you will see a stability things going on upper trajectory.
Milesh Gandhi
Okay. I would just like to further add one. There will be now no adjustment on the upward or downward side on account of that accounting and whatever be the market demand and supply chain accordingly the will be reported and that and in fact of that is now not there at all.
Dhaval Shah
Got it sir. And sir, what about the current gross debt net debt position and how do you see that over the next 2 3/4 developing?
Milesh Gandhi
So the current debt is about 1800 crore which was around March. We came out with the March same level. But if we expect the rate will go down which we also seen on that call. So at this rate. So by end of FY26 my debt level will somewhere around 14 to 1500.
Dhaval Shah
Okay. Okay. Got it sir. Thank you.
operator
Thank you. The next question is from the line of Siddharth Parc from SARS and B. Please go ahead.
Unidentified Participant
Good evening sir. Thank you for the opportunity. A few questions actually. So I’ll ask a question, wait for. Answer and then ask the next. That’s the best way to go forward. So firstly we have obviously reported a sharp drop in profitability. So if we were to adjust for the one time expenses that have happened, the losses on the currency etc. And let’s assume that that would have not happened. What would our profit have been in this quarter? Because you mentioned there was a margin shift due to domestic and export mix. So what would our profit have been had the one time machining costs and fee expenses not happened? Assuming they will not happen in the future.
Milesh Gandhi
So at the console level I think to honor of rough side, on our proximate side we should have been higher by almost 300 to 350 basis points.
Unidentified Participant
Okay.
Milesh Gandhi
Hello.
Unidentified Participant
Yeah, so 17 crore should have been say what would have been the ballpark number?
Milesh Gandhi
Can you repeat the question? It broke down in the middle.
Unidentified Participant
So I’m saying. So I’m saying the profitability right now is 17 crores. If we remove for the one timers that have happened including machine cost, currency cost etc, what would have been our profit number? If we take those cost as one time and then they won’t happen in the future.
Milesh Gandhi
You’re talking about the PAT number.
Unidentified Participant
Yes, pad number.
Milesh Gandhi
So what you have to look at price realization and the forex and that have been the IR. So 45, four have been added in the control for profitability and impact has to be reduced. So overall profit mar would have been on the console basis would have been higher by almost 40 crore.
Unidentified Participant
Almost a 40 crore. So we would have been somewhere around 57, 58 crores.
Milesh Gandhi
Correct.
Unidentified Participant
Perfect. Next question. Sir, how did we go wrong on the steel pricing? Don’t we hedge our steel and currency because in the future also steel prices may vary so we can’t have losses because of a change in steel prices.
Milesh Gandhi
I think steel prices we cannot hedge. I think we are buying steel in India and there is no hedge we can do in terms of steel pricing is concerned. Because when we export to US and our current all the contracts based out of us are based on steel pricing in US. So basically both are two different geographies and we cannot hedge in terms of steel pricings are concerned. So there is no, no, no formula, no place wherein we can hedge the currency money we can hedge the currency but we cannot create an hedge on steel pricing.
And basically one more thing which you will need to understand because it is when the customer consumes this part that is the time the invoice is rate. So we need to have with the current market situation we cannot predict when the customer is going to ultimately consume the parts. And and also second is that keep both geographies being different. If we start we may incur more losses if we start hedging and this crossover.
Unidentified Participant
Understood, Understood. So sir, next question. When we are exporting to Mexico this is basically to understand the tariffs impact. Are we basically exporting to companies that are manufacturing in US Basically US companies are not then exporting back to us or are we manufacturing sending it to our own plant which is then exporting to us?
Milesh Gandhi
No, we are sending to the companies who have manufacturing based out of Mexico and they are assembling it into their full assembled part or vehicle and then exporting it to USMCA.
Unidentified Participant
So in that and the USMCA is obviously 94 of those goods are not being tariffed anyway. So we’re not in any pressure that way.
Milesh Gandhi
Yes.
Unidentified Participant
So the conversation regarding our suffering on the US tariffs is basically misplaced because Mexico auto imports are a part of the NCA and we are exporting to American or other companies which are selling in Mexico sending to us. So there is no tariff impact per se on our case.
Lalit Khetan
Not tariff per se on our Mexican shipments are not There. But per se out of our North American export 20% directly go into us. Wherein we are, we are suffering this tariff intact. So that’s the reason I said that six crore rupees to the earlier question last quarter there has been an impact of 6 crore rupees on account of tariff.
Unidentified Participant
Understood sir. But considering a company of our size that’s a marginal impact versus what the street is estimating or I think street.
Lalit Khetan
Like for all our Canada shipments we have FOB shipments. So as such also we are zero impacted and the customer is picking up this and customer is paying for the tariff to Canada. And similarly for Mexico operations all our material goes into Mexico and is shipped to the local locations of the customer in Mexico. We are not impacted by any tariffs. For all our shipments to Mexico and Canada only shipments going into US are impacted. I don’t know why Mark, what market is formulating at. But out of our total North America shipments in terms of our exports, 20% of our exports directly go into us.
Unidentified Participant
Understood sir. So just another question on then. Is this the worst in terms of our margin performance and our pat performance and in the future considering the market remains as it is status quo. Because image for me it’s the worst for the market cycle right now. Are these the worst numbers RK4G is going to give and can we go back up to the 70, 75 crore profitability by next quarter or the next to next.
Lalit Khetan
No, I think in terms of profitability in terms of EBITDA levels I think with depreciation if you see at the console level we have a very high depreciation right now with all the new equipment and other things in place at EBITDA margins levels I think this is the worst which is there behind us and I think you will see a gradual and a steady recovery in quarter on quarter every quarter. And as already guided in our earlier calls also company is doing what is required to go back to the old margin days. And I think it is.
It should not be too long before we get to that place.
Unidentified Participant
Understood. This one a few more questions. Firstly big big compliments to Jalan sir and the family for standing by individual investors and and the market for providing the inventory losses from their own pocket in terms of taking warrants at 2100. So just a question on that. Since you mentioned two weeks may we are putting the money now we putting in the 25% or are we going to fully subscribe 100% to the warrants with the 200 crore amount?
Lalit Khetan
No, I think to answer question as guided in Our earlier call we are putting in 25% on an immediate basis as soon as we receive stock exchange approval. But as committed before the end of this financial year of FY26, the entire money is going to come into the company and the entire 200 plus crores are going to be paid in and converted to shares from warrants.
Unidentified Participant
Understood? Understood. And any sir, other opportunities in terms of what the business is looking at which is because I’m assuming with the tariff more Asana Bharat opportunities open up anything we’re looking at on that front. And secondly sir, since our exports, since a lot of our money coming from exports and the European market also and a lot of our CV orders have come from the European market. Any view on the market there and how is it performing? There’s such an uptick there because in the last call you mentioned that the CV cycle is reaching replacement demand and that orders will be placed.
Any views on that?
Lalit Khetan
I think Europe is doing extremely well for us. If you see the last quarter also Europe performance has been extremely good and I think what we are seeing right now is extremely good traction from Europe. And I can very confidently say in FY27 our revenues from Europe are going to equally match North American operations. So I think we are not going to be impacted or we are going to be only impacted for next couple of months for our North America sales. But Europe is one of the strongest market for us going forward and is going to make up more than what we are going to lose in terms of overall demand in North America.
We have not lost any business in North America. We continue to gain market share in North America but overall market demand per se is down in North America. That is what is reflecting in our sales in terms of our North America operations. But if the sales come back, I think North America operations are also going to equally do well for us with the new order wins both in non auto and auto which we have gained in last couple of months despite tariffs we have won 300 plus crores from PV application and rest. North America orders are from non auto segment.
So keeping together I think the flat for the overall exports we continue to ride on new order wins and we are extremely confident of doing well. To answer your second question, what more we are trying to do, we are increasing our wallet share considerably in the Indian Railways and I think I will be happy to say that we have just received approval few weeks back to supply the complete undercarriage in assembled form in Indian Railways for passenger coaches and which will give us an incremental revenue of almost 50 to 75 crores in this financial year and we are looking to do almost 300 plus crores of revenue in next financial year from only assembled under carriage for which we have already done and completed CAPEX in previous year and we were just waiting for final approvals from Indian Railways and the approvals are already in place last few weeks back and we are expected to supply the development orders which we have already received from railways for about 60 crores in this financial year.
Unidentified Participant
Why don’t we as the company disclose these to the exchanges, our order winds etc. It would add more to the investor sentiment per se. Regarding especially in tough times and tough markets.
Lalit Khetan
I think as a policy decision after what had happened in last year due to speculation because of our order win announcement we had had a lot of hard burns with our customers. So we have taken it as a policy matter to only do order announcements with our earning calls and not do midway any order announcements or anything related to that. So that is a policy decision we have made. We don’t want to antagonize any of our customers in export market or the domestic market and order means without customer name. Also there are a lot of speculations and this speculation leads to lot of heartburns at the customer end.
So basically we don’t want to add on to all these problems for us.
Unidentified Participant
Just one last question. This is more again regarding the markets in terms of have you been in touch with other mutual funds since over the last couple of quarters we’ve seen Aditya Birla and other Aditya Birla Sunrise has completely sold out its holdings of RK Fortunes and a couple of other mutual funds have also cut positions. Are we in touch with any mutual funds to explain to them how the company is doing what the company is all about to get better people on the cap table.
Lalit Khetan
We are always available to meet and receive any investors irrelevant of the sizes they are concerned and irrelevant of the background. We are happy to take them through the performance of the company, take them through the plans of the company and we are in always touch. Our IR people are always in touch with the investors and I think at the right moment with uncertainty. As the uncertainty fades away and as company performance improves, we are sure that investors will come back to the stock. It’s a matter of time. I think we are patiently waiting and I think that’s what best we can do.
We continue to work on what is there on the table for us and keep on performing, keep on navigating the tough times with new order Wins new geographies and new business opportunities in these tough times. I think that’s what is our job and that’s what we are doing continuously.
Unidentified Participant
Right sir, thank you so much. Just a couple of suggestions if you don’t mind. Since a lot of lay investors also go through the numbers it would be great if on a press release a obviously you talk about the order winds of the undercarriage and the kind of profitability we expect from it and the. Revenues we expect in the future. Secondly, in terms of this quarter optically the number of at pat looks really bad and the EPS looks really bad. So it will be great in the press release if you explain that the one times which have happened this time including the steel impact and the machine depreciation impact and the currency impact that would have been a north of 50 crores. So that would bring in a lot of confidence in terms of.
Lalit Khetan
I think. I think this real your suggestion, what you have given is correct. But if you see our presentation we have already explained the 50 crores why profit has been impacted line item wise. We have provided details in our presentation with the results. So if you go through the presentation you will be able to see this 50 crores impact we had mentioned line item wise what is the domestic and everything. But your suggestion is well taken and we will ensure more transparency going forward.
Unidentified Participant
Absolutely. Thank you sir. I’m an individual investor, recent new investor in the company after seeing that you had an inventory issue and then Mr. Jalan, how graciously he has decided to shield individual investors and retail investors by taking the hit upon himself and the family that the company really needs. Business wants to do well. Although I just have 1 lakh share but it means a lot that you’re giving us the time to small individual shareholders as well. Thank you so much and all the.
Lalit Khetan
Thank you. Thank you very much.
operator
Thank you. The next question is from the line of Aditya Agarwal from Old Bridge Mitchell Fund. Please go ahead.
Aditya Agarwal
Good evening sir and thank you for the opportunity and congratulations on good set of volume participate. So my question is on the. So firstly on the undercarriage order that you have got is this over and above the Vande Bharat order that you won maybe last year of 270 crores?
Lalit Khetan
Yes, that is over. Over and above order which we have received that is from BHEL and that is a private sector. Now what we have received approval also from Indian Railways and the order of 60 crores from Indian Railways directly to supply complete assembled undercarriage.
Aditya Agarwal
And what’s the. What’s the status on that order, have you started the production or are we still in progress on that?
Lalit Khetan
No, we have already started proto manufacturing and I think we should by October we should submit the proto design and everything else has been approved by bhel. Proto submission date is October and we are well on track to submit it within October or the proto submission is going to happen and we have an obligation to supply I think milish, what is the exact quantum by March we are going to supply.
Milesh Gandhi
So basically for the first two train sets, that is the first two train sets of 16 coaches each, we will have 32 bogies. So total 64 we need to complete by March.
Aditya Agarwal
Okay, okay.
Milesh Gandhi
The 64 is going to go to one day Bharat and the Indian Railway order is going to also. Also directly go to Indian Railways which is going to. We are trying to get that also completed. Our wish list is before March year end.
Aditya Agarwal
All right, so my second question is on the newer, much newer segment castings. So if I look at the differential between console numbers and the standalone numbers, the amount comes out to be 78. So is this, this number should all be proportional to the casting segment.
Lalit Khetan
Can you repeat the question please?
Aditya Agarwal
Yeah, so yeah, so my question was on the castings part. So in standalone we basically report the forging piece of business and with the new restructuring we have done the castings that come into console business. So in this quarter the difference between the standalone and consolidated is close to 78 crores. So should we proportionate the 78 crores into the castings fully to the casting segment.
Lalit Khetan
And little bit from your.
operator
Sorry to interrupt sir, your voice is not clear properly.
Lalit Khetan
Hello. Are you getting my voice now?
operator
Yes sir, now it’s better.
Lalit Khetan
Hello.
operator
Yes sir, now it’s better. Go ahead.
Unidentified Participant
Yeah, so I was just clarifying it’s largely to the casting business.
Aditya Agarwal
Okay, so given that if I compare this number to last year, last year this number would have been around 73 crores. And given that we have given a very healthy show in the domestic volumes and forgings. So what is the kind of ramp up we are looking in the casting segments? Like what is the current utilization of the capacity and what is the volume that has picked up in the casting casting?
Lalit Khetan
To answer your question, we have the capacity which we had acquired is almost running at 90% plus utilization. I think new capacity which we have set up of is going to go into production or trial runs I think in next two weeks time. So we are hoping to offer a higher utilization costing in this quarter and in next quarter for to go almost to A monthly run rate of 6,000 tons. So I think we are looking at almost in the next half to double our top line from the casting.
Aditya Agarwal
Currently running at 90% utilization, right?
Lalit Khetan
Yes. A new facility of the casting. The addition of addition of the casting facility which we have done for a close to 140,000 metric tons is going to go into trial runs in next two weeks time. So that capacity is going to add up to this I think almost two times the capacity we have new put up. So this is going to create revenue in the next half of the year for us.
Aditya Agarwal
And you are looking at 6,000 tons of monthly volume of tick, right?
Lalit Khetan
Yes.
Aditya Agarwal
Okay. So what will be the full. I guess the full capacity after the new addition will be close to 63,000 or 64,000 tons, right?
Lalit Khetan
Almost around we are looking at 70,000 tons per annum.
Aditya Agarwal
Technically we are looking at 100% kind of utilizations from day one.
Lalit Khetan
No, we are looking at 90%. We have a confirmed order book from castings and I think we are just waiting for the. And the entire capacity as soon as it comes. We are looking at in the next next half to go to almost 85 to 90% utilization from carbon.
Aditya Agarwal
So if I just may ask what would be the part and realization in the casting?
Lalit Khetan
Can you pertain what is the realization? Castings.
Milesh Gandhi
So it’s.
Aditya Agarwal
Your voices. Voice is cracking. Really? Sorry. Yeah.
Lalit Khetan
So it’s a range between 120 to 150 rupees per kilogram.
Aditya Agarwal
Okay. And this all will be machined, right?
Lalit Khetan
Yes. 99 of the castings we are supplying is in machine condition.
Aditya Agarwal
Okay. Okay. Thank you. Thank you for that. And just one bookkeeping question this quarter our other expenses came and around, I’m saying for the standalone business per se, 197crores other expenses which was down last quarter from last quarter, 5% on a YoY basis as well as 4%. So what has driven this? Given the downward trajectory of these expenses.
Milesh Gandhi
I think you will continuously see downward trend in terms of our other expenses. I think with the kind of cost cutting and other things we are able to do, I think you in terms of processing charges and other things, the way we are now, right now working on it, you will continuously see a downward trend in other expenses for near future. And that will be the new norms going forward in rks.
Aditya Agarwal
Okay. Okay. Thank you.
operator
Thank you. The next question is from the line of Sunny from MK Ventures. Please go ahead.
Sunny Gosar
Yeah. Hi. Thanks for taking my question. Basically I think this has been asked before but I would still like to understand this rate impact and mix impact on the inventory. Basically, while we understand that there is some rate difference in the export and some inventory which is lying in the warehouse, but there is a 24 crore impact on the domestic tonnage due to realization. But wouldn’t that mean that although the realization has dropped, our raw material cost also would have like steel prices also would have dropped and that impact should have gotten neutralized. So like how is this impact of 24 crores coming from the domestic volumes? And isn’t this like a routine like routine phenomenon in the business or is this like something which has come come up one time?
Lalit Khetan
No, I think Sunil, to answer your question in terms of domestic realization, we the market did not go up as we had planned the inventory. So basically you can see that there is an inventory hit because an inventory it is. You are right when you say that whatever steel price decrease happens is also happens in the with the steel mill suppliers. But steel mill supplier does not give us for the reduction based on whatever inventories we have in the system or inventories we carry through. So although all that hit has to come into the P and L and we have to observe as suppliers to the OEMs going forward.
Yes, we have already started getting new pricing inventories which you will see in coming quarters. This will not get reflected in the balance sheet in the P and L in terms of our exports. The realization the shipments which we had already done with the previous raw material and US raw material has dropped more than the domestic raw material. And that’s the reason we have a higher hit in terms of the overall shipments to the export side. And that is coupled by the currency.
Sunny Gosar
Also got no export. I think is well understood. But domestic was something. But basically what you’re saying is that you had excess raw material in the in the opening inventory which was at a higher cost. And basically your selling price is determined on the current running price of steel.
Lalit Khetan
Yes.
Sunny Gosar
And as you basically ran down the old raw material inventory, your cost was to that extent higher. But realization was based on the current pricing which kind of impacted the margin in this quarter. Now basically your current closing raw material inventory and the realization that you’re getting from the customer is in line with each other. So that impact will effectively not get carried forward in the future quarters.
Lalit Khetan
Yes, you’re right.
Sunny Gosar
Got it. And second on the mix impact, while I understand a higher domestic mix should impact your percentage margin because your export margins in terms of percentage is better. But like how does the mix impact in terms of the absolute EBITDA like how, how is that?
Lalit Khetan
I think in terms of our overall exports our realizations are at least 150 basis points or 200 basis points higher in terms of profitability from the domestic supplies which has been impacted basically because of mix change domestic going higher and exports going down.
Sunny Gosar
But that. Got it. Got it. Okay. And basically this 5 crore forex loss impact on import of capex of say 5 crore standalone is above EBITDA impact. So basically net net for about 45 crores of impact would be above EBITDA and this crore is coming as part.
Lalit Khetan
Of JV and it is directly get knocked off in the pvt. Got it. Good.
Sunny Gosar
And would it like in terms of the normalized margins. So like if we adjust the 300bps approximate 300 350bps of margin impact from in the current quarter so that number comes to about 17 to 17 and a half percent which is kind of still lower than your erstwhile margin of 21 22%. So is there a pathway to to.
Lalit Khetan
That 20 sunny I have answered this question previously also with the storm we have weathered in previous quarter and I think you will see a quarter on quarter continuous efforts with margins getting improved. And we are very hopeful by the Last quarter or first quarter of financial year FY27 we should be back to our old days of margins on a standalone basis. And while casting business gets consolidated casting business while we will be able to crop a very high level of revenue and utilization with the kind of order wins we have and with the kind of traction we have from the customer.
But that will never be a 2022% margin business for us. Casting will always remain to be a 1617% margin. So on a blended level we are looking at almost margins on a standalone. RKFL should get back in next three to four quarters back to their old margins business. Got it.
Sunny Gosar
And just one last question. Basically your export pricing is on a quarterly basis but you’re like how often your domestic pricing is with the like how does it get repriced on in the domestic market?
Lalit Khetan
Domestic market it depends on the OEM directly negotiating with the raw material supplier. So we have no role to play in that nor there is any index based on that. It is basically the raw material supplier negotiates directly with the OEM and as we receive information from the OEM on the quarter basis it immediately takes an effect. But everything whatever happens happens on starting of the quarter and is applicable for the entire quarter. There may be price rollover also there may be a price Change also.
Sunny Gosar
Got it. So this quarter, unfortunately you got caught in the wrong cycle with high inventory and basically on say the starting date, the OEMs negotiated a lower price with the steel.
Lalit Khetan
Yes.
Sunny Gosar
Thank you. Thank you for the detail.
operator
Thank you. The next question is from the line of Devang Shah from AssetsI Meta Investment. Please go ahead.
Devang Shah
Good evening sir. Just to ask you the way earlier we guided very optimism as far as our revenue top line and bottom line. We can understand last quarter there was some kind of inventory correction and in the initial remark of your commentary today you have mentioned some kind of slowdown and certain global related challenges is impacting the company’s performance. But you know, certain also opportunities also you have shared in this particular call also.
Lalit Khetan
So just I would like to know. That you know our aspiration to have some kind of, you know, 25% kind of top line growth and as you have mentioned gradually we will come back to our normalcy of a margin of you know, somewhere 22% so it will not be a true longer. Also you have mentioned to earlier part of. So that’s what the only question that in this particular financial year can we able to, you know, have a such kind of, you know, achievement by the end of FY26. I’m not talking about the quarterly performance. I can understand it may have some kind of challenges.
But my question is that by the end of FY26 we can have some kind of, you know, possibility of achievement or top line somewhere close to 25% and also come out to a some kind of 22% or you know, some kind of plus minus margin relatively, you know, close to that.
Milesh Gandhi
To answer your question, I think in opening remarks of Lalit, whatever he has said is based on tariff and other things what are applicable and what is concerning the market and what is our view related to the tariffs and other things. It does not mean that we are not working on are not burning midnight oil to ensure that our performance does not decline vis a vis the industry. And as in the past, we have always outperformed the growth in terms of the whole industry and we will continue to do so. And as we have guided in our previous call, we have never guided for a 25% growth on a yearly basis but we have guided for a volume growth of 15 to 20% and with the kind of capacity and other things are coming in place in next two months.
And I think as guided in our earlier call we had clearly said that almost 80 or 90% of our entire project to increase capacity both in castings and forgings are going to be in place by end of September. So once all these capacities are in place, we are looking to have a very healthy second half of the year. And we still believe that that this phenomena of market slowdown is not a long lived situation. And I think for the full year basis we will be on a growth trajectory in terms of overall volumes, in terms of our top line and in terms of bottom line on a standalone basis.
We are very confident that every quarter on quarter there will be significant increase and we will strive to get to the old days of profitability of the company on a standalone basis. The new capacity which is getting added in castings. Casting will never be a 20 to 23% business for us. And as guided earlier also, while we will get significant volume and significant top line from our casting business which is 100% subsidiary of RKFL we will outperform the industry both in terms of volume growth and in terms of profitability in the cast also.
Devang Shah
And my second question. So as we. You already mentioned that due to tariff related challenges that’s what we are now witnessing as far as you know general geopolitical situation is concerned. You know as we come out any kind of, you know, solution through terms of, you know, trade agreements kind of thing. Do you see your you know the situation and the outcome may change in the coming quarter as well. That’s what something possibility.
Lalit Khetan
Right now. Right now like I said in to earlier question, we have learned to live with 25% auto tariff which is being in. Which is in place. And I think we are in process with discussing with all our customers and all our stakeholders for all our US shipment. Again I would like to stress on that our total North America exposure only 20% of our shipments go directly into US which is. Which is as of now last quarter has been impacted by almost tariff of 25% which is 6 crore rupees. And on a full year basis.
Also if you can see the 6 crore if it. I can if I put in a full scale basis also it’s going to be 20, 25 crore rupees on the full balance sheet. So basically we are looking at this kind of tariff numbers and we are negotiating with our customers to perform 100% pass on. We have almost received 50% confirmation from our customer for 100% pass on. And we are not speculating in terms of how what there is if there is going to be an FTA what changes it can happen and how much time it is going to take.
I think it is very difficult for us to do those guesswork and I think we are not looking at or not speculating based on what FTA brings us, what finance. If anything happens on the downward trajectory it is good for us and but we are getting prepared ourselves with the current numbers and we are working with our customers on the current numbers. We are just waiting for demand outlook to improve and as you may be aware or you may be seeing the details, overall auto industry in US is suffering very badly for this tariff related issue and I think we will just need to wait on the sidelines and watch how the demand side improves.
Devang Shah
Understood sir, thank you so much and wishing you all the best.
operator
Thank you. The next question is from the line of viral Shah from Enam Holding.
Viral Shah
Yeah, hello. Thank you for the opportunity Sir. Some of my questions have been answered. Just one clarificatory question. You said you expect to reach 21 to 22% EBITDA margins by 20 Q4 of 26 or Q1 of 27, is that correct?
Milesh Gandhi
Yes. On a standalone basis?
Viral Shah
On a standalone basis. And then how are you looking at these numbers in the next year?
Milesh Gandhi
Do you think there is scope for further improvement or do you think the.
Viral Shah
Stabilized margin should remain at 21 to 22%?
Milesh Gandhi
I think as a company we are always working to improve margins and I think with the capacity utilization improving with the kind of new capacities getting augmented by September, our aspiration is to be on the upward trajectory of the margins. I think with our acquisition stabilizing and I think the crankshaft machining plant which is merged with rkfl, I am happy to state that from this quarter onwards we are going to start seeing profitability coming in from there because the utilization level has improved and we are looking at on a full year basis to get a significantly good time top line from those facilities.
So these are all going to be an improvement side in terms of the overall margins. But to be very cautious we are taking a longer lead time in terms of expectation building in terms of our investors. We don’t want to over commit and that’s the reason we are building in five quarters from here when we when on a safer side to be hitting those margins on a standalone basis.
Viral Shah
Sure sir. My next question is on your expected outflow towards capex and investments in the current year and accordingly how are you also looking at the net debt progressively.
Lalit Khetan
Coming down because you also had an. Elevated working capital last year.
Viral Shah
So how are you looking at both?
Lalit Khetan
I think Lalit has answered to this question. We are looking at almost 300 to 400 crores decline in our net debt levels on a console basis and by end of FY26 and basically right now the current net debt is close to 1800 crores which is same as what was the closing of March 25th balance sheet and we are looking at this year to end somewhere in 14 between anything between 14 and to 1500 crores.
Viral Shah
At debt of the company at a console level. And so what is the assumption of capex and investments in this? I think in terms of. Lalit can you give the exact numbers of investments and capex?
Lalit Khetan
So coming to the investment part we have already invested 374 in the GD so 230 or more will be invested under 54 odds to further be invested in JV in next one year time and coming to the Capex part there will be a CAPEX of 354.
Viral Shah
I’m sorry to interrupt so your voice is not clear properly slide breaking.
Lalit Khetan
Yeah, I think it’s better now. Yes. So coming back so Capex for the current year is 300 to 350 gold and I’ve said the investment we have already invested around 370 crore in the JV 234 both partner together will further in use so about 115 code will be hours here in the investment. So 415 to 450 crores is the. Kind of outflow that you will have. This year from Capex investments.
Viral Shah
Yes. Okay just lastly so a clarification what should be your tax rate in the standalone business this year?
Milesh Gandhi
So see tax rate is 25 only and but we have not provided for any tax on account of merger with the ACIL and only there is a correction in deferred tax asset which we created in last quarter.
Viral Shah
Okay, got it. Okay, thank you so much.
operator
Thank you. The next question is from the line of Hardik from SP Dala and associate. Please go ahead.
Unidentified Participant
Very good evening. Thank you for the opportunity. I just had two questions so first what is the long term strategy going ahead for rkfl? So what I mean to ask is are there any new products under development or. We are looking to consolidate the casting and forging traditional business that has been going on.
Lalit Khetan
No, I think we are working aggressively in terms of new product developments. I think like I answered the real question. We are like we have just received approval for complete assembled undercarriage for passenger vehicles and we look at extremely solid set of numbers coming in next couple of years and with the passenger vehicle segment growing in Indian Railways significantly I think there is a lot of work to be done and lot of revenues to be created in next years in coming years. And I think this is a significant milestone in terms of the overall development of these assemblies with mix of forging, fabrication and casting together.
So I think that that’s one of the game changers which we have been able to get an approval in a very short span of time and a development order I think my marketing people have done an extremely good job by getting an order which worth about 60 crores which we are going to fulfill by March 26th and look at a bigger chunk of business in next financial year. To be more precise railway buys close to around thousand to 1500 crores worth of fully assembled undercarriage per year for passenger coaches. So I think for next year onwards this entire post, this completion of development order will be eligible to supply for the complete kitty and we have set up a very significant capacity for this.
So we are looking at to do a significant number going forward in next years onwards in this undercarriage itself.
Unidentified Participant
Got it. And sir my second question was since you said the casting business is a 16 to 17% EBITDA business so on a blended basis what margins should we expect on the consolidated front for the next 23 years?
Milesh Gandhi
Nalit. So look at, if you look at the casting plus forging EBITDA margin branded basis so casting business will be somewhere around. If you look at the next year will be 20 to 25% of our business altogether on the full year basis and if there is a 5 to 6, 500 to 600 basis point gap so there will be 100250 basis point overall reduction in from the standalone to console number. So we suppose we reached to a 22 22% of EBITDA so console level it will be somewhere between 20 to 21.
Unidentified Participant
Thank you so much.
operator
Thank you. The next question is from the line of Mitul Shah from DAM Capital. Please go ahead.
Mitul Shah
Thanks for follow up opportunity. So first question on this railway JV as per presentation this 2000 crore capex is on and nearly 350. 360 crore equity infusion is already happened. So what would be the date component or right now what is the current debt on JV or how much total debt plus equity is invested so far.
Milesh Gandhi
So the construct of JV is 70307838 equity. So 30% of equity constitutes the 370 what we issued and proportionate amount of about 900 code has been dipped so total is about 1274 is invested so far in the JV.
Lalit Khetan
Answer to your question to answer your question. The 2000 crores project investment is in two phases. So first phase will not require the entire 2000 crores. We are looking at close to around 1600 crores to be spent in this first phase where we will augment a capacity of machined finish hundred thousand plus wheels which will suffice my requirement for Indian railways up to FY28. So second phase of investment of 400 crores which is going to happen is going to happen. Once we have a utilization level of 100,000 plus wheels sent to Indian Railways then only we will invest the second phase to augment full capacity of 200,000 plus wheels.
Mitul Shah
Okay, so incremental only nearly now 100120 crore equity infusion is pending for first phase and another 300 crore could be the date, right?
Lalit Khetan
Yes. That is also like a nearly thousand crore debt on JV apart from our existing this 1800.
Mitul Shah
But I think the JV JV does not carry this in terms of RK fill console is concerned. And neither this balance sheet is getting consoled in RKFL right now. So obviously this debt is not and that is entirely on plant and machinery and land bank of the JV which is concerned.
Lalit Khetan
And second sir, just a clarification on this impact we have. We have highlighted in our PPT mix as well as this raw material Tthing nearly about 40 crore seems to be because of this raw material thing. As you explained earlier in carry forward inventory at a higher cost material purchased in previous quarters. But this 11 crore forex impact is again on the import of the capex. So that would be part of the balance sheet. Or we are factoring that CAPEX related impact also in P and L. So. I think RKLS on a standalone basis is about 5 crore rupees that is above EBITDA. And the balance on the JV which is there that is part of PVT. So I think on the console basis this entire quantum of 15 crores has been or 16 crores has gone into the balance sheet. On the standalone basis everything is part of EBITDA. So 454 EBITDA and you can show the on the control basis again 6.64 of JB also rooted through PL only as a separate line item. So everything has been rooted through pl. Nothing has been rooted through this balance sheet.
Mitul Shah
Okay sir, understood. And as we highlighted about 300350 basis impact is at a EBITDA level, right? Yeah, we highlighted that impact of 300, 350 basis because of this raw material. Then we have to pass on the benefit immediately. So that implies nearly 35 crore kind of a 30 to 35 crore on absolute basis. You have to of 25%. So it comes to around 34.
Milesh Gandhi
4. That is 300 rupees.1. Post tax impact we are considering. Lastly sir, if you assume raw material prices steel prices doesn’t change Q1 Q&Q2 so can we expect direct this benefit or impact going away and 300 basis type of a jump in profitability Q2 itself. Or we see that every quarter we may realize just 5060 basis and gradually will go to this 200300 basis improvement overall by Q4.
Mitul Shah
Can you answer to the Metro’s question.
Lalit Khetan
So what I understood from your question what you are asking next quarter how the margin will move the question my.
Milesh Gandhi
Point is that if the raw material steel prices remains flat Q on Q in this quarter Q2 itself so can we realize this entire 300350 basis benefit in Q2 it itself for this journey to improvement of 300 basis will be gradual with a 50 hundred basis every quarter improvement till Q4 or next. So it’s not that simple. It’s not that simple because it depends lot of things. So they see the domestic export mix plays a big role. Here you see realization and the mix. So you have seen the mix has changed. If mix move positive rather from 64, 30 is more 6040 it will have more positive impact. If you mix remains like this, there will be no improvement on that count. Certainly price realization and product mix also has to play role. But certainly the inventory correction part will be not there. So there will be improvement. But it’s very difficult to quantify in terms of basis.
Mitul Shah
Okay. And sir, last one thing again as we highlighted our ambition to reach to 21, 22% EBITDA margin by fiscal end or maybe next year first quarter. So if we look at the historical peak margin of about 22% and if we consider the inventory related error in past one or two years then adjusted realistic margin would be somewhere closer to 20% as we calculated 200 basis impact of the inventory. So do you mean that we would surpass that historical peak also in next three four quarters and we’ll go to 21, 22%.
Lalit Khetan
Mitchell, as to answer this question previously that previous participant also asked in terms of all our other expenses, if you see we are working significantly in terms of our cost structure and there has been a significant reduction Q on Q and year on year in terms of our other expenses and you will continuously see improvement in terms of our other expenses. I think it is journey which we have started and I think in next four to five quarters from here what inventory related was one of time issue on a standalone basis. With the kind of capacities which we are building in the next two months most of the capacities are going to be in place.
With this we are very confident with the kind of order wins we have had in having exports and the domestic. We will be able to surpass our previous margins in next couple of quarters.
Mitul Shah
You are really great sir. Great and all the best sir.
Lalit Khetan
Thanks.
operator
Thank you ladies and gentlemen. As that was the last question for the I know handicapped. Over to the management for closing comments. Over to you sir.
Lalit Khetan
Thank you. I would like to thank all the participants for taking our time to join our earnings call. I hope we have been able to answer and address all your queries. For any further information can get in touch with US or with CDR India. On behalf of Ramakrishna 4 weeks limited we wish you all a very wonderful wake ad we look forward to interacting with you again in the next quarter. Thank you very much for talking taking up our time again. Thank you.
operator
Thank you. On behalf of ICI Securities Capital Limited that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.