Ratnamani Metals & Tubes Limited (NSE: RATNAMANI) Q2 2025 Earnings Call dated Nov. 18, 2024
Corporate Participants:
Manoj Sanghvi — Whole Time Director and Chief Executive Officer
Vimal Katta — Senior Vice President, Finance & Accounts and Chief Financial Officer
Analysts:
Sahil Sanghvi — Analyst
Muskan Rastogi — Analyst
Abhishek Ghosh — Analyst
Dhiraj Dave — Analyst
Ashutosh Tiwari — Analyst
Dhananjai Bagrodia — Analyst
Aasim Bharde — Analyst
Sriram R — Individual Investor
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to the Ratnamani Metals & Tubes Limited Q2 FY ’25 Earnings Conference Call hosted by Monarch Networth Capital. 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]
I now hand the conference over to Mr. Sahil Sanghvi from Monarch Networth Capital. Thank you, and over to you, sir.
Sahil Sanghvi — Analyst
Thank you, Darwin. Good evening to everyone. On behalf of Monarch Networth Capital we welcome you all for the 2Q and first half FY ’25 earnings call of Ratnamani Metals & Tubes. We are delighted to host the management of Ratnamani. And from their side, we have Mr. Manoj Sanghvi, Chief Executive Officer; and Mr. Vimal Katta, Chief Financial Officer.
So without taking much time, I’ll hand over the call to Mr. Manoj Sanghvi for their opening remarks. Thank you, and over to you, Manoj sir.
Manoj Sanghvi — Whole Time Director and Chief Executive Officer
Thank you, Sahil. Good evening, everyone. I welcome you all to this call and hope everyone is doing good. Let me first take this opportunity to wish you all a very happy new year and seasons greetings from Ratnamani. Our results for Q2 and half year have been uploaded on the exchanges, and I believe all had the opportunity to go through the same.
On a stand-alone basis, in quarter two, our company has clocked the revenue of INR917 crores and EBITDA of INR168 crores for the half year. The revenues were INR2,039 crores with EBITDA of INR335-odd crores. The EBITDA margin expanded in Q2, but for the first half, it was broadly in line with our target range. A bit higher side of the band due to the better export product mix and lower input prices. We are confident of maintaining our EBITDA margins as guided earlier on an annualized basis. However, on the revenue front, some dip may be witnessed. The dip is basically because of the soft metal prices and delay in some projects and offtake at the end customers end.
As you all know, past few months, demand in oil and gas remains subdued in India but has been good in MENA region. In the last quarter, we witnessed some slowdown for dispatch clearance from customers due to seasonal factors and the project delays, but things are looking better now and expected to improve in future. Due to soft and stable steel prices, our industry has seen good demand in two water segments, industrial and exports. However, the domestic oil and gas projects and CGD business is expected to remain muted for near future and yet to show signs of any pickup.
But the business traction in the other segments like water line pipes, industrial supplies and SS pipes and tubes continue to remain quite encouraging. Presently, all our plants are operating at 50% to 60% utilization, except the ERW pipes, where the demand load is quite low. Our orders on hand as on 1st November was approximately INR2,900-plus crores.
In line with our strategy to invest further into specialized and high value-added products with improving efficiency and utilization, we have decided for setting up cold finishing project out of India. When we meet the — for the next call, we shall share more details about this project. At this stage, we can only reveal that the broader project cost is estimated around USD40 million. We have commissioned our project for manufacturing of heavy-thickness pipes. This will further enhance our product basket for specialized applications and have started getting good response from the market for this segment. As we move forward, we are seeing more sustainable growth with product bouquets and approvals we have, best in segment facilities with benchmark qualities, operating and financial leverage we enjoy.
Now regarding our subsidiaries, Ravi Technoforge has clocked total revenue of approximately INR138 crores, with operationalized EBITDA margin of approximate 10-plus percentage. On the year-on-year basis, the revenues increased by 11% despite soft steel prices. EBITDA grew marginally by 4%, but profit declined due to higher depreciation and interest costs because of capex.
As informed to the exchanges, we have completed the acquisition of another 27% at INR81 per share, which was based on the financial metrics and customary adjustment as per our agreement. As informed earlier, we are putting up some more automation and value addition facilities. We are also setting up an 8-megawatt captive solar power plant and expect the same to be commissioned in next four months to five months. Our few developed products could not be commercialized due to geographical disturbances at the target customer side. Domestic demand seems to be stable and expecting demand from Europe and US to start showing signs of recovery in quarters to come.
For our spooling business, we have started commercial supplies for basic hangers and support systems. We expect our pipe spool business to commence within this quarter. The order booking and expansion program is largely on track, and presently, the complete focus is on executing jobs and developing capabilities.
That’s all from our side. Now I would like to invite questions from the participants. Thanks.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. [Operator Instructions] We have the first question from the line of Muskan from B&K Securities. Please go ahead.
Muskan Rastogi
Hi, sir. Thank you for the opportunity. Sir, the joint venture with 61% [Phonetic] stake that we have with Technoenergy, that is a group based out of Switzerland. What would be the business opportunity from the products and the spooling umbrella and domestic and in exports? And how easy is it to get the customer approval and their acceptance? And also, are there any other competitors to cater in this space?
Manoj Sanghvi
Okay. So to answer your first question, that is — as we speak, we have close to order backlog of INR650 crores for the pipes spool business. Customer approval is in place. Execution will start — we will see some dispatches in this quarter and some in the next quarter. However, most of it will be dispatched during the next financial year. So this year, our target for the spooling business is close to INR150 crores.
Muskan Rastogi
Okay. All right, sir. And sir, how many competitors are there to cater in this space, in this spooling business, and what’s the…
Manoj Sanghvi
There are a lot of pipe spooling fabricators in India. However, they are mostly into oil and gas segment. Whereas what we have — what orders on hand we have is from the nuclear division. So not much competition at the moment for the nuclear projects.
Muskan Rastogi
Okay. And sir, like what’s the demand scenario in spooling business in domestic and in exports? What’s the opportunity there?
Manoj Sanghvi
So not only in India, but our partners — along with our partners, we are bidding for projects overseas also. So we are quite hopeful that going forward, out of the total spooling business, 75% would still come from the nuclear business, and 25% would be from the oil and gas segment two, three years from now.
Muskan Rastogi
Okay, sir. Sir, you mentioned in the con call that JV will help to cater oil and gas and thermal business and nuclear plants like you mentioned right now. Can this spooling product contribute to INR500 crores revenue in the next four, five years? And also, can you please guide us on the EBITDA margins that we get under spooling and auxiliary products?
Manoj Sanghvi
So as we speak, we already have orders on hand close to INR650 crores. INR150 crores is our dispatch plan for this year. Next year, we will target anywhere between INR400 crores to INR500 crores. And EBITDA margin would be similar to our blended EBITDA of metals and tubes today.
Muskan Rastogi
All right. Okay, sir. That’s all from my end. Thank you.
Manoj Sanghvi
Thank you.
Operator
Thank you. [Operator Instructions] We have the next question from the line of Abhishek Ghosh from DSP Mutual Fund. Please go ahead.
Abhishek Ghosh
Yeah. Hi, sir. Thanks for the opportunity. Sir, just wanted to understand in terms of the bid pipeline, how is it looking both in the line pipe and the process pipes both at the carbon and the SS segment of it?
Manoj Sanghvi
Abhishek ji, thank you. So as indicated in my opening remarks, line pipes, oil and gas, the demand is still quite muted. We are expecting some tenders. However, the timelines at the moment, it is very difficult to say. SS process — SS and carbon steel, both process pipes, the demand in India is a little bit on the lower side. However, there is a lot of traction from Middle East, and we’ve been receiving a lot of orders from Middle East for the same.
Abhishek Ghosh
Okay. And sir, in terms of the water projects and the oil and gas in India, anything in terms of traction in the second half or going forward? So far, we had election and the monsoons, how should we look at it from a 12-month to 15-month perspective? Anything to demarket between oil and gas and water segments, sir?
Manoj Sanghvi
Yeah. So water — see, we had — if you see the order backlog, we had quite a good substantial order backlog from water segment also. However, because of monsoon, the uplifting of pipes in this quarter — in the previous quarter was less. So in this quarter and the next quarter, normally, all the water pipes because laying activities are much faster. So we — in the next two quarters, we are going to see covering up basically.
Abhishek Ghosh
Okay. And if you’ve kind of set out earlier, but broadly, you’ll be able to maintain the growth of 8%, 9%, or that kind of a growth one should expect in the current year given that second half is going to be strong or give a higher upliftment and other things?
Manoj Sanghvi
So stand-alone basis, I would say we would still be close to between INR5,000 crores to INR5,200 crores. So yes, we still maintain that there would be a growth of 8% to 10%.
Abhishek Ghosh
Okay. So that visibility is there. It’s just that for FY ’26, you will need to see higher inflows to be able to grow from there on?
Manoj Sanghvi
We are seeing some visibility, especially from Middle East, Europe, some projects. So we are — and if we see the order backlog also, it has started improving. So going forward, next year, maybe in the last quarter, we will be able to give you the exact numbers. However, 8% to 10% should not be an issue.
Abhishek Ghosh
Got it. And sir, just in terms of capital allocation, how should we look at it over the next 12 months to 15 months, which are the large capex that would incur? And which are the new capacities which are coming in terms of cold roll or any other products, if you can you help us with that?
Manoj Sanghvi
We had two expansions which were ongoing. One was our spiral plant in Orissa, which will be commissioned in the next financial year, first quarter of next financial year. Then we had another project of increasing our capacity in stainless steel cold finishing plant. That will be operational in this quarter. Other than these two projects, we have two projects which has been approved in the current Board meeting, which is setting up a greenfield plant in Middle East for cold finishing activities. And setting up another plant for manufacturing of auto parts in RTL. These are the two projects. The one in Middle East, our, say, budget is close to USD40 million. And so one in India, where we plan to expand capacities in RTL is close to INR240 crores, INR250 crores.
Abhishek Ghosh
Okay. So overall, INR550 crores, INR600 crores of overall capital allocation. Growth capex, the new ones which have been announced?
Manoj Sanghvi
Yes, yes.
Abhishek Ghosh
Got it. And this — what is the timeline for these two to come through in terms of commissioning?
Manoj Sanghvi
So 18 months to 24 months for both. 18 months for, say, start of the production. However, the approvals and everything in place within 24 months.
Abhishek Ghosh
Okay. And that is because you’re seeing a lot of strong opportunity as far as your exports of SS pipes are concerned. I’m saying the greenfield unit which are putting up in Middle East. Is there a lot of good options coming through?
Manoj Sanghvi
Yeah, we’ve been already catering to this market. We have a substantial market share. One is, of course, looking at the market size and what we are supplying from here. Another is these days with the countries being protective and the local content required. That is another reason for us to set up this plant in Middle East.
Abhishek Ghosh
Got it, got it. And sir, just 1 last question in terms of the RTL expansion. Is it the same product profile of Ravi Technoforge? Or is it newer products which you will get into — with this expansion?
Manoj Sanghvi
It will be newer products, which we will add to the basket, plus the existing products can also be made on the same machine. But our aim is to have diversified product portfolio over there.
Abhishek Ghosh
Okay. Okay, sir. Got that. Thank you so much for answering my questions and wish you all best. Thank you.
Manoj Sanghvi
Thank you.
Operator
Thank you. The next question is from the line of Dhiraj Dave from Samvad Financial Services LLP. Please go ahead.
Dhiraj Dave
Yeah, can you hear me?
Manoj Sanghvi
Yes.
Dhiraj Dave
Okay. Question I have is basically, we see a significant increase in inventory of finished goods and work in progress as the result, almost INR120 crores, which was last quarter, INR60 crores and year before, it was kind of INR36 crores. So is it like as in previous question-and-answer management indicated that water demand or water pipes demand project delayed. So is it a buildup of that? And how do management see? Does it mean some kind of adversely hitting margin for the September quarter? If you can elaborate, that would be useful.
Manoj Sanghvi
No. So as indicated, most of it was because of the monsoon which — the water pipes, especially, we had quite a bit of inventory which was there, so that… [Speech Overlap]
Dhiraj Dave
If we are to give a broad breakup, approximate breakup, so INR120 crores increase. So how much would be like water pipe or project-related thing and as compared to it what is the normal level?
Manoj Sanghvi
About 50% of this would be water pipes and balance would be all other products.
Dhiraj Dave
Okay. And — yeah, so — okay, 50% would be water pipe. And when it will be implemented or the sales will be affected, would we see kind of operating leverage giving some kind of better margin in Q3 and Q4?
Manoj Sanghvi
So this quarter, most of it will be liquidated and will come to a normalized level of inventory.
Dhiraj Dave
Okay. And we do expect kind of a stand-alone sales top line of around INR5,000 crore to INR5,500 crores, right?
Manoj Sanghvi
Yeah, it will be INR5,000 crores plus, say, about INR200 crores.
Dhiraj Dave
And any guidance on EBITDA? Would it be at the same level or it would be increasing and affected?
Manoj Sanghvi
Yeah, our yearly guidance will remain same 16% to 18%, in between that.
Dhiraj Dave
Right. Wish you all the best, sir.
Manoj Sanghvi
Thank you.
Operator
Thank you. The next question is from the line of Ashutosh Tiwari from Equirus Securities. Please go ahead.
Ashutosh Tiwari
Yeah, Manoj bhai. So firstly, on this spooling JV, for top line guidance of INR450 crores to INR500 crores, what kind of investment we need to make in this year or next year?
Manoj Sanghvi
Yeah. So this spooling JV, whatever we have targeted, say, for next year, which is INR400 crores to INR500 crores, investments are in place or happening at the moment. Phase 2 of investments for FINO [Phonetic] has been approved. So there, our total investment outlay is close to INR240-odd crores.
Ashutosh Tiwari
INR240 crores. And this will be spent in which year?
Manoj Sanghvi
This will be spent mostly next year. Part of it will be spent, maybe 25%, 30% in this year and balance in next year.
Ashutosh Tiwari
And how much was Phase 1 will it be?
Manoj Sanghvi
Sorry, can you repeat the question?
Ashutosh Tiwari
What is the Phase 1 capex?
Manoj Sanghvi
Phase 1 capex, Katta ji, can we have that number?
Vimal Katta
Phase 1 will be hardly around INR50 crores, INR60 crores at the most.
Ashutosh Tiwari
Okay. So in total, around INR300 crores capex?
Manoj Sanghvi
Yes, yes, yes.
Ashutosh Tiwari
And this will be — because JV is 51-49. So it will be half by us and half by the partner?
Manoj Sanghvi
Yes.
Ashutosh Tiwari
Okay. And you mentioned — so right now, you mentioned that line pipe is a bit weak in oil and gas, but exports are doing better and process pipes generally are better off.
Manoj Sanghvi
Yes.
Ashutosh Tiwari
So that means that, I mean, those are generally better margin products really for us, export and process pipes.
Manoj Sanghvi
Yeah, exports, process pipe, then stainless steel, we have welded also, we have seamless also. So all put together, yes, some margins are better, some are average.
Ashutosh Tiwari
Okay, okay. And so this is — I think second half will be very strong. And this — on the export side, I think with this cold finishing line getting completed in this quarter, do you think that there is further addition to order book for SS seamless side because that area where we have been also expanding our product portfolio?
Manoj Sanghvi
Yes, we will see utilization from this or the next quarter on the added capacity of cold finishing facilities.
Ashutosh Tiwari
So SS order book slightly improved from here, over next three, four quarters?
Manoj Sanghvi
Yes, yes.
Ashutosh Tiwari
Okay. So between the two, I mean, can you guide like, say, within SS and CS, where you think the growth will be higher over, say, next two, three years for us?
Manoj Sanghvi
So stainless steel, definitely, with this cold finishing facilities and another cold finishing facility, which we plan to set up in Middle East, there will be growth from there. However, asset turnover ratio being less in stainless steel, maybe in terms of number — however, the margins will be quite different. At the same time, the carbon steel revenue growth will be quite strong after the Orissa comes in, plus our heavy thickness plant once it’s — the utilization goes up.
Ashutosh Tiwari
Okay. And how has been the progress in the European market? I mean, there’s one market that we’re focusing a lot.
Manoj Sanghvi
Europe is overall globally, if you see the prices are soft, but demand uptick is still there.
Ashutosh Tiwari
Okay. So we are seeing improvement in our market share slowly in that market.
Manoj Sanghvi
Yes, yes.
Ashutosh Tiwari
Okay. That would be all from my side.
Manoj Sanghvi
Thank you.
Operator
Thank you. [Operator Instructions] We have the next question from the line of Dhananjai Bagrodia from ASK. Please go ahead.
Dhananjai Bagrodia
Hi, sir. Thank you for giving the opportunity…
Operator
Sorry to interrupt, but your line is not very clear.
Dhananjai Bagrodia
Hello.
Operator
Yes. May I request you to please change the mode, sir, the handset.
Dhananjai Bagrodia
Yeah, I’m on handset mode now.
Operator
Sure. Thank you.
Dhananjai Bagrodia
I just wanted to ask you, sir, regarding — could you give us any color like volumes, this revenue degrowth, how much would be from volumes and how much would be from steel price decrease?
Manoj Sanghvi
Can you please repeat? I missed in between.
Dhananjai Bagrodia
So how much — as far as revenue, how much would have been volumes decrease, and how much would have been the realization decrease?
Manoj Sanghvi
For the first two quarters?
Dhananjai Bagrodia
No, for the second quarter, for stand-alone. Any color on how much would have been the realization decrease and how much would have been volume decrease?
Manoj Sanghvi
Realization decrease would be anywhere close to 15% approximately.
Dhananjai Bagrodia
Okay. And sir, for us, which segment would have done better in terms of carbon steel or stainless steel?
Manoj Sanghvi
No. So basically, if we see the second quarter, other than line pipes, all other are what we had budgeted for. So line pipes is a little slow as indicated earlier.
Dhananjai Bagrodia
Okay, fine. And sir, now one of our competitors has been speaking quite a lot of strong growth in stainless steel. Are we also seeing the same traction globally? And how they’ve been able to ramp up volumes, I guess, guide for strong volumes going ahead also, would we see similar numbers in our stainless steel?
Manoj Sanghvi
I don’t know which competitor but we still consider that a growth of 15% — 10% to 15% on stainless steel is what we can continue at. Plus, if we see a lot of competitors, especially on stainless steel seamless are increasing and that too with the piercing technology. We have recently two or three other manufacturers who have come in and two or three other companies who have announced that they are putting up a stainless steel piercing plant.
Dhananjai Bagrodia
Okay. And sir, there was a company NCLT, which was bought by Jindal Stainless, would we have looked at that because it was a good capacity at a very reasonable price compared to other people’s gross block [Phonetic] are for the same cost — for the same capacity. Did we look at that?
Manoj Sanghvi
I am not aware of what company. Was it stainless steel or carbon steel?
Dhananjai Bagrodia
No, no, Stainless steel, Rabirun.
Manoj Sanghvi
Which one?
Dhananjai Bagrodia
Rabirun.
Manoj Sanghvi
I have not heard of this company. So I don’t know.
Dhananjai Bagrodia
Jindal Stainless announced this acquisition.
Manoj Sanghvi
Jindal Stainless, they would have taken over something which has to do with maybe ornamental and infrastructure pipes. So we are not into that segment at the moment.
Dhananjai Bagrodia
Okay, fine, sure. And — okay, thank you.
Manoj Sanghvi
Yeah. Thanks.
Operator
Thank you. The next question is from the line of Sahil Sanghvi from Monarch Networth Capital. Please go ahead.
Sahil Sanghvi
Sir, can you just give me some more details on this, the heavy thickness pipes, I mean, where exactly are we aiming to — I mean, which are these pockets where we’ll be targeting these pipes? And I mean, what dimensions are there? And what kind of capex have we incurred for this?
Manoj Sanghvi
Our capex total was close to INR50 crores, INR60-odd crores. And we would mostly be catering to the offshore industry. It can be offshore oil and gas platform, it can be offshore wind farm.
Sahil Sanghvi
Okay, okay. And the asset turnover will be roughly 2x?
Manoj Sanghvi
Yeah, 2x, 2.5x.
Sahil Sanghvi
Okay. Also, I wanted to understand, I think in the first half, we have spent about INR160 crores in capex, the number I can see from the cash flow. So what is the targeted capex spend for this year and next year, if you can give some guidance.
Manoj Sanghvi
So stand-alone, I think so we have Orissa, which is going on. So only that — and of course, some equipment on stainless steel cold finishing facility. Other than that, most of it for Middle East would come maybe in the next financial year.
Sahil Sanghvi
And the Phase 2 of spooling also will be there, right?
Manoj Sanghvi
Yes.
Sahil Sanghvi
So I mean, this year on the consol side, we should be somewhere around INR200 crores or less than that?
Manoj Sanghvi
For the balance, yes, close to — anywhere between INR150 crores to INR200 crores.
Sahil Sanghvi
Next year, would you be able to give some number?
Manoj Sanghvi
Next year, all put together, roughly INR300 crores, INR350 crores.
Sahil Sanghvi
Okay. Got it. That’s all from my side. Thank you.
Operator
Thank you. The next question is from the line of Dhiraj Dave from Samvad Financial Services LLP. Please go ahead.
Dhiraj Dave
Yeah, can you hear me?
Manoj Sanghvi
Yes.
Dhiraj Dave
Thanks a lot for taking the question. Sir, can you give some breakup about export…
Operator
Sir, sorry to interrupt, but your line sounds muffled.
Dhiraj Dave
Yeah. Can you hear me now?
Manoj Sanghvi
Yeah.
Dhiraj Dave
So what is the breakup of export and domestic sales during this quarter? And how do you see in next year or FY ’26?
Manoj Sanghvi
I’d say almost 50-50. What we have orders on hand is almost 50-50.
Dhiraj Dave
Okay. So we…
Vimal Katta
See, almost one-third of turnover came from exports in this quarter.
Manoj Sanghvi
Yeah. On revenue side, it is 30-70 or 35-65. However, orders on hand is almost 50-50.
Operator
Dhiraj, you are not audible if you are speaking.
Dhiraj Dave
Yeah, yeah. I’m there. So basically — yes, so there is a 50-50 export in domestic, sir. But what we understand is that the demand generally — demand environment as well as volume from Middle East and other markets were better vis-a-vis Indian market, particularly kind of this. So the ratio would remain same or it would change end of it?
Manoj Sanghvi
And historically, normally, our exports are anywhere between 30% to 40%. But since domestic demand is muted, exports, we see a good demand, so orders on hand also, you can see that visibility that it is 50-50 now.
Dhiraj Dave
Okay. So we would be getting into that area. That’s fine.
Manoj Sanghvi
Yeah.
Dhiraj Dave
And generally, export market is more remunerative.
Manoj Sanghvi
The export market is more?
Dhiraj Dave
Remunerative. Profitability is better or is equal?
Manoj Sanghvi
It depends from product to product. But yes, for some certain products, you can say that.
Dhiraj Dave
Thanks a lot. Wish you all the best.
Manoj Sanghvi
Thank you.
Operator
Thank you. The next question is from the line of Muskan from B&K Securities. Please go ahead.
Muskan Rastogi
Hi, sir. Thanks again. Sir, what is the potential revenue from the joint venture with both the phases of capex that we have for this INR300 crores?
Manoj Sanghvi
So with the capex, say, for RTL, our revenue potential can go up to INR700 crores, INR750-odd crores. And for FINO with the additional capex of Phase 2, same again, we can go between INR600 crores to INR700 crores.
Muskan Rastogi
Okay, sir. And other question is, what is the current hot extrusion and cold finishing capacity in stainless steel? And how much of cold finishing we are expanding in domestic market?
Manoj Sanghvi
So our total capacity for seamless products is 30,000 tonnes, which is hot finishing capacity, of which cold finish is roughly 10,000 tonnes. And we are adding another 1,200 tonnes.
Muskan Rastogi
Okay, okay. And the capacity number in spooling with two phases of capex in tonnage numbers?
Manoj Sanghvi
For?
Muskan Rastogi
The capacity number is spooling, the two phases that we’re doing, the INR300 crores capex, what would be the capacity number in tonnage terms?
Manoj Sanghvi
Capacity number for spooling will be anywhere close to 3,500 tonnes.
Muskan Rastogi
All right. Okay, sir. Thank you.
Manoj Sanghvi
Thank you.
Operator
Thank you. [Operator Instructions] We have the next question from the line of Aasim from DAM Capital. Please go ahead.
Aasim Bharde
Hi, gentlemen, good evening. Sir, one clarification I wanted. So on an earlier question of you said realization is down 15%. Is that for the industry as a whole or for Ratnamani’s product mix in particular?
Manoj Sanghvi
No, it must be — if you have a similar company, it must be for the industry as a whole because steel prices — stainless steel prices or for that matter, other commodity has gone down by that much percentage.
Aasim Bharde
That is the raw material price basically, right? For us, given our product mix and then line pipe, you said was weak, how much would realization, blended realization been down Q-o-Q or Y-o-Y?
Manoj Sanghvi
On an average, 10% to 15%.
Vimal Katta
See, Manoj ji, I’m trying to step in. See, in Q2, if you look at stainless steel and carbon steel, both blended, I’m not bifurcating between process pipes and line pipes. So it will be close to 16.6%, both, in stainless steel and carbon steel for Q2 compared to the corresponding quarter of last financial year.
Aasim Bharde
How does that compare vis-a-vis Q1?
Vimal Katta
See, if we look at Q1, that movement will be much lower. It might be close to 8% to 10% sort of thing in case of stainless steel. And in carbon steel, it was better, better than Q1.
Aasim Bharde
So carbon steel, there was a growth Q-o-Q?
Vimal Katta
There was a — because see, quarter-on-quarter, so you cannot compare because these prices — process prices were higher. So realization will also be higher. Yeah, yeah. Okay.
Aasim Bharde
So theoretically, line pipes being weak in Q2 versus Q1 helped you in realization Q-o-Q?
Vimal Katta
Yeah, yeah. Okay. Because process side is a better margin business, and raw material will also be different for process pipe.
Aasim Bharde
Understood. And just a theoretical question. When we talk about process pipes and carbon steel, besides the usual coated pipes or painted price, what other product categories are there in process pipes for carbon steel?
Manoj Sanghvi
It is the same kind of pipes. Maybe the coating is different, the grade is different, the specification is different. But pipes as such, will remain same. The import material, the output sizes, various sizes, that’s the difference.
Aasim Bharde
Okay. It’s the coating that may differ, not necessarily thickness?
Manoj Sanghvi
No. It can be coated. It can be bare, thicknesses size, line pipe is one particular size that goes on for kilometers.
Aasim Bharde
You’re right.
Manoj Sanghvi
So utilization of the plant is much better. However, when it is processed pipe, we have maybe 100 sizes, 150 sizes, so number of sizes are much more. Diameters will vary. Yeah.
Aasim Bharde
And approximately — last question, approximately in your total volume of carbon steel, how much percentage would process pipes be?
Manoj Sanghvi
Of the carbon steel?
Aasim Bharde
Yes.
Manoj Sanghvi
Yeah. I think roughly 20-odd percent, 20%, 25%.
Aasim Bharde
Okay. Okay, great. Those were my questions. Thank you.
Manoj Sanghvi
Yeah.
Operator
Thank you. [Operator Instructions] We have the next question from the line of Sriram R [Phonetic], an Individual Investor. Please go ahead.
Sriram R
Thank you for the opportunity. Sir, can you give a sectoral breakdown of your order book, like how much would be from oil and gas, renewable, steel, cement, etc?
Manoj Sanghvi
At the moment I don’t have the breakup, but can be sent if required.
Sriram R
Perfect. Thank you.
Operator
Thank you. [Operator Instructions] Ladies and gentlemen, we have no further questions. I would now like to hand the conference over to Mr. Sahil Sanghvi for closing comments. Over to you, sir.
Sahil Sanghvi
Yeah. We just want to thank the management for very elaborately answering all the questions, and also thank all the participants for joining the call. Manoj sir, would you like to give any closing comments, please?
Manoj Sanghvi
Yeah, I would just like to thank everybody for their time and listening to us patiently. And we wish you all a great time ahead. Thank you.
Vimal Katta
Thank you.
Operator
[Operator Closing Remarks]