Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Ratnamani Metals & Tubes Limited (NSE: RATNAMANI) Q4 2026 Earnings Call dated May. 18, 2026
Corporate Participants:
Manoj Sanghvi — Chief Executive Officer
Analysts:
Sahil Sanghvi — Analyst
Tanmay Agarwal — Analyst
Shailesh Raja — Analyst
Netra Deshpande — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Ratnamani Metals and Tubes Limited Q4FY26 earnings call hosted by MonarchNet Net Worth 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 an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr. Sahil Sanghvi from Monarch Net Worth Capital. Thank you. And over to you, sir.
Sahil Sanghvi — Analyst
Thank you, Aldrich. Good evening to everyone. On behalf of Monarch Network Capital, we welcome you all to the 4QFi 26 earnings conference call of Ratnamini Metals and Tubes. We are delighted to host the management of Ratnamini and from their side we have Mr. Manoj Sanghvi, the Chief Executive Officer and Mr. Vimal Katta, the Chief Financial Officer. So without taking much time, I’ll hand over the call to Mr. Manoj Sanghi for opening remarks. Thank you. And over to you, sir.
Manoj Sanghvi — Chief Executive Officer
Yeah. Thank you, Sahil. Good evening everyone. I warmly welcome you all and thank you for joining us for our performance update for the quarter ended on 31st March 2026. The company operated in a challenging business environment during the quarter with continued muted demand conditions and adverse geopolitical developments in the Middle east impacting order booking, project execution and overall market sentiments. Despite these headwinds, the company demonstrated strong operational resilience and successfully navigated the evolving situation on standalone basis.
Our sales for Q4 stood at 893 crores as against the base of 1575 crores in Q4 of the previous year which was also the highest ever quarterly sales in the company’s history. For the full year as well, standalone performance remained impacted by subdued demand conditions impacting order inflows and resultant lower capacity utilization. The Stainless Steel division performed broadly in line with the previous year while the decline in overall sales was primarily driven by lower volumes in Carbon Steel division.
Despite lower volumes, our continued focus on operational efficiency, cost optimization and improved product mix with higher value added products ensured that there was no negative impact on the EBITDA margins in percentage terms both for the quarter and for the year. We also continue to focus on expanding our market through new geographical areas and product application. During the year, company further strengthens its portfolio and manufacturing capabilities with 18 meter spiral welded pipes and expansion of API 5ct product range.
I am also happy to share that company continues to remain debt free on a standalone basis. The order book has continued to be around 2000 crores during the previous year and as on 1st May 2026 was around 2160 crores while export contributing around 700 crores, providing good revenue visibility for the coming periods. Now moving on to our subsidiaries, Ravi Technoforge continued its strong presence and achieved a revenue of 105 crores during the quarter representing a growth of 28% over corresponding quarter of last year.
For the full year, revenue grew by 33% to 377 crores. Growth was driven by both exports and domestic markets while EBITDA margins improved from 10% to 12% due to operational efficiencies. Our expansion projects at Wavy Technophorge are processing well and will further enhance capacity, automation and precision capabilities. These upgrades will also help us step into new customer segments. Our subsidiary Ratnamani Sino Spooling Solutions also continued its strong momentum. The company achieved revenue of 72 crores during the quarter, registering around 60% over the corresponding growth 60% over the corresponding quarter of last year.
FY26 was the first full year of operations for RFSS during which it achieved a revenue of 390 crores. RFSS continues to witness healthy order inflows and improving execution efficiencies. The new manufacturing facility being set up by the company is progressing well and is expected to start contributing revenues from the second half of the current financial year. On consolidated basis, our Q4 sales stood at 1085 crores as against 1715 crores in the corresponding quarter of the previous year. For the full year, consolidated sales stood at 4,494 crores compared to 5,186 crores in FY25.
At the consolidated level, the strong performance of Ravi Technoforge and RFSS significantly supported overall group profitability with the bearing rings and pipes pulling business emerging as key growth drivers. Despite lower revenues, the group maintained profitability margin and absolute EBITDA and net profit broadly in line with the previous year based on the current year’s performance, the future outlook and the present challenging times. Conversation of Resources Till things settle down the broad the board has decided to recommend a lower dividend of rupees 10 per share which will still be 500% on the face value.
Although order booking remained moderate during the quarter due to delayed project cycles arising from current global situation, inquiry levels have started showing signs of improvement across key markets with expected improved Demand visibility going forward, strong subsidiary momentum, contribution from ongoing expansion project and a positive long term industry outlook. We remain confident of strengthening our market position and delivering sustainable growth in the years ahead. Thank you once again for your continued trust and confidence in the company.
I’m happy to answer questions now. Thanks.
Questions and Answers:
Operator
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star in two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from the line of Dhananjay Bagrodiya with alchemy. Please go ahead.
Tanmay Agarwal
Hi sir, thank you for this opportunity. Just wanted to ask you with this Middle East.
Operator
Please go ahead with your question and kindly unmute yourself in case if you’re on mute.
Tanmay Agarwal
Can you hear me? Hello? Hello? Hello.
Operator
Hello. Since there is no response from the participant, we’ll move to the next participant. The next question comes from the line of Shailesh Raja with 361 capital market. Please go ahead.
Sahil Sanghvi
Yeah, hello. Thanks for the opportunity. So can you hear? Hello.
Operator
Yes Alice, Please
Shailesh Raja
Go ahead.
Operator
Yeah, so there is excess capacity available in domestic stainless steel pipe industry while demand also remains weak which is getting reflected in our, you know, the order backlog numbers. So historically this segment has not witnessed meaningful pricing pressure. But the dynamics now, you know it is completely different. Almost every carbon steel company has entered into stainless steel space. So do you believe that there is a structural change underway in the profitability per metrics in stainless steel?
And also this is also very capital intensive business. Historically if you see it is a very good margins also. But if margins begin to decline structurally, where do you see the best deployment opportunity for Ratnamani incremental? For example, if we generate 100 rupees incremental cash flow so how much will deploy it in Elsa Hetzer bearing and pipe pooling business? Because if you see in the current capex cycle we are spending only 50 crore pertaining to stainless steel out of 770 crores the capacity that we are creating in India.
So could you please talk about the stainless steel division?
Manoj Sanghvi
So just to correct give you the correct perspective, the stainless steel volumes in the last fiscal year actually went up, not down, but the prices were down. So we were more or less flattish on the revenue.
Netra Deshpande
Okay?
Manoj Sanghvi
Yeah. And yes, a lot of carbon steel players plus other players. The competition intensity in stainless steel or carbon steel Is increasing. However, most of the capacity is for the pierced seamless products. So which market as it is Ratnamani is not catering to. So our still our focus remains on high value added extruded products. Where only one new player is supposed to come. I don’t know by when, but. But it. It will take some time before the new capacities in the extruded segment come comes.
Operator
Okay.
Manoj Sanghvi
Yeah.
Operator
So in the near future is there any Capex plan in stainless steel division or our focus will be
Manoj Sanghvi
Debottlenecking. Capex is going on. We are investing. We are already doing instrumentation tubes in straight length. Now we are executing a few orders in the coil form and we can. We will continue to increase the capacity over there. We are planning for a new tube mill on the welded side. Since it is all the Capex put together is not significant. It is not or it is. It is part of our routine Capex. So it is not highlighted separately.
Operator
Sir, on the line pipe side, that opportunity appears very promising. In both domestic as well as exports market. There are multiple pipeline projects being discussed in Saudi including the sea pipeline opportunity from Middle east to India. So imagine there could be a sizable opportunity in stainless steel in the Middle east if reconstruction activity gather space. So Adnath is also talking about doubling the exports. So how do you see the business opportunity evolving for us both in stainless steel, carbon steel division for us over the next 12 years?
Manoj Sanghvi
No, with the current situation internationally, definitely once this is over, we don’t know today by when it will be over or by when things will be normal. But yes, definitely not only in Middle east, but domestic as well as other parts of the world. We will see a push in carbon steel pipes as well as stainless steel tubes and pipes. Because refineries, petrochemical plants, whatever is damaged, plus the new expansion once the oil is transported from say the point of originating to
Operator
Wherever
Manoj Sanghvi
It goes. So the refining, Capex, petrochemical plants also we will see Capex and we feel that yes, in two months, three months from now, we’ll see if things normalize. We’ll see the demand. Of course many projects are announced, but detailed working of that will be done. So in another three months, six months, we will see those demand, those kind of demand for both stainless steel and carbon steel pipes coming in.
Tanmay Agarwal
Okay. Thank you sir. All the best.
Manoj Sanghvi
Thank you.
Operator
The next question comes from the line of Divyansh Gupta with latent pns. Please go ahead.
Shailesh Raja
Hi sir. I have actually a question for each of the business verticals starting with the spool price business. So Is the understanding correct that the spool pipe assembly that we give is more of a one time in a nuclear plant? And if yes, then the question is that how are we seeing the order book build out? Where is the order book? Where are the orders coming from? And what is giving us confidence to expand our capacity? Given that even if someone says I want to do a nuclear plant today, the requirement of the pipe might come two or three years down the line when the actual fitment of nut on bolt is expected to happen.
Manoj Sanghvi
Yes. Thank you. So your first question was whether it is a one time requirement. No, it is not a one time requirement. Now and with with the current situation globally and amount of data centers being announced not only in India but elsewhere, the demand for power will go up. Only thermal or only renewable will not be able to suffice the future power requirement. Saying that we feel that not only in India and with the vision of our honorable Prime Minister by 2047 where he wants to have say 100 gigawatts of nuclear plant not only in India but internationally also a lot of nuclear power projects have been.
So US being at the moment the only nuclear approved facility from India for Nuclear Power Corporation of India limited plus internationally also now we’ve been approved to supply for projects in Egypt, Turkey, Hungary. So. So we see that there is good potential for RFSS to grow from here.
Shailesh Raja
Got it. And when you say it is not a one time product, so then let’s say how, at what frequency is the product replaced? The life of the spool pipe is.
Manoj Sanghvi
So any nuclear power plant, greenfield, new project, say for 1 gigawatt, 4 to 5,000 tons of pipes pools are required. Now currently considering what the number of plants India is planning plus the other geographies, what they are planning, this plant will be booked itself for the new nuclear power plants.
Shailesh Raja
Got it? Understood. Understood. On RTL the question was that what is the percentage of either exports or deemed exports and does the tariff equalization now in the US brings any tailwind or any contracts which were delayed because of tariffs? Starting back, coming back on the discussion table and how should we see the business ramp up happening?
Manoj Sanghvi
So we have the data for physical exports which is between 35 to 40%. For Ravi Technoforge deemed export, we don’t have the exact data but 50% of what we supply to the domestic manufacturers, SKF, Scheffler or the other bearing bearing manufacturers, I think 40 to 50% of that is exported by them.
Shailesh Raja
Got it. So about 60%, 60 to 65 at least is getting exported
Manoj Sanghvi
And they
Shailesh Raja
Get exported to. So yeah, the US tariff and which geographies are they getting exported to?
Manoj Sanghvi
Europe, US also rest of the world.
Shailesh Raja
And is there a broad mix that you can give?
Manoj Sanghvi
No, see we would not have that data in detail but our customers would definitely. Yeah.
Shailesh Raja
Understood. Coming to the Middle east plan that we were planning to set up. I see the date is still March of 2027. So if you can give updates on two aspects. Does the current war leads to and has led to any delays or let’s say reevaluation of timelines and where are we currently after the initial certificate that we got to or the approval that we got that. Okay. We can start doing the greenfield cap. Start doing the CAPEX activities in Middle East.
Manoj Sanghvi
Yes. So considering that things will normalize say in another month or so we still are confident that we’ll be able to finish the project especially the trials within March 2027. The the current status if I say the the design engineering is complete, it has been submitted to authorities for approval. Once it is approved the contractor will be finalized for construction and simultaneously will be ordering all the machinery. So yeah,
Shailesh Raja
Sorry, continue.
Manoj Sanghvi
Yes. So we are. We are also waiting at the moment for things to normalize so we can award the contract for construction. So as of now we still remain confident that the project can be finished within March 2027. If there is any spillage it can be of three months.
Shailesh Raja
Got. And coming to the standalone entity which is the fourth business vertical. The order today if you can split it between CES and ss. Second question is given that let’s say given the government financial are under strain I’m guessing the Jaljeevan Nigam is under stress and similarly the oil and gas is also understrained. So what is the traction we are getting in cgd? Because at least the article says that CGD seeing a lot of traction and you mentioned that inquiries are coming. So where are these inquiries coming from?
And any particular segment where you. We are seeing a lot of inquiries coming in
Operator
On order book Manojeep if you correct it as on first May it was 2162 crores out of which 531 crores was stainless steel and 1631 crores was carbon steel and out of this 2162 crores 697 was the export component. Okay,
Shailesh Raja
Got it. Understood. And on the inquiry part where are the inquiries coming from and are we seeing any tailwind because of cgd?
Manoj Sanghvi
So domestic there are a few inquiries from gas transmission companies then there Are a few inquiries on stainless steel from the refinery segment and the petrochemical segment. Some portion in the renewable energy segment. Also if we see the thermal power segment where our stainless steel products go for high pressure heat exchange heater tubes and low pressure heater tubes plus the condenser tube. So we are seeing strong demand from there Also oil and gas still? Yes, Middle east we are hearing there are a few projects.
However they are going slow because still the shipping system or the shipping lines are not willing to. Or even if they are willing to, the cost is too high. So once that normalizes the real picture of demand from Middle east will know.
Shailesh Raja
Understood? Understood. Thanks for answers. I’ll join back the queue so that others can ask and I. Yeah, thank you.
Operator
Thank you. The next question comes from the line of Tanmay Agarwal with Nivashe. Please go ahead.
Tanmay Agarwal
Hello. Am I audible?
Operator
Yes. Yes
Manoj Sanghvi
You are. Hello.
Tanmay Agarwal
Okay, my first question is with 80 gigawatt thermal and renewal power capacity expected to be added over the next four to five years, could you help us to size the stainless steel opportunity both in volume and value terms? Specifically what is approximate tonnage of stainless steel tubes required per gigawatt of addition capacity and what share of this opportunity is Ratanmani position to address?
Manoj Sanghvi
Can you repeat the first part because your voice was not very clear?
Tanmay Agarwal
Yes sir. With 80 gigawatt of thermal and renewable power capacity expected to be added over the next four to five years, could you help us to size the stainless steel tube opportunity both in volume and value terms?
Manoj Sanghvi
I don’t have the exact number at the moment but for power plant as I mentioned just before this question that we are major suppliers for the heat exchangers, high pressure, low pressure as well as the condenser tubes. So all put together the volumes for the power segment is substantial which before say 2025 or 2024, the power demand was quite less. Our supplies to power demand, the power sector had gone down. However, for the next five years we feel and we see that the demand is going to remain quite strong in this segment.
Tanmay Agarwal
Okay, sir. Sir, my another question is regarding Middle Eastern ong demand. Sir. What? Given the significant infrastructure destruction that had happened in the Middle east due to the ongoing conflicts, are you seeing any incremental inquiry or order inflow in the oil and gas segment either from reconstruction activity or from the accelerated pipeline build out?
Manoj Sanghvi
Not yet. We have been hearing various projects. However the actual demand or the actual inquiry is not yet seen. Two major factors. One, the shipping. Because whatever orders we have, we are unable to ship still because only few ports we can ship to and they are able to handle limited cargo plus the other ports where we want to send the material. However, the vessel is either charging say obnoxious amount which the customer is not willing to accept. So until. Unless things settle. Of course on paper we see a lot of demand but the actual demand on ground we will only know once things settle down.
Tanmay Agarwal
Okay, sure, sure. Thank you. From my side.
Manoj Sanghvi
Thank you.
Operator
The next question comes from the line of Netra Deshpande with Myre asset Sher Khan. Please go ahead.
Netra Deshpande
Yeah. Am I audible?
Manoj Sanghvi
Yes, you are.
Netra Deshpande
Yeah. Thank you so much for the opportunity to start with the about two questions which I have. Can you give me a breakup volume for the CS and SS spike for the forward guidance and where realization port done and what would be the any other like new product mix which is you are going to any other plans for the capacity expansions and the new products mix which is going to be there for the further year. So this is my first question.
Manoj Sanghvi
Exact volume breakup
Netra Deshpande
For the revenue guidance or you can say for the volume and sales for CS and
Manoj Sanghvi
Yeah, so see carbon steel the volumes have gone down. Considering that we were shifting some capacity the whole year out of the whole year, nine, ten months there was a shift of capacity from one location to another location. So during the year if you see we started production at Orissa so that capacity is back up and running. Another modification what we did in Kutch where we used to manufacture pipes in the length of 12 meters. So now that plant is capable to manufacture pipes up to 18 meters.
So we are back to our capacities what it was before last financial year. And for stainless steel there has been volume growth as indicated earlier. However, in the price terms we are more or less say 5 to 10% higher than the previous year.
Netra Deshpande
Okay. Okay. So realization would be for the FY27 would be. You can. We can expect 5% rise.
Manoj Sanghvi
Our budget for the year say is close to anywhere on standalone basis anywhere between 4800 to 5000 crores.
Netra Deshpande
Okay. Okay.
Manoj Sanghvi
Yeah. Yes
Netra Deshpande
And yeah. Thank you sir. And with my second question about as we have seen in the balance sheet we have maintained with the low debt and again the net cash. What would be the position for the as like I just would like to get the breakup of net cash position and what is the target for the further as given with the Capex cycle? What would be the further forward guidance for the. You can say the further debt level position for the next. We are.
Manoj Sanghvi
Yeah we are working on two, three projects. So Once those materialize, we will be able to give you the guidance on. On. On the cash flows or the cash that the company has at the moment. What is the amount available? Kataji, if you can please reply to that.
Operator
As on date also we will be having close to 800 crores available as free cash with the company. And whatever little debt you is getting reflected in the balance sheet. That is basically in case of any requirement. So we have at the OB facilities. So minor utilizations might be there. Otherwise companies hundred percent that’s free as far as regular bank limits are concerned.
Netra Deshpande
Okay. Okay. Thank you so much. Thanks.
Manoj Sanghvi
Thank you.
Operator
The next question comes from the line of Saurabh Patwa with Quest Investment Management. Please go ahead.
Shailesh Raja
Hello.
Operator
Please go ahead.
Shailesh Raja
Yeah, thanks a lot sir for giving this opportunity. Sir. So just two, three questions. One is so given this year we had some spillovers, some delay in
Operator
The dispatch of the products which would already ready because of the export orders because of the Middle east issues. And the order book which you have, if this spills over and over time during the year, if these normalizes, so will this 4800 to 5000 crores of target which you have is including this or is this for the current year’s target and this can have a higher number.
Manoj Sanghvi
No, it is the 4800 crores. What we say is considering that the. That things will normalize soon
Operator
And last year dispatches also will happen.
Manoj Sanghvi
Last year we had say we were sitting on about 100250 crores worth of material which was about to be shipped
Operator
Which
Manoj Sanghvi
Could not be shipped because of this conflict.
Operator
Correct. And secondly this year we had a large last two quarters. We are having close to 40% kind of decline in our volumes despite a growth in stainless steel. So assuming this thing normalizes some, we get some growth back. And in this carbon steel how does this impact margins? Because I believe stainless steel has much higher margins. So will your margins get impacted negatively?
Manoj Sanghvi
No. The moment things normalizes we will see a lot of projects. Right. So. So we will get our share of margin of carbon steel product.
Operator
Okay. Okay.
Manoj Sanghvi
Yeah. So the current margins
Operator
Of carbon steel are depressed. Is this or like last year’s carbon steel margins are slightly depressed compared to historical past.
Manoj Sanghvi
Yes. Not. I would say not depressed depressed but the mix changed. Right. Because a lot of it was water project, not oil and gas.
Operator
Okay.
Manoj Sanghvi
Now going forward the demand for oil and gas and the Jalgivan mission both will be there.
Operator
So
Manoj Sanghvi
If, if we manage the product mix well, definitely we’ll be able to sustain the margins.
Operator
So we should be able to deliver 17, 16 to 18 margins. This is fair understanding.
Sahil Sanghvi
Basically. Basically, higher utilization of capacities will result into better absorption of fixed costs. So that negative impact of higher contribution coming from line pipes carbon is the line pipes will not be that significant. One percent here and there might be there in the long run. This 16 to 18% seems to be sustainable range.
Operator
Understood, sir, understood. And so just lastly, was there any Forex impact positive or negative this year compared to last year in this quarter? Forex
Sahil Sanghvi
Basically because exports have been significant, we have been positive on the receivable side. So positive impact has been there. That that figure for the entire year will be closer to 45 Sierra.
Operator
Okay?
Sahil Sanghvi
Yeah.
Shailesh Raja
Okay sir. Thanks a lot sir. And all the best.
Sahil Sanghvi
Thank you.
Operator
The next question comes from the line of Dhruv Saraf with Bow Head India Fund. Please go ahead.
Shailesh Raja
Good afternoon sir. Just wanted to understand you’ve alluded to the fact that power demand from demand for stainless
Operator
Steel tubes from the power sector remains to be very buoyant. But this is also a space where pure team technology is gaining wide acceptance. So do you see a situation where your margins in power will be lower than your margin that you want in the past because of, you know, acceptance of pure thing? Do you see that as a threat to you
Manoj Sanghvi
See? Yes, I think it is. Echoing, echoing hello.
Operator
Yes sir, please go ahead.
Manoj Sanghvi
Yeah. Yes, See substantial capacities have been added in stainless steel seamless segment products are being accepted. If you say that, I would say yes, they are being accepted. But at the same time we see failures also happening. Recent fire or heat exchanger failure at one of the refineries in Rajasthan was a major failure and the tubes are to be replaced or is to be replaced in a month. So piercing technology, yes, it is accepted. Short term maybe, yes. Margins, there will be a pressure. However, we continue to enter new segments like Defense which is increasing for us.
Aerospace, which is increasing for us. So we will move up the ladder. We’ll try to. That market in India is growing. So it’s an opportunity for us. Yes, power. We might have a little compromise on the margins, but I think that phenomena maybe temporary.
Operator
There might be eventually reluctance to accept piercing going forward, let’s say two, three years down the line in heat exchange power and refineries. Could there be like a rollback in that time or from piercing again back to
Manoj Sanghvi
Many end users have limited the tubes to be manufactured by extruded mother volumes. And. We see, and we see addition or the increase in number of such end users. That’s all I can say.
Operator
Okay. So there’s been an increase in the number of end users who you know, restricted their demand to only exclusion. That’s what you say? If I’m getting it.
Manoj Sanghvi
Yes.
Operator
Okay. That will be very helpful. So just one more question on the export business. Especially on stainless steel. Sir. So Europe is coming with. Europe is coming with this carbon border adjustment mechanism later this year. And there is also some chatter about reducing the quota of Indian stainless steel exports to the continent. So do you think it’s going to be a big game changer either positively or negatively for your export business especially in stainless steel?
Manoj Sanghvi
Short term I don’t see any major impact on us. See, finally there has to be local manufacturing or this is to support the local manufacturing. Now the local manufacturing will also adjust the price accordingly. And if the demand is more than the supply, the price adjustment will happen itself. So short term, not. Not a major impact. But yes, long term, if it continues, we will see local manufacturing manufacturers expanding their capacities. And yes, that is where the impact can come.
Operator
Understood? Understood. But that would be a five, six, seven year phenomenon. But it’s not more of a two, three years.
Manoj Sanghvi
Yes,
Shailesh Raja
Sure. Understood. Thank you so much, sir. I’ll get back in the queue.
Manoj Sanghvi
Thank you. Thank you.
Operator
The next question comes from the line of Deepak Sodhi with Sundaram Mutual fund. Please go ahead. Yeah. Thank you for the opportunity. Am I audible? Yes. Yes
Netra Deshpande
You are.
Operator
Yeah. Hi sir. My first question is on pipes pools business. So if I look at this quarter, you know we are seeing a decline of 63% QoQ. Because the order book execution is bit lumpy. But despite this 63% sales decline on a QOQ basis your margins has actually gone up by 3 to 4%. So what explains this? Is it some inventory gain that we see in this pipes pooling business where our lower cost inventory went into production. Hence we see an improvement in margin despite an 50 60% sales decline.
Manoj Sanghvi
See. Hello.
Operator
See, basically in that money we don’t have any PI business. First thing. Second thing, all our orders are on fixed price basis. And inventory adjustment does not happen because of that. Because inventory is masked against those orders. Only excess inventory is revalued at cost of market time. It’s very lower. So that his
Manoj Sanghvi
Question is about pipe full business. So.
Operator
Okay, okay, okay. But in PIP business the volumes didn’t go down.
Manoj Sanghvi
Yeah. So the. The pipe full business volume did not go down. So I, I. Yes. When did this.
Operator
Okay, so you are saying volume did not go down but the realization went up exponentially higher.
Manoj Sanghvi
Yes. See operational efficiency coming in as the volume goes up. See we are today we are prepared to manufacture a certain capacity. Now as the utilization increases, the margins improvement you are seeing and plus the nature of the order.
Operator
Okay. And so what is our let’s say growth guidance for this business in FY27? Also margin guidance for school business. For.
Manoj Sanghvi
For school business we can see a growth of 20%. 20, 25% for this particular year.
Operator
And will you be able to maintain that 30 to 35% margin band?
Manoj Sanghvi
The moment it seems like. However, going forward I think the margins should be in the range of 20 to 25%.
Operator
Okay. And so one question I had on your standalone pipe business. So if I look at your order book in FY25 closing, you know we had good amount of export order as well as stainless steel order. But if I look at the current closing order book which we ended in March, you know our stainless steel order book is down and our export order book is also down. So do you think that 16% to 17% margin can be maintained in FY27? I am aware that you did highlight that the mix within the carbon steel has changed from let’s say water to more oil and gas.
So still. But do you think that 16 to 17% margin is. Can be maintained in 27?
Manoj Sanghvi
Yes. Margins say 16% plus minus 1%. Definitely it can be maintained. However, if the conflict that we see today extends say beyond beyond three, four, five months then it will be a. It will be totally different scenario.
Operator
Okay sir, when you say. When you say that 4800 crore it is. Is it something which you are internally factoring or is that an aspiration number which we have Assuming everything comes back to normal.
Manoj Sanghvi
It’s assuming that everything will be back to normal in a month’s time.
Operator
Okay. Okay. And so lastly on Ravi Technoforge, I just wanted to know your thoughts because in the opening remarks you said, you know, you’re looking at new customer segment as your new capex comes into operation. So just wanted to understand means what kind of new customer segment are we exploring? And let’s say in FY27, what is our growth and margin outlook for this revolution? Technoforge business.
Manoj Sanghvi
So same RTL this year we can consider a growth of 10 to 15%. However next year when the new capacity which we are installing comes into play then the new customer and the new segment of some auto parts is what we can cater to.
Operator
Okay. Okay. So we are toning down our guidance from 15 to 20% to 10 to 15% in 27. Correct.
Manoj Sanghvi
Yeah, yeah. 10 to 15.
Operator
Okay. Thank you so much sir. Very helpful. All the best.
Manoj Sanghvi
Thank you.
Operator
The next question comes from the line of Parth Bow sir with Investech India. Please go ahead. Hi sir. So thank you for the opportunity. Sir, I want my first question related to the schooling business. What is the outstanding order book over here?
Manoj Sanghvi
Current outstanding order book is. I. I think it is close to 550 crores.
Operator
Okay, so 550 crores. So sir, basically what we are seeing is 4800 to 5000 crores from, from the standalone business. 10 to 15% growth for Ravi Technoforge and another 20% sort of 20, 25% growth for Fino. Right. Got it. Got it. And so like just you know, continuing previous participants question, you, you said margins would be stable or you’ll be able to hold it because your mix in carbon steel would be on the better side. But sir, still if you look at our order book outstanding for ss it’s quite lower.
Right. So on year on year basis I’m assuming that carbon steel profitability per ton or however we see it, it will still be lower. Right. Versus cs. So that should have a bearing on our console. That should have. Yeah. Versus ss. Even though your CS share both revenue and you know even the mix goes up. But it will still be lower than ss. Right. Which should have a bearing on our EBITDA margin numbers.
Manoj Sanghvi
Yes. But a lot of stainless steel projects are also under bidding. So we will, we will continue to maintain that mix of order book both for stainless steel as well as carbon.
Operator
Got it. And answer, what is our capex number for 27 and 28? Absolute number.
Manoj Sanghvi
At the moment on standalone basis we have one Capex which is for Saudi. Yeah, yeah, yeah. Other than that the, the routine capex items are 150 to 200 crores. Okay,
Operator
Got it. Got perfect. Sir, thank you so much for answering my questions.
Manoj Sanghvi
Thank you.
Operator
The next question comes from the line of Divyansh Gupta with latent pms. Please go ahead.
Shailesh Raja
Hello. Hi. Sir, the question was does RTL also have order book kind of a metric or it’s more.
Manoj Sanghvi
They have a schedule kind of a metrics.
Shailesh Raja
Got it. Yearly
Manoj Sanghvi
Forecast based on calendar year is submitted by the international customer and domestic customers based on the financial year they give the early forecast.
Shailesh Raja
Got it. And this growth guidance for RTL that we have given how much of it is let’s say through forecast or is there a delta or how should we see the current forecast against the Growth guidance, is there a gap?
Manoj Sanghvi
No, there is no gap against the forecast and our guidance.
Shailesh Raja
But that implies that there is no incremental order when expected because of capacity constraint is that we have
Manoj Sanghvi
Limited scope of increasing that a little bit.
Shailesh Raja
Got it. Understood. Understood. And in the order book what would be the exposure to the Jaljeevan mission or water segment
Manoj Sanghvi
At the moment? Not much. I think all put together. Say Jalgivan mission or not? Jalgivan mission, water all put together would be 300 to 400 crores.
Shailesh Raja
Got it. Got it. And understood. And sir, on this pooling business. So the 550 crore order book that we have is expected to be converted into revenue over what timeline.
Manoj Sanghvi
So this year about 500 crores will be 480 to 500 crores is what we plan within this year.
Shailesh Raja
Got it. Understood. And the last question on this pool price itself. So let’s say if someone is setting up a nuclear plant from a land equation to the actual, let’s say it going into supercritical or whatever the the plant going critical mode. Right. At what stage does a EPC player I’m guessing places order with ratna money to say that I need X tons of spool pipes of this design and configuration. And how much is a lead time to design and deliver the pipes?
Manoj Sanghvi
Yeah, once the land is acquired, I think anywhere between one to one and a half year pipes pools will be ordered.
Shailesh Raja
Got it. And for us to manufacture and deliver it would take how much time on an average? I know specs to specs things can change. But
Manoj Sanghvi
To 4,5000 tons every year, maybe 1500 tons odd is what is required to be supplied.
Shailesh Raja
No, I was asking from a timeline perspective. You got an order today so you need to manufacture and deliver it in let’s say six months, a year or there is a whole schedule that. Okay,
Manoj Sanghvi
It starts from six months and goes on up to 18 months.
Shailesh Raja
Got it. That. That implies that our 550 crore of order book is basically at more or less like a fag end of the order books. Order pipeline. Right. Because I just got a book. 500 is done. Is expected to be done within this year.
Manoj Sanghvi
Yes.
Shailesh Raja
So what is the active pipeline of orders that we have either being nominated or being discussed under negotiation or under bidding?
Manoj Sanghvi
Total bidding right now is close to 400. $500 million. How much we will get we will only be able to say when the time comes.
Shailesh Raja
Got it. And I’m guessing there’s no historical past win rate that we can refer given the newness. Got It. Understood, Understood. Yeah, that’s it. From my side. Thank you.
Manoj Sanghvi
Thank you.
Operator
The next question comes from the line of Dhruv Saraf with Bowhead India fund. Please go ahead. So just wanted to check in your FY24 annual report you had mentioned that the export business was roughly 40% of the stainless steel business. So what would be the rough ballpark figure? Now if you don’t want to give specific numbers.
Manoj Sanghvi
Export of stainless steel division. Hello. Hello. Yes
Operator
Sir, I’m talking about the export business in stainless steel.
Manoj Sanghvi
Yeah, so it, it varies between 35 to 40% of our volumes
Operator
Of your volumes. Okay, so just one more follow up on the carbon steel business. You know you repeatedly highlighted that oil and gas capex in the country has been weak. But sir, if I were to just look at let’s say the number of CGD connections that have been rolled out, which I can see from the PNGRB website, that seems to paint a different picture compared to, you know, what we’ve been speaking about. So can you help me reconcile the difference? Is it a different sector within oil and that you’re speaking about or is it something that I’m missing?
So you can understand this.
Manoj Sanghvi
So what is the question that the CGD numbers are going up and,
Operator
And yet you know, somehow you know, it’s not trickling down to line pipe demand for us. So I’m just not being able to type both the situation.
Manoj Sanghvi
No, so. So pipe procurement is the first phase for any CGD operator. So whatever was procured say from 21 to 24, you would see those connections going up because of that network.
Operator
Okay. And so the recent government ruling that has come out about you know, accelerating further accelerating the CDD rollout, can that lead to you know, front loading of a lot of demand in this space over the next, let’s say what, 12 months.
Manoj Sanghvi
Yes. All the CGD operators have been by the government have been informed to increase the network. But of course again there are private players viability and at this steel price and the capex cycle, whether it is viable or not, those studies will go on. Yes, but eventually once everything settles. Yes. The demand for CGD also will go up.
Operator
Okay, sir, and whenever you talk about CGD could be Mostly, let’s say ERW or would it also be etc. Also for the long distance pipeline?
Manoj Sanghvi
No, mostly ERW pipes. Okay,
Operator
Sure, that. Thank you so much. The next question comes from the line of Saurabh Patwa with Quest Investment Management. Please go ahead.
Shailesh Raja
Yes sir. So thanks A lot for giving this follow up opportunity. So just two things with one is that this 4800 kind of a target which you have,
Operator
This is for the standalone business. It’s for the entire company.
Manoj Sanghvi
It’s on standalone basis.
Operator
Okay. And this is. And this is on the basis of the current pricing or is that like you already build in the the orders that you have some of these would actually have the raw material price increase is already there. How do you plan to cope up with that? So do you have those levers with you to increase the pricing in some of these cases?
Manoj Sanghvi
No. So for orders, whatever we have say raw material is already tied up. We don’t. Our orders are mostly back to back.
Operator
Okay. And. And this, and the this target which you have includes is basis the current pricing for the. Assuming you get the incremental order it is considering.
Manoj Sanghvi
Yeah. The current price.
Operator
Okay. Okay, great. Thanks a lot.
Manoj Sanghvi
Thank you.
Operator
Thank you. The next question comes from the line of Sonal with present capital. Please go ahead.
Sahil Sanghvi
Hi sir, this is Sonal Minas. I hope I’m audible.
Manoj Sanghvi
Yes, you are.
Operator
My question is again with regard to the guidance for the standalone business. When you compare it to your standalone numbers for this year and then see the guidance it means roughly more than 25% growth in the standalone business. So just want to double click and understand what gives us the confidence in our order book compared to same time last year is a little lower. If there is anything significant in terms of wins order accretion which you can talk about to help us understand.
Manoj Sanghvi
So there are two things. One, the capacity which was not available, which was being shifted from one location to another location is now operational in this year. So. So one sector of growth or one scope of growth is from that particular capacity.
Netra Deshpande
Okay.
Manoj Sanghvi
We are going to. If. If we see we are going to reach back to. To what we were a year back.
Operator
Got it sir. And the demand remains the same as a year back. Basically that is what also the assumption is.
Manoj Sanghvi
Yes. At the moment with whatever announcements we see, definitely the third and fourth quarter seems to be quite promising. However, as indicated earlier things we hope that things settle down in next month or so.
Operator
Got it? Got it sir. That’s it for myself. Thank
Manoj Sanghvi
You. Thank you.
Operator
A reminder to all participants, you may press star and one to ask a question. The next question comes from the line of part Bhavsar with Investech India. Please go ahead.
Manoj Sanghvi
Hi sir. Thank you for the opportunity. Sir, just one question. How are we exposed
Operator
With you know the gas supply? Like what. What percentage of cost has been increased. And how are the supplies currently?
Manoj Sanghvi
Increase has been substantial. So yes, the cost part has gone up. Supplies currently still not an issue.
Operator
And this would only hit your carbon steel pipe side of business, right?
Manoj Sanghvi
Some part of stainless steel also because we have some heat treatment furnaces working on gas.
Operator
Right. Okay. So sir, what percentage would it be like in terms of total cost on cons, on standalone or whatever? Like if whatever you can help me with the cost increase
Manoj Sanghvi
Number offend.
Operator
Okay. Okay. No worries, sir.
Manoj Sanghvi
Yeah.
Shailesh Raja
Thank you.
Manoj Sanghvi
Thank you.
Operator
Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to Mr. Sahil Sanghvi for the closing remarks.
Sahil Sanghvi
I just wanted to thank all the participants for joining the call and also thank you management for very patiently answering all the questions. Mano. Sir, any closing remarks from your side?
Manoj Sanghvi
Just a thank you message to everyone for participating. In case if you have any further questions, you can reach out to us. Thanks. Bye.
Sahil Sanghvi
Thank you. Thank you.
Operator
Thank you sir. Ladies and gentlemen, on behalf of Monarch Network, Net Worth Capital Limited, that concludes this conference call. Thank you for joining us and you may now disconnect your lines.