Steelcast Ltd (STEELCAS) Q4 FY23 Earnings Concall Transcript

Steelcast Ltd (NSE : STEELCAS) Q4 FY23 Earnings Concall dated May. 24, 2023.

Corporate Participants:

Ronak Jain — Investor Relations

Chetan M. Tamboli — Chairman & Managing Director

Analysts:

Ankur Kumar — Alpha Capital — Analyst

Pritesh Chheda — Lucky Investment Managers — Analyst

Aashav Patel — Molecule Ventures — Analyst

Harshit Toshniwal — BottomsUpResearch — Analyst

Karthi Keyan — Suyash Advisors — Analyst

Mahesh Atul — Atul Advisor — Analyst

Sahil Sanghvi — Monarch Networth Capital — Analyst

Vignesh Iyer — Sequent Investments — Analyst

Neha Idnani — Minerva Invest — Analyst

Kanwar — — Analyst

Presentation:

Operator

Ladies and gentlemen, good day and welcome to the Q4 and Year Ended 31st March 2023 Earnings Conference Call of Steelcast Limited, hosted by Orient Capital. [Operator Instructions] And there will be an opportunity for you to ask questions after the presentation concludes. [Operator Instructions] Please note that this conference is being recorded.

I now hand the conference over to Mr. Ronak Jain from Orient Capital, their Investor Relations partner. Thank you and over to you sir.

Ronak Jain — Investor Relations

Thank you. Good afternoon, everyone. Welcome to the Q4 and year-ended 31st March 2023 earnings call of Steelcast Limited. Today on this call, we have Mr. Chetan Tamboli, Chairman and Managing Director, along with Mr. Rushil Tamboli, Wholetime Director, Mr. Subhash Sharma, Chief Financial Officer, and Mr. Umesh Bhatt, Company Secretary. This conference call may contain forward-looking statements about the company which are based on the beliefs, opinions, and expectations as of today, and actual results may differ materially. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. A detailed safe-harbor statement is given on page two of the Company’s investor presentation which has been uploaded on the stock exchange and the Company’s website as well.

With this, I will now hand over the call to Mr. Chetan Tamboli, sir, for his opening remarks. Over to you, sir.

Chetan M. Tamboli — Chairman & Managing Director

Very good afternoon to everyone on this call, and on behalf of Steelcast Limited, I welcome you all to this Q4 FY23 earnings call of our company. I hope everybody had opportunity to go through the investor presentation which has been uploaded on the stock exchange yesterday.

Markets across the globe faced major challenges in FY23 due to concerns of high inflation, resulting increasing around the world. Recession fears and turmoil in the global business to make the market more fragile during the later part of the last fiscal year. India is projected to be the world’s fastest-growing economic before on the back of robust macroeconomic conditions, despite the global turmoil, we are able to grow in terms of volumes, revenues and profits at operating level.

Talking on the financials. The revenue in FY23 grew by 68% on a year basis, the INR476.8 crores the highest in the history of this company against FY23 revenues of INR302 crores. In Q4, we reported revenue of volume be crores, a growth of 29% year-on year business and revenue is from geography domestic revenue grew by 40% year-on year, exports grew by 70% on the business the FY23 EBITDA grew by 79% on a year basis with a margin expansion of 82 basis-points. In Q4, we reported EBITDA of INR31 crores, as against INR17.6 crores in the corresponding quarter of FY22, with the growth of 76%, PAT stood at INR70.5 crores in FY 23, a robust growth of 112% year-on year basis. Reported PAT of INR19.5 crores crores, versus INR9.6 crores in the same-period last year with a year-on year growth of 103.6%. Volume growth, operational efficiencies, cost rationalization efforts let increase in overall profitability and margin expansion.

On the residential plan we commissioned by mega solar power plant per captive use effective March 23. This has led the company in the direction of being felt in power and reducing the carbon footprint. For the hybrid power plant of both by likely to be commissioned on or before 30 June. Both the plants will power cost-savings of INR10 crores annually. The commissioning of power plant was delayed due to certain regulatory issues, which have now sorted-out. Both these plants will be there only 80% of our total power requirement with capacity utilization in the balance 20% requirement the state electricity board. Working capital days reduced substantially 23 on 143 days. FY23 increased by 37.9% versus 23.3% FY22. Return on capital employed for FY23 also increased from 42.3%, versus 28.4% in FY22.

Our Company incurred capex of about INR52 crores without any additional term loans. This capex is for investment of this INR4.5 crores for hybrid power plant for everyone’s information we remain long-term debt-free. Short-term debt reduced from INR62.79 crores to INR23.60 crores during the year. The Company has signed a long-term supply agreements with large for the railroad industry the long-awaited year approval has been received last month. And the serial supplies should hopefully start from Q3 ’24 onwards. Our full-year capacity utilization was that 54% for FY23.

In the current financial year ’24, the company is also planning to completely pay-off the short-term that’s making the company 100% debt free. The company has completed 63 years since inception and 50 years as private limited company. To celebrate the significant milestone, the Board has declared a special interim one-time dividend of 63%. In-line with company’s policy of 30% payout of PAT, the Board has recommended a final dividend of 54%, totaling 235% dividend for year FY23. This needs to be approved by shareholders at the AGM. Keeping in mind the geopolitical conditions, high interest and high inflation rates across the globe we see a flat growth in the first-half of financial year FY24. But with the World Bank recent report of April, the world growth to substantially improve. So the effect on us we will have both upgrade from Q3 of FY24 onwards.

Thank you again and if there are any questions, I will request Orient Capital to moderate this. Thank you.

Questions and Answers:

Operator

Thank you very much, sir. We will now begin the question-and-answer session. [Operator Instructions] The first question is from the line of Ankur Kumar from Alpha Capital, please go ahead.

Ankur Kumar — Alpha Capital — Analyst

Hello sir. Congrats for a good set of results. And thank you for taking my question. Sir, first question is on, you have been saying in the last call that our monthly, quarterly run-rate is 4,000 tons, so which is expected to go to 5,000 per quarter in FY24. So can you comment, what was the volume in this quarter and you are saying that one it will be only slightly. So what can you quantify that, please.

Chetan M. Tamboli — Chairman & Managing Director

The volume grow up numbers of Q4 will be 4,000 tons plus. And as I explained with the high-interest rates and high inflection across the world, we should have probably a flat growth till the first-half of this year. And if you see the macroeconomic conditions across the world and also in India, inflation should soften in the next three to four months time. And we would expect gross bound at some Q3 ’24 onwards.

Ankur Kumar — Alpha Capital — Analyst

Sure sir, and sir on US Railroad side, you are saying that Syria supply will start from Q3. So what kind of volumes, we can expect — volume or revenue we can expect from there in the Q3.

Chetan M. Tamboli — Chairman & Managing Director

As of now we don’t have exact numbers, now that we have bought the AR approval and the Company is through supply to the railroad industry, we plan to speak to our customers and have some roadmap made so that Syria supplies as I said can start from Q3 onwards, but maybe in the next call we will be able to give you more clarity on this.

Ankur Kumar — Alpha Capital — Analyst

Got it sir, and sir on margins side, last two quarters have been 26%, which is like higher-end of the range that we have been guiding. So we expect this 26% to continue in the first-half of next year.

Chetan M. Tamboli — Chairman & Managing Director

As I have been always saying in all the calls that we are at about 22% EBITDA margin. Then this extra 3-4% we try and attempt to get it from cost-reduction measures, implementing operating efficiencies or exchange benefits or things like that so one should consider that we are able to get going with the process that get to 2-3% more.

Ankur Kumar — Alpha Capital — Analyst

Got it sir, and sir on just said, we see there is an increase. So can you please comment on that.

Chetan M. Tamboli — Chairman & Managing Director

Please repeat your question.

Ankur Kumar — Alpha Capital — Analyst

Sir, our fixed assets seems to have gone up, but we were already running at low utilization, so why has it just had gone up.

Chetan M. Tamboli — Chairman & Managing Director

See, this is an engineering industry and we make different components for different industries. So year-on year basis, you’ll see some bottlenecks happening across the value stream of the company. So this is for debottlenecking and balancing equipments. So in terms of capacity, yes, we are at 54%. But year-on year basis, be able to get the best or replace older equipments and keep balancing the manufacturing floor, and debottleneck it year-on year. And out-of-the capex INR23 crores is from solar power plant. So investment made for the balance sheet basically there INR24 crores.

Ankur Kumar — Alpha Capital — Analyst

Sure sir, thank you and all the best.

Operator

Thank you. The next question is from the line of Pritesh Chheda from Lucky Investment Managers. Please go-ahead.

Pritesh Chheda — Lucky Investment Managers — Analyst

Yes, sir. What kind of volume most likely will do in FY ’24 now based on whatever your commentary of first-half being flat and pickup in second half?

Chetan M. Tamboli — Chairman & Managing Director

See, I think there are lot of uncertainties around there will be numbers in the first-half and second-half for sure. But overall, we should we are attempting to do much better in the next financial year compared to this year.

Pritesh Chheda — Lucky Investment Managers — Analyst

Okay. Sir, on the power side, is those solar power assets now live. And we will see the cost-benefit coming in quarter one.

Chetan M. Tamboli — Chairman & Managing Director

For example, the solar power, exclusive solar power has been commissioned on March 30th. So benefits has to come from first half onwards. The hybrid power plant because of their Gujarat government regulatory delays the company contract if they have not been able to sort out, but they are sorted-out now and that should be commissioned on or before June. So the hybrid benefit will start accruing some cost of July onwards, but the solar plant than any have started coming effective first April.

Pritesh Chheda — Lucky Investment Managers — Analyst

Okay, okay and any changes in the realization that you envisage.

Chetan M. Tamboli — Chairman & Managing Director

Input pricings have sharpened towards February-March of 2023. So we have dropped pricing by about 1.8%, impacting post April.

Pritesh Chheda — Lucky Investment Managers — Analyst

Okay, thank you very much, sir.

Chetan M. Tamboli — Chairman & Managing Director

Thank you.

Operator

Thank you. [Operator Instructions] The next question is from the line of Aashav Patel from Molecule Ventures BMS. Please go-ahead.

Aashav Patel — Molecule Ventures — Analyst

Sir, congratulations on standard set of numbers. So my question is that, over last year — over last many years, we have been putting efforts to move over sales mix from largely new capex driven sales to towards the replacement demand sales. So how far have we achieved that endeavor, and where are we what is the outlook going-forward on the same.

Chetan M. Tamboli — Chairman & Managing Director

The goal is to also entered the replacement market over time, but as of now for FY23, 100% sales are to OEMs. So the three growth drivers, which we have is volumes go into the replacement market certain mining products. Defense in India and also the North American railroad industry. So those are the three future drivers.

Aashav Patel — Molecule Ventures — Analyst

Sir, any outlook, any internal targets, which you are maintaining to achieve over the next couple of years, say, three to five years.

Chetan M. Tamboli — Chairman & Managing Director

The target means in terms of?

Aashav Patel — Molecule Ventures — Analyst

To achieve the replacement demand in the mix. Replacement demand in the total mix…

Chetan M. Tamboli — Chairman & Managing Director

The macro numbers we have in mind is in three to four years at least 10% of our sales should go into replacement market.

Aashav Patel — Molecule Ventures — Analyst

Sure, sure. Okay and sir next is, can you please mentioned our top three clients and what proportion of do they contribute to the overall sales mix.

Chetan M. Tamboli — Chairman & Managing Director

Yeah, on grounds of confidentiality, we can discuss that on a one-on-one basis because we don’t know, maybe the competition is also on this call. We would like to refrain from doing this.

Aashav Patel — Molecule Ventures — Analyst

Okay and sir, can you please guidance on the order book as of now what orders, do we have in-hand.

Chetan M. Tamboli — Chairman & Managing Director

The order book as of now is about INR123 crores into more than one case, three months of sales.

Aashav Patel — Molecule Ventures — Analyst

Okay. And sir, last question from my side. What was the volume in FY23.

Chetan M. Tamboli — Chairman & Managing Director

15,275 tons.

Aashav Patel — Molecule Ventures — Analyst

Okay, thank you.

Operator

Thank you. [Operator Instructions] We have the next question from the line of Harshit Toshniwal from BottomsUpResearch. Please go-ahead.

Harshit Toshniwal — BottomsUpResearch — Analyst

Hello sir. Hello? Okay, so congratulations for the good set of numbers, sir. Few questions, the first one is on raw-material sourcing, so I think a lot of it comes from along and which is a ship recycling so I think there are many news articles and because of some regulation, perhaps, TD manufacturers will have to buy from a recognized quality standards, so which is right that a lot of used to happen from the shipyard has now reduced over the last two-three years. And that is, helping us in terms of sourcing on quarter our own steel and that is having some advantage in terms of our overall profitability. Now, if you can throw some color that, how long this sustains, how much of it is sustainable. And do you think it’s a very tangible advantage which we have for the next four-five years. So that’s the first question.

And the second question which I had was that Hello. I will just add the second question also, sir. So that is more relating sir, you mentioned about inflation, et-cetera, impacting the overall demand in H1, H2, but what I I’m trying to understand fundamentally that a few of the larger customers like obviously the OEM manufacturer in US. So, I’m not taking the names, since you mentioned the confidentiality, but the larger players in this segment. When we listening to their investor calls, they still sound very bullish on the overall demand environment so rather this was one quarter where they were guiding of some kind of inventory management, because there was an existing inventory in the channel, which has also now probably behind us, and they all have guided for a decent crores over ’23 also, just want to understand that borders why is it that we are expecting a flattish thing in H1 because most of our end-customers are seeing that positive growth see there itself.

Chetan M. Tamboli — Chairman & Managing Director

Yeah, I’ll try and-answer your question. One is, we do not buy anything from the Alan shipyard. So whatever happens is one is really not affected to us on an ongoing basis.

Harshit Toshniwal — BottomsUpResearch — Analyst

So when you say, we do not buy, not we might not buy directly from shipyard. But does that situation, we would be buying from an intermediary and but cost advantage is something, which benefits us. Or do you think that it actually there is no benefit.

Chetan M. Tamboli — Chairman & Managing Director

And because of the location that we are very close to shipyard is already 35 kilometers away, then there will be a cost advantage, because another area is becomes the steel hub of India, replacing the place is in Punjab, things like that. But so we may be buying from the downstream industries of the shipyard. But really, whatever happens in the line, we are not affected by. So let’s say, the answer to the first question is regarding the OEMs are giving guidance that. That they should be. I hope this is what happens, but our customers, the feedback is that we should have a flattish growth in the first-half and then with inflation and this is coming down over the next three-four months and a good growth rate in FY 24, so if we have to have a good growth rate in ’24, start affecting us from towards the end-of-the calendar year, which is Q3 onwards. So that’s how we interpret this as the second-half for us which is October to March period of FY24 will be better and we expect the growth to bounce-back because of various reasons which I mentioned about.

Harshit Toshniwal — BottomsUpResearch — Analyst

Okay, got it, sir, one more question. So we have given in our presentation, we have mentioned, we have been saying this on our call that we are trying to diversify into new industries, and we are preparing more, which actually able to those products. US Railroad, something which we get to see from maybe Q3 onwards, but still I mean, in over the last six-seven months you added new customers on the railways, defense, all those one, because if I remember, is it fair happening from defense organization and large product and, but I just trying to understand that I mean, exactly we are, when we say that we are trying to diversify, making new moves on those segments.

Chetan M. Tamboli — Chairman & Managing Director

See the future growth drivers for us as I mentioned earlier has been will be depends the North American railroad and of course the risk western markets. And there has been a constant ongoing efforts made some breakthroughs in defense in the month of — beginning of this month of May, we made some special parts for Combat Vehicle begin depends industry there been approved. So the efforts are on. So in the future two three years, we should do well in all these industry.

Harshit Toshniwal — BottomsUpResearch — Analyst

Okay. The reason I mean the only thing is that borrowers that 15,000 as a utilization. I mean that’s 1,000 per quarter. We have been in that range for a very long period now. And just that we have consolidated, but we still have a large capacity, which is our many UP, right, we went in past, we had additions at 70 the number. Whenever there is a slowdown, because it is just, but at least as an investor get user as it leads to —

Chetan M. Tamboli — Chairman & Managing Director

I need to make a correction here. Volume growth in FY23 is far better compared to FY22.

Harshit Toshniwal — BottomsUpResearch — Analyst

So I’m saying that more from a quarter point-of-view, so last two three quarters, we have seen that in that 4,000 ton range.

Chetan M. Tamboli — Chairman & Managing Director

So as we are successful in penetrating markets as we keep on getting new customers so things will improve over-time. These kind of industries really quarter-on-quarter nothing happened because order to meet the lead times are very long. Made it is already we’ve a PPAP, which is the new samples. The time is anywhere from 15 to 18 months, so our plans are laid out. We have a long-range plan in-place. We monitor this very closely. So as we move forward. This will happen.

Harshit Toshniwal — BottomsUpResearch — Analyst

Got it sir, perfect, thanks a lot, sir, thanks a lot.

Operator

The next question is from the line of Karthi from Suyash Advisors. Please go-ahead.

Karthi Keyan — Suyash Advisors — Analyst

Sir, good afternoon. I wanted to understand the update on the American railroad approval that was spoken about some time ago, where are we on that and when can we expect some kind of shipments on that side sir.

Chetan M. Tamboli — Chairman & Managing Director

As I’ve said, but the there was a delay in getting the approval, which we got it in the month of April. And the serial supplies will start from Q3 FY24 onwards.

Karthi Keyan — Suyash Advisors — Analyst

Okay. Actually, your original estimate was that this could scale-up over-time to 5,000 tons. Does that still remains, sir.

Chetan M. Tamboli — Chairman & Managing Director

Absolutely. This is what we want to do we want to do it 15% of our sales into the North American railroad industry. So 15% of 30,000 ton is for 4,500 tons.

Karthi Keyan — Suyash Advisors — Analyst

Sure, sure. Correct, yeah. And by which year, can we see this kind of volumes, FY25 or ’26.

Chetan M. Tamboli — Chairman & Managing Director

Years kind of the things which you need. So we do it gradually.

Karthi Keyan — Suyash Advisors — Analyst

Okay, okay, second thing, sir, to ramp-up production for the full 30,000 tons we have all kind of environmental clearances in-place. And therefore, that shouldn’t be an issue for it.

Chetan M. Tamboli — Chairman & Managing Director

Not at all. We have all the side. Clearances. All the state utility departments. Connected for maybe is actually. So we are — we have no issues there are no roadblocks in terms of approvals.

Karthi Keyan — Suyash Advisors — Analyst

Okay, excellent, excellent. Sure, sure. And you were planning a modular expansion of 10,000 tons. Is there any visibility for that at this point in time or does that have to wait for a better opportunity more opportune time sir.

Chetan M. Tamboli — Chairman & Managing Director

No. And the studies are where the engineering layouts are what will be addressed maybe for an appropriate time and we take a call somewhere towards the end of FY24.

Karthi Keyan — Suyash Advisors — Analyst

Okay. Okay, okay. Sure, thank you very much and very best wishes.

Operator

Thank you. The next question is from the line of Kanwar from Garg Advisors [Phonetic]. Please go-ahead. Mr. Kan, I have unmuted your line. Kindly proceed with your question. As there is no response from the current participant we move onto the next question which is from the line of Mahesh Atul from Atul Advisor. Please go-ahead.

Mahesh Atul — Atul Advisor — Analyst

Hello? Sir, congratulations on good set of numbers. My first question would be, as in our previous con-calls you have stipulated that be saving some 20 in-demand. I mean, 20% growth year-on-year, level in the last con calls. Where we on that currently what percentage of this would come from exports and what from the domestic market. I mean, what kind of below points we are seeing in the domestic and export markets. And my second question would be, if you can actually give us a quantum of this American railroads severance in terms of tons that’s the you want to see that, that will be getting on that particular. Are they not something. So these are my questions.

Chetan M. Tamboli — Chairman & Managing Director

Yeah, terms of Year-over-Year growth. We will have shortly. I had a growth had this geopolitical situation. When I say it’s and high inflection upon the world was not there. But as I said earlier, we expect all these things to pull-down progressively by September 2023. So demand should bounce-back and I because we feel the macroeconomic conditions world over. And also the World Bank report of it is there that there will be a recovery sometimes Q3 onwards. And demand to bounce-back. So definitely, you’ve seen from FY21 maybe FY27-28. We will have a CAGR growth, profitability and 20% for sure. Only thing is because of all this. Uncertainty neither are growth or a slight de-growth or one or two quarters. And in terms of the railroad, which I said earlier that our long-range plans, there is that we want to do 15% of our capacity in that window industry. And 50% of 30,000 tons is 4500 tons. So around that we want to be this distribution should reach in other, as I said two enough prepared up we are saying.

Mahesh Atul — Atul Advisor — Analyst

This is in 2.5-3 years timeline right?

Chetan M. Tamboli — Chairman & Managing Director

Absolutely.

Mahesh Atul — Atul Advisor — Analyst

Sir one more question, if can actually give us a breakup on like what percentage of our revenues I mean in the segment-wise revenues. I mean, like what is our top three revenue sources segment from where we — FY23.

Chetan M. Tamboli — Chairman & Managing Director

We would be — we would like to refrain from giving these numbers over these investor calls, because we don’t know, who is present and the competition. We also take this, but. So, maybe on a one-on-one call or we can talk more in detail.

Mahesh Atul — Atul Advisor — Analyst

Fair enough, sir. Fair enough. Congratulations sir and all the best.

Operator

Thank you. The next question is from the line of Sahil Sanghvi from Monarch Networth Capital. Please go-ahead.

Sahil Sanghvi — Monarch Networth Capital — Analyst

Good evening, sir. Congratulations again for a good performance. My first question is, sir the new branding for a flattish growth in the first half. Is this on the volume or is this on the revenue front.

Chetan M. Tamboli — Chairman & Managing Director

So almost the same. Because once you have a flat growth. So basically, it’s a combination of both the volumes and the revenues.

Sahil Sanghvi — Monarch Networth Capital — Analyst

Okay, because if realization are tending downwards, then we have.

Chetan M. Tamboli — Chairman & Managing Director

As I said that because of the softening of input prices in February-March January-February-March we again gave across-the-board, a price reduction of 1.82%. I think these numbers are not significant for these two, we turned upside-down. So this because of the movement of input prices either up or down so these fluctuations matter.

Sahil Sanghvi — Monarch Networth Capital — Analyst

How much further reduction do you expect in the realizations to come with steel prices have connected quite a lot of noise market…

Chetan M. Tamboli — Chairman & Managing Director

In our case since steel scrap maybe 35, 40% percent of the overall inputs. We have large amount of other inputs. So whatever we expect now that we should be we should stabilize here at least for the next 20 months time.

Sahil Sanghvi — Monarch Networth Capital — Analyst

Right sir. My second question is that there has been really good working capital release in FY23 good reduction in the inventory days and also on the receivable days. So do we continue at this rate now going-forward, what-if do to in-store is.

Chetan M. Tamboli — Chairman & Managing Director

Look for our kind of industry and the product mix, we are doing and the end-users we are catering. So these are ideal numbers, but that is surely a room for improvement and mix, our endeavor to constantly work on this, that how we reduce the working capital cycle, how do we reduce the throughput time so that effort is on. We do well and we will get further squeeze.

Sahil Sanghvi — Monarch Networth Capital — Analyst

Any timelines we have on when do we start the defense orders.

Chetan M. Tamboli — Chairman & Managing Director

As I said, we have the verbal approval from Ministry of Defense for combat vehicles. We will have formal written approval also in the next few weeks time. And then depending on their requirements we have to happened. So we don’t have visibility as of now, when we do this or when this will happen. But very important part is the approval of this company tracks of combat vehicle, which has been imported all these years. So we are one of those may be one or two companies in India, have been approved. So we’ll have to see when the requirement comes.

Sahil Sanghvi — Monarch Networth Capital — Analyst

And one last question that. I have is. How are we what are we doing on the replacement demand front. I mean on grounding using tools. I mean, what is the progress on that front.

Chetan M. Tamboli — Chairman & Managing Director

But we are in touch with many people we are under discussion also. So this should happen not very long-time but the efforts are on. Some efforts get fortified in a quarter, some efforts take three quarters some please take maybe five quarters, but the direction is clear and we will get there.

Sahil Sanghvi — Monarch Networth Capital — Analyst

Sure. Thank you so much and all the best.

Operator

Thank you. The next question is from the line of Vignesh Iyer from Sequent Investments. Please go-ahead.

Vignesh Iyer — Sequent Investments — Analyst

Sir, congratulation on good set of numbers. I just wanted to know how much tons when we do any contact forward of this year FY23.

Chetan M. Tamboli — Chairman & Managing Director

We’ve done about 4,000 tons.

Vignesh Iyer — Sequent Investments — Analyst

Around 4000 tons right? Yeah, so when you guidance but like this style type of growth we can expect that our 4,000 tons in next two quarters, right.

Chetan M. Tamboli — Chairman & Managing Director

We should do that.

Vignesh Iyer — Sequent Investments — Analyst

Yeah and sir this on the–

Operator

Mr. Iyer I’m sorry to interrupt, voice is breaking. I would request you to use your handset please.

Vignesh Iyer — Sequent Investments — Analyst

Okay, yeah. So when it comes to the power plant we have started one power plant end of March. And what is the size of the hybrid power plant that is coming in the month of June.

Chetan M. Tamboli — Chairman & Managing Director

4.5 MW.

Vignesh Iyer — Sequent Investments — Analyst

Okay, so, so basically when you when you say around you will be saving around 10 crores. In power cost for the entire year. We can at least see 1.5 crores of benefits coming from quarter one. Right.

Chetan M. Tamboli — Chairman & Managing Director

Yeah. I mean let’s say, at least from the solar plant is about. It will vary from 3.64 crores and in the hybrid is in very from 6.5 to 7.5 crores.

Vignesh Iyer — Sequent Investments — Analyst

Okay, okay, okay. Thank you sir, that’s all from me.

Operator

Thank you. The next question is from the line of Ashav Patel from Molecule Ventures BMS. Please go-ahead.

Aashav Patel — Molecule Ventures — Analyst

Sir, this is just a follow-up question, can you please. Give volume number FY22 and FY21 as well.

Chetan M. Tamboli — Chairman & Managing Director

FY21 was 7,500 tons. FY22 was 12,000 tons and FY23 was 15,745.

Aashav Patel — Molecule Ventures — Analyst

Okay and sir, last question, just to understand. We have installed capacity of close to 30,000 metric ton. And you mentioned that FY23 we produced close to 15,000 metric ton, but in the opening remarks you mentioned that our capacity utilization stands at close to 84%, so can you please clarify that.

Chetan M. Tamboli — Chairman & Managing Director

We said 54, full-year capacity utilization was 54% and the power generated from solar and hybrid power this new supply 80% of our requirement. These are the two numbers.

Aashav Patel — Molecule Ventures — Analyst

Sure, so sir, just to put into perspective over next three-four year if you are able to optimally utilize our existing capacity. We won’t need any maintenance capex from here on. Right. We have all the infrastructure in-place already.

Chetan M. Tamboli — Chairman & Managing Director

See for our kind of industry, which is a boundary. There will be the year-on year replacement of capex of about 42 for crores and some because of change in-product mix, some additional recruitments. So one should consider from 12 to 15 crores of regular capex happening.

Aashav Patel — Molecule Ventures — Analyst

Okay, but this was this would only be the maintenance capex, no.

Chetan M. Tamboli — Chairman & Managing Director

And so the maintenance on debottlenecking or things like that.

Aashav Patel — Molecule Ventures — Analyst

Sure, sure. Okay sir, that’s all from my side, sir. All the best.

Operator

Thank you. The next question is from the line of Neha Idnani from Minerva Invest. Please go-ahead.

Neha Idnani — Minerva Invest — Analyst

Good afternoon, sir. Thank you for the opportunity. Sir, just to ask you that last year, the volume growth was basically 27%, so the realizations have gone up by 30%, does it.

Chetan M. Tamboli — Chairman & Managing Director

Yeah. I think we have done that. The growth in volumes and the growth in revenues will not bad because depend on the prices, the sales prices will also go up. And those numbers will not be in tandem, they won’t be seen growth numbers for volumes in the same growth for the revenues. There will be a difference of time to time.

Neha Idnani — Minerva Invest — Analyst

Got it sir, and sir going ahead what kind of pricing we expect a flat pricing to continue.

Chetan M. Tamboli — Chairman & Managing Director

My personal view is that for our steel foundry engineering industry different inputs, the prices have stabilized. And we should see some stability for the next 12 to 18 months time.

Neha Idnani — Minerva Invest — Analyst

Okay, so basically flat pricing and then whatever volumes, we are able to manage, depending on the permanent. Got it, got it all. Second question is on the margins like in Q4, we did margins of 25.7%, and we still haven’t got the benefits of the full-line, the hybrid power plant. So in fact, we can do much higher margins in 26% once this kicks-in as well.

Chetan M. Tamboli — Chairman & Managing Director

Yeah assuming we do the same volumes and same revenues in the current year with with good operating efficiencies, the savings for the power plant that the bottomline.

Neha Idnani — Minerva Invest — Analyst

Got it. Okay, that’s it from my side. Thank you.

Operator

Thank you. [Operator Instructions] The next question is from the line of Mahesh Atul from Atul Advisor. Please go-ahead.

Mahesh Atul — Atul Advisor — Analyst

Thanks. Thanks for taking follow up. Sir, just wanted to know this segment that we are entering into. Are we going to maintain our margins indeed on this segment also. This is first one and what about your capex guideline for financial year ’24, because when you say you be doing five crores of maintenance capex, what all other capex we would be doing in the financial ’24.

Chetan M. Tamboli — Chairman & Managing Director

Yeah, as I said earlier and I keep repeating the same thing that we. For any this, we aim at 22% EBITDA margins. And then the rationalization measures cost-reduction we try to make those expect two-three 4%. So our aim is 22%. And your second question about the capex, the FY24 capex plan is about 12 crore and this is again, replacement of capex and. some debottlenecking imbalance.

Mahesh Atul — Atul Advisor — Analyst

So what are your plans regarding the cash that they because this year, our cash-flow nearly you’ve added the cash-flow from operations was really good. So I think if we maintain the same run-rate also the generating enough cash-in your books. What are your plans relating to cash that is we’ve been meeting. Are there any plans discussed by the Board.

Chetan M. Tamboli — Chairman & Managing Director

As I’ve said the needle-moving for capacity expansion around on a modular basis. We will take a call sometime towards the end of ’24. So if you decide then substantial part of the current year cash accruals. We really for capacity expansion. Now, yes, we don’t do any capacity extension for some more time, then we’ll ask the shareholders asked them what we should do.

Operator

Thank you. We have the next question from the line of from Kan from Garg Advisors. Please go-ahead.

Kanwar — — Analyst

Hello, hi, sir, am I audible. Yes. Hi, good afternoon, sir. Congratulations on great set of numbers. Sir I have two questions, first question is on the appointment of son, Mr. Rushil, as a whole time Director so I just wanted to understand what is does participate in the day-to day activities of the company and value to the company.

Chetan M. Tamboli — Chairman & Managing Director

See Rushil Tamboli was away for a year. And he has rejoined effecting May 16. And he will be taking part in operations of the company going forward. And even a year before he was actively involved in the day-to day operation.

Operator

I’m sorry sir. The participant has left the queue. We move on to the next question which is…

Chetan M. Tamboli — Chairman & Managing Director

I think you should also end now.

Operator

Okay. Sir, as you wish. Ladies and gentlemen, that will be — that was the last question for today. I would now like to hand the conference over to the management for closing comments. Over to you sir.

Chetan M. Tamboli — Chairman & Managing Director

On behalf of Steelcast, myself and all of us here, Mr. Rushil Tamboli, our CFO, Mr. Sharma, our Company Secretary, Mr. Umesh Bhatt we thank all of you for attending this call and taking time-out to interact with us. We look-forward for the next quarters investor call again, and wish you all have a nice day. Thank you.

Operator

[Operator Closing Remarks]