Venus Pipes & Tubes Ltd (NSE: VENUSPIPES) Q3 2025 Earnings Call dated Feb. 13, 2025
Corporate Participants:
Arun Kothari — Managing Director
Kunal Bubna — Chief Financial Officer
Analysts:
Dhruv Jain — Analyst
Sneha Talreja — Analyst
Unidentified Participant
Mihir Damania — Analyst
Romil Jain — Analyst
Aasim Bharde — Analyst
Arpit Agrawal — Analyst
Bijal Jitendra Shah — Analyst
Presentation:
Operator
Ladies and gentlemen, we welcome you all to the Q3 and Nine-Month FY ’25 Earnings Conference call of Venus Pipes and Tubes Limited hosted by Ambit Capital.
This conference call may contain forward-looking statements about the company, which are based on belief, opinion and expectations of the company as on the date of this call. These statements are not the guarantees of future performance of the company and may involve risks and uncertainties that are difficult to predict.
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 a touchstone phone. Please note that this conference is being recorded.I now hand the conference over to Mr Dhruv Jain from Ambit Capital. Thank you, and over to you, sir.
Dhruv Jain — Analyst
Hello, everyone. Welcome to Venus Pipes and Tubes Limited Q3 FY ’25 Earnings Call. From the management today, we have with us Mr Arun Kothari, Managing Director; and Mr Kunal, Chief Financial Officer. Thank you and over to you, sir, for your opening remarks.
Operator
They are there Kunal sir, your line is unmuted. Management, your line is unmuted.
Arun Kothari — Managing Director
My is audible. Mr Kunal. Okay. Yeah.
Operator
Yes, sir.
Arun Kothari — Managing Director
Good evening and a warm welcome to everyone on the Q3 and Nine-Month FY ’25 earnings call for Python Tubes Limited. I have been joined by Mr Kunal Budna, CFO; and SGA, our Investor Relations Advisors. We have uploaded our Q3 FY ’25 investor presentation on ISTO Exchanges and Company’s website. And I hope you had an opportunity to go through the same. We are pleased to report a steady performance for both Q3 and the nine months ended FY ’25. In Q3, our revenue reached at INR231.3 crores, reflecting a solid growth of 11.7%, while for the nine months of FY ’25, revenues stood at INR7 lakh c, making an impressive increase of 21.2%. This growth has been driven by a strong volume increase of more than 10% for Q3 FY ’25 and more than 20% for nine months FY ’25 on a year-on-year basis. The continued growth is primarily attributed to our exceptional export performance, which has been a significant contributor alongside increased penetration in our key markets. Our strategy of expanding our geographical reach and deepening relationship with our customers in existing business is yielding positive results. On the operational front, speaking of segment-wise performance, our segment delivered a revenue growth of 8% for the quarter and 17% on a nine-month basis, reflecting steady demand and increasing market penetration. On the wealth pie front, revenues grew by 4% for the quarter and 16% over the nine-month period. Coming to the geographical performance, speaking about export, this quarter marked our best export performance with all-time high export revenues of INR89.1 crores in the quarter, an impressive 153% year-on-year growth, the share of export — share of export revenue stood at 38.5% for the quarter, the highest recorded for any period. On a nine-month basis, exports sells by 216% to INR25.6 crores, reflecting our strong international market penetration. This exceptional growth in exports have been driven by several key factors. We have successfully created our presence in the US, Middle-East and Africa market with significant shipments of welded pipe during this quarter. This achievement is the result of our strategy efforts, including the establishment of a dedicated marketing team that has played at in driving the performance. Additionally, we have actively participated in immens, fairs and other industry forums to enhance our visibility and foster relationship with key stakeholders. These initiatives are delivering tangible results and we are confident in our ability to replicate the strong performance in Europe within these markets. Europe continue to be our largest export market with an extensive dealer network and growing experience of our products. We have been able to maintain a strong foothold in the region, our focus on offering high-quality products, competitive pricing and superior customer service has reinforced our market position and we remain confident in sustainable — sustaining our growth trajectory in this key geography. We will continue to build-on this momentum by further strengthening our presence in international markets, particularly in the Middle-East and South Africa after Europe and US, while also expanding our product portfolio our commitment to quality, a customer-centric approach and a strategic market initiative position as well — position us well for sustained export growth in the coming quarters. Speaking of the domestic market, the domestic market has been facing a period of slowdown, primarily due to macroeconomic factor. We have observed muted capital expenditure from the both private and government sectors, particularly in the post-election period and we anticipate that this trend could extend further in the near-term. Despite these challenges, we must continue — continue to be a preferred brand among customers, driven by our superior product offering and longstanding customer relationship. We are confident of creating our presence in the domestic market and held having recently onboarded experience seasoned industry professionals, bringing valuable expertise that will help us drive growth and increase our market penetration gaining from unorganized players. Especially, we are seeing very good demand in the power sector of our pipes and tube business. Additionally, the finance 2025 emphasis on increasing domestic consumption is expected to stimulate economic activity, leading to a revival in capital expenditure. The government’s focus on infrastructure development and manufacturing sector growth will likely boost demand for high-quality piping solutions while representing significant opportunities for winners in the coming quarters. We continue to secure approval in both domestic and export market across industries such as oil and gas, power and engineering, reflecting the strong trust in the quality of our projects. And these approvals not only reinforce our market credibility, but also enable us to diversify across multiple industries, further strengthening our growth prospect. Moving forward, I would like now like to spend some time on our vision for the future. As we continue to expand and evolve, our focus remains on long-term growth and leadership in the stainless steel pipes and tube industry. We are committed to strengthening our market position and delivering value to all stakeholders. With the roadmap for expansion and innovation, we are actively investing in increasing our capabilities and enhancing our product offering. This journey began a few years ago with the strategic capacity expansion of more than 3x, allowing us to not only broaden our product portfolio, but we also backward integrated ourselves with addition of PSE 9 for manufacturing of bars called seamless pipes. We achieved a strong capacity utilization for both seamless and pipes on the back of growing export and domestic penetration. As part of our — as part of our vision for sustained growth, we have announced capex to diversify into value-added products by introducing fitting and high-grade tubes, positioning agent one-stop piping solutions provider for our customers. This move not only enhance our product offering, but also strengthen our ability to serve a wider range of application across industries. In coming years, we are looking to push boundaries of innovation and manufacturing excellence by expanding into high-grade pipes and tubes products that are technically complex require advanced equipment and industries industry. Securing approval for this sector is an intricant and highly process demanding residious quality standards and compliances. However, with our deep industry expertise, experienced team and longstanding customer relationships, we will be in position to penetrate and establish a strong presence in these high-value segments., our growth strategy remains clear with continuous innovation, expansion and market leadership with a strong foundation in-place and unwavering commitment to quality and customer satisfaction. We are confident in our ability to achieve our long-term vision and create fasting — lasting value of our stakeholders. So our order book remains strong at approximately INR350 crores, reflecting the continued trust and confidence of our customers. Lastly, an update on the capex front, Phase-1 of the announced capex, which includes steel and tubes of 3,600 metric ton per annum and fitting was initially set to commence in operation in March 2025, while the external steel and Titanium project remains on-schedule, how the fitting segment is expected to commence in the H1 of the FY ’26. Meanwhile, the Phase-2 expansion of adding 4,000 metric tons per annum of seamless pipe and tube remains on-track to begin operation in December 2025. So please note we have an important addition to Phase-2 capex. We will be — we will be enhancing our existing Phase 29 capacity to the tune of additional 4,800 metric tons per annum, which will serve the capacity, which will serve the capacity increase in the seamless pipe in. With steady growth in both domestic and export markets, strategic capacity expansion and a strong focus on high-value products, we are well-positioned for sustained success. Our ongoing capex project will further create a strong our market leadership and enhance our product offering. Backed by a robust team and operational excellence and the commitment to quality, we remain confident in driving long-term value for our all stakeholders. With this, I hand over to Mr Ugna, our CFO.
Kunal Bubna — Chief Financial Officer
We are pleased to share that our company has delivered a steady performance, achieving growth across key financial metrics, including revenue, EBITDA and PAT. On revenue front, revenue from operation for Q3 FY ’25 stood at INR231.3 crore as compared to INR207.1 crore during Q3 FY ’25, achieving a growth of 11.7% year-on-year basis. Revenue for nine months FY ’25 stood at INR700.4 crore, witnessing a strong growth of 21.2% and we have witnessed a strong volume growth of 20% across welded and side. Revenue for the quarter was 39% from, 54% from side and 7% from others. For Nine-Month FY ’25, revenue bifurcation was 37% from welded pipe, 56% from similar pipe and 7% from others. Revenue from other category increased this quarter driven by sales from scrap and trading revenue from fittings. Growth in similar segment was 8% on year-on-year basis and segment registered a growth of 4% for Q3 FY ’25 on year-on-year basis in terms of revenue. Growth in the segment was 17% on year-on-year basis and segment registered a growth of 16% for nine months FY ’25 on year-on-year basis in terms of revenue. On the EBITDA front, our EBITDA for the quarter stood at INR37.2 crore as compared to INR39.1 crore in Q3 FY ’24. EBITDA margin for the quarter stood at 16.1%. On nine months FY ’25 basis, EBITDA saw a growth of 24.4% standing at INR126 crores with a margin at 18%. PAT for the Q3 FY ’25 is INR18 crore compared to INR23.3 crore in Q3 FY ’24 and margin stood at 7.8%. On Nine-Month FY ’25 basis, PET shows growth of 13.6% standing at INR69.2 crores, a growth of 13.6% with a margin at 9.9%. Lastly, the company has received additional INR8.16 stores in February from holders of convertible wallet in accordance with the terms of preferential allotment, taking the total amount received till-date to INR35.06 crores. In closing, we are optimistic about the journey ahead and fully committed to driving sustained growth. We are excited to push forward and deliver the units sittingly benchmark in this industry. With this, I would like to open the floor for Q&A.
Questions and Answers:
Operator
Thank you very much. Thank you. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to withdraw yourself from the question queue you may press star and 2 participants are requested to use handset while asking a question. Ladies and gentlemen we’ll wait for a moment while the question queue assembles.First question is from the line of Nehar Talreja from Nuvama. Please go-ahead.
Sneha Talreja
Good evening, sir, and thanks a lot for the opportunity. Just a couple of questions from my end. We have seen sudden domestic demand slowdown. Could you mention the reasons we understand the export share is increasing? Why has domestic demand slowed down? That’s one and why has margins fallen to about 16 odd percent? That’s the first one.
Kunal Bubna
Primarily, yeah, if you see from the margin perspective, so because of the domestic subdue demand, there has been pressure on that side and also inflation must be felt into kind of export from the some few more people into export directly. And also if you see in this quarter, we have exported pipes and tube which form around 38% of the total export value on the side of welded, which was earlier on a very lower side in the last year-on year quarter.
So on the side of welded also, we have developed new geography like Middle-East, Africa and also a portion of it has gone to USA, wherein at the initial level, we had been quite competitive as compared to content those markets. And on the side of domestic, there had been subdued demand we have seen across many of the industry, but recently what we are seeing, there is some amount of traction on the side of power side, where many of the tenders are recently being started to floated, which you see there — because of that, this seems to be demand going-forward on that side.
Sneha Talreja
And given pricing is also very volatile along with certain margin volatility, would you like to give some guidance on the growth going-forward?
Kunal Bubna
Yeah. For the coming quarter, we believe it should be around in the revenue side, we believe it should be at least 7% of this quarter revenue what we have achieved that going for three years down the line by FY ’27, we still believe there should be a growth of — CAGR growth of more than 20%.
Sneha Talreja
And margin?
Kunal Bubna
Margin on a till FY ’27 still mix, it should hold more than 20%, but coming quarters, I believe it should be in the same level which have been achieving this quarter.
Sneha Talreja
Could you also give the volume numbers like you mentioned, of course, the volume was 10% odd for this particular quarter, can we get seamless as well as welded volumes? Like how much would have seamless grown versus welders just to understand the product mix?
Kunal Bubna
Yes. Yeah, for the quarter if you see it was on the side of things more than 15% growth and on the side of, it was around 5% growth.
Sneha Talreja
Understood. Let me get back. Thanks. Thanks,, and all the best.
Operator
Thank you. Before we move to the next question, a reminder to the participants to ask a question, you may press star and one. Next question is from the line of Vimuk Shah from Labdi Fintech Private Limited. Please go-ahead.
Unidentified Participant
Yeah. Thank you for the opportunity, sir. My question is like as a company is expanding in Europe, US, Middle-East, as you mentioned, right. So can you provide details on the specific strategies for each of these regions, including the timelines for achieving the market penetration and the NSPC growth targets for these.
Arun Kothari
Especially for the — if you say in the Europe market, already has a very good presence. We are doing exports in the last four to five quarters or every our export is increasing. Same way in the US market also. In the last quarter, we had created a very good presence. We are — in-going forward, we are also peneting for some other geography also, so which will also come in the — mostly our presence has already created or which will grow in the coming two to 3/4.
So Europe is already — you can see very good penetration of the winners in Europe market as well as in the US also, we had created a penetration. Now we have the more focus on the US and Africa market. So in next two to 3/4, we will get the good volume from these two places.
Unidentified Participant
Okay, okay. And another question is as company has increased its market-share in less pipes, right? So what are the steps being taken to further increase market-share in seamless pipes and pipes?
Kunal Bubna
See, as you said, we are working on many multiple geographies across the world and also in many of the sectors across the country. And so those steps are being taken. And as we said, we are getting approval from engineering, oil and gas and these sectors and as we see the market going-forward, Middle-East, US and Africa and African countries. So — and we see many opportunity going-forward and also we are seeing demand from power side to these all geographies, sectors will help us to grow — improve our volume going-forward.
Unidentified Participant
Okay. Thank you.
Operator
Thank you. Participant to join the question queue you may press star N1. Next question is from the line of Jain from Ambit Capital. Please go-ahead.
Dhruv Jain
Hi, sir. I had a couple of questions. One is that it’s been a trend in the last quarter as well, but we’ve seen a quite sharp uptick in employee cost, right? So it’s close to about 12% of sales now. So just wanted to understand how does this stabilize going-forward or this will keep on inching up as we move forward.
Arun Kothari
Since Drew already we had told you we are in already planned the capex for the new high-grade development of the project. So for their purpose, we have some marketing profession as well as some also as the operational also. So all these marketing professional technical will be coming in the coming quarters and because all the things will be coming in the next one or two quarters. So that’s why cost segment increase.
Dhruv Jain
So sir, is it safe to say that this cost will remain elevated for the next couple of quarters?
Kunal Bubna
Yeah, but if you see it is around 4.5%, we believe it can go a bit better to around 5% sort of number or slightly more than size in coming quarters now to that levels.
Dhruv Jain
You’re talking about 5% of revenue?
Kunal Bubna
Total yeah, of revenue.
Dhruv Jain
Okay. And similarly, even I think other expenses has kind of zoomed. So I think sir mentioned about it, but how should that trend going-forward?
Kunal Bubna
So if you see total, it is around 15.8% and we believe it can also slightly higher because The entire backward integration at their facility is working apart from that, when you export there are ocean freight and others which are slightly high on that side as compared to the domestic debt cost. But we believe sort of 16.8% can go up to 17.8%, 17.5%, something near to that.
Dhruv Jain
So sir, is it safe to say for the next couple of quarters, you mentioned about the next quarter, but assuming that, say, if the capex scenario remains sort of muted, we will be in the same sort of number in terms of margins, 16% 17%.
Kunal Bubna
Yes.
Arun Kothari
Especially, Mr Dhru, we are — what we are seeing, there is very good demand may come in the coming one or two quarters from the power sector in India. Water power project has been announced by the Government of India will already started — capex has already started. If these orders will start to flow, they will definitely improving the margin as well as some of the government very good initiatives, at least in our sector from making that concept from BIS.
Secondly, Government of India has announced one new BIS quality order for the pipes and pures. This will be implemented by 1st of August 2025. This will also give very good boom to all the estimated pipes company in India. So we are seeing definitely there will be margin improvement, but at least for this quarter, we are foresee from next quarter, definitely margin improvement will be there.
Dhruv Jain
Sure. And sir, could you just spell out what is your order book for whatever order book that you have at this point of time?
Arun Kothari
I know where the almost INR350 crore order book. We can say almost near about four months order book.
Kunal Bubna
This is about four months.
Dhruv Jain
Great. Thank you so much. I’ll come back-in the queue.
Operator
Thank you. Next question is from the line of Damania from Asset Management. Please go-ahead.
Mihir Damania
Yeah. I hope I’m audible. So my first question is you’ve seen the bulk of our growth coming in this quarter from the other segment, which is basically the, segment. So there are two questions to it. What does the other segments include and what’s driving this disposed amount of growth in the other segment and how do you see that trading forward?
Kunal Bubna
Can you be a bit loud, I was unable to take your question.
Mihir Damania
Is this better now?
Kunal Bubna
Yeah, yeah. No, it is.
Mihir Damania
Yeah. So my first question was, we’ve seen the bulk of the growth coming from the other segment, which is the non-seamless and bike segment. So what does the other segment include and what’s driving that? What’s driving the amount of growth in the?
Kunal Bubna
No, basically it’s scrap and primarily fitting sales, which contribute to it. And see 5% to 7% as a general mobility should be in this level should remain this level.
Mihir Damania
Okay. So it will remain in this 5% to 7%
Kunal Bubna
Kind of 7% to 10%. Yeah.
Mihir Damania
Got it. And my second question is, fundamentally, when you look at it, exports have been a much higher-margin product like around 300 to 100 basis-points better than what you could source domestically. Such a dramatic increase in contribution from export should ideally have led to much higher gross, much higher EBITDA margin. So can you explain the divergence between where the margins have kind of settled and like the higher proportion of export should probably have led to like 18%, 19% EBITDA margins versus what you currently reported. So can you give a clarity color?
Kunal Bubna
Yeah, generally — generally see the domestic direct sale and export have generally a similar margin, but as you said that when you increase your volume when you establish in this market, you tend to get higher-margin on those products. But if you see on the side of that many of the geographies we are trying to penetrate where we were not in the bulk or in a volumeless nature that a geography like Middle-East, Africa and USA, we are penetrating at a level. So therein the margins have been at a lower level. But we believe as and when with a few more supply to those geographies, we will be there and I think going-forward then we will be able to achieve a higher EBITDA margin as compared to what we are in domestic.
Mihir Damania
Okay. Got it. Thank you and all the best.
Operator
Thank you. All participants, if you wish to join the question queue, you may press star L1. Next question is from the line of Romil Jain from PMS. Please proceed.
Romil Jain
Yes. Hello. Yeah, thanks for the opportunity. Sir, one question on the — on this ongoing tariff war. Just to understand, I think a few days back, we’ve seen a 25% of import duty on any steel or aluminum coming in, right, in US. So how does that affect us as a company or any export from India to US that is one. And also probably is there a possibility where other Asian countries, including China can have some additional dumping in India? How do you see that happening?
Kunal Bubna
So if you see primarily this 25% duty which had been recently by US is already there on the steel product from India. But there were few countries like Canada, Mexico and Brazil and few others who were exempted from this. So primarily they have also come under this need. So from the India perspective, it is — it will be adding more.
Romil Jain
Okay. So you’re saying that on stainless steel pipes, it was already there, so it’s not a big change for us.
Kunal Bubna
Yes.
Romil Jain
Okay. And you don’t see a major impact of dumping as well at this point.
Kunal Bubna
No, not much because in case of, there is anti-dumping video of healthy amount. So we don’t see that in the most to us.
Romil Jain
Okay, okay. And sir, just a clarification to the earlier question, it was a little unclear. We have said that I think you know, our gross margins have still remained resilient because of export contribution increasing. But at the same time, there has been an EBITDA level impact. So — and I think we mentioned that it is going to continue. So just want to understand the reason it was not very clear. Can you just repeat that, sir?
Kunal Bubna
No — we were telling from the perspective from the side of, we have been quite competitive while exporting to those geographies where we have exported in the last quarter. So the prices what we would have taken was slightly competitive, so it was on a lower side. So that way the margin and cost also increased on both on the side of salary and other costs. But keeping the market scenario, we were unable to charge those guys on our selling prices. So because of that the EBITDA has been affected.
Romil Jain
Okay. And just a question again on the gross margin. So let’s say, fast forwarding to one, two years from here, when the additional expansions kick-in and when the fittings also kick-in, as well as the domestic market also improves, what is a band of gross margins that we see from here with all these changes coming in? Which be the band of gross margin of.
Kunal Bubna
RM consumption percentage will be in the range of 66% to 68% sort of.
Romil Jain
Sorry, how much are 60?
Kunal Bubna
66% to.
Arun Kothari
66% to 68%.
Romil Jain
Okay. Okay.
Kunal Bubna
So that’s very — again, that will depend on a few of the product mix and all and on the ballpark number I’m just indicating.
Romil Jain
Yeah, yeah. Okay, okay. And sir, last question, if you can just give us some sense on what kind of cash flows did we see in so-far in the nine months operating cash-flow?
Kunal Bubna
Yeah, it was there similar to what was there to slightly increase what we had achieved in September for the half year ended.
Romil Jain
Okay. So from there, it has increased a little, right?
Kunal Bubna
A little. Yeah.
Romil Jain
Okay. Okay. Okay. Thanks. I’ll come back-in the queue for any further questions. Thanks.
Operator
Thank you. Next question is from the line of Ashif Burde from DAM Capital. Please go-ahead.
Aasim Bharde
Yeah. Hi, Arun. Hi, Kunal. Good evening. Sir, just one clarification I wanted on the exports bid that you spoke about that the welded portion was higher and at competitive prices, so that hurt our overall margins. But in the overall mix was welded far higher versus what it normally is or was welded still a small part of the overall export mix?
Arun Kothari
Of overall export?
Kunal Bubna
Yeah, melted was high on the overall export also.
Aasim Bharde
Sorry, was it high or was it like a nominal amount since you’re testing out new markets? Sorry, I didn’t get what you said.
Kunal Bubna
Yeah. In a totality term also the was high. Out-of-the total export of INR89 crore, you can say around more than 35% was on the side of, which used to be very low in the previous quarter.
Aasim Bharde
Okay. And is it to multiple different countries or is it more concentrate to the Middle-East and some part of Africa?
Kunal Bubna
No, it was definitely more towards US, but again Middle-East and Africa was also funding a good chunk of it.
Aasim Bharde
Okay, okay.
Kunal Bubna
And in case of more towards European countries.
Aasim Bharde
On — okay, got it. But I am assuming at least on the European seamless bit, we don’t need to be like open-minded on margins, right? It’s just a US/Middle East thing. And I’m assuming it will Not be a persistent or other longer-term thing, it might get resolved in a quarter or two once you’re making crores?
Kunal Bubna
Absolutely, absolutely.
Aasim Bharde
Okay. Second, again, another clarification. So you mentioned that you are going to add piercing back-end capacity. Will that also come online on the side when your Phase-2 seamless capacity comes online in December of this year?
Kunal Bubna
Yeah, that is the whole target of that.
Aasim Bharde
Okay, okay. And finally, just now this is quite a more medium-term question. So on the 20% revenue CAGR aim or aspiration that you’re talking about and taking margins back from 16% to odd 20 odd percent, but will your mix still be at the same current range where, 50% 55% is seamless, 37% 40% odd is welded. Will this mix also start to change? And basically just wanted to understand then how will that 20% margin — how will the roadmap from 16% to 20% EBITDA margin actually happen?
Kunal Bubna
No, from a margin perspective, it’s not 20%. On the value perspective, we are tending this should be more than 20% EBITDA growth, if I compare FY ’24 with FY ’27. But on a margin perspective, definitely from this level, sweeping one to quarter we know those quarters coming quarters, then we believe definitely the margin will improve because as we said the pipe, which is expected to come by March, it will start drive — giving the results. We will be moving towards more towards value-added products in a few more quarters to come.
And again, pitting business is also will come into the play, which will also help as a comprehensive piping solution to the end-customer. So we believe keeping all this perspective, it should help us improve the margins.
Aasim Bharde
But is the margin profile of this particular category or rather whatever the capex that is coming in March is so high because the overall, I think the addition just cannot be.
Kunal Bubna
It will be absolutely not very-high. It will be high, but not very-high. But again, a few other capex as you said, which is coming by September, Q by December. And again, as we said, we are penetrating in export side. So those penetration should be done and we should able to get a quite a good prices going-forward also.
Aasim Bharde
Okay, okay. And is any role for fittings also on the margin improvement bit or will that just be a smaller nominal part in the overall scheme of things?
Kunal Bubna
No margin, it will be similar to sort of this number — sort of numbers, it will not have to increase the margin, but going down the line because it’s again a fully approval driven business wherein when we get an explicit approval for these fittings and all to them from the end-customer, post that definitely we can improve the margins there also.
Aasim Bharde
Got it. Okay. Thank you very much.
Operator
Thank you. Thank you participants, if you want to ask a question, you may press R one hi. The next question is from the line of Arpit Agarwal from Electrum Portfolio. Please go-ahead.
Arpit Agrawal
Yeah. Thank you. Thank you so much for taking my question. So sir, first on a follow-up on what will be last. I just want to clarify, you are saying that the duty of 25% is similar on all your products across — across the range to the exports to US, right? It is already 25% and there is no change.
Kunal Bubna
Yes, on the side of welded what we currently export to US same remains the same. It was earlier also and now also.
Arpit Agrawal
So you only do welded to US and that is — that is why I think there is an antidumping duty from that.
Kunal Bubna
Section, it’s a different section duty, not known by the name of anti-dumping, something other types, but it remains the same for us.
Arpit Agrawal
Okay.
Kunal Bubna
But as I said, there were few countries like Canada, Mexico, Brazil, they were getting exemption from that. And again in case of what we — whatever has increased from 7%, 8% to 20% 25%.
Arpit Agrawal
Correct, correct. Okay. Fair enough. And sir, I just want to understand the competitive intensity. So obviously, you’re expanding on other products and our domestic market is very slow. So how is the competitive intensity in India? And so if you can just map out the kind of expansion which have come in the industry, is it more there because with the slowdown? Is it putting pressure on the volumes?
Arun Kothari
Definitely.
Kunal Bubna
Yeah.
Arun Kothari
Definitely competition is coming. But with the just out Venus focus is the solution of the old type of stainless steel pipes. This includes seamless pipe, LSO pipe, then welded pipe, then we are going the Titanium tubes, high-end tubes, then further we are creating a very good presence in high-end quality products. So in this all the segment in India or also what we are very limited place is available.
For water coming — that coming in the segment-wise competition, not that much of volume. Our complete our campus will be at a single-location. So customer get benefited from the single-location benefit. So every customer requires the all-time relative price, so they can get benefited. Also any new company comes, if existing play will expand the capacity, definitely it will impact the pressure on our business. But if new players come, so any new players whole join the pipe will require quite good time to penetrate in the market, to create the business in the market. So almost all the business is driven by the approved waste business.
Arpit Agrawal
Right. So I’m just — that’s what I just wanted to understand that in the competition, the existing player, is there a significant expansion coming down?
Arun Kothari
No, no, no, nothing, not from the existing player. We are not foreseeing any significant expansion from existing players. Some of the new players is coming, but definitely it will take time to penetrate in the market.
Arpit Agrawal
Okay. And sir, third, just wanted to check on the — just want an update on the expansion. I think the Phase-1 is supposed to get completed in March ’25. So are we on-track in the some?
Arun Kothari
Yeah, almost capacity on the Phase-1 will be commissioned by this quarter or remaining some parcel capacity will be operation by H1 of the FY ’26. Our remaining Phase-2 expansion is already on-trade. That will come by the December 2025 as we had committed earlier.
Arpit Agrawal
Perfect, sir. Thank you. That’s it from my side. Thank you so much.
Operator
Thank you. For all participants, you may press star and one to ask a question. Next question is from the line of Vijal Jitendra Shah from RTL Investments. Please go-ahead.
Bijal Jitendra Shah
Yeah. Hi, thanks for the opportunity and I have only one question., you mentioned that you will see some increase in employee cost as a percentage of revenue and maybe that other expenses will also go up. So I understand in the longer-term, you’re talking about better margins. But in the — in Q4 and probably Q1, can we see contraction of margin from current levels or you will be able to maintain margins at current levels at least?
Kunal Bubna
So what we see currently we should be able to maintain this margin?
Bijal Jitendra Shah
Okay, okay. Thank you very much and all the best, sir.
Kunal Bubna
Thank you.
Operator
Thank you. Before we move to the next question, a reminder to the participants to ask a question, you may press star N1. Next question is from the line of Rahul Mishra, an Individual Investor. Please proceed.
Unidentified Participant
Thanks for the opportunity, sir. I wanted to know the growth guidance for revenue for — and top-line — top-line and bottom-line for the coming quarter and for FY ’26. So what’s your growth guidance, sir?
Kunal Bubna
Yeah. For the coming quarter, we believe it should be around 10% should be for the coming quarter and for the coming year, we believe it should be more than 20%.
Unidentified Participant
Okay. Okay. Thank you, sir.
Operator
Thank you. Thank you. Ladies and gentlemen, due to time constraint, we will take this as the last question for the day. I would now like to hand the conference over to the management for the closing comments.
Arun Kothari
Thank you. Thank you. Thank you, everyone. I take this opportunity to thank everyone for joining the call. We will keep updating the investor community on regular basis for the incremental updates on your company. I hope we have been able to address all of the queries for any further information currently get-in touch with our SGA, our Investor Relation Advisors request all of you to thank you once again. Good evening, everyone.
Operator
Thank you. On behalf of Ambit Capital, that concludes this conference. Thank you all for joining us and you may now disconnect your lines