Venus Pipes & Tubes Ltd (NSE: VENUSPIPES) Q4 2025 Earnings Call dated May. 26, 2025
Corporate Participants:
Unidentified Speaker
Arun Kothari — Managing Director
Kunal Bubna — Chief Financial Officer
Analysts:
Unidentified Participant
Dhruv Jain — Analyst
Amit Kumar — Analyst
Radha Agarwalla — Analyst
Parth Bhavsar — Analyst
Sneha Talreja — Analyst
Pallav Agarwal — Analyst
Mihir Damania — Analyst
Ritesh Shah — Analyst
Hina Vora — Analyst
Sudhir — Analyst
Presentation:
operator
Sat. Foreign. Ladies and gentlemen, we welcome you all to the Q4 and FY25 earnings conference call of Venus Pipes and Tubes Ltd. Hosted by Ambit Capital. This conference call may contain forward looking statements about the company which are based on the beliefs, opinions and expectations of the company as on date of this. These statements are not guarantees of future performance and 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 your Touchstone phone.
Please note that 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
Thank you. Good evening everyone. On behalf of Ambit Capital, I welcome you all to the fourth quarter and FY25 earnings call of Venus Pipes and Tubes Limited. Today we have with us from the management side Mr. Arun Kothari, Managing Director, Mr. Dhruv Patel, Whole Time Director and Mr. Kunal Bhubna, CFO of the company. We will have the opening remarks from the management initially and after that we’ll have a Q and A session.
Thank you. And over to you. Arun S.
Arun Kothari — Managing Director
Good evening and warm welcome to everyone on the Q4 and FY25 earning call for Venus Pipes and Tubes Limited. I have been joined by Mr. Kunal Bugna, CFO and our IR team and our investigation advisor. We have uploaded our Q4 FY25 investor presentation on stock exchanges and company’s website and I hope you had an opportunity to go through the same. Before we begin, I would like to point out on two important development in the company recently. We are proud to share that we have recently secured a major order worth Rupees 190crores from India’s leading integrated power plant equipment manufacturer.
The order is for stainless steel seamless boiler tubes to be used in the series of supercritical and subcritical thermal power projects. The project is expected to be executed progressively over the next 12 to 15 months. This is a landmark order for the company not only because of its size but also because it reflects our growing technical capabilities. We are confident that with our capabilities and strong execution records we will be able to secure similar large scale orders more frequently in the near future. Secondly, we also achieved a significant milestone with the commencement of operation for 3,600 metric ton per annum of value added welded tubes.
This mark our official entry into the Value added product segments aligned with our long term strategy to diversify our offering and move up the value chain. Now I would like to throw some light on the economy front. The global macro environment continues to navigate a period of uncertainty marked by geopolitical tensions, influencery pressure and shifting trade dynamics. Conflicts in Eastern Europe coupled with strategic realignment of supply chain and DE globalization is picking up pace led by the United States have contributed to a fragmented global trade environment. While GDP growth in advanced economy has moderated. There are sign of stabilization as inflation eases and monetary policy gradually normalize.
India to witness a slowdown particularly in the first half of the year due to election and muted private sector investment. However, sign of recovery are emerging with leading indicators suggesting a gradual pickup in the industrial activity and infrastructure spending. The Government the government continued focus on manufacturing through the PLI scheme and FTA is expected to support domestic growth in the long long term. As we look ahead in FY26, the outlook remain constantly optimistic dependent on geopolitical stability, consumer confidence and sustained policy support. On the company front, FY25 has been a strong year for us. Our total revenue grew by 19.5% reaching to rupees 958.5 crore compared to 802.2 crores in the FY24.
The growth was mainly driven by steady flow of new orders supported by our efforts to enter into new geography and expand our customer base. We focus on growing our reach across geographies which help us step into fresh demand and strengthen our position. A key highlight for the year has been the sharp rise in our export business. Export revenues grew more than three times from rupees 98.7 crores in FY24 to rupees 338 crores in FY25. Out of this rupees 11, 25 crore came in the fourth quarter alone. Exports made up about 35% of our total revenue for the year.
This strong performance despite global uncertainties shows the growing demand for our products overseas, wider acceptance of our quality and the benefits of expanding our product range. We continue to engage with dealers and build relationships along with increasing brand visibility with initiatives such as participation in trade fairs and other events. Domestic sales continue to face some pressure during the year due to subdued capital expenditures from both the private and government sectors. However, with several new orders winning the domestic market, we remain optimistic about growth in FY26 and beyond. Our confidence is further strengthened by our growing market share, particularly as we continue to gain ground over unorganized players.
Looking at our product segments seamless pipe contributed rupees 543 crores growing by 18% and welded pipe business contributed rupees 350 crores in revenues growing by 12% on a year on year basis. On the volume side we achieved 17% growth with welded pipes growing by 10% and seamless by 25% with overall capacity utilization at approximately 70% on FR25 basis. This indicates healthy demand and leaves room for further growth. With continued focus on expanding market, improving efficiency and offering some more value added products, we are optimistic about maintaining this momentum in FR26. Our industry wise mix continues to remain strong with steady supplies to key customers across sectors such as chemical engineering, pharmaceuticals, food processing and oil and gas.
In addition, we are seeing growing interest from industries that that require a high performance material for critical applications including nuclear, renewable energy, semiconductors, power and others. These sectors offer exciting opportunities for long term growth. Currently our order book stands strong at approximately 575 crores reflecting a healthy pipeline and controls customer service confidence. Now I would like to highlight the some key business initiative undertaken by the company this year. During the year we place strong emphasis on two key areas bringing in experienced talent from the industry and expanding our product portfolio. The recruitment of key manpower is our strategic initiative and strengthen our market position.
Over the past few years we have consistently invested in building a strong team which is reflected in the increase in our manpower force. These investments are intentional and strategic. We firmly believe that the talent we have brought will significantly enhance our capabilities helping us gain market share and drive profitable growth over the long term. On the product portfolio front, we announced a Capex plan in February 2024 to support our next phase of growth. During the year we began the groundwork for this expansion and currently in the process of completing it, we expect to commence commercial production of our value added product portfolio in FY26.
A key part of this expansion includes the addition of fittings which will position us among the select few players in the industry offering comprehensive piping solution. This strategic move will not only strengthen our product offering but also deepen our value proposition for customers across industries. Now moving forward as part of our long term growth strategy, we are on focusing on three key areas to build up our market position and build a more resilient businesses. We are working to establish a deeper relationship with strategic customers in Europe, Middle East, Africa and US Market while also exploring new reasons for growth.
At the same time, our well established domestic presence ensure that we are well positioned to mitigate any global uncertainties. This balance approach between domestic and international market provide us with a strong platform to manage risk and capture growth opportunities globally. We are gathering up to launch a range of value added products including fitting and high grade pipes, tubes and FY26. This will an important milestone in our product strategy and will give us a competitive edge in an industry where differentiation and quality are increasing. Important we are making focused efforts to expand our business in critical industries such as nuclear energy, renewables, power and semiconductors.
This sector have stringent quality and approved standards making it challenging for most players to enter. However, thanks to our strong customer relationship, proven track record and commitment to quality, we are confident in our ability to secure orders and build long term partnership with companies operating in these high value segments. As we reflect on FY25, the year marked a key point in our growth journey driven by strategic investment in product diversification, talent acquisition and market expansion. Despite global and domestic challenges, we deliver robust performance, enter high potential sector and laid the foundation for our next phase of growth.
With a sharp focus on value added products, deeper penetration into critical industries and expanding presence across global markets, we are well positioned to build on this momentum. The recent order wins and our growing capability give us strong confidence as we look ahead. As we enter FY26, we do show with cautious optimism a clear strategic direction and a commitment to delivering long term sustainable value for all stakeholders.
With this I I hand over to Mr. Kunal, our CFO for financial highlights for FY25.
Kunal Bubna — Chief Financial Officer
Good evening everyone. We are pleased to say that our company has delivered a steady and resident performance in Q4 and FY25, achieving growth across all key financial metrics. Revenue better impact despite a challenging external environment. On the revenue performance side, revenue from operation for Q4FY25 stood in rupees 258.1 crore compared to rupees 224.1 crore in Q4FY24 reflecting a 15% year on year growth. For FY25, revenue growth is stronger than 19% reaching rupees 58.5 crore supported by a blended volume growth of 17% across both welded in seamless pipe. Q4 revenue makes 35% from welded pipe, 59 from seamless 5 and 6% from others and FY25 revenue mix was 36 from welded pipe, 57 from seamless and 7% from others.
Segment wise growth Year on year, Seamless segment revenue growth grew by 22% in Q for FY25 and 18% for FY25. Welded segment revenue rose 1% in Q4FY25 and 12% for FY25. On the EBITDA front, EBITDA for Q4FY25 stood at Rupees 41.6 crore compared to Rupees 45 crore in Q4FY24. EBITDA margin for the quarter was 16.1% and also EBITDA for Q3FY25 was 37.13 crores. For FY25, EBITDA grew 14.6% reaching Rs. 167.6 crore with a margin of 17.5%. On the PAD front, PAD for Q4FY25 was 23.7 crore compared to Rupees 25 crore in Q4FY24 with a margin of 9.2% for the full year, PAD grew 8.1% year on year to Rupees 92.9 crore with a margin of 9.7%.
In closing, we are optimistic about the journey ahead and remain fully committed to sustainable profitable growth. With a clear studies in place, ongoing investment in product expansion. With our focus on operational excellence, we are excited to elevate the Venus brand further and set new benchmark the stainless steel pipes industry.
With this I would like to open the floor for Q and A roundup.
Questions and Answers:
operator
Thank you sir. We will now begin with a 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 and 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.
The first question comes from the line of Amit Kumar, an individual investor. Please go ahead.
Amit Kumar
Thank you for the project and congratulations numbers. So I have a question that first question is that our top line is increased by 20% year on year. But our other expenses are increased by 95% and finance cost increased by 56% and employee cost increased by 70%. Y&Y. Could you please throw some light on these?
Kunal Bubna
Yeah. So primarily if you see as we have backward integrated ourselves on the side of singles. So Primarily the entire 100 ton substantial portion of that is fully backward integration in the earlier years where we are not fully backward integrated. Apart from that we have also started manufacturing higher sizes of welded pipe and all.
So if you see in even in the last quarter also it was in the range of more than 60% other expenses and should be taken together. And we have been telling that PVL invested substantial portion of resources towards manpower because this Cost will definitely result in going forward. But if you see on a blended basis, blended and similar other expenses plus implied cost would be in the range of 16 to 18%. Okay, and what is the volume produced in FY25 for both seamless and welded and what is the EBITDA pattern for both of these? We don’t give EBITDA on a individual basis, but on a blended basis it was near to 65 rupees, sort of 64, 65 rupees per kilogram.
And as we said from the last year the volume growth was on a blended basis of 17 and for individual product it was 25% on the side of Syndes and 10% on the side of. Indeed. Is it possible to provide the volume produced in a total basis? It was around 26,000 ton. On a total basis, 26,000 ton. And if you would provide the bifurcation between CMS and vendors, it’s not. We don’t provide a set bifurcation but we are providing with the increase in percentage by 25 and 10. Similar 25 and we’ll get 10%. Okay, and what is the guidance for next two, three financial years in top line and EBITDA? Both top line and EBITDA see on the side of Top Line see the expansion for the value added vended tubes had already been done in the month of May and the other projects are underway and we believe before the end of this March 26th all the project will start.
What we are targeting internally and with all this capacity coming into play, we believe key for each year, FY26 and 27, it should be a growth of on a top line basis around 20%, more than 20% sort of number. And on the side of feedback, on a margin basis, just indicative number, you can take between 16 to 18%.
Amit Kumar
Okay, thank you and all the best.
operator
Thank you. A reminder to all participants, please press star and one to ask a question. The next question comes from the line of Dhruv Jain from Ambit Capital. Please go ahead.
Dhruv Jain
Thank you for the opportunity, sir. So first question was on the domestic business. So you know, while you have done exceptionally well on the export side, I think FY25 in general has been impacted on the domestic side. So just wanted to get your thoughts as to how that turns out in FY26. Right. Are you seeing any green shoots? And if you could also provide us with the order book of the same of the entire next two, three months, four months, whatever data you can find.
Kunal Bubna
If you see group G, probably definitely the domestic direct Been subdued.
That’s why. But it was also a strategy of the part of the company to elevate their export. What we have been telling since starting because we want to diversify across geographies or to keep ourselves restricted to India. So that was the strategy and we succeeded in driving our export. But again want to mention that there was also subdued domestic demand. But recently you must have seen key we have. We have received a substantial amount of domestic order. So which also shows the there and there is a good amount of further demand from power and other sector in the going forward quarter.
Hello. Hello. Hi, you can hear me. So those demands from those sectors are seem to be coming up and a lot of demand. There can be demand from desalination, ETP fluent generation and STP type of plants and all there we are also invisible demand going forward. And if you see from the mix perspective, definitely we have touched around 35 on the side of export and balance on the side of domestic. But we believe this ratio should be should be maintained in the coming year to come. The intent is above 30% on the side of export and all depend how the orders in fly or can increase further.
But depend on the margins and other factors. And on the side of order book it’s roughly 570 crore of order book currently which is more or less split between 40% roughly on the side of export and balance on the side of domestic. So if I trip off the 200 crore worth of order that’s basically 370 crore for the next three or four months, right? If I’m absolutely yes, it will take more than four months sort of. Okay, get the point, get the point. And so your second question was on the capex, right. So obviously FY26 we are going to see a lot of capex coming in from Venus 5.
Just wanted to understand on a blended utilization basis what is the number that you expect to end at the end of FY26 across both. Yeah, definitely on the side of it should be blended basically should be around 80% sort of number what we believe you should be able to achieve. And Primarily more than 85 90% on the side of sameness. So this you’re talking. So if I’m not talking about 42,600 capacity. Right, yes. But those capacity will come in places over a period of time. So that need to be factored into because the entire capacity will not be available on the very start of April 2025.
So I’m taking those under consideration while mentioning my figure.
Dhruv Jain
Okay. Okay, thank you. So much and all the time.
operator
Thank you. A reminder to all participants please press star and one to ask a question. The next question comes from the line of Radha from BNK securities. Please go ahead.
Radha Agarwalla
Thank you for the opportunity. So my first question was with respect to the boiler tubes order of 190crores which is for the supply to thermal power plant. So can there also be an opportunity in future for supplying similar tubes for nuclear and solar power plants? And if yes then we need further customer approvals for separate quality approvals for these products.
Arun Kothari
See we have been supplying to this sector which you are mentioning. But again see there are individual clients who sometimes have their own quality norms. These like ck apart from your current approval you need to be approved by us. So we keep on doing that and we are qualifying for many of the project what you have mentioned. But there are sometimes a specific requirement that need to be approved also. And again on the side of this volatility being and all there are few few further tenders to be placed by by those by those bodies in the recent future where we will again be participating.
And again also we can also win on that front. There is a also.
Radha Agarwalla
So would you by any chance have the bid book for these boiler groups?
Arun Kothari
No, we don’t have because see it’s not come on a. It’s a. They are spending up across quarters and ask every basis but we think it’s a good amount of substantially of the seamless demand of in the coming three three years it should be quite significant one thing.
Radha Agarwalla
And margins would be in the similar range 16 to 18% or higher.
Kunal Bubna
If you take standalone in simbase pipe the margins are higher. But what is the margin what we earn currently it is in the similar margin what we earn for same base. Currencies
Radha Agarwalla
just for this production margins.
Kunal Bubna
Ah. Definitely what we earn for seamless in the same range.
Radha Agarwalla
Okay. And the third is is it mandatory to have Mother Hollow to be able to qualify for supplying these volumes. And in terms of technology piercing versus extrusion is there any customer is there any preference by the customer for being able to supply volatiles?
Kunal Bubna
If you see the preference that can be there by the end customer. But but this order itself proves that key for supplying it a series of super subcritical if they are seen technically accepted that give a good amount of confidence to should give a good amount of Everyone that we are seeing is widely accept accepted in many of the areas. But again sometimes there are few customers who specifically belt on saying that we should not be from piercings should not be from extrusion that can be there.
Radha Agarwalla
And is it mandatory to have mother Hollow? Sir?
Kunal Bubna
Primarily not as a specific we thought but. But I But we believe they generally prefer those people who have Mother Hollow because the entire Venusian can be inspected at that facility.
Radha Agarwalla
Is there any player who is not having mother of Hollow and have won the orders of bolu tube?
Kunal Bubna
Just a minute. Are there in the current order what they what we heard they are generally not his in order he’s not having one.
Radha Agarwalla
Okay. Currently if no mother mother then they’re not approval.
Arun Kothari
Yeah, Generally what I have what we have heard till now.
Radha Agarwalla
Okay, yes, thank you. And all the best.
operator
Thank you. The next question comes from the line of Parth Bhavsar from Investech India. Please go ahead.
Parth Bhavsar
Hi sir. So thank you for the opportunity. A few questions related to exports. Sir, we have done quite well in the last two quarters. So can you highlight you know where are we exporting to and what sort of efforts have we put to you know like have a crack on on exports.
Arun Kothari
So primarily the reason had been which used to be earlier only European country on a predominant basis for the last year it is Europe USA and Middle east and African countries. There’s a mixed bag which is coming from definitely the predominant area is European US and balance are Middle East, African and African countries.
The efforts had been wide open. We had been participating in all the. We have senior people working in many of these geographics where we have been supplying and we have all the many of the SKUs to be offered to the end customers and the quality is up to the standard what they required. These all seek in the mix as I help us to grow our export in all the geographies. Okay, okay, got it sir. And in terms of margins for these products, would it be similar to the domestic business or would it be like lower or higher sort of similar subtype? There are few orders where you had a higher margin also.
But if you see on a blended similar. Okay. And certainly basically I wanted to understand like when we you know do make this like this sale. So do we do it to the directly the end consumer or do we direct it through a dealer distributor? And so basically what sort of channel do we use for. For the exports market Europe and usage to the dealer and distributor only the internal supply to the end industry. Okay. So in Middle east and African countries you directly supply to the end consumer in Middle east and all the approvals are received from the end customer but the supplies are made to the orders are placed by the generally by the epc.
Contractors and there are few cases where it differ also.
Parth Bhavsar
Right, right. I get it. Fair enough. So those are my questions for now. Thank you.
operator
Thank you. A reminder to all participants, you may press star and one to ask a question. The next question comes from the line of Sneha Talreja from Nuvama Wealth Management. Please go ahead.
Sneha Talreja
Hi sir. Good evening and thanks a lot for the opportunity. Just couple of questions from my end. One is on your margin guidance. I am sorry I joined a bit but what I understand is it stands at 16 to 18%. Just wanted to understand couple of things here. This year we probably will have increase in value added product also which you have recently launched. Plus if I look at your current margins or for the entire year as a whole also your margins stood at about 17.5 odd percent. Then what is the reason for margins to at about 16 to 18 odd percent? In case we can get some parity here.
Arun Kothari
You are correct from the perspective few more value added products have been started and few more will be started in coming quarter to come. But again we need to also see the portion of welded will also be increasing which is generally low margin as compared to seamless. So keeping all the factor in mind we believe those margins should be biasing coming forward years.
Sneha Talreja
Understood. And anything that you can talk about the weakness in the welded side, where is it coming from?
Arun Kothari
It’s a mixed bag. First being key, we have not been supplying welded in overseas market which we started over the past few quarters. So a bit of for penetrating those reasons we have been. The margins have been affected. A bit of competition intensity is also there which is also affected. But in going forward years to come because of the value added and more approvals under considerations we believe those margins will improve further.
Sneha Talreja
Understood. And anything on the. I mean anything on the growth forecast front, I don’t know if you’ve actually mentioned it that you know what could be the verdict as there are seamless volume growth for the coming year. Some visibility here
Arun Kothari
on a blended basis we see a growth of around 20% for the coming year.
Sneha Talreja
Thanks. Thanks Kunal and all the best.
Arun Kothari
Thank you.
operator
Thank you. A reminder to all participants, you may press time one to ask a question. The next question comes from the line of Pallav Agarwal from Antique Stock Broking. Please go ahead.
Pallav Agarwal
Yeah, good evening sir. So just a question on you know the domestic competitive intensity. So you know there were some talks of competitors also planning to go into seamless pipes by a couple of companies. So are we seeing any progress on that or you know mostly it takes some time for them to get approvals and start manufacturing seamless pipes.
Arun Kothari
Yeah, definitely. A few of the competition would be coming in, a few are in the process. But again as we always say it’s a approval even design business. So they should. Everybody should be requiring the requisite approval for getting supplying to the end customer or non key customers.
And further we. We as a company are working towards. You can see a value added products which will help us to grow with that. So we are trying and also working on many of the geographies and many of the sectors so that those intensity can be reduced to the maximum possible. What we as a company can do. Sure. And also in terms of. In terms of you know the tariff scenario that is playing out. So is there any advantage for you know from Indian companies with respect to exports compared to some of the other countries like say China or any other exporting countries? Definitely it can be because what we are seeing in case of USA they may be apart is already a good amount of duties are there on China when they export to USA as compared to India.
But then if it is further increased definitely we believe it should help. But again those scenarios are not very clear because it’s not changing every day for every week. So it’s up to predict those things currently and also just on you know how you know when do you expect domestic markets to start recovering? You know maybe in a couple of quarters or how long you think it’ll take to recover. If you see this current order book what we have been it’s from a domestic one only show there is improvement or from a company perspective we see those improvement again further few more quotations or etc are missing from the varied number of industry.
So we see those pickup has started and few more demand in those sector in coming forward quarters. So we see there should be coming here should be good from the domestic perspective. So lastly you I know you mentioned what is the capex guidance for FY26 2627. If you can just give us current FY26 it should be around 120 odd crores. Okay. And FY27 will be only maintenance Capex or any growth Capex also there would be some but predominantly maintenance. But again we are working on that. Something more is there will definitely come and update you.
Pallav Agarwal
Okay. Yeah. Thank you so much.
operator
Thank you. Participants please press star and want to ask a question. The next question comes from the line of Mihir Damania from Fident Asset Management. Please go ahead.
Mihir Damania
Yeah. Hi. I hope I’m audible so my One question is considering that we are very close to a new prefix coming on board both on the newer products, the value added pipes and the fittings. Do we have a timeline of how we are looking to execute the newer products? Have we started feeding the newer product to clients? Can you give a bit more color on how far are we in terms of winning newer orders and utilizing these cases?
Arun Kothari
On the side of the current welded value added product, what we have started currently we are definitely working with a number of clients.
So those inspection, those product approvals are already in place. So we as a company are working on that. And it will sooner or later those selling of that will also start. And for the newer Capex, definitely not any such approval because on the side of Sylvester Tuting, we already we are currently also supplying to them many of them. But again when you add a capacity, we try to observe those high value added product more in the system. Those approval for on the side of things is already in place and further fittings and all those approvals would be required.
Not much for fitting. We have not as such started any specific approval. As in when we come up near to our start of the project, we will start those things. Okay, got it. So what would you assume that this would take like a couple of two to three years to kind of fully utilize this plan? On the side of similar, we are quite confident we would be able to achieve a greater amount of utilization in the next year. On the side of build it also the substantial portion would be utilized in coming years. In one or two years.
On the side of fitting, definitely those will start. It would take some time. But again 12 year we believe post out of that we will be able to utilize substantial portion of that. Got it. And just one more update. So currently the USA tariffs we are not really impacted by the US because I think we were earlier also. So the earlier tariff for our products still stands. We do not have any incremental duty charged as such. Or is it not the no, you write the times remain the same for India as compared to what it was earlier.
So we as a company or as a country, we are not affected on our product side.
Mihir Damania
Thank you.
operator
Thank you participants, please press star and want to ask a question. The next question comes from the line of Ritesh Shah from Investec India. Please go ahead.
Ritesh Shah
Just one question. Are there any specific approvals for our. Global supplies that we are scouting over. Next 6 to 12 months?
Arun Kothari
Definitely yes. In few of the country in Southeast Asia and others where we are working, there are a few specific approvals. Which are required. We are working for all of them. And it seems Kate will keep on adding those in each quarter to come. And in few of the cases we can directly supply because we have been supplying them. Right. Sir, would it be possible for you.
Ritesh Shah
To basically mention what all specific approvals we are looking for and are there any product process changes that we are already doing or where are we on. The process on the approvals with a few names?
Arun Kothari
Giving a specific name is. I think it’s not currently would be right because those are competitive information. But change of process and all are generally not because it’s a process. What we currently follow the process in the same. There can be some testing methodology, there can be some approval methodology or inspection methodology which can change, but not the process which changes with that. It can be change of grades, it can be change of some other things, but not on the process process in the scene. Sure. And sir, last question.
Ritesh Shah
The guidance that you have indicated, is it contingent to any of these approvals? I would presume no.
Arun Kothari
Definitely not. As such, we. We work on many of other approvals and we are also. It is not credential on that.
Ritesh Shah
Sure. Thank you so much. All the very best. Thank you.
Arun Kothari
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 Hina Vora from Dam Capital. Please go ahead.
Hina Vora
Hi sir, good evening. Thank you for the opportunity. So my question was around the welded piece. Basically just a clarification. You mentioned that the weakness this year was because of course, domestic being weak, domestic demand competition coming up and also some sort of delay in approvals.
Arun Kothari
Can you repeat? I am unable to get you.
Hina Vora
Yeah, sorry. Just so my question was around the welded piece. So just wanted a clarification. Earlier you mentioned that the weak volume growth that we saw this year was because of weak domestic demand, rise in competition and also some delay in approval.
Arun Kothari
Not delay in approval, I said. We said it was more on the side of penetration in the new geographies. We were not there earlier.
Hina Vora
Okay. Okay. So just wanted to understand for the year to come, is there an export angle to this in case, you know, domestic takes a few more quarters to revise.
Arun Kothari
See, we currently have around. If you see the annual, it was around 35% on the export side. So. And we currently have a order book also near to that or more than that. So we believe we will be able to continue like that. And again, if there are a slowdown in domestic demand further, we will take a. Definitely we’ll try to Increase our piece on the side of export. But again as we said we already have a good domestic order book also keeping this new order in hand. So you should able to maintain the guidance what we are currently saying to you all.
Hina Vora
Okay, understood. Sure sir. Yeah, that was the only question. Thank you.
operator
Thank you. Participants, you may press time. Want to ask a question? The next question comes from the line of Parth Bhavsar from Investech India. Please go ahead.
Parth Bhavsar
Hi sir. So I had a question more on you know, what our future holds. Basically you know we’ve. We are making an effort to you know move towards value added products and add more and more grades into our you know, kitty. But you know beyond stainless steel and you know fittings like do we have any, you know any product in mind that we would want to you know foray into like post maybe maybe two or three years down the line. Considering that there’s a lot of competition as well in the, in the, in the stainless steel segment both in seamless and welded
Arun Kothari
see primarily as a company with the team which keep on working on other value added and other products which we can add in our kitty.
But again these all workings are along with the current expansion what is going on. But as and when we come up with a specific plans or when you internally finalize those definitely will come in tell us. But we definitely as a company keep on working on that.
Parth Bhavsar
Okay, fair enough sir. So that was my question sir. Thank 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 Radha from B and K securities. Please go ahead.
Radha Agarwalla
Thank you again. So my question was that the welded value added products. So are there any other players who are making this product in the Indian market And what is the margin delta in these products when we compare to the. Compared to the stainless steel welded production.
Arun Kothari
Yeah, there are I think a few of the manufactured in the countries. I think it can be more than 23 manufacturer who are manufacturing that in the country. And the margin data generally as and when you get those requisite approvals it vary. It can vary to a certain extent or it can be 2% higher 3%. It can be sort of battering 2 to 5% we can say. But after you get those requisite approval and all those letters are available to you 2 to 5% higher margin on the selling price. Yeah.
Radha Agarwalla
If you see the whole company you mentioned.
Arun Kothari
No, no, I’m saying for that specific product. No, no, for that specific product I am saying. Yeah,
Radha Agarwalla
yes, yes. So currently As a company we are doing 1718. So just for this specific product would this product alone would have 2 to 5% higher margins. That would mean 20 to 23%.
Arun Kothari
No, no, no. It can’t be because it’s only 300 ton capacity what we are coming up with. And the capacity utilization will also vary this current year and next year. So it can’t argue. But for example in hypothetical example I’m. Taking
Radha Agarwalla
Yes sir, optimum utilization.
Arun Kothari
But again it is 310 out of my total capacity of 2300 ton. So again it will not increase the total percentage in that way. And again it’s all depend when you get those approvals and all when you are qualifying that then you try to on those higher delta by selling to them.
Radha Agarwalla
So who are the two three other manufacturers?
Arun Kothari
Ratnamani and other. Ratnamani is doing that.
Radha Agarwalla
Okay. Any plans you have in future to backward integrate into.
Arun Kothari
What?
Radha Agarwalla
Is there any plan to backward integrate into Chennai field bars?
Arun Kothari
Not currently we have any such plant. But if something is there or if we finalize something differently, let you know.
Radha Agarwalla
Okay, thank you.
operator
Thank you. Ladies and gentlemen, due to time constraints we’ll take the last question from the line of Sudhir, an individual investor. Please go ahead.
Sudhir
Thank you for the opportunity. Sir, I have only one question. What is the realization of stainless steel per ton for Venus pipe? Hello, Am I audible?
Arun Kothari
Can you repeat?
Sudhir
What is the realization of stainless steel per ton for Venus pipe
Kunal Bubna
on a blended basis? It was around 340. More than 340 rupees per kg excluding other sales. Sorry, come again. 340 rupees per kg excluding other Sales on a blended basis.
Sudhir
Okay, thank you. Thank you sir. Thanks.
operator
Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to the management for the closing remarks.
Dhruv Jain
I take this opportunity to thank everyone for joining the call. We will keep updating the investor community on regular basis for incremental update on your company. I hope we have been able to address all your queries. For any further information, kindly contact Strategic Growth Advisor, the investor relation advisor for our company. Thank you once again.
operator
Thank you, sir. Ladies and gentlemen, on behalf of Ambit Capital Private Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.