JTL Industries Ltd

NSE:JTLIND

Earnings Call Analysis

Earnings Call Transcript 2025-Q1

[Operator]

Ladies and gentlemen, good day, and welcome to the JTL Industries Q1 FY '25 Conference Call, hosted by Nuvama Wealth Management. [Operator Instructions]

I now hand the conference over to Mr. Souvik Mohanty from Nuvama Wealth Management. Thank you, and over to you, sir.

[Souvik Mohanty, analyst]

Thank you, Sagar. Good morning, all. We welcome you all to the JTL Q1 FY '25 conference call. We are joined today by the senior management of JTL Industries, represented by Mr. Atul Garg, CFO; Mr. Pranav Singla, Whole-Time Director; and Mr. Dhruv Singla, Whole-Time Director. We will now start with the opening remarks by the management, followed by the Q&A.

I would now like to hand over this call to Mr. Pranav Singla for his brief opening remarks. Over to you, Pranav.

[Pranav Singla, executive]

Good evening, everybody. Thanks, Souvik, and thanks, Nuvama for hosting the call for us. And thank you, everybody, for joining us today. I am delighted to welcome you all to the JTL Industries earnings conference call. We will be discussing our financial performance for the quarter 1 of financial year '25 as well as providing an overview of our ongoing capacity expansion.

Before we delve into the details of our results, let me briefly provide you introduction of the company. With three decades of experience, JTL Industries has grown into a rapidly expanding reputable player in steel tube manufacturing. Our product range includes ERW black steel tubes, galvanized pipes, large diameter steel tubes and pipes, solar structures and hollow construction materials. We specialize in producing VAP products like galvanized pipes, which ensure superior quality standards and impeccable finishing across all our offerings.

JTL operates 5 cutting-edge manufacturing facilities across India, located pan-India in such a way that 3 of the plants are in Punjab, 1 in Maharashtra and 1 in Raipur. We recently did a takeover of 70% stake in Nabha Steel company, which is also located in Punjab as well.

In June '24, we successfully launched the first phase of Nabha Steel Limited, achieving figures of 10,000 tonnes. This milestone has a significant step in JTL's backward integration strategy, enhancing our product portfolio and positioning us as one of the top solutions providers. The integration is expected to improve yield, generate synergies and boost profitability.

In Q1 of FY '25, JTL Industries delivered a stable financial results, demonstrating sustained growth year-over-year. Our revenue for the quarter reached INR 5,153 million, up from INR 5,050 million last year, driven by strategic market expansion, increased product demand, higher sales volume and enhanced product offerings.

EBITDA for quarter 1 FY '25 stood at INR 438 million, reflecting a 21% increase from quarter 1 FY '24, underscoring our efficient cost management and operational excellence. The EBITDA margin improved to 8.5% in quarter 1 FY '25, up from 7.2% in quarter 1 FY '24, driven by strategic focus on higher-margin products and increase in scale.

Sales volume grew by 10% year-on-year, reaching 85,674 metric tonnes in Q1 FY '25, compared to 77,342 metric tonne in quarter 1 FY '24. Notably, VAP products contributed 25% of total sales mix, with sales volumes of 21,261 metric tonnes. Quarterly exports stood at all-time high at 7%. And the total loss of sales were 5,917 metric tonne.

I'm open to questions.

[Operator]

[Operator Instructions] Our first question is from the line of Parth Kotak from Alpha Plus Capital.

[Parth Kotak, analyst]

Congrats for a decent set of results. So I just wanted to get an update on Nabha Steel. We are manufacturing HR coils over here, which will be used for backward integration. So some 10,000-odd metric tonnes of sales that we've received is not the sales volume, right? It's just the volume that you're using for our backward integration.

[Pranav Singla, executive]

So what the process over there is -- thanks for the question, first of all. So right now Nabha is in a phase, which is not currently making the exact product the steel required at JTL. It is about a quarter away from the product that we require at JTL. The product that we are delivering at Nabha right now is sellable in the market right now. That's what we did this quarter.

And being it a partnership firm as of now. So the top line and the volumes couldn't be added to JTL this time. It's in the process of becoming to a limited company, which will happen this quarter. And accordingly, everything will be added to JTL afterwards.

[Parth Kotak, analyst]

Okay. Perfect.

[Pranav Singla, executive]

Later on, it will be making coils, as you mentioned, which will be used for our backward integration. But now we sold everything in the market.

[Parth Kotak, analyst]

Super. Super. I think that's really helpful. And -- so then the revenue that we've generated from Nabha basically has, I think, mentioned in the note is included in other income. Is that the right understanding?

[Pranav Singla, executive]

Only the share of profit to the extent of 70% is what is included in the profit. And -- that's all.

[Parth Kotak, analyst]

Okay. Which would be to the tune of about INR 4-odd crores. So I just wanted to know the contribution that's come from Nabha. Because I'm asking this question primarily because in order to calculate, although you've given the breakup, but EBITDA per tonne, then we don't include either the profitability or the volume from Nabha, right?

[Pranav Singla, executive]

I don't have the exact amount handy with me, but around INR 96 lakhs, INR 97 lakhs was the data of -- the PBT from there.

[Parth Kotak, analyst]

Okay, perfect. Perfect.

[Operator]

Next question is from the line of Bhavesh Chauhan from Aditya Birla Money.

[Bhavesh Chauhan, analyst]

Sir, in terms of channel checks that we did, it seems like the competitive intensity in this pipes industry is increasing because the balance sheets of many of the companies have become stronger. So I would like to know what is your view on that, that most of the companies are targeting 20%, 25% volume growth, but supplies are likely to increase much faster, maybe putting pressure on margins, maybe volume growth may not come in as fast as everybody is targeting. So what are your views?

[Pranav Singla, executive]

Thanks for the question. So we are fairly positioned well in the market and have a decent size, assets as well. And given the capacity, we do see challenges at times, but altogether, the Indian growth story is intact and so is the company. So a little bit of slowdown in the growth story might happen because of elections and the VAP share might go down because of election that has happened in this quarter or the past quarter.

But going down ahead, we see everything should normalize very soon, even the exports have. If you see, it is highest export we've ever done. So everything globally has been improving and we are positioned in the market in such a way that we are there in both primary and secondary, both.

So the dealer has to say something. It's either primary or secondary. So we are in a lucky spot that we don't see a lot of pressure. So things are aligned and the demand -- when it becomes soft, we set ourselves secondary mode. When it's strong, everything is selling as equal.

[Atul Garg, executive]

Also to add here, what we are -- when we are expanding what we are doing is not increasing our capacity in the current format that we have under production. So we are increasing our range and everything. So our aspects are of increasing SKUs.

[Bhavesh Chauhan, analyst]

Okay. And we had a weak quarter this time in terms of volume growth. I think we are targeting more than 25% volume growth. So is it that we are going to cover up in the next coming 3 quarters, so that average growth is north of 20%.

[Atul Garg, executive]

As we mentioned, our major capacities are coming in H2, by the end of H1. So the jump in everything would be visible thereafter only. And for -- to defend ourselves, it was a fairly 11% up quarter -- year-on-year. And given the industry and the overall election scenario, so that is something that we decently satisfied with right now. And also the Nabha volume, how I mentioned, couldn't be accounted for in JTL right now. If that was there, it would be 97,000, 98,000 tonnes anyway in the JTL. So altogether, everything is according to the target that we had in the mind, and we told as well.

[Bhavesh Chauhan, analyst]

All the best.

[Operator]

The next question is from the line of Vikash Singh from PhillipCapital.

[Vikash Singh, analyst]

I just wanted to understand one thing, if I look at the Y-o-Y perspective, while my value-added product sales had percentage wise declined significantly, I still managed to do better EBITDA per tonne. So effectively, just wanted to understand, has anything changed in the product mix or is the function of something else?

[Pranav Singla, executive]

See, in our range of products, what happens is that we are able to look into and produce those things which give us a higher value-added products. In value-added products also there are the thicknesses and sizes, which give you higher returns than the other normal commercial material, which is, say, galvanized pipes.

So in the first quarter, our value -- even after our quantity, value-added has decreased, we are able to maintain a higher EBITDA level. It's because that we produce those smaller gauge and lighter thicknesses more in this quarter. So that is the reason that you see the quantities less because if I'm producing -- say, for example, if I'm producing a higher [ dire ] and higher thickness material in my galvanized pipe, I can evendouble the capacity. But at times when the demand is such and also when we see that, that we are able to make higher margins on certain products, so we have to sacrifice at times quantity to margin.

[Atul Garg, executive]

Also every company way of telling their VAP production is very different. For me I define everything which is above INR 7,500 under VAP. If I bring that figure down to INR 5,000, my VAP share is already at [indiscernible]. So it's every company way of defining products in their VAP category, like I don't have a lot of SKUs right now. So the basic things I mentioned in general commercial grade product and galvanized pipes.

If I further baked up, the commercial breakup as well, which is bigger section pipes, like 12-inches of pipes, small section pipes. So all those demands are different EBITDA, which is towards higher EBITDA, how that the company explains. But for me, right now, the standard I have kept is only galvanized pipes as value added.

[Vikash Singh, analyst]

Understood. My second question pertains to our annual volume guidance as well as EBITDA pattern guidance. Given that majority of the capacity is coming in the second half and would take some time to ramp it up also. Do we want to tone down our [ assumptions ] or we are still holding to it?

[Pranav Singla, executive]

Whatever we mentioned before, we are confident of that. And everything is in line.

[Vikash Singh, analyst]

So basically more than...

[Pranav Singla, executive]

So first quarter, as I mentioned, Nabha sales volume should be counted for as well. Those numbers show 86, which is 97 effectively. So if you think it that way, it's almost the same.

[Vikash Singh, analyst]

Understood. And just one clarification, basically, in Nabha, the next quarter onwards, we will be merged, right? We will be merging it and would be a combined number?

[Pranav Singla, executive]

It will be a subsidiary.

[Vikash Singh, analyst]

Okay. It will be a subsidiary. Fine. Sir, one more question regarding the plans to have that the additional 1 million-tonne in the Maharashtra. Any update regarding the progress? How much we have spent so far on that project?

[Pranav Singla, executive]

So -- Vikash Ji, the DFT has already arrived at the plant. It's under the installation phase. And it's before time that it has arrived. We're expecting it to arrive later this quarter. Everything is in the plant, and it would be -- setting up right now.

[Vikash Singh, analyst]

Understood. And sir, just one last thing. In terms of demand side, basically, though the monsoon has started, but on a like-to-like basis, do we feel that the demand is better than the last monsoon because there was a long period of election, and then probably would have led to destocking. So your views on that if you see that this demand is still better than what it was in last season or is more or less similar, if you could give us some idea about that?

[Atul Garg, executive]

So like-to-like basis, as we are growing every year, it's very difficult to give you a like-to-like basis. Our range has expanded compared to last year and this year also. We've added the kind of range that we gathered more demand in to. But see, monsoon has just arrived, and it is very soon to say what impact monsoon has affected. So it is just the first, say, fortnight of monsoon in India right now. And the impact is there still to be found out. So I would still wait to comment on what impact monsoons have on demand.

[Operator]

The next question is from the line of Aditya Welekar from Axis Securities.

[Aditya Welekar, analyst]

So just harping on this Nabha Steel post selling. As you said, from next quarter, it will be consolidated. So I just want to understand the sales from -- sales volume from Nabha will contribute to our revenue side? Or again you will factor it in profit from associate or profit from subsidiary?

[Pranav Singla, executive]

Thanks, Aditya, for the question. So whatever there is RTB so that will be not accounted on the -- like that's the process and whatever we sell outside, the fact is that we won't be fitting in, in our mill, that will be sold in the market. So those will be coming in the profitability as well, similar with how subsidiaries numbers account for.

[Aditya Welekar, analyst]

Okay. So means out of the 0.2 million tonne Nabha capacity, the first phase is now installed. So out of that, some portion will contribute to our EBITDA per tonne increase and some portion will directly contribute to our sales volume. Is that understanding right?

[Pranav Singla, executive]

That's definitely right.

[Aditya Welekar, analyst]

So any quantification of that split, means how much will contribute to our external sales volume and how much will contribute to our EBITDA that is our backward integration?

[Pranav Singla, executive]

We won't be able to give an exact number on that right now.

[Atul Garg, executive]

So we won't be able to give you exact number on that right now. But in the future, what we will have to do is we'll have to give you a stand-alone or consolidated statement, so that things are more clear.

[Aditya Welekar, analyst]

Yes. Fair enough. And on the guidance, once again, slightly harping on that. So we -- in the earlier call, we have said that we are targeting 30% year-on-year revenue growth and volume growth for FY '25, so -- and 40% VAP share. So with the DFT coming from second quarter, is that VAP target and revenue targets in line? Or do you want to take that?

[Pranav Singla, executive]

Everything is in line. There is no change in whatever you mentioned before. Everything is just as in line, as mentioned in the first con call -- the last con call.

[Aditya Welekar, analyst]

Perfect. And lastly, on -- if you can throw some light on primary and secondary steel prices? What is the gap between the two, the patra price and our normal HRC prices?

[Pranav Singla, executive]

The last month's gap was around INR 3.5, INR 4. It's a very fluctuating market. The gaps are keeps on rising and decreasing, but we've encountered on an average during the year, the gap is more or less in the range of INR 4 to INR 5 per kg.

So -- but having said that, now the use case scenario has -- the use case scenarios of both the patra and, say, the prime coil has -- prime coil material has been widely accepted in different markets.

So for light structural steel, people are now preferring for gauges below 2 mm, people now preferring patra steel. And for gauges above 2 mm, 2.5 mm, people are preferring primary coil steel. So there has been a market use case scenario differentiation on that. That is more so how do you understand about it.

[Aditya Welekar, analyst]

Perfect. Perfect. That's very helpful. All the best.

[Operator]

The next question is from the line of Pradeep Rawat from [ Last House Blue ].

[Unknown Analyst]

So I have a couple of questions. So first question is regarding capacity expansion in the industry. So how much of the capacity are you seeing in the industry adding up? And do you see any threat that the capacity can grow faster than the demand growth?

[Pranav Singla, executive]

So the industry -- thanks for the question, first of all. The industry is evaluated by the reports that available online around -- at a size of 40 million tonnes. And the industry growth rate itself is above 14%, 15% every year. How the plants are been set up and being added every year, we personally are growing our capacity by 20% to 25% odd every year.

And -- so are few of our peers as well. But we don't see any threat to that because whatever SKUs or products that we are adding, they are new to the market. They are like -- not a lot of people are doing the products. So it's safe to say that we are in a very comfortable position, and the products that we are offering are unique in themselves. So there's no threat that we see as such.

[Unknown Analyst]

Okay. And sir, during the last con call, you mentioned that we are seeing a demand slowdown due to elections. So how do you see demand shaping up now after the election?

[Pranav Singla, executive]

Demand has picked up from before, but the final flow of demand will open up after the budget. So it's a few days away from budget and we should see new government orders lining up after that.

[Unknown Analyst]

Okay. So the demand is currently like lagging as expected.

[Pranav Singla, executive]

It is not lagging, it has improved from before, and it's on track as well. It's just a usual. And the major boost in demand from the government side will -- is expected post elections.

[Unknown Analyst]

Okay. Fair enough. And my third question is regarding, sir, our current capacity utilization is close to 55% and 60%. So why we are expanding capacity instead of first, increasing our utilization? So can you explain the thought process behind it?

[Pranav Singla, executive]

So what happens is how you calculate the utilization of the company is. So on the same mill, you have to make a smaller size as well, which is lighter in weight. And you can make a bigger size as well, which is heavy is weight. So if you are running a bigger size throughout the year, your capacity utilization will probably exceed 100% as well.

But this is -- this cannot be done in a given market scenario because when we have to sell somebody, sell load of material to somebody. It's usually multiple SKUs that one buys, the dealer, maybe government or some -- anybody. So to serve the market as a whole, one has to make multiple sizes throughout the year. That's why the capacity utilization decreases. And it's the industry standard that this is a utilization, and it's a footrule that after 65% steel purchase utilization, you can think about expanding.

[Unknown Analyst]

Okay. So max utilization in our industry would be somewhere around 70%, right?

[Pranav Singla, executive]

It depends on what size the person is making. If it is for DFT, they do -- the capacity utilization increases, because the rolls change times, that is less. So it depends -- it varies machine to machine as well, but usually this is the given case scenario.

[Operator]

The next question is from the line of Nitin Gupta, who is an individual investor.

[Unknown Attendee]

I have two questions. First is, with respect to the volumes. So [ Technical Difficulty ] is there any ballpark number?

[Operator]

Sorry to interrupt, Mr. Gupta, we had last your audio in between. Could you repeat your question?

[Unknown Attendee]

Is it better now?

[Operator]

Much better now.

[Unknown Attendee]

Yes, I was asking how much of our volumes are dependent on the government order?

[Pranav Singla, executive]

As of last quarter, not even 15% of our volumes was towards government. And usually, our sales mix, how we do it in the past is, the majority sales, which is around 50%, 55% is dealer network sales. Around 15%, 20% is government. Around 20% is OEM, EBC players, and the remaining is exports. So that's how we usually divide it. But in the last quarter, not even 15% was government.

[Unknown Attendee]

So just a suggestion like, can we include that kind of information in the investor presentation? Or it won't be -- I mean, just a suggestion, is it...

[Pranav Singla, executive]

We'll take a note of it. We'll keep in mind.

[Unknown Attendee]

The second question is which I'm having is with respect to the importing of DFT machinery. So in the last con call, you said that maybe you can start a test production after the...

[Operator]

Mr. Gupta, we have lost your audio once again.

[Unknown Attendee]

I was asking about the current status of importing of DFT machinery?

[Pranav Singla, executive]

The DFT is already at the plant. It is being set up. And we'll give a formal notice as well when it commences, but it has arrived at the [ plant ].

[Unknown Attendee]

Okay. It is at the plant.

[Pranav Singla, executive]

Yes.

[Unknown Attendee]

Okay. And the last question would be about when you indicated about the fundraising plan. So there was a certain percentage from the promoters as a part of preferential and the other one was for QIP. So any updates you have with respect to that, the QIP part?

[Pranav Singla, executive]

We have taken an enabling resolution as a Board. Whenever we'll be doing the QIP, there will be proper notice given as well, but nothing on it right now.

[Operator]

[Operator Instructions] The next question is from the line of Bhavin Pande from Athena Investments.

[Bhavin Pande, analyst]

Could you shed some light on how the demand scenario were in the exports market in terms of growth as well as trajectory going ahead?

[Pranav Singla, executive]

See, we are only exporting now from our -- majorly from our Mangaon unit, which is located at the -- near to Nhava Sheva port. So in there, again, all depends upon how many SKUs we are able to build for the entire export market.

So now we are bringing in the DFT also, there would be a substantial increase in the export demand, we are increasing our VAP as well. So all these things are in -- happening in an organic way. Going forward, yes, regarding when we listen and read and see about how the world is changing from only-China model to a China Plus One and we being located at -- right next to the Indian port, we have several opportunities to import and reexport to take the benefit of the Indian market and the scenario of free trades from different countries, and also there are at point certain restrictions to enter countries as well like -- [ we are not country ] [indiscernible] U.S. and Canada. So all these things are there.

But yes, going forward, we -- since we are increasing our SKUs, certain markets will open up and we'll be shaping better for the export market. We've already performed better in this quarter as compared to the previous year's quarter regarding the export market, and we had considerable jump therein. So yes, we see that there is good growth in the export market.

[Bhavin Pande, analyst]

Okay. And in terms of -- as we mentioned that the incremental capacity, the effect could be visible in H2. So in terms of expectations for Nabha, are we expecting max capacity utilization to be sort of reached in H2? Or -- I mean, by the end of FY '25. Or could there be some spillover to H1 FY '26?

[Pranav Singla, executive]

No, everything is just in line as we mentioned before. There is no delay of anything in any of the plants.

[Bhavin Pande, analyst]

Okay. That's great. And just one bookkeeping question, I could see other expenses have increased in this quarter. So if you could you shed some light on that?

[Pranav Singla, executive]

I'll have to dig deep on that. Probably I can mail you the answer to that. We don't have clarity on that.

[Bhavin Pande, analyst]

That's perfectly fine. Yes. So congratulations on a great quarter accounting for the [indiscernible] that it was an election period and good luck for the year ahead.

[Operator]

The next follow-up question is from the line of Pradeep Rawat from [ Last House Blue ].

[Unknown Analyst]

I have two more questions. So first question, how do you see demand shaping up in the next 1 to 2, 3 years, since scrap-based tubes and non-scrap-based tubes?

[Pranav Singla, executive]

Primary and the secondary market, we -- again, like we mentioned in the beginning of the call, there has been a considerable depreciation in the early use case scenario of both the China steel. So since primary steel is not offering low [indiscernible] thicknesses widely and also when they are doing so, there is a considerable value-added charge on top of that, which in the secondary steel since there were high restriction and it's in miniature form of -- but processing the same. We are able to do it in a cheaper manner.

So those use case scenarios have defined both secondary and primary in today's scenario. And going forward, since steel is a direct replacement of wood in areas such as low-cost housing for your window frame, door frames, furniture, for the car [indiscernible] shed on top of the building, gates, staircases. So all these areas don't require a primary grade steel, and they can be done from a secondary steel, wherein load-bearing structures are not required.

So rather than having a direct comparison between both of them, I would say that there is a shift in demand, which is a use case scenario is being multiplied in the recent years.

[Unknown Analyst]

Yes. Yes. Okay. So my next question is regarding our value-added products. So I can see that the volume has declined in absolute terms. And you have mentioned that the election was reason for that. So I was unable to like understand why election was the reason for that? So can you explain about it?

[Pranav Singla, executive]

No. Exactly see, so what we said is, yes, we do supply a considerable amount of value-added products, which is only the galvanized steel pipes that we cater into the value-added product or VAP. Due to the last election and there were -- the government projects of Jal Jeevan Mission and all gets stalled. So in those, the quantities decrease.

But having been said that, I also mentioned that we were able to maintain higher realization on our value-added products, and hence, the quantity declined because we were able to sell the products that were higher realization, which is a lower thickness, lower-gauge material. That is the reason that we even after our value-added kitty being declining number, the volume terms that you mentioned, we are able to maintain the EBITDA level that we showcase. So that's the reason that at times due to the market scenario, we have to forgo higher productivity or volumes and cater to that higher margin business so that we -- our bottom line does not get affected.

[Unknown Analyst]

Okay. Fair enough. And last thing about Nabha Steel. So I missed that at the beginning, why we are not actively using the production from Nabha Steel?

[Pranav Singla, executive]

It is in the process in which the products that are being offered over there. Right now, they are not keeping the quality that -- like the exact requirements that we require at JTL. So it is about a month away or 2 months away from the exact products that we require at JTL to make our pipes. So after that, we'll be using them in our Mandi Gobindgarh plant.

[Operator]

The next question is from the line of Pallav Agarwal from Antique Stockbroking.

[Pallav Agarwal, analyst]

Congratulation on a good set of results. So just wanted to understand on the CapEx part, how much of balance CapEx is left to be spent on this 1 million tonne expansion?

[Pranav Singla, executive]

Thanks, Pallav, for the question. A sizable amount is left right now. We won't be able to quantify the number right now. We cannot quantify the number right now.

[Pallav Agarwal, analyst]

Okay. And also, I think in the results, as you mentioned that some warrants were converted into shares. So equity infusion during the quarter? Or this is just the money rolling [indiscernible] it was just a conversion of warrants into shares?

[Pranav Singla, executive]

It was just a part conversion of the warrants money that were allotted before, just a part conversion of that.

[Pallav Agarwal, analyst]

Okay. And so like what is the amount of warrants that are outstanding? And when is the timeline for that by which those have to be converted? And would be basically the money that would come to the company on conversion of those warrants?

[Pranav Singla, executive]

So the promoter recently into money [indiscernible], and we allotted [ 200 ] crore shares, out of which 2 crores shares were promoter category and 50 lakhs were public category. And the company raised a total of INR 600 crores. And out of that giving warrants, the promoters and public category made [indiscernible] of payment. So INR 168 crores is what the company received inside itself. And the rest amount being the promoter, we have a [indiscernible]. We know when the company requires money and the company -- when the company is in comfortable position.

From numbers we know that the company in a very comfortable cash position right now. So after -- whenever the company requires money, we'll -- the promoters will make the payment at the moment. The promoters are in a comfortable position to make the payment overnight as well.

[Pallav Agarwal, analyst]

Sure. And over the -- I mean I think -- and we broadly maintain a target of reaching 5,000 per tonne of EBITDA over the medium term, is that what the target is?

[Pranav Singla, executive]

Again, really everything is in line, and exact numbers is something that we cannot comment on right now.

[Operator]

[Operator Instructions] The next question is from the line of Prathamesh Dhiwar from Tiger Assets.

[Prathamesh Dhiwar, analyst]

Yes, sir, just one question. I just wanted to know about the industry, specifically about the Jal Jeevan Mission. So how much government is allocating for FY '25?

[Pranav Singla, executive]

Thanks for the question. As of last year, the government allocated a total of close to $7 billion for the Jal Jeevan Mission. We are awaiting the news this year as well, but it should be somewhere in the same line, a little higher.

[Prathamesh Dhiwar, analyst]

Okay. And sir, any other water initiatives like Jal Jeevan Mission that government is doing and their allocation on that? Let's say, Har Ghar Jal, and any other?

[Pranav Singla, executive]

So it's the same mission only. It's the same -- Har Ghar Jal is same mission as Jal Jeevan Mission. And it's just that different cities have [indiscernible] things going on, but it's the same thing.

[Prathamesh Dhiwar, analyst]

Okay. So basically $7 billion expected for FY '25 also?

[Pranav Singla, executive]

The $7 billion is the total budget. Out of that, supposedly, our sector, does sees an inflow of close to $1.5 billion, $2 billion.

[Operator]

[Operator Instructions] The next follow-up question is from the line of Aditya Welekar from Axis Securities.

[Aditya Welekar, analyst]

So just one question, Pranav and Dhruv. In the last call, there was some mention of adding color-coated lines and galvanizing lines in addition to the DFT lines. So any color on that? Where are we on that?

[Pranav Singla, executive]

Again, Aditya, everything is on line to give the exact timeline. It's a little hard right now, but everything is in same as the target time that we mentioned last time.

[Operator]

As there are no further questions from the participants. I now hand the conference over to the management for closing comments.

[Pranav Singla, executive]

Thanks, everybody, for spending the time out of busy schedule for the call. Thanks, Nuvama, [indiscernible] for hosting the call for us as well. I hope everybody has a nice day.

[Operator]

On behalf of Nuvama Wealth Management, that concludes this conference. Thank you for joining us. You may now disconnect your lines.