Mishra Dhatu Nigam Ltd

NSE:MIDHANI

Earnings Call Transcript 2023-Q3

[Operator]

Ladies and gentlemen, good day, and welcome to MIDHANI Limited's Q3 FY '23 Earnings Conference Call hosted by ICICI Securities. 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. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Amit Dixit from ICICI Securities. Thank you, and over to you, sir.

[Amit Dixit]

Thanks, Rochelle. Good afternoon, everyone, and thanks for joining the call today. At the outset, I would like to thank the management for giving us an opportunity to host this call. From the management, we have Dr. Panda Kumath, MD; Mr. N. Gowri Sankara, Directive Finance; and Mr. Ki Muthukumar, Director, P&L. Without much ado, I will invite Dr. Jha for opening remarks, post which we will open the floor for an interactive Q&A session. Over to you, sir.

[Sanjay Jha, executive]

Yes. First of all, I welcome all the investors and the stakeholders and all my colleagues who are joining for this important deliberation -- if we are talking about this quarter, -- we have done reasonably well in the sense that there is an increase in EBITDA in the third quarter from the last year or third quarter of around 10%. Also, even though there is some slight reduction in the revenue by instead of earlier the turnover of INR 234 crores against that, we have at INR 231 crores in this quarter. However, the EBITDA has increased by 10%. There is a most slightly decrease in the PBT because of the different additional cost, the financial costs have gone up certain other years. And we also have the depreciation also on the higher side because of commissioning of a very important equipment, which already we have communicated to you. And I would like to say that the facility which we were working since so many years, got commissioned in this year and be President of India innovated debt facility in the month of December. So the -- this equipment has to started operating now. And we have achieved many milestones in that in terms of establishing the technology, in terms of calling the products, but the volume of production has to pick up now, and we are getting -- the indications are good. So we'll be seeing that it will also add in our earnings as we progress in the coming months and also in the next financial year. The BOP also has gone up from the last quarter to this quarter. But however, if you compare from the previous year, there is some decrease. At least we have tried to see that how we can clear. Our focus was mainly on the side of clearing the inventory. So we have seen that what maximize next rise of sell, and that has been our target. In addition to that, this year, in this quarter, -- we also made a number of new developments in the area of the different products. And that has, I think, one of the important landmark that your company has also started making the seamless tube by hot extrusion, which we have established, and we have the stake in this quarter. Also, we made about the super nickel, super -- nickel super alloy products, which we have made through newly commissioned whitespace mill. And many other product developments have been taken place during this period. In this also, I'd like to mention the growth of facility, the armor with a symbolic some small set of the dealers started giving the contributor in our quarter 3 or production. It is going well as far as the production is better. So -- and we have, today, the order book position, we have maintained at the finer level, which we had in the month of March. So order booking also is -- I'll not say very good, but it is also picking up, and we are able to view. And on the new facilities, we are expecting that more and more orders coming. So this is what I would like to submit here. And I'm more than my speaking about the performance, I would like to know from the investors, but what is your concern, what are the questions regarding the performance of the company.

[Operator]

Thank you very much. Ladies and gentlemen, we will now begin the question-and-answer session. [Operator Instructions] Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question is from the line of Amit Dikshit from ICICI Securities.

[Amit Dixit]

Yes. Out questions to assemble, let me just ask a couple of questions of mine. The first one related to the space budget, as we saw that there has been a meaningful cut in the space project this time around. So now MIDHANI have got a significant step in this base sector as well. So how do we understand this in terms of future ordering for the company in particularly in the space sector?

[Sanjay Jha, executive]

Yes. In fact, if you might have seen the space budget is only for the R&D. What the space to that policy is that they are diverting now the space business towards the private sector. So I see that as for the investment in the space is concerned, it cannot be benchmarked with the government allocation and setting the funds. So you'll find that as you might have seen that recently, the LNT and HL consortium, they have on I mean taken that one order for making the PSLV. So this is one example of how the space is moving towards the privatization. In fact, for SSL also, you'll find that the many tire players will be coming in this field. So the space now has entered in the new domain. So that's why that you might have seen the reduction in the money. But as far as the R&D work is there, we are very much like impressive, and we are very much excited that some of the new products also, it is coming up in this. So those things also will flow to our city, but then more than many other players are also coming in the manufacturing of the materials in the country. It is not that MIDHANI have the monopoly and exclusive right on that. But as on today, on the many materials, except MIDHANI, no other players out there in the country. But it is going to have the another player also. But basals volume as is going to pick up in the coming years.

[Amit Dixit]

Okay. The second question I have is essentially on raw materials, right? Last time, you indicated that the prices of the raw materials has not come off unlike the prices of raw material for traditional steam sector. So just wanted to understand what is the scenario now? Have you seen some erosion in prices or have been picked up again from this quarter?

[Sanjay Jha, executive]

Prices of raw material, I think it has been established. I mean steel is not very -- no but there is some tier in the price. But today, not only the price is a criteria, in fact, getting the raw material on time and getting the equipment on all is the big challenge. And that also, on the very high end midrise firstly the year scarcity, and there's a problem in getting the materials in the future also. And this is going to continue for some more time. I don't know for how long. But it is also going to have impact on any manufacturing industry depending on the import of the raw material. So not only in the MIDHANI enterprise since our requirements are very exclusive in nature. So it will be definitely there will be effect on the raw material supply as well as in the price also.

[Operator]

Our next question is from the line of Nikunj Mehta from Wealth Guardian.

[Nikunj Mehta, analyst]

I have 2 questions. First is regarding the scrap and the rejected material that we have. It's not put into this quarter, but in the last 4 years, that number has kept on rising. And as I see it, it's about 22%, 27% of your total inventory and about 16%, 17% of your total capital employed. Now from what I understand, it's part of business, but at the same time, that much part of our capital employed is not earning anything meaningful for us. So I'd like to just understand how you'd want to try and what are your thoughts on tackling this one aspect of our business, and can we reuse this in any form or shape into some other products? So that was the first question.

[Sanjay Jha, executive]

Yes. In fact, are so rightly that scrap dilution of the scrap is going up. One part is that the cost of the raw material also has gone up, so scrap costs also will go up because valuation depends on the -- what is the price of the raw material, number one. Number two, if the quantity is increasing and you say that convention part has to be seen. So we have taken a big initiative that how to consume the reverse or recycled raw material as much as possible in our own system so that we can also save the conversion of pure raw materials coming from the import stores. So in this direction, as you see in this quarter or there is a substantial increase in the percentage of scrap used in our operation of alloy making. So it has gone up earlier something around 40 to 45 to now 60%, around 60%. This is increasing now. But at the same time, the nation also there. And certain scraps, we cannot recycle. We cannot sell also because of the strategic material. The scrap sort of selling in the market will not be good for the as a national perspective because these materials are very, very strategic in nature. So we have to keep it within us. And if possible, the customer says that you can recycle the scrap, if they permit, then we can recycle those things. So slowly now the customer also we are taking -- we are improving our technology, and we are also trying to confuse this customer that by recycling also we can get the good quality. So there is a change in that also. And you will find that with this type of initiative. I am hopeful that it will come down, but it cannot go to the very low level in just in the immediate future, that it will take some time to come to that level.

[Nikunj Mehta, analyst]

That's very helpful, sir. And if you could just portray some picture on the competitive scenario that's there in the market, especially the domestic Indian players. Are you seeing any rising competition there? Or will continue to dominate the market as of now?

[Sanjay Jha, executive]

No, no, competition is very much in the market, no doubt. Many players have come in the area of special steel, nickel west alloys. Of course, titanium still we are the only player in the titanium. But in nickel alloy, they are coming forward. But I am also seeing that there's a volume also increasing, requirement also is increasing. And not only in the Indian market, the export potential also is there. So the opportunity is also there, but then you see the competition. So if you like a situation where we have to improve our efficiency, and we have to see that we can meet the -- like can cut down the cost of production, so that will be more competitive in the market. Many -- I would tell you the many orders, we have -- Megane now taking on the completed bidding. We are not taking like on a modulation basis. So we know that where we are today in terms of the price, in terms of our efficiency. And I am sure that in the coming days, the future will improve further, so that we can be a leading player, not only in terms of our technology and quality also in the price also. So this is what we have -- our plan is there, and we are working towards that.

[Operator]

Thank you very much. [Operator Instructions] The next question is from the line of Abdul from HDFC Securities. Sir, your line has been unmuted.

[Unknown Analyst]

What kind of opportunity MIDHANI can target over the next 2 years? This is my first question. And what are the key development and in next -- last quarter.

[Gowri Narmsetti, executive]

Yes, I think this is a very important question you have asked, both questions are very important. Next 2 years, our target is -- we have to enter in the new segment of the products. And the new segments already, we have illustrated the access, and that's what -- that is suing the second question regarding your developments. So recently, in the last quarter, QC, we have made a nickel base alloy called Hassalo, places we have made from our new white equipment. It is totally -- entirely imported in the country. So that is the one product we have -- I am very hopeful that we'll be able to do in a good part. In addition to that, the Finder product, we have the coal road ships also. And in the area of senate tube making, when we have installed or the new facility commission, that also I am seeing that opportunity is there for us in the new segments. In addition to that, whatever we have installed a new vacuum induction melting of 8 point capacity. It is going to enhance our production capability for nickel-based alloy. And that facility also is so well equipment is there that we can recycle the scrap. It can melt the 100% of scrap in that. So we'll get the cost advantage also because of that. So this is one area. Also, we have, in fact, the certification we have received for making the place for oxygen plant for a very lucrative company, this is a aero. the play 2 meters. So this we have for making the oxygen plant making facility. But today in the country for making the 3-meter with channels in place, nobody has no statutory that testing. And NBI, what we have is the market is there for almost around INR 2,000 crores. So if we are able to pick up part of that also in the coming years, it will be a good value proportion for us. So what I must say, I say that for our Whitestar mill, we have the technological advancement what our people have done. There's a lot of potential. Also, we have produced the amour steel . Armor steel feel like it is being imported in the country today for many different applications. So we have one advantage that we can make a very low thickness also armor plate in our facility, and we can meet the requirements of armor steel convention in the company. It is coming in a big way. So an armor also there, vehicles facility is there. But many of the large interaction programs are in the country. You must have heard about that India is trying to do that, how to endemize their large sum some of our very important fleets of aircraft supplied by the OEMs, either from the rational region or from the other western origin. So there are also the many alloys we have developed, and I'm hopeful that, that business is already coming up. It will be growing in the future. I cannot tell you the value for that, but it is going to be -- if those things are in the -- coming in the form of the business, there will be a big opportunity for us. have not sell, but we are also now installing our 10-tonne , not we are going to commission. The titanium capability also being almost it is going to more than 2x whatever we are manufacturing today. So like that many more things are there. You'll be getting that information as and when we start booking the product with ours.

[Unknown Analyst]

And what kind of exports are we looking at for the next 2 to 3 years?

[Gowri Narmsetti, executive]

Yes. The export, I said mainly, we see last couple of years, our main area that how can make MIDHANI as a brand in the international market. So you know that initial the brand making requires a lot of credibility, your quality should be good, your price should be very competitive. The delivery also should be on time. So there are many factors. So we have worked hard and our team is still working and those things are getting established. So I am hopeful that there the target which we have decided to reach around INR 250 crores in another 2 years. I think it's not impossible to achieve that.

[Operator]

Thank you very much. [Operator Instructions]. Our next question is from the line of Ankit Gupta from Finalta Research.

[Ankit Gupta, analyst]

Yes. Sir, your order position looks a bit stagnant for some time. So sir, can flow from like what is the contribution of various segment in the order book, what is the execution timing of those orders? And what is your take going at? This is my first question.

[Sanjay Jha, executive]

Yes order book, whatever we started in the first March to today, it is almost at a similar level. So it is like that whatever we have produced a that much only order we have booked, but there are some indications that we are waiting for certain orders to come. So it is going to flow slowly. But as I have told that we are now -- not only this is coming from that sector. In fact, many other things we are depending on that how quickly you can execute the one order sort of second income. So many orders are like that today. And there -- as you said, that time required for conversion given is very less, especially in an area of export. So with the additions of new facility now, we are hopeful that those things also are going to address. So that will see the good inflow of the orders because without orders, how you can explain the value improving my business. So there are some potentials there, which I cannot tell you at this moment. But many things we are working and we are trying to interact with that customer. And as and when we get this type of opportunity to interact with inform, but things are there in the different directions there. We'll see that this can be done. And today, we have the visibility of another INR 600 crores of order. Visibility is there, but it will be coming at a different level of time.

[Ankit Gupta, analyst]

Sir, my next question is regarding the import of certain materials, like are you facing any struggle due to Russian, Ukraine war in this?

[Sanjay Jha, executive]

Yes, Russian, Ukraine conflict has put a lot of pressure on the supply of raw material for all countries, so that for India also. But we are affected for mainly 1 and 2 raw materials because of that. So that we are trying to resolve it, but it has really affected some of our areas like titanium is one store, which is coming from the outside. So that is what got affected because of this conflict because we're sure that those countries are having the -- one of the biggest production capacity and raw material also resources also. It has really affected our production on the titanium front. But we are trying to address those issues with proper our agreement of proper procurement system. But yes, there is some effect there on that event.

[Operator]

Thank you very much. [Operator Instructions] We have a question from the line of Rohit Ohri from Progressive Shares.

[Rohit Ohri, analyst]

Sir, a few questions. The first one is related to the strategic and technical tie-ups that we have. And in terms of the MOU with Boeing India, we were supposed to supply some raw materials for aerospace and some more tie-ups which are there with Lockheed Martin, if you can take us through the developments in that? And if at all, there are some orders that are flowing from that?

[Sanjay Jha, executive]

From Boeing whatever going in directly, they are not buying the raw material. Going to that field is that home server is working with them for supplying certain components, certain things, they're all connected within their supply chain. So they buy the material, but they are going and certify the company from where they should buy. So we have entered in that first stage where the Boeing has assessed our capability. And they have also told their all their MSME and industrial partners that you can buy raw material from MIDHANI. Now there -- they are looking for that when they need the material, then they will come to us for getting the raw material for their component products. So in that connection, we have moved forward, and we are hopeful that some of the people who have interacted with us recently, they can come forward and take the material from us and supply the material under for the Boeing supply chain system.

[Rohit Ohri, analyst]

Okay. And for Lockheed Martin, any developments over there?

[Sanjay Jha, executive]

Lockheed Martin is also on the similar lines. They are also not buying directly. But there -- our main area with Lockheed Martin was to have some of the investment type of proposal, a strategic type of finance. So which at this juncture, they have shown that they are not a position to invest in the different areas, technological area where we wanted to work with them. But we are in touch with them regularly. But let's see when we can convert something into the business. But today, we are only in the area as we issue more. We have more indications of any orders or any raw material buying from us.

[Rohit Ohri, analyst]

Okay. Sir, last time when we spoke...

[Sanjay Jha, executive]

We have some indications from also, we have something from also from Patent Whitney. So these are the -- some of the discussions are going on. orders also is tepid. It may not be in the large volume, but with the small beginning, small or saying to start.

[Rohit Ohri, analyst]

So last time when we spoke about JV with Nalco and we were speaking of appointing some consultants and there were some requirements that time which were quoted. So any planes have happened over there? Or when do you think that seems to have fall in line for the JV?

[Sanjay Jha, executive]

Yes. since that project which we had planned initially to make 60,000 tons of flat products and investment also was quite big. So we wanted to reassess again that whether the market is potential is there for setting up a facility. So we went for exercise by appointing a reputed consultant to have this capability to work in this sector. So they have done a good job. And initially, they have submitted a brief report they have submitted. And we have -- based on that report, we have allotted some more studies. So they are still connecting the studies by interacting with the various stakeholder, customers and producing agency. And it will be after that, the entire scenario will be reviewed at the highest level in our ministry. And once that is being clear, then we can decide what is the direction of our joint ventures.

[Rohit Ohri, analyst]

Okay. In terms of the access and wheels, which is a requirement for the Indian railways and even if you check with Concor, they also mentioned the same Natali something that is the requirement of the government. So is it that MIDHANI can play a role? And do we have some orders for Accellent deals for Indian del rates?

[Sanjay Jha, executive]

Yes. We have actual already, we have supplied 500 numbers actually are already are supplied. And another number, sir. 1,000 numbers already we are executing now. And as you said, about the comp. Concur also, we are participating on their -- one of the tenders. So on the Ace side, we are moving well. Our technology and production factory has been certified, and the product also has gone to their system. Well, of course, we are not making the base is not our product, not the facility. But at years, we have.

[Rohit Ohri, analyst]

Sir, approximately, what sort of numbers in terms of revenue can this patch for us in the axle business?

[Sanjay Jha, executive]

It depends on the requirements, how much they consume this answer. In fact, we have recently established only. And whatever I indicated the 1,000 we are working and another tender, which is there for how much? So another from 18,000 numbers other... These are all... Numbers are sorting -- as and when we receive the order, we'll communicate to you That area is established... Manual... We have only map up some resources like our downstream facilities where I can do finishing operations quickly. Those are ending up. That is a good one.

[Rohit Ohri, analyst]

Yes, sir, definitely. Wandera as well as onetime metro trials, there can be good opportunities if they go well for us. My next question is when we say that you to recycle some of the scrap that we have, is the quality of the output, is it good? Or does it match the requirements of the customer as well? Is there any issue related to the recycling of scrap and using the material again because of course, the efficiency reduces, right? The clarity of the metal also reduces. So are they okay with these kind of initiatives from our end?

[Sanjay Jha, executive]

No, I'll tell you we are in the business of high-end application, like aerospace, missile space, where the people are looking for it consistently in the product quality. So any deviation in the product process has to be go for a number of trials on them. And you know that you cannot risk a satellite with just a small cost saving because of raw material. You cannot take the risk on the missile by saving the small cost and the raw materials. And the same is the case for the aerospace also any aircraft. So people are very careful in deciding the process. So any customer who is coming to us from these sectors, they despite that, what will be the content of the raw material, battle with the quality of raw materials from that still the ticker. So that is why the many times you cannot play with that type of scrap, which is already with you. So it requires a lot of evaluation, then only we can now. So we are -- that's what I said from replying to the earlier our -- some of the participants. We are trying to do that and see that those things can be proven once proven, and then they will also give the approval to go ahead. And that's not bad. We recycle the scrap very carefully. We process it. We certify it. We test the scrap composition. Everything is taken care of. We have in-house on the process. We only use in-house in the process.

[Rohit Ohri, analyst]

Okay. And my last question is related to the breakup of the order book, if you can break it into space defense, energies and exports? [Indiscernible]

[Sanjay Jha, executive]

Around 50% is from the space, and it will be around 30%, 35% will be the defense. And the balance will be from that energy involved on exports in other -- this will be preparation.

[Operator]

Our next question is from the line of Mohit from ICICI Securities.

[Amit Dixit]

So I have 2, 3 broad questions. Number one is what kind of supply chain disruption we talked about earlier and whether this will have any bearing on our business.

[Sanjay Jha, executive]

Yes, supply chain deceptions are there because of, as I said, batteries ponds. So it has not affected adversely as yet. But with our lot of persuasion and taking the initiative at the right moment, we are able to fill the gap with other resources. So now I am hopeful that those things will be also as best. And we are getting good response from our OE and the supplier from the overseas for this caterer.

[Amit Dixit]

Okay. Sure, sir. And also, sir, revenue guidance for quarter 4 and next year and also on the EBITDA margin front?

[Sanjay Jha, executive]

To 3 years, I am very difficult to predict at this moment. But as and when the results are there, be communicated to you. But we are trying to do our level best so that we can improve from the previous year performance.

[Amit Dixit]

Sir, whether there will be any completion of EBITDA margin or whether we will see any pressure on the EBITDA margin or it will largely be maintained like we have done in the 9 months?

[Sanjay Jha, executive]

Very difficult to predict this, but our target is that to maintain the same level, but later how the things are holding. I've not seen any uncertainties. Things are well in control, not only for MIDHANI for the entire country. So if that is that way, if you move, it will be in the testing.

[Operator]

Mr. Dixit, would you like to add a few more questions.

[Amit Dixit]

Yes. So I had a couple of more questions actually. The first one is continuing the question of Mohit and the previous participant on the order book side, sir, what kind of order inflow can we expect in next year FY '24. If you can let us know broadly the segments wherein this order book will come -- or sorry, orders will come, particularly products. So that will help us to track them also the quantum would be very helpful.

[Sanjay Jha, executive]

I can leave broadly the sectors was already expected in the next year is mainly from the energy, then also we expect from defense. We also expect that something will come from the RF space. So those are the things. And then in addition to that, something from railway also will be there armor, then we also expect that some of the things in the commercial done also. Some of the products which we have qualified for 3 meters with plate for the stainless steel. So from that, the application is basically in the area of oil and gas. So those things also is expected. So there are various -- our domain is we are widening our product base. So definitely, I see the customer also is going to be wide and we call it that. The dependency on the 1 or 2 segments is not going to give you the good business in the future. So considering that only whatever the steps where our company has taken in the last couple of years. So now we are confident that we are able to enter in the new areas with our unit quality of the product.

[Amit Dixit]

Sir, is it possible to quantify it in different buckets that you mentioned, for instance, different car space in terms of growth, how much do you expect the order inflow?

[Sanjay Jha, executive]

I have not worked out yet sitting here. But we'll tell you because many areas where I see some places, there may be very large volume also low and so. So -- and we are just hopeful of giving a better one. We will communicate to you as and when we start getting the things holding that.

[Amit Dixit]

Okay. Sir, in last call, you indicated that the revenue from white plate in and armor plant on a steady-state basis could be to the tune of INR 500 crores per annum each. So what kind of revenue from these 2 facilities, specifically we can expect in FY '24?

[Sanjay Jha, executive]

Yes. FY '24 only, we expect that something is better. So whatever the figure we have told, we are trying to target those figures. But let us see that how can we can realize, but potential is there to -- in that sector. And as our economy also is in the good health, I am sure that market base also is good. So we will be -- I mean, there are certain areas where we are working still like getting the supply of input material because we are not making an input material of large quantity within our premises. So these are the challenges which we are facing that how to get the intermaterial on time, and that also is the proper less cost, and so that we can maintain our margin and sell the products. So these are the challenges we are facing, but we are trying to resolve it some way.

[Amit Dixit]

Okay. Sir in the last call you also indicated that there is this -- for vecinoring, out of 100-odd vets have already been done. So till now, what is the progress on that front? How many more vehicles did we do in this quarter?

[Sanjay Jha, executive]

See, there we have the order of almost more a 100 makes out of the area. So we are executing also for this quarter, we are trying to touch around 65 around... 55 is.

[Amit Dixit]

That is by Q4 end?

[Sanjay Jha, executive]

Yes, yes. Correct. New tenders are there in the market now. The also our team has participated and it's very huge quantities. So there also, we have put our participation in there. So let's see if those things are there, it will also add to our business. Great... That's very easy issue.

[Operator]

Thank you very much. Ladies and gentlemen, that was the last question. I now hand the conference over to the management for closing comments.

[Sanjay Jha, executive]

I'm closing for closing comment, we have my -- both directors are available. So I'll ask them to give some their remarks and then we'll conclude. So I'll first ask Baker Finance to tell something here.

[Gowri Narmsetti, executive]

Good evening. As far as the company's performance is concerned, as you have seen for the last 3 quarters, it is equal to the last year same '21, '22, whatever performance is achieved, same performance level we have achieved despite the dissident from the input materials like Sartoria spans and we can as equal industrial or some issues were there. Still, we could achieve the last year turnover. Always, you see MIDHANI over the year, fourth quarter is the best quarter. So this year also expecting the fourth quarter.

[Operator]

Ladies and gentlemen, the line for the management seems to have disconnected. Let me reconnect them. Ladies and gentlemen, the line for the management is reconnected. Please go ahead, sir.

[Gowri Narmsetti, executive]

Yes. Good evening, all the investors. This is Gowri Sankara, Director of Finance. As you have seen for the last 3 quarters' performance, we're more or less equal to the last year despite a lot of disciplines in the shake and the material supplies and all. Still, we have achieved the same performance. And as you have seen for the last so many years, MIDHANI fourth quarter is the best quarter in same way this fourth quarter also, we are expecting to achieve more business as we have come up with some more facilities like WPM, we made tons with these facilities and Bakas. These are all additional facilities compared to last year, which we hope with these facilities, we can do more business. And we hope that we will achieve better than last year. Thank you.

[Sanjay Jha, executive]

Okay. Now I'll give it to the Director of marketing, Mr. Muthukumar .

[T Muthukumar, executive]

Good evening. This is Muthukumar, Director of Marketing. As has been indicated, though there is a sharp increase in the raw material price as well as the power and fuel, we could be able to maintain our last year performance in this year also. And now since we established the white plate mill, there is a much hope on the performance of the MIDHANI with respect to some special grades, which we developed on grid called superalloy 276, which is used in the energy sector. And this sector about the INR 400 crores ottomaterial, it is being imported by DHL. So this will be a direct replacement by MIDHANI to in this sector. So this is a lot of hope on MIDHANI so that we can improve performance. In addition to that, MIDHANI has got advantage of producing a plate, which is 2 meter and above, which is not there in the country. And wolves are only 4 or 5 people. So now we are using this wider plate mill with respect to gas walls or rogan plant. So now we have to depend on MIDHANI, and we are already assume the process. We are contracted with the parties to whom we can supply. So with that coming years, there is a good prospect for MIDHANI so we can improve our sales over these products under the fund on MIDHANI.

[Sanjay Jha, executive]

Okay. So... So then, I'll thank all the participants and also the stakeholder, first of all, putting faith on us and supporting us. And I hope that our lessons will continue like this. And from the MIDHANI management, I assure you the type of the committed people and committed team we are having and type of the technological model this company is having. Our next financial year or this year, we'll be giving good results to the investors. And as our country also is in very good position as on today and across the globe. So definitely, I see a good opportunity for MIDHANI also to contribute in the nation building, and we are doing. And as and when, we will be doing so new things we do there, we will be communicating to you with the referent social media platform and also communicating to the proper such systems. Thank you.

[Operator]

Thank you very much members of the management team. Ladies and gentlemen, on behalf of ICICI Securities, that concludes this conference call. Thank you for joining us. You may now disconnect your lines.