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Ratnamani Metals and Tubes Ltd
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Ladies and gentlemen, good day, and welcome to the Q4 FY '23 Earnings Conference Call of Ratnamani Metals & Tubes Limited, hosted by Monarch Networth Capital. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Sahil Sanghvi from Monarch Networth Capital. Thank you, and over to you.
Thank you, Ashishi. Evening to all. On behalf of Monarch Networth Capital, we welcome you all for the Ratnamani Metals Q4 FY '23 Earnings Call. We are delighted to host the management of Ratmanani today. And from their side, we have the Business -- Common Stream Business Head, Mr. Manoj Sanghvi; and CFO, Mr. Vimal Katta. So without taking any much time, I will hand over the call to Mr. Manoj Sanghvi for the opening remarks. Thank you, and over to you, sir.
Thank you. Thank you, Sahil. Good afternoon to all the participants. I welcome you all to this call and hope everyone is doing good. Our results for Q4 and full year of FY '23 have been uploaded on the exchange and I believe you all had the opportunity to go to the same.
If you see on stand-alone basis, our company clocked its best ever performance in FY '23, with the top line and profitability at historic highs, both crossing INR 4,400 crores and INR 500 crores, respectively. The operating margins were broadly in line of our guidance provided last year and less a bit towards the higher side of the band due to the product mix and stable input [ cost ].
As you all know, past few months, prices of steel have been broadly stable, resulting into resurgence of old projects leading to good demand across all segments in the previous year. Expansion across sectors has served mainly in refineries, process industries and core sector, which may all go well for the infrastructure demand and more traction than we expected in demand of both U.S. and SS price across the globe. However, the order visibility in oil and gas transmission lines looks muted in India, we service water, but the business traction in the other segments and SS price [ and crude ] continues to remain quite encouraging.
Now I would like to straight or touch upon the quarterly financial numbers and business update in brief, and then we can have questions from your side. Our operating revenue has increased 47% year-on-year and up by 36% on a sequential basis, mainly attributable to higher net cases during the quarter. For the full year, our revenue growth with EBITDA of INR 793 crores and margin expansion of 130 basis points. Profitability has been around INR 300 crores at operating level for the quarter compared to INR 200 crores during the Q3 of FY '23. This is mainly because of the product mix, better utilization and operating office efficiency.
We are projecting the top line of INR 5,000 crores plus/minus 5%, and the margin is expected to remain in line as that of current year with the variation of 2% here and there. The present macro is no condition for maintaining our long-term growth and margin prospects.
So as we begin this financial year are orders on hand, as on 1st April was roughly INR 2,600 crores. Further, I would like to brief on few major development, we wish to inform that we had successfully commissioned the capital solar project of 15 megawatts in the month of March, and we expect the same to result into further reduction of carbon emission, and surely our power cost showcasing our orientation towards ESG and sustainability.
Our CapEx in [ CSM SS ] are progressing well now with some initial delays that happened due to land acquisition and longer lead times for [indiscernible]. During FY '23, we have continued with our strategy to invest in more specialized products and improving efficiency with focus on technology and infrastructure. Our well calculated and judicious capital allocation in CapEx and all investments resulting in very strong balance sheet to leap to the next level.
Now regarding our subsidiary, Ravi Technoforge Private Limited, which has clocked a total revenue of INR 245 crores. with EBITDA margins of 10.8% and net profit of INR 4.5 crores for FY '23. The CapEx has been underway for capacity and process expansion, automation, cost reduction captive renewable power and same is expected to be completed by the end of September, October 23. We are projecting the top line growth of 15% to 20% with margin expansion of 200 basis points for FY '24.
That's all from my side at the moment. Now if there are any questions, I will be happy to answer them. Thank you.
[Operator Instructions] We have our first question from the line of [ Noel Vaz from Union Mutual Fund ].
Yes, I just -- so in the fourth quarter, what is actually were these sales for the quarter? And is this particular run rate, can it be sustained or annualized for FY '24?
I could not hear the first part of the question. Please repeat.
Yes. What is the sales volumes for the first quarter? And can the number be annualized for equity?
So the total revenue for the first quarter was approximately INR 1,450 crores and yes, we had the capacity to do it, but sustainable over long run quarter-to-quarter basis, it is very difficult since we are in a project in men. So we might see INR 1,500 crores in one quarter, another quarter can be INR 1,000 crores. Again, it can go to INR 1,500 crore. But yes, say, INR 1,000-plus crores is what is our target, with in one quarter going to INR 1,500 crores, INR 1,600 crores.
I'd like to answer one thing. Total volumes in Q4 were close to 16,000 tonnes for all our products. And as Manoj has shared, see, in our case, margins are totally dependent on nature of products, product mix, timing, so many factors are there. It is very difficult to say if performance in a particular quarter can be extrapolated because we are in direct business, order-driven activity. So we always have between 16% to 18% in the range at EBITDA level, which seems to be sustainable over a longer period. Plus/minus 1% here and there may happen in a particular reporting period, and that should be there going forward also.
We have our next question from the line of [ Pritesh Chedda ] from [ Lucky Investment Managers ].
Sir, can you give the volumes for FY '23? And what would be the capacity utilization on this blended capacity utilization?
See total, we did close to 304,000 tonnes for both the products during FY '23. And on capacity utilization, Manoj have shared, we can see in our case, or standard steel and welded , it would have been optimum, standard steel welded and stainless would have been close to 60%, 65%, near capacity in it's time, standard steel and seamless would be closer to 35%. And on carbon and steel, it has been optimum, [indiscernible] has been optimum. [indiscernible] capacity has been optimum. Newer capacity will be maybe around 30%, 35% sort of thing.
I will end there. segment to segment, it will vary but most of the segments other than newly added capacity, utilization was between 60% and 50%. Only in steel steel extrusion and LSAW, both were close to 30% utilization.
You said that SS seamless is 35% and SS welded is 100?
No, no. SS is optimum, cold-finishing okay? Optimum means we keep close to 80%, 90% part of it. Cold finishing will be around 8,000, 9,000 tonnes sort of thing. Yes. And welded maybe around 50%, 65% sort of thing. Newer capacity has been roughly maybe around 30% only for [indiscernible] .
So [ coal ] is 30% will be. So basically, on the 20,000 tonne capacity that you added in FY '23, the capacity utilization is 30%?
Yes.
And as SS seamless, which is our coal, is full capacity?
Yes, yes.
Okay. So basically, in the 48,000 tonnes, we would have SS seamless of 8, SS welded of 20,000 and SS sort of 20,000?
See, SS, whatever we produced from our seamless, some part has gone for coal finishing also. So if you look at the sellable capacity, that will be even lower because whatever [indiscernible] we are using, that will become part of the overall capacity only. It will not be available for sale.
Okay. Is it possible to share in this season 34,000 tonnes? How much is SS?
Earlier we used to share but since last few quarters, we have taken a conscious call not to share, yes. Offline, we can discuss, yes. Yes.
What is the progress on the capacity expansion that you had planned about INR 180 crores in SS and another INR 170 crores in carbon steel?
Yes. So stainless steel expansion of [indiscernible]. Will be over by December of this calendar year or maximum January of next calendar year. For carbon steel, land acquisition and development has already started, and we expect that to happen in first quarter of next financial year.
Okay. And my last question is, sir, there is this antidumping, which has come on hollow pipe, SS hollow pipe. So how -- and also SS pipe, I think the antidumping, the duties have been increased. So how does it benefit us in terms of the capacity utilization, if you could share that and the industry at large?
Yes. So antidumping on stainless steel seamless pipe had come somewhere in November, December of last year. And since then, we have seen demand increasing, but a lot of it being imported in India was reexported. Where I think that demand for there, the antidumping does not play any major role. It is still being import. But yes, some demand increase is being seen because of this antidumping.
Okay. And do we have -- are we 100% backward integrated in hollow pipes?
Yes, we are -- we have our own mother alloys, but not from right from melting at the moment.
Not from?
Not from right from melting at the moment.
So you basically must be buying a bar right and you make your own hollow pipe? Off-billet and you must be making on hollow pipe?
Yes.
We have our next question from the line of [ Pujan Shah ] from [ Confluence Advisors ].
Sir, on a previous con call, we have seen hydro demand on that part. So currently, I wanted to know on that part as well, what are the situation currently we are facing from the hydro side and how we are looking at the industry for that?
Hydro?
Hydro then, for hydro. Yes. I'm talking about hydro power plant.
Power plant, no major demand. For hydro then, still very nascent to comment what kind of pipe will be used and whether stainless steel, carbon steel -- in the process, maybe stainless is important, maybe carbon steel that we will come to know once -- going forward, is there a lot of research for the steel is also going on and in the process, whether it can be welded, seamless so those research has been going on.
Okay. And sir, our expectation is that we are speaking about INR 5,000 crores top line in next financial year. Currently, we are at around INR 4,500. So -- and we have grown around 43% for this financial year. So why we are eying -- like are we being conservative? Or we are seeing subdued demand in any sector specific?
So 2 reasons, this -- the kind of growth we had for the last financial year is slightly one at a time because the projects for their demand was their capacity came in at the same time, so we could capitalize on that. But yes, in this financial year, we see some drop in carbon steel line size demand. So still because of better utilization of other products, we will be able to maintain 10% growth rate.
We have our next question from the line of Kunal Shah from Carnelian Capital.
Hi. [indiscernible]. I just wanted to understand the volume growth guidance and the general scenario, right? Also at the same time, wanting to understand that we [indiscernible]...
[Technical Difficulty]
Sir, I just -- I hope this is better now. A few questions from my side. In the first place, congratulations for such a fantastic set of numbers. I wanted to get a sense on the volume growth for the next year? And also we did about 16,000 tonnes the execution in the current quarter in comparison to about 66,000, 67,000 in the previous quarter. So wanting to understand what led to the superb execution in the current quarter? And also if you could help understand volume growth guidance for the next year?
So as commented previously in my opening remarks, the volume growth -- like we finished this year at INR 4,400 crores to INR 1,450 crores. Next year, our expectation is -- or what we have budgeted is close to INR 5,000 crores. It can be a plus/minus 5%. And to answer your second question, what led to such numbers in the quarter. So the utilization for all the segments and all the products during the last quarter was at its optimum, which led to this number. So in case if there is demand and for all the products, all the segments, then yes, this number is achievable. And I have in my previous call, we said that we have capacity today to reach a turnover of INR 6,000 crores.
Got it, got it. And also, we have this enabling resolution that we have taken for about INR 500-odd crores. So you would want to light I mean, how should 1 look at that?
Basically, it is an enabling resolution. So because we are working on our next growth plan also. So if required, we may go for tying up the debt. And in case of that, as you know, now regulations require a portion of debt has to be raised through bonds and other instruments. So it is an enabling regulation Right now, nothing has been planned as far as CapEx is concerned, but team is working on that. So the is a fair time, nothing else.
Got it. Got it. And just wanted to understand on these bearings, right? So we have got about INR 104 crores revenues in the current year coming from Ravi, right? So when you say 5,000, how should one look at the clearing business in this 5,000?
5,000 is on stand-alone basis, whatever the INR 300 crores we are targeting will be for additional. So on consolidated basis, we can have a number of INR 5,300 crores with a plus/minus 5%.
Just one last question from my side. All the general demand scenario, you will share how is the -- how the projects are going on, how is this going on, and you did mention some slowdown.
[Technical Difficulty]
Mr. Kunal Shah is dropped from the queue, so we'll go on to the next question from the line of Radha from B&K Securities.
Congratulations on for performance. Yes. My first question was that, so 2 years back, we had this stainless steel capacity of 8,000. So now that is 28,000. So at that point of time, 2 years back, via hot exclusion the capacity was 6,500. So now that the seamless steel seamless capacity at 28,000. So what is the hot extrusion capacity?
The 8,000 was coal finishing capacity. And today, the OpEx is in capacity is 20,000 tonnes for the new press. On the old press is 6,500.
10,000. Yes. So hot extrusion is 30,000 tonnes and cold finishing is right now close to 10,000.
Okay. And sir, what will it be in the next 1 or 2 years?
See, the marginal increase in coal finishing will be there because we are setting up a facility for higher value-added products, which will become operational by yearend. But overall capacity in standard steel seamless will continue to remain at 20,000 tonnes, combined together with hot finished and cold finished because whatever we are going to produce through hot finished, part of it is going to be used categorically, which will be cold finished. So sellable capacity will be 30,000 tonnes of less 20,000 tonnes of [indiscernible]. So total 50,000 tonnes of CapEx.
Okay, sir. And sir, next question is in stainless steel. So I'm planning to do this coil tubing business. So just wanted to understand for this business, will this be in a separate manufacturing line or in the same line? And also with regards to this, I wanted to understand what is the product about? How is the market size? And what is the scope of business and competitors in this business?
I don't know where you have this information from pointing but the project is still under the implementation and as data, we would not like to dive into that.
Okay, sir. Sir, thirdly, the Ravi Technoforge, in FY '22, we did a revenue of crores. Now in the second half of FY '23, revenue is INR 104 crores. So if you extrapolate, it comes to around INR 200 crores for full year. So is there a degrowth in this business in FY '23?
Yes. FY '23. So for 7 months, the lock the revenue of INR 130 crores. And last 5 months after or being -- acquiring the stake, there is a revenue of INR 105 crores. This year, we have had a degrowth, one, during the first 7 months, they had some financial stress, so they could not actually utilize the capacity and convert the demand into others. And second, because of a slowdown in -- because of the war in Europe, there is a recent slowdown from European manufacturers which led to this degrowth. But going forward, we see that the demand has started coming back. And this year, we will be able to drop close to INR 300 crores.
And sir, what about the debt in this business? I think in FY '22, we have around INR 75 crores of total debt. So how do you see this in the coming years?
Every year, I think there is a repayment of between INR 15 crores to INR 20 crores, which did happen in the last quarter.
Okay, sir. And sir, lastly, this in extra carbon steel mobile manufacturing mobile plant of 60,000 tonnes, around 60,000 tonnes. So that -- is that -- the plant, is it fully depreciated?
I don't know the application, maybe no. I think there will be something like it would not necessarily be depreciated.
Okay, sir. And sir, lastly, what is the CapEx guidance for the next 2 years?
Next 2 years, we are working on a lot of things at the moment, still on the drawing on? So maybe in another 6 months, we will be able to throw some light on that.
We have a next question from the line of [ Riya Mehta ] from Equitas Capital.
Congratulations to a good set of results. My first question would be based on what order book levels of both stainless steel and carbon steel. So I would want to know where this is coming from exactly almost and which segment?
For the last quarter?
Yes, order book for the last quarter, I think 2000?
No. Can you please repeat your question?
I'll answer. I see mainly the orders are coming from oil and gas sector. and process industry for 50 and certain orders from power sector also and plus other cleaners are there okay? And in case of carbon and steel, it is a mix of oil and gas and water.
Okay. And my next question is in regards to margins. So what worked in favor for us this quarter?
See, one thing is you got the benefit of economies of scale because the production businesses both for higher Second thing, product mix also means higher value-added products, volumes were also higher. And in carbon steel, also major orders were related to other in gas sector was margins are typically better. Everything both in favor of better margin.
Okay. And actually, could you tell me the capacity utilization again, if you don't mind?
So you see, most of the segments, stainless steel welded, stainless steel seamless, carbon steel and the [ investments ] and coating. All the products, the utilization is between 60% to 80%, except for 2 capacity expansion like one hot extrusion for stainless steel seemless what we mean and another capacity expansion in carbon steel, LSAW pipe. So these 2 were on 30% utilization, utilization being the first year of actual commercial production. And that's between 60% to 80%.
Right. And in terms of the pipeline of orders, what is the kind of pipeline are we seeing for the next year going forward?
Starting this year with INR 2,600 crores. We've been booking orders for stainless seamless welded across industries and for carbon LSAW pipe However, some softness seen in the CV segment and the line pipe segment, oil and gas segment. But we are hopeful, we are seeing good demand in the water segment. So there of course we'll cover up on the water segment.
We have a next question from the line of [ Dhananjay Baroda ] from [ ASK ].
Just wanted to understand our increase in margins, maybe I missed this. Is it increase the margins because we had some contracts earlier and that's how we got the benefit of lower inventory? And b, which end use industry has seen such a strong volume growth that we see that sustainably grow, let's say, next year and the following year after that?
Come part of it, yes, may be correct that you have some orders which are of the start of last financial year when there was when the war started commodity prices was kind of the new consumer. But most of -- as you know, and as we always say, like most of our owners are on back-to-back places. So we have -- so maybe 10% benefit we would have data from such total orders out of total but not a major fact because of the commodity prices.
Margin is sustainable because --
This margin is between 16% to 18% because last year, if you see if I break down the product mix industry wise, more we did for oil and gas, right? But it is not going to remain same year-on-year. Maybe this year, if I change that oil and gas might go down a little and water is added. So water is added, the margins might -- but still we keep our focus on to maintain to say between like 16% to 18%, 15% to 18%.
Just following up with the question, what is the leverage in margin been oil and gas and water?
Normally, oil and gas is a little more value-added than water, maybe 1% or 2% more. But it totally depends on demand and suppliers.
We have a next question from the line of Vikash Singh from Phillip Capital.
Sir, I want to understand since we are guiding for almost double of the top line versus our current order book. But we are, at the same time, telling that the oil and gas segment demand has been -- is a bit slow. So are we expecting incremental demand to come from water segment or export segment? Or because CS segment is the one which drives our top line. So I just wanted a little bit clarity on that thing?
Yes. So we start in the order book at INR 2,600 crores. So we are already having, say, 6 months backlog if I consider INR 5,000 crores of revenue. And we are saying to water projects, specifically, if I talk about carbon steel, we are seeing a few water projects, which we will book in the first or second quarter, which will be dispensed in third and fourth quarter. So to answer your question, yes, INR 5,000 crores is very much possible, considering you are already having orders of 2,000.
So the domestic water segment is where we think that the traction would be there very important?
There is demand for domestic water segment, there is demand for International Water segment also, projects here under negotiation.
Understood, sir. Sir, second question pertains to asset segment export products. Basically, after many quarters, I have seen that our export order book has been higher? Is it a short-term phenomena you see? Or do you see that this kind of the trend would be sustainable and a lot of order can be exported from India and as segment especially?
Going forward, in stainless steel, yes, this kind of export is sustainable. More and more end customer there are accepting our product -- and once we need the recited orders. We don't see any until and less that is antidumping or anything. We don't see any reason for this to go now.
And because basically traditionally also, we have been betting almost of turnover in installers is still from physical exports direct and around 20% from indirect exports. So that way, some of the in consistent products, we are already there in a reasonable way in international market. So with the increased capacity. Our focus is going to be both on import substitution and international market also.
Understood, sir. Sir, just one last question on the CapEx. So at least, can you tell us the FY '24 CapEx targets, which you considering current plans?
Maybe 150 might be there. But see something for the next growth plan will also be happening by the time we close the year. So major outflow will not be happening for that. So safely, we can say INR 150, INR 200 to the range.
We already had INR 350 crores kind of the CapEx fund, which was announced at the start of the but additions also which...
For Orissa project, it will take some time.
Okay. So as of now, how much we have spent on that INR 100 crores of SS cold-rolling facility and this Orissa project, how much we have spent on these individual projects?
Project on very single depend some amount for lease rent and other sincerity also will be happening for land lens will be a rent only will be in CapEx will take some time. Some activities may be studying. Am I right, Manoj?
Yes. CapEx will take some time. Maybe we will see something starting from the second quarter of this year.
In some instance, we might have and maybe around INR 20 crores sort of thing. Major outlook will be assume once the deliveries of critical plant starts.
So this year, again, meanwhile cash balance going up, right? Because this money would be getting at?
Yes. And we -- as I have shared [indiscernible] plans to continue this growth during FY '25 also. So something other than whatever we have planned, that may also be planned. And we'd like to start working on that opportunity also.
Sir, what is our net cash balance as of now?
See, net cash keeps on fluctuating. So as on 31st March, we -- on net side, we were close to INR 20 crores plus. Today, it might be again INR 20 crores, INR 30 crores plus or minus. Because total long-term debt will be maybe around INR 140 crores.
Okay. That would be our peak net debt level?
Yes, yes. Because there are no short-term borrowing, only long-term borrowings of roughly INR 150 crores are there as on date.
We have a next question from the line of Pallav Agarwal from Antique Stockbroking.
I had a question on your stainless steel manufacturing, the hollow pipe process. So is there some difference between the hot extrusion process coal drawing or a pile process. Is the process that we follow, is it superior to the other processes?
Hot extrusion, figuring growing, those are all recent processes. Hot extrusion is we -- hot extruded material is input for the filter. But yes, there is a similar process to hot extrusion, which is piercing and piercing is normally used for currency investments, whereas China, I don't get the technology of using it for stainless steel pipes. And then the Indian manufacturer has also started. So yes, there is a large difference because one is used for currency another is used for singles. The product which comes out is also different.
Sure. So there are certain high-end applications where probably that product is not accepted. Is that the case?
If you see, for example, Saudi Aramco certification based on a pierced material or if you see for example, Reliance specification, they don't accept the test material. So there is a reason a lot of study has gone in -- there are various papers available online also, which explains the difference between both but there are some industry and criticality is not so much, and they are okay to use peers.
Sure, sir. Okay. And also just on the question on exports. So what was the proportion of exports in total revenues and in the order book?
Total exports close to 20%.
And order book also current order book of INR 2,000 crores.
Order book, I don't have a breakup of that.
I'll just check. Just 1 minute. Out of these -- as on 1st of May, we were having close to 550,000 crores of export orders out of 2,430 crores of total order book.
We have our next question from the line of [ Aman Thadani ] from Solidarity Investment Managers.
Sir, my first question is 1 of our peers has recently entered the ERs. So I just want to understand that what sort of margin does a new player wake in this space and the overall opportunity in this space.
What sort of margins in this space is difficult to say at the moment. Because, see, the last 3 years, 4 years, REW was running, I'd say, almost 90% capacity utilization this year. But this year, I think that there is -- the demand is not as high as it was. So -- and with a new player coming in, of course, we will take some time for approvals and everything. But margin is, again, difficult to say because it varies from 12% to 16%, 18% depending on number of projects available in market. See what has happened, the demand has also gone down.
Sir , how much time will it take for a newer guy to ramp up? How many years does it take?
For a new company to ramp up 12 to 18 months?
Okay. And sir, my second question is, sir, in CS is a key business for anomaly. So what is above this product or this segment that a lot of players have just not bought it right?
The amount of time to right from 83%, 84% and slowly consistently growing. That is the only thing, I would say, which different.
So time in terms of what is it in terms of -- is in terms of the complex that is there and like to understand the complexity or?
It is a different mindset of business, I would say, it is not like a normal tubes. Carbon steel is totally different if I compare with stainless steel.
Okay. Even if someone is able to get the product right. We want to maybe build on the projects, what are the ideas that one would be?
It's more about the competition rather than economy. I don't know what you want to understand from me answering you.
And sir, just one general question, sir. In the past, we have guided for 15% to 17% long-term margin band. But this quarter, we have seen that going on, it would be more of a 16% to 18% range. So sir, what has changed?
And the product mix because as I have told you, the carbon steel demand oil and gas is subdued. So likely from that INR 5,000 crores more will be sales more will be value-added products in carbon steel. So that's why it is 16% to 18%. But then the start of the year, this is our guidance, it can be between 15% to 18% also going forward. If water projects are moved at a little low margin, it can be 15% to 18%.
[Operator Instructions] We have our next question from the line of Ashutosh Tiwari from Equirus Securities.
Congrats on good numbers. Firstly, this cold finishing capacity will go to what level after this expansion is completed? This new capacity expansion is of 1,200 metric tonnes to start with, and it will go up to 1,500 metric. 1,500 tonnes, so you definitely go to only INR 11,500 crores?
Yes. The capacity expansion is small in terms of tonnage in the business for small diameter fields. So in terms of meters on to 5%.
Yes. So -- and secondly, we had obviously talked about development of multiple grades of products with this new seen less housing diversity. So where are we in that process in last 1 year? Have you developed major products and that is going to drive the growth in export market going -- some color on that? How should we look at export that business over the next 2, 3 years?
Yes. So the extrusion, what we had expected to in the cost here. we could achieve better than that. utilization with the development of grades, which we did not expect in the first year itself. So going forward, yes, the utilization will be better than this year, we are targeting between 50% to 60% SP-6 50% to 50% ratio level.
So -- and assets, given the decision will be higher-margin business, like 20% plus?
Some range yes, some range lower. So blended, put together in the same close to 15% to 18%.
Okay. And that is also in there, how do we see it?
Yes, because the lower-end grades when it is more like commodity, there where the margins are also not so great, but for high-end grade or difficult to unseen they're good. So landed we always because we cannot only do high-end grades and or we cannot do only the near the low end of the product. So both landed we see the capacity utilization also and margin going through.
Okay. And like we had highlight earlier in the concert, you highlight like what kind of bidding that we've done to the tonnage in all in oil and gas, water and all it up now?
The terms I haven't prepared at this time, maybe in the next call, which will plan after 6 months for the semiannual results have more detailed details on what we are giving.
Okay. But can you like some projects which are, let's say, the activities going on right now?
Oil and gas, if we see right now for mining, what we have is 1 project of the Sonic India Limited. -- which is the NPL Phase 2 Co, Kakuna, Mangalore, Bangalore pipeline for that -- so that is under bidding. Then a few projects of IOCL are under building few in the East for IGGL, which is Iranians undermining. 1 project for Vedanta and milling and 1 or 2 projects for AGL. The AGL is a subsidiary of GSL. There are a few projects in oil and gas, which are under bidding for water. We have a few projects in Gujarat [indiscernible] corporation for Andaman development authority than any Yojna. So in Gujarat, we have some water projects and we had some water projects in Africa, which we are willing figure.
So you said Africa?
Yes.
I think 2018, you've done some online is similar than Yes, scenario. I cannot say company. And think that I think in 2018, 2019 deals, we have done some Tanzania, I guess. We had earlier now this is for Mozambican and exactly for sure what place for Africa.
Of course, last year also, we have exported some quantities to figure the current insister opportunity driven business in the case of export. So whenever we get the opportunity, our team took orders also and that acquisition has happened.
Okay. And on asset side, how are, let's say, how are the orders or maybe inquiries from chemical, pharma and all. Is it also a strong or it is soft?
So if we see the growth of the driving things in this year is stainless and some products in carbon, which will have half actually but the line pipe will remain flattish kind of growth. But yes, NSA grow some products in carbon steel will grow, which will help us be on the way. Okay. So is it.
Coming from these chemicals and pharma and on fertilizer?
Yes, it is coming from various industry pharma, chemical, fertilizer, food and dairy, sugar, automobile, of course, oil and gas remain the highest.
We have a next question from the line of [ Hiren Kumar Takala ] and individual investor.
Yes, sir. So I have 2 questions. One is on the export side. So as you mentioned, this year, the visibility seems to be a little bit muted. Do we have a medium-term thinking in terms of increasing the export share so that there's a little bit of cyclicality can be sort of mitigated?
Yes. We have our focus on exports. Our shop plant has just started. So we are -- it is slowly getting approved in various countries with geography. So our focus is on exports, but this is a project-based business. So if that is a project we and definitely then if it is within our reach, meaning if there's no anti-dumping in that country or in-country value to be provided Definitely, for most of the projects we are there.
Okay. Do we target some percentage medium term or we can't really say something like that?
This is one project can change the total dynamics like exports if you do an that product project that is maybe -- carbon steel is difficult to say. I mean because it's not -- it's not like many projects you are supplying to and small quantum. It is one project, which is INR 500 crores, INR 600 crores to INR 700 crores. So our dynamics on the export percentage is.
Okay. The second question No, I think my second question has been answered.
We have a next question from the line of [ Riya Mehta ] from Equitas Capital.
My question was in regards to since we are seeing that water segment is seeing some good traction. Apart from water, where do we see the demand coming in from if we are seeing lower demand for oil and gas and considering that the realization will also drop for the next year given the lower commodity prices. Where do we see the growth and confidence for the revenue visibility?
So as I answered the previous question, oil and gas line pipe is low, but oil and gas process price is still on the higher side, both for singles and carbon. So that is 1 sector where we see the growth. Then stainless utilization of capacities in extra and some better utilization in some will be tested.
We have a next question from the line of [ Pritesh Shea ] from Lucky Investment Managers.
Sir, just 2 follow-ups. One, what is the utilization that you would expect in the and spot finish assets, which was at 30% you mentioned in FY '23. This how much will you scale up to 50% to 60%? And my second question is, sir, on this expansion of asset, which you mentioned will add 1,500 tonnes, why that INR 170 crores, INR 180 crores of CapEx, and it's a low diameter but substantial in, is it the auto tubes basically?
No, no, no.
Then any reason why for INR 180 crores is just 1,500 tonnes cYou could tell us what will be the asset turn on this INR 180 crores.
One is to one or maybe a little less.
So what is this product actually? This is very high product. And what is the site? Is it less than 0.5 inch 1 inch?
Beginning from payment and onwards.
And it's not auto tube, right?
No, no. These are usually depends also in nuclear power plants also a number of applications are there.
We have a next question from the line of [ Aman Thadani ] from Solidarity Investment Managers.
Sir, I have just one follow-up question. Sir, since you said that the CGD sector is seeing some pressure. So I just wanted to throw some more color on it? Why is it under pressure since the entire sector is at such a nascent stage?
Yes. So what happened because of the war in Europe, the gas prices has tinted quite a bit. So -- and the government where CC was a priority sector for that in between change that sector, and they were not given APM. APM is a subsidiary at which the government will allocate to the CE companies also. -- and then they are to buy in the spot market. So the risk associated was quite high. So they are going slow, not that we are going slow at the moment will be cater investment.
Just end ratio, not the long-term story still impact right?
Yes. It seems to be a temporary issue.
Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to Mr. Sahil Sanghvi for closing comments. Over to you.
Yes. And just want to bank the management for patiently answering on the questions. You signed on a with Modak network. I would also like to thank the participants. Manoj, sir, would you like to give any closing comments?
Yes. Thank you, Sahil. Thank you, Vimal. Thank you all the participants. And sorry to be not answering some questions. we want to answer, but then the situation demands that whatever we as a group have decided not to divulge the new information, but it is not that we want to hide something. It is for the matter for the competition to catch up. With this, thank you, everyone, and sorry once again.
On behalf of Monarch Network Capital, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.