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Question 1: What is the tangible evidence for the conversion pipeline, especially for moving from forged to hi-chrome? Can you mention the top conversion opportunities in your pipeline?

Kunal Shah: We have a major order from an important customer in Chile for about $33 million, which involves 22,000 to 23,000 tons over 18 months"”this is direct evidence of conversion. Additionally, we have conducted successful trials in 10-12 significant mines, resulting in recognizable benefits. We are currently at an advanced trial stage with larger mines, expecting outcomes by December and January. Further announcements may follow based on these trials.

Question 2: What is the current utilization rate for the new 75,000-ton middle liner capacity, and when do you expect it to reach breakeven?

Kunal Shah: The middle liners are part of an integrated offering; it's challenging to provide a straightforward utilization figure. This capacity serves as a foundation for significant process improvements, and our overall guidance will encompass all mining products, including liners and grinding media. We will provide clearer visibility on performance numbers once we have enough data to support our projections.

Question 3: Given a 4.6 lakh ton per annum capacity, what is the expected utilization in the next 2-3 years?

Sanjay Majumdar: Currently, our utilization is around 55%-60%. We project that we can increase utilization to 70%-80% long-term. This gradual rise will depend on long-term customer relationships and our ability to maintain adequate capacity for future customer demands in a capital-intensive industry. Thus, our capital expenditure will ensure we are always a step ahead in capacity.

Question 4: For the recent Chile order, when can we expect to see a volume uptake in this order?

Sanjay Majumdar: We anticipate the offtake to start in Q4, with an expected shipment of around 3,000 to 4,000 tons by then. The order spans 18 months, and the shipments will vary based on customer requirements, averaging approximately 12,000 to 15,000 tons annually.

Question 5: Given the recent Chile order, how will realization compare to the average realization of Rs. 163?

Sanjay Majumdar: This order isn't directly comparable to our average blended realization since it comprises lower-end grinding media, which typically ranges from Rs. 100-Rs. 110 per kilo up to Rs. 300-Rs. 350 for liners. We only share the blended average realization, which fluctuates based on our various products.

Question 6: What kind of CAPEX can we expect in the next two years?

Sanjay Majumdar: We have guided for approximately Rs. 180 crores this year and have incurred about Rs. 40 crores so far. On average, we expect around Rs. 150 crores in annual CAPEX, which will include investments in renewable solar projects and new facilities in Ghana and China.

Question 7: What role does the recent acquisition of your competitor, Molycop, have in your business strategy?

Kunal Shah: While Molycop's acquisition may change dynamics, our unique offering and focus on comprehensive solutions set us apart in the market. Our strength lies not just in product availability but in providing engineered solutions, which we believe hesitates their competitive edge.

Question 8: What kind of growth in volume are you expecting for FY'27?

Sanjay Majumdar: We are targeting a minimum volume growth of 30,000 tons for FY'27 due to recent initiatives and ongoing customer acquisitions. We will provide more detailed guidance once we receive outcomes from ongoing trial phases at significant mining sites.

Question 9: Can you articulate the future potential for hi-chrome penetration in regions like Chile, particularly if better opportunities arise?

Kunal Shah: The penetration for hi-chrome in Chile is minimal; the potential market is substantial, with forged players currently selling 700,000-800,000 tons. Targeted marketing and better demonstration of our solution's efficiency could lead to solid growth potential in the coming years.

Question 10: Will the tariffs imposed in the U.S. still affect your operations and volume trends?

Kunal Shah: Yes, our customers continue purchasing despite the tariffs, as they are covering the costs. We are aware of the challenges surrounding negotiations with certain clients. However, we maintain our sales strategy with those ready to pay the tariffs, enabling us to continue our operations smoothly.