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Finportal: Okay, my good good day, ladies and gentlemen, and welcome to the innomit. Advanced materials. Limited earnings call

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Finportal: all participants are currently muted.

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Finportal: We'll open the floor for questions. After the presentation concludes, please note that the conference is being recorded

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Finportal: from Inuit Advanced Materials Limited. Today we have with us Mr. Vinay Chilakapati, managing director and chief executive officer, Mrs. Arita Chalakapati, chief financial officer. I now hand the meeting over to Mr. Vinay, managing director.

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Finportal: Thank you and over to you, Sir.

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Vinay Chilakapati: Yeah, thank you, Siddhi, for the introduction, and a warm welcome to all the investors, friends, and family

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Vinay Chilakapati: to this rpl representation of innomit advanced materials. Performance.

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Vinay Chilakapati: so is it visible? Is my screen visible to everyone.

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Vinay Chilakapati: Hello.

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saritha chilakapati: It's from my side.

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Vinay Chilakapati: Yeah. Should I go ahead with the presentation, Siddhi. Is anybody here? Should we wait for a few minutes?

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Vinay Chilakapati: Okay, so I'll go ahead with the presentation. So

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Vinay Chilakapati: once again a warm welcome to everyone on the

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Vinay Chilakapati: meeting online meeting. And

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Vinay Chilakapati: my name is Vinay Shargapati. I'm the managing director of Innerment, advanced materials, Hyderabad.

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Vinay Chilakapati: So we are an Msme. Based out of Hyderabad with 2 divisions.

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Vinay Chilakapati: one division into manufacture of metal powders, and the other division into

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Vinay Chilakapati: manufacturer of transav alloys. So both of these

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Vinay Chilakapati: divisions come under the gamut of powder, metallurgy. So we are in the space of specialty powder, metallurgy, both in terms of manufacturing, of metal powders

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Vinay Chilakapati: for speciality applications, and also components

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Vinay Chilakapati: pertaining to tungsen heavy airlines which are also a speciality in the parametology area.

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Vinay Chilakapati: So metal powders are fine particles of metal or alloys basically produced by

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Vinay Chilakapati: atomization techniques, you know, largely. Mostly there are many other techniques.

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Vinay Chilakapati: But bulk of these metal powders are being produced by atomization techniques. So we use water, air and gas atomization techniques for the manufacture of various metal powders

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Vinay Chilakapati: that we manufacture.

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Vinay Chilakapati: The company is manufacturing metal powders for the past 20 years.

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Vinay Chilakapati: and producing powders like copper bronze, brass, nickel

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Vinay Chilakapati: stainless steel and various of their alloys like, yeah, many brasses and bronzes.

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Vinay Chilakapati: So gathering to a variety of industrial applications.

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Vinay Chilakapati: So some of the applications include

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Vinay Chilakapati: automatology components, diamond tools, welding, brazing, chemical catalysts, surface coating, aesthetics

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Vinay Chilakapati: and the new new New Age manufacturing techniques like metal injection molding and editor manufacturing.

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Vinay Chilakapati: So

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Vinay Chilakapati: coming to the Oh.

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Vinay Chilakapati: Thompson heavy Alloy Division. This is a

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Vinay Chilakapati: material made through the polymetology technique, which means that the starting material for manufacturing of this

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Vinay Chilakapati: heavy alloy is a metal powder, a mix of metal powders largely tungsten

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Vinay Chilakapati: with some nickel and iron in it, and sometimes copper and cobalt.

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Vinay Chilakapati: so tungsten. Heavier lies are special, because their density is of the order of 18 gram per CC. Which is about 200 and per 250% of

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Vinay Chilakapati: steel so largely, its applications are,

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Vinay Chilakapati: making use of this particular characteristics of this material, which is the high density. So it finds application in

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Vinay Chilakapati: defense, aerospace, radiation, shielding, and other engineering applications.

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Vinay Chilakapati: So, coming to our metal powders, we have, many, many specialty metal powders.

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Vinay Chilakapati: and a lot of them are copper, and it's alloys like bronze, brass, and special grasses.

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Vinay Chilakapati: We also have iron, a variety of iron, copper, alloys.

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Vinay Chilakapati: tin powder, iron, powder, and stainless steam powders.

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Vinay Chilakapati: So these products largely go to autometology, industry, diamond tool industry, aesthetics, dyes and chemicals.

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Vinay Chilakapati: And you know, electronics, industry and also some difference into sometimes defense industry.

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Vinay Chilakapati: Coming to tungsten, heavy alloys, division.

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Vinay Chilakapati: We have products like pre fragmented

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Vinay Chilakapati: parts, like spheres, cuboids, cubes and rods, balance weights, tail masses, radiation shielding products like colummeters, camera bodies

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Vinay Chilakapati: and other applications, including medical aerospace and defense applications.

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Vinay Chilakapati: So we are actually catering to a a variety of end. User industries like,

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Vinay Chilakapati: end, user technologies like power, metallurgy, diamond tools, surface coatings.

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Vinay Chilakapati: petrochemicals, pharmaceuticals, water purification, automobiles, rock cutting and defense and ordinary factories.

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Vinay Chilakapati: So our core competencies are

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Vinay Chilakapati: that we are a experienced team with very senior people, assistant assisting us with both technology and management.

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Vinay Chilakapati: We are currently working on.

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Vinay Chilakapati: you know, various good practices like, you know, lean manufacturing digitization of the various processes

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Vinay Chilakapati: to enable visibility. And you know, analytics

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Vinay Chilakapati: so that we can improve our efficiencies and take this company further.

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Vinay Chilakapati: So we in the last 2 decades, we had actually build reputation with the

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Vinay Chilakapati: a lot of marquee clients both for our metal powder division and

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Vinay Chilakapati: our times. Heavy avoidation methyl powders. We are catering to the

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Vinay Chilakapati: biggest in the country. And the and many, many multinational companies. Also, they're also exporting a lot of our products abroad. And

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Vinay Chilakapati: we are, we are focusing on exports before our growth.

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Vinay Chilakapati: One second, excuse me.

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Vinay Chilakapati: So we have a diverse product range for both divisions. When we talk of metal powers. We are actually catering to a a diverse application, as I told you earlier, that from making components to surface coatings to welding, brazing, and diamond tools and aesthetics, and

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Vinay Chilakapati: retail manufacturing there are very. They're all very special applications for a very diverse range of industry.

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Vinay Chilakapati: We are an Iso 9,000 certified company, and then we continue to invest in

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Vinay Chilakapati: equipment and team for ensuring that.

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Vinay Chilakapati: We manufacture products according to standards, and then, delight our customers.

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Vinay Chilakapati: Same thing, we are actually committed to quality. And then in the last 2 days, we have actually got the reputation of producing

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Vinay Chilakapati: so powders and tense behavior, like components, you know, to satisfy and exceed customer demands.

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Vinay Chilakapati: So geographically, we are there across

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Vinay Chilakapati: So the

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Vinay Chilakapati: a world map, right from New Zealand, to Australia, to Southeast Asia, to everywhere in India and Middle East and Europe, and up to the Americas. So we are currently focusing on exports of our products.

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Vinay Chilakapati: We constantly invest in promoting our

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Vinay Chilakapati: through exhibitions. And we are actually going to initiate a big digital marketing initiative for

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Vinay Chilakapati: enhancing our brand, you know, through various digital marketing. And also, you know, trying to be present in many international exhibitions and conferences.

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Vinay Chilakapati: We also continuously work with the academicians, scientists

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Vinay Chilakapati: and experts. And we continue to, you know, collaborate with all these institutions to enhance our knowledge and also Co develop with

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Vinay Chilakapati: you know, these knowledge people and knowledge institutions.

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Vinay Chilakapati: That is how we constantly improve our knowledge base and then increase our

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Vinay Chilakapati: the customer base. And also you know, products.

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Vinay Chilakapati: So this is our brief history. We started off as an ancillary to Vh ramsurap way back, 1976.

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Vinay Chilakapati: And then, since 1976 to

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Vinay Chilakapati: almost like 1998, we were into manufacturing of

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Vinay Chilakapati: you know. You know, fabrication machining as a general engineering. It is so fabrication and machining and all that.

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Vinay Chilakapati: Since 1998 we got into manufacture of diamond tools.

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Vinay Chilakapati: In the year 2,004, we we quit both engineering and diamond tools, and then got into manufacturing of metal bar alli powers.

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Vinay Chilakapati: So since then we have been producing metal powders almost 2 decades now.

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Vinay Chilakapati: and in the year 2,010 we got into R&D of tungsten heavy alloys, and in the 2 year 2,000

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Vinay Chilakapati: 12 we set up a complete division for manufacture of Tanzanavia alloys.

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Vinay Chilakapati: So we work with many iits and

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Vinay Chilakapati: academic institutions in the country. We help students to do their project works and you know, help them with, you know, industry practices and industry requirements.

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Vinay Chilakapati: We in the 2 year 2,018, we actually

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Vinay Chilakapati: work with iit metros for developing tungsten. Sorry Ods alloys.

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Vinay Chilakapati: And one of the key thing about Ods Allies is that the starting metal is a gas atomized

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Vinay Chilakapati: powder. So we set up a whole acetomizer for

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Vinay Chilakapati: for development of Ods alloys. And then we continue to use these gas gasotomized powders for various other applications, like surface coatings, original manufacturing and going to develop metal injection powders for metal injection moldings.

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Vinay Chilakapati: In 2,019 we converted that Padmasri enterprises which was a partnership firm into a private limited company called Inomed

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Vinay Chilakapati: Advanced Materials private limited, but we have the nomad

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Vinay Chilakapati: brand name since 2,004. So you know, Matt was continuing, since 2,000, almost 2 decades even before

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Vinay Chilakapati: the company became privately limited with the name in them at advanced materials.

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Vinay Chilakapati: So we continue to work with the organizations like Arc, DM. Model

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Vinay Chilakapati: and other such knowledge institutions for developing speciality metals?

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Vinay Chilakapati: For for for various applications!

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Vinay Chilakapati: In 2,023 we converted, from a private Limited Company to a public limited company.

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Vinay Chilakapati: and in 2,024 in the month of September we we went for Ipo on the Nsc. Platform.

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Vinay Chilakapati: So before.

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Vinay Chilakapati: about since since since January of this year, we have moved to a place called Sultanpur. Before that we were actually operating from 3 different locations in Vhl, Ramshhand, Rapuram, industrial estate.

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Vinay Chilakapati: So now we have moved completely all the manufacturing operations to the purpose, built a factory in Sutanpur.

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Vinay Chilakapati: So it it it started operations from January of this year, and

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Vinay Chilakapati: most of most of the plant and equipment are settled. And

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Vinay Chilakapati: we are actually looking at a significant growth coming from.

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Vinay Chilakapati: you know, going to Sutanpur and also with the Ipo process.

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Vinay Chilakapati: We are looking at significant growth.

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Vinay Chilakapati: So this is a picture of our factory. So

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Vinay Chilakapati: this one in red is the metal powder division, and the one in green is the tungsten heavy alloy division.

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Vinay Chilakapati: So and this this whole place is

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Vinay Chilakapati: a fellow of a key. Ladies. Organization meant meant meant for Vicky, ladies, woman!

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Vinay Chilakapati: So

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Vinay Chilakapati: this is just by the outering road. If somebody knows Hyderabad we are, we are just by the outering road.

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Vinay Chilakapati: So some of the advantages that accrue out of actually moving to tungsten heavy alloys is that you know we have been operating in 3 different places

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Vinay Chilakapati: until the end of 2,000 2,023. Now we have built 2 purpose built

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Vinay Chilakapati: sheds for each division, one for metal powders and the other for tungsten heavy alloys.

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Vinay Chilakapati: so that gives us a lot of advantage with, you know, sharing common facilities like security, water power, and many other things that are related to the power metal industry.

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Vinay Chilakapati: So

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Vinay Chilakapati: so we are saving on power. Because earlier, we used to have 4 different connections. Now, which is a signal connection, and

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Vinay Chilakapati: see a lot of saving on power.

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Vinay Chilakapati: We also, since the the place is much bigger. And then we have actually, you know, purpose built

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Vinay Chilakapati: factory. So we have a lot of opportunity to

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Vinay Chilakapati: increase production and also safety and also quality. And all these things.

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Vinay Chilakapati: You know, we could operate these units with a lot of a lot of efficiency as compared to the

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Vinay Chilakapati: previous situation.

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Vinay Chilakapati: So we are also having savings on consumables and other

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Vinay Chilakapati: other facilities which both the divisions need. So

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Vinay Chilakapati: a lot of efficiencies getting built in

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Vinay Chilakapati: a lot of safety also has has been built in into the in the design of the whole plant, and the operations.

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Vinay Chilakapati: And so we are. We are going to leverage on all these benefits, you know, to take this company to a world class facility.

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Vinay Chilakapati: So after the Ipo since September, we have been focusing on sales because we already had a lot of products in our basket. And then we are, we are actually all out investing in marketing, and

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Vinay Chilakapati: you know, getting getting big orders. So we we are

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Vinay Chilakapati: happy to announce that we are getting some good response from

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Vinay Chilakapati: big customers both in India and outside of the country.

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Vinay Chilakapati: So our our focus is, largely on exports and

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Vinay Chilakapati: new products which are being imported into the country for metal powders we are looking at,

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Vinay Chilakapati: you know, bringing in products like, you know.

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Vinay Chilakapati: copper powder mixes for energy, industry, stainless steels for bottom industry.

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Vinay Chilakapati: Then,

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Vinay Chilakapati: you know, many metal powders for diamond tool industry. We are trying to collaborate with foreign experts and then coming up with new bonds for our existing customers, and also

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Vinay Chilakapati: new customers.

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Vinay Chilakapati: So in tungsten, heavy alloys. We got a major order from an Israeli company, a defense company. And we are, we are actually working on improving our

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Vinay Chilakapati: Capabilities and the knowledge and also quality to make the customers happy, and then come back to us with more products, you know, which otherwise, nobody in the country is producing.

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Vinay Chilakapati: So we have an order book of about 5 crores for Thompson, heavy alloys, and about

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Vinay Chilakapati: 2 crores for metal powers the 5 crores we should be able to do by the end of this year. And then there's 2 crores by the end of this month.

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Vinay Chilakapati: So they are recur recurring orders, and then we are continuing to work on, you know, increasing these

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Vinay Chilakapati: significantly.

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Vinay Chilakapati: Think I've already mentioned of this.

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Vinay Chilakapati: So there is a there is a there is a lot of

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Vinay Chilakapati: demand going up for transav alloys and metal powders in the country because

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Vinay Chilakapati: of, particularly Atman Nirbhar, and also a lot of private industries coming into manufacture of ammunition in the country.

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Vinay Chilakapati: So one of the biggest application for tungsten heavy alloys is pre fragments

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Vinay Chilakapati: for warheads on missiles and all those things. So India is also going to become a net, working hard to become a net exporter of ammunition to various other countries. So that is where we stand a good opportunity. And we would like to benefit from that.

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Vinay Chilakapati: since we have a 10 year standing in this space. So we would like to leverage on that. And then,

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Vinay Chilakapati: you know, grow, grow on those lines.

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Vinay Chilakapati: We are also working with

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Vinay Chilakapati: many companies for developing components for yeah.

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Vinay Chilakapati: for hydrolyze, hydrogen generators, hydrolyzers, basically parts for Pm parts for generating hydrogen.

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Vinay Chilakapati: So these are all critical parts which are required by the by, the

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Vinay Chilakapati: by, by the industry for manufacturing green hydrogen.

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Vinay Chilakapati: So a lot of effort by the Government of India, and also Indian industry is actually a going on for

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Vinay Chilakapati: manufacturing of green hydrogen.

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Vinay Chilakapati: So we are producing some critical components in that space. So we we hope

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Vinay Chilakapati: so that we will be able to

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Vinay Chilakapati: leverage on that for increasing our sales in in the near future.

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Vinay Chilakapati: So tungsten, heavy alloy is a a big industry across the world. But India has the limited

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Vinay Chilakapati: application, and it is growing so tungsten. Heavy alloy is again very, very niche in that. And

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Vinay Chilakapati: we are the early movers in that space. And

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Vinay Chilakapati: we, we continue to innovate and develop new products

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Vinay Chilakapati: for the customers. And these are actually products. As we speak, there are new products being developed.

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Vinay Chilakapati: and we are at the stage of where the the customers are actually developing products with us. And then we will be the natural supply partners for for those applications when they go for full manufacture.

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Vinay Chilakapati: So bulk of these applications are actually for defense.

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Vinay Chilakapati: And we have customers like pdl, Drdl, Np. Oil.

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Vinay Chilakapati: Then, Hal, many divisions of Hal.

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Vinay Chilakapati: and we are also exporting to Israel, and

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Vinay Chilakapati: we are also developing some special parts for Lca

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Vinay Chilakapati: and and many other advanced applications.

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Vinay Chilakapati: So research and development continue to be our

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Vinay Chilakapati: main strength. We continue to work with our customers to develop new products, new processes.

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Vinay Chilakapati: And we have a lot of knowledge people helping us do this. And then we also, take a support from individuals and institutions, from in everywhere, in India and outside of the country as well.

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Vinay Chilakapati: So we continue to develop new products as we continue to sell our existing

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Vinay Chilakapati: products in the space of powder metallurgy, both in both in the metal powders and also components from metal powders.

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Vinay Chilakapati: Strategy is basically initially will be through marketing the existing products we reach out to customers. We have appointed very senior people who in the industry, who understands this industry for the past 4 decades.

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Vinay Chilakapati: And they are reaching out to

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Vinay Chilakapati: various customers. And you know.

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Vinay Chilakapati: we are. We are actually trying to.

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Vinay Chilakapati: you know, sell the existing products. And we are also going to develop new products in the area of stainless steels, and

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Vinay Chilakapati: some specialty powders like

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Vinay Chilakapati: copper powder for infiltration, which these are all import substitutes. And then we are in an advanced stage, where we could actually give samples to the customers and then get their feedback, and then take it up from there for a regular production

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Vinay Chilakapati: in terms of Thompson. Heavy alloys we have invested on new equipment new equipment, and then producing larger powders, more strength, and all these things to be able to cater to various applications like defense. Medical sector, medical sector is one area which is actually catching up. And for cancer treatment. And all these things, you need a lot of Dharma radiation.

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Vinay Chilakapati: And this gamma radiation is actually contained using tungsten heavy alloys also collimated using tungsten heavy alloys. So this is one big area. The country is growing. And we have a lot of requirement for these cancer treatment machines which requires this radiation shielding material. And we are at the

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Vinay Chilakapati: at that doorstep, not trying to engage with people who are actually making machines for for these applications.

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Vinay Chilakapati: like, I told you, we are spread across the world.

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Vinay Chilakapati: so, and we continue to do that mostly in the West, in the Europe the Middle East and Americas.

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Vinay Chilakapati: So so these are our current countries wherever we are exporting.

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Vinay Chilakapati: So we continue to improve our processes. We are actually working on.

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Vinay Chilakapati: you know, lean manufacturing. And

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Vinay Chilakapati: you know, also, we we are investing in green technologies.

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Vinay Chilakapati: We are also going to invest in solar power. We are also going to

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Vinay Chilakapati: invest on digital marketing. We are also going to invest on digitization of all the processes

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Vinay Chilakapati: so that we could actually scale up

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Vinay Chilakapati: when we actually scale up, you know. We would like to have all our operations, you know.

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Vinay Chilakapati: Digitally monitored.

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Vinay Chilakapati: So we continue to improve improve our packaging also, and then, depending upon the customer's requirement. We continue to.

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Vinay Chilakapati: but, you know, have more options for you know, backing

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Vinay Chilakapati: depending upon the size of the customer and the application of the product. So we continue to improve on packaging.

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Vinay Chilakapati: And we are. We are working on. We are already an Iso 9,000 certified, and then we are also working on a standards for

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Vinay Chilakapati: for our division. And once we have the area as standards, we could actually reach out to very big customers like Boeing and Airbus and all those

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Vinay Chilakapati: big companies.

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Vinay Chilakapati: So we collaborate with various educational institutions, R&D institutions across the country and with individuals across the world. Who are experts in their field. And then we we develop processes and products for

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Vinay Chilakapati: pro processes and products for various applications in the space of parmetology.

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Vinay Chilakapati: Some of our customers for metal powders are Sundaram fasteners, hoganas atul.

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Vinay Chilakapati: you know. Metal stay, sharp metal ear, royal metal in our in our world, grand tools, circa.

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Vinay Chilakapati: gk, and and and we have more than 150 customers, and most about 50 to 60 are regular monthly buyers. So

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Vinay Chilakapati: we keep adding new customers.

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Vinay Chilakapati: We constantly fill the pipeline, and then somebody is working at looking at new applications. Somebody is working at reaching out to customers. Somebody somebody is working at producing samples, and somebody is constantly producing and supplying. So we have a well oiled

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Vinay Chilakapati: process now, and we are actually trying to digitize all these processes and hope to

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Vinay Chilakapati: scale up without much of a hassle.

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Vinay Chilakapati: Our trunks and heavy alloy customers include solar explosives, Keltron bark dynamics, Adonan.

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Vinay Chilakapati: Kiruluskar, petroleum, Drdo, Hal, Iai, Israel.

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Vinay Chilakapati: and Ard, and many many more. We are more than 40 customers for our Tungs and heavy alloys, and then we are adding new customers across the world.

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Vinay Chilakapati: So this is the top management. My, I'm the managing director.

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Vinay Chilakapati: this is Lakshmi Kantama. She's the director and promoter, and Sarita. She's the whole time director and the Cfo. Of the company.

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Vinay Chilakapati: The new addition to management is we have actually in in invested in

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Vinay Chilakapati: marketing and sales. So one Mr. Prakash, who was actually worked for 40 years in the Parliament industry with, the biggest names in the country and across the world. He's with us, helping us reach out to customers and then bringing his lot of knowledge

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Vinay Chilakapati: and experience into reaching out to customers and the product development. And of course,

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Vinay Chilakapati: you know, new new products.

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Vinay Chilakapati: This is a revenue breakdown of our

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Vinay Chilakapati: company from metal powders and

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Vinay Chilakapati: tons and heavy oils is about 75 to 20 2575 being metal powders, and 25 being tons and heavier voice.

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Vinay Chilakapati: This is a small view of the the utilization of the funds.

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Vinay Chilakapati: Yeah.

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Vinay Chilakapati: Srita, would you like to take over from here.

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saritha chilakapati: Yes, if you remember it.

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Vinay Chilakapati: Yeah.

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Vinay Chilakapati: you you want me to. You just tell me, and I'll I'll further or you want to. You want me to stop sharing, and you can share.

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saritha chilakapati: No, I think I'll I'll talk from here, and you can. Just there's just 3 4 slides left out. So very unique, everybody. And I'm the whole time Director and Cfo of Internet Advance meetings, Limited. I take care of the entire finance of the company. And

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saritha chilakapati: here I would like to dwell upon the usage of funds. So we had raised about 34.2 3 crores, and the funds were deployed in this fashion, where the working capital was about 5.7 crores. We gave some advances in the form for Capex, about 3 crores, and we actually cleared some debt which is part of the objects of the issue.

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saritha chilakapati: and of course, some general purpose, expenses and

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saritha chilakapati: and the issue expenses. So there are certain unutilized ones which are still lying in our bank account

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saritha chilakapati: as of 30th of September.

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saritha chilakapati: Can you change the slide when I

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saritha chilakapati: so these are the financials retrospective to our last financial year and a comparative statement.

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saritha chilakapati: and we can discuss on this one by one.

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saritha chilakapati: The next one, please.

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saritha chilakapati: Yeah. So I mean, this is the balance sheet detail, I think, which we have uploaded in the Nsc site as well.

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saritha chilakapati: which most of you can go through it the next one, please.

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saritha chilakapati: So these are the key ratios. So I think if you see, the revenue has increased.

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saritha chilakapati: we're just. We're comparing half yearly from last September 23 to September 24.th So the revenue has increased by 11%. The Ebitda has increased by almost 69%.

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saritha chilakapati: The bat has increased by 1, 64%

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saritha chilakapati: and the ebitda margin and the last one is actually pat margin. So both have actually significantly increased. And I can explain about that during the Q&A. 1 by one

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saritha chilakapati: next one, please.

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saritha chilakapati: So this is the analysis of of the financials that have been shared. And it's just talking. Some bullet points

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saritha chilakapati: the same thing that was put up in the bar graph. It's it's again written here

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saritha chilakapati: described here in words.

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saritha chilakapati: Thank you. And we can discuss on this. We're open for Q&A.

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Vinay Chilakapati: Yeah, thank you. And you may please ask questions, and then I'll be very happy to answer.

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Finportal: Thank you, siren, ma'am. We'll now begin the question and answer session. Please raise your hands to ask your question.

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saritha chilakapati: There are certain questions. There are few questions in the chat box. We can take up those also.

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saritha chilakapati: Okay, can I? Can I? answer the questions that are in the chat box raised by Miss

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saritha chilakapati: Miss Nupur Karnani.

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Finportal: Yes, ma'am, you can start, and you can answer the questions.

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saritha chilakapati: Okay? So the 1st question is, your top line has shown a growth of 24, and the pat has decreased by 8.9 here here. I would like to emphasize that our Ebitda has actually been significantly so that has its own counter effect on the pat. So that's the reason you will not find in proportion to the last

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saritha chilakapati: financial year.

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saritha chilakapati: That's the hafili. One doesn't relate to the entire whole year.

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saritha chilakapati: And the second question is how the funds raised by you and I are deployed in the business. I think that I have shared a slide, and if Miss Nupur needs it, we can share the slide with her again, which describes how the funds were deployed.

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saritha chilakapati: Hi! Do you want me to explain it again? I can just do that in a moment. Just a minute.

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saritha chilakapati: So our funds were utilized for working capital, where

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saritha chilakapati: the objects of the issue mentioned about 11.6 stores, and we had utilized

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saritha chilakapati: almost 50% of it.

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saritha chilakapati: The Capex. We had raised 7.8 8 crores from the objects of the issue, and we had given advances for almost 3 crores.

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saritha chilakapati: We've cleared some debt which was part of the objects which has which has been utilized completely. General purpose expenses which was mentioned in the objects which has been utilized

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saritha chilakapati: and issue related. That's to onboard us on the Nsc. Platform, so that has been replaced the unutilized fund. One of the question is, what what was? Where are the unutilized funds being used? It will go for the advance, the for the Capex and working capital which is already planned.

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saritha chilakapati: and

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saritha chilakapati: the company has not done any Capex after 31st March 24, th then how the depreciation has increased! Now here I would like to tell you that we had moved into our new facility at Ultampur in the month of December, and after we moved we started being operational only from January. So that's the reason. If you look at our balance, sheet, our plant and missionary, or any fixed assets

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saritha chilakapati: have been transferred to the balance sheet only during the last quarter, due to which the depreciation will not be much, because it's on pro rata basis.

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saritha chilakapati: But if you were to look at the balance sheet of this hedge for 1st half

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saritha chilakapati: the the depreciation, or even amortization cost is on the higher side. So that is why you would see a variance in that.

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saritha chilakapati: I hope I address this question, and

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saritha chilakapati: company has increased long term borrowings in the 6 months. Where have the so whatever borrowings the company has taken, it goes into working capital, so it will be reflecting in the form of current assets, and if you look at

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saritha chilakapati: balance, sheet or draw

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saritha chilakapati: whatever inventory and all it's in the form of by the stocks, or in the form of advances to creditors, or in the form of deposits.

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saritha chilakapati: Most of the thing went into inventory, I would say.

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saritha chilakapati: what audible companies expecting for the coming year. So we've as it's been presented in our presentation for metal powders. We have a recurring order of 2 crores per month.

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saritha chilakapati: I mean, it's it's recurring. So we don't have a long term order book for metal code.

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saritha chilakapati: and we're also working on. I mean, we we already have worked on it. And we anticipate this to increase in a much larger scale.

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saritha chilakapati: And we're also aggressively working on exports because most of our products are import substitutes, which means we have a potential to export.

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saritha chilakapati: and the tungsten heavy Alloys Division already has an order book for unexecuted order. Book of 5.8 course, which the the process has already begun, and

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saritha chilakapati: I mean they are under the process of production and inspection. All that. So by the end of this fy, we should be able to clear these 2 order books, which means for metal ponders a recurring order book of 2 2 pros per month. So the next 6 months you can count 2 into 6. That's 12,

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saritha chilakapati: and about 6, 4, 4 tons to heavy alloy. That's about 18. But beyond that there's more which we don't have a

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saritha chilakapati: we don't have a I would say an evidence right now. But yes, we know the work that's happening at the back end.

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saritha chilakapati: Now, in the last 6 months. Current assets have increased by 8.9 6 lakhs.

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saritha chilakapati: So which current assets are these include, okay, let me tell you that you know our Ipo had. You know, our listing had began on 18th of September, so, which means we received our funds

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saritha chilakapati: just before the listing, and since it was half yearly we didn't want to

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saritha chilakapati: deploy the funds immediately, so we park the funds in the form of Fd. So 8 crores was in the form of Fd. It is still in the form of Fd. In the bank, and we are judiciously using it. The rest of the 96 lakhs must be in the form of stock, or a little bit of advances to suppliers.

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saritha chilakapati: What do you plan to do with unutilized funds? Yes, obviously, it's Capex and working capital, but I consider that the path figure of half yearly only starting from

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saritha chilakapati: 1st October to 31st of March 24. Just a moment.

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Finportal: No, but, ma'am, I would suggest that you unmute yourself and ask your question. It would provide a better clarity.

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saritha chilakapati: Yeah, that would be better.

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Finportal: Be a.

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Finportal: But yeah, I feel when the people are looking.

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Nupur Karnani: Good evening, ma'am.

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saritha chilakapati: What do you mean this week.

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Nupur Karnani: The pad for the period ending 31st March 2024, was it was something?

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Nupur Karnani: Yeah, it was 80.

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Nupur Karnani: It was 21

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Nupur Karnani: 7.2 2 lakhs, and if I consider for the period 30, th September 2024, it's 170.5 6. So I have just considered, you know, half year I have not compared your pat with the previous year.

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Nupur Karnani: I've considered.

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saritha chilakapati: Understood.

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Nupur Karnani: Yeah, yeah.

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saritha chilakapati: So here you need to understand. Please consider the Ebitda also.

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Nupur Karnani: Like Africa has seen a growth. But what I want to ask is key

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Nupur Karnani: then, as per your company's business, it means interest, depreciation. These are the 2 heads, because of which your path has reduced like that.

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saritha chilakapati: Yes, definitely interest component. That I mean, interest components has definitely increased.

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saritha chilakapati: And I think that's for the half yearly basis. But the going forward the next 6 months we will not be having much of a interest impact on our P. And L, which will substantially increase our pat.

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Nupur Karnani: One more thing you said. Your company has done Capex. Okay, if we consider your balance sheet

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Nupur Karnani: for the period ended 31, st March 2024, the tangible assets were worth 1347.4 9 lakhs, and on 30th September 2024 the value of for tangible assets is 1360.6 1. Okay.

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saritha chilakapati: Yes, ma'am.

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00:42:40.040 --> 00:42:48.150
Nupur Karnani: Consider your balance sheet figures. Then there's no substantial increase in terms of Capex that has been done by your company.

331
00:42:49.550 --> 00:42:52.209
saritha chilakapati: It's in the form of advance to suppliers, ma'am.

332
00:42:52.740 --> 00:43:05.419
saritha chilakapati: It's in the process. So half of them are under. You know. We've given advances, and half of them are in the making. So one thing we need to understand here when it comes to Capex is not just. You know, we just buy it from the market

333
00:43:05.420 --> 00:43:29.390
saritha chilakapati: we also try to work with because we we come from a technology background. So for us, the cost is, you know, very important. The cost of manufacturing of the the cost of investment in Capex also is something we're very judicious about. So if you see, when I say advanced supplier, or whatever tangible assets that you're talking about. We're trying to make the asset at a minimalistic cost.

334
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Nupur Karnani: Okay.

335
00:43:32.370 --> 00:43:38.660
saritha chilakapati: So that's the reason, you know. You might find some of them intangible assets, and some of them in advance to suppliers.

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saritha chilakapati: And you know? So does that answer your question, or am I missing something?

337
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saritha chilakapati: Hello, Miss Napole!

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Nupur Karnani: Yeah, just just a moment. Just a moment.

339
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Nupur Karnani: Yeah, I got your point. So in your

340
00:43:59.410 --> 00:44:04.290
Nupur Karnani: were fixed assets. You have categorized your assets into 3 categories.

341
00:44:05.020 --> 00:44:05.670
saritha chilakapati: Yes.

342
00:44:05.670 --> 00:44:14.320
Nupur Karnani: So the amount of 1 1 9 1.2 5 lakhs. That is all about the advances given to the suppliers for fixed assets.

343
00:44:15.540 --> 00:44:17.670
saritha chilakapati: Most of it, ma'am, most of it. Yes.

344
00:44:18.230 --> 00:44:23.900
Nupur Karnani: Actually, I got confused because, you know, that has been shown under the heading of Loans and Advances.

345
00:44:24.530 --> 00:44:25.410
Nupur Karnani: So I.

346
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saritha chilakapati: Okay, if I may understand, so that even I can open my document, which year you're looking at.

347
00:44:31.970 --> 00:44:34.328
Nupur Karnani: 30, th September 2024.

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saritha chilakapati: Okay. At at which head, ma'am?

349
00:44:37.801 --> 00:44:43.519
Nupur Karnani: Under assets. If you look at non-current assets this second last week, loans and advances.

350
00:44:46.690 --> 00:44:48.230
saritha chilakapati: That's 2.7 7.

351
00:44:49.760 --> 00:44:52.199
Nupur Karnani: It's 1 1 9 1.2 5.

352
00:44:54.360 --> 00:44:55.980
saritha chilakapati: This this is for which year, huh?

353
00:44:57.090 --> 00:45:00.479
Nupur Karnani: Okay? 11, okay, one, second, 1191, just a minute.

354
00:45:00.960 --> 00:45:01.780
Nupur Karnani: Yeah.

355
00:45:29.500 --> 00:45:32.770
saritha chilakapati: Just a minute, ma'am. Let me open my software for a minute.

356
00:45:33.720 --> 00:45:34.340
Nupur Karnani: Yeah.

357
00:45:55.220 --> 00:45:57.790
saritha chilakapati: Can we write you specifically, ma'am.

358
00:45:59.860 --> 00:46:06.390
saritha chilakapati: about this breakup just? Or if you can hold on for a minute, I can clarify the whole thing. It will not take long for me.

359
00:46:06.770 --> 00:46:11.559
Nupur Karnani: It's all about your comfortability. You can reply later on. Also, no issues.

360
00:46:11.940 --> 00:46:13.000
Nupur Karnani: I'm fine customer.

361
00:46:13.000 --> 00:46:15.110
saritha chilakapati: I'll try to reply to you right away.

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00:46:15.500 --> 00:46:16.290
Nupur Karnani: Okay.

363
00:46:21.050 --> 00:46:25.600
Vinay Chilakapati: In the meanwhile, Mr. Sahil Raj.

364
00:46:26.310 --> 00:46:30.490
Vinay Chilakapati: Is there a technical question, or is it is it to do with finance.

365
00:46:32.440 --> 00:46:36.450
Vinay Chilakapati: Mr. Sagin? Raj? You have been waiting for some time.

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00:46:38.660 --> 00:46:39.060
Sahil Raj: Hello!

367
00:46:40.600 --> 00:46:42.390
Vinay Chilakapati: Yeah. Good evening. Sir.

368
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Sahil Raj: Good evening. I wanted to ask this capex that innomate is doing by when it is supposed to get operational, and how much will it increase our exist existing capacity.

369
00:46:55.490 --> 00:47:07.410
Vinay Chilakapati: Well, one of the key we are actually already investing on Capex. But one of the key things is a gas atomizer, which will take about 6 to 8 months

370
00:47:07.580 --> 00:47:10.660
Vinay Chilakapati: to get into full production.

371
00:47:11.180 --> 00:47:14.939
Vinay Chilakapati: So yeah, about 6 to 8 months.

372
00:47:15.220 --> 00:47:21.189
Vinay Chilakapati: The many, many things are happening. But one big thing is gas atomizer.

373
00:47:22.830 --> 00:47:28.039
Sahil Raj: And and by, how much will it increase our existing capacity

374
00:47:28.200 --> 00:47:30.839
Sahil Raj: if any approximate measure you have right now.

375
00:47:30.840 --> 00:47:49.219
Vinay Chilakapati: Well, gas atomizer powders are completely different powders with completely different application. So just as a measure of the tonnage we are looking at around around 30 to 40 tons of gas atomized powders per year.

376
00:47:49.746 --> 00:47:56.530
Vinay Chilakapati: So, maybe about but but but they're all very special powers, very, very, very special powers.

377
00:47:57.150 --> 00:48:01.139
Sahil Raj: So you might be already having some advanced inquiries for these powers. Right.

378
00:48:01.140 --> 00:48:07.880
Vinay Chilakapati: Yes, yes, but they need to be developed. We already have a 10 kg, gas atomizer.

379
00:48:07.940 --> 00:48:16.470
Vinay Chilakapati: And we are already giving samples in small ways. But the actual commercial production will need about 6 to 8 months

380
00:48:16.530 --> 00:48:21.120
Vinay Chilakapati: to set up the full thing. And then, you know, start commercial production.

381
00:48:22.030 --> 00:48:30.539
Sahil Raj: And how will this new production line improve our Ebitda margins maybe even improve our profit after tax, if you have any?

382
00:48:30.540 --> 00:48:31.860
Sahil Raj: He is, isn't it audio?

383
00:48:32.110 --> 00:48:41.170
Vinay Chilakapati: Definitely at least 3 to 4% more this thing will be there, because these are speciality powders and largely import substitutes.

384
00:48:42.580 --> 00:48:48.609
Sahil Raj: And so we have both export and import queries for means. Advance orders for this desktop.

385
00:48:48.610 --> 00:49:15.029
Vinay Chilakapati: Yes, yeah, initially, to begin with, it will be input substitution. So once you are strong at the home front, then it will be a natural export potential. We are already talking to various firms in the country and outside also. But it's all at the very basic level that is, at 10 kg, level. So once we are ready with the actual production setup, then we can actually go into sales full sales.

386
00:49:16.090 --> 00:49:22.049
Sahil Raj: And one thing I wanted to ask on the pricing level, I mean, how is the pricing decided in your business?

387
00:49:22.352 --> 00:49:27.710
Sahil Raj: Does the supplier, mandate it, or maybe you have some pricing power on your end. How does it work.

388
00:49:27.710 --> 00:49:34.770
Vinay Chilakapati: So so we have a mix of see? Essentially, we have 2 2 divisions. One is.

389
00:49:34.810 --> 00:49:38.279
Vinay Chilakapati: one is metal powders, and the other one is Thompson heavy alloys.

390
00:49:38.500 --> 00:49:45.993
Vinay Chilakapati: So when it comes to metal powders, we are actually dealing with a variety of metal powders where

391
00:49:47.040 --> 00:50:06.948
Vinay Chilakapati: there is for some there is about 2 to 3 people in the country competing for some there is only one, and for some there is nobody in the country, so it's only import competition. So we have an edge when it comes to absolute import substitute. But when it comes to an Indian thing it's going to be a market

392
00:50:08.580 --> 00:50:19.339
Vinay Chilakapati: determined thing. But we generally concentrate on you know, import substitutes and specialty where people would like to. You know, buy more

393
00:50:19.920 --> 00:50:26.480
Vinay Chilakapati: quality, material and all that. So yes, in some cases we have to fight in the market. In some cases we have an edge.

394
00:50:27.082 --> 00:50:30.409
Vinay Chilakapati: So it's a combination of many, and in tungsten heavy alloys.

395
00:50:30.420 --> 00:50:37.410
Vinay Chilakapati: Largely it. It is import substitution, particularly with Akhmanir Bhar, where

396
00:50:37.920 --> 00:50:51.780
Vinay Chilakapati: government of India decided not to buy anything from the neighbors. So we have a small protection there, and we are competing only with the Europeans and Americans. So we have a slight edge over there in the Tanzania organization.

397
00:50:52.790 --> 00:51:11.130
Sahil Raj: All right. Okay? And one thing on the margin aspect, when all of the 3 product lines of your company are into production, be it the metal power division, the gas to mine, and the tungsten heavy alloys. Which of them offer the better margins and profitability.

398
00:51:11.860 --> 00:51:17.729
Vinay Chilakapati: Tungsten. Heavy airlines is the best of the lot, but gas optimizers also.

399
00:51:18.178 --> 00:51:37.620
Vinay Chilakapati: Is a good one. So it it is a mix of high margin and high volume. So whenever you have a high margin then your volumes are low when you are, when you are having a higher volumes. Your margins are slightly less when it comes to volumes, but tungsten have. Your voice is the best.

400
00:51:38.940 --> 00:51:44.980
Sahil Raj: And any chance to scale this metal powder division, which is a recurring revenue of 2 crores.

401
00:51:45.350 --> 00:51:50.640
Vinay Chilakapati: Absolutely. We are constantly working on it. And that is what I was telling you about hiding.

402
00:51:50.640 --> 00:51:54.759
Vinay Chilakapati: hiring very senior people for the marketing department.

403
00:51:54.790 --> 00:52:03.669
Vinay Chilakapati: So they are already in talks with many customers, and then new import substitutes like stainless steel for power, metallurgy and infiltration copper, for

404
00:52:04.074 --> 00:52:25.209
Vinay Chilakapati: you know, infiltration application. These are all being imported to the country right now. So they're all in the very advanced stages of development. So we are going to give samples very soon, and then hopefully, that should convert into good orders. So that just to mention that metal powders is on a scale up spree.

405
00:52:26.320 --> 00:52:32.180
Sahil Raj: One thing you mentioned on that solar power plant. Could you kindly explain it in better terms?

406
00:52:32.180 --> 00:52:36.579
Vinay Chilakapati: So we have, like, yeah, like, you have seen on the presentation, 2 shared.

407
00:52:36.650 --> 00:52:41.680
Vinay Chilakapati: So we have about 20,000 square feet of rooftop.

408
00:52:41.770 --> 00:52:46.290
Vinay Chilakapati: So we are actually planning a 250 kilowatt solar power plant.

409
00:52:46.340 --> 00:52:49.340
Vinay Chilakapati: It is in the advanced stages of finalizing with the

410
00:52:49.795 --> 00:52:55.650
Vinay Chilakapati: vendor. So about 2 to 3 months we should be that the plan should be up and running.

411
00:52:56.590 --> 00:53:02.300
Sahil Raj: And how much targeted savings are you seeing from this solar power plant implementation.

412
00:53:02.300 --> 00:53:13.380
Vinay Chilakapati: So we should be saving on at least 25,000 units per month so at at a cost of about 8 to ₹9. The current cost

413
00:53:13.440 --> 00:53:23.580
Vinay Chilakapati: so about 6 to ₹7. That means about about a lack. Lakh and a half. Savings should be there after depreciation and accounting for all that finance costs.

414
00:53:24.955 --> 00:53:35.330
Sahil Raj: Okay, sir, thank you. My final question would be on the import and export percentage. I mean, the exports are currently higher or the imports in the revenue. Mix currently.

415
00:53:35.910 --> 00:53:39.760
Vinay Chilakapati: Imports or the domestic sales. What do you mean? Domestic sales? Is it.

416
00:53:39.760 --> 00:53:41.100
Sahil Raj: Yes, yes, yes, domestic sales.

417
00:53:41.100 --> 00:53:55.840
Vinay Chilakapati: Yeah, domestic sales. So domestic sales is a large portion right now, about almost 85 to 90%. But our efforts is on the export. So, going forward, you will see the exports increasing from wherever currently we are.

418
00:53:57.570 --> 00:53:59.669
Sahil Raj: Okay, sir. Okay, thank you very much for answering. Thank you.

419
00:53:59.670 --> 00:54:01.739
Vinay Chilakapati: Thank you, sir. Thank you very much for your time.

420
00:54:04.423 --> 00:54:08.410
saritha chilakapati: Miss Nupur, can I answer your call? Your query.

421
00:54:08.410 --> 00:54:09.490
Nupur Karnani: Sure, ma'am.

422
00:54:09.910 --> 00:54:37.759
saritha chilakapati: Yeah. So I've gone through the data. So these are, you know, of course, capital advances given to our suppliers. Some have been, you know, like, we've been building our unit for the past literally 4 years. The purpose built one. So some advances have been given for that in that a part of it was for certain equipments and certain equipments we've been building it. So these have been either capital advances or advances for long term contracts.

423
00:54:37.920 --> 00:54:40.719
saritha chilakapati: so that is the nature of the expenditure.

424
00:54:41.360 --> 00:54:45.250
Nupur Karnani: Okay? So you said one more thing that you have

425
00:54:45.290 --> 00:54:49.779
Nupur Karnani: raised long term borrowings for the purpose of working capital right?

426
00:54:50.330 --> 00:54:51.000
saritha chilakapati: Hmm.

427
00:54:51.440 --> 00:54:58.117
Nupur Karnani: So I just want to ask one thing that in your red herring prospectus you allocated

428
00:54:58.560 --> 00:55:03.469
Nupur Karnani: 1,159.7 0 lakhs for your working capital requirements.

429
00:55:03.890 --> 00:55:04.700
saritha chilakapati: Yes, ma'am.

430
00:55:05.020 --> 00:55:13.339
Nupur Karnani: Okay? And you have utilized as per your current the pitch deck that you presented. Yeah.

431
00:55:13.400 --> 00:55:18.889
Nupur Karnani: that you have allocated 572.7 4 lakhs for your working capital.

432
00:55:19.390 --> 00:55:20.160
saritha chilakapati: Right now.

433
00:55:20.340 --> 00:55:31.999
Nupur Karnani: You have unutilized funds of 1,072.1 6 lakhs. Then I just want to ask you that when we are having Ipo proceeds unutilized, and

434
00:55:32.270 --> 00:55:43.359
Nupur Karnani: then why we are not using those proceeds, and instead of that, we are raising long term borrowings, which are increasing the finance cost of the company. Lowering the pat margin.

435
00:55:45.160 --> 00:55:58.876
saritha chilakapati: See, see, they, by end of September, was too little time for us to decide on this, so we just parked it in the sense. What you're saying is right, you know, taking long term funds and utilizing it in the in the

436
00:55:59.770 --> 00:56:11.069
saritha chilakapati: I mean, the funding should have been the other way. But you know, I think, whatever query you've raised which it will be corrected in the in the next 1. 2 months.

437
00:56:12.090 --> 00:56:13.922
Nupur Karnani: And one more thing.

438
00:56:14.770 --> 00:56:21.729
Nupur Karnani: normally, if we want to fund our working capital, we always consider, or we always go for short term borrowings.

439
00:56:23.230 --> 00:56:32.100
Nupur Karnani: Long term points are normally, you know, we raise this fund for either acquiring some asset or again repay some. You know liability.

440
00:56:32.100 --> 00:56:33.220
saritha chilakapati: That sure.

441
00:56:33.220 --> 00:56:37.260
Nupur Karnani: Because long term borrowings carry high rate of interest.

442
00:56:37.530 --> 00:56:39.577
Nupur Karnani: Right? Working capital

443
00:56:40.480 --> 00:56:59.369
Nupur Karnani: You could have considered short term borrowings also, because short term borrowings are normally meant for. You know our working capital needs, then, in that very case, why your company has reduced its short term borrowings. It has repaid its short term, borrowing somewhere around 410 lakhs.

444
00:57:00.740 --> 00:57:02.040
saritha chilakapati: And simultaneously, okay.

445
00:57:02.040 --> 00:57:06.460
Nupur Karnani: By that amount your long term borrowings have increased totally.

446
00:57:06.730 --> 00:57:07.260
Nupur Karnani: Why.

447
00:57:07.260 --> 00:57:11.670
Vinay Chilakapati: No, no, we will, we will. We will clear the long term borrowings very soon, ma'am.

448
00:57:12.035 --> 00:57:33.509
Vinay Chilakapati: Yeah, because we didn't have time, because, see what you see is, you know, end of September, which means we hardly had less than 2 weeks, for all that. So it'll it'll all get corrected definitely. We don't want to pay more interest to Banks now that we have funds. So yeah, all that will be clear. Set right very soon.

449
00:57:34.530 --> 00:57:35.630
Nupur Karnani: Okay. One more.

450
00:57:35.630 --> 00:57:38.859
Vinay Chilakapati: Yeah, your point is well taken. Your point is well taken, absolutely.

451
00:57:39.180 --> 00:57:55.120
Nupur Karnani: Thank you. There's 1 more thing. As per your rhp the tungsten heavy alloys. You're dealing in 2 products. One is alloys. And second one is, yeah. So in tungsten heavy alloys, you don't have any competitor right?

452
00:57:55.260 --> 00:57:57.369
Nupur Karnani: That was mentioned in the Rhp.

453
00:57:58.360 --> 00:57:59.180
Nupur Karnani: No complaint.

454
00:57:59.950 --> 00:58:02.440
Vinay Chilakapati: You're you're right, you're right. Yes, yes.

455
00:58:02.440 --> 00:58:04.500
Vinay Chilakapati: we are the only only private sector in the country.

456
00:58:04.500 --> 00:58:05.250
Nupur Karnani: Do that.

457
00:58:07.240 --> 00:58:13.600
Nupur Karnani: Yes. So in that. In that scenario you have the power of, you know, fixing the pricing thing. You have

458
00:58:14.270 --> 00:58:19.370
Nupur Karnani: the bargaining power your company has, in terms of that thing so.

459
00:58:19.370 --> 00:58:28.570
Vinay Chilakapati: Yeah, but but there is a limit to everything, ma'am, because there is always there is a see. Ultimately the customer also has to sell his product right?

460
00:58:28.670 --> 00:58:38.430
Vinay Chilakapati: So even if it is this defense, they have to be competitive, so ultimately, maybe slightly more. But it is not a runaway margin. It is not that we dictate something.

461
00:58:38.590 --> 00:58:39.800
Nupur Karnani: Hmm, hmm.

462
00:58:39.800 --> 00:58:44.399
Vinay Chilakapati: So always there is a. There is a China, there is a government of India enterprise.

463
00:58:44.580 --> 00:58:48.230
Vinay Chilakapati: so these are all relative ones. These are.

464
00:58:48.230 --> 00:58:48.610
Nupur Karnani: Yeah.

465
00:58:49.940 --> 00:58:55.495
Vinay Chilakapati: Yeah, so we can. We can't say that it's going to benefit the company, even though having monopoly in that

466
00:58:55.760 --> 00:59:05.199
Vinay Chilakapati: absolutely, we are benefited. That's why I'm saying, trans, give you slightly margin. But that doesn't mean you start to dictate terms. So we are at a component level.

467
00:59:05.618 --> 00:59:18.321
Vinay Chilakapati: So definitely. These are all high end technologies. And you know very few people in the country or even in the world. They are there to do these things. But again, that doesn't mean that there is a runaway thing it's not like.

468
00:59:18.967 --> 00:59:28.150
Vinay Chilakapati: you know, a pharmaceutical industry where your bomb cost is 10%. And you're selling something at ₹100 something like that. I'm just giving you a.

469
00:59:28.150 --> 00:59:28.930
Nupur Karnani: Yeah, yeah.

470
00:59:28.930 --> 00:59:30.270
Vinay Chilakapati: Analogy. Yeah. Yeah.

471
00:59:31.607 --> 00:59:32.950
Nupur Karnani: One more thing.

472
00:59:33.030 --> 00:59:34.200
Nupur Karnani: Oh.

473
00:59:34.290 --> 00:59:42.709
Nupur Karnani: you said that. Ha, ma'am, you were saying something about loans and advances. We ship, you know. There was a figure 1.9 1.2 5.

474
00:59:42.710 --> 00:59:43.970
saritha chilakapati: 7 nineties. Yeah.

475
00:59:43.970 --> 00:59:44.580
Nupur Karnani: Yeah, yeah.

476
00:59:45.200 --> 00:59:51.659
Nupur Karnani: So that is all about the advances given to the suppliers for acquiring capital assets.

477
00:59:51.660 --> 00:59:52.849
saritha chilakapati: Yes, yes, ma'am.

478
00:59:53.340 --> 00:59:59.409
Nupur Karnani: Okay, that means the heading was wrong loans and advances. I thought company has given some notes.

479
00:59:59.920 --> 01:00:00.889
saritha chilakapati: No, no.

480
01:00:01.480 --> 01:00:04.789
Nupur Karnani: Okay, so just want to ask one more thing.

481
01:00:04.920 --> 01:00:13.540
Nupur Karnani: Oh, this this is a technical question whether depreciation can be charged on this thing.

482
01:00:13.950 --> 01:00:19.260
saritha chilakapati: I'm bit confused about this advances when you advances.

483
01:00:19.260 --> 01:00:19.920
saritha chilakapati: Love it.

484
01:00:20.590 --> 01:00:31.079
saritha chilakapati: Yes, yes, when, when, when the transaction is closed, in the sense when when the equipment has been delivered it'll become an asset. And again, yeah, it'll add toward appreciation.

485
01:00:31.650 --> 01:00:35.849
Nupur Karnani: And whether you have charged depreciation on capital work in progress as well.

486
01:00:36.530 --> 01:00:37.380
saritha chilakapati: No.

487
01:00:38.270 --> 01:00:42.939
Nupur Karnani: No, you've just charged appreciation on tangible assets and advances.

488
01:00:43.800 --> 01:00:49.439
saritha chilakapati: Not an advance. Also, we can't charge in advances right? It's only on tangible assets.

489
01:00:49.680 --> 01:00:56.870
Nupur Karnani: Then how your depreciation has increased that too much? That was my question. Actually, your depreciation has seen a surge.

490
01:00:56.900 --> 01:01:00.139
Nupur Karnani: If you're not charging appreciation on these things.

491
01:01:01.160 --> 01:01:06.759
saritha chilakapati: Oh, see one thing you need to notice in the intangible assets we have something called a sweat equity

492
01:01:06.810 --> 01:01:08.379
saritha chilakapati: which had to be charged.

493
01:01:08.790 --> 01:01:10.119
saritha chilakapati: I have the.

494
01:01:10.120 --> 01:01:10.800
Nupur Karnani: 6.

495
01:01:12.030 --> 01:01:12.710
saritha chilakapati: Yes.

496
01:01:13.150 --> 01:01:20.000
Nupur Karnani: In the intangible assets. I just have a figure. There's no such note or something. It's 1 95.2 3.

497
01:01:21.120 --> 01:01:21.920
saritha chilakapati: Yes, ma'am.

498
01:01:23.210 --> 01:01:28.000
Nupur Karnani: So you're saying, and this intangible asset is in the form of shared equity shares.

499
01:01:29.970 --> 01:01:33.979
saritha chilakapati: Yes, ma'am, it's no, I think. See, we were charged on trademark.

500
01:01:34.630 --> 01:01:35.040
saritha chilakapati: Yeah, yeah.

501
01:01:35.040 --> 01:01:37.422
saritha chilakapati: 90. Yeah. So I think about

502
01:01:37.820 --> 01:01:45.530
Nupur Karnani: These intangible assets are in the form of trademark. It's not sweat equity, because sweat, equity will not form part of intangible assets.

503
01:01:46.500 --> 01:01:48.359
Nupur Karnani: It was one part of equity.

504
01:01:48.840 --> 01:02:00.620
saritha chilakapati: So sweat equity was charged, it will show in the employees expense. Map. About 35 lakhs was charged. Employee benefits, expenses 33.5 1.

505
01:02:02.890 --> 01:02:04.840
saritha chilakapati: If you can check the P. And L.

506
01:02:07.150 --> 01:02:12.989
Nupur Karnani: Actually, I just have. You know the last, the final figure of 1 32.1 3 lakhs.

507
01:02:12.990 --> 01:02:13.480
saritha chilakapati: Exactly.

508
01:02:13.480 --> 01:02:13.860
Nupur Karnani: I see.

509
01:02:13.860 --> 01:02:17.159
saritha chilakapati: So 1, 32 includes the sweat equity component of

510
01:02:18.424 --> 01:02:28.029
Nupur Karnani: Fair enough that that will be included in that. My only question was, you have charged depreciation and amortization on tangible and intangible assets. Okay.

511
01:02:28.030 --> 01:02:29.390
saritha chilakapati: Yes, yes.

512
01:02:29.640 --> 01:02:30.560
Nupur Karnani: So you have not.

513
01:02:31.200 --> 01:02:35.460
Nupur Karnani: So you have not charged anything on advances given to suppliers, and.

514
01:02:35.460 --> 01:02:35.810
saritha chilakapati: No.

515
01:02:35.810 --> 01:02:37.320
Nupur Karnani: Capital work, in progress.

516
01:02:37.900 --> 01:02:39.580
saritha chilakapati: No, not at all.

517
01:02:41.200 --> 01:02:46.200
Nupur Karnani: 2 tangible assets. If I consider the last period.

518
01:02:46.690 --> 01:02:47.280
saritha chilakapati: Hmm.

519
01:02:47.280 --> 01:02:55.299
Nupur Karnani: At this period neither the tangible assets nor intangible assets have increased, but the amount of depreciation has increased.

520
01:02:56.430 --> 01:02:57.380
Nupur Karnani: I must.

521
01:02:57.380 --> 01:03:02.210
saritha chilakapati: Same as exactly so. What what you're saying I understand, because the tangents

522
01:03:02.220 --> 01:03:08.080
saritha chilakapati: where we were in working progress entire of last year, so that.

523
01:03:08.080 --> 01:03:08.420
Nupur Karnani: That's fine!

524
01:03:08.420 --> 01:03:11.969
saritha chilakapati: Last last year, when you, when you see the closing figure.

525
01:03:12.130 --> 01:03:15.330
saritha chilakapati: I just compare it with last half yearly.

526
01:03:15.780 --> 01:03:23.529
saritha chilakapati: see the tangible assets, as on 21, st March 24, th and as on September 30, th 2023,

527
01:03:24.040 --> 01:03:27.800
saritha chilakapati: so you'll find that they're not many. They most of them are in working progress.

528
01:03:29.540 --> 01:03:36.159
Nupur Karnani: Actually, your Pdf. Is that yearly basis. Only I'm not having that happily figured.

529
01:03:36.160 --> 01:03:58.420
saritha chilakapati: If if needed. We'll share it with you, ma'am. So if you see they were actually you know they can. They were converted to asset only during the last quarter. So that's the reason you will not find much of depreciation, and what you said is a valid point, because at at the end of the financial year. You have some asset, and it was not charged last year, but it is charged now. So why? It has increased because

530
01:03:58.450 --> 01:04:05.969
saritha chilakapati: a significant amount, as of tangible assets have been put to use. That's how our unit is operational. Now.

531
01:04:06.940 --> 01:04:08.839
Vinay Chilakapati: Okay. Got it.

532
01:04:08.840 --> 01:04:14.620
Vinay Chilakapati: The new unit, the new unit, the land, the building, all the power. Everything which is a

533
01:04:15.750 --> 01:04:27.270
Vinay Chilakapati: has been has been billed at the end of last financial year. So you cannot actually charge full depreciation for that year. So that's how it is.

534
01:04:28.310 --> 01:04:28.670
saritha chilakapati: And it.

535
01:04:28.670 --> 01:04:29.069
Vinay Chilakapati: Did you just.

536
01:04:29.070 --> 01:04:31.969
saritha chilakapati: Only for the last last quarter, because

537
01:04:32.330 --> 01:04:37.260
saritha chilakapati: only end of democracy. End of December is when we actually got all the.

538
01:04:37.260 --> 01:04:37.680
Vinay Chilakapati: License.

539
01:04:37.680 --> 01:04:41.820
saritha chilakapati: When we actually moved. And you know, it was operational only from January.

540
01:04:41.870 --> 01:04:47.089
saritha chilakapati: So that's the reason the amount is really, really in. Comparatively, it's much lower.

541
01:04:47.140 --> 01:04:51.349
saritha chilakapati: but the value of asset is on the higher side. When you say for last year.

542
01:04:51.890 --> 01:04:52.630
Nupur Karnani: Yes.

543
01:04:54.280 --> 01:04:55.910
Vinay Chilakapati: Does that answer your question?

544
01:04:56.390 --> 01:04:58.370
Nupur Karnani: Yeah, thank, you.

545
01:05:01.741 --> 01:05:04.540
Finportal: We'll take the next question from Mr. Sahil. Raj.

546
01:05:06.555 --> 01:05:07.270
Sahil Raj: Hello!

547
01:05:07.270 --> 01:05:09.089
Vinay Chilakapati: Yeah, yeah, sir. Go ahead, sir.

548
01:05:09.416 --> 01:05:20.200
Sahil Raj: My question was that in the P. And L. Statement there is a note written in the lower end that output Gst was included in revenue from operations in previous periods, and

549
01:05:20.270 --> 01:05:25.030
Sahil Raj: has been shown in other expenses. So, ma'am, kindly, can you explain this adjustment?

550
01:05:25.630 --> 01:05:31.747
saritha chilakapati: Oh, yes, sir, so actually in our rhp and all we had actually given Ross

551
01:05:32.497 --> 01:05:47.530
saritha chilakapati: gross sales data and all that. So we always try to show a larger number, because that is how we were used to at some point of time. But we thought, we will correct it at you know, at some point we have to correct it. So this was used as an opportunity, and that's why the note has been put up that way.

552
01:05:48.520 --> 01:05:57.019
Sahil Raj: So going forward. These figures that are mentioned in the results recently declared are the going norm right? This will be the going forward.

553
01:05:57.020 --> 01:06:02.500
saritha chilakapati: Yeah, I think it's it's a standardized format which we actually did not know. Frankly. And we have correct.

554
01:06:03.410 --> 01:06:18.199
Sahil Raj: And one thing on the working capital cycle. How long does our working capital cycle takes me? How long we get the money back from our trade receivables, or maybe we pay the pay, our trade trade payables. How long does it take.

555
01:06:18.870 --> 01:06:28.628
saritha chilakapati: Okay, so typically for a metal powder division, the working capital ranges because metal powders is a very small cycle anywhere between 3 weeks to Max.

556
01:06:29.000 --> 01:06:31.760
saritha chilakapati: Max, I would say 10 weeks at the most.

557
01:06:31.890 --> 01:06:49.799
saritha chilakapati: at the most. That's on the that's on the the quicker side would be 3 weeks, but on the longer cycle would be about 10 weeks. But when it comes to taxable, heavy alloys it takes anywhere between, you know, from receiving the order to executing order. It's between 3 to 9 months.

558
01:06:50.250 --> 01:06:51.790
saritha chilakapati: It's a long cycle.

559
01:06:51.940 --> 01:07:02.550
saritha chilakapati: because the inspections and and what is that of the approvals and all they do take time, and of course, you know, at every stage there is inspection. That is where the delays.

560
01:07:02.940 --> 01:07:08.219
saritha chilakapati: So both both the both divisions have different cycles altogether.

561
01:07:09.510 --> 01:07:15.619
Sahil Raj: And this is the normal operating cycle. Right? It mean, it generally takes 6 to 9 months for this.

562
01:07:16.340 --> 01:07:16.930
Sahil Raj: Yeah, for.

563
01:07:16.930 --> 01:07:23.789
saritha chilakapati: Junction. Yes, 3 to 9 months, some some of some of them close within 3 months. But typically it's between 3 to 9 months.

564
01:07:25.180 --> 01:07:27.150
Sahil Raj: Alright, ma'am, thank you very much. Thank you.

565
01:07:27.150 --> 01:07:27.870
saritha chilakapati: Thank you

566
01:07:33.340 --> 01:07:34.630
saritha chilakapati: any more questions, sir.

567
01:07:34.630 --> 01:07:35.200
Vinay Chilakapati: That's.

568
01:07:38.310 --> 01:07:43.149
Finportal: I would now like to hand over the conference to Mr. Vanessa for closing comments.

569
01:07:45.130 --> 01:07:50.548
Vinay Chilakapati: Well, thank you. Ladies and gentlemen, investors, friends and family

570
01:07:51.520 --> 01:08:01.889
Vinay Chilakapati: for being part of this discussion, and we would continue to seek your support. And we would definitely work hard

571
01:08:02.827 --> 01:08:06.649
Vinay Chilakapati: towards meeting your expectations. Thank you very much.

572
01:08:08.860 --> 01:08:15.079
Finportal: On behalf of phenomet, advanced material, limited. I thank you all for joining us, and you may now disconnect from the meeting.

573
01:08:18.750 --> 01:08:20.509
saritha chilakapati: Thank you. Everyone. Thank you.

574
01:08:21.109 --> 01:08:21.909
Nupur Karnani: Thank you.


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