MMP Industries (NSE:MMP) Q2 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to MMP Industries Limited Q2 and H1 FY 'twenty seven Earnings Conference Call. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Please note this conference is being recorded. I now hand the conference over to Mr. Akhilesh Gandhi from Stellar Investor Relations. Thank you, and over to you, Mr. Gandhi. Thank you, Nasmin. Good afternoon, everyone. I, on behalf of Stellar Investor Relations, welcome you all to MMP Industries q two and h one FY twenty seven earnings conference call.

0:53 We shall be sharing the key operating and financial highlights for the second quarter and half year ended on 09/30/2026. Today, we have with us the management team of MMP Industries, Mainly, we have mister Arunji Bandari. He's our managing director. With him, we have mister Mayanki Bandari. He's our director. And along with them, we also have mister Suraj Gandhiwal. He's our chief financial officer. But before we begin, I would like to state that this call may contain some of the forward looking statements, which are completely based upon the company's beliefs and expectations as of today. The statements made in today's call are not a guarantee of future performance and also involve unforeseen risks and uncertainties.

1:43 The company also undertakes no obligation to update any forward looking statements to reflect developments that occur after the statement is made. Documents relating to the company's financial performance, including the investor presentation have also been uploaded in the stock exchange. With that, I now invite Mr. Arunji Bandari to state his opening remarks on the company's performance for the second quarter. And after that, once the opening remarks are completed, we'll open the floor for Q and A session. Thank you, and over to you, sir. Thank you, Akilesh. Thank you very much for arranging this earnings call on behalf of MMP Industries Limited, the Q2 as well as the H1 FY 'twenty seven earnings conference call.

2:34 Good afternoon, everyone. Welcome to this earnings call. We are pleased to connect with our investors, analysts and stakeholders once again. Today, I will share an overview of our business performance, key operational developments and growth priorities, following which our CFO, Mr. Sharath Khandelwal, will take you through the financial performance. Over the last four decades, MMPIL has evolved from an aluminum order manufacturer into a diversified business, spanning aluminum powders, aluminum foils, conductors and cables.

3:24 We are now diversifying into polymer insulators. Our focus remains on strengthening our core businesses, increasing value addition and expanding our presence across the industrial and power transmission infrastructure sectors. The first half of FY 'twenty seven has been encouraging with strong performance across our core businesses, supported by healthy demand, robust exports and improved plant utilization. Let me take you through the key developments across our businesses. Beginning with aluminum powders, which continues to be the foundation of our business, we witnessed strong performance during H1 FY 'twenty seven, supported by healthy domestic demand, robust exports and improved plant capacity working.

4:24 During Q2 FY 'twenty seven, we successfully executed export orders at a very high scale despite the quarter traditionally witnessing seasonal moderation in business activity due to the monsoons. Building on this momentum, we expect exports to further strengthen in H2 FY 'twenty seven. Our continued focus on higher value added products and optimized product mix and economies of scale is expected to support improved realizations and margins. Moving to aluminum foils, the business also delivered strong growth, supported by sustained demand across bare and printed foil categories.

5:15 I can safely say that we are now one of the leading foil suppliers to the pharma sector in India. Despite pricing pressures, we maintained a positive EBITDA margin through continued operational efficiency and cost management. An important development has been the progress in our leading oil initiative. The manufacturing line is ready. Initial trials have been successfully completed. Product samples are currently undergoing evaluation by leading dairy companies, including Amul, Mother Dairy, Binshaw's and a host of other companies in Maharashtra. With the living oil season commencing in January, we are well positioned to pursue commercial opportunities subject to customer approvals, which we are confident of achieving fairly shortly, and this will further strengthen our value added product portfolio.

6:19 Turning to the Conductors and Cables business. Performance remained subdued during FY 'twenty seven, primarily due to the monsoon related slowdown in infrastructure project execution. However, with execution expected to improve, we anticipate a recovery in H2 FY 'twenty seven, with revenue projected to grow by approximately 40% to 50% compared to H1 FY 'twenty seven. Alongside this recovery, we continue to strengthen our manufacturing capabilities and product portfolio. We have received the BIS certification or LT power cables, while utility approvals are progressing.

7:06 Initial production has commenced at our Bhandara facility, and we expect commercial sales to gain momentum from Q4 FY 'twenty seven subject to the necessary approvals. Our larger 6,000 metric tons per annum LTPC expansion at Umbraer is also progressing with trials targeted for Q4 FY 'twenty eight. Another important initiative is our 18,000 metric tons per annum aluminum wire rod facility, where construction machinery installation are at a very advanced stage. Commercial production is targeted for early Q4 FY 'twenty seven.

7:53 Once operational, this facility will strengthen backward integration, reduce external sourcing requirements and support operating efficiencies along with margin improvements and smoothening out the supply chain. On the international front, we have received export orders worth approximately USD 100,000 from Latin America, covering conductors, aluminum triplex cables and polymer insulators, marking progress in expanding our power sector business internationally. Alongside conductors and cables, polymer insulators represent a very important growth opportunity within our power infrastructure portfolio.

8:43 Through our wholly owned subsidiary, MMP Electricals Private Limited, we have developed a complete range of distribution and transmission insulators up to seven sixty five kV. During FY 'twenty seven, factory inspections were completed, registration and approval processes with major utilities, including PGCIL, that's power grid, Jetco, that's Gujarat transmission, MP transmission and Karnataka transmission progressed to a very advanced stage. We have also secured export orders from Latin America and South Asia, supporting our efforts to establish an early and a broader international presence.

9:34 As product approval translate into commercial orders, we expect this business to scale gradually and contribute meaningfully to our long term growth and additional improved margins. Beyond our operating businesses, our associate companies, Tata Clips and Engineering Limited and MMP India Private Limited continue to complement our product portfolio and provide opportunities across the automotive and specialized aluminum applications. We are also progressing with initiatives to improve cost competitiveness. Our approximately seven megawatt group captive solar park with a planned investment of INR 30 crores is almost ready at site with all major equipment in place.

10:27 However, commissioning is original which was originally targeted for Q3 FY 'twenty seven has been delayed due to pending regulatory approvals, and this is likely to be arranged sometime by January, February next year. We hope that this will add meaningfully in reducing power costs and support long term margin improvements. To summarize, our priorities remain clear, sustained growth across our established businesses, strengthened export momentum, increased value addition and progressively scale up to our newer businesses.

11:16 With several growth initiatives underway, we remain focused on disciplined execution, operating efficiencies and sustainable long term value creation. With these business updates, I'd like to hand over the call to our CFO, Sharath Kandyalwal, who will take you through our financial performance for Q2 FY 'twenty seven and H1 FY 'twenty seven. Thank you very much. Thank you, Arun sir, and good afternoon, everyone, and thank you for joining us today.

12:05 As outlined by Arun sir, the first half of FY 'twenty seven has been marked by strong business momentum, improved operating performance and continued progress across our growth initiatives. I will now take you through our consolidated financial performance, followed by a brief overview of segment wise results. Beginning with H1 FY 'twenty seven, the company achieved its highest ever half yearly total income of INR 485.7 crore, registering a strong growth of 31% Y o Y compared to INR 371.9 crore in H1 FY 'twenty six. EBITDA grew by 52% Y o Y to INR 40.3 crore with EBITDA margin improving by 117 basis points to 8.3% compared to 7.13% in H1 FY six.

13:05 Profit after tax stood at INR 25.8 crores compared to INR 1.6 crores in H1 FY 'twenty three. This significant improvement should also be viewed in the context of the lower base in H1 FY 'twenty six, which was impacted by an external charge related to the Umbraic fire accident. Coming to Q2 FY 'twenty seven, the company achieved its highest ever quarterly total income of INR 252.9 crore, raising growth of 34% Y o Y. EBITDA increased by 44% Y o Y to INR 19.3 crore, while EBITDA margins improved by 53 basis points to 7.65%. PAT grew by 73% Y o Y to 12.1%.

13:54 This performance was supported by a robust export and improved plant utilization despite a fluctuated metal prices and inventory valuation related losses and higher consumable costs due to geopolitical situation. However, on a sequential basis, EBITDA margin moderated from 9.01% in Q1 FY 'twenty seven to 7.65% in Q2 FY 'twenty seven, primarily due to inventory valuation related losses. This quarter also included a combined EBITDA loss of approximately INR 1.5 crore from the two of our wholly owned subsidiaries, which are in the initial stages of operations.

14:43 And apart from that, there is an incremental sales from the COI business, which was a low margin as compared to our core business. Despite this pressure, our Y and Y profitability improved, reflecting the underlying strength of our core businesses. On the cash flow front, we generated positive operating cash flow of approximately 22.8 crores during H1 FY 'twenty seven, while continuing to invest in our expansion initiatives. Moving to the segmental performance, I will briefly highlight the revenue trends across our key businesses. Starting with Aluminum Powder, revenue stood at $3.15 crores in H1 FY 'twenty seven, raising a growth of 41% Y o Y. For Q2 FY 'twenty seven, the revenue grew by 37% Y o Y to 161 crores, supported by a healthy domestic demand and a strong export performance.

15:48 Moving to aluminum foil, revenue increased by 38% Y o Y to 135 crore in H1 FY 'twenty seven. Q2 FY 'twenty seven revenue grew by 47% Y o Y to INR 75 crores, driven by sustained demand across bare and printed points. Coming to Conductor and Cable. Revenue stood at 33 crore in H1 FY 'twenty seven, reflecting a decline of 32 Y o Y. Q2 FY 'twenty seven revenue stood at INR 16 crore, down 16% Y o Y, primarily due to the monsoon related slowdown in project execution.

16:34 As mentioned earlier, we anticipate a recovery in H2 FY 'twenty seven. Moving to Polymer Insulators, the business recorded revenue of approximately INR 1.1 crore in H1 FY 'twenty seven with Q2 FY 'twenty seven contributing around 61 lakh. The business remains in its initial stages with future growth expected as customer approvals and order execution progresses. Turning to our associate company, Star Circlips and Engineering Limited recorded revenue of INR 60.5 crore and PEC of INR 10 crore in Q2 FY 'twenty seven, supported by higher sales volumes and improved operating efficiency.

17:23 Similarly, Royal MMP India Private Limited recorded revenue of INR 23.1 crore and PAT of INR 0.4 crore during this quarter. Both companies continue to strengthen our diversified business portfolio with their contribution reflected through our share of profit from associates. Overall, H1 FY 'twenty seven reflects a strong revenue growth, improved Y on Y operating profitability and continued investment in our future growth platforms. Looking ahead, our focus remains on sustaining business momentum, improving product mix, maintaining cost discipline and gradually scaling up our new businesses.

18:11 With this, we conclude our prepared remarks and would now like to open the floor for questions and answers. Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 1 on their touch tone telephone. If you wish to remove yourself from the question queue, you may press 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Varun Shivram from Choice Equities.

19:16 Hi, sir. I hope I'm audible. Hello? Yes, please. Yes. So firstly, sir, congratulations on achieving a record quarterly and half yearly performance, particularly as a one of the. So what's encouraging is that the new business are yet to contribute to us meaningfully. Right? So what kind of momentum can we expect from these new businesses? So we have multiple expansion initiatives underway, right? Just wanted to understand if you can quantify what is the meaningful acceleration and growth we can see from these capacities? There was a unclear why. Can you please repeat your question in brief because there is a lot of echo.

20:06 Sir, is it better now? I'm sorry for that. Is it clearer now? Yes. So basically, sir, I just wanted to understand from the new businesses front, we have a lot of expansion initiatives underway. They're also looking to add capacity. So when will they start contributing to our growth? What kind of growth can we see from these newer initiatives? Like could we quantify that, if that might help a lot? That's the first question. We are investing in the poly insulator business, then cable and conductor business like LG cable and wire rod business. So wire rod business has already been we have given in our press release that it is in advanced stage of completion, and it will start contributing from the Q1 of FY 'twenty eight.

21:03 And polymer insulators, the facilities is already ready, and we are approving waiting for the approvals from the power grid. And the meaningful contribution will start from the Q1 of next year. Understood. And so when will these capacities do you expect them to be optimally utilized at what level, sir? Yes. So for polymer insulator from Q2 of FY twenty twenty eight, we had anticipated that it will be optimum there will be optimum utilization of the polymer insulator facility. And for LG Cable business, the small capacity, which we have set up in our existing plant at Bandara, that is already started.

21:55 And we anticipate that from Q4 of this year, this will start giving a meaningful revenue. And the bigger capacity of this LT Cable because the construction and major machinery has already been ordered. So we anticipate that this trial and everything will be completed in Q4 FY 'twenty eight. And this will start giving meaningful revenue from the FY 'twenty nine. Understood, sir. That's quite encouraging. So one of the businesses I want to deep dive a little bit would be volume, volume insulators.

22:41 So the broader industry in India is planning over INR 9 lakh crore of CapEx in transmission infrastructure by 2032. And currently, INR 1.9 lakh crore of transmission lines are in plan. So what kind of opportunity are we seeing in this entire transformation of the equipment and especially transmission? And one more question would be that our PGCIL factory inspection has been completed. So when can we expect some final approval? And then from there, the revenue will start coming as what I expect. So when are we going to see that happening? Mayank, would you like to take that? I'll take that. So the factory inspection and the audit formalities have been complete, and we are expecting the approval from PGCIL, you know, hopefully quite soon.

23:33 But to give an exact date will not be correct from my part because, you know, these things do take their own time and, you know, finally, you're dealing with a very large body. But everything is on track and if all goes well, we should have the approval quite soon, very shortly, I would say. Understood. Yeah. So my last question would be on polymer insulators only. Again, would this be the major growth multiplier for MMP over the next two, three years? How are we seeing this business individually? And like, what kind of margins can we expect active speak, if you can share something on that? Yeah. So see, the thing is it will contribute very meaningfully to the margin expansion of MMP. It is a business that will ramp up gradually because, you know, these insulators are very niche products and, you know, to master the quality will take some time.

24:25 It will contribute very meaningfully to the margin development and the margin profile of the company, and we are expecting a margin of anywhere between 18 to 20% on EBITDA level on this. Understood, sir. So, basically, a consult companies will reach a double digit margin if this scales up to a certain amount. Right? Absolutely. You're correct. Absolutely. You're correct. Understood, sir. Think this answers most of my questions. So thank you for all your detailed answers, and all the best, sir. Thank you. Thank you. Next question is from the line of Arunit Kapoor from Equity Capital. Please go ahead. Hello? Yeah. Am I audible?

25:21 Yeah. Yeah. Very well. Yeah. So my question is regarding your... Given your strong revenue growth, can you quantify the volume growth for each segment in this quarter? CFO will answer. On Y on Y basis, the Powder remains slight kind of revenue growth on a volume basis. So the Powder grew by two percent on volume and Foil around 14% and conductor was down by 33%.

26:08 High and wide, I think. Yes. So my second question is now I think foil is almost reached its optimum sorry, the powder reached its optimum utilization levels. So are we planning any CapEx on that front? So let me take this, Ronit. We are immediately not planning any CapEx in the Powder division. What we are looking at is export substitution. We want to meaningfully increase our exports, which I believe we are on the right track for where realization and margins are better. So our primary objective right now is to go for the exports and with the redevelopment of The Middle East, there lies a very, very huge opportunity to increase our exports meaningfully even from this level.

26:58 So that is one opportunity that we are very keenly watching and waiting for to once the reconstruction of The Middle East starts, I think that will offer a tremendous opportunity, especially for AAC powders. And maybe talk a little bit about Europe. We are already seeing good signs. Yes, yes. Europe is always there. Europe, we are already seeing good signs. We have added a few very good customers, and that will keep on happening. And our strategy remains that basically diversify a lot more into exporters in the powder segment. Okay. And are we also looking at any additionalities, like, in the powder segment? Like, are we looking into aluminum additive manufacturing or any other niche area or something?

27:50 No. Nothing of that sort right now. Nothing of that sort right now. Okay. And one last question is regarding your solar project, like renewable energy. So approximately, could you quantify the power savings would be annually? See, we can... You know, per unit, we should be able to save about 3 to 3.5 rupees, unit per unit if you are saying. Because we are yet to see what the generation is in terms of units, but I can give you that we'll be able to save about 3.5 rupees per unit from our existing cost. And how much would that improve the EBITDA margin? Any calculate... Back calculation on that? That... You know Because that will be difficult to answer on it. That will be difficult to answer right now, but let's connect offline, and we can let you know about that.

28:42 Yeah. Yeah. Okay. Thank you. That's it for myself. All the best. Thank you. Thank you. Next question is from the line of from Research Analyst Family Office. Please go ahead. Hello. Am I audible? Yes. So good afternoon, and thank you for taking my question. So my first question is on the power and foil growth. Aluminum powder revenue grew 41% and foil revenue 38% in first half of twenty seventeen compared to the first half of twenty twenty six.

29:28 So could you share the actual sales volume in terms for both the segment during this period? This would help us to understand how much growth came from the volumes versus high aluminum prices. Also, I see you mentioned an inventory gain of INR 2.5 crores in 4Q 'twenty six. So could you quantify the inventory valuation loss in second quarter of FY twenty twenty seven and the potential exposure in 3Q twenty twenty seven given the recent fall in aluminum prices? Yes. So in Q2, the approximate inventory valuation related losses is around INR 2.5 crores.

30:25 And so far is your question of volume in tonnage for different segments. So this can be given to you on mail or separately because there are a lot of segments like powder, maybe post segment, filing rolling conversion and printing, so we can give you separately. But so far as the volume growth, I'm saying earlier, I have mentioned that Y on Y basis, we have a volume growth of 2% in Powder division. And in Foil division, it was around 14% and then Conductor was minus 33%.

31:12 And on Q on Q basis, the Powder grew by 8% on volume growth basis and Foil 30% and Conductor was minus 10%. Okay. Okay. Got it. And one more. Lastly, in the May 2026 earnings call, you guided that FY 'twenty seven EBITDA to be around means $37,000 to $42,000 per ton for Powder and to $15,000 for Foil. So what were the actual EBITDA per ton figures for both the segment in first half of twenty seven? Line with whatever guidance we have given. And on full year basis, it will remain on those lines, but subject to any inventory related gain or losses, whatever variation will be there will be because of that only. Otherwise, it is in line with those guidance.

32:16 Okay. So you mentioned it will be in line on what you mentioned previously in the last year. Hello? Yes. Hello? Yeah. Yeah. I have one more question on insulator. So in May two thousand and six 'twenty six, sorry, you guided that for FY 'twenty seven revenue of INR 18 crores to INR 20 crores with major approval expected in second quarter of FY 'twenty seven. Do you still maintain this guidance? Also, what is the current confirm order book separately for domestic and export market? And what is the status of the power grid approval?

33:08 Ed? So right now, the power grid approval is awaited. All the audit formalities for power grid and few other electricity boards have been completed, and we are awaiting approval. So once the approvals come, we expect meaningful orders. And then, you know, the business will ramp up fairly significantly, we feel from December onwards. So 18 to 20 crores at this stage looks a little difficult to achieve, but, you know, it is all subject to our approval, how quickly the approval comes, and then, you know, we can give a firmer number. And right now, you know, we have a order from Latin America. Apart from that, domestically, there's no order book per se because we have not yet ventured into the transmission sector.

34:00 So right now, it is at a very nascent stage.. Yeah. Okay. One final question regarding this start, sir. It is setting up for the facility to supply and fitting to MMP electrical. So could you briefly explain how the transfer pricing will determine and how the economy of this arrangement will be shared between starts with clips and MMP shareholders? So it will be basically or totally buyer seller relation. There will be no special transfer pricing or anything of that sort. The idea for this is to have good quality control and keep it because end fittings play a very, very large, very important part in determining the quality of the insulators.

34:50 So the idea is to keep the quality in check and control... Full control over quality, but it will be a pure buyer seller relationship. Okay. Okay. Got it. Got it. And thank you for giving answer to all my questions. Thank you very much for that. Thank you. Next question is from the line of Simar, an individual investor. Please go ahead. Good again. Thank you for taking up my call. I hope I'm audible. Yes, yes. Please go ahead. Yes.

35:36 So my first question sir, most of my questions regarding the volume of our business have been answered by you. My question is regarding the Powder business. So we've seen 100% sale of power exports during this particular quarter. So how repeatable is this business and how concentrated was the export for the flow? Yes. So see, this quarter, we have done export of around 13 crores as compared to a INR 5.53 crores in the Q1 of FY 'twenty seven and INR 4.48 crores in Q2 of FY 'twenty six. So on half yearly basis, we have just doubled our exports in this half year as compared to the corresponding half year.

36:30 And going forward, we expect that it will grow very good visibility of the export because of the lot of inquiries from The Middle East from the Europe and South Africa. So we anticipate a very good momentum in the export business going forward. And our focus will remain to grow our export business. Got it. And to add to your question, the SKU, so we are seeing business from Europe, Africa, South America and Southeast Asia. So basically, every geography has been more or less covered. So the demand is coming in from all sides.

37:19 And we expect it to sustain we expect it to sustain in the coming year or two at least for sure. Understood, sir. So there hasn't been any concentration on one particular geography? No, no, no, no. So it is coming from South America. It is coming from Europe. It is coming from Middle East. It is coming from Southeast Asia. Understood. And you can add about the orders from ABL, which are now have been deferred, will now go through in this year. Yes, yes. That ABL is always there. We have done that collaboration. So a lot of their orders were deferred from Europe, but that will now go through now immediately. Sure. Yeah. So my second question, so correct me if I'm wrong. So I believe our company really holds right now 70% share in the explosives market, 60%, 65% in the AAC and the 50% out in the aluminum phosphide.

38:16 How do you think is our market share versus the likes of MMP? You say MMP So customization is... The thing is that 70% in exclusive was a figure from a long way, like, you know, few... A year or two back. So right now, I would not put it at 70%, the exclusive share. That is, I would say, somewhere around, say, maybe 60%. AAC is our main segment where, you know, we have a good, you know, I would say, a barrier of entry where, you know, it's not easy to penetrate that market because of the customization and the wide range of grades that we have. So, you see, definitely, we are the leading player and we are hoping to add further market share to our domestic supplies.

39:06 So going ahead, I think AAC will be a very important segment for us domestically as well. Sure. So 60, 65% would be that ballpark figure that I... That you will be able to maintain going forward? Yes. Yes. Yes. For the AC, and, hopefully, we are trying to increase that. We will be increasing that. Sure. Sure. Thanks a lot, sir. Thanks a all the best. You. Bye. Thank you. Next question is from the line of Prashant, an individual investor. Please go ahead. Sir, my question is about this leading coil.

39:52 How much is the peak revenue potential from this leading coil business? Sorry, what was the question, please? How much is the peak revenue potential from this leading coil business? Yes. We have only one line installed right now. The ramp up will begin as soon as the season begins in December or beginning January. And if we work only at 75% of our capacity, the peak revenue for the year would be around INR 9 crores to INR 11 crores. Okay. Okay. And sir, this should be easy to scale up if the product is or finds any traction, then it will be easy to scale up to set up additional machines only, right?

40:40 Yes, actually our utilities and infrastructure is ready for a second line. As in when we need the new line in place, it will take us four months. Sir, now we our business is doing really good. Are we consuming the entire capacity of the rolling mill or we still have some spare capacity of the rolling mill? Rolling mill is 80% occupied, 70% to 80%. There is spare capacity. But what we are aiming for is to go for value addition, more printed, more leading coil and there are a couple of other projects which are downstream projects for aluminum coil, which we are studying and evaluating. Sir, if we are selling 11 to 12 crores of leading foil, then the rolling mill capacity will reach maybe 90%, 95 once this product get commercialized.

41:36 So isn't it necessary to expand the rolling mill capacity maybe next year or something like that? Right now, we are not thinking of that. I think we need to be very, very efficient in whatever we do. We must do much more to fill our conversion capacity, which is presently filled to around 60%. So a lot of those rolling mill stuff will still be transferred to the conversion section in the coming year. And any further plans, I think we'll only be making for FY 'twenty nine. Okay. Sir, my next question is about our corporate structure. We have one listed company and one two associates. One is Stars or Clips. So is there any plan to bring Stars or Clips under MMP, maybe by acquisition of further stake, maybe more than 50% or maybe merger of these two companies? Because these two businesses, one private and one listed, this is little bit like the big players are... They... This is not good structure for the big institutional investors.

42:45 So I think that I think that question, Prashanti. We have explored all possibilities. We have studied this in detail, and there is no possibility of merging or star surplus or, you know, bringing it under the umbrella of MMP. As, you know, it will be too complex. It is a age old structure where MMP held 26% in stock, and I think that will remain. So there is no question of any merging or buying out of start surplus by MMP. Okay. Okay. That answers my question. Thank you very much, sir. Good luck. Next question is from the line of Dilip Kumar Sahoo, an individual investor. I'm very happy to the team at MMP.

43:41 My question, Mike, is regarding the business. Following all the electrical you know, transmission distribution equipment companies, I understand that there is a very large opportunity for insulators in equipment business, particularly transformers, capacitors, in the reactors and switch gears, etcetera, which goes as a bushing into those those equipments. Are we I know I understand you are talking to, you know, all grade and for the and for the worldwide basically transitioning side. Is there any initiative to look at the other side of the business? And how does Postalin compete with us in that segment, if the instrument is little different?

44:37 MMP? Yeah. So, Dilipji, yes, you are very right that there is a huge potential in the other segment also, the equipment segment like transformers and bushings and all. But right now, our focus remains to first get interest in the transmission business because that's where the biggest value add is. Our focus will remain to sell as much as possible of 400 k v and seven sixty five k v of insulators. That is our first target that, you know, we establish our brand in terms of quality with four hundred and seven sixty five because these are the insulators that are the most in demand and that are the most difficult to make. So our first priority remains that. But that said, we are also exploring, you know, the other equipment side as well. With regards to now your second question regarding porcelain.

45:28 So, you know, porcelain insulators in the transmission, I can talk about. I'm not sure about the equipment site. Are... You know, definitely, porcelain is now getting more and more difficult to use. There are... It's easy... It gets damaged very easily. It does not perform well in polluted and salty areas. So people do prefer these composite insulators because of their lightweight, hydrophobic nature. And, you know, they get... They are damaged proof in a way that, you know, if you throw a stone or something like at it, it won't break. So... And another factor is because of the weight of the ceramic insulators, the towers have to be designed, you know, very heavily in in such a way that they can do a lot more steel.

46:16 So here it help... Helps in design efficiencies also, the reduced weight of the composite insulators. Understood. What I was also keen to know, Manji, it the capability of a porcelain versus a composite? Is there any difference, particularly at the high level, like seven sixty five kV or something like that? Is there a differentiator between porcelain and composite? I would not say there is a very big difference in the performance per se. It is just the other factors that, you know, which make a composite insulator much more attractive, including transport, the lightweight, ease of installation, and, you know, their better performance in polluted and areas with high salt in the, you know, atmosphere, like the seaside areas and all.

47:10 Definitely in those areas, the composite does perform much better than the ceramic ones. Sure. Sure. My second question, again, on the insulator is, like, you know, if we want to really see a, you know, production ready and field tested product, we have to sell in volumes because that will take us to places and environment which are varied. Now Yes. You know, when when will, like, you know, the proof of the footing that we are as good as the usual guys, like, the builders of the world, when that... You know, I mean, if we sell one core, two core kind of product, we obviously... The data will not be sufficient. Right? So how do you how do you how do you ensure that we are as good as, say, or a...

48:00 Or somebody else? Right? So how do you how do you how do you really enforce quality now at a small scale? So at a small scale, see, right now, there are two things, mister, we have gone in for complete integration of our facility that, you know, we have our own FRP manufacturing. We'll be manufacturing our own end fittings. And also, you know, we have a plant with the latest possible machinery and testing equipment. So that said, that is all the things that we can take care of without doing the mass production. Once we do the mass production, it's only the supply that we do to, you know, the big utilities and the power grid approved suppliers. That's where, you know, the real feedback will start to come for 400 and the seven sixty five. Right now, we are only looking at 400. Our power grid approval will be there to 400 only.

48:54 For 765, they'll require further two years of performance. Yeah. Yeah. Sure. My second question... The third question is, we have a Bandhara facility for ATK, which is a pilot plant. Right? It's a it's a stop track arrangement. Yes. And the Umrade Umrade will be the showcase facility for us. Right? Yes. So if we... If all our registrations and and certifications are on Bundara facility. Right. When we transition eventually to Umrah's facility Yes. Is that not going to create a problem? Are you sure that you will be able to use the same registration and... Because that that is your showcase, you know, which is just a just a side show. Right? Yes. Yes. This is just a paid marketing initiative.

49:46 But going ahead, we are sure that, you know... Sorry. I'm getting blocked. Sharagi? Sharagi? Yeah. I can hear you. Yeah. So going ahead, yes, we are certain that, you know, using the same brand name, we'll be able to sell those cables, and that will... Should not create any conflict per se. Okay. Okay. Yeah. Okay. Thanks thanks for answering all my questions, and and and congratulation on really breaking into the export international frontier on powder. That has been a long dream of us for the last five odd years. Absolutely. Very happy to see the trading holding 15 crore of revenue.

50:33 Yes. Really happy to see. And we hope to keep on improving. We hope to keep on improving each month. Absolutely. Absolutely. Okay. Certainly. Thank you. Thank you. Thank you. Bye. Thank you. That was the last question for today. I now hand the conference over to Mr. Arun Bandari sir for closing comments. Thank you everyone for your valued questions, your continued interest in MMP. We hope that all the questions were satisfactorily addressed. Any open issues, like our CFO has said, we'll be pleased to answer on e mail.

51:21 And please do direct your queries to Stellar, who will transfer to us onwards. As discussed, we remain focused on sustaining growth across our core businesses, strengthening our exports and progressing with the next phase of growth across LTE, wire rods and polymer insulators. While we remain mindful of near term market uncertainties, well, that's part of any business in any case, our focus will continue to be on very disciplined execution, operating efficiencies for sure and of course, medium term and long term value creation. I'd like to thank our employees, our customers, suppliers, business partners, investors and all stakeholders for their continued trust, cooperation and support.

52:21 Any further queries, like I said earlier, please feel free to reach out to Stellar's Stellar team in Mumbai. Thank you and have a wonderful day and week ahead. Bye bye. You, sir. On behalf of MMP Industries Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Hi.