Hariom Pipe Industries Limited — Call Transcript 2025

Nov 18, 2025

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Dated: November 18, 2025

To,

Listing Department The National Stock Exchange of India Limited, Exchange Plaza, Bandra Kurla Complex, Bandra East, Mumbai – 400051 NSE Symbol – HARIOMPIPE

Corporate Relationship Department BSE Limited, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001

BSE Scrip Code – 543517

Dear Sir/ Ma’am,

Sub: Transcript of the Conference Call held on November 14, 2025:

Ref: Disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015: Transcript of the Conference call with investors.

With reference to the captioned subject, please find enclosed herewith the transcript of the Conference Call with the Investors/Analysts held on November 14, 2025, on the financial and operational performance of the Company on the Unaudited Financial Results for the quarter and half year ended September 30, 2025.

This is also available on the Company’s website at https://www.hariompipes.com/presentations-made-to-analysts-or-institutional-investors.

Kindly take the above information on record.

Thanking You,

Yours faithfully For Hariom Pipe Industries Limited

REKHA Digitally signed by REKHA SINGH SINGH Date: 2025.11.18 17:16:41 +05'30' Rekha Singh Company Secretary M.No. A33986

Encl: As above

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Hariom Pipe Industries Limited

Q2 & H1 FY26

POST EARNINGS CONFERENCE CALL

November 14, 2025 11:30 AM IST

Management Team

Mr. Rupesh Kumar Gupta - Managing Director Mr. Amitabha Bhattacharya - Chief Financial Officer

Call Coordinator

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Strategy & Investor Relations Consulting

Hariom Pipe Industries Limited Q2 & H1 FY26 Post Earnings Conference Call November 14, 2025 11:30 AM IST

Presentation

Vinay Pandit:

Ladies and gentlemen, on behalf of Kaptify Consulting Investor Relations team, I welcome you all to the Q2 and H1 FY26 PostEarnings Conference Call of Hariom Pipe Industries Limited. Today on the call from the management team we have with us, Mr. Rupesh Kumar Gupta, Managing Director; Mr. Amitabha Bhattacharya, Chief Financial Officer and Ms. Rekha Singh, Company Secretary.

As a disclaimer, I would like to inform all of you that this call may contain forward-looking statements, which may involve risk and uncertainties. Also, a reminder that this call is being recorded.

I would now request the management to brief us about the business and performance highlights for the period ended September 2025, the growth plan and vision for the coming year, post which we will open the flow for Q&A. Over to you, sir.

• Rupesh Kumar Gupta: Good morning, everyone. This is Rupesh Kumar Gupta. I extend a warm welcome to all participants joining us for the discussion on Hariom Pipe Industries Limited performance for the second quarter and half year ended September 30, 2025. The first half of FY26 has been a period of steady progress for Hariom. Even though the industry faced some challenges and the monsoon season is usually slow for the steel sector, we are still able to grow our volumes and revenue while keeping our margins strong and maintaining a healthy balance sheet.

The softer performance in Q2 happened mainly because we took a planned maintenance shutdown at our ISP plant and dispatches were lowered during the heavy monsoons, which has been extended. These were expected events and do not indicate any weakness in demand or in our operations. In fact, despite these factors, we still recorded a 7% growth in both volumes and value in Q2 FY26 compared to Q2 FY25, which shows the underlying strength of our business and steady demand for our products.

Our sales volume for the half year stood at 1.38 lakh metric tonne, marking a 21% year-on-year growth while revenue from operations reached INR797 crore, also up 21% year-on-year with all units now running on demand momentum, returning strongly in the second half. We expect a meaningful pickup in volumes. Our trajectory continues to remain broadly aligned with our medium-term growth aspirations. Although the pace of ramp-ups suggests there may be a marginal deviation from the originally envisioned volume path, importantly, the

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demand environment remains robust and operational momentum is building steadily.

Our underlying demand pipeline is strong and order flow from core user industries, infrastructure, fabrication and construction continues to grow traction month after month, a key driver of our performance in the increasing contribution of value-added products, which now account for nearly 97% of total sales. This strategic emphasis on engineering grade pipes, CR, GP, coils and scaffolding has helped us sustain an EBITDA margin of 12.6%, even in a relatively softer pricing environment.

Our EBITDA for the half year stood at INR100 crores and PAT at INR34 crore, both stable on a year-on-year basis. The resilience of our margins underscores the strength of our integrated business model from sponge iron and billets to finished pipes, which provides natural hedging, operational flexibility and cost efficiency across the value chain.

On the balance sheet front, Hariom continues to remain financially strong with a debt-to-equity ratio of 0.65x, ROCE of 21% and ROE of 11%. Our operating cash flow of 40 crore, reflecting healthy EBITDA to cash conversion, demonstrates our disciplined approach to working capital and liquidity management.

Now on the strategic front, this quarter marks an important milestone for Hariom. We have signed the MOU with Government of Maharashtra to set up a 1.5 million ton per annum integrated steel plant at Gadchiroli under the state's mega project policy. The project comes with substantial fiscal incentives such as GST reimbursements and power tariff support, which will significantly reduce the overall project cost. At this stage, our focus for the next 18 months is not on starting major CapEx. Our first priority is to fully set out our existing assets and in parallel finalize the land and complete all land-related documents and clearances for the new project.

The plant will be developed in a phased manner, which allows us to plan carefully and execute without putting pressure on our current operations. We also do not expect any major equity dilution or large increase in debt at this stage as the project will benefit meaningfully from the incentives offered under the mega project policy. This approach keeps the project financially safe and well aligned with our long-term strategy. We entered the second half. We remain optimistic about stronger volume growth and improved profitability. Supported

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by firm demand, higher capacity utilizations and improving realizations, our strategic priorities continues to resolve around profitable growth, disciplined capital allocation and consistent value creation for all stakeholders.

In summary, while Q2 reflected temporary softness due to planned operations, shutdowns and seasonality, the core fundamentals of Hariom remain exceptionally strong. Our integrated business model, robust product mix and operational efficiency continue to position the company for sustainable and long-term growth.

Thank you once again for joining us today. Thank you all.

Moderator:

Thank you, sir. We'll now begin the question-and-answer session. All those who wishes to ask the question please use the option of raise hand, we’ll take the first question from Yatharth Saxena. Please go ahead.

Yatharth Saxena:

Yeah, hi, and thanks for giving me this opportunity and congrats on a good set of numbers. So I have a couple of questions to ask. So my first question is, like HRC prices are in the range of INR45, INR46 and Patra is in the range of INR38, INR39. And as more capacity of HRC will come in next few quarters, so HRC prices will shoot like go down and billet prices will go up. So it would further lead to narrowing down of gap between HRC and Patra. So how would you compete with HRC or what will be your strategy going forward against HRC market? Like don't you feel the pressure with HRC as the market is very strong with good quality products?

• Rupesh Kumar Gupta: Thank you, Yatharth. So basically, both the products are totally different. There is no combination of the two anywhere. The valueadded products we make are made from HRC fully. And the backward integration is from patra. So we have a combination of basket for HR also as well as Patra which you are saying, which is known as scalp [ph]. So this scalp and Patra is again a different quantum, which is very lower in product and all. So scalp and HRC, the quantity of HRC will increase. In the same way, the infrastructure of India is also parallelly growing. So we don't see our EBITDA margins decreasing anywhere. And in the future, we see as the monsoon has been disturbed, extended monsoon has happened. So I feel that the requirements will increase very fast. So the next two quarters will be wonderful for Hariom.

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Yatharth Saxena:

Okay. And I want to understand a little bit on the new emerging regional players, like in Patra pipe segment, such as A1 in South or Madhav in North and SKS in West. So how will Hariom Pipe compete with them like due to the freight disadvantage or the local regional players? So, what is our strategy on that part?

• Rupesh Kumar Gupta: See, basically, it is very important that customer satisfaction in today's date. So basically, Hariom is targeting on the customer satisfaction plus quality. Whoever comes in the competition they will have to come to that level, which Hariom has. If a competitor tries to come ahead so Hariom is not stuck in that place. Hariom is also trying to enter in value-added products and other multiple areas, where many players don't go.

Yatharth Saxena:

Okay, but sir like, like, as you are talking about value-added, so what is the focus on value-added products, like I want to understand more on value-added products, like what will we consider in this particular segment? And are we planning for some forward integration or it's just a industrial product, like who are our customers in the segment for value-added?

• Rupesh Kumar Gupta: Okay. Like for example we supply GT coils, etc., to Kirby, we give to Pannar , and there are lots of such players, like we supply material to Midhani. We supply pipes for making electric buses. So Hariom caters to such OEMs. The OEMs business model is that we take a lot of time to get the permission or clear the quality constrains, which takes minimum of six months to one year of time for their due diligences, and quality checks and multiple things.

So now we have entered with some good companies wherein longterm strategy is to give them the quality product and enter to them with a long-term strategy wherein the quantum of Hariom will be consumed by them, and having an MOU sort of thing. So, Hariom is more focused on the quality and in the future also our focus will be on quality product. We want to get away from the niche markets where there is competition. So, from the start and going forward, Hariom's focus will be on profit only.

Yatharth Saxena:

Okay. And my second question is like on the margins front. So, like, could you please share the product wise margins, like what are the margins we are making in Q2 or in FY25, like GP, tubes, pipes, coils, like just a general trajectory so that I can build my production. That would be suffice for me.

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Rupesh Kumar Gupta: Yeah. Yeah. So, Amit, you can please take it over.

• Amitabha Bhattacharya: Thank you, sir. Thanks for the questions. So basically, sir, if you see, the margins of our value-added products, means the blended EBITDA comes to roughly around INR7,000. And the second thing is if you talk of the margin, individual product-wise margin, in MS steel in Q2 FY26, we had EBITDA of INR8,200 per tonne. Simultaneously in GP510 coil, which is our value-addition segment which we make from HRC, in that it is roughly INR7,000, INR6,900 and some change. You can consider it INR7,000 approx. This is our per ton EBITDA. In scaffolding similarly it was INR11,000 EBITDA and other steel products which we say, sponge iron, billets, Strips, which had a quantum together of 3% in this quarter. 97% are value-added product, which was your first question, what is the segment of valueadded product? That is basically we have taken into the consideration of MS Tubes, scaffolding, GP pipe, CR pipe, GP coil, CR coil.

These are the three items on the border line, which are our valueadded product. In this our margin in MS tubes was INR8,200, GP pipe and coil had around INR7,000 and scaffolding was INR11,300.

Yatharth Saxena:

And sir, what is the realization for all these products?

Amitabha Bhattacharya: Sir, the average realization in September is 55,839 If you take individually then in GP Pipe and Coil our realization was 61,000 approximately and in MS Tubes our realization was 49,000 approximately.

Yatharth Saxena: And scaffolding and like…

Amitabha Bhattacharya: In scaffolding our realization was 64,000 approximately.

Yatharth Saxena: And the sponge and billets will be below 40.

Amitabha Bhattacharya: If we do the average then it will be below 40. Our quantum was also very small then, because other steel products are not there just to increase the volume or to top line the sales. Our concern is for the value-added product, which is mainly used for 65% for the niche market that is low thickness pipe which is used for construction and fabrication in interior and furniture segment. And parallelly our new segment Galvanized Coil and Pipe which our MD sir had answered goes to OEM, is also of low thickness, between 0.8 to 5mm thickness coil. So, margin is more in this.

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• Rupesh Kumar Gupta: So Yatharth to just sum up, basically we are not targeting only one particular thing. If you take the benefit of backward integration, today we are not on the distribution model but on the dealer model, we take the benefit of that. We take the benefit of integration and internal processes. So, a lot of things in Hariom are not available to anyone. So that is the reason Hariom is totally different than others.

Yatharth Saxena: Sir, as we are becoming big, so are there any plans to appoint a big auditor in the near term as it will bring a lot of credibility to the accounting practices?

• Amitabha Bhattacharya: Sir, you can say that our R Kabra & Co. comes in the top 10 auditor group. It is a well-reputed firm and that is based in Mumbai only. And their legacy is more than 40 case, and they also participate in so many government institutions' forensic audits. And not only that, they are the stat auditor of so many listed companies. So, we don't think that -- their own credibility is very good. So, there is no need of a big four, because his name, reputation and authority itself come.

• Rupesh Kumar Gupta: So, we have not thought about it. Basically, let us take that in a Board meeting. We don't know what will happen on a rotation basis but again, we have not thought about it.

Yatharth Saxena: Okay sir. Thank you and all the best for the coming quarter.

Rupesh Kumar Gupta: Thank you Moderator: Thank you Yatharth. We will take the next question from Smith Gala and I request the participants to limit their questions to two per participant. Smith, you can go ahead please.

Smith Gala: Yeah, thank you for the opportunity. Sir my first question was, yes, if I recollect our last conversation during Q1 concall the planned maintenance impact was not expected to be material. So, if you remove the effect of planned maintenance for the quarter two what would have been the volumes in Q2 and we had guided for 30% volume growth for the full year. So now to achieve that we will require minimum 38% to 40% growth across quarter 3 and quarter 4. So, as things stand, where we are looking at the same?

• Rupesh Kumar Gupta: So, on the growth side trajectory, what we have planned, we are on track basically. As extended monsoon has affected a lot throughout India, and moving ahead, the demands that are being raised, plus we will get the benefit of Safeguard Duty. Looking at all these things, we

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feel that we will be able to fulfil it in the next 2 quarters. So, I don't think Smith, there will be any gap. We are very much positive and 100% we feel that it will happen.

Smith Gala: So, we are confident that we will be able to achieve 30% in the full year?

• Rupesh Kumar Gupta: Yes, 100% because in the coming time, the demands that we are seeing, and the policies of the government that are coming in place and the way we are expanding into OEMs, dealer networking establishing of more dealers, establishing their own set of things, branding, the hard work that we are doing from behind, we are very positive -- achievements, see on number side, yes, but on the profitability side, on the EBITDA side, on the marginal growth of that particular thing, we are very positive on the growth trajectory.

Smith Gala:

• Okay, and the depreciation and interest impact expenses are increasing sequentially, so the lease of Ultra Pipes was in Q1. Why are the interest expenses and depreciation increasing from Q1 to Q2?

• Amitabha Bhattacharya: There were two factors that were supposed to work in that. One, when the acquisition of Ultra Pipes happened, we had only 1 month in the last quarter. In this quarter it was of 3 months. If you look at the depreciation of most of the assets almost all of our CWIP has been completed and capitalized. So, the full term depreciation is coming. That is already aligned with our estimation. And the interest part is also aligned. In the recent past, approximately INR1 crore roughly you can take, in the EIR concept, on the 26 of September the entire takeover of Canada Bank was done by SBI. So as per the EIR concept, as per IndAS, the term loan and repayment interest of Canada Bank, we had to add it back in P&L As per the IndAS accounting norms. So it has increased a little. But almost all the expenditures are in line. And as per the industry norms and whatever the present scenario, it is much more minimal compared to any other. The financial cost is normally there. Due to the softness of the top line, it looks like this, but otherwise, the expenditures are in line.

Smith Gala:

So, the interest cost was one-off of INR1 crore, can I understand that?

Amitabha Bhattacharya: Yes, this EIR concept was only a one-time.

Smith Gala:

Ok, Thank you. I'll join back the queue for further questions.

Moderator:

We will take the next question from Sagar Shah. Please go ahead.

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Sagar Shah:

Am I audible?

Moderator:

Yes, Sagar.

Sagar Shah:

Yeah. First of all, my first question sir would be regarding our volume outlook; to add to the point to the last participant, you had guided for around 30% volume growth. But we understand because of the softness that you had in Q2, regarding the plant shutdown, extended monsoon. But in H2, you guided for a better volume outlook. So what are its drivers? Are you seeing some much better volume outlook on ground, due to the rise in infrastructure activities? Can you highlight some point regarding that?

• Rupesh Kumar Gupta: For example, Sagar, when monsoons have come the infrastructure has been damaged. For example, someone's shed has been damaged, some thing or other has been damaged to some extent. So the replacement to that particular thing with a nominal amount is only the structure of pipe. And that particular pipe sector will 100% have an impact in the coming quarter also, which we are seeing that the demand is rising from the dealers. Due to the softness of pricing, the pipelines are empty. But once there is a current, the demand will be so much that we will feel that the material will be less.

So, we are very much bullish and positive on the demand side. And if you look at the government infrastructure, if you look at the railways, metros, and other places, there will be some impact of that thing. So along with the government infrastructure, the pipe requirement will increase. We are very much positive on the market.

• Sagar Shah: And also, since real estate activities in Q2, even next year, it will depend on the next year's government budget also. But in H2, you can see that the real estate activities or the infrastructure activities, road activities the work that has been stuck for 3 months, so are you seeing that the work has started? And it will actually further add to the demand on the ground?

• Rupesh Kumar Gupta: We being in Telangana, the very prosperous state of the country, the demand that was going to come here because of this monsoon, there is no work for the civil sector, buildings, real estate, scaffolding, etc. All work stops. So, in continuation with this call or previous days we are getting enquiries, so the flow of enquiries has started.

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Sagar Shah:

My second question sir, was related to CapEx. In CapEx, we are increasing the capacity of MS tubes for FY26. So, I wanted to know what is the reason regarding the same, because the existing capacity has not been utilized in Q2? And secondly, if you are doing it, what will be the amount of CapEx for FY26 and FY27? And because work will start in Maharashtra as well, maybe not now, in next year. So can you guide us for the amount that you will? And secondly also, what is the reason behind increasing in MS tubes?

• Rupesh Kumar Gupta: We are working on the automation of MS tubes. We are working on the quality of MS tubes. We are working on the upgrade of machines. There is no major CapEx. It's a regular CapEx, whatever we are doing Amit, am I right? There was no such CapEx

• Amitabha Bhattacharya: Yes. Actually, the thing is if you talk about MS tubes the installed capacity, you can utilize the maximum optimum level of capacity you can utilize up to 70% because of the various size and thickness and multiple times we have to change the rolls. So basically, the question you are asking that you have enhanced the capacity of MS tubes, those MS tubes, actually we have taken the ROU assets of Ultra Pipes on a long-term lease. So that was our plan before IPO. So that was our sister concern, which we have taken the long-term assets on long term lease, which is adjacent to Hariom Pipe.

• Sagar Shah: Okay, so basically what will be the CapEx amount for FY26 and FY27?

• Amitabha Bhattacharya: There will be no major CapEx. There will be no major CapEx but as an integrated steel plant we always have some sudden maintenance CapEx.

Sagar Shah:

How much approximately?

Amitabha Bhattacharya: It is 10% to 15% generally.

Sagar Shah: 10% to 15% of?

Amitabha Bhattacharya: The gross block.

Sagar Shah: Gross block. Okay, fine sir. Thank you so much and all the best.

Moderator:

Thank you, Sagar. We will take the next question from Rakesh Goyal. Please go ahead.

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Rakesh Goyal:

Hi, good afternoon. Thank you for giving me the opportunity. So I just had a couple of questions. So, I just want to understand that since the HRC prices are nearby in the range of INR45 to INR46 and the Patra prices which are basically our raw material its in the range of INR38 to INR39 And since due to the incremental capacity in the short term the prices of the -- the gap will be narrowing down. So I want to just understand how Hariom Pipes will be able to protect its market share, along with its margin? I mean what are the strategies?

• Rupesh Kumar Gupta: So basically Rakesh, thank you for the question. Basically, the HRC prices have basically softened because of again monsoon. Secondary which is our backward integration in that our pricing, today we are very much near to the HRC pricing only. So today the pipes which we are quantifying which we are branding with quality, we are very much on a higher pace than the peer competitors. So today valuation in terms of brand, in terms of quality, in terms of service, in terms of dealer network, in terms of on-time delivery, in terms of keeping the stock readily available, Hariom maintains a lot of these parameters where customer satisfaction is the prima facie work which we do.

Today for the customer we find a business for that as well. That's the whole strategy which people may not do it. Basically, everyone has their own strategy. One is better in one particular area which we are in. So, our focus is more on service orientation.

Rakesh Goyal: Thank you, sir. Thank you for giving me the opportunity. Moderator: Thank you, Rakesh. We will take the next question from Ishan Modi. Please go ahead. Ishan Modi: Yeah, sir, thanks for giving me opportunity. What I am saying is that in result we have decreased in EBITDA y-o-y basis. Also, we have suddenly 4x jump in purchasing stock in our income statement. So, what are the reasons for that? Also, what I am seeing is that there were few competitors in the market, in the listed market where they were able to grow EBITDA but also the volume growth was quite better than us. So, I understand there was the monsoon reason. But would you give to some answer on this, like what's the reason behind that?

Rupesh Kumar Gupta: See firstly what the competitors are doing, we will not focus on that. What Hariom does we can just concentrate on that. And we can focus on this line only. But as this is a preventive maintenance, which has to be a mandate thing, because when the structure gets damaged so the probability of accidents increases. So, this was already planned in

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beforehand that we have to do this. But again, right time because the season is off and we had to take maintenance, so in the 12-18 days whatever, we closed it down and did it there. Now as far as, Ishan you are asking, we are not aware of what the competitors are doing.

Ishan Modi:

Okay and what about EBITDA per ton has decreased, and also the purchasing stock intraday also jumped by 4x on a y-o-y basis?

Rupesh Kumar Gupta: Amit tell us.

Amitabha Bhattacharya: So basically, the EBITDA per ton, if you see, not because you had INR7,564 blended EBITDA in Q2 FY25. In Q2 FY26 it was INR7,103, okay there is not much more difference. The difference is of INR400. That is not because of softness of demand or anything. It was due to that plant shutdown. So, after the plant shutdown your minimum maintenance cost and the fixed cost, like empty charges of electricity and other parameters, other salaries and other maintenance charges that is always incurred fixed rate So this is impacted around INR300 to INR400 per ton EBITDA That is the one major reason.

And your second question is comparatively to the others, so comparatively to the others if you see Hariom is much more ahead from any others in terms of EBITDA percentage, and in terms of profit margin to industry segment. Because our product is very low thickness pipe where we are getting better margin comparatively to the general volume type pipe where the thickness is high.

Ishan Modi: Okay, and also like purchase in stock I am saying the 4x jump y-o-y in income statement. So, any reason for that?

Amitabha Bhattacharya: Regarding that…

Ishan Modi: Purchase of stock in trade there is one line item in income statement.

Amitabha Bhattacharya: Purchase in stock in trade means certain items, actually we have purchased and sell. For an example like in solar when solar panel is used for panel mounting, Hariom makes a pipe and gives it to EPC contractors. Along with that many supporting structures are needed, which are not made by Hariom. Those are accessories. So that item you can see purchase stock in trade, which is our new segment which we told in last concall we have started new segment on solar. And in recent past we have also sold HRC, etc., HRC coil, etc., which we took as it is and made HRPO coil and sold. So, we treated that in stock in trade.

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Ishan Modi:

Okay. And also like, I would also like to reiterate as another analyst also asked the same thing that if you want to achieve 30% volume growth then in Q3 and Q4 we need almost 30% to 40% y-o-y volume growth So are we really really confident to achieve that or do you like to revise the guidance for next two quarter?

• Amitabha Bhattacharya: So basically, sir if you see past history of Hariom, Hariom's Q1 -- H1 vs H2 CAGR growth rate is almost all 40% in H1, near to 60% in H2. So, if you calculate according to that then you will see our roughly 30% growth which was there, last year was 2,45,000 against our sales and past CAGR track record we were envisioning 30% volume growth. And 312,000 near about should be done, because if 60% volume growth comes from here, then 60% should be achievable.

Ishan Modi:

• Sir are you confident to achieve 30% to 40% y-o-y volume growth in Q3 and Q4?

• Rupesh Kumar Gupta: Because if there is growth in infrastructure and other demands are good then we think we should do it.

Ishan Modi:

• Okay. And any colours on the solar EPC segment? I think we had discussed to enter that segment. So, any demands we are seeing from that segment?

• Rupesh Kumar Gupta: We have collaborated with few of the companies who are into the EPC contracts. And we are trying to supply the structures to them basically. We are not planning to go for complete EPC contractual works because it is out of the goal, and out of the things what we are doing. And competition is very high over there and the groundwork is really pathetic. So, we are just planning to supply them the material which is required by them.

Ishan Modi:

• Yeah, on that side also, so are we seeing any major kind of demand or any major scope by which we can…

• Rupesh Kumar Gupta: Demands are huge basically; demands are huge in solar industry. But targeting the right customer to the right place is again a thing which we are working on.

Ishan Modi:

Okay. And also, sir, the last question, like I have this doubt I am not able to understand. Like in the last concall also it was asked that what will be the impact of maintenance of the plant over the next whatever? It was said from the management that there will be almost no impact

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or very minimal impact. But I am seeing that decrease in volume growth also was contributed by the plant maintenance. So, I am not really able to connect these two things.

• Rupesh Kumar Gupta: So, it was then basically preventive maintenance because to avoid -- see when the liquid is being casted the structure cannot be weak. So, it is a very big -- it becomes very misfortune if we do not keep the safety. So that particular time was when we were planning. But again, we felt that it is off season, so we should do it in that. Safety will also be covered out and the structure we have to replace it. So, for that we did some automation work in the rolling mill, which had to be done, and also the work in the furnace, we did that and also strengthened the CCM. For that we had to give the breakdown otherwise there was no reason to do the breakdown.

Ishan Modi:

• You are saying that in the last concall, we did not plan that much. But we did more than we planned in the maintenance activity. And that was one of the impact.

• Rupesh Kumar Gupta: When you go to plan something, when you open something then some other work comes out. Now we cannot do that we had planned for 5 days so we have to complete it in 5 days even if it the work is not done, we have to do. We can't do like that. So, when the work increased, we felt that we have to complete it.

Ishan Modi:

Okay, okay. Thanks sir.

• Moderator:

Thank you, Ishan. We will take the next question from Praneet Guddeti. Please go ahead.

Praneet Guddeti:

Good morning, sir. Am I audible?

• Rupesh Kumar Gupta: Yes

Praneet Guddeti:

• Yeah Andhra Pradesh is seeing strong investment momentum in data centres, renewables and industrial expansion. Given Hariom's strong presence in the region, how are you positioned to leverage this opportunity and what portion of future growth could infra contribute?

• Rupesh Kumar Gupta: So, this question is impacting the real business. But again, a lot of people who hear from other places it gives us a problem in competitions. But again, we have good relations with Andhra in terms of supplies, in terms of our dealer network, in terms of supplies to the government and many other places where we are positioning our

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selves, where Government supplies plus through dealer networks and establishment of new dealers, we are working closely on these. So, Andhra's belt is growing well and we will be partnering to it.

Praneet Guddeti: Okay. What is the revenue bifurcation, like how much you are getting from Andhra as a percentage of total revenues?

• Rupesh Kumar Gupta: I think we will not be having that particular data right away. Amit, do you have anything?

• Amitabha Bhattacharya: State wise data is not readily available. If you want you can send a mail we will give you.

Rupesh Kumar Gupta: We will give you whatever is required

• Praneet Guddeti: Which region are you getting most incremental growth in the south, sir?

• Rupesh Kumar Gupta: Which region? Karnataka is doing good; Telangana is doing good. We are very much focused on Kerala. So, all these states, whatever the states are they are equally good, not an issue.

Praneet Guddeti: Okay, thank you sir. That's it. Thank you.

Moderator: Thank you, Praneet. We will take the next follow-up question from Smith Gala. Please go ahead

Smith Gala: Yeah. Thank you for the follow-up. So, my next question was what are the developments for the power project plant which are undertaken by us? What stage have we reached in that?

• Rupesh Kumar Gupta: So, in this particular segment we have finalized few of the lands, and - - on the lease basis. And we are probably planning to fix it up by March end or April first week. So that particular thing will be -- it's on basically and we are moving ahead with that particular thing, not an issue.

Smith Gala: So, what is the cost which is already incurred, and the cost to be incurred in this project?

• Amitabha Bhattacharya: So actually, basically already in our past concall and press release also we have given. So, it is under the PM Kusum Subsidy scheme. And out of 13 locations we approximately -- land requirement is 210 acres. Out of 210 acres already we have completed the lease deed,

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long term lease deed, roughly 56 acres of land. And now that lease quantum is very less. You can say INR50,000 per acre per annum. So that is not a big amount. You can say overall project cost will be coming near to about 200 to 220 after completion of this project. And then we get the reimbursement of the subsidy during the construction period only.

So, it will not impact to any sort of existing operational financial impact or not having any big debt in the coming future also. And this is this will be developed not at a single stage. Every location wise we have to develop and restart the generation of revenue so that it will not impact to the P&L also, not very much. Out of 13 locations one location has been completed. It has been tied up, its revenue has started. Then your development of second location starts. This will be done in part and pieces like that.

Smith Gala: Okay, and B2B sales fee is 15% in FY25, which is 20% in H1. So, in B2B which products are sold and how is their margin profile compared to dealer sales?

• Rupesh Kumar Gupta: So, all the OEMs their product profile is not fixed. All have their own different profiles, thicknesses, sizes, all are different. So it is difficult to give that detail in this forum. And secondly this development, this is continuous process and R&D centre which is ours, we develop this a lot. Our focus is more on this.

Smith Gala: Okay thank you.

Moderator: Thank you, Smith. We will take the next question from Heli Shah. Please go ahead

Heli Shah: Hello. Good afternoon. Can you hear me?

Moderator: Yes.

Heli Shah: Since we are not doing any major CapEx and we will see a lot of infrastructure demand, just wanted to understand the company's expectation for the next 2-3 years on the basis of the revenue basis, and also the EBITDA and PAT margins? How are we planning to kind of expand that? What will be the major factors affecting our margins going forward?

• Rupesh Kumar Gupta: Heli, basically if you see our past, in that past the continuous stand we have taken and our EBITDA margins, if you see there is not much

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major fluctuation. So, we will move ahead on the same standards. We hope to be more positive, because as we are going from OEM and B2B, so we think our EBITDA margins will be better and the PAT margins will also increase. So, if you see the past 4-5 years if you see the growth plan and the strategic move we are moving forward with stability. We can do multiple things which is there. I can announce in this platform we are the cleanest company. We don't want to give anything which is not favourable to any of our stakeholders. And we remain focused on that particular thing. That is our main strength.

Heli Shah:

In the next 2-3 years are we planning the same margins or are we planning any expansion in those margins?

• Rupesh Kumar Gupta: Margins will be minimized -- sorry margins will grow as the sector of B2B and OEMs will grow there is hope for more margin growth.

Heli Shah: Okay. And on the top line basis, any guidance for the next 2-3 years?

• Rupesh Kumar Gupta: 30% we are talking about CAGR I think that will be continued.

Heli Shah: That will be maintained. Okay, okay, all done. Thank you.

• Rupesh Kumar Gupta: Thank you. Moderator: Thank you, Heli. We will take the follow-up question from Sagar Shah. Please go ahead.

Sagar Shah: Thank you again for the follow up. Just one question related to OpEx sir. Since our CapEx will be relatively lower just the maintenance CapEx, when hardly we are going for the solar plant that too in a phased manner. But looking ahead what would be the OpEx? Can you give some colour on the employee as well as the other expenses front? Will we see some sort of operating leverage going through, because not so much CapEx and we will be guiding for almost 30% CAGR volume growth. So operating leverage will play out in margins going forward? And secondly how will OpEx be this year and next year, sir?

• Amitabha Bhattacharya: So basically, our OpEx outlook remain stable. We do not expect any major increase in operating expenses in the coming quarter since we are not adding new capacity right now. There are no new fixed costs coming into the system.

Sagar Shah: Okay, fine sir. So normalized OpEx around single digit growth in OpEx can we assume?

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Amitabha Bhattacharya: Yes. Most of the operating costs like power, labour, maintenance and logistics are expected to stay within a normal and predictable range. As volume improves the cost per ton will naturally reduce because fixed costs get spread over more productions.

Sagar Shah:

Exactly, and that will aid your EBITDA?

Amitabha Bhattacharya: Yes.

Sagar Shah:

Okay, Thank you

Moderator: Thank you, Sagar. We will take the next Question from Pavan Mehta. Please go ahead. Pavan?

Pavan Mehta: Hello.

Moderator: Yes Pavan

• Pavan Mehta: Yeah, hi, sir. Thank you for the opportunity. Sir, our total capacity its revenue potential was around INR2,500 crores. Till when can we expect to achieve full revenue potential sir?

• Amitabha Bhattacharya: We have already given the guideline for two years, where 30%, 35% volume growth is there. If last year, next year this year 30% volume growth happens, next year 30% volume growth so I think whatever the existing capacity we have that will be utilized in optimum level. And we will be reaching -- see INR2,500 crores I accept in this platform that was very early stage where we are fixing our target in terms of value instead of in terms of volume, because at that time the steel realization price was very high. And we thought it will be continuing in the coming 4 to 5 years. But the thing is automatically it was changed and you are the better witness

So basically, we are not fixed on the top line in terms of value. Yes, in terms of volume it will be concluded by next year.

Pavan Mehta:

Okay. So secondly what is the status of Solar EPC plant and how much CapEx will be required? Where will the funding come from?

• Amitabha Bhattacharya: Solar EPC is not there, we are making solar renewable power plant which has 25 years power tariff contract with MSEDCL, in which we have 13 locations under PM Kusum competency we will supply power supply 60 MWh of solar power to MSEDCL, starting from September

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2028 onwards. That is as per the contract. Before that also we can start it. And it will be completed in a phased manner basis because 13 locations are there. Each location whose land acquisition will be completed. From the day land acquisition is completed our completion will take another 2.5 months. At the same time revenue will also start generating. So this is backed by the PM Kusum scheme. So we are getting capital subsidy from the central government directly. There is no involvement of any other state government or any other entity.

• Pavan Mehta:

So further what will be the debt position going forward? Will we be required to raise more debt or not?

• Amitabha Bhattacharya: Not much more. It is within the range, sir. And it will not impact to whatever the present scenario, in the consolidation figure it will not impact much more.

• Pavan Mehta:

Okay thank you sir.

• Moderator: Thank you. We will take the follow up question from Ishan Modi Please go ahead

• Ishan Modi: So, thanks for giving me opportunity for follow-up. My question is regarding the steel plant MOU signed with the Maharashtra government. So, I think we are signing the MOU for I think 3,000 almost, more than that, which is almost double than our market cap of our company. Do you like to give some parallel like why such a huge CapEx is planned with the government, and how we are funding? And like what are the phases and what are the timelines we can maintain to -- we can track to get that on live, and what are the benefits in a top line we are aiming for from that particular CapEx?

• Rupesh Kumar Gupta: So, Ishan in this, the MOU which has been signed has already been done, CM sir, he is a guardian to Gadchiroli district. And in that only we are planning to place this unit which is of INR3,135 crores, which has been already signed. There is no payment and this plan is basically we will do it for 1 or 2 years with our existing setup. Then what next? What we need to do after 2 years. Today it will take 1.5 to 2 years to complete paperwork and establishment.

Our target is after 2028 our flow will start in this particular unit. Till then there will be paperwork pollution clearances will come, acquisitions of land. There are many things to be done which is not easy. Today to do acquisition of land and build a new setup on it is lot of work. Plus, the subsidies we will get from there that is a major

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thing which we are planning to have as Maharashtra is a rich state which is giving the subsidies also, and owned by the guardian of CM, as a guardian of that particular district it will never fall down.

And third important thing that is on the raw material side coal and iron ore is also available. This project will not be done in one go. Initially we will go to the finish stage. Then we will go backwards, then it will be integrated. Our interest is from the day we start the plan, say for example if we start with INR300 crores, INR400 crores. And from that INR300 crores, INR400 crores our revenue should start. Then we will need CapEx further to that. We will get that revenue, then more CapEx, then we will get revenue. This way we will complete the project in 8 years. It is not one stage that I have a market cap of INR2,000 crores and I will invest INR3,000 crores there. This is not practical as a businessman no one can do this. He doesn't have money.

We have planned this in a very fantastic and leveraged way in which we have all the merits of how we will do it.

• Ishan Modi:

Okay. I think that's all from my side.

Moderator: Thank you, Ishan. Sir we will take the next question from Nikhil Kanade. Please go ahead.

• Nikhil Kanade: Hi sir. Thanks for the opportunity I just had one question. Like we are in planning For the CapEx and the current capacity is which we are doing it. So, what are the utilization levels as of today for the current capacity? And how this will be planned out going forward?

• Amitabha Bhattacharya: So basically sir, so far, we are running almost all if you say 60% of our installed capacity, we are running. Because as we are an integrated steel player, we are having so many products like sponge iron, MS billets, HR strips. These are the products are captively used. We are not going for sale. So basically, almost all 60% we are utilizing, whatever our installed capacity. And accordingly moving forward also the maximum level we can utilize of this total capacity all together maximum to maximum 70% to 75%. If we are installing 100%, we can utilize 75% of the optimum level.

• Nikhil Kanade:

Okay sir, thank you.

Moderator:

Thank you, Nikhil Sir, we will take the last follow up question from Smith Gala. Please go ahead.

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Smith Gala:

Thank you for the opportunity once again to the continuation to my last question. The remaining 56 acres that have been acquired balance, 150 acres approximately yet to be acquired, which month will they be acquired? And that too will be around INR50,000 per acre per annum cost?

• Amitabha Bhattacharya: It's on INR50,000 per acre per annum cost always, and for that we already have an aggregator, location wise aggregator is there, plus we also have some government land opportunity. Now after looking at feasibility and viability and substation distance we are executing the lands. Along with that, the legality checking thoroughly land checking because all this is barren land or agricultural land we are doing. By the end of you can say maximum January or February land acquisition will be done. And in between some projects and some locations; projects will come, from where you will get revenue on fixed rate. And to the extent of subsidy also will start coming in.

• Smith Gala: Balance contribution cost in all this, how much is remaining to do all this?

• Amitabha Bhattacharya: In terms of land acquisition, you are talking?

Smith Gala: In full project how much more balance cost to incur till now, which will be reimburse after the project is done.

• Amitabha Bhattacharya: We have not done much cost till now. On under land acquisition cost we have spent INR25 lakhs to INR30 lakhs, for the 56 acres of land we have taken. So not much expenditure not in crores also. This will be in full phased manner. This project is planned in which not much CapEx -- you don't have to have equity dilution or taking load on debt to complete the CapEx. It will be continuing in a phased manner in line with the government subsidy as well as with the revenue generation. You will not get much impact on that.

Smith Gala:

And whatever contribution you will do it will be fully reimbursed?

• Amitabha Bhattacharya: Our equity composition will be fully reimbursed. Company's investment will be fully reimbursed.

Smith Gala: Thank you.

Moderator: Thank you, Smith. Sir since that was the last question, Rupesh sir would you like to give any closing comment?

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Rupesh Kumar Gupta: Yes. I just have one basically permission is to all the stakeholders, to all the people on the call or off the call, company is always focused on increasing profitability, follow governance in their own way, plus our system should be improved, professionals should be enhanced. It's bandwidth from infrastructure side internal bandwidth system geographical range to cover all these we are doing our best to the industry. If anyone has any input, they can mail us across that we should do this addition to this business. We are okay to take that also. We are open for joint ventures also.

We are open for any type of expansion where profitability to the company, to the stakeholders, valuation everything that can increase that probability with all the ethics. We don't want to do any nonethical work in Hariom which is a prima facie thing. And we are doing it in a nice way in our own way. And we will continue as long as our effort is as India grows as long as stakeholders grow, we will work for everyone. India is first for us and will always be first for us. We are going in defence. So, there are many value addition chains where we have lots of work to do, and we will continue. So, it's not for one quarter or so. Long term perspective we are the best, we are the best, we are the best. This is all I can say.

Moderator: Thank you, sir. Thank you to the management team and thank you to all the participants for joining on this call. This brings us to the end of today's conference call. Thank you.

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