STEEL EXCHANGE INDIA LIMITED (STEELXIND) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to Steel Exchange India Limited's Q4 FY26 earnings conference call hosted by Kirin Advisors, Private Limited. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on the date of this call. These statements are not the guarantee of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all power spin lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star 10-0 on your touch-around phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Manali Bhor from Kirin Advisors Pvt Ltd. Thank you and over to Ms. Bhor.

Good day. On behalf of the Kirin Advisors, I welcome you all to the Q4FY26 conference call of Steel Exchange India Limited. From the management team, we have Mr. Bandhi Suresh Kumar, Joint Managing Director, Mr. Bandhi Mohit Sai Kumar, World Time Director, Mr. Bramya. Tela Peralu, Group Financial Advisor, Mr. V.S. Rakesh, GM Corporate Finance. Now, I hand over the call to Mr. Banti Suresh Kumar for opening remarks. Over to you, sir.

Thank you, madam. Good day, everyone, and thank you for joining the Steel Exchange India Limited Quarter 4 and Financial Air 26 earnings conference call. FY826 has been an important and progressive year for Steel Exchange India Limited as we continue to strengthen our operational capabilities, improve financial flexibility, and build a stronger foundation for long-term sustainable growth. For the last few quarters, our focus has... Remain firmly on operational efficiency, product optimization, disciplined execution, and strengthening the overall financial profile of the company. The results achieved during the year reflect the resilience of our integrated business model and our commitment towards creating a stronger and more profitable organization. During the year, we continued to stand on our position. In the long product segment under the trusted Simadri TMT brand, our integrated manufacturing setup, backward integration strengths, improving efficiencies, and strong market presence across Andhra Kadesh and Telangama continue to support stable business performance and long-term competitiveness. At the same time, the company undertook Several strategic initiatives aimed at enhancing governance, improving capital structure and creating a scalable platform for future growth. Coming to the financial performance, Quarter 4, FY26 witnessed strong sequential improvement across all financial parameters. Total income for the quarter student, 287. 7.0 crore as compared to 240.86 crore in quarter 3 FY26, reaching a growth of 19.45% at one quarter. EBITDA increased significantly to 50.10 crore from rupees 22.97 crore in quarter three, financial year 26. Reflecting a robust growth of 118.12% sequentially. EBITDA margins improved sharply by 788 basis points to 17.41% supported by operational efficiencies and improved business performance. Net profit per quarter 4 after it was strict today at Rs. 12.37 crore as against Rs. 2.28 crore in quarter 3 financial year 26, registering a strong growth of 442.80% quarter on quarter, while net profit margin improved by 335 basis points. To 4.3%, the sharp improvement in profitability reflects the impact of disciplined operational management, financial strengthening initiatives, and sustained focus on improving overall business quality. For the full year, FY26, the company reported total income of During the year, we also made meaningful progress towards strengthening the balance sheet to capital inclusion, debt reduction, and improvement in financial flexibility. The company redeemed. Rp43.19 crores towards NCD obligations in a single trance and achieved cumulative debt protection of nearly Rp68 crores over the last two quarters, reflecting our focused approach towards improving the capital structure and enhancing financial stability. From an industry perspective, the outlook for the Indian steel sector continues to remain highly The increasing. Government-led infrastructure development, rising investments in construction and housing, increased spending on railways and defenses by infrastructure, and continued focus on domestic manufacturing are creating strong long-term demands by work for the steel industry. In addition, opportunities emerging from institutional infrastructure projects and import substitution initiatives are expected to benefit integrated and quality-focused steel manufacturers like Steel Exchange, India Limited. During the year, the company also secured renewal of MES approval under the Ministry of Defense for TMT bath supplies, further centering our presence in institutional and infrastructure-focused segments. I believe this reinforces the company's credibility and enhances our ability to participate. In high-value and quality-driven projects going forward, further the strengthening of leadership and governance framework during the year reflects our commitment towards building a future-ready organization. The induction of experienced industry professionals and strengthening of financial oversight are expected to further improve strategic execution, operational discipline, and long-term value creation capabilities.

Simple alerts.

As we move ahead, as we move ahead, our focus will remain on disciplined growth, operational excellence, margin improvement, balancing strengthening, and sustainable valuation for all stakeholders. We believe the foundation built over the last few quarters, positions, selecting the limiters, strongly to capitalize on emerging markets. And one thing offers in the Indian steel sector. Further, the joining of global player in trading and mining, that is, IMR Group, as a strategic investor, subscribing to our equity towards warrants for value of Rs. 300 crore set. The company is further ensured with secure raw material sourcing for smooth operations and further scale up. With this, we would now like to open the floor for questions and discussions. And thank you, one and all. Please.

Thank you very much.

Ask further questions.

Sure, sir. Thank you very much, sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask questions may please press star and 1 on their touchtone phone. If you wish to withdraw yourself from the question queue, you may press star and 2. Vice-pents are requested to use only your handsets while asking our questions. Ladies and gentlemen, we will wait for a moment while the question queue assembles. You may please press star and 1 to ask questions. The first question is from the line of Sukrit D. Patil from iSight FinTrade Private Limited. Please go ahead.

Good afternoon to the team. I have two questions. The first question to Mr. Panthi Kumar is, what type of strategic levers are you prioritizing in FY26-27 to expand the company's steel production capacity, strengthen trading operations, and manage risk from raw material prices, volatility, and global demand cycles? Thank you. That's my first question. I'll ask you the second question after this.

Thank you, sir. Basically, as you know, the steel exchange has been strategizing various aspects for the raw material procurement supply and all that. With the IMR joining in steel exchange, we'll make a lot of change for us as far as the green steel manufacturing for our future prospects of growth. And taking it into large aspects. We have entered into some MOEs with the state governments for growth of the plant, for future this thing, that expansions. So, we are likely to announce those announcements as we formalize the project reports and all that. So, right now. As far as the strategy for Financial 26, it is there. Presently, we are in Andhra and Telangana markets. We like to expand in other markets also, whereby our trading and all that will be acquiring some conversion units in other states, whereby we will be improving on our brand image to be going into other areas because we have started one re-heating furnace in our plant. Which will enable us to manufacture up to 50,000 tons of rebars. And this will go entirely into different segments. And as you know, Vizag has been a potential growth area for various projects coming in and around. So this financial year will be a very, very fruitful year for steel exchange. Because we have got all the capabilities of growth and the present production levels leveraging on the strength of the existing capacities also. We are doing so that we can improve upon the brand image and we will be certainly taking up few more initiatives like green steel manufacturing and all that. And we will let you know once we make the whole listing in the picture. Thank you. Now, anything else?

Yes, the second question to Mr. Brahmaija is, what type of financial framework are we applied in 2027 FI to optimize capital structure, align debt maturity, and protect cash flows, and safeguard margins against steel price cycles and interest rate volatility? Thank you.

Yeah, so thank you, sir. Regarding this capital structure, as you have already seen, with the joining of the new investors, strategic partners, the company is going to get 350% of our new equity, and we would like to reduce the Though it is okay, we have already reduced last year from 18.75% to the 13% debt now. Now we would like to reduce closer to the sub-10 level rate, around 9%. So definitely there is going to be one savings on my finance cost going forward with this. So for that purpose, Either we will be using this equity money template to repay it and then freshly borrow it, or maybe with these improved results, we will go to the other banks, new banks to regulate the reduced rates. Number two, with these new lines of commercial supply, we are planning to expand our operations as our JMD said. That we are now installing the reheating furnace, which is going to improve our operational efficiency of the rolling mill by another 30-40%. So, with this, both on the reduction side on the financial cost and on the increasing operational efficiencies and increasing earnings, so the future looks better margin-wise.

Thank you. And best wishes.

Thank you.

Thank you. The next question is from the line of Sahil Kumar, an individual investor. Please go ahead.

Yeah. Good morning, sir. My question is to Mr. Suresh. Sir, congratulations, first of all, for getting IMR resources on board. So, when are you expecting the balance payment from IMR Resources against the share warrants?

Thank you, Sahil. Basically, this is a share warrant, this thing, what we have subscribed with them for 300 crores. And we expect it to be, very shortly, we have been talking to them so that this will be utilized for our growth part, what we are looking for, green steel and all that. So, we'll be coming up with the, so they are coming as a growth partners, mainly, for steel exchange, because we have got a sufficient land and all that. So, I think it will coming in next six months. Expect this to come in place.

Okay, sir. So, you answered part of my next question also. So, as you have got him on board as a director, Mr. Anirudh Mishra, so what do you expect now? That's a very positive development for the company. So, what synergies do you expect after he has come on board? What kind of additional operational or advantages for he being coming on the board, sir?

So basically, he is a large player internationally, and he is having wide experience in steel and steel marketing strategies. And he is coming on board and being a part of steel exchange. He is a real boon for steel exchange, I can tell you. Because we will be entering the European market strategically by his presence already being there in the European market. And we are looking for the new FTA arrangements with UK and all that in place. We feel that ElectChange will be exporting a lot of large steel quantities to European and other markets with the help of the global player, which we have joined us. Similarly, they will be supplying us all the raw materials required globally, whenever it is safe for us, to take this formula. So, it means it is a very large distance, and as for the growth path, we are going to... This is the only first step what they have come in. So this will, as a strategic investor, they have joined us. At a likely time, once our growth plans are planned completely, then I think it will be a large, this thing only, for steel exchange.

Okay, one last question, sir. So what role are you expecting from them in the future prospective growth of steel exchange, sir?

No, they are the growth partners. Basically, we have just made a formal arrangement to come into steel exchange by way of strategically, by way of share warrants. And they are looking at a large-scale expansion for steel exchange in various areas, looking at the market strengths of Indian scenario for manufacturing what is growing over the world. So, WISAC being a port-based area and all that, we'll be going to several electricians also at a later stage, but they're joining us will certainly make Steel Exchange a global company and a world-class company in coming times.

Thank you, sir, and all the best for future endeavors. Yeah, thank you, Saiji.

Thank you. The next question is from the line of Sudhanju Shekhar, an individual investor. Please go ahead.

Congratulations, sir, for a decent set of results. So, my question is on the capex, which you had announced earlier. So, on the greenfield side or further capacity expansion. So, whether we are expecting any significant turnover from that capex in this financial year? And the second question is, sir, on the debt reduction plan. So, with the warrants money coming in, what is the expected amount of debt reduction which we are planning for this particular year? Thank you, sir.

Yes, thank you, Sudhanshu, because you have asked good questions, but basically the money what you are getting from the investors, the ourselves or internal revenues will be very high. And which will help us in reducing the debt to a considerable level or it may become a debt free in coming times. We will plan, we are thinking, seeing it to happen very fast. It may be from the internal equivalents or from the share money. Once we get the money, we take a call on that because we have got some large investment plans also for the plant. And it will start in phases. And as far as the expansions which have been done already, they will come into operation by July end. So this year will be a very good financial year for steel exchange because the production capacity will be rammed up drastically and the debt will go down almost to negligible levels. So, your profitable will improve drastically this year.

Thank you, sir, and all the best.

Thank you. Thank you very much.

Thank you. The next question is from the line of Rajiv Maheshwari from Praj Investments. Please go ahead.

Good afternoon, everyone. Congratulations for a good set of results this quarter. I have a couple of questions. The first question is on what's the update status on the logistic park status? How far that has gone in terms of the port connectivity and bringing the whole ecosystem into place? I'll put my second question once this one is answered.

Yeah. Thank you, Maheshwariji. Yes, you have rightly said that steel exchange is having a large logistic opportunity in Vishakapatnam because of its own railway sidings and all that. So, last year, we have thought of spending to take the higher EBITDAs in the logistics side. Also, we have made one SCA logistics and infra company to take care of the All the logistic activity, by creating a private freight terminal and all that. So, it's already on job, sir. And we have entered into MOEs with the government of Andhra Pradesh for acquiring another 150 acres of land, adjacent to this land, which is connected to a green highway and to the ports. Very, very logistically, it is connected to all the ports. So, this makes a large opportunity for steel exchange to have good habitats in the logistic front also, and we are looking at strategic acquisitions in the logistic segment, where the logistic arm will also go into larger leaps and bounds, and similarly, we have entered wherever it is required, the logistic company also will be performing well.

A quick follow-up question on this. In the last con-call, I had asked you about the land bank. If I'm not wrong, you had mentioned that around 400 acres of land are existing in the mix of the con-call.

Yeah, 400 acres is the existing land parts of 400 and almost around 400 to find the 400 to 450 level. It is there. Over and above that, we have... We are here under the process of acquiring the land parcels to the extent of another 150 acres for the logistic park and another 150 acres for steel exchange manufacturing activity itself. These both have been entered with the state governments, last investment summit with state governments, whereby we were requesting them. For this growth and where they are giving a lot of jobs, means we have entered into an MOE for making a 1 million ton green steel plant. So, these were all the future investments for which we have done the plant and brought in the right investors to take that forward for the growth part. Similarly, in the logistics side also, we will be trying to group in large partners so that it will become a bigger business. And shareholders will be benefited from these opportunities completely.

That's great to listen because it definitely provides a long-term insight in the mind of shareholders. So, in total, we'll be having around 650 to 700 records of land altogether. Yeah, yeah, yeah, yeah, yeah, yes, yes. Okay, right. Now, the second question is lots of debt restructuring, debt reduction, interest reduction have taken part in the last couple of quarters. But I still see the finance cost has still 17 crores on the higher side compared to maybe 13 or 15 crores, which was earlier. So any specific reason for that or the outcome will be more visible in the coming quarters?

No, basically, I don't think it is not 70 gross per quarter. It is 7 and a half, I feel. And now it will go down further because we have almost, we are repaying the debt. The term debt was around 350 gross. It has come to 250 now.

This quarter we paid almost 450 gross. So still it will go down.

So and with the refinance, what we are planning. So we feel that the debt will be certainly will be going into very minimal levels so that our property will be increased.

Exactly, because debt is eating a majority part of the profit. So, if that is done, it will be really good in terms of the net profit. So, this quarter, it was not 17 crores, because when I went through the Q4 results, I got a feeling that it was 17 crores, the finance cost or the interest cost.

Mr. Brahmaya.

Mr. Brahmaya, can you confirm on that?

Yeah, so your point is that why the debt cost is more compared to the...

Yeah, yeah, in spite of taking so much of pain and getting the restructuring part and all, still the interest cost is, in fact, surprisingly higher compared to QOQ or YOY.

Okay, no, no, I think when you look at YOY, it is less only, 19 crores of last year in the same quarter.

Yeah, very less, but if you see QOQ, it's from 13 to 17 crores.

Yeah, so what happened? Let's see, when we are raising these new loans, there are some costs attached to these new loans that is also coming in the last quarter, number one. And added to that, trade finance led also. Not only this, there is supply trade finance also is there, which is added in the current quarter, but going forward, that will not.

So, coming quarters, we can expect it maybe 10 or below 10, so that we get more profitability out of the...

Before then, it will be around... 12-13.

Actually, it will still be around 12-13. But once we reduce the debt considerably, going ahead, it should be the minimal in the single figures, right?

Yeah, so as of now, current debt, whatever we have, around 274%, and that we take it around 12-13%. Okay, which works out to around there. 3.75 into maybe 3 months. That's going to be around 10-11 crores. Plus, there will be some of our working capital interest also.

So, working capital will have another option. Anyway, that's a part of it. After this study, at least we were expecting a gain of maybe at least 5 to 6 crores, which may be visible in the bottom line. In total, in total. Anyway, if it comes in the coming quarter, it's fine. I have a suggestion. This con call, why are we not having it on a quarter basis? It happened last year, then again, it's happening this year. So can we have it on every quarter so that shareholders give a heads up on what, how things are going and get a clarity on things?

Yeah, we will work for that, definitely. Thanks for your suggestion.

Yeah, okay.

That's it for my side, yeah. Going forward, we'll do this thing.

Thank you, sir. We'll take the next question from the line of Neek Chawda, an individual investor. Please go ahead.

Yeah, tell me Chawda. Yes, sir. Congratulations for the good set of numbers, sir. And I am joining hands with Steel Exchange, which is a very big positive for the company. Thank you. Thank you, sir. So, sir, this year, quarter four has been really good for the company. Do we expect this performance to continue in coming quarters?

It should be better, not continue in the same. It should be better. What we have to see, this quarter four is fine, but the coming years, it will be better.

So, we will maintain the same margins in coming quarters?

Yeah, mainly, basically, this is a steel cyclical industry and all that. Presently, the markets are very buoyant. So, we expect that to, if it continues, it will be there.

Okay.

So, my next question is, Sir, Google has announced 15 billion investment in AI hub in Visejag.

Yes.

Since we are an established brand in this part with Simadri brand, so do we expect this big investment in AI and other people also coming, we will have good business or something coming from that side?

Yeah, yeah, because basically we are also already empaneled with the Google partner Adhani, who is building these things, and most of our supplies will be... Going from our Simadri, this thing. So we are already on the job. Not only that, basically in and around Vishakapatnam, there are large investments. Like we are already empaneled with Tatsalar Mittal as a vendor to them since last several years. There also is the 15 lakh crore investment which is coming up, which is very nearby us. Similarly, the capital of Amaravati which is being built. So we are all registered suppliers to this. So we expect that's the reason why we are ramping up the capacity of our reheating and all that, so that our production capacities will be more, and we will be able to sell. And our brand is an approved brand in the state of Andhra Pradesh. So we will certainly be having an advantage of these products in the state of Andhra Pradesh.

Okay, so my next question is, we have said that we are doing some, the capex is underway, but when do you feel this capex is done and will be reflected in the books from second quarter, third quarter, by when it should be reflected in the books?

Yeah, second quarter onwards.

And that will be a significant jump for us?

Yes, sir.

Thank you, sir. Thanks for answering the question, sir. All the best, sir. Thank you. Thank you. Thank you very much.

Thank you. The next question is from the line of Pratik Shrivastava from Nivesh Wisdom. Please go ahead.

Thank you, ma'am. So, first of all, congratulations to the management on doing a fantastic job of turning the company around and improving the financial. Sir, my question is, my first question actually is on the, maybe I missed it when you were probably earlier describing. Can you, if you have not described it, can you do the, can you say that again? What were the, in terms of the volume, what were the TMTV bar sales volume for Q4, FY26, and entire FY26, and entire year?

Yeah, just, thank you, Pratikri. I can just read out. Rebar for Q4 is almost 50,000 tons, means 49,768, and last year it was around 41,000, last quarter was 39,000, almost 10,000 jump was there in this thing, as far as the production quantities are there.

Okay, and moving forward, let's say for Fy27, what is the volume we are targeting, sir?

Please, starting with the next quarter onwards, means it will be almost double. It may be doubling, the capacities will be mostly doubled.

So that is for the full year. Fy27, we are saying we will double the volume. Yes. Got it, sir. And what is our EBITDA per ton, sir, again, for FI25, FI26? And how I've wanted to know, understand the, you know, numbers, how are we improving on the EBITDA per ton.

EBITDA is all there, it depends upon the tonnages, what we manifested on there. So right now, last year, what was EBITDA? All right. Last quarter, it was 9,500. 9,500 per ton. So, but in a year quarter, it was around 6,000. Average EBITDA is around 7,000, 6,000, 8,000, 7,000 rupees. Average yearly average.

Got it. And what would be the guidance, sir, for coming quarters?

In the same range, basically only your improvement of the quantities will be there.

It may help having a little better profitability.

Means the EBITDA may improve a little further. Because of the increase in the protections available, so the costs may go down. Fixed costs will go down. Because of that, there will be a little difference. See, basically it depends upon the... Market rising, the steel markets which are there. Right now it is around the 7th.

Got it, sir. My second question is more on the power segment. If I look at and if I'm understanding it right, the power segment was something where the revenue fell, right, sir, from around. Yeah. So why was that? And then can you give an overall picture? What are we doing to reverse it?

No, once some capacity expansion which we are doing, some consumptions will improve because of that thing. The remaining also, we are trying some data centers and all things are coming in the Umbra. We expect them to tie up with various other players. And we are taking some kilns, refurbishments and all that. Because of that, it was the... Down last year.

Got it, sir. Are we seeing any sort of pressure from this war, sir, ongoing war on our raw material?

Actually, we are insulated as far as the war part is there, only for some diesel cost which may now, and also we don't have much of impact. Because our basic raw materials, what we pursue, are all locally only, for coal and both iron ore and everything. And since we are a local player initially, and scrap supplies, also we are getting it locally only. So we don't have much of any war impact as such.

Got it, sir. Okay. Thank you. Thank you for answering my questions and all the very best for the future.

Yeah.

Thank you, sir. Thank you.

Thank you. A reminder to all the participants that you may please press star and want to ask questions. The next question is from the line of Pankaj Motwani from Equirus. Please go ahead.

So, thank you for the opportunity. So, my first question is like, so, I just want to understand what is our current capacity utilization of the LEC and TMT bar. When you expect these facilities to hit the steady state? Can you speak? Yes, sorry. So, I was asking, what is the current capacity utilization of TMT bar and bullets? And when these facilities can, when can we expect this utilization to hit 85% to 90%?

Yeah, so, currently, I think I would like to give the first one information. This tag end of the last year, we had increased our lead capacity and recharge capacity by around 44-45%. Okay, after the enhancement, though our productions are remaining more or less slightly increased compared to the last year, the percent-based weight we have reduced because of this enhanced capacity brought into the operation. So currently our TMT is around the 46-47 percent we are building in the operator last year. And it was billet is around 55 or something, 56%. But going forward, if you look at once, as I mentioned in my first question, that once I complete my reheating furnace, then my rebar, means capacity utilization will go to 70% less because I can source my billet from outside also and then increase my capacity of utilization. So, this year, we are expecting as well as, and because we have taken some repair capacity and capital repair work in our SMLS plant also. With that improved, I think, we are expecting around 70%, plus we will go in this current year for both these things, 70 to 75%.

Got it. And my second question, yeah, continue. Yeah, so my second question was, yeah, sorry.

Please go ahead. I am done. Yes, sorry. Okay.

So, so my second question was, like, can you share your planned capital allocation strategy going forward? So, particularly in respect of debt reduction or increasing capacities or acquisition of landline, like, what is your priorities going forward? And also, you can, like, mention the timelines for each of these and also the funding sources for each of these.

I would like to take that one. One moment. I have a game you would like to take part.

Basically, as we are well aware, we have got some strategic investors who are bringing us around 300 crores, some share warrants, which we are likely to get in the coming times. So the funding is coming already, which is available for us there. And internal accruals, whatever is generated, are there. So these amounts will be utilized for the growth of the plant. So, we have made a plan of growth with the state government as to get some incentives for the expansions. So, these are all underway. Once the plans are finalized and all that, it will be declared by way of, we will be first making a groundbreaking ceremony for that 1 million ton in the coming times and all that. So, then we will certainly give you all the details. But what will be the investments? Essentially, they are in this stage only. So, as far as the land banks, are they wrong? That we have to acquire still. Other land banks. We have got existing land banks.

So, that is our future growth only. And what is the KPIC guidance for FA27? How much KPICs we are planning for FA27?

The KPEX, basically the existing KPEX will come for a completion in this year itself. That is the reheating and the refurbishment KPEX of the harnesses 25 to 4 watt we are having. We are doing a KPEX effort on that part. So, because of that, then some killing this thing will be done this year. This year we are expecting the growth of our existing plant itself portion. The new CAPEX will come in the, once we do the groundbreaking, all that, it will come at a later stage, because we have to have to, our strategic, what is the size of the plant, and further on, we have to finalize on that part. One year down the line, all the CAPEX will happen.

Okay. And last question, so like this quarter we have, our EBITDA margin was improved to 17% versus the earlier range of around 11% to 12%. So how should we think about sustainable margin going forward? And what were the factors in this quarter which led to the improvement of the margins?

The first two quarters were very bad, as you see. Last year, it was low. The last two quarters have improved drastically. We feel the steel markets have started improving on, and especially for us at Andhra and Vishakapatnam, being a local player, we expect to have a sustainable EBITDA margins in the coming times, and improved growth of our existing rebar mills will help us to generate more EBITDA compared to... Last financial years and with a better profitability. That is what we have in mind.

So, can you quantify the margin like which you are thinking as sustainable for?

You can ask for the 7,000 rupees margin. 40,000 to 50,000 tons will be the average. You can double the capacities. I have given the capacities will be doubled. So, naturally, your profitability in all will be increased.

Got it. Yeah, that's all my questions. Thank you.

Thank you. The next question is from the line of Rajiv Maheshwari from Praja Investments. Please go ahead.

Thank you for taking my question once again. My next question is on the pledge shares. It's been observed that the company is operating on 100% pledge shares since quite a long time. So, any thought the management wants to give on reducing it, or are we okay to continue this as a strategic decision?

Your debt will go down. See, it's in the banking system. We went to a bad patch 10 years back because of our... We have been reducing the debt from 24% from Edelweiss to NIO capital 18.75. From 18.75, we bought it to 13.1. And now we are trying to go for a refinancing of the existing debt, which will be very low. But that with the working capital, it will come to around 9% and all that. We feel that... When we do the refinancing, all our pledges will be released by the banks. So right now also, it is the banking only, because it has been coming through there.

And the asset banks which are there, there are almost 2,000 crores of asset banks of the company.

There's the size of the plant, what it is there. And the debt is very low. Only since it has been continuing at takeover and reducing, we have also not insisted on them today. But certainly we will be getting it released. Once we leverage all our finances, what we are getting through IMR, we will be requesting them to release all our cash shares.

In coming times, the cash shares will be released completely. Okay, that's great. The second part is we have already witnessed the sale for April and May for the current year. So what's the percentage of growth if we compare it to YOY or Q&Q? How's the current market scenario for the month of April and May in terms of the growth?

Yeah, so for the month of May, it was in continuation with the quarter four only, but because of the heat wave across India and this war, it was a little escalating, May a little slump, but again, we are sure we should be recovering it in June.

So was April only May was impacted as a quarter or May? A little bit, yes, not much, but yeah. So, are we still okay?

Hello? We are very good. So, if I say quarter four is great, April is great, May is good.

Okay, okay, okay. So, basically, the growth in April was quite good, May may be not that good, and again, going forward, June, it may again pick up.

Yes, yes, yes, yes.

Okay, that's fine.

Okay. This is over the quarter, like because of the monsoon, quarter 1 end and quarter 2 might be a little dull. Quarter 3, quarter 4 will be picking up drastically. But now we are reformishing and once the re-eating furnace starts from the next quarter, we will be having a great impact in the productions and EBITDA margins going forward in second quarter onwards.

Okay, so it will be visible from Q2 itself.

Yes, yes.

That's great. Finally, just a suggestion for having a quarterly investor's fault.

Finally, look into it.

Please look into it.

Thank you so much.

Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to Ms. Manali Bhur for closing comments. Thank you and over to you.

Thank you, everyone, for joining the conference call of Steel Exchange, India Limited. If you have any queries, you can write to us at research at greatkirinadvisors.com. Once again, thank you, everyone, for joining the conference.

Thank you.

Thank you, members of the management. On behalf of Kirin Advisors, Private Limited, that concludes this conference. We thank you for joining us and you may now disconnect your line. Thank you.