CMR Green Technologies Limited (CMRGREEN) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the first earnings conference call of CMR Green Technologies Ltd. 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. Should you need assistance during the conference call, please signal an operator by pressing star and then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Neil Mehta from Equirius. Thank you and over to you, sir.

Yeah, hi. Good afternoon, everyone. So, on behalf of Victoria Securities, I would like to welcome you all to the 4Q FY26 and FY26 Earning Conference Call of CMR Green Technologies. Today, from the management team, we have with us Mr. Mohan Agarwal, Chairman and Managing Director, Mr. Rangpur Singh, Director, Business Development, and Mr. Uyghur, Chief Financial Officer. Without taking much time, I now hand over call to Mr. Mohan Agarwal, Chairman and Director, for the opening remarks, followed by question and answer. Thank you. Over to you, Mohanji.

Thank you, Neil. Good afternoon, everyone. I am Mohan Agarwal. I am the CMD of the company, and it is my pleasure to be a part, to be here today and to interact with all of you on the first earning calls of CMR Green Technologies for Q4 and financial year FY26. It's my honor that for the first time, I am addressing our honorable shareholders. We truly appreciate your time and interest in joining us today to discuss our performance. First and foremost, I would like to sincerely thank all our investors who have overwhelmingly We have posed trust in us and have invested in the company during the IPO. We successfully listed on both the NAC and BSE on the 10th of June. The IPO size was 630 crores, which was a pure offer for sale. Achieving this milestone and completing our listing journey is a matter of great pride for us. In many ways, it reflects the confidence and belief that our stakeholders have placed. In our business model and in the long-term vision, this achievement is also a testament to the strong value proposition that we have built for our customers, supported by our commitment to quality, to innovation, to operational excellence, and to sustainable growth. So, before I go on further with the presentation, a little about myself. It's been 40 years that I've been working, and in these 40 years, recycling and primarily aluminium is the only thing that I have done. We created CMR in 2006, which is about 20 years back. It was created with me and my father, who is now the chairman emeritus, Koreshankar Agarwalji, and we had a vision to build an organization which is founded on the principles of Integrity on strong governance on ethics and responsible business practices. I am also very fortunate that my two sons, Akshay and Raghav, have joined our business and are actively contributing to its running.

Overall, I also feel that human

capital is really a big differentiator for a successful business, and for that reason, at CMR, we follow a people-first approach. We are a people-first organization, and we have built. A future-ready and resilient organization, which can adopt, innovate, and grow with the changing times. We have a strong professional leadership team of CXOs, which is heading all of our verticals. So, we are, like, both a... owner run and a professional organization into one. Now, as a testament to our focus on people, we have recently been awarded the 15th Great Place to Work certification in the country in mid-priced segment across sectors. Yes. This position last year was? Number 60. So, we think we have done some good things to be able to transcend such a large trajectory. Coming to CMR now, CMR is the largest in its field. We are four times bigger than our nearest competition in terms of our installed capacity. We also happen to be... Amongst the largest in the world, according to ICRA report on the industry recently, we are rated number 12 in the world, including China. In the automotive recycled aluminum space, what we produce is alloying, liquid alloy. The in aluminium. So, all those are mostly going to the auto sector. In the auto sector, we have nearly a 45% market share, which means that more or less every second vehicle that you see on the road, be a two-wheeler or a four-wheeler, it's made from aluminium supplied from a CMR. So, we have been able to build a very, very strong market presence. Apart from aluminium, we do other non-ferrous metals also, like stainless steel, zinc, lead, copper, brass, and magnesium. That non-aluminium portion forms about 20% of our sales, and 80% is coming from aluminium. Recently, We have, from the auto sector, we have diversified into two new sectors. One, we have built a beverage can recycling plant, put up in Odisha near to Hindalco Industries, where we supply liquid, recycled liquid metal to Hindalco. This is a very strategic initiative because this is supplying new metal to a primary producer. This also tells us that recycling is here to stay. Going forward, recycling is going to overtake the overall consumption of the aluminum metal and will become the dominant supplier of the aluminum. A new metal rather than primary. So, we have taken first step in that direction. Second initiative, which is also first in the country, is... They put up a large facility for producing recycled green billets and sheeting. Up to now, this was primarily being serviced by the primary producers with technology. And our experience, we have been able to produce very good quality of that product, which has got large acceptance amongst our customers. And it services the construction sector. It services the ever-growing solar panel manufacturing and solar electricity. So, during the last seven, growth is a strong focus for us. In the last seven years, we have put up seven plants, and as I speak, we are building two more plants. One is in a place called Shulagiri in Tamil Nadu, that is in an electric vehicle. Parts plant, so which is electric vehicle mobility, future mobility part. So it will be servicing all the future mobility solutions there. They supply raw materials to them. And the second plant is in Bawal in Haryana, which is our second plant in Bawal also, which has been done at the Desire of our existing customer.

So...

We already have given, we have already posted a presentation on our company. What I am trying to do is I am trying to very quickly go through that presentation as I am speaking. So, coming to liquid metal, liquid metal has big advantages, both economical, in economic because our customer is able to, by avoiding to remelt, he is able to make substantial savings. It's environmental because we actually contribute, we earn carbon credits. As I speak, we have 273,000 tons of carbon credits in stock with us at CMR, for which we have not recognized any revenue because there is no marketplace. But as and when the marketplace comes in, it will become a good source of revenue for us. And we continue to accumulate at least 70,000, 80,000 tons of credits every year. We also have taken periods on the safe transportation of liquid metal over the road and on process control at our customer end, which is going to further ensure that we maintain our dominance in the liquid metal space. Overall, if we see our total marketing, then we supply to mostly all the OEMs in the country. For two-wheelers or for four-wheelers, we also supply to most. All these tier 1s, auto-comp suppliers, and all these customers we service either as a single source supplier, where we are giving them liquid metal in those particular plants, or as major suppliers. Our relationships with our customers are as old as we are. We have very high repeat. Repeat orders. We have also a very, very sustainable and a very predictable sales. Because we have created, we are there very near to our customers. So as long as our customers need aluminum, we don't have a dearth of orders with them. In the non-auto space, also, we work with very large customers. Apart from Hendalko, we are working with Jindal Stainless. We sell to a company called Orubis in Germany. So, in fact, our customer is one of our biggest strengths. Now, CMR is also... The only company in the recycling space which has... Technical and marketing joint ventures. We signed two joint ventures with two very large Japanese companies in 2012, one with Toyota Kusho, which is a part of the Toyota Group in Japan, and another with Nikkie MC Aluminium, which is the second largest aluminum producer of Japan. So, with... And the third joint venture we have signed is called Nippon Light Metal. Nippon Light Metal is the largest aluminum company of Japan in the wrought alloy space, so that helps us to get better technology for the billets and sheeting guts that we have put up recently. All these three joint ventures that we have, we are the major. Our joint venture partners are in minority. We have greatly benefited in terms of technology and in marketing support from our JV partners. And as per our agreements, we don't have to pay any royalty to any of our joint venture partners. Coming to our plants, we have 13 plants across the country. The basic idea is be near to the customer. One, we can supply them with liquid metal for which we need to be in close vicinity with the customer, and otherwise also being close to the customer always helps to sustain the business. So, we are actually present in all East, West, North and South of the country. Another very strong USP that we have is that we very quickly adopt the best possible technologies as they become available across the world. And to kind of... Balance them with the big ITI advantage of having a abundant manpower, abundant trained, hardworking manpower, which make a big difference in segregation of scrap in upping the value of the scrap. The technology that we select also help us to improve our quality, to reduce our cost, to increase our volume, and we believe that our quality is amongst the best which is produced in the country. We have built the organization bit by bit over two decades so that we do not unlearn what we have learned. We have very strong IT and process integration. We have also eight copyrights which are all centered around our standard operating processes which ensure that We sustainably continue to practice the best practices and maintain efficiency in our plants and keep the costs low. Coming to the ESG, we are a recycling company. We are very proud of that. We contribute to the environment. We have been rated. Number six in the world on the SNP Global Corporate Sustainability Index for aluminium. One third of our power requirement is coming from solar. With our last year's production alone, we have saved millions of tons of critical. We have materials like power, carbon dioxide, water, bauxite, limestone. And we are a company where we have a zero discharge company. So all our plants are zero discharge. There is no liquid discharge. There is no solid discharge. Thank you very much. On the social front, we focus on supporting old age homes. In contributing to building of hospitals, on education to the underprivileged, and on local area developments across our plants. According to a CII study, we touched. 52,000 lives beneficially in the last year. So this is about from me. I once again thank each one of you for being on the call and for patiently listening to me. I will now pass on to Mr. Ankur. Ankur is our head. He is a director, and he is also our head of business development.

So, over to you on the street. Very good evening, everyone, and thank you, Mohanji, for giving me this opportunity to interact on this first-handing call with our respected investors. I will walk you through the key strategic updates and operational progress. I'm pleased to share that CMR green-ended FY26 on a very strong note. Continuing towards its growth trajectory, despite macroeconomic uncertainties and elevated logistics costs arising from the geopolitical conflicts, CMR demonstrated very resilient performance driven by disciplined disk management, agile execution, and strong operational capabilities. I would like to first highlight the key strategic developments that continue to shape CMR. This time, apart from DJSI, which S&P Global, which MD has already explained, we participated into EcoVadus assessment. This is a globally recognized sustainability rating system that evaluates companies on their environmental, labor, and human rights. It helps organization measure, benchmark, and continuously improve their sustainability performance. So, CMR has completed its ECOVADIS assessment and has been at 84th percentile and received bronze medal into this. So, this had been a very remarkable achievement for the first participation in ECOVADIS for CMR. CMR has also published a sustainability report, which is available at our website. Today, our installed capacity is about 6.15 lakh metric ton per annum. We continue to work towards ramping up our production of our newly operational units in Tirupati and Harsugada and to maximize its capacity utilization. Company has bought land in Future Mobility Park at Shulagiri, where we have already started building up our plant, and we have also building up a new plant in our Bavan location. So these two plants will see in this year, they will also come into operation. Coming to operational performance in FY26, Total volume increased by remarkable 24% to 80,381 metric tons. The aluminum segment reported growth in sales of 27% to 65,636 metric tons per annum by ramping up of newly added capacities, stabilization of some of the capacities, and also the ramping up of some ground field expansions which had taken place in prior years. On a quarterly basis, sales witnessed an increasing trend. On the other side, other non-ferrous metal segment also shown growth by 18% to 14,745 metric tons in FY26, as well as it increased quarter to quarter basis. So this has been the performance of CMR, which we are continuously seeing the growth trends. And we see that in future also with these new ground field and leading field expansions coming up, this growth will continue and the momentum will be. I will now hand it over to Mr. Yugal, our CFO, for the financial performance of the company.

Thank you, Ankur. Good evening, everyone. I am Yugal Bishop, Chief Financial Officer of the company. First, I would like to update on the consolidated financial results for the Apoi 26. The revenue is stored at rupees 8640 crore rupees, which reflect a year-on-year growth of 30%, which is driven by the increased volume growth and the operational efficiency. Aluminium products like liquid metal, ingot, billet, contributed 81% of the overall revenue, and the 19% contributed by the other non-ferrous metals. Complete Consolidated EBITDA for Diabay 26 at 449 crore rupees, which reflects a growth of 50% year-on-year basis, with a margin remains healthy at 5.2% or in 11,000 crore rupees per term. Consolidated profit after tax come at Rs 228 crore rupees, which reflects a growth of 47.30% on year-on-year basis. And the part and basis is Rs. 5,580 per term. And in percentage term, it is 2.6%. Coming to the consolidated quarterly performance Q4 of FY26 and Q2 Q4 of FY25. Revenue grew by the 45% on year-on-year basis up to Rs. 2,364 crore rupees. Abita is true at Rs.128 crore, which reflects a growth of 160% year-on-year basis, with a margin remains strong at 5.4% or Rs.11,400 per ton, which is supported by the operating efficiency and newly added non-auto product. Profit after tax for the quarter comes in at Rs.65.68 crore with a fat margin of 2.8% or per 10 basis for 1880 rupees. CMR is steadily progressed with a clear focus on scaling its core business and expanding its serviceable market, backed by over four decades of the recycling expertise, 13 eco-conscious manufacturing facilities, strong stakeholders support, and the robust capacity, and the future-ready leadership remain well positioned for the sustainable long-term growth. This is all about my side. Now I request to open the floor for the question-answer. Thank you.

Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and then 1 on their touchtone phone. If you wish to remove yourself from the question queue, you may press star and 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. Again to register, please press star and then 1.

Our first question comes from the line of

Maitri Shah with Sapphire Capital Partners. Please go ahead.

Yeah, hello, ma'am. What is it?

Yes, ma'am.

Yeah, hello, good afternoon. Congratulations on the listing. A few questions. Firstly, we are adding a lot of capacities this year. So, could you help me out with the capacity number we'll have by the end of FY27 in aluminium and in non-aluminium fragments?

Fy27, we will have capacity addition of, we are about 6,5000 metric tons capacity at this moment of time. And by Fy27, we will go to nearly 7 lakh tons of capacity. And about 80% of this would be aluminium and 20% will be non-aluminium.

Got it, got it. Secondly, if you could mention the EBITDA per ton on the aluminium side and also on the non-aluminium side?

We actually, Medhriji, the scrap is mostly together, mostly. So, we don't do a separation between the two, but our epita, if you see on an overall basis, aluminium, non-aluminium, and even we invest some amount of non-metallics also. So, everything put together, our epita is in the range of about 11 rupees plus in the last year. And we expect it to actually improve forward.

Okay, so any sort of steps we're taking to see the EBITDA improving right now? So, can I calculate the EBITDA at like margin basis? They're at like 5.2% for the year. Going forward, any sort of targets we have of taking it to like 7% margins? And how are we going to do it? Are we adding any value-added segments to the aluminum business? Or, yeah, just some color on the EBITDA growth.

Yes. One thing that in our business, you should look at EBITDA not as a percentage of the turnover, but as a rupees per ton. Because this is a commodity where the prices can very quickly move up and down. So that is one thing. Our quest for improving the EBITDA is an ongoing process. We are continuously looking at more volumes. So economies of scale, we will be looking at improving in technology. So through technological improvements. And we are looking at developing alloys with our customers that they need and with diversification in the sector like going to new metal for the primary producers, going to billets and sheeting reds in the rot alloy business. All these things are actually aimed at improving our EBITDA going forward.

Got it. So currently, we have just one plant on the billet and sheet. Are there any plans on increasing the capacity there or putting up another plant on the more value-added side of the product? And also, how do you see the mix changing? Like, do you expect the non-aluminium metals percentage going up? Because I think we signed an MOU within the Sun Zinc for a zinc alloy plant. So where are we with that kind of? Yeah.

Look, the ramp-up in the capacity at the billet and sheeting earth is going on very well. We think we will have to very quickly decide on a new plant in that direction. So, my team is evaluating... That aspect on the capacity, the place, and everything. So, the possibility of our putting up another plant there is... Hi, what was your second question? Hindustan, the non-aluminium portion and aluminium portion, what we have seen, we are diversifying into non-aluminium, but there is a lot of growth also in the aluminium. At the moment, the ratio is 80-20. I believe if both of them grow, and we could see a 75-25 ratio, but not a whole lot different because both aluminum and non-aluminium both are growing.

Got it, got it. And the capacity that you are putting in, what does CAPEX have the budgeted in for FI27?

The FI27, the capex, actually we already, about 200 crores is the capex that we're doing in FI27.

Gotcha. And with this capacity coming in online and we're putting in such big capex, how do you see the volume growing for FI27, FI28, any sort of growth targets you have on there?

Look, in FY26, we have grown 25% in volume. I expect similar growth to be maintained in FY27. 28, we, 28 would also be a good growth. I cannot At the moment, I don't have a number there, but twenty-eight also should be a good growth here.

Got it. And on the alums, you have a... Yeah, yeah, you cut.

Yeah, yeah, apart from... because you see there is also a very strong growth in the auto sector. Our presence is very, very strong. We have seen autorecording a 12% growth in these first two months of this year. Overall, the car is doing very well. It grew about 18% or so. And the two-wheeler also grew 12%.

So those are the sectors that we, so

we seeing a lot of headwind of growth from the auto sector over the next two years also, apart from whatever else that we are doing.

Got it. And just on the aluminium as a commodity, so there's been quite a rise in prices on the aluminium side because of the geopolitical situation. Once that eases out, do you see the realisation kind of staying at this position or these heightened realisations are something we expect to go down maybe six months from now?

Madhuri Ji, we have a very strong... Risk management policies. So we usually keep all our positions hedged. So these movement in the prices should ideally not affect us and we should maintain the same level of profitability or improve it with our improvements in processes and technology.

Got it. Just one clarification. Sorry to interrupt.

Matthew, ma'am, we request you to return to the queue for five questions, please. Thank you.

Thank you.

Your next question comes from the line of Bhavika Jain with Nivashai. Please go ahead.

Am I audible?

Yeah, yeah, yeah.

Yeah, firstly, many congrats for a good set of numbers. So, basically, I want to understand that, as you said, that our aluminum goes majorly in the auto segment. So, does it include both EV and non-EV? And plus, on which part does it go and what is the portion, like a percentage of, for example, a particular auto vehicle? We talk about how much is made of aluminium, and in that also, as we see that in primary side, there is quite, as India, we are on the surplus side. So, how we see the secondary aluminium replacing the primary aluminium, and in what factors we see that the replacement will happen.

Thank you. All right. Firstly, one by one, EV, in aluminum is a metal which has got very high strength to weight, very favorable strength to weight ratio. For light weighing is where aluminum has a very, very big application. EV, because of its very large weight of the batteries and a very low center of gravity, the aluminum usage actually in EVs is expected to be three times more than that in the conventional vehicles. So, in the conventional vehicles, aluminum is mostly used in engine and transmission. In suspension, in steering, these kind of the things which are there. The case of EV is used for battery casings, it is used for battery trays, it is used for motor covers, it is used in suspensions, and where it really differs from the ICE vehicles is that a lot of body structure is made out of aluminum extrusions and fordings, And in some very high-end cars, even in ICE vehicles, the entire body is made of aluminium. In EV, the body will progressively become more and more into aluminium in India. We don't have it right away, but going forward, we will see a large use of aluminum even in the bodies, in the EV sector. As far as the quality is concerned, at the product level, there is no difference in the quality, whether it is made from recycled or it is made from primary. Both meet the same specifications and the requirements of the product. Just to prove a point, auto mostly is 100% recycled. Your beverage cans that we drink our coke and beer from is 100% recycled. So there is a recycled aluminium and aluminium can be recycled a number of times. We have like 1.2 billion tons of aluminium in use today in the world. And all of this aluminium is available for recycling and not once. Repetently over and over and over and over again. So we are never going to run out of material in feed for recycling. I suppose I ask an audience question.

Yes, yes. So when we talk about such a large demand on the aluminum side for the recycled one, why we are not seeing the other recycled layers coming up with the capacity in this segment? Like Hindalco, of course, they did tie up with you. But why they are not coming up on their own? And as we know that the EPR mandate is going to be a compulsion from FY29. So, how we are so confident on the adoption, and apart from photo segments, what other segments we can see the traction in near term?

Look, firstly, coming on competition,

really we compete with ourselves. We want to be better and stronger with maybe each passing day. I am not in a position to really comment why somebody else is... Not doing it, but we see that CMR is in a strong position. So, anybody coming in will have a strong competition. That is on competition. Sorry, what is the second thing you asked?

The EPR mandate for recycling is coming in at 529.

Yes, the EPR mandate is there, and EPR mandate mandates that progressively all products have to have recycled content. It starts from about 5 to 10 percent and is going up to 60-70 percent in certain cases. So, I am sure that this EPR mandate would be easily met because there is a large amount of recycling which is happening. The new products, the technology developments in the recycled aluminium will help the producers to adopt recycled metal more easily. And in fact, the design of new products is now being done with recycling in mind, so which also helps in. Faster adoption of recycled metals. So all these things together will help in implementation of the EPR and in to achieve the targets therein.

Okay, my one question.

Sorry to interrupt, Bhavika, ma'am, we request you to return to the queue for follow.

Actually, the question is unanswered, that's why I...

Yes, yes.

Yeah, yeah, yeah.

So, basically, I also ask that, apart from this auto segment, with other segments, we are seeing attraction in near term, like where the adoption of aluminium recycled, recycled aluminium will increase.

Actually, I will tell you, mostly, except for transmission wires. Which are not alloyed, which are primary pure aluminium, that is which will continue with the primary aluminium because it is not alloyed. For all other applications, the aluminium is alloyed before it is used, and wherever the aluminium is alloyed, their recycling will come in. Because the biggest benefit of recycling happens when we maintain the same alloy and we don't change the alloy. So, actually, except for transmission wires, everywhere recycling will come in.

Okay. Thank you.

Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the conference, we request you to limit to two questions each and rejoin the queue for follow-up questions. The next question comes from Rahul Jain with P&B MetLife Insurance. Please go ahead.

Yeah, hi, sir. Thank you for the opportunity.

Sorry to interrupt. Raul sir, your voice is sounding a little bit grainy. Are you using any external headset or any other? No, no, it's just handset.

Is it okay, no?

Sir, there is a slight static which is coming only when you are speaking.

Is it okay?

It's still there, sir.

I think we go ahead. If we don't understand this question, we'll ask him again.

Sure, sure. Sir, my question was on scrap sourcing. We have many countries. Thank you. Thank you very much.

Yes, Raojiji, thank you. I will explain. Look, the demand for scrap across the world is growing. On the other hand, the supply also is growing, but the demand is growing faster than the supply. Now, to mitigate this potential risk, what we at CMR is doing is we kind of buy practically from all the six continents in the world. Our reach for sourcing of scrap is very high. We also source a lot of our material from domestically within the country. So we are focused on sourcing both from domestic and import. This talk of banning export of scrap or imposing export duties is nothing new, has been going on for quite some time from one country to the other. UAE has recently put a ban on export for the next four months, but when that happens, we go to another area. Though CMR is not really dependent on UAE, we have not been buying from UAE. China has never been an exporter of scrap. So China needs a lot of scrap. They generate a huge amount of domestic scrap, but they also import scrap. The EU is threatening regulations in which they want to ban the export of scrap to non-OECD countries from about May of 2027. They are also threatening imposition of 15% export duty on aluminum scrap from September 2026. I think if we look at the September 26th export duty scrap, then two things would happen that part of that export duty, the suppliers there will have to bear. Thank you. The kind of scrap that we buy from these economies is the scrap which those people cannot effectively or as efficiently process because those kind of scrap also need, apart from technology, human intervention. So those scrap will continue to flow to countries like India. Part of it the supplier would be here and part of it we will be able to pass it on to our customers. USA is the largest producer and exporter of aluminum scrap. There also some talks have started that they want to restrict export of scrap, but I suppose it is too early. And again, what we see in US, it's a very important case to be seen. They have a 50% import duty on aluminium. So that means all this crap that they are generating, they should be keeping that because aluminium in US is... Maybe $2,000 more expensive than outside the US. So they should actually be retaining all their scrap, but that is not the case. US still forms our biggest scrap source because it is the quality of scrap that we buy and that is not the scrap that those people can process themselves. Mexico, also there is a big There is no new development in Mexico. There is a very big auto industry which is there. So, Mexico needs all the scrap that it can produce. It was once a big exporter of scrap before they had their own domestic consumption go on. So, overall, we need to be very resilient, we need to be extremely cautious. So, we need to be extremely cautious, which we are, and it should not be a major problem. Next question, please.

Sure, also, if the list increases, but just to understand that we are still immune to...

No, no, it will fall under the ban. If they say aluminium scrap ban, then everything gets banned. But we will not see ban, even in the case of non-OECD country India, Europe is not going to ban the export of scrap. India is also applied for an exemption to that as a country. So the difficult or the complex scrap will continue to flow. That is our ambition.

So I have to interrupt. Raoul, sir, we request you to return to the queue for, sir, for follow-up itself, we request you to return to the queue because there are several other participants waiting for their turn, sir. Thank you. The next question comes from the line of Vinayak Perival with Exponent Drive. Please go ahead.

Hi, sir. Thank you for the opportunity. So, I wanted to understand. How do you compete on the two products you have, which is the molten metal and the ingots, when you go to the supplier? So, I think your customers also import a lot of aluminum ingots. And an interesting idea, how do you compete with these imported ingots and other molten metal suppliers in the country, and also other ingot suppliers in the country?

The import into the country is very, very small. Mostly the import comes in the south of India, where we are increasing capacity. Once we increase capacity and we are able to service that market, I think the imports would progressively stop there. Molden metal kind of locks in our customer very, very strongly with us. We deliver them 24 hours a day directly online. So a liquid metal customer is tied with us at the hit. So they don't move to anybody else. We don't move to anybody else. The competition is squarely addressed. The quality that we produce, and the consistency and the dependability of supplies that we bring ensure that our ingot customers also stay with us, and we don't lose them. You see, we have a very, very high repeat ratio with our customers.

So the reason I ask this question is because some of your customers have grown volumes to the tune of 2, 3x in the past 3, 4 years, while our volumes have not grown since like FY22. We have been doing around 3, 3.5 lakh. Tense of volumes. So, what is the gap? There is a gap being filled by our customers. Where are our customers getting the aluminum and what's from, if not from us?

I think your information is not entirely correct. One, at CMR, we have continuously increased our market share. That means in every single year, in FY22 and beyond and even before, we have increased our market share. We have outgrown the industry. So, I think your information is slightly not correct.

So, I was talking about Craftsman Automation, which is one of your big customers.

Which one?

Craftsman Automation. Our share has increased tremendously. We are today supplying maybe two acts or three acts of what we were supplying to them earlier, craftsmen and sunbeam. So, Craftsman, our share is substantially. Our growth with Craftsman is actually our share of business in the overall Craftsman space, including the Sunbeam that they recently took over, actually has grown.

Okay, okay, sir. So, but, sir, this is just a part of this question. I am not competing with the question, so. So, just if I could reiterate, so you were doing 2,90,000 tons of volume in 22, and in 25, you did 3.5 lakh tons of volumes. So, just wanted to understand why the growth had stopped in this period, and like, could we see such periods going forward also?

The industry had de-grown during that period. We still grew. If you see, at that time, we were basically servicing only the auto industry. There was degrowth in the auto industry for two years, post-COVID, but we grew. In 23, 24, I suppose, or 22, 23, there was degrowth in the auto industry, but we have had positive growth even in those years. So, subsequently, now we have also diversified into non-auto. So, which will ensure that we will be able to better manage any such situation which may again arise in future. Sure. Okay.

Thank you so much. Thank you. Your next question comes from the line of Arvind Arora with A Square Capital. Please go ahead.

Hi, thank you for the opportunity. Sir, you mentioned to the previous participant that recycled aluminum cannot be used for transmission sectors. So, is it because of the conductivity specification or some tensile strength or any other reason?

I suppose one, conductivity, and two, it is not alloyed. So, if you want wire for transmission through recycling, we will have to use only wire. I mean, I will correct my response that if I get wire as an input, transmission wire, and then make an aluminium ready for wire again or make a wire again, then yes, the recycled aluminium can be used even in transmission. Conductivity definitely is a very important consideration for that, but a wire-to-wire will be easily possible.

Understood, understood. Okay, fair enough. And so, the contact that we entered with the customer, so I want to understand the conversation, like is it something this to be cost plus markup or there is a link to commodity price and how we are having it because I can see there is a 166 crore rupees showing under OCI panel. Can we just throw some lights on that part as well?

Firstly, the pricing that we do with our auto customers is a monthly pricing, where any change in the aluminum prices or in the exchange is passed on to our customers, so the delta gets passed on to the customer, but we still have a price risk. We buy on day one, we sell on day 100. So my customer is giving me a price protection between day 60 and day 90. With that price movement, the customer takes on themselves. But our exposure from day one to day 60 has to be hedged. The OCI that you see is a mark-to-market situation on our existing hedge contracts. So, I suppose... I mean, this is something which is very normal and natural that the mark-to-market would be there. So, subsequently, if either the markets will go down and we will not, this OCI will go to zero or else the physical prices will go up and which will... Set off the OCI. Either ways, we just concentrate on maintaining our profitability, whether the markets go up or go down. So, OCI is a very normal thing when we are hedging.

So, sir, is it on inventory part? Like, what is the trigger when this will settle down?

OCI happens in a cash flow hedge transaction, which is representing our future predictable sales.

Okay, sir. Understood, sir. Thank you. Thank you.

Thank you. The next question comes from Nishita Sanklesha with Sapphire Capital Partners. Please go ahead.

Yes. Hello. Am I audible?

Yes. Yes, Nishita Ji.

Yeah. So, you mentioned to a previous participant that our current EBITDA power 10 is 11 rupees and that you are expecting it to improve further. So, if you could just quantify how much growth are you expecting in the EBITDA power 10 in S527 and going forward?

Hmm, at this moment of time, before... We come out with a projection. I would say that EBITDA should continuously improve. I don't want to put a number to it, but it should keep improving.

Okay, okay.

We are doing both in terms of technology and product. Yeah, new products, we should actually improve our EBITDA. Yes, please.

Okay, understood. And on the realization, so in Q1, FI27 so far, how has our realizations been like?

Realization, you mean the price or?

Yeah, the price, the price, the aluminum price realization.

The prices have been moving up especially since after the Iran-US war. So we have seen a big spike in prices post the war. So there is a lot of volatility which has come into. But we are really not so perturbed with that because either we are able to pass on or we are able to hedge our position. Either ways, we only target to maintain our profitability, which we should be able to do.

Okay. Thank you so much.

Thank you. Thank you. Thank you. Ladies and gentlemen, we will take that as the last question for today. I now hand the conference over to the management for closing comments.

Well, I... In the closing, I want to thank everyone once again for being here for taking out the time to attend this earning call. I hope I have been able to answer all the questions as they could be taken. I'm sorry that we had to kind of short close. Maybe I was a little longer in my answers, but I wanted to be more thorough. And thank you very much for we will continue to which is now we are a public company. We take it with a great sense of responsibility that we have towards now so many stakeholders and we will do our best to come up to or even exceed their expectations. Thanks a lot.

Thank you. Ladies and gentlemen, on behalf of Equator Securities and CMR Green Technologies Ltd., that concludes this conference. Thank you, everyone, for joining us and you may now disconnect your lines.