Man Industries India Ltd
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Q1-2026 Earnings Call
AI Summary
Earnings Call on Aug 12, 2025
Order Book: Man Industries' order book stands at INR 3,200 crores as of June 30, 2025, with around 80% coming from exports.
Profitability: EBITDA rose 39% YoY to INR 80.6 crores, with margin expansion of 90 bps to 10.86%. PAT increased 48% YoY to INR 27.6 crores.
Revenue: Revenue dipped slightly by 0.6% YoY due to deferred export shipments worth INR 150 crores amid geopolitical disruptions.
Growth Outlook: Management expects FY '26 revenue to be about 20% higher than last year, with stronger H2 performance driven by backlog and new orders.
CapEx & Expansion: Saudi Arabia and Jammu plant projects (total CapEx INR 1,200 crores) are progressing, with commissioning expected in FY '26.
Real Estate: Real estate revenue recognition slated to start in Q3/Q4, with annual revenue of INR 80–100 crores expected from this segment.
Guidance: Management guides for 15–20% top-line growth and continued margin improvement, with operating profit growth outpacing revenue.
As of June 30, 2025, the order book stands at INR 3,200 crores, with about 80% of orders for export markets. The bid pipeline is robust at INR 15,000 crores, and management is optimistic about converting high-value bids soon. Order execution is planned over 6–12 months, and new order inflow for the year is targeted at around INR 3,900 crores.
Despite a slight revenue decline due to export shipment delays, Man Industries delivered strong profitability, with EBITDA up 39% YoY and PAT up 48% YoY. Margins expanded, with EBITDA margin reaching 10.86%. Management attributes this to operational efficiency, better product/geography mix, and cost control.
Management expects revenue to be 20% higher for FY '26 compared to last year, driven by robust H2 execution. Margin expansion is anticipated to continue, supported by a shift towards higher margin and value-added orders, especially exports. Operating profit growth is expected to outpace revenue growth due to this favorable mix.
Key expansion projects are underway in Saudi Arabia and Jammu, with INR 1,200 crores in total CapEx. The Saudi plant (300,000 TPA, INR 630 crores) is set to commission in FY '26, and the Jammu seamless plant is also slated for completion in the same period, despite some delays from manpower challenges. Most equipment for Jammu is already on site.
The company expects to recognize real estate revenue of INR 80–100 crores annually starting Q3/Q4, with total cash revenue from the project estimated at INR 700–800 crores over several years. The first launch is scheduled for September/October, and the company has already received upfront payment of INR 70 crores.
Demand for LSAW and coated pipes remains high, especially in oil & gas pipeline infrastructure. The Saudi and MENA markets are major focus areas, with management seeing no major overcapacity risk in the next 3–5 years despite new entrants. The company has minimal exposure to the US (due to tariffs) and is investing in value-added capacity in the Middle East to maintain competitiveness.
Export shipment delays in Q1 were attributed to geopolitical disruptions, including the Iran-Israel conflict and logistics issues at Indian ports. Management expects these issues to normalize going forward, with missed shipments from Q1 expected to be recognized in subsequent quarters.
The Jammu plant benefits from the NCSH Scheme, allowing for an 18% GST rebate on sales and a 6% interest subsidy for loans. These incentives are expected to support the economics of the new facility over the next decade.
Thank you, Karthik. Good day, everyone. On behalf of Ventura Securities, I'm pleased to welcome you all to the Man Industries India Limited Q1 FY '26 Earnings Conference Call. Today, we have with us the management, Dr. Ramesh Chandra Mansukhani, Chairman of the company; Mr. Nikhil Mansukhani, Managing Director; Mr. Sandeep Kumar, Chief Financial Officer; Mr. Rahul Rawat, Company Secretary; Mr. Vijay Gyanchandani, DGM, Investor Relations.
Now I would like to hand over the call to Dr. Ramesh Chandra for his opening remarks.
Thank you, and over to you, sir. Yes. Good afternoon, everyone. This is Mr. Nikhil Mansukhani here. So as we've delivered a strong profitability and margin expansion, driven by favorable product and geographic mix, the Y-o-Y revenue declined 0.6%, largely due to the deferment of export shipment worth around INR 150 crores and due to geopolitical disruptions.
As of 30th June 2025, our order book stands at around INR 3,200 crores with an additional INR 15,000 crores in our bid pipeline. Currently, we are L1 in a few high-value projects, which are at advanced stage. So we expect these to convert and hopefully to announce these orders very soon.
Our internal production schedule shows promising momentum in H2 with both LSAW mills fully booked. This backlog, coupled with enhanced capacity utilization is expected to deliver meaningful operational leverage. Exports account for approximately 80% of the order book, a strong testament to our global positioning in the key markets. In our LSAW pipe business, demand is surging for both pipeline infrastructure and oil and gas transmission projects. Our technical strength across LSAW and coated pipe position us to fully capitalize on this growth.
Our strategic expansion initiatives in Saudi Arabia and Jammu are progressing well, and they are on track with operation expected to commence by Q3 and Q4 FY '26. We are establishing a 300,000 tonne capacity -- per annum capacity facility in Daman, Saudi Arabia with a CapEx of around INR 630 crores. This is scheduled to be completed within FY '26. This facility will help us offset import duties and big production closer to the core demand centers in Saudi Arabia and an approximate estimated turnover -- incremental turnover would be approximately INR 3,000 crores. Also, we are in discussion with the Saudi government for certain orders. And hopefully, before the plant comes online, we should have something in hand.
On the other hand, Jammu, the stainless steel seamless plant, the production -- the construction is going well, and that plant should also be up and running by FY '26. Out of the INR 1,200 crores CapEx earmarked, the total CapEx earmark for these 2 projects is approximately INR 1,200 crores.
With that, I now hand over to our CFO, Mr. Sandeep Kumar, to review the financials. Over to you, Sandeep.
Thank you, Mr. Nikhil. Good evening, everyone. Let me take you through the financial highlights. I'm pleased to begin by highlighting the financial resilience and strategic progress we have achieved this quarter in a challenging environment marked by the deferred export and moderated [ traction ] in raw material costs. Our financial performance stands testimony to disciplined execution and operational agility.
Let me briefly walk you through the key performance highlights. Total consolidated income grew modestly to INR 774 crores. Our EBITDA surged by 39% Y-o-Y to INR 80.6 crores, reflecting substantial margin expansion of 90 basis points to 10.86% from 7.73% in the same period last year. Notably, our PAT also increased by 48% Y-o-Y to INR 27.6 crores with net margin improving by 110 basis points to 3.6% from 2.59%. These results are mainly numbers. These are indicators of our strengthened capacity utilization optimization cost structure and strategic product and geography mix.
With this, we would like now open the floor for question and answer.[ id="-1" name="Operator" /> [Operator Instructions] We have first question from Darshil Pandya from Finterest Cap.
Sir, I wanted to understand since our business were affected last quarter, how are they for this quarter? Are we seeing some normalizing trend?
Yes. So Darsh, the Q1, Q2, the backlog is still there. So quarter is slightly better or similar to the current one, approximate. And Q3, Q4 are very, very robust because of all the deliveries and multiple shipments and new orders. The Q3, Q4 are much, much going to be higher than the Q1, Q2. I mean the entire revenue would be approximately 20% higher than what was there last year.
Got your point. And sir, also to understand what is the other income that we are getting since we are including it in the EBITDA margins. I wanted your thought.
Other income is part of the operation. It is incentive, ForEx, other things, which is forming part of the operations only. This is not from the leasing or some interest income or something. This is the operational other income. That's why we are adding that to our operation from operations for all our calculations.
Understood. Final question would be on the real estate side, sir, what is the number that we're expecting this year? Because last quarter, I can't remember around INR 360-odd crores we had accrued. So what are we expecting for this financial year?
Real estate for this financial year, the launch is going to be in quarter 2, quarter 3. So once the launch is done, we will be able to give you a more clear picture. But I think approximately INR 70 crores to INR 80 crores should be there. Again, that would come in Q3, Q4 because the launch of the project is, I think, in Q3, start of Q3.
[ id="-1" name="Operator" /> The next question comes from Shubham Purohit from SBI Securities.
Sir, a few questions from my end. Could you please provide the product-wise sales volume for the quarter?
We operate only one segment, which is the steel pipe and total revenue is coming from the steel pipe segment only.
In that, the total volume in, say, let's say, LSAW, HSAW, ERW?
We don't disclose that number because that number is coming from the total business together. So as a policy, we are disclosing the total revenue number only.
Okay. So my next question would be, could you like elaborate on the Jammu plant GST arrangement and the calculation for the rebate?
Yes. So Jammu, we are in the NCSH Scheme, which is national center scheme. Basically, it is 18% gross GST on every sale that you do in the country. And that is you can take the benefit over 10 years. So suppose you have an investment of machineries of INR 100 crores, you get a grant of around INR 300 crores, which can be utilized over 10 years. So you would get INR 30 crores in the form of entire 18% GST, number one. Number two, you would get a 6% interest subsidiary if you borrowed from bank. These are the 2 main subsidiaries.
So yes, this 18% GST would be on the sales, right?
Yes.
And what would be your investments in the plant and machinery?
INR 430 crores.
[ id="-1" name="Operator" /> Your next question coming from the line of Yash Sinha from MIPL Family Office.
I just want some clarity on the [Technical Difficulty]
[ id="-1" name="Operator" /> The next question comes from Mr. Bharat Kumar from Choice Institutional Equities.
[Technical Difficulty]
Your voice is not audible. Can you speak clearly? No, your voice is cracking. We cannot hear you.
[ id="-1" name="Operator" /> The next question comes from Riken Gopani from Capri Global.
Sir, firstly, if you could help understand for the first quarter, what would have been the volume performance compared to the same quarter last year?
Rikin, we can share those details independently.
Okay. Okay. And what we are saying is, of course, the third and fourth quarter will be relatively stronger. So you still see -- I mean, of course, there was some slippage because of the disruption in Q1. Q2, are there any specific factors that will still sort of drive broadly steady numbers Y-o-Y?
So the reason is basically a lot of backlog gets created once the first quarter. So second quarter is pretty much pushing through what the first quarter has been done. And Q3, Q4, a lot of the new orders, the production is going on in Q2 and the shipment is in Q3 and Q4. So pretty much all the mills are busy in Q3, Q4. So in fact, Q2, but the shipment will be in Q3, Q4. So we are seeing quite a sharp uptrend on Q3, Q4. Q1, Q2 will be similar, though whatever is missed in Q1 is going to be coming ahead in Q2.
Okay. Okay. And secondly, if you could help understand in terms of margins, while we did say that even in Q1, there was some impact because of the export shipments getting delayed. What has helped the overall gross margins and the operating margins in this quarter?
Basically, we are working towards getting orders, whether it be local or export, value-added products, the product coated and then CWC, some offshore pipeline work which we are doing. So overall, this year, the margins will be probably north of the numbers which have already come this quarter. So like we even said previously that we are working on the higher margins, and we are working on bid also on the projects which are higher margins. And currently, we are doing a little bit of less of water orders also locally. So that has also impact not really bringing down our EBITDA. So that's why EBITDA margins are, in fact, highest, I think, more than 11% at a stand-alone, I think, approximately 10.8% on a consolidated level.
Okay. So that's actually supported by the mix change within the domestic business also, not just the higher margin business because that is still to be executed in Q3 and Q4. So you will see further improvement in operating performance, is it?
I think actually, all the orders because 80% is exports, Rikin. So all the orders, whatever is going out are all good margin orders. So like we said, domestic as well as export, all the orders which are taken at a better margin. And we expect this...
Got it. Got it. And lastly, if you could throw some more light on the Saudi commissioning in terms of would you start seeing this generating business in this year in any way? Or it would only be from next year that you would see any meaningful contribution?
It would be next year.
[ id="-1" name="Operator" /> The next question comes from Pritesh Chheda from Lucky Investments.
Have you started executing the South Asian order, which you had announced some quarters back?
Yes, we have started execution in this quarter. And so yes, that would be coming up in the coming quarters.
Part of...
We have already started executing this order in this quarter, and we expect this order to complete by this year-end. So current quarter...
Sorry, go ahead.
Yes, please go ahead.
So the question was, was this the first quarter of that execution?
Yes. This is the first quarter we have started executing the Southeast order.
Okay. Okay. So basically, what you're calling out also to the previous participant is that this year, largely, we'll see better margin orders getting executed throughout the year. So the operating profit growth will be much faster than the top line growth. Is it correct?
Yes, that's correct.
And on the top line front itself, we are calling out 15% to 20% top line growth, correct?
Yes, correct.
Okay. Now on the Jammu plant in terms of the plant status, so has arrived for you guys? Or what is the exact plant status of Jammu?
So majority of the machines have been delivered. The construction of [Technical Difficulty] PV has already started. We should be in Q4 ready for hot trials and for some approvals as well, we will apply them. So 3 months there because of the problem of the war, all the manpower and everyone had left practically from the state. And then it was quite a big task for us to get them back. But now they are back to normalcy. And that is why the slight amount of delay. But all the machines and every major -- all the major equipments are already delivered on site.
All the equipments are already delivered on site.
Yes. All the major equipments are delivered on site.
So the extrusion press is it delivered or that is yet to be delivered?
That is getting shipped out on first week of September. It's under trial right now in Europe. And our people are already there, and it should get shipped out around September, some date in September.
[ id="-1" name="Operator" /> The next question comes from [ Pratiksha Singvi ], an individual investor.
I wanted to ask that given the recent U.S. tariff imposition on Indian exporters, there is likelihood of market shift from U.S. to non-U.S. destinations. Now UAE is an emerging potential alternative, how is your company planning to address the anticipated increase in competition in such markets?
So definitely, there will be slightly bit more competition. But under the product which we sell, which is API, we've been selling majority of the sales in UAE in the last 5 years have been by us. And in our business, the past track record creates a big differential on getting the business and not guessing the business. But we keep working hard towards it. We have some value-added plants, which we are putting in Middle East for getting the ICV so that we also get that business because now every country is protecting themselves, including Middle East and GCC.
So we have a small investment of a coating plant for getting the ICV so that we get the pipes also. So -- but U.S. doesn't affect us because U.S., we were not selling because of the duty in the past also. So currently also, we would not be -- no exposure in the U.S.
Okay. Understood. Next that I wanted to ask was that in the recent -- like last conference call, management indicated that current inventory buildup, it would be shipped in next quarter. I wanted to ask that what proportion of current quarter's revenue attributed to such inventory buildup?
What we said last time is true because inventory buildup in last quarter has been liquidated as I told in the previous question that we have started executing Southeast order. So if I take total turnover, around 30% is coming from that particular order in this quarter.
[ id="-1" name="Operator" /> The next question comes from Yash Sinha from MIPL Family Office. I repeat the question comes from Yash Sinha from MIPL Family Office. There seems to be no response. We have the next question from Jayshree from Trinetra Asset Managers.
My question is answered.
[ id="-1" name="Operator" /> [Operator Instructions] The next question comes from [ Pratiksha Singvi ], an individual investor.
Sorry, I missed a question. Last question that I wanted to ask from my end was that company's operating profit margin, if we exclude other income, it has declined from like 10% to 7% quarter-on-quarter. So what was the reason behind this divergence? And also you mentioned before that inventory was around 30%. So like material cost would also -- should have been declined because of this inventory buildup. So I want you to elaborate on that.
First of all, the other income, as I explained earlier, has been part of our business operation. It includes incentives and other export incentives plus ForEx. So you cannot -- when you're doing the analysis, please add other income also because this other income is not coming from the nonoperating assets. All the other income is contributing from the operations only.
Correct. From the only current business only. It is not getting generated.
So please add that into your business, part of sales and then you add. So there is a positive in the EBITDA to 10.86% at consol level, 11.37% at the stand-alone level.
[ id="-1" name="Operator" /> We have the next question from Pritesh Chheda from Lucky Investments.
Can you call out your outlook on the Saudi market in terms of the annual market size currently there and what do you see the annual market size heading to in the next 3, 4 years?
So if you talk about the LSAW, pretty much the market is around 2 million tonnes. And HSAW is around 1.5 million to 2 million tonnes as well. That's the market trend over the last 3 years, and we expect it to continue for the next 3 to 4 years with a lot of large orders already out and under negotiations from the government.
So basically, a 3.5 million tonne market will stay 3.5 million for the next year or what?
These -- around 3.5 million are year-on-year. The time line to execute would be between 12 to 24 months for each order. And that's why if you see last couple of years, there has been a large backlog because that's the quantity and the capacity -- capacity is lesser. So a lot of the mills are full for 3 to 4 years. That's one of the main reasons why we want to go there because there is excess business, and we hope to get that.
Okay. So capacity -- so what is -- so this is the demand? And what is the annual supply usually that happens in Saudi?
Annual supply is LSAW is approximately 800,000 to 900,000 tonnes on the higher side. And spiral is approximately around 800,000 tonnes, 700,000 to 800,000 tonnes.
So you said 0.8 million tonnes in LSAW and even in HSAW 0.8 million tonnes. So basically, the demand is 3 million, 3.5 million, the supply is 1.5 million.
Correct.
Okay. And that's where you are putting up that 300,000 capacity. And any other capacity which is coming up in the system? Because I think we heard on Welspun also wanting to expand.
Welspun is putting an LSAW mill because they already have equity in East Pipe who's got around 400,000 to 500,000 tonnes already. They are putting an LSAW plant, I think, of the capacity, 350,000 tonnes. And Jindal in partnership is putting around 300,000 tonnes as well for spiral.
Okay. I missed Welspun is putting LSAW how much 300,000 tonnes?
350,000 approximately.
Okay. And you said Jindal is putting 300,000. 200,000, sorry.
300,000, yes. Spiral.
They are putting LSAW. And what are you putting?
We are putting -- the Phase 1 is spiral and then also…
[ id="-1" name="Operator" /> The next question comes from Darshan Gangar from First Water Capital.
Just wanted to know, out of the INR 1,200 crores CapEx earmarked, how much has been incurred till date for Saudi as well as Jammu separately?
Yes. So Jammu, around INR 590 crores, INR 350 crores has been expensed and committed and another INR 240 crores would be done in the next 3 to 4 months. Saudi, approximately out of the INR 630 crores, INR 300 crores is committed and expensed and another INR 330 crores over the next 6 months.
Okay. Got it. And secondly, like to the previous participant, you mentioned the capacities. But broadly, say, 3 years down the line with the additional capacities coming up, is there a risk of overcapacity like maybe 3 to 5 years down the line or not as such?
With these numbers, no. But more and more players come, there's always a risk with the current numbers and the current people also who are putting it up, which will probably be the -- their plants will be operational in 16 to 24 months. I'm assuming we should be okay. But obviously, any other further new plants. Probably this would create, but the demand is, I think, currently, they're growing at around 6% CAGR would be minimum. So 6.8% is something around water, and then they have oil, gas, hydrogen, carbon capture, a lot of them. So I think for now, the next 10, 12 years, we don't find that there would be an overcapacity.
[ id="-1" name="Operator" /> The next question comes from Sahil Chopra from KIFS Trade Capital.
So my question is related to this recognition of real estate transaction. So how this real estate transaction will get recognized this year and in subsequent years?
What happened that total last year, when we did the agreement, based on the agreement, we got the inventory in the property. That inventory has been shown as a total flooring area inventory we got into our balance sheet. And as this inventory getting sold after the launch, the revenue for the differential amount at which we have recognized the inventory minus the market price will be shown as a sales in the balance sheet. And profit will also be accrued accordingly.
So approximately INR 400 crores to INR 500 crores PBT revenue would be coming in and then accordingly, the profit of that would be reflected over the next year…
That will come maybe after 5 years in 1 particular year or once a year.
Will come every year. This year will be slightly lower because it is the launch year. It will get October with all approvals, September, October, it should be launched. And then year-on-year, it will be approximately INR 80 crores to INR 100 crores. The total cash revenue with the company would be approximately INR 700 crores to INR 800 crores. And then the tax amount would be obviously less.
And what about that INR 70 crore upfront payment?
That is already received.
We have already received.
Received in March itself, last quarter.
Okay. Okay. So you are saying -- and what kind of margins we can expect on this?
It's market driven, but we are expecting a good income to the company.
The site is very close to new airport. That area is coming in with a big development, and we've seen good surge in the prices after the launch in September.
The revenue which is invested, we are making much larger return on it. The revenue which was invested, which has come back to the company is almost going to be INR 200 crores and above that, everything is profit.
[ id="-1" name="Operator" /> We have the next question from Aditya Pandya from [ Vyom Partners ].
Sorry, I joined the call a little bit late. So I see from your current presentation, we have about INR 3,200 crores of order book in the pipeline. So what is the time period of this order being executed?
Between 6 to 12 months.
From quarter 1. So most of 70% to 80% would be recognized this year, I believe?
Yes.
Got it. And this quarter has been a little stringent for us. So are we looking to expand it in new geographies?
Sorry, come again?
Are we looking to expand into newer geographies based on current quarter's performance?
We are already expanding in the nearby geography. When you talk about business and going and taking business in the nearby geographies, we are pretty much there most of the places. And wherever we are not qualified, we are also working on it. So there are a lot of orders in pipeline, like you can see the bid book is quite high currently. So we are very optimistic, and we are very hopeful that a few orders, which we are L1 should we should receive very soon.
Understood. Okay. And what is the EBITDA margin you are targeting on these new orders?
The EBITDA margin would be north of 10%.
[ id="-1" name="Operator" /> We have a follow-up question from Riken Gopani from Capri Global.
Yes. Sir, just I had one question on the order book and the order inflow. You've indicated the current order book size at about INR 3,200 crores. What has been the order inflow growth this year? And what kind of order inflow do you expect for the full year?
So we should expect approximately around INR 2,000 crores, INR 2,500 crores of new orders. by this year, so that we would have a robust order book by the end of the year and the opening order book should be quite robust. So -- and as most of our orders, when we are bidding, once we get the order, we place the steel, it's between 6 to 12 months. So approximately like we said around INR 2,000 crores, INR 2,500 crores and should have an order opening book of around INR 2,500 crores, INR 3,000 crores next year hopefully.
So just to clarify this, so INR 2,500 crores is your expectation for the full year?
New orders.
New orders.
Yes, new order inflow for the full year.
For this year now, existing ongoing year, yes.
Yes. So because if I were to understand, I think in the first quarter itself, you would have done about INR 1,400 crores plus of order inflow, right? New order inflow?
We -- I have to exactly check. I think, yes, approximately INR 1,400 crores is the...
We have received that order.
Sorry?
We have received this order in the Q1, INR 1,400 crores.
That's what I'm trying to understand. So INR 1,400 crores is what you have received in terms of new orders in first quarter. And for the full year, we are expecting to add another INR 1,000 crores of additional order inflow.
INR 2,500 crores more now from here. The total will be around INR 3,900 crores.
Okay. Got it. Got it. And would this number, let's say, for the first quarter, INR 1,400 crores that you -- how has it performed, let's say, compared to the same quarter last year?
The problem in our business is a lot of times the orders from the client, though it is confirmed every -- it comes in varied paces because some orders we need the advance, some order, we need the LC. Till the time we don't have the payment tool, we don't -- we try not to announce those orders until unless it's a government order. So that's why it is varied. But if you see the strike rate, pretty much we've been there around for the whole year between last couple of years as we are growing, we've been continuously increasing the order book.
Even in fact, this year, the order book is pretty much higher than last year. And going forward also next 2 quarters, I think we will probably have the highest order book of the company from the past. So I think we are doing better only.
Okay. Okay. Got it. And in terms of -- if you could give some color in terms of whatever new bid pipeline that you are seeing, which geographies and therefore, what margins do you expect from the bid pipeline that is, which geographies are seeing more bids opening up? And there, what do you see the prospects for margins?
Still the MENA region is most bullish, a lot of orders and then a slight bit of even Southeast Asia. But worldwide, a lot of activity, but these 2 areas would be pretty much more hot zone.
Okay. And both MENA as well as Southeast Asia would be superior margins for us in terms of overall company level margins, right?
Yes, better margin.
[ id="-1" name="Operator" /> The next question comes from Harsh Vasa from SBI Securities.
Sir, just one question. Sir, regarding the Jammu plant, like how is the GST calculation? Like example, in the first year, we do a sales of INR 100 crores. So like 18% on INR 100 crores, INR 18 crores will be the GST, which we can get a reduction or if you need to do a minimum percentage of like minimum...
Harsh, we need to do the minimum sales. Suppose we do INR 100 crores worth of sales, and we have 18% worth of GST. That's the credit we get. We have to pay the GST. We have to take the GST accountability from the grant. We have to pay the taxes of whatever we get, and then we have to apply after paying the GST to get the rebate from the government. That's the standard.
Okay. So example, sir, if we do INR 500 crores of sales, so that will be -- so 18% on that will be INR 90 crores. So that will be the cap, right?
Correct. For us, pretty much that is around about the right number which you put in. INR 90 crores to INR 100 crores.
[ id="-1" name="Operator" /> We have a follow-up question from Bharat Kumar from Choice Institutional Equities.
What is the geo mentioned in the call [Technical Difficulty].
We cannot -- sorry, we cannot hear you, Bharat. If you have a particular question, we can't hear you. You can put an e-mail and we will definitely reply back to you.
[ id="-1" name="Operator" /> [Operator Instructions] We have a question from Yash Mehta from [ Aart Ventures ].
Yes. Am I audible?
Yes, slightly better.
Yes. So I wanted to ask that what is the geopolitical reason that led to the delay in shipments, sir? Was it the Iran-Israel war?
It was all of them put together. It was the India, Pakistan. It was the Israel, Iran due to which the shipping liners were affected, ships coming, which we had booked were affected. Also, there was due to the shipment issues, there was a backlog even in Kandla Mundra. And that's one of the main reasons why we could not -- though the material was at port, we could not load it and send it out.
Okay. And sir, what is the outlook on the U.S. market? I think we don't have any exposure in the U.S. market. But do you think the recent tariff will put Indian companies at a disadvantage in the U.S.
So I think the outlook of U.S. is quite good, to be honest. For U.S. per se, it looks okay. We don't have any investment yet in the U.S. or exposure. Hopefully, once we are done with the CapEx and the company is doing better, maybe we will review to go to U.S.
[ id="-1" name="Operator" /> Thank you. That was the last question for the day. Now I hand over the floor to Dr. Ramesh Chandra Mansukhani, Chairman, for the closing comments.
Yes. So I thank you to all the investors and our directors and Board to be part of the call. Thank you.
[ id="-1" name="Operator" /> Thank you, sir. Ladies and gentlemen, this concludes the conference call for today. Thank you for your participation. You may disconnect your lines now. Thank you, and have a good day.