AIAENGNSEAugust 18, 2025

AIA Engineering Limited

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85turns

7analyst exchanges

2executives

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Management on call

Sanjay Majmudar

NON-EXECUTIVE, NON-

Kunal Shah

EXECUTIVE DIRECTOR –

Key numbers — 40 extracted

INR1,026 crore

d compares to 68,000 tons that we did in the fourth quarter last year. This translates to about INR1,026 crores of revenue and a realization of about INR170 per kilo. We've got INR12.93 crores of other operat

INR170

quarter last year. This translates to about INR1,026 crores of revenue and a realization of about INR170 per kilo. We've got INR12.93 crores of other operating income, which includes export benefits and

INR12.93 crore

nslates to about INR1,026 crores of revenue and a realization of about INR170 per kilo. We've got INR12.93 crores of other operating income, which includes export benefits and another INR108 crores of non-opera

INR108 crore

. We've got INR12.93 crores of other operating income, which includes export benefits and another INR108 crores of non-operating income and all of that translating to an EBITDA of about INR420.39 crores at 40

INR420.39 crore

another INR108 crores of non-operating income and all of that translating to an EBITDA of about INR420.39 crores at 40.46% EBITDA and a profit after tax of INR305 crores. That compares to INR259 crores of PAT

40.46%

res of non-operating income and all of that translating to an EBITDA of about INR420.39 crores at 40.46% EBITDA and a profit after tax of INR305 crores. That compares to INR259 crores of PAT in first qu

INR305 crore

hat translating to an EBITDA of about INR420.39 crores at 40.46% EBITDA and a profit after tax of INR305 crores. That compares to INR259 crores of PAT in first quarter last year and INR285 crores in the seq

INR259 crore

about INR420.39 crores at 40.46% EBITDA and a profit after tax of INR305 crores. That compares to INR259 crores of PAT in first quarter last year and INR285 crores in the sequential fourth quarter of last yea

INR285 crore

after tax of INR305 crores. That compares to INR259 crores of PAT in first quarter last year and INR285 crores in the sequential fourth quarter of last year. Moving on our other income of INR108 crores inc

INR88 crore

he sequential fourth quarter of last year. Moving on our other income of INR108 crores includes INR88 crores of treasury income, which is up from INR73 crores from first quarter last year and INR73 crores

INR73 crore

g on our other income of INR108 crores includes INR88 crores of treasury income, which is up from INR73 crores from first quarter last year and INR73 crores of fourth quarter last year. There is a INR19 cror

INR19 crore

NR73 crores from first quarter last year and INR73 crores of fourth quarter last year. There is a INR19 crores foreign exchange income, both combined taking the non- operating other income portion to INR108 c

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Guidance — 20 items

Kunal Shah

opening

“I think end of next quarter or the quarter within the next 2 quarters, we'll share more updates on, because it's our first time going out sort of India, and we are learning the procedures for both planned acquisition as well as various preproduction approvals and both appear to be a little long drawn than what we had originally estimated.”

Kunal Shah

opening

“But outside of that, we expect about INR50 crores of non-general maintenance, some land, some warehouse, all of that and about INR40 crores for the renewable -- balance part of the renewables.”

Sanjay Majmudar

opening

“And we do expect quite a bit of conversion-related news to start coming in the coming quarter.”

Sanjay Majmudar

opening

“Therefore, from a very clear-cut management standpoint, we are not at all worried and we do expect to return back to a decent level of volume growth from the next fiscal.”

Sanjay Majmudar

opening

“It's just a re-strategizing and now, again, going back on the track of normal growth, which we expect to start coming from next fiscal with complete clarity.”

Sanjay Majmudar

opening

“But we are still -- our target is to see what growth we can achieve over last year, but we have no certainty or clarity, and therefore, we are not giving any specific growth guidance for this year.”

Sanjay Majmudar

“I said, we are not giving any specific guidance about the growth in this year and our targets.”

Sanjay Majmudar

“We have not said that nothing will happen, but lot of efforts are going on, and I wanted to clarify that 100% from next year, we are on track.”

Bhoomika Nair

“perspective, given that there will be the 50% duty, do you think our volumes will be at risk if it were to come to play?”

Sanjay Majmudar

“The people are also in the hope sooner rather than later there will be some -- we were noting of BTA happening.”

Risks & concerns — 2 flagged

perspective, given that there will be the 50% duty, do you think our volumes will be at risk if it were to come to play?

— Bhoomika Nair

So that is where for us, it's sometimes difficult to break apart each piece and add up.

— Kunal Shah

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Q&A — 7 exchanges

Yes, you mentioned in the end that there would be kind of a flattish volume. I remember that in the previous call, we had mentioned about some growth and the benefits of the conversion efforts that we have taken to kind of start playing out sometime in this year, at least. So in...

Sanjay Majmudar

I reiterated that, I'm sorry, I'm interrupting you. I said, we are not giving any specific guidance about the growth in this year and our targets. And I said that we'll probably come back to you by end of Q2, let us see. We have not said that nothing will happen, but lot of efforts are going on, and I wanted to clarify that 100% from next year, we are on track. This year we are waiting little bit more for a few outcomes. Okay. Okay. Fair point. From a U.S. perspective, given that there will be the 50% duty, do you think our volumes will be at risk if it were to come to play? Can you repeat las

Thanks for the opportunity and my first question is again coming back to the -- from the previous questions like -- this very high level of pricing that we are seeing on -- I mean, almost like a INR170 per kg, do you expect that to sustain at least in a very near term, I mean compared to forged it seems to be a very high level of premium. So what is your take on it?

Kunal Shah

Priyankar I think realization when we have always maintained, it is not just a margin reflector, it's also the product mix that we do in a quarter. You -- there are -- there is also the price pass- through with this quarter has seen freight reduction, some level of freight reduction, some level of raw material reduction. So some of these costs have reduced, which will get passed on over a period. So two things have happened this quarter, price, product mix leading to a little higher realization and lower cost. And hence, you're seeing that price -- there is an abnormal margin this quarter, whi

Sir, I'm an individual investor. I have some two, three minor queries only. Regarding the cash we are holding on the books, is it for Welcast because the Welcast buyback was not gone through. So any plan to like utilize the same cash, which we are holding on the books?

Sanjay Majmudar

No, Devaan bhai, I think there is some confusion here. Welcast never had a new buyback, it was a delisting attempt, which was not successful. And that was a very, very insignificant amount actually. So this cash has been conserved for quite some time, considering the fact that we are very, very optimistic about the tremendous growth potential that the business has. And therefore, given the fact that at any point in time some or the other opportunity could unfold, we are a bit conservative and in the past also we have said that once we believe that the business has all the endeavors that we are

So my first question was on power and fuel costs. So if I look at your power and fuel cost as a percentage of sales, from FY '20 it was close to 10% and then it has been falling, so FY '22, 9.2% and now FY '25, 7%. So as the renewable power mix increases, where do you think this will settle?

Sanjay Majmudar

Renewable, see, at this point in time, we are, I think, about 35% -- 30% to 35% as the renewable level in terms of our actual credit that we are getting in terms of generation through wind and solar in our billing. We are investing about -- we are putting another 100 -- total 60- plus megawatts, which will take us to about 100 megawatts. So according to me, there should - - there is a very decent scope of further reduction. It should settle 7%, 7.5%. Sir, 7% already in FY '25 only you reach. So it should go close to 5.5% or 6%, right, in the next two years? Yes. It should reduce further. It wi

Hi. Good evening, Kunal. Good evening, Sanjay Bhai.

Kunal Shah

Yes, sir. Yes. Good evening. Could you talk about the mill liners, we commissioned a plan, have you seen stabilization? How is that ramping up and if you could also talk about, because that would have -- our strategy was to actually first get into the existing customers so that they know AIA, they know the AIA qualities that cross-sell opportunity was one that would have helped us. Correct. That's true. Beyond the mill liner, as you know, we've also -- the metal mill liner, we've also added the rubber composite capability. So I think as we went into the space as we understood the overall offer

Hi, Sanjay Bhai and Kunal Bhai. So if I -- AIA faced challenges over the last 3, 4 years, right? But if we just look at the industry volumes over the last 5 years, specifically mining, would you have a sense of how much the high chrome industry mining has grown in absolute terms?

Kunal Shah

High chrome is what our competitors are doing. So volumes in high chrome are largely limited to what both of us are doing, right? I don't know the number on the top of my head, but we'll just have to do that math. There is no new player for sales coming down. Exactly, not. No, but the competitor would have also gained some share from you, right, by way of in countries where there are duty structures. We are trying to understand how much is in place at the industry level. What I'm saying is if volume has moved between them to us or ask to them, the industry has remained flat and there has remai

Thank you so much. As always, Sanjay bhai and I remain available offline to clarify or speak on any other questions. Thank you so much, and have a great evening, everyone. Thanks.

Sanjay Majmudar

Thank you.

Speaking time

Kunal Shah

Sanjay Majmudar

Moderator

Bhavin

Bhoomika Nair

Varun Jain

Amit Khetan

Priyankar Biswas

Devaan Shah

Bhumika Nair

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Opening remarks

Kunal Shah

Thank you so much, moderator. A very warm welcome to everyone. This is Kunal. And as always, I've got Sanjay bhai on the call here with me, and both of us will walk you through the results for the first quarter of financial year '25-'26 and a broad update on the business. I will start with headline numbers for the business for this quarter and then we'll get into Q&A. We produced 59,500 tons, and we sold 60,156 tons in the quarter. This is flat as compared to first quarter last year. And from a sales standpoint and compares to 68,000 tons that we did in the fourth quarter last year. This translates to about INR1,026 crores of revenue and a realization of about INR170 per kilo. We've got INR12.93 crores of other operating income, which includes export benefits and another INR108 crores of non-operating income and all of that translating to an EBITDA of about INR420.39 crores at 40.46% EBITDA and a profit after tax of INR305 crores. That compares to INR259 crores of PAT in first quarter

Sanjay Majmudar

Just to add just to add this 50% duty that we are currently paying is nothing to do with the recent reciprocal tariff announced by the U.S. President, Mr. Trump. This was already applicable to us earlier under Section 232 from January, I think from February, initially 25% and then about one month ago increased to 50%. So I mean just to clarify, this has nothing to do with the current new wave of tariffs, we just -- because this we were anyway paying, customers are paying even as on today, this duty plus this 10-odd percent antidumping, which Kunal talked about and the supplies continue.

Sanjay Majmudar

Sure, okay. Of course, pre-empting a common question that how do you look at this current scenario? Because we have been doing around 60,000-odd tons of sales, we did about 250,000 tons, 255,000 tons last year. What could be the outlook for this year, etcetera. Pre-empting those questions, I want to just make it very clear that as we had indicated even in the last call, we are absolutely clear and bullish on the prospects of conversion for the large number of mills that we are looking at from the forged to our high chrome solutions. With this and tremendous work even in terms of re-strategizing our whole approach has gone into it. We are working with a very large number of mining customers right now at a fairly advanced stage of negotiation. And we do expect quite a bit of conversion-related news to start coming in the coming quarter. Therefore, from a very clear-cut management standpoint, we are not at all worried and we do expect to return back to a decent level of volume growth from

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