Balkrishna Paper Mills Limited — Q3 FY26

Balkrishna Industries Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=pzFbBIL_p8I Published: 3 months ago

0:00 Ladies and gentlemen, good day and welcome to the Bal Krishna Industries Limited Q3 and 9 months FI26 earnings conference call. 0:10 10 seconds This conference call may contain forward-looking statements about the company which are based on the beliefs, opinions and expectation of the company 0:17 17 seconds has on date of this call. These statements are not the guarantees of future performance and involve risk and uncertaintities that are difficult to 0:25 25 seconds predict. 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. 0:36 36 seconds Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. 0:47 47 seconds I now hand the conference over to Mr. Rajiv Podar, joint managing director. Thank you and over to you sir. 0:56 56 seconds Thank you Steve. 0:59 59 seconds Good morning everyone and thank you for joining us today. I would firstly like to wish all of you a very happy new 1:06 1 minute, 6 seconds year. Along with me I have Mr. Baj senior president and director commercial and our CFO 1:15 1 minute, 15 seconds Mr. Sati Sharma senior president and director strategy and business development Mr. Ravi Jooshi our deputy 1:23 1 minute, 23 seconds CFO, Mr. Sushil Mishra, head of accounts and SGA our IR advisers. 1:31 1 minute, 31 seconds Let me begin with performance updates. 1:35 1 minute, 35 seconds The geopolitical and macroeconomic environment continues to remain challenged and the situation with US tariffs remain 1:43 1 minute, 43 seconds unchanged. Despite these headwinds, we delivered a strong sequential improvement during the quarter. Our 1:51 1 minute, 51 seconds overall sales volume increased by around 15% quarteron quarter in the US market. Despite the ongoing 1:59 1 minute, 59 seconds tariff situation, our strong product quality, brand positioning and by sharing the tariff impact with our 2:07 2 minutes, 7 seconds channel partners, this has enabled us to regain some of the sales momentum. 2:13 2 minutes, 13 seconds India continues to outperform all markets. The positive momentum witnessed in Q2 post the GST reduction has 2:22 2 minutes, 22 seconds sustained into Q3 as well. This has been supported by broad-based demand across channels and product segments in India. 2:32 2 minutes, 32 seconds For Europe, it is important to note that the EUDR norms which were to get implemented from 1st January 26, the 2:40 2 minutes, 40 seconds same has now been deferred by one year and is now likely to be implemented from 1st Jan 27. 2:48 2 minutes, 48 seconds I would like to take this opportunity to thank and congratulate the government of India for their remarkable efforts on 2:55 2 minutes, 55 seconds signing the landmark FDA with EU. We believe this will allow for further seamless trade between the two geographies. 3:06 3 minutes, 6 seconds Let me now share some other key highlights. 3:10 3 minutes, 10 seconds Aligned with our core value of giving back to the society, we have dedicated a state-of-the-art sports injury and rehab 3:17 3 minutes, 17 seconds center at KM Hospital in Mumbai. This 15,000 ft² facility is amongst the largest of its kind in a government hospital in western India. 3:27 3 minutes, 27 seconds Further, BKT has featured on the wall of giving at Tata Memorial Hospital in Mumbai. This is in recognition of its 3:35 3 minutes, 35 seconds long-standing commitment to supporting access to highquality by us. This has been evidence based on 3:45 3 minutes, 45 seconds this is an evidence based and affordable cancer care center. 3:51 3 minutes, 51 seconds In addition, as a testament to our comprehensiveness efforts on the ESG front, we have established an S SNP 3:59 3 minutes, 59 seconds global corporate sustainability assessment score of 58. This placed us amongst the leading tire manufacturers in terms of sustainability performance. 4:10 4 minutes, 10 seconds In the sports engagement, I'm happy to share that BK retires is the official partner with all the five women's uh IPL 4:18 4 minutes, 18 seconds teams franchises in a landmark multi-team deal for 26 season. This partnership will expand our cricket 4:26 4 minutes, 26 seconds footprint via our association with every women's Premier League team of India thereby strengthening further 4:34 4 minutes, 34 seconds strengthening our brand visibility and reinforcing our commitment to sports and also to women's sport. 4:41 4 minutes, 41 seconds Let me update you on the capeex front. 4:44 4 minutes, 44 seconds During the quarter, we have commissioned a new line of carbon black taking the total capacity to 265,000 metric ton peranom. 4:54 4 minutes, 54 seconds All remaining capeex is progressing as per schedule. 5:00 5 minutes With this, I now move on to operational highlights. 5:04 5 minutes, 4 seconds For the quarter, our volume stood at 80,620 metric ton, a growth of 6% yearonear. For 9 months, volumes stood 5:14 5 minutes, 14 seconds at 231,536 metric tons, a minor degrowth of 1% yearonear. 5:22 5 minutes, 22 seconds Our standalone revenue for the quarter stood at rupees 2,682 crores, registering a growth of 4% yearonear. 5:30 5 minutes, 30 seconds This includes realized loss of forex pertaining to the sales of 47 crores. 5:38 5 minutes, 38 seconds For 9 months, the standalone revenue stood at 7,762 crores registering flat on year-on-year 5:46 5 minutes, 46 seconds basis. This includes a realized loss on foreign exchange pertaining to sales of 117 crores. 5:54 5 minutes, 54 seconds The standalone IITA for the quarter was at 605 crores, a margin of 22.5%. 6:02 6 minutes, 2 seconds For 9 months, the standalone IITA was at 1,760 crores, registering a degrowth of 6:08 6 minutes, 8 seconds 11% yearon year. However, the margins for H1 stood at 22.7%. 6:17 6 minutes, 17 seconds Profit after tax for the quarter was recorded at 375 crores while for 9 months we have recorded a pat of 927 crores. 6:26 6 minutes, 26 seconds Our cape expense for the 9 months of this financial year was approximately 2,200 crores. 6:33 6 minutes, 33 seconds As on 31st December 25 the gross debt and cash and cash equivalence were rupes 6:39 6 minutes, 39 seconds 3,649 crores and 3,12 crores respectively. Accordingly, we have a net debt of about 637 crores. 6:50 6 minutes, 50 seconds The board of directors has declared a third interim dividend of rupees per four per equity share in addition to the eight already paid in the previous two 6:58 6 minutes, 58 seconds quarters. With this, I now conclude my opening remarks and leave the floor open to Q&A. 7:08 7 minutes, 8 seconds Thank you very much, sir. We will now begin with the question and answer session. Anyone who wishes to ask a 7:15 7 minutes, 15 seconds question may press star and one on their touchstone telephone. 7:19 7 minutes, 19 seconds If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. 7:30 7 minutes, 30 seconds Ladies and gentlemen, we will wait for a moment while the question queue assembles. 7:44 7 minutes, 44 seconds The first question comes from the line of mummandala with Anand Rati. Please go ahead. 7:51 7 minutes, 51 seconds Yeah. Uh thank you sir for the opportunity. Uh so firstly on the uh we've seen uh Europe market turning 7:57 7 minutes, 57 seconds positive this quarter. Uh it's seen good growth uh this uh this quarter and I think some of the market like Germany uh 8:05 8 minutes, 5 seconds seems to have done well. I just want to understand uh you you mentioned about macro challenges but still we've seen a very good growth in the Europe uh what 8:14 8 minutes, 14 seconds could be factors that led to the rebound sir. 8:23 8 minutes, 23 seconds So I think uh overall uh they're anticipating the season to begin from this year. So that could have been the course and as I mentioned in my earlier 8:32 8 minutes, 32 seconds uh comments during the last quarter that lot of the restocking had leveled out. 8:38 8 minutes, 38 seconds So it could be due to that. 8:43 8 minutes, 43 seconds So uh going ahead sir I mean uh concerning macro challenges uh uh uh should Europe be affected kind of demand sir? 8:56 8 minutes, 56 seconds Yeah, it's too early to make a call on the long term. Yes sir. 9:01 9 minutes, 1 second Got it sir. uh uh see uh on America volume sir uh how much would be now say US sir um uh and has the volume started 9:10 9 minutes, 10 seconds there and um uh any impact of a uh tariff uh uh on the margins sir 9:20 9 minutes, 20 seconds overall America's is being uh there in the investor presentation the exact US sales is down as compared to previous uh 9:28 9 minutes, 28 seconds year but the exact numbers are not handy And any impact of tariffs in our margin number sir? 9:38 9 minutes, 38 seconds Yeah, obviously because uh uh we have shared with distributors but uh the large portion is being born by them. 9:48 9 minutes, 48 seconds Got it sir. Uh uh uh sir on the capic side uh uh this year already have done 2200 K uh which was the guidance last 9:57 9 minutes, 57 seconds year uh for the year. Can you update or what is the check for the full year now? 10:01 10 minutes, 1 second Uh and also any uh expectations for next year? 10:08 10 minutes, 8 seconds So maybe about 3 400 crores more in the current financial year and the balance would be in the next year. 10:18 10 minutes, 18 seconds Got it sir. Uh and sir uh on the commodity side sir um how do you see the trend there and uh if you can share the 10:27 10 minutes, 27 seconds euro in a dep in uh rate for the Q3 and how do you see the edges ahead? 10:34 10 minutes, 34 seconds So the euro rate for Q3 was at approximately 97 rupees. 10:44 10 minutes, 44 seconds And how do you see it? Should marginally improve from here. 10:56 10 minutes, 56 seconds Got it. And on the commercial side, how do you see the trend ahead? 11:03 11 minutes, 3 seconds So oil is going up moving and uh natural number is also moving up but it is too early to say what will be the impact. 11:12 11 minutes, 12 seconds Got it sir. Uh thank you so much for the opportunity. 11:16 11 minutes, 16 seconds Thank you. The next question comes from the line of sedartha with please go ahead. 11:24 11 minutes, 24 seconds Yeah thanks for the opportunity. Uh sir my first question is uh again on this zero INR rate I mean we had close to 91 11:35 11 minutes, 35 seconds uh last year and it has gone up to 97 now uh so can you talk about how the European realizations have been because 11:43 11 minutes, 43 seconds uh it's a significant improvement on the hedge dates but we have not seen much change in our ASPs or uh margin so some 11:53 11 minutes, 53 seconds thoughts there and current rate is significantly higher So uh uh are there significant hedges which which leads to 12:01 12 minutes, 1 second a lower rate for you for next year or why are you sort of indicating a only modest increase for next year? 12:08 12 minutes, 8 seconds So firstly the Europe share has gone down. So that has had an impact also as we [clears throat] maintain that we 12:15 12 minutes, 15 seconds always have a forward booking uh forward hedge. So that is uh also playing out and uh for next year also the same uh hedge would be continuing. 12:27 12 minutes, 27 seconds Okay. But uh in terms of European realizations have they remained stable or has there been any change in that also? 12:44 12 minutes, 44 seconds Hello. 12:45 12 minutes, 45 seconds Yeah, realizations are same. There has not been a significant uh movement on it. 12:50 12 minutes, 50 seconds But having said Sedat having said that the last quarter's realizations were around 91 92. This quarter is 97 and 12:58 12 minutes, 58 seconds still we are giving that it will improve from here. But because if you see in last 10 months the euro have run up from 13:06 13 minutes, 6 seconds 90 to 110 even after December for last uh 20 days 20 25 days it has run up by 13:14 13 minutes, 14 seconds five rupees. So because we are running forward positions so we are saying that the entire gain will not be captured in the rates. 13:23 13 minutes, 23 seconds Okay. Okay. Got it. And sir on the India business uh now uh I mean we have seen a 13:30 13 minutes, 30 seconds pretty strong growth consistently now for the last few years this quarter seems to be even stronger. So anything 13:38 13 minutes, 38 seconds here which is driving this I mean apart from the industry uh growth uh any customer additions or any market share gain if you can talk about and how do 13:46 13 minutes, 46 seconds you think this plays out for the next year? 13:50 13 minutes, 50 seconds As I mentioned in my opening comments, the uh positive impact by the government's uh uh role in reducing the 13:58 13 minutes, 58 seconds GST has driven uh the sentiments and that is what is driving in the entire auto sector and we are uh getting the benefits of that. 14:09 14 minutes, 9 seconds Understood. And uh also also the good also the good rains which were there in the season have led to better demand. 14:20 14 minutes, 20 seconds Okay. And uh does higher India share have a uh negative impact on the ASPs or 14:27 14 minutes, 27 seconds margins or uh there is no much change if you can just guide us. 14:34 14 minutes, 34 seconds Yes, it does uh have an uh slightly lower uh ASP. But if you see after all that also with the enhanced level of 14:40 14 minutes, 40 seconds India, the IITA levels are at par with what they've been in the past. So it is nullifying the overall effect. 14:49 14 minutes, 49 seconds Got it sir. So last question is on the CV 4A. We had talked about that the pilot with will start from this quarter. 14:58 14 minutes, 58 seconds So uh any thoughts now how should we think about the damper to the uh next year what percentage of our volumes can come from this segment. 15:08 15 minutes, 8 seconds So as we have mentioned all in my opening comments um the [clears throat] um all the projects are going as per 15:15 15 minutes, 15 seconds schedule. So the CV u will also come up in this quarter. You should uh we'll make the announcements as once we are 15:23 15 minutes, 23 seconds ready. So we not anticipating any delay on that. As far as the ramp up goes, uh we have a plan which we are working to. 15:30 15 minutes, 30 seconds It would be too early to sort of give any uh light on that at the moment. But we are quite confident of uh keeping our 15:37 15 minutes, 37 seconds long-term vision of 2030 and we are working towards that. Uh it'll be too early to comment on a quarterly basis 15:45 15 minutes, 45 seconds what will be the impact but we are quite confident of our long-term vision. 15:49 15 minutes, 49 seconds Understood sir. Thanks a lot. I'll come back in the queue. 15:55 15 minutes, 55 seconds Thank you. The next question comes from the line of Ragun with Nama. Please go ahead. 16:04 16 minutes, 4 seconds Uh thank you sir for the opportunity. Uh sir firstly with reference to the uh I'm sorry to interrupt sir. Uh 16:12 16 minutes, 12 seconds yes sir there's a lot of background disturbance and can you please use your handset? Uh is it better now? 16:21 16 minutes, 21 seconds Yeah, better. Yes, thank you. 16:23 16 minutes, 23 seconds Yeah, thank you sir. Uh uh thank you for the opportunity. Uh firstly sir, with reference to the Europe deal, can you 16:31 16 minutes, 31 seconds indicate what is the existing duty and how much reduction in duty can be anticipated because of the deal? This is 16:40 16 minutes, 40 seconds current duty is 4% and it is not very clear what will be the duty after this duty unless we see the imprint of the agreement. 16:51 16 minutes, 51 seconds Got it sir. And uh uh in the uh rest of the world regions which markets are mainly facing decline sir? 17:04 17 minutes, 4 seconds So I think it is um you know southern part of America would be there and Asia also a little bit. 17:17 17 minutes, 17 seconds Got it sir. And uh uh how much would be the freight cost as a percentage of revenue in Q3 and how do you see the outlook forward? 17:28 17 minutes, 28 seconds I think it's around 5% and we look at it to be stable at the moment. 17:34 17 minutes, 34 seconds Got it. So last quarter I think it was over 6%. So there has been an improvement here. Uh it is positively 17:41 17 minutes, 41 seconds support fluctuates fluctuates you know depending on which country has got more of the exports and where it is gone. But 17:49 17 minutes, 49 seconds this is the range is going to be in this range only. There's not going to be significant movement upward or downward. 17:56 17 minutes, 56 seconds Understood sir. And within our expenses, is there any cost uh which we are also factoring for the efforts towards the uh 18:06 18 minutes, 6 seconds uh CV and PV4A? Is there any product development or other cost which are part of our financials? 18:17 18 minutes, 17 seconds Nothing significant to note uh I mean to highlight over here. 18:22 18 minutes, 22 seconds Understood sir. And uh lastly sir on the keex uh will fi 27 keex also be in a 18:30 18 minutes, 30 seconds similar range to 26 around that 2,600 odd cr. 18:39 18 minutes, 39 seconds No we are in as we mentioned we are not seeing an overrun. So out of the total amount that we had committed from the budget about 25 2600 would be done in 18:49 18 minutes, 49 seconds this financial year and the balance would be done in that financial year. 18:54 18 minutes, 54 seconds Understood sir. Understood. Thank you sir. Thank you so much. Uh wishing all the best. 19:03 19 minutes, 3 seconds Thank you. The next question comes from the line of Abhishek Jen with Alpha Accurate Advisors. Please go ahead. 19:11 19 minutes, 11 seconds Thanks for opportunity sir. uh sir uh how how much is the current inventory in the US and European market and uh how 19:20 19 minutes, 20 seconds would be the outlook for the US and Europe in the fourth uh quarter. 19:26 19 minutes, 26 seconds So uh we are seeing that the channel stock is at par at where it should be and going forward it is difficult to 19:33 19 minutes, 33 seconds comment because of the volatility across the world with the geopolitical scenarios how it plays out. So it will be very difficult to make a comment on 19:40 19 minutes, 40 seconds how we see it. uh we hope uh uh that it uh plays out well but too early to comment on that. 19:50 19 minutes, 50 seconds So yes sir I have heard that uh in rent is quite low in the US and you have started to uh uh increase the numbers in 19:59 19 minutes, 59 seconds the US uh from this quarter. We have seen a uh strong growth in on a quarteron quarter on US but still it is 20:06 20 minutes, 6 seconds declined 30% uh y on y basis. So just wanted to understand what is your uh uh uh strategy for the US market. Uh are 20:16 20 minutes, 16 seconds you waiting for that uh this uh tariff uh issues uh to be resolved and then you can start to ramp up the volume or uh 20:24 20 minutes, 24 seconds you uh you you will continue to uh uh uh see the gain in the market in the US. 20:33 20 minutes, 33 seconds So as I mentioned in my opening comments because of our strong brand positioning and quality and some uh or rather big uh 20:42 20 minutes, 42 seconds some major chunk of the tariffs to be shared between us and our uh channel partners, we have been able to gain some of the momentum that we had lost in the 20:51 20 minutes, 51 seconds Q2 has come back in Q3 and uh too early to comment on what would be the uh change or how the tariffs would play out 21:00 21 minutes because you as of now there is nothing changed in that scenario. So once things change, we will have to reook at our strategy. At the moment we are trying to 21:08 21 minutes, 8 seconds just uh regain some of the lost momentum that we had in Q2. 21:12 21 minutes, 12 seconds So how much impact of on the margin on the US uh business uh because of this uh uh you are taking some heat on the uh uh 21:22 21 minutes, 22 seconds uh absorbing some sort of the tariff uh by yourself. So how much impact on the overall margin because of that? 21:31 21 minutes, 31 seconds I'm not um able to quantify it on a public call because these are business uh details. 21:39 21 minutes, 39 seconds Okay. And uh sir uh how much difference in the realization margin export versus domestic uh market. Now 21:51 21 minutes, 51 seconds as I mentioned in my comments earlier it is marginally lower. Again I'm not going to quantify that. Thank you. 21:58 21 minutes, 58 seconds Okay. Sir my last question on the carbon blade plant sir uh as you have increased your uh capacity to 2 lakh 65,000 tons. 22:07 22 minutes, 7 seconds So just wanted to understand how much would be used for the captive use and how much for the commercializations 22:14 22 minutes, 14 seconds and uh uh what what kind of the revenue and evita margin we can see on this business. 22:23 22 minutes, 23 seconds So this entire quantity is for the outside sale because whatever internal consumption is there that we were able to make from the earlier capacity and 22:32 22 minutes, 32 seconds the margin swag it will be the as per industry average. 22:37 22 minutes, 37 seconds Okay sir. Thank you. That's all for my sir. 22:41 22 minutes, 41 seconds Thank you ladies and gentlemen. In order to ensure that the management is able to address questions from all participants, please 22:49 22 minutes, 49 seconds limit your questions to two per participant. 22:54 22 minutes, 54 seconds The next question comes from the line of Yash Agaral with Nirmal Bank Securities. 22:59 22 minutes, 59 seconds Please go ahead. Uh sir just wanted to understand on the US tariff like how much has been passed on to the dealers 23:07 23 minutes, 7 seconds and how much we are bearing the impact of it. 23:12 23 minutes, 12 seconds Uh yes I'm sorry as I mentioned earlier these things I'm not able to quantify on a public call but we are sharing the 23:19 23 minutes, 19 seconds cost is being born between both of us that's all what I can okay that's it from 23:29 23 minutes, 29 seconds the next question comes from the line of Adita with old bridge mutual funds please go ahead 23:36 23 minutes, 36 seconds yeah thank you for the opportunity sir sir uh my first question would be on the India market so I just needed some uh 23:43 23 minutes, 43 seconds sense on how we should see this market, how we should see this volume split between uh agriculture and construction. 23:51 23 minutes, 51 seconds If you can give us some sense there, it's roughly about 60/40 between 23:59 23 minutes, 59 seconds industrial construction and agree very rough approximation. 24:04 24 minutes, 4 seconds Industrial construction industrial construction side would be about 60 and 40% agree. 24:09 24 minutes, 9 seconds Agree. Okay. Okay. That's super. And second question is sir on the uh US business of course we have done pretty well as compared to expectation in the 24:17 24 minutes, 17 seconds US business. So uh can you uh give of course we are witnessing lower volumes due to tariffs this year but if you can 24:25 24 minutes, 25 seconds give us some sense on the end consumer demand for uh these tires in US and how is the farm level activity as compared 24:33 24 minutes, 33 seconds to last year or a year back today and where are we there in that cycle? 24:39 24 minutes, 39 seconds So as we uh are all aware that US is a net importer so that would continue as 24:46 24 minutes, 46 seconds far as um for us it's uh you know it's of course a challenge to with the tariffs that we have been um put up with I mean we you know as a country we've 24:55 24 minutes, 55 seconds been put uh so we are trying to navigate through these scenarios it's difficult to comment on how the momentum would be 25:02 25 minutes, 2 seconds going forward because we don't have for certain what how long this will continue for whether it goes up goes down but 25:09 25 minutes, 9 seconds whatever is u enforced on uh the country uh and being law abiding citizens we will make try and make the best of that scenario. 25:19 25 minutes, 19 seconds Okay. Okay. No uh I I mean uh I I I wanted to I wanted to like get some sense like how's the uh farmer level 25:28 25 minutes, 28 seconds activity in terms of crops uh is the output down or is the end level activity down or significantly down over last 25:36 25 minutes, 36 seconds year which is impacting the end consumer demand. Is that also a case a significant case uh going on there this year? 25:45 25 minutes, 45 seconds No, not that we are aware of. It seems to be as per normal. 25:51 25 minutes, 51 seconds Okay sir. Okay. Thank you. Thank you so much. 25:57 25 minutes, 57 seconds Thank you. The next question comes from the line of Chad with Keynote Capitals. Please go ahead. 26:04 26 minutes, 4 seconds Yeah, thank you for the opportunity. Uh so my first question is related to the uh carbon black sales. What percentage of our revenue came from carbon black this quarter? 26:15 26 minutes, 15 seconds It is less than 10%. 26:18 26 minutes, 18 seconds Secondly, could you update uh how has been the utilization of the advanced carbon black uh m uh assets and what kind of volumes are coming from there. 26:32 26 minutes, 32 seconds It's still not very significant but yes we are able to get the sample approvals from many places and in the coming quarters it should improve. 26:44 26 minutes, 44 seconds Got it. Uh so my second question is uh related to the uh related to the Indian market itself. 26:53 26 minutes, 53 seconds uh that uh now in Indian market the could you just highlight what is the uh 27:00 27 minutes right to win for any new company which is getting into commercial vehicle and passenger vehicle as a segment and uh 27:08 27 minutes, 8 seconds what uh and what is the reason for Bal Krishna would be that we would be able 27:15 27 minutes, 15 seconds to significantly gain the initial 2 to 5%age of the passenger and commercial vehicle market as as in My understanding 27:23 27 minutes, 23 seconds it is a competitive industry uh where even uh low price players are not able to penetrate into market the way the 27:31 27 minutes, 31 seconds branded larger players have. So just wanted to understand your point of view on this. 27:39 27 minutes, 39 seconds Yeah chag we have spoken about it in the past. I don't know whether you were on that call or not but uh we hope to deliver a better value proposition to 27:47 27 minutes, 47 seconds the market to the root of the product channel brand end user uh value. So all 27:55 27 minutes, 55 seconds these put together I think we should be able to deliver a better value proposition than what the market is experiencing currently. 28:05 28 minutes, 5 seconds Got it. Got it. Uh so just last question uh if I am able to bifurcate the OT industry into three part agriculture, 28:13 28 minutes, 13 seconds mining, construction and industrial uh just wanted to understand is Bal Krishna present into the industrial tires as a segment. 28:22 28 minutes, 22 seconds Yes. 28:24 28 minutes, 24 seconds Got it. Got it. Uh uh that is it from my side. Thank you sir. 28:32 28 minutes, 32 seconds The next question comes from the line of PMO AE with Incred Capital. Please go ahead. 28:40 28 minutes, 40 seconds Yeah. Hi. Uh thanks for taking the call. 28:43 28 minutes, 43 seconds Uh so two questions. one uh with regard to US market uh who is with the duties and all uh who are the competitors who 28:52 28 minutes, 52 seconds are gaining at your cost uh and you feel uh once as and when the duty is normalized you should still have a right 28:59 28 minutes, 59 seconds to regain it back which countries or which manufacturers how to see it so as a as per competitive activity we 29:08 29 minutes, 8 seconds uh generally don't comment and we'll refrain from doing so regarding BKT's uh policy we believe that we are building the foundations and keeping everything 29:17 29 minutes, 17 seconds intact to when the scenario changes we will be ready to regain the momentum that was there and actually uh if you 29:25 29 minutes, 25 seconds see our previous u comments 29:27 29 minutes, 27 seconds [clears throat] 29:27 29 minutes, 27 seconds commentary we have always mentioned that uh North America is a driver of uh growth for us. So we are keeping everything ready to come back to that 29:37 29 minutes, 37 seconds market when it when things improve there. 29:40 29 minutes, 40 seconds And uh second question is with regards to the uh new projects when we visited last time uh similar time to the plant 29:48 29 minutes, 48 seconds you had some conveyor type of a tires which you are planning as a new project and also speciality carbon any update in terms of plant acceptance uh and orders on the same. 30:01 30 minutes, 1 second So as so regarding the carbon black um as the jaji mentioned that it is a work in 30:10 30 minutes, 10 seconds progress and uh as we had mentioned the ramp up would take time because of acceptance but uh every day we are getting your acceptance so in the coming 30:18 30 minutes, 18 seconds quarters that should work regarding the conveyor that you saw were actually what we call tracks rubber tracks so that is what uh goes there rubber tracks is a 30:27 30 minutes, 27 seconds work in progress again and as we are you know moving ahead said u we are uh trying I mean our product is under 30:34 30 minutes, 34 seconds validation at OE and that is expected in the coming quarters so that should then also ramp up 30:41 30 minutes, 41 seconds thanks uh Mr. promote. Does that answer your questions? 30:51 30 minutes, 51 seconds Yeah, thank you. Okay, thank you. 30:55 30 minutes, 55 seconds As there are no further questions from the participants, I now hand the conference over to the management for closing comments. 31:06 31 minutes, 6 seconds We thank uh everyone for taking the time out and uh coming to hear us and looking forward to seeing you in the next quarter. Thank you. Have a safe trip. 31:17 31 minutes, 17 seconds Thank you on behalf of Bal Krishna Industries Limited. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.