Banswara Syntex Limited — Q3 FY26

Banswara Syntex Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=lJiBWNoTiSY Published: 3 months ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to Q3 and 9 month FI26 earnings conference call hosted by Venuela Intech 0:10 10 seconds Limited. As a reminder, all participant lines will be in a listenon mode and there will be an opportunity for you to ask questions after the presentation 0:19 19 seconds concludes. Should you need assistant during the conference call, please signal an operator by pressing star then 0:25 25 seconds zero on attachment phone. Please note that this conference is being recorded. 0:31 31 seconds I would now hand the conference over to Mr. Renda Kumar Toshnal, vice chairman from Benasa Cintech Limited. Thank you and over to you sir. 0:41 41 seconds Thank you Muskan. 0:43 43 seconds Hi good afternoon everyone and I welcome you all to our quarter 3 and 9 month FY26 earnings conference call. 0:54 54 seconds Along with me we have on the call our CFO Ms. Kavita Gandhi and SGAA our investor relations advisors. 1:05 1 minute, 5 seconds I hope all of you have been able to go through the investor presentation uploaded on the exchange and on our company website. 1:13 1 minute, 13 seconds Now before I move on to our financial performance just briefly let me update you on some of the key developments in the industry. 1:24 1 minute, 24 seconds As you all are probably well aware from a global standpoint the environment for Indian textile and 1:31 1 minute, 31 seconds apparel exports has turned distinctly more favorable. 1:37 1 minute, 37 seconds Both the United States and the European Union which remain the most largest and important markets for us in export have 1:46 1 minute, 46 seconds witnessed renewed confidence in India and following the recent FDA agreement with EU as well as the tariff reduction 1:56 1 minute, 56 seconds for the US market access has improved across key textile and apparel categories. 2:03 2 minutes, 3 seconds These small tariff advantages over our neighboring countries can create a meaningful opportunity for us Indian 2:13 2 minutes, 13 seconds manufacturers to expand our presence globally in these high value markets. 2:21 2 minutes, 21 seconds We also see that there are political challenges in Bangladesh and cost pressures rising in Vietnam 2:30 2 minutes, 30 seconds which will make India a good sourcing destination for the world. 2:35 2 minutes, 35 seconds This shift is being reinforced by improving our trade access across the US, UK and EU. 2:44 2 minutes, 44 seconds Our weaker rupee helps our export competitiveness. 2:49 2 minutes, 49 seconds and a stronger policy support in the union budget. 2:54 2 minutes, 54 seconds Altogether, these factors give us a strong tailwind for Indian exports, 3:01 3 minutes, 1 second positioning the textile industry to capture incremental share. 3:07 3 minutes, 7 seconds I believe that the world is now [clears throat] looking for India as a destination for quality textiles in a long-term way. 3:17 3 minutes, 17 seconds We hope this will improve the capacity utilization and build a more durable export pipeline in the coming quarters. 3:26 3 minutes, 26 seconds Having said that, the industry-wide uncertainties and demand pressures had continued in quarter 3 which resulted in 3:35 3 minutes, 35 seconds a relatively choppy operating environment. Despite these challenges, we were able to deliver a stable 3:42 3 minutes, 42 seconds performance by our focus on value added products and improving our overall product mix which helped support our 3:50 3 minutes, 50 seconds margins and sustain the growth. Now let me take you through the financial performance for the quarter and the nine months of the fiscal. 3:59 3 minutes, 59 seconds Our total income stood at 343.3 crores in quarter 3 FY26. 4:07 4 minutes, 7 seconds Our focus towards value added offer offerings and a better cost management has helped us to consistently grow our gross margins keeping them strong. 4:18 4 minutes, 18 seconds We remained above 50% during both the 9 months and the recent quarter was a high in our operating margins. 4:29 4 minutes, 29 seconds EIA for the quarter stood at 42 crores marking a 25% quarteronquarter increase. 4:38 4 minutes, 38 seconds The profit before depreciation and tax came in at 31.3 crores for quarter 3 FY26 4:46 4 minutes, 46 seconds and we reported a profit before tax of 17.9 crores and a profit after tax of 4:54 4 minutes, 54 seconds 13.2 2 crores in quarter 3 FY26 which is [music] a quarteronquarter increase of 89% 5:01 5 minutes, 1 second over the last quarter for 9 months of FI26 our total income 5:09 5 minutes, 9 seconds stood at 1,000 crores reflecting a 4% increase compared to the same period last year our EIDA stood at rupees 97.6 5:19 5 minutes, 19 seconds 6 crores reflecting a 14% year-on-year increase and the profit before tax for 9 5:27 5 minutes, 27 seconds months FY26 was rupees 25.5 crores while PAT stood at rupees 18.8 8 crores marking a 16 growth of 16% year on year. 5:41 5 minutes, 41 seconds So in spite of a bad quarter 1, our quarter two and quarter 3 have helped us to recover the entire year's growth and 5:49 5 minutes, 49 seconds we look forward to a quarter four which will also be equally good. 5:55 5 minutes, 55 seconds The performance during the period reflects consistent execution and better capacity utilization across 6:03 6 minutes, 3 seconds businesses with a continued focus on value added growth over commodity volumes. 6:10 6 minutes, 10 seconds Despite a challenging operating environment, our effort our efforts towards 6:18 6 minutes, 18 seconds better utilization of our resources for value added products and our long-standing client relationships helped us to sustain a stable performance during this quarter. 6:29 6 minutes, 29 seconds I would say a good performance rather than even stable. The net debt as on 31st December 2025 stood at rupes 4595.1 6:39 6 minutes, 39 seconds crores compared to 456.2 crores as on 31st March 2025. This is an increase of 6:47 6 minutes, 47 seconds around 39 crores during the period. This increase was primarily on account of ongoing capital expenditure and higher 6:55 6 minutes, 55 seconds working capital requirements to support our business growth and operational needs. 7:01 7 minutes, 1 second Despite the increases in costs and a challenging operating envir environment, we delivered good results in this quarter. 7:12 7 minutes, 12 seconds And now coming to the business divisions. 7:15 7 minutes, 15 seconds For the yarn division, our revenue for the yarn division was steady at rupees 114 crores in quarter 3 FY26. 7:24 7 minutes, 24 seconds On a 9-month basis, revenues were largely in line with the corresponding period last year [music] at 336 crores 7:32 7 minutes, 32 seconds in yan. The sales volume stood at 4 48 lakh kilogram for quarter 3 FY26 7:39 7 minutes, 39 seconds and 148 lakh kilog for 9 months FY26 and our capacity utilization was at 81% during this quarter. 7:50 7 minutes, 50 seconds Operationally, the AN business delivered a steady performance. It was supported by a higher contribution for value added products resulting in improved margins. 8:00 8 minutes A disciplined approach to pricing and selective order execution helped us to maintain our revenue quality and 8:08 8 minutes, 8 seconds earnings despite relatively subdued market conditions. 8:14 8 minutes, 14 seconds The fabric division reported a stable performance in quarter 3 FY26 revenue was at 150 crores and for 8:23 8 minutes, 23 seconds the 9 months FY26 revenue grew by 5% yearon year to 416 crores reflecting 8:31 8 minutes, 31 seconds steady traction across key regions and better product mix. 8:36 8 minutes, 36 seconds Our sales volume stood at 59 lakh meters in quarter 3 FY26 while for the nine months of FY26 it 8:44 8 minutes, 44 seconds stood at 168 lakh meters. The fabric business continues continues its shift towards premium fabrics with a higher 8:54 8 minutes, 54 seconds mix of wool blended and stretch products supporting revenue stability and margins despite ongoing global uncertainties. 9:03 9 minutes, 3 seconds Our flagship brands such as Simony, Federico and Felo 9:10 9 minutes, 10 seconds and our premium fabric collections further gain gain traction in the international markets. 9:18 9 minutes, 18 seconds Our regional performance remain diversified with improved traction in the US and Far East helping off offset softness in some markets. 9:29 9 minutes, 29 seconds The UK and the domestic operations remained broadly in line with expectations, growing consistently. 9:37 9 minutes, 37 seconds Continued portfolio refinement and focused customer engagement remain our key priorities during this period and ongoing. 9:48 9 minutes, 48 seconds In our government division in quarter 3 FY26, we grew by 4% on a year-on-year basis to 9:56 9 minutes, 56 seconds 73 crores. For the 9 months FY26, the division reported a 11% year-on-year 10:02 10 minutes, 2 seconds increase to rupees 229 crores and our capacity utilization stood at 65% during the quarter. 10:12 10 minutes, 12 seconds Despite these challenges, the division maintained stability through a good execution and an improved product mix. 10:22 10 minutes, 22 seconds Particularly on our jacket offerings, we were able to drive higher realization as 10:29 10 minutes, 29 seconds jackets and suits now accounted in this quarter for 14% of our volume and 26% of 10:36 10 minutes, 36 seconds our revenues compared to 7% of our volume and 16% of our revenues in quarter 2 of FY26. 10:45 10 minutes, 45 seconds This is a favorable shift and gives us higher realization. 10:50 10 minutes, 50 seconds The division continues to benefit from long-standing domestic and international interest and partnerships and is 10:59 10 minutes, 59 seconds providing good demand visibility across all markets both domestic and exports. 11:09 11 minutes, 9 seconds In conclusion, while the near-term market conditions remain challenging, the company is well positioned to 11:16 11 minutes, 16 seconds benefit from the improved global trade dynam dynamics and the favorable trend 11:22 11 minutes, 22 seconds of sourcing shifting towards India. Our continued focus on value added products and strengthening our customer 11:31 11 minutes, 31 seconds relationships as well as finding new customers across each of the business divisions gives us confidence that we 11:39 11 minutes, 39 seconds will be able to sustain this performance and grow it. We have adequate available capacity, a differentiated product 11:48 11 minutes, 48 seconds portfolio and can see improved demand visibility across key markets. We remain optimistic about driving profitable 11:56 11 minutes, 56 seconds growth going forward. Thank you all and with that we open the floor for questions. 12:07 12 minutes, 7 seconds Thank you very much. 12:10 12 minutes, 10 seconds We will now begin the question and answer session. Anyone who wishes to ask question may press star N1 on the 12:16 12 minutes, 16 seconds touchstone telephone. If you wish to remove yourself from question queue, you may press star and two. Participants are 12:25 12 minutes, 25 seconds requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question cube assembles 13:08 13 minutes, 8 seconds The first question is from the line of Ravi Sha from VRS Capital. Please go ahead. Uh, hi sir. Am I audible? 13:17 13 minutes, 17 seconds Yes, go ahead Ravi. 13:19 13 minutes, 19 seconds Yeah. Uh, just a couple of questions sir. First would be how much pricing power are you seeing in export markets given the improved trade agreements and 13:28 13 minutes, 28 seconds what percentage of total revenue now comes from exports and how do you see this mix now evolving over time. 13:34 13 minutes, 34 seconds Okay so uh let me answer the second question first. Um we are doing right 13:42 13 minutes, 42 seconds now almost about 50/50 between our export markets and our domestic markets. 13:50 13 minutes, 50 seconds um and that is about a ratio which we like to keep. So I think that is going to remain our strategy going forward. 13:57 13 minutes, 57 seconds There was a good demand even from the domestic markets in the last quarter but we chose to take more export orders and 14:06 14 minutes, 6 seconds going forward the demand as we see it is also going to be a lot more exportdriven. 14:11 14 minutes, 11 seconds But we will make a judicious choice between choosing between the export and uh domestic demand to try and keep a 14:19 14 minutes, 19 seconds balance between profitability the right kind of uh products that we would like 14:25 14 minutes, 25 seconds to do and uh uh you know the the balance so that we maintain about a 50/50. 14:33 14 minutes, 33 seconds Then if you look at the pricing uh you know leverage that we have this is 14:40 14 minutes, 40 seconds uh really a speaking uh pricing leverage lies in the fact that we are a vertical company and we have availability 14:49 14 minutes, 49 seconds right from the fiber to the garment of providing a package to the customer. 14:55 14 minutes, 55 seconds Now that we can do this effectively um and we have developed all of the necessary 15:03 15 minutes, 3 seconds products and uh speed [music] and expertise, we can provide value to the customer in a much better way than 15:11 15 minutes, 11 seconds simply a company that does not uh that just just does garments by buying fabric from outside. So our biggest and 15:19 15 minutes, 19 seconds inherent advantage which we need to leverage more and more to get our pricing advantage is our verticality uh 15:28 15 minutes, 28 seconds and we will do that effectively we believe going forward. Thank you. 15:34 15 minutes, 34 seconds Understood. So thank you for the detailed answer sir. I'll move to my next question on utilization levels. So currently government utilization current 15:42 15 minutes, 42 seconds still remain at 65%. Uh so what is currently the operational constraint that we are facing which limits this utilization that's number one and 15:51 15 minutes, 51 seconds secondly our jackets and suits are now a larger share of our government revenue. 15:56 15 minutes, 56 seconds So was this a seasonal impact or is this come some kind of structural improvement we are seeing right so uh speaking about the 16:05 16 minutes, 5 seconds utilization in the government business which you pointed out was at 65%. 16:10 16 minutes, 10 seconds Um this is uh also partly because we had shut down our capacities in Surat and that was the constraint that we were 16:18 16 minutes, 18 seconds not able to use all of the capacities as we moved out of the SEZ there and the machines have not been yet moved out of 16:27 16 minutes, 27 seconds the SCZ and started in a DTA as we are awaiting permission. That is why we did not have that capacity available to us. 16:36 16 minutes, 36 seconds uh that is going to become available in the next four or five months we believe and that will allow us to have 16:43 16 minutes, 43 seconds additional capacity available. So while we're saying it's a utilization problem it's also a structural issue on the permission that really did not allow us to use the garment capacity. 16:55 16 minutes, 55 seconds Um coming to the jackets part in the last quarter we saw an improvement in the jacket utilization which bought uh 17:03 17 minutes, 3 seconds the jacket revenue to 25% of the total government revenue. This could go up even further and this is uh expected to 17:12 17 minutes, 12 seconds go up further. We we are working on strategic relationships with the uh 17:19 17 minutes, 19 seconds retail customers both in domestic and exports to have our jacket lines more better utilized and build this 17:27 17 minutes, 27 seconds percentage of value added garment capacity of jacket [music] to 30 or 40%. 17:37 17 minutes, 37 seconds I hope I've answered. Yeah. Yeah. Very very clear understood. 17:41 17 minutes, 41 seconds So my last question would be on Banswara. How do we differentiate our premium fabrics versus our peers and is 17:49 17 minutes, 49 seconds the vertical integration le time advantage translating into any measurable export market gain versus let's say a Bangladesh or a Vietnam? 18:01 18 minutes, 1 second Yeah. So definitely we are known to be a company which is more innovative among all customers globally and exports. 18:10 18 minutes, 10 seconds Anybody who comes to the country looking for good value added uh stretch fabrics 18:17 18 minutes, 17 seconds whether in wool blends or in poly viscos blends, polyester blends always comes to us for suitings with stretch and we are 18:26 18 minutes, 26 seconds able to then also offer them a package now in terms of a garment. So I think that that is a distinct advantage in 18:33 18 minutes, 33 seconds terms of the delivery as uh our FOB delivery is equal to um uh the lead time 18:42 18 minutes, 42 seconds and the lead time of shipping is discounted from our overall uh delivery that we are being able to give. So as we 18:51 18 minutes, 51 seconds see an increased capacity of garmenting in India which is happening and which continues to increase in a very good 18:59 18 minutes, 59 seconds way, we will find that the lead time for garments going out of India with fabric coming from India will only be better. 19:08 19 minutes, 8 seconds And here we are well positioned to compete with a Bangladesh or China or anyone else who do not do the entire package within their country. 19:21 19 minutes, 21 seconds Understood. So very clear. Thank you sir for the detailed answers and all the best. Thank you. 19:28 19 minutes, 28 seconds Thank you. A reminder to all the participants. You may press star and one to ask question. 19:36 19 minutes, 36 seconds The next question is from the line of Runit Kapoor from Industry Investments. Please go ahead. 19:43 19 minutes, 43 seconds Yeah. Uh yeah. Hi, thanks for the opportunity. Uh first of all uh congratulations on improving your EIDA 19:50 19 minutes, 50 seconds margins despite a challenging quarter uh challenging industry environment. So I want to know first of all like uh I 19:58 19 minutes, 58 seconds think uh Mexico has uh increase the tariffs on Indian textiles and I think has around 2025 crores exposure to 20:07 20 minutes, 7 seconds Mexico. So how do you see it going down to zero or to what extent will it reduce and will you be able to compensate it from any other countries? 20:16 20 minutes, 16 seconds Yeah. Uh thanks for the question Runit. 20:19 20 minutes, 19 seconds Uh firstly for Mexico the um tariff increase is not for poly viscos. It is 20:27 20 minutes, 27 seconds only for polyester 100% polyester goods and most of the goods that we have been sending to Mexico are actually poly 20:35 20 minutes, 35 seconds viscos or polywool and there that uh particular uh tariff increase does not apply. So we don't see any significant change there. 20:45 20 minutes, 45 seconds uh in fact it there may be even increases that happen in Mexico and as as more garments are going from Mexico even into the US. 20:57 20 minutes, 57 seconds Oh okay and uh secondly like uh from an industry perspective like even though I think India has got the 18% tariff rate 21:05 21 minutes, 5 seconds from US and it's the lowest in South Asia. 21:08 21 minutes, 8 seconds So but uh I think few countries have a lower tariff like which are governmenting hubs like Egypt and Usbakistan have 10% and Jordan has got a 21:16 21 minutes, 16 seconds 15%. So on a per package basis how did India compare to them like after accounting for all this? 21:24 21 minutes, 24 seconds So you got to look at the larger picture the volume that Egypt or Jordan or any of these lower tariff areas or even zero 21:32 21 minutes, 32 seconds tariff areas in some cases can deliver is very small for the US market. and the major volume does come out of Vietnam 21:41 21 minutes, 41 seconds and China and Bangladesh and we will be able to very effectively compete against that. uh there is a long-term vision for 21:50 21 minutes, 50 seconds India that the government holds and all of the industry insiders also believe now very strongly in and you will see 21:58 21 minutes, 58 seconds that there is a whole ecosystem developing within India that will allow us to become a much stronger player in 22:06 22 minutes, 6 seconds the apparel business for exports but apart from that we have a domestic market as well which is so huge that we 22:14 22 minutes, 14 seconds see that this is an opportunity which doesn't come in many uh decades but the next uh 10 20 years in India 22:24 22 minutes, 24 seconds particularly for man-made textiles should be very very good but on a per cost basis like would it be 22:32 22 minutes, 32 seconds cheaper in India compared to Egypt or likean a lot of capacities have come there like if you're going to make the garment 22:40 22 minutes, 40 seconds there and export it at a reduced tariff it cannot be cheaper from India no but you will still be able to export port 22:47 22 minutes, 47 seconds your fabric from here tobakistan or Egypt or Jordan and the fabric can go out from there. 22:54 22 minutes, 54 seconds Well, accounting for labor and other power expenses I'm saying like on a package basis like no no at the end of the day we are 23:02 23 minutes, 2 seconds talking about the landed duty paid price for the customer into the US. If you're talking about that LDP price into the 23:11 23 minutes, 11 seconds US, the tariff plays a significant part and all of the labor savings and other thing don't really count for much in apparel compared to the tariff. 23:23 23 minutes, 23 seconds Okay. uh and uh so now uh with the three uh two new FDAs with the EU and the UK 23:30 23 minutes, 30 seconds and the talks are on the Canadian FDA and even the reduced tariff with US I think 23:37 23 minutes, 37 seconds Banssw is a very sweet spot uh being the one of the few integrated uh synthetic mills in uh synthetics. So how's a 23:46 23 minutes, 46 seconds company planning to leverage it? Are we willing to go the extra mile by doing a massive green field or an acquisition in governmenting? because currently I feel 23:55 23 minutes, 55 seconds like we don't have many compliant export oriented firms for governmenting and like there's a shortage of capacity considering the extensive demand which 24:03 24 minutes, 3 seconds is going to come over the next few years right so first of all like we said we've only utilized 65% of our capacity in 24:10 24 minutes, 10 seconds government we still have another 35% that will go operational within 3 4 months automatically as soon as we get 24:17 24 minutes, 17 seconds our surz set transferred to DDA now this is already available to us there is addition capacity available also uh 24:26 24 minutes, 26 seconds which we are thinking about using in already compliant mills who are willing to collaborate with us uh government 24:33 24 minutes, 33 seconds units where we can get goods done uh which are compliant and we can use those capacities additionally even without 24:41 24 minutes, 41 seconds having a green field. We will think about a green field and have put in an application for a PIL. uh but we will 24:49 24 minutes, 49 seconds see whether we want to use it or not depending on the policy of the government towards the PIL and if it makes sense. 24:58 24 minutes, 58 seconds No you you are speaking about like outsourcing the garmenting in terms but the margins would be quite low in terms of that model like 25:07 25 minutes, 7 seconds not really there is a lot of uh potential if you're using your own fabric your own design to outsource even 25:15 25 minutes, 15 seconds at a lower cost than what you're able to do inhouse. 25:20 25 minutes, 20 seconds So as of now there's no planning for a green field or you'll wait and like take a call by the end of the year. There is no planning for a new green field 25:28 25 minutes, 28 seconds government. No, we are not making an additional capex there. What we are going to be doing is leveraging our own 25:37 25 minutes, 37 seconds uh available capacities as we have always been saying to get to a turnover of 1,800 crores and reach a government 25:45 25 minutes, 45 seconds turnover of 450 to 500 crores without increasing capacity is possible for us. 25:53 25 minutes, 53 seconds And post that would you look at a green field or like post that? Yes, for sure. Okay. 25:59 25 minutes, 59 seconds Okay. And uh la last question is that I think uh US is has come up with a revised trade agreement with Bangladesh 26:07 26 minutes, 7 seconds and they offering 0% tariff on uh the fiber is imported from US. So I think is this only particularly for Bangladesh or 26:15 26 minutes, 15 seconds like there was an interim agreement like where all countries could avail of the discount if uh it is imported from us 26:23 26 minutes, 23 seconds right the fiber and the cotton this is early days for this new announcement and we are still to understand it better. uh however the the 26:33 26 minutes, 33 seconds one understanding is clear that if the Bangladesh is to import the US cotton and spin it first their spinning 26:41 26 minutes, 41 seconds industry needs to be viable and be able to convert that into a yarn at the right price for the industry and then they 26:50 26 minutes, 50 seconds have to be able to make the garment out of it. You know may finish the fabric, dye the fabric, make the garment out of it and then give it back. only to that 26:58 26 minutes, 58 seconds extent will they be protected and it will impact [music] probably only cotton and not the man-made parts where we are really 27:06 27 minutes, 6 seconds prevalent in Basara. So I don't see it affecting Bansswara in a major way. 27:11 27 minutes, 11 seconds Maybe some of the cotton mills will be worried about this. Okay. Thank you. That's it from my side. 27:19 27 minutes, 19 seconds Yeah. 27:22 27 minutes, 22 seconds Thank you. A reminder to all the participants you may press star and one to ask question. 27:30 27 minutes, 30 seconds The next question is from the line of Rahul Rajar from research analytics. Please go ahead. 27:37 27 minutes, 37 seconds Um my question has been asked uh by the sir. So no more question for my session. Okay Rahul. Thank you. 27:45 27 minutes, 45 seconds Thank you. 27:47 27 minutes, 47 seconds A reminder to all the participants you may press star in to ask question. 27:55 27 minutes, 55 seconds The next question is from the line of Dan Singh from DS Broking. Please go ahead. 28:01 28 minutes, 1 second Uh hi. Uh so I have a question that uh what portion of fabric revenue now comes from wool blended stretch and premium 28:09 28 minutes, 9 seconds category and what is the three-year target mix you're looking for? 28:14 28 minutes, 14 seconds Right. Um thanks for that question. So we are really focusing on this product mix um issue in a big way. Uh right now 28:24 28 minutes, 24 seconds I would say that uh our woolen blended fabrics and wool based fabrics are about 28:30 28 minutes, 30 seconds uh 400,000 mters in different blends out of our total 23 to 24 lakh meters that 28:38 28 minutes, 38 seconds we do per month and our stretch fabrics are between 12 to 14 lakh mters per 28:46 28 minutes, 46 seconds month. So the value added part is around 14 to 15 lakh m out of 22 23 lakh m that 28:53 28 minutes, 53 seconds we do. Um and we hope that we can bring this up from the 14 lakh m to almost 18 29:01 29 minutes, 1 second 20 lakh m value added and increase the total sales to 26 27 lakh m. This is our 29:09 29 minutes, 9 seconds endeavor in the next uh you know five six months. 29:14 29 minutes, 14 seconds Okay. And uh regarding the uh revenue growth which remains modest despite premium mix improvement is demand a 29:23 29 minutes, 23 seconds bottleneck or pricing discipline limiting growth. 29:27 29 minutes, 27 seconds Yeah. So we have to reach out to new customers with special products that fit 29:34 29 minutes, 34 seconds their price point while not losing our premium customers which are able to give us better pricing. So these are new set 29:43 29 minutes, 43 seconds of customers that we have to reach out to which we haven't been able to so far. 29:47 29 minutes, 47 seconds But now we find we are very competitive in many different areas as a vertical offering to be able to take on that 29:55 29 minutes, 55 seconds business. Um you know getting the right margin for the fabric, getting the right margin for the garment, utilizing our 30:04 30 minutes, 4 seconds own yarns in a better way. Um and this is beginning to happen and will continue to be happening. We do not want to go 30:12 30 minutes, 12 seconds for the bottom end of the market and try and get more of the tender businesses or the real businesses in uh which have no 30:20 30 minutes, 20 seconds margin at all. We have actually gone away from such businesses. In spite of that, we have been able to continue to 30:26 30 minutes, 26 seconds grow our value added and we now find that there is ample demand at different 30:34 30 minutes, 34 seconds price points with new customers both in India and exports and we will be tapping that to continue with a 15 to 20% growth 30:43 30 minutes, 43 seconds in the fabric and at least 15 20% growth even in the garment business. 30:49 30 minutes, 49 seconds Okay, thank you for the answer. Thank you. 30:58 30 minutes, 58 seconds Thank you. A reminder all the participants you may press star and one to ask question. 31:14 31 minutes, 14 seconds The next question is from the line of Shaki Prattab from Pratab Securities. Please go ahead. 31:21 31 minutes, 21 seconds Hello. Thanks for the question. Um, so two questions. Uh, how should we think about the revenue growth and margin 31:28 31 minutes, 28 seconds trajectory now going forward? So if you could just give up a FY26 exit and FY27. 31:35 31 minutes, 35 seconds That is first. 31:37 31 minutes, 37 seconds Okay. And the next question, the second is uh net debt has also increased to 495 crores and debt to 31:45 31 minutes, 45 seconds equity is now roughly.9x. So what's your comfortable leverage level and uh do we expect any lead referring uh and when will that resume? 31:56 31 minutes, 56 seconds Thank you. So um first let me talk about our revenue growth and EITA margin projections. 32:04 32 minutes, 4 seconds um based on this last quarter in which we got 12 1.5% EITA um we believe that we should be able to 32:13 32 minutes, 13 seconds maintain that and even improve it going forward in the next financial year. Um the growth that we're talking about is 32:22 32 minutes, 22 seconds 15 to 20% across the board. So we hope that even if this year we are able to end with about 1,300 crores to 1350 I 32:31 32 minutes, 31 seconds don't know something like that um we should be able to increase 15 to 20% on that in the next financial year. 32:43 32 minutes, 43 seconds Now given the total debt at 495 crores um it may increase a little bit more as 32:52 32 minutes, 52 seconds we roll out our total uh projects that we have put in which are all primarily 32:58 32 minutes, 58 seconds to modernize and improve our quality mix for getting products. 33:06 33 minutes, 6 seconds uh this will all finish by the end of next financial year and after that we should see that if the EITA margin as we 33:15 33 minutes, 15 seconds are projecting remains at that 12 1.5% and above we should be able to pay back 33:22 33 minutes, 22 seconds the debt from the next to next financial year. 33:26 33 minutes, 26 seconds Got it. So thank you so much for the detailed answer. You're welcome. 33:37 33 minutes, 37 seconds Thank you. A reminder to all the participants, you may press star and want to ask question. 33:58 33 minutes, 58 seconds The next question is from the line of Rahul Rajar from research analytics. Please go ahead. 34:04 34 minutes, 4 seconds Okay. So sir, my question is how much impact will India going to face because of this new tariff between US and 34:12 34 minutes, 12 seconds Bangladesh agreement and what about the impact on a readymate government? 34:20 34 minutes, 20 seconds Yeah. So like I said this Bangladesh thing is yet up in the air in terms of the fact that we don't know whether 34:29 34 minutes, 29 seconds Bangladesh will be able to take in the cotton from USA and convert it into a 34:34 34 minutes, 34 seconds garment um in a viable way or not. Uh number one number two it is not a big 34:42 34 minutes, 42 seconds impact for Bansswara. So I will not speak about the industry as a whole. uh the impact if any will be on cotton yarn 34:50 34 minutes, 50 seconds exporters to Bangladesh and cotton garment exporters from India to the US 34:58 34 minutes, 58 seconds both of which we are not okay that answer 35:10 35 minutes, 10 seconds thank you reminder to all the participants you may press and one to ask questions. 35:38 35 minutes, 38 seconds Participants may press star to ask question. 35:55 35 minutes, 55 seconds Is there no further question from the participants? I would now hand the conference over to Mr. Raind Kumar for closing comments. Over to you sir. 36:03 36 minutes, 3 seconds Thank you. So thank you everyone for listening to us in our uh FY 36:11 36 minutes, 11 seconds 26 9month uh earnings call. We appreciate your uh continued support of Bansswara and we look forward to a much 36:20 36 minutes, 20 seconds better future uh where we have been able to in in the last 49 years again 36:27 36 minutes, 27 seconds remodernize ourselves and prepare ourselves for the next 50-year journey in a very meaningful way. We do believe 36:35 36 minutes, 35 seconds that the time is now and the future lie ahead is one in which we will experience some of the best years that we have yet 36:43 36 minutes, 43 seconds to experience. So we thank you for your renewed confidence in us and look forward to meeting you all the next quarter. Thank you very much. 36:55 36 minutes, 55 seconds Thank you on behalf of Sent Limited. 36:58 36 minutes, 58 seconds That concludes this conference. Thank you for joining us and you may now disconnect airlines. Thank you