CARYSIL LIMITED — Q3 FY26

Carysil Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=L02QGmEOIVU Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to Charisle Limited Q3 and 9 months FI26 earnings conference call 0:09 9 seconds hosted by Go India Advisers LLP. This conference call may contain some forward-looking statements about the 0:16 16 seconds company which are based on the beliefs, opinions and expectations of the company as on the date of this call. These statements are not the guarantees of 0:25 25 seconds future performance and involve risks and uncertaintities that are difficult to predict. As a reminder, all participant 0:33 33 seconds lines will be in the listenonly mode and there will be an opportunity for you to ask questions after the presentation 0:40 40 seconds concludes. Should you need assistance during this conference call, please signal an operator by pressing star then 0:48 48 seconds zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Chi for his opening remarks. 0:57 57 seconds Thank you and over to you sir. Thank you. 1:04 1 minute, 4 seconds I think probably Jeff can be on mute so lot of background might come. Thank you. 1:13 1 minute, 13 seconds Uh good evening ladies and gentlemen. 1:16 1 minute, 16 seconds Thank you for joining us for the Carousel Limited quarter 3 and 9 monthly FI26 earnings conference call. I trust 1:24 1 minute, 24 seconds you have an opportunity to review our financial results and investor presentation both available on the company's website and on stock 1:31 1 minute, 31 seconds exchanges. Joining me on this call is Mr. Anan Sharma, executive director and group CFO and GIA are investor relation 1:38 1 minute, 38 seconds advisors, global and Indian economy. 1:43 1 minute, 43 seconds Under the leadership of our honorable prime minister Shri Narendra Modi, India has finally struck the free trade 1:50 1 minute, 50 seconds agreement with you, UK, Australia, UAE, Oman and mother of all trade deals what 1:57 1 minute, 57 seconds they say with EU. The development expected to provide strong momentum to businesses and open new horizons in the export market. 2:07 2 minutes, 7 seconds Finally, the good the news happened few days back. We're happy to announce a bilateral trade tariff between India and US agreed 2:16 2 minutes, 16 seconds for the tariffs at 18% from the place of existing 50%. 2:21 2 minutes, 21 seconds This is a significant development for the country and the potential to grow our export further and enhance our competitiveness in the US market. 2:30 2 minutes, 30 seconds The positive developments along with our strong product portfolio and operational excellence energizes us as a company and reinforces the confidence of the 2:37 2 minutes, 37 seconds resilience of CAS's global business. The IMF's latest reports indicate India is projected to contribute nearly 70% to 2:46 2 minutes, 46 seconds the global real GDP growth, second only to China. India GDP growth for 2025 is projected at 6.7% positioning it as the 2:55 2 minutes, 55 seconds fastest growing major economy. Building on the foundations, we continue to focus on the key pillars that have guided Kasu's growth over the past three 3:03 3 minutes, 3 seconds decades. Number one, well equipped manufacturing facilities have supported steady growth over the years. 3:10 3 minutes, 10 seconds Long-standing trustbased relation with customers, partners worldwide remain a key driver to our success. Focusing on quality, design, reliability to meet 3:18 3 minutes, 18 seconds global standards and deliver superior products. Both a strategic vision anchored in resilience innovation enabling us to adapt to global 3:27 3 minutes, 27 seconds challenges while creating sustainable value of all stakeholders. 3:31 3 minutes, 31 seconds As global markets evolve amid shifting trade dynamics and supply chain changes, the strengths help us to navigate 3:38 3 minutes, 38 seconds complexity with clarity. They also give us the confidence to continue building the carousel brand across key markets. 3:46 3 minutes, 46 seconds and to explore opportunities even amid challenges. Business performance and growth highlights. The third quarter of 3:53 3 minutes, 53 seconds FI26 was quite decent especially in the context of the prevailing global headwinds and tariff related challenges 4:00 4 minutes especially with the US. With the conclusion of the free trade agreement with major economies and more recently the positive news around the US trade 4:08 4 minutes, 8 seconds deal, we expect the overall business environment to improve. To navigate the earlier tariff impact, the company had 4:15 4 minutes, 15 seconds extended additional discount to our key US customers with the reduction in tariffs which is the immediate effect and the new under the new trade 4:23 4 minutes, 23 seconds agreement. We plan to roll back this incremental discounts with immediate effect. Further with expected signing of 4:31 4 minutes, 31 seconds the U trade deal, we foresee a significant growth opportunities in and around European markets. 4:39 4 minutes, 39 seconds Kitchen sink quartz granite sink business. Sales volume of the quartz granite kitchen sinks have been strong 4:47 4 minutes, 47 seconds and incremental investments in molds have been made to meet the demand in India and worldwide. During the Q3 FI26, 4:56 4 minutes, 56 seconds our sales increased by 27% as compared to Q3 FI25. 5:02 5 minutes, 2 seconds We expect an additional capacity which we had announced earlier to become operational by the quarter 1 April 2026. 5:13 5 minutes, 13 seconds This has been a bit delayed since we were waiting for the US news. Stainless steel business sales volume of the state 5:21 5 minutes, 21 seconds sings have increased by 23% in quarter 3 FY26 compared to quarter 325. 5:28 5 minutes, 28 seconds Capacity expansion is underway and there's increased capacity in stages to sync from 180,000 to 250,000 by April 2026. 5:38 5 minutes, 38 seconds Considering the demand from our global customers and OEM opportunities in India, the company had acquired land 5:46 5 minutes, 46 seconds adjacent to the factory and plan capital expenditure to enhance manufacturing in line and part of its diversified growth strategy. 5:56 5 minutes, 56 seconds built-in appliances. 5:59 5 minutes, 59 seconds We are strengthening our manufacturing capacity in appliances. In phase one, we commence assembly come manufacturing of 6:06 6 minutes, 6 seconds the kitchen hoods chimneys with an activated capacity of 50,000 units. In second phase, we are starting assembling 6:16 6 minutes, 16 seconds extended line of manufacturing to hobs, ovens, food waste disposers, etc. scaling the overall capacity to 6:25 6 minutes, 25 seconds 100,000 units peranom expansion. This will position us to scale operations in line with the demand. We are receiving 6:32 6 minutes, 32 seconds good interest and inquiries from the established OEM opportunities in appliances which is going to be 6:40 6 minutes, 40 seconds significant due to the BI certification putting investing state-of-the-art technology for the built-in appliances 6:49 6 minutes, 49 seconds including glass cutting forming and coating of the glasses. 6:55 6 minutes, 55 seconds We from the faucets we are commence assembly and manufacturing of kitchen faucets in the initial 7:03 7 minutes, 3 seconds capacity of 50,000 faucets peranom and we are in the process of expanding 100,000 pieces peranom 7:11 7 minutes, 11 seconds guided by vision to enable that we want that every kitchen faucet of carousels 7:19 7 minutes, 19 seconds should be portable for drinking by integrating an advanced filtration techn technology with all our with most of our 7:28 7 minutes, 28 seconds faucet offering. We will be manufacturing two types of faucets. 7:34 7 minutes, 34 seconds Stainless steel faucets and the brass prone faucets. 7:39 7 minutes, 39 seconds The stainless steel faucets will be completely lead free and which we matches the new standard for exports in 7:46 7 minutes, 46 seconds the United States and EU. We've been receiving several major inquiries from the large bathroom and kitchen brands 7:55 7 minutes, 55 seconds across the world and the orders have also started flowing in for the faucets 8:01 8 minutes, 1 second for export market. We see a significant volume in terms of faucet because everything needs a faucet. 8:11 8 minutes, 11 seconds Use of the PVing technology further will enhance the aesthetic durability and validation of the existing. Due to the 8:19 8 minutes, 19 seconds ongoing demand of the PVD faucets, we company decided to order another machine of the PVD for faucets. 8:29 8 minutes, 29 seconds The necessary certification are in the process for the UK, European and the US market. 8:36 8 minutes, 36 seconds We will optimize our sales channels while increasing our overall value addition. 8:41 8 minutes, 41 seconds Coming to export business, our export business with the key customers in United States, Europe and across the world. I mean substantially during the 8:48 8 minutes, 48 seconds quarter and is expected to further improve with the ongoing manufacturing capacity expansion and demand. UK market 8:58 8 minutes, 58 seconds remained relatively soft due to ongoing economic challenges and the fundamentals of business still remain very strong. to 9:06 9 minutes, 6 seconds send in our brand presence. We are launching carousel branded sinks and built-in appliances through experience centers which is coming up in Manchester 9:14 9 minutes, 14 seconds exclusive carousel showroom. New and emerging markets are becoming more important and meaningful to contributing to the growth especially the Middle 9:23 9 minutes, 23 seconds East. Follow the response of the first experience center. We opened a second experience center in Mascat. In January 9:30 9 minutes, 30 seconds 26, a third one is coming in Sharah Dubai main highway approximately 3 to 4,000 square ft showroom. 9:42 9 minutes, 42 seconds Um and we plan to open another one in March 2026. 9:47 9 minutes, 47 seconds We are spreading our sales network across Middle East and the Gulf, Qatar, Saudi Arabia, Bahrain etc. 9:56 9 minutes, 56 seconds while other targeting some key European markets like Romania, Morocco, Egypt and Bulgaria. 10:03 10 minutes, 3 seconds We are sening our presence in other markets is it Australia, New Zealand, Canada and South Africa with the 10:10 10 minutes, 10 seconds Carousel brand and adding pro bathroom products and the kitchen built-in appliances. 10:19 10 minutes, 19 seconds We had a very strong and a successful business model in UAE with our brand and company plans to replicate the same 10:27 10 minutes, 27 seconds model across the world with the Paris brand Indian business India continues to be an important growth pillar of the 10:36 10 minutes, 36 seconds company like we said in the last investor call uh domestic business registered growth of 30% in 10:44 10 minutes, 44 seconds quarter 3 as compared to quarter 3 FY25 OEM India business is progressing well 10:52 10 minutes, 52 seconds with the leading players such as Coler, Hay etc. sourcing now stainless steel sinks from our company and has further plans to add a lot of new products. 11:04 11 minutes, 4 seconds Capacity expansion in stainless steel fit us in a meet growing domestic and export demand. 11:12 11 minutes, 12 seconds strengthening online presence and upcoming experience center will deepen consumer engagement and enhance visibility. We are also strengthening 11:22 11 minutes, 22 seconds our ecom and our sales distribution significantly to further enhance our 11:28 11 minutes, 28 seconds presence in the Indian market online business. 11:39 11 minutes, 39 seconds We see a massive potential of the online business and part of our endeavor to have a story of 500 cr of India in the 11:47 11 minutes, 47 seconds next five years. It's important when we start focusing on the online business which is the fastest growing business. 11:53 11 minutes, 53 seconds We have strengthened our team. We recruited new people to expand our online presence. We're also launching the carousel bathroom brand to a D2C 12:02 12 minutes, 2 seconds model expanding experience centers cross India and build a scalable growth platform. 12:12 12 minutes, 12 seconds Carousel plans to host his first international carousel summit carousel 12:20 12 minutes, 20 seconds 2.0 0 at the Grand Hyatt Mumbai on the 4th April 2026 where we going to showcase the vision of 12:29 12 minutes, 29 seconds the new carousel 2.0 to our investors, stakeholders, channel partners and customers. 12:37 12 minutes, 37 seconds Our vision is to build India's largest integrated kitchen hub. 12:43 12 minutes, 43 seconds With that, I would like to hand over the call to Mr. Anand Sharma our executive director group CFO who will take you through the financial performance in more detail. Over to you Anand. 12:54 12 minutes, 54 seconds Thank you sir. Good evening everyone. 12:57 12 minutes, 57 seconds Let me take you through the company consolidated financial performance quarter three FY26 performance 13:05 13 minutes, 5 seconds consolidated total income stood at 225.2 cr for Q3 FY26 as compared to 207.4 4 cr 13:14 13 minutes, 14 seconds of Q3 FY25 growth of 8.6% a bida for quarter 3 FY26 stood at 43.7 13:23 13 minutes, 23 seconds cr as compared to 33.1 cr of Q3 FY25 growth of 31.9%. 13:31 13 minutes, 31 seconds Aida margin for quarter 3 FY26 stood at 19.4%. 13:37 13 minutes, 37 seconds Profit after tax and monetary interest stood at 21.3 cr in Q3 FY26 13:43 13 minutes, 43 seconds as against 12.5 cr of Q3 FY25 growth of 69.7%. 13:50 13 minutes, 50 seconds Sales volume for quart sink stood at 1991 123 units. Stainless steel sink 13:57 13 minutes, 57 seconds stood at 36,974 unit. kitchen appliances and others stood at 15,620 units in Q3 FY26. 14:08 14 minutes, 8 seconds Coming to 9 month FY26 performance consolidated total income stood at 698.7 14:15 14 minutes, 15 seconds cr for 9 month FY26 as compared to 618.9 cr in 9 month FY25 growth of 12.9%. 14:27 14 minutes, 27 seconds Aida of the company for 9 month FY26 stood at 139.5 cr as compared to 109.9 14:35 14 minutes, 35 seconds cr in 9 month FY25 growth of 26.9%. 14:42 14 minutes, 42 seconds EITA margin for 9 month FY26 2-20% as compared to 17.8% 8% in last year 9 14:50 14 minutes, 50 seconds month FY25 profit after tax and manuality interest stood at 71.6 cr in 9 month FY26 as 15:00 15 minutes compared to 45.5 cr in 9 month FY25 growth 57.3%. 15:09 15 minutes, 9 seconds Gross debt stood at 228 cr as on 31st December 2025. 15:16 15 minutes, 16 seconds Cash and bank valance stood at 11.4 cr. 15:20 15 minutes, 20 seconds Total capex for 9 month period FY26 stood at 44.6 cr which includes planter 15:27 15 minutes, 27 seconds machinery, buildings, molds and other equipments. 15:31 15 minutes, 31 seconds Thank you. Now I open the floor for questions and answer. Over to you operator. 15:37 15 minutes, 37 seconds Thank you very much. We'll now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. 15:48 15 minutes, 48 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use 15:56 15 minutes, 56 seconds handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question assembles. 16:06 16 minutes, 6 seconds There is so much of background noise. I don't know whose phone it is. 16:15 16 minutes, 15 seconds We take the first question from the line of Sagar Jwani from Philip Capital PMS. Please go ahead. 16:23 16 minutes, 23 seconds Yeah. Uh congratulations on a good Q3. 16:26 16 minutes, 26 seconds Uh so due to the favorable tariff rates now uh what will be our pricing strategy in US market? Will we be uh rolling back 16:34 16 minutes, 34 seconds the discounts in a calibrated way? Uh in which case when can the full roll back be effective from? So that's my first question. 16:45 16 minutes, 45 seconds All right. So um yeah uh like I said the roll back is happening on a pro data basis in with 16:54 16 minutes, 54 seconds immediate effect. I mean 50% tariff is still about 18% right? So to according so post pro data to that the roll back 17:04 17 minutes, 4 seconds is already we have already informed all our customers it will be with im immediate effect. 17:11 17 minutes, 11 seconds Yeah good to know that and uh you know I can see the sharp realization drop in the coursing of course for the obvious 17:18 17 minutes, 18 seconds reason uh want just wanted to understand uh what was the discounting on the effective discounting on the products to combat the high tariff rate in Q3. 17:27 17 minutes, 27 seconds Yeah, it's I mean I can just tell you range approximately it was I think between 50 to 50 to 20%. 17:36 17 minutes, 36 seconds Okay. Okay. For the entire basket of products you're saying you ask business. 17:43 17 minutes, 43 seconds Okay. Uh third is that you know a couple of stores in Mumbai we had seen a closure. I'm not sure it's a closure. Uh 17:51 17 minutes, 51 seconds are these stores getting relocated? Can you comment on that please? 17:57 17 minutes, 57 seconds But Bombay is you know this is all this coaster highway coming in now I think I think we have done our purpose 18:06 18 minutes, 6 seconds everybody knows there was no goodfall happening mall is now kind of run down if you're talking about the atria mall so we have one in now but we are opening 18:15 18 minutes, 15 seconds new ones now towards the new new Bombay and also in south Bombay we are looking at around the Mahalakshmi hill side. 18:24 18 minutes, 24 seconds Okay. Uh yeah and lastly uh this non uh US market IKEA sales can you comment how is it progressing? 18:33 18 minutes, 33 seconds Um like I said I think overall across Europe we we see uh good increase. Uh I would say some of the area there's a 18:41 18 minutes, 41 seconds sharp increase. Uh IKEA per se is doing exceptionally well. Uh we had some 18:49 18 minutes, 49 seconds probably the highest sales last month IKEA. So I think it's doing pretty well. 18:53 18 minutes, 53 seconds um they like our sinks. We invested in new molds. We've been investing as we 19:00 19 minutes now last time we have about close to 70 80% of the ITR's global business. 19:07 19 minutes, 7 seconds So would you be would you be able to please quantify the volume number if so for for non- US market IKEA? 19:15 19 minutes, 15 seconds Yeah. So because of the agreements with them, we cannot just openly announce what numbers we do with them. But I 19:22 19 minutes, 22 seconds think uh you can contact our investor relation. They will provide you as much as information we can to you. 19:30 19 minutes, 30 seconds Sure. Thanks a lot and all the best. Yeah, you're welcome. 19:36 19 minutes, 36 seconds Thank you. Our next question is from the line of Aijit Shid from SBI Cap Securities. 19:45 19 minutes, 45 seconds Please go ahead. Yeah. Hi. Uh thanks for the opportunity. 19:49 19 minutes, 49 seconds Uh sir I just want to understand uh in the last quarter you mentioned that you want to enter into the hard surfaces uh 19:56 19 minutes, 56 seconds in the UK business. So sir any progress on that? 20:00 20 minutes Sorry I'm I'm not able to understand what he said. 20:02 20 minutes, 2 seconds So what did you say last time I said uh sir your guidance on entering into the art surfaces for the UK business. So any progress on that part? 20:14 20 minutes, 14 seconds The fabrication business first prototype is coming up uh by April. Uh when we are 20:21 20 minutes, 21 seconds doing the expo the 2.0 summit we would like we are going to display this new uh 20:29 20 minutes, 29 seconds traffication business in that expo. So it is going to come as fast as in quarter one. 20:37 20 minutes, 37 seconds Understood. Understood. Uh sir uh any guidance on the borrowing part uh for FI27 and FI28? 20:45 20 minutes, 45 seconds Yeah, I'll just hand over my CFO and you want to you want to come in? 20:50 20 minutes, 50 seconds Yeah. So on the borrowing side if you look at our debt uh we actually reduce 20:56 20 minutes, 56 seconds the debt from uh March of 253 cr to current 228 cr. So uh we don't have any 21:04 21 minutes, 4 seconds plan as such on the borrowing on the capex side. Uh maybe for the growth we'll have some borrowing on the working 21:12 21 minutes, 12 seconds capital. Overall we are going to keep the rate. 21:15 21 minutes, 15 seconds No we not yeah we don't want to borrow we don't borrow much. So I think we are having a budget meeting in March uh by I 21:24 21 minutes, 24 seconds think third March. So we can provide you with some information after we do our uh board meeting on budget for the next financial year. 21:34 21 minutes, 34 seconds Understood sir. Uh sir on the kitchen appliances part sir uh how much is the mix uh in terms of domestic and international revenue mix? 21:45 21 minutes, 45 seconds No right now we are doing all 100% Indian business 100% international 21:53 21 minutes, 53 seconds right now the whatever the appliances business we are assembling manufacturing 21:59 21 minutes, 59 seconds or trading in India is 100% it is India UAE and the Gulf market is one peculiar 22:06 22 minutes, 6 seconds case where we are now doing appliances about 80 to 90% is appliances sales 22:13 22 minutes, 13 seconds example We were targeting I think 10 uh we did 10 CR 20 CR uh so targeting 30 CR 22:23 22 minutes, 23 seconds next next year for example very 80% with the built-in appliances business of carousel 22:31 22 minutes, 31 seconds uh all right sir that's it for myself thanks thanks for answering my question you mind muting so much background noise 22:40 22 minutes, 40 seconds then you can come in when you Thank you. Our next question is from the line of Prates from Lucky Investments. 22:50 22 minutes, 50 seconds Please go ahead. 22:52 22 minutes, 52 seconds Yeah. Hi. Uh just uh you know trying to correlate uh the presentation. So just wanted to check 22:59 22 minutes, 59 seconds uh United Granite LLC. So that arm of the business is basically the surfaces 23:06 23 minutes, 6 seconds portion of the business in US or it is something or it's something else because I'm just trying to correlate with the bar chart which is put ahead of that uh pie chart. 23:16 23 minutes, 16 seconds Okay. No, it is 100% surfaces fabrication designs 100% surfaces. Okay. So 23:25 23 minutes, 25 seconds I mean I mean I mean I mean could be I would not quote 100 100%. It could be five% could be sinks and faucets some 23:32 23 minutes, 32 seconds other things. So but it is majority surfaces fabrication. 23:38 23 minutes, 38 seconds So then when it comes to surfaces it's carousel surfaces and united granite right these are the two subsidiaries which will do the surface business. 23:46 23 minutes, 46 seconds Yeah. So then that's what the technology getting to India. 23:51 23 minutes, 51 seconds Okay. Can you uh can you little bit uh you know highlight the ch the the growth 23:59 23 minutes, 59 seconds rates there in these 2% of the three businesses the surface as a whole and what are the what are the near-term 24:07 24 minutes, 7 seconds demand trends basically yeah so I think one big change in profits and I think we probably would I 24:14 24 minutes, 14 seconds have an investor or probably Anan can pretty well let you know later is but one big thing change we are doing is we 24:22 24 minutes, 22 seconds Mantra is cut less make more. So we are now cutting exotic stones a very very high-end stones. So our gross margin 24:29 24 minutes, 29 seconds approximately have improved from 35% to 50% plus. I think that is one that's a one big shift what what we are doing in 24:38 24 minutes, 38 seconds the uh fabrication. Second, we have started doing all complicated business of like fire uh of the fire surfaces and 24:48 24 minutes, 48 seconds wash basins for the bathrooms and so we started taking orders more complicated to to increase our gross margins. Yeah. 24:55 24 minutes, 55 seconds So basically we targeting high-end market in the in the the DMV area. As far as the UK is concerned, I think UK is kind of going through a slow pace. 25:06 25 minutes, 6 seconds this uh soft tax you know it's market is quite soft and muted part of but we are now targeting 25:14 25 minutes, 14 seconds newer customers who are making specialized surfaces into the bathroom into the DIY stores into 25:24 25 minutes, 24 seconds yachts so and we're introducing new colors to expand our current range in the UK market 25:32 25 minutes, 32 seconds okay uh so sum total this piece surfaces should grow at what rate? So when I look at the 9 month number also uh your 25:41 25 minutes, 41 seconds quartz has grown 24 SS has grown 12% appliance has grown 20 but it looks like that the surface piece 25:48 25 minutes, 48 seconds is flat you know I'm combining both of them uh so if I have to look slightly ahead you know you know what should the 25:55 25 minutes, 55 seconds surface grow should be so I I I think um I think I to say but I think on likely on on likelihood end of 26:05 26 minutes, 5 seconds this year the US services will grow by 15% in the current year. UK UK UK 26:12 26 minutes, 12 seconds business will be still soft for the current year. Okay. 26:18 26 minutes, 18 seconds Yes. And what I see in quarter three is your growth rate coming off because of the surface business. Otherwise, you 26:25 26 minutes, 25 seconds know, your growth rate would have been even better. 26:28 26 minutes, 28 seconds Yes, that's that's that's correct. And when do you post because it's also by a 26:36 26 minutes, 36 seconds seasonal seasonal quarter for saints also. 26:41 26 minutes, 41 seconds Okay. And what should be the growth rate with in UK business in surfaces uh you know once you you know go through this part. 26:50 26 minutes, 50 seconds Yeah. So right now it is very very challen challenge challenging environment. It's you know it's kind of very very tough to say. I think we are taking a quarter at a time. 27:02 27 minutes, 2 seconds But the but I think the good the I think the good part is we have a business under control and we have the margins 27:09 27 minutes, 9 seconds under control and we have customer but it's very it's a challenging UK services offices but the good part is like I said 27:17 27 minutes, 17 seconds we still make good money and I think we got a situation under control but it's challenging and my last question is uh based on the 27:26 27 minutes, 26 seconds quartz capacity that you added uh will I buy the quarter one and uh SS capacity 27:33 27 minutes, 33 seconds that you're adding in quarter one your peak utilization of these expanded capacities you should attain in which 27:41 27 minutes, 41 seconds quarter you should attain in quarter four of next year or it will go beyond that see all likely all likely now with the 27:51 27 minutes, 51 seconds US tariff sorting out with what the growth we are with IKAS and all I think we are looking at a very very immediate 27:58 27 minutes, 58 seconds uh utilize of the capacity Okay. So even quarter 4 F27 is uh 28:07 28 minutes, 7 seconds is more better than even quarter 47. 28:14 28 minutes, 14 seconds I mean kind of should be you know now with the okay this has gone off our head. 28:22 28 minutes, 22 seconds Correct. 28:23 28 minutes, 23 seconds Correct. Thank you very much sir. All the best you guys. Thank you. Thank you. 28:28 28 minutes, 28 seconds Thank you. Our next question is from the line of Vik Bafna from Monarch Network Capital Limited. Please go ahead. 28:38 28 minutes, 38 seconds Um so sir, congratulations sir on the good setout numbers. Sir firstly sir I want to understand 28:46 28 minutes, 46 seconds uh more about the gross margin expansion uh which has taken place. So does this 28:53 28 minutes, 53 seconds include our currency tailwinds um you know currency difference uh profits over here? 29:01 29 minutes, 1 second Yeah. So Anand will answer. 29:04 29 minutes, 4 seconds Yeah. So Vic this uh margin expansion came mainly from the raw material price 29:11 29 minutes, 11 seconds imported raw material price. MMA prices has gone down from 2.2 29:18 29 minutes, 18 seconds $2.02 02 in April to $1.5 in December. So there's a good uh I mean 29:28 29 minutes, 28 seconds uh value we got in the raw material pricing and therefore this margin expansion happened on the gross margin side. That's the main reason. 29:40 29 minutes, 40 seconds So sir uh do we expect this to continue for coming few quarters as well? uh now the world is so dynamic it's very 29:49 29 minutes, 49 seconds difficult to predict uh but uh what we do normally we do three month uh forecast and we give the orders based on 29:58 29 minutes, 58 seconds that so uh I think we will continue with this range 1.5 to 1.6 six for at least next two three months. That's the prediction we have. 30:10 30 minutes, 10 seconds Got it sir. 30:12 30 minutes, 12 seconds And sir uh on the uh it's an appliance uh part um sir uh which are the products 30:21 30 minutes, 21 seconds which are growing and which are the products which are not performing well for us. Is there any view over it? 30:29 30 minutes, 29 seconds So I think it's be very uh I think pretty similar the 70% of the sales are of 30:38 30 minutes, 38 seconds kitchen hoods and the hobs and out of which 80% are the hoods since we are starting our own assembly and 30:45 30 minutes, 45 seconds manufacturing and 30% is ovens and wine chillers. I think it's pretty stable. We have not seen any decline happening in any other category. But what we have 30:54 30 minutes, 54 seconds seen a big increase is obviously in terms of the new bioix which we launched and our wine chillers that has shown a sharp increase. 31:06 31 minutes, 6 seconds Got it sir. 31:08 31 minutes, 8 seconds Okay sir that's it from my Okay. Thank you. 31:14 31 minutes, 14 seconds Thank you. Our next question is from the line of Risha Maha from Green Edge. Please go ahead. 31:24 31 minutes, 24 seconds Yeah, thank you for the opportunity. Um, so one is just a clarification. So you know while volumes have grown very handsomely, revenue growth has only been 31:31 31 minutes, 31 seconds 10%. So all of this is attributed only to the discounts that we've passed on to our customers in the US or is there also 31:38 31 minutes, 38 seconds a product mix uh impact mix change impact? 31:42 31 minutes, 42 seconds Most mostly it's due to discounts. Yeah, sorry. mostly it's a 31:48 31 minutes, 48 seconds mostly due to dis discounts to the US right and uh uh and you know the other part 31:56 31 minutes, 56 seconds like we've uh you know around some capacity expansions across products but uh so now you know with all this u you 32:03 32 minutes, 3 seconds know u uh the tariff headwind kind of behind us and you know so many trade deals having been signed right uh you 32:10 32 minutes, 10 seconds know what is our growth projection uh you know for the next financial year assuming uh you know status score remains on the deals and the tariffs 32:19 32 minutes, 19 seconds etc. So what is our growth projection and with that do you think that you know in the next four to five months you know we may again have to you know kind of 32:27 32 minutes, 27 seconds add capacities especially on the court singing side because if I recall correctly you know two three month uh you know uh around two quarters ago we 32:35 32 minutes, 35 seconds were very buoyant and optimistic on you know so many uh new customer deals that we were signing and I think we were planning to add two lakh cords capacity 32:44 32 minutes, 44 seconds uh which is now you know one lakh cords capacity addition instead. So do you think the capacities will fall short based on our revenue targets? 32:54 32 minutes, 54 seconds So I mean interesting uh question rich man I think let me just address it. This will probably benefit a 33:01 33 minutes, 1 second lot of a lot of members in this. So you know first of all this all this deals happening around the globe and carousel 33:09 33 minutes, 9 seconds being more like internationally exposed x to expose our concern. The good thing has happened is that we have always 33:16 33 minutes, 16 seconds invested in customer relationships and this whole discounts being offered to sustain the US customers showing your 33:26 33 minutes, 26 seconds goodwill, showing the gesture, it is only going to pay back to you. Um I 33:33 33 minutes, 33 seconds believe or maybe I'm wrong but uh there are a lot of companies have not passed on this. Um maybe sooner or later I 33:42 33 minutes, 42 seconds think this I I don't know if it works but for us I got this calls uh I would also like to express uh that the Lowe's 33:51 33 minutes, 51 seconds senior team was here a few months back they we also got a joint supplier the best award to the lows uh I think we 33:59 33 minutes, 59 seconds have alltime high sales right now at the lows the lows is planning to double the SKUs at their stores uh in the in this 34:08 34 minutes, 8 seconds uh 2026 um all the customers have been calling across the world uh US yes obviously 34:17 34 minutes, 17 seconds happened recent Europe was very upbeat so I think there's a great mood with India right now and I think the way we 34:25 34 minutes, 25 seconds have been seeing the inquiries floating in uh I think whatever the deals we promised I don't think we're bond I 34:32 34 minutes, 32 seconds think we are still very bonded on it uh quarter three it is a with a 50% tariff. 34:39 34 minutes, 39 seconds I would like to tell that my team did a great great job in order to counter this headwind. It's it's not easy when you 34:48 34 minutes, 48 seconds are sitting at your office and factory and you're hitting with a 50% tariff. 34:54 34 minutes, 54 seconds Right? So I think it is we are not slowing down. Only thing this can put you up now is on a fast growth track. 35:01 35 minutes, 1 second nothing can be backtracked. uh with all this uh momentum building in the United 35:08 35 minutes, 8 seconds States with our current customers, new customers and the European customers, I think we only see that there is a 35:16 35 minutes, 16 seconds definitive u uh I would I would not say a small but I would say there is a high 35:24 35 minutes, 24 seconds uh potent there's a high uh probability of capacity expansion in 2026. 35:33 35 minutes, 33 seconds further to what we have announced right and then you know 15% revenue growth is doable or we don't still have 35:41 35 minutes, 41 seconds that visibility for FI27 I I think I I think I think we got to do I think you know people who people who 35:49 35 minutes, 49 seconds kind of know know me and my company to be very candid about it you know we I mean the company was not even doing 100 35:57 35 minutes, 57 seconds crore turnover right 10 years back you know so I think it is good I think our moment term has been very strong. Uh 36:04 36 minutes, 4 seconds Carousel I think we are closing in by the closing to the quarter 4. I think very confident we'll cross the 100 36:13 36 minutes, 13 seconds million dollar mark. Uh we are we have told you that carousel 2.0 we looking at 36:20 36 minutes, 20 seconds adding another 100 million dollars. So you will see a great lot of excitement if you're going to be there on fourth of March uh fourth of April. 36:29 36 minutes, 29 seconds Sure. Sure. Thank you for that. And you know the last question is on the UK business while you did answer about uh you know carousel surfaces but on 36:37 36 minutes, 37 seconds carousel products right is there any firepower or you know any internal initiatives you know uh that you know we 36:44 36 minutes, 44 seconds can you know look at just to you know get onto the growth trajectory because we understand that the UK economy is not 36:51 36 minutes, 51 seconds doing well but still are there any levers left for you know with in terms of internal initiative initiatives to guide growth 36:59 36 minutes, 59 seconds right see the diversification and product d uh product expansion is the fastest way by adding new customers. Uh we have a we have a great English team. 37:11 37 minutes, 11 seconds We recruited some new senior and experienced people to put the appliances 37:18 37 minutes, 18 seconds and the forces on a fast growth track in the in the UK. We recruited business development managers to further expand 37:27 37 minutes, 27 seconds in the companies which people have left or some companies have got closed. We got experienced people from there to maximize our market share. Third we have 37:36 37 minutes, 36 seconds did I announced that carousel is putting his first uh huge showroom it is in Manchester right on the right on the 37:44 37 minutes, 44 seconds design district. So I think kind of launching your brand, building momentum on your brand, increasing your market presence is the way to go. So there's 37:53 37 minutes, 53 seconds lot of fire around my UK team right now to build the carousel there. I think you see it in the UAE. I think they got very excited seeing the UAE project how it 38:02 38 minutes, 2 seconds turn out to be literally like you know it's going to be zero to 30 crores in three three years time with kosin brand 38:09 38 minutes, 9 seconds you know. So I think uh my so my team is all fired fire fired up. I I was in UK last last week. I'll just try to assess 38:17 38 minutes, 17 seconds the situation and what more opportunities we have. 38:21 38 minutes, 21 seconds So basically what you're trying to say is carousel products can probably you know arrest degrowth or you know get onto the growth path because you know we have rejuvenated the team with new 38:30 38 minutes, 30 seconds hiring and also with new customer addition largely right uh we are we are not going to leave any 38:37 38 minutes, 37 seconds stone unturned to fire up growth there that's all I can say fair enough um thank you so much and all 38:45 38 minutes, 45 seconds the best thanks thank you our next Question is from the line of Sanjay Ladha from Bastian Research. Please go ahead. 38:57 38 minutes, 57 seconds Hi sir, thank you for the opportunity and congratulations on a good set of numbers. So my question would be what will be the benefits from EU bilateral 39:06 39 minutes, 6 seconds trade which you know previously when we export to you how much percentage of increase in our product price and now 39:13 39 minutes, 13 seconds what will be the benefit from this since the trade deal has been done on that side? 39:20 39 minutes, 20 seconds See as far as your as far as our current business is concerned to be very honest it's not going to be like a this launch 39:27 39 minutes, 27 seconds like the US right but what has happened like I said this customer this whole feeling good factor now with 39:34 39 minutes, 34 seconds India and Europe we see more inquiries would be coming into us so that's one and and and and also number two you'll 39:42 39 minutes, 42 seconds able to see a lot of synergies and collaborations now happening with Europe so I see a big upside From that point of 39:49 39 minutes, 49 seconds view, it could be from the point of brand, it could be point of technology distribution across uh since we are 39:57 39 minutes, 57 seconds actively presence uh in the in the European market. Uh people are with this area of they they feel very good about 40:06 40 minutes, 6 seconds this India relationship and I think both the I think both from our side and my European customers side we've been 40:14 40 minutes, 14 seconds seeing that they want to invest in us more and more. So I think that's going to turn out quite positive for us. 40:24 40 minutes, 24 seconds Secondly, uh since you already mentioned that you know in the Q3 there is a discount factor attached to that. I'm 40:32 40 minutes, 32 seconds assuming because of 80% uh tariff in the US market. Uh in Q4 the discount will be 40:39 40 minutes, 39 seconds gone up largely and therefore we will see you know momentum building up going forward. Is that the right understanding? 40:49 40 minutes, 49 seconds We going to roll back the prices based on the proa 50 to 80 100%. and we 40:58 40 minutes, 58 seconds announced with our customers and we are going to do that and just uh since you know you you in 41:07 41 minutes, 7 seconds the past you have said that you know you are building up from so we we are largely right now US UK and the India 41:14 41 minutes, 14 seconds focus and you said that you are developing new market as well uh any color on that side which market we are 41:21 41 minutes, 21 seconds you know focusing more which market we see more attraction on that side any any color on Is that correct? 41:29 41 minutes, 29 seconds Yeah, sure. I mean I did say that uh we've been focusing on on lot of new markets. We've been focusing either on 41:37 41 minutes, 37 seconds the Gulf which is very very huge. We are doing across north um Nina, Middle East, 41:44 41 minutes, 44 seconds North Africa. Uh we are expanding into the European belt. I gave four five countries from Morocco, Croatia and all 41:53 41 minutes, 53 seconds that part. We are also strengthening our presence in Europe now with uh Spain in 42:00 42 minutes Italy. For example, we just got a new OEM customer which is the probably the number one luxury brand in the 42:09 42 minutes, 9 seconds appliances is called Smeg. You would have heard about the brand iron appliances. We got our first orders 42:15 42 minutes, 15 seconds from there. So we have a lot of action now from Europe inside the European 42:22 42 minutes, 22 seconds countries which is again of 58 nations we are hardly at 20% in that. So we see we have seen overall IKEA business 42:31 42 minutes, 31 seconds across Europe happening right with their presence uh more countries uh than it is 42:37 42 minutes, 37 seconds Sweden. we are developing um our brand in South Africa, Australia and so I we 42:44 42 minutes, 44 seconds the emerging markets right is going to show I'm pretty sure if you just minus 42:52 42 minutes, 52 seconds America because that's a huge pie and so if you want to compare but I think the significant growth will come from the 43:01 43 minutes, 1 second emerging markets in 2026 right and sir uh my last question would be well in the past we have alluded that 43:09 43 minutes, 9 seconds Indian market and in the commentary also you said that you are looking Indian market at a 500 cr mark in a five year 43:16 43 minutes, 16 seconds time frame but uh uh any so you in the past you have said that you will share some strategy how will you going to 43:24 43 minutes, 24 seconds achieve that and what are your vision on that side u any color on that side or will you see that in Q4 you know in the 43:34 43 minutes, 34 seconds time of need or something sort of on No, we are going to do this budgeting in our next budget 43:43 43 minutes, 43 seconds meeting and we would be rolling out this plan on 4th of April in Babombay 100%. 43:50 43 minutes, 50 seconds And it is and it is just not talking I want like seeing is believing. So we going to display all the products what 43:58 43 minutes, 58 seconds we planning to roll out in India within the next five years time. How we going to build? What's our strategy going to be? 44:06 44 minutes, 6 seconds everything looking forward sir. Thank you so much. 44:09 44 minutes, 9 seconds So please please sat in your seat belts for some time and I think fourth April 44:16 44 minutes, 16 seconds uh you should get in touch with our uh with our team and they will let you know the slot where the investors can meet me 44:24 44 minutes, 24 seconds and my team. There will be my global team also. will be my key core team of India also which will be there 44:33 44 minutes, 33 seconds uh presenting you with the not with the global and the India plan. So we will walk through the five years of India. 44:44 44 minutes, 44 seconds Thank you so much sir. Thank you. Thank you. Yeah. 44:49 44 minutes, 49 seconds Thank you ladies and gentlemen. in order to ensure that management is able to address questions from all the participants in the conference. Please 44:58 44 minutes, 58 seconds limit your questions to two per participant. 45:01 45 minutes, 1 second Our next question is from the line of Netic from Envy Alpha Fund. Please go ahead. 45:08 45 minutes, 8 seconds Uh hi sir. Uh thanks for taking our question. So my first question is uh you know I just wanted to know uh what sort of realizations both in our quads and 45:16 45 minutes, 16 seconds steel things are uh sustainable on an annual basis. 45:24 45 minutes, 24 seconds What sales uh price uh realization yeah realization per unit in in both quarts and steel things what what levels are sustainable? 45:35 45 minutes, 35 seconds Yeah. So right now as you see our past track we our average realization piece is going about I think anywhere under 5 45:43 45 minutes, 43 seconds to 10% right year on year of average sales price. So yes I think so I think we 45:51 45 minutes, 51 seconds see what is sustainable is not that's a very very finance finance question but I'll tell you answer what the company is 46:01 46 minutes, 1 second constantly focusing on high valuated products so I do remember when I joined 46:11 46 minutes, 11 seconds carousel back in 90s late 90s the average price of a sink was 2,400 46:18 46 minutes, 18 seconds rupees. I think now it's about 6,000 rupees, right? Just give you an idea. Uh when we launched faucets, I think it was 46:26 46 minutes, 26 seconds about 3 4,000 rupees of faucet. Now it's about maybe 8 9,000 of faucets. So I think we have constant endeavor to 46:34 46 minutes, 34 seconds maximize our uh offerings or more valued products. So I think with that thing in mind and obviously we are a very margin 46:43 46 minutes, 43 seconds conscious company. We believe in high margin model. So I think looking at that I would not be able to tell you exactly 46:52 46 minutes, 52 seconds but yes it is sustainable uh with the strategy what company has on 46:59 46 minutes, 59 seconds developing and with high technology products high design products and increase the validation here on 47:08 47 minutes, 8 seconds unless if there is some kind of a tariff and we are to discount the price and then that's a different story. 47:16 47 minutes, 16 seconds Got it. So 6,000 kotic can increase depending on uh how much value added or product exchange. 47:22 47 minutes, 22 seconds I think it's about five and a half to six and a half. Yeah. 47:27 47 minutes, 27 seconds Got it. Got it. Uh so the second question is you know given that majority of the growth comes from surfaces you know this quarter and uh the US subsidy 47:36 47 minutes, 36 seconds seems to have degrone the most. So I just wanted to understand what is leading to this growth is this just a change in product mix that we are doing 47:44 47 minutes, 44 seconds one and two uh is that substantively profitable or we are not making profits there. 47:51 47 minutes, 51 seconds Okay. So I I don't so maybe I kind of lost you in there uh because you're speaking so fast but so I was talking 48:00 48 minutes I think the US will show growth US will show growth US profits are consider considerably 48:10 48 minutes, 10 seconds uh grows now and and for the year UK like I said it's going to be a challenging situation 48:17 48 minutes, 17 seconds in UK but we still our profits are quite good Not in terms of actual like last year but yeah it's it's quite good. Our 48:26 48 minutes, 26 seconds subsidiaries in UAE I think doing exceptionally well. We were targeting I think about 10 crores. I think we'll be 48:34 48 minutes, 34 seconds ending this year more than 20 crores. So I think rest of the subsidies are good. 48:38 48 minutes, 38 seconds I think we just have to kind of sail through this a bit of rough time in UK. 48:44 48 minutes, 44 seconds Got it. And your subsidy currently is can you please it's just a follow up on the same. Yeah. 48:51 48 minutes, 51 seconds Yeah. Just a follow up on the same I'm rejoining after this. Thank you. 48:56 48 minutes, 56 seconds So our next question is from the line of 49:04 49 minutes, 4 seconds Chintan Sha from JM Financial Family Office. Please go ahead. 49:09 49 minutes, 9 seconds Hi. Uh thank you so much for the opportunity. So I have two questions. So one is again on this surfaces segment. 49:15 49 minutes, 15 seconds So if I see a PPT, it is one of the largest segments among all the product lines we have and is also growing at the fastest pace. So I mean just to get a 49:24 49 minutes, 24 seconds better sense from the next at least four five year perspective. What are we really doing to sort of you know gain more market share here because 49:32 49 minutes, 32 seconds potentially this could be a very very large segment for us. 49:35 49 minutes, 35 seconds Just wanted to know your thoughts on this. 49:37 49 minutes, 37 seconds No, we are so I think you know you're absolutely right. We call it the KBS strategy, kitchen, bathroom and offices strategy. The idea is to bring this 49:47 49 minutes, 47 seconds surfaces because we see a very very high potential. So fabrication is we wanted to expand our fabrication business 49:56 49 minutes, 56 seconds globally. uh especially right now just US and UK but India we are bringing in the idea is to build your fabrication 50:04 50 minutes, 4 seconds competency of such a level and purchase those quarts and a granite business which can be integrated seamlessly with 50:12 50 minutes, 12 seconds your kitchen sink to add value to it right and then we want to kind of make that a branded product that carousel 50:20 50 minutes, 20 seconds technology fabrication you know we have seamless integration of a kitchen sink which again we will show to on the April 4th at the at the expo. 50:29 50 minutes, 29 seconds Um I I don't think so we are we are going to give up. I think we completely believe that everything like needs a 50:37 50 minutes, 37 seconds faucet. It also needs a worktop. So we we you are absolutely right. I think that scale could be the I I think could 50:46 50 minutes, 46 seconds be really different. Um as you know that we acquired these companies and we are learning this process how to grow. uh 50:54 50 minutes, 54 seconds just as the quad sinks we launched decades back and took time. The same way I think the surfaces may not take so 51:02 51 minutes, 2 seconds much time but we have kind of now getting the grip on it. Once we get the grip on it I think we are we will be 51:09 51 minutes, 9 seconds ready to scale across the world understood. So now just you know trying to understand the guidance better that 51:17 51 minutes, 17 seconds you're giving of 15 to 20% sort of run over revenue growth rate over next 3 years. So if I see I mean surface is one 51:26 51 minutes, 26 seconds segment which will grow fast and India is where we're looking to almost like four 5x revenues and plus we're expanding a lot in other geographies as 51:33 51 minutes, 33 seconds well. So keeping all this in perspective um I mean this revenue guidance sort of 51:39 51 minutes, 39 seconds in concern I mean what are your uh thoughts on any particular reason why we sort of expect it to be 15 20% only 51:48 51 minutes, 48 seconds growth growth and speed is if anybody knows our company and we we know 51:55 51 minutes, 55 seconds that we don't leave any stone unturned right so I think that is what the least I think anybody would expect from us to 52:04 52 minutes, 4 seconds go at a 15 20% I think company will not leave any stone unturned to achieve achieve this uh as we said that global 52:13 52 minutes, 13 seconds markets are volatile you know what are the geopolitical situations so you know it's very very tough but if you know us 52:22 52 minutes, 22 seconds and my company I think we'll leave no stone unturned to grow this company to carousel 2.0 which we want to we will launch it in 52:31 52 minutes, 31 seconds fourth April and try to see how do we now how fast can we bring another $100 million sales 52:40 52 minutes, 40 seconds and just remember this last bookkeeping question for Mr. An so on the quad size as well as stainless steel size 52:49 52 minutes, 49 seconds basically for the three customers basically carrots uh go as well as it so just wanted to uh get a sense from a 52:56 52 minutes, 56 seconds current capacity what sort of volumes uh are contracted with this guys I mean just on a total basis I don't want to 53:03 53 minutes, 3 seconds separate for each of them so I think customer wise is not able to give you the numbers because we have a confidency agreement with the customers. 53:15 53 minutes, 15 seconds You can ask overall and all margin. Yeah. You just 53:23 53 minutes, 23 seconds want an idea share of business. 53:31 53 minutes, 31 seconds Hello. 53:32 53 minutes, 32 seconds Yes, that's right. I mean in terms of volume you can give uh share from all three customers. 53:38 53 minutes, 38 seconds So maximum or three putting together could be around 40% of business 53:46 53 minutes, 46 seconds for both quartz and stainless as well quartz I'm talking about I I know I I I know so I can tell you 53:53 53 minutes, 53 seconds this roughly if you ask the US IKEA and all put together would be about more 54:00 54 minutes than 60% of the business okay okay fine understand I'll give Thank you so much. 54:11 54 minutes, 11 seconds Thank you. 54:13 54 minutes, 13 seconds Participants, please limit your question to one per participant. 54:17 54 minutes, 17 seconds Our next question is from the line of Mahul Puani from 40 cents. Please go ahead. 54:25 54 minutes, 25 seconds So thank you so much. Uh I have some questions on your branding. So first is uh uh the Sanhagen brand in Smeg Italy 54:33 54 minutes, 33 seconds and also whether we uh are we selling uh our products that are being sold in IK India as well. So these three questions can you tell us uh elaborate a bit on Stanhagen? 54:44 54 minutes, 44 seconds Yeah. Stone the Stone the Stoneagen the Stoneagen brand is now being launched in the UAE 54:52 54 minutes, 52 seconds will be launched in the UK and it's launched in the Germany. Uh Smeg is we are not doing with SMMEG we 55:01 55 minutes, 1 second are OEM suppliers to SMAG right and your third was what what is that? Sorry I missed it was are we are 55:10 55 minutes, 10 seconds we selling in IK India? Yes, we are selling. I can and Stanagon is our own brand, is it? 55:17 55 minutes, 17 seconds Yes, it's our own brand. Yeah. Okay. Okay. Thank you so much, sir. 55:23 55 minutes, 23 seconds Thank you. Our next question is from the line of Naman Parmar from Nvesha Investments. Please go ahead. 55:32 55 minutes, 32 seconds Yeah, thank you so much for the opportunity. So just wanted to know any import duty is there on the kitchen sinks and bathroom fittings in the UK or the European markets? 55:46 55 minutes, 46 seconds No, it's only about two one and a half to two%. It's okay. 55:53 55 minutes, 53 seconds It's very low. 55:55 55 minutes, 55 seconds Okay. And secondly on the surface is business in the US market. So what the margin on that particular business is if you can elaborate. Okay. 56:05 56 minutes, 5 seconds So I can tell you on the gross margins the exhaust margins we have expanded from 35 to more approximately 50%. 56:14 56 minutes, 14 seconds Okay. 35 to 50. 56:18 56 minutes, 18 seconds Okay. So overall you're seeing a very good demand scenario on the US perspective compared to the UK market, right? 56:27 56 minutes, 27 seconds Yes. I mean for the time being I would not say long term let's say but I mean 56:33 56 minutes, 33 seconds obviously United States is is a much bigger market. Yeah. 56:39 56 minutes, 39 seconds Okay. Yeah. Understood. Okay. Thank you sir. 56:43 56 minutes, 43 seconds Thank you ladies and gentlemen. Due to time constraint we take that as the last question for today. I would now like to 56:52 56 minutes, 52 seconds hand the conference over to Mr. Chur for closing comments. 56:57 56 minutes, 57 seconds Yeah, can somebody mute please? lot of background noise and sorry I don't know whose phone but 57:04 57 minutes, 4 seconds thank you everyone I hope we've been able to answer all your questions satisfactoryy however if you need further clarification or want to know more about 57:12 57 minutes, 12 seconds our company please get in touch with uh GIA team my investor uh relations advisor 57:20 57 minutes, 20 seconds thank you and have a great day thank you on behalf of Caris Limited 57:28 57 minutes, 28 seconds that concludes this conference. Thank you for joining us and you may now disconnect your lines.