Cello World Ltd — Q3 FY26

Cello World Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=-Q8JUh8Ry_I Published: 2 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to seller world Q3 FI26 on call 0:08 8 seconds hosted by ICICI securities limited. This conference call may contain forward-looking statements about the 0:14 14 seconds company which are based on the beliefs, opinions and expectations of the company as on the date of this call. These 0:22 22 seconds statements are not the guarantees of future performance and involve risks and uncertaintities that are difficult to predict. As a reminder, all participant 0:30 30 seconds lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance 0:38 38 seconds during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please 0:46 46 seconds note that this conference is being recorded. I now hand the conference over to Mr. Manan from ICIC Security Limited. 0:53 53 seconds Thank you and over to you sir. 0:56 56 seconds Thank you. Good morning ladies and gentlemen. On behalf of ICICI securities, we welcome you all to Q3 and 1:04 1 minute, 4 seconds 9 month FY26 results conference call of Cello word limited. Today we have with us senior management represented by Mr. 1:13 1 minute, 13 seconds Gorav, joint managing director and Mr. 1:17 1 minute, 17 seconds Atul Paroleia, CFO. Now I hand over the call to the management for their initial comments on the quarterly performance. 1:26 1 minute, 26 seconds Then we will open the floor for Q&A session. Thank you and over to you Goro sir. 1:32 1 minute, 32 seconds Thank you man. Good morning everyone and a very warm welcome to our company earnings call. Joining me is our CFO Mr. 1:39 1 minute, 39 seconds Sul Paroleia and our investor relations advisor HGA. The results and presentations are available on the stock exchange and on our website. I hope you 1:47 1 minute, 47 seconds had a chance to review them. During quarter 3 financial year 26, the demand environment remained mixed. While we saw 1:55 1 minute, 55 seconds a healthy momentum in October, demands softened meaningfully in December making it a relatively weaker December in recent years. Against this backdrop, we 2:04 2 minutes, 4 seconds reported revenues of rupes 553.7 crores with a ebitter margin of 22.1%. 2:10 2 minutes, 10 seconds Additionally, during the quarter, we incurred a one-time exceptional impact of rupes 7.4 cr on account of graduity provisioning pursuant to the implementation of the new labor codes. 2:21 2 minutes, 21 seconds This was a non-recurring adjustment and has impacted profitably for the quarter. 2:26 2 minutes, 26 seconds In quarter 3 financial year 26, our consumer segment recorded a marginal decline in sales primarily due to 2:32 2 minutes, 32 seconds availability constraints in our insulated steel portfolio. During the quarter, we faced stockouts in insulated 2:40 2 minutes, 40 seconds steel products which led to an approximate 40% quarteron-quarter decline in steel revenues. This decline 2:47 2 minutes, 47 seconds was supply driven and significantly impacted overall consumer revenues. 2:53 2 minutes, 53 seconds Had the uh steelware products uh delivered the same growth as last year last quarter uh we would have seen a 3:02 3 minutes, 2 seconds significant uh growth in revenues for the consumerware segment in this quarter. Due to lower production volumes 3:10 3 minutes, 10 seconds and suboptimal absorption of fixed cost in steel, we witnessed a higher sales to revenue cost ratio during the quarter temporarily impacting margins. 3:21 3 minutes, 21 seconds Importantly, had revenues remained at the last year's level, uh the growth would have been approximately 12% year on year uh in quarter 3 of financial year 26. 3:32 3 minutes, 32 seconds Uh we have commissioned a state-of-the-art fully integrated insulated steel bottle manufacturing plant in Rajasthan. Two production lines 3:40 3 minutes, 40 seconds are currently operational with the remaining lines to be commissioned in phases through H1 of financial year 27. 3:48 3 minutes, 48 seconds We expect the steel business to progressively ramp up and return to normal revenue levels over the next couple of quarters. 3:56 3 minutes, 56 seconds I would invite uh a lot of investors to see this plant because it's it's it's very well done and uh I think you can 4:04 4 minutes, 4 seconds gain a lot of confidence from the fact that uh you know we we'll be one of the best producers uh of steel uh in India. 4:13 4 minutes, 13 seconds On the glass web side, our glassware business is currently operating at approximately 60% utilization. 4:20 4 minutes, 20 seconds uh it continues at this utilization levels because uh sales is catching up. 4:25 4 minutes, 25 seconds We are seeing a ramp up in revenues uh in this segment. Uh but as uh we had 4:32 4 minutes, 32 seconds built some stocks this uh we are currently utilizing those stocks for 4:38 4 minutes, 38 seconds revenue generation. Uh we expect uh the utilization levels of glassware to be at this level for at least the next couple of quarters. 4:48 4 minutes, 48 seconds While the category continues to face some pressure due to increased dumping from China, the business has reached break even and 4:57 4 minutes, 57 seconds uh will and is contributing uh and is contributing meaningfully to revenue. 5:03 5 minutes, 3 seconds Profitability from glass will take some time to scale uh as operating leverage kicks in. 5:12 5 minutes, 12 seconds On the writing instrument segment, uh the segment reported a top line of 86 crores delivering a 11% year-on-year 5:19 5 minutes, 19 seconds growth. Uh contribution from the cello brand will start from this quarter and 5:26 5 minutes, 26 seconds should meaningfully uh uh help in increasing revenue. In financial year 27, we expect combined revenues north of 5:35 5 minutes, 35 seconds 500 crores uh with the UNOMAX and CEO grant combined. uh and it the scalability of this uh both brands to 5:44 5 minutes, 44 seconds put put together in the next few years is is immense and you know we're looking at a topline of about 1,000 crores over 5:50 5 minutes, 50 seconds the next few years. The molded furniture category witnessed a 10.6% decline compared to quarter 3 of financial year 5:58 5 minutes, 58 seconds 25. Uh this was primarily because of two reasons. One is because of weak polymer prices which impact this category 6:06 6 minutes, 6 seconds directly and some orders that we had some government orders that we had last quarter which uh were not reflected in this quarter. 6:17 6 minutes, 17 seconds Uh on our strategic priorities uh you know our priorities remain portfolio rationalization. 6:24 6 minutes, 24 seconds Uh so we are continuously evaluating our product portfolio using the 80/20 principle and uh continue to uh you know 6:33 6 minutes, 33 seconds uh basically uh make sure that uh we uh uh we we kind of uh uh are working 6:40 6 minutes, 40 seconds towards uh always uh kind of rationalizing this product portfolio. 6:45 6 minutes, 45 seconds Also premiumization is you know another aspect that we are continuously working on. uh we've kind of increased the mix 6:53 6 minutes, 53 seconds to about 7 to 8%. Over time uh this we want to take it to about 20%. 6:59 6 minutes, 59 seconds Uh the channel mix is also evolving uh digitally. Uh our revenues now are about 7:05 7 minutes, 5 seconds 15.7% of the total revenues. Uh which is meaningfully gaining a lot of traction. 7:13 7 minutes, 13 seconds On the profitability side, the softness in profitability as as mentioned earlier was driven by lower steel volumes and a 7:22 7 minutes, 22 seconds one-time graity impact. Uh this blip uh is very temporary. As steel volumes normalize, we expect margins to revert 7:31 7 minutes, 31 seconds to our uh normalized 22% eid over the next two quarters. 7:37 7 minutes, 37 seconds Uh on the working capital side, we will tread cautiously over the next two quarters with sharper emphasis on working capital optimization and inventory discipline. 7:48 7 minutes, 48 seconds This may temporarily moderate revenues but will strengthen our long-term stability and return ratios. 7:57 7 minutes, 57 seconds We remain confident of delivering about 8 to 10% overall growth supported by the 8:04 8 minutes, 4 seconds steelware ramp up and glassware scaling in the next couple of quarters post which of course the the growth will be a 8:11 8 minutes, 11 seconds lot higher once uh the steel completely kicks in and the glassware completely scales up. 8:18 8 minutes, 18 seconds Also the operating leverage should also kick in by then and we should start returning back to our normalized EBIT 8:25 8 minutes, 25 seconds levels. With that uh I would like to hand over uh to our CFO Mr. Atul Parole for the financial highlights. 8:34 8 minutes, 34 seconds Thank you and good morning to everyone. 8:37 8 minutes, 37 seconds I will be sharing the financial details for the quarter gone by. In quarter 3 financial year 26, the company reported 8:44 8 minutes, 44 seconds revenue of 553.7 K. AITA for the quarter stood at 122.3 K translating into a VA margin of 22.1%. 8:53 8 minutes, 53 seconds During the period, the company incurred a one time impact of 7.4 K due to the implementation of the new Liverpool. 9:00 9 minutes Profit after tax for the quarter was 63.6 cr with a pack margin of 11 and a half%. Coming to the revenue mix, 9:08 9 minutes, 8 seconds consumer contributed 69.5% of the total revenue followed by the writing segment at 15.5% 9:15 9 minutes, 15 seconds while the mod and alli product accounted for the remaining 15%. In terms of channel mix generated and export 9:23 9 minutes, 23 seconds contributed to 75.2% and 9.1% of the sales respectively, online sales contributed 10.6% 6% while 9:32 9 minutes, 32 seconds modern T accounted for 5.1% of the total sales. From a segment wise margin perspective, riding instrument led with 9:40 9 minutes, 40 seconds a gross profit margin of 56.7% followed by the consumer at 50.2% and molded furniture at 39.6%. 9:49 9 minutes, 49 seconds Now coming to the 9 month finally at only 26 performance revenue for the period was rupees 167.1 cr with a 9:57 9 minutes, 57 seconds yearonar growth of 8%. Gross margin level remained healthy at 5 at 51%. AITA 10:05 10 minutes, 5 seconds came at rupees 389.8 cr with a margin of 23.3%. 10:11 10 minutes, 11 seconds The company reported a profit after tax of rupees 222.3 cr resulting in a pet margin of 13.3%. 10:19 10 minutes, 19 seconds With this I would like to open the session for the question and answer. 10:28 10 minutes, 28 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star N1 on their touchstone telephone. 10:38 10 minutes, 38 seconds If you wish to remove yourself from the question queue, you may press star N1 and two. Participants are requested to use handsets while asking a question. 10:49 10 minutes, 49 seconds Ladies and gentlemen, we will wait for a moment while the question Q assembles. 11:14 11 minutes, 14 seconds Participants, if you wish to ask a question, please press star N1. 11:26 11 minutes, 26 seconds The first question is from the line of Vikna from Monarch Network Capital Limited. Please go ahead. 11:34 11 minutes, 34 seconds Um congratulations. 11:36 11 minutes, 36 seconds Um so sir I have two questions. Uh firstly on the consumer consumerware side um can you quantify the growth 11:45 11 minutes, 45 seconds delivered in the opalware and the glassware segment on a quarterly basis and for 9 months as well? What kind of 11:53 11 minutes, 53 seconds growth uh in terms of percentage has the company delivered? 11:58 11 minutes, 58 seconds So hi uh basically so we do not report uh our uh revenue separately uh you know we can get on a call after uh to you 12:07 12 minutes, 7 seconds know understand this better. uh but as I mentioned that uh you know in the consumer segment uh we saw growth uh 12:15 12 minutes, 15 seconds across all our segments except for the steelware which uh you know led to the uh decline of uh revenues otherwise it 12:23 12 minutes, 23 seconds would have been a a decent growth uh given the fact that uh you know we we had a we had a very good growth last 12:30 12 minutes, 30 seconds quarter uh so a lot of the the Diwali sales had come in the September quarter uh having uh you know so so it would 12:37 12 minutes, 37 seconds have been a very good quarter had uh T plus not given us a a stopout situation. 12:45 12 minutes, 45 seconds Got it sir. Um thank you. So that's it for myself. Thank you. 12:52 12 minutes, 52 seconds Thank you. The next question is from the line of Pravin Sahai from PL Capital. Please go ahead. 13:00 13 minutes Yeah. Uh thank you for opportunity. Uh sir my first question is related to your guidance of uh last quarter double digit 13:08 13 minutes, 8 seconds of a revenue growth with a margin of 22 to 23%. 13:12 13 minutes, 12 seconds Uh so where we are about that uh because uh uh if I look at a Q4 with these guidance looks a very high growth in the 13:21 13 minutes, 21 seconds top line as well as uh in the margin as well. So if you can. 13:27 13 minutes, 27 seconds No. So basically uh as for the this thing uh if as I as I mentioned that uh if steelware would have contributed 13:35 13 minutes, 35 seconds meaningfully in this quarter uh this quarter would have been in a double digit kind of a growth uh overall because our writing instrument segment 13:42 13 minutes, 42 seconds also saw good growth. uh and uh of course molded furniture because of the of the polymer prices uh has a direct 13:51 13 minutes, 51 seconds impact because as the polymer prices go weaker uh it it 100 it because 62% of the cost of molded furniture is actually 14:00 14 minutes polymer uh so so that is why there we had a a slight decline uh so overall uh you know as I said in the next few 14:08 14 minutes, 8 seconds quarters uh the glassware plant also of course has given us revenue but no profit uh So that of course affects margins temporarily. 14:18 14 minutes, 18 seconds So as I mentioned that you know over the next couple of quarters once we regain our entire revenue from this from steel 14:26 14 minutes, 26 seconds uh and also of course uh as glassware starts contributing to margins uh this margin will return to its normalized level at about 22%. 14:39 14 minutes, 39 seconds uh is there any uh you know guidance number uh would you like to give? 14:45 14 minutes, 45 seconds So over the next two quarters uh you know as I as I mentioned that over the next two quarters uh profitability will 14:52 14 minutes, 52 seconds be a little uh subdued. Uh of course it will keep getting better as the steelware plant ramps up. uh and uh but 15:02 15 minutes, 2 seconds in H1 H after H1 I think things should improve drastically and we should return to our normal ratios. 15:11 15 minutes, 11 seconds Okay. Uh second questions are related to the cell brand uh for writing and stationary. 15:20 15 minutes, 20 seconds Last uh last time you indicated uh by 28 or so 350 odd cr of a revenue you can 15:27 15 minutes, 27 seconds generate. So uh like how much of the revenue you are expecting for 27 because you guided for some around 500 north of 15:35 15 minutes, 35 seconds 500 cr you are expecting from this segment. 15:39 15 minutes, 39 seconds Correct. So I think uh with put together uh uh you know we will be clocking in good numbers. So upwards of north not 15:47 15 minutes, 47 seconds north not north of 500 crores is a given uh for next year uh in the stationary segment both brands put together. Uh it 15:54 15 minutes, 54 seconds could be it could be of course a lot more. Uh you know we have we've been evaluating of course we've just bought you know just bought the brand about two 16:03 16 minutes, 3 seconds months back and uh that is why you'll start seeing revenues from this quarter. 16:08 16 minutes, 8 seconds Uh having said that you are right that the revenues were about 300 upward of 300 crores per cell but there were a lot 16:16 16 minutes, 16 seconds of loss making products in that particular uh uh you know portfolio. So we will we have rationalized or we will be continuing to rationalize some of 16:24 16 minutes, 24 seconds those products which might uh reduce the overall revenue but of course even after that the revenues will be you know 16:32 16 minutes, 32 seconds amazing in terms of uh the writing instruments and we should be upwards of way upwards of 500 crores. 16:40 16 minutes, 40 seconds Okay. Uh second question uh third questions are related to the GT because this quarter we had seen the general 16:47 16 minutes, 47 seconds trade has been down. Is it only because of a steel product? 16:52 16 minutes, 52 seconds So yes, GT has been down majorly due to steel products. Uh that is the main reason. Uh and also if you if you see 17:00 17 minutes the Diwali impact also was there because last quarter it was a very good growth in the consumer segment in GT also and 17:09 17 minutes, 9 seconds GT seems to have uh softened a little bit uh in this quarter. So both impact steel of course is a big impact and also 17:17 17 minutes, 17 seconds marginally due to the uh you know Diwali being prepared. 17:23 17 minutes, 23 seconds Okay. And also could I just clarify this steel has also impacted our in-house manufacturing because that number has significantly down to 63% 17:32 17 minutes, 32 seconds uh compared to 77 75% we used to give in this quarter. 17:38 17 minutes, 38 seconds No sorry I didn't get your question. So the in-house manufacturing contribution has gone down for this quarter to nearly 17:46 17 minutes, 46 seconds 63% odd. So is that because of a steel availability is a low and uh uh that's impacted our revenue and that is 17:54 17 minutes, 54 seconds it has not gone down. I I don't know where you're getting that number from because it's about 72% uh is in house manufacturing and it will only go up as 18:02 18 minutes, 2 seconds we uh ram as we start producing more of the steel there. 18:07 18 minutes, 7 seconds No. So actually I calculated from your 9 month number is 73% and first half is 18:13 18 minutes, 13 seconds 78%. So if I calculate for the Q3 that is a lower number. So that's why I had asked. 18:22 18 minutes, 22 seconds No actually that that doesn't match with my number but of course we we'll discuss this later. Uh you know we can call get on a call and discuss it. 18:30 18 minutes, 30 seconds Thank you sir and all the best. All the best. Thank you. 18:37 18 minutes, 37 seconds Thank you. Before we take the next question, a reminder to all the participants that you may press star N1 to ask a question. 18:47 18 minutes, 47 seconds The next question is from the line of Bhavian Rupani from Invest Tech. Please go ahead. 18:54 18 minutes, 54 seconds Yeah. Hi sir, thanks for the opportunity. Uh so first on Opelware, sir, can you spell out what is the utilization levels for our Opelware plan right now? 19:04 19 minutes, 4 seconds So Opelare is almost we at about 85% of utilization at this uh point of time and any incremental expansion plans over 19:13 19 minutes, 13 seconds here given that we are running at almost peak utilizations. 19:17 19 minutes, 17 seconds No currently uh at this point of time we are not uh we need to first exhaust uh capacities to about 100%. Uh also also there is new competition in the market. 19:27 19 minutes, 27 seconds So we're treading cautiously on that side. But yes, of course uh you know as we near complete exhaustion of capacity 19:34 19 minutes, 34 seconds uh you know we will we will start thinking about it in the next few months and uh so do we have any brownfield 19:42 19 minutes, 42 seconds optionality at our existing plant in case we look to expand the facility? 19:48 19 minutes, 48 seconds No, brownfield. No, we are at as in in glass and opel it's it's a little difficult uh to expand uh you know in 19:56 19 minutes, 56 seconds terms of uh brownfield. So it'll have to be a completely infield project uh when it comes to opal. 20:04 20 minutes, 4 seconds All right. And one more question on Opel where sir any uh so what is our realigning timelines over here and kix for realigning uh for a couple of years from now? 20:13 20 minutes, 13 seconds For opalware. 20:15 20 minutes, 15 seconds Yes sir. Opelware we haven't thought about any more capex at this point of time uh because as I as I mentioned that 20:24 20 minutes, 24 seconds uh because of there is new capacities that have been added in the market uh so we'll have to wait and watch a little bit but if we do uh you know there is 20:32 20 minutes, 32 seconds there is going to be a a capex of about 110 crores is what we'll look at if we if we are going to be ever doing it this 20:41 20 minutes, 41 seconds year right sir and uh I was asking about the realigning CPEX uh so what I'm assuming 20:48 20 minutes, 48 seconds is post two or 3 years we need realigning of our lines of blast furnaces right so no no no so that is just maintenance kex 20:58 20 minutes, 58 seconds you're talking about it's not realigning it is just maintenance kex is always considered and um basically that is not 21:06 21 minutes, 6 seconds much that is about uh 10 15 crs a year uh which is the max which is also maintenance for most of our lines 21:15 21 minutes, 15 seconds all right Uh and one more question on Opel vessa. So basis are channel checks what we understand is imports in this category has increased over past few 21:24 21 minutes, 24 seconds years and despite uh regulatory covers being present right. So how is industry working on it and any measures industry has taken to c this imports? 21:33 21 minutes, 33 seconds No I think uh see there is a actual anti-dumping duty that still exists uh on opalware and uh overall the the rise in uh imports is not very significant. 21:45 21 minutes, 45 seconds uh it it is very very limited and it it is a it is an inferior product that is being uh imported. So I don't think 21:53 21 minutes, 53 seconds we've had any uh real uh you know reasons to worry there as an industry as well. 22:02 22 minutes, 2 seconds Got it. So one more question sorry one more question on Opalware. uh uh just wanted your thought on this uh given competitive intensity is increasing in 22:11 22 minutes, 11 seconds the space uh what would be our preference volume or margins see since we are already at about 85% uh 22:20 22 minutes, 20 seconds capacity utilization I think we should be we ideally anyone should be focusing on uh profitability at this point of 22:28 22 minutes, 28 seconds time until you know the new capacity gets uh you know completely penetrated in the market uh so I think that is our priority priority now uh cost reduction 22:37 22 minutes, 37 seconds and optimization will be our priority going forward so that our margins are maintained because revenue potential growth is only going to be the 15% capacity that we have left. 22:50 22 minutes, 50 seconds All right. Uh so a couple of questions on glassware. So first uh glassware on on glassware you mentioned that uh uh 22:58 22 minutes, 58 seconds utilizations will remain at 60% over next two quarters. So just trying to understand is it demand as software or any technical issues at our plant. 23:07 23 minutes, 7 seconds No, so it's not anything technical. Uh the idea is that you know the revenues are ramping up but of course it takes a 23:14 23 minutes, 14 seconds little time for revenues to keep going up. Every of course months on month we are seeing a growth and in revenue of the of glassware. Uh but since it will 23:23 23 minutes, 23 seconds take a little time we the of course the potential can be you know a lot more as I said from this plant. uh but until 23:31 23 minutes, 31 seconds that happens uh you know we will have to keep the utilization levels at about 60%. And also there is stock that has 23:38 23 minutes, 38 seconds built up which we will also be uh you know um which will also be we'll also be selling uh in the next couple of 23:45 23 minutes, 45 seconds quarters post that uh we will you know uh increase the utilization. So there is no technical challenge uh it is the 23:53 23 minutes, 53 seconds product side uh you know is completely set. 23:58 23 minutes, 58 seconds Perfect. Got it sir. I have few more questions. I'll join back with you. Thank you. 24:06 24 minutes, 6 seconds Thank you. The next question is from the line of Natik from NV Alpha 1. Please go ahead. 24:13 24 minutes, 13 seconds Uh hi sir. Uh thanks for taking my question. So my first question is uh you know you mentioned that uh there was some supply challenges in steel there. 24:20 24 minutes, 20 seconds So uh this was primarily because of the standards coming in and uh our facility yet to be yet to come online. Is that the sole reason for the sale? 24:30 24 minutes, 30 seconds Yes. So BIS had come in about last January. We had built a lot of stocks. So we had about 68 months of uh stocks. 24:37 24 minutes, 37 seconds Uh and up that we had also procured some uh products uh locally through some 24:44 24 minutes, 44 seconds OEMs. uh but you know the kind of product line that we had before uh when we were importing uh was pretty large 24:52 24 minutes, 52 seconds and uh we of course you know are unable to have all of those products today. uh but uh yes as as we are going to ramp up 25:01 25 minutes, 1 second our production these are all products that are going to come back uh you know uh and uh that that was basically the 25:08 25 minutes, 8 seconds reason the main reason the B is of course the main reason that we had this situation right I'm sorry if this was uh not the 25:17 25 minutes, 17 seconds case you know we didn't talk and see where revenue would have been flat what what's the growth you would have seen 25:25 25 minutes, 25 seconds so in the consumer segment we would have seen a 12% growth uh year on year if if it was even the same uh as last year if 25:34 25 minutes, 34 seconds uh revenues of steel would have stayed the same right uh and so what about the capacity that now we are putting in stream what 25:42 25 minutes, 42 seconds is this capacity that we are bringing in so we bringing in about uh currently we have about 8 to 10 lines uh you know we 25:50 25 minutes, 50 seconds have two lines operational uh this has revenue potential of up to uh you know upwards of about uh 300 300 odds uh for 25:59 25 minutes, 59 seconds the moment and it'll we can just keep adding lines uh we have the facilities so it'll just be a brownfield expansion post that 26:07 26 minutes, 7 seconds got just one clarification he did on on the deal structure of uh you know the servo pens uh brand that we have gotten 26:15 26 minutes, 15 seconds back you know we would be booking say 200 to 300 crores of revenue in 3 by 26 on brands itself uh we'll be getting the 26:24 26 minutes, 24 seconds profitability also of the sale you But uh we won't be paying anything. So I'm just not able to wrap my head around the 26:32 26 minutes, 32 seconds deal structure. So if you could just uh you know throw some light on the same. 26:37 26 minutes, 37 seconds So basically uh the brand was bought uh by CPIW which is uh a promoter group uh 26:44 26 minutes, 44 seconds entity uh and all the brand is housed there uh and even the Cello brand has been housed there. So CPIW paid for the 26:52 26 minutes, 52 seconds brand. So it was a it was there were two deals that had happened. one was the brand deal and one was the asset deal. 26:57 26 minutes, 57 seconds So we were only involved in the brand deal. Uh you know the assets were bought by a separate company altogether. Uh so 27:04 27 minutes, 4 seconds that is why there is no impact. Uh because we already had our current facilities uh had enough capacities to 27:11 27 minutes, 11 seconds produce the goods that Cello was uh you know selling. So we what we basically only procured and we will be procuring 27:20 27 minutes, 20 seconds there will be some capex on that as we go along is the molds right and we will need some more machines uh you know in 27:28 27 minutes, 28 seconds the in in the next couple of quarters which I had already guided last time that there would be a capex of about 50 to 60 crores in this category in the 27:36 27 minutes, 36 seconds next one year one full year so I think uh you know that's that's how the brand deal was structured and that's why 27:43 27 minutes, 43 seconds you're not seeing any uh you know any payment out for this particular thing? 27:49 27 minutes, 49 seconds Sir, but what's in for the asset owners uh for this? I mean, I believe we would be producing and running the assets and selling and booking the revenue, right, 27:57 27 minutes, 57 seconds for the brand. So, what's in for the asset owners? Why would they buy? I mean, no, the asset owners bought the asset. 28:04 28 minutes, 4 seconds They bought the land, building, everything. They will sell at a at a better price. Maybe that is why they invested. 28:10 28 minutes, 10 seconds Okay. They'll sell at a markup. 28:13 28 minutes, 13 seconds For them, it's a sale. they they don't want to hold those they they've got assets and they want to sell assets. So it's it's a asset sale kind of a uh deal for them. 28:24 28 minutes, 24 seconds Correct. So also you mentioned uh you know the the margins and consumers were sort of uh flattish down due to uh 28:31 28 minutes, 31 seconds steelware revenues not coming in. So I don't understand the plan just came in. 28:36 28 minutes, 36 seconds So how did that affect uh our profitability in consumer? 28:41 28 minutes, 41 seconds No. So two things steelware did not give the revenue so there was a decline in revenue uh which was a big revenue decline. Uh so that is why the 28:49 28 minutes, 49 seconds profitability was not reflected. Uh secondly uh though we grew a lot of the revenue growth came from glassware which 28:58 28 minutes, 58 seconds is not profitable at this point of time right it is only breaking even. So that is the reason why there was a temporary 29:05 29 minutes, 5 seconds uh decline in uh profitability and uh with steel coming back because steel uh has just started the production has just 29:12 29 minutes, 12 seconds started. Uh so uh and also there were a lot of expenses that were uh uh done for the plant basically without any revenue 29:22 29 minutes, 22 seconds generation right and also the sales team is also in place but the sales did not happen as much. So basically that is why 29:30 29 minutes, 30 seconds the expenses increased overall quarter for this quarter and that is why you are seeing a you know a slight decline there. 29:38 29 minutes, 38 seconds Got it. God is so very clear. Thank you so much. 29:44 29 minutes, 44 seconds Thank you ladies and gentlemen. A reminder to all the participants if you wish to ask a question please press star N1. 29:53 29 minutes, 53 seconds The next question is from the line of Sukrit D Patil from Eyesight Finate Private Limited. Please go ahead. Uh good morning to the team. My name is 30:02 30 minutes, 2 seconds Sukur Patil. Uh I have two questions. My first question to Mr. Rat is uh beyond the uh growth outlook. Uh how will Cello 30:10 30 minutes, 10 seconds World manage risk and uncertainty across its core categories uh mainly writing instruments, stationary, furniture and 30:19 30 minutes, 19 seconds kitchen wear. What strategic choices will help uh the company stay uh in 30:26 30 minutes, 26 seconds strength if the demand or input cost uh keep on fluctuating? That's the first question. I'll ask the second question after this. Thank you. 30:34 30 minutes, 34 seconds So uh when it come to comes to input cost uh you know they don't uh rise and fall very drastically unless we have 30:42 30 minutes, 42 seconds situations like COVID where it changes for everyone. uh and because we are a consumerf facing uh brand uh you know uh 30:50 30 minutes, 50 seconds some of those input costs are uh you know possible uh to the consumer uh and I think u overall uh we've not had such 30:59 30 minutes, 59 seconds situations uh the risk is very limited when it comes to you know input costs uh and if it happens it happens for 31:07 31 minutes, 7 seconds everyone and I think uh that is the reason that uh you know other than that I you know there are not uh many other 31:15 31 minutes, 15 seconds risks that would completely you know you know have a very major impact. U I I don't 31:23 31 minutes, 23 seconds know if if you're kind of referring to any other risk that uh you know so if if there is anything specific I could 31:30 31 minutes, 30 seconds answer it uh in that fashion. No in general I'm just asking not not anything particularly uh oriented just in in 31:38 31 minutes, 38 seconds general any risks that you foresee in the coming days just wanted to understand that I don't see any uh major risks uh in the 31:46 31 minutes, 46 seconds coming u you know quarters of course you know this is something I can't foresee if there is something that happens like 31:54 31 minutes, 54 seconds a BIS kind of a situation where there is regulatory uh you know problem then no one no one can foresee that so I think 32:03 32 minutes, 3 seconds whatever we can foresee of course we we we can plan for my second question to Mr. Parogia is uh along the similar lines beyond uh the 32:12 32 minutes, 12 seconds margin guidance. How will you manage any financial risk or uncertainty in areas like raw material cost, working capital 32:21 32 minutes, 21 seconds and capital allocation? What guard raise will ensure earning quality uh stays stable uh you know even in these 32:30 32 minutes, 30 seconds volatile conditions for understand and point of view on this? Thank you. In the past which we have seen actually our 32:37 32 minutes, 37 seconds profit margin is more or less remain in a range bound actually and the reason being our 32:44 32 minutes, 44 seconds as said we have the product mix actually and uh with the product mix we get the advantage of higher with our PL and in 32:54 32 minutes, 54 seconds the future even we don't see any such risk actually which you are saying and our best thing is actually our new 33:01 33 minutes, 1 second product as you see our new product goes coming actually and this that gives us the mis advantage. 33:09 33 minutes, 9 seconds Thank you and best wishes. Thank you. 33:15 33 minutes, 15 seconds Thank you. The next question is from the line of Anerut from ICICA Securities Limited. Please go ahead. 33:23 33 minutes, 23 seconds Yeah. Uh thanks uh uh so uh uh sir generally whenever the uh commodity 33:31 33 minutes, 31 seconds prices move up uh and down a bit INR deprecation is also there uh and uh the rules related to BIS are also there. So 33:40 33 minutes, 40 seconds historically it has been observed that in such cases the larger players like cell uh uh end up gaining good amount of 33:47 33 minutes, 47 seconds market share. So if you can uh share what has been the market share journey uh for the steel products um and how do 33:55 33 minutes, 55 seconds you see the market share let's say changing over next uh uh one two years that is question number one and then uh 34:03 34 minutes, 3 seconds question number two u uh in terms of uh while there has been a relatively softer growth in the market itself have you 34:12 34 minutes, 12 seconds seen any impact on the trade spends especially in the molded furniture segment etc. So, so how should we uh 34:20 34 minutes, 20 seconds read in terms of the uh trade spends, inventory levels in the trade, etc. any material changes happen to that due to 34:27 34 minutes, 27 seconds slowdown in the market growth? Yeah, thanks. 34:31 34 minutes, 31 seconds And uh you are right that you know overall as we ramp up our production and you know before there were a lot of importers, people could import different 34:40 34 minutes, 40 seconds items. Uh but you know and that will help overall in the long term as we scale up our production. uh to gain some 34:48 34 minutes, 48 seconds market share. Uh but also you know one thing we should understand is that uh you know when we were importing uh we were importing from 20 30 different 34:56 34 minutes, 56 seconds companies in in uh you know in uh in the world and uh the point was that the kind 35:04 35 minutes, 4 seconds of diversified range that we could have we cannot have that anymore and no one can have that anymore. uh so I think uh that is one reason that uh you know we 35:14 35 minutes, 14 seconds still remain uh conf of course we remain confident that you know market share gains will happen because no one now can 35:21 35 minutes, 21 seconds go and import say a container uh but having said that the range has reduced and to build that range will of course 35:28 35 minutes, 28 seconds take some time and over the years we will be able to do that uh as we scale up our revenues but yes possible 100% uh 35:36 35 minutes, 36 seconds this this this should come in and kick in in the next year. Um from on in terms of your second question, I think there 35:45 35 minutes, 45 seconds is no meaningful uh change in the channel uh stock. I think it remains relatively at the same 35:52 35 minutes, 52 seconds levels. Uh you know the primary growth of course has softened uh you know for everyone but at the same time uh the 36:00 36 minutes secondaries have been at at par. So I wouldn't say that there is a meaningful increase in uh channel stock. 36:11 36 minutes, 11 seconds Okay. Sure sir. Uh second uh just from a strategy perspective uh co operates the business through multiple subsidiaries 36:20 36 minutes, 20 seconds will it be u easier in terms of operations as well as uh um uh from the trade perspective also if all 36:28 36 minutes, 28 seconds subsidiaries get merged because then uh there can be seamless flow of capital from one segment to other and even uh 36:36 36 minutes, 36 seconds from trade perspective there will be single billing and uh single accounting overall audit all all the expenses can 36:44 36 minutes, 44 seconds also uh slightly come down. So so uh is there any thought process on that or uh uh the current system of multiple 36:53 36 minutes, 53 seconds subsidiaries is actually uh uh will continue and is more beneficial. Yeah, that's it from my side. 36:59 36 minutes, 59 seconds So I think for us multiple subsidiaries have been the way we have been working. 37:05 37 minutes, 5 seconds That's how we are structured. uh because uh we don't want to put the expenses or burden of one company onto the other uh 37:13 37 minutes, 13 seconds and every uh unit is basically a P&L for us uh and is and is basically uh you 37:20 37 minutes, 20 seconds know one person basically handles it uh so basic uh so overall you know while things can get easier uh it also kind of 37:29 37 minutes, 29 seconds uh you know kind of dilutes uh you know the P&L of each and every unit uh and focus on uh you know unit economics kind 37:38 37 minutes, 38 seconds of goes away and that is the reason why you know we have been structured in the fashion we have structured 37:45 37 minutes, 45 seconds from from a billing point of view actually is has most of the billing and it is kind of one point for most of our 37:53 37 minutes, 53 seconds uh customers uh except for the glassware side where which is the second billing point. So I think I think that is not really a a major concern or it will not 38:02 38 minutes, 2 seconds really reduce any uh further cost. Yeah, it can just make it easier. That's that's the only thing. Uh but other than 38:10 38 minutes, 10 seconds that, I think uh you know we are happy with the the current structure and would like to operate it this way. 38:18 38 minutes, 18 seconds Okay. Sure. This is uh very helpful. Many thanks. Thank you. 38:25 38 minutes, 25 seconds Thank you. A reminder to all the participants that you may press star N1 to ask a question. The next question is from the line of Karan Beria from AMSC. 38:38 38 minutes, 38 seconds Please go ahead. Hi, good morning. Am I audible? Yes. Yes. 38:44 38 minutes, 44 seconds Yes. Uh uh hi. I wanted to understand any pricing actions you know taken across the portfolio or you know how do 38:51 38 minutes, 51 seconds you see pricing strategies you know in the medium term? 38:56 38 minutes, 56 seconds So I think nothing uh so so no pricing strategy as such uh you know in an environment like this uh we're not as you know as I' guided even in the first 39:05 39 minutes, 5 seconds quarter that uh some of the expenses had increased uh but we were unable to pass on so there is no real and but now there 39:13 39 minutes, 13 seconds is no such pressures also that no new pressures I would suggest um that uh will lead to any pricing corrections 39:21 39 minutes, 21 seconds rather we are actually working more on uh the you know the manufacturing ing side where we can you know cut cost and optimize. Uh I think that is the 39:29 39 minutes, 29 seconds strategy going forward at least for this uh at least for a few quarters. 39:35 39 minutes, 35 seconds Right. Right. And on the classware side I think uh we slightly uh know behind our targets you know fourth quarter 39:42 39 minutes, 42 seconds earlier we were estimating 80% capacity utilization and I think no profitability from this vertical will only start once we cross 75%. 39:52 39 minutes, 52 seconds So, so how do we see glassware as a portfolio? 39:57 39 minutes, 57 seconds Glassware is a is a for the company is a very long-term bet. Uh, you know, once we establish ourselves in this uh 40:04 40 minutes, 4 seconds particular uh product line, uh, you know, we have a it's a very it's a tough product line, right, for anyone else to 40:12 40 minutes, 12 seconds come into the entry barrier is extremely high. uh the kind of glass they're producing is is I would say today much 40:18 40 minutes, 18 seconds better than uh you know a lot of countries have been able to do uh so it's a very long-term bet for us. Uh we 40:26 40 minutes, 26 seconds are not worried about current profitability. We are more uh you know wanting to first gain the market. Uh you 40:34 40 minutes, 34 seconds know as as I mentioned there has been a lot of Chinese dumping uh and this category is going to evolve in the next few months. Already we are seeing uh you 40:42 40 minutes, 42 seconds know imports uh getting majorly impacted because of our entry uh and as the channel stock also goes down of imports 40:51 40 minutes, 51 seconds uh we see our revenue keep going up and we are we are actually seeing that uh so uh it's just that you know Glasser is a 40:59 40 minutes, 59 seconds continuous plant uh we cannot stop it for for 10 years uh so that is why we have to trade a little cautiously on the 41:06 41 minutes, 6 seconds inventory side and that is why we are not intentionally ally utilizing more than this for the for for for the time 41:14 41 minutes, 14 seconds being uh once profitability kicks in once we cross 75 80% uh you know the the upside is very huge uh and I think we'll 41:23 41 minutes, 23 seconds have to be a little patient here uh and uh you know the long-term um you know is is is outstanding for this category. 41:32 41 minutes, 32 seconds Noted, noted. Thanks, thanks for this. 41:34 41 minutes, 34 seconds And uh on the writing instrument side, you know, one last question from you know, how is the product portfolio uh 41:41 41 minutes, 41 seconds for PIC cell because I I I I believe for us we more on the writing side uh and slightly slightly lower on the other 41:49 41 minutes, 49 seconds stationary part and we we were ideally wanting to expand that portfolio as well. So so BIC how is the split between writing and stationary? 41:59 41 minutes, 59 seconds So BIC cell is actually structured exactly like us. So stationary is a very small plus for them as well which which actually is a fantastic and a very big 42:07 42 minutes, 7 seconds opportunity for us now going forward by adding these products into sell uh which 42:14 42 minutes, 14 seconds is which has a much better brand equity uh when it comes to stationary. So I think uh yeah that way it's it's a 42:22 42 minutes, 22 seconds fantastic opportunity and uh you know it opens up a lot of doors right because we did launch a few 42:29 42 minutes, 29 seconds station products like markers crayons or boxes mechanical pencils. So how is the ramp up there? How is the market reacting uh to our 16 kind of 42:38 42 minutes, 38 seconds I think I think while we had introduced all of these uh it had been uh not a very very big ramp up there uh with the 42:45 42 minutes, 45 seconds onomax brand. uh what we are now going to start doing is uh you know have those similar kind of products in uh the cello 42:53 42 minutes, 53 seconds brand and I think uh with the cello brand uh you know the scale up will be a lot faster right 43:01 43 minutes, 1 second and on capex 150 crores for this year and 75 for next year or anything incremental could be seen in so maintenance capex is going to be 43:10 43 minutes, 10 seconds at about 75 odd crores 75 to 100 crores uh apart from that there will be slight 43:16 43 minutes, 16 seconds capex in uh in the writing instruments right so correct to assume 150 for for both the years 26 27 43:24 43 minutes, 24 seconds maximum yes maximum that is the upper limit yeah thanks yeah I think that's 43:33 43 minutes, 33 seconds thank you anyone who wishes to ask a question may press star and one 43:42 43 minutes, 42 seconds question is from the line of deep jetti from mana finance Please go ahead. 43:48 43 minutes, 48 seconds Hi Gor, congratulations on um acquisition of Cello brand. Uh wanted a question wanted to answer about uh you 43:56 43 minutes, 56 seconds know how what do you think will be the growth driver and will it be fair to assume that uh uh writing instruments will be the growth driver for the next two years. 44:05 44 minutes, 5 seconds So I think for us growth drivers are two uh glassware and writing instruments uh both are uh you know glassware of course 44:13 44 minutes, 13 seconds uh the potential is very huge and we will try to reach about 80% odd capacity by the end of the next year uh and in 44:21 44 minutes, 21 seconds writing instruments of course with the with the with the acquisition of cello uh you know we we are now looking at at 44:28 44 minutes, 28 seconds fantastic numbers for this year and of course as as I mentioned before it opens up a lot of doors for a lot of other stationary items. So yeah these these 44:37 44 minutes, 37 seconds two pillars are going to be uh very important for us uh in the next year right and uh uh since we are already 44:46 44 minutes, 46 seconds planning capeex you mentioned that we already planning capex in the rising instruments uh vis wouldn't wouldn't had it have been better that if we would 44:53 44 minutes, 53 seconds have uh acquired the assets of uh big also big cell that time and uh instead 45:00 45 minutes of you know having additional capex I mean if you can just give a comparison that what was the uh uh you know what was the advantage of 45:08 45 minutes, 8 seconds doing a fresh capeex rather than not acquiring the assets? 45:13 45 minutes, 13 seconds A lot of this capeex is actually acquiring some of those assets of big cell which is some of the molds and machines. What we did not require is the 45:21 45 minutes, 21 seconds land and buildings uh which was the bigger asset right the others are smaller assets and a lot of their machinery was very very old. uh so I 45:31 45 minutes, 31 seconds think uh we we did not see any uh you know advantage in kind of acquiring them because they would run very 45:38 45 minutes, 38 seconds inefficiently uh so that is why some of that capex is going to be in the newer machines and newer modes 45:45 45 minutes, 45 seconds right great uh just the last question about the vimimplast uh merger since all the regulatory approvals are 45:53 45 minutes, 53 seconds almost done when do you see that this merger will finally happen uh if you can give a timeline to it or date to 46:00 46 minutes See uh in the month of F only final hearings uh is there is around the last week of fair and the day there after 46:09 46 minutes, 9 seconds once we get the approval then everything is set then uh we will in the process of merging the thing I mean already as you 46:16 46 minutes, 16 seconds know up date is uh 1st April 2025 so definitely it will be from that date 46:23 46 minutes, 23 seconds itself but maybe around 2 three months time we will uh see all that get So by so by first quarter in the first 46:31 46 minutes, 31 seconds quarter of FI27 we should be done with this. Yes. Yes. Yes. For sure. Great. Great. All the very best. 46:39 46 minutes, 39 seconds Thank you. 46:43 46 minutes, 43 seconds Thank you. Participants who wish to ask a question may press star N1 at this time. The next question is from the line 46:51 46 minutes, 51 seconds of Vashnavi Gurung from Craving Alpha Wealth Fund. Please go ahead. 46:57 46 minutes, 57 seconds Yeah. Hi. Uh thank you for the opportunity. Am I audible? Yes. Yes. Absolutely. 47:04 47 minutes, 4 seconds Uh sir, my first question is on the steelware segment if you can help us with what is the total contribution of steelware to the consolidated revenue 47:13 47 minutes, 13 seconds and I wanted to understand will the ramp up of the new plan still impact the revenue and margins or will 47:21 47 minutes, 21 seconds the third party sourcing will continue having an impact. just wanted to have a future outlook. 47:29 47 minutes, 29 seconds So I think uh we do not give out numbers separately for the steelware. Uh uh basically of course the steelware as I 47:38 47 minutes, 38 seconds mentioned is a is a is a a significant component of our revenues in the consumer segment uh and has taken an 47:45 47 minutes, 45 seconds impact in this quarter. uh having going forward I think of course uh as we ramp up our production and reduce our OEM 47:53 47 minutes, 53 seconds supplies uh we should see a meaningful uh you know growth in revenue and margins uh so I think I think at least 48:01 48 minutes, 1 second we should return back or actually better the margin that we had uh before while we were uh trading 48:10 48 minutes, 10 seconds we uh expect this impact to happen uh uh this is the next two three quarters Or as we expect 48:18 48 minutes, 18 seconds the impact will be in phases the impact as we scale up uh you know over the next two quarters the impact will of course 48:26 48 minutes, 26 seconds the full impact will be uh you know only in H2 of next year but you will start seeing some impact over the next two quarters. 48:36 48 minutes, 36 seconds So we may see some subdivided growth in the next two quarters too from this segment. 48:40 48 minutes, 40 seconds We might not see growth because uh you know a lot of the product lines we are out of stock. Uh so we will be just 48:48 48 minutes, 48 seconds fulfilling those uh in terms of our revenue. We will only be fulfilling uh we might not reach complete revenue 48:54 48 minutes, 54 seconds potential until you know the end of the first half of next year. 49:02 49 minutes, 2 seconds Okay sir. and uh and I just wanted to have an outlook on the molded furniture segment. 49:09 49 minutes, 9 seconds Will this uh current scenario of lower prices have an impact in the coming quarters too? 49:16 49 minutes, 16 seconds So I think if the uh polymer prices continue to be weak uh you know there will be a slight impact uh because as 49:23 49 minutes, 23 seconds you know it is completely directly proportional to polymer prices uh and uh any any uh decrease kind of decreases revenue any increase increases revenue. 49:33 49 minutes, 33 seconds So I think this will continue to be a trend in whimlast and uh you know that is why we have always guided for a a low singledigit number growth in uh the 49:43 49 minutes, 43 seconds whimlastite. Professor do we not have any hedge in place to mitigate this risk? 49:52 49 minutes, 52 seconds No, there is no mitigation that is possible here because uh you know that polymer crisis is not something that I can control. 50:02 50 minutes, 2 seconds Okay, thank you for taking your question. I'm going back. Thank you. 50:09 50 minutes, 9 seconds Thank you. 50:12 50 minutes, 12 seconds The next question is from the line of Akil Parik from BNK securities. Please go ahead. Hi, thanks for the opportunity. Uh my first 50:21 50 minutes, 21 seconds question is based on the commentaries now we have given across the product categories uh and given the software base we have uh uh in FI26 50:31 50 minutes, 31 seconds would it be fair to assume uh that uh our growth rate in FI27 can be between 15 to 18% and the margin so far going 50:40 50 minutes, 40 seconds back to 23% plus that's my first question. 50:44 50 minutes, 44 seconds So I think uh basically you know because of couple of more quarters we will take to come back in terms of our steelware 50:53 50 minutes, 53 seconds uh but overall the first half could be a little more muted at about 8 to 10% but post that uh you will see significant uh 51:02 51 minutes, 2 seconds growth uh in terms of uh uh you know revenue and margins coming back to about uh 22%. our first priority is to you 51:11 51 minutes, 11 seconds know have margins back which will happen in you know over the next couple of quarters uh and post that uh you know 51:18 51 minutes, 18 seconds you'll see more growth. So I as as the quarters go by I will I will keep guiding uh currently what I'm guiding is for for the next couple of quarters is 51:27 51 minutes, 27 seconds what I can foresee is about a 8 to 10% growth uh given the fact that steelware will still be under pressure a little 51:34 51 minutes, 34 seconds bit. Sure. Sure. This is helpful. And just a second question on the uh Opalware and the steel right at the peak 51:42 51 minutes, 42 seconds inclination rate, what kind of sales turnover both these categories can do? 51:48 51 minutes, 48 seconds So opalware add it peak can do about 400 to 4 10 crores of revenue at its peak. 51:57 51 minutes, 57 seconds Okay. And more steel uh steel uh current capacity will go up to about 300 crores. uh with additional 52:05 52 minutes, 5 seconds KEX which is not a lot uh we can keep adding machines because the facility is completely built uh the the capex post 52:13 52 minutes, 13 seconds that will not be much even if you want to add capacity okay okay and so if I listed the margin 52:22 52 minutes, 22 seconds profile of the steel category is it uh is it in line to the open or it it is below open air category 52:31 52 minutes, 31 seconds it is it is in line slightly lower always. It has been uh since we were trading. Uh as we scale up our production, this could improve uh you 52:39 52 minutes, 39 seconds know, but currently it will stay a little lower as it has always been uh than Opal. 52:48 52 minutes, 48 seconds Okay. Sure. This is Thanks a 52:58 52 minutes, 58 seconds ladies and gentlemen. We will take that as the last question for today. I now hand the conference over to the management for closing comments. 53:07 53 minutes, 7 seconds Great. Uh thank you everyone uh for being on the call. uh you know I think I think exciting times for us ahead uh 53:15 53 minutes, 15 seconds with two fantastic categories stationary and glassware uh which is going to ramp up uh in the next uh you know few 53:22 53 minutes, 22 seconds quarters and uh you know we look forward uh to the next few quarters and uh you know we'll hopefully we'll have a we'll 53:29 53 minutes, 29 seconds have a much better uh year uh this coming year right thank you so much thanks again 53:39 53 minutes, 39 seconds thank you very much on behalf of ICICI security is limited. That concludes this conference.