Century Enka Limited — Q3 FY26

Century Enka Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=bS711t5O9tU Published: 3 months ago

0:00 Ladies and gentlemen, good day and welcome to the Century ENA Limited Q2 and H1 FY26 earnings conference call 0:08 8 seconds hosted by Ventura Securities Limited. As a reminder, all participant lines will be in the lesson on demo and there'll be 0:16 16 seconds an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an 0:25 25 seconds operator by pressing star and then zero on your touchtone phone. 0:30 30 seconds Please note that this conference is being recorded. Before we begin, I would like to point out this conference call 0:37 37 seconds may contain forward-looking statements about the company which are based on the belief, opinions and expectation of the 0:44 44 seconds company as and date of this call. These statements do not guarantee the future performance of the company and it may 0:52 52 seconds involve risk and uncertainties that are difficult to predict. I would now like to hand the conference over to Tushad from Venura Securities. Thank you and over to you sir. 1:02 1 minute, 2 seconds Thank you. Good day ladies and gentlemen. On behalf of Ventura Securities, I welcome you all to Century 1:08 1 minute, 8 seconds Encal Limited Q2 and H1 FI26 earnings conference call. The company is today represented by Mr. Suresh Sudani, 1:17 1 minute, 17 seconds managing director and Mr. Yogesha, chief financial officer. I would now like to hand over the call to Mr. Surani for his 1:25 1 minute, 25 seconds opening remarks. Thank you and over to you sir. 1:29 1 minute, 29 seconds Good morning everyone and welcome to our earnings conference call for the second quarter and first half of financial year 1:36 1 minute, 36 seconds 2026. I would like to thank our host Ventura Securities for hosting this call. Now let me brief you on the operational highlights for the second quarter FI26. 1:47 1 minute, 47 seconds During the quarter, revenue declined compared to the corresponding period in the previous financial year. In the tire cod fabric segment, volumes continue to 1:56 1 minute, 56 seconds remain impacted due to subdued demand and high imports from China. Though we though we did witness some improvements compared to previous quarter margins 2:05 2 minutes, 5 seconds also remained under pressure on account of these lowcost imports. However, with the recent GST reductions on tires and 2:13 2 minutes, 13 seconds improving outlook for the auto industry, we are seeing early signs of recovery in tire c demand. 2:20 2 minutes, 20 seconds We expect the second half of the year to be better supported by festive season and a favorable monsoon which should 2:28 2 minutes, 28 seconds boost rural and farm incomes. That said, continuing geopolitical and trade tensions along with tariff related 2:35 2 minutes, 35 seconds uncertainties remain a key risk for the value chain. Meanwhile, the approval process for PTCF is progressing well and 2:43 2 minutes, 43 seconds remains on schedule. In the filament segment, sales volume improved sequentially following successful restart for our plant after the fire 2:52 2 minutes, 52 seconds disruption and subsequent revamp. Our recent investments in Madaran and value added products have contributed to better margin realization during the 3:01 3 minutes, 1 second quarter. Our margins on commodity products remained under pressure due to significant increase in low price 3:08 3 minutes, 8 seconds imports from China both yearon-year and sequentially. The industry along with relevant authorities is actively 3:15 3 minutes, 15 seconds pursuing imposition of anti-dumping duties to address the issue of low price dumping from China. 3:23 3 minutes, 23 seconds On the raw material side, capital prices continued to decline to record low during the quarter, though the rate of 3:30 3 minutes, 30 seconds decline has moderated. Our renewable energy initiatives at Burus plant have aided in controlling power cost and 3:37 3 minutes, 37 seconds improving cost efficiency. Additionally, our continuous focus on operational efficiency and process optimization has 3:44 3 minutes, 44 seconds helped offset some of the margin pressures arising from volatile volatile raw material prices. I I now request our 3:52 3 minutes, 52 seconds CFO Mr. Yogesha to brief you on financial performance. 3:57 3 minutes, 57 seconds Thank you and good morning everyone. Let me now brief you on the financial results for the second quarter and first half of the financial year 2026. 4:08 4 minutes, 8 seconds For the quarter under review, the operating revenue stood at rupees 409 crores which declined by almost 24% 4:16 4 minutes, 16 seconds yearonear and increased by 2% quarter on quarter. IITA for the quarter stood at rupees 32 crores which declined by 4:25 4 minutes, 25 seconds around 17% yearonear and increased by 59% quarteron quarter. IITA margin were reported at 7.73%. 4:35 4 minutes, 35 seconds Profit after tax was around rupees 22 crores which increased 4% yearonear and 45% quarter on quarter. The pet margin 4:44 4 minutes, 44 seconds stood at 5.46% for the quarter. For the first half of FI26 operational revenue 4:51 4 minutes, 51 seconds stood at rupees 810 crores declining by 24% yearonear. IITA stood at rupees 52 4:59 4 minutes, 59 seconds crores which declined by around 35% yearon year. Evita margin for the period was 6.37%. 5:07 5 minutes, 7 seconds Net profit was rupees 38 crores down by 17.5% yearonear and part and pack margin stood at 4.65%. 5:19 5 minutes, 19 seconds Total volume for H1 FI26 declined by 14% yearonear to 34992 metric tons. Tire 5:29 5 minutes, 29 seconds code fabric sales for H1 FI26 declined by 32% to rupees 365 cr while flaming 5:37 5 minutes, 37 seconds yan sales declined by 16% to rupees 404 crores. 5:42 5 minutes, 42 seconds With this we open the floor for questions and answers. 5:48 5 minutes, 48 seconds Thank you sir. Ladies and gentlemen we will now begin the question and answer session. If you have a question please 5:55 5 minutes, 55 seconds press star and one on your telephone keypad. and wait for your turn to ask the question. If you would like to withdraw your request, you may do so by pressing star and one again. 6:15 6 minutes, 15 seconds Dear participants, if you have any questions, please press star and one on your telephone keypad. 6:21 6 minutes, 21 seconds Dear participants, if you have any questions, please press star and one on your telephone keypad. 6:30 6 minutes, 30 seconds The first question comes from Mr. Vipul Kumar from Sumangal Investments. Please go ahead. 6:38 6 minutes, 38 seconds Hi sir, good morning. Thanks for the opportunity. 6:41 6 minutes, 41 seconds So what type of volume we can expect in this quarter and uh what was the capital 6:48 6 minutes, 48 seconds price in last quarter and what is the price uh this means this quarter and what is the outlook and uh had we any 6:58 6 minutes, 58 seconds inventory gain or loss during the uh second quarter. 7:05 7 minutes, 5 seconds So uh while we do not give any uh forward-looking statements in terms of volumes or uh realizations, we do expect 7:13 7 minutes, 13 seconds uh better volumes compared to quarter 2 uh mainly from the reinforcement market 7:20 7 minutes, 20 seconds as already mentioned in the opening comments that uh both GST there has been uh initial uptake in terms of demand and 7:29 7 minutes, 29 seconds we expect that uh once the inventory in the pipeline is uh uh gets normalized uh it should reflect in more production 7:38 7 minutes, 38 seconds both as a tire companies and also the all the raw materials that are required for tire manufacturing. So in those uh in that uh light we expect better 7:47 7 minutes, 47 seconds volumes but as I said there are so many variables particularly the geopolitical tensions and uh the current continuing 7:57 7 minutes, 57 seconds uh uncertainty on US tariffs. So these two will also have an impact on the 8:03 8 minutes, 3 seconds volumes uh for the industry. U as we mentioned also we are pursuing the 8:09 8 minutes, 9 seconds anti-dumping duty on NFI and since the pricing uh and the volume increases significant pricing pressure and the 8:18 8 minutes, 18 seconds volumes. So if any positive developments happen that on that front that could also support the volumes on the NFI 8:27 8 minutes, 27 seconds segment. Uh as far as the uh capital electum is concerned uh it was in the range of about $1,200 for the quarter. 8:38 8 minutes, 38 seconds Uh we expect that it should not go down significantly now because uh it is one of the lowest levels with the underlying 8:46 8 minutes, 46 seconds raw materials which go into manufacturer of capital. But I mean international over supply could be one of the reasons 8:54 8 minutes, 54 seconds that uh the prices could come down further. But as already mentioned the pace has come down. It is not falling at the same pace that it was in Q4 and Q1. 9:06 9 minutes, 6 seconds So hopefully we may be close to the bottom of capitalum cycle unless there is a continuously I mean completely 9:14 9 minutes, 14 seconds different uh pricing scenarios with in the uh crude oil pip uh crude oil value 9:20 9 minutes, 20 seconds chain. uh uh we did not have any significant impact on uh uh the fall in 9:29 9 minutes, 29 seconds our capital electron prices because we had uh narrow down reduced our inventory levels and since our value added 9:36 9 minutes, 36 seconds products have done well uh we did not have to do any significant uh inventory losses uh for the quarter. 9:46 9 minutes, 46 seconds So uh what is the status of uh the anti-dubbling duty plea by the industry 9:54 9 minutes, 54 seconds and the company? So and what uh what is the level of protection the company has asked for? 10:01 10 minutes, 1 second So the level of protection is always uh determined by the ministry by the DGTR. 10:07 10 minutes, 7 seconds We only give the base data and then they do the calculations. uh the in the all 10:13 10 minutes, 13 seconds the uh interactions with the industry players with the producers with the consumers collection of data is that uh 10:22 10 minutes, 22 seconds almost the final stage and uh all the data that was required from the industry side all the players in the industry have already been submitted. The import 10:31 10 minutes, 31 seconds data is already more authentic data is available with the government authorities. So we expect some positive developments in quarter three u hopefully before December. 10:44 10 minutes, 44 seconds So if anti-dumping duty comes then we can expect substantial improvement in the volume. Sir 10:53 10 minutes, 53 seconds our volumes for NTCF are not dependent on anti-dumping duty. The reinforcement this anti-dumping is only on the in 11:02 11 minutes, 2 seconds nylon filament yarn. So more importantly the margins pressure that is there on the commodity products while our ws and 11:11 11 minutes, 11 seconds new investment are able to compete even at low priced imports from China. The commodity products which are mainly 11:19 11 minutes, 19 seconds coming from China at very very low prices are would should help the margin improvements 11:28 11 minutes, 28 seconds particularly uh in certain segments but we would have some improvement in the volumes as well but since the major 11:37 11 minutes, 37 seconds volume impact is on the reinforcement side that we expect should pick up through the improvement in the demand on 11:45 11 minutes, 45 seconds uh from the auto sector and the replacement market. 11:50 11 minutes, 50 seconds So just uh for clarification, are we seeing dumping by Chinese player in both yan and reinforcement market? 11:59 11 minutes, 59 seconds Yes, but more in the yan side. We are seeing more dumping on the and in fact the volumes have doubled in on year on 12:07 12 minutes, 7 seconds year quarter uh on the yan side. that kind of intensity is not there on the uh tire cide because it's more a technical 12:16 12 minutes, 16 seconds product. Yans especially the commodity yans are significantly volume has gone up. 12:22 12 minutes, 22 seconds So industry has asked uh anti-dumping duty on yan not on reinforcement. Is that understanding correct? 12:30 12 minutes, 30 seconds Yes. 12:32 12 minutes, 32 seconds Okay. And uh what is the status of this PTCF approval sir? 12:38 12 minutes, 38 seconds So it is going on. We are we are working with two three tire companies and we expect uh some commercial supplies to start in quarter 4. 12:48 12 minutes, 48 seconds So it will start quarter four right? Yeah. Yes we are hopeful of that as of today. 12:54 12 minutes, 54 seconds And PTCF will have better margin right sir? 12:58 12 minutes, 58 seconds PTC is a reinforcement. So it will have similar reinforcement uh kinds of thing. 13:03 13 minutes, 3 seconds But uh since we have invested in it, it will start giving some positive uh to the top line and the bottom line of the company. 13:13 13 minutes, 13 seconds So uh so PTCF will add to the margin or it will add to the volumes. So both I think it will add to both. 13:24 13 minutes, 24 seconds So what is the capacity of PTC of plant at full capacity? 13:28 13 minutes, 28 seconds Uh we do not give uh product wise breakups because of competitive reasons. 13:33 13 minutes, 33 seconds Uh so uh but it would be about 10% of the industry demand 13:41 13 minutes, 41 seconds 10% of the industry demand current demand. Yes. 13:48 13 minutes, 48 seconds Okay sir. Thank you. I fall back in the queue. Thank you. 13:54 13 minutes, 54 seconds Thank you sir. Dear participants, if you have any questions, please press star and one on your telephone keypad. 14:02 14 minutes, 2 seconds The next question comes from Moit, an individual investor. Please go ahead. 14:08 14 minutes, 8 seconds Uh uh good morning uh sir. Hope I'm audible. Yeah, good morning. 14:14 14 minutes, 14 seconds Uh so just one uh I had a question on the demand shaping up in H2. So like how 14:21 14 minutes, 21 seconds do we see the demand trend shaping? I mean H2O especially after the GST cut and on tire in the festive season impact. 14:29 14 minutes, 29 seconds So we did see some positive uptake uptake uh both at the retail sales as well as uh inventory liquidation at the 14:36 14 minutes, 36 seconds tire companies uh and since the sign there was lot of uh uh waiting for the GST cuts to kick in. So uh that all 14:45 14 minutes, 45 seconds happened only in during the last week of September since uh 22nd it became effective. But we are expecting we I 14:53 14 minutes, 53 seconds mean the initial signs are good even for October and we are hopeful that uh the trends that have come should continue 15:00 15 minutes for uh other months and the quarter following the so we are we are quite positive that GST should help in 15:08 15 minutes, 8 seconds improving the demand for uh particularly for the the tire car segments. 15:14 15 minutes, 14 seconds Okay. And uh what are your expectation for NTFC demand? So recovery now for that uh inventory adjustment tire 15:21 15 minutes, 21 seconds manufacturer is largely complete. So uh what are your expectation on that? 15:26 15 minutes, 26 seconds Actually uh the tire companies are also waiting for clear signals that the demand is sustainable for ramping up the 15:34 15 minutes, 34 seconds their production. So I mean we'll know more from in this month as well as in December whether uh the demand that 15:41 15 minutes, 41 seconds uptick which happened post the GST cut is sustained or not but there is a general 15:48 15 minutes, 48 seconds positivity amongst the value chain that uh this should sustain and lead to better demand. 15:55 15 minutes, 55 seconds Okay. Okay. And uh lastly what was your like uh your IDA margin improved as sub sequentially to 7.7% MQ2. So just a a 16:04 16 minutes, 4 seconds general ling question that what what drove this improvement in H2 mainly is this sustainable in H2? Yeah. 16:12 16 minutes, 12 seconds See the improvement that you see is mainly because the raw metal prices are have fallen but the margins kind of remain at 16:21 16 minutes, 21 seconds a almost similar level whether the capital is at 1200 or 1500. So the top line the denominator value comes down 16:28 16 minutes, 28 seconds that the margin looks better. So uh that is that is the main reason. Yes, the volumes have improved because uh our NFI 16:37 16 minutes, 37 seconds post fire at Bucharted. So we got volumes for that uh in this quarter. But 16:44 16 minutes, 44 seconds uh the main driver for certain significant increase in margin has been the lowriced uh uh raw materials. 16:55 16 minutes, 55 seconds Okay sir. Okay. Thank you. That's that's from Thank you very much. Thank you sir. 17:03 17 minutes, 3 seconds The next question comes from Mr. Anish, an individual investor. Please go ahead. So I'm audible. 17:11 17 minutes, 11 seconds Yeah. 17:12 17 minutes, 12 seconds Yeah sir. Yes. My question was so what is the company's strategy pricing strategy to counter cheap imports from 17:20 17 minutes, 20 seconds China in both yan and tire cord segments? 17:24 17 minutes, 24 seconds So in the yan u it has been always that we want to move up to value chain in terms of more specialized products and 17:32 17 minutes, 32 seconds our investments in value added products mother yan has been towards that end and that have given some benefits in this 17:38 17 minutes, 38 seconds quarter as well otherwise uh the pricing on the commodity products is still highly challenged because of the very 17:46 17 minutes, 46 seconds cheap import from China so we will continue on improving our value added products portfolio and also offering niche products to the 17:55 17 minutes, 55 seconds customers which are difficult to import or which are more customized to the for the customer. So that would continue to 18:02 18 minutes, 2 seconds be our strategy for uh nylon filament yarn. As far as the uh reinforcement is 18:09 18 minutes, 9 seconds there, we continue to work to provide superior service and better quality compared to imports. But uh since these 18:17 18 minutes, 17 seconds are technical products, these are basically driven by the tire companies on what tech uh specifications are 18:24 18 minutes, 24 seconds required. Uh while we uh we are the main uh driver would be increase in the 18:31 18 minutes, 31 seconds demand for uh the tire c itself and our investments particularly uh the new investment that we have made in polister 18:39 18 minutes, 39 seconds tire court which goes in passenger car tires is directed towards increasing our uh offerings in the tire reinforcement 18:47 18 minutes, 47 seconds market. So going forward our uh focus would be if any if this project really does well then the expansions and the 18:56 18 minutes, 56 seconds growth will come from the polished tire cord segment uh which we will wait once the uh current investment starts paying 19:04 19 minutes, 4 seconds for uh and uh shows good traction in terms of demand and capacity utilization but that's the major uh thing that we 19:12 19 minutes, 12 seconds would be doing. We would look at other verticals as well but that is still at a very preliminary evaluation stage 19:19 19 minutes, 19 seconds because we are part of technical textile value chain. So we would look at opportunities that could arise by 19:26 19 minutes, 26 seconds utilizing our current yarn capacities which are going into the tire segment also. So I had one more question. 19:38 19 minutes, 38 seconds So what is the current status of the PTCF approval process and when do you expect to commercialize commercial supplies to begin? 19:48 19 minutes, 48 seconds I I mentioned in the previous uh question with the previous speaker is that we expect commercial supplies to start in Q4. 19:56 19 minutes, 56 seconds Okay. Thank you sir. Yeah. 20:01 20 minutes, 1 second Thank you sir. The next question comes from Mr. Vipul Kumar from Sumagal Investments. Please go ahead. 20:10 20 minutes, 10 seconds So what is the capex we have incurred for PTCF project sir and what should be the approximately 100 crores. 20:20 20 minutes, 20 seconds Okay. And what is the expected IRRa on that? 20:24 20 minutes, 24 seconds Uh we have an internal target of IRS of more than 12%. I will not be able to give any specific number but it was in in excess of that. 20:34 20 minutes, 34 seconds And you mentioned uh value added products. So value added products uh means that is for only nylon filament yarn. Right sir? 20:44 20 minutes, 44 seconds Yeah. Yes. Right. 20:46 20 minutes, 46 seconds So out of the total volume of NF what percentage of volume is uh uh means uh 20:55 20 minutes, 55 seconds value added products and uh what type of uh uh realization higher realization you 21:02 21 minutes, 2 seconds get in percented terms as compared to commodity for that uh particular volume. 21:09 21 minutes, 9 seconds So again uh without being very specific it's over 35% uh of our portfolio is in 21:16 21 minutes, 16 seconds value added products and uh we get good margins which justify u additional investments into value 21:25 21 minutes, 25 seconds added uh equipments to make the so as we said we have internal minimum uh threshold that it 21:34 21 minutes, 34 seconds has to be crossed and uh these are much higher than these values and that helps in improving the viability of the NFI segment. 21:45 21 minutes, 45 seconds So then should we assume that commodity part that 65% rest 65% which is commodity business we are incurring losses on that business. 21:57 21 minutes, 57 seconds No, no, I'll not say that but I also not give any spe we don't give any breakups in terms of uh product wise but no we 22:06 22 minutes, 6 seconds are not incurring losses but margins are very less. 22:11 22 minutes, 11 seconds So last question uh means uh uh after 2 3 years what percentage of of your NFY 22:19 22 minutes, 19 seconds volume will be valuated sir we expect it to cross 50% or even more 22:27 22 minutes, 27 seconds um u so we we are continuously investing we have been investing in last 2 3 years uh continuously on that so we expect it to cross more than 50%. 22:39 22 minutes, 39 seconds So what type of capex we have done over last 2 three years to make this value added products? 22:48 22 minutes, 48 seconds Um almost close to um 50 crores 3 years in over 3 years. 22:55 22 minutes, 55 seconds Okay. Thank you sir. 23:00 23 minutes Thank you sir. The next question comes from Faluni Data from Mansur Financials. Please go ahead. 23:07 23 minutes, 7 seconds Yeah, good morning sir. Sir, I just missed on the capex on the PTC of cricket. 23:12 23 minutes, 12 seconds Hello ma'am. Please stay connected ma'am. The management got disconnected. 23:16 23 minutes, 16 seconds I'm dialing him. So welcome back to the call sir. Please go ahead. Hello. 23:21 23 minutes, 21 seconds Yes sir. I just missed on the kix on the PTCF project sir. 23:26 23 minutes, 26 seconds Yeah I mentioned it's about 100 crores uh for the entire yeah process. Okay. Entire the project. 23:34 23 minutes, 34 seconds Yes. Yes. 23:35 23 minutes, 35 seconds Okay sir. That's all from my side. Thank you. Thank you. 23:41 23 minutes, 41 seconds Dear participants, if you have any questions, please press star and one on your telephone keypad. 23:50 23 minutes, 50 seconds The next question comes from Kupa, an individual investor. Please go ahead. Hello. 23:58 23 minutes, 58 seconds Yes. 23:59 23 minutes, 59 seconds Uh so actually I just wanted to ask one thing that you have maintained a very strong cash position and limited debt. 24:06 24 minutes, 6 seconds So how do you plan to deploy uh the surplus cash will it be towards capacity buybacks or any dividends? 24:15 24 minutes, 15 seconds So u I mean we have followed a consistent dividend policy that would continue but uh mostly the this would 24:23 24 minutes, 23 seconds get deployed in new projects because we see a lot of opportunities in in uh growing this company uh in new segments 24:31 24 minutes, 31 seconds or into new verticals as and when we are able to conclude with the senior management on what uh or the 24:38 24 minutes, 38 seconds senior board on what really could be utilized for. But the main focus has been to utilize this cash for growing 24:47 24 minutes, 47 seconds this company and becoming more sustainable and profitable in future. 24:52 24 minutes, 52 seconds Got it. Got it. Also uh how much of your power requirement is now met through renewable energy and what further 24:59 24 minutes, 59 seconds savings are you seeing uh from this transition? 25:04 25 minutes, 4 seconds So currently uh on a totality basis about between I mean since it's variable 25:10 25 minutes, 10 seconds between 15 to 20% of uh a total power requirement is met by the renewable power and we intend to in the next 25:19 25 minutes, 19 seconds between 1 to 2 years take it to at least about 30 to 35% uh of the total requirement. 25:29 25 minutes, 29 seconds Sure. Thank you sir. uh also how do you see the capital act and price trends evolving and what is the potential 25:37 25 minutes, 37 seconds impact on the gross margins also going forward. 25:41 25 minutes, 41 seconds As I mentioned in earlier question we think that it is close to the bottom because uh okay the margins over the under uh the raw 25:50 25 minutes, 50 seconds materials for capillum are at again historical low. So all that capum even in China does not have a significant 25:58 25 minutes, 58 seconds margin. So we expect that possibly it is at close to the bottom and it should only go up. Uh however since it if it 26:08 26 minutes, 8 seconds remains at this we don't expect any further losses on our stocks. In fact if it goes up it would be supporting the company. 26:17 26 minutes, 17 seconds Got it. Thank you so much sir. Thank you. Thank you ma'am. 26:24 26 minutes, 24 seconds The next is the follow-up question from Faluni Data from Manserova Financials. Please go ahead. 26:31 26 minutes, 31 seconds Yeah. Is it possible to get the total domestic nylon filament yarn demand and the annual imports? 26:40 26 minutes, 40 seconds So I mean there is no authent I mean we collect our data from uh multiple sources. So the demand is around just 26:49 26 minutes, 49 seconds under two lakh tons peranom and uh the imports uh uh I mean on an annualized basis and the imports have 26:58 26 minutes, 58 seconds been close to between 30 to 35% of the demand. 27:02 27 minutes, 2 seconds Okay. And uh this 35% is it is for this year or what would be normal like let's say average 27:10 27 minutes, 10 seconds normal is between 15 to 20% and it has almost doubled in uh uh at least on the quarteron quarter basis we still have to 27:18 27 minutes, 18 seconds see the balance to quarter but uh okay compared to quarter 1 and compared to quarter two last year 27:27 27 minutes, 27 seconds almost I mean from again the import statistics only the imports corresponding to quarter two last year 27:34 27 minutes, 34 seconds is more than 100% increase and compared to quarter 1 is more than 50% increase. Okay. 27:42 27 minutes, 42 seconds Answer it will be mostly from uh China most of it we can say. Yeah. Almost 90 to 95% is China. 27:51 27 minutes, 51 seconds Sir and what what to your mind can turn this I mean suppose uh I mean uh uh 27:59 27 minutes, 59 seconds without the dumping duty in place let's say what is it that it happens and it can change this situation I I is a 28:07 28 minutes, 7 seconds capacity uh like reduction of capacity expected in China because unless the demand improves there we cannot expect 28:15 28 minutes, 15 seconds this to come off right so actually uh yes there is an huge over capacity in China in the filament 28:23 28 minutes, 23 seconds segment. Uh one of the things which could change is uh if the China US tariff were to get sorted out because 28:32 28 minutes, 32 seconds lot of exports of fabric which was produced using the yans either mostly in China have been impacted by this tariff 28:41 28 minutes, 41 seconds situation between US and China. So that surplus is actually flowing to chi, India and some other countries as well. 28:50 28 minutes, 50 seconds India is also a growing market. So becomes a natural land and with with very low duty protection uh is 28:57 28 minutes, 57 seconds vulnerable to this high imports and that's why this anti-dumping duty has been pursued by the industry. 29:04 29 minutes, 4 seconds Okay. And sir similarly for tire cord is it possible to give the total domestic demand and imports? 29:12 29 minutes, 12 seconds uh I mean again the estimated domestic demand is in the range of uh 1 uh 3 lakh 29:21 29 minutes, 21 seconds tons to 1.5 lakh tons uh again depending on seasons and quarters but uh I think 29:28 29 minutes, 28 seconds it's about 1.5 would be the right uh estimate uh and this will include both nylon and polyester 29:36 29 minutes, 36 seconds no no mainly nylon polyester would be uh additional about 4,000 29:42 29 minutes, 42 seconds or 40 to 35 to 40,000 tons. I mean um that could be the demand uh and the 29:51 29 minutes, 51 seconds impact I mean sorry you asked another question what was that and the other was an import of these 29:58 29 minutes, 58 seconds so imports of uh this is about continues to be about 20 to 25% in particularly in the nylon tire 30:06 30 minutes, 6 seconds and uh this is also the normal range yes it is I mean it has gone up about 5% 30:12 30 minutes, 12 seconds but it is not as uh significant increase as compared to nylon filament here. 30:19 30 minutes, 19 seconds Okay, understood. Thank you. That's welcome. Thank you. 30:25 30 minutes, 25 seconds Thank you. Dear participants, if you have any questions, please press star and one on your telephone keypad. 30:35 30 minutes, 35 seconds Again, the follow-up question comes from Vipul Kumar Sha from Sumangal Investments. Please go ahead. 30:42 30 minutes, 42 seconds So what is the our current capacity utilization in both tire code and filament division sir? 30:50 30 minutes, 50 seconds U we do not give uh we report our u results in one segment. So we only given the additional 30:58 30 minutes, 58 seconds information in terms of the turnover. So against a capacity of 92,000 on combined basis for all products production was 31:07 31 minutes, 7 seconds for the quarter I mean sales sorry volume sales volume was about 17,920 tons 31:16 31 minutes, 16 seconds okay so annualize it will be 68,000 right so that so out of 92,000 31:24 31 minutes, 24 seconds so we are uh currently working with 65 70% capacity utilization currently 31:32 31 minutes, 32 seconds yeah close to I mean I mean because quarter two was slightly better and 31:38 31 minutes, 38 seconds because the restart so yeah 18 about 72,000 if I I were to just multiply 31:44 31 minutes, 44 seconds 18,000 into four so 72,000 on 92,000 I mean but that was not necessarily the way it may work it could be higher lower 31:53 31 minutes, 53 seconds depending on lot of other things okay sir thank Yeah. Thank you. 32:02 32 minutes, 2 seconds Thank you, sir. Dear participants, if you have any questions, please press star and one on your telephone keypad. 32:17 32 minutes, 17 seconds Again, the question comes from Faluni Data from Mansurov Financials. Please go ahead. 32:23 32 minutes, 23 seconds any uh if you can name a few more uh let's say two three players in this uh both in NTC uh nylon tire cord and 32:32 32 minutes, 32 seconds filament yarn in India I mean bigger players if you can make mention four five names 32:39 32 minutes, 39 seconds or is it very fragmented no no in reinforcement market there are only two other players one is a listed company called SRF they have a division 32:48 32 minutes, 48 seconds called technical textiles uh but they have multiple products in that it is not the star u multiple technical textile products are there and 32:57 32 minutes, 57 seconds then there is Madura uh industrial textile which is a private limited company I mean not listed 33:05 33 minutes, 5 seconds uh in the so uh in that is the only three players in domestic market domestic uh suppliers 33:13 33 minutes, 13 seconds in nylon filament it is fragmented but PNP uh oron these are few companies uh 33:21 33 minutes, 21 seconds uh who are but most Most of them are all are privately uh held. They are not listed. 33:27 33 minutes, 27 seconds Okay. Thank you sir. 33:33 33 minutes, 33 seconds Thank you. The next question comes from Anish, an individual investor. Please go ahead. Yes. Uh sir, I have a followup question. 33:42 33 minutes, 42 seconds So from a strategic standpoint, how does Century and Cara plan to position itself in the technical textile segment over the next two to three years? 33:53 33 minutes, 53 seconds As I said there are still we are evaluating what segments are attractive where we can uh make uh 34:03 34 minutes, 3 seconds u real good entry which is uh long-term which is sustainable profitable. So we are still evaluating 34:10 34 minutes, 10 seconds u we already have the tire cord fabric itself comes under technical textile domain and the yarns that manufactur we 34:19 34 minutes, 19 seconds use for making uh tire cords could be used for other technical textile as well. So we are evaluating that as and when we have any concrete proposal and 34:28 34 minutes, 28 seconds post approval of the board we would uh announce it through the normal routine channel. 34:35 34 minutes, 35 seconds Thank you sir. 34:39 34 minutes, 39 seconds Thank you sir. Dear participants, if you have any questions, please press star and one on your telephone keypad. 34:48 34 minutes, 48 seconds Dear participants, if you have any questions, please press star and one on your telephone keypad. 34:57 34 minutes, 57 seconds So there are no further questions. Now I hand over the floor to Mr. Suresh Sudani for closing comments. 35:05 35 minutes, 5 seconds Uh thank you everyone for joining our earnings call. I hope you were able to give the answers to your queries and I hope those were to your satisfaction. If 35:14 35 minutes, 14 seconds you have any further questions or would like to know more about the company, please reach out to our investor relation manager at room advisor. Thank you. 35:23 35 minutes, 23 seconds Thank you sir. Ladies and gentlemen, this concludes the conference call for today. Thank you for your participation. 35:30 35 minutes, 30 seconds You may disconnect your lines now. Thank you and have a good