Ddev Plastiks Industries Limited — Q3 FY26

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

0:02 2 seconds Ladies and gentlemen, good day and welcome to the D-Day Plastics Industries Limited Q3 FY26 earnings call. As a 0:11 11 seconds reminder, all participant lines will be in the listenon mode and there will be an opportunity for you to ask questions after the presentation concludes. Should 0:20 20 seconds you need assistance during this conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that 0:29 29 seconds this conference is being recorded. I now hand the conference over to Miss Salony from Go India Advisors. Thank you and over to you ma'am. 0:39 39 seconds Good afternoon everyone. On behalf of Go India Advisors, I welcome all of you to third quarter and 9 month of FI26 0:47 47 seconds earnings conference call of Dave Plastic Industries Limited. Today from the management we have Mr. Narendra Kurana, chairman and managing director. Mr. Dr. 0:57 57 seconds Dale Karana who director and CEO Mr. Rajesh Kotari whole time director Mr. 1:03 1 minute, 3 seconds Aran Bhotra chief financial officer and Dr. Rakkesh Tvari CEO renewable energy. 1:09 1 minute, 9 seconds I now hand over the confidence to Mr. De Surana for his opening remarks and then we will open the floor for question and answer. Over to you. 1:19 1 minute, 19 seconds Thanks Salonyi. Good afternoon everyone. 1:21 1 minute, 21 seconds Welcome to the date plastics quarter 3 and 9 months of financial year 26 earnings call. We appreciate your time and continued interest in our journey. 1:31 1 minute, 31 seconds Today our board of directors approved the financial results for quarter 3 FI26. We are pleased to share with you our performance highlights, key developments and outlook for the future. 1:42 1 minute, 42 seconds As we enter 2026, India stands poised for robust growth bolstered by supportive macroeconomic tailwinds and proactive policy measures from the 1:51 1 minute, 51 seconds government and the to counter external winds, headwinds, strategic fiscal stimuli, including 1:58 1 minute, 58 seconds personal tax relief and GST 2.0 into reductions coupled with multiple RBI rate cuts, liquidity injections, 2:06 2 minutes, 6 seconds regulatory reforms, and sustained Apex momentum have eased monetary conditions and unlocked double-digit corporate earnings potential. 2:14 2 minutes, 14 seconds Micro indicators affirm this resilience with real GDP growth surpassing expectations at 7.8% for first quarter 2:22 2 minutes, 22 seconds and 8.2% in the second quarter. While inflationary impulses remained well contained providing RBI ample 2:30 2 minutes, 30 seconds flexibility to stimulate further if needed. Thus domestic tailwinds decisively outweigh uncertaintities ahead. 2:38 2 minutes, 38 seconds The proposed capital expenditure of 12.2 lakh cr for FY27 up 11.5% in line with 2:45 2 minutes, 45 seconds the nominal GDP growth highlights the government's steadfast commitment to infrastructure modernization and sustained capacity building in critical sectors. 2:54 2 minutes, 54 seconds Budget 2627 position positions energy security, domestic manufacturing and long-term 3:01 3 minutes, 1 second system stability at the heart of India's growth strategy. 3:06 3 minutes, 6 seconds The emphas beyond mere capacity addition to reducing import dependence, strengthening value chains and enabling forward-looking infrastructure such as 3:14 3 minutes, 14 seconds storage, digitization, nuclear power and CCUs. 3:19 3 minutes, 19 seconds The thousand cr allocation as viability gap funding for battery energy storage systems will be pivotal in enhancing 3:25 3 minutes, 25 seconds grid stability, integrating renewables more effectively and managing peak power demand. This initiative will curb 3:33 3 minutes, 33 seconds reliance on fossil fuels and hasten India's shift to a cleaner, more reliable and sustainable energy future. 3:40 3 minutes, 40 seconds To effectively meet and exceed this escalating demand, particularly from the renewables and power sector, we are proactively expanding our geographical 3:48 3 minutes, 48 seconds footprint to reach new markets and simultaneously broadening our comprehensive product offerings to better serve this these growth areas. 3:56 3 minutes, 56 seconds Building strategically on this overarching trend towards renewable energy adoption, we have made the decisive move to enter to the high 4:05 4 minutes, 5 seconds potential sunrise sector of battery energy storage systems manufacturing. 4:09 4 minutes, 9 seconds The global energy storage market is experiencing rapid evolution and expansion strongly supported by ambitious worldwide decarbonization 4:17 4 minutes, 17 seconds objectives and the accelerating integration of renewable energy sources across diverse geographies. 4:24 4 minutes, 24 seconds This forward thinking diversification firmly positions Dave plastics at the vanguard of the border energy 4:31 4 minutes, 31 seconds transformation landscape. To elaborate further on our best initiative, we will commence operation through an assembly business model with a dedicated green 4:39 4 minutes, 39 seconds field plant scheduled to be fully operational starting in the second half of this year. This expansion will involve a capacity expenditure of 4:48 4 minutes, 48 seconds approximately 150 crores in phase 1 entirely funded through internal approvals and will establish an initial plant capacity of 5 4:57 4 minutes, 57 seconds gawatt. We will introduce this as a distinct new reporting segment and in the early stages we anticipate generating revenue in the range of 800 5:06 5 minutes, 6 seconds to 900 crores from just 1 gawatt of battery storage capacity which is projected to contribute around 20% to our overall revenue. 5:16 5 minutes, 16 seconds Now despite global disruptions affecting export activities, we have demonstrated remarkable resilience and remain committed to achieving our ambitious 5:24 5 minutes, 24 seconds revenue targets of 5,000 crores by financial year 30 with approximately 20 25% of that revenue derived from 5:31 5 minutes, 31 seconds exports. Here I would like to highlight that our export contribution increased in this quarter even against the back backdrop of challenging geopolitical 5:40 5 minutes, 40 seconds crisis. Notably exports grew strongly to 196 crores almost 200 crores in quarter 5:46 5 minutes, 46 seconds 3 of financial year 2026 which is 27% of our total revenue for 9 months. Uh FI26 5:55 5 minutes, 55 seconds exports reached around 523 crores reflecting 33% year-on-year growth throughout the year. 6:02 6 minutes, 2 seconds Our unwavering focus has been enhancing operational uh efficiencies, advancing cutting edge process technologies and 6:10 6 minutes, 10 seconds strategically expanding our product portfolio to meet the evolving market demands. In line with this strategy, we 6:17 6 minutes, 17 seconds have successfully expanded our production capacities in both halogen free flame retardant compounds and PVC 6:24 6 minutes, 24 seconds compounds which are key material and critical to the cable industries. 6:28 6 minutes, 28 seconds Notably, HFR compounds are poised to replace traditional PVC in housing wiring, house wiring, and the government has now mandated the use in high safety 6:37 6 minutes, 37 seconds public infrastructure such as malls, metro stations, hospitals, pools, and other vital public areas. While HFR also plays an indispensable role in manufacturing solar cables. 6:48 6 minutes, 48 seconds Furthermore, PBC remains the most widely utilized compounds across the cable sector with surging demand given by the entry of two new major players like 6:57 6 minutes, 57 seconds Adani and Ultr Tech. Its market requirements are expected to rise substantially. We are therefore delighted to announce a significant new capacity additions. 7:07 7 minutes, 7 seconds We have commissioned an additional 30,000 metric tons peranom comprising 5,000 metric tons dedicated to HFR and 7:14 7 minutes, 14 seconds 25,000 metric tons to PVC thereby elevating our total installed capacity to 10,000 metric tons peranom for HFR and 69,000 metric tons peranom for PVC. 7:27 7 minutes, 27 seconds This expansion has been funded entirely through internal approvals at a cost of 50 crores and as of December 2026, our 7:34 7 minutes, 34 seconds installed capacity now stands at 2 lakh 68,400 metric tonses peranom. It is also worth highlighting that Dave plastic 7:42 7 minutes, 42 seconds stands as the only listed player in India engaged in HFR manufacturing underscoring a unique market position. 7:50 7 minutes, 50 seconds Looking ahead, we are also planning to further enhance the capacity in XLP compounds where we are already where we already command an impressive more than 7:58 7 minutes, 58 seconds 33% market share. XLP compounds are gaining tractions as grids and industries demand high efficiency and 8:05 8 minutes, 5 seconds reliability. The global XLP cables market size was valued at USD 35.84 8:12 8 minutes, 12 seconds billion in 2025 and is projected to grow at a staggering USD 61.42 42 billion by 2034. 8:21 8 minutes, 21 seconds These strategic efforts have not only enhanced customer responsiveness and product performance but also positioned us strongly to capture emerging 8:29 8 minutes, 29 seconds opportunities in a rapidly evolving market landscape. Our capacity enhancement initiatives are progressing on schedule aligning with the strategic 8:37 8 minutes, 37 seconds road map that underpins Dave Plastics's growth momentum directly tied to the expanding wire and cable sector ting on India's infrastructure development and 8:45 8 minutes, 45 seconds the government's substantial capex commitments. The increasing emphasis on renewables, energy security and significant investments in transmission 8:52 8 minutes, 52 seconds and distribution systems powerfully drive demand for our polymer compounds. 8:57 8 minutes, 57 seconds While more entering the industry, further strengthens our given our unique position in the high entry barrier market. 9:06 9 minutes, 6 seconds Backed by a three generation legacy as a trusted supplier of leading manu uh to to becoming the leading manufacturer, we have leveraged established 9:15 9 minutes, 15 seconds relationships, proven product reliability and zero rejection rates that underscore our unmatched quality assurance and operational excellence to 9:23 9 minutes, 23 seconds drive greater efficiency. We are collaborating with stakeholders to reduce manual intervention in raw material handling and finished product packaging as well. Building on the 9:32 9 minutes, 32 seconds existing automation in packaging lines while exploring further expansions for higher productivity, lower cost and 9:38 9 minutes, 38 seconds consistency. In FI26, we remain confident of surpassing the earlier guidance of growing on 10 to 12% CAGR 9:46 9 minutes, 46 seconds basis demonstrating shared commitment, resilience and ambition to become a top quality polymer compounder to the world 9:53 9 minutes, 53 seconds from India. I now hand over to our CFO Mr. Arian Bhra for his comments and remarks. 10:01 10 minutes, 1 second Thank you D. Good afternoon. Wishing you all a very happy new year filled with success and new opportunities. I trust 10:08 10 minutes, 8 seconds you had the opportunity to review our results and investor presentation. We at Dave Plastics are pleased to report a positive third quarter and 9 months results for FI26. 10:18 10 minutes, 18 seconds As of 9 months FI26, our production volume stood at roughly 1 lakh 50,000 tons while our capacity utilization 10:25 10 minutes, 25 seconds stood at 81%. For the third quarter, revenue from operation reached approximately 733 crores representing a 10:33 10 minutes, 33 seconds 11% Y growth. Aida stood at 80 crores with a margin of 11% while PAT was approximately 48 crores delivering a 10:42 10 minutes, 42 seconds margin of 7% for the quarter. For the 9 months, revenue from operations reached approximately 2182 crores representing doubledigit growth of 17% Y on Y basis. 10:53 10 minutes, 53 seconds IDA stood at 234 crores with a margin of 11% while PAT was approximately 147 crores delivering a margin of 7% for the 11:01 11 minutes, 1 second quarter. This performance was primarily driven by sustained strong demand in the wire and cable industry coupled with an increase in our average selling price. 11:10 11 minutes, 10 seconds Export contribution also grew sharply with improved trade terms and negative alignment. The US trade deal positions 11:17 11 minutes, 17 seconds excel upon industry for increased export scale efficiencies and long-term demand growth. 11:23 11 minutes, 23 seconds We remain strongly confident in exceeding our earlier FI26 guidance with our goal of reaching 5,000 cr in topline 11:30 11 minutes, 30 seconds by FI30 firmly on track. Looking ahead, we anticipate this positive demand momentum will continue in the upcoming 11:38 11 minutes, 38 seconds quarters and fiscals also. We now open the floor for question and answers. 11:45 11 minutes, 45 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch to telephone. 11:55 11 minutes, 55 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use 12:02 12 minutes, 2 seconds handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. 12:28 12 minutes, 28 seconds First question is from the line of Archana from IDVI Capital. Please go ahead. 12:33 12 minutes, 33 seconds Hi sir, thank you for the opportunity. I have a few questions. So starting with uh the battery energy storage assistance. So how we should look at 12:41 12 minutes, 41 seconds this segment in terms of uh contribution to earnings from H2 FI27 I uh in the opening remark you mentioned that 800 to 12:49 12 minutes, 49 seconds 900 crores from 1 gawatt uh but how we should model these numbers from let's say H2 FI 27 and 28 onwards also if you 13:00 13 minutes can help us to understand uh the operating margin profile once the business stabilizes so that is my first question sir 13:08 13 minutes, 8 seconds thank you Archa G uh As far as FI27 is concerned, we will start with uh in the second quarter, second half of this year 13:16 13 minutes, 16 seconds and we expect the volume to be initially lower side. However, uh from FI28 the volumes will pick up substantially 13:24 13 minutes, 24 seconds because initially there will be some approval stages and uh other alignments which will require some time for teething I think the teething issue will 13:31 13 minutes, 31 seconds be there. So as DVG has highlighted we are expecting the first year the first gigawatt hour revenue to be around uh 13:39 13 minutes, 39 seconds 800 to 900 crores. However, for this financial year uh which is just a correction in the statement, it is expected to be in the range of within 3 to 500 odd crores. 13:50 13 minutes, 50 seconds And so 3 to 500 K s you're talking about FI FI27. FI27. Yes. 13:58 13 minutes, 58 seconds Right. And uh when we'll reach this 1 gawatt maybe FI28. Yes. 14:05 14 minutes, 5 seconds FI28 can be more than 1 gawatt hour also. He has just given a guidance that 1 gawatt hour contributes close to 800 14:12 14 minutes, 12 seconds to 900 crores of re revenue right ar how should I model these numbers like uh like what where do we 14:19 14 minutes, 19 seconds want to reach let's say uh you know like two 2 gawatt 3 g gawatt by the let's say 2030 like if you can just help me uh 14:28 14 minutes, 28 seconds with you know that part so so uh uh tar is there on the callar g 14:36 14 minutes, 36 seconds yes good evening to all of This is Rakkesh Diwari leading the renewable energy division at Deoplastics and uh as 14:44 14 minutes, 44 seconds our group CEO and CFO mentioned that we already launched our clean energy to manufacture our 5 gawatt hour battery 14:53 14 minutes, 53 seconds manufacturing in Ahmedabad. So regarding the 1 gawatt is like a how you you want to understand the models and the terms 15:01 15 minutes, 1 second of amount 1 gawatt is is equal to is 1,000 uh megawatt and 1,000 megawatt 15:08 15 minutes, 8 seconds multiply by 1,000 and is in terms of the kilowatt is is around 1 million kilowatt. Now the current scenario if we 15:16 15 minutes, 16 seconds are going to sell the BSS container or any BSS equipment which are available in India as the global market is the 15:23 15 minutes, 23 seconds minimum one 1 kilowatt is $100. So now is the is our $100 1 kilowatt is the current price by today. So multiply by 1 15:33 15 minutes, 33 seconds gawatt is around 950 core rupees is if we are talking about 1 gawatt and as mentioned our cfo and the group co we 15:41 15 minutes, 41 seconds are make sure that is fy 2028 we will manufacture minimum 1 gawatt our vsss 15:48 15 minutes, 48 seconds container in our factory based in Ahmedabad and we are targeting to around more than 2 gawatt but practically we 15:57 15 minutes, 57 seconds will supposed to deliver our first gawatt in 2028 And uh expected uh expected revenue would be around 950 cr 16:06 16 minutes, 6 seconds is the today current price right you spoke about reaching the 5 gawatt so that will be eventually let's 16:14 16 minutes, 14 seconds say how how many years you will take to reach that 5 gawatt our is our our group target our internal 16:23 16 minutes, 23 seconds target is the less than less than 3 years we will achieve is our 5 gawatt hour but uh practically Practically and 16:32 16 minutes, 32 seconds theoretically it is possible in our our initially we mentioned is it was mentioned 2030 to before 2030 we will 16:40 16 minutes, 40 seconds achieve our 5 G our complete solution because we are we are not going to only manufacture the contain our BSS we are 16:48 16 minutes, 48 seconds going to further all this solution like a initially initially stage we are going to manufacture 5 gawatt hour BSS plant 16:55 16 minutes, 55 seconds in Ahmedabad and project we are also launching our project solution like EPCs uh EPC with the solar and EPC with the 17:04 17 minutes, 4 seconds stand alone. So uh we are providing the our containerized BSS solution as well as we are going to make our make make 17:12 17 minutes, 12 seconds the project in uh inside the our country and we are also targeting if you are getting any any tender out of the India 17:20 17 minutes, 20 seconds we are also targeting to complete this project. 17:24 17 minutes, 24 seconds Right tiar if you can help us understand who are the current players in this segment now in the domestic market 17:31 17 minutes, 31 seconds is the current player if you are talking about the current player uh there is no such a manufacturer having the 17:38 17 minutes, 38 seconds automatically yes few players is already enter like a uh JSW and page digit and other they announce and uh they they 17:47 17 minutes, 47 seconds just announced but still on the ground level like us because we already we already uh decided to buy the line. Our 17:57 17 minutes, 57 seconds line will be installed start from the month of June and July. So we maybe we will be uh start our production from 18:06 18 minutes, 6 seconds August onwards others they they announcement uh prismatic because the cylindrical lot of players there but 18:13 18 minutes, 13 seconds prismatic I think so three four three four player like a GSW and uh page digit etc. 18:21 18 minutes, 21 seconds Sure. 18:22 18 minutes, 22 seconds G Aryan G um now since we have entered into this space so would you like to upgrade our 5,000 cr net sales target by 18:30 18 minutes, 30 seconds 2030 like I'm sure this number will be like way more than 5,000 cr now definitely but as of now this 5,000 is 18:37 18 minutes, 37 seconds which we are projecting is from the existing line of business correct we are not giving any separate guidance for uh best project it will come in the 18:44 18 minutes, 44 seconds following quarters as of now the main is from the existing business sure And uh now coming to this maybe you 18:53 18 minutes, 53 seconds know again I'll come back in the queue one more question on this capacity addition FI27 you already spoke about uh 19:00 19 minutes what about FI28 and maybe capex for that will be helpful uh see 19:08 19 minutes, 8 seconds uh everything is in uh you can uh in pipeline the number and the details cannot be shared immediately but 19:15 19 minutes, 15 seconds definitely you will see by next quarter a lot of details are being uh published revealed. So as of now I will uh stick 19:24 19 minutes, 24 seconds to the numbers which we have already disclosed regarding the PBC and HF car part. 19:28 19 minutes, 28 seconds Sure sir. Thank you so much and all the best sir. Thank you. Thank you. 19:35 19 minutes, 35 seconds Thank you. Participants who wish to ask a question may press star and one on the touchstone telephone. The next question 19:43 19 minutes, 43 seconds is from the line of bar from ambit asset management. Please go ahead. 19:51 19 minutes, 51 seconds Yeah, good afternoon team and uh uh thank you very much for the opportunity. 19:55 19 minutes, 55 seconds So my first question is on the best project. Uh so just wanted to understand that uh who will be the customers we 20:03 20 minutes, 3 seconds would we supplying to the EPC players and uh secondly would this be more of a domestic uh business or we looking at export opportunity as well? 20:15 20 minutes, 15 seconds G. 20:16 20 minutes, 16 seconds Yes. Yes. Yes. I can I can give the answer sir. Uh uh one by one is like regarding need to start about the who 20:25 20 minutes, 25 seconds will be the our customer. Customer is decided two parts. One is government and one is the semi-government. If you are 20:33 20 minutes, 33 seconds talking about government and semi-government there are around 15 customer is like if I'm just giving one 20:40 20 minutes, 40 seconds example like a siki svnpc CBDCL PGCIL these are the player who 20:48 20 minutes, 48 seconds will direct who will direct buy from us DC plus AC both they are not going to separate they are not going to separate 20:55 20 minutes, 55 seconds only DC container they will buy complete solution. So these these will be the direct our customer. Uh and uh if you are talking about the private customer. 21:04 21 minutes, 4 seconds So private customers private customer lot of private customer is there like a rainy tech bonad enrich in India fourth 21:15 21 minutes, 15 seconds partner insolar GSP project Kalpa power Krishna carp limited L&T MKC infra 21:24 21 minutes, 24 seconds infrastructure limited NCC Limited NTPC G power opera energy 21:31 21 minutes, 31 seconds technologies proil green raise power infra RS Infra project, Satri Green, Solar Work, SPML, Estling Innovation, 21:41 21 minutes, 41 seconds Select Energy, Jetwork Manufacturing, Juvary. These are the these are the customer where this customer already won 21:49 21 minutes, 49 seconds the tender and they are also participating the tender uh because they are expert in EPC. So we are targeting 21:56 21 minutes, 56 seconds we are targeting to directive with the 30 customer to sell our DC part of containers and we are targeting four to 22:04 22 minutes, 4 seconds five government projects where we will supply DC plus AC bat energy storage system direct to the government of India. Thank you so so much. 22:15 22 minutes, 15 seconds And sir uh uh is this business also going to be working capital intensive because uh uh the uh many of the names 22:22 22 minutes, 22 seconds you mentioned uh essentially refer to PSUs. So if you can uh highlight on that part as well. 22:30 22 minutes, 30 seconds Yeah. Uh this project these types of project are very high working capital 22:37 22 minutes, 37 seconds intensive and uh our CFO Mr. Ariant will also explain about these things but these are the very high working capital intensive. 22:48 22 minutes, 48 seconds Uh Baji just to add to it that uh in this business the major role is of procurement and processing than the 22:56 22 minutes, 56 seconds supplies since there is a limited supply available in from the Indian context. So the main working capital requirement is 23:04 23 minutes, 4 seconds towards procurement from the the raw metal part as well as processing time. 23:08 23 minutes, 8 seconds So probably as uh Targ said definitely working capital requirement is high but that is more towards uh the supply chain management. 23:20 23 minutes, 20 seconds So in terms of number of days would it be fair to say about four to 6 months of working capital investment will be 23:28 23 minutes, 28 seconds there? No no no not exactly it is not uh the way which we are looking in this uh we are looking towards 60 to 75 days at 23:37 23 minutes, 37 seconds max to start with wherein uh we are we will be the suppliers to them and uh when we think of going to the next stage 23:45 23 minutes, 45 seconds when we will be tying up with the government agencies and supplying them directly then probably this will change but as of now to start with we are 23:52 23 minutes, 52 seconds targeting a limited uh cycle and uh does This business also benefit 24:00 24 minutes our conventional business. Are there any synergies? 24:04 24 minutes, 4 seconds Yes. If you see the ultimate beneficiaries to some extent are similar maybe NTPC power grid or any other uh 24:13 24 minutes, 13 seconds big player who are ultimately consuming the cables and the uh this best containers both are same. 24:21 24 minutes, 21 seconds Secondly, we being aligned with the power cable industry and power industry, there are lot of commonalities whether 24:28 24 minutes, 28 seconds that is solar as an additional requirement or a regular uh transmission and distribution line. So this is just 24:34 24 minutes, 34 seconds to keep up with the you can say storage of power to make sure there is no loss of power. So that is something which we 24:43 24 minutes, 43 seconds are addressing. As of now we are supplying cables for transmission. Now we are ensuring that we will be helping them to restore the wastage of power. 24:54 24 minutes, 54 seconds Okay. Uh thank you for the clarification sir. My last question is that if you look at the domestic revenue growth it's uh closer to about 13%. Uh for 9 months. 25:05 25 minutes, 5 seconds So now that uh the US tariff deal has been sorted and we were sort of impacted indirectly because of the uh deemed 25:14 25 minutes, 14 seconds exports uh what kind of visibility do we have now? Is it fair to assume that this revenue growth should pick up the domestic 25:21 25 minutes, 21 seconds if you don't mind can you repeat your question? We lost your voice in the interim. 25:26 25 minutes, 26 seconds Sir, I'm saying that our domestic revenue growth was about 13% uh in 9 months and that was impacted because of 25:34 25 minutes, 34 seconds the US tariff as well because we are deemed export beneficiary. So now that the tariff uh seems to have been 25:43 25 minutes, 43 seconds resolved uh is it fair to assume some pickup in this growth going forward? So I will request you to act. 25:51 25 minutes, 51 seconds Yeah. Yes. Yes. We we we are very confident that this growth should pick up now because last 6 months say 25:58 25 minutes, 58 seconds starting from August uh it had been a very difficult period uh because because we have seen some recovery coming back 26:05 26 minutes, 5 seconds in the month of November but again it dropped by by mid of December again. So now we are getting clear signal from our 26:13 26 minutes, 13 seconds customers that uh all uncertaintities are behind us. So they will approach to the American market aggressively and we 26:20 26 minutes, 20 seconds being well prepared for that because we are the only company in India holding means having the right product for that application and also having the US 26:28 26 minutes, 28 seconds certification because we are already listed for for one product already listed for two more products we'll be 26:34 26 minutes, 34 seconds listed during the say FI 2627 so as early as it will start from June 2026 so 26:42 26 minutes, 42 seconds we'll definitely get benefit of that and we'll be able to capture uh greater market share in that area as well. 26:49 26 minutes, 49 seconds Great sir. Thank you very much and all the very best. Thank you. 26:57 26 minutes, 57 seconds Thank you. Participants who wish to ask a question may press star and one on the touchstone telephone. The next question 27:05 27 minutes, 5 seconds is from the line of Guru Daran from Kitara Capital. Please go ahead. 27:13 27 minutes, 13 seconds Hello. I'm audible. Yes. Yes. Good afternoon. Uh yes, thank you for the opportunity. 27:19 27 minutes, 19 seconds Uh sir, just on the margin front during the quarter we have seen around volume growth of around uh 10% while the AIDA 27:28 27 minutes, 28 seconds has been 7%. Could you help me understand key factors that led to this divergence like decline in AIDA margins per EG for the current quarter? 27:40 27 minutes, 40 seconds uh uh I don't know how you're calculating the numbers but as for my calculation the IITA per ton has moved 27:49 27 minutes, 49 seconds from uh last quarter by almost 150 plus rupees rather close to 180 rupees and when I compare the similar for 9 months 27:56 27 minutes, 56 seconds also there is a growth of the positive growth of almost 570 rupees so probably 28:04 28 minutes, 4 seconds if you can just elaborate yeah what what has been the volume growth for the current quarter 28:10 28 minutes, 10 seconds Yes, just a second. So, in the current quarter, the volume growth as compared the volume sold growth as compared to the previous quarter is close to 6%. 28:22 28 minutes, 22 seconds And when I compare the similar number on Y on Y basis, the number is at close to 6%. 28:32 28 minutes, 32 seconds Okay. Okay. So, I got the volume growth wrong. Fine. Uh yeah just on the uh best initiative uh just to clarify my 28:41 28 minutes, 41 seconds understanding your current plan is to focus on assembly where you import uh battery cells you integrate into modules 28:48 28 minutes, 48 seconds or battery packs uh followed by containerization right along with power electronics EMS safety systems and all that. 28:56 28 minutes, 56 seconds Yes. Yeah. 28:58 28 minutes, 58 seconds Yeah. Yeah. My question specific to uh uh uh Mr. Dave Sudana uh given there's a 29:06 29 minutes, 6 seconds new business line uh for the company could you help me understand how you're 29:13 29 minutes, 13 seconds building execution capabilities and also uh don't you see any growth opportunities or investment 29:21 29 minutes, 21 seconds opportunities within the existing uh you know uh specialty uh chemical compounds we operate in. 29:30 29 minutes, 30 seconds Thank you for your question. uh see the answer is simple. We want to be a one-stop solution to provide as many 29:38 29 minutes, 38 seconds solutions as possible in the power and transmission sector. So while our current existing uh products have uh sufficient growth drivers and is is uh is is well poised for the next 5 years. 29:49 29 minutes, 49 seconds So getting into the battery energy storage sector and essentially entering the renewable sector directly is also aligned and synergistic with the 29:57 29 minutes, 57 seconds existing operations. So the key in that is the procurement the processing. Again it's a very technical product. So 30:05 30 minutes, 5 seconds nowadays most most of the people are just assembling it just buying and assembling it. Essentially they are traders but we have the technical 30:13 30 minutes, 13 seconds backend and the right uh components to provide the right service. So it is actually very well aligned and synergistic with the existing products. 30:22 30 minutes, 22 seconds Could you could you expand on the technical backing you just mentioned? Uh I think Tiwari G can explain you better 30:30 30 minutes, 30 seconds that. So Mr. Tari if you can uh help uh Mr. Guru. 30:36 30 minutes, 36 seconds Yes. Yes. Yes sir. Yeah. Yeah. So let me reply sir about the technically things. 30:42 30 minutes, 42 seconds Uh the the first important things why BSS demand will be very high in India. 30:49 30 minutes, 49 seconds Solar and wind are intermittent. Right now the grid cannot handle sudden fluctuation. 30:56 30 minutes, 56 seconds So BSS is the only scalable solution for balancing variable renewable energy. So 31:04 31 minutes, 4 seconds regarding the technology selection we had selection we had selected our the automatic lines. The automatic lines 31:13 31 minutes, 13 seconds means we will just buy the lithium cell and the lithium cell configuration from 314 as well as 587. 31:21 31 minutes, 21 seconds It is called very high quality LFP cell and prismatic cell. We will we will buy just only LFP and we will make our 31:31 31 minutes, 31 seconds cell to battery and battery pack and pack to container. So based on the technology we are not we are not going 31:39 31 minutes, 39 seconds to buy just line to to make this uh battery and the pack and our container assembly. We are buying the all these 31:48 31 minutes, 48 seconds equipments which can be insured that whatever we are importing the raw materials they will check 100% in shorty 31:57 31 minutes, 57 seconds that the our all the LFP sales and the pack and the cables and BMS must be 32:05 32 minutes, 5 seconds checked before start the production and the during the productions each and every equipments 32:12 32 minutes, 12 seconds have the testing inside the facility they will check each and every parameter like a open circuit voltage, IR 32:19 32 minutes, 19 seconds insulation resistance and safety precaution for the all this BMS and BMU during the our manufacturing process. So 32:28 32 minutes, 28 seconds we just we just we just not only just our group CEO mentioned that we are not just only to have starting only 32:36 32 minutes, 36 seconds manufacturing assembly line. We ensure that the reliability of products because the uh our base battery energy storage 32:43 32 minutes, 43 seconds system life is more than 15 years. So currently 6,000 cycle but in future we are going to provide 10,000 cycle. It 32:51 32 minutes, 51 seconds means greater than 15 years. So how we will ensure because we are we are buying and we are set up we are set up our 32:59 32 minutes, 59 seconds reliability lab inside our factory. So we will we we already hired a highly technical person and uh presently uh 33:08 33 minutes, 8 seconds presently I'm in a China exploring this these things right now. So that we are we are make sure that the every products 33:18 33 minutes, 18 seconds importing from importing to the dispatch of container dispatch the customer each and every parameters we will test it by 33:27 33 minutes, 27 seconds ourself. So is like a day-to-day is like a process test quality test incoming good inspection test as well as 33:35 33 minutes, 35 seconds reliability test. In terms of reliable test we are not going to compromise anything in terms of safety in terms of 33:42 33 minutes, 42 seconds life cycle and we are we are going to get all this international certificate which are ensuring that our product is 33:50 33 minutes, 50 seconds 100% is perfect before launching our product in the India market as well as global market. So from first day we are 34:00 34 minutes going to apply IC certificate and UL 9540A which are very typical components against the battery energy storage 34:09 34 minutes, 9 seconds system. So from start from basic to the end of the end of the life UL test we 34:16 34 minutes, 16 seconds will conduct all the test inhouse as well as if some test is a special testing requirement by the customer we 34:23 34 minutes, 23 seconds will do by third party. So our line is capable our line is capable to handle the 314 as well as the longer cell in 34:31 34 minutes, 31 seconds the future also. So at least 10 years our line can be compatible to run the BSS prismatic cell from 5 megawatt hour container to 10 megawatt hour container. 34:43 34 minutes, 43 seconds Our we we are we are not only this we are not only the manufacturer in India we already have the some uh technical 34:50 34 minutes, 50 seconds tie up in the uh China as well as other countries also. we are going to have some technical transfer with other countries. So make sure that whatever we 34:59 34 minutes, 59 seconds are going to make battery energy storage system because inside the battery energy storage system lot of technology is 35:06 35 minutes, 6 seconds involving like a packed inside the pack is the sales and with a BMU battery management unit system. So we we are we 35:15 35 minutes, 15 seconds are setting our factory with a global standard and even beyond the global standard each and every parameters 35:23 35 minutes, 23 seconds checked inside our factory sir please if you have any question sir please let me know. 35:28 35 minutes, 28 seconds Understood understood. Uh just last one question I have you have indicated investment of around 150 crores in the 35:36 35 minutes, 36 seconds business. Uh I believe even the working capital would be much more than you know 150 crores. uh just want to understand 35:44 35 minutes, 44 seconds uh what your uh internal calculations you're expecting ROC or or return on investment you're expecting and the payback period. 35:55 35 minutes, 55 seconds Uh over to Yes. Yes. Yes. Thank you. So, so we are expecting that the working capital will 36:02 36 minutes, 2 seconds definitely be comparatively higher but the major working capital utilization will be through non-fund based than the fund based side. Secondly, this 150 odd 36:11 36 minutes, 11 seconds crores includes the capeex and the margin for working capital requirement uh to put to put together. We expect 36:18 36 minutes, 18 seconds that the payback will be in the range of 2 to 3 years of time for the capeex whilst ROC we are expecting in high 36:25 36 minutes, 25 seconds double digits in the range of uh 25 to 30%. 36:30 36 minutes, 30 seconds Since lot of players are entering into this space, don't you see uh pressure on the realization on the margin front? 36:38 36 minutes, 38 seconds Yes, you are correct. See what what where we are coming from. There are two three things which I wanted to add to what Dior said. One best is a tailor 36:47 36 minutes, 47 seconds made solution. It is not a standard solution. Every customer will need a different design and different requirement and accordingly you have to 36:54 36 minutes, 54 seconds come up with the design. Why? Just for the example like is similar like cables. 36:59 36 minutes, 59 seconds when you have an installation in location like Khava there is a marcy soil which will require a different 37:06 37 minutes, 6 seconds build whereas if you're coming to say somewhere Rajasthan where is the desert you will require a different build so 37:13 37 minutes, 13 seconds that that is one part second part is your uh temperature profile if you are applying this uh container in the 37:21 37 minutes, 21 seconds Gujarat or Ryasan areas definitely there will be comparatively higher temperatures as compared to the other part of the country where like east 37:29 37 minutes, 29 seconds where the temperatures come down with uh regular uh monsoon rains or pre-mansoon rains also. So it will be a mix of lot 37:36 37 minutes, 36 seconds of things. You have to be uh recruit a lot of technical people to take ensure the power connection systems the battery 37:45 37 minutes, 45 seconds management systems the temperature cooling systems and fire management systems everything put together. So uh though what it seems from a distance 37:53 37 minutes, 53 seconds that it is comparatively assembly business it is much more complicated when you go deeper into it. So from that perspective definitely you can see from 38:01 38 minutes, 1 second an outside area that there will be challenges in terms of pressure in revenue or per unit metrics but uh given 38:09 38 minutes, 9 seconds the demand supply situation and given the complexities involved we feel it is not visible for the next 3 to 5 years of time. 38:18 38 minutes, 18 seconds Understood. Understood. Thank you so much. All the best. Thank you. 38:24 38 minutes, 24 seconds Thank you. The next question is from the line of Manan Pollia from MKP Securities. Please go ahead. 38:34 38 minutes, 34 seconds Yes sir. Thanks for the opportunity. 38:36 38 minutes, 36 seconds Sir, my question is with relation to the best segment since it's a new line of business for us. I'm just curious uh how 38:43 38 minutes, 43 seconds the management thinks of capital allocation in the context of our current business and this business and just uh if you could clarify what sort of 38:52 38 minutes, 52 seconds capital long-term we invest we intend to invest in this business I think that would be great. 38:59 38 minutes, 59 seconds Yes. So uh as far as the capital allocation thought process is concerned see our first objective priority remains 39:07 39 minutes, 7 seconds the compounding industry where we are already expanding. We have already done few expansion and we are already 39:14 39 minutes, 14 seconds expanding on multiple fronts. When uh this is done even we are planning to consolidate few of the units in the western part into a bigger unit. All 39:23 39 minutes, 23 seconds these uh allocations are priority after which whatever excess cash is available with us. We are planning to get into this new business. 39:33 39 minutes, 33 seconds This is point point number one to address your capital allocation thought process. Second when you see the comparatively high working capital or 39:42 39 minutes, 42 seconds whatever scenario is concerned see we have sufficient limits which are lying idle today. So it is not that we are 39:50 39 minutes, 50 seconds going to borrow a fresh it are the limits are already in place and it will be utilized for this business also and 39:58 39 minutes, 58 seconds as far as uh the you can say business profile or margin is concerned that we have already discussed. 40:06 40 minutes, 6 seconds Right sir I understand. Thank you. Thank you. 40:14 40 minutes, 14 seconds Thank you. Participants who wish to ask a question may press star and one on the touchstone telephone. The next question is from the line of Sakit Kapoor from Kapoor and company. Please go ahead. 40:26 40 minutes, 26 seconds Yeah. Namaskar sir. Hope I'm audible. Yes. Namaskar Sakit G. 40:31 40 minutes, 31 seconds Yeah sir. Firstly uh in in terms of the new opportunity where where we have now 40:38 40 minutes, 38 seconds taken a very strong big step in in best how are the realization fixed means what what factors when when we are taking 40:46 40 minutes, 46 seconds this revenue potential or the revenue metrics which we are giving what are the factors that will affect it and and and 40:54 40 minutes, 54 seconds in today's context how are these formulated first speaker if you could just give some uh color on the same 41:03 41 minutes, 3 seconds uh Saki G as Tiwari highlighted just few minutes back that uh today roughly 1 gawatt hour uh is being sold at uh the 41:12 41 minutes, 12 seconds containers for 1 G hour base is sold at roughly 950 odd crores we have uh 41:19 41 minutes, 19 seconds considered a conservative turnover of 800 to 900 crores for the same. So that is from that perspective. The numbers 41:27 41 minutes, 27 seconds are being calculated on the basis of prevailing uh lithium ion prices on the global market and that is what the base 41:35 41 minutes, 35 seconds remains every time for arriving at the right base price. It were comparatively higher few months back. It has now 41:44 41 minutes, 44 seconds liberalized a bit and we hope that it is now getting stabilized because a lot of technology is being involved and upgradation work is being happening. 41:53 41 minutes, 53 seconds Like Tari highlighted we our machines are having capability from 314 kilowatt 42:00 42 minutes hour to as high as 600 close to 600 kilowatt hour. So globally these technologies will keep on upgrading and 42:07 42 minutes, 7 seconds accordingly the prices will adjust. the lithiumion price may not adjust but per kilowatt price will actually drive the 42:15 42 minutes, 15 seconds overall selling price. So we have calculated our turnover based on that and the first full financial year are considering 1 gawatt hour of sales from 42:23 42 minutes, 23 seconds this perspective and said to promote this exercise are the is the government also providing us 42:31 42 minutes, 31 seconds any incentives or any metrics that is coming into play in our the capex that we have factored in? No no no no. So 42:39 42 minutes, 39 seconds what happens in this business is the uh the project announced by whatever agencies whoever is a company probably 42:47 42 minutes, 47 seconds government or non-government there is a viability gap funding which is being given to them because the implementation 42:54 42 minutes, 54 seconds cost versus a viable uh cost of project there is still a gap because of the raw material and other things. So government 43:02 43 minutes, 2 seconds have already allocated 1,000 crores specifically for the current coming financial year for this. Earlier also they have given a lot of viability gap funding for the existing projects which 43:11 43 minutes, 11 seconds have been announced. So we see that this will continue for some time till the time there is entire ecosystem being developed in in the country. So from 43:20 43 minutes, 20 seconds that perspective no direct incentive is coming to us but definitely to the industry it is coming making it viable 43:27 43 minutes, 27 seconds to set up this project and consume or you can say retain the energy which is getting lost today. 43:35 43 minutes, 35 seconds Right sir sir when we look at our uh addition of capacities it was in HFR and 43:42 43 minutes, 42 seconds PVC. So how will these additions impact the the AITA per turn number because I 43:49 43 minutes, 49 seconds think so these are mostly HSFR ispecially specialized but uh PVC compounds would be the commodity part only or the low margin. Correct me there 43:58 43 minutes, 58 seconds sir. How will the AITA trajectory shaping up with uh with the capacity addition that we have done? 44:07 44 minutes, 7 seconds I will request you to address. Yeah. Namaskar. 44:11 44 minutes, 11 seconds See uh on PVC I I would recall uh the uh last corn call there we highlighted that 44:19 44 minutes, 19 seconds uh our capacity addition is driven by the demand anticipated demand which we uh from from the entry of ultratt track 44:28 44 minutes, 28 seconds and uh the sadani because both of them are entering the in the power power cable and wire segment and the first 44:36 44 minutes, 36 seconds task or first objective they are taking is to attack the wire segment. ment because both are backward integrated with the coper availability. So they 44:44 44 minutes, 44 seconds will go for house wiring and within our portfolio of PVC the house wiring segment gives us better margin. So the 44:52 44 minutes, 52 seconds when when we are adding capacity the capacity is basically being added to serve the demand which will come from uh people like Adani and uh ultr techch for 45:01 45 minutes, 1 second building wire where we anticipate better than the average margin and last quarter also when we were having a 45:09 45 minutes, 9 seconds discussion it was clearly visible that we we are improving margin on PVC business. Second part of is that as UL 45:17 45 minutes, 17 seconds we are having XLP product UL certified which drives our margin uh towards uh 45:24 45 minutes, 24 seconds margin enhancement. Same is possible with uh PVC based product also because there are many applications many product 45:31 45 minutes, 31 seconds which go for uh UL approved cables with the PVC application. So for that we are already working one uh such tie up we 45:40 45 minutes, 40 seconds already arranged with UL laboratories for the certification and once that certification is achieved which takes around 6 to 8 months time we'll be able 45:47 45 minutes, 47 seconds to add some uh high margin product to our portfolio of PBC. So uh we'll on on on average we'll we'll improve our margin with new capacity of PBC. 45:59 45 minutes, 59 seconds Okay. So when we uh when we hear your customers they are also looking for backward integration in terms of this 46:07 46 minutes, 7 seconds compounding exercise so that they also want to uh uh maintain their margins also and also on the uh on the on the 46:16 46 minutes, 16 seconds raw material aspect for them. So uh uh what is your what is your current understanding sir the term uh with the 46:23 46 minutes, 23 seconds your customers how how are what percentage of your customers. 46:31 46 minutes, 31 seconds So if you could just give some understand backward integration will always remain a attractive proposition for any customer. Okay. As they attain 46:39 46 minutes, 39 seconds scale they will try to go for backward integration but it is not a easy task and it is not a philosophy which has come say just last two years back or one 46:47 46 minutes, 47 seconds year back or two quarters back. This is a philosophy which is there in place for multiple years but doing the backward 46:54 46 minutes, 54 seconds integration is not that easy as we have been explaining in multiple of our calls that commodity product like PVC for 47:02 47 minutes, 2 seconds in-house consumption for power cable even for building wire. Yes, there a backward integration is a possibility because it is easy product, easy to 47:10 47 minutes, 10 seconds process, not much of IP is involved and not much of capex pattern is involved. 47:15 47 minutes, 15 seconds So yes there are lot of people have gone for backward integration and as the people attain size they will go for backward integration but on the XLP side 47:23 47 minutes, 23 seconds there are products which are low voltage which are I will say commodity product there yes people can go for backold integration but going for specific and 47:32 47 minutes, 32 seconds specialized product where a lot of intricacies are involved there it is not possible for 47:41 47 minutes, 41 seconds most of the customers go to go for a backode integration in India I will say that Today even today the many people have gone for backward integration those 47:50 47 minutes, 50 seconds are still buying large quantities from us the very same product which they are producing themselves. So our expertise 47:57 47 minutes, 57 seconds of providing the solutions to new problems because cable every time you are having a new specification new 48:04 48 minutes, 4 seconds requirement and when you are addressing a new market then people who are doing the in-house compounding they can make commodity but they cannot make product 48:13 48 minutes, 13 seconds which are required for specialized application they do not have that knowhow how to produce for example if you have to put a cable uh in a 48:21 48 minutes, 21 seconds marceland of uh cuts of run okay and what kind of jacketing compound compound will be required there. For that you need to have that kind of uh 48:29 48 minutes, 29 seconds understanding of polymer and chemistry to to design and develop a product they cannot do it. So we are having enough 48:36 48 minutes, 36 seconds opportunity for these segments where we'll continue to grow and and the proof is there that the many people are doing 48:44 48 minutes, 44 seconds backward integration for last five years. They are producing their own compound in various segment but still we are growing continuously and will continue to grow because there are 48:52 48 minutes, 52 seconds additional segment challenging segment where our expertise will keep us ahead right sir and uh uh aren since we have 49:01 49 minutes, 1 second added capacity in in the last quarter and utilization levels I think so you have mentioned at around 80% what would 49:09 49 minutes, 9 seconds be the uh exit uh utilization levels for us for the this year uh the average uh how Will that move up for quarter 49:17 49 minutes, 17 seconds four and uh then for next year any uh the trajectory uh uh we are expecting the average 49:25 49 minutes, 25 seconds utilization to beyond 70% on overall basis even after PVC and HFR addition overall given our existing trajectory 49:35 49 minutes, 35 seconds which we have already announced earlier also we expect this year to be closing somewhere in the range of 200 to 205,000 49:42 49 minutes, 42 seconds metric tons which is uh uh probably uh uh if you see out of 268 it is more than 70%. 49:52 49 minutes, 52 seconds Correct sir and the AITA button basis is uh likely to be in the same trajectory I think so the RM prices have also 50:00 50 minutes slightly moved up with with the variations in the crude oil prices. So uh are these AITA pattern numbers uh sustainable for us going forward also? 50:11 50 minutes, 11 seconds Yes. See if you see the evida pattern for this entire year though there has been a lot of volatility in this financial year for the 9 months and if 50:20 50 minutes, 20 seconds you see the first three quarters the trajectory has been on the positive sides though marginal every quarter around 150 to 200 rupees of growth is 50:29 50 minutes, 29 seconds there but it is on a positive side. So we expect the average which has reached to almost 1,500 5005 15,500 rupees which 50:36 50 minutes, 36 seconds was our overall target between 15500 to 15600 is there and last quarter always remains comparatively better. So we see 50:45 50 minutes, 45 seconds a positive trajectory for the last quarter also. 50:48 50 minutes, 48 seconds Okay. So because two years earlier when we started the call for the fourth quarter there was some discounting from your uh from that was one of one of special quarter. 50:58 50 minutes, 58 seconds Yeah. So that will not so I think so that that anomy you have already corrected for current finances. 51:04 51 minutes, 4 seconds See that happens as it has been explained earlier also that happens only when there is a disruption in the positive side 51:12 51 minutes, 12 seconds and that has been absorbed for that particular year. Now for the next financial years it becomes a regular phenomenon. There is no new disruption. 51:21 51 minutes, 21 seconds See I will I will just I'll just add to this to clarify the disruption that year was in form of entry of HMEL with a 51:30 51 minutes, 30 seconds additional capacity in the second half of the year. So the discounts which came as a bonanza in last quarter were not 51:37 51 minutes, 37 seconds anticipated in the first or second or even third quarter. So now there are no such new entrant at this moment. So we do not see any such disruption. 51:48 51 minutes, 48 seconds Okay sir. Thank you for all the elaborate answers sir. I'll join the queue but the dividend payout sir as on the merit of the board uh we would we as 51:57 51 minutes, 57 seconds investors would like to understand sir why the payout of uh 50 pesa when we have posted EPS of 14 rupees for 9 52:05 52 minutes, 5 seconds months but what was there and how have they deliberated on on this 5 k rupees payout uh to investors as in sir very 52:15 52 minutes, 15 seconds small point and I'm joining the queue sir thank Thank you. Participants who wish to ask 52:24 52 minutes, 24 seconds a question may pressar and one on the touchstone telephone. The next question is from the line of mortaza from Pinpoint Capital. Please go ahead. 52:36 52 minutes, 36 seconds Uh hi sir, good evening. Am I audible? Yes, you're audible. 52:41 52 minutes, 41 seconds Yeah. Uh so I had um like just two questions. First of all, among our top uh wire and cable clients, uh I just 52:50 52 minutes, 50 seconds wanted to understand uh whether the growth is coming from more newer client additions or is it deepening of wallet share with the existing customers? 53:00 53 minutes It is mix of both. 53:04 53 minutes, 4 seconds Uh is it quantifiable a little like vaguely? 53:07 53 minutes, 7 seconds Uh uh not specifically quantifiable immediately for me but definitely it is coming from both. We are adding customers both in the international as 53:16 53 minutes, 16 seconds well as the domestic market. Whilst the existing wallet share from the top few customers remains constant where we have 53:25 53 minutes, 25 seconds a target by in next two years we want to increase our wallet share there as well. Kotari you can add further. 53:32 53 minutes, 32 seconds Yeah see as Arand has rightly said that the growth is coming from both uh these 53:38 53 minutes, 38 seconds areas. Addition of new customers and increasing our uh share with those uh customers, existing customers because as 53:46 53 minutes, 46 seconds we are adding more product uh higherend product and as we are getting the approval with our existing customer for those new product our market share our share with those customers is growing. 53:58 53 minutes, 58 seconds Uh say uh our recent expansion plan we are going to add more capacity for say HFR. So as we are adding capacity of for 54:06 54 minutes, 6 seconds HFR our market share is increasing with our existing customers at the same time we are finding new customers. Same will 54:15 54 minutes, 15 seconds happen with the product for 66 KB XLP also that as we are getting more and more approval as we are adding more and 54:22 54 minutes, 22 seconds more capacity the existing customer will also part with greater share of their business up to 66 KV XLP insulation. 54:30 54 minutes, 30 seconds Similarly we'll be able to get new customers consuming this product. 54:35 54 minutes, 35 seconds Okay, understood sir. Thank you very much. And uh one final question I have is uh that is uh given our strong uh 54:44 54 minutes, 44 seconds market position in XLP and cable compounds uh like how do you see the competitive intensity increasing or how 54:52 54 minutes, 52 seconds is it looking and like uh how how is the company defending or strengthening the market share like especially versus the 54:59 54 minutes, 59 seconds organized players or and the unorganized. I just wanted a little color on that. Thank you very much. 55:07 55 minutes, 7 seconds Yeah. So as far as the products which we are doing only PBC compound we do face competition from say unorganized sector 55:14 55 minutes, 14 seconds players but rest of the segments are mostly uh the competition with the organized sector. That is point number one. Point number two uh as we explained 55:23 55 minutes, 23 seconds in past multiple times that there are product segments where we are having a dominant presence. So there we are continuously maintaining our dominant 55:31 55 minutes, 31 seconds position because that position the dominance comes from your experience and expertise and the product performance demand as you go higher on the voltage 55:39 55 minutes, 39 seconds rating say up to 1.1 KV of course you are having a high intensity of competition but once you go beyond 1.1 55:48 55 minutes, 48 seconds KV towards 11 KV that intensity goes down because none of our competition apart from those four five big international players they are having 55:56 55 minutes, 56 seconds the same amount of experience and track record of supplying defect free product for multiple years for that kind of critical application of 56:05 56 minutes, 5 seconds insulating a conductor for which is carrying a current of 11,000 volts. 56:09 56 minutes, 9 seconds Okay. So 11 KV and above that area this particular aspect is keeping us ahead. 56:15 56 minutes, 15 seconds And the third aspect is the capability to provide the solution. Say as people in India are trying to capture the 56:22 56 minutes, 22 seconds international market more and more with the FDA with Europe and the intensity of exports to USA after this trade deal. 56:30 56 minutes, 30 seconds The people need the product which are of global standard which are not being consumed in India yet like the CPR 56:37 56 minutes, 37 seconds compliance of Europe. it is not applicable in India. So products for that application are entirely different and that those products are not 56:46 56 minutes, 46 seconds available with most of other compounders because that capability is missing and that is what is keeping us ahead against 56:53 56 minutes, 53 seconds any kind of competition and we are delivering the best against both kind of competition. the competition which is coming from the small players who are 57:02 57 minutes, 2 seconds who I cannot say unorganized organized sector but small players not having the same kind of experience and exposure and 57:08 57 minutes, 8 seconds the big players like DA and Borealis we are playing the role in between say we are providing technical solution against 57:16 57 minutes, 16 seconds the small players which is superior and we are providing tailor made solution and flexibility against the big players 57:23 57 minutes, 23 seconds who are mostly selling the product of the self and are having the rigidity so we They are countering competitions on both the ends successfully so far. 57:35 57 minutes, 35 seconds Okay sir. Thank you very much. 57:38 57 minutes, 38 seconds Thank you. Uh just uh one question I missed in from the earlier uh person Mr. 57:44 57 minutes, 44 seconds sake he sought a query on the dividend how we arrived at the so it is just an interim number and if 57:53 57 minutes, 53 seconds you see last year we didn't give any interim but prior to that the similar percentage was announced that remained our benchmark and then we have followed 58:00 58 minutes the same I hope that addressed his queries 58:07 58 minutes, 7 seconds now I hand over the call to Mr. Dave G to con give his concluding statement. 58:13 58 minutes, 13 seconds Thank you all for your time and energy on this call. See uh at this scenario Dave Plastics as you heard from the team 58:21 58 minutes, 21 seconds is well primed to to expand further on our existing uh core business of XLP compounds, HFR compounds which is well 58:30 58 minutes, 30 seconds poised to focus on further export markets with U approvals already in place and there are much more in pipeline which you'll hear in the coming 58:38 58 minutes, 38 seconds quarters. Same with our expansion of capacities which which also in the coming quarters you will hear about. So for the existing core business we are 58:47 58 minutes, 47 seconds very optimistic about uh the demand which is uh a mix from both the ex predominantly from the existing clients 58:55 58 minutes, 55 seconds as well and the addition of new clients as well. And for PVC uh the addition of ultra tech and builder which is a 59:03 59 minutes, 3 seconds welcome addition is also uh going to enhance our uh capacities and market share in the in the PVC production as 59:10 59 minutes, 10 seconds well. As far as best is concerned as you all know the this uh renewable sector is a sunrise sector and the government's uh 59:19 59 minutes, 19 seconds target is 500 megawatt up till 2030. So there is so much demand in the renewable sector and so much scope in the 59:27 59 minutes, 27 seconds renewable sector which we synergistically want to tap into also uh the from discoms right up till the inc 59:37 59 minutes, 37 seconds uh players. So this has a wide range of applications and use which will uh continue uh to have a good demand on the 59:45 59 minutes, 45 seconds best storage uh business as well. So overall I think we are very optimistic on uh the coming uh many years and we 59:54 59 minutes, 54 seconds are well poised for uh good amount of substantial growth. So I thank you all again for joining us and if you have any other questions and queries please let us know. All right. Thank you. 1:00:07 1 hour, 7 seconds Thank you. On behalf of Go India Advisor, that concludes this conference. 1:00:13 1 hour, 13 seconds Thank you for joining us. You may now disconnect your lines.