Elin Electronics Limited — Q4 FY26

Elin Electronics Limited Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=Hmm2ykjyvkU Published: 3 weeks ago

0:01 1 second Good evening ladies and gentlemen. I'm Akash, moderator for the conference call. Welcome to Ellen Electronics Limited Q4 FY26 earnings conference 0:09 9 seconds call. As a reminder, all participants will be in listen only mode and there'll be an opportunity for you to ask questions after the presentation 0:18 18 seconds concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone telephone. 0:26 26 seconds Please note this conference is being recorded. I would now like to hand over the floor to Mr. Goulsen Singh from Surid Secretaries. Thank you and to you sir. 0:35 35 seconds Uh thank you sir. Good evening and very warm welcome to everyone. On a behalf of a Suni Securities I welcome you all to 0:42 42 seconds Ellen Electronics Limited Q4 and FI26 earning conference call. Today we have with us a management represented by Mr. 0:49 49 seconds Kamill Setia managing director and Mr. 0:52 52 seconds Akas Satia head of strategy. We thanks Elen Electronics Limited for giving us the opportunity to host the call. I will now like to hand over the floor to the 1:00 1 minute management for their opening remarks post which we will open the floor for Q&A. Thank you and over to you Akash sir. 1:09 1 minute, 9 seconds Thank you very much Golan. Uh good evening ladies and gentlemen. This is Akash Satya. We also have on call today our managing director Mr. Kamal Satya. 1:18 1 minute, 18 seconds Uh Mr. Sanjiv Satya could not attend the call due to some last moment emergency. 1:23 1 minute, 23 seconds So I apologize on his behalf. Thank you for joining our earnings call for the fourth quarter and full fiscal year ending March 2026. 1:32 1 minute, 32 seconds Coming to our overall performance for the quarter, operating revenue for the quarter was rupes 324 crores against 1:39 1 minute, 39 seconds rupes 315 crores in the same period last year up 3% on a yi basis. Consolidated 1:46 1 minute, 46 seconds IITA for the quarter was INR 6 crores against INR 20.2 crores in the same period last year. This sharp reduction 1:56 1 minute, 56 seconds is primarily attributed to a sharp surge in raw material costs across categories driven by disruptions in supply chain 2:04 2 minutes, 4 seconds due to the war in the Middle East and challenging geopolitical situation. This has impacted gross margins for the quarter by 390 basis points. 2:14 2 minutes, 14 seconds Consolidated loss for the quarter was8 crores against a profit of 17.2 crores in the same period last year. Our 2:23 2 minutes, 23 seconds liquidity position remains strong with a net cash balance of INR 70 crores as at March 2026. 2:31 2 minutes, 31 seconds Our working capital position is at net 59 days. Of this inventory days was higher than anticipated as we had to 2:39 2 minutes, 39 seconds stock up on raw material inventory in March 2026 to safeguard against potential shortages due to the 2:46 2 minutes, 46 seconds challenging geopolitical situation. Our capeex in FI26 was at INR 32.5 crores 2:53 2 minutes, 53 seconds across all our existing facilities excluding Bihari. 2:57 2 minutes, 57 seconds We generated cash from operations of INR 40.6 crores in FI26 against INR 16.7 crores in FI25. 3:08 3 minutes, 8 seconds Before sharing our segment wise results, I would like to set out the impact of the war and the challenging geopolitical situation that we have faced during the 3:16 3 minutes, 16 seconds quarter. As you all know, the war has led to a sharp spike in crude oil prices, which has in turn led to a sharp 3:23 3 minutes, 23 seconds spike in polymer prices as well as a sharp depreciation in the USD INR rate. 3:29 3 minutes, 29 seconds This combined basket constitutes 30% of our input cost leading to a sharp spike in our RMC cost. This spike has happened during the month of March 2026. 3:41 3 minutes, 41 seconds Most of our customers are on monthly quarterly price settlement. So this increase in RMC had to be completely absorbed by us. 3:50 3 minutes, 50 seconds Now I would like to share with you the performance and strategy in each of our business verticles. In lighting fans and the switch segment, the revenue for the 3:59 3 minutes, 59 seconds quarter was INR 94 crores against INR 86.3 crores in the same quarter last year. This was primarily driven by a 4:08 4 minutes, 8 seconds strong increase in revenue from the fan segment. 4:11 4 minutes, 11 seconds The LED lighting segment X flashlights declined from INR50 crores last quarter to INR 39.5 crores in the current 4:20 4 minutes, 20 seconds quarter. Price decline is now completely behind us. Small price increases have been undertaken with customers. The 4:28 4 minutes, 28 seconds revenue run rate on a quarteronquarter basis is on an improving trajectory. As on date, we are serving five new 4:36 4 minutes, 36 seconds customers in lighting in addition to signify. We reiterate that we expect double-digit growth in our lighting business in fiscal 2027. 4:46 4 minutes, 46 seconds Moving on to our fans business, we have seen strong growth of 67% in our fans business on a Y basis. This has 4:54 4 minutes, 54 seconds primarily been driven by our BLC ceiling fans and TPW fans business. We are also working on diversifying our customer 5:02 5 minutes, 2 seconds base and adding new customers. We expect this strong growth momentum to continue in Q1 as well. Our TPW business is also 5:12 5 minutes, 12 seconds showing good demand. We are also happy to share that our export business of fans which had stopped in August 2025 5:20 5 minutes, 20 seconds due to tariff related issues has restarted in May 2026 although with small numbers. We expect this to scale 5:28 5 minutes, 28 seconds up gradually over the course of the year. Moving on to the home appliances segment. Revenue increased from INR 87.1 5:37 5 minutes, 37 seconds crores last quarter to INR 94 crores this quarter. Kitchen and home care revenue was flat on a year-on-year 5:44 5 minutes, 44 seconds basis. This would have been a bit higher, but we deferred some orders from March 2026 due to surging raw material 5:52 5 minutes, 52 seconds costs. Personal care segment was up 27% YI on the back of better demand across haird dryers, sterilizers, and hair brushes. 6:02 6 minutes, 2 seconds Moving on to the fractional horsepower motor segment, revenues declined from INR 51 crores in the last quarter to INR 45.7 crores in the current quarter. 6:12 6 minutes, 12 seconds Please note this segment reflects only third party sales. We will be launching cooler motors and BLC chimney motors 6:19 6 minutes, 19 seconds this year for both third party sales as well as captive consumption towards finished product. 6:26 6 minutes, 26 seconds Overall the quarter has been very tough from a margin perspective. The spike in RMC and depreciation of INR against the 6:34 6 minutes, 34 seconds USD caused EITA margins to compress sharply. Even labor labor availability was somewhat of a challenge in the 6:41 6 minutes, 41 seconds quarter gone by. Further, you would also have read that minimum wage has been revised upwards sharply in Uttar Pradesh 6:49 6 minutes, 49 seconds resulting in a in an effective increase of 26% in April versus March. This was 6:56 6 minutes, 56 seconds done on 14th of April 2026 with effect from 1st April 2026. 7:02 7 minutes, 2 seconds All of this combined has resulted in an unprecedented situation where there is pressure on both material and labor and 7:10 7 minutes, 10 seconds therefore pricing has had to be increased between 10 and 18% just to sustain earlier margins. Given the 7:19 7 minutes, 19 seconds substantial quantum of increase in material and the sudden unexpected increase in labor minimum wage midmon, 7:26 7 minutes, 26 seconds we expect that the price trans transmission to be fully passed on to customers only by June 2026. 7:35 7 minutes, 35 seconds As on the current date, polymer prices have cooled off a bit from highs reached in March 2026, although the USD INR rate continues to stay at elevated levels. 7:46 7 minutes, 46 seconds Now I would like to share our guidance for FI27. 7:50 7 minutes, 50 seconds We expect a revenue growth of 15% on a year-on-year basis. 7:55 7 minutes, 55 seconds However, on EIA, we will be able to share the guidance perhaps only by next quarter as the current input cost situation is extremely volatile and 8:03 8 minutes, 3 seconds difficult to predict. Apex for the year will be between INR 70 and 75 crores split as INR 45 crores for the Bihari 8:12 8 minutes, 12 seconds facility and the balanced 25 to 30 crores for growth of the existing business and factories. Once the Bari facility is stabilized in 2 years from 8:21 8 minutes, 21 seconds starting, this will also help us drive up our return on capital employed. 8:26 8 minutes, 26 seconds Regarding construction of the Bihari facility, it is largely complete. We are in the process of fitting out the facility with machines and assembly 8:34 8 minutes, 34 seconds lines over the course of June 2026 after which there will be test runs and commercial production starting in the 8:43 8 minutes, 43 seconds end of July 2026 or the beginning of August 2026. 8:47 8 minutes, 47 seconds A quick update on the total project cost. The total project cost is estimated at INR 100 crore. Of this 8:55 8 minutes, 55 seconds phase 1 is at INR 67 crores of which 26 crores has been spent and lying in 9:02 9 minutes, 2 seconds capital work in progress. Balance spend of INR 41 crores towards completion of phase 1 spending. Due to the slight 9:10 9 minutes, 10 seconds delayed commissioning of the facility, we expect a revenue of INR80 crores in FI27 against an earlier estimated revenue of 140 crores in FI27 from Badi. 9:22 9 minutes, 22 seconds However, the differential revenue will be done in Gazyabad itself. So there will be no loss of revenue to the company as a whole. Reiterate that as 9:30 9 minutes, 30 seconds per current estimates, revenue potential of the plant is 550 crores. Further, we expect a steadystate embitter of 7% for 9:39 9 minutes, 39 seconds the plant which should be achieved in the third year of operations. At these levels, ROC for the plant will be 20%. 9:48 9 minutes, 48 seconds With this, we conclude our opening remarks and can now open the floor for Q&A. Thank you. 9:55 9 minutes, 55 seconds Thank you, sir. 9:57 9 minutes, 57 seconds Ladies and gentlemen, we will now begin the question and answer session. If you have a question, please press star and one on the telephone keypad and wait for 10:06 10 minutes, 6 seconds your turn to ask the question. If you would like to withdraw your request, you may do so by pressing star and one again. 10:14 10 minutes, 14 seconds Ladies and gentlemen, if you have a question, please press star and one on the telephone keypad. 10:21 10 minutes, 21 seconds The first question comes from the line of Mr. Kunal Ma from Incred Equities. Please go ahead sir. 10:27 10 minutes, 27 seconds Hi, very very good afternoon uh Akash and Kamula. Uh I have been tracking the company since a while and we've seen uh 10:36 10 minutes, 36 seconds you know the margins being in stress earlier. However, I think uh this year we saw some good recovery in margins but 10:45 10 minutes, 45 seconds because of the uh the raw material price increase Q4 took a big hit. So I think 10:53 10 minutes, 53 seconds we have revised down our revenue guidance and I think margins also will be uh compressed for this year as well 11:02 11 minutes, 2 seconds as the new facility ramp up. So how are we gauging the uh macro environment is the demand uh you know uh like quite 11:12 11 minutes, 12 seconds neutral how it was last year versus this year uh also because of the El Nino uh current effect. So how are we seeing the 11:20 11 minutes, 20 seconds demand in terms of uh ACS and coolers which coolers which we are going to launch as well as you know demand for chimneys uh which we have uh be starting 11:30 11 minutes, 30 seconds in the new facility. So is there the demand subdued is that the reason we are not ramping it up faster and is there 11:38 11 minutes, 38 seconds any upside uh to the current guidance if the situation improves? 11:46 11 minutes, 46 seconds Uh so thank you Kunal. uh fair point uh or fair points that you've raised. Uh I'll just take it you know one by one. 11:53 11 minutes, 53 seconds Uh so on your first point on uh you know whether the current uh scenario uh you know we are seeing some sort of demand 12:00 12 minutes compression. Uh look uh the reason we have uh revised slightly revised downward uh the guidance for fiscal 27 12:09 12 minutes, 9 seconds is that uh like I mentioned we have had to undertake uh fairly large price increases. I mentioned in my opening remarks that price increases have been 12:18 12 minutes, 18 seconds to the tune of as low as 10% to as high as 18%. Now uh you know when you have such large price increases uh one is not 12:26 12 minutes, 26 seconds quite sure of how you know that will affect demand itself and since we are pretty much in the beginning of the year it is very hard to uh forecast how this will impact uh you know revenue for us. 12:38 12 minutes, 38 seconds So we've just been a little bit conservative uh you know to start with uh of course like you said uh you know if there is a quick resolution uh you 12:47 12 minutes, 47 seconds know of the war uh basis which uh you know one will see crude price uh you know crude oil prices come down uh and 12:55 12 minutes, 55 seconds then uh you know polymer prices especially will come down the rupee hopefully should appreciate a little bit all of those would have a positive 13:03 13 minutes, 3 seconds impact uh on us and there could be some sort of uh upside to our to our revenue guidance. 13:08 13 minutes, 8 seconds But those matters frankly are not in our hands. So you know one will have to kind of uh wait and watch how it it pans out 13:17 13 minutes, 17 seconds right we almost 2 months uh into the into the fiscal 2027. Uh so we just wanted to be a little bit uh you know 13:24 13 minutes, 24 seconds conservative on the conservative side rather than giving a very aggressive guidance and then cutting uh cutting it down uh midway. Does that does that answer your question? 13:34 13 minutes, 34 seconds Yes. Uh also one more thing on the BIS norms which were to be implemented and 13:40 13 minutes, 40 seconds you know adhered to by September 2026 is that is the timeline still the same or is there more relaxation by the government on that? 13:50 13 minutes, 50 seconds So as of now it is still September 2026. 13:52 13 minutes, 52 seconds Uh now whether this itself gets relaxed uh we don't know yet. uh probably closer to the uh date you know we might we 14:01 14 minutes, 1 second might have an update but as of now it's it's September 2026 okay and will we be having any uh plan 14:09 14 minutes, 9 seconds visit for the new Bardi facility uh once it's commissioned sorry I didn't catch your question uh can you just 14:16 14 minutes, 16 seconds No will be having a plant visit for the new Bardi facility we are we are going to plan that but that is like I said we are expecting 14:25 14 minutes, 25 seconds commercial production only to start by end of July or maybe uh you know early August. So only once uh you know commercial production starts uh will be 14:34 14 minutes, 34 seconds will we be planning that. So it is still uh you know maybe two or 3 months away. 14:38 14 minutes, 38 seconds So once uh you know that is done we will certainly be planning uh planning a visit for uh for the uh financial analyst community at large. 14:48 14 minutes, 48 seconds And I know you mentioned ITA tough to give guidance but any range if you can give if it will you know uh not be below 14:57 14 minutes, 57 seconds a certain range or not be beyond a certain range. 15:01 15 minutes, 1 second uh Kunal you know uh I mean just uh you know allow me this uh quarter not to give you a range because we don't want 15:10 15 minutes, 10 seconds to give you a range and then you know uh it's it's very very difficult right now you would you know if you've been tracking the company closely so you will appreciate uh that these are you know uh 15:18 15 minutes, 18 seconds unprecedented uh you know kind of kind of situation so just just bear with us maybe by next quarter we will certainly be in a position to give you give you 15:26 15 minutes, 26 seconds some sort of update sure thank you I'll call back in with Thank you. 15:34 15 minutes, 34 seconds Thank you sir. The next question comes from the line of Mr. Rahan Lji from Coherent Wealth. Please go ahead. 15:40 15 minutes, 40 seconds Hi, thank you for the opportunity. I wanted to understand more on the RMC part. Um I think you primarily are uh 15:47 15 minutes, 47 seconds affected by polyropylene prices and that I think you'll purchase from Reliance. Is my understanding correct? 15:55 15 minutes, 55 seconds We have uh I mean your understanding that PP we buy from Reliance is correct but it's not only PP we buy PC we buy ABS we buy nylon we buy PBT so it's it's 16:03 16 minutes, 3 seconds it's a full range of plastics per say not only and what would be the largest component 16:10 16 minutes, 10 seconds of your uh raw material I mean in a entire raw material basket or in a plastic 16:17 16 minutes, 17 seconds no in a in your overall basket what would be the largest drag for this kind of numbers 16:24 16 minutes, 24 seconds Uh so uh look uh we we have uh four key raw materials. So there is the whole range of plastics, there is uh steel, 16:33 16 minutes, 33 seconds there is uh aluminium and then there is copper. So these are the four kind of 16:38 16 minutes, 38 seconds key uh uh you know uh RMC kind of components that we that we do uh 16:47 16 minutes, 47 seconds of which this quarter we have been particularly affected by the whole polymer basket as well as uh to a large 16:54 16 minutes, 54 seconds part uh aluminium even aluminium saw a pretty sharp increase. uh and then uh you know our imports are about uh of the 17:02 17 minutes, 2 seconds total you know consumption that we have uh approximately 15% is imported 85% is 17:09 17 minutes, 9 seconds uh kind of on that 15% uh even the depreciation of the rupee against the dollar uh hit us hit us quite hard 17:19 17 minutes, 19 seconds so Akash just to understand would this ideally be a bottom kind of a margin because at an operating level at this scale of 13400 00 crores of topline. 17:30 17 minutes, 30 seconds It's very hard to understand how can the margins be so fragile for a company that is so large and reputed. So would it be fair to gauge that this would be 17:38 17 minutes, 38 seconds technically a trough or you expect that even if mar if the RM prices stay as is you could report further eida percentage 17:47 17 minutes, 47 seconds terms lower or how would it work going forward because let's assume that the RM prices stay as is at the moment even if 17:55 17 minutes, 55 seconds you get a price hike let's say 90 days from today because I understand it cannot happen overnight and that's only 18:01 18 minutes, 1 second fair but what's a what's what would be a base understanding at a company level because the scale is pretty large and 18:10 18 minutes, 10 seconds the impact can be pretty hard if you're not um you know taking the right amount of uh cost measures in a way. 18:20 18 minutes, 20 seconds Look uh to your question uh directionally is this uh probably towards the lower end uh we certainly 18:28 18 minutes, 28 seconds hope so. We certainly think so. Uh is there a guarantee for the same? Uh unfortunately, you know, this is business. There are no guarantees. Uh that's that's point point number one. 18:38 18 minutes, 38 seconds Point number two is uh if you've been following our company, we've been pretty consistent uh in terms of how revenue uh passroughs or pricing passroughs happen. 18:49 18 minutes, 49 seconds Uh so with about maybe 2/3 of our customers, it's on a quarterly basis. So 18:56 18 minutes, 56 seconds the pricing of Jan, Feb, March for example is applicable on the April, May, June price settlement. Therefore there is a lag of a quarter and uh on the 19:05 19 minutes, 5 seconds balance one/ird it is done on a monthly basis. So for example for the uh for current month pricing we would be relying on last month's uh average 19:14 19 minutes, 14 seconds pricing. Right? That's how it works. Uh also in my opening remarks I've been transparent that because you know we've 19:21 19 minutes, 21 seconds seen such large price increases those full pricing passroughs did not happen in the month of April itself. I 19:28 19 minutes, 28 seconds mentioned that you know we expect the full pricing to happen only by June. So of that you know anywhere between 10 to 18% that we've had to kind of uh you 19:38 19 minutes, 38 seconds know undertake uh price increases. U a large bulk of it has happened in April and May. uh but some small bit still 19:45 19 minutes, 45 seconds remains to be passed on in in June. So only once that transmission is complete will we be able to kind of get back to 19:53 19 minutes, 53 seconds uh to to sustaining sustaining margins due to the March uh uh March March price increase. I hope that clarifies your your question. 20:03 20 minutes, 3 seconds Yeah. So basically you're saying that if you once this price increases happen at a at your customer level you would move 20:10 20 minutes, 10 seconds back to about a 23 24% gross margin. Is that fair understanding? That's right. 20:16 20 minutes, 16 seconds And that can that will be that will be applicable for the June quarter or will it take a Q2 also lag? Like will we see the full effect in Q2 or Q1? 20:26 20 minutes, 26 seconds No, exactly. So it will be applicable for the month of June. In the month of June, we would be at that 24 kind of percent gross margin. But uh for April 20:33 20 minutes, 33 seconds and May, it would be lower because that complete price transmission did not happen. what should have logically probably happened immediately in the 20:41 20 minutes, 41 seconds first week of April did not happen. So Q1 also margins will be under pressure although it will not be under this kind 20:49 20 minutes, 49 seconds of pressure but it will still be under uh under pressure uh overall. 20:55 20 minutes, 55 seconds Okay. And considering that you're you're scaling up your fans business and your lighting business which are technically 21:01 21 minutes, 1 second margin accredititive uh is it safe to say that if things normalize and we hope it normalizes faster than ever um would 21:11 21 minutes, 11 seconds we see much better margins at a company level like about a six odd percent kind of eBay does is it possible at only 21:19 21 minutes, 19 seconds those two segments I'm asking those two segments specific. 21:24 21 minutes, 24 seconds Oh uh lighting is probably one of the I mean uh nothing to do with the war per se but even otherwise lighting was under 21:32 21 minutes, 32 seconds uh you know maximum pressure even pre-war like I'm saying nothing to do with the war. Uh what has happened that that happened due to uh you know kind of 21:42 21 minutes, 42 seconds irrational competition in the in the sector. Uh what has happened is that you know there was massive price erosion. So that price erosion is completely behind 21:50 21 minutes, 50 seconds us now. In fact uh you know in the month of Feb itself we started to undertake small price hikes and those price hikes 21:57 21 minutes, 57 seconds will only get uh slightly larger as time uh uh you know goes by. Uh so I do 22:04 22 minutes, 4 seconds expect that uh maybe currently if you look at our lighting business just in terms of gross margin we would be you know on a blended basis as of date maybe 22:13 22 minutes, 13 seconds around 15 odd percent. uh we expect that to move to you know 18 19% maybe over 22:19 22 minutes, 19 seconds the course of the next uh you know two 2 and a half months maybe 3 months okay so that would automatically also in 22:27 22 minutes, 27 seconds your gross more than 24 and then in Q2 onwards I mean I wouldn't say for now for you to 22:35 22 minutes, 35 seconds subscribe to more than a 24% uh you know valuation of gross margin I think that is what you should uh assume because uh 22:42 22 minutes, 42 seconds you know at some level uh just increasing pricing does have some effect on uh customer demand as well. So one has to uh you know kind of finally 22:50 22 minutes, 50 seconds balance how much a price hike to take uh while keeping uh you know customer demand uh fairly robust and active 22:58 22 minutes, 58 seconds and uh since you guys have been fairly uh prudent and with your working capital 23:06 23 minutes, 6 seconds how do you procure your inventory like what like is it like order based or because I'm sure your customers give you like a yearly or a quarterly or 23:14 23 minutes, 14 seconds semiannually outlook of what they want to procure from you. So considering all that how do you purchase your inventory? 23:22 23 minutes, 22 seconds See customer orders typically customers share with us uh what they call an annual operating plan uh to help us uh you know prepare our resources uh for 23:31 23 minutes, 31 seconds the full full fiscal ahead. Uh but that is non-binding. 23:35 23 minutes, 35 seconds Uh what is uh confirmed is a you know a monthly kind of PO with a quarterly 23:42 23 minutes, 42 seconds forecast. So there is a 3-month rolling forecast with uh monthly confirmed POS uh basis which we do a uh a procurement 23:51 23 minutes, 51 seconds I mean we we you know kind of make a procurement strategy basis so it's a it's a 90-day odd procurement 23:59 23 minutes, 59 seconds strategy 90day with confirmed procurement only 30 days but uh I mean even we have to uh 24:06 24 minutes, 6 seconds you know give our kind of supplier some sort of uh outlook and visibility so we We we share the basis the uh you know 24:15 24 minutes, 15 seconds customer orders that we get we share our suppliers also our procurement strategy on a rolling basis but with confirmed orders only for 30 days. 24:23 24 minutes, 23 seconds Okay. And the current facilities that we have across Gazyabad, Goa etc. What would be the capacity utilization and percentage term? 24:33 24 minutes, 33 seconds From our existing three facilities we could be uh somewhere in the 60 kind of range. So we are uh currently at 24:42 24 minutes, 42 seconds uh whatever 1288 I mean roughly 1300 I mean somewhere around the 77 78 79% 24:52 24 minutes, 52 seconds kind of kind of okay and for the for the new facility which is coming up at Bardi what kind of uh like are we do we need to do more 25:00 25 minutes hiring at at or is the hiring done like labor and everything is organized like is it already in our fixed 25:09 25 minutes, 9 seconds sure so uh so just in terms of uh you know hiring at a white collar level versus a blue collar level I'll just 25:16 25 minutes, 16 seconds specify both uh so first in terms of you know employees uh so we've already put in place uh you know a basic team which 25:24 25 minutes, 24 seconds is uh you know like a like a GM level person uh and for plant maintenance and so on and so forth uh procurement will 25:33 25 minutes, 33 seconds be centralized uh within within the Gazyabad facility itself so we don't really expect uh you know to deploy uh 25:40 25 minutes, 40 seconds more people on the purchase uh purchase and purchase planning side. Uh in terms of labor uh this will be largely via 25:48 25 minutes, 48 seconds contract. So we've uh firmed up uh the contractors that we will work with but obviously uh you know there is no per se 25:55 25 minutes, 55 seconds labor uh availability right now in terms of I mean we've not finalized the labor uh availability. We've given the 26:02 26 minutes, 2 seconds contractors a heads up and uh by August once we start commercial production we expect that uh you know there should not 26:10 26 minutes, 10 seconds be too much of a problem. We are in any case well located within a fairly large electronics cluster. So there are multiple other factories uh you know 26:18 26 minutes, 18 seconds that that work in the same sphere or same line of work. So should be should be okay and the tentative break even for that 26:26 26 minutes, 26 seconds plant because I understand it won't be eida positive from day one but at an 80 cr topline which you've guided for in 26:33 26 minutes, 33 seconds FY27 would that be break even at a at the plant level alone 26:41 26 minutes, 41 seconds we will definitely be positive uh pat would be would be touch and go uh I think the break even is closer to 120 if 26:50 26 minutes, 50 seconds I'm not wrong uh but that also then depends a little bit on the on the sales mix, right? Because certain products have a slightly better gross margin or 26:58 26 minutes, 58 seconds certain have a slightly lower gross margin. Uh so I can you know we can just circle back uh maybe offline for a more deeper understanding on that broadly. 27:11 27 minutes, 11 seconds Sure. 27:11 27 minutes, 11 seconds Understood. Thank you so much. Thank you for answering my questions. Good luck. Sure. Thank you. 27:18 27 minutes, 18 seconds Thank you so ladies and gentlemen. If you have any questions, please press star and one on your telephone keypad. 27:26 27 minutes, 26 seconds I repeat, if you have any questions, please press star and one on a telephone keypad. 27:32 27 minutes, 32 seconds The next question comes from the line of Mr. Zakil, an Indonesian minister. Please go ahead. 27:40 27 minutes, 40 seconds Hello. Yes, sir. 27:43 27 minutes, 43 seconds Sir, good afternoon. And uh I think um it's a decent set of numbers and a tough time. Uh sir, you have given a guidance 27:51 27 minutes, 51 seconds for a 15% growth in topline uh for the current year. Um how would this be divided sir? I mean 28:00 28 minutes broadly what we do is one/ird from lighting, one/ird from motors and one third from other appliances. Would it would it broadly fall in that um kind of a uh model sir? 28:14 28 minutes, 14 seconds So uh the numbers that you have given uh you know kind of used to be the norm uh 28:20 28 minutes, 20 seconds a little bit earlier uh but now the mix has somewhat changed. Uh so firstly the numbers that you're sharing are obviously within the EMS basket or the 28:28 28 minutes, 28 seconds finished goods basket. We have a components business that is approximately 20% of our total topline. 28:35 28 minutes, 35 seconds uh so of the total top line 80% is finished good stroke EMS and the balance 20% is uh the components uh business of 28:44 28 minutes, 44 seconds the 80% broadly uh you know there is uh lighting and fans there is appliances and then there are motors so lighting 28:52 28 minutes, 52 seconds and fans and appliances uh you know would be the overwhelming majority as on uh the end of this fiscal 28:59 28 minutes, 59 seconds motors is down to approximately 17 18% of the total revenue uh that Okay. 29:05 29 minutes, 5 seconds Uh so and we we expect that to to kind of continue. So lighting and fans and appliances would be uh would be the 29:14 29 minutes, 14 seconds major revenue revenue drivers going going forward. 29:18 29 minutes, 18 seconds And sir uh of course we are going through a um tough period in terms of input uh prices and stuff like that. But 29:27 29 minutes, 27 seconds uh during the next 2 3 years what would be your aspirational AITA margins? Uh I 29:34 29 minutes, 34 seconds think we we've done a high of six 6 and a half%. So would would you feel that that is a decent AITA margin to expect in the longer term sir? 29:45 29 minutes, 45 seconds Uh aspirational would be higher than that. Uh 6 6 and a half% is definitely uh achievable. aspirational would be 29:52 29 minutes, 52 seconds closer to 8% but uh when I say 8% I also say that in the context of your question being aspirational it is not easy to do 30:00 30 minutes 8% at all uh what is realistic is probably uh you know 6 6 and a half% in normal times uh if you do a phenomenal 30:08 30 minutes, 8 seconds job then you could get to the 7 and 1/2 8% mark and how do we how does how do we compete 30:15 30 minutes, 15 seconds with China on on the finished product and do you think these kind of products can even be made at lower than these 30:23 30 minutes, 23 seconds kind of margins by anyone at all. Sir, uh how do we compete with China? So 30:31 30 minutes, 31 seconds there are two three points. Uh one of course the government has been uh you know supportive of manufacturing uh by putting in you know BIS norms uh 30:40 30 minutes, 40 seconds QC orders uh uh you know so on and so forth. That is that that is point one. 30:45 30 minutes, 45 seconds point.2 are uh you know labor rates are uh a lot more competitive than uh than 30:53 30 minutes, 53 seconds than China although their productivity in all uh fairness is is much more superior to to India. Uh so I think 31:03 31 minutes, 3 seconds those are the two important points when it comes to China versus India also. So now what is happening is the way uh the rupee is depreciating uh against the 31:12 31 minutes, 12 seconds dollar and therefore the yuan uh it is not going to be easy to uh to import because imports continuously keep 31:19 31 minutes, 19 seconds getting more expensive day by day right uh so I think those are my thoughts uh when you talk about the whole China uh 31:27 31 minutes, 27 seconds China angle uh and then sorry you had one more question which I just missed I mean can these goods what you do even 31:34 31 minutes, 34 seconds be sold at the lesser than the current going AITA margins you are doing or even even even six 6 and a half%. I don't 31:43 31 minutes, 43 seconds think going forward anyone can even supply and and stay in the market lesser than this sir at 6 6 and 1/2% at least 31:53 31 minutes, 53 seconds sir you asking me a question which is very difficult to answer because I mean I I cannot uh really say what other 32:01 32 minutes, 1 second people will do or will not do. uh competition can be uh you know rational competition is good for everyone irrational competition is terrible for 32:10 32 minutes, 10 seconds everyone uh we've seen u you know a phase of irrational competition in the lighting space uh so uh you know can 32:18 32 minutes, 18 seconds people supply at lower prices people have done it so I I won't say no but uh logically what you were saying is 32:25 32 minutes, 25 seconds correct but uh unfortunately uh you know sometimes uh reality doesn't always work according to logic 32:34 32 minutes, 34 seconds Thank thank you sir. Best wishes for the year. Thank you. 32:39 32 minutes, 39 seconds Thank you so much sir. The next question comes from the line of Mr. Sahil Dshi from Think Wise. Please go ahead sir. 32:46 32 minutes, 46 seconds Uh hi good afternoon and thank you for the opportunity. Uh just firstly Akash just wanted a clarification on the employee cost. So I understand the other 32:55 32 minutes, 55 seconds raw materials and the the environment makes it difficult to predict but at least on the employee cost if you can guide uh given the wage hike what's the 33:04 33 minutes, 4 seconds normalized level and what kind of expense increase should we uh think for this year. 33:10 33 minutes, 10 seconds Look uh so for this year if you've seen the full year I think uh we've uh clocked in an improvement on a full year 33:17 33 minutes, 17 seconds basis of almost 100 basis points. uh I mean if you look at FI25 versus FI26 so 25 we were closer to 14 odd percent or 33:25 33 minutes, 25 seconds slightly larger slightly higher uh this year we've uh come in at uh I think closer to 13% right uh so that is that 33:33 33 minutes, 33 seconds is 0.1 uh directionally speaking uh you know we want to get to u uh you know uh 33:40 33 minutes, 40 seconds sub 12% closer to 11 12%. That is the number that we are working with. Uh, of course that is driven by some sort of 33:47 33 minutes, 47 seconds uh, you know, automation uh, that helps you reduce reliance on labor and makes you uh, kind of protected from these 33:55 33 minutes, 55 seconds these minimum wage increases. Uh, two is of course the base itself expanding. Uh so you know when your turnover in 34:02 34 minutes, 2 seconds totality goes up that helps you uh you know rationalize uh especially your uh you know costs on the indirect side 34:10 34 minutes, 10 seconds because you only incur direct labor. And third is we are uh you know kind of uh working a little bit hard to review our 34:17 34 minutes, 17 seconds indirect cost structure and see where where optimization uh uh you know can be can be done. uh but uh to your point uh 34:26 34 minutes, 26 seconds precisely so our direct labor costs are uh of the total employee cost of 30 odd%. Our direct labor cost is 34:34 34 minutes, 34 seconds approximately 8 and 1/2 between 8 and a half and 9%. 34:38 34 minutes, 38 seconds uh with the balance being indirect. So on that uh 8 and a half 9% uh which is pretty much the norm across all all the 34:47 34 minutes, 47 seconds three facilities uh the minimum wage just for UP has gone up by uh almost 25 or 26%. Right? Uh so we are working with 34:56 34 minutes, 56 seconds uh customers uh to get that pricing increase which we expect you know should be done by June. Once that is done then 35:04 35 minutes, 4 seconds uh uh you know not only uh you know 13% but we should be able to get to that uh you know 12 12 and a half% this year. Uh 35:12 35 minutes, 12 seconds but of course like I mentioned uh Q1 will be will be under pressure. Uh so don't look at uh this on a you know 35:19 35 minutes, 19 seconds immediate quarter basis but more from an annual kind of kind of basis. 35:26 35 minutes, 26 seconds Sure this helps. uh just secondly in terms of the motor business uh you know though you've called out there was some impact because the [clears throat] gas 35:34 35 minutes, 34 seconds prices but uh you know the entire year quarteron quarter we've seen uh you know the growth has been fairly muted and uh 35:43 35 minutes, 43 seconds you know if you see we think of Ellen the you know the core strength is motorists uh so what's really transpiring here strategically what do 35:53 35 minutes, 53 seconds we think about this and given where you know the Chinese yuan is depre and the INR is depreciated around 60 odd% versus 36:01 36 minutes, 1 second Chinese. Uh doesn't it make more sense or make us more comprehive? Actually 36:08 36 minutes, 8 seconds look uh Sah what you're what you're saying is is completely logical. Uh but somehow China continues to keep 36:16 36 minutes, 16 seconds surprising us with uh their pricing. uh we are not really able to uh logically work out how it is that they you know go 36:25 36 minutes, 25 seconds on go on kind of uh offering uh lower rates to uh to to grab business. So uh 36:33 36 minutes, 33 seconds you know Chinese pricing is somewhat of a mystery uh I think definitely to us and a lot of other uh you know Indian 36:40 36 minutes, 40 seconds industry at large. uh two just in terms of uh you know your overall question on motors uh I think look the market you 36:48 36 minutes, 48 seconds know is shifting more towards being or looking at a solution provider in totality. So what we have seen is that 36:55 36 minutes, 55 seconds you know earlier customers who were just buying for example just motors from us uh you know are talking to us uh you know in terms of getting the full 37:03 37 minutes, 3 seconds solution. So you know instead of just applying a fan motor per se they're talking of uh uh you know getting the full uh full fan. Uh similarly uh you 37:13 37 minutes, 13 seconds know on the on the mixer grinder side the same thing. Uh, of course a little bit of it was impacted due to the uh, 37:20 37 minutes, 20 seconds you know, war because uh, a lot of these plants uh, you know, run gas fired shops and uh, you know, because of the gas 37:28 37 minutes, 28 seconds availability uh, a lot of them had to take some sort of uh, shutdown uh, in in March. So there was there was some sort 37:35 37 minutes, 35 seconds of impact temporarily uh although that is now that is now resolved. So uh these are my thoughts. I mean uh I don't know 37:44 37 minutes, 44 seconds if that completely answers your question or no. Uh over over to you. 37:49 37 minutes, 49 seconds Uh sure. I mean just cling uh clarifying on the motor weight again meaning if you're doing a system integration or a 37:57 37 minutes, 57 seconds complete value added essentially structurally our value addition or the gross margin should improve right. So it 38:04 38 minutes, 4 seconds has to be captured somewhere in the system. If you're not selling motors, we selling a solution. Uh that should somewhere reflect in that. So a just 38:12 38 minutes, 12 seconds wanted to get a clarity on that. And second, again with motors, I think we were trying to make some inroads into 38:19 38 minutes, 19 seconds you know the AC sector motors and as well as refrigeration motors or sorry uh washing machine motors. So if you can talk a little on those aspects as well. 38:30 38 minutes, 30 seconds So look uh what what typically happens is let me give you an example of a mixer grinder uh uh mixer grinder product 38:38 38 minutes, 38 seconds right so uh what happens is that once you hit you know anyone who's just doing assembly buying motors from us uh so 38:46 38 minutes, 46 seconds assembly is obviously a lower value addition uh activity uh manufacturing of motors is a slightly better manufacturing activity uh I mean value 38:54 38 minutes, 54 seconds addition activity so once you hit some sort of critical mass in terms of getting um you know some good decent 39:02 39 minutes, 2 seconds numbers for the FG assembly uh typically every person will look at going uh 39:10 39 minutes, 10 seconds in-house I mean that that is how the industry is is kind of kind of transpiring because uh motors is a 39:18 39 minutes, 18 seconds slightly not a slightly a reasonably better value addition uh uh product right that is uh that is one uh that is 39:26 39 minutes, 26 seconds why I said that most customers are looking at complete complete kind of solutions where you supply the finished good uh itself rather than just the just 39:35 39 minutes, 35 seconds the component. Right. Uh to your second question on uh washing machine motors uh like I mentioned uh you know we are 39:43 39 minutes, 43 seconds regularly in touch with uh you know with our with our potential customers I must say for washing machines. Unfortunately 39:52 39 minutes, 52 seconds uh you know like I said uh China's further kind of uh reduced its price to accommodate on the on the foreign 40:00 40 minutes exchange uh rate. So how they work out their pricing like I said is is a bit of mystery to me. Uh will we will again try 40:09 40 minutes, 9 seconds and go back to the drawing board and see what can do uh and uh you know we can of course connect offline to discuss this uh you know in more detail. 40:18 40 minutes, 18 seconds Sure. And just a final question in terms of uh guidance uh you know if you're saying 15% growth essentially that's 40:26 40 minutes, 26 seconds taken care by the price hike itself right so this doesn't this seems to be a little conservative given the new 40:34 40 minutes, 34 seconds capacity expansion as well and secondly on the working capital as well I think we used to guide for 45 days it seems to 40:41 40 minutes, 41 seconds have been gone to the 50 band so why is that so so things one is uh you're you're right 40:49 40 minutes, 49 seconds that uh you know we have given a bit of a conservative uh guidance. There are two points. One is uh you know uh a 40:56 40 minutes, 56 seconds sharp increase in pricing does cause some sort of uh demand destruction typically. Uh now whether that happens 41:03 41 minutes, 3 seconds or not is is yet to be seen. We don't know. Uh because the basket that we operate in is largely discretionary, 41:11 41 minutes, 11 seconds right? Uh we don't really operate in uh the necessity or the staples basket. We operate in a discretionary basket. 41:17 41 minutes, 17 seconds people can live without uh you know the products that we manufacture. So those uh you know purchases kind of tend to 41:24 41 minutes, 24 seconds get uh deferred when prices uh go up. Uh that's that's point one. Uh point uh 41:32 41 minutes, 32 seconds point two is uh we hopefully don't expect this this sort of uh war situation to last for the full fiscal 41:41 41 minutes, 41 seconds otherwise we'll have a different set of problems to deal with. So I do expect that at some point uh things will get resolved uh pricing will come down. So 41:49 41 minutes, 49 seconds then one will also have to work with some sort of uh volume growth to meet uh meet revenue targets. But we've 41:56 41 minutes, 56 seconds consciously given uh somewhat of uh uh conservative kind of guidance. We uh we 42:04 42 minutes, 4 seconds would be very happy you know if uh say in Q2 or Q3 we uh kind of uh you know are in a position to uh to increase that. 42:15 42 minutes, 15 seconds Perfect. Perfect. And just on the working capital so working capital again I mean this is just uh you know just being prudent. Uh 42:24 42 minutes, 24 seconds the target is to stay at 45 or even lower. But uh currently the situation is so volatile that we are just working 42:31 42 minutes, 31 seconds with uh you know consciously working with higher higher inventory, higher procurement of uh you know class A, 42:39 42 minutes, 39 seconds class B and even class C items. Uh so in times like this it's just important to uh to align uh uh you know your your uh 42:48 42 minutes, 48 seconds investor partners with uh with what you're doing. So, we've just kind of uh given you a heads up. Uh, of course, once the situation kind of normalizes, 42:57 42 minutes, 57 seconds we will uh endeavor to to get to the lower end of that band and even even probably lower than that. 43:04 43 minutes, 4 seconds Perfect. Thank you so much. I'll just come back and thank you so much, sir. The next question comes from Mr. Sam Ashwok from 43:13 43 minutes, 13 seconds Jalat Merchant Securities. Please go ahead. 43:17 43 minutes, 17 seconds Uh, hello Akash. Am I audible? Yes, sir, you are. 43:21 43 minutes, 21 seconds Uh so earlier uh a part of Eden's business uh was priced in such a way that uh we 43:30 43 minutes, 30 seconds used to get the value add of the raw material and we used to benefit in the inflationary trend. So do we still have 43:38 43 minutes, 38 seconds that business or we have completely vacated out of that kind of pricing now? 43:45 43 minutes, 45 seconds No, we sir we have that uh business but see typically what happens is that uh 43:51 43 minutes, 51 seconds you know inflation in small doses over a sustained period of time is what is 43:59 43 minutes, 59 seconds typically acceptable to customers. when uh you know pricing overnight uh you know in 1 month or even uh 2 or 3 months 44:08 44 minutes, 8 seconds goes up by double digit that gets very very uh difficult to uh to absorb because uh customers I mean our end 44:16 44 minutes, 16 seconds customers typically cannot or do not uh tinker with MRP on a very regular basis 44:24 44 minutes, 24 seconds and uh you know this is this kind of inflation is also led by a supply side shock. one logically keeps uh hoping and 44:33 44 minutes, 33 seconds anticipating that there will be some end to this war uh after which prices will suddenly cool off. I mean 44:42 44 minutes, 42 seconds the anticipation now whether that happens or not I don't know uh but uh you know those are just some thoughts as to why this kind of uh supply shock led 44:52 44 minutes, 52 seconds inflation is not good uh but inflation in uh you know probably steady doses and over a regular period of time is is is 45:00 45 minutes good good for us I hope that that clarifies. 45:05 45 minutes, 5 seconds Got it. So second question is on the if I do a console minus standalone. 45:11 45 minutes, 11 seconds So the buddy entity which is basically the part of len appliances it has reported a alltime low gross margin of 12.7%. 45:20 45 minutes, 20 seconds And it is making a slight aeta loss also. So at this entity the gross margins have been continuously falling 45:28 45 minutes, 28 seconds down for last four five years while the operating costs have increased. So what are the issues? It is it because of 45:34 45 minutes, 34 seconds product mix or the cost in general have increased over here means what are the issues? 45:40 45 minutes, 40 seconds No. So there are uh you know so one is you know don't look at just that entity because sometimes what happens is 45:48 45 minutes, 48 seconds sometimes building happens in uh you know the standalone I mean the Len Electronics Limited sometimes it happens in Len Appliances uh private limited. uh 45:57 45 minutes, 57 seconds so you know customers kind of uh keep keep picking and choosing sometimes and I'm not saying I'm not saying all the time. So one is one is that two is uh 46:06 46 minutes, 6 seconds you're right that uh you know some part of the business has uh uh you know kind of uh I mean kind of gone through a 46:15 46 minutes, 15 seconds challenging phase that is housed in Ellen Appliances private limited. We are working uh on getting that business uh uh you know uh correctly repriced. 46:26 46 minutes, 26 seconds Hopefully that should happen in uh maybe maybe maximum two quarters. Uh as and when this happens we will uh you know 46:33 46 minutes, 33 seconds get in touch with you and let you know but that will also ultimately reflect in the numbers itself. A do do we want to 46:40 46 minutes, 40 seconds run this uh means after moving from part production to Gazyabad which you are which you are going to do and with the 46:47 46 minutes, 47 seconds new biardi campus do we need to continue to run this particular plan because 46:53 46 minutes, 53 seconds there are no excise benefits also now from a tax and uh you know reged for 47:02 47 minutes, 2 seconds that purpose so that's why Sorry uh I can can you just repeat a 47:13 47 minutes, 13 seconds question then I'll then I'll just answer. So with the with the expansion that we are doing in Gazyabad where we are shifting 47:21 47 minutes, 21 seconds some of the mixer production and the expansion in Biad in longer run uh do we 47:28 47 minutes, 28 seconds intend to run the uh Bundy plant mean does it make a strategic sense? 47:36 47 minutes, 36 seconds Look uh there is a lot of capital investment that has uh you know already been incurred and is sitting there. So 47:43 47 minutes, 43 seconds uh I uh honestly don't I mean there is certainly no plan on an immediate basis to shut that shut that down or uh 47:53 47 minutes, 53 seconds something uh one will obviously have to wait and watch. you are right that uh you know there is no benefit from uh 48:01 48 minutes, 1 second running that plant currently uh that that I accept but there is a full ecosystem there is infrastructure there that uh you know is uh frankly uh costly 48:11 48 minutes, 11 seconds and I don't even know if it's practical to just uh replicate here and there so um you know there is no no immediate 48:18 48 minutes, 18 seconds plan in terms of relocating that entire facility zone I will say got it thank Thank you so much sir. 48:31 48 minutes, 31 seconds Next question comes on the line of Mr. 48:33 48 minutes, 33 seconds Mo Shranka from Aram Capital. Please go ahead. 48:37 48 minutes, 37 seconds Hello sir. Can you guide me regarding any recent management changes in the company and provide some color regarding that? 48:45 48 minutes, 45 seconds Um so uh I mean uh the last news that uh you know we had shared which is when it 48:52 48 minutes, 52 seconds happened was that uh our first 12 CEO had had resigned. Uh so that was I think the only uh you know senior management 49:01 49 minutes, 1 second uh change but nothing nothing per say otherwise. 49:05 49 minutes, 5 seconds Okay. So do we have a new CEO in place of him and any any reason for this sudden uh departure? 49:13 49 minutes, 13 seconds No, I mean no known reason uh to me. Uh what was known is what was disclosed. He found a better opportunity. He moved on. 49:21 49 minutes, 21 seconds Uh that's uh that's what we know. Uh and uh we don't intend to get uh a new CEO. 49:27 49 minutes, 27 seconds Uh for us, what we've realized is probably better to work with uh you know uh kind of individual business heads and 49:36 49 minutes, 36 seconds slightly one level below C CEO uh people. So we will not be getting a a CEO in the near future. 49:46 49 minutes, 46 seconds Okay. Got it. 49:53 49 minutes, 53 seconds Thank you so much. Ladies and gentlemen, if you have any questions, please press star and one on a telephone keypad. 50:02 50 minutes, 2 seconds I repeat, if you have any questions, please press star and one on a telephone keypad. We have a follow-up question from Mr. 50:10 50 minutes, 10 seconds Kunal meta from incred equities please go ahead sir. 50:14 50 minutes, 14 seconds Yeah. Hi just one question now that uh praiser has uh moved on and I think uh there was mentioned that he was focusing 50:22 50 minutes, 22 seconds a lot on you know the on the procurement side and now procurement being difficult. So who in in Ellen is you 50:29 50 minutes, 29 seconds know now responsible for procurement to have we hired someone internally or do we have a like a team in place with a business head for projection? 50:40 50 minutes, 40 seconds No. So when uh obviously so point one is uh look uh there is no one single person 50:46 50 minutes, 46 seconds who can uh you know do uh you know a full company's work. So there is a person I mean uh Praindi used to oversee 50:55 50 minutes, 55 seconds that that function uh and currently that function is now being overseen by by one of the family uh family people but there 51:03 51 minutes, 3 seconds is a full team uh in place there always was before we had made certain tweaks to that uh there is a full team even uh 51:10 51 minutes, 10 seconds even even now that is that is there is uh reasonably effectively doing doing their work and discharging their duty. 51:20 51 minutes, 20 seconds Okay. Yeah, I think I said one question. Thanks. 51:27 51 minutes, 27 seconds Thank you so much sir. Next question comes from the line of Mr. Pam Kutri from Kolkata Metal Depot. Please go ahead. 51:35 51 minutes, 35 seconds Hello sir. I wanted to ask uh do you have any program to or plans in the 51:42 51 minutes, 42 seconds future to launch any products under your own brand? And 51:48 51 minutes, 48 seconds no sir. We don't have our own brand. We don't intend to launch any products in our own brand. 51:55 51 minutes, 55 seconds And uh uh by when do we expect this uh new facility to be fully operational and 52:03 52 minutes, 3 seconds um start generating uh positive cash flow? 52:08 52 minutes, 8 seconds It will be operational by uh like I said uh commercial production should begin latest by August 2026. 52:18 52 minutes, 18 seconds And like how much time will it take to like you know reach 70 80% of the plant 52:25 52 minutes, 25 seconds capacity when you already so uh look the revenue potential of the 52:32 52 minutes, 32 seconds plant is probably 550 crores uh probably to get to 80% it might take 52:39 52 minutes, 39 seconds four or four five years or four years 52:52 52 minutes, 52 seconds sir. 52:54 52 minutes, 54 seconds Yeah, thank you. I got Thank you so much, sir. There are no further questions. 53:02 53 minutes, 2 seconds In the interest of time, we can maybe if there are any further questions, we can just take one or two and then then wrap up. 53:10 53 minutes, 10 seconds Ladies and gentlemen, if you have any questions, please press star and one on your telephone keypad. 53:20 53 minutes, 20 seconds There are no further questions. Sir, now I hand over the floor to the management for closing comments. 53:26 53 minutes, 26 seconds [clears throat] 53:27 53 minutes, 27 seconds Yeah, this is Kamill Seta. Thank you for your time. There has been challenging time uh we we've been going through in 53:35 53 minutes, 35 seconds the last quarter or so but uh we have started the process of our mitigation through remedial processes which is 53:43 53 minutes, 43 seconds ongoing and uh uh all the departments are engaged in that. So we hope uh for 53:51 53 minutes, 51 seconds improvement in the coming quarter. Of course the geopolitical situation easing out would help us much more. So uh thank 54:01 54 minutes, 1 second you so much for your time and uh attending the call. Thank you. 54:06 54 minutes, 6 seconds Thank you sir. Ladies and gentlemen, this concludes your conference for today. Thank you for participation and for using Dusabas conference call service. You may disconnect your lines 54:15 54 minutes, 15 seconds now. I could