Ester Industries Limited — Q4 FY26

Ester Industries Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=TAKyPw3Ibug Published: 1d ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Easter Industries Limited Q4 and FY26 earning conference call hosted by At Factors PR. 0:14 14 seconds As a reminder, all participant line will be in listenonly mode and there will be an opportunity for you to ask question after the presentation concludes. 0:25 25 seconds Should you need assistant during the conference call, please signal an operator by pressing star 10 on your touchstone phone. I now hand the 0:34 34 seconds conference to Mr. Amit Sharma from ATF factors PR. Thank you and over to you sir. 0:40 40 seconds Thank you Ria and good afternoon everybody and a very warm welcome to you all. 0:46 46 seconds Thank you everyone for participating in the earnings call of Esser Industries Limited for the fourth quarter and full year ended 31st March 2026. 0:56 56 seconds On the call today with us we have Mr. 0:59 59 seconds Viber Ja CEO, Mr. Praep Rasagi, executive director corporate affairs and Mr. Sav Araal CFO of the company. 1:11 1 minute, 11 seconds The management will take us through the operational and financial performance for the quarter and full year gone by. 1:17 1 minute, 17 seconds Following which we will open the forum for the Q&A. Before we begin, please note that this conference call may 1:24 1 minute, 24 seconds contain forward-looking statements about the company which are based on the beliefs, opinions, and expectations of the company as on the date of this call. 1:34 1 minute, 34 seconds The statements are not a guarantee for future performance and involve risks and uncertainties. They're not difficult to 1:41 1 minute, 41 seconds predict. I now request Mr. Babja to take us through the company's performance. 1:47 1 minute, 47 seconds Thank you and over to you sir. 1:51 1 minute, 51 seconds Thank you Aron. Thank you everyone for joining us. I will briefly take talk about the key business developments for Q4 and full year FY26. 2:00 2 minutes Post Sor will walk you through our financial performance. 2:04 2 minutes, 4 seconds The quarter ended March 31, 2026 marked a meaningful inflection point for the company. The major headwinds that 2:12 2 minutes, 12 seconds weighed on business segments through much of FI26 were aggressive price competition in Bit films from Chinese dumping and disruption caused by 2:20 2 minutes, 20 seconds imposition of US trade tariffs. Uh both of these factors adversely affecting performance of Bit films. Both these 2:28 2 minutes, 28 seconds factors have now undergone a significant degree of moderation. On the trade tariff front, the reciprocal and punitive trade tariff imposed by USA 2:36 2 minutes, 36 seconds government has been rejected by Supreme Court of USA. However, the USA government has now imposed a global 2:42 2 minutes, 42 seconds tariff of 10%. Even global tariff of 10% has been challenged uh in the courts and the matter is subjudiced. This 2:50 2 minutes, 50 seconds development has meaningfully stabilized export dynamics for Indian manufacturers including us. On the domestic front, uh 2:57 2 minutes, 57 seconds the directorate general of trade remedies, DGTR has imposed anti-dumping duties uh on buffet film imports from China and certain other countries. 3:09 3 minutes, 9 seconds Formal imposition by the ministry of finance is expected in due course for this to take effect. This measure is set to establish a more balanced competitive 3:18 3 minutes, 18 seconds landscape and deliver sustained relief to Indian producers. 3:22 3 minutes, 22 seconds Domestic and export bopit film industry witnessed margin expansion during the last quarter which is Q4 FY26. Uh this 3:30 3 minutes, 30 seconds was due to increase in global prices on account of uh higher prices uh being charged by Chinese producers also 3:39 3 minutes, 39 seconds because of the inflationary geopolitical situation uh since last two to three months and also the depreciation of rupee. This development has 3:47 3 minutes, 47 seconds significantly enhanced the competitiveness of Indian Bedit film players including ourselves and we intend to leverage this opportunity 3:55 3 minutes, 55 seconds proactively. The ongoing conflict in West Asia has kept crude oil prices elevated and volatile contributing to a 4:02 4 minutes, 2 seconds firmer raw material cost environment during the quarter. We continue to monitor this closely and manage our procurement accordingly. 4:11 4 minutes, 11 seconds On the regulatory front, uh the implementation of plastic waste management rules PWMR uh with effect 4:18 4 minutes, 18 seconds from 1st April 2025 uh continues to drive structural demand growth for sustainable bopit film 4:26 4 minutes, 26 seconds solution. The mandate requires 10% PCR content in flexible packaging in FY 26 4:33 4 minutes, 33 seconds and 27 and this increases further to 20% in the subsequent years of FY28 and FY29. 4:41 4 minutes, 41 seconds The company is actively collaborating with leading players of the ecosystem and partnering with them to capture this opportunity. 4:50 4 minutes, 50 seconds Now coming to the policy film segment performance uh on a consolidated basis the film segment revenue for Q4 FY26 4:58 4 minutes, 58 seconds stood at 321 cr reflecting year-on-year growth of 14.9%. 5:04 5 minutes, 4 seconds With film volumes at 19,656 metric t is an increase of 2.3% on y basis for 5:14 5 minutes, 14 seconds the full year. FYI 26 film volumes increased 5.1% yearonear to 80,517 5:21 5 minutes, 21 seconds metric tons. Consolidated capacity utilization for Q5 Q4 FY26 stood at 5:28 5 minutes, 28 seconds approximately 78% with Esther Filtech operating at 85% and Esther industries at 72%. 5:36 5 minutes, 36 seconds The company continues to focus on value added and specialtity products to reduce the cyclicity in the film business. The 5:44 5 minutes, 44 seconds volume of wax products stood at 25% of total sales volume in FY26. In volutric 5:51 5 minutes, 51 seconds terms, the growth in wax products was 14.5% despite adverse effect of USA 5:57 5 minutes, 57 seconds volume loss um partially due to the trade tariffs. Chips revenue during the 6:05 6 minutes, 5 seconds year grew approximately 2.2x 2x year on year to rupees 65.7 crores driven by higher third party sales volume. Segment 6:14 6 minutes, 14 seconds EIT for Q4 FY26 stood at 42 cr representing a robust 73% year-on-year 6:21 6 minutes, 21 seconds improvement with EBIT margins expanding by 440 basis points to 13%. A clear demonstration of recovery as the impact 6:30 6 minutes, 30 seconds of prior headwinds progressively moderates. The specialtity polymer segment continues to serve as a mitigation against cyclicity in film 6:39 6 minutes, 39 seconds segment. In Q4 FY26, sales volume stood at 658 metric ton. For the full year FY26, specialty polymer sales volume 6:48 6 minutes, 48 seconds grew 21% yearonear to 3,836 metric t with segment revenue growing 6:54 6 minutes, 54 seconds 16% yearonear to rupees 179.3 cr from rupees 155.2 2 crores in FY25. Segment 7:04 7 minutes, 4 seconds for FY26 stood at rupees 58.7 crores with healthy abit margins of 32.7% 7:12 7 minutes, 12 seconds primarily supported by strong IP protection for certain marquee products. 7:16 7 minutes, 16 seconds While Q4 FYI26 saw some volume moderation in our core specialtity products, other value added specialtity 7:24 7 minutes, 24 seconds polymer products witness strong traction with meaningful higher volumes supported by our R&D pipeline. Uh strong human 7:33 7 minutes, 33 seconds capital and focus marketing. We remain confident of delivering good growth in this segment. Concerted efforts are 7:40 7 minutes, 40 seconds being made in product development and customer acquisition across geographies and this is likely to result in growth in the business in coming times. 7:49 7 minutes, 49 seconds Recycled pet uh performance has been one of the most compelling growth stories within our portfolio. uh we have been 7:57 7 minutes, 57 seconds able to rapidly scale uh the recycle pet business with our pet volume surging to surging by uh surging 126% yearonear in 8:07 8 minutes, 7 seconds Q4 FY26 to 1,677 metric ton for the full year FY26 ARPET 8:14 8 minutes, 14 seconds volume grew approximately 258% yearonear to 5325 metric ton and ARP revenue 8:21 8 minutes, 21 seconds surged 3.7x year on year to rupees 59.3 crores from rupees 16.2 crores in FY25. 8:29 8 minutes, 29 seconds This reflect this reflected both rising demand for sustainable packaging solutions and our rapidly expanding manufacturing capabilities. The 8:37 8 minutes, 37 seconds implementation of plastic waste management rules with effect from 1st April to 2025 which mandated 30% PCR content in rigid 8:47 8 minutes, 47 seconds packaging continues to drive structural growth for our pet demand. We have commissioned a state-of-the-art ARPET 8:54 8 minutes, 54 seconds extruder in Hyderabad with a capacity of 20,000 metric ton peranom. This extruder is going to generate value as a demand for usage of arpet increases in bopet 9:03 9 minutes, 3 seconds films due to implementation of PWMR rules. It positions us to vertical in vertically integrate this important capability to cater to the upcoming ramp 9:12 9 minutes, 12 seconds up in PCR film demand as well as create revenue generation operation opportunities through sale of film grade ARPET and textile grade ARPET. 9:22 9 minutes, 22 seconds EST film uh delivered an impressive performance during the Q4 FY26. Capacity 9:28 9 minutes, 28 seconds utilization reached 85% in Q4 FY26 compared to 59% in Q4 FY25. 9:36 9 minutes, 36 seconds Total income surged 67.7% yearonear to 137 1.7 cr driven by 53.3% 9:44 9 minutes, 44 seconds growth in sales volume. AITA excluding MTM and reinstatement losses on foreign 9:50 9 minutes, 50 seconds currency term loan for Q4 FY26 stood at rupees 24.6 6 crores. A significant 9:57 9 minutes, 57 seconds improvement year on year reflecting the combined impact of higher volumes, larger proportion of wax products, 10:04 10 minutes, 4 seconds improved realizations and operating leverage. 10:09 10 minutes, 9 seconds Turning to our part-breaking chemical recycling of polyester textile waste initiative through our 50/50 joint venture, Esther Loop Infinite 10:17 10 minutes, 17 seconds Technologies Limited. All project related activities are being pursued diligently. Land acquisition for the project is under progress. Following the 10:26 10 minutes, 26 seconds completion of front-end engineering and design study by Tata Consulting Engineers, we have engaged Toyo Engineering, a globally recognized 10:34 10 minutes, 34 seconds detailed engineering firm as our engineering consultant. This represents the final engineering phase ahead of commencement of construction. the 10:42 10 minutes, 42 seconds European Union's ecodesign for sustainable product regulation or ESPR uh stipulating mandatory collection of 10:51 10 minutes, 51 seconds textile waste destruction of unsold apparel shoes and finalized specified finalizing specify specific 10:59 10 minutes, 59 seconds u recycled content percentages for garment with provision for payment of fees for all non-compliant fashion brands is expected to trigger growth in 11:08 11 minutes, 8 seconds demand for T2T recycled PT by end of calendar 2028. This will provide a significant structural boost to demand 11:17 11 minutes, 17 seconds for products that Elite will be uniquely positioned to deliver globally. Elite's facility will enable global brands 11:23 11 minutes, 23 seconds including our anchor customer like Nike to achieve their sustainability targets while establishing complete circularity 11:31 11 minutes, 31 seconds in the polyester textile to textile value chain. 11:35 11 minutes, 35 seconds We are we are pleased to report that subsequent to balance sheet date the company has successfully secured 165.25 crores 11:44 11 minutes, 44 seconds against its 175 cr sh sh sh sh sh sh sh 11:47 11 minutes, 47 seconds sh sh sh sh sh sh sh sh sh sh sh sh sh share warrant issue. This substantial uh capital intrusion underscores the deep confidence our promoters and investors 11:55 11 minutes, 55 seconds place in the company's long-term value proposition and growth trajectory. 12:01 12 minutes, 1 second In summary, we believe Bopit film segment has now emerged from the bottom of the cycle with anti-dumping duties that are soon expected to be notified by 12:10 12 minutes, 10 seconds customs. We expect meaningful margin improvement in FY27 and beyond. The convergence of growing polyester film 12:17 12 minutes, 17 seconds demand IP protected specialtity prolmer products a rapidly scaling arped business and the transformative elite 12:24 12 minutes, 24 seconds project advancing albeit with some delay gives us confidence in continued and incremental value creation for our 12:33 12 minutes, 33 seconds stakeholders. We remain committed to driving sustainable and profitable growth, advancing our circular economy vision, investing in operational 12:41 12 minutes, 41 seconds excellence and R&D and delivering long-term value to all our stakeholders. 12:45 12 minutes, 45 seconds We look forward to a significantly stronger FY27. I will now hand over to Sor to walk you through our financial performance. Over to you, Sorup. 12:54 12 minutes, 54 seconds Thank you, Weber. Good evening, everyone. Let me take you through our financial performance after which we will open the floor for question and 13:02 13 minutes, 2 seconds answer. First I will talk about the standalone financial performance for quarter 4 FI26. 13:07 13 minutes, 7 seconds On a standalone basis, the company reported total income of rupees 257.3 cr in quarter 4 FI26 with a marginal 13:16 13 minutes, 16 seconds decline of 1.6% on year-on-year basis primary on account of lower BET film volumes. However, domestic margins 13:24 13 minutes, 24 seconds improved sequentially supported by strong pricing discipline and a healthier product mix. 13:30 13 minutes, 30 seconds Stalin and ITA for the quarter stood at 25.6 cr with an IITA margin of 9.9%. 13:36 13 minutes, 36 seconds Excluding mark tom market and reinstatement loss of 4.22 crores on foreign currency term loans which are non-cash in nature adjusted IITA would 13:45 13 minutes, 45 seconds have been at rupes 29.8 crores representing adjusted IITA margin of 11.6% with adjusted cash profit of rupes 19.3 13:54 13 minutes, 54 seconds cr profit after tax for quarter 4 fi 26 stood at rupes 4.4 4 cr with a pat 14:01 14 minutes, 1 second margin of 1.7% and an earning per share of rupees 0.45 per per share for the full year FI26 standalone total 14:10 14 minutes, 10 seconds income stood at rupees 1059.6 cr standalone ITA stood at 85.9 cr at a margin of 8.1% 14:19 14 minutes, 19 seconds adjusted for marktomarket losses on foreign currency term loan I beta would have been 93.97 cr at a margin of 8.9%. 14:28 14 minutes, 28 seconds Full year PAT stood at rupes 4.4 cr with a pat margin of 0.4%. 14:33 14 minutes, 33 seconds The board of directors have proposed a dividend of rupees 0.25 per share for FI26 to the shareholders of Esther Industries Limited. 14:42 14 minutes, 42 seconds Now I will talk about Esta Film Techch standalone performance during quarter 4 FY26. 14:49 14 minutes, 49 seconds EST film witnessed a turnaround in operating and financial performance. 14:53 14 minutes, 53 seconds Sales volume reached 900 9,886 metric tonses a yearon-year growth of 53.3%. 15:00 15 minutes With the to while the total income rose 67.7% to 131.7 cr 15:07 15 minutes, 7 seconds reported I beta stood at rupes 18.6 cr while representing a 10 times improvement over quarter for fi 25 with an aida margin of 14.1%. 15:16 15 minutes, 16 seconds Excluding marktomarket and reinstatement losses on foreign currency term lodown of rupees 6.02 02 crores adjusted IITA 15:24 15 minutes, 24 seconds would have been rupes 24.6 cr with an adjusted ITA margin of 18.7%. 15:30 15 minutes, 30 seconds and adjusted cash profit of rupes 17.3 cr. Profit after tax for quarter for FI26 15:36 15 minutes, 36 seconds recovered to rupees 4.3 cr compared to a loss of rupes 11.5 cr in quarter for fi25 15:43 15 minutes, 43 seconds a significant positive inflection for the full year fi26 estester frame recorded a total income of rupees 455.4 15:52 15 minutes, 52 seconds 4 cr growing at 29.3% year-on-year basis reported IITA for FI26 was rupes 27 cr 16:01 16 minutes, 1 second adjusted for total markto market and reinstatement loss on foreign currency term loan of rupes 29.3 cr across the full year adjusted ITA would have been 16:10 16 minutes, 10 seconds 56 56 cr 30 lakhs at a margin of 12.4%. 16:16 16 minutes, 16 seconds EST film techch is entitled to some state level subsidies. These subsidies will be accounted for as other income as and when it is received. Till March 2025 16:25 16 minutes, 25 seconds subsidy amounting to rupes 9.57 cr has been approved by the government. We are waiting for the final receipt of the 16:32 16 minutes, 32 seconds amount. When received, it will boost the financial performance and liquidity position of Esther Film Techch for the period beyond 31st March 2025. An 16:41 16 minutes, 41 seconds application has already been submitted to the relevant industry department. 16:45 16 minutes, 45 seconds Now I'll talk about the consolidated financial performance for the quarter as well as the full year. 16:53 16 minutes, 53 seconds At consolidated level, the total income for quarter 4 FI26 was rupes 345.1 Kon-year growth of 7.2%. 17:02 17 minutes, 2 seconds Reported IITA was rupes 43.3 cr which is 10.7% up year on a year-on-year basis. 17:10 17 minutes, 10 seconds within a beta margin of 12.6%. An improvement of approximately 40 basis point over quarter for FY25 17:18 17 minutes, 18 seconds excluding marktomarket and reinstatement losses of rupes 10.24 cr on foreign currency term loan adjusted IITA would have been 53.6 crmp implying adjusted 17:27 17 minutes, 27 seconds IITA margin of 15.5% with adjusted cash profit of rupes 35.8 cr. 17:34 17 minutes, 34 seconds Consolidated profit after tax for quarter for FI26 recovered strongly to rupees 7.9 cr from rupees 2 from rupees 17:41 17 minutes, 41 seconds 2 cr in quarter for fi25. Earning per share for quarter for fi26 stood at 81 pes. The board of directors has proposed 17:50 17 minutes, 50 seconds a dividend of 25 pes per share for fi26 to the equity shareholders of est industries reflecting the company's improved financial position. For the 17:58 17 minutes, 58 seconds full year FI26 consolidate total income grew 7.2%. 2% to rupees 1392.7 cr from 18:07 18 minutes, 7 seconds rups 1299 cr in fi25 reported ibitta for the full year was rups 110.6 cr at a margin of 7.9%. 18:17 18 minutes, 17 seconds If we exclude the mark tomarket and reinstatement losses of rups 37.4 cr on foreign currency term loans adjusted 18:23 18 minutes, 23 seconds IITA would have been rupees 147.9 crores at a margin of 10.6% with adjusted cash 18:30 18 minutes, 30 seconds profit of rupes 79.8. 8 cr. At the fullear consolidated level, the company reported a net loss of rupes 27.5 crores 18:39 18 minutes, 39 seconds impacted primarily by cumulative non-cash marktomarket losses on foreign council liabilities and onetime increase in graduate and leave in catchment 18:46 18 minutes, 46 seconds liability of rupes 2.7 crores due to the implementation of new labor codes which came in effect from 21st November 2025. 18:55 18 minutes, 55 seconds Now I will talk about the balance sheet and the liquidity. So as on 31st March 2026, consolidated equity stood at 19:02 19 minutes, 2 seconds rupees 782.7 cr bolstered by proceeds from share warrant issue. Total consolidated assets stood at rupes 19:10 19 minutes, 10 seconds 1673.9 cr. Closing cash and bank balance including other bank balance stood at rupes 104.9 cr providing adequate 19:18 19 minutes, 18 seconds liquidity coverage. Funds amounting to rupes 79.5 cr have been received against share w subsequent to the balance sheet date. 19:26 19 minutes, 26 seconds Both industries limited and estra film techch limited have remained current on all terms on repayment as per the agreed schedule based on the expected 19:33 19 minutes, 33 seconds improvement in the profitability as outlined by web combined with our available cash and bank balance and adequate working capital limits to 19:42 19 minutes, 42 seconds support the budgeted FI27 operations. We remain confident of continued adherance to our repayment schedule going forward. 19:50 19 minutes, 50 seconds So as we close overall quarter for FI26 represents a clear inflection point for EST industries. The moderation in key external headwinds combined with our 19:58 19 minutes, 58 seconds operational progress across all business segments positions the company well for a strong FI27. 20:04 20 minutes, 4 seconds The investments we have made in operational excellence including R&D, ARPET and the elite chemical recycling for folster waste project are expected 20:13 20 minutes, 13 seconds to translate into meaningful improvements in profitability in the year ahead. That concludes our opening remarks. We now commence we can now 20:21 20 minutes, 21 seconds commence the Q&A session. Thank you so much. Thank you very much. 20:29 20 minutes, 29 seconds We will now begin the question and answer session. 20:33 20 minutes, 33 seconds Anyone who wishes to ask a question may press star and one on their touchtone telephone. 20:41 20 minutes, 41 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. 20:52 20 minutes, 52 seconds Ladies and gentlemen, we'll wait for a moment while the question queue assembles. 20:59 20 minutes, 59 seconds First question is from the line of Harshett Kadka from Robo Capital. Please go ahead. 21:07 21 minutes, 7 seconds Uh am I audible? Yes. Yes. Yes sir. 21:10 21 minutes, 10 seconds Uh yes sir. Thank you for the opportunity. I can see in the PPP that the operational is around 15% when we 21:18 21 minutes, 18 seconds adjust for the MTM losses. So is it sustainable or you know what can be the steadyst beta margins going forward? 21:31 21 minutes, 31 seconds Yeah. So uh let me answer this uh so 15.5% either without mark to market uh 21:40 21 minutes, 40 seconds is because of the structural industry improvement that we have seen. Now uh whether it will be 15 or lower than 15 21:50 21 minutes, 50 seconds will depend on the prevailing market condition. But I think what we can be uh assured of is that the AIA margins are 21:58 21 minutes, 58 seconds going to be far better than what we had seen um say on an average over the last 12 months or 15 months. 22:08 22 minutes, 8 seconds Uh this is in FI 27 or in FI28 as well. 22:15 22 minutes, 15 seconds Our take is that uh when we look at the uh global supply demand dynamics and the domestic supply demand dynamics uh we 22:24 22 minutes, 24 seconds see that uh the s sustenance of betit margins is going to continue for around 22:31 22 minutes, 31 seconds 18 to 24 months at least right understood the second question is regarding our elite JV so what kind of 22:39 22 minutes, 39 seconds numbers are we expecting in fi 27 seven. 22:45 22 minutes, 45 seconds Uh uh so elite is uh uh going to be operational uh by end of calendar 28. 22:56 22 minutes, 56 seconds So in the FY27 there is not going to be any impact in the profit and loss count of the company uh due to elite 23:05 23 minutes, 5 seconds operations. It will be still a company uh where the project is under implementation. 23:10 23 minutes, 10 seconds Right. Understood. So sir what can be the peak revenue and pad let's say 3 to four years going forward once it is operational after fi 28. 23:19 23 minutes, 19 seconds So in the when the first phase is completed which is about $70,000 tons of uh uh recycle material we are looking at 23:28 23 minutes, 28 seconds close to $150 million uh revenue from operations at 100% capacity utilization. 23:35 23 minutes, 35 seconds Right. And margins on that would be uh the it is already covered in the presentation. It will be in the range of 40 to 45%. 23:45 23 minutes, 45 seconds Margin 40 to 45. Understood. Thank you. 23:54 23 minutes, 54 seconds Thank you. Next question is from the line of Saraj Gupta from Swan Investments. Please go ahead. 24:02 24 minutes, 2 seconds Uh hello sir. Thank you for the opportunity. I'm not audible. Yeah, you are audible. 24:08 24 minutes, 8 seconds Yeah, thank you sir and congratulations on a great set of numbers sir. I had a few questions. So first I wanted to understand like how if you can if you 24:16 24 minutes, 16 seconds can speak from the handset handet now hello. 24:24 24 minutes, 24 seconds No it is not uh very clearly audible. Is it better now sir? 24:32 24 minutes, 32 seconds Yeah it is better. 24:35 24 minutes, 35 seconds Yeah. Hi. uh basically I wanted to understand like how was the spread movement uh prewar and post war like how 24:43 24 minutes, 43 seconds did the demand and the spreads move in the industry for both uh uh sorry 24:52 24 minutes, 52 seconds yeah so uh see it's a very precise information you are asking uh you know pre-war post war uh so indeed there was 25:01 25 minutes, 1 second an improvement in spread after uh the war because because uh you know the global uh supply 25:10 25 minutes, 10 seconds chain got disrupted and imports into India uh or anywhere else in the world uh became more expensive. So there was 25:18 25 minutes, 18 seconds an improvement in spread u postwar uh but it will be difficult at this point of time to uh give you a precise 25:26 25 minutes, 26 seconds number on pre-war and uh postwar spread because war started on some date in minutes of a month right so to give you 25:34 25 minutes, 34 seconds a precise number we'll have to do a lot of number crunching to give come to that so sir it's not a precise number but can you help us what was the average press 25:43 25 minutes, 43 seconds that we got in Q4 and what are the spreads currently 25:51 25 minutes, 51 seconds right. So uh when it comes to spread I think what we are talking about is uh 25:59 25 minutes, 59 seconds what the way we look at the market is plain 12 micron VA right and what we what we have seen is 26:08 26 minutes, 8 seconds that uh the average spread in Q4 was around uh 32 to 33 rupees for 12 micron 26:18 26 minutes, 18 seconds u VA right and as we go into this quarter we are expecting that the 26:25 26 minutes, 25 seconds average for this quarter should be somewhere between 30 to 35 rupees as well. 26:30 26 minutes, 30 seconds Okay. So if you look on the quarteron quarter basis there is not a sign there is not an improvement if you look at the current quarter. 26:40 26 minutes, 40 seconds Yeah we are expecting that similar VAS or I mean the range I gave you the VA should you know be there somewhere within that range 26:48 26 minutes, 48 seconds right? So now if you look on the overall number basis we have seen an improvement in the polister of limb business 26:56 26 minutes, 56 seconds substantially on a quarteronquarter basis but at that same time the speciality polymer of business has seen 27:04 27 minutes, 4 seconds a decline in the overall epid margin. So was it pertaining to the deferment in the shipment or a lower realization? How someone look at it? 27:16 27 minutes, 16 seconds Yeah. So there are two factors involved in specialtity part uh speciality polymers margins. One is the cyclicity 27:25 27 minutes, 25 seconds the the last quarter is generally um you know lower because of the dynamics of the product 27:32 27 minutes, 32 seconds that we sell. However, having said that, uh what we have been doing over last one year is we have been developing uh and 27:41 27 minutes, 41 seconds aggressively approaching the market uh with value added products to build the operating leverage in this business. 27:48 27 minutes, 48 seconds Okay. And as a result of that uh we are now selling u and scaling up uh many 27:56 27 minutes, 56 seconds products which do not have as high a margin as the high specialtity products 28:02 28 minutes, 2 seconds but uh have good margins right u compared to the normal pet or other such product in the market. So as a result of 28:11 28 minutes, 11 seconds which uh you would see that the uh a bit percentage structurally may uh may look 28:19 28 minutes, 19 seconds little uh lower than what we have been historically reporting. Having said that in last quarter there was also an issue 28:28 28 minutes, 28 seconds related to demand of one of our key uh specialtity products and um we are trying to assess the situation and 28:37 28 minutes, 37 seconds trying to figure out how this trend will look like uh going forward. 28:42 28 minutes, 42 seconds True. So so now when you said that you are focusing more on the value added product and which will give you a better operating leverage but the new product 28:50 28 minutes, 50 seconds will have a lower margin as compared to our existing product mix. So with the current 13% overall contribution from a 28:57 28 minutes, 57 seconds speciality polymer to the revenue what sorts of contribution one can assume over the next two to three years and 29:06 29 minutes, 6 seconds what will be a steady state margins once the the new product comes in place 29:12 29 minutes, 12 seconds uh I will just rephrase what I said so uh we didn't mean to say we are not going to focus on high speciality products of course those products remain 29:21 29 minutes, 21 seconds in focus but in In order to improve the operating leverage, we are also going to 29:28 29 minutes, 28 seconds focus now on uh VA product because we have a large capacity. We are running a 29:35 29 minutes, 35 seconds part of that capacity and the rest of the capacity is not being utilized. So why not utilize that uh capacity as well 29:42 29 minutes, 42 seconds to add to our cash flows. So that's the idea. The idea is not to reduce the focus on high specialtity. uh the high specialty products and even these V 29:51 29 minutes, 51 seconds products are long gestation products. So uh these will take to time to establish in the market but we expect uh to see 30:00 30 minutes steady growth in this business. In terms of u our expectation on the share uh 30:08 30 minutes, 8 seconds I think we are targeting that in next 2 to 3 years uh this should reach somewhere between uh 20 to 25%. 30:16 30 minutes, 16 seconds Uh or even slightly beyond that. 30:20 30 minutes, 20 seconds Okay. And when you indicate that the one of your marquee product had a lower demand in this quarter due to which we had seen a overall bandit realization 30:29 30 minutes, 29 seconds for specialty polymer coming down. So what sorts of other product are we coming in to offset that or probably is there any chance that we'll see a 30:37 30 minutes, 37 seconds revival in the product in the demand of that particular product? 30:42 30 minutes, 42 seconds To be honest uh we are still assessing the situation with respect to this product. So right now is not the right 30:49 30 minutes, 49 seconds time to comment on what will it be. U but apart from this uh there are uh many other products which we are working on. 30:58 30 minutes, 58 seconds um uh you know there are there's a strong demand for specialtity PET products originating 31:07 31 minutes, 7 seconds from uh PCR and this is a unique um capability that we have within our 31:15 31 minutes, 15 seconds within our portfolio uh which is being sought after across the world. So we are leveraging on this theme. We are also 31:24 31 minutes, 24 seconds very strong in developing uh many resins related to bopet film 31:31 31 minutes, 31 seconds industry u which are basically specialtity resins. So there also we are trying to penetrate the market not only 31:39 31 minutes, 39 seconds in India but across the globe. We have seen very strong response to those products. Um so these are the two key 31:46 31 minutes, 46 seconds platforms on which we are playing. Apart from this um the there are the established textile products and demand 31:55 31 minutes, 55 seconds for new uh textile products which we are seeing in the market and trying to capture those leveraging our existing portfolio as well as some new products which we are developing. 32:05 32 minutes, 5 seconds Oh, I think just to supplement what web have told you while there may be the reasons have 32:14 32 minutes, 14 seconds already been stated by Weber why the volume in this quarter was lower but if you look at the yearly growth in volume terms in specialy polymer it's been 32:22 32 minutes, 22 seconds significant we have achieved growth of 20 more than 20% in value terms and in 32:29 32 minutes, 29 seconds uh volume terms. So uh so quarter to quarter there may be you know sort of uh variations but on a yearly basis you see 32:38 32 minutes, 38 seconds consistent growth and is it is it possible to quantify the 32:46 32 minutes, 46 seconds impact of the loss in demand of the partic that particular product like I said that we are still assessing 32:54 32 minutes, 54 seconds the situation and right now we are uh we don't want to take a call on that until the situation becomes Clear. 33:03 33 minutes, 3 seconds And one questions on the loop. One question on the loop on the on the previous participants you indicate that 33:11 33 minutes, 11 seconds once the land is acquired the it will take near about 2 years to complete the entire project. So is it fair to assume that the numbers will come from FI30? 33:23 33 minutes, 23 seconds No. Uh so the land acquisition is expected to be completed in the next few months. 33:29 33 minutes, 29 seconds Right. And therefore we expect the commencement of operations by the last calendar quarter of 28. 33:37 33 minutes, 37 seconds Last that means calendar quarter of 29. 33:41 33 minutes, 41 seconds Okay. That means you're talking about the Q4 of FI29 where you commence the production. So in the trial run everything. So major benefit one should assume from FI30 onwards only. 33:51 33 minutes, 51 seconds Yes you are right. 33:54 33 minutes, 54 seconds Okay. Okay. So that's all from my as of now. If there's any further question I'll come back in the queue. Thank you. 34:03 34 minutes, 3 seconds Thank you. Next question is from the line of sake Kapoor from Kapoor and Company. Please go ahead. 34:14 34 minutes, 14 seconds Yeah, Saki G. Mr. Kapoor, your line has been unmuted. 34:22 34 minutes, 22 seconds Please go ahead. 34:25 34 minutes, 25 seconds Yeah, yeah, yeah. Sorry, I wasn't on mute. Uh, namaskar, sir. Hope I'm audible now. Yeah. Yeah, you are audible. 34:31 34 minutes, 31 seconds Yes. Thank Thank you for the opportunity and sir, congratulations to the entire team for posting strong set of uh operational uh and financial numbers. 34:42 34 minutes, 42 seconds Sir uh the opening remark and also uh the comments on the result speak uh 34:49 34 minutes, 49 seconds about we are looking uh I'm just quoting the management remains highly optimistic regarding our medium to long-term 34:56 34 minutes, 56 seconds performance prospects and as uh you were answering to the other participant that the spreads are in the vicinity to 32 to 35:05 35 minutes, 5 seconds 35 rupees uh per kg and we moving to the uh the premium segment also going at are 35:13 35 minutes, 13 seconds these factors that have enabled us to to comment on uh being highly optimistic in 35:20 35 minutes, 20 seconds a segment where things changes uh very widely. The swings are very wide. So 35:30 35 minutes, 30 seconds highly optimistic number 35:39 35 minutes, 39 seconds thank you for the question. uh see industry structure uh the way it is positioned right now uh the Indian 35:47 35 minutes, 47 seconds manufacturers are operating at an or operating rate of uh 80%. 35:53 35 minutes, 53 seconds And the upcoming demand what we are seeing is going to see a surge. So we expect the demand to grow in the rate of 36:02 36 minutes, 2 seconds at the rate of 8 to 10% instead of 6 to 8% that we had seen in uh previous years. This is happening uh because of 36:10 36 minutes, 10 seconds the uh growth expected in the FMCG market uh in the you know due to the usual economic uh growth that we see in 36:19 36 minutes, 19 seconds India. Plus there is a big pull in the bullet film industry due to um the PWM 36:27 36 minutes, 27 seconds rules. The bopet film is the only substrate used in most of the food packaging where you can implement these 36:35 36 minutes, 35 seconds PCR rules. So there is going to be a shift not only going to be let me say that there has been a shift from other 36:43 36 minutes, 43 seconds substrates like BOP and BOP to uh BOP as many brands have taken a view that they 36:52 36 minutes, 52 seconds should shift in order to comply with the PWMR rule. So with the industry operating at a I would say higher than 37:00 37 minutes usual operating rate with the strong growth that we are seeing we feel that u the industry is going to see sustained 37:10 37 minutes, 10 seconds period of strong operating rate uh going forward for at least next uh 7 to six to 37:18 37 minutes, 18 seconds eight quarters. Other than that uh there has been an improvement in global uh bopet margins uh because of uh the 37:27 37 minutes, 27 seconds Chinese producers charging more than usual because uh they also have taken a position that they don't want to sell at 37:35 37 minutes, 35 seconds sustained losses which they were doing so far. So that might there is a chance that uh there is going to be lesser 37:43 37 minutes, 43 seconds exports and dumping from them aided by the add that we are seeing uh in India that we are expecting in India. So 37:50 37 minutes, 50 seconds overall I think uh the demand is going to be very good in India and we are going to see uh strong operating rate. 37:58 37 minutes, 58 seconds This will give us some price stability. 38:02 38 minutes, 2 seconds also uh our whole uh thesis so to say is to become a specialty producer. So right 38:08 38 minutes, 8 seconds now we are selling 25% of films as specialtity films and uh almost all of 38:17 38 minutes, 17 seconds our speciality polyester polymer business is specialtity. Our target is to grow this 25% share of wax films to uh 60% plus in next two to three years. 38:29 38 minutes, 29 seconds So in summary uh we are trying to get out of the cyclicity of the commodity volumes in the packaging film business 38:38 38 minutes, 38 seconds and this is going to give us better margins than what we have seen in the past. We have seen success in this 38:45 38 minutes, 45 seconds endeavor on the specialtity polymers we have grown by 20% yearon year. uh on the 38:53 38 minutes, 53 seconds uh wax films business despite you know losing some volumes in US market due to 38:59 38 minutes, 59 seconds tariffs uh we saw a growth of 14 to 15% uh year on year so we are on the right 39:07 39 minutes, 7 seconds track and uh this gives us u the confidence that we should be seeing sustained improvement in ei margins in 39:15 39 minutes, 15 seconds medium to long term right sir on top of this we are we are working on many co many cost-saving 39:23 39 minutes, 23 seconds initiatives within the organization. We have seen lot of it getting realized. U 39:29 39 minutes, 29 seconds we are uh seeing very good costsaving uh realizations going forward this year and 39:37 39 minutes, 37 seconds next year. So overall uh the margins should be better than uh what we have seen so far. 39:45 39 minutes, 45 seconds Okay. answer then what should we expect in terms of the utilization level shaping up going ahead I think so there 39:52 39 minutes, 52 seconds there is there is operating leverage that will kick in from that aspect also 39:58 39 minutes, 58 seconds the operating leverage uh will come in mainly in specialtity polymers business 40:05 40 minutes, 5 seconds where uh we are working on value added product which will improve the volumes 40:12 40 minutes, 12 seconds um of how of on our asset on specialty film. See, we can run the plant at 100% any time, right? Uh it is a conscious 40:20 40 minutes, 20 seconds call not to do it because the moment we do it, we'll have to start taking on businesses which are going to uh be not 40:27 40 minutes, 27 seconds so remunerative. So we have taken a conscious call to have a balanced uh operating principle wherein uh we 40:35 40 minutes, 35 seconds optimize our production in so that we don't have to take on the loss making opportunities. 40:41 40 minutes, 41 seconds So uh the focus is mainly on you know uh incre improving the share of uh vas films and the volume of vas films and 40:50 40 minutes, 50 seconds margins we can increase as and when opportunities come uh you know as long as the additional opportunities give us 40:58 40 minutes, 58 seconds uh positive margins. Okay, just to just to conclude uh before I join the queue. 41:05 41 minutes, 5 seconds So specific the spec for the speciality polymer you did attributed it towards the seasonality factor but even if we if 41:13 41 minutes, 13 seconds you take that into account from last year the numbers for speciality polymers are have the profitability has also the 41:21 41 minutes, 21 seconds revenue has declined. So for the current year and with the type of steps I think so which you are just alluded to uh how 41:29 41 minutes, 29 seconds should this segment perform and then I have closing questions for forgi also. 41:34 41 minutes, 34 seconds Uh S G there is not been uh degrowth in the specialy polymer business the value uh in terms sales value the volume of sales all have shown improvement. 41:46 41 minutes, 46 seconds Uh so when we look at the category uh in the segment revenue correct me here speciality polymers posted uh under the 41:54 41 minutes, 54 seconds uh the consolidated number was 20 22.62 62 K which was comparable. Yeah. This is 42:01 42 minutes, 1 second Yeah. That is for the quarter. Yeah. Yes sir. Yes sir. I'm talking for the quarter. 42:05 42 minutes, 5 seconds This is what we told that quarter to quarter there may be variations but if you look at on yearly basis there is a 42:12 42 minutes, 12 seconds consistent growth both in volume and value of sales. Correct. Correct. 42:17 42 minutes, 17 seconds But I attributed it I attributed it uh to two things. If you if you heard me, I 42:26 42 minutes, 26 seconds said that there is a definitely a seasonality, right? U then on top of that uh there were issues on demand of 42:35 42 minutes, 35 seconds our one of our uh specialtity products and we are still assessing the impact of that but that was an issue last quarter. 42:43 42 minutes, 43 seconds So that is why uh you are seeing uh lower revenue and uh the margin makeup 42:51 42 minutes, 51 seconds is also affected by the fact that we sold uh value added products which have lower margins than the high speciality products that we sell. Right? So these 43:00 43 minutes are the factors which I had said uh led to these specialities affected these specialtity segments. 43:07 43 minutes, 7 seconds Right. So this will get corrected here this year or or we still have to wait for that to play out in our in our operational and financial number. 43:18 43 minutes, 18 seconds Yeah. So we are like I said we are still assessing the situation and we'll have to let it play out uh for some time before we can uh give a clearer picture on this. 43:29 43 minutes, 29 seconds Okay. And since uh since we are expecting a better uh cash flow also from the operations currently. So what 43:37 43 minutes, 37 seconds are our targets for reduction of debt and what is our current uh maturity for this uh for this financial year sir? 43:46 43 minutes, 46 seconds So uh Saki G uh uh uh the total debt as as on the balance sheet as we speak on 43:52 43 minutes, 52 seconds 31st March 26 is 730 crores roughly and in terms of maturity our annual 43:59 43 minutes, 59 seconds repayment is around 85 cr rupes. So as you mentioned about the cash flow so yes we are looking at an opportunity of 44:07 44 minutes, 7 seconds reduction in a debt next year going forward. Uh however that is also going to depend on a capex plan. 44:16 44 minutes, 16 seconds So sir can you give us some number of what have we planned for capex and which projects if you could just give the break up of the same. Yeah. So the total 44:25 44 minutes, 25 seconds capeex uh that we are planning for next year is around uh 70 cr rupee uh and uh that will be funded partially from the 44:34 44 minutes, 34 seconds cash flow that we are going to generate from the business and a part of it may also be funded through additional debt we which we will take. However uh uh on 44:43 44 minutes, 43 seconds an overall basis you will see a significant reduction in the debt at as on 31st March 2027. 44:50 44 minutes, 50 seconds And sir can you allude to the projects where we are we are going to invest for the 70 cr rupes. 44:56 44 minutes, 56 seconds So uh in in terms of 70 cr rupees uh sak there are certain projects uh which are which are a high payback period the 45:03 45 minutes, 3 seconds projects and uh the um which is roughly around 15 cr rupees and the balance projects are mainly focused on sustenance and maintenance of the plant. 45:14 45 minutes, 14 seconds Okay. Okay. So these are the pertaining to both the speciality polymer as well as our our our film business. This is where the 45:21 45 minutes, 21 seconds and for Yes. And for both locations I'm talking at a consolidated level. 45:27 45 minutes, 27 seconds Right sir. And lastly sir on the currency part I think so currency uh the euro played a spoil spot for our our 45:34 45 minutes, 34 seconds results. I think so significant MPM uh factor has been factored in. So sir uh 45:41 45 minutes, 41 seconds in in in in going ahead how will the uh man is it is it the exports that will 45:48 45 minutes, 48 seconds take care of the same in terms of our uh when we when the repayment comes or what is our strategy going ahead with the 45:56 45 minutes, 56 seconds type of significant depreciation that has happened in terms of the repayment. 46:03 46 minutes, 3 seconds Absolutely. So this uh depreciation which has happened in the currency uh we should look it into the perspective that this has been unprecedented right we 46:11 46 minutes, 11 seconds have uh in the last uh 10 years we have not seen this type of depreciation in both dollar as well as euro uh and because of the in events which has 46:20 46 minutes, 20 seconds happened in 25 as well as 20 first quarter of 26 this currency has depreciated so much so our strategy is 46:28 46 minutes, 28 seconds twofold number one is yes a part of it is going to be balanced with the exports And for the and the balance portion we 46:35 46 minutes, 35 seconds are closely watching the situation and as and when we get opportunities we are going to take appropriate hedge to ensure that our uh our losses on account 46:44 46 minutes, 44 seconds of this on depreciation of currencies adequately covered. 46:48 46 minutes, 48 seconds Okay. Sir only to conclude to it. One is we took euro loans as they were competitive at that type point of time 46:56 46 minutes, 56 seconds or what was the it was so uh when we we uh got the loan sanction in 21 47:04 47 minutes, 4 seconds uh and it was a mark of 75 basis point over and was negative so the floor for 47:11 47 minutes, 11 seconds us was zero. So the rate of interest was only 0.75%. 47:17 47 minutes, 17 seconds So in the initial uh uh let's say in the fin in the calendar year 21 22 23 24 for 47:24 47 minutes, 24 seconds four five years we had very massive savings had these loans been taken in in uh rupee terms the interest cost would 47:32 47 minutes, 32 seconds have been much more higher than what we paid as interest on the euro loan. So it is the last one and a half or two years 47:40 47 minutes, 40 seconds that we have been hit because of the exchange fluctuation. The first four years was very very uh remminative uh 47:47 47 minutes, 47 seconds due to the fact that we had taken a euro denominated loan. So as we when we took the loan uh the euro was at 84 and uh 47:56 47 minutes, 56 seconds even on 1st of January 25 the euro was hovering around 88 89. So so that is the range in which euro was moving against 48:03 48 minutes, 3 seconds rupee but since then euro has appreciated 212 rupees over a period of 15 months. So in the four years it 48:11 48 minutes, 11 seconds appreciated only by four rupees from 84 to 88 but in the last 12 to 15 months it has appreciated by almost 24 rupees. 48:22 48 minutes, 22 seconds That's the that's the main cause of concern. Yeah. 48:26 48 minutes, 26 seconds Yes sir. So what have been now the effective cost of funds for us if we take it for the entire project. 48:33 48 minutes, 33 seconds So keeping so even today the UR is only 2.2% 2% uh and if you take a markup of 48:41 48 minutes, 41 seconds about 75 so we are still availing the loan at less than 3%. And because of this fact only our weighted average cost 48:49 48 minutes, 49 seconds of debt in Estra Film Techch is less than 7% even today. 48:54 48 minutes, 54 seconds In rupee term 7% peranom yeah 7% peranom in rupee term. 49:01 49 minutes, 1 second Yeah. Yeah. Okay. and s for I think so PTA and MG prices we have also must have moved up significantly. 49:13 49 minutes, 13 seconds So if you could just give us some color. 49:17 49 minutes, 17 seconds So webhub stated in the opening remarks that it has been volatile and there has been uh increase uh but uh it it is 49:26 49 minutes, 26 seconds changing uh a lot. It changed a lot in the month of March and April but things are stabilizing now and it is in the 49:34 49 minutes, 34 seconds range of about 100 rupees per kg of chips uh as we speak now. 49:42 49 minutes, 42 seconds Thank you. 49:45 49 minutes, 45 seconds Next question is from the line of Ravi Nagra from an individual investor. Please go ahead. 49:52 49 minutes, 52 seconds Good afternoon sir. 49:54 49 minutes, 54 seconds Sir I have two questions sir. Uh my first question is sir what is the roe and roc target uh of the company because 50:04 50 minutes, 4 seconds mutual fund will only enter the company if roe and roc is 15%. Answer my my second question is we have a 10 patent 50:13 50 minutes, 13 seconds shown in uh investment patentation of speciality polymer but still we are dependent on two or three product and one product if one product goes down 50:22 50 minutes, 22 seconds whole revenue will collapse. So sir uh my question also that next year revenue target of specialty polymer business. 50:30 50 minutes, 30 seconds Thank you sir. 50:37 50 minutes, 37 seconds So I'll answer on the uh business side of speciality polymers and then sort of can uh give more color to ROE and ROC. 50:46 50 minutes, 46 seconds So see on speciality polymers uh like I mentioned that we are working on VA 50:54 50 minutes, 54 seconds products value added products uh as well as new high specialtity products. So what we are selling now the number of 51:01 51 minutes, 1 second products we are selling now and the number of customers that we have now is much more diverse than what it was uh 51:08 51 minutes, 8 seconds say couple of years back right and uh so um the idea is to derisk ourselves from 51:16 51 minutes, 16 seconds uh this kind of revenue and profitability fluctuations uh you know when we are depending on a few products and few customers. So we are working on 51:25 51 minutes, 25 seconds that direction and um we have made uh good success we have achieved good success in last 12 to 15 months and 51:33 51 minutes, 33 seconds going forward we are seeing that we are going to become more and more diversified. Over to you thorough. 51:41 51 minutes, 41 seconds Uh so uh if we talk of the return on capital uh uh we uh if historically I mean leave aside the last two years when 51:50 51 minutes, 50 seconds the performance has been down our return on capital employed had been in the range of uh just just hold on I'll give 51:57 51 minutes, 57 seconds you the number uh was about uh say in the financial year 2021 it was about 32% in financial year 1920 it was about 28%. 52:10 52 minutes, 10 seconds So in a normal scenario which we are going to see now in the following uh let's say the as web told in the next 8 52:17 52 minutes, 17 seconds to 10 quarters we are going to get a return on capital employed of more than 20%. 52:25 52 minutes, 25 seconds Okay sir thank you sir but uh answer specialty polymer can we do 200 crown revenue this year? 52:32 52 minutes, 32 seconds Yeah, we are confident. We would not like to be specific with the numbers but the plans that we have and the the detailed uh 52:41 52 minutes, 41 seconds annual operating plan that we have prepared we should be achieving that number because sir in last come you have said that each year we will do 20% growth in 52:50 52 minutes, 50 seconds special improvement that's why I am asking we stick to that okay sir thank you 52:59 52 minutes, 59 seconds thank you ladies and gentlemen please limit your question to who per part participant should have a follow-up question. We request you to rejoin the 53:07 53 minutes, 7 seconds question queue. Next question is from the line of Ruti Gandhi from family office. Please go ahead. 53:18 53 minutes, 18 seconds Hello, good evening sir. Thank you for the opportunity. Uh I just want to understand that since the two primary 53:26 53 minutes, 26 seconds seed talks for polyester quins Hi, am I audible? Yeah, you're audible. 53:32 53 minutes, 32 seconds Yeah. Yeah. So since uh the feed stock for polyester films are crude oil derivatives and brand crude has been 53:39 53 minutes, 39 seconds volatile throughout FI26. So how much of our cost base is directly linked to crude and what is the net feed stock 53:47 53 minutes, 47 seconds cost impact um on our margins margins that we are looking at. 53:56 53 minutes, 56 seconds See uh the um the industry operates on VA right. So what it means is that the supply demand 54:04 54 minutes, 4 seconds dynamics determine the value ad that you can get over the uh raw material. So if 54:12 54 minutes, 12 seconds the raw material increases um you know there will be some price elasticity but the VAS are dependent 54:20 54 minutes, 20 seconds mostly on the operating rate global operating rates as well as domestic operating rates. So even if the uh RM 54:28 54 minutes, 28 seconds increases unless you know it goes up by 100% or 50% something like that uh we don't expect price electricity to come 54:36 54 minutes, 36 seconds in and therefore the VA should remain consistent with the industry structure and the industry supply demand balance. 54:43 54 minutes, 43 seconds So this is just to let you know that uh the raw material typically does not eat into the profits right because uh the 54:52 54 minutes, 52 seconds profits are like I said dependent on many other factors other than just the RM price. P do you want to add on the RM side? 55:02 55 minutes, 2 seconds So uh this is what we have seen in the past. the margins for the polyester film or for the product that we deal in would 55:09 55 minutes, 9 seconds be determined by the demand supply and other various uh factors. Uh raw material is not something that is going 55:16 55 minutes, 16 seconds to affect the margins because it's a pass through model that we have. Uh so as you know as in the month of April the 55:24 55 minutes, 24 seconds raw material prices increased by about 40%. But our value addition also increased to that extent. So it is not 55:31 55 minutes, 31 seconds going to eat into the margins of the product that we sell. 55:36 55 minutes, 36 seconds Got it. So our business model gives us a cushion uh like we pass it on to our customers. Yes. 55:44 55 minutes, 44 seconds Got it. Okay. Thank you so much. 55:48 55 minutes, 48 seconds Thank you. Next question is from the line of Sarange Gupt from Swan Investments. Please go ahead. 55:58 55 minutes, 58 seconds Hello. Uh am I able? Yeah. Yeah. Thank you. Thank you for the followup opportunity. 56:04 56 minutes, 4 seconds Sir, I just wanted to understand like right now we are uh trying to understand how our special value added products and 56:11 56 minutes, 11 seconds specialtity are will pan out. So uh with current capacity what can be the peak revenue that one can look at before loop 56:19 56 minutes, 19 seconds comes in by before like by end of FIR 29 like or revenue growth that if you can help us with. 56:27 56 minutes, 27 seconds Yeah. So uh see we with the current asset base uh if we run at 100%. We are 56:34 56 minutes, 34 seconds looking at 2,00 to 2,200 crores kind of turnover 56:40 56 minutes, 40 seconds and sir how much of capeex will we have to do to achieve this number? 56:48 56 minutes, 48 seconds So uh this is with the existing sorry go ahead go ahead ma'am go ahead. 56:55 56 minutes, 55 seconds Yeah, I was saying that uh this is with the existing assets, right? So the question was on existing assets. We 57:02 57 minutes, 2 seconds might do some uh sustainance not might but yeah we'll have to do sustainance capex to keep the plants running but 57:09 57 minutes, 9 seconds other than that uh we expect uh small capeex going forward till the elite 57:17 57 minutes, 17 seconds project comes up as we want to have a strong uh capital discipline uh within our company and only those projects 57:24 57 minutes, 24 seconds which have very high ROI and which do not drain our uh cash flow or reserves will be undertaken. Sure 57:32 57 minutes, 32 seconds sir understood. Sir just one clarification I guess there there was some connectivity issue at my end. Uh you mentioned that the next year capex would be 70 crores. So if you can give 57:40 57 minutes, 40 seconds me a bifocation like how much will be maintenance capex and other capex. 57:45 57 minutes, 45 seconds So 1 1500 uh 15 cr rupes is new project 15 cr rupes is new project and the balance is sustenance and maintenance and this is for both the companies together. 57:55 57 minutes, 55 seconds Sure. Sir if you can uh like give us more details on the 15 crex on new project like what kinds of returns we can expect and where are we deploying this? 58:05 58 minutes, 5 seconds So also uh so so so this is slightly particular information that we're asking for uh because you know 58:13 58 minutes, 13 seconds disclosing each and every capeex may not be uh feasible on this call but this on an overall basis this 15 cr rupes is 58:21 58 minutes, 21 seconds going to give us a attractive IR of plus 20%. 58:28 58 minutes, 28 seconds Uh, sure sir. Thank you so much. I'll join back. 58:34 58 minutes, 34 seconds Thank you. Next question is from the line of sake Kapoor from Kapoor and Company. Please go ahead. 58:40 58 minutes, 40 seconds Yeah. Yeah. Thank you. Thank you uh for the opportunity. Sir G. As you mentioned about the capex to be at 70 K and still 58:48 58 minutes, 48 seconds you you did mention the fact that there will be significant reduction in terms of our borrowing uh closing balances for 58:56 58 minutes, 56 seconds 31st March 27. So if you could just specify numbers and what are we what path are we going to trade for the next financial year? 59:06 59 minutes, 6 seconds Yeah sure. So uh so sit as I mentioned to you the total repayment is around 85 cr rupes for the next year. 59:14 59 minutes, 14 seconds And uh we are trying to limit our borrowings for the next year to below 40 CR. So that is going to give me a leverage of 45 crores on the debt side. 59:26 59 minutes, 26 seconds Okay. So sir for this year sir on a on a console basis what is our long-term borrowing and uh how will this and the cost of fund also sir? 59:38 59 minutes, 38 seconds So the cost of the fund is uh in the range of between 9 to 10% on a consolidated basis and our total borrowance as I mentioned to you was 732 59:46 59 minutes, 46 seconds cr rupees which includes both short-term as well as long-term long-term is about 380 kores. Yes. 59:54 59 minutes, 54 seconds The long-term borrowings are about 380 crores. 1:00:01 1 hour, 1 second Yeah. Correct. Sir when we look at our performance for for this quarter and especially the consolidated one we did 1:00:08 1 hour, 8 seconds AITA margin of 12.6 and the absolute AITA number at 43 K. So taking the the 1:00:18 1 hour, 18 seconds scenario into play and the type of uh effort in the fabric pipeline which you are mentioning specially in terms of the 1:00:25 1 hour, 25 seconds speciality polymers and we increasing our uh percentage in the uh in the in the in the value added flim segment. H 1:00:34 1 hour, 34 seconds then the environment allows us uh to to uh extrapolate this number going ahead 1:00:41 1 hour, 41 seconds uh to be on the on the even on the conservative side the run rate to be maintained both in the terms of margin and the habitita number. 1:00:52 1 hour, 52 seconds Yeah, absolutely. I mean uh we have built up over past 12 to 15 months a very strong pipeline on both specialtity 1:01:00 1 hour, 1 minute polymers as well as uh vast films. So we are extremely confident that uh we are going to maintain or even exceed the run rate that we have seen so far. 1:01:22 1 hour, 1 minute, 22 seconds Mr. Kapoor, we cannot hear you. 1:01:34 1 hour, 1 minute, 34 seconds That was the last question of the day. I now hand the conference over to Mr. 1:01:38 1 hour, 1 minute, 38 seconds Behavcha for closing comments. Over to you, sir. 1:01:47 1 hour, 1 minute, 47 seconds I would like to thank all our stakeholders for their continued trust and support. U4 FI26 marks a decisive 1:01:54 1 hour, 1 minute, 54 seconds turning point for Esther Industries. We enter FYI27 with improved visibility, structural tailwinds, and a strengthened 1:02:02 1 hour, 2 minutes, 2 seconds competitive position across all our business segments. We remain committed to sustainable and profitable growth, the advancement of our circular economy 1:02:09 1 hour, 2 minutes, 9 seconds vision, and creation of long-term value for our stakeholders. We look forward to a significantly stronger FY27. And thank 1:02:17 1 hour, 2 minutes, 17 seconds you all for participating in today's call. Thank you. 1:02:22 1 hour, 2 minutes, 22 seconds Thank you very much. And on behalf of the Easter Industries Limited, that conclude this conference. 1:02:30 1 hour, 2 minutes, 30 seconds Thank you for joining us and you may not disconnect your lines.