Flair Writing Industries Limited — Q3 FY26

Flair Writing Industries Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=1oVnSMJ7nPc Published: 3 months ago

0:04 4 seconds Ladies and gentlemen, good day and welcome to Flare Writing Industries Limited Q3 and 9M MF FY26 earning 0:12 12 seconds conference call. As a reminder, all participants lines will be in the listenonly mode and there will be an opportunity for you to ask questions 0:19 19 seconds after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on 0:27 27 seconds your Touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Miss Darshi Jane. Thank you and over to you. 0:37 37 seconds Thank you. Good morning everyone. 0:40 40 seconds Welcome to the flare writing industries Q3 and 9 months FI26 earnings conference call. Today on the call we have Mr. 0:48 48 seconds Vimal Shandraur managing director, Mr. 0:50 50 seconds Mohit Raturime director, Mr. Sumit Ratur Director and Mr. Alpesh Pural the chief financial officer. A short disclaimer 0:59 59 seconds before we start this call. This call will contain some forward-looking statements which may be based upon our beliefs, opinions and expectations of 1:08 1 minute, 8 seconds the company as of today. These statements are not a guarantee of future performance and will involve unforeseen 1:15 1 minute, 15 seconds risks and uncertainties. With that, I would now like to hand over the conference call to Mr. Vimalchandra, the managing director for his opening remarks. Thank you and over to you sir. 1:27 1 minute, 27 seconds Good morning and welcome everyone. Thank you for joining our Q3 and 9 months FY26 1:34 1 minute, 34 seconds earning call. I hope everyone had the opportunity to go through our investor presentation and press release that have 1:42 1 minute, 42 seconds been uploaded on the exchange. We are delighted to present a strong Q3 FY26 performance highlighting by a robust 1:50 1 minute, 50 seconds 20.1% year-on-year revenue growth, a 25.7 increase in Eida and 13.2 increase in 1:59 1 minute, 59 seconds PET. We are forming solid momentum and resilience of our business. 2:05 2 minutes, 5 seconds Our performance in Q in 9 months FY26 has been particularly encouraging and with a strong 18.6 Six incre% increase 2:14 2 minutes, 14 seconds in revenue year on year of revenue growth has consolid consistently surpass surpassed our stated guidance of 2:23 2 minutes, 23 seconds delivering a 15% Kazar reflecting a sustained momentum across our business and and the strength of our underlying 2:31 2 minutes, 31 seconds growth drivers. Hence we are confident in surpassing our guidance of 15% for FY26. 2:40 2 minutes, 40 seconds We are also honored with the export excellence award 2325 at the Plex concert platinum jubilee celebration 2:47 2 minutes, 47 seconds further reinforcing our leadership as a keep exporter of writing instruments and stationary from India for over four 2:54 2 minutes, 54 seconds decades in line with our strong performance and positive outlook the board of directors has approved an intim dividend of 50 3:03 3 minutes, 3 seconds pesa per share representing 10% of face value of our equity shares going forward Our focus will continue to be on driving 3:11 3 minutes, 11 seconds innovations supported by scalable and sustainable operations and a strong brand of foundation enabling us to 3:19 3 minutes, 19 seconds deliver a long-term growth and maintain industry leadership in the years to come. Yeah, it I now hand over the call 3:26 3 minutes, 26 seconds to Mr. Alpes Porwal our CFO to discuss in detail about our Q3 FY26 and 9 months FY26 financial performance. Thank you. 3:40 3 minutes, 40 seconds Thank you Ambishar. 3:43 3 minutes, 43 seconds Let's review the consolidated financial performance for Q3 FI26. 3:49 3 minutes, 49 seconds Revenue from operations for Q3 FI26 stood at INR 317.7 crores an increase of 20.1% yearonear. 4:01 4 minutes, 1 second The gross profit for the quarter was at INR 161.7 crores which increased by 4:08 4 minutes, 8 seconds 17.9% over the corresponding quarter of the previous year. Gross profit margin came 4:15 4 minutes, 15 seconds in at 50.9% a decrease of 95 bips yearonear. While it is closer to the historical range it 4:23 4 minutes, 23 seconds decreased mainly due to a change of product mix. 4:29 4 minutes, 29 seconds AITA for the quarter was at INR 56.9 crores registering a growth of 25.7% 4:37 4 minutes, 37 seconds yearon year. AITA margin stood at 17.9% an increase of 80 bips year on year as 4:46 4 minutes, 46 seconds we see the operating leverage kicking in the incremental growth in translating more directly into AITA reinforcing our 4:55 4 minutes, 55 seconds confidence in the various business transformation initiatives we undertake right from increasing automation to 5:02 5 minutes, 2 seconds deepening distribution relations for our wide range of innovative products. 5:10 5 minutes, 10 seconds Profit after tax for the quarter was at INR 33.1 crores increasing by 13.2% 5:18 5 minutes, 18 seconds on a yearon-year basis. PAT margins for the quarter were 10.4%. 5:24 5 minutes, 24 seconds The PAT grew at a slower pace than AITA primarily because Q3 FY25 had a higher 5:31 5 minutes, 31 seconds other income. In Q3 FI25 interest from bank FD uh sorry in Q3 FI25 5:40 5 minutes, 40 seconds there was an additional uh income of 3.2 crores due to sale of fixed asset profit 5:48 5 minutes, 48 seconds on sale of fixed assets and investments and also there was a higher interest on the FD amount. 5:58 5 minutes, 58 seconds Now the FD amount was an account of use of IPO proceeds for capex and expansion activities. Read it properly. 6:07 6 minutes, 7 seconds Our pence business grew by 7.3% yearonear in Q3 FY26 and overall by 4.7% 6:17 6 minutes, 17 seconds in 9 month FY26. Our Pence business continues to maintain its leadership in India and has been a consistent and 6:25 6 minutes, 25 seconds reliable compounder driven by own brand sales. 6:30 6 minutes, 30 seconds Our performance was further driven by the remarkable growth trajectory of our creative and steel bottle and houseware businesses. 6:39 6 minutes, 39 seconds These segments collectively delivered an impressive 78.5% growth year on year. 6:45 6 minutes, 45 seconds The creative division grew 71.8% yearonear to 211 crores in 9 month FY26 6:56 6 minutes, 56 seconds while the steel bottles and houseware segment rose to 102.2% year-onear to 64 crores. 7:04 7 minutes, 4 seconds For Q3 FY26 the growth of both these segments stood at 68.7% and 116.2% 2% respectively. 7:16 7 minutes, 16 seconds Over time, we also do anticipate our revenue mix to shift with creatives and steel bottles contributing a 7:23 7 minutes, 23 seconds progressively larger share to the overall portfolio. 7:27 7 minutes, 27 seconds Across these categories, our efforts to introduce novel additions and grow the lineup of portfolio has enhanced our shelf visibility fueling the rob. 7:40 7 minutes, 40 seconds During the quarter, we expanded our portfolio by introducing 28 new products across all range and categories. As on 7:49 7 minutes, 49 seconds December 31, 2025, we have a total of 240 product offerings in creatives. 7:58 7 minutes, 58 seconds Overall for the quarter, our total own brand sales grew by 23.3% year-onear to 8:05 8 minutes, 5 seconds INR 286 crores of which the domestic own brand sales grew by 22.5% and export own brand brands grew by 29.9%. 8:17 8 minutes, 17 seconds This quarter strong performance in the export sales was also supported by growth in OEM exports by 22.4% 4% 8:25 8 minutes, 25 seconds bringing the overall export growth to a healthy 26.5%. 8:31 8 minutes, 31 seconds During the first 9 months of FI26, we delivered strong growth with revenue of rupees 927.2 crores registering an 8:40 8 minutes, 40 seconds increase of 18.6% yearonear and IITa of rupees 166.8 8 8:47 8 minutes, 47 seconds crores showing a 20.9% increase year on year and PAT of rupees 8:54 8 minutes, 54 seconds 104.8 crores showing an increase of 18.8% yearon year. This growth came from both 9:03 9 minutes, 3 seconds domestic and export markets. Domestic own brand sales stood at rupees 752.79 9:12 9 minutes, 12 seconds crores reflecting a 21.3% year-on-year growth while export own 9:19 9 minutes, 19 seconds brand sales reach rupees 88.38 crores registering an impressive 28.8% 9:26 9 minutes, 26 seconds 8% cr together own brand revenues total rupees 841.18 9:35 9 minutes, 35 seconds crores marking a 22% increase over the previous year. Export 9:42 9 minutes, 42 seconds OEM sales contributed rupees 67.37 crores with a 22.6% growth. Overall 9:51 9 minutes, 51 seconds domestic sales amounted to rupees 771.4 4 crores up 17.2% and export sales stood 10:01 10 minutes, 1 second at rupees 155.75 crores up 26.1%. 10:08 10 minutes, 8 seconds With respect to the domestic OEM business, our earlier earlier OEM relationships have reduced to zero as 10:15 10 minutes, 15 seconds indicated in the previous calls. Despite this, we have exceeded our stated growth targets even though performance was 10:23 10 minutes, 23 seconds moderated by domestic OEM segment as highlighted earlier. We are also to please we are also pleased to report 10:30 10 minutes, 30 seconds that new customer engagements through our FlowMax subsidiary have added a fresh revenue stream of rupees 6 crores under domestic OEM. 10:40 10 minutes, 40 seconds on capex and expansion initiatives. The new WCARD facility is slated to become partially operational in Q4 which will 10:48 10 minutes, 48 seconds further strengthen our manufacturing capacity in writing instruments and stationary. 10:54 10 minutes, 54 seconds At our FlowMax Suda facility, the total capex as of 9 month FY26 stands at 9.6 6 11:03 11 minutes, 3 seconds crores primarily directed towards plant and machinery and the subsidiary continues to contribute positively to 11:10 11 minutes, 10 seconds the creative segment. In addition, we have invested 8.28 crores in second new building 11:18 11 minutes, 18 seconds currently under construction which is expected to be completed by Q1 FY27. 11:25 11 minutes, 25 seconds On the qualitative front for the results as highlighted by our MD sir the overall revenue growth as of 9 month FY26 has 11:35 11 minutes, 35 seconds consistently outperformed our stated guidance of 15% kagger backed by sustainable and scalable 11:42 11 minutes, 42 seconds growth delivered by our two diversified business segments that is creative segment and steel bottles and houseware segment. We have 11:50 11 minutes, 50 seconds high growth visibility over the next two years and thus are confident in delivering higher growth trajectory than our current guidance in the coming two 11:59 11 minutes, 59 seconds years. While we still have levers to outperform the stated growth, currently we would like to exercise prudence but 12:07 12 minutes, 7 seconds remain open to adjusting our guidance based on our outlook to ensure that the exceptional growth trajectory in our creative segment 12:16 12 minutes, 16 seconds continues well into the future. We are executing a set of strategic initiatives designed to strengthen our foundation 12:23 12 minutes, 23 seconds and expand our opportunities. Our in-house manufacturing share has risen to 75% enhancing oper operating 12:32 12 minutes, 32 seconds efficiency, quality control and scalability. We are preparing a series of new product launches that will 12:38 12 minutes, 38 seconds broaden our portfolio and keep us aligned with evolving customer preferences. 12:45 12 minutes, 45 seconds Strategic collaborations are also central to our momentum. 12:50 12 minutes, 50 seconds Our licensing partnership with Disney continues to bring character-based products to market. Deepening engagement with younger audiences while our 12:59 12 minutes, 59 seconds distributing distribution alliance with Mapet France positions us to deliver premium creative products to domestic and global customers. 13:08 13 minutes, 8 seconds In addition, the FlowMax stationary JV is expected to commence manufacturing of wooden pencils and also significantly 13:17 13 minutes, 17 seconds boost capacity and sharpen our focus on polymer pencils, erasers, sharpeners, and allied categories. 13:26 13 minutes, 26 seconds Together, these initiatives are not only driving current performance, but are carefully designed to sustain and 13:34 13 minutes, 34 seconds accelerate growth in the creative segment. ensuring that we continue to out outperform guidance and deliver long-term value for our shareholders. 13:45 13 minutes, 45 seconds in steel bottles and houseware segment. 13:47 13 minutes, 47 seconds We are driving growth through design innovations with in-house leering and coloring, strong general trade 13:54 13 minutes, 54 seconds distribution network supported by modern retail, quick commerce and e-commerce with a dedicated distribution team and 14:03 14 minutes, 3 seconds expanding our portfolio to 50 plus SKUs with continuous new launches to meet all season demands. 14:11 14 minutes, 11 seconds Having operationalized the FlowMax JV in this year and Map Partnership starting to contribute to revenue, we are also 14:18 14 minutes, 18 seconds exploring opportunities for inorganic acquisition in the fast growing segments of our business. 14:24 14 minutes, 24 seconds Looking back on the quarter, we take pride in the solid results achieved and extend our appreciation to our 14:32 14 minutes, 32 seconds stakeholders for their continued support. With this momentum, we are focused on sustaining progress and driving the next phase of growth. 14:43 14 minutes, 43 seconds Now I open the floor for question and answer session. Thank you. 14:50 14 minutes, 50 seconds So I'll now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to 14:57 14 minutes, 57 seconds remove yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. Ladies and gentlemen, 15:06 15 minutes, 6 seconds we will wait for a moment while the question queue assembles. 15:14 15 minutes, 14 seconds The first question comes from the line of couple from Carneal Asset Management. Please go ahead. 15:22 15 minutes, 22 seconds Thank you. And uh first of all, congratulations on a great set of numbers. Uh my uh first question is uh can you give uh highlights about what 15:31 15 minutes, 31 seconds would be the primary and secondary sales in the uh creative and uh steel bottle segment? 15:40 15 minutes, 40 seconds Yeah. Uh so when we talk about the primary sales in uh creative uh Q3 we 15:47 15 minutes, 47 seconds did about 77 crores and uh in 9 months uh in 26 which is 2101 cr that is of 15:56 15 minutes, 56 seconds creative which is 72% uh up than last year and when we talk about the household category and steel bottle 16:04 16 minutes, 4 seconds category uh Q3 number is at 25 the primary number is at 25 crores in Q3 and 16:11 16 minutes, 11 seconds uh 9 months uh number is at 64 crores which is 102% up uh than what we did last year. 16:20 16 minutes, 20 seconds Uh so sir uh the can can we like indicate like how much the secondary sales would have happened out of this? 16:29 16 minutes, 29 seconds So more or less if you say uh when we talk about the secondary sales is at par with the primary sales uh because this 16:37 16 minutes, 37 seconds the distributors or the supertoers would keep stock of maximum 45 days to 60 days. They would not [clears throat] uh you know invest in a company more 16:45 16 minutes, 45 seconds than that. So the secondary sales is also at par with uh the primary numbers. 16:52 16 minutes, 52 seconds Sure. Sure. Uh my next question is on the creative segment. Uh within this uh segment uh which product uh would be doing the maximum? 17:04 17 minutes, 4 seconds Uh it's uh in creative segment there are almost 18 categories and most of the uh products are doing very well. 17:15 17 minutes, 15 seconds Okay. 17:16 17 minutes, 16 seconds New product launches that sorry sorry to interrupt. uh couple there is a lot of background disturbance from your 17:23 17 minutes, 23 seconds end now it's fine okay you can proceed 17:30 17 minutes, 30 seconds so so when you talk about the creative uh see uh sharing the data would be a little sensitive because of the 17:37 17 minutes, 37 seconds competition uh uh but at the same time we can say uh in creative over the years you have launched 18 uh categories of 17:46 17 minutes, 46 seconds products where all the new product launches that are you know which are standing out in the market are all to do with the innovative small small 17:55 17 minutes, 55 seconds innovative uh uh you know designs and the packaging what we have initiated. Uh so that's the it's and the result is the 18:04 18 minutes, 4 seconds uh combination of the products and as well as the placement what we are doing in the in the stores. uh we are increasing the throughput uh in each and 18:13 18 minutes, 13 seconds every outlet and uh we are making sure that you know all the innovative products whatever we have launched in last one and a half year are placed at the retail level. 18:23 18 minutes, 23 seconds Got it. Got it. Got it. And how much would have been the volume growth in creative segment for us this quarter? 18:30 18 minutes, 30 seconds uh see in in terms of volume it is very difficult because uh creative products does not go in terms of volume but yes 18:38 18 minutes, 38 seconds just to answer that question in terms of uh volume in creative uh you know the 18:44 18 minutes, 44 seconds volume growth is as big as 141%. If you take uh volume 18:54 18 minutes, 54 seconds okay and because see in in terms of volume uh you know a set of crayons has the 12 colors 19:02 19 minutes, 2 seconds 24 colors a set of uh coloring range in terms of sketch pen they have uh you know 12 and 24 so it's very difficult to 19:11 19 minutes, 11 seconds uh calculate volume but yes uh for your number it's about 141% growth got it got it and I guess similar would have been in previous quarter also. 19:23 19 minutes, 23 seconds Yeah, in previous quarter also it's similar. 19:27 19 minutes, 27 seconds Okay. And uh within the pen segment if you can give a break up of the realization growth and volume growth. 19:34 19 minutes, 34 seconds So when we talk about the pen as a category overall in Q3 we have grown by 7%. And in overall 9 months we have 19:42 19 minutes, 42 seconds grown by 5%. When we talk about the volume, it is about 6% in Q3 and 3% volume in 9 months. And in and to give 19:52 19 minutes, 52 seconds you uh some more insights, if we talk about our own brands, the volume has increased by 18% of our own brands and 20:00 20 minutes uh in 3 months and uh when we talk about 9 months, the volume of our own brand sales has gone up by 11%. 20:08 20 minutes, 8 seconds Great sir. Great sir. Thank you for answering all the questions. All the best to you. Thank you. 20:14 20 minutes, 14 seconds Thank you. The next question comes from the line of Arada Jen from BNK Securities. Please go ahead. 20:22 20 minutes, 22 seconds Thank you. Uh congratulations to the team on the good set of numbers. Couple of questions from my side. First maybe I'll start with the pen segment. So uh 20:31 20 minutes, 31 seconds pens witnessed good growth compared to the last couple of quarters that we've seen. Uh however, if you see on a 9 month basis, it's still below our guided 20:40 20 minutes, 40 seconds number of high single digit. So what is the plan around that? Uh for the full year where do we see this number and for 20:48 20 minutes, 48 seconds say FI27 what would be our guidance on the pen side? That's my first question. 20:56 20 minutes, 56 seconds So Aana just to answer your uh you know question on pens uh as we mentioned uh you know overall we have grown by 5%. Uh 21:06 21 minutes, 6 seconds guided by a strong Q3 numbers of 7%. uh going forward in Q4 also we are expecting a similar uh trend because of 21:13 21 minutes, 13 seconds the run rate and the momentum going uh our way in this category. So and we have always maintained that you know going 21:22 21 minutes, 22 seconds forward also in 2728 we would be uh you know targeting high singledigit number 21:29 21 minutes, 29 seconds in that uh because still we feel there is lot of scope in this category going forward 21:37 21 minutes, 37 seconds and uh in our pen segment I believe hower XO is our bestselling product is that right yeah yeah 21:45 21 minutes, 45 seconds so would it be possible for you to share that in terms of in the pen segment which is like 67 68% of our overall 21:52 21 minutes, 52 seconds revenue. How much would houseer expo be contributing in the pen side? 21:59 21 minutes, 59 seconds See Arana uh we would not like to share the number uh on a call but if you want anything in personal we can give you 22:07 22 minutes, 7 seconds that but uh because keeping competition in mind it's very difficult to answer this question but yes it uh uh uh just 22:16 22 minutes, 16 seconds to answer that EXO does not contribute uh a a major a major uh number in the overall pen category. 22:27 22 minutes, 27 seconds Understood. And in terms of average realization of pens uh h have we seen any improvement there was say last year 22:35 22 minutes, 35 seconds uh it's it's stable it's stable at 5.4 rupees per piece. 22:42 22 minutes, 42 seconds Okay. And uh in the export side of things which are the key geographies for us for pence currently and are we seeing 22:50 22 minutes, 50 seconds any impact of US tariffs on us and from EU FDA perspective do we see any benefit to flow to us from that perspective on the export side of things? 23:01 23 minutes, 1 second See in as far as export is concerned uh you know we have been doing very very good uh in US, UAE, uh Switzerland, 23:12 23 minutes, 12 seconds Japan, Colombia, the the South American market. So all these countries have been growing and to answer your question on 23:20 23 minutes, 20 seconds the US tariffs uh US tariffs see uh we were never uh dependent on US as a 23:28 23 minutes, 28 seconds export. uh you know overall if you look at it it was only 3% of our total dropline but uh you know it has not 23:36 23 minutes, 36 seconds impacted us in any way uh US tariffs uh and when we talk about uh EU uh tariff 23:44 23 minutes, 44 seconds uh you know uh declaration see we are already exporting to European countries and with the new trade deal we will 23:51 23 minutes, 51 seconds definitely gain more momentum in our entire range of products uh to European nations and increase our exports in near future. 24:00 24 minutes Understood. And in the pen side, have we seen any market share gain in the last say 6 n months period uh versus what we 24:09 24 minutes, 9 seconds were at a year back? And what would be our current market share in the pen segment? 24:16 24 minutes, 16 seconds Definitely we have gained our market share in pen because if you look at the overall our growth in our own brands 24:24 24 minutes, 24 seconds which is you know which I consider as a major uh business uh in pens uh overall growth is almost 18% volume share we 24:32 24 minutes, 32 seconds have gained uh in our own brands so which is very high uh you know compared to the competition. So we are not losing 24:42 24 minutes, 42 seconds or we are not uh giving it up to any of the competition which is coming up. Uh we are fighting in each in every category. 24:51 24 minutes, 51 seconds Understood. Just on creatives couple of questions. uh one I wanted to understand uh we are currently 75% in-house 24:58 24 minutes, 58 seconds manufacturing right so what's the plan going ahead for say the next one year are we planning to increase that manufacturing capacity further and how 25:07 25 minutes, 7 seconds much is the capacity utilization there and are we seeing any you know improvement in our margins coming directly because of the in-house 25:15 25 minutes, 15 seconds manufacturing that we've shifted to see with the with the new facility coming in we'll definitely increase our 25:23 25 minutes, 23 seconds capacity in creative uh you know currently which is 75% uh we tend to bring it uh to uh 80% plus uh in coming 25:33 25 minutes, 33 seconds quarters and when we talk about the profitability margins uh improving I would say we would be uh be stable at 25:42 25 minutes, 42 seconds the AIA level which we are going currently okay and from perspective uh if I heard 25:50 25 minutes, 50 seconds it correct we've already done close to around 9 10 crores of capeex uh how much more capeex are we planning to do there 25:57 25 minutes, 57 seconds and what's the kind of revenue potential that we're expecting from the flowax facility uh and by when can we expect 26:04 26 minutes, 4 seconds those numbers to start flowing in on our creative number u to answer your question Arna Flowmax 26:11 26 minutes, 11 seconds is already contributing to the uh revenue uh of creative out here we started manufacturing in this uh 26:19 26 minutes, 19 seconds financial year uh so far you're right we have uh done this uh investments of more than 9 crores in plant and machinery in 26:27 26 minutes, 27 seconds this year and in the pipeline is the new facility which we are coming up with the additional unit which we want to bring 26:34 26 minutes, 34 seconds up in uh at Surat uh we have uh we expect an additional 8 26:43 26 minutes, 43 seconds crores of additional capitalization in terms of building and uh plant and machinery 26:51 26 minutes, 51 seconds okay I mean creative Is are have you started exporting or it's all domestic that we are currently doing? 26:59 26 minutes, 59 seconds Export also we have started but it's very small uh compared to what we are doing in domestic. 27:05 27 minutes, 5 seconds It's too it's too early. We are still catering to the uh domestic demand. 27:10 27 minutes, 10 seconds Understood. Just last question from my end on the steel bottle side. So fair to assume that whatever sales we are currently doing in the steel bottles is 27:18 27 minutes, 18 seconds coming from stainless steel bottles or there's also some bit which started coming from the vacuum insulated tumblers which are fairly new compared 27:26 27 minutes, 26 seconds to the uh ste stainless steel bottles and which are the major channels where we are selling these and from price 27:33 27 minutes, 33 seconds point perspective are we competitive to the other leaders in the market or we are priced say lower or premium to them. 27:42 27 minutes, 42 seconds So to answer this question I would say uh you know when you talk about the vacuum uh steel tumblers it include it's 27:49 27 minutes, 49 seconds included in steel bottles only it is a part of it and we have been always manufacturing from day one steel tumblers and uh steel flask all are the 27:58 27 minutes, 58 seconds part of uh steel as a category steel bottle as a category and uh other than that uh you know uh when we talk about 28:06 28 minutes, 6 seconds the contribution I would say uh the overall sales has been contributed mainly and by all three division which 28:14 28 minutes, 14 seconds is general trade, modern trade and uh ecom and in terms of capacity utilization 28:21 28 minutes, 21 seconds where are we in the steam bottle side and do we plan to also expand in the capacity utilization like capacities in the steam bottles going ahead in the next one year? Any plans on that? 28:32 28 minutes, 32 seconds Yeah. So going forward as we progress more and increase the sales and uh you know have a more penetration into domestic market, we definitely look uh 28:39 28 minutes, 39 seconds into adding uh more facility and also maybe increase the category in this particular segment. 28:47 28 minutes, 47 seconds Understood. I'll maybe join back with you for any follow-ups. Thank you so much and all the best. 28:53 28 minutes, 53 seconds The next question comes from the line of Sneha Talia from Noama Wealth Management Limited. Please go ahead. Hi, good afternoon team and congratulations on 29:01 29 minutes, 1 second great set of numbers and thanks for the opportunity. I'll be quick with just two questions from my end. Uh firstly there have been five consecutive quarters that 29:10 29 minutes, 10 seconds you have exceeded volumes now which is over 15 or percent volume growth. Um now the ask rate is just about 6% like you 29:18 29 minutes, 18 seconds have already mentioned on the call that you know you will be delivering 15% plus for the next two years but is there any specific uh guidance that you would want 29:26 29 minutes, 26 seconds to give us uh uh uh for you know this year as a whole as well as next year. 29:34 29 minutes, 34 seconds So I think uh for future guidance of course uh as you know with the current momentum that we are going we are like 29:41 29 minutes, 41 seconds you know we are quite sure that we'll outperform our current guidance of 15%. 29:45 29 minutes, 45 seconds And in the near future also with the new pulsard facility also coming fully commissioning in Q1 of next year. I think we are confident that uh the 29:54 29 minutes, 54 seconds momentum uh should continue and we will definitely uh you know outperform our 15% guidance. 30:01 30 minutes, 1 second Do you miss any numbers there? 30:04 30 minutes, 4 seconds [laughter] 30:05 30 minutes, 5 seconds Uh no I think I would just stick to the momentum that we are going on and uh as you have seen in the recent past I think in the near future we will try to continue that. Sure. 30:16 30 minutes, 16 seconds And it's been two consecutive quarters. 30:18 30 minutes, 18 seconds We've seen a great runup in your export own brand business. Uh could you highlight what are the differentiated changes that you're doing here? Is it 30:26 30 minutes, 26 seconds addition of new customers that you're doing or is it you know certain specific geography that you started sitting which 30:33 30 minutes, 33 seconds is working well or is it anything to do with the China rebate you know coming down wherein you know we are replacing China in any particular geography? 30:43 30 minutes, 43 seconds No, I would say uh it is uh you know as we've discussed earlier also it is to do with the kind of products which we have 30:50 30 minutes, 50 seconds launched in a year and a half. Uh these products are gaining momentum not only in India but even in exports market uh 30:58 30 minutes, 58 seconds and as I mentioned earlier regarding the export sales we doing extremely well in the South American market the Middle East market uh with a stable American business and European business. 31:11 31 minutes, 11 seconds Noted. Uh just one or two bookkeeping questions from Alp sir. Uh what would be the sustainable level of other income? 31:18 31 minutes, 18 seconds We've seen a significant drop. I know you mentioned the reasons in the opening remark but what would be the sustainable number here and also what would be our 31:25 31 minutes, 25 seconds working capital day standing at at this point of time and in case you can give receivables numbers also separately. 31:31 31 minutes, 31 seconds All right. Uh yeah you you heard me right that you know the PAT uh if I to compare the PAT from Q2 to Q3 uh there 31:38 31 minutes, 38 seconds was just one of items which we saw in Q2 and hence uh uh the difference out here the PAT uh the other income we don't uh 31:47 31 minutes, 47 seconds I mean just income from my foreign exchange fluctuation and uh uh the uh interest on FD and I expect it to 31:56 31 minutes, 56 seconds continue the range of 3 to four crores uh per quarter not more than that. Uh 32:04 32 minutes, 4 seconds and as far as working capital is concerned, we say the working capital in the third quarter normally is on a rise 32:12 32 minutes, 12 seconds due to a higher stock stocking of uh goods which we have seen like especially from whatever we import from China 32:20 32 minutes, 20 seconds because of the Chinese New Year uh holidays. Uh we stock those items in advance. uh Q4 is the uh strongest for 32:30 32 minutes, 30 seconds us and where we see the movement on all fronts right from the sales point of view to also getting into the 32:38 32 minutes, 38 seconds consumption or the margins perspective because of the product mix and the larger uh volume of sales. So we expect 32:46 32 minutes, 46 seconds the working capital cycle to reduce there and as I have stated in the earlier calls also the working capital 32:53 32 minutes, 53 seconds cycle will bring it down by 10 days at least in the by end of this year. 33:01 33 minutes, 1 second Understood. Thanks. Thanks your team and all the very best. Thank you. 33:08 33 minutes, 8 seconds Thank you. A reminder to all the participants that you may press star and one to ask a question. The next question comes from the line of Raia Mahata from 33:16 33 minutes, 16 seconds Green Edge Wealth. Please go [clears throat] ahead. 33:20 33 minutes, 20 seconds Thank you. Um uh many congratulations to the team for a very solid set of numbers especially given the high base. Um so 33:28 33 minutes, 28 seconds you know the first question is basically on the uh creatives uh so you did on the export side right so you did mention that there is negligible exports on the 33:37 33 minutes, 37 seconds creative side but if you could highlight uh are we exporting anything on the bottle side. 33:44 33 minutes, 44 seconds So uh that is also very negligible uh only a couple of crores uh we have 33:50 33 minutes, 50 seconds exported but yes uh uh in near future we will focus on export market as well. we are developing few products for them. 34:00 34 minutes So is it just product development that is holding us back from starting exports in these two new segments? I think we 34:07 34 minutes, 7 seconds are still focusing on domestic market uh and developing products which caters to domestic market uh initially and then uh 34:16 34 minutes, 16 seconds in the meanwhile in uh you know coming quarters we will be focusing on export market as well right and uh you know on the bottle side 34:25 34 minutes, 25 seconds right so suddenly our quarterly run rate you know which used to be at around 12 crores uh has gone up to around 25 crores since the last two quarters Q2 34:32 34 minutes, 32 seconds and Q3 so anything specific there because uh you know uh like you know because of the anticipation of BIS a lot 34:40 34 minutes, 40 seconds of other competition you know they had preloaded inventory imports from China right and um you know like for uh lot of 34:47 34 minutes, 47 seconds our peers you know that inventory probably has you know uh gotten extinguished so uh is that one of the reasons why we are seeing a pickup in 34:55 34 minutes, 55 seconds our bottles uh you know quarterly run rate uh so mainly to do with uh you know the 35:03 35 minutes, 3 seconds new product development which was uh due to be launched in Q2 and Q3 uh you know so we did that and the traction was good 35:11 35 minutes, 11 seconds in the in those uh new development developed uh products so that is the main reason why we have been able to 35:19 35 minutes, 19 seconds because earlier we had very few products to cater in domestic market but now we have developed the entire range and it's a ongoing process which will do it for 35:28 35 minutes, 28 seconds next few quarters now since you know the nonBS inventory would have probably been exhausted from 35:35 35 minutes, 35 seconds the system post the festive. Would you now say that you all are on an equal footing versus your uh peers on the 35:42 35 minutes, 42 seconds bottle side as far as the trade channel acceptability is concerned or are we still focused on you know uh modern 35:49 35 minutes, 49 seconds trade uh ecom uh as the primary channels for bottle? 35:54 35 minutes, 54 seconds See yes uh you know but it will take more time for us to be in the category of our competition. uh uh you know our 36:03 36 minutes, 3 seconds base is very small compared to what they are doing. Uh so I think uh another couple of years and then you know it 36:10 36 minutes, 10 seconds will be fair for everybody to compare us with the competition. 36:17 36 minutes, 17 seconds Right. Right. Right. And you know uh one thing on the pen side right and I um I'm sorry to harp on this again but you know 36:25 36 minutes, 25 seconds 5% revenue growth when we look at it from a 9 months perspective. you did call out that your own brand uh revenue growth has been higher, right? But but 36:34 36 minutes, 34 seconds but you know when do we see that you know overall uh you know uh uh the uh OEM business also uh you know kind of uh 36:42 36 minutes, 42 seconds picking up because especially if you see the OEM numbers they have started looking better and uh I believe you also 36:49 36 minutes, 49 seconds uh you know uh completely uh shut down the business to that uh one OEM customer who was uh you know uh in any case 36:58 36 minutes, 58 seconds bearing down their revenues right so uh in that situation then when do we see you know that own brand growth kind of 37:04 37 minutes, 4 seconds starts reflecting in the overall pens growth that we deliver. 37:10 37 minutes, 10 seconds Yeah, I think uh you know in pen as a category there are so many different verticals we are catering to. So uh you 37:19 37 minutes, 19 seconds know it's an ongoing process where one category would uh do well in you know couple of quarters and there would be 37:26 37 minutes, 26 seconds another category doing uh you know you know just struggling. But I would say overall if you look at the numbers, if 37:34 37 minutes, 34 seconds you look at the overall volume growth, uh you know we are not nowhere losing the market share or giving it up to the 37:44 37 minutes, 44 seconds competition. uh even at the high base where we are uh you know we have been growing at 18% uh in our own brands in 37:53 37 minutes, 53 seconds terms of volume uh you know so I I would say uh the OEM 38:02 38 minutes, 2 seconds used to be a significant part of our top line but going forward uh you know we are focusing more and more on our own 38:09 38 minutes, 9 seconds branded sales because uh you know uh OEM business is totally dependent on them and uh you know uh quarter on quarter they keep on changing their forecast so 38:18 38 minutes, 18 seconds it's uh so we would rather focus on our own brands so uh you know the OEM business in any 38:26 38 minutes, 26 seconds case so the problematic OEM customer anyway so the revenue recorded in this quarter would be zero right from them 38:34 38 minutes, 34 seconds uh in domestic yes aa so this is for the domestic but in exports it's still continuing right yeah export is continuing and it's 38:42 38 minutes, 42 seconds growing also So our overall OEM exports has grown by 24% in 9 months. 38:51 38 minutes, 51 seconds So but then do we see this converging somewhere you know our own brands have been doing very well and you know but the overall pens category growth and you 38:59 38 minutes, 59 seconds know that was my primary question that when do we see this kind of converging or you know at least coming you know close to the own brand revenue growth number. 39:11 39 minutes, 11 seconds So overall this whatever growth we are showing is our own brand uh growth only uh you know our own branded sales in pen 39:20 39 minutes, 20 seconds as a category has gone up by uh 12%. Uh you know which is which is uh reasonably 39:28 39 minutes, 28 seconds better than what the competition is showing but I would say uh 12% in our own brand shows the the kind of strength 39:35 39 minutes, 35 seconds what we have in our uh brands as well as our distribution capabilities. uh so I would say uh going forward this should 39:43 39 minutes, 43 seconds stabilize uh keeping in mind the OEM ups and downs in the in the business. So that's the reason we are always focusing on high singledigit uh uh growth. 39:55 39 minutes, 55 seconds So just to clarify 9 months pen revenue growth is 5%. What is the 9 month own brand pen revenue growth? Is that is the 40:04 40 minutes, 4 seconds number 12% or 12% Q3? 40:08 40 minutes, 8 seconds 12% is a Q3 number. 9% is our own brand sales for 9 months. 40:15 40 minutes, 15 seconds Okay. And volume growth for 9 months. 40:18 40 minutes, 18 seconds Volume growth for 9 months is 11%. Our own brand. 40:25 40 minutes, 25 seconds Understood. So, okay. So, the gap is like a 4% sorry to interrupt. Uh you may rejoin the join. 40:32 40 minutes, 32 seconds Yeah. Thank you. Thank you. 40:35 40 minutes, 35 seconds The next question comes from the line of Mr. Aurora from Aurora Wealth Advisor. Please go ahead. 40:42 40 minutes, 42 seconds Uh thank you. Thank you for the opportunity. Am I audible? Yes sir, you are audible to us. 40:48 40 minutes, 48 seconds Yeah, great. Thank you. So sir um first question is on the creative side um you know one on the 40:57 40 minutes, 57 seconds uh market in general and then our strategy in particular um you know so we have subcategories inside creatives like 41:06 41 minutes, 6 seconds mechanical pencils, markers, drawing instruments etc. Now you know if you can help us understand um out of these 41:15 41 minutes, 15 seconds subcategories you know which are the biggest categories and is our strategy like are we focusing on a few of these 41:23 41 minutes, 23 seconds uh big subcategories or we creating a large basket to you know be available at 41:29 41 minutes, 29 seconds all all points uh in these subcategories and then I have a followup question on 41:37 41 minutes, 37 seconds the strategy as well. Yeah. So basically we are focusing on three main categories which is to do with the scholastic range 41:45 41 minutes, 45 seconds uh office supply range and the uh the gifting kit range. So these three are the broader categories where we are 41:53 41 minutes, 53 seconds focusing and our main growth has also come in this as a category. Going forward we would be in coming future a 42:01 42 minutes, 1 second few quarters later we would be focusing on coloring range as well. 42:06 42 minutes, 6 seconds All right. Thank you. And sir um you know uh in the past we've mentioned that uh we have just we started we've 42:15 42 minutes, 15 seconds just started by rolling out into 68,000 outlets and then we are monitoring how it goes and then we will roll out to a bigger 42:23 42 minutes, 23 seconds uh so what are those perform KPIs that we are monitoring here before we decide to 42:31 42 minutes, 31 seconds expand into the channel. Uh so what are those key things that you know we are monitoring here? Uh basically 42:40 42 minutes, 40 seconds so so the key number what you're monitoring here is the the value per outlet. Uh number two is the the number of products or the SKUs which goes in 42:48 42 minutes, 48 seconds each and every outlet. So these are the two main numbers we are focusing and unless we have our uh you know uh the 42:56 42 minutes, 56 seconds basic targets we achieved there and then we would uh like to expand. 43:03 43 minutes, 3 seconds All right thank you can sir uh earlier in the call you mentioned that for the flowax 43:11 43 minutes, 11 seconds uh we have won six cr contract with an OEM did I hear that right? 43:18 43 minutes, 18 seconds So we have done overall six crore business in uh Flowmax in OEM. 43:25 43 minutes, 25 seconds I see. So sir what is the strategy there? Uh I mean we are doing our own brand as well as OEM on on the flowax 43:33 43 minutes, 33 seconds side. So, so Flowmax was formed in a way to help us uh grow in our creative uh 43:40 43 minutes, 40 seconds scholastic range and at the same time uh earlier also they were doing uh you know few OEM business so they are continuing uh with that. 43:51 43 minutes, 51 seconds Okay. 43:52 43 minutes, 52 seconds Thank you. And sir uh my second question is on the working capital side. Now you know in the past you've mentioned that 44:01 44 minutes, 1 second especially our inventory days will be higher because we are uh you launching a lot of new products and we want to keep 44:08 44 minutes, 8 seconds inventory uh at least in the stage when we are right now growing on the creative segment. But if we look at our 44:16 44 minutes, 16 seconds receivable days and payables also sir over the last 3 years um you know our receivable days have also increased 44:24 44 minutes, 24 seconds uh every year the last 3 years and our payables have come down over the last 3 years. So and if we you know compare it 44:33 44 minutes, 33 seconds compare it with our peers listed peers in a similar space you know especially on the receivable days we are way above 44:41 44 minutes, 41 seconds uh them. So you know any color on you know is there a difference in our business model or a channel strategy on 44:49 44 minutes, 49 seconds why these numbers you know uh have increased over the last 3 years. I'm not talking about inventory because that's I 44:56 44 minutes, 56 seconds understand but more on the receivable uh why the days have increased and why the payables has come down and you know 45:05 45 minutes, 5 seconds also how our current strategy is is our current strategy responsible for this or you know anything that has changed in the business environment if it help us. 45:16 45 minutes, 16 seconds Hi mantri. Uh so what you see as working capital cycle out here it's a conscious decision. It's not something that it is 45:23 45 minutes, 23 seconds uh not our control. Traditionally we have been giving higher credit and we have always seen uh if you would see the past balance sheets also you'll see a 45:31 45 minutes, 31 seconds higher number of uh uh days uh for against letters revenue from operations and this is because of the mass and 45:39 45 minutes, 39 seconds premium product range which we deal in uh and like I I reiterate that we have been uh kind of looking into our numbers 45:48 45 minutes, 48 seconds and as we launch new segments and new products where we see the opportunity to kind of uh reduce the uh receivables uh 45:57 45 minutes, 57 seconds we will go for it but but by the end of this uh year we look at at least a 10 days improvement in the entire working 46:05 46 minutes, 5 seconds capital cycle uh as far as inventory is concerned you are right because as we launch new products uh and there's a 46:13 46 minutes, 13 seconds range of products lot of products which we are launching in different uh segments including creative and steel bottles pens we are aware of because we 46:21 46 minutes, 21 seconds have been in this industry for more than five decades and we There are so much uh kind of you know we know of how the new say for example the new product is being 46:28 46 minutes, 28 seconds launched and how it will be accepted or not accepted in creative and uh steel bottle they're fairly new in terms of 46:36 46 minutes, 36 seconds the new product launches where we also have newer relationship with our distribution channel and our sales partners and hence we have to maintain a little higher inventory over here. 46:46 46 minutes, 46 seconds However, this is a continuous process but not to say that we are not going to come down on the inventory levels as well as the receivers levels. 46:57 46 minutes, 57 seconds So as we scale up let's say you know next year when when creatives becomes a little more 47:06 47 minutes, 6 seconds mature as a part of our portfolio uh and we get get more insights into the market and how we doing. Do you see some 47:15 47 minutes, 15 seconds of these uh things coming down and gradually improving over the next two years? 47:20 47 minutes, 20 seconds We we we see that thing out here. But man, there's one point which we need to see is that uh we need to notice that we have maintained our uh margins and 47:29 47 minutes, 29 seconds profit profitability in spite of these higher things. Now this is a strategy which we adopt which might be different from what the competition adopts. So if 47:37 47 minutes, 37 seconds you were to compare the bottom lines or abitars of our competitors and the kind of number of days of working capital cycle it'll be quite varied out here. 47:47 47 minutes, 47 seconds Yeah. 47:47 47 minutes, 47 seconds So but yes it also sorry it also impacts our return on capital 47:55 47 minutes, 55 seconds employ you may rejoin the queue for the follow-up questions. Sure. Thank you. 48:04 48 minutes, 4 seconds The next question comes from the line of Nirm from Unique Asset Management. Please go ahead. Go ahead. 48:12 48 minutes, 12 seconds Please go ahead with your question. 48:19 48 minutes, 19 seconds As there is no there is no response, we'll move ahead. 48:24 48 minutes, 24 seconds We have security. Please proceed with your with your questions. 48:32 48 minutes, 32 seconds Hi. Thank you for the followup. Couple of questions. Uh one I wanted to know in terms of guidance for say FI27 is it 48:40 48 minutes, 40 seconds fair to assume that uh in pens we'll we'll maintain our guidance of high single digit or is there any change 48:47 48 minutes, 47 seconds there and in terms of creatives and still bottles we still expect like a 40 50% of bioise growth uh in FY27 48:56 48 minutes, 56 seconds and in terms of EITA margins fair to assume from the current 18% levels to improve slightly there given that Now 49:05 49 minutes, 5 seconds we'll be further increasing our in-house manufacturing capacity in the creatives and given that the you know um raw 49:12 49 minutes, 12 seconds materials are also not um I would say it's benign. So do we expect the EITA margins also to improve from the current 49:20 49 minutes, 20 seconds level? So yeah that's my first question on the guidance side. How do we see FI27? So, so Arda the AITA margin will 49:29 49 minutes, 29 seconds gradually go up as economics of scales kick in and once new units are fully operationalized. Plus, this is going to 49:37 49 minutes, 37 seconds be a continuous process and we would like to maintain the we would be maintaining the m momentum as we see 49:44 49 minutes, 44 seconds today and on the working capital side fair to assume that the inflated working 49:51 49 minutes, 51 seconds capitals will still continue. There won't be like we earlier guided that we'll try to reduce our working capital cycle by say 7 8 days for your uh we 50:01 50 minutes, 1 second don't stand by that right we do stand by this absolutely ra you're right out here we 50:09 50 minutes, 9 seconds are aware of and it's a conscious decision to and it's a strategy again it's a strategy specific to us that we have adopted of higher credit period and 50:17 50 minutes, 17 seconds things inventory on the other side is because of the large number of products which we have been launching in an entire universe of our product range. So 50:26 50 minutes, 26 seconds we see the inventory levels and the receivables coming down and uh the multiple manufacturing facilities also 50:33 50 minutes, 33 seconds add to the inventory just to add to that. But yes 10 days is what we stick to it and we shall uh achieve that by the end of the year. 50:43 50 minutes, 43 seconds Understood. And lastly on the capeex so this year we'll be doing around 80 90 crores of KEX. They're already through with around 60 65 crores for next year. 50:52 50 minutes, 52 seconds What is the plan? Uh the Walsad facility is expected to come online by say fourth quarter. Suppose that are we still 51:00 51 minutes planning to uh you know keep doing this kind of capeex or it'll be more like a maintenance capeex going ahead for some time. Right. 51:08 51 minutes, 8 seconds So u with the commissioning of the wals unit, you know, our IPO proceeds 51:15 51 minutes, 15 seconds commitment would be over by then and then we'll look towards only the maintenance capex and the uh investment in the molds for launching new products. 51:24 51 minutes, 24 seconds So there won't be any major uh you know manufacturing facility being added uh until this are fully utilized. 51:36 51 minutes, 36 seconds Understood. Uh this was really helpful. Thank you. 51:41 51 minutes, 41 seconds Thank you. The next question comes from the line of Raia Mata from Green Edge Wealth. Please go ahead. 51:49 51 minutes, 49 seconds Uh thank you for the followup. So just uh you know um on the pens part right so value growth has been 9% while volume 51:57 51 minutes, 57 seconds growth has been 11%. And you know uh when I look at this in conjunction with that you know the realizations have been 52:03 52 minutes, 3 seconds stable at around 5 rupees. uh perhaps the premiumization uh in our pence portfolio is uh you know 52:12 52 minutes, 12 seconds not happening. Would that be the right conclusion? 52:17 52 minutes, 17 seconds Uh so more or less if you look at the numbers uh see when we talk about premiumization of course we have a a big 52:24 52 minutes, 24 seconds share of premium product range and mid premium product range but yes uh you know we are the volumes in mass category 52:33 52 minutes, 33 seconds is increasing uh at a rapid uh speed uh which uh you know when we look at the overall numbers it looks at you know the overall realization is same. 52:46 52 minutes, 46 seconds So uh and you know and this has happened since the last two years right that the mass segment has uh again made a comeback. 52:54 52 minutes, 54 seconds Yeah. 52:56 52 minutes, 56 seconds Right. Right. Right. And uh just lastly on the uh uh you know what's the timeline to pair down the promoter state to 75%. 53:08 53 minutes, 8 seconds you have time till well we we have by the guidelines we have time uh uh till uh November end of 53:17 53 minutes, 17 seconds this uh financial year of this calendar year got it all right thank you so much and all the best 53:25 53 minutes, 25 seconds thank you thank you the next question comes from the line of Nlesh from Prospero wealth private limited please go ahead hello I'm Am I audible sir? 53:37 53 minutes, 37 seconds Yes sir. Yes sir you are audible to us. 53:39 53 minutes, 39 seconds Good morning Mo sir. Uh sir my question is related to roe return on equity. the company is generating around 11 to 12% 53:49 53 minutes, 49 seconds of ROE and um so uh what is the expected ROE company is likely to generate in coming years because now the flare is 53:58 53 minutes, 58 seconds not only a pen producing company but a multi company and particularly the creative segment and steel bottom segment is the higher growth area higher 54:07 54 minutes, 7 seconds growth segment and generating the higher GP margin so what what the investor can expect the roe company will generate in 54:15 54 minutes, 15 seconds a coming future Right. 54:19 54 minutes, 19 seconds So, uh we maintain our uh pat margins and improve uh uh gradually and in the 54:28 54 minutes, 28 seconds coming period where we see the roe slated to kind of increase uh as we as we as we move forward as our products 54:35 54 minutes, 35 seconds also stabilize and our segments are fully explored you will see absolutely see a higher ROI it will improve. So 54:43 54 minutes, 43 seconds currently it is around 12% or 11 to 12% and one of the uh we can say the 54:52 54 minutes, 52 seconds competitor in the listed frame is generating the 20 to 22% of RO and now we have added the high growth high 55:00 55 minutes margin business creative segment and we may reach to 300 K rupees of topline in the current year current financial year. 55:08 55 minutes, 8 seconds So can we expect the around the 15% of ROE to be generated in the next financial year? 55:15 55 minutes, 15 seconds Uh Mr. Nes I would not say give a number out here but surely as you see what we have you see over here the new segments 55:22 55 minutes, 22 seconds the of creative and steel bottles in the last three quarters of the performance and you said it right and I would appreciate that you noted that that 55:31 55 minutes, 31 seconds these are actually contribute in a large way uh in in our bottom line and roe in fact. So once the economics of scale 55:39 55 minutes, 39 seconds kicks in we would see the roe numbers going up uh all the uh the bottom time 55:46 55 minutes, 46 seconds going up. So in in in other way can we expect that once the capacity will be utilized once the expansion is over uh 55:54 55 minutes, 54 seconds which will generate the higher revenue as well as the higher profit and thereby our roe can be improved. 56:01 56 minutes, 1 second Yes. Absolutely. Absolutely. Okay. Okay. Thank you. Thank you sir. All the best. Thank you. 56:09 56 minutes, 9 seconds Thank you. 56:11 56 minutes, 11 seconds Thank you ladies and gentlemen. That was the last question for today. I would now like to hand the conference over to management for closing remarks. 56:23 56 minutes, 23 seconds We would like to thank you all for taking time taking out time for this call. For any further queries and 56:30 56 minutes, 30 seconds questions you can reach out to our us in time our IR advisor. Thank you 56:42 56 minutes, 42 seconds on behalf of MUFG in time private limited that concludes this conference. 56:46 56 minutes, 46 seconds Thank you for joining us and now you may disconnect your lines.