Ganesha Ecosphere Limited — Q3 FY26

Ganesha Ecosphere Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=88mF1J3Y_X0 Published: 3 months ago

0:00 Ladies and gentlemen, good day and welcome to Ganesha Ecosphere Limited Q3 and 9 months FY26 post results 0:09 9 seconds conference call hosted by Antexto Broking Limited. As a reminder, all participant lines will be in the 0:16 16 seconds listenon mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this 0:24 24 seconds conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that 0:31 31 seconds this conference is being recorded. I now hand the conference over to Mr. Manish Mahavar from Anticto Broking Limited. 0:39 39 seconds Thank you and over to you Mr. Manish. 0:43 43 seconds Yes, thank you moderator. Good morning everyone. I'm pleased to host today's earning call of Ganesha Eosphere. Today we have a leadership team represented by 0:51 51 seconds Mr. Gopal Agraal CFO Mr. Pashant Kandelwal Senior Vice President Mr. Dash Sharma director Ganesha Ecoet without any delay I would like to invite Mr. 1:01 1 minute, 1 second Sharma to start with opening comment post which we will open the floor for Q&A. Thank you over to you Yash. 1:08 1 minute, 8 seconds Uh thanks thanks a lot Manish. Uh good afternoon everyone for being here. I welcome you all to our post results 1:15 1 minute, 15 seconds earnings con call to discuss the Q3 uh year 2026 performance. Uh this quarter has been marked by resilience in 1:22 1 minute, 22 seconds progress across our legacy operations despite sectoral headwinds such as the higher US tariffs on Indian textiles. Um I am pleased to share that our 1:30 1 minute, 30 seconds standalone business has delivered a good set of numbers with production volumes growing 13% quarteron quarter and sales volumes up by 7%. Revenue from the 1:39 1 minute, 39 seconds operations increasing sequentially and grow grew by 5.24% as compared to the last quarter while the AITA has stood at 1:46 1 minute, 46 seconds 18.54 crores and pad at 15.94 crores surpassing the combined earnings of the previous two quarters. On standalone basis, the capacity utilization has 1:55 1 minute, 55 seconds exceeded 10% with production volume of 29,88 metric tons as against 25,689 tons in the previous quarter. The sales 2:03 2 minutes, 3 seconds volume at 31,17 tons made during the quarter was the highest in the last 5 years. The company earned a revenue of 2:11 2 minutes, 11 seconds 272.95 crores compared to 259.35 kores in the last quarter reflecting a growth 2:17 2 minutes, 17 seconds of 5.24%. AITA peron came in at 5962 uh as against 2812 during the last quarter. 2:24 2 minutes, 24 seconds The AITA margins were at 6.79% of the operational revenue as against 3.15 of the last quarter. The raw material 2:31 2 minutes, 31 seconds prices have been pretty stable during the quarter in contrast to the high volatility we have experienced previously which further supported the 2:39 2 minutes, 39 seconds margins. We have continued to diversify our portfolio reduc reducing dependency on the traditional spinning sector with 2:45 2 minutes, 45 seconds over 35% of the sales uh volume being generated from the non and the home furnishing segments on a consolidated 2:53 2 minutes, 53 seconds basis. The performance was impacted by the ongoing uncertainty certainty surrounding the draft notification issued by the which delayed the 3:01 3 minutes, 1 second integration of recycled pet into supply chains uh of beverages and weakened the demand for arbit granules. Overall the factory business saw capacity 3:09 3 minutes, 9 seconds utilization dropped to 50% and revenues declined by 23%. 3:13 3 minutes, 13 seconds Consolidated production has stood at 38 768 metatons with revenue of 357.22 Kores marginally lower than the last 3:21 3 minutes, 21 seconds quarter. Of this 272.95 kores came from the standalone and 84.27 from the subsidiaries. Quarterly aida rose by 3:29 3 minutes, 29 seconds 37.67% 67% to 30.73 kores with standalone and subsidiary contributions of 18.54 and 12.19 subse respectively. 3:38 3 minutes, 38 seconds Cons consolidated AITA margins have improved to 8.6% and the AITA per turn has climbed to 7638 from 57003 in Q2. 3:47 3 minutes, 47 seconds Consolidated PAT was uh 4.74 crores. 3:50 3 minutes, 50 seconds EITA of the subsidiary business has stood at 14.5%. 3:53 3 minutes, 53 seconds Although the much awaited clarity on the draft notification would have benefited both the user industry and the recycling sector, its extraordinary delay has 4:01 4 minutes, 1 second defeated the purpose. Even if the final notification is issued now providing some relief in the 30% target of mandatory use of physical content, the 4:09 4 minutes, 9 seconds packaging industry will not be able to meet such low targets within the remaining span of the current financial year. 4:16 4 minutes, 16 seconds FI26 is a transitional year for implementing the PWM rules on mandatory recycle content and the adoption was somehow challenging for the user 4:24 4 minutes, 24 seconds industry and the regulator. We believe that the initial hindrances are being addressed and that adequate approved recycling capacities are now in place 4:31 4 minutes, 31 seconds which will make adoption much smoother from the next year onwards since the regulation mandating recycle content remains unchanged. The user industry 4:39 4 minutes, 39 seconds cannot continue to be non-compliant anymore. Overall we are confident of achieving the desired performance from this of for this business uh from FI27 onwards albeit with a delay of one year. 4:50 4 minutes, 50 seconds Our legacy business has regained sustainable momentum and recently announced reduction of US tariff on indexiles should provide an additional 4:56 4 minutes, 56 seconds boost in the coming quarters. Uh the B2B RPA business is also expected to perform comparatively better in Q4. In a recent development, our recycled filament yarn 5:05 5 minutes, 5 seconds has successfully qualified with the leading global textile brand improving the margins and volumes for filament yarn business. We are pleased to share that we have now become a regular 5:13 5 minutes, 13 seconds supplier of our uh stadium size flags to the international cricket council directly uh and where we are providing the stadiumiz flags of various countries 5:21 5 minutes, 21 seconds as unity as well as unity flags made with our recycled materials for the world cup tournaments. This collaboration highlights the g global recognition of our sustainable products 5:30 5 minutes, 30 seconds and progress. Overall, Q3 FI26 reflects both the strength of our core operations and the long-term potential of our sustainabilitydriven initiatives. We 5:38 5 minutes, 38 seconds remain confident in our ability to navigate the near-term challenges while building a stronger sustainable business for the future. Thank you everyone. 5:57 5 minutes, 57 seconds Should I begin with the question and answer section? Yes. 6:03 6 minutes, 3 seconds All right. Thank you very much. We will now begin with the an question and answer session. Anyone who wishes to ask 6:10 6 minutes, 10 seconds a question may press star and one on the touchstone telephone. If you wish to remove yourself from the question Q, you 6:17 6 minutes, 17 seconds may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will 6:24 6 minutes, 24 seconds wait for a moment while the question Q assembles. The first question is from the line of Achal Ma from Bastian Research. Please go ahead. 6:36 6 minutes, 36 seconds Hello sir, thank you for the opportunity. 6:39 6 minutes, 39 seconds I want to ask that in fourth grade earlier there were five to six manufacturers from FSA. However, as of 6:47 6 minutes, 47 seconds September 2025, many nuclear are entered taking the total to 13. So has this increased competition for a semicondu? 6:59 6 minutes, 59 seconds Do you feel there is enough manufacturing capacity in the industry now to F27 demand? 7:09 7 minutes, 9 seconds Yeah, thanks thanks for your question. 7:11 7 minutes, 11 seconds Uh so yes definitely the number of FSSI approved players has gone up uh uh quite significantly and uh there have been much much newer capacities. Yes, 7:19 7 minutes, 19 seconds certainly because of that uh there there is obviously increased competition in the industry. So the increased competition is because of the reason that the uptake of the industry has not 7:28 7 minutes, 28 seconds really taken off uh as per the volume increase which has happened and the capacity and supply available. Um uh 7:35 7 minutes, 35 seconds looking going forward now there is enough capacity available to meet the targets uh for the for the next year and I think that definitely the industry is 7:43 7 minutes, 43 seconds going to mature much more uh uh in a in a better way now. 7:49 7 minutes, 49 seconds So my second question is what is the export revenue for the quarter and for the 9 months? 7:54 7 minutes, 54 seconds Sorry to interrupt you sir. So your audio is not clear. Can you speak through the handset? Hello. Am I audible? 8:03 8 minutes, 3 seconds Uh sir can you speak by the handset? The audio is still not clear. Hello. Am I audible now? Hello. 8:11 8 minutes, 11 seconds It's yes it's better. So my next question is what is the export revenue for the quarter and for the 9 months? 8:20 8 minutes, 20 seconds So so on console level we made the export about 30 cr and on cons and for 9 months we made the export more than 100 cr. 8:28 8 minutes, 28 seconds Okay. So why we haven't not be able to sell to Europe and US where we have approval of uh there and there is no tra 8:37 8 minutes, 37 seconds tariff on our products considering on the ongoing data they should have been able to offset the decline in domestic demand skills demand. 8:48 8 minutes, 48 seconds Uh so actually the tariff is also applicable our products as well. So uh when the US tariff was implemented earlier in uh May at that time PET uh 8:58 8 minutes, 58 seconds polymer or you know PT granules were in the exemption list but uh on 2nd September when the new um modification 9:06 9 minutes, 6 seconds of the tariffs and the exemption list came out the PD was excluded out of the exemption list. So since 2nd September 9:13 9 minutes, 13 seconds we have been in the uh we are also the tariffs are also applicable on our product. So because of that we have not been able to work out any uh supplies to 9:22 9 minutes, 22 seconds the US market uh because of the tariff uh conditions uh of 50% uh capable tariffs. 9:30 9 minutes, 30 seconds Okay. And uh what is the broad range on volume and margins on the our filament order? 9:37 9 minutes, 37 seconds Uh so uh so it it is it is it is very low very low at present but uh we have we have been uh qualified with a global 9:45 9 minutes, 45 seconds textile brand and from the next quarter onward the volume increased significantly. 9:51 9 minutes, 51 seconds Okay. And uh do you expect realization to uptick towards one lakh per turn level for the legacy business now that 9:58 9 minutes, 58 seconds there are reduced tariffs on our end customer industry? 10:03 10 minutes, 3 seconds Yes sir sir. Certainly the volumes are very good in this quarter also. Uh we we have sold the 31,000 volume uh from our 10:10 10 minutes, 10 seconds legacy business uh in this quarter and definitely it will be well above the one lon for the for the entire year. 10:19 10 minutes, 19 seconds Okay. Thanks so much. 10:24 10 minutes, 24 seconds Thank you. The next question is from the line of Dhiraj Ram from BNK security. Please go ahead. 10:32 10 minutes, 32 seconds Hi sir, thank you for taking up my question. Uh two three questions. So first one is on uh standalone business uh margins have been improved 10:40 10 minutes, 40 seconds sequentially. So is it is it due to raw materal prices? If if it is yes then could you let me know uh the average raw metal price of consumption during the quarter and how do you see that in 4Q? 10:51 10 minutes, 51 seconds Yeah um these uh the the raw metal pies are quite stable during the quarter the uncertainty which prevailed over last 11:00 11 minutes two quarters was not there. So so it help us in uh uh in margins improvement uh uh in in this legacy business. 11:09 11 minutes, 9 seconds Okay. any price that you want to quote sir? Uh right now how is the price trend? 11:14 11 minutes, 14 seconds Uh so for uh right now the the prices are in the range of the bottle price are in the range of 46 47 rupees a kg. 11:21 11 minutes, 21 seconds Okay, got it. And um the the subsidiary business I I feel it was really being impacted just because of uh the 11:30 11 minutes, 30 seconds utilization. But how do you how how can we go about for 4Q and for FY21? How do you see the inflation levels for ARP especially in subsidiary? 11:40 11 minutes, 40 seconds Yes. So far uh for we are uh quite hopeful that the the the volumes will be better uh in Q4 than the Q3. We are 11:49 11 minutes, 49 seconds expecting the overall uh capacity in between uh 70 to 80% uh in Q4. 11:57 11 minutes, 57 seconds Understood. And uh uh can we take the same for FI27 sir or uh do we take between 60 to 70%. 12:07 12 minutes, 7 seconds No. So so uh FY27 must be must be a good one and and on the expected lines which 12:14 12 minutes, 14 seconds we have thought of the for FY26 but because of the uh the uh the uh chaos on the regulation side uh it could not 12:23 12 minutes, 23 seconds happen in this year. So so definitely it could happen in FY27 when the regulation would be for 40%. And uh there is much 12:32 12 minutes, 32 seconds clarity now uh over the uh of tech uh uh oft uh uh this is the uh uh this is the 12:41 12 minutes, 41 seconds uh regulation uh is is live and intact. 12:47 12 minutes, 47 seconds Okay. Great. Got it. And last question sir uh we we had some outstanding to be received from the government authorities. uh any progress on that uh or is it still to be received? 12:58 12 minutes, 58 seconds Yeah. So, so we we we got the uh 70 cr uh from the government out out of outing incentives about 110 cr from the uh from 13:08 13 minutes, 8 seconds the our for from the Zelangana governmental plant. 13:14 13 minutes, 14 seconds The amount we have received we received in January only. Got it. Great. Great. Last question sir. 13:21 13 minutes, 21 seconds uh how do you see this PWM coming into effect in FY27? 13:27 13 minutes, 27 seconds I understand that uh capacities are uh up up and running now and uh demand is meeting the capacity and that's how 13:35 13 minutes, 35 seconds you're guiding for FI27 PWM but uh how do you is there any chance to roll this forward to FI28? 13:46 13 minutes, 46 seconds So basically for as far as the uh PWMR uh is concerned uh plastic waste management uh we have to understand the uh chronology of uh this notification. 13:58 13 minutes, 58 seconds The notification came into force in 2022 mentioning that uh every brand owner or packaging plastic packaging manufacturer 14:07 14 minutes, 7 seconds has to use certain percentage of recycled content from uh 25 26. So it 14:14 14 minutes, 14 seconds was a 30% and then it has to increase by 10% every year till 29 up to 60%. If any 14:22 14 minutes, 22 seconds shortfall is there in using this recycle content there is a penalty provision for first year it is 2900 per ton. The 14:30 14 minutes, 30 seconds second year it is 5800 per ton and the third year it is 8700 per ton. 14:36 14 minutes, 36 seconds So uh because in in in very uh initial stage there was not not much uh capacity 14:44 14 minutes, 44 seconds available. There were stakeholders representation for this with the government and the government has uh 14:52 14 minutes, 52 seconds assured everyone that they will look into it and will provide some relief if uh any capacity 15:00 15 minutes uh is uh not available to complete 30% target for first year only. 15:06 15 minutes, 6 seconds uh in that case government may give some relief and everybody was waiting for that relief the whole year. uh it is a 15:14 15 minutes, 14 seconds relaxation because you see even we are discussing as on date the 30% recycle content consumption notification is 15:23 15 minutes, 23 seconds there everybody has to use 30% recycled content if any notifications for the 15:31 15 minutes, 31 seconds relaxations comes coming forward in next two months because it is now irrelevant because whole year has passed into uh in 15:39 15 minutes, 39 seconds less than two months you cannot do much with your consumption or uh non-conumption but even if any uh uh 15:48 15 minutes, 48 seconds relaxation comes in the remaining period there will certainly be a big numbers of brands who are going to pay 15:57 15 minutes, 57 seconds penalty for the first year itself so everybody uh will be in uh that uh category of first year penalty of 2900 16:07 16 minutes, 7 seconds from April onwards they have to pay 5800 if any shortfall comes in the next year So uh it is intact the notification is 16:16 16 minutes, 16 seconds intact and the implementation as per our discussion with the government officers and the stakeholder from government 16:23 16 minutes, 23 seconds side. Uh this uh notification is intact and a lot of investment has came into in this uh particular recycling field not 16:32 16 minutes, 32 seconds only in PT but also in polyolifins and uh other plastics. So uh there is not uh 16:40 16 minutes, 40 seconds much delays or uh any major modification is going to be happen in coming days. 16:48 16 minutes, 48 seconds Got it. Agreed sir. Agreed. Just last question then I'll come back in the queue. uh this uh new client that you're talking about in filament yarn uh when 16:57 16 minutes, 57 seconds do you see the offtake going for this client and how do you see margins and relations for this and what is expected 17:04 17 minutes, 4 seconds to be the offtake for this so uh the optic uh will be started uh 17:12 17 minutes, 12 seconds from uh uh February itself and uh uh we we are expecting that almost 20 to 30% utilizations of our capacity of the 17:20 17 minutes, 20 seconds filament yarn are going to be increased uh you know working uh for for for our for our partnership that we have done 17:26 17 minutes, 26 seconds started with them and uh the margins are uh quite good as expected on our lines for the filament project. Uh sorry but 17:34 17 minutes, 34 seconds we cannot disclose exactly the numbers for the particular product uh due to competitive reasons but it'll be good. Yeah. 17:41 17 minutes, 41 seconds Sure. Great. Thank you. 17:47 17 minutes, 47 seconds Thank you. The next question is from the line of Mahul Panjani from 40 cents. Please go ahead. 17:55 17 minutes, 55 seconds Hello sir. Thank you so much for the uh opportunity sir. Uh now that we are legacy business has done well in terms 18:01 18 minutes, 1 second of volumes. Um can we when can we uh comment on you know how soon it will take to be out of the woods in the non-leac business? 18:14 18 minutes, 14 seconds Uh so now we are expecting uh the the the opt uh uh will start uh uh in the current in 18:22 18 minutes, 22 seconds the current quarter itself we are expecting the good demand and uh we are expecting the good demand from uh from April onwards. So FY27 would be the uh 18:32 18 minutes, 32 seconds the year which we are expecting from the FY 26 but definitely FY 27 would be the good year. Answer the government 18:40 18 minutes, 40 seconds regulation which we are expecting is it out or it is yet expect yet not out? 18:46 18 minutes, 46 seconds So regulation is already there. So one notification draft notification was there to giving the some relief to the user industry. Uh but uh that uh draft 18:55 18 minutes, 55 seconds notification has not been finalized yet and uh uh and and uh as now the the current is going is coming to end. So we don't think it will come now. 19:08 19 minutes, 8 seconds It won't come. So how this is this is the is the bas this is the uh bas is the capacity available in the of the aret uh in the Indian market. 19:17 19 minutes, 17 seconds Uh the government may may the government may also not provide the relief at the relief uh south by the uh user industry at the beginning of the financial year. 19:28 19 minutes, 28 seconds So government may not if government doesn't is not expected to provide any relief then then our business will be significantly impacted right. 19:38 19 minutes, 38 seconds No no no noification notification has to come for the relaxation to the brand owner not to the 19:46 19 minutes, 46 seconds recycler for recycler for brand owner it is 30% mandate and uh it is intact for the year 19:55 19 minutes, 55 seconds if any relaxation comes that uh okay instead of 30% we will allow you 10% uh 20:02 20 minutes, 2 seconds of uh this uh EPR content responsibility target to be transferred to the next here. So brand owner has to get a 20:10 20 minutes, 10 seconds relief. If relief doesn't come then they have to use 30%. 20:14 20 minutes, 14 seconds Okay. So that is a benefit to us in that means. Yes. Yes. Yes. Yes. Yes. 20:20 20 minutes, 20 seconds But but only things that the it will it will start flowing into our numbers from next from Q1 of FA 27. 20:29 20 minutes, 29 seconds Yes. Yes. Okay sir. Thank you so much. 20:37 20 minutes, 37 seconds Thank you. Participants may press star and one to ask a question. The next question is from the line of Bharat 20:44 20 minutes, 44 seconds Gulati from Talal and Braha. Please go ahead. 20:50 20 minutes, 50 seconds Yeah. Hi sir, thank you for the question. Uh I just had a question regarding a standalone business. Uh in 20:57 20 minutes, 57 seconds terms of IITa per ton that has seen a significant degrowth year on year. So and that's been on a downward trend uh year on year but has picked up by QoQ. 21:08 21 minutes, 8 seconds So are we seeing this going forward to improve further on and uh you know what will be the kind will we be able to 21:16 21 minutes, 16 seconds reach back to our FI25 levels or are we going to create a base which is lower than that and then sustain that if you 21:23 21 minutes, 23 seconds can help me understand what kind of aapa or tonsils we have going forward. Thank you. 21:27 21 minutes, 27 seconds Yeah. So baj actually this business uh was uh under distress uh since last two three quarters three four quarters because of the reasons uh already 21:36 21 minutes, 36 seconds explained uh in various phone calls. So now this business has come to back on the track and so the margins have started to improve and we we are 21:44 21 minutes, 44 seconds expecting uh the input 27 we would be able to make the the margins which we uh earning earlier on our legacy business 21:52 21 minutes, 52 seconds it is in the range of uh around 9,000 to 10,000 ton perhaps 22:05 22 minutes, 5 seconds four levels which is of 10 rupees per uh per ton of a star. 22:09 22 minutes, 9 seconds Yes. Yes. We we are expecting because of the uh the the demand because of the uh the uh the recent uh uh the recent US uh 22:17 22 minutes, 17 seconds tariff relaxations we are expecting it would come uh back on the track. 22:25 22 minutes, 25 seconds Got it. Okay. And just so to understand our uh our business our arpet granules business in Vangal if you can help me 22:32 22 minutes, 32 seconds understand what kind of uh peak revenues can we get from that uh you know uh in terms of once utilizations will pick up next year. 22:42 22 minutes, 42 seconds Yeah. So so uh next year uh we would be operating at about uh uh 70,000 in capacity uh of our pets environmental 22:51 22 minutes, 51 seconds unit. So, so, so the the peak revenue potential is about uh 7 uh 800 to 700 to 800 850. 23:03 23 minutes, 3 seconds Okay. So, and just to understand the ITA per ton there also has gotten hit. So, do we see that also coming back to normalized levels or will that be on in 23:12 23 minutes, 12 seconds permanent pressures creating a new base because of the higher raw material cost that we are facing now? 23:20 23 minutes, 20 seconds uh you see uh the IBITA margins has been impacted because of the lower capacity utilization and also the the the as the 23:30 23 minutes, 30 seconds uh listing is not there in the market and the uh uh so many units have been got the FAI licenses and so the uh 23:38 23 minutes, 38 seconds supply side is uh more uh in in comparison to demand and so so the paper was there in the uh prices 23:46 23 minutes, 46 seconds also margin also but going for what we see uh when the demand will pick up from the sector uh in next year. So and the 23:54 23 minutes, 54 seconds and basis the cap the supply so it will be matching and so the pressures which we are facing now must be rel to some level uh in next uh year. 24:06 24 minutes, 6 seconds So so could you just help me with the number of what kind of ITA ps would we be expecting to do next year? 24:13 24 minutes, 13 seconds Uh so so for for the IBA we cannot comment as of now currently because the uh so many uh developments are there in 24:20 24 minutes, 20 seconds the market in the current year. So uh so the market is uh uh evolving and so u margins exactly uh forecasting the ITA 24:29 24 minutes, 29 seconds margins is not possible as of now. Uh uh uh we we will be able to comment in on next quarter itself. 24:37 24 minutes, 37 seconds Got it. Got it. And just one last question. So in terms of uh Q4 for our uh for our uh you know uh the business 24:44 24 minutes, 44 seconds that focuses on the FNB segment, is that seen any pickup in terms of customers trying to fulfill uh whatever uh 24:52 24 minutes, 52 seconds whatever they can and reduce their penalties or is it still in the same trajectory as it as it's been? 25:04 25 minutes, 4 seconds Uh yes. Uh sorry, can you repeat the question again? 25:08 25 minutes, 8 seconds So just trying to understand has there been some uptick in demand in from the FNB players or uh is it uh is it been 25:16 25 minutes, 16 seconds constant with how the previous two quarters have played out? 25:19 25 minutes, 19 seconds Uh no so definitely compared to the last quarter there has been an uptick uh in the demand uh and consumption from the FNB players but it is still not to the 25:27 25 minutes, 27 seconds level that we expected that it should be. So uh yes it has improved uh definitely yes but still not uh where where it I mean way lower than where it should be actually. 25:37 25 minutes, 37 seconds Yeah. So, so basically based the uh the the current situation we are expecting the capacity utilization of war plant by 25:45 25 minutes, 45 seconds about between 70 to 80% as well as the 50% which we have got uh in this two three quarter. 25:53 25 minutes, 53 seconds Got it sir. Got it. Okay. That was helpful sir. Thank you. I'll get back in. 26:00 26 minutes Thank you. The next question is from the line of Dika Ka from AV Finor. Please go ahead. 26:08 26 minutes, 8 seconds Uh hello sir, thank you for the opportunity. Um I had a couple of questions. Firstly on the lines of the 26:15 26 minutes, 15 seconds fact that uh two quarters of our FRA 26 year have been impacted by the MOSF 26:22 26 minutes, 22 seconds notification. Do you think that this is now behind us or there could be a probability of giving of the government 26:30 26 minutes, 30 seconds giving this sort of relaxation once again in FI27 considering the fact that uh you know the 30% implementation would 26:38 26 minutes, 38 seconds be difficult in Q4 and this would sort of be carried forward in the next year. 26:48 26 minutes, 48 seconds Uh so unless the relaxation notification doesn't come there is no carry forward. 26:53 26 minutes, 53 seconds So uh this year 30 point consumption was mandatory and uh uh and whatever the whatever the shortfall is there uh the 27:01 27 minutes, 1 second penalty would be led penalty uh it depends uh uh so and for next year 27:08 27 minutes, 8 seconds it is 40% and the relaxation notification of proposed pieces the capacity of recycling capacity was not 27:15 27 minutes, 15 seconds there in the beginning of the financial year 2016 but now the approved capacity is almost uh uh 250 50,000 turn to 27:23 27 minutes, 23 seconds 300,000 turn in between and so it meets the requirement of the industry uh user industry for the next year. So uh so we 27:32 27 minutes, 32 seconds don't expect there would be any relaxation notification uh come will come further for next year. 27:38 27 minutes, 38 seconds Got it. So considering this background um would be right to um change our uh 27:49 27 minutes, 49 seconds guidance for FI27 that we had given the last year both for the legacy business and for the consolidated business and 27:58 27 minutes, 58 seconds the legacy business particularly around the fact that the raw material prices have now normalized and you had expected 28:05 28 minutes, 5 seconds 10% margins for FI Q4 FI26 and a slight improve movement further towards 11% for FA27. Is that guidance intact or are we 28:14 28 minutes, 14 seconds improving it further? And also for the um our pet business uh what is the guidance that we are now giving? Is there any change? 28:24 28 minutes, 24 seconds Uh no. So uh basically the our legacy business we are expecting 9 to 10 will come back to 9 to 10% income margins next year. Mhm. 28:34 28 minutes, 34 seconds Uh and uh for the our pet business uh yes uh we are expecting uh the with the 28:40 28 minutes, 40 seconds 40% uh uh mandatory use is intact uh we we would be uh doing a much better 28:49 28 minutes, 49 seconds okay and we had expected 65% of our revenue coming from our pet ships by FI28 u that is also still intact right? 28:59 28 minutes, 59 seconds Yes, once the once the official starts, definitely we will we will go uh we will move move on our uh uh capacity extensions. 29:08 29 minutes, 8 seconds Got it. Perfect. That's it for me. Thank you so much. 29:14 29 minutes, 14 seconds Thank you. The next question is from the line of Bhavik Sha from Invexa Capitals. Please go ahead. 29:21 29 minutes, 21 seconds I'm audible. Yes sir, you're audible. 29:24 29 minutes, 24 seconds Yeah. So my first question is uh our realizations have actually not improved despite you mentioning the notification 29:31 29 minutes, 31 seconds is still in place. So what is actually leading that the companies are not buying in uh the volumes they require to 29:39 29 minutes, 39 seconds fulfill for the year one. Uh second is then have you seen any traction in the last quarter currently like in terms of say improvement in realizations? 29:52 29 minutes, 52 seconds uh so you see uh why the uh basically if you look at same you know as prashant had put in detail the chronology of order what happened is that the 30:00 30 minutes regulation for 30% uptake is live but in June the government came out with a draft giving some relaxation that okay you know you can carry because there is 30:08 30 minutes, 8 seconds capacity shortfall uh you know to to meet the target you can carry forward uh to the next three years uh since then there has been a lot of to and fro 30:16 30 minutes, 16 seconds happening between the industry bodies and the government and um they are finally working And with the final notification, everyone is awaiting and 30:25 30 minutes, 25 seconds postponing their purchases for the final notification to come out which is you know with with the relaxation basically and because of that everyone has been 30:34 30 minutes, 34 seconds holding off to you know do their purchases since December. Um so if you look at the current situation uh it is 30:42 30 minutes, 42 seconds you know because the government has told that everyone that we will be coming out with it very soon. Um so everyone has definitely started again the optics yes 30:50 30 minutes, 50 seconds obviously it has not reached to the level uh that it is expected but since the since the notification is still not out a lot of brands I mean I would say 30:58 30 minutes, 58 seconds 90% of the people are still you know not uh have not really started the offtake in the right uh volume way uh manner and the realizations have also been very 31:07 31 minutes, 7 seconds consistent they have not improved because still the capacity or the supply of the uh material is way way more than 31:14 31 minutes, 14 seconds the uh demand demand so the resilience have not really improved any any any bit. 31:19 31 minutes, 19 seconds Understood. So so basically they are ready to pay the penalty of 2900 per ton but they're not willing to purchase the additional volumes right. 31:29 31 minutes, 29 seconds Uh so you see uh it's it's much more complex than that. Uh you can say uh uh when it comes to bigger brands paying 31:37 31 minutes, 37 seconds penalties for them is a very very big issue uh from their brand equity point of view. Second is that paying the penalty also does not absolve you of the 31:44 31 minutes, 44 seconds requirement. it just carries forward the you know the the uh the the volume requirement to the forward years and 31:52 31 minutes, 52 seconds like uh also there is another EC clause which is the environmental compensation act where they can levi a much more uh 32:00 32 minutes stringent penalty to on on you if you are not uh you know fulfilling the mandate so uh paying paying penalty is 32:07 32 minutes, 7 seconds it's not as simple as it seems like but the problem is that they are awaiting the final notification the relaxation notification from the government because 32:14 32 minutes, 14 seconds of which they have in you know uh postponing the usage. 32:18 32 minutes, 18 seconds Understood. And so when we say 9 to 10% margins we are guiding for. So can you just help us understand like uh do we 32:25 32 minutes, 25 seconds expect our cost to be lower? Do we expect our realizations to improve to come to this margin or what are we factoring in to come to this margin? 32:34 32 minutes, 34 seconds So 90% guidance is regarding our legacy business uh the extended business. 32:42 32 minutes, 42 seconds So, so basically uh the the the ramen prices has been the stability in the ramen prices is a key factor and uh and 32:49 32 minutes, 49 seconds with the increase in the volume and uh and uh uh our shifting uh shifting of uh 32:57 32 minutes, 57 seconds shifting of production uh uh our dependence on the spinning sector uh it will be driving the margins. 33:04 33 minutes, 4 seconds Understood. So so just let us assume that this notification is there without any changes. So how do we see our volumes in FI27? 33:14 33 minutes, 14 seconds So the this relaxation notification only meant only for the FY26. It is nothing to do with the FY27. So the regulation of 40% for the FY 27 is intact. 33:26 33 minutes, 26 seconds So like then how do we see our volumes improving sir in terms of uh so so so so for next year uh basis is 33:34 33 minutes, 34 seconds the for uh the regulation is intact for 40% we are expecting we would be able to utilize 85 to 91 capacity utilization 33:42 33 minutes, 42 seconds and currently we are uh and next year we will be having the around 70,000 capacity and so so we would be uh expecting a volume of around 55 to 33:50 33 minutes, 50 seconds 60,000 t and more than 50,000 tons right okay Thank you so much and all the best. 34:00 34 minutes Thank you. The next question is from the line of Anish from Vikaria. Please go ahead. 34:07 34 minutes, 7 seconds Hi. Uh am I audible? Yes sir, you're aware. 34:11 34 minutes, 11 seconds Yeah. Okay. Uh in terms of uh these FNB customers you have um the number of 34:20 34 minutes, 20 seconds vendors they have approved earlier has there been any change in that because there lot of capacity which is coming but have they signed up or approved more vendors? 34:33 34 minutes, 33 seconds Yes, definitely they are obviously working with more vendors also. Uh and uh I mean uh I mean the the the bigger 34:41 34 minutes, 41 seconds problem here is that is not that they are approving other vendors is real is that the volume oftake is not going up with the capacity increase that is 34:49 34 minutes, 49 seconds coming in. That has been the biggest issue you know which has caused uh this this kind of depreciate I mean this kind of outlook in the arpet industry 34:57 34 minutes, 57 seconds currently. Uh and they will have to do that. they will have to work with all the recycling tests because the capacity needed uh you know to fulfill the 35:05 35 minutes, 5 seconds mandate requirement is obviously currently still under uh you know it's almost matching they will obviously the industry will have to work with the uh 35:12 35 minutes, 12 seconds people uh you know who are also putting up capacities right uh the 35:20 35 minutes, 20 seconds go yeah I mean the bigger problem is that the number of players who are using the arpet currently has not gone up we were expecting that you know as the mandate 35:28 35 minutes, 28 seconds comes uh to final will see this thing the number of players should now start to increase. They have it's increasing but not at the rate that it should actually. 35:38 35 minutes, 38 seconds Yeah. And and and as far as the approval is concerned, yeah, we have our product is approved from uh almost all the big big brands. 35:45 35 minutes, 45 seconds Right. No, I meant to say your customers say we working with the two uh recyclers. Now they now have approved three, four or five recyclers because more capacities have come in. 35:57 35 minutes, 57 seconds They have correct. Correct. Absolutely they have. Yes. Got it. And let's say as you mentioned some of these global brands if they have to be really really 36:04 36 minutes, 4 seconds careful about breaching the norms uh will they have like even if the notification comes in February and or 36:12 36 minutes, 12 seconds March they don't have much time if they have to uh fulfill this 30% in respect to whether election comes or not uh they need to decide whether they whether to 36:21 36 minutes, 21 seconds pay penalty or offtake right or they can offtake let's say just in the month of March can they off take enough quantity 36:28 36 minutes, 28 seconds to to to meet this uh guideline uh no definitely you see it's 36:36 36 minutes, 36 seconds go on sir uh uh so I think you see uh the 30% mandate is there if any relaxation let's say let's presume whatever was uh in the 36:45 36 minutes, 45 seconds year or 10% relaxation comes uh for the current year uh even uh if 10% relaxation comes uh you are very correct 36:54 36 minutes, 54 seconds that uh most of the brand are uh going to pay penalty for the first year and the first year penalty of 2900 is only for the first default. 37:05 37 minutes, 5 seconds Once a first default has been done the next default has on case of next default you have to pay penalty of 5800 and in 37:14 37 minutes, 14 seconds case of third default there will be a penalty of 8700 over and above this uh uh there will be environment 37:20 37 minutes, 20 seconds compensation. So uh if any relaxation come for the first year because government has been represented uh by all the brand owners many of the brand 37:29 37 minutes, 29 seconds owners that uh not enough capacity is available for the first year. So they they were seeking some relaxation in the 37:36 37 minutes, 36 seconds percentage for the first year. Uh so uh for next year there is a uh mandate of 40%. uh which has to be fulfilled by the 37:46 37 minutes, 46 seconds brand owners and there will be uh looking to this 40% number there will be uh good demand and uh Ganesha as the 37:54 37 minutes, 54 seconds largest capacity holder is well placed for uh taking that demand uh in the 38:00 38 minutes business I was trying to understand let's say of 10% and they have to fulfill this 20% 38:08 38 minutes, 8 seconds somebody who does not want to be in this part of not being compliant uh will they have this one month with so 38:17 38 minutes, 17 seconds much material that they can meet this 20% not just with Ganesha but across the industry uh will that availability is so high that they can fulfill this in one 38:24 38 minutes, 24 seconds month or uh otherwise they will be like they can pay penalty and all but still be uh having that challenge of not meeting the normal. 38:32 38 minutes, 32 seconds Yeah. So, so in any case if any relaxation uh comes along together so so uh it is it is it is sure that UN will 38:39 38 minutes, 39 seconds not be able to fulfill it uh even the lower targets they will not be able to fulfill it okay the second question I had was you know export side now if the 38:48 38 minutes, 48 seconds tariffs are reduced to this 18% so your product will be covered with the 18% uh would you be looking at exporting uh 38:56 38 minutes, 56 seconds opportunity or you think that 18% is also too high to make this export viable for Uh so you see the market is currently 39:05 39 minutes, 5 seconds very uh very uh uh evolving uh you know across and uh definitely we are currently in discussions uh with with uh 39:13 39 minutes, 13 seconds with the consumers there and uh we will get to know about this uh only with with time uh of what kind of uh volume and business is possible. 39:24 39 minutes, 24 seconds Okay great thank you. 39:28 39 minutes, 28 seconds Thank you. The next question is from the line of Dinda Kumar Patro from Spark PMS. Please go ahead. 39:38 39 minutes, 38 seconds Uh hi sir, thank you for the opportunity. Um my first question uh is that uh based on uh on KEX uh can you 39:47 39 minutes, 47 seconds provide any color on our KEX plans uh brownfield and green field uh in FI 26, 27 and 28 uh in terms of investments and uh of metric terms? 39:59 39 minutes, 59 seconds Uh so uh so uh we are already implementing a brownfield project. The branch project would be operational by March and April and uh uh so it it 40:08 40 minutes, 8 seconds involves a growth effect around 130 K which has been largely incurred uh so far and for the next level of expension 40:17 40 minutes, 17 seconds green field expansion or the brownfield expension we we are uh we as for our plans uh the four 400 around 450 cr is 40:25 40 minutes, 25 seconds to be invested uh in next next two years. 40:32 40 minutes, 32 seconds Okay. So 130 crores of brownfield that was around 22,500 tons of carpet in 40:40 40 minutes, 40 seconds forle right current and uh um so if I heard it right you 40:48 40 minutes, 48 seconds said pure will be able to do 70% nucleation in the subsidiary business uh that uh 70% is including the brownfield 40:56 40 minutes, 56 seconds expansion correct correct yeah those are my questions Thank you. 41:06 41 minutes, 6 seconds Thank you. The next question is on the line of Atar side from Smart Sync Services. Please go ahead. 41:16 41 minutes, 16 seconds Hello sir, thank you for the opportunity. Uh this is my first time ever I'm uh attending your call. So 41:23 41 minutes, 23 seconds sorry if I have some basic questions but but I wanted to understand do we have any signality in our business? So can you please explain the seasonality in our business? 41:34 41 minutes, 34 seconds Uh so seasonality uh in case of a legacy business the seasonality is largely from the raw material side. So in case of 41:42 41 minutes, 42 seconds northern India the in winter season the round availability uh uh reduces uh somewhat and in the summer season the 41:49 41 minutes, 49 seconds availability is superior but for for from the our uh finish label uh there's no uh no such seasonity in our negative 41:57 41 minutes, 57 seconds business and uh for uh our uh you due to reward business yes uh there is a certainty uh though uh it is a very new 42:06 42 minutes, 6 seconds business so uh it will it will be it will be uh much uh much comprehended 42:13 42 minutes, 13 seconds in next financial year. But uh certainly the user industry is having the seasonary uh when the there is winter season and from August to September 42:22 42 minutes, 22 seconds onwards uh uh uh their their profes their profan. 42:32 42 minutes, 32 seconds So basically the main seasonality which we have in our legacy business because of raw materials right raw material prices 42:40 42 minutes, 40 seconds correct. So what are the measures we are taking to mitigate the risk mainly raw material prices? 42:51 42 minutes, 51 seconds Uh so so basically uh basically we try to we try to uh to make uh to make some inventory uh basically you see the rail 43:00 43 minutes our our ra is scrap. So is available. It is not an organized business. It is not a standard material. So uh the 43:07 43 minutes, 7 seconds collection is going on and you have to buy it. So you cannot uh you cannot uh stock it too uh in too big quantity. But 43:15 43 minutes, 15 seconds uh certainly we we try to maintain a inventory of around uh 30 35 days and in summer season we will try to uh increase 43:22 43 minutes, 22 seconds the inventory by four every four five days. Uh additional inventory is talking. 43:32 43 minutes, 32 seconds at you are talking about this draft notification. So can you please explain more on this like uh you are expecting 43:40 43 minutes, 40 seconds uh like the players expecting 10% relaxations also. So can you please throw some light on that? 43:49 43 minutes, 49 seconds Sorry. Can you can you please come again? Your wife was not Yeah. Audible. Uh hello. Now I'm audible. 43:58 43 minutes, 58 seconds You're better. It is better. 44:00 44 minutes Yeah. So just wanted to know more about the draft notification which you are talking because I joined late. 44:12 44 minutes, 12 seconds Yes. So the draft basically the regulation was implemented for 30% mandatory content of recycle uh recycled 44:19 44 minutes, 19 seconds uh uh granules uh in the packaging industry plastic packaging industry and the regulation was implemented from uh 44:26 44 minutes, 26 seconds April uh 26 25 April 25 uh but uh at the when the regulation was implemented uh the enough capacity recycling capacity 44:34 44 minutes, 34 seconds was not available and only around 70 75,000 approved capacity was there while the convention was expecting much more than that and so the uh so the user 44:43 44 minutes, 43 seconds industry uh contacted uh contacted the ministry uh MOE of CZ for some 44:49 44 minutes, 49 seconds relaxation. uh so uh in June uh the government uh the government has come out with a draft notification in which 44:56 44 minutes, 56 seconds they propose uh uh uh to u uh allow the uh uh to uh make the next some 45:04 45 minutes, 4 seconds relaxation and 30% uh uh target and allowing the uh shortfall for for over uh next 3 years. That was a draft motivation which is not finalized yet. 45:21 45 minutes, 21 seconds A third sir, may I request you to join the queue for a follow-up question. The next question is from the line of Mahul Panjawani from 40 cents. Please go ahead. 45:34 45 minutes, 34 seconds Hello. Thank you sir. Thank you for the followup. Uh so sir uh regarding the preceding question, you said that the 45:40 45 minutes, 40 seconds notification work draft notification for was for 3 years. So it has not come yet right? 45:48 45 minutes, 48 seconds Uh it is not for the three year it was only for the FY 26 but the any shortfall was to be carried forward for next year. 45:56 45 minutes, 56 seconds Suppose the 30% target is there and someone uses the 20%. So 10% is a shortfall. So 10% shortfall could be uh could be uh recubing next year. 46:06 46 minutes, 6 seconds Okay. Okay. Got it. And sir my next question is uh sir can we expect uh that Q4 results will be better than Q2 and Q3? 46:17 46 minutes, 17 seconds Yes yes yes we are expecting the better better Q4 than the Q3 and and it will be mainly added by the 46:24 46 minutes, 24 seconds legacy business or overall overall both legacy business as well as for uh new business or sub business. 46:33 46 minutes, 33 seconds Okay sir thank you so much for answering all the questions. Thank you. 46:39 46 minutes, 39 seconds Thank you. The next question is from the line of Sadharta Bman from Sagun Capital. Please go ahead. 46:48 46 minutes, 48 seconds Hello sir. Very good afternoon. Am I audible? Yeah. Yeah, you are. You are. 46:54 46 minutes, 54 seconds Uh yes sir. Uh I I was just trying to understand uh what would be the uh kind of margin uh we would be looking next 47:03 47 minutes, 3 seconds year and forward. any any kind of ballpark figure uh if you can tell us. 47:11 47 minutes, 11 seconds Uh so uh we we are not uh providing uh any guidance as of now because of the the uncertainty prevailed uh in this uh 47:20 47 minutes, 20 seconds financial year over the notification and the regulation but uh certain uh but we are expecting this uh 47:28 47 minutes, 28 seconds uh uncertainty would not be there for 27. Certainly the margins would improve uh with the uh increased optics and volumes but any margin guidance overall 47:37 47 minutes, 37 seconds uh we would be able to provide only in the next quarter. 47:41 47 minutes, 41 seconds Okay. Okay. So uh it will be same as the TTM or uh we can expect at least slight in 47:48 47 minutes, 48 seconds we we are we are expecting much better than that. Okay. Okay. Okay. Fine. Fine. Thank you. That's all. 47:57 47 minutes, 57 seconds Thank you. The next question is on the line of Ruben Matthews from Equity Intelligence. Please go ahead. 48:05 48 minutes, 5 seconds Yeah. Hi. Um I just wanted to know um with your discussions with these big large branded players uh on how much are 48:13 48 minutes, 13 seconds they right now what is their percentage u of recycled materials that they are using for the B2B? 48:21 48 minutes, 21 seconds Uh so see it's very difficult to give the exact numbers because even we don't have the exact numbers. uh but uh it's 48:28 48 minutes, 28 seconds fairly low. I would say it's uh low than lower than uh 10 to 15% uh maybe somewhere in the ballpark. Uh I'm just 48:36 48 minutes, 36 seconds talking about the global global big big big brands but uh uh very difficult to come with exact number. 48:43 48 minutes, 43 seconds Okay. So you're saying that they are right now at around 10 to 15%. And um um have with your recent discussions do you 48:51 48 minutes, 51 seconds see them ramping up to at least 20 25% with the purchases that they're making or 48:59 48 minutes, 59 seconds so CC currently they are not ramping up uh but uh definitely they would be uh both the government notification while notification will be there. 49:09 49 minutes, 9 seconds Okay. Okay. And this expansion plans you don't need to you already have funds for the expansion right there's no more additional funds required. 49:18 49 minutes, 18 seconds Yes. Yes. We are having the we are having the funds uh and our our our uh our leaders position is also very very comfortable. So we uh so we manage from that. 49:29 49 minutes, 29 seconds Okay. And um just just to help me out with the average realization of your product now um is it around 100 rupees 49:36 49 minutes, 36 seconds for the PL um you know the recycled plastic for the bottles because the different product. 49:44 49 minutes, 44 seconds Yeah. So it is different for the different products. So the for for the fiber it is it is lower than the uh it is around 85 rupees 84 85 rupees and for 49:52 49 minutes, 52 seconds the uh granules. Yeah. Yeah. Of course it is more than 95 rupees. 49:58 49 minutes, 58 seconds more than 95. Okay. Okay. And um and and just one last question now. Um I'm I'm 50:05 50 minutes, 5 seconds just starting to follow this company. So now you're looking at collection of uh raw materials, right? Uh for the plastic 50:12 50 minutes, 12 seconds bottles. Now with all these additional companies setting up their capacities, uh you know, do do you see there being a 50:20 50 minutes, 20 seconds shortfall in collection of these raw materials or would you looking would you look at importing plastics maybe? How how would you go about it? 50:30 50 minutes, 30 seconds Uh so you you see the the uh collection is very very good uh in the country uh as far as the PET bottles are concerned. 50:38 50 minutes, 38 seconds Uh and uh uh the the usual industry is from the fiber from um B2B business and 50:46 50 minutes, 46 seconds uh so certainly the the the uh the demand is uh the demand is uh much better than much much more than the uh 50:53 50 minutes, 53 seconds the supply side. So uh the the fiber industry is uh uh uh is uh trying to uh 51:01 51 minutes, 1 second use some textile waste and other waste uh uh as against the pet bottle is cap and silver industry is now moving from the pet bottle cap to some other uh 51:09 51 minutes, 9 seconds alternatives and so so it will release the pressure on the supply side for the pet bottle. 51:15 51 minutes, 15 seconds Okay. Okay. Okay. Fine. 51:21 51 minutes, 21 seconds Thank you. The next question is on the line of sashes pari from Manish Mundala and Associates. Please go ahead. 51:29 51 minutes, 29 seconds Uh hello sir, is my voice clearly audible? Yes sir. 51:36 51 minutes, 36 seconds Thank you. So my first question is regarding the competitive landscape as I have heard from a media release that Reliance Industries is also 51:44 51 minutes, 44 seconds collaborating with Switchcraft Ecoteex to enter into the recycling pack business. So they are targeting to recycle around 5 billion plus pet 51:53 51 minutes, 53 seconds bottles and in an industry where Reliance is going to enter we can expect a stiff competition there. So what is 52:01 52 minutes, 1 second your opinion and perspective on it? I want to know that and add add on to it that Reliance is also having chemical 52:09 52 minutes, 9 seconds recycling technology. Uh as per my knowledge we Gyosphere is currently using the 52:17 52 minutes, 17 seconds mechanical recycling technology. So I also want to take some uh what is your take on it? Actually I want to know. 52:32 52 minutes, 32 seconds So uh yeah hi sure. Uh so yes you're right. Uh so this this I think this news is not new. Uh I think it's a pretty old news. So basically yes uh the the 52:42 52 minutes, 42 seconds reliance are collaborating but the collaboration is regarding the RPSF the the traditional the legacy business that we have recycled polish stable fiber 52:49 52 minutes, 49 seconds business. Uh that's the uh collaboration uh uh to do uh recycling of uh of of the 52:57 52 minutes, 57 seconds uh PET bottle waste. uh uh basically Reliance also has a uh capacity of its own to do RPSF and they you know partner 53:05 53 minutes, 5 seconds with Chichakra for building uh some more capacity of the RPSF uh uh you know product which is our legacy product and 53:13 53 minutes, 13 seconds uh talking about competition I mean I think uh we it's pretty clear that uh the the RP recycling recycle PT industry 53:21 53 minutes, 21 seconds has always been very very competitive I would say very highly competitive from the last 25 years and it remains to be so and uh Gan Ganesha has still been 53:29 53 minutes, 29 seconds able to navigate and has maintained its position as the leader of the industry uh in spite of the uh industry uh condition. 53:40 53 minutes, 40 seconds Okay. And uh what about sir? Are we planning to set up any chemical recycling plant or we just planning to continue with our existing recycling? 53:57 53 minutes, 57 seconds Uh so so we are basically into the mechanical recycling and we are uh the and as far as the only the mechanical recycling is a proven one over chemical 54:06 54 minutes, 6 seconds recycling is at very neant stage and and uh and it is it costing is too too high operational cost is too high as well as 54:13 54 minutes, 13 seconds the capacity is also too high. So so so it will it will take uh a time uh to be commercially uh viable. 54:23 54 minutes, 23 seconds Okay. 54:25 54 minutes, 25 seconds And sir, are we having any plan to recycle HDPE and flexible plastic and other hard plastics in future or are you 54:33 54 minutes, 33 seconds just uh going to focus on pet recycling? 54:40 54 minutes, 40 seconds Yes. Uh yes, we we we we are also uh we are also uh uh starting uh the recycling of the uh polyolipins uh apart from the 54:50 54 minutes, 50 seconds PET. We we are exploring that and as any complete plan is not yet as of now finalized but uh definitely we are looking for it. 55:00 55 minutes Okay. And can you uh do some exports? 55:08 55 minutes, 8 seconds Yes. So, so we are already already making some export around uh 9 to 10% uh uh of our fiber volume has been exported 55:17 55 minutes, 17 seconds and uh uh because of the tariff uh tariff in US uh so uh so uh we have started the export of some uh of our 55:25 55 minutes, 25 seconds arpet uh but uh because of the tariff it was stopped now we are expecting uh it will again we'll get some momentum 55:35 55 minutes, 35 seconds sorry to interrupt you sir you may join the Thank you for the next follow-up question. The next question is from the line of Dhiraj Ram from BNK Securities. 55:44 55 minutes, 44 seconds Please go ahead. 55:46 55 minutes, 46 seconds Uh thank you for taking up my question again. Um so for this art realizations uh historically I mean in FI24 and 25 55:54 55 minutes, 54 seconds around used to be higher and now it slightly came down and in FY27 do you expect it to go back to previous levels 56:02 56 minutes, 2 seconds or is it too much to go back to previous levels? 56:06 56 minutes, 6 seconds So basically the realizations of ART depends on the prices of the bottles uh scrap bottles also. So so so it moves 56:15 56 minutes, 15 seconds moves mostly with the prices of AR bottle uh escrap bottles. 56:22 56 minutes, 22 seconds Okay. Okay. Got it. And based on landscape of uh competition what previous participant was asking could 56:30 56 minutes, 30 seconds you throw some light on this Indorama JV with warm beverages. Do if we consider that uh maybe coming in FI 27 or 28 do 56:40 56 minutes, 40 seconds we still have a shortfall of demand versus capacity of recycling? 56:47 56 minutes, 47 seconds Uh yes uh yes uh definitely definitely so see it's not about uh shortfall of demand or capacity it's about managing 56:54 56 minutes, 54 seconds the uh uh demand and supply. So what is happening now in the industry is that we are working together to establish a a 57:01 57 minutes, 1 second very coherent demand supply situation for the industry to work in a better way in a more efficient way. So uh what is happening what is not going to happen is 57:10 57 minutes, 10 seconds that the um like in the last uh couple of quarters any new capacity no new capacities have are coming up or or are 57:18 57 minutes, 18 seconds coming up to be announced in the future because the industry is waiting for the demand to firm up uh and the numbers to stabilize. So even with the current this 57:26 57 minutes, 26 seconds JV volumes which are coming in we've already considered in it in the current set of uh numbers it's it'll be still we we will be almost at par with the demand and supply equation. 57:38 57 minutes, 38 seconds Got it sir. Got it. Sure. Thank you. 57:44 57 minutes, 44 seconds Thank you ladies and gentlemen. We take that as the last question of the day. 57:49 57 minutes, 49 seconds And now I would like to hand the conference over to management for the closing comments. 57:58 57 minutes, 58 seconds Yeah, thank you. Thank you all for joining today and for your continued trust in our journey. We appreciate your continued engagement and look forward to 58:06 58 minutes, 6 seconds updating you on our progress in the next call. Until then, stay safe and stay connected. Thank you. 58:14 58 minutes, 14 seconds On behalf of Antic Stock Broking Limited, that concludes this conference. Thank you for joining us.