Garware Hi-Tech Films Limited — Q1 FY26

Garware Hi-Tech Films Ltd Q1 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=33-m1Y9VD_s Published: 9 months ago

0:00 Ladies and gentlemen, gay and welcome to the Gervari h high-tech flames limited earnings conference call. As a reminder, 0:07 7 seconds all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should 0:16 16 seconds you need assistance during the conference call, please signal an operator by pressing star zero on a dashed phone. Please note that this 0:24 24 seconds conference has been recorded. I now had the conference over the Mr. Kashwarma from earns and earns. Thank you and over to you sir. 0:33 33 seconds Thank you Musk. Good evening everyone. 0:36 36 seconds Welcome to the quarter 1 FI26 earnings call for Gware Hitex Films Limited. On behalf of the company, I would like to 0:43 43 seconds express our gratitude to each of you joining the call today to discuss the performance of the company and to answer the questions. We have with us from the 0:52 52 seconds company Mr. MS Also, director technical, Mr. Mr. Deeper Jooshi, director of sales and marketing and Mr. Abhishek Agarwal, 1:00 1 minute the chief financial officer. Before we begin, I would like to draw your attention to the fact that today's discussion may contain forward-looking 1:08 1 minute, 8 seconds statements that are subject to various risks, uncertainties, and other factors which will be beyond management's control. We kindly request that you bear 1:17 1 minute, 17 seconds in mind there may be uncertainties when interpreting such statements. Please note that this conference is being recorded. We will now start the session 1:24 1 minute, 24 seconds with opening remarks from the manment team. Afterwards, we will open the floor for an interactive Q&A session. I would now like to invite Mr. Deepak Jooshi to make his opening remarks. Over to you. 1:37 1 minute, 37 seconds Thank you, Vikas. Good evening everyone and thank you for joining us today to discuss the Q1 FY26 performance of Gwar 1:46 1 minute, 46 seconds High Films Limited. The first quarter of FY26 unfolded against the backdrop of a challenging external environment both 1:55 1 minute, 55 seconds globally and domestically. Traditionally a strong quarter for us, this year's performance was modest due to unusual 2:03 2 minutes, 3 seconds monsoon patterns and emerging global trade uncertaintities. On the domestic front, quarter 1 is usually a strong 2:11 2 minutes, 11 seconds volume driver, but the monsoon season started 30 40 days earlier than expected in the entire country. We have seen 2:18 2 minutes, 18 seconds demand disruption in end use sectors such as automotive for sun control films and beverage for shrink fields. This 2:27 2 minutes, 27 seconds seasonal shift affected our order flows in our consumer and industrial divisions, particularly for segments 2:34 2 minutes, 34 seconds that are sensitive to short-term demand cycles. In our sun control film business, revenues saw a yearon-year 2:43 2 minutes, 43 seconds decline of approximately 7% primarily due to early rains and temporary 2:50 2 minutes, 50 seconds slowdown in demand from developed markets and sluggish growth in automotive sales. Our pain protection 2:57 2 minutes, 57 seconds film segment recorded a yearon-year growth of approximately 28%. 3:04 3 minutes, 4 seconds Driven by higher adoption in global markets such as North America and the Middle East supported by improved brand 3:12 3 minutes, 12 seconds awareness and the expansion of Gervare application studios. 3:17 3 minutes, 17 seconds Revenues in our industrial product division saw a decline of around 3% on year-on-year basis. Our shrink 3:25 3 minutes, 25 seconds subsegment declined by nearly 29% influenced by the unusual monsoon patterns leading to slowdown in beverage 3:34 3 minutes, 34 seconds industry and uncertaintity of tariff situation in US market. 3:40 3 minutes, 40 seconds While the overall top line was impacted due to these evolving geopolitical and tariff related concerns, we believe the 3:48 3 minutes, 48 seconds fundamental of our business remains strong. Our strong global presence, diverse product mix and a longstanding 3:57 3 minutes, 57 seconds customer relationship continue to act as a strong lever. We have grown steadily 4:03 4 minutes, 3 seconds over last 10 years. FY26 is likely to be a challenging year due to tariff 4:10 4 minutes, 10 seconds uncertaintities and geopolitical tensions. Until April 2025, 4:16 4 minutes, 16 seconds we were paying a 6.25% tariff in US market. Post that a 10% 4:23 4 minutes, 23 seconds base tariff was added taking the total impact to 16.25% which was absorbed in the entire value 4:32 4 minutes, 32 seconds chain. An additional 15% tariff has been imposed with effect from 7th August. We 4:39 4 minutes, 39 seconds are in discussion with our channel partners for an amicable solution for this. Currently with the announcement of 4:46 4 minutes, 46 seconds a further 25% tariff we are evaluating our next steps and we hope that this 4:53 4 minutes, 53 seconds will end in a better way. I would like to mention here that the first 10% 4:59 4 minutes, 59 seconds impact could have been 100 cr in the bottom line that means 33 cr for the 5:06 5 minutes, 6 seconds quarter 1. However, it was absorbed by all our efforts during the entire supply chain. 5:15 5 minutes, 15 seconds Our focus remains on capturing new opportunities in all business segments like automotive, architectural and 5:22 5 minutes, 22 seconds shrink labels while manufacturing products in a costefficient manner and improving operational efficiencies. We 5:30 5 minutes, 30 seconds are also on track with our strategic investments including the second PPF line and the upcoming TPU plant both of 5:39 5 minutes, 39 seconds which are expected to drive our next phase of growth. 5:43 5 minutes, 43 seconds We remain committed to navigating the current environment with agility while laying foundation for a stronger and 5:51 5 minutes, 51 seconds more resilient future. With that, I will hand over to Abhishek Agraal to walk you through the financials. Thank you. 6:03 6 minutes, 3 seconds Thank you Deepak and good evening everyone. 6:07 6 minutes, 7 seconds Let me take you through the financials for the Q1 of FI26. 6:11 6 minutes, 11 seconds Our consolidate revenue for the quarter stood at 495 cr compared to 475 crores 6:18 6 minutes, 18 seconds in the Q1 of FI25 which translates to a 4.3% growth year on year. This is achieved even uh in the rate of operating environment. 6:30 6 minutes, 30 seconds AITA stood at 123 cr versus 130 cr in the last year while the AITA margin was 24.8% versus 27.4% 4% in Q1 FI25. 6:43 6 minutes, 43 seconds The reduction was primarily on account of increased employee and marketing cost which is a strategic in investment 6:50 6 minutes, 50 seconds towards the long-term growth of the company. 6:54 6 minutes, 54 seconds The PBT declined by% 210.3 CR versus 117.5 CR in the same quarter last year. 7:02 7 minutes, 2 seconds This is consistent with the revenue mix and investment expansion. 7:07 7 minutes, 7 seconds PAT for the quarters stood at 83 CR compared to 88.44 four four crores in F Q and FI25. 7:15 7 minutes, 15 seconds On the balance sheet front, we remain in a strong position debt free along with a 700 plus cr of cash and cash 7:22 7 minutes, 22 seconds equivalence. This provides us ample headroom for our ongoing capex initiatives and potential strategic investments. 7:30 7 minutes, 30 seconds We continue to invest in innovation, global expansion and long-term brand building with which will position us to capitalize on growth opportunities in 7:38 7 minutes, 38 seconds the coming quarters. With that we now open the floor for questions. Thank you. 7:46 7 minutes, 46 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask question may press star and one on the dashstone telephone. 7:56 7 minutes, 56 seconds If you wish to remove yourself from question q, you may press star and two. 8:02 8 minutes, 2 seconds Participants are requested to use sensors while asking a question. Ladies and gentlemen, we'll wait for a moment while the questions. 8:16 8 minutes, 16 seconds The first question is from the line of Mahesh Pentry from LIC. Please go ahead. Uh hello, I'm audible sir. 8:25 8 minutes, 25 seconds Yes. 8:26 8 minutes, 26 seconds Uh sir uh in terms of uh just trying to understand your uh strategy given what has happened with your uh tariff. So we 8:35 8 minutes, 35 seconds have very strong presence in Europe and uh we also transiting into Middle East. 8:40 8 minutes, 40 seconds So new product new geographies. So what is the alternative strategy or geographies we're looking for the growth? 8:48 8 minutes, 48 seconds Yeah. So uh on on alternative geographies uh we have like added new manpower in Europe and Middle East. 8:59 8 minutes, 59 seconds Middle East we are in fact growing pretty fast and we expect around 30 to 40% growth in Middle East this year and 9:09 9 minutes, 9 seconds uh this is basically uh um mainly this is happening into architectural segment 9:15 9 minutes, 15 seconds because uh we were already uh pretty strong in automotive segment in Middle East but the growth which was limited to 9:25 9 minutes, 25 seconds earlier UAE and around the areas now we are doing really penetrating well in most advanced market like uh Kingdom of Saudi Arabia. So we have added manpower. 9:37 9 minutes, 37 seconds we are putting lot of uh digital media uh and other marketing efforts in Middle East to grow the business to uh around 9:45 9 minutes, 45 seconds 30 to 40% uh this year and in Europe we already added like manpower 6 month back 9:52 9 minutes, 52 seconds and there also we are seeing quite strong growth in that region and of course like you asked about the other 9:59 9 minutes, 59 seconds reasons but even in United States we are trying uh uh uh to because we have added 10:06 10 minutes, 6 seconds good new resources there as well. So to to compete with the current scenario we are working on a very strong measures 10:15 10 minutes, 15 seconds which leads to cost-saving uh efforts that means we are trying to make the product with uh I mean these are like 10:23 10 minutes, 23 seconds some innovative way same the product we are trying to make it with different ways which with improving our 10:30 10 minutes, 30 seconds efficiencies which gives us lot of benefit lot of headrooms to uh to mitigate the impact of uh tariffs from 10:38 10 minutes, 38 seconds US and sir uh I think what I learned is 10:45 10 minutes, 45 seconds that the whatever the US exposure we have I think half of the exposure is basically into our brands I think we have three brands under which we will 10:54 10 minutes, 54 seconds sell the product so in that case the tariff will not impact that part of business right 11:00 11 minutes uh tariff will impact the overall business but this what you are saying half of the business which is through 11:08 11 minutes, 8 seconds our channel partners uh we will have a strong advantage there as compared to the other business. Having said that the 11:16 11 minutes, 16 seconds entire customer base we had a discussion and they all are aligned they understand the situation. So uh I mean uh we will 11:25 11 minutes, 25 seconds find out a solution but to an extent what you are saying is correct. Sure. Thank you so much sir. 11:33 11 minutes, 33 seconds Thank you. Thank you. 11:38 11 minutes, 38 seconds The next question is from the line of Ashish Opangarvala from Invest QPMS. Please go ahead. 11:46 11 minutes, 46 seconds Uh yes sir. U just continuing on this very important subject of where we stand uh after this uh tariff. So uh couldn't 11:55 11 minutes, 55 seconds understand the your uh thinking in detail. Is it that um you said Middle 12:01 12 minutes, 1 second East uh uh you would be um I mean sending the goods from there or I mean very difficult to understand. So can you 12:10 12 minutes, 10 seconds please clarify how are we strategizing in case this situation with tariff maybe ends up maybe 30 40% if not 50% of 12:17 12 minutes, 17 seconds tariff how do we maneuver the business accordingly? 12:21 12 minutes, 21 seconds Yeah. So we u um what I said is not related to where we manufacture. uh the 12:28 12 minutes, 28 seconds the first question was related to our growth uh in Middle East and Europe that means alternative geographies. So I explained that we have added manpower. 12:39 12 minutes, 39 seconds We have stepped up our efforts in marketing uh to grow those markets. uh because that Saudi and Middle East, 12:48 12 minutes, 48 seconds entire Middle East is a very big market uh for cars as well as buildings and uh that area is very still growing very 12:57 12 minutes, 57 seconds fast in terms of uh real estate growth and um I mean sun control film for 13:04 13 minutes, 4 seconds architectural segment is one of the key uh part of uh that growth. I mean we are 13:10 13 minutes, 10 seconds putting lot of efforts to directly enter into contracts with those uh builders and uh uh companies who are who are doing uh architectural business there. 13:23 13 minutes, 23 seconds So that was the first question. But now if you are talking of how do we maneuver in if that continues first of all we 13:31 13 minutes, 31 seconds hope like some solutions will come uh we hope for that but we are preparing for 13:37 13 minutes, 37 seconds like uh whatever can go here. So in that way we are reducing our cost means the manufacturing these products there are 13:46 13 minutes, 46 seconds various ways we can improve a very good amount of efficiency there. And second thing is in terms of power and other 13:54 13 minutes, 54 seconds initiatives we are uh taking uh these initiatives to reduce the cost on that. 13:59 13 minutes, 59 seconds So there are many initiatives which companies working internally and lastly if that remains a long-term game we are 14:06 14 minutes, 6 seconds also evaluating like what can be done uh for a longer term uh like after the cost savings and better efficiencies and all. 14:16 14 minutes, 16 seconds So that also evaluation is going on but at this uh event unless it is formalized in full I won't be able to give much 14:24 14 minutes, 24 seconds light on that. So sir two things wanted to understand one is that uh we would be selling there directly or we are selling 14:32 14 minutes, 32 seconds through some channel partners and then uh the tariff would be on the uh the the 14:38 14 minutes, 38 seconds your bill value which goes out but uh uh on the ultimate price to the customer that percentage will be lower. So if you 14:46 14 minutes, 46 seconds could explain if things have to be passed on to the customer and to the value chain uh overall how would it work 14:54 14 minutes, 54 seconds because I think even if it is 50% uh the markup could be uh I mean much lower given the your your cost to the 15:03 15 minutes, 3 seconds distributor and beyond that uh there would be multiple in terms of pricing uh that is what one thing we wanted to understand and secondly is there an 15:12 15 minutes, 12 seconds option of alternative manufacturing in in the US because your competitors would also be feeling the same heat because probably USm made manufacturing won't 15:21 15 minutes, 21 seconds happen. It would be sourced from somewhere else. So how is the entire scenario panning out now? 15:26 15 minutes, 26 seconds Yeah. So uh the thing is uh to answer uh the first question uh like you you have 15:35 15 minutes, 35 seconds uh summarized it well that there are you know where are the cost of selling from 15:42 15 minutes, 42 seconds here to USA to your uh your own company and from there to the customers. You are right. I mean there are some um benefits 15:52 15 minutes, 52 seconds which company can take but again uh because of the confidentiality in nature 15:59 15 minutes, 59 seconds your direction is right but I won't be able to tell you the exact uh numbers or exact thing what we are doing because 16:06 16 minutes, 6 seconds that is proprietary to the company but definitely your thought process is correct right so that that is the 16:12 16 minutes, 12 seconds possibility and this kind of u cost pressure can be reduced by doing such kind of things right by by uh I mean 16:22 16 minutes, 22 seconds there is a leverage there so that is done. Second thing is in terms of the current situation in the market. So let 16:29 16 minutes, 29 seconds me tell you like the Korean uh products first of all gware or global competes with the products which are manufactured 16:37 16 minutes, 37 seconds in America. They hardly compete with the products which are manufactured from China, Korea and any other country. But 16:45 16 minutes, 45 seconds when we talk of US manufacturers, I won't name them but they also have backward integration or their products. 16:53 16 minutes, 53 seconds some of them are coming from um China and Korea or from any other part and the duty impact has also hit them uh uh 17:03 17 minutes, 3 seconds pretty hard and that's why we have seen some price increase into the market to the end customers right so all those 17:10 17 minutes, 10 seconds being documented properly studied and because this is only a situation unfortunately changed in dayto-day basis 17:18 17 minutes, 18 seconds in last uh week or so so we are still evaluating But we are now feeling confident that something will come out. 17:26 17 minutes, 26 seconds As I said the this is challenging without a doubt but we have options where we can uh pull everything together and make the best solution uh for us. 17:39 17 minutes, 39 seconds So sir last thing if I can ask um how does this work? I mean in certain industries a 20% tariff was uh supposed 17:48 17 minutes, 48 seconds to be uh not as um affecting the bottom line as much maybe couple of percentage point on debit for till it gets absorbed 17:57 17 minutes, 57 seconds into the market uh with cost efficiencies people could have managed but in your industry or in your case how 18:05 18 minutes, 5 seconds much of a tariff is manageable is it uh is it maybe 20% and beyond that it becomes uh becomes a very big it on the 18:13 18 minutes, 13 seconds profitability overall. Uh so so any bench uh any metrices on that if you can share it will be helpful to us for us to 18:20 18 minutes, 20 seconds understand the uh gravity of the situation overall. 18:24 18 minutes, 24 seconds See in any case like I explained in detail that 6% and then it went to 16% 18:32 18 minutes, 32 seconds which was a comfortable situation another 15% we are working like I said 18:39 18 minutes, 39 seconds but this last 20% is still I mean that's uh I can say that is uh very difficult 18:47 18 minutes, 47 seconds and uh situation it makes it more I would say challenging so I mean the 18:55 18 minutes, 55 seconds initial ones like I gave you an example 10% could have hit us on with 100 crores on the bottom line right that's a big 19:02 19 minutes, 2 seconds number which is 33 cr on the bottom line but you saw the results which are and that started from April itself so we 19:11 19 minutes, 11 seconds were hardly impacted by this because there were some other things like monsoon and other but we navigated so we 19:18 19 minutes, 18 seconds are confident for some other percentage can be similarly traded off and beyond that it's very difficult to say what 19:26 19 minutes, 26 seconds will hit what will not because definitely it's uh it's something which is macro at the macro level that 19:34 19 minutes, 34 seconds government has to do but beyond a certain number it's very difficult to absorb that so we have to work towards 19:41 19 minutes, 41 seconds that and we are hopeful something better will come out I can't give you a number like beyond this we can't do and there is something which is you know for the 19:50 19 minutes, 50 seconds confidentiality reason we have lots of uh things where where we can do like whatever I can share in terms of 19:56 19 minutes, 56 seconds operational efficiencies, power cost and uh alternative geographies but beyond that it's a a little bit of 20:03 20 minutes, 3 seconds confidentiality nature where uh we would not like to share like what margins to our subsidiaries and selling into uh the market. So that's all I can say. 20:15 20 minutes, 15 seconds Thank you so much sir. Thank you. Thank you. Thank you. 20:20 20 minutes, 20 seconds The next question is from the line of Gunat from TCI. Please go ahead. 20:26 20 minutes, 26 seconds Hi sir. So I would like to understand uh in the US I mean in the segments that we are present in who are our main 20:34 20 minutes, 34 seconds competitors and what is our pricing as compared to them. So do we directly compare with uh compete with 3M or are 20:42 20 minutes, 42 seconds in the segments that we present are the competitors imports from Korea and uh what is our pricing as compared to them? 20:51 20 minutes, 51 seconds So uh pre uh before the tariffs I mean what kind of pricing differential was there and how will the tariff tariffs impact our uh competitiveness? 21:04 21 minutes, 4 seconds Yeah, see um there are four big players um in US market including us right you 21:12 21 minutes, 12 seconds named uh one of them so they are uh pretty uh strong in architectural segment and the others there are two 21:21 21 minutes, 21 seconds more players who are strong in automotive segment right so we have also been pretty strong in automotive and uh 21:28 21 minutes, 28 seconds we are now opened our good strong ways for the architectural segment right so 21:36 21 minutes, 36 seconds uh that's how the competitor stand out because I won't name anyone because uh because of uh uh you know I mean we can 21:44 21 minutes, 44 seconds only talk to them as our peers right or so um now if you talk about the prices 21:50 21 minutes, 50 seconds we were like uh I can say 10 to 15% lower in US market for the obvious reason that we were exporting uh to that 22:00 22 minutes market and they were manufacturing the product there itself. Uh now with after the tariff situation they everyone has 22:09 22 minutes, 9 seconds got impacted because they all of them are doing either uh their uh direct imports from uh other countries or they 22:18 22 minutes, 18 seconds are importing their raw materials like they're manufacturing in USA but they are importing their raw material from other country or raw material of raw 22:26 22 minutes, 26 seconds material being imported. So ultimately and we have seen some price increase also from them which we are also 22:33 22 minutes, 33 seconds evaluating which we will do because these things are very dynamic currently. 22:38 22 minutes, 38 seconds So we don't even know the full impact like how much tier A B C D has increased. So we are studying that and 22:46 22 minutes, 46 seconds definitely there is a scope of price increase which we will take. 22:52 22 minutes, 52 seconds All right. Got it. So uh I mean if we have to track I mean what is the main country from which raw materials are 23:01 23 minutes, 1 second imported and what kind of tariffs do they face with uh with respect to uh if you compare it with our tariffs and also 23:10 23 minutes, 10 seconds earlier you had given a guidance of 2500 cr in FY26. So would you like to revise that to a lower level or do you think it 23:18 23 minutes, 18 seconds is still possible to achieve uh those numbers? what should be the direct impact and now that uh the tariffs have 23:26 23 minutes, 26 seconds been further increased so do you see uh any further impact and if so can you quantify it 23:33 23 minutes, 33 seconds yeah internally as your yeah so the first question is uh we have like a comprehensive tracking mechanism 23:41 23 minutes, 41 seconds our team does like which country is facing how much tariffs and what are the impact to each individuals and how are 23:50 23 minutes, 50 seconds They doing the prices increase table and all those things but obviously that's very 23:58 23 minutes, 58 seconds difficult to share here because again for the confidentiality reason but we have that full access and it's still it's still dynamic because many people 24:06 24 minutes, 6 seconds do it in a week or 15 days time or there is a time lag before the shipment comes uh there in the country right so that 24:14 24 minutes, 14 seconds was the first and second thing on the guide uh guidelines yes of course we have given the guidelines lines of 2500 24:22 24 minutes, 22 seconds that was given 3 years back uh and we continuously move towards that even the last year we 24:29 24 minutes, 29 seconds did 2,100 cr but uh in the current situation we will definitely like uh not 24:37 24 minutes, 37 seconds to say anything or confirm that because this is like something which is a very I would say again something dynamic has 24:45 24 minutes, 45 seconds happened which is beyond our control and it was I can understand even from the government bodies that everybody is like 24:53 24 minutes, 53 seconds uh kind of shock to all business and everyone. So we will need some time before we assess like where we can uh 25:02 25 minutes, 2 seconds reach. So I would not I would like to stay away from giving any guidance right now because this is something even if I 25:09 25 minutes, 9 seconds say something but we don't know how much will be reversed or will happen. So in that situation it doesn't make sense to 25:17 25 minutes, 17 seconds say like uh what would be the guidelines. So we would like to stay away for this at this moment. We have always been very vocal and said whatever 25:26 25 minutes, 26 seconds we could achieve but right now we would not like to say anything on that. 25:31 25 minutes, 31 seconds All the go my last question would be uh you said that prices were 15% lower as compared to peers. So after the first 25:40 25 minutes, 40 seconds initial tariff implementation of first 25% you said that the the competitors also increased their prices. So was that 25:48 25 minutes, 48 seconds delta of 15% still maintained uh till the first 25% tariffs were announced? 25:55 25 minutes, 55 seconds Sir the first 25 was announced 3 days back. So that's what I said. I mean we were on I gave you with the timeline 26:04 26 minutes, 4 seconds that it was only 10% additional from April till um uh August 1st but the 26:11 26 minutes, 11 seconds announcement was last week only. So we are evaluating that. Of course there the delta which we had right where we were 26:18 26 minutes, 18 seconds little lower we can take advantage of that situation right and we can take corrective actions uh in terms of 26:25 26 minutes, 25 seconds whatever we can gain from the market because we also we we are working towards like I said on the costsaving 26:32 26 minutes, 32 seconds measures and at the same time uh we would like to retain our customer base. 26:38 26 minutes, 38 seconds So that's the first priority for us uh going forward. So I hope I answered your question because it's so dynamic that it 26:47 26 minutes, 47 seconds will take for us to take some time. In fact I would say we don't know that that 26:54 26 minutes, 54 seconds something changes in next 15 20 days because we understand the delegations are still happening towards the end of 27:00 27 minutes the month and the negotiations are still going on. So we cannot comment at this moment on on that particular situation. 27:09 27 minutes, 9 seconds All right sir. So uh when it comes to a customer base or sorry to interrupt sir I just request you to rejoin the queue for the followup question. 27:17 27 minutes, 17 seconds Thank you. Yeah thank you so much. 27:20 27 minutes, 20 seconds The next question is from the line of sunil J from NML bank securities. Please go ahead. 27:27 27 minutes, 27 seconds Yeah thanks for taking my question. Uh sir my question relate to uh considering uh let's say worst case scenario and uh 27:36 27 minutes, 36 seconds we get a 50% uh duty uh in that case uh if suppose we are not able to sell much 27:43 27 minutes, 43 seconds in the US uh whether the plant will be fully utilized and if uh yes then uh how the product can be diverted to other 27:51 27 minutes, 51 seconds other geography and uh what could be the impact on the margin in that case. 27:57 27 minutes, 57 seconds Yeah. See, again that's a I mean I would say it's a hypothetical question but of 28:05 28 minutes, 5 seconds course um I mean what you say is in the current light of the situation you are right. I mean if we assume that that 28:12 28 minutes, 12 seconds situation remains. So in that case I think u we would uh um I mean maintain 28:20 28 minutes, 20 seconds we would like to maintain uh of course our top line in the market because we never work uh in other markets for 28:29 28 minutes, 29 seconds example Middle East and Europe in uh in light of that what we are doing in USA right we have grown in all geographies 28:38 28 minutes, 38 seconds of course these geographies are little smaller than what US is but our efforts is to grow on all alternatives 28:46 28 minutes, 46 seconds geographies which we are already doing right and our target would be to uh to 28:53 28 minutes, 53 seconds retain the customer base whatever we are having and we have some ways where we can as I said there will be operational 29:02 29 minutes, 2 seconds efficiencies and power cost and some of the alternative methods uh where we will 29:08 29 minutes, 8 seconds be able to reduce the impact of that and we will be we should be able to maintain 29:15 29 minutes, 15 seconds the customer line but of course there will be definitely some impact on the bottom line if the situation prevails. 29:24 29 minutes, 24 seconds Okay. So uh that's great. Uh second thing is about India. So 29:32 29 minutes, 32 seconds you said that film got impacted and uh also this uh uh other uh uh sun control 29:40 29 minutes, 40 seconds is also got impacted. But what about PP uh F? Uh how so in India 29:48 29 minutes, 48 seconds PPF? Yeah. So PPF has grown like I said overall PPF has grown by around 28% as 29:56 29 minutes, 56 seconds compared to last year because it is it does not have seasonality impact right so it was unaffected in fact we have grown good around 28%. 30:06 30 minutes, 6 seconds That is overall number that is export plus domestic consumption but at the same time in the domestic market also it has grown around 25 to 30%. 30:19 30 minutes, 19 seconds Same I mean around 28% overall but it has grown to all geographies. So that business is still growing because it does not have any impact of seasonality. 30:30 30 minutes, 30 seconds how much it contribute to India revenue or or overall revenue India PPF. 30:37 30 minutes, 37 seconds So uh India business is roughly uh around 20 to 23% of PPF revenues. 30:49 30 minutes, 49 seconds Last thing uh uh about you uh studio and all uh now how many more studio you have added and what's the current numbers? 30:59 30 minutes, 59 seconds So current number we have 250 plus uh and uh we are now targeting towards 300. 31:07 31 minutes, 7 seconds Great sir. Thank you very much. Thank you. 31:14 31 minutes, 14 seconds Thank you. The next question is from Rhino Shikhar Mundra from Bure Commercial Limited. Please go ahead. 31:24 31 minutes, 24 seconds Can you give a geographical split between the exports? How much we are doing from Middle East and how much from USA? 31:31 31 minutes, 31 seconds Yeah. So u we are doing roughly uh just one sec. 31:40 31 minutes, 40 seconds So we are doing roughly 45% in America in US and uh uh around once again let me just pull out the numbers. 32:02 32 minutes, 2 seconds Yeah. 32:09 32 minutes, 9 seconds So it's uh around uh uh I mean I can say uh in uh domestic market we are doing uh 23.5%. 32:18 32 minutes, 18 seconds and then 12 to 13% in uh Europe and between 3 to 5% in Middle East. So but 32:27 32 minutes, 27 seconds the numbers as I said uh is growing very fast in Middle East and Europe right and of course in India 32:35 32 minutes, 35 seconds and and what was the growth rate for Middle East you said 30 40% and how about Europe? Uh Europe could be uh around 20%. 32:44 32 minutes, 44 seconds because it's a established market there we have to you know get shares from other uh competitors so that's why Europe we are targeting around 20%. 32:55 32 minutes, 55 seconds Whereas Middle East we have added like a good manpower and we have done lot of initiatives and we are seeing the 33:03 33 minutes, 3 seconds traction towards 30 40% growth in Middle East right and and for this take 10% car in 33:11 33 minutes, 11 seconds Q1 how much of a hit we had to take or how much of absorption we had to do and how much did our supply chain do or it 33:19 33 minutes, 19 seconds was entirely our supply chain which did no when I say supply chain it means everyone including us because entire 33:26 33 minutes, 26 seconds from us till the customer right the impact could have been like I said last year almost a th00and cr export to US 33:35 33 minutes, 35 seconds market was like 10% means 100 cr to that which was like 33 cr could have been in this quarter or I would say 25 uh 33:44 33 minutes, 44 seconds because uh of second half of April thing but we got hard hardly I think uh around 33:51 33 minutes, 51 seconds 3 to 4 cr uh rest we were able to uh do during the ch during uh I mean in between our supply chain. 34:02 34 minutes, 2 seconds Okay. Okay. And and based on your interaction with the supply chain like how much of a absorption is more 34:09 34 minutes, 9 seconds possible for them like at what level uh I mean we'll have to stop supplying to the US. 34:17 34 minutes, 17 seconds As of now we don't see that we will stop supplying but of course like I answered the question already that there will be 34:25 34 minutes, 25 seconds if this situation prevails there will be definitely impact on the bottom line right but the we don't see the situation 34:34 34 minutes, 34 seconds like that we will stop uh supplying there all thank you and thank you 34:43 34 minutes, 43 seconds thank you the next question is from the line of parish Kabra from PK advisors please go ahead. 34:51 34 minutes, 51 seconds Hi thank you for the opportunity. Uh just one quick question. How much of this quarter's uh you know impact on 34:58 34 minutes, 58 seconds revenue was because of uh the tariff versus because of the early milestones. 35:04 35 minutes, 4 seconds Is it possible to quantify at least directly what is the I think around uh total if you talk of 35:11 35 minutes, 11 seconds revenue around uh 25 to 30 CR uh uh because of uh uh this uh season and 35:22 35 minutes, 22 seconds rainy season and around 20 cr because of uh in IPD mainly because I can tell you that in sun control and PPF we did not 35:30 35 minutes, 30 seconds see much of the impact but in in industrial product because that's a long supply chain and low margin products uh 35:38 35 minutes, 38 seconds in in our value chain. So that's why we saw that into our uh shrink business. Got it. 35:45 35 minutes, 45 seconds So 20 growth roughly. 35:48 35 minutes, 48 seconds Got it. So I was just wondering that why uh you know one would think that with the threat of the upcoming tariff there 35:56 35 minutes, 56 seconds would be you know fill up in the in the channels rather than a slowdown in the ordering right because the tariff hadn't been hadn't been implemented yet as of 36:05 36 minutes, 5 seconds the last quarter. So why was there slowdown in anticipation? 36:10 36 minutes, 10 seconds Yeah. See uh what happens is u because uh the situation has happened uh in uh towards China that when there was 36:19 36 minutes, 19 seconds announcement of 150% and all those things these guys are noting down and then what happened is there were some product and they had to pay that kind of 36:27 36 minutes, 27 seconds duties and then it was lowered right so people want to wait till they are in extreme urgency to get the product maybe 36:36 36 minutes, 36 seconds by air or so so especially as I said we didn't see the much I mean it may be 5 10% in in PPF and sun control business 36:46 36 minutes, 46 seconds but on industrial product business people try to stay away because that's a uh it's industrial product means they have the stocks and then they 36:55 36 minutes, 55 seconds manufacture then it goes to label printing and all. So it's a cycle of around 3 to 5 months right. So that 37:02 37 minutes, 2 seconds cycle people really feel afraid of that because especially the margin there are lower uh pretty low as compared to other 37:12 37 minutes, 12 seconds value chain. So that particular thing uh delays or of course they try to buy more 37:20 37 minutes, 20 seconds and more though they will not be pretty happy with the the domestic suppliers but they will continue they will they 37:29 37 minutes, 29 seconds will buy buy from there. they will avoid imports from India. 37:34 37 minutes, 34 seconds Got it. And sir, I got a little bit confused although you answered this question. Uh I'm not sure I've understood the answer properly is that the people you're competing with, they 37:42 37 minutes, 42 seconds are not the ones they are the ones that are manufacturing in the US but they have some supply chain coming from China and Korea. I think that's what you tried 37:50 37 minutes, 50 seconds to say. Uh and because China and Korea are also facing tariffs, their costs have also gone up. But their costs have 37:56 37 minutes, 56 seconds not gone up commensurate to our cost. Is that the fair way of looking at it? 38:01 38 minutes, 1 second Yes. Yes. I mean, see what happened is we were in a good position uh prior to like the implementation of the the 25% 38:11 38 minutes, 11 seconds which was announced last 17 10 days back right and Korea was 25 that was lower to 38:18 38 minutes, 18 seconds 15. So in one I would say 7 to 10 days the situation flipped right they were 38:24 38 minutes, 24 seconds like 25 and they went down to 15. We were at we are at 10 and hoping for a better solution. So we went to 25. 38:35 38 minutes, 35 seconds So that's there and China I don't want to comment because it's lots up and down happening. We don't know how much is ex 38:42 38 minutes, 42 seconds exactly because there are so much exemption so much inclusion exclusion. 38:47 38 minutes, 47 seconds So things are being uh you know that's volatile I can say. 38:52 38 minutes, 52 seconds Got it. So for the Americans the the the only alternative is going to be of course he can either go to China or 39:00 39 minutes Korea in case the delta is significantly lower but is it realistic for them to manufacturing it it in America itself 39:06 39 minutes, 6 seconds that ever be a possibility I would again this will be little I mean I can answer that yes it's difficult in 39:15 39 minutes, 15 seconds in US but I won't go much beyond why and all but we we feel it's it's it's not feasible 39:23 39 minutes, 23 seconds And also I would like to tell everyone that you know the product it's not very easy replacement like you know you can 39:31 39 minutes, 31 seconds just not replace by our product with someone else because it comes with lot of technicalities that means the visual 39:38 39 minutes, 38 seconds light that means the color that means the the IR rejection which works for a particular you know particular segment 39:47 39 minutes, 47 seconds of cars because of the you know the uh law laws in different states like what VT you can 39:55 39 minutes, 55 seconds put what VT you cannot put and the liking of the customers they are it's very important when they see the 40:03 40 minutes, 3 seconds aesthetics and also see how much of heat rejection is looking for normally in advanced market like us they look for 40:11 40 minutes, 11 seconds more than 90% of near infrared blockage so and and our products being uh you 40:18 40 minutes, 18 seconds know deep dive with nano dispersion facility people like the product and they have been using for the dealer distributor 40:27 40 minutes, 27 seconds for last 20 25 years. So and even the applicators they know the quality of the product in terms of application and the 40:35 40 minutes, 35 seconds ultimate performance of the product. So it's it's uh not that easy to replace the chain very quickly. So that's why I 40:44 40 minutes, 44 seconds said we will try to maintain our customer base. There will be little up and down or up and down in the bottom 40:50 40 minutes, 50 seconds line uh depending on what the ultimate uh tariff uh is done for us. 40:58 40 minutes, 58 seconds All right. Thank you so much. Thank you. Thank you very much. Thank you. 41:03 41 minutes, 3 seconds The next question is from the line of Vine Natkarnney from Headway Investments. Please go ahead. 41:10 41 minutes, 10 seconds Yeah, thank you for I wanted this two questions. One is uh uh we had around 12 to 13% of our 41:18 41 minutes, 18 seconds business coming from Asia other than India. Uh is that number still valid or is it changed? 41:25 41 minutes, 25 seconds Sorry sir is from Japan. 41:28 41 minutes, 28 seconds You are not audible a little bit. Can you repeat the question please? 41:32 41 minutes, 32 seconds Yeah I'm saying out of your total business around 12 to 13% used to come from Asia other than India. Correct. 41:41 41 minutes, 41 seconds Right. So is that is that still there and how much of it is from Japan? 41:49 41 minutes, 49 seconds Uh Japan is uh very low in the number because uh uh I mean that's a not a very 41:57 41 minutes, 57 seconds big market and there are some uh producers already have very strong presence uh there. So the numbers are uh more or less same between 12 to 13%. 42:10 42 minutes, 10 seconds Okay. And uh secondly on this the revenues that you gave just now the loss of revenues because of drop in seasonal 42:17 42 minutes, 17 seconds and this 25 to 30 cr drop in seasonal is only the Indian market right? 42:21 42 minutes, 21 seconds Yes. Yes. I'm talking only Indian market and uh this 20 cr IPD drop could be because of uh only the US market. 42:30 42 minutes, 30 seconds Yes. The drop in the delay in the decisions and all. 42:33 42 minutes, 33 seconds Yeah. So total around 45 crores. So you're comparing with your budgeted numbers for this quarter. 42:40 42 minutes, 40 seconds Yeah. So that's what if we had we achieved that we could have touched around 550 cr. So that would have been 42:47 42 minutes, 47 seconds reasonable because uh the fact is if you really see the performance of our company FY 24 versus FY25 and now FY 26. 42:57 42 minutes, 57 seconds So 24 to 25 the bottom line has almost done the double if I 88 to 90% growth has happened last year and very good 43:06 43 minutes, 6 seconds growth on the top line. So this year with all those factors I mean we expected those numbers like 550 or so. 43:14 43 minutes, 14 seconds So like we are on track and we expect I mean we expected uh uh the similar numbers from us. 43:23 43 minutes, 23 seconds Okay. Thank you. And last question was on exports. How much is uh in quarter 126 from what is the export percentage? 43:32 43 minutes, 32 seconds So export again u I mean we tried uh since little uh better going into uh the 43:41 43 minutes, 41 seconds market. So the export revenue uh uh sorry domestic revenue uh increased uh 43:49 43 minutes, 49 seconds uh slightly so it was to be very precise it went to 27.5% in India and total export happened around 72.5%. 43:59 43 minutes, 59 seconds Okay, thank you very much. Thank you. Thank you. 44:04 44 minutes, 4 seconds Thank you ladies and gentlemen. In order to ensure that management is able to address questions from all the participants in 44:11 44 minutes, 11 seconds the conference, please limit your version to two question per participant. 44:15 44 minutes, 15 seconds Do you have a follow-up question? We request you to rejoin the queue. 44:20 44 minutes, 20 seconds The next question is from the line of Sishp from KRSP Capital Limited. Please go ahead. 44:28 44 minutes, 28 seconds Yeah, thanks for the opportunity. Sir, you mentioned that beyond the point of tariff percentage you cannot manage. So 44:35 44 minutes, 35 seconds what is the percentage of tariff that you can manage by improving operational efficiency and cost cutting and all those things? 44:43 44 minutes, 43 seconds See uh I mean uh honestly we are doing lot of efforts to improve those efficiencies and other methods but 44:52 44 minutes, 52 seconds uh for uh you know I mean please understand that I can't give the exact number because we are hopeful to have 44:59 44 minutes, 59 seconds something better. We assure you that like uh in this current scenario we are 45:06 45 minutes, 6 seconds we are we will definitely do I mean good in terms of uh our uh numbers top line 45:13 45 minutes, 13 seconds and bottom line but that exact number is very difficult to give now because still as I said this dynamism though we were 45:20 45 minutes, 20 seconds working on the efficiencies from war levels in April because we expected anything might happen but this last 45:28 45 minutes, 28 seconds numbers became like a shock I and these kind of things really need a careful consideration. As a company we do lots 45:36 45 minutes, 36 seconds of due diligence before we can say anything uh into that. So I request uh that uh I uh I mean allow me to maintain what I said. I can't say beyond this. 45:48 45 minutes, 48 seconds Okay fine fine. Thank you. Thank you. Thank you. 45:54 45 minutes, 54 seconds The next question is from the line of Kishan to Nal from Polar Ventures LLP. Please go ahead. 46:02 46 minutes, 2 seconds Uh good evening. Uh I have two questions basically. Uh the business of uh studio that you started in India, how is that 46:11 46 minutes, 11 seconds progressing and the revenue can you split the revenue from that as well? 46:18 46 minutes, 18 seconds Yeah. See uh the thing is uh this particular business is a franchisee model. So we track the growth of them in 46:26 46 minutes, 26 seconds terms of like how much total we are doing. But I can tell you like I said we are growing between 25 to 30% into PPF 46:35 46 minutes, 35 seconds business and around 15 to 20% in sun control business in India. So the primary growth now because entire 46:44 46 minutes, 44 seconds channel has been kind of we are the major supplier and having the market penetration of more than 60%. So now the 46:53 46 minutes, 53 seconds growth is coming mostly coming from that channel only. So we can attribute I think like the new growth whatever we 47:01 47 minutes, 1 second are having 15 to 20% in sun control films and 25 to 30% in PPF is linked to 47:09 47 minutes, 9 seconds uh the Gerwar application studios and and how's the margin profile in that 47:17 47 minutes, 17 seconds so margin profile is because what we are uh to protect them what we are doing we are giving them some unique products 47:25 47 minutes, 25 seconds like uh titanium ppf F is uh dedicated to them. Then we have also launched one more category of PPF and one or two 47:34 47 minutes, 34 seconds different categories of uh uh kits. So the margin uh from that particular product because we support the gas but 47:43 47 minutes, 43 seconds still that is one of the we give them the best of the best uh products and their average is higher than what we do through the normal distribution channel. 47:53 47 minutes, 53 seconds Right? And just to mention that since that has been a flagship studios which are the franchisee model. So we have we 48:02 48 minutes, 2 seconds give more facilities to them like I said unique products to them which we do not sell into the market. Then we give them 48:09 48 minutes, 9 seconds the benefit of Bajage finance then insurance and then couple of uh coatings which we provide and cleaning equipment. 48:18 48 minutes, 18 seconds So overall that's a model which is franchisee based and gives us on an 48:24 48 minutes, 24 seconds average 10 to 15% uh better margins that what we achieve from the market through our normal channel. If I can squeeze in 48:33 48 minutes, 33 seconds one more question. Yes. I just wanted to know that uh the PPF business that we are doing 48:40 48 minutes, 40 seconds uh what is the split between India and outside India and how is Indian market growing? What is the acceptance ratio in 48:48 48 minutes, 48 seconds India or how the PE how the customers are accepting it? 48:53 48 minutes, 53 seconds So as I indicated in my earlier question that India uh is around 25% of uh 49:00 49 minutes overall PPA business right and uh that segment is continuously growing our overall growth has been last year to 49:08 49 minutes, 8 seconds this year has been 28%. And both markets uh India and export has grown almost 49:15 49 minutes, 15 seconds equal numbers 25% to 30% on an average both. So the and that is also around 25% 49:23 49 minutes, 23 seconds of our total uh uh export market. In fact in PPF the revenue mix is going 49:31 49 minutes, 31 seconds high towards Middle East uh and uh European side. I mean that's slowly increasing. So but again we don't want 49:39 49 minutes, 39 seconds to go much detail because now current situation is because of this geopolitical tariff situation. All 49:46 49 minutes, 46 seconds right. We are evaluating if you can further penetrate especially uh the ppf business uh into these geographies. 49:55 49 minutes, 55 seconds Thank you. Thank you. Thank you. 50:00 50 minutes The next question is from the line of Aditi from Abakus. Please go ahead. 50:06 50 minutes, 6 seconds Hello sir. Uh you just mentioned that there are currently 250 studios and you would like to reach the target of 300. 50:14 50 minutes, 14 seconds Could you please clarify on the timeline for the same? 50:18 50 minutes, 18 seconds See uh we will since the initial growth has been uh very uh I would say phenomenal. So by end of this year that 50:27 50 minutes, 27 seconds is March uh 31st March uh 2026 uh we can complete this year. 50:36 50 minutes, 36 seconds Thank you. Thank you. Thank you. 50:42 50 minutes, 42 seconds The next question is from the Hun Metal from EBISU Investment Advisors. Please go ahead. 50:56 50 minutes, 56 seconds Yes, Mr. Two question. 51:00 51 minutes Is it fair to assume uh you said there were Yeah. Can you hear me? 51:08 51 minutes, 8 seconds Yes. Yes. 51:10 51 minutes, 10 seconds Yeah. I have two questions. One is uh related to uh one is related to the uh the revenue 51:19 51 minutes, 19 seconds that you deferred during Q1 because the early monsoon onset. 51:26 51 minutes, 26 seconds Do you see that uh revenue being pushed back to Q2 and uh and Q3 uh rather than loss revenue? 51:39 51 minutes, 39 seconds I think if the the monsoon started early and if it goes early that means if we see good October heat so surely it can 51:48 51 minutes, 48 seconds come back. I mean it's something let me tell you one straight away it is our revenue uh of uh that particular 51:56 51 minutes, 56 seconds business label business is directly linked to the beverage industry right so um if it happens like we also see when 52:05 52 minutes, 5 seconds uh that if IPL comes or something comes in the summer season those demand increases that's a very direct linkage 52:14 52 minutes, 14 seconds to that particular business of label right so two things one is the label business another is sun control. So if we see better summer more sun then 52:23 52 minutes, 23 seconds definitely these two businesses in the domestic market help us. So if it happens like if it goes in September or 52:31 52 minutes, 31 seconds something and we see good sunlight in September October then definitely it will come back. 52:44 52 minutes, 44 seconds Hello. 52:45 52 minutes, 45 seconds Okay. And uh the second question back to the US uh where you lost about and the 52:52 52 minutes, 52 seconds second question uh regarding theness where you said you lost about 20 cr due to tariff and naturally given the 53:01 53 minutes, 1 second uncertainty around things I think a lot of clients are probably waiting. Yeah. Yeah. 53:06 53 minutes, 6 seconds But is it fair to assume that what will happen is if this uncertainty continues for some more time 53:13 53 minutes, 13 seconds then people would essentially defer uh their purchases but essentially not uh 53:21 53 minutes, 21 seconds you would not lose market share because I think pretty much all players are in the same boat. Is it fair to assume that? 53:30 53 minutes, 30 seconds Uh see I was very certain on the first question but this particular question the the situation is like if uh uh there 53:39 53 minutes, 39 seconds are players which are you know uh producing the product in the nearby countries for example uh South America 53:47 53 minutes, 47 seconds or I mean the major competition comes from uh US market uh US producers as 53:53 53 minutes, 53 seconds well right so if this situation prevails right so we might have to talk on the I 54:02 54 minutes, 2 seconds mean lower margins or lower prices and then compete with them because right now because this was real uncertain like 54:10 54 minutes, 10 seconds happened in case of China where people ordered the goods when it landed in the market and they faced a tariff which was 54:17 54 minutes, 17 seconds which was dropped later on right so that is the uncertainty where people don't know what will happen right in that 54:25 54 minutes, 25 seconds because they all knew from 1st of August or uh initially from 9th of July when 3 54:31 54 minutes, 31 seconds months were over the tariff to India was about to go to 26%. And they were expecting that this might happen in 54:40 54 minutes, 40 seconds between somewhere like the trade deals for instead of 26 it goes to 15%. So that kind of uncertaintity prevailed 54:48 54 minutes, 48 seconds into the market which last 10 days has gone to a different level. So we really 54:55 54 minutes, 55 seconds don't want to give uh that situation that like you know I mean this situation where whatever way this changes we will 55:05 55 minutes, 5 seconds take action accordingly because right now we can't tell them to buy and we will see that because the margins on 55:11 55 minutes, 11 seconds that particular segment is lower than um uh in the consumer productivity. So that's the worry. 55:25 55 minutes, 25 seconds I have a related question to that and I I I don't know whether you'll be able to answer this but uh the new tariff which 55:32 55 minutes, 32 seconds is uh a related question to that uh because the new tariffs were announced 55:39 55 minutes, 39 seconds but it it will be implemented 21 days later and if the goods are in in transit during that period then the new tariff 55:47 55 minutes, 47 seconds is not applicable to the goods in transit. 55:50 55 minutes, 50 seconds Does that mean that because you have a subsidiary in the US, would you be able to stock the inventory there? And 56:00 56 minutes yeah, so for that particular thing, we uh actually honestly what whatever we have we are trying to ship the goods 56:08 56 minutes, 8 seconds before the before it goes onboarded before 27th of August, right? That works on the bill of living. So we are working 56:17 56 minutes, 17 seconds hard to get uh to supply more products before uh uh I mean uh before the 56:24 56 minutes, 24 seconds deadline of 27. So we are working on that. I mean we are doing that uh rather I can say 56:35 56 minutes, 35 seconds yes Mr. Pune is answer your question. 56:37 56 minutes, 37 seconds Okay got it. Uh got it. Thank you so much and all the very best. Thank you. 56:42 56 minutes, 42 seconds Thank you ladies and gentlemen. Due to the time constraint, we will take this as a last question. I would now hand the conference over to Mr. Deepak Jooshi for closing comments. Over to you, sir. 56:54 56 minutes, 54 seconds Yeah. Uh on behalf of uh Gwar Hi-Tech Films Management, I would like to thank 57:01 57 minutes, 1 second all the participants for their uh time uh to listen to us and we would like to 57:08 57 minutes, 8 seconds assure you that we will do our best to protect the interest of our uh investor family. Thank you very much. 57:18 57 minutes, 18 seconds Thank you on behalf of Gervare Highex Flames Limited. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.