Garware Hi-Tech Films Ltd — Q4 FY26

Garware Hi-Tech Films Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=Dpp9AcP3V9g Published: 6 days ago

0:01 1 second Ladies and gentlemen, good day and welcome to Gervari High-Tech Films Q4 and FI26 earning conference call hosted 0:08 8 seconds by Go India Advisor. This conference call may contain forward-looking statement about the company which are based on beliefs, opinion and 0:16 16 seconds expectation of the company as on data of this call. These statement are not the guarantee of future performance and involve risk and uncertainties that are 0:25 25 seconds difficult to predict. As a reminder, all participant line will be in the listen only mode and there will be opportunity for you to ask question after the 0:33 33 seconds presentation conclude. Should you need assistant during the conference call, please signal an operator by pressing star then zero on your touchstone. 0:41 41 seconds Please note that this conference is being recorded. I now end the conference over to Miss Karima. Thank you and over to you ma'am. 0:49 49 seconds Thank you. Good morning everyone and I am Dar Singla and it's my pleasure to welcome you on behalf of Bare Hi-Tech Films Limited. Thank you for joining us 0:57 57 seconds today for quarter 4 and fully FI26 earnings conference call. This call is being hosted by Go India Advisor. Please 1:04 1 minute, 4 seconds note that today's discussion may include certain forward-looking statements. 1:08 1 minute, 8 seconds Therefore, they must be viewed in conjunction with the risks that the company faces. Today on the call, we are joined by Mr. Deepak Jooshi, director of 1:15 1 minute, 15 seconds sales and marketing and Mr. Mr. Abishek Agraal the the CFO. I now invite Mr. 1:20 1 minute, 20 seconds Deepak Doohi to present the company's business outlook and performance after which we will open the floor for Q&A. Thank you and over to you sir. 1:28 1 minute, 28 seconds Thank you Karima. Good morning everyone and thank you for joining us today. I hope you have had a chance to review the presentation that was shared earlier. 1:39 1 minute, 39 seconds Let me take a few moments to walk you through how the year unfolded for us. 1:44 1 minute, 44 seconds Gwari Hi-Tech film is at its heart a story of trust, resilience, and long-term relationships built over 1:53 1 minute, 53 seconds generations. While we have grown into a global enterprise, what continues to guide us are the sum of core principles, 2:02 2 minutes, 2 seconds innovation, integrity, and a customer first approach. FY26 was a year that 2:09 2 minutes, 9 seconds truly tested these values. The global environment remained challenging with geopolitical volatility and elevated 2:17 2 minutes, 17 seconds tariff structure across key export markets. The impact was seen in FY26 full year with most impact felt during 2:26 2 minutes, 26 seconds the third quarter. In such a situation, our response was not reactive but measured. We calibrated our offtake to 2:34 2 minutes, 34 seconds ensure supply chain continuity and more importantly to stand by our customers and partners 2:42 2 minutes, 42 seconds and that made the difference. Despite the challenging environment, we were able to maintain our market share across 2:50 2 minutes, 50 seconds e geographies reflecting the strength of our relationship and superior quality competitiveness of our products. As the 2:59 2 minutes, 59 seconds year progressed, this steady and disciplined approach began to translate into stronger performance. We concluded the year on a strong and positive note. 3:12 3 minutes, 12 seconds Q1 was the highest ever profitability quarter in our history. AITA at INR57 3:20 3 minutes, 20 seconds cr up 29% yearon-year basis and margins expanding to 26.2%. 3:28 3 minutes, 28 seconds Profit after tax stood at INR 108 cr up 39.1% 3:35 3 minutes, 35 seconds yearonear a clear refle reflection of our operating leverage improved realization and a stronger product mix 3:44 3 minutes, 44 seconds for the full year despite the headwinds we delivered our highest ever revenue and profitability with revenue at INR 3:53 3 minutes, 53 seconds 220 crores AITA at uh INR 500 crores and pat 4:00 4 minutes at INR 338 cr. This performance reinforces the resilience of our business model and our ability to 4:08 4 minutes, 8 seconds navigate cycles with discipline. While navigating near-term challenges, we remain equally focused on building for 4:17 4 minutes, 17 seconds the future. We continue to strengthen our value added product portfolio with the launch of sustainable TPU based UV 4:26 4 minutes, 26 seconds printable films. PDLC speciality films enabling privacy on demand and advanced 4:33 4 minutes, 33 seconds graphic solutions. During the year, we depend our market presence across both international and domestic markets 4:41 4 minutes, 41 seconds through strategic customer additions and channel expansion strate initiatives. We witnessed strong traction in the US and 4:50 4 minutes, 50 seconds UK with the onboarding of several established distributors from competition reflecting superior quality 4:57 4 minutes, 57 seconds of our products and unmatched distribution network in India. We further expanded our domestic footprint by onboarding four large OEMs in 5:06 5 minutes, 6 seconds automotive segment along with seven plus strategic addition in our architectural business segment supporting our 5:13 5 minutes, 13 seconds continued expansion in the fast growing B2C segment and enhancing our overall market reach. Alongside our brand 5:21 5 minutes, 21 seconds building efforts are gaining momentum with around 18 lakh annual website visits and over 8 cr impression annually 5:29 5 minutes, 29 seconds across meta platforms strengthening our customer connect. A key part of our journey has been getting closer to our 5:37 5 minutes, 37 seconds end consumers. Globally we expanded our footprint with 11 new global application studios including in the UAE and the US. 5:46 5 minutes, 46 seconds In India, our Gervari application studio network has grown over 250 locations and 5:53 5 minutes, 53 seconds we are on track to cross 300 shortly. In parallel, we are building our strong consumerf facing platform through Gerwar 6:00 6 minutes Home Solutions with six studios already operational. We are confident of scaling this to 50 studios by the end of FY27. 6:11 6 minutes, 11 seconds On the manufacturing side, we have taken significant steps to prepare for the next phase of growth. During last few 6:19 6 minutes, 19 seconds years, we have developed over 500 cr toward capacity expansion across two PPF, one sun control, one metallizer and 6:28 6 minutes, 28 seconds one TPU and other ancillary lines entirely funded through our internal acu reflecting strong cash generation and disciplined capital allocation. 6:40 6 minutes, 40 seconds We announced an additional 191 cr investment in a new sun control film line adding the adding around 1,200 lakh 6:50 6 minutes, 50 seconds square ft² capacity supported by advanced robotics and automation. 6:55 6 minutes, 55 seconds Even after these investments, our balance sheet remains strong and debt-free with a cash reserves of 772 7:04 7 minutes, 4 seconds 774 crores, giving us the flexibility to continue investing while maintaining financial prudence. Looking ahead, the 7:12 7 minutes, 12 seconds upcoming TPU line expected to be commissioned by October 2026 will further strengthen our innovation capabilities. 7:22 7 minutes, 22 seconds We are also encouraged by the recognition we have received during the year including the Plex Plex Council 7:29 7 minutes, 29 seconds highest exporter award and being recognized among India's top value creators by Dun and Brad Street. As we 7:37 7 minutes, 37 seconds look forward, the next phase of growth for Gwar high-tech films will be driven by our high value innovation segments 7:46 7 minutes, 46 seconds including sun control, paint protection films, graphic solutions, garvar home solutions and TPU based new products. 7:56 7 minutes, 56 seconds When we step back and look at the broader picture, our marketing momentum, discipline, capital allocation, 8:04 8 minutes, 4 seconds expanding D2C platform, accelerating B2B growth and continued product innovation makes us well positioned for the next 8:12 8 minutes, 12 seconds phase of growth. Thank you for your continued trust and support. I would like now to hand over to Mr. Abhishek 8:21 8 minutes, 21 seconds Agraal our CFO to take you through the financials performance in detail. Thank you. 8:28 8 minutes, 28 seconds Thank you Deeper and good morning everybody. Let me take you through the key financial highlights for the fourth quarter and full year ended 31st March 2026. 8:38 8 minutes, 38 seconds We closed FI26 on a strong note with Q4 emerging as one of our best performing quarters. Consolidated revenue for the 8:47 8 minutes, 47 seconds quarter stood at 597 crores, reflecting a healthy 8.9% year-on-year growth along with a strong sequential recovery. A 8:56 8 minutes, 56 seconds beta for the quarter came in at 157 crores registering a robust 29% year-on-year growth with margins expanding to 26.2%. 9:07 9 minutes, 7 seconds While the PBT stood at 142 crores up 31% yearonear while PAT increased to rupees 9:14 9 minutes, 14 seconds 108 crores up 39% yearonear reflecting the strong bottomline expansion and improved operating efficiency 9:22 9 minutes, 22 seconds for the full year 2026 we delivered a steady performance despite a challenging external environment 9:31 9 minutes, 31 seconds revenue stood at 2120 crores demonstrating resilience in face of tariff related dis disruptions in the key export markets. 9:41 9 minutes, 41 seconds A bit of for the year was INR finite crores with margins maintained at 23.6 crores 23.6% sorry reflecting our 9:50 9 minutes, 50 seconds ability to sustain profitability across cycles. 9:54 9 minutes, 54 seconds PBT came in at 446 crores while PAT stood at 338 crores with margins improving to 16%. Importantly, our 10:04 10 minutes, 4 seconds balance sheet continues to remain a a key strength. We continued to maintain a healthy deficit balance sheet with cash 10:11 10 minutes, 11 seconds and liquid investments of rupees 774 crores at the year end. 10:17 10 minutes, 17 seconds Our disciplined capital allocation and strong balance sheet give us the confidence to pursue this growth while continue to enhance stakeholder value. 10:28 10 minutes, 28 seconds Thank you all. I'll now hand it over to Deep. Over to the moderator. 10:34 10 minutes, 34 seconds Over to the moderator, please. 10:38 10 minutes, 38 seconds Thank you so much. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may press star N1 on the 10:47 10 minutes, 47 seconds touchstone telephone. If you wish to remove yourself from the question queue, you may press star N2. Participants are requested to use handsets while asking a question. 10:57 10 minutes, 57 seconds Ladies and gentlemen, we'll wait for a moment while the question Qsembles. 11:07 11 minutes, 7 seconds Our first question come from the line of Mahesh Bendri from LIC Mutual Fund. Please go ahead. 11:13 11 minutes, 13 seconds Uh hi, good morning sir. Thank you so much for the opportunity sir. Uh one housekeeping question. I mean um for full year uh proportion of our revenue 11:21 11 minutes, 21 seconds have come from the uh sun control films uh paint production films and uh uh rest uh the uh commodity products. 11:33 11 minutes, 33 seconds Yeah. So uh thank you mah. uh so our revenues uh for uh last year I mean uh 11:40 11 minutes, 40 seconds were almost 50% uh from sun control films and uh both uh 25% from uh uh ppf 11:49 11 minutes, 49 seconds and 25% from IPDS so that that's like a break up for last year 11:56 11 minutes, 56 seconds okay sure and sir uh the u latest expansion that the plan we have prepared so when uh this will become operational 12:04 12 minutes, 4 seconds which year it will start contributing to our uh sales. 12:08 12 minutes, 8 seconds So uh this new sun control film expansion uh commercial production will start uh by June uh 2027. So uh that is uh Q1 FY28. 12:22 12 minutes, 22 seconds Okay. Okay. So this will be uh uh I mean just are we I mean this will be carried in the existing plant or we going to set up a new plant? 12:33 12 minutes, 33 seconds No, no. This is entirely a new plant at the same location, but it's a it's a new facility. The our uh earlier uh sun 12:42 12 minutes, 42 seconds control the the earlier line uh it will be uh adjacent to that line. But this line will have uh more features in terms 12:51 12 minutes, 51 seconds of uh automation and robotics to take us uh uh I mean it will be a new experience 12:58 12 minutes, 58 seconds for our consumers for kind of untouched material which we are trying to make from this new line. It will it will 13:06 13 minutes, 6 seconds improve our efficiency. It will improve our productivity. At the same time I mean it will be entirely new experience for our consumers as we are growing at a 13:15 13 minutes, 15 seconds very fast pace in sun control business and this entirely will be uh export 13:21 13 minutes, 21 seconds focused or is it uh domestic also? So our strategy if we see uh we focus on the both markets. I mean both are 13:30 13 minutes, 30 seconds important but uh the ratios which we expect like growth all across uh the territories though domestic market will 13:38 13 minutes, 38 seconds also grow but ultimately it will be like 80% 75 25 or 8020 ratio between exports 13:46 13 minutes, 46 seconds and domestic market. that ratio will continue because of the overall growth which we are targeting for the company. 13:54 13 minutes, 54 seconds Sure. 13:55 13 minutes, 55 seconds Uh so last question from our mind. Uh so last year our revenue was flat almost 14:01 14 minutes, 1 second revenue what we reported in 25. So if we are to like look out for next two years what kind of growth we anticipate 14:09 14 minutes, 9 seconds uh in terms of sales and uh given the backward integration project is going to come off um what kind of improvement in margin uh we see next two years. 14:21 14 minutes, 21 seconds Yeah. So we expect like you know we have been growing at CAGR more than 20% for 14:28 14 minutes, 28 seconds last four years except FYI 26 which has been uh purely because of sudden 50% 14:36 14 minutes, 36 seconds tariff and which was almost there till the whole year um and around February 20th this all went off so we didn't get 14:46 14 minutes, 46 seconds enough time uh to to recover what was done in the in the last year. So that's the reason because if you see 9 month 14:54 14 minutes, 54 seconds performance was around 10% below our previous year FY25 performance but we 15:00 15 minutes did a great jump in Q4 by taking revenues and uh profitability to highest 15:06 15 minutes, 6 seconds level for us. Uh so that means um this year uh we hope that such situation is 15:14 15 minutes, 14 seconds not there right so we expect minimum 2500 cr uh revenue for FY27 15:21 15 minutes, 21 seconds right and we will maintain 25% plus minus 2% of the guidance earlier we gave 15:28 15 minutes, 28 seconds 25 plus - 3 now we are doing 25 plus - 2% and we expect some margin improvement when TPU line comes on stream and with 15:37 15 minutes, 37 seconds the growth of the company strategy now to direct to consumer D2C business that's why we have emphasized that 15:44 15 minutes, 44 seconds Gerwar application studios global application studios in US and Middle East and Gervare home solutions these 15:53 15 minutes, 53 seconds three are directly to the consumers so uh if you really see our strategy uh D2C supported by our strong campaigns 16:02 16 minutes, 2 seconds marketing campaigns digital campaigns where you saw around 8 cr impression from meta platforms only and website 16:11 16 minutes, 11 seconds visit which used to be like 5,000 7,000 in a month uh it has gone almost uh you know uh close to 1.7 1.8 lakh a month. 16:23 16 minutes, 23 seconds So our digital drive and the focus toward the consumer is the key key focus for uh years to come and um direct to 16:33 16 minutes, 33 seconds consumer is the right strategy and another one thing we are doing we are selling direct to consumer in USA PPF business also. So all those things 16:41 16 minutes, 41 seconds reflects like the key strategy is D2C supported by digital marketing and third 16:48 16 minutes, 48 seconds thing with the innovative new products like in home solutions we are doing uh all sun control films but at the same 16:55 16 minutes, 55 seconds time privacy on demand which are switchable film that means you can make your windows uh like fully opaque semi-transparent and full transparent by 17:04 17 minutes, 4 seconds click of a button. So these kind of new technologies which will we want to make this technology to go to every uh uh 17:13 17 minutes, 13 seconds standard homes in India uh and then it will uh go to abroad. So with all those strategies I mean our major focus is 17:21 17 minutes, 21 seconds brand building and direct to uh consumer uh focus. Sure. Thank you so much sir. 17:30 17 minutes, 30 seconds Thank you. 17:32 17 minutes, 32 seconds Thank you. Our next question comes from the line of Dishi Jan from Ingrid. Please go ahead. 17:39 17 minutes, 39 seconds Hello. Hi, congratulations on great numbers. My questions were mostly regarding first are there any exclusive 17:48 17 minutes, 48 seconds partnerships that we've done with several OEMs or brands for our PPS sales in India. 17:57 17 minutes, 57 seconds Yes, definitely. uh we have four big partnerships uh with OEMs that means OE 18:04 18 minutes, 4 seconds direct uh agreement with the OEMs. So they take our material to their showrooms. We have four such strong 18:10 18 minutes, 10 seconds partnerships and two are already in discussion and samples are already approved. So that is already there. 18:20 18 minutes, 20 seconds Okay. And what are the current utilization levels at all our facilities? 18:28 18 minutes, 28 seconds Yeah. So um uh our sun control uh lines are running around 75 to 80%. So with 18:36 18 minutes, 36 seconds current expected CAGR of around 15% 20% growth there which we are expecting for this year by next year we will be fully 18:44 18 minutes, 44 seconds utilized. So that's why we have announced this capex of 191 cr for sun control lines. PPF we are running at the 18:52 18 minutes, 52 seconds rate of around 85 uh to 89% at current rate. So that also we expect uh to go 19:01 19 minutes, 1 second full and we will use some funibility of the new uh sun control line and think of future expansion if required on that and 19:10 19 minutes, 10 seconds rest TPU line is on target that is coming on October this year. So that's the operating rate for us as of now. 19:21 19 minutes, 21 seconds Uh last question from my side. 19:25 19 minutes, 25 seconds The anti-dumping duty that were that was supposed to come on the cheap imports 19:32 19 minutes, 32 seconds that are happening from China and Korean Korea. So any update on that? 19:38 19 minutes, 38 seconds See uh uh that might be a question. uh I mean uh there may be some you know uh interest or uh confidentiality but the 19:47 19 minutes, 47 seconds news is that uh the all hearing submissions and everything happened all visits what government officials do that 19:55 19 minutes, 55 seconds has also been done so we expect a positive news pretty soon uh as as fast as maybe uh uh this month or next month. 20:05 20 minutes, 5 seconds Okay, thank you. Thank you for answering the questions. Thank you very much. 20:12 20 minutes, 12 seconds Thank you. Our next question come from the line of Rahul Jan from Credence. Please go ahead. 20:20 20 minutes, 20 seconds Thank you for the opportunity. Am I audible? Yes. 20:24 20 minutes, 24 seconds So, first of all, congratulations uh to the entire team of the uh Gavaria uh to 20:31 20 minutes, 31 seconds the promoters also wonderful set of numbers and in a tough environment for the last one year. 20:40 20 minutes, 40 seconds Thank you very much. 20:41 20 minutes, 41 seconds Yeah. So, uh Deepak, we have been talking in the previous two calls about our focus on Middle East. 20:48 20 minutes, 48 seconds So just one and we had formed a subsidiary which was supposed to get completed in this quarter four and we had spoken that various other strategies 20:57 20 minutes, 57 seconds are being put in place including on the marketing side and also whether how this subsidiary would uh further be available 21:05 21 minutes, 5 seconds for some other options including sales across other regions as well as there was a discussion about some manufacturing plant. So first of m if 21:14 21 minutes, 14 seconds you can talk about where are we in terms of sales today in Middle East? What are the various steps being taken and where do you see Middle East sales going up in next one or two years? 21:25 21 minutes, 25 seconds Yeah. So uh uh see uh we consider Middle East North Africa is an MA which is a 21:32 21 minutes, 32 seconds growth uh biggest growth driver for us as of now. Uh let me tell you the sale 21:38 21 minutes, 38 seconds uh uh of that is uh roughly around $15 million uh and we expect uh that a 21:47 21 minutes, 47 seconds growth of around 25 to 30% caggr for the year. So we are targeting 20 to 22 21:54 21 minutes, 54 seconds million uh in in um during this year right. So that's growth pattern. Now how did this happen? Like we said, we have a 22:02 22 minutes, 2 seconds separate team which is which comes from the top competition and the entire team is built in the Middle East and they are growing pretty fast. The subsidiary has 22:11 22 minutes, 11 seconds already been uh completed. The work has been completed. Now there is uh some already some work has gone into uh this 22:21 22 minutes, 21 seconds uh some kind of you know uh uh I would say uh uh manufacturing or some kind of 22:27 22 minutes, 27 seconds value addition that work is going on and the primary purpose of that of any kind of unforeseen situation from anywhere in 22:36 22 minutes, 36 seconds the world like we faced last year we are we will be well poised to uh cater our customers with uh with these kind of 22:44 22 minutes, 44 seconds flexibility So that was the purpose and we are well on track uh for that. So I' I've shared you like the targeted 22:52 22 minutes, 52 seconds numbers and what we are doing there and this work is in progress and when uh there is any further update we'll update you on that. 23:00 23 minutes So and sir with regards to this effect which we have announced. So PCF we are already at 85 89% utilization as what 23:08 23 minutes, 8 seconds you mentioned to the previous participant. Yes. And SCF is somewhere around 7580. 23:14 23 minutes, 14 seconds So uh uh with that understanding I would have thought you must have already decided or thought about or discussing 23:22 23 minutes, 22 seconds about a new PPF line but before a new PPF line we are going ahead and building up a new SCF line almost 30% capacity addition. Mhm. 23:31 23 minutes, 31 seconds So just to understand uh the uh scenario behind this is it because the demand is 23:38 23 minutes, 38 seconds quite robust in terms of SCF and architectural frame which is a part of SCF which is why we have announced this 23:45 23 minutes, 45 seconds SCF expansion prior to going for one more PPF line. 23:50 23 minutes, 50 seconds Yeah see uh I will tell you uh the growth in SCF has been pretty rapid. Of course, PPF is also growing us very 23:58 23 minutes, 58 seconds fast. But next year, see FCF means we are a very well-known brand in India and 24:06 24 minutes, 6 seconds US. Global is a well-known brand for automotive. So you see that growth is always there despite like uh we have hit 24:15 24 minutes, 15 seconds quite strong market uh penetration on that. But at the same time all architectural growth also comes from 24:22 24 minutes, 22 seconds there. And if you see our new initiative which is um you know which are coming from Gerwar Home Solutions which is like 24:30 24 minutes, 30 seconds architectural is in a big uh demand. I can always say that the sky is the limit for architectural business because 24:38 24 minutes, 38 seconds everywhere there is a glass can a film can be put on that glass. In architectural it is it is the word because uh if you see uh the normal sun 24:48 24 minutes, 48 seconds control films uh safety and security films uh the films which are on privacy privacy on demand and finally uh you 24:56 24 minutes, 56 seconds know the uh I can say the uh when you can see uh I mean um uh we make the products which are dual reflective or 25:05 25 minutes, 5 seconds reflective. So you see options are unlimited in architectural segment and we just started that work 2 three years 25:14 25 minutes, 14 seconds back right. So we are growing pretty fast there with ghs on board uh and architectural other brands like we are 25:22 25 minutes, 22 seconds on all airports now railways now and big hospitality chains are already under our contract in last 1 to two years this 25:32 25 minutes, 32 seconds growth we are expecting the fastest we might grow around 25 to 30% as well with the support of ghs and architectural 25:40 25 minutes, 40 seconds business so that's why the need for sun control came first and another thing is sun control capacity gets bigger than 25:48 25 minutes, 48 seconds the ppf when we put a new line that means ppf lines because of its speed and 25:55 25 minutes, 55 seconds microns it it produces roughly 25 lakh square ft in a month whereas sun control 26:01 26 minutes, 1 second film can produce 125 lakh square ft in a month. So what happens is when we put 26:08 26 minutes, 8 seconds sun control plant that means funibility wherever we we are sure that ppf will also go 100% utilization by next year 26:17 26 minutes, 17 seconds but we can do the funible the business which we have done in the past for uh ppf as well in sun control lines. So 26:25 26 minutes, 25 seconds that's the rational behind putting a sun control line ahead of a ppf line. 26:32 26 minutes, 32 seconds Okay. I thought there is something to do with even our one of our large customers who just on yesterday's con call mentioned about the environment changing 26:41 26 minutes, 41 seconds from demand limited to more of capacity limited. Uh that's the uh statement made by one of our large customers in 26:49 26 minutes, 49 seconds yesterday's con call. So maybe we are trying to build capacity somewhere and keeping that in mind. 26:56 26 minutes, 56 seconds No that growth I think uh let me tell you our growth has been phenomenal and uh the large customer may buy because 27:03 27 minutes, 3 seconds see these customers buy sun control as well PPF as well right so sun control is 27:10 27 minutes, 10 seconds see uh let me tell you uh I just answered the first question like 50% of our revenues are from sun control so 27:17 27 minutes, 17 seconds anyway sunontrol is our number one uh like number one uh product and if you see the growth is also the fastest in 27:25 27 minutes, 25 seconds that everything is linked to that right and building a sun control line anybody can say anything but it's it's a one of 27:33 27 minutes, 33 seconds the toughest challenge uh that people have and our lines I can't tell the details but they are so advanced that 27:42 27 minutes, 42 seconds people can't compete with that kind of you know the operations done at one go like they are built by our own team 27:50 27 minutes, 50 seconds there are very unique operations with all of uh that m uh sun control machine which nobody has in the world. So we 27:58 27 minutes, 58 seconds know our sun control business is a unique model which is growing very fast. 28:03 28 minutes, 3 seconds There is no stopping to that and PPF of course is growing very fast for us and with the like previous participant asked 28:10 28 minutes, 10 seconds about anti-dumping and similar many measures are going here middle east and USA and especially direct to consumer is 28:18 28 minutes, 18 seconds one of the first priority in uh PPF. So that growth is unmatched. I didn't say that we will not put another PPF line 28:26 28 minutes, 26 seconds but we are continuously growing in sun control in TPF and of course TPU as a backward integration will have more demand so that will also be decided by 28:35 28 minutes, 35 seconds the company where to move fast but we are on a on a takeoff mode on all three products that's very heartening to know last 28:44 28 minutes, 44 seconds thing on architecture since we didn't mention much about our architecture in the previous calls we had mentioned that we are about to do about 300 crores in 28:51 28 minutes, 51 seconds FI20 26 and that 300 moving to 400 crores in FI27 and further to 500 in FI28. 28:59 28 minutes, 59 seconds Uh now given the changes which has happened in terms of the tariff changes and also your thrust on Middle East do we expect this architect and frames to 29:08 29 minutes, 8 seconds be higher than the number which we have given in the previous call? 29:12 29 minutes, 12 seconds See uh uh it's very difficult to give each numbers ahead. So what I'm saying is like we are quite confident to reach 29:19 29 minutes, 19 seconds 2,500 cr for the coming year and whatever we add into new products like graphic solutions, PDLC's and printable 29:29 29 minutes, 29 seconds uh PPF and all those things this will be definitely on top of that right so the growth which we can and whatever happens cannot happen in in [clears throat] a 29:38 29 minutes, 38 seconds year's time we are building the ground that's what I said the important thing is company's strategy for the future the 29:44 29 minutes, 44 seconds strategy is direct to consumer the strategy is uh building uh stronger new 29:51 29 minutes, 51 seconds product developments uh R&D and a channel which remains there with the help of consumers right all others are 30:00 30 minutes definitely there we are strong in uh I mean B2B B segment we are strong with OES because they like the product they 30:08 30 minutes, 8 seconds like the quality and on much bigger hospitality and other industries including railways and airport Right. 30:16 30 minutes, 16 seconds But our ultimate goal is to penetrate everywhere but it should be the brand should be visible in terms of you know 30:23 30 minutes, 23 seconds uh consumers. So that's the first priority with the digital penetration. 30:28 30 minutes, 28 seconds So I am giving you this uh number of uh 2500 cr plus plus a growth of uh 20% 30:36 30 minutes, 36 seconds caggr which we have done in last four years barring last year. Right? So that will include everything. 30:43 30 minutes, 43 seconds Thank you so much Deepak sir. uh and wishing you all the best for much more success going ahead. Thank you so much. 30:51 30 minutes, 51 seconds Thank you. Thank you very much. Thank you. 30:53 30 minutes, 53 seconds Thank you ladies and gentlemen. In order to ensure that the management will be able to address all the question from the participant. We kindly request you 31:02 31 minutes, 2 seconds to limit your question to two question per participant. If you have a follow-up question, please rejoin the queue. 31:09 31 minutes, 9 seconds Our next question come from the line of Sarah Gupta from Swan Investments. 31:16 31 minutes, 16 seconds Please go ahead. Hello. Am I audible? Yes. Yes sir. 31:23 31 minutes, 23 seconds Are on a very good setup for us. Uh I had a few questions. So firstly I just wanted to understand uh like how is the 31:30 31 minutes, 30 seconds industry dynamics right now like with the war going on in the middle. So how I would 31:37 31 minutes, 37 seconds come uh if we talk about uh from post January and what are they currently? 31:44 31 minutes, 44 seconds Yeah, see uh on the war uh like uh somebody said I will repeat this is not the first war and this won't be probably 31:52 31 minutes, 52 seconds the last war. The world will go like that. We the company if you really see uh we have seen a covid time when we 31:59 31 minutes, 59 seconds really performed well where shipping lines were not available, people were not available but we performed and we guided the company to new heights. Then 32:08 32 minutes, 8 seconds came to the tariff situation. Before that Russia was a big market then there was a conflict and then I said this 32:16 32 minutes, 16 seconds tariff which was the biggest like uh headwinds for us right so now this 32:22 32 minutes, 22 seconds middle east thing has come but let me tell you one thing the big uh the good thing about gervar is that it has got um 32:31 32 minutes, 31 seconds it supplies over 90 countries in the world so when USA is in trouble Europe and eastern Europe helps us when there 32:40 32 minutes, 40 seconds is a issue in some other part of the world the other part has in the Middle East reason whenever there is a problem 32:47 32 minutes, 47 seconds we have like other areas which really perform well because I think somehow the material reaches there but through different roots so we have all and we 32:56 32 minutes, 56 seconds are in touch with our our customers this and we are not feeling any uh you know negative impact I mean it's a supply 33:03 33 minutes, 3 seconds chain is difficult but ultimately business is going as usual there again Even if there is a I mean more trouble 33:12 33 minutes, 12 seconds into that but we are poised to sail through that and in terms of like uh you know our sailings we are uh in the past 33:20 33 minutes, 20 seconds also we have avoided hormones and we have also avoided sway canal uh it takes longer route little 33:28 33 minutes, 28 seconds more on expenses on you know I mean logistics and all but that is only a very small part of our sales like I said 33:38 33 minutes, 38 seconds in our previous conference calls when uh things were very very tough due to tariff situation uh I said that uh the 33:46 33 minutes, 46 seconds company has a moto that we will not lose a single customer whatever it takes because we know it's the that there is 33:54 33 minutes, 54 seconds there will be a brighter time so we held on to that we made our inventories uh to sustain in a way that whenever the 34:02 34 minutes, 2 seconds opportunity comes people can refill the customers can refill their inventories uh to lead uh to to sail through it 34:10 34 minutes, 10 seconds successfully. So same thing with all those thing we always think for future like how we can cater that market in the 34:17 34 minutes, 17 seconds best possible way and in the current situation we see it's not as big as like the last year as big as trouble it was 34:25 34 minutes, 25 seconds last year so uh it is being handled very nicely I can say just to follow up on that like the past 34:34 34 minutes, 34 seconds you did mention that uh uh due to the tariff our inventories are at the port and we are just waiting for the tariff to subside so that we can uh export the 34:44 34 minutes, 44 seconds we can release those inventories. So how is the situation uh from the supplier end right now like what at what position we are in the inventory. 34:53 34 minutes, 53 seconds So uh uh so whatever we said actually that held true and that's why we did a good uh job in the uh in second half of 35:02 35 minutes, 2 seconds February and March we released most of the goods I can say I mean required by the consumer at that time we still have 35:10 35 minutes, 10 seconds a good uh I can say roughly if you talk of the US territory it's around 16 million is already there in transit plus 35:19 35 minutes, 19 seconds warehousing plus we are making more goods for the consumer customer because the demand and the season is coming and it is one of the best seasons which we 35:28 35 minutes, 28 seconds have always uh Q1 and Q2 so I gave you the inventory numbers and uh it's it's good demand cycle going on that's all I 35:37 35 minutes, 37 seconds can say right now okay sir with this uh you mentioned that from 35:44 35 minutes, 44 seconds six phone studios in this year so how big of this segment can it be uh if I see for at least 35:52 35 minutes, 52 seconds three, four years, five years can sorry I was not able to hear you are talking of Gwar home solutions or Gwar or global application studios. 36:01 36 minutes, 1 second No Mr. home I'm basically I'm talking about how garwar home solutions yeah so like we 36:09 36 minutes, 9 seconds said we opened six in a very quick succession and around four to five are already in pipeline due to the time 36:16 36 minutes, 16 seconds schedule we are opening them right uh so by end of this year target is 50 right to open the 50 studios in different 36:25 36 minutes, 25 seconds parts of India right and uh this is definitely a the concept of this is As 36:32 36 minutes, 32 seconds our distributors, dealers are pretty big in size to cater these smaller home buyers, we are opening these studios in 36:40 36 minutes, 40 seconds every uh in neighborhood so that the smaller ticket site job can be done. Of course, it's a higher margin job. All 36:47 36 minutes, 47 seconds right. And this uh the ultimate idea is direct to consumer strategy that fits into our D2C model. direct to consumer 36:54 36 minutes, 54 seconds model where the most of the work will be done uh through uh I mean uh digital uh mode that means the payments and 37:03 37 minutes, 3 seconds ordering and all flows will be digital mode that work is still into uh uh I 37:10 37 minutes, 10 seconds mean making but the uh but the market is really responding well and we are getting great responses from the home 37:17 37 minutes, 17 seconds buyers because this is something new for them. they were never able to get these kind of small ticket uh supplies from us 37:25 37 minutes, 25 seconds and uh I'm very happy when I was in Delhi and Gura region and we opened there I met many customers and they said 37:33 37 minutes, 33 seconds you know these small ticket side business from Gwar which is a big brand name this is helping us and 37:41 37 minutes, 41 seconds we are using lot of influencers to update people about these kind of new offerings and happy to share that we are 37:49 37 minutes, 49 seconds anything outstanding this was from the market on this. 37:53 37 minutes, 53 seconds So that was the plan was the kind of value added product that you made understand like how big this segment can become in 38:02 38 minutes, 2 seconds future like if we see I uh so as I said we just started it's in ninth stages and it's very like 38:10 38 minutes, 10 seconds digital driven business so we expect like by next financial year end we should cross around 200 cr from Gwar 38:19 38 minutes, 19 seconds home solutions plus other uh new products together. Um because these all mostly would be part of Gervari home 38:26 38 minutes, 26 seconds solution and going forward our aim is uh higher than that but at least I can say 38:32 38 minutes, 32 seconds for next financial year FY28 we should cross 200 crores uh business from Gvari 38:39 38 minutes, 39 seconds Home Solutions and plus added new products like PDLC and others and all the good. So thank you so much. 38:50 38 minutes, 50 seconds Thank you. 38:52 38 minutes, 52 seconds Thank you. Our next question come from the line of Akant Pratab Singh from JM Financial Mutual Fund. Please go ahead. 38:59 38 minutes, 59 seconds Uh sir, uh my question is related to refund of carries from the USA government which implemented earlier actually. So what kind of amount we are expecting? 39:10 39 minutes, 10 seconds See uh uh this uh amount is definitely whatever we pay is being refunded but uh 39:18 39 minutes, 18 seconds and we are in touch with authorities also and we have opened the account uh uh but this is like uh I'm I'm not sure 39:28 39 minutes, 28 seconds uh like I cannot guarantee because this is a government m uh matter and uh as 39:34 39 minutes, 34 seconds the the time it comes definitely u uh I mean uh I then only I can confirm about 39:41 39 minutes, 41 seconds that because it's it's something which is accounting related matter but but let me tell you when from 50% tariff we did 39:49 39 minutes, 49 seconds such a great job we only like maintain what we could do in FY25 we we managed that in FY26 as well without tariff I 39:58 39 minutes, 58 seconds think we have a big uh I think big way to go and we are targeting like 25 30% growth there so on that number I'm 40:06 40 minutes, 6 seconds avoiding because it it may not When it comes it's like accounting we would like to be conservative and whatever is in 40:15 40 minutes, 15 seconds our hand we are focusing on that right what is the strategy for the company how big that we we are focusing on something which is in our hand we will not let 40:23 40 minutes, 23 seconds that go like in our hand was not to lose a single customer which we did now this tariff whenever it comes that's great 40:30 40 minutes, 30 seconds and we'll have to uh you know see like on the accounting standards how it is to be put into our books and some of them 40:38 40 minutes, 38 seconds we might have to uh give for the consumers also, right? So, but definitely there will be a positive news on that. 40:46 40 minutes, 46 seconds Okay. And the second question related to this input cost rise. So, there is a significant increase in the raw material 40:52 40 minutes, 52 seconds cost. So, just wanted to know the kind of inventory again we will be having uh are we 41:00 41 minutes like reporting the better margins in the Q1 and how we will be managing this cost uh increase. 41:07 41 minutes, 7 seconds See uh we have like very great agreements with our consumers because uh we are always transparent with them like 41:15 41 minutes, 15 seconds in the during tariff time also we were very transparent with them like uh what should be the number how we will compete into the market. We are not the people 41:23 41 minutes, 23 seconds like if there is a 50% tariff we will put on our consumers and uh or customers and do away. We have always been very uh 41:32 41 minutes, 32 seconds you know understanding uh same way our uh customers are also uh understanding 41:39 41 minutes, 39 seconds because the situation we have a scientific method where we see the correlation between the raw materials 41:47 41 minutes, 47 seconds which is PT and MEG versus our IPD products versus our CPD product. So in all that likelihood we went to the 41:54 41 minutes, 54 seconds market and um discuss with them and we were able to get that kind of increase from our customers in a very healthy and ethical way. 42:04 42 minutes, 4 seconds Okay. Okay sir. And sir in PPF business can you tell what is the proportion between the direct to consumer and B2B? 42:14 42 minutes, 14 seconds So uh you mean uh markets between uh D2C and the the 42:20 42 minutes, 20 seconds uh I mean uh big customers distributor that's what you are asking. 42:26 42 minutes, 26 seconds Yeah. You mentioned B2B as well actually in the Yeah. 42:30 42 minutes, 30 seconds Yeah. Yeah. So you know uh in in D2C it is usually uh I can say 30 40% higher than the 42:38 42 minutes, 38 seconds distributor margin. It depends case to case basis. How do we negotiate? But D2C is always better because then there are no distributors or dealers in between. 42:49 42 minutes, 49 seconds You are directly handling those things. 42:51 42 minutes, 51 seconds But in that the real cost comes off your digital marketing and penetration. But of course the margins are definitely 42:59 42 minutes, 59 seconds 25 30% higher than the distributor margins. 43:04 43 minutes, 4 seconds So revenue front what is I'm sorry to interrupt you sir but you may please rejoin the queue. 43:09 43 minutes, 9 seconds Yeah just last question. revenue share I was looking for sir from the D2 D2C and B2B in the PPF business 43:16 43 minutes, 16 seconds in uh that is let me tell you uh this is just uh we started this campaign maybe two years back with Gervare application 43:25 43 minutes, 25 seconds studios but global application studio is we started like six month back only so as of now I can estimate the D2C 43:33 43 minutes, 33 seconds business is only 10% of overall our revenue in India it is like uh I can say it's like 40% % as high as but together 43:43 43 minutes, 43 seconds with world market I can say it is only 10 to 15% right now right but it's growing very fast and that's the future for us 43:51 43 minutes, 51 seconds okay sir okay thank you sir thank you thank you reminder to all the 43:58 43 minutes, 58 seconds participants kindly limit the question to two question per participant next question comes from the line of Nikl Chri from Toro wealth managers LLP please go ahead Yeah. Uh, hi Deep sir. 44:11 44 minutes, 11 seconds Uh, congratulations on a fantastic end to the year in a despite a challenging environment. Uh, I had two questions. 44:18 44 minutes, 18 seconds Uh, rest of the questions have been answered. In the Q3 call, we had mentioned that we have some uh, partnerships that are going on with the 44:25 44 minutes, 25 seconds Chinese players uh, using our global brand. Any status update on any partnership that we have signed and what could be the outlook with respect to 44:34 44 minutes, 34 seconds these partnerships? And uh in the PPT we have mentioned about uh four OEMs uh onboarded is it in the PPF business is 44:43 44 minutes, 43 seconds it like a OEM like the Mahindra tie up that we did that we had done couple of quarters back uh so answering the second question 44:52 44 minutes, 52 seconds first uh so yes it is the same tie-up with which is with Maidra and Maidra similar because I'm not naming name for 45:00 45 minutes the competitive uh safety for us so we have now four uh in our books and 45:07 45 minutes, 7 seconds another two are already the discussions are going on. So you are right on that and that's how the growth uh into PPF is 45:15 45 minutes, 15 seconds continuously happening in the domestic market. Um so this is uh your second question and first question yes uh the 45:23 45 minutes, 23 seconds discussion uh is uh still on because uh honestly uh after tariff the situation 45:30 45 minutes, 30 seconds changed for us and the order flow increased uh so big in Q3 of course um 45:37 45 minutes, 37 seconds that was like somewhere in February we uh updated you on that so that discussion is still going on because uh 45:44 45 minutes, 44 seconds the some of the agreements are still being discussed because that that would be a long-term partnership. We are still in discussion and we are hopeful that 45:52 45 minutes, 52 seconds that will definitely help us uh in um PPF business uh going forward. It's not 45:59 45 minutes, 59 seconds yet concluded but we are uh we are uh making sure that it goes in the right direction. Got it. Got it. And uh what 46:07 46 minutes, 7 seconds would be the US share in Q4? I guess it was not mentioned in the PPT. uh Middle East you mentioned in one of the uh answers that it is around 15 million 46:16 46 minutes, 16 seconds Middle East and North African region which is around 6% of the revenues. 46:19 46 minutes, 19 seconds What would be the US share for Q4 and FIA? Uh one second. No uh what US? 46:25 46 minutes, 25 seconds Yeah. So it is uh last year it was 45%. It was uh I mean if you talk of 46:33 46 minutes, 33 seconds FY25 it was 48%. Last year because of tariff and all situation it was 45%. 46:41 46 minutes, 41 seconds Got it. Got it. Thank you so much and wish you all the best and thank you very much for encouraging words. 46:50 46 minutes, 50 seconds Thank you. Our next question comes from the line of AC Ram Palanapan from I thought PMS. Please go ahead. 46:59 46 minutes, 59 seconds Uh am I available sir? Yes. 47:03 47 minutes, 3 seconds Uh thank you for the opportunity. My first question is on one of our customer has indicated plan to move toward 47:11 47 minutes, 11 seconds in-house manufacturing of PPL. So how should we think about uh the potential impact on a business over medium-term 47:18 47 minutes, 18 seconds and also uh what is our medium-term goal with global applications to use? 47:26 47 minutes, 26 seconds Yeah. So uh that I mean uh that kind of uh announcement actually 47:33 47 minutes, 33 seconds that has been discussed I think there is no uh direct impact because uh we are not the only uh supplier for them and uh 47:43 47 minutes, 43 seconds whoever you are talking uh I mean they there are others as well so we don't see any challenge in our volumes but at the 47:51 47 minutes, 51 seconds same time we are always working because we always want to go to the market and that's how we are now 40% into D2C 47:59 47 minutes, 59 seconds market in the domestic uh market and overall uh 10 to 15% uh in our uh 48:06 48 minutes, 6 seconds portfolio uh for uh PPF. Uh so for us we don't see any challenge on that. In fact 48:14 48 minutes, 14 seconds uh we are like we are now 85 89% of runnability 85 to 89 and uh we are full 48:21 48 minutes, 21 seconds with uh order books on that. So there is no challenge which we see into that right because u and the second thing is 48:29 48 minutes, 29 seconds our major market is major uh thing is sun control which is 50% of our re revenue generator and that we are 48:36 48 minutes, 36 seconds continuously growing uh even with the stronger uh uh with the stronger strength going 48:43 48 minutes, 43 seconds forward right so that is there and when you talk up about uh global application studio uh that are 48:51 48 minutes, 51 seconds like in USA we and Middle East. So they are continuously in we have a target for 48:59 48 minutes, 59 seconds both the places like overall we should have at least I mean I can say 50 for uh 49:06 49 minutes, 6 seconds 50 for next one year that's the target which you are keeping for Gwar global application studios uh and they will be 49:15 49 minutes, 15 seconds when we say there will be like currently 10 to 15% uh uh volumes coming from there them GAVA and global application 49:24 49 minutes, 24 seconds studio And we definitely would like to go uh 25% and then 35% as a target going 49:32 49 minutes, 32 seconds forward for our business and that will add our uh that will increase our uh margins. Uh so that's the and second 49:42 49 minutes, 42 seconds thing is the brand uh visibility will increase more and more. 49:47 49 minutes, 47 seconds Got it sir. And uh within the ACF sales in FY 26 uh can we know uh what is the contribution of architectural influence? 50:00 50 minutes Okay. Architectural uh uh uh it is around uh 25% of uh total sun control 50:08 50 minutes, 8 seconds sales but that is growing. I can say 25 to 30% is moving towards that. 50:17 50 minutes, 17 seconds Got you sir. Thank you. Thank you. Thank you. Thank you. 50:24 50 minutes, 24 seconds Our next question come from the line of Riya Mahata from Equitas. Please go ahead. 50:28 50 minutes, 28 seconds Uh thank you for giving me the opportunity and congratulations from good sense of numbers. Uh so my first question is in terms of you are focusing 50:36 50 minutes, 36 seconds that uh Vwari will now become more of a D2C brand etc. So what kind of investments are we doing because um in 50:44 50 minutes, 44 seconds terms of um marketing and all that spend etc. So uh will our margins be lower than the D2B for some time? 50:55 50 minutes, 55 seconds Uh see our strategy is not uh we are not stopping B2B to grow into a D2C right. 51:02 51 minutes, 2 seconds So what is happening this work has been uh we have been doing this work since last one year right where our DT D2C 51:11 51 minutes, 11 seconds focus is increasing and we already did a great marketing campaign last year which was part of the current performance of 51:19 51 minutes, 19 seconds FY26 where our impression were close to 8 cr from u you know meta platforms only 51:28 51 minutes, 28 seconds and apart from that our we revamped all our websites and uh put a new effort uh 51:36 51 minutes, 36 seconds so that uh everybody sees actually what we are doing into the market and uh in Gerwar Home Solutions we are directly 51:44 51 minutes, 44 seconds building a channel which is you can order online these kind of things with our app and our website right these 51:52 51 minutes, 52 seconds efforts definitely we have budgeted uh for this year as well last year we already started spending on that this 51:59 51 minutes, 59 seconds year also we budgeted these kind of things into our uh numbers already. So I can say there is a slight increase in 52:09 52 minutes, 9 seconds our uh marketing uh budget but definitely D2C is going to be 25 to 30% 52:16 52 minutes, 16 seconds higher margin than B2C even for this year and but the volumes for this year is not that great. I think the next year 52:24 52 minutes, 24 seconds it will be even bigger but this numbers of will not change like the more spending on uh branding because we have 52:32 52 minutes, 32 seconds done that as a mix of our business strategy where OEM we are growing right and these hospitality industry all big 52:40 52 minutes, 40 seconds hotel chains are doing great with us and then uh airport authority railways and all those things are helping us to grow 52:48 52 minutes, 48 seconds on all around so that's the strategy for Got it. And in terms of the current results, what would be the currency appreciation in the entire result? 52:59 52 minutes, 59 seconds Impact sorry dollar appreciation impact of dollar appreciation. I I'm guessing the 53:06 53 minutes, 6 seconds constant currency growth see on the currency we definitely get advantage. I won't say 53:13 53 minutes, 13 seconds no on that. But uh you know our raw materials like uh previously asked like uh uh the raw materials PTA and MEG and 53:22 53 minutes, 22 seconds plus uh some of the chemicals and raw materials they are either imported directly or on import parity basis. So I 53:31 53 minutes, 31 seconds can say 45 to 50% impact is definitely narified with that right. So for the balance definitely we take we get an 53:39 53 minutes, 39 seconds advantage of that uh uh exact number can we give do we have some kind of uh on 53:48 53 minutes, 48 seconds that I'm just asking our CFO on that definitely as I said 50% is naturally held because our imports 53:56 53 minutes, 56 seconds import or import parity business is there balance definitely we get advantage of that so 54:04 54 minutes, 4 seconds and in terms Sorry, please go ahead. 54:07 54 minutes, 7 seconds Raw material availability and the pricing currently are we able to pass on the entire incremental 54:15 54 minutes, 15 seconds um raw material price hike. This is for both your traditional business of films as well as the uh PPF and SCF because uh 54:23 54 minutes, 23 seconds uh so maybe two questions availability and uh and ability to pass on the price. 54:30 54 minutes, 30 seconds Uh yes uh I can tell you that uh we have been able uh to pass maximum of it 54:37 54 minutes, 37 seconds because industrial product business is normally uh the consumer are directly affected so we do that so that is already passed on in consumer it takes 54:46 54 minutes, 46 seconds time but with the help of inventory like everybody knows it's no secret that the kind of inventory we get the appreciation and by the time price 54:53 54 minutes, 53 seconds increase comes we are good uh with that so I can say no ne negative impact of that in fact slight positive impact might be there because of that. 55:03 55 minutes, 3 seconds Got it. Uh and my last question would be that uh with the current interest rates going up and inflation also picking up 55:11 55 minutes, 11 seconds in various geographies that you cater to or do you see any impact of demand anywhere or you see people cailing down 55:19 55 minutes, 19 seconds the cost because uh this is not a staple cost and more of a discretionary spend. 55:26 55 minutes, 26 seconds Uh sorry [laughter] can you repeat the question please? uh with the current inflationary scenario 55:33 55 minutes, 33 seconds and interest rates also hiking do you see any impact on demand or do you see any kind of slowdown coming in from any 55:41 55 minutes, 41 seconds places because it's a discretionary spend after all uh I think the kind of segment we are in 55:50 55 minutes, 50 seconds it's not a commodity where people uh do this is really um I mean um uh if you're 55:58 55 minutes, 58 seconds uh referring to kind of global uh you are talking about global warming and this situation. No, no, no. I'm talking 56:06 56 minutes, 6 seconds about inflation and interest rates in the current environment. 56:09 56 minutes, 9 seconds No, so uh honestly uh this uh whatever is happening is happening in the peak 56:16 56 minutes, 16 seconds season that's summer for us and uh in that like uh demand really remains high 56:22 56 minutes, 22 seconds for us in India for like uh 3 months 4 months and in the world it is yet to come. So people have started building 56:30 56 minutes, 30 seconds their thing. So we are not seeing that kind of impact. This might be more can be visible during weak season of Q3. But 56:39 56 minutes, 39 seconds fortunately for us all those thing is happening into the peak season. So we are not seeing the impact as of now. 56:46 56 minutes, 46 seconds you know the demand is pretty high in this season and in fact unfortunately wherever there is a more buildings coming up I can't refer directly but if 56:55 56 minutes, 55 seconds you really see there is lot of uh new construction is going on everywhere including Middle East so that's a good 57:03 57 minutes, 3 seconds opportunity for the company that's why we are focusing more into the Middle East got it uh and in terms of next 57:11 57 minutes, 11 seconds I'm so sorry to interrupt or please join. Thank you. 57:18 57 minutes, 18 seconds And this next question come from the line of Nilles Jen from Astute Investment Management Private Limited. Please go ahead. 57:25 57 minutes, 25 seconds Um hi, thank you for the opportunity. Uh my question was on the TPU line which is going to come up in October. Uh broadly 57:33 57 minutes, 33 seconds wanted to understand largely this is even a backward beginning. Have you identified any other product uh what the 25% which you mentioned we'll be using apart from the PPS? 57:46 57 minutes, 46 seconds Uh uh I mean uh your question is for the new uh oh sorry uh question is for the EPU business right? uh so um like we 57:55 57 minutes, 55 seconds said uh uh it is it can be used 100% in the PPF for the margin improvement but 58:02 58 minutes, 2 seconds uh we have built a new team R&D team which is working on some products and we have identified already uh two products 58:11 58 minutes, 11 seconds where we will start our first foray into uh from the TPU business right one is the automotive product and one is the 58:19 58 minutes, 19 seconds architectural product so with that product uh with with these two products we are definitely uh will start our 58:27 58 minutes, 27 seconds sales which will be like because it's starting in the Q3 of this year so in 3 4 months I think there will be a very 58:34 58 minutes, 34 seconds minimal revenue but we will set targets for the next year so these two products definitely uh we are eyeing on uh from 58:42 58 minutes, 42 seconds the start of the TPU business and if that goes successful then it will be uh uh I mean I say a big big potential and 58:52 58 minutes, 52 seconds Let me tell you about one of the product is being used widely in uh USA and Europe market and not touched uh by 59:01 59 minutes, 1 second anybody in India. So that can be a good product for us in architectural segment from TPU. 59:09 59 minutes, 9 seconds Okay. Um thank you. Um given uh you mentioned you adding capacity on SCS side um what I understand given your 59:17 59 minutes, 17 seconds current utilization is 80%. and it will be fully utilized for this year and the additional capacity is going to come in 59:25 59 minutes, 25 seconds next year which should be close to an additional 20% capacity. Um don't you feel there's a constraint on capacity to 59:33 59 minutes, 33 seconds grow u so you might need to add PPF uh line as well even operating at 90%. Like I gave you 59:41 59 minutes, 41 seconds the example that the growth uh the major growth drivers are both PPF and sun control but D2C business from Gwar Home 59:49 59 minutes, 49 seconds Solutions is growing very fast and the line size of window firmness. So this lamination lies much bigger than the PPF 59:57 59 minutes, 57 seconds right so we can use the fungibility for PPF business definitely because it will also be full and then we will think of 1:00:06 1 hour, 6 seconds how the growth is going. We are conservative in that but we are we know the right capital allocation. So the the 1:00:13 1 hour, 13 seconds decision was between uh PPF and window films and we have taken the decision of window films lamination line because the 1:00:20 1 hour, 20 seconds size is much bigger. It's four times production comes as compared to PPF right because of the thickness and all 1:00:28 1 hour, 28 seconds those things. So we'll use that funibility to make uh more PPF and here the growth of D2C business GHS and 1:00:36 1 hour, 36 seconds architectural which is going very fast will be catered directly from sun control line. So that's the rational behind putting this line. 1:00:45 1 hour, 45 seconds Sure. And just last clarification I'm sorry to interrupt you Mr. Jen but please reach the queue for more question. Thank you. Just last I just want a clarification. 1:00:54 1 hour, 54 seconds Uh yeah just go ahead. uh what what would be the uh standard tariff which we would be paying right now 1:01:03 1 hour, 1 minute, 3 seconds uh total tariff so I'll I'll explain you or um you know uh the original tariff 1:01:10 1 hour, 1 minute, 10 seconds between uh before uh I can say before this administration came was 6.26% to 1:01:17 1 hour, 1 minute, 17 seconds 6%. Right? That was a standard till last year when it went added 10 then added 25 then added 50. So we'll talk of 1:01:25 1 hour, 1 minute, 25 seconds additional tariffs which is only 10% now as compared to 50% last year. Okay. 1:01:32 1 hour, 1 minute, 32 seconds So 6.26 is already there. It was always there but 50 was on top of that. Now only 10 on top of this. 1:01:40 1 hour, 1 minute, 40 seconds Okay. Okay. Thank you so much and all the best. Thank you. 1:01:46 1 hour, 1 minute, 46 seconds Thank you. Our next question comes from the line of Sunil Jan from Nirmal Bank Securities Private Limited. Please go ahead. 1:01:53 1 hour, 1 minute, 53 seconds Yeah, congratulation on good numbers and thanks for uh this opportunity. Uh so my question relate to whatever the sales 1:02:01 1 hour, 2 minutes, 1 second you are doing uh in your own brand. uh whether you are able to pass it on the whole price increase or whole cost 1:02:09 1 hour, 2 minutes, 9 seconds increase because of all these raw material price increases or uh B2B 1:02:14 1 hour, 2 minutes, 14 seconds [music] 1:02:14 1 hour, 2 minutes, 14 seconds you may have some agreement but B2C is that uh happening at a stretch or it will take some time. 1:02:22 1 hour, 2 minutes, 22 seconds No uh actually honestly uh we are able to pass that on because if you really 1:02:29 1 hour, 2 minutes, 29 seconds see uh this uh uh when we talk of our product industrial product business there is almost a big correlation I can 1:02:38 1 hour, 2 minutes, 38 seconds say 45 to 50% directly into these raw materials which is because of the crude oil jumping and all those things there 1:02:46 1 hour, 2 minutes, 46 seconds the market reacts pretty quickly and we were able to do that so that was uh number one number two when we talk of our consumer products and PPF business. 1:02:55 1 hour, 2 minutes, 55 seconds PPA business is mainly driven by TPU and NSAs and all those things. There the increase was not that big because they are not directly linked to crude right. 1:03:05 1 hour, 3 minutes, 5 seconds So there the increase was minimal but still we were able to uh take our price increase there. Now the third factor is 1:03:14 1 hour, 3 minutes, 14 seconds sun control business which is based on uh polyester. Uh there the impact of overall whatever if 100 rupees is 1:03:22 1 hour, 3 minutes, 22 seconds increased is only 10 rupees on the polyester film because rest of the components are high value addition on 1:03:30 1 hour, 3 minutes, 30 seconds coatings on edesses on nano dispersion and all those things. there we have seen that correlation going to like between 1:03:39 1 hour, 3 minutes, 39 seconds um I can say of uh approximately 10 12 or 15% even and there calibrately uh we were able to 1:03:48 1 hour, 3 minutes, 48 seconds take advantage of uh that uh sorry we were able to take the price increase uh on a different different uh situation from different customers. 1:03:57 1 hour, 3 minutes, 57 seconds So out of the total sales uh how much is uh we are selling in our own brand like Gervare and Global. 1:04:05 1 hour, 4 minutes, 5 seconds So uh if we see uh roughly 55% come goes into own gware brands and uh 1:04:15 1 hour, 4 minutes, 15 seconds gwar or global I mean our brands and uh roughly 40 to 45% goes into the private 1:04:23 1 hour, 4 minutes, 23 seconds labels and uh that may be like you know direct private labels or neutral labels. 1:04:30 1 hour, 4 minutes, 30 seconds Okay. And so last question relate to uh the uh coming uh quarter. See last year 1:04:37 1 hour, 4 minutes, 37 seconds Q1 was uh impacted because of the seasonal rain and also duty which came up in the US. Uh generally you said that 1:04:46 1 hour, 4 minutes, 46 seconds Q1 is a strong seasonal quarter. Uh but if you see last year there was a substantial decline from Q4 to Q1. uh uh 1:04:54 1 hour, 4 minutes, 54 seconds so uh generally Q1 is softer than Q4 or it's uh equal or better than Q4. 1:05:01 1 hour, 5 minutes, 1 second Sir, you answered the question. S we say Q1 is the strongest because of the seasonal uh you know uh the our major 1:05:10 1 hour, 5 minutes, 10 seconds market is export. So for exports it's like uh June, July, August, September these are the strongest season in US and 1:05:18 1 hour, 5 minutes, 18 seconds Europe. Right? So in such situation this the I can say April May that is Q1 1:05:26 1 hour, 5 minutes, 26 seconds is the right time for the ordering from us. So that's why it is always a strong season and in India this is like up to 1:05:33 1 hour, 5 minutes, 33 seconds June is the strong season uh because of heat comes that uh season and then rain comes right. So last year the situation 1:05:42 1 hour, 5 minutes, 42 seconds this did not happen. There were two things. One domestic market the rain started coming in the month of April and also and beginning of May and it never 1:05:51 1 hour, 5 minutes, 51 seconds stopped it continued till the monsoon last year and also the tariff situation made it very uncertain in US for the 1:05:59 1 hour, 5 minutes, 59 seconds ordering and everything right so in this year we don't see that challenge so you answered your question sir on your own 1:06:06 1 hour, 6 minutes, 6 seconds okay just was confirming so uh India sales last but you may please join yeah okay fine Please limit question to Yep. Thank you. 1:06:17 1 hour, 6 minutes, 17 seconds Reminder to all the participant please limit the question to two question only. Thank you. 1:06:24 1 hour, 6 minutes, 24 seconds Our next question come from the line of Jan from AN as well. Please go ahead. 1:06:31 1 hour, 6 minutes, 31 seconds Hi sir, thanks for giving this opportunity and congrats uh on a great set of numbers. [snorts] So uh my first 1:06:38 1 hour, 6 minutes, 38 seconds question is on the SCS the new capex. So how much of this would be for the uh automative part and how much of this 1:06:47 1 hour, 6 minutes, 47 seconds would be for the home solution the sales that you expecting on this capex sir and what would be uh the you know uh the asset turnover from this sir. 1:06:57 1 hour, 6 minutes, 57 seconds Okay. So um on the new capeex see garware uh let me tell you this overall 1:07:06 1 hour, 7 minutes, 6 seconds this addition is uh roughly 30% of capacity addition right so right 1:07:13 1 hour, 7 minutes, 13 seconds uh if we see ghs we don't see like from this plant how much it will go into which product line uh I'll be very 1:07:21 1 hour, 7 minutes, 21 seconds honest with you when we put the line we put the line based on what sale increase we are seeing that is what is the CAGGR 1:07:28 1 hour, 7 minutes, 28 seconds where we are going to grow and where I should need this capacity. So based on that current 75 to 80 75 to 80% will almost finish in by Q2 of next year. 1:07:41 1 hour, 7 minutes, 41 seconds That's was the estimate. Of course we can do some bottlenecking on the old plants and we will we will not lose any sales because 1:07:48 1 hour, 7 minutes, 48 seconds of that. So that's the reason to put the new plant. Now GHS we have a separate target where we are talking um because 1:07:56 1 hour, 7 minutes, 56 seconds the volume won't be great like imagine a home I'll give you some number like if you really see we uh our distribute or 1:08:05 1 hour, 8 minutes, 5 seconds dealers the the second guy distributor buys like five seven lakh square feet in a month and a dealer buys maybe 50,000 1:08:13 1 hour, 8 minutes, 13 seconds square ft or one lakh square but a home buyer needs like 50 square ft or 70 square ft. So that demand we can cater 1:08:22 1 hour, 8 minutes, 22 seconds uh the idea to do that to reach every home means to make that even if that business goes to 20 lakh square ft which 1:08:29 1 hour, 8 minutes, 29 seconds is not even uh 7 8% of our business but we will be catering a big of the country and the revenue generation can happen uh 1:08:39 1 hour, 8 minutes, 39 seconds anywhere between 50 cr for one year and the next year around 200 cr with all the PDLC's and everything. So but that is uh 1:08:47 1 hour, 8 minutes, 47 seconds the idea that to make the brand present everywhere and at the same time increase the sales uh from different different 1:08:54 1 hour, 8 minutes, 54 seconds channels right because uh if you really see u the company uh when we were doing only IPD and CPD in sun control sun and 1:09:04 1 hour, 9 minutes, 4 seconds IPD business our revenues used to be 750 800 cr then we strategically increase the CPD business uh towards uh 1:09:13 1 hour, 9 minutes, 13 seconds architectural business then we went to uh 1,300 cr right then we added this PPL business and along with the growth in 1:09:22 1 hour, 9 minutes, 22 seconds architectural and normal sun control business we reached a level of 1,600 cr in FY24 right and then with the growth 1:09:31 1 hour, 9 minutes, 31 seconds in these two new lines coming and everything we reached 2,100 cr last year so the idea is our products when we 1:09:39 1 hour, 9 minutes, 39 seconds increase the product basket it helps us because when we were not doing PPF many customers were not coming only for sun control because it's a basket order. Now 1:09:48 1 hour, 9 minutes, 48 seconds we are doing sun control for automotive, we are doing sun control for architectural, we are doing sun control 1:09:55 1 hour, 9 minutes, 55 seconds for safety, security, decoration uh and dual reflection and then we are talking 1:10:02 1 hour, 10 minutes, 2 seconds of now architectural in the home solutions. Then we are adding TPU for architectural and automotive. So we are continuously increasing our segment. 1:10:13 1 hour, 10 minutes, 13 seconds Each segment even if adds 100 to 200 cr value that will drive our next uh growth 1:10:20 1 hour, 10 minutes, 20 seconds or to 2,500 3,000 cr in uh like this year and next year. So that's that's where we are moving 1:10:28 1 hour, 10 minutes, 28 seconds right. So, so just to follow up, so when you say architectural, so uh so help me understand on the architectural side, 1:10:35 1 hour, 10 minutes, 35 seconds you know, what is the addressable market for us? I mean, I'm so sure we have chocked out an internal plan for us that, you know, 1:10:43 1 hour, 10 minutes, 43 seconds what is the most attractive products for us in the architectural? What geography looks most attractive for us? And help me understand. And I know it's a very 1:10:52 1 hour, 10 minutes, 52 seconds basic question that I'm asking uh but home solution what I understand is a subset in architectural right? 1:11:00 1 hour, 11 minutes Yes. So, so you know what is the strategy like which geography which product what is the revenue potential and what kind of margins that we have 1:11:08 1 hour, 11 minutes, 8 seconds internally chopped out for us for next 2 three years you know if you can help me understand that sir see uh that will be like I'll answer the 1:11:17 1 hour, 11 minutes, 17 seconds question in a strategic way because if I give the numbers margins and everything so the people who are just eyeing on 1:11:25 1 hour, 11 minutes, 25 seconds these things will definitely because that's that's we work Everybody works with a strategy right so we have a in 1:11:34 1 hour, 11 minutes, 34 seconds place now to answer your question I I'll give you in a broad level like there is a brick market potential in USA where we 1:11:43 1 hour, 11 minutes, 43 seconds have like made a team from or one of the number one competition in in USA second biggest market or I can say fastest 1:11:51 1 hour, 11 minutes, 51 seconds growing market even uh more than USA is the Middle East because if you see it's it's al ideal market for sun control 1:12:01 1 hour, 12 minutes, 1 second business because uh there is lot of sun and there is hardly any there is no rain and there is hardly any wind right and 1:12:09 1 hour, 12 minutes, 9 seconds the maximum development is happening so that's why two years back we took a call we made a strong team there and the team 1:12:18 1 hour, 12 minutes, 18 seconds now working I can say that proudly that one of the segment of Dubai mall is also done by us so that's the quality of our 1:12:25 1 hour, 12 minutes, 25 seconds product but it was missing the kind of uh you know the team which goes which has got relation which has got that kind of drive. Uh so we have done that and 1:12:34 1 hour, 12 minutes, 34 seconds now with that subsidiary there which is directly working with all because uh if we are there we can directly add value 1:12:42 1 hour, 12 minutes, 42 seconds to our sales team there. I mean they can definitely take advantage of a local thing right so that market is now you 1:12:50 1 hour, 12 minutes, 50 seconds can see the growth of we see a middle east and north Africa region is like something a big target for us. Then coming back to India again we made a 1:12:58 1 hour, 12 minutes, 58 seconds team which was no focus on to automotive is fully dedicated for architectural business. Now architectural business we 1:13:06 1 hour, 13 minutes, 6 seconds already did railways, airports, all airports, railways and then best hospitality chains are working with us 1:13:14 1 hour, 13 minutes, 14 seconds and also some OE who make like your uh would redesign your entire home bathrooms and everything we have 1:13:21 1 hour, 13 minutes, 21 seconds directly tied up with them. Right now, next thing is these how to cater to the smaller guys and make a brand. Right? If 1:13:28 1 hour, 13 minutes, 28 seconds you go to B2B, they will test your product. They will say forget about it. 1:13:32 1 hour, 13 minutes, 32 seconds I will make my brand. Your product is outstanding. But how do I grow the business of Gerwar or global to the end 1:13:39 1 hour, 13 minutes, 39 seconds consumer. So that's where the Gerwar home solution and Gwar and global application studios come into picture. 1:13:46 1 hour, 13 minutes, 46 seconds Right? The product is great but the name is also great. So there the margin will be like I said will be 30 40% higher 1:13:53 1 hour, 13 minutes, 53 seconds than distributor level and the branding will be there and at the same time uh there the strategy works that there is a 1:14:01 1 hour, 14 minutes, 1 second separate team there is a now the question is uh you are talking of the TAM right now the TAM in this is you can 1:14:09 1 hour, 14 minutes, 9 seconds create I mean we have our targets we know what it is but to tell you there is like we already catering such a big 1:14:16 1 hour, 14 minutes, 16 seconds segment there and fighting with one of the like cheap imports coming from uh China and Korea and at the same time 1:14:25 1 hour, 14 minutes, 25 seconds products imported from USA but again put together everything has not even it's 1:14:32 1 hour, 14 minutes, 32 seconds like I will say tip of the iceberg because people do not know what a architectural product can do for homes 1:14:39 1 hour, 14 minutes, 39 seconds and buildings right even the owners of many hospitality chain they were not aware when I explained them their eyes were like oh really that's the thing But 1:14:48 1 hour, 14 minutes, 48 seconds again uh we go to the basics like we did in ppf. When we entered into ppf market nobody was even aware what a ppf is. We 1:14:56 1 hour, 14 minutes, 56 seconds made that so popular in India. More than 50 participants are there importing product or buying from us and selling it to same 1:15:04 1 hour, 15 minutes, 4 seconds way we are doing into uh this architectural business via Kerware home solutions and we will have the same 1:15:11 1 hour, 15 minutes, 11 seconds strategy guiding people making those campaigns going to have big buildings and putting canopies making them explain 1:15:19 1 hour, 15 minutes, 19 seconds and this will be done all over India and uh in the Middle East. So that's the strategy for us. 1:15:25 1 hour, 15 minutes, 25 seconds Okay. Okay. So in products it's not just sun control right? There are interrupt you ma'am but uh please I'll 1:15:32 1 hour, 15 minutes, 32 seconds just quickly yes that is not only sun control there will be like surface protection films which is for your 1:15:39 1 hour, 15 minutes, 39 seconds furniture which your kitchen sink and everything. Uh other than sun control then safety security films there will be a switchable film on demand that is 1:15:48 1 hour, 15 minutes, 48 seconds called a privacy on demand. you can do uh like make it make it uh opaque, transparent, semi-transparent and so many lots of products are coming into that segment. 1:15:58 1 hour, 15 minutes, 58 seconds Okay. So can I just squeeze in one very small question I wanted to ask in last call also if you allow me. 1:16:06 1 hour, 16 minutes, 6 seconds Yes, please go ahead. 1:16:07 1 hour, 16 minutes, 7 seconds Okay. So we were doing something with one day bat. I just want to just just want to get an update on that. Are we 1:16:14 1 hour, 16 minutes, 14 seconds doing something for one day bat? uh we did during K mea last year we did a full train to avoid uh you know so you know 1:16:24 1 hour, 16 minutes, 24 seconds we are doing thank you okay okay thank you thank you thank you 1:16:33 1 hour, 16 minutes, 33 seconds our next question come from the line of Ankit Gupta from Bamboo Capital please go ahead yeah um thanks for the opportunity and 1:16:41 1 hour, 16 minutes, 41 seconds congratulations for a very set of numbers especially for the entire year we've done a phenomenally well sir. Uh 1:16:49 1 hour, 16 minutes, 49 seconds my first question is on the you know the impact of uh declining an I'm sorry to interrupt you but can you be a little loud your voice? A little louder please. Yes. 1:16:57 1 hour, 16 minutes, 57 seconds Sure sir. My first question is on the uh you know the declining US automotive sales. So if you look at last quarter 1:17:05 1 hour, 17 minutes, 5 seconds and even in the month of April we have seen five six% decline in the US uh new US automotive sales. So what can be its 1:17:13 1 hour, 17 minutes, 13 seconds impact on our uh automotive SCF sales as well as you know on the PPS sales because our uh you know majority of the 1:17:22 1 hour, 17 minutes, 22 seconds business on the SCF as well as on the PPS side comes from US. So if you can elaborate on that and uh you know how it can impact us. 1:17:29 1 hour, 17 minutes, 29 seconds See u u I mean I think that is quite understandable. when the tariff was at peak, we were able to I mean make uh I 1:17:39 1 hour, 17 minutes, 39 seconds mean not lose the customer but in in at the same time uh you know the sales uh were little affected because we were not 1:17:47 1 hour, 17 minutes, 47 seconds able to do it freely with 50% of the tariff right now going forward when uh I mean uh we have like uh we don't see any 1:17:55 1 hour, 17 minutes, 55 seconds such challenge this year in fact we see a growth good growth potential coming from US market now because the real challenge has gone uh from the market. 1:18:06 1 hour, 18 minutes, 6 seconds Sure. Sure. And on uh you know on the PPS side uh we have seen you know a bit of decline in this financial year and 1:18:15 1 hour, 18 minutes, 15 seconds our biggest customer uh on the PPF is uh is also setting up its own manufacturing plant. So uh how do you see our 1:18:23 1 hour, 18 minutes, 23 seconds relationship with them evolving and you know it's a large part of our TPS. 1:18:29 1 hour, 18 minutes, 29 seconds our sales will be impacted when their manufacturing plant comes online. 1:18:35 1 hour, 18 minutes, 35 seconds No, as I said, I mean uh this uh I think there is lot of uh confusion on that, 1:18:41 1 hour, 18 minutes, 41 seconds right? It's uh the we ppf they buy from other sources as well and they got it 1:18:48 1 hour, 18 minutes, 48 seconds they get it manufactured similar excise they might be doing in future. I'm aware of everything but uh can't say here but 1:18:56 1 hour, 18 minutes, 56 seconds at the same time I don't see any impact on our business uh because our growth has been phenomenal our I mean global 1:19:03 1 hour, 19 minutes, 3 seconds and gwari brand we have doubled what we were doing last year and we expect that to grow in a steep skyrocketing in the 1:19:12 1 hour, 19 minutes, 12 seconds coming years so we are not uh bothered with that right because uh their volumes we were not supplying 100% to them 1:19:20 1 hour, 19 minutes, 20 seconds because there are couple of more suppliers as well, right? Uh I know some some of uh this thing looks like that we 1:19:27 1 hour, 19 minutes, 27 seconds are the only supplier or we are like too much dependent on them on PPF. That is not the case. 1:19:34 1 hour, 19 minutes, 34 seconds But our relationship with them will continue. Oh definitely. 1:19:39 1 hour, 19 minutes, 39 seconds No no definitely we are a big like into uh sun control and other business. See it's not easy to change the product 1:19:47 1 hour, 19 minutes, 47 seconds because our product has got a very unique uh uh properties in terms of sun control and let me tell you with I mean 1:19:55 1 hour, 19 minutes, 55 seconds I can tell you with great pride that the product line is uh very different from what others supply the the base nano 1:20:03 1 hour, 20 minutes, 3 seconds dispersion facility and our adhesive technology is very unique and very different [clears throat] and it cannot be changed even if a brand wants to go 1:20:11 1 hour, 20 minutes, 11 seconds for manufacturing and replace it it's not possible because it is something like prevailing uh product and we have 1:20:18 1 hour, 20 minutes, 18 seconds discussed that and we are continuing with our relations that's uh that's what their growth plan uh for the future but 1:20:25 1 hour, 20 minutes, 25 seconds of course um we have our plans and we continue to be in great relationship with each other thank you 1:20:33 1 hour, 20 minutes, 33 seconds thank you thank you question come from the line of vine nandi from headway investments private 1:20:41 1 hour, 20 minutes, 41 seconds limited please go ahead yeah is really good set of numbers in spite of a very very tough year. Uh just 1:20:49 1 hour, 20 minutes, 49 seconds wanted one two questions in short. One is uh how do you see your April volume growth given uh this summer seems to be better than last year. 1:21:00 1 hour, 21 minutes See I think that's a question related to current performance I would like to avoid. I can only say that uh we have already given a guidelines for the year 1:21:09 1 hour, 21 minutes, 9 seconds for 2,500 cr. We will maintain that because I we cannot answer because this is a current ongoing. It will be like 1:21:17 1 hour, 21 minutes, 17 seconds beyond uh the scope of us talking about this right now. 1:21:22 1 hour, 21 minutes, 22 seconds Fine. Fine. I understand that. Uh the the other question was when I look at your uh US uh uh volumes you said around 1:21:30 1 hour, 21 minutes, 30 seconds 45% of your business came from US and uh last year you had said that you had to absorb most of the tariffs because you couldn't pass on and you didn't want to 1:21:38 1 hour, 21 minutes, 38 seconds penalize your customers. In spite of that you have maintained uh your uh margins so that I I just wanted to 1:21:46 1 hour, 21 minutes, 46 seconds understand how could that be achieved with 45% of your business taking higher uh hit on margins. 1:21:54 1 hour, 21 minutes, 54 seconds Yeah. So uh I think we discussed that even each quarter when uh the despite 50% of 50% volume coming from there but 1:22:03 1 hour, 22 minutes, 3 seconds 50% tariff we still maintained because uh we grew on the other geographies quite handsomely at the same time uh we 1:22:11 1 hour, 22 minutes, 11 seconds uh I mean we restricted our sales uh for just to continue without losing customers that means we held our 1:22:19 1 hour, 22 minutes, 19 seconds products in certain special conditions right and then u in in when uh it was uh 1:22:26 1 hour, 22 minutes, 26 seconds available uh the the tariff went low at that time we cleared the goods according to the demand from the customer. So it 1:22:36 1 hour, 22 minutes, 36 seconds was like a very strate strategically and well maintained supply chain where we were we did not flush the material at 1:22:45 1 hour, 22 minutes, 45 seconds the highest tariff. We tried to hold and navigated it through uh at the at the right time, right? And in fact when this 1:22:53 1 hour, 22 minutes, 53 seconds tariff was to come, we made more material and kept there to avoid that tariffs. Uh I mean it was like prior to 1:23:02 1 hour, 23 minutes, 2 seconds when we knew it is going to happen. We built up our inventory there and at the same time we liquidated when it was only 1:23:09 1 hour, 23 minutes, 9 seconds uh I mean it was utmost necessarily uh to be done. we did at that time and whence it was uh the when it went 1:23:18 1 hour, 23 minutes, 18 seconds towards the low tariff and we cleared the road. So this is like uh the strategy which we followed which worked for us. 1:23:25 1 hour, 23 minutes, 25 seconds Yeah, I think it this is a splendid strategy. Uh thanks a lot for your answer and all the best for the current year. Thank you. Thank you very much. 1:23:34 1 hour, 23 minutes, 34 seconds Thank you so much ladies and gentlemen. 1:23:36 1 hour, 23 minutes, 36 seconds Due to the time constraint that was the last question for today. I now have the conference over to the management for the closing remarks. Over to you team. 1:23:44 1 hour, 23 minutes, 44 seconds Uh thank you and I would like to on behalf of Gervare High-Tech Films Limited Management I would like to thank 1:23:52 1 hour, 23 minutes, 52 seconds uh all participants and uh we hope I mean we were able to answer all of your queries and in case of any further 1:24:01 1 hour, 24 minutes, 1 second explanation required you can reach out to our IR team. Um and uh with this uh 1:24:07 1 hour, 24 minutes, 7 seconds thank you very much and have I wish a great year ahead for everyone. Thank you. 1:24:14 1 hour, 24 minutes, 14 seconds Thank you sir. Ladies and gentlemen on behalf of Gwari High Tech Films that concludes this conference. Thank you for joining us and you may now disconnect your lines.