GHCL Textiles Limited — Q3 FY26

GHCL Textiles Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=t9SIW9UDmVM Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the GHCL Textiles Limited Q3 and 9month FI26 earnings conference call hosted by Go India Advisers. 0:13 13 seconds As a reminder, all participant clients will be in the listenonly mode and there will be an opportunity for you to ask questions after the presentation 0:21 21 seconds concludes. Should you need assistance during the call, please signal an operator by pressing star then zero on your touchtone phone. 0:30 30 seconds I now hand the conference over to Mahel Gogia from Go India Advisers. Thank you and over to you ma'am. 0:39 39 seconds Thank you. Good morning one and all. 0:42 42 seconds It's my pleasure to welcome you on behalf of GPL Textiles Limited. Thank you for joining us today for the Q3 and 0:50 50 seconds 9M FY26 earnings call. Today on the call we are joined by Mr. RS Jalan 0:57 57 seconds non-executive director Mr. Raman Chopra non-executive director Mr. Marshall Sonagab CEO Mr. M Persaman CFO and Mr. 1:08 1 minute, 8 seconds Manu Jen senior general manager finance and accounts please note that today's discussion may include certain 1:15 1 minute, 15 seconds forward-looking statements therefore they must be viewed in conjunction with the risks that the company faces I now invite Mr. Marshall to present his 1:24 1 minute, 24 seconds opening remarks after which we will open the floor for Q&A. Over to you sir. 1:31 1 minute, 31 seconds Good morning everyone and a warm welcome to GXL textiles earning conference call for the third quarter ended 31st December 2025. 1:41 1 minute, 41 seconds Our detailed results and investor presentation are available on the stock exchanges. 1:46 1 minute, 46 seconds I will begin with an overview of the operating environment. On the cotton front, the new crop production is projected to be slightly lower at around 1:55 1 minute, 55 seconds 292 lakhs bales versus 300 lakh bales last year. Cumulative cotton arrivals 2:02 2 minutes, 2 seconds for the season have reached 144 lakh bales and increase from 132 lakh bales last year. The overall supply is 2:10 2 minutes, 10 seconds expected to remain comfortable. In terms of consumption, domestic usage has eased to 80 lakh bales compared to 94 lakh 2:19 2 minutes, 19 seconds bales previously. At the end of Q3, spinners held 35 lakh bales while the cotton corporation of India held 64 lakh 2:28 2 minutes, 28 seconds bales. Global cotton prices have remained volatile, particularly new futures due to international trade dynamics. 2:37 2 minutes, 37 seconds Domestic prices have inched upwards and are in the range of 57,000 rupees per candy. Now turning to the demand side, 2:46 2 minutes, 46 seconds global yarn markets continue to face volatility driven by tariff uncertainties. 2:51 2 minutes, 51 seconds While there is no fresh clarity on the US India trade agreement, other markets are opening up with the signing of FTA 2:58 2 minutes, 58 seconds with Europe, New Zealand, Oman and UK earlier. These FTAs will open up duty-free access for India, leveling the 3:05 3 minutes, 5 seconds playing field against global competition and create new avenues for growth across the textile value chain. Despite the 3:13 3 minutes, 13 seconds current difficult times on the demand side, we have ensured maximum utilization of our units and continued our operational excellence journey. 3:23 3 minutes, 23 seconds Next, I want to update you on our strategy and execution. 3:28 3 minutes, 28 seconds Our 25,000 unit spindle 25,000 spindle unit has stabilized remarkably remarkably well. It is currently 3:36 3 minutes, 36 seconds operating at 98% utilization contributing steadily to our volume and efficiency. We are also making strong 3:44 3 minutes, 44 seconds progress in broadening our value added portfolio on our vertical integration road map. 3:50 3 minutes, 50 seconds The installation of our phase 1 knitting capacity comprising 15 machines is currently underway and will be completed in quarter 4 FI26. 4:01 4 minutes, 1 second We'll set up phase 2 expansion in first half of FI27. 4:05 4 minutes, 5 seconds Now turning to our financial performance. Q3 FI26 continue to reflect our operational discipline. Revenue 4:13 4 minutes, 13 seconds stood at rupes 351 crores, EITA at rupees 334 crores and PAT at rupees 13 4:20 4 minutes, 20 seconds crores for the 9 months. FI26 revenue came in at rupees 960 crores up 4:26 4 minutes, 26 seconds by 9% same period last year and EIA came in at 104 crores up by 23% same period 4:33 4 minutes, 33 seconds last year. A key highlight this quarter is the strengthening of our financial profile. In January 26, our credit 4:42 4 minutes, 42 seconds rating was upgraded by care ratings from A minus/ A2 plus to A/ A1 A1 minus. This 4:50 4 minutes, 50 seconds update is a testament to a robust balance sheet, prudent financial management and the confidence that dating agencies have in our business model even in these challenging times. 5:01 5 minutes, 1 second Our focus remains firmly on our strategic priorities, broadening our value added portfolio, enhancing 5:08 5 minutes, 8 seconds operational excellence and strengthening vertical integration. These priorities continue to guide our capital allocation. Our committed investment plans remains on track. 5:20 5 minutes, 20 seconds GCL textile is well positioned to sustain its growth momentum. Thank you for your continued support. We would now be happy to take your questions. 5:31 5 minutes, 31 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask questions may press star and one on your touchstone 5:39 5 minutes, 39 seconds telephone. If you wish to remove yourself from the question, you may press star and two. Participants are requested to use handsets while asking questions. 5:49 5 minutes, 49 seconds Ladies and gentlemen, we will wait for a moment while the question Q assembles. 5:55 5 minutes, 55 seconds To ask questions, please press star and one. 6:03 6 minutes, 3 seconds The first question is from Riddesh Gandhi from Discover Capital. Please go ahead. Yeah. 6:10 6 minutes, 10 seconds Hi sir, just wanted to understand when the increment is like 10 you know the you know megawatt of renewable comes up 6:19 6 minutes, 19 seconds next quarter [clears throat] approximately how much saving should we be expecting from that 6:29 6 minutes, 29 seconds I actually couldn't hear you your voice yeah I'm saying when incremental 6:36 6 minutes, 36 seconds renewable capacity comes up next quarter uh over 10 megawatts about how much the cost savings would we expect from that? 6:48 6 minutes, 48 seconds Okay. So we have two renewable projects which are in sort of uh pipeline. There is a rooftop solar project which is uh 3 6:58 6 minutes, 58 seconds megawatt which will be commissioned by February and there is a 10 megawatt ground solar project which will be done by June 26. 7:07 7 minutes, 7 seconds Both these projects put together the saving would be about 7 to 8 crores. The 3 megawatt uh unit would have a saving 7:15 7 minutes, 15 seconds of about 2 crores and the 10 megawatt unit would have a saving about 6 crores. This is perm. 7:23 7 minutes, 23 seconds Got it sir. So the other question was you know just just given what's happening with pricing of the cotton the 7:31 7 minutes, 31 seconds MSP the uh uh the tid duty free imports being stopped from the January and the 7:39 7 minutes, 39 seconds slight increase in prices. Yeah, you know, uh, given all of these things, if you could just sort of highlight what 7:46 7 minutes, 46 seconds your own outlook is on overall spinning spreads. 7:53 7 minutes, 53 seconds Uh, I think spending spreads in quarter 3 definitely were under pressure and primarily because of two things is that 8:01 8 minutes, 1 second there is no clarity on the demand side, right? It puts a demand side pressure on us and cotton while it was benign uh at 8:09 8 minutes, 9 seconds the beginning of cotton 3 has started to go up. uh with the new crop and procurement by CCI. But I firmly believe 8:16 8 minutes, 16 seconds that I think the worst is over and quarter 3 onwards and we saw green shoots in December itself when sort of 8:23 8 minutes, 23 seconds demand went up. Uh we saw good uh inquiries from export as well and u cotton price more or less is 8:31 8 minutes, 31 seconds stabilizing. what we are sensing is that it is going to stabilize uh and with the demand side uh getting better with all 8:38 8 minutes, 38 seconds your FTAs uh in in in pipeline I think the spread should start to look upwards from quarter 4 onwards 8:47 8 minutes, 47 seconds but the FDA impact won't be seen now I assume right cuz you know by the time the FDA is executed and all of that it's 8:56 8 minutes, 56 seconds still a year away right definitely it's an year away but I think the overall thinking of buyers starts to 9:04 9 minutes, 4 seconds align uh with the FDA. So they would start to look positively towards India as a market right and you would hear 9:12 9 minutes, 12 seconds more conversations going on with European buyers and wherever the FDAs have been signed for a more longerterm agreement and relationships will start to get better. 9:22 9 minutes, 22 seconds Got it. Okay, that's all for me. Thank you all. Thank you. 9:28 9 minutes, 28 seconds The next question is from Raman Ki from Sequent Investments. Please go ahead. 9:35 9 minutes, 35 seconds Uh hello sir, can you hear me? Hello. Lamj, we can hear you. Please go ahead. 9:43 9 minutes, 43 seconds Sir, yes sir. some uh on sequential basis uh the revenue from fabric has declined and uh as per the previous 9:52 9 minutes, 52 seconds phone call our guidance was to have a revenue from fabric by 12 to 15% by the 9:59 9 minutes, 59 seconds end of this year. So sir, so can you comment on that and does the sequential decline in the revenue from fabric also 10:08 10 minutes, 8 seconds had an impact on our iida on a quarteronquarter basis our revenue from fabric has actually gone up I think 10:17 10 minutes, 17 seconds last year last quarter our percentage of fabric revenue was about 11% we are at about 11.8 12% right on a 9 month basis also if you see it is about 11%. Right? 10:29 10 minutes, 29 seconds So what we had stated last quarter that a guidance of 12 to 15% of revenue coming from fabric we are we are on 10:36 10 minutes, 36 seconds track of that. So by quarter 4 and the year end you will see we'll be clocking about 12% odds uh as a percentage of fabric revenue. 10:46 10 minutes, 46 seconds Uh coming back to I think the second question on impact on eida uh I don't think fabric had any impact on uh our 10:53 10 minutes, 53 seconds aida for this quarter. Uh so as in from a fabric point of view whatever we have committed we are on track uh for ramping up that volume. 11:03 11 minutes, 3 seconds Uh no sir I I meant the fabric volume. 11:07 11 minutes, 7 seconds So on sequential basis uh the fabric volume has declined. 11:12 11 minutes, 12 seconds Uh see if you if you see on a 9 month basis uh our last year volume was about 11:20 11 minutes, 20 seconds uh both put together right about uh 386 I think in the presentation it is there about 386 tons of fabric and 114 lakh m 11:29 11 minutes, 29 seconds of uh woven fabric. uh compared to that we have significantly improved right we have done about thousand tons of knitted 11:36 11 minutes, 36 seconds fabric and 142 lakh m of woven fabric so you will have to see it on a more 11:44 11 minutes, 44 seconds longerterm basis definitely there will be a quarter to quarter variations but uh on a longer term we are on track of 11:52 11 minutes, 52 seconds ramping up our fabric volume uh so also the sequential decline in the 11:59 11 minutes, 59 seconds margin what can that be active to towards. 12:04 12 minutes, 4 seconds So two reasons primarily uh uh if you uh see our power cost this quarter has been higher compared to last uh primarily 12:12 12 minutes, 12 seconds because of the change in mix of power uh renewable energy proportion uh right generation is lower uh this quarter 12:19 12 minutes, 19 seconds compared to last and the second one is a bit of a compression in the spreads. 12:27 12 minutes, 27 seconds So uh if you can uh provide the what is the uh current domestic cotton yarn prices for the Q3 quarter and what 12:36 12 minutes, 36 seconds what's the current uh cotton domestic cotton prices. 12:42 12 minutes, 42 seconds See I think uh we can talk in terms of spreads because that number we have been giving quarter and quarter uh prices 12:49 12 minutes, 49 seconds will depend a lot on what product we are talking about right and similarly our cotton price will depend a lot on that. 12:55 12 minutes, 55 seconds So spread I think last quarter we were at about 131 rupees per kilo before packing cost. Uh this quarter we are at 13:02 13 minutes, 2 seconds about 128. Our Q3 was 128 rupees per kilo before packing cost. 13:08 13 minutes, 8 seconds And uh currently are you seeing any revival or is it still decreasing? 13:13 13 minutes, 13 seconds Um we are seeing a revival. I would not be able to put a number on how much could it be but definitely we think December onward situation has started to look up. 13:24 13 minutes, 24 seconds unnecessary s and sir uh just uh I just want to understand how much uh do we how much percentage of our total revenue is 13:32 13 minutes, 32 seconds exports and if we can give a uh split between how much are we exporting it to USA and how much are we exporting it to 13:40 13 minutes, 40 seconds EU and on a follow up on that international quantum prices are technically uh are at a lower price than 13:47 13 minutes, 47 seconds Indian cotton uh cotton prices so does this impact our exports any uh by any margin. 13:57 13 minutes, 57 seconds So I think the percentage of exports is also there in our investor presentations which has been uploaded. So for 9 months 14:04 14 minutes, 4 seconds FI26 it's about 9% of our revenue is on exports right uh and I think this last 14:11 14 minutes, 11 seconds year it was about 17% but that was a conscious decision from our end because the realizations were better at least for our academy of products in the 14:19 14 minutes, 19 seconds domestic market. Uh as a follow-up question, you had asked about how global cotton prices being lower affect our 14:25 14 minutes, 25 seconds export potential. Yes. Uh I it does affect but in our uh GNC and textiles case, we are in very sort of customized 14:33 14 minutes, 33 seconds high value added products. Uh for us uh as in the product quality plays a lot of 14:40 14 minutes, 40 seconds role in our ability to export the product. Definitely uh higher cotton prices reduces the margin which would have got if the cotton prices were 14:49 14 minutes, 49 seconds across market understood sir and so my final question is on the netting side you said uh by Q4 14:58 14 minutes, 58 seconds you will your net capacity will be commissioning and you expect 14 to 15% margin so uh are we on track profit and 15:07 15 minutes, 7 seconds can if you can throw some light on how much revenue incremental revenue are you expecting uh in FI27 15:16 15 minutes, 16 seconds and uh will and with respect and also the margins with respect to it right so uh see I think what we are 15:24 15 minutes, 24 seconds saying is that quarter four the machines would be operational but definitely we would need few months for stabiliz stabilization of customers products and 15:33 15 minutes, 33 seconds everything I think from next year onwards like and let's say on FI27 because we are also putting uh sort of a 15:41 15 minutes, 41 seconds number of 40 machines being in house by quarter 1 quarter 2 maximum I think these 40 machines uh uh and the entire 15:48 15 minutes, 48 seconds mini project put together we have said that the total margin will be decorative right in terms of 13 to 14 to 15% is 15:56 15 minutes, 56 seconds where we will be able to get on that so that entire project I think the number will be between 250 to 300 crores at a 16:03 16 minutes, 3 seconds 14% 13 to 14% margin uh so we can do 200 crores by uh in additional 200 crores in FI 27 right? 16:14 16 minutes, 14 seconds No, no. In FI 27 because Minaki as in our new 25,000 spindles has already been operational. Okay. So if you just want 16:22 16 minutes, 22 seconds to talk about what would be my additional top line from the 40 knitting machines which will come up next year and assuming for a full year operation 16:32 16 minutes, 32 seconds it would be about 30 to 40 crores. Uh right. Okay. Understood. Thank you. 16:40 16 minutes, 40 seconds Thank you. 16:42 16 minutes, 42 seconds The next question is from Sarange Gupta from Swan Investments. Please go ahead. 16:50 16 minutes, 50 seconds Yes, thank you sir for the opportunity. 16:52 16 minutes, 52 seconds Uh I have a couple of questions. So uh in this quarter our export contribution has gone up somewhere around 11% if I'm 17:01 17 minutes, 1 second if I'm right which was which used which was 9% last month. So with such uncertaintity in the globe market where 17:09 17 minutes, 9 seconds do we see demand growing up and does that also mean that in a domestic market there is some uh pain that we are taking. 17:21 17 minutes, 21 seconds So yes, I think uh quart uh exports for this quarter have been better than last quarter and our exports are well 17:29 17 minutes, 29 seconds distributed across Bangladesh, Europe, Southeast Asia, East Asia, right? Uh a 17:36 17 minutes, 36 seconds little bit uh in some of Northern African countries once in a while it happens as well. Uh so we are sort of 17:44 17 minutes, 44 seconds seeing uh your question was where do we see the growth coming from? Is that uh is my understanding of your question correct? 17:52 17 minutes, 52 seconds Yes. And also is there some pain in the domestic market? 17:56 17 minutes, 56 seconds Okay. Okay. So two questions. Yes. Uh from an export point of view we definitely see uh demand moving from 18:03 18 minutes, 3 seconds India to some of these other locations let's say primarily Bangladesh and Vietnam right and particularly the US lead demand has started to move so to 18:13 18 minutes, 13 seconds say. So definitely there is some better exports happening from these locations particularly Bangladesh and we saw uh uh 18:22 18 minutes, 22 seconds that a lot in November and December when exports went up. In fact I think India exported about 115,000 tons of uh yan in 18:31 18 minutes, 31 seconds December compared to a usual run rate of about 100,000 tons. So December definitely the entire industry sort of exported a lot more. 18:41 18 minutes, 41 seconds Uh domestic demand uh while it has remained muted but we do not see a large contraction in the domestic demand. 18:49 18 minutes, 49 seconds There are month-on-month variations for sure but largely I think domestic demand has remained the same at least in our case. 19:00 19 minutes Okay. Uh the second one was that you said that our cotton spread were 131 rupees in last quarter came down to 128 19:07 19 minutes, 7 seconds to this quarter. What was the yarn spread this quarter? If it is sequentially down if you can like we can compare it with the last quarter. 19:15 19 minutes, 15 seconds No that is the uh spread right your uh our yarn spread as in yarn minus cotton rice that is about 128 rupees per kilo this quarter. Last quarter was 131. 19:27 19 minutes, 27 seconds No, I am asking like after December like for January and for January how is it shaping up? 19:35 19 minutes, 35 seconds So um it's difficult to give you a number because we are just in the first month but uh I can tell you that it has started to look upwards at least uh 19:44 19 minutes, 44 seconds between December and January things have started to look upwards. 19:48 19 minutes, 48 seconds Okay, that that's good to you. Uh so sir like out of the thousand KX commitment that we have done we already deployed I believe 600 kores till now. 20:00 20 minutes So the rest 400 uh if you can give us a bifocation and by when will we we'll be deploying that? 20:08 20 minutes, 8 seconds So the rest 400 crores we have kept for our vertical integration journey. Uh this would be primarily investment coming in fabric and processing capacities. 20:18 20 minutes, 18 seconds uh most likely between next 2 to 3 years processing we are looking at PMRA park as a location or some other suitable 20:26 20 minutes, 26 seconds locations where it could be put up depending on the execution of those projects uh this investment would also happen but uh our internal number is 20:34 20 minutes, 34 seconds that between next 2 to 3 years entire uh remaining 350 400 crores will be deployed. 20:42 20 minutes, 42 seconds Okay. So uh as you are moving forward towards vertical integration do we have any plans to get into other segments 20:50 20 minutes, 50 seconds also as such as like polyester yarn or maybe garmenting going ahead 20:57 20 minutes, 57 seconds we are into blended yarns right so we are into blended ringspan yarn where we use a lot of these polyester modal 21:06 21 minutes, 6 seconds tensel and other fibers. Uh if your question pertains to filament yans we are we do not have a plan to enter into 21:12 21 minutes, 12 seconds filament yans uh garmenting also as of now we do not have our first port of call to finish our commitment uh of 21:20 21 minutes, 20 seconds thousand cr investment which is up to ready to cut fabric only. 21:26 21 minutes, 26 seconds Okay. So just one last question uh like in the December the uh duties from 21:33 21 minutes, 33 seconds cotton imported cotton was removed and there is first of all is there any new news on that that will it be implemented 21:40 21 minutes, 40 seconds again and if not do we see any impact on the quality of the cotton that we get and or the prices of the cotton candy 21:49 21 minutes, 49 seconds which is which has been stabilized for a quite good time. Can we see a difference in that? 21:57 21 minutes, 57 seconds So there have been representations from the industry and conversations with ministries on extension of duty waiver 22:05 22 minutes, 5 seconds but of course no decision has happened till now and uh duty has been reinstated from 1st of January. 22:13 22 minutes, 13 seconds There is a difference between global cotton prices and domestic cotton prices. uh and that definitely if your raw material is extensive it will have 22:20 22 minutes, 20 seconds an impact on the overall industry as well probably we will see as in the conversations are going we will see when the outcome of those conversations come 22:29 22 minutes, 29 seconds about. Second in terms of overall quality of uh cotton available in the domestic market uh as in the supply 22:38 22 minutes, 38 seconds situation uh because India a lot of Indian spinners imported almost about 3 million uh bales have been imported 22:46 22 minutes, 46 seconds right and India's domestic production itself is going to 292 uh lakh bales so 22:52 22 minutes, 52 seconds on a overall basis I think the supply is comfortable that's what we feel uh quality of course uh because of unseason 23:01 23 minutes, 1 second range which happened. Quality uh concerns are there but we have been able to procure with our relationships uh with the dinners and with our uh 23:09 23 minutes, 9 seconds procurement approach we have been able to secure good quality cotton at least for our company. 23:18 23 minutes, 18 seconds Okay, that's good to hear. So, just one last question if I can squeeze in uh with the expans with the 40 knitting 23:25 23 minutes, 25 seconds machines expansion coming up in H1 F527 out of which 15 has already commission will be commissioning in Q4. How do we 23:34 23 minutes, 34 seconds see our revenue mix shaping up for the next at least 2 to three years? 23:40 23 minutes, 40 seconds Uh sorry, I missed your last part. How do you see Can you just repeat from that part? the revenue mix shaping up for the next two to three years. 23:49 23 minutes, 49 seconds Right. Right. See, I think in uh we have given a vision for last quarter as well and before that also Mr. Jalan has 23:56 23 minutes, 56 seconds stated it. Uh once we complete our vertical integration journey, we will we will still have u uh your sort of yarn 24:05 24 minutes, 5 seconds proportion would be about 40% and the rest will be sold as a processed fabric. 24:09 24 minutes, 9 seconds I think this is the vision we have kept and that is how our revenue mix will also change. 24:18 24 minutes, 18 seconds All right. Well, thank thank you so much and all the rest. Thank you. 24:27 24 minutes, 27 seconds Before we take the next question, a reminder to participants that you may press star and one to join the question queue. 24:36 24 minutes, 36 seconds The next question is from Dvang Vishal from DV Enterprise. Please go ahead. Yeah. Uh thank you for the opportunity. 24:45 24 minutes, 45 seconds Am I audible? Yes. 24:49 24 minutes, 49 seconds Yeah sir. Uh my basic question is if our export is just 10% of the revenue, 24:57 24 minutes, 57 seconds right? Then what what will make it a difference for this FTAs and all? 25:08 25 minutes, 8 seconds So sir I think we are um so uh let us let me just sort of elaborate our customer mix right so we have um large 25:17 25 minutes, 17 seconds part of our production is customized value added goes to strategic customers large buyers in India uh the 10% which 25:26 25 minutes, 26 seconds we export to other countries uh is also highly specialized uh and premium 25:33 25 minutes, 33 seconds product only right So definitely there is a scope of doing better on that that proportion can go let's say last year 25:41 25 minutes, 41 seconds also we were about 17 18%. Right? that proportion can go up to that level and that is where the FDAs will help some of 25:48 25 minutes, 48 seconds the doors where we have not been able to go right and and primarily we are an upstream value player right so we are yan manufacturer so our direct exposure 25:57 25 minutes, 57 seconds uh on exports will be limited particularly to some of these areas like Europe, US or New Zealand for example right primarily it will go to some of 26:06 26 minutes, 6 seconds the countries where conversion happens and they will be exporting so to say if India signs FDA the garmenters who are 26:14 26 minutes, 14 seconds in India will be able to export more and ultimately the benefit will trickle down to us. That is how the FDA are going to help. 26:22 26 minutes, 22 seconds Okay. Uh sir, the next uh can you just uh uh get me on that like what's the net 26:29 26 minutes, 29 seconds depth we have and at what percentage the depth is at? 26:47 26 minutes, 47 seconds Hello. 26:48 26 minutes, 48 seconds I think I think the net debt at this point of a time is around 41 cr. Okay. 26:55 26 minutes, 55 seconds So, and the weight will be roughly around 8 and a half. 27:00 27 minutes Yeah. So, it's very negligible. Sir uh is there any possibility that we can 27:06 27 minutes, 6 seconds grow on the operating profit margin by double digit or high teens? 27:14 27 minutes, 14 seconds Uh uh on a year on year basis you are saying the growth. 27:19 27 minutes, 19 seconds Yeah. Can consider on both the sides because if quarter one or two uh like half of the year has been completed 27:27 27 minutes, 27 seconds right. So like uh is there any possibility like OPM to touch by like 27:33 27 minutes, 33 seconds efficiency uh can we go on a higher side by uh double digit or higher teams? 27:42 27 minutes, 42 seconds I think on a on a e aida basis also we have delivered uh a double-digit growth compared to last year right and on PBT 27:50 27 minutes, 50 seconds basis also if you compare 9 month this year versus last year uh coming back to let's say on a uh uh contribution margin 27:57 27 minutes, 57 seconds basis or maybe on aida basis if operational efficiency can help definitely I think there are three four levers where we continuously work on one 28:06 28 minutes, 6 seconds is how do I make my product better how much of more value added can I do which sort of helps me differentiate from the 28:13 28 minutes, 13 seconds competition. Second is can I reach out to the right set of customers? Can I improve the kind of customers I operate 28:20 28 minutes, 20 seconds with? Enter into more premium categories. The third is that can I improve on my utilization. We currently 28:26 28 minutes, 26 seconds are maintaining about 98% utilization and that uh effort continues to happen on that and how do I sort of make sure 28:34 28 minutes, 34 seconds my power mix gets better and better and where we are investing in our renewable energy. Right? So all of these things are happening. uh and we have actually 28:43 28 minutes, 43 seconds delivered uh double-digit growth on our profitability uh last compared to last year. So I think that e effort uh 28:51 28 minutes, 51 seconds continues to happen. Uh we are hopeful the journey will continue on that right now putting a number that how much will 28:57 28 minutes, 57 seconds be my growth. Uh as in the situation is changing month-on-month quarter and quarter basis particularly on the demand side and cotton side. So it is difficult 29:07 29 minutes, 7 seconds to give you a number but yes I think our efforts are in that direction only. 29:11 29 minutes, 11 seconds Okay as the last question like we are having a very good line of spindles if I'm not wrong it's two 2.5 lakh spindles 29:20 29 minutes, 20 seconds we are having it right and the rotors are there and then the then we are coming up with the knitting plant also 29:27 29 minutes, 27 seconds so can you just uh define the perfect ratio like what's the timeline like is the machine or the plants are older one 29:36 29 minutes, 36 seconds or it's like can use it for the next five 10 years with uh same efficiency. 29:42 29 minutes, 42 seconds Uh so I think uh the question uh so we have uh we do not have very old spendings are every year we have been 29:50 29 minutes, 50 seconds spending money on modernization. So there is a significant modernization capex which has gone in already. We do not see a lot of modernization capex at 29:58 29 minutes, 58 seconds least for the next 3 year to happen. Uh right. So uh whatever money we will be investing henceforth is primarily on expansion only. 30:09 30 minutes, 9 seconds Okay sir, that's fine. That's all from my side. Thank you very much for that. 30:12 30 minutes, 12 seconds Thank you and all the best. All the best for the coming years sir. Thank you. 30:22 30 minutes, 22 seconds Before we take the next question, a request to participants to please limit your questions to two per participant. 30:29 30 minutes, 29 seconds Should you have follow-up questions, we request you to rejoin the queue. 30:33 30 minutes, 33 seconds The next question is from Raj Lakhani who's an individual investor. Please go ahead. 30:39 30 minutes, 39 seconds Yeah, thank you for the opportunity. So I have two questions from my end. So over the next 32 year uh 3 to four year period, how do you see internal yarn 30:47 30 minutes, 47 seconds consumption for the fabric segment? And second question is what are the key levers for RO expansion going forward during the same period? Thank you. 30:56 30 minutes, 56 seconds So on the fabric uh internal yarn consumption uh the 25,000 spindles which we have recently commissioned uh that 31:04 31 minutes, 4 seconds unit has been commissioned as entire uh like end to end from yarn to fabric uh it produces 21.5 to 22 tons per day. I 31:13 31 minutes, 13 seconds think that would get consumed in this 14 knitting machines. For the bubble uh we we sort of utilize a mix of inhouse and 31:22 31 minutes, 22 seconds outside yarn. uh some of the yans which we don't produce I think that gets utilized there as well but overall if you see uh on a net basis probably it 31:31 31 minutes, 31 seconds will be about 40 tons uh per day which will get um at when let's say particularly for next year between 30 to 31:39 31 minutes, 39 seconds 35 tons per day uh would get used uh once this 40 knitting machines and our urban fabric uh current production is happening. 31:49 31 minutes, 49 seconds So out of uh just to sort of clarify again we produce about 130 to 135 tons per day. Uh out of that about 30 to 40 31:59 31 minutes, 59 seconds tons per day would get used in our internal yarn consumption. 32:06 32 minutes, 6 seconds Okay. And the second one like what what are the levers for expansion? 32:10 32 minutes, 10 seconds Yeah. Yeah. Sorry to remind forgot to answer your second question. um for our rosi or maybe roe expansion see first of 32:19 32 minutes, 19 seconds all we believe the normalized eida for spinning industry is about 14 15%. 32:26 32 minutes, 26 seconds uh and and we have actually delivered uh if you see our history for 5 years 7 years I think that is is uh we have 32:33 32 minutes, 33 seconds delivered uh that level of EIDA percentage I think with the demand side getting better we should be able to reach that normalized EITA of uh 14 15% 32:43 32 minutes, 43 seconds which were able which we were able to get on a standalone spinning along with our vertical integration which will be more margin accurative right it is more 32:51 32 minutes, 51 seconds profit maximization which happens on vertical integration I think that will take us to a aida margin of about 16 to 32:58 32 minutes, 58 seconds 18% on a normalized basis. Uh I think that uh lever definitely will help us on uh our profit maximization which will 33:06 33 minutes, 6 seconds lead to your roy improvement. also uh we are working on how do we adjust our working capital can we optimize it better right and I think these two 33:15 33 minutes, 15 seconds primary levers will help us on on uh ensuring we are uh touching about 8 10% roy 33:25 33 minutes, 25 seconds okay okay thank you so much thank you next question is from Arun Chalani from first water capital please 33:34 33 minutes, 34 seconds go ahead hello can you any hello. Hello. 33:43 33 minutes, 43 seconds Yes, sir. I can hear you but not that clearly. Could you speak louder? Sure. One sec. 33:53 33 minutes, 53 seconds Yeah. I want to ask about the cash uh situation. 33:58 33 minutes, 58 seconds Um it seems like you're operating on a very thin level of liquidity. H how are you doing that? business like as of 34:06 34 minutes, 6 seconds September it was 6CR. So how are you managing to to operate as a business with such a low level of cash? 34:16 34 minutes, 16 seconds So Dalani can you or Raman take this question? 34:21 34 minutes, 21 seconds No I think what Arun G you are asking is that how are we managing the the working capital right? Yeah, 34:29 34 minutes, 29 seconds the cash balance is 5 to 6 cr. Then in addition to that we have lot of credit line also with the banks and our working 34:37 34 minutes, 37 seconds capital deployment is already more than uh roughly around 2300 crores. So liquidity wise we don't have any problem 34:44 34 minutes, 44 seconds and like you must have heard to our CEO that uh overall our debt at this point of a time is very thin uh only 41 cr of 34:53 34 minutes, 53 seconds the debt on this this kind of a balance sheet. So therefore the liquidity I don't see any any any kind of a challenge. 35:01 35 minutes, 1 second Yeah. But I mean most businesses don't uh work on such a thing as in like if there's a liquidity squeeze or whatnot 35:10 35 minutes, 10 seconds and lines are drawn there seems to be very little for contingency. No but in our case is other way around. 35:18 35 minutes, 18 seconds We are strongly we have a very strong balance sheet with a very low debts. we have a possibility of uh raising the 35:25 35 minutes, 25 seconds resource uh debt uh at a significant level. Even if we want to go at a one to one level also one is to one also along 35:33 35 minutes, 33 seconds with that uh the kind of a margin what we have at this point what the cash generation what we do uh I think frankly speaking this is one of the strongest 35:42 35 minutes, 42 seconds point of GSCL textile that we have a large cash or the large ability to raise the resources and deploy in the growth 35:50 35 minutes, 50 seconds of the business already saying that 400 cr in the working capital 400 crores is already deployed in the working capital means that and along 35:59 35 minutes, 59 seconds with all other assets and thing like that our debt is only 41 crores. So 400 cr is a liquidity actually. 36:07 36 minutes, 7 seconds Got it. Okay. Okay. That's fine. Thanks a lot. 36:14 36 minutes, 14 seconds Thank you. 36:17 36 minutes, 17 seconds The next question is from Deep Sani from Mana Finance. Please go ahead. Hi. Am I audible? 36:26 36 minutes, 26 seconds Yes. Yes. 36:28 36 minutes, 28 seconds Yeah. Uh continuing from the question which the previous participant had asked about the debt uh about uh how your working capital is being done. I heard 36:36 36 minutes, 36 seconds that you have been using a working capital of about 400 crores. Is that right? 36:42 36 minutes, 42 seconds Yes. The working capital in the business is currently 400 350 400 crores. 36:47 36 minutes, 47 seconds 350 cr and most of it from your credit lines right? 36:51 36 minutes, 51 seconds No not really. We we don't have any credit. Like I said our our net debt is only 41 cr and therefore this bal this 37:00 37 minutes money you can assume that is a the internal money has been deployed in the business right internal money because I I saw the 37:09 37 minutes, 9 seconds interest cost was hardly anything for to you know uh support that kind of a if there is any credit line so net debt is 37:17 37 minutes, 17 seconds only that 41 k yes okay and this cost would remain in the similar levels going forward also 37:26 37 minutes, 26 seconds because we are not doing any capeex we've already done our capeex for the next 3 years right no like what our CEO has just said that 37:33 37 minutes, 33 seconds we have a growth plan like what we have this uh 15 machine we have already kind of a in the process the installation then another 25 m machine needs to be 37:42 37 minutes, 42 seconds installed the another 400 crores of the investment which we just said in the against the,000 cr we have already 37:48 37 minutes, 48 seconds invested something around 650 cr balance 350 50 crores needs to be invested over a period of 3 four years and that kind 37:57 37 minutes, 57 seconds of a some debt increase may happen but in a shorter term if you look at a few quarters from now maybe the interest cost will remain in the range bound. 38:07 38 minutes, 7 seconds Okay. So just want to understand which we have invested such a big amount and uh at such low roe I mean how do you 38:16 38 minutes, 16 seconds feel that you know you getting the right uh return on investments because your ro is in single digit that also lower single digit of around 4%. 38:25 38 minutes, 25 seconds See there are two reason uh on this first and foremost is like you that if you 38:32 38 minutes, 32 seconds look at our AOC ROC is at this point of a time ROC is around 5%. 38:39 38 minutes, 39 seconds Which Mar just said couple of minutes before that normalized IBIDA in a normal 38:47 38 minutes, 47 seconds situation this ROCE should be something around 7 to 8% should happen. Okay. And 38:54 38 minutes, 54 seconds if your debts are on the same position, probably the ROC or ROE probably in the range bound of around 8 to 10%. 39:03 39 minutes, 3 seconds Right? 39:04 39 minutes, 4 seconds No. So when do you see this roe to come to around I'm talking about only about ROE roe to come about uh you know more 39:11 39 minutes, 11 seconds than 8%. Because I mean below 8% it doesn't make sense for us to do business at around three of you know putting so 39:18 39 minutes, 18 seconds much 600 crores into the business rather you put it into a FD and you'll make more money. I mean but that that's I just want to know when the RO you are 39:26 39 minutes, 26 seconds expecting to again uh come back to around 8 more than 8% or in a double digit figure like yeah so like just we said in our 39:35 39 minutes, 35 seconds discussion that over a this business outlook which has been seen now the positive hopefully next few quarters the 39:42 39 minutes, 42 seconds things should start looking up and in a normalized situation this roe of 8 to 10% we will definitely be able to and 39:50 39 minutes, 50 seconds historically we have been achieving this uh 8 to 10% % of the roe. 39:55 39 minutes, 55 seconds You know the textile industry at this point of a time is passing through a headwind and because of this roe of any return on the capital is lower. But in a 40:03 40 minutes, 3 seconds longerterm basis definitely 8 to 10% of the roe is is is achievable. 40:10 40 minutes, 10 seconds How much are we affected from this current uh tariff situation and what do we see that once the EU deal is signed? 40:18 40 minutes, 18 seconds How much uh outlook do we look at? uh I mean how much benefit do we look from the EU exports? 40:26 40 minutes, 26 seconds Mar would you like to respond because you have already said earlier. 40:29 40 minutes, 29 seconds Yeah I think it is not see I think the down cycle is not just because of the dash I think there have been multiple reasons and the down cycle has continued 40:38 40 minutes, 38 seconds I think since 23 24 so to say right and probably that is why the reason the roe roies are down and as Mr. answer 40:47 40 minutes, 47 seconds historically we have been delivering that 8 to 10% of uh roy number we have been impacted and if you see on a 40:55 40 minutes, 55 seconds normalized basis when we are saying we have been achieving 14% while we are at an 8 11% debita definitely there is a drop compared to what a normalized eida 41:03 41 minutes, 3 seconds would be and primarily right now the reason is actually the demand uncertainty so to say once uh some of 41:11 41 minutes, 11 seconds these demand triggers are falling in place I think and once these deals are ratified and everything we definitely would return to this 14 15% AIDA margin 41:20 41 minutes, 20 seconds considering uh the operational excellence we have put in place uh the focus on value added products and uh how 41:27 41 minutes, 27 seconds much premiumness we have brought into our products I think that would get us back to this 14 15% I think it is a time 41:34 41 minutes, 34 seconds when uh textile down cycle looks to be ending true sir but then till that you should 41:42 41 minutes, 42 seconds not do any capex because if point is if you're doing any taking any debt you'll be having you'll be having to take a date around 8 to 10% and for that uh I 41:52 41 minutes, 52 seconds mean 8 to 10% taking the debt and if you're not able to do that roe then I mean it doesn't it just doesn't make uh economical sense and frankly for 8 to 42:02 42 minutes, 2 seconds 10% is not even a rosy number for investors you know there are companies who do 15% roe also so just want to 42:09 42 minutes, 9 seconds understand that you know that whether a company is in line with that kind of a thinking that till we achieve a better ro we will not be putting any 42:19 42 minutes, 19 seconds capex or we are still in line with the cex situation. 42:23 42 minutes, 23 seconds See I think u uh in general we have a confidence on the situation getting better and textile industry coming out 42:31 42 minutes, 31 seconds of down cycle that is primarily the reason why we keep investing and preparing for the good times right of course as in uh in tough times it is 42:40 42 minutes, 40 seconds every price is an opportunity ultimately right so we are utilizing this most of the capex till now has been done from our internal approvals and despite 42:48 42 minutes, 48 seconds investing about 650 crores our debt remains low right we do not significantly our debt to equity uh 42:55 42 minutes, 55 seconds ratio getting higher. Uh we will primarily be able to fund it either through our cash generation or maybe a little bit help from the debt. Right? So 43:03 43 minutes, 3 seconds we believe definitely that the textile industry will get better and the down cycle looks to be ending and we are sort 43:11 43 minutes, 11 seconds of preparing ourselves for the good time so to say and our entire vision of going towards ready to cut fabric is on 43:18 43 minutes, 18 seconds ensuring we are able to deliver this doubledigit roy numbers to our investors and stakeholders. 43:25 43 minutes, 25 seconds How much capacity utilization have we done over all the plants? So we are maintaining 98% capacity utilization 43:32 43 minutes, 32 seconds across all our units now and that kind of demand is still there right we have no problems in our uh sales flow 43:41 43 minutes, 41 seconds we have been able to utilize our capacities maintain our uh FG levels to our desired numbers 43:49 43 minutes, 49 seconds great thank you so much thank you next question is from Sakit Kapoor from 43:57 43 minutes, 57 seconds Kapoor company please go ahead Mr. Sakit Kapoor you may go ahead with 44:06 44 minutes, 6 seconds your question. Yes sir. Namaskar sir and firstly thank you for this opportunity. 44:10 44 minutes, 10 seconds Uh sir sorry sorry for the inconvenience. I I joined late. Uh my question may be repetitive. So kindly uh 44:18 44 minutes, 18 seconds bear with me. Uh sir firstly uh I think so you must have mentioned in your opening remark but uh if you could just 44:25 44 minutes, 25 seconds allude to the factors that has led to the margin compression uh Q on Q uh and 44:32 44 minutes, 32 seconds uh and what according to you are the factors uh uh that have been now negated and we we will be improving on our uh AITA margin going ahead. 44:48 44 minutes, 48 seconds Mar sorry I'm here I was on mute uh Saki on a quarteronquarter basis the 44:58 44 minutes, 58 seconds profitability has dropped primarily for two reasons one uh change in mix of our uh power so renewable energy generation 45:05 45 minutes, 5 seconds is lower uh this quarter and it is a seasonal thing right if you compare uh our power costs last year as well it would be in the similar number uh the 45:14 45 minutes, 14 seconds second reason is primarily what the entire industry is facing on uh spreads getting reduced. I think these are the two reasons why uh our profitability has 45:23 45 minutes, 23 seconds dropped uh this quarter compared to last. U the spreads I think are starting to look upwards. I actually answered this uh in previous question as well 45:32 45 minutes, 32 seconds that uh while our spreads have dropped in quarter 3 uh it has started to look upwards uh December onwards. 45:41 45 minutes, 41 seconds Okay. And thus the uh the volume uh the incremental volume of 25,000 uh spindles 45:47 45 minutes, 47 seconds uh we have utilized the same uh in uh at at the uh at the optimum level for Q3. 45:55 45 minutes, 55 seconds In quarter three the 25,000 spindles achieved the 98% utilization. So we have been able to utilize it completely. 46:04 46 minutes, 4 seconds Okay. And so going ahead uh what would be the uh capacity addition if any for the next next financial uh year and when will that uh be into commercialization? 46:15 46 minutes, 15 seconds Uh Sak we have few projects which are uh in in pipeline right. So we said that we are putting up uh rooftop solar and 46:23 46 minutes, 23 seconds ground solar. We have uh knitting machines uh 15 knitting machines which are under installation now will be commissioned in quarter 4. And we have 46:31 46 minutes, 31 seconds uh phase two of netting machine which is coming up right. So these projects are uh in pipeline already. Going forward we 46:38 46 minutes, 38 seconds have already said that we are going on a vertical integration journey where we will be going up to ready to cut fabric. 46:45 46 minutes, 45 seconds Uh some of the fabric and processing capacities are under discussion as in as and when we finalize it we will announce it. 46:53 46 minutes, 53 seconds So sir going ahead what should be the volume growth uh the next year that that would be anticipating and taking into 47:00 47 minutes account the spread trends currently uh uh uh and and the volume incremental volume expansion we would be on similar 47:08 47 minutes, 8 seconds lines for for the exit of Q4 also the same aspects of uh the margin profile will remain the same or can we see an uptick in the margin? 47:18 47 minutes, 18 seconds Uh four we are uh because uh we saw uh things getting better in December and 47:25 47 minutes, 25 seconds January. We believe uh that quarter 4 margins would get better compared to quarter three. Uh the revenue would be 47:32 47 minutes, 32 seconds similar because most of our units are already running at full capacity. So we do not expect a lot of revenue uh bump 47:40 47 minutes, 40 seconds except for price increases and uh because of that but no volume increase will happen in quarter 4. uh but yes we 47:47 47 minutes, 47 seconds uh we look as in we are based on December and January numbers looks that quarter 4 will be better than quarter 3 47:54 47 minutes, 54 seconds in terms of profitability right sir uh thank you sir and I hope 48:00 48 minutes sir that the ROC part which uh I think so all the participants uh have been 48:07 48 minutes, 7 seconds alluding to including myself uh we should be we should be in a position uh to to uh to exhibit better rather sui 48:16 48 minutes, 16 seconds once as Jalani has mentioned that normal conditions prevail. So if you could just give uh a scenario of how and when we 48:24 48 minutes, 24 seconds will understand that these are the factors that allude to normal normal situations and we going back to those 16 18% AITA margin. 48:35 48 minutes, 35 seconds uh Saki G I think from let's say demand side getting normal things looks to be falling in place with the entire FDA's 48:44 48 minutes, 44 seconds at least getting signed right and probably by next year all of these will get ratified and implemented as well the second part is that on our vertical 48:52 48 minutes, 52 seconds integration journey you we have already said that this knitting machines are going to be done by quarter one next year the 40 knitting machines maximum by 49:01 49 minutes, 1 second first half of next year right and our vertical integration journey remaining on uh expansion of knitting movements and processing uh we will be able to 49:10 49 minutes, 10 seconds complete it in the next two to three years. 49:16 49 minutes, 16 seconds So uh let's say just to answer uh and other participants questions also on rosie I think it will start to look 49:23 49 minutes, 23 seconds upwards uh at minimum in fi 27 and maximum we we will be able to touch it by fi 2829 49:33 49 minutes, 33 seconds correct sir and thank you and all the best to the team sir thank 49:41 49 minutes, 41 seconds you thank Thank you. 49:45 49 minutes, 45 seconds The next question is from Rasham Jane from VBD Asset Managers. Please go ahead. 49:52 49 minutes, 52 seconds Yeah. Hi uh Marshall De. Uh so my question is uh with respect to the uh processing plant which you are planning 50:01 50 minutes, 1 second to put up. Uh so uh this is primarily for knitted gar uh fabric. Am I right? 50:11 50 minutes, 11 seconds So uh we are looking to put up both knitting and woven because we are currently also doing woven fabric and knitted fabric. Uh we will sort of take 50:20 50 minutes, 20 seconds a decision which one to prioritize. I think that conversation we are having internally okay because in weaving then you need to 50:29 50 minutes, 29 seconds buy the fabric from outside because you don't have weaving fabric capacity right? 50:37 50 minutes, 37 seconds uh ration I think uh uh when we go for vertical integration we are looking at both knitting and weaving uh and I think 50:45 50 minutes, 45 seconds depending on how u situation is there we will sort of decide at all which one to prioritize early so to say right but the 50:55 50 minutes, 55 seconds plan remain uh to be in both knitting and weaving so you will put up uh looms as well 51:02 51 minutes, 2 seconds because as of today the whatever little fabric expansion which is happening is primarily the knitting fabric expansion. 51:10 51 minutes, 10 seconds So you have to then put up looms for weaving capacity and along with it you will put processing as well. Am I right? 51:17 51 minutes, 17 seconds Right. Right. 51:20 51 minutes, 20 seconds Okay. Understood. And uh the second question is with respect to this because uh a lot of your yarn may get consumed 51:29 51 minutes, 29 seconds in house once you'll put up this fabric capacity and you will process it. So uh the existing set of customers to whom 51:38 51 minutes, 38 seconds you are selling uh gray yarn right now um they have to then buy from someone 51:45 51 minutes, 45 seconds else. So will you plan YAN capacity also along with your uh forward integration 51:53 51 minutes, 53 seconds projects because uh the set of customers which you will get after 2 years with forward integration will be very 52:02 52 minutes, 2 seconds different from what you are supplying right now. Right? 52:07 52 minutes, 7 seconds I think when when we are fully integrated also a part of our production will be sold as yan right and I think the question that we won't be able to 52:16 52 minutes, 16 seconds service the entire gamut of customers we are able to do now because everything gets sold as yan right so definitely 52:23 52 minutes, 23 seconds there there will be a decision on which one to serve and uh where can we exit so to say 52:29 52 minutes, 29 seconds okay understood so your yan portfolio will become more optimized in terms of margins and meets yes once profitation. 52:39 52 minutes, 39 seconds Yeah, I think it will all be on profit maximization, right? So, wherever you think that uh selling yan is better, you would sort of only do that. 52:49 52 minutes, 49 seconds Understood. Okay. Thanks. That that uh that was my question. Thank you. All the best. 52:56 52 minutes, 56 seconds Thank you. Thank you. 53:01 53 minutes, 1 second The next question is from Karina from SMFS Limited. Please go ahead. Yeah. Hi, thank you for the opportunity. 53:09 53 minutes, 9 seconds I just had one question. What what are the what is the company planning to do with the freehole land of about 209 crs in in its books? 53:20 53 minutes, 20 seconds That that freehole land is for the expansion of uh uh when we get into fabric and probably other things, right? 53:28 53 minutes, 28 seconds So that land is available for our expansion, right? So which is there is no immediate plan to use it as of now. 53:39 53 minutes, 39 seconds So like is there a timeline for this? 53:43 53 minutes, 43 seconds Yeah, I think our vertical integration journey is for next two three years. I think that is what uh we have alluded to earlier. I think that land is available 53:51 53 minutes, 51 seconds for that expansion only. So we are not uh looking at any other immediate use for that land. 54:00 54 minutes Right. Okay. Okay. Thank you. Thank you. 54:06 54 minutes, 6 seconds Thank you. The next question is from Odumar from Smith Limited. Please go ahead. 54:15 54 minutes, 15 seconds Uh my question has been answered sir. 54:17 54 minutes, 17 seconds Thank you for taking Thank you. We'll move to the next question. The next question is from Param Mazumar from Eastern Financers Limited. Please go ahead. 54:28 54 minutes, 28 seconds Yeah. Hi, thanks for the opportunity. uh can can you sir please you know guide me you know what is the total capex amount and how much has already been done and 54:37 54 minutes, 37 seconds how much is left in our uh uh vision what we had given we 54:43 54 minutes, 43 seconds we had planned for 1,000 cr investment uh out of that 650 crores have been 54:49 54 minutes, 49 seconds invested about 350 crores are spending okay okay and uh next is you know our 54:57 54 minutes, 57 seconds raw materials how much do we import cotton Do you at all you know or you know totally it is from domestic only? 55:05 55 minutes, 5 seconds No it is uh it is uh across uh we utilize cotton from India we utilize cotton from Africa, Australia, Brazil, 55:13 55 minutes, 13 seconds US. So it is a well diversified mix of cotton which we use and in percentage terms how would that be you know uh as total percentage you know raw material cost? 55:25 55 minutes, 25 seconds Uh it sort of varies right. So but uh our 65 70% of our cotton is domestic and 55:34 55 minutes, 34 seconds that includes polyester also uh and uh 30% is uh imported. 55:42 55 minutes, 42 seconds Okay. Yeah. Sure. And um you already said that we will not be directly benefited with this EU FDA but we we 55:49 55 minutes, 49 seconds will be indirectly benefited any ballpark numbers you know what can um you know and besides you know our exports has actually gone down which you 55:58 55 minutes, 58 seconds said that it's a strategic decision by the management to focus more on domestic so will uh this uh this whole thing 56:05 56 minutes, 5 seconds change with now FDA's uh although you know it is pretty early but still any anything on these lines 56:14 56 minutes, 14 seconds So see most of the export which you see is direct export as yan right. So uh 56:20 56 minutes, 20 seconds with the FDA we so of course that see on the Europe particularly right the uh import duty on uh yan is only about 5%. 56:31 56 minutes, 31 seconds Right while on garment it is 12%. 56:34 56 minutes, 34 seconds Okay so the government exporters are the primary beneficiaries of this FDA. Okay. Okay. 10 benefit. 56:43 56 minutes, 43 seconds Yeah. Okay. 56:43 56 minutes, 43 seconds Indirect benefit would be much higher uh due to FDA compared to a direct benefit of yan export. 56:50 56 minutes, 50 seconds Okay. Got it sir. Thank you. Thank you very much. Yeah. That will be Thank you very much. That was the last 56:58 56 minutes, 58 seconds question in queue. I would now like to hand the conference over to the management team for closing comments. 57:06 57 minutes, 6 seconds Thank you. Thank you very much. uh uh I just wanted to kind of give you some uh of my thoughts. First and foremost, this 57:13 57 minutes, 13 seconds uh GSL textile of course was a part of the GSCL but has a long history of the performance. 57:20 57 minutes, 20 seconds I just wanted to share the numbers uh in terms of uh the margins of ibida margin in last couple of years in since 2018 57:29 57 minutes, 29 seconds till 20123 the number was range bound of around 15 17 18% kind of a number except in 22 that number was significantly 57:38 57 minutes, 38 seconds higher to 28%. If I take an average of all these uh ibida number these numbers are in the range of around 15 16%. 57:47 57 minutes, 47 seconds 23 onwards the downward t of uh downward trend in the textile industry has been has been uh has been seen. Uh of course 57:56 57 minutes, 56 seconds 22 was a peak period and after that there was a downfall and in 23 our margin IDA margin was 7% went up to 8% 58:05 58 minutes, 5 seconds and in last year it was 10%. And like our CEO has just said this year we are looking at number slightly better and uh 58:13 58 minutes, 13 seconds so one thing which is very clear in our mind is a long-term this business definitely has a possibility of of 15 58:21 58 minutes, 21 seconds 16% of the bida margin and in addition to that the changes which we are doing in terms of uh vertical integration 58:29 58 minutes, 29 seconds surely this number will be moving uh the needle uh from 15 16% to 18 20% kind of a number should 58:37 58 minutes, 37 seconds Number two, I think always I personally believe that you invest in the business when the things are not good so that you are ready when the opportunity comes. 58:47 58 minutes, 47 seconds You can encas that opportunity and you are not left out at the time. The right investment time is always uh the time 58:56 58 minutes, 56 seconds when you have a downward uh you also get an advantage in terms of the uh your capital cost negotiations and things like that. 59:05 59 minutes, 5 seconds And this I have seen even in my other businesses also that uh always when when we have done in the that period we have always got major advantage out of that. 59:14 59 minutes, 14 seconds The second point in this business is that we have a kind of every business has it own strength and and kind of this 59:21 59 minutes, 21 seconds thing in this business ROC of around uh 10%. uh I think considered to be a 59:28 59 minutes, 28 seconds reasonably well uh because of uh the kind of a growth opportunity in business this this business has there are many 59:36 59 minutes, 36 seconds other industries where the ROC if you continuously grow your ROC will be in the range of this kind of a commodity 59:43 59 minutes, 43 seconds industry I'm talking about the third point I just wanted to kind of a highlight here is like our co marel has 59:50 59 minutes, 50 seconds just said that we are definitely looking at this uh scenario of the the bottom is 59:58 59 minutes, 58 seconds already kind of achieved and the things should start looking at from here onwards and some of the logic what I have in my mind I just want to highlight 1:00:07 1 hour, 7 seconds first and foremost yes US and uh India trade has not happened but I personally believe this business moving away from 1:00:15 1 hour, 15 seconds India to the other part of the world I'm seeing a kind of a uh not a big possibility of that happening and region is very simple which are the other 1:00:24 1 hour, 24 seconds country which has the potential of supplying this uh this opportunities. 1:00:29 1 hour, 29 seconds Bangladesh you know how the geopolitical situation in Bangladesh is there. China has a priority now they want to kind of 1:00:36 1 hour, 36 seconds a more on going for value additions and they want to kind of so they are also not having a big opportunity in terms of the uh what you call uh the duty part. 1:00:46 1 hour, 46 seconds China and India has a similar position. 1:00:49 1 hour, 49 seconds Left of this there are only small countries like a Vietnam or or maybe Cambodia and I don't think they have a kind of a big possibilities of of kind 1:00:59 1 hour, 59 seconds of a ramping up the production to to be on the level. The second like uh we very 1:01:06 1 hour, 1 minute, 6 seconds this EU deal or the EU FDA of course it will take some time uh maybe around six to nine months time but this will create 1:01:13 1 hour, 1 minute, 13 seconds definitely a big opportunity for Indian garment manufacturers and ultimately the beneficiary of that will also happen to 1:01:20 1 hour, 1 minute, 20 seconds the to the uh people uh the spinners as well that will definitely happen. The third my understanding is the rupee 1:01:29 1 hour, 1 minute, 29 seconds dollar the way at this point of time is definitely also helping will help the kind of a exporter from the Indian uh 1:01:36 1 hour, 1 minute, 36 seconds space. So overall and the last point I just want to highlight like uh the qu cotton like uh Marshall said the crop 1:01:45 1 hour, 1 minute, 45 seconds side this time is slightly lower than the last years. However, the quality of cotton this time is 1:01:53 1 hour, 1 minute, 53 seconds slightly I would say is even inferior as compared to the last year because of the unseasonal rain and the people who has a 1:02:01 1 hour, 2 minutes, 1 second strong balance sheet who has a better working capital management will be able to secure the cotton at the right time and they will be able to get benefit out 1:02:09 1 hour, 2 minutes, 9 seconds of this uh scenario as well. Overall I personally believe that 26 27 should 1:02:16 1 hour, 2 minutes, 16 seconds definitely be better as compared to what we have been seeing since 2023 24 onwards. 1:02:24 1 hour, 2 minutes, 24 seconds So with the hope that things will normalize and we are taking the right steps in terms of the growth like uh we said we have a very clear vision that we 1:02:33 1 hour, 2 minutes, 33 seconds want to move to the ready to cut fabric and we are moving uh now knitting is already in place some new machines has 1:02:42 1 hour, 2 minutes, 42 seconds to be added we are already actively working with the our uh with the getting the land on a on a pitra park all those 1:02:51 1 hour, 2 minutes, 51 seconds things will definitely make sure that our growth journey continues in this business with this. Thank you for all of you for your support. Uh and we will 1:03:00 1 hour, 3 minutes continue to deliver on on on the on your expectation. Uh of course some there are certain things which are not in our control but there are things which are 1:03:09 1 hour, 3 minutes, 9 seconds in our control. We are definitely uh making sure like our investment into the uh uh in the green portfolio I think had 1:03:18 1 hour, 3 minutes, 18 seconds has really done a remarkable uh cost competitive advantage to us. We are almost around 75% of our power 1:03:26 1 hour, 3 minutes, 26 seconds requirement gets covered from the green energy. All those things the right steps are being taken by the management and we will ensure that we get the benefit out of that. Thank you very much. 1:03:39 1 hour, 3 minutes, 39 seconds Thank you very much. With that we conclude today's conference. Thank you for joining us ladies and gentlemen. You may now disconnect your lines.