GHCL Textiles Ltd — Q4 FY26

GHCL Textiles Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=7fXMro2DnJU Published: 13 days ago

0:01 1 second Ladies and gentlemen, good day and welcome to GHCL Textiles Limited Q4 and FY26 earnings conference call hosted by 0:10 10 seconds Go India Advisers. As a reminder, all participal lines will be in the listenon mode and there will be an opportunity for you to ask questions after the 0:18 18 seconds presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. 0:26 26 seconds Please note that this conference is being recorded. I now hand the conference over to Miss Mahal Goia from Go India Advisers. Thank you and over to you ma'am. 0:37 37 seconds Thank you. Good morning one and all. 0:40 40 seconds It's my pleasure to welcome you on behalf of GCL textiles limited. Thank you for joining us today for the Q4 and 0:47 47 seconds FI26 earnings con call. Today in the call we are joined by Mr. RS Jalan, non-executive director, Mr. Raman Chopra 0:56 56 seconds non-executive detra Mr. Marshall Funam CEO Mr. Emperor Raman CFO and Mr. Manu 1:04 1 minute, 4 seconds Jen senior general manager finance and accounts please note that today's discussion may include certain forward-looking statements therefore 1:12 1 minute, 12 seconds they must be viewed in conjunction with the risks that the company faces I now invite Mr. Marshall to present his opening remarks after which we will open the floor for Q&A. Over to you sir. 1:25 1 minute, 25 seconds Thanks Melan. Good afternoon everyone and a warm welcome to GSPL textiles earning conference call for the fourth 1:32 1 minute, 32 seconds quarter and full year ended March 31st 2026. 1:37 1 minute, 37 seconds Our detailed results and investor presentation are available on the stock exchanges. 1:42 1 minute, 42 seconds Let me begin with the operating environment before turning to our performance and the road ahead. The global backdrop represents a case of cautious optimism. 1:53 1 minute, 53 seconds Challenges remain in terms of ongoing US Iran conflict which has disrupted traditional trade routes resulting in shipment delay and elevated logistics 2:01 2 minutes, 1 second cost. Energy markets are under pressure and higher fuel prices is named on the cost economics of our synthetic portfolio and fabric manufacturing. 2:11 2 minutes, 11 seconds Markets remain volatile and we are monitoring this development closely. 2:16 2 minutes, 16 seconds Despite this external turbulence, there is optimism about the overall market. 2:20 2 minutes, 20 seconds Domestic market conditions improved meaningfully during quarter 4 FI26. 2:26 2 minutes, 26 seconds I am pleased to report that the quarter was a strong month for us across both volume and pricing. Demand strengthened across our knitting and living segments. 2:35 2 minutes, 35 seconds On the cotton front, prices moved upwards, rising from approximately rupees 55,000 per candies in December 25 to around rupees 62,000 currently. 2:47 2 minutes, 47 seconds Global cotton markets have reflected similar trends. 2:53 2 minutes, 53 seconds Importantly, domestic cotton availability remains comfortable for us and overall supply conditions provide reasonable visibility for the year ahead. 3:01 3 minutes, 1 second on trade policy. The resolution of reciprocal tariffs with US and the signing of India, EU, free trade agreement represent meaningful 3:10 3 minutes, 10 seconds structural tailwinds for the Indian textile value chain. As additional FDA with the UK, New Zealand and other 3:16 3 minutes, 16 seconds markets are executed, new export avenues will open up for Indian manufacturers. 3:22 3 minutes, 22 seconds VHC textile is well placed to capture these opportunities. 3:27 3 minutes, 27 seconds Turning to our operations, we have maintained optimum utilization across our units and continue to advance our 3:34 3 minutes, 34 seconds operational excellence agenda. Our new 25,000 spindle unit has stabilized and is operating at optimum utilization. 3:42 3 minutes, 42 seconds We have also successfully completed the installation of initial batch of knitting machines and early customer response has been encouraging. 3:51 3 minutes, 51 seconds Rooftop solar capacity commissioned during FI26 is now contributing to our energy cost efficiency. 3:57 3 minutes, 57 seconds Together these investments represent a meaningful uplift to our productive base and FI27 will be the first whole year in 4:05 4 minutes, 5 seconds which we will realize their complete benefit. 4:08 4 minutes, 8 seconds Our business has delivered robust performance and same is reflected in reported financials. In quarter 4, 4:15 4 minutes, 15 seconds revenue increased to rupees 375 crores up by 31% on year-on-year basis. EIDA 4:22 4 minutes, 22 seconds came in at rupees 52 crores and pack at rupees 28 crores. For the fullear year FI26 4:28 4 minutes, 28 seconds revenue came in at rupees 1335 crores which is an increase of 14% over last year. Also ful year AIDS came in at 4:37 4 minutes, 37 seconds rupes 156 crores which increased significantly by 34% over last year. 4:44 4 minutes, 44 seconds Further our balance sheet remained strong with net debt of rupes 118 crores which represents.1x 4:51 4 minutes, 51 seconds net debt to equity ratio. We made a deliberate and considered decision to increase our cing procurement ahead of 4:58 4 minutes, 58 seconds anticipated price rises. This has resulted in a temporary increase in working capital, but we expect this to translate into a tangible cost advantage 5:07 5 minutes, 7 seconds in the coming quarters as that inventory close to production. In FI27, we plan to install additional knitting machines and 5:15 5 minutes, 15 seconds expand our rooftop solar capacity. I'm also pleased to share that we have received approval for land allocation 5:22 5 minutes, 22 seconds and PMRA textile park in Viragar, Tamil Nadu. 5:26 5 minutes, 26 seconds This is a strategic development for GSKL textile and positions as well for the next phase of scale growth and product 5:34 5 minutes, 34 seconds integration. We'll share more details on our plans for this facility as they develop. 5:41 5 minutes, 41 seconds The momentum from quarter 4 appears to be carrying forward and the current quarter is shaping up well. That said, global macro conditions remain fluid. 5:50 5 minutes, 50 seconds Energy prices are unpredictable and geopolitical development can shift market dynamics quickly. As I said before, we are cautiously optimistic. 6:00 6 minutes Our strategic prior, broadening our value added portfolio, deepening vertical integration, and 6:08 6 minutes, 8 seconds sustaining operational excellence. We are committed to creating long-term value for our shareholders, and we thank you for your continued confidence and support. 6:17 6 minutes, 17 seconds We are now happy to take your questions. 6:21 6 minutes, 21 seconds Thank you very much sir. We will now begin the question and answer session. 6:26 6 minutes, 26 seconds Anyone who wishes to ask a question may press star and one on the touchstone telephone. 6:32 6 minutes, 32 seconds If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. 6:41 6 minutes, 41 seconds Ladies and gentlemen, we'll wait for a moment while the question queue assembles. 6:50 6 minutes, 50 seconds First question is from the line of Redes Ram Gandhi from Discover Capital. Please proceed. 6:57 6 minutes, 57 seconds Hi sir, just congratulations on your numbers. So just wanted to understand a a a little bit as to you know uh have 7:06 7 minutes, 6 seconds spreads in Q part of F27 are they in line or higher than where they were for 7:14 7 minutes, 14 seconds the average of Q4 and just wanted to understand what the unit drivers are of these spreads right now. Is it because 7:22 7 minutes, 22 seconds of the MMF sort of increasing in price because of uh of the three oil prices and uh and the Iran war? 7:33 7 minutes, 33 seconds Yeah. Uh so I believe from quarter 3 to quarter four onwards definitely there is an increase in spread. Uh we see this seems to continue in quarter 1 as well. 7:43 7 minutes, 43 seconds So whatever spread we have received in quarter 4 at least it seems to continue in quarter 1. Beyond that as I said it 7:50 7 minutes, 50 seconds is depending on how the global geopolitical situation evolves there could be an impact over it but at least for quarter one we have a visibility 7:58 7 minutes, 58 seconds that the spread looks to be continuing in terms of drivers for this spread increase primarily I think in quarter 8:05 8 minutes, 5 seconds four we saw a lot of demands both from export markets and domestic markets also in quarter two quarter three the prices 8:14 8 minutes, 14 seconds of cotton were more benign than what they are right now I think these two factors led to a lot spread increase in for us and also in general for the market. 8:24 8 minutes, 24 seconds Understood. So and and the the incremental benefit of our renewable capex will will will it kick in in this quarter or the next quarter? 8:35 8 minutes, 35 seconds So we we did two renewable investments. 8:38 8 minutes, 38 seconds One was 3 megawatt for our solar uh that as we have said in previous house also the incremental benefit would be around 8:46 8 minutes, 46 seconds 2. I think that uh we will realize for the full year. The other uh 10 megawatt investment on ground solar which we are 8:53 8 minutes, 53 seconds doing the expected full year benefit is going to be about 6.5 to 7 cr depending on the generation. Uh this year the commencement will be around July to 9:02 9 minutes, 2 seconds August. So probably we'll get about 7 to 8 months of benefit. Primarily your summer seasons would have gone the benefit would be in the range of about 4 and a half cr is what we can expect. 9:13 9 minutes, 13 seconds Got it. So and and the uh last question was that you know given sort of the 9:20 9 minutes, 20 seconds extremely low leverage you have despite the level of like capex that you have done what is the future plan for like 9:28 9 minutes, 28 seconds deployment of with the free cash flow uh because obviously have an underleveled balance sheet which to an extent might 9:37 9 minutes, 37 seconds might be impacting your roe. So are you guys either looking at at uh some form of buyback even the regulations have 9:44 9 minutes, 44 seconds recently changed or or you know any other like capex that you are looking to do to sort of have the the appropriate the capital structure. 9:56 9 minutes, 56 seconds We are as of now we are not looking at a backup but we are looking to deploy this uh cash what we've been made and also uh 10:04 10 minutes, 4 seconds see earlier we had a plan of about 1,000 crores of investment out of that about 675 crores is already deployed the 10:12 10 minutes, 12 seconds remaining 350 crores odd is spending is to be deployed in next 3 years primarily as I said in the opening remarks also we 10:21 10 minutes, 21 seconds have taken a uh we have received land uh in PMRA park that land itself uh it is about 50 odd acres of land and there 10:30 10 minutes, 30 seconds will be a significant capital investment towards that and as we have said uh in earlier calls also our vision remains to 10:37 10 minutes, 37 seconds become a ready to cut fabric supplier I think the further investment spending on our side about 350 crores is going to be 10:44 10 minutes, 44 seconds more towards fabric and processing okay so in I think most of it will be 10:51 10 minutes, 51 seconds deployed um and and we not looking at buyback right now Okay, understood. So, thank you. That's all from me. Thanks and all the best. 10:59 10 minutes, 59 seconds Thank you. Thank you. 11:04 11 minutes, 4 seconds Next question is from the line of Prejanala from Ilara Capital. Please go ahead. 11:10 11 minutes, 10 seconds Hello. Congratulations on good set of numbers. Just wanted to understand the demand scenario in domestic and in export markets. What is the driving 11:19 11 minutes, 19 seconds factor in both the geographies? uh and um uh what has been the increase in 11:27 11 minutes, 27 seconds prices and spread over uh the last three so that has been realized in this quarter and is yet to be realized in the in Q1. 11:38 11 minutes, 38 seconds Uh so pre if I understood your question correctly you were asking about what was the uh driver behind the demand statements right and the second part is 11:46 11 minutes, 46 seconds on the spreads quarter to quarter moment of spreads correct yes yeah yeah so uh in terms of demand 11:54 11 minutes, 54 seconds statement I think one big factor was the overhang from the US reciprocity tariff which was uh on India I think 12:02 12 minutes, 2 seconds subsequently India US got agreed and and squashed the direct itself right out of 12:09 12 minutes, 9 seconds that u unleashed uh a lot of demand factors uh right and that was main preserved why demand in the US market 12:18 12 minutes, 18 seconds went up and India as you know is primarily dependent on US for a large part of its export so that definitely 12:25 12 minutes, 25 seconds benefited the other part was this uh uh improved market sentiment in the Europe 12:32 12 minutes, 32 seconds part when the FDA got signed so lot of uh inquiries started to come in and demands But uh as in uh demands are 12:40 12 minutes, 40 seconds concretized in that part of the market as well. Even the domestic market has behaved well. So uh before that I think 12:47 12 minutes, 47 seconds there was a lot of demand from China. So in the last quarter there's a lot of yarn demand which came from China as well. So uh which was not there earlier. 12:57 12 minutes, 57 seconds So that also helped u utilize a lot of excess capacity which India has has in 13:04 13 minutes, 4 seconds and last part I think even the domestic markets perform well. So there has been a consistent increase on a quarter and quarter and yearon yearly basis in 13:11 13 minutes, 11 seconds domestic market demand as well. So I think these were some of the reasons why we saw a lot of demand daily on the spread side. Uh I think the spread has 13:20 13 minutes, 20 seconds gone up. Uh just to give you a number in product C was about 123 rupees per unit. 13:26 13 minutes, 26 seconds It has gone up to about 148 rupees per quarter 4. 13:32 13 minutes, 32 seconds Okay. So, uh do you uh are are the purchases from China continuing even now and what would be the reason that China 13:40 13 minutes, 40 seconds is purchasing now? Uh again uh it is not happening earlier any factors that you 13:46 13 minutes, 46 seconds can attribute it to. So I think u we have seen a tapering down of demand since March ending at least in our set 13:55 13 minutes, 55 seconds of uh customers and channel partners we have seen a tapering of demand there. Uh in quarter three ending I think the yam 14:02 14 minutes, 2 seconds prices in India were uh very low compared to the overall scenario. I think that was one reason and second there is an acreage reduction in China 14:11 14 minutes, 11 seconds with respect to cotton. So I think those two factors primarily sort of led to a lot of demand uptake from China but as I 14:19 14 minutes, 19 seconds said uh at least I have seen a tapering down right now. Okay the demand is tapering down from China. 14:26 14 minutes, 26 seconds Okay. And second uh on this uh spread part is the increase in spread fully utilized in Q4 or there is going to be 14:35 14 minutes, 35 seconds some improvement that we can see uh in Q1 as well. 14:41 14 minutes, 41 seconds So at least in Q1 I believe that it will continue what spreads we have received uh in quarter 4 it would continue at 14:49 14 minutes, 49 seconds least in Q1 but beyond that I think a lot will depend on how global situation evolves. A big overhang definitely 14:57 14 minutes, 57 seconds remains on fuel prices and sort of gas availability across uh India market. 15:04 15 minutes, 4 seconds Okay. Are there any disruption at your end with respect to um gas availability 15:11 15 minutes, 11 seconds or labor availability which uh could impact your Q1 numbers? 15:17 15 minutes, 17 seconds Uh we do not utilize gas in our processes. Right? So we do not have a direct impact from gas availability. In 15:24 15 minutes, 24 seconds terms of labor uh we did not of course that remains a challenge uh across the industry but till now we have been able to manage our labor situation very well. 15:35 15 minutes, 35 seconds Understood sir. Thank you sir. Uh and all the best. Thank you. 15:43 15 minutes, 43 seconds Next question is from the line of San Gupta from Swan Investments. Please go ahead. 15:52 15 minutes, 52 seconds Congratulations on a great hoping that we continue on the same I have two questions. Firstly, as you 16:01 16 minutes, 1 second mentioned that the spreads in this quarter were 148 which went up around 25 rupees a kg since the last quarter. So 16:08 16 minutes, 8 seconds was it for the whole quarter or we saw that post in uh B. 16:15 16 minutes, 15 seconds So I think this is an average for the whole quarter. I am not giving you an ending number uh but this is an average for the whole quarter. 16:25 16 minutes, 25 seconds So when you consider an average for the quarter but then the box 16:35 16 minutes, 35 seconds of the spread the number so are you something 16:43 16 minutes, 43 seconds sorry I could not hear you voice sange may you please request you to use 16:48 16 minutes, 48 seconds your handset sir your voice is not clear now it's audible Yes, please go ahead. 16:56 16 minutes, 56 seconds Yeah. So, sir, when you when you look at the SP compared to the Q3 and Q4 the improvement, the gross margin 17:04 17 minutes, 4 seconds improvement is not that significant as compared to the improvement of SP that we have seen the Q3. So, are we missing something out here? 17:14 17 minutes, 14 seconds Um I'm not able to understand why you're saying there is something market 17:24 17 minutes, 24 seconds on the which is 126 to 148 which you indicated you want to increase the clock. 17:37 17 minutes, 37 seconds So I think at an absolute level this is sort of unitized right on an absolute level it will depend a lot on what 17:43 17 minutes, 43 seconds volume was also generated right. So uh in quarter 4 our volume is slightly lesser than quarter three as well. So I 17:51 17 minutes, 51 seconds what I understand is that on a gross margin absolute level the improvement is not as much as it is in your level right on a continuous basis. 18:02 18 minutes, 2 seconds But if you look at again your voice is not clear Mr. 18:09 18 minutes, 9 seconds Sarange but if you look on the overall volume also on the yan chart there is hard has been any drop in the overall volume in the yan there's a decline from 18:18 18 minutes, 18 seconds 10,800 to 10,400 and the numbers look bit on the lower 18:25 18 minutes, 25 seconds end at this point of time the gross margin perspective so basically I'm unable to understand that thing 18:34 18 minutes, 34 seconds hey as as I don't have the percentage number but What I can tell you that our costs have remained more or less similar 18:42 18 minutes, 42 seconds between quarter 3 and quarter 4. So whatever aid thea improvement has happened actually has happened because of improvement in gross margins as well 18:50 18 minutes, 50 seconds on a per kilo basis versus a quantum basis there could be a difference and that uh I do not have read available in this but I can tell you that our margins went up about 10% to 11.7%. 19:02 19 minutes, 2 seconds Right? 19:05 19 minutes, 5 seconds Let me answer this question. If you look at our number uh Q1 Q Q2 basis basically 19:13 19 minutes, 13 seconds the increase in the IBIDA is approximately around 29%. 19:19 19 minutes, 19 seconds So the number which you are talking about the value means it matches this matches okay 123 to 148 this person. 19:27 19 minutes, 27 seconds So if you look at that way the the iida has gone up and if I'm reducing even the one time income which we have that also have 19:35 19 minutes, 35 seconds reduced after that also the increase in the iida is around 29%. 19:40 19 minutes, 40 seconds That is message what master is saying 23 to 148. 19:49 19 minutes, 49 seconds Okay. 19:52 19 minutes, 52 seconds I'll take this offline and offline. We can always give you any clarity on that. We are not missing anything in this. 19:59 19 minutes, 59 seconds Sure. Sure. And second hello. 20:07 20 minutes, 7 seconds Second thing I want to understand now for the full quarter you indicate that the spreads were at 148. Definitely the major benefit came in the month of 20:14 20 minutes, 14 seconds March. So how are these spreads in the starting of I mean in April if you can say something? 20:20 20 minutes, 20 seconds No we actually not seeing good improvement in spreads from December onwards itself. 20:29 20 minutes, 29 seconds In fact in the first two months of quarter three the spreads were very low right. So if you see between quarter two 20:37 20 minutes, 37 seconds and quarter three the situation worsened a lot but the spread at least in our case drop was marginal. Right? That was 20:44 20 minutes, 44 seconds primarily because from from December onwards we started seeing a good uptake and that is what we had also recorded in our statements in our last investor call 20:51 20 minutes, 51 seconds as well that from December onwards we are seeing a good increase in our spread and that is what continued between January February March. Of course there 20:59 20 minutes, 59 seconds was a gradual improvement uh on a month-on-month basis but it is not correct at least in our case that majority improvement came only in March. 21:11 21 minutes, 11 seconds Okay. 21:15 21 minutes, 15 seconds I was just answering your second part of question. Uh so as I said earlier also that in quarter one of SI27 we at least 21:24 21 minutes, 24 seconds from a visibility perspective we are uh there's a high likelihood of this spread of 148 rupees kilo continuing of course 21:32 21 minutes, 32 seconds it can go up but at least on a conservative side we are pretty certain that this will continue. 21:36 21 minutes, 36 seconds I think m this is what you have rightly made in statement on a conservative basis this number at least we are going to maintain. So that means s basically 21:44 21 minutes, 44 seconds what he's saying is there is no possibility that the this rate might increase in the first quarter. 21:52 21 minutes, 52 seconds Sure. So so that's helpful and one last question is on your fabric now definitely the contribution has moved up from 8% to overall 12% in the for the 22:01 22 minutes, 1 second whole year. So how shall we see the contribution of the fabric for FI27 and probably once you deploy entire 375 cr 22:09 22 minutes, 9 seconds for the processing fabrics what will be the contribution by in next 2 to three years. 22:16 22 minutes, 16 seconds So uh definitely fabric has gone up to 12% and that is what we have been saying that we are building a market for this uh for the investment which we will do 22:24 22 minutes, 24 seconds in fabric and processing. Uh this year of course there there will be an increase of this fabric percentage. We are we are targeting almost 15% of our 22:32 22 minutes, 32 seconds revenue to come from fabric. Uh a large part of our native fabrics would be inhouse because 15 machines are already in house and another 25 machines at 22:40 22 minutes, 40 seconds least from quarter 3 onwards we should start receiving. So large part of our knitted fabric will be in house. More on fabric will continue to be on an 22:49 22 minutes, 49 seconds outsource model only. Uh then we have we are completely ready with our ready to cut fabric with processing capacity. Uh 22:56 22 minutes, 56 seconds 40% of the product yarn will continue to be sold as yarn and the rest 60% will be vertically integrated either in form of fabric or in the form of processed fabric. 23:08 23 minutes, 8 seconds Okay. Thank you and I'll be back. Thank you. Thank you. Thank you. 23:16 23 minutes, 16 seconds Next question is from the line of Ardana Jen from 361 Capital. Please proceed. 23:22 23 minutes, 22 seconds Hi, thank you for the opportunity and congratulations on the good set of numbers. Uh I have two questions. uh just wanted to understand that in 23:30 23 minutes, 30 seconds general what are the inventory levels that we maintain uh of cotton and uh given that the cotton prices were 23:38 23 minutes, 38 seconds favorable prior to the 11% import duty again getting re status on January how much inventory were we maintaining 23:46 23 minutes, 46 seconds during that period of time and like how much inventory uh do we have right now of the cotton that we would have 23:54 23 minutes, 54 seconds procured at lower prices the reason I'm asking is that Now if we see the cotton prices have started to inch up right you also mentioned that in your opening 24:02 24 minutes, 2 seconds remarks that from 55,000 per candy it's now to around 62,000 per candy right so how much inventory have we uh you know 24:11 24 minutes, 11 seconds built up so we have sufficient inventory to enable us to continue till the next 24:19 24 minutes, 19 seconds season okay so I think this is what we have been maintaining in between there there would be a replenishment of the 24:26 24 minutes, 26 seconds computer inventory because we know how the next season will be. So there will be a continued investment in or or purchases of cotton but now onwards I 24:34 24 minutes, 34 seconds think our cotton purchases will start to taper down a bit because we took a strategic decision to buy our inventory early and maintain it for the season. 24:42 24 minutes, 42 seconds That is what we have done. 24:46 24 minutes, 46 seconds If you sorry let me give you a specific answer to this. We have approximate around 120 days of inventory on 31st 24:56 24 minutes, 56 seconds March. Okay. So that is almost around four months of inventory. But Marshall rightly said we our now the purchases 25:03 25 minutes, 3 seconds will be tapered down and this four months along with some few purchases we will be uh consuming over the period of uh till November. 25:13 25 minutes, 13 seconds Understood. The second thing I wanted to understand is that given that the spreads have been improving in terms of 25:20 25 minutes, 20 seconds uh you know price absorption at the downstream level have we seen any issue that you know we we would be facing in 25:28 25 minutes, 28 seconds terms of passing those prices on to say the fabric or garment manufacturers because ultimately from demand 25:35 25 minutes, 35 seconds perspective do you think that this kind of increase in the spreads would be easily uh absorbed in the market given 25:43 25 minutes, 43 seconds the kind inflationary situations that we are in would it be sustainable uh the p the pass through of the increase in the 25:51 25 minutes, 51 seconds spreads I think that's a very good question and that is what our risk also is at least 25:58 25 minutes, 58 seconds for quarter one we see it is uh at this cotton uh price levels the spread would continue and the price would continue to 26:05 26 minutes, 5 seconds get absorbed but the big risk is uh particularly from an inflation point of view it has aability so the cost in processing and fabric making would 26:13 26 minutes, 13 seconds continue to rise whether that at at that cost level at which other participants in the value chain would would operate at whether the young prices can continue 26:22 26 minutes, 22 seconds to rise that's a big question mark we don't have a readyate answer right now it is a situation we continue to watch 26:32 26 minutes, 32 seconds uh thank you thank you so much and all the best thank you 26:39 26 minutes, 39 seconds next question is from the line of Rahan say from Trinitra Asset Managers. Please go ahead. 26:49 26 minutes, 49 seconds Good afternoon and thanks for taking my question. Like the majority of questions have been audible, right? 26:57 26 minutes, 57 seconds Yeah, I can hear you but if you could speak a bit louder it will help. 27:00 27 minutes Yeah sure. Uh like my majority of questions have been answered. I just I want a bit clarification regarding your export market. So yeah for your key 27:09 27 minutes, 9 seconds export market like US and Europe. So what has been the Y demand decline or growth percentage in F2 and and what is 27:17 27 minutes, 17 seconds the right movement we are seeing for H2 and F27. 27:21 27 minutes, 21 seconds So on a quarteronquarter basis our exports has increased. So this quarter it was almost about 14% of our top line 27:28 27 minutes, 28 seconds exports. I want to clarify one part in your question. We do not export directly to US. uh we basically give to fabric 27:37 27 minutes, 37 seconds manufacturers who who sell intern to us but we definitely export to Europe uh directly or multiple countries in Europe 27:45 27 minutes, 45 seconds and also Bangladesh. So at least in our priority markets with respect to exports, we have not seen any decline. 27:54 27 minutes, 54 seconds Europe has been on a muted demand basis for almost I think one one and a half years now and probably longer and I 28:01 28 minutes, 1 second think that level of demand is continuing. In between we see a bit of an increase here and there but largely it has remained steady. Uh Bangladesh we 28:10 28 minutes, 10 seconds do not see any any slowdown. uh the employees at least for us remain very strong and even the export data shows that India overall exported a larger 28:19 28 minutes, 19 seconds quantity in quarter four particularly in January the February March numbers are starting to come in but at least in January our exports from India for yan 28:28 28 minutes, 28 seconds were healthy compared to what is the usual average okay 28:35 28 minutes, 35 seconds uh and last one keeping question just wanted to ask like is there any uh margin you want to keep your for coming quarters like two three quarters or a full year. 28:46 28 minutes, 46 seconds So for the full year what we do not uh give exact numbers or guidance but what I can sort of tell you that we expect 28:53 28 minutes, 53 seconds the growth what we have delivered this year to continue it would be near about that level exact number uh it is like 29:00 29 minutes plus - 2% delta sort of thing right but that is what we are expecting it will continue given the situation in geopolitics does not worsen from what it 29:09 29 minutes, 9 seconds is right now and we see a quick closure or a quick resolution on the west Asia conflict which is going on. 29:18 29 minutes, 18 seconds Um, okay. Okay. That's it from my and good luck for your coming quarter. Thank you. 29:25 29 minutes, 25 seconds Thank you. 29:27 29 minutes, 27 seconds Next question is from the line of Lakshmi Naran from Tonga Investments. Please go ahead. 29:34 29 minutes, 34 seconds Thank you. Uh, I just want to there have been any inventory for us in the last uh uh one year. 29:43 29 minutes, 43 seconds Uh no there is no inventory gain to report. We have been at least for the last year maintaining minimum amount of cotton inventory which has since falling 29:51 29 minutes, 51 seconds instantly and even in terms of our FDM there is no inventory 29:58 29 minutes, 58 seconds and uh in terms of our uh consumption of cotton what is the mix of imports and what is the uh Indian cotton we use? 30:09 30 minutes, 9 seconds uh so in mix of Indian and uh imported currency it varies uh but on a on a uh 30:17 30 minutes, 17 seconds at an average level we have almost about 30% of our requirement from export as an imported cent 25 to 30% and rest is all 30:25 30 minutes, 25 seconds domestic and in terms of selling uh to the brands uh what has been the uh you actually you 30:35 30 minutes, 35 seconds know there are two ways of selling one is to agents and there is one is to the brands itself. So uh the yarn selling to 30:42 30 minutes, 42 seconds the banks what was it for the last uh for FI26 and what was it FI25 30:52 30 minutes, 52 seconds we we sell let's say we have a very concentrated portfolio of strategic customers where which consume almost 40 30:59 30 minutes, 59 seconds to 50% of our volume and these are all large the top brands uh beyond that also where it's almost 25 to 30% of people or 31:09 31 minutes, 9 seconds maybe around 30 25% number which is given through bank but through intermediaries or traders but their communication directly with the brand 31:17 31 minutes, 17 seconds between with between brand and DL textile the rest uh 20 25% is through small and medium customers who typically 31:25 31 minutes, 25 seconds would be focused in brands but won't be brands in themselves. 31:30 31 minutes, 30 seconds Got it. And in terms of stimulate what is the current stimul we have because we reported a very high expensation. uh 31:38 31 minutes, 38 seconds what is it and extra spend uh uh when it will get uh in the uh utiliz 31:47 31 minutes, 47 seconds I missed the first part of your question. Can you please repeat? 31:49 31 minutes, 49 seconds What is the current spin blade we are operating? 31:52 31 minutes, 52 seconds Uh so current 25,000 spindles is what we have. Uh the 25,000 spindles which we 32:00 32 minutes sort of commissioned in June is included in this. 32:03 32 minutes, 3 seconds Okay. included it and and the and the utilization is that on on the entire thing or 32:10 32 minutes, 10 seconds Yeah, in quarter 4 we achieved 98% plus utilization right and and what is the cex plan for 32:18 32 minutes, 18 seconds uh uh for for fi 27 so fi 27 kx plan will be between 120 to 32:27 32 minutes, 27 seconds 120 primarily there is one large investment uh on our onbr solar so the cash outgo will and become commissioning 32:34 32 minutes, 34 seconds will happen this year. The second part is on a strategic investment. Uh another part is about 15 odd crores in our 32:42 32 minutes, 42 seconds meeting machines which will happen and there is a large strategic investment which we are doing in PMRA which I outlined in my opening as well that is primarily for land. 32:55 32 minutes, 55 seconds Uh thank you so much for contacting. Thank you. Thank you. 33:02 33 minutes, 2 seconds Next question is from the line of Amed Cheda from Banyan Capital Advisor. 33:07 33 minutes, 7 seconds Please go ahead. Uh thanks for the opportunity. Uh uh so this 25,000 spindles uh peak again is 33:15 33 minutes, 15 seconds around 300 crores, right? So in Q4 we did 70 75 crores. Is that understanding correct? 33:22 33 minutes, 22 seconds So that uh 300 cr number is basically includes actually it's a range depending on the price of the product and it is 33:30 33 minutes, 30 seconds between 50 to 300 crores is including both mating and uh spin wage. 33:36 33 minutes, 36 seconds Okay. So I think uh um that is what uh it is per quarter only spinning would be 33:43 33 minutes, 43 seconds about 50 to 60 post and I think that is what we sort of achieved in a way in in quarter 33:51 33 minutes, 51 seconds and uh what was the contribution from this in Q3? 33:56 33 minutes, 56 seconds Uh Q3 was lower I think uh Q3 was almost 80% of it. So it would be about 35 odd crows is what uh it would be. 34:06 34 minutes, 6 seconds Okay. So I'm just trying to understand where will the incremental growth uh in this financial year come from? Uh the 34:14 34 minutes, 14 seconds the uh you know we did around 1,300 crores this year. So if you can use guide on where this in incremental growth will come from. 34:24 34 minutes, 24 seconds So um one number one is in actually we sort of operated for peace quarters right the new 25,000 unit uh what we 34:32 34 minutes, 32 seconds operated for water I think the full benefit we will receive next year also now the products are getting stabilized so of course there is a uh benefit which 34:40 34 minutes, 40 seconds will come from unit price as well is knitting machines we have 15 knitting machines which got installed only at the 34:47 34 minutes, 47 seconds end of January so where full benefit will come also we are uh putting uh another 25 machines large part of it 34:55 34 minutes, 55 seconds almost I think 60% of it will come in quarter two and quarter three so we get a benefit from those knitting machines as well uh the other part is that we are 35:04 35 minutes, 4 seconds putting up our solar investment so rooftop solar got commissioned only in March and our on ground solar will get 35:11 35 minutes, 11 seconds commissioned around uh quarter two right uh that is the timeline we have so there will be a benefit from that and it will 35:18 35 minutes, 18 seconds help our profitability the fourth part is part we made a lot of investment in the last three four years right so we 35:25 35 minutes, 25 seconds first installed almost 30,000 spindles for synthetic then another 25,000 spindles now it has reached a level 35:32 35 minutes, 32 seconds where the product can uh optimize on the product mix and stretch are both stop line and margin from that front so this 35:40 35 minutes, 40 seconds will be the growth uh for F57 and we are still holding to the 2000 cr 35:48 35 minutes, 48 seconds revenue guidance in the next three years right yes yes we we are sort of putting an anchor on We are holding that. Okay. 35:56 35 minutes, 56 seconds Thank you so much. Thank you. 36:02 36 minutes, 2 seconds Next question is from the line of Madur Rati from counter cyclical investments. Please go ahead. Sir, thank you for the opportunity sir. 36:09 36 minutes, 9 seconds I wanted to understand regarding the 15 to 18%a margin guidance. So what will drive this? Will this be driven by uh 36:17 36 minutes, 17 seconds premium product mix in yarn segment only or will it be driven by the fabric portion increasing overall if you could 36:25 36 minutes, 25 seconds just help us understand that uh um see I think if you see our 10 years last 10 years aid right we have delivered 15%. 36:36 36 minutes, 36 seconds So number one I think our normal AIDA for the current set of products itself is about 15%. And I think with the 36:43 36 minutes, 43 seconds market environment getting better we would be able to drive towards this uh edita margin as well. Second part is we are going towards vertical integration. 36:53 36 minutes, 53 seconds So uh this 25,000 spindles is actually integrated project with fabric. Our fabric uh uh woven fabric revenue also 37:02 37 minutes, 2 seconds is going right now is on an outsource model but we sort of have plans we have plans to invest in both fabric making 37:09 37 minutes, 9 seconds and processing. I think that would add another incremental uh edit margin. And the third part is on our product um uh 37:18 37 minutes, 18 seconds product portfolio getting more optimized towards higher margin products. I think that is a continuous journey which we have been doing. There is a continuous bottom slicing of products where we 37:26 37 minutes, 26 seconds think margins are shrinking and we sort of move to a new product. And the fourth part is maintaining our utilization levels. We have been able to maintain 98 37:34 37 minutes, 34 seconds 99% utilization levels. I think if we continue to maintain that definitely this 15 to 18% margin is achievable within the next three years 37:43 37 minutes, 43 seconds right sir so I'm trying to understand sir our aspiration has been always uh so one of our competitors amigga cotton 37:51 37 minutes, 51 seconds they do close to 67 sorry close to so they do close to 35% of aa margins over 37:59 37 minutes, 59 seconds a long-term period and we do close to 30%. So how will we bridge this gap because we have they are only a yarn 38:06 38 minutes, 6 seconds yarn player and we are a yarn plus fabric still we are doing 70%. So how will we bridge this gap if you could 38:14 38 minutes, 14 seconds help us understand? So Amar cotton primarily is a vertically integrated player they are a big name or there is a 38:22 38 minutes, 22 seconds recognized name in music fabric. So they are vertically integrated. They are not a standalone one or manufacturer. 38:29 38 minutes, 29 seconds Second, they have been uh running this business of vertically integrated med service for a much longer time and they have been able to optimize their 38:37 38 minutes, 37 seconds products or maintain a quality which will fetch them higher margin. We are on that journey. I think we have just started our vertical integration journey 38:44 38 minutes, 44 seconds now and within not a very long time but in a short period of time we will be able to get better on our quality, 38:52 38 minutes, 52 seconds customer selection, market selections and definitely we'll be able to stretch our margins on vertical integration as well. 39:00 39 minutes Got it. Um so just a final question from manure with this 40 machines that we have added on the netting side uh how 39:08 39 minutes, 8 seconds much what percentage of our revenue should come from fabrics going forward through this. 39:15 39 minutes, 15 seconds Hey, I think uh with this 40 machines installed, we would be somewhere between 16 to 18% of our fabric revenue coming 39:22 39 minutes, 22 seconds from uh sorry, our total revenue coming from fabrics almost 50% of it will be from limited fabric. So at at 40 39:30 39 minutes, 30 seconds machines we'll be able to do about 15 to 16 tons per day, right? Which would on a basis itself would be about 12% of our 39:38 39 minutes, 38 seconds overall uh volume, right? So not much because currently we 39:45 39 minutes, 45 seconds are doing 15% of our revenue is coming from fabric. So right 39:52 39 minutes, 52 seconds the three sorry uh that is 12% only but that is primary and outsource model. So on outsource 39:59 39 minutes, 59 seconds model we are focusing more on volume buildup and not on profit maximization. 40:03 40 minutes, 3 seconds When it is in-house while the volume would remain similar but it would be more a profit maximization story. 40:12 40 minutes, 12 seconds Right. 40:19 40 minutes, 19 seconds Thank you ladies and gentlemen. In order to ensure that the management is able to address questions from all the participant in 40:26 40 minutes, 26 seconds the question queue, please restrict yourself to two questions only. Should you have a follow-up questions, please rejoin the queue. 40:34 40 minutes, 34 seconds Next question is from the line of Vun Kajara from Omara Capital. Please proceed. 40:41 40 minutes, 41 seconds Thank you for taking my question. Uh just wanted to understand uh so out of the out of the 25,000 spends that were 40:49 40 minutes, 49 seconds that were only recently inaugurated and to that 40,000 spends. So of that of the incremental revenue that we've made this 40:58 40 minutes, 58 seconds year uh what portion of it will be attribut will be attributable to these uh this new capacity 41:11 41 minutes, 11 seconds hello sorry I sorry I'm sorry I was in mute okay uh our revenue because of this 41:18 41 minutes, 18 seconds 65,000 increase has almost gone up from 900 crores to about 1330 crores Right. 41:24 41 minutes, 24 seconds So particularly with respect to this 25,000 spindles almost I think 120 odd crores 41:32 41 minutes, 32 seconds or uh 125 odd crores uh revenue this year has come from the new spindles okay and this is 25,000 spindles I'm 41:41 41 minutes, 41 seconds talking not uh the 40,000 spindles for 40,000 spindles what I have told you is that our revenue has gone up from about,950 odd crores to about 1,35 crores. 41:53 41 minutes, 53 seconds Okay. So uh so 24 of those 24,000 seniors they be working at what 60% capacity at uh 42:01 42 minutes, 1 second as of now the contribution you can make it about 70 75% 42:08 42 minutes, 8 seconds 25 so so I suppose you'll have 15 15% more runway here yeah yeah 42:14 42 minutes, 14 seconds in almost 24% more like another uh benefits from price maximization and 42:23 42 minutes, 23 seconds Right. Right. So probably in 27 uh do you have a revenue guidance for 27 the group I think something that will be you 42:31 42 minutes, 31 seconds know targeting this year to put a number on uh what would be revenue I think it's difficult because a 42:40 42 minutes, 40 seconds lot will depend on how the prices move but what uh we are sort of internally driving towards is maintaining our current growth rate what we achieved this year. 42:50 42 minutes, 50 seconds Okay. So 14 14 15% of it. Okay. 42:56 42 minutes, 56 seconds Okay. So so to to get to get to the 2000 figure that we are uh that we are alluding to uh this this current 43:04 43 minutes, 4 seconds capacity what will be other triggers to drive our growth uh because I suppose you spoke on the margins that there'll be solar capacity and all that coming in 43:12 43 minutes, 12 seconds which is a different thing altogether which will have more impact on the margins. uh but uh but what will uh what will really drive our growth revenue 43:20 43 minutes, 20 seconds growth from here because the 25,000 spings that we are uh installing they'll mature this year so what what is the 43:28 43 minutes, 28 seconds plan for the so you are absolutely right I think uh there is a limited uh room for topline improvement right from our current set 43:36 43 minutes, 36 seconds of assets that's why we said that we we have almost 3 uh 50 crores of investment to be done from the uh agreement which 43:45 43 minutes, 45 seconds we had and commitments which we have. I think those investments are going in processing and fabrication. I think this 43:52 43 minutes, 52 seconds uh these investment typically have a much better attack turn on ratio. I think that would enable us to bridge the gap towards 2,000 crores. 44:01 44 minutes, 1 second Okay. So our return will be one and a half times because yeah it will be one and a half on the side of things. Yeah. Okay. Got it. Got it. Okay. Okay. 44:11 44 minutes, 11 seconds Thank you so much for taking my question. All the best. Thank you. Thank you. 44:19 44 minutes, 19 seconds Next question is from the line of Djakur from Ilara Capital. Please proceed. 44:25 44 minutes, 25 seconds Uh congratulations sir for the such a nice set of numbers. So most of my questions have been answered but the last question which I would ask ask is 44:34 44 minutes, 34 seconds what is the mix of cotton and blended yarn in the current yarn volume? 44:41 44 minutes, 41 seconds mix of cotton and blended yarn. You mean synthetic blended or how could you main blended in the pure cotton yarn? 44:50 44 minutes, 50 seconds Okay. Okay. So see our mix is almost 65% towards 100% cotton and red% is on 44:58 44 minutes, 58 seconds synthetic blended that is the mix we follow and synthetic blended there are various versions there is polyester cotton rich right so I'm not including 45:07 45 minutes, 7 seconds that part here so 65% almost 65 to 70% is almost 100% cotton y understood understood thank you sir that 45:15 45 minutes, 15 seconds answers my question thank Thank you. 45:21 45 minutes, 21 seconds Next question is from the line of Sakit Kapoor from Kapoor and Company. Please go ahead. 45:29 45 minutes, 29 seconds Yeah, sir. Hope hope I'm audible. Yes, please go ahead. 45:33 45 minutes, 33 seconds Yes. Yes. Yes. No sir. And thank you for the opportunity sir. Sorry I was just late to the call so my question may be repetitive. Sir firstly you alluded to 45:41 45 minutes, 41 seconds the 120 K capex for the current financial year. So if you could just explain where where this money will be 45:49 45 minutes, 49 seconds invested and how will the asset turn over uh we will expect from the same and then how sir rupee depreciation to 90 45:58 45 minutes, 58 seconds closer to 96 now to a dollar how will this uh help uh businesses like us which 46:06 46 minutes, 6 seconds we are we are getting and uh in the other income component we have seen uh a substantial jump to 10 cr rupes. So if 46:14 46 minutes, 14 seconds you could just explain the nature of the same. 46:18 46 minutes, 18 seconds Uh yeah suppose in uh our capex I think almost 35 crores is going towards our on 46:25 46 minutes, 25 seconds ground solar uh 10 megawatt capacity what we are putting up. uh there is a investment of almost about 15 crores in 46:32 46 minutes, 32 seconds our mitt machine and we have another uh land allocation in BMRA a strategic land 46:39 46 minutes, 39 seconds allocation where a substantial portion of capital is going and the remaining is our replacement and infrastructure 46:46 46 minutes, 46 seconds depict which is as part of our process which we build to maintain we have a healthy uh mix of spendage um in in our 46:54 46 minutes, 54 seconds unit in terms of repeat depreciation I believe uh it impacts in both ways. So definitely uh we get a better money uh 47:03 47 minutes, 3 seconds or realization on exports uh the quantity which we export but at the same time it impacts up in our cotton right 47:10 47 minutes, 10 seconds because we have almost 30% of our cotton on an imported mode right we buy a lot of imported cotton I think that becomes 47:17 47 minutes, 17 seconds expensive for us also across the textile value chain uh lot imported spares are used which sort of becomes expensive 47:26 47 minutes, 26 seconds with this rupee depreciation the third part Rupee depreciation also impacts let's say people who buy chemicals for 47:33 47 minutes, 33 seconds processing and other operations. So overall in general there's an inflation in the textile ecosystem but at the same time your exports set you higher 47:42 47 minutes, 42 seconds realization. From our point of view particularly the effect is neutral. So it is both ways it is benefit but also 47:49 47 minutes, 49 seconds it is a challenge as well. uh in terms of your third question about other income there was a sale of nonstrategic 47:57 47 minutes, 57 seconds or non-core land parcel which we have done and out of that about 8 8 something crores of profit has been realized 48:07 48 minutes, 7 seconds hello yes sir hope I answered all your question yes sir you did you did answer 48:14 48 minutes, 14 seconds to them sir uh when we look at uh our uh dividend payout this time although we have upped the dividend with the 48:22 48 minutes, 22 seconds improved profitability but the dividend distribution is uh less than 10%. So if you could just outline to us what what 48:30 48 minutes, 30 seconds is the thought process of the management in terms of distributing cash to the to the investor committee and s secondly if 48:38 48 minutes, 38 seconds you could just give some more color of how the current business environment scenario is playing out. I missed your opening remarks in terms of the type of 48:47 48 minutes, 47 seconds uh we are seeing in the crude prices, logistic issues and then uh inflation 48:55 48 minutes, 55 seconds inflatory trends emerging in almost every aspects of day-to-day living how is that affecting uh the the business in 49:03 49 minutes, 3 seconds particular for us in terms of the spreads. So if you could just outline to us these two aspects. Soap I will take 49:11 49 minutes, 11 seconds your second question first on the business environment and I will request uh Jalani and Raman G to take up your 49:18 49 minutes, 18 seconds question on division payout. In terms of uh current business environment we see as a case of cautious optimism. So there 49:26 49 minutes, 26 seconds is a lot of demand tailment which is happening because of the FDA is getting signed and even the domestic market doing better. There is definitely a risk 49:34 49 minutes, 34 seconds on the side of West Asia conflict and uh impact from that. You definitely said there is an inflationary pressure across 49:41 49 minutes, 41 seconds which will come in all commodities and also uh as an availability of critical raw 49:48 49 minutes, 48 seconds materials and volatility in that that are some uh important risk which will impact and that's why as I said in the opening remarks we see it as a case of 49:57 49 minutes, 57 seconds cautious optimism we are optimistic but yes there are cautions also emerging in terms of spread our spreads have gotten 50:03 50 minutes, 3 seconds better from Q3 to Q4 uh at least we see that continuing in quarter one. Beyond that, a lot will depend on how global situation is evolving. 50:14 50 minutes, 14 seconds Uh hope I have answered your second question. Then I'll ask Mr. Galan or Mr. Raman to take up your first question. 50:21 50 minutes, 21 seconds Yeah. Uh yes sake G uh you know as you know that G uh as you know that our 50:28 50 minutes, 28 seconds policy of uh uh you know allocation of our cash flow is very uh uh is very I 50:35 50 minutes, 35 seconds would say committed towards the gross capex as well as the reward to the shareholders and also our uh loans. So these are the three areas that we look 50:44 50 minutes, 44 seconds at as Marshall has uh you know talked earlier that we are continuing our journey towards the vert vertical 50:52 50 minutes, 52 seconds integration which will require around another 350 cr of kind of capex spend uh spread over a period of couple of years 50:59 50 minutes, 59 seconds or two to three years time. So therefore to you know meet those requirements of growth so the requirement of whatever cash flow we are generating is more 51:07 51 minutes, 7 seconds toward the growth capex. So therefore we are adhering to our policy of 8 to 12% payout. So last year the payout was 8%. 51:16 51 minutes, 16 seconds This year also we have retained our payout of 8%. And the overall percentage is around instead of 25% there is a 30% 51:23 51 minutes, 23 seconds dividend. So we are retaining that. So and we'll be utilizing our uh cash flow to towards meeting our growth needs. So 51:31 51 minutes, 31 seconds it is both reward to the shareholders as well as the growth needs. That is what we are aiming at. And as in when you know we have surplus capex whenever it 51:40 51 minutes, 40 seconds is there uh beyond the capex or the growth requirement will definitely increase our pay. I hope I have answered your question. 51:49 51 minutes, 49 seconds Yes sir. Thank you for the answer that only on the nonor I joined the thank you for answering and for elaborate discussion. 52:00 52 minutes Thank you sir. 52:02 52 minutes, 2 seconds Next question is from the line of hers Kartka from Robo Capital. Please go ahead. 52:09 52 minutes, 9 seconds Uh hi. Thanks for the opportunity. Am I audible? Yes. 52:15 52 minutes, 15 seconds Uh yes, thank you. Sir, I'm saying on page number 10 of our PPT, we are saying that we will more than double the revenue, right? So, are we implying a 52:24 52 minutes, 24 seconds revenue potential of 2,600 crores upwards of that? 52:29 52 minutes, 29 seconds No, I think uh this revenue doubling is from our initial base when we started this commitment of doubling which was about 1,000 crores. So our anchor is 52:37 52 minutes, 37 seconds about 2,000 crores at least for the short time uh short journey of about 3 years. 52:43 52 minutes, 43 seconds Okay sir I just wanted to clarify that sir and my second question is uh regarding the volume growth that you're seeing so what kind of volume growth can 52:52 52 minutes, 52 seconds we see in let's say next year or you know in FI28? 52:57 52 minutes, 57 seconds So volume growth from our new spindle which is there uh we utilize only for two quarters. Uh right. So definitely a 53:05 53 minutes, 5 seconds benefit of about four to 5 months will come in and also uh as that is the maximum beyond that I think it will it 53:12 53 minutes, 12 seconds will be dependent on the kind of product mix which we which we will sort of operate in our units. the volume growth could come from that but primarily I 53:20 53 minutes, 20 seconds think next year the volume growth is going to come from this quarter two quarters of mining 25,000 and also maximization of our uh as in uh 53:29 53 minutes, 29 seconds stretching of prices better product mix right uh I think that is where the growth will come from but not only from 53:38 53 minutes, 38 seconds like are we seeing good impact from FDA with the UK and Europe 53:44 53 minutes, 44 seconds so FDA init FDA are executed but we have seen supply chains reoriented towards India right so a lot of the new 53:53 53 minutes, 53 seconds customers which are there in UK and EU have started approaching governmental in India and started creating some prior orders that is the reorientation of supply chain which is happening of 54:01 54 minutes, 1 second course with the view on a long-term basis the volume will go up all sir thank you 54:11 54 minutes, 11 seconds thank you next question is from the line of saga from astral investor Please go ahead. 54:19 54 minutes, 19 seconds Yeah. Hello. I'm audible. Yes. 54:23 54 minutes, 23 seconds Yeah. Yeah. Hi sir. So, so your operating cash flow has decreased lot in year on year. I understand that inventory pump as well. But what about 54:31 54 minutes, 31 seconds receivables? Uh they have also increased like 43%. 54:37 54 minutes, 37 seconds Yeah. So receivable increase is primarily for two reasons. Uh of course one is large part of it is because of 54:44 54 minutes, 44 seconds revenue increases. So once uh your sort of top line starts to go up then definitely the refusals will also go in 54:51 54 minutes, 51 seconds with that. Second is uh in terms of uh payment discipline right because quarter two quarter 3 was particularly challenging for uh uh the industry. So 55:00 55 minutes payment discipline was not there and certain in certain cases higher credit limit was extended but that number will now start to shrink because overall 55:09 55 minutes, 9 seconds market has started to perform better and the payment decision is coming in. 55:14 55 minutes, 14 seconds Fair enough. I said uh so from the long uh uh you know long duration so the cotton yarn industry globally is not 55:22 55 minutes, 22 seconds grown much in the last 10 years but India has grown because you know uh we are the second largest cotton production. So how do you see the 55:29 55 minutes, 29 seconds long-term trajectory of cotton considering the synthetic yarn growth is much faster. So what would be the industry growth that you can expect and 55:37 55 minutes, 37 seconds how would you uh you know grow faster than the industry? 55:42 55 minutes, 42 seconds So in terms of yes I think globally there is a shift towards synthetic but India of course has inherent benefits and advantages when it comes to cotton I 55:51 55 minutes, 51 seconds don't see those benefits going away uh except in India maybe the cotton production is growing only in Brazil and 55:59 55 minutes, 59 seconds India of course is at a much lower speed right so definitely there is a very high likelihood or potential of cotton 56:07 56 minutes, 7 seconds production itself growing in India that would sort of put the Indian cotton industry in as a very good situation. 56:13 56 minutes, 13 seconds Second, the uh technology upgradation in India has happened a lot particularly when it comes to cotton spinning. So I 56:21 56 minutes, 21 seconds think because of these two things uh Indian cotton industry will always be in a good at least looks like to be in a good situation for a considerable amount 56:29 56 minutes, 29 seconds of time. Globally yes there is a shift towards polyester but the way we are adjusting is we are mixing cotton with 56:36 56 minutes, 36 seconds MMF product and giving a solution to our customers whether it is cotton cellos cotton polyester right so our strength 56:44 56 minutes, 44 seconds primarily comes from cotton and that is what we are banking upon and creating products which will satisfy customers needs as for that uh how do we grow 56:53 56 minutes, 53 seconds higher than the industry I think we have we have spoken about it for almost an hour now I We are investing towards 57:01 57 minutes, 1 second going towards ready to cut fabric. We are positioning ourselves as a premium yarn supplier and going forward a 57:08 57 minutes, 8 seconds premium fabric manufacturers working with the top global brands. Uh coming across more as a solution provider for 57:16 57 minutes, 16 seconds their raw material needs for for particular environmentals and brands. I think this is how we are positioning and believe uh with this positioning will 57:23 57 minutes, 23 seconds definitely be able to grow better than the industry. Okay. 57:27 57 minutes, 27 seconds your working capital days. So it was around more than 135 140 days around right and I was looking at some of your competitors they have a working capital 57:36 57 minutes, 36 seconds days of around 90 days. So uh what is our sustainable working capital because this is impacting your ro right. So 57:43 57 minutes, 43 seconds what's your working capital expectation in 2 3 years down the line. 57:50 57 minutes, 50 seconds Uh so I think the ideal number of working capital will depend a lot on the business model as well but currently we are at an elevated working capital level 57:59 57 minutes, 59 seconds primarily because we preempted a lot of these cotton price increases and build our inventory. uh definitely there is a scope for optimization of it and you 58:07 58 minutes, 7 seconds will see this inventory tapering down as we sort of reduce our cotton purchases in terms of our other FG and WP they are 58:15 58 minutes, 15 seconds pretty at lower level than what we were last year so primarily the increase in working capital is alluded primarily 58:22 58 minutes, 22 seconds because of your cotton what is an ideal working capital level as it as I said depends on model to 58:29 58 minutes, 29 seconds model but it has it usually has been between 110 to 20 days for us also and I think that is the level what we are planning to maintain. 58:39 58 minutes, 39 seconds So this uh 2,000 cr guidance that you have guided uh for uh what is the year that you can achieve that and also this 58:48 58 minutes, 48 seconds 15 17% margin at what year you can expect to achieve that. 58:54 58 minutes, 54 seconds So as for our internal guidance we are sort of aiming for fi 29 uh at least for the top line maybe around fi 30. So you 59:03 59 minutes, 3 seconds think this is 199 and we are planning to achieve this both for your topline guidance as well as margin guidance. 59:11 59 minutes, 11 seconds Fair enough. Okay. Yeah, that's it. Thank you sir. 59:16 59 minutes, 16 seconds Thank you ladies and gentlemen. We will take this as a last question for the day. I now hand the conference over to the management for the closing comments. 59:28 59 minutes, 28 seconds Hi, good evening to everyone. 59:31 59 minutes, 31 seconds I have been given the responsibility to give a closing remarks. Uh so first and foremost Marshall I think you have very well articulated the whole position of 59:39 59 minutes, 39 seconds the six time and I think you have been able to gauge that how the uh outlook we have and what is the ultimate objective 59:46 59 minutes, 46 seconds what we are going to achieve in 29uh 30 I can only say three things first and foremost you remember the last time in 59:53 59 minutes, 53 seconds our call I have said that now I'm clearly seeing a visibility of optimism in the business because I would say that 1:00:02 1 hour, 2 seconds headwind had been for pretty long and the last what I have said and that you have been getting the reflection now and what our co master has said now we are 1:00:11 1 hour, 11 seconds seeing this uh optimism in going forward in 2627 as well the second point we are in the right track of moving for our 1:00:20 1 hour, 20 seconds ultimate objective in 2930 like we have done a strategic investment into the PMRA park that's going to a big in uh 1:00:27 1 hour, 27 seconds what you call advantage out of that PMRA park we'll be able to establish our processing without much of the difficulty in along with the cut ready to cut fabric region. 1:00:39 1 hour, 39 seconds So that we have got the land a lotment and we are going to make an investment in that. Overall we are on a right path of achieving this 2,000 k objective with 1:00:48 1 hour, 48 seconds a 15% of uh 15 to 18% kind of IDA margin. Someone very rightly said ROC. 1:00:55 1 hour, 55 seconds Now our focus is also on the ROC. 1:00:58 1 hour, 58 seconds uh yet this year uh some ROC improvement had happened around a percent uh 1% and our ultimate objective by optimizing the 1:01:06 1 hour, 1 minute, 6 seconds working capital by optimizing the margins we have an objective to go to a double digit of the ROC going forward 1:01:14 1 hour, 1 minute, 14 seconds that may take some time but that will happen now the complete uh team is aligned with 1:01:23 1 hour, 1 minute, 23 seconds that and definitely we're going to achieve these three objectives thank you for uh for all of you for your support and we'll continue to deliver 1:01:30 1 hour, 1 minute, 30 seconds our uh performance as desired by you all. Thank you sir. 1:01:38 1 hour, 1 minute, 38 seconds On behalf of Go India Advisers that concludes this conference. Thank you all for joining us and you may now disconnect your lines.