Gravita India Limited — Q3 FY26

Gravita India Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=swok_dFhrDM Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to 3Q and NMFI26 post results conference call of Gravita 0:08 8 seconds India Limited hosted by Antic Stock Broking. As a reminder, all participant line bulb the listenon mode and there 0:16 16 seconds will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please 0:23 23 seconds signal an operator by pressing star then zero on your touchdown phone. I now hand the conference over to Mr. Manish Mahavar from Antic Stock Broking. Thank you and over to you sir. 0:36 36 seconds Yeah, thank you moderators. On behalf of antic stock broking, I would like to welcome all the participants on the 3Q FI26 earnings call of gravity India. 0:45 45 seconds Zavita's leadership team represented by Mr. Jesh Malotra full-time director and CEO, Mr. Sil Kanser, full-time director 0:52 52 seconds and CEO, Mr. Navin Sharma, executive director and Mr. and investor relations on the call. Without any delaying, I would like to hand over the call to Mr. 1:01 1 minute, 1 second Manutra for opening remarks. Post which we open the floor for Q&A. Thank you and over to you AG. 1:08 1 minute, 8 seconds Thank you Mr. Manish. Good afternoon everyone and welcome to our Q3 and 9 months FI26 earnings call. I hope you 1:17 1 minute, 17 seconds have had an opportunity to review the earnings presentation and financial results uploaded on the stock exchanges. 1:24 1 minute, 24 seconds I'm pleased to share that Gravita delivered a consistent performance in Q3 and 9 month FY26 1:31 1 minute, 31 seconds reflecting steady progress across operational and financial parameters in all major business verticles. 1:39 1 minute, 39 seconds In 9 month FY26, the company delivered year-on-year growth of 9%, 15% and 32% 1:47 1 minute, 47 seconds in revenue, AITA and PAT. Before delving into the results, I would like to take a moment to highlight our ongoing expansion plans and strategic updates. 1:59 1 minute, 59 seconds There have been some delays in our capacity expansion plans. Although broadly we are progressing as with 2:06 2 minutes, 6 seconds installed capacity now at about 3.40 lakh metric ton peranom. 2:12 2 minutes, 12 seconds Uh we expect to cover it up in the upcoming quarters to meet our medium-term target of scaling this up to over 7 lakh metric t peranom by FY28 2:21 2 minutes, 21 seconds in line with our focus on building a larger and more diversified recycling platform. 2:27 2 minutes, 27 seconds On the investment side, we have earmarked a total capex of rups 1,225 cr through FY28. Of this around rupes 2:37 2 minutes, 37 seconds 850 cr is being deployed towards strengthening and expanding our existing businesses. While the balance will support entry into new recycling 2:45 2 minutes, 45 seconds verticals like lithium ion batteries, paper and steel. During the first nine months of 2026, 2:53 2 minutes, 53 seconds we have already incurred capex of about rupees 125 crores. 2:59 2 minutes, 59 seconds At Mundra, lead capacity expansion of 80,000 metric ton peranom is targeted for completion by Q4 FI26. 3:07 3 minutes, 7 seconds At capacity expansion up to 45,000 metric t peranom is target uh for completion by Q4 FI26. 3:17 3 minutes, 17 seconds The Munda rubber project is slated to uh slated for commissioning in QY FY27 with revenues expected to begin flowing 3:25 3 minutes, 25 seconds from Q2 FY27 aided by stabilization of the Romania operations as well. 3:32 3 minutes, 32 seconds Gravita Netherlands BV our step down subsidiary has approved an additional investment in Gravita Europe SRL through 3:39 3 minutes, 39 seconds the acquisition of 3.5 lakh shares representing a 15% stake. Post this transaction GNBV shareholding in Gravit 3:48 3 minutes, 48 seconds Europe SRL will increase from 80% to 95% further strengthening our presence in the European market. 3:56 3 minutes, 56 seconds On the operational front, the regulatory environment remains favorable for organized recyclers. 4:02 4 minutes, 2 seconds Stronger enforcement of the BWMR and EPR frameworks has enhanced accountability across producers, recyclers and 4:11 4 minutes, 11 seconds collection agencies leading to more efficient collection channels, reduced leakages to the unorganized sector and improved traceability. 4:22 4 minutes, 22 seconds These measures have materially increased domestic scrap availability driving higher local sourcing. 4:30 4 minutes, 30 seconds In terms of volumes, Q3 FY26 saw a modest sequential improvement overall. 4:36 4 minutes, 36 seconds The lead segment reported steady growth on both Yony and Q on Q basis. The plastic segment recording recorded a 4:45 4 minutes, 45 seconds strong rebound with volumes rising 55% Q on Q to 3,160 metric ton. In contrast, 4:52 4 minutes, 52 seconds aluminium volumes declined on both a year-on-year basis and quarteron-quarter basis. The decline in aluminium volumes 5:00 5 minutes during the quarter was primarily driven by higher metal prices in the market. 5:05 5 minutes, 5 seconds In such periods, scrap aggregators typically withhold material in anticipation of further price increases. 5:12 5 minutes, 12 seconds which temporarily tightened scrap availability. This led to lower procurement and consequentially reduced processing volumes during the quarter. 5:21 5 minutes, 21 seconds As prices stabilize and scrap flow normalizes, procurement is expected to improve supporting a recovery in aluminium volumes in the coming quarters. 5:34 5 minutes, 34 seconds Lead, aluminium, and plastic AITA per ton stood at 23,000 rupees. uh 14,215 rupees and 10,462 rupees respectively. 5:46 5 minutes, 46 seconds In Q3 FY226, revenue remained flat on both year-on-year and quarteronquarter basis 5:52 5 minutes, 52 seconds at rupees 1,7 cr. Adjusted AITA stood at 5:58 5 minutes, 58 seconds rupees 116 crores up 13% yearonear and 4% quarteron quarter with margins 6:05 6 minutes, 5 seconds remaining strong at 11.41% 41% plus supported by operating efficiencies and mixed improvements. PAT increased by 32% 6:14 6 minutes, 14 seconds yearonear to rupees 97.67 crores with PAT margins remaining healthy at 9.60%. 6:22 6 minutes, 22 seconds Gravita is progressing steadily towards vision 2029 backed by a clear road map to scale it its core business while 6:29 6 minutes, 29 seconds expanding into new recycling segments such as lithium ion, rubber, steel, and paper. The company is targeting sto 6:37 6 minutes, 37 seconds strong growth metrics including a volume CAGR of over 25% profitability growth above 35% and ROIC exceeding 25%. 6:47 6 minutes, 47 seconds Alongside increasing the non-LED segments contribution to 30% of revenue, raising renewable energy usage to 30% 6:56 6 minutes, 56 seconds and reducing energy intensity by over 10%. With more than three decades of experience, 13 environmentally 7:03 7 minutes, 3 seconds responsible facilities and a presence in over 70 countries, Gravita is well placed for sustainable long-term value 7:10 7 minutes, 10 seconds creation supported by disciplined capex capacity expansion, operational efficiency, and strong governance. 7:19 7 minutes, 19 seconds That's all from my end. I would now request to open the floor for questions and answers. Thank you and over to you moderator. 7:26 7 minutes, 26 seconds Thank you so much, sir. Ladies and gentlemen, we'll begin with the question and answer session. Anyone who wishes to ask a question may press star and one on 7:34 7 minutes, 34 seconds the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are request to use handsets while asking a question. 7:44 7 minutes, 44 seconds Ladies and gentlemen, we'll wait for a moment while the question Q assembles. 7:52 7 minutes, 52 seconds Our first question come from the line of 8:00 8 minutes Amit Luti from MK Global Financial Services Limiter. Please go ahead. 8:05 8 minutes, 5 seconds Thanks for the opportunity. My first question is on capacity expansion projects like you highlighted there was a delay. So what were the bottlenecks in 8:14 8 minutes, 14 seconds the last two to three months which led to this delay? 8:19 8 minutes, 19 seconds Um sir we have we already have the installed capacity there but there there is some delays from the government uh 8:27 8 minutes, 27 seconds authorities in giving the license to operate uh because of various reasons in Gujarat because of this vibrant Gujarat 8:35 8 minutes, 35 seconds uh into play. So some of the government officials are not regularly attending the offices right now. So we are 8:42 8 minutes, 42 seconds expecting this to probably uh happen in either uh month and uh of January or 8:50 8 minutes, 50 seconds maximum in uh Feb itself. So in this quarter we we are expecting both the fagi as well as Mundra plant to get the uh license to operate. 9:00 9 minutes Okay. So is there a change in government's stance on recycling and hence there is no sense of urgency around the approvals because even for 9:09 9 minutes, 9 seconds other regulations like reverse charge mechanism we have been waiting for quite some time but government support hasn't been coming so far and then there is a 9:19 9 minutes, 19 seconds uh delay in approval. So is there a trend or this is just like oneoff kind of a delay that we are looking at? It's 9:26 9 minutes, 26 seconds a one one of a kind delay because you know these uh consent to operate are given by state governments and not the central government and uh I mean it's 9:35 9 minutes, 35 seconds not that they have told us not because we already have CTE which is the consent to establish so that we've already got so generally after that they just 9:44 9 minutes, 44 seconds inspect the uh your site to see whether it is in line with the uh the uh approval they have given and once they 9:51 9 minutes, 51 seconds are sure they will give you the consent to operate. So it's merely a formality but because of not I mean because of this vibrant Gujarat uh theme they they are not regularly attending the office. 10:03 10 minutes, 3 seconds So that is why the delay is there but we are very confident that it will happen now in in this quarter itself. 10:10 10 minutes, 10 seconds Okay got it. My second question is that our margins have been holding up pretty well and above our guidance consistently. 10:18 10 minutes, 18 seconds uh but still our guidance remains where it is like 19 to 20 rupees per kg but we have been reporting 23 rupees per kg. So 10:25 10 minutes, 25 seconds at what point do we leave this restraint and holding the guidance because our peer group is already talking about margin upgrades for quite some time. 10:35 10 minutes, 35 seconds U sir uh I think the margin would remain at around 19 to 20 rupees as we mentioned earlier that uh uh we 10:44 10 minutes, 44 seconds sacrifice some revenues to ensure that these margins are intact and our uh so that is why we because there are 10:51 10 minutes, 51 seconds arbitrage opportunities. So we ship some material from our African plants into India uh taking advantage of those 10:58 10 minutes, 58 seconds benefits. Uh so fortunately for us for the last whole year that uh uh that has been the case. So there are there has been some arbitrage opportunities which 11:07 11 minutes, 7 seconds we have been able to uh benefit from uh but uh consistently getting more than 19 11:14 11 minutes, 14 seconds to 20 uh 10 to 20 20 rupees margin we'll have to probably uh wait for maybe 11:22 11 minutes, 22 seconds six more months to see whether we can sustain these these kind of margins or not. 11:29 11 minutes, 29 seconds Okay, got it. And lastly a housekeeping question. what was our domestic versus overseas mix in Q3? 11:37 11 minutes, 37 seconds Um so domestic uh because as as we mentioned that there were some arbitrage opportunities and also we were having 11:44 11 minutes, 44 seconds lot of stock in place because uh the capacity expansion is taking place. So we wanted to stock up all the raw 11:52 11 minutes, 52 seconds material. So we have reduced some uh uh local uh purchases. Uh so overall uh in 12:00 12 minutes the in the quarter how much was the so quarter uh it was 25% from domestic and 12:06 12 minutes, 6 seconds uh 75% was imported. So but overall uh we should be back to the normal one which is around 45% from domestic and 12:15 12 minutes, 15 seconds 55% from the imported one. So once uh we have the capacity live. 12:21 12 minutes, 21 seconds Sure. Okay. Thank you so much. 12:26 12 minutes, 26 seconds Thank you so much ladies and gentlemen. In order to ensure 12:34 12 minutes, 34 seconds that the management will be able to address all the question from the participant on the conference call, kindly limit your question to two 12:41 12 minutes, 41 seconds question per participant. If you have a follow-up question, please rejoin the queue. 12:48 12 minutes, 48 seconds Our next question come from the line of Nilab Jade from Asmo Research. Please go ahead. 12:55 12 minutes, 55 seconds Uh sir thanks for uh the session sir. One question is that then uh as per your opening remarks whatever you mentioned 13:04 13 minutes, 4 seconds then since the topline growth is not expected to pick up uh uh before FY28 is 13:11 13 minutes, 11 seconds my understanding correct because you are see metal is all a boil currently and people are expecting it is also moving up and you are telling that procurement 13:20 13 minutes, 20 seconds of the raw materials is a challenge because uh suppliers are holding it so and then your capacity expansion also 13:27 13 minutes, 27 seconds get delayed. So how do uh would we interpret these two uh issues? 13:33 13 minutes, 33 seconds Yeah. So uh so uh in terms of capacity expansion uh as I mentioned that we are very confident of 13:41 13 minutes, 41 seconds getting the uh expansion in line in the next uh few quarters. Uh so the Indian 13:49 13 minutes, 49 seconds capacity expansion is going to be there in Q4 itself. As far as uh the 13:56 13 minutes, 56 seconds vendors holding up uh scrap is concerned, generally it's a short-term uh thing because their holding capacity 14:03 14 minutes, 3 seconds is also not that huge. So but generally when there is a when there is a increase in prices they generally tend to hold 14:11 14 minutes, 11 seconds some of their inventories but the moment uh the prices stabilizes they will start releasing those inventories. So I don't think that it is going to be and even if 14:20 14 minutes, 20 seconds the prices increase from here onwards because their capacity is limited they will not be able to hold more than that. 14:26 14 minutes, 26 seconds So it will start coming uh it has already started coming to us and we believe that we will be uh back to the normal uh numbers in in the coming quarters. 14:37 14 minutes, 37 seconds Okay. uh and see another thing then then if I take the is the uh in the raw material prices are elevated then your 14:44 14 minutes, 44 seconds margins will get hit or you are taking a cost plus approach so that you don't think that will be uh uh an issue 14:52 14 minutes, 52 seconds no not at all because you know there we buy scrap at a discount over the LM prices when the prices increase also the 15:00 15 minutes the absolute price of the scrap increases but the percentage of the scrap remains the same so the margin between the the selling price and the 15:09 15 minutes, 9 seconds buying price remains intact more or less. Okay. Okay. Thank you. Thanks ma'am. 15:17 15 minutes, 17 seconds Thank you. 15:19 15 minutes, 19 seconds Next question come from the line of Amiteshit from GS. Please go ahead. 15:25 15 minutes, 25 seconds Yeah. Uh good afternoon everyone and thanks for the opportunity. A couple of questions from my side. One is more of a 15:32 15 minutes, 32 seconds macro question on uh on the adoption of uh EPR and PWMR uh particularly uh how 15:40 15 minutes, 40 seconds we are seeing uh what is the progress of uh u the trading of uh aluminium alloy on MCX. So if you can uh briefly 15:50 15 minutes, 50 seconds highlight these because these are some of the tailwinds that uh will drive over performance. That is my first question. 15:59 15 minutes, 59 seconds Okay. So on the part of EPR and battery waste management rules 16:06 16 minutes, 6 seconds uh this is already been reviewed and yesterday 16:12 16 minutes, 12 seconds NTIO has recommended few recommendations strengthening the EPR process 16:20 16 minutes, 20 seconds strengthening the portal and linking of all data from GSTN portal and there are 16:27 16 minutes, 27 seconds further collection rules are also being framed. So we are hopeful that by 16:37 16 minutes, 37 seconds April 1st 2026 these rules will be amended or modified and SOP will be created for collection 16:46 16 minutes, 46 seconds side in battery based management rule and also audit rules are also being formed for EPR and uh when it comes to 16:55 16 minutes, 55 seconds MCX on aluminium. So this is also under consideration with MCX and I'm hopeful 17:03 17 minutes, 3 seconds in FY 26 it should come by Q1 of FY 2627. 17:11 17 minutes, 11 seconds Uh so just wanted to understand the uh understand the constraints behind that because you know we have been uh 17:18 17 minutes, 18 seconds expecting this for over a year and uh and and there has been a very limited progress around particularly the trading 17:27 17 minutes, 27 seconds of uh aluminium on MCX. So just wanted to understand where the you know uh 17:33 17 minutes, 33 seconds where the bottleneck lies or uh is it something regulatory or you know 17:40 17 minutes, 40 seconds something that is uh being discussed with the government or there is something that some data that they are looking at. Uh just wanted to understand the key constraint. 17:50 17 minutes, 50 seconds Yeah constraints are over. The key constraint was that it has to get passed through under security contact 17:58 17 minutes, 58 seconds regulation act. So that took almost one and a half year and it came from ministry of finance and ministry of uh 18:06 18 minutes, 6 seconds mines and BIS. Now the second part was creating a contract that also have been 18:14 18 minutes, 14 seconds formed by MCX. Now it's a call of MCX their business call because they will be the one who will be the beneficiary as a 18:23 18 minutes, 23 seconds platform exchange platform. So there was certain gap because there was change of 18:30 18 minutes, 30 seconds uh their hires authority CEO change was there in somewhere in November and it has already discussed with in their 18:37 18 minutes, 37 seconds meeting and frankly speaking the call has to be taken by M6 regulation is over and that's their business call and they 18:46 18 minutes, 46 seconds also created specification committee also but anytime they should do 18:54 18 minutes, 54 seconds Okay sir. The second question is a more of a bookkeeping question. If you can uh mention the uh revenue and profit from overseas I mean percentage terms. 19:09 19 minutes, 9 seconds Sir, we uh I mean it's it's uh it's not right to understand our profitability 19:16 19 minutes, 16 seconds from overseas and you cannot differentiate the overall profitability as we mentioned earlier also that there 19:23 19 minutes, 23 seconds were areas when we import those materials that we process overseas into India for for further processing because 19:31 19 minutes, 31 seconds Indian market is better. So the profitability would keep on changing but just for your knowledge around 72% of the profits uh revenue came from India 19:40 19 minutes, 40 seconds and uh 28% of the profit or the revenue came from overseas. 19:47 19 minutes, 47 seconds So as for profit profits also 76% was from India and 24% was from overseas. 19:55 19 minutes, 55 seconds Great sir thank you so much and all the best. Thank you. 20:02 20 minutes, 2 seconds Thank you. 20:06 20 minutes, 6 seconds Our next question come from the line of Sukrit Deepart from Eyesight Fra Private Limited. Please go ahead. 20:11 20 minutes, 11 seconds Uh good afternoon team. Uh as as Gravita scales it recycling operations across lead aluminium and plastics. How do you 20:20 20 minutes, 20 seconds see capacity utilization and product mix evolving over the next one to two quarters? Specifically, what technical levers such as process automation, 20:28 20 minutes, 28 seconds backward integration or efficient improvements are you using to enhance uh the process and maintain global 20:36 20 minutes, 36 seconds competitive competitiveness while maintaining ESG commitment. That's my first question. I'll ask you second question after this. Thank you. 20:44 20 minutes, 44 seconds Yeah. So, uh uh if you look at uh our best capacity uh utilization, it's in India more than 90% uh capacity 20:52 20 minutes, 52 seconds utilization is there. Uh so uh um incidentally we also have our own project division which works with the uh 21:02 21 minutes, 2 seconds operational division to keep on reinventing things on how uh uh processing is being done, how to bring in automation, how to improve 21:10 21 minutes, 10 seconds technology. Uh and that is why in terms of our operational cost and yield, we are better than the competitors across 21:18 21 minutes, 18 seconds the globe. uh and not only do we use our own uh plant and machinery, we also supply uh turnkey solutions to uh people 21:26 21 minutes, 26 seconds doing lead and aluminium recycling across the globe. So that gives us an edge as compared to all our competitors. 21:33 21 minutes, 33 seconds Uh and what was your other question sir? 21:37 21 minutes, 37 seconds Uh my other question is to Mr. Mr. Sunni uh with margins uh supported by cash uh by steady cash cash flow. How are you 21:46 21 minutes, 46 seconds planning to sustain profitability while funding uh expansion into new recycling verticles? From a technical standpoint, 21:53 21 minutes, 53 seconds what is your framework for uh managing working capital cycles, hedging raw material price volatility and optimizing 22:00 22 minutes capital allocation to ensure ROE stays steady over the medium term. Thank you. 22:06 22 minutes, 6 seconds Uh sir I can answer your question because uh you know uh this has been the policy of the group that whatever new vertical we would go into or whether 22:14 22 minutes, 14 seconds whatever brownfield expansions also we do should meet one of the criterias and that is the return on investment of around 25% from all our uh new ventures. 22:26 22 minutes, 26 seconds So that is intact and that is why whatever uh products we choose whether it is currently lead aluminium plastic or going forward we we are planning to 22:34 22 minutes, 34 seconds go into steel alum uh steel paper lithium ion we would ensure that it 22:41 22 minutes, 41 seconds meets this criteria of 25% ROC uh so that that uh remains the core of 22:48 22 minutes, 48 seconds uh the the business strategy that we have but overall on the funding side we we plan to you know uh spend 22:57 22 minutes, 57 seconds approximately 1 1200 crores in next two to three years for capex and uh approximately 1,500 crores will be 23:04 23 minutes, 4 seconds needed for working capital. So uh we have uh uh something in liquidity which we generated through QIP in last year 23:13 23 minutes, 13 seconds and uh remaining is to be funded from uh from the internal acrals which we generate as cash flow in next two to 23:20 23 minutes, 20 seconds three years and additional uh additionally we may take some debt uh to to a limited extent uh where we uh we 23:30 23 minutes, 30 seconds plan to raise some debt up to some some some limits within some limits. So we are fully uh confident of you know uh 23:39 23 minutes, 39 seconds taking the this growth uh fully funded from internal networks and liquidity we have. 23:47 23 minutes, 47 seconds I think the last part was very important. Thank you for the giving us. Thank you. 23:54 23 minutes, 54 seconds Our next question come from the line of Anikit Madwani from Stepra Capital please go ahead. 24:02 24 minutes, 2 seconds Hello am I audible? Hello. Yes. Yes. Yes, you are sir. 24:07 24 minutes, 7 seconds Yeah. So, hi. Uh I just want to know the uh volume uh generated this quarter. I mean in lead aluminium and plastic as 24:16 24 minutes, 16 seconds you mentioned there is a decline in volume in aluminium. So could you just uh clarify on the numbers 24:22 24 minutes, 22 seconds number can you so the the lead uh total quantity that we've sold in uh lead is around 46,269 24:30 24 minutes, 30 seconds tons. uh which sold around 3,500 tons of aluminium, 3,550 tons and 3,160 24:38 24 minutes, 38 seconds tons of plastic uh scrap. So total overall numbers are 52,982 tons, 24:47 24 minutes, 47 seconds okay? And uh so uh have we uh recognized any revenue from rubber or lithium ion 24:55 24 minutes, 55 seconds segment? I mean your is is not functional right now. It will 25:02 25 minutes, 2 seconds probably come in this quarter. The consent to operate for lithium is also expected to come uh in the next couple 25:12 25 minutes, 12 seconds of days probably it's in process whereas rubber definitely currently we are just using it for in-house consumption only. 25:20 25 minutes, 20 seconds So there has been no revenue coming from rubber. Yeah, very it's a very significant revenue which is coming from 25:28 25 minutes, 28 seconds our Romania uh facility which is just started in this quarter itself which is almost three and a half cr in this 25:35 25 minutes, 35 seconds quarter itself but uh going forward we have plans to scale up this uh Romania facility also Chin Rabar 25:43 25 minutes, 43 seconds okay got it got it and uh uh uh so you uh previously mentioned that you're uh targeting to achieve 25% in 25:53 25 minutes, 53 seconds board exams So uh that should be uh reflected in your top line as well right as uh 90% approach 90% of your revenue 26:01 26 minutes, 1 second comes from the lead segment. So here I can see uh in the last three quarters you have achieved around 3,000 or crows. 26:10 26 minutes, 10 seconds So what are you expecting to grow in Q4? 26:14 26 minutes, 14 seconds Uh uh sir there are two things here. I mean although when we talk about volumes we generally talk about uh the 26:22 26 minutes, 22 seconds production volumes because as I mentioned earlier that some of the material that we produce in our Africa plants when there is arbitrage 26:29 26 minutes, 29 seconds opportunities we move that material into India and process it again here. So it gets eliminated when we talk about the overall uh revenue growth in terms of 26:38 26 minutes, 38 seconds volume. uh so but if you if you uh if you consider that then we have grown at around 8 to 9% overall in uh if you if 26:46 26 minutes, 46 seconds you don't eliminate that part uh in Q4 as I mentioned that we are expecting some uh some expansions to take place 26:55 26 minutes, 55 seconds capacity expansion to take place so uh because of that we would see some volume increase coming in the Q4 27:03 27 minutes, 3 seconds okay so you sorry to interrupt you sir but please rejoin the queue for more questions Thank you. Our next question come from 27:11 27 minutes, 11 seconds the line of Kunal Devindra Kotari from Noama Wealth Management. Please go ahead. Yeah. Uh thank you for the opportunity. 27:19 27 minutes, 19 seconds So my first question is that uh we are adding up around 125 KT in uh of lead in quarter for FI26. 27:29 27 minutes, 29 seconds So by when uh you think we can optimize fully uh does it take a quarter or two 27:36 27 minutes, 36 seconds or uh we can ramp up it fully? This is my first question. 27:40 27 minutes, 40 seconds In in H1 uh next year we'll be able to ramp up it uh some of the volumes will start coming from Q4 itself but major uh 27:49 27 minutes, 49 seconds incremental volume will start coming from Q1 and Q2 of next financial year. 27:55 27 minutes, 55 seconds So by Q2 we can we will be able to fully ramp up. Absolutely sir. 28:02 28 minutes, 2 seconds Okay sir. So second question is on capex. So we did around 125 cr capex uh 28:08 28 minutes, 8 seconds in first 9 months but uh uh but trend what we are seeing is declining from around 650 million in quarter 1 400 28:17 28 minutes, 17 seconds million in quarter 2 and now 200 million in quarter 3. So what is the specific reason for the declining trend and 28:25 28 minutes, 25 seconds secondly you had target of around 200 C of capex for the entire FI26. So how 28:32 28 minutes, 32 seconds much uh you know uh you think that it is achievable uh and adding to that uh by 28:40 28 minutes, 40 seconds FI28 as you mentioned the total capex will be higher of 1200 crores. So with this declining trend, how you see that 28:48 28 minutes, 48 seconds you will be able to catch up and uh uh you know achieve this target. 28:55 28 minutes, 55 seconds Uh um um I couldn't hear your first question uh properly but to answer your second question, we've already done a 29:02 29 minutes, 2 seconds capex of around 125 crores till now and we are expecting it to cross 200 crores 29:09 29 minutes, 9 seconds by Q4. So we will meet the targets that we've set for FI26 for capacity expansion. 29:21 29 minutes, 21 seconds Okay. 29:22 29 minutes, 22 seconds And the second thing sorry and the second thing is that you should also look at the total capacity rather than the capeex done because in some of the 29:30 29 minutes, 30 seconds cases we have done uh capacity expansion in brownfield projects rather than green field projects. So the capeex required 29:37 29 minutes, 37 seconds to do that has been lower than what we had envisaged earlier. So that is probably the reason why the cape is 29:44 29 minutes, 44 seconds lower but the capacities would be in line with what we have told uh that would happen by Q F28. 29:53 29 minutes, 53 seconds So in a specific reason that bulk of the capex is coming in quarter 4. 29:59 29 minutes, 59 seconds Sir, so some of these capex was supposed to come in Q2 also but as I mentioned there have been some delay from our side 30:07 30 minutes, 7 seconds in terms of setting the plant up and then there have been some delays uh for getting those approvals also otherwise 30:14 30 minutes, 14 seconds some of these fix was expected in the Q Q2 and Q3 also but there have been some delays we we admit that. 30:24 30 minutes, 24 seconds Okay thank you sir all the best. 30:27 30 minutes, 27 seconds Thank you ladies and gentlemen. In order to ensure that the management will be able to address all the question from the 30:35 30 minutes, 35 seconds participant in the conference call, kindly limit your question to two question per participant. If you have a follow-up question, please rejoin the queue. 30:44 30 minutes, 44 seconds Our next question come from the line of Saga from Spark PWM. Please go ahead. 30:50 30 minutes, 50 seconds Uh yeah. Uh thank you so much for the opportunity and uh congratulations sir for uh better than expected margins 30:57 30 minutes, 57 seconds actually. Uh now my uh first question was uh related to actually our capex you 31:05 31 minutes, 5 seconds highlighted we incurred around 125 crores in capex. So just wanted to clarify one thing. The 30,000 tons 31:13 31 minutes, 13 seconds additional capacity in lead has it been uh which you highlighted in Q2 has it been fully commissioned in 31:21 31 minutes, 21 seconds this quarter and another one 45,000 tons of lead which was going to come up in Q4. So is it on track? So just clarify 31:30 31 minutes, 30 seconds on on first the my first question is this on the capex front then I'll highlight my second question. 31:36 31 minutes, 36 seconds Yeah. So the so to answer your question the uh one plant in Japur we expecting a capacity increase of 45,000 tons by Q4 31:45 31 minutes, 45 seconds of this year and in Mundra we are expecting a 80,000 ton capacity in Q4 31:52 31 minutes, 52 seconds further further increase of 80 so in all by inol in this Q3 uh the 31:59 31 minutes, 59 seconds another 30,000 tons has already been commissioned in the phase one lead expansion 32:07 32 minutes, 7 seconds Q4 125,000 tons of lead capacity expansion would be expected not in Q3 Q4 32:16 32 minutes, 16 seconds okay so basically by Q4 one 120 1 lakh 25,000 tons will be commissioned by Q4 32:23 32 minutes, 23 seconds FI26 that you're highlighting right yes yes okay okay and so and in our plastics and 32:33 32 minutes, 33 seconds aluminum there is also some sort of capacity expansion also. So uh uh is it 32:40 32 minutes, 40 seconds safe to assume that the capacity expansion will be done in these two segments also or or only lead you are planning to expand? 32:48 32 minutes, 48 seconds No not in this year but next year definitely there are some capacity expansion in aluminium the capacity 32:56 32 minutes, 56 seconds expansion we are holding up because we want to get a MCX approval first. uh so 33:02 33 minutes, 2 seconds as uh Navin Gi mentioned that we are expecting it by Q one of next year and then we will start uh starting 33:10 33 minutes, 10 seconds expansions in aluminium uh capacities but plastic capacities would start happening in next year also 33:18 33 minutes, 18 seconds and in in addition to this we are also capacity in India uh in next year and 33:24 33 minutes, 24 seconds lithium oil also is expected in Q4 so all these capacities would come in next year. 33:33 33 minutes, 33 seconds Okay. Okay. My uh second question was related to the plastic segment. Plastic segment we are running at low capacity 33:41 33 minutes, 41 seconds utilization but our margins are have come very uh friendly actually. So the capacity utilization hovers at around uh 33:50 33 minutes, 50 seconds around 40% for if we compare these 9 months actually. So uh going forward I 33:57 33 minutes, 57 seconds wanted some color on the plastics demand and on the kind of products that we are dealing in this segment and what is the 34:04 34 minutes, 4 seconds outlook going ahead as well in this segment. 34:08 34 minutes, 8 seconds Um sir, so uh as I mentioned that plastic uh uh growth will all depend on how uh the industry would uh take to 34:17 34 minutes, 17 seconds secondary plastics going forward because most of the industry is not using secondary plastic for their primary packaging. Uh they are using it for 34:26 34 minutes, 26 seconds secondary second secondary or tertiary packaging but primary packaging has yet not started in most of the cases. So 34:34 34 minutes, 34 seconds we are targeting that segment because that is more profitable compared to other segments and it's a slow process in the sense that you have to develop 34:43 34 minutes, 43 seconds that product you have to start using testing those products start using those product for for years before you give a 34:51 34 minutes, 51 seconds go ahead to start using that product on a regular basis. So it's it's a it's a slow process uh but we are very confident we are making inroads into 34:59 34 minutes, 59 seconds this uh we developing new products for new customers uh and we are very hopeful that uh although the direction is right 35:07 35 minutes, 7 seconds but the moment it will start happening it will just take off I mean but currently you can expect a slow growth of around 8 to 10% for the next couple 35:16 35 minutes, 16 seconds of quarters and then probably we can see an increase. 35:20 35 minutes, 20 seconds So can you highlight what are the products that that you are planning to make in plastic it is PP granules or what kind of products 35:29 35 minutes, 29 seconds it's so we are making PP granules but that is specific to the customers requirement of their their packaging requirements. So 35:36 35 minutes, 36 seconds for example Asian paints require sec recycled plastic for their buckets or 35:43 35 minutes, 43 seconds battery manufacturers require PP granules for their battery boxes and so on so forth. So all the brand owners uh 35:51 35 minutes, 51 seconds require different kind of products and it's it's it's a little difficult to develop those products from secondary plastic. Uh but we working on with some 36:01 36 minutes, 1 second of these OEMs and developing products for them. 36:05 36 minutes, 5 seconds Okay. Okay. Fine sir. Thank you so much and I'll come back in the queue. Thank you so and all the best. Thank you. 36:14 36 minutes, 14 seconds Next question comes from the line of Vinak Curry from Ponent tribe. Please go ahead. 36:22 36 minutes, 22 seconds Uh hi sir thank you for the opportunity. Um so my question was on the lead volume growth. Um so um what what we are 36:30 36 minutes, 30 seconds selling what we are selling in the export market uh we are mostly selling to South Korea uh UAE but uh um 36:40 36 minutes, 40 seconds according to some reports the lead volumes uh demand in these countries are uh saturated and thus uh many of our 36:49 36 minutes, 49 seconds peers are starting to sell a big chunk of their lead volumes to Singapore and 36:56 36 minutes, 56 seconds the status just sitting there. So why are we not uh selling our volumes to uh these traders uh sitting in Singapore 37:04 37 minutes, 4 seconds and and uh do you see any benefit to selling uh selling your volumes in Singapore because of the demand saturation in these countries? 37:15 37 minutes, 15 seconds Uh sir currently our volumes are so low that even if there is a decreasing demand uh we'll be able to sell all the 37:22 37 minutes, 22 seconds material that we produce or manufacture to to the OEMs directly in in Southeast 37:32 37 minutes, 32 seconds Asia in generally in Singapore you sell it to traders and not directly to OEMs which does not give you the the higher 37:40 37 minutes, 40 seconds margins that we get and and our target is to keep selling 70% to the OEMs and 30% to the traders. Um currently we have 37:49 37 minutes, 49 seconds long-term tie-ups with u major OEMs also and some of the biggest uh traders also 37:56 37 minutes, 56 seconds whether it is traffic glenco the um all we we work with almost all the traders and we work with almost all the major 38:05 38 minutes, 5 seconds OEMs with within India also and uh outside India also uh and whatever products we are making we are just trying to sell it at the highest price. 38:15 38 minutes, 15 seconds So if there is any pressure from those OEMs then we may think of shifting it to other geographies but till the time we 38:24 38 minutes, 24 seconds getting enough orders from them which can fulfill all our uh production then uh we we don't need to go to these uh 38:31 38 minutes, 31 seconds other markets we want to maximize the profits selling it to the high highest bidder basically 38:38 38 minutes, 38 seconds so so you're not seeing any demand saturation uh from these OEMs for entry and like comfortably you could maybe push in the incremental volume from your capacity to these. 38:48 38 minutes, 48 seconds So, and then I mean we also have applied to LME and 38:55 38 minutes, 55 seconds uh we we uh probably would get our LM license also 39:01 39 minutes, 1 second in in Q4 expected the license to get we are expecting the license in Q4 itself. 39:08 39 minutes, 8 seconds Uh so once that license is there then we can sell any amount uh on the exchanges also. Currently we are selling it at M6 39:15 39 minutes, 15 seconds and in future we would have LM exchanges also as our market but that said it gives you lesser volumes I mean lesser 39:24 39 minutes, 24 seconds realiz sell to exchanges rather than sell directly to the OEMs. So we prefer to sell it to the OEMs and if there is 39:31 39 minutes, 31 seconds any pressure in the future then LM exchanges are there for you to sell to. 39:37 39 minutes, 37 seconds So but we don't see no no no in the near future we don't see any pressures at all whatever we are 39:44 39 minutes, 44 seconds producing there is enough market available both in India as well as overseas uh which can take our products 39:54 39 minutes, 54 seconds sure that answer thank you thank you our next question come from the line of 40:01 40 minutes, 1 second Sharda from Punara Investment Advisors please go ahead Uh hi sir thank you for the opportunity. 40:09 40 minutes, 9 seconds I just had one two questions. Uh first was what was the percentage of revenues from excite industries in the last quarter? 40:20 40 minutes, 20 seconds So excite is very small portion we do because we have just started with excite 40:26 40 minutes, 26 seconds but uh going forward uh we are working both models supplying directly to excite also and we are taking some scraps also 40:34 40 minutes, 34 seconds uh like we do with Amaraja. So uh the volumes will grow significantly uh in next upcoming year 40:43 40 minutes, 43 seconds but currently it is like lower single digit kind of numbers right it's not in the it's not in the top 10 40:49 40 minutes, 49 seconds customers of gravita currently okay and it continues to be it will grow going forward 40:57 40 minutes, 57 seconds sorry sir yeah it is going sir again as I mentioned that we would uh so the the overall requirement of 41:06 41 minutes, 6 seconds lead is more than uh what we produce. So we will keep on selling to the customers where we get the highest realization. Uh 41:14 41 minutes, 14 seconds so for us currently there are better opportunities. 41:19 41 minutes, 19 seconds If if we get better opportunity from excite or when we grow our volumes uh more than what we can currently uh serve 41:26 41 minutes, 26 seconds then in that those cases we may look at other OEMs also in future. 41:34 41 minutes, 34 seconds Okay. Okay. Uh got it sir. Thank you so much. 41:43 41 minutes, 43 seconds Thank you. 41:45 41 minutes, 45 seconds Our next question come from the line of Gorosha from Nitya Capital. Please go ahead. 41:53 41 minutes, 53 seconds Hello. Can you hear me? Yes sir. Yes we can. 41:56 41 minutes, 56 seconds Yeah. Yeah. Yeah. Thank you for the opportunity. My question was more on the volume. So while we see that the volume 42:04 42 minutes, 4 seconds is remaining uh stagnant over the last few quarters between 50 50,000 tons and 42:09 42 minutes, 9 seconds 55,000 tons and we are increasing uh capacity in terms of volume uh how how 42:18 42 minutes, 18 seconds do we calculate the capacity utilization at 90%. 42:23 42 minutes, 23 seconds uh so the volume is constant because the capacity increase has not taken place in India and that is why we running it at 42:32 42 minutes, 32 seconds an optimal capacity of 90%. Generally the sorry the optimal capacity is even less than that but because there is 42:40 42 minutes, 40 seconds enough scrap available and enough demand from the customers we currently running it at 90% of capacities in India and we 42:47 42 minutes, 47 seconds are increasing the capacity so that uh because we have scrap availability and we can manufacture those uh those 42:56 42 minutes, 56 seconds products uh but we lack the capacity so once the capacity is there we can use it further to make more products in in future. 43:07 43 minutes, 7 seconds So so can I understand that the overseas capacity is not getting fully utilized for now. 43:13 43 minutes, 13 seconds Uh so overseas capacities we generally keep a higher capacity in overseas locations because scrap availability is 43:22 43 minutes, 22 seconds not uh continuous and in our case uh the capacity is not a constraint uh should not be a constraint because you know 43:30 43 minutes, 30 seconds it's a uh the capeex to revenue is around 8 to 10 times. So we generally keep a higher capacity in overseas 43:39 43 minutes, 39 seconds locations keeping in mind that the uh that we can get uh higher uh higher uh scrap also in future and uh currently if 43:48 43 minutes, 48 seconds you look at overseas capacity utilizations uh it is at around 9 65%. 43:54 43 minutes, 54 seconds So basically the overseas capacities because we we are not able to import in those countries. So it is mostly dependent on the local scrap. So in 44:02 44 minutes, 2 seconds India as compared to others other other countries India we can import the scrap. 44:07 44 minutes, 7 seconds So uh that is the reason we are increasing the capacity in India. Uh we can import overseas also we can take domestic also. So that is the reason India is looking more volumes. 44:20 44 minutes, 20 seconds Understood. Thank you sir. And also as as as we mentioned earlier that we are importing some of our scraps from 44:28 44 minutes, 28 seconds overseas locations into India because there is a better arbit arbitrage opportunities. So in that case also some 44:34 44 minutes, 34 seconds of the uh overseas capacities remain unutilized. 44:40 44 minutes, 40 seconds Understood. Understood. Thank you so much. Thank you. 44:47 44 minutes, 47 seconds Our next question come from the lineup. 44:48 44 minutes, 48 seconds Sumant Kumar from Motila Lwal Financial Service Limited. Please go ahead. 44:52 44 minutes, 52 seconds Yeah. Hi. My first question is uh any impact and can you quantify the uh new labor labor law for us? 45:02 45 minutes, 2 seconds Uh sir u um I um currently we don't uh 45:09 45 minutes, 9 seconds see any uh impact but definitely the impact would come from the the recalculation of graity and leavein 45:16 45 minutes, 16 seconds catchment for the labor and we are expecting a overall in future going forward we we expect a overall impact of 45:23 45 minutes, 23 seconds around 42 crores going downwards sorry this year not not not in in in the 45:32 45 minutes, 32 seconds In this in this year the total impact of this amount was approximately 4.2 crores out of which 3.5 crores was pertaining 45:40 45 minutes, 40 seconds to previous years and roughly uh 60 to 70 lakhs was pertaining to these nine months. So this 4.2 2 you are talking 45:49 45 minutes, 49 seconds about for annual right for annual number absolutely okay okay so the FI27 we can see this kind of impact correct 45:57 45 minutes, 57 seconds right right right okay and then the next question is regarding aluminium I have seen a 46:03 46 minutes, 3 seconds significant decline 50% decline and 5% growth in lead side so what is happening in aluminium why our uh growth is 46:12 46 minutes, 12 seconds significantly down since volume growth So uh we mentioned earlier that there 46:20 46 minutes, 20 seconds has been some uh increase in uh aluminium prices uh and when such uh 46:27 46 minutes, 27 seconds things happen then the the scrap dealers tend to withhold the scrap and don't uh 46:33 46 minutes, 33 seconds sell it to the recyclers and this call it stacking of scrap availability and that has led to lower volumes in the 46:41 46 minutes, 41 seconds quarter but going forward we we we are expecting the normaly to continue and we will start getting more aluminium scrap going forward. 46:51 46 minutes, 51 seconds Okay. And that is why we have seen a margin expansion from 10 rupees per kg to 14 rupees per kg because of rising aluminum prices. 46:58 46 minutes, 58 seconds No no it's it's around the same s 14 rupees per kg was uh even in last quarter we we had around 14 rupees per 47:06 47 minutes, 6 seconds kg. So this is the 10 rupees was in plastic not in aluminum. 47:15 47 minutes, 15 seconds Okay. Sorry. I Okay. Yeah, it was 20 rupees. Yes. 47:22 47 minutes, 22 seconds Thank you sir. If you follow it was specifically higher because of uh increase in uh aluminium prices last 47:31 47 minutes, 31 seconds year because we imported a lot of material into India and because of that there was an increase in the overall profitability coming out of higher prices of aluminium. 47:40 47 minutes, 40 seconds Profit in alium has gone down. Y sorry profitility in aluminium has gone down Y. 47:49 47 minutes, 49 seconds Yes sir. Okay. Thank you. 47:55 47 minutes, 55 seconds Thank you. Our next question come from the line of Sumangal Neatia from KOTC Securities. Please go ahead. 48:08 48 minutes, 8 seconds Sangal you may please proceed ahead with your question. 48:12 48 minutes, 12 seconds Yeah. Uh good afternoon sir. Uh thank you for a chance. Uh most of the questions are answered. I just want to know uh excuse me if I've missed. Is it 48:20 48 minutes, 20 seconds possible to give some volume guidance for FI27 given that we have such significant capacity addition and uh a decent 48:28 48 minutes, 28 seconds visibility on scrap uh and I mean if you look at last four five years now our volume kagger assuming a similar some ramp up in 48:38 48 minutes, 38 seconds fourth quarter for last five years our kagger of volume is around 16 17% now versus 25% guidance so how how fast we 48:46 48 minutes, 46 seconds can catch up over the next one year to kind of get the kagger back as per our long-term target. Uh so I think guidance 48:56 48 minutes, 56 seconds for 27 volumes across division would be very helpful. 49:01 49 minutes, 1 second Uh so u uh as as we are mentioning that there may be some uh volatility in terms 49:10 49 minutes, 10 seconds of uh uh this growth uh volume growth on a year-on-year basis but overall our 49:17 49 minutes, 17 seconds target of 25% remains intact. uh and but more than that we we talk about 30 to 35% growth in the bottom line numbers 49:26 49 minutes, 26 seconds that is the every numbers are the bad numbers because you know as I mentioned that uh sometimes although the volume that we've done is higher but it does 49:34 49 minutes, 34 seconds not reflect in the in the overall consolidated statement because some of the materials we move from Africa into 49:41 49 minutes, 41 seconds India so the overall topline numbers may vary but uh you can expect the same kind 49:47 49 minutes, 47 seconds of bottom line numbers of um uh 30 to 35% increase in uh Avita uh numbers uh 49:55 49 minutes, 55 seconds uh in next year and then going forward also. 49:59 49 minutes, 59 seconds Okay. And sir when do we start uh expecting contribution of external sales of rubber division uh from which quarter? 50:08 50 minutes, 8 seconds So as Suni mentioned there was some contribution from rubber coming in last quarter also but it was not significant. 50:15 50 minutes, 15 seconds So it was not shown in the in in the segment wise numbers but from next uh quarter onwards we will start sharing 50:22 50 minutes, 22 seconds the uh uh the numbers for also understood and sir in the past we've talked about 50:30 50 minutes, 30 seconds I'm sorry to interrupt you sir but please rejoin the sure sure thank thanks a lot thanks thank you 50:38 50 minutes, 38 seconds our next question come from the line of nitra despand from mai shar khan please go ahead 50:46 50 minutes, 46 seconds Hello, thank you operator for giving this opportunity and thank you management. Uh just would like to ask you there are the global headlines and 50:54 50 minutes, 54 seconds the geopolitical issues which are going in the global front. So definitely the commodity prices are very volatile just like other the non-ferous metal is 51:02 51 minutes, 2 seconds specifically we have seen lead aluminium all that stuff. So any other kind of a hedging that you have opted and how much 51:09 51 minutes, 9 seconds would be the percentage and what would be the impact on the overall margins can you please brief and secondly if you can 51:16 51 minutes, 16 seconds uh any of the plans for copper addition in this craft uh just like as you have mentioned the rubber paper steel lithium 51:24 51 minutes, 24 seconds they are going to get into this so by any chance a copper zinc or nickel the non-fer segment thank you 51:32 51 minutes, 32 seconds yeah so to answer your first question As far as lead is concerned, we we are totally hedged. 51:40 51 minutes, 40 seconds So there will be no impact of these fluctuations on lead both in uh I mean it may have impact on 51:48 51 minutes, 48 seconds the top line but there would be no impact on the bottom line because uh we go 100% hedged in in in lead. uh 51:55 51 minutes, 55 seconds aluminium we are looking at uh some options to hedge but currently because we do ADC2 which is not traded on any of 52:03 52 minutes, 3 seconds the exchanges so we find it a little difficult to hedge and that is why we've kept our volumes low in aluminium we are not doing any aluminium recycling in 52:11 52 minutes, 11 seconds India currently uh but the moment that hedging mechanism is in place we will start doing aluminium recycling also so 52:18 52 minutes, 18 seconds that will give us some growth in aluminium also going forward uh And uh 52:25 52 minutes, 25 seconds we uh we are looking seriously uh on all recycling verticals including solar 52:34 52 minutes, 34 seconds panels, paper, steel and specifically copper also because of the uh because of the recent uh uh ecosystem that is 52:43 52 minutes, 43 seconds happening in copper and how the copper is behaving in the and the requirement of copper going forward. So we believe that in future copper can also be one of the segments that Gravita would go into. 52:56 52 minutes, 56 seconds Okay. Thank you. Thank you so much. 53:01 53 minutes, 1 second Thank you Nitra. Our next question come from the line of Dwang Sha from Elvis Investment Managers Private Limited. 53:08 53 minutes, 8 seconds Please go ahead. 53:10 53 minutes, 10 seconds Yeah. Hi. Uh good afternoon sir. uh my first question that uh in this particular quarter we came out with a 53:18 53 minutes, 18 seconds overall you know operating margin uh improved by you know 200 bits to somewhere close to 12%. As far as 53:25 53 minutes, 25 seconds overall margin is concerned. So moving forward uh and this margin is improvement due to better price 53:32 53 minutes, 32 seconds realization or operation efficiency that is first question and secondly moving forward what kind of trajectory we can 53:40 53 minutes, 40 seconds expect it will expand or continue to remain in this particular range. 53:46 53 minutes, 46 seconds uh so from a quarter to quarter I mean generally it comes from better realization and not from improvement in 53:55 53 minutes, 55 seconds operations because it take times for operational improvement to uh take effect but uh going forward we believe 54:03 54 minutes, 3 seconds that uh what we have said is that uh in lead aluminium and plastic we have given you uh uh 54:11 54 minutes, 11 seconds per ton a beta number that would remain there and also uh some part of it has come 54:19 54 minutes, 19 seconds because there have been some better uh opportunities in India and uh that has impacted our topline we have sacrificed 54:27 54 minutes, 27 seconds some of the topline growth to get better AIA numbers also but going forward you can expect what we've already mentioned that around 19 to 20 rupees in lead 54:35 54 minutes, 35 seconds around 14 to 15 rupees in aluminium and plastic would give you around 10 to 12 rupees okay so we may continue you know similar 54:43 54 minutes, 43 seconds kind of trajectory is in an optimism way, right? 54:46 54 minutes, 46 seconds Yes. But but you can you in in future in long-term you can definitely expect some uh additional benefit coming out of better operational efficiencies and uh 54:55 54 minutes, 55 seconds uh you know better procurement uh network also and more value added products going forward but that would be 55:02 55 minutes, 2 seconds more in a long-term basis. in by Q FI28 you can expect probably.5 55:10 55 minutes, 10 seconds to 75 uh rupees per kg improvement uh per k per kg improvement in all all the 55:17 55 minutes, 17 seconds three segments okay uh and my second question uh in even uh you know as far as volume uh 55:26 55 minutes, 26 seconds growth is concerned because we in our presentation you know we are uh you know aspiration to be a 25% kind of guidance as far as our overall vision is 55:34 55 minutes, 34 seconds concerned that has been highlighted but you know somewhere we are stuck uh and in this quarter also it's been reflected that in our overall YI also we have not 55:43 55 minutes, 43 seconds been you know able to come out with a good uh volume so you know moving forward as far as FI 27 and 28 uh you 55:53 55 minutes, 53 seconds know I don't want any number but you know we you can say somewhere close to you know uh your guidance or somewhere you know uh close to uh 20% kind of 56:01 56 minutes, 1 second thing we can expect as far as total volume growth is concerned. 56:07 56 minutes, 7 seconds Yeah, absolutely. Because you know part of this volume growth as I mentioned we sacrificed because to get higher higher 56:15 56 minutes, 15 seconds profitability but part of it was because the capacity expansion that we we were planning to have in Q2 and Q3 did not 56:22 56 minutes, 22 seconds happen. There was some delay and these these capacity uh capacities are going to come in Q4 this year. So definitely 56:30 56 minutes, 30 seconds going forward in from Q1 onwards you can see some improvement coming from lead and in aluminium and 56:40 56 minutes, 40 seconds plastic also we because the capacities are there we can expect some higher number. So definitely there would be some improvement in terms of volumes coming in the next year. 56:51 56 minutes, 51 seconds Okay. Okay. Thank you sir. 56:55 56 minutes, 55 seconds Thank you ladies and gentlemen. due to the DN constraint. That was the last question for today. I would like to hand the 57:02 57 minutes, 2 seconds conference over to management for the closing comments. Thank you and over to you sir. 57:08 57 minutes, 8 seconds Thank you everyone for participating in this calls. We trust that we have addressed all your queries during the session. However, if there are any 57:15 57 minutes, 15 seconds remaining questions, please feel free to reach out to our investor relations team. Once again, we extend our gratitude to all the participants for 57:23 57 minutes, 23 seconds joining us today. Thank you and have a great day. 57:27 57 minutes, 27 seconds Thank you, sir. On behalf of Antique Stock Broking Limited, that concludes this conference. Thank you for joining us and you may now disconnect your