Greenlam Industries Limited — Q2 FY26

Greenlam Industries Ltd Q2 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=OV-ch89ymFs Published: 6 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Green Lamb Industries Limited Q2 NHY F FY26 results. This 0:09 9 seconds conference call may contain forward-looking statements about the company which are based on the beliefs, opinions, and expectations of the 0:17 17 seconds company as on date of this call. These statements are not guarantees of future performance and involves risk and 0:25 25 seconds uncertaintities that are difficult to predict. As a reminder, all participant lines will be in the listenon mode and there will be an opportunity for you to 0:33 33 seconds ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then 0:40 40 seconds zero on your touchstone phone. I now hand the conference over to Mr. Sorov Mittton, managing director and CEO of 0:48 48 seconds Green Lamb Industries Limited. Thank you and over to you sir. 0:53 53 seconds Thank you. Good afternoon friends and a very very warm welcome uh to the quarterly calls of call of green lamb 1:00 1 minute industies limited and um I'm pleased to have uh Ashoka CFO Sam 1:07 1 minute, 7 seconds from the finance team and SGA on this call and I will uh discuss I will take you through the performance and updates 1:15 1 minute, 15 seconds for the quarter as you probably have seen know we've done about we've crossed 800 crores of revenue in Q2 520 26 and the business 1:25 1 minute, 25 seconds has grown by about 18.7% on a year-on-year basis and even at the gross margin levels we we've done about 54.6%. 1:35 1 minute, 35 seconds So one of the highest we've done uh in terms of gross margins. Uh, EITA also we did uh we crossed 100 crores and 1:42 1 minute, 42 seconds obviously EITA was impacted uh due to forex losses and you know still small losses in the chipboard and the uh 1:49 1 minute, 49 seconds plywood business and that was impacted also due to the forex and higher depreciation interest considering the fact that we have uh plants capitalized 1:59 1 minute, 59 seconds in FI25 and FI24 and FI23. 2:03 2 minutes, 3 seconds If you go segment wise in the laminates business uh revenue gross margins a bit I think across all the categories we did 2:12 2 minutes, 12 seconds very well in Q2 and uh both domestic and international markets have done well I think international done slightly better 2:20 2 minutes, 20 seconds than domestic for us in Q2 and uh even uh so on the laminates business we've 2:28 2 minutes, 28 seconds also announced a brownfield expansion of 2 million sheets and boards This is two lines of laminates we're expanding at 2:35 2 minutes, 35 seconds our facility at uh Andhra Pradesh Nidopeta and these uh two lines or 2 million sheets and boards will generate 2:43 2 minutes, 43 seconds about in the range of 375 to 4 cr of revenue. We expecting commercial production in Q4 of FI27. 2:53 2 minutes, 53 seconds So that's on the laminates business. Now uh in the chipboard business like we said previously with the products being 3:01 3 minutes, 1 second very well received in the market. So from a product quality performance uh decor range uh I think there's very good feedback from the market. The plant side 3:10 3 minutes, 10 seconds is quite well settled and we continue to uh build this chipboard business. So we are focusing on uh completing the 3:17 3 minutes, 17 seconds channel appointment wherever there are gaps focusing on secondary sales specifications you know streamlining or 3:24 3 minutes, 24 seconds expanding business with the furniture makers and the OEMs and we are hopeful that the business will keep uh improving in the time to come on the plywood 3:33 3 minutes, 33 seconds business too. I think we said this earlier the product feedback is very well and we've added few more markets uh 3:39 3 minutes, 39 seconds uh in FI 26 in eastern India and western India and gradually we are seeing traction the growth in ply business in 3:47 3 minutes, 47 seconds Q2 has been uh has been pretty decent also I think grown about 45 50%. 3:52 3 minutes, 52 seconds uh the business of uh in the flooring business also become a bit positive. The door business also has grown you know in 4:01 4 minutes, 1 second Q2. The veneer business also has become a beta positive. So by and large if you see in Q2 I think across uh the three 4:08 4 minutes, 8 seconds large categories and even the smaller categories I think there's improvement in uh revenues volumes uh realization 4:17 4 minutes, 17 seconds gross margins um you know product side you know things have also gone well with the various launches we've done in Q2 4:25 4 minutes, 25 seconds and in H1 the working capital days have also you know uh we've done reasonably well there we at about 27 days in Q2 do 4:34 4 minutes, 34 seconds despite the fact that in plywood and chipboard we still have you know slightly disproportionate working capital days because sales are yet to 4:42 4 minutes, 42 seconds settle in we managed to reduce about 50 odd crores of debt cash flow from operations have also been healthy so so 4:48 4 minutes, 48 seconds by and large I think across the business I think we've moved ahead like we said earlier uh this year is a year of 4:56 4 minutes, 56 seconds execution for us because we are freed from all the expansion which we did over the last 3 years and there's complete focus on uh you execution 5:05 5 minutes, 5 seconds and I think things are going in a decent direction on the market side too. I think while there always be challenges and still are 5:14 5 minutes, 14 seconds challenges on both exports and domestic I think the teams are continuing to strive well and we hope to keep winning uh market share and keep growing the 5:22 5 minutes, 22 seconds business in a profitable manner. So so that's it from from my side. I will hand over the call to Ashoke. Ashoke will take you through all the uh financial 5:31 5 minutes, 31 seconds details and numbers which will have a open house question. Ashoke over to you. Thank you sir. Good afternoon everyone. 5:40 5 minutes, 40 seconds Let me take you through the financial performance for the quarter and for the half year. 5:46 5 minutes, 46 seconds First to the quarterly performance on a consolidated basis. Net revenue grew by 18.7% on year-on-year basis and grew by 5:54 5 minutes, 54 seconds 20% on sequential basis to 88 cr in this quarter as compared to 681 cr in Q2 last 6:02 6 minutes, 2 seconds year. Gross margin grew by 300 basis point to 54.6% 6:08 6 minutes, 8 seconds in this quarter from 51.6% in Q2 last year and grew by 150 basis point on a 6:17 6 minutes, 17 seconds sequential basis. Gross profit in absolute term grew by 25.5% 6:23 6 minutes, 23 seconds on year-on-year basis to 441 cr as compared to 351 cr in Q2 last year. AITA 6:32 6 minutes, 32 seconds margin before forex fluctuation was up by 130 basis point and stood at 13.2% in 6:40 6 minutes, 40 seconds this quarter as compared to 12% in Q2 last year. On a sequential basis, AITA margin grew by 510 basic points. 6:49 6 minutes, 49 seconds AITA before forex fluctuation in absolute term grew by 32% to 107 cr in this quarter as compared to 81 cr in the 6:59 6 minutes, 59 seconds Q2 last year. Net profit for the quarter stood at 31.8 cr as against 34.4 cr in Q2 last year. 7:09 7 minutes, 9 seconds Moving on to halfearly performance on a consolidated basis net revenue grew by 15.3% 7:17 7 minutes, 17 seconds on yearon-year basis to 1,482 cr as compared to 1,285 7:25 7 minutes, 25 seconds cr last year. Gross margin was up by 210 basis point to 53.9% 7:32 7 minutes, 32 seconds in this in in this H1 from 51.8 last year. 7:38 7 minutes, 38 seconds Gross profit in absolute term grew by 20% to 799 cr as compared to 666 cr in 7:48 7 minutes, 48 seconds H1 last year. A beta margin before forex fluctuation was down by 40 basis point 7:55 7 minutes, 55 seconds at 10.9% in this H1 from 11.3% in last year. 8:03 8 minutes, 3 seconds Abita before forest fluctuation in absolute terms grew by 11% to 161 cr as 8:10 8 minutes, 10 seconds compared to 145 cr in last year. Net profit was down by down to 16 cr in this 8:19 8 minutes, 19 seconds in this half year as against 54 cr in the last year due to higher interest and depreciation and foreign currency losses 8:28 8 minutes, 28 seconds on new project which was commissioned in the Q4 of the last year. Moving on to segmental performance. First 8:36 8 minutes, 36 seconds laminate and allied which continues to be our biggest segment for the quarter. 8:42 8 minutes, 42 seconds The revenue grew by 10.2% on year on year basis and grew by 18.6% on 8:48 8 minutes, 48 seconds sequencially bas sequentially to 658 cr from 597 cr in Q2. Last year volume saw 8:56 8 minutes, 56 seconds growth of 7.4% on year-on-year basis and 17.2% 2% on a sequential basis. Abita margin before 9:06 9 minutes, 6 seconds forex fluctuation after forex fluctuation stood at 18.7% a 9:12 9 minutes, 12 seconds growth of 400 basis point on yearon-year basis and a growth of 450 basis point on quarteronquarter basis. Productions and 9:21 9 minutes, 21 seconds volume were the highest in this quarter and stood at 5.9 million seats and booth with a utilization level of 96%. 9:30 9 minutes, 30 seconds Sales volume for the quarter stood at 5.79 million sheets on board and with an 9:36 9 minutes, 36 seconds average realization of 1,14 in this quarter 9:44 9 minutes, 44 seconds for the half yearly laminate re for the half year laminate revenue grew by 7.2% 9:50 9 minutes, 50 seconds on uh yearon-year basis to 1,213 cr from 1,131 cr in last year. Volume grew by 6.7%. 10:02 10 minutes, 2 seconds Abita margin stood at 16.6% a growth of 240 basis point on 10:09 10 minutes, 9 seconds yearon-year basis. Production volume were at 11.06 million sheets with a utilization level of 90%. Sales volume 10:19 10 minutes, 19 seconds in this half year stood at 10.73 million sheets with an average realization of 1,00 10:27 10 minutes, 27 seconds 98 per sheets and boards. Moving on to another segment plywood and allied. This segment consists of plywood decorative 10:34 10 minutes, 34 seconds veneer engineer door engineer doors and engineer floors. Revenue of this vertical uh grew by 22.2% 10:44 10 minutes, 44 seconds on year-on-year basis and grew by 16.4 4% on a sequential basis to 102 cr from 10:52 10 minutes, 52 seconds 83.9 cr in Q2 last year. Abitita loss for this quarter before forex reduced to 10:58 10 minutes, 58 seconds 3.9 cr in comparison to 6.2 cr loss in Q2 last year. 11:05 11 minutes, 5 seconds Revenue for the half year grew by 23.5% to 190 cr from 154 cr last year. Abita 11:15 11 minutes, 15 seconds loss for the quarter reduced to 12.5 cr as compared to 14.9 cr in H1 last year. 11:26 11 minutes, 26 seconds Moving on to another segment final analytes which is having chipboard as of now for the quarter revenue grew by 11:35 11 minutes, 35 seconds 54.2% on quarteron quarter basis to 47.8 8 cr in this quarter from 31 cr in 11:43 11 minutes, 43 seconds quarter 1 last quarter 1 April 26 volume saw growth of around 80% 11:51 11 minutes, 51 seconds average realization stood at 18,187 per cubic meter the production volume 12:00 12 minutes were at 26,571 cubic m and at a utilization level of 36%. 12:07 12 minutes, 7 seconds Sales volume for the quarter stood at 26,287 cubic m. 12:15 12 minutes, 15 seconds In this quarter, working capital improved by 12 days and stood at 47 days as compared to 59 days in quarter 2 last 12:24 12 minutes, 24 seconds year. Net as on 30th September stood at 995 cr as against,40 cr in the in the 12:32 12 minutes, 32 seconds June quarter with a reduction of 45 cr in this quarter. 12:37 12 minutes, 37 seconds That's all from my side. Thank you. We will now open the floor for the questions. 12:44 12 minutes, 44 seconds Thank you very much. We will now begin with the question and answer session. 12:48 12 minutes, 48 seconds Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you 12:56 12 minutes, 56 seconds may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question Q assembles. 13:07 13 minutes, 7 seconds The first question is from the line of Kesha Lahoti from HTFC securities. Please go ahead. 13:14 13 minutes, 14 seconds Hi, thank you for the opportunity. So firstly, congratulation cross strong set of numbers. First want to get a sense on laminates margin which is 18 19% for 13:22 13 minutes, 22 seconds this quarter. How so how we see this you know in upcoming quarter and what is the guidance what we see? 13:32 13 minutes, 32 seconds Yeah. Um hi Queso so laminate uh margin in this quarter is 13:39 13 minutes, 39 seconds uh around 18% before the forex fluctuation um we have given a guidance of uh around 16% on a on a longer 10ear 13:48 13 minutes, 48 seconds basis. This quarter we apart from the volume if you saw there is an increase and this quarter we had a launch of our 13:55 13 minutes, 55 seconds flagship brand of green lamb also. So as of now we will continue with the around 16% growth 16 it can go up also 14:05 14 minutes, 5 seconds depending upon the volume but let's say we continue with the 16% guidance on a on a yearly basis kind of a thing. 14:13 14 minutes, 13 seconds So for the H1 the margin remains at 15 as of now margin is 15.7% before forex uh uh fluctuation. 14:23 14 minutes, 23 seconds Got it. And in laminates laminates prices and raw material prices are stable that is of your understanding. 14:31 14 minutes, 31 seconds Yeah for the domestic yes the laminate prices for both but in the export side because of the currency movement there 14:39 14 minutes, 39 seconds is like realization some bit of realization there is a and raw materials are remains on table. 14:50 14 minutes, 50 seconds Got it. And our particle board plans remain that to possibly break even next year on a bitter front and plywood 14:57 14 minutes, 57 seconds possibly would break even by the end of this year. 15:02 15 minutes, 2 seconds So for chipboard really I think the way things are moving we think we should be able to break even 15:11 15 minutes, 11 seconds and fi uh 207 and so and ply also again we're very close. you see a little bit of more push 15:19 15 minutes, 19 seconds on the numbers and it should happen. So yes, you know, so maybe around there. 15:26 15 minutes, 26 seconds But so when you talk about you talk about the F26 as a whole or possibly you talk by Q4, FY26 just for a quarter and 15:34 15 minutes, 34 seconds on chipboard any sense on 27 you're talking H1 or H2 and last question what has been the apply loss for this quarter? 15:44 15 minutes, 44 seconds So uh if you go one like obviously we can't say anything with certaintity but I think we the 15:52 15 minutes, 52 seconds revenues are going up each quarter more or less for plywood and we we're quite close to you know a 16:00 16 minutes break even point at a bit level in plywood chipboard also the endeavor will be to do it quicker you know so we just have to see how how the business 16:08 16 minutes, 8 seconds progresses and versus Q1 a bit loss has reduced in Q2 and chipboard to so I think uh at about 45% 16:18 16 minutes, 18 seconds 45 to 50% utilization we we do a better break even we're now at about 36% 16:24 16 minutes, 24 seconds utilization but you can run the numbers yeah got it and what was the ply loss 16:33 16 minutes, 33 seconds for this quarter it is 5.8 cr 5.8 And so what is the reason not to report 16:41 16 minutes, 41 seconds Ply loss in presentation which earlier you used to report? 16:46 16 minutes, 46 seconds This is actually this too many uh things are coming in terms of that there is nothing such not to put kind of a thing. 16:55 16 minutes, 55 seconds Okay. 16:56 16 minutes, 56 seconds But having said that even for even for competition they also report decorative veneers in the plywood segment itself. 17:05 17 minutes, 5 seconds So yes, our addition is pouring indoors and most the competition also you know discloses the flush sto business or 17:13 17 minutes, 13 seconds laminate flush to business in the plywood segment. So it's not very anything uh difference we are doing maybe just the flooring gets added on 17:22 17 minutes, 22 seconds but otherwise the plywood reporting segment is all kinds of plywood decorative plywood you know flows laminated flows we are more or less in 17:30 17 minutes, 30 seconds the same instead of product level we are giving at the segment level because the number of products are increasing so we have putting on a segment level which is 17:38 17 minutes, 38 seconds like three segment mainly so we are doing at a segment level kind of 17:46 17 minutes, 46 seconds Got it. Thank you sir. That's it for my side. 17:51 17 minutes, 51 seconds Thank you. A reminder to all participants. You may press star and one to ask a question. The next question is 17:58 17 minutes, 58 seconds from the line of Rudra Shraja from I thought Financial Consulting. Please go ahead. 18:08 18 minutes, 8 seconds Yeah. Thanks for the opportunity sir. Uh am I audible? Yes please. 18:15 18 minutes, 15 seconds So my question pertains to the laminate segment. Uh last quarter also we have seen some revenue growth coming back and 18:22 18 minutes, 22 seconds this quarter also some 10 11% growth in revenues. So uh could you give us an outlook on both domestic and 18:31 18 minutes, 31 seconds international markets like what is generating this kind of a growth with segment? 18:39 18 minutes, 39 seconds So laminates we're not anything very special. So actually if you look at H1 the growth in 18:45 18 minutes, 45 seconds laminates is uh 7.2% only. So and I think uh like yeah talking the revenue growth is about 7.2%. 18:56 18 minutes, 56 seconds Uh yeah and volume is something 6.7 6.7%. So so I think it's it's more like 19:03 19 minutes, 3 seconds a routine uh you know growth you know in laminates. 19:12 19 minutes, 12 seconds And sir, how do you see this going forward for the rest of the year or maybe next four quarters? 19:20 19 minutes, 20 seconds So I think we should be able to our endeavor is to you know keep growing the business you know way it's done. So can't say much 19:29 19 minutes, 29 seconds fertility but at a overall level we said we should be able to grow 18 20% at a uh organization consolidated level basis 19:37 19 minutes, 37 seconds and I think we maintain that so I think lambda's growth should also continue at the same or slightly maybe better pace versus what we did in H1. 19:48 19 minutes, 48 seconds Got it sir. Uh and so one thing uh on the US tariffs front um the cost benefit 19:54 19 minutes, 54 seconds that laminates uh had before tariffs and uh if I compare it to that uh to the 20:02 20 minutes, 2 seconds current situation when uh US has imposed the tariffs. Could you help us understand like India still has that 20:09 20 minutes, 9 seconds cost advantage that it used to have or like Yeah. So the way to look at it is that 20:17 20 minutes, 17 seconds so of the of the increase as far as we are concerned our our business in US uh 20:24 20 minutes, 24 seconds is about I think four four 5% of our uh export business maybe 6%. So that's that's just the number you should know. 20:33 20 minutes, 33 seconds uh in terms of the increase of tariff if you take the entire tariff increase clearly the cost benefit you know will 20:41 20 minutes, 41 seconds not be there unless it's a spec specified item by an architect ID. So what we have done of the increase uh 20:50 20 minutes, 50 seconds which is impacted to us because we ship to a subsidiary which then does custom clearance and ships to the customers of the increase about 40% is something we 20:58 20 minutes, 58 seconds are passing on to the market and we're absorbing about 60% of the cost and we obviously all hopeful that something you know gets resolved in the direct issue. 21:09 21 minutes, 9 seconds So if if you take entire 50% then the cost competitiveness is not there. 21:16 21 minutes, 16 seconds Understood. So, so have we seen some capacities coming back in the US like have they started uh doing more 21:24 21 minutes, 24 seconds production inhouse or maybe outsourcing to some other countries? 21:30 21 minutes, 30 seconds So, so I don't know with certainty but like if I talk about ourselves in Q2 our sales to US has been maintained but I do 21:39 21 minutes, 39 seconds hear in the market that local production has increased and there are other countries you know who have been imposed 21:48 21 minutes, 48 seconds with lower tariffs like Turkey and you know maybe Italy and some other markets. 21:54 21 minutes, 54 seconds So so so I don't know with much certainty but but but clearly you know other countries where tariff uh tariff 22:01 22 minutes, 1 second percentage are lower you know do get a opportunity to can on kind kind of win uh some more customers or get some market share. 22:15 22 minutes, 15 seconds Understood sir. Thank you. Thanks. 22:19 22 minutes, 19 seconds Thank you. A reminder to all participants, you may press star and one to ask a question. The next question is from the line of SIC from Noama Wealth. 22:29 22 minutes, 29 seconds Please go ahead. 22:32 22 minutes, 32 seconds Hi sir, congratulations on a great set of numbers. Um, continuing with the question about 22:39 22 minutes, 39 seconds export volumes. I was just looking at the laminates export volume. They've increased sharply for both Y and Y and a 22:46 22 minutes, 46 seconds sequential basis. Uh and continuing with what you said, do we really think we should see a little bit of cooling off coming across? 22:57 22 minutes, 57 seconds When you say sharply like the value of exports uh has gone up sharply I don't know 23:05 23 minutes, 5 seconds which data are you referring to specifically. 23:10 23 minutes, 10 seconds Okay. Okay. Only referring volume volume 23:19 23 minutes, 19 seconds Q2 it'll be something like a 12 13% volume growth but in in Q1 we we 23:26 23 minutes, 26 seconds didn't do so well you know so are you referring Q1 Q are you roughing year on year so I think it's a routine 23:34 23 minutes, 34 seconds if you see a 6 month basis we had about 6 and a half 7% kind of a volume growth which is uh which is more like normal 23:43 23 minutes, 43 seconds course of doing business so I don't think any gone up sharply Unless I'm not able to understand what you are trying to ask. Uh 23:52 23 minutes, 52 seconds no this you know your volume right? Yes. 23:56 23 minutes, 56 seconds Yeah. No. So volume year on year is uh in 24:03 24 minutes, 3 seconds on a H1 basis 6.8%. In Q2 is about 13 13%. 13.2%. Yeah. 24:09 24 minutes, 9 seconds Yes. Yes. Okay. Fair enough. So this is in the normal course of business and we should probably just uh continue with 24:16 24 minutes, 16 seconds the same run it takes and not look at uh look at it at a cost basis. 24:23 24 minutes, 23 seconds Yeah, you can believe so because on a on a quarter on quarter there can be some ups and downs can happen but if you see 24:30 24 minutes, 30 seconds more on a longer term like H1 basis it is 6 7% so it is uh I believe it's a normal as of now. 24:40 24 minutes, 40 seconds Okay, understood. So, uh, second point would be in terms of realization. Uh, we've seen a drop in realization for both plywood and particle board 24:49 24 minutes, 49 seconds definition. Is there any particular reason to it or sorry your voice is not about 24:57 24 minutes, 57 seconds realization of particle board and plywood. I explained that to you. So in particle board uh there is no uh 25:04 25 minutes, 4 seconds reduction in pricing because we still this was our second you know quarter of operation of the business is just the 25:12 25 minutes, 12 seconds mix of orders between melamine chipboard and plane boards. So I think it's still in settling period while melamine 25:19 25 minutes, 19 seconds chipboard in absolute volume the numbers have been better than quarter 1 but because as you see there's been a significant volume growth you know so 25:28 25 minutes, 28 seconds we've had more plain board sales also in quarter two so just the value mix you know which is kind of uh got a bit 25:35 25 minutes, 35 seconds altered in in percent although volumes both the numbers have gone up so I think it will still take some time to settle 25:42 25 minutes, 42 seconds this mix of melamy chipboard and plain chipboard board. So, so I think for maybe a few more you know months of waters this might be a bit here and 25:51 25 minutes, 51 seconds there and then then we'll kind of settle in. Yeah. So that's on the uh chipboard. 25:56 25 minutes, 56 seconds Given flywood the relation has been uh has been down by if I can see uh it's a small d again some mix of orders you 26:05 26 minutes, 5 seconds know and because volume has gone up Q1 and Q by nearly 50 odd%. So it's again a mix of orders nothing to do with pricing 26:13 26 minutes, 13 seconds and I think I see relation gone down by 1.3% precisely but it's more routine actually. Yeah. 26:20 26 minutes, 20 seconds Okay. Okay. Thank you sir. Thank you so much. 26:24 26 minutes, 24 seconds Thank you. A reminder to all participants you may press star N1 to ask a question. The next question is 26:31 26 minutes, 31 seconds from the line of Pel Sha from Billion Securities. Please go ahead. 26:37 26 minutes, 37 seconds Yeah. Thank you so much for the opportunity. Am I audible? Yes. Yes. 26:43 26 minutes, 43 seconds Yeah. Uh so I have few questions. First being uh just wanted to understand how do you see our engineered wooden floor 26:51 26 minutes, 51 seconds and door business going forward as in how is the demand scenario. So so you know the business is growing. 27:00 27 minutes Obviously we wanted to grow at a uh faster pace you know like the the door 27:07 27 minutes, 7 seconds business uh has grown uh you know like okay you in terms of volume flooring has 27:14 27 minutes, 14 seconds been a you know a bit flattish in this quarter. So I I think it's like you know we're trying to 27:22 27 minutes, 22 seconds do better each time. So like yeah like so much but but typically with hospitality you know businesses taking 27:29 27 minutes, 29 seconds off and multiple hotels housing coming up in the country we hope this gets better. 27:37 27 minutes, 37 seconds Okay. Uh so my next question is uh with respect to our chipboard uh segment. So how do you see chipboard demand uh going 27:45 27 minutes, 45 seconds forward like do we have a good demand for chipboard in international market and uh how is our pricing in chipboard business as compared to peers. 27:56 27 minutes, 56 seconds So but uh again like it's a very open-ended question. Uh so so clearly there is a market opportunity which 28:02 28 minutes, 2 seconds exists in chipboard and market opportunity exists to win more market share from the unorganized market and 28:10 28 minutes, 10 seconds from bgas board manufacturers and also win some business from the other panel products because the at the price point 28:18 28 minutes, 18 seconds the quality the uh physical performance the dimensions uh you know which product offers brings in more value for the customer. 28:27 28 minutes, 27 seconds In general, you know, it's not as if demand is more on the supply is less. I think we are winning market share, you know, from different segments and also 28:36 28 minutes, 36 seconds with the large furniture manufacturing hopefully coming into India and furniture plays expanding capacities in India, the demand for chipboard should 28:44 28 minutes, 44 seconds go up because chipboard is a is a number one raw material as far as a panel product is concerned for furniture making especially commercial furniture which is offices and shop fit outs etc. 28:55 28 minutes, 55 seconds So yes you know so there a demand a market exists but we have to still make our own place you know for our product for our offering. Uh as far as 29:03 29 minutes, 3 seconds international market is concerned few markets will have some opportunity uh you know where where the there's a level 29:10 29 minutes, 10 seconds playing field where other players also exported to that market. So there'll be some opportunity there as as you probably are aware freight is a very 29:18 29 minutes, 18 seconds important factor in the chipboard business because it's voluminous and low value. So, so yes, it's not as it'll not 29:24 29 minutes, 24 seconds be as widespread as we've done in lit business to be very specific to fewer geographies. 29:33 29 minutes, 33 seconds Uh, sure. Thank you so much for the elaborate answer. Uh, my last question is uh how much revenue contribution do you see from laminates? 29:43 29 minutes, 43 seconds So laminates uh in H1 like Q H1 we've done about 1,200 gross you know and like 29:52 29 minutes, 52 seconds when you say revenue I don't know like Q2 we've done about 650 658 or so I think of our revenue about 80% is 29:59 29 minutes, 59 seconds laminates right so depends on how the other business scale up so I think laminates will still be a core part of the business 30:08 30 minutes, 8 seconds okay that's quite concerning thanks so Thank you. A reminder to all participants, you may press star and one to ask a question. 30:28 30 minutes, 28 seconds The next question is from the line of Bhavan Roani from Invest. Please go ahead. 30:35 30 minutes, 35 seconds Yeah. Hi sir. Bhavan side. Uh so first question on laminates. So you had mentioned about the brownfield optionalities that we had. So currently 30:44 30 minutes, 44 seconds we are at 24 million sheets right now and we are adding another 12 million sheet right. So what is the additional total capacity that we can add in at our existing locations? 30:55 30 minutes, 55 seconds So spacewise you know we can add multiple lines in Andhra Pradesh and in a factory in 31:02 31 minutes, 2 seconds Gujarat but for these two lines we don't need to do any civil construction also because we've already built a larger space when we when we set up the 31:10 31 minutes, 10 seconds factory. So you can assume you know but then the expansion process might involve several construction in both the factory 31:18 31 minutes, 18 seconds but from the land space we can comfortably add another three lines you know in Andhra Pradesh factory and maybe 31:26 31 minutes, 26 seconds three to four lines in the Gujarat factory also. So after these two lines another you know nearly you know six seven lines can also get added. 31:36 31 minutes, 36 seconds All right and kix will be somewhere around 35 to 40 crores per line. 31:40 31 minutes, 40 seconds So cape if you do civil might go up because for this line we don't need civil we don't need the energy plant we don't need to construct a resin plant 31:48 31 minutes, 48 seconds because we already built that you know in the in the phase one so uh so while it's looking attractive now but those investments have already had been done 31:57 31 minutes, 57 seconds earlier so it might let's say in the range of you know depending on what we do about 45 50 crores you know in that 32:05 32 minutes, 5 seconds going ahead all right and sir since we are running at almost 96% utilization at our 32:12 32 minutes, 12 seconds laminates plant. So do we see our volume growth limited in near-term as we peak clear utilization or we have any plans for outsourcing? 32:23 32 minutes, 23 seconds No. So there's no plan for outsourcing because the product spec and the quality standards we need we've tried in the past doesn't work out but since we have 32:31 32 minutes, 31 seconds already announced expansion uh and in the past also we've been able to utilize plants at a higher level. So our sense is that we should be you know we should 32:40 32 minutes, 40 seconds not we should be okay with a volume mode there could be a tightness for a few months maybe but by and large we should 32:47 32 minutes, 47 seconds be under control and what is the key utilizations that we can clock sir uh more than 32:54 32 minutes, 54 seconds it depends yeah it depends on the line so you know let's say off the line number of lines we have you know in the past we've gone 33:03 33 minutes, 3 seconds up to 110% also 115 also I'm being corrected 33:10 33 minutes, 10 seconds All right, sir. Got it. Thank you so much. 33:14 33 minutes, 14 seconds Thank you. A reminder to all participants, you may press star and one to ask a question. 33:27 33 minutes, 27 seconds As there are no further questions from the participants, I now hand the conference over to the management for closing comments. 33:37 33 minutes, 37 seconds Thank you friends. 33:40 33 minutes, 40 seconds Thank you for taking out the taking up the time and attending the conference. 33:46 33 minutes, 46 seconds In case you have any other query, you can reach out to us or SGA our investor relation advisor. Thank you once again. 33:54 33 minutes, 54 seconds Thank you everyone. Thank you everyone. 33:57 33 minutes, 57 seconds On behalf of Green Lamb Industries Limited, that concludes this conference. 34:01 34 minutes, 1 second Thank you for joining us and you may now disconnect your lines. Thank you.