Greenply Industries Limited — Q3 FY26

Greenply Industries Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=PluPrVgPQtA Published: 3 months ago

0:00 Ladies and gentlemen, good day and welcome to Greenly Industries Q3 FI26 earnings conference call hosted by Asian 0:07 7 seconds Market Securities Private Limited. As a reminder, all participant lines will be in the listenonly mode and there will be an opportunity for you to ask questions 0:15 15 seconds after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on 0:23 23 seconds your Touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Karan from Asian Market Securities Private Limited. Thank you and over to you sir. 0:35 35 seconds Thank you Rudra. Good good morning to all participants logging to the call. On behalf of patient market securities we welcome all to Greenly's 0:44 44 seconds third quarter and 9 months FI26 investor call. From the management side we have Mr. Manutian joint managing director and CEO Mr. Sarenda Mitel joint managing 0:52 52 seconds director and Mr. Sanjie CFO. I would like to hand over this call to Manoji for his opening comments post which we can open the floor for Q&A. Over to you Manoji. Thank you. 1:03 1 minute, 3 seconds Thank you Karan and good afternoon everyone. It is a pleasure to have you all on this call. I will be updating you on Vly's operating and financial 1:13 1 minute, 13 seconds performance for quarter 3 and 9 months FI 2026. 1:17 1 minute, 17 seconds As discussed in our previous call, the three brand communication strategy aimed at enhancing product visibility across 1:24 1 minute, 24 seconds key market segments is working well for us and showing very encouraging initial outcomes. This strategy has enabled us 1:32 1 minute, 32 seconds to deliver consistent growth in our plywood and MDF business on a year-on-year basis as well as steady ramp up in our hardware business too. 1:40 1 minute, 40 seconds Also mentioned in our previous call, we guided doubledigit volume growth in H2 FY26 across both segments and I'm happy 1:49 1 minute, 49 seconds to report that we are on track having delivered doubledigit yearonar growth in quarter 3 FY26 both in plywood and MDF. 1:58 1 minute, 58 seconds We remain confident of sustaining this momentum in quarter 4 FY26 and in the periods ahead. In our MDR business, we 2:08 2 minutes, 8 seconds successfully expanded capacity from 800 to,000 CVM. 2:13 2 minutes, 13 seconds While initial operational challenges impacted growth during the quarter, these issues have now been fully addressed. The plant is currently stable 2:21 2 minutes, 21 seconds and operating efficiently. Production in the month of January was highest ever and we are confident of a strong rebound 2:29 2 minutes, 29 seconds going forward in line with our growth expectations. 2:33 2 minutes, 33 seconds Now I'd like to share with you that we have achieved a consolidated quarterly revenue of 673.4 crores which is a 2:40 2 minutes, 40 seconds growth of 9.6% on a Y basis. Our consolidated core EITA for the quarter was 58.9 crores with a core EITA margin 2:50 2 minutes, 50 seconds of 8.7% compared to 8.2% in corresponding quarter a increase of 50 basis points. 2:58 2 minutes, 58 seconds On a 9-month basis, our consolidated revenue was at 1962.8 crores, which is a 3:04 3 minutes, 4 seconds growth of 6.7% on a YI basis. Our consolidated core EITA was at 177.3 3:12 3 minutes, 12 seconds crores, which is a growth of 4.5% on a YI basis. The core EITA margin was 9% as 3:19 3 minutes, 19 seconds compared to 9.2% 2% in 9 9 month FI25 PBT before the losses on equity 3:26 3 minutes, 26 seconds accounted investies foreign exchange gain loss as an adjustment to finance cost and exceptional items is at 117 3:35 3 minutes, 35 seconds crores for 9 month FI26 which is a 13% YI growth as against PBT of 104 crores in 9 month FI25. 3:48 3 minutes, 48 seconds Let me now share the highlights of our individual business segments. As mentioned above about our goto market strategy, we continue to experience the 3:57 3 minutes, 57 seconds demand for mid-value products during this quarter also resulting in an average relation per square meter of rupees 244. A 4.9% decrease on a Y 4:07 4 minutes, 7 seconds basis. However, on a QQ basis, there is a marginal increase from rupees 242 to 244 per square meter. In quarter 3 FYI 4:17 4 minutes, 17 seconds 26, we achieved a volume growth of 12.5% on a YI basis with a revenue of rupees 4:23 4 minutes, 23 seconds 521.7 crores. A value growth of 8.9% on a YI basis. On the margin front, our 4:30 4 minutes, 30 seconds core EITA margin remained intact at 8.4% for both quarter 3 FY26 and quarter 3 FY25. 4:39 4 minutes, 39 seconds Even though there is a drop in the realization on a Y basis on 9 month basis we have achieved 4:46 4 minutes, 46 seconds revenue of 1517 crores a growth of 5% on a Y basis. Our volume growth on 9 month 4:53 4 minutes, 53 seconds basis is 5.8% YI despite having a negative growth of 3.1% in quarter 1 FI26. 5:02 5 minutes, 2 seconds Our core EITA grew by 4.7% on a YI basis to 124 crores in 9 month FI 2026. The 5:10 5 minutes, 10 seconds AITA margin stood at 8.2% as again similar margin of last year 9 month FI25. 5:17 5 minutes, 17 seconds Moving to our MDF business, revenue in quarter 3 FI26 stood at 152 cr with volume at 48 383 CVM reflecting 5:26 5 minutes, 26 seconds yearon-year growth of 11.7% in value terms and 14.5% in volume terms. We had 5:34 5 minutes, 34 seconds a good traction on demand side in quarter 3 FI 26 but because of deficit in production during initial months of 5:40 5 minutes, 40 seconds the quarter, we had to resort to limited trading activities to fulfill the orders in hand. which resulted in a moderated 5:48 5 minutes, 48 seconds margin of 10.1% which could have been otherwise in the range of 12% for this quarter itself. 5:55 5 minutes, 55 seconds With operations now fully stabilized and running efficiently, we expect a strong rebound and are confident of achieving our margin guidance in the coming quarters including quarter 4 FI26. 6:07 6 minutes, 7 seconds We are happy to share that the board has approved an investment of rupees 400 crores towards expansion of second line of MDF in line with our earlier 6:15 6 minutes, 15 seconds commentary and our preparedness for future growth. More details in the MDF business and the expansion will be shared by Sanit later. 6:25 6 minutes, 25 seconds Moving on to our furniture and fittings JV, we have achieved a sales of 13.4 4 crores in quarter 3 FY26 achieving total revenue of 31 crores on 9 month basis. 6:36 6 minutes, 36 seconds The JV reported a PAT loss of 15 crores in quarter 3 FY26 with our share of the loss amounting to 7.7 cr and on 9mon 6:45 6 minutes, 45 seconds basis pat loss of rups 37.9 cr with our share of the loss amounting to 19 crores. Losses for the quarter increased 6:53 6 minutes, 53 seconds on a sequential basis due to increase in marketing spend as we participated in two exhibitions. 6:59 6 minutes, 59 seconds A consolidated net debt stood at 528 cr at the end of the current quarter in line with the guided capex plans. 7:06 7 minutes, 6 seconds Construction of the plywood facilities progressing at full pace with all major orders already being placed and the project remains on track. We are 7:15 7 minutes, 15 seconds confident that our debt to equity ratio will be within the guided range of 0.5 to 0.6x year end despite the announcement of new 7:22 7 minutes, 22 seconds capex. With respect to our operations at Greenfly Middle East Limited, we have further reduced exposure from USD 2.7 7:30 7 minutes, 30 seconds million to USD 1 million. As a result, our contingent liability has also decreased from rupees 24 cr 10 cr now as 7:40 7 minutes, 40 seconds on 31st December 25. Just to mention at the time of divestment this liability stood at USD 6.1 million. 7:49 7 minutes, 49 seconds With these statements, I would like to hand it over to Sanida to provide more insight on the MDF business. 7:56 7 minutes, 56 seconds Thank you, Manoji and good afternoon to everyone on the call. Our sales performance for this quarter delivered at delivered 11.7% year-on-year growth 8:05 8 minutes, 5 seconds in value terms and 14.5% year-on-year growth in volume terms. However, during the quarter, we encountered some initial 8:13 8 minutes, 13 seconds production challenges in the month of October and November, which had a temporary impact on sales and ultimately on the margins. Looking ahead to the 8:22 8 minutes, 22 seconds fourth quarter, we expect a growth of more than 20% in sales on a year-on-year basis, supported by improved margins. As 8:29 8 minutes, 29 seconds mentioned earlier by our CEO about the announcement of the second MDF line at Vadodra, I will share some updates on the same. The second line will be a 700 8:38 8 minutes, 38 seconds cubic meter per day capacity with a cost of rups 400 crores and a revenue potential of rupes 600 crores. The plant 8:45 8 minutes, 45 seconds is expected to be commissioned in the next 15 months and commercial operations to start in the next 18 months which means Q2 FY28. 8:55 8 minutes, 55 seconds Trial production of the HDF flooring line started in the month of December and we executed a few orders also but after that we faced some glitches and we 9:03 9 minutes, 3 seconds are in the mode of correction phase. and we are confident of starting commercial production by March 26. Construction of 9:11 9 minutes, 11 seconds PVC and WPC plant is going as per plan and we are confident that the commercial production will start by March 26 as per 9:18 9 minutes, 18 seconds our plan. With this I would like to open the floor for the Q&A session. Thank you. 9:25 9 minutes, 25 seconds Thank you very much. We'll now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone telephone. If 9:34 9 minutes, 34 seconds you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies 9:43 9 minutes, 43 seconds and gentlemen, we'll wait for a moment while the question queue assembles. 9:54 9 minutes, 54 seconds Our first question comes from the line of Sukrit Dartil from Eyesight Trade Private Limited. Please go ahead. 10:01 10 minutes, 1 second Good afternoon team. Uh I have two questions. My first question to Mr. 10:05 10 minutes, 5 seconds Manoj is uh as the plywood and board market continues to evolve, how is the management thinking about prioritizing 10:12 10 minutes, 12 seconds growth levers such as uh distribution expansion and capacity over the uh medium term? Among this uh which do you 10:21 10 minutes, 21 seconds believe will be most critical in uh strengthening Greenfly's competitive position and uh long-term value creation? That's my first question. I'll 10:30 10 minutes, 30 seconds ask my second question after this. Thank you. 10:32 10 minutes, 32 seconds Okay. Hi. H I uh see you know we are last last one year we are clearly working on two or three major 10:41 10 minutes, 41 seconds initiatives and I think that is what gave us a lot of confidence also that we will start now growing uh in double 10:48 10 minutes, 48 seconds digit in volume terms. In fact uh you know the way things have happened we are even looking at a better growth in in 10:56 10 minutes, 56 seconds mid- teens also going forward in the plywood business because you know we suffered a lot in between but anyway there are corrections which were 11:04 11 minutes, 4 seconds underway in the last 12 months. So one on the distribution side when you are saying there's a two-prong strategy which continuously will work in the plywood business one depth and reach. 11:17 11 minutes, 17 seconds So you know there has been a lot of work which has now started in the in the post 6 months for which there was a preparatory period of almost 6 to9 11:25 11 minutes, 25 seconds months and that's where we were confident that you know uh now we will be able to see the results and we are happy to see the the results in quarter 11:33 11 minutes, 33 seconds 3 that finally we have grown at uh you know double digit in terms of volumes maybe possibly we could have even done 11:40 11 minutes, 40 seconds better but I'm sure that in quarter four and in the year to come we'll look at even better numbers in the volume growth. So one clearly yes I mean you 11:49 11 minutes, 49 seconds know your question has the answer that distribution is key in this business and we are working a lot in terms of uh the 11:56 11 minutes, 56 seconds depth of distribution and then the range of products both because we have range of products but you know u we are somewhere we have not been able to 12:05 12 minutes, 5 seconds justify our range of products distribution across the depth and the second thing uh you know the the 12:13 12 minutes, 13 seconds business today is at a very sweet price point which is anywhere around 100 rupees or so. Somehow uh we were missing 12:21 12 minutes, 21 seconds this and uh we realized this during this year we started branding our mid-segment 12:28 12 minutes, 28 seconds brand which is Ecotech and you know we have seen good positive green shoots the moment we have started investing on the 12:36 12 minutes, 36 seconds same not only in terms of the body line of our our team but also the way the market has responded. So that is the 12:44 12 minutes, 44 seconds next growth driver for you know many more years to come and we'll continue to invest larger money on the second brand 12:51 12 minutes, 51 seconds you know I mean you know in in some time we'll be able to see that this brand for us will become the largest brand in the whole kitty. 12:58 12 minutes, 58 seconds Thank you. My second question to Mr. uh yeah thank thank you very much. My second question to Mr. San uh Mr. Sanjis is along the similar lines from a 13:08 13 minutes, 8 seconds financial uh standpoint. Can you elaborate on the key trade-offs managed during the period between growth investments, cost discipline and working 13:16 13 minutes, 16 seconds capital efficiency? How do these decision how how do these decisions influence your outlook on cash uh 13:24 13 minutes, 24 seconds creation and uh return metrics as the business continues to scale? Just want to understand uh your plan of action on this. Thank you. 13:33 13 minutes, 33 seconds So yeah uh thanks Patil. Uh see we are working on the working capital. If you see the working capital limit uh 13:41 13 minutes, 41 seconds utilization is very low in our case. Uh we are working on the uh uh 13:48 13 minutes, 48 seconds with the dealers uh dealers also to reduce their working capital and uh we are also introducing the 13:57 13 minutes, 57 seconds uh dealer dealer dealer finance. So in that in that sense uh increasing the uh 14:05 14 minutes, 5 seconds return uh ROI of the dealers also on working on that uh working working uh 14:12 14 minutes, 12 seconds increasing the working capital cycle of the dealers. So these are the initiative we have already taken. Uh on our sales 14:20 14 minutes, 20 seconds side uh we are also reducing our the depths. Uh on a expansion side we have 14:26 14 minutes, 26 seconds taken the uh steps for the uh now the internal acurals are there. We 14:34 14 minutes, 34 seconds are adding that good number of the c internal acurals on a uh capex we have 14:41 14 minutes, 41 seconds already announced. So and as the monoji said that the uh the our uh 14:50 14 minutes, 50 seconds debt equity debt equity ratio will not increase more than the 6% uh at any point of the time. 14:57 14 minutes, 57 seconds So we are managing the our depth in that way. 15:01 15 minutes, 1 second Thank you and best of luck. Just to add to that uh you know I would say that uh at an organization in the last 3 to four 15:08 15 minutes, 8 seconds years where we have concentrated yes maybe partially we are successful and partially we may not be because everything the way we think uh sometimes 15:17 15 minutes, 17 seconds doesn't works out but uh we clearly look at incremental capital output ratio okay that uh finally the investment should go 15:25 15 minutes, 25 seconds into the pockets where finally I'm I'm making I'm making better buck uh compared to my investments which is doing. So San will explain more on the 15:35 15 minutes, 35 seconds strategy of why uh you know now we are investing for the second plant of MDF and why uh you know in in west bara 15:43 15 minutes, 43 seconds because we see a lot of efficiencies which will get built up further today like from our first plant uh because of 15:51 15 minutes, 51 seconds the mix maybe you know we'll will somewhere we not be able to do more than 88 or 89% of the capacity but the moment 15:59 15 minutes, 59 seconds we put the second plant the first plant also against 88 89% can start giving us 16:05 16 minutes, 5 seconds a efficiency of maybe 93 94%. So clearly you know the the ICOR is something which we keep looking at and uh the 16:13 16 minutes, 13 seconds justification on investments uh also gets driven from the same on the working capital side. In any case uh you know if 16:21 16 minutes, 21 seconds you if you go on the on the operating side we need to improve further. We were we were much better but yes in fact in 16:28 16 minutes, 28 seconds the board level also we had discussion uh yesterday a lot on the same that uh we need to be more efficient on the working capital and take out that money 16:37 16 minutes, 37 seconds and invest more efficiently in the business. So somewhere you will see in our announcement also we have mentioned that uh you know most of our uh this 16:46 16 minutes, 46 seconds investments which we are doing should come out of internal approvals because this is that one large investments MDF 16:52 16 minutes, 52 seconds what we have uh except the plywood investments which we are talking about which is already on the way and if you look at the the next 3 years cash 17:01 17 minutes, 1 second generations which will happen it will automatically take care of our existing debt as well as the new investments. So there's a lot of semblance which we have 17:09 17 minutes, 9 seconds tried to create now in the business and uh we are following those disciplines as a company. 17:15 17 minutes, 15 seconds Thank you detailed guidance and uh best of luck. Thank you. 17:20 17 minutes, 20 seconds Thank you. Our next question comes from the line of Rishiesh Bhagat from Kotak Mutual Funds. Please go ahead. 17:27 17 minutes, 27 seconds Hi uh good afternoon. So since you spoke about that you do look at the incremental return on capital but when I 17:35 17 minutes, 35 seconds look at it what the ROC was when you were only solely green uh plywood and post that if I look at the MDF capital 17:43 17 minutes, 43 seconds allocation clearly the returns have diluted now against that backdrop how do we justify the incremental capacity 17:50 17 minutes, 50 seconds addition because we are still at 71 72% utilization the margins are pretty low so that's question one in terms of that 17:59 17 minutes, 59 seconds second is on the cape also if I look at the capital cost it's largely similar to what it was on the past so kudos to that 18:08 18 minutes, 8 seconds but just wanted to check is there considering these are largely imported is there no impact of rupee depreciation on the capital cost 18:15 18 minutes, 15 seconds so I will answer the first question rishiki case and the second question I'll leave uh sanita to explain largely 18:22 18 minutes, 22 seconds on the same so so when you look at you know the history of last five years the first thing Yes, if you look at uh green 18:29 18 minutes, 29 seconds ply definitely at that point time only with plywood business was throwing better ROC but is that the future product is that the level of risk which 18:39 18 minutes, 39 seconds we should carry in our business by being just in one product. So these last four five years for us were a lot of formatting years where we have not gone 18:48 18 minutes, 48 seconds to raise any level of capital. We have not even thought about diluting any level of capital. The whole objective 18:56 18 minutes, 56 seconds was that whatever money was there in the business how we can get more efficient on the one side where you ask this 19:03 19 minutes, 3 seconds question yes I think it's quite valid that if I only look at plywood business my ROC was better but when you look at a 19:10 19 minutes, 10 seconds combined entity today I think we have really made us risk-free by getting into three line of business and two line of 19:17 19 minutes, 17 seconds our business are now well established you know in MDF in no time has really got well established today at least we have 7 to 7 and a half% of market share 19:25 19 minutes, 25 seconds also in that not raising capital again you know it's something for sure was a discipline to take out money from the 19:32 19 minutes, 32 seconds existing business so I think from here on when you will see incrementally you will see that my my ROC overall and uh 19:41 19 minutes, 41 seconds you know and ROI will continue to invest because we have absolutely no plans at least at this point of time to uh dilute 19:49 19 minutes, 49 seconds equity or raise any level of capital so we understand that whatever ever are the means whatever is the cash flow we are generating we must make best utilization 19:58 19 minutes, 58 seconds of the cash flow now imagine if I generate cash flow in my plywood business and I don't do any investments in MDF which is a futuresled business 20:05 20 minutes, 5 seconds what will happen finally my ROC will continue to drop the only other thing what we can do is to continue to dist you know maybe distribute dividends 20:13 20 minutes, 13 seconds but sorry I'm not debating your question in terms of that MDF is wrong move my point is isn't it that the margins 20:21 20 minutes, 21 seconds current margins do they justify the investment The question was more on that front than no totally appreciate and that is where 20:29 20 minutes, 29 seconds I'm saying the margins you will start seeing on MDF also we'll get back to 16%. Yes there are certain market realities also but uh MDF again is like 20:38 20 minutes, 38 seconds a business where you will see seesaw margins maybe you know we will see times when it will go back to 20 21% and then again it will come back to around 13 20:46 20 minutes, 46 seconds 14%. So so we are we are actually quite happy that we have gone into MDF as a business. It's a futuristic product. 20:53 20 minutes, 53 seconds More and more applications we are able to see today in the market and um I think with these two line of business which is our significant line of 21:02 21 minutes, 2 seconds business plywood and MDF the company will do very well going forward. 21:07 21 minutes, 7 seconds Next question I would I would request mania to answer. Yeah I'll just add to what Manoji said. 21:14 21 minutes, 14 seconds I think uh we are seeing the ROC of the MDF business on a short-term basis and currently yes there is over capacity 21:20 21 minutes, 20 seconds there is a uh you know price fight in the market there is a you know margin wall where all the top players the margins of the at least the listed 21:28 21 minutes, 28 seconds players peers have come down but if you look at this on a 3 year or a 5 year or a 7-year period I'm quite confident that you know the ROC's will come to a 21:37 21 minutes, 37 seconds justified and respectable level and if it does not come on a long-term basis it is obviously very clear that you know people are not going to continuously 21:44 21 minutes, 44 seconds invest neither us and that green ply for us to be dominant in the wood panel space I think it was a very very 21:51 21 minutes, 51 seconds important move on to my second uh moving on to your second question I think you were you were concerned about the capex 21:59 21 minutes, 59 seconds cost with the current euro going up and the dollar going up I think we are quite confident on the rupees 400 cr capex 22:07 22 minutes, 7 seconds that we've announced uh and the capacity and we are looking at a very similar technology ology where we are looking at a German manufacturer. We're looking at 22:15 22 minutes, 15 seconds a 8 ft uh uh wide continuous line. So with with our cost that we have given, 22:22 22 minutes, 22 seconds we are very confident that we'll be able to achieve a 700 cubic meter German cont. 22:29 22 minutes, 29 seconds And yes, we have taken into account the euro cost. 22:32 22 minutes, 32 seconds Thanks. Thank you. Thank you for the replay. Pleasure. 22:37 22 minutes, 37 seconds Thank you. Our next question comes from the line of Rahan Syad from Tinetra Asset Managers. Please go ahead. Uh yeah, good afternoon to the team and 22:46 22 minutes, 46 seconds thanks for giving me the opportunity. Uh so I just one question from I just want an understanding regarding your 22:53 22 minutes, 53 seconds segmental sales strategy. So in the flywood business manufacturing sales volume of the person to decreased from 23:00 23 minutes 43% in quarter 35 24% in FY 26 quarter 3. So is this a a deliberate strategic 23:09 23 minutes, 9 seconds shift towards a more asset light trading model and how it does affect your long-term consolidated capital margin target of 9,000. Just one just one more 23:18 23 minutes, 18 seconds significant your voice was not totally clear. Are you are you saying on the on the sales 23:25 23 minutes, 25 seconds side is the question related to your sales volume uh between the premium and the economy? 23:32 23 minutes, 32 seconds Yeah. Yeah. Yeah. like manufacturing and trading order. 23:36 23 minutes, 36 seconds Oh, you're saying manufacturing and trading. Yeah. 23:39 23 minutes, 39 seconds Yeah. So, so look, you know, uh clearly it is visible that uh and and we have suffered this into the past. Okay. That 23:46 23 minutes, 46 seconds when we were very high on our trading model, we were suffering in terms of supplies, we were suffering in terms of 23:54 23 minutes, 54 seconds you know price escalations on a regular basis. Of course, that was a period when uh you know the raw material timber prices were also moving up uh 24:02 24 minutes, 2 seconds continuously. Now at least the raw material prices are much more stable. 24:06 24 minutes, 6 seconds But over a period of time you know we have also learned that if we are able to cater to larger supply from our factories that makes much more sense. 24:14 24 minutes, 14 seconds And of course you know when when in the short term when we will have a larger demand and uh our capacities internal 24:21 24 minutes, 21 seconds capacities are not adequate we can always look at ramping up the trading model. So somewhere you know we are carrying that as a additional space for 24:30 24 minutes, 30 seconds ourselves to mitigate short-term challenges in terms of hyper growth versus our own capacity that is where we are looking at that model. 24:40 24 minutes, 40 seconds Okay. Okay. And the last one just confirmation that you have said about your ODI expand stat is it working still 24:47 24 minutes, 47 seconds working properly or is it comment started? 24:50 24 minutes, 50 seconds Which one? Sorry again actually your voice but your voice seems to be very muffled. Yeah. Yeah. Hello. Hello. Uh it is clear now. 25:00 25 minutes Uh maybe slightly better but yeah please repeat the question. 25:03 25 minutes, 3 seconds Yeah like just one last question on the update that you have given about expansion capacity. Is this still work 25:10 25 minutes, 10 seconds in progress or is that commencing for the MDF? You're saying uh I think he's asking. 25:18 25 minutes, 18 seconds Yeah. Yeah. Yeah. What is for the plywood in Orisa? There is already a work in progress. 25:25 25 minutes, 25 seconds Okay. And can we get a guidance that uh expected commencing date or project capital expenditure remaining for this project for the FY26 and FY27? 25:35 25 minutes, 35 seconds So, so uh you know uh our project commencement right now we have kept it as uh Q4 of FI27 25:45 25 minutes, 45 seconds and uh the total investments which we speak about this plant was close to around 130 odd crores and I think we 25:51 25 minutes, 51 seconds will be in that range only. Uh maybe we would have invested by this time already. How much we have invested already? Around 30 odd course. 26:00 26 minutes Okay. Sanj do you have the number? How much? 26:02 26 minutes, 2 seconds We would have invested around 25 30 crores by this time. Yeah. 25 to 30 crores already invested. Right. 26:09 26 minutes, 9 seconds Okay. Okay. 26:12 26 minutes, 12 seconds Thank you. Our next question comes from the line of Sneha Tala from Noama. Please go ahead. 26:19 26 minutes, 19 seconds Hi team. Thanks a lot for the opportunity. It's an extension to question of Rishi Kesh. What is the realization and the margins now we are 26:26 26 minutes, 26 seconds resuming on the new what is that this realization and MDF MDF MDF yeah 26:36 26 minutes, 36 seconds I think uh we are targeting a similar level of realization in the in the new plant also and it's quite soon to say you know this plant this capacity will 26:44 26 minutes, 44 seconds come up for us in uh 18 months in 18 months from now. So yes, we are assuming that we'll be at similar levels. 26:54 26 minutes, 54 seconds These capacities we have will come in second by by end of second quarter of FI28. So we still have a good time actually. 27:03 27 minutes, 3 seconds But yes, right now we are only assuming that and and we are able to grow our business at our current realization. We are able to grow well in quarter 4 27:11 27 minutes, 11 seconds actually we are looking at a much higher growth. So I mean you know at this point of time this is a fair assumption that we will continue to get this realization. 27:19 27 minutes, 19 seconds uh assuming that the market also behaves similarly in case there is price increase which happens in the market 27:27 27 minutes, 27 seconds market by four five 6% you know in the next 12 months then of course the realizations will also change actually exactly my point so the kind of 27:35 27 minutes, 35 seconds roses that you're expecting on the new uh you know line of business won't be strong again as per your current 27:43 27 minutes, 43 seconds realization number right you see the investment is only 400 crores now okay on a 700 CBM line uh 27:51 27 minutes, 51 seconds despite the increase in uh you know the the rupee euro and everything so I think that is a big big advantage which we are 27:59 27 minutes, 59 seconds going to create in this so yes the ROC would be similar around anything between 16 and 18% not more than that 28:07 28 minutes, 7 seconds right right understood and what are the other capex plans that you have for FI27 28:14 28 minutes, 14 seconds FY27 now the major plan is only this uh you plywood Orisa unit which will get completed. So the the balance 28:23 28 minutes, 23 seconds investments will go there and uh this investment of 400 crores over 18 months. 28:30 28 minutes, 30 seconds So it will actually start from quarter 4 itself some amount of investments will happen in quarter 4 and then it will 28:37 28 minutes, 37 seconds continue up to quarter 1 of or quarter two of FI28. 28:44 28 minutes, 44 seconds Understood. And the Orisa plan you said been published by quarter 1 or quarter 2 by 27. 28:49 28 minutes, 49 seconds No no quarter 4 of FY27. So uh January, February, March sometime in January, February, March of calendar year 27. 29:01 29 minutes, 1 second Understood. And sir, if I heard you correctly, you also said from now on, you know, would be looking at mid-team sort of for growth for Plywood division. 29:08 29 minutes, 8 seconds what's changed uh uh you know precisely between the first half to now that you know we are in double digit at this 29:16 29 minutes, 16 seconds point of time and incrementally we can look at these amount of growth continuing. 29:21 29 minutes, 21 seconds So I think Sneha we we mentioned this we mentioned this in the last call that we had taken support of a a consulting 29:30 29 minutes, 30 seconds house which is now with us almost for last you know more than 18 months actually maybe 21 months and initially 29:39 29 minutes, 39 seconds we worked uh on first thing first on our uh factory side uh you know availability of stock we found that there were a lot 29:48 29 minutes, 48 seconds of gaps at times when we were not able to deliver on time to our customer despite having orders in place. So you 29:55 29 minutes, 55 seconds know once you are not able to deliver on time or there is a delay uh of course either you lose some amount of sales because my dealer is not going to wait 30:03 30 minutes, 3 seconds right plywood is not a category where specifically he will uh only wait for a green ply so he can always and you know 30:10 30 minutes, 10 seconds that all of them are MBOS's correct so keeping that in mind the first thing first initial time we only worked on 30:18 30 minutes, 18 seconds correcting the supply side issues and everything on the factory side having done that Then we came back to what we 30:26 30 minutes, 26 seconds need to do on the sales side. So there was a lot of preparatory work which was going in terms of uh reach and distribution that you know where are the 30:34 30 minutes, 34 seconds gaps on reach and distribution. Second of course you know how do we do a better management in terms of our SAP the 30:41 30 minutes, 41 seconds salesforce automation and we get and extract better throughput from every salesperson who is working uh you know 30:49 30 minutes, 49 seconds who whose feet is on the street. So we have created metrics, we have created KPIs and uh you know those things started its trial run in quarter two. 31:00 31 minutes good part the best part which I even mentioned in my in my last call is that the adaptability of the same with the 31:07 31 minutes, 7 seconds from the team was very very uh smooth you know normally it's a big change management but uh you know kudos to our 31:15 31 minutes, 15 seconds team that they wholeheartedly uh took this in their stride and uh you know we started working now on those metrics so 31:24 31 minutes, 24 seconds there is granularity there is depth in terms of the daily working also and aided by that a bit tweak in our 31:31 31 minutes, 31 seconds strategy which was we started investing on ecotech as a brand. So this was something which you know which was the 31:38 31 minutes, 38 seconds third support which is an organization which we provided to our overall strategy. 31:44 31 minutes, 44 seconds So keeping all those things in mind now you can see in quarter 3 we have actually grown at 12 and a half% in volume which is after a long time I think maybe after couple of years or so. 31:55 31 minutes, 55 seconds So uh we are pretty confident and uh you know then rest time will only tell. 32:03 32 minutes, 3 seconds No sir. Lastly on the furniture hardware please. 32:10 32 minutes, 10 seconds Ladies and gentlemen in order to ensure that the management will be able to address questions from all the participants in the conference. Kindly limit the questions to two per 32:18 32 minutes, 18 seconds participant. Our next question comes from the line of Uttkar Snopani from Anandra T. Please go ahead. 32:25 32 minutes, 25 seconds Uh yeah hi uh good afternoon sir sir my first question is on uh your MBF segment uh so if you see the value added uh 32:33 32 minutes, 33 seconds product revenue share uh in that category has gone down uh from 22% in Q1 of FI25 32:41 32 minutes, 41 seconds uh to 17% in Q3 of FI26. So wanted to know what challenges we are facing that we are not able to grow uh uh the 32:48 32 minutes, 48 seconds valuated revenue mix over the past seven quarter period. 32:53 32 minutes, 53 seconds I think uh the the number you're referring to here is I think the prelam sales uh you know there are times that you 33:02 33 minutes, 2 seconds know uh the company does uh some certain projects or certain orders where the prelam proportions are very high and then there there are some times when 33:10 33 minutes, 10 seconds those orders are not available but if you look at our overall mix in terms of HMR boil pro exterior grade work versus 33:19 33 minutes, 19 seconds interior grade I think we are very very well placed and as a strategy you know we do not want to provide that number uh 33:26 33 minutes, 26 seconds and make it so easy for the competition so uh I don't think we should be worried looking at the prelab numbers going up 33:34 33 minutes, 34 seconds and down that is how we look at it internally obviously that does not mean I don't mean to say that you know we don't want the prelam numbers to grow 33:42 33 minutes, 42 seconds obviously we want it to continuously keep growing but overall in terms of uh value added versus non-value added we 33:49 33 minutes, 49 seconds are very comfortable and happy with our performance so far and we think that in times to come this will not be a challenge. Maybe up to the second line 33:57 33 minutes, 57 seconds this won't be a challenge. Starting the third line will be a challenge because then the capacity will be too high to sell maximum value added products. 34:05 34 minutes, 5 seconds Okay. And sir like uh uh on the margin fund it has turned out to be significantly lower in December quarter compared to our guidance of 16% plus 34:15 34 minutes, 15 seconds which we are targeting in the H2 of FI26. So wanted to know what is the reason for for such inferior margin compared to our guidance which we have 34:23 34 minutes, 23 seconds shared in the first week of November. Uh and by what time frame we are expecting the margin to go up to our targeted level of 16% going forward. 34:32 34 minutes, 32 seconds Right? So one we are targeting that you know we should have a similar that kind of a margin profile in the in quarter 34:40 34 minutes, 40 seconds four itself. Number one. Number two, in quarter uh in quarter three, we did not get the entire benefit of the increased 34:49 34 minutes, 49 seconds capacity. You know, we disturbed ourselves in quarter 2 to expand the capacity and we did not get the full output in quarter 3. That was one of the 34:56 34 minutes, 56 seconds reasons why we could not achieve the margin. The second reason I think Manoji mentioned very clearly in his speech was that we had to do some kind of sourcing 35:05 35 minutes, 5 seconds to ensure that our dealers distributors do not suffer. they continue to get the material and obviously the sourcing comes at an extra cost. It does not come 35:13 35 minutes, 13 seconds at your own cost of manufacturing. Hence a 2% margin hit over in in the entire quarter was faced due to that reason. So 35:22 35 minutes, 22 seconds given these scenarios in quarter three that you know we could not ramp up completely for the reason that you know we could not give you the projected uh 35:29 35 minutes, 29 seconds result. Fingers crossed hopefully in quarter four we'll give you that uh result for sure. That is one. And uh 35:37 35 minutes, 37 seconds number two I think Manoji also mentioned that January production was ever highest. So you know we are very confident and looking at the same we 35:46 35 minutes, 46 seconds feel that you know quarter four will be in the lines of what we have committed. 35:51 35 minutes, 51 seconds So let me just add to that in quarter three when we spoke about 16% margin now we know now at least we can share that 35:59 35 minutes, 59 seconds we felt that you know we'll get the added advantage of uh the production and we will do a 20% plus growth in quarter 36:06 36 minutes, 6 seconds 3. If you'd have hit that number for sure we would have been at 16% margin you know we would not have been troubled at all but since we lost that much of value sales it also impacted the margin. 36:18 36 minutes, 18 seconds January has been excellent in terms of uh you know on the production side and that's why uh this level of confidence that we'll be back to a 16% plus margin from quarter 4. 36:29 36 minutes, 29 seconds Okay. And so lastly on the balance sheet side like at the time of Q4 of FY25 earning call we guided that we are 36:36 36 minutes, 36 seconds looking forward to reduce our net debt position from 465 cr uh in March 25 to 250 cr by March 27. But now uh we 36:46 36 minutes, 46 seconds believe that our net debt is likely to go up to close to around 350 cr by March 27 since we have undertaken new growth 36:52 36 minutes, 52 seconds capex. Uh so sir wanted to know uh with this capex announcement uh our net debt to a beta is likely to remain at 36:59 36 minutes, 59 seconds elevated level of more than 2x and are we comfortable at such high net debt to a beta on a sustained basis sir? 37:06 37 minutes, 6 seconds So net debt to a beta on no first of all it will not be more than two for even the coming year. Okay. uh we have looked 37:13 37 minutes, 13 seconds at our numbers uh I'm not diverging all the numbers but it will be less than two but that will only be for one year okay 37:20 37 minutes, 20 seconds because that will possibly and we are not very sure that whether we'll we'll be at 650 or 600 we are we're just assuming because 400 cr will get spent 37:29 37 minutes, 29 seconds over the next 18 months. So maybe it may happen that you know there are payments which goes to the last quarter also which is the sixth uh quarter but we are 37:38 37 minutes, 38 seconds assuming that okay yes fair basis we should be somewhere around 650 at 650 we are much less than two but that is just 37:46 37 minutes, 46 seconds for one year the next year itself we will be at one the subsequent year. Okay thanks a lot sir. 37:54 37 minutes, 54 seconds Yeah thank you. Our next question comes from the line of parser from invest. Please go ahead. 38:02 38 minutes, 2 seconds Yeah. Hi sir. Uh so thank you for the opportunity. So I have two questions. 38:05 38 minutes, 5 seconds One is a clarification on the capeex number. Uh so we sir mentioned that the capeex for the new MDF capacity would be 38:12 38 minutes, 12 seconds 400 crores. Uh versus the media release it says 425 for a 7 600 to 700 cbm 38:20 38 minutes, 20 seconds capacity. So can we just confirm 400 crores for a 700 cbm capacity? 38:26 38 minutes, 26 seconds Sorry I stand corrected. The number is 425 and the difference is on account of GST. You know when we did the interval 38:33 38 minutes, 33 seconds calculation the operating team always calculate 400 but when the CFO does the calculation he takes the GST also into account which will get capitalized. 38:42 38 minutes, 42 seconds The rest of the GST is only a cash flow item but this 20 cash flow item. Yeah. So it's a cash flow item. So you know for I mean yes 38:50 38 minutes, 50 seconds board of course we'll have to take along with the GST. Yeah. 38:54 38 minutes, 54 seconds Fair enough. Fair enough. And sir uh one other thing uh on input cost uh like if you could throw some light on you know how the timber costs are trending uh and 39:02 39 minutes, 2 seconds what was your consumption cost in Q3 and what is is it right now are we seeing any moderation over here? timber cost uh 39:11 39 minutes, 11 seconds you know almost has remained stable uh in the last quarter uh slightly it it bumped up in the month of December for 39:19 39 minutes, 19 seconds some period but again in January it is back to like you know the same uh October November uh levels. So yes we 39:27 39 minutes, 27 seconds are we were expecting that the timber prices to be stable or it will start coming down. Uh it is stable it has start it has not started coming down. 39:39 39 minutes, 39 seconds Okay. Okay. And so just one last question. Uh so what sort of brownfield optionality do would we have at this 39:45 39 minutes, 45 seconds bodha facility uh post this you know uh post this new expansion? Do we have any optionality in terms of you know uh land 39:54 39 minutes, 54 seconds that is available to put up another line. 39:58 39 minutes, 58 seconds I think after MDF2 we will not have any spare land to you know expand further our capacity over there for sure. Maybe 40:07 40 minutes, 7 seconds something small is a very different thing but not a large cap end or a large plan. 40:13 40 minutes, 13 seconds All right, perfect. Thank you sir. Those are the questions. 40:16 40 minutes, 16 seconds Okay, thank you. Our next question comes from the line of Fenil Brahmavad from Choice Institutional Equities. Please go ahead. 40:25 40 minutes, 25 seconds Hello, good afternoon and thanks for the opportunity. Uh uh I have a couple of questions. Uh sorry if uh something 40:33 40 minutes, 33 seconds repeating again but yeah just to confirm. No problem. So could you could you able to share a revised guidance for volume and margin for both playwood 40:42 40 minutes, 42 seconds plywood and MDF business for FI26 and FI27 if you have any handy number? 40:50 40 minutes, 50 seconds You're saying for the full year? 40:52 40 minutes, 52 seconds Yeah, full year I'm saying the for FI2627 our volume or margin guidance. 40:59 40 minutes, 59 seconds So, so you know we have not given any such guidance but yes while we were speaking we have mentioned that in 41:06 41 minutes, 6 seconds plywood we have now started looking at doubledigit growth uh we know from quarter 3 we we mentioned this earlier 41:13 41 minutes, 13 seconds that uh in our last call previous call that in H2 we will look at a doubledigit growth in volumes in plywood as well as 41:21 41 minutes, 21 seconds MDF and uh at this point of time we will only maintain the same statement because we have been able to deliver in quarter 41:28 41 minutes, 28 seconds We can see that happening in quarter 4 and even for going forward this is what internally we are looking at as a company and we feel pretty confident 41:36 41 minutes, 36 seconds that yes from here on we'll be able to deliver those numbers but uh however uh you know yeah the full full FI26 do we 41:45 41 minutes, 45 seconds have any working for FI26 full year what maybe you know you can reach out to the team and the team can uh you know let 41:54 41 minutes, 54 seconds you know afterwards because yeah of the numbers variable or or uh uh any any quantify margin 42:01 42 minutes, 1 second difference between MDF boards and uh prelab boards like uh do we have any uh different uh numbers for these two in 42:10 42 minutes, 10 seconds MDF business like what is the margins over there you want margins separately for prelam 42:19 42 minutes, 19 seconds and separately for plane boards right do we have that number with us I don't think we have it handy maybe you can get in touch J or the CFO. I don't 42:28 42 minutes, 28 seconds know if you all can share this. We will share. 42:31 42 minutes, 31 seconds Uh okay. Okay. Great. And uh considering this uh uh uh current current market and 42:38 42 minutes, 38 seconds the uh over supply in MDF. So what are uh what's the management strategy for the MDF business and uh considering this 42:47 42 minutes, 47 seconds price war and steady demand and over supply and do uh do we look looking for any exports opportunity as well? 42:55 42 minutes, 55 seconds So uh if you look at the export mix which existed for most players, I think people export at cost or slightly lower than cost to keep their plants running. 43:06 43 minutes, 6 seconds That is what we've understood looking at certain other listed players. So definitely export is not an option you 43:13 43 minutes, 13 seconds know with the Europe FTA or the or the US deal. Now if that those markets open up, I'm not I'm not sure how the 43:20 43 minutes, 20 seconds scenario will be. But the current scenario if you look at any other listed player who's exporting I don't think they really make any uh money in 43:27 43 minutes, 27 seconds exports. So our focus is definitely the domestic market. If you look at our brand and our brand strength and our distribution strength I think the 43:35 43 minutes, 35 seconds capacity we have for MDF is very very small today. Even though the there is over supply in the market but as Manoji mentioned we are only looking at 7 and a 43:44 43 minutes, 44 seconds half% of the market uh installed capacity today uh or that is our only market share today. So for the second 43:51 43 minutes, 51 seconds line also we are not worried as the management of the company. We feel that with our brand we'll easily sell through and also you have to see the competitive 44:00 44 minutes advantage in terms of the regional strength. So given that we are the only player producing MDF in western India 44:08 44 minutes, 8 seconds that is definitely giving us a strength and we want to continue to be dominant there and hence we've announced our second facility there as well. 44:17 44 minutes, 17 seconds Okay. Okay. And that uh 400 cr MDF plant new plant which we are talking about that is for which location for Baloga 44:25 44 minutes, 25 seconds only or uh this something this is in the same location and we plan to take many advantages having the 44:32 44 minutes, 32 seconds second line in the same location. We feel that on a long-term basis there will be raw material advantage on a long-term basis there will be fixed cost 44:40 44 minutes, 40 seconds advantage in terms of uh manpower and management and also we are going to dedicate both lines for different 44:47 44 minutes, 47 seconds purposes. So we are going to run our existing line in the future only to make thick boards and we're going to run the new line only to make thin boards. That 44:55 44 minutes, 55 seconds way we'll be able to churn out maximum capacity from each line. 45:01 45 minutes, 1 second Okay. Okay. Okay. And the last question from my side uh management outlook from for chair of PA from furniture hardware 45:09 45 minutes, 9 seconds JV if you have any any outlook on that on the furniture uh hardware JV. 45:16 45 minutes, 16 seconds Yeah. So right now we are facing loss. So so yeah. 45:20 45 minutes, 20 seconds Yeah. Yeah. So so the ramp up has been good. We are happy with the ramp up. 45:23 45 minutes, 23 seconds Okay. And um and next year's also we are seeing that uh we would be able to grow 45:29 45 minutes, 29 seconds at around 30 35% for the next year. But even with the 30 35% growth somewhere we 45:37 45 minutes, 37 seconds will not be able to make profits. The year subsequent we will be able to make profit for two reason. One there will be 45:44 45 minutes, 44 seconds another growth of maybe 35 to 40% for sure. Second uh they are part of the products right now which we are 45:52 45 minutes, 52 seconds importing. We are importing from Turkey where uh you know my import costs are high and we have a plan now to do the 46:00 46 minutes expansion of phase two. So once that is being done then uh the margins improve significantly the moment we start 46:08 46 minutes, 8 seconds manufacturing those in India. So we'll get this dual advantage. One there will be a lot of improvement in the overall margin and second the growth will also 46:16 46 minutes, 16 seconds propel us uh in terms of bringing down the the losses. So uh FY28 for sure we will be into profits. 46:26 46 minutes, 26 seconds Got it. Got it. Thanks for the answer and all the best. Thank you. 46:32 46 minutes, 32 seconds Thank you. Our next question comes from the line of Karan Batalia from Asian Market Securities Private Limited. Please go ahead. 46:39 46 minutes, 39 seconds Hi sir. Thanks. Am I audible? Yes Karan. 46:42 46 minutes, 42 seconds Yes sir. Just to continue on the new kegs. So correct to assume the new capeex will be for thin line and the existing infra will be for the thick 46:49 46 minutes, 49 seconds line. So wanted to understand on the product profile how better could be the realization profile of thin MDF uh and 46:56 46 minutes, 56 seconds thick and also on the margin side and if I have to break up the domestic market into thin and thick uh how much is uh the share of each? 47:08 47 minutes, 8 seconds Uh so honestly uh today whatever realization you see is a blended realization of thin and thick but today 47:15 47 minutes, 15 seconds given that we have one line and we have to produce all grades all thicknesses we have frequent stopovers and changeovers 47:24 47 minutes, 24 seconds on that line. The moment we have two facilities in the same premise we will dedicate each line for each category of 47:33 47 minutes, 33 seconds uh product. So one line will only make thin all grids, one line will only make thick all grids. So in that case what happens is that the total output of each 47:42 47 minutes, 42 seconds line can be increased with the fixed cost remaining the same. 47:45 47 minutes, 45 seconds That's the way you know we can really increase our operating margins and leverage the efficiencies. Mhm. 47:53 47 minutes, 53 seconds So that is the major change which will come in and answering your question about the thin thick I think about 354% 47:59 47 minutes, 59 seconds of the market easily should be uh thin boards and the rest is thick according to me but there's no authentic data to 48:07 48 minutes, 7 seconds back this field and the experience we've gained over the years. 48:12 48 minutes, 12 seconds Right. Right. And and on the MTF side you know again we've seen players you know getting into aggressive KEX modes. 48:19 48 minutes, 19 seconds uh so so what's the current installed base as on 26 cent and how do we see the industry level ker over next 2 three 48:26 48 minutes, 26 seconds years from all branded and smaller brands I think we are looking at a I think that the industries go the product the MDF 48:35 48 minutes, 35 seconds industry in India will grow at a 15% kagger is what we internally feel you know this was the same question asked by our board yesterday and that is the 48:44 48 minutes, 44 seconds numbers that we feel and even our board feels confident and looking at the history uh you know Greenplay was involved in this category long back you 48:52 48 minutes, 52 seconds know even when Greenplay was one entity so you know we've seen this kind of a high uh growth kagger over almost a 49:00 49 minutes decade now as an organization and the only worry is if supply grows by 15% plus we we may not not really have 49:09 49 minutes, 9 seconds days where you can take price a can see meaningful improvement in the margins or the return profile so I think we'll have to see we'll have 49:18 49 minutes, 18 seconds to see the ROC or the margin or uh you know how good an investment is over 3 years, 5 years and 7 years. So if we 49:27 49 minutes, 27 seconds check the investments and returns on those intervals, I think we'll be satisfied fairly. But if we see it on a short-term basis, yes, it might look 49:36 49 minutes, 36 seconds like a very, you know, bad decision or a bad uh choice that, you know, currently there's over supply, people are not making money, should we invest or not 49:44 49 minutes, 44 seconds invest. But, you know, looking at Greenp's future and wanting to be dominant in the wood panel space, I think we need to continue to grow and 49:51 49 minutes, 51 seconds dominate this space and I'm very confident that on a long-term basis, we'll create enough value uh to satisfy us and each and every stakeholder. 50:00 50 minutes Yeah. Thanks. Thanks. Also current also current what happens now you know there is a so the installed capacity in MDF we mentioned there in the call also we are 50:09 50 minutes, 9 seconds not able to or most of the players they are not able to operate on 100% of the install capacity at any point of time so there's already a gap of let's say 10 or 50:18 50 minutes, 18 seconds 15% most of us will be able to operate because of the mix so the install capacity uh you know when it comes from the German manufacturer they speak about 50:27 50 minutes, 27 seconds certain thicknesses certain sizes made in that proportion The moment we have the the real mix which we are today selling in the market 50:36 50 minutes, 36 seconds we also find that you know like today we are talking about 71%. I think the moment we go beyond 85 86 somewhere we 50:44 50 minutes, 44 seconds will start feeling that heat. Okay. So technically speaking though we are saying 1,000 CBM but we will not be able 50:52 50 minutes, 52 seconds to manufacture 1,000 CBM with the present mix what we are selling and that is true for most of the players. 50:59 50 minutes, 59 seconds So the capacity which is there in the market also uh you know when we do our calculations we feel that that capacity 51:06 51 minutes, 6 seconds should mostly get utilized in the next 12 months. Whatever capacities are already in in place and also remember 51:14 51 minutes, 14 seconds which we have mentioned earlier that you know these are such plants that they don't operate at 85 90% capacity on day 51:22 51 minutes, 22 seconds one. it it takes a cycle of two year to three year for them to reach that maturity of start delivering you know 51:29 51 minutes, 29 seconds between 85 and 90% uh throughput so so I think there is a level of balancing which has already happened and 51:37 51 minutes, 37 seconds for us we clearly see that going into west uh is an advantage because there is a good market there is no clutter there 51:45 51 minutes, 45 seconds we didn't wanted to go into that space where there are already so many plants in south and north so you know even last time like they 51:53 51 minutes, 53 seconds were concerned but I we we've been able to prove to everybody that we took a good decision at that point of time and I'm sure this time also we'll be able to 52:02 52 minutes, 2 seconds prove this that uh you know what we have taken the call uh both in terms of location and in terms of the the pricing 52:09 52 minutes, 9 seconds at which we will be able to establish this plant the timeline uh possibly this will turn out to be good only 52:17 52 minutes, 17 seconds got it got it thanks thanks no further questions you know any closing remarks management team would like to make. 52:27 52 minutes, 27 seconds Thank you all for taking time to participate in this call. In case of any further clarifications or queries, please feel free to reach us. Thank you. 52:37 52 minutes, 37 seconds On behalf of Asian Market Securities Private Limited, that concludes this conference. Thank you for joining us. 52:43 52 minutes, 43 seconds And you may now disconnect your