Gsmfoils Ltd — Q3 FY26

GSM Foils Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=n0TpVECnre0 Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Q3 9 months FI26 earnings conference call of GSM Foils Limited hosted by Eggs B4 Advisory LLP. 0:13 13 seconds As a reminder, all participant lines will be in the listenonly mode and there will be an opportunity for you to ask questions after the presentation 0:21 21 seconds concludes. Should you need assistance, bring the conference call. Please signal an operator by pressing star then zero 0:28 28 seconds on your touchstone phone. I now hand the conference over to Mr. Aam Sha from XB4 Advisory LLP. Thank you and over to you sir. 0:39 39 seconds Thank you. Uh good morning everyone and welcome to the Q3 9mm FI26 earnings conference call of GSM foils limit. 0:47 47 seconds Today on this call we have with us Mr. 0:49 49 seconds Saga Girish Vanushali who is the wholetime director and the chief financial officer of GSM files limited. 0:56 56 seconds Uh this conference call may contain some forward-looking uh statements about the company which are based on beliefs, opinions and expectations as of today. 1:04 1 minute, 4 seconds Actual results may differ. Uh this uh the statements are not uh not the guarantees of the future performance and invol uh involve risk and uncertainty. 1:14 1 minute, 14 seconds Uh with this I now hand over the uh call uh to Mr. Saga for his opening remarks. Over to you sir. 1:22 1 minute, 22 seconds Good morning everyone. Thank you for joining us for quarter 3 9 monthly financial year 26 earning conference call of GSM falls limited. I hope all of 1:30 1 minute, 30 seconds you have got a good opportunity to look through our financial results and investor presentation which are uploaded on the stock exchange and also on the company website. Before we get into the 1:39 1 minute, 39 seconds financial highlight, let me first share some perspective of the industry trends and recent development impacting our businesses. Indian pharmaceutical 1:46 1 minute, 46 seconds packaging ecosystem continues to remain strong driven by sustained growth in the domestic pharmaceutical sector and rising export opportunities. India is a 1:54 1 minute, 54 seconds leading global supplier of generic medicines catering to over more than 200 countries and thus is driven by robust requirement of regulatory complaint 2:02 2 minutes, 2 seconds primary packaging material such as blister and strip foil which is GSM foils core products. Aluminum foils 2:10 2 minutes, 10 seconds remain the preferred primary packaging material for tablets and capsule due to their superior barrier properties against moisture, light and gases which 2:18 2 minutes, 18 seconds are critical for product quality and self-stability. This underpins durable demand for high quality farmer oil across regulated market. On policy 2:26 2 minutes, 26 seconds fronts, the ongoing initiative to strengthen domestic value added capacity and to promote self-reliance in packaging material to continue support 2:34 2 minutes, 34 seconds to local foil manufacturers. This development reinforced the competitive positioning of Indian players in the pharmaceutical packaging value chain. 2:41 2 minutes, 41 seconds Now as a part of a long-term expansion strategy, we have recently commenced a new manufacturing facilities in Ahmedabad, Gujarat, which is spread over 2:49 2 minutes, 49 seconds 17,000 square ft. It is a least premises. The company the plant is already operational with an annual 2:56 2 minutes, 56 seconds capacity of more than 10,000 metric t with a target utilization of 40 to 50% by the end of this financial year. This 3:04 3 minutes, 4 seconds facility is expected to support our next phase of growth by widening a pharmaceutical customer base particularly across western and northern region and by catering to incremental 3:13 3 minutes, 13 seconds demand from both existence and new client. Additionally, given its relatively lean cost structured compared to vas unit, we expect this unit to 3:21 3 minutes, 21 seconds deliver modestly better margin and with as a newly the utilization capacity ramps up. With this strategic step in 3:28 3 minutes, 28 seconds place and backward discipline execution, a strong focus on customer-led innovation, we are optimistic about delivering steady growth and improved operational efficiency in the coming quarters. 3:38 3 minutes, 38 seconds Now coming to the financial performance of quarter ended Q3 for financial year 26. During Q3 financial year 26, the 3:46 3 minutes, 46 seconds company delivered a strong set of revenue posting of around 6632.88 lakhs that is robust 84% yearon-year 3:53 3 minutes, 53 seconds growth. Abitas stood at 78.84 84 lakh represented an impressive 95% increase over Q3 financial year 25. The AITA 4:02 4 minutes, 2 seconds margin expanded by 65 basis point to 11.89% compared to 11.24% in the same quarter last year. The PAT 4:10 4 minutes, 10 seconds of the quarter is 533.14 lakhs reflecting a significant 96% yearon-year growth. The PAT margin improved by 49 4:18 4 minutes, 18 seconds basis point moving from 7.55 to 8.04 04 demonstrating the benefit of higher operating leverage and improved 4:25 4 minutes, 25 seconds cost efficiency as we continue to scale for 9 month financial year 26 we recorded a revenue of 17646.5 4:33 4 minutes, 33 seconds lakhs registering a substantial 100% year-on-year growth the EIA for this period comes to 2035.32 4:41 4 minutes, 41 seconds lakhs making 107% increase compared to financial year 9 month financial year 25 aida margin strengthened by 87 basis 4:50 4 minutes, 50 seconds point from 10.6 sixes to 11.53. The PAT stood at 1355.76 lakhs which is almost 118% 4:59 4 minutes, 59 seconds up compared to the last year. The PAT margin expanded by 61 basis point from 7.68 to 7.07 for financial year 25. 5:09 5 minutes, 9 seconds This number validate the strength of our business model and execution efficiency of our team. With steady demand, scalable infrastructure and clear focus on margin excluded growth. We are 5:18 5 minutes, 18 seconds confident of sustaining this performance throughout financial year 26. Now with that I would like to open the floor for questions and answers. 5:27 5 minutes, 27 seconds Thank you very much sir. We will now begin the question and answer session. 5:32 5 minutes, 32 seconds Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove 5:39 5 minutes, 39 seconds yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. 5:49 5 minutes, 49 seconds Ladies and gentlemen, we will wait for a moment while the question Q assembles. 6:04 6 minutes, 4 seconds The first question comes from the line of Priyanu Jen with Growth Infinity. Please go ahead. 6:12 6 minutes, 12 seconds Hello. I'm audible. Yeah. Yeah. You're audible, sir. 6:16 6 minutes, 16 seconds Hi sir. Uh congratulations again on a good set of numbers. Uh again a good quarter for us. Uh sir, as you said that 6:24 6 minutes, 24 seconds the commercialization of our recent plant. So uh like what utilization uh we are expecting uh by the end of this year. 6:32 6 minutes, 32 seconds The end of this year we are aiming a utilizing around 50%. which would in terms of monthly figures be around 10 to 6:40 6 minutes, 40 seconds 12 kores monthly sale from there at this initial level. So we already reached five crly sale in the last month. So by 6:48 6 minutes, 48 seconds this two month coming down the line with the orders in hand and the growing demand in Ahmedabad and Gujarat side we are quite optimistic to reach that level by end of this year that is March 26. 7:00 7 minutes So you are saying 50% 50. Yeah. 7:05 7 minutes, 5 seconds Okay. And uh at like at 50% what can we expect 15 K you are saying around 10 to 12 K initially with more 7:13 7 minutes, 13 seconds scaling and more certain developments over there down the line we may uh like the current Vasai plant that I'm 7:21 7 minutes, 21 seconds operating now I'm if I do at 100% capacity then I can increase the turnover from 25 to 28 K the same facilities in the Ahmedabad with same 7:29 7 minutes, 29 seconds set of machinery so the to make it completely operational now we need certain time by two to three quarters more but currently if the capacity that 7:38 7 minutes, 38 seconds we have if you're aiming at 50% then certainly a revenue of 10 to 12 crores can be achieved by this much 7:46 7 minutes, 46 seconds okay uh great sir uh sir I just wanted to understand they say like if uh we are getting orders uh to for this blister 7:54 7 minutes, 54 seconds and uh aluminium foils so as there is some fluctuation in the prices in of aluminium so uh like how we deal with 8:02 8 minutes, 2 seconds the like uh after getting the order we book uh aluminium foils at the same price so that we can sustain our margins 8:10 8 minutes, 10 seconds and going forward like uh is there any improvement uh in the margins uh going forward we can expect around 13% or something like that. 8:19 8 minutes, 19 seconds Got it. So the our business model basically was on the letter that is issued by the Hendalo. So the price that 8:27 8 minutes, 27 seconds is decided is by Adita Bullahalo himself. It depends upon the average witted price of the entire month. So since last 6 month you have been 8:35 8 minutes, 35 seconds observing there has been continuously rising trend in alum medium. It was till yesterday post yesterday the actually the entire commodity has gotten a very 8:43 8 minutes, 43 seconds bad hit. So if the price is on a generally rising trend now then it's very much beneficial for us. We keep a very good level of inventory with us. So 8:52 8 minutes, 52 seconds the rate gets passed on on the first of the next month. So you wait and watch the entire month how the prices are moving and by 15th or 16 we get a 9:00 9 minutes generally rough idea about the average weighted average increase price for the next month. So we manage our inventories accordingly. We improve our purchases 9:08 9 minutes, 8 seconds and like try to restrict few sales orders by the month. Then the rate has been passed on on the 1st or the 2nd of each month. Uh it is normally like 9:17 9 minutes, 17 seconds there's no rocket science in it. It can be observed by everyone. Normally alum Williams in past records is on my increasing trend only. We got a hit in 9:25 9 minutes, 25 seconds this last day of this uh January. So we are expecting increase around 30 to 40 that is almost 6 to 7%. But all of a 9:33 9 minutes, 33 seconds sudden the metal price like reduced drastically. Still the aluminium is in plus only if you see the weighted average method but the certain portion 9:42 9 minutes, 42 seconds has come down but that can be very well managed. So not much big hit on the margins but certain amount of profitability that we were expecting 9:50 9 minutes, 50 seconds because of the rate increase would like get a bit lower down. So that is the issue. The passing on the rate is very much okay in this industry. It is based 9:59 9 minutes, 59 seconds on the indulco letters. So plus and minus on the metal price has been passed on and with more inventories been hand we like hit a very like new market. We 10:08 10 minutes, 8 seconds are actually on a growing strength. We are getting into many new markets in Ahmedabad, Surat, Boda also. So with good level of inventory and with this 10:16 10 minutes, 16 seconds increasing rate it help us to like leverage in all those new industry quite well where we don't give them the 100% rate hike we try to restrict between 20 10:24 10 minutes, 24 seconds to 30% and get into their existing clients and vendors very easily. 10:30 10 minutes, 30 seconds Thank you sir for the very detailed answer and uh like the margin improvement going forward is like can we expect uh 10:38 10 minutes, 38 seconds yeah definitely we can expect with this plan coming into operational by 50 60% and more down the line like 6 month or 8 10:45 10 minutes, 45 seconds month down the line we are planning to like do more capeex and do more efficiency kind of business over there then margin improvement will definitely come into picture. 10:55 10 minutes, 55 seconds Okay. The uh last question is on the current utilization of our existing plant. So uh uh first plant so uh sir we have almost reach 85 to 87% last month. 11:09 11 minutes, 9 seconds So more 10 to 12% in this. 11:13 11 minutes, 13 seconds Okay. So we can reach up to 100% utilization uh in this year only. This year only. Yes. 11:20 11 minutes, 20 seconds Okay sir. Thank you sir. And all the best for the future. Yeah. Thank you. 11:26 11 minutes, 26 seconds Thank you ladies and gentlemen. If you wish to ask a question you may press start and one. The next question comes 11:34 11 minutes, 34 seconds from the line of Urish Sha with money wisers. Please go ahead. Yeah. Hi. Am I audible? 11:42 11 minutes, 42 seconds Yeah. Yeah. Audible. Yeah. 11:44 11 minutes, 44 seconds Yeah. So sir, my first question is on the Ahmedabad plant. Could you give a split between the uh production of 11:52 11 minutes, 52 seconds blister and aluminium soil for the Ahmedabad plant? 11:55 11 minutes, 55 seconds It's more or more same it's almost 50 60 550% or 45 55%. The demand is stable since years it's been stable only. So 12:04 12 minutes, 4 seconds okay there's no much difference in that. 12:06 12 minutes, 6 seconds So no because when you say 10 to 12 rows is a going runway for the utilization at current levels. So I just wanted to know 12:14 12 minutes, 14 seconds the math between for that 10 to 12 crores additional that we are going to gain from Ahmedabad till March 26 when you reach 50%. 12:24 12 minutes, 24 seconds So out of that blister will be contributing and aluminium the contribution what will be the contribution levels. 12:31 12 minutes, 31 seconds It's more going to be same only. So the production of capsules and tablets in the farmer sector is almost going on par 12:38 12 minutes, 38 seconds only these days. So likewise blister and slip foil both are going on the same proposion only. 12:44 12 minutes, 44 seconds Okay. And sir I know you have mentioned in your presentation that 50% is the target for March 26 but uh what is the 12:53 12 minutes, 53 seconds timeline for our embab plan to mature uh towards 70 75% capacity utilization. 12:59 12 minutes, 59 seconds Obviously VA was running at 8085 but if you could just give a more some color on that that 13:06 13 minutes, 6 seconds my vision is to reach 100% within one year itself. 13:11 13 minutes, 11 seconds So we are driving towards that only. So let's see how far we go. I'll definitely give you updates every quarter but in one year we are planning to reach 100% 13:18 13 minutes, 18 seconds capacity over there. So near that's FI27 if we yeah and obviously this is a bit of a 13:27 13 minutes, 27 seconds farfetched question but when you reach that capacity then what will be the going runway from 10 to 12 crores 13:36 13 minutes, 36 seconds uh 10 to 12 KS is 50% so okay 25 to 27% 25 to 30 25 to 27 K yeah sir 13:45 13 minutes, 45 seconds okay okay sir and sir since you know Ahmedabad plant is now running at a food capacity. Uh will will we see a dip in 13:53 13 minutes, 53 seconds the working capital days uh sorry a rise in the working capital days for a certain time period? So we'll try to keep it between 60 to 70 days only 14:01 14 minutes, 1 second because that model has been really working well for us right yeah stick to that only yeah okay and sir one final question our cash 14:10 14 minutes, 10 seconds flow from operations have seen a steady improvement but now since we are on an expansion phase uh will we see a blip in that or 14:19 14 minutes, 19 seconds are we going to be positive cash flow from operations in the coming years to be very frank now we don't normally look 14:26 14 minutes, 26 seconds at cash flows Because if you look at our business model now it's totally on credit and inventories only. The cash flow is negative because of the datas 14:34 14 minutes, 34 seconds and the stock that we are keeping and this is the place where we are earning. 14:38 14 minutes, 38 seconds So to bring down cash flows means to bring down the datas and the inventories. If it's suitable and workable for us it would help me to 14:46 14 minutes, 46 seconds improve my margin then I'll definitely work on that. But currently I'm very much comfortable with increasing datas and stock. So not much issues. So 14:55 14 minutes, 55 seconds currently we're not looking at that. But yeah, certain policy changes or if you see the rates are going down continuously and right 15:03 15 minutes, 3 seconds if we are getting better opportunities by providing less credit then you may see an improvement in cash flow but currently we are not worried about cash 15:09 15 minutes, 9 seconds flow being negative. Okay. And sir, one more final question is uh when you say you have to keep a certain amount of inventory which is understandable. What 15:18 15 minutes, 18 seconds is that uh amount of in inventory that you keep for a safeguard? 15:24 15 minutes, 24 seconds This is last 3 to four months with this increasing trend we are quite happy to keep an inventory over almost around a month and a half between 35 to 45 days 15:33 15 minutes, 33 seconds but now we'll reevaluate that because aluminium just got hit actually the entire commodity like I said earlier got hit. So let's see how it goes about in 15:41 15 minutes, 41 seconds this month. So if we are seeing by around 10 to 15 if we see that's on a like decreasing trend only then we may reduce our purchase and sell of the 15:49 15 minutes, 49 seconds inventories as quick as possible. The best part in our business is conversion time is only one or two days. So like it 15:57 15 minutes, 57 seconds doesn't take a month or a week or 10 days 16:12 16 minutes, 12 seconds then I'll keep a tag on that and reduce the inventory level. 16:18 16 minutes, 18 seconds Sure sir. All the best sir. I'll join back. Thank you. Thank you. 16:25 16 minutes, 25 seconds Thank you participants. If you wish to ask a question, please press star N1. 16:35 16 minutes, 35 seconds The next question comes from the line of Masud, an individual investor. Please go ahead. 16:42 16 minutes, 42 seconds Yeah. Uh good morning sir. Uh first of all uh congratulations on the numbers. 16:47 16 minutes, 47 seconds uh uh it's quite good and I just wanted to know sir what is the guidance for FI27 and after this Ahmedabad plant is 16:55 16 minutes, 55 seconds up fully operation are there any further expansion plan and what is the market share that we are planning to capture 17:03 17 minutes, 3 seconds so definitely there is expansion plan but I not fully sure to like commit it but definitely within a month or two I'll give an update because we are 17:11 17 minutes, 11 seconds almost reaching 100% capacity in our existing unit we are looking for two or three alternatives in Mumbai itself. 17:18 17 minutes, 18 seconds Okay, that would be finalized within a month or two but I won't commit you now but yeah definitely by end of this quarter you'll get a very good update regarding 17:26 17 minutes, 26 seconds expansion in the Mumbai facility also and regarding guidance of next year like I told earlier I'm firstly to I'm trying 17:34 17 minutes, 34 seconds to reach 100% capacity in Vasai which we have quite optimistic to reach within a month or two and then 100% capacity utilization by the end of next March in 17:44 17 minutes, 44 seconds Mabad okay okay and vijab is a new facility in Mumbai itself but I'll take a month or two to finalize on that part. If everything 17:52 17 minutes, 52 seconds goes well then even that thing would come into picture so we are quite confident of achieving good scale for next year also. 18:00 18 minutes Okay. Okay. And sir any like do you have any plans to like you want to capture 1% 2% or 3% of the market share of you know 18:07 18 minutes, 7 seconds on the packaging part for blisters and we don't aim or keep all those numbers 18:14 18 minutes, 14 seconds in mind but I definitely want to join hand with many good big players in the industry and try to increase our revenue 18:22 18 minutes, 22 seconds but with that focus of to capture that market or to capture certain LC share or increase one or two% that we generally don't think but yeah we are quite 18:30 18 minutes, 30 seconds aggressive in growing increasing our sales and managing our data cycle and let's see how it goes about. 18:39 18 minutes, 39 seconds Okay. Okay. Thank you so much sir for the answers and good luck for the future. Thank you. Thank you. Thank you. 18:47 18 minutes, 47 seconds The next question comes from the line of Charu Mandal and Vigil investor. Please go ahead. 18:54 18 minutes, 54 seconds Good morning sir. Uh good morning. Am I audible? Yeah. Yeah audible ma'am. 19:01 19 minutes, 1 second new plant work I want to ask this in Ahmedabad 19:08 19 minutes, 8 seconds in Ahmedabad both so we have reached almost 85 to 87% Ahmedabad you have recently started 8 month so currently 19:16 19 minutes, 16 seconds it's between 20 to 30% we are expecting to reach 50% by end of this year 19:22 19 minutes, 22 seconds okay sir second question is fund issue 100%. 19:32 19 minutes, 32 seconds Okay sir. My third question is 19:44 19 minutes, 44 seconds uh let's see with figures that has been showing and planning we are quite confident of reaching that 19:51 19 minutes, 51 seconds but we are definitely aiming a main board. 19:54 19 minutes, 54 seconds Okay sir, all the best for this. Thank you. That's all from my side. 20:02 20 minutes, 2 seconds Thank you. The next question is from the line of Priyanku Jan with Growth Infinity. Just go ahead. 20:10 20 minutes, 10 seconds So uh like just some follow-up questions. uh as you said key that uh by the end of uh FI27 we will reach around 20:18 20 minutes, 18 seconds 100% or uh by the like in next year only like within a few months beyond FY27 what we are expecting like 20:26 20 minutes, 26 seconds any capeex or any plans for the future beyond that yeah definitely we have to do but uh that's what I told you I'll take a month 20:34 20 minutes, 34 seconds or two to finalize everything the first focus is to reach at least rup 60% there and reach 100% by end of this year and 20:41 20 minutes, 41 seconds to do more Apex in our existing Mumbai plant like nearby. We are looking for two or three units to increase business 20:49 20 minutes, 49 seconds here also. So that's what I told you just give me time till this financial year end by March. I'll definitely come up with more solid and convincing 20:57 20 minutes, 57 seconds answers. So currently we are actually looking at two or three proposal. We haven't finalized it. I'll take a month 21:04 21 minutes, 4 seconds or so to finalize it and come up with a better answer. So currently I won't give you a better answer but definitely things are in plan and in a very 21:12 21 minutes, 12 seconds positive way by end of this March we'll definitely give you a good news regarding more expansion in a Mumbai based unit and post that like by this 21:21 21 minutes, 21 seconds Diwali or by next year more expansion in an AA plant also. 21:27 21 minutes, 27 seconds Sure sir uh and sir like last question uh is on the uh customer side. So like for example there is some pharma. So 21:35 21 minutes, 35 seconds like I don't think so we cater them right now. We cater to mid firms like which are like locally based or somewhere. So like what is like they do 21:44 21 minutes, 44 seconds their own uh packaging and uh other things or like we are also aiming for them as our client as well. So with this 21:53 21 minutes, 53 seconds vision of Ahmedabad plant we are aiming to cater all those top five or six companies farmer companies but again we 22:01 22 minutes, 1 second are not able to cater them. The only reason this is that the payment that they give now these days is easily between 90 to 120 days and 150 days. So 22:10 22 minutes, 10 seconds there are certain few companies like you said Sunarma supply and all they are very sharp with their payment terms but they then they won't let you earn good 22:17 22 minutes, 17 seconds margin. So working with A or B B plus good categories now where you are able to sit with the owners and deal with 22:24 22 minutes, 24 seconds them now you are able to get few good margins and you get your own deal like we need payment between 30 to 60 days but catering with all these name now 22:32 22 minutes, 32 seconds bigger names like all these big farmer companies it's very tough to deal on our terms so the rate has been decided the open tenders they are already there are 22:42 22 minutes, 42 seconds many players catering to them you get good volumes no doubt you get good turnovers but the margins very less and plus the payment cycle of all these big 22:50 22 minutes, 50 seconds companies now is very bad these days it goes from 100 to 120 days on a very easy basis so definitely in Ahmedabad plant 22:58 22 minutes, 58 seconds we'll onboard five or six good companies we are making that plant with that vision only that plant is totally auditable with all those SOPs in line 23:06 23 minutes, 6 seconds we'll get to good companies but then again we'll cater only to those who are able to give me payment within 45 to 60 days 23:13 23 minutes, 13 seconds so like uh I get it and uh uh as our main focus in the is on the margins. So 23:20 23 minutes, 20 seconds like uh as you said uh we don't have any plans to cater these big companies because of the payment cycle and the margin thing right very low margins here. 23:30 23 minutes, 30 seconds Yes sir. Uh thank you sir and all the best. Yeah. 23:37 23 minutes, 37 seconds Thank you. A reminder to all participants that you may press star and one to ask a question. 23:45 23 minutes, 45 seconds Ladies and gentlemen, if you wish to ask a question to the management, you may press star and one. 23:53 23 minutes, 53 seconds The next question comes from the line of DH Rati, an individual investor. Please go ahead. 24:00 24 minutes Hello. Hello. Yeah. Hi Sag, good morning. 24:04 24 minutes, 4 seconds Congratulations on very good set of numbers. Yeah, thank you. 24:16 24 minutes, 16 seconds Correct. 24:31 24 minutes, 31 seconds the maintenance cost. 24:54 24 minutes, 54 seconds Monthly 28 to 30. Yeah. Great. Great. 25:05 25 minutes, 5 seconds Definitely sir. Yes. Great. Great. Great. 25:13 25 minutes, 13 seconds Okay. Thank you. Thank you. Thank you. 25:18 25 minutes, 18 seconds The next question comes from the line of Kashab Desai with Ridge Pond Capital. Please go ahead. 25:26 25 minutes, 26 seconds Uh hi Sa. Uh so very quickly on uh just the gross profit uh that we are reporting in the 15.5 to 16% you know 25:35 25 minutes, 35 seconds that kind of range if as aluminum has gone down recently but overall the weighted averages for the next 2 months and including January should be much 25:44 25 minutes, 44 seconds higher than what they were in the last 3 6 8 9 months. So overall should should we be still be able to manage this 15.5 25:51 25 minutes, 51 seconds 16% kind of range uh irrespective of whatever you know daily uh volatility we have in aluminum. 25:58 25 minutes, 58 seconds Yeah sir definitely so the volatility in aluminium we try to like keep it aside we try to increase more focus on our 26:05 26 minutes, 5 seconds profitability. So even if there's a dip in the aluminium by 1 or 2% more then definitely that can be catered by our ABA plant coming in where we are aiming 26:14 26 minutes, 14 seconds a very good pro profitability due to low cost expenditures over there. So that can be easily observed and I won't commit it would increase but yeah 26:23 26 minutes, 23 seconds definitely it can be sustained if the aluminium goes down drastically from here which is still we are not that 26:30 26 minutes, 30 seconds confident that it will go down much so it's going to be more of a stable for a 26:38 26 minutes, 38 seconds month or two and even if it goes down looking at the worst scenario then definitely a one or two% here and there can be easily absorbed in the running 26:46 26 minutes, 46 seconds plant of Ahmedabad and Vasai. So even if it doesn't increase then we are able to like provide you with the same margins 26:53 26 minutes, 53 seconds for at least a quarter or two. Post that let's we see how well the alum performs. 26:59 26 minutes, 59 seconds Understood. And uh just a differential because Ahmedabad is brand new. uh is there a a meaningful uh like a 100 200 27:06 27 minutes, 6 seconds basis points uh better gross margins in Ahmedabad versus the V plant or it's it's it's fairly small because as scales 27:15 27 minutes, 15 seconds up you know that that lends more uh that provides more cushion on the margins. 27:21 27 minutes, 21 seconds Yeah. So 100 to 200 BC point definitely costing a car very frank with you. 27:28 27 minutes, 28 seconds Okay. So better efficiency margin wise. 27:32 27 minutes, 32 seconds Understood. And and uh in terms of any new products that could be more margin accreative or value add uh or newer 27:40 27 minutes, 40 seconds spaces adjacent to the what we are doing right now that we are exploring or where we are thinking we can get approvals and you know obviously that that puts up more on the value side. 27:51 27 minutes, 51 seconds Correct. So we are actually in a learning stage. We are looking at laminates. So there are different types of laminates which are going across the pharma industries and food industry 27:59 27 minutes, 59 seconds also. Laminates basically includes alums PPS and plastics and printing on that it easily can be done in our machine also. 28:08 28 minutes, 8 seconds So whenever there are two or three combinations and you sell combine products obviously the margin increase in that. So we are actually in a 28:16 28 minutes, 16 seconds learning stage in that if that thing clicks well then even two or new products will two or three new products would come in but that would be in the 28:24 28 minutes, 24 seconds next financial year till this much the entire focus is to scale up the business in Ahmedabad with the core product that 28:31 28 minutes, 31 seconds we have in hand level efficiency achieve minimum 50 60% without much interference or without 28:39 28 minutes, 39 seconds being more aggressive then this new T3 products would come into Sure. Perfect. Thanks a lot and best of luck. 28:47 28 minutes, 47 seconds Yeah. Thank you. 28:50 28 minutes, 50 seconds The next question comes from the line of Bascar Kandra with Three Head Capital. Please go ahead. 28:58 28 minutes, 58 seconds Hello. 29:10 29 minutes, 10 seconds Startely 29:33 29 minutes, 33 seconds 26 final final. Okay. 30:09 30 minutes, 9 seconds to sir. Thank you. 30:18 30 minutes, 18 seconds Thank you. The next question comes from the line of NLE an individual investor. Please go ahead. 30:26 30 minutes, 26 seconds Uh hello sir, good morning sir. I also ask you uh like you told us that uh in 30:33 30 minutes, 33 seconds full capacity the uh expected uh monthly sales is 28 to 30 K from the existing plant and from the new plant what is that figure? 30:44 30 minutes, 44 seconds Currently we're reaching 5 to 6 K. So by this March we are expecting to reach between 12 to 15 KES in the new plant 30:52 30 minutes, 52 seconds and one year down the line even 28 to 30 K monthly rate from the MDAR plant. So this is what we are planning on currently. 31:01 31 minutes, 1 second So okay adding up them it's we can expect 55 to 60 cr month monthly after a year. Correct. Yes. 31:10 31 minutes, 10 seconds And sir uh I am also checking the balance sheet the fixed asset is only it is showing less than 3 K. So how is that 31:19 31 minutes, 19 seconds possible sir? Okay. So fix asset in a vaseli plant like if you get set up a new company like I'll give you a prime 31:27 31 minutes, 27 seconds example of a plant only. So to get up a new company and to reach this level of efficiency you need a capex of around 5 to 6 cr itself. The capeex in Ahmedabad 31:36 31 minutes, 36 seconds is around 5.5 K itself. So with that 5.5 K we can easily do on 100% operational capacity turnover of around 25 to 30 KL 31:45 31 minutes, 45 seconds business is obviously machinex 31:57 31 minutes, 57 seconds to do this kind of turnover. Business model is very much it's on heavier side on the working capital side and very 32:04 32 minutes, 4 seconds less on the cape side. So to do a business of 30 around 30 crores monthly now you need a capex of around 4 to 5 CR only. 32:14 32 minutes, 14 seconds Okay. Yeah. And sir uh just now you answered to some caller that uh you we also buy goods from Hendalgo and they 32:23 32 minutes, 23 seconds also give us credit of 15 days sometimes like with this to be very frank but with the 32:32 32 minutes, 32 seconds like what do I say with the growth that we are showing now these days. So 32:43 32 minutes, 43 seconds because of the volume that we are doing and the trust that we have in the market 32:53 32 minutes, 53 seconds but looking at the volume that we are doing and the growth that we doing certain amount ofust 33:11 33 minutes, 11 seconds 100% starts from 30 days, 45 days, 60 days. 33:16 33 minutes, 16 seconds How well do you deal and how well you manage all those POS? Okay, sir. Okay, sir. Thank you. 33:23 33 minutes, 23 seconds Yeah. 33:26 33 minutes, 26 seconds Thank you ladies and gentlemen. If you wish to ask a question, please press star and one. 33:33 33 minutes, 33 seconds The next question comes from the line of Vishal Va with smart horizontal. Please go ahead. 33:40 33 minutes, 40 seconds Hello to you. Yeah. Yeah. Hello. 33:47 33 minutes, 47 seconds Master are there any plan to expand and sorry come again please bridge 33:56 33 minutes, 56 seconds hello yes sir please can you come again? 34:02 34 minutes, 2 seconds Yeah, I'm asking you besides are there any plan to expand countries or countries? 34:11 34 minutes, 11 seconds Currently, we're not looking at any other state. We're trying to like reach a good level efficiency in Gujarat but definitely in Maharashtra specifically in Vasai where we are already located. 34:20 34 minutes, 20 seconds We are planning a capeex. So, it will take a month or two. We'll come up with a good plant in Vasai itself. 34:28 34 minutes, 28 seconds Okay. And by the export market export market we are working really hard. We're not getting that much 34:35 34 minutes, 35 seconds positive response of lately but yeah definitely via many merchant exporters we are working. So directly we're not 34:42 34 minutes, 42 seconds exporting but we these few merchant exporters we are definitely trying to explore more uh different kinds of 34:48 34 minutes, 48 seconds market like in ENM Vietnam uh Europe US. So directly to be very frank we are not exporting currently 34:56 34 minutes, 56 seconds anything but via these exporters machan exporters let's see how it goes about we are planning more sales in that part 35:04 35 minutes, 4 seconds also okay understood okay thank you for 35:13 35 minutes, 13 seconds thank you ladies and gentlemen if you wish to ask a question you may press star and one 35:22 35 minutes, 22 seconds the next Question comes from the line of Anchil Jin, an indigel investor. Please go ahead. 35:30 35 minutes, 30 seconds Hello. Hello. Can you hear me? Yeah. Yeah. 35:36 35 minutes, 36 seconds Uh first of all, congrats on a good set of number. S just want to understand what's the total addressable market for the products we manufacture in India. 35:45 35 minutes, 45 seconds Sorry, what is the total addressable market for the products which we manufacture? 36:00 36 minutes So we are very small compared if you're talking about the entire market share this farmer industry packaging industry 36:06 36 minutes, 6 seconds itself. So 36:16 36 minutes, 16 seconds then badi side, Delhi side with this sikim and jammu coming up with all those benefits that government has given to all those industries. 36:32 36 minutes, 32 seconds The south market is totally untouched. 36:40 36 minutes, 40 seconds So we're talking about figures but definitely talking leaving aside the export market. 36:53 36 minutes, 53 seconds Okay. Thanks. Thanks for answering that. 36:54 36 minutes, 54 seconds And 37:22 37 minutes, 22 seconds 1 2 3 rolling. 37:38 37 minutes, 38 seconds If we're talking about specifically tier two then we are among the top 37:51 37 minutes, 51 seconds we are working with them we are buying with almost everyone market to reach that level we need to do a very 37:59 37 minutes, 59 seconds huge rolling entire set and many Got 38:16 38 minutes, 16 seconds it. Thank you. Thank you. That's very helpful. 38:23 38 minutes, 23 seconds Thank you. A reminder to all participants that you may press star and one to ask a question. 38:42 38 minutes, 42 seconds The next question comes from the line of Om Tucker with smart horizontal. Please go ahead. 38:51 38 minutes, 51 seconds Good morning sir. Just want to ask uh that our revenue doubled in 9 months 38:57 38 minutes, 57 seconds FI26. So can you please quantify between the volume increase and customer radish during this period? 39:06 39 minutes, 6 seconds So obviously volume has been increasing with all those right issue that we did and increase in working capital. So the customer addition if you look about it 39:14 39 minutes, 14 seconds would be hardly 10 to 15% because as I said earlier with the existing set of client that we have now we are almost working with them in their 50 to 60% capacity only. 39:24 39 minutes, 24 seconds Okay. 39:25 39 minutes, 25 seconds So we wanted to work more with them. So 39:39 39 minutes, 39 seconds new clients obviously 39:53 39 minutes, 53 seconds then eventually we'll be able to crack that grow that would definitely come from new plant and plant 40:01 40 minutes, 1 second that would be from the exiting plant itself. 40:05 40 minutes, 5 seconds Okay. What 40:17 40 minutes, 17 seconds thank you. As there are no further questions from the participants, I now hand the conference over to Mr. Saga for closing comments. 40:27 40 minutes, 27 seconds Yeah, thank you everyone for joining us on today's learning call. We hope you are able to address all the questions and provide clarity on a performance and future outlook. So do you have any 40:35 40 minutes, 35 seconds further queries or wish to know anything more about GSM foil? Please feel free to reach out to our investor advisory XB4 advisory. We appreciate your continued 40:44 40 minutes, 44 seconds interest and support. Thank you once again. Take care. 40:50 40 minutes, 50 seconds Thank you on behalf of GSM Files Limited. That concludes this conference. 40:55 40 minutes, 55 seconds Thank you for joining us and you may now disconnect your lines. Thank you.