GSM Foils Ltd — Q4 FY26

GSM Foils Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=8ka13fKORuk Published: 3 weeks ago

0:00 Ladies and gentlemen, good day and welcome to the Q4 FI26 earnings conference call of GS Pauls Limited hosted by XP4 Advisory LLC. 0:12 12 seconds As a reminder, all participant lines will be in the listen mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:22 22 seconds Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that 0:31 31 seconds this conference has been recorded. I now hand the conference over to Mr. Agam Sha from XP4 Advisory L. Thank you and over. 0:42 42 seconds Thank you. Uh good morning everyone and welcome to the Q4 FI26 earnings conference call of GSM Limited. Today on 0:50 50 seconds this call we have with us Mr. Saga Girish Virish Banu Shali who is the whole time director and chief financial officer of GSM files limited. Uh this 1:00 1 minute conference call may uh may contain some forward-looking statements about the company which are based on beliefs, opinions and expectations as of today. 1:08 1 minute, 8 seconds Uh actual results may differ. This state uh the statements are not guarantees of future performance and uh involve risk 1:15 1 minute, 15 seconds and uncertaintities. With this I now hand over the call to Mr. Saga for his opening remarks. Over to you sir. 1:22 1 minute, 22 seconds Yeah. Good morning everyone. Thank you for joining us joining us on Q4 FY26 earning calls of GSM for Limited. I hope all of you have got an opportunity to 1:31 1 minute, 31 seconds look through our financial results and investor presentation which are uploaded on the stock exchange and also on the company website. During Q4 financial 26 1:38 1 minute, 38 seconds the ongoing the war between Iran and Israel and US emerged as a key macro development impacting global supply chain. Disruption lead to critical trade 1:47 1 minute, 47 seconds routes which in all the metals specifically aluminium resulting into a tremendous increase in the prices. It has impacted the availability and the 1:56 1 minute, 56 seconds pricing of all other petrochemical derivatives and embeddedries which are used in pharmaceutical packaging. 2:01 2 minutes, 1 second Although this situation also created a relatively advantage for Indian manufacturers as global companies are increasing diversifying source away from 2:09 2 minutes, 9 seconds the conflicted area and region and seek stable and supplying pattern. India's strong manufacturing base improving 2:17 2 minutes, 17 seconds self-reliance initiative and policy support of domestic capacity expansion has enabled it position for a reliable alternative in global supply chain 2:25 2 minutes, 25 seconds consequently the near-term cost pressure persist. Indian players across the pharmaceutical goods and packaging ecosystem are witnessing incremental 2:32 2 minutes, 32 seconds opportunities in export markets and other global vendor consolidation. 2:36 2 minutes, 36 seconds Domestic pharmaceutical packaging continue to witness a steady growth. 2:40 2 minutes, 40 seconds India remains a major global supply of generic medicines specifically in regulated markets such as the US and Europe which in turns drive high demands 2:48 2 minutes, 48 seconds quality compliance oriented and primary packaging material including our aluminium and strip and update on our expansion initiative 2:57 2 minutes, 57 seconds of manufacturing facilities. It is ramping up really well and now is operating at an improved utilization level. facility continues to support our 3:06 3 minutes, 6 seconds growth and expanding our pharmaceutical customer base particularly across western and northern region while also catering to incremental requirement from 3:13 3 minutes, 13 seconds our existing clients. Going ahead, we remain focused on further screening of this facility and aim to achieve an optimal utilization level at the end of 3:21 3 minutes, 21 seconds next financial year thereby enhancing overall operational efficiency and supporting future growth. I discussed earlier our quarter growth strategy 3:29 3 minutes, 29 seconds continues to move on diversification and strong operational execution. During the quarter we continued our strengthening market presence defend engagement with 3:37 3 minutes, 37 seconds our customers. Now talking about the numbers and performance in Q4. During Q4 financial year 26 the company delivered 3:44 3 minutes, 44 seconds a strong performance reporting a revenue of 8168.9 lakhs reflecting a robust 79.1% yearon-year growth. EITA stood at 3:54 3 minutes, 54 seconds 943.0 zero lakh registering a solid 62.5% increase compared to the same of last quarter. However, AIM has a 4:01 4 minutes, 1 second moderately by 120 basis point to 11.5% from 12.7% in Q4 financial year. The profit after tax for the quarter was 4:09 4 minutes, 9 seconds 627.9 lakhs up by 80.6% yearonear while pack margin improved by 20 basis. 7.7% 4:18 4 minutes, 18 seconds highlighting continued operating leverage despite some margin pressure at EITA level. The financial year 26 the company reported at L of 2.815.4 4:27 4 minutes, 27 seconds lakhs offering a strong 92.9% year on growth. The data stood at around 2978.3 4:35 4 minutes, 35 seconds lakhs reflecting a significant 95.9% increase over financial year 25 margin expanded of 50 basis point to 7.7% 4:44 4 minutes, 44 seconds underscoring company sustained pro and operational efficiency scale benefit and discipline execution with strong financial performance reflect the 4:51 4 minutes, 51 seconds residence of the company model and decision execution supported by healthy demand scalable operation and continued focus on profitability growth with that 4:59 4 minutes, 59 seconds I would like to open the floor for question and answers Thank you very much. We will now begin 5:07 5 minutes, 7 seconds the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone 5:14 5 minutes, 14 seconds telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants, 5:22 5 minutes, 22 seconds you are requested to use handset while asking a question. Ladies and gentlemen, we will wait till Sunday. 5:47 5 minutes, 47 seconds We will take the first question from the line of Deepak Podar from the fire captain. Please go ahead. Yeah, I'm audible sir. 5:54 5 minutes, 54 seconds Yeah, you are audible. 5:56 5 minutes, 56 seconds Yeah, thank you very much uh sir for this opportunity. Um so just wanted to understand first up this Ahmedabad plant 6:04 6 minutes, 4 seconds you are expecting optimum utilization by FI27N right? So what is our current utilization level? 6:10 6 minutes, 10 seconds So we have reached almost 25 to 30% over there. 6:14 6 minutes, 14 seconds So so currently we are at 25 to 30% and and what what would be this plant? I think it's 10,000 metric tons right. So 6:22 6 minutes, 22 seconds 10,000 metric t what would be revenue potential on an annual basis? 6:27 6 minutes, 27 seconds So if you look at an average basis price then on an average on a monthly basis I can comment once it reaches optimum capacity on a monthly run it would give 6:35 6 minutes, 35 seconds me around 30 to 35 crores. Only this plant right only only this only the 6:42 6 minutes, 42 seconds andai Vasai plant is about what 20 crores per month has already reached around 25 to 28 6:50 6 minutes, 50 seconds still there is like 10% more capacity left in that and with few year and spares and addition we can increase it up to 20%. So more around 6 to 7 crores 6:59 6 minutes, 59 seconds revenue can be pulled from the wasai plant. 6 to 7 crores more. Yeah. 7:05 7 minutes, 5 seconds So so currently we are we are doing 25 to 28 and 6 to 7 we can do more. I mean 7:12 7 minutes, 12 seconds and and Ahmedabad monthly can be 30 35 100%. Yes. 7:17 7 minutes, 17 seconds Okay. And so so I mean by March 27 I mean if you have to see so ideally your run monthly run rate can reach uh 60 crores. Would that be? 7:28 7 minutes, 28 seconds So that's the plan. Yeah. So that's the vision that we are taking forward currently. Okay. Okay. Okay. Okay. Understood. 7:34 7 minutes, 34 seconds Understood. And and in in March 26 I think we did about 29 crores right. So how much was from Ahmedabad plant? 7:41 7 minutes, 41 seconds [clears throat] 7:42 7 minutes, 42 seconds So around five five and a half. Five five and a half was from Ahmedabad. Okay. Okay. Okay. Okay. Okay. Okay. 7:51 7 minutes, 51 seconds Understood. And um on the commodity cycle, how should one look at I mean given the you mentioned near-term cost 7:58 7 minutes, 58 seconds pressure persist and the the like every day aluminium, LME even the MC is almost 8:06 8 minutes, 6 seconds on on all time high. So other than aluminium there are many other products like all the chemicals and all the petrochemicals that we use ethile 8:13 8 minutes, 13 seconds acetate everything even they have become like extremely expensive these days. So in the month of March we faced a little 8:22 8 minutes, 22 seconds bit pressure over that but eventually it was passed on but let's see how far does it go and it has to settle over the period of time but I don't know how long 8:30 8 minutes, 30 seconds would it take for the situation to normalize now. 8:33 8 minutes, 33 seconds Okay. So FI27 what sort of margins one should look at then I mean given the scenario we if you asking commitment then 8:40 8 minutes, 40 seconds definitely we'll try to sustain the current level if not increase but sustainance at current level and definitely be looked at sustain everything. Yeah. as in I mean around 11 and a half percentile. 8:52 8 minutes, 52 seconds Yeah. Yes. 8:53 8 minutes, 53 seconds Okay. Okay. Understood. And just last couple of things from my side. Why our receivables have become so high? 9:00 9 minutes So during the month of March specifically now majority of the farmer companies their fund got stuck because 9:07 9 minutes, 7 seconds of LC's or export payment or dollar payment because of all these conflicts going on the rates and all. So they had a special request from us if you can 9:15 9 minutes, 15 seconds manage this thing now and we actually we tried a level best to pull it down but maintain that relation and looking at 9:22 9 minutes, 22 seconds the market scenario even we had to like let go but then a good chunk of command was already received in first 10 to 15 days of April month so yeah things are 9:31 9 minutes, 31 seconds not quite normal now and on top of that we got a debt facility from ICA bank of around 15 cr in that phase so cash flow 9:40 9 minutes, 40 seconds is manageable with this new funds coming in now so We were able to like procure more from the purchase part to because 9:47 9 minutes, 47 seconds the rate was going almost around 8 to 10% plus in this month which eventually went the aluminum prices went up by around 50 rupees which is equivalent to 9:56 9 minutes, 56 seconds 10%. So we had a good inventory level in the month end the receivable part was slightly off but then things are very 10:03 10 minutes, 3 seconds well managed as on rate where we are sitting on 20th April majority which like around 30 40 cr of that has already been received so that's not an issue but 10:11 10 minutes, 11 seconds as on that day the current market scenario was such that like we had to give some liberty to our clients so that was a challenge that time but when funds 10:19 10 minutes, 19 seconds coming in everything went back this 94 crores around 30 40 crores have already Right. 10:26 10 minutes, 26 seconds And so so what is the normalized receivables or normalized working capital cycle? 10:30 10 minutes, 30 seconds Normally 60 to 70 days looking at this market scenario now 60 to 70 days is normal in farmer sector these days. Now 10:37 10 minutes, 37 seconds receivables you're saying or overall working equivalent to almost 60 65 almost 7 60 to 70%. 10:46 10 minutes, 46 seconds Okay. Um okay understood. That would be it from my side. I would like to wish you all the very best. Thank you so much. Thank you. 10:56 10 minutes, 56 seconds Thank you. We will take the next question from the line of Subhanu Bangal from PR head captain. Please go ahead. 11:03 11 minutes, 3 seconds Yeah. Good morning. Hope I am audible sir. 11:08 11 minutes, 8 seconds Yeah. Yeah. Thank you. Uh sir as you mentioned we see some cost pressure due to raw material increase. Uh uh you 11:15 11 minutes, 15 seconds already pass on everything. uh but in this time we see many competitor uh pass 11:23 11 minutes, 23 seconds on something and they win the order. Uh do you see some readiness increase in this segment? 11:32 11 minutes, 32 seconds Yes sir definitely there are challenges because the cost pressure increase from all the things that were there the conversion part and the baref that aluminium price is also increasing even 11:41 11 minutes, 41 seconds the chemicals are increasing. So somewhere or the other we need to pass on somewhere we need to absorb but it eventually settles in the volume that we 11:49 11 minutes, 49 seconds do obviously there's competitive pressure the farmer demanding low prices but then somewhere someone has to absorb set it's not like that only we are 11:57 11 minutes, 57 seconds increasing everyone is increasing the entire market knows the prices are going up and no one has the certaintity when it will go down even if you are saying 12:05 12 minutes, 5 seconds okay next one is going to go down then we may start absorbing it currently but then I don't think so this is the new normaly these days aluminium would be at 12:12 12 minutes, 12 seconds this range only and the chemicals would be at this range only. So yeah, everyone more or less is ready five or 10% here and there. The order shifts from here to 12:20 12 minutes, 20 seconds there. The motor doesn't affect the overall efficiency of the company. But we are always focus on cheap product. Uh 12:29 12 minutes, 29 seconds they they focus quality but uh if our competitor gives them very uh low price 12:36 12 minutes, 36 seconds or pass on little bit but they will uh definitely go for them go with them. But then for how long sir for a day or two 12:45 12 minutes, 45 seconds for a max month post that they can't do sir even they know that. 12:52 12 minutes, 52 seconds Yeah got it got it over the period of time the volume that we are doing now this thing stabilizes 12:59 12 minutes, 59 seconds if it starts going down then definitely we'll start also reducing our prices but this thing is going up almost every day. Yeah. 13:07 13 minutes, 7 seconds Yes. Uh sir my next question on employee cost. Uh if I see our employee cost here anymore reduce something but yeah 13:15 13 minutes, 15 seconds quarter and quarter increased but what happened uh last uh Q4 increasing? 13:23 13 minutes, 23 seconds Yes but 525 we see uh 10 employee cost. Uh what happened last? 13:31 13 minutes, 31 seconds What happened? 13:36 13 minutes, 36 seconds Last year talking about last year. So this year it was increased because of the aluminum alder plant coming in. So 13:44 13 minutes, 44 seconds during the month of Feb and March now many new employees and team was recruited over there because we are trying to 13:50 13 minutes, 50 seconds last year Q4 we saw I see our employee cost almost 10.8 here. Okay. 13:57 13 minutes, 57 seconds But this year only 6.9 something. 14:03 14 minutes, 3 seconds Then give me some time s to look at that. Maybe the salary part of all the directors this year we haven't taken that much 14:12 14 minutes, 12 seconds the exact give two times I will check and get back to you on this thing okay okay uh and our target is 60 per 14:20 14 minutes, 20 seconds month revenue how much between I will request you to kind question 14:26 14 minutes, 26 seconds okay see thank you we will take the next question 14:33 14 minutes, 33 seconds from the line of adjen from AJ Capital Please go ahead. Hi, good morning. 14:42 14 minutes, 42 seconds Yes, sir. Good morning. 14:44 14 minutes, 44 seconds Good morning, sir. Uh sir, uh I'm new to the company. So, I just want to understand uh some basics about the company and also certain competitive 14:52 14 minutes, 52 seconds advantages that you may have might be able to strike. uh I understand that you know this capac uh capacity that is 14:59 14 minutes, 59 seconds coming in and will go on live and an optimal capacity uh it gives you the guidance and you know some runway into FI27 but from business perspective I 15:08 15 minutes, 8 seconds want to understand more about what is the sustainable growth so once this capacity grows to full utilization then then we need to find additional capacity 15:16 15 minutes, 16 seconds I mean I just want to understand what competitive advantages do you have for a you know from a medium to long-term perspective and want to understand How 15:25 15 minutes, 25 seconds much of this growth sustainable and on what level where do you see like FID9 FB [clears throat] where do you see your revenues going to all these things the 15:35 15 minutes, 35 seconds capacity that you'll be operating in and especially what will be the advantage in this uh you know sector uh which helps 15:43 15 minutes, 43 seconds you you know give you gives you that confidence that your growth will be you know about industry some flavor around that 15:50 15 minutes, 50 seconds okay sir so specifically we're talking about the competitive edge sir then This thing I'm talking to everyone from day one the competitive edge in this line is 15:59 15 minutes, 59 seconds how well do you manage your working capital and how well your relationship are with your all the clients. So there is no other specific like this is very 16:07 16 minutes, 7 seconds basic business. So this is packaging business to pharma industry. So it does not involve any specialized business like solar or EPS or anything else. So 16:16 16 minutes, 16 seconds basically it's a basic pharma packaging business. So let me be very clear on this thing. The only competitive edge that we have is that volume that we are 16:23 16 minutes, 23 seconds doing. So we are more cost effective compared to our competitors. Secondly with more funds of this right issue and bank goodies we are able to provide more 16:31 16 minutes, 31 seconds credit to our clients. So these day client need credit. One is credit one is at a lower cost. So Indian pharma 16:38 16 minutes, 38 seconds industry needs these two things only. If you are able to treat them this well you are able to churn your cycle within 60 70 days then you're doing really good. 16:47 16 minutes, 47 seconds That's the only thing you need to do in this business sir. There are many other player doing in this thing but somewhere or the other they face cash and it's 16:56 16 minutes, 56 seconds very tough to get money from the clients and it's very easy to sell. It's very tough to get that money back and put it into your business and then turn it 17:04 17 minutes, 4 seconds again really fast. So this is what we are doing it very efficiently. We have very good mission with all our clients with this new client also that we are pitching. We are very much conservative. 17:15 17 minutes, 15 seconds We we are looking at each and every perspective before giving them credit in Ahmedabad also. 17:20 17 minutes, 20 seconds So so that the credit doesn't go on wrong answer sir because once the money gets stuck 9 data it's become very tough to do operation in this thing because 17:28 17 minutes, 28 seconds you don't get credit from a creditor sir because of the name that we have in the market we are getting hardly credits of around 30 40 days but for new players or 17:37 17 minutes, 37 seconds other small players they need to pay in advance so it's like they pay in advance and sell at 60 70 days it's become very tough to manage that working capital 17:46 17 minutes, 46 seconds we're talking about competitive edge and this is the competitive edge that we are taking forward looking at the growth part of financial year 28 29 then let me 17:54 17 minutes, 54 seconds be very frank we don't look at that much at this point of time so we're talking about one year currently at optimum 18:01 18 minutes, 1 second capacity we are commenting we are reach 60 K per month but on a very realistic and what do I say even if we do a very 18:10 18 minutes, 10 seconds like mediocre or average business in this year then also our top line for the entire year would be around 400 to 450 K 18:18 18 minutes, 18 seconds last year we closed around I guess 250 or 260 even if you don't do a very aggressive business or do the basic thing right what we are doing we'll 18:26 18 minutes, 26 seconds reach a top line around 400 to 450 we are quite confident on that part 18:35 18 minutes, 35 seconds follow up on that just obviously because the suppliers are big players you know the end consumer these big farmer 18:43 18 minutes, 43 seconds companies so I understand that you know the the margin is always there the credit is always there It's a difficult spot to be in. Uh but obviously it's a 18:52 18 minutes, 52 seconds sweet spot also because not many players would be existing in this middle space. 18:55 18 minutes, 55 seconds I just want to understand like what are the basic risk or threat that you know you're constantly working against. Uh 19:02 19 minutes, 2 seconds you can just highlight uh some part of the risk that is the only risk that I told you is if you're not able to manage your working capital well that's the 19:10 19 minutes, 10 seconds only risk. There's no other risk in this business. 19:14 19 minutes, 14 seconds And also if you're talking about the worst part scenario then indry you get few they'll pay you in like 120 19:23 19 minutes, 23 seconds days or 150 days that the only risk there's no other risk in this thing in that scenario you need 19:30 19 minutes, 30 seconds to add more money in the business to buy more material and run the show as simple as that. So there's no other risk as such in this business. 19:40 19 minutes, 40 seconds Just final question sir that uh obviously because you know you're in constant need of capital and I'm sure 19:49 19 minutes, 49 seconds you know debt is the way to go about but any more equity dilution on the horizon in the next 12 to 18 months because that is also the corporate cost you know 19:57 19 minutes, 57 seconds capital I mean I know that you need you need credit you need money but uh do you see 20:05 20 minutes, 5 seconds immediate plans of more equity dilution moving forward Currently sir, currently we haven't thought of that, sir. 20:16 20 minutes, 16 seconds Right. Thank you, sir. Thank you. 20:20 20 minutes, 20 seconds Thank you. We will take the next question from the line of Dili from Crown Capital. Please go ahead. 20:28 20 minutes, 28 seconds Hello. Uh good morning sir. Thank you so much for taking my question. Firstly, congratulations on a great sir. uh this 20:36 20 minutes, 36 seconds wanted to know like is there a very clear road map for the next uh 2 years but in terms of our capacity fully 20:44 20 minutes, 44 seconds utilized by March 27 so are we planning any effects because by FY 28 we'll be running at full capacity right like we 20:53 20 minutes, 53 seconds will not have any capacity left for us so for that we need to plan something in advance or what 21:00 21 minutes things are going on they are not fully concentrated for me to comment But definitely we are planning sir we won't 21:07 21 minutes, 7 seconds be stuck at this level also with like a quarter or two we may come up with a very good announcement of keep also but 21:14 21 minutes, 14 seconds currently things are under plan that's what I'll tell you but would it be more towards the backward integration and forward 21:22 21 minutes, 22 seconds integration or similar we are looking at forward integration only we not looking at backward integration currently okay okay 21:29 21 minutes, 29 seconds and like you know explaining like uh I think onex around let's say 60 hours and from that only I think in the first step 21:37 21 minutes, 37 seconds we'll be able to recover all our cost of capital so is it that can set up like I understand it's acceleration matters and 21:46 21 minutes, 46 seconds getting the working capital matters but isn't there a very low barrier to enter industry like how 21:54 21 minutes, 54 seconds there is no entry barrier in this thing to get entry in this thing is really easy but to fix it is really tough 22:02 22 minutes, 2 seconds okay okay fair enough so if the whole point is that key working capital is the biggest mode that you all have able to 22:08 22 minutes, 8 seconds manage that right so so I if you can disclose what is something that you're doing differently 22:16 22 minutes, 16 seconds than other players because I'm sure working capital relations everyone will have good so how are we being stringent 22:23 22 minutes, 23 seconds or how are we ensuring like we ask guarantees how do we 22:31 22 minutes, 31 seconds fair no issue And uh so that and with the increase in like our you know 22:39 22 minutes, 39 seconds turnover like I think it's 50 60% growth. So how much more debt we want to take up sir like uh because we just took 22:47 22 minutes, 47 seconds I think I say the bankable now let's see a quarter or two what the scenario goes also this warlike 22:55 22 minutes, 55 seconds situation how far the aluminium prices go up because the aluminium is running almost every day next year also we are expecting an increase around 5 to 7%. So 23:04 23 minutes, 4 seconds let's settle first being aggressive and this type of uncertain market is really tough. So let's settle first which wait 23:11 23 minutes, 11 seconds for a quarter or two then we'll look at something later. 23:15 23 minutes, 15 seconds Okay. Okay. Fine. I just wanted to understand like uh from right now in FI27 uh like like our growth will be 23:22 23 minutes, 22 seconds quarter on quarter only right like right I think we did 80 for now but uh as AMAR 23:29 23 minutes, 29 seconds comes in uh quarter on quarter up and doesn't know how it move 23:36 23 minutes, 36 seconds the aluminium volatility stops now we like this month we are facing two silence of material availability also but eventually it settles out like 23:45 23 minutes, 45 seconds within a week or 10 days. Now if the situation goes completely normal like what we were expecting a month back then 23:52 23 minutes, 52 seconds definitely cotton water with plant more ramping up the capacity it would remain same or it would increase. So this is what we are working at currently. 24:01 24 minutes, 1 second Okay. Okay. So there is no issue in ramping up sometimes procurement become 24:13 24 minutes, 13 seconds but you never know what may come up tomorrow and suppliers are diversified like we 24:20 24 minutes, 20 seconds have imported like I don't know just asking 24:28 24 minutes, 28 seconds but there are many in India we buy from much everyone now. 24:33 24 minutes, 33 seconds Okay. Okay. So, we have decent diversification in that. Yeah. Yeah. 24:37 24 minutes, 37 seconds Okay. Okay. Fair enough. Yeah. That's it from Thank you. 24:43 24 minutes, 43 seconds Thank you. We will take the next question from the line of Hers Karta from Robu Capital. Please go ahead. 24:52 24 minutes, 52 seconds Hi sir, thank you for the opportunity. Am I audible? Yes, you're audible. 24:57 24 minutes, 57 seconds Uh yes sir. So my question is uh in the previous question or you know uh previous to that question you said that 25:05 25 minutes, 5 seconds you know there are no entry barriers as such and you know aluminium prices are rising and advantage for you and the 25:12 25 minutes, 12 seconds competitive advantage for you is working capital and you know the volume that you do that gives you cost effectiveness. So the raw material prices are rising 25:21 25 minutes, 21 seconds working capital you have to be you know give credit to the customers. So how exactly are we able to pass on the margins or you know increase the prices? 25:31 25 minutes, 31 seconds As s last few days it's becoming tough but then eventually it will settle because 25:45 25 minutes, 45 seconds thing because in this industry every month a letter comes from Mandalo so this thing is going to increase or this thing is going to decrease so this 25:53 25 minutes, 53 seconds industry works on that only there's a rate every month on the on the second of the month so whatever passes on is 26:00 26 minutes passed on or whatever has been reduced has been taken back so this industry works in this only so it's not that tough to pass on but in this market 26:08 26 minutes, 8 seconds scenario where everything is increasing and somewhere or the other we need to absorb certainty and pass on certainty but eventually believe in the volume that we are doing it will settle out. 26:18 26 minutes, 18 seconds Uh so your contracts are for what tenure exactly? 26:22 26 minutes, 22 seconds So there are no specific contracts in our business. It depends upon PO to PO because every month the rate changes 26:29 26 minutes, 29 seconds right so you rate every month to the customer. Correct. 26:34 26 minutes, 34 seconds Right. All I understood and said that we have to do the incremental sales of let's say 200 odd cr because you said 26:41 26 minutes, 41 seconds you know even if we do a normal year it would be 400 to 450 or of top line. 26:47 26 minutes, 47 seconds So uh so what exactly will be your selling strategy? Do you know you just double down your top line except for the 26:54 26 minutes, 54 seconds new land sir. So there's huge market over there in Gujarat, Indor even in the 27:01 27 minutes, 1 second northern part. So just be very careful with all the right the retailers that we are working with and slowly slowly ramp up over there. 27:10 27 minutes, 10 seconds So are you going to sell it to the your existing customers or you are going to find new customer because first focus would be existing only sir but for certain time even we need to enter new clients also. 27:22 27 minutes, 22 seconds Right. Understood. Given the current scenario you know I know it is very tough but in H1 what margins can we expect? Would it be lower than the 27:30 27 minutes, 30 seconds current one? Okay sir, I won't be able to comment on that because the market is really uncertain sir even you know that thing. 27:38 27 minutes, 38 seconds Right. Right. 27:40 27 minutes, 40 seconds Okay. And just the last question uh so I was just I'm just looking at the margins increased from 7% to 11 12%. In the last 27:49 27 minutes, 49 seconds two three years so what was the reason exactly? 27:53 27 minutes, 53 seconds In the volume that we're doing sir if that are this thing the volume increasing the margin increases that the working uh what do you call the fixed 28:00 28 minutes cost of the operating cost come down we are able to procure more material in this rising trend now inventory game 28:07 28 minutes, 7 seconds also comes into picture all right thanks 28:16 28 minutes, 16 seconds thank you we will take the next question in the line of Kulkarni from Go ahead. 28:25 28 minutes, 25 seconds Hiation set of numbers. Uh so I just wanted to check uh do we have any LOIs or in place because see there capacity 28:33 28 minutes, 33 seconds almost of what we have at the moment. So I just wanted to know what is the order visibility that we have at the moment. 28:40 28 minutes, 40 seconds So that's what I told you there is no such as contract or orders or that thing. The PO comes in every month. PO is normally executed within 2 to 3 days. 28:49 28 minutes, 49 seconds It doesn't take time in conversion. 28:52 28 minutes, 52 seconds So there's no specific contract or visibility but yeah we were quite confident with the set of customers that we have every month this the run rate 29:00 29 minutes would keep on be same or keep on increasing understood and we'll be tapping new 29:08 29 minutes, 8 seconds customers as well uh uh with the uh newer capacity and is there any new product that they're launching or would the new capacity be uh catered towards your existing uh product portfolio? 29:18 29 minutes, 18 seconds Sorry come again. uh would the newer capacity be catered to our administr? 29:27 29 minutes, 27 seconds Okay sir. First the focus would be to cater the existing client only because they are well tried and trusted and genuine old clients where we have built 29:34 29 minutes, 34 seconds a very good relationship post that we'll enter new markets also product would remain the same more or less we get certain good opportunities 29:42 29 minutes, 42 seconds with new products that we are working quietly like certain there are few products but we are not that aggressive with this market scenario currently with 29:50 29 minutes, 50 seconds Ali William and all this availability let that settle first then we'll come up with new products currently it's good to hold up the things that you are doing 29:57 29 minutes, 57 seconds and be very safe and steady in this market because the market is really volatile these days and that is open to everyone so it's not only affecting us 30:04 30 minutes, 4 seconds affecting everyone understood and uh so last question from my end uh the debt capacity that we have 30:12 30 minutes, 12 seconds at the moment would that be uh towards working capital financing or do we have any other plans in mind? No sir, we are currently looking at debt only and 30:20 30 minutes, 20 seconds currently I guess we are well placed the bet that we have we able to execute well. So the next decision would come in 30:27 30 minutes, 27 seconds post like second quarter ending we'll look at something new. Currently we are quite good to run 6 months. 30:35 30 minutes, 35 seconds Understood. 30:42 30 minutes, 42 seconds Thank you. We will take the next question from the line of sand diction from Arur partner. Please go ahead. 30:50 30 minutes, 50 seconds Hi, can you hear me sir? Yes sir. 30:54 30 minutes, 54 seconds Okay. So uh you mentioned this number 450 crores of topline. Uh just wanted to clarify this is FYI27 uh or is it FI28? 31:10 31 minutes, 10 seconds Hello. 27 sir. 31:13 31 minutes, 13 seconds 27 sir. Thank you. Second question you mentioned that if at all there would be any uh integration it would be forward integration. 31:21 31 minutes, 21 seconds Correct. Right. Now I'm sorry I mean I 31:29 31 minutes, 29 seconds what would be the kind of forward this can give you some idea but more specialized printing units or conversion unit where we get all the 31:39 31 minutes, 39 seconds pharma companies in local and export also will come in printing and farming. Okay. 31:59 31 minutes, 59 seconds Yes. 32:00 32 minutes compared to what I mean incremental 32:13 32 minutes, 13 seconds giving credit to 90 days then obviously you can dictate your transition and good margin also huh so I'm saying that 32:20 32 minutes, 20 seconds assuming that that policy stays the same of working capital uh how much incremental will we get over the 32:28 32 minutes, 28 seconds existing that you send 8 to 10% almost 32:36 32 minutes, 36 seconds okay period of 60 days sir 60 to 90 days 32:42 32 minutes, 42 seconds so 60 to 90 days later 32:53 32 minutes, 53 seconds and is any is this is this plan uh sort of sometime in the future is something 32:59 32 minutes, 59 seconds that is concrete being worked on definitely. Okay. 33:07 33 minutes, 7 seconds So maybe 6 months to a year maybe sometime we can Yes. 33:13 33 minutes, 13 seconds Okay. Thank you. Thank you very much. 33:18 33 minutes, 18 seconds Thank you very much ladies and gentlemen. Due to time constraint we will take that as the last question for today. And with that concludes the 33:26 33 minutes, 26 seconds question and answer session. I now hand the conference back to Mr. Saga Dhanushi for closing comments. Over to you. 33:34 33 minutes, 34 seconds Thank you all for joining us on today's running call. We hope we'll be able to address all the questions and provide a clarity on the performance and future outlook. So if you have any further 33:42 33 minutes, 42 seconds queries or wish to know more about GSM file, please feel free to reach out to our investor relation advisory X4 advisory. We appreciate your continued 33:50 33 minutes, 50 seconds interest and support. Thank you once again. Take care. Have a good day. 33:55 33 minutes, 55 seconds Thank you sir. On behalf of GSM Falls Limited that concludes this conference.