Kanpur Plastipack Ltd — Q3 FY26

Kanpur Plastipack Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=p1JymhqnPpw Published: 2 months ago

0:00 Good morning everyone and welcome to the Q3 and 9month FI26 earnings call of Kpur Plasty Pack Limited. Today we have with 0:10 10 seconds us Mr. Manoj Agarwal, chairman come managing director and Mr. Shashank Aarval, deputy managing director. We 0:17 17 seconds will begin with opening remarks from the management followed by an interactive Q&A session. Please note that this discussion may include forward-looking 0:25 25 seconds statements which should be viewed in conjunction with the risks and uncertainties that the company faces. As a reminder, all participant lines will 0:33 33 seconds be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance 0:40 40 seconds during the conference call, please signal an operator by pressing star pen zero on your touchstone phone. Please note that this conference has been 0:49 49 seconds recorded. I now hand over the conference call to Mr. Manoj Agarwal, chairman of managing director for opening remark. 0:57 57 seconds Thank you and over to you sir. 1:00 1 minute Thank you. Good morning everyone and welcome to Kpur plastic packs earnings call for the third quarter and the 9 1:09 1 minute, 9 seconds month period ended 31st of December 2025. 1:13 1 minute, 13 seconds Thank you for joining us this morning for your continued engagement with the company. 1:18 1 minute, 18 seconds Q3 financial year 26 has been an important and defining quarter for panorastic pack. While the financial 1:25 1 minute, 25 seconds performance reflects steady growth, the real progress during the quarter has been on the strategic and structural side as we continue to reshape the 1:34 1 minute, 34 seconds company for the next phase of our sustainable growth. 1:38 1 minute, 38 seconds Globally, the industrial packaging and technical textiles industry continues to evolve. Customers today are increasingly 1:46 1 minute, 46 seconds focused on traceability, regulatory compliances, sustainability and customized solutions rather than commodized volumes. 1:57 1 minute, 57 seconds In parallel, downstream industries such as automotive, infrastructure, food and consumer durables are driving demand for 2:05 2 minutes, 5 seconds higher performance application specific textile solutions. 2:09 2 minutes, 9 seconds These trends favor manufacturers that combine scale, engineering capability and regulatory discipline areas where KU 2:18 2 minutes, 18 seconds Paripath has built consistent strength over the years. 2:22 2 minutes, 22 seconds Export platform and global presence. Our exportled model continues to remain resilient with Europe being our largest 2:30 2 minutes, 30 seconds market. During the year, we completed the acquisition of Val Ventures in the UK, which strategically strengthens our presence in a key regulated geography. 2:41 2 minutes, 41 seconds While the near-term financial contribution is limited, the platform sins are long-term export positioning and provides closer market access over time. 2:51 2 minutes, 51 seconds Extension into value added and B2C linked applications. 2:56 2 minutes, 56 seconds During the quarter, we advanced our transition towards value added and B2 ceilings applications. While FIBC 3:03 3 minutes, 3 seconds remains the backbone of our business, we are conscious consciously expanding into premium polyropy and yarns and non-poin 3:11 3 minutes, 11 seconds fabrics that find applications in automotive interiors, furniture, luggage, footwear, 3:19 3 minutes, 19 seconds geoexiles and lifestyle products. 3:23 3 minutes, 23 seconds These segments are less cyclical, more specificationdriven and offer superior margin visibility over time. 3:32 3 minutes, 32 seconds This is not a tactical shift for us but a long-term strategic pivot. We believe the future of manufacturing lies in 3:41 3 minutes, 41 seconds combining industrial scale with consumer relevance where products are engineered for performance, compliance and 3:49 3 minutes, 49 seconds sustainability rather than price aloness. 3:53 3 minutes, 53 seconds manufacturing strength and capacity building. We continue to strengthen our manufacturing and operational foundation, progress on the Fabacy, 4:03 4 minutes, 3 seconds capacity expansion, completion of the new warehouse for trading division, and the planned role management and 4:10 4 minutes, 10 seconds automation initiatives. All at unit 3 are aimed at improving throughput efficiency and working capital 4:17 4 minutes, 17 seconds discipline as volumes scale up. These initiatives reinforce our readiness for the next phase of growth while 4:26 4 minutes, 26 seconds maintaining cost competitiveness technology and capability development. 4:32 4 minutes, 32 seconds We also advanced our technology roadmap through the incorporation of SECAN Private Limited, a joint venture with 4:41 4 minutes, 41 seconds SEGMA spa of Italy. This partnership enhances our access to advanced high performance yarn 4:49 4 minutes, 49 seconds technology and supports our entry into premium textile applications. It strengthens our technical depth and broadens our product capabilities over time. 5:00 5 minutes Sustainability. 5:02 5 minutes, 2 seconds Sustainability continues to remain embedded in our operational model. 5:07 5 minutes, 7 seconds Nearly half of our energy requirements are now met through renewable sources and we continue to invest in recyclable 5:13 5 minutes, 13 seconds product designs, zero liquid discharge processes and traceability systems capabilities that are increasingly 5:21 5 minutes, 21 seconds become non-negotiable for global and consumerf facing customers. 5:27 5 minutes, 27 seconds In summary, Q3 financial year 26 reflects steady 5:34 5 minutes, 34 seconds execution across exports, product development, manufacturing capacity and 5:40 5 minutes, 40 seconds technology enhancement. We are building plastic pack into a solutions globally 5:47 5 minutes, 47 seconds relevant manufacturing platform with a balanced mix of B2B scale and B2C linked premium application. 5:57 5 minutes, 57 seconds I now invite our deputy managing director Mr. Sashanka Garwal to take you through the detailed financial performance and constitution parities. 6:09 6 minutes, 9 seconds Thank you and good morning everyone. I will take you through the financial and operational performance for Q3 and 9 months ended December 25 followed by our 6:17 6 minutes, 17 seconds priorities going forward. For Q3 FI26 the company reported a total income of 195.2 2 crores representing a 6:26 6 minutes, 26 seconds year-on-year growth of approximately 19%. 6:29 6 minutes, 29 seconds Aida for the quarter stood at 17.8 crores with an abata margin of 9.1%. 6:35 6 minutes, 35 seconds The net profit increased to 9.2 crores up by about 23% yearonear. 6:41 6 minutes, 41 seconds The EPS standing at 3.9. 6:45 6 minutes, 45 seconds Margins remain stable sequentially and reflect a balanced product mix, steady export demand and continued cost discipline. 6:54 6 minutes, 54 seconds Revenue excluding trading activities remain stable at approximately 147.8 crores indicating sustained core 7:02 7 minutes, 2 seconds manufacturing performance for the 9month period. Total income 7:11 7 minutes, 11 seconds stood at 543.6 6 crores a growth of nearly 20%. Y on Y. Aberita increased to 7:19 7 minutes, 19 seconds 49.7 crores with margins improving to 9.1% while net profit sharply rose to 23.7 crores reflecting improved 7:28 7 minutes, 28 seconds operating leverage, tighter cost control and a higher contribution from value added products. 7:34 7 minutes, 34 seconds Exports continue to anchor our performance. During Q3 FI26, exports volume were 5,900 tons, while the 7:43 7 minutes, 43 seconds 9-month ended period was about 18,895 metric tons. 7:48 7 minutes, 48 seconds In Q3, Europe accounted for 62% of Q3 exports, followed by South America at 17% and North America at 15%. With the 7:56 7 minutes, 56 seconds balance coming from Asia, Australia and Africa. 8:00 8 minutes This diversified geographical mix provides resilience against regional demand fluctuations and supports consistent capacity utilization. 8:07 8 minutes, 7 seconds Importantly, 80 to 85% of our business comes from repeat end users reflecting long-standing relationships, product 8:16 8 minutes, 16 seconds reliability, and compliance with global standards. This repeat led model provides strong revenue visibility and reduced volatility. 8:26 8 minutes, 26 seconds From an enduser perspective, our revenues were well diversified across industries. 8:32 8 minutes, 32 seconds Agro and food industry 44%, industrial packaging 23%, construction about 12%, 8:40 8 minutes, 40 seconds agriculture 8%, automotive 7%, mining and minerals 6%. The diversified industry exposure 8:49 8 minutes, 49 seconds reduces concentration risk and balances cyclical movements across sectors. The increasing share of food and automotive applications also supports higher 8:57 8 minutes, 57 seconds compliance driven and value added offerings. From a product mix standpoint, FIBC continues to be the core growth engine in both value and 9:05 9 minutes, 5 seconds volume terms. At the same time, we see a gradual traction in premium polyropene yarns and specialized fabric solutions, 9:14 9 minutes, 14 seconds particularly in fashion and automotive applications. 9:20 9 minutes, 20 seconds This shift supports improved realizations and enhanced earnings quality over time. 9:26 9 minutes, 26 seconds Operationally, the quarter focus on execution and readiness for scale. The new IOCL trading division warehouse at Visioner Road has been completed 9:35 9 minutes, 35 seconds improving logistics efficiency and reducing dependency on rented facilities. The modern role management system is under design and will will 9:43 9 minutes, 43 seconds enhance inventory control, throughput efficiency and safety. The construction of the building of FIBC expansion at unit 3 is approximately 30% completed. 9:55 9 minutes, 55 seconds Target for completion in May 26. 9:58 9 minutes, 58 seconds This will add an incremental target of up to 6,000 tons perom in the next 5 years, supporting higher conversion and margin improvement. 10:09 10 minutes, 9 seconds Our green field technical textile nonwoven project based on needle punch technology marks a significant diversification milestone. This facility 10:17 10 minutes, 17 seconds will address demand from automotive interiors, geoexiles, artificial leather, carpets and footwware industry. 10:25 10 minutes, 25 seconds It will be scaled in phased demandled manner to ensure capital efficiency and relationship management. 10:34 10 minutes, 34 seconds On the strategic side, Valex Ventures acquisition provides a direct platform in the UK and acts as a gateway to broader European markets in the times to 10:42 10 minutes, 42 seconds come. The Sugoma joint venture under SEAN private limited strengthens our technology capabilities and high performance polyropene yarns and 10:50 10 minutes, 50 seconds supports our entry into premium textile applications. Product alignment and market development in initiatives are currently underway with full swing. The 10:59 10 minutes, 59 seconds initiative is structured as a long-term capability expansion aligned with our premium application roadmap. 11:06 11 minutes, 6 seconds Revenue contribution will scale progressively as product approvals, market acceptance, customer awareness 11:13 11 minutes, 13 seconds mature over time. It is expected to enhance the overall quality and diversification of our earnings profile. 11:22 11 minutes, 22 seconds Looking forward way ahead, our strategy is built around four clear priorities. 11:28 11 minutes, 28 seconds strengthening the FIBC core through capacity expansion, higher value added mix and deeper penetration in regulated 11:35 11 minutes, 35 seconds export markets. Second, scaling B2C linked premium applications in polypropene yarns and non-woven 11:43 11 minutes, 43 seconds technical textiles through OEM partnerships and technology-led differentiation. 11:49 11 minutes, 49 seconds Third, disciplined resource allocation with a focus on brownfield expansion, faster payback projects, and balance sheet strength. 12:00 12 minutes Fourth, sustainability and technology-led competitiveness, ensuring long-term relevance with global 12:06 12 minutes, 6 seconds customers. To conclude, Q3 and 9 month FI26 demonstrate stable growth, diversified revenue streams, strong 12:15 12 minutes, 15 seconds customer retention, and disciplined execution. With a balanced industry mix, and increasing share of value added applications, we are structurally 12:22 12 minutes, 22 seconds strengthening the business for a long-term profitability. 12:26 12 minutes, 26 seconds Thank you. We can now begin the question and answer session. 12:33 12 minutes, 33 seconds Thank you very much. We will now begin the question and answer session. 12:37 12 minutes, 37 seconds Anyone who wishes to ask a question may press star N1 on their touchtone telephone. If you wish to remove 12:45 12 minutes, 45 seconds yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a 12:52 12 minutes, 52 seconds question. Ladies and gentlemen, we will wait for a moment while the question Q assembles. 13:20 13 minutes, 20 seconds The first question is from the line of Anikkar, an individual investor. Please go ahead. 13:30 13 minutes, 30 seconds Hello. Good morning. Yes, you're audible. Hello. Am I audible? Yes. 13:37 13 minutes, 37 seconds Yeah. Uh so uh uh sir um I have some few questions. So in terms of our uh uh 9 13:45 13 minutes, 45 seconds month uh financials so I can see that uh 13:51 13 minutes, 51 seconds 9 month p search to our 200% yi with strong iita expansion. So just wanted to 13:58 13 minutes, 58 seconds understand uh what strategic action in terms of pricing or the product mix or the geographical diversification 14:06 14 minutes, 6 seconds contributed most to this turnaround just to get some clarity if you can elaborate on it. 14:12 14 minutes, 12 seconds So uh you're absolutely right so it was driven by favorable product mix operating efficiency gains in the Rafia segment which is basically the FIDC and 14:21 14 minutes, 21 seconds fabric and uh disciplined cost management. It also reflects the absorption of fixed cost as volume 14:28 14 minutes, 28 seconds scaled along with the strategic exit of the lower margin CP vision. 14:33 14 minutes, 33 seconds So this together improve the overall profitability quality. 14:38 14 minutes, 38 seconds Uh additionally the reduced financial cost, stronger manufacturing contribution amplified the bottom line impact. 14:46 14 minutes, 46 seconds Okay. Okay. Got it. Got it. 14:49 14 minutes, 49 seconds And sir um in terms of this new expansion and the new announcement which has been there uh in terms of diversification into the premium PP 14:57 14 minutes, 57 seconds polyropylene yarn and nonwoven fabric and uh uh can you throw some light about uh JV partnership 15:06 15 minutes, 6 seconds and uh how it is going to add uh value to our FI27 revenue and the margins if you can uh give some idea. 15:15 15 minutes, 15 seconds So u we're talking about the PP yarns right? Yeah. Yeah. Correct. 15:21 15 minutes, 21 seconds So uh right now it is at a stage where we are commissioning the project. Uh it is absolutely into the luxury u outdoor 15:29 15 minutes, 29 seconds furniture premium segment. Uh this year we expect a revenue of about 20 to 25 15:36 15 minutes, 36 seconds crores uh in this year. Uh in the next financial year sorry. Um it is a slow 15:43 15 minutes, 43 seconds gestation project but the market expansion can have uh very rapid growth once we start getting success. 15:53 15 minutes, 53 seconds Okay. Okay. And how much capex is uh applied for this? I mean so I clarified this last time as well. 16:02 16 minutes, 2 seconds So uh it's a 50/50 joint venture which is an an asset light model. uh the investment is only 20 lakh rupees from 16:09 16 minutes, 9 seconds each partner as capital contribution because this is just a marketing company the manufacturing will remain with KURO plastif uh itself. 16:18 16 minutes, 18 seconds Okay. 16:19 16 minutes, 19 seconds So the manufacturing capability will come under contour plastif but the sales and the technology capability will come under the joint venture. 16:26 16 minutes, 26 seconds And sir, who are the who are the competitors uh for us like uh are we comparing uh with us with these uh Jagdamba polymers and the pyramid technoplast? 16:36 16 minutes, 36 seconds No. Uh so this is a totally different segment. Uh this is uh recyclable 16:42 16 minutes, 42 seconds sustainable uh dope dyed luxury polyropylene yarn. So uh this currently is not produced in India at all. 16:54 16 minutes, 54 seconds Okay. Okay. And s uh just one last question um in terms of the industry trend which has been going on. So uh 17:01 17 minutes, 1 second with India's flexible packaging market uh is uh as seen that projected to grow uh very fast uh near the double digit cagr. 17:11 17 minutes, 11 seconds So uh where does the management see the largest addressible opportunity in terms of uh the FMCG farmer or the industrial sector? 17:21 17 minutes, 21 seconds Uh so I mean u the FMCG and pharma sector uh in India we are not focused on 17:30 17 minutes, 30 seconds that neither the industry nor the uh segment because we are primarily into exports as far as packaging is concerned. Uh but yes you are right the 17:39 17 minutes, 39 seconds growth is there and we do see u uh in pockets there are small demands that are coming up which were not there before. 17:49 17 minutes, 49 seconds Okay. Okay. And for any new development in terms of new product uh that we are coming in, 17:57 17 minutes, 57 seconds so we are constantly innovating in the FIBC segment. Uh there are uh it's a very customized innovative design 18:04 18 minutes, 4 seconds process that happens uh that happens continuously. There is not a specific product that I would like to speak about. But uh right now the entire focus 18:13 18 minutes, 13 seconds in FIBC is to uh be customer ccentric and driven so that we can provide customized designs to them to increase their efficiency. 18:22 18 minutes, 22 seconds Okay. Okay. Okay. And sir uh uh if you can give me a break up of the domestic and export revenue. 18:30 18 minutes, 30 seconds Yeah just a moment. So quarter three uh exports were about 103 crores and domestic was about 70 crores. 18:40 18 minutes, 40 seconds Okay, got it. 18:43 18 minutes, 43 seconds Got it. Got it. Thank you, sir. This is from my side and all the best for the future. Thank you. 18:52 18 minutes, 52 seconds Thank you. The next question is from the line of Pua from HDFC Bank. Please go ahead. 18:59 18 minutes, 59 seconds Uh yeah. Hi sir, good morning. Uh so I wanted to understand the rational for uh 19:06 19 minutes, 6 seconds basically the margin difference between your FIBC product and your CP woman and the uh textile segment 19:17 19 minutes, 17 seconds margin currently and going forward how this AITA margin would be shaping in probably FI27 guidance. So uh as uh you 19:26 19 minutes, 26 seconds must have seen the blended ability is about 9%. The manufacturing abida is at about 10 and a half%. Within the 10 and 19:35 19 minutes, 35 seconds a half% if you break it down into all the four product segments that we are into which is FIBC, PP woven fabric uh commodity multifilament yarn and UV 19:43 19 minutes, 43 seconds master batch. uh the aberator margins of fabric is about at 7% multifilament is 19:50 19 minutes, 50 seconds also at about 7%. Which makes fibc go at about 12 1/2 to 13 and 1/2%. 19:56 19 minutes, 56 seconds So that is the reason why we continuously are changing our capacity from fabric to fibc and over the next uh 20:04 20 minutes, 4 seconds couple of years you will see that uh uh change in the blended margin as well. 20:10 20 minutes, 10 seconds Got it. And right now FIBC is how much uh composition of our total business? 20:16 20 minutes, 16 seconds One second. So this year uh in terms of the manufacturing turnover it would be about 50 uh 54% of the manufacturing. 20:24 20 minutes, 24 seconds 54%. And going forward also uh are we uh like going forward this is expected to 20:31 20 minutes, 31 seconds increase to what 80 90% level FIBC contribution. 20:35 20 minutes, 35 seconds So FIBC is for 54, fabric is 28, multifilament is 10 and others are 8%. 20:42 20 minutes, 42 seconds So MF yeah I'm answering that. So MFI and others will remain at 10 and 8. This 20:48 20 minutes, 48 seconds fabric 28 will become about 10% and this 54% will become about 70 to 75%. 20:56 20 minutes, 56 seconds 70 to 75%. Got it. Yeah. and FIBC will always be focused towards export only or are we planning to double down in the domestic uh segment. 21:06 21 minutes, 6 seconds So out of the total sale of FIBC 90% is exports 10% is domestic. We will always remain at that ratio in the next 3 four years. 21:16 21 minutes, 16 seconds Uh got it understood. Understood. Any upcoming capeex uh uh uh capeex plan or inorganic acquisition plans that we have? 21:26 21 minutes, 26 seconds Yes. So there is a 99 cr uh rupee capex that we announced uh last uh quarter. Uh 21:33 21 minutes, 33 seconds it has multiple uh sections. So uh the it has a phase capex program uh 21:42 21 minutes, 42 seconds which includes 6,000 tons of capacity expansion over the next 5 years uh in a new building in unit 3 itself. 21:50 21 minutes, 50 seconds So this will help us changing the fabric capacity to fibc capacity uh because the current utilization levels in core divisions remain healthy 21:59 21 minutes, 59 seconds justified and um for expansion. Uh secondly there is a role modern role management system that we are building. 22:07 22 minutes, 7 seconds This will enhance yield control, reduce wastage, inventory management and the time it takes to uh fetch inventory. 22:15 22 minutes, 15 seconds This should be completed by about July this year. 22:19 22 minutes, 19 seconds Uh the third portion of it is the technical textiles uh nonwoven needle punch. Uh that would go into the 22:26 22 minutes, 26 seconds automotive uh segment uh artificial leather footwear, geoexiles and car filtration fabrics. So that is at about 55 crores. 22:38 22 minutes, 38 seconds Okay, got it. And any inorganic acquisition plants? Not at the moment. 22:46 22 minutes, 46 seconds Not at the moment. Okay, I think uh that was it from my side. Uh thank you sir. 22:52 22 minutes, 52 seconds Yeah, thank you. The next question is from the 22:59 22 minutes, 59 seconds line of sake Kapoor from Kapoor and Company. Please go ahead. Hello. 23:08 23 minutes, 8 seconds Hello. Yes. Uh we can hear you. 23:14 23 minutes, 14 seconds Yeah. Namaskar sir. Uh namaskar sir. 23:18 23 minutes, 18 seconds Uh sir firstly uh if you could just uh give us some understanding of how with the tariff uh part of the story being 23:27 23 minutes, 27 seconds put to rest and uh the current tariff from for for us uh being uh settled at 18%. Uh if you could just give us some 23:36 23 minutes, 36 seconds color how has the business environment uh and the fillers you can share with uh the investing community. 23:44 23 minutes, 44 seconds So thank you sake for the question. Uh first of all I do not think it is at rest until it is really at rest. So uh 23:52 23 minutes, 52 seconds although 18% has been announced but what has been formally uh taking place at the ground level is that there is 25% tariff 24:00 24 minutes instead of 18%. For the time being until the 18% executive order comes in. Uh it is comes with great relief to the 24:07 24 minutes, 7 seconds industry because there was a migration that was happening from uh India to other countries. So that will completely 24:15 24 minutes, 15 seconds stop in the short term and the medium term. 24:19 24 minutes, 19 seconds In addition to this what it does it it boosts u demand in other countries as well which are dependent on US. So we do 24:28 24 minutes, 28 seconds see renewed demand coming from Africa and Europe who were ex exporting to the US as well uh because it's a positive 24:37 24 minutes, 37 seconds sign from the uh US government that they are um making tariffs flexible. 24:45 24 minutes, 45 seconds The EU FDA is also an extremely important point that has come in because from a long-term u sustainability of the 24:53 24 minutes, 53 seconds business in India uh with a 0% tariff into EU uh India will remain the most 25:00 25 minutes competitive across other emerging uh manufacturing countries. So it's uh both 25:07 25 minutes, 7 seconds the uh US uh tariff deal and EU FDA are extremely good things uh for the long-term and the medium-term future. 25:17 25 minutes, 17 seconds Uh sir, can you give us some more color on the order booking scenario? So I think so when we were speaking uh post 25:24 25 minutes, 24 seconds quarter to corn call you did alluded to the risk uh that were pertaining with the extension of 50% tariff affecting 25:33 25 minutes, 33 seconds the dynamic post that I think so even the crude oil prices have also inched up 25:40 25 minutes, 40 seconds so I think so there must be some uh uh implic 25:47 25 minutes, 47 seconds if if you could just explain firstly the order booking scenario and uh the impact of uh the higher crude prices. 25:56 25 minutes, 56 seconds So the order book uh remains extremely stable. Um nothing to be worried about. 26:02 26 minutes, 2 seconds Uh neither it is too long nor it is too short. It is absolutely where we are comfortable. In addition to this uh 26:08 26 minutes, 8 seconds there has been u heavy shortage of joot in India. So the government of India has 26:15 26 minutes, 15 seconds uh diluted the Jude packaging act which now allows polyropylene in woven saxs to use uh to be used in food grain 26:23 26 minutes, 23 seconds packaging. So this has uh instilled a short-term u boost and demand in the domestic 26:31 26 minutes, 31 seconds market. So that has helped the order book significantly as well on the raw material side. Yes, you are right. like 26:38 26 minutes, 38 seconds all other commodities and uh crude oil has also gone up or polymer has also gone up by about 10 to 15%. But as you 26:46 26 minutes, 46 seconds know in our industry this gets passed on to the customer. Um so there is no inflation risk from that standpoint. 26:57 26 minutes, 57 seconds Okay. I was pointing when I said this was because the reason I we found that for the purchased stock in trade uh for this quarter was significantly higher. 27:07 27 minutes, 7 seconds So if you could just explain uh the the nature of the same answer and sir secondly uh export volumes were uh lower 27:15 27 minutes, 15 seconds I think so the tonnage was 6600 for Q2 and it was lower by I think so 10% for 27:22 27 minutes, 22 seconds uh Q3 at 5928 but margins have expanded so if you could just explain product mix and going ahead what can we expect? 27:35 27 minutes, 35 seconds So uh this time the October and November months were a little special because there were uh uh 27:43 27 minutes, 43 seconds lot of holidays on weekdays and uh the number of working days were a little lower. Uh because it's a labor intensive industry, we are dependent on manpower. 27:54 27 minutes, 54 seconds uh and we saw that uh this time the availability of manpower had significantly gone down due to the festive cena and the marriage 28:02 28 minutes, 2 seconds season in this quarter that led to a lower production figure itself. Also we saw 28:10 28 minutes, 10 seconds some challenges in the month of October uh related to power uh in our uh city. 28:16 28 minutes, 16 seconds uh this also led to a little bit of production challenges but yes you are right there was a shift in the product mix where FIBC's as a percentage went up 28:25 28 minutes, 25 seconds which is our stated goal that we will continue to do margin maximization but the margins have also improved because of a weak uh rupee against 28:34 28 minutes, 34 seconds dollar and euro. So uh both these things put together we saw the results being what they were 28:43 28 minutes, 43 seconds and on the on the trading part of the uh so uh so trading uh has been used as an 28:52 28 minutes, 52 seconds opportunity whenever it comes. um it is not our core activity but if it helps us to get something in the contribution we 29:00 29 minutes continue to do that because it helps us reduce our overall raw material cost for our manufacturing as well. So uh 29:08 29 minutes, 8 seconds sometimes it will go up sometimes it will go down uh it will not remain consistent. 29:14 29 minutes, 14 seconds Okay. Why I was trying to understand this aspect was that you have earlier in the previous call alluded to the fact 29:21 29 minutes, 21 seconds that key from H1 revenue H2% that is what the trajectory has been so 29:29 29 minutes, 29 seconds once we take this uh when we when we are working with that number we have to take the X trading uh I think so factoring 29:38 29 minutes, 38 seconds into it yes so so uh yes Uh so 29:46 29 minutes, 46 seconds 15% was just a guidance. Uh it could be 10, it could be 17 depending on the uh raw material rates and percentage utilization of different uh divisions. 29:57 29 minutes, 57 seconds But yes uh Q4 will be better than Q3 in terms of the manufacturing turnover. 30:04 30 minutes, 4 seconds Okay. Just to put things more into perspective, I think so uh we have been participating in uh in events uh 30:12 30 minutes, 12 seconds speaking meeting clients as being has been done by the postponing of con twice. So uh uh or in fact once so what 30:21 30 minutes, 21 seconds is the filler exactly from these participation and your and your clients uh uh uh uh visits and and even the 30:29 30 minutes, 29 seconds Japan uh part of the story which you have been speaking for the last two quarters uh any any breakthrough uh in in that aspect if you could just give 30:38 30 minutes, 38 seconds some color and s as you were speaking about the nonavailability of the workers even our employee cost uh on a 30:46 30 minutes, 46 seconds consolidated basis is has gone up by 2 and a half cr for this quarter at 20 K. 30:53 30 minutes, 53 seconds So what explains this uh is it the labor code impact that you have done because no no no mentioned there in the notes. 31:02 31 minutes, 2 seconds Yeah. So first of all uh you're right that because there was uh this exhibition plast India during that 31:08 31 minutes, 8 seconds period uh 5th to 10th u of February we could not have a investor call and uh 2 days back uh the investor call had to be 31:17 31 minutes, 17 seconds postponed uh due to uh couple of serious uh customers coming over to Kpur. Um 31:27 31 minutes, 27 seconds so apologies about that. uh but yes there has been very strong uh response during last India and we will continue 31:34 31 minutes, 34 seconds to have these customer interactions now in tech in Germany uh in April and then Interact in May and we will be 31:42 31 minutes, 42 seconds exhibiting in Tokyo in October. uh the Japan business currently has taken a 31:49 31 minutes, 49 seconds backseat due to the extreme demand of Europe and Japan will continue to happen at its slow pace as I've been 31:57 31 minutes, 57 seconds continuously uh saying when it will take off and how it will take off time will decide once an opportunity gets created 32:04 32 minutes, 4 seconds and some space gets created from the uh Chinese and the Vietnamese uh supply sources 32:12 32 minutes, 12 seconds about the employee cost uh I think we will have to clarify it in a better sense in the next uh investor meet or uh 32:20 32 minutes, 20 seconds the presentation. But mostly uh this employee cost has gone up due to two reasons. One is the annual inflation that goes up and secondly there has been 32:29 32 minutes, 29 seconds a higher percentage of FIBC production compared to fabric. 32:35 32 minutes, 35 seconds Also there have been some provisions there have been some provisions that have been taken due to the new wage code. 32:43 32 minutes, 43 seconds Right. If if time if the moderator allow can I put forward few more or shall I join the queue madam? 32:50 32 minutes, 50 seconds Sorry to uh sorry for that. Uh you may rejoin the queue please for more questions. 32:54 32 minutes, 54 seconds I'm joining rejoining the queue sir for my follow-ups. 33:00 33 minutes Thank you. The next question is from the line of Guru Mimmani from Nvesa Investments. Please go ahead. 33:07 33 minutes, 7 seconds Hello can hear you. 33:12 33 minutes, 12 seconds Yeah. Uh so so my question was regarding the trading uh is trading included in the exports you mentioned that we are doing currently. 33:23 33 minutes, 23 seconds Sorry could you repeat your question? 33:25 33 minutes, 25 seconds Is is trading uh included in the exports or is it done domestically? 33:31 33 minutes, 31 seconds Uh trading is only domestic it is not uh in exports. 33:35 33 minutes, 35 seconds Okay. And so my follow-up question to that is why was there a loss in the trading division this quarter? 33:44 33 minutes, 44 seconds there is no loss in the trading division in this quarter. 33:49 33 minutes, 49 seconds Okay. So because okay uh so and then the following 33:56 33 minutes, 56 seconds question uh okay so that's all I have for now. Thank you. 34:13 34 minutes, 13 seconds So just to clarify the trading division uh yeah there is a quarterly profit in the trading division. Yeah. 34:25 34 minutes, 25 seconds Hello. Yeah. 34:27 34 minutes, 27 seconds Yes sir. Uh the result uploaded I can see just say we have uh done a revenue of 47 crores from the trading division. 34:35 34 minutes, 35 seconds Correct. Correct. 34:37 34 minutes, 37 seconds And when we see the segment result, we can see it is a negative 3.53 from trading 84.39 positive. 34:55 34 minutes, 55 seconds I'm talking consolidated revenue. It's on page number. 35:01 35 minutes, 1 second Yeah, consolidated revenue. I can see it is a negative 3.53. 35:08 35 minutes, 8 seconds Just one second. Um, yeah, correct. 35:20 35 minutes, 20 seconds Yeah. So, that's what I wanted to know. 35:22 35 minutes, 22 seconds How can there be a loss from trading division? 35:26 35 minutes, 26 seconds Let me come back on this please. I do not have ready answer on this. 35:31 35 minutes, 31 seconds Okay. Uh and so what's the reason for the increase in the revenue trading division from 12 kores to 47 kores? 35:41 35 minutes, 41 seconds So there so it's opportunity driven uh completely opportunity driven. So there was an opportunity in the market to purchase and sell because there was an 35:49 35 minutes, 49 seconds arbitrage. Uh because of our uh relationship with the suppliers and our 35:56 35 minutes, 56 seconds uh market information we could purchase a higher quantity and there was an arbitrage in the market to sell uh the product. 36:06 36 minutes, 6 seconds Okay. Uh thank you Dan. Our last question would be what's the current aida from exports and domestic. 36:16 36 minutes, 16 seconds So the blended obviously we know uh the exports beta is around uh 11 and a half to 12% and domestic is at about 6 and a half%. 36:24 36 minutes, 24 seconds Okay. Thank you. 36:29 36 minutes, 29 seconds Thank you. The next question is from the line of Patel from Patel Investments. Please go ahead. 36:39 36 minutes, 39 seconds Mr. Patel, your line is unmuted. Please proceed. Hello. Am I audible? Yes, you're audible. 36:47 36 minutes, 47 seconds Yeah. Yeah. Thank you. Thank you so much for the opportunity, sir. Uh I just had a couple of questions. Uh the first one I I think it was a little bit covered by 36:56 36 minutes, 56 seconds uh some other analysts but I just wanted more clarity that if you see that um our contribution from Europe this quarter was about uh 60%. 37:06 37 minutes, 6 seconds And uh now that the US uh the US free trade deal and everything has come in uh even the ESPR also has come in. So how does this uh affect us as a company? 37:19 37 minutes, 19 seconds So it affects us very positively. uh Europe remains our stronghold and the EU FDA will kick in the next calendar year. 37:28 37 minutes, 28 seconds So it will so Europe will remain at the focus but whatever new capacities are coming into FIDC they will be uh service 37:36 37 minutes, 36 seconds to USA. So uh it's an extremely positive sign for the company. 37:44 37 minutes, 44 seconds Got it. And are we uh hedging uh the revenues that we get from these uh entities abroad? 37:53 37 minutes, 53 seconds Yeah, I'll uh let uh my father answer that. Yes, sure. 37:57 37 minutes, 57 seconds So, we follow a uh specific uh agent policy for our foreign exchange exposures 38:06 38 minutes, 6 seconds and uh we have access to two consultants who keep advising this. It is reviewed on a weekly basis every Saturday on our 38:14 38 minutes, 14 seconds net exposures in uh dollar, euro and pound and then we take action on that. But yes, we do hedge periodically. 38:24 38 minutes, 24 seconds Got it. That that is very comfortable for us to hear and yeah it is it is monitored on every Saturday. 38:31 38 minutes, 31 seconds Got it. That that that does sound very good to us. Uh and final bit a little bit on the cape. I believe we have about 38:40 38 minutes, 40 seconds 6,000 metric tons of capacity for FIBC expansion that we are planning over the next four five years. So I just uh 38:48 38 minutes, 48 seconds wanted to know what is the total capex uh outlay that we have for the same and by what time will we reach the total uh 38:57 38 minutes, 57 seconds capacity like like the maximum capacity utilization for the same. So the capex only for the FIBC portion is only 20 39:05 39 minutes, 5 seconds crores. U so this will take four to five years to come up with a target of about 1200 tons addition every year that will be done. 39:16 39 minutes, 16 seconds Uh why it is so slow is also because it needs market development exercise because as you know that 90% of the 39:23 39 minutes, 23 seconds business is repeat business. So to uh break the barrier of market penetration 39:30 39 minutes, 30 seconds at the right value it takes time and we want to go very step by step in a uh stable manner. 39:37 39 minutes, 37 seconds So uh this will take 4 to 5 years. 39:41 39 minutes, 41 seconds Got 20 crores is overall or every year 20 crores? 39:45 39 minutes, 45 seconds No no no overall 20 crores. Out of this 20 crores about 12 crores is in the building itself. 39:51 39 minutes, 51 seconds Oh okay. that that is that is pretty cheap for FIBC because uh we already have the extrusion and the weaving capacity. This is 39:59 39 minutes, 59 seconds debotting of certain sections. Uh not everything is coming up. It's more of de 40:07 40 minutes, 7 seconds got it. That makes more sense. And uh so what what will be the capacity uh enhanced after that? 40:17 40 minutes, 17 seconds So we will move from so the current uh capacity is at about 18,000 tons. So this will become 24,000 tons by the end of the expansion. 40:27 40 minutes, 27 seconds Okay. Got it. Got it. And just one final question if I can squeeze it in. I just wanted to know that the new Gajger road 40:34 40 minutes, 34 seconds warehouse uh uh that for the logistic cost and capital working capital how will it impact us? 40:43 40 minutes, 43 seconds So from a working capital perspective, it will really not make a change but more from a change of uh operating expenses because this is an automated 40:52 40 minutes, 52 seconds warehouse. Uh the retrieval time, the quality of storage, uh the um 40:58 40 minutes, 58 seconds the safety standards that are set um and from a wastage perspective. 41:05 41 minutes, 5 seconds Got it. Got it. Got so logistically it will become much uh better and less efficient. Yes. Absolutely. 41:12 41 minutes, 12 seconds Mhm. Makes me makes uh so that is that was all from my side. I'll join the queue again for any follow-up questions and I just want to wish you all the best for the future. Thank you so much. 41:22 41 minutes, 22 seconds Thank you. 41:25 41 minutes, 25 seconds Thank you. The next question is from the line of Virat Sha from JJ Investments. Please go ahead. 41:35 41 minutes, 35 seconds Hello Mr. Sha. Yes, you are audible. 41:37 41 minutes, 37 seconds Hi. Yeah. Hi. So, first of all, good morning. Uh sir, congratulations on the strong Q3 performance and the successful 41:46 41 minutes, 46 seconds incorporation of the JV in January. Uh I had a few questions. Uh firstly uh I joined a little late. Um I don't know if 41:54 41 minutes, 54 seconds I have questions have been answered previously. Uh so my question would be could you uh break down the total pay 42:01 42 minutes, 1 second that we have uh spec uh inputed for the specifically for the JV? I am looking for a split between equity contribution and debt. 42:12 42 minutes, 12 seconds This question is pertaining to the JV, right? 42:14 42 minutes, 14 seconds Yeah. Correct. So there is 20 lakh rupees that has been invested into the JV. Okay. There's no debt. There is no debt. 42:23 42 minutes, 23 seconds Okay sir. No debt. So uh next question would be how would you describe the competitive landscape in this market? 42:29 42 minutes, 29 seconds Are we entering in a crowded space? Uh do you see a gap or any uh high quality manufacturers like yourselves? in this. 42:37 42 minutes, 37 seconds So it is uh it is not a crowded space at all. Rather it's a very novel and niche space. Currently uh it will substitute imports that are coming on from Europe. 42:48 42 minutes, 48 seconds And secondly because of the availability of this yarn the this market will expand. Currently this yarn is being imported with a longer lead time and a 42:56 42 minutes, 56 seconds at a much higher price. uh once we are there in the market uh because the price will also be attractive and the material 43:06 43 minutes, 6 seconds will be available locally it will uh enhance the market size itself currently it's a niche product yeah got it got it 43:15 43 minutes, 15 seconds uh one last question sir uh how are we specifically different materials how are they specifically differentiable from 43:24 43 minutes, 24 seconds other established suppliers what are what is our USP serving industry again about SAM, right? 43:32 43 minutes, 32 seconds Correct. Yeah. Yeah. Yeah. Correct. 43:34 43 minutes, 34 seconds Yeah. So, so first it's made out of polyropylene. So, it's about 30% lower weight compared to polyester. Second, uh 43:43 43 minutes, 43 seconds it is non-toxic to the environment and to the human body because it is inert. 43:48 43 minutes, 48 seconds It is polyropylene. Third, it is 100% recyclable. 43:52 43 minutes, 52 seconds But polyester with PVC quoting is not recyclable. Fourth, it is meant for outdoor furniture means that it can last 44:01 44 minutes, 1 second much longer. So a combination of all these things today is not present in the market. 44:07 44 minutes, 7 seconds Okay, got it. Uh sir, is there any cost efficiency in this? Uh are we advantages related to cost? 44:15 44 minutes, 15 seconds It's a uh it's a value creation product. 44:19 44 minutes, 19 seconds It is not a cost optimizing product. So it is a more of a luxurious uh value creation. 44:29 44 minutes, 29 seconds Noted sir. Got it. Got it. Thank you so much. Uh this answers all my questions. Thank you so much. Yeah. 44:36 44 minutes, 36 seconds Congratulations. All the best. 44:40 44 minutes, 40 seconds Thank you. The next question is from the line of Prain Sharma, an individual investor. Please go ahead. 44:48 44 minutes, 48 seconds Hello. Am I audible? Yes, you are. Yeah. Uh I uh good afternoon Shashank. 44:55 44 minutes, 55 seconds Uh congratulations on excellent uh results in P3 and uh my first question is at slightly higher level. Uh you know 45:04 45 minutes, 4 seconds what I see is basically India is a leader in FIBC and FIBC bad. Now what is 45:11 45 minutes, 11 seconds the mode India has against countries like Bangladesh. Uh my question is that you know labor there is very cheap and we have seen that uh in the recent uh 45:20 45 minutes, 20 seconds deal between Bangladesh and US they said that they will have a zero duty to import raw materials. So what prevents them from actually entering this 45:29 45 minutes, 29 seconds particular space and putting up capacities buying raw materials PT granules from US and putting up facility 45:36 45 minutes, 36 seconds there. Uh this is my first question and the second question is uh what you know in recent month two years uh generally 45:44 45 minutes, 44 seconds fibc uh segment in India market in India companies in India are doing very well. 45:50 45 minutes, 50 seconds So why what is the tailwind uh in this particular sector of course the companies like Ku plastic are doing extremely well within the segment but in 45:59 45 minutes, 59 seconds general there is a tailwind which is seen. So what is the re reason for this one two years you know last one and a 46:06 46 minutes, 6 seconds half years or two years and suddenly there is a decent amount of profitable growth in this particular these two 46:16 46 minutes, 16 seconds uh Praji thank you for asking Budi questions. Um first um Bangladesh. So 46:23 46 minutes, 23 seconds Bangladesh so this product is not only about being manpower intensive, it is also being very supervision and 46:32 46 minutes, 32 seconds management intensive in addition to supply chain management. Bangladesh in inherently has a disadvantage because it 46:40 46 minutes, 40 seconds does not have the raw material and also the shipping ports are not the most efficient in terms of the routings that 46:47 46 minutes, 47 seconds are available. It's a very time sensitive product and um 46:55 46 minutes, 55 seconds so that's one. Secondly, most of the end users are Fortune 500, Fortune 1500 47:02 47 minutes, 2 seconds companies. uh unfortunately the uh labor practices sometimes uh becomes the critical point where India is able to score much higher uh as a country. 47:14 47 minutes, 14 seconds Thirdly, it is also extremely real estate intensive. 47:19 47 minutes, 19 seconds So uh across all our units put together we are uh about 10 to 11 lakh square ft. 47:25 47 minutes, 25 seconds Now uh Bangladesh somehow does not have real estate available with them. Um that is also a very big disadvantage. 47:33 47 minutes, 33 seconds the availability uh of engineers, management graduates uh to 47:40 47 minutes, 40 seconds supervise these operations is also extremely uh poor in Bangladesh. 47:46 47 minutes, 46 seconds Uh and the final thing is that the entrepreneurship that is there in 47:54 47 minutes, 54 seconds Bangladesh is driven more by textiles uh rather than industrial packaging. So um 48:02 48 minutes, 2 seconds textiles is a far more uh it's it's a customized product but it's a standard product. So there is no mass customization in textiles 48:10 48 minutes, 10 seconds u and that is how they tuned. We are more tuned to mass customization. So an average order length only runs on our 48:19 48 minutes, 19 seconds line for maybe 6 to 9 hours as against a textile product that could run for maybe 20 days. So that is why it becomes 48:26 48 minutes, 26 seconds extremely management intensive. So this is the reason why India has been able to consistently do better than Bangladesh 48:33 48 minutes, 33 seconds and Vietnam both. Uh regarding the question of the duty structure of India versus Bangladesh u 48:41 48 minutes, 41 seconds Bangladesh had a 0% duty in EU which India will have from next year. So this will become a very big mode uh from next 48:50 48 minutes, 50 seconds year onwards because today Bangladesh has about 12% of the EU imports. Uh although US imports they are only booked at 6%. 48:57 48 minutes, 57 seconds So uh there the commodity and the lowest segment of the product might move to Bangladesh in USA where inventory is not 49:07 49 minutes, 7 seconds a challenge, lead time is not a challenge, the quality consciousness is not a challenge, the uh social audit rules are not so stringent but the 49:16 49 minutes, 16 seconds higher segment the medium segment will still remain in India and Turkey. 49:22 49 minutes, 22 seconds uh regarding the second question of the tailwinds in the FIBC industry. So uh the business is getting more and more complex as the time is proceeding 49:30 49 minutes, 30 seconds because um rather than complexity improving to simplification it is going on becoming more uh stringent and more 49:39 49 minutes, 39 seconds complex. A due to the unavailability of people uh trained people to work B due 49:46 49 minutes, 46 seconds to the migration of the customers who used to buy from Mexico and Turkey to India. So more complex bags are coming in to the country. 49:56 49 minutes, 56 seconds Uh and the total global packaging space itself is uh growing at a rapid pace. So 50:04 50 minutes, 4 seconds overall that is the reason why tailwinds are there with the country and the rupee has been depreciating as well. 50:11 50 minutes, 11 seconds Yeah. Okay. Okay. Thank you. That answers me. 50:20 50 minutes, 20 seconds Thank you ladies and gentlemen. In order to ensure that the management will be able will be able to address questions from all the participants in the 50:28 50 minutes, 28 seconds conference. Kindly limit your questions to two per participant. If you have a follow-up question, please reach out the queue. The next question is from the 50:36 50 minutes, 36 seconds line of Parva from HDFC Bank. Please go ahead. 50:40 50 minutes, 40 seconds U hi sir. Uh so just wanted to understand that uh like our FIBC is right now 90% export and 10% domestic. 50:50 50 minutes, 50 seconds What are the mar how is the margin between both uh export and domestic? It is similar. 50:58 50 minutes, 58 seconds It is similar only. 51:00 51 minutes Got it. So uh what are the domestic challenges? 51:04 51 minutes, 4 seconds What is the reason we are not very much focusing on domestic and focused on export only when so much geopolitical 51:12 51 minutes, 12 seconds changes are happening globally why not focus on domestic so just wanted to understand the domestic uh part of it 51:19 51 minutes, 19 seconds the uh so the answer in two sections uh first is that the industry produces in 51:26 51 minutes, 26 seconds India about 45,000 tons per month of FIBC's and the domestic market is at about 6 to 7,000 tons which is about 51:35 51 minutes, 35 seconds 15%. So we are not way off from the industry average of percentage of export to domestic. Uh that is first section. 51:45 51 minutes, 45 seconds Uh the second part is that the domestic industry has three segments. One is the highest segment of uh food, pharma and 51:53 51 minutes, 53 seconds carbon black. There is a second segment which is of uh agri and chemical exports. And then 52:01 52 minutes, 1 second there is a third segment of mining, petrochemicals and uh commodity. 52:07 52 minutes, 7 seconds Uh we are present in the second segment and the first segment. We are not present in the third segment. Uh the third segment itself is the majority of 52:15 52 minutes, 15 seconds the industry itself. That is at a much lower margin. Understood. 52:24 52 minutes, 24 seconds Got it. 52:25 52 minutes, 25 seconds Got it. And uh so when we say first and the second segment that would comprise of how much uh 20 25% of the entire 52:33 52 minutes, 33 seconds industry uh yes about 20% of the uh entire Indian FIBC industry yes 52:40 52 minutes, 40 seconds FIBC industry third you said is mining prochemical correct and commodities like cement uh 52:48 52 minutes, 48 seconds building materials got it the those would be standardized bags basically they are not only standardized But there 52:56 52 minutes, 56 seconds are also extremely uh low requirement of uh certifications and audits. 53:04 53 minutes, 4 seconds Okay. Uh understood. I think that's it from my side. Thank you. 53:14 53 minutes, 14 seconds Thank you. The next question is from the line of Sakit Kapoor from Kapoor and Company. Please go ahead. 53:21 53 minutes, 21 seconds Yes sir. I just put forward the questions. Uh firstly sir you did alluded to the fact of raw jude crisis 53:28 53 minutes, 28 seconds and that that may is emerging as an opportunity for us. So in terms of volumes uh uptick that we may expect 53:36 53 minutes, 36 seconds from uh uh this going ahead if you could just give some color and then previously in the last call you did mentioned about 53:45 53 minutes, 45 seconds the benefits from the well x uh acquisition would be there for uh in quarter three. So how much have Welllex 53:54 53 minutes, 54 seconds uh contributed uh in terms of the bottom line and thirdly about the Italian JV sir which you were just uh alluding 54:01 54 minutes, 1 second answering to other participant. So when will we start uh uh booking revenues uh 54:07 54 minutes, 7 seconds from this uh this JV sir these are my uh uh set of question 54:14 54 minutes, 14 seconds will start booking revenue from next financial year. 54:18 54 minutes, 18 seconds uh Valex I think it has been misunderstood because uh we never said that there will be a significant uh increase in either the revenue or the 54:27 54 minutes, 27 seconds profitability at Vex Ventures in quarter 3. Uh it's a more of a uh directional 54:34 54 minutes, 34 seconds thing. Uh it will take uh couple of years to see any significant results because uh the end user marketing and B2C relationship takes time to break in. 54:44 54 minutes, 44 seconds So uh the team is there experimentation is happening of what is the right business model to uh scale up there. And 54:54 54 minutes, 54 seconds uh regarding the first question so in terms of volume uh I would say that in this quarter about 20 to 30% of our 55:02 55 minutes, 2 seconds volume would go to the government um product. Okay. That is the FIBC uh section. 55:10 55 minutes, 10 seconds No it's it's not FIBC. It's PP wack. 55:14 55 minutes, 14 seconds Okay. So then there that will be a margin dilution sir for for this. 55:17 55 minutes, 17 seconds It will not be margin dilution. It will not be a margin dilution. It will be uh uh it will be in a similar margin range 55:25 55 minutes, 25 seconds because it's opportunity driven. It's a uh it's it's a one time opportunity driven thing. 55:31 55 minutes, 31 seconds Okay. And then for the uh then for the tonnage from the FIBC segment that will take a back seat since I think so there is only the 55:39 55 minutes, 39 seconds so fabric fabric will take a backseat FIBC will remain as is. 55:44 55 minutes, 44 seconds Okay sir in in nutshell as you mentioned early earlier in the call that uh we we we may be expecting better performance 55:52 55 minutes, 52 seconds both operationally and financially for quarter 4 versus quarter 3 and these are the factors which you just uh alluded 56:00 56 minutes to. Uh so that understanding is uh is correct sir. Broadly yes. 56:06 56 minutes, 6 seconds Okay. If I'm missing anything else then please add to it. No you've got everything. 56:15 56 minutes, 15 seconds Okay. Right sir. Thank you sir and all the best to the team and uh pranam to Manoji also not not spoken this time. 56:23 56 minutes, 23 seconds Yes. Thank you S G. I was listening so well. Yes. Yes. Thank thank you sir. 56:35 56 minutes, 35 seconds Thank you ladies and gentlemen. That was the last question for today. I now hand over the conference to Mr. Shashank 56:42 56 minutes, 42 seconds Agarwal, deputy managing director for closing comments. Over to you. 56:47 56 minutes, 47 seconds I would like to thank everyone who has joined the call and took out this time. 56:51 56 minutes, 51 seconds U we will come up with a couple of clarifications that have been asked and remain unanswered. Uh thank you for joining in today. 57:00 57 minutes Thank you very much sir. On behalf of Kpur Plastic Plast Limited that concludes this conference. Thank you all for joining us today and you may now disconnect your line.