Nitin Spinners Limited — Q4 FY26

Nitin Spinners Limited Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=19CV8T3IuDw Published: 2 days ago

0:01 1 second Ladies and gentlemen, good day and welcome to the NITN Spinners Limited Q4 FY26 earning conference call hosted by 0:09 9 seconds Smith Limited. As a reminder, all participant lines will be in a listen only mode and there will be an 0:17 17 seconds opportunity for you to ask question after the presentation concludes. Should you need assistance during the conference call, please signal an 0:25 25 seconds operator by pressing star then zero on your touchstone phone. Please note that this conference has been recorded. I now 0:33 33 seconds hand the conference over to Mr. Vinas Chandra from Limited. Thank you and you sir 1:00 1 minute Ain sir, could you please go ahead? 1:05 1 minute, 5 seconds Yeah, thanks a lot Julius and thank you very much everyone for joining this call. On behalf of Smith Limited, I welcome you all to fourth quarter and 1:14 1 minute, 14 seconds full financial year FY 26 earning conference call of Nithan Spinus Limited. We are pleased to host the top 1:21 1 minute, 21 seconds management of the company. Today we have with us Mr. Dinas Nulka chairman and managing director of the company Mr. 1:28 1 minute, 28 seconds Nitin Nulka managing director of the company and Mr. P Maswari chief financial officer. We will start the call with initial commentary on the 1:36 1 minute, 36 seconds results and then we will open the floor for questions and answers. Now I will hand over the call to Mr. P. Mahaswari 1:44 1 minute, 44 seconds CFO of the company. Over to you Mahaswari sir. Thank you. 1:50 1 minute, 50 seconds Good afternoon and a warm welcome to all the participants to this Q4 and FI26 earning call of Nathan Spinner Limited. 1:59 1 minute, 59 seconds I hope you have had a chance to go through the financial results and investor presentation available on 2:07 2 minutes, 7 seconds company's website as well as on stock exchange websites. I will start with a brief overview on the operational and financial performance for the quarter. 2:17 2 minutes, 17 seconds Post that our CMD Mr. Monica will give you an overview of industry and business scenario. Coming to our financial and 2:26 2 minutes, 26 seconds operational performance for Q4 revenue for Q4 FI26 stood at 859.8 crores that 2:35 2 minutes, 35 seconds is higher by 7.4% on quarteronquarter basis and 2.2% on 2:42 2 minutes, 42 seconds yearon year basis. This is our highest ever quarterly revenue driven by improvement in demand and yan prices. 2:51 2 minutes, 51 seconds Abita for stood at rupees 130.4 crores that is a growth of 16.9% on 2:59 2 minutes, 59 seconds quarteronquarter basis and 8.4% on yearon-year basis. AITA margin for that 3:06 3 minutes, 6 seconds quarter stood at 15.17% against previous quarter margin of 13.93% and Q4 25 margins of 14.30%. 3:17 3 minutes, 17 seconds That is an expansion of 124 basis points on Q1Q basis due to improved realization, operational efficiency and costsaving initiatives. 3:28 3 minutes, 28 seconds Profit after tax for the quarter stood at 57.4 4 crores that is higher by 29.2% 3:35 3 minutes, 35 seconds on quarteron-quarter basis and 23.7% on year-on-year basis. EPS and KPS for the 3:42 3 minutes, 42 seconds quarter stood at rupees 10.20 and rupes 16.74 per share respectively. 3:50 3 minutes, 50 seconds In terms of geographical strip split in Q4 FI26 exports contributed nearly 63% 3:58 3 minutes, 58 seconds and domestic market contributed 37% of total revenue and coming to yearly 4:04 4 minutes, 4 seconds performance revenue for FI26 is stood at rupees 3,213.9 4:16 4 minutes, 16 seconds yearon-year basis mainly due to lower yard and raw material prices uh 4:22 4 minutes, 22 seconds particularly in first half. AITA for the year stood at rupees 452.8 crores that 4:29 4 minutes, 29 seconds is regrowth of 4% on yearon-year basis and AITA margin for the year stood at 14.09% 4:37 4 minutes, 37 seconds against 14.26% last year. Profit after tax for the year stood at rupees 177.6 4:45 4 minutes, 45 seconds crores that is higher by 1.2% 2% on year-on-year basis. EPS and cash EPS for 4:52 4 minutes, 52 seconds the year stood at rupees 31.58 and rupes 57.93 per share respectively. 5:00 5 minutes In terms of geographical split, exports contributed 61.9% and domestic 31.8% of total revenue. In 5:09 5 minutes, 9 seconds terms of revenue mix in FI26 contribution to total revenue from yarn 5:18 5 minutes, 18 seconds fabric and others stood at 74% 21% and 51% respectively on the operational 5:26 5 minutes, 26 seconds front in Q4 FI26 spinning capacity was operating at over 98% utilization and 5:33 5 minutes, 33 seconds woven fabric capacity was operating at over 90% utilization. 5:38 5 minutes, 38 seconds The board of directors have recommended a dividend of 30% on equity share capital that is three per equity share 5:46 5 minutes, 46 seconds of rupees 10 for the financial year ended 31st March 2023. 5:52 5 minutes, 52 seconds Our balance sheet continues to remain strong in FI26 and our net depth to equity has come down to 0.76 times as of 6:02 6 minutes, 2 seconds 31st March 26 as compared to 0.89 times in 31st March 2025. That is all from my 6:09 6 minutes, 9 seconds side. I request Sin G to share his insights about industry and business. Thank you and over to Sin. 6:19 6 minutes, 19 seconds Uh thank thank you Mishuri G. Uh good afternoon and warm welcome to all the participants. 6:26 6 minutes, 26 seconds Uh FI26 was a very challenging year for the textile industry. However, it ended on a 6:34 6 minutes, 34 seconds positive note for the upstream textile players. 6:37 6 minutes, 37 seconds In view of uptick in demand and improvement in yarn prices with US uncertainties which had affected 6:45 6 minutes, 45 seconds the textile value chain particularly in first half of the year resulting in demand destruction and underutilization of capacities. The second half was again 6:54 6 minutes, 54 seconds full of uncertaintities due to ongoing west Asia conflict which has disrupted supply chains increased the freight costs as well as transit time and 7:03 7 minutes, 3 seconds increase in the raw material and other input prices. The industry observed improvement in demand in Q4 FI26 due to 7:09 7 minutes, 9 seconds removal of tariffs by USA restocking across downstream channels and increase in transit times. This has resulted in 7:17 7 minutes, 17 seconds improved utilization and increase in realization as well as margins. 7:22 7 minutes, 22 seconds As far as cotton was concerned the last year till the December 25, the international prices were lower at about 7:29 7 minutes, 29 seconds 63 to 64 cents and similarly domestic prices were also lower ranging from 52,000 to 55,000 rupees per candy. This 7:38 7 minutes, 38 seconds was the lowest levels in last 3 four years. Moreover, domestic prices were in par with the international cotton prices. Government of India also helped 7:47 7 minutes, 47 seconds by removing duty on imported cotton between August to December 25. Since last few weeks, international and domestic prices are showing upward 7:55 7 minutes, 55 seconds trend. However, parity between two still remains. The industry is requesting government of India to again remove the cotton import duty to ensure 8:03 8 minutes, 3 seconds availability of good quality cotton at reasonable prices. 8:08 8 minutes, 8 seconds While the ongoing tension in the Middle East remain key monitorable, the long-term demand of Indian textile industry remains intact, driven by India's longstanding advantage in cotton 8:18 8 minutes, 18 seconds products and in addition to market depth to the sector in view of the implementation of various free trade agreements. 8:27 8 minutes, 27 seconds The Indian UK FDA is expected to certify soon and benefit Indian textile industry with elimination of long-standing duty disadvantage as compared to the 8:36 8 minutes, 36 seconds competing nations. The India EU FDA which is another big boost to the Indian textile industry will take another couple of quarters for implementations 8:44 8 minutes, 44 seconds after gaining duty-free access in these markets. Indian exporters expect strong order for enclosed and improved competitiveness. 8:52 8 minutes, 52 seconds Already various customers from Europe have started inquiring and planning to diversify their sourcing from India 8:59 8 minutes, 59 seconds looking into these SDAs and other benefits which they're going to get. 9:04 9 minutes, 4 seconds Coming on to the company's performance within spinners has delivered its highest ever quarterly revenue of 859.8 9:11 9 minutes, 11 seconds crores in Q4 FI26 due to optimum utilization of capacities and improvement in yarn prices. This has resulted in improved margins also during 9:20 9 minutes, 20 seconds the quarter. Our existing capacities of spinning and woven fabric are running at optimum capacity utilization. We are continuously expanding our our 9:28 9 minutes, 28 seconds geographical reach in all business segments to offset the demand utility from a particular geography. Here I'd like to highlight that over the last 9:36 9 minutes, 36 seconds decade we have grown our revenue ea and pat by nearly three to four times also increased our gross fixed assets and cash flow from operations by more than 9:45 9 minutes, 45 seconds four times. Also over the last decade we have generated more than 2,000 crores of cash flow from operations. We're hopeful of keeping up the pace in future as 9:54 9 minutes, 54 seconds well. As regards the present ongoing capex the plan is progressing very well. It is 10:01 10 minutes, 1 second expected to commercialize in second half of FY27. Post expanding our fabric capacity will add another 35 million 10:08 10 minutes, 8 seconds meters to 17 million meters annually and spinning capacity by another 22,000 tons 10:16 10 minutes, 16 seconds to about 130,000 tons. We'll be able to supply a wider range of products to our existing domestic and international customers and also serve the newer geographies. 10:26 10 minutes, 26 seconds This this capex will enable us to increase the share of value added products in our total revenue resulting in improved margin profile. The 10:34 10 minutes, 34 seconds renewable power capex is also progressing as per schedule and expected to be operational in the second half. 10:39 10 minutes, 39 seconds External environment like normalization of US tariff scenario most probably settlement of the US West Asia uh war 10:48 10 minutes, 48 seconds and signing of multiple FTAs give us confidence of faster ramping of the new capacities once they get operational. 10:57 10 minutes, 57 seconds In the uh renewable power sector, we continue to expand our renewable power footprint to reduce our per unit power cost and marginally mitigate the impact 11:05 11 minutes, 5 seconds of rising power costs. So in Q425 F2, we announced an additional investment of 9.5 crores for a hybrid power purchase 11:13 11 minutes, 13 seconds agreement of 10 megawatt which will be operational by Q3 27. 11:18 11 minutes, 18 seconds With this the total renewable uh capacity addition during including PPEs during the year will be about 75 11:25 11 minutes, 25 seconds megawatt and with the already installed capacity we would be very near to 100 megawatt of inst uh power capacity. 11:34 11 minutes, 34 seconds After these capacity additions nearly 50 to 55% of our present and future power requirements will be catered by the 11:40 11 minutes, 40 seconds renewable energy. Looking ahead, we are confident of improved over overall performance with better demand visibility, increased realizations and supported by capacity expansion. 11:52 11 minutes, 52 seconds Renewable power initiatives in addition of value added good products to the portfolio should further enhance the competitiveness. 12:00 12 minutes With this, I'd like to open the uh floor for the question and answers. Thank you. 12:08 12 minutes, 8 seconds Thank you. We'll now begin the question and answer session. Anyone who wishes to ask question may press star and one on your touchstone telephone. If you wish 12:17 12 minutes, 17 seconds to remove yourself from the question queue, you may press star and two. 12:22 12 minutes, 22 seconds Participants are requested to use handset while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. 12:33 12 minutes, 33 seconds The first question is from the line of Rahan Sayy from Titra Asset Manager. Please go ahead. 12:42 12 minutes, 42 seconds Uh hello good afternoon and also I have a couple of questions. Uh uh am I audible right? 12:50 12 minutes, 50 seconds Yes. 12:52 12 minutes, 52 seconds Your voice is not very clear. Can you please increase your voice level? Uh now it's clear. Hello. Yeah. 12:59 12 minutes, 59 seconds Uh so yeah I have a couple of questions. 13:01 13 minutes, 1 second Uh first on your uh Rajasthan investment uh like you have done KPX. So what with Rajasthan investment promotion scheme 13:10 13 minutes, 10 seconds benefits applicable on the new KPX. So can management help us understand the total incentives likely to be accured over the project life and how much this could improve our project IR. 13:23 13 minutes, 23 seconds Uh basically uh Rajasthan investment promotion scheme uh has two parts I would rather say three parts to its uh 13:32 13 minutes, 32 seconds whole scheme. Uh first is uh the capital subsidy which is ranging depend uh am I audible? 13:40 13 minutes, 40 seconds Yeah yeah yeah you are audible. 13:42 13 minutes, 42 seconds Yeah. So the capital subsidy uh part is ranging depending on the uh capac 13:50 13 minutes, 50 seconds capital uh allocation which you are doing plus the employment generation you are doing from 20% to 20 25 27%. Uh so 13:59 13 minutes, 59 seconds that is that will be that will be of the total project and eligible assets. So uh for our new capacity expansion also this 14:07 14 minutes, 7 seconds will be uh allowed allowed to us. So that is one part. Second part is the interest subsidy which is about 5% of 14:15 14 minutes, 15 seconds the eligible fixed investment which is again uh allowed for five years. So that is again we are eligible and apart from 14:22 14 minutes, 22 seconds this there are various electricity duty benefits plus uh we have certain land and other rebates which is uh mundy tax 14:31 14 minutes, 31 seconds rebates and other other rebates are also applicable which is uh also as the case with the last uh last project also as 14:41 14 minutes, 41 seconds far as IRS are concerned I think uh that is cap capital subsidy is a part which 14:47 14 minutes, 47 seconds we get over a period of 10 Yes. So that is satifying accordingly. 14:53 14 minutes, 53 seconds So and the interest cost you are already seeing in the numbers which is acured to us every year. 15:01 15 minutes, 1 second Oh okay. Okay. Fair enough. And my uh second question is around your some of the renewable energy side. So the 15:09 15 minutes, 9 seconds company has announced significant renewable energy investments through solar and hybrid power projects. 15:15 15 minutes, 15 seconds uh by FI28 mode what percentage reduction in overall power cost per unit does management expecting for this current level. 15:24 15 minutes, 24 seconds So instead of per unit capex we need to look at what is the total saving which we can generate out of this in the on a 15:32 15 minutes, 32 seconds annual basis we are expecting that total uh saving will be around uh 50 crores perom uh once this complete thing is 15:41 15 minutes, 41 seconds certified and during during this year itself we expect that we will have a saving of around 30 to 35 crores. 15:49 15 minutes, 49 seconds Uh okay. And my last question is around your AITA margin. So in the upcoming uh fabric expansion project, what kind of 15:58 15 minutes, 58 seconds uh asset tons and margins are management targeting once the new 35 mm capacity stabilized and would fabric margin 16:07 16 minutes, 7 seconds structurally remain superior to yarn margins over the cycle? Just a bit understanding here. Yeah. 16:14 16 minutes, 14 seconds First of all, u there is no uh we are not targeting any margins and specifically we do not give any numbers 16:21 16 minutes, 21 seconds for the fabric margins but for sure the fabric margins finished fabric margins are superior to the yarn margins that is 16:27 16 minutes, 27 seconds one thing and secondly assert as far as assert is concerned normally for the new cex uh the total assert turn is 1 is to1 16:36 16 minutes, 36 seconds uh if you remove the energy uh renewable energy capex which is there on a company basis our assert turn is around the 16:43 16 minutes, 43 seconds range changing between 1.2 to 1.3 level. 16:47 16 minutes, 47 seconds So uh like don't want to want to uh give any idea about epidemi 16:55 16 minutes, 55 seconds anything as such I I can say that we have been uh 17:01 17 minutes, 1 second stating this for last four five years that our with the kind of product profile which we have our normal margin 17:09 17 minutes, 9 seconds should be in the range of 16 to two year 20%. We expect that we should be able to maintain uh we should be able to fall 17:18 17 minutes, 18 seconds into this level during this current year in the financial year 25. 17:24 17 minutes, 24 seconds Okay. Okay. Thank you. And that's from and good for coming up. Thank you. 17:31 17 minutes, 31 seconds Thank you. The next question is from the line of Kishar Kumar from Unifi Capital. Please go ahead. 17:39 17 minutes, 39 seconds Uh yes sir. Thanks for the opportunity. 17:41 17 minutes, 41 seconds Uh sir I just have a follow up on the timelines for the new capacity. Uh you mentioned H2. So the commercial production for both fabrics and yarn 17:49 17 minutes, 49 seconds incremental capacity will start from October. Correct sir? 17:54 17 minutes, 54 seconds Not October exactly. H2 means the second half of this financial year. So at this moment as it looks that we may start 18:02 18 minutes, 2 seconds some of our capacity for the fabric in the from in the quarter starting from October to December and uh the spinning 18:10 18 minutes, 10 seconds capacity uh by December by January of uh January to February of next year. 18:18 18 minutes, 18 seconds Got it sir. So just a follow up on this see when I look at the capital work in progress it's it's around 100 crores. So 18:26 18 minutes, 26 seconds our uh capex planned uh was about uh 1,000 or actually,000 crores. So the remaining will be spent in the current financial year the 6 to 8 months time. 18:35 18 minutes, 35 seconds Correct? Is my understanding sir on that? 18:38 18 minutes, 38 seconds If here we have uh three parts to the capeex in this numbers which you are seeing. First is the capital wip which 18:46 18 minutes, 46 seconds is uh which you are seeing in uh the balance sheet. There are certain advances to the tune of about 140 crores which has already been given to various 18:55 18 minutes, 55 seconds machinery and other assets. So that is again uh in the capital advances segment other assets it is already showing 19:01 19 minutes, 1 second there. So that is second part. And third part is certain assets which has been um of modernization and balancing which has 19:10 19 minutes, 10 seconds been already received and have become operational. They have already been capitalized that is to the tune of about 55 to 60 crores. So in all uh if you 19:19 19 minutes, 19 seconds look at that we have already spent more than uh 300 cr rupees already on the project at the moment and balance will be spent during this grantee. 19:30 19 minutes, 30 seconds Got it sir. And on the balance uh uh uh most likely it will be funded through internal across and the remaining through to through debt. 19:39 19 minutes, 39 seconds Yes of course. 19:41 19 minutes, 41 seconds Got it sir. Sir and one more thing on the realization in front uh if I look at the sequential improvement in the realization uh yarn realization went up 19:49 19 minutes, 49 seconds by five six percentage but the fabric realization for both the uh nets as well as was flat so is it because of lag in 19:57 19 minutes, 57 seconds the pass through of the price to the customers uh is my understanding correct there 20:04 20 minutes, 4 seconds if you see quarter on quarter uh our net fabric realization has also improved by about 5%. uh they they are more or less 20:12 20 minutes, 12 seconds in line with what is the yarn realization has been there and the woven fabric realization has increased by about two two and a half%. So yes uh 20:22 20 minutes, 22 seconds fabric generally falls with the lag so it takes more time to pass on the increases as well as when the prices 20:29 20 minutes, 29 seconds goes down it is slow to uh reduce as well. So uh these are the exact numbers I would say. 20:37 20 minutes, 37 seconds Got it sir. Got it. Got it. answer one uh the second question is on the US inflation. Uh of late in the past couple 20:45 20 minutes, 45 seconds of months the apparel inflation in the US has started in uh guess most probably the tariffs has started being passed on 20:53 20 minutes, 53 seconds to the customers. U what is your view on that? Uh will it have an impact on the demand trend? uh if if the inflation 21:01 21 minutes, 1 second starts uh starts to go up further. 21:07 21 minutes, 7 seconds That is quite a macro question. Uh very difficult to predict that. But uh 21:14 21 minutes, 14 seconds what we are seeing is that the prices of the products have come down significantly. If you see the year 2122 21:21 21 minutes, 21 seconds and since then the uh retail prices as well as the wholesale prices of textiles have gone down only. So this is just a 21:29 21 minutes, 29 seconds course correction. Uh so we feel that we are in the middle of the course correction and these kind of prices which are prevailing at this point of 21:36 21 minutes, 36 seconds time is expected to be passed on without affecting the demand. Yes. If they are further significantly increased by 21:43 21 minutes, 43 seconds another 5 to 10% then it may have an impact. 21:47 21 minutes, 47 seconds Got it sir. Got it. So if whatever you are hearing from your customers is on the positive side. 21:53 21 minutes, 53 seconds Yes. because they were planning for they had they had been planning for a duty of about 20% and against that they are 22:00 22 minutes getting only a duty of 10%. So they have only already planned for that increase in the prices. So uh that is uh benefiting them at the moment. 22:10 22 minutes, 10 seconds Got it. Uh I have one more question if I may. uh uh so uh the Indian uh spinners are actually exporting a lot to China uh 22:19 22 minutes, 19 seconds Bangladesh and other South Asian countries the Yans um if FDA rat gets ratified and that demand moves from 22:26 22 minutes, 26 seconds those countries to here the Indian spinners demand which is actually going from India to the other countries will be uh sold domestically. uh in that case 22:36 22 minutes, 36 seconds uh do you see net positive impact for companies like NITN after the FDA gets ratified? 22:42 22 minutes, 42 seconds Of course, near shuring definitely helps uh it reduces the logistic costs, transit times and overall uh demand 22:51 22 minutes, 51 seconds scenario from the domestic market if it improves it has a positive impact on companies like us. So further our 22:58 22 minutes, 58 seconds fabrics which is being directly supplied to various garmentals that proportion also increases domestically. So again 23:05 23 minutes, 5 seconds that is of a help to um in our competitiveness I must say. 23:12 23 minutes, 12 seconds Understood sir. Thank you. Thank you so much. Thanks a lot. 23:19 23 minutes, 19 seconds Thank you. The next question is from the line of Jin Dana on Investment. Please go ahead. 23:29 23 minutes, 29 seconds Good evening and thank you for the opportunity. Am I audible? 23:33 23 minutes, 33 seconds There is some background noise if you can speak to that. 23:37 23 minutes, 37 seconds Uh sir, now it's now am I audible? It's clear. Yeah. Yeah. 23:41 23 minutes, 41 seconds Uh so sir first of all congratulation on the good start numbers. So just wanted to understand that over the last couple 23:48 23 minutes, 48 seconds of quarters we have seen the yarn prices have been moving up and that has been translated into our numbers. But when 23:55 23 minutes, 55 seconds you look at the fabric definitely you indicate that it comes with a lag effect. So is it fair to assume that in the coming two quarters or the FI27 24:05 24 minutes, 5 seconds along with the improvement in the yarn spreads we'll get a benefit of the uh uptick in the fabric sizes also? 24:14 24 minutes, 14 seconds Yes of course they've already started to improve. 24:18 24 minutes, 18 seconds Okay. And to what extent so the fabric prices will improve? 24:23 24 minutes, 23 seconds Fabric prices they are uh mean as they move with the lag uh the prices which were uh in the March of uh March numbers 24:33 24 minutes, 33 seconds are getting translated March increases are getting translated into the fabric prices now and going forward we expect that these prices will be improving further as well. 24:45 24 minutes, 45 seconds Okay. And in terms of the yarn spreads, what was the spreads last quarter and what are the spread as of today compared to the last quarter yarn spreads? 24:55 24 minutes, 55 seconds The last quarter spreads were about 110 rupees a kg. Mhm. 25:01 25 minutes, 1 second And now it is about 125 around 125 rupees 120 to 125 depending on different counts and other things. 25:10 25 minutes, 10 seconds So sir taking our Q number as a base and with assuming that current scenario fit 25:16 25 minutes, 16 seconds with the 120 or 115 as a spreads and the increment the fabric prices and 30 35 25:24 25 minutes, 24 seconds crores of the incremental benefit one will get from the power which is almost 1% of the current margin. Is it safe to assume that this margin for this year could be around somewhere around 17 18%. 25:35 25 minutes, 35 seconds Is it safe to work on that number for the company? I have already indicated I have already indicated in to the answer in my last question last uh 25:44 25 minutes, 44 seconds the respondent who asked me question that the normalized range is about 16 to 20% and we expect that in this year we'll fall in that range. 25:54 25 minutes, 54 seconds Okay. Sure sir that's all from my side. Thank you and all the best. 25:59 25 minutes, 59 seconds Thank you. The next line is from Pa Junjin Wallala from Capital. Please go ahead. 26:06 26 minutes, 6 seconds Thank you for the opportunity s congratulations on recent set of numbers. We just wanted to understand uh 26:12 26 minutes, 12 seconds what would be uh our u uh normalized spread to earn uh normalized margin for 26:20 26 minutes, 20 seconds the yarn business not as a but for the yarn business like we earn 14% margin. So what should 26:29 26 minutes, 29 seconds be the spread given the cost of cotton has also increased. Um currently basically 26:38 26 minutes, 38 seconds uh yarn margins are at the moment if you see it depends on the base price. This 26:45 26 minutes, 45 seconds uh these per kg numbers which we are giving is a differential between the yarn prices and the cotton costs. And this may vary depending on the yarn 26:54 26 minutes, 54 seconds prices. If it is uh the percentages changes as you know if the base increases the percentages may look lesser but the numbers overall in 27:01 27 minutes, 1 second absolute numbers they improve but with these kind of margins these are uh the if I just speak about what was last year 27:10 27 minutes, 10 seconds it was about uh in the range of about 12%. Uh these margins were in the range of about if you see 110 rupees was 27:17 27 minutes, 17 seconds reflecting at about uh 11.5 to 12% kind of margins. 27:23 27 minutes, 23 seconds Okay. So which means for uh if we have to go back to 15 15% margin the sledge should improve further to get back to 27:30 27 minutes, 30 seconds normalized margin. I'm not including inventory gains over here. That is perfect. 27:36 27 minutes, 36 seconds So already I'm saying that it is about 10 to 15 rupees already has increased from the last year last margins last quarter margins. So further that will that will add to the margins. 27:48 27 minutes, 48 seconds Okay understood. I was just speaking from uh normalized margins. Will this be enough 27:55 27 minutes, 55 seconds for us to have normalized margins excluding inventory gains? 28:00 28 minutes Yeah, I'm also talking about um normalized margins without inventory gains. Uh that is uh I'm also talking about the same. 28:10 28 minutes, 10 seconds Understood. So and so on commissioning of this project what would be our peak debt um that we would be having? 28:20 28 minutes, 20 seconds Our peak debt uh means our peak debt depends upon our uh working capital but our normal total debt we are expecting 28:28 28 minutes, 28 seconds to be less than in the range of about 1,900 to 2,000 crores uh after this including the working capital exposures. 28:38 28 minutes, 38 seconds Okay, understood sir. Thank you sir and all the best. Thank you. 28:47 28 minutes, 47 seconds The next line, the next question is from the line of Riches Gandhi from Disco Capital. Please go ahead. 28:57 28 minutes, 57 seconds Uh, hi sir. So you know just wanted to understand your own perception on whether these spreads of 125 hours uh 29:07 29 minutes, 7 seconds you know this is sustainable and how much they've historically been over the 29:14 29 minutes, 14 seconds uh let's say in the last 5 years and how you see this over the next few years. 29:23 29 minutes, 23 seconds So first of all uh if you see our mar if you see the yan margins uh the 29:30 29 minutes, 30 seconds differential has ranged from rupees on the minimum site it has been about 90 rupees and it has gone up to 140 to 150 29:40 29 minutes, 40 seconds rupees. If you see the postcoid it has gone up to 140 rupees also and but we must also consider the fact that over a 29:47 29 minutes, 47 seconds period of time there is has been an inflation. So in this differential we have to also reduce the cost of power the cost of labor and other component 29:56 29 minutes, 56 seconds cost which is also marginally increased over a period of time. So considering that factor also this normally the 90 30:03 30 minutes, 3 seconds rupees should a minimum margin should now be minimum at least 100 rupees that is now become a a minimum site. So as 30:11 30 minutes, 11 seconds far as this 125 rupees is concerned, I think this is the median of the margins and I feel that looking to the capacities which has gone down in the 30:20 30 minutes, 20 seconds country demand which is coming up going forward with the kind of various measures which has been taken. I feel 30:27 30 minutes, 27 seconds that this 120 to 125 rupees margin should be sustainable going forward as well. almost. So, and the question is 30:35 30 minutes, 35 seconds with regards to like a capacity reduced in the country, is it uh possible that 30:43 30 minutes, 43 seconds this supply will potentially come back given spreads are now higher or do you expect it to uh stay offline? 30:55 30 minutes, 55 seconds There's no way back. 30:58 30 minutes, 58 seconds Some of these capacities have gone out because of uh obsolence because of uh 31:04 31 minutes, 4 seconds lack of working capital also for various other reasons. So I don't expect that majority of the capacity which had very 31:13 31 minutes, 13 seconds small economic sense will come back. Uh but yes of course uh the new capacities can come up. some some companies which 31:22 31 minutes, 22 seconds is in the middle of that can modernize and improve their uh increase their capacities. Yes, of course that is always possible. 31:32 31 minutes, 32 seconds All right, that's all for me. Thank you. 31:35 31 minutes, 35 seconds Thank you. The next question is from the line of Rahul Jane from Grad and please go ahead. 31:42 31 minutes, 42 seconds Thanks for the opportunity. Uh so first of all uh how have the synthetic prian prices um moved in last 3 months or 31:51 31 minutes, 51 seconds specifically post war uh the polyester prices we understand have moved up. So how have they shaped up and how do you 32:00 32 minutes look at in terms of the spread between your final product and the raw metal prices? 32:06 32 minutes, 6 seconds Yes, that has uh significantly if you see the polyester prices have moved up by about 20% plus since this is 32:14 32 minutes, 14 seconds increased increase of more than 20% highest than any other raw material and consequently the yarn prices have also 32:21 32 minutes, 21 seconds moved in tandem. Uh of course their margins have not increased substantially. The margins still remain at the levels which were there in the 32:29 32 minutes, 29 seconds month of uh March. uh they are they have not the spread has not been increasing to the extent it which people would like. Yes, 32:39 32 minutes, 39 seconds in the blended yarns this has uh improved marginally the where where the polyester cotton is concerned or uh that kind of yarn where the cotton is 32:47 32 minutes, 47 seconds involved or the cotton and other cotton blended with other synthetic fibers their margins have improved but in in 32:55 32 minutes, 55 seconds purely in synthetics the margin has still remained static. 33:00 33 minutes So is it difficult to pass on the synthetic uh raw metal push given China could also be a competitor in this 33:07 33 minutes, 7 seconds specifically uh in terms of the exports? 33:12 33 minutes, 12 seconds No, it is not. So actually uh that is not the case. The major uh if you see our synthetic exports majorly especially 33:21 33 minutes, 21 seconds on the blended sides the polyester viscos and others have been to the uh Asian middle east and uh middle east and 33:29 33 minutes, 29 seconds the African continent. So there because of this logistics issues and the problems which is still persisting the goods not getting transited over there. 33:38 33 minutes, 38 seconds So that is why we are not able to export only that is creating slightly more available capacity in the domestic market and that is hitting once this 33:47 33 minutes, 47 seconds gets over we expect that all this uh the increase will also happen in the synthetic market also. 33:55 33 minutes, 55 seconds With regards to the cotton which you mentioned, I understand that last year on an average till the war started 34:03 34 minutes, 3 seconds the spreads were around 110 plus or minus two and then in last post the war 34:10 34 minutes, 10 seconds the spreads have moved up to almost 125 as what you stated. So what are the primary reasons for this going up? 34:20 34 minutes, 20 seconds There are couple of reasons I have highlighted in my speech as well. First of all, the prime reason is there is a 34:28 34 minutes, 28 seconds one one which is there is there was a lot of petoalking happening when the prices went down lot of restocking happened and because of uh lesser 34:36 34 minutes, 36 seconds operational capacities also the prices were once they are going down tendency to buy less. So that is so that restocking things started from January 34:45 34 minutes, 45 seconds of this year. So that is one of the reason. Second reason is the transit times across the globe has increased 34:52 34 minutes, 52 seconds that created a fear among the customers that they may be out of the stock. So they have wanted to buy more or you can 34:59 34 minutes, 59 seconds say there were more goods on the sea. So that that that also helped in u increasing the demand to a certain 35:06 35 minutes, 6 seconds extent and plus the prices the raw material prices which were at the all-time low levels they could not cannot remain at that level forever. 35:15 35 minutes, 15 seconds looking to the cost of the raw material production. So that has also helped in increasing the raw material cost and consequently the prices. 35:24 35 minutes, 24 seconds So sir we understand also that you know the yarn ability from China somewhere specifically on the cotton side. So there have been issues on the cotton and 35:33 35 minutes, 33 seconds cotton yarn from China and the shift from polyester to cotton given the polyester prices in domestic have gone up substantially post the war started. 35:43 35 minutes, 43 seconds How much of these two reasons uh could be you know the reasons for the spread increase on the cotton y 35:51 35 minutes, 51 seconds I I don't think so that uh still the the effect of polyester shift has happened mean whatever polyester shift was to 35:59 35 minutes, 59 seconds happen has started to happen uh only in April May but that is also not very major uh China has a very good capacity 36:07 36 minutes, 7 seconds of polyester manufacturing and rather they they decide the prices at which the polyester is sold all over the world. So 36:14 36 minutes, 14 seconds I don't see any major uh dent happening in the demand side of uh the polyester and still polyester is quite cheaper 36:23 36 minutes, 23 seconds than the raw cotton. If you see in last 3 months time the polyester have prices per kg has increased by about 25 to 27 36:31 36 minutes, 31 seconds rupees a kg and cotton price has increased in per kg terms in rupees is about 30 to 35 rupees. So it does not uh 36:42 36 minutes, 42 seconds there is no advantage as such going in for uh replacement of polyel at this point of time. Okay. And with regards to 36:50 36 minutes, 50 seconds cotton and cotton young prices moving because of the China factor. 36:56 36 minutes, 56 seconds China was contributing to this because they were buying more of uh raw cotton as well as uh 37:04 37 minutes, 4 seconds cotton yarn but that has not been very substantial I would say still if you see if you see the numbers in the mar month 37:11 37 minutes, 11 seconds of March uh the shipments which were going to China has just increased marginally from 10 11% to 15 16%. It has 37:20 37 minutes, 20 seconds not gone up quite substantially. uh this used to be in the range of 30% plus uh four years back. So I would not 37:29 37 minutes, 29 seconds attribute all the increase in the margins to China alone. 37:34 37 minutes, 34 seconds Thank you sir. Thank you. All the question thank you. A reminder to all participants that you may press star and 37:43 37 minutes, 43 seconds want to ask question. The next question is from the line of Sarange Gupta from Suan Investment. Please go ahead. 37:52 37 minutes, 52 seconds Hello. Am I audible? Yes sir, you are. 37:56 37 minutes, 56 seconds Hi. Thank you for the opportunity and congratulations on a great I just wanted to understand like how the fabric uh fabric segment is panning up like you 38:05 38 minutes, 5 seconds did mention quite a few times that the yarn prices have increased uh followed by uh due to the uh war uncertaintity. 38:13 38 minutes, 13 seconds So has that been flowing in the uh fabric prices also and are we able to pass it on to the customer? 38:23 38 minutes, 23 seconds Yes, that is happening on uh uh the fabric side also but that is that happens with a slightly lag and uh we 38:30 38 minutes, 30 seconds have we have also increased our prices in the fabric side and expected to increase. So this takes a bit more time than the yarn price like cotton to yarn 38:39 38 minutes, 39 seconds it is uh faster but in case of yarn to fabric it takes more time. So that will happen over a course of period. We have already started to increase the prices. 38:49 38 minutes, 49 seconds And just one more question that uh what would be the total contribution of a knitted fabric and woven if you can quantify in for an effort 38:58 38 minutes, 58 seconds we've already given in our investment presentation but for your just for your uh this thing 22% is our total fab sales 39:05 39 minutes, 5 seconds from revenue from the uh fabric sales all put together 39:12 39 minutes, 12 seconds yeah that I know I just wanted if you can if you can help us with the number of how much was contributed to knitted fabric. 39:22 39 minutes, 22 seconds Knitted fabric contribution was I think uh the woven fabric is around 20% and knitted fabric is another 2 3%. 39:31 39 minutes, 31 seconds That's all that's Thank you. The next question is from the line of Salony Munchi from Brazil. 39:41 39 minutes, 41 seconds Please go ahead. Yeah. Hi. Am I audible? Yes ma'am. 39:46 39 minutes, 46 seconds Yeah. So I just wanted to understand in Q4 you mentioned that the demand had improved. So are the domestic demand 39:54 39 minutes, 54 seconds you're talking about or the export demand both sides in the domestic market also 40:01 40 minutes, 1 second uh the demand has improved as well as in the international market. 40:06 40 minutes, 6 seconds Okay. And do you have any uh outlook regarding the export? So export demand has been little for the yan specific the 40:13 40 minutes, 13 seconds export to China has increased but the export to Bangladesh has decreased as well. So do you have any outlook on how 40:20 40 minutes, 20 seconds it will pan out like demand I think uh we have seen that 40:27 40 minutes, 27 seconds there there's a steady demand of uh uh exports if you see the total number of exports about 100 million kgs of yan has 40:35 40 minutes, 35 seconds been exporting out on an average basis from our country to various markets. I think this 100 million kgs 40:44 40 minutes, 44 seconds will be still maintained and we can do it we can think about slight increase maybe about 5 to 10%. Uh going more 40:52 40 minutes, 52 seconds towards because of the increase in demand coming in from China. Uh so that is so we expect that the incremental 40:59 40 minutes, 59 seconds demand internationally will be about 10%. 41:03 41 minutes, 3 seconds Okay that's it from my side. Thank you so much. 41:10 41 minutes, 10 seconds Thank you. The next question is from the line of Anil Kumar, an individual investor. Please go ahead. 41:18 41 minutes, 18 seconds Yes. Thank you for the opportunity. Uh first of all, congrats for the good set of numbers sir. So my question is regarding 41:25 41 minutes, 25 seconds uh inventory. How much inventory we are having on the cotton side and finished good sides and how much months it months inventory we are having and what is the 41:33 41 minutes, 33 seconds status of the number? Second question is regarding FDA. How do how but how uh much how do you think that how much we 41:41 41 minutes, 41 seconds can increase total demand will be increased when the affiliate materialized so question 41:48 41 minutes, 48 seconds uh first of all uh I'm sorry that I can cannot share the numbers on the inventory site so you can extrapolate on 41:56 41 minutes, 56 seconds your own since the balance sheet and other numbers are available to you so you can see that on your own as well. Uh secondly, as far as uh FTAs are 42:05 42 minutes, 5 seconds concerned, I think uh we should be expecting very good demand coming in especially uh from the Europe FTA. Most 42:14 42 minutes, 14 seconds of the international bigger brands are are there in uh Europe uh as well as in 42:22 42 minutes, 22 seconds the UK. So this demand should this should increase our garment uh demand as well as the fabric demand which is which 42:29 42 minutes, 29 seconds is there which they are sourcing at the at this point of time from our competitors like Bangladesh, Vietnam and China. So there there is a significant 42:37 42 minutes, 37 seconds demand increase expectation. Uh China plus also we are seeing that lot of uh the inquiries are coming in from all 42:46 42 minutes, 46 seconds these brands and they want to diversify their sourcing uh instead of all these countries towards India looking into the 42:54 42 minutes, 54 seconds stability the uh I must say the geopolitical stability which we are having and also an availability of the 43:02 43 minutes, 2 seconds complete chain of textiles in our country. So we should be able to rectify this pretty well but the only thing is 43:09 43 minutes, 9 seconds that we need to be sure that we are able to uh cater to the increased demand in a swift and fast manner. 43:17 43 minutes, 17 seconds Okay sir sir then my second last question will be sir what do you think when is it possible for the government 43:25 43 minutes, 25 seconds can go for this duty consumption that is the main demand of the industry what is your views on that is any progress is 43:31 43 minutes, 31 seconds there anything any comments on that we have uh as a industry we have always all been vifering about this removal of 43:40 43 minutes, 40 seconds duty uh we in fact we want that they should they should be permanently removed We have a mechanism in India by which 43:48 43 minutes, 48 seconds which is and minimum support price. So there is a complete production of the farmer and also any increase in the input cost will automatically be increased in the minimum support price. 43:58 43 minutes, 58 seconds So there is no threat to the farmer because of uh any removal of duty or anything which we have also seen uh when 44:06 44 minutes, 6 seconds the last time the duty was removed for four five months. So we have been requesting uh the uh finance ministry as 44:13 44 minutes, 13 seconds well as textile ministry and agriculture ministry to remove the duty for complete uh forever like it was possible in 20 44:21 44 minutes, 21 seconds from the year 2010 to 2021. However we have been uh also requesting that for immediate relief this should be removed 44:29 44 minutes, 29 seconds for first 6 months and we can have a debate on this for a permanent removal. 44:34 44 minutes, 34 seconds So there is a progress on this subject uh but it only depends on the government uh how they move about it and what how 44:42 44 minutes, 42 seconds do they think about growing the textile industry. Okay sir wishes thank you. 44:49 44 minutes, 49 seconds Thank you. 44:51 44 minutes, 51 seconds The next question is from the line of Lakshmi Narayan from Kashm Private Limited. Please go ahead. Yes sir. Am I audible? 44:59 44 minutes, 59 seconds Yes sir you are. Uh sir uh I want to could you throw some light on whether the forecasted weather conditions on any 45:08 45 minutes, 8 seconds would have impact on going forward. 45:15 45 minutes, 15 seconds Uh as far as the cotton is concerned in India we have uh since last year there 45:21 45 minutes, 21 seconds was good rains we have uh good reser water reservoir available and many of the areas especially in the northern 45:29 45 minutes, 29 seconds part and western part is based on the irrigated uh basically on the water which is goes from the all these 45:36 45 minutes, 36 seconds reservoirs. So as of now till now we are not expecting already the crop was lower last year and we are not expecting the 45:43 45 minutes, 43 seconds crop to go down from this level uh even if there is uh lesser rains and also the if you see the geographical distribution 45:52 45 minutes, 52 seconds of the rains also we find that in most of the cotton growing areas we are not going much below the normal. 46:00 46 minutes Okay that that's all. 46:05 46 minutes, 5 seconds Thank you. The next question is from the line of Reina Kaisha from an individual investor. Please go ahead. Yeah. 46:12 46 minutes, 12 seconds Hi, thank you for the opportunity. I have a few questions. One is is on the the the your reply on on the import duty 46:22 46 minutes, 22 seconds on cotton. Could you elaborate on is there any communication on on from the side of the government post December? Uh 46:30 46 minutes, 30 seconds well media articles do state that the industry has asked for a removal again but um I was just wondering is there any communication the industry has received 46:39 46 minutes, 39 seconds from the government that's my first question um my second question is is on you gave guidance for the margins being 46:47 46 minutes, 47 seconds around 15 to 20%. uh anything on the topline front? Um if not qual quantitatively, could you u could you 46:57 46 minutes, 57 seconds comment on what is the focus or or how uh does Nathan Spinners expect to uh 47:04 47 minutes, 4 seconds grow its topline in in the next couple of years? And my third question was on the knitted fabric production which was 47:13 47 minutes, 13 seconds uh uh down. uh could you uh c can you comment on the reason for this and and uh and how do we see this going forward? 47:23 47 minutes, 23 seconds Yeah. So first of all uh your first question communication with the government by the government uh normally 47:32 47 minutes, 32 seconds uh government does not communicate to the industry. It is the industry which communicates continuously with the government and we have been uh 47:41 47 minutes, 41 seconds putting our request and demand to various uh indust various government officials and the ministers who are 47:48 47 minutes, 48 seconds concerned with this that is finance minister, textile minister, commerce minister and the agriculture minister and there there has been lot of 47:56 47 minutes, 56 seconds discussions on this of late uh our parent organization city competition of Indian textile industries have also 48:03 48 minutes, 3 seconds released a white paper on the need of the uh uh to uh remove the duty permanently and because if you want to 48:10 48 minutes, 10 seconds grow the industry we need to have a more pragmatic approach and need more raw materials. So that is already been there 48:18 48 minutes, 18 seconds and uh all the ministry officials all the concerned people are uh aware of these facts. So uh there has been a continuous dialogue which is happening. 48:27 48 minutes, 27 seconds Various representations are being made and also we are receiving various uh uh I must say concerns of the various 48:35 48 minutes, 35 seconds ministries also in this. So there is a ongoing process. Uh we expect to have a uh fruitful result out of this. So that 48:43 48 minutes, 43 seconds is one part. Second part on the sorry to interrupt just on the timeline of that uh how soon do you expect any any 48:51 48 minutes, 51 seconds madam we cannot we can we cannot put the timelines to the government unfortunately this is something just your sense of yeah just your sense 49:00 49 minutes of it do you see that happening in the next 6 months one year we are of course it should happen 6 months is a long period we should we 49:09 49 minutes, 9 seconds should be able to see this before that but a long-term solution I I still feel there will be they will need another five to 6 months if they formulate a new 49:18 49 minutes, 18 seconds uh textile policy which covers all that all the raw materials are reasonably available then they should happen earlier as well so that is something 49:26 49 minutes, 26 seconds which uh we are uh pushing on from the industry side Mr. 49:32 49 minutes, 32 seconds Yes. And secondly, as you were asking about the increase in the top line as well as uh the revenues going forward, 49:39 49 minutes, 39 seconds as you know, we have we we have embarked upon a capacity expansion of more than,000 crores nearly, 1100 crores. So 49:47 49 minutes, 47 seconds this should yield us uh another more than 1,000 crores in our top line going forward. So that is one part. Apart from 49:54 49 minutes, 54 seconds this, the normalization of the yan prices should also contribute to about 5 to 7% of our existing turnover. We have 50:02 50 minutes, 2 seconds degrone last year. We expect to recoup that plus some certain additional uh uh gain out of the present prevailing 50:10 50 minutes, 10 seconds prices. So in all put together, we expect that we should be uh from here onwards we should be easily able to add 50:18 50 minutes, 18 seconds 30 to 35% of our to our existing revenue numbers. 50:23 50 minutes, 23 seconds Third question was regarding Yeah. of course FYI. 50:28 50 minutes, 28 seconds Okay. Got it. And and as as far as knitting is concerned, uh as a knitting business, we have uh the major exposure 50:37 50 minutes, 37 seconds on the knitting side as you know from India as well as from our company also was through the various brands across 50:44 50 minutes, 44 seconds the in US and that was one of the prime when the tariff was imposed this being a low value item this was the 50% tariffs 50:54 50 minutes, 54 seconds uh it could not handle the 50% tariff so that's why we had to reduce our productions on this side. Now as the tariff is reduced that it is now coming 51:03 51 minutes, 3 seconds back to the normaly level and we should be expecting the knitting fabric knitted fabric production to be better than what it was. But in this process in last one 51:11 51 minutes, 11 seconds year we also lost some of the customers to other competing countries which we are trying to make up and hopefully with 51:19 51 minutes, 19 seconds the domestic demand of knitted fabric going up since the garmenting locally is also will improve given the FDA with UK 51:27 51 minutes, 27 seconds as well as FT with Europe we expect that the normally utilization level of 65 to 70% will come back to the knitted fabric 51:35 51 minutes, 35 seconds in another one one to one and a half year. 51:39 51 minutes, 39 seconds Understood. Understood. Thank you so much. 51:44 51 minutes, 44 seconds Thank you. The next question is from the line of Harish Mittal from MK Global Financial Service. Please go ahead. 51:52 51 minutes, 52 seconds Yeah, thank you. Good evening to the team. Uh sir, I have two very small questions. First question being that we 51:58 51 minutes, 58 seconds manufacture gas based yarns. Uh so have we seen any disruption uh in the manufacturing of the same given that uh 52:07 52 minutes, 7 seconds the gas prices have uh doubled or rather 3x uh in the past 2 months after the uh 52:13 52 minutes, 13 seconds outbreak of the war and uh has that been accounted in the quarter four margins? That is my first question. 52:22 52 minutes, 22 seconds First of all, uh in the yan business, gas based yarn is very very small number and uh uh uh the requirement of gas was 52:31 52 minutes, 31 seconds also very small for us. Uh we had a very small disruption of less than a day uh since we were having the stocks of gas. 52:41 52 minutes, 41 seconds But of course the cost has increased and uh it is nearly at this point of time one it has gone up 1.7 times from what 52:50 52 minutes, 50 seconds it was in the February. So uh in view of the overall cost that is not significant at this point of time and that is easily 52:58 52 minutes, 58 seconds passed on also because this is a global phenomena and not only a phenomena which is there only in one of the companies. 53:06 53 minutes, 6 seconds Understood. The second question is that when we say the spreads are currently at 120 125 uh how should we look at in 53:16 53 minutes, 16 seconds terms of count is it 30 count 60 count or uh what is the exact uh count uh 53:24 53 minutes, 24 seconds specificification we should look at basically uh this is on an average of 53:30 53 minutes, 30 seconds about uh 33 34 count 33 and 34 I say 33 34 count on 30's count if you 53:39 53 minutes, 39 seconds go by the average spread today the average spread would be about 120 got thank you these are my questions 53:46 53 minutes, 46 seconds thank you thank you the next question is from the line of Vun Podu from Smith Limited 53:54 53 minutes, 54 seconds please go ahead good evening team uh thank you so much for the opportunity my I have just a few questions and I think most of them were 54:02 54 minutes, 2 seconds answered before this uh my first question is on the lines of the utiliz utization. Uh the yarn utilization is 54:09 54 minutes, 9 seconds approximately 99 and the fabrics are about 90% and above. So how do you see the next two quarters spanning out 54:17 54 minutes, 17 seconds considering the incremental demand for uh the fabrics and the yarn? Uh how do you plan on that before the KFX uh gets executed? That is the first question. 54:28 54 minutes, 28 seconds You can answer that. 54:32 54 minutes, 32 seconds So basically the utilization uh these are the peak level utilizations. 54:36 54 minutes, 36 seconds uh given the complexity of the business I think this is the kind of utilization will continue slightly in the summer period some slight utilization comes 54:45 54 minutes, 45 seconds down because of uh extraordinary heat uh that is a normal process so we expect that the utilization to be in the range 54:52 54 minutes, 52 seconds of 97 to 98 for the yarn business and for the fabric business it will also be 90 plus only so this will continue for next two quarters before the new capex 55:01 55 minutes, 1 second comes on board okay so are we focusing more on the woven fabric right now uh if we look at the fabric segment or the finished fabrics more. 55:11 55 minutes, 11 seconds So the new expansion is completely integrated and whatever capacity we are putting on the woven side is also for the finished fabrics. So it will be a 55:19 55 minutes, 19 seconds complete end to end finished fabrics only. 55:23 55 minutes, 23 seconds Okay. And my second question was on the side of the debt that you would be utilizing for the FX. uh you mentioned 55:30 55 minutes, 30 seconds your total debt would be maxed out at 1,900 crores or uh can I just uh understand what would be the approximate average cost of borrowing for the film? 55:41 55 minutes, 41 seconds Average cost of borrowing for us is about uh 5.6% average is 5.6% at this 55:48 55 minutes, 48 seconds point of time and uh the working capital which is is less than 7%. So that is the blended if you blend it out it should be in the range of 6.5 to 6. 56:00 56 minutes Okay. And one more small question was on the lines of the geographies that you've added recently. Uh so is there any major uh geographies that you've added and 56:08 56 minutes, 8 seconds that you look into as a very big scope for uh improving your export business? 56:15 56 minutes, 15 seconds As such see geographies we have just increased our reach in the geographies. 56:19 56 minutes, 19 seconds We are present in most of the continents at this point of time. 56:23 56 minutes, 23 seconds uh now since we are seeing FDA happening with New Zealand already we were present in Australia so that is an area where we 56:31 56 minutes, 31 seconds are focusing and that could be one of the areas where we can increase our footsteps going forward okay yeah that would be it thank you so 56:40 56 minutes, 40 seconds much thank you due to time considerate we take one last question from the line of 56:47 56 minutes, 47 seconds Udai Kumar from UK capital 3 please go ahead Hi sir, I'm audible. 56:56 56 minutes, 56 seconds Yes sir. 56:58 56 minutes, 58 seconds Just one last question on the uh war front. You already mentioned uh in the earlier uh earlier that you have some delays uh pertaining to the Iran US war. 57:09 57 minutes, 9 seconds To what extent it has impacted your logistic costs or or revenue in in that sense? Do you see uh still some impact going forward? 57:20 57 minutes, 20 seconds First of all, as far as our revenues are concerned, we have no impact as our exposure to that particular area is very minuscule. 57:29 57 minutes, 29 seconds So, so that is on the revenues. There is no impact. Yes, there is uh transit uh transit time increases for most of the 57:38 57 minutes, 38 seconds uh destinations especially going towards Europe and others. So there is an increase of about uh two weeks time the 57:46 57 minutes, 46 seconds transit has increased plus there is a sea freight costs have increase also sea freight cost there is an increase 57:52 57 minutes, 52 seconds especially for the Europe uh is there is increase of about 75 to 80% increase in comparison to what was there in the 58:01 58 minutes, 1 second month of uh February and rest of the world also there is an increase of about 15 to 20% given the increase in the 58:09 58 minutes, 9 seconds crude So this will be impacted in the margins right or are you passing on this? 58:17 58 minutes, 17 seconds Most of the trade costs are normally passed on because most of the sales happen on the FOB basis. Maybe some small impact comes in which is already 58:26 58 minutes, 26 seconds factored in already in our uh in the numbers like in fe March in fact the 58:33 58 minutes, 33 seconds since March the price the se rates have normalized uh what it was there in the March. 58:39 58 minutes, 39 seconds uh it is already factored in the numbers. 58:43 58 minutes, 43 seconds Thank you sir. Thank you for answering my question. Thank you. I now hand the conference over to Mr. 58:52 58 minutes, 52 seconds Anesh Chandra for closing comment. Please go ahead. 58:57 58 minutes, 57 seconds Sir before taking your closing comment one quick question. Our new capex is anyway getting commissioned in the second half. uh and we understand that 59:05 59 minutes, 5 seconds you will not have concrete number uh for future capex but sir any indicative thought related to future plan from you 59:12 59 minutes, 12 seconds will be helpful at this point of time I would not be able to comment on the future capeex as 59:21 59 minutes, 21 seconds we have already uh if as you see uh apart from the uh capeex which we had done we have already done an additional 59:28 59 minutes, 28 seconds capex of about 230 40 crores uh on the energy side so that is again out of the uh which was not originally planned 59:37 59 minutes, 37 seconds before last year. Further we keep on looking at various avenues available. At the moment I cannot give any number but definitely there are many things on the 59:46 59 minutes, 46 seconds drawing board. As soon as it comes up we will definitely share with you. Sure. 59:51 59 minutes, 51 seconds And uh continue sir with this. Yeah. Yeah. With this I would 59:58 59 minutes, 58 seconds like to thank uh everyone for taking out the time to joining the call and I hope we have been able to address all your 1:00:06 1 hour, 6 seconds queries. I also thank Smith's team and Aiji for hosting the call. For any further information kindly get in touch 1:00:15 1 hour, 15 seconds with our finance team or our investor relation advisors and uh thank you once again see you all over again in the uh next. 1:00:26 1 hour, 26 seconds Thank you. 1:00:28 1 hour, 28 seconds On behalf of Smith Limited, that concludes this conference. Thank you for joining us.