Sejal Glass Ltd — Q3 FY26

Sejal Glass Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=io8U2w4IQRs Published: 2 months ago

0:00 Ladies and gentlemen, good day and welcome to Q3 and 9 month FA26 risk conference call of SEL Glass Limited 0:08 8 seconds hosted by Kin Advisor. As a reminder, all participant line will be in the listen only mode and there will be an opportunity for you to ask questions 0:16 16 seconds after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on 0:24 24 seconds your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. 0:31 31 seconds Ganesh Nalaware from Kin Advisers. Thank you and over to you sir. 0:38 38 seconds Thank you. On behalf of Kin Advisers, I welcome you all to the conference call of SEL Glass Limited. From the 0:45 45 seconds management team, we have Mr. Amrud Gada, promoter of the company and Mr. Chandesh Rambia, Chief Financial Officer. 0:53 53 seconds With that, now I hand over the call to Mr. Amrud Gada for the opening remarks. Over to you sir. 0:59 59 seconds Thank you. Uh good afternoon everyone and a very warm welcome to all our investors analyst and the shareholders 1:07 1 minute, 7 seconds joining us today for the Q3 and 9 months FI26 earning conference call of Sel Glass Limited. We sincerely appreciate 1:15 1 minute, 15 seconds your continued trust and support. Sel Glass has been enhancing space and building trust over two decades. We are 1:23 1 minute, 23 seconds engaged in manufacturing highquality architectural glass solutions catering to a wide spectrum of enduser industries 1:30 1 minute, 30 seconds including residential and commercial real estate, public infrastructure, industrial plants, hospitals, financial institutions, high security zones, 1:39 1 minute, 39 seconds educational institutes, data centers and laboratories with a state-of-the-art manufacturing facilities in India and 1:46 1 minute, 46 seconds the UAE supported by over 150 supply chain partners and strong client base of more than 500 customers. 1:53 1 minute, 53 seconds We have built a scalable and resilient ecosystem under our product portfolio. 1:58 1 minute, 58 seconds We offer comprehensive range of high performance architectural glass solution including toughen glass, laminated safety glass, insulated glass units, 2:07 2 minutes, 7 seconds digital printed glass and decorative and specialtity glasses. Our advanced manufacturing process such as precisions 2:14 2 minutes, 14 seconds cutting and sapping specialized heat treatments, lamination and insulating glass assembly enable us to deliver quality products that balance safety, 2:23 2 minutes, 23 seconds durability, thermal efficiency and aesthetics. 2:27 2 minutes, 27 seconds The increasing preference for the value added and performance glass continue to align well with our core capabilities. 2:34 2 minutes, 34 seconds Coming to our financial performance for the 9 month ended financial year 26 we reported total consolidated income of 2:42 2 minutes, 42 seconds 284.51 cr with iita of 46.60 cr showcasing iita margin of 16.38%. 2:51 2 minutes, 51 seconds The company has reported an operational p of 17.61 cr during the quarter end 31st December 2025. The company has 2:59 2 minutes, 59 seconds allocated 13 lakh equity share of face value of 10 each by way of referential issue at an issue price of 555 per share 3:08 3 minutes, 8 seconds including fair premium of 545 per share aggregating rupees 72.15 cr to the promoter and non-promoter 3:17 3 minutes, 17 seconds group. The company has received the listing permission for the sale equity sales from Bombay stock exchange and national stock exchange. Further, the 3:24 3 minutes, 24 seconds company has allotted four lakh warranties warrants convertible into equity shares of face value of 10 each by way of preferential issue at an issue 3:32 3 minutes, 32 seconds price of 555 per warrant. Aggregating the 22.20 22.20 crores to the promoters and the promoter 3:41 3 minutes, 41 seconds group as per the agreed terms. During the time of issuance of the warrant, the company received an upfront payment of 1 3:47 3 minutes, 47 seconds cr 38 lakhs 75 per warrant representing 25% of the warrant issue price amounting to 5.5 cr and balance 75% will be 3:57 3 minutes, 57 seconds received amount the exercise of the warrant. 4:02 4 minutes, 2 seconds From an industry standpoint, the environment remains supportive. In India, residential real estate sales across major cities have remained 4:10 4 minutes, 10 seconds healthy with premium and mid income housing witnessing a steady demand. 4:14 4 minutes, 14 seconds Commercial real estate leasing particularly in office space and data center continue to show a resilence. The data center segment alone is seeing 4:22 4 minutes, 22 seconds strong capacity additions driven by digitalizations and cloud adoption which directly supports demand for high 4:30 4 minutes, 30 seconds performance facade and insulator glass solution. Infrastructure activity remains robust with continue investment in airports, metro rail, hospitals, 4:39 4 minutes, 39 seconds institutional buildings, ter cruise terminals. There is also a clear shift towards energy efficience and sustainable construction with green 4:47 4 minutes, 47 seconds building certifications and stricter building code encouraging the adoptions of double glaze and solar control glasses. Rising temperature and energy 4:55 4 minutes, 55 seconds cost are further accelerating demand for insulated and laminated class solutions that improve thermal efficiency and 5:03 5 minutes, 3 seconds reduce energy consumption in the GCC region as well. Infrastructure expansion, hospitality projects and 5:10 5 minutes, 10 seconds commercial development continue to support demand for architectural glass. 5:14 5 minutes, 14 seconds Capacity utilization trends across the industry remain stable and there is a noticeable performance of the company in value well segment which align well with 5:23 5 minutes, 23 seconds our strategic focus. Looking ahead we remain optimistic about our long-term growth trajectory. Our focus will continue to be on improving utilizations 5:31 5 minutes, 31 seconds level expanding our presence in key metros and JCC region strengthening the relationship with the architect and developers and enhancing our value added 5:40 5 minutes, 40 seconds product mix. We will also continue investing in technology process optimizations and operational discipline to improve efficiency and margins. At SE 5:49 5 minutes, 49 seconds glass, our objective is not just to manufacture glass but to deliver solution that enhance space with the safety, performance and design 5:56 5 minutes, 56 seconds excellence. With improving industry tailwinds, a strong manufacturing backbone and a discipline execution strategy, we believe we are well 6:04 6 minutes, 4 seconds positioned to capitalize on emerging opportunities and create a sustainable long-term value. On that note, I would 6:11 6 minutes, 11 seconds like to thank all of you once again for joining us today. I now open the floor for the questions. Thank you. 6:18 6 minutes, 18 seconds Thank you so much sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. 6:29 6 minutes, 29 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. 6:38 6 minutes, 38 seconds Ladies and gentlemen, we'll wait for a moment while the question Q assembles. 6:45 6 minutes, 45 seconds Our first question come from the line of DR Tolani from Kuber Advisor. Please go ahead. 6:51 6 minutes, 51 seconds Uh yeah, thank you sir. So I just have couple of questions with me. So I'll just start with the first one on the segmental part. So uh as I see like high 6:59 6 minutes, 59 seconds value segments at the Aspire rated bulletproof or digitally printed glass appear strategically important. So could 7:07 7 minutes, 7 seconds you explain the revenue potential uh margin profile and even entry barriers in these things? 7:13 7 minutes, 13 seconds See uh we have tie up with the one of the Spain uh technology provider company for the fire product. So this fire 7:22 7 minutes, 22 seconds product production will start I think after yet 3 months or uh in the first uh quarter of uh next finance year. 7:30 7 minutes, 30 seconds Bulletproof. Our testing has been done and now we are approaching in the market. And uh uh third item uh is a 7:38 7 minutes, 38 seconds digital printing. Digital printing already we have started the production which uh the production line was in the glass facility which we have acquired. 7:49 7 minutes, 49 seconds So uh all these three front the real you know profitability and the market share 7:56 7 minutes, 56 seconds or the uh impact on the IITA will start coming I think from the next finance year. 8:04 8 minutes, 4 seconds Uh so how do you plan to scale these uh niche products from approval and certification to customer education and 8:11 8 minutes, 11 seconds what like when do you expect them to start contributing meaningfully to the profitability? I think you know Q3 of uh 8:20 8 minutes, 20 seconds next finance years uh Q4 or next or in the medium term you can say. 8:30 8 minutes, 30 seconds Yeah, middle term. Yes. 8:34 8 minutes, 34 seconds Digital printing already started little bit of contributions but uh yet the more contribution will come in next finance year. 8:42 8 minutes, 42 seconds Okay. Okay. You know we have to project then we have to uh you know take the approval certain approval is from the 8:50 8 minutes, 50 seconds government in different different country there is a different rules for the related to the fire. 8:58 8 minutes, 58 seconds Yeah. And also in the fire product we have to you know tie up with the certain fabricator. So whole ecosystem will work with uh fire installation. 9:09 9 minutes, 9 seconds Okay. And uh like in this competitive market are you facing uh any competition from the chi China or or any global major? 9:17 9 minutes, 17 seconds Uh no we are facing competitions from the global even the sand go has also the fire product uh and uh certain organized players in 9:26 9 minutes, 26 seconds India is also Chinese player are also there but you know the production capacity versus the market in India is a 9:34 9 minutes, 34 seconds total different. So yet you know we are not getting so much pressure on the competition because our market share is very limited as on today once we you 9:42 9 minutes, 42 seconds know grow by 25% market share or more than that then we will have a more pressure from the competition. 9:49 9 minutes, 49 seconds M so uh like um what do you believe like how like how defensible competitive 9:57 9 minutes, 57 seconds advantage we are having like how are we strengthening these like over time I would say are you doing any uh anything 10:04 10 minutes, 4 seconds to gain market share or we just meaningfully increase in our business. 10:10 10 minutes, 10 seconds No see particularly looking at the market uh first of all you know we focus in last two three years we are focusing 10:19 10 minutes, 19 seconds on the product quality number one number two service uh this service includes uh lead time 10:27 10 minutes, 27 seconds or after sale services and particularly certain you know sampling uh and mockup to be installed on the project. So there 10:35 10 minutes, 35 seconds is one is our competition competitive advantage. Second the technology all technology what we have mostly from the 10:42 10 minutes, 42 seconds Europe. Third part the people uh the team what we have either in the sales or either in the production the production 10:50 10 minutes, 50 seconds team on the skilled uh labor force and the uh supervisors and uh you know uh system and process. 11:00 11 minutes Yeah. and experience uh this thing and certain level the brand recall of as a sel glass 11:07 11 minutes, 7 seconds and fourth geographical advantage we have now you know three units in India 11:14 11 minutes, 14 seconds so we we are in the south uh one is in taloja one is in silvasa so uh that 11:20 11 minutes, 20 seconds advantage also and the capacity so particularly now I can say that we are the 11:28 11 minutes, 28 seconds uh in tempering I think we are the largest capacity. 11:34 11 minutes, 34 seconds So uh I bigger project requirement. Hello. 11:42 11 minutes, 42 seconds Yeah. 11:46 11 minutes, 46 seconds Also uh if I could see like why your depreciation cost has increased significantly. So are we uh are we 11:53 11 minutes, 53 seconds capitalizing any um fixed fixed asset amount or or anything else? No, no, no. 12:00 12 minutes It's not such a thing. I think CFO will answer you. 12:04 12 minutes, 4 seconds Yeah. So, the depreciation is not increasing uh uh to that extent. The only impact is the capitalization which 12:11 12 minutes, 11 seconds was done in the first quarter uh in regards to uh UAE uh there is a facade 12:18 12 minutes, 18 seconds facility what we had capitalized in the first quarter end. So the only impact was that only and apart from that the 12:25 12 minutes, 25 seconds glass acquisition which we did in May and uh June so started from June and 12:32 12 minutes, 32 seconds July. So the impact of that also so the full cutter comes only in this uh 12:39 12 minutes, 39 seconds got it got and also if let's say a glass pack glass uh ramps up so how will it 12:48 12 minutes, 48 seconds product mix and utilization profile and the margin trajectory compared with the like our company legacy operations 12:58 12 minutes, 58 seconds the margin will remain more or less same only thing is that the project flow will more in the uh Glasttech units like in 13:05 13 minutes, 5 seconds Taloja because the uh many at many places the Glasttech brand is specified or registered. So we are getting that uh 13:14 13 minutes, 14 seconds such kind of response. So the orders are coming in the name of Glasttech. 13:23 13 minutes, 23 seconds So one last question from my side. So I just wanted to know like once the acquired unit has been let's say stabilized so how meaningful we can 13:31 13 minutes, 31 seconds become to consolidated revenue and a bita over the time and what what time frame we can uh uh consolidate revenue 13:40 13 minutes, 40 seconds and aida like we can contribute meaningfully so so you want to say next year 13:49 13 minutes, 49 seconds okay so are we expecting any number or consolidated number revenue any beta for the next year guidelines. 14:00 14 minutes Yeah. Yeah. 14:02 14 minutes, 2 seconds So that we can give it only in the first quarter of the after the first quarter. Okay. The like 27. 14:10 14 minutes, 10 seconds Yes. 14:12 14 minutes, 12 seconds Because we are working we are realigning our targets. 14:17 14 minutes, 17 seconds Mhm. Got him. Got okay sir. Thank you. Thank you. That's all from my side. 14:25 14 minutes, 25 seconds Thank you. 14:27 14 minutes, 27 seconds Ladies and gentlemen, if you wish to ask a question, you may press star and one. 14:34 14 minutes, 34 seconds And next question come from the line of Rasha from Sha Venture. Please go ahead. Uh yeah. Hi, good afternoon. 14:43 14 minutes, 43 seconds Good afternoon. Hello. 14:44 14 minutes, 44 seconds Yeah. Yeah. Good afternoon, sir. Uh uh can you tell me uh from a uh medium-term perspective how do you see 14:52 14 minutes, 52 seconds demand environment for AR architectural glass evolving uh across residential commercial infrastructure and data 15:00 15 minutes center segments and uh which of the segments are likely to drive incremental growth over the next two to three years. 15:08 15 minutes, 8 seconds Uh see uh particularly if we you know see the real estate infrastructure and data center every day in the newspaper 15:16 15 minutes, 16 seconds we read that uh this data center or this company is setting this data center this real estate project has been launched by this company this infrastructure 15:24 15 minutes, 24 seconds investment has been declared by central government or the state government. So you know u in line with the thought of 15:31 15 minutes, 31 seconds the Vixit Bharat 2047 uh everywhere particularly metro city to 15:38 15 minutes, 38 seconds two tire city to every government infrastructure projects or uh every you know prominent municipal corporations of 15:47 15 minutes, 47 seconds India's uh India are now in you know mode of uh 15:53 15 minutes, 53 seconds uh growth and uh real sector is uh growing very fast particularly in the metro city on the luxury uh you know 16:02 16 minutes, 2 seconds test higher high-rise buildings bigger flats and everything that is contributing very 16:10 16 minutes, 10 seconds high on the our product so even you know um what we are you know 16:18 16 minutes, 18 seconds calculating uh while you know acquisitions or increasing the capacity that if India maintains 7.5 or 7% GDP 16:27 16 minutes, 27 seconds We will have a growth in our sector and personally then again the 16:35 16 minutes, 35 seconds hospitality hotels hospitals health education number of universities are coming in India. 16:48 16 minutes, 48 seconds Okay. 16:50 16 minutes, 50 seconds And uh sir can you also uh speak on like uh uh international revenues uh continue 16:57 16 minutes, 57 seconds to form a significant portion of the business also. So how do you see the India versus overseas revenue mix 17:05 17 minutes, 5 seconds evolving over time and what would be a comfortable long-term balance from a risk and margin standpoint as well? See 17:13 17 minutes, 13 seconds the uh particularly from the last you know uh six to seven quarters the contribution from UAE is very high which 17:22 17 minutes, 22 seconds gradually we reduce and with this our two acquisitions of Taloja and Erod and also future acquisitions I think uh 17:31 17 minutes, 31 seconds going forward in next two years mostly it will be equal both the side you know India will be the same and UA will be 17:38 17 minutes, 38 seconds also same or there will be 55 45 or or the reverse 45 555 on turnover. 17:47 17 minutes, 47 seconds Okay. 17:48 17 minutes, 48 seconds And uh uh also I I want to know about the raw material costs uh like uh uh raw 17:55 17 minutes, 55 seconds material costs are key inputs, right? So how does your uh pricing and pass through mechanism work in practice and 18:03 18 minutes, 3 seconds uh how do you balance competitiveness with uh margin protection during periods of volatility? 18:10 18 minutes, 10 seconds as such you know there is a not much volatility because uh the raw material is more or less uh available in India 18:17 18 minutes, 17 seconds and secondly now we have a you know for the major raw material which is a 55% of our raw material is a glass for that we 18:25 18 minutes, 25 seconds have a now you know sole supply agreement with the sang goin so uh they are the largest in India for the glass 18:32 18 minutes, 32 seconds manufacturer and they are supplying us all the clear glass and then coated glass on time and before time and also 18:42 18 minutes, 42 seconds being a you know market leader Senobin they also you know vigilant on the import quantum what is coming and what is not coming so their pricing are more 18:51 18 minutes, 51 seconds or less you know uh open on looking to the demand and supply and the import quantum or other players uh supply so uh 18:59 18 minutes, 59 seconds the one of the reason for you know agreement with the s goodin was the continue and reasonable price raw 19:07 19 minutes, 7 seconds material supply to us and some of the you know very 19:15 19 minutes, 15 seconds unorganized competitors uh sometime reduce the price but that doesn't you know impact much more uh on us and we 19:23 19 minutes, 23 seconds are in a very niche market. So you know uh very organized developers big projects where uh you know the quality 19:32 19 minutes, 32 seconds is required timely delivery is required then the performance of the glass itself is on different level. So there much 19:39 19 minutes, 39 seconds more competitions is not there particularly on the differences of the pricing of the raw material. 19:48 19 minutes, 48 seconds Okay, that's great. And uh uh can you uh walk us through the current capacity 19:55 19 minutes, 55 seconds utilization across key product lines and geographies and uh also I want to know about like uh how you identify where the 20:04 20 minutes, 4 seconds where is the biggest headroom for growth exist without significant apex. 20:10 20 minutes, 10 seconds Yeah. So the uh current capacity are in our uh product wise and the uh the unit wise are different. So as of now we are 20:18 20 minutes, 18 seconds uh almost at 90% of utilation of our lamination line in Silvasa whereas the loia is still under utilized at 10%. And 20:27 20 minutes, 27 seconds our IG glass is around 28% in Silvasa and the Taloa it is still on the 16%. 20:34 20 minutes, 34 seconds Overall our toughening capacity utilization is more than uh 60% in 20:39 20 minutes, 39 seconds Silvasa and around 30% in Taloja and Ero whereas our uh capacity utilization in 20:48 20 minutes, 48 seconds UAE almost 90% uh our the IG products which is the wholesaling product and the lamination product. So uh 90% 20:56 20 minutes, 56 seconds utilization in capacity in our uh UAE segment uh in IG segment. 21:06 21 minutes, 6 seconds Okay. Okay. Okay. So yes uh thank you so much sir uh for giving us the insight about the business and yes uh that's all from my side. Thank you. 21:17 21 minutes, 17 seconds Thank you. 21:19 21 minutes, 19 seconds Thank you. Our next question comes from the line of Rohit Rahwani from Budget Global Securities. Please go ahead. 21:28 21 minutes, 28 seconds Yes, thank you so much for giving me the opportunity. Uh in the previous on call the management has told me that uh you 21:35 21 minutes, 35 seconds are working in one of the acquisitions which was under due diligence states. So any update regarding that whether we are 21:42 21 minutes, 42 seconds about to complete that acquisition in the near future? Uh so we we have you know uh one plant the due digilance is 21:49 21 minutes, 49 seconds over uh certain legal process is also on so on on uh you know certain valuations point and certain legal point the deal 21:58 21 minutes, 58 seconds is on you know uh process so it's in the discussion maybe we can get a result in month's time. 22:09 22 minutes, 9 seconds So anything with respect to capacity or revenue potential there if you could share or it is too early to ask right now. 22:18 22 minutes, 18 seconds That is working on but uh you know uh this uh year more or less consolidated 22:25 22 minutes, 25 seconds we are going to touch 400 or little bit plus and we are looking minimum 25% growth next year minimum. 22:37 22 minutes, 37 seconds Okay. Okay. Understood. And uh I have one more question on more growth. 22:44 22 minutes, 44 seconds So your voice was not clear uh in the last with the one one more acquisitions I think uh the growth will be about 25%. 22:53 22 minutes, 53 seconds But if the acquisition is not coming though there will be minimum 25% growth. 23:00 23 minutes Okay. Okay. Understood. Understood. So I had one more question. on the debt side. 23:06 23 minutes, 6 seconds Currently we have total you know borrowings including the loose liabilities of around 220 230 kores 23:13 23 minutes, 13 seconds which include certain debt from the promoter group companies. So any timelines with respect to repayment of 23:20 23 minutes, 20 seconds these borrowings uh maybe in next one or two years. No. So see we in presently in the December quarter we had already 23:28 23 minutes, 28 seconds repaid some of the promoter loans of around 28 crores from the fund what we had raised from an equity and the warrants. 23:37 23 minutes, 37 seconds So now the borrowing in sigel uh glass India per se it is only in regards to a banking borrowing. 23:47 23 minutes, 47 seconds Okay that's from my side. Thank you so much and all the best. 23:51 23 minutes, 51 seconds So long-term uh the uh loan is already under the repayment through the schedule payments 23:58 23 minutes, 58 seconds uh and the cash rates limits are uh revolving as for the business the debt equity has been changed 24:05 24 minutes, 5 seconds and because of the infusion of this funds of around 77 crores in the last quarter of this year the debt equity 24:12 24 minutes, 12 seconds ratio has been completely changed. So now our present debt equity is around less than 0.05 against our uh previous uh uh debt equity. 24:25 24 minutes, 25 seconds Okay. Okay. 24:27 24 minutes, 27 seconds Thank you so much sir. All the very best on Thank you. 24:34 24 minutes, 34 seconds Our next question come from the line of Harshid Singha from Robo Capita. Please go ahead. Hello. 24:43 24 minutes, 43 seconds Yes. 24:44 24 minutes, 44 seconds Yeah. Uh thank you for the opportunity sir. Uh I just wanted to ask if you could give a bifocation of margin 24:50 24 minutes, 50 seconds according to the product according to the product. Yeah like product segment. 24:58 24 minutes, 58 seconds The product segment the IG will be the ladies and gentlemen management line has 25:08 25 minutes, 8 seconds been disconnected. Please stay connected. I'll reconnect the line. Thank you. 25:29 25 minutes, 29 seconds Heat. Heat. 25:35 25 minutes, 35 seconds Yeah, 25:57 25 minutes, 57 seconds baby. 26:09 26 minutes, 9 seconds Ladies and gentlemen, the management line has been connected again. Thank you and over to you sir. 26:18 26 minutes, 18 seconds So you may please proceed. Yeah. Hello. Yes sir. 26:25 26 minutes, 25 seconds So as I said that the IG glass will be having a more margin as compared to the other toughened glass because it is further validation in the form of glass. 26:36 26 minutes, 36 seconds Okay. And so with the new high value products coming up are they expected to be of higher margin or around similar line? 26:43 26 minutes, 43 seconds No. So the uh the new product like fire rated and the bulletproof will definitely give a higher margin. 26:50 26 minutes, 50 seconds Is there like any number we can place on this like? 26:54 26 minutes, 54 seconds No, as of now we are not able to give any uh guidance on that because the fire rate will start only in the first quarter of the next year. So then the 27:02 27 minutes, 2 seconds strategy and the marketing and the market will be based on that we will give that. 27:12 27 minutes, 12 seconds uh also saw around margin lines uh another uh like have like around 35% margin 30 27:20 27 minutes, 20 seconds 45% margin like uh do we think we can reach around there or is there any reason why we are making significantly 27:28 27 minutes, 28 seconds higher margin I think we have guided for 18% in the last call so that's what we are we are in the IITA 27:35 27 minutes, 35 seconds in the range of 17 to 18% and that will be improved further as and when our capacity utilization increases is 27:42 27 minutes, 42 seconds especially in our the new acquired units like and road. So there is a scope of increment in the IITA margin of around 1% further. 27:55 27 minutes, 55 seconds Okay. So we can improve like around a few percentage points. Correct. Okay. 28:03 28 minutes, 3 seconds Uh okay. So that'll be also my side. Thank you for the opportunity. Thank you. 28:13 28 minutes, 13 seconds Thank you ladies and gentlemen. If you wish to ask a question may press star and one. 28:24 28 minutes, 24 seconds Next question come from the line of Omar Khan Sharma from Vanchu Venture. Please go ahead. 28:30 28 minutes, 30 seconds Yeah. Hi chief. Thank you for the opportunity. Uh couple of quick questions. Uh could you just uh just starting with uh one book uh bookkeeping 28:38 28 minutes, 38 seconds question. The glass tech consolidation happens at the standalone level. Is that correct? 28:45 28 minutes, 45 seconds No the standalone means the glass tech acquisition is in s glass India limited specially and overall the consolidated 28:52 28 minutes, 52 seconds result includes the all the units of India as well as the U unit. 28:56 28 minutes, 56 seconds Perfect. Perfect. So, so just one uh one understanding uh you know uh we we've 29:04 29 minutes, 4 seconds been talking about the India business we have enough capacity we have acquired capacity as well in the India business 29:11 29 minutes, 11 seconds but somehow we not seeing the numbers getting translated the growth is not stemming in and uh while the growth is 29:18 29 minutes, 18 seconds uh you know has been a miss the margins have been have further been eroded in the domestic business so that's why because the plastic units 29:27 29 minutes, 27 seconds It's like colloja and erod has been acquired only in the month of June and July. So the first six has been passed. 29:34 29 minutes, 34 seconds So we are still under the consolidation stage of the our strategies and the revenue and the overhauling of the 29:40 29 minutes, 40 seconds existing plans and realigning the uh product process and the manpower and the material uh alignment and the machines. 29:51 29 minutes, 51 seconds So all the re-engineering uh things are growing uh at the current level and so we are expecting that from the next year 29:59 29 minutes, 59 seconds onwards you will be able to see the growth in the numbers as well as as the margins because as of now there are some 30:07 30 minutes, 7 seconds level losses which are captured under this quarters. 30:12 30 minutes, 12 seconds Okay. So if I may ask you this question, what would our margins be? X of the glass tech within the India business. 30:21 30 minutes, 21 seconds Sorry, X of glass tech what the margins are in the India business and how much the India business X of glass tech we have growth 30:30 30 minutes, 30 seconds as of now the margins are level at just 2% 3% because the capacity utilization is less than 20%. 30:38 30 minutes, 38 seconds That is excluding plastic you're talking right? 30:41 30 minutes, 41 seconds Yeah. Yeah. So they have potential to generate more than 150 crores of revenue and uh I emit will be around in the range of 15%. 30:53 30 minutes, 53 seconds Got it. And and can you just talk qualitatively how are we see seeing the scale up and what exactly are we doing to drive this growth uh you know cuz uh 31:02 31 minutes, 2 seconds going from 20 cr number to and almost negligible margins to 150 cr which you are guiding for that's a huge jump 31:10 31 minutes, 10 seconds you're talking about. So what exactly needs to happen to drive this growth actually to drive this growth is the 31:18 31 minutes, 18 seconds market opportunity is already there. So there is a growing demand for the product and uh just after realigning our 31:26 31 minutes, 26 seconds internal systems and process we'll be definitely able to capture that growth in the market the real estate segment or 31:33 31 minutes, 33 seconds construction boom or the other development as in the form of like railway infra 31:41 31 minutes, 41 seconds everything is coming in a big way in India for next at least 3 years we'll be able to capture that growth 31:50 31 minutes, 50 seconds Okay. Okay. And uh secondly, we've been talking about this railway grade railway side uh pitching to the one day and all 32:00 32 minutes of that. Could you talk any update on that track? 32:03 32 minutes, 3 seconds So yes, our products are been approved and we had already started supply but eventually as of now the contribution is 32:11 32 minutes, 11 seconds very less but definitely uh in the coming quarters it will be uh gradually it will increase further. Yeah, it has been a continuous process like bidding 32:19 32 minutes, 19 seconds in the every time uh in the process and uh getting more and more uh orders and the uh acceptance of the product in the system. 32:28 32 minutes, 28 seconds Okay. Got this is a tender based business right? Yes. Yes. 32:33 32 minutes, 33 seconds So who who are competing in this se segment? 32:38 32 minutes, 38 seconds There are unorganized players basically who are competing in this segment. There is no organized into this segment. 32:46 32 minutes, 46 seconds Got it. Got it. And uh thirdly, could you just talk a little bit about the UAE business? How are you seeing the scale 32:53 32 minutes, 53 seconds up there? And uh since I think earlier you mentioned that we have already hit a 90% utilization in UAE 33:00 33 minutes uh what is the next plan of action over there and also parallelly the uh sustainable margins cuz if I were to 33:07 33 minutes, 7 seconds look at the margins while YI has been a huge jump uh there has been a fair bit of moderation Q on Q level just on the 33:15 33 minutes, 15 seconds UAE business. So if you could just throw some color around that UA business as I said that the our IG 33:23 33 minutes, 23 seconds product is at 90%. So we are adding a capacity in the form of tempering line. 33:28 33 minutes, 28 seconds So that is going to commence uh in the first uh quarter of the next year. It has already been uh on the way for the 33:36 33 minutes, 36 seconds installation. So that will add up our capacity in toughening and once the toughening capacity is added the IG line we had already two IG lines. the second 33:44 33 minutes, 44 seconds IG line will also start running well and definitely that will give around the 20 to uh sorry 20 to 30 uh million uh business next year further. 33:58 33 minutes, 58 seconds Okay, sure. Thank you. Uh that's that's it from my side. Thank you. 34:08 34 minutes, 8 seconds Thank you ladies and gentlemen. Anyone who wishes to ask a question may press star and one on your touchstone telephone. 34:18 34 minutes, 18 seconds Our next question come from the line of Rahil from Sapphire Capital. Please go ahead. 34:25 34 minutes, 25 seconds Sir, can you just give me a sense on what our consolidated margins can be next year with all the new acquisitions capacities coming in? 34:34 34 minutes, 34 seconds So, we are targeting a bit of around 18%. Okay. 34:40 34 minutes, 40 seconds Uh and so when you said key the uh 25% growth can be exceeded with the new 34:47 34 minutes, 47 seconds acquisition. So the margins will still be targeted at 18% though or that will also increase. 34:53 34 minutes, 53 seconds No it might increase by half% but uh as of now we are on a conservative side 18% definitely will be achievable. 35:01 35 minutes, 1 second And this new acquisition if in case which comes in is targeted for which uh product line? The product line will be 35:08 35 minutes, 8 seconds the similar line of business. So we are not uh diversifying. 35:12 35 minutes, 12 seconds Okay. It's not okay. Okay. It will be all the same uh reach will be expanded kind of thing. 35:19 35 minutes, 19 seconds Mhm. And uh I'm not sure if I have the percentage of exports. I I think I 35:26 35 minutes, 26 seconds missed the percentage of export revenue of our total. 35:30 35 minutes, 30 seconds So export as such we are doing from uh UV uh unit. 35:36 35 minutes, 36 seconds Mhm. to nearly around as of now it is not contributing more than 10%. Because uh UAE itself is consuming uh the entire 35:46 35 minutes, 46 seconds production so almost 90% is within UEIE and the uh all the seven emas 35:53 35 minutes, 53 seconds but from that the export in the nearby GCC country and to some extent uh other countries. 36:02 36 minutes, 2 seconds Okay. And uh for FI26 which is this year are we confident that closing uh you said 400 crores top line but then a bit 36:10 36 minutes, 10 seconds margin 15% can be sustained or will is there is there room for a slight more 36:20 36 minutes, 20 seconds you know improvement in overall yeah margins will improve to further by around one we are expecting 16 16 and a 36:27 36 minutes, 27 seconds half% consolidated ITA margin on a turnover of around 400 Quarter four is really uh strongest 36:36 36 minutes, 36 seconds generally quarter four is strongest strongest. Okay. Yeah. And just one clarification you mentioned uh 36:44 36 minutes, 44 seconds there's potential of 150 crores of business uh in in in the at uh I believe 36:51 36 minutes, 51 seconds uh with margins of 15% that is Indian business can reach that right at at optimum utilization. 36:59 36 minutes, 59 seconds Yes. Yes. 37:00 37 minutes Right. Okay. Uh, okay. Got it. Thank you so much for that. Thank you. 37:08 37 minutes, 8 seconds Ladies and gentlemen, anyone who wishes to ask a question must press star and one. 37:23 37 minutes, 23 seconds Reminder, anyone who wishes to ask a question. 37:33 37 minutes, 33 seconds As there are no further question from the participant, I would like to hand the conference over to Mr. Ganesh for the closing comments. Thank you and over to you sir. 37:45 37 minutes, 45 seconds Thank you everyone for joining the conference call of Sil Glass Limited. If you have any further queries you can write to us at research direct.com. 37:55 37 minutes, 55 seconds Once again, thank you everyone for joining the conference.