Silkflex Polymers Ltd — Q4 FY26

Silkflex Polymers (India) Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=mbYQXxdAOQg Published: 2 weeks ago

0:01 1 second Ladies and gentlemen, good day and welcome to Q4 FI26 earnings conference call of Selflex Polymers India Limited 0:10 10 seconds hosted by XB4 Advisory. As a reminder, all participant lines will be in the listen only mode and there will be an 0:18 18 seconds opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an 0:25 25 seconds operator by pressing start and zero on your touchstone phone. Please note that this conference is being recorded 0:36 36 seconds and now I'll hand the conference over to Mr. Dia from XB for advisory. Thank you and over to you. 0:46 46 seconds Thank you. Uh good evening everyone and to the queue for FY26 earning call of Simplex Polymers India Limited. Today on 0:53 53 seconds this call we have Mr. Tushar Lit Kumar Sani, chairman and messaging director and Mrs. 0:59 59 seconds Urmi Raj Ma oldtime director and CFO of Silflex Polymers India Limited. This conference call may contain formal look at statements about the company which 1:07 1 minute, 7 seconds are based on beliefs, opinions and expectations. As of today, actual results may differ. The statements are not guarantees of future performance and 1:15 1 minute, 15 seconds involve risk and uncertaintity. With this I hand over the call to Mr. Tushar Sangri for his opening remarks. Over to you sir. 1:25 1 minute, 25 seconds Thank you Dya. 1:27 1 minute, 27 seconds Uh hello uh good afternoon and a very warm welcome to all our investors, 1:33 1 minute, 33 seconds analysts and stakeholders joining us for Simpact Polymers India Limited Q4 and 1:41 1 minute, 41 seconds FY2026 earning conference call. 1:46 1 minute, 46 seconds I am Tusar Sanvi, chairman and managing director and I sincerely thank you for your continued trust and engagement with the company. 1:56 1 minute, 56 seconds We hope you have had the opportunity to review our financial results and the investor presentation both of which are 2:04 2 minutes, 4 seconds available on the stock exchanges and also on our website. 2:10 2 minutes, 10 seconds Let me begin by highlighting that FI2026 has been a defining year for marked by 2:19 2 minutes, 19 seconds operational milestone. the commencement of full-scale commercial production at our Vograph facility. The transition 2:27 2 minutes, 27 seconds from a trading lead model to a manufacturing driven company represent the realization of a long-term vision we have pursued since inception. 2:38 2 minutes, 38 seconds Our Vodra plant facility is fully operational and marks a significant transformation for the company. We tra 2:47 2 minutes, 47 seconds over 10 acres land with 72,000 square ft² automated setup and the plant has 2:53 2 minutes, 53 seconds been installed capacity of 500 metric t per month and operates on a boiler lab 3:01 3 minutes, 1 second zero carbon and zero discharge model aligned with our sustainability which is the first philosophy 3:09 3 minutes, 9 seconds under our technology transfer agreement with Malaysia we have commenced in-house manufacturing ing of file binder and 3:19 3 minutes, 19 seconds table glue which this backward integration is expected to improve EDR 3:25 3 minutes, 25 seconds margin by approximately 20 to 25% reduce our import independ dependency and enhance supply reliability. 3:37 3 minutes, 37 seconds Importantly, we retain full commercial rights to sell these binders products to third party industries including paints, 3:46 3 minutes, 46 seconds coating and industrial applications, thereby opening up a meaningful new revenue stream beyond our core textile segment in coming times as well. 3:57 3 minutes, 57 seconds Capacity utilization stood at present approximately 60% in the first year of operation and scaling these remains a key priority for FY2027. 4:11 4 minutes, 11 seconds Additionally, we are in the process of adding new machinery over the next couple of months 4:18 4 minutes, 18 seconds through our internal resources which will enable us to expand our product portfolio and enter adjacent categories as well. 4:28 4 minutes, 28 seconds Now coming to the border industry environment from a demand standpoint the near-term 4:36 4 minutes, 36 seconds export environment remains somewhat cautioned due to global macro uncertaintities and evolving state dynamics. 4:45 4 minutes, 45 seconds On the supply side input costs have remained volatile. To put this in perspective, raw materials saw a sharp 4:53 4 minutes, 53 seconds increasing during the year largely driven by global supply disruptions and geopolitical factors. 5:01 5 minutes, 1 second However, our proactive inventory strategy has helped us secure raw materials at favorable blended costs 5:09 5 minutes, 9 seconds which should provide margin stability over the near term. 5:15 5 minutes, 15 seconds With competing manufacturing hubs facing challenges such as rising cost, compliance pressures and supply side 5:22 5 minutes, 22 seconds disruptions, global brands are increasingly diversifying their sourcing base towards the India. 5:29 5 minutes, 29 seconds This is leading to capacity expansion across tactile processes which in turn supports long-term demand for our products. 5:38 5 minutes, 38 seconds Looking ahead to FYI 2027, our priorities remain clear. 5:44 5 minutes, 44 seconds scaling manufacturing utilization, increasing the contribution of manufacturing towards 50% of our revenue 5:53 5 minutes, 53 seconds mix, expanding binder sales into nontextual industries as well and deepening our engagement with global brands. 6:03 6 minutes, 3 seconds by 2030. Our vision is to establish Phillex as a fully integrated solvent free zero discharge 6:11 6 minutes, 11 seconds manufacturing company among the most advanced and sustainable player in India's tactile and quoting solution space. 6:22 6 minutes, 22 seconds The foundation is already been laid and the focus is now firmly on execution. 6:28 6 minutes, 28 seconds We remain deeply grateful to our investors, employees, customers and partners for their continued trust and support. 6:38 6 minutes, 38 seconds With that, I hand over the call to Mrs. Um Mata for a financial overview. 6:48 6 minutes, 48 seconds Thank you, sir. Good afternoon to everyone on the call and thank you for joining us. [clears throat and cough] 6:55 6 minutes, 55 seconds I'm this is Mata, who director and CFO at Simplex Polymers India Limited. And I will briefly walk you through the financial performance for the quarter 7:03 7 minutes, 3 seconds and 9 months ended. The quarterly financial performance for the fourth quarter of the financial year 26. We see that the revenue from operations stood 7:12 7 minutes, 12 seconds at 39.1 crores registering a growth of 199.8% over the fourth quarter of the financial year. 7:23 7 minutes, 23 seconds The EITA increased by 2 224.4% to 9 crores driven by operating leverage 7:30 7 minutes, 30 seconds and cost control. EITA margin improved by 180 basis points reaching 23.1% 7:39 7 minutes, 39 seconds from 21.3% in the same period last year. 7:44 7 minutes, 44 seconds PAT grew by 234.1% to 4.7 crores with PAT margin expanding 7:51 7 minutes, 51 seconds from 10.7% to 11.9% with an increase of 120 basis points. 8:03 8 minutes, 3 seconds Now considering the full year of the financial year 26 performance we see that the annual revenue grew by 37.7% 8:13 8 minutes, 13 seconds to 110.3 crores which is up from 80 80 crores in the financial year. The EITA for the 8:21 8 minutes, 21 seconds year stood at 21.7 crores up 87.3% yearon year. The PAT VC has increased by 8:31 8 minutes, 31 seconds 73.6% to 12.2 crores. 8:36 8 minutes, 36 seconds Our EITA margin expanded to 520 basis points and the pack margin improved by 230 basis points. 8:45 8 minutes, 45 seconds Let me now briefly touch upon our revenue mix for the financial year 26. 8:51 8 minutes, 51 seconds In the first year of manufacturing, the distribution business accounted for 75.9% of our revenue while manufacturing 9:00 9 minutes contributed to 24.1% with a clear pathway for scaling up going forward. If we look into the 9:07 9 minutes, 7 seconds segment wide revenue of our distribution business, we see it as follows. The textile ink segment remained dominant, contributing 94.5% to our total revenue. 9:19 9 minutes, 19 seconds The wood coating segment grew smaller at 5.5% steadily gaining traction and remains a high potential vertically. Our 9:28 9 minutes, 28 seconds textile ink segment grew by 35.7% from 76.7 cr to 104.1 crores. 9:38 9 minutes, 38 seconds Our wood coating segment grew by 85.1% from 3.3 crores to 6.1 crores. 9:46 9 minutes, 46 seconds We can now open the floor to question and answer. Thank you. 9:51 9 minutes, 51 seconds Thank you very much. We'll now begin with the question and answer session. 9:55 9 minutes, 55 seconds Anyone who wishes to ask a question may press R and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press R and two. 10:06 10 minutes, 6 seconds Participants are requested to use handsets while asking a question. 10:11 10 minutes, 11 seconds Ladies and gentlemen, we will wait for a moment while the question Q assembles. 10:20 10 minutes, 20 seconds The first question is from Rhino Faraj from S. Please go ahead. 10:27 10 minutes, 27 seconds Uh hello, good afternoon. Very congratulations for a very good set of numbers. Thank you. 10:35 10 minutes, 35 seconds Uh my question I have a few questions. 10:38 10 minutes, 38 seconds Um first one would be I mean what are the unit economics of uh you know the manufacturing segment specifically? 10:46 10 minutes, 46 seconds Sorry to interrupt before you go ahead with your question. Your audience is not clear. Can you speak through the answer please? Yeah. Uh can you hear me now? 10:54 10 minutes, 54 seconds Little better. Yes. 10:57 10 minutes, 57 seconds Okay. U my was what are the unit economics of the manufacturing segment specifically for glue and binder 11:04 11 minutes, 4 seconds products uh which include the margin differential versus the trading business. 11:12 11 minutes, 12 seconds Okay. Um so basically when you talk about uh unit economics uh we consider 11:19 11 minutes, 19 seconds key uh you know the rate is approx 150 160 and uh the gross margin is approx 30 35%. 11:29 11 minutes, 29 seconds uh when we compare specifically for uh you know comparison with manufacturing and trading business we can see that the 11:36 11 minutes, 36 seconds EITA margins are around 20 25% for the manufacturing segment and uh for our trading business it is 12 to 15%. 11:46 11 minutes, 46 seconds Okay. Okay. Uh my next question is uh uh I think you mentioned I think in the 11:54 11 minutes, 54 seconds call that your capacity utilization is at 60%. For the plan uh so when you when do you expect the 12:02 12 minutes, 2 seconds complete utilization of it by what what's the timeline for that? 12:07 12 minutes, 7 seconds So uh we are expecting to reach full capacity utilization uh you know by the end of financial year 27. 12:15 12 minutes, 15 seconds uh it's it's the installed capacity right now as uh mentioned earlier and enough duty also is 500 tons. So given 12:24 12 minutes, 24 seconds the rate at which we are going it seems uh and until year 27 should be our goal. 12:31 12 minutes, 31 seconds Okay. And uh at what utilization level do you expect these margins to stabilize and you know what is the steady state margin range? 12:42 12 minutes, 42 seconds Um so how I would put this is Mr. 12:56 12 minutes, 56 seconds It will be very minute here and there because mostly 50% next% 13:05 13 minutes, 5 seconds margin this is what we can expect as the steady state. Huh? Mostly 13:14 13 minutes, 14 seconds maximum this is you can consider as the stable margin but ma'am you know even after the shift 13:22 13 minutes, 22 seconds towards manufacturing up gross margins have not expanded as significantly correct 13:29 13 minutes, 29 seconds uh so is this due to some uh ramp upies or pricing or some raw material issues which you are facing what what would be 13:36 13 minutes, 36 seconds the highlight for this so um basically capacity full capacity 13:48 13 minutes, 48 seconds all the fixed costs have already been in the setting up of the factory right so now uh the the absorption of the cost is 13:56 13 minutes, 56 seconds only at 60% factory over time financial year 14:04 14 minutes, 4 seconds 100% so by that time we are expecting absorption better 14:18 14 minutes, 18 seconds expansion over the period of time starting ramp up like you mentioned ramp up. 14:29 14 minutes, 29 seconds So that is why so approximately by how many basis points can we expect uh more expansion say at you know the full capacity and 14:37 14 minutes, 37 seconds everything that you're saying uh could you repeat the question again please 14:44 14 minutes, 44 seconds I'm saying so how much margin expansion do you expect like in how many basis points do you expect the expansion to happen at like say full capacity and 14:53 14 minutes, 53 seconds with your ramp up uh you know efficiency stabilizing and Do you think so? 15:01 15 minutes, 1 second 2 3% increase overall 2% expansion. 15:11 15 minutes, 11 seconds Okay. Okay ma'am. Thank you so much and congratulations once again. Thank you. Thank you so much Mr. Far. 15:17 15 minutes, 17 seconds Anytime. 15:20 15 minutes, 20 seconds Thank you. Next question is from land of Nachit Khal from Jaggeraut Securities. Please go ahead. 15:27 15 minutes, 27 seconds Yeah. Hi, thank you so much for the opportunity and congratulations on the state result. The next question is on 15:36 15 minutes, 36 seconds majorly on the voice is breaking terribly. 15:40 15 minutes, 40 seconds Uh better now slightly. It's still breaking a little bit. 15:46 15 minutes, 46 seconds Okay, I'll just try to feel better. So given your reliance on Silk Flex Malaysia for sourcing technology and 15:54 15 minutes, 54 seconds even the product portfolio, any geopolitical disruptions or supply issues uh are we facing right now and if 16:03 16 minutes, 3 seconds yes, what is the turnaround or how do we manage that? 16:09 16 minutes, 9 seconds Hi this is Nik. This is Tushar. uh pricing is a basically a primary factor uh we uh watch very closely the US 16:18 16 minutes, 18 seconds dollar exchange rate it adds a layer of currency risk to our import costs. Uh beyond pricing management we are actively in discussion with Phil 16:26 16 minutes, 26 seconds Malaysia team also for a technology transfer or for manufacturing additional ink and as well as the wood coating products in India. uh once that is 16:35 16 minutes, 35 seconds confirmed uh we will uh uh communicate in details also as well as uh significantly to reduce the our import 16:43 16 minutes, 43 seconds uh deficiency uh dependency and uh deep our uh in-house manufacturing capabilities we are having our R&D and 16:51 16 minutes, 51 seconds we are also working for the uh different uh v uh various of binders applications 16:58 16 minutes, 58 seconds for constructions paints also Okay. 17:06 17 minutes, 6 seconds and uh like management strategy product portfolio like revenue mixing, 17:14 17 minutes, 14 seconds wood coating proportion 17:24 17 minutes, 24 seconds 50% as of now 17:32 17 minutes, 32 seconds 75% 25% distribution of business 17:48 17 minutes, 48 seconds growth. 17:56 17 minutes, 56 seconds So expecting the overall revenue grow at the similar rate uh which we have demonstrated in this year uh because we 18:05 18 minutes, 5 seconds have given the manufacturing skill and continue the expansion of wood coating and texting uh together. Sure. Yeah. 18:14 18 minutes, 14 seconds Okay. 18:15 18 minutes, 15 seconds or uh wooden steps. 18:25 18 minutes, 25 seconds Huh. 18:27 18 minutes, 27 seconds Already 3 months before we have been opening a branch at which is a very good 18:35 18 minutes, 35 seconds manufacturing hub for the furniture. So 18:43 18 minutes, 43 seconds market awareness looking to the global situation as well as the pressure from the government end. 18:52 18 minutes, 52 seconds So people are looking for solvent uh free uh solutions and where we are 19:00 19 minutes getting very good business as a domestic player. Uh no doubt uh so far as our JPU 19:07 19 minutes, 7 seconds office which are dealing with the uh export manufacturers we have been already doing well there but now we are hoping for the domestic market as well 19:16 19 minutes, 16 seconds as we are getting very good response uh and reception from the customers. So we are that is why we are looking for wood 19:24 19 minutes, 24 seconds coating products to be grow very rapidly. 19:29 19 minutes, 29 seconds Okay. So okay yeah that's all from my side. So thank you so much. Thank you. 19:38 19 minutes, 38 seconds Next question is from the line of Har Sha from SH investment. Please go ahead. Hello. 19:46 19 minutes, 46 seconds Yeah. Yeah. Am I audible? Yeah. 19:50 19 minutes, 50 seconds Yeah. Uh sir actually I want to understand uh are we planning to increase our product portfolio beyond 19:56 19 minutes, 56 seconds ink, wood, uh coatings and uh textile and uh and if so then how will it impact our margins? 20:06 20 minutes, 6 seconds See we are uh right now increasing the uh uh manufacturing part so which will 20:13 20 minutes, 13 seconds be basically on the tactile side. So tactic tactile uh what we are doing trading right now that will be also grow 20:21 20 minutes, 21 seconds simultaneously we are uh doing the full coating business and which we are hopefully as I have mentioned to navigate also that the segment will be 20:31 20 minutes, 31 seconds doing much better uh than the past previous year so that will be also growing rapidly. So we as a manufacturer 20:40 20 minutes, 40 seconds and trading we can say it is a contribution of 50 50% we can achieve it like that which right now is 80% 20%. 20:48 20 minutes, 48 seconds Which will be it is accordingly 50 50%. 20:53 20 minutes, 53 seconds So, so what will be the impact on the margin like then sorry can you repeat what will be the what will be the impact 21:01 21 minutes, 1 second on the margin side like will it uh expand and if it expands and not by what basis points see the as I have been already mentioned 21:10 21 minutes, 10 seconds the basis uh basically when we are doing the manufacturing naturally the profit margin is uh little bit higher in the uh 21:18 21 minutes, 18 seconds uh manufacturing segment so overall profit margin uh you can consider it 2 to 3% will be higher in the coming uh uh year. 21:28 21 minutes, 28 seconds Okay. So there will be a spread of 2 to 3% uh after we start the manufacturing part. Got it. Uh sir uh uh another 21:35 21 minutes, 35 seconds another point is uh are we actively pursuing non-extile customers for its binder and glue products. 21:42 21 minutes, 42 seconds Yeah, right now we have been doing for our R&D. So we have been doing lot of trials and errors for with the nontel 21:50 21 minutes, 50 seconds people also. So hopefully we will coming soon uh within couple of months we will intimate to the you once again we will be get through. 22:01 22 minutes, 1 second Sure. Got it. Uh lastly sir I want to ask that once we reach our optimal utilization of our current facility what 22:09 22 minutes, 9 seconds would be the next phase of growth uh in the uh in the whole uh uh scenario like 22:16 22 minutes, 16 seconds how will we like what would be the next phase of growth after we achieving the optimal utilization. We after achieving the optimum utilization uh the capex 22:25 22 minutes, 25 seconds what we have been used is almost uh already ready for that and out of that we are right now utilizing only 20% 22:31 22 minutes, 31 seconds capacity after installing the system of the 500 ton capacity. We have further more scope of uh putting up the vessels 22:41 22 minutes, 41 seconds which will be costing near about 3 4 5 cr rupees and we can uh expand our manufacturing capacity as well according to the requirements. 22:50 22 minutes, 50 seconds Got it. Got it sir. All the very best. Thank you. I'll rejoin the call. Okay. Thank you sir. 22:57 22 minutes, 57 seconds Thank you. 23:01 23 minutes, 1 second Next question is from the line of Navy individual investor. Please go ahead. 23:07 23 minutes, 7 seconds Thank you and hello to Sasha and operational questions. 23:15 23 minutes, 15 seconds So manufacturing keeps scaling up. 23:22 23 minutes, 22 seconds So how does management see this becoming a conraint at some point? 23:27 23 minutes, 27 seconds So basically working 23:36 23 minutes, 36 seconds mostly because internal availability and more than that uh you know in the presentation also 23:44 23 minutes, 44 seconds which which has been uploaded uh you will realize that uh this is very good the cash flow that we are talking about. 23:51 23 minutes, 51 seconds So we we are very confident working capital at least in the near future. 24:00 24 minutes Mhm. Okay. Okay. Yes. 24:08 24 minutes, 8 seconds next 12 months like imager 24:45 24 minutes, 45 seconds But since all people have been raising the price, so we have to also part it through the cost increase. 24:54 24 minutes, 54 seconds So accordingly everybody has been accepting that price. 25:04 25 minutes, 4 seconds Sure. Okay. 25:07 25 minutes, 7 seconds Okay. So, uh last question from my end is uh in the numbers that I wanted to understand inventory is still elevated 25:15 25 minutes, 15 seconds at around uh like 29 cr backward integration manufacturing to expect. 25:26 25 minutes, 26 seconds So why hasn't that happened yet? 25:29 25 minutes, 29 seconds Uh this is uh we are manufacturing only two products right now. uh basically we are importing uh 108 products and we are 25:37 25 minutes, 37 seconds having a multiple office uh in all our India bases. So we have to keep the inventory so far as our import is 25:44 25 minutes, 44 seconds concerned. So that is the cost of inventory which we have to keep because right now we are producing two products 25:51 25 minutes, 51 seconds only. The moment we will increase the number of products automatically the inventory will be like that and uh 25:58 25 minutes, 58 seconds furtherly uh wood coating and uh textile both industries are a servicing industry. So at any point of time uh the 26:06 26 minutes, 6 seconds demand will be there. So we will have to keep the inventory in each and every go down and the warehouses to uh fulfill the requirement of the customers. 26:15 26 minutes, 15 seconds Okay. Okay. Thank you so much. That is all for my end. Thank you. 26:22 26 minutes, 22 seconds Thank you. 26:25 26 minutes, 25 seconds Next question is from the line of Jimit Mata from Mata Holdings Private Limited. Please go ahead. Hello. 26:33 26 minutes, 33 seconds Yeah. 26:35 26 minutes, 35 seconds Uh so my question is that with our working capital at around 20 cr and rising currently are we going to see an increase in debt in FI27? 26:46 26 minutes, 46 seconds Um um hi uh this is Urmi Ma speaking. Uh so basically uh not not really until and 26:56 26 minutes, 56 seconds unless uh you know we are taking on additional capets in which case h we'll need additional working capital and thereby yes there will be increase in 27:04 27 minutes, 4 seconds debt for the next year but uh currently uh we don't have any plans as such 27:12 27 minutes, 12 seconds okay got it and I have another question that uh the plant has been built with expansion ready infrastructure 27:19 27 minutes, 19 seconds so what percentage of facility is currently vacant and by when the space will be fully used. 27:27 27 minutes, 27 seconds See uh infrastructure as I have been told lastly that the infrastructure is 27:34 27 minutes, 34 seconds already ready the percentage of the facility is still 80% is remaining there and uh that depends on our the R&D once 27:42 27 minutes, 42 seconds it will be done as well as the micro market growth will be there we will be fulfilling that 80% uh capacity also 27:51 27 minutes, 51 seconds okay got it thank you thank Thank you. 27:58 27 minutes, 58 seconds Thank you. Next question is from the line of Deepak Podar from Sapphire Capital. Please go ahead. 28:04 28 minutes, 4 seconds Yeah, I'm audible sir. Yes. 28:08 28 minutes, 8 seconds Okay. Yeah. Thank you very much for this opportunity. So just a few things. Now we we started manufacturing in the month of November. Would that be a right understanding? 28:18 28 minutes, 18 seconds Yes. Yes. 28:19 28 minutes, 19 seconds Okay. And and what was the revenue mix of trading versus manufacturing in fourth quarter? 28:27 28 minutes, 27 seconds fourth quarter uh it will be uh 15 to uh 15 cr uh for uh manufacturing side. 28:35 28 minutes, 35 seconds Mhm. And the rest will be from the trading 15 crores manufacturing and and so so 28:42 28 minutes, 42 seconds out of cr 16 crores so around 40 and 40% is manufacturing and and and and 60% is yeah yeah yeah 28:50 28 minutes, 50 seconds but so so I mean you mentioned our trading margin is 12 to 15% and manufacturing is 20 25%. So how is the 28:57 28 minutes, 57 seconds math fitting in? Because if 16 crores comes from manufacturing and remaining majority is coming from trading but still our EITA margin is 23%. Right? So 29:06 29 minutes, 6 seconds can you explain that 29:14 29 minutes, 14 seconds [clears throat] 29:16 29 minutes, 16 seconds right? So basically hi this is here. Yes. 29:22 29 minutes, 22 seconds So for the you know fourth quarter of the financial year 26 how we are seeing that the AITA margins for the textile is 29:31 29 minutes, 31 seconds around 14%. Okay wood is standing at 18 and the manufacturing is at 30. So if 29:38 29 minutes, 38 seconds you uh put it together it sits with the calculation that we just mentioned. 29:46 29 minutes, 46 seconds Okay. So I was just trying to understand based on trading versus manufacturing. 29:50 29 minutes, 50 seconds So, so, so you had given the data of 12 to 15% EITA margin in trading. Trading correct? 29:55 29 minutes, 55 seconds So, given the 60% is in uh trading but still we could do 23% AITA margin. So, I was not able to understand this. 30:04 30 minutes, 4 seconds Okay. But, but I hope it's clear now. 30:09 30 minutes, 9 seconds No, it's not yet clear. Uh because uh your trading is still 60% right for fourth quarter and 12 to 15% AITA margin. So how how how did we reach 23% 30:18 30 minutes, 18 seconds EITA margin at the company level given the yeah when we are considering trading we have two segments of trading right now it's 30:25 30 minutes, 25 seconds text and woodh and manufacturing manufacturing is completely different trading segments 30:33 30 minutes, 33 seconds trading or wooding correct correct right but trading margins are 12 to 15% right 30:42 30 minutes, 42 seconds correct yeah so so So so so at 12 to 15% trading margin and at 60% of your revenue will 30:49 30 minutes, 49 seconds not reach 23% ebita margin. That's what I'm trying to understand that how did we get to 23% ebita margin because trading is your 60% which is 12 to 15% margin. 30:59 30 minutes, 59 seconds Now remaining 40% might have 23 manufacturing you said 22 25%. So even I take a higher bar of 25% will not reach 31:07 31 minutes, 7 seconds 23%. That's what I'm trying to understand. Okay give me one second. 31:31 31 minutes, 31 seconds Sorry to keep you waiting. I'm just putting some numbers on Facebook. Please take your time. Yeah. Yeah. Yeah. Thank you. 32:27 32 minutes, 27 seconds Okay. So if I put down the exact numbers for you, uh the AIA percentage for textile for the quarter 4, okay, this is 32:36 32 minutes, 36 seconds specifically for the quarter 4 is coming to 25.5% which will be 3.99. 32:44 32 minutes, 44 seconds Mhm. 32:45 32 minutes, 45 seconds The sorry uh the revenue I'm so sorry revenue is what I meant. Revenue if I put considering the textile for the 32:53 32 minutes, 53 seconds quarter 4 is 28.57% 3.99 33:04 33 minutes, 4 seconds 2.86 86 or manufacturing. 33:17 33 minutes, 17 seconds Okay. 33:18 33 minutes, 18 seconds Or percentage wise. Okay. 9. 33:27 33 minutes, 27 seconds Okay. Okay. Okay. Okay. So, so Okay. 33:29 33 minutes, 29 seconds Okay. So, I will take it offline. I mean um so so I got the basic understanding. 33:33 33 minutes, 33 seconds So, so I have a few other queries from my side. Um, now this current new capacity that of 500 metric ton uh so we have a revenue potential of 78 crores. 33:43 33 minutes, 43 seconds Would that be right? Yes. Yes. 33:46 33 minutes, 46 seconds And and and we we expect to reach it by fi 27 end correct 100%ization financial. 33:56 33 minutes, 56 seconds So ideally from 60% to 100% over the year. So on an average a 80% utilization level for a current year would be a a 34:03 34 minutes, 3 seconds rough I mean um target that we might have from manufacturing. So somewhere between maybe 55 to 65 crores of 34:10 34 minutes, 10 seconds manufacturing revenue 60 70 yeah okay 60 60 70 and and and and how about 34:17 34 minutes, 17 seconds the trading part I mean so so what sort of growth we are expecting in the trading business uh for for this year FI27 34:25 34 minutes, 25 seconds uh so basically this year we are prioritizing manufacturing only so trading 34:32 34 minutes, 32 seconds 1 2% expect 12% uh 10 10 20% growth but the focus will 34:41 34 minutes, 41 seconds continue to be on manufacturing for this year. 34:44 34 minutes, 44 seconds Okay. Okay. Okay. Um uh I got it. So so if if we assume 10 20% growth with manufacturing being so so ideally your 34:52 34 minutes, 52 seconds mix would shift a lot I mean towards your manufacturing right I mean from 25 it would be towards 40%. I mean would that 35:01 35 minutes, 1 second be a right to manufacturing 35:10 35 minutes, 10 seconds right the entire purpose at the endependent we want to focus more on the 35:18 35 minutes, 18 seconds manufacturing trading we focus more on getting towards 5050 at 35:25 35 minutes, 25 seconds least making and and and when you said 2 to 3% expansion in EITA margin right on on 35:33 35 minutes, 33 seconds optimum manufacturing utilization uh so that we are talking at the company overall company level yes 35:41 35 minutes, 41 seconds and and what base we are talking about here I mean is it FI26 base or fourth quarter margins base 35:48 35 minutes, 48 seconds manufacturing base no so at a company level FI26 your margin is close to 20% fourth quarter your margin is around 23% 35:57 35 minutes, 57 seconds so when you're talking about 2 to 3% improvement you're talking about FI26 base or fourth quarter ETA margin base 36:03 36 minutes, 3 seconds mean full financial year for full full financial year correct correct okay okay um understood and and just one 36:11 36 minutes, 11 seconds last thing sorry to interrupt you can I request to come yeah yeah yeah okay okay no problem yeah thank you very much thank you 36:18 36 minutes, 18 seconds thank you next question is from the line of Ausha from Alpha Advisors please go ahead 36:27 36 minutes, 27 seconds uh congratulations sir on a great set of how do you look at that in the balance 36:34 36 minutes, 34 seconds sheet over the next year I cannot hear properly can you I I'm not 36:44 36 minutes, 44 seconds audible properly please can you repeat hello 36:55 36 minutes, 55 seconds hello yeah can you repeat a question please it was not very here. 36:59 36 minutes, 59 seconds So I just wanted to know how do we look at debt and the balance sheet over the next two years and if there are you know any guard rails there because currently the balance sheet is highly leveled. 37:10 37 minutes, 10 seconds Correct. 37:26 37 minutes, 26 seconds You know the manufacturing unit is already working. So focus 37:35 37 minutes, 35 seconds that we are generating right now is very good. internal approvals. 37:45 37 minutes, 45 seconds We're not really worried about the Okay, got it. Got it. Question. 38:08 38 minutes, 8 seconds We have no factory already expansion 38:15 38 minutes, 15 seconds right we have space and resources to come up with more plants to come up with more vessels 38:24 38 minutes, 24 seconds requirement like already mentioned it will be for a couple of you know two three crores investment we'll get the 38:31 38 minutes, 31 seconds vessels and beyond we won't be requiring since uh sorry uh to interrupt uh our 38:39 38 minutes, 39 seconds R&D is also going on. So uh maybe within two three four months we can launch some 38:45 38 minutes, 45 seconds new products also. So uh we may expand little bit with the capacity of the reference also. 38:52 38 minutes, 52 seconds Got it. Got it done. Thank you so much. Thank you. Thank you. 38:59 38 minutes, 59 seconds Thank you very much ladies and gentlemen. Due to time constraint that will be the last question. I'll now hand the conference over to Mr. Sushar Sanvi for closing comments. 39:14 39 minutes, 14 seconds Thank you uh all for participating in this learning call. I hope we have been able to answer your questions 39:22 39 minutes, 22 seconds satisfactory. If you have any further questions or would like to know more about the company, please reach out to 39:28 39 minutes, 28 seconds our uh investor relation managers at SB4 Advisory. And thank you once again. Good evening. 39:37 39 minutes, 37 seconds Thank you very much. On behalf of Celllex Volmerise Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.