Stylam Industries Ltd — Q4 FY26

Stylam Industries Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=Nsr--ezBVfU Published: 1 day ago

0:00 Ladies and gentlemen, good day and welcome to Style of Industries Limited Q4 FI26 earnings conference call hosted by Systematics Institutional Equities. 0:12 12 seconds As a reminder, all participant lines will be in the listen only mode and there'll be an opportunity for you to ask questions after the presentation concludes. 0:21 21 seconds Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchstone phone. 0:29 29 seconds Please note that this conference is being recorded and now the conference for Miss Ana. 0:37 37 seconds Thank you and over to you now. 0:40 40 seconds Thank you Nidita. On behalf of systematics institutional equities, we welcome you all to the Q4 FY26 0:49 49 seconds conference call of Salem Industries Limited. From the management side, we have Mr. Jagish Gupta, managing 0:56 56 seconds director, Mr. Mr. Manit Gupta, whole time director and Mr. Kishan Nagpalar, Chief Financial Officer. 1:04 1 minute, 4 seconds I will now hand over the call to MD sir for his opening remarks followed by the Q&A session. Over to you sir. 1:14 1 minute, 14 seconds It is both an honor and privilege to welcome you this investor meet. I'm Jes Gupta, amazing director of the company 1:22 1 minute, 22 seconds along with me Mr. Manakup Guptach, executive director of the company and Kishan Nakpa, chief executive officer on 1:30 1 minute, 30 seconds behalf of the entire leadership team. I extend my sincere appreciation for your continued trust and support. Investors 1:38 1 minute, 38 seconds presentation has already been available on BSC and NFC and the company official website. I hope you had a chance to review it. 1:49 1 minute, 49 seconds Nevertheless, I would like to take few moment to take financial result but you already have financial result with you. 1:59 1 minute, 59 seconds So we can go for question and answer session. It will be better. 2:05 2 minutes, 5 seconds Thank you very much. We will now begin with the question and answer session. 2:10 2 minutes, 10 seconds Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you 2:18 2 minutes, 18 seconds may press star and two. Participants are requested to use handsets while asking a question. 2:25 2 minutes, 25 seconds Ladies and gentlemen, we will wait for a moment while the question Q assembles. 2:32 2 minutes, 32 seconds Participants, you may press star and one to ask the question. 2:44 2 minutes, 44 seconds First question is from line of Chaitan Sharma from systematic shares and stocks. Please go ahead. 2:50 2 minutes, 50 seconds Uh thanks for the opportunity. Uh sir the my first question is regarding the new plant progress. You mentioned that the construction of the third green 2:58 2 minutes, 58 seconds field laminate plant in Manaktra is progressing well in the BBD. So what is the expected date for the commencement 3:07 3 minutes, 7 seconds of commercial production and uh what is the projected revenue contribution from this facility in the first year of uh operation? 3:19 3 minutes, 19 seconds Hopefully it will be maximum middle of July minimum end of June 3:26 3 minutes, 26 seconds it will start commercial production but we are quite hopeful that we can get 3:32 3 minutes, 32 seconds 3400 road turnover from this plant in next three quarters. 3:41 3 minutes, 41 seconds Okay. And uh one more sir that on the capacity utilization the laminate division achieved the 74% capacity utilization in FY26. 3:51 3 minutes, 51 seconds So with the new plant underway how does management plan to ramp up the utilization at existing facility while 3:59 3 minutes, 59 seconds simultaneously preparing to absorb the new capacity. 4:03 4 minutes, 3 seconds In a new capacity we have a different sizes. So there is a different market the customer is same. So we are 4:13 4 minutes, 13 seconds anticipating more also revenue but due to this war situation we are giving the conservator figures 4:22 4 minutes, 22 seconds and if we run that plant in full capacity then we will stop some machines 4:29 4 minutes, 29 seconds in the from our old plant and if everything go well if it is 100% then 4:35 4 minutes, 35 seconds revenue can be generated double itap capacity almost 4:42 4 minutes, 42 seconds 100% plus resisting the best year. 4:48 4 minutes, 48 seconds Okay. Uh so thank you sir. That's was more from my end. Thank you. 4:56 4 minutes, 56 seconds Next question is from the line of Duru Bajage from Growth Spa Ventures. Please go ahead. 5:02 5 minutes, 2 seconds Yeah sir. Thank you so so much for this opportunity and congratulations on a pretty decent set of considering the capacity constraint that we had. So the 5:10 5 minutes, 10 seconds first question is that our new capacity was supposed to come live by November then we shifted the guidance to March in the previous call. Now in this 5:19 5 minutes, 19 seconds particular call we mentioned that it will come live by Jan uh June. So what are the bottlenecks that we are facing considering you mentioned that almost 80 5:27 5 minutes, 27 seconds to 85% of the work was already done around November time period and then we added another line but again beyond that like we are unable to understand the delays. 5:37 5 minutes, 37 seconds No, no, you're right. We actually in last year no maybe in October or November there was some 5:47 5 minutes, 47 seconds Supreme Court observation in this area clarification. We we need to have to meet EC environment clearance. So 5:57 5 minutes, 57 seconds then we applied that environment clearance to MOS ministry of environment 6:04 6 minutes, 4 seconds Delhi as there is no Shia available in Hara at that time. So it take 2 3 6:12 6 minutes, 12 seconds month 3 month plus to get the EC for this reason plant is little bit delayed. 6:19 6 minutes, 19 seconds Now it is almost near to final stage and testing of machine is already there. 6:25 6 minutes, 25 seconds testing of machine is we will start by the end of this month even two three weeks this was the major reason 6:34 6 minutes, 34 seconds okay so now there is a pretty little scope of further delay right if I understand correctly considering you're already in May you're guiding that June 6:41 6 minutes, 41 seconds live got it and sir once the new capacity comes live so can you guide a little bit more on the ramp up part like we understand like you do a lot of wide 6:50 6 minutes, 50 seconds labeling for export to customers like Wilson art and considering three out of four lines will be dedicated towards export market considering they are 6:58 6 minutes, 58 seconds compact laminates. So how are we seeing the demand side scenario because earlier we had some constraints on the capacity 7:06 7 minutes, 6 seconds part and that's why you mentioned the previous call that we couldn't take any newer customers but now going forward with the new capacity have you already 7:13 7 minutes, 13 seconds onboarded certain new customers with which we have some sort of PO agreement or how do you see that playing out 7:21 7 minutes, 21 seconds firstly I think new plants is not at all dependent on any one customer which you're talking about Right. 7:30 7 minutes, 30 seconds So again what we were saying earlier that we have different sizes some sizes are yeah we would be producing here in India for the first time. 7:40 7 minutes, 40 seconds So sorry to interrupt you you're sounding distant. 7:43 7 minutes, 43 seconds So we have some set of customer with which we are already in discussion with the new sizes and that is why what we were saying that the ramp ups definitely 7:52 7 minutes, 52 seconds in the next two years we will be able to achieve 80% plus capacity utilization of the new uh for this first particular 8:00 8 minutes year we have customers and at this moment uh we are getting delayed with our existing orders as well. So we know 8:07 8 minutes, 7 seconds that 30 to 40% utilization can easily be done in starting from the second point. 8:14 8 minutes, 14 seconds Got it. And margin profile will be around 22 to 24% like we guided before right would be on the same path. 8:26 8 minutes, 26 seconds Okay sir. Fair enough. And sir since the open offer is now completed so can you provide us bit more detailing on what will be the management structure going 8:34 8 minutes, 34 seconds forward like you mentioned that exports will be seen by JBG and domestic by you but given the fact that IA will hold a 8:41 8 minutes, 41 seconds substantial stake and because there was a lackluster response to the open offer where they already have a put option wherein they they can actually buy some 8:50 8 minutes, 50 seconds 12% shareholding from you guys. So how will be the management structure going forward in next six to 12 months if you can provide some dense on that front? 8:59 8 minutes, 59 seconds No change in the management structure. 9:01 9 minutes, 1 second It could remain as it is uh for export and domestic both because it's family done by my father and I'm actually helping him out. So it is not that one 9:11 9 minutes, 11 seconds person is handling export or one person is looking for domestic market. They are professionals handling both the markets 9:18 9 minutes, 18 seconds simultaneously properly and IAR doesn't have any role they are just a strategic partner even if they have a good option 9:25 9 minutes, 25 seconds as per the SHA that doesn't mean that they will be acquiring more shares and letting us out so management everything 9:33 9 minutes, 33 seconds remains the same there's no change at all even on their website in the announcement in Japan as well as in India they are mentioning that we are a 9:42 9 minutes, 42 seconds part and remote dractor is looking after the business. 9:48 9 minutes, 48 seconds Got it. So do you expect to sell these 10 12% stake to IA in next two three years or that was just a clause that were mentioned and you guys don't have 9:57 9 minutes, 57 seconds any intention as such to sell the market 10:06 10 minutes, 6 seconds nobody can predict these things you can tell you only about present but our aim is not to set any state I 10:14 10 minutes, 14 seconds think everyone knows the reason of such a deal happened due to some family issues. Otherwise uh we are actually 10:22 10 minutes, 22 seconds spending or doing planning some more expansion which we might announce in coming quarters what we are actually planning within the country. 10:31 10 minutes, 31 seconds Thank you Du. I'll request to come back for a follow-up question please. 10:36 10 minutes, 36 seconds Next question is from the man of Praesha from lucky investment manager. Please go ahead. 10:42 10 minutes, 42 seconds Yeah. Hello sir. uh congratulations uh for uh you know the the deal and you know uh the good numbers. So first few 10:51 10 minutes, 51 seconds things uh uh one on the uh now the new Japanese strategic partner uh any 10:58 10 minutes, 58 seconds opening that would emerge with respect to supply to them because I think they have got 200 250 crores of business and 11:06 11 minutes, 6 seconds they purchase the sale uh in India uh from third parties and they have a certain plant. 11:14 11 minutes, 14 seconds any scope that that 2300 cr business flow comes from our plants. 11:20 11 minutes, 20 seconds Yeah, I think they are not purchasing it global is not purchasing anything from India. They have their own plant in 11:28 11 minutes, 28 seconds Utapur and still the deal is not yet finished. I think hopefully in the next one month it will be over and then there 11:35 11 minutes, 35 seconds might be some discussions if they plan to and on the can you give some color on 11:42 11 minutes, 42 seconds the phenol and the paper inflation or cost rise for us uh in in this in the last two three months or as on date 11:51 11 minutes, 51 seconds whatever and what kind of price increases we may have to take uh based on the phenol and the paper price 11:59 11 minutes, 59 seconds increases See I think the raw material commodity prices have increased for each and every 12:08 12 minutes, 8 seconds company not only laminates we talk about any company any product you do this all the suppliers are coming from Middle 12:14 12 minutes, 14 seconds East market so yet we have done some price increase in domestic market we did uh in two branches in export market we 12:23 12 minutes, 23 seconds have tried wherever it is possible but again it is 100% not possible to pass off it is just that we are not competing with any other Indian company. We are 12:31 12 minutes, 31 seconds competing with with even European companies where they are not very much impacted with this commodity items. So we have done some price increase with 12:39 12 minutes, 39 seconds both domestic and export but trying to further do it if possible as per the market. 12:47 12 minutes, 47 seconds Can you tell how much is the cost increase and what is the corresponding gap versus the price increase that you have taken? 12:55 12 minutes, 55 seconds Sir listen first of all there is a no immediate impact of any price increase we we are ordered 3 4 months before and 13:05 13 minutes, 5 seconds all we are not buying every day our still old prices of material is coming. 13:13 13 minutes, 13 seconds So if we go for our last month sale, we already have three figures say sale which is the first time in our history 13:22 13 minutes, 22 seconds and with good margins. So yes, if this continues going on this war 13:30 13 minutes, 30 seconds maybe two, three, four month more then it will be impacted that impact will not be on us for everyone. Indian diesel and 13:38 13 minutes, 38 seconds petrol prices definitely will increase in few days. It will impact on you and me also person level. 13:48 13 minutes, 48 seconds Okay. 13:48 13 minutes, 48 seconds And every every our customer understand there are some restriction they are asking us just wait just wait maybe 13:57 13 minutes, 57 seconds finish we increase 3 to 5% to our customers almost everyone accepted. 14:06 14 minutes, 6 seconds Okay. And my last question is uh you gave about see 400 crores of revenue 14:12 14 minutes, 12 seconds from the new plant in FI27. Uh uh can you tell us in these two years let's say 14:19 14 minutes, 19 seconds 27 and 28? Uh what should be the new plant capacity utilization or the revenue number 14:27 14 minutes, 27 seconds ramping up to and at what utilization level will the plant be profitable at operating uh level operating margin level. 14:37 14 minutes, 37 seconds You see profitable level is still from the day one we have no tax we have investment we are not paying any 14:45 14 minutes, 45 seconds installment we are not paying any interest. 14:50 14 minutes, 50 seconds So possibility from the day one when we start on next month when we will produce one container that will be profitable. 15:00 15 minutes Okay. 15:04 15 minutes, 4 seconds already hired the manpower already going on. We need only 150 maximum worker only. So every 15:13 15 minutes, 13 seconds expansions is there in spite of that expansion. You can see in our quarter four result 15:22 15 minutes, 22 seconds fixed cost is already over everything. It's already the part of the expense. 15:31 15 minutes, 31 seconds Yes, already. 15:35 15 minutes, 35 seconds And what kind of revenue is possible next year? This 300 cr becomes what number next year? 15:41 15 minutes, 41 seconds It will be plus easily for the this financial year. I think we will target two to 300 crores from that particular 15:50 15 minutes, 50 seconds plant and uh next year we would be targeting around 80% then 600 6 700. 15:59 15 minutes, 59 seconds Okay. And your old plants will also grow. 16:07 16 minutes, 7 seconds New capacity because that is a bottlene. 16:10 16 minutes, 10 seconds So we cannot actually your s your voice is too too slow coming from a different yeah 16:18 16 minutes, 18 seconds you have the old by sharing more of the value addition. 16:23 16 minutes, 23 seconds Thank you Brites. I'll request to come back for a follow-up question. 16:29 16 minutes, 29 seconds Next question is from the line of Shia Sha from Equest Securities. Please go ahead. 16:35 16 minutes, 35 seconds Yeah sir. So first question is uh with respect to the acrylic segment. So can you just let us know the revenues and 16:43 16 minutes, 43 seconds volumes for the entire FI26 which we received from the acrylic segment. 16:52 16 minutes, 52 seconds See I we told many times that our is not doing so well which we are expecting but 16:59 16 minutes, 59 seconds in this last year we have a 15 cr turnover but our main target this IA 17:07 17 minutes, 7 seconds Japan he's selling very big quantity of acrylic and they are importing from Europe and USA do point so they are here 17:17 17 minutes, 17 seconds yesterday today they and 1 hour before and they are planning to buy acrylic 17:24 17 minutes, 24 seconds from this stylum. So we are quite hopeful and the reason due to family 17:32 17 minutes, 32 seconds problem problem we are not looking after domestic now we are getting this product in domestic also I'm quite hopeful this 17:42 17 minutes, 42 seconds year 50 we definitely will achieve easily I think this year they would be doing 50 17:50 17 minutes, 50 seconds to 60 or 50 to 70 sir sorry can you repeat that one second please be doing approximately between 50 to 70 crores. 18:02 18 minutes, 2 seconds Okay. Uh and another question with respect to after the acquisition. So can you just briefly let us know our overall strategy with respect to domestic and 18:10 18 minutes, 10 seconds exports after the acquisition like how what what are the measures that we uh intend to kind of uh implement with 18:17 18 minutes, 17 seconds respect to whether it is uh new escape additions new region uh entering new regions. So what is the overall strategy across domestic and exports after the acquisition? 18:28 18 minutes, 28 seconds Yeah, I think we basically I think the strategy everything would remain the same. There is nothing special we would be doing. We would be just 18:37 18 minutes, 37 seconds uh using a simple standard common chain would be following the market in export. 18:42 18 minutes, 42 seconds We will be doing what we are doing. That is why we are at this level and domestic market we are restructuring in a proper 18:49 18 minutes, 49 seconds way. uh not to hire any extra people just to try to manage with the lowest cost possible and increase the rate and 18:58 18 minutes, 58 seconds moreover this this was a part of our such with ITA they will techn they have 19:06 19 minutes, 6 seconds many technology data technology in HPI which we are going to start within two 19:12 19 minutes, 12 seconds three months in India in Stalum this will be our strength with Yeah. 19:21 19 minutes, 21 seconds Okay. Understood. Yeah, that's it from my side. Thank you so much. Thank you. 19:28 19 minutes, 28 seconds Next question is from the land of Rudra Asia from IT PMS. Please go ahead. Yeah. Thank you for the opportunity sir. 19:36 19 minutes, 36 seconds Uh am I audible? Yes. Yes. 19:42 19 minutes, 42 seconds Yeah. Thank you sir. Congratulations on a great set. 19:47 19 minutes, 47 seconds Sir uh sir first question the raw material prices 19:53 19 minutes, 53 seconds or uh will we be able to pass on any increase uh further in this quarter also 20:01 20 minutes, 1 second we already explained there are not immediate too much threat of the ramp we 20:09 20 minutes, 9 seconds ordered many things like like melamine we are ordering we have a stock of five to six months 20:16 20 minutes, 16 seconds V is only two months only and all yes there is some effect paper there is no effect 20:25 20 minutes, 25 seconds like craft paper there is no much effect I think only the commodity items which 20:32 20 minutes, 32 seconds were dependent on the middle crude oil they have increased otherwise India may what was being produced in India because 20:41 20 minutes, 41 seconds it is kind of a recession is coming because people are not able to sell so the prices overall of the impact won't be much because we also have forward 20:49 20 minutes, 49 seconds booking of all the chemicals. So till date we are getting some we have to buy at the uh current prices and some things 20:57 20 minutes, 57 seconds still we are getting at the old prices because it is under the contract. 21:03 21 minutes, 3 seconds Got it sir. So this 49% margins that we have done almost in this quarter this is sustainable for the whole year. 21:14 21 minutes, 14 seconds talking material margin RMC. Yes sir. Gross margins. 21:23 21 minutes, 23 seconds Maybe see there will be some there will be some up and down in this. I we cannot say that it will be the same exactly. Yes, but it would be some up and down. 21:31 21 minutes, 31 seconds This would be for the entire industry and moreover is our revenue top line will sale will increase our expansion 21:40 21 minutes, 40 seconds will reduce which we are doing right now. We can do 21:47 21 minutes, 47 seconds 3 400 cr more turnover then there will be no extra expenses. So that will also reduce 21:56 21 minutes, 56 seconds our this ramp increase by 1 2% from that angle also. 22:04 22 minutes, 4 seconds Understood sir. Understood. 22:06 22 minutes, 6 seconds And sir uh to employee cost that I see on quarterly basis 30. 22:20 22 minutes, 20 seconds We need to add more people. 22:23 22 minutes, 23 seconds of 34% more than that plus minus 34% of the amount you are saying maximum 22:31 22 minutes, 31 seconds basically incremental plus 70 80% fixed cost has already been done or even of 22:38 22 minutes, 38 seconds the employ domestic business 22:52 22 minutes, 52 seconds Okay. Yes. Data domestic business. I couldn't understand. 23:01 23 minutes, 1 second Yeah. That we did in domestic business. Okay. 23:05 23 minutes, 5 seconds To be honest because again there are multiple factors. So right now we are taking out as a common thing. 23:15 23 minutes, 15 seconds Sorry the voice is very on the lower side and not able to understand. 23:22 23 minutes, 22 seconds not why is she not coming? Yeah. So slow I was not able to understand. I'm saying 23:32 23 minutes, 32 seconds we can't keep it separately. We are just doing the entire profitability data all together for the entire company. 23:43 23 minutes, 43 seconds Thank you. 23:45 23 minutes, 45 seconds I'll request to come back for a follow-up question. 23:48 23 minutes, 48 seconds Next question is from the line of Kesha Loti from HDFC Securities. Please go ahead. 23:55 23 minutes, 55 seconds I thank you for the opportunity. So actually I guidance you said 300 from new plant. So totally what is your revenue guidance for acquired 27 and 24:03 24 minutes, 3 seconds what sort of margin you will see and this water has been a healthy margin and the new plant as you are highlighting unit can be a 22 24% margin you know the 24:12 24 minutes, 12 seconds plant can do so fair to assume by f28 the company can deliver 22% kind of margin number 24:22 24 minutes, 22 seconds yes if there is any no drastic bar or 24:29 24 minutes, 29 seconds anything then we cannot say anything but looks like that 24:39 24 minutes, 39 seconds okay as revenue guidance for FY27 we cannot it will be definitely 20 to 24:48 24 minutes, 48 seconds 25% increase than the previous again depend on the situation 24:58 24 minutes, 58 seconds okay got And tell me how will be the things now you know now finally the kio has you know bought the steak they also 25:05 25 minutes, 5 seconds have a export business how can they help us to grow our export business they also have a you know they are also in domestic business whether there are 25:14 25 minutes, 14 seconds thoughts to you know possibly merge both of the plans so how we'll leverage to grow our business further 25:22 25 minutes, 22 seconds I think we told earlier to someone else that right still the deal has not been finished properly Once the entire thing is done then we 25:30 25 minutes, 30 seconds will be shutting down and see what all they are not but yet the openers 25:40 25 minutes, 40 seconds more legalities are left once it is done by mid June then we would be sitting down and see how we can help each other. 25:48 25 minutes, 48 seconds Understood. Got it. Thank you sir. Thank you. 25:55 25 minutes, 55 seconds Next question is from the line of Cherak Sha from White Pine Investment Management. Please go ahead. 26:01 26 minutes, 1 second Yes, thank you for the opportunity. So my first question is on US side. So if you can just now indicate what is the 26:08 26 minutes, 8 seconds tariff rate applicable to us versus our competing peer countries that's one and related what is the delay in in shipping 26:18 26 minutes, 18 seconds if any uh from India to US that you have experienced over last one month uh versus what was normal earlier. I'll come back for more questions on the US. 26:31 26 minutes, 31 seconds The tariff right now for US is 10%. I think it might this might go under 26:38 26 minutes, 38 seconds review on 1st of July which is again 15 days of green I don't know about the 26:46 26 minutes, 46 seconds other countries so the US I can just tell you and uh secondly I think as of now we were not finding any issue 26:55 26 minutes, 55 seconds are FO prices are FOB so the prices go up and down the customer accept it and there is no delay I think the transit time is generally between 45 days 2016. 27:06 27 minutes, 6 seconds Okay, this is good. That is helpful. And on the domestic side, uh if you can just talk what what changes in the business 27:14 27 minutes, 14 seconds model you have made and more importantly, what efforts have been made to improve the visibility of brand. Our 27:21 27 minutes, 21 seconds checks indicate that uh at dealer distributor level brand is people are aware but not really enthused and the 27:30 27 minutes, 30 seconds concept it's a expriven brand. So if you can just talk about what changes you are doing and how much time it will take for 27:38 27 minutes, 38 seconds you to have the benefits or the impact visible is it a three four quarter phenomena it's a or a lesser period 27:47 27 minutes, 47 seconds phenomena uh I think point number one that in domestic it has just been 3 months since 27:56 27 minutes, 56 seconds we have started handling it so we are also trying our best and again we are not doing any major changes we are just running it in a very systematic way how 28:05 28 minutes, 5 seconds we are doing in the export market. So there won't be any difference or any special thing we would be doing for the domestic market. Whatever we doing for 28:13 28 minutes, 13 seconds export and that is the reason we are at such a level in the export market and would be doing the same in the Indian market as well. And definitely brand 28:20 28 minutes, 20 seconds visibility it might take few months I won't I won't say few years because people are aware about style and brand name very well all the distributed 28:27 28 minutes, 27 seconds leaders it was just that their confidence was not much on the company due to policies. Now everything is getting streamlined. So hopefully you see the adjusted in the coming quarters. 28:37 28 minutes, 37 seconds So basically two to two to three quarters we should start feeling the impact right of your efforts. Is it a fair assumption? Correct. 28:45 28 minutes, 45 seconds Correct. 28:46 28 minutes, 46 seconds Okay. And the last question just a clarification. So on this AKA global uh you indicated that you will discuss 28:56 28 minutes, 56 seconds with them to ensure that the share that you are have to tender to them can be lowered or you will try to figure out 29:04 29 minutes, 4 seconds the option so that your doesn't go down significantly. Is this the correct understanding that that that is a possibility? 29:13 29 minutes, 13 seconds No no no I think so and this we don't have to discuss anything because whatever they get from the open offer that is separate and just to complete 29:22 29 minutes, 22 seconds the remaining uh 40% we have to tender it there is no discussions over it okay it is agreement 29:31 29 minutes, 31 seconds okay no earlier some so somebody had asked the question that uh and uh I I understood that you have an option of 29:39 29 minutes, 39 seconds ensuring that you don't have to tender everything the agreement they have to take 40% whatever they get from the open offer 29:47 29 minutes, 47 seconds the remaining we will we have two you have two okay point thank you very much and all 29:57 29 minutes, 57 seconds thank you next question is from the line of pankage from access capital please go ahead 30:06 30 minutes, 6 seconds yeah hi thank thanks thanks a lot for the opportunity uh I have a couple of quick questions one is uh we just heard the guidance of 25 odd% for FI27. We 30:14 30 minutes, 14 seconds also heard that we are expecting 300 odd crores coming out of the new plant. So I think the math is not really matching because uh uh 300 cr anyway gives much 30:24 30 minutes, 24 seconds more than 25% uh growth in FI27. So if you can just put more color around that that would be good. That's one. Second 30:30 30 minutes, 30 seconds thing is what is our uh uh uh percentage of export revenue versus domestic uh revenue in FI27 and how are we seeing 30:38 30 minutes, 38 seconds that happening in FI27 uh considering the situation we are into. 30:46 30 minutes, 46 seconds I think the figure what someone asked us regarding the utilization of the capacity is that's why we gave a very 30:54 30 minutes, 54 seconds rough figure as a base figure of 250 to 300 and someone again asked us what figures would you be doing in 527 and 31:02 31 minutes, 2 seconds that was also a rough figure of 20 to 25%. I think we cannot give you the exact number what we will be closing in 31st March 27. This is a rough figure of 31:11 31 minutes, 11 seconds whatever we have done this year plus 20 25% those what we are expecting that all depends again on the market condition 31:19 31 minutes, 19 seconds how the war goes what is happening in the world globally as well as even in April we already told you we 31:27 31 minutes, 27 seconds have a three figure sales from the old plant no much sale of acrylic 31:34 31 minutes, 34 seconds only 12% increase already from the existing plant without acrylic X even so 31:42 31 minutes, 42 seconds things are moving in a very very good direction. 31:46 31 minutes, 46 seconds It will not be good to answer exact figures. 31:52 31 minutes, 52 seconds Okay sir. What is the second export versus do export versus domestic in FI26 and outlook for FI27 considering the war 32:01 32 minutes, 1 second 26 is 75 25% and uh we hope that it will remain the same but domestic we are 32:08 32 minutes, 8 seconds already aggressively working to increase the share but we can take the same base figure is around 70 plus 25 32:16 32 minutes, 16 seconds and I assume 75 is exports right Hello. 32:24 32 minutes, 24 seconds Hello. Yes. 756 points. Okay. Okay. Thank you. Thanks a lot. 32:29 32 minutes, 29 seconds Thank you. Next question is from the line of Nishida from Sapphire Capital Partners. Please go ahead. 32:36 32 minutes, 36 seconds Yes. Hello. Um am I am I audible? Yes. Yes. 32:43 32 minutes, 43 seconds Yeah. Yeah. So, uh I actually just had a clarification on the guidance that you gave. uh you initially said that from 32:50 32 minutes, 50 seconds the new plant we can uh reach about 300 to 400 crores of revenue in the next three quarters. 32:59 32 minutes, 59 seconds So and you also mentioned uh that we'll reach 30 to 40 40% utilization by Q2 33:06 33 minutes, 6 seconds FY27 in the new plant. So I just wanted to understand the guidance of 600 crores that you gave. Is that at 80% utilization? 33:23 33 minutes, 23 seconds Hello. Actually, hello. You're not audible. 33:26 33 minutes, 26 seconds You can do around 900 to 1,000 crores from the new plant. That is why 900 to,000 cr. 33:36 33 minutes, 36 seconds That is the new plant coming up. That is why we gave you 47. He said hello 33:42 33 minutes, 42 seconds person the figure comes to 300 cr and next actually your voice is not audible if 33:50 33 minutes, 50 seconds you can repeat what you just said your voice is very muffled hello can you hear me 33:59 33 minutes, 59 seconds yes yes I can hear you now so you mentioned 9002,000 cr at peak utilization correct that is why we said fi27 300 34:08 34 minutes, 8 seconds crores we can easily get from this new that next year we said to 60 to 70% a bare minimum figure of 600 crores can be achieved. 34:18 34 minutes, 18 seconds Okay. Okay. 34:22 34 minutes, 22 seconds Yeah. Uh and uh I just since I'm attending the conf I'm sorry if the question is repeated. What is the payex 34:29 34 minutes, 29 seconds that we did for this new plan? The total capex amount 34:37 34 minutes, 37 seconds we have at this moment uh done the capex of 334 crows. 34:45 34 minutes, 45 seconds Thank you. I should have requested to come back for a follow-up question please. A request to all the participants kindly limit yourself to 34:52 34 minutes, 52 seconds two questions per participant. Next question is from Lana Vishwari from IG India. Please go ahead. 35:00 35 minutes Yeah. Hi Aritai thank you for the opportunity. Uh we understood uh the consist uh the reason behind consistent 35:09 35 minutes, 9 seconds delays in our new plant. So uh since we are sitting into the May and now we are talking about end of June or middle of 35:16 35 minutes, 16 seconds July starting. So I would like to know what is the exact pendency for now? 35:24 35 minutes, 24 seconds So we've already replied to this question that there was an issue of the environment clearance by the Supreme Court of India and that is why the 35:31 35 minutes, 31 seconds trials have already started but the commencement of the commercial production will be end June maximum early July. 35:40 35 minutes, 40 seconds Okay. And what is gross margin into our business? 35:49 35 minutes, 49 seconds What do you mean the gross margin? 35:52 35 minutes, 52 seconds the gross level margins uh we are having 20% kind of a beta level margin I want to know gross margins into business 36:06 36 minutes, 6 seconds 49 I think it was 49% as in the fourth quarter fourth quarters was 39% 36:15 36 minutes, 15 seconds okay and uh what what could be the uh uh magnitude of fixed expense into our new new plant. 36:26 36 minutes, 26 seconds We've already taken that into the account as we were repeating it again that it's already been done. So there'll 36:33 36 minutes, 33 seconds be a very marginal cost added when we start the plan because all the it's already been taken there. 36:43 36 minutes, 43 seconds Thank you. 36:45 36 minutes, 45 seconds Next question is from the plan of Prasanjit Paul from Paul asset. Please go ahead. 36:50 36 minutes, 50 seconds Yeah. Uh good afternoon everyone. Uh thank you for the opportunity. Uh so my uh question is let's assume the allocated oil size uh remains for the 36:58 36 minutes, 58 seconds next in this entire 2026 and also we hope as you are exporting so there are some C fair rate increase. So uh if we 37:07 37 minutes, 7 seconds assume that the oil price remains elevated for this entire 2026 in that case what will be the uh ITA margin that you can expect? So how much margin 37:16 37 minutes, 16 seconds impact will be there if the elevated oil price remains? 37:22 37 minutes, 22 seconds Actually we cannot we are quite hopeful that it will remain it should remain the same maybe plus minus 1 2%. The reason 37:31 37 minutes, 31 seconds being we are also start increasing the prices to the customer then war immediately start there was very high 37:39 37 minutes, 39 seconds increase in the ocean rate. It now start going down already reducing the ocean rate also. So nobody can predict but 37:47 37 minutes, 47 seconds there will not be too much effect on the beta books. The reason being whichever 37:54 37 minutes, 54 seconds revenue will increase like 3 400 cr sale that that has no any expenses expenses 38:04 38 minutes, 4 seconds no salary expenses. So 2 3% VA we will cover from there also which can be 38:11 38 minutes, 11 seconds shared with the law increase that can be shared there like last year even we paid 38:21 38 minutes, 21 seconds custom duty half to the US customer which now it is already domestic 38:28 38 minutes, 28 seconds increase uh reduce number two dollar is favoring us euro we will cover from that side also 38:36 38 minutes, 36 seconds almost euro in one par today and dollar is almost near to 96. So we are getting 38:43 38 minutes, 43 seconds three four 5% profitability from the exchange rate also. So there are so many other 38:52 38 minutes, 52 seconds parameter we don't think so there will be very big impact. Yes this situation 38:58 38 minutes, 58 seconds is going on 1 to 3% down no matter our April is the best month for us last month. 39:07 39 minutes, 7 seconds Okay. Uh so sir uh as you take the price hike so despite the price hike will the demand remain same I isn't like that the inflationary pressure will also I mean 39:16 39 minutes, 16 seconds uh mute the demand outlook I think that doesn't 39:24 39 minutes, 24 seconds matter at all at the moment not not only for us for anyone there's a price increase people will still keep on buying it is not that if the prices go 39:33 39 minutes, 33 seconds up people will stop buying it and stop construction Thank you. 39:41 39 minutes, 41 seconds Next question is from the line of Vesha from Investic India. Please go ahead. 39:47 39 minutes, 47 seconds Yeah. Hi, Namaste sir. Sir just wanted to understand uh incremental char 39:56 39 minutes, 56 seconds when can we expect this by uh can it be FI28? Uh how should we look at that sir? 40:04 40 minutes, 4 seconds I think you were saying by 27 only we would be able to do around 300 rows with the new. 40:13 40 minutes, 13 seconds Wonderful. And sir, how should we look at the volume number is s total million sheets. 40:20 40 minutes, 20 seconds What is it that we can expect volume? I think I can 40:29 40 minutes, 29 seconds see volume selling more of compact laminates and not thin laminates. If you talk about a 40:37 40 minutes, 37 seconds 12 mm compact which is equal to maybe 20 sheets of 0.7 mm. So for us actually we 40:45 40 minutes, 45 seconds don't calculate on number of sheets. It is it can be done on planets but not on number of sheets. 40:52 40 minutes, 52 seconds Perfect. Uh sir that that is perfectly fine and sir how should we look at the capeex uh for say FI27 and FI28. So we 41:00 41 minutes have this plant which is almost ready July definitely. But sir is what is the next big plan that we have? How should 41:09 41 minutes, 9 seconds we look at it? Say uh Manet you are there completely into the business five years out. How should we look at it sir? 41:16 41 minutes, 16 seconds Next quarter s we will let you know what we are actually planning further ahead. 41:21 41 minutes, 21 seconds Okay perfect. No worry sir. Thank you so much. All the very best sir. Thank you. Thank you very much. 41:29 41 minutes, 29 seconds Ladies and gentlemen, that will be the last question for today. With that, we conclude today's conference call. 41:37 41 minutes, 37 seconds On behalf of systematic institutional equities, that concludes this conference. Thank you for joining us and you may now disconnect your line. Thank you.