TCPL Packaging Ltd — Q3 FY26

TCPL Packaging Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=RIjeuDXZL7M Published: 2 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to TCPL Packaging Limited's earnings conference call. As a reminder, 0:08 8 seconds all participant lines will be in the listenon mode and there will be an opportunity for you to ask questions after the presentation concludes. Should 0:16 16 seconds you need assistance during this conference call, please signal an operator by pressing start and zero on your touchstone phone. Please note that 0:24 24 seconds this conference is being recorded. I now hand the conference over to Miss Jenny Rose from CDR India. Thank you and over to you ma'am. 0:33 33 seconds Good afternoon everyone and thank you for joining us on TCPL packagings Q3 and 9M FI26 earnings conference call. We 0:41 41 seconds have with us today Akora executive director and Mr. Vive Dway GM finance of the company. We would like to begin the 0:49 49 seconds call with brief opening remarks from the management following which we will have the forum open for an interactive question and answer session. Before we 0:58 58 seconds start, I would like to point out that some statements made in today's call may be forward-looking in nature and a disclaimer to this effect has been 1:06 1 minute, 6 seconds included in the results presentation shared with you earlier. I would now like to invite Mr. Aar to make his opening remarks. Over to you Asha. 1:16 1 minute, 16 seconds Good afternoon everyone and thank you for joining us on our earnings call. I will begin by taking you through the business highlights for the period under review and then we can open the forum 1:25 1 minute, 25 seconds for Q&A. After a measured start to the quarter, demand improved gradually across key segments enabling us to deliver healthy doubledigit growth in 1:33 1 minute, 33 seconds the domestic market. This domestic performance helped offset the decline in export volumes which remain subdued amid continued softness in international 1:41 1 minute, 41 seconds markets. In this environment, we remain focused on strengthening customer relationships across geographies while taking a calibrated approach. Coming to 1:50 1 minute, 50 seconds our financial performance, consolidated revenue for Q3 stood at 471 CR. On the 1:58 1 minute, 58 seconds profitability front, we uh we reported a strong improvement with IBIDA increasing by about 15% yearonear to 81 CR and 2:06 2 minutes, 6 seconds margins expanding to 17.2% 2% reflecting an improvement of over two 240 basis points. This expansion was primarily 2:15 2 minutes, 15 seconds driven by better gross margins supported by favorable product mix and tighter cost control. During the quarter, we recognized an exceptional loss of 11 cr 2:24 2 minutes, 24 seconds 57 lakh rupees related to the implementation of the revised labor code framework. This represents a one-time impact. Reported PAT for the quarter 2:33 2 minutes, 33 seconds stood at 25 cr rupes while cash profit was 56 crore rupees. I would also like to highlight the commissioning of our 2:41 2 minutes, 41 seconds grav cylinder manufacturing facility at Silvasa established under our wholly owned subsidiary Acura Technique Private Limited. 2:49 2 minutes, 49 seconds This marks an important milestone in our backward integration journey. By bringing this critical input in house, we enhance process control, improve 2:57 2 minutes, 57 seconds print precision and quality consistency and reduce dependence on external sourcing. The facility has been designed with surplus space, providing 3:06 3 minutes, 6 seconds flexibility to address external demand over time and further strengthening our integrated capabilities. 3:13 3 minutes, 13 seconds Alongside our operational milestones, we were honored to receive important recognitions. During the quarter, we were awarded the most preferred 3:20 3 minutes, 20 seconds workplace award 25 to 26 in the manufacturing category, reflecting our continued focus on building a strong, inclusive, and performancedriven 3:29 3 minutes, 29 seconds organization. In addition, TCPL secured six wins at IFK Star Wars 2025, reaffirming our commitment to 3:36 3 minutes, 36 seconds creativity, innovation, and excellence in delivering differentiated packaging solutions. 3:42 3 minutes, 42 seconds These recognitions reflect the strength of our people, processes, and product capabilities. 3:48 3 minutes, 48 seconds To close, domestic demand continues to remain healthy and is expected to be a key driver of growth, supported by policy measures aimed at boosting 3:57 3 minutes, 57 seconds consumption and strengthening manufacturing competitiveness. 4:00 4 minutes In addition, recent trade developments involving the EU and the US as well as some other markets are expected to improve export sentiment and to create a 4:09 4 minutes, 9 seconds more favorable operating environment over time. With our expanding manufacturing footprint, diversified product portfolio and disciplined 4:16 4 minutes, 16 seconds capital allocation approach. We believe we are well positioned to capture growth opportunities as the industry continues to consolidate towards organized 4:24 4 minutes, 24 seconds players. Before we move to the Q&A session, I would like to acknowledge that the board conferred the honorary title of chairman emeritus on my 4:32 4 minutes, 32 seconds grandfather, Mr. KK Canorya. As the founder of TCPL packaging, he laid the foundations of the company and shaped a sie growth trajectory. Over the years, 4:41 4 minutes, 41 seconds he has served the organization in various capacities, including as chairman, and has been instrumental in building a strong institution anchored 4:49 4 minutes, 49 seconds in values, governance, and long-term strategic thinking. The guidance and principles he has instilled continue to shape the company's culture and 4:56 4 minutes, 56 seconds direction. The board has also approved the appointment of my father Mr. Sake Canorya as chairman and managing 5:03 5 minutes, 3 seconds director over the years. Uh Mr. Canoria has been instrumental in shaping the company's strategic priorities and 5:10 5 minutes, 10 seconds enhancing operational excellence. We look forward to his continued leadership as he guides the company into its next phase with a strong emphasis on 5:19 5 minutes, 19 seconds sustainable growth and innovation. On that note, I would request the moderator to open the forum for any questions or suggestions that you may have. 5:28 5 minutes, 28 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone 5:36 5 minutes, 36 seconds telephone. 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 5:45 5 minutes, 45 seconds question. Ladies and gentlemen, we will wait for a moment while the question Q assembles. 6:01 6 minutes, 1 second First question is from the line of Nishant Bhaga from Encred Research. Please go ahead. Yeah, thank you for the opportunity sir. 6:09 6 minutes, 9 seconds So I have two questions on domestic business and couple of on export. So firstly on domestic business uh again so with uh the GST related trade 6:18 6 minutes, 18 seconds disruptions largely behind us now. So how is the domestic business currently performing and what growth outlook are you setting for the next year? 6:27 6 minutes, 27 seconds Yeah. So uh there was a disruption of about 2 months I'd say and then there was a bump because the restocking. So 6:36 6 minutes, 36 seconds now we'll see how the performance pans out this quarter and in coming quarters. 6:40 6 minutes, 40 seconds So far it's okay. I wouldn't say there's any issue as such. Uh but we'll see how it goes now over the next few months. 6:50 6 minutes, 50 seconds Sure sir. And second uh with respect to the sharp price hike underway uh in cigarettes what kind of volume or realization impact are we expecting on that portfolio? 7:02 7 minutes, 2 seconds Yeah. Um so this is a a big increase in the tax. I think this has happened after 7:09 7 minutes, 9 seconds I think almost 5 years if I'm not mistaken that there's been this kind of an increase in the tax. So definitely it it's a negative sentiment for the 7:18 7 minutes, 18 seconds domestic cigarette business. However, being a very inelastic uh consumption 7:25 7 minutes, 25 seconds kind of item, I'm not sure what the you know end of the day the volume impact is going to be. So we have to wait and 7:33 7 minutes, 33 seconds watch but yeah certainly if there was a growth happening it will hit that but whether there will be a negative effect 7:40 7 minutes, 40 seconds on the volume is uh we'll have to see I suppose. 7:46 7 minutes, 46 seconds Okay. Sure. And secondly on the export business. Uh so export remained under pressure in 3Q as well. But now that the 7:54 7 minutes, 54 seconds trade deal have been made with US and Europe and both of them were uh low to mid single digit contributor each to our export business. So how are we looking 8:02 8 minutes, 2 seconds at this segment uh this regions going forward and can we expect a significant ramp up uh from these regions? 8:10 8 minutes, 10 seconds Yeah. So you know people had asked me this in previous quarterly calls as well that you know if it gets resolved then 8:16 8 minutes, 16 seconds how fast we can ramp up. So I would say that now the inquiries have start will start coming or have started 8:23 8 minutes, 23 seconds coming. So for it to translate into business will still take a little bit of time and uh in some cases customers do 8:31 8 minutes, 31 seconds their um planning well in advance. So then you know once they've already done their developments for the coming 8:40 8 minutes, 40 seconds quarters then that gets locked but uh overall it's very positive and there will be some good momentum coming out of 8:47 8 minutes, 47 seconds this but it will take some time to play out. It's not that it will just suddenly uh restart uh the momentum which was there earlier. 8:58 8 minutes, 58 seconds Okay. And uh on the Middle East also how is the demand from the Middle East shaping up for us? By when again can we expect a meaningful recovery particularly in the Middle East? 9:10 9 minutes, 10 seconds Uh yeah so we can't comment on specific markets or customers but uh overall I'd 9:16 9 minutes, 16 seconds say it's bit choppy and uh sometimes up sometimes down but no major 9:25 9 minutes, 25 seconds cause of concern as such and lastly uh so on the uh particularly on the January month so how has January 9:33 9 minutes, 33 seconds month been for us for exports would we have come back to double digit growth in January I can't comment on month by month. 9:42 9 minutes, 42 seconds Sure, no problem. That's it for my Thank you. 9:49 9 minutes, 49 seconds Thank you. Participants who wishes to ask a question, please press star and one. The next question is from the line 9:56 9 minutes, 56 seconds of Anupama from Rata Capital. Please go ahead. 10:01 10 minutes, 1 second Uh yeah I uh could you uh kindly give us the numbers for your uh domestic growth volume as well as ASP? I didn't get your name and company name. 10:10 10 minutes, 10 seconds Can you repeat that please? Uh yeah uh Anupama from Ratantra Capital 10:18 10 minutes, 18 seconds Yeah. So I just wanted domestic numbers for volume and u ESP. 10:25 10 minutes, 25 seconds Um so there is a there's a low double digit growth in the domestic volume. 10:32 10 minutes, 32 seconds low double digit growth in the volume. 10:34 10 minutes, 34 seconds Okay. So uh ASP also has declined you could say because uh I don't understand what what the the uh selling uh price has also 10:42 10 minutes, 42 seconds declined or is that uh flattish have you taken hit on the realization flattish flattish. 10:51 10 minutes, 51 seconds Okay. Okay. And uh also on the uh Chennai plant what is the uh utilization and uh yeah 11:00 11 minutes uh Chennai utilization is less than 50% right now but we are uh expecting some 11:06 11 minutes, 6 seconds good improvement in coming quarter right uh of our audits and all are done so should start improving now. 11:16 11 minutes, 16 seconds Okay. And like what kind of timeline are you looking at like for it to scale up? Next few months. 11:24 11 minutes, 24 seconds Sure. Okay. And uh could you also give us the utilization for your overall capacity and uh flexible packaging and uh the paper part also? 11:35 11 minutes, 35 seconds Uh overall about 70 75% I'd say 11:42 11 minutes, 42 seconds right. and for flexible packaging bit higher than that. 11:50 11 minutes, 50 seconds Right. Okay. Yeah. Um that's it. Uh thank you so much. Thank you. 11:57 11 minutes, 57 seconds Thank you. 11:59 11 minutes, 59 seconds The next question is from the line of Ranjan, an individual investor. Please go ahead. Uh good afternoon sir. 12:08 12 minutes, 8 seconds I see I would like to know uh total gross block capital expenditure for the next 12:16 12 minutes, 16 seconds two years how much it will be and what will be the turnover likely in the next 3 years and what will be the current 12:23 12 minutes, 23 seconds year's capitalization of the gross block I would like to know that and what is the market size of the packaging your 12:31 12 minutes, 31 seconds industry in this line and what is our market share is it growing or it is static like to know that that's all. Thanks. 12:46 12 minutes, 46 seconds Hi. Um yeah, just a second. Last year we bought a 150 cr of capex approx. 12:56 12 minutes, 56 seconds Um how much was capitalized in that year versus the it's pretty much the same number. 13:04 13 minutes, 4 seconds Um the total cross block I'll be I think 28 26 how much? 13:13 13 minutes, 13 seconds And that page demand is going these are all numbers you can get from the balance sheet but uh total gross 13:20 13 minutes, 20 seconds block is over 1100 cr gross fixed asset and 13:28 13 minutes, 28 seconds about 150 cr was the capex last year sorry 2426 256 right 13:35 13 minutes, 35 seconds 2425 uh 2526 how much another 100 odd will be added on top. 13:43 13 minutes, 43 seconds Okay. For the next two years for every 1 rupee you put it, how much turnover will be I mean be generating? 13:52 13 minutes, 52 seconds Um we're adding about 150 cr I think to the top line you're on here. 13:59 13 minutes, 59 seconds That mean 1.5 times only every year like that for every you put it. 14:03 14 minutes, 3 seconds Yeah. Basically what is the cash conversion ratio? It is 60 or 90 days or is it going extending actually? 14:12 14 minutes, 12 seconds 90 odd you able to add uh tell me sir 14:20 14 minutes, 20 seconds uh tell me you able to add more customers this from Chennai plant 14:28 14 minutes, 28 seconds will be very good I think looks like that yeah it's positive quite happy you're quite happy very good I'm also 14:37 14 minutes, 37 seconds from Chennai I'm happy thanks Okay, welcome. 14:46 14 minutes, 46 seconds Thank you. The next question is from the line of Shri Shri Jana Mittal M from MS Capital. Please go ahead. 14:54 14 minutes, 54 seconds Hi. Uh thank you for the opportunity. I have two questions. Uh one is a clarification of something you mentioned 15:01 15 minutes, 1 second earlier. You said that the volume growth for the domestic business is low double digit. Was that for 9 months or for this particular quarter? 15:11 15 minutes, 11 seconds Both for both. Okay. Understood. Uh and second one second is can you understand 15:18 15 minutes, 18 seconds that the gross margin for uh like for this quarter particularly has expanded by 2 and a half% close to 2 and a half%. 15:27 15 minutes, 27 seconds From 40% to 42.7% right. So what would be what would explain that when uh just 15:34 15 minutes, 34 seconds based on our understanding uh from what you mentioned the export the export business has not grown as such and export is tends to be a higher gross 15:43 15 minutes, 43 seconds margin. So uh what would explain the rise in the gross margins? Yeah, I I would advise not to get into it on a 15:52 15 minutes, 52 seconds quarterly basis because these things change based on the stock. Uh uh changes from quarter to quarter can vary quite a 15:59 15 minutes, 59 seconds lot and um it's not really going to help you to look at it quarterly. It's just too 16:06 16 minutes, 6 seconds granular. I would I would not look at it quarterly. Uh right. Um right. Okay. Thanks. 16:17 16 minutes, 17 seconds Thank you. The next question is from the line of Pulgit Singles from Dalmas Capital Management. Please go ahead. 16:24 16 minutes, 24 seconds Yeah, thank you for the opportunity. Uh first question is on the domestic side. 16:29 16 minutes, 29 seconds We seem to have done quite well if it's a double digit growth 9 months and last three months. But uh the commentary from 16:36 16 minutes, 36 seconds FMCG companies has shown like you know quite a bit of pickup. So is that something that we are also seeing and therefore the growth could pick up for us as well? 16:45 16 minutes, 45 seconds You're saying that commentary is showing quite a bit of pickup or quite less pick up. It was a little pick up pick up to be good from FMCG 16:53 16 minutes, 53 seconds companies. The commentary is better this quarter. The delivery is also better and commentary is also better. 16:59 16 minutes, 59 seconds So to that extent if we've already done double digits you know for 9 months and even the last three months then would is 17:06 17 minutes, 6 seconds it fair to assume that whatever would be the growth rate it will pick up for us as well? 17:11 17 minutes, 11 seconds I hope so but uh we don't know we we'll see how it goes but it's very uh it 17:19 17 minutes, 19 seconds varies you know customer to customer some customers are doing very well some in similar category are not doing that well so I mean if if you want to say 17:29 17 minutes, 29 seconds that is there like a broad base all our customers have just suddenly picked up post this thing I would not say that but there are pockets where there's been a 17:38 17 minutes, 38 seconds very good pickup and then there's pockets where it's not really uh showing much. So I I I just don't understand the it's a bit funny. 17:50 17 minutes, 50 seconds Yeah, it's overall. Yeah, I get that. Okay. Yeah. Kind of thing. 17:58 17 minutes, 58 seconds But on the for the exports to I mean the overall numbers are uh impacted by exports which 18:05 18 minutes, 5 seconds suggests a high degree of decline in exports because you know if you have done double digits in domestic the only way it gets offset is you know if 18:13 18 minutes, 13 seconds exports is down significantly which is a bit surprising given that we've done very well in the last five years. I mean what has led to this and 18:22 18 minutes, 22 seconds like how much like how much time would it take for it to stabilize at a certain level in your opinion? 18:29 18 minutes, 29 seconds Um I think it's bit too much reading of tea leaves but basically we've done very well over the last several years and uh 18:38 18 minutes, 38 seconds last year in particular there was a very big uh growth in our uh exports uh in general. 18:47 18 minutes, 47 seconds So it's bit of a stabilization here I'd say. I don't know. And is there any 18:53 18 minutes, 53 seconds greater underlying factor cause or is it just customer to customer sort of incidental 19:02 19 minutes, 2 seconds uh factors that is the uh point so I mean there's 19:10 19 minutes, 10 seconds not too much detail we can get into on on a public call but um 19:16 19 minutes, 16 seconds I I mean I would not say there's some great cause of alarm or something that no 19:24 19 minutes, 24 seconds unders. Lastly, uh I mean these various FTAs, I mean US, EU, which one are you most excited by? Where could we see like 19:33 19 minutes, 33 seconds you know in two three years? How how big could these regions be for you? What what is the sense do we have? 19:42 19 minutes, 42 seconds Okay. So obviously the US is the one which was the most uh I mean that was a big stumbling block to to any work happening. 19:53 19 minutes, 53 seconds Uh because at 50% you just can't do any business or you can do just for the sake of like the customer waiting for the 20:00 20 minutes tariff to come down so he's keeping you alive but uh with 18% you can do business. So at least that opens a door 20:08 20 minutes, 8 seconds which was completely closed. So that's positive. 20:12 20 minutes, 12 seconds Uh with the EU, our folding carton was already at zero. So there's no impact 20:19 20 minutes, 19 seconds there. Um but on the flexible packaging side, we save a few% on the tariffs. So that's positive. 20:28 20 minutes, 28 seconds And then with both markets, the opshot is on other industries exporting 20:35 20 minutes, 35 seconds from India, which will require packaging. 20:39 20 minutes, 39 seconds So where we get a sort of second order benefit. 20:43 20 minutes, 43 seconds So that is the main positive I would say you know like things like toys, textiles those kind of things. Now that how long 20:51 20 minutes, 51 seconds it takes to play out and all that it really depends customer to customer and brand to brand and then what benefit we get out of it also versus other people. 21:03 21 minutes, 3 seconds So but okay uh but overall it it's good because the rising tide lifts all boats. So uh 21:10 21 minutes, 10 seconds yeah but direct customer sales we don't anticipate much like in the sense this is second order impact as you rightly say but uh 21:18 21 minutes, 18 seconds so direct customer sale also the main benefit will be with the US but even the EU like with flexible packaging is very positive even the UK also had a high 21:27 21 minutes, 27 seconds tariff on flexible packaging so that's also come down so all these things are very positive uh but they take time to 21:35 21 minutes, 35 seconds play out it's not that there's like orders sitting and waiting for for the tariff to reduce and then they just come in one fine day like it the 21:44 21 minutes, 44 seconds development starts and it takes months to play out but yeah it's overall very positive we're happy 21:50 21 minutes, 50 seconds so it's a FI28 story that one I mean the US EU reflecting in our numbers significantly 21:59 21 minutes, 59 seconds I see now you're asking very specific answer okay all right great thank you and all 22:07 22 minutes, 7 seconds the Thank you. 22:11 22 minutes, 11 seconds Thank you ladies and gentlemen to ask a question please press star and one. 22:19 22 minutes, 19 seconds The next question is from the line of Harini Dia from Tamura Investment Managers. Please go ahead. 22:26 22 minutes, 26 seconds Hi Akshai thanks for taking my question. 22:28 22 minutes, 28 seconds Um just one question. Should a FY1819 kind of scenario play out in paper prices? 22:35 22 minutes, 35 seconds Is there something that we've built differently into our business style and operations now that our margins would 22:43 22 minutes, 43 seconds you know cave but not cave as much or would like just trying to understand the resilience of these margins should a scenario like that play out again? 22:52 22 minutes, 52 seconds Talking about that postcoid boom in the paper prices. No, no. Precoid 1819 when you when we saw China coming and you 22:59 22 minutes, 59 seconds know uh really dumping a lot and then we had that uh you know severe margin compression of 400 basis points. Just 23:08 23 minutes, 8 seconds trying to understand you know what happens if if we see a very similar kind of scenario happening in paper prices again. 23:16 23 minutes, 16 seconds No paper price going down is not necessarily bad for us but only thing is that when there's a very down market in 23:26 23 minutes, 26 seconds commodities then the differentiation between the larger player and the smaller player tends to go down which is not good. uh the difference between that 23:36 23 minutes, 36 seconds period and now you know apart from our own company being bigger and scale and all that stuff the difference would be 23:43 23 minutes, 43 seconds now there's a lot more protectionism in the world so it's not so easy for people to dump like right now even in India 23:52 23 minutes, 52 seconds there is a minimum import price that's been imposed on virgin paper board so there is therefore no dumping 24:01 24 minutes, 1 second possible So that negative effect is not really felt. Yeah. Okay. If there's dumping, it 24:08 24 minutes, 8 seconds affects the global markets. Um and it's not as easy to win new orders. But uh 24:19 24 minutes, 19 seconds I mean I don't know how transient these things are. Um and there is a lot of commentary coming from China about this 24:27 24 minutes, 27 seconds anti-involution and cutting down on excess capacity in many industries. 24:33 24 minutes, 33 seconds But it's easier said than done. But at least the government over there is cognizant of the fact that this is now a 24:42 24 minutes, 42 seconds problem. So I I I don't know the the the the way the 24:50 24 minutes, 50 seconds Chinese government reacts to these things is very complex and cannot be uh 24:56 24 minutes, 56 seconds understood or uh anticipated but I mean I don't think the scenario 25:03 25 minutes, 3 seconds can get much worse otherwise these mills have to start shutting down over there. 25:08 25 minutes, 8 seconds So uh but generally this protectionism trend is there. So it it is protecting 25:15 25 minutes, 15 seconds the market to some extent but that's mainly protecting our suppliers rather than us. 25:23 25 minutes, 23 seconds Got it. And so you so if there was a flip scenario where we had a you know a significant acceleration in paper prices 25:32 25 minutes, 32 seconds um you know how much of it would we have to absorb how much would we uh be able to pass on? Because I'm also asking this 25:41 25 minutes, 41 seconds that you know two of our larger competitors have gone through some issues uh otherwise a largely unorganized sector domestically. 25:50 25 minutes, 50 seconds Do we have a little more ability to stand our ground uh you know in such a scenario or we'll still have to bite the bullet? 26:00 26 minutes Um see I would point you to our history. 26:03 26 minutes, 3 seconds There was a significant increase in paper board prices in 2022 26:09 26 minutes, 9 seconds and we dealt with that. So I think there's no reason why we can't Yeah. 26:18 26 minutes, 18 seconds Okay. Perfect. 26:19 26 minutes, 19 seconds But I don't see that happening right now because that was because of the COVID and massive disruption. Yeah. Fair. 26:26 26 minutes, 26 seconds That can happen again if there's some sort of a war or something. But these things are now beyond anyone's ability to predict. Right. 26:37 26 minutes, 37 seconds Right. Great. Thank you. 26:44 26 minutes, 44 seconds Thank you. The next question is from the line of Raam Jen from VBD Asset Management. Please go ahead. 26:52 26 minutes, 52 seconds Uh hi Ashai. Uh good afternoon. So uh just on this uh last question uh further 26:59 26 minutes, 59 seconds extending. So MIP uh has been introduced uh on paper board from August. 27:07 27 minutes, 7 seconds Um and obviously uh uh if there is a import uh price directly is not there 27:14 27 minutes, 14 seconds then competing in the global landscape becomes little difficult. So is there any exception for uh exporters 27:23 27 minutes, 23 seconds uh that they can at least import at certain price because in a way they are uh in turn exporting so or 27:33 27 minutes, 33 seconds yeah yeah MIP is only if you're using for domestic use if you're uh exporting then you can import an advanced license 27:40 27 minutes, 40 seconds or and then uh reexport there's no problem okay so it's not uh uncompetitive for us even if I No no no no 27:50 27 minutes, 50 seconds no but then the domestic market otherwise would have been softer so we would have just bought domestic but 27:57 27 minutes, 57 seconds um it's okay I think overall it's fine okay the second one is with respect to creative uh now that you have acquired 28:06 28 minutes, 6 seconds it 100% um and you have full control you had control earlier as well but is there 28:14 28 minutes, 14 seconds anything which you are uh planning because that was something which was looking quite exciting in India uh 28:21 28 minutes, 21 seconds especially the electronics packaging and stuff like that. So any thoughts? 28:27 28 minutes, 27 seconds We have lot of plans and things in motion but in the past also I've uh sounded too upbeat and then investors 28:35 28 minutes, 35 seconds were disappointed. So then this time we'd rather just keep it to oursel until something actually happens. 28:41 28 minutes, 41 seconds Okay. Okay. But things are moving in in in that direction. Obviously constantly something or the other. It's just whether it happens on time or not. 28:51 28 minutes, 51 seconds Okay. Perfect. Okay. Thank you. All the best. 28:57 28 minutes, 57 seconds Thank you. The next question is from the line of Monarch AIS. Please go ahead. 29:04 29 minutes, 4 seconds Hello. Um am I audible? Yeah. 29:09 29 minutes, 9 seconds Yes. Uh actually sir, I just had one couple of wonderful questions. I want to understand from a domestic business uh 29:17 29 minutes, 17 seconds are we heavily dependent on the tobacco segment or is it diversified uh you know amongst other segments as well? 29:27 29 minutes, 27 seconds Yeah, it's quite diversified. 29:30 29 minutes, 30 seconds Okay. So even even if there was a volume impact it would it wouldn't be substantial on our uh you know line. 29:37 29 minutes, 37 seconds No. Okay. All right. So that's good to know. 29:42 29 minutes, 42 seconds Uh so could you also please just help me you mentioned that uh Europe had high tariff on uh flexible packaging which 29:49 29 minutes, 49 seconds has now reduced. Uh could you just help me understand what was the tariff earlier than what is the tariff now? 29:55 29 minutes, 55 seconds It was high single digit exact numbers not coming to mind but it was not in double digit but high single digit. 30:04 30 minutes, 4 seconds So that is now going to come to zero from I think next year that will be positive. 30:11 30 minutes, 11 seconds All right, understood. And are we are we still looking to you know proceed with any mergers, any acquisition that we were earlier, you know, considering? 30:22 30 minutes, 22 seconds Yeah, we are constantly working on something or the other. But then we are very uh uh unforgiving in our uh assessments. 30:33 30 minutes, 33 seconds So every time it's not possible always. 30:36 30 minutes, 36 seconds So uh but we but we keep trying something or the other is in motion at any point of time. So 30:43 30 minutes, 43 seconds yeah nothing I can tell you right now on the call. 30:47 30 minutes, 47 seconds Okay understood. Understood. So going ahead considering the this Chennai facility now you know we'll start seeing 30:55 30 minutes, 55 seconds operating leverage and with the grav cylinders also you know commissioned do we anticipate any uh margin expansion 31:03 31 minutes, 3 seconds led by these uh initiatives um 31:12 31 minutes, 12 seconds we we don't budget for it okay understood 31:21 31 minutes, 21 seconds Understood. All right. And sir, what would be your estimated capex for next year? FYI27. 31:28 31 minutes, 28 seconds It should be along the similar lines of this year about 100 cr or all right. Thank you. 31:39 31 minutes, 39 seconds Thank you. 31:42 31 minutes, 42 seconds Thank you. The next question is from the line of Anupama from Ratnatraa Capital. Please go ahead. 31:50 31 minutes, 50 seconds Uh yeah, I just uh had a question on your outlook on the exports like uh uh from now onwards where do you see uh 31:59 31 minutes, 59 seconds growth coming from and what countries like Europe, US specifically like 32:08 32 minutes, 8 seconds I believe I've answered this but um broadly we are positive on all these uh 32:15 32 minutes, 15 seconds markets and uh apart from that uh our immediate neighborhood and Africa these are also 32:24 32 minutes, 24 seconds positive but uh yeah definitely Europe US would be amongst the top priority 32:34 32 minutes, 34 seconds right and what percentage do they contribute right now do they I can't dive 32:40 32 minutes, 40 seconds okay okay yeah that's it thank you thank you thank Thank you ladies and gentlemen. 32:50 32 minutes, 50 seconds That was the last question for today. I would now like to hand the conference over to management for closing comments. 32:59 32 minutes, 59 seconds Thank you. I hope we've been able to answer all your questions, but should you need any further clarifications or like to know more about the company, 33:06 33 minutes, 6 seconds please feel free to contact us or CDR India. Thank you again for taking the time to join us on this call. We look forward to interacting with you next quarter. 33:17 33 minutes, 17 seconds Thank you. On behalf of TCPL Packaging Limited, that concludes this conference.