All Time Plastics (NSE:ALLTIME) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to All Time Plastics Limited Q1 FY 'twenty seven Earnings Conference Call. This conference call may contain forward looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Note that this conference is being recorded.

0:50 I now hand the conference over to Mr. Kailesh Shah, Chairman and Managing Director. Thank you, and over to you, sir. Thank you. Good afternoon, everyone. My good afternoon, everyone, and thank you for joining us on our Q1 FY 'twenty seven earnings call. Joining me on the call today are Nilesh Shah, All Time Director Manish Gattani, our Chief Financial Officer. We appreciate your continued interest in our company and your time today. Let me begin briefly by explaining the external macro conditions, economic context along with our Q1 FY 'twenty seven performance. Q1 FY 'twenty seven demonstrated the resilience of our business amid a period of heightened volatility and our operating environment.

1:43 When we spoke during our last conference call at the end of May, we had flagged that the West Asia geopolitical crisis had began to affect us and the overall industry from March 26 onwards. Though this quarter, that crisis triggered an unprecedented strike in polymer prices at the peak, we were dealing with an increase of material costs going up by 40% to 50% overall base level. Alongside price, we also had content to do with supply availability, board congestions, extended transit times, containers non availability, which also disrupted our raw material inflows and our shipments. Against that backdrop, I'm pleased with how our business has performed.

2:33 Our revenue for Q1 FY 'twenty seven stood at INR 161 crores, up 10.5% sequentially over Q4 FY 'twenty six and up 2% year on year volume of year on year. Volume of polymers processed rose to INR 6,323 metric tonnes from 5,056 metric tonnes in the preceding quarter. An increase of over 25% and capacity utilization improved from 65% to nearly 65% from our 52% in Q4 FY 'twenty six at a 39,000 metric ton capacity. So we were able to improve across revenue, volume and utilization even as the disruption is ongoing.

3:21 Our gross margin for the quarter was 39.5%, considering the scale of the input cost increase. We absorbed a two forty basis point compression. We observed a base under two forty basis point compression from the 41.9% reported in Q4 FY 'twenty six. This is considerably better outcome and reflects how quickly our commercial teams move to renegotiate pricing across our customer base. On the export side, we work to bring price changes though as rapidly as each customer relationship allowed. With our largest customer, the arrangement is a structured pass through, but it operates with a rollover in pricing, which means the benefits of the revision agreed during the quarter will be fully visible in Q2 FY 'twenty seven.

4:08 Across the remainder of our export book, we have secured price divisions with substantially majority of our customers with the balance following our standard rollover mechanism over the weeks. In our domestic business, we adopted revised pricing in full and passed the increase to on to our customers. The raw material environment has not yet settled. As long as the conflict continues, the volatility will persist, not only in pricing, but in terms of shipment, availability and time lines of material coming inwards. Once the situation genuinely resolves, we expect margin recovery to become visible with a quarter of the environment normalizing. The demand picture, though, this entire period has remained sound. Our order book remains strong, and our customer forecasts have held firm through the period. This is the strength of our underlying demand architecture, long product life cycles, repeated SKUs, refreshes and embedded supply chains with global and domestic retail chains.

5:12 Our current installed capacity of approximately 41,000 tonnes gives us a meaningful headroom. That said, the strength of our order book visibility, we have placed orders we have also placed new orders for 14 new injection molding machines to add approximately 1,500 tonnes of incremental capacity expected to come on stream in Q4 of FY 'twenty seven. Our geographic mix this quarter reflects some genuinely encouraging developments. The United States contributed about 19% of revenue Q1 FY 'twenty seven against about 12% for FY 'twenty six as a whole. Notwithstanding the tariff environment, our U. S. Business continues to gain momentum with growth projects, growing project wins from our marquee accounts, including inquiries across new product categories.

6:03 We are also in active discussion on a further significant opportunity in the market, which if it converts, will materially change the shape of our geography for us. I'm not in a position to say more at this stage on the subject. But I want you to understand that our conviction on The United States is high. The European remains our largest market at about 52% of our revenue, while The United Kingdom contributed about 11% in Q1 FY 'twenty seven. Our domestic business continues to be one of the most important strategic priorities for the company, and it is progressing well. India contributed approximately 16% of revenue in the quarter. We continue to scale our brand and OEM presence and remain focused on delivering domestic growth of 30% to 35%, a business that stays central to our diversification strategy.

6:55 We are progressing on both fronts here, our own all time brand business as well as domestic OEM business. We are also developing product categories designed especially for the Indian consumer. Domestic market gives us genuine risk diversification against global supply chain, geopolitical volatility. And we shall also have an opportunity to improve our overall margin profile over a time. Our bamboo initiative also remains on track. Through our fully owned subsidiary, ALLTIME Bamboo Private Limited, we have taken a brand new 75,000 square feet facility at Madhanpur, Guwahati, where currently pre installation work for machinery, which is expected to arrive in August, is happening currently. This will serve as a dedicated bamboo board manufacturing unit with an installed capacity of 3,000 cubic meters per annum in the first phase.

7:48 The manufacturing machinery has now been shipped out of China and is expected to arrive in Guati by mid August. Installation is targeted for completion by the end of September with all preparatory work, including electrification already underway at the plant. Machines for downstream processing and finishing of end bamboo articles, which also will be installed at our facility, gives us a split processing model with upstream boards produced at and value added carpentry and finishing undertaken in Gujarat. On the basis, we anticipate commercial contribution from bamboo commencing from the fourth quarter of FY 'twenty seven. Customer response to our bamboo samples and the depth of our sustainability certification has been genuinely encouraging, and we continue to see this as a well timed agency that complements our core business.

8:37 I would also mention that our memorandum of understanding with the Northeastern Cain and Bamboo Development Corporation with the Ministry of Development of Northeastern region and our empowerment as a product and a market development partner give us a structured policy support entry into the ecosystems anchored initially on a nonexclusive and a nonbinding basis. For FY 'twenty seven, we target to achieve the utilization of approximately 75% at a capacity of 41,000 metric tons. Please read this as our current working assumptions, given how much still depends on the external geoprojectable environment. The fundamentals of our business are unchanged. Our scale, our design capability, our long standing customer relationship, our capacity headroom, our substantial strength and balance sheet and the structural tailwind of India growing a role in a global consumer sourcing hub, all remain firmly in place.

9:35 We remain optimistic in the fundamental strength of our business and our ability to navigate this period. We thank you for the support. I would like to hand over to Manish to further talk about the financials. Thank you. Thank you, Karishbeh, and good afternoon, everyone. Let me walk you through our Q1 FY 'twenty one financial performance. All figures I refer to are on a stand alone basis. Revenue from operation for Q1 FY 'twenty seven stood at INR 161 crore compared with INR 146 crore in Q4 FY 'twenty six. A sequential increase of 10.5% and against INR 158 crore in Q1 FY 'twenty six a year on year increase of 2%. We recorded gross profit of INR 64 crore with gross margin of 39.5% as compared with 41.9% in Q4 FY 'twenty six and thirty nine point three percent in Q1 FY 'twenty six.

10:34 As explained, the sequential comparison is attributable to entirely to raw material price inflation set against a partial and time lag revenue side pass through. Kindly note that on a year on year basis, gross margins was in fact marginally higher. EBITDA for the quarter came in at INR 23 crore with a margin of 14.3% against INR 22 crore and 14.8% in Q4 FY 'twenty six and INR 29 crore and 18.2% in Q1 FY 'twenty. So EBITDA grew 6.8% sequentially in absolute terms, while the margin held broadly flat. The year on year decline of 20% in EBITDA reflects the combination of the raw material environment and the higher fixed cost base from our newly commissioned Atalora facility.

11:24 This is the transition phase dynamic, and it will correct as utilization improves and gross fixed costs are properly. Pets stood at INR 12 crore with a margin of 7.5%, an increase of 28.8% sequentially from INR 9 crore and a decline of 5.5% year on year from INR 13 crore. Now coming to operating metrics. Volume of polymer process in Q1 FY 'twenty seven was INR 6,323 metric tonnes against INR 5,056 metric tonnes in Q4 FY 'twenty six, an increase of 25% and against seven thousand three ninety nine metric ton in Q1 FY 'twenty three. Capacity utilization improved to 64.9% from 51.9% in Q4 FY 'twenty six and compared with 89.7% in Q1 FY 'twenty six, which was measured against a smaller installed base for that quarter prior to the Catawara expansion.

12:18 This asset turnover was 1.58x, essentially stable against 1.59x in Q4 FY 'twenty six. On the working capital front, our net working capital cycle stood at sixty days in Q1 FY 'twenty seven against fifty seven days at the close of FY 'twenty six. A modest extension of free days is directly a reflection of the operating environment during the quarter. Inventory days moved to forty four from forty two as we deliberately carried somewhat higher raw material covering response to the supply availability challenges we were encountering and receivable days moved to 50 from 48, reflecting the shipment timing dynamics through the period. Table days were stable at 34. This can be seen as a well controlled outcome in a quarter of this nature.

13:05 Our balance sheet with debt to equity at 0.14x is very robust. To conclude the building blocks for the remainder of FY 'twenty seven capacity headroom, order growth, strength, the domestic build out, The United States momentum and the Bamboo vertical commencing in Q4 are all in place. With that, I will hand over the call back to the moderator for the Q and A session. Thank you. Should we begin with the question and answer session, ma'am? Yes. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touch tone telephone.

13:52 If you wish to remove yourself from the question queue, you may press 2. The first question is from the line of from Canara. Please proceed. Hello. Yes. Thank you for the opportunity, sir. Sir, just three questions from my side. We are not able to hear you. Akshay, sir, can you please be a little louder? Hello? Is it better now? Yes. Yes, sir. Sir, three questions from my side. So first thing, you mentioned that you are facing the shipment challenges, both inbound and outbound. So because you were not able to ship few of the goods, does it mean that it was a lost sale or it will flow through in the supply? It is not a loss. It gets into a supply delay, possibly a delay of a week or so or something like that. It never is a loss. So that will be flowing through in the subsequent... Yes, in the next month it flows through. Suppose in the month if the container shipping line containers are not available due to container shortages, then it flows up to the next week or the next vessel cycle.

15:03 Sir, could you quantify what could be this volume which should have been spilled over to the first quarter? So it was around INR 5 crores of sales out of this three something is export and rest is domestic. So INR 3 crore is around what will be added in July. Okay. Got it. It's completed in transit. And apart from that, there were container that factory, which were not in transit, that will also be added in this. So that is around INR 2.5 crore work. So total INR 5.5 crore will be added in this July. Got it. Sir, second question, I think we have guided for a 75% capacity utilization. So is it on 39,000 tonnes or 41,000 tonnes? It will be 41,000 tonnes for remaining nine months.

15:53 Got it. And sir, last question from my side, sir. Actually, we have seen a lot of employee expense going up. Obviously, it has to do with the Katalwara facility. So what could be the steady run rate for the balance three quarters if I have to look at the employee expense? Would the Q1 be the fair assumption for the entire year we annualize it or it will still go up? It is a fair little bit if increase will be very little bit, but Q1 will be fair to Q4. Okay. Got it, Thank you so much. Thank you. Thank you. The next question is from the line of Nirali from Unique PMS. Please proceed.

16:40 Yeah. Hi. Thank you for the opportunity. Sir, so you mentioned that we have seen raw material price volatility of upwards of 40%. So when we look at the quarter's revenue, what will be the pricing growth and the volume growth for the quarter? Just one minute. I will give you the... Sorry. I didn't get your question volume properly. So pricing has increased by 40%. That's what you are saying. And then you are a little So raw material prices increased by 40%. So I'm sure you'll... You would have passed some of the price increase. So what was that number? Like till what extent did we see pricing growth? And what was the volume growth? Because you said the polymer processed was has grew by 25% Q on Q. So that is not reflected in numbers.

17:26 So basically, the polymer overall, if I may say 40% to 50%, it could be ranging between that range at an average range, which could be one of the peak ones. The raw material content itself, what we have in our product mix is around 50% to 53% on the product mix side, the raw material content itself. So even if it's a mix is at around 40%, impact on the price can be around 20%. On the sales side, about 15%, you can understand. Okay. So to answer your question regarding the volume, so you are comparing the production volumes, but then the sales volume was more in quarter four. So the sales volume was around 5,831 ton.

18:19 And in this quarter, the volume is 6,090 sales volume. 6,090. And for the last quarter, it was 5,813? Yes, 5,813. So you can compare that and then you can see because if you see the production, then it will not give the clear picture. The sales volume is different in the last quarter because the sales was more from the inventory and production was lesser. Right. So if I see the volume growth was around 5% and the revenue growth that you reported was 11%. So there is a huge delta for the pricing increase yet to be passed to the customers, right? Yes, second quarter it is. So there is a time lag. So it will be passed.

19:08 Already it has been confirmed by the customer, but now it will reflect in the Q2. Okay. So once the situation normalizes, we'll see one quarter where we will see a very good growth on the pricing front because of the cost that is yet to be passed where the raw material would have stabilized. Is that understanding correct? So one quarter we should see some exceptional growth? Yes. Sure. Yes. Right. And so why is this volume... The sales volume? Just just a growth of 5%. So is it a demand issue? What is the issue for the sales volume to be so low? So Nirali, demand issue is not there. Mostly, it was because of that availability of raw material that time and the logistic problem. So now it will reflect in the Q2. So demand is what we were expecting. It is better than what we were expecting.

20:04 So demand is not an issue. The logistic is an issue and raw material availability was an issue. So that raw material availability hits out April and May and then June improved. So now in Q2, you will see the demand is better demand effect. So Q2 will be much better, yes. Okay. Okay. Fair enough. And you just mentioned that Khattalwara capacity to reach 41,000. So we were planning to add 6,000 metric tons for a year, right? We are still planning that only. So 1,500, we have visibility for the demand. So that we have ordered, that type of machines we have ordered. So that will arrive in Q3, and it will be fully available in Q4.

20:50 Remaining 4,000, we are planning as per the demand, we'll order. So we are planning to order in third quarter debt. So maybe by quarter fourth quarter end, we'll receive those 4,000. To clarify a little bit on this further to Manish, we run on some projects with large customers. So we don't want to jump the gun and put the money where the right equipment is also selected and not do any generic investment at this stage now that we have reached. So we would be focused on our selection of the right project and then take that part. But that we still are ready for doing that. So it's not a problem. So is it are you trying to say that we still don't have visibility for this 4,000 metric tons and hence we are delaying a little bit? No, it's not question of visibility. What happens is sometimes the visibility from the same customers, the product line changes and you might not have the right equipment to efficiently make it at the best price.

21:49 So it is better to wait for some time to take that call in a wiser manner with so much of volatility happening. With the volatility, we have been able to and the turnover, there will be no drop in turnover of the projected volume for the sales what we are planning with the equipments what we already have. That's not going to be a limiting block for us to reach our sales targets and numbers. Right. Because our business is such. Our business is not that it's a model where it is like that, yes. Right. And in your commentary, you also you want to grow the domestic business by 30%, 35%. But for the quarter, was that number flat?

22:37 Yes. For the quarter, it was flat because we went for a full price change with all our customers. And also we had to set up our capacities at Sadalwara to be operationalized to have the domestic business. Because domestic, we didn't do a step up pricing. We waited, we halted the production. We asked for a full change, which should be impacted to us because domestic, we will never get that transition opportunity of restating the prices with them, like how we are able to do with our export customers. So now the price change has been fully accepted and the orders are flowing in full flow from the domestic business also. Right, right. And for this bamboo part, so our initial thought process was INR 15 crore of CapEx and INR 60 crore of revenue from that part, the Phase one that you see. So that still holds true, right? Yes.

23:28 But then the CapEx might increase looking at the next phase. So yes, 15 crore is fine for INR 3,000 crores. Okay. Okay. So just one last clarification from my side and then I'll move on. So for the longest time, we have seen our revenue, quarterly revenue to be around this INR 150 crores. Putting the geopolitical issue aside, From the next quarter, if we see stability on the global side, can we expect a 15%, 20% revenue growth? So the demand we are having, definitely it is more than 15%, 20% increase. So demand is there. We have order book also in hand. So yes, if the situation doesn't change, so then definitely we'll achieve that 15%, 20%.

24:21 Okay. And the margin should also improve with that? Both will improve because Generally, can't comment on the margin, but EBITDA definitely will improve because margin we are doing this 39% historically also. So margin, we can't comment, but EBITDA will definitely increase if the growth is there of 1520%. Why can't you see on margin front? I didn't get your point. Like margin on the product mix also depends. And historically, we are doing between 39% to 40%. So we can't comment on that, but yes, if the sales growth, then the expenses will be absorbed and EBITDA will definitely improve. No, because when you want to grow domestic business, which is a higher margin business, then definitely it should reflect in margins also, right?

25:09 Base, the percentage looks higher, the base is smaller, right? Right. But 30%, 35% growth is a good growth for the domestic business. Yes, yes. That will increase, but the margin impact will not be that much. If 30%, 35% is also the increase, then we are talking about a 12% business or 13% business. Because domestic 16% is total, but out of that 3% is not our brand. So All that 12%, 13% business will definitely grow by 30%, 35%. And that will reflect in the GP margin also, definitely margin will also increase. But I can assure you that EBITDA will definitely increase because we are having a demand with low margin customers also in export.

26:03 So my point, just to be very clear, my point was Ma'am, not to be but can you please come in the follow-up question? Please rejoin the queue. Thank you. A reminder to all participants, anyone who wishes to ask a question may press star and one on their touch tone telephone. The next question is from the line of Ananya Najani from Thinkwise Wealth Management. Am I audible? Yes. Yes. So my first question is on domestic. We've seen domestic has been flat Y o Y and Q on Q at about INR26 crores. So I mean, what are your thoughts on that? And 35%, where are we getting the confidence for that?

26:53 What are the drivers for the same? Yes. So as already Kalishma expressed earlier, the change on pricing into the marketplace was one of the areas for which we needed almost about eight weeks. For the first quarter, we lost almost eight weeks. Quarter going ahead, we are quite upbeat because the order books are full, and we are definitely going to achieve our numbers. Okay. Have I answered you well? Yes. And also, can you give like a rough indication on how much price was passed through in Q1 and what's remaining, just in percentage terms, if possible? So for domestic, we have passed on 100%.

27:41 For our largest customer, there is a time gap of ASP, so that will also be reflecting this quarter only. And remaining customers, have done 50%, which we have indicated in the last call also that we have already done it. It will be a longer period so that there will not be a loss to us. Sir. Sir, also in July, there was quite heavy rains in Katharwada and that region. So any adverse impact on production that you have experienced? Can you talk about that? Yes. So we had some shutdown due to power disturbances at Katalgwatta facility for one point five days and at Daman plant for three days.

28:27 But as far as the assets are concerned, our people are concerned and our sites safety is concerned, we were all intact. Nothing major was nothing was reported at our sites and our sites are safe. In fact, the sites nearby to us sort of factory saw flooding also. Yes. Okay, sir. That's good to hear. Thank you so much. Thank you. The next question is from the line of Rajesh from Rajesh Capital. Please proceed. My question is on the BAMU facility. So you said that by the September, you will install the machines. So do we see a commencement of operations from third quarter in from fourth quarter?

29:15 Yes. So what will be the revenue we generate for the fourth quarter? So the revenue will be for the quarter, what we are expecting for the year was around 75% utilization of 3,000 CPM. So it will be around 20% of 75% utilization. So we'll be doing that much in that quarter. Okay. And one more question is on the Bamboo. So we once every once we produce the Bamboo and we get the orders, so we do see any cannibalization in plastic revenue also because same company or same customer will be buying the bamboo product from you. So... And we'll be releasing the plastic products. So do we see any cannibalization and flat revenue?

30:19 No. I will add. There is no cannibalization of the business will happen due to bamboo products introduction. There are different price point customers for both the product segments like a chopping board when plastic is a much a different price than a chopping board of bamboo. And the end consumer is different. In fact, this will help us to grow our business with our existing customers and bamboo will also open up doors for new customers who are exclusively doing bamboo work. Sir, what are the margins difference between the plastic and the bamboo? The margins on the bamboo business are much slightly few points higher basis points than our plastic business, correct. The next question is from the line of Agam Shah, an individual investor. Please proceed.

31:21 Thanks for the opportunity, sir. Quick question. So I missed your opening remarks. I joined in late. So I don't know whether you've spoken or not, but can you talk, so how is the current scenario of the demand? Are we back to normal shipping and in terms of pricing and everything for export as well? Yes. I did cover in my opening remarks, but I can give it for you for your benefit that the pricing pass on has happened to most of our customers, domestic 100%. Other customers where the rollover mechanism is there, the rollover quarter to quarter rollover delay is there. Otherwise, it is passed on. Some of the customers, what we have said, 15%, 20% of our business, we've been able to pass on 50% of the pricing, which is only restricted to about 10%, 15 of our business. But that is going to be given us later when the price momentum goes down, we will have more time for our recovery of that loss margin.

32:19 And are the shipments globally? Both are good. Forecasts have not yet deviated from any of our customers. The play is good. America market is also doing good. And shipments are going? America market is also doing good with our current customers. So that's also doing fairly well. Okay. So is it safe to say we'll be back to the 15% volume growth? Okay. And you also alluded that there will be some increase in CapEx for Mammu, right? This is... Marginal. Now, we have put this CapEx at 3,000 CBM space. And once this new automated machines and everything gets deployed, and then we might have some differences what Manish was trying to indicate, not much.

33:10 So that is for the same capacity only or for the newer capacity unit? Existing only. Slight machines because some of the machines we may like to special machines and special equipments to may we need to buy that we will take a call later. But currently, all the machines are now shipped out. So they are all in transit. That also had a lot of delay. Machines were ready and due to shipping containers not available in China, we lost three weeks, about maximum nineteen to twenty days. Okay. And any further plans to increase the capacity next year? Yes, yes, yes. We are very much continuously ramp this up because we are seeing good traction post our exhibition show and display of samples. We have good traction with our existing customers also and new customers have also shown interest in the product.

34:00 And the best part is that they like the Indian bamboo color and feel and the quality, which was one of our fears initially that people are used to seeing Chinese bamboo color, whether they will appreciate a darker shade or not, but that fear is now no more. Okay. And any newer products or newer material we are planning to launch or anything like that you would like to come in? Nothing specific to talk about in terms of new material. There are some grades of plastic here and there have changed. Otherwise, nothing new on the material side right now. Okay. Thanks, Vishal. Thank you. Thank you. The next question is from the line of Anand Mundra from MyTemple Capital. Please proceed.

34:57 Hello. Yeah. Thank you for the opportunity. Sir, I wanted to just understand that our assumption of 75% capital... Capacity utilization for this year, is it contingent on the geopolitical situation normalizing further or now those has kind of adjusted and just in confident of achieving this even if the geopolitical situation... I think we will be able to achieve it. We don't see contingent of that only what the contingency lies in supply delays. That's our biggest challenge today. That's the only challenge what we are facing in for our materials. We don't see any other issue because of the prices up, the orders will slow down or something like that. That challenge is not there. People have bought in now.

35:46 Okay. Okay. And sir, on the incremental capacity that we are adding and we plan to reach to 52,000 soon. So incremental capacity, the anchor customer is again going to be the largest customer that we have? Or do you see U. S. Customers contributing more? Concentration of The U. S. Customers will definitely be more. But our largest customer is also as it's in public news, the largest customers have already showed a very aggressive expansion plan in India in the next two years, which will definitely help in growing our India domestic business with the largest customer. All right. So elaborate on what their plans are for the domestic market and how much does each store add in terms of revenue for us?

36:34 Historically, we can see that around each store here is around 40 lakhs. We can at a conservative side, I'm saying 40 lakhs, but generally it is 50 lakhs, but we it all depends on the size of the store and the model what they open up per month per store. Okay. And how many stores are they trying to open over the next two years? That's what they on public, they have announced 25, 22 or 20 yes, yes, they have announced twenty, twenty five. But possibly if two years does not happen, three years, it will definitely happen. Yes, two to four years, whatever is the time that's in public news. Yes. So that will give us a steady growth. And with that, we also foresee some of the import substitution items, which currently they are importing will also start adding to our range for our largest customer.

37:24 Because currently, those imports those items because of less stores, and those are expensive. Got it. Got it. So the incremental capacity is going to be directed with customers on the export side? No, incremental capacity more will be towards The U. S. Market than our new customers. Okay. Thank you. That's it from me. Thank you. The next question is from the line of Anuparak from Anandrati. Please proceed. Yeah. Hi, sir. So my first question would be on the demand outlook. What are we expecting for the consumer hardware Ma'am, can you please be real louder? We can't hear you properly.

38:18 Am I audible now? Yeah. Much better. Yes. So on the demand outlook for the consumer category, like what are our expectations for FY 'twenty seven? And in terms of seasonality, if you can highlight which quarters are the strongest for us? There is not that much seasonality in our business, but H1 and H2 as a difference, so H2 is more and H1 is little less than H2, that one seasonality is not there in our business. And as of now, we are having a strong order book. So we are expecting at least 15% to 20% growth in FY twenty twenty seven.

39:06 Okay. On a consolidated basis for the company? Sorry, did you hear And sir, my second question is, can you please highlight on the competitive intensity in the B2C sales? Like is the unorganized segment struggling because of the volatility in those raw material prices and whether they have taken similar price hikes like us? It's not troubling us that much. I'm not going to accept though it is there. But in fact, we get a better opportunity at these kind of time because of high output, high cost, the working capital stress is there on the smaller unorganized sector, which gives us a better opportunity to enter. And when we are selling in large volumes to large retailers, they also now understand that the brand and the packaging and the product functionality are very, very important. So they are also looking at different strategies to select suppliers.

40:04 Understood. Yes. Thank you so much. Thank you. The next question is from the line of Dev Mehta from Unique PMS. Please proceed. Hi, sir. So we have done 18% to 19% of EBITDA margins in FY 'twenty four and FY 'twenty five. So when are we expecting to get to those levels again going ahead? Once we achieve 80% utilization of our capacity, we'll be there. Okay. So for FY 2027, we can expect in the line of 16%, 17%?

40:52 Better than last year, definitely. I can't comment whether it will be 16%, 17%, but it will be better than what we have done last year. Okay. But directionally 18% to 19% is the sustainable margins, right? Sustainable margin, 80% utilization of the capacity. It is sustainable. Okay. Yes. Thank you. Thank you. Thank you. The next question is from the line of Agam Shah, an individual investor. Please proceed. I I have the same question on the margin front. You just transferred to the previous participant. Okay. Thank you. Oh, yeah. Thank you. Thank you. A reminder to all participants, anyone who wishes to ask a question may press dial and one on their touch tone telephone.

41:44 Repeat, anyone who wishes to ask a question may press dial and one on their touch tone telephone. Ladies and gentlemen, as there are no further questions, with that, we conclude today's conference call. On behalf of All Time Plastics Limited, that concludes this conference. We thank you for joining us, and you may now disconnect your lines. Thank you, all of you. Thank you.