All Time Plastics (NSE:ALLTIME) Q2 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to All Time Plastics Limited Q2 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 expectation of the company as of 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 a listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. I now hand the conference over to Mr.

0:45 Kailesh Shah, Chairman and Managing Director for his opening remarks. Thank you and over to you sir. Thank you. Good afternoon, everyone, and thank you for joining us on our Q2 and H1 FY twenty twenty seven earnings call. Joining me on call today are Nidesh Shah, Full Time Director Manish Gattani, our CFO. We appreciate your continued interest in our company and your time today. Let me begin by briefly explaining the external macroeconomic context along with our Q2 and H1 FY 'twenty seven performance. Q2 FY 'twenty seven was among the most challenging quarters in the company's history. At the time of our last call in August, we anticipated a gradual easing of the West Asia situation.

1:34 Instead, the conflict escalated during the quarter and still remains unresolved. The impact on our business was felt on two fronts. First, average prices across our key polymers rose by 40% to 45% and prices that have begun to stabilize in Q1 of FY 'twenty seven moved sharply higher once again compared to Q4 of FY 'twenty six. Second, container shortages and port congestion disrupted both raw material inflows and export shipments, most acutely in mid August and September. Against this backdrop, demand for our products remain resilient. Revenue from operations for Q2 FY 'twenty seven grew 18% year on year and 8% sequentially to 174 crores.

2:24 Volume of polymers processed increased by over 9% sequentially to INR 6,910 metric tonnes. For H1 FY 'twenty seven, revenue grew 9.7% to INR $3.34 crores. The margin performance this quarter was impacted by three principal factors. The first relates to inventory. During Q1, our margins were supported by low cost raw material procured ahead of the conflict that inventory has since been fully consumed, and we were required to procure at substantially higher prices to service orders that had already been confirmed. The second relates to the timing of price recovery. On our Q1 call, we indicated that the benefit of our price revisions would be visible in Q2. Those revisions were implemented as planned. However, a fresh wave of input cost inflation followed after orders has been priced.

3:13 Export prices are fixed at the time of order and can be revised only on new orders. We, therefore, honored our confirmed order book at agreed prices. The third reflects a deliberate commercial decision. We have consciously absorbed part of this cost increase to protect the long standing customer relationships. We believe that safeguarding programs built over many years is in the long term interest of the company and its shareholders. Most of the gross margin decline is because we did not pass on the full increase in raw material costs. Our fixed cost has also increased relatively to H1 FY 'twenty six. This is on account of labor and staff costs at our new Khadarwada and Bamboo facilities, which we are carrying ahead of our full utilization.

3:59 As capacity utilization improves, we expect this cost to be absorbed over a larger volume base, supporting the operating leverage. Now coming to the working capital. The increase in working capital is temporary, and our inventory carries no slow moving stocks. Outbound shipping delays significantly increased our finished goods inventory in September. At the peak, more than 120 containers for our largest customer are awaiting shipments, and we even suspended production at our Silvasa facility for three days owing to storage constraints. Shipment resumed in October, the backlog of 40 foot containers for our largest customer has since then reduced from 126 to 32 containers and continues to clear steadily with the corresponding revenue flowing into Q3.

4:46 We also deliberately maintained higher raw material inventory given continued uncertainty over supply time lines. The increase in receivables was largely attributed to changes in banking arrangements of our two key customers, which temporarily delayed payments. Those collections are now being received. Our customer partnership continue to deepen. We are sizably increasing our business with one of our U. S. Customers, where several products from our stationary category now form part of their core assortment. This is a strong endorsement of our design and product development capabilities. The United States contributed approximately 10% of revenue this quarter compared with approximately 19% in Q1. This reflects the timing of shipments rather than any loss of business. Our is a project driven business and the geographic mix in any single quarter is influenced by order cycles.

5:38 Several significant U. S. Orders are scheduled for shipment in the coming quarters. The European Union contributes approximately 59% of revenue and The United Kingdom approximately 10%. The sales in October have been encouraging. Now coming to our domestic business. Our domestic business is emerging as a meaningful growth engine. On our Q1 call, we explained that domestic revenue was flat as we undertook a complete reset of prices with our customers. That reset was now yielding results. Domestic revenue for the quarter grew approximately 36% sequentially and 27% year on year, increasing its share of revenue to 19.5% from 15.5% in Q1. We added 36 new customers during the first half of this year and introduced a new hydration range of bottles yards alongside launches of many other product categories.

6:33 In October, we piloted a direct to consumer channel through our own website. We intend to extend the D2C channel of selected products supported by our targeted social media program. Domestic demand remains healthy, and we remain committed to our target of 30% to 35% domestic growth. The domestic business diversifies our exposure to global supply chain and geopolitical risk and aligns with our long term plan. And also, it will support our overall margin profile going in future. Now coming to our CapEx program. We have continued to invest in a disciplined manner. We have added low molding capability within our existing plant. This enable us to manufacture all our seamless products than traditionally injection molding what we used to do, including bottles, jars, containers in various materials like PP, PET, PETG and Triton with capacity that can be scaled in line with the demand.

7:34 At Katalwada, we have also initiated Stada based real time machine monitoring to enhance efficiency and uptime. This is one of the first of its kind, which will slowly develop and become a good tool for monitoring our processes. Our new 14 machine injection molding machines, adding approximately 1,500 tonnes capacity are expected to arrive in December 26, taking our installed capacity to approximately 42,500 metric tonnes. Further capital expenditure will be calibrated to demand. We remain prepared to add capacity, but we'll do so on a project to project basis, deploying the appropriate equipment for the confirmed programs. Let me now provide an update on our bamboo business.

8:20 Our Wahati bamboo facility operated through our wholly owned subsidiary, All Time Bamboo Private Limited, is fully installed. Commercial production will commence in mid November twenty twenty six, with sales beginning in Q4 FY 'twenty seven. We expect revenue from this facility in Q4 of FY 'twenty seven. The split processing model is now in place with engineering bamboo boards produced at Guwahati and value added engineering undertaken at Hasalbana. Our memorandum of understanding with Northeast Cain and Bamboo Development Council under the Ministry of Development of Northeast region provides a structured policy support entry into this ecosystem. Early customer responses has been encouraging, including acceptance of the color and finish of Indian bamboo. This gives us confidence in the potential of this sustainable new category.

9:15 I'm also pleased to share that the company has received an AT NOW Excellence in Compliance and Sustainability Awards 2026. In the near term, our priorities are threefold: resetting the prices across all customers, accelerating growth in our domestic business and bringing new capacity and new categories, including Bamboo and Hydration to full contribution. For FY 2027, we continue to target our revenue growth of 15% to 20% and increased capacity utilization. The fundamentals of our business firmly remain intact. Our scale and automation, our design capabilities, our long term customer relationships, our capacity headroom and a strong balance sheet with a debt to equity ratio of 0.15.

10:02 The EU India trade agreement, the evolving U. S.-India trade framework and the continued diversification of global sourcing towards India remains an important structural gives us important structural tailwind to us. We remain confident in the long term strength of our business. On the occasion of Diwali, I extend my warm wishes to you and your families for a joyous festival season and a prosperous year ahead. Would now request Manish to take through the financial performance in detail. Thank you very much. Thank you, sir, and a very good afternoon to everyone. I will now take you through our financial performance for the quarter and half year ended 09/30/2026. All figures are on a stand alone basis. Coming to our Q2 FY twenty twenty seven performance, revenue from operation for Q2 FY twenty twenty stood at INR174 crore.

10:52 This represents growth of 18% over INR147.4 crore in Q2 FY twenty sixteen of 8% over INR161.1 crore in Q1 FY twenty seventeen. This volume broadly stable year on year, the growth was driven primarily by higher realization reflecting raw material pass through and product mix. Gross profit for the quarter was INR 59.7 crore with a gross margin of 34.3% compared with 36.2% in Q2 FY twenty twenty six and thirty nine point five percent in Q1 FY twenty twenty seven. Raw metal costs increased to approximately 66% of revenue from up approximately 60% in Q1. As KLSB highlighted, the sequential decline in gross margin was primarily due to higher raw material costs, which could not be fully passed on to the customers on orders already confirmed.

11:46 Employee costs were INR 17.9 crore compared with INR 14.4 crore in Q2 FY 'twenty six and INR 17.1 crore in Q1 FY 'twenty seven. Other expenses were INR 28.1 crore compared with INR 22.7 crore in Q2 FY 'twenty six and INR 23.4 crore in Q1 FY 'twenty seven. The increase was driven principally by variable cost and sales promotion cost. EBITDA for the quarter was INR 13.7 crore with a margin of 7.9% compared with INR 16.3 crore and 11% in Q2 FY 'twenty six and INR 23 crore and 14.3% in Q1 FY twenty twenty seven. Profit after tax was INR 4.2 crore in line with Q2 FY twenty twenty six with a bad margin of 2.4%.

12:32 Now turning to our H1 FY twenty twenty seven performance. For H1 FY 'twenty seven, revenue from operations grew 9.7% to INR 35.1 crore from INR 305.4 crore. Gross profit was INR 123.3 crore with a gross margin of INR 36.8 compared with INR 37.8 in H1 FY twenty twenty six. EBITDA was INR 36.7 crore with a margin of 11 compared with INR 45 crore and INR 14.7 crore in the corresponding period last year. Profit after tax was INR 16.3 crore compared with INR 17 crore with a PAT margin of 4.9%. I will now take you through our key operating metrics. Volume of polymer process in Q2 FY 'twenty seven was 6,910 metric tons.

13:20 This compares with 3,623 metric tons in Q1 FY 'twenty seven, an increase of nine percent and six thousand sixty four metric tons in Q2 FY 'twenty six. For H1 FY 'twenty seven, volumes were 13,234 metric tons compared with 14,264 metric tons in H1 FY twenty twenty six. Capacity utilization improved to 67% in Q2 from 65% in Q1. Our installed capacity currently stands at approximately 41,000 tonnes. Moving on to our balance sheet and cash flow position. Our balance sheet remains robust. As of 09/30/2020, this net worth stood at INR 629.5 crore. Gross borrowings were INR 94.6 crore compared with INR 80.3 crore as of March 2026.

14:08 And the debt to equity ratio was 0.15x, cash balance, bank balance and liquid investments amounted to INR 82.7 crore. Working capital increased for the reasons outlined by Calispai. Inventory rose to INR 120.2 crore from INR 68.6 crore in March 26, principally on account of finished goods held back by shipping delays, price increase and higher raw material buffers. Days receivable increased to INR 100.1 crore from INR 74.9 crore, but the number of days have reduced from fifty days to forty six days. Our net working capital cycle stood at sixty two days compared with sixty days in Q1 FY 'twenty seven and fifty seven days at the end of FY 'twenty six. Consequently, net cash flow from operating activities for H1 FY 'twenty seven was negative due to higher working capital investment.

14:59 Capital expenditure during the half year was INR 24.3 crore, primarily towards machinery in the Katalwara facility and where capital working progress stood at INR 46.3 crore. We expect a substantial portion of the working capital buildup to unwind during H2 as the shipment backlog clears and collections are realized. We expect operating cash flow to turn positive as this happens. To conclude, Q2 was a difficult quarter from a margin perspective. The underlying drivers, however, are largely external and partly timing related. Demand in our order book remain intact, price divisions are underway and our new capacity domestic business and Bamboo are well positioned to contribute in the second half. On this festive season, I would like to wish all of you a very happy Diwali.

15:45 I would now request the moderator to open the line for questions. Thank you. Thank you, sir. We will now begin the question and answer session. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handset while asking your question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Shabti Gupta with White Pine Investment. Please go ahead.

16:33 Thank you for the opportunity, sir. My question is relating to inventory. So inventory stood at about INR120 crores as of Q2 versus the usual inventory levels of INR70 crores, how much comprises of finished goods? Can you start the question again a little louder, please? Yes. My question is related to inventory. So what is it is at INR120 crores currently versus the usual level of INR70 crores, INR80 crores. How much of this comprises of finished goods expected to be dispatched and recognized as revenue in Q3? Out of that, around 8 crore is of finished goods, which is to be recognized in the October month. October month. That was sales in.

17:19 So that will be recognized in October. Okay. Also given higher cost of raw material inventory we have, how should we expect the gross margin to trend over the next coming quarters? As of now, the raw material prices are at that level and the orders we are having the export orders, the rates are confirmed. So the margins will increase once the raw material prices goes down. We are negotiating with the customer to increase the prices. And once that is done, then the margin will definitely increase. For domestic market, we are going to increase the prices that is in process.

18:05 So it will definitely increase our gross margin. Also, sir, how much is the margin differential in domestic and export gross margin I'm talking about? The gross margin in export and domestic is the difference is around 12% to 13%. Okay. Also lastly on the container movement, so are you seeing an improvement in the container mobility and logistics in October 1, in terms of inventory level? See the container movement has improved significantly because the customers also face these challenges. So the backlog, which was about 126 containers has now gone down to only 32 containers as on date.

18:52 And now the export outbound shipments is moving nicely. Like inbound shipments, the improvement is there from past, which was had gone up to sixty five, seventy days for inward material to come in. It has now reduced to around fifty days. But our historic inventory inward arrival used to be thirty days, which is currently at fifty to fifty five days. Now there we will have to keep some stock in our system in the pipelines to secure that materials are available in time. Okay. Understood. Sir, lastly on the oil price is declining, are you thinking improving improvement in demand or should we expect to support your volume growth in the coming quarters? I think your voice just cracked. I don't know the problem in line. We couldn't hear the question properly again. I think with the crude oil price declining, are you seeing any improvement in demand and do you expect this to support the volume growth?

19:49 Yes. With the crude going down, two things are connected. The war impact also will impact the crude will impact the polymer cost for sure and the shipping cost because in our raw material price, there's a big content of shipping cost, which has increased for our suppliers apart from the crude cost. So crude cost is one part of it, but the shipping cost is actually taking a larger part of the cost increase for our raw material suppliers because they have to transit via land, road, shift codes and that is why the transit delays are happening. So we will see a double impact on both of Yes. The volume will come in. It will come in. Thank you, guys. Thank you. Thank you. The next question comes from the line of Ananya with TechWise Wealth Managers. Please go ahead.

20:43 Hi. Thank you for the opportunity. Sir, can I get sales volume in Q2 and in H1? Yes. Just a second, I will give you the sales volume. In Q2, the sales volume was 6,400 metric tons. And in Q1, it was 6,500 metric tons and total was 12,500 metric tons. Okay, sir. So in this quarter, about 500 tons is what you couldn't sell, right? Sorry, I didn't get you. Sorry, you've produced 6,900 tonnes and we sold 6,400 tonnes 500 tonnes is the difference.

21:31 Because of that container issue and a lot of things that we could not dispense. Sure. So this will come in. It was sales in transit also, a lot of metal was in sales in transit, it got reversed because PL were not issued. But now that has been done in the October month, so the sales is added in October. Okay, sir. So 500 tonnes should come in Q3 in addition to what you produce in Q3? Yes. In addition to what we produce, it will be Q2, which will come in Q3. Got it, sir. And sir, you said INR 8 crores was finished goods in this quarter, is that right? No. Finished goods were around more than that what INR 8 crores I told is in transit sales, which will be in this month. So finished goods was INR 42 crores in the Q2, end of Q2.

22:29 Yes. So INR 42 crores finished goods stock and INR 8 crore out of that INR 8 crore was sales in transit, which we have booked in October. Sir. Sir, I'm just asking because the INR 15.4 crore in the P and L that is changes in inventory. Should I take that to mean that it is booked in Q2, but you couldn't the revenue from that couldn't accrue in this quarter, certainly come in Q3? Exactly. Is that right? Out of 15.4, eight is what the sales is to be booked in October. Seven is what extra production which we have done. So that also will come in Q3. The sales will come in Q3. Sir. Got it. Sir, last question, can you share your contribution from largest client in this quarter?

23:24 59%. 59%. Okay. The next question comes from the line of Durali Gopani with Unique BMS. So firstly, on the margin point. So if I look at Q3 and Q4, will there be some pricing increase which will eventually lead to some gross margin improvement or Q3 will be somewhere near where Q2 was? No, we will get some increase possible because we are already changing prices and we are discussing with customers, but not at the historic levels for sure, but we will definitely be better.

24:22 Okay. Because in Q2, so when you give the sales volume, your volume growth was itself 5% and the pricing growth was only 3%. So you will see some of that happening in then Q3 and Q4. Yes. Okay. And, also, you have mentioned about this US customer, you know, where you are doubling the revenue with that customer. So how sizable will be this customer and what led to this this significant growth that we saw with that customer? No, the articles what we were saying, it will be nearly doubling. So we are looking at a program which went now goes into a core range, which was only a promotional range of those activities of stationary articles. Once any product goes into the core range, you get a continuous business year on year on and every monthly cycles.

25:14 So that way it will increase the sales for that customer. Okay. So currently, we do a very We are working with them for new products also different So categories within their company that will also give us a good business there. Right. And you also have mentioned about a lot of new products being launched in H1, including hydration. So this will be again for export and domestic market both, how do you see the growth? Primary, it is domestic market, jars and bottles because these are high volume articles with difficult to ship out in terms of plastic bottles. So this will be more of domestic business. Okay. And you're confident that this newer products in domestic market will also give us higher margins, which our own branded just from a competitive intensity point of view?

26:10 There is competency our competitor intensity is very severe in domestic business, but we do think that All Time will have a leverage in terms of its product presentation, quality and their distribution network as we are increasing, we'll see some positive actions on that side for sure. If you see the contribution overall from 15% has become to about 19% of our domestic business. And this as per our long term goal and plan what we have discussed, we are moving in that direction only or having that in future we do not have such kind of situations and this becomes one more leg to stand. Right. Right. And with this 14 new machines coming in, so will we reach our like whatever capacity we have decided or is there anything further happening in Q4 also, any new capacity or 40 to 500 is peak for the moment?

27:03 40 to 500 will be peak for the moment once these machines arrive. That will be the peak for us current months these 14 machines arrive. It will not be two hours. No, approximately. Yes. Right. Lastly, what kind of CapEx do you see in Bamboo? Like you have mentioned that INR25 crores, INR30 crores of revenue in calendar year '27. But beyond that, how do you see the CapEx and the revenue growing on that side? CapEx will not be that much because we have already done the CapEx. Most of the CapEx we have done, the revenue can take up to INR 65 crores with the CapEx what we have done. So additional CapEx we will be doing once we achieve at least 50% of the utilization. Because the CapEx will not take that much time to add the machine and capacity.

27:54 Once we reach at 50% that will add. Fine. And the new facility is we are planning to start up the new facility. All machines are getting commissioned, nearly commissioned. Officially, we will start up on November 16. We have our Puja and then we kick off that plant. Thank you, sir. To interrupt. Dirali, could you please shout back the queue for further questions? The next question comes from the line of Akshay Chedda with Canada and Quebec. Please go ahead. Sir. Sir, just thank you for the opportunity.

28:39 So just one question. Sir, how are we looking at the volumes for FY 'twenty seven in the plastic product side? Because in the opening remarks, you commented about 15%, 20% revenue growth, and there's a lot of inflation that is happening in FY 'twenty seven. So are we looking at a flat volume year on year? Or how are we looking at it? Because there will also be some contribution from Bangalore in the fourth quarter. So just some color on the volume side, sir. Yes. So we are looking at least at 7% to 8% volume growth production growth, at least 7% to 8% this year. So this implies that the second half outlook or the visibility for you is very strong.

29:24 Is that the right understanding? It is very strong. Orders are also there. So the thing is supply chain should not be a problem now. Got There's a lot of problem in Q2. So since proper, then definitely we are going to achieve what we are seeing. Got it, sir. Thank you so much. The next question comes from the line of Harshita with Flair Investments. Please go ahead. Hello, sir. Good afternoon. Is everyone audible? Yes. So I just have three questions. So does the capacity utilization guidance remain what is the capacity utilization guidance remain, sir? Will it hit 75% by Q2?

30:18 No, it will not be 75% in Q4, but definitely it will improve and we are looking at 75% utilization by Q2 of twenty eight. By Q2, okay. So are we gaining incremental business from China or Indian competition, sir? Mostly, most of our export business is coming from China. And the domestic businesses is coming from our network distribution increase and our customer base increase, what we are doing now in a conscious manner. So what is the difference in the freight prices for our customers in shipments from JNPT versus Chinese ports? Is it favorable to us versus competition, sir?

31:09 For the inbound raw materials cost, China has some distinct advantage because of their internal. They have not been impacted so much from the oil prices and the other things. They had their own setup. So we currently have a little bit disadvantage, but generally the advantage is right to that of about $100 $100 okay, of the flight size. Okay, okay. So with U. S. Customer order is double, sir, as the inventory at the end of the quarter, sir? We are seeing double in the sense more or less it will increase because the category has been added. It's one of our largest customers in U. S. A. Whom we are currently servicing. Okay. Is it double, sir? Double in the sense, it's low base customer currently. It's not very, very high base customer, but then sequentially it is going to be a good amount, which we will be able to close at the end of the year. And we see as a customer growth potential, what we are seeing historically when customers join with us, they are increasing at a rapid rate. So we are expecting that this customer will be our second largest customer by end of FY 2027.

32:17 Second largest. Okay. Okay. And the finished good inventory at the end of this quarter, sir? Finished good inventory was INR42 crores. Out of which INR8 crores was sales in transit. Okay. Sir, Okay. Last question, my bamboo FY 'twenty top line, how much can we expect, sir? Around INR 60 crores is what we are projecting with the capacity what we have currently installed. Okay. And last question, is the worst is behind us, sir? I hope so. How can I predict? But mostly, yes, because of the things what we saw in the news there two days back, we hope a lot of things which are uncertain will get some stability and we hope for a positive turnaround.

33:06 Thank you, sir. Thanks a lot. Thanks a lot for answering all the questions, sir. Thank you. All the best, sir. All the best to the whole team, Thank you, guys. Thank you. The next question comes from the line of Nishita with Sapai Capital. Please go ahead. Hello. Thank you for taking my question. Am I audible? Yes. A little louder, please. Yes. Yes. So I just wanted to understand more on our EBITDA margin front. So in this quarter, I understood the reason why we have had such low margin. And for H1, we've done overall margins of 11%. So do you think from this 11%, can we achieve better margins in H2 because we are also going to take price increases?

33:59 EBITDA margin will definitely increase with the volume we are projecting and we are expecting. So the EBITDA margin going lower is mainly due to the Katalwara and Bamboo facility additional fixed cost. So now the fixed cost is not going to increase with the volume increase. So the EBITDA margin will definitely be much better in H2. Right. So for overall, can we expect the margins to stay in the range of 12%, 13%? So it will be better than that. We expected it will be better than that. But yes, that is possible. Okay. Okay. Okay. And my next question is on our land.

34:44 So you mentioned that we'll do CapEx once we reach 50% utilization. And from your guidance, it seems like we'll reach 50% or more than 50% utilization in FY 'twenty eight itself. So like do you have if you can give some sense on how much capacity are we going to increase further in our Bamboo facility? So we currently we will double it. We will double it once we take the next step because few machines will have to be added. Some of the machines already we have as per the capacity for extra increasing. And we may also look at how to run more hours in terms of shift optimization because it's good business here. Right. So you mentioned that the expansion is not going to take that long. So can we expect this facility to double by end of FY 'twenty eight?

35:34 Yes, we are expecting that for sure. And it doesn't require that much CapEx as we are currently in the rented premises. So the CapEx will also be lower and as well as the lead time will also be lesser. What will be the case, if you could quantify? So we are expecting around any sort of 10 to 12 crores in machine. 10 to 12 crores. Okay. What is the total CapEx that we've done till now in the Bamboo facility? Around 18 crores we have done. We are expecting to do it 20 crores total. Okay. Okay. Understood. Yes. That is it from me. Thank you so much. Thank you.

36:22 Thank you. Before we take the next question, we would like to remind participants that you may press star and one The next question comes from the line of Sai Loshi with Equities. Please go ahead. Good afternoon team. Just Keshma and team, just I understand the volatility regarding crude and shipping and containers. But sir, we were guiding for 30,000 volume for this year in Q1. And it seemed like it was a contracted business as such we generally have a visibility for a year. Now we seem less confident about it. So could you just talk about what's really changed over this course of time? Is there some demand headwinds we are seeing or what is really happening?

37:15 Similarly, on Bamboo, I think our projections now at least the presentation says it's for CY twenty seven, the INR25 crores to INR30 crores versus where we were expecting this project to ramp up a little higher. So just if you can give us a little more qualitative as well as the thing directionally what's really happening will really help sir. Thank you. So with the current order book in hand, we are expecting to at least do 15,000 metric tons in the coming H2. The reason for first quarter H1, the lesser productivity was due to the supply chain disturbance in Q1.

38:00 So there we lost the production because of all this disruption. But now with the volume, we are expecting minimum 15,000 metric ton production in H2. As for Bamboo, Kalishma can guide? Nilan? Yes. So for Bamboo, the journey is more of a discovery, which we have already done and the domestic business as well as the other business with IKEA in the domestic market are already true for us. Moving forward, we would start investing into U. S. Market for sales. And European market would take a bit of a time of a couple of months for our FSC certification and all to go that. So we've been just waiting for that in time to go.

38:48 So the ramp up will be in that speed. Sure. No, sir, please help. Just qualitatively want to understand, is there any demand headwind? Are we less of is that one of the things which we are seeing in both the businesses or... No, I would say that on the demand side, there could be some headwinds come in because of some kind of price when the prices go beyond a certain point, you do get some headwinds in terms of certain articles and ratios. So but it is not something which we are seeing very dramatically happening. Otherwise, our machine utilization would not have improved or capacity is not booked correctly. There could be in terms of kg, we I have explained also in the past that sometimes products of higher kg realization when they are being produced, the tonnage goes up in our factory. But on the same machine, we can also run products which are lighter in weight because it requires that machine. So then the tonnage can come down, but the kilo rate realization goes up for that those kind of products.

39:51 So there are some on bamboo side, we don't see up to now anything which we have found that there is resistance or something like that. But we are being cautious when we are discussing all these points because the external situations are not that stable and we don't want to comment on anything where unnecessary it becomes a problem. Okay, sir. Appreciate that, sir. And secondly, on the pricing bit, sir, what is the kind of gap today versus our procurement price versus the kind of price hike which we've got? And at what level does that neutralize or just give you some kind of a We've been able to take IKEA is a rollover, largest customer is a rollover, which you are aware of. Our domestic business, we are taking a cost change in the second week of this month. We are trying to roll out that change.

40:51 And for other customers, we would have been able to pass only 50% up to now. 50% of the 40% to 45% increase that you've seen till now? Yes. What is the impact? Suppose 40% impact has a raw material content of 60% and then based on that 50% of that has been able to really been able to pass on. Sure. And so what do you envisage for the balance, meaning do you think we are in a position to take that or... We are working with the suppliers on customers on those fronts, but there are large programs. So there is a little bit of resistance in that area because they are looking at the China prices and China has been a little insulated from the shocks, which India has to expect right now. China is a little better than us today.

41:43 Understood. And just one clarity, sir. If crude starts correcting and the prices fall off, on the way downward, will we get some protection and margin benefit over from... We have already got commitment from all our customers who have not passed on that we will be recovering all those lost margins with them and they have committed on that. So we are not worried about that on the longer term with the customers who have not passed. We already told them this is the impact and this is the they have agreed to that and they had also they had limitations of their markets of UK and the other territories not doing so great and they have fixed prices they couldn't change so fast. So we have been in touch with the customers and we are sure that we'll be able to take the benefit as it moves down. Perfect. Thank you. And just last, sorry, just on the new product categories which you have put in the presentation, there are a lot of categories which are coming.

42:35 Are these mainly for domestic market or do we have what is the The idea is for the domestic market only because the growth potential in some of the products will definitely go to export also and domestic and the Middle East market, which we will try to now capture with the same kind of products. So those markets have identical kind of requirements, which will happen. And even the customer base increase are going into a B2C channel with some marketing and Instagram and other posts and other things being active on that profile, we'll start selecting good products to be shipped to B2C also to get more traction of the All Time brand domestically. Thank you so much and best wishes to your team for the rest of the year.

43:22 Thank you. Yes, we require all those wishes, the trouble which we are going through. Thank you. Thank you. Thank you. Thank that you may press star at 1 to ask a question. Thank you, ladies and gentlemen. We take that as the last question for today. For any further information, you may reach out to SGA. They are the Investor Relations Advisors. On behalf of All Time Plastics Limited, that concludes this conference. We thank you for joining us.

44:09 Now you may disconnect your lines. Thank you. Thank you.