Indo Count Industries (NSE:ICIL) Q2 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to Indo Count Industries Limited Q2 and H1 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 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 the 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. Mohit Jain, Executive Vice Chairman. Thank you, and over to you, Mr. Jain.

0:50 Thank you. Good afternoon, and a very warm welcome to all of you joining us for the Indo Count Industries Limited Q2 and H1 FY 'twenty seven Earnings Call. I'm also joined by our Group CFO, Mr. Moli Dharan Manish Bhatia, our CFO and Strategic Growth Advisors, our Investor Relations Advisors. We hope you had the chance to review the financial results and investor presentation available on the stock exchange and on our company website. Before we begin, on behalf of Indo Count Industries, I would like to wish everyone a very happy Diwali and a happy, healthy and prosperous New Year. Coming to the company's consolidated performance. Continuing with the Q1 momentum, we have delivered our highest ever quarterly performance in Q2.

1:40 The results reflect the benefits of our strategic investments, expanding business portfolio and improving operational efficiencies. Total income for Q2 FY 'twenty seven stood at $16.99 crores compared to INR $10.82 crores in Q2 FY 'twenty six, registering a growth of 57% year on year. And on a sequential basis, the growth was 39%. EBITDA more than doubled to INR259 crores on a year on year basis from INR123 crores, with margins expanding to 15.3%, well above our full year guidance of 13%.

2:26 The performance was driven by market share gains, increased wallet share, strong branded business momentum and increasing contribution from our newer businesses. Our continued focus on sweating our existing assets, optimizing resource utilization and driving operational efficiencies has resulted into margin expansion. More importantly, the benefits of our strategic investments are now translating into meaningful scale, further strengthening the depth, breadth and overall quality of our business. Core business performance. Product mix, market share gains and increased wallet share from existing customers drove strong revenue in our core business.

3:12 The industry continues to navigate tariff uncertainties, evolving trade dynamics and varying consumer demand across markets. Our focus remains on strengthening our product portfolio and improving operational efficiency. We are also driving better utilization from existing manufacturing capacities to enhance returns from our asset base. Going forward, our priorities remain towards strengthening the core bed linen business, increasing customer wallet share and gaining market share. Coming to our Non U. S. Core business. The U. K. And EU markets offer significant growth potential with an addressable opportunity comparable to The U. S. Market.

3:57 Our established relationships with leading retailers provide a strong platform to expand our presence and increase our wallet share. We also expect free trade agreements to further strengthen our competitiveness in these markets. As indicated in our previous earnings call, we expect our Non U. S. Revenues to grow by over 20% in FY 'twenty seven. New business performance. Our new businesses are increasingly contributing to Indo Count's growth and expanding our presence across the home textile value chain. While bed linen remains our core strength, we have expanded into utility bedding, branded businesses and other home textile categories such as quills, comforters, blankets, towels, curtains, etcetera. This enables us to engage with customers across a wider product portfolio and address a much larger market opportunity.

4:50 This progress is clearly reflected in our performance with our new business generating quarterly revenue of approximately INR502 crores and contributing approximately 30% to total income. Notably, we have already achieved 60% of our FY twenty twenty seven revenue guidance, demonstrating strong momentum and the growing scale of these businesses. A key development during this quarter was the expansion of brand Vamsutra beyond direct to consumer platform into the broader U. S. Retail markets. This strategic move aims to enhance brand visibility, reach a wider consumer base and unlock new growth opportunities through deeper retail penetration.

5:39 Going forward, we will focus on scaling these businesses, continue expanding product offerings and strengthening our distribution across markets. Update on our Hillard flood claim. During the quarter, our Hillard manufacturing facility in Gujarat was temporarily impacted by unprecedented rainfall and flooding. All the assets in the facility, along with the business interruption losses, are covered under a comprehensive insurance policy. Following the damage assessment, the insurance company has acknowledged the claim and interim payment of INR 14.99 lakhs was approved after the quarter end pending final settlement. Based on our assessment of the losses and the progress of the insurance claim, we have recognized in the profit and loss statement an inventory loss of INR 45 crore 2 lakhs, net of salvage, along with an equivalent insurance claim as exceptional item in the statement of profit and loss.

6:44 To conclude FY 'twenty seven guidance and road map ahead, let me now update you on our progress against FY 'twenty seven guidance. We remain confident of achieving our full year targets with H1 performance providing a strong foundation. On the volume side, we achieved 51,000,000 meters, approximately 49% of our full year guidance of 105,000,000 to 110,000,000 meters. On the revenue side, total income stood at INR2923 crores, achieving approximately 52% of our INR5500 crores guidance. On the EBITDA margin, H1 EBITDA margin stood at 14.4%, already exceeding our full year guidance of 13%.

7:32 Given the strong H1 performance, we believe we are well positioned to exceed the guidance given for the current year, both for the top line and the EBITDA. At the business level, our core business H1 revenue of INR 2,033 crore helped us achieve approximately 50% of the FY 'twenty seven target of INR 4,000 crores. New businesses. H1 revenue of INR $8.90 crores achieved nearly 60% of FY 'twenty seven target of approximately INR 1,500 crores. Our balance sheet has further strengthened with net debt declining to INR $5.18 crores and net debt to equity at a healthy 0.2x, marking our lowest ever net debt position.

8:23 Annualized ROCE stood at 21.4%, while ROE was 15.3%, reflecting improved capital efficiency and enhanced returns. Overall, the combination of strong growth across our businesses, improving margins and a strong balance sheet positioned us well and gives us confidence in outperforming our FY twenty twenty seven guidance. With this, I now hand over to Manish to take you through the financial numbers. Good afternoon, everyone. I will take you through the key financial highlights for Q2 and H1 FY 'twenty seven before we open the floor for questions. Q2 was a strong quarter with robust revenue growth, significant margin expansion and continued improvement in our balance sheet.

9:13 On revenue performance, consolidated total income grew 57% year on year to INR $16.99 crores in Q2 FY 'twenty seven compared to INR $10.82 crores in Q2 FY 'twenty six. For H1 FY 'twenty seven, total income stood at INR 2,923 crores compared to INR 2,049 crores, registering a growth of 42%. On profitability, consolidated EBITDA for Q2 FY twenty twenty seven more than doubled to INR $2.59 crores compared to INR 123 crores in Q2 FY 'twenty six, with margin improving by three eighty basis points to 15.3%. For H1 FY 'twenty seven, consolidated EBITDA grew by 23% to INR $4.20 crores compared to INR $2.43 crores in H1 FY 'twenty six, with margin expanding by two fifty basis points to 14.4%.

10:08 The improvement was driven by higher capacity utilization, better cost absorption and operational efficiencies. All three utility bedding facilities in U. S. Have ramped up and are currently operating at utilization level of over 65%. Consolidated PAT for Q2 FY 'twenty seven grew by 2.5x on year on year basis to INR 132 crores compared to INR 39 crores in Q2 FY 'twenty six. For H1 FY 'twenty seven, PAT stood at INR 0.95 crores compared to INR 78 crores same period last year, a strong growth of 150%. Balance sheet and returns. We continue to strengthen our balance sheet with net debt declining to INR $5.18 crores as of September 2026, our lowest ever level.

10:53 Cash and cash equivalents increased to INR $3.15 crores compared to INR 114 crores at the end of March twenty twenty six. Annualized ROCE stood at 21.4%, while ROE was 15.3%, reflecting improved capital efficiency and stronger results. To conclude, Q2 and H1 FY 'twenty seven demonstrate strong business momentum, improved profitability and a healthier balance sheet. With this, I would like to open the floor for questions. Thank you. We will now begin the question and answer session. The first question comes from the line of Sunny Vishay from Peel Capital. Please go ahead.

11:50 Yes. Thanks for taking the question. I'm just trying to understand a couple of dynamics here. So given that the input costs continue to rise and while we see the demand is steady, so do you think the impact of the rising input cost is already factored in? Or can we expect some pressure going there? Yes. So main input cost, in our case, cotton and cotton related products, prices have been going up. And normally, we keep inventory of about four to five months.

12:37 So that's acting as a cushion period till we go back to the customers and ask for price increase. So naturally, whenever there is a abnormal increase in the prices, we can go to the customers and ask for increase. And just to add that the impact of the previous raw material price increase have already been passed on to the customers. Okay. So how long does it take to pass it on? So what I'm trying to understand is that there is a possibility of some pressure in the coming quarter or the second half. Is that a possibility? So is there a downside risk to the margins that you already achieved is what I'm trying to understand? No, there won't be any pressure on the margins.

13:24 As you know, we have been doing the business as a normal business practice. If there is any significant increase in the input cost, then we go to the customers. Otherwise, we're able to maintain this margins. So as we mentioned that we keep a buffer of four to five months and cost will get passed on to the lag of quarter one or within one or two quarters. So that's why it will not have a major impact on profitability or margins. Okay. So basically, your pricing is done based on the inventory that you have. Understood. Great, sir. So thank you and best of luck for the next second half. You. Thank you. The next question comes from the line of Abhishek Shankar with ICICI Direct. Please go ahead.

14:15 Yes. Thanks for taking my question and congrats on the very good set of results. So first of all, my question is regarding the operating environment. I just wanted to understand that keeping in mind that we have seen the midterm elections pan out and we've seen the results now. So how do you see the operating environment in U. S. Going ahead? And how are the order book trends going into H2? Are you seeing a stable environment going ahead? Just wanted to get a bit of explanation on that. So about the midterm election results, it's been a very recent one. So we are unable to comment at this point of time. What we, of course, feel is that the business will be as normal as what has been.

15:09 So we don't see any sort of a everything is going to be positive, we feel. Order book position is healthy. So that's the reason why we have our guidance stays put. We have also mentioned that we'll be exceeding the guidance which we have given for the year. Okay, sir. And my second question, again, if I've missed out, I'm sorry if you answered this before. My second question is was on the gross margin side. So on the gross margin side, what exactly happened that you have seen a decline there? Of course, EBITDA margins have significantly improved. But what has happened on the gross margin side? So gross margin should be looked at on annual basis. Don't go with quarter by quarter.

15:55 And there is an impact of product mix, so GP margins can fluctuate, but they should range between 50 to 55% on an annualized basis. Okay. Okay, sir. Just one last question. I just wanted to just get a bit of clarity. So we have seen a bumper quarter this year. If I see the Y and Y basis, we've seen a bumper quarter. So I just wanted to understand what has been the mix, mix in the sense that has this been driven a lot by new customers who got added? Or is it just that the existing customer wallets that have grown so much that has driven the whole performance? So both, I think, have gained market share also and we have gained customer wallet share also.

16:41 Okay. Okay. I'll get back into the queue. Thank you. Thank you. Next question comes from the line of Jiten Doshi with Inam Asset Management Company Private Limited. Please go ahead. Anilji and Mohitji and team, many, many congratulations on what you have achieved. I think the entire strategy, what you spelled out two years ago has unfolded beautifully. Just very proud that Indian company has been able to buy out a brand in The US and create history. We definitely believe that, you know, the numbers that you spoke about in terms of your revenue guidance, I think you should achieve much, much more.

17:30 But I think given the environment and given the way you all have been able to establish a manufacturing presence in The US, which is commendable in a very short time and ramped up that capacity so well, I would believe that from this year, that is F 27 to F 30, it wouldn't be inappropriate to expect you to double the entire company size in three years. Would that be a realm of possibility? Thank you, Jason Vai, for your kind words. We, of course, are on track to surpass the guidance which you have given. And we hope that this momentum continues into the next few years also.

18:18 We wish that we are able to achieve the goals probably which you are also guiding us. We'll be able to achieve those numbers. No, there is no reason because you have been the only company who's gone there, acquired brands, built the front end, you've built a manufacturing base, you've done extraordinary well by building capacity in India. And I think on your core business, we are seeing that you've already made a 18% margin. And, you know, that margin is, again, a new high compared to the recent years. Now given the current situation, the FDA is opening up, etcetera, would it be possible to... For us shareholders to at least dream of a doubling doubling in, you know, from '27 to '30?

19:03 Because there's no reason why US demand won't bounce back. You won't see growth in other markets where the FDA has opened up, plus you're getting ready with the manufacturing capacity suggesting that all of this should lead you to a 20% EBITDA margin with 10,000 crores plus of top line. I mean, this is our expectation, and we don't see any reason why a capable team like you all will not achieve it. Jitin, as of today, we will continue with the guidance which we've given by CY 'twenty eight to develop our revenue from FY 'twenty five from INR 4,000 crore to 8,000 crore. Naturally, with whatever you're saying, it goes in our mind and then we'll work it on and be hopeful, yes, what we are just saying to... We will definitely work towards achieving greater I think, you know, there is no reason for us to believe that this will not happen. It's just that country on the country, we as shareholders would challenge you given such great capabilities, such a great intent and kind of execution that you have demonstrated and the kind of facilities that you have created, I think, first of all, congratulations.

20:12 It's hats off. You have done an extraordinary job. From this, I think this should make you one of the fastest growing companies in your space globally. That's our expectation. So that's what we believe. And I think margin should ramp up. Where do you see your margins ramping up in the next years as you go into utility, 100% utilization? Where can margins really go? Sir, right now, we are saying for this year, our guidance will exceed on both on top line as well as on bottom line, EBITDA percentage also. For next year, we'll come back with a proper numbers and guidance. No. I think you all have done an extraordinary job. We really do believe that you are heading towards the INR 10,000 crore top line with a 20% EBITDA margin. I just hope you don't disappoint us out there because I think with such a capable management doing such extraordinary execution, anything... You know, to expect anything less would not be acceptable. So, anyway, all the very best.

21:12 Continue with the growth that you have shown and demonstrated great execution, and we look forward to you reaching 10,000 sooner than later with a 20% EBITDA margin. All the very best. The next question comes from the line of with Lucky. Please go ahead. Sir, I have three questions. One, this 8,000 doubling of revenue and two zero two eight, I am assuming this two zero two eight is actually a calendar year two zero two eight. Yes. It's a calendar year two zero two eight. Yeah. Okay. My second question is, what is the margin difference either at the GP or at the operating between core product and the new business the core business and the new business? The core business, we have already given a guidance that it's about 15% EBITDA.

22:07 And this quarter, it has shown even better than the 15%, which we had spoken about in the start of the year. As far as the new business are concerned, it has not come up to the same level. But over a period of time, I think in the next few quarters, it should catch up. We would see by, I think, next two, three quarters, we should be able to still come to the same level as such. Okay. And my third question is, what is the extent of non U. S. Business in the core business in H1? So when you do INR 2,000 crore and when you do the volume number, which is mentioned, what will be the non U. S.

22:53 Business size in it? As of today, our non core U. S. Business is non core non U. S. Business is around 30%. Okay. This, let's say, now over the next three years, based on whatever FDAs, etcetera, that India has signed. So this core non U. S. Business, which is about 30% today and whatever the size is, what it should be over the next three years? It should change. From family 30 ratio, it should go to sixty-forty, we'll see. But yes, the ratio will change on core business. I think our core business our noncore business is also core non U. S. Business is also growing by 20%.

23:41 So we would expect this ratio to be in favor of the non core U. S. Business. Sixty-forty means 60% will become non U. S. Core business within the core, right? That's how sixty-forty, right? Today, what it is? As of today, percent is So 70% might come down to 60%, but we don't want to put any number right No. Yes. It will do. Something will change. Yes. Okay. And my last question is on The US business, on the core US business, we have come back to the size. Have we come back to the size where we left two years back, which is already in FY '25? Or it is the non U. S. Business, which is actually bringing you back to the 4,000 crore revenue or the INR 100,000,000 meter volume?

24:37 Say for FY 'twenty five, we achieved a volume of around 106,000,000 meters. Correct. So this year, again, are going back to almost the same level. So my question is, sir, has The U. S. Business within that come back or it has not come? Yes, both put together. Okay, sir. I'll come back. Thank you. Thank you. Next question comes from the line of Harsh Mittal with MK Global Financial Services. Please go ahead. Yes. Thank you for the opportunity. Good afternoon, Firstly, congratulations on the superb second business. I have a few questions. First question, and apologies if this has been answered, But despite a sharp jump in the realizations, so this jump in realization is basically covering your raw material expenses?

25:34 Or is it something related to refunds pertaining to The U. S. Tariffs? This is the first question. Thank you. No. Refund of tariff is not included in this. So it's basically overall operating efficiencies. And product mix. Second question, sir, is the change in the working capital. So this first half, we have seen outflow in the working capital at working capital. So any compared to the last quarter, any explanation of the same? Why has it changed so much? No. In fact, the working capital cycle has improved from the from March, if you see.

26:29 The number of days has come down by at least three weeks. So the overall cycle has improved in the as of September 30. Next question comes from the line of Prajna Chunjwala with DAM Capital. So my first question is on account of average realization. Now what is the reason for sharp improvement in average realization? What kind of product mix improvement has happened? And could you give some idea about the same to have a better understanding?

27:23 Prerna, basically, product mix in the sense that it's a higher value product, which we have orders which we have exhibited in this quarter. That's been this one, contribution towards this one, the average utilization going up. So the follow-up on this is that, is this sustainable or this will change as per quarter then we should not put in much thought to this quarter's average realization? The product mix is sustainable. So in any case, as earlier, we mentioned that product relations should not be looked at only for the quarter as such. So the overall this one, margins will gross margins will get maintained over a period of the year.

28:13 Okay. Second question is on the new businesses. After the sharp improvement in new businesses, do we continue to maintain the two third, one third ratio between utility and USA brand business or there is any change in this quarter? As of now, yes, same, twothree, onethree between utility and branded. Okay. So the sharp improvement in the branded business has come because of Vamsutra. Is it fair to assume that? Yes. Vamsutra has played a big role, yes. Okay. Understood. And third question, lastly is the Greenfield plant also is operating at 65% utilization or you've been talking about 65% or at an average level on total capacity?

29:04 No, all three plants are 65% plus. 65% Yes. So all three plants are doing higher than the 65% utilization. Understood. Sir, one macro question on U. K. And Europe. You've answered the geographic distribution. I just wanted to understand how are the consume... You know, customers reacting to the FTAs now that, you know, we've been already three to four months into implementation. So what kind of improvement, negotiations and product development, what kind of products you are actually negotiating for?

29:50 So some highlights on U. K. Geography should be helpful to understand what we can expect in Europe as well? So Preetam, U. K. FTE was implemented in July. EU is yet to happen. But as we mentioned in our last call also that we have seen much better interactions with the customers. So there's lots of inquiries already coming in. So there's a lot of interest in this geography. So let's see when this starts coming into the funnel in volumes. Understood, sir. Thank you and best wishes for festivities and for future performance. Thank you. Thank you. Thank you. Next question comes from the line of Ashish Vanwari with Nuvaama. Please go ahead.

30:39 Sir, my first question is regarding the current year guidance. Given the H1 run rate and the soft days that we had last year, don't you think it's 5,500 crores is kind of on the lower side of what we can achieve? Yes. We believe that we will be exceeding our guidance for this financial year. As of today, we believe so. Sir, if you can provide any color as to what to expect on that front, that would be great. Secondly, sir, on the volume front as well, if I see that our current utilization stands at about 73 odd percent and given that the UKU is just opening up, are you forcing any CapEx or is any CapEx plan in is any CapEx and plans on the core business side in the next, let's say, six months or one year's time?

31:59 Yes. On the guidance which we had given in the we gave this guidance much before the year started. So the guidance of INR 5,500 crores for revenue. Over a period of time, we are seeing a good business adding to our kitty. So we are seeing this we'll be able to surpass this at this point of time when we have seen the performance in the six months. So as far as the utilization is concerned in the core business, yes, about we are we have some still some space or capacity to be exploit.

32:48 The management has earlier also the earlier calls, we have told that at appropriate time, the Board would take a decision on that further CapEx for adding any capacity. So Ashish, just to add that to reach to our guidance of CY twenty eight of INR 8,000 crore, we don't need any growth CapEx for that. But beyond that, we'll see that. Sure, sir. Just one last bit. Sir, can you help understand how are the margins in the newer business segment in the current quarter? I understand that we achieved breakeven sometime back in Q4. So just wanted some color on that. The new businesses, the EBITDA margins are at the lower double digit at this point of time. And we expect when the full scale of operations comes up, we should be able to reach the same level of margins with the core business has.

33:56 So overall, the blended margin for this year, we have guided a given in 13%. So overall, we should be exceeding that. And in near term, when we reach to a full capital utilization for new business, we should be equal to our core business, which is 15%. Sure, sir. This is quite helpful. Thanks and greetings for the rest of the season. Thank you. Thank you. Thank you. The next question comes from the line of Soham Samanta with Mudlal Ushal Financial Services Limited. Please go ahead. Yes. Thank you, sir. Thank you so much for the opportunity. Just wanted to check a couple of things on CapEx. We have guided INR $2.50 crore for full year and half year in our H1, we have done only INR 40 crore. So are you confident that INR 200 crore will be deployed in H2 or some CapEx will be deployed in FY 'twenty eight?

34:49 See, when we given a guidance of INR $2.50 crores, it was we said it will be twelve to eighteen months. So the full INR $2.50 crores will not be spent Okay. During this year. And the second thing on your new business, when we're saying that a low double digit margin, so as there is an 1112% of the margin, and we are already utilizing 70%. So what we are saying that from 70% to 100% jump, the margin will go from 11% to 12% to 15%. Is that right? This will be more from the manufacturing operations as well as the branded business, which we are already in. As more products are sold under brands, I think we will be able to get better margins.

35:44 Next question comes from the line of Pritesh Cheddar with Lucky. Sir, just a small bridge I wanted to understand. So let's say from H1 this year versus H1 last year, what will be the blended price hike? What will be the currency change? So these are the two changes in the benefit side. Then on the cost side, you'll have a higher freight cost and a higher raw material cost in the form of yarn cost. So just the percentages, broader percentages, not the precise one, what it should be, sir? Look, Pitesh, we may not be able to divert so much of details actually.

36:35 So what we can... What I can say is that as far as the freight cost is concerned, we are doing most of our business on FOB or CIF basis. So very less impact on this one. These freight hikes are borne by the customer. Mr. Cheddar, are you done with your question? Yes, sir. Next question comes from the line of Karina with Smiths Limited. Please go ahead. Am I audible? Yes, you are. Please Yes. Thank you for the opportunity and congratulations on a good quarter.

37:23 Just a few questions. One is the capacity utilization for The U. S. Unit currently stands at 65%. Could you help me understand when will we see this reach, you know, peak utilization? That's one. Considering how how you plan on expanding Vamsutra and, you know, we have newly licensed Tommy Hilfiger and other banks. Do you see us exceeding this 100,000,000 target, you know, by FY twenty eight that you are guiding for? Do we see this exceeding? That is my second question. And lastly, on on... You know, considering we have good operational cash flows, Yeah. We do have CapEx coming in, but do we see any sort of debt reduction plan in the near future?

38:20 And just lastly, on a follow-up question to an earlier participant. The CapEx is is planned for the next year, year and a half. The rest of INR $2.50 crores, could you give a breakup of how much can we expect in H2 and how much will sort of go into FY 'twenty '8? Yes, those will be my questions. Kaneka. So a couple of questions. So first of all, on this 65% going to 100%, we already mentioned that it will by CY 'twenty eight, we seek to go to full capitalization of our utility business. Second question was on Bam Suta. Yes, as of today, the overall guidance for branded business to be at $100,000,000 by CY 'twenty eight. So we go with that. We'll see if there's any uptick, if possible.

39:11 On cash flow for CapEx, yes, today, for this financial year, we have announced a CapEx of INR $2.50 crores, which will be spent in twelve to eighteen months. During first half, you've done around INR 40 crores. So rest will continue from that same perspective. And the last question was on the net debt reduction. Yes, definitely, with this whatever cash profit comes in and with this CapEx, which we announced, there will be a reduction in net debt. And the company has been following the whenever there is cash flows or surplus cash flows or free cash flows, we have been able to reduce the debt, which you have seen the numbers coming down.

39:58 Yes, understood. Just on the CapEx part, how much do we see in the second half in FY 'twenty seven? And how much do you think will flow through like FY 'twenty eight? The major two projects which you have taken, the effluent treatment as well as the spinning. Spinning could happen probably in this current year, majority in the current year. But the affluent treatment probably would spill over to the next year. We are not able to give any specific number at this point of time, but spinning could get most of it should be done before this year end, I believe.

40:44 Understood, sir. Just one last question I would like to squeeze in is any I know you've not given any updated guidance on the margin, but considering such a strong quarter of the first half and these as you mentioned, the core to new business mix will change UK feel like so many positives. Do we see that the margin guidance could be updated to say 18%, 20% range? Tanika, not on immediate basis. Yes, but for this year, from 13%, we can go up to 14%, 15%. Let's see. Yes, but we will not go beyond that. Thank you. Ladies and gentlemen, that was the last question for today. We have reached the end of question and answer session. I now hand the conference over to the management for closing comments.

41:42 Thank you, everyone, for joining us today. We hope we have been able to address all your queries. Should you have any further questions, please feel free to get in touch with SGA, our Investor Relations Advisor. Thank you once again for the continued interest and support. We look forward to connecting with you on our next call. Thanks. Thank you. On behalf of Indo Count Industries Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.