Rushil Decor (NSE:RUSHIL) Q2 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to the Rushil Decor q two FY twenty seven earnings conference call hosted by Asian Market Securities Private Limited. 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. Should you need assistance during this conference call, please signal an operator by pressing 100 on your touch tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Karim Bataria from Asian Market Securities Private Limited. Thank you, and over to you, sir. Thank you, Pradak. On behalf of Asian Market Securities, we welcome all to the Rushil Decor q two and first half FY twenty seven investor phone call. From the management side, we have mister Rushil, current managing Director and Hirin Khyi, CFO.

0:59 I would like to hand this call to Rushil Decor for his opening remarks, post which we shall open the floor for Q and A. Thank you, and over to you, sir. Thank you, Paranday. Good afternoon, ladies and gentlemen. Welcome to Rushil Decor Limited earnings conference call for the second quarter and half year ended 09/30/2026. I would like to thank you everyone for joining us today. I am joined by our CFO, Mr. Hiren Parjaya. The earnings presentation has been shared with the Stock Exchange and I hope you have an opportunity to review it. Let me begin by sharing an overview of our performance and the operating environment during the quarter.

1:47 I am pleased to share that Rushil Decor achieved its highest ever quarterly revenue during the quarter two financial year twenty twenty seven, reflecting improved business performance across our businesses. The quarter particularly encouraging for our laminate business supported by increasing contribution from jumbo laminate, while the MDF business benefited from strong domestic demand and higher capacity utilization. The improvement reflects the progress made over the past few quarters in stabilizing the operation, improving capacity utilization and expanding our portfolio. Coming to our consolidated financial performance. Revenue from operations increased by 25.3% year over year to INR 2,953 million in quarter two financial year twenty twenty seven.

2:43 EBITDA increased by 24.5% to INR $280,000,000 with an EBITDA margin of 9.5%, while profit after tax increased by 96.6% year over year to INR 101,000,000. For the first half of 'twenty seven, revenue from operations increased by 26.4% year over year to INR5243 million, while EBITDA reached to Rs. $462,000,000 with an EBITDA margin of 8.8%. Coming to the laminate business, it continued to be an important growth driver during this quarter. The business achieved its highest ever quarterly revenue of INR884 million in quarter two financial year twenty twenty seven, representing a growth of 61.7% year over year, supported by the higher domestic and export sales and an increasing contribution from jumbo laminates.

3:48 EBITDA more than doubled to INR 85,000,000 with an EBITDA margin of 9.6% compared to 7.7 in quarter two financial year twenty twenty six. On the realization front, blended realization increased by 21.7% year over year to INR $8.47 crores, reflecting an improved product mix and higher contribution from the premium laminate products. The improvement in both revenue and profitability is encouraging and reflects the progress made in strengthening our process across domestic and international market. The jumbo Lemninus business in particularly has gained significant momentum during the quarter.

4:37 Revenue increased by 97.3% subsequently to INR217 million, while EBITDA grew by 86.5 to INR42 million, with an EBITDA margin of 19.4%. Total sales volumes more than tripled subsequently, while capacity utilization reached to 41% in quarter two financial year twenty twenty seven, reflecting the gradual scale up of the operations. We have invested considerable efforts in the product development, certification, customer approvals and expanding our presence across the international market. Are now beginning to see the efforts translate into the higher sales and improved earning contribution.

5:29 Going forward, our focus remains on expanding our customer base, increasing capacity utilization and building on the progress achieved in the Jumbo Lemur business. Turning to the MDF business. I am pleased to share that the segment also achieved its highest ever quarterly revenue of INR $1,962,000,000 in quarter two financial year twenty twenty seven, representing a 15.8% year over year increase. EBITDA increased by 6% year over year to INR194 million. The performance was primarily supported by the domestic demand across the retail and OEM channels. With India MDF revenue increased by 41% year over year.

6:19 During the quarter, we continued to adopt a elevated approach towards an export aimed at global trade uncertainties and elevated freight costs. Accordingly, we did not undertake any MDF exports during the quarter and continue to prioritize the domestic market. Despite the absence of the export sales, the business achieved the record quarterly revenue supported by the higher domestic sales, improved capacity utilization. MDF capacity utilization increased to 87% from 66% in previous quarter, reflecting a significant improvement in operating levels. We also remain focused on increasing the contribution from value added MDF products during the first half of financial year twenty twenty seven.

7:09 Value added products contributed 44% of MDF volumes and 55% of the revenues during the H1 financial year twenty twenty seven. We are making the progress towards our target of achieving 50% of MDF volumes and 60% of MDS revenues from value added products during the year financial year 2027. Increasing the contribution from these products remains an important priority as we work towards improving the product mix and profitability of the India business. Furthermore, during the quarter, we continued to strengthen our domestic distribution network by adding eight new direct distributors and 27 dealers.

7:56 Expanding our distribution pipeline remains improvement from improving product availability and increasing our reach across the domestic market. Looking ahead, our focus for the remaining of financial year 2027 remains on sustaining the improvement in business performance, particularly in the laminate and jumbo laminate business. We are encouraged by the progress achieved in jumbo laminates where the efforts were made towards the product development and market expansion are now translating into a higher sales and improved profitability. In the MDF business, we will continue to focus maintaining the higher capacity utilization, strengthening the domestic market presence and increasing contribution from the value added products.

8:47 Alongside this initiative, we remain focused on improving our overall product mix and managing operating costs across the businesses. We believe the progress made during the first half of financial year twenty twenty seven provides a good foundation to build on the current business momentum and improve our financial performance in coming quarters. That concludes my remarks. I would now like to hand over our call to our CFO, Mr. Hiren Badia, who will take you through the financial performance in great details. Thank you. Good afternoon, everybody. Thank you, Mr. Rushil. Avam, welcome to all participants joining us today.

9:36 I will now take you through the financials and operational performance of Rushil Decor Limited for the second quarter and first half of FY twenty twenty seven. Starting with the consolidated financial performance, the revenue from operations for Q2 FY twenty twenty seven increased by 25.3% year over year and 29% quarter over quarter to INR 2,953 million. Gross profit for the quarter was INR $1,128,000,000 with a gross profit margin of 39.9%. EBITDA increased by 24.5% year over year to INR $280,000,000 with an EBITDA margin of 9.5%.

10:28 Profit before tax was INR 106,000,000, while profit after tax increased by 96.6 percentage year over year to INR101 million with a net margin of 3.4%. For the first half of FY 'twenty seven, revenue from operations increased by 26.4% year over year to INR 5,243 million. Gross profit was INR 2,017 million with a margin of 39.5%. EBITDA more than doubled to INR $462,000,000 from INR $2.00 3,000,000 in H1 FY 'twenty six with EBITDA margin improving to 8.8% from 4.9%.

11:23 Profit after tax was INR 121,000,000 with a margin of 2.3 percentage. The improvement in financial performance was supported by higher revenue across businesses, better capacity utilization in MDF and increasing contribution from the laminate business, particularly jumbo laminates. Moving to segmental performance, starting with MBS business. MBS revenue for Q2 FY 'twenty seven increased by 15.8 percentage year over year to $1,962,000,000, marking the highest ever quarterly revenue for the segment. The growth was driven by domestic MDF business with India revenue increasing by 41% year over year.

12:15 Despite the absence of export sales, capacity utilization improved to 87% compared to 66% in the previous quarter. From a profitability perspective, MBS EBITDA increased by 6% year over year to INR194 million with an EBITDA margin of 9.9%. For H1 FY 'twenty seven, MBS revenue increased by 16.4 percentage year over year to INR 3,418 million, while EBITDA increased to INR $317,000,000 compared to INR 110,000,000 in H1 FY 'twenty six, with EBITDA margin improving to 9.3% from 3.7.

13:06 Moving to the line item business. The segment reported again its highest ever quarterly revenue of $884,000,000 in Q2 FY 'twenty seven, representing a growth of 61.7% year over year. India M and A's revenue increased by 82.1 year over year to INR404 million, while export revenue grew by 47.7% to INR480 million. Total sales volume increased by 32.8% year over year to approximately 10.4 lakh sheets. Blended utilizations improved by 21.7 percentage year over year to INR $8.47 per sheet, supported by an improved profit.

13:56 Laminate EBITDA more than doubled to INR 85,000,000 compared to INR 42,000,000 in Q2 FY twenty twenty six with EBITDA margin improving to 9.6 percentage from 7.7. Gumbo Aluminae portfolio continues to scale up during the quarter. Revenue increased by 97.3% sequentially to INR217 million supported by higher sales volume, which more than tripled compared to the previous quarter. EBITDA increased to INR42 million from INR23 million in Q1 FY27, with an EBITDA margin of 19.4%.

14:42 Capacity utilization in the lumber laminate business reached to 41% during the quarter. For the first half of FY 'twenty seven, laminate revenue increased by 63.3% year over year to INR $1,622,000,000, while EBITDA increased to 56.6% to INR 137,000,000 with an EBITDA margin of 8.4 percentage. Blended realizations improved by 25.1% year over year, reflecting the increasing contribution from higher value products. Coming to the PVC business, revenue for Q2 FY 'twenty seven increased by 14.3% year over year to INR 103,000,000.

15:31 Sales volumes increased by 11.8%, while blended utilization improved by 2.3% year over year. EBITDA for the quarter was INR 2,000,000 with a margin of 2.4%. For H1 FY 'twenty seven, PVC revenue increased by 13.7% year over year to INR 200,000,000, while EBITDA was INR 10,000,000,000 with a margin of 5.1 percentage. Moving to the balance sheet. Net debt as of 09/30/2026 was INR 2,715 million compared to INR 2,543 million as of 03/31/2026. The net debt to equity ratio was 0.41 compared to 0.39 at the end of March twenty twenty six.

16:25 On the working capital front, company made progress in improving working capital efficiency during H1 FY 'twenty seven. Inventory days reduced to 146 from 195 in FY 2026, while receivable days improved to 78 from 81. Payables days also reduced to 157 from 189 during the same period. These improvements reflect our focus on better inventory management, faster collection and optimizing working capital requirements. Going forward, we remain focused on improving cash flow generation and strengthening our overall financial position. Thank you for your attention. That concludes my remarks. I would now like to open the floor for questions and answers.

17:13 Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may please press star and 1 on their touch tone telephone. If you wish to remove yourself from the question queue, you may press 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question is from the line of Aditya Agarwal from Old Bridge Mutual Fund. Please proceed with your question. Right. Thanks for the opportunity, and congratulations on a good set of numbers.

18:05 My first question is in the MBS segment. I to get some sense on the realization part. Like, what's driving the degrowth on a q on q and y o y basis? Because I guess we had a healthy mix of value add products, and this year, we also took a 15% price. So if we can get some picture around it, that would be helpful. So first of all, the realization for the half yearly was somewhere around for the half year. And it has like from the last year on the same half year it has improved because you know the last year in the month of April there was an unfortunate incident of fire happened to our plant in Andhra Pradesh unit.

18:54 This time we are having a good market demand from domestic players as well. So yes, the export opportunities were looking really low at this point of time because of the ongoing situation in the Western part of the world. So because of this, our full focus and the complete focus was on optimizing the capacity and in the best possible manner domestically. So that's what we have done in India. Okay. So that is a picture on the first half. Like in the quarter, we are since we have not done any exports, in the quarter, our domestic realizations are down 7% Q on Q.

19:41 Why that phone has come up? Is it like mix at play or something else? So the current raw material scenario is also really very skeptical. Like the chemical prices have been very volatile, and there has been also price pressure under the competition for 5% to 10%. These were the two major reasons for lower realization in quarter to quarter. Okay. Okay. My second question is on volumes. So we have done very healthy volumes of 76,000 CPM. That's really outpacing the industry growth rate. So what are the factors driving it? And just wanted to get a sense on the sustainability of these volumes for the full year. Like, what kind of volumes are we targeting for the full year in MDS?

20:36 And what's driving this at the current moment? Yes. So we'll be utilizing the capacity somewhere around 80% to 85% across the year. And with the same pace and yes, the result what we have from this time is really achievable and maintainable from our side. We will be trying to improve our value addition part like as we say that we want to reach to 50% in volume and 60% in revenue. That's what our target would be for upcoming H2. Okay. And one last question, sir. What should be the full year CapEx for FY 'twenty seven?

21:30 So far as CapEx is concerned, internally, it is very clear from the management that there is no specific additional CapEx for the whole year except the normal operational CapEx. So what should be that amount more or less? Amount can be in the range of INR 15 crores to 20 crores in mix, which will be from internal core only. Okay. So ideally, next to 5 crores of more extra cash outflow in terms of CapEx will come in because we have already done INR 14 crores till H1, right? Right. Yes.

22:15 Okay. Yeah. Thank you. Thank you, sir. The next question is from the line of RUSHMIC OZA from Nine Rays Equity Research LLP. Please proceed with your question. Thanks for the opportunity. I had a question on the jumbo laminate business, sir. Since you've reached around 41% utilization and you've done around INR 21 crores roughly around INR 22 crores in Q2 with 20% EBITDA margin. So I wanted to understand if you reach full utilization, can this be a 80 crores to 100 crores revenue with 20% plus EBITDA margin?

23:04 Okay. See, this particular business has a I mean, product mix has a very much I mean, there are so many varieties. And the product realization can be very high also and very low also. So in both the cases, now it depends upon the product which we are dealing with in this irrespective today. So concerning some of the last two quarters of business, I think you can extrapolate the feeder and the overall turnover. If we reach 80%, 85% capacity, then it can be 80 crore also, it can be INR 100 plus also. What rate is possible? Okay. Okay. And sir, at this low utilization also, we're making around average 20% EBITDA margin in the first half.

23:55 So is there a scope to see better margins if you are running the plant at 80% utilization? Currently, there can be some betterment on the operation side, like variable cost. Sales, the margin is always said to be the average business. Lemonade as a business as a whole has a margin of 12% to 14% as a whole. And we will make sure that we achieve those the numbers what we are committing of 12% to 14% margin for laminate business as a whole. Okay. Okay. Okay. Because the blended margins actually are roughly around 9.5%, I think, right now, if I'm not wrong.

24:42 Yes. That is the pressure is just because of the raw material pricing and the global shipping scenario what is happening. The freight charges, which we were supposed to be at $800 $900 have to be up to $8,000 So that is the main reason of this kind of variable charges. Because we, in jumbo laminate, it's always about the contractual business for upcoming quarters. Okay. Sir, my next question was on the realization. If I look at the blended realization, you know, they moved up substantially in the laminate business from $6.96 to $8.47 per sheet. But if I look at the breakup, there's a major jump of 72% in India laminate business, whereas in case of jumbo laminate, the realizations have gone down. So how do you read this and how do you see this blended relation going forward?

25:40 So again, as Mr. Hilland, I told that everything depends on the product mix, what product mix we have made. So when we talk about just the regular business, the realization is somewhere around for the quarter, where the manufacturing has been done for 324,000 sheets. And that all is a different product variety, like some are the solution kind of businesses, some businesses are made on the quarterly like realization quarter contract basis and some businesses are on the normal interior wear compact businesses. So there are and all the thickness varies from right from two millimeter to 25 millimeter. So it is very difficult to assume that what kind of orders we're going to be having in other part of the financial year. The other way, if we look at that all the shipments of jumbo majorly on the FOB basis, while when we talk about the regular laminate business, the 60% to 65% export is done on CIF basis. That also plays a major component when it comes to logistics.

26:53 Because of one more reason, logistic is also one of the part of the reason why the realization looks a bit on the lower side for Jumbo and Net. But it is at par, I would say, if we convert it into the CIF. Okay. Okay. That's helpful, sir. And how long will it take in terms of number of quarters to move this realization or sorry utilization from 41% to the optimum utilization of 80%, 85%? We are striving for it. So maybe in, I would say, March, we'll be at level of utilizing somewhere around 80%, 85%. Okay. Okay. And the related question was, sir, suppose you hit that 8085% utilization in Jammu. I mean, at the end of this fiscal year, you're already running at full utilization in the laminate business. And now the NGL utilization levels have also moved up to 76%.

27:54 So is the company or the management looking at some fresh CapEx in either the MDF or the double laminate business going forward for growth coming in for FY twenty twenty eight and FY 2029? So as of now, we'll take this quarter to review everything. And after which, we would like to come to a conclusion. There are a few other like few of the things internally getting discussed over. So we'll make an announcement once it is internally decided. Okay. Okay. Okay. And the last question was related to MBS, The exports volumes have actually just completely gone down, whereas the domestic business has picked up a lot. So how do we see this MBS business going forward? Will it be more domestic driven? Or do you expect some revival in the export market by way of realizations or demand?

28:49 Because the penetration level of MDA is still very low in the country. Opportunity is huge, but how do you look at this business? Because we have not expanded capacity for quite a long time, whereas other peers have regularly looked at increasing capacity in the MDS side. See, to answer this question, before the strategy was very different that we were not entering into the pricing kind of a scenario. We were not having that much pricing pressure because of the exports. So now on, it is completely into the domestic. So we are having good volumes done in domestic markets as well and we are also taking some pricing pressure because of this.

29:38 And another thing of this volume is because the first quarter last year was under fire. And it is a calibrated approach once the pressure for the Western part of the globe is lower or maybe the freight prices get normalized, then we can see an opportunity of exporting the India for gain. Then by that time, it will be all domestically focused and we'll be expanding our markets in terms of OEMs, distributors and dealers. Okay. Okay. And the last question, sir, was has the split of dumping or dumping or imports from China and then he said now, is it passed? Or do you see still some pressure on imports from China on the empty side?

30:35 I think there is no much pressure of import in China from China because China has never been a threat in MDF. The threat countries have always been Malaysia, Vietnam, Thailand and Indonesia. But as of now, we don't see much imports coming to India because of the high freight. And also the BIS is in place now. So we are also covered by the BIS standards, which we have to accept. Okay. Okay. Thanks. I'll come back in a Thank you so much, sir. Yeah. Thank you. You, sir. The next question is from the line of Dhruvind Doshi from NV Alpha. Please proceed with your question. Yeah. Thank you, sir. Thanks for the opportunity.

31:24 Sir, I just wanted to check with you on the the nonjumbo laminate business. So we did some back of the hand calculation. The EBITDA margins are coming up to around six, six and a half percent, say, which earlier we've done around nine, 10% also. So is it that sort of main reason for this is the lower exports and the raw materials spike that has happened in the last couple of quarters? So any flavor on that? And where do you see that normalizing to? Do we see that coming back to 10 odd percent? Yes. So the EBITDA margin standing at around 7% is just because the low the higher raw material pricing.

32:12 And at the same point of time, the price hike in laminate has just happened in the month of October, maybe I would say after October 10, because of which the price hike has been taken in quarter three. And also I would say the EBITDA margin is standing for as a laminate as a whole at 10%. So including Zambu, if we consider it is standing at a 10% margin. And talking about the raw material pricing, again, it is difficult to see when the situation normalize. Currently, we are accepting this as a new normal and moving ahead in terms of half year as a whole. Got it, sir. So... And just to, you know, continue with, say, earlier... An earlier participant's question.

33:04 So I guess by the end of q four of this year, we'll more or less teach to an on near optimum capacity utilization in the laminate segments, say, maybe jumbo and or non jumbo both. So do we have any capacity plans, expansion plans, you know, post that for FY '28 and '29? Are we considering anything internally? And what sort of incremental CapEx would it be? Would it be a brownfield expansion only to start with? As of now, we are still under the review and management is yet to decide what kind of CapEx is it a greenfield or brownfield CapEx to be done. But maybe by end of this quarter, once we have a good utilization number with jumbo laminates and the regular laminates, we would come up with something or maybe we would have some kind of announcement on the later part of the quarter.

34:02 Got it, sir. Great. So just one last bit. Any guidance for the full year for EBITDA from laminate and MDF? See, I think you can see for the last quarter one and two, the I mean, has been improving. And I can only say that this will definitely further improve over the period of next two quarters. Got it, sir. Yeah. Thank you. Thank you, sir. The next question is from the line of Madhu Rati from Counter Cyclical Investments. Please proceed with your question. Sir, thank you for the opportunity. Sir, I wanted to understand, do we sell our MDF at a discount to our competitors?

34:51 Because our realizations have always been lower than everyone in the industry. Sir, can repeat the question? Because we didn't hear it loud and clear. Yes, sir. I'll I'll do that. Sir, do we sell our MDF at a discount to our our competitors? Because our realizations have always been lower than the other listed peers in this industry. I don't see that because it's always a balance of trade and OEMs. And you can check our bottom line as well if this has been the part of giving an additional discount or something has happened. We are just saying that we are maintaining our market share and now focusing aggressively on domestic.

35:39 Sir, so is our OEM business larger for Decor versus any other competitor? Is that so for the realization of volatility? Our overall capacity utilization, maybe 40% is going to OEM market and 60% is going to trade and retail market. I don't know about the other companies, what are their mix. No, sir. That answers my question. So with Rushil is already a strong player in the OEM market, sir, how do we see this BIS on furniture impacting us? And how should we look at our this business going forward? So BIS, us one kind of a positive impact for first of all from the threat of imports, which were happening now that is one side is safe for us. Once the BIS is done in the furniture industry, that will give us the boost for sure. But the bigger thing is the vision what our Prime Minister Kerry is making India made for world and that is going to be one of the biggest part which India will carry to the upcoming economy, like upcoming boosting of the economy because furniture is one of the biggest market for China, which India is now getting

37:07 an opportunity to replace China with. And it is good that for consumers also, it would be all an organized company in such an organized way the company the furniture companies would run. Sir, so two things on this also with one is the because of freight rates, as you mentioned, that imports of MDF have reduced. So sir, are we able to pass on a pricing to these customers? And, sir, how is the offtake by the customers in the four major segment post both the import import reduction and import as well as the BIS? So are these guys talking up more, or how is it if you can help us understand on the demand trend?

37:53 So first of all, like from Malaysia, Vietnam and Thailand, out of, I would say, 52 companies only two has the. So that are the only two, three companies who are allowed to import their products in India. But due to current logistic costs, that is also not possible. Another point is India has now got the capacity that can serve the Indian market as for the CAGR what India needs. So there is a better service opportunities for other distributors and OEMs to get an Indian product because if you see that if you have to import something, have to give a minimum market requirement. There are minimum MOQs from the product in terms of containers. You need to have a larger warehouses. There are too much of operating expenses.

38:45 That is that all cost goes down when it comes to an Indian company. You have a local manufacturer, you have a trust towards the brand. So I would say, in any case, in current scenario, if the freight normalization happens, still the market would be with the Indian players. Got it. And sir, on the pricing front, sorry? Pricing front, there is a good competition, healthy competition going between the domestic manufacturers. So it's going to be I think this one more quarter is going to be the pressure and it would be more on the stable side rather. And there are also some raw material price hikes in the terms of chemical because of the ongoing war in the West.

39:32 But our focus would be remained always to have a more value addition business, which we are committed to. Got it. Sir, just one final question from my end. Sir, how should we look at our capital allocation in terms of CapEx going forward? Will it be more towards the laminate business? Will it be more towards the MDM business, if you can help us understand? Thank you so much. See, again, as a further question is there, I mean, the question which management will internally discuss and maybe discuss at Board level also. But yes, I think considering the way we are moving ahead with limited segment as well. So I think it is a question of maybe whenever we decide for the, I mean, CapEx.

40:20 So that time only, we will finalize the exact allocation. But we are just hoping for the laminate segment to become bigger than or it is equal to the MBS segment in the next couple of years. Got it. Sir, thank you so much and all the best. Thank you, sir. Ladies and gentlemen, to ask a question, please press star and one now. The next question is from the line of from NBS Brokerage. Please proceed with your question. Hello, sir. Congratulations on delivering the strong set of numbers in H1. Sir, with healthy performance across both MDF and laminates, do you expect to sustain or surpass this performance in H2?

41:10 And if you can quantify? You. As I think already informed in the earlier question, the way we are just, I mean, performing in the first and second quarter, we are very much hopeful that the next two quarters also will do better. Okay, sir. Any revenue guidance for current year? I think the way we are clear as of H1, you can definitely extrapolate the number, but it will be better than this. That is for sure. Okay, sir. Thank you. You, ma'am. The next question is from the line of from NV Alpha. Please proceed with your question.

41:58 Yeah. Hi. Thanks for the opportunity again. So my question is a little bit on the qualitative side on the jumbo laminate. Sir, could you tell me, you know, how are we able to penetrate the markets for jumbo laminates? How are we able to get the clients? To what geographies are we getting the orders from? And how is our competitiveness versus other exporters from India and globally as well? So that would be great. So first of all, we have been really struggling over last one point five years just because of the investors which were committed towards investing some funds, which didn't went on time and because of which we struggled a lot in this business and starting about first board.

42:51 But now the journey has been taken off this one point five years for getting our product certified in certain markets, getting the approvals for certain markets, then getting few of the raw materials, which are really challenging for us to bring in India. So that has taken a good sweet amount of time for us to develop the specified products. But yes, now we are aggressively focusing the market. We have all certificates in line. We have too many kind of different kind of applications which has been tested. Just for an example, there is a exterior facade tested at, I would say, 80 degrees temperature for the heat and two thousand four hundred hours of constant testing that has been passed, which is one of the finest class in Europe, which has to be required if we want to get an export to Europe. The same way we have also done the Australian fire retardant test, we have passed that. So that all certificates are something which are really taking the six to eight months of time for getting such certifications.

43:58 So now every certificate is in place and we are open globally to export. We are also doing the specialized product like making the kitchen tops, table tops, then for the exterior barbecue grills as well. So we are exploring the different market and we would say we are positioning ourselves as a end to end solution maker rather just supplier like rather just a factory being supplier of panel or SPL moves. So that is where we are positioned as well. That is the edge where we are getting the orders from. And what geographies would that be? Yes. Focused geographies? Yeah. We have started focusing on Europe.

44:44 First of all, that is one of the bigger markets for example. And we have started focusing on Russia, and we are doing a good amount of amount of business from Russia from few parts of Europe. Then we have our exit prime focus as well on some of our Southeastern market, which are really, really lucrative on the terms of jumbo laminate and where we have also very good amount of setup for our regular laminate business where we are expanding the product portfolio as well. So that is how we are strategically playing. Before jumbo, our export was somewhere around 54 countries or 52 countries. Now we've expanded to 63 countries. So that's how we are growing. And the dream is by H2, we should at least add seven more countries in our portfolio.

45:38 Okay, sir. Got it. So one of the peers, you know, who's scaled up so much in export market, they have piggybacked on for doing white labeling for one of the largest laminate players globally. Do we have... And clearly, margins in laminate... The jumbo laminate business is significantly higher. So do we have plans to, you know, scale that up via doing some white labeling also? If Because that can As of now, we are doing it our own brand. As of now, we are collaborating with the the the general partners over there, and we are doing it by our own as of now. But we don't get ourselves there as of now that we get some opportunity and we would yes, if we have some opportunities and we would be doing that contractual production as well. But as of now, we are doing it by ourselves.

46:39 And we do supply to few of the bigger stores in America as well. So we don't see that we should have that kind of joint venture at this level. If we have a surplus capacity when we are going ahead, then we may think of. But as of now, we are doing it by our own brand with the hand on hand partnership with the specialized customer over there. Got it, sir. Sir, just one last question. You did mention that a lot of the Jumbo revenue is contractual based. That's why we were able to maintain the margins despite cost pressures also. So given the guidance, our full year guidance for Jumbo of INR 80 crores to 100 crores, do we have the contract visibility for the next couple of quarters to do that kind of or to reach that kind of target?

47:34 Yes. So we have already signed a few of the upcoming businesses for quarter three and quarter four as well. So we see a good amount of jumbo business coming into direction. And I don't see any problem occurring with the pace we are we are moving ahead forward. We have a good amount of orders as of now. That's great, sir. That's it from me, and thank you so much. Thank you, sir. The last question is from the line of s Agarwal from HDFC Life Insurance. Please proceed with your question. Good afternoon, sir. One question is, suppose you decide to do some kind of CapEx for Jumbo Laminates business, since it will be brownfield in nature, typically, how much time will it take?

48:32 So if we see it is a brownfield supposing, then the lead time from the machinery, which is the most important part, and it takes generally eight months for the main machine to get ready. Okay. Okay. And second question is basically what is your guidance for, say, FY 'twenty eight revenue as well as EBITDA for the whole company? And what is your guidance for the jumbo laminates business for FY 2028 revenue EBITDA impact? We have informed in the last, I think, two times. I would not like to give any guidance for FY 2028 as of now. But so far as current financial year is concerned, it will be definitely better than H1. That is for sure.

49:25 Okay. Okay. Thank you. Thank you, sir. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to management for closing comments. Thank you all for taking the time to join us today and for your continued interest in Rushil Decor Limited. As we continue to navigate opportunities ahead, we remain committed to achieving our strategic objectives and delivering the consistent value to our stakeholders. For any further questions, please reach out to our investor relation team at Jazz Gift Partner. Thank you once again. Thank you, sir. On behalf of Asian Market Securities Private Limited, that concludes this conference call. Thank you all for joining us, and you may now disconnect your lines. Thank you.