Stylam Industries (NSE:STYLAMIND) Q2 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to Stylam Industries Limited Q2 FY 'twenty seven Earnings Conference Call hosted by Systematics Shares and Stocks 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. Please note this conference is being recorded. I now hand the conference over to mister from Systematics. Thank you, and over to you, sir. Thank you. On behalf of Systematic Institutional Equity, we welcome you all to the q two earnings conference call of Stylam Industries Limited.

0:51 From the management side, we have mister Jabir Gupta, managing director mister Manish Gupta, full time director mister Krishna Narpal, chief financial officer and mister Sandeep Madan, vice president. I will now hand over the call to the to Jabir for his opening remarks followed by q and a session. The call will be scheduled for about forty five minutes, and no repetitive questions be asked. Over to you, sir. It is my pleasure to welcome you to Stylam Industries Limited conference call for the second quarter and a half year ending September 3026. On behalf of the entire leadership team, I would like to extend my sincere appreciation for your continuous trust and confidence in supporting Stylam Industries.

1:41 In the interest of time, rather than taking you through the presentation in detail, we would like to make the session in... Interactive and engaging with the folks on addressing your question and sharing our perspective on the company's performance, business outlook, growth opportunity, and strategic priorities. With this opening, I would now request to be moderator to take over and open the floor for question and answer session. Thanks again for joining us today. We look forward to insightful and constructive interaction with all of you. Thanks. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch tone telephone.

2:31 If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Kesha from STY Securities. Please go ahead. Hi. Thank you for the opportunity. So first thing I want to understand, sir, now the new plant has commissioned. What is the outlook for the same? How is it, you know, ramping up? Has it started commercial And what sort of revenue are we expecting for this year from that plan?

3:18 Plant is already started. One by one, two presses is already started. Third one is going within two, three days, and fourth also within few days. Within this month, plant will be fully operational. But the problem we have a orders will... In hand for a sport, but the problem we are facing is due to this war, ocean freight, non availability of vessel to Middle East country. So even then, we are expecting 250 to 300 road turnover this year from the new plant. Understood. Alright. So tell me one thing. If I see your export regulation per sheet by the volume data, what you have reported, that is just up by 1% year on year. So, ideally, considering that now ocean freights are up, you know, chemical prices have increased.

4:16 So, ideally, export realized cost should have increased by double digit. So what am I missing or has the product made more like a common, like, know, low low margin product or more like, you know, lower revenue product you have sold in this quarter? I think... Can you update? Sushiri, good afternoon, Krishna. The last time I managed to have an existing IPX $4.61 rupees per kg. Q one to $1.86 rupees a year. For q two $1.01 rupees a year. So relation may increase. Q two FY twenty six IP $10.39 or $10.52.

5:12 So you're only 1% increment last time Okay. Got it. Okay. I'll take it offline. And one last question from my side, we have seen EBITDA margin, you know, which used to be around 19, 20%. This quarter is down to 17%. We have seen a sharp increase in other expense by 40%. What is the reason for the fee, and what is the margin outlook in upcoming quarters?

5:58 As to all, it is 18, not 17. So EBITDA is 18% something percent. I don't know. But the outlook is what... Like, last quarter, it was 21%. So should we expect this to be back to, you know, 20% what we are doing in couple of quarters? This is the new normal 18%. Situation and everyone knows what is happening with the crude and the raw material prices. So if we say that at late quarter of office 20%, so we really can't under... We we really can't comment on this particular point, whether it will be 18, 16, 15, 10, or 20.

7:03 Situation day to day basis top line has increased because that means we are doing something good. A bit of margin drop only, not only in the industry, but in any industry in the world. Only due to the crude prices. And another thing another thing you will notice that if you compare last half year versus this half year, we are better off in this half year in comparison with the previous half half. Right, sir. Right. Right. Got it. Got it. Okay. Thank you so much. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants, please limit your questions to two per participant.

7:55 Next question is from the line of from MSA Capital Partners. Please go ahead. Yeah. Am I audible? Yes. You are. Yeah. Thank you so much for the opportunity. Sir, great great set even after this macroeconomic setup. So just wanted to get... Understand from you that exports... So it's a tale of two two stories. Right? Exposure is doing really well. Domestic is still subdued. So when... If I want to double click on exports and try to understand what is really driving this growth, and once the new plant comes in, how how large can export again? How fast can export go? So that is to... One is understanding what is driving this growth, and second, a forward looking outlook on exports.

8:45 So I think firstly, I'll talk about the domestic one that you said. Domestic, I think we are actually revamping it and... Which was not going okay since the last so many years. So I think it will take another one quarter. I think in the last call also, we said that it might take two to three quarters to get it revamped, and you will see a drastic change in the domestic market as well. I would say this coming quarter as well as q four. So that is the domestic one which you did us, but I would like to highlight that. We're talking about the export. In export market also, the global manufacturing is getting a little bit affected by multiple reasons. It can be energy cost. It can be labor cost. It can be different raw material prices everywhere in the world due to which European or other manufacturers are facing a problem manufacturing and competing it with India.

9:35 So I think that would be one of the points where we as a manufacturer are taking their market share. And as of now, it looks okay, but no one knows what will happen as per the global issues happening in each and every region. But from our side, we don't think any issues going forward as well for the export market and domestic market to which we are in. Understood. Understood. So my second question, thank you so much for answering on the domestic point as well, is if I look at if I look at your gross profit or what you call internally contribution margins, they've not budged even at these even in these difficult times. So, yes, you have taken a hit on EBITDA margins, but the contribution margin has has remained steady. So two points on this that I want to understand. One is the new plant is coming, and there would be some teething issues. There would be... Could be working in in a lower capacity utilization for the for the for the first half at least till you ramp up.

10:42 How do you see the margin profile in terms of for the contribution margin profile for the company level, both the new plant coming in and the raw materials scenario that we are in? Do you think we can hold on to this Or once Yes. I will even more moment. And if... Once the capacity utilization of the new plant reaches your optimum utilization, can we better can we better from it? Can be better. First of all, we'll try to... Or not we'll try. We will definitely make it that it will hold at least this much of the margins you're talking about. Secondly, the ramp up or the or the the teething issue. I think there won't be any teething issues. There might be issues of just a few weeks because this is not a new product what we are manufacturing. It's exactly same product, and we know how to do so. So it it might not take us half a year or one year to reap or to get the plant stabilized.

11:37 Yes. If the market reacts in a proper way, the global geopolitical issues, whatever is happening, definitely, the margin might be better as well. Understood. If I can just squeeze in one more question. I think you can ask the moderator one. Sir, should you have a follow-up question, please rejoin the queue. Alright. Thank you. Thank you. Next question is from the line of Singh from MyEquitySherpa. Please go ahead. Hi, sir. Good afternoon. I hope I'm audible. Yes, sir. Yeah. Thank you. So, sir, you mentioned that this disorder is is leading to other expenses elevation.

12:29 Yeah, a lot of folks are facing it. I was just wondering whether it is leading to only headwinds or we are getting some better opportunities to make inroads into new clients for increasing our exports because of this? Yes. It would be that way also. Okay. Second thing, sir, congratulations on this new plant. It was something which was going on for a long time. With this in place now, I'm I'm just looking for your views that what are the things which are exciting you today because of which our numbers will will improve in coming times. So your your thought process around it. No. Sorry. I don't understand your question. Exciting as in? At at management level, many things happen today.

13:19 The results of those will come two years later and all. Right? So once this plan is in place, we have this bandwidth available now. So what are the areas which are kind of exciting for us today, which will show up in numbers, but in the future, not in In future, there are multiple things we we we have already considered, and we were just waiting for this plan to start within the next two to three months once the plant is completely stabilized with all the prices running properly. And we have that set for the both domestic because that is also going to revamp. We are looking for other as well side by side. Okay, sir. Thank you. Thanks a lot. Thank you.

14:05 Next question is from the line of Chirag Shah from White Pine Investment Management. Please go ahead. Yeah. Thank you for the opportunity. Sir, just a clarification before I ask a question. Sir, if you can just quantify, if you look sequentially, there is a two... Almost 300 bps margin decline, and it appears everything is coming from other expenditure, maybe some staff cost because of new plant. So if this freight related issue, what was the impact, if you can just quantify? Because it will help us to understand that once the issue goes away, how should we look at it? Right. Right. Any other one off... Any other major one off which lead to this 300 bps decline in market? No. No. We also mentioned in the presentation very clearly that almost three, three and a half percent is due to energy cost and freight cost. It was very something mentioned.

15:01 Sorry. It was ocean freight and second thing is the energy cost. Energy cost means use of pet coke or coal or gas, what we are using. So there's no other That is the biggest driver. Yeah. So there's no other My question is actually now now that Akio globally has come in, what kind of discussions still have you had with respect to integration with product, with sales? Anything anything that you would like to highlight? What are the... Because there are opportunities in terms of products which are available to us even in terms of the geographies are available to us. We should just talk about that. Are you talking there about AICA? Or Aika. The other news... The As as of now, sir, I think it's been just another... Just been four months. So they came on board on fifteenth or June 16. So it's been just four months. So there are still multiple talks or multiple discussions happening, but nothing as of now where I I I shall highlight or inform everyone that's happening, and that might last or do something.

16:09 But all the efforts are going on by Stylam itself directly in the market. Fair point. And, sir, my question is on exports, sir. Middle East used to be a... Including Israel, used to be a big part of our revenue. And because of Israel war, we had lost some part of Israel revenues. So today, given the war situation, are we affected even in the rest of the Middle East area in terms of our revenue? So not yet. Number that we see? Not yet. Not yet. But, again, we might lose if there is a war again, which everyone was predicting. So even if the Saudi airspace is longer, something happens there in The Middle East. So it would be affected to everyone, not only specifically Stylam, but that would be for every product being supplied from India. As of now, it doesn't seem to be, but we cannot predict the future of the next two, three months. Right.

17:05 As Right. Of now, our revenues are not really effective. We will only ship So, sir, you have a follow-up question, please rejoin the queue. Next question is from the line of Rahul Singh, an individual investor. Please go ahead. Yes. Good afternoon, and thanks for the opportunity. And first of all, heartless congratulations on the commissioning of the new plants. And what I've heard from social that it is one of the best plants using the latest technology in the world. And I would like the management to comment on that also. And my question is firstly related to these... First part is related to the the other CWIP of 12.41.

17:54 So I'd like to know if that is pertaining to the new plant or you are upgrading the earlier plant also as per the latest standards. This is primarily related to the new plant. So there is some works which are still pending at the plant. It's not the commission yet. No. So far as operational plant is concerned, that is complete. So as informed by our managing director that two presses are still in the pipeline, that is related to those presses only. And there are some other, you know, construction workers, some outside wall and other improvement in roads and all that that relates to that. Okay. And any chance of upgrading your old plant also to the upgrading your old plant to the latest standard?

18:46 Yeah. We are doing so. Side by side, a little contribution in this also for the both the old plant. Just, you can say, filling up the bottlenecks wherever we can just to have more capacity in the old plan or maybe able to utilize more there. Okay. And I'd like you to comment on your solid acrylic services business. Like, it's been very small and contributing very little to the overall business. So, like, with coming up, is there any synergy coming up which where you, you know, would be opening new ways for this business to prosper? Nothing, sir. As of now, there is nothing. Again, domestic acrylic services business is just similar to, as we were talking earlier, similar to domestic market. So we actually revamping it because we didn't do any domestic or export sales in the last two, three years for this particular product. So as soon as in when we are revamping the domestic laminate business, you will see a change in the domestic acrylic as well in the coming one to two quarters. And same what we are doing for export.

19:53 Understood. Understood. And and and I... Like my earlier thing, like, the new plant is as per the, you know, latest technology and the best in the world, I hope so. Because that's what I heard from... Yeah. Yes. Earlier, I think this is by far the largest and the most advanced plant. Okay. So my heart is complacence to the team, and I wish you all the success in the business. Thank you. Thank you. You. Next question is from the line of Rudraksh Raja from iThought Financial Consulting. Please go ahead. Yes. Thank you for the opportunity, sir. Sir, I wanted to ask on the exports volume growth that we have witnessed. It's actually more than 30%, 35% in this first half.

20:41 So what would be the rate that we would be actually comfortable? You mentioned that we are gaining market share because of all the uncertainty going on in global markets. But in, let's say, in these type of events, this uncertainty subsides a little bit, what is the kind of volume growth that we should witness in next year? So, Rizkah, again, very difficult to actually answer it. But yes, there has been a volume growth for us. We are targeting more markets wherever we could, looking at different product segments in our HDL as well. Going forward, we will try to keep or manage the same or maybe even increase more volumes in different parts and different product changes.

21:31 Got it, sir. And sir, any price increases that we have taken to manage this price on the cost side? And how do you look at prices going forward as well? Since domestic, yes, we have taken a few price increases, but our domestic market share share is very less. So I think that won't be very much... And export, it is very difficult. We are trying our best wherever we can. That is why our focus would be more of volumes and trying to look at the bottom line as well. But the competition is not only with organized players. Now the competition is with local Indian unorganized players as well as... So that is the main competition we are facing now. So difficult to have a complete slice push in the market for export.

22:23 Got it, sir. And sir, on the fixed cost side that might have impacted our P and L because of the new plan coming in, is everything now visible in Q2 numbers with respect to whether it be depreciation, other expenses or employee costs? Are we factored in all the expenses that should come in our P and L because of new plant? These have been if you can see the P and L, fixed expenses, of course, these are primarily relating to new plant and all that, but we don't foresee much increase except that as explained, primarily relating to fuel cost and ocean freight going up due to Middle East factors. Understood, sir. Understood.

23:12 And, sir, are we on track for whatever numbers we gave earlier for new plant utilization in FY twenty seven? Yes. Got it. Got it. And, sir, could you maybe help us understand a bit more on the domestic market market? You said that we are doing some Sir, sorry to interrupt. Should you have a follow-up question, please rejoin the queue. Next question is from the line of Pritesh Chera from Lucky. Please go ahead. Sir, just one clarification. I'm unable to comprehend the conversion going on with new plans. When I look at the depreciation number, there is no depreciation which is coming still.

24:02 What is the status of new plant? When it is becoming fully operational? And when should we start seeing the costs associated with new plant to be built in the P and L? See, this plant became operational on 09/22/2026. That's why you could see very little depreciation increase in this relating to new plant. So as informed earlier also by our managing director that two prices, production in two prices have already started and another two prices will start in two days time. Okay. And on the fixed cost side, because it's not large at the same location, do we have to build any extraordinary large fixed cost because this plant itself is a very big plant with many prices.

24:56 So will there be a large fixed cost or it's a number which may not be associated? There will not be much of fixed cost increase due to new plant. Only increase will be primarily on account of direct cost. Okay. And my last question is, on the margin correction that we are seeing because of whatever other expense increases and a little bit GP also. So what are the corrective actions in terms of pricing with any which are all or it's a passing phase where you know, few things have to normalize for the margins to go up. So which one is more plausible, a price high or the second year?

25:46 See, it would be a combination of many factors. One, you if you if you will observe previous half year versus current half year, we are in... We are much better off in EBITDA margin or operational margin even in PAT margin also. So it is combination of... It will be... And because of new plant coming up and all that, there will be operational efficiencies, economies of scales also. So rather we should... Listen. We are... We feel proud that if we see the world total HDL plants in the world and not in India. Our EBITDA margin is much more even than I cover new partners. This one out of our partners. Their EBITDA is around 12, 13% maximum.

26:32 Under these two big circumstances of oil, ocean rate, still be away 18%. Many round our eyesight congratulating us every day. And this is a vast situation. Whenever it will improve, I think not three, 4%, 5% is very easily can be crushed. Okay. And what is your half yearly volume growth and volume numbers, sir, in sheets, if you could? Yeah. Half yearly, last year, it was 5,883,000 sheets. And this year, it is 6,960,000 sheets. But if you go by KG numbers... KG numbers.

27:20 And it is in... Even there is no much contribution of this in new plant contribution in this. Correct. Yeah. And this has grown by more than 1,000,000 sheets, actually. So 6,960,000 versus 5,300,000 sheets? 5.83. Okay. 5.8. Okay. Thank you very much and all the best, and happy New Year. Happy New Year. Thank you. Next question is from the line of from MSA Capital Partners. Please go ahead. Yeah. Thank you so much for the follow-up... For taking the follow-up. Sir, on acrylic solid services, so it's been now... We we have this...

28:07 We started the business now a little more than five years. And how do we plan to scale it up? We have... We... If if you're... If I'm not wrong, we have a... We have more than 300 crores of revenue potential of capacity in this business. So are we thinking of... If domestic is not working, are we thinking of starting to exports? Or how is... How how are we thinking about this? If if you can just help me understand on the I see. We know that this business was started in 2019, 2020, almost five years. That is why I answered this question earlier as well that we are taking this, to be honest, as a fresh business right now after what we are doing in the domestic market. So to be honest, you have to wait maybe another one or two quarters as and when the Indian domestic market is revamping solid surface is a complete important part, and we have targeted ourselves the next two quarters, and you will see a drastic change only in solid surface.

29:09 As as far as export is concerned, again, as we were not focusing on this due to our family comparisons. So, yeah, I really don't have an answer of what to say for the last four years. But going forward, yes, it is an important part to be done for both export as well as domestic. Understood. This this is really heartening. Yeah. So that is my that is my daily honest rather than saying something else. We'll be honest here that going forward, you'll see a change even this quarter, October q three, you'll see a change in domestic. I... It will be gradually. It won't be a magic, but you'll see a change in both export and domestic in solid terms. Perfect. That that that sounds really good. For for Middle East, there's a Middle East Middle East as a whole has been a very large market for us, you know, and a very big growth driver as well for export engine.

29:59 Sir, if I was to say if... With all this boy, if if I was just to say a silver lining, so there's a lot of reconstruction effort going on after entire war comes to end... To an end. So do we see that... Or do we see at least some bit of some bit of movement meeting Middle East can be a much larger job because of the entire infrastructure. Right? Middle East can or is still a very big geography for us. The last q two, I think there has never... There has not been a downfall in the Middle East market, Gulf market. And even right now, there is nothing at all like this. It is just that we are just taking precaution that if the war happens again and if the airspace, if everything is shut down just like it happened in q one when all the seaports were closed in Middle East, then it might be a problem. As as of now, we are not seeing any problem there at all. It can be an opportunity also.

30:57 It's not good to say that, but it it is it is... It can be or it is an opportunity for companies or building material companies because definitely there will be construction happening again there. And your other question was during... Due to this price, raw material prices going up, sometimes it is an opportunity for all the organized players for any industry who are into Indian and export market because in such case, an organized company has the capacity or the capability to actually play the market in a proper way. So in terms of volume, so that is where we can... Now we are focusing more on volumes so that our top line increases. Definitely, the margin would further increase. And whenever there is a slight reduction in any of the raw material, there'll be a jump on the entire margin.

31:49 Perfect. Perfect. Thank you so much for taking all my questions so patiently, and wishing you and the team a very happy, Denali. Thank you. Wish you all the very best. Thank you. Next question is from the line of from Analytics. Please go ahead. Hi. Thanks for the opportunity. Firstly, congratulations to you, entire team, the for commercializing this much awaited new plan to pass. Really excited to see the performance of this one, and all the best too. So just one question. In the last couple of calls, we had mentioned that going forward, our focus will improve on domestic business as well, and we were looking to take some price entry.

32:40 So... And like you mentioned to our previous participant that you have taken some price increase, but then when we see the sheet, the volume data, we see some price increase. So is this because of the price increase that we have been facing issues to push this, or is it more of a mix change or, you know, more of a demand situation on the ground? If you could just help clarify that, please. We have taken the price increase as of any other organized player. If I talk about the volume dip, we have actually stopped selling the commodity product in the market, which generally you call it as liners. Earlier, we were selling almost 300,000 sheets every month of liners.

33:25 So just to change the market perception that we are not a liner king anymore, we are just focusing on the value addition product. That is where you will see the volume decrease, but the value would be the same. So we are not focusing. If you want, we can right now also just open the market, sell 300,000 sheets every month immediately without any problem, but we are not doing so. So we have... That is why we are revamping everything. We have taken some steps where the reputation... The Indian domestic reputation changes for Stylam. That is why it might take one or two quarters more, and you will see a drastic change in value as well as volume in the in demand. That's really good to know, sir, and I'm sure with a couple of quarters, we'll be able to do the most. It may much better. Sir, similarly, on the export side, if you could just help us understand the stepping aside from the whole logistics issue and all of those things in terms of now with the new line coming up, do we expect better realizations?

34:32 But I know our realizations are already top notch. But now with the kind of pressures that we have added, do we see value growth along with volume growth also as a possibility in coming two, three quarters as the new plant fills up? If, yes, if you would just quantify how you are looking at it. See, you're correct. See, firstly, I'll say with the new plant coming, it's a complete new plant, latest machine, latest technology. That that means the maintenance cost will be almost zero in the new plant for the next one or two years. Operator request has been initiated. If you'd like to cancel this request, please press 0 again. So so in this case, you can see that automatically the margins will be better there. Secondly, if there is a slight decrease in raw material anywhere, you will... I think we expect better margins there, the second part.

35:23 Got it. So any numbers you'd like to add on to that or will you wait? The numbers numbers, we cannot commit because, again, depending on the situation, the raw material situation, if there is slight decrease anywhere, you'll immediately see the numbers in any of the months. Right now, what is happening, the raw materials at the peak, I think you can say it is more of a... Sometime it is more of a cartel also by all the traders, all the raw materials suppliers, but it is at the peak right now. Got it, sir. That is from my side. Thank you, and all the best to you and your... And the entire team. Thank you. You. Next question is from the line of Resham Mehta from GreenEdge Wealth. Please go ahead.

36:14 Hello. Yes. So first is just a suggestion. I think since you all are saying that realizations per kg is the right metric to look at, it would be great if you all can start disclosing the volumes in terms of kg or tonnage, right? Because what the data that we get, I think, is just the sheets. That was one suggestion. My question is basically on the export side because of whatever disruptions that we are seeing, have you lost out on any revenues in the second quarter, meaning that the 16% reported revenue growth that we are seeing, could this have been much higher? Ma'am, thank you for the suggestion. Definitely, we will start doing so from q three because in our case, maybe a shade value is not appropriate or the correct way because it's always a mix of thin laminates, compact laminates. So we... There is no point discussing. You're right, and we will definitely make it a point to make it in our presentation and as well.

37:20 For the second thing, yes, the... We have also seen a drop, a little bit drop in q two because in such, we were not able to get containers from Middle East as well as Europe because it was just not only due to the ocean freight, but even there were multiple vessels being skipped for India. So there was a... I was not a big amount, maybe two to 3%. We would have definitely increased our sales more in the export. And would you say that the container availability issue has, you know, kind of been mitigated to some extent? Because I think that's what we are hearing from, you know, a few companies across different industries that the situation has got better. So just as I think from your side. It has gone better, but we won't say 100% From worst to better.

38:10 Got it. Got it. And lastly, on this 16% revenue growth that we are seeing, can quantify what would be the breakup in terms of price realizations or product mix and volume growth in terms of tonnage? Ma'am, we can send you that data. If you can just email us, we'll send you the data separately. Sure. Sounds good. Thank you and all the best. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants, please limit your questions to one per participant. Next question is from the line of Kesha from HSBC Securities. Please go ahead. Hi, Kesha. My question is already answered. Thank you.

39:01 Thank you. Next question is from the line of Lovesh from Berman Capital Management. Please go ahead. Hi. Thank you for the opportunity. Am I audible? Yes. Yes. Sir, I think you mentioned in your PPT as well as on the call that site cost and ocean... Sorry. Site cost and and gas prices affected our margins. So I just wanted to understand how much of the increase in other expenses was 58 crores last quarter and 77 crores this quarter. How much of the increase in absolute terms would be due to these two factors? If you can help us quantify that. And and the the rest of the other expense increase was because of what each factor, sir?

40:05 Yeah. This is hardly any increase in other expenditure or prime... This is primarily increase in ocean freight and fuel expenses. Only because we do only 4% EBITDA. Yes, ma'am. So if I see the number reported in one q of this year, we had around 58 crores of other expenses. In two q this quarter, it is 77 crores. So that's a delta is around 19 crores. And from what the numbers have told me, 11 crores is because of ocean freight and from PNG price increase. I'm understand... I'm trying what's the other part which has increased? Some of the... If you see the volumes have also gone up. Some of the expenses, of course, they move up according to volume, basically.

40:53 Primarily, this is 11 crore is disproportional expenses that we have explained. Rest are proportional to the increase in basically production and sales. Understood. Understood. So, sir, for that increase, crores that we are seeing, by when can we expect to have Sir, should you have a further question, please rejoin the queue. I just have one question. I'm... That's my second question that I'm asking. If you can allow, please. Sorry, sir. Please rejoin the queue. Next question is from the line of Vipin Vijaya from DSP Mutual Fund. My question is pertaining to the finance cost last year. In H1 FY 'twenty six, it is shown INR 9 crores, but in full year basis it's 3 crores.

41:51 So what led to this decrease of finance cost of INR 6 crores in the second half of FY 'twenty six? See, earlier, we were having the surplus in our hand, basically. And now you know... You have seen that new plant has come up on that. So whatsoever surplus was lying, that has been used for our basically new plant. And now we have started utilizing the working capital limits to some extent. That should increase the cost. Should not decrease the cost. Finance cost has decreased from nine in h one to three in full year basis. That's why that's 01/2025 Last year. Last year, was When was that, sir?

43:04 Last talking year, about. I'll just clarify, sir, so that we... It is better for you to understand.

43:55 H one f five twenty six, finance cost of 9 crores. Full year f five twenty six has a cost of 3 crores. So if the loss is there in also, it should reflect in the full year also. If I get to say, sir, h one, we had a a loss on power contracts.

44:41 Then in H2, we have had some profit which recovered that loss. Is that understanding right? Yes. And this kind of volatility in the power contract profit loss is kind of normal course of business or how we should look at it? If the dollar or euro prices are increasing, then they they will be definitely a contract loss. You need a dollar or euro price cutting out or there will be a profit. Because we we are looking for product contract on a a particular specific price. That I understand, sir. That I understand. I understand. I The loan office loss of $6.07 crores will be probably more profound than it is the the currency limits are higher. Right? And then they are much volatile.

45:31 Usually usually, such kind of volatility is not there. This is primarily, you know, the war started last year in the February. And by that time, dollar, euro, everything went up. That's how we were able to recover those. But if but if you know currently, the situation is so far as dollar and euro status, it is not that volatile. That's why this is not appearing this year in first half of this year. Okay. Okay. Thank you, sir. Second question is regarding the cash generated from operations this year. I think it is around INR 26 crores. Out of this INR 26 crores, 15 crores is coming from one line item itself, the change in other current financial liabilities. I think from negative 5 crores, it has gone to almost INR 12 crores. Can you just explain what is this? What's inclusive of our current financial liabilities and why the Please repeat the question.

46:28 Sure. So we have some kind of cash from operating activities of INR 26 crores, sir. INR 15 crores is coming from just one line item, which is other current financial liability. It was negative INR 5 crores in March and now it's positive INR 12 crores. So what is this other correct financial liability and why so much? We'll come back. So we'll come back on this. Please send us the mail. We will reply with it. Alright. Thank you. Thank you so much for taking my The last question is from the line of Deepak Ajmira from El Pro International Limited. Please go ahead.

47:15 Sorry. I joined late. So in case the question is answered, please pardon me. My question is largely on the JV partner. How we are planning to utilize their strength? Second question is on the new plant. What percentage utilization by this year and by FY 'twenty eight? And on the domestic side, what is our plan? And going forward? Because three area where you were focused. You're right. I think all the questions are exactly being answered twice or thrice in this forty five minute call. But anyhow, for AICA, there is nothing as of now. We are still discussing and talking to them if any opportunities are there with them. The second question, the plant, I think we are expecting maybe twenty five, thirty percent utilization of the new plant in this year. Definitely 60 to 70% plus in FY '28.

48:15 Third third question, answer is domestic. We are revamping it as we've already told, and you will see the numbers in q three and q four going forward. Thank you. All the best. Thank you. As that was the last question for today, I now hand the conference over to the management for closing comments. Thank you so much. Thank you very much, everyone, and hope to see you again in the next conference. Thank you. On behalf of Systematics Shares and Stocks Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.