Ladies and gentlemen, good day, and welcome to the conference call for analysts and investors for quarter results discussion for quarter one of financial year 2023-24, Arvind Limited. As a reminder, all participant lines will be in the listen-only mode, and there is an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your telephone. Please note that this conference is being recorded. I now hand the conference over to Mr. Samir. Thank you, and over to you, Mr. Samir. Thank you. A very good afternoon to all of you, and thanks for participating in this call to discuss our first quarter results in this financial year, FY 2024 of Arvind Limited. Joining me today is Mr. Punit Lalbhai, our Vice Chairman and Executive Director on the board, Mr. Jayesh Shah, who is our Group CFO as well as an ED, Mr. Mahesh Shah, who heads up our MIS, and we have Mr. Satya Prakash Mishra, who has joined us as our new head of investor relations. In fact, some of you may be familiar with him, and he will be your new point of contact going forward and provide you with all the information and other inputs as needed. Talking about the business environment before I get into the results, the environment overall as relevant for our businesses still is a bit uncertain. You know, separating the two parts, the U.S. consumer demand has been softening, but contrary to what was expected and feared, that in response to very sharp increase in interest rates to fight inflation, it will fall off the cliff. That has not happened, clearly, right? Quarter after quarter, most major brands and retailers have been reporting results, which have been slightly better than what they thought earlier. As far as Europe and U.K. is concerned, the political situation there has been already baked in. I mean, the war is more than a year, year and a half old now, and there is no new information. So the political and economic outlook there is not changing. So overall, the apparel demand globally has been relatively stable and sort of in a holding pattern. So while there is no, no great news, but there's no bad news also. And, people are kind of being cautious. Nobody is taking any long-term bet on which way the, the market will go. But overall, it continues to be stable and good. In contrast, the domestic textile and apparel markets have been seeing some decline for the last two quarters. If you might recall, last year was a bumper year for the initial three quarters, and since, you know, February time frame, things have been softening. So as we stand, all eyes are on the Diwali buying season. Diwali this year is scheduled for mid-November, so the wholesale buying to service that demand is expected to start next month. Talking of commodity prices, they have certainly come down, especially freight rates are now close to pre-COVID levels. Cotton price, which is our key raw material, is at about INR 55,000 a candy, roughly speaking, which is closer to the MSP prices. Of course, you know, pre-COVID, it used to be INR 40,000, but compared to the fact that it has shot up to more than INR 1 lakh a candy last summer, it's a huge relief. Now, in this whole broad context, coming to the specific performance we've had, our first quarter results were quite good and very much in line with what we had guided at the beginning of the financial year. So it was sort of flat on a sequential basis compared to the Q4 last year. So specifically, in the numbers, Q1 revenues were INR 1,853 crores. Excluding other income, our earnings before interest, tax, depreciation, and amortization, EBITDA, was INR 180 crore, which translates into an operating margin of 9.7% overall for the company. PAT was reported at INR 66 crore. A few comments on the segments. Textile volumes, especially in the export markets, were quite stable, in fact, slightly stronger quarter-over-quarter. Denim volumes have started to recover, and we sold 13 million m in this quarter. Woven volumes slipped by 2-3 million m, primarily in the domestic retail segment. Garment volumes also have started to recover and they improved compared to the previous quarter and stood at 7.4 million pieces. Overall, textile revenues stood at INR 1,418 crore, which was very similar to the quarter four of last year. So in summary, the textile performance was flat as compared to the previous quarter. AMD continued its growth. We have kind of guided that it will continue to grow at 20%+, and compared to the Q1 last year, this year's revenues were 33% up. EBITDA margins improved to 16.5%, and mostly it's a result of the softer input costs, and this resulted in the operating profit of INR 53 crore. Going forward, we expect volume growth in both garments as well as to a small extent in denim to continue in this next quarter, and we expect woven to stabilize around 30 million m and give a steady performance. So this slight improvement in the overall textile volume should give us some operating leverage, and that should translate into slight increase in the margins as well. As we had shared in the beginning of the year, we have started upon an ambitious INR 600 crore CapEx program over a two-year period, which will help us boost up the AMD and garments capacities. So that continues to be on the track, and we expect the revenues in these growth engines to kind of keep inching up as time progresses. Textile margin should also see a marginal increase compared to Q1. We continue our trajectory of reducing our long-term debt. That has been one of our stated objectives and agenda for last several quarters, and even in the quarter gone by, we have repaid INR 123 crore, taking the long-term debt levels to INR 529 crore. So overall, net debt stood at INR 1,301 crore at the quarter end. Overall, we expect that the long-term debt will continue reducing while the working capital will increase in tandem with the increase in the business volumes and activities. I'm going to pause here. This concludes my opening remarks. Before we open it up for questions, I'll request Punit Lalbhai to share his perspective on the market, the state of our business, and overall performance. Thank you. Over to Punit. Good afternoon, everyone. It's a pleasure to be here. I would describe the current market environment as extremely challenging and the fact that we achieved our budget for the first quarter under these circumstances come very close to our budgeted EBITDA numbers is quite heartening. If you look at the overall results, they are, they don't show much growth. In fact, de-growth from last year's Q1, which was actually in a very different market scenario, which was full of positivity. And since the year has progressed, we have seen challenging market conditions prevail for quite a while. However, if you look under the hood of the business, there are many things to be very optimistic about. So I think denim and garments that were showing a very downward trajectory for the many quarters in a row, I think the worst is behind us, and we have started showing growth, and future conversations cause for more optimism. The structural change, the One Arvind policy, is now in full effect. So the entire textile business has been consolidated under one leadership. What that means is that we have a single cost structure, so consolidation of cost structures, consolidation of marketing resources. And one sort of service level point for the customer, where our entire vertical offering is much more coherent. We see this will unlock value going into the future, and already has been received quite well by all our customers. Of course, the advanced materials division, we are on target to deliver a 20+% growth as promised this year. Quarter one, we have achieved our budget numbers and a 23% growth. So we are firing on all cylinders there. Overall, I would say that the worst is behind us. What gives me that sense is that when we talk to our customers, the inventory situation is now finally looking like it's at a point where buying will begin. So the future order book and volume, which has been the main cause for a flattish growth, should start to see reversals. Of course, in an uncertain world, predicting too far into the future is always full of hazard, but I do believe that the worst is behind us. So with that, I open the floor for questions. Thank you very much. Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their telephone. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Participants, you may press star and one to ask a question. We have the first question from the line of Varun Bafna from Fulity Securities. Please go ahead. Congratulations for single set of numbers in this challenging export scenario, especially. So, my first question pertains to, you know, on the export side. I think the entire, you know, basket of Indian companies are experiencing turbulent times, and the volumes in the last quarter was not, you know, pretty significant. And it looks like the restocking, you know, which was undergoing in the global market. How the scenario looks like maybe for coming 2Q 2023 and 2Q 2024, because the next, you know, fixing orders are going to come anytime now. So if you could guide on that, you know, how are we seeing that market to play out in maybe coming two or three quarters? It'll be really helpful. My second question pertains to domestic side. You know, yes, it is true that the last two quarters we are seeing some sort of lull because, you know, most of the traders were anticipating that the cotton it won't come down, which has already happened. So now can we expect, you know, the restocking to again begin in market, and it could see Q2 a little better than what we have seen in Q1 and maybe, perhaps a far better second half. So some guidance on that it'll be really helpful. Thank you, sir. Thank you for the question. So traditionally, if you look at our business, the second half generally is a lot better. So Q3 and Q4, just by the seasonality of how both the domestic and export markets work, should be a lot better than Q1 and Q2. Last year was an exception. However, this year we see it reverting back to the normal pattern, where we are budgeting a much stronger Q3 and Q4. As far as Q2 is concerned, we do see an improvement. The visibility shows that Q2 should be better than Q1. And then there should be, as you rightly said, better improvement in Q3 and Q4. The domestic market remains extremely sluggish, especially in the value price points. Products under INR 1,000 retail are struggling. The higher value price point is slightly better. This year also, the festive season is a little later in the year, so we might see some prolonged sluggishness in the domestic market. But as I mentioned, the export market inventory levels are now looking quite bare and brands would start buying in larger quantities. That is the expectation as we head into the second half of the year. As far as cotton prices are concerned, we are very close to the minimum support price, so the downward room is very little as far as, you know, we are concerned. We feel that, you know, we are quite close to as low as we can go. Thank you. Yeah. So just one on the denim side and especially on the garment side, which were little bit languishing, you know, for last two, three quarters. Can we see, you know, both these segments bottoming out and maybe going into Q2, Q3, we'll be seeing some improvement in the market utilization and as well as overall contribution towards profitability? That I think will be equally helpful. That's all from my side. Thank you. So Q2, Q1 is already better than Q4 on both these counts. And, Q2 and Q3 should be slightly better, and Q4, as far as denim is concerned, should be significantly better. So that's the seasonality pattern. Q3 is always a low quarter for denim, but it will be better than... We expect it to be better than Q1. So Q2 and Q3 better than Q1, and Q4 significantly better than Q1. And Q1 is better than Q4. So yes, the improvement trend should continue as we go through the year. Towards the latter half of the year, it should look significantly better. Can we have the next question, please? Thank you. We have the next question from the line of Zakir Nasir from Nasir Investments. Please go ahead. Sir, good afternoon, and I think congratulations to the management for a robust set of numbers in a visibly weak textile environment. Sir, we hear the reports of textile mills, especially yarn, closing down their production, and yarn being available at multi-year lows. What is your thoughts on this? Would this reflect into better margins for Arvind? So today, yarn prices are soft. However, the demand is also soft, and generally, you know, in a B2B environment, the softening of raw material means, and in a soft market, means that you also have to pass on some of those improvements. So while there is a lot of work happening on operating efficiencies and a more sort of leaner and more targeted organization structure, those gains should stay with us. But to bank on raw material prices, you know, giving us the overall margin improvement, I think that's short-lived. There is always a lag. So yes, short term, lower raw material prices mean better margins, but we have to do more to maintain those margins, and work is happening to ensure that we do. Sir, this weak environment, could you just throw light on how Arvind is different? Because we see weak numbers from various other textile companies, including yarn, including home textiles. Where does Arvind score over these factors in terms of? It is a very robust result in this environment, sir. Your thoughts on that, sir. So I think, the way the year is planned and the way we see it playing out in the market is that export buying should start increasing from here on now, because the inventory pipelines are quite clear. So as our volume will increase, it will help amortize the fixed cost, and our margin should increase. So we'll refrain from quantifying exactly how much that will happen, but that impact should be visible as we go further in the year. As far as, you know, Arvind's strengths are concerned, we are one of the few players that can offer innovation, sustainability, design, and verticality, all in on one platform. And so our customer relationships over decades are extremely strategic. So from that perspective, you know, we have an advantage over the vast majority of textile players that are like us globally. So I think that's our competitive advantage. Of course, we have to do all the things that we need to do well, which is execute our garment expansion strategy extremely well. And then, of course, we have AMD, where we are very uniquely placed, where that is becoming a bigger and bigger part of our overall portfolio. Where the competitive landscape, the market conditions, and the margin profile are all very favorable. Sir, you announced a INR 600 crore CapEx over the next two years. So what would be your thoughts on the debt level at the end of 2025, because over the past two years, you have been guiding that you would want to see the debt around INR 1,000 crore, sub-1,000 crores. So, would you say that with this? I lost you halfway. Can you just repeat your last sentence, please? Sir, with the management guiding that they would like to see the debt sub-INR 1,000 crores, and you've announced this INR 600 crore CapEx over the next two years, where would you see the debt being at the end of 2025, sir? March 2025. So, you know, for the current year and, and when we spoke in May, about the current financial year, we said that, we will continue to reduce our long-term debt to around INR 650 crore then, to, by about a few hundred crore this year and similar number next year, with INR 600 crore of expansion plan included. However, we will not restrict ourselves to, a number as far as working capital is concerned, because as the business grows, we will continue to, of course, keep the norms very tight, but let the working capital grow to help us achieve our targets. But long-term debt will continue to trend down to as low as possible over the next couple of years. Thank you, sir. My last bit would be, would we, as investors, see the magic INR 10,000 crore figure in top line this year, sir? Thank you. So, if that is a hope, it's not, it's not a question, it is fine. But if that was a question, you know, I think our volumes are set to grow significantly, over as Punit just mentioned, every quarter, you should see volume growth coming in for various product categories, including denim, garments, as well as our advanced material. But there is a price deflation. So if you look at, say, denim price a year ago, today, it's 15% down, because the raw material inputs also have gone down. So in a way, while still growth of volume, we aren't sure or we don't want to put a number on sales number, but we want to make sure that, A, volume grows, and B, in line with the growth in volume, we improve our absolute EBITDA as well as percentage EBITDA. Thank you, sir. Best wishes to you and team Arvind. Thank you. Thank you so much. Thank you. The next question is from the line of Prerna Jhunjhunwala from Elara Capital. Please go ahead. Hello. Hi, Prerna. Hi, sir. I have two questions. One, on your INR 600 crore CapEx, would like to get some clarity where we are spending and how much when? So we are spending mostly on AMD and garments for growth, and we will... We are doing maintenance CapEx in fabrics and debottlenecking CapEx in fabrics to be able to keep us relevant from an innovation and product perspective. So it would be, you know, maybe for 40, 30, 30 AMD, garments, maintenance. Okay. So 30% CapEx in garmenting, which means around 180-odd crore INR to be spent in garmenting. How much of revenue increment can be seen, can be seen on that? Prerna, this should give us approximately 15 million garments as we invest this money. At our average price of about INR 500 that we sell, it will be like between INR 750 crore-INR 800 crore of revenue. Okay. And sir, do we have any benefits in the cost structure or garmenting business that we are expanding into the greenfield, brownfield, any area-related benefits, et cetera? Well, so those are there, which are more relating to the capital expenditure, some subvention or interest cost benefits or some labor subsidies will be there. But I think, the way we are looking at building this plant would be completely differently and significantly higher on automation and less, manpower dependent or skill-based dependency. So, so the maybe the CapEx will be slightly higher than what otherwise one would do, but it would help us reduce our operating costs and bring in efficiency and reduce the learning curve. Okay. Okay. And if we go yourself mentioning the average realization, will it be possible for you to share the product that we are trying to manufacture in this? Across the board, Prerna, we are investing in augmenting jeans capacity, in shirts capacity, our knitwear and activewear capacity. So we are in all the product categories that we are, we are expanding. So, because we believe that as soon as possible in next few, maybe 3, 4 quarters, we will exhaust what capacity we have, and we'll need extra capacity. Okay, that helps, sir. And, sir, a little more bookkeeping question. This time your margins have improved on a Q-on-Q basis in the core businesses, but on other businesses, we have faced... We find it difficult to understand what has led to a patchy decline while our core businesses have definitely grown. Sure, some. Sure, Prerna. So let me try and explain this. So some of our businesses, which are smaller in nature, be it our water effluent treatment business, some part of some commercial telecom business, the project, they are all project-based, and we end up booking sales in phases as the project progress happens. As a result, you see lumpy sales and profit booking. But when you look at a bit long term, maybe three, four quarters, that will even out. If you look at in the near term, if I were to, you know, talk about the next few quarters, as we continue to maintain our AMD margin to between 14.5 and 15, and we see textile margin improving as we increase our volumes in garments and denim, our overall margin, which stood at 10.4 in Q1, should also see an expansion. Okay. So do we see these margins reaching 13%-14% eventually in next three-five years? At the moment, we expect that, Prerna, but we are all working hard to continue to improve margins from here on, and you will see that trajectory, you know, happening as we move. I think there are two points. One is, of course, improving and scaling up our volumes in capacities where we have, which is denim, some of the garments, but also bringing about operational efficiencies within our system. As Punit just mentioned about, you know, putting all the textile business under one leadership, making One Arvind. All of that should give us enhanced, you know, operational... I would say it would consolidate the operations and give us, you know, cost efficiency. So margin is the single most important focus area for the company, and we are all striving to achieve that. Okay. This is helpful. I'll submit the questions to you a little further. All the best. Thank you. Thank you. We have the next question from the line of Vikram from Axis Stock Broking. Please go ahead. Good afternoon, sir. Good to see you are showing optimism in volume growth going forward. So just wanted to understand, this optimism is based on, are you seeing some kind of increase in order book in textile segment, or at least there is some increase in discussion or inquiry in this textile segment? What is leading you to this optimism in volume? So there are three things that are an indicator of the future. One is the immediate order book that one has on hand for the next quarter. The second is the development pipelines that is likely medium term for the next, not an immediate season, but the next season. And third is the conversations that you have with customers around their business and how they are seeing the market. So on all these three points, compared to the past, the discussions that are ongoing are more positive. So we do have a more robust order book for Q2. The order pipeline for the development pipeline for Q3 on the core textile business is quite robust. And three, we are consistently hearing across the board, especially with our export customers. On the domestic side, as we enter the second half of the year, the festive season should come to the rescue. We are consistently hearing on the export side that the inventories, inventory clearing activity that was leading to brand buying significantly lower than what they would normally do. That inventory situation is now at a very, very healthy level, lower than pre-COVID levels. Buying should begin. All these three factors give us the sort of indication that things should look better. Of course, you are very right, that there is always going to be uncertainty till those orders are locked in. While there's good optimism, we still need to go through the time period with a cautious outlook, but we are cautiously optimistic. On that also, sir, do you now in textile you have several segment. You have fabric, knitting, and woven, and then you have garmenting and a lot of things. So do you think, based on past experience, based on your discussion, do you think all the textile segments would recover simultaneously? So, sir, suppose if tomorrow we hear that the export demand, textile export demand is going up, does it mean we should automatically assume all the textile segment should, would recover simultaneously? Or do you think some segment would be slower recovery or some, and some would be faster recovery? So I think if you study the recent trend, post-COVID, the work from home segments like denim and knits have really suffered over the last four, five, six quarters. So I think the optimism, while wovens has been strong throughout. So we expect no change in wovens, and we expect denim and knits to start showing. Denim has already started showing improvement, and knits should start, hopefully start showing improvement, in a quarter or quarter and a half. That's our hope and is backed up by the conversation and immediate data. My final question, I need this one. What would be the asset turnover ratio for this new capital that you are doing in garment and AMD? So both garment and AMD are significantly higher asset turn businesses. So we can, we can assume an average. I mean, it varies from segment to segment, but across both these categories, it should be a 3x kind of asset to turnover ratio. 3.3 asset turnover ratio. Yeah. For both, AMD and garment? Yeah, both are similar in that regard. Okay. Okay. Thank you, sir. That's all. Thank you. Thank you. The next question is from the line of Monish Ghodke from HDFC Mutual Fund. Please go ahead. Yeah. Thank you for the opportunity. So what is the rationale of expanding into garmenting when our existing capacities are not utilized fully? We expect them to be utilized fully by the end of the year. Okay. If we don't start creating now, we will hit a bottleneck. Okay. Sir, like, when I observe Arvind's financials over a long-term basis, I don't see much of a operating leverage benefits kicking in. Like from FY 2021, when our revenue was INR 5,000 crore, in FY 2022, it became INR 8,000 crore, but there was no significant improvement in EBITDA margin. Our expenses also increased. So what is the reason that we are not able to get that operating leverage benefit? I think, Monish, if you look at, you know, individual pieces, so for example, when you look at Advanced Materials Division, you will see that as the turnover is growing, the margin is continuing to grow. In textile, the 2021, 2022, and 2023 have been very unique or very different kind of situation, where the costs went up so much that the percentages are, you know, lost meaning. In a way, the cotton went up two times, and we are, you know, in B2B business. So, actually, the price increase came with a lag effect all the time. So, it will be, you know, in a way, if you look at our gross margin, actually went down as the input costs went up. And now the reverse is true. As the operating margins are, or rather the costs are coming down, our gross margins have started to look to pre-COVID levels. And unfortunately, at this juncture, we don't have enough volumes to see the operating leverage. But as I said, that as you see in coming few quarters, as the volumes do increase, we see some kind of an improvement seeing on the operating leverage on account of that in the margin. Because like FY 2022, first off, was a year when a lot of players had inventory gains, because cotton prices rose much later and many players had a cotton inventory at hand, which was got at the lowest price. So even in that year, we didn't have significant improvements in margins. Oh, we did not have, Monish, any inventory, which we had an inventory gain. So we were buying in FY 2022 because the market conditions were so uncertain that we were buying only based on the orders that we get. We did not take that risk of buying cotton inventory in absence of a market or order. Okay. Even in this quarter, if I ask, I mean, on a sequential basis, our top line has reduced, but our other expenses and employee benefit expenses are still on a higher side as compared to Q4. You are right. Every year in Q1, it will give salary increases, so that way it takes effect from April 1. However, the sales have not come in. As I again mentioned just a few minutes back, the sales have not come in, and as you see the sales coming in, you will see the percentages of overheads getting spread over higher turnover or higher volume, giving us the operating leverage. Okay. Okay, sir, thank you. Thank you. The next question is from the line of Janice Chida from Spark Private Bank. Please go ahead. Good evening, sir. Am I audible? Yes, you are. Yeah. So, I have three questions. One is on the operating outlook on the operating- Sir, sir, I'm sorry to interrupt. Your voice is breaking, actually. Hello. Am I audible, sir? Yes, sir. Please continue. Yes, sir. On the cash flow, what is your outlook on the- I'm sorry, we are not able to hear you. We are not able to hear you. Hello. Yes, sir. Please continue. I think cash flow, what is your outlook? That is the first question. Maybe you want to redial or something because we are not able to hear you at all. Mr. Chida, we would request you to kindly rejoin the queue as you're fifth. We move on to the next question, which is from the line of Surya Narayan Nayak from Sunidhi Securities. Please go ahead. Hello. Yes. Uh, yes. Yeah, yeah. So, if you can throw light on the status of the AMD and garment division, the progression, the CapEx. Number two, whether any initiative of new... I mean, we heard some IPR-related new products to be introduced. So are we in the process to introduce new products in the current year, or it will be in the subsequent year? So two questions. So I think both garments and AMD investments are on track from two perspectives. One, we are building the requisite teams to ensure very strong execution and smooth sailing, especially on the garmenting side. And second, the capacity expansion is also happening. So I think we should be able to meet the guidance on the kind of growth that we are anticipating from these investments. As far as products in AMD are concerned, every year we try and introduce products that give us a competitive advantage, and every year we are filing new IP. And that is one of the reasons why we've been able to grow so well in mature advanced material markets like the U.S., Middle East, Australia, Europe. And so that's a constantly ongoing process. If you ask about the categories, we have three major segments. We have human protection, we have industrial, and we have composites, and this year we are going to see significant product capability enhancement across the board. So, are we entering NTT technology missions criteria of around 12 segments? So, are we entering into any other areas like Protech and other areas in major way? Because we have presence, but, you know, we derive very little from those segments. No, so I think composites has a component of sports tech, where we- Okay. make carbon fiber sports equipment, and that's a very, very young business for us. Right. But in the future we see very good potential in this product category going forward. So that's part of the composite structure portfolio. However, we want to remain focused, so, you know, we will remain focused in these three verticals and avoid adding a fourth. There's significant headroom for growth globally in these three, and we have a lot to do to achieve our ambitious targets. When can we expect the incremental CapEx to kick in? Because we have around 20% headroom available for this year. So when is the timing? Is it happening in the second half? So it is. It's a continuous process, you know. I mean, the... But the bigger, so the turnover of the investment we will make this year should start being visible next year. Okay. And, as well, what will be the taxation? It has spiked, you know. So whether you have guided, I think around 22% for FY 2024. So, It should be at 22% as the year progresses. Okay. So, we continue to, you know, budget 22% for the year. The forestry project, will it be completed, or any further investment to go this year? What project? So it is, we continue to, you know, complete the project and continue to receive cash flows. Okay. In flow this year also should be between INR 50 and 70 crores. But it is net of the expenses we are incurring. So, the net that we still expect, for a couple of years to have INR 50-70 crores cash flows coming. In terms of booking the project completion, it should be more like, next financial year. Okay. So, recently the yarn prices have melted quite a lot. So in this light, we generally, you know, plus outsource the yarn, except for the denim segment. So, will it be suitable if we let's say we produce less internally and buy, suppose, you know, because the competition is very high and the prices can go down to any level. So if that is the case, then will it be making sense to outsource entirely yarn and, rather than making in-house? So there are, you know, variable and fixed costs associated with the spinning assets that we have. If you look at, you know, what we are doing is that, as Punit mentioned, that we are doing a lot of product innovations and making specialty fabrics. So most of our yarn, which we make in-house, is something special and not commodity yarns. All commodity yarns we buy from the market, and we gain or lose based on the market price. So what would be your outlook for the yarn segment? I mean, yarn area, will the yarn prices be subdued for this year? Because, you know, what I'm hearing is that a lot of mills, bigger mills are adding their capacities and resulting in, you know, the stored loss. And if that is the case, then we will be, you know, in a better position, you know, going ahead. So what is your assessment? So the yarn market, currently is very subdued, and I think it will continue until one, domestic demand picks up, because a lot of the yarn suppliers in India are very domestic market-dependent. And second, towards the second half of the year, yarn demand should also pick up globally as the buying, because of reduced inventory holding by the brands, increases. So I think for some time at least, it's looking like a difficult market scenario for yarn. Fiber, what is the component of outsourcing? Is it nearly 80% cotton or rest, you know, MLM? Yeah, something in the mid-70s should be cotton, and the other 15, I mean, about 20%-25% should be other fibers, as far as our fiber blend is concerned. Okay, sir. Thank you, sir. Thank you. We have the next question from the line of Vikas Jain from Equirus Securities. Please go ahead. Yes. Hi, good evening, Jainbhai. Good evening, Sumit sir. So one question from my side. Firstly, with respect to the textile segment, while there was some sluggishness on few of the segments that we witnessed for the denim and the woven realizations, given the current cotton prices and which are to a certain extent a bit stabilized right now, are we expecting a further decline in the realization, given the subdued visibility and the discussions that we have with the customers? So as you said, cotton is stabilized, and most commodity prices, in fact, have stabilized or given, you know, in the starting from part of June and even now. We don't see too much a fall of selling price from where we are today. It will of course change based on the product mix that we do. So if the product mix is, you know, more towards premium products and more towards export market, which takes those premium products, the sales price may be higher or remain bit higher, but otherwise, product to product, like to like, we don't see too much of compression of selling price now. Okay. Okay, got it. Second question is with the AMD segment. While our CapEx plans is spread out over the next two years, that is 2024 and 2025, given the current AMD capacity, what is the current utilization and the peak revenue that we can see right now? We are sort of on an investment trajectory that will allow us to grow at 25%. So even this year, I mean, based on the investments we've done over the last couple of years, we should be able to grow at 25%. And as we speak, some of the capacity expansions are coming into play even this year, later part of this year. So we should be able to continue the trajectory of the growth, 20%+ for next financial year. Got it. Thank you so much, sir. I will join back the question. Thank you. Thank you. We have the next question from the line of Jayant Mamania from Care PMS. Please go ahead. Yeah. Good evening, Mr. Punit and Jaiswal. Good evening. Yeah. In case of denim, in Q1 2023, our volume was 20 million m. It has come down to 11. This month, it has reversed to 13 million m. So I wanted to know whether the denim business was contributing to the bottom line during these last four quarters, and at what capacity the margins will be the average 10%? So, the denim business has been positive throughout the four quarters that have gone by, where volumes have been under pressure, because we our products that we are selling are at a much higher sales price, as you know, compared to the industry. And the margins have been closer to two digits already, and we expect it to further improve as the volume growth comes in. The main reason for the drop in volume was the high cotton prices in India. This year the prices will be at international level. Will that add to substantially to the bottom line? So cotton prices were one of the factors. I think the overall market demand for denim as a category also went through a sort of very challenging period globally, as people bought more wovens and sort of cut down on denim buying. And denim was one of the product categories where international buyers had the highest inventories. So their buys have been the lowest in denim, and that was that, along with, of course, domestic, as you're rightly said, price. I mean, it got outpriced as a category for many consumers in the domestic market. So all these things came together to see a much reduced demand for denim, which is now slowly correcting. I think in denim, you know, what has been unique to Arvind is that we've done a lot of operational improvements, and that has really, on even a relatively lower base, our margins, our EBITDA margins, which were low single digits at the lowest point, are now close to two digits. So, there's a good improvement in operating parameters as well, which will hold us in very good stead when the volumes get better. Do you think with lower cotton prices, we can reach again to 20 million m at end of this 2024? 20 million, I don't want to predict, but the trajectory of the graph will be upwards. Okay. Okay. So my next question is regarding our B2C business. This last quarter, we opened a 4,500 sq ft shop in Bangalore for textile. So what is the business plan for retail business, B2C? So we have an overall B2C business that is across the group, something like INR 800-900 crores. That business currently, because of the domestic sluggishness, is in a challenging environment, but year-on-year, this business has grown extremely well. And we have... We envision a very, very bright future for this business also. So, it is a very high return on capital employed business where, you know, essentially it's a brand play, where our Arvind brand is what creates the value. So, and it's a franchisee low CapEx model. So that will, of course, be adjusted to the market conditions, but overall, that business is on a high growth trajectory as far as the midterm is concerned. Yeah. So as I understand, Raymond is good at woolen business, and they are doing a turnover of around INR 7,000 crore in textile business. And Arvind is good at, say, cotton textiles, cotton fabrics. So, how we did in this quarter, and what are our projection for the next two years in terms of growth? So this quarter, we de-grew a little bit from last quarter because of the challenging market conditions. But overall, if you look at the last couple of years, we would have shown very robust growth, upward of 20%. And over the long term, short-term disturbances put aside, we should continue that kind of growth momentum in this business. Okay. Okay. Thanks a lot, and all the best. Yeah. Thank you. The next question is from the line of F.C. Daga from Daga Associates. Please go ahead. Good afternoon, sir. Good afternoon. First of all, although the Arvind is an excellent name, brand name, so far as your cotton textiles are concerned. However, can you visualize that or can we just have the max three years, four years, how do you visualize that, Arvind as a company, and then what are really your plans on top line and both bottom line margin? So we expect to I mean, if you divide the product categories into the two big chunks, one is textiles and AMD. Verticalization should drive the growth of textiles in sort of the 10%-12% kind of growth on top line. And AMD should grow at 20%-25%, between 20% and 25%. So, you know, we should be in the 12%-14% growth on top line if things go to plan. And bottom line, as we have been mentioning, as AMD becomes a bigger part of the portfolio, plus operating leverage, operating efficiency, garment factories performing better and better, all of that, if we factor in, we should see 200-300 basis point improvement in the medium term from where we are. So, definitely the potential is there to do well, both on growth and profitability and, but there's of course, a lot of work to be done, some uncertain times to be navigated through, and a lot of hard work all across the board to be able to achieve that. But it's definitely possible. That would be really, yeah, great. It will bring a great benefit to the company and the shareholder investor as well. Exactly. Thank you. Thank you. Thank you. The next question is from the line of Bajrang Bafna from CME Securities. Please go ahead. Thank you for the follow-up question. Just one humble submission, Punit bhai, in a couple of, you know, request- Excuse me, sir. Sir, your audio is not clear. We request you to use your handset, please. It's loud? Uh- Hello? Yes, okay. Continue. Thank you. Yeah. Punit bhai, just a humble submission, you know, which I am putting to you from the fund managers community, since we are talking to a lot of them. The other businesses are, you know, creating a lot of volatility, you know, on a quarterly basis and making, you know, prediction of numbers difficult for all of us. So there has to be some solution, you know, which we have already discussed about the business. So some solution to this and predictability becomes more easier for us, you know, to find solution for this humble submission from our side. Thank you, sir. Thank you. Now is there anything to add also? Yeah. Thank you. Suggestion is noted. We'll do whatever best we can. Thank you, sir. Thank you. The next question is from the line of Vikas Jain from Equirus Securities. Please go ahead. Thank you so much, sir, for the follow-up. Just one question. Punit sir just mentioned about a lot of streamlining of operations and bringing different segment entirely to one, all together, right? In terms of processes and everything. So what kind of synergy benefits or margin benefits can we expect if at all the entire process is completed or if it is like about to complete it? What is the benefit that we expect to derive from that? Like I said, that 200-300 basis points improvement can definitely come with all these factors combined, you know, so- He was talking about the One Arvind. So One Arvind, if you are referring to the One Arvind, sort of consolidation, so I think the first benefit will come in terms of, you know, clarity on, on sort of the customer proposition. So we are starting with the customer first. Of course, in the long term, you know, the operational benefits should also come. Like, for example, in denim, some of those operating, improvements have already started taking effect, where, you know, 2%-3% margin has already been unlocked in, in denim, even at low, sort of, volumes. So like that, you know, we are in the process of quantifying across the board, what it should be. But the short answer is that there is headroom there, and, we should see those benefits coming forward. It's a little early to be able to sort of start committing to those, those improvements before we have fully checked them internally. These changes are quite recent. Okay, cool. Right, sir. Thank you so much, sir, for the quick answer. Thank you. Ladies and gentlemen, we will take that as the last question for today. I would now like to hand the conference over to Mr. Samir for concluding remarks. Thank you, and many thanks to all of you for joining us. Our IR team is always there to take any follow-on questions and additional clarifications. So Mr. Prakash Mishra and his colleagues will be there. I will see you in one more quarter. Thank you and have a good evening. Bye now. Thank you very much, sir. Thank you. Thank you, sir. On behalf of Arvind Limited, that concludes this conference, we thank you for joining us, and you may now disconnect your lines. Thank you.