Ladies and gentlemen, good day and welcome to the Q4 FY 2025 earnings conference call of UFlex Limited, hosted by Dolat Capital Market 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 the conference call, please signal an operator by pressing star, then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sachin Bobade from Dolat Capital Market Private Limited. Thank you, and over to you, sir. Thank you, everybody. On behalf of Dolat Capital, I welcome you all to the Q4 and FY 2025 earnings conference call of UFlex Limited. Hope you all are staying safe and healthy. From the management team, we have with us Mr. Rajesh Bhatia, Group President and Chief Financial Officer, and Mr. Surajit Pal, Vice President, Head of Investor Relations. Now I hand the floor to the management for their opening remarks, and then we will have question and answer session. Over to you, sir. Thanks, Sachin. Good afternoon, ladies and gentlemen. Thank you for joining us today for the Q4 and FY 2025 earnings conference call of UFlex Limited. Let me draw your attention to the fact that on this call, our discussion will include certain forward-looking statements, which are predictions, projections, and other estimates about future events. These estimates reflect management's current expectation about the future performance of the company. Please note that these estimates involve several risks and uncertainties that could cause our actual results to differ materially from what is expressed or implied. I would now request Mr. Rajesh Bhatia, Group President and CFO, for his opening remarks, following which we will open the forum for an interactive question and answer session. Over to you, sir. Thank you. Thank you, all the participants, for the Q4 and the FY 2025 earnings call. Overall, I would say to begin with that a very satisfying year after we had shown that the revenue and the EBITDA had dipped in FY 2024 as compared to 2023. Yes, we had the reasons to explain for that, but end of the day, you always feel much better if the numbers are in positive despite all the reasoning that you have to give for this. Happy to say that this year and this quarter, throughout the year, we've been doing reasonably well. We've seen the volumes gone up. We've seen the revenue going up, and we've seen the operational EBITDA has gone up substantially on a consolidated basis by about 18% this year as compared to FY 2024, which is very heartening. Also, we have a much lesser exceptional loss this year of about INR 177 crore only in Egypt and Nigeria. Actually, we had a much higher number in the first two quarters, but the next two quarters, there has been some improvement. For the year as a whole, the number now stands at about INR 177 crore versus INR 871 crore what we had in FY 2024. Consequently, we have a PAT positive at about INR 142 crore versus the loss of INR 690 crore which we had in FY 2024. Notable is that the packaging films volume is up this year as a whole by a little over 10%, 10.4%. Sales of the packaging films are up 10.3%. The packaging films margins also improved in this year. Overall, the reason for a better performance in this, both on the revenue side as well as on the profitability side, is more contribution coming from packaging films business, especially India, especially Hungary. We had a huge turnaround in Nigeria. All these factors have contributed to a higher profitability in FY 2025. I always have to cover the aseptic packaging because that's been a shining star for a few years now and will remain so in the future. Even in this year, we have done about 7.87 billion packs in the capacity of 7 billion packs, which is about more than 110% capacity utilization level. As we commission our 12 billion packs capacity, which is now in the final stages, I think we look for a much better performance from this as this business sort of will not have capacity bottlenecks to expand its horizons. Also, I think for FY 2026, we will have a much better expectation of all these businesses as we've seen that better traction in volume for all the businesses put together. Obviously, some of the themes which have come to commissioning in the last couple of one month or so for FY 2025, we'll definitely see a full year performance of that, plus some of the projects which are going to get commissioned in FY 2026, especially our Mexico project where we're going to make the WPP bags for the pet food industry, our aseptic packaging business in Egypt, which we had announced to the markets, and our recycling facility at Noida, given that recycling commitments have to be fulfilled by all the brand owners from 1st of April. We're going to commission that project later this year, and the benefits will start sort of rolling in. Overall, as I said, on a consolidated revenue increase of 0.4% to over INR 15,000 crore with the packaging films leading the pack with the sales and volume growth of about 10.4%. This is the first time we have achieved over 500,000 tons production and sales volume in our packaging films business. As we ramp up the capacity utilization in some of the plants where we have still headroom, typically we can do better in Nigeria. We can do better in Poland, which has been seeing exports, imports especially from India. That is where there is some pressure on the local production, given that the European costs are much higher as compared to the cheaper imports from Southeast Asia or from India. Yes, there are a couple of things which we can do better in the current financial year. We had 72% capacity utilization in our pet chip facility, which was the first year for our Panipat plant. Obviously, we have a headroom there to go up as well. All these, I think, optimizations and improvement in efficiency, we will surely take it up in FY 2026. FY 2026 also will see a commissioning of some of the new initiatives which we had announced earlier. FY 2027 onwards, we will look at top line as well as the profitability growth. Coming to the debt side, this year we had a gross debt of about INR 8,100 crore and a net debt of about INR 6,800 crore. This includes long-term as well as the working capital debt. We have next year repayment of about INR 1,175 crore for the long-term portion of the debt. Working capitals are more rotational in nature. As the business ramps up, obviously, you need more working capital. We will be looking to repay INR 1,175 crore in FY 2026 of our long-term debt. Yes, we add on some further debt also because of the ongoing projects, the three projects of the WPP bags, the recycling at Noida, and the aseptic expansion at Egypt. I think the overall sense is that FY 2026 looks to be more promising overall in all the business themes as we will have the benefit of our own pet chips availability even for our international operations from our Egypt facility, higher capacity available in the aseptic packaging India business. Obviously, there is headroom to do better utilization of your capacities in certain countries, which I just explained. Yes, overhang remains that in India, the BOPP capacity expansions industry-wide is coming into play starting from June onwards. We'll have to closely watch as to how that will impact the industry players' behavior in terms of the pricing and the margin. That's the overall nutshell from me. I'll also say that for the year as a whole, for this quarter, we spent about INR 668 crore on the CapEx, and the large one was our aseptic packaging and WPP projects. For the year as a whole, we did about INR 1,700-odd crore of—I'll give you the exact number. I think it is INR 1,726 crore is what we spent. 1,726. 1,726 crores is what we spent for the whole year on our various CapEx plans. Next year also, we are looking to spend close to about INR 1,200 crores on our ongoing expansion projects. Even if that is maxed largely from the new debt taken, the old debt, which has to be retired next year, is going to be, again, as I said, INR 1,175 crores. We are looking to we will definitely add some more debt as the working capital requirement for the expanded business will still have to be met out. On a CapEx debt versus the repayments, they will more or less even out for the FY 2026 period. Only working capital additional requirement for the existing businesses as well as for the new businesses that get implemented and that get scaled up will have to be taken from the bank. Having said that, we also, as a strategy, we're sitting on a cash also, substantial cash also. As of 31st of March, against a gross debt of about INR 8,100 crore, we're having a cash of about INR 1,273 crore, which gives us sort of leverage in terms of planning your cash flows in a much better way and access more as safety for the business that should there be any exigencies because of the market conditions, you know that you have substantial cash to sort of take care of any debt servicing commitments and all that. That is from me, the business highlights for FY 2025 and the outlook for FY 2026. Happy to answer any questions that you may have on FY 2025 numbers or FY 2026 outlook. Thank you, sir. Thank you, sir. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets. Options. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Shasank Agarwal from Cisco. Please go ahead. Sir, I have two questions. First is, sir, your recent investments in recycling have been towards the chemical recycling part. How feasible is that tech? Because there were some reports that the entire process is more expensive. Sir, the second one is, how will the recent monthly crude oil prices affect the business going forward? The first part, you are not very audible, so I'll repeat the question. The first part, what you are saying is we are going in for mechanical recycling vis-à-vis the chemical recycling. Why is that so? Is that your question? No, sir, my question was the chemical recycling that you are going into. Sir, is it feasible or is it more expensive than the virgin chip plant? No, we are not doing the chemical recycling. We are only doing the mechanical recycling. Okay? So mechanical recycling, the recycled material ultimately is going to be a bit more expensive for the buyers. If the government has said that in the rigid packaging, you have to use 30% recycled content. This will settle over a period of time. In the short run, there will be sort of demand-supply challenges. Nevertheless, on an overall basis, to begin with, the prices on the recycled products will be higher. As the capacity settles, I think they will settle. On the whole, even after everything that does settle and the normalcy comes, still it will be expensive as compared to Virgin. What was your second question? Sir, my second question was regarding the recent slump in the crude oil prices. What is your question? That recent slump in the. Sir, will there be any inventory losses or revenue losses? I don't really think so that there will be large adjustments on account of that because all your businesses are able to sort of move on with that. Your packaging films business is adjust that on a real-time or on a one-month lag basis. Your packaging business gains when the raw material prices go down. If the crude prices go down, it will be an inter-adjustment between the packaging films and the packaging. Overall company basis, there will be no big deviations in terms of the financial numbers. Sir, one more small question. Sir, going forward, what is your view on reducing the company debt? I think we said that the only way to reduce the company debt is the amortizations that we have to pay. As I said, next year we have about INR 1,175 crore to pay. If there are no further extensions happening, every year for the next couple of years, we're going to pay this much of a repay, this much of a debt. Once this investment cycle stops, obviously, there will be a reduction of debt. Other than the normal amortizations, what we have with our lenders, there is no other way that we are looking at from raising any equity or by doing anything else. We are not looking at reducing the debt at present. Okay. Thank you. Thank you. Thank you. The next question comes from the line of Chirag Singhal from First Water Fund. Please go ahead. Yeah. Am I audible? Yeah. Yeah. So my question is on Asepto. The debottling, I think you have mentioned that it's expected to commission in Q1. Is it already commissioned? Not yet. I think soon it will get commissioned. It will be more towards, let's say, the month of June? I literally can't give you a precise answer on this. When I spoke to my business team on this, they said that we're very close to achieving that. Okay. Could you help me with the overall guidance for aseptic volumes for this financial year? Septic, I said that we produce 7.87 billion or 7.89 billion bags in this year in FY 2026. Yeah. Yeah. No, I was asking for the guidance for the FY 2026. Guidance would be any for FY 2026 would be in the range of 10 billion -10.5 billion bags. Okay. Just one more question on aseptic. Recently, there are many other players who have set up capacity. SIG recently commissioned the plant. I think sometime back, GLS, Elopak set up a plant. Do you see any challenges due to this increased supply? If you can also provide the industry-level data, I just want to understand what is the total aseptic capacity in India, how much of it is exports? Since SIG and all were importing earlier, what was the total imports in India? I can give you the overall industry number, which is about 36 billion bags annual, of which we will have 12. Sixteen is your Tetra Pak, and the rest 8 is other players. Four and four, I'm told, SIG. I think industry, as is the consumption, as we said, is going at high teens. Overall, we do not see any challenges. SIG, in any case, I'm told, is a different technology than a Tetra. It will take time for that acceptance and all that. Not that I'm sort of underestimating their capability because they are a global player as well. As of now, I can only share this industry landscape and our expectations for performance of this business in FY 2026. You are saying that total capacity is 36 billion bags. What about the production, exports, and imports at the industry level? Don't have numbers right now for them, so. Okay. No problem. That would be it from my end. Thank you. Thank you. Thank you. The next question comes from the line of Aman Sonthalia from AK Securities. Please go ahead. Good evening, sir. Sir, we are setting up a very large plant in Egypt. Are you sure that we will be able to sell the entire quantity in the next two years? Sonthalia, this question, you would have asked us also when we were going to set up the first plant in India way back in 2019, no? Yes. As you do, you will have, and at that time, Tetra Pak was a clear leader in this market. We've seen historically that there are certain products in which a second line or second supplier could never develop, like for Amul Butter, if you see. I think probably the questions that we had to ourselves when we were looking at setting up as competitors to Tetra Pak were more pertinent in the year 2019 when we set up the first plant. I think now we are for sure that it is going to be a success story. It might take a bit of time to ramp up the capacity utilization level the way it happened in India also. Once it grew, you yourself have seen that for the last three years now, we are struggling for having capacity available. Because when we didn't have enough capacity utilization, given that the acceptance was taking time and then the COVID came in, we also developed the export market for our product. Today, we do export about 35% of the output of this plant out of India. With the result that I've been saying that we are not able to give add-on more customers in India because of our capacity constraint. Once that happens, the overseas part of the business can be taken over by the Egypt plant. This plant can do more of domestic supplies and all that, for which there is, as I said, that high-teen market growth is there. I think, as I said, this question was more pertinent when we were setting up our first plant. Today, we are 100% sure that our Egypt plant will be able to sort of ramp it up faster. We had told you that Egypt itself consumes about 5 billion bags a year, and Egypt imports today 100% of this aseptic packaging. That itself gives you a reasonable base to start with. You have Africa, you have Europe. Egypt to Europe, you have advantage in terms of near duty as well. In a couple of years' time, we'll come to you that we are looking to expand the capacity. That's great. Sir, this April, I think EPR has got implemented. Are we seeing something on the ground also, or it's just that government has announced and it's got implemented on the papers? I don't think there is something happening on the ground. People are trying to get hold of as to how do they comply with these norms and all that. I think this just started from 1st of April. As I said, even our capacity in Sector 155, maybe going to spend INR 317 crore, is going to come up only in the best case possible by the end of this year. Not that I know of that many others are also not ready. Everybody is getting ready with the sense that government is serious and they're going to implement in true spirit. That is why the capacity is being added. Sir, there is a huge volatility in the price of BOPET and BOPP in the domestic market. Is it the same in the overseas market also, or is it just confined to India? How is the price there and how is the energy price cost of production there in the overseas market? Obviously, the market we are in, especially the Hungary and the Poland market, there the energy costs are higher. Egypt's energy costs are moderate. India is in between moderate and high. That is not the point. The point is, in any which way, whatever you will produce in India will cost less than the cost of production you will have at the European plant, given the manpower, given the compliances, given the energy prices in the whole of Europe and all that. Today, it makes extreme sense for everybody, for the European consumers, to import from India at a cheaper price or from Southeast Asia at a cheaper price. That is what is happening. That is where you see our Poland plant capacity utilization. It has increased in this quarter versus the Q3 from 60% to 70%. The Poland plant, we never operated at 70%. When we set up the new capacity, the old capacity for years together operated always at above 100% capacity utilization. Now, for the total capacity, we're doing about 70% over there. We are only trying to see that how do we take it back to their 100% or beyond 100% level. U.S. plants, if you are updating, for many years now, we are operating at above 100% capacity utilization level. Somehow, there is not much import threat in America. Import threat in Europe after the India capacity overhang has been affecting us at our Poland facility. Hungary BOPP, because in India, there is no mismatch. BOPP at Hungary and Egypt, we have BOPP outside of India only at these two facilities, is operating at 100% level. Since a few of the new capacities are coming in India for BOPP, do you think that it will also affect Hungary and Egypt in the near future also? It might. But the capacity addition on the BOPP side is still more manageable than the capacity addition what happened in 2023 on the tech side. So hopefully, and then there are large players in this, Cosmo, Max, Jindal. So hopefully, we should not see the kind of madness what happened at the time of the PET. But again, only time will tell as to how the competition stacks up in this category. Now that in the next two to three months or so, we're going to see at least 20,000 tons of capacity being added in a market, in an Indian market, which consumes about 84,000-90,000 tons a month. That means, sir, we are not very sure about the future of this film business. Apart from film, other businesses are looking very good. I mean, film business, we are not saying that we are sure of future. We are sure of future of this business. In any commodity business, you see there are cycles when the capacity gets bunched together. That is the time you see the capacity utilization across the industry moving down. It stabilizes. Once it starts reaching 80% industry-wise, people again start to plan new investments. That is where you get into that cycle, which is about a 7-10 year kind of a cycle that happens across the industry. We saw in 2016, there was a mayhem in terms of the demand supply. That stabilized by the time COVID came. The industry was already operating at a very high capacity utilization level. COVID gave it slip because of the demand supply because of the supply chain disruptions. Everybody made a super normal profit in 2021 and 2022. Thereafter, a lot of capacity came, especially in India, both on the PET side as well as on the BOPP side. We have also seen a lot of new players who have set up the capacity. They were small consumers. They were into sort of value-added packaging and all that. They were also looking at the numbers which were there, the prices of the films which were there at that point in time. They also got eluded that there are huge margins. Obviously, when all the capacity came together, the margins fell to what we see in 2024. In 2025, as I said, we have seen a ramp up of the volumes also. We see the price going up also. When such a large capacity gets added, let's also see it from that point of view that the Indian manufacturers started exporting in a big way to Europe. The domestic prices became better by virtue of their exports because the local markets could not have absorbed that capacity, and the local pricing would have resulted in very low margins. Because of that export happening, a sort of balance happened in the domestic market. The overseas prices are still better as compared to India. I think as the capacity utilization across the industry goes up, in India, there is more than 10% volume growth every year. It will get adjusted soon. One last question, sir. What is the update on Hungary high-barrier film, value-added film? That's separately, Sonthalia. Okay, sir. That's from my side. Thank you. Thank you. The next question comes from the line of Mehul Savla from RW Equity. Please go ahead. Hello. So just wanted to check back on this flexible packaging. There was this whole trend of moving to monopolymers from a sustainability point of view. But now this government has talked about having a certain portion of recycled components. So will both grow together, or is it that with this recycling part, monopolymers will not be very the way to go for companies who are looking for packaging solutions? I think mechanical recycling is proven, is a sure shot way to tackle this plastic waste and all that. Once it becomes successful, this is what will get followed in other jurisdictions as well. Let's wait for a couple of years for it to succeed before we have an answer. Monomers also, if you use, so what do you do with that? You'll again have to recycle that as well. That may be a different recycling, more of a chemical recycling and less of mechanical recycling. The polypropylene, you will take it back to the refinery. You will make oil with that and all that stuff. Mechanical is more cleaner, and you know that you can use the old PET bottles to make the raw material for your polyester packaging films. You can use that for your rigid packaging bottles as well. It looks like that mechanical is the answer as of now. Let's wait for the next couple of years before we have more definitive answers on this. Is there any sector thing, like for food purposes we can use one but not for non-food grade, the recycled part is okay, or it does not matter? Even for food grade, you can use part of the recycled, the mechanically recycled PET? All this recycled material that we are talking about is all can be, you can pack food even using the recycled packaging. Our packaging is already approved by the U.S. FDA. Everybody else will also get those accreditations. No issues on that. Okay, sir. Thank you, sir. Thank you. The next question comes from the line of Siddhant Chhabra from Minerva Asset Advisors. Please go ahead. Yeah. Hi. Thanks for the opportunity. Now when you were discussing the overhang, particularly the BOPP expansion coming in this year, we know directionally what kind of effect it's going to be. There's going to be pricing pressure and margin pressure. Can you give any early idea that you would have what the quantum of it can be? Will it be a 5%-10% kind of pricing correction, or are you expecting more severe? For BOPP, actually, we have more presence in PET and less in BOPP. Our overall BOPP is only about 20% of our total packaging film business. We do not see that that will, yes, it might get impacted. I am not saying that it may not get impacted. How much time and duration and the expectation, I think we will have to sort of, we will have to go by the actual experience as and when this happens. Like, if I tell you our total capacity, which is, so we do about 400,000 tons of BOPET and 150,000 tons of BOPP for us. Okay. Right. Within the specialty segment or the value-added film segment, do you think that segment will be protected more or less, or will there be an adverse effect there as well? I think you can reasonably expect that the value-addition added products will get a bit of an insulation from this overhang in the capacity, for sure. Okay. All right. Yeah. That's also my side. Thank you. Thank you. The next question comes from the line of Kaushik Poddar from KB Capital Markets. Please go ahead. Yeah. Can you give us a sense of debt to EBITDA over the next two, three years? I mean, you ended at around 3.6 last year. How do you foresee that ratio? At 3.6. Depends on how the EBITDA also behaves. I think next we can look at is about 3.9 odd or so. That's for this year? For FY 2026 and/or FY 2027 middle, somewhere. Includes the working capital that we have to also have for this. Because as I told you that of the announced project, I think we need to add on debt of about INR 1,200 odd crores. And the same amount is what we have to repay in FY 2026. The debt that will get added will only be the working capital debt that will get added. If our EBITDA for the next year improves by 10%, we will be looking at about INR 2,100 odd crores of EBITDA next year. So 21 into 3.6 will take our debt level to about INR 7,550 from INR 6,850, which is sort of which takes care of my new working capital as well. If EBITDA is INR 1,900 only, then 3.6 would mean the current level. The working capital will have to be the next one. Can you give us a sense of EBITDA for the next for this current financial year? We expect that FY 2026, we will have a 10% revenue growth. A 10% revenue growth over currently INR 15,000 crore will give us about INR 16,700 crore. A 12.5%-13% margin on this should give you INR 2,100 crore of EBITDA. Okay. Okay. On the film side, you are okay with the BOPET scenario. BOPP, you said there is some concern. For the BOPET, you do not see much of a concern, right? BOPET, we want better because as I told you, that some of our facilities in Poland are at a lower utilization level given that there is a lot of export happening from India. I think we would love to see our plant back in full action. Hopefully, next one year as the India demand-supply gap narrows, we will have a better situation in our European jurisdictions. Okay. See, FY 2026, you are thinking of a 1 0% top line growth. Can we expect a similar growth in 20 FY 27 also with all your plants in operation? I guess all your expansions will be in operation by the end of FY 2026. Is it right? I do not have a number right now to give you for FY 2027. Surely with WPP, with the recycling, and with Asepto, Egypt getting commissioned, there will obviously, definitely be some revenue accretion to this and all that. What happens is sometimes when you actually start a project, because it takes time to stabilize for some of the initial couple of years, you may not make that much of a profit that you are actually looking for. It takes time for things to settle. I do not have sort of a clear-cut visibility for FY 2027. Yes, theoretical visibility will be there that if you add this much of a top line with this much of an EBITDA margin, you will have that. I think let us give us a couple of more quarters before we can guide you on FY 2027 as to what we are looking at. By that time, we'll also be sure as to how the development and the construction of our project is coming, is happening in FY 2027. Are you thinking of any other projects? I mean, this time, every time we see a newer project every financial year. For the moment, till the time that your debt equity improves, can we project that there is no more project really coming, or how is it? I don't make that decision. The board and the management, the family has to take that decision. If there are opportunities, surely they'll be keen to expand their—but as I said that, if we are—let's say we go to INR 2,300 crore of EBITDA in FY 2026 itself, obviously you're much more in a different frame of mind than you will be at an EBITDA of INR 2,000 crore in terms of looking at as to what next. Growth has quite has been our style of the way we've been performing. Yes, we have added capacity over the last four, five years, but we have performed also. We do expect that there were tampering glitch in the margin profiles because of the overcapacities, etc., and all that. I think we are a very large player in this business, and we have to look at protecting our market share, our markets, and all that. If there are opportunities which make sense in the future as well, there will be expansion. Yes, we'll remain very, very aware about our debt levels and all that. 3.6 current level and all that should be overall guidance that this is we can look at this as a future reference point for our debt level. Okay. Thanks a lot. Thank you. The next question comes from the line of Raghav from Aequitas Investments. Please go ahead. Good evening, sir. Sir, I have three questions. The first one being, what are the new capacity expansions that you have planned for BOPP and BOPET? We don't have any capacity addition planned for BOPET and BOPP. Sir, is there any new capacity planned in the industry perspective in general? Industry in India, on the BOPP side, I told you that there is going to be about 20,000 tons of capacity getting added in the next three or four months. On the PET side, I think there is only one line which was announced, which is expected to get commissioned. I do not have the timing for that. On the PET line, now recently, General Poly has announced a few days back, they have announced a BOPP line, a CPP line, and a PET line in India. Perfect, sir. Sir, and if I could get a candidate's idea about the margin profile of the company, vis-à-vis the industry? I think we work in various segments of the business: packaging films, packaging, holographic, assembly. Sir, I'd be wanting more towards the BOPP and the BOPET part. BUOPP and BOPET part would be about 10% currently. Okay. For the industry, it will be in the similar ranges or a bit higher? In the ranges, depending on the value added, it could be 1% plus or minus. But largely in that range only. Perfect. Sir, my last question will be regarding the current spreads of BOPP and BOPET. If you could give some light on that. Sorry? On? On the current spreads of BOPP and BOPET. I think important EBITDA margin, what I told you across the BOPP and the PET, overall 10%-10.5%, 10%-11% range is what the industry as a whole is getting. We are not only in India; we are also in the overseas territories as well. Nigeria's profile will be different. India would be different. U.S.A. would be different. Europe would be different. I think we have to talk a blended average only as of now. Sir, the blended average for this year will be 10-11, and for guidance, will also be in the same range, or will it improve something? Guidance could be given that BOPP may see some competition. The PET may improve a bit. It will be give and take between BOPP as well as the PET. Overall guidance for this year on the PET industry margins, on the packaging film industry margins, I think let's look at 10%-11%. Sure. Sure. Thank you so much, sir. Thank you. Thank you. The next question comes from the line of Saket Kapoor from Kapoor Company. Please go ahead. Yeah. [Foreign language], firstly, sir, if you could give us some color on our film business in terms of you have been alluding to the fact that there will be capacity addition for BOPP going ahead, and BOPET has performed better. If you could just give us some more color how the spreads have been for Q4. When we look at the Q1, Q2 numbers, December to March, we have seen lower profitability. What factors have, how has the margin for the film business shaped? Some more color on the same, sir. I think that much of what we saw in the Q3 versus Q4, that much of variability is always there on a quarter-to-quarter basis. We saw that in the packaging films, there were some corrections which happened in Q4 over Q3. That is the reason the margin profile is the profitability in Q4 is lower than Q3. At the year-end, you also have a lot of things which you need to provide for and all that. I am not sort of getting onto that because if there is a loss in the packaging business, there will be a better margin in the packaging business because the packaging business will always perform better when the packaging film prices go down and vice versa because they work with a they have orders in hand, and then they buy their raw material at a lower cost and all that. It gives them that benefit. Overall, between Q3 and Q4, we did not see much of a differential product category-wise. We only saw that packaging film prices in the market became a bit soft in Q4 as compared to Q3. Like that. Can you provide us with the spreads for the BOPET film? How has the spread shaped up for the quarter? No. We'll have to get back to you on that offline only. Okay. Sir, I also would like to congratulate the board for an INR 3.30% dividend payout. Thank you for looking into the aspect of it. Now, sir, coming to the key concern on the valuation metrics, which you already mentioned that we are not looking for any raising of equity. Earlier, I think the investors were provided with the input that there might be some lifting of some foreign subsidy or some value creation exercise may be carried out. If you could just provide us with some kind of where are we in terms of that part of our subsidy lifting or value unlocking, if any, that we are looking. The second question was about the value-added contributions. How are you seeing this percentage moving up for the current financial year vis-à-vis the percentage which we have talked for the current? If you could just give the comparative number of what kind of growth we are looking at, these two factors. First, our plans for our lifting of our overseas subsidy, I'm not saying that we will be not prepared for that. Yes, we are prepared for that. As of now, there is not much opportunity in that space. That is why I said that in the near term, I don't see any equity raising to reduce the debt or anything else. Having said that, we had initiated that. We had worked upon a lot on that, and then the markets tanked and all that. That exuberance which was there in markets at that point in time, we don't still find that they are back, and we can look at equity raising in the near term. When I said that, that was only meaning in the near term. If there is an opportunity after two years, we'll surely look at raising equity at a new Dubai holding level. Secondly, your second question is not very clear to me, but what I get from you is. I will repeat that. No, sir. I will repeat it. It is the value-added contribution, value-added product contribution to the overall revenue mix. How will the value-added contribution be in terms of the%? Value-added. I think that second value-added product is in the film segment also, and again, the expecting also going ahead. How will this shape up? All the questions related earlier also, there were questions relating to the value addition and all that, value-added products. I think we will take all of them offline, and our teams will get back to you. Sir, sir, do we have ESOPs in our organization, or that is not mandated? We don't have ESOPs. Okay. And sir, fortunately, as you mentioned that it will be the call for the promoters, whether they will go for further expansion or how they are going to lower the debt, that will be the exercise done by that. Although, sir, you are a professional representing the company, and we are getting the right answer and the right guidance from you, we would request the promoter or the promoter family member to also join and address the investor queries in terms of these factors that are not allowing us to understand how this value creation exercise or whether value could be created out of our assets because market is not valuing us correctly, and there are good reasons for the same. We would request your good sense to also provide the input to the promoters and managing directors, so that if he is addressing the investors or listening to us and giving us the right viewpoint, that would suffice a lot of queries going ahead because the promoter's stake is also, I think, below 50%. We could ask the promoter or a promoter family member why they are not opting for creeping acquisitions when there is so much value available. These questions are left unanswered since there are no presentation and only no participation from the promoter category. Asia would be the only platform for us. This is a request from my side, sir, if that could be conveyed to the promoter family. That's all, sir. Thank you. Thank you. Thank you. The next question comes from the line of Aman Sonthalia from AK Securities. Please go ahead. Sir, any reason for the dip in chemical business? Chemical to keep the business. Chemical is not dipped. Chemical has performed better. Chemical business profitability, we do not share those numbers separately for you, but I can tell you that chemical business profitability has been better in FY 2025 over FY24. Sir, [Foreign language] do we foresee [Foreign language] we are secured of our profit, that will do much better compared to this commodity business into 2025 and 2026? Even commodity business will do better as we are we will see the ramp-up in the overall capacity utilization industry-wide. We've seen in the past that even the business on the packaging film has delivered about 14%-15%. I'm not counting on the COVID years, but without the COVID years also, the packaging film business has contributed 14%-15% kind of EBITDA margins. I'm sure that we'll have those days again in the next couple of years' time. We and today also, let's accept the fact that that business is a substantial part of our business. Today, how much we've shown you how much of our business is packaging film, which is 62%. 8 minutes. Hold [Foreign language]. 77% of the business is the packaging film business, 77.7%. Sir, but I think the profit is, I think, not 77%. I think it is less than 77%. And my question, non-film business की profitability [Foreign language]? Non-film business [Foreign language] profitability definitely better [Foreign language]. There's no doubt. Better [Foreign language]. Holographic [Foreign language] better [Foreign language]. Engineering [Foreign language] better [Foreign language]. [Foreign language] better [Foreign language]. Packaging films [Foreign language], what I'm trying to say is 2024 was a very bad year for the industry. 2025 has shown a lot of improvement in the packaging film business. 2026 will be better also. Okay. Sir, one last question. Mexico business [Foreign language] plant [Foreign language], how much turnover we can expect from that business at full capacity? What will be the margin in that business? Which business are you talking about? That's packaging business as you said, food packaging business. Pet food packaging business [Foreign language], we are looking at about 22%-24% EBITDA margin. Turnover sir? Correct sir. [Foreign language] packaging films is 62.3%. Sir, [Foreign language] PET films [Foreign language] plant [Foreign language] turnover [Foreign language] expect [Foreign language] full capacity [Foreign language]? Mexico [Foreign language] plant [Foreign language]? [Foreign language] turnover [Foreign language] full capacity [Foreign language] $50 million. $50 million. That means around INR 450 crore. Yes, sir. Sir, [Foreign language] next year [Foreign language] second half [Foreign language] next year, [Foreign language] capacity [Foreign language] in recycling business in Mexico, in Egypt, and in India, [Foreign language] utilization level ramp-up [Foreign language]? [Foreign language], I think in FY 2026, [Foreign language] recycling [Foreign language], recycling [Foreign language] investment [Foreign language] India [Foreign language], Noida [Foreign language] INR 317 crore [Foreign language] investment [Foreign language] plants [Foreign language], showcase, more of a showcase. But definitely we expect that [Foreign language] old PET bottles [Foreign language] film [Foreign language] film [Foreign language] demand [Foreign language] । I think in 2026, definitely we are looking at [Foreign language] all our initiatives on the recycling, on the sustainability initiatives will do sort of much better, including the new investment what we are proposing in Noida. Sir, last question [Foreign language] India [Foreign language] 1.2 billion pack [Foreign language] capacity [Foreign language], 12 billion pack [Foreign language] aseptic [Foreign language] litter [Foreign language] requirements आ [Foreign language] other factors [Foreign language], do you think that we will need further capacity in future in the aseptic business in India also? [Foreign language] I don't see [Foreign language] India [Foreign language] capacity [Foreign language] because Egypt [Foreign language] plant [Foreign language] 12 billion [Foreign language] export [Foreign language] India [Foreign language] capacity [Foreign language] spare [Foreign language] for domestic market. You can play with me in that room. Okay, sir. 12 billion [Foreign language] Egypt capacity [Foreign language] first year [Foreign language] complete. Right, sir. [Foreign language] adjustment [Foreign language] Egypt [Foreign language] export [Foreign language] shift [Foreign language] domestic capacity [Foreign language], domestic volume [Foreign language] shift, [Foreign language] headroom [Foreign language]. Okay, sir. Thanks, sir. Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to the management for the closing remarks. Thank you, ladies and gentlemen. We appreciate your time, questions, and continued support. The transcript of this call will be made available shortly on our website at www.uflexlimited.com. We value this platform as key opportunities to connect with our investors, stakeholders, and we look forward to sharing further updates with you in the next quarter. Until then, stay safe and have a wonderful day. Thank you. Thank you, sir. Ladies and gentlemen, on behalf of Dolat Capital Market Private Limited, that concludes this conference. 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