Ladies and gentlemen, good day and welcome to the Huhtamaki India Limited Q1 CY 2026 earnings conference call hosted by ICICI Securities 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 touchtone phone. I now hand the conference over to Mr. Mohit Mishra from ICICI Securities Limited. Thank you, and over to you, Mohit. Thank you so much. Good afternoon, everyone. Thank you for joining on Huhtamaki India Limited Q1 CY 2026 results conference call. We have Huhtamaki India management on this call represented by Mr. Kamal Taneja, Managing Director, and Mr. Amit Gupta, CFO. I would now like to invite Kamal, sir, to initiate with opening remarks, post which we will have a Q&A session. Thank you, and over to you, sir. Thank you, Mohit, and thank you, Rutuja. Welcome, everyone. Thank you for joining the call today. I hope you had time to go through the financials yesterday. I'll, along with, Amit, give you some flavor of, you know, how management is doing different things. Before actually I get into the call itself, couple of disclaimer statements, which I think we should talk about. Number one, you know, we may be talking about few things or share some information with you which could be deemed as forward-looking. The intention is to share with you as openly as possible our strategy and initiatives, and they should not be taken as any advice on any investment you need to do in any securities or solicit any investment from you. Once again, thank you for joining us. Before actually I go into the main presentation, let me invite Amit Gupta because he's my new colleague who's recently joined as CFO. Maybe he can introduce himself to you. Yeah. Hello, everyone. Good afternoon, you know, to everyone. I actually joined as the CFO of the company last month, so almost like completing a month in this particular role. I had joined the company, you know, relocating back from Singapore to India. My last assignment was with Procter & Gamble Health Limited in the India Healthcare Vertical as the Regional Finance Lead for Asia, Middle East, and Africa. I started my career primarily in FMCG and healthcare, worked with ITC, then Colgate-Palmolive, Sanofi and Procter & Gamble Health Limited first in India as the CFO and Executive Director on the Board of Procter & Gamble Health Limited before moving to Singapore. I look forward to the engagement, and hopefully, we'll have, you know, some good questions coming our way. Thank you. Thank you, Amit. Very happy to have you in the team. I'm gonna start with the content of the presentation. I hope you had time to go through that, but I'll give you a very high level information on what Amit will actually go more details into the financials. At a very top line, we actually improved slightly on our sales versus quarter last year. When I say slightly, it's about 10 basis points. However, we improved our margin significantly. Now, we've been saying that for last few quarters that our focus has been on the margin improvement because what we are doing in last few quarters is we've been selective in participation in the business that we want to operate in. We are going after higher value business, which is also consistent with our strategy and our strength in terms of, you know, the innovation leader in the industry. We really think that we are on a solid ground now and gives us a lot of momentum for growth in future. So just coming back to the results, we had kind of sales which were stable, but we improved our margins, which were supported by sales mix, like I mentioned earlier, and also operational efficiency. We've been actually doing a lot of work in the last couple of years, you know, in optimization, improving efficiency in the assets we have, you know, bringing a lot of expertise from within India and overseas as well. In this quarter, we had a few one-offs. Firstly, we had higher interest income, but they were also offset by some non-recurring charges which we've disclosed in the market before. There's also a huge charge in Q1 which relates to the depreciation, which is related to prior year and Amit will talk you through that. If I can summarize, net sales up by 10 basis points. EBITDA improved by 25%, 24.8%, quarter on year-on-year, first quarter last year versus this year quarter one. EBIT went up by 4%, but that's also because of the depreciation that I spoke to you about earlier. PBT similarly increased by 2.9%, and we were slightly lower on EPS. All these things we are doing, like I said, we've been consistent in our approach. We are also consistent in our approach on global strategy, which we are very focused on, which is mainly on profitable growth, disciplined capital allocation, and much stronger accountability. With those opening notes, I'm gonna hand over to Amit, who is gonna take you through the financials. Yeah. Thanks, Kamal. Actually, the financials for the quarter actually, you know, relay the strategy that Kamal just laid out. You know, on the top line, when we are looking at the top line construct, we are actually improving by 10 basis points versus last year for the same quarter. That's again, driven by our focus with respect to growth in the selected set of customers and the portfolio choices that we are making with respect to the categories and the customer pool that we are going to service in future. It's consistent with our overall strategy that is reflecting in the top line. As Kamal mentioned, you know, from a standpoint of EBITDA margins, we are growing by 25 percentage points. This is, by the way, not a standalone improvement in one particular quarter, but we are seeing a sequential growth in our profitability. Those of you who would have followed our AGM, you would have seen that our profitability numbers have been consistently going up, which actually demonstrates the effective way our strategies is being played, and that's flowing through our financials. From a EBIT perspective, we have a one-off. There's about INR 88 million charge in this particular quarter, which is pertaining to the prior two years. We had, a lthough this is not material, taking into consideration the materiality thresholds that we had for the last two years, you know, 2024 and 2025, but we chose to reflect it in the current quarter itself because we don't see this particular charge to be breaching our materiality threshold for the current financial year also. Fundamentally, we had this particular charge, which is reflective of the lower depreciation charge in the prior two years, primarily because of the fact that, you know, there has been an error which led to the depreciation calculation on WDV instead of the SLM method which is being done. With this particular charge, we have corrected the books of accounts, both from a P&L and the balance sheet standpoint. All the reflections in the P&L are coming correct, starting from January 2026. Our EBIT margins because of this has actually improved by only 4%. If I exclude the exceptional item of depreciation, it has actually gone up by 27.8%, which is consistent with the growth that we have seen in the EBITDA. However, this particular charge is actually bringing the EBIT margins down to 4%. Our overall profit and loss, you know, for the period, is actually about INR 256 crore, which is almost 2% down versus the same quarter last year. Again, this has the implication with respect to the depreciation charge that I just mentioned. If I have to exclude that particular charge, the profit before the prior year postings is actually going up by almost 23.1%. All in all, if I have to summarize from a financial results standpoint, our strategy in play is reflecting in the numbers with a substantial growth in profitability, excluding the one-time corrections of the prior years that we have taken, and the top line, which is holding good in spite of the competition that we see. Moving on to the trends slide. You know, we actually demonstrated a EBIT improvement, EBIT of about INR 386 crore, again, you know, after taking into consideration the INR 88 million hit. If I look at the sequential trends of our EBIT as a percentage to sales, and I take this exceptional prior period item out of the charge, then we are at 8% EBIT for the quarter, which is in line with the EBIT that we have demonstrated in the quarter for last year, and almost 1.7% or 170 basis point higher versus the quarter one of last year. I'll stop at this and maybe you guys had the chance to look through our annual reports and the financial release, and if you have any questions, happy to address in the later part. Back to you, Kamal. Thank you, Amit. I think just to add on what Amit said, you see, you know, in terms of, you know, our ways of working, we are always declaring results based on ethical solutions, and make sure the integrity is intact and the transparency to the market as well. I think the other thing I want to note is, which Amit alluded to, is in terms of the return on sales or EBIT percent, which was at 8%, which is where we were in good old days. That's coming back to the comment I made earlier, where we said that we think that we are in a pretty solid situation at the moment, and this gives us a lot of positive momentum for growth in future. Actually, there's one more thing which I'm very excited about, which is on sustainability. I want to share a few good stories that we have going, similar to what I mentioned in the last quarter as well. When we look at our climate ambition and sustainability, we look at it from a four-pillar point of view. First pillar for us is people, right? Now, when we talk about people, we invariably talk about safety and wellbeing, right? Actually, I'm happy to report that we had substantial significant improvement in safety incidents. Actually, our total recordable incidents year on year improved by 67%, which is great achievement. Not just in terms of numbers, but behaviorally, I see lot of improvement in our plants, in our offices, where people are taking time, thinking and following the processes, the behavior patterns and the initiatives we have to make sure that we reduce risk to our people. The second pillar is on what we call as climate pillar. This is about, you know, what we do for the environment. I'm also happy to report that we actually engaged in a formal agreement for developing a solar captive electricity project in our Khopoli plant. That's been signed. It's being executed now, and we expect to go live in next few months. In second half, we will start reaping benefits of that as well. The third pillar we call as nature pillar, which is focused on water. Again, Khopoli, Rudrapur, Silvassa, they continue to develop a zero liquid discharge status. We are looking at eliminating waste and liquid waste in other plants as well. The last pillar, which is what we call as product pillar, again, huge progress there. Our focus there is improving the solvent consumption. I'm happy to report also that we have done a lot of work on that. We've installed a lot of equipment. We spent some capital in solvent cooling, for example, and all our plants right now are reducing solvent as we speak, and very excited about that. The other thing we are also doing on the product pillar is that actually we are adopting increasingly more PCR or post-consumer recycled content in our in our products, which is also in line with our objective to meet, you know, long-term sustainability goals and also being ahead of the regulation which we see coming up in India in future. I think in terms of reporting, I think you've seen our calendar. Our next reporting is gonna be end of July. We'll talk to you a bit more on our results in second quarter. That's all I wanted to share. Mohit, if you want to maybe ask people for questions. Shall we begin with the question and answer session? Yes, please. 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 the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue has ended. The first question is from the line of Aaryan Vadaria from Aequitas Investments. Please go ahead. Hi, good afternoon. Thanks for the opportunity. Actually, I just wanted to understand. You know, I have two questions. Number one, I just wanted to understand a bit more on the raw material situation post-war. Do you know what are, what has been the effect on the costs of the raw material? Are we getting any availability? You know, what is the situation on ground? Yep, you had a second question also? Sure. I can ask that too as well. Second, I just wanted to get a better understanding on the demand and, you know, actually post-war, which segments are we seeing demand from and, how is, you know, the cost increase or, the cost situation, affecting the demand? Yeah, sure. This is Kamal. Thank you for the question, Aaryan. I'm gonna start, and Amit, feel free to jump in. Your first question was on the raw material situation. Firstly, the situation is, you know, changing every day, as you can imagine d ue to the political situation there. What we have seen in last, I think it started, end of March. We see prices going up, significantly, then we see kind of a bit of, let's say, tapering, and we are even seeing sometimes the prices are changing again negatively and positively. I think overall we have, probably, low to medium, double-digit, raw material, impact on our products overall. The good news there is firstly there's no issue with availability. Being a large, multinational company, we have resources. We have the procurement power, I guess, to source these materials from different parts of the world. Availability is not an issue. Sometimes there's a delay in shipments because especially if they're coming from overseas. I'm also happy to report that we've been very successful. Actually, our team did an excellent job. Procurement, supply chain, sales team, we did an excellent job where we passed on most of these costs to our customers. In terms of impact to us, probably, we don't feel much impact in terms of margins, et cetera. I think we would know more as we close second quarter because that's where we will see the most impact. I think your second question was on demand. How is the demand growing or reducing because of this? Firstly, you know, as you can imagine, a lot of our customers were in kind of a panic situation, so they came to us and asked for more volume, and then they realized that the volume was not there. It's kind of stabilizing at the moment. We don't see any significant change because of this situation, but we do see a demand growing as usual, like we see in every quarter in the industry. Like, I think you must be following up with other FMCG customers we have when they declare their results. Usually, you know, 5%-7% is the increase every year. Some customers increase more, some customers do less. For example, the large customers that we play in, usually they are less, maybe 2% - 5%. Then you see regional customers, smaller customers who are growing much faster because they are coming from a much smaller base. Anything to add, Amit, on that? No, Kamal. I think you covered it well. Thank you. Hope that answers your question, Aaryan. Sure, yeah. If If I can just squeeze in one more question, please. Just, you know, on, specifically raw material in terms of, you know, packaging films and paper, et cetera. The cost increase, how much percentage cost increase are you seeing in these products, paper and packaging films? Yeah. I wish I could tell you, Aaryan, but, you know, it's kind of confidential because, you know, it's competitive in nature. I would not like to disclose that. I think we do pretty good job, being a global company on getting the best material and availability in the market. Understood, sure. Sure. Yeah. Thank you. All the best. Thank you. Thank you. Thank you. The next question is from the line of Viishnu from ICICI Prudential Mutual Fund. Please go ahead. Yeah, hello. I was reading your annual report. It's mentioned in Indian flexible packaging industry is growing at 10%-12%. If your volumes are declining or it is staying stable, do you mean that you're ceding market share with the players or unorganized players? Look, thank you for asking question, Viishnu. I think, again, this is consistent with what we have been saying. The market, I don't know, it's 10%, 12%. I think it depends on which segment you look at, et cetera. Like I mentioned, there are kind of two different segments that we see in the market. There are large multinationals, for example, Unilever or Mondelez or Nestlé. Then, there are smaller, not so small Indian players, but also smaller Indian players who are operating more into regional markets, smaller markets. They may, you know, increase or grow faster than the others, right? Because like I said, they're coming from a smaller base. Probably if you accumulate all this volume, it looks much bigger than the growth that the multinational customers see. Now, what we've been saying all these, you know, at least for last couple of years, that our focus has been very selective. You know, we are, our, let's say, sweet spot or our strength is innovation, you know, premiumization, sustainability, where unfortunately we only have select customers who are interested in those value propositions. With them, I think we are growing pretty okay. Selectively, if we do not participate in other segments which are not aligned with our value proposition, so sometimes it may seem that we are not growing with them. I think I'm, like I said earlier, I'm pretty happy with where we are today. I feel we are much more stronger now than we were before, which gives us a actually good ticket to grow from. You know, we're doing a lot of good work with our customers on, especially on the sustainability front, and we hope to grow in future in line with market expectation. Yeah. Maybe just to add on to this. You know, when you're looking at the market per se, the definition of the packaging market where you actually included paper also, you refer to paper also, it's not comparable to the segment that we play in. You know, there is no lateral equation that you can draw, from the overall market growth to what is being reflected on our side. Hence, you know, that correlation is a bit inconsistent. I think Kamal covered well the strategy that we are playing on, and the results of that strategy are clearly visible and consistently visible, not only in this quarter, but even in the last year. Okay. The other income has also doubled, versus last year. Can you provide any split for that? What is driving that growth? Yeah. Our other income, in this particular quarter actually includes, you know, an interest, on the income tax, refund, which we have received in this particular quarter plus t here's an increase in the FD interest. These are the two big components which is leading to a higher other income plus w e have FX gain, you know, which is actually, you know, from the exports that we are having. With the, with the rupee actually getting weaker, we are having these gains which are flowing in and reflected in our other income. These are the broad three components which is driving, our other income, forward. Amit, however, we also have several one-offs— Yeah. which actually netted off that. It's not that we are improving our margin just because of that. Yeah. Okay. Understood. Thank you. Thank you. The next question is from the line of Rajakumar Vaidyanathan from RK Invest. Please go ahead. Yeah, good afternoon. Thanks for the opportunity. Kamal, the question is, you know, I think you guys have fixed the margins, which is good to know. Just want to know, when do we see this anemic growth being corrected? How long do you think that will appear? Thank you, Rajakumar. We get asked this question. This is my second quarterly call. I believe, you know that I'm only on the job for the last three months or so. Not even three months yet. Oh, it is three months actually. Sorry. Yeah. It feels like a long time ago. I think it's a very valid question. We get asked that a few times in the past as well. Like I said, I can't disclose the exact numbers. Hopefully you will see that in future. I can tell you our we are laser focused on profitable growth, which is also our corporate strategy. That is the reason we are here. We are forming a very strong team. We are getting closer to customers. We are trying to understand their needs. We are innovating, et cetera, et cetera. Hopefully will be a result in near future. Okay. With this inflation on this raw material happening, do you think that will at least help us in terms of the top line? Because you said the margin will be protected. Oh, absolutely. Because they'll be passed through to the customers. Like I said, you know, there'll be no impact or virtually no impact on our margin because of that. Top line, definitely you would see, just virtue of that. You know, barring any market changes, et cetera, at least that one we would see. We are trying to grow on top of that as well. Okay. Any upside on the rupee depreciation going forward? Fundamentally, you know, the way we are constructed, we have a good representation of the exports in our overall business. The rupee fluctuations actually works both ways. When you look at month to month and quarter to quarter, while from a last year standpoint the rupee is devaluating, but from a quarter on quarter basis, there are a lot of swings happening. We continue to expect both helps and hurts from the FX movements because we have a good chunk of our imports from raw materials, although our net position is still positive on the FX. You know, we cannot comment with respect to the future implication of the FX. Yes, it will be in line with how the market and the rupee behaves versus the global currencies. Okay. Just couple of questions, housekeeping questions for the CFO. First one is, can you quantify what is the amount of interest on the income tax refund that you mentioned? Yeah. It's about INR 6.5 crore that we have received. Okay. Yeah. Okay. Okay. The next question is, you know, there is an Other Expense. There is a jump quarter-on-quarter from INR 95 crore to INR 106 crore. What is causing this movement? Yeah. Fundamentally, I don't think so the jump is substantial. You know, from the baseline of INR 95 crore to this is not a major jump. Looking at it from a short-term perspective of a quarter may not be relevant and we are not looking at, you know, a substantial increase in our operating cost. We are actually, you know, on a percentage to sales, we are actually, you know, coming our expenses are coming down. I would not like to comment on the individual elements contributing to it. What I can tell you is that our expense ratios are in line with what has been in the past, and in fact are decreasing going forward. Our profitability numbers are actually showing the way that we have been able to drive profitability with this flat amount of sales, which is again a reflection of the efficiencies that we have in the operations. Okay. No, the reason why I asked is, Kamal mentioned that there are some one-off non-recurring expenses also in the quarter. That is the reason. Where is that item sitting? Yeah. The one-off non-recurring expenses, as we were talking about were, are basically with respect to some of the provisions, reversals in the base, that we have, as well as the interest, income that was there. We have depreciation of about INR 88 million for the prior two periods that we have, that we have actually charged to the P&L. The biggest item on all of these is the INR 88 million depreciation that has been charged. There is also a property, charge here. Okay. Okay. Yeah. Thank you so much. All the best. Thank you. The next question is from the line of Vipul Shah from Ripple Wave Equity. Please go ahead. Yeah. Hi. Am I audible? Yes, Vipul. Yeah. Thanks for the opportunity. So, Kamal, I had, you know, couple of questions for you. You alluded earlier in the call that, you know, post the war, end of March and now you're seeing sort of, or I would say, double digit, inflation in the raw material cost. Just wanted to understand, you know, how fast or is, you know, the transmission of these RM costs to our customers, because I believe there will be a pass-through arrangement and a lot of companies, a lot of, you know, products there have been force majeure declared. I believe that you said that, you know, there is ample availability, so I assume there will not be any force majeure, at least on, you know, the raw material basket which we have. Is the transmission of, you know, these costs pretty swift, or is there a lag which means that at least for the next quarter or the short term we will be have, you know, facing to absorb these margins? Second, question, you know, I had was that the annual report mentioned that, you know, the INR 100 crore which we were supposed to pay back our parents in February 2026, has been amended to June 2027. I just wanted to understand the reason for this, you know, because it inflates the I understand there is no liquidity risk, but it just inflates the balance sheet. You know, from a ROC perspective, also there is, you know, it brings down that ratio. Yeah. I think we'll let Amit answer you on the INR 100 crore first, then I'll come back to the raw material. Yeah. Hi, you know, thanks for the question. From a standpoint of the loan that, specific loan that you talked about, this is a ECB loan from the parent which is covered by the RBI guidelines on the tenure for the repayment part. We have paid a part of it. A part of it still remains, which has to be paid, you know, over the period of time as prescribed— By June 27. by June 27. You know, this is subject to the subject to the limitation that we have based on the RBI guidelines. I think that's the reason why this is still reflecting. As I mentioned in the AGM, also, you know, from a standpoint of our service cost, with respect to this debt, it is benchmarked to the returns that we are earning from the fixed deposits which are being maintained. There is no kind of negative impact with respect [audio distortion]. Thank you, Amit. Vipul, on your question on the RM cost pass through, you know, how swift we are, et cetera. Firstly, I think your question was, what's the impact? you know, because it has to be, you know, it cannot be instant, right? Once you get the RM increase, we increase our price as well. Because we looked at our inventory, current inventory, old inventory, new inventory, what we need to order, et cetera, et cetera. We take a pragmatic, like a average, almost like a average cost review on what we have, and we went with the price increase accordingly to our customer, yeah. Because there'll always be a mix, right, of inventory which we bought at a lower price and the one which we got at the higher price. Now, we have the fortune of actually seeing how our parent company is doing with the other regions as well. Actually, India was one of the first ones compared to the other regions to implement this price pass-through, and we were very quick. I think it's also because we are so focused on our bottom line, and, you know, as you know, we've been growing that for the last few quarters. We took a very swift action on that. In fact, by end of March, we had almost all our future orders locked in with the new pricing. This pricing is not just one time also, because, you know, the a lot of our customers actually have access to the availability and the pricing situation themselves. We have been very transparent with them, and whenever there's an adjustment, we are also very quick in adjusting our price up or down, depending on, you know, how they are moving. Actually, I would say, in my experience, what I've seen over the years, I think this is the one of the best practices we had in India in terms of the price realization, because the raw material cost increased. Yeah. I mean, it's really fantastic to hear that at least from what I understand, you know, that at least we've been able to protect. Yes. you know, our per KG Realization, you know, if I may. That's heartening. Amit, the other thing, you know, request I had is that, and I also mentioned it, I believe, in the earlier calls also. When the company makes, you know, the presentation, you guys also plug in the other financial income as part of your operational, you know, EBITDA. Whereas most companies, you know, you know, are quite discerning and, you know, at least, you know, as analysts like us also, we review them. We review the other non-operational or financial income separate. I would request if, you know, you guys can consider this aspect when you make the new presentation, you know, in the future. Thank you so much. Yeah. Yeah. Thanks again, for the input, I'm actually looking at the unaudited or the audited results that we have released yesterday. Other income is actually separately called out. You know, is there a specific kind of a disclosure that you're mentioning? No, no. In your presentation today, when you make and you, the operational EBIT and operational EBITDA, that actual number is not, you know. Most analysts would remove the other income part, which is non-operational or financial in nature, which is reflected in the notes, your audited results. That is where I was coming to, yeah. Okay. Yeah, noted on that. Point noted. Thank you. Thanks. Thanks. Thank you. The next question is from the line of Aaryan Vadaria from Aequitas Investments. Please go ahead. Yeah. Thanks for the opportunity again. Actually just, you know, thinking from it in this perspective, would you say that the war, the inflation cost due to the war rather, has been kind of, you know, blessing in disguise for you? Because, you know, you guys would have seen higher prices and it would so margin, you are saying it would not hamper, but obviously you would see higher income, right? In terms of, you know, versus the regular packaging players which we have, you know, what would be your high-level opinion there? Yeah. I think what you are saying is comparatively being a bigger organization, do we have an advantage, right? That's what your question is, right? kind of, yeah. That too, plus, you know, the overall inflation being— Yeah. good for you because it leads to higher revenue. That is it. Yeah. I think Yes. Maybe let There are probably 2 questions there. First of all, let me address the higher revenue because of inflation, right? That is true. You know, when we are passing on higher costs to our customers, obviously our revenue would increase. Again, you know, we like a, you know, we are a company, we are very transparent with our customers. We value their partnership. They value our partnership. Most of the time, actually all the time, we are very transparent with them when we incur increased costs. It's also in our contracts, to tell you the truth. You know, they understand that we are passing on the exact cost or very similar to that. Actually, the revenue goes up, but actually it doesn't make much difference to the margin, right? Because it's just passed through. I think revenue, yes. I get as investors on the call here, you know, that you're looking much more on margin itself. I think that has minimal impact, if anything. Your second comment was, you know, where does it put us compared to other competitors who are smaller, who do not have the reach, for example, in terms of, you know, buying power or having the availability, et cetera. Definitely I would think so. That's the case with us because we have the global resources and the reach where we can source many of these raw materials from alternative sources. Pretty happy about that, actually, the way we handled the overall situation. We have more to go. Who knows where it's gonna end up, but right now I think we are sitting in a good position. Yeah. I would also like to confirm that, you know, war is not good for anybody. From a standpoint of the business, we are not profiteering from the war. We are finally operating a business where we are transparent with respect to the cost increases and the pass-throughs that we do to the customers. This particular piece has no implications from an EPS standpoint. You know, we didn't have war last year. We didn't have the war impact in the quarter one of this year. We have expanded our margins, you know, consistently. Yes. Fundamentally, from a standpoint of the operating discipline and our strategy of expanding the margin, that's reflected irrespective of the war. Top line inflation because of the price correction is not impacting us. No, no. Obviously. What I meant it as in, like, let's say your revenue is INR 100 and you have a 20% margin, then your profit is INR 20. If the revenue only becomes INR 200, then at 20% margin you earn INR 40. That is in I'm not saying because of the war, but in some way inflation is beneficial for you, is what I mean. I think I got my answer. The operations have been, you know, very well managed. Thank you. Thank you. Thank you. The next question is from the line of N. Modi, an individual investor. Please go ahead. Yes, sure. Thank you, sir. Sir, are you having background just I wanted to know that what capacity we have in our plant? Mr. Modi, I think what you meant is the capacity utilization. Yes, sir. Okay, okay. Yeah. I think again, competitive in nature, I can't give you exact number. I think we have a lot of room to grow, if I can say that, yeah. Capacity is not a constraint at the moment. That's what I want to know, sir. Yeah. Thank you. Thank you. Thank you. The next question is from the line of Rajakumar Vaidyanathan from RK Invest. Please go ahead. Yeah. Thanks for the follow-up. Kamal, the question is, are you looking at any inorganic opportunities? Thank you for the question, Rajakumar. I think, it's like, you know, somebody's asking you to run before walking, you know? I think we are trying to strengthen our organization. We are trying to strengthen our operations. I think we are very happy with what we have done so far. Again, the results will show in future. I think at the moment, we think there is enough demand in the market, there's enough opportunity that we can grab in the market, which is aligned to our value proposition. I think the short answer is, not at the moment. You know, if something comes up, we would definitely look at that. Right now it's not in our radar at the moment. Okay. Organically there's a lot of room to grow, yeah. Yeah, yeah. Okay. The second question is, just looking at the shareholding pattern, I don't see much of institutional participation in our company. Just wanted to know, any plans on that? Do you engage with the institutional investors? Because given Huhtamaki is a multinational company, I mean, it's very rare to see MNCs having no institutional participation. Just wanted to get your comments. Yeah. Thanks for the question again. You know, the choices with respect to the investors in a particular company are kind of determined, you know, by the company and, you know, it depends upon the individual, you know, choices that the institutions would like to make. It's not that we don't have any institution investors and, you know, the shareholdings of the institutions across the scrips keep moving. We don't kind of engage with respect to, you know, either— Solicit anything. Yeah, solicit any kind of participation from specific set of investors. I think, I would rest it at this, but you know, it is entirely market-driven. Okay. No, the reason for asking this question is because your stock is poorly valued. I mean, it's almost trading at one times book. That is, unheard of for a multinational company. I mean, you know, if you have institutional interest, then you know, the liquidity in the stock will be more and you'll enjoy a better valuation. The question is coming more from that standpoint. Yeah. Looking at the way our EPS and return on capital ratios are improving, we believe that, you know, the valued investors will look at it differently, but we don't solicit any kind of engagement on that please. Okay. Thank you. Thank you. Participants who wishes to ask a question may press star and one. The next question is from the line of Anil Sharma, an individual investor. Please go ahead. Yes. My question is regarding you have put aside two assets for sale. What are those assets and what are any guidance on? Guidance you have already told argued with. What are those assets and where are at? Sorry, Anil Ji, we didn't get your question. Assets, did you say assets or? You have put aside, assets for sale, huh? Assets for sale. Current assets, other current assets. Yeah. Some part with- Yeah. Land and buildings. Yeah. We have a property in Daman. Daman. Which we have actually put up on sale. You know, we have curtailed our operations there and it's related to that. Okay. Thank you. Thank you, sir. Best wishes. Thank you. Thank you. Ladies and gentlemen, that was the last question for today. I now hand the conference over to management for closing comments. Thank you, Rutuja. Well, first of all, thank you all of you for joining the call today. Appreciate your support, and there were some very good questions asked in this call, and I look forward to, you know, engaging with you along with Amit next time. We hope we answered all your questions satisfactorily. Like I said, thank you very much once again, and we look forward to talking to you again in future after the second quarter. Thank you very much. Thank you. Thank you. Ladies and gentlemen, on behalf of ICICI Securities Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.