Ladies and gentlemen, good day, and welcome to the Ganesha Ecosphere Limited 4Q FY 2024 earnings conference call, hosted by Antique Stock Broking. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference, please signal an operator by pressing star and then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Manish Mahawar from Antique Stock Broking. Thank you, and over to you, sir. Thank you. On behalf of Antique Stock Broking, I would like to welcome all the participants on the 4Q FY 2024 earnings call of Ganesha Ecosphere. Today, we have Mr. Gopal Agarwal, CFO, Mr. Prashant Khandelwal, Senior Vice President, Mr. Yash Sharma, Director, Ganesha Ecopet, from the management. Now, I would like to hand over the call to Mr. Agarwal for opening remark, post which we will open the floor for Q&A. Thank you, and over to you, Mr. Agarwal. Yeah. Thank you, Manish and Antique Stock Broking for hosting us. Good afternoon to all the participants, and on behalf of Ganesha Ecosphere, I thank to all of you for taking the time to join us and extend a warm welcome to Q4 and Q4 FY 2024 earnings con call of Ganesha Ecosphere Limited. I hope everyone got an opportunity to go through our financials and investor presentation already uploaded on the exchange. The quarter gone by has ended at better note, and we achieved good set of numbers on consolidated basis. Though textile sector has not come out completely from woods and demand as well as prices are still under pressure, we are operating at optimal capacity level while maintaining our operating margins above 11% band. Our Warangal unit has also started contributing positive cash flows on the back of ramp-up and capacity utilization. Taking through our operational and financial performance on standalone basis, company achieved production volume of 27,752 metric ton during the quarter, which is slightly lower by 2.4% on quarter-on-quarter basis and 6.4% on year-on-year basis. The drop in production happened in yarn segment, where demand has still not recovered and inventories are piling up. On the back of good demand in RPSF segment, sales volume at 27,558 metric ton registered an improvement over Q3 FY 2024 and Q4 FY 2023. The drop in prices of spun yarn has pulled down overall average realizations at INR 83,190 per ton, which is lower by 3%, with average per ton realization of INR 85,870 achieved during quarter three. Raw material prices remain flat in comparison to last quarter. We earned EBITDA of INR 27.79 crore during Q4 FY 2024, dropped to 11.72% by 101 basis points over Q3 FY 2024. EBITDA margins are 12.73%. In absolute terms, we earned EBITDA of INR 10,012 per ton, as against INR 10,999 during Q3 FY 2024, and INR 11,580 during Q4 FY 2023. The drop in EBITDA margins are due to slide in prices of finished products without corresponding adjustment in input prices. PAT at INR 20.92 crore on the back of lower interest incidence is better than INR 19.55 crore during Q3 FY 2024, and INR 17.14 crore during corresponding last quarter. Financial performance of 12 months on standalone basis has affected in comparison of last year under the shadow of first, first quarter of FY 2024, where profitability had dropped significantly due to reasons discussed earlier. Now, coming to the consolidated performance, there is all round improvement over last quarter. Production as well as sales revenue has improved over last quarter by 6% and 7% respectively, while EBITDA margins at 15.40% have improved by 133.7 basis points. In absolute terms, we achieved revenue of INR 305.53 crore and earned EBITDA of INR 47.06 crore and PAT of INR 21.60 crore during the quarter. Our subsidiary has contributed EBITDA of INR 19.27 crore during the quarter. At Warangal unit, RPSF line as well as second rPET granule line started with effect from March 1, 2024, and both the lines are operating at over 80% capacity utilization during first month of operation. Third line is also expected to be operational by June end. This is from my side. Now, I hand over the call to Mr. Yash to share update on business. Thanks a lot, Gopal. Good afternoon to everyone. I welcome all of you to our company's quarter four and financial year 2024 earnings con call. I will quickly share key business updates before taking all of your queries. The financial year gone by was started in the realm of disappointments, revealing around a downturn in the textile industry, with subdued demand and sliding prices due to various global and domestic macros, which shadowed the performance of our company as well, along with significant drop in our operating margins, as well as profitability during the first quarter. Things were also moving at a slower than expected pace in our new Warangal unit, where we were facing. We were waiting for approvals from many brands to start the commercialization of our products. However, financial year 2024 closed on a positive note with improvement in our company's performance, not only in our legacy business, but also from our new Warangal unit, where operations have improved significantly. We achieved a very good set of numbers from our Warangal plant, where we achieved operating profits of more than 22% during the quarter, on the back of improved capacity utilization of existing rPET plant, as well as the operation of, the start of the operations in the, RPSF production line and the second production line of our rPET granules. Both these lines were started in the beginning of March 2024. Going forward, we are looking for further improvements in our performance during the current quarter and also on full year basis. We shall be witnessing optimum utilization of our existing product lines, as well as contribution from the third line of rPET granules, which is expected to be operational from June 2024 onwards. We are also installing rooftop solar power plant at our Warangal unit to further our vision towards sustainable operations and to save marginal power costs on the other hand. We hope that financial year 2025 is going to be a very remarkable year for the company. On the back of funds raised at the recent QIP, as well as preferential warrants issue, we have set off entire working capital borrowings, as well repaid the term debt of the holding company, achieving almost zero debt status currently in Ganesha Ecosphere Limited. For seizing the opportunities available in the recycling industry, we are working on our expansion plans and which will be shared as and when they are final and, approved by the board. That is all from my side. We would now invite you for any questions that you might have. Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question, press star then one on the touchtone telephone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to please use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Sanjay Ladha, from Bastion Research. Please go ahead. For the opportunity. So my first question would be on CapEx front. Hello, is my voice audible? Yes, yes. Yes, please, go ahead. Yeah. So my first question would be on CapEx front, and so would like to understand how much total CapEx has been planned on, how much has been spent on, and what all the product segment capacity has been live now, and any new capacity still pending to be, you know, to be introduced? Yeah. So, we have spent over about INR 600 crore on our Warangal unit. And almost all the plants have been operational except this rPET granule line, which will be, which is expected to be operational by end of next month. And for future expenses, we are allocating and discussing in-house, and once we are once the project is approved by the board, we will come out with that numbers. Okay. So if I am not wrong, there is almost INR 800 crore of CapEx that has been planned. Out of this, INR 600 crore has been spent on. So there is still pending INR 150 crore, or it is, you know, we have done the CapEx line and all that? No, so for the capacity expansions or the new capacity setup, we have already done, except the 3, the third portion line, which would be operational in next month. And after that, there maybe can maintain CapEx or some CapEx over the top solar installation. But 800 was not the increased number. The actual increased number was around INR 650 crore. Okay. So that is, that is already spent in last two years, I found. Yeah. Okay. So my another question would be on, since we have already shared the blended EBITDA margin would be around 15%-16% after the, you know, the existing capacity and the new capacity has been fully capitalized. But can I get to know that, the new capacity which has been introduced, what is the maximum sales we can do from that plant? Yeah, from our subsidiaries and we stand on consolidated basis, we are looking for sales of about INR 1,700-INR 1,800 crore. When all the plants will be fully operational. Okay. Okay. I've got it. So my second question would be, so we have also shared the rigid plastic capacity of HDPE and PP, you have said in Q2 ConCall, and it is taking time during that time. So what is the current status on the same, and how we are planning on that front? Yeah, so we are slowly moving up in that direction, but we are not very fast. Now our focus is on the rPET granule side. We are not very much aggressive on that front. But of course, we are moving ahead with that, slowly. Any strategic reason we have chosen that? Because I understand B2B are the granule chips, which we are saying has the better margin and has been on the demand. But HDPE and PP, we are not doing in previously. We are doing any specific reason or we have chosen not to pursue further? Yeah, so Prashant will answer it. So basically, hello, hi. So, the reason behind going slow with HDPE, PP, or I should say non-PP segment, is that, the regulation for approval from FSSAI for food safety of HDPE, PP is still pending. The FSSAI and EFSA both are not very much clear. It's still the EFSA, European Food Safety Authority, has also not decided the particular process with which we can obtain the food grade materials. So this is one of the reason behind going slow into this. Because, for non-food grade HDPE, PP recycling, we are having a very vast unorganized sector, which is recycling these materials in India. For corporate organization like us, the food grade is a better sector, where we can expand faster and we can serve the big brands who are using food grade PP and HDPE granules. So, on one side, the regulation is still going very slow, and on the second side, we are also working on the supply chain system. Because a proper traceable supply chain system is still in the emerging stage for HDPE, PP and all other non-PP plastic. So these are the two things which are slowing down the pace for development in this non-PP segment. Understood, sir. Sir, the another would be, we have done a collaboration with 2-3 entities. One which is, you know, Applied DNA for US-based entity. Then there is a Manjushree entity, which is, you know, Coca-Cola based, for B2B granules. So can I understand what is the strategic, you know, benefit we will get out of them? And if you can explain me a little bit more about the strategic collaboration, it could be really helpful. So for Applied DNA Sciences, with U.S. partner, it is traceability system, where you can trace the product by doing a few testing at the consumer end. And it is easily identifiable that whether the recycled fiber or recycled yarn has been used in that garment or whatever the end product, end consumer product. Yeah. So, in this testing, DNA Signature is put into our fiber through this technology, and which can be traced at the consumer end. So basically, it was the demand from the brands. Some few of the brands were asking for this since long. So we have done the trials and now we are ready to launch this. But yes, somebody has to... It has to come from the brands, from the market, that they need this traceability to give, I should say, a confidence to the consumer, that whatever they are claiming for the recycled or green fabric or product, they can give confidence to the customer. They can also demonstrate it. Yes, it can also demonstrate it. Yeah. So now we are ready for this with the technology and waiting for the brands to come out. Sir, any update on Manjushree? Sorry to interrupt. We request you to please rejoin the queue for further questions. Yeah. Thanks a lot. Thank you. The next question comes from the line of Dhruv Bhatia from Bank of India Investment Managers. Please go ahead. Hi, Sir. Thank you for the opportunity. So my first question is, just to understand, you know, your current capacity for rPET granules currently is 28,000 tons? Yes. Yes, Dhruv, it is 28,000 tons at present. Okay. You are saying it's running at 80% utilization? Right. Okay. And, you know, another 14,000 tons of capacity is going to get commissioned in June of 2024? Right. So post that, I mean, you know, as you said that you are still evaluating, so, if we put up a new capacity, what will be the, you know, timeline for, you know, say, if you announce one today, you know, how long will it take for you to commission a new facility? It takes about 15-18 months time to commission the new facility, fully operational. Okay. And the current one, which you're running at 80, I mean, what can be the... I mean, is this peak utilization or is it, can you go a little further up? No, we can go little further. We can go more by more than 90%. Okay. And, Sir, the second thing I wanted to understand is that if I look at the subsidiary numbers, because, you know, it covers Nepal and Warangal, I think these are the two subsidiary entities. You know, going by the EBITDA per ton this quarter or EBITDA per kg, you've done somewhere about INR 30 per kg and, you know, an EBITDA margin of 22%. Whereas, you know, what we, you know, understood earlier was that, this facility, I mean, at least the PET business, the rPET business would be a, you know, 20% margin. And, the other parts of, you know, the business, which is more the, filament, which would be on the lower side. But still, you on a blend basis at, you know, the subsidiary level, you're still doing 22% margin. So how is this, you know, achievable and is it sustainable? Yeah. So, the numbers are quite achievable and, in future also, so we are working, and initially, the regulation is to be started from FY 2025, FY 2026, sorry, FY 2026, from April 2025. So we are in fact, looking for the improvement in margins going ahead. So, I mean, so you're saying that, you know, earlier you used to talk about INR 20 per kg for this business. Now, you know, you're at 30, you're saying there's a scope to even improve this? ... Yeah, because the regulation has not started and all the brands have started our products on trial basis. And also, we are having the good margins from our product, other products. Okay. So, actually, when we are talking, we have not started the actual sale or actual turnover. So that was our expected margins, but now the margins are the actual one. Currently, have you locked in the customer in terms of a long-term contract, or all these currently sales are all on spot basis as and when required? Basically, it's a mix of the two. We have a few customers whom we have locked for year-long contracts, and the multi-year contracts are also already under discussion. There are some sales that we are currently doing on spot basis itself, basis on the demands from domestic as well as the export markets. Okay. And sir, what would be FY 2025 CapEx that you will be spending? Yes, so for FY 2025, we are finalizing the CapEx plan, which will be finalized very soon. So, after finalization of the plan, we will come back with the numbers. Okay. So as of now, there is not a great expenditure, because we have to spend some amount on the solar installation, which is about INR 52 crore, and some maintenance CapEx are there. And the CapEx for the third line is already there. And we have also to make some modifications in the machinery, for improvement of the capacity. So roughly, as of now, we are running the CapEx plan about INR 70 crore-INR 80 crore. Okay, and last- For capacity expansions, we will come out with the plans very soon. Okay. And sir, lastly, just on your legacy business, on your base business, you know, just to understand, because there is still, pressure in this business, we have seen both, realizations, per, you know, ton, as well as the EBITDA per ton, you know, falling off further. You know, even the demand hasn't picked up materially. So where are we in this stage? I mean, when are you looking at recovery in, in your base business, and, how should we think about profitability here? So do you see, our major products is going to the textile sector. Mainly 50%-65%, we are selling to the textile sector. And the textile sector is not in good shape at all, this last one and one year and so. So but now we are looking for the recovery in the textile sector, which will be, which seems to be happening around July to July and August month. But even though we are, we're not doing very bad in our legacy sector, we are still maintaining our margins of over 11%, except the quarter one and two, when the prices dropped off quickly and we suffered. After that, we have come back, and now we are earning more than 11% EBITDA margin, and historically we are on 11% plus band in legacy business. Okay. No, sir, because the reason I ask is that, you know, generally, you know, customer would provide you, you know, or give you an order visibility 3-4 months prior to, you know, when he's seeing what type of offtake he's already seeing, right? So from that point of view, you know, are you seeing next 6 months any improvement in growth visibility versus the last 3 quarters? So, in our legacy business, order book is not of 3 and 4 months, it is hardly 1-2 months only. Okay, okay. Noted, sir. Yeah. So, but we have seen the improvement in the sector from August onwards. Okay. And sir, lastly, on the you know, debt number, because of, you know, obviously you're still work in progress for the CapEx in FY 2025, you know, where can the peak debt be, in your opinion, from where we are currently? So, the debt in our books is around INR 400 crore as of now. And we are already having the cash of about INR 185 crore with us. So we and also all the units have started to contribute towards the cash profits. So we don't see any uptick in the borrowings in near future. But exact numbers we will be able to inform once we have finalized our CapEx plan. Okay, sir. Perfect. Thank you so much, and all the best. Thank you. Thank you. The next question is from the line of Jenish Karia from Antique Stock Broking Limited. Please go ahead. Yes, thank you for the opportunity. So firstly, some bookkeeping questions. If you can just help us with the production and sales volume, product-wise, for FY 2024 and the revenue for the same? Sorry, Jenish, I missed your voice. Can you please repeat? Yeah. So I just wanted FY 2024, product-wise, production volume, sales volume, and revenue numbers. Yeah, so, on our standalone basis, we have made the production of 1.04 lakh tons in PSF segment, and 8,800 tons in yarn segment for the whole year, on standalone basis. Okay, and And, uh- the sales number? Yes, sales number is, in PSS segment, we have made the 104,000 ton sale, and for yarn, we have made 8,600 ton of sale. ... Okay, and, for the subsidiaries, if you can just help with the similar number? Yeah. So, for subsidiary, we have made a production of about 11,500 tons of chips, and 1,000 tons of PSF, and 1,600 tons of filament yarn. 1,500 tons. Yeah. Everything will be sold, or sales volume are different? Yeah, yeah, and the, the sale number is, more or less, of the same. Okay, that's excellent. So, okay, next is on the guidance in terms of revenue and margin for FY 2025 as we see ramp up of the south plant. So where do we see the revenue and the margin for the next year? Yeah. So, we are looking for a sales turnover of over INR 1,500-INR 1,600 crore on a consolidated basis. And margins would be north to 16% on blended this. Okay, that's it. So next is on the inventory days. So our inventory days in FY 2024 was higher because of the slow-moving textile business. But as we see the textile demand improving from second half of FY 2024, do we see the inventory days coming down? And what would be the guidance on the net working capital also? Yeah, of course, so with the improvement in the yarn, textile business, the current working capital cycle is around 91, 92 days, which we are looking for to come to bring back to 80 days on average basis. Okay. So next is on the CapEx. Like, you earlier mentioned, the plans are not yet done, but, even if we finalize the plan in the next couple of months or, by next quarter, there will be no capacity addition in the bottle-to-bottle chips, till, beginning of FY 2027. Is that assumption correct? Yeah. So we are finalizing our expansion plans, and we are very much hopeful to make the expanded capacity operational. Whatever we finalize, the expansion will be operational by end of December 2026, or from December 2026 to March 2027. Okay, that's helpful. So next is on the warrant conversion of the promoter. In- I'm sorry, I'm sorry. I mean, I mean it was December 2026. It was December 2025 to March 2026. Okay. But, sir, you mentioned that the lead time for machinery is from 15-18 months, so the December 2025 and- Yes, yes, yes. So, so, yeah, yeah, so we, if we move, if we move, in next one month or so, so we would be having the machinery delivered to our side by September to December 2025. Okay. Okay. Okay, no problem. That's helpful, sir. Next is on the warrant conversion. So any conversion that will happen in FY2024, or this is with regard to the dilution of equity in FY2024, or the dilution will happen next year itself? Yeah. So the warrant currency is for 18 months, and we have allotted the warrants in January itself. The 18 months period is up to September 2025. So based on our requirement of the funds, we will convert the warrants. In tranches also, we can. But as of now, there is no plan to convert in this financial year. Okay, that's helpful. So lastly, on the plastic waste management rules, how is the on-ground implementation going? What changes do you see with regards to your sourcing or changes or raw materials pricing or competitiveness with regards to sourcing the raw materials? So any color on that front. So as of now, there is much clarity on the ground for the implementation of rules from April 25 onwards. Even the Ministry of Environment has notified the penalties also for default in using this recycling stuff in packaging products. But do you see any increase in the price of raw materials, or any percentage increase that you have observed and you want to quantify anything on that? So we don't see any major change as of now. Okay. Okay. Looking to the availability of the material and the increase in the consumption of PET. Okay. Okay, that's helpful. So lastly, one thing, we, Manjushree has taken 1% stake in our South India subsidiary, right? So there will be, it will be reported as minority interest in the financial statements going forward. That is correct, reporting? Yeah, though we have finalized, we have made the term sheet with them, but it has not been operative as of now. So, the shareholding agreement has not been executed so far. Maybe, we may do it in next quarter also. Okay. Okay, sure. Thank you so much, and all the best. Thank you. Thank you. The next question is from the line of Bhavya Gandhi from Dalal & Broacha. Please go ahead. Yeah, hi. Thank you for the opportunity. So if you can just throw some light on the regulation that was there for FY 2025, that there was with respect to recycling. I mean, the regulation started somewhere in FY 2022, then there was something in 2025, and then 2026 onwards, the 30% that recycled plastic that one has to use. If you can throw some light on that. So basically, the regulation was notified in April-May 2022, which is to be effective from April 2025, and this timeline is intact. So they have made some changes in between regarding the penalties and all those things, but the timeline is intact. No. So there were some. So basically, there are three stages, if I'm not wrong. One was with respect to recollecting the entire plastic, then recycling, and then reusing, right? So if you can throw light on the entire timeline, how this implementation is was going to take place, like FY 2022, EPR became effective, if I'm not wrong. Right. Right, right. Right. So what was that stage one, recollect? So basically- What exactly one has to do? Yes, yes. So basically, you see, all the, all the packaging manufacturers and brand owners who are putting out packaging, you know, products, packaging products out in the market. So the first stage is that they have to ensure that the plastic gets collected and gets recycled. So this is what is called an EPR certificate or Extended Producer Responsibility. So what is happening right now, for example, is that all the brands like Coca-Cola, Pepsi, Bisleri, etc., all of them, whatever plastic they are putting out in the market, they are buying EPR certificates from recyclers. So for example, like, we recycle rigid plastics, so we give out certificates of that, you know, we have recycled rigid plastics of this much quantity on the behalf of so-and-so brand. So that's the first category, which is the first liability, which is that all the brands should ensure and should collect these recycling certificates from the recyclers, that the material is actually being collected and being recycled. Whatever use it is being put to is another question. And then the next stage is basically then that, you know, that they have to ensure that they start using the recyclate itself in their products and applications from 2025 onwards. So the EPR has started long back in 2021-2022 itself. So from that long back itself, we, you know, the recyclers have been selling recycling certificates to these packaging manufacturers. Then the next stage now, which is starting from next year, is to actually use it into a circular economy application. So, I get your point, sir. So in FY 2025, I'm just trying to understand, the recycle process is already started, right? So, stage two, FY 2025, which mentions about recycling. So what exactly is the difference between FY 2025 regulation and 2026 regulation? From 2025, there's no regulation. There's no timeline for the FY 2025. The extra timeline is from the April 2025, that is FY 2026. Okay. So the FY 2025 regulation is that they need to buy 100% of their EPR certificates. So if they are putting out 1,000 tons of plastic, let's say, out in the market, they have to ensure they're also buying certificates equivalent to 1,000 tons. So 100% recycling, they have to ensure, they have to buy the certificates for. And the next year, the FY 2026 commitment, which is starting, is to actually use the recyclate in packaging- Got it. from 30%. Got it. Okay, fair enough. And sir, another question is with respect to revenue from Warangal. So if I subtract the consolidated and standalone figure, it comes to closer to INR 70 odd crores at 86% utilization. And, barring the capacity, I mean, line three, which is going to come up, if I extrapolate, our revenue comes closer to INR 320-INR 340 odd crores, even if we are able to do, you know, sort of, 90% capacity utilization. If you can just help me understand the INR 600 crore revenue figure that we are targeting. Yeah. So you see, our second production line of RPET and the rPSF line has started in March itself. So only one month production is there. And with the third production line is to be operational from next month, so we would be get almost a full year numbers with us. Okay. So 42,000 tons is the 42,000 tons is the rPET capacity, and 12,600 tons is for the rPSF capacity, and rest is the filament yarns and polypropylene staple fiber. So taken together all these things, we would, we would be having a turnover of 500-600 tons turnover. Okay, got it. Is it possible to quantify the absolute debt reduction that we've taken place, and what should be the interest savings for FY 2025? Yeah. So we have reduced the debt of about INR 200 crore. Okay. Yeah. What would be the overall average cost of borrowings at this stage, post- debt reduction? Post reduction, the cost of funds is about 8.5%. Okay, 8.5%. Okay, thank you so much. I'll get back in the queue. Thank you. We have the next question from the line of Kavit from PhillipCapital. Please go ahead. Yeah, thank you. Sir, I just wanted to understand our sourcing strategy. So, the EPR, as per the EPR guidelines, from FY 2026 onwards, the companies will have to use 30% of the recycled product. So, can you just elaborate on your sourcing strategy? Have you tied up with corporates or from where are we sourcing our raw materials from? So as you see, we are already in this field since last 30 years. We, we are having a quite grassroots level network, sourcing network. ... So, you see, we are already collecting more than 150,000 tons material on yearly basis. And, with the ramp up of our capacity in Warangal, we have already put the network in place for getting the raw material. Okay. But do you see any corporates coming and approaching you for, in order to comply with the EPR guidelines? EPR guideline is on the brands and packaging companies. It is not on us. Correct. Correct. So have they come and approached you in order to get their material or products recycled? Yes, so we are already providing the EPR certifications to some brands. Okay. So what kind of contracts are these? Are these long-term contracts with them or, just a one-time contract with them? No, it is not a long-term contract. It is a short-term contract. Let's say, quarterly contracts are there. Okay. So basically, basically how this is working that, you see, in energy exchange, we are having REC certificates for renewable energy, mm, consumption. You have to consume for certain percentage of renewable energy against any supply through the exchanges. So the similar sort of EPR certification portal has been generated by Central Pollution Control Board, CPCB, and every recycler is getting their quantity of materials recycled uploaded on the portal, and then they get a certification for per metric ton of recycled materials. And this certificate is, you can able, able to sell to the brand owners, and it has to be transferred on the portal. So on portal, if I do a contract with Coca-Cola or Bisleri for a recycling of 1,000 tons of material on their behalf, I have to transfer 1,000 certificates to them on the portal, against which they are paying the certain charges for EPR certificates. So this is working like this only. Okay. Understood, sir. And sir, where do we see the demand coming from in the next couple of years? Because most of we have been catering to the textile sector. So now are we seeing do we see a shift in terms of revenue from textile to, let's say, recycling of bottles, PET bottles? Where do we see the demand coming from? How will our revenue change, sir? Yes. So, so, in our legacy business, on most of the sales, as we discussed, is from the textile sector, 65% sales is from the textile sector, from pure conventional textile sector. And, so from, but from going forward, as we are moving ahead on the putting of the more and more rPET granule capacities, so the major turnover will come from the major sale will come from the packaging industry. Right. So going forward, say in next one or two years, we are seeing almost 50% contribution of the in sales will be from the packaging sector, 50% from the textile and technical textile sector. Okay, so you're saying that in the next, one or two years, the revenue- Sorry to interrupt, but you are not audible clearly, sir. Hello, yeah. Am I audible now? Yes, yes, please go ahead. Yeah. So, so you were saying that in next 1 to 2 years, we are seeing equal share of, revenue from packaging and textile? Yes. That is the kind demand we are seeing from the packaging and because of the EPR norms. Yes. Okay. Understood, sir. Thank you so much. Thank you. The next question comes from the line of Divyam Gupta from Gupta Family Office. Please go ahead. I am audible? Sir, you are audible. Yeah. Yeah. Great. Good afternoon, sir. I just have one question. In the last earnings call, you had guided for INR 1,600 crore-INR 2,000 crore top line, and for 16%-18% operating margins on a consolidated basis. And in today's call, you mentioned the lower end of your guidance, which is INR 1,600 crore at 16%. So are you being conservative or has something changed with us? No, actually, the 1,600-2,000, the guidance is on the fully operational capacities of the Warangal plant. So, in FY 2025, though some of our unit some part of our one production line will be operational by July itself, so we're not getting the full effect of that capacity, as well as the ramp up of our filament yarn capacity is slowly ramping up. So, taken together, we are looking for turnover of about INR 1,800-2,000 crores. Okay. So when at full capacity, it can reach about INR 2,000 crore at around- Yes. Yes. - 17, 18% margins, right? And for 20- Yes, yes. FY 2025, we can account for around INR 1,600 crore at 16%. Right. Okay. Thank you so much, sir. Thank you. Wish you all the best for FY 2025. Thank you. Thank you. Thank you... The next question comes from the line of Zalak Rathi from Agility Advisors. Please go ahead. Hello? Yes, ma'am, you're audible. Please go ahead. Could you please help me in understanding how we can achieve capacity utilization of more than 100%? Like, in our PPT, we have mentioned that capacity utilization is 107%. So how do we achieve that? So basically, I think, this is for RPSS. Right. Pardon me? Right, right, right. So RPSF, yeah, yeah, yeah. So RPSF, what has happened in past twenty-five years, we are gaining a lot of knowledge and understanding of the equipments supplied by our OEMs, and we have do the regular bottle debottlenecking in the process itself. And in few lines, we are even able to achieve 115% of capacity utilization because the debottlenecking process has been done in the process. So, the capacity utilization number is in respect to the nameplate capacity. Actual capacity versus nameplate capacity. Do we have any plan to forward integrate in yarn or fabric business? Well, so we are not having. Our core focus is now on the recycling only, and the mainly on the rPET granules. So we are not having immediate plan in going into the yarn or the fabric business in Ganesha ecosystem. rPET. Forward integration in rPET business? No plan is there for the going ahead into moving further in the rPET business. But yes, it is not ruled out completely. Whenever we will get any opportunity or any business proposition, we may move it from the rPET granules to further value addition. Thank you. Thank you. The next question comes from the line of Bhavya Gandhi from Dalal & Broacha. Please go ahead. Yeah, hi. Thanks for the second opportunity. Somewhere I saw that, you know, you mentioned that you want to gain 25% market share in the rPET granules, and somewhere it's quoted around 1 million tons would be the total capacity which would be needed. So can you throw some light, I mean, where do we get this data from, and how do we intend to get to that capacity, right? Yeah. Yeah. So you see, currently there is about 1.2 million tons of PET chips consumption, working chips. So, by regulation, from April 2025, 30% will have to be the recyclate and the rPET granules to be mixed with the virgin. So, there is a requirement of 300-350 thousand tons. And this 30% is going to be 60% by 2028. So, the requirement of rPET will be double from 350 thousand tons to 700 thousand tons. Plus, there is an excess 14-15% growth in the PET industry. So the consumption of 1.2 million tons is expected to be 2 million tons by 2029-30. So 60% is around 1 million ton requirement is there. Okay, got it. Can you just throw some light on the absolute capacity that we have as of now, closing for FY 2024? You mean overall capacity or you want the rPET capacity? Overall capacity. The overall capacity is, basically, 148,000 tons. 148,000 tons? Yes. Okay. Which has- Hundred and- Yeah, which has been operational. Okay, 148,000 tons. And we'll add only 14,000 more to the total capacity, right? Yes. Yes. Okay. And, yeah, that's it from my end. Yeah. Thank you. Ladies and gentlemen, if you wish to ask a question, you may please press star and one. The next question comes from the line of Sanjay Ladha from Bastion Research. Please go ahead. Yes. Sir, just a bookkeeping question. In the investor presentation of page number 2023, we have given segment-wise revenue and export data. That is for FY 2023 or 2024? Because there is written FY 2023. Sorry, sir. Sorry, I couldn't get. So, sir, in the investor presentation, and on the page 2023, in the segment-wise revenue and export data, we have written FY 2023, and the data is, so the current year going on FY 2024. So just wanted to understand, it is for FY 2023 or 2024? Yeah, so it is FY 2023 only. Sorry, we couldn't update it. We still to update it. It is for 2023. sir, if you can share the data for FY 2024, it will be- Of course, of course, we will update it. We will update it. Thanks a lot, sir. Yeah. Thank you. The next question is from the line of Pradeep Kothari from C.R. Kothari & Sons. Please go ahead. Sir, if you can, throw some color on the competition in the rPET business, where do you see our competitors coming up in the next couple of years? And what kind of capacity is coming up in the rPET business in this sector as a whole? If you can give us some guidance or something. Yes, yes, we have to. ... You will take it? Yeah, sure, sure. Hi, Kumar. So, yeah, so basically, you're absolutely right. There are a couple of players who are coming up with capacities. You know, the existing fiber recycling players, some of the bigger players like JB Ecotex, Alliance, BLS, etc., have also announced their rPET capacities as well. Each of them are coming out with one line capacity currently. And other than that, in terms of big players, Indorama is also coming up with a capacity for rPET in the coming up years. So as of today, the current expected capacity for the rPET industry by FY 2025 end would be around 200-250,000 tons, which is currently under installation. Okay. Okay. That's helpful. That's about it. That's about it from my side. Thank you so much. Thank you. Participants, if you wish to ask questions, you may please press star and one. As we have no further questions, I would now like to hand the conference over to the management for closing comments. Over to you, sir. Yeah. Thank you, thank you very much, to the Antique team and the host. I hope we have been able to address all your queries. We thank all of you. Thank you. Have a good day. Thank you. Thank you. Thank you, Manish. Yes. Thank you, sir. Thank you. On behalf of Antique Stock Broking, that concludes this conference. Thank you all for joining us. You may now disconnect your lines.