Ladies and gentlemen, good day and welcome to the Mold-Tek Packaging Limited Q2 FY 2027 earnings conference call hosted by Emkay Global Financial Services 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. Please note that this call is being recorded. I now hand the conference over to Mr. Rajesh Kumar from Emkay Global Financial Services Limited. Thank you, and over to you, sir. Good evening, everyone. I would like to welcome Mr. J. Lakshmana Rao, Chairman and Managing Director of Mold-Tek Packaging. We thank him for this opportunity. I shall now hand over the call to him for his opening remarks. Over to you, sir. Good evening, everybody. Thank you very much for showing interest in our quarterly con call. I am very glad to inform you that the sales volumes of the company in the Q2 have gone up by 10.1% compared to last Q2, and profits have jumped by 36%, resulting in a very healthy EBITDA per kg of INR 46.5. So, when you compare it to the EBITDA per kg of last Q2, which was somewhere around INR 39, there is a jump of almost 18% in EBITDA margin, which is a healthy sign considering the geopolitical situation around us. All the segments are doing very good in this quarter, and one of the main, most important quarter segments for us is pharma. It has grown by 26.3% in volume. Food and FMCG is up by 23.7%. Paints are also up by almost 9%, while the lubricant pack continued to be a drag with a 12.3% decline. So, the quarter turned out to be a very good performer in view of better segments, better contributing segments have grown at a faster rate compared to the other segments like lubricants and paint, and thereby improving the profitability of the company. As I mentioned in my previous calls, our consolidation of the units at Hyderabad, resulting in single unit producing entire IML labels under one roof has resulted in considerable savings in the cost and improved efficiencies. Also removal of couple of production units and clubbing them in the Sultanpur unit has resulted in overall improvement in the performance and cost controls. Going forward, company is very positive about the food and FMCG because the Panipat plant started picking up clients and the numbers are slowly getting added. And by next season, starting from January-February, I think we will be seeing good numbers coming from the northern region to Panipat. Another good news is that IODEX project, which has been on hold for more than three years, has been cleared with some changes, and the chain molds are also getting ready by November-December, and probably in December or January, we will be starting commercial production of IODEX balm packs. They run into millions of pieces a month. Again, coming to another, three new products have been under development for three MNCs of sizable quantities, and they all will be launched somewhere in the end of December or January, contributing towards the growth of food and FMCG further in the next coming years also. This is briefly the highlights of the quarter. I think we can share more details on question and answer session. Over to the operator. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their 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 assembles. The first question is from the line of Shirish Pardeshi from Motilal Oswal. Thank you. Good evening, Mr. Rao and team. Thank you for the opportunity and congratulations. Sir, starting with the volume growth in the paint, I think paint industry is expected to deliver a good number, and there is a price increases also has been happening. But when we look at the volume growth in this quarter, which is lower. So, two questions here. What is work, and is there any backlog which is getting shifted in quarter three? No, the paint volumes have grown up by 8.6%. Value-wise, they are up by 26%. So, 8%-10% is the general growth of the paint industry. So, I feel comfortable growth has been already achieved in paint. Going forward, things may improve further, because we are now at Cheyyar, started taking orders from nearby clients in the south, which are adding numbers gradually. Hopefully, this may come close to double digits in the second half. Okay. My second question is on food and FMCG. I think the volume growth is picking up. But then, you mentioned that there are some more clients which is getting added. Is this volume growth momentum will continue in second half? Yes, I am very confident that the volume growth will continue to grow at a healthy level because not only the current orders are being executed and new molds are being added, and three or four new products are on the pipeline, which are getting into production in November and December, which will certainly add value to the food and FMCG sector in the coming quarters. Okay, that's helpful. Last on the EBITDA per kg, now we are reaching towards about INR 40+, rather this quarter we have done INR 46. When this mix is tilted towards FMCG and which is a high-value, high-margin product, is it safer that the full year we'll be able to maintain more than INR 45, in the range of INR 45-INR 50 per kg? Yes, we are confident we'll be maintaining now anything around INR 45-INR 46 range for sure, because even this third quarter started on a strong note, and we feel that the momentum going forward only can help it. I'll be very happy even if we do INR 46, which is a big jump from INR 40.7 for the full year last year. It's almost something like around 16%, 17%, and 15% growth in EBITDA margin. Considering the Apart from that, a double-digit growth is still possible in the volume. We'll be witnessing a healthy bottom-line growth. Hello? Thank you. The next question is from the line of Kaushal Sharma from Equinox Capital Venture. Please proceed. Yeah. Hi, sir. Very good evening, and heartiest congratulations on a good set of numbers. Just want to get an update, like in the last call, you have told me about something development you are seeking in your upcoming product in the pharma, like dosing pens and all, and you are finding some partner for that will reduce your time from three years to one year. So, any development in this area? You are also working in semiconductor trays and all. So, any development in all the value-added product that we are proposing to launch or proposing to enter in the new sector? Yes, in case of ophthalmic eye dropper packs, we have already ordered the molds, and some molds are being made in-house. I think by January, we will be having the molds ready, and then dry runs would take at least two months. So by March, product will be ready for testing and commercial production. Hopefully, in the next financial year, we will see the numbers coming in from ophthalmic range of packs. I think they are coming in three stages. Apart from that, we have some good headway in semiconductor tray packaging. We are now in touch with the all three or four top semiconductor companies that are coming up in the country. We have met them, started talking about the specifications and sharing information, the volumes, and the timelines. Accordingly, we are getting prepared to be there when the semiconductor products start in India, which is expected to be in a bigger way in 2028, 2029 onwards. We are in touch with couple of partners who can be a probable JV or at least technology providers. In that direction, we are traveling in next month to China and Korea, and hopefully some clarification would, I mean, some clarity will come by end of this quarter. These two are developing simultaneously. As I said, semiconductors is a business for next 2028 onwards, but we are getting ready right now to find good partners and start a product range that will be most suitable, because different semiconductors will have different applications and different types of trays, JEDEC trays they use. We need to deeply understand the needs of the client before we go for the molds and machinery. That process already began, and at least three semiconductor companies have invited us for discussions, and we are meeting them and taking it forward. Currently, as the major manufacturing country, semiconductors are mostly China, Taiwan, and all, right, sir? Yeah, Taiwan, Korea, and China also are active in the JEDEC trays, which are basic packaging carriers for semiconductors. We are in touch with at least two, three of the players who are active. That would be cost-competitive as well in case, as compared to other countries, we manufacture here and supply those over here? Compared to Europe and U.S.A., there is a huge manufacturer, but their costs are very high. Definitely Asian peers will provide most cost competitive advantage. Here, not only the costing, what we understood from the study, what we did in the last three months, is that there's a variety of JEDEC trays that are required. It's not that you can have five or six varieties and that range is enough. You will need to make several molds and several changes. That excites us because Mold-Tek having the very good tool room and mold knowledge, we'll be able to make a differentiator. That can be a differentiator between us and any other competitors who may enter this field. Having molds and having more variety of products is always exciting to Mold-Tek because that is where our strength lies. As you said, in the pharma, the dosing pens, the revenue would come in the next year onwards? In pharma you're saying or in In pharma. Pharma, yes. Next year we should be seeing some revenues coming from ophthalmic range of products. On the dosing pens, we are still in talks and some samples evaluation is going on. I don't see much happening in the next six months, at least in that direction. But ophthalmic, yes, it will start contributing from at least Q1, Q2 onwards for the next year. And semiconductors is a long shot. It may go into 2028, but we have one more line of closures, specialty closures through Vibe, which is now under testing at commercial, going for commercial molds by April, May. Hopefully, Vibe will be starting contributing revenues in the next financial year. Got it, sir. Thank you very much for this. Thank you. The next question is from the line of Chirag from Keynote. Please proceed. Yeah, thank you for the opportunity, and congratulations to the entire team for the great set of numbers. My first question is related to the lubricant segment. If I'm not wrong, after losing one client, our expectation was that in lubes we would be doing about 600 tons volume on a monthly basis. However, it is slipping down further. As per you, if you could guide us, what can be the normalized situation for the lubes? If you notice, this is a trend that is going on from Q1 onwards. There used to be one or two plus or minus percentage points, but this time it has gone up to almost 15% in the H1. That is mainly because of the couple of our major private companies, private lube companies having input issues. Public sector, we have never been with public sector. That is why our pain is visible in the lube industry, having lost couple of clients in their volumes. That is why lube continues to be on the decline. What you are seeing now is the decline of last year to this year. Last year there was no such war or any disruption. Whereas this year, I think every quarter you will notice some decline rather than a positive number coming in, growth number coming in lubes. Got it. What will be fair to assume, like if we look at the mix in terms of revenue or volume related to paint, food, and pharma? How are you looking at the mix down the line two years, three years? Today paint is continue to grow at 9%. Probably it will catch up to 10%, 11% in the full year is possible because the indications are good. Paint industry is picking up at least for last couple of months, and their indications are positive for the next coming season. Of course, the season is, we are in the middle of the season. In paint, we may still see a possibility of a double-digit growth. Food and both QPack will certainly see very good numbers because several new products are being added with backup orders, and IODEX also is starting. So food and FMCG will witness similar or better performance in the next couple of quarters or even beyond that, because Panipat plant is all set now, and some clients have been regularly being added. Additional clients are coming in, and we hope next year real growth in food and FMCG can come through Panipat plant. Q Pack is also picking up very well, and the QPack business is now growing into other segments in a big way, especially detergents. There we have another major player given us an order. I cannot give the details today, but the supplies have to start from end of November. Already the artworks have been shared and labels are under development. This is another new development in the QPack segment, which can add considerable numbers in the coming quarters. It is very encouraging to see food and QPack doing pretty good. Pharma, as I said, we are aiming at somewhere close to INR 50 crores turnover. We are on track. I think we reached a turnover of INR 24 crores for the first half, and we hope we may continue to grow at a good pace and reach the INR 50 + crores turnover in pharma as projected. My confidence grows more because of the food and QPack. I mean, demand is growing rapidly. New products in the food and FMCG domain are having big volumes. I cannot share the names now, but you all know the brands in the country. They have been very famous brands we are introducing in November and December. These product range will contribute to better numbers in the coming quarters. Very helpful, sir. Sir, next thing, generally if my understanding is correct, in this business we keep about four months of inventory with us. If I look at the way the raw material prices have moved, is it fair to assume that the kind of gross profit per kg that we are making is expected to be slightly higher than what it should be? No, no. Nobody keeps four months inventory in this industry. Even if you consider the SFG, FG, and raw material put together, it will be maximum one month because they are very voluminous. Our carrying time is 52 days now. Currently it is 52 days because the raw material may be half of it. Let us say 25 days is raw material. SFG and FG will be remaining 25, 27 days. So there is no need to have four months inventory, neither we can have space because they occupy a lot of space, especially the finished goods and semi-finished goods. So we always have limited stock of about a month material, and the rest is SFG and FG. Got it. Sir, if you could help me understand the kind of product that we are making for Vibe and how much that it can translate into numbers for the next year? Yeah, Vibe, we are making specialty closures, spouts for Vibe. Already, a set of seven products are developed and approved by Vibe. In this month of November, they are going for commercial, I mean, client trials. If the trials are successful, which I am sure they will be because we have already tested them thoroughly, there will be orders, and then we have to make the commercial molds, which may take another four months. So sometime in March, April, we may start commercial production. The volumes may start gradually picking up to become a considerable size in one or two years' time. I can assure you the EBITDA margins will be far better than even pharma. Okay. Great. If you could just highlight a ballpark understanding, like how big it can be, like two years down the line, how much are we expecting to- Yeah, two years down the line, we should be able to see at least $ 5 million-$6 million, let's say INR 50 crores-INR 60 crores top line, with a very strong EBITDA, somewhere around 30%. Got it. Thank you so much, sir. I will join back the queue. Thank you. The next question is from the line of Richa Agarwal from Equitymaster. Please proceed. Hello. Richa, you may proceed with your question. Due to no response from the current participant, we move on to the next. The next participant, Pavitra from PrimeInvestor, you may proceed. Hi. Thank you for the opportunity. I just wanted to follow up on the pen injector plans that you have. Could you throw some more light on when we could see these translate into actual business, your estimate of that? Also, what kind of customers are you targeting for these products, domestic, export? Are we planning to play into the GLP-1 opportunity, or is there something else? Any insight? You are talking about Vibe? would be helpful. Vibe products? No, sir. I am talking about the pens, the auto-injector pens. Mm-hmm. Auto-injector pen, I just answered that the development is still on. Samples are being assessed by the clients, and we are working with a couple of patent owners in China. Okay it might take some more time to talk about numbers. Okay. More progress is happening on Vibe, which is a caps and closures line of business, which we entered in a JV with them. While Vibe takes care of marketing, we are developing the molds and production. That is mainly meant for U.S. and Europe markets. The pens, will we get more clarity on it in like FY 2028? Is that something realistically, something we can Yeah, injector pens, not 2028. We may have to come into agreement with a couple of JV players we are trying to approach and make a deal. As I said, in December, there is a travel to China, and hopefully some talks may happen. But nothing in the anvil in the next two to three months, it won't happen. Even if it happens, it will start as a trading. I mean, representing them and selling their products here in India for next six months or so. Then we'll be looking at manufacturing them here back in India. Okay. These are targeted at domestic pharma companies in India? These are targeted for the domestic pharma companies, which will be manufacturing either diabetes or the semaglutide kind of products. Okay. Thank you. Thank you. The next question is a follow-up question from the line of Chirag from Keynote. Please proceed. Yeah, thank you for the opportunity again. Sir, if you could just highlight the mix of IML and non-IML volume and revenues for the quarter? Yeah, IML volumes, I think, are close to. One second. 77% now, and non-IML, that is labeled products, and non-labeled products are 22.68%. There is a small improvement further. Last year, the last Q2, it was 70- Around 70%. It becomes 77% now. So IML still continue to grow. One of the happening points is in Asian Paints, the IML adoption is increasing, which is also one of the reasons why we see a healthy growth in paint industry. And value-wise, would it be [inaudible] Yeah, value is 78%, up from 76%, 78.25%. Got it. Sir, nextly, if I look at the current capacity and the kind of volumes we are doing, we are soon to reach the 70% utilization again. Will it be fair to assume that another 10% of the size Capex is expected to be there for FY 2028? Another what you said? Another 10%. Yes, today we are at around 67,000. We would be adding another 6,000-7,000. Not much. We already added in this year capacity, and some more machines are on the way, which might take it up close to 68,000-69,000. Hopefully, the next year we will be starting with less than or around 70,000 capacity. Got it. As I said always, 70% utilization of the capacity is always very good, and anything beyond 75% is generally not workable in an injection molding unit, given the complexities of molds and under-utilization of the machine capacity. Anything around 75% is a great number. Correct. That was the only reason I was asking that we might be requiring an additional capacity expansion for the next year. Yeah, yeah. 66,900 will definitely become 70,000 by beginning of the next financial year. That again will be aiming at least somewhere close to 50,000 tons from somewhere around 42,000 last year, and probably this year we may end up around 46,000, 47,000. From 46,000, 47,000, we will be again looking at 50,000, 51,000 for next financial year. That volume growth is possible. One thing you need to understand is, tonnage is not the only criteria nowadays because paints are becoming more or less stagnant. Only paint industry is growing, lube industry is falling. Overall paint contribution in the tonnage is more or less stagnant, while the entire growth is coming from food and FMCG and pharma, where the weight of the component is less. Per ton, we get much more value add. Even if the volume growth looks 10%, in my opinion, it is equivalent to 14%, 15% growth of last three years. Because those days, paints used to be major contributor to our top line and bottom line. But nowadays, slowly food and pharma, and tomorrow Vibe will start contributing to the growth. They are lighter in weight, but add more value to the both revenues and EBITDA. Right. Just one last thing from my side. When I look at the finance cost as an expense line item, is it fair to assume that due to this higher, the incremental rise in crude prices impacting the requirement of short-term borrowings for managing the working capital for now, and as soon as there will be a normalization, requirements of short-term debts would go back to the earlier level? Yeah, you are correctly guessing that. One of the reasons for increased interest rate is higher utilization of working capital for higher raw material prices. If you look at as a percentage, it is moved up from earlier from 4.1% to almost 5% now. Probably it will come down back to 4%, 4.2% in the future of the total revenue, maybe once the raw material prices come down. As it looks, unless there is a sudden complete peace in the West Asia, the raw material prices are not expected to drop in a hurry. For the year, we are factoring almost 4.5%, 4.7% as a finance cost, and building up our model. Got it. Just one last, if I can squeeze in. Sir, based on my understanding, since last 12- 24 months, we have been focusing a lot at the export markets too, if I'm not wrong. Any updates on that? Are we getting any clients onboarding for the export market? See, exports are becoming again difficult in this scenario of increasing freight costs. In spite of that, there is a rise in our exports gradually. It's not jumping in huge numbers, but there are exports still happening, and we see some steady growth, but no multiple growth due to this conflict and increasing freight costs. We are now, in fact, in December expecting a client for our pharma products from Egypt, and that is a big opportunity, and they already tested our samples and approved them. They're coming in for the CPHI show happening end of November, and then they have scheduled a meeting with us towards the end of this month or beginning of December, and hopefully something might fructify. For that, other side exports are stagnated, no decline, because there are products like stent packs and batter packs which we export to U.S. They continue to buy. There was a lull in the middle during the war, but again, they also have to sell their products, so they can't get rid of packaging altogether. Again, they restarted, and the numbers are slowly inching up. Got it. Thank you so much, sir, and all the best to the entire team. Thank you. Thanks, sir. The next question is from the line of Akhil Parekh from 360 ONE Capital Market Private Limited. Hi, thanks for the opportunity, and many congratulations, sir, on the strong set of numbers. Sir, my first question is, in one of the comments you mentioned that the start to the third quarter has been very strong. Would you be able to share some color, like how the first month, that is month of October, has been in terms of overall demand, basically? Yeah, the demand is pretty good in October, and the numbers compared to the last October, I am saying, is very satisfying. Maybe it is too early to talk about it, but definitely it is much better than what in a month-over-month growth-wise, October stands out as the best one so far. Need not be the highest in among the months, but because we know April, June, July are our April to June, July are our seasonal demand months, followed by again in February, March, we will see the demand picking up in the fourth quarter. But this month started, October ended up on a very strong note, I can say that. Is it fair to assume we should be crossing double-digit volume growth for full year FY 2027? Yeah, that is the target still today. Today we are at 8% for the six months period. Correct. Up from 7% in the Q1, now we are at 10.1%, so we are somewhere around 8%. Hopefully, we are still positive it may take us to double digit in the second half. Sure. Sir, second question on the [inaudible] There are new opportunities in food and FMCG. I just explained to one of the inquiries. I see a strong performance coming up in the rest of the year, and hopefully we may pull up the volume growth to 10%. I also said, Akhil, that in future, more than looking at the volume growth, I would encourage you to look at the EBITDA growth. EBITDA growth is at 35%, quarter-on-quarter, and 23% H1 on H1. If you compare last year to this year, Q2- Q2, the H1, I mean the EBITDA, sorry, PBT has gone up by 35%, and EBITDA as a absolute number has gone up by almost 30%. This is where we should be focusing in future, because volume numbers depend more on pails, which are heavy. Like a 20 liter pail is about 1 kg weight, whereas you come to thin-wall ice cream cups, they may be 18 g, 20 g, 25 g each. As the growth is coming more and more in the light-wall, light thin-wall section products, we will be noticing the volume growth may not look 14%, 15%, but the bottom line growth will be higher because of the better margins. I would encourage you all to look at the EBITDA growth, which will be a correct reflective of the company's performance. Sure, this is very clear. My second and last question is on the cash flow front. If I look at our EBITDA, we did around INR 100 + crore EBITDA in first half, and we kind of did similar kind of operating cash flow for first half, almost INR 93 crore. Assuming we double our EBITDA for, and kind of do around INR 210 crore- INR 220 crore of EBITDA for full year, how should one look at it operating cash flow perspective? Because we have seen a sharp improvement. Should we expect similar kind of improvement in cash flows to sustain? That is one part to my question. Second, given that our Capex requirement will not be more than INR 70 crore, INR 80 crore, is it fair to assume we will generate a reasonably good free cash flow for full year FY 2027? Okay. See, the cash flow will We are aiming at doubling the cash flow from INR 107 crores- INR 215 crores, as I mentioned in the beginning of the year. I am still standing on that. We hope to see an EBITDA of INR 250 crores compared to INR 173 crores last year. That is a handsome growth of more than 20%, 23%, 24%. Coming to the investments, as I said, investments have been under, I would say, lower levels compared to the last three, four years, and they should be ending up somewhere around INR 75 crores for the full year. Already INR 60 crores has been spent in the first seven months, and rest of the machinery and one more printing machine and some other balancing equipment and molds will be adding up to somewhere around INR 75 crores- INR 80 crores for the full year. There will be adequate cash in the system after removing interest and income tax. We still will have somewhere around INR 46 crores plus INR 80 crores, say almost INR 160 crores inflows, and the dividend outflows if you remove, somewhere around INR 100 crores, INR 125 crores, whereas the outflow will be somewhere around INR 80 crores, INR 85 crores. This time will be cash surplus, and you may see the long-term debt or the debt as a overall start coming down, at least in this year, end of this year. Thank you. The next question is from the line of Sandeep Modi, an investor. Please proceed. Yeah, good evening. Congratulations on good set of numbers. Yeah, sir. I wanted to ask some few questions. The new land which we have purchased, when it will be operational? Just a week ago, we got it registered. I think last two, three days ago, the land has been registered. There was a long delay from the industrial department in registering the land, which got registered just few days ago. We have just taken the possession of the land, and now the work has to start. Meanwhile, Sultanpur B block itself, we are setting up our ophthalmic product range. Because we cannot wait for months to get the property. Yeah. We waited almost a year. Yeah The construction activity started in the Sultanpur B block, and that production, as said, will start by March, and commercial production by April, May next year. This new area is fully available for our future growth into either the auto-injector pens or the semiconductor trays or both of them. We have not yet taken a call on that as of now. Okay. Okay. Okay. Sir, one more question. Total how many robots we have and how many we are planning to add more? I last count, I think robots more than 120, 125 robots we must be having because Okay most of our products are now shifting towards IML, and our machines have become more than 200 recently. So we must be having at least 130- 140 robots. Okay. Okay. Sir, one more thing. How many molds in Vibe and pharma are in process? Sorry, in what? How many molds in Vibe Generation and in pharma are in process? In Vibe, there are seven more molds under process. Seven are already approved by client, and we are awaiting that signal for commercial molds development, which might take another four months, as I said in the last quarter. It is progressing well. Another seven molds, two or three are already ready, and another four components will be ready by end of December. So by end of this year, we will have 14 components ready, and we may get the approval for commercial molds for seven of them, which may be ready by April next year. That is why I am saying Vibe numbers will start trickling from next financial year. If all 14 products catch up into commercial production, there can be a sizable contribution that we can expect in the second half of next year. Okay. Okay. For pharma, how many companies we are strongly getting orders, et cetera? Any good news about pharma? Yeah, in pharma, we are adding clients very rapidly. Even today, as we speak, Mr. Rana and Amol, they are on a trip to Bangalore, meeting five clients there. Every quarter, we are adding two or three big hands. Going this rate, we will be able to maintain our projection of INR 50 + crores in the full year this year, and probably INR 70-INR 75 crores for the next financial year. Okay. Okay. Any details about the strategic agreement for expanding business in Egypt and Vietnam? No, there is no strategic alliance or anything we are seeking. We are working with an importing company in Egypt who are looking at our products and already tested them. They are coming here in the first week of December to inspect our facilities, and probably some export opportunities may start based on their visit. Okay. Okay. Sir, any new sectors we are planning to start? Yes, we are looking very seriously at auto-injector pens, that is in pharma, and then semiconductor trays, JEDEC trays. Yeah. And also, we are planning the regular trays for dairy and other applications, which will add well to our machinery. Especially whenever we find idle time, these trays can be built up as a substitute product. But semiconductor trays and auto-injector pens are very high value-add products, which require a specialized skill set and mold-making capabilities, and some cases, patents also. In the case of auto-injector pen, we need a patent for which we are looking for a partner. In the case of semiconductor trays, there the variety of molds, variety of products are very high, and they are very high-cost products requiring very high accuracy and dimensional stability. So, this kind of challenging projects will be where Mold-Tek's strength can be used. So, we are very excited about these new opportunities. But they may take one or two years to fructify. Yeah. Sir, I got this news from the annual report. I am sorry to interrupt, Mr. Sandeep. May we request you to join the question queue, as there are several other participants waiting for their turn? Okay. Thank you. The next question is from the line of Richa Agarwal from Equitymaster. Please proceed. Yeah. Hi. Am I audible? Yeah, Richa. Go ahead. Yeah. Hello. Good afternoon, sir. My question is related to the investment that we are planning in Vibe. If you could just give us a breakup of what kind of investment in molds and machineries to reach that INR 50 crore kind of mark that you have highlighted. Yeah. See, the advantage of injection molding is all the machinery is fungible. So, we may not invest anything on the machinery until we have some firm commercial orders, whose clarity we will be coming to know by end of this year. So, based on that, the investment will be in the tune of around INR 10 crores-INR 15 crores in the phase one, which will be sufficient to give us a turnover close to INR 40 crores-INR 50 crores. So, around INR 15 crores you can take would be a requirement of Vibe, both in molds and machine side. And some of the machines which are found idle can also be used for these machines, for the production of these components, because they do not require any special conditions other than a clean room, which we already have. Okay. Okay. My second question is related to the raw material cost, considering that the crude prices are going up and if this scenario continues, I mean, could you just comment on the willingness of the customer to accept higher prices? I know that we are helped by the product mix, but purely on the gross profit margin itself, what kind of openness is there for the customer to accept the price hikes? See, Richa Agarwal, you have asked me a good question. If the clients are not willing to participate in the price rise and they want to stick on to their old price, you would not see this kind of performance from Mold-Tek Packaging. This is the ability of Mold-Tek Packaging to get the price rise actually faster than previously agreed terms because they were equally worried about not having the product packed at their end. See, end of the day, packaging, especially rigid packaging, is not fungible. Nobody can go back to a metal tin or a glass bottle while they are selling their products in the plastic containers with IML decoration. Whatever happens, let the price I am not saying the price should go up further. It is already gone up by 60% in this last six months, raw material price. But everybody is ready to accept and agree with the reality that the raw material price has gone up, and they are ready to bear the cost because no molder can bear that cost for the sake of retaining a business. After all, this business has to go on, and they are now aware of the raw material price increase. Whenever the price decreases, they take the price benefit. We do not keep it in our pocket. So, this is a long-term agreement going on for last 30, 40 years. Hence, there is no doubt in your mind about whether our ability to get the raw material price hike as and when that happens. If that is not the case, you would not be seeing this kind of performance. While our volumes have gone up by 10%, our bottom line is shot up by 35%. That kind of volume growth, 36%. So, that shows very clearly that there is no impact of raw material price on our performance. Had the material been little lower, let us say 120 or 115 level, we might have got some more business, and that would have added further to our numbers. But nobody stops buying packaging because their entire product cannot go into the market without packaging. Okay, that was helpful, sir. Just one more related point. Like, maybe a few quarters ago, you were witnessing heightened competition, but with these higher crude prices, are you also seeing that the other players may be getting phased out or something like that? No, I don't think nobody will be phasing out at any stage because, as I said, whatever applies to Mold-Tek will, I mean, more or less applies to other molders also. It's basically our ability to expand our product range, consolidate our operations, and bring efficiencies in the costing is what really brought us a better bottom line compared to maybe compared to others. I don't have comparison. But it's not true to say that because of the raw material price rise, somebody will be shutting shop. They will also be able to pass on if they are a reliable supplier. All right. All right. Thank you so much and all the best. Thank you. The next question is on the line of Tushar from Omega Portfolio Advisors. Please proceed. Thank you for the opportunity and congratulations on the results, Mr. J. Lakshmana Rao. I just wanted to know the management aspiration to increase the EBITDA per kg from INR 46 for the next three years going forward. In terms of the pharma pens, the pens which you are talking about, what are the discussions happening on ground in that regard, and when can that materially contribute to our EBITDA? I think, as I said, our EBITDA shot up a clean 15%-18% in the last two quarters from INR 40.6 last H1 to INR 46.6 in the current H1. It is a very big jump looking at the past data. But we are still positive that these numbers can still grow as exports and, sorry, mainly pharma and food and FMCG sales are increasing, and Vibe also starts contributing. So, as you said, in two to three years, it is nothing wrong to hope for a INR 50 EBITDA margin in the coming two, three years. So, that is what our internal target is. That will be a sizable number, because if you notice the last five years, we never crossed INR 40 or INR 41. So, from there to INR 50 EBITDA is a big call, but I think we are on track and our product range. If semiconductor trays and batter packs also are added in next two, three years, it may not stop at that level also. It can go up further after two, three years. So, let us hope everything, I mean, is moving good now, and if things fall in place as plans, INR 50 you can keep it for two, three years as a short-term goal, and it can be better once in case we succeed in semiconductor trays and injectables. Fair enough, sir. Sir, I just wanted to understand what gives us confidence in terms of semiconductor trays. I understand it is a consumable product. So, what is our right to win in this market? The semiconductor trays are at a very nascent stage in the country today. It is better to be there and start making, understanding the product, understanding the process, which we have already done. And now we are in talks with three semiconductor companies that are, you know, the top names in the semiconductor industry who are starting or started recently. And we are in touch with them and understood the criticality of the space and the volumes and the pricing and the material that are to be used and the variety of molds that are required. So, the knowledge is now being imbibed, and we feel confident that such a product is where Mold-Tek can shine, because where there is a complexity, accuracy, and several new molds are required, our strengths in tool room and designing and in molding accuracies, we will be able to contribute. This is an exciting field, but there is nothing really going to happen in the next two months or six months. It may take a year or two to really see the numbers coming in and how our semiconductor industry fares in the country. But it is an exciting field, and again, here also fungibility is there. Most of the injection molding machines which we have recently bought in the last five years at least, they are all suitable for manufacturing this kind of precision components. So, what is required is molds and then clients. Once that clarity comes in with the material that is already available in the world, compound materials for the semiconductors, our processing team can easily master that technique. So, we are awaiting for more clarity from the clients and also the industry itself, and we are ready. That is how much I can say. But how it fans out, how quickly, it all depends upon how the industry fares in the country. But as I said, our side, only the molds are required, and even the clients are ready to bear the molds cost. So, it is a kind of really an exciting new industry which is coming for us at this juncture. And if that does well and we do well, that EBITDA margin of INR 50 can easily be crossed. As there are no further questions from the participants, I now hand the conference over to the management for the closing comments. Over to you, sir. I take this opportunity to thank Rajesh and Emkay for arranging this conference and also thank all the participants for sparing their time. I sincerely hope that we all will have better future, not only in our company, but also in general. I take this opportunity to wish all of you a very happy Diwali and a great year ahead. Thank you very much. On behalf of Emkay Global Financial Services Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.