Ladies and gentlemen, good day and welcome to Borosil Limited Q2 FY 2027 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 touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Manan Goyal from ICICI Securities Limited for the opening remarks. Thank you, and over to you, sir. Thank you. On behalf of ICICI Securities, we welcome you all to Q2 and FY 2027 result conference call of Borosil Limited. Today, we have with us senior management represented by Mr. Rituraj Sharma, CEO, Mr. Rajesh Kumar Chaudhary, Whole-time Director, Mr. Anand Sultania, CFO, and Mr. Dhaval Patel, Head, Investor Relations. Now, I hand over the call to the management for their initial comments on the quarterly performance. Then we will open the floor for Q&A session. Thank you, and over to you, sir. Thank you, Manan, and ICICI Securities for arranging this call. Good afternoon to every one of you. The Borosil team is delighted to be communicating with you once again. I am pleased to inform you that Borosil Limited's board has approved the financial results for Q2 FY 2027 and H1 FY 2027 during our board meeting held on October 29th, 2026. We have submitted our results and an updated presentation to the stock exchanges, and they are also available on our company's website for your review. Some quick updates for Q2 FY 2027 and H1 FY 2027. I would like to highlight an important positive development for our borosilicate glassware business. Following the anti-dumping application filed by Borosil, the Directorate General of Trade Remedies, DGTR, in its final findings issued on September 24th, 2026, has conclusively established significant dumping of borosilicate table and kitchenware glassware from China, resulting in material retardation of the domestic industry. DGTR has recommended the imposition of anti-dumping duty for a period of five years, subject to notification by the Ministry of Finance. This is a significant milestone for Borosil, particularly in light of our substantial investments in establishing indigenous manufacturing capabilities. We believe that the implementation of the recommended duty will help restore a level playing field, improve capacity utilization and profitability, and create a more conducive environment for future investments, capacity expansion, and import substitution. We remain optimistic about the long-term growth prospects of this business while awaiting the government's final notification. We are pleased to inform you that the company, through its wholly owned subsidiary, Stylenest India Limited, has successfully commissioned setting up of BIS-complied manufacturing unit with two double-wall lines for vacuum insulation flasks, bottles, and containers in the state of Rajasthan. The commercial production from the two double-wall lines commenced on June 30th, 2026, and the production from third double-wall line is expected to commence in January 2027. We have successfully commissioned captive ground-mounted solar power plants at Bikaner in three phases, aggregating to a total capacity of 35.8 MW peak with a 16.9 MWh battery energy storage system. Consequently, solar power now meets approximately 60% of our overall power requirements, significantly reducing our dependence on conventional energy sources and strengthening our sustainability initiatives. The company has strengthened its direct-to-consumer retail presence with the launch of its first exclusive Borosil brand stores in Pune and Gurugram. These stores provide an immersive shopping experience, showcasing the company's comprehensive portfolio of kitchen, dining, home, and lifestyle products under one roof. The initial response has been encouraging, with good consumer traction in both locations. This initiative is aimed at enhancing brand visibility, deepening consumer engagement, improving product discovery, and creating an additional channel for revenue growth. The company will leverage the learnings from these stores to progressively expand its exclusive retail network, strengthening its direct consumer connect and long-term brand equity. I am pleased to report that Borosil Limited delivered a healthy performance in H1 FY 2027, with revenue from operation increasing to INR 627.4 crores from INR 576.8 crores in the corresponding period last year, registering a YoY growth of 8.8%. This growth, achieved despite challenging market conditions, reflects the resilience of our business model, the strength of our execution capability, and the continued trust and loyalty of our customers. It also reinforces our competitive positioning in the industry. The company delivered a significant improvement in operating profitability during H1 FY 2027. Gross profit increased by 15.6% to INR 408.9 crores compared to INR 353.6 crores in H1 FY 2026. Gross profit margin improved substantially by 390 basis points from 61.3%- 65.2%. EBITDA, excluding other income, increased by 25.5% to INR 107.7 crores from INR 89.4 crores in the corresponding period last year. In response to the increase in fuel, raw material, and packaging material costs arising from the West Asia conflict, the company implemented pricing increases across all categories. These measures, along with an improved product mix and continued focus on operational efficiencies, helped partially mitigate the impact of higher input costs and supported the improvement in overall gross and EBITDA margins. In H1 FY 2027, our other operating income stood at INR 24 crores on account of shared service support income and royalty income, with the related expenses reflected in total expenses. With other operating income of INR 16.2 crores in H1 FY 2026, profit before tax for the half year was INR 60.3 crores versus INR 53.9 crores in the same period last year. The total other income of INR 4.4 crores in H1 FY 2027 includes rent income of INR 2 crores and investment income of INR 2.1 crores, while the total other income in H1 FY 2026 of INR 11.8 crores included rent income of INR 1.9 crores, investment income of INR 2.2 crores, and a one-time stamp duty reversal of INR 7.2 crores, partly offset by professional fees of INR 1.6 crores. Depreciation and finance costs increased to INR 51.8 crores in H1 FY 2027 from INR 47.2 crores in H1 FY 2026, partly on account of commissioning of two double-wall Hydra lines. Overall profit after tax improved to INR 44.7 crores from INR 40.1 crores in H1 FY 2027 compared to corresponding period last year. The consumer business delivered a strong improvement in operating profitability during Q2 FY 2027 and H1 FY 2027, driven by a favorable product mix, improved sales realizations, calibrated pricing actions, and operational efficiencies across key categories. Domestic appliances and stainless steel cookware benefited from strong growth, premiumization, and improved operating leverage, while glassware profitability improved through better product mix, higher realizations, and savings from captive solar power. These gains more than offset the significant input cost inflation arising from the West Asia conflict, particularly in opalware, where higher LPG, raw material, and packaging costs were only partially recovered through price increases, as well as the initial ramp-up costs of the Hydra manufacturing facility. Overall, the improvement reflects the strength of our diversified product portfolio, disciplined pricing, and continued focus on operational efficiency. As on September 30th, 2026, at the consolidated level, Borosil Limited maintained a strong balance sheet with investments, cash, and bank balances of INR 67 crores against total debt of INR 162.8 crores, resulting into net debt position of INR 94.8 crores. Now let's take a closer look at our category-wise performance for H1 FY 2027. Borosil's consumer division continues to expand both glassware and non-glassware categories under the Borosil brand, along with the opalware range under the Larah brand. The Larah opalware segment reported sales of INR 210.7 crores in H1 FY 2027 versus INR 195.4 crores in H1 FY 2026, reflecting a 7.8% growth over same period last year. In our glassware segment, which includes borosilicate, microwavable, servingware, glass tumblers, lunch boxes, and storage solutions, we recorded a year-on-year growth of 2.7%, with revenue reaching INR 152.6 crores in H1 FY 2027 compared to INR 148.6 crores in H1 FY 2026. Here, the shift in the calendar for Diwali festival impacted the timing of seasonal demands and sales, resulting in Q2 FY 2027 and H1 FY 2027 sales and financial performance not being strictly comparable with the corresponding periods of the previous year. The non-glassware segment, comprising a diverse portfolio of small home appliances, insulated bottles and flasks, cookware, and other kitchen essentials, registered a strong growth of 10.9%, with turnover increasing to INR 241.2 crores in H1 FY2027 from INR 216.6 crore in H1 FY 2026. With the commissioning of two double-wall Hydra lines, the company has been partially able to mitigate BIS compliance requirements. In Q2 FY 2027, our Hydra sales have improved by about 30% compared to corresponding quarter last year. Borosil is on a transformational journey to address key ESG opportunities and create long-term value for our customers. A strategic priority for us is lowering our operational carbon footprint and meeting decarbonization targets. In line with this, we have successfully commissioned 35.8 megawatt peak of ground-mounted solar plant with 16.9 MWh battery energy system at Bikaner in three phases. Further, an additional 6.5 MW peak captive solar plant with 5 MWh battery energy solar system at Bikaner with estimated project cost of INR 27.6 crores for Borosil Limited is under implementation. On the similar line, to meet the power demand of Hydra facility, we are setting up ground-mounted solar power plant of 3 MW peak in Bikaner under Stylenest India Limited with an estimated project cost of INR 10 crores. This project is expected to achieve its commercial operation during Q4 FY 2027. These initiatives reinforce our commitment to sustainability, energy independence, and long-term value creation. Considering the company's evolving business environment and overall manufacturing strategy, it has decided to adopt an alternative approach to setting up a new glassware manufacturing project at Bharuch. Accordingly, instead of the company setting up and funding the facility directly, Borosil Scientific Limited will set up the facility at Bharuch, Gujarat, and incur the associated CapEx, subject to the requisite approvals. The company's long-term requirements for the relevant glassware products will continue to be met through the existing manufacturing arrangement with BSL. In Q4 FY 2026, the board also approved the expansion of borosilicate pressed glass furnace from 25 tons per day to 32 tons per day at Jaipur in addition of third forming line. The existing BG furnace was set up in January 2024 and is due for rebuild in January 2028 in the normal course of operation, whereas current furnace utilization level is 90%. Hence, the board approved expansion with third additional forming line with estimated CapEx of INR 50 crores. This capacity expansion will help company to remove capacity bottlenecks, improve operating efficiency, lower production costs, and enhance competitiveness. It will further help to improve product diversification and portfolio expansion. The project is progressing as per plan and expected to commission by end of Q4 FY 2028. As part of our strategy to drive sustainable growth, we are strengthening the Borosil brand through a consumer-centric approach, leveraging the consumer insights to identify opportunities for category expansion, improve product adoption, and enhance market penetration. In glassware, our focus is on expanding usage occasions and driving growth in storage solutions, while in appliances, we are prioritizing stronger brand visibility, retail presence, and portfolio awareness to accelerate consumer conversion. We have initiated a focused hero product communication strategy led by the Vita Rich slow juicer to drive product awareness, encourage healthier lifestyles, and strengthen brand relevance in line with our philosophy, Designed for a Better You. In summary, despite near-term challenges, Borosil's strong brand equity, diversified portfolio, expanding manufacturing capability, and growing omnichannel presence provide a robust foundation for sustainable growth. We remain focused on translating these strategic strengths into improved business performance, enhanced profitability, and long-term shareholder value, reinforcing our confidence in the company's growth trajectory. With that, I would be happy to take your questions. 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 touch-tone 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 Sucrit D. Patil from Eyesight Fintrade Private Limited. Please go ahead. Good afternoon to the team. I have two questions. The first question to Sharma is, our latest results show a big jump in the newer consumer products like home appliances, while our traditional glassware sales were a bit softer. As we push harder into these appliances, what is the biggest execution risk of moving away from our core glass business, and how do you plan to protect our market share if competitors start aggressively undercutting us on the price? That is my first question, and I will take the second question after this. Thank you. Hi. Sorry, I think if I understood correctly, you said that our traction in appliances is higher compared to our glassware. Is my understanding correct? Yes. You are right. In fact, the glassware appliances category has shown stronger growth compared to the glassware section. Two reasons. One is the glassware, we are in the process of still seeding the market, expanding the portfolio, and also our penetration in terms of distribution. Glassware, like we said earlier also, if you look at the last two years, what we have done to glassware, the utilization capacity within the tonnage and the category adoption has significantly gone up. Glassware, compared to an appliance, like it is not fair to both equally, because appliance in terms of a daily use is far higher compared to glass. Glass is an adoption thing. Even having said that, we, in fact, are talking of again capacity expand glassware. Like to like, because appliances from a daily use perspective is an established category compared to glass, it seems that glass is performing softer, but so is not the case. If you look at the last two years and even this year, adoption of glass has significantly improved in terms of our selling the tonnage also, in terms of revenue also. Specific to Q2, for example, because of the Diwali month calendar moving forward, the B2B impact comes in, which gets covered going forward. This is how it is between the glass and the appliance thing. Okay. My second question to Mr. Anand is, the company's overall profit margins look better this quarter, but as you have mentioned, most of this came from the timing of the Diwali festival rush, if I'm not mistaken. What is the risk that our profitability drops back down once this seasonal demand gets over, and what external cost pressures are you most worried about for the next few months? Just want to understand a forward guidance on this. Thank you. Just to answer your question, in fact, on the Diwali side probably, Diwali was earlier last year versus this year the Diwali is late. It is in the month of October. That's a positive impact till half one, because the maximum sales will happen in the month of October. As far as the profitability is concerned, it's not driven by one single factor. There are multiple factors. Quarter one versus quarter two, the West Asia impact has kind of subdued. It has come down. Primarily, the LPG prices, raw material, we have seen everywhere. That first quarter versus second quarter, it has become better. The prices for all the categories that we have passed on. In the first quarter, we have not been able to fully pass on the prices. The price pass-ons in the second quarter has been better. In fact, all the solar initiatives that we have taken, from the second quarter onwards, we have the phase III implementation where we have additional savings on the solar side also. All of this will contribute going forward as a more sustained margins in the business. Thank you. Just a follow-up on my first question to Mr. Sharma, actually. The part B of my question was, just want to understand if you are leaning heavily into appliances, and this opens up for much tougher competition space for us. How do we plan to defend ourselves if rival brands start undercutting cost or if it gets into a price war kind of scenario? I will explain this. First of all, any category, like we are not only, say, appliances in one category, we are also in opal, steel, cookware, et cetera. We are not in any category at the cost of any other category. That is number one, okay? Each category, we go by what the end customer is desiring from us, okay? What the next customer wants from us. And the kind of resources or the focus and the approach to every category is what as per the category requirement. It is not being subsidized or, so to say, compromised by any other category, just to be clear. Second, I think what you mentioned about the others undercutting. If you look at the last, say, even four, five years, in terms of our positioning and our pricing also, we are not by any yardstick playing on the price in this category. There is a reason, for example, despite this, we have a CAGR of more than 25% in the category, and we do not compete on price. We are on quality. We are known for quality products and also differentiated products in the marketplace. So, our entire approach in terms of positioning the product is very different from, say, our competition. You are right, there are 51 other guys who are in the market, and each one has a way of doing the thing. As far as we are concerned, we are here on a particular position category. Thank you, and best wishes. Thank you. Thank you. The next question comes from the line of Hitesh from Kosha Capital. Please go ahead. Hi, thank you. Am I audible? Yes. Great. Sir, congratulations on good numbers. My first question is on the non-glassware segment, where we have seen a 17% YoY growth despite this Diwali impact being there. Just wanted to understand how much of this growth is because of restocking of our insulated bottles, because I believe our channel inventory was quite low because we did not have the capacity. Now that the capacity has come on stream, is there an element of restocking which is there in these numbers? Okay. So, I would say that restocking would be only partly and minimal, to be frank, because we are yet to offer the entire portfolio as far as the vacuum bottles go. So, this growth is on, I would say, largely driven by the entire product on the non-glass products which are there. Okay. Good to know that. Second is two bookkeeping questions. One, how do we understand the benefit of power savings coming into the numbers? If you can probably share what percentage of our power requirements was met from captive sources last year? Which is about to get implemented from the last quarter onwards. There will be an additional INR 12 crores per annum. So, INR 30 crores. [inaudible] after phase four. Sure. This is Which will come under next year. Sure. This INR 30 crore and INR 12 crore delta that you are referring to is in relation to FY 2026 power costs? No. Out of basically INR 30 crores, till last year, what we had already implemented, that roughly INR 16 crore, INR 17 crore is already implemented till FY 2026. Got it. Incremental delta is INR 13 crores, and after the phase four- Additional INR 12 crores. Additional INR 12 crores from next year onwards. Okay, got it. Sure, thank you. On the expense, if you can give that number, Q2 versus last year, same quarter. So, on a quarter two, last year, we were about 5.3%. Sorry, this year we are about 5.3% on the sales. Last year, same quarter, we were about 7.2%. Sure, got it. Thank you so much. All the best. Thank you. The next question comes from the line of Bhavin Rupani from Investec. Please go ahead. Yeah, hi. Sir, first a bookkeeping question. INR 1.2 crores of government grant recorded in cash flow. What does it pertain to, and how should one understand sustainability of it? The INR 1.2 crores, I will take that question. This is Anand Sultania here. The INR 1.2 crores of government subsidy is on the CapEx that we had done previously, that is expansion of opalware furnace and your borosilicate glass furnace. The total amount of government incentives is roughly INR 55 crores. Out of that, INR 1.2 crores is what we have received, and the balance will be receiving in the subsequent years, every year. Are we booking any sort of revenue or government grants in our total income or total sales? This is not revenue in nature. This is capital subsidy. It will be reduced from your fixed assets. Fair enough. Okay. Sir, second question on gross margins. The gross margins, we have done a wonderful job over here, almost increasing by almost 500 bps year-on-year. Can you help us understand what factors have resulted in sharp rise in gross margins? Essentially, the price increase, what we spoke about earlier, across categories. In the Q1, like we all know, we had this LPG West Asia crisis. Whenever you take a price increase in any quarter, the actual realizations come in going forward. One is the price increases that we took across categories. Second is on the efficiency part that we spoke about. There was also on the costs that we worked upon. Third is that our own double-wall lines came into play in Hydra. All of these factors helped us to post better gross margins. Possible to quantify anywhere, sir? I mean, in what form? Product mix led to, let's say, 100 bps of increase, price hike led to 50 or 100 bps of increase. Very hard to do that, but I can broadly tell you, meaning, for example, in opalware, we had about 2.5%, 3%. Product mix also contributed, but to actually give a specific number, it is very hard to do that, sir. Got it. Okay, fine. Third question on working capital, sir. Working capital has increased by almost 20-25 days as compared to last year September. How should one understand that bump? Also, what is the normalized working capital one should expect going ahead? I think it is mostly coming in from building up of inventory, majorly on that account. Anand, you want to add to that? No, no. I think this is again the Diwali impact. Diwali impact. because I think the highest sales will happen in the month of October. I think we should look at the inventory levels more from March to March point of view. I think even September to September is not comparable. Secondly, I think that a lot of inventory has been built because of the regulatory challenges also, which will also come down eventually. Got it. Sir, next question is on input cost, gases. Gas prices have also increased in past two months. Have we taken any incremental price hikes, or do we plan to take any incremental price hikes going ahead in Q3? The price hikes we have already taken, considering the increase in the gas prices. Also, we have taken some measures in terms of shifting to propane also, knowing this is what is happening. So, that has also helped us. But it depends on how the situation evolves going forward. Currently, we have taken already the price increase which we had planned. Abhi main Sir, when was the last price increase that we had taken? After in Q2, starting in end of Q1. End of Q1. Okay. It covers up for the first part of increase or gas price increase that- Yes that had taken place, but- Yes. Okay. So, incremental gas price increase post August or September, still we are yet to decide on that. That is how one should understand? Yes, that is right. How the situation evolves. Got it. Sir, last question on guidance. Would you like to spell out any guidance on revenue growth, EBITDA margins, or CapEx for second half? I think we are actually seeing a good traction. The momentum is good for us. I think the kind of growth we are actually seeing now, we should be able to sustain, including the EBITDA margins what we are seeing now. I mean, that is all I can say as of now. Fair enough. Thank you so much, and all the best. Thank you. Thank you. The next question comes from the line of Akshat Mehta from Seven Rivers Holding. Please go ahead. Hello, sir. Am I audible? Yes, please. Sir, I just wanted to ask on the stainless steel facility, sir. Any particular reason that it has been delayed again, the third line coming in from end of Q4 to January instead? I couldn't hear this clearly at all. One second, sir. Yeah. It'll be better. I was just asking for any particular reason why the stainless steel facility coming in has been delayed by a month and a half? You are saying the third double-wall line of Hydra? Yeah. Yeah. Again, there are, I would say, supply chain challenges in terms of port congestion, et cetera, and the delay is about a month is what we are speaking about. Earlier it was December, now we are speaking about January, so about a month. Essentially it is coming from there. When should we see the full impact of this in-house manufacturing that have done to reflect in numbers in terms of revenue and margins? With the third double-wall line also getting operational, I think in Q4 onwards, end of Q4 onwards, we should be able to see some impact. Because by the time third double-wall comes, the stabilization and all may take a month or so. Okay. The margin that you have done this quarter, around 19% or so, do you find that sustainable going forward, not just for a couple of quarters, but next couple of years? So, as of now, like I said, both in terms of growth and the margins that we are seeing, we believe these are sustainable. Okay. You are still going to decide on another range of price hikes if the situation continues to be worse, right? Yes. I mean, yeah, in terms of, I mean, every day we know what is going on, and it actually is the geopolitical situation, the way it pans out. There are so many other factors, frankly. So, we are always looking at what is happening around and so many other things which go into it. Before that, then we incorporate that, and then only we will take a call. Sir, last question, sir. Can you help us give some on-ground trend or some kind of insight onto how the entire month of October has been for the business? Month of October, like I said, we saw very good traction. We had good momentum across our categories, including the Borosil glass cookware category, where someone mentioned about the softness of it. But October has been different, like I said, because the B2B here played a big role, and our typical gifting season took place. So it is not for any specific category. I would say that across our categories, we have been seeing good momentum. Okay, sir. Thank you. Thanks. Thank you. The next question comes from the line of Resha Mehta from GreenEdge Wealth. Please go ahead. Yeah. I hope I am audible. The first question is on the segmental revenue growth. The opalware segment has grown by 6%. Would it be fair to say that that is largely due to the price hikes taken? Because from a volume growth standpoint, volumes will come in Q3 because of the festive shift. It is not fair to say entirely on the price hike. There is some volume growth also there, and the mix also is playing a role here. I mean, in terms of our premium offerings, Premier and all, there has been a premiumization effort from our side in the opalware category. That has also led to giving us a good growth number in opal. What is the kind of price hikes that you have taken in opal? Different ranges across the range, 3%-5% in some categories and 5%-7% in some categories. That was effective at the start of quarter two? Yes, it was at quarter two. The growth in the non-glassware, I am not sure if I missed it, but again, over here, would the large part of the growth be driven by the bottle segment because our capacities came on stream? Or is it that appliances have also contributed meaningfully to this 17% kind of YoY growth? I would say no, it is not because of bottles per se, but both our, again, across categories, whether it was stainless steel, cookware, and appliances, all of these we had very good traction in the entire quarter. In Q2, the growth we are talking about is quite broad-based for us. Got it. Even on the gross margin side, typically, as a pattern, one would tend to see that Q2 gross margins are lower than the Q1 gross margins sequentially. Right. Right? What is the kind of product mix change or what basically drives this gross margin divergence in the first half? Premiumization across categories, even in our appliances, whether it is a Vita range or it is the hand blenders or even in the cookware segment, we have categories which the mix has been good for us, apart from the price increase which happened. All of this did contribute towards it. Of course, in terms of our manufacturing now playing a major role, I mean, if you notice in the last two, three years, our manufacturing footprint has gone up. That has also played a significant role in the margins that we are seeing today. No, sorry. My question was not on why gross margins have risen YoY, right? I think that you have explained to one of the previous participants. My question is why, typically, Q2 gross margins, and if I see this as a pattern over the last several quarters, right, Q2 gross margins are lower than the Q1 gross margins. I am assuming there is some maybe product mix change impact or something. If you can kind of talk about it. That is what I mentioned. That is why I mentioned the product mix, whether it is appliances or even the stainless steel category. Premiumization is happening across the categories, which has helped us to get better Q2 margins compared to earlier Q2 years. My- I think the question is why Q2 margins come down, gross margins come down. That is the question. Yeah, yeah. Correct. That is the question. I think the answer to that is product mix, which is, I think, better to look at it at the end of Q3. Correct. Lastly, just on the momentum that you all have been seeing in October in build-up to the festive season, if you can just share some qualitative thoughts there, would be great. Thank you. Sorry, I didn't get that qualitative thoughts in terms of momentum, meaning it's specific to any channel? Qualitative remarks that you all are seeing in October revenues as a build-up to the festive. Again, like I mentioned, our momentum has been broad-based across categories, and it's not specific to any channel. The good part we are seeing is that whether it is trade or B2B, and I would say trade and B2B both have done pretty well for us. The momentum is pretty strong, followed by e-com and followed by LFS. We are also seeing, like I said, acceptance of the products that we had positioned, premium products that we had put in the market. Those got good acceptance. That's one thing, again, we are seeing. New products that we have launched have done well. Premier has done well for us. In terms of cookware category, we have done well. Glassware category also, like I said, unlike the soft thing which somebody mentioned about Q1, in glassware also we've done well. So I think across categories and across channels, we are seeing good momentum. Sure. Thank you. All the best. Thanks. Thank you. The next question comes from the line of Rikeel from Capri Family Office. Please go ahead. Hi, sir. Thank you so much for the opportunity. I have a question firstly on the comment you made regarding the DGTR notification, that as and when the government notifies this, a duty could be applied for the next five years. Could you help us understand what time you expect this to sort of take place? And if and when that happens, what is the implication for us and the key financial impact that it would have whenever this takes place? Sure. Like I mentioned, this is now pending with the Ministry of Finance to take a call on this once the DGTR has recommended. If you are asking the actual impact in terms of the percentage or the, what do you call, value in terms of it, maybe Anand, you can share how much would be the duty, if that is the question. I think what you have asked is basically what is the timeline. I think Ministry of Finance has about 90 days from the date of issuance of the final findings to issue the final notification. We have time till December 24th. Yeah. The related question to that was, Anand, that if at all it gets implemented, what kind of financial implication it means for us? No, there is no financial implication in any improved margins. The implication is only in reduction in inventory. We have built up a lot of inventory in the last few months and years because of the dumping from China. That inventory should reduce, and we should be able to sell more of our inventory than what we have or more of our production. That is all. We are not going to be increasing pricing or anything like that. That is where you are. Okay. So, broadly, the benefit could be an improvement in growth rate for the company as potential competition from China goes down. That's the- That's right. point, right? That's right. Secondly, in the presentation, you have at quite a few points mentioned regarding the growth not comparable because of the festive season shift. If you could sort of, let's say, if we put together Q2 and Q3, because then there would be more likely comparison including the festive period, because this quarter growth looks lower optically because of the festive shift. Is it fair to say that you would otherwise see a 15% + growth if you include the two periods together? I don't think we can give that number because then you can calculate the Q3 numbers, which is not appropriate. We have given a long-term target of 15%-20% CAGR, which we stick to. Okay. Fair point. Just last question is on the margin rate. At the number where we are today in terms of margin, what could be the two, three factors that could, from whatever initiatives that you have mentioned or that would transpire going forward, factors that could help improve the margins, or you do not expect any further improvement from here on? I think the things already mentioned, what we mentioned, in terms of already what we are seeing here. Now, the thing is to be, first would be to sustain these margins and post growth, in terms of both volume and value. That's what we are looking at. I would say that is where it is as of now. Got it. That is very useful. Thank you so much. Thanks. Thank you. The next question comes from the line of Resham Jain from VVD Asset Managers. Please go ahead. Hi. Good afternoon. Congratulations on a good show. I have three questions. The first one is, which Anand also mentioned about inventory. I think last two, three years, inventory has been slightly on a higher side because of BIS and, as you mentioned just now, because of glassware as well. On an absolute terms, let's say in next six months, one year, how much absolute inventory can come down? Because growth trend is not a challenge. You have been growing quite well over the last four, five years. It is more to do with working capital, which is depressing your overall return ratios. You are looking at a number, I mean, a specific number in terms of inventory coming down? No, just to understand your thought process. Obviously, absolute number, if you do not want to share, how much it can come down and how much excess it is right now, whichever way. I will share with you in terms, basically, like you mentioned, when we started both in terms of opalware and glassware, the plants, like we had set up for 7,500 metric tons, but the market itself was only 2,000 metric tons. All the inventory that we see today, most of it is coming from the inventory which was produced year one, year two kind of a thing. Second, the BIS challenges that we had. To mitigate those challenges, those were the kind of things which led to the inventory buildup. Third thing was, of course, the Hydra, where again, we had a challenge. Essentially, our inventory is coming from these factors. Now, over the years, the kind of effort we have made to build glass, the adoption of glass, and to promote opalware. We do not have much of a challenge on these now, and the other challenge is what we had of BIS. By putting up our own Hydra manufacturing facility, to some extent, we have been able to mitigate this. One thing what we can share is that our focus now is to build the market in the sense that the product that we are doing here, manufacturing here, is what will lead to the lowering of inventory. Like I said, once the margins are now, we are sustaining, we push for volumes, growth, and in all the categories, so that the inventory is brought down to the levels that we also wish it to come down. But very hard to give you a number right now, that okay, this is what will eventually come to. Okay. Okay, got it. The second part is on Hydra. What is the current utilization level? Because you were already selling traded products earlier. It is just basically refilling the channel with the new plant. Yeah. How fast you are able to utilize the current plant? We already utilized more than 80% of the capacity as on date for both the double-wall lines. Capacity utilization is not a challenge in Hydra because, like you mentioned, we were already selling these items. The challenge is how to develop the range and give the designs and the assorted portfolio. Once we have the third double-wall line, we will then start building that also. So capacity utilization is not a challenge at all as far as Hydra is concerned. Have you restored your past level of Hydra sales with these two lines, or it is yet to happen? We are on track to reach there. Okay, got it. In terms of CapEx, I think last two, three years, you have been doing multiple CapExes, starting from glassware, solar, Hydra. Are there any new CapEx being planned over the next one or two years? The major CapEx that is already, like I mentioned, is in our capacity expansion of BG3, the borosilicate glassware one, which is a INR 50 crore capacity expansion there. That is a major one coming up. Apart from that, Anand, if there is anything major or to that extent, I do not think so. No, there is about another INR 37 crore which will go into solar phase four. Rest is routine CapEx of your furnaces rebuild. Okay, got it. Are there any new categories which you are scaling up? Because online, I could see within the appliances, there are several categories which are becoming quite large, including cookware and some of those categories. Any comments? We have a Vision 2030 plan, which we will be kind of announcing by the end of this financial year. That will require some reasonable CapEx, but we will share that in due course over the next quarter or two, once it has board approval. Okay, great. Thank you, and all the best to the whole team. Thank you. Thank you. Ladies and gentlemen, we will take this as the last question for today. I now hand over to management for closing comments. Over to you, sir. Thank you, everyone, for all your questions and all your support. Wishing you all a very happy Diwali, and look forward to meeting you all in the next call. Thank you. Thank you. On behalf of ICICI Securities Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.