Good evening, ladies and gentlemen. It is my privilege to welcome you to this earnings call of Sanathan Textiles Limited for the Q2 of FY 2024 to 2025. I am Jude D'Souza, the Company Secretary and Compliance Officer, entrusted with overseeing investor relations. I will be your moderator for today's session as we delve into the business and financial performance of the company. Please note, all the participants will have their video disabled and audio unmuted during the call. The participants asking questions will only be requested to have his or her audio unmuted. For the management commentary, the company will open for a Q&A session. Interested participants may click on the raise hand icon at the center bottom of the pane on Webex application to join the Q&A. The participants may click this option during the management commentary itself to ensure they find a place in the queue. Upon announcement of their name, the participant will be requested to unmute by the host. The participant must unmute by clicking on the Unmute Me button so that the participant can ask the question. Before we proceed, I would like to bring to your attention that certain statements made during this discussion may constitute forward-looking statements. These statements are based on our current expectations, assumptions, and beliefs regarding future developments and are inherently subject to various risks, uncertainties, and factors beyond our control. Such forward-looking statements involve both known and unknown risks, and we advise you to interpret them with caution. Now, it is my honor to introduce the esteemed members of our management team who are present with us today. We have Mr. Paresh Dattani, the Chairman and Managing Director. We have Mr. Sammir Dattani, the Director, and Mr. Sanjay Shah, the Chief Financial Officer. Kindly note that this conference is being recorded, and the recording will be made available on our website accompanied by a full transcript for future reference. Without further ado, I now invite Mr. Paresh Dattani, our Chairman and Managing Director, to share his insights and address the esteemed participants. Hi, good evening, everyone, and thank you for joining us today. It's my pleasure to welcome all our stakeholders, analysts, and investors to our maiden conference call. Today, we will walk you through the remarkable journey of Sanathan Textiles Limited, provide an overview of our business, and share insights into the visions of our future. The company was incorporated in 2005, marking the beginning of our journey into the textile industry. We took over the business of manufacturing from Sanathan Texturisers with a vision to become a lead player in the textile industry. Today, we stand among the few companies in India with a presence across the polyester, cotton, and technical textile segments, enabling us to serve a diverse range of industries and customer needs. Through our state-of-the-art, fully integrated yarn manufacturing facility in Silvassa, having a total installed manufacturing capacity of 223,750 metric tons per annum, we manufacture a huge variety of yarn products catering to a broad spectrum of applications. The expertise of our promoters, who bring over three decades of experience in the industry, has been instrumental in driving our strategic vision and operational excellence. From humble beginnings, we have achieved significant milestones. Starting with a capacity of 1,500 metric tons of cotton yarn and about 13,500 metric tons of polyester filament yarns, we have grown exponentially, reaching 14,000 tons of cotton yarn and about 2,000 metric tons of polyester filament yarn by 2024. In parallel, we expanded our product portfolio with value-added products catering to industrial and technical textiles, scaling capacity from 5,400 tons to 9,000 metric tons per annum. Our success is further reflected in the long-standing relationships we have built with some of India's top consumer brands as Welspun India, Page Industries, D'Decor Home Fabrics, Wildcraft India, and SRF Limited, etc. Supported by an extensive network of over 20,000 customers and 900 distributors spanning India and 2026 export destinations, we have earned the prestigious designation of a three-star export house. Sustainability is at the heart of our operations. We are committed to eco-friendly practices, efficient resource utilization, and waste reduction, ensuring alignment with global environmental standards. Through continuous investment in research and development, we innovate to deliver yarns that meet customer needs with unique colors, properties, and characteristics. As we look forward, we are poised for an exciting future. We are today in the advanced stages of commissioning our new polyester filament yarn manufacturing facility in Wazirabad, Punjab, under our wholly-owned subsidiary, Sanathan Polycot Private Limited. This facility is set to increase our total manufacturing capacity from 550 tons a day to 1,500 tons per day. The construction for the said project commenced in 2023, and the first phase is expected to be operational in the Q1 of 2025 to 2026. At our Silvassa facility, we have recently commenced cotton yarn operations at Unit 3 with an installed capacity of 540 metric tons per annum. By FY 2026, we plan to begin operations at Unit 4, which will further add an additional 10,900 metric tons per annum. Thank you very much, and I now ask Sammir to run you through the business and operations of the company. Thank you. Thank you, Paresh Uncle, and good evening to everyone. Thank you for being here. I will first go through the business and industry overview and then talk about the current business at Sanathan Textiles. India's textile industry is one of the largest in the world, contributing to 2.3% of the country's GDP and about 12% to our exports. India is the second largest producer of textiles, and the sector is projected to grow at a 10% CAGR over the next decade. All this is being aided by government incentives such as the PLI scheme, which focuses on boosting manmade fibers and technical textiles. Additionally, we have the PM MITRA Parks scheme, which is providing investment in infrastructure for mega textile hubs for global competitiveness. India's textile market is experiencing strong demand growth driven by domestic consumption, exports, and global situations. The global apparel market is set to grow at a CAGR of 8%, while India's textile market is projected to grow at a CAGR of 8.8% in the coming years. The technical textile segment is a key growth driver in the coming years, expected to expand rapidly, supported by rising awareness, higher disposable incomes, new end-use and applications for textiles. Additionally, all this will require new and additional manmade fibers and yarns, along with, of course, cotton yarns and blended yarns. The government has a keen focus on exports of textiles, modernization of facilities, sustainability in terms of operations, and making sure that India becomes a key global hub for textile in the coming years. Talking about Sanathan, our business at Sanathan Textiles is divided into three separate yarn business verticals consisting of polyester filament yarns, cotton yarns, and yarns for technical textile and industrial applications. Our polyester yarn manufacturing capacity is about 2,000,000 tons per annum. We have a fully integrated polyester division where we process petrochemicals as our input to produce a large, diverse range of polyester filament yarns. Our polymerization setup, featuring three lusters, enables flexibility to meet diverse customer and different industry and segment requirements. We focus and specialize in BornDyed colored yarns, functional yarns, performance yarns, made-to-order, customized yarns, and other value-added yarn products. This polyester division offers a wide range of products across different polyester filament yarns, such as POY partially oriented yarn, FDY fully drawn yarn, DTY draw textured yarn, air textured yarn, and twisted yarns. A range of cotton yarns are used for making apparel, suiting, shirting, bed sheets, home textile, and other end-use and application. We have a strong focus on fine-count compact yarns, and we ensure superior quality and performance. By sourcing premium raw cotton from India, we meticulously spin our yarn to perfection. Our division for yarn for technical textiles is a specialized segment with diverse and interesting applications ranging from construction, agriculture, sportswear, safety, and other applications such as. The growing adoption of technical textiles is rapidly increasing in India, and these kinds of technical textile yarns and products made from these yarns are being used in health and safety industries, being used to make construction cost-effective, used for its durable properties, and lightweight properties. A little bit about our manufacturing facility. Our current facility is a fully integrated yarn facility in Silvassa, strategically located. It has an installed capacity of 223,000 tons across all three yarn verticals. Our new capacity is expected to commission in Punjab, as Paresh mentioned, in the coming financial year, where we will be more than doubling our polyester yarn manufacturing capacity. While we manufacture products across all three segments, polyester remains our primary focus and the key contributor to our revenue. Now, I'd like to hand over the call to Mr. Sanjay Shah, our CFO, who will take you over the financial performance of the company. Thank you, Sammir. For the quarter ended 30 September, 2024, our revenue from operations stood at INR 742.17 crores, as against INR 745.61 crores in Q2 FY 2024, on account of marginal declines in sales volume by 1.92%. EBITDA for the quarter is INR 58.22 crores, as against INR 51.84 crores in Q2 FY 2024, on account of relatively better gross margins. PAT stood at INR 32.56 crores, against PAT of INR 30.24 crore in Q2 FY 2024. For the half-year ended 30 September, 2024, our revenues from operations stood at INR 1523.30 crores, as against INR 1420.96 crores in H1 FY 2024, led by a higher sales volume of 6.77%. EBITDA for H1 2025 stood at INR 136.70 crores, as against INR 84.670 crores in H1 FY 2024, on account of higher volumes, better margins, as well as lower operating expenses. H1 FY 2025 PAT stood at INR 82.63 crores, against PAT of INR 47.34 crores in H1 FY 2024. Thank you all. You can now take questions. Yeah. Thank you for the management commentary. The first question is from Harsh Mittal from ICICI Securities. Mr. Harsh, you can unmute yourself and ask your question. Thank you. Hi. Am I audible now? Yes, you are. Yes, you are. Good evening, sir. Thank you for this opportunity. I have a few questions. The first question is, how is the realization panned out in Q2 versus Q1 FY 2025 on the POY realization? Good evening, Harsh. Yes, sir. The Q2, I would give you the overall number on Q2 FY 2025 compared to Q1 FY 2025, if that's your requirement. Is that correct? Do I understand you correctly? Yes, sir. Yes, sir. Yeah. So I think one second. Sanjay Bhai will give you the numbers, and then I will discuss that with you. Yeah. See, the polyester realization was slightly down in the current quarter as compared to the previous quarter. It got reduced by approximately INR 100. Okay. So, sir, do we see any further dip in the realization in the current 3Q, which just recently ended? No. See, Q2, our revenue was more or less similar, but the EBITDA numbers were slightly lower because of volatility in the raw material pricing. But having said that, we need to focus on an annualized basis because, Harsh, as you must have seen in the past also, that quarter to quarter, we do have drops of up to 1% to 2% on margins, but we must look at it on an annualized basis. And this year, FY 2025, we aim to end the year at a top line of about INR 3,000 to 3,100 crores with an EBITDA margin of about 9%. Sure, sir. Sure. My second question is, sir, what is the cumulative CapEx which we have done for the Wazirabad Chandigarh plant till date? As of 31 December, we have done a CapEx of INR 1,450 crores already. Out of that, we have drawn about close to INR 1,000 crores from our debt and balance from our contribution on that. Okay. So my final question is that the staff, the employee expenses have increased by 9% sequentially in Q2. So is it safe to assume the same run rate for the Silvassa unit going ahead, that is 2026 crores? Yes. Okay. Okay. Thank you. Thank you. These were my questions. Thank you. Thank you, Harsh. The next line of question is from Ms. Garvita Jain from Seven Islands PMS. Hello. Yeah. Hi, Gavita. Hi, sir. So I have a few questions. First of all, sir, if you could please give me some guidance on by when we can buy exactly which quarter we can expect the commissioning of or the operations of the Punjab plant, which we have? Garvita, we aim at the moment as we stand now, and we aim to commission this in the Q1 of the financial year 2026, and we will start somewhere sometime end April, beginning May, and we will be fully stabilized by the end of the quarter. Okay, and sir, at what capacity we will be starting it with? What would be the capacity utilization we are expecting with the beginning of the operations? Yeah. See, we have our entire capacity is mapped to about 900-odd tons at the peak levels. We are doing that in two phases. In the first phase, we are doing about 700 tons per day. And the second phase will be adding another 250 tons a day. So we are at the moment talking about the first phase of operations. Out of the 700 tons, we will be starting with a capacity of about 400-odd tons initially. And by the end of the quarter, we would have ramped up to the entire 700 tons per day. Okay. And sir, also, if you could give me some guidance on the prices of the raw material and the prices of the actual product, synthetic yarn and the cotton yarn also. I just need guidance on the price. See, as we stand now currently, let me tell you segment-wise, cotton yarns, our cotton today, what we are buying is close to about INR 54,000 a candy, which is about 355 kilos. So including our deductions for the waste, etc., we get a clean cotton of about INR 178 to INR 180. We have an average realization of about INR 320 as of today. 320 is the average realization. Yes. Our average count rate is about 57. On the filament yarn side, our raw material cost today, the entire PTA MEG with the additives comes to about INR 73 and some paise, and we are doing an average run rate of about INR 39 value addition. That's about INR 112 to INR 113. That's for PTA. This is without the GST. That's PTA, right? Yeah. The PTA MEG cost is about INR 73.50 paise. Okay. Okay, sir. And sir, also, if you could give me the guidance on the actual current market prices for cotton yarn and synthetic yarn. Can you please repeat that? I lost you. Sir, I'm asking if you could give me guidance on the current market price for cotton yarn and synthetic yarn? Yeah. So the current market price of cotton yarn on our count range, averagely what we produce, 57 count, we are doing about INR 320. Okay. On the filament yarn side, we are doing an average of about INR 113. INR 113. Yes. Sir, since currently synthetic yarn is cost lower than the cotton yarn, sir, I wanted to understand the price parity between the two. By what price of synthetic yarn can we expect people to switch from a synthetic to cotton yarn? Am I clear? Can you make some sense out of this? To be very honest with you, I mean, there is a lot of variations that would go on to that. But on a thumb rule basis, INR 150 on a filament yarn would equal to about INR 30 on the cotton yarn side. So the INR 30 price is today in the range of about INR 250 to INR 260, whereas the filament yarn is, say, about INR 110 to INR 112, INR 108 to INR 115 to INR 120. That's the differential. Having said that, I would just like to point out my experience on this that though we talk about fiber shift, it really doesn't move more than 5% across the board. I have never seen that happen. Okay. So at max, we can expect 5% movement, right? That's right. That's right. Sir, could you tell me, do we have excess capacity of synthetic yarn manufacturers in India at the moment, or what's the case with that? As we stand now, the industry is operating at an operating rate of about 83% to 84%, which is, in actual sense, almost peak operating rates. Because when we talk about the 100%, we are talking about setup facilities. Some of them are defunct today, not in a position to operate. So when we operate at about 83% to 84%, we are relatively close to 100% operations. Okay. Operations. Okay. Got it. And sir, if I talk about in terms of manufacturing of the two types of yarns, which one is more cost-effective? No. Can I please ask you what you mean by cost-effective? I'm asking, sir, that out of the cotton yarn and synthetic yarn, the manufacturing process of which of the two is more cost-effective, as in which one has more margin contribution? I would like to answer you this sort of thing because we have been doing this for a lot many years. And across years, we have seen the purpose of Sanathan getting into three verticals is just to mitigate this because there have been times when cotton has paid better. There have been times when filament yarn has paid better. But just to average that out, we have ventured into the three segments. But having said that, I would just like to point out that over the years, we have seen, if you look at an average three to five years, our experience says that cotton yarn has given us an EBITDA close to about 19% to 20%. And filament yarn gives us between 9% to 10%. But cotton yarn has an asset turnover of one, and the filament yarn has an asset turnover of about 2.1% to 2.2%. Okay. Okay. Got it. I have one more question, sir. I wanted to understand this thing that when I was going through the prospectus which you have submitted, it says that most of the raw material which we source from, they are located on the western region of the country. But we are setting up our plant in Punjab location. So will that involve additional cost for the acquisition of the raw material or the transportation cost? You're very right. Most of our raw material of PTA MEG is all located on the western side of the country. But to give you a different perspective to this, we as a country today are producing almost 4.2 million tons of filament yarn, which is all also produced on the western part of the country. And about one million is consumed in the northern markets. There are five principal markets up in the north, which is Ludhiana, Amritsar, Panipat, Delhi, and NCR. Okay. Almost 1 million tons out of this 4.2 million tons is consumed in the north. There is no supplier there. Everything goes from the western side of the country to the north. Okay. Barring this, as far as our raw material is concerned, we have a source in the north at Panipat where PTA MEG is available from one of the manufacturers. Okay. So for the. We will source our raw material from the Panipat refinery, and we will be selling our finished goods also in the north in the same ecosystem. This entire system is within a radius of 150 km. 150 km. So the production which we will be doing from that unit will serve the market in north only. Yes. Because. There won't be much movement, right? Yes. No. There will be no movement to any other market for a simple reason that what we are setting up there is hardly 25% to 30% of the market which is already consuming there. I am not factoring any growth in that. We are just setting up 2025% of what is already consumed there. Sir, could you give me guidance on what is the expected sales growth we can expect in the coming year for us? Yes. For FY 2026, we aim to achieve a top line of between 5,200 to 5,500. FY 2026 top line? FY 2026. Because. 5,200. Of the new plant, we will not get a full impact of that because it will take us one quarter to ramp up everything. So we will get about the company top line will be between INR 5,200 to 5,500 crores. Okay. And with the EBITDA margin of? We are aiming to achieve an EBITDA margin of between 10% to 11%. 10% to 11%. Okay. And sir, do you have the sales to COGS ratio with you for this? Okay. I can do it later. That's fine. And one last question, sir. If there are any price fluctuation in the raw material cost, are we able to manage to pass on the pricing pressure to the customers or to the final product users? Yes. We always aim to pass on either way, if it goes up or down, to pass it on to the customer. Of course, there are times where there are certain lag times there. Maybe you might have a lag of 15 days to a month between the passing on either way. Okay. 15 to 20 days lag. Yeah. Sir, are we going to maintain the inventory as high as they are currently? No. Inventory of the raw materials or? Yes. Of the raw materials. See, inventory of the raw materials currently may look a little bit high. It is not. It is as per the industry norms and standards. But having said that, we are also today importing about 50% of our raw material, which the transit time is about 30 days, 25 to 30 days. So the inventory level looks higher. But going forward, we are in the country having two PTA plants being commissioned in the calendar year 2025. One is the GAIL plant at Mangalore. One is the Indian Oil plant at Paradeep. With these two plants, each with a capacity of 1.2 million tons, we will be adding about 2.4 million tons of PTA in the country. Today, as we stand, we import as a country about 1.6 to 1.7 million tons. So we will be excess in PTA. For us, as far as the Punjab facility goes, we are not going to maintain any extra raw material because our raw material will be coming from a local source. Okay. Thank you, sir, for that. Ms. Garvita, I have a long queue. Yeah. That's right. Thank you so much. Thank you, Garvita. Sir, the next question is from Mr. Ashutosh Somani from JM Financial. Yeah. Am I audible? Yes. Yes. Absolutely. Yes. Good evening. Yeah. Good evening. Thanks for the opportunity, sir. So sir, my first question was regarding the CapEx. So polyester plant, you'd mentioned INR 1,450 crores CapEx we have already done, right? That's right. Yeah. So what would be the potential CapEx, the entire CapEx that we will be requiring for the polyester plant? Yeah. We plan the project. We aim to complete this in about INR 1,800 and odd crores for the entire CapEx on the first phase. Now, in here, I would also like to inform you one thing that we are setting up. We have got the land, the infrastructure, the building, the power, the polymerization, the automation, the warehousing, everything for the peak capacity of 950 tons. But we are at the first level setting up 700 tons. And we will be adding in the second phase 250 tons where the asset turn will be very high because everything else is already set up. Yeah. Understood. So this INR 1,800 crores constitutes both phase one and phase two? No. That is only phase one. Phase two, we will have to add another INR 250 crores. Okay. Understood. And what would be the CapEx for the cotton yarn expansion plant? The cotton yarn expansion will be about close to INR 400 crores. 400 crores across both the unit phases? That's right. Okay. And how much have we incurred anything as of now? No. Nothing substantial. We paid some advances for some equipment, but nothing substantial. Yeah. Understood. Sir, and my second question is regarding the margin guidance you gave. So we are effectively doubling the polyester. Yeah. More than doubling the polyester capacity. But polyester margins are 9% to 10%, literally half of the cotton yarn. So will it? Yes. But the asset turnover, Ashutosh, is more than double also. Okay. So we expect the margins to impact. And third question is, sir, regarding the technical textile segment. In their initial overview, you were very positive about this segment, technical textile growing. But there is no capacity expansion plan for us. So what are our plans for this technical textile? Yeah. We have already moved ahead, and we have already booked some equipment. We are doubling our technical textile capacity also, which today currently stands at 9,000 metric tons per annum. We will be setting up another 9,000 metric tons per annum in Punjab. Okay. By when will it be set up? I beg your pardon? Sorry. I didn't get that. Yeah. I lost you. Sorry. By when will that additional capacity come up? Yeah. That additional capacity will come up in the last quarter, 2025. So we will be doubling that? 2025, last quarter. 2025, last quarter. Okay. Understood. So the capacity in FY 2025 for textile would move from 9,000 to 18,000. Is that correct? Double? Yes. It will move from 9,000 to 18,000 metric tons per annum. Okay. And, sir, what would be the CapEx for it and asset turns, if you could just tell? We have already booked the equipment under the current CapEx also. Only the balance work will be done, which will not be a very substantial portion of it. Okay. Understood. Sir, and last question, could you just tell the EBITDA mix of in this quarter, we did around INR 60-odd crores of EBITDA. How? Yeah. So as I said, we were just answering the lady earlier that we will end the year in a top line of about INR 3,000 to INR 3,100 crores. And we will aim to do an EBITDA of 9 plus on that 3,000. My question was not that. Out of the INR 60 crores of EBITDA, the breakup, what percentage of the total EBITDA would be contributed by polyester, cotton, and textile? You know, we have a lot of common facilities and a common usage. So it would be very difficult to really break that up. That's why I answered in that way that normally we do about 9% to 10% on the filament yarn side, about 18% to 20% on the cotton yarn side, and about 13% to 15% on the yarn for technical textiles. So that gives us an average EBITDA, which we aim for the next year to do about 10% to 11% at a company level on a top line of INR 5,200 to INR 5,500 crores. Sir, could you provide advanced textile growth rate that you are seeing on the ground based on your expectation for next two to three years, maybe? The so-called pundits and the agencies are projecting about 6% to 8% growth over the coming years on that. Okay. Because we earlier have grown this segment by 10%, I think. The textile segment. Yeah. It's the entire textile segment, yes. Okay. So no. What I mean is the industrial and textile segment for the Sanathan Textiles revenue growth has been 11% and 19% for the last two years. You're talking about the yarn for technical textiles? Yarn for technical textiles. Yarn for Technical Textiles, what the agencies have reported, they're expecting to grow at a CAGR of about 13% to 15%. We expect to grow by that rate or anything? Yeah. So that's why we are doubling our capacity. And plus, we want to serve our northern-based customers from the Punjab facility there also. Okay. Understood, and any impact of imports from polyester yarn pricing pressure, anything that you are? No. No substantial imports are there on the filament yarn side from anywhere in the. Yeah. Understood, sir. Thanks a lot. Thank you. Thank you, Ashutosh. The next line of question is from Saransh Gupta from Swan Investments. Mr. Saransh Gupta. Okay. We move to the next participant. The next question is from Mr. Devang Doshi. Hello. Sir, good evening. Yeah. Hi. Good evening. Am I audible? Yeah. You're audible, Devang. Yes. You're audible, sir. Sir, as you said, 50% of our raw material has been imported. I mean, we have been importing it. So from which country are we importing? And will the tariff war affect our working? So far, whatever we have been importing on the PTA front has been from countries like Taiwan, Korea, and Thailand. And there is no tariff war as far as these countries are concerned. But as I said earlier, going forward, our imports will be down to a minuscule level on the PTA because of the two plants that are commissioning in the country in the calendar year 2025. And also, for our Punjab facility, we will be sourcing from the local Panipat supplier. Okay. Okay. Thank you so much. The next question is from Mr. Rahul Shah from Crown Capital. Hello. Hi, Rahul. Good evening. Yes. Hi, sir. Good evening. Sir, firstly, you mentioned your aim and your targets for FY 2025 and FY 2026. So to just revisit that point, the FY 2025 guidance or outlook suggests a very meager growth of 5% or so, right? And it's a substantial jump in FY 2026. So what will drive this? And why was this year on a very, you can say, a very? Yeah. Rahul, I will explain this to you. When you see FY 2025, the top line of 3,000 to 3,100, there's a meager growth because we have not really added any capacity this year. What we are adding is going forward. What we are adding is going forward. So next year, I mean, when we commission this facility at Punjab in the Q1, as I said earlier, we will start with a capacity of about 400 odd tons a day and ramp it up to 700 tons in the first phase. So this will give us the additional capacity. And we will have a top line. We aim to have a top line of about INR 5,200 to INR 5,500 crores FY 2026. At the moment, our capacity, what we have, we are fully sweating and utilizing the asset. Okay, so when this entire capacity comes on board, the new one, the Punjab facility, so when you start with 400 tons a day, that will translate into the revenue targets you've mentioned, or it's at peak capacity? No. The peak capacity will be different because first year, we will just about get about 70% to 75% of the capacity because we will be ramping up from April to June. So we'll expect to get about 70% to 75%. That's why I said INR 5,200 to INR 5,500. Having said that, at peak capacity, when we finish the first phase of our expansion, we will be at about 6,200 crore on a company-level top line. When we finish the second phase of the expansion, we will be at INR 7,700 crore top line. I hope I'm clear to you, Rahul. Rahul? Mr. Rahul? Rahul? Am I clear? Am I audible? Yeah. Yeah. Did you hear me or no? Yes. I was already speaking. I think my mic was not functioning. All right. All right. Sorry. We couldn't hear you. Go ahead. Yeah. No problem. So I'm speaking on the margins now, which you expect to go back to the double-digit levels starting from next financial year. So again, yeah. So I think in financial year 2022, you did 17% or so. So was the pricing a lot in our favor back then? And what are expectations going forward? Can you just repeat that because I lost you for a moment? Back in FY 2022, you did 17% or so, I believe, right? That's right. With the margins? Yeah. So back then, was the raw material pricing a lot in our favor? And what has changed now? And how will it be going forward? I would like to point out here that FY 2022, we did 17% EBITDA margins. You're very right on that. That was the effect of the post-COVID pent-up demand, which was there, which most industries also experienced like us. We never look at that as the realistic margin that we aim and actually can deliver. Post that, the margin so if you look at 2021, 2022, we did 16% and 17%. And then 2023 and 2024, when the wars broke out and the geopolitical situation across the globe got bad, we dropped down to about close to 7 point some% to 8%. So that's why we always say we always look at ourselves on a three-year, five-year, seven-year basis. If you look back, we have done about 10.5% to 11% over a three, five, and seven-year period. So those are the steady-state margins one can expect in your business? Yeah. Of course, with the Punjab coming in, there will be an additional impact of margins further because of certain factors like we are closer to the market, closer to the raw materials. We have some manufacturing advantages also up there. So that will further add to our EBITDA margins going forward. Right. Okay. And lastly, in the opening remarks, you had mentioned that the sector is projected to grow at 10% CAGR, correct, for the next decade or so? Now, that's the Indian textile sector or the global? The Indian textile sector, overall, is expected to, as per the rating agencies, grow at about 10% over the next couple of years. Right. So putting aside the FY 2026 jump because of the new capacity, from there on, you can easily beat this industry CAGR in terms of top-line growth? I didn't follow that question. Can you please come again, Rahul? So going forward, after FY 2026, right, when all your capacities are in place, do you think you can easily beat this industry 10% CAGR from there on? Oh, yes. There's no doubt on that. There's no doubt on that. Okay. Perfect, sir. Thank you so much, and all the best to you. Thank you. Thank you, Rahul. Thank you, Rahul. The next question, sir, is from Mr. Saransh Gupta. He's asking he wants to understand what gives us the confidence of 9% EBITDA for FY 2025 on a top line of INR 3,000. And as of half year of 2025, we have achieved an EBITDA of INR 134 crores. Does this mean there is an upside in the realization? Or what can be the reason for the 9% EBITDA? The reason for that is that we have, as I mentioned, that quarter two, there was volatility in the raw material, which has now stabilized and moving up. So already, the margin spreads have improved, and we expect them to be normally like we did in the Q1 also, which was north of 9%. So we will definitely end up at 9% EBITDA on a top line of INR 3,000 to 3,100 crores. The next line of question is from Mr. Suhrid from Paladin Capital. I am unmuting you, sir. Hi. Can you hear me? Yeah. We can hear you. Hi. Good evening. Good evening. I had my first question is, what is the approximate split of sales today? Among the three segments? Yes. As we stand today on this top line of INR 3,000 to INR 3,100 crores, we will have about 77% of our revenue coming in from the filament yarn business, about 18% revenue coming in from the cotton yarn business, and about 5% coming in for the yarn for technical textiles. Okay. So about INR 2,500 crores is coming from the polyester yarn business. Out of this INR 2,500 crores, how much would currently be going to the north market? On a daily basis, what we are adding 700 tons per day over there in the first phase. We are today selling at about 3%, which is about 150 tons a day. 30%, sorry. You are currently selling 30%? Of our current production, we are selling to the north market. Okay, so out of 2,500, about 800 crores is going. 800 and odd crores is coming from the north market. So once. But I would just like to point out here that what I mentioned earlier, that it's already a 1-million-ton consuming market per year. And what we are setting up in Punjab is just 2025% of that, what is already being consumed without factoring in any growth on that. Yes. Sure. So just a few adjacent questions. If this 30% were to go from the north market, would it be easy for your Daman or the Silvassa plant to replace that by selling that 30% to other parts of the country? Yes. We already have a plan made for that, 150 tons a day. We always have because what we are setting up is only 2025% of what is already consumed there. The balance will still be going from Silvassa. So if it is better net back, we keep supplying that. If not, we place that in the growing western and southern markets of India or also have the options to sell that in the export market. So we will do all our exports from our Silvassa facility being closer to the port. Similarly, then the competitors who are currently supplying the North market, they will also feel that loss of market share. Could there be a situation where there is excess supply in the West and prices and margins therefore get compressed? Let me tell you one thing. Let me make one thing clear. We are not setting up anything closer to the market or going up north with a purpose to disturb the market in any way at all. What we are trying to do and what we have achieved is we have created a new ecosystem with raw materials there, the customers there, manufacturing there, and supply there, giving us some advantages on manufacturing costs and giving us accessibility and also a freight advantage. Having said that, yes, there will be for a short period, some replacement of material of the other peers who were selling there. But if you look at only total 4.2 to 4.4 million tons of the Indian market, it's hardly about a 4%. Now, that 4% is a growth that will take care of that 4% extra market share. Okay. That's great. Thank you so much. Yeah. The next line of question is from Mr. Srinath Sridhar from Infinite Financial Services. Hello. Hi. Yeah. Can you hear me now? Yes. Yes. Yes. Yeah. So my question is, how are the additional capacities going to be funded? And what is going to be the Gross Block in FY 2026 and FY 2027? I will ask Sanjay Bhai to answer that for you. Yeah. So the funding for the new project at Punjab, we have availed loans amounting to INR 1,320 crores. Okay. Okay. The total CapEx expected is INR 1,850 crores. At present, the gross block is close to INR 1,700 crores. So it will cross 3,650. It will be around 3,650 in FY 2025. And further, INR 400 crores would be added on account of cotton project in FY 2027. FY 2027? 2026. Sorry. Okay. And so total loan would be INR 1,300 crores? We have taken loans amounting to INR 1,320 for the project. Okay. And after that, no more. So for working capital, would you be availing an additional loan? Yes. We would be availing working capital, but the primary requirement for the facility would be LC, so non-fund-based limits. Okay. Thank you, sir. I would also, Srinath, like to add here that out of the debt of 1,300 and odd crores that we have taken for the unit, as per our DRHP, you must have read that of the primary issue size of 400, we are using 300 to pay off the debt. 160 crores we have already paid off for our Silvassa unit debt, and 140 crores we'll be paying off once we have availed this facility there at. Okay. So the cost of funding will be lower. At what rate would it be? The local debt is at about 9.25%. And we have an ECB, which is at about 4%, averagely about 7 point something. So this INR 140 crores, which we'll be paying back from the primary issue size, will go to the local bankers as an advance over the next three years of payment. Okay. Thanks a lot, sir. The next question is from the line of Mr. Jegadees Sharma. Hello. Are you audible? Yes, Jegadees. We can hear you. Yeah. Hi, sir. I have two questions. The first one is, what is the capacity of cotton yarn we are adding in FY 2026? Yeah. We are adding another 70 odd thousand spindles, which will give us a capacity of 10,900 metric tons per annum. 10,900 metric tons. Okay. Yes. The second question is, we are going to do 9,000 metric tons of technical textiles CapEx. What is the asset turnover for it and what is the CapEx amount you have incurred till now for buying this machineries and everything? The machinery that we have ordered is part of the current debt, and it has been ordered. And we have spent about, Sanjay, how much on that? 450,000 euros. EUR 4.5 lakh on that. EUR 4.5 lakh. Okay. Fine, fine. And my last. Are you paying INR 160 crores per debt, isn't it? We have already repaid that from the primary issue. For the current plant, we have paid the INR 160 crores. Yes. So my question is, do you think we will be debt-free in the next three, four years with the cash we are generating and everything? Come again. I lost you. Whether we will be a debt-free company in three, four years? Yeah. We'll be net debt-free over the next three, four years if you want to. But we also are making plans to grow otherwise. So it all depends how it moves ahead. Okay. Because we always have generating a lot of cash. So I was thinking whether we will be. Yes. Principally, what you said is correct. Okay. Thank you, sir. Congratulations. Thank you very much. There's a message from Mr. Tajinder Singh. He's asking he wants to know the source of CapEx for capacity expansion, how much debt and equity dilution is expected. Should we have already explained that on the total first phase, we are spending about INR 1,800-odd crores? We have taken a debt of INR 1,320 crores. The balance is for our internal accruals. And out of that, we have already spent about INR 450 to 470 crores on that. Thank you, sir. The next line of question is from Mr. Surya. Jude, we can't hear him. Yeah. He has not unmuted his mic. Okay. That was all the questions from the participant side, sir. So that's all that is there, Jude? Yes, sir. That's it, sir. All right. So thank you very much, everybody. Thank you for sparing time and participating in this phone call. And if you have any other questions, at any time, we are free to answer them. Excuse me, sir. Sorry to interrupt, but I have one last question if you would allow me to. Yeah, yeah. Please go ahead. Please. Sir, this question is on exports. I wanted to understand that exports have reduced significantly, and in the year 2022, 2023, we had major exports to Argentina, which is not there anymore. So what was this export for and the reason for this fall? See, as principally, because we are sweating our asset fully, we are producing. [Foreign language] Hello. [Foreign language] Hello. [Foreign lnguage] [Foreign language] Jude, Jude, what? Sorry, one second, sir. Yes, sir. You can go on. Ms. Jain I would like to just tell you that on that, we have been sweating our assets fully. On the export front, our exports have moved between 5% to 16%. Because we are not under pressure to sell, we move our needle of exports depending on the better net back. If our net back is better in exports, we move more percentage to exports. If we feel local is paying us better, we move it down to that. So I hope that answers your question. Yes, sir. So we have no further questions, sir. Hi, Jude. This is Harsh here. I have one small question, if I may. Yeah. Go ahead, Harsh. Yes, please, sir. So one small question, sir. There was one news article recently, around 15, 20 days ago, that Garden Silk Mills is going to invest with a joint venture with IOC in Odisha, Bhadrak, with a PTA and MEG plant. So, sir, are we seeing any capacity addition in the polyester yarn segment? Any intelligence there, sir? Thank you. See, Harsh, I would like to point out one thing to you that, as I said earlier, we are at about 4.2 million tons in the industry. And with the PLI scheme for man-made and with the government also realizing that the growth has to come from man-made to feed the entire country and the exports, over the next couple of years, we will need about 5.5 million tons of filament yarn from the country. Now, somebody will have to grow. So the growth will definitely happen. But having said that, I would also like to point out here that ours is the last plant that has been commissioned in April that is coming through. To put a plant of this scale, it requires a minimum of two and a half to three years. There is no announcement as of today, a formal announcement, or let's say I would say there's no groundwork that has been done so far. So if anything has to come, it will take another three years minimum to come. And we will require more capacity. One more thing I would like, Harsh, also like to inform you here today that on the filament yarn space, when you go back a couple of years, 10, 15 years back, there were about 1,500 players. Today, this 4.2 million-ton capacity, seven people hold about 85% of the market share. That's how consolidated that industry has become. And this additional capacity will have to come from one of the seven. I hope that answers your question, Harsh. Got it, sir. Got it. Yes. Thank you, sir. Anything else is there, Jude? No, that's it, sir. Thank you, sir. Thank you. Thank you, everybody, for participating. And pleasure that you took out time and attended our call. I thank the entire team at Sanathan for the untiring efforts and all our stakeholders for the continuous support and faith in our company. This is all from our side, and I would like to thank you very much for your time and attention. Thank you very much.