Cello World (NSE:CELLO) Q2 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to the Cello World Limited Q2 FY 'twenty seven Earnings Conference Call hosted by ICICI Securities Limited. This conference call may contain forward looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on the date of this call. These statements do not guarantee the future performance of the company and may involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in a listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded.

0:50 I now hand the conference over to Mr. Manan Goel from ICICI Securities Limited. Thank you, and over to you, sir. Thank you. Good morning, everyone. On behalf of ICICI Security, we welcome you all to Q2 FY 'twenty seven results conference call of Cello World Limited. Today, we have with us senior management represented by Mr. Gaurav Basur, Joint Managing Director and Mr. Atul Parmila, CFO. 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 and A session. Thank you and over to you sir. Thank you and good morning and Happy Diwali to everyone.

1:39 Thank you for joining our Q2 financial year twenty seven earnings call. With me today is our CFO, Mr. Asul Parolia and our Investor Relations Adviser, SGA. Our results and investor presentation are available on the stock exchange and on our website, and I hope you had a chance to go through them. For financial year twenty seven quarter two, revenue stood at 6 and 33.2 crore, up 7.8% year on year and 20.2% sequentially. EBITDA came in at INR 135 crore and PAT stood at INR 81.9 crore. For the finance first half of the financial year 2027, revenue grew 3.9% to INR 1,159.9 crore.

2:25 These numbers should be read in the context of the festive calendar. Last year, the festive demand was included in Q2, while this year the festive season falls later and a lot of the demand has shifted into Q3. Q2 and H1 are therefore not strictly comparable with last year and we believe nine months taken together will give a fairer picture offering reasonable comparison. On margins, the cost environment remains challenging. The West Asia conflict and volatile crude prices have pushed up the cost of polymers, fuel and gas and packaging. Higher natural gas prices have also added to a cost in Glassware and the Opelware operations. Gross margin stood at 50.2%, around 70 basis points higher year on year, but lower sequentially as these pressures build through the quarter.

3:16 Our EBITDA margin was at 21.3 against 24% last year, reflecting higher operating costs. Competitive intensity and low price imports from China continued to be a problem in the glassware operations, But things are getting better there. Overall, price efficiencies have come in, product mix is becoming a lot better. But overall, due to the higher gas prices, margins are impacted. Our PAT margins for the quarter stood at about 12.9%. Consumer where revenue remained broadly flat at INR 417.2 crore during the quarter, reflecting the shift in festive demand to a later period and slower growth in the steel bottle business due to the ongoing ramp up of operations.

4:14 In steel bottles, demand remains healthy. The near term priority is widening SKU availability and lifting capacity utilization. We are expanding the range to about 50 to 55 SKUs, which should support a gradual ramp up through Q3 and Q4, with margin improving as production efficiency starts coming in. In glassware capacity utilization stood at around 60% and customer responses continues to be encouraging. Writing instruments delivered strong growth of 69.5% year on year, led by a robust performance from the CELLO brand. We continue to sharpen the portfolio with introducing products aligned with evolving customer preferences. The objective is profitable growth and a stronger market position in an increasingly competitive category.

5:05 Molded Furniture and Allied Products had a subdued quarter with revenue of INR 78.8 crore, down 6.5% year on year. As we have consistently said, this is a crowded segment where our priority is to protect revenue and profitability rather than chase growth. Our online channel continues to gain share with e commerce and quick commerce together contributing 15.2 of revenue. We expect these channels to keep growing and to contribute meaningfully to the business. Quick commerce in particular gives us an additional route to the consumer and strengthens our brand visibility. Looking ahead, the second half is seasonally a stronger period and festive demand part of which has moved from Q2 to Q3 should support performance.

5:52 For financial year 2027, our priorities are clear operational efficiencies, portfolio rationalization, realigning our distribution strategy, deeper market penetration and working capital discipline. As demand normalizes and our strategic initiatives play through, we are confident of a steady improvement in performance. With that, I hand over to our CFO, Mr. Atul Parolia to take you through the financial highlights. Thank you. Thank you, Ara, and good morning to everyone. Let me take you through the financial performance for the quarter. Revenue from operations for Q2 FY twenty twenty seven stood at INR 633.2 crore, which is up by 7.8% from INR 587.4 crore in Q2 FY twenty twenty six and INR 20.20 higher sequentially.

6:39 Gross profit was 118.1 crore with a gross margin of INR 50.2 percentage compared with the 49.5% in Q2 FY 'twenty six. EBITDA stood at INR135 crore with an EBITDA margin of 21.3%. Profit after tax was INR81.9 crore with a PEG margin of 12.9. For H1 FY twenty twenty seven, revenue stood at INR 1,159.9 crore, up 3.9% year on year. EBITDA was INR 252.2 crore at a margin of 21.7% and PET was INR 155.3 crore at a margin of 13.4%. In terms of revenue mix, Consumer Wear contributed 64.8% of the revenue, Riding Instrument 21.5% and Moded Furniture and Allied Products the remaining 13.7%.

7:34 By channel, general trade contributed 70.3% of the revenue. The online channel share rose to 15.7% with profitability in line with the general trade. Export accounted for 8.1% and modern retail, volume trade 5.9%. Segment gross margin stood at 53.4% for the consumer wear and 52.6% for the IT instrument and 390% for molded furniture and allied product. Now with that, we can open the floor for questions. Thank you. We will now begin with the question and answer Participants are requested to use handsets while asking a question.

8:29 Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of with Monarch Network Capital. Please go ahead. Hi, sir. Happy Diwali. Sir, I have two questions. Firstly, on the segment, can you let us know what was the capacity utilization over there? And did we see any growth over there? If there is any growth, then by how much percent on a Y o Y basis? And similarly, for the glassware division as well, you mentioned that we are running at around 60 odd percent of capacity utilization.

9:15 So when there and did we see any growth on a Y o Y basis? If yes, then how much? And when do we expect this to reach optimum utilization? Thank you, Vivek. So basically on the OpenWare front, we are at about 80% capacity. We saw a marginal growth year on year. And so we hope exhaust this capacity by next year completely. We will still have a little capacity left this year. On the glassware front, we are still at 60 utilization, though our revenues have started increasing quarter on quarter. But overall, will be at 60% till the stock last and then we increase utilization as we finish the older inventory, which we have done to a very large extent in this quarter. So things are looking up there in terms of revenue.

10:16 Okay. And also on the steel bottle side, could you quantify as to how is the demand over there? How are we performing? And what is your outlook over that division as well? So I think there, of course, demand is much higher than supply. So as we stabilize our operations and get more efficiencies in, we are able to sell whatever we produce. So I think there our priority is to ramp up production as soon as possible. It is a technically tough product line. It's not that easy, but we've been able to achieve good efficiency, but we need to achieve a lot more to meet the demand that is actually out there. So we're ramping up, we're also installing two extra lines, which will come in next quarter.

11:08 So I think that will also help us in meeting demand. Okay. And with respect to our raw material pricing scenario, we see that our that the crude oil prices are also coming down. So what is your outlook over it? And in terms of numbers for our company, do we see any gross margin expansion in the coming quarters looking at the softening of raw material prices? Yes. So so raw material prices, the crude prices have just come down a little bit. We don't know. It is probably speculative. At this point, I cannot give you an answer as to what they will be.

11:54 They are still on the polymer side of things, they are still pretty high. The impact of lower crude oil, if this stays, will come down in the next one, one point five months. So I think, yes, post that we should see some expansion in gross margins. Also, if crude prices come down, our gas prices will come down as well, which will help in the Glassware business as well. So while Glassware, in Glassware, our overall realizations have gone up, but due to higher gas prices that have been offset. So I think lower gas prices will definitely help expand gross margins there as well. Okay, sir. And sir, in this quarter, did we take any price hikes? No. Price hike was taken last quarter. It was already taken. After that, there was no price hike that was possible this quarter.

12:48 Okay. And sir, last thing is on the revenue guidance. So where do you see Cello reporting numbers by the end of this financial year? And if you want to build our numbers for the next three years, so what kind of growth are we targeting? And now see, in this year, the growth is coming from the writing instruments because of the acquisition of that CELLO brand. But now going forward, will we see our consumer where division also firing? So I think the the good part is that the the sentiment has been very good in the last couple of months. You know? And and you... As I said that, September is not something that you can take year on year because a lot of demand shifted in October as well. So I think we are seeing a good momentum here in the consumer segment.

13:45 So consumer will definitely fire overall because you also have to understand that steel is not where it used to be, right? It has regrown because of supply, not demand. So I think when we are solving supply, demand is already out there. So I think we see a good growth on the consumer website. Apart from that, instruments, of course, continues to grow. So that is something that will keep happening. So I think by the end of this year, we should be looking at about a 10% growth year on year. And so for FY '28 and FY '29, can we see 1718% kind of growth? Yeah. I hope this momentum stays. So I think the new... We have the capacity. So if you talk about, say, know, open wear or glass wear or steel wear by then, we will have good capacities to grow fast. And plus we have the Cello brand in the writing instruments, which is also helping us. So I think next year, we can definitely think about those numbers. That is what we are working on to deliver stronger year next year.

15:00 Okay, sir. That's it from my end. Thank you. Thank you. The next question comes from the line of Manan Gwal with ICICI Securities. Please go ahead. Hi, sir. Thank you for the opportunity. So I have two questions. First, sir, on the in house manufacturing of the steel bottles. So by then are we expecting that whatever the sales which got impacted due to the non availability of the import product will get compensated with the in house manufacturing of the steel bottles? And second question is on the molded furniture. Like we have been seeing for the previous couple of quarters, there has been a decline in number. So if you can tell me what's the management strategy behind this? And how are we seeing the outlook to improve the revenue in this segment?

15:58 Thank you. So I think on the steel body side, by December, we should be at least getting the kind of product mix that we had previously, not the entire bit, of course, but smaller portfolio of about fifty-fifty five products we'll have by December. So I think that impact we'll see in the quarter after. And by then we should be pretty self sufficient on the supply side of things. On the Molded Furniture side, there have been two issues. One is very high polymer prices. So Molded Furniture, about 60% of the cost is actually just raw material. So when the raw material goes and shoots that high, it becomes difficult for us to sell as much. So the volumes do come down because of because it's a very big hike, it's not a small hike. It's a 30%, 40% hike. So that is why the volumes do come down in this these particular cycles.

17:00 So whenever the cycle is back down, you'll see revenue slightly heading upwards. Understood, sir. Thank you so much. The next question comes from the line of Bhavin Rupani with Investec. Please go ahead. Yes. Hi, sir. Thanks for the chance. I have several questions. First, on utilizations of Opelware. So you mentioned that in Q2, our utilization is somewhere around 80%. However, if I recall, last year, it was somewhere around 5% to 90%.

17:48 Still we have seen growth in this category. So just trying to reconcile it. No, it was never 85%. It was about 80%. So we are pretty much similar to that percentage, though we have grown marginally over last year. So it remains at about 80%. So utilization cannot be seen quarter on quarter. It will have to be seen as a whole year. And 80% is the max that we can do? Or is it that we can reach 85%, 90%? No, no, we can reach 100% also. And that is what we wish to do. By the end of the year, we want to grow to about 85 odd percent and then next year finish the capacity.

18:36 Got it. So last year, was 80% this year as well 80%. So any pressure that we are seeing in the market, demand is low or any complement density? We have taken a price rise, right? So we have about almost a 10% price rise. So the volumes are same, but the price rise has given us the revenue hike. Fair enough. Okay. Any expansion plans over here, Opalware? Because it will be consuming capacities next year. So any chance of brownfield optionality? Correct. So Opalware, we will take a view next year, early next year. It takes about twelve to fourteen months to put up a new facility. So by early next year, about first quarter of twenty seven, we should be in a good state to see how the market is panning out because there is a new player also that has come into this segment.

19:31 So we also have to see competitive intensity. So if there is a feeling that things have been very good and we are heading in the right direction, then definitely, we'll are looking at a new facility. Any sort of brownfield optionality or it will be a greenfield one? It will be brownfield. So we already have a glass plant, so it close will to the glass plant. So a lot of the infrastructure in the facilities are already there. So it'll it'll be more of a brownfield project. Fair enough. Okay. Sir, what I understand is Glassware, the so our plant wasn't running at optimum utilization. It was running at far lower utilization as compared to last quarter as well.

20:22 Was it that we had a plan for a shutdown in this category? And if yes, when do we plan to restart it? So we have had a main place, not a shutdown, it's maintenance upgrade that is currently happening, which is just a month, month and a half. And by December, we'll restart operations completely. Because there was some machinery that we were upgrading to get to a better product mix. So it was only for that particular reason that we have taken a temporary halt in product, it's not a shutdown. And in the meantime, we are also eating up all the inventory.

21:07 So as I had mentioned that the revenues have been ramping up well, which is a good sign going ahead. And also the fuel prices are extremely high during this period. So we thought this is the best period to take this call. Got it. And any restart cost that we expect? So December will temporarily down. So any restart cost because this is, I think... There is a cost, but it's been provided for. So it doesn't hit us. It's already been taken into account. Not a very major cost, very, very limited. Got it. And would it be possible for you to specify what is our glassware inventory in rupee term as well as tonnage term as of now, as on October or November?

21:54 So I told you on the call, can tell you those numbers, but it's come down drastically already. So I think when we start again, we'll be running at higher utilization. Fair enough. Okay. Next, again, to interrupt, madam. Would request you to rejoin the queue. Thank you. The next question comes from the line of with SH Investment. Please go ahead. Thank you for the opportunity. I wanted to ask what was the Glassware capacity utilization in q two, and what revenue did Glassware and generate? So I think Glassware was at 60%, which was previously also there. So we have been eating up our inventories, which has been the good sign. And going forward, we'll be working on high utilization levels as we start the furnace.

22:59 Got it. And additionally, wanted to check how much did the higher gas prices hurt the margin since last year? So higher gas prices have been pretty crazy because we were working at 53, 54 in SCM, and we had cost doubled. So gas is almost 30% of our cost. So that had an impact on us, but we were able to offset it by slightly higher realizations. So that is why we didn't see any losses, but we never we also did not see profits coming in. But going forward, if fuel prices comes down, natural gas prices come down, we'll start seeing profitability coming back to the Glassware segment. Got it. Got it. That's it from my side. Thank you so much for the opportunity and the value creating.

23:48 You. The next question comes from the line of Anu Parikh with Anandarati. Sir, you indicated that gas prices constitute 30% of glassware cost and we took a price hike to offset the impact. So can you let us know how much was the price hike taken in glassware? So price hike was about 8% to 10% in Glassware, but it was not only the price hike, it was more of a product mix change that we were able to do during this quarter, which has also helped us. So I think price hike is about 10%. And sir, on the import of glassware, so how is the import scenario now? Like have you made any representation like the ADD which came on for borosilicate glassware?

24:49 So have we done anything? So we have initiated the same in not an ADD, but an MIP in glassware. So we are waiting for how things pan out there. We've already done a representation. So hopefully, if that comes in, that will be very helpful for the segment. And sir, how has been the import pressure over the last quarter in Glassware? So import pressure is still there, though a little higher shipping prices helped us during the quarter because from China, the shipping prices are pretty high. So that increased the overall logistics cost. So basically, it was slightly better.

25:36 But when these prices come down again, but with our changed mix, we are hoping for a much better less pressure from dumping. And sir, how has been the demand so far in like October and up till date? And how has been the channel inventory? So I think October has been a good month overall. And channel inventory is pretty low now because a lot of it got used up during the festive season. So I feel like we're at a good place at this point in time. Sir, last question, sir, would you like to give any margin guidance for FY 'twenty seven?

26:30 So I think I would refrain from giving you a margin guidance. It will definitely be better because this year we've been hit by three things. One is the steel wire unit, where our margins have been lower because of inefficiencies and when we are building inefficiencies, it takes a little time. Of course, the glassware also because of very high gas prices and also Cello pens, where the margins are a lot lower than UNOMAX, which is, of course, will change significantly. So I think it can be significantly higher from here. This is our lowest that we've gone and it's been that kind of a year. But I think from now on, things will things are looking better and things will be much better next year.

27:20 Thank you so much, sir. Thank you. The next question comes from the line of Karan Gupta with ACMIIL. Please go ahead. Yeah. Hi. This is Karim Gupta from Asset Management. So my question... Am I audible? Right? Yeah. Yeah. You are. Please go ahead. Yeah. So, yeah, my my question is on the steel facility. So what is the margin there and what's the utilization? And what's the constraint in growth right now? So I think the the margins are a little... A lot lower than what it used to be because they're in the, you know, setting up phases and, you know, you... Starting efficiency optimization phases.

28:15 The utilization, we are not able to get fully due to the inefficiency, not because of we are not able to we don't want to produce. It's more of an efficiency gain that we are going to get there. Actually, we are installing two machines more in this coming quarter. So I think we are in the expanding phase there also to get more and more products in. And as we increase the volumes that we produce, the margins should come back to where they were pre production when we were trading. On couple of quarters, I think we were running at low utilization in the CELLOT.

29:00 Sorry. Sorry. I didn't get your question. So... Yeah. So from couple of quarters, I think we are running at low utilization on the steel plant? Yes. So low utilization is not because of running it at low utilization. It's more from the efficiency point of view that the efficiencies are building up. Though it's not it's, of course, improved from last quarter, but we are still not there. We are not still happy with the efficiency. We still need to work on it, but we significantly made a lot of inroads. It is a technically difficult plant. Takes a little time, but things have been good. There were sealing issues that have been there at the plant, but we are getting through that phase. Okay.

29:48 So if 05/27, can we target on the Classware, Opelware combined five five fifty cover something? Yeah. Close to that. Yes. Okay. Okay. Okay. Because it's around 30% something. Right? 25% to 27%. It will depend on the end of the year. The next question comes from the line of with Imagine Bonds.

30:50 Please go ahead. Yes. Good morning. Just wanted to understand, apart from the normal business improvement and margin improvement in margins by the softening of energy prices or other items, what is any definite strategy to improve the return on equity? See, return on equity, basically, the idea is that there is a lot of cash on the books, of course. A large part of our balance sheet is cash. So I think we are also waiting for an opportunity. Like we were able to do acquisition in the Cello Pen's business. So we're waiting for an opportunity to have a good company that we can acquire, number one, or we can start something new.

31:44 So I we have these in mind. It's just that things have been a little turbulent when it comes to lot of things happening together, whether it is a glass thing, which has been under pressure and also the steel plant, which is new. So I think once we settle with these two things, we are definitely looking for either an acquisition strategy or expanding into a new vertical. So that is something that we have in mind. That is why that cash is there on the books. So I think once that happens, you know, you'll automatically see better return on equity. So would you would you restrict yourself to the related line of businesses? Are you open to any newer or fresh ideas in totally unrelated?

32:34 I think we'll take a call depending on what the acquisition target is. So we prefer to use our strengths and do synergetic businesses because we already understand that business, but we are still open to newer ideas. Okay. Thank you. Thank you so much. The next question comes from the line of Bhavan Rupani with Investec. Sir, continuing on Glassware, was it EBITDA neutral this quarter?

33:21 Yes, yes, yes. We broke even basically. Okay. And after reduction in export incentives in China, what sort of price hikes we have taken in Glassware apart from the input cost inflation pass on that we did in Q1? So we've taken around a 10% hike in the Classified segment. So that has helped a little. China has of course, the subsidy has gone away, but it has not completely their prices have not gone down by that much. It has gone down it's gone up, sorry, gone up marginally. But more offset is due to freight costs, because the freight costs have been higher. So that has helped us a little bit in the last few months.

34:12 Got it. So second question on stationary. So would it be possible for you to break up Unomics and Cello? And how should we understand margins of Cello versus Unomics? You mentioned Cello margins are lower. So is it that price positioning is an issue? Or is it related something related to production? So I think on the mix part, it is so UNOMACS is almost at almost the same level last year, but the growth has majorly come from Cello pens, which is very encouraging. It's coming it's happening quickly, the ramp up. The problem has been more from there were a lot of product lines that were running previously that were not making any money for the company. So we have kind of revamped that entire strategy and started to put in products that are margin accretive.

35:06 So I think it's substantially lower, the profit margin at this point of time compared to UNOMAX, which is less than onethree. But I think going forward, we will start seeing these margins coming back as our costs get optimized at the Cello facility as well. Fair enough. Okay. I have another question on Steelware, if I can go ahead. Sure. Yep. So first, what is our capacity right now? Incremental capacity that we are adding over year in terms of number of pieces. How should we understand utilization right now in Q2 and potential revenue and EBITDA margins from this category?

35:54 Sure. So I think this category will ramp up in the next quarter, as I said. So the capacity is almost about 5,000,000 pieces out of this. We are currently at about 2,000,000. So I think we need to still ramp up quite a bit. And post that, we are always we can always increase capacity by just adding machinery as we are doing in next quarter. So I think the potential we still reach potential, but we are getting there. And in terms of EBITDA margins, think they will start stabilizing and we come to an exact EBITDA margin in the next couple of quarters.

36:39 Currently, it's not in a steady state, so I can't tell you an exact margin on that particular product line. All right. So 5,000,000 pieces that you mentioned, is it including the two new lines that you are adding? Yes, yes, yes. It's including two new lines. Okay. And just to follow-up on this, so what was our peak revenue in steel bottles before prior to BIS? So that is the number I can tell you on the call. Maybe at a later stage, I'll definitely we can exchange. Got it. Last question, Any CapEx guidance? And on working capital, sir, we were planning to rationalize something over your since last six months.

37:30 Working capital is still over there at similar levels. So how should one understand the trajectory going back? Yeah. Thanks. No. So I think working capital is at the same level, but I think what has happened is that overall, there has been a growth as well. So we are trying to manage a little mainly the working capital has been in inventories as well because of glassware as well, because the utilizations are lower and there were higher stocks during the quarter. Otherwise, receivables, held it. We have not let it increase a lot, but we want to bring it down further about five, seven days. And overall, so I think this is something that we are constantly working on. We are also we want to bring it down to about ten, fifteen days overall cycle, which we are striving for.

38:21 It's just that sometimes the inventory has gone up, sometimes the receivable has gone up. So I think we're trying to manage both now. And you will see a fall in this over the next few quarters. All right. Any CapEx guidance for FY 2728? CapEx, not much. We've done most of the CapEx. It just be maintenance CapEx going forward. Got it. Thank you so much for answering the questions, and happy Diwali to the team. Happy Diwali. Thank you. The next question comes from the line of Ashok Shah with E. Clavia Invesco Family Office. Please go ahead. Ashok, sir, please go ahead with your question.

39:15 We move to the next participant. That is Karan Gupta from ACMIIL. Please go ahead. Yeah. Hi. So on the margin side, it's just that not refraining to give the margin guidance. But but looking at the steel facility, steel facility, after your maintenance and all these things, when you're going to ramp up the facility, how this margin will support the margin... Overall margin? And right now, steel facility, before your maintenance part, will be what will be revenue shares in the consumer space?

40:09 Sir, Steel Wave was quite a large proportion of our share, which had de grown and has de grown. But overall, we are ramping up our facility. At our peak facility, we should look at very good margins coming back. And we will be very, very supportive to the margins. So as I said, three things that have affected us, which is one is the steel segment, one is the glass gas prices and one is writing instruments, Cello bench. So these three things coming back will be amazing for the margins. So I think and we are sure that this is going to happen soon. So in your consumer segment from last couple of quarters, is it trying to assume you're still facilitating something dragging down the group, but the other categories of plastics in the consumer segment, and if something doing well, or you can maybe rephrase question of consumer segment, which are segments are driving down the group in sales from couple of quarters.

41:20 In this quarter. I think down growth is you are right. It's still very weak. You know, the plastic houseware business, openware business has not grown too much in this quarter, but as I said that you will have to take three quarters into into main view because a lot of the demand of active season has shifted to October. So when you'll see the next quarter, you'll be able to compare it. But overall, CELLORE is something that has been known for us in this quarter as well, which is just bringing down the overall growth as well. Okay. Okay. Okay. So in the consumer segment, which category is doing good enough and which are the categories?

42:13 If you just share the product wise, Eddie. Of examples. Glassware for us is growing well. Glassware for us is growing well. And this is a major category that is growing. And for this quarter, particularly, next quarter, I would there will be, I think, different changes in that thing. But others have grown, but at a lesser pace. And steel wear is down. So this is a dynamic. Okay. And just last one on the capacity side, as you said, 5,000,000 capacity, and you are running at 2,000,000. Right? Right. Right. So how long after this maintenance and everything, how long will you take...

43:03 Next couple of quarters we should reach there to the full full capacity of what we what we want to be at, which is about family features. Okay. And we will come up with some price high goals focus on the volume No. No price hike. No price hike because we've already taken a price hike here. So there is no price hike, but the operational efficiencies will help bring down the cost. Okay. And then the writing instrument, how you see the growth overall? Because some of the Yeah. Yeah. So I think you are also introducing new products in that.

43:52 Yeah. No. So I think overall for us, it's been good, and it'll it'll it'll keep growing well because the brand equity of Cello is very, very strong. And we are at the lower end of the revenue mix right now. So as this trend ends, things are getting better and better. So we will keep seeing this growth every quarter. Okay. Fair enough. Thanks. Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to the management for the closing remarks. Thank you. With that, I conclude the call. If you have any further questions or queries, please contact our Investor Relations Advisor, SGA.

44:41 And thank you everyone for today and Happy Diwali. Thank you, sir. Ladies and gentlemen, on behalf of ICICI Securities Limited, that concludes this conference call. Thank you for joining us and you may now disconnect your lines.