Excel Industries (NSE:EXCELINDUS) Q2 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to the Excel Industries Limited conference call hosted by Signis Partners. 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 0 on your touch tone phone. Today on the call, we have with us mister Ravi Ashraf, managing director, mister, president and COO, mister CFO. Before we proceed with the call, a disclaimer that this call will contain forward looking statements about the company, which are completely based on beliefs, opinions, and expectations as of today. Actual results may differ materially.

0:52 These statements are not the guarantee of our future performance and involve risks and uncertainties that are difficult to predict. A detailed safe harbor statement is given on the page two of the investor presentation of the company, which is uploaded on stock exchanges and on the company's website. With this, I now hand the conference over to Mr. Ravi Shankh for his opening remarks. Thank you, over to you, sir. Thank you. Good afternoon, everyone, and thank you for joining us today. Before I begin, I would like to take this opportunity to wish everyone a very happy Danteras, a happy Diwali and a prosperous New Year. Speaking about the quarter, the quarter witnessed challenging operating conditions in the agrochemical industry with the monsoon at approximately 87% of normal levels, which impacted overall agrochemical demand.

1:47 When we spoke in May, we cautioned that the agrochemical demand was uncertain because of the risk of a suboptimal monsoon, but that risk has played out in more adverse manner than we had envisaged. We have delivered a robust performance in Q2 and H1 of FY 'twenty seven. This was despite significant underperformance of DTC in Q2 with quarterly sales at lowest level in the last seven years. This shows a structural shift in our business model that makes our business more robust. During Q2 FY 'twenty seven, the revenue grew 2% year on year, while EBITDA increased 22% and PAT grew by 42%.

2:34 What is particularly encouraging is that our diversification strategy is beginning to translate into tangible results. The growth in the three focus areas we have spoken about in our earlier calls, our Performance Solutions business, YP derivatives, that is yellow phosphorus derivatives business and Contract Manufacturing helped offset the cyclical downturn in our traditional agrochemical intermediates business. This is also reflected in our export performance with exports increasing to INR 81 crores in Q2 compared to INR 47 crores in the corresponding quarter last year. Alongside the improvement in our business mix, better realizations, cost discipline and well timed raw material procurement supported a meaningful improvement in profitability.

3:25 Our EBITDA margin expanded to 13.3% in Q2 and 13.9% for H1 FY 'twenty seven versus 11.1% in Q2 FY 'twenty six and twelve point five percent in H1 FY 'twenty six. This performance reinforces our focus on moving towards a more diversified business portfolio with higher share of Performance Solutions business, YP derivatives, that is yellow phosphorus derivatives business and contract manufacturing. As communicated in May, the dedicated capacity for the five year long term supply arrangement, which was announced in November 2025, was scheduled to commence operations in July 2026.

4:14 I am pleased to share that the project was successfully completed on 07/23/2026, in line with the committed time line and customer requirements. Supplies under this agreement are now at full stream. This successful commissioning reflects our execution capabilities and further strengthens our position as a reliable contract manufacturing partner. Additionally, regular supplies under the agreement with a multinational company, which was announced in May 2024, are moving as per contract. We continue to engage with customers to explore further opportunities in this segment and will take will make appropriate disclosures as and when these materialize.

5:02 In our Performance Solutions business, the additional biocides capacity commissioned in the second half of FY 'twenty six is fully operational. Our planned Q3 FY 'twenty seven launches for new products in the Performance Solution range are on track. Further, in the YP derivative range, we are targeting to launch a new product in Q4 FY 'twenty seven. On the product development front, we believe the new products will further strengthen our offering and create additional growth opportunities. In our new product development, we have seen benefits of our new corporate R and D center, which was operationalized in Q3 FY 'twenty six. We have plans to further strengthen our corporate R and D center capabilities and infrastructure.

5:52 Moving ahead, we expect the agrochemical market to remain subdued in the near term with demand weakness likely to persist in Q3. In addition, raw material price volatility, supply availability and shipping disruptions may continue to create cost pressure during H2. However, our focus remains firmly on the businesses and the product categories that offer strong growth potential. While raw material availability and logistics will remain areas of close monitoring, our emphasis will continue to be on operational efficiency, product procurement and disciplined cost management. At the same time, we continue to invest in building organizational capabilities through internal talent development and external recruitment to support our strategic growth priorities.

6:44 Before I conclude, I am pleased to share an important milestone in our sustainability journey. Excel Industries has been awarded silver rating in Eco Audit Sustainability Assessment, placing the company among the 90 percentile globally of the businesses assessed by EcoWadis. The rating reflects the continued strengthening of our sustainability management systems, deeper value chain engagement, improvements in environmental performance and greater transparency in reporting. For us, sustainability is not merely a compliance requirement, but an integral part of the way we operate. More importantly, as we expand our global footprint and strengthen our Contract Manufacturing and Performance Solutions businesses, this recognition will help reinforce our credentials as a responsible and reliable business partner.

7:37 We believe it will support our engagement with existing customers and strengthen our ability to build relationships with new global customers. In addition to this, the safety continues to be remain a key priority across all our manufacturing sites. We are pleased to have received two trophies at the Maharashtra Safety Awards twenty twenty five for our Lotte site. Our Roha site received the Safety Safe Tech Award 2026 for Best Employee Training Campaign and Safety Awareness Excellence. Two of our safety executives were recognized as Best Safety Professional of the Year. These recognitions reflect our commitment to strengthening safety practices, employee awareness and building a strong safety culture among across our operations.

8:28 To conclude, I would like to mention that we remain focused on being diversified, competitive and profitable with a greater contribution of Performance Solutions business, YP, derivatives and Contract Manufacturing over the coming years. With that, I would like to hand over the call to our CFO, Mr. Nevendra Dossi. Thank you, Ravi Bhai. Good afternoon, everyone, and thank you for joining us today. Moving on to the financial performance for the quarter two and H1 FY 'twenty seven. On a stand alone quarterly basis, the company reported revenue of INR 274.6 crores in Q2 FY 'twenty seven compared to INR 270.2 crores in Q2 FY 'twenty six, registering a year on year growth of 1.6%.

9:21 EBITDA stood at INR 36.6 crores compared to INR 30.1 crore in the corresponding quarter last year. Also reflecting a growth of 21.5%. EBITDA margins for the quarter stood at 13.3%. Profit after tax was INR 26.7 crore compared to INR 18.7 crore in Q2 FY 'twenty six. Moving on to H1 FY 'twenty seven. Net operating revenues stood at INR 568.3 crores compared to INR 579.7 crores in H1 FY 'twenty six, a growth of 2% due to a weak agro season with monsoon at 87% of normal.

10:08 EBITDA for H1 stood at INR 79 crores with a margin of 13.9%, while profit after tax was INR 55.8 crores, translating into a profit margin of 9.8%. Our balance sheet continues to remain exceptionally strong with a healthy net cash position. This financial strength provides us with the flexibility to navigate operational challenges while continuing to invest strategically in initiatives focused on improving margins and creating long term shareholder value. That's it from my side. Wish you all a very happy Dantara and happy Diwali. We can now open the floor for question and answer session. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may may press star and one on the touch tone telephone.

11:04 If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handset while asking a question. The first question is from the line of Varun Singh from Karma Capital. Please proceed. Mister, your line has been new... Unmuted. Please proceed with your question. Due to no response from the current participant, we move on to the next.

11:55 The next question is from the line of from Capital. Please proceed. Hi. Am I audible? Hello? Yes. Audible. So in the previous call, we highlighted competition from Chinese manufacturers and importance of maintaining dynamic pricing strategy. So just wanted to understand, given the current weak demand environment, how has been we able to sustain our market share across agrochemical intermediaries, particularly the EDTC and NATCP? So specifically response on agrochemicals, we have been able to maintain our market share. We have not lost market share primarily on DET.

12:47 And also, investor presentation, we are at lowest levels in last 11 for DETC sales. So given leading global positioning DETC, what are the key factors driving the sharp sharp decline? Primarily, this is linked to Super El Nino, as you are aware, in the agrochemicals and in monsoon related. And basically, that's what's created the weak demand conditions in India and LatAm, which are the primary geographies for these molecules. Understood, sir. And DGT are recommending anti dumping duties on HDD and ATMP. How does how do we see the potential impact on domestic pricing and any competitive dynamics?

13:39 So the recommendation has been made by the DGTR. It has, of course, to go through the next phase, even what has been recommended has already been also published. If it comes into effect, of course, there will be an improvement in the domestic pricing for these products. And as and when that becomes effective, we should see better pricing realization. Understood, sir. That's it from my side, sir. Thank you. Thank you. The next question is from the line of Dharsh from JK Capital. Please proceed. Good afternoon, sir. Just a couple of questions from my end. So DTC sales were at their lowest Q2 level in eleven years. Beyond the weak monsoon, how much of this, like, reflects customer destocking or competitive pressure? Like what indicators would signal a recovery?

14:42 Primarily, this is linked to El Nino and poor weather pattern. As far as the customer destocking, just give me a moment. So as and when the weather conditions improve and, of course, destocking is completed, as and when the demand revives, we are well prepared to take up any demand that comes up. And as and when the recovery happens, we'll be well positioned to capitalize on that. Okay. And like Q2 exports increased to INR 18 crores from INR 47 crores last year.

15:28 So which products and markets drove this increase and what it supported by repeat orders or a few large shipments? So the exports increased due to focus areas that we have mentioned. And primarily, focus areas of Performance Solutions as well as, to some extent, contract manufacturing have contributed to this growth. This is actually a growth which is expected to be sustainable growth, not a one off single order kind of growth. And this is also largely due to some of the new products we have introduced, new customers that we have... We've been able to obtain as well as certain new geographies we've been able to make breakthroughs in.

16:20 Alright, sir. That's all from my end. Thank you so much, and all the best. Thank you. The next question is from the line of Varun from Karmo Capital. Please proceed. Am I audible? Yes. Yeah. Sure. Thank you for the opportunity. So can you talk about the scalability opportunity for the new growth engines, like performance solutions, contract manufacturing, etcetera? So, like over next three years, what's the overall potential, especially from the EBITDA point of view, you think these investments can unlock by maybe FY 2029? Translating this into the numbers you're expecting is a little bit too specific. However, I can make some general comments.

17:13 These are large consumption products across several geographies as well as, as I shared in the earlier question, we've been able to make some breakthroughs in certain new geographies as well. So these are all global usage products as well as there are some products which are smaller niche products where we are market leaders, even those kind of products, we have seen some opportunities and growth. As far as contract manufacturing is concerned, of course, our perspective is very much global on this, while we have domestic opportunities coming up as well. We are quite agile and focused on looking at certain global opportunities in the contract manufacturing space. So over three years, both these areas are expected to contribute towards whatever growth objectives that we are looking at, and we also have classified them internally as focus areas. So we will continue to expand new geographies, new customers, new products as well as contract manufacturing, new relationships and new agreements.

18:17 Got it. Got it. And the second question Sorry, just to add, you've already made some capital commitments, which we have been sharing in our calls in terms of how much we capital we are deploying. So for example, we are setting up new multipurpose facilities at one of our sites. And this kind of investment, as we continue to do, these will support the growth initiatives. Understood. Understood. And secondly, can you talk about the guardrails for incremental capital allocation that we are doing? So I mean, what are the benchmark that we are considering, especially in terms of return on capital employed?

19:05 So how as an investor, we should think about the company's sustainable ROCE over the next three, four years? 1.5. So basically, as we've shared in our earlier calls as well, whatever capital investments or capital deployment we do, we are looking at a 1.5 to two fixed assets turnover ratio on those. From an ROCE perspective, we will be targeting anywhere 15% to 20% ROCE, closer to 20% preferably. In some cases, this is blended, I'm talking. Some products may give better ROCE, some products will come slightly below. But on a blended basis, this is what we are looking at from an ROCE perspective.

19:57 Does that cover your question? Got it. Got it. Sure. Thank you very much, and wish you all the best. Thank you. Thank you. The next question is from the line of Sameer Singh from CBS Capital. Please proceed. Yes. Good afternoon. Thanks for the opportunity, and happy to follow-up. My first question was on the revenue mix for for the half year, if you could give it that between agro, performance solutions, deposits derivatives, API and Contract Manufacturing? Just give me one moment. So while may not be possible to give you an exact breakup, but I can tell you since agro has been a key focus and a lot of times we keep getting asked this question, for first half of the year, agro is at 35%, non agro is 65% of the mix.

20:59 Great. And this contract manufacturing, have we think you were hoping to do about 15 crores of water on full ramp of both the contracts. So have we reached that level? Yes, we are on track. Yes. Great. And on if we just last year, I think we had reduction in our gross margins because of sort of a lag in increasing our pricing versus increased raw material costs. So in this, now we're currently running about 51% gross margin. How much of that could be sort of contract manufacturing and the other businesses, higher margin business coming into play? How much of that would be just catch up from in pricing from last year? And how much would be sort of benefit we got from an inventory buildup?

21:56 So I just wanted to add one more point to what I mentioned earlier as well before we move into your current question that whenever there's an upcycle in DTC, there's a turn in the cycle, this will go in our favor and we will get the benefit of that as well. I just want to add that to your previous question. As far as the margins are concerned, there's an improved product mix, as I was sharing, and we have shared this in the previous calls as well that we want to focus on EBITDA accretive and margin accretive businesses. And the Contract Manufacturing is high margin for us. There's and also the Performance Solutions also we have seen better realizations and higher margin. So this has contributed.

22:44 Second factor in this has been timely procurement and proactive procurement of raw materials. And there has been a lot of volatility in and challenges in availability of raw materials. So we have done that as well. So this and, of course, a better mix between the products has created the better margin. Yes. And we expect the volatility to continue into Q3 and Q4 as far as raw materials go. Pricing, difficult to take a call at that point, but we will try and pass on the pricing as much as possible. I guess my question, Ravi, is how much of this improvement in margin is sort of structural because of better product mix? And how much of it could be just because we had low cost inventory on our balance sheet?

23:35 It's a combination of both. I can't give you an exact breakup because, of course, the contract manufacturing business as well as Performance Solutions businesses that we have added, they are at a better margin than previous. And I would say that's played a significant role as well as you know, the procurement also has had some part to play, but not possible to give you an exact breakup. Got you. No problem. And on... You know, you you mentioned about DGTR coming out with the the recommendations for ATD on organopausal. So I think one, if I'm not mistaken, it's not a very high duty. I think it's about 15 to 20% above, of the cost.

24:28 And secondly, I think from what I could tell, the amount of being imported from China, that seems to be about maybe 12% to 15% of the total domestic consumption. And given the... Our competitor having a large underutilized capacity, do you think actual pricing will will increase post even if the... ADD has... Is implemented? So we have reason to believe that the prices will definitely improve. Historically, China has been, at least in the past, dictating prices, these products, not just for India, but on a global front. Few geographies globally already has put in place an antidumping duty. When that kind of situation happens, typically, the Chinese companies like to push their products into geographies where they look to face this antidumping duty. India was one of those geographies.

25:21 There was no antidumping duty. If the antidumping duty does go into effect in India as per the next stages it is supposed to go through, we'll definitely see better realization and better margin profile for these. And hopefully, the domestic players will be able to capitalize on these opportunities. And what capacity are we currently running our, you know, alternate plant at? Utilization? There is definitely an improvement in this utilization. I cannot give you an exact number on what capacity utilization. It. And the ADD was only on the assets. So is it possible that imports will come in from those stores or formulations?

26:08 Or that will not happen? Right now, it's specific and focused to these two areas. So, you know, I can't comment about what else could be in the future. No. But is the is the product interchangeable? Acid... Acid form versus salt or formation form? Give me one moment. Yeah. It is possible to interchange, but then can... Taken when the applications were made as well. Any circumvention, if it happens, we'll have to find appropriate ways to deal with it.

26:58 Got it. And and last question from my side, do we manufacture a PBT? Can't give you a response. Did. I'll get back to you. Thank you. Thank you. The next question is from the line of from Nirvaal Securities. Please proceed. Good afternoon. Thank you so much for the opportunity. So the stand alone inventory increased to around INR $2.52 crores in September from $1.29 crore in March. Despite lower h one revenue, what drove this buildup, and when do you expect it to convert into sales and operating cash flow?

27:50 So as I shared earlier, there was a lot of volatility in the raw material prices, and also there was availability. So we thought it was prudent to increase the inventory levels, particularly for our critical raw materials. So done with the view that we should maintain continuity of supplies and as to be seen as a reliable supplier for these trucks. And we have benefited in terms of the ability to service customers and also control our RM cost because of that, which is also reflecting in our improved gross margin. All right. All right. Sir, just one last question from my end. Within the planned 200 to 300... Growth CapEx over three years, how much is committed versus discretionary?

28:41 And which project projects have priority and what utilization and grid... Return thresholds guide for the investment? Give me one moment to respond. Yeah. Sure, sir. And the focus areas. So as far as as far as the areas are concerned, we have already specified which focus areas which we'll be focusing on growth. So it will be in those three focus areas, YP derivatives, Performance Solutions as well as manufacturing.

29:33 We have roughly committed about 50% of whatever 150 crores is what we have committed. As far as any new opportunities, as we have shared in previous calls as well, these have to be EBITDA accretive. Fixed asset turnover ratio, we estimate will be 1.5 to two. And from an ROCE perspective, we'll target close to 20% ROCE on these products. All right, sir. Got it. Got it. That was really helpful. Thank you so much, sir. All the very best. Thank you. Thank you. The next question is from the line of from SKB Securities. Please proceed. Hi. Hi. Thanks for the opportunity.

30:20 Sir, I wanted to know that in the current quarter, we have seen a good margin expansion. Right? So I wanted to know whether we can sustain this margin expansion and profitability growth, like, even in the absence of meaningful recovery in the agrochemical business? Hello? Just give me one moment. Yeah. So on a structural basis, we believe we'll be able to sustain these margins. There could be short term pressures on certain products. And as I shared earlier, depending on the recovery cycle of agrochemicals, if it turns in our favor, of course, we can see even better growth and maybe hopefully bottom line also could improve substantially from here.

31:14 Okay. Okay. That's helpful. And sir, like if we look beyond FY 2027, so what are the key growth drivers that you would like to point out for the next two to three years? So we've been sharing on our previous calls as well. Performance Solutions is one area, which has already shown growth in H1 of this year compared to H1 last year. We will continue to invest at segment. In that, we have made some announcements as well, like Biocide capacity we have increased, for example. There are certain other new introductions and new products coming in this quarter as well as the next quarter. So all of these are under Performance Solutions as well as in our YP derivatives, which is yellow phosphorus derivatives product category group.

32:02 This is what is going to be the focus areas. And contract manufacturing, we already have two active contracts, which both of which we have disclosed. There are several contracts manufacturing opportunities in the pipeline that we are at discussion or development or some kind of phase pre contract, as and when these materialize into a contract, we will make the disclosures. However, again, these are a mix of global as well as domestic opportunities, and these will all be adding to our growth. As shared on one of the previous questions as well, we have an MPP that is coming up in one of our sites, multipurpose plant, which will be supporting this kind of growth opportunities.

32:52 As well as we have expanded some capacities in which have been announced earlier. So combination of the expanded capacities, new products and the capacity coming up in pipeline will be supporting the growth. Okay. Okay. And sir, like finally, I wanted to get some details on your contract manufacturing business. So how is it progressing in terms of customer additions, order pipeline and the capacity utilization? And are you witnessing any increased outsourcing opportunities from global customers as well? So both the contracts that we have currently are progressing well. We are operating at whatever expected capacity from the customers.

33:42 Was that your question? Did you have something else you wanted to know as well? Yes. That's it. That's it. Yes. Thank you. Okay. Thanks. Thank you. The next question is from the line of from Counter Cyclic Investment. Please proceed. Hello, sir. Thank you for the opportunity. So I just had a suggestion. You know, since our stock is trading at least below half times our book value and also below our investment, why don't we consider a share buyback to, you know, reward our shareholders? How would be a great time to do that? Thank thank you for your suggestion. We will we will consider at appropriate time. Thank you. We'll discuss this with... Yeah. We'll discuss this with the board.

34:36 Thank you. The next question is from the line of Arun Mishra from SG Capital. Hey. Hi. Thank you, sir. A couple of questions from my end. So the gross margin has improved sequentially to 50.6%, like, while the EBITDA margins declined from 14.4 to 13.3%. So what explains this divergence? And what was, like, any key concerns regarding costs in Q2? So I've shared some of this already earlier. There's inventory that we are carrying, which supported which was lower cost inventory. Some of this is getting replaced by inventory, which is at a higher cost. So some of the changes that you're seeing are because of that.

35:26 Also, product mix has undergone change. And as I shared earlier towards the call, agrochemical intermediates was even lower than worse than the previous quarter. So from that perspective, there's a change that has happened on the overall combination of these two has created the change in the overall EBITDA margin. All right, sir. And so you also highlighted that YP derivatives has an offset for this agrochemical weakness. So which end use applications are driving the demand? And how do you see the growth in terms of volumes, like, which is coming? Like, is it through value realization, or is it coming from volumes? So it's not just YP derivatives that has offset, but the entire basket of non agro.

36:18 As I shared earlier in the call today, the overall revenue of agro for H1 is sorry, Q2 has dipped down to sorry, H1 has dipped down to 35%, 65% is non agro, which was not the case earlier. The growth has been in all of our other areas, which are non agro, which includes Performance Solutions, YP derivatives as well as Contract Manufacturing. And in contract manufacturing, as we have shared earlier, some of our contracts one of our contracts is on a not on a basis of the pricing of the raw materials. So in that case, the top line and bottom line is accordingly adjusted. What was your question? Did it get covered? I wanted to understand, like, in terms of growth, like, how are we seeing that?

37:13 Is it because of the volumes or is because of the value realizations? So it's a combination of volume and value and, of course, the focus areas delivering the growth. Right? The three focus areas that we have mentioned, all three have become growth engines for the company, and all three have played a part in compensating for this quarter. Hopefully, this compensation will turn to its own engine of growth in the coming quarters and sustainable growth engine. Alright, sir. Okay. That's it from my end, sir. Thanks a lot. Thank you. The next question is from the line of Samar Singh from CPF Capital. Please proceed. Yeah. Thank you for the follow-up. Just one question on our... On the agro business.

37:59 You mentioned, you know, that we're still seeing headwinds in quarter three. One of our competitors come on and said that, they are currently seeing strong demand in October and November and lack of competition from China is helping that demand. So if you could so are we not seeing a similar setup? I will just get our CEO to respond to this question. Pradeep, yes? Yes. So as far as the agrochemical intermediates is concerned, it's a fact that shipping from China has become difficult. So to that extent, the it helps that the competition is restricted to domestic competition.

38:48 But as far as the full fledged recovery is concerned, we are not seeing it recovering full fledged into Q3. And here, one major factor which comes to play is that we have a much larger capacity in the agronomic chemical intermediates that we are talking about. We have a very large capacity. So reaching the full capacity utilization for us will take a longer time vis a vis someone who is having a lower capacity. So I hope that answers the question. And to add to that, Q3 anyways is a deep quarter for this because the post it goes into post monsoon. So just to help you understand a little better.

39:36 And how many domestic players are there in the deep space? So there are largely there are two players in this, right? Yes. Yes. Thank you. The next question is from the line of Prashant, an investor. Please proceed. Hi. Thanks for my opportunity, and I hope I'm audible. My question is Yes. You're audible. Yeah. My question is specifically to Mr. Rohitraf. You have a large investment in Cylock India Private Limited.

40:23 The market value of that investment could be, I guess, around INR 500 crores. And the dividend yield on that would be roughly around two, 3%. For a company that is looking for a growth and expansion plans, what are your plans to monetize and and cash this investment and use it for a more productive purposes. Hello? Yeah. You're audible. Just give me one moment. We will not be able to give any specific comments on this at this point in time. As and when appropriate decision is taken by the Board or it's taken by the Board at whatever point in time, we'll definitely communicate to you.

41:19 That is understood, Mr. Shroff. My point is keeping such a large amount with a dividend yield of two, 3%, specifically when you are targeting a ROCE of 15%. I... It is not a appropriate capital allocation policy. So fine. I mean, you may not give... I'm not asking for a decision right at the moment, but is it in the works? Have the... You and the management and the board thought about it? Have you taken any steps in this matter? If you can give a sense of direction, that will be helpful. Management and Board are both definitely aware of this because this gets reported to the Board every half yearly, it's reviewed as well as full year.

42:09 So both the management and the Board are very much aware of this. As I said specifically, I can't give you any response on what attempts have been made. But the awareness is definitely there, and it does get discussed. As I said at appropriate time, when the decision is taken, we will be happy to communicate that to the shareholders and also to address your specific questionconcern. Yes, the Board is also very much aware of this matter and seized of this matter. Yes. Okay. So can we expect it rather sooner than the later? That comment I cannot make. It is going to be a decision of the Board at the end of the day. As I said, the awareness is there. And of course, if an opportunity does arise, the Board will consider it. If there's an outcome from that, we will definitely convey the outcome to the shareholders appropriately.

43:06 I must also add that the business has done quite well over the last twenty five years. This particularly the last eight to ten years, what it reflects on our balance sheet has definitely gone up. And as I shared, the Board is aware of this. Absolutely. Silox has a turnover of 1,600 crores, 16% EBITDA margin, cash and balance of around $2.50 crores. So I think that would be a right opportune time to monetize and put it in our own business. Unless, I mean, we consider investment as our core activity. So, well, anyway, I mean, since you are since you have... I will go with whatever you have said, and we'll look forward to some better commentary in the coming quarters. Wish you all the best.

43:58 So I just want to add one comment that as far as the company's growth plans are concerned, we continue to pursue those. So we are not compromising the company's growth plans because of this investment. So I just want to definitely address that part of your question that the company is not impacted because of this holding. Yes, there are opportunities that we are seeing for our growth plans. We are funding it from largely from internal approvals as well as whatever is on our balance sheet today. And we have stated in the past that we'll continue to pursue and continue to invest in growth for Excel Industries. Absolutely. No doubt about that, Mr. Shah. It's just that, I mean, we once you if this kind of fund is available, like one of the earlier question was there, It could help you in enhancing shareholder value. You could think of a buyback, and that could do wonders to your, you know, market value, to your ROC, to your financial numbers, and it would give more wherewithal to the board and the management to pursue more operational opportunities.

45:03 That's all my limited point. Yeah. Thank you. Thank you. You've noted your point. Yeah. Thank you. That was the last question. On behalf of Excel Industries, that concludes this call. On behalf of Excel Industries Limited, that concludes this call. Thank you for joining us, and you may now disconnect your line. Thank you.