Indo Count Industries (NSE:ICIL) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to the Indo Count Industries Limited Q1 FY 'twenty seven Earnings Conference Call. This conference call may contain forward looking statements about the company, which are based on beliefs, opinions and expectations of the company as on the date of this call. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participants' lines will be in the 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.

0:47 I now hand over the conference over to Mr. Mohit Jain, Executive Vice Chairman. Thank you, and over to you, sir. Good morning, and a very warm welcome to all of you joining us for the Indo Count Industries Limited Q1 FY 'twenty seven earnings call. I'm also joined by group CFO, Mr. K. Moli Duran Manish Bhatia, our CFO and Strategic Growth Advisors, our Investor Relations advisers. We hope you had the chance to review the financial results and investor presentation available on the stock exchange and on our company website. Before I begin with the business update, I would like to take a moment to pay our tribute to late Mr. Kailash Lalpuria, who was an integral part of Indo Count and a highly respected leader in the textile industry.

1:42 For more than a decade, Mr. Lalpuria played a pivotal role in shaping the strategic direction and growth of Indo Count. He was instrumental in making several important strategic choices that has helped in building Indo Count into a strong institution. I now come to the business update. Q1 FY 'twenty seven marks a strong start to the year, achieving several important milestones. We delivered our highest ever quarterly revenue, reflecting the growing scale and momentum across our businesses. A particularly encouraging development has been the rapid scale up of our new business, which has nearly tripled over the past one year.

2:28 This demonstrates the strength of our diversification strategy and gives us increasing confidence in its contribution to our growth going forward. Importantly, our EBITDA margin is on a recovery trajectory, supported by improving operating leverage and better volumes across the business. While there are still some cost pressures as we scale, the underlying operating performance continues to strengthen. Our performance for Q1 is in line with our stated guidance for the year of INR 5,500 crores with approximately 13% EBITDA margins. Our U. S. Manufacturing operations also continue to perform well.

3:14 Overall utilization has remained around 60% to 65% despite the recent addition of our greenfield facility in North Carolina in January 2026. The ability to maintain these utilization levels while absorbing significant new capacity is a strong indicator of our capabilities. Overall, we believe these developments provide a strong foundation for sustained growth and improved profitability through FY 'twenty seven and beyond. Before I move to further details, I would like to highlight a couple of important developments that reinforce our confidence in the opportunity ahead. We recently participated in Bharat Techs twenty twenty six, India's largest textile trade fair and received an encouraging response from both global and domestic customers across our product portfolio.

4:07 We engage with distributors, direct retailers, LMS partners, corporate gifting and hospitality buyers. Another important milestone has been our continued progress on sustainability. Sustainable and responsible growth remains firmly embedded in our strategy with a strong focus on energy efficiency, responsible sourcing and integrating ESG principles across our operations. These efforts have been recognized through three prestigious awards by the Confederation of Indian Textile Industry during Bharat Techs twenty twenty six. These recognitions reinforce our commitment to building a business that delivers growth while creating long term value responsibly.

4:55 On a long term basis, India is firmly emerging as a preferred global sourcing partner with a strong track record in quality, innovation and delivery. The FDAs with The U. K. And EU, along with positive progress on The U. S. Trade deal, are creating a more favorable and level playing field for Indian textile exporters and are expected to accelerate the shift in global sourcing towards India. Let me talk about core business performance now. Our core business was impacted by The U. S. Tariff situation last year. We are now seeing early signs of recovery. Q1 FY 'twenty seven volumes stood at 23,000,000 meters compared to 20,500,000 meters in Q4 FY 'twenty six, representing a 12% sequential growth.

5:49 Volume throughput was impacted by container availability constraints arising from the West Asia Conflict. With the external environment stabilizing, we expect this momentum to strengthen through the year. Q1 volume should not be viewed as a benchmark for the full year as Q1 is typically a softer quarter for us, while Q2, Q3 are stronger, driven by The U. S. Festive period. Core business revenue stood at INR $8.37 crores in Q1 FY 'twenty seven, up 4% sequentially. The change in product mix impacted quarterly realizations. However, the underlying volume trajectory remains steady and EBITDA margins improved.

6:34 It is also important to highlight that quarterly realizations can fluctuate depending on the product mix. On a full year basis, however, we expect realizations to remain broadly intact. We remain confident of delivering our FY 'twenty seven volume guidance of 105,000,000 to 110,000,000 meters and core business revenue of approximately INR 4,000 crores. Non U. S. Core business. Our Non U. S. Core business contributed to approximately 30% during the quarter. The U. K. FDA restores a level playing field for Indian exporters, while the expected EU FTA will further open a large market on duty free terms.

7:19 Together with our existing duty free access to Australia, Japan, New Zealand and The Middle East, these arrangements significantly strengthen our global opportunity. As mentioned in the previous earnings call, we expect strong traction from Non U. S. Markets going forward and anticipate revenues from Non U. S. Markets to grow by 20% -plus in FY 'twenty seven. New business performance. Coming to our new business comprising utility bedding and The USA brand business, momentum continued to strengthen with Q1 FY 'twenty seven revenue reaching INR $3.87 crores. This performance was supported by established facility in Ohio and Arizona, the newly commissioned greenfield facility in North Carolina and the launch of Vansupta in July 'twenty five.

8:17 We remain firmly on track to achieve our FY 'twenty seven business revenue target of INR 1,500 crores. On an annualized basis, Q1 FY 'twenty seven revenue represents nearly 60% of our targeted US$275,000,000 new business ambition for 2028, providing a strong foundation for the next phase of growth. Update on our Bhilad plant. Our Bhilad, Gujarat manufacturing facility was temporarily impacted by heavy rainfall and flooding from 07/23/2026. The facility has partially resumed operations from 08/12/2026, with normalization expected in a phased manner.

9:03 A preliminary survey has been conducted by the insurance company's appointed surveyors, and the insurance claim process has been initiated. We adequately insured to cover the losses. To conclude, Indo Count is well positioned to capture the next phase of global home textile growth, combining trusted quality, sustainability, strong brands and increasing direct consumer connect. Looking further ahead, we remain committed to our INR 8,000 crore revenue aspiration by CY twenty twenty eight, supported by continued core business growth and our US$275,000,000 new business ambition. With this, I will now hand over to Manish to take you through the financial numbers.

9:51 Good morning, everyone, and thank you for joining Q1 FY 'twenty seven earnings call. I will first provide a brief overview of our performance, following which we will open the floor for questions. So quarterly highlights, Q1. Volume. Sales volume for Q1 FY 'twenty seven stood at 23,000,000 meters compared to 20,500,000 meters in the previous quarter, reflecting a 12% quarter on quarter growth, supported by an improvement in overall demand as the uncertainty surrounding user tariffs eased. Sales volume for Q1 FY 'twenty seven declined 3% Y o Y, primarily on account of container availability constraints, a temporary logistical issue that impacted dispatches. Total income. Total income for Q1 FY 'twenty seven stood at $12.24 crores compared to $10.88 crores in the previous quarter, registering a 13% growth, driven by higher volumes in the core businesses and continued scale up of new businesses.

10:45 On a Y o Y basis, the total income grew 27%, largely led by increasing contribution from the new business. EBITDA. EBITDA for Q1 FY 'twenty seven stood at INR 160 crores compared to INR 116 crores in the previous quarter, registering a 38% quarter on quarter growth, driven by improved operating leverage as utilization level increased across both the core and new businesses. The strong performance was partially offset by higher employee costs, primarily due to the commencement of operations at the Greenwood facility and the continued ramp up across other facilities. EBITDA margin improved by two forty one bps to 13.1% from 10.7% in Q4 FY 'twenty six. On a Y o Y basis, EBITDA grew 34% with EBITDA margin expanding by 74 basis points from 12.4% in Q1 FY 'twenty six, reflecting better operating leverage.

11:41 PAT for Q1 FY 'twenty seven stood at 63 crores compared to INR 24 crores in the previous quarter, representing a 2.5x sequential increase driven by improved operating efficiency, lower finance costs and reference of the one off GST refund related expense incurred in the previous quarter. PAT margin expanded by two ninety four bps to 5.2% from 2.2% in Q4 FY 'twenty six. On a Y o Y basis, PAT grew 62 with PAT margin expanding by 114 bps, reflecting stronger operational performance and improved flow through from the top line to bottom line. EPS for Q1 FY 'twenty seven stood at INR 3.19 per share. With this, I open the floor for questions.

12:31 Thank you very much. We will now begin with the question and answer session. Move your other question queue, you may press star and two. Participants are requested to use handset while question. Ladies and we will wait for a moment while the question queue is assembled. Thank you. We do have our first question from the line of Abhishek. Please go ahead. Yeah. Thanks for taking my question, and hope I'm audible. Congrats on the good set of results.

13:18 And my question was regarding the Billard plant. So you called out that there is some disruption to the operations. So I just wanted to know whether what is the impact on, you know, the... What would be the impact on the volumes considering that, you know, the plant has been closed for about, say, fifteen to twenty days now. And you also called out that q through... Q two and q three are good quarters. I assume that there'll be inventory with you. So considering the disruption operation, how do you look at Q3 and Q4? Is there any deferment in shipping the orders? Abhishek, on the Villaard facility, let me tell you that we are fully insured. We're slowly increasing our scale of operations in every department out there. Over the next couple of quarters, we are confident to serve each and every customer for all their orders.

14:15 So we'll should be able to make up our loss growth. Okay. So so you you were... So I assume that you were able to, you know, kind of offset the production loss in Villar, in your other plant? That's the endeavor. Okay. Okay. Okay. And just another bookkeeping question. So I see the other... Adantam has, you know, on Y and Y business, slightly on the higher side. So, like, what's the reason? Is some ForEx gain or something? What is on the higher side come again? You were not clear. Other income. Our other income is in line. If you see last year was INR 80 crores, right now it's INR 20 crores.

15:04 Okay. Okay. I might have missed something. Sorry. Yes. I'll get back into the queue. You. Next question is from Raman Kevey from Sequent Investment. Hello, sir. Can you hear me? Hello? Yes. Yes. Sir, I just have two questions. One is I just want to understand what's the margin difference across our core business, which is redlining versus our new business, which is, like, utility bedding and branded business? How much of a margin difference these two businesses have there?

15:50 No. As we have mentioned, Raman, that our objective, once our utility bedding business achieves full scale, we expect to do 15% also on the utility bedding business. Of course, as we scale up more than our new greenfield project has just started, so any new facility that starts, there's a time gestation period. So keeping that in mind, that's why the margins on that facility is on the lower side. But otherwise, our bed linen business, you can get a respective idea from our stand alone numbers. So we've done slightly better than 15% in this quarter. But over a period of time, we expect both businesses to do similar margins. So bed lining and utility business are like a 15% margin business. So my assumption is a branded business should be a much better higher realization business. So will is there any margin difference?

16:51 So again, as we mentioned, I just want to be clear that from a long term perspective, we expect our bed linen business to do 15. We expect our utility bedding business to do 15%, and our brand business should do 100 to 200 basis points better than 15%. Understood. Yes. That was my main thing. And second second question is from the revenue perspective, how much I knew was from USA during this quarter versus last quarter? From the new business or from The U... I did not follow-up. Overall. So I was asking on a consolidated basis, how much revenue was from U. S.

17:38 During this quarter versus the last quarter? So I can tell you our core business, 70% of our revenue comes from The U. S. And 30% comes from non U. S. Countries. And the new business is all U. S. So the INR $3.87 crores is all U. S. So you can do the math. Understood, sir. Thank you. I'll just join back in the queue. Sure. Thank you. Our next question comes from line of Navin Bhatt from Bugwana AM. Please go ahead. Thank you. Thank you for the opportunity. I just wanted to sort of clarify whether there was any tariff refund in the quarter and how did it be accounted for?

18:28 There's no tariff refund in the quarter, Navin, at this point of time. Our next question is from the line of Ken from All Accurate Advisors. Kalash Jan, please go ahead with your question. Hello, am I audible? Yes. Yes. Yes. So thank you for the opportunity, sir. So so like as you mentioned in an initial remarks, right, there was some container issues in 1Q.

19:17 So how is the situation now? And like, are you confident of volumes shipping how would be volumes in the next two, three quarters? Yes. So as we speak, we are confident of achieving our guidance of 105 to 110,000,000 meters and INR 4,000 crore revenue. The container issue continues. Okay. And on the new business, so 2Q and 3Q are usually stronger for the new business? No. The new business is very new for us. So it will take us some time to get the what's the variability in the business. From a core business perspective, I would say that Q2 and Q3 are historically been the higher quarters.

20:07 Okay. So you expect this run rate to continue in the next two, three quarters? What run rate? The $3.70 crores that we have done in the new business. So for the new business, we've given a guidance of INR 1,500 crores for the full year. So we should be able to be on track for that. Thank you. Our next question is from the line of Bhavin Chera from Inaam Holdings. Please go ahead. Yes. Good morning, sir. Overall, very good numbers and very strong guidance also in the presentation. Sir, a few questions. First, to continue on the tariff refund, though you said that there's no tariff refund in the quarter.

20:58 Can you guide us whether you expecting any tariff refund, any filings made or any filing made by distributor on client for the goods supplied by Indo Count? And how the discussions are going around with the clients on the same? Sure. So we do not expect any material financial benefit from the potential U. S. Tariff refund, Bhavin. Nearly 80% of our exports are on FOB basis where the tariff is borne by the importer. As the process is still evolving and discussions with customers are going on, it would be premature to quantify the amount or the proportion that might ultimately come to the company. In our view, we'll have a greater perspective and clarity by the end of the year, and we'll keep all the investors updated on the same.

21:48 Sure. So my second question is on the bed linen realization was $3.57 a meter, which I see on a Y o Y basis was just higher by 1.5% despite rupee depreciating by over 9%, 10% and tariff coming in Q1 much lower than what it was last year, why we don't see it getting reflected in rupee realization because even assuming dollar realization being same. So has there been an impact of product mix or we are still to take price hikes upon the clients? So we have seen an impact on product mix in first quarter. But as I've mentioned that look at our realizations on a yearly basis. So on a yearly basis, we'll be absolutely fine.

22:40 And as far as your question on price increase, as we had mentioned last year last call also that, of course, as we are aware that post as the war took place in February end, sorry, all raw material prices have gone up. So on a case to case basis, we won back to all our customers, and we've concluded all our price conversations. So those impacts will come from Q2 Okay. So in the rupee terms, we'll keep on seeing price improving as the impact of the client negotiation that comes in through, right? Yes. Yes. Right. And my last question on the non U. S. Business.

23:26 Obviously, the U. K. Tariff, FDA has come through. So how much of the business we have in U. K. And how we are seeing on the client interaction whether clients have started sourcing more? Has there been new client inquiries, if any update on that? Because we obviously will have 9% to 10% benefit there now. Correct. Our U. K. Business is anywhere has been between 810%. Having said that, we have a very active office in The U. K. With the team there. And our interactions has let's say, we were interacting with a client, I'm making it up four times in a year, that interaction has gone up 8x in a year. So the interaction, whether it's The U. K. Or The EU has gone up, whatever we've seen from the past with FTEs, it's not that it's not a switch on and off, right? As soon as the FDA has happened, something happens dramatically the same quarter or next quarter. It takes to, I would say, twelve to eighteen months to pan out. So we are seeing that visibility going forward on the positive side. Sure. And obviously, you've also given a guidance of over 20% revenue growth you are seeing in the non U. S. Business. So is that partly reflecting new business in U. K. Plus EU area?

24:51 Absolutely. Those countries and other parts of the world also. Thanks a lot and best of luck, sir. Yeah. Thank you. Sorry to interrupt. We'd like the next question from the line of. Please go ahead. Good morning, sir. This is. Congrats for good set of numbers, and thanks for the opportunity. Sir, I have one question. Your stand alone EBITDA margins for this quarter, it has improved to 40 around 30.9%. So if we look into the pre tariff, it has been your stand alone EBITDA margins was around 14% to 14.5.

25:37 Going ahead, considering the fact that there are certain supply disruption and the cost has gone up. Also, this Belar facility, which was nonoperational for around twenty days. So considering that, should we expect some decline in margins in quarter two, quarter three on stand alone at stand alone level? Hello? Member of the management team? Yes. Yes. I can hear you, ma'am. Yes, sir. Please proceed. Yeah. Kostu, can you hear me? Yes. Yes, sir. Yes, sir. Yeah. Yeah. So what I said is that I'll not be able to guide you at such a precise level, but our endeavor is to maintain our 13%, blended margin on a consolidated basis. So look at it from that perspective, some quarters here and there, little bit does not matter. So for the full year, that's our endeavor.

26:40 Right. Sir, just from the understanding point of view, are we expecting any onetime losses because of this disruption what you have seen in the Pilar facility? Anything on that front, if you could help us? Sure, sure. No, all our facilities are adequately insured, whether it's for property, whether it's for inventory, whether it's for loss of profit. So as a company, we are adequately insured in all our locations, including Vilard, of course. We'll leave the next question from the line of from Swan Investments.

27:28 Please go ahead. Good morning, sir, and thank you for the opportunity. Sir, just one question, which is on a new business. So on the new business, other than the branding and utility, can you throw a light how are the branding and the licensing brand business doing? And have you seen Q1? And how one should see a ramp up over there? So our endeavor is to do around $100,000,000 over the last next three years in that business. And right now, split remains twothree of our revenue coming from our utility bedding business, which is a manufacturing business, you can say, and onethree of the revenue coming from brands. On the branded business, we are selling not only what we produce, so we are selling all soft home textiles, which includes towels, bath mats, window treatments, rugs, utility bedding, which is pillows, mattress protectors, downhole comforters, bed linen, coils, comforters, blankets, clothes, so a whole gamut of products.

28:35 So our expectation is that in the whole year, we'll do around INR 500 crores in this business. And then this quarter, we've done slightly above INR 125 crores. If you look at onethree of INR $3.87 crores roughly. So it's going in the right direction. And as we had mentioned, that Vansut also we launched just a year ago now, if you think about it, and it's it's slow and steady, but the building blocks are there. Sure, sir. And brand business, 100 to 200 is better margin than our existing business, 15% that's what we are guiding. Once we get to 100,000,000, that's when that will trigger. Because right now, there's a more... We have the whole team in place. There's more investment going in to build... These are very new businesses. So I think it's commendable for the company to be able to build a 1,500 revenue in less than eighteen months.

29:30 Okay. So that's coming in the back. And on this investment also, are we looking at further investments on the enterprise upfront in terms of the growing our business to 200,000,000 or probably the investment is already done? I mean there would be some balancing investments. There's always it's not 100% done, but I would say 70%, 75% is in place here. Yes, sir. That's it from my side. Thank you. But I mean, it's an evolving economy, evolving business. We are also learning as we are moving forward. Thank you. We'll move on to the next question that is from the line of from Asian Market Securities.

30:15 Please go ahead. Hello, Ashwada. You'll... Yes, ma'am. Please proceed. Yeah. Hi. Congratulations on a very resilient performance. Two questions. First is in terms of our utility bedding business. How should we look at the ramp up of utilization over the next two, three quarters? And then I have a follow-up. Sure. So for utility bedding for this year, our endeavors to be 60% to 65% utilization. Our new facility just came on stream somewhere middle of January. So even keeping that in mind, we were able to be around those utilization levels in Q1, and we think we should be stable around these levels for the rest of the year also. So for the full year, you should look at sixty sixty five percent.

31:10 But why is that the case if we've already achieved 60%, 55% utilization in 1Q? So I will not be able to further... No. That's true. But for the next nine months, I will 20%, then you would have asked me why 20. No. If you've done 60, 65, you're asking me why. So, I mean, you know, there can be ups and downs in businesses. So at this point of time, if you're able to do 60, 65, we are very satisfied. You know? And that's that's the level that we'll be at. Right. And in terms of input cost inflation, have we been able to pass on that to the dealers in The U. S. On the utility side? Yes. Because you know the utility bearing business, we are competing with facilities or competitors within the country. So everybody is at the same level playing field.

32:01 And what is the ratio between cotton, non cotton for our utility business? It's a mixed basket, depending on the customer trends, what customers are looking for. A lot of these are performance based fabrics. So we use products in nylon, polyester, stretch fabrics, mix of cotton with these. So it's a whole gamut of products. And we have a global sourcing team in place. We have an office in Shanghai with people there. So they do global sourcing. And depending on the product, raw materials are sourced accordingly. No. So which is why, I mean, we've seen a higher input inflation in non cotton based products because of the Middle East crisis. So to what extent have we been able to pass on that inflation to customers?

32:49 We're able to pass that on. I mean, there could be some laggard effect of two, three months here and there, but otherwise, it's passed on. You know? Then it's not... It's it's something consistent, and there's enough value engineering that can be done on the product also. Okay. And the other question is in terms of the core business, the branded portfolio in the core business. So like the new business, you said that you are sourcing from other players as well, and it's not only own manufacturing that we supply. So within the core business branded portfolio also, do we source from other players? Or is it just our own production that we supply in the branded mix? Out of the core business, it's only our production, if that's your question. So just bed linen and that to our manufacturing, nothing sourced from outside.

33:39 In the core business number? Yes. Yes. Correct. Correct. Correct. We manufacture bed linen, quills, comforters, utility bedding, all of that is here. Right. And how should we look at the core business branded mix margins vis a vis the non branded margins in core business? So I just want to clarify one point. So for the four brands that we have, which is Vamsuta, Fieldcrest, Waverly and Gayam, which are our four, what we are classifying as a U. S. Brand, any business that is even produced at a facility in India at Indo Count is the meterage comes in the overall meterage, but the revenue is captured in new business, okay? The rest of the business, when we are declaring that our overall business mix, 20% is a branded portfolio, a lot of those are our house brands that we will be selling on e commerce, on Amazon, Wayfair, Overstock, other platforms. So there, the blended margin of the core business remains at 15%.

34:51 No. So what I'm trying to say is that new business comprises of two segments, right? One is your utility and the other is branded. That branded business sourcing is from other countries, other players. But in your core business, branded business, the sourcing is from your manufacturing only. Correct. Correct. So, again, just hear me out. In our in our branded business Mhmm. Let's say if you are making a... If you are selling a towel or a curtain, which we do not produce at Indo Count, those are sourced from outside. But if you are selling a bedsheet, that is sourced within our own company from a manufacturing facility than Kola or a Villard, and that number is coming under the new business under brands.

35:37 Got it. So in your total 30% branded business, how much would be sourcing from outside? We've said our total branded business is 20%. 20%. Yes. Irrespective of anything. And our total brand business this quarter has been roughly around INR 125 crores. So 10% is under these new brands, if you take it as a part of the whole company, roughly. Got it. Got it. Okay. Thanks for this clarification. Thanks. Thank you. The next question is from the line of Saranj Gupta from Swan Investments. Please go ahead. Thank you for the question, Lisa. So I just wanted one clarity.

36:22 So as India's relative tariff position in The US is improving, so how are we positioning Indo Count ahead of the upcoming trade agreement? Like are we seeing customers shifting towards India? And is there a bigger opportunity that is available for market share gain? Or still there would be a price mix? See, India is extremely well positioned. Even at 50% tariff, we as a company did not lose a single order or a single customer. So now with at 10%, India as a country is extremely competitively placed. Having said that, even all our neighboring countries, everybody is between 10% to 12.5%. So nobody is at a major disadvantage or an advantage, let's say. China, erstwhile has a three zero one tariff, which has been there in 2019.

37:14 So that has always remained there. From our product category perspective, we are really not competing on those product categories at this point of time. So today, mean, our product category of bed linen, I mean, home textiles, I would say, in general, India is extreme was extremely well positioned and continues to be extremely well positioned. We'll move on to the next question that is from the line of Raman K. V. From Sikan Investments. Please go ahead. Hello, sir. Thank you for the follow-up. I just have one question. Sequentially, our interest cost has declined. Have we repaid any or any any of the borrowings or have we refinanced the existing borrowings?

38:05 Going forward, what will be the interest cost for the year? In Q4, we had a onetime hit of around 13 crore on a GST issue that has been taken. It's not there in Q1. So that's the only change. Otherwise, our interest cost remains flat more or less. So around INR 70 of interest payment will be there during this year. 70 to 80 crores. Right? Yeah. Same deal. Yeah. And if I can ask, can you... What's our weighted average cost of debt? Raman, I mean, our interest cost, we are at a 30 crore run rate per quarter. So we are not a 120 crores, not 70 crores. Yeah. Sorry. Sorry. Yeah. Yeah. 120.

38:54 My bad. So what's our interest cost? Right? Depends bank to bank. You know? Mean, but we are competitively... We are... We have a rating of a plus, and we are competitively priced. You know? I mean, we cannot tell you our exact cost because it will change from bank to bank. Between 6% to 7% should be roughly range. Understood, sir. Thank you. Thank you. The next question is from the line of Pranav Malhotra from Starship India. Please go ahead. Yeah. Hi. Thank you for the opportunity. Yeah. My question pertains to the margin. Basically, do we see 15% as the ceiling? Because, you know, if you're going towards branded and also chasing, like, ecommerce, I believe on Amazon, as you've mentioned.

39:48 So do we believe that we can break through the 15% or is that going to be a ceiling? Pranav, we don't have any ceiling in our mind. I mean, we have to take one step at a time. So we're coming through a tough tariff situation, and so we are at least... Sorry, this is for the long term, I'm asking, like not just for this year? No. So for long term, you can say, right now, our target is to stabilize at 15% to 16% margins as a company as a whole. And we'll keep recalibrating this as we move on and we understand more as to how the business is progressing, how markets are progressing. Okay. So thank you so much. And just one question on The U. S. Ground situation. Like we had read that the retail sentiment has been improving, and we believe that we can do better numbers, like, in the macros.

40:45 So do we also view that in the core volumes, like, 110 meters, we can exceed that? Or, like, you know, as, like, obviously, as... That we see development throughout the year? At this point of time, we are comfortable with 105,000,000 to 110,000,000 meters, keeping in mind that the customer offtake will be on the positive side. Ladies and gentlemen, due to time constraint, we take that as our last question. I now hand the conference over to the management for your closing comments.

41:54 Thank you, everyone, for joining us today. We hope we've been able to address all your queries. Should you have any further questions, please feel free to get in touch with SGA, our Investor Relation Advisors. Thank you once again for your continued interest and support. We look forward to connecting with you on our next call. Thank you. Thank you, members of the management team. Ladies and gentlemen, on behalf of Indo Count Industries Limited, that concludes this conference call. We thank you for joining us, and you may now disconnect your lines. Thank you.