Kanpur Plastipack (NSE:KANPRPLA) Q2 2027 Earnings Call

0:01 Ladies and gentlemen, good day, and welcome to Kanpur Plastipack Limited Q2 and H1 FY 'twenty six Earnings Conference Call. As a reminder, all participant lines will be in the listen only mode, and there'll be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. I now hand the conference over to Mr. Vinay Pandul from Captify Consulting IR. Thank you, and over to you, Mr. Pandul. Thank you, Nirav. Ladies and gentlemen, on behalf of Captify Consulting Investor Relations team, I welcome you all to the Q2 and H1 FY 'twenty seven earnings call of Kanpur Plastipack.

0:50 Today on the call from the management, we have with us Mr. Manoj Agarwal, chairman and managing director, and mister Shashank Agarwal, deputy managing director. I would now request the management to brief us about the business and performance highlights for the period ended September 2026, the growth plan and vision for the coming year. Post which, we will open the floor for Q and A. Over to the management team. I welcome you to Kanpur Plastipack's earnings call for the second quarter financial year twenty six-twenty seven. Thank you all for joining us today and for your continued trust and confidence in the company. On behalf of Kanpur Plastipack, I extend a warm welcome to all our investors, analysts and stakeholders to our earnings call for the quarter and half year ended 09/30/2026.

1:37 Building on the strong start we made in the first quarter, Q2 financial year twenty seventeen has been another quarter of healthy growth for the company. Revenue for the quarter stood at INR235 crores, the highest quarterly revenue in the company's history and profit after tax more than doubled year on year to INR15.1 crores. Compared with the first quarter, EBITDA grew by about 14.5% and the profit after tax by about 24%. This performance reflects the resilience of our business model, the confidence of our customers and disciplined execution by our team. The global business environment remains challenging during the quarter.

2:24 Polypropylene prices moved back close to the high levels seen in March 26 owing to the continued geopolitical situation in The Middle East. High energy costs in Europe continue to weigh on the chemical industry, one of the few users of FIBCs, particularly in Germany. Although ocean freights eased during the quarter, they remained elevated and constrained container availability continued to disrupt supply chains. Despite these headwinds, our diversified export presence, long standing customer relationships and agile approach to procurement enabled us to deliver a robust growth in profits. Our focus remains unchanged. We continue to execute our long term strategy of strengthening the quality of our business while creating new avenues of growth.

3:15 Rather than pursuing growth purely through higher volumes, we remain committed to improving our product portfolio, expanding into value added applications and building capabilities that support sustainable profitability over the long term. FRPLA remains the cornerstone of our business, contributing approximately 66% of our manufacturing revenue for the quarter. Over the years, we have built lasting relationships with customers in international markets, which has helped us maintain a stable business through changing market conditions. Our customer base across Europe, North America, South America and other markets gives us resilience and a broad base for growth.

4:00 Our continued participation in international trade fairs has strengthened our inquiry pipeline and helped us expand our reach into new markets. As informed earlier, the capacity expansion of the FIBC to add about 6,000 metric tons per annum in phases over five years and take the total capacity to about 24,000 metric tons per annum remains on track. Production has already started on the Ground Floor of the new building at Unit 3. The 1st And 2nd Floors are now expected to be completed shortly. Our joint venture with SC Goma Italy through ACKANPRPLAY Limited continued to build its presence in premium Tascalan yarn segment. The internationally recognized certification, global recycled standard also for GRS and OEKO TEX which strengthen our positioning in markets, enhance customer confidence and support value creation.

5:00 These certifications are marking a significant milestone in our journey towards sustainable innovation, superior quality and global competitiveness. The response received from the customers has been encouraging and we are confident of scaling up sales in the next half of the financial year. Our entry into the non woven textile technical textile segment remains one of the company's key strategic initiatives. We see significant long term opportunities in this business across automotive interiors, geotextiles, artificial leather, carpets, footwear and other industrial applications. Despite slight delays due to heavy rains, we remain on track to commission the nonwoven fabric facility in this current quarter with the first line expected to be commissioned by the 11/15/2026.

5:55 Once operational, this business is expected to gradually become an important contributor to our growth while complementing our existing packaging portfolio. Together with our investments in premium polypropylene yarns and specialized applications, it reflects our vision of transforming Kanpur Plastipack into a well diversified industrial packaging and technical textiles company, expanding our addressable market while also improving product differentiation and value addition. Our entry into this spaces will also open up opportunities in select B2C linked applications and further diversifying our business model. Sustainability remains central to the way we operate. During the quarter, about 52% of our power requirement was met from renewable sources.

6:45 We continue to strengthen our ESG practices through responsible manufacturing, energy efficiency, recyclable product designs and internationally recognized certifications. Overall, while near term market conditions may continue to see volatility, we remain confident in the strength of our business model, our customer relationships and the strategic investments we have already made. Our objective remains clear to build a stronger, more diversified and future ready organization capable of delivering sustainable growth and long term value for all stakeholders. With that, I would like to invite our Deputy Managing Director, Mr. Sashank Agarwal, to take you through the operational and financial performance in more detail.

7:33 Thank you, everybody. Thank you, and good afternoon to everyone joining us today. As the Chairman highlighted, we have continued the momentum of the first quarter into Q2. Let me briefly take you through the financial performance for the quarter. For the second quarter of FY twenty twenty seven, on a stand alone basis, despite a very challenging global environment, the company reported a total income of INR $2.38 crores, reflecting a growth of about 43% year on year. EBITDA for the quarter stood at INR 25.4 crores, registering a 55% growth year on year. The margin improved from 10.67% to 9.83% in the corresponding quarter of the previous year, broadly in line with 10.69% in Q1.

8:21 PAT stood at 15.10, almost doubled on a year to year basis, while basic earnings per share increased 6.16 compared to 3.25. For the half year ended September the total income stood at 445.64, up by 28%, EBITDA at INR 47.59 crores and PAT at INR 27.25 crores, more than double of INR 13.07 crores of H1 FY 'twenty six. Basic EPS of the year stood at INR 11.11 compared to INR 6.26 in the corresponding period. On a consolidated basis, total income for the quarter was INR 240.22 crores and PAT at INR 16.06 crores, up by 100% year on year.

9:13 Export realizations remain strong. Export sales were INR 119.81 crores, marginally higher than INR 119.16 even though the export volumes were lower at 4,757 tonnes against 6,591 tonnes. During the quarter, realizations continue to remain strong with an average selling price increasing by 14% compared with the previous quarter. PP prices rose again during the quarter towards the which was seen towards the end of March twenty six, but our pricing discipline enabled us to largely pass on the increase in the input costs. As a result, Manufacturing segment margin improved to 11.65% from 8.95% in Q1 FY 'twenty seven and six point three four percent in Q2 FY 'twenty six.

10:08 This, coupled with our disciplined procurement strategy and improved product mix, contributed to stronger margins during the quarter. On trading, segment revenue was INR78.96 crores compared to INR 16.87 crores in Q2 FY 'twenty six. The company reported a trading profit of INR 1.16 crores compared to INR 0.59 crores in the corresponding quarter of the previous year. As I mentioned earlier as well, timely focus continues to remain on our core manufacturing business, given our understanding of the polymer market and established procurement capabilities, selectively capitalize on opportunities arising from market dislocations globally, price volatility, wherever they align with our risk management framework.

10:58 On the other operating incomes other incomes. Other operating incomes for the first quarter was INR 13.11 crores, of which INR 12.4 crores was export incentive under the DFIA scheme against INR 2.64 crores in Q2 FY 'twenty six. Since DFIA income is recognized on realizations of the licenses, it varies significantly from quarter to quarter. Also, this was suspended in quarter one FY 'twenty seven by the Government of India. Other income for quarter was INR 3.52 crores, which includes foreign exchange gain of INR 2.24 crores.

11:48 Other income for half year was INR 7.85 crores, of which INR 5.57 crores was a net gain on foreign exchange. As an export oriented company, a large part of our receivables are in foreign currency, and the gain reflects the exchange rate movements during this period. We treat this as linked to our export business, but it depends on currency movements and should not seen as a recurring trend. Higher employee cost. Employee benefit expenses for the quarter stood at INR 21.41 crores, an increase of about INR 4 crores or 23%. As I explained in the last quarter, this primarily reflects the annual salary revision and increase in minimum wages in line with the state government's revised wage policy.

12:35 This also includes the Directors' Commission increase due to higher profits as compared to the corresponding period. Compared with Q1 FY 'twenty seven, employee costs were broadly stable. While this has increased our operating costs, the company continues to implement focused initiatives around cost optimization, operational efficiencies, productivity improvements and value added products to mitigate the impact and sustain healthy margins going forward. Borrowings. On the debt side, total borrowings as on September 30 stood at INR 162.61 crores, out of which INR 39.76 crores was long term borrowing. And the balance, INR 132 crores short term sorry, 132 crores was the total borrowing on June thirty six, and the long term stood at INR 22.83 crores at that time.

13:32 This increase is due to new term loan for our nonwoven project. Our net worth stood at INR 290.56 crores and debt equity remained at 0.56x. The increase in borrowings during the half year was driven by capital expenditure. The capital work in progress rose by about INR 37 crores during the half year to INR 45.67 crores as an ongoing projects move towards completion. Jet Bank has sanctioned a term loan of INR 40 crores for these projects, out of which INR 27.38 crores has been availed as on September 30. Higher receivables. Trade receivables increased by INR 26.32 crores to INR 120.6 crores, in line with the higher selling price.

14:19 GST refunds and other current assets increased by INR 11.19 crores. IGST refunds of INR 12.64 crores were receivable as on September 3026. Exports and product mix. Exports continue to be the backbone of our business. During the quarter, Europe contributed 65% of our geographical mix, followed by North America at 17% and South America at 14%, the balance coming from Australia, Asia and Africa. The diversified geographical presence helps us mitigate regional demand fluctuations. Based on product based revenue mix, FYBC grew from 60 from... Grew to 66% from 54%.

15:07 Fabrics shrunk from to 18% from 20%, multi filament remains stable at nine percent from 8%, UV Masterbatches, small bags and geo fabrics all remained under 3% in this quarter. From an end user perspective, our revenues remain well diversified across food and agriculture, industrial packaging, construction, automotive and mining, reducing the concentration risk across demand vehicles. Coming to the projects update. Against the total project cost of INR 106.9 crores, we had incurred INR 78.86 crores or about 74% up to October 2026. Some activities have taken longer than planned, mainly because of exceptional heavy rainfall in Kanpur during the monsoons and also machine commissioning issues related to overseas visa regulations.

16:08 FYBC capacity expansion was updated was the update was given by the Chairman. Nonwoven technical textiles, needle punching machine and was received in August 26 and commissioning of the first line is now complete is expected to complete by November 15 within our Q3 FY twenty twenty seven target. Civil work was held up initially due to the heavy rainfall and then the late arrival of the suppliers' engineers. The project is slightly delayed but within our targeted schedule. Role management system and warehousing, the building for this shall be completed between fifteenth and thirtieth November. The warehousing for trading division for IOCL has already been completed. On the manufacturing front, we continue to invest in automation, process optimization, infrastructure dewaterlinking across our facilities to improve productivity, quality consistency, operational efficiency and agility in the lead time.

17:09 Valex Ventures, as we had indicated last quarter, our U. K. Subsidiary regained its profitability regime in Q2 FY 'twenty seven after a small loss in Q1, supported by customer supplies scheduled after the implementation of the free trade agreement and structural changes that have been undertaken there. Order book and outlook. During Q2 twenty seventeen, the order book and demand was affected by a couple of factors. First, the polymer prices historically remained at the highest levels. At these prices, customers are reducing their inventory levels. Second, the energy crisis in Europe caused by shortage of oil and gas has driven up power costs and hit industrial activity, particularly the chemical sector in Germany.

18:02 Europe is our largest market accounting for almost 65% of geographical mix. And the weakness in the European demand remains our area of concern going forward. The third factor was the early weather conditions that affected agriculture output and also fertilizer demand in agriculture based economies such as Brazil, reducing the demand for bulk packaging in these segments. Fourth, the ocean freight cost remains high and container availability at Kanpur ICD was also affected during this period. This raised the landed cost of our products for overseas buyers and had led some customers to defer purchases. We continue to issue regular market advisories to our customers to enable timely commercial discussions and fair pass through of cost increases.

18:50 We do see some easing out on this front. Our diversified customer base across Europe, North America, South America and markets with long relationships give us resilience during these tough times. Despite lower volumes, our focus on realizations and improved product mix helped us to continue with the profitability. Customers are buying closer to their immediate requirements. Most of our order book continues to be for dispatch within a month, consistent with the demand visibility of three to four weeks as mentioned earlier. We have seen a slight dip in the average order quantity during this period. Looking ahead, we expect these conditions to persist in the near term and volumes in the quarter may also remain affected. We are monitoring demand extremely closely, particularly in Europe and remain focused on protecting realizations, managing working capital carefully and widening our customer base.

19:49 At the same time, FIBC capacity expansion nears completion, the completion of nonwoven facility and our continued focus on value added products and new markets, we remain confident about our medium to long term prospects of the business. We are also exploring inorganic growth opportunities both in India and overseas to strengthen our market presence, customer base and product portfolio. While we are actively scouting suitable opportunities, nothing material is visibly present today. We will remain selective and financially disciplined, focusing on acquisitions that create long term value for our shareholders and fit well into the culture of the organization. With that, we conclude our opening remarks.

20:36 Thank you once again for joining us today. We would now be happy to take questions. Thank you very much. We'll now begin the question and answer session. Anyone who wishes to ask a question, may press star and 1 on your telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question is assembled. Participants, you may press star and 1 to ask a question. First question is from the line of from CAO Capital. Please go ahead.

21:26 Hello. Am I audible? Yes. Thank you very much for the opportunity, and congratulations on very good numbers. So especially, I was very positively surprised with the inventory and the receivable numbers. They did not spike disproportionate to the revenue given what what all has happened in the... On the raw material side. Sir, the three months during the quarter were all very different. Right? The the raw material costs were all over the place. So can you provide some commentary what happened when the prices corrected and then the prices again went up? I'm I'm looking at the crude prices here, so I'm assuming that the prices were also all over the place. So did you see any particular challenges? Is supply...

22:13 Is there any supply bottleneck in terms of market share surprises? That is my search. And second, a broader question. So over the next few years, can you give the effective increase in your capacities across all product lines now in terms of actual numbers, volume numbers? Yeah. So I think the easier one first, which is the capacity expansion. So if IBCs are currently the capacity is about 18,000 tons, and we plan to move to 24,000 tons over the next five years. Nonwoven, the capacity will be around 12,000 tonnes a year. This capacity will be visible only in the next financial year because half of this capacity is going to come up in this quarter and half of this capacity will come up by the end of the next quarter.

23:04 On the multi filament side, the yarn business, the capacity is 10,000 tons a year as well. This used to be about 7,000 tons and due to this expansion, this is around 10,000 tons. On the geotextile front, the capacity is around 2,500 to 3,000 tons. On the polymer side, yes, we did see a dip in July when there was surplus of polymer mainly due to the softening of the war situation during the at Hormuz and the government regulation on LPG production going away. But then by the time September came, this all started coming back again as it was the case in end of March. So yes, you are absolutely right. We have seen extreme volatility during this quarter.

23:53 And yes, despite the troubles in the freight and despite the inventory buildup that is there, we have been tried we have tried to remain extremely disciplined with our inventory. And our long term relationships with our customers have helped us to keep the receivables in line. Sir, this volume destocking that you talked about in your opening remarks, to what extent it has already happened to channel inventory, how much of it has gone down by? And if, let's say, world resumes Can you can you please repeat again? Sir, you said that your customers are destocking because of the high prices and anticipate... In anticipation of lower prices. So how much of that destocking has already happened? So let's say the peak peak numbers were.

24:51 Anurag, we are sorry. We are losing out of your... Can you repeat your question once again, please? And can you talk about the reception area? Sir, am I am I? No. It's still breaking terribly. Hello? I think I have question, so I'll try to answer it, and then if something is left, then you can please ask. Sure. I mean, if the capability to destock is, let's say, a 100, our understanding is that they've been able to destock by about 40 in the previous quarter, and we are expecting that they would destock by another 30 this quarter. Okay. Okay. Okay. Understood. So even after such a large amount of destocking, you have seen reasonably good volume growth. Right? And so It is... Volume growth is not visible.

25:38 Our manufacturing volume has actually gone down. Okay. Okay. Okay. Okay. I I understand that. Okay. Okay. So so, Pradip, this continues for one more quarter. After that, sir, do you think there will be further? Because they, like, destock further. There would be a bare minimum that that the channel generally keeps, right, for normal operations. We are in extreme volatile situations. We do not know what will happen Understandable. In the beginning of next week. We do not know how the world will escalate. We do not know how long the energy crisis will go. We are unaware of how the winters will go. What is in our control? We are very confident of that. That is consistency and discipline. And we will continue to remain extremely disciplined and consistent.

26:27 Right, sir. Thank you very much, sir. Thank you very much. The same. Obviously, the relationship really comes out during this period. So our customer relationships have been very strong. We are receiving record number of customer visits during this period. We have made a record number of customer visits during this period. So relationship is getting stronger. Understood, sir. Thank you very much, sir, and thank you for explaining everything, sir. I was missing a couple of points. You clarified everything. Thank you very much, sir. Thank you. All the best, sir. Thank you. Participants, you may press star and one to ask the question. Next question is from the line of Vishvender Singh from Prudent Equity. Please go ahead.

27:22 Hello?, can you please unmute your line and proceed with your question? Hi, sir.. Yes. Sir, that has been gone significantly higher. So what sort of peak debt are you looking at to end with this year and next year post the CapEx commission? Sorry, I have not understood the question. Could you be a little louder and clearer, please? Is it better now? My voice is better now. So what sort of peak debt are you looking have a debt to equity on our books for FY 2027 full year and FY 2028 post the commissioning of the CapEx? I'll just hand it over to CFO to answer the long term debt, how much it will be, but the short term debt is basically based on the raw material price increase.

28:15 And if this remains the pricing at what it is today, we should be increasing our debt on the same number of days worth of revenue and inventory. But on the long term, see if he's going to answer that. So as already announced in the last quarter that we are going to increase a new project in which we are taking INR 40 crore of loan, out of which we have already taken near about INR 27 crore of loan. The peak debt will be 40 near about INR 40 to 45 crore by the end of this year. Got it. And on the expansion part, you mentioned that you had some delays due to monsoon and other construction activities. So post the commissioning, what sort of top line growth are we looking at in FY 'twenty seven, FY 'twenty eight, sir?

29:06 FY 'twenty seven, FY 'twenty eight for nonwoven are the targeted revenues Can you please repeat, sir? Your voice over the letter from us. Nonwoven revenue expected in FY 'twenty seven, 'twenty eight is between INR 100 crores and INR 120 crores. And on the margin side, you mentioned about 14% to 15%. Are we seeing a pressure? No, that's the expectation. Okay. On FYBC, what sort of additional revenue would you be seeing from that segment, sir? Sorry, I can't understand. Sorry. Sir, FYBC CapEx segment, CapEx in this year and next So this year, we are not so I mean, if we talk about manufacturing volume, the expectation is only minor 5% to 10% increase because the demand continues to be a problem.

30:14 Next financial year, the expectation is about 20% growth in FYBC manufacturing volume. Revenue growth will definitely be there this year because of the increased prices. But manufacturing volume wise, we are talking about a 20% growth next year. Got it. And lastly, on the region why the revenue has been like concentrated in the European segment, and we are hearing some pressure in the industrial demand from the continent. So are you also seeing similar sort of slowdown from your customers? Or is it similar as We are seeing a slowdown from our customers in Europe. So are we sort of diversifying into more regions going ahead and in majorly winch areas?

31:01 Yes. We are continuously exhibiting and we are meeting people across other regions and our focus continues to continue to expand the market. So that remains there. Okay. That will do. Thank you. You. Participants, you must have star in one to ask the question. Next question is from the line of from Kanpur and Company. Please go ahead. Yeah. Namaskar to Sandeep. Hope I'm audible. Yes. Yes. Yes. Thank you for a very exhaustive opening remark.

31:49 You have captured all all the possible points. And also for the press release, there this was also there was a good change, very positive change there also, and we hope that for the continuity. Sir, firstly, about the other operating income part, if you could just give me the number that was for the the incentive that we have received out of the 13 crore, which is will be a nonrecurring one. So so... Yeah. So 13.11 crores was the other operating part, out of which IOCL is about 0.34 and DFI is about 12.4, and foreign exchange is about 2.24. Yes. So what is 12 crore? Yeah. 12 crore would be the... Will be the nonrecurring number going there.

32:39 We have been accounted for that. A portion of it would continue to remain recurring because in Q1, this was completely absent. So this may be considered as a Q1, Q2 average. But going forward, we would believe that 3 crores to 4 crores of export incentives will remain there. In three quarter. 3 to 4 crores per quarter will be there? Yes. Yes. Yes. Yes. Yes. Okay. So, sir, easily we can eliminate that 7 to 8 crore from from the operating from the from the operating profit number. That is that the PBT number of 21 crore has a exceptional item of 8 to 9 crore that is not not... Nonlithril.

33:25 That understanding is correct. The way I would see it is q one plus q two is 12.4 crores. So, yes, 6 crores can be eliminated if you are only looking at the quarter result. Correct. Correct. Sir, secondly, when you when you mentioned about the the the admin ID order booking depleting from from... Especially from the European customer. And now we are coming up with our CapEx for for the FID. So if you could just give us outline how are we then going to sell the expanded capacity and for H2, what kind of incremental volume of FIBC would be be there for for selling other than what we manufacture today?

34:16 Yes. So thank you for this important question. I would like to answer this in two ways. One is that, yes, we will be absolutely ready whenever the demand comes back. So we will absolutely be ready when the demand comes back. And the second part of it is we have to differentiate the factors that we can control and the factors that we cannot control. So global demand today is not in our control, but what is in our control is where we are selling to, and that is why we are expanding our geographies. The moment the polymer prices stabilize and customers start rebuilding inventory, we expect the volumes to recover. Because of our long standing customer relationships, we are also positioned very well for that. So in the near term, as I said, the coming quarter, half a quarter, one quarter, two quarter might be affected, but it is also good for the business to build muscle during this period.

35:16 That's correct, sir. And, sir, as you mentioned to the earlier participant also that it is very difficult to to visualize how things will pan out going in because of so many variations. As per your planning or as per the... Your experience, what should be then the reasonable EBITDA margin that we may expect for h two going forward? All these of market, our end customer demand, ballpark numbers See, we are trying to manage our risks to our best abilities. So we would not like to give specific numbers at this stage.

36:02 Initial months after commissioning of the nonwovens also, there will be trials, there will be customer approvals. So the contribution would come up in the following quarters. And to give guidance in this volatile environment, I do not think is quite appropriate or judicious at this moment. Right, sir. But can you give the additional volume for H2 for FIDC that will be posted commissioning? And it was mentioned that both the machines were received. So if you could just explain to us the significance of the thing. Does it perform the CapEx or the commissioning, or what is the significance? Sorry. Could you repeat the second part of it?

37:04 And the other will be commissioned by middle of February. Okay. FIBC ground floor is... FIBC ground floor is already commissioned. First and second Floor will be commissioned by end of this month, that is November. But on how much capacity is being able to be utilized is dependent not on our capacity, but on the basis of the demand that is in the market. So the moment we see revival in the demand, we shall be able to increase our capacities better. Right. So I was just listening to the release wherein you have mentioned for under the FIDC that machinery for both phase one and phase two has been marking an important milestone in the project project execution.

37:51 I'll I'll just have a look at that. I'll answer this question in the meantime. If there is any... Anything else, then we can Correct, sir. I I will also then then join the queue, sir. And once again, sir, thank thank you for the elaborate discussion that is continuing. Next question is from the line of, an individual investor. Please go ahead. Hi. Sorry. Your voice is breaking.

38:37 Can you please come in a better reception area? Ma'am, your voice is still brief. Am I audible now, sir? Yes, ma'am. Yeah. So my first question is, the has commenced commercial production and sales. So what revenue has it generated in Q2? And what is the current capacity utilization? And also, when do you expect it to reach operating breakeven? So in Q2, it has done INR 38 lakhs. In Q1, it did INR 22 lakhs.

39:27 And by in the next financial year, our target is to do between INR 10 crores to INR 12 crores. Capacity utilization is still very low. We continue to get extremely good feedback from the market and approvals are going on. It's a high decision project. It takes time. But directionally, is moving absolutely in the right direction, and we are happy with the direction and the speed both. And from what level of annual revenue and EBITDA levels can it potentially contribute that for utilization? 10 to 12 crore rupees next year is what we plan to do. With the current capital investment, it would...

40:13 It can go up to 25 to 30 crores, but the... I explained in the previous quarter call as well that the CapEx required for this is extremely low. So that will not be bottleneck. It is market acceptance and market demand that will drive this product forward. Okay, sir. My next question is that the company has indicated a fixed FIBC capacity addition of up to 6,000 tons over the next five years. So how much additional capacity is now operational and the current utilization of the expanded capacity? And, also, what incremental revenue can it generate without further major CapEx? I think I answered this in the last couple of questions.

41:00 Okay, sir. And one more question. Could you throw some light on how you're working on increasing the share of higher value added products and EBITDA per ton since I see that other EBIT... I I see that the EBITDA per ton has increased Y o Y over the last three years. Yeah. So percentage share of manufactured products went up from 54% to 66% in FYBCs in this quarter. So FYBC is our target. We will continue to increase FYBC volume, and that is positionally our aim. And also with the nonwoven addition, that is all higher value added.

41:47 So the entire capital allocation and management allocation is on higher value added products. Okay, sir. Thank you for the opportunity. That's it from my side. All the best. Thank you. Thank you.. Our participants, you may press star and one to ask the question. As there are no further questions, I would now like to hand the conference over to the management for closing comments. Thank you, everyone, for joining the call and be patient with us. We invite you to our plant. Anybody can get in touch with Captify to organize a plant visit. Thank you.

42:35 Thank you very much. On behalf of Kanpur Plastipack Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.