TTK Prestige (NSE:TTKPRESTIG) Q2 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to TTK Prestige Q2 FY 'twenty seven Earnings Conference Call hosted by three sixty one Capital Market. As a reminder, all participant lines will be in a listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. I now hand the conference over to Mr. Ashish Shah from three sixty one Capital Market. Thank you, and over to you, sir. Thank you, Anam. Hello, everyone. On behalf of three sixty one Capital Market Post date, we will open the floor for question and answer session. Thank you, and over to you, sir.

1:14 Thank you. Good evening, everyone. Thanks for joining today's earnings call. Before I hand over the proceedings to our Managing Director, Mr. Venkatesh, I just want to remind the participants that the discussion today may contain certain statements, which are futuristic in nature. Such statements represent the intentions of the management and the efforts being put in by them to release certain goals. The success in releasing these goals depends on various factors, both internal and external. Therefore, the investors are requested to make their own independent judgments by considering all relevant factors before taking any investment decisions. Thank you. Over to you, Venkatesh. Good evening. So let me start with a little bit of an overview on our overall economy and then the industry per se and then our specific performance for the quarter.

2:03 We remain very confident and comfortable with the way we look at the Indian economy today, both from a macro perspective where with so much of uncertainty around the global scenario, we do believe that the Indian economy is far more stable and offers lot more stable business opportunities as we move forward. The macroeconomics as we see the macro factor seems to be sort of stabilizing, and that seems to be a silver lining for us globally in comparison, also in terms of specifics to the industry as well. The GDP projections remain quite robust and that's our sense of comfort. What we do see, of course, is a lot more positive view around investment, particular to our industry as well. And I think that's a welcome sign that we see in times of such global uncertainty.

2:51 And I think that all goes well as we move forward. In terms of our specific categories, the last two quarters in particular and this quarter in particular has seen a sort of significant drive in the industry. A lot of macro factors that are helping us, including the demand drive, including consumer demand, which has been substantially increased in the last few quarters and a sustained way of looking at the business. So the industry and the categories at large where we are present seem to be presenting a positive view for us after a period of a little bit of a dull, lull period. And I think the last few quarters, we've seen that revival happen at the industry level as well. Driven by consumer demand, driven by very specific trends like we mentioned in the past in terms of urban premiumization, in terms of willingness of consumers to try out new products and new category, in terms of scaled up manufacturing capability and also in terms of being able to bring to the table a lot more innovation. In general, I think there's a lot of vibrancy around the category, and we do hope that augurs well as we move forward as well.

3:59 Specific to our performance, I think it's been a great quarter for us, one of the quarters that we've seen good movement in terms of our top line as well as in terms of our profitability. More than the business numbers, think what we are quite comfortable and quite confident about is that a lot of initiatives that have been kicked in at a company level through the last few quarters, reinforcing our focus on quality of product, reinforcing our focus on distribution transformation, a lot of focus on bringing in new products and innovation. They've started to kick in at a larger scale, and I think that's helping us in terms of a good top line growth, a very robust top line growth, followed and backed up by a reasonably robust profitability as well. Having said that, there are a little bit of challenges that we face today. As we speak, the pressures on cost, the inflationary cost pressures have been significantly high and continue to be of concern for us in the coming quarters as well. While at an industry level and we at a particular level have been sort of mitigating them with price increases, I think the cost increases are at a stage where it probably would affect demand. And therefore, I think we would want to look at it more from a perspective of a stable environment over a period of time.

5:14 So robust top line growth backed by macro factor driven demand, internal transformation agenda of the company is working well. And of course, a lot of cost initiatives helping us build the profit table stable. The concern continues to be on the rising cost inflationary pressures and how do we handle that as we move forward. So that's probably what I would say. But I think it's been the last two quarters in particular, and this quarter has been sort of a substantial growth for us. We're quite happy about that. And we do believe that over a period of time, we would be able to sort of leverage this as we move forward. From a numbers perspective, we did close to around 21.9% on total sales with around 23.4% from the domestic market.

6:03 Exports have been a concern. They continue to be a concern because of uncertainty around the war scenario and a little bit of global scenario. The domestic market has shown significant resilience in terms of demand and we grew at around 23.4%. Our operating EBITDA is at around 70.9% growth. We continue to stay invested in terms of brand initiatives, in terms of go to market initiatives. A lot of initiatives that we are taking around process transformation is sort of reaching a stage where we get starting to see the benefits of that, and we continue to see we continue to hope to see those benefits as we move forward. We've also made some changes, which I would let Mr. Saranian speak about a little later on some of our investments and changes that have happened.

6:51 So at an overall business level, a very good quarter, sustained. And we do believe that as the business moves forward, we would be in a much better position given the internal transformation that we've done. We do believe that we've been constantly beating the market. And in many of the categories, we've been sort of increasing our market share, which has been one of the key KPIs that we focus on. We have been delivering higher market shares with profitable growth, and that will be the way forward as we speak, driven by premiumization, innovation and a lot more focus on new product development and deliverable to the market as well. So that's an overall scenario and we remain confident and we remain excited about the growth opportunities that would come forward.

7:36 In the short term, we would, of course, like I said, have pressures on cost, which we do believe will need to be managed slightly differently from the past and we would probably come back on that a little later. So that's my summary from a quarter perspective and I'll probably leave it to Sarini to just brief you on the other agenda and then get on to the questions. I just want to give two updates for this quarter. I think it's already announced in the stock exchange as well earlier. One, we have divested our investments in our subsidiary, 51% subsidiary UltraFresh Modular Solution, primarily because based on the exercise what we are going through the last one year, we decided that we have a lot more to do in our core category and the core market. So we didn't want to divert our attention to any other categories, so we decided to divest that investment.

8:26 So that loss, whatever we have incurred as part of this transaction has already been recording this quarter's results as an exceptional item. And as you know, we also invested in one of the startup company engaged in the rural distribution couple of years back through the cumulative the compulsory convertible debentures. That also unfortunately due to the micro financial institution, the industry going through the tough weather. This company was in a similar customer base. They were not able to grow as they are initially envisaged. So they have to shut it down. So we have taken a hit on the CCD as well and then that INR2 crores loss is also considered in this quarter's financials as an exceptional item. This is the two exceptional items that has come in this quarter.

9:22 Over to for any questions. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch tone 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 queue assembles. Anyone who wishes to ask a question may press star and one on the touch tone telephone. If you wish to remove yourself from the question queue, you may press star and two.

10:27 The first question comes from the line of Lashmi Narayan from Tonga Investments. I just want to understand the cost escalation which you talked about. Is it in aluminum? Or is it in steel? Or is it in plastic? Can you just elaborate? And how the industry is taking price increases? I understand that in some of the small appliances price increases companies are taking. So with respect to us, how how is the price increase are taking place in the industry in general is taking price increases or somebody is waiting for some I mean others to take a price increase? That's my first question. And second, just in terms of the soft expenses, you said it could continue to incur.

11:16 Can you just give an outlook of how much of the soft expenses would actually happen in this year and how much has already had took place in the first half? Yes. So on the cost impact, I think the cost impact has been across commodities. It also includes packaging material. It also includes all input materials that have gone into handles and other rubber related chemical related costs as well. So commodity pricing in general has gone up significantly. I would say 95% of the input line items have got impacted in terms of cost. So that's one. In terms of the cost increases being sort of mitigated through price increase, I think it has been a very staggered one. We have taken a step jump. We've been followed by other players, but they've been in a staggered manner. So in our view, the industry has not fully absorbed the cost yet.

12:16 And I think it will sort of continue to flow through into the next few quarters as well. So that's from a cost perspective. We would believe that there is some more cost increase mitigation that needs to be done in the coming quarters as well. In terms of our own internal investments, the first part of the investment we have done around building capability, building capacity. The current investments would go into brand and the current investments will go into strengthening our brand position across some of our core categories. So the spends would continue to be there, but it will be sort of get realigned with our brand objectives at this point of time. Just to give you the number, I think last year we have incurred close to around INR100 crores, close at around INR85 crores and then the previous around INR20 crores.

13:11 The first quarter in the first half, we have incurred around INR13 crores. It's all disclosed in the financial statements as well. Okay. And for the year, how much you are budgeting? See, we have an overlay of around INR 200 crores to INR $2.50 crores is what we have overlay for a period of three years. That's what we will be spending. This is we are in the second year now, one more year to go. Got it. Got it. The third question is that how are you seeing buoyancy in the channel because we had the festival being pushed to the third quarter. Since second quarter has also been good, is it I mean, is the festive sales that already come in the second quarter or you think how it will actually come in the third quarter?

13:57 There will be a little bit of flow through into the third quarter, given the festive season currently. That continues to be that will continue to be there for the in the third quarter. A little bit of flow through would happen. But we have indicated that also in the investor presentation, October has been good. Okay. Okay. Okay. And how the saliency in e commerce has been for us? Is it because we had these sales last month or maybe I don't know whether it happened in the second quarter or third quarter? In general, what has been the saliency in e commerce? We one of the things that we continue to maintain, we are an omnichannel growth driven company. At large, our e commerce store quick commerce together would contribute around 20 of our sales. The band of contribution remains in the same level. We're growing equally aggressive across all channels today. So it's not very completely skewed towards e commerce.

14:53 We have uniform growth across all channels today. Great. And in terms of new product introduction or either the new either additional SKUs or completely new areas, how does progress have been in the first half? And is it in line with the company's target? It has been in line with the company's plan. New product development and SKU range is something that we've completely built. A large part of that also was done in the last quarter as well. So from a half year perspective, if you look at, we significantly ramped up the number of SKUs that have gone into the market. Whatever gap that we had earlier in terms of our portfolio, that's all complete and we now sort of lead the industry in terms of new product development and SKU introduction into the market at this point of time. So new SKUs and NPDs are a substantial part of our growth lever to date.

15:52 Got it. And in terms of strike like growth, there have been a strong growth for the sector in general. If you index to 100, what have been the strike like growth for us over the first half? If you can just and whether the cost escalation there is also very high or is it demand is slightly inelastic there? No, you're right. We would be ahead of the market in terms of Try Play growth. We are gaining share in Try Play. The cost impact is there in Try Play as well because Try Play is a combination of stainless steel and aluminum. That cost escalation that we're getting on stainless steel and aluminum is impacting the Try Play category. But from a growth perspective, TRI FLAY remains the most aggressive growth segment both in cookers and cookware.

16:40 And what kind of growth you see in that sector? Is it like how much more than the overall growth you have got? Like overall growth is 22%, 20% to 22%, but how much is the TRI Play is actually growing there? It will be around one and half times. TRI Play is from an average industry growth, TRI Play will be around one and half times. The next question comes from the line of Akash from Yes Securities Private Limited. Sir, we have seen that our other expenses have come down, say, Y o Y and sequential basis. So what has lead to that?

17:31 See, as we had mentioned as part of one of the notes in the financial as well, last year, we had incurred some strategic expenses of INR 36 crores sorry, in the second quarter around INR 18 crores, which is not there in this quarter. So that's one of the reasons why it has come down. In addition to some initiatives what we have been working on in the last one year to bring down optimize some of our costs, that benefit is also flowing through now. Going forward, please. Sorry. Go ahead. Sorry. Go ahead. Can you repeat the last part? No, sir. Going forward, sir. So the strategic investment will be going more or it's done for the No.

18:18 This will go on for some more time. As I was mentioning in the previous participant as well, this is some we have planned INR250 crores of soft expenses in three year period. We are just in the second year, one more year to go. So that will be some more spends that's coming in, in the coming quarters. This is all for the long term benefit of the organization. The next question comes from the line of Archie Cha from three sixty one Capital Market. Please go ahead. Thank you for the opportunity. And good set of numbers and congratulations.

19:04 So first question is on July. I would say, I mean, So how much would that be attributable to volume and value from that? And how much of the pricing is still left to pass on there? The volume growth is expected something around out of the INR22 crores 22% is around 8%, 9% will be the volume growth, the rest will be the value. And the product mix, if you look at, I think what we have seen is the premium products are doing better as Mr. Venkatesh was mentioning before, the dry clay has been growing better than the other cooker or the cooker. Similarly, I think we have seen the premiumization is happening.

19:52 So overall, you look at, I think the information is also given in the investor presentation. The cookware is around 30%, 32%, the cookware around 15% to 18%, the appliances are another 50% close to 50%. Okay. And how much of this I mean, it's 8% of volume and adjusted value. So are there any further pricing there to be further or we may have taken most of It is across similar. Would yes, like I mentioned, there would be a little more of the prior cost that needs to be passed on to consumers. But that's a call that we would take as we move forward. Okay. Okay. Sure, sir. And secondly, on the other expenses that I think you OpEx last year, which is not there right now. So is this related to the 200,000,000 the picros that we have planned? Like or was there any other OpEx that you will moderate in this quarter?

20:51 See, our strategy expenses, like I mentioned, are in three phases. The first phase was around internal capability building, taking external help to make sure the organization is ready for the scale up. I think that part of it, are reasonably comfortable. The second phase of the investment would blow inflow into product development and into new product development and into brand. So from a direction perspective, we continue to be invested upon and we will be spending on strategic investments as we move forward. The nature of the spend will probably move into brand significantly and into investing behind innovation. So these are two areas that we would probably call out for the next few quarters and substantial investments that go behind them. Okay. And how much are these have already incarnated any number you can draw out of INR200 INR200 crores?

21:45 We have spent close to around 100 crores in the last six quarters, six, eight quarters. Okay. So INR 50 crores still yet to be spent. So So at this point in time, we don't want to sort of give any further guidance on that given the volatility of the cost pricing at this point of time. On a steady state, we do believe that the business potential is around 13% to 14% EBITDA, we maintain that stand. But currently, given the volatility what's happening around in terms of the costing, we would want to be a little more cautious on any guidance at this point of time.

22:57 Howard? Okay. Howard, I think they have on the top line, I think they have done well, but because of the geopolitical issues and the economy in UK and Europe, I think the cost has substantially gone up. That's the reason I think their bottom line has been almost close to the breakeven level. We expect the top line to grow steady, but we have to wait and see how things happening in The UK market. Okay. Okay. Okay, sir. Sorry to interrupt you, sir. Voice not Hello?

23:45 Hello? Not yet. Not yet. It's still breaking. Okay. Okay. I'll just bring in the ninth. I will just Yeah. The next follow-up question is from the line of Lakshmi Narayan from Tunga Investments. Sir, I just was looking at the cash flows. I understand that there has been an increase in the inventory. And when compared to last year and in spite and we have grown pretty well across.

24:30 However, the inventories have also increased. Therefore, it is straining the cash flows. Can you just explain that whether it is more because of the festive season that there has been an increase in the inventories or is it any other reason? This is purely on the basis of our anticipation of demand and a lot of internal work that we're doing around our improving our manufacturing systems. So the inventory that we built up is an anticipation of one demand, and we do believe that, that will sort of over the period of time get negated. Also in the last two quarters, we've been significantly able to cater to the substantial growth that has happened only because of the inventory buildup that we've done in the past. So I think the current inventory buildup needs to be seen from a perspective of sales opportunity.

25:24 And as and when we see that, that probably needs to get corrected, we will sort of slow it down. So that comfort is there with us today. Actually, number of days inventory is not increased. Number of days inventory is not increased. Absolute value is increased given the current context of the growth that has happened. Got it. Okay. Thank you. The next question is from the line of Sid Gandhi from IIFL Capital. Hi. Good afternoon, everyone. This is Sameer from IFL. I joined a little late, so please pardon me if the questions have already been asked and answered. But just a more theoretical question. So we've seen good numbers in terms of growth being reported by most of the consumer durable player this quarter.

26:17 And part of it is also driven by pricing, but even the volume growth trends have been healthy. Now in a situation where there is a macro pressure of inflation, how suddenly is the the the category seeing tailwinds? Is there a theory that inflation actually helps the organized players more versus unorganized who get disrupted? And there is a theory that organized players tend to gain market share? Is this playing out predominantly? Your thoughts will be greatly helpful. Yes. I think there are two levers that are probably helping the demand at this point of time. One, like you had mentioned, there is a significant movement from unorganized players to organized players, partially because of the cost pressures that the smaller players probably are not able to sort of withstand.

27:11 The second, I think at an overall level, the trend of growth and that we've seen over the last few quarters very clearly is that there is a move towards branded players, not because of just the cost, but also in terms of the modernization of kitchens that's happening today. A large macro factor that probably is helping is the modernization of kitchens today, and that is helping the category. So short term cost pressures are definitely sort of putting more pressure on the unorganized segment. And given the gap that comes between branded players and unbranded players, the branded growth would definitely be high. I think that's one trend that we do believe is playing out in the market at this point of time. The second opportunity that consistently continues to be played is the premiumization of kitchens and therefore associated categories.

28:01 And some of our categories seem to be falling in that space at this point of time. And they seem to have a relevant share of our wallet as well. And that's helping us during this special season as well. So these are two macro factors that I would say, which is helping the growth. And they probably would also be the reason why the growth can be reasonably sustained. While it may not be as dramatic at what it is at this point of time, I think it is reasonable to believe that there will be a sustainable level of growth for the industry. Got it, Kieran. One more question, if I may squeeze in. Basically, just wanted to understand the RM cost pressure right now. So you would have already covered in the past quarter, but commodities have still inflated. So, what is the kind of inflation we are looking at right now?

28:49 And do we still plan to take more pricing interventions in the near future? Just on that. And if 2Q typically is all high priced inventory coming into the P and L or we were still having some benefit of older lower priced inventory? See, the pressure has continued to be there. Even today, the prices are much higher than what it used to be in the Q4 of last year or the Q1 of this year. We still have that pressure. We'll continue to be there the way in which looks like it continue to be there. As I was mentioning in the beginning, we were not able to be very difficult for us to recover this through the price increase in the market. We have to wait and see. We have started seeing we don't have we have already taken all the benefits of the old inventories. I think from now on, I think the pressure the stress will start coming into the gross margin.

29:46 This is helpful, sir. Thanks a lot and wish you all a very happy Diwali. Thank you. Wish you all the same. Thank you. The next question comes from the line of Mustafa Khedwala from Q Investments. Please go ahead. Good evening, sir. Thank you for the opportunity. Sir, you mentioned that we have some very strong traction in the Triply segment. So sir, the Triply Circles, do we make them in house or we source them domestically or we import them, sir? Pipelines circles is imported. From China? There is no production of Pipelines circles at this point of time.

30:34 And do we do it from China, China is one of the sources. China is one of the dominant sources. All right. And sir, you mentioned, sir, that there is a lot of traction also in the premium range that we are experiencing. So some few quarters ago, we also had plans to launch a new premium brand. So what is the update on that, sir? Have we done anything or that is in the back burner? No, not at this point of time. I don't think we mentioned about a premium brand per se. We have two brands with us, which is Judge and Prestige. Prestige. We continue to stay focused on both of them. And both brands continue to have a robust growth at this point of time. The premium space opportunity is an opportunity that we will evaluate as in the right time.

31:25 Okay. And the Judge brand is growing disproportionately, sir. So what percentage of that growth, sir, is coming from cannibalization of our lower end mass premium products? So Judge and Prestige, by way of portfolio and by way of the market that we have done, the cannibalization is minimal. We've consciously kept the two separate and places where we believe that there might be cannibalization, we've not played Judge. So Judge growth is purely on the basis of Judge addressing a different target segment that Prestige as a brand does not address at this point of time. And it is on the lower end of the mass market, while Prestige continues to keep get upgraded towards the upper end of the market. So I think the two brands don't cannibalize each other at this point of time. And the margin would be similar even in the Judge brand as much as you get in Prestige?

32:16 No. Structurally, Judge would be slightly lower than Prestige. That's the nature of the portfolio and also the type of target segments that we address. I think from a structural perspective, we are clear that Judge and Prestige at this point of time, Judge would have a slightly lower margin profile. Sir, would you be able to quantify like 10%, 20%, 30% lower margin there vis a vis that... Not in this call probably. Probably wouldn't want to do it at this point of time. Fair enough. Thank you, sir. All the best. Thank you. Thank you. In order to ask a question. Participants may press star and one in order to ask a question.

33:15 The next question comes from the line of Rakshmi Harayan from Tumba Investments. Yes. Thanks again. So you mentioned that there are some SKUs you actually introduced, and there are some pictures of some SKUs in the presentation. So is it the same one or which are the ones you have introduced? Some of them sorry, the one what we had shown in the industry presentation is what got launched during this quarter. We have launched some in the say, normally, when there's a new launch or new SKUs from which we are getting the sales, it's almost we would say the last one year what we had launched. That's where we track as a new SKU the growth. And we continue to introduce SKUs as we move forward as well. That's a regular routine process.

34:03 Okay, okay. And in terms of product design, how have you what have you done in the last after this transformation exercise, how you have improved the design initiation process or the team or how you have done? Can you just elaborate if possible? Please, made the new launches. They are going into the next phase of launches. When they come out in the market, you'll see them. Okay. Okay. Okay. And our what is the mix of outsourcing we do on on the appliances? And also, what has been the resiliency of induction cooktops in the first half? So outsourcing, our appliance business is outsourced but with very exclusive partners.

34:52 In house manufacturing, almost 90% of our kitchenware business is in house. So as a business constraint, our appliance business is also, and that continues to be what it has been in the past as well. That's from the outsourcing versus insourcing perspective. Induction continues to be The robust growth of induction has been as aggressive as it's been in the last few quarters. Sir, is it grown much ahead of the entire company growth to any number? Because I somehow I didn't see it in the presentation. We don't share that number, the specific one. But yes, it has grown higher than the company group. Okay.

35:39 And do you see that Binance is still there? Or is it just behind? So from an induction category perspective, the way I look at it is I think the induction category has got a fillet that probably would sustain this growth. So I think the category has got a substantial intervention by way of some of the consumer initiatives that we have done and also the macroeconomic change that's happened right now. The category, which was probably in low teen growth would probably continue to be in high teen growth in our view in a stabilized state. It may not be at a 100% growth or 150% growth as would have been reported in the past, but it definitely is going to be a high teen sort of numbers that I would look at from a growth perspective in the coming quarters as well.

36:26 Will induction will continue to be a growth category for us. Got it. And couple of quarters back, we talked about heightened competitive intensity. I mean, course, it will always be there. But just want to understand how the scenario is now? Has it been benign? Or is it even in the last six months, it has become even worse? Can throw a light on competition? Is it in where do you see, if at all, is it more entrenched in certain regions or certain tier cities or certain SKUs? How are you seeing it? So the competition, I think, primarily is coming in from the advantages that e commerce probably is giving to new players. So a company to construct, I would say, is largely intensive in Cookware, and it is being driven by e commerce based or digital based brands.

37:23 So we do not see the impact of that from our growth construct perspective at this point of time, given the omnichannel presence that we have and the distribution expansion that we have in our physical distribution as well. Some of these players are of course, the I would see it in both ways. If good money is coming into the category, it only proves that the category is attractive enough to be driven. And I think we believe the category is attractive enough from a growth perspective. The new players are bringing in new ideas, which I think is good for the industry. But from an overall perspective, I would say that the impact of the new players yet to be seen. That I would say is largely being driven by the e com digital platforms. I would say it that way.

38:09 And if you just look at various channels, which channels have actually grown ahead of company growth and which channels have actually grown below the company growth? Yes. At large, I would say it's been a growth evenly distributed across all channels. I don't want to get into very specific channel data at this point of time in this call. But from a directional perspective, we have grown substantial across all the channels. There's no one channel that sort of got left out. And that, I think, is one thing that I would probably believe that is due to our internal efforts that we've done in the last few years and being able to substantially grow across all the channels. Got it. Thank you. Thank you. The next question comes from the line of Mustafa Khirwala from Cube Investments. Please go ahead.

38:58 Thank you for the follow-up, sir. Sir, enamel range cookware has really exploded as a category. So sir, do you have any plans of entering this segment? We have and we've launched a few SKUs. We are in the process of expanding that product category as well. So we would lead in Cookware, we would lead most of the category innovations as we see it today. And wherever we do see relevant ideas that need to be sort of expanded and distributed well, we do that. Enamel is something that we picked up and we would we've already launched a few range and we continue to launch that for product category as well. Sir, how big a market size do you believe, sir, this enamel could be in India? See, these are very early times.

39:44 Our belief is that customer finally makes the choice. I think whatever options are there, we present to the customer. And a few options like TriPlay have seen really substantial growth. Some of the other categories like ceramic, enamel, they are at an early stage of adoption. We will continue to stay invested in them and as we see pickup, our expansions will also happen. So I would tend to believe that in cookware in particular, it is time to experiment with a lot more of material based innovations and design based innovations, leave it to the consumer to choose and have scale. And in a country like India, I think the scale is large enough to make a dent in terms of category size. So we would believe that all categories in cookware need to be looked at and probably experimented with. Enamel is one of them, ceramic is definitely one of them.

40:35 And sir, what would be the contribution of sales that is coming in from products launched five years ago? Is this a metric we track or we have data on? We do have data and we do track that. Like we said, a larger focus is on the new products and therefore the growth. Having said that, in an industry like this, there are anchor products that need to be sold as well. So from our perspective, it's an equal mix of both anchor products and new products. Specific numbers, wouldn't want to call out at this point of time. Sir, ballpark rate, is it more than teens or I mean, that much No, you can I think this call would not be the appropriate place to sort of divert such data? Fair enough, sir. Thank you.

41:23 Thank you. Ladies and gentlemen, we will take this as the last question for today. I now hand over to management for closing comments. Over to you, sir. So thank you all for a very engaged conversation and a good interaction that we've had. We continue to place our confidence in terms of the overall category attractiveness and also our company performance as well, and we hope to sustain this as we move forward.

42:22 Very happy festive season ahead and happy Diwali to everybody. Thank you. On behalf of TTK Prestige Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.