Mold-Tek Packaging Limited (NSE: MOLDTKPAC) Q3 2025 Earnings Call dated Feb. 07, 2025
Corporate Participants:
Janumahanti Lakshmana Rao — Chairman & Managing Director
Unidentified Speaker
Analysts:
Nitin Gupta — Analyst
Gaurav — Analyst
Sani Vishe — Analyst
Mayank Agarwal — Analyst
Richa Agarwal — Analyst
Ashutosh Khetan — Analyst
Roshni Galani — Analyst
Jaiveer Shekhawat — Analyst
Manan Madlani — Analyst
Mehul Panjwani — Analyst
Akhil Parekh — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Q3 FY ’25 Earnings Conference Call of Mold-Tek Packaging Limited hosted by Emkay Global Financial Services. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr Nitin Gupta from Emkay Global Financial Services. Thank you, and over to you, Mr Gupta.
Nitin Gupta — Analyst
Thank you. Thanks, Michelle. Good evening, everyone. I would like to welcome management and thank them for this opportunity. We have with us today Jay Laxman Rao, Chairman and Managing Director. I shall now hand over the call to him for his opening remarks. Over to you, sir.
Janumahanti Lakshmana Rao — Chairman & Managing Director
Thank you. Good evening, everybody. Thank you very much for your interest in our quarterly and nine months results. I’m glad to inform you that there is a considerable improvement in the performance this quarter compared to the previous two quarters. The sales are up by 15% and volume terms, it’s up by 7.5% in rupee terms, it’s up by 15.25%. EBITDA also gone up by almost 12%, but due to higher depreciation and interest, the PAT has dipened by 3.9% compared to Q3 last year. So the one significant improvement what we are going to see in future is our entry into pharma is well consolidating. We are in position not only to add several new products and several new clients, but commercial supplies to some of them started as late in December and it’s picking-up pace in this quarter, that is Q4. For example, our sales were hardly INR1.5 crores in pharma compared to INR2.27 crores in pharma against INR1 crore in Q2. But in the month of January itself, we have crossed INR2.1 crores due to the commercialization of the samples that were approved during the last several months. So within a year, less than a year, company could come to a considerable capacity utilization of pharma facilities. Currently at INR2 crores, it is almost occupying 40%, 45%, 40% of the capacity. And steps have been taken to enhance the pharma capacities also. During the question-answers, we can have more detailed discussion. So I vote to the moderator to start the question-and-answer session.
Questions and Answers:
Operator
Thank you very much, sir. We will now begin with the question-and-answer session. Anyone who wishes to ask questions may press star and one on their touchstone phone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use only answers while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles you. The first question is from the line of Gaurav from Capital Farming Consultants. Please go-ahead.
Gaurav
Yeah. Thanks for giving an opportunity. I hope I am audible.
Operator
Sir, I request you to use your. It’s a little bit muffled.
Gaurav
Okay. I hope now it is better.
Operator
Yes.
Gaurav
So my first question is some of the clarifications vis-a-vis the last quarter when we were conducting this conference call. We mentioned — you mentioned a couple of challenges from supply-side within that was like, for example, printing machines were not available, which impacted our, I think, pain tax supply, then certain molds were not also available, which impacted our pharma — our confirmed orders, right? And the same way in food and FMCG segment, we were expecting that the supplies will start from majorly January onwards, right? So in all the three segments, either availability of machine or molds or supplies from plant in January, if all of them have started or some of them are still facing challenges?
Janumahanti Lakshmana Rao
Yeah, that’s good that you’re following it up very closely. Yes, one of the challenges we have been facing for last several months is printing capacity of IML and procuring the IML in time, which is impacting our supplies in food and FMCC sector and also to some extent in the paint and loops. So these printing machines have just arrived, a couple of them, one from Italy and one from Delhi. Both the machines are in-transit. Actually the Italian mission landed in India and in this week, it will be reaching plant. So as we anticipated end of January, but they are reaching by say 10th of Feb and probably the erection will take another couple of weeks. So by certainly by end of February, we are ready to have almost 35% to 40% increase in the capacity of IML print labels, which will also die-cutting, so which will enable us to face the upcoming season, which generally starts middle of February and goes up till July, June ending. So these next four, five months is crucial and thankfully, we are ready with the enhanced capacities. Coming to the pharma, the molds which have been developed for pharma are all approved. And I’m glad to inform you that we are not even one year-old in pharma because the plant was inaugurated only in February last year. And within one year, I’m glad to say that we have developed 12 new bottle SKUs and two more child featured products for pharma industry in India. And I’m also glad to inform you that one recent — recently in the month of December, we have taken-up a challenging project for one of our Hyderabad-based company exporting to US, a product which is been applied for patent and that product supplies also started as a trial batches of about 2 lakh pieces worth around INR25 lak INR30 lakh rupees per month, but with a potential that can more than triple in the next financial year. So that product we are applying for the patent because there’s a lot of IP and design concepts have been incorporated in it and well appreciate we declined for quick development within five weeks. So that product showcases our ability to develop new packaging solutions in the pharma industry, which has been highlighted in our course of audits by various other companies also. So these molds are now ready and supplies also have started and we are gearing up additional capacities in pharma within the premises what can it accommodate in the next three to four months. And for the new premises construction also has been initiated, which will be probably starting from next calendar year.
Gaurav
That’s great. That’s great. So coming to the presentation that we have uploaded for nine months this quarter result also. So overall volume, we have mentioned that there is an increase of almost 7.29% from 26,590 metric ton to 28,530 metric ton. So if you can give up in this nine months volume, what exactly is the volume of paint packs vis-a-vis last year nine months?
Janumahanti Lakshmana Rao
Yeah. The painting packs volume has grown-up by almost 14% this year, thanks to Adity Chabirla Group starting commercial production at and and recently at Mahad. So paint is up by 14% in nine months-to nine months numbers in terms of value. But in terms of quantum, that is in tonnage, 8.4% is a growth in paint, 7.3% in food and FMCZ, 18% in Q pack that is our square pack. Pharma of course is contributing minus small numbers and then rest is loops is down by around 1.5%. So overall growth is around 7.4%, 7.31% in tonnage
Gaurav
And that’s it. Would you be able to give the absolute number of the paint segment in metric tons. This year nine months vis-a-vis last
Janumahanti Lakshmana Rao
Nine months, it is 13,733 tons, which is 48% of our overall volume.
Gaurav
Last year it was
Janumahanti Lakshmana Rao
Nine months ago. Loops is 24%, food and FMC is at 12.7%. QPAC is 14.6 and pharma is 0.35.
Gaurav
Sir, I’m asking last year nine months volume of pain.
Janumahanti Lakshmana Rao
Last year nine months volumes, we heard them last year.
Unidentified Speaker
Last year.
Janumahanti Lakshmana Rao
Okay. Last year it was 12,670, paints, 7,60 in loops, 3,368 in food and FMCZ, 3,546 in Q-pac and Pharma zero.
Gaurav
So sir, considering the nine months volume of paint segment last year vis-a-vis this year and considering that we have grown substantially, considering the supplies that we have made to the Aditya Villa, right? So if we exclude the Aditya number, I’m assuming that it will be somewhere around 1,500 metric ton or 2,000 metric ton in nine months volume. So there seems to be degrowth in the paint packs in on a nine-month basis, right, if my understanding is correct.
Janumahanti Lakshmana Rao
If you remove ABG, it is a negative in other paint segment.
Gaurav
The EBITDA is because of the Asian paints or some other players have also contributed to the de-growth?
Janumahanti Lakshmana Rao
Major reduction is from Asian paints because they are one of our largest customers even today. So there we lost almost 10% volume. And other like pay — others like narrow and edges is not much of a downfall. It may be 4% to 5% but the major reduction is from Asian.
Gaurav
Would you be able to elaborate what are the reasons why such kind of a degrowth, almost 10% in our volume share with the Asian paints is there?
Janumahanti Lakshmana Rao
One of the reasons is, I think they also have tepid growth, one, I don’t have the exact numbers, but there is a tipid growth in their volumes. And there is also the redistribution of volumes between the — between the vendors based on pricing. We are a little sticky on our pricing, probably that is one of the reasons why we are losing some part of the business.
Gaurav
Okay. Sir, last question from my side, if you may allow. In one of the last con-calls also you mentioned the same challenge that redistribution of the volume by Asian Paint to some of the other suppliers also. And one of the suppliers their related-party also, right? You mentioned in the con-call. So since we are backing up on the Birla group, specifically this Girla offers in a big way. We have spent a lot of money in the capex, right? So do you foresee the same kind of a challenge going-forward that in their scenario also there might be some related-party to whom this volume distribution can happen and our entire capex that we have done over a period of a time might not give up that kind of a ROIC.
Janumahanti Lakshmana Rao
You see, we are neither related to shipments in our ABG. We are just a professional company and doing our best services and our quality is not giving us the opportunity to serve these kind of jaint companies. Having said that, ABG has all the supplies other than high-tech, rest of the all pail manufacturers you name in-country are associated with ABG one-way or another. So that is not the reason like our association with ABG won’t make Asian paints to reduce our volumes. Definitely, I don’t think so. It is maybe redistribution or pricing that could be the reason is what I guess because yeah, or high-tech — other than, you name all the players in the pail segment, they’re all working for ABG. So that’s a common feature.
Gaurav
No, sir, my question was slightly different. Let me rephrase it, like because that there is an there is a related-party which also supplies to Asian paints and based on — because it is also a listed entity as far as I recollect and the numbers that they have reported, they have taken a substantial chunk of volume as well as value-wise from Asian wins, right? And since we have invested for Aditya Birla Group also, a lot of money in terms of capex, so do we foresee that a certain related-party of ABG Group in maybe near-term can also get into — if not already in this vertical, maybe get into this vertical and then our supplies might be curtailed somewhere down the line two, three years
Janumahanti Lakshmana Rao
Oh, you mean think that might start their own.
Gaurav
Some of their related-party group company, do you foresee that challenge?
Janumahanti Lakshmana Rao
No, I don’t foresee that because there was no such talk or even a of maintaining such plans in Asia.
Gaurav
As per your industry knowledge, sir, as per your industry knowledge, if Aditya Birla Group is having any such company, which is also in this pale manufacturing segment or not at all? Is it because you know the industry very well as compared to us.
Janumahanti Lakshmana Rao
As of today and because we certainly have information about that. As of today, there is no entry of the Group directly or indirectly in any of the plastic molding lines.
Gaurav
That’s great. That’s all from my side. I will come back-in queue. Thanks a lot.
Janumahanti Lakshmana Rao
Yeah.
Operator
Thank you. The next question is from the line of Sunni Vishay from Axis Securities. Please go-ahead.
Sani Vishe
Yeah. Thanks for taking my question, sir. So I’m trying to understand the EBITDA per kg trajectory. So if I remember correctly, we are expecting to cross the EBITDA per kg of INR38 by the year end. But as of now, it seems to be somewhere around 36.7. So what are your expectations for the full-year and when do we see us crossing the earlier target of 40 kg per kg.
Janumahanti Lakshmana Rao
Yeah, probably in the Q4, we may see the number crossing as the pharma contributions are substantially improving compared to the previous quarters. But for it to cross a level like INR40, maybe only in the next financial year, we can aim at it because pharma will be in big numbers compared to what it is in this current financial year. From INR2 crores INR2.5 crores what we did in the first two quarters put together, pharma probably would do another 5.5 crores to INR6 crores in the Q4 that takes the overall total to about INR8 crores for the year. So from INR8, we are aiming at almost INR30 crore INR35 crores turnover coming from pharma in the next financial year. So that substantial improvement of high-margin business should enable us to move above the — or at least close to the 40 mark next financial year.
Sani Vishe
Okay. And one small question. So this quarter, we increased the volumes by 7.5%, but the revenue was higher by 15%. So there is clear improvement in the realization per kg. So is this the current level is more or less that we’ll be able to hold or do you think it is improving further in the coming quarters?
Janumahanti Lakshmana Rao
Yeah. There is an improvement due to two reasons. One is raw-material price also has gone up marginally. It’s not really gone up. It is — if you take nine months, it’s gone up by around INR4 rupees. So the selling price could go up by around INR8 rupees. So that is why we are able to sustain the EBITDA improvement, which is almost 11.9% for the quarter and 6% for the overall nine months in-spite of increase in staff costs and labor costs due to the new plants that have been installed and commissioned in this year. All the capitalization benefit was not benefit, I would say, capitalization of expenditure is now getting impacted in the P&L. So that way the underutilization of these new capacities is causing a challenge in increasing the EBITDA. But going-forward with the ABG numbers improving and pharma numbers also improving from probably next quarter onwards, we would be able to see the EBITDA per kg improving.
Sani Vishe
So sir, on — I’m asking on realization per kg. So I think it will be a product of raw-material prices and demand.
Janumahanti Lakshmana Rao
It is a product of raw-material and also a combination of the product mix. As we grow in pharma per kg realization could be more than INR300 to INR350, whereas our current average is 2006. So even if pharma becomes a 5% of our sale price — sale volume, it would be taking up our sale average price from INR2.5 to 2006 today to 215 level. So that can substantially improve the pricing hence margins also.
Sani Vishe
Understood, sir. Very clear. Thanks a lot.
Janumahanti Lakshmana Rao
As of today, it will not be able to pull it up right now. But as I said, the Q4 is promising. We are almost doing double — more than double than what we did in the first-nine months in this quarter. So that way little improvement can come in Q4, but the substantial improvement, I’m sure will start showing from Q1 of next financial year.
Sani Vishe
Thanks a lot, sir. Thank you.
Operator
Thank you. Thank you. The next question is from the line of Mayank Agarwal from Scientific Investing. Please go-ahead.
Mayank Agarwal
Yeah. Thank you for the opportunity. So I have question on the margin pressure on the revenue book from the paint and the FMPG segment.
Janumahanti Lakshmana Rao
Okay, go-ahead.
Mayank Agarwal
Yeah. So how much of the revenue book has led margin pressure, especially in the paint and the FMPG segment you are facing right now?
Janumahanti Lakshmana Rao
See almost paint segment contributes towards even today 48% of volume and lube is 24%. In terms of lube, we are reasonably all right because the product quality is very demanding in lube compared to paint. So the competition is not so severe in loops, hence price pressure on loop packs is not so much. But in paints being a very thick product and a lot of suppliers are already-existing in the country, there is always a price pressure on paint industry — sales to paint industry. In Food and FMCG, as we are progressively adding new products, for example, this year, one of our biggest catch is, which is now coming in you might have seen in the markets, but it is a four pack of four pack, I think it is each one of KG or 1 KG. They are packing in our 10-liter square pack and that’s become a very big hit in the market and their volumes are increasing and the indications are whatever we sold this year might almost at least grow by 40%, 50% next year. So is a big catch and we have been talking about for last two years. Now the clearance come for and the numbers what they indicated are also very encouraging. So in food and FMCZ, going-forward, better utilization and the molds were made more than a year-ago for. And in the case of, the molds were added recently and that product is also doing good. So going-forward, even food and FMCZ, we anticipate double-digit growth from 7.3% this year. It should be in the range of around 10% to 12%.
Mayank Agarwal
Okay. Thank you. And on the new we have done, like will it work on the same margin or like the more or less like as it was
Janumahanti Lakshmana Rao
In paint or
Mayank Agarwal
The new paint capex we have done?
Janumahanti Lakshmana Rao
See, in the paint industry, as of today, the EBITDA margins are below the our overall company average. So increasing the paint industry growth only in the case of Adity Group and Asian Paints where quality and IML being highly used, we have decent EBITDA margins. Other industries where we still use screen printing, there the EBITDA margins are not so encouraging. So that is one of the reasons we let go some of those opportunities and concentrate more on high-value add like FMCG food and now pharma.
Mayank Agarwal
Okay. And can you give more light on like how you are doubling the capacity for the pharma segment?
Janumahanti Lakshmana Rao
See in pharma segment, it always goes with starting with audit and then followed by stability test and then machine trials and then a batch test after that commercial supplies will start. So I’m very glad that 12 of the reasonably big pharma players in India have already audited our premises in the last 10 months and all of them cleared our premises for the next steps, that is stability and even some of them completed the trial large supplies and commercial quantity started from somewhere in end of December and the reflection is shoot-up of turnover in Jan because some of the products have become commercial. Same trend if it continues, we hope good numbers to happen in Q4 and even from Q1 onwards for next year. Another thing is three more products I have mentioned in the press release today, squeeze lock — squeeze lock CRC, 28 MM CRC. We are working on one more — two more SKUs for a — another large MMC in India. These four, five products are in the annual. The malls are in the final stage. Samples have been approved, now line trials are going on. Maybe April onwards, they will get into commercial production, shooting up our numbers in the Q1. So if things go well, pharma can be a star contributor in the next couple of quarters. But that’s not the end. In fact, it is a beginning because as you know, pharma — packaging is a very huge market of more than INR3,000 crore INR4,000 crores per annum. So what we are looking at is INR30 crores next year is not even in 1%. So — and also added to that, we are very — I wouldn’t say fortunate, we have been identified even by a US company to procure canisters from us. I have been talking about our products which are unique compared to our competitors in India, especially in the canister segment. We have single piece canister with laser marking on it, whereas others are still using paper label and double piece canisters. So these are what mechanisters models which are used in USA. And in fact, right, as we are talking today, one consignment of 1 million pieces of canisters are being exported to US directly. So that opportunity also opening up our ability to aim at US market directly instead of going through Indian pharma companies. So we are even exploring those opportunities. I wouldn’t say that’s very huge as of today, but going-forward, these numbers also will be — this segment is another area which can add value to, both in terms of revenue and profits to the company.
Mayank Agarwal
Okay. And if the last question, if I may ask, like are we sticking to the old growth in the margin target given?
Janumahanti Lakshmana Rao
Yeah, we thought of reaching better than this, but probably we may end-up somewhere close to 8%, 9% this year because what we thought in terms of ABG, we lost in Asian Paints, half of it at least. So that is what has caused difference in our numbers projected and what numbers we are achieving, but still will be close to a higher single-digit in this year and definitely be in double-digits next year.
Mayank Agarwal
Okay. Thank you so much. Thank you.
Janumahanti Lakshmana Rao
Thanks.
Operator
Thank you. We’ll take the next question from the line of Richard from Equity Master. Please go-ahead.
Richa Agarwal
Sir, thank you for the opportunity. Sir, it seems that the pharma is shaping up well and you had planned some kind of capacity expansions. If you could give some kind of capex target for FY ’25 for FY ’26 it would help. And also with the current capacities, is the depreciation and interest cost the same run-rate can be considered with whatever capex plan was — capex was planned for FY ’25?
Janumahanti Lakshmana Rao
Yeah, because we have depreciated almost like we’re going to depreciate, I’d say, almost INR50 crores in this current financial year. So-far already INR36 crores has been depreciated, probably another INR1215 crores would go off. So next year probably it will inch up a bit, but the new addition of plant and machinery, I don’t think will be to the tune of INR120 crores INR130 crores, which we have been investing in the last three financial years because the next year plan is only to pharma capacities, which may not be like INR60 crores what we did in Phase-1, it may be to the tune of INR30 crores to INR35 crores, but that is enough to double the capacity because land and building is already in-place. So only for additional machines and molds, the investment will be definitely less compared to a greenfield project what we invested last year. So additional INR25 crores to INR30 crores investment will certainly happen in pharma going-forward. But that won’t be still enough. Maybe we may have to go for expanding — adding new buildings in the Sulthanpur premises by spending another INR8 crores to INR10 crores. So that addition, if we take — that’s not been decided, but looking at the trend what is happening, we may have to start that immediately to catch-up with the growing demand for our products. So if that happens, probably investment in pharma can reach up to INR40 crores. So INR25 crores to INR40 crores is investment we are planning for pharma next financial year. And the rest of the investments are only balancing in nature in — either at Cheyar or or, we already made substantial investments. Mahad may have some investment of INR10 crore INR15 crores, but rest of the plants, it is only balancing equipment. So I am thinking at least on the paper what it looks like our investment next year may come down substantially from INR120 crores for the last three years, including this year to around INR6065 crores for the next financial year.
Richa Agarwal
Okay. And sir, my next question is on the food and FMCG segment. It seems like this used to be a key driver with more than 15% growth and almost 20% kind of growth used to be the guidance and I think you mentioned some — in response to some question of 10% to 12% kind of growth, which seems quite low and it will be difficult to push the volume growth at an overall company-level given what’s happening at the paint segment in the segment. So could you just add — could you just elaborate on what’s happening? Has the competition increased or have you acquired you acquired new customers? Is this the best that we can expect 10% to 12% in food and food and FMCG?
Janumahanti Lakshmana Rao
Yeah. I answered this last quarter also. Yes, there is an increased competition, especially in the and of the country, small players with a couple of machines and a few product range they are entering, especially in ice creams and dairy products where there is a need everywhere. So that is one certainly a reason. But our confidence for better growth next year is because our plant at-will start manufacturing thinol products or food products from April or Max May this year. So they will start — that will start contributing. And another confidence is good numbers of this and surf axle products which we are going to manufacture already for which the orders and molds are ready and supplies have started in the case of and other products might start sometime in the next couple of months. So that is why I’m confident next year sales also can be in double-digits. Yes, I agree with you like in the paint industry, probably the trend may not be so sharp in terms of using orders from existing paint companies because they’re also shifting into IML. The good news is last few months, IML sales — I mean, shifting to IML is improving in the paint industry. That makes as a better choice for players like Asian Paints or even KNP and because of the robotic capacities what we have, our in-house IML capacities and our ability to develop new designs and challenging artworks. So that makes Moltec is a obviously a better option. So we anticipate at least if not a growth in the other paint companies, we may not lose our share in the next financial year is our strong belief. If that happens, ABG will continue to grow because they have expansion plans and they are indicating big numbers to happen in the next financial year. If they are partially true or at least reasonably true, we may see a reasonable 10%, I mean, double-digit growth in paint segment as well. If that happens, our prediction to cross 11% growth next financial year shouldn’t be a problem. But I keep my fingers crossed on that.
Richa Agarwal
Okay. And sir, you mentioned your capacity is at 50 plus, but if you could give the exact capacity and utilization expected this year that would help.
Janumahanti Lakshmana Rao
Capacity situation is still around 70% overall company-level, but the plants at Chair and Mahad, Naya, especially Panipad, which have been created in anticipation of ABG’s growth. There the percentage and still 60% compared to the initial capacity, but we have been adding machines there in anticipation of their growth next year. So if you consider that also, it is below 50% utilization. So once that start moving up to 60% or 70%, we will be seeing the power heads distributed over larger output and the market.
Richa Agarwal
But what is the base capacity, sir, what is the base capacity is — I know the
Janumahanti Lakshmana Rao
Base capacity is more than 53,000 tonnes as of today per annum. And this year we may hit close to 40,000. We are already at — sorry, 28,500. So probably we’ll be hitting somewhere close to 39,000.
Richa Agarwal
Okay. Okay. Thank you and all the best.
Operator
Thank you. The next question is from the line of Ashutosh Ketan from Asian Market Securities. Please go-ahead.
Ashutosh Khetan
Yeah. Hi, sir. I wanted to ask the contribution of IML in value and volume terms for this quarter and in terms of value paints,, FMCG and pharma contribution.
Janumahanti Lakshmana Rao
Yeah, yeah. I mean, in terms of IML, the numbers are going up as — because the paint industry also started adopting IML in a reasonable way. And of course, HTL is also part of it. So overall labeled containers have grown-up from 64% last Q3 to 73.4%. Overall for nine months, it’s also substantial, 63.6% to 69.3%. So almost a 10% improvement in the labeled containers compared to last year, there is an improvement. And coming to volumes, I think I already mentioned to you, paints contribute in this Q3 45.5%, 22.2%, food is 18.4%, QPAC is 12.7%. So put together food and QPAC is almost now crossed 31%. Pharma is 1.19% in terms of percentage in the turnover side. In the volume side, paint is still 48%, lube is 24.6%, food and FMCC is only 12.4%, QPAC is 14.4%, pharma is 0.6%.
Ashutosh Khetan
Okay, sir. And what will be the volume guidance for FY ’25
Janumahanti Lakshmana Rao
FY ’25, we thought we will be in the region of 10% to 15%, but probably it looks like we might end-up close to 8% to 9% growth overall in this volume growth concluding in March. But coming to next year, we are confident we’ll be in double-digits because what I explained to the previous question.
Ashutosh Khetan
Okay, sir. And lastly, on the pharma, what will be the revenue potential for ’27?
Janumahanti Lakshmana Rao
Yeah, I see ideally, we wish to see a triple coming over there, but that may be too ambitious. But it is possible, it’s not impossible because the way pharma market behaves is their approval system, their trial system is pretty long. Sometimes it takes almost one year to get into real commercial supplies. And that phase is being completed for almost 10 to 12 clients and they are in the process of giving us try orders, some of them giving commercial orders. That is why there is a in the performance in January. So that accumulation starts from, let’s say, next year, the numbers can double at least if not triple. So if we achieve INR30 crore INR35 crores in next financial year in pharma, we can aim at INR60 crores to INR65 crores for the following year. That is
Ashutosh Khetan
Got it, sir. Thank you so much. Thank you.
Operator
Thank you. We’ll take the next question from the line of Rashni Kalani from ICICI Prudential AMC. Please go-ahead.
Roshni Galani
Sir, one thing — thanks for the opportunity. One thing I wanted to ask was with respect to the capacity addition that we are doing in for FMPG, do we have active commitments from our clients because they have already lost some market-share there?
Janumahanti Lakshmana Rao
Yeah, actually some of the products will go to Badi leave us there is orders which we are sending all the way from Hyderabad. So part of this can be moved there, part of the moles can move there. Even is also filled in the north, a part of that can start a square pack is open for us because as you know, we have the patent and able to push the patent right in the Delhi High Court and several other high courts. So the square pack demand is still improving there in the north and those will be met through Upanipad plant. So coming to the regular ice creams and dairy products, we certainly have our own sway in terms of our quality and consistency and especially when volumes are involved, we are the most reliable supplier for anybody. So we certainly feel that starting in North will give us better momentum in food and FMC growth
Roshni Galani
Okay. Thanks.
Operator
Thank you. Thank you. The next question is from the line of from Ambit Capital. Please go-ahead.
Jaiveer Shekhawat
Sure. Thanks a lot. Sir, first question, if I track your guidance on volumes over the last couple of quarters, I mean, this year expecting to possibly end the year at low-teens and the guidance for the next year was possibly somewhere around mid to-high teens. But I think over the last few quarters, we have seen that there has been consistent decline in the overall volume growth guidance. So are there any structural challenges that we are facing because of which now even for FY ’26, last quarter, you were talking about possibly mid to high-teens and now you’re possibly down to double-digit growth. So any structural challenges that we are facing or do you think you’ll be able to get back to about mid-teens growth next year in terms of volumes?
Janumahanti Lakshmana Rao
See, to be very fair and clear, I mean, answer to you. Our — we never anticipated a drop-in Asian Paints volumes in this year. So that growth, they contribute almost 30% 33% of our sales even today, 30%. So a big 10% drop-in the volume is — hit us by almost 3 percentage points. So that is one of the reasons why we have not reached the projected volume growth in the current financial year. And the ABG numbers were picked-up well in the first-six, seven months, but they are a little tipid now. But of course, for any brand to sustain and grow, it will take some time and we are bullish on that because their commentary and their indication to us is a good number of growth coming in the right from Q1 onwards. So our two things majorly, one of them is our misplanning and printing capacity or a rejection of a printing machine in a vital time has made us lose some part of business both in and thin wall that is one reason. And second reason I stated Asian Paints loss of business. These two are the major reasons why we couldn’t reach at least close to 12% to 15% bracket, which I thought would definitely meet. These are the two reasons, frankly, I should admit. Having said that, with the addition of print capacities in February, which is starting of the season and that capacity is also substantial. It’s. It’s not like 10%, 15%. We added almost 40% extra capacity now, which will smoothen our supply situation in IML labels and won’t disrupt any supplies to clients with whom we have to say no in the last season. So I hope that is one big correction we have taken. And I would like to be cautious this time because we don’t know-how things will happen in the paint segment going-forward. So keeping that in mind, I’m talking of lower-growth. But internally, we are still aiming at least 15% growth for next financial year. But I’ll be glad even if it is more than 10%, mainly fueled by pharma, if it’s fueled by pharma, that will be much better satisfaction and you know in terms of and profitability also.
Jaiveer Shekhawat
Sure. So since you’ve already mentioned you’re targeting anywhere between INR30 crore INR40 crores next year in terms of revenues from pharma. So that contribution would possibly still be sub-5 percentage of your overall revenues. So I think majority of the heavy-lifting will still have to be done by your existing segments. So when you say that 10% to 15% volume growth, how do you see the volume growth across different segments?
Janumahanti Lakshmana Rao
See, as I said, I’m not very confident about the paints. As far as ABG is concerned, I’m confident that numbers will definitely go up because the indication given to us is they’re talking about 40% 50% increase in our pickup, if not there is overall demand from pickup from our plants they indicated. So that will be a substantial improvement for us if that happens. But Asian, we are not very sure how the their plans of procurement are going to be. But definitely, we will never lose beyond if we lose 5%, 6% or 10% or probably we may get same level of demand from them next year because they are moving more-and-more into IML. I mean currently more than 10 packs are shifted to IML and where we are standing to gain in terms of volume business. So hopefully, we may stabilize with Asian this year and EBG might add decent number to pull us up into double-digit growth in paint segment as well. But loops will never be such a player. Loops will be hardly 2%, 3% even side. So as you correctly said, the growth has to come from paint, food and FMCG and QPAC. In QPAC, we are confident because the Surf XL and a couple of other of opportunities we got, which are going to be in big numbers. And we have also expanded the product range, added two liter and three liter pack in square and are ready and samples are being tested by few big clients. So those numbers might start adding and numbers will certainly add next year and Paniput — so I’m positive about a double-digit growth in food and FMCG. Only one area where we may not see double-digit is loops. So if other product lines can pull it up, we will be definitely in a decent growth next year.
Jaiveer Shekhawat
And sir, in case of thin packs, over there as well, given your commissioning capacities both in North and West, I mean what is your expectation for your high-margin Thinpacks overall volume growth.
Janumahanti Lakshmana Rao
We should be close to 15% in the thin packs next year.
Jaiveer Shekhawat
And sir, what’s really driving that because we have actually not grown much this year, possibly in low-single digits. So what’s driving your confidence for a 15 percentage growth next year?
Janumahanti Lakshmana Rao
No, this year, our tonnage wise, it is 7.3% for the first-nine months and hopefully, we’ll close this year-by around 8%, i.e. or 8.5% in. So that is improvement in the last quarter and this 4th-quarter because of, as I said, and Kissanjam started. And those numbers will shoot up in the next Q1 onwards. So I’m confident for double-digit growth or maybe — I mean, I would say 10% for sure. It can also be 15% if our North plans go as per our plans. If things go as per our plans. Coming to CUPAC, I’m confident it will be again, 18% 20% kind of growth next year. So that is one number which will pick-up the lube or Lasa flu because in terms of value addition also, lube and Square packs are almost similar. So that way growth might take care of lube. So all depends upon how we fare with Asian paids next year. If our numbers at least stay where they are this year, we can aim at definitely a double-digit and a decent better numbers, which we’ll see only next year.
Jaiveer Shekhawat
Sure. Sir, last question, if I see your other expenses, Y-o-Y, these have increased by around 30 percentage while volumes have only grown by 7 percentage. So could you highlight what’s leading to this increase, substantial increase in other expenses?
Janumahanti Lakshmana Rao
What do you mean by other expenses? What are all the items that you have taken?
Jaiveer Shekhawat
Sir, as you disclose in your BSE filing itself, the line-item other expenses just below depreciation and amortization expenses. So this other expense is about INR3637 crores this quarter as compared to about INR28 crores in the quarter last year.
Janumahanti Lakshmana Rao
Yeah, a couple of reasons. One is to sustain our patent rights. We have been filing cases and spending on legal expenditure. That is one reason. And legal exposure is more than a crore where we press the various coats to get the injunctions and close the operations of three or four competitors who have copied our square pack. So 96 lakhs to be precise in the first-nine months. So that is one reason for expenditure increase. And general expenditure that includes travel and trade fairs. We are now participating in trade fair in Chicago. We have participated in sent a team to Europe for a CPHI, that is pharma exhibition and shows. So we are now participating in all the pharma shows across the country. So these are the reasons for increased other expenses.
Jaiveer Shekhawat
Sure. Sure. Thanks a lot, sir and all the best.
Janumahanti Lakshmana Rao
Thank you. Thank you.
Operator
Thank you. Thank you. The next question is from the line of Manan Madlani from Wealth Management. Please go-ahead.
Manan Madlani
Yeah, hi, sir. Thanks for the opportunity. So assuming the next year, Asian pin volume grows back to normal level, do you see any problem regarding the offtake from the Asian pin? Like will there be any switch from our company to that related-party companies or anything like that?
Janumahanti Lakshmana Rao
No, hydro, don’t want to comment like this. Actually, it’s not that our volumes are going to their related-party, I’m not saying that. It is our maybe pricing inability or some other advantages what they foresee in other suppliers is causing loss in our volumes for the last couple of years. But going-forward, I don’t think it would happen further because as I said, IML adoption is improving in Asian trains. Earlier, it used to be almost nil, is now currently at least 10% to 15% of their volumes, what they’re picking-up from us is in IML. And going-forward, if those numbers increase, of course, others also will follow suit and develop their IML capabilities, but we being the leaders in IML and able to work on challenging artworks and challenging label technologies, we may stand to gain. That is what positive we see in Nation Paints going-forward. So how they decide the market-share are dividing their share is definitely based on competitive pricing and their commitments. In both commitments, they are always stable with us and the variation in the business distribution also won’t become zero. It will become, let’s say it’s between 15% to 25%. If your pricing is competitive, I may get my 25%. If my pricing is not so competitive, I may get 20%. I’m very costly, they may get still 15%. So that way they are very fair in business allocation. And some reasons can still be there why we may be losing. But I think pricing or our costs of manufacturing being little on the higher side because of our R&D efforts, our design team, our robotics costs, we are little expensive than other players. Maybe that is one reason why we also internally should agree why we are losing part of our business.
Manan Madlani
Yeah. And in terms of, what kind of commitment they have given for next year?
Janumahanti Lakshmana Rao
So it’s not a commitment, their volume growth, they are projecting 40% to 50% compared to this current financial year and we are ready with this machinery and molds. I mean, we are almost ready. Most of the emissions have arrived, couple of them are in-transit. By February end or March-end, we’ll be ready with that volume. If their volumes start picking-up really what they are predicting, we will be benefiting considerably.
Manan Madlani
And for, how much of the total volume is IML?
Janumahanti Lakshmana Rao
About 20%. About 15% to 20%.
Manan Madlani
So it’s twice what Asian is getting.
Janumahanti Lakshmana Rao
Asian today also, I don’t think it is about 10%. I don’t have correct numbers, but I guess it should be around 10%.
Manan Madlani
Okay. And one last question on the pharma side. So do you see in next three to five years getting market-share of somewhere around 5% to 10% or do you foresee that kind of ambition or I?
Janumahanti Lakshmana Rao
Yes, we are definitely nurturing such ambition because what I’m really excited about is in the pharma industry, new product development is a long process. Most of the — I don’t want to comment about the competitors because they’re well-established and doing a pretty good job themselves. But coming to the new product development, we can cut really fast because of our in-house tool room and our big design team, developing a new concept, for example, the Chamber product what we developed for one of big pharma company in Hyderabad, it is really a challenging task. Within four weeks, we develop two sets of molds and those two components have to be assembled together to make a single piece, which will serve with the dual purpose of low-volume here inside and big handling ease of bigger size for handling. So that challenge we have solved with our own internal design for which we have now filed a patent and that shows within a year, less than a year’s time, Moltec is not only establishing the confidence — gaining the confidence of more than 10, 12 pharma companies are able to file a patent application. And that is where I see in pharma, we can make a big change because anybody who want to develop a new product, they will look at now. Already second client who has been very happy with one fast development has giving us — has already given us three, four products for development and two more products that three we have completely developed and started commercial supplies in January and is given two more products. So when they see the speed at which is able to develop, develop corrections and give them a product which they have to go for stability test, send it for trial, supply trials, crancy trials where they have lot of time wasted. So if we save the development time by couple of months, that is what makes pharma to look at Maltech with interest. So — and we are using world-class facilities and nowhere we are compromising on quality or kindliness. In fact, if you guys come and visit our plant, you will think it is a pharma company. That’s the kind of facility we have created. So world-class facilities, world-class tool room and fast development and innovation is what we are bringing to the table in pharma packaging. I’m really excited that is going to be the game-changer for next at least for a decade for more tech.
Manan Madlani
Okay.
Janumahanti Lakshmana Rao
That’s individual expectation.
Manan Madlani
Okay. Fair enough fair. So on the pricing side, do we still on the premium side for pharma segment as well compared to other peers?
Janumahanti Lakshmana Rao
See, wherever we develop a new product, we can command a very good pricing because obviously the risks of tooling and assembly machines what we invest definitely need for call for a higher-return and always all players are ready to pay with. For a product which are already established, obviously, there will be some pricing or productivity gains you have to show to attract. So both the gay deals we have taken care. One on the innovative product side, we are able to gain good numbers and good pricing. And on the conventional products, we have gone up with higher cavitation molds. See, somebody is having eight cavity or 12 cavity mold, we have started 24 or 36 cavitation. So obviously, our per crore investment per day production will be much better. It will not go in the same proportion. So we have gone up with high cavitation, high-speed assembly machines to beat pricing if necessary in the conventional products. So in both sides, I think we have an edge.
Manan Madlani
Okay. Fair enough. One last part. So given we want to grow this much in next three to five years, do we have enough bandwidth or we need to improve that? And second, what would be the ROIC on the pharma side of the segment?
Janumahanti Lakshmana Rao
ROCE, what we generally monitor is definitely much better in pharma. In terms of our EBITDA, I can say if it is 38 or 37 in current product mix, anything above 100 to 150 is possible in pharma. So that every KGF pharma would be adding decent numbers to our overall average. So in terms of ROC also, it should be more than, than 28% 29% if our product range goes into a reasonable utilization. For example, in the products like canisters, the return or EBITDA is much higher. It’s even crosses 50%. So — but their sales are picking-up, are yet to see big numbers. And those volumes are yet to pick-up. Now one US client we are supplying 1 million pieces a month and few more clients in India have given clearance for trial lots. For them to become commercial lots and become a regular product, it may take three to four months. So going-forward, if the canister sales simply increase, our numbers will shoot up. But I can’t see where it will be right now because unlike painted lube industry, we are very new in pharma. So how the numbers will shape up only time can tell. I also mentioned this six months ago. But today, I can say with conference because what we have seen in January is a testimony of our confidence. And going-forward, if a couple of such things happen and four more new products we are introducing, molds are almost ready, some of the samples are under testing. And these products become commercial, let’s say, by April, May. From June onwards, we can see another spike in pharma numbers. So like this, every addition of a new commercial product, we’ll be adding numbers in pharma. And we are taking the challenge of new product development as an entry point into big pharma companies. And they’re definitely delighted to see the speed at which Multech is able to develop a new product or alter an existing product to suit to their lines. This is where we. For example I tell you somebody want a regular 40 ml bottle which is a I mean kind of a commodity nowadays. 40 ml bottle with 12 grams is what is there with the mould makers all across India, somebody want a 14 gram because the client insists on some MVT or test or something where you want more thickness. And while the other mold make — other supplies take two, three months-to get that core rots changed and cavities change, we do it within two weeks. So they cut time and they will be able to give samples faster than the other company where they are competing with and they will be able to gain advantage with their end client. So that is where they see value with Moltec. That’s happening with couple of clients that itself given us a confidence that if it happens to — with 10 clients, if not all, it can really shoot up our demand.
Manan Madlani
Yeah. Okay. Thank you so much, sir. That’s it from my side. Wish you all the best.
Operator
Thank you.
Janumahanti Lakshmana Rao
Thank you.
Operator
The next question is from the line of Mehul Panjwani from 40 Sense. Please go-ahead.
Mehul Panjwani
Hello, sir. Thank you so much for the detailed answering of all the questions. Am I audible, sir?
Janumahanti Lakshmana Rao
Yeah.
Mehul Panjwani
Yeah, one question because I’m new. I’m tracking this company very lately. So I just want to understand a couple of things. What is the difference in IML and the normal other for paint industry? How — why does the paint manufacturers go for IML? What is — I mean, I’m very in this question. So if you can elaborate a bit.
Janumahanti Lakshmana Rao
Yeah, yeah, it’s a very basic question, but I think as you said, you are late in following-up with this industry. You don’t have the full knowledge. Typically, the decoration of pale is done by screen printing all these years. Then the next step was heat transfer label. That means you print artwork on a label and by heat, you transfer the ink onto the container. That is HTL. That is a step forward. But in 2010/11, Moltec is the first company to bring in more labeling concept to India along with robotics and even in-house manufacturing of IML we started soon after. So because for every container, you need a label, it is impossible to import these labels. So we have developed this technology to even print and die-cut the labels in India in 2011, 12 and that has introduced the concept of world-class IML decoration in this country. So in this, you can print photographic finish, you can take a picture and develop it in multicolor printing and print it on a label and dikert it exactly to the developed surface of the product and then you — with robotics, you put the label before the modeling and molding happens underneath the label and it fuses, the label fuses to the container. Thereby when the product is molded itself, it is completely decorated and ready to go. So no human contact, no post operation, no contamination that makes IML world-class over any other way of decoration. And it covers the entire area of the container, unlike HTL where you have to leave at least 20% of the area for the squeezing heating area. So you will end-up covering the surface only 80%, whereas in IML, you get 100% — 95%, 98% surface coverage. And it is permanent, whereas HDL by some acidic or alkaline product contact, the paint may go off because it is obviously a transfer from a — from a label to container, whereas in IML, you are printing it beneath the label, beneath the label and the label is stuck onto the container. So somebody need to remove the label means he has to really scratch it vigorously even then it won’t come out. So it is a permanent integration compared to other modes. I think I give you detail
Mehul Panjwani
Yeah. Yeah. Thank you so much, sir. A follow-up question on this and one more question. So first, I’ll go with another question, sir, what is it — I mean, again, this may be a question again. So why have we — I mean, throughout the call, we are talking about that we are entering pharma and we have entered last year, I think maybe three, four quarters back, we have entered the pharma space and we are progressing very well. So that’s a very good sign. But I have a question which is again basic that why have we not entered pharma because has been there for maybe more than a few decades. So why is it suddenly we are entering pharma right now? And is there any particular reason or opportunity?
Janumahanti Lakshmana Rao
No reason. It was basically we are growing in IML and there was a lot of things on-hand, including ABG projects were given to us and it’s like more of a bird on-hand. So it was consolidation was all-the-time on these products and IML products. I would — I wish that time goes back and we can start pharma five years ago, but that’s not being the possibility. Whatever we could do, we did it last year, actually took us one year to set-up the plant and it went commercial about 10, 11 months ago. So anyway, never — it’s always better late to be there. So having started, we are now finding that our strengths of mold making, concept designing, product development has a long way to go in pharma than any other segment. And the beauty of pharma is the stickability is very-high once they are with you in terms of new product especially, their dependence on you is still high as high as your dependence on them and the stickiness gives you a comfortable growth wherever you could prove your metal. So that gives us a more challenging and better margin spare also. Obviously, we are more excited in that field.
Mehul Panjwani
Right. Sir, thank you so much for your candid reply. Now regarding pharma, the opportunity size may be three, four times what is there in paints? Is it fair to assume that or even more?
Janumahanti Lakshmana Rao
Three, four times of what
Mehul Panjwani
Or more than paints the opportunity size for more?
Janumahanti Lakshmana Rao
No, as of today, paint segment in my opinion is much bigger than pharma because most of the Indian pharmaceutical products are still in what you call that metal film packing and what is it called that aluminum foil packing. So whereas abroad in US and Europe is over, containers are used for tablet packing, powders, tablets, even liquids are in-kind of the HDP and pet bottles. So in India, it is a long way to go. But once the Indian pharma — now these rules are changing, government is — you might have read recently in Badi, they stopped some 25 units, which are not following pharma standards while manufacturing medicines. So government is also tightening belts on the way pharma products are being produced in India. If the changes come in, there will be more-and-more demand for pharma containers compared to what it was a few years ago. But comparatively, in terms of rupee size, still in my opinion, paint packaging is at least 50% to 100% more than pharma.
Mehul Panjwani
Okay. So right now we are — paint is 50%. So can we say that if everything goes well and we are — we are grabbing lot of opportunities in pharma space, pharma space. Can we say that in five years, we would be 20% of our sales would come from pharma?
Janumahanti Lakshmana Rao
In five years, yes, it is possible.
Mehul Panjwani
Okay,
Janumahanti Lakshmana Rao
Definitely possible because it’s a big —
Mehul Panjwani
A big opportunity
Janumahanti Lakshmana Rao
Segment, more than INR400 cro INR5,000 crores. So what we are talking about is even after five years, we are, let’s say, close to INR1,500 crore crores. Reaching a 20% means about INR250 crore INR300 crores, maybe INR300 crores turnover in five, six years is definitely possible.
Mehul Panjwani
And what kind of competition is there in the pharma segment for?
Janumahanti Lakshmana Rao
Yeah, CG Pharmas, Gary,, there are three, four well-established players in pharma sector. Sriji, I think is the largest and Pravesha was there, but it is in-house company, which has been acquired by — recently by FI. I think PAG or one of the FIS has acquired packaging business and even was acquired by them. So that way there are two big players I can consider is Gary Sheimer that’s a German company having plants in India and CG, which also has three, four plants across India. These two are major players. Gopaldas and Dr Pak to some extent very caps some products. These three companies are also reasonable size, say, INR100 crores to INR200 crore, I think I’m guessing INR200 crores turnover.
Mehul Panjwani
Okay. Thank you so much, sir and wish you very best and I really appreciate the way you are responding to all the questions in a very detailed manner. So thank you so much.
Janumahanti Lakshmana Rao
Thank you. Thanks for your interest.
Operator
Thank you. The next question is from the line of Akhil Parik from B&K Securities. Please go-ahead. Go-ahead.
Akhil Parekh
Yeah. Thanks for the opportunity. And sir, many congratulations on the pharma side of the business. So — but my question is on the paint side. And you mentioned that we have almost lost 10% from Asian Paints. So just wanted to understand thought process of the management given that Asian Paints is the largest paints company of India. Does it make sense to sacrifice a bit on pricing and continue to get higher-volume share from Asian paints? Or it will certainly help in fixed-cost absorption, right, if we are able to get higher volumes from Asian paints. And given that we are already scaling up in pharma, so whatever negative impact it can have will probably get offset by the pharma segment. So that’s my first question.
Janumahanti Lakshmana Rao
Yeah, it’s a business call we have to take based upon our long experience in this field, I’m sure you will give us that credit. So we also don’t wish to lose volumes, but the pricing delta is also something which will hurt us in case we follow their address. But sometimes we do that to gain volumes. It’s a balancing act believers that we are taking.
Akhil Parekh
Okay. Okay. So just a supplementary question to it, like I’ve been reading Manyushi is getting aggressive in the paints business, right, and they are the largest rigid packaging player. And we have not seen, I believe, such kind of a volume drop from Asian Paints in our last two to 2.5 decades of dealing with Asian paints. So would you be able to share some light? Is it because of likes of Manjusri who are competing hard on pricing side?
Janumahanti Lakshmana Rao
I don’t want to comment about them because I don’t have their details with me, how they are competing, but that’s not the reason that we are losing our business. Manjusri is definitely not a big player in pales. They are very big in pet and blow-molding as far as my knowledge goes. In Pale, yes, of course, they made couple of acquisitions or one acquisition for sure I know and they’re supplying to EBG also from one of the plants. So they’re trying to, I mean, enter in the pail segment for sure. I know that. They’re also aggressive in pricing for whatever reasons they deem fit. But that is not the reason why — only reason why we are losing. It’s a combination of our pricing and Asian Paints expectation and other pricing is that dynamics is what creating this loss of business, which we are trying to impress up on Asian Paints because of our quality, because of our consistent new design development. For example, when they want to reduce their weights and go for a cost-saving, it will be Moltec first. We will develop the molds and prove the concept and then others follow. So we take always the lead. Even today, we work with Asian very closely for their new IML products, which are their advertising now and the Cricket matches you see Ultima, and all. We are the loan suppliers as of today. So that way, our relation with Asian is pretty strong. It is balanced between their competitiveness, what they anticipate and pricing what we expect some plus or minus happens. But as a business relation, we enjoy a really good relation with.
Akhil Parekh
Thanks a lot. And just one last bookkeeping question. We have 1,500 tons of pharma capacity, right, at this point of the time and it should be able to start 1,500 tons and that should be able to at optimum utilization, we should be able to clock INR30 crore of top-line from that capacity. Is that correct?
Janumahanti Lakshmana Rao
No, no, no. The minimum pricing of our average on combination of all products. Our pricing will not be less than INR300 to INR350 per kg.
Akhil Parekh
Okay. Okay, got it. That’s all from my side and best luck for coming quarters.
Janumahanti Lakshmana Rao
Thank you.
Operator
Thank you. Ladies and gentlemen, we’ll take that as the last question for today. I would now like to hand the conference over to the management for closing comments. Over to you, sir.
Janumahanti Lakshmana Rao
Thank you. Yeah. I take this opportunity to thank MK and Mr Nitin in particular for this conference call. And I also thank all the participants for their interest and the time they spent in our company’s knowing about our company and our quarterly results. And I thank you also for your good wishes and I wish you all a very happy year ahead and good luck. Bye-bye.
Operator
Thank you. Thank you, members of the management. On behalf of Emkay Global Financial Services, that concludes this conference. We thank you for joining us and you may now disconnect your lines. Thank you