Century Enka Limited (CENTENKA) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to the Century NCAR Ltd. Q4 and FI26 Earnings Conference Call, hosted by Valorium Advisors. 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 this 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 Ms. Purwangi Jain from Valerium Advisors. Thank you and over to you, ma'am.

Thank you. Good afternoon, everyone, and a very warm welcome to you all. My name is Purwangi Jain from Valerium Advisors. We represent the investor relations of Century Enka Ltd. On behalf of the company, I would like to thank you all for participating in today's earnings call for the fourth quarter and the financial year ended, 2026. Before we begin, let me mention a quick cautionary statement. Some of the statements made in today's earnings call may be forward-looking in nature. Such forward-looking statements are subject to risk and uncertainties, which could cause actual results to differ from those anticipated. Such statements are based on management's beliefs as well as assumptions made by and information currently available to the management. Audiences are cautioned not to place any undue reliance on these forward-looking statements in making any investment decision. The purpose of today's earnings call is purely to educate and bring awareness about the company's fundamental business and financial period under review. Now let me introduce you to the management participating with us in today's earnings call and hand it over to them for their opening remarks. We have with us Mr. Suresh Srudani, Managing Director, and Mr. Yogesh Shah, Chief Financial Officer. Without any delay, I request Mr. Suresh Srudani to start with his opening remarks. Thank you and over to you, sir.

Thank you, Parvangi. Good afternoon, everyone, and welcome to our earnings conference call for fourth quarter and financial year ended 2026. I would like to thank our host, Valorum Advisors, for hosting this call. Now, let me first brief you on the operational highlights for the quarter under review. We are pleased to report a strong financial quarter marked by healthy growth across revenue and profits, supported by higher sales volume, and effective pass-through of romantical cost increases, which together contributed to improved operating margins during the quarter. In our tire court business, demand remained robust during the quarter, supported by healthy traction across the tractor and two-wheeler segments. Along with continued demand from truck and bus category. The reduction in GST rates on tires and automobiles also supported demand momentum across the industry. As I mentioned, the sharp increase in raw metal prices following the Iran war effectively passed through by transparent discussions with our customers. Importantly, despite the Iran war, we did not witness any production cuts supported by strong relationship with our regular suppliers. Due to continuously changing geopolitical situations, elevated crude oil prices, and persistent inflation, we continue to remain cautiously optimistic about demand growth in coming quarters. Meanwhile, PTCF approval process moved to the next stage with commercial sales expected from FY27. In the filament yarn segment, sales volume remained robust during the quarter. The sharp rise in raw material prices following the Iran conflict enabled us to implement price increases across all product lines. Consumption of older, lower-priced raw materials along with favorable stock valuation further strengthened our margins. New Madhuryan project and value-added products continue to support margin improvement. While Chinese import at very low prices persist in commodity products, we are encouraged that the DGTR has issued a favorable anti-dumping ruling. We now await final notification from Finance Ministry. On the raw material front, capital-electrum and chips prices rose sharply in March following the Iran conflict. However, renewable energy of our Farooj plant has helped in controlling power costs with additional capacity. Expected to be commissioned in FY27, further reducing the cost. We continue to maintain a strong focus on efficiency improvement. I now request our CFO, Mr. Yogesh Shah, to brief you on financial performance.

Thank you, and good afternoon, everyone. Let me now brief you on the financial results for the fourth quarter and the financial year 2026. For the quarter under review, operating revenue stood at Rs. 484 crores, registering a growth of 9% year-on-year, and a strong sequential growth of 17% quarter-on-quarter. Givita for the quarter stood at Rs. 55 crores, reflecting a sharp increase of 530% year-on-year, and a robust growth of 36% quarter-on-quarter. Vita margin improved significantly to 11.46%, representing an expansion of 948 basis points year-on-year and 153 basis points quarter-on-quarter. Profit after tax for the quarter stood at around Rs. 39 crores, registering a substantial growth of 479% year-on-year and 66% quarter-on-quarter. Fat margin improved meaningfully to 8.15%. Reflecting an expansion of 662 basis points, year-on-year, to 39 basis points, quarter-on-quarter. Total volume for the quarter grew strongly by 14% year-on-year to 2711 metric ton. Within this, reinforcement sales increased significantly by 21%, 2 rupees, 245 crores, While filament yarn sales reported a growth of 3%, 2 rupees. For the financial year 2026 operating revenue stood at Rs 1705, reflecting a decline of 15% year on year. EBITDA for the year stood at Rs 148, registering a healthy growth of 29% year on year, with EBITDA margin improving significantly to 8.67%, reflecting an expansion of 294 basis points. Net profit for the year stood at Rs.101 crores regarding a strong growth of 52% year-on-year, while fat margin improved to 5.91%, representing an expansion of 259 basis points. Total volume for the year stood at 73,692 metric tons, reflecting a degrowth of 6% year-on-year. Within this, reinforcement sales stood at Rs.816 crores, resting a declining of 15% year-on-year, while filament yarn sales were reported at Rs.828 crores, reflecting a decrease of 14% year-on-year. With this, we open the floor for questions and answers.

Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and 1 on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants, you are requested to use answers while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. A reminder to all, you may press star and 1 to ask a question. We will take the first question from the line of Krishnamoody from Penentra's capital. Please go ahead.

Hello, am I audible?

Yes, yes.

Firstly, sir, congratulations on a good set of numbers. So, my question was regarding the PTCS scale-up and the renewable energy expansion, which are both BU and F527. So, I wanted to understand what is the total capex budget for F527 and F528?

So, I understand you are asking for the capex budget, is it? Is that right?

Yeah, for the capex budget of the both, renewable energy expansion as well as the PTCS scale-up that we are planning.

So, renewable energy, we participate through a third-party captive arrangement, group captive arrangement. We contribute only to 26% of the equity of the project. So, that amount is very small. It would be less than under 10 crores in total, depending on the total breakup between capital equity and the debt for the project. So that is the model that we had used earlier, and that would continue for the expansion for the second hybrid project also. As far as other projects are concerned, we are expecting total capex outlay of over 100 crores, primarily going into value-added products, expansion of Mother Yarn project capacity. And also for various reduction of our power consumption as well as reduction of waste for improvement of our operating margins and efficiency. We are also spending a significant amount in improving our fire-related risk post our fire risk at Baruch. Because these are old plants. So, based on the external fire audits, we have taken up a good amount of budget to do some reconfiguration of our machineries to reduce the risk of fire, particularly in the old layout plants.

Okay, got it. So, with respect to that, currently, what is our capital deployed in this project?

In the phase one, we had spent about eight and a half crores as our equity contribution to the hybrid project, which on total was about 16 megawatts in installed capacity, about 15 megawatts, and we on an average get about six to seven megawatts per year depending on the weather and other conditions. And this will be in the similar lines for the phase two as well. Acquisition of land and other project-related activities. So, we expected it to start in H2, most likely in quarter 3.

Okay, got it. And is there any better margin expectations that we are guiding for H2 then?

We do not give any forward looking statements in terms of margins or business results. But yes, it will definitely reduce our power rates. But including the demand and geopolitical situation, And anyway, it has become more a quarter-on-quarter kind of forecast or I mean planning. Because the entire situation has become extremely volatile because of more external factors, which are mostly out of our control.

Okay, got it, got it, sir. Thank you. This was it from my end.

Thank you.

Thank you. We will take the next question from the line of Juthain Parmar from Auram Capital. Please go ahead.

Yeah, good afternoon. Congratulations on a good set of numbers. So, my first question is, can you break that up, the EBITDA margins, how much of it is due to inventory gains, and how much of it is due to, so if you can quantify that a bit.

We will not be able to give that break up because of competitive reasons, but the reason for mentioning that is that our focus is always on reducing inventory in terms of, in highly volatile situation. Particularly in NFI segment where the prices correct more on the spot prices of raw materials. So the purpose of highlighting that is that since we are in a situation where the prices significantly went up in March, we have taken conscious calls and efforts to reduce the inventory.

Okay. So you mentioned this 100 crore capex. Now that is for FY27 or what is the period for this capex? Okay, okay. And we have significant, you know, balance, basically, in investments, about more than 400 crores. Now, if the capex is only 100 crores, has the board thought about, you know, doing something with that cash, basically, maybe by buyback or you announced dividend? And the dividend that I saw is only... It's less than 25% of the earnings. So have you thought of other ways of, you know, basically enhancing shareholder value?

The board are mainly at growth, and we intend to utilize this cash for growth of the business in current and possibly also into the new segments. It could be within textiles or otherwise also. It is being evaluated as such. So, as and when any project of large capex is evaluated Thank you. The discussion is more towards adding, one is to make the business model more sustainable by reducing our costs and making investments which are long term, both in terms of our, for example, purchase of power or reducing our own power consumption, improving our safety, But also, looking at new product lines which are either in line with our technical textiles. I mean, this point has come up multiple times regarding the buyback, and it has been duly conveyed both after the investor call as well as during the AGM, and board in its own...

Okay, so my final question is, so it's good to note that, you know, company is thinking on growth. That is always good for shareholders too. Now, that's it. So we have a capex outlay for 100 crores for FY27. Have we thought beyond that? I mean, is there any plans which are kind of around the drawing table or crystallized for, let's say, FY28 and onwards?

As I said, we can share only what is approved by the board, and that is being evaluated, it is being discussed, and we see opportunities in certain segments where we can grow and also change the profile of the company from the current segment. So it is being evaluated, being discussed, but once it is completely cleared by the board, We will definitely share it with the... Through the stock exchange as well as in the investor calls.

Perfect. Thank you. That would be all. If I have any other questions, I'll come back at you.

We will take the next question from the line of Vepulkumar Shah from Sumagal Investments. Please go ahead.

Hi, thanks for the opportunity and congratulations for a good set of numbers. So, the result of this quarter was mainly due to our old inventory of raw material of caprolectum, and this quarter results are likely to be adversely affected due to rise in caprolectum prices. What is your comment on that, sir?

The volume, sales volume, compared to even quarter three, where our performance has improved the quarter four volume, sales volume are significantly higher. So sales volume is one of the main driver of the better performance in this quarter, which has been aided by some consumption of old price raw materials. But without the volume growth, we would not have We have been able to encache even the... These possibilities of encashing the low-cost and the higher prices in our sales prices. So, I think it is mainly due to the higher volumes and duly aided by some low-cost consumption of raw materials.

No, but those low-cost raw material consumption must have exhausted, and now you must have started using higher-price inventors. So margin will be under pressure in this quarter? I'm not asking for numbers. I'm asking for directional views, sir.

I mean we have been normally talking of an operating margin of about 6 to 8 percent, but given our focus on reducing cost and also reducing our power rates through hybrid powers and renewable power, we now feel that depending on the external scenarios and demand, our operating margin could be in the range of 7 to 10 percent. We cannot give a specific number for any quarter. But, sir, we have actually, we feel that we have improved our chances of improving the operating margins from what we used to convey in our earlier earnings calls.

So, you mean to say delta for operating margin has moved higher if all other things remain constant, sir?

In fact, in a more normalized scenario, it should help the company to generate better margins.

What type of power cost reduction we should expect, once all these renewable energy projects are coming on stream?

I can give you an estimate of our current, for the FY26, our renewable content on the total power consumption was about 36%. Post-hour increase, I mean, the commissioning of additional renewable power, it should go up to about 48%. So that gain would start reflecting, I cannot give it in terms of value, but I think that would give a good estimate that it will increase by almost 12%, I mean, percentage of it is much higher, but 12% of the total power consumption.

Thank you. We will take the next question from the line of Meitri Shah from Sapphire Capital. Please go ahead. Yes, hello.

Good afternoon. Sorry for the basic questions. I'm new to the company. So, currently we are working in the nylon yarn and the MTCF vertical. Is that correct?

Yes, and also we have made an entry into the polyester segment. Through polyester tire cot fabric which is under approval and we also sell polyester industrial yarn to certain segments using the polyester industrial yarn.

And when do you expect the facility of PTF to be operational in FY27 and also if you could guide me through the capex of this facility and the capacity that we are adding in this facility.

This is already operational. So we are currently manufacturing and selling polyester industrial yarn. But the main purpose of putting up the facility was to manufacture polyester tire cord fabric. And since it's a new product and also goes into passenger car tires, it goes through a rigorous and long approval process by the tire companies. So we have moved ahead on that process. And we have made progress during the last quarter. We are hopeful that the commercial sales would start in FY27, most likely in the second half of FY27. We have spent close to 100 tours on this project, and this was commissioned about two and a half years back, where the process of getting the products and other things has already started. And FY27 is when we expect that the commercial sales should start.

Okay, that's good. And with the capacity, how do you see the scale-up kind of happening? So these approved processes are different for just no EMs, or are we just a bit of a color on how we are getting the orders on this side?

The capacity is about 4 kT per annum, and currently we utilize to almost 75 to 80 percent based on the demand from the industrial yarn segment. This also, industrial yarn segment was impacted by the QCO order. There was a quality control order on polyester which was removed. Thank you very much.

And this facility, these products are really more higher in value and with better margins coming in, and you've also alluded to, you're adding more capacity on the Madaya and more value-added products. So, going forward, any sort of targets you have on the revenue growth side and also how you see the margins kind of scaling up, like a medium-term tablet, two to three years down the line?

We, since we do not give any forward-looking statements, I cannot comment on the top-line growth, but as I mentioned in the earlier question, we expect a margin range, depending on other variables of demand, external conditions, and other things, to be in the range of 7 to 10 percent operating margin.

And what kind of volumes, if you could mention, you're targeting for SI27?

We will repeat HQ4 plus volumes, but this is all dependent on so many external factors, but the focus is to keep on utilizing maximum capacities and that also improves our margin because it helps in better spreading of our fixed costs.

And these capacities are fungible, so your value-added products and the non-value-added products can be kind of utilized the same capacity, or do we have a specific capacity for just the value-added products? And if you could help me out with the utilization over there.

No, actually, when we say value-added products, actually, this is adding value to our commodity products, which pays a significant... So, we have an option not to make the valued product, and we can continue to sell the commodity product. Thank you. Our experience is that normally these valued products have less volatility, less competition from imports, and these are more specific to the customer requirement. So, normally, I mean, almost, most of the time, our margins on valued product is better. So, we expect and we would continue to invest and convert in almost entirely the commodity. What are the products that we sell in the market and get into more value added products and also distinct products which give a distinct benefit to the customer. So ultimately, if the customer is able to realize value for his, I mean, fabric or finished products, that translates up to better margin and better volumes for these products. So that is working very closely with the customer. We operated at about 80% for the year in terms of capacity utilization. In the quarter 4, it was about 85%.

And could you explain what percentage of sales currently is coming from your value-added products and how much is the marginal differential you have over the commodity products when you kind of sell the value-added products?

Since we report all, I mean, in a single segment, I will not be able to give volumes, but on an average, about 20% additional margin we realize over the, after the additional cost that we do in converting this into valuable products.

Thank you so much. Thank you. We will take the next follow-up question from the line of Vipal Kumar Shah from Sumagal Investments. Please go ahead.

Where are we in this journey for polyester tire code certification? Yeah, yeah, it's for...

I mean, three or four stages before the commercial approval, we have moved to the stage two, and what the tire companies do is that once they give a clearance to the base product, then they take products and make tires out of it. Those tires are tested over a period and multiple tests goes on. So that process has already started. So the next would be to take it to a larger volume of supply. Before the commercial supply, convert it into more tires, and again the tires will be tested through multiple tests that the tire companies do, and thereafter it will move to a commercial sales.

92,000 tons capacity, what is the capacity for this polyester tire cord, sir, and do polyester tire cord have higher margins as compared to our commodity products?

So, as I mentioned, our current capacity is about 4 kt, 4,000 tons per annum.

Only 4,000?

Yeah, we just entered into this segment about two and a half years back. Because we were only into nylon and the usage of polyester and nylon are different, nylon basically goes into tractor two and three wheelers and partially into truck and bus segment, whereas polyester mainly goes into the passenger car tires. And passenger car tire segments, that's the reason that it is also taking a larger time, because the safety protocols and the approval process are... Thank you very much. The demand for passenger cars and passenger-related products like passenger tiles would grow and which would translate into higher growth for the reinforcements for the passenger car.

And, sir, out of the capex of 100 crores for FY27, what portion would be allocated towards renewable power and what should be... What should be used for capacity expansion and what should be the capacity after this 100 crore capex?

2KT, about 2.5KT, you can say, for the project that would get commissioned. Others are mostly adding value, so the capacity will not go up, but the value addition will go up. And then there is the investments in reducing our consumption, power consumption, power rate, safety, so all that would not add to the capacity, but would add to operational gains as well as efficiency improvements and reducing our cost of production.

So, the ball pass figure which you gave 7 to 10% margin, All these initiatives are taken into consideration, right?

From day one, so part of them would get translated into Q3 and Q4, and based on success of other things, we are expecting that it should, by end of this year, we should be able to, I mean, end of FY27, our margin should improve based on the initiative that we are taking on reducing our costs.

And so last question, when we are sitting on so much cash, why are we not going ahead with a major expansion? Is the market not large enough to absorb the expanded capacity? So what is the rationale behind it?

And as I said, we made an investment in Polyester Tire Court and it has taken three years to get into a stage where we expect commercial sales. So, we have to evaluate projects which, first of all, have growth potential in India. Second, are effectively able to compete against imports from China. And third, I have growth potential for looking at the India growth story. So, we are evaluating projects, and we could, I mean, once it goes through a process of internal evaluation and approval, and approval of the board, we could come up with, either during the year or maybe later part, I mean, somewhere later on, with some larger projects, but these are still at an evaluation stage.

So, last question, out of our... 73,692 tons. What should be the commodity volume and what should be the value-added products?

Thank you. So, around 20 to 25 percent, let me just one second, 20. So, around 20 to 25 percent, 15 to 20%.

Rescue all these value-added products.

When we say commodity product, where the competition intensity is high, that we classify as a commodity product. Where the competition intensity is low and margins are better, we treat them as a value added product. So, that's the kind of internal definition we follow. And that That's when I'm saying this 15 to 20 percent, that's the volume, which is the…

Thank you very much and all the best for the future.

Thank you. We will take the next question from the line of Amit Kumar from Determined. Please go ahead.

Yeah, thank you so much for the opportunity. I hope you can hear me. So this is one bookkeeping question. To begin with, this polyester industrial yarn that you sell, which bucket does this revenue get booked in? Part of the yarn segment?

Yeah, it goes into the yarn. Yarns are all yarns. We don't differentiate now since we are making both nylon and polyester. All kinds of yarn go in the yarn sales value that we reflect, and reinforcement means where it goes as a reinforcement in the fabric form.

Okay, see, the only reason which I am asking is that, you know, while your reinforcement segment has seen a pretty sharp jump in, you know, revenue, but your yarn segment has been, you know, fairly, you know, flattish on a YY basis revenue, I am saying. And, you know, obviously, I mean, raw material prices there would have also sort of gone up. So, this, you know, price hike that we have seen is principally in the reinforcement segment and not so much in the yarn segment.

No, no, it has been in both the segments. Sometimes what happens is the order position that is on books, because... This happened more towards the middle of March, and it is not, I mean, it continues in, so it could have a, I mean, in some cases the reflection would come early, and in other cases, I think it is more to do with the timing of what is on the books. At what orders have been booked and because whatever we have booked at rates before we increase the prices, that we have to honor and we have honored always we do that. And so that part would more reflect, only partially it would have reflected in one segment and in more quantities in the other segment.

So just to sort of clarify, it would be fair to say that prices would have sort of continued to increase going into 1Q as well. Actually, both raw material as well as finished product prices. It is still very volatile.

Yes, it significantly jumped by end of March because there was complete lack of clarity on availability of material. I think that became a kind of a panic thing. So, everybody had a panic, whether for us also it was there, whether we could continue with our production or there would be a disruption. Similarly, it happened to the our customers and similarly to the raw materials for our suppliers. So, the entire value chain was Ta-da, ta-da.

I understand that. What I am basically trying to understand is the present situation. So, obviously, now you are basically saying that, you know, the availability of material is not an issue anymore. That, you know, question is settled. Material is, you know, raw material is basically flowing through to you. And I presume to other, you know, companies as well, hopefully. But, you know, there is still a pricing, you know, question that raw material prices have, you know, gone up, you know, quite a lot. You had, you know, for some time you had, you know, low price inventory, but now I presume you would not have. So the question is that, you know, have the end product prices also sort of reflected the higher raw material prices in April, May?

Yes, as I mentioned, we have been able to pass through the increases and very rarely where we thought that either the segment or the customer is not able to pass, we have said that we are not able to produce for them because that kind of sudden increases cannot be observed in our books. So, the pass through to a large extent has been... Which started in March, has continued based on the pricing of raw materials, which prevailed in the, up to, I mean, April and May.

Understood, sir. Thank you so much for this.

Thank you. Will we take the next question from the line of Chandresh Malpani from Niveshay. Please go ahead.

Hello. Good afternoon, sir. Am I audible? Thank you for the opportunity, sir. Sir, first question is on the, you know, PTCF market size. If you can help us understand the size of the market in metrics sense.

I mean, there's no... Authentic number, but in our estimate, the market size is close to 25 KT. Most of it, almost 80 to 85 percent, 80 percent of it is imported.

And the second question is on the volume growth for the quarter. Because you mentioned in your remarks as well that due to DST rate cuts, there was a good demand for the replacement side. So maybe this quarter would have shown some volume growth on that side. And how are you seeing this trend of DST rate cut? I guess this could moderate, right?

We immediately saw, if you see the Q3 numbers also improved compared to Q2 mainly because of the growth and good traction mainly from the tire demand, tire side. So that fully played out in Q4 and even before the Iran war and even in March since we did not have to cut production, the traction and demand, both GST cuts continued. And as I mentioned, the mainly the growth driver, the outliers were tractor segment and the two- and three-wheeler, and tractor segment was on back of a very good monsoon in last year. So which gave, if you have seen the tractor sales numbers, they were at all-time high in FY26 in terms of both OEMs and I mean even exports. That, I think, was a key driver. Even the two-wheeler sales crossed the pre-COVID-level retail sales volume, and there was, so now going forward, we expect that it could be slightly, the growth may not be to the same extent, but one of the key, I mean, variable or something which we are keeping track of is how does the monsoon. And the crops come out, and in terms of its impact on Indian GDP, because that will be a key for this demand to continue in these two segments, because both of them, whether it was two-wheelers or tractor, was again driven from the rural demand, and rural growth is the key to continue on that. Other factors being... Since our segment, I mean, one of the large consumption also goes in the truck and bus, if the overall volume growth continues in terms of capacity expansions of the other industries and the truck demand continues to be good, it could have some compensation for lower demand in the other segments.

Okay. Got it. And sir, my last question is on the, you know, when you mentioned about the nylon filament yarn anti-dumping duty part, so you also mentioned that your segment is not quite affected because we are in value-added side, but let's say other duty comes in, so how much favorable, you know, that thing would be for us on the realizations, maybe, and secondly, if you can, you know, also highlight what would be the quantum.

Based products or the commodity products to value their products. When the base product goes up, the valuated product prices also go up, and that would have a favorable impact on our financials, I mean, financials for the domestic industry overall. And I am not able to quantify that because first of all, it is not still to be notified, and we don't know how China or any other country would react to that post, if I mean, if it gets implemented and notified, what kind of...

Okay, but let's say the FOB value as of like before the duty scenario and current domestic, what would be the differential in percentage if you can put it out?

What has come out as a notification, talks of between about 70 cents to… Thank you. This is a waiting prompt. 20 cents to 80 cents. I mean, so it is fair to assume that it's about between 10 to 30 percent of current FOB value and that could be the impact on the prices.

Thank you, sir. Thank you so much.

We will take the next follow-up question from the line of Chitain Parmar from Modern Capital. Please go ahead.

Yeah, good afternoon once again. So, my question is, what is exports as a percentage of our revenue, and subsequent to this, how much of our raw material is imported? The reason I'm asking this question is basically that there has been a deviation of the rupee against the yuan by 20% and for the dollar by 10% in the last one year. So I want to gauge whether we are a beneficiary or we are negatively impacted.

I believe that whether we are beneficiary or otherwise because both the raw materials and the finished good prices correct to the exchange rates. It is only sometimes the timing difference. So both are because whether it is nylon tie-cut fabric or it is nylon yarn, the pricing has the imported imports of either the finished goods or raw materials has an impact on the finished good pricing. So, it is difficult to say whether it is positive or not, but weakening of rupee against dollar and slight strengthening of yuan against dollar. Actually, it should be favorable because it makes the Chinese imports into India particularly the finished goods more costlier. We also import the majority of our raw materials from China. I mean, also from other countries, but China is one of the major suppliers of the raw materials. We also get So, that anyway gets captured in the cost of both raw materials and the finished goods.

Yeah, so if you can answer, you know, how much is the percentage of exports out of the total revenue?

So that's about 4 to 5 percent is our exports, but we are focusing on increasing our exports, particularly of the value-added filament yarn.

Okay, okay. And one thing I want to talk about from the risk perspective, one of the risks I see is basically radialization. How does that affect us? You know, because that would affect, you know, basically our NTCF demand or, you know, how much can we throw some color on it, basically?

It has moved to a close, I mean, as per reports from ATMA, is about 60 percent, is now, has moved to 60 percent of the total demand in truck and bus segment. Radialization impacts only the truck and bus segment. It does not impact the tractor or the two-wheeler segment because there it is still, nylon is the reinforcement. And it has not been increasing at the rate. It used to be about maybe four years back. It was about four to five years back. It was 55. It moved to sharply to 58 about two to three years back. And now it has the big increase. The radialization percentage increases are now not that sharp. Second, so we are not seeing a significant rise in the percentage of radialization of truck investment. Second, since the tractor and the tubular segments are growing, what we have seen in the previous year when the volumes were also high and there would be, so that is expected to cover up if any radialization reduces the demand for the nylon as a reinforcement. So, we expect, what Realization has done is that, Overall growth of nylon as a reinforcement in the tire segment is not growing significantly. We expect only marginal growth of maximum 1 to 2 percent. But we also do not expect a significant fall now, since it is now reaching a level where normally it is more stabilized.

Perfect. Thank you so much. That's all.

Thank you. We will take the next follow-up question from the line of Vipal Kumar Shah from Sumagal Investments. Please go ahead.

Just one clarification, sir. You said 15 to 20% of our volume is commodity, but when I see your slide number 6, your yarn segment and reinforcement segment revenue are almost matching. So, in yarn segment also, we have two types of... One is valued and one is commodity.

Thank you.

The Yarn segment... This sales is 8,000, 8,280 million, and reinforcement is 8,000. So what I am missing here, sir. So, in the yarn segment also we have two types of products, one is commodity and one is speciality. Okay, sir. Thanks for the clarification.

Thank you very much. Ladies and gentlemen, we'll take that at the last question. I now hand the conference back to the management for the closing comments. Thank you and over to you, sir.

Thank you, everyone, for joining our earning call. I hope we were able to give the answer to your query, and I hope those were to your satisfaction. If you have any further questions or would like to know more about the company, please reach out to our Investor Relations Manager at Valoram Advisors. Thank you.

Thank you, members of the management. On behalf of Valoram Advisors, we conclude this conference. Thank you for joining us and you may not disconnect your lines. Thank you.