Sangam (India) Limited Earnings Call Transcript, Nov 5, 2026
Sangam (India) Limited (XBOM:SANGAMIND)
Ladies and gentlemen, good day and welcome to the Sangam India Limited Q2 FY27 Earnings Conference Call hosted by Go India Advisors LLP. 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 touchtone phone. Please note that this call is being recorded. I now hand the conference over to Ms. Garima Singla from Go India Advisors LLP. Thank you, and over to you, ma'am.
Garima Singla:
Thank you. Good afternoon, one and all. It's my pleasure to welcome you on behalf of Sangam India Limited. Thank you for joining us today for Q2 and H1 FY27 earnings conference call. This call is being hosted by Go India Advisors. Please note that today's discussion may include certain forward-looking statements. Therefore, they must be viewed in conjunction with the risk that the company faces. Today on the call, we are joined by Mr. Anurag Soni, Managing Director. I now invite Mr. Soni to present the company's business outlook and performance, after which we will open the floor for Q&A. Thank you, and over to you, sir.
Anurag Soni:
Thank you, Garima. Good afternoon, everyone, and thank you for joining us. Diwali is just a few days away, so let me begin by wishing you and your families a very happy and prosperous Diwali. For those who are new to Sangam, I would like to take a moment to introduce ourselves. We are an integrated textile company. On the synthetic side, we make recycled polyester fiber from plastic waste, PV-dyed yarn, and suiting fabrics. On the cotton side, we make cotton yarns and denim fabrics along with openend yarns. We also have a small seamless garment business which is about 2% of our revenue. All of this happens across 8 locations in Rajasthan with over 12,000 people. Capacity utilization remains high across all our divisions today. Quarter 2 has been the best quarter in Sangam's history. Revenue crossed INR1,000 crores in a quarter for the first time at INR1,045 crores, up 33% over last year. EBITDA was INR127 crores and PAT INR53 crores, both the highest we have ever reported. For the half year, revenue stood at INR1,906 crores and PAT at INR94 crores, which is already more than what we earned in the whole of last year. When we spoke in April, I talked about one simple principle: better than before. For 5 quarters in a row now, our EBITDA and PAT have been better than the quarter before. This is now showing in our balance sheet as well. Return on capital employed has gone up from 7% 2 years ago to about 13% today, and return on equity from about 4% to nearly 14%. Net debt to EBITDA has come down from 4.5x to 3.25x. In October, India Ratings upgraded our long-term rating to IND A with a stable outlook. Our debtor days have gone up in the current quarter from 67 days in March to 77 days in September, and there are mainly 2 reasons for it. First, we are growing our business, and with
Page 2 of 12
Sangam India Limited November 05, 2026 the focus also on government tenders, which was close to INR200 crores in the first half, it is a business we intend to build, but these payments come on a longer cycle and a good part of it is yet to be collected. Second, the export shipments are taking longer to reach customers these days, which is why we have been more measured on exports this year. We aspire to bring debtor days back to March levels in the second half of the year. Coming to the future, our plants are running close to full capacity, so the next leg of growth needs fresh investment, and we have started on that. Our first focus is cost. Energy is our biggest cost, and we are bringing it down with our own renewable power. Last year, captive power met close to 10% of our needs. Today it is close to about 35%, and by the end of this financial year it will be close to about 50%, before stabilizing at about 70% in Q1 of next year. Our next focus is capacity, including modernizing and expanding our spinning and making more of our own raw materials. The work is on track, and the larger benefits will start coming in from the next financial year. In April, I said we aspire to double our PAT this year. At the halfway mark, I'm happy to say we are well on that path. I want to finish by thanking our 12,000+ colleagues, our customers, our bankers, and all our shareholders for their trust in Sangam. There's a lot more to do, and we're looking forward to it. With that, I'm happy to take your questions. Thank you. Moderator:
Thank you, sir. We will now begin the question-and-answer session. The first question is from the line of Mr. Raj Shah from Fident Asset Management. Please go ahead, sir.
Raj Shah:
Yes, hi, thank you for the opportunity. So I just wanted to understand the breakup of the expansion that we are doing in terms of what capacity are we adding in yarn and fabric. And out of the INR1,500 crores, I think we have given the disclosure for INR900 crores. So what is the remaining amount to be spent on?
Anurag Soni:
Right, so I think with regards to the details of the investments, we already mentioned that in our presentation. So with INR1,500 crores that was mentioned in the last quarter, that was a capex plan that we have undertaken for the next 2 years to 2.5 years, 3 years. So what is firmed up has been disclosed in the presentation. The other work is still in progress, and probably as time goes, probably in the next few quarters, we will share more details once they are more firmed up. So currently we have shared the timelines where we intend to complete our projects that are undertaken. Their completion dates and their expected benefits and when they can accrue from. So I think I will leave it at that. The broad guidance we've already shared in the last quarter that where we intend to spend the money. So currently what is firmed up is shared and we'll share more in the coming quarters on the capex plan.
Raj Shah:
Understood. But just in terms of the capacity that we are adding in terms of yarn, in terms of metric tons, so what will be the additional capacity?
Page 3 of 12
Sangam India Limited November 05, 2026 Anurag Soni:
So broadly, I think we will, with the capex that is underway, I think we will add close to about 60% to 70% on the capacity on the cotton yarn side in terms of quantity.
Raj Shah:
Understood. And secondly, so garmenting utilization was 37% this quarter. So in H2, do you see this picking up with exports picking up? What can be the full year utilization for garmenting?
Anurag Soni:
I feel that I think for the full year it should be closer to about -- between 50% to 60%. We will definitely see a pickup in H2. As you see, like in Q2, my utilization is low compared to previous quarter. It is still compared to same last year, it is on the higher side. So we are picking up there. In H2, I think we should see a pickup there.
Raj Shah:
And what is the difference in margins between your yarn, fabric, and garmenting? EBITDA margin?
Anurag Soni:
See, we typically report our numbers together, but I think, if you see our subsidiary numbers, which are 100% garmenting numbers that are reported separately, but garmenting margins should be a little higher, but broadly, I think we are more or less aligned on margins across our divisions.
Raj Shah:
Understood. Okay, thanks so much.
Anurag Soni:
Thank you.
Moderator:
Thank you. The next question is from the line of Mr. Saransh Gupta from Svan Investment. Please go ahead, sir.
Saransh Gupta:
Yes, hello. I hope I'm audible, right?
Anurag Soni:
Yes, you are.
Saransh Gupta:
Thank you. Hi, following up on the earlier participant's question. I wanted to understand, like you said that in H2 our utilization will increase. So we have given a guideline of doubling our PAT to INR166 crores in FY27, and out of that we have already achieved INR94 crores for the first half. So are we a bit conservative on that side, or will we reiterate our guidance?
Anurag Soni:
Sir, I will reiterate there. I think we did not give a guidance in the last call. I did say that we aspire to do that, and I think we are on track there. So, being conservative may be better, but let us see where the numbers land up. We will still try and continue being better for the next 2 quarters from here on. So, I think today I'm relatively confident to say that we are going to beat, we are going to at least double our PAT from last year in this year.
Saransh Gupta:
Fair enough. And sir, I guess we are spending somewhere around INR200 crores for the renewable power, so out of that, what was the benefit that we achieved in first half for Q2?
Anurag Soni:
So see, first half is already in the numbers, the amount that is pending to be realized is mentioned in our presentation. I think there are still about INR50 crores to INR55 crores yet to be realized on what is to be commissioned hereon. However, I will add here that renewable is a seasonal business. So whatever numbers we are sharing are for the full year, they may or may not always
Page 4 of 12
Sangam India Limited November 05, 2026 realign with quarterly numbers because seasonality makes a difference in the generation of power. So for the full year, the numbers yet to be accrued are about close to INR50 crores, INR55 crores. That is still not commissioned or just commissioned in the current quarter. So those capacities will further yield about INR50 crores to INR55 crores of EBITDA in the future on a full year basis. Saransh Gupta:
So my question was, was there any power or renewable power benefit in the last gone quarter?
Anurag Soni:
That is already in our energy costs that we have. So if, to put it this way, see, last year I mentioned in my opening remarks, last year we were about 10%, today we are 35%. So there is some portion already there. So, that already sits on the existing gains.
Saransh Gupta:
So will we be able to quantify that?
Anurag Soni:
See, we are currently quantifying, maybe I think separately, post the call you can maybe by an email or something we can share it. But no, I think today, like as of now, I don't have the exact numbers. I will not give you a rough number here.
Saransh Gupta:
Understood, sir. And so just last question, sir. I believe that we as India as a whole, for the spindles at least, we were at 50 million spindles to 53 million spindles, out of which 8 million spindles to 10 million spindles were closed because of the disruption that came in after the tariff. So post that, with the FTAs -- several FTAs coming in, do you see as an industry that the spindles capacity has to go up or should go up? I know that you have also already announced your expansion. So as an industry, how do you see it?
Anurag Soni:
So see, we hope that for the industry, there are positive times ahead. However, I think we'll stick to talking about Sangam, and we feel that the capacity that we are adding, there are strategic reasons for that, and mainly we are trying to use that raw material mainly for our in-house denim fabrics. So at least like whatever new capacity that we are adding, at least I think 40%, 50% of that new capacity will be used captive. So our strategy is actually to work on decreasing our raw material costs. So that is the primary focus. And anything surplus that we are going to generate, I think there is an easy market. And already we are short on supplying our customers on the yarn side. So I think we are very confident that the capacity we are adding will generate good results.
Saransh Gupta:
Understood. And so just one last question if I can squeeze in. So, what was our current yarn spreads that we achieved in this quarter?
Anurag Soni:
Again, sir, I don't have that number handy on me currently, so we'll have to maybe -- I would say that the gross margins are going up, so yarn spreads are improving. And, but yarn is still what, about 48% of our revenue? So revenue is also coming from the fabric side, denim and PV fabrics. Those margins are also coming in. So yarn spreads we are not tracking individually.
Page 5 of 12
Sangam India Limited November 05, 2026 Saransh Gupta:
Understood, sir. And thank you so much for answering the questions. All the best and happy Diwali to you and the team.
Anurag Soni:
Thank you very much.
Moderator:
Thank you. The next question is from the line of Mr. Kamal Jeswani from YouFirst Capital. Please go ahead.
Kamal Jeswani:
Yes. Hi. Congratulations on a very good set of numbers and also happy Diwali to everybody. My -- I've got a couple of questions. First is regarding the debt levels. I was saying that we were maintaining debt levels, net debt to our equity was around 1 going over the last few quarters. This time it's gone up slightly more to 1.15. And also you've announced a capex of INR1,500 crores. So how much more debt will we be taking for this? And what will be our sustainable net debt-to-equity going forward? That's the first question.
Anurag Soni:
Thank you very much. Net debt to equity is slightly elevated at 1.15 currently. See, we are in a capex phase and textile is a capital-intensive industry. And also, if you see the cost of debt is about at roughly 6% to 6.5% levels. So the new capex is also going to be funded largely via debt. So these numbers may look elevated as net debt to equity for a brief period. However, I think in a longer run, we will come back to our levels of around 1-1.1x. And to slightly mitigate that, we as promoters have also in our last quarter, we decided that promoter infusion of about INR100 crores as equity is coming in the company. Out of that, INR25 crores have already come in. The 25% of the warrants is already paid in the current quarter. So we are trying to mitigate the net debt-to-equity to an extent. However, in the shorter period, it will remain elevated slightly, but it will come back to normal levels once the benefits of the capex and maybe at the end of the cycle, it will get back to normal levels.
Kamal Jeswani:
Okay. Second question was regarding the garment capacity. Utilization is quite low and also declining. So what could be the reason and any plans of increasing utilization in that segment?
Anurag Soni:
So I mentioned, and I think a couple of questions earlier I was asked the same question. We are working on it. Probably like H2, you will see better numbers. However, year-on-year comparison, last year same quarter we were at 22%, we are at 37% today. So there is an improvement there compared to last year. Also, there are some garmenting orders which are on seasonal basis, and so these capacities tend to go up and down depending on the future orders. So I think in H2 it should be better. I would still say that garmenting is still new to Sangam and we are -- it is just 2% of our business. So we are also learning as we speak.
Kamal Jeswani: Moderator:
Okay. Got it. Thank you. If I have more questions, I'll come back in the queue. Thank you. Thank you. The next question is from the line of Ms. Deepali Kumari from Arihant Capital. Please go ahead.
Page 6 of 12
Sangam India Limited November 05, 2026 Deepali Kumari:
Yes. Thank you so much for the opportunity.
Moderator:
Deepali ma’am, I’m sorry to interrupt. Can you come again with your question? Your voice is breaking.
Deepali Kumari:
Am I audible now?
Moderator:
Yes, ma'am. Please go ahead.
Deepali Kumari:
Okay. On the raw material side, I mean, we…
Moderator:
I’m sorry to interrupt again. Ma’am, there is a network issue, I guess, at your end. Your voice is cutting off.
Deepali Kumari:
Okay.
Moderator:
Yes. Now can you come again with your question?
Deepali Kumari:
Am I audible now?
Moderator:
No. It’s not better, ma’am. It’s the same.
Deepali Kumari:
Am I audible now?
Moderator:
Please go ahead. Let’s see.
Deepali Kumari:
Okay. On the raw material side, like, how do you buy cotton mainly at season start? So CCI auction or by importing? Like, how many months of cotton inventory do you hold now, if you can give me some idea?
Anurag Soni:
So it is the start of the new cotton cycle season in India. I think that you were trying to ask what the mix of cotton is from CCI or other sources or imports. So see, this is a call that we take on case-to-case basis. There is no particular mix that we follow. Whatever is more viable is something that we buy. On the cotton stocking side, typically cotton stocks peak at around March levels, currently, and because the cycle is still new, so the stock levels are at much lower levels today. So, March is when we probably peak the cotton stock, and then gradually it comes down. And probably September, October is the level where you're at the lowest, and then you start building again from January.
Deepali Kumari:
Okay. See -- what it is? Like, how quickly you can pass the raw material price to customer in yarn compared?
Anurag Soni:
Well, I think the pass-through is much easier in yarn than in denim fabric. I think as you move up in the value chain, the pass-through gets a little more difficult. So yarn prices are easier to pass through than fabric.
Deepali Kumari:
Okay. Also, do you hedge cotton currency?
Page 7 of 12
Sangam India Limited November 05, 2026 Anurag Soni:
No, not really. We don't hedge on cotton prices.
Deepali Kumari:
Okay. On the competition side, like, how do you compare with Bangladesh and Vietnam producers on cost for garment and lead time?
Anurag Soni:
Well, ma'am, I think for us Bangladesh is a big market, so we are not really competing with them. Again, Bangladesh is mainly into garmenting, both Bangladesh and Vietnam. So we, I think, as yarn or denim suppliers, I think we are very easily able to compete there. And so we - it is a market for us, not competition.
Deepali Kumari:
Okay. So, what is the EBITDA per kg for yarn and EBITDA per meter of denim and PV fabric?
Anurag Soni:
I don't have that information handy now, and we typically don't report numbers in different segments. Our numbers are reported as company as a whole.
Deepali Kumari:
Okay. And if you can give me also the current capacity utilization on the denim side and realization per meter also?
Anurag Soni:
I think we have that in the presentation ready that we've uploaded. Denim capacity utilization in the last quarter was more than 96% to 97%. So, realizations per meter, I'm not sure, but it should be around INR170 to INR175 a meter.
Deepali Kumari:
Okay. So, I have one last question on the order visibility and book for like H2 FY27 or upcoming FY28? Like, if you can give me some idea on that.
Anurag Soni:
Well, typically, our order visibility across our divisions is roughly around anywhere between 45 days to 60 days or something that we have visibility upon. That number remains somewhere there, 5 days here and there, but that is how we operate throughout the year.
Deepali Kumari:
Okay, sir. Thank you so much.
Anurag Soni:
Thank you.
Moderator:
Participants, if you wish to ask a question, you may press star and one on your touchtone phone. I repeat, if you wish to ask questions, you may press star and one on your touchtone phone. We will wait for a moment while the question queue assembles. The next question is from the line of Mr. Vikram Tugar, an individual investor. Please go ahead.
Vikram Tugar:
Actually, you had said about the INR1,500 crores planned capex, so as and when it comes, how much incremental annual EBITDA would be generated? Let's say around 50%, 70%, and 90% over 3 years. And what will be the net debt at each stage? Because you are doing debt funding?
Anurag Soni:
Sir, see, I think about 60% of the details of the total capex plan has already been shared in the current investor presentation. Probably I think over the next 2 quarters at best, I think we should be able to firm up our balance plan as well. So we are at advanced stages there. As and when we are able to firm that up, we'll probably have a better idea.
Page 8 of 12
Sangam India Limited November 05, 2026 On the already committed ones, the numbers I've already revealed. So I think I will leave it at that. Probably give me some more time, we'll firm up and I'll be able to give you a better number then. Vikram Tugar:
I understand. Thank you so much. And that's a net debt at each stage, because that is plus you are going in for government orders also. So is it that, government orders, you will be able to get your realization in the normal cycle of 45 days to 60 days? Or 70 days-75 days?
Anurag Soni:
Well, see, I'll answer the second part of the question first. So we are focusing on institutional tender sales, so there typically the cycles are longer, and that is also showing on my balance sheet today. So the debtors, we are not comfortable with the days they are at. Actually, I said that on the last call as well in March, so we were already not comfortable in March and we have gone up from there. So, there is something I think we will probably work upon in H2 and find better ways of financing these sales, maybe find ways of factoring or discounting these bills. I don't have very much clear visibility currently. This is still a work in progress. So we'll see because we'll have to balance our working capital and sales. So we'll probably only take up as much as we can do there. As far as the first part of the question is concerned, net debt with regards to capex. So typically, capex gets funded around 70% to 75% of the capex amount gets funded by debt. So that is something that is going to remain. My debt repayment schedule for the next 5 years, again, I think we have shared that on the presentation. So net debt will obviously, with the heavy capex coming in, will increase. So today I think our long-term debt stands at about, closer to INR1,000 crores. I see that these numbers at the net level will probably go up to INR1,500 crores at the end of the cycle and then gradually start coming down with repayments every year. However, I think the number that we -- which we are probably looking more at instead of looking just at net debt, probably the number of net debt to EBITDA is a number that we would probably like to focus more upon. So today we've been able to bring that down from 4.5x, a couple of years ago to 3.25x today. So that is something, even with increasing debt levels, we've been able to do that. So we aspire again to remain at these levels. However, probably for a quarter or 2, this number can go up, but probably around 3x to 3.5x is something that we will be comfortable with in a longer run. So that is a number that we would focus more upon because in a growing organization and when you are trying to build capacities, net debts will typically be elevated. So as far as net debt to EBITDA is in control, I don't see that this is a number that we worry about too much.
Vikram Tugar:
I appreciate that answer. I understand, and I wish you all the best for your growth. My just last one question is that, I'm a bit worried, whenever somebody goes in for institutional sales. So in the salespeople -- how is like you're doing tendering L1 types, or your margins are protected, or you have better margins for the delay in the payment cycles?
Page 9 of 12
Sangam India Limited November 05, 2026 Anurag Soni:
So see, there are two things there with government tenders. Obviously, your debtors tend to stay elevated. Receivables take a longer time than the normal cycle. I would still say, see, even when we are trying to grow that business, still in H1, if you see, it's only 10% of my revenue. So we are wary about the risk that longer cycles carry. So we don't want to push it to a level where the percentage of sales goes up substantially. There it is still below 10% of my sales. So we are managing the risks there. However, on the margin side, obviously you have to be L1 and also technically you have to be qualified with the credentials that Sangam has. So we qualify for most of the orders that most government organizations are looking at. So that way, that gives us an edge over a lot of unorganized market competition. So that way your margins remain protected. However, there is a larger investment that is required with it because these are big orders that you execute at once. So you need that working capital support to execute these kinds of orders. So it's a risk and reward that you have to manage. So currently, we are focusing on this business. However, still it is below 10% of our sales. So it is not something that we depend upon.
Vikram Tugar:
Right, sir. So I -- is this the Army and Navy you're doing, or it is the normal government people? Because Army, Navy also has a lot of allocation of budgets, and the cash turnaround is much better there, and they need technical expertise, so they give you margins also?
Anurag Soni:
Right? So, sir, see, these are various organizations. I think there are various government organizations that we try and work with. And we see that obviously the demand side potential is unlimited. It is how much we can do. So again, I will say we'll have to always match the risk and reward and see where this mix remains. It is an evolving business and something that we want to focus upon. But let's see where this takes us.
Vikram Tugar:
Okay. Right. Thank you so much. Thank you for taking the questions.
Anurag Soni:
Thank you.
Moderator:
Thank you. The next question is from the line of Mr. Rohit from Progressive Shares PMS. Please go ahead, sir.
Rohit:
Hi, Anurag. A couple of questions. The first one, for this cotton yarn project which involves investment of INR600 crores to INR620 crores, we're expecting that it would generate around INR130 crores of EBITDA. So can you share that what revenue run rate or asset turnover you're targeting at peak utilization?
Anurag Soni:
So I can say asset turnover will be difficult to answer because there is a lot of capital synergies and raw materials that we have. So I can say that's what we've mentioned there, that the economic benefits in terms of EBITDA is something that we look at. So that is something that we feel that we are confident that we can generate.
Page 10 of 12
Sangam India Limited November 05, 2026 Asset turnover may not be the right metric because if you're using, let's say, that I mentioned earlier that a lot of the part of the additional capacity we may use in-house for our denim requirements. So in that case, asset turnover will be difficult to determine. Secondly also, that there is a part of that of that capex where we are actually modernizing our machinery, which yields, let's say, machinery that was 15 years to 20 years old and with the machinery that is coming today. So these machines are much more advanced technology and much, compared to that period in time. So again, they will generate larger benefits to the EBITDA level, but asset turnover may not be the right metric to judge that. Rohit:
Okay. But in this EBITDA, are you estimating some sort of state capital subsidy or some interest subvention or something like that?
Anurag Soni:
No, sir. These EBITDA numbers are exclusive of any kind of subsidies. Any subsidies that come in from the state government are over and above these benefits.
Rohit:
Okay. Second question, in terms of the ROCE, we are currently hovering around 12%, 13%. What sort of target do you pen in for maybe FY29-30 with all these projects running properly, assuming that it is a normal world then? And what sort of hurdle rate do you intend to apply to these new projects?
Anurag Soni:
So, sir, assuming that it's a normal world is a very big assumption to make, and FY29-‘30 is very far away. I will only say that, see, we are aspiring to get better. You will see that my ROCE is - though you said it's hovering around 12% to 12.5%, that is true. We probably can be much better than this, but we've come from 7% 2 years ago. So, I think there is a substantial jump there. And also the return on equity is higher than the ROCE, and that is partly because obviously our capex are mainly debt-funded. So we had about 13.5% to 14% on the return on equity side. I think anywhere once we cross 15%, and maybe if we can get closer to 16% to 18%, I think we should be happy with that number internally. But I have no -- very frankly, to assume that everything will be normal and how things will pan out, I don't want to give anything that what it looks like 2 years from now. Let's take it quarterby-quarter. We are again trying to get better. So as far as these numbers are in double digits and they're closer to 15%, I think we should see that we are happy with the progress we are making.
Rohit:
Anurag, last question. With this capex of INR1,500 crores, I'm aware that you see a lot of opportunities in the domestic market itself. But with this capex in progress, are you looking at some sort of import substitution opportunities also over here?
Anurag Soni:
So, sir, see, on the import substitution side, there's not a lot of things that we import because we have to import. If we import something, it is by choice and it is with a cost benefit. So in terms of most of our raw materials, they're on the domestic side. So cotton, India is a self-sufficient country there. We import cotton if we have to or we feel -- if we feel that the margins are better on doing that.
Page 11 of 12
Sangam India Limited November 05, 2026 Or there are some orders that require that to be done. And other raw materials, polyester, about 40% of our polyester comes from in-house capacities. And there is -- it is recycled waste that we are using there as raw material. The balance of our polyester requirements also comes from the domestic market. Viscose is again 100% domestic. So we are not highly dependent on import on the raw material side. There may be some stores and consumable items that we may be dependent on importing, but then that is something that we cannot control today. Rohit:
Okay, Anurag. Thank you for answering my questions. All the very best for the future and have a great festive season ahead. Thank you. Thanks a lot.
Anurag Soni:
Thank you very much.
Moderator:
The next question is from the line of Mr. Kamal Jeswani from YouFirst Capital. Please go ahead.
Kamal Jeswani:
Thank you for the follow-up. I just saw that the EBITDA margins have been improving, but in spite of that, the cash flow is negative. What is the reason? One is I've seen there is a lot of receivables, and you have mentioned that because the export shipments getting delayed. How much of this receivable will be through for the export and how much will be domestic? And what are we doing for the cash flow, operating cash flow, to be positive going forward?
Anurag Soni:
So, sir, I think I've kind of addressed this on earlier questions that, see, receivables are high due to two reasons. One is a particular market or a particular segment we want to focus on the domestic side, and export shipments are elongated. So it is a pain area. We are at 77 days on the receivable side today, and that is the primary driver of getting the cash flow to the negative side. So again, this is something that we are aware about, and work is underway on this front. And probably, 1 quarter to 2 quarters, we'll see these numbers improving again. We'll -- so 100% by March, we want to get it back to the last year number and then probably start a journey of further improving from there.
Kamal Jeswani:
So we can expect the cash flows to be positive by March?
Anurag Soni:
Yes. Operating cash flow will be positive for sure. Yes.
Kamal Jeswani:
Yes. Okay. Got it. Thank you.
Moderator:
Thank you. Ladies and gentlemen, due to time constraints, I now hand the conference over to the management for closing comments. Over to you, sir.
Anurag Soni:
Thank you all for joining us today. I hope I've been able to answer your questions. If anything is left, please write to our Company Secretary, Mr. Arjun Agal, or the Go India Advisors team, and we will get back to you on that. Once again, a very happy Diwali to you and your families. Thank you.
Moderator:
Thank you, sir. On behalf of Go India Advisors LLP, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.
Page 12 of 12