Stylam Industries Limited (STYLAMIND) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the StyleM Industries Limited Q1F527 Earnings Conference Call, hosted by Systematics Shares and Stocks. 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 comes. 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 has been recorded. I now hand the conference over to Mr. Anshika Pathak. Thank you, and over to you, Ma.

Thank you. On behalf of Systematics Institutional Equities, we welcome you all to the Q1 FY27 Conference Call of Trialum Industries Limited. From the management side, we have Mr. Jagdish Gupta, Managing Director, Mr. Manit Gupta, Old Time Director, Mr. Kishan Nagpar, Chief Financial Officer. I'll now hand over the call to the management for their opening remarks, followed by the Q&A session. Over to you, sir.

Yes, I think we already submitted, we already mentioned, it is available on the SILM website, and it is available on the SILM website also. So, now you can have the questions about the communication, you can start with the question and answer.

Thank you very much.

Yes, sir, we can hear you.

Yes, so it is already on the website, only it has mentioned that it is limited to the investor's presentation is also on MSE and BSE and on the style of website house. I am sure everybody has gone through it already.

So you can start with questioning.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We take the first question from the line of Dhruv Pajaj from GrowthSphere Ventures. Please proceed.

Yeah, so thank you so much for the opportunity. Let's give you firstly congratulations on a great slate of results. We always thought that 20% EBITDA margin was a ceiling for you guys, but you guys even crossed that number in this particular quarter. So my first question was, sir, what caused this margin spike beyond this 21% kind of range, despite lower exports Q on Q basis? Like, what's the sustainable margins? Once exports start to ramp up further, post the new capex coming life. Because we are unable to understand the exact margin trajectory of this type of business. So it's looking right on that, friend.

I think the margins would remain the same, since that is why even when the new K-Tex will start end of August, so we can expect the similar kind of margins, which is 19-20% plus.

Did we get the inventory gain type of benefit in this particular quarter? Because we shot up 20% kind of gains that we maintained earlier.

I think, sir, aap ki thodhi awaaz na thodhi echo hodhi hai. Can you just check one? Just a moment, sir.

Is it better now? Yeah, I agree. Yes, I mean, I was trying to understand like did we get receive some sort of inventory gain benefit in this particular quarter given the volatility in the wooden prices? No, it's an inventory gain.

Nothing. It is our efficiency and it is our more risiation and if you go for sale, sale is free. When sales and fees are expensive, it automatically will be due.

Perfect, perfect. And sir, in one of the previous calls, you did mention that we are operating in near full utilization, and our customers are waiting for a new KPEX to come live. And since you have already guided that our new KPEX will... Yeah. Sir, I had a couple of questions on that, friend. Firstly, how will the ramp up look like? Like, do we have some sort of POs beforehand, which we can scale up gradually once the KPEX comes live? Or will it be on a month-on-one basis, the customer will assess the demand and then give us orders?

And second, what's the, what we are looking at for the first year, maybe 70 to 50% plus capacity utilization for the next year.

Sorry, if I heard it correctly, you said 50% plus capacity utilization, right?

I mean, we want to be conservative rather than...

Fair, fair.

That's why we look at 50,000 plus under the package.

Fair, sir. And, sir, my second question was that we mentioned in one of the previous calls that we will announce a major capex once ICA's stake control was over. And in the previous quarter, we mentioned that we will mention about the same in this current quarter. Sir, any updates on that when considering brokerages are coming out with reports that...

Not yet. To be honest, we are actually valid. The other options side by side, we had to, but I think we might delay it for until next quarter, because our first focus is just to start this plant, which is more important rather than running and getting more chaos done. So that is what it is. Once plant is operated by end August, early September, definitely we will announce about our nutrients.

Very nice. Sir, but just to understand, directionally speaking, are we focusing more on this laminate segment for the newer KPS, or we will expand in some other woodpan and agency?

Laminate, there will be a saturation for every company. It will not actually laminate. It will be product going along laminate.

Okay. Because the remaining to the flywood was the MDF and particles.

Which would help us actually strengthen the domestic market further.

Okay, fair enough. So, then your KPS will be focused more towards domestic market versus exports, right? Correct. Perfect, sir. Okay, sir. Thank you so much. All the best.

Thank you. We take the next question from the line of Keshav Lahoti from HDFC Securities. Please proceed.

So, congratulations on Henry's set of margin. So, firstly, what sort of top-line growth you are targeting? Because now the commissioning of the plant is also delayed by a month to August. So, August is a trial production or commercial production?

Commercial production will be first of September.

Thank you very much.

The voice is not very audible.

The commercial production will be attended.

Understood. Got it. What sort of price hike you have taken in this quarter? And secondly, even in this quarter also, you know, sort of domestic revival which we are looking in spite of price hikes, the growth still remains a low single digit. How should we see the now, you know, domestic getting revised?

I think we have discussed this in the last call also once that it actually takes time to revamp the domestic market. Something was not wrong, it was not correct. No one can expect us to just do wonders in one quarter. That is why we in the first call also we know that it might take two to three quarters to actually revamp the entire domestic market. That is why it is not about the price type, the entire restructuring is happening and we see we've seen data, the distributors are joining us, where else they are being taken up for the collective market. And you will definitely see the results from quarter three. I won't even say quarter two, but you will see the results from quarter three.

Okay. Got it. Thank you.

Thank you. We take the next question from the line of Resha Mehta from GreenEdge Wealth. Please proceed.

Yeah, thank you. Congratulations, sir, for a very good set of numbers. So, first question is, you know, this grant commissioning has been getting delayed, I think, almost since November of 2025. So, are there any specific reasons, and, you know, we have seen these delays in timelines multiple times. So, is there a further risk that we are seeing, you know, from this August or September commercial production timeline to, you know, it getting pushed forward? And if you could talk about, like, what are the reasons for the same? And also in the same light, See, the reason for asking this question is, I think we were expecting some 300 crores odd revenues from this new plant, you know, in the current financial year. So, if you could also, you know, comment on that.

I think you are right. I think I will answer the second question first. Whatever you are expecting, your 300 crore revenue from the third plant will definitely be there. And then the aim will be to multiply this, hopefully, I think. And there is no risk further ahead. I think that is why our target is maximum by 1st September, I think it would be hopefully by 15th or 20th in December only. Sorry, first of all, only August only, but maximum we are going to take up 1st September.

Right, right, right.

And, you know, sir, I think you did answer to the previous participation in terms of the ramp-up. So, I think because your voice is civil, I missed that. Was it 30% ramp-up in the first month or 50?

Yes, no, no, 30% ramp-up for the entire new plant. And whatever figure you are saying, I think we are pretty hopeful that we will be able to see that from the third round.

Okay, so 30% ramp up by the end of this financial year, right, for the new plant? So exit will be 30%. Okay, get it.

And by the value of what you were saying, around 250 to 300 years, it would be really a cheaper from the third round.

Okay, so 300 crores, kind of 250 to 300 crores revenue. Sorry?

Yeah, correct, sorry, 250 to 300 crores.

Got it, got it. And, you know, domestic business, we are kind of trying to, you know, turn that around and doing some restructuring. So, if you could elaborate on, you know, like what specific steps you all are taking in what areas, that would be very helpful. And I understand why the delivery or the turnaround of the domestic business may take time. I completely appreciate that.

And the steps are very simple. I think we have it. Restructuring the team, getting new people on board, getting that confidence in the market which was not there for, especially for the domestic market. If in export we are doing access number, why not domestic, whereas the entire industry is the other way around there. Domestic is a poor business for them and export is a smaller business for them, whereas only for style and it was the other way around. We are not doing anything unique or something new. In the same way, opening a house is available as you are required, getting that trust back with the distributors, getting extra partners, and getting the banking.

Got it. And so, on the inflation side, right, because now, again, we've seen that, you know, this resurgence in West Asia war, with that, what is happening on the input cost side, and to that effect, what are the kind of price hikes that we, you know, whatever price hikes we've taken in the past, in the last couple of months, are they sustaining? Just some commentary there would be helpful.

As of now, yes, the raw material still remains the same condition. I think that whatever price we have taken, it will remain intact. If there is a reduction in raw material, if the work stops, definitely we have to reverse a little bit. We don't think in that particular way right now. But if there is, we will update you on that.

Understood. And, sir, if I can squeeze in, like, maybe one or two more.

Sorry, can you repeat?

If I can squeeze in one or two more questions.

Go ahead, Akeem. That is absolutely moderator. I think we don't have a problem.

Sure. Great. Thank you. And, you know, on the export side, so how are we seeing the demand shaping up? And as far as the U.S. tariffs, they were supposed to be 15% effective July. So is that still 15% or we are still at 10%?

No, as of now it is 10%, but I think today morning it came on news that US is implementing, because the 10% had to go 0% from 24% today, as it was today. So I think now that they have re-implemented that 10% again, so I think it would be 10% only right now going forward, but today morning news is, we have to reset it.

Right, right. And for our existing plant, it can still deliver this 15% kind of growth that we delivered in the first quarter, like the existing plant capacity or not really?

Yeah, yeah, I think the existing plant capacity, whatever we did, there is still a slide. So, when we talk about lambda, we still have a slight gap, 5-10% more, if we actually work on the efficiency more further. Actually, it is completely empty right now, but we are, as what we were talking about, domestic, we are renaming the majority, which is actually a part of it, and then I guess.

All right. Thank you so much, and best wishes.

Thank you. Let me take the next question from the line of Surendra Singh from Myquity Sherpa. Please proceed.

Yeah, thanks a lot. Am I audible? Yes. Yeah, thank you. So, sir, this new partner, ISO Exchange Filing, that they have taken 40% shareholding, and they are in place now. So, on ground level, how things are changing now? Like, we talked about this tech transfer for Japanese high-pressure laminates, and certain business initiatives such as sourcing acrylic solid surfaces, or any other new development which is happening on the ground.

So, nothing as of now, of course, they have been referring to an agency last month. There will be no involvement from their side, and they are tend to say they are a strategy partner. And as of now, there is no discussion about exposure to them or anything of that sort.

Okay, yeah. So, that helps. So, are you expecting anything in like near term, three months, six months, where things will start evolving further?

Maybe, yes, but again, We've been involved in terms of technology transfer to India, but nothing in terms of daily,

day-to-day involvement of

them, because they are sitting in Japan, and every supporter we just have a board meeting with them to deal with us. So, involvement would be just in terms of technology transfer, once they are connected.

Okay, and what about the sourcing of acrylic solid surfaces from our side to their worldwide distribution? Again, it is the same thing.

The ITA will take the relic out so that they are already buying from USA. The operating OEM is also that they are taking the gravity soon.

I missed your comment. Your voice is very, very feeble, I would say.

I think it is, again, we will, we also don't know right now. In the next three corners, we will get you.

Okay, sir. And the next question for this India import substitution, we are trying to do domestic sales and all right. I was seeing your latest. And I see that we are stuck at this 300 crore of run rate in India for the last four years, and we are restructuring the domestic business and all. I was just wondering, what is the right of win we have in Indian markets because of which, like the way you mentioned, right, in a couple of quarters, like Q3 onwards, we'll start seeing changes. The supply chain or the people who are already selling in the market, they are already in place. I was just wondering what we as a company will do different because of which we will start seeing better numbers in coming times. Are you talking about acrylic or are you talking about laminates? Laminates in our domestic market. So laminates, again, I can answer this question. Okay, sir, I think I'm all set. Thank you and wish you all the best.

Thank you.

Thank you. We take the next question from the line of Videsh from the Key Investment. Please proceed. I would request Mr. Pradesh to unmute and message me. Mr. Pintish, please let me know that let's speak. I would request Pritesh to rejoin the queue till then we will proceed with the next question. We take the next question from the line of Rahul Seh and individual investors, you may proceed.

Yeah, good morning and thanks for the opportunity here. I am an individual shareholder with your company. I just have two questions. First thing is regarding the delay in the, you know, plant commissioning, because in the last call, as far as I remember, if I remember correctly, Mr. Jabesh Gupta had said that there were some issues with environmental clearances, which were then sorted out, and

the plant had to, was supposed to be commissioned soon.

Now, this time, again, there is some delay, and the reason is now in family view. So, I request some clarity on the issue, like, or if there is some other strategic reason, because of which you cannot divulge the finer details, that is also understandable, but if you can share that. Also, second question is... Regarding ICA partnership, and I believe that ICA has nominated some members on the board already. So there must be some roadmap which must be visible to the growth of the company. So again, if you can share that, if there's not any strategic limitations to that, you can help us being investors in your company, it will give us some clarity on the issue.

Yes sir, I am again repeating which you mentioned that at that time in the environment, if you go to the house, we have never been to this type of law. If somebody whispered already, you can hear it.

Sir, sorry sir, but your voice is very feeble. If you can, I don't know if the mic is on something, but we are unable to hear you properly.

Hello? You think? No. Now it's okay.

Sorry to interrupt, sir. I would request you to please come closer to a device a bit and then speak. Can you hold the mic towards your mouth and then speak?

It is okay now?

Yes, sir. It's okay, sir. Please.

Well, listen, I already mentioned you at that time there was an environment problem. If you go through a strategy, we are just plant, this is already become the best plant, and we have never found that there will be during instruction, there will be different, different small, small, different type of water. Rain, last year, last thing go on into that. So, the rain is extended. It will delay the project by one second month. Now, you see, dry land is already going on. We are quite hopeful, we are giving them 50 days more now, it is already on machinery using one, it is already a machine in your house, that is, this plant, size and what we are doing now. We are quite hopeful, maybe one week more delayed, which we mentioned, how we think that it should not be a rational regime, we are more worried than we are. So, certainly, then thermics, what is there? Big capacity of boilers, so, by the end of August, it will be definitely commercial production, not trial, trial is already going on. So, second, like you mentioned in Japanese, they have been yesterday, day before yesterday, we have first meeting this time. First and 22nd, and they are of course, seven and eight people on the board. And they have not given anything, and neither we discuss anything about the future. And particularly, asylum is not dependent on them. Our market in Laminate, our market is already bigger than Ica. This is their producing in India. We can now accept only Japan. Japan, they are very famous as their brand is called HDL is moving. And they have profit only in Japan plant. Other plants are there running not in very very good shape. So, they have not mentioned their ideas about what is this, expectations, but they are very happy about the first part we are doing. And here, this estimation we given to them, we are sure that this year also, even on the way of the Pranatha also, we will achieve more than a goal which we have mentioned earlier.

And we have Emma Potter for the new block.

And sir, one more thing, like with this open offer thing, Aika not getting the full share what they wanted, there was supposed to be, you know, some offloading from your side to them. So, if that...

I think you are not, you are not going to do that, sir. It is already more than one month. Already 45 days.

That makes sense. so, Like, now you again are going to increase your stake. What do you plan to do, sir? Are you going to increase your stake from the open market for the money?

We already have a 17% and we are the promoter of the company and they are mentioning it. We soluted on 22.50 and now we know the price we are going to. We have no plan yet. Yes. Yes, it was just in some time with me.

Sorry to interrupt Mr. Rahul. I would request you to join back the queue as there are several participants waiting for their turn.

Okay. Thank you. Thank you for the opportunity.

Thank you so much. We take the next question from the line of Aditya Srinivasan, an individual investor. Please proceed.

Thank you for the opportunity. I hope I'm audible, and congratulations on a great set of numbers. So, you mentioned that in the domestic market, we will see good change only from Q3 of FY27. So, I just want to know how this will ramp up, and what will be the revenue share? What can we expect the revenue share, maybe a tentative percentage? And also with the export share contracting, how can we expect the EBITDA emergence to move as well? So this is my first question. I'll come back with my second question once we're done with this question. I think there won't be any contraction in the export market at all. I think the ratio might be same. So the market, we're doing a 25%. We are trying to run the domestic market in a very efficient way, so that it doesn't hamper the market at all. And again, Q3 onwards, we expect the numbers to be better. Again, there cannot be a magic kind of thing in Q3 either, but it would be happening up slowly slowly, and you will see that in the number exam. Understood, sir. Thank you. And also for my second question, on the new upcoming plant, before you mentioned at a 35 to 40% capacity utilization, revenue of both 350 to 400 crores. 25 to 70 crores? No, no, we said 25 to 30 crores. We said 25 to 30 percent of the conservative. Understood, understood. Okay. Okay. All right, sir. I'll let you move forward.

Thank you.

Thank you. We take the next question from the line of Yoganj from Mythbell Analytics. Please proceed.

Thank you for the opportunity. Congratulations to the entire STYLM team.

Sorry to interrupt, Mr. Yoganj. I would request you to please come closer to your device and then speak. Your voice is coming a bit low.

Is it better now?

Much clear.

Thank you for the opportunity, sir. Congratulations to the entire Stylen team on a great set of numbers. So most of the questions have already been answered, so I won't repeat them. Just one question on your domestic side. Like in the last con-call, you were mentioning that you have taken certain price hikes. Keeping that price site in mind, if you could just share what was that price site, and with the price site, we don't see a meaningful change in the top line year on year. So, if you could just broadly explain that, and also, now with the improved metrics that you are putting in place, how would the EBITDA margin on the domestic side change? We understand that before the past issues, baggage was there and the EBITDA margin on the domestic side was lower. So going forward, how do you see those things changing? Again, not a very nearsighted change I'm expecting. From your answer, probably you can talk about a year's plan that you have.

I think during the last, what he was asking in the first question about the price tag, yes, there was a price tag in the metric also, in multiple sectors, so it is not that there is one standard price tag, again, you can have a product with a price tag, which is actually difficult to even mention what price tag is there. Second point would be regarding your metric, definitely, quarter one, the volume would be same as what you would mean. In Q4 or earlier, a month behind as well, so you would slowly see any Q2 also, using Q2 also you would see the ran top of the volume, that may be Q3 you see a significant graph out, so it is being very slowly and steady.

Got it, sir. And, sir, on the EBITDA margin side, if you could guide how that will evolve.

As of now, I think we are looking at, we actually don't calculate both the things separately, but it is difficult to calculate the EBITDA margin for domestic and export, looking at the production, which is common, looking at some of the expenses, which are, almost everything is common besides the domestic marketing sales team. But I think the margins would kind of be the same.

Got it, sir. And, sir, on the ICAST partnership that you've been talking about, and a lot of participants have several questions around it. So, you said, we will be taking care of the business, the operations, even the market development, and at max, we'll go for a tech transfer from them. Right? So, this tech transfer will be related to the laminate product or any other product because I suppose there are…

Can be for anything.

Can be for anything.

And this was, this is nothing new, this was from day one only that they are just a strategy partner and the company is being run by my father and my father. It would be a technology transfer and due to any product.

That's it from my side, sir. I'll get back in the queue. Thank you and all the very best.

We take the next question from the line of Chirak Shah from White Pine Investment Management. Please proceed.

Yes, thanks for the opportunity and congrats for good set of numbers. First of all, the first set of questions is on basic business. So, one, can you update where are we in the course correction and does it also mean we need to add more SKUs as well as adding more distributors or cover regions? And by when do you expect the course correction will be over? It will be another 6 months to 12 months, most of the work is done.

Correct. I think you're right. Maybe from three to six months, adding more distributors, adding more partners in various markets, various cities. They were actually not present in many of the states only. That is why we are taking time to actually enter those markets and make distributors get the team right.

Okay. And does it also be more SKUs need to be added in the existing locations also?

Sorry, can you repeat?

More SKUs. Not SKUs.

No, SKUs. Again, product launchers. Again, the question is that we were actually not present in many of the cities.

We were just hoping on that.

Now the main thing is just adding more cities, adding more parts.

Okay. And sir, second question is for CFO for the quarter. Is that there has been a margin improvement in the domestic business while revenue may be stagnating, but because when we look at the data, there is a significant improvement in various cost items. So has domestic business seen, and can you quantify the data change if it was actually last time?

I will only answer this. This is actually, I cannot comment on the change, but actually we have... Stop the losses which were happening in the domestic markets in many quarters. So you can see that loss have been reduced.

Your voice is echoing.

I think that the losses have been reduced. That is the only thing which might be at the margin.

And on the U.S. exports, anything you would like to share as an update in terms of traction or anything, any update you would like to share on the U.S. region exports?

So nothing to share as of some jobs we are supplying there. I think the status situation, no one knows actually about it, what does that mean, but in today's morning news reports. I just said that 10% is continuing, this was 10% earlier, and that has been continued, as of now.

Yeah. So now, I presume customers would be coming with orders, right? Jo orders pahle ahtak gahe the, for variety of revils.

Has that any odds? It's good. Again, it's going to start right here. Again, it's going to be 10%. There is no change in the duty as of now.

Okay. So, but we are not...

Can you interrupt Mr. Chirag? Could you please rejoin the queue as there are several participants waiting for their turn? Thank you so much. We take the next question from the line of Anup Parekh from Anandrathi Shares and Stock Brokers. Please proceed.

Yeah, thank you for the opportunity. Sir, can you give us some sense on what is the current cost of phenol and minimum in rupees per kg, and do you expect any further cost inflation on deco paper, craft paper, or chemical in the near future?

I know that phenol prices are approximately around $1300 to $1400 per run. Malamide is around $1000 to $1100. We cannot predict the raw material situation at all, whether it is plastic or the plastic or any of the raw material. It actually is going to end on this war situation and even if the war stops, it is not that the raw material will drop down drastically. The raw material might reduce slowly, it might take 6 to 9 minutes to take back the law. There are multiple size types which we have taken, in the case of product treatment in the financial market. I do not exactly tell you the person they know as it is, because if it is a 1ml laminate, it is a different size size, it is a different size size, for compact laminate, every product is a different size. And as of now, we don't see any person's right size, because I think the normal period is still the same. If it further goes up, and if the situation worsens, then we have to leave.

And so what is the reason for 10% QoQ decline in the employee cost and also a sharp variation in the depreciation amount? So if you can give a sense on what would be the quarterly employee cost and depreciation amount for commissioning of the new laminate plant.

Thank you.

Yes, 10% QoQ reduction. So what would be the reason?

I think your voice is not audible. I think you think 10% reduction, I still don't understand.

Am I audible?

Can you repeat your question?

What is the reason for 10% QAP decline in the employee cost and a sharp variation in the depreciation amount? And also, what would be the quarterly employee cost and depreciation post submission of the new laminate class?

Thank you.

Maybe they are asking that there is a potential growth for the quarters

and dry cost as well as, so going forward firstly for the quarters, I think we employed costs will remain the same, because all the major costs have already been incurred, for the new plant already we have higher people, so the basic there will be just cost of labour or supervisors, but all the higher people have already been incurred. Predicting high, so-called good will be the same for the time.

I think you are comparing with the 31st March 26th, correct? I will do your thing. Six months later, please. So, this is a project. How to ensure it efficiently and efficiently?

Hello.

Yes, the last question, what is the proportion of a laminate revenue which comes from US and what portion comes from Middle East market?

From Middle East market, I think that I don't have the numbers right now in my hands, but I will, you can, you can give me the case for millions of dollars. I don't have the numbers right now. I think U.S. would be around 10%, 10% to 12%, and Middle East would be around 10% to 15%.

So can you repeat, 10% to 11%?

U.S. and Middle East both would be 10% to 15%.

Understood. Thank you.

Thank you. We take the next question from the line of Ankur Kumar from Alpha Capital. Please proceed.

Hello, sir. Thank you for taking my way. Sir, actually, your voice has been very difficult to understand. So my questions are mostly repeat. So I wanted to understand. You are saying this new capacity is going to come from September, and we expect 300 crore type revenue from this plant in this year, and next year around 600 to 700. Am I understanding it right, sir? And on depreciation and employee, can you please repeat what number you said, sir? I couldn't understand.

I think the employee costs will remain the same. The reason is we have already incurred all the costs. Last quarter only for the new class.

That is why we are expecting the same employer quality. Okay. Can you hear me now? Depreciation?

Depreciation for the new plan?

For the new plan?

Si, depreciation for the new plan, the new plan. Hello. Sorry sir, can you repeat, depreciation will be? Yeah, let's see, the depreciation, okay, can you please send me a position or a general question to address the depreciation?

Hello, am I listening to you?

Okay, sir, but I couldn't understand. Maybe you can upload transcript. I'll read through it, sir. Thank you. Okay, okay.

Thank you. We take the next question from the line of Rudraksh Rahecha from iThought Financial Consulting. Please proceed.

Yeah, thank you for the opportunity, sir.

Just one question on the exports front. Could you help us understand which are the markets that are doing very well for us, since this is the highest quarterly exports we have ever done, and how do you see this going forward? Do we need more geographies, or

will we generate more growth from the existing geographies?

So we've been doing great growth on the existing geography as well as having mostly obviously good points, and I think Europe is our most, Europe is doing good, further ahead has been far away, so I think, to be honest, it is going positive for us in the report mark.

Good. And there are no challenges in the U.S. and the Middle East as of now.

As of now, see, there are challenges in terms of respect we're talking about right now for Middle East. In fact, with an act going right now, this case is a very big problem. But that is a part of the business. So I think that's what everybody needs.

And that is what entities are not only for style. Thank you so much.

Thank you. Ladies and gentlemen, we take that as the last question for the day. So, on behalf of Systematic Shares and Stocks Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.