Ladies and gentlemen, good day and welcome to the Stylam Industries Limited Q1 FY27 earnings conference call hosted by Systematix 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 concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Anushka Patnaik. Thank you and over to you, ma'am.

Thank you. On behalf of Systematix Institutional Equities, we welcome you all to the Q1 FY27 Conference Call of Stylam Industries Limited. From the management side, we have Mr. Jagdish Gupta, Managing Director; Mr. Manit Gupta, Wholetime Director; Mr. Kishan Nagpal, 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.

Ma'am, I think we already submitted, you already mentioned it is our pleasure to welcome you all on Stylam Industry Limited Q1 financial results 26-27 and it is already on the, we submitted to NSE and BSE and it is available on Stylam website also. So now you can have any more about the company so you can start with the question also. -- Hello?

Sir, we can hear you.

Yes. So it is already on the website, only all financial results submitted to investor presentation is also on NSE and BSE and on Stylam website also. I'm sure everybody has gone through all already. So, you can start with the question.

Thank you very much. We will now begin the question -and-answer session. we take the first question from the line of Dhruv Bajaj from GrowthSphere Ventures.

Yes. So, thank you so much for the opportunity, firstly, congratulations on a great set of results. We always thought that 20% EBITDA margin was a ceiling for you guys but you guys even cross that number in this particular quarter. So, my first question was, sir, what causes margin spike beyond this 21% kind of range despite lower exports Q-on-Q basis? Like what's the sustainable margins? Once exports starts to ramp up further post the new capex coming in because we are unable to understand the exact margin trajectory of this type of business. So, if you can guide on that front.

I think the margins will remain the same, that is why even when the new capex will start end of August. So, we can expect the similar kind of margins 19%, 20% plus.

Sir, did we get so inventory type of benefit in this particular quarter because we sort of the 20% kind of range that we maintained earlier?

Just a moment. Is it better now?

Yes.

I was just trying to understand, like did we receive some sort of inventory gain benefit in this particular quarter, given the volatility in the wooden prices? Jagdish Gupta No, no inventory gain. nothing. It is our efficiency and it is our more utilization and i f you go for sales figures it is increased. So, when sales increase, the expenses automatically reduce.

Perfect. And sir, in one of the previous calls, you did mention that they are operating near full utilization and the customers are waiting for a new capex to come live. And since you've already guided that new capex -- sir, I had a couple of questions on that front. 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 capex comes like? Or will it be on a month -on-month basis, the customer will assess the demand and then give us orders? And second one sir…

It will be on a month-on-month basis only. So, there is no POs in our industry that we get a PO for entire year. Plus, what we are looking at for the first year, maybe 20% to 30% plus capacity utilization for the new plant.

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

I think we want to be conservative on the call, so that's why I gave a figure of 30% plus on the capacity utilization for the first year.

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 Aica's stake sale or the stake control was over. And in the previous quarter we mentioned that we will mention about the same in this current quarter. So, any updates on that front considering brokerages are coming out with reports that, yes.

No, it's not yet. To be honest, we are actually evaluating 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 around and getting more capex done. So that is why, once plant is operated by end August, early September, definitely we will ann ounce about our new capex.

Fair enough, sir. But just to understand directionally speaking, are we focusing more on this laminate segment for the newer capex or we will expand in some other wood panel adjacency?

In laminates there will be a saturation for every company. We do not actually want that. It would be product going along laminates.

Which would help us actually strengthen, which would help us strengthen the domestic market first.

Okay, fair enough. So, the newer capex 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.

Sir, congratulations on a healthy set of margins. 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 the trial production or commercial production?

Commercial production would be 1st of September, first week of September.

Trial is already done or not?

Your voice is not clearly audible. Commercial production will be September.

Understood, got it. What sort of price hike you have taken in this quarter? And secondly, even in this quarter also 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 domestic getting revived?

Keshav ji, I think we have discussed this in the last call also once that it actually takes time to revamp the domestic market. If something was not wrong, was not correct for the last three-five years, then no one can expect us to just do wonders in one quarter. That is why we -- in the first call also -- we told that it might take two to three quarters to actually revamp the entire domestic market. That is why it is not about the price hike, the entire restructuring is happening where new team is being built up, new distributors are joining, new warehouses are being taken up for the domestic market. And you will definitely see the results from Quarter 3. I won't even say Quarter 2, but you will see the results from Quarter 3 onwards.

Okay, got it. Thank you, that's it.

Thank you. We take the next question from the line o f Resha Mehta from Green Edge Wealth. Please proceed.

Yes, thank you. Congratulations, sir, for a very good set of numbers. So, first question is , this plant commissioning has been getting delayed I think almost since November of 2025. So are there any specific reasons , and we have seen these delays in timelines , multiple times. So, is there a further risk that we are seeing from this August or September commercial production timeline to it getting pushed forward?

And if you could talk about l ike what are the reasons for the same? And also in the same li ght, see the reason for asking this question is I think we were expecting some INR300 crores odd revenues from this new plant in the current financial year. So, if you could also comment on that?

I think you're right. I think I'll answer your second question first. Whatever you are expecting around INR300 crore s revenue from this third plant would definitely be there. And the delay was due to multiple reasons. I think due to our old family problem, I think we ourselves slowed down the project. But now everything is okay , and that's why we have actually restarted the work. And there is no risk further ahead. I think that is why nothing more than one month we can push the plant as well. So, by our target is maximum by 1st September, I think it would be hopefully by 15th or 20th August only, sorry, 15th or 20th August only, but maximum we are taking a date of 1st September.

Dry run, dry run trial is already going on.

Right, right. And sir, how I think you did answer to the previous participant in terms of the ramp- up. So, I think because your voice is feeble, I missed that. What did, 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 were saying, I think we are pretty hopeful that we will be able to achieve that from the third plant.

Okay, so 30% ramp-up by the end of this financial year, right, for the new plant?

Correct, correct.

So, exit will be 30%. Okay, get it.

I think based on the value of what you were saying, around INR250 crores to INR300 crores, it would be easily achieved from the third plant.

Okay, so INR300 crores kind of INR250 crores to INR300 crores revenue we can still see.

Yes, yes, correct, for INR250 crores to INR300 crores.

Got it, got it. And domestic business we are kind of trying to turn that around and do ing some restructuring. So if you could elaborate on like what specific steps you all are taking and in what areas? That would be very helpful. And I understand while 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 are just 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 exports we are doing such numbers, why not domestic? Whereas the entire industry is the other way around where domestic is the core business for them and export is a small smaller business for them, whereas only for Stylam it was the other way around.

We are not doing anything u nique or something new, it is the same way opening warehouses wherever required, getting that trust back with the distributors, getting extra partners, and getting the right team.

Got it. And sir, on the inflation side, right, because now aga in, we've seen that 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 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 whatever price hike we have taken; it would remain intact. If there is a reduction in raw material, if the war stop s, definitely we have to reverse a little bit, but 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, if I can squeeze in one or two more questions.

Yes, go ahead. I think that is up to moderator, I don't have a problem.

Sure, great, thank you. And on the export side, so how are we seeing the demand shaping up? And as far as the US 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's 10%, but I think today morning it came a news that US is implementing because the 10% had to go 0% from 24th of July, which 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 the today's today morning news came, we have to recheck it once.

Right, right. And sir, 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?

Yes, yes, I think the existing plant capacity whatever we did, there is still a slight , if we talk about laminate we still have a slight gap maybe 5 -10% more , if we actually work on the efficiency more further. Acrylic is completely empty right now, but we are as what we were discussing earlier that domestic we are revamping the entire team which acrylic is a part of it as well as exports.

Right, right. All right, thank you so much and best wishes.

Thank you. We take the next question from the line of Surendra Singh from My Equity Sherpa. Please proceed.

Yes, thanks a lot. Am I audible?

Yes, thank you. So, sir, this new partner, I saw 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?

Sir, nothing as of now because they have officially joined this month. Secondly, no involvement from their side as they are themselves, they are a strategic partner. And as of now there is no discussions about export to them or anything of that sort.

Okay, yes. So that 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 things can evolve in terms of technology transfer to India, but nothing in terms of daily involvement of them because they are sitting in Japan and every quarter, we just have a Board meeting with them to give the results. So, involvement would be just in terms of technology transfer once they are aligned with us.

Okay. And what about this sourcing of acrylic solid surfaces from our side to their worldwide distribution?

Again, it is the same thing that Aica will take acrylic also as they are already buying from USA. They are doing OEM. We are quite hopeful that they will start taking acrylic soon.

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

I think it is it is again , we also don't know right now. In the next three -four months we will get to know.

Oh, okay, sir. And the next question, sir, this India import substitution we are trying to do domestic sales and all, right? I was seeing your latest investor presentation and I see that we are stuck at these INR300 crores of run rate in India for 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 market because the way you mentioned, right, in couple of quarters by Q3 onwards we'll start se eing changes. So, the supply chain or the or the people who are already selling in the market, they are already in place. So, 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 talking about laminate?

Laminates in our domestic market.

See, laminates we have again I think I answered this question to the previous question as well that we are not doing anyth ing unique. Again, it was the family problem which just resolved a couple of months back. So now we are restructuring the entire thing. And there is no import substitution of laminates because India itself is a laminate hub. So, we are just restructuring the

team, getting the right people, getting new partners, opening warehouses wherever we need, then on the marketing activities wherever possible to get that brand back.

Okay, sir. I think I'm all set. Thank you and wish you all the best.

Thank you.

We take the next question from the line of Pritesh from Lucky Investments. Please proceed. I would request Mr. Pritesh to unmute and speak. Mr. Pritesh please unmute and 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 Singh, an Individual Investor. You may proceed.

Yes, good morning and thanks for the opportunity here. I'm an individual shareholder with your company. I just have two questions. First thing is regarding the delay in the plant commissioning because in the last concall as far as I remember, if I remember correctly, Mr. Jagdish 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 again family feud. So, I'd request some clarity on the issue like or if there is some other strategic reason because of which you cannot divulge the finer details, so that is also understandable, but if you can share that. Also, second question is regarding Aica partnership and I believe that Aica 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 can it will give us some clarity on the issue. Yes.

Listen, I'm again repeating which you mentioned that at that time environment issues go to the site. We have never built this type of plant. If somebody visited already, you can see that.

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

Hello? Listening? Now it’s, okay?

Sorry to interrupt, sir. I would request you to please come closer to the de vice a bit and then speak. Like can you hold the -- can you hold the mic towards your mouth and then speak?

Is it okay now?

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

You listen, I already mentioned you at that time , there was environment problem. If you go through strategic, we are this plant is world number best plant and we have never thought that there will be during construction there will be different different small small different type of problem. Rain, last year, l ast three-four months back, so big rain in Chandigarh, it delayed the

project by one or two months. Now if dry run is already going on. We are quite hopeful, we are giving 10-15 days more now days. It is already our machinery is huge, once you can visit yo u can see the plant size and what we are doing. We are quite hopeful, maybe it is one week more delay you should mention how we think that it should not be operational very soon. We are more worried than you. So certainly, then next boiler they are big cap acity of boilers everything. So, by the end of August it will be definitely commercial production, not trial. Trial is already going on. So, second like you mentioned Japanese, they have only yesterday, day before yesterday we have first meeting with them. First on 22nd and they are of course seven -eight people on the Board. And they have not given anything and neither we discussed anything about the future. You know particularly Stylam is not dependent on them. Our marketing in laminates, our market is already bigger than Aica which they are producing in India, Vietnam, etcetera. Only Japan, Japan they are very big as their brand Aica HPL is huge and they have profit only in Japan plant. Other plants are they are running not in very very good shape. So, they have not mentioned their ideas and all what is their expectations, but they are very happy about the first quarter results. And we are with estimation we given to them, we are sure that this year also even on the delay of the plant also, we will achieve more than figure which we have mentioned to them. Because we have enough order for the new plant.

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

I think you have not you have not gone through the portal. It is already more than one month, already 45 days.

Correct, sir. So, now you again are going to increas e your stake, what do you plan to do, sir? Are you going to increase your stake from the open market?

No, but why we need? When we already have a 17%, and we are promoter of the company and they are mentioning it we the diluted on 22.50 and now it is more the like we mentioned we have no plan yet, just in future if something will be needed.

Any preferential allotment plan, sir?

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

Okay, thank you, thank you for the opportunity. Thanks.

Thank you so much. We take the next question from the line of Adithya Srinivasan, an Individual Investor. Please proceed.

Oh, 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 margins 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 for the market if we are doing a 25% whole of revenue right now in the domestic. That might increase slowly, but it doesn't mean that we are focus on the export market or our EBITDA margins affect in that way. We are trying to run the domestic market in a very efficient way so that it doesn't hamper the margins at all. And again, Q3 onwards we expect th e numbers to be better. Again, they cannot be a magic kind of a thing in Q3 either, but it would be ramping up slowly , slowly and you would see that in the numbers itself.

Understood, sir. Thank you. And also, for my second question on the new upcoming plant, before it mentioned at a 35% to 40% capacity utilization revenue of worth INR350 crores to INR400 crores, but now you mentioned.

No, no, we said 25% to 30%.

We said 25% to 30% on a conservative basis.

Understood, understood. Okay, okay. All right, sir. I'll move I'll let you move forward. Thank you.

Thank you. We take the next question from the line of Yogansh from Mittal Analytics. Please proceed.

Hi, sir, thank you for the opportunity. Congratulations to the entire Stylam team.

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

Thank you for the opportunity, sir. C ongratulations to the entire Stylam team on a great set of numbers. Sir, 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 concall you were mentioning that you have taken certain price hikes. So, keeping that price hike in mind, if you could just share what was that price hike, and with the price hike 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 domestic side was lower. So, going forward, how do you see those things changing? Again, not a very near-sighted change I'm expecting from your answer, probably you can talk about a year's plan that you have.

I think sir in the last what you were asking the first question was the price hike. Yes, there was a price hike in domestic also in multiple sectors. It is not that there is one standard price hike.

Again, each and every product has a different price hike which is actually difficult to even mention what price hike we take in domestic. Second point woul d be regarding your domestic. Definitely Q1 the volume would be same as what we were doing in Q4 or maybe a year behind a month behind as well. So, you will slowly slowly see in Q2 also you in Q2 also you would see the ramp -up of the volume. Definitely Q3 you'll see a significant ramp-up. So, it is it is being done slowly and steadily.

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 to be we actually don't calculate both the things separately because it's difficult to calculate 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 sa les team or export and domestic. But I think the margins would kind of be the same.

Got it, sir. And sir, on the Aica's partnership that you've been talking about and a lot of participants has had 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 laminates product or any other product because I suppose there are…

It can be for anything. And this was this is nothing new, this was from day one only that they are just a strategic partner and the company is being run by my father and myself. So, it would be a technology transfer can be for any product.

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

Thank you. We take the next question from the line of Chirag Shah from Whitepine Investment Management. Please proceed.

Yes, thanks for the opportunity and congrats for good set of numbers. Sir, my first set of questions on domestic 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 distr ibutors or cover regions? And by when do you expect the course correction will be over? Is it more another six months to 12 months or most of the work is done?

Correct, I think you're right, maybe from three to six months adding more distribut ors, adding more partners in various markets, various cities in India. Even we were not present in many of the states for now. So that is why we are it is taking time to actually enter those markets and make distributors, get the team right.

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

Sorry, can you repeat?

No, not SKUs. I think again product launches, again question is that we were actually not present in many of the cities. We were just focusing on those four or five cities. Now the same thing is just adding more cities, adding more partners.

Okay. And sir, second question is probably for CFO for the quarter. Is there h as 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 margin and can you quantify the delta change if it was negative last time?

I will answer this, there is no actually I cannot comment on the change, but actually we have stopped the losses which were happening in the domestic market since many quarters. So, you can see that losses have been reduced.

Your voice is echoing, sir, we are not able to understand.

I think the losses have been reduced, that is the only thing which might be an improvement in the margins.

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

Sir, nothing to share as of now, we are supplying there. I think the tariff situation no one knows actually about it what is happening, but in today's morning news it was mentioned as 10% continue, which was 10% earlier and that is being continued as of now.

Yes. So now I presume customers would be coming with orders, right? The orders that were previously stuck for variety of reasons. Has there any…?

Orders were being processed earlier as well. I’m saying it again: the duty was 10% before, and it remains 10% starting today. So, there is no change in the duty as of now.

Okay, so but we are not seeing.

Sorry to 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 Anu

from Anand Rathi Shares and Stock Brokers. Please proceed.

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

Right now, the phenol prices are approximately around USD1,400 per ton. Melamine is around USD1,000 to USD1,100. We cannot predict the raw material situation at all, whether it is kraft paper or deco paper or any other raw material. That totally depends on this war situation and even if the war stops, it is not that the raw material will go down drastically. It will be there, but the raw material might reduce slowly, it might take six-nine months to get back to normal.

Okay. And how much price hike was taken in the domestic market in Q1 FY27 and do you expect to take…?

Again, there are multiple price hikes which we have taken in different product segment in the domestic market. So, I cannot exactly tell you in percentage on each of the things because if it is a 1 mm laminate, it's a different price hike, 0.8 is a different price hike, for compact laminate every product application has a different price hike. And as of now we don't see any further price hike because I think the raw material is still the same. If it further goes up and if the situation worsens, then we have to rethink.

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

Employee cost will be low, is that good or bad? Hello?

Yes, sir.

Are you talking about employee cost?

Yes, 10% Q-on-Q reduction.

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

Am I audible?

Can you repeat your question?

What is the reason for 10% Q -on-Q 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 commissioning of the new laminate plant.

I think you were asking that what is the cost for the going forward quarters for employee cost as well as. So going forward firstly for the quarters, I think the employee cost would remain the same because all the major cost has alrea dy been incurred for the new plant, already we have hired people. So the basic there will be just cost of labor or supervisors, but the all the high-level people have already been hired. So cost would be the same what it is right now.

Hello? Depreciation?

Yes, sir.

Listen, I think you are concerned regarding the employee cost. I think you are comparing with the 31st March 26 quarter, correct? Last quarter.

Yes, I got your point. So basically, in the last portion we are doing some actuarial valuation. So that actuarial valuation we have considered in the audited balance sheet in the last year. So, this is because of that. In the six months when we compare to six months, we are doing actuarial valuation based on six -monthly basis. So, this is the Q1, so actuarial valuation we have not considered here. Hello? Yes, ma'am, I think it’s, okay?

Yes. Last question, what i s the proportion of the laminate revenue which comes from US and what portion comes from Middle East market?

From Middle East market, I think I don't have the numbers right now in my hand, but I will we can send an email to you giving you the details for Middle East region whatever we are doing. As of now I don't have the numbers with me, but collectively I know, I think US would be around 10%, 10% to 12%, Middle East would be around again 10% to 15% each.

So can you repeat, 10% to 11%?

US and Middle East both would be 10% to 15% each.

Understood, sir. 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 question. Sir, actually your voice has been very difficult to understand, so my questions are mostly repeat. So, I wanted to understand you're saying this new capacity is going to come from September and we expect INR300 crores type revenue from this plant in this year and next year around INR600 crores to INR700 crores, am I understanding it right, sir? And on depreciation. And on depreciation and employee, can you please repeat what number you said, sir? I couldn't understand.

I think the employee cost would remain the same, the reason is we've already incurred all the cost last quarter only for the new plant. That is why we are expecting the same employee cost level only.

Okay. Can you hear me now? Depreciation?

Depreciation for the new plant?

For the new plant.

See, depreciation for new plant will come in the next month onwards. Hello? Yes, sir.

Sorry, sir, can you repeat depreciation will be?

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 Raheja from ithought Financial Consulting. Please proceed.

Yes, thank you for the opportunity, sir. Just one question on the exports front. Could y ou 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?

We will generate growth on the existing geographies as well as adding more geographies to the point. And definitely Europe is our most Europe is doing good. Further ahead I think APAC region and Middle East. So, I think to be honest it's going positive for us in the export market.

Got it. And there are no challenges in the US and the Middle East as of now?

As of now, see, there are challenges in terms of logistics if we talk about right now for Middle East. In fact, for the entire world right now logistics is a very big problem, but that is a part of the business. So, I think we are managing it and that is for everyone, not only for Stylam.

Okay, sir. Thank you so much.

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