CRL Silk Mills Q3 FY26: Moderate Growth, Retail Expansion, and Strategic Outlook

Ladies and gentlemen, good day and welcome to the CRL Silk Mills Limited Q3 FY26 earnings conference call. 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 pin zero on your Touchstone phone. Please note that this conference is now being

recorded. I now hand the conference over to Miss Aayoshi Gupta. Thank you. And over to you ma'am.

>> Thank you. Good morning ladies and gentlemen. I welcome you to the Q3 and 9 months FI26 earnings conference call of

CRM Silk Mills Limited to discuss this quarter's performance. We have from the management Mr. Gorak Poras president and

executive director, Mr. Ashud Galant, senior president and director and Mr. Sarendra Shetty, Chief Financial

Officer. Before we proceed with the call, I would like to mention that some of the statements made in the today's

calls may be forward-looking in nature and may involve risk and uncertaintities. For more details,

kindly refer to the investor presentation and other filings that can be found on the company's website.

Without further ado, I would like to hand over the call to the management for their opening remarks and then we can

open the floor for Q&A. Thank you and over to you, sir. Good morning and thank you all for

joining us for the earnings conference call of CR Silk Mills Limited to discuss Q3 and 9 months FY26 results. Wishing

you and your families a happy new year. I hope you all have had the opportunity to review our financial results and

investor presentation which have been uploaded to both the stock exchange and our company website. CRM continues to

focus on developing products that keep pace with changing market trends and customer needs. We aim to offer quality

choices across different price points and style preferences. Our brands enjoy strong recognition and we are committed

to building on that foundation with our integrated manufacturing and distribution setup supported by a

dedicated creative design team that drives innovation across our collections. We are able to deliver

consistently across all categories. In the third quarter of FY26, we saw demand pick up at the start of the

festive season. However, as the quarter went on, customers stayed cautious with their spending and footfall remained

moderate. The demand during the quarter remained largely occasion-driven with spikes limited to key events rather

rather than a sustained trend. As a result, the quarter delivered moderate performance.

Despite a challenging market environment, CRM has strengthened its market position and has grown the

overall business. Alongside this, the company has consistently expanded its retail network by adding new stores and

widening its retail footprint. In line with this measured expansion, we have remained disciplined in our capital

allocation, which has helped us maintain absolute IBITA while pursuing sustainable growth. In Q3 of FY26, we

continued expanding our store network by adding two Zcode and five DEO outlets, taking the total number of stores for

Zcode and Deo to 25 and 17 respectively. We remained focused on achieving our plan of opening about 35 stores slows

during the year. Our priority is to open stores in markets with strong potential, ensuring

sustainable growth and better long-term returns. We are pleased to share that the board of directors has declared a

second interim dividend of rupees three per share with a face value of rupees 2 each.

This decision highlights our ongoing commitment to rewarding shareholders and reflects the confidence in our financial

strength and future growth prospects. In quarter 3 of FY26, our total income was 639 crores compared to 586 crores in

the same quarter of the previous year, reflecting a year-on-year growth of 8.9%.

For 9 months FY26 period, the total income reached 1,782 crores up from 1546 crores in the corresponding period last

year, representing an increase of 15.3%. This performance highlights the resilience of our business model and the

steady momentum created through disciplined execution and strong customer engagement.

As we move ahead, we are placing greater focus on strengthening our core capabilities in design, product

development, and understanding emerging consumer preferences. Our aim is to offer products that are more relevant,

contemporary, and aligned with what customers are seeking across different markets. We continue to refine our

internal processes and enhance coordination across teams to improve speed, consistency, and execution across

our categories. Alongside these efforts, we are also intensifying our marketing initiatives

to support the growth of our business. By strengthening brand visibility, enhancing digital engagement, and

running targeted campaigns, we aim to build deeper customer connections and accelerate demand across key markets.

We see meaningful opportunities emerge across businesses and we are aligning our strategies to participate

effectively in this growth with a disciplined approach and a clear long-term vision. We believe CRM is well

positioned to build momentum and create sustained value in the years ahead. Now I would like to request our CFO Mr.

Surrenra Shetty to share highlights of the financial performance. Thank you. Thank you Guruji. Good morning everyone.

For the third quarter for the financial year 26 or total income today rupes 639 crores compared to 586 crores in the

quarter 3 of financial year 25. In terms of the revenue mix, fabric contributed 78%.

Government accounted for 15% and AN and others made up 7%. Our ABA for the quarter was rupes 84

crores as against 83 crores in the quarter 3 of financial year 25 reflecting a year growth of 1.5%.

The aida margin for the quarter came at 13.2%. PAT for the quarter 3 financial year 26

stood at 42 crores compared to rups 46 crores in the same quarter last year. The PAT margin for the quarter was 6.6%.

Moving into the 9 month period for the financial year 26 our total income reached,782

crores as compared to rupees,546 crores in the same period of the last year reflecting a year in growth of

15.3%. Aeta for 9 month financial aid 26 to date rupees 262 crores with the abeta

margin of 14.7%. Pat for the 9 month period came in at rupees 134 crores and pat margin was

7.5%. Thank you. That concludes my remarks. We can now open the floor for the question

answer. >> Thank you very much. We will now begin with the question and answer session.

Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove

yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a

question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.

The first question is from the line of Dave Gulwani from Care PMS. Please go ahead.

>> Thank you for the opportunity. Uh first question is what is the revenue from Zcode and in this quarter?

So the new retail business is uh for the I'll tell you for the overall 9 months so far and that is around 55 crores that

we have achieved in these 9 months. So our original target for the whole year original target for the whole year was

around 70 to 80 crores and we will I think achieve we'll be in line with those guidance.

>> Can you give a break up between them and >> we are not giving breakups at the moment because it's too early in the business

and we are giving an overall number just as an indication as to the progress that we've made. Oh um so why growth uh

second question is why growth in textile business has been just appro 3% whereas beer like Raymond has grown 11%.

Generally in the traditional business we we give a annual guidance and it's a seasonal business so we don't look at uh

quarterly numbers because they vary a lot and it also depends on the festivities. uh in this quarter

particularly Diwali was in the beginning of the quarter which resulted in the uh the sales in the previous quarter which

saw much higher growth. In any case we have increased the overall guidance for this year which is as an exception and

we uh from 10 to 12% as an overall company to between 12 to 15%. And by the end of the year we will be uh we are

confident of remaining within that guidance of 12 to 15% as an overall group.

So what is the volume growth in textile business this quarter? So once again it's not advisable to look

at it on a quarterly basis but if you look at a 9 monthly basis then there is a uh about about 9% odd volume growth

but again uh there is a difference in suitings and shirtings as a category. So it is more advisable to look at value as

a whole. What if you can provide for Y? >> I mentioned fabric is about 9%.

>> Okay. Uh also there was increase in gross margins by approximately 3% Y. What is the reason behind that?

>> Yeah. >> That is I think a combination of different product mix across different

segments. So >> I think it is a overall in the year we will see a balanced stable number

and there was also increase in processing and labor charges from it is approximately 14 to 15% of uh

net sales. Why is there is a certain increase that may be because of a buildup in inventory

that we are uh creating. >> Okay. for the next quarter which traditionally is the best quarter of the

year and store expansion was uh quite slow for Ziko this quarter. So will you be

able to achieve F26 store guidance for Ziko? It is uh our endeavor to achieve our uh initial guidance. Uh this third

quarter intentionally was slower because we wanted to focus on uh operations during the festive season rather than

store openings because we are working on a very lean team and that is why the a large part of the stores will open in

the second quarter to get better use of the festive season and that is why the third quarter the numbers are small but

we we are confident of getting in line with uh about those 35 approximately stores that we plan for the year.

And recently we have seen trends sales are slow down in recent quarter. So do we see it as an opportunity or a

challenge? >> I'm sorry can you repeat your question please?

>> Uh we have seen trend sales have slowed down in recent quarter. So do we see it as an opportunity or a challenge?

>> Yeah I think that the overall apparel market if you see as a whole is a very very large market. The largest player in

the market also is a very small percentage of the overall market share. So the market is very large and a large

part of that is unorganized. So there is already a big headroom for a lot of players to do well. We are in a very

small stage and to compare us with established players right now is not fair. And we are uh you know progressing

well. We have set ourselves some benchmarks and we are progressing well towards those benchmarks. We've given an

initial uh target for this year of about 70 to 80 crores. So we are in line with those targets. So I mean we are looking

at our own internal operations and how we can improve efficiency there rather than look outside. There is a lot of

headroom for growth and we are very confident with what we're doing and the results that we achieved so far.

>> Uh what are your store expansion plans for Zcode and DO for FY27? This is something that we will uh

declare by the end of next quarter. We are still in plans of uh deciding uh the numbers and the locations of what we

want to do and while when we firm up that maybe in the next quarter we'll have a better idea and share that with

you. >> Also will you be moving to any new geography.

>> Uh again that's something that we are reviewing at the moment. I'll be able to give you better clarity in the next

quarter. >> Okay. Thank you. >> Thank you.

>> Thank you. A reminder to all participants you may press star and one to ask a question. The next question is

from the line of Apurva from Whit Stone PMS. Please go ahead. >> Yeah, thank you sir for the opportunity.

So my first question is on the uh say in our quarterly numbers, how much is the loss from our uh retail business maybe

at IITA or BD level. >> We've given an uh initial guidance of 100 to 150 basis points drop in IITA for

the whole year. So we will stick to that guidance and we'll be within that uh limit for the whole year.

>> Got it. Got it sir. And so like what are store addition plans for the Q4 like you mentioned 35 stores. Uh so that is for

the Zcode planned for 35 stores for Zcode and they were put together. This year we have

opened uh I think about 22 stores and the balance stores is our endeavor to complete by March. Maybe there is a

spillover but this is a kind of broad guidance. Got it. So and my uh next question is uh

like uh what benefits you see like with the Europe happening like maybe as I know that although exports are only 9%

or maybe 10% approximately so do we see for exports as well? Yes, of course exports uh India as a

country is really promoting manufacturing and with these new FDAs coming in place uh that will also help

uh Indian manufacturing. Apart from that there are other uh you know global positionings of different other

countries that will also help India in terms of being an export destination for apparel and textiles. Uh we are already

exporting about as you mentioned 10% of our turnover. This is largely fabrics. So it's not direct export to these

countries but it is export to converters. So these uh new treaties and India positioned as a manufacturing hub

will definitely help us. Our business largely is domestic and branded. So and there is growth within that new retail

business is also growing faster than the traditional business. So I don't know in percentage what the numbers will be but

absolute value of course export there's a lot of potential for us to grow. >> Got it. Got it sir. And my last question

is on the revenue and the margin guidance for the FI27. >> So we have given an FI26 guidance and

we've upgraded that guidance from 10 to 12% to 12 to 15% uh revenue guidance and we maintain a 14% approximately beta

levels uh with the 150 basis points drop in retail uh for FI27. We'll get back to you by next quarter of the next year of

guidance. >> Sure sir. Thank you. All be respected. Thank you.

>> Thank you. >> Thank you. A reminder to all participants, you may press star N1 to

ask a question. The next question is from the line of Bun from Baba Investments. Please go ahead.

>> Uh hi sir, thank you for the opportunity. A couple of questions from my end like the chi revenue grew

approximately to 9 y and but the fact has declined. So could you break down like what are the key factors which has

been impacting the bottom line like for the performance of this quarter? Yeah. So there are two three major

reasons. Uh one is uh there is a one-time cost of this employee uh cost because of the new labor code and there

is some increase in advertising and sales promotion. So this is both these put together is roughly 10 12 crores

extra and then there is this retail uh sales that uh creates a lots of new retail businesses which is in in line

with what our expectation is. So these are the broadly the main reasons for the drop in ITA.

Now listen and so like the finance cost has been increased like on a y basis. So like should we expect this uh the same

cost in the ballpark like for FI27 like would we like remain elevated? >> This is largely due to uh some extra

working capital that was deployed throughout this year >> for preparing inventory and it's all

working capital requirements. Uh we are well within a comfort limit in terms of the debt uh that the company has. So uh

it's not so significant and not so worrying for us. We we are always in in endeavor to because it's a made to stock

business. So it is an ongoing effort to keep optimizing inventory and so this keeps varying for quarter.

>> All right. So like uh can you expect this to reduce or like stay same rather than going up?

>> We hope that the fourth quarter numbers should be better since it's the best quarter of the year. We are planning for

inventories. We are building up the inventory. So that is the reason for an increased working capital. So hopefully

by the end of the fourth quarter we should see a better number. >> All right. So like given VC code and

there have been like scaled under our own company and like uh operating model. So how do we like see scaling this like

is approach in terms of like capital allocation and return perspective over the long term.

>> So the it is I wouldn't say it is a scaled model. It is something that we are still

building. This is the first year of full operation that we'll see for this business. Some of the stores are still

opening within this period but right now we have more store openings than the number of stores that we have been

running. So it's still a very nent business which is still growing and we want to be very uh calculated in terms

of store openings. We have always mentioned that we are not chasing numbers in terms of store openings but

we want to work on uh efficient operating models and that is what I think as a strategy we'll continue to do

and use our capital wisely and prudently. All right. So say any margin guidance or

any something like that for Q4 we can expect something >> we don't give quarterly guidance because

the it's a seasonal business and that is why we give an annual guidance. So uh the 14% uh EITA uh guidance approximate

number without the retail calculation is is something that we will stick to. >> All right. So great that thank you a

lot. All the best. >> Thank you. >> Thank you.

A reminder to all participants, you may press star N1 to ask a question. The next question is from the line of Apurva

from Whiteststone PMS. Please go ahead. >> Yeah, perhaps I just missed one question. So if you can share the stol

economics, maybe the revenue per the rent. Uh so I think it is still very early uh in

in our journey to be sharing these numbers because uh I mean this is just the first year of operations. Hardly a

few stores have seen a year or just a little over a year. So we we are going to wait a few more quarters before we

start releasing these numbers. uh but in a in a nutshell I can tell you that qualitatively we have received excellent

feedback in terms of the product in terms of the pricing markets that we have opened have we have seen in this

festive season better footfall uh you know more repeat customers so tradition the trend seems to be very positive and

we are very encouraged with this response and we want to continue to grow this business and make it a meaningful

part of for the companies to run. >> Sure. So maybe so maybe like if you can share maybe like 3 4 years down the line

like how much revenue do you see uh these retailers would contribute? >> I think that we'll take it year-on-year

basis. We want to continue to you know work on the immediate operations and continue to expand these stores. As I

mentioned our expansion will be very calculated and we won't chase large numbers through keep opening and rather

than that work on the efficiency on the model a fabric business and a traditional business also will grow at

the same time. So it's difficult to say how much as a percentage this would this would become but of course because the

base is so small it will definitely be more meaningful than it is today. >> Sure. Sure. Thank you.

>> Thank you. >> Thank you. A reminder to all participants. You may press star N1 to

ask a question. The next question is from the line of Pratik Sha from Investing Alpha. Please go ahead.

>> Hello. Yeah. Hi. Am I audible? >> Yes, we can hear you. >> Yes sir. Please continue.

>> Yeah. So uh so my question is fabric still contributes more than 75% of the revenue. So how do you see this mix

evolving over the period? So fabric traditionally has been a much larger percentage um north of 80% since

of for a few years ago which has gone down to 75 to 78% now as other businesses are growing. There is a uh

indigo business that is uh also growing in the yarn and other segments that is about 5 6% now. And this retail business

that we we have now that that will start becoming more meaningful as uh years go by because the number of stores will

increase and the uh the turnover because we have more points of sale the turnover as a as a whole in terms of uh the

business will start growing. So that will take away share from the fabric business in percentage terms.

>> Okay. Got it. And sir, are there any plans to extend Zcode or do into online or even omni channels formats? And uh

how do you see digital channels complementing your physical retail strategy?

So in terms of uh e-commerce right now uh Zcode and Deo are not on the e-commerce channel because business is

new and we are focused on the offline format and we'll continue to focus on that format uh for some time because we

need to establish a foothold in terms of the number of stores that we open to be able to justify operating costs at at a

at an overhead level. uh but of course online is a is a format that is growing and it is a complimenting format for a

physical retail in terms of a retail brand experience for the consumer. So that is something that uh will be looked

at uh at a later stage but of course that is something at the back of our mind.

>> Okay sir got it. And so one last question uh as marketing investment increased to support new brands like VOR

and LEO. So how should investor think about marketing spends as a percentage of revenue over the next few years and

uh when when do you expect the spends to normalized? So marketing is an important part of uh

you know something that we continue to do because a traditional business is also a branded business and advertising

for us is more of an investment in terms of building the brand and to be able to continue to be in the mind of the

consumer. Uh this activity has been ongoing. Uh we had a little pause during co and then restarted maybe a year or

two ago. This year also we have uh you know elaborated our marketing spends and and being able to uh be visible during

the festive season. Uh the new brands Vod and Deo since they are more regional specific at the moment the marketing

spends are more regional and more digital. The spends as a percentage of turnover we have indicated between four

to 5% of revenue and this is the kind of number that we are comfortable with and will continue this year as well as in

the ongoing years and this includes the new businesses and as well as the traditional businesses.

>> All right sir. Got it. Thank you. >> Thank you. A reminder to all participants you may press star N1 to

ask a question. The next question is from the line of Rajiv Jane from Arcan Investments. Please go ahead.

>> Hello, I'm Yes. Yeah. Uh, thank you for the opportunity, sir. Uh, so first, could

you share your view on how discretionary spending patterns are evolving uh particularly when comparing demand for

premium fabric offerings uh versus the mass uh and valuedriven categories. We feel that uh India is a very large

country and there is uh you know discretionary spending uh is something that now in this festive season is

always at a high during in terms of when you look at the overall year. Uh then there is discretionary spending during

festive season. There are all kinds of different audiences and therefore uh premium as well as mass kind of fabrics

and all kinds of price points do well. Of course, on the value side, uh the the audience is much larger and therefore

the numbers are much larger, but there's a a good number of uh customers at the premium end as well. So, it's a it's

more festive driven than uh uh price point driven. >> Understood. Understood.

Also uh second B in the current market scenario are you witnessing any maybe pricing pressures from organized

competitors or maybe uh less unorganized players and how is the company balancing competitive pricing uh with margin

protection. Could you shed some light on that? >> So a large part of the business comes

from the fabric business where there are not many branded players and uh I don't think there are any pricing pressures as

such. This is something that uh you know we we stick to what we do. We have a variety of different blends and

different markets that we are in terms of the product in suiting and shirting there is from in suiting for example

from poly viscos to woolen blends in shirting there are poly cotton cotton linen blends. So there are variety of

different uh products and at different price points. So it is just about being able to have the distribution supply

chain efficiencies all of that rather than looking at uh pricing pressures. Understood sir. Understood. Uh that

that's all from my side. Thank you for the opportunity and all the best for the future quarters.

>> Thank you so much. >> Thank you. A reminder to all participants. You may press star N1 to

ask a question. The next question is from the line of Bora from SCS Capital. Please go ahead.

>> Hello. Am I audible? >> Yes, we can hear you. >> Yeah. So the question is the company's

EITA margin has like declined to 13.2%. Which was like 14.1% in Q3 FI25. So like could you clarify the reason which led

to this decline? >> I think I've already mentioned earlier that there are two or three main

reasons. One is the employee cost because of the new labor code that was a hit we had to take as well as some

increase in advertising and this retail business that we have earlier indicated to drop our ITA uh in any case I would

recommend that we don't look at quarteronquarter numbers we have to look at the yearly numbers because of the

seasonal nature of business and in an annual level we indicate a uh and continue to guide with a 14% uh

approximate ITA level and then the retail loss that will reduce that further

Okay. And so how do you decide between the opening large format versus small format stores?

>> You mentioning about Zcode in particular. >> Yeah.

>> So this uh was an experiment that when we started out in Zcode, we wanted to experiment with these two size of

formats. One was a small format which is about 4 to 6,000 and the larger format which was 6 to 8,000 9,000 ft². Uh so in

the initial stage we did both these formats but over the course of this year we have experienced that the larger

format stores are performing better in terms of consumer experience in terms of being able to display our products and

give our offerings in a display it in a better manner. So we are more focused on the larger format shops unless it's a

mall or something else where we are forced to let's select something at about 5,000 ft². So in general our uh

slow strategy is the sizes are more in the on the larger size. So 6 to 8,000 ft² approximately

>> and further like we know the ongoing investment which we have done in retail expansion and brand brand building. So

what EITA margin gain should be in should we consider as sustainable over a medium term once the business reaches a

more normalizing operating environment. >> These are something that we will start sharing a little later on. uh we are

looking at these businesses first in terms of uh opening the stores getting them at an operating efficiency level

even at a small base of stores sourcing for these stores are still a challenge so there are gross margin challenges so

these are all initial struggles that everyone has to go through and we are going through that and hoping to

establish that in a year or so uh we'll be able to get into more numbers maybe in a few quarters from now

>> okay thank you all the best for the future >> thank

Thank you. A reminder to all participants, you may press star N1 to ask a question. The next question is

from the line of Kiti Agraal from SK Associates. Please go ahead. >> Yeah. Uh thank you so much for the

opportunity. Uh I wanted to know that how is your uh in-house design and R&D capa capability helping uh you know

differentiate your fast fashion offerings. So our in-house design uh has already

been in place without fast fashion as well because we are already in the fabric and the apparel business that we

have. We have multiple designers and sampling uh infrastructure that is created in our factories to help us uh

you know predict and you know design for the future. We also have a lot of uh subscriptions to international forecasts

and international uh trends. Kadini our Italian brand and subsidiary also exposes us to a lot of fashion that's

happening in the in the European segment where actually fashion originates and inspirations are drawn from where we

participate in exhibitions we we uh visit other uh you know fashion forward designers in other places in in Europe

through that uh through that business. So there is already a lot of synergy that is there within the business and

the product being fashion forward and the product being uh trendy is something that we feel is a US for the company

because of the background of the company being in the fabric business in the first place.

>> Understood. And um are you seeing any better tractions in South India for good and uh you know deo in North India as

per the strategy? Yeah. So we had a reason to get into uh the particular places for each brand and we wanted to

stick to a cluster successfully. We've been able to stick to that cluster and of course as the year has gone on and

the festive season we are midway through the festive season now in the the wedding season and we've seen great

traction in this last few months and very encouraging response for both the brands.

>> Understood. And um are there any plans for uh strategic partnerships for acquisitions in future?

>> There I mean we don't have anything in at the moment in mind but if we are always open to discussing new ideas at

the moment we are more focused on uh the existing challenges that we've taken in terms of these two new retail brands and

capital allocation also is being done for these two brands. So anything is uh available we are always happy to

consider and look at it. >> Understood. Uh yeah that's it from my side. Thank you so much.

>> Thank you. Thank you. >> Thank you. The next question is from the line of Deepak Partil from Equinis

wealth advisory. Please go ahead. >> Uh am I audible? Yes. Okay. Uh so we start with this year for

retail business around I think 70 to 80 crores. Uh will you share the expected revenue

trajectory for next year for the retail business? uh and the key drivers behind this uh outcome.

>> So we have only given guidance for the end of this year which is about 70 to 80 crores and uh with the current run rate

that you are at we expect to uh be comfortably achieve these numbers for the next year by the next quarter I

think we'll be in a better position to give you guidance. The key uh reason for the the increase in growth will be of

course new store openings as well as the main reason will be the better efficiency of the existing stores that

we've opened. So that is going to help us to get to the next level in the next year.

>> Okay. And uh are you on the line to achieve our guided ITA margin for this year?

uh since the beginning of the year and uh even last year we have always stuck to a guidance of about 14% ebita margin

approximately plus or minus and uh in the end by the end of the year we are confident of reaching that number the

retail business is going to give a loss that is 150 basis points that will reduce from this ITA margin

>> thank you >> thank you >> thank you the next question is from the

line of Vun Mishra from Baba Investments Please go ahead. >> Hi sir. Uh just a followup question. So

like how do we balance our investment between the legacy business and the new age retail brands? Could you help with

that? >> Legacy business is more of an asset light model and doesn't need regular

capital investments. It's more of maintenance capex which we have indicated in the line of 50 60 crores

maybe 50 70 crores in every year. So that is more of a maintenance kind of capex and uh so there is it's not a a

huge number and there is sufficient cash flow and even the retail business is a more uh calculated approach where we

have indicated I think about 35 to 40 crores that we will spend this year. So it's a calibrated approach which we are

confident of for the inflow of funds as well. >> All right. So select expose contributed

to approximately 9% of our revenue. So how do you see to like scope like scale this further?

>> So as I mentioned earlier export environment is very good for India in terms of uh government initiatives for

manufacturing as well as the external environment the treaties that are being signed. So all in all India as a as a

manufacturing hub is is seeing a big philip and that's something that will also help our company. uh export as a

percentage is uh something to difficult to say how much that will grow because even the the rest of the 90% is is

growing but as a overall value this business will grow and is something that we are keenly looking at

>> those are the recent like the European like FT sign so how like can be that we see as beneficial for us like in terms

of increasing our export share >> of course so we uh we are exporting fabrics as as a a semi-finish product

which is going to a garment converter to convert into a final garment which will then get uh used by the brand which is

normally a retailer. So the orders come in from the retailer and they normally task as a fabric supplier. uh so

although it's not a direct export to the brand but these FDAs will increase India as a hub and they want will uh encourage

brands to look at India as a larger manufacturing hub and therefore indirectly we'll get benefit from these

kind of treaties and the export environment helping India uh additionally we are also looking at how

we can expand our garment infrastructure to supply formal trousers rather than just suiting fabrics and that is

something we are working on then we can become a direct supplier but that is some time away and we are working on

that as well. >> Then suppose this uh can we see like you added a margin of 13 13.5 something like

that. So can we see an increase because of these like the like the good beneficiary environment that you have as

of now. >> I think the margin uh is uh for the looking at just a quarterly margin is

not a good indication. Uh we will remain in line with what margin that we have indicated in terms of EV levels for the

whole year. >> All right sir that helps. Thank you a lot. Thank you. Thank you.

>> Thank you ladies and gentlemen. That was the last question for today. I now hand the conference over to Miss Aayoshi

Gupta for closing comments. Over to you ma'am. Thank you. I would like to thank the

management for taking the time out for this conference call today and also thank all the participants. If you have

any queries, please feel free to contact us. We are Musg in Time India Private Limited, Industry Relation Advisor to

CRM Silman Limited. Thank you so much. >> Thank you on behalf of CRM Silk Mills Limited. That concludes this conference.

Thank you for joining us and you may now disconnect your lines. Thank you.