Transcript of Conference Call with Investors/Analysts [Company Update]

7/24/2019 Transcript of Conference Call with Investors/Analysts [Company Update]

1/17


2/17

MA

Nan

AGEMENT

an Denim Li

Earnings

Febru

: MR. GOVI

ited Q3 FY

onference C

ary 12, 2016

D SHARDA

016 Results

ll

(PRESIDEN

Nandan Den

February

)

m Limited

2, 2016

1


3/17

Moderator:

Mandar

Ka

GovindSha

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se:

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GoodEvenin

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4/17

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5/17

Moderator:

AbhilashaS

GovindSha

Abhilasha

S

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facility isund

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urtherimprove

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6/17

AbhilashaS

Govind

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capacity.Ast

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7/17

Abhilasha

S

Govind

Sha

AbhilashaS

GovindSha

AbhilashaS

GovindSha

Abhilasha

S

GovindSha

AbhilashaS

GovindSha

Abhilasha

S

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8/17

Govind

Sha

Abhilasha

S

GovindSha

Moderator:

ReshaHari

GovindSha

Resha

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9/17

Govind

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ReshaHari

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10/17

Resha

Hari

GovindSha

ReshaHari

GovindSha

ReshaHari

Govind

Sha

ReshaHari

GovindSha

Resha

Hari

GovindSha

Moderator:

:

rda:

:

rda:

:

rda:

:

rda:

:

rda:

thatisourpe

theyprogress

Incase

we

d

we seean in

workingcapit

Working wit

impactthep

brandbyest

intothatbusi

bethemargi

atleast2003

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ouremploye

Not really, t

becausether

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yes,manpow

deployedthe

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yes,since

te

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Whatwould

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betweenRs.9

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crease inour r

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pthen

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ct the working

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ia


11/17

Gaurav

Pun

GovindSha

GauravPun

GovindSha

Gaurav

Pun

GovindSha

GauravPun

GovindSha

GauravPun

Govind

Sha

Gaurav

Pun

Govind

Sha

GauravPun

GovindSha

jabi:

rda:

jabi:

rda:

jabi:

rda:

jabi:

rda:

jabi:

rda:

jabi:

rda:

jabi:

rda:

Sir,Iamfairl

yarncapacity

termsofSpin

In termsofS

7000Rotors.

Soisthisacu

Itistheexpe

Whatwould

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oneachofth

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towards the

Rs.250crores

creatingthe

Soof theCo

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commercial

generallyatt

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openmarket

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say

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players.

newtotheco

ofIthink70to

dles,howmany

pindleswewo

rrentSpindleca

tedspinningca

ethecurrents

ingcapacityisa

PEXplanof610

esegmentsoft

lsharewithyou

spinning which

willgoforthe

rocessingcapa

ton requireme

aining30%wh

arket;Icanso

nendupimpo

ecision depen

heyearweend

ireYarnwhichi

aswell?

%is

meant

for

s.So,yes,weh

anyYarnfrom

entofYarnisc

as of today w

mpany.SoIwo

nnesperdaya

Spindlesdowe

ldbehaving I

pacityoristhis

pacity.

pindlecapacity?

round3000Rot

crores.Sodo

ecompanylike

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is meant for

enimcapacity

ity.

nt Iunderstand

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urceitfromM

rtingbecause7

ing on the pr

dwitharound

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are sourcing

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haveexactly?

thinkclose to

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ehaveabreak

Spindlesand

mber,outofRs

ur CAPEX cons

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icing parity we

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thatisusedfo

sumption,som

arnbutthatis

rDenimsorist

tonnesadaya

lmost 50% of

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February

rstandafewba

singto124ton

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ndlecapacity?

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umption in De

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ourcefromGuj

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sics.Sir,youha

nesperday.So

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croreswillgo

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Rajasthan,Punj

auseitisalway

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esellYarnint

upmanufacturi

ntquantity.

cityisaround

t from the oth

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ve

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to

ng

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nd

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ab

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ut

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ng

0.

er


12/17

Gaurav

Pun

Govind

Sha

Gaurav

Pun

GovindSha

GauravPun

Govind

Sha

Gaurav

Pun

jabi:

rda:

jabi:

rda:

jabi:

rda:

jabi:

Inyouropeni

Q3 numbers

increasedby

quarter,price

December 20

around67%i

Theremark

that remark

compared to

sharesomet

but,yes,that

Sowhat

is

th

policytomini

Anyspikeor

manufacturin

minimum lev

closetothe

can get our

location.We

goingtostart

stableenviro

Sirwhatabo

is your view

manufacture

thepricesof

notbuyYarn

Ithinkthekn

if you really

phasesevery

man,soalot

Yarnisyes,i

fairlypriced l

andtheYarn

Rawmaterial

ngremarkyou

that the cost

300basispoint

shave

fairly

re

14, if you reall

nthecurrentq

asincontextt

was definitely

the correspon

ingthere,com

opportunitywe

ein

house

like

mizetheriskon

nyrallyinthe

g.Sowenorm

elandour loca

arket.Soeven

cotton stock in

always take a

,yes,wemay

mentwe

can

g

tthisChinasit

because Chin

saredumping

Yarnprobably

fromIndia?

owledgethaty

lookat thehist

fourthor

fifth

ofconsolidatio

pactedbecaus

ookingatthep

pricesasofno

priceswouldco

saidaboutthe

of raw materi

s.So if Isee la

ainedin

the

sa

y look at the

arter.Wehave

theQ2FY16n

not with refer

ingquarterev

panytookcerta

couldnotcapit

cottonbecause

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ricesofCotton

llydonotkeep

tionbecomes

ifweplacean

side the plant.

prudent viewd

ndupwitharo

owith

around

o

ationthatwe

a has not be

a lotofyarn in

oucouldsourc

uaresharingis

oryof theText

yearand

this

i

takesplace.

eofthesentim

ricesofCotton.

.

ntinuetobein

Cottonpricesb

l I think that

t inDecember

merange.

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w

umber we wer

marginallydecl

umberswhich

ence to the co

erythinghas im

indecisionswh

alize.

itis

always

ari

isthepassthr

hugeinventory

nadvantageou

rderinthemo

So we are ge

epending on th

und23months

nemonth

or

on

aveinourhan

n buying any

thedomestic

etherawmate

whateverweh

ile industry, in

the

stage

whe

ethinkthecur

ntattachedto

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thecurrentran

Nandan Den

February

ingvolatilean

was about 66

14quarterver

hyhave

we

see

e at around 68

inedourrawm

asfortheSept

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proved. So ide

erewecouldh

sk.So

do

we

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ughwhenitco

ofCottonwith

spropositionb

ningat8Oclo

ographically at

emarketplac

inventory,but

eand

ahalf

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,soanyoutloo

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arkets,soyou

rialcheaper ifC

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ustrypasses th

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expectanymaj

eorprobablya

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the

spike?

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aterialcost,rig

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arter because

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veany

mitigati

mestotheDen

us,keepitab

ecauseweare

kby2Oclock

an advantageo

. If themarket

underthenor

nthinventory.

konthatorw

bly all the ya

haveanyview

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inthemarket,b

rough the simil

erentiatedfrom

fthepricesoft

orts,butthey

orspike inCott

few?

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ur

lly

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at

t?

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as

to

re,

on

im

re

so

e

us

is

al

at

rn

on

to

ut

lar

a

he

re

on


13/17

Govind

Sha

Gaurav

Pun

Govind

Sha

Gaurav

Pun

Govind

Sha

Moderator:

RahulAgar

GovindSha

rda:

jabi:

rda:

jabi:

rda:

al:

rda:

Thisisourpe

marketisbyi

withaveryp

positionthat

transactions

butwedono

Whatarethe

likenotamaj

FortheDeni

levelofindus

the current

Manufacture

Bangladesh a

trend, I think

themajortar

IfItalkabout

sales,howd

peopleacros

Mostlyforth

areno

excep

areusingonl

Thank you.

Investments.

Sir, good to

Denim,Iund

reasoncome

Not really,

around3.5%

ourdiscussio

upintheval

valueadded

thatparticula

pickswhicha

forced to red

rceptionasoft

tselfamajorch

rudentpolicy

wehave.

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iththeindustr

speculateont

majorthreee

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data of the i

sAssociation

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ndbalance 25

apart fromBa

getchoiceforD

ourdistributio

wegoaboutt

differentcities

eTextilecomp

ionto

that

part

thatasaroute

e will take t

Pleasegoahea

see the realiza

rstandthatShi

toyourmindf

ay be you mis

or4%whenit

wesharedwit

echainthatis

segments, it is

rpart;wedon

reinsertedint

uceyourprod

oday,but,yes,

allenge.Sowe

herewesecur

,our

margins

yaverages,fort

herawmaterial

portdestinatio

taloverallreve

ortdestination

reTextileorth

dustry, but la

ndicatesthat

a

goes to as m

gladesh,South

enimmanufact

inExportmar

hat,dowehav

sellingourpro

niestheentire

icularroute.

M

.

he next questi

.

ion improvem

rtingvolumeh

rquarteronq

sed on that p

omestoDenim

hyouthatcom

bywayofthose

slightly technic

tconsidermet

efabric.When

ctionand ther

ettinganyrelia

onotspeculat

eour rawmat

maynot

be

unately,always

prices.

nsforourcom

nuesbutIthink

arethecountr

egarmentingis

st years data

lmost3/4th

of

anyas70 coun

eastAsiaands

rers.

etsorDomesti

eagentsdoing

ucts?

salestakespla

stof

the

comp

on from the li

nt, but bit dis

salsoshiftedt

uarterslowgro

rticular part, R

andtherealiz

panyhasastrat

valueaddeds

l; letme try to

erastheutilizat

wemoveupin

e isalwaysa tr

Nandan Den

February

bleinformation

onthatparta

rialaccording t

comparableon

ithasbeenpo

anybecausee

theymakeupa

ieswhereyou

themajorindu

which I gath

Indianexports

tries,but looki

omeoftheAfr

markets,sod

thatordowe

ethroughthe

aniesacross

the

ne of Rahul A

ppointed on t

Denim,butis

thinDenimvo

ahul. The volu

tionhasimpro

egicthoughtpr

gments.When

sharea techni

ionfactor,itis

thevalueadde

adeoffbetween

m Limited

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fromtheChine

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o theorderbo

those

particul

itiveinourfav

portsareanyw

bout10%?

onothaveahi

stry.Idonotha

red from Den

ofDenim

are

ng to the curre

icancountries

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aveour inhou

agentonly.So

productsegme

garwal from V

e Q3 volume

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lumesespeciall

e has grown

edby8%.Duri

ocess,itismovi

wetalkaboutt

calknowledge

henumberoft

segmentyou

the loss that

2

se

go

ok

lar

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ay

gh

ve

im

to

nt

re

ny

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e

nt

EC

or

fic

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by

ng

ng

he

on

he

re

e


14/17

RahulAgar

GovindSha

Rahul

Agar

GovindSha

RahulAgar

al:

rda:

al:

rda:

al:

incurduetol

overthatpar

demandfort

tobe

close

t

extentyes,t

gone up and

conferencec

atbecoming

geta largers

pursuingthis

Exports seem

domestic sup

realizationde

Exports I thi

differentpar

mix.Wheny

atimebeing

addedprodu

isabusiness

market, but

responding.

distributionn

themarketr

optimisticfor

thereisano

8yearcycle,

thatBush, if

marketandt

because you

wheneverev

last8yearst

Anyinterest

Rightnowwe

You said Rs.

capacities?

owerproductio

icularpart,yes,

heproductort

o50

52,

now

t

evolumeinm

the realization

llsaswell,we

oneof themos

hareofourrev

particularobjec

s to beweak

plies and that

growth

for

the

k there are s

sof theworld.

uhaveagrowi

djustmentbec

tsintothemar

ofthecompany

we cannot be

o we are fle

etworkacross

t

quirement.So

another23m

tgoingUSPres

incidentally,8y

you really turn

hathasbeenth

are from the

ery8yearsat l

ishasbeenthe

eingcapitalize

areintothemi

50 crores gro

nandthebenef

volumeinmet

heutilizationof

eaverage

of

t

tershasreduc

has also gone

onotwantto

tprofitableDe

enuescoming i

tive.

hich youalso

is why steady

next34month

me cascading

Sothere isde

gdemandwit

usewehaveto

ket;wehaveto

togetasizeab

married to tha

ible on that

heglobe.

So

it

wearefeeling

onths.Normall

identElectiont

earsnowforB

thepapersof

etrend inthe i

financial frater

astforthe last

trend.

asofnowore

ddleoftheproj

ss debt. Of th

itthatyougetb

ersisnottheb

thebrand,but

heindustry

is

g

d,butofcours

up because as

berecognizeda

implayersoft

thevalueadd

highlighted, bu

tate commodit

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ex

effect of the sl

initelyan impa

intheDomesti

utilizeourcap

haveabetter

lechunkofthe

idea permane

articular part.

oesnot

take

to

that,yes,expor

, if Ireally loo

eExportmark

arackObamaa

hehistory that

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ity because th

3presidentsw

erythingisinto

ects,sotheyar

at how much

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February

ywayofhigher

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ettingtowards

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t does that me

y typeDenim f

portsbeing

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ntly if the exp

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tsmarketmay

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hohavesurviv

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ould we attri

m Limited

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pick

insertion.

enitcomestot

pickswhichus

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to

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h you in the l

er,wearelooki

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an that increas

abric would ha

kas

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industry

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tcentricbusin

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lyspeaking,jus

gfromtheExp

ort market is n

blessed with t

rus

to

respond

reallynotbev

aldata,whenev

tsupport,itis

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rend in thesto

youtorevalid

ve gathered t

d inthechair

zed.

bute to the n

3

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ss

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rt

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to

ry

er

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re

ck

te

at

or

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15/17

Govind

Sha

RahulAgar

GovindSha

RahulAgar

Moderator:

Resha

Hari

GovindSha

ReshaHari

Govind

Sha

Resha

Hari

Govind

Sha

rda:

al:

rda:

al:

:

rda:

:

rda:

:

rda:

Itiscloseto

Sotheninth

askthe

same

theP&Linter

oristhereso

MaybeRahu

Sure.

Thank you.

Securities.Pl

Howmanym

Itisaround5

Withthepre

probablyyou

butifyoucou

Thevaluead

bywayofth

and in that

definednum

produceyou

facilitiesthey

impacted. So

product met

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adversely,bu

volumemay

Soitwouldb

right?

Yes, asa ma

processingro

s.250crores.

tcasejustwan

question,ifIre

estthatlooksq

eotherwayt

l,Icantakethis

he next quest

asegoahead.

etersofDenim

.4millionmet

iousparticipan

rvolumesmay

ldjustsortofju

itioncanhapp

processingoft

ase volume m

bersof theRP

canproduce.B

alwaysoperat

now dependi

r volume may

ugh the weav

twhenthevalu

otbeimpacted

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nufacturer, we

ute.

tedtoclarifyo

movethat

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uitehighasac

lookatit?

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ion is from th

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rs.

tyoujustspok

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stexplaintous

enintwoways

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y not grow be

.Within that

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be impacted.

ing route, in t

eadditionisha

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letosortofdo

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ething,theea

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howwouldthis

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cause the wea

RPMwhatever

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route is adopte

o if I am taki

hat case the

ppeningthroug

thevalueadditi

inclined to g

Nandan Den

February

lierparticipant

s.250crores

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16/17

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17/17

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Documents

Transcript of Conference Call with Investors/Analysts [Company Update]