Ruchira Papers Ltd — Call Transcript 2020

Feb 20, 2020

COl.vfMlTTED TO THE EARTH www.ruchirapapers.corn

RPL/CS/BSE/NSE/2019-20/ 20.02.2020

To

The General Manager, Department of Corporate Service, Bombay Stock Exchange Limited, P. J. Tower, Dalal Street, Fort, Mumbai-400 023 Scrip Code: 532785

National Stock Exchange of India Limited, Exchange Plaza, Plot No. C/l G. Block, Bandra Kurla Complex, Bandra (E), Mumbai 400051 Trading Symbol: RUCHlRA EQ

SUB: DISCLOSURE UNDER REGULATION 30 OF SEBI {LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENT> REGULATIONS, 2015.

Dear Sir/Madam,

With reference to our Conference Call held on Thursday, 13th February 2020 in connection with the Un-Audited Financial Results for quarter/nine months ended 31st December 2019, we are pleased to submit the transcript of the same.

This-is for your information, records and action please.

For Ruchira Papers Limited

~/

(Vishav Sethi) Company Secretary. FCS-9300

End: As above

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"Ruchira Papers Limited Q3 FY20 Earnings Conference Call"

February 13, 2020

MANAGEMENT:	MR.JATINDERSINGH–CO-CHAIRMAN&WHOLE
	TIMEDIRECTOR,RUCHIRAPAPERSLIMITED
	MR.VIPINGUPTA–CHIEFFINANCIALOFFICER&
	EXECUTIVEDIRECTOR,RUCHIRAPAPERSLIMITED
MODERATORS:	MR.SONALSRIVASTAVA–KIRINADVISORSPRIVATE
	LIMITED

Moderator: Ladies and gentlemen, good day and welcome to the Q3 FY20 Post Results Analyst Conference Call of Ruchira Papers Limited hosted by Kirin Advisors Private Limited. 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 '*' and then '0' on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Sonal Srivastava from Kirin Advisors. Thank you and over to you sir.

Sonal Srivastava: Thank you, Aisha. Good afternoon everybody. I welcome you all to this conference call of Ruchira Papers Limited Q3 FY20 conference call post results. Today on the call, we have with us Mr. Jatinder Singh – Co-Chairman and Whole-Time Director; Mr. Vipin Gupta – CFO and Executive Director. We will begin the call with welcome address by Jatinder sir and then subsequently the brief about the quarter and the industry will be given by Mr. Vipin Gupta. Subsequently, we can open for Q&A. I hand over the call to Mr. Jatinder Singh sir now. Over to you sir.

Jatinder Singh: Ladies and gentlemen, good afternoon. I welcome you all to the conference call to discuss the financial performance of our company for the quarter and nine months ended 31st December 2019. The company's CFO and Executive Director, Mr. Vipin Gupta is also joining us on this call. Now, Mr. Vipin Gupta will take you through the summary of the financial results.

Vipin Gupta: Thank you, sir. Good afternoon ladies and gentlemen. I will start with brief introduction of Company. Ruchira Papers Limited is engaged in manufacturing of writing printing paper, and Kraft paper. The company was promoted by Mr. Umesh Chander Garg, Mr. Jatinder Singh, and Mr. Subhash Chander Garg. The manufacturing plant is located in Himachal Pradesh.

Ruchira Papers made proactive investments in chemical recovery, effluent treatment and power co-generation plants on the one hand and the consumption of renewable agro-based raw material on the other. Our Tagline "committed to the earth" reflects our commitment.

I hope all of you must have gone through our financial results which are available on BSE, NSE and Company's website. I will take you through the key highlights and financial results for Q3 of FY20.

During Q3 of FY20, company recorded total revenue of Rs. 117.95 crore as compared to Rs. 124.44 crore in the corresponding Q3 of FY 19. EBITDA in Q3 of FY20 was at Rs. 6.81 crore as compared to Rs. 19.31 Crore in Q3 of FY19. Profit after tax stood at Rs. 1.42 crore in this quarter, as compared to Rs. 9.34 crore in Q3 of FY19.

For the quarter under review, the production of Kraft Paper unit was 20379 MT as compared to 19766 MT in Corresponding quarter of FY 19. The production of Writing and Printing paper

unit was 13299 MT as compared to 12537 MT in the corresponding quarter of last year. The total production of the company during Q3 of FY20 was at 33678 MT, registered a growth of 4.26% as compared to 32303 MT in corresponding period during FY19.

In Writing and Printing Paper unit, the average NSR decreased by Rs. 10500/- PMT(approx.) i.e from Rs. 61692/- PMT to Rs. 51178/- PMT in Q3 of FY 20 as compared to Q3 of FY19. The decline in selling price is more than expected and has affected topline and bottom line of the Company adversely. The impact of decrease in NSR of writing and printing paper on the topline of the company remained around Rs. 15 Crore. Further in Q3 of FY 20, the average NSR of Kraft paper declined by Rs. 4175 PMT (approx.) from Rs. 26749/-PMT to Rs. 22571/ on Y-o-Y basis. The impact of decrease in NSR of Kraft Paper on the topline of the company remained around Rs. 8.51 Crore. During the quarter under review, the raw material and fuel prices remained stable.

Sharp decline in NSR affected the overall margins of Company. During Q3 of FY 20, the EBIDTA of Writing & Printing was at Rs. 8.70 Crore (12.10%) as compared to Rs. 15.72 Crore (20.21%) during corresponding quarter and for Kraft Paper EBIDTA was at Rs. (1.89) Crore ( -4.10%) as compare to Rs. 3.59 Crore (7.68%) during corresponding quarter.

For the Nine months period ended December 31, 2019 the total production of the company registered a growth of 9.15% and was at 103084 MT as compared to 94440 MT during corresponding period. Total Income registered a growth of 2.25% and stood at Rs.373.56 crore, as compared to Rs. 365.36 crore during corresponding period. EBITDA stood at Rs. 38.69 crore for the nine months ended 31st December 2019 as compared to Rs. 61.47 crore during corresponding period. PAT was Rs. 26.76 crore as compared to Rs. 29.97 crore during corresponding period of nine months.

We would like to highlight the fact that softness in paper prices was an industrywide phenomenon and almost all companies which have reported financials for the quarter have witnessed sluggishness and reported lower topline and substantial drop in margins on YOY basis.

During our previous concall, we have shared plans for upgradation and modification of Kraft Unit and Writing Printing Paper Unit having capex of Rs. 70 Crore (approx.) in two phases. During first phase, the upgradation and modification in Writing & Printing Paper Unit which comprises modification of existing size press, replacement of power turbine with higher efficiency, upgradation of recovery boiler and ETP upgradation having capex of Rs. 45 Crore (approx.) is being undertaken and it shall be financed in Debt Equity ratio of 1:1. The company has already submitted its proposal with the bankers for the sanction of Term Loan of Rs. 22.00 Crore and balance shall be invested from Internal Accruals. We have already invested Rs. 13 Crore out of our internal accruals towards installation of new film size press and advances for placement of orders. This film size press was commissioned during first week of February

1. The other modifications shall be completed by Q1 of FY 21. The modification of Kraft Paper unit shall be carried out in second phase during FY 21.

All of you will be aware of the tough time that Industry and Economy is passing through. This has also affected our industry in terms of demand and also softening of paper prices. However we are confident that we shall achieve the guidance given of production for FY 2020 as we have already achieved 72% of our targeted production of 143000 MT up to Q3 of FY 20.

Now I would like to leave the floor open for questions that you may have.

Moderator: Thank you. We will now begin the question and answer session. The first question is from the line of Hemant Nahata from Yes Securities. Please go ahead.

Hemant Nahata: Sir, what would be the current NSR for writing and printing and Kraft as well for the ongoing quarter and how do you see this going in the next 6 months, plus sir and the second question would be, what is the status of our Greenfield expansion that we have taken some time back in case if you can throw some light on that as well?

Vipin Gupta: Regarding prices, now we are selling Kraft paper at Rs. 23 and for writing and printing paper, it is approximately Rs. 52.

Hemant Nahata: Almost at the exiting rates of what we have seen in the last quarter right sir, so there is no meaningful recovery in this thing as of now?

Jatinder Singh: No, not yet and as regards with the Greenfield project, we are still having some issues with the land. Plus, I think the market is not very good that we persuade very aggressively we are going slow. It all depends on how the market behaves in future and by the time, we are hopeful that the land issues will also be cleared.

Hemant Nahata: Sir, do you see any recovery in prices at all?

Jatinder Singh: see it has to be, we are about Rs. 10 down on WPP versus last year, so there is no reason, but we never know, there are so many international phenomena which are coming in. It is very difficult for us to project that but I think you are sitting in the capital market in Bombay, you will have a better idea of what could happen in future because we are paper, paper is directly related to economy. At Mumbai, yesterday a banker was talking to me sir what is the problem with the white paper rate sir,I said how many proposals you were doing last year. He said sir I was doing more 12 and what are you doing now? He said I am doing about 6 so you are started using less white paper so what can I do about it. So overall everybody is using less, so unless the overall economy improves, we will have to hold on for the time.

Hemant Nahata: So basically, it is a demand thing that is hurting the industry?

Vipin Gupta:	Obviously,we aremakinga very basic paper, so this is directly demandsupplyand the Kraftpaper isindustrialpaper so that againis demand only.
Moderator:	Thank you. The next question is from the line of Sagar Shah from Alpha Line Wealth. Pleasego ahead.
Sagar Shah:	My first question was regarding our raw material prices, you said our raw material prices werestable throughout the quarter, right?
Vipin Gupta:	Right.
Sagar Shah:	But I calculated your raw material cost actually two year sales, it is coming very high ascompared to last year, is it contradictive to what you are saying basically that is why?
Vipin Gupta:	No, if you take theraw materialprices per tonneof paper,then it will remain the same. Youare terminating its percentage of sales, gradually it will go up.
Sagar Shah:	So because of the drop in NSR,you are saying the rawmaterial cost is coming high?
Vipin Gupta:	Yes.
Sagar Shah:	Butbasically,our raw materialpricessuch as sarkanda and the agriculture residues as well asthe waste paper, all have remained stable?
Vipin Gupta:	Yes.
Sagar Shah:	And the current quarter howis it?
Vipin Gupta:	It is stable, it is same as lastquarter.
Sagar Shah:	My secondquestion sir is regarding our value-added product frontactually, so basically we areseeing almost a slump in the NSR and basically you just guided justafew minutesbackthatthis is due to the demand actually that the NSR has fallen so much for the writing and printingas well as the Kraft paper basically?
Jatinder Singh:	See, the value addition paper that we are making even if that also demand goes downand thatalso affects the NSR. But in the white paper part,we have addedfilmsizepressandwith that,we are hoping thatit hasjust been commissioned in this month only and from Marchwe areintroducing a product, sowe are hopeful that we will get somegainsin that.
Sagar Shah:	That product is a Kraft papersegment,orit is aprinting and writing paper?

Jatinder Singh	That is in Writing and Printingpluswe will haveanoption tomakecopier paper, whitecopier. Earlier, we were onlyin coloured copierand, on the rates,and other things,plus ashopefulthat we will get some benefits with that.
Sagar Shah:	Sobasically,this paper is of the CAPEX that you have done in this quarter is in the printingand writing segment, right?
Vipin Gupta:	Yes, we have added afilmsizepress.
Sagar Shah:	Sobasically,we are introducing a new product in the market, right?
Jatinder Singh:	Yes, weare justmaking theSurface Sizedproduct and the trialruns aregoing on andmay beby next month, it will begoing toall the customers, now itisgoing to ouroldcustomers, sothereis no problemcomes out in themarket.Oncewe are comfortable,then we will giveit tothe total market. Now we will be going moreinto the printingsectionEarlier,we were in thenotebook section, now wewill goto the printingsectionalso.
Sagar Shah:	The next CAPEX that you are planning to do is in which was scheduled in quarter 1 FY21 thatis related to which product? Isit Kraft paper product?
Vipin Gupta:	No, it belongs to writing and printing only.
Sagar Shah:	Only writing and printing?
Jatinder Singh:	Wearereplacing our existingturbine,in the sameboilerwewill be producing more powerandsome improvement in the recovery program wherewe will be getting better efficiency andall thesesmall changes to improve ourbottomline.
Sagar Shah:	Basically,you are bottlenecking your processes,right?
Jatinder Singh:	Yes,I thinkthetime that is goingon so we are just deep. Notbottlenecking,we are just tryingtoimproveour efficiency and then to our bottomline. That is our target today.
Sagar Shah:	But is it going to affect our EBITDA in the long term?
Vipin Gupta:	Yes,of course, when the bottomline will improve, so EBITDA will also improve.
Sagar Shah:	And my third questionis related to, what is the debt that we arecurrentlyholding on ourbalance sheet and the cash that we are holding on the balance sheet?
Vipin Gupta:	At present, theterm loanis around 7.34Cr.
Sagar Shah:	The term loanis for 7 crores you are saying?

Vipin Gupta:	Only 7 crores, yes.
Sagar Shah:	And the short-term working capital loan is 25 crores?
Vipin Gupta:	sanctioned is57Cr, but generally we utilize around 70-75% of that.
Sagar Shah:	And what is the cash that weare holding on the balance sheet?
Vipin Gupta:	Actually,if we are talkingsurplus cash for FY20, then it would be around 25Cr.
Sagar Shah:	The liquidexpense that you are saying?
Vipin Gupta:	Yes.
Sagar Shah:	Andjust one last questionthat the reason such a big downside that we are seeinginthe paperindustry,but if you see the other players actually, one or two are market leaders actually inyour industry, they haven't faced such a slump as yours actually. Their EBITDA margins arewayhigher than youhave achieved in the actually,you have droppedto single digit EBITDAwasaround6% for this quarter, still they are in the 20s actually.
Vipin Gupta:	Actually,you are comparing the writing and printing paper where we have the combination ofwriting andprinting as well asKraft.
Sagar Shah:	Yes, they have a combination of writing and printing and packaging boards actually?
Vipin Gupta:	Yes.
Sagar Shah:	But actually my thing was that in your experience such an old company, Ruchira Papers, youmust have seen such cycles actually, market cycles, so what is your outlook for thenext atleast one ortwo years actually, are we going to revive by this because you are doing thisbusiness for the last more than 25 years, so you are the best person to judge actually whetherthe cycle is going to revive or not, what is the outlook for there at least for the next 1 or 2years? Can you comment on that?
Jatinder Singh:	This cycle is very true. There is no doubt about that. Only we are seeing just improvement inindustryis seen actually,totalindustry as I told you,so how the total industryreact tosituationyou arebetter placed,you understand what the budget has given us, what otherpeoplehavegiven us. As far as we are concerned, we are maintaining our production, we are trying toimprovetheefficienciesand in the meantime we arejust holding onto thethings andtrying todo the efficiency or whatever we have got because thisisa very confusing time, sowhathappened in chinaeveryday there is no goodnews coming all over the world also like Chinawhat happened thereso lot of things are there, everybody is worried. So at this moment if youwant me to say something,I am notaware.

Sagar Shah:	Yeah, but the focus is thatwe think that the company should be onactually to at least de-commoditizeyour products actually, so that the products are not too much exposed to just theNSR part, the focus should be on quality also actually andyour brand strength?
Vipin Gupta:	Thatis why we have added this size presssothat we get a better option and we can make somemore products.
Sagar Shah:	But this ways we are listening for the last one year, so?
Jatinder Singh:	No,size press isthis year only,we have just given it 3-4monthsover, earlier we were justlooking at the new project but when we saw the market and other things, we are not socomfortable, then we decided that we just stick on to the existing only, then we thought ofprovisioningthis. Earlierwe were doing volumeswe wereputting up in Greenfield, now whenwe saw thesituationis not so good, then weheld everything started planning makingdifferentpapers, improvethe quality through the bottomline and thatwe had turbinesimilar which issize press, small investments we are doinghere and thereso thatwe can improve thebottomline, I am not talking about topline much because we don't know why it would happen.Unless this demand increases, demand comes in,we willbeintroduceda new product.Thewholeproduction isnot going to be shiftedovernight or something,it would take a long time.
Moderator:	Thank you.The next question is from the line of Karan Sharma, a Private Investor. Please goahead.
Karan Sharma:	I just wanted to know what is the impact of the imports,are we being hit by the imports ofthese two kinds of paperand if yes, has the China situation changed the market as of now, myfirst question?
Jatinder Singh:	There we reduced 5% on import duty oncoated newsprint.We are not making that paper, sodefinitely when import duty isreduced,itdoes affect the total paper industry. As far asindustrialKraftpaper is concerned,there are no exports, nothing is happening and…
Karan Sharma:	Sorry to intervene, I am not talking about theimportduty, Iam saying per se the importquantity which is coming, are we being hit by Kraft paper being imported in our country fromabroad? Are we being hit or the NSR realizations have gone down purely because thereis lackof demand?
Vipin Gupta:	NSR has gone down because it is lack of demand, there is no import.Kraftpaper has very littleimports, Kraft paper is very little,there may be import of 35BF to 40 BF, which we are notproducing.
Karan Sharma:	And secondly, I see there is a change of inventoryto the tune of 5 crores and 40 lakhs, right, sois this change in inventory because you had produced the goods and there was no demand oryou are anticipating better demand in the next 3 months this coming quarter, Q4?

JatinderSingh:	Basically, we have liquidated our inventory which we are holding during this quarter. In Q3,the quantity of liquidity was around 4.95Crof writing and printing paper and approximately0.45Cr of Kraft paper. The inventory was liquidated which we were holding during Q2.
Moderator:	Thank you. The next question is from the line of Vipul Burman, Individual Investor. Please goahead.
Vipul Burman:	Sir, I wanted to know about the environmental issues. Inthe last conference call you havementioned that we have some environmental issue. Are all this solved or not?
Jatinder Singh:	No, we have no issues withthe environmental issues,though we are making someimprovement in the ETP. Weare furthertryingto make improvement in the ETPand for thatwe areinvesting about 11 crores where we will be usinglesser water and the quantity of waterthat will be coming outthat will also be truebecause we see in the future the environmentalissues are going to be more,people are going to be aware about it. So we are just takingproactive steps.So we are trying to meetthetargets of 20-22 and all now only, this year onlywe meet those targets, so we are just going a little ahead with that.So wehave tied up,wehavethe resources, and we are just trying to improve in our water.
Vipul Burman:	Second question is was thereanyplanned holiday or planned shutdown in last quarter sir?
Vipin Gupta:	No.
Vipul Burman:	The plantwas running smoothly, no?
Vipin Gupta:	Yes, the production isgoing on. As soon as there will be plant shutdown,the production is notindicating.
Vipul Burman:	That means the production has been increased?
Vipin Gupta:	Yes, production has been increased.
Moderator:	Thank you. The next question is from the line of Pragati K from NRC. Please go ahead.
PragatiK:	I didn't catch the base quarter numbers,so if Mr. Gupta can help me withFY19 third quarternumbers for WPP and Kraft paper please, production and realization?
Vipin Gupta:	Quarter 3 of FY19, I will give you the production number of writing and printing paper. It was13,299.437MTand for Kraft papers,it was 20,378.526MT. Total was 33,677.963MT. Nowwe talk about NSR. For writing and printing paper,it wasRs.51,178PMTand for Kraft paperit wasRs. 22,571PMT. Anything else?
PragatiK:	Yes, for the base quarter, please, FY19 third quarter.

Vipin Gupta:	Writing and printingpaper production was 12,537.272MTand Kraft paper 19,766.198 MT
	Company as a whole 32,303.470MTandtheNSR for writing and printing paper wasRs.
	61,692PMTandKraft paper wasRs. 26,749 PMT
PragatiK:	And also can you please share the same numbers for second quarter of last year?
Vipin Gupta:	Production for writing and printing paper was 12,907.099MT, Kraft paper is 22,142.514MT.
	Company asawhole 35,049.613MT. NSR of writing and printing paper wasRs. 53,164PMTand Kraft paper wasRs. 24,007PMT.
PragatiK:	And also you shared the EBITDA for Kraft and WPP, so what is the percentage terms for Kraft
	and WPP, the EBITDA percentage for this quarter?
Vipin Gupta:	For writing and printing paper, it was 12.10% and for Kraft paper, it was negative by 4.10%
Moderator:	Thank you. The next question is from the line of Arun Kejriwal from Kejriwal Research.Please go ahead.
Arun Kejriwal:	One quick question. Ourproduction is as per schedule and somewhat I gather, we don't have
	any inventory on the other hand,youhaveliquidated whatever inventory you had at the start of
	the quarter. Is it fair to assume that there is demand but prices are sluggish, correct me if I amwrong?
JatinderSingh:	Yes, there is at least we have made lot of efforts to liquidate our inventorywhich webelieve
	was a little too higher, so our marketing people have made lot of efforts and we have been in
	thenew areas in Kraft,wherewe were not able to sell earlier,so now we have madethrough
	there Sothe market is as it is and we havejust made additional efforts that we have been able
	tosell it. The marginhas not changed at all, it is that our marketing teameffort thathas helped.
Moderator:	Thank you. The next question is from the line ofTaha Merchant from Equity Master. Please goahead.
Taha Merchant:	We arehearing the increasing reports of ground water depletion especially in the northern parts
	of the country. Sirmy question is,can you elaborate a little bit on our sourcingof water for
	paper production and how sustainable isthe sourcing andin future if new regulationscome
	and that make it difficult to source ground water, how do weforesee this risk?
JatinderSingh:	As far as Ruchira Paper is concerned, our water is coming asunderflow from Markanda river.
	So overthe last30 yearsthat we wererunning ourwater levelsat the same level. So we are not
	facing a major problem,but to take care of the overall stream in the country and the future of
	the country, we are improving our water treatment plant, so that we can reuse more and more
	water, so practicallywiththe same quantity of water we will be in a position to produce more
	paper, so that is our target today and that is whythey are makingthis investment of about11-

11.5 crores towards the ETP and that is just to clean the water so that we can reuse more and more of our water. So in the future also we will increase our production, but we won't need additional water, with the same quantity of water we will be slowly and certainly will be increasing our production. That is our target today.

Taha Merchant: So currently what is the proportion of the water that we are reusing in production?

• Jatinder Singh: No, it is very difficult to quantify because at different positions we are reusing it. So now what we are planning is that water going out of the Effluent treatment plant, that water we are making it for reuse. The colour will be white colour, normal colour that is what we have planned now and only we will have some hardness there, suspended solids will be there so for that also in case we need, in the future we can put some investment and we can totally reuse the water. Ultimately, our target is to totally reuse our water and zero discharge and reusing the water only. That is our long-term target. So water will never be a problem for Ruchira.
• Taha Merchant: By investing, it is possible to reuse 100% of the water that we…

Jatinder Singh: Yes, after these 11 crores, another 25 to 30 crores and you have to reuse 100% water we give.

• Taha Merchant: And the second question is that until FY19, the promoters had given some loans to the company which were paid off obviously during the year, but what was the interest rate on that loan?
• Vipin Gupta: Promoters has introduced the unsecured loan without interest, the interest was not payable to the promoter.
• Jatinder Singh: Whatever promoters ever invested in the company that is with no interest.
• Taha Merchant: So they were interest free loans.
• Jatinder Singh: Promoters, whenever they put in their money for any specific reason, it is always with no interest.
• Moderator: Thank you. The next question is from the line of Dhiral Shah from Phillip Capital. Please go ahead.
• Dhiral Shah: Sir, this demand slowdown you are witnessing only on your region or this is across India?
• Jatinder Singh: The demand is across India; we can go and sell everywhere. In fact, we are selling in Bombay, the white paper is selling all through the country Kraft paper we are selling as far as Ahmedabad and in the Kraft paper, we are taking agro paper, so that is also selling now, all over we are selling but if we freight practice more we were able to sell in North India only, all the papers.

Dhiral Shah:	Sir, then what is leading to the substantial hike in this import of paper, so where is this paper isgoing on then?
Jatinder Singh:	That is probablyhigher quality paper. We are making basic paper.Avery small quantity of
	Kraft paper is being imported and that is35 BF and morewhich I do not see anybody in the
	country can makemay be 1% to 2%are able to make only. We are also able togo up to 32 BF
	only. So thatis a higherBFpaper and white also,it is coated paper and other papers which are
	higher value addition. This is very basicpaperthat we are taking.
Dhiral Shah:	So what kind of demand you are expecting in FY21? Are you seeing any kind of revival?
Jatinder Singh:	We are hoping. Anybody will hope forbetter;I mean this yearhas been there,but we are
	hoping that thingsshould improve now. Ultimately,I thinkeverything is possible now, so now
	we have to start looking at.
Dhiral Shah:	So this will again help us to boost our EBITDA margin to our original level?
Vipin Gupta:	Naturally, we are looking for a betterEBITDA margin. For the Kraft paper we are looking for
	betterEBITDA margins.It isunfortunate that is whyeverything just comes to a standstill now.
Moderator:	Thank you. The next question is from the line of Taha Merchant from Equity Master. Please go
	ahead.
Taha Merchant:	We had 100% excise duty exemption for WPP until FY18. Obviously, we no longer enjoy this,
	so what is going to be the effect of this change on our business and profitability in future?
Jatinder Singh:	That wasup to2017-18 only and that has been adjusted in the priceonly. Actually,now the
	GSTandall those thingshave beenwithdrawn. In FY17, we havereceived dutydrawback
	after GSTcame about1 crore,sonow it all adjusted. It wasnot adjusted inprice over the last
	two years. Nowthere were no issues. That was withdrawn long time ago, that was finished
	long time ago,2017 it was finished, now at 2020 now, it is 2 years down the linethat is over.
Moderator:	Thank you. As there are no further questions, I would now like to hand the conference over to
	the management for closing comments.
JatinderSingh:	Thank you all for participating in the conference calland hopethat we have been able to
	satisfy you regarding the information you all wanted regarding the company. If you have any
	further queries or anyinformationabout the company, please feel free to send us e-mail at our
	following e-mail Ids,cs@ruchirapapers.com,investor@ruchirapapers.com. Thank you. Thankyou everybody.
Moderator:	Thank you. On behalf of Kirin Advisors Private Limited that concludes this conference. Thank
	you for joining us and you may now disconnect your lines.