Birlanu Ltd — Q4 FY26

Birlanu Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=yZ5qDUuMWtA Published: 14 hours ago

0:01 1 second Ladies and gentlemen, good day and welcome to Biranau Limited's earnings conference call. As a reminder, all 0:09 9 seconds participant lines will be in the listenon mode and there will be an opportunity for you to ask questions after the presentation concludes. Should 0:17 17 seconds you need assistance during the conference call, please signal an operator by pressing star and then zero on your touchdown phone. I now hand the 0:25 25 seconds conference over to Mr. Mitsa from CDR India. Thank you and over to you Mr. Sha. 0:32 32 seconds Thank you Sager. Good afternoon ladies and gentlemen and welcome to Bilanu Limited's Q4 and FI26 earnings conference call for investors and 0:41 41 seconds analysts. Today we have with us Mr. Ax, managing director and CEO of the company and Mr. Aikapary, chief financial 0:49 49 seconds officer. We'll first have Mr. Ax making his opening remarks and he will be followed by Mr. Rajaria who will take 0:56 56 seconds you through to the financial perspectives. 1:00 1 minute Before we begin like to point out that certain statements made in today's call could be forwardlooking in nature and details in these regard are available in 1:08 1 minute, 8 seconds the earnings presentation which has been shared with you earlier. I'd like to invite Mr. T present his views on the performance and strategic imperatives 1:16 1 minute, 16 seconds that lie ahead. Thank you and over to you sir. 1:22 1 minute, 22 seconds Thank you. Um and good afternoon everyone. It's my pleasure to welcome you all on build's quarter 4 and FY26 1:29 1 minute, 29 seconds earnings call. Uh just before we get into numbers um it's it's also important 1:36 1 minute, 36 seconds that we reflect back on the year gone by which in many ways was a landmark year for us. Um 1:45 1 minute, 45 seconds it offered a significant inflection point in our strategic journey. Uh this was the year we completed our transition 1:52 1 minute, 52 seconds from what was known as HIL to Bananu and that brought together a full breadth of our offering across pipes, construction, 2:01 2 minutes, 1 second chemicals, putty, roof, walls and floors under one identity. This transformation reflects our collective ambition to be a 2:08 2 minutes, 8 seconds leading globe global provider of innovative and sustainable home and building solutions. 2:16 2 minutes, 16 seconds Uh another significant highlight for the year was the acquisition of clean codes. 2:22 2 minutes, 22 seconds This was a strategic step defined for designed to strengthen our portfolio in specialtity construction chemicals and high perform high performance coatings. 2:33 2 minutes, 33 seconds And it brought together clean quotes, technical expertise, proven formulation and export capability with our strong brand presence, market reach and institutional relationships. 2:44 2 minutes, 44 seconds The acquisition is a step forward in our commitment to double our portfolio over the next few years and also marked continued progress in reshaping our 2:53 2 minutes, 53 seconds portfolio towards more value added and differentiated offerings for our shareholders. This transaction offers significant long-term value 3:01 3 minutes, 1 second creation through deeper participation in a fast growing high value segment of specialized construction chemicals. 3:10 3 minutes, 10 seconds Let me now move towards the performance for Q4 and I'll talk about the larger picture and then get into the individual segments. FYI26 financially reflected 3:19 3 minutes, 19 seconds both resilience and agility of Vano. The business operated in a challenging environment marked by subdued demand 3:28 3 minutes, 28 seconds conditions, pricing pressures, heightened competitive intensity and uncertain geopolitical situation. 3:36 3 minutes, 36 seconds uh you would recall we started the year and quarter 1 was a difficult one. There were demand related challenges in the in 3:45 3 minutes, 45 seconds the market. There were pricing related challenges in the market and we ended the year when the uh the impact of the 3:53 3 minutes, 53 seconds Middle East war and crisis has been was looming large and that in many ways sums up the external environment for the year. 4:03 4 minutes, 3 seconds Despite these headwinds, we strengthened our market position through deeper market penetration, focused efforts on improving operational 4:11 4 minutes, 11 seconds efficiency and disciplined cost management. I'm happy to say we enter FY27 with a strong momentum on both 4:20 4 minutes, 20 seconds growth and profitability and the evidence of that comes from our performance uh in Q4 for the India 4:29 4 minutes, 29 seconds business. So for the full year our consolidated revenue uh was INR 3730 4:36 4 minutes, 36 seconds Kores with volume growth across most segments. 4:41 4 minutes, 41 seconds uh if we zoom in to quarter 4 the revenue was,0 crores which was which represents a growth of 4:48 4 minutes, 48 seconds 9% over last year and an 18% growth quarter on quarter so compared to 4:54 4 minutes, 54 seconds quarter 3 on standalone basis which is much of the 5:01 5 minutes, 1 second India business now we clogged revenue of 2,427 crores during the year 5:09 5 minutes, 9 seconds the significant milestone or achievement was on iida front where we have grown by 39% to reach an iida of 146 crores. 5:22 5 minutes, 22 seconds Uh much of this was driven by Q4 performance where the standalone revenue was 625 crores growing at about 8% and a 5:32 5 minutes, 32 seconds margin expansion of nearly 400 basis point 380 basis points to be precise. 5:40 5 minutes, 40 seconds This performance was despite the ongoing Middle East conflict that created a challenging operating environment across our businesses and 5:49 5 minutes, 49 seconds segments with volatility in energy and logistics cost impacting both input prices and overall market sentiment. 5:59 5 minutes, 59 seconds Let me now briefly touch upon the segmental performance. 6:03 6 minutes, 3 seconds Uh one standout segment for us in India this year was the wall segment which delivered solid performance consistently through the year. 6:14 6 minutes, 14 seconds Um during Q4 the segment recorded a revenue growth of over 13% and for the full year a 14% growth. 6:23 6 minutes, 23 seconds This was led by robust volume expansion especially in the boards and panel segment. 6:29 6 minutes, 29 seconds Despite continued pressure on realization, the business was able to mitigate impact on margins through disciplined cost management and operational efficiencies. 6:42 6 minutes, 42 seconds Construction chemical uh probably the youngest part of our portfolio is on a strong growth momentum. 6:50 6 minutes, 50 seconds Um the segment including clean ports delivered growth of about 58% yearonear in quarter 4 and 45% for the full year. 7:02 7 minutes, 2 seconds With the addition of clean codes, we have further stren strengthened our product portfolio and enhanced our ability to offer a more comprehensive 7:09 7 minutes, 9 seconds and value added range of solution such as high performance corrosion coatings, 7:15 7 minutes, 15 seconds epoxy and PU flooring, waterproofing and products for repair and rehabilitation. 7:24 7 minutes, 24 seconds This positions us uh and our business for scalable and profitable growth in these in the years ahead. 7:32 7 minutes, 32 seconds In roof segment uh where we are established market leaders, we have 7:39 7 minutes, 39 seconds reinforced our leadership position while maintaining a premium on pricing and profitability relative to the market and competition. 7:49 7 minutes, 49 seconds During Q4, we delivered revenue growth of 8% yearonear and 18% relative to 7:55 7 minutes, 55 seconds quarter 3. This performance represents a strong bounceback from H1 where both demand and pricing conditions were weak. 8:07 8 minutes, 7 seconds The pipe segment witnessed a challenging operating environment throughout the year with demand conditions impacted by 8:14 8 minutes, 14 seconds lower government spending and liquidity challenges. The sharp decline in resin prices which reached multi-year lows led to significant pricing pre pressures. 8:27 8 minutes, 27 seconds This was followed by the month of March where we witnessed a sharp increase nearly 60% in a short span of three to four weeks. 8:36 8 minutes, 36 seconds In this challenging and volatile environment, the performance during Q4 stood out as revenues increased significantly. 8:44 8 minutes, 44 seconds We grew nearly 30% over quarter 3. 8:49 8 minutes, 49 seconds More importantly, the IBIDA margins expanded sharply by about 1,300 basis points year on year. due to sustained 8:57 8 minutes, 57 seconds cost actions at higher realization and also some impact of uh some positive impact of inventory revaluation. 9:10 9 minutes, 10 seconds We are confident that in this segment there is now a strong momentum with us 9:16 9 minutes, 16 seconds and going forward u we will continue to drive on both growth and profitability. 9:25 9 minutes, 25 seconds Parador navigated a tough year marked by weak demand in key European markets, softer pricing and input costed 9:32 9 minutes, 32 seconds inflation. Fular revenues while being steady to dec to a marginal decline in 9:40 9 minutes, 40 seconds euro terms. Overall profitability suffered because of an unfavorable product mix, higher material cost and certain one-off expenses. 9:50 9 minutes, 50 seconds Uh looking forward to FI27, we see clear momentum and growth in margins driven by deeper European retail 9:58 9 minutes, 58 seconds penetration, rising contributions from new markets like the US and targeted pricing moves and the full benefits of 10:06 10 minutes, 6 seconds the cost optimization that was done in FY26. 10:12 10 minutes, 12 seconds Beyond numbers, um there are a few things to look forward to which will fundamentally improve both the growth 10:20 10 minutes, 20 seconds trajectory and the profitability of the portfolio we carry. 10:25 10 minutes, 25 seconds Uh the first one is a program that we ran with BCG 10:31 10 minutes, 31 seconds um focused on some of our key segments which was a comprehensive value enhancement exercise. The idea was to 10:40 10 minutes, 40 seconds identify and implement larger pools of P&L impact opportunities. 10:45 10 minutes, 45 seconds We are already seeing and some of it is visible in quarter 4 results incremental benefits flowing through with the full 10:53 10 minutes, 53 seconds savings set to materialize from FY27 onwards. 10:57 10 minutes, 57 seconds In addition, we have undertaken several internal initiatives across our business to tightly control cost and streamline 11:04 11 minutes, 4 seconds processes, bolstering comparative margins and resilience against external uncert uncertaintities. 11:13 11 minutes, 13 seconds On the investment front, execution remains on track across our key strategic projects. The new board's 11:20 11 minutes, 20 seconds plant we are setting up in Nelor, Andhra Pradesh is advancing well and is on track as far as defined execution 11:28 11 minutes, 28 seconds milestones are concerned. Similarly, the OPVC facility in Patna is now fully commissioned. 11:38 11 minutes, 38 seconds Our innovation engine continues to remain a key differentiator for us, enabling us to consistently introduce value added and differentiated solutions 11:45 11 minutes, 45 seconds across businesses. During FYI 26, we launched several new products across categories such as designer boards, premium blocks, 11:54 11 minutes, 54 seconds uh to name a few. These received encouraging market response and further strengthened our premium portfolio. 12:01 12 minutes, 1 second Building on this momentum, we have an exciting pipeline of innovative and differentiated offerings planned for FY27, which we believe will further strengthen 12:10 12 minutes, 10 seconds our market positioning and support long-term profitable growth. 12:14 12 minutes, 14 seconds As we move into the new financial year, our focus remains firmly on strengthening market leadership, driving 12:21 12 minutes, 21 seconds operational excellence, and delivering sustainable profitability. 12:26 12 minutes, 26 seconds While we remain mindful of the evolving macroeconomic and geopolitical environment, we believe the organization today is more resilient, more agile and 12:36 12 minutes, 36 seconds future ready and well and it's well positioned to create long-term sustainable value for all stakeholders. 12:44 12 minutes, 44 seconds With that, I conclude my opening remarks and I invite AJ to take you through the financial and operational details. AJ, over to you. 12:53 12 minutes, 53 seconds Thank you Axab and good afternoon to everyone for joining this call. I'm happy to take you through the key financial and operational highlights for quarter 4 and for the full year FI26. 13:06 13 minutes, 6 seconds Uh FI26 was a year of transition and strategic progress for Bilanu. The operating environment remained 13:13 13 minutes, 13 seconds challenging throughout the year with continued volatility across key markets, soft pricing in the most categories and 13:21 13 minutes, 21 seconds demand conditions that stayed uneven for a large part of the year. Despite these headwinds, we delivered steady 13:28 13 minutes, 28 seconds operational improvement across most of our businesses supported by disciplined execution, cost optimization initiatives 13:36 13 minutes, 36 seconds and improving operating leverage. I believe our performance needs to be viewed in that broader context. Before I 13:44 13 minutes, 44 seconds begin this segment wise discussion, I would like to highlight that during the year we have during the quarter we have received merger order for Castia with 13:53 13 minutes, 53 seconds Birdanu and accordingly our standalone financials are present are reported on merged financials numbers. 14:02 14 minutes, 2 seconds Let me begin with the headline numbers. 14:05 14 minutes, 5 seconds On a stat on a standalone basis, revenue for quarter 4 grew by 8% yearonear to 14:12 14 minutes, 12 seconds rupees 625 cr supported by healthy volume growth across most of the segments. Ebida margins improved by 14:19 14 minutes, 19 seconds nearly 380 basis point during the quarter added by stronger operating leverage. the early benefits of of our 14:27 14 minutes, 27 seconds cost optimization initiatives and dividend re issued from clean course of rupes 5 cr for the full year 26 finance 14:36 14 minutes, 36 seconds standalone financial revenue grew by 2% to rups 2427 cr while IDA increased by 39% to rups 14:46 14 minutes, 46 seconds 146 cr supported by improved operational efficiencies dividend uh received from king codes rups 22 cr and profit on sale of assets rupees 7 cr. 14:58 14 minutes, 58 seconds Importantly, most business delivered healthy volume growth despite pricing headwinds during the year. The only exception was pipes were walleted in PVC 15:07 15 minutes, 7 seconds raising pipes and muted government spending created a relatively difficult operating environment. 15:14 15 minutes, 14 seconds At the consolidated level, revenue for quarter 4 grew by 9% yearon year to rupees 1,0 cr for the full year. 15:23 15 minutes, 23 seconds Consolidated revenue stood at rupees 3,730 K reflecting a growth of 3% over last year. 15:32 15 minutes, 32 seconds Let me now take you through the segment wise performance. Starting with rupes the business reported revenue growth of 15:38 15 minutes, 38 seconds 8% during the quarter 4 with revenue standing at rups 275 cr. For the full 15:46 15 minutes, 46 seconds year, revenue remained broadly stable at rupes 1,139 cr despite a relatively weaker first 15:53 15 minutes, 53 seconds half. The business continued to maintain his market leadership position and pricing premium throughout the year. 16:00 16 minutes Despite sustained pricing pressure, margins remained largely stable, reflecting the continued benefits of of 16:07 16 minutes, 7 seconds our cost optimization initiatives and operational disciplines. 16:11 16 minutes, 11 seconds Involves both the quarter and the fulyear performance were particularly encouraging. Revenue grew by 14% during 16:18 16 minutes, 18 seconds the quarter to 14 161 K whereas fyear revenue skewed at 610 K reflecting a strong strong growth of 13%. 16:28 16 minutes, 28 seconds This performance was primarily driven by panels and boards segment where uh which delivered growth in the range of 20 to 16:36 16 minutes, 36 seconds 25% during the year. The growth reflects stronger execution, healthy order pipeline and improved utilization level 16:45 16 minutes, 45 seconds at Chennai new line. Overall, the segment continues to demonstrate a strong and consistent growth trajectory 16:52 16 minutes, 52 seconds which gives us confidence in it in its long-term potential. 16:57 16 minutes, 57 seconds Construction chemicals was one of the fastest growing business in our portfolio during the year. Revenue grew 17:02 17 minutes, 2 seconds by 58% during quarter 4 to rupees 37 cr while fullear revenue increased by 45% 17:10 17 minutes, 10 seconds to rupees 117 cr. I am pleased to highlight that we crossed our first milestone of rupees 100 cr revenue in 17:18 17 minutes, 18 seconds this segment during the year. The acquisition of clean quotes marks our entry into the quoting segment further strengthening our product portfolio 17:26 17 minutes, 26 seconds while also enabling premiumization opportunities and healthier margins. The integration process is progressing well 17:34 17 minutes, 34 seconds and the segment enters FI27 from a significantly stronger position than where it started the year. In pipes, 17:42 17 minutes, 42 seconds revenue for quarter 4 grew by 4% to rupees 147 cr. However, at the fullear level, revenue stood at 495 cr 17:50 17 minutes, 50 seconds reflecting a decline of 8% while volumes remained broadly flat. This decline was primarily due to multi-year low PVC raising prices during the year. 18:00 18 minutes Importantly, margins improved sharply during quarter four by nearly 1,300 basis points mainly due to steep price 18:07 18 minutes, 7 seconds in the steep price increase in the resin prices in the month of March due to Middle East tensions while fully year 18:15 18 minutes, 15 seconds margins improved by 280 basis point. We expect prices to stabilize over the coming months and anticipate a stronger 18:22 18 minutes, 22 seconds recovery in FY27 supported by increased government spending and infrastructure demand. 18:29 18 minutes, 29 seconds Revenue declined by 9% year on year in terms of in in parador revenue declined by 9% 18:37 18 minutes, 37 seconds yearonear in euro terms during the quarter and 7% for the full year with the slowdown primarily concentrated in 18:45 18 minutes, 45 seconds the second half amid intensified competition and geopolitical uncertaintities across European markets. 18:52 18 minutes, 52 seconds During the quarter the business reported an operating loss of rupees 35 cr which includes a one-time provision of rupees 19:02 19 minutes, 2 seconds 19 cr several corrective initiatives have already been implemented to improve operational performance and we expect a gradual recovery through FI27. 19:13 19 minutes, 13 seconds I would also like to draw your attention on provisions created for diminition in the equity investment in Biranu 19:20 19 minutes, 20 seconds International GMBBH amounting to rupees 74 K which has been reported under except exceptional items in the 19:28 19 minutes, 28 seconds standalone financial statements for the quarter. This is strongly reflecting our investment value in line with current performance of parador. 19:36 19 minutes, 36 seconds Additionally during the year we monetize certain non-core assets resulting in a gain of rupees 47 cr. Excluding these 19:44 19 minutes, 44 seconds accounting adjustments the underlying operational performance reflects improving profitability trends and stronger cost discipline across the portfolio. 19:53 19 minutes, 53 seconds Turning to the balance sheet maintaining financial discipline remained a key focus area throughout the year. Even as we continued to invest for growth during 20:01 20 minutes, 1 second the year, our debt stood at rupees 79 cr at the beginning of the year increased 20:08 20 minutes, 8 seconds to 929 cr as on December primarily primarily on account of investment uh in 20:16 20 minutes, 16 seconds clean course acquisition as well as ongoing expansions in OPVC and new board plant in Andhra Pradesh. I'm pleased to 20:24 20 minutes, 24 seconds note that through focus working capital management and tighter tighter operational controls during the second half we were able to reduce borrowings 20:33 20 minutes, 33 seconds uh and it stands at rupees 851 cr at the end of the financial year. The direction of travel on debt reduction is 20:42 20 minutes, 42 seconds encouraging and we remain committed to maintaining a prudent and disciplined capital structure in line with our internal plans. The foundation we built 20:51 20 minutes, 51 seconds through FI26 is significantly stronger than where we started the year. We enter FI27 with improved operational momentum, 20:59 20 minutes, 59 seconds a more integrated business structure, and greater confidence in our strategic direction. We remain fully committed to 21:07 21 minutes, 7 seconds translating this progress into stronger financial performance and long-term value creation for all our stakeholders. 21:14 21 minutes, 14 seconds With that, I conclude my remarks and hand the call back to moderator to open the floor for questions. Thank you. 21:21 21 minutes, 21 seconds Thank you very much. We will now begin with the question and answer session. 21:26 21 minutes, 26 seconds Anyone who wishes to ask a question may press star and then one on your touchstone phone. If you wish to remove yourself from the question queue, you 21:34 21 minutes, 34 seconds may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will 21:43 21 minutes, 43 seconds wait for a moment while the question to assembles. Again to register for a question, please press star and Y. 21:51 21 minutes, 51 seconds Your first question comes from the line of Nin S. Dharmawat from Aram Capital. Please go ahead. 21:58 21 minutes, 58 seconds Yeah, thank you for the opportunity. 22:04 22 minutes, 4 seconds Hello you. Thank you for for d uh your voice is not clear please. 22:13 22 minutes, 13 seconds Yeah just give me a minute. Uh am I audible now? 22:24 22 minutes, 24 seconds Yes. 22:26 22 minutes, 26 seconds Okay. Okay. So my you know only question and few observation is uh we have uh you know now taken an impairment in the 22:34 22 minutes, 34 seconds European subsidiary. So in a way it is a it is good that this is the first recognition of the problem in the subsidiary. We have already given long 22:42 22 minutes, 42 seconds enough rope of almost 8 years to this subsidiary. Has the time not come to take a call on the subsidiary? Last year 22:50 22 minutes, 50 seconds we mentioned that this year we'll turn it around and make it profitable. Now some other issues have come up which affected the subsidiary materially but 22:59 22 minutes, 59 seconds not our Indian operations which did really well. So would it not be prudent to recognize the problem and take a final corrective measure in this uh part 23:07 23 minutes, 7 seconds of the business? Our management team has extensive experience in business and consultancy and well qualified. So 23:14 23 minutes, 14 seconds without being biased would you uh what would you have uh suggested to someone else going through the same situation? 23:25 23 minutes, 25 seconds Um since we are talking in um in indirect terms uh what we would have recommended to any 23:34 23 minutes, 34 seconds any party as consultants or external advisers we are following all of those in the case of parador and many of them 23:42 23 minutes, 42 seconds are at play some are visible some are not visible for you uh but we 23:49 23 minutes, 49 seconds it's I think the only element I will say is um it's going it's going through a difficult business cycle. We all 23:57 23 minutes, 57 seconds recognize that there is no lack of acknowledgement on that. In a business cycle like this, whatever 24:05 24 minutes, 5 seconds actions have to be taken are also at play. So I want to assure you that um none of there is no loss of objectivity in that regard. 24:19 24 minutes, 19 seconds Yeah, I understand that and I appreciate the fact that we are on top of the things but if the things are not working like you know 8 years is not a small 24:27 24 minutes, 27 seconds period we are given long enough time for this so maybe sometime we'll have to take a final call uh to stop loss uh we 24:35 24 minutes, 35 seconds are continuously making losses I'm sure that we are in hope wherein we'll turn it around I'm sure that uh someday will come but it should not be too late for 24:44 24 minutes, 44 seconds us is my only you know comment on uh understand and uh appreciate the 24:51 24 minutes, 51 seconds council there. The only addition I will make is in the seat that I sit, we act 24:58 24 minutes, 58 seconds and react more than just on hope. We react on data and lead indicators and what the order books and pipelines are. 25:09 25 minutes, 9 seconds So uh rest assured that every part of this is being looked at objectively and 25:16 25 minutes, 16 seconds uh all the advice that we could give as an external adviser in this situation is at play here. 25:26 25 minutes, 26 seconds Okay, I appreciate this. Uh I wish you best. Thank you so much Nin. 25:34 25 minutes, 34 seconds Thank you. 25:36 25 minutes, 36 seconds Your next question comes from the line of Weber Paratya from Honesty and Integrity Investment. Please go ahead. 25:44 25 minutes, 44 seconds Yeah. Uh hi. Can you hear me? Yeah. Hi. Yes sir. 25:50 25 minutes, 50 seconds Yeah. Hi. Yeah. Thank you a lot for uh providing the opportunity. So I just uh wanted to uh understand the prospects on 25:57 25 minutes, 57 seconds the roofing roofing part of the business uh both on the demand side and the cost side. So on the demand side if you can 26:04 26 minutes, 4 seconds help us understand uh where our product stand is uh uh viz steel roofing because 26:11 26 minutes, 11 seconds there you know in in galvanized process there's uh there's a usage of LPG and we 26:18 26 minutes, 18 seconds hear the reports of some disturbance of steel roofing availability in the market. Uh so great if you can uh help us understand uh the impact of this 26:27 26 minutes, 27 seconds phenomena on demand uh and connected to this is the outlook on demand and secondly uh on the cost side of the 26:34 26 minutes, 34 seconds roofing business how rupee depreciation is impacting the cost and how do you see the margins going forward in the roofing business. If you can help us understand these phenomena that would be helpful. 26:45 26 minutes, 45 seconds Yeah. U so from a demand perspective uh what we are witnessing and I can say 26:52 26 minutes, 52 seconds that on the evidence of the last two to 3 months is there is good uh momentum on 26:59 26 minutes, 59 seconds the demand front u certainly better than what it was last year 27:06 27 minutes, 6 seconds um and last couple of years honestly um what are the factors driving it we believe there is some underlying 27:14 27 minutes, 14 seconds resilience in the rural economy which is helping. So the demand there seems to be helping at a macro level. Um 27:23 27 minutes, 23 seconds you are right that at this moment the price differential between our roofing products and the substitute which is 27:31 27 minutes, 31 seconds steel roofing products is is on the higher side given the rally that has happened in steel prices and metal 27:40 27 minutes, 40 seconds prices in general. and that gives us some pricing headroom and also some substitution opportunity. So that is 27:47 27 minutes, 47 seconds also playing out. Um so I think those two factors are are helping what looks like a promising 27:56 27 minutes, 56 seconds demand scenario. Uh on the input cost etc and rupee dollar uh and rupee 28:03 28 minutes, 3 seconds depreciation is a factor there. Yes, it's it's playing out. It is impacting us because a big part of our raw 28:11 28 minutes, 11 seconds material cost base is imported and to that extent there is exposure. There is not just on rupee depreciation but also 28:20 28 minutes, 20 seconds the impact of freight increases that will play out and also given it is a mind product. Increase in cost of 28:28 28 minutes, 28 seconds petroleum products and energy prices also have a bearing on the principal um price of the raw material that we get 28:37 28 minutes, 37 seconds in. So there is pressure on the input sides from fiber perspective and also from cement which is a big big raw 28:45 28 minutes, 45 seconds material for us. So there is some inflationary pressure on the um input cost as well. We are confident that at 28:55 28 minutes, 55 seconds least some part of this will be offset from price corrections in the market hopefully and it's too early in the 29:03 29 minutes, 3 seconds season to make a commitment around it but hopefully it should mean some better 29:09 29 minutes, 9 seconds times as far as margins are concerned right but are you um I understand I mean 29:17 29 minutes, 17 seconds you've given a good good brief around it but are you hearing uh from in the market that is there a shortage of steel 29:23 29 minutes, 23 seconds roofing uh or uh or you know the steel industry is somehow managing as of now and availability is not an issue on the 29:31 29 minutes, 31 seconds steel uh roofing alternative products that competes with our product. 29:36 29 minutes, 36 seconds I I won't be able to comment on the availability part of that but I certainly hear and there is enough evidence that on the pricing part there 29:44 29 minutes, 44 seconds is certainly a lot of concerns Yeah. Hello. 29:56 29 minutes, 56 seconds Yes. Did you Did you hear my response? 30:00 30 minutes Yeah. Sorry, I I missed the last uh uh last sentence of your question. If you can repeat that, that would be helpful. 30:08 30 minutes, 8 seconds I said I won't be able to comment on availability concerns but we certainly know that there are concerns around 30:16 30 minutes, 16 seconds pricing of steel roofing and steel uh products for that segment. 30:22 30 minutes, 22 seconds Okay, got it. Understood. Uh yeah, that's it for my ses. Thank you. Thanks. Thank you so much. 30:30 30 minutes, 30 seconds Thank you. Your next question comes from the line of Parshit Gupta from Fair Value Capital. Please go ahead. 30:37 30 minutes, 37 seconds Thank you very much for the opportunity. I hope I'm audible. Yes, Parikit, please go ahead. 30:46 30 minutes, 46 seconds All right. Uh, so my first few questions on the pipes and construction chemical segment. 30:52 30 minutes, 52 seconds Can you please help me with a with a breakup of the construction chemicals segment? You mentioned that there is a 31:00 31 minutes 58% growth year on year in Q4. Can you tell me how much contribution is there 31:07 31 minutes, 7 seconds from clean codes and what is what is the growth number x of clean codes please? 31:15 31 minutes, 15 seconds Yeah. So um without clean course the growth is 25% for full year. 31:24 31 minutes, 24 seconds Um with clean codes is 40 with clone clean codes it is 58% clean course number for the for the uh 4 and a 31:31 31 minutes, 31 seconds half months is 20 cr is for quarter four no no full year 58% is for 31:39 31 minutes, 39 seconds quarter four and 45% is for full year correct yes okay 31:49 31 minutes, 49 seconds so so if I understand for the quarter clean Yes, please go ahead. 32:00 32 minutes Uh, no I please sir uh you continue with the numbers. Let me ask my follow-up questions after that. 32:10 32 minutes, 10 seconds Please go ahead. 32:12 32 minutes, 12 seconds Yeah. Uh the your other question is what is the clean course number? It is 20 K for 4 and a half months from the date it 32:21 32 minutes, 21 seconds acquired and X of this you're saying the growth for just quarter 4 is 25% just for construction chemicals right? 32:35 32 minutes, 35 seconds No we are saying overall including clean codes for the full year the growth is about 45%. 32:43 32 minutes, 43 seconds And for quarter 4 the growth is 58%. 32:48 32 minutes, 48 seconds Okay. This is including clean codes. If you knock off clean codes then at a fullear basis that number is 25%. 32:58 32 minutes, 58 seconds Understood. Uh my second question on the pipe segment. Can you also help me 33:05 33 minutes, 5 seconds understand the breakup of the revenue of the pipe segment? How much was it from the CPVC uh I mean the high margin 33:15 33 minutes, 15 seconds segments and how much of it was with the you know OPVC and uh relatively mass segment please. 33:23 33 minutes, 23 seconds So OPVC is not uh a mass segment. OPVC is actually more premiumized. 33:32 33 minutes, 32 seconds Yes. 33:33 33 minutes, 33 seconds So roughly the split for us in our product portfolio we we run at about 39 to 40% at CPVC levels and the and the 33:43 33 minutes, 43 seconds rest is UPVC, SWR, pressure pipes and so on and so forth. 33:49 33 minutes, 49 seconds So you can think of a 40 60 split. 33:55 33 minutes, 55 seconds Understood? Uh now in terms of the TGTR removing the anti-dumping duty 34:02 34 minutes, 2 seconds until the end of June, is there any I'm sure that the industry lobby is rooting for not extending this removal of 34:11 34 minutes, 11 seconds anti-dumping duty, but can you tell me some more detail of what how the discussions are happening so far? 34:21 34 minutes, 21 seconds I would not be in a position to comment on that. I'm not aware of any industry lobby talking about this. So this is 34:28 34 minutes, 28 seconds this best of our knowledge was government's proactive action given the volatility 34:37 34 minutes, 37 seconds that was experienced in the market and the impact it was creating in the consuming uh pockets. 34:46 34 minutes, 46 seconds as as we as I made a remark in my opening uh comment, we witnessed a month of March where in three 3 weeks the 34:56 34 minutes, 56 seconds prices went up by about 60%. And then in the month of April, they again climbed 35:02 35 minutes, 2 seconds back by about 25 to 30%. That kind of volatility is is not good news for the industry overall. There might be 35:11 35 minutes, 11 seconds short-term profits but it creates a slightly longerterm uncertaintity which is where this step is welcome and and that's as far as I can comment on it. 35:25 35 minutes, 25 seconds Okay. But but the removal was before this entire situation in the Middle East that was in early March. 35:35 35 minutes, 35 seconds No the sorry you are talking about the import duty right? 35:39 35 minutes, 39 seconds Correct. Yes, that there were so there was uh the important if I remember correctly that that came 35:46 35 minutes, 46 seconds in in April not in March that was almost 3 4 weeks after all of this had happened is when it came. So sometime in April 35:54 35 minutes, 54 seconds first 10 days of April if I remember correctly. 35:59 35 minutes, 59 seconds Okay I I will recheck my data here on then. 36:04 36 minutes, 4 seconds And uh can you please also help me understand the current demand environment? You mentioned in your opening remarks that it has been weak 36:11 36 minutes, 11 seconds through FI26. We have observed that. But how does it look now? If you can shed some light on that please. 36:20 36 minutes, 20 seconds See you would have seen across most companies uh Q4 was better. 36:27 36 minutes, 27 seconds It it is how we experienced it. It was better both on volume and revenue and also on profitability. In fact, more so on profitability. 36:38 36 minutes, 38 seconds Uh we believe we have done better than most of our peers on the improvement side. As far as profitability is 36:45 36 minutes, 45 seconds concerned, as we enter the new financial year, given this whole volatile resin price 36:53 36 minutes, 53 seconds environment, um it's a hard one to predict. The fundamentals 37:00 37 minutes still remain intact, but sharp increases in prices or sharp 37:07 37 minutes, 7 seconds decrease in prices drives um abnormal behavior by channel and 37:15 37 minutes, 15 seconds stocking happens and so on or detocking happens in a adverse situation. Um but the fundamental macro demand scenario still remains impact intact. 37:28 37 minutes, 28 seconds The amount of construction and hence the consequence of that on the demand for pipes still remains where it was. 37:38 37 minutes, 38 seconds Okay. Understood. This is helpful. What we also see as a positive if I may add the last two years were extremely soft 37:48 37 minutes, 48 seconds as far as government spending in uh infrastructure on water and pipeline uh 37:54 37 minutes, 54 seconds NJJM etc. From Q4 we are witnessing some green shoots of recovery on that front. 38:05 38 minutes, 5 seconds It is also accompanied by a fresh commitment by the government in the recent budget of uh the allocation for JJM and so on. 38:16 38 minutes, 16 seconds Having said that those allocations were made in the last year and the year before that as well but only a small amount of that was actually realized. 38:25 38 minutes, 25 seconds But the fact that the program has been rebooted and we witness some positive movement on ground 38:34 38 minutes, 34 seconds is again a positive tailwind that we will take for the industry. 38:41 38 minutes, 41 seconds Okay, this is very helpful. Uh if I may a couple of questions on parador please. 38:48 38 minutes, 48 seconds Uh I do understand the severance package impacting the operating income. What were the other challenges in Q4? 39:00 39 minutes You mentioned the high input prices in a software demand environment. I do get it. But from an operational perspective, were there other also uh challenges 39:08 39 minutes, 8 seconds which resulted to such a lower negative margin? 39:15 39 minutes, 15 seconds No. So I think u operationally there were no other challenges uh given this whole war 39:22 39 minutes, 22 seconds situation hit in early part of March and if you see traditionally March and quarter 4 is a is almost a high season 39:30 39 minutes, 30 seconds for us. There was a lot there were a lot of orders which have been deferred. 39:36 39 minutes, 36 seconds While those orders still remain in our order book they have been deferred and hence there was a negative impact on 39:44 39 minutes, 44 seconds revenue. So a large part apart from those oneoff items the reason for profitability being low is essentially 39:53 39 minutes, 53 seconds the drop in revenue and volumes. So no other factor uh or any major factor to report here. 40:02 40 minutes, 2 seconds Understood. And in terms of the India expansion of parador from basic research I could find out certain links which 40:11 40 minutes, 11 seconds talk about the pricing and the offerings online but can you also help about how you're positioning this product uh in 40:19 40 minutes, 19 seconds terms of both commercial as well as uh you know B2C offering to the of the product. 40:28 40 minutes, 28 seconds Yeah. So it's it's still positioned at the premium end of the segment. Uh it's a made in Germany product. Um and that's the proposition that we are building. 40:39 40 minutes, 39 seconds The brand is centered around quality, aesthetics. 40:43 40 minutes, 43 seconds Uh and that's the same promise that we are making uh to consumers here in India. Over the last two three years 40:50 40 minutes, 50 seconds there sorry over the last 12 months there is now a sales team which is dedicated for this and a lot of 40:57 40 minutes, 57 seconds groundwork has happened in that. Uh so we we are now 41:04 41 minutes, 4 seconds uh building a pipeline of orders both on the commercial side and also equally building a retail footprint. Having said that, we recognize that much of the 41:13 41 minutes, 13 seconds demand will be anchored around the larger cities and metros and that's where the market focus is. So we are not trying to be everywhere. 41:22 41 minutes, 22 seconds Uh the one challenge that we face u which also is in some sense uh the 41:29 41 minutes, 29 seconds landed cost of those products in India is is something that uh remains a concern. So, so pricing will be a 41:38 41 minutes, 38 seconds critical factor and India you are aware is a very price sensitive market. So, so that's one challenge that we manage 41:47 41 minutes, 47 seconds on a day-to-day level but the rest of the fundamentals and positioning is as I described. 41:54 41 minutes, 54 seconds I understand. Uh in terms of comparison maybe with existing players for example Wellspan living I looked at their 42:04 42 minutes, 4 seconds catalog uh their offerings are of the similar specifications. I cannot comment on the relative quality of the two 42:11 42 minutes, 11 seconds products but the pricing is at somewhat discount to Parador. Uh in such an 42:18 42 minutes, 18 seconds environment when you have to gain market share for existing players. While I understand the aspect of the freight 42:26 42 minutes, 26 seconds costs also being inbuilt in your uh product, how do you think you will be able to you know sustain growth or gain 42:35 42 minutes, 35 seconds growth or sustain market share when the product is already priced at a premium? 42:40 42 minutes, 40 seconds Uh can you tell me a little bit about that please? 42:46 42 minutes, 46 seconds I won't comment on a specific competitor or market player. uh not right on my part to do that but I will just take an analogy. 42:56 42 minutes, 56 seconds Um in the automotive world you will have a marauti um 43:03 43 minutes, 3 seconds and also a Mercedes playing in the market. They will have different positioning. They will have different price points and different offerings in 43:10 43 minutes, 10 seconds the market. And the market thankfully is large enough to absorb different types 43:17 43 minutes, 17 seconds of proposition and for each of these companies to make a successful venture out of it. 43:27 43 minutes, 27 seconds I understand. I mean uh thank you very much for answering my questions. I will get back in the queue for the for any follow-ups and good luck for the current quarter. 43:37 43 minutes, 37 seconds Thank you. Thank you. 43:43 43 minutes, 43 seconds The next question comes from the line of Anub Goyel from Cosma Ventures. Please go ahead. 43:49 43 minutes, 49 seconds Yeah. Hi sir, thank you for this opportunity. So I have a bunch of questions. Hi Anab. So for parador from 43:57 43 minutes, 57 seconds what I understand is uh in India the engagement with architects and contractors is a very longdated tough 44:05 44 minutes, 5 seconds process and then we have imports coming from China and Vietnam. So the turnaround for the next two years would 44:12 44 minutes, 12 seconds largely come from a turnaround uh from our European sales. Correct. 44:20 44 minutes, 20 seconds That is correct. See compared to the scale of our European business and the international business, India is just 44:29 44 minutes, 29 seconds about starting up. So the for fortunes of Paridor is not anchored only on the India business. 44:40 44 minutes, 40 seconds So the European outlook you would say is is uh continuing to stay where it was or or we can see any signs of improvement there. 44:52 44 minutes, 52 seconds uh you you should look at some improvement and judge us on that and not 44:59 44 minutes, 59 seconds because the market is bouncing back but there are certain moves that we are making. Uh one of them is 45:07 45 minutes, 7 seconds to reboot our whole retail uh presence. So you are aware that we 45:15 45 minutes, 15 seconds are very strong on the DIY side. we have some retail presence and commercial is 45:21 45 minutes, 21 seconds something that we were starting up now um especially in our central core central European market in the last 6 to 45:30 45 minutes, 30 seconds 12 months there's been a reboot of both the teams and also differentiated product offerings through these channels 45:39 45 minutes, 39 seconds which give us confidence that this year there will be an uptick in these markets coming in from there um and I'm not 45:48 45 minutes, 48 seconds talking just bas I'm talking on basis of what the needs look like what the initial traction has been and so on. So 45:55 45 minutes, 55 seconds that is one significant area where you should see uptick. 46:01 46 minutes, 1 second Second on the engineered wood side in Europe we are going further on the premium end of the segment. What has 46:09 46 minutes, 9 seconds happened in that market is that the mid end of the market has been affected by cheaper imports from places like China and so on and hence it was important for 46:18 46 minutes, 18 seconds us to expand our range on the premier men. That work has happened. Um we launched that whole collection back in 46:26 46 minutes, 26 seconds February and we are now rolling with that. So that's the second area which is expected to give us an uptick in the 46:34 46 minutes, 34 seconds core central European uptake uh theater independent of any market bounce back. 46:40 46 minutes, 40 seconds So all of this is assuming that the external environment remains where it is 46:47 46 minutes, 47 seconds helpful sir. Got it. So can I get a break up for the wall sales this 610 46:54 46 minutes, 54 seconds kores uh split into AC blocks panels and boards for this year and last year? 47:03 47 minutes, 3 seconds So roughly it will be 60 30 90 uh 60 30 uh 60 25 and 15%. 47:12 47 minutes, 12 seconds 60 would be blocks and 25% would be sandals. Yes. 47:19 47 minutes, 19 seconds Okay. And so for both end panels, what is our current capacity utilization and where can sales uh go towards in the next 2 three years? 47:31 47 minutes, 31 seconds Actually uh in both those segments we in fact even in blocks we are chock progue as far as capacity utilization is 47:40 47 minutes, 40 seconds concerned and hence uh the increase in sales or production will come from two things. There are 47:50 47 minutes, 50 seconds some brownfield expansions we are doing uh which will come on stream within this financial year um hopefully by the start 47:59 47 minutes, 59 seconds or sometime in Q3. So that will give us an immediate fill on what we are able to sell. The second thing is u the new 48:09 48 minutes, 9 seconds project that we are green field project on boards that we are putting up in Nelor will give us additional capacity 48:18 48 minutes, 18 seconds u and that is also designed to make products which are value added. So we 48:25 48 minutes, 25 seconds are looking at HD boards uh designer boards and so on. Uh so that's in this 48:32 48 minutes, 32 seconds financial year those are two big areas which will add capacity and production uh capacity for both production and sales. 48:43 48 minutes, 43 seconds So between the three panels and boards would be much more profitable than AC blocks, right? 48:51 48 minutes, 51 seconds See there are a lot of synergies across three. So we look at it as a combined unit um 48:59 48 minutes, 59 seconds because a lot of boards for instance are fed into the panel side and so on. So 49:06 49 minutes, 6 seconds it's hard to sort of split it across the three. 49:12 49 minutes, 12 seconds Sure. Now just coming to polymer if you can just elaborate on your strategy for pipes and fittings like you mentioned 49:19 49 minutes, 19 seconds the jalgam allocations and the distribution is different from our core asbestos and boards business so 49:26 49 minutes, 26 seconds I'm guessing we are doing this via distributors and um unlike roofing we don't have leading industrial capacities 49:34 49 minutes, 34 seconds and our range probably is lower than the leaders here. So can is can this can this turn around and scale up over the 49:42 49 minutes, 42 seconds next few years or Yeah. So a few clarifications first when 49:51 49 minutes, 51 seconds it comes to range we are comparable to anyone in the industry including the largest player in the country and that 50:00 50 minutes is not something that was there over say 3 years ago but in the last 3 four years there has been concerted effort to 50:08 50 minutes, 8 seconds ensure that we are complete on our range. Uh we carry over 3,000 SKUs. 50:17 50 minutes, 17 seconds uh and from PPVC, UPVC, OPVC to HDP, the entire 50:26 50 minutes, 26 seconds range is available with us. Point number one. Point number two, we have a manufacturing footprint across 50:34 50 minutes, 34 seconds all the four regions of the country. So, north, south, east, west. Third, we have significant 50:43 50 minutes, 43 seconds capacity in our production plant. So for us to scale up from where we are to let's say 50:51 50 minutes, 51 seconds um another 30 40% more than this we have that kind of capacity already in so it does not require fresh investments. 51:00 51 minutes Um so those are three sort of baseline items. 51:07 51 minutes, 7 seconds Got it. Given what the market given what the market conditions and I'm now commenting on the strategy what the 51:14 51 minutes, 14 seconds market conditions were in the year that has finished FI26 we were as a team sharply focused on 51:21 51 minutes, 21 seconds making sure that all the operational efficiencies are maxed out and a lot of 51:29 51 minutes, 29 seconds work was done on that which is now visible in our 4 to4 numbers even if I discount some of these material and 51:36 51 minutes, 36 seconds material cost related items which were one off because of the price spike that happened. There is still a lot of gain to be shown on the profitability side. 51:47 51 minutes, 47 seconds We feel that's now in a stable area and as the markets are sort of looking positive demand scenario is looking 51:54 51 minutes, 54 seconds slightly better. We are focused on accelerating sales a lot of effort and 52:01 52 minutes, 1 second initiatives have gone in defining which markets we want to win. Um a proper sales acceleration program has been 52:10 52 minutes, 10 seconds underway for the last 6 months and really now the focus is just make sure that we are winning in the markets that we have identified as our priority ones. 52:23 52 minutes, 23 seconds Okay sir. So my last question if you ask me the strategy strategy is essentially around sales acceleration. 52:30 52 minutes, 30 seconds Right. Right. 52:33 52 minutes, 33 seconds Got it. For my last question for AAC blocks, could you mention which are the largest two three capacities in the 52:41 52 minutes, 41 seconds industry market research 52:49 52 minutes, 49 seconds you know that I mean again I can talk about my capacities but it's not right for me to talk about others. 52:59 52 minutes, 59 seconds Okay sir. Thank you sir. Okay. Thank you. Thank you. 53:07 53 minutes, 7 seconds Your next question comes from the line of Mo Shrianka from RM Capital. Please go ahead. 53:13 53 minutes, 13 seconds Uh hello sir. Uh there has been a structural increase in our employee cost percentage post our acquisition of parador. So as part of our BCG cost 53:22 53 minutes, 22 seconds cutting program, do we like intend to do more rationalization of our employee strength and like bring it back around 10% of revenue like it was earlier? 53:35 53 minutes, 35 seconds Most of the manpower cost has not increased substantially in parador. It is as we mentioned 1.8 million euro 53:43 53 minutes, 43 seconds provisions created for severance. At the same time last year forex was 1991 whereas this year the conversion rate is 53:51 53 minutes, 51 seconds 106 107. So there is a impact on account of forex conversion rate. 53:59 53 minutes, 59 seconds It is largely more or less same as last year in parador. 54:03 54 minutes, 3 seconds No, I'm talking about like before the acquisition of parador like as a percentage of sales it used to be around 10% and now I think it's around more than around 15% and more than 50%. 54:16 54 minutes, 16 seconds like are we like planning to also the denominator if it's also um 54:25 54 minutes, 25 seconds it's a function of also the denominator you are applying between say 8 years ago and now so that's also at play. Uh 54:33 54 minutes, 33 seconds having said that in terms of both headcount and the cost of headcount it's 54:39 54 minutes, 39 seconds something that we look at constantly uh and wherever there is streamlining that 54:46 54 minutes, 46 seconds needs to be done we are always on the job. 54:51 54 minutes, 51 seconds Okay. And are we trying to restrict it to some uh percentage of it like in terms of uh uh that and also like uh one 55:00 55 minutes more question would be how much is like the maximum that we are comfortable to because leverage has increased a lot in the last few years. 55:17 55 minutes, 17 seconds So if you say our equity is close to 1100 K at console level whereas date 55:23 55 minutes, 23 seconds structure is 850 K. So um we are comfortable to another 200 250 K at this point of time. 55:35 55 minutes, 35 seconds Okay. Okay. Got it. That's it for myself. 55:43 55 minutes, 43 seconds Thank you. The next question comes from the line of Sanjay Kumar from I thought PMS. Please go ahead. 55:50 55 minutes, 50 seconds Uh hi. Uh first question on uh margins in Q2 called uh I think we had committed 55:58 55 minutes, 58 seconds to about 150 to 200 basis points uh aa improvement from the BCG project. In Q4 56:05 56 minutes, 5 seconds on a standalone basis we did about uh 4% AITA margins. This is excluding other income. So roughly 27 crores AITA. So I 56:14 56 minutes, 14 seconds guess the BCG driven savings has already played out uh as you had uh guided for in Q2. So how do we get to a 10 12% EITA band EITA range? 56:27 56 minutes, 27 seconds Which segments and what levers will take us there now that BCG has played out? 56:33 56 minutes, 33 seconds Can you give us segment wise AITA margin profile? You know where we are in Q4 and how do we get to where do we get to uh in a say 2 three year period. 56:47 56 minutes, 47 seconds On a lighter note, we can keep doing BCG type projects and keep adding that. But it's a joke. Uh the see the the trick 56:57 56 minutes, 57 seconds for us and the to get to double digits which is where our first aspiration is to get the portfolio right in terms of the mix. 57:08 57 minutes, 8 seconds uh without me mentioning it you have a sense basis are numbers and declarations that there are certain segments which are nearer that double digit mark and 57:17 57 minutes, 17 seconds certain segments which are not. So one the indexation on that and so for instance our focus on construction 57:26 57 minutes, 26 seconds chemical is coming from that whole belief that that's a segment that can be um in double digits. 57:35 57 minutes, 35 seconds So it should have a reasonable share in the overall portfolio. Second, our investments that are happening on the 57:43 57 minutes, 43 seconds wall side is also coming from there because that se uh segment even today in our portfolio probably among the higher 57:52 57 minutes, 52 seconds profitable one. So getting that mix right is important and overindexing on elements which are better profitability is a is a key one. 58:07 58 minutes, 7 seconds Okay. And and uh parador I think in FI25 also we had done a uh package or one 58:15 58 minutes, 15 seconds time package. Now we have provided another 1.8 million uh in Q4. So is this 58:22 58 minutes, 22 seconds the end of restructuring there? Should we expect more seance in uh FI27 and this is one and the impairment at the 58:31 58 minutes, 31 seconds parador level itself. Does it mean there's a there are concerns as a going concern for uh parador? What what led you to the impairment? 58:45 58 minutes, 45 seconds Led you to the impairment? 58:46 58 minutes, 46 seconds See if you see there is a there is a losses in parador in last couple of years. Um the value at console level is 58:54 58 minutes, 54 seconds adjusted on account of parador losses in last years to the extent of around 20 million euro. 59:00 59 minutes um whereas in India the investment was at the same level at original cost level. So based on the current valuation 59:09 59 minutes, 9 seconds based on DCF model and the CCF model we have arrived the valuation. Um and then we have worked out the equity value and 59:16 59 minutes, 16 seconds then adjusted the equity value investment with the current equity value as per the valuation model. 59:24 59 minutes, 24 seconds So so that is one of the reason the impact has come only in standalone books not in the console books. 59:30 59 minutes, 30 seconds Okay. What is the residual equity value today? What is the equity value equity value? 59:40 59 minutes, 40 seconds Um, so so it's around 200 K as on 31st March our original investment was 273.5 K. 59:49 59 minutes, 49 seconds Okay. Okay. And this seance will continue we have been doing restructuring every year. What to expect in FI27 in parador profitability? 1:00:03 1 hour, 3 seconds I think what we should expect is a bounce back on sales uh which then has a positive flow through on on 1:00:11 1 hour, 11 seconds profitability. That's that's the expectation to carry for this year. 1:00:19 1 hour, 19 seconds Okay. Okay. Final question. What was the volume growth in uh pipes and walls 1:00:26 1 hour, 26 seconds uh segment in Q4 uh 1:00:35 1 hour, 35 seconds pipes volume growth is in the zone of about 2 to 3% and the second one was walls 1:00:43 1 hour, 43 seconds walls overall volume growth in Q4 will be a blended of about 20% % less. 1:00:54 1 hour, 54 seconds Okay. Okay. Thank you. That's excellent. Thank you. Thank you so much. 1:01:00 1 hour, 1 minute Thank you. Your next question comes from the line of Anu Nam Nambiat with Equity Intelligence India Private Limited. 1:01:08 1 hour, 1 minute, 8 seconds Please go ahead. 1:01:09 1 hour, 1 minute, 9 seconds Hi. Uh thanks for giving me an opportunity. So my question is autep uh this is in line with uh the two 1:01:17 1 hour, 1 minute, 17 seconds comments which valued uh two previous participants asking question. So you 1:01:22 1 hour, 1 minute, 22 seconds joined as uh the CEO probably in 2023 and at that time the employee cost was 1:01:29 1 hour, 1 minute, 29 seconds around I think around 400 crores 400 4001 crores I don't know the exact number but somewhere around that range and for the current financial year I 1:01:38 1 hour, 1 minute, 38 seconds think we are closing at around uh nearly 600 crores. So uh over the last 3 years or four years we have seen a 200 cr 1:01:46 1 hour, 1 minute, 46 seconds increase in the employee cost but uh despite that we have not been able to uh 1:01:52 1 hour, 1 minute, 52 seconds drive sales. So um I would like to know your thoughts into this because uh 1:01:58 1 hour, 1 minute, 58 seconds despite paying top uh salaries and having top talent what is that is not letting us drive the sales. 1:02:13 1 hour, 2 minutes, 13 seconds Hello first I think uh numbers you are quoting and in general directionally I can 1:02:21 1 hour, 2 minutes, 21 seconds understand where you are coming from. So the specifics of the number I would urge you to check because they don't seem to tally with what our numbers are. There 1:02:29 1 hour, 2 minutes, 29 seconds is a India part of the salary or and let me complete please. Yeah. Yeah. 1:02:37 1 hour, 2 minutes, 37 seconds Yeah. There is there is a India part manpower cost and then there is a parador part. There is also currency factor that comes in and so on and so 1:02:45 1 hour, 2 minutes, 45 seconds forth. So we can we can speak separately but uh there is some bit of parsing that is required there. That said the revenue 1:02:54 1 hour, 2 minutes, 54 seconds growth trajectory has not been where it should be. Uh in the last at least couple of years the 1:03:03 1 hour, 3 minutes, 3 seconds focus has been to put new growth engines which can drive revenue in a more meaningful fashion which is where the 1:03:10 1 hour, 3 minutes, 10 seconds inorganic activities have happened which is where a lot of organic push uh on building new markets new product 1:03:19 1 hour, 3 minutes, 19 seconds segments has been there. Some of these things have a little bit of a timing angle to it in terms of from germination 1:03:28 1 hour, 3 minutes, 28 seconds or sewing the seeds to when the harvest can be done. So maybe we are slightly earlier in the cycle. I I think what has 1:03:38 1 hour, 3 minutes, 38 seconds happened over the last couple of quarters gives us confidence that finally the growth cycle is moving and 1:03:45 1 hour, 3 minutes, 45 seconds you will see numbers which are more to your liking than what it has been in the past. Uh that's number one. Number two, 1:03:55 1 hour, 3 minutes, 55 seconds it's also been an environment where for our industry both in India and outside India, the conditions have been less than 1:04:03 1 hour, 4 minutes, 3 seconds benign. So there have been a fair amount of headwinds that have also been at play. And the third factor I will play 1:04:10 1 hour, 4 minutes, 10 seconds is if you scratch below the surface in every product segment there's been volume growth over the last couple of 1:04:17 1 hour, 4 minutes, 17 seconds years but given the competitive situation and the pricing environment it has not 1:04:25 1 hour, 4 minutes, 25 seconds translated fully on the revenue side which again is a correction that has to be done and so on. So there are some 1:04:33 1 hour, 4 minutes, 33 seconds positives uh but the big picture I'm not disagreeing with what you are saying 1:04:41 1 hour, 4 minutes, 41 seconds uh from an optimistic point of view if I say that we have a a capable team uh to drive the sales uh further higher in the 1:04:49 1 hour, 4 minutes, 49 seconds coming years would you uh agree to that or would that be uh a right statement to make? Do you have the confidence? 1:05:02 1 hour, 5 minutes, 2 seconds Absolutely. Unequivocally that's what is keeping us going. Uh the teams have been 1:05:09 1 hour, 5 minutes, 9 seconds both restructured. New new talent has been brought in and many cases new teams have been brought in. In many cases 1:05:16 1 hour, 5 minutes, 16 seconds there is the old set of people who are still leading from the front. So there 1:05:23 1 hour, 5 minutes, 23 seconds is a huge amount of confidence on the mark on the team. I will again give examples. I think we can keep talking 1:05:30 1 hour, 5 minutes, 30 seconds about what the numbers are and somewhere let's say pipe segment where 1:05:37 1 hour, 5 minutes, 37 seconds we have been our own critics in the past. This is also the team which has delivered stellar numbers in Q4. So with 1:05:46 1 hour, 5 minutes, 46 seconds some amount of market tailwind, this team has also shown evidence that it can take the ball out of the park. So we 1:05:55 1 hour, 5 minutes, 55 seconds have the right ingredients. Um and these things also have a little bit of timing factor that comes into play. So we can't also get ahead of the curve on that. 1:06:09 1 hour, 6 minutes, 9 seconds So one final question if I may add, can I? Yeah, this is on the capital allocation sir. 1:06:17 1 hour, 6 minutes, 17 seconds Uh capital allocation sir. We have uh stated our intent to grow in our inorganically in our previous calls and I think even through the AGMs and we 1:06:26 1 hour, 6 minutes, 26 seconds have a stated objective of a billion dollar revenue target as well. So with the current capital structure uh that would point to some sort of a fund raise 1:06:35 1 hour, 6 minutes, 35 seconds or a fund infusion equity fund infusion rate and uh do you see the promoters 1:06:42 1 hour, 6 minutes, 42 seconds willing to uh put in extra money and especially at the current depressed valuations does it make sense for them 1:06:49 1 hour, 6 minutes, 49 seconds to consider that I know you are from the management side it is a bad decision but then what are the feelings that you're 1:06:56 1 hour, 6 minutes, 56 seconds getting you've already answered the question for me. I can't answer on behalf of the 1:07:03 1 hour, 7 minutes, 3 seconds promoters or the board. Um I think from a professional management perspective, we are on the right way. Uh there is a 1:07:11 1 hour, 7 minutes, 11 seconds lot of momentum and these are topics which also get solved as we go along. It is not that the switch from where we are 1:07:20 1 hour, 7 minutes, 20 seconds to a billion dollars will happen overnight. If we are on that trajectory, there will also be a much better 1:07:28 1 hour, 7 minutes, 28 seconds increase of cash approvals from the operations as well and so on. So, uh let that play out 1:07:35 1 hour, 7 minutes, 35 seconds on on that front. At least in my position, I carry no concerns and worry. 1:07:41 1 hour, 7 minutes, 41 seconds Fair enough sir and wish you all the best. Thank you. Thank you so much. Thank you. 1:07:51 1 hour, 7 minutes, 51 seconds Thank you. 1:07:54 1 hour, 7 minutes, 54 seconds Uh maybe a quick time check should be we are on top of the ISO. 1:08:01 1 hour, 8 minutes, 1 second Uh sure sir. 1:08:06 1 hour, 8 minutes, 6 seconds Ladies and gentlemen, we will take that as our last question for today. I now hand the conference over to the management for closing comments. 1:08:16 1 hour, 8 minutes, 16 seconds Thank you. It's been a pleasure interacting with all of you over this call. We thank you for taking the time out and engaging with us today. Uh we 1:08:25 1 hour, 8 minutes, 25 seconds value your continued interest and support. And if you have any further questions or would like to know anything more about your company, kindly reach 1:08:33 1 hour, 8 minutes, 33 seconds out to our investor relations desk. I recognize there might be some questions that we've not been able to take. So please reach out to us. We'll be happy 1:08:41 1 hour, 8 minutes, 41 seconds to engage after the call. Thank you very much. 1:08:48 1 hour, 8 minutes, 48 seconds Thank you on behalf of Berlano Limiteds. That 1:08:55 1 hour, 8 minutes, 55 seconds concludes this conference. Thank you everyone for joining us and you may now disconnect your lines.