Borosil Limited — Q3 FY26

Borosil Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=KQxpzOfRBYs Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to Borosil Q3 FI26 earnings conference call hosted by ICICI 0:08 8 seconds securities. As a reminder, all participant lines will be in the listenon mode and there will be an opportunity for you to ask questions 0:15 15 seconds after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on 0:24 24 seconds your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Menang 0:30 30 seconds Goyel from ICICICI securities. Thank you and over to you sir. 0:36 36 seconds Thank you. Good evening ladies and gentlemen. On behalf of ICIC securities, we welcome you all to Q3 and 9 months 0:44 44 seconds FY26 results conference call of Boris Limited. Today we have with us senior management represented by Mr. Shivar Kiruka, managing director and CEO. Mr. 0:54 54 seconds Mr. Rajes Kumar Chadri full-time director [clears throat] Mr. Anand Sultana CFO Mr. Ritu Sharma 1:02 1 minute, 2 seconds President and Mr. Dhal Patil head investor relations now I hand over the call to management for initial comments 1:09 1 minute, 9 seconds on the quarterly performance then we will open the floor for Q&A session thank you and over to you Shiva sir 1:18 1 minute, 18 seconds well thank you Mr. Go ahead and ICICI securities for arranging this call. I wish all of you a good good afternoon. 1:24 1 minute, 24 seconds The Borosil team is delighted to be communicating with you once again. I'm pleased to inform you that Boris Limited's board has approved the 1:32 1 minute, 32 seconds financial results for quarter 3 and 9 month year ended financial year ended 26 uh during our meeting on 5th February 1:40 1 minute, 40 seconds 2026. We have submitted our results and an updated presentation to the stock exchanges and they're also available on 1:47 1 minute, 47 seconds a company's website for your review. I'm pleased to share that Boris Limited delivered a steady performance in the 9 1:54 1 minute, 54 seconds month financial year 26 with consolidated revenues from operations at approximately INR 912 crores compared to 2:02 2 minutes, 2 seconds INR 838 crores in the translates to about 9% year-over-year growth. uh despite a challenging year 2:11 2 minutes, 11 seconds and we'll come to the reasons for the challenge shortly. The 9 months growth highlights uh the 9 months growth highlights the resilience of our 2:18 2 minutes, 18 seconds business model, strong execution capabilities and the continued trust of our customers keeping us well positioned. 2:27 2 minutes, 27 seconds We also have a fantastic team that in that ensures uh in spite of the odds driven by BIS we are able to continue 2:36 2 minutes, 36 seconds path ahead. We shall focus on the year-to-ate performance uh rather than quarterly reason for that because Diwali 2:44 2 minutes, 44 seconds this year was quite early as compared to the last year and hence the quarter three numbers are not comparable. Uh this point was also noted in the last 2:51 2 minutes, 51 seconds conference call um in the in the last quarter. So coming to the 9month financial year 26 uh numbers at the 2:58 2 minutes, 58 seconds consolidated level the company recorded an operating IDA before investment income and one-time items of INR 145 3:06 3 minutes, 6 seconds crores compared to INR 140 crores in the same period last year marking 3.4% year-over-year increase. The operating 3:15 3 minutes, 15 seconds margin was slightly lower at 16.2% compared to 17% in the previous year. Uh we'll come to the reasons for that in a short period of time. 3:24 3 minutes, 24 seconds uh other operating income for the 9 month financial year 26 includes INR 18.1 crores from shared service support 3:32 3 minutes, 32 seconds income compared to INR 12.6 crores in the same period last year with the related expenses reflected under total 3:40 3 minutes, 40 seconds expenses profit before tax for the period was INR 86.2 two crores compared to roughly it's 3:47 3 minutes, 47 seconds the same INR86.3 crores in the previous year. Uh this year includes a one-time 3:54 3 minutes, 54 seconds stamp duty expense provision reversal uh related to de merger of INR 7.2 crores which is shown under the head other 4:01 4 minutes, 1 second income and also includes onetime expenses of INR 1.8 crores towards professional fees for a strategic assignment. The income from investments 4:10 4 minutes, 10 seconds um on the other side is INR 2.6 6 crores and royalty income is INR 7.6 crores in 9 month FI26. 4:19 4 minutes, 19 seconds Last year during the same period the company had recognized a one-time income on account of transfer of tenency rights of one of its properties of INR 13.5 4:28 4 minutes, 28 seconds crores with income from investments of around INR 4.0 crores. 4:34 4 minutes, 34 seconds Coming to depreciation, the depreciation increased by INR5 crores while finance cost declined by INR6 crores primarily 4:42 4 minutes, 42 seconds due to debt repayment in 9 month FI26 as compared to last year. Uh the graduity and leave provision on account of the 4:50 4 minutes, 50 seconds new labor cord is approximately INR 4 crores in the 9 months FI26 which is shown as an exceptional item. As a 4:58 4 minutes, 58 seconds result, PAT rose marginally from INR 63.1 crores in 9 month FI 20 uh in in 9 5:05 5 minutes, 5 seconds month uh sorry it rose marginally from INR 63.1 crores in uh last year's 9 5:12 5 minutes, 12 seconds months versus INR 64.1 crores in 9 month FI26 reflecting a bit growth of approximately 2% year-over-year. 5:21 5 minutes, 21 seconds Uh another point on the balance sheet is the company generated robust cash flows of approximately INR 130 crores in the first 9 months of uh this year. 5:31 5 minutes, 31 seconds Therefore as a result of all of this at a consolidated level Boris Limited maintains a strong balance sheet with investments cash and bank balance of 5:39 5 minutes, 39 seconds approximately INR 104 crores and a total debt including working capital of INR 91 crores resulting in a net cash position 5:47 5 minutes, 47 seconds of roughly INR 13 crores. So coming to the operating performance, I want to start with a big trend that we have seen 5:55 5 minutes, 55 seconds and we've been a part of is a shift from plastic to glass. So as we see in the results, India is shifting from plastic 6:04 6 minutes, 4 seconds storage and plastic lunch boxes to glass storage and lunch boxes. It's not just a material shift but also a change in 6:11 6 minutes, 11 seconds usage behavior. India's food storage and lunch habits are undergoing a quiet but decisive transformation. For decades, 6:19 6 minutes, 19 seconds plastic lunch boxes and storage containers dominated in Indian kitchens and office bags. This was driven by affordability and convenience. Today, 6:28 6 minutes, 28 seconds that dominance is being challenged by health awareness, hygiene expectations, and lifestyle evolution. This marks a 6:36 6 minutes, 36 seconds fundamental behavior change. Glass lunchboxes are becoming the preferred choice for office lunch, college meals, 6:43 6 minutes, 43 seconds travel, and long commutes, and a fitnessled routine. Due to exposure to informative media and medical content, 6:50 6 minutes, 50 seconds Indian consumers are far more aware of chemical leeching from plastics, stains, odors and long-term health impact of 6:58 6 minutes, 58 seconds various plastic lunch boxes available in the market. Glass, especially borosicate glass, answers these questions with no 7:06 7 minutes, 6 seconds chemical leeching, no reaction with organic food and safe reheating. 7:12 7 minutes, 12 seconds Glass also offers visible hygiene. What you see is what you eat. This transparency builds confidence 7:19 7 minutes, 19 seconds especially when food is consumed outside the home. Boris's credibility of being the glass experts and scientific pre 7:26 7 minutes, 26 seconds precision along with the brand trust makes it the favorable deciding factor for customers. 7:33 7 minutes, 33 seconds Borisil has customized the glass lunchbox and the storage range for daily Indian usage. This is reflected in the 7:40 7 minutes, 40 seconds numbers that we will see on the growth in the glassware business. 7:45 7 minutes, 45 seconds India's INR 4000 cr lunchbox market is seeing growing demand for safe microwave friendly and sustainable products. 7:54 7 minutes, 54 seconds Borosil stands out with its mass premium glass lunchboxes offering durability, leakproof designs and microwave 8:03 8 minutes, 3 seconds compatibility making them a hero product in our portfolio and a clear beneficiary of this structural trend. 8:10 8 minutes, 10 seconds Coming to numbers as far as the category is concerned Borosil has the glassware range has grown by an impressive 21% 8:19 8 minutes, 19 seconds uh in 9 months FI26 compared to the same period last year with a revenue of 231 8:26 8 minutes, 26 seconds crores compared to INR 191 crores uh in in 9 month FI25. This reflects uh 8:33 8 minutes, 33 seconds growing demand for glassware as well as trends which I've just spoken of. Coming to Lara, Lara Opalware segment recorded 8:41 8 minutes, 41 seconds sales of INR 314 crores in this year 9 months compared to INR 292 crores uh in the same period last year which is a growth of 7%. 8:53 8 minutes, 53 seconds Non-classware segment which encompasses a wide range of small home appliances, insulated bottles and glass, cookware 9:01 9 minutes, 1 second and other kitchen essentials posted a very 2% increase in revenue. Turnover for this segment reached INR 349 crores 9:09 9 minutes, 9 seconds in 9 month FI26 compared to INR 341 crores in the same period last year. The main cause for this was the BIS 9:17 9 minutes, 17 seconds compliance requirements which have dramatically affected our hydro bottle sales as some of the channels or many of the channels are only accepting BIS certified steel products. 9:28 9 minutes, 28 seconds As we have already communicated in the quarters past uh our team has recognized these headwinds and we have now the 9:36 9 minutes, 36 seconds board has approved the project for upcoming manufacturing facility in Rajasthan for these bottles through our wholly owned subsidiary Styless India 9:44 9 minutes, 44 seconds Limited. This project includes three double wall production lines for vacuuminssulated steel flask bottles and containers with an estimated capacity of 9:53 9 minutes, 53 seconds close to 4 million units per year with an estimated capex of approximately INR 65 crores. Estimated commercial 10:01 10 minutes, 1 second production from two of these lines is expected by the end of quarter 4 of this year that is in March in the next month 10:09 10 minutes, 9 seconds and from the third line by the end of quarter 1 of financial year 27 subject to receipt of necessary approvals. This 10:17 10 minutes, 17 seconds investment of 65 crores will be financed through a mix of equity, debt and internal approvals. And the expansion reinforces our commitment to make in 10:25 10 minutes, 25 seconds India will enhance cost efficiency and ensure BIS compliance and of course strengthen our supply chain resilience 10:32 10 minutes, 32 seconds by reducing dependence on import especially the uh rupee depreciation which we have all seen 10:40 10 minutes, 40 seconds during this uh 9month period. The company has also strengthened its focus on cost discipline to improve operating efficiency. Uh expenditure on 10:49 10 minutes, 49 seconds advertising and sales promotion uh remained well controlled declining from INR 62 crores to INR 60 crores in this uh calendar in this 9 months uh FI26. 11:01 11 minutes, 1 second Again the main reason for this was the lack of availability of um of the bottles which uh therefore were not there were no reason to advertise. Uh 11:09 11 minutes, 9 seconds but we switched some of the advertising to glassware. 11:12 11 minutes, 12 seconds uh power and fuel costs also saw a uh you know a very good reduction falling from INR 64 crores to INR 56 crores over 11:20 11 minutes, 20 seconds the same period underscoring the effectiveness of our ongoing cost optimization initiatives and margin focus approach. The company is further 11:28 11 minutes, 28 seconds investing INR75 crores towards setting up a 20 megawatt ground mounted solar plant with a battery energy storage 11:35 11 minutes, 35 seconds system that will further reduce overall power cost and this uh project is expectedly commissioned in this month itself that is Q4 of FI26. 11:45 11 minutes, 45 seconds This phase three of solar shall take care about 65% of the overall power requirement of the company. Which means 11:51 11 minutes, 51 seconds that uh from uh as as a large power consumer approximately 65% of our total power will come from renewable energy 12:00 12 minutes sources which is also fantastic from a ESG perspective. 12:04 12 minutes, 4 seconds The company's Japur manufacturing facility was also awarded the gold medal at the prestigious India green manufacturing challenge 2025 by the 12:13 12 minutes, 13 seconds international research institute for manufacturing India. This recognition underscores a continued commitment to sustainable manufacturing practices, 12:22 12 minutes, 22 seconds energy efficiency and environmentally responsible operations. 12:26 12 minutes, 26 seconds The award reflects the strength of our process optimization initiatives and reinforces our focus on integrating 12:33 12 minutes, 33 seconds sustainability with long-term operational and cost efficiency. Um as a cornerstone of Boris's long-term 12:41 12 minutes, 41 seconds strategy is its make in India commitment. In addition to the uh capex already outlined before, we also, as we 12:49 12 minutes, 49 seconds all are aware, we operate one of the country's largest opalware facilities at 84 tons per day, which will soon be 12:56 12 minutes, 56 seconds expanded to 90 tons per day. Uh alongside a 25 ton per day borosilicate glassware plant that was commissioned in early 2024. 13:05 13 minutes, 5 seconds Building on this foundation, uh we are expanding our footprint with manufacturing facilities in some of the other areas that we have uh that that that are in our product range. 13:18 13 minutes, 18 seconds Between FI18 and FI25, the company has delivered strong and cons consistent growth with revenues 13:26 13 minutes, 26 seconds recording a keer of 23.5% over 7 years and IDIDA expanding at a faster 34.3% 13:33 13 minutes, 33 seconds keer reflecting operating leverage and thereby improve profitability since the acquisition of Lara which is the Opel 13:40 13 minutes, 40 seconds web brand in 2016 revenue increased from INR48 crores in that year to INR 384. 4 crores in FI25 reflecting a 26% CAGGR. 13:53 13 minutes, 53 seconds Also, the non-glassware portfolio scaled from INR 23 crores in FI7 to INR 453 crores in FI25, achieving achieving an 14:02 14 minutes, 2 seconds exceptional 45% KGA, underscoring the company's ability to successfully grow into new target categories as well as 14:10 14 minutes, 10 seconds create long-term value. In keeping with this, another point to note is that in May 2025, the government of India notified the safety of household, 14:18 14 minutes, 18 seconds commercial and similar electrical appliances that is a quality control order 2025 marking a significant step towards 14:26 14 minutes, 26 seconds enhancing consumer safety, quality assurance and market regulation. 14:30 14 minutes, 30 seconds Effective 19th March 2026, that is in the next month. The order mandates BI certification for a broad range of electrical appliances including coffee 14:39 14 minutes, 39 seconds makers and cooking ranges, hobs, ovens and similar appliances. 14:45 14 minutes, 45 seconds Accordingly, the company is building up not only a domestic supply chain but also advancing inventory to mitigate potential sales disruptions as 14:53 14 minutes, 53 seconds non-certified products will not be permitted for sale in India beyond the prescribed timelines. I'm happy to note that having the experience of the issues 15:03 15 minutes, 3 seconds we have faced in our hydra bottle category, we have been aware of this uh for quite some time now and thereby have 15:10 15 minutes, 10 seconds already moved a large part of our sourcing from international sourcing to local sourcing and thereby do not expect 15:18 15 minutes, 18 seconds any material impact of this QCO on our appliances range. 15:25 15 minutes, 25 seconds Borisil is leading India's shift towards healthier eco-friendly kitchens by replacing plastic with microwave safe glass and stainless steel products. 15:36 15 minutes, 36 seconds Rising incomes and grow growing health awareness are driving adoption while aspirational design, educational marketing and a focus on hygiene and 15:45 15 minutes, 45 seconds elegance are helping Boris convert plastic users into glass and setting new standards for the modern kitchen. BS a 15:53 15 minutes, 53 seconds strong omni channel presence spanning general trade large format stores leading e-commerce and uh quickcommerce 16:01 16 minutes, 1 second platforms and growing B2B and export networks have driven deeper market penetration with availability in over 16:09 16 minutes, 9 seconds 24,000 retail outlets. We have built a well diversified revenue base serving both urban consumers as well as rural 16:17 16 minutes, 17 seconds ones. Boris's strong brand equity, the diversified portfolio and expanding manufacturing [clears throat] 16:24 16 minutes, 24 seconds footprint have geared the company for long-term sustainable growth both on the revenue as well as the profitability 16:31 16 minutes, 31 seconds side. With that, I would now like to open the floor to any questions that you may have. Thank you. 16:38 16 minutes, 38 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 16:45 16 minutes, 45 seconds star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are 16:54 16 minutes, 54 seconds requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. 17:11 17 minutes, 11 seconds Our first question comes from the line of Bhavin Rupani from Invest. Please go ahead. 17:17 17 minutes, 17 seconds Yep. Uh hi sir, thanks for the opportunity. Uh first question related to hydra. So I understand we have 3.6 17:26 17 minutes, 26 seconds million or 4 million pieces of expansion coming in in couple of quarters. So how should one understand ramp up of this 17:33 17 minutes, 33 seconds category that is first and second is what is our beta margins that we are targeting from this category at utilization. 17:43 17 minutes, 43 seconds So as far as ramp up is concerned I mean like any manufacturing facility it may take 3 to 6 months to come to uh 17:51 17 minutes, 51 seconds you know at which which need which is uh let's say at 100% capacity utilization. 17:56 17 minutes, 56 seconds uh we hope to do it in 3 months but with experience normally takes about 6 months to get there u so that's 18:04 18 minutes, 4 seconds Indonesia we also built the last year good domestic sourcing interrupt you sir but your voice is 18:11 18 minutes, 11 seconds breaking okay um okay let's try that again um is it 18:18 18 minutes, 18 seconds better now can you hear me yeah comparatively better okay so as I was saying that I I think 18:25 18 minutes, 25 seconds that it may take between 3 and 6 months to ramp up the facility to 100% capacity utilization. Uh but in the meantime, the 18:34 18 minutes, 34 seconds team's been working very hard to develop a struct uh to develop a domestic sourcing ecosystem and that's also delivered good results. So uh I do 18:43 18 minutes, 43 seconds believe that between our our own production as well as uh the the domestic sourcing we have a very good 18:51 18 minutes, 51 seconds chance of uh of going back to at least last year's level of hydra in the coming year. 18:59 18 minutes, 59 seconds Okay. And any sense on keya or that we plan to clock from this uh uh plant? 19:07 19 minutes, 7 seconds So quite frankly I think uh this is a question I'd not like to take at the moment. uh the reason is that uh a lot 19:14 19 minutes, 14 seconds of it depends on the achievement of uh you know the the productivity as well as the material efficiency or the scrap 19:22 19 minutes, 22 seconds rates as as is generally known. So obviously our target would be that we should generate a ROCE of 24% that's our 19:31 19 minutes, 31 seconds target for across our business and therefore this business is no different. 19:35 19 minutes, 35 seconds So that would definitely be a target for us to achieve. Um you know but again the first few months there's likely to be 19:42 19 minutes, 42 seconds higher scrap rates and lower you know manpower productivity as as a team learns uh the process and obviously we 19:50 19 minutes, 50 seconds can never compromise quality uh while delivering uh the product to the customer. So keeping that in mind I think I would stay away from that except 19:58 19 minutes, 58 seconds giving you a target. What is to be expected in the coming you know six months I don't know but longterm we definitely will achieve this target of 24% return on capital on the investments 20:07 20 minutes, 7 seconds we have made which includes positive working capital as well yeah and this 24% is pre-tax 20:17 20 minutes, 17 seconds yes pre-tax okay and I understand we don't disclose subcategory wise details on hydra but 20:25 20 minutes, 25 seconds would it be possible to specify what growth or the growth we have seen in this category as compared to last year. 20:30 20 minutes, 30 seconds This is just to help us more appreciate it. 20:35 20 minutes, 35 seconds 30% 30% 30%. Okay. Yeah. 20:43 20 minutes, 43 seconds Uh so next question and that's only that's subject to material availability only not demand. 20:48 20 minutes, 48 seconds Demand's been strong but we've not been able to supply. Okay. 20:53 20 minutes, 53 seconds Uh so next question is on small kitchen appliances. We earlier in our calls indicated 50% of supply chain is now in 21:00 21 minutes India. How should we understand the progress of the sale in this quarter? 21:05 21 minutes, 5 seconds Yeah, I think we are now inching towards 60 and uh I think by the end of the coming year we'll be at 85%. 21:16 21 minutes, 16 seconds Okay. And uh you had mentioned about incremental capex in this category as well from FI27 onwards in from timeline 21:23 21 minutes, 23 seconds or in finalization that we have done during the quarter. 21:27 21 minutes, 27 seconds Um sorry I didn't quite get the question. 21:30 21 minutes, 30 seconds So we had indicated that we'll be uh manufactur we plan to manufacture this inhouse and the kicks for this will be done from FA 27 or 28 on. 21:38 21 minutes, 38 seconds No I I said we are considering it. We've never announced any uh manufacturing in this yet. We have only indicated that we're considering it but at the moment I 21:47 21 minutes, 47 seconds have no nothing to disclose in terms of capex or if we're going to do it or when we're going to do it but yes given the fact that BIS has been implemented on 21:55 21 minutes, 55 seconds this there is always we will we are evaluating whether we should you know what how this should what products we should do because it's a big range of products you can't do everything so we 22:04 22 minutes, 4 seconds have to understand whether to do it if we're doing it what to do what will the cost be compared to already local supply available and so on so uh I don't have 22:12 22 minutes, 12 seconds any update on that at the moment Got it. Uh, next question is on Opelware. So, Opelware expansion in timelines you spoke about 60p expansion. 22:23 22 minutes, 23 seconds And what would be the incremental capex for this expansion? 22:27 22 minutes, 27 seconds No, they that's a small that's just a debottlenecking. So there's no there's no material capex for this. So nothing to discuss here. But that that will 22:35 22 minutes, 35 seconds happen at the time of the next furnace reconstruction which will happen next year. Uh yeah, next year. 22:43 22 minutes, 43 seconds Okay. Okay. And uh there's no material. Yeah. 22:47 22 minutes, 47 seconds Yeah. Yeah. And when we do that uh if you have a follow-up question. 22:53 22 minutes, 53 seconds Yeah. I think yes. 22:57 22 minutes, 57 seconds Thank you. Our next question comes from the line of Akshhata from Seven Rivers Holding. Please go ahead. Hello. Am I audible? 23:06 23 minutes, 6 seconds Yes sir, you are. 23:09 23 minutes, 9 seconds Just again we want to understand what is the kind of current demand environment that you seeing for each one of them glassware you know non- glassware and 23:18 23 minutes, 18 seconds how has it evolved in quarter three and what's going on in quarter four now so actually demand I think uh which was 23:25 23 minutes, 25 seconds a bit depressed in the first half of the year has definitely picked up in the second half of the year okay and uh this is across product categories of course 23:34 23 minutes, 34 seconds as you can see our glassware is doing the best amongst all the you know three ranges that we have uh and that is uh 23:41 23 minutes, 41 seconds because of a shift in behavior as uh already highlighted earlier. So quite quite happy to see growth of glassware 23:49 23 minutes, 49 seconds the the team's done a wonderful job uh and uh we have some tailwinds you know in our favor from a over a structural 23:56 23 minutes, 56 seconds perspective. Um as far as demand for appliances has been fantastic. uh you know our our stainless steel uh again 24:05 24 minutes, 5 seconds the same trend on health and you know better products uh upgrading kitchens all of those trends are leading to very 24:12 24 minutes, 12 seconds strong demand in appliances and steel uh the dem there's also great demand by the way for the 24:21 24 minutes, 21 seconds double wall bottles but uh because of our unability inability to supply we've not been able to satisfy that and that's 24:27 24 minutes, 27 seconds a setback for us uh for this year um the Opalware bit um and the growth has not been great 24:37 24 minutes, 37 seconds and that's something I think we need as a as a industry we have to look into this and uh you know get some excitement back into openware um the category has 24:46 24 minutes, 46 seconds been there in the market for quite some time and I think customers need uh it needs a bit of a refresh so we are also 24:53 24 minutes, 53 seconds thinking about how what to do and uh you know evaluating what needs to be done to push the the demand off. 25:01 25 minutes, 1 second Okay. Uh following up on that sir, uh in the uh specifically in the higher segment or the stainless segments last 25:09 25 minutes, 9 seconds quarter, you said that there was a lot of stress on the channel in terms of you know procuring domestically people were not able to supply the demand that was 25:17 25 minutes, 17 seconds there from the players right how has this been in this quarter and in Q3 and then probably now a couple of months in 25:24 25 minutes, 24 seconds Q4 because we seeing some margin improvement quarter on quarter as well. So what's happening there? 25:31 25 minutes, 31 seconds You know as far as uh the demand like I said we have been uh we have actually taken a big hit because we are not available in many of the shops and many 25:39 25 minutes, 39 seconds of the you know large format stores and so on. So we've taken a hit that that shelf space has been taken by others in this in this period those who had local 25:47 25 minutes, 47 seconds manufacturing. So it's been unfortunate and I guess it's a miss on our side and uh we paying the consequences uh we're bearing the consequences for that miss. 25:57 25 minutes, 57 seconds Um but uh going forward I think once our plant is up and running then I think that's uh certainly something that will 26:05 26 minutes, 5 seconds you know we we'll be able to get back that shell space because the brand remains very strong in in in the segment. So because our quality has we've never compromised on quality even 26:14 26 minutes, 14 seconds today you know we could technically fill the space with lower quality products which we've chosen not to do. 26:21 26 minutes, 21 seconds Sorry sir, just last quarter uh you said that even not just you but everyone else in the industry is also seeing a a 26:29 26 minutes, 29 seconds crunch from because domestic suppliers are not able to supply the amount of demand from you players like you sell Milton and all of that you know and 26:37 26 minutes, 37 seconds there has been a you know glance in terms of supplying specifically on that has that situation improved in in three or four months 26:46 26 minutes, 46 seconds yeah that definitely like I said there's definitely a growth in last in the so last quarter in that sense has been better than the quarter before and I 26:54 26 minutes, 54 seconds believe Q4 will be better than Q3 because even the manufacturers in India as I already mentioned we found that some some people u have been able to 27:02 27 minutes, 2 seconds start ramping up more capacity and therefore and also supplying quality product so uh I think we're we're over 27:09 27 minutes, 9 seconds the worst of it and I hope that this Q4 and ongoing quarters will be better from a from a supply perspective from domestic. 27:18 27 minutes, 18 seconds Okay. Also, can you share the utilization levels of both the furnaces for Opel and for glass? 27:26 27 minutes, 26 seconds Opel is close to 100%, I would say 95%. And uh glass would be about 90%. No. Okay. 27:34 27 minutes, 34 seconds Thank you. Thank you. 27:36 27 minutes, 36 seconds Thank you. Our next question comes from the line of Samir, an individual investor. Please go ahead. 27:45 27 minutes, 45 seconds Hi, I am I had two small questions. 27:48 27 minutes, 48 seconds Number one, our revenue growth has been very lukewarm over the last few quarters. Can I basically attribute u 27:56 27 minutes, 56 seconds almost the entire part of this due to the hydra reason that we don't we we we not really selling that piece. Is that 28:05 28 minutes, 5 seconds the main or the revenue? 28:09 28 minutes, 9 seconds That's the only that's literally the only reason. That's your wonderful. 28:13 28 minutes, 13 seconds Secondly, just a comment your shareholding pattern if one goes over a long time has been from an FII 28:21 28 minutes, 21 seconds perspective for an institutional investors has been sub 1% and I know we are a small cap company but from a brand 28:29 28 minutes, 29 seconds perspective we are literally top of the heap. Everybody knows across India Bonus still has a brand but our market cap is 28:36 28 minutes, 36 seconds like 3,000 crores small fi holdings are sub 1%. How do we get the news out to 28:44 28 minutes, 44 seconds the investment communities that we are a force to reckon with? Isn't that a missed opportunity as we go forward? 28:51 28 minutes, 51 seconds I mean look from from management's perspective a we don't we don't look I mean we don't control our stock price except we control performance and uh the 28:59 28 minutes, 59 seconds performance hopefully drives the stock price right uh so uh there's very little I can say about stock price and b um on 29:07 29 minutes, 7 seconds the fi we do have quarterly calls such as this one and once in a while we participate uh in in various shows uh 29:16 29 minutes, 16 seconds you know your road shows not road shows as much as conferences that many of the larger players such as ICICI for example 29:23 29 minutes, 23 seconds organize. Um beyond that our focus is definitely to you know growing uh to grow our business as you already 29:30 29 minutes, 30 seconds mentioned uh we are a small company you know only 1200 crores of or 11 1200 crores of you know top line and I think 29:36 29 minutes, 36 seconds uh we need to hit closer to the 2,000 cr mark uh to start getting more interest from you know more FIS and I think uh 29:44 29 minutes, 44 seconds that will happen so we are focused on performance and I'm sure eventually the word will automatically get out and uh you know coverage as well as holding of 29:53 29 minutes, 53 seconds FI should increase. If we do the right thing, we expand revenue and margins. Okay. Thank you so much. 30:01 30 minutes, 1 second Thank you. 30:02 30 minutes, 2 seconds Thank you. Participants who wish to ask a question may press star and one on the touchstone telephone. 30:12 30 minutes, 12 seconds Anyone who wishes to ask a question may press star and one on the touchstone telephone. 30:19 30 minutes, 19 seconds Our next question comes from the line of Bhavin Rupani from Invest. Please go ahead. 30:24 30 minutes, 24 seconds Yeah, thanks for the opportunity again sir. Uh wanted to uh uh ask on opalware. 30:32 30 minutes, 32 seconds So as you said we plan to do realignment of furnace. So is it shut for how many days and what is the keeping that we plan over here? 30:40 30 minutes, 40 seconds So this is something we do every two years and a half. Okay. So it's not something new. Uh normally it gets shut 30:47 30 minutes, 47 seconds for 30 days. um 30 to 30 40 days that's a range uh of of shutdown but we always 30:54 30 minutes, 54 seconds plan for the inventory so that we don't lose any sales at that period of time so um this will happen not in this financial year in the next financial 31:02 31 minutes, 2 seconds year I believe so the it's it's roughly per furnace 31:09 31 minutes, 9 seconds about 15 to 16 crores roughly so we have two furnaces so every so that yeah so so that so it's about you. So this is the part of maintenance capex. 31:20 31 minutes, 20 seconds You can assume that uh you know let's call it uh 15 crores per year from which is because I'm saying there's two 31:28 31 minutes, 28 seconds furnaces. Um so that that 50 crores per year is our maintenance capex over there because every two and a half years you spend about 32 33 crores in in this in this uh rebuilding. 31:40 31 minutes, 40 seconds All right. And so on glassware we are hitting almost 90% uh contributions in that. So any plans for further expansion? 31:51 31 minutes, 51 seconds Yeah, so this is already planned in the planning phase deep in the plan. 31:56 31 minutes, 56 seconds Probably in the next quarter or so we'll be able to make some announcements here in terms of expansion will be greenfield brownfield no brownfield we we have space in the existing facility to expand by 50%. 32:10 32 minutes, 10 seconds Okay. And uh sir any guidance on capeex or fi27 32:18 32 minutes, 18 seconds uh fi27 kex have not been approved yet by the board so I would not like to take a stab at it but uh it's uh you know we 32:25 32 minutes, 25 seconds we see many growth opportunities so there will be reasonable capex in F27 I think let's see 32:33 32 minutes, 33 seconds okay uh couple of questions for an sir uh uh what is our absolute inventory receivables and fables His number is on December 35. 32:50 32 minutes, 50 seconds Anam, you there? 33:07 33 minutes, 7 seconds Anyone from the finance team? Anyone there? 33:11 33 minutes, 11 seconds The management line has been reconnected. 33:15 33 minutes, 15 seconds Hello. Okay. Yeah. Anna, did you hear the question? Sorry. Uh I I dropped off from the call by mistake. Yeah. Babin, can you please repeat the question? 33:23 33 minutes, 23 seconds Uh yeah, sir. What is our absolute inventory, receivable and payable numbers as on December 25? 33:29 33 minutes, 29 seconds So inventory as of 31st December 25 is roughly 324 crores. So which is about 99 days of inventory. This includes the 33:38 33 minutes, 38 seconds inventory that we are trying to build up for the appliances in terms of the quality control order which is going to be implemented and receivables is about 35 36 days. 33:49 33 minutes, 49 seconds Uh absolute number of receivables as well as payables is about 120 crores. 33:55 33 minutes, 55 seconds Okay. And payables roughly 83 crores. 34:04 34 minutes, 4 seconds Okay. And also sir we get some income from but if you have a followup question please rejoin the queue. Thank you. Our 34:14 34 minutes, 14 seconds next question comes from the line of Kalashar from IO research. Please go ahead. 34:21 34 minutes, 21 seconds Um hi thanks for taking our question. Um I've got one question. So uh sure we've taken initiatives on backward 34:28 34 minutes, 28 seconds integration as well as cost control. Uh so these are ongoing. So once this initiives are executed uh how do we see 34:35 34 minutes, 35 seconds the margins panning out uh on the AIDA level from current levels of 16%. 34:42 34 minutes, 42 seconds uh so I've mentioned this in the past that we believe that we should be in the low 20s uh on in fact 34:50 34 minutes, 50 seconds in this year uh had we had hydra supply we would be closer to most or slightly more than fact than 18% of uh so with uh 35:00 35 minutes back you know with the supply rather coming back and uh with uh with other further cost the project another s but 35:08 35 minutes, 8 seconds your voice is breaking Sorry. Okay. I I'll So yeah, like I said before, um we 35:16 35 minutes, 16 seconds are are toward the low 20s in the in the very short, you know, foreseeable future. uh 35:23 35 minutes, 23 seconds this year itself while we reported you know 18%. uh we would have been closer to 18 or slightly more than 35:31 35 minutes, 31 seconds um the uh we we had supply of hydra and uh with the further cost measures and further utilization of our 35:39 35 minutes, 39 seconds furnaces I think we'll we we we see a clear road map to low 20s uh and then you know we'll try and 35:47 35 minutes, 47 seconds further but uh low 20s is what I see on the horizon got it uh sure uh thanks and all the 35:56 35 minutes, 56 seconds rest for the coming Thanks. Thank you. 35:59 35 minutes, 59 seconds Thank you. Our next question comes from the line of Raam Jen from VVD Asset Managers. Please go ahead. 36:06 36 minutes, 6 seconds Yeah. Hi uh uh [clears throat] uh good evening. So I have uh this question on glassware with 90% utilization. 36:16 36 minutes, 16 seconds Are we optimized in terms of margins? uh uh and I think initially we were of the 36:24 36 minutes, 24 seconds view that uh glassware margin would be very similar to balware. Uh so just uh any uh any comments on this? 36:34 36 minutes, 34 seconds Yeah. So I'll answer this in in in a few senses. uh as far as as far as our production is concerned, having now run this production for a couple of years, 36:43 36 minutes, 43 seconds we've identified areas where we can further cut costs um and reduce uh you know mainly fuel costs and that's 36:52 36 minutes, 52 seconds something we are working on and I believe that we should be able to further bump up margins by reducing those costs. uh uh over and above that 37:00 37 minutes the solar project that we have uh now doing will will definitely improve glassware margins because that feeding uh the the the cost of energy we are 37:09 37 minutes, 9 seconds paying is still very high for our glassware production line and that will that will reduce reasonably substantially 37:17 37 minutes, 17 seconds over and above that as we achieve uh so our focus in the first two years of this glassware furnace was to sell the entire 37:25 37 minutes, 25 seconds capacity across various segments which I believe that the team's done a fantastic job to achieve. Having achieved that 37:34 37 minutes, 34 seconds there are there is scope for cutting off maybe you know some areas um and adding 37:41 37 minutes, 41 seconds more profitable products. So that is some scope there but that probably will happen not next year the year after. I think that's more of a scope to happen 37:48 37 minutes, 48 seconds the year after. But the the glassware margins are very attractive. Um and while they're not at opalware margins 37:55 37 minutes, 55 seconds yet, I I still stand by my statement that in the next uh two years we probably will achieve or surpass the opal web margins. I'm I'm quite confident about that. 38:06 38 minutes, 6 seconds So uh just on the all the three divisions if you look at independently you don't get margins but uh given that 38:14 38 minutes, 14 seconds glassware uh you will have uh with brownfield and the product mix improving uh margin should improve opalware also 38:23 38 minutes, 23 seconds with not much of capacity the premiumization journey should uh keep happening there so there also margin should improve and in non-glassware 38:32 38 minutes, 32 seconds um with hydra coming in which is a significant portion of non-glass there there also margin should improve. So so basically uh there should be like as 38:41 38 minutes, 41 seconds cable asked in the previous question um this should happen in the next two years is how one should think about. 38:48 38 minutes, 48 seconds Yeah. So as far as opalware and glassware is concerned I'm very confident of you know happening immediately like in the you know very 38:55 38 minutes, 55 seconds foreseeable future. uh hydra I I I would still say we would need to it's the first time we're producing it and uh we 39:04 39 minutes, 4 seconds would need to see how quickly we can ramp up the production output as well as the efficiency. So being very honest uh rather than just give a rosy picture and 39:11 39 minutes, 11 seconds say margins will improve we need to be realistic. So uh our eye will be very closely on that ball over there. But uh 39:19 39 minutes, 19 seconds uh yes logically having manufactured the product that it should give you manufacturing margin versus uh quote unquote trading margin. So therefore 39:28 39 minutes, 28 seconds definitely there should be a structural improvement in margin but I don't want to comment on that till I see you know proof of pulling has to be in the eating. So I want to see it 39:38 39 minutes, 38 seconds and the last one is with respect to the um non-glassware business. If I look at Hydra deg growing by 30% which is a good 39:47 39 minutes, 47 seconds portion of the business the other part the appliances and the cookware seems to have grown at maybe 3x faster than the 39:55 39 minutes, 55 seconds industry. So what has led to this growth and will you be able to sustain this growth in uh coming year as well? Yeah, 40:02 40 minutes, 2 seconds I I already said that that you know our stainless steel range and our uh appliances have done phenomenally well um before and they have been growing uh 40:10 40 minutes, 10 seconds you know at really good rates and we are still scratching the surface of this industry both for appliances as well as for the serving the serveware cookware 40:20 40 minutes, 20 seconds you know stainless steel products uh so I don't see that other players or their growth because those players are much bigger than us and therefore you know 40:28 40 minutes, 28 seconds the overall market growth has a bearing on their growth whereas we are too small and therefore we still can grow even if the overall market is not growing that rapidly you know with innovation and with things we're doing at the margins. 40:39 40 minutes, 39 seconds So um I don't see that at least for the next 2 three years being a challenge and we should be able to grow independently of the overall growth rate of the 40:47 40 minutes, 47 seconds market. Obviously as we hit bigger and bigger size then the overall growth rate doesn't matter but at at this moment I don't think at least in the short run it's going to impact us much. 40:57 40 minutes, 57 seconds Okay perfect. Thank you so much and all the best. Thank you. 41:01 41 minutes, 1 second Thank you. Participants who wish to ask a question may press star and one on the touchstone telephone. 41:10 41 minutes, 10 seconds Anyone who wishes to ask a question may press star and one on the touchstone telephone. 41:19 41 minutes, 19 seconds Okay. If if we're done then I think uh I just want to wrap up by saying thank you all for you know your questions and your active participation. uh we remain very 41:28 41 minutes, 28 seconds confident about the future at Boris Limited. We we remain extremely bullish on India and the you know trends we are 41:36 41 minutes, 36 seconds seeing in the market moving towards glass moving towards healthier options uh moving towards you know stainless 41:43 41 minutes, 43 seconds steel and we also are very committed to making India. We believe that India is a great place to manufacture and uh the 41:52 41 minutes, 52 seconds the change in policies for solar have been uh you know absolute gamecher from a production cost perspective because 42:00 42 minutes cost of energy is reducing in the country and plus uh the costs of transportation and you know other overhead expenses are also reducing. So 42:09 42 minutes, 9 seconds I think uh it's going to be a great uh next 5 years and you know we look forward to be a part of that journey. So 42:17 42 minutes, 17 seconds thank you very much and uh see you after one quarter. 42:22 42 minutes, 22 seconds Thank you on behalf of ICICI Securities Limited. That concludes this conference. 42:27 42 minutes, 27 seconds Thank you for joining us and you may now disconnect your lines.