Cera Sanitaryware Limited — Q4 FY26

Cera Sanitaryware Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=MwLOMSQqoBo Published: 2 days ago

0:03 3 seconds Ladies and gentlemen, good day and welcome to the earnings conference call of Sarah San. 0:10 10 seconds As a reminder, all participant lines will be in the listen and there'll be an opportunity for you to ask questions after the presentation concludes. Should 0:19 19 seconds you need assistance during this conference call, please signal an operator by pressing star then zero on your touchstone phone. 0:27 27 seconds Please note that this conference is being recorded. 0:31 31 seconds I now in the conference Mr. Dishi Singh of CDR India. Thank you and over to you Mr. 0:38 38 seconds Good morning everyone and thank you for joining us on the earnings conference call for Sarah Sanitiva Limited for Q4 0:46 46 seconds FI26 earnings which were announced yesterday. 0:52 52 seconds We have with us today the management team comprising Mr. Mr. Vikas Kotari CFO and Mr. Deepak Kyodri VP finance and investor relations of SA planetaryware. 1:04 1 minute, 4 seconds We will start with brief opening remarks from the management following which we will open the call for Q&A. 1:12 1 minute, 12 seconds A quick disclaimer before we begin. Some of the statements made in today's conference call may be forwardlooking in nature and a detailed note in this 1:20 1 minute, 20 seconds regard is contained in the results documents that have been shared with all of you earlier. 1:27 1 minute, 27 seconds I would now turn the call over to the management for their opening remarks. Thank you and over to you Deepak. 1:34 1 minute, 34 seconds Thank you Dish. 1:37 1 minute, 37 seconds Good morning everyone and a warm welcome to you all for joining us for the Q4 and full year FI26 earnings conference call of Sarah Canetry Limited. 1:50 1 minute, 50 seconds I will begin by sharing a brief overview of our operational and strategic developments during the quarter following which our CFO Mr. Vikas Kotari 2:00 2 minutes will take you through the financial performance in greater detail. 2:06 2 minutes, 6 seconds During the quarter, the company delivered an improved performance with revenues growing in double digits at 11.4% on a year-on-year basis. 2:17 2 minutes, 17 seconds Pan and Pent accounted for 46% and 43% of the revenues respectively during the quarter. 2:27 2 minutes, 27 seconds This performance further builds on the early signs of recovery that we had started witnessing from Q3 and reinforces our confidence that demand conditions are gradually improving. 2:38 2 minutes, 38 seconds Importantly, this improvement is being led by our core product categories where we are seeing relatively better traction given our strong positioning in the mass and mid segments. 2:52 2 minutes, 52 seconds From a broader perspective, the underlying drivers for the building material sector continue to remain supportive. 2:59 2 minutes, 59 seconds We are seeing a more balanced recovery across segments with traction in both urban markets and select tier 2 and tier three regions. 3:08 3 minutes, 8 seconds This is encouraging for our core product categories as demand conditions continue to stabilize. 3:15 3 minutes, 15 seconds During the quarter, we implemented a calibrated price revision across faucetware and sanitary wear effective from March 1st, primarily to offset the 3:24 3 minutes, 24 seconds increase in input costs, particularly in brass. 3:29 3 minutes, 29 seconds Going forward, we expect continuous volatility in the key input prices including metals and energy costs over the near to medium term. 3:41 3 minutes, 41 seconds While these pricing actions have undertaken have been undertaken in a measured manner, we continue to maintain a balanced approach keeping in mind both 3:49 3 minutes, 49 seconds margin protection and market competitiveness. 3:55 3 minutes, 55 seconds Pricing decisions will remain dependent on movements in input costs and overall demand conditions. 4:03 4 minutes, 3 seconds On the margins front, we have continued to see some pressure during the quarter with margins remaining below our normal range largely on account of higher input 4:11 4 minutes, 11 seconds costs as well as on account of continued trade discounts. 4:15 4 minutes, 15 seconds We have already compensated for the higher costs by increasing prices in both sanitary wear and ware segments. 4:24 4 minutes, 24 seconds As operating conditions stabilize, we expect to progressively regain better control over discounts which should support a steady improvement in margins over time. 4:36 4 minutes, 36 seconds The company ident identified certain focus markets mainly the northeast, West Bengal, 4:42 4 minutes, 42 seconds Uttarakhan, Bihar, Tamil Nadu, Madhya Pradesh, Jharkan, Goa, 4:49 4 minutes, 49 seconds Chhattaskkar and Odisa as a part of its growth strategy initiated some time ago. 4:55 4 minutes, 55 seconds Continuous efforts undertaken across these regions sustained distribution and market interventions have contributed meaning meaningfully to the growth achieved by the company so far. 5:09 5 minutes, 9 seconds From a portfolio perspective, FI26 has been an important year in strengthening our overall grand architecture 5:16 5 minutes, 16 seconds particularly through our initiatives under Senator and Poly Plus. 5:22 5 minutes, 22 seconds Both brands have made steady progress during the year with key building blocks now largely established across product 5:28 5 minutes, 28 seconds portfolio, team structure, distribution and market presence. 5:35 5 minutes, 35 seconds Under Senator, we have successfully expanded our retail footprint with 40 flagship stores operational during the year and are targeting to scale this up to 60 stores by next financial year. 5:47 5 minutes, 47 seconds Under Poly Plus, we have onboarded 102 distributors and 1120 dealers, 1120 5:54 5 minutes, 54 seconds dealers during FI26 with a target to expand the network to 200 distributors and 2,000 dealers by the end of FI27. 6:07 6 minutes, 7 seconds These initiatives are currently in the investment and brand building phase where the focus remains on strengthening positioning, expanding reach and building long-term brand equity. 6:19 6 minutes, 19 seconds Given the nature of this phase, we expect the outcomes to play out progressively over time with a more visible contribution to growth as these initiatives scale up. 6:29 6 minutes, 29 seconds With the foundational elements now largely in place, our focus will increasingly be on strengthening execution and driving progressive scale up on over the coming periods. 6:41 6 minutes, 41 seconds Backed by a strong leadership team and relevant industry experience in building established plans, we remain confident about the long-term potential of these initiatives. 6:53 6 minutes, 53 seconds At the same time, as we continue to invest in these emerging brands, the core Ser brand remains central to our growth strategy and continues to be the 7:02 7 minutes, 2 seconds primary driver of volumes and overall business performance. 7:07 7 minutes, 7 seconds As mentioned earlier, we are seeing improved traction in this segment supported by gradual recovery in retail demand as well as continued momentum in the project business. 7:20 7 minutes, 20 seconds Terux is also gradually strengthening our presence in the premium and contemporary segment supported by an expanding product portfolio and improving market visibility. 7:30 7 minutes, 30 seconds Given a strong positioning across our core segments, we expect a significant part of the growth going forward to be driven by the core SAR brand where we 7:39 7 minutes, 39 seconds have established scale distribution reach and strong brand recall. 7:46 7 minutes, 46 seconds On the brand and marketing front, we are strengthening our overall communication strategy with a sharper focus on enhancing brand visibility across segments. 7:55 7 minutes, 55 seconds During FI26, our marketing and publicity spends stood approximately at rupees 49 crores and we expect this to increase in 8:04 8 minutes, 4 seconds FI27 as we step up our brand building initiatives across key channels. 8:12 8 minutes, 12 seconds We are working towards rolling out a series of focus campaigns across digital, social and on ground platforms. 8:19 8 minutes, 19 seconds This will include the introduction of a new brand ambassador which we expect to announce in the near term and which we believe will further enhance brand 8:27 8 minutes, 27 seconds visibility and engagement across the key markets. 8:33 8 minutes, 33 seconds Overall, these initiatives are aimed at strengthening our brand positioning and supporting our growth strategy going forward. 8:41 8 minutes, 41 seconds In addition, we have been strengthening our brand visibility through strategic franchisee and institutional tie-up with leading consumerf facing brands across 8:48 8 minutes, 48 seconds India. These include association with well recognized names such as McDonald's, Deost Complex, JSW1 Homes, 8:57 8 minutes, 57 seconds Shelby Hospitals, Federal Bank and other prominent brands across sectors. 9:06 9 minutes, 6 seconds From a supply side perspective, as most of you are aware, the industry has been witnessing disruptions in part of the in parts of the unorganized sector, 9:14 9 minutes, 14 seconds particularly in Mob due to gas availability challenges arising from the ongoing geopolitical situation. 9:21 9 minutes, 21 seconds In response to this environment, we are increasingly uptaking internalization of undertaking internalization of certain 9:28 9 minutes, 28 seconds sanitary product categories which is expected to enhance supply reliability and strengthen our ability to cater to demand requirements more efficiently. 9:39 9 minutes, 39 seconds While gas prices remain elevated and are unlikely to ease in the near term, Sarah has remained relatively uninsulated from these disruptions. 9:49 9 minutes, 49 seconds This is supported by a continued gas sourcing arrangement including suppliers from Gale at relatively subsidized rates which have ensured operational continuity. 10:01 10 minutes, 1 second In addition, we have been able to effectively service demand through our existing inventory levels and manufacturing capabilities enabling us 10:08 10 minutes, 8 seconds to maintain supply in a market where several payers have faced disruptions. 10:15 10 minutes, 15 seconds This has also provided an opportunity to liquidate inventory and support optic during the period leading to improved demand visibility. 10:27 10 minutes, 27 seconds Overall, while the external environment remains challenging, we are well positioned to navigate the current situation without any material disruption to production or supply in the near term. 10:37 10 minutes, 37 seconds At the same time, we continue to closely monitor the situation and remain focused on ensuring operational stability and responsiveness across our network. 10:49 10 minutes, 49 seconds On the operations front, we continue to focus on improving manufacturing efficiencies and strengthening our supply chain. 10:56 10 minutes, 56 seconds In Posit, we continue to witness strong with operations running at high utilization levels. During March 2026, 11:04 11 minutes, 4 seconds we manufactured 4.3 lakh pieces reflecting a healthy demand momentum. 11:10 11 minutes, 10 seconds In view of the strong demand visibility, we undertaking capacity expansion to increase the production capacity to five lakh pieces per month with minimum capex outlay of approximately 5 crores. 11:22 11 minutes, 22 seconds We enhanced capacity expected to become operational from Q4 FY27 onwards. 11:30 11 minutes, 30 seconds To summarize, while the near-term environment continues to present certain challenges, we are seeing gradual improvement in demand conditions 11:38 11 minutes, 38 seconds supported by a strong market positioning and execution focus. 11:43 11 minutes, 43 seconds Importantly, we are beginning to see early signs of strengthening across key demand drivers. And as these trends sustain, we expect this to translate 11:51 11 minutes, 51 seconds into more visible growth momentum over the coming periods. Our priority remains on disciplined execution, strengthening 11:58 11 minutes, 58 seconds our operating fundamentals, and building a robust platform for future growth. 12:04 12 minutes, 4 seconds With a strong balance sheet, diversified product portfolio, and continued investments across brands, channels, and systems, we believe that we are well 12:12 12 minutes, 12 seconds positioned to navigate the current environment and capture growth opportunities as demand conditions continue to improve over time. 12:24 12 minutes, 24 seconds With this I would like to hand over to Mr. Vikas Kotari to run me through the financials of the company. 12:32 12 minutes, 32 seconds Thank you Deepak and a very good morning to everyone. I will now take you through a brief overview of the company's financial performance for the quarter and year ended 31st March 26. 12:45 12 minutes, 45 seconds Revenue from operations for the quarter stood at rupees 644 crores as compared to rupees 578 crores in Q4 FY25. 12:57 12 minutes, 57 seconds AITA excluding other income for the quarter was at rupees 98 crores as compared to rups 106 crores in the 13:07 13 minutes, 7 seconds corresponding quarter of the previous year. 13:11 13 minutes, 11 seconds Cabita margin stood at uh 15.2%. 2% in Q4 FY26 as compared to 18.3% in Q4 FY25. 13:23 13 minutes, 23 seconds This decline was primarily driven by continued pressure on gross margins led by elevated brass input cost and higher trade discounts. 13:35 13 minutes, 35 seconds Margins were also impacted by pre-operative expenses related to the senator and poly plus fortnights. 13:44 13 minutes, 44 seconds Gas cost during the quarter remained stable with the weighted average cost at rupees 35.55 13:52 13 minutes, 52 seconds per cubic meter in Q4 FY26 as compared to rupees 36.03 03 per cubic meter in Q4 FI25. 14:04 14 minutes, 4 seconds During the quarter, gas consumption was sourced 64% from Gale and 36% from Sabamati. 14:14 14 minutes, 14 seconds Overall gas cost as percentage of revenue stood at 2.3%. 14:22 14 minutes, 22 seconds Input cost particularly brass continued to remain at elevated levels while other 14:28 14 minutes, 28 seconds input costs such as play also witnessed some upward movement during the period. 14:36 14 minutes, 36 seconds In the response to this these sustained cost pressures, the company implemented calibrated price revisions of 4% in 14:45 14 minutes, 45 seconds sanitary wear and 11% in faucet wear towards the later part of the quarter. 14:53 14 minutes, 53 seconds These revisions were largely applicable to the retail segment while project business remained relatively insulated due to pre-ooked orders. 15:03 15 minutes, 3 seconds This approach is intended to balance margin protection with market competitiveness. 15:10 15 minutes, 10 seconds For the quarter under review, revenue contributions by segment was broadly as follows. Sanitary at 46%, 15:20 15 minutes, 20 seconds faucet wear 43%, times at 9% and wellness at 2%. On a Y basis, 15:29 15 minutes, 29 seconds wear revenue grew by 10.7%, faucet wear by 24.3%, wellness by 31.2% 15:38 15 minutes, 38 seconds while tiles declined by 8.3%. 15:43 15 minutes, 43 seconds Our core categories sanitary wear and faucet wear together accounted for 89% of the total revenues. 15:52 15 minutes, 52 seconds Capacity utilization during the quarter stood at 60 70% for sanitary wear and 106% for fetware. 16:06 16 minutes, 6 seconds From a product mix perspective, 41% of sales were from premium segment, 38 from 16:13 16 minutes, 13 seconds mid segment and 21% from entry- levelvel products. Geographically tier three 16:22 16 minutes, 22 seconds cities accounted for 40% of sales followed by tier 1 at 36% and tier 2 at 24%. 16:32 16 minutes, 32 seconds Profit after tax stood at rupees 77 crores as compared to rupees 86 cr in the corresponding quarter of the 16:40 16 minutes, 40 seconds previous year. Earnings per share for the quarter is stood at rupees 59.96 compared to rupees 66.36 16:50 16 minutes, 50 seconds in Q4 FY25 on the working capital front 16:59 16 minutes, 59 seconds we continued to see improvement across key parameters during the quarter with inventory days decreasing from 79 days 17:07 17 minutes, 7 seconds to 71 days receivables reducing from 37 days to 33 days while payables stretched 17:15 17 minutes, 15 seconds from 38 days to 40 days. This resulted in a YI reduction in net working capital from 78 days to 64 days. 17:27 17 minutes, 27 seconds As of March 31st March 26, our cash and cash equivalents is stood at rupees 853 kores. 17:38 17 minutes, 38 seconds On capital expenditure front, the capital expenditure for FY26 remained 17:45 17 minutes, 45 seconds measured with an outlay of around rupees 14.5 crores by end of March 26. 17:53 17 minutes, 53 seconds This was largely directed towards routine maintenance along with selective investments towards strengthening our brand presence and retail initiatives. 18:04 18 minutes, 4 seconds Overall, our financial position remains healthy, supported by a strong balance sheet, disciplined cost management, and prudent working capital practices. 18:14 18 minutes, 14 seconds While the operating environment continues to be impacted by input cost pressures, the steps taken during the 18:21 18 minutes, 21 seconds quarter, including uh calibrated price revisions and a continued focus on cost efficiencies, 18:30 18 minutes, 30 seconds position us well to navigate near near-term challenges. 18:35 18 minutes, 35 seconds We remain focused on maintaining financial discipline while continuing to invest selectively in strategic 18:42 18 minutes, 42 seconds initiatives and believe this approach should support study and sustainable performance going forward. With this I 18:51 18 minutes, 51 seconds would like the moderator to open the lines for quering. Thank you very much. 18:58 18 minutes, 58 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press R and one on Dashton telephone. 19:09 19 minutes, 9 seconds If you wish to remove yourself from the question queue, you may press R and do two. 19:13 19 minutes, 13 seconds Participants are requested to use handsets while asking a question. 19:18 19 minutes, 18 seconds Ladies and gentlemen, we will wait for a moment while the question Q assembles. 19:24 19 minutes, 24 seconds Participants, you may press R and one to ask a question. 19:34 19 minutes, 34 seconds The first question is from the line of Prain Sahai from PL Capital. Please go ahead. 19:39 19 minutes, 39 seconds Yeah. Hi sir and uh thank you for opportunity and many congratulations for good set of numbers. Uh the first question is uh related to the demand. uh 19:48 19 minutes, 48 seconds so if I if I look at that's from a Q3 to Q4 uh and uh we can clearly see that the 19:55 19 minutes, 55 seconds retail uh has done better in the Q4 and also in the you know commentary and opening statement you had said that's 20:02 20 minutes, 2 seconds the retail channel has uh increasing recovery uh you know and there so uh how 20:10 20 minutes, 10 seconds you are going to see in the FY27 uh the retail because the retail has been a quite a muted for a past few 20:18 20 minutes, 18 seconds quarters now we started seeing some improvement. So how you are going to see the growth in the retail the way forward and second thing is on the institution 20:27 20 minutes, 27 seconds contribution because institution contribution has also increased in the last four years from 32 to 38% with a good growth. So where you see the 20:36 20 minutes, 36 seconds balance between institution and the retail in the coming years uh thank you. 20:45 20 minutes, 45 seconds uh like uh I'll just take you through the journey of uh how the uh progress in demand has been over the last couple of 20:51 20 minutes, 51 seconds years like uh if you see we had entered a phase of sluggish demand from Q3 of 20:58 20 minutes, 58 seconds FY23 at 2324 uh during that period uh the uh the project demand continued to remain 21:07 21 minutes, 7 seconds strong but retail has entered into a sluggish kind of a situation uh since uh Q3 of uh the current financial year we 21:14 21 minutes, 14 seconds started seeing a uh improvement in the retail demand and uh we saw this sustaining through Q4 also uh in the 21:23 21 minutes, 23 seconds current uh if we see the month of April also we have seen a good uh surge in the retail uh it has continued in the current quarter also uh so we are 21:32 21 minutes, 32 seconds hopeful that uh going forward uh the kind of demand recovery that we have seen in the retail segment should 21:39 21 minutes, 39 seconds continue in the uh full year of FI27 and uh the kind of more traction that we 21:46 21 minutes, 46 seconds are seeing in project u that uh we'll find that it has increased from uh something like 30% what it used to be 21:52 21 minutes, 52 seconds earlier a couple of years back to 35% and then now to something like 39 40%. 21:58 21 minutes, 58 seconds Uh with the improvement in retail demand we expect that this percentage should now remain stable. Uh so going forward uh we expect that uh the proportion of 22:06 22 minutes, 6 seconds retail and project uh should now be uh remaining uh stable at 60% for retail and 40% for the project business. Uh on 22:15 22 minutes, 15 seconds an overall growth perspective we have started seeing improvements in volume and uh going forward we expect that 22:23 22 minutes, 23 seconds there should be good traction in the u volume in both the finet 22:31 22 minutes, 31 seconds segment. We have been even in the period where uh the demand used to be sluggish. 22:35 22 minutes, 35 seconds We have consistently seen uh improvements in the faucet ware demand. 22:39 22 minutes, 39 seconds Uh going forward in FY27 we expect that faucet w should continue to grow at 10 to 12% in volumes and connect should be 22:48 22 minutes, 48 seconds in the range of you can say 7 to 8%. uh in FIA 27 also. 22:54 22 minutes, 54 seconds Okay. So uh so that's 7 to 8% or 10 to 12% is a volume growth what you are indicating for 23:03 23 minutes, 3 seconds correct. Uh next question is related to the price uh because the last quarter also you indicated 4% in the symmetry 23:10 23 minutes, 10 seconds and 11% in the fosset uh but eventually uh we we uh indicated that from the March onwards we started uh seeing the 23:20 23 minutes, 20 seconds gradual uh price increase. So what what challenges uh basically you had faced especially in the uh taking the price 23:28 23 minutes, 28 seconds hike because the brass prices has been uh quite a higher for a last uh you know couple of quarters back but the price 23:36 23 minutes, 36 seconds hike has been uh you know first announced and now uh in the March actually has been uh taken uh one and 23:44 23 minutes, 44 seconds the second is related to the prices how much more as you had indicated also that's the elevated the brass prices is maintaining and also the clay prices has 23:53 23 minutes, 53 seconds increased. How much more price hikes you expect it to take to maintain your margin guidance of a 14% round? 24:03 24 minutes, 3 seconds Uh you're right that uh the the input situation has been challenging in the last one quarter or so it's especially in light of the uh geopolitical 24:12 24 minutes, 12 seconds situation which developed in the month of February. Uh now uh brass prices have started moving upwards even before that 24:20 24 minutes, 20 seconds and uh in the last uh 3 4 months it has gone up from something like uh late uh 600 to early 700 uh from that it has 24:29 24 minutes, 29 seconds gone up to something like uh 800 to 850 uh which is at right now 24:36 24 minutes, 36 seconds uh if I see on a yearon-year basis there would have been an increase of something like 29 30% in the brass prices. uh now 24:44 24 minutes, 44 seconds effectively we have taken a price increase of 11% in the month of March uh in the month of April we have taken a a 24:52 24 minutes, 52 seconds search charge of 10% in the case of sanitary wear and 5% in the case of fet wear and now again we have taken a price 25:00 25 minutes increase of 8% in the case of sanitary wear and 5% in the case of uh uh fet we have removed the search charge and we 25:08 25 minutes, 8 seconds have gone in for a price increase so effectively over a period of uh you can say two months we have taken a price increase of 12% in the case of sanity wear and 16% in the case of facet web. 25:21 25 minutes, 21 seconds Now these prices are only affective on the retail uh portion uh and for the 25:28 25 minutes, 28 seconds projects uh the prices I'm expected to like as per our norms they remain stable for the period of one year from the time that we uh it is booked into our system. 25:38 25 minutes, 38 seconds So on an average if I assume that uh the projects would be starting and would be completing and there would be a six month kind of an average uh wherein the 25:47 25 minutes, 47 seconds new price effect would take place uh in the case of projects. So we can expect this uh kind of uh price uh change to 25:55 25 minutes, 55 seconds start reflecting in the project business from let's say in another uh five to 6 months but retail it has already been implemented and uh the impact will be 26:04 26 minutes, 4 seconds visible from the uh like it is already visible from March and it will all be visible in Q1 uh more because it will be 26:11 26 minutes, 11 seconds a full kind of a quarter where the price rings have remain affected. Now in respect of as to how well we have been able to cover our rises in price uh 26:20 26 minutes, 20 seconds you'll find that uh in case of brass we have more or less been able to cover the kind of price increases uh with the kind 26:28 26 minutes, 28 seconds of price increases that we have taken slight deviation is there we have to absorb some kind of uh uh price increase in the brass uh typically if I see if 26:37 26 minutes, 37 seconds you see like I said that uh the price increase has been 30% over the last one year and if I assume that it constitutes 26:44 26 minutes, 44 seconds something like 60% of my uh brass constitute 60% of my cost. So the effective impact uh on my cogs would be 26:52 26 minutes, 52 seconds in the region of 18%. And I've taken a price increase of 16%. So that is still a kind of one or 2% uh which is left as 27:00 27 minutes a gap between the pricing and the uh kind of price increase cost increase which has happened in the case of brass. 27:06 27 minutes, 6 seconds But that we intend to calibrate by way of uh uh discount controls which we are expecting that uh now that the demand 27:13 27 minutes, 13 seconds has started recovering uh we'll see uh better uh discounts management going forward that uh couple of percentage 27:20 27 minutes, 20 seconds points that we still lagging behind in the case of price increase should be kind of made up by way of uh uh better 27:28 27 minutes, 28 seconds discount management. In case of sanitary where uh the clay etc has increased but 27:35 27 minutes, 35 seconds the bulk of the price impact comes in on account of uh gas uh like most of the players in Mori have been severely 27:44 27 minutes, 44 seconds impacted because of the rise in the kind of uh kind of rises which have happened in the uh prices of gas and also uh in 27:52 27 minutes, 52 seconds the month in the quarter coming quarter we expect that uh even though Modi plants have started opening up uh typically The first quarter is in the 28:01 28 minutes, 1 second case of Haneti were a little uh slow in the case of Muli because uh one especially little bit too more so in the 28:08 28 minutes, 8 seconds current quarter because uh even while they have started opening up uh most of the labor would have kind of gone uh 28:16 28 minutes, 16 seconds back home uh the time that the plants were closed and uh it'll be a gradual process by which the labor would come in and the plant would plants would start 28:24 28 minutes, 24 seconds opening up again. uh also that uh we find that during Q1 it is a monsoon period and uh during that period also 28:32 28 minutes, 32 seconds you'll find that the uh production in Mori in case of sanctuary remains slow. 28:38 28 minutes, 38 seconds So uh it will only be a uh so it will take some time uh beyond Q1 where you can expect that the Mi would be becoming 28:46 28 minutes, 46 seconds fully operational in case of sanitary work. uh so that uh is a kind of an opportunity for us because the players who are not having their own kind of 28:55 28 minutes, 55 seconds manufacturing facility and are sourcing mostly from Modi will find it going a little tough unless and until they have built up uh stocks heavily earlier on. 29:04 29 minutes, 4 seconds Uh so we anticipate that uh the current situation will be playing well for us going forward in Q1 and Q2. 29:14 29 minutes, 14 seconds Thank you so much for elaborative answer sir. Uh uh thank you for that. The last question from my side is uh related to 29:21 29 minutes, 21 seconds the brand because we had a uh did a lot of uh investment in the senator and the polylex in terms of the distribution and 29:29 29 minutes, 29 seconds the product uh last year. So uh if you can give me some color on how much of the revenue in the FY26 you had 29:37 29 minutes, 37 seconds generated from these brands and uh what's our target is there any revision in the target for the revenue for 27. 29:46 29 minutes, 46 seconds Okay. In case of senators and poly plus in in senator we generated revenue of in the region of 10 and a half crores in the full year FI26. 29:55 29 minutes, 55 seconds Uh in poly plus we generated something like 8 and a half crores. uh total these banks combined uh generate a total 30:03 30 minutes, 3 seconds revenue of 19 crores approximately and for FY27 we are projecting that senators should be able to generate roughly 40 45 30:12 30 minutes, 12 seconds crores and the poly plus would be in the range of 30 to 35 crores taken together should be giving us uh 30:21 30 minutes, 21 seconds roughly 70 to 80 crores and with the break even uh see the uh in the current quarter 30:30 30 minutes, 30 seconds like uh there was a kind of loss if we take into account the kind of publicity expenses that we have been putting in the going forward in the FI27 also we'll 30:39 30 minutes, 39 seconds have a lot of publicity will being carved out for this particular uh segment senator uh if I exclude the publicity expenses then uh we'll be 30:48 30 minutes, 48 seconds making a small profit uh but if I take in uh the publicity expenses also then uh it will be a little maybe not current 30:56 30 minutes, 56 seconds year but next year then we start uh making profits after taking into account all the publicity causes. 31:02 31 minutes, 2 seconds Thank you so much sir and all the best. Thank you. Thank you. 31:08 31 minutes, 8 seconds Participants you may press star and one to answer question. 31:15 31 minutes, 15 seconds Next question is from the man of Utkashani from Anandraati. Please go ahead. 31:22 31 minutes, 22 seconds Uh yeah hi uh good morning sir. Uh so my first question is uh regarding the uh uh revenue growth guidance for FI27. Uh 31:30 31 minutes, 30 seconds although like earlier you have mentioned that we are expecting sanitary wear volume uh to grow at 7 to 8% rate and 31:37 31 minutes, 37 seconds the faucet at 10 to 12% rate for FI27 and given the price hike which we have implemented uh in the last 2 three month 31:45 31 minutes, 45 seconds period. So is it fair to understand that we are targeting syntary where revenue to grow at a healthy team rate and 31:52 31 minutes, 52 seconds foretware revenue to grow at more than 20% rate for FI27. Sir, thank you for asking the question. So as 32:02 32 minutes, 2 seconds you have seen the last year being stressed in terms of different activities uh market conditions 32:09 32 minutes, 9 seconds geopolitical and all within those constraint situations also we have delivered the number of uh 2050 kores in 32:17 32 minutes, 17 seconds terms of the overall revenue. going forward based on the uh based on how the 32:24 32 minutes, 24 seconds uh market demand is uh uh uh is is doing uh we have seen that quarter 3 and 32:31 32 minutes, 31 seconds quarter four has built the confidence in terms of continuity of the upward trend. 32:37 32 minutes, 37 seconds So basis that we have we have uh uh we have estimated in terms of the uh 32:44 32 minutes, 44 seconds revenue growth which is going to be there for financial year 27. So with the demand trend continuing to grow upward 32:53 32 minutes, 53 seconds we expect the overall growth of around 18 to 20% next year. In this if I have 33:00 33 minutes to categorize by segment in sanity segment we expect 12% growth driven by 33:07 33 minutes, 7 seconds favorable volume impact of 7%. And price impact of 5 to 6%. Because uh we we are 33:14 33 minutes, 14 seconds like Deepak has explained it is a combination of both project and retail. 33:19 33 minutes, 19 seconds Retail will be uh uh will be uh will be driven by the price increase whereas in 33:26 33 minutes, 26 seconds case of projects uh pre-orders will be at the old rate and the new orders will be at the uh increase rates and 33:34 33 minutes, 34 seconds similarly in case of pair we expect a growth of 18% uh which is going to be driven by 33:42 33 minutes, 42 seconds favorable volume impact of 10 to 12% and price impact of 8%. So overall if we see 33:50 33 minutes, 50 seconds uh uh if you see today in terms of how the things are moving and uh how we have capitalized different scenarios uh 33:59 33 minutes, 59 seconds adverse scenarios into opportunities we expect that if such trend continues uh the overall growth will be between 18 to 20%. 34:09 34 minutes, 9 seconds Okay. 34:11 34 minutes, 11 seconds On the margin side in in your initial remarks it was. 34:18 34 minutes, 18 seconds Yeah. So yeah, please speak. 34:22 34 minutes, 22 seconds Yeah. So on the margin side like sir uh you have initially mentioned that uh uh we are uh trade discount which was going 34:30 34 minutes, 30 seconds on uh it is still continuing. uh to just wanted to understand like uh we are seeing a pretty good uh demand in the uh 34:37 34 minutes, 37 seconds uh good demand recovery in the retail segment uh uh and the supply side has also got impacted because of the gas 34:44 34 minutes, 44 seconds supply disruption uh so so why we are still continuing with the trade discounts. 34:49 34 minutes, 49 seconds No. So uh just to give you an understanding in terms of the margins. 34:54 34 minutes, 54 seconds So if you seen uh see for the whole year uh the uh uh keeping aside this recent 35:01 35 minutes, 1 second scenario of gas and all so margins were stressed reason for being the state discounts which were offered to meet out 35:08 35 minutes, 8 seconds the uh subdued demand they were keep on increasing. So uh with this Q3 onwards 35:16 35 minutes, 16 seconds we have seen that because in terms of discounts and all it is not a process that it can be immediately controlled. 35:22 35 minutes, 22 seconds It is a gradual journey. So this control like we told discount management will be controlled this year. We have already 35:29 35 minutes, 29 seconds started taking steps from Q1 onwards and this will further uh strengthen uh in the coming quarters. So as far as margin 35:38 35 minutes, 38 seconds decline is concerned, the two factors which has uh largely impacted the gross margin is the uh rise in the input costs 35:48 35 minutes, 48 seconds mainly the brass prices which has been elaborated uh how this has gone and it has gone by 29% which has now been 35:55 35 minutes, 55 seconds sufficiently taken care of through the price rise to offset the impact of increased cost and secondly the elevated 36:03 36 minutes, 3 seconds trade discounts. So these sales discounts are again the uh we we can correct it in the coming quarters. So if 36:11 36 minutes, 11 seconds you have seen uh the margins which are uh in Q4 they have seen an uplift uh from 10.2% in quarter 3 to 15.2%. 36:22 36 minutes, 22 seconds And we understand that with with the uh uh with the growth which is going right now uh uh uh in terms of uh the demand 36:31 36 minutes, 31 seconds aspect. So we see that if this this trend continues we will be able to sustain uh the AITA margins uh at around uh 14 to 15%. 36:45 36 minutes, 45 seconds Okay. And uh so like uh so so one uh uh question was regarding the capacity utilization. So if you can get some 36:53 36 minutes, 53 seconds sense what was the capacity utilization of our sanitary wear plant uh in March and April month and uh and uh uh uh do 37:01 37 minutes, 1 second you see any disruption in our uh sanitary operation uh uh uh uh say in in the June quarter period and uh uh what 37:09 37 minutes, 9 seconds kind of a sanitaryware inventory we were carrying at the end of March 26 and what is the status of our green field sanitary ware plant sir? 37:17 37 minutes, 17 seconds So uh regarding the capacity utilization so as we have rightly told in case of uh 37:24 37 minutes, 24 seconds uh uh sanity where uh in March we were we were operating at 70% of our total 37:31 37 minutes, 31 seconds capacity and in case of wear uh we were operating at 106% of our total capacity. 37:38 37 minutes, 38 seconds So ideally speaking in case of sanitary wear in the month of March we had an advantage in terms of uh the inventory 37:46 37 minutes, 46 seconds levels. So adequate inventory levels played a critical role in ensuring uninterpreted market supplies and meeting customer 37:55 37 minutes, 55 seconds demand during this period. And what has happened is in in March we have taken a decision uh to close one plane which was 38:04 38 minutes, 4 seconds temporarily shut down to manage the operational efficiency because at in March the uh visibility was very poor in 38:13 38 minutes, 13 seconds terms of gas supplies prices and all. So we have taken this as an opportunity and since we were having the inventories 38:20 38 minutes, 20 seconds built up. So that has been uh that has that has been uh uh uh uh that has proved as a favorable part in terms of 38:29 38 minutes, 29 seconds uh meeting out the uh customer demand and uh uh in in the month of April also 38:36 38 minutes, 36 seconds we have taken the decision uh to uh to remain closed with one claim. we will be 38:42 38 minutes, 42 seconds soon uh getting operational with the uh with the second claim and we hope that in terms of the demand and what is there 38:51 38 minutes, 51 seconds and there are uh certain products which we have taken internalized from more so I think this capacity which is running 38:59 38 minutes, 59 seconds at uh 70 75% will further improve in the coming months thank you may I request to come back for 39:08 39 minutes, 8 seconds a follow-up question please yes Thank you participants. You may press star and one to ask the question. 39:19 39 minutes, 19 seconds Next question is from the line of Vun Jalisa from 361 Capital. Please go ahead. 39:26 39 minutes, 26 seconds Yes sir. Thank you for the opportunity. 39:28 39 minutes, 28 seconds So for this quarter, how far was the growth driven by triite and how much was driven by volume uh for the Q4? 39:38 39 minutes, 38 seconds So largely if you see uh the success in terms of the growth which is there in this quarter is largely driven by 39:46 39 minutes, 46 seconds volume. So uh if you see that the growth which is driven by volume is almost uh uh just the numbers. 40:05 40 minutes, 5 seconds So uh largely it is driven by volume growth of uh 12% uh uh and with an improved product mix 40:13 40 minutes, 13 seconds of uh 3 to 4%. However, there was some adverse price impact of 3% because of 40:20 40 minutes, 20 seconds discounts and all what we discussed. So largely it is the volumedriven growth for the 40:27 40 minutes, 27 seconds and and sir sanitary uh and sorry and the faucet where sir how much capacity we incrementing you mentioned it but uh 40:34 40 minutes, 34 seconds we plan for 6 million right yeah no so uh uh uh just to give you an update in terms of uh how faucetware is 40:43 40 minutes, 43 seconds progressing. So with the brownfield expansion what we have taken earlier we have increased our uh uh capacity from 40:51 40 minutes, 51 seconds three lakh pieces per month to four lakh pieces and uh uh last year was a uh was a basically milestone where we have 41:00 41 minutes operated to uh reach out to four lakhs and uh in the month of March we have completed 4 lakh 30,000 pieces per month 41:10 41 minutes, 10 seconds and with the uh demand trend been going upward uh we are further increasing this 41:17 41 minutes, 17 seconds capacity from 4.30 lakh per unit to 5 lakh per unit by debottlenecking and by 41:24 41 minutes, 24 seconds putting some efforts within the uh uh within the brownfield setup what we have built earlier uh with a uh with a 41:32 41 minutes, 32 seconds minimum capex of around 4 to 5. 41:37 41 minutes, 37 seconds Okay sir, understood. And for sir our exposure to Mori like we also have fair bit of exposure on outsourcing. So uh 41:45 41 minutes, 45 seconds how much are we exposed to Modi and say other regions comparatively uh for our sanitary wear and fosetware requirement 41:54 41 minutes, 54 seconds uh that outsourcing percentage we always keep on disclosing. I'll just tell you the figures right now also what is the kind of proportion of outsourcing versus 42:02 42 minutes, 2 seconds announce uh in case of sanctity where uh you'll find that uh the outsourcing proportion in the Q4 uh was to the 42:11 42 minutes, 11 seconds extent of uh uh 60% and in case of proet which was to the tune of 57%. 42:21 42 minutes, 21 seconds Sorry 46%. 60% for sanitary wall and 46% for faucet ware. Now in the current 42:29 42 minutes, 29 seconds scenario as I was mentioning that uh in the Q four because of the kind of uh gas prices impact which has happened and 42:37 42 minutes, 37 seconds also the availability of gas which has became restricted in the month of March onwards. Uh we expect that sourcing from 42:46 42 minutes, 46 seconds in Q1 of the current financial year would be a little sketchy. uh and that is why it is mostly because of the fact that we have adequate inventories uh 42:55 42 minutes, 55 seconds that we'll be able to manage u the large portion of Q1 and also some portion of Q2 and that is why what we have also 43:02 43 minutes, 2 seconds done is that during this period we have also undertaken and drive for uh internalizing the kind of uh uh products which we are currently outsourcing from 43:11 43 minutes, 11 seconds Mori. Uh so those uh we should are expecting that should be available uh for sale uh from Q2 onwards. uh by which 43:19 43 minutes, 19 seconds time uh we have till which time we have adequate inventories within our uh within the company to take care of the any demand uh which is there for these 43:27 43 minutes, 27 seconds products but is the large part of this out outsourcing from Modi only or do we have like you know as far as I know there are 43:36 43 minutes, 36 seconds other suppliers in north and correct me it's a multiple source but it is mostly from Modi because uh the there 43:43 43 minutes, 43 seconds multiple suppliers mostly from South Modi okay Okay, thank you so much. That's it. 43:52 43 minutes, 52 seconds Thank you. 43:54 43 minutes, 54 seconds Next question is from the line of Bhavin Rupani from Investic India. Please go ahead. 44:00 44 minutes Uh yeah, hi sir, thanks for the opportunity. So first question on inventory. So you mentioned that you have inventory of one or two quarters. 44:08 44 minutes, 8 seconds Uh but if you look at our balance sheet, it shows somewhere around 70 days. So I'm assuming that some portion of that could be attributed to raw material cost 44:16 44 minutes, 16 seconds as well. So can you tell us trip out what is the finished good inventory that we have? 44:24 44 minutes, 24 seconds Uh the finished goods inventory uh as of 44:29 44 minutes, 29 seconds uh March 2026 was uh 303 crores as compared to December uh which was 365 44:38 44 minutes, 38 seconds crores. December 2025 was 365 crores. We ended March with 303 crores and at the end of April also we're in the same 44:46 44 minutes, 46 seconds region uh 300 crores roughly we are maintaining uh currently oh that is somewhere around one quarter 44:55 44 minutes, 55 seconds right sir no it doesn't function like that because we also manufacturing we are also manufacturing so manufacturing is also 45:03 45 minutes, 3 seconds continuing right now so we have certain inventory which is of manufacturing you have certain inventory of which is for outsourcing materials so as I mentioned 45:11 45 minutes, 11 seconds mentioned earlier the kind of outsourcing material that we have within the kind of entire kitty is adequate for taking kind of the forecast that we have 45:18 45 minutes, 18 seconds for the next uh two to three months so 3 months uh further we don't anticipate any challenge and by that time our internalization drive would start giving 45:27 45 minutes, 27 seconds us the kind of skills which were there from Mori and also it is not that Mi is entirely closed they will have problems and will not be able to give the kind of 45:36 45 minutes, 36 seconds materials which you were giving earlier the kind of demand projections which are there but they are still able to supply the kind of uh some amount of material 45:44 45 minutes, 44 seconds which will be coming in from Modi. So uh we are comfortable in respect of the entire situation if you see they're comfortable in respect of others. 45:55 45 minutes, 55 seconds All right and sir what I understand is our tiles is also completely outsourced. 45:59 45 minutes, 59 seconds So do we see any impact on tiles going ahead in Q1 Q2? 46:04 46 minutes, 4 seconds tiles will be impacted because in the month of March also later part of March because most of it is dependent upon uh outsourcing we were able to do some 46:13 46 minutes, 13 seconds amount of sales because some inventory was there with the suppliers but uh it is essentially totally driven by 46:19 46 minutes, 19 seconds outsourcing and uh if the plants do not open up and we are not able to get start procuring materials 46:27 46 minutes, 27 seconds from outside uh that t portion we expect that during Q1 will be impacted. 46:36 46 minutes, 36 seconds Okay, got it. Sir, sir, you spoke about uh Can I request you to come back please for a followup question? 46:49 46 minutes, 49 seconds Thank you, Babin. 46:51 46 minutes, 51 seconds In the interest of time, I'll request participants to kindly limit theelves to two questions per participant. 46:58 46 minutes, 58 seconds Next question is from the line of Pranov from Equest Securities. Please go ahead. 47:03 47 minutes, 3 seconds Uh yeah, good morning sir. Uh so I just wanted to understand uh if you can uh throw some light on the uh strategy for 47:11 47 minutes, 11 seconds both uh senator and poly for next uh let's say two to three years how you want to scale up this business and u how 47:18 47 minutes, 18 seconds the premiumization trend uh will be a key driver for this. 47:24 47 minutes, 24 seconds See as we have been mentioning in the earlier calls also that Poly plus will be the primary driver for the entry 47:31 47 minutes, 31 seconds segment. Uh this will be mostly a kind of uh brand which will be for the purpose of uh dural segment and the uh 47:41 47 minutes, 41 seconds areas which are uh more in the tier sport nature kind of a situation. Uh so we are uh already as I mentioned in my 47:50 47 minutes, 50 seconds call also earlier we have set up something like 100 distributors right now with 1,000 plus dealers and we intend to take it up to 200 distributors 47:59 47 minutes, 59 seconds and 2,000 uh dealers in the next financial year. uh for senators uh their idea would be that it will be more of a 48:07 48 minutes, 7 seconds a premium and luxury brand and that is why the concentration is more on opening brand stores uh flagship brand stores 48:13 48 minutes, 13 seconds across the uh across the country. Uh we have already opened something like 40 stores in the uh current year and we 48:21 48 minutes, 21 seconds intend to take it up to 60 in the next financial year. Uh also we are intending to uh apart from the retail presence 48:30 48 minutes, 30 seconds we're wanting to take a strong uh presence in the project segment also and we in intend to introduce uh separate uh 48:37 48 minutes, 37 seconds series uh project range for the senator brand. Uh that will be already in the process and should be there uh by you 48:45 48 minutes, 45 seconds can say another couple of months. Uh so apart from the retail uh will also be driving strongly in the uh project segment in the senator's uh portfolio. 48:54 48 minutes, 54 seconds Sure sir. And uh sir, after the price, are we at a level at level two which uh let's 49:04 49 minutes, 4 seconds say the other brand does or are we still uh slightly uh below them? 49:10 49 minutes, 10 seconds Uh typically the pricing of Terra has been uh on an MRP level been higher than what other brands have been. Uh so uh in 49:17 49 minutes, 17 seconds the current uh situation we have taken a price increase in line with our own uh cost structure. the kind of price increases that have happened. Uh the 49:26 49 minutes, 26 seconds other branded players have also taken uh similar price increases. Uh we'll find that the price increase more or less is in uh line uh with what others have 49:35 49 minutes, 35 seconds taken. It will be slightly you can say more for some brands, slightly less for some brands but it more of more or less because this is something which has 49:42 49 minutes, 42 seconds affected each and every uh player. uh you'll find that most of them have taken price increases in the line of uh you can say 16 to 18% in the case of faucets 49:51 49 minutes, 51 seconds and uh 10 to 12% in the case of sanitary web for most players and sir we are on the same line right 49:59 49 minutes, 59 seconds yeah on the same lines here yes thank you thank you 50:07 50 minutes, 7 seconds next question is from the line of Assam from DA Capital Advisors please go ahead hi morning uh so two questions from my 50:15 50 minutes, 15 seconds side. One uh on this uh FI27 uh revenue growth expectation. So you said sanitary 50:22 50 minutes, 22 seconds wear will grow 12%, faucets 18%. Then I can't understand how will your overall revenue growth be you know 18% or 20%. 50:31 50 minutes, 31 seconds So what explains the balance? 50:34 50 minutes, 34 seconds Yes sir. Regarding this part say we have given the broad uh understanding with respect to our major segments that is uh 50:43 50 minutes, 43 seconds sanetry and faucet wear. There are other uh uh other segments also within the pipeline. So we have tiles and CC. So 50:52 50 minutes, 52 seconds our understanding is that uh once this moi situation which is which has now started opening from May onwards will 51:00 51 minutes improve. So tiles we have tiles and construction chemicals they are going to contribute around uh 250 uh crores uh a 51:09 51 minutes, 9 seconds growth of uh 20 plus%. And with respect to the senator and poly plus our newly introduced brands they will be 51:17 51 minutes, 17 seconds contributing around 70 to 80 kores. So overall if you see uh uh uh in terms of 51:24 51 minutes, 24 seconds uh the overall revenue from all these that will lead to 18 to 20% growth next year. 51:34 51 minutes, 34 seconds Okay understood. Uh and the second bit uh so basically on numbers so uh quarterly employee costs in Q4 are down 51:42 51 minutes, 42 seconds QQ any reasons that you can attribute and what should be the quarterly run rate ahead and the capex number that you estimate for FI27 51:52 51 minutes, 52 seconds uh I didn't get your first part you're talking about the employee cost yeah the employee cost 59 crores uh for Q4 I think it's down about 1 2% Q I just 52:01 52 minutes, 1 second wanted to understand if there is anything you want to call out behind the decline No actually what had happened is that 52:08 52 minutes, 8 seconds typically if you see a expenditure which has been happening on a quarteronquarter basis it has been in the region of uh 65 crores uh so Q1 was roughly 65 crores Q2 52:18 52 minutes, 18 seconds was also 65 crores in Q3 uh once the wage uh code was announced uh we had taken uh certain assumptions that based 52:26 52 minutes, 26 seconds on the kind of uh liabilities which will be coming up uh there would be an additional expense of something like 5 crores and that is why you'll find that 52:34 52 minutes, 34 seconds there was an expense of 70 crores in the month of uh sorry in the quarter of uh Q3 but in the current uh quarter once we 52:42 52 minutes, 42 seconds have got a better understanding of the wage code and related laws and how it is going to be implemented uh we have taken 52:49 52 minutes, 49 seconds uh not only if you see that there's an exceptional item of 10 crores of uh right back wherein we had put in 52:57 52 minutes, 57 seconds something like 18 crores in Q3 uh for gratuty and PL liability uh whereas 53:04 53 minutes, 4 seconds Now we are taking in that liability would be only in the region of 7 and a half to 8 crores and so that there is a right back of uh 10 crores uh coming in 53:11 53 minutes, 11 seconds as an exceptional item. Uh similarly in the wage expenses also that during that period we had provided for certain expenses related to the wage code which 53:19 53 minutes, 19 seconds we are now anticipating will not be there. So that is why that uh expense of 65 crores which was 70 crores in the Q3 53:26 53 minutes, 26 seconds has now come back to u uh 60 crores in Q4. uh going forward uh we expect that 53:34 53 minutes, 34 seconds uh the employee expenses should increase in the range of uh 10% uh on the basis of normal wage hikes that and the 53:42 53 minutes, 42 seconds incremental uh the kind of salary increases that is normally there. Uh also in the case of 53:49 53 minutes, 49 seconds uh labor there might be some long-term settlement which is now pending uh which will uh impact the only the uh labor uh 53:58 53 minutes, 58 seconds portion the wage portion not the the salary cost. Uh how much that impact will come would be depending upon the negotiation which happens uh with the 54:07 54 minutes, 7 seconds workers and uh that impact should start coming in from uh that depending upon when that negotiation actually happens. 54:14 54 minutes, 14 seconds In respect of the capex uh program typically our uh capex is in the range of uh you can say 28 to 30 crores. Uh in 54:24 54 minutes, 24 seconds this uh particular year we are anticipating a total capex of something like 45 crores. Uh this uh includes uh 54:33 54 minutes, 33 seconds normal capex of uh roughly 25 crores which we typically do on a year-on-year basis. Uh roughly uh 5 crores is there 54:42 54 minutes, 42 seconds for the profitware expansion. I'm talking about within this uh 30 crores there is 5 crores for faucet expansion 54:50 54 minutes, 50 seconds and also another 15 crores has been uh budgeted for uh acquisition of some more office space uh that we'll be planning 54:58 54 minutes, 58 seconds to do in the current uh uh financial year that will be in the range of 15 crores. So total uh capex taking everything together a routine software 55:07 55 minutes, 7 seconds expansion of 5 crores and this uh office space acquisition of something like 15 crores would be in the region of 43.42 crores. 55:18 55 minutes, 18 seconds Okay. Thank you. Thank you. 55:25 55 minutes, 25 seconds Next question is from line of Sahai from PL Capital. Please go ahead. 55:30 55 minutes, 30 seconds Yes sir. Thank you for the followup. A small question from my sidew uh you have a 853 cr of a cash uh so uh what's the 55:40 55 minutes, 40 seconds uses uh way forward have you uh you know decided uh for that 55:47 55 minutes, 47 seconds so so ideally I think uh this is the question where which is asked every time so the idea is to communicate that uh 55:55 55 minutes, 55 seconds whatever the cash position on which we are sitting we are equally respecting in terms of distributions also 56:02 56 minutes, 2 seconds So uh this time if you have seen that uh we have uh given a healthy dividend declared a healthy dividend payout uh 56:11 56 minutes, 11 seconds which is now 75 rupees per share uh almost 1,500% of the face value. So that 56:19 56 minutes, 19 seconds is there. Apart from that uh in terms of uh uh the green field project uh which 56:27 56 minutes, 27 seconds we will evaluate as as we have seen the corrections are coming right now with respect to demand. So the right time of 56:35 56 minutes, 35 seconds startup of construction of the green field will be seen in the coming quarters. So uh there uh the est the 56:44 56 minutes, 44 seconds green field project was initially estimated at around 130 cr of which land portion has already been purchased that 56:51 56 minutes, 51 seconds is 27 cr and considering the 2 years inflation what is there. So our understanding is uh uh when we are going 57:00 57 minutes to construct the first phase if if if we conclude in terms of uh constructing this year 57:07 57 minutes, 7 seconds then it will be costing around 150 cr. So these are the current uh things which are in the pipeline. Apart 57:15 57 minutes, 15 seconds from the capex what we have shown as our routine or uh uh some incremental capacity expansion what we are doing 57:23 57 minutes, 23 seconds going forward we will evaluate the scenarios in terms of how the market is doing and accordingly we'll take action in terms of future investments. 57:33 57 minutes, 33 seconds So 150 apart from 27 cr on the land which you had already uh incur. Yeah. Yeah. 57:41 57 minutes, 41 seconds Okay, thank you sir and all the best. 57:43 57 minutes, 43 seconds Yeah, thank you. 57:48 57 minutes, 48 seconds Next question is from line of Karan Batilia from Asian market securities. Please go ahead. Hi, good morning. Am I audible? 57:56 57 minutes, 56 seconds Yeah. Yeah, we can hear you. 57:57 57 minutes, 57 seconds Yeah. Uh so I just wanted to understand uh what kind of launch expenses we've booked uh for senator and polyers in the 58:06 58 minutes, 6 seconds current year and what kind of numbers we can see for next 2 three years when we 58:12 58 minutes, 12 seconds want to have a bit of 2025 cr 2025% on this portfolio. 58:19 58 minutes, 19 seconds Uh in the current year the expenses in senator were mostly focused on opening the brand stores. uh so in the uh we 58:27 58 minutes, 27 seconds have spent something like 4 crores uh in the current year because uh this has expansion etc has started from let's say 58:34 58 minutes, 34 seconds after 3 months in the uh in start of the year so we have spent something like 4 crores over here in the period going 58:42 58 minutes, 42 seconds forward uh now that stores expand uh expansion has mostly happened like we've opened 40 stores in the current uh period we intend to go another 20 in the 58:50 58 minutes, 50 seconds next year to take it to 60 uh but the now that we have gotten the space all the uh infrastructure in place. Now 58:59 58 minutes, 59 seconds we'll also need to spend on the uh other activities wherein uh we'll be spending on exhibitions, architects, consultants, 59:06 59 minutes, 6 seconds cataloges, uh print media, there'll be some advertising also being done. So for the next year we expect that 10 to 12 59:14 59 minutes, 14 seconds crores will be going in for the uh senators uh publicity etc. 59:19 59 minutes, 19 seconds Right. Sir sir more of I was referring to the total uh no expense which which includes team building exercise uh store 59:26 59 minutes, 26 seconds opening and other overhead. So, so we've had losses in this year. Uh, so just wanted to get the broad math right. 59:36 59 minutes, 36 seconds The salary expenses for senator and poly plus uh in the current year was in the region of 6 and a half crores per senator and uh 3.3 crores for poly plus. 59:46 59 minutes, 46 seconds Going forward we expect uh 8 and a half crores per senator and 7 crores for poly plus 15 and a half for both of them 59:53 59 minutes, 53 seconds taken together. uh in publicity we expect to do something like 10 to 12 crores uh next year. uh so this salary 1:00:01 1 hour, 1 second expenses is now going to be constant like this is the kind of uh as of now the total uh the structure has already 1:00:08 1 hour, 8 seconds been set up and uh so that amount would now be remaining more as constant at 15 and a half to 16 crores. Uh publicity 1:00:15 1 hour, 15 seconds for the next year is budgeted at 10 to 12 may increase again uh going forward in FY28. 1:00:22 1 hour, 22 seconds Right. Right. Right. So this year losses were what in the tune of 15 16 crores. 1:00:29 1 hour, 29 seconds Uh this year the total losses were in the region of uh 7 crores for senator and for politic it was in the range of 1 1:00:36 1 hour, 36 seconds and a2 crores. The total losses were in the range of 8 and a half crores. Thank you. Thank you man. 1:00:45 1 hour, 45 seconds Thank you very much ladies and gentlemen. In the interest of time we'll take that as the last question. I now 1:00:53 1 hour, 53 seconds hand the conference over to the management for closing comments. 1:00:59 1 hour, 59 seconds Thank you everyone for attending this call and for showing interest in Sarah Sanitary Limited. Should you need any further clarification or would like to 1:01:07 1 hour, 1 minute, 7 seconds know more about the company, please feel free to reach out to me or to CVR India. 1:01:13 1 hour, 1 minute, 13 seconds Thank you once again for taking the time to join the call. Thanks. 1:01:18 1 hour, 1 minute, 18 seconds Thank you. Thank Thank you very much on behalf of CDR India and Sarah San Limited. Thank you 1:01:27 1 hour, 1 minute, 27 seconds for joining us and you may now disconnect your lines. Thank you.