Crompton Greaves Consumer Electricals Limited — Q3 FY26

Crompton Greaves Consumer Electricls Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=DjOAThsaqPQ Published: 3 months ago

0:01 1 second Hello everyone, welcome to Crompton Consumer Electricals 3QFI26 earnings call from the management. Today we have 0:09 9 seconds with us Mr. Prit Kosh managing director and CEO Mr. Kaliswaran Arunachana chief financial officer Miss Shwa Saga chief 0:18 18 seconds business officer Butterfly Kandivati Miss Natasha Kadia head investor relations and corporate communications 0:25 25 seconds Mr. Rajat Chopra business head home electricals and Mr. Charlene Nyak business head lighting solar rooftop and 0:33 33 seconds wires. Thank you so much and I open I mean I'd request the management to give the opening remarks. Thanks. 0:41 41 seconds Uh thank you Zoo. Thank you very much. Uh thank you everyone for joining and uh 0:51 51 seconds good evening. Uh welcome to this earnings call. I as you've already know Mali Shwa 1:01 1 minute, 1 second uh Shin Rajat and Natasha are with me here. I will make some uh initial remarks 1:09 1 minute, 9 seconds and uh uh then we can follow that up with Q&A. 1:14 1 minute, 14 seconds uh throughout Cromton's 85 plus year history uh as you are aware we have deliberately entered categories where we 1:24 1 minute, 24 seconds can build meaningful leadership through scale distribution and a trusted brand. 1:30 1 minute, 30 seconds Our track record from fans and pumps to lighting, appliances, kitchen, and now 1:37 1 minute, 37 seconds solar shows that focused plans plus disciplined execution leveraging our 1:44 1 minute, 44 seconds strengths coupled with strong unit economics and thoughtful capital allocation delivers results. 1:53 1 minute, 53 seconds Today I'm delighted to announce another important strategic step. 2:00 2 minutes Grton is launching a range of residential wires. 2:08 2 minutes, 8 seconds This is a large and attractive market. 2:11 2 minutes, 11 seconds There is clear adjacency with many of our products and we have a strong right to win in this market. 2:22 2 minutes, 22 seconds We will leverage Crompton's brand equity, pan India distribution 2:28 2 minutes, 28 seconds and deep dealer relationships to pursue meaningful scale and leadership. 2:36 2 minutes, 36 seconds This expansion materially increases our addressable market, 2:43 2 minutes, 43 seconds enables us to become an end toend home solution player and supports our long-term objective of delivering sustainable shareholder value. 2:55 2 minutes, 55 seconds These products will become available to consumers in select markets in the next six to seven weeks. 3:09 3 minutes, 9 seconds On another front, one of the big activities and events for 3:15 3 minutes, 15 seconds our business has been the B2 transition in our ceiling fans category. 3:25 3 minutes, 25 seconds This was effective 1st of January 2026 and was a major industry inflection point. 3:35 3 minutes, 35 seconds We transitioned [clears throat] seamlessly As the world's number one ceiling fans 3:43 3 minutes, 43 seconds brand, managing this technology shift at scale required decisive crossf functional execution. 3:53 3 minutes, 53 seconds Our two-part approach comprised responsibly managing and liquidating legacy onestar 4:02 4 minutes, 2 seconds inventory and ensuring future readiness through targeted in engineering and R&D. 4:11 4 minutes, 11 seconds We delivered this smoothly, seamlessly and I am delighted to say with no hiccups. 4:22 4 minutes, 22 seconds from me. Sorry to interrupt you. Just speak up. We're getting speak up more. Okay. All right. Okay guys, sorry I've got a graph voice. So, 4:30 4 minutes, 30 seconds you know, you may not be able to understand everything I say. [laughter] You can always ask later on. Uh, okay. 4:38 4 minutes, 38 seconds All right. Moving on to financial performance. 4:42 4 minutes, 42 seconds Beginning with the Q3 performance, sequentially we have witnessed strong improvement quarter on quarter. 4:52 4 minutes, 52 seconds Consolidated revenue was 1,898 crores. EBIDA grew 18.5% 5:02 5 minutes, 2 seconds QQ and EBIDA margin expanded to 10.3%. 5:09 5 minutes, 9 seconds This recovery was led by volume and margin improvement in ECD complemented 5:16 5 minutes, 16 seconds by continued industry-leading margins in lighting. 5:21 5 minutes, 21 seconds We continue to gain share across categories. 5:27 5 minutes, 27 seconds Our progress in BLC fans is particularly encouraging. 5:33 5 minutes, 33 seconds We are also now the second largest water heater brand in GT nationally. 5:43 5 minutes, 43 seconds Along with this encouraging sequential trajectory, our a yearon-year growth has also 5:52 5 minutes, 52 seconds witnessed positive traction. Revenue grew about 7% driven by ECD growth about 6:00 6 minutes 8% and lighting growth about 7% YI. 6:06 6 minutes, 6 seconds ECD performance was led by strong solar pump execution, volume growth in LDA and 6:13 6 minutes, 13 seconds improvement, continued improvement I dare say in SDA. Lighting growth was supported by ceiling lights and 6:22 6 minutes, 22 seconds accessories together with new product launches. Commodity cost. 6:30 6 minutes, 30 seconds This is something you hear very often in the consumer durables business. Now over the last quarter, commodity cost inflation persisted. 6:40 6 minutes, 40 seconds Pricing actions were taken during the quarter and we expect that further 6:49 6 minutes, 49 seconds actions to defay cost increases will continue to be taken going forward. 6:58 6 minutes, 58 seconds We anticipate this and for a while we anticipated the commodity cost increases 7:05 7 minutes, 5 seconds and for a while now we have been qualifying alternate raw materials without compromising quality and 7:13 7 minutes, 13 seconds continue to offer industry-leading warranties in our products. 7:19 7 minutes, 19 seconds We calibrated brand investments due to seasonality, maintained tight cost discipline and strong execution across channels. 7:29 7 minutes, 29 seconds PBT prior to exceptional items was 156 crores this quarter with a margin with a margin of 8.2%. 7:43 7 minutes, 43 seconds Butterfly delivered a steady revenue of 245 crores 7:50 7 minutes, 50 seconds with a growth of 3% YI led by premiumization in gas stoves and 7:56 7 minutes, 56 seconds GSTdriven demand for cookers. Both of these areas registered doubledigit 8:03 8 minutes, 3 seconds growth. EBITDA margin an area that we have been focusing on for some time 8:11 8 minutes, 11 seconds expanded by nearly 100 basis points Y to 8.2%. 8:18 8 minutes, 18 seconds This was aided by gross margin improvement and cost optimization. 8:25 8 minutes, 25 seconds Overall the net profit of butterfly grew 44% Y this quarter. 8:36 8 minutes, 36 seconds We remain confident of our ability to scale the businesses that we are entering while delivering resilient 8:45 8 minutes, 45 seconds performance in all our core categories. 8:50 8 minutes, 50 seconds I now open the floor to Q&A and uh as is required I'll ask my colleagues around 8:58 8 minutes, 58 seconds the table uh uh to step in and answer uh questions that might arise. I'm hoping that this one page readout addresses all 9:06 9 minutes, 6 seconds your questions but nevertheless we remain open. 9:11 9 minutes, 11 seconds [clears throat] 9:13 9 minutes, 13 seconds Sure. Uh thanks for the opening remarks. 9:16 9 minutes, 16 seconds Uh anyone who wishes to ask a question may use the raise hand function and we'll put you on board. Uh request you 9:23 9 minutes, 23 seconds to restrict your questions to two per participants. 9:27 9 minutes, 27 seconds We'll wait for a moment uh till the question queue assembles. 9:35 9 minutes, 35 seconds Lots of hands up here. Make myself clear, I think. 9:44 9 minutes, 44 seconds So, we'll take the first one. 9:58 9 minutes, 58 seconds Yes, folks. 10:07 10 minutes, 7 seconds We'll take the first question from Aditya Bhartya. You can go ahead with your question. 10:15 10 minutes, 15 seconds Um hi, good evening sir. Uh my first question is on the wise business. Uh just want to understand what's going to be our procurement strategy around that. 10:24 10 minutes, 24 seconds Are we going to manufacture or are we going to procure it from third parties? 10:28 10 minutes, 28 seconds what kind of capex and opex costs uh this this business may entail and how we looking at sales ramping up uh what are 10:37 10 minutes, 37 seconds some of the initial targets that we have set uh for the team? 10:42 10 minutes, 42 seconds Yeah. Uh Adita th this is a business that we are currently uh beginning on 10:49 10 minutes, 49 seconds the basis of outsource product. Uh as you are aware we do a fairly good job of outsourcing our uh products but we've 10:58 10 minutes, 58 seconds spent uh uh the last six u to nine months frankly uh doing a bunch of work on the go to market as well as the 11:07 11 minutes, 7 seconds supply chain. Uh what we what you should expect to see is that uh by the way I I didn't announce that we entered the 11:14 11 minutes, 14 seconds wires and business I announced the launch of those products. So you can imagine there's a slight difference. uh 11:21 11 minutes, 21 seconds uh the products are uh ready and we expect that in select markets uh near 11:29 11 minutes, 29 seconds full range of wires of residential wires will become available in the next uh six seven weeks. Uh I don't want to actually 11:38 11 minutes, 38 seconds uh talk about what kind of uh revenues we expect. Uh uh that's a forward-looking statement. uh but we do 11:46 11 minutes, 46 seconds expect uh uh that this is a very large business about 36 37,000 crores uh where we have a right 11:54 11 minutes, 54 seconds to win and over a period of time I would expect us to get a a a fair uh share if 12:01 12 minutes, 1 second not a leadership uh uh share in the in the near to medium term. 12:07 12 minutes, 7 seconds Understood sir. Um my second question is on the solar rooftop business uh wherein we had won some uh reasonably large-s 12:15 12 minutes, 15 seconds size tenders. Just want to understand the progress around that uh uh uh have we started kind of recognizing some 12:22 12 minutes, 22 seconds revenues from that uh uh and if not then can we expect something to be starting from fourth quarter? uh we have actually 12:29 12 minutes, 29 seconds started uh recognizing revenues and uh we have I think order of magnitude about 12:38 12 minutes, 38 seconds 18 19 crores that we booked in the solar business last quarter and uh yeah the we 12:46 12 minutes, 46 seconds expect the tempo to keep ramping up in the coming quarters again we didn't come we as you might 12:55 12 minutes, 55 seconds imagine uh We announced our entry into the market after some work had been done 13:03 13 minutes, 3 seconds and that's why you are being able to see us uh start to uh book revenues uh from the get-go. 13:11 13 minutes, 11 seconds Sure. And and it's from the state tender order only uh or is it uh from from direct sales to consumers? Uh currently 13:18 13 minutes, 18 seconds it is from the state uh uh tender orders uh B2B orders uh uh and uh uh this 13:27 13 minutes, 27 seconds quarter um I am expecting that the other direct to consumers will also kick in. 13:32 13 minutes, 32 seconds Yeah, perfect. That's great to hear. And one last question if I may. Guys, uh you should ask one question. 13:40 13 minutes, 40 seconds Yeah, there are lots of people on the line. 13:42 13 minutes, 42 seconds Perfect. Perfect. I'll come back in the queue. Thanks. Thank you. 13:45 13 minutes, 45 seconds Thanks. Uh we'll take the next question from Sedhart Aira. Sedhart you may unmute your line and go ahead. 13:52 13 minutes, 52 seconds Yeah thanks for the opportunity sir. Uh sir first question on again on this wire and cable side. uh will it be limited to 14:00 14 minutes wires or do you at some point also plan to enter into cables and uh by how by 14:07 14 minutes, 7 seconds when should we expect uh full pan India sort of uh launch of the wires and would we also look to target the institutional 14:16 14 minutes, 16 seconds clients or it will be only limited to the retail network which we have I don't know if you if you are asking 14:23 14 minutes, 23 seconds about uh a Yeah. So, uh we are currently entering 14:33 14 minutes, 33 seconds residential wires which is the overwhelming majority of the market. Uh uh we remain or obviously uh cables will 14:40 14 minutes, 40 seconds be an area that we'll potentially keep uh looking to evaluate and enter as we go along. uh currently as I said we are 14:49 14 minutes, 49 seconds going to be available in limited markets over a period of time we'll become uh uh available 14:56 14 minutes, 56 seconds in India like our other products are got it sir and on the solar side sir on the pump side can you also highlight the 15:05 15 minutes, 5 seconds revenues and any order book because uh I could not find that in the presentation uh Sedat as you know we don't disclose 15:13 15 minutes, 13 seconds that specifically allow us to skip that I think uh Our order book is robust. Uh as and when we're getting an order book, we do make a se announcement around it and that execution is ongoing. 15:24 15 minutes, 24 seconds Okay. 15:24 15 minutes, 24 seconds I I I think it's fair to say that our uh solar pumps business uh has uh in the 15:33 15 minutes, 33 seconds last quarter also more than doubled over year by right we doubled the revenue. We yeah to be fair more than double the revenue 15:41 15 minutes, 41 seconds but I mean I that's that's the limit of the guidance that uh uh we 15:47 15 minutes, 47 seconds uh we are we give got it sir so last question on the cost side you mentioned 15:55 15 minutes, 55 seconds can we limit our questions guys I you know if you don't mind if you don't mind Sadhart I know you can always touch base 16:03 16 minutes, 3 seconds with datasha if your questions don't get addressed but I am I am cognizant that there are a large number of people who are also waiting. Sure. Sure sir. 16:12 16 minutes, 12 seconds Thanks. U next question is from Um Meta. 16:14 16 minutes, 14 seconds Um request you to restrict yourself to one question. 16:18 16 minutes, 18 seconds Okay. Sure. Uh so the only question I wanted to ask was on uh water heaters. 16:24 16 minutes, 24 seconds So sometime back uh uh you know uh management had highlighted that we were u number one on ecom but number five or 16:32 16 minutes, 32 seconds six on GT. Um just wanted to check have you gained significant market share uh in that particular space 16:38 16 minutes, 38 seconds in in water heaters. I'm now delighted to say that we are number two by market shares 16:45 16 minutes, 45 seconds uh in uh in GT. So uh yeah we wanted to ramp up our uh presence in GT and that's 16:54 16 minutes, 54 seconds what's been happening over the last uh couple of quarters. 16:59 16 minutes, 59 seconds Sure. I have few questions I'll come back in the queue. 17:03 17 minutes, 3 seconds Yeah, thanks. 17:05 17 minutes, 5 seconds It's okay to ask two questions but you know I would request that people do not go beyond that if you don't. 17:11 17 minutes, 11 seconds Okay, just one more uh uh uh on wires front. Could you share some uh color on strategy that you are going to kind of 17:20 17 minutes, 20 seconds deploy in terms of whatever you can share on pricing or influencer engagement uh distribution some more insights would be really helpful. Thank 17:28 17 minutes, 28 seconds you. like uh we announced uh tech with heart and we had a meeting with all note is doing pretty well on BLC. 17:40 17 minutes, 40 seconds Similar to that we will have an engagement on which uh we will have a analyst and a press meet where we will talk about the product range and what 17:48 17 minutes, 48 seconds are we differentiating with and that's pretty short term it's a matter of few weeks in which we'll hear it. 17:52 17 minutes, 52 seconds Strategically we are entering in because there is a right to win. We have a go-to market. The brand is very very strong and as you know Crompton whenever we 18:00 18 minutes enter into a category it's to approach towards a leadership and this is in line with that and that's what we are going to do in bias also. Sure. Thank you so much. 18:07 18 minutes, 7 seconds Tongue and tongue and cheek. I can tell you uh Cromton has been selling uh several you know order of magnitude uh a 18:17 18 minutes, 17 seconds lot of wires uh in the market but only thing Cromton Greavves did not sell them right. 18:24 18 minutes, 24 seconds [laughter] 18:26 18 minutes, 26 seconds It's now going to sell uh computer is going to sell by itself if you know what I mean. 18:33 18 minutes, 33 seconds Yes. Yes, I do. I'm aware about that. Uh wish you all the best sir. Thank you. 18:37 18 minutes, 37 seconds Thank you. Thank you. But this is a direct to market as you might imagine. 18:40 18 minutes, 40 seconds So we've had uh uh we've had we've identified the channel and channel partners and select markets where we are first going to start and then ramp up from there. 18:51 18 minutes, 51 seconds Thanks. Uh the next question is from Anerod Jooshi. Anod. Hi. 18:58 18 minutes, 58 seconds Yeah. Uh hi sir. Hi. Thanks. Thanks for the opportunity sir. Uh in terms of fans uh just a strategic question. Uh now the 19:08 19 minutes, 8 seconds price hikes in induction fans will be far higher than the price hikes in BLC fans. So do you see probably the 19:16 19 minutes, 16 seconds category of u uh induction fan may uh in a way phase out in like uh for five six 19:23 19 minutes, 23 seconds years like CRT teleisions or uh in a way uh the very basic light 19:32 19 minutes, 32 seconds uh will that automatically lead to uh premiumiz 19:39 19 minutes, 39 seconds category as well as chromton also. So that is one question and then second and last question is uh we have entered we 19:48 19 minutes, 48 seconds are entering various categories like mobile accessories, cable wire, solar rooftops 19:54 19 minutes, 54 seconds uh and uh like the obviously fans etc is already there. So the distribution network overlap will be very minimal 20:02 20 minutes, 2 seconds like mobile accessories would be largely ecom category. So how do you see synergies between all all these products 20:09 20 minutes, 9 seconds uh uh working out? Yeah, that's it from my side. 20:13 20 minutes, 13 seconds Okay. Uh first question uh about uh about induction motors and uh BLC 20:22 20 minutes, 22 seconds motors. Uh it is not I firstly I don't necessarily agree with you. Uh the kind 20:30 20 minutes, 30 seconds of cost increases in induction motors depends on the technology uh and the work that you're doing uh on the inside. 20:40 20 minutes, 40 seconds And uh uh as Khales actually briefly mentioned uh uh this is something that 20:47 20 minutes, 47 seconds we've been working on not just uh today but for the last uh one one and a half 20:54 20 minutes, 54 seconds years. Uh so I do not think that uh induction motors would necessarily get 21:01 21 minutes, 1 second priced out in this market. if anything 21:11 21 minutes, 11 seconds and there are advantages in uh BBC and those necessarily don't overlap 21:18 21 minutes, 18 seconds uh you know for instance an induction motor fan the kind of air delivery that it can deliver cannot be met by any other technology uh and not now and not 21:28 21 minutes, 28 seconds uh for some time to come right uh uh So in fact induction motor uh 21:35 21 minutes, 35 seconds particularly for uh you know players like us you remember we are not the largest induction motor uh 21:44 21 minutes, 44 seconds fan company in uh India we are the largest ceiling fan company in the world 21:52 21 minutes, 52 seconds right uh I think we will be we uh do believe that uh that kind of leverage uh will 22:00 22 minutes allow us uh to competitively offer both induction as well as BLC uh fans in the 22:08 22 minutes, 8 seconds long run. In fact, even in the short run as you will find out soon enough. Uh what was the second question? 22:15 22 minutes, 15 seconds Second question maybe on the channel uh strength and other things that we taking in. I think uh fundamentally if you look at it we had a clear called out strategy 22:23 22 minutes, 23 seconds that time expansion is going to be crucial and uh we divided this into play to win and play to participate. If you look at some of the core categories that 22:30 22 minutes, 30 seconds we're looking at idea as to how do you take your 80,000 tan to about 200,000 the large categories that we are entering as play to win from that 22:38 22 minutes, 38 seconds perspective apart from where we are already is what we have announced solar pump solar rooftop where meaningful businesses are getting built now wires 22:46 22 minutes, 46 seconds comes in so with this the TAM is already moving into almost 1.5 to 1.6 6 lakhs. 22:52 22 minutes, 52 seconds Subsequent to that, there are play to participate categories. Mobile etc. is a simple play to participate category, not a large category if we're looking at it. 23:00 23 minutes Also wanted to tell you that as we speak, uh while Croton is extremely strong in general trade, we are the number one e-commerce player in the 23:07 23 minutes, 7 seconds segments that we operate in also. So it complements that and that will help us to grow the play to participate categories also. 23:15 23 minutes, 15 seconds Thanks. The next question is from Thanks. 23:27 23 minutes, 27 seconds Manoj you can unmute yourself and go ahead with your question. 23:30 23 minutes, 30 seconds Yeah thanks for the opportunity sir. So you just give a brief indication about the entry or launch into wires and 23:38 23 minutes, 38 seconds cables. probably I just want to understand the thought process like right now we are outsourcing but probably with scales moving up somewhere 23:46 23 minutes, 46 seconds in FI27 we plan to invest more into this business uh set up your own manufacturing facilities secondly uh 23:55 23 minutes, 55 seconds just continuing with wires you know channel synergies will be uh will be uh the the best part for promptter but in 24:05 24 minutes, 5 seconds terms of distributors and all probably there would be new distributors which you need to get on board. So how things 24:12 24 minutes, 12 seconds are progressing over there and second question on the fans uh the price that are required to offset the commodity 24:20 24 minutes, 20 seconds inflation and INA depreciation. So whether industry considering the demand environment whether industry is set to 24:29 24 minutes, 29 seconds take those kind of price and should we expect margins to remain at normalized levels going forward as well. 24:37 24 minutes, 37 seconds Okay. Uh good uh uh good questions. Uh uh firstly on wires uh what is our 24:45 24 minutes, 45 seconds sourcing strategy? Uh currently our sourcing strategy is uh outsourced. 24:52 24 minutes, 52 seconds You remember that uh this is something that we do quite well in many of our products for the last several years. Uh we have a reasonably large outsourcing. 25:04 25 minutes, 4 seconds That's because we are we one of the competencies that Crompton has is to ensure that the product quality uh can 25:13 25 minutes, 13 seconds be uh very strictly uh maintained. We can get uh good quality product at uh 25:21 25 minutes, 21 seconds reasonable prices. uh and uh uh so uh I currently uh uh our greatest strength is 25:30 25 minutes, 30 seconds our brand and our go to market and uh we do not uh as of now in the next year 25:37 25 minutes, 37 seconds anticipate uh significant capital investments in this. We will see as we go along and see uh as we get to scale. 25:46 25 minutes, 46 seconds uh in so far as uh fans are concerned, yes uh uh commodity prices are uh 25:53 25 minutes, 53 seconds concerned. uh you will remember the last time when we had a conversation uh a 25:59 25 minutes, 59 seconds similar question was asked uh and I had told you that uh for our part we would 26:07 26 minutes, 7 seconds want to continue uh uh to take constructive pricing actions uh to defay 26:14 26 minutes, 14 seconds uh cost increases. you can see that playing uh uh in our uh coming through 26:21 26 minutes, 21 seconds in our margins this quarter. Uh I do expect that uh uh uh the industry will 26:29 26 minutes, 29 seconds also be equally responsible uh in this regard uh in the in the 26:36 26 minutes, 36 seconds current quarter. So I mean look uh it's very difficult to say how commodity 26:42 26 minutes, 42 seconds prices will go uh but uh you know it's uh I I am hoping that uh uh the industry 26:50 26 minutes, 50 seconds will be as responsible as we have been uh in this regard. 26:55 26 minutes, 55 seconds Thank you sir. Sir just a follow up on wires with regards to your channel synergies. So retails retailers yes it 27:02 27 minutes, 2 seconds would be the same retailers most of the retailers but when it comes to distributors I think you need to get distributors on board and how we plan to 27:12 27 minutes, 12 seconds progress uh wires reach into more number of states and probably how we are planning for that that's also 27:21 27 minutes, 21 seconds like I said earlier you know we've been planning this go to market for some time so you know we will have a mix but given 27:29 27 minutes, 29 seconds Cromton's position. Uh uh we do believe that we can build up a we have we have the right to have a strong go to market 27:37 27 minutes, 37 seconds and manos to add to it today also if you look at it we have good synergy on many categories where distributors overlap. 27:44 27 minutes, 44 seconds So when we are talking about entering into this category, groundwork has already been done amongst the number of distributors that we have where we have 27:51 27 minutes, 51 seconds synergies where we have overlap which market we need to uh appoint a new distributor and how do we need to go about it that planning has been done in 27:59 27 minutes, 59 seconds detail and therefore what we want to say is that consciously we are entering in few states. There is a value proportion with which we are going to test in these 28:06 28 minutes, 6 seconds markets. As the value proportion gets accepted there is a national scale up that would happen. As that happens, other things including supply chain investment required will also follow. 28:16 28 minutes, 16 seconds Right now, it's a very cautious, clear capital allocation on a growth category to expand our time with a clear strategy on how to win. 28:25 28 minutes, 25 seconds Thank you, sir, and wish you all the best, sir. Thank you. 28:29 28 minutes, 29 seconds Thanks. The next question is from Pravin Sahai. Pravin, you may unmute your line and go ahead with your question. 28:37 28 minutes, 37 seconds Yeah. Hi. Uh, thank you for taking my question. So first question is uh related to the uh price hike and also 28:45 28 minutes, 45 seconds you had given indication there is some substitute RM to minimize the impact of RM inflation. So can you talk more like 28:53 28 minutes, 53 seconds uh last quarter you indicated around 1 and a half% of price hike in the fan. So what percentage of RM have you covered 29:01 29 minutes, 1 second with the price hike and uh uh what kind of substitute RM are you taking uh to 29:07 29 minutes, 7 seconds minimize the RM inflation? Yeah. Uh Pravin uh some of these alternative items are very strategic and competitive 29:15 29 minutes, 15 seconds information. So all of us not to disclose. The way we are working is how do we get our gross margin up considering uh there is a flagship unati 29:23 29 minutes, 23 seconds cost program that we have been running for many years now. That continues to provide good approval that includes technical levers that we use for costsaving and also some of the 29:31 29 minutes, 31 seconds commercial negotiations that we do considering the scale at which we operate. Subject to that wherever there has to be price that needs to be taken up to pass on we have been consistently 29:40 29 minutes, 40 seconds doing it. Uh there has been a price hike that has been taken in uh Jan net price increase of about say 1 to one and a 29:47 29 minutes, 47 seconds half percentage. We are looking at two more rounds of price increase that would happen in Q4 and Q1. 29:55 29 minutes, 55 seconds Yeah thank you for that. Now next question is related to the your announcement earlier of a green field expansion with the 3.5 billion. So where we are about that? 30:07 30 minutes, 7 seconds That is uh uh that is progressing uh and uh I would uh venture that we would be 30:17 30 minutes, 17 seconds in a position to give you uh more details uh in the near term. Yeah, it's progressing very well. 30:25 30 minutes, 25 seconds Thank you sir and all the best. 30:28 30 minutes, 28 seconds Thank you. The next question is from Rajna Kukra. Rajna. Prashna you can go ahead with your question. Hello am I audible? 30:37 30 minutes, 37 seconds Yes. 30:38 30 minutes, 38 seconds Yes. Uh my first question would be on butterfly. What is the primary driver of gross margin improvement in butterfly 30:45 30 minutes, 45 seconds given raw material prices have remained volatile why are margins going up baba? 30:57 30 minutes, 57 seconds So uh hi Rajna I think uh uh we we did um talk about our u uh go change in go 31:06 31 minutes, 6 seconds to market uh some time back. I think that's what is actually paying us off. 31:11 31 minutes, 11 seconds So we have two parts over here. The first one is in terms of premiumizing our own portfolio. So uh we did launch 31:18 31 minutes, 18 seconds our range of IDF series in uh Q2 uh this year. So which actually started doing 31:26 31 minutes, 26 seconds well for us and our contribution is right now significant. The second one is yes we are in sync with the uh sync in 31:34 31 minutes, 34 seconds terms of taking our price increases um in line with um you know the bomb cost or 31:42 31 minutes, 42 seconds price increases that are happening in the market. So I think it is a mix of both. one is price increase and other one is premiumization that's left from 31:50 31 minutes, 50 seconds so you know what I think you see playing out in butterfly is uh initiatives that we flagged over the last two quarters 31:59 31 minutes, 59 seconds uh the product mix is improving uh we are uh we are uh adding not only is the 32:09 32 minutes, 9 seconds ASP going up but the ASP of new products that are being added uh the margin of new products that have been added is 32:16 32 minutes, 16 seconds higher. Uh that's helping and also I want to emphasize uh we've been saying 32:24 32 minutes, 24 seconds for some time that the uh uh that the terms of trade with the uh uh go to market we are working very hard uh to 32:33 32 minutes, 33 seconds reset those terms of trade and again what you're seeing now is uh improvements coming through from there. 32:41 32 minutes, 41 seconds Okay, understood. Uh one more question data related uh I understand idea track first series have tractioned well I have 32:49 32 minutes, 49 seconds seen good reviews on Amazon as well in presentation also we have uh mentioned that the contribution has increased if 32:56 32 minutes, 56 seconds you could quantify how much it has increased versus previous quarter and also overall in terms of volume what has 33:04 33 minutes, 4 seconds been the growth for butterfly this quarter year on year uh specificity that's we don't share uh 33:11 33 minutes, 11 seconds I just wanted to leave with the thought that uh idea first series has played a significant role uh not only ability to 33:19 33 minutes, 19 seconds sell premium products through idea first but also uplifting the overall brand uh where we become a choice for consumer we 33:26 33 minutes, 26 seconds have been a number two player in many categories apart from leadership in Gastto now we are challenging the number one players by meaningful innovation 33:33 33 minutes, 33 seconds being brought in so all of us not to share the specific contribution uh from a volume growth perspective largely it's been a quarter that has been led by uh 33:42 33 minutes, 42 seconds pressure cooker which is what we called out in our uh uh press release also. 33:46 33 minutes, 46 seconds It's about a single digit volume growth is what we have delivered. Okay, one more question. 33:55 33 minutes, 55 seconds Can I request you to fall back in the queue please? Okay. 34:01 34 minutes, 1 second Uh next question is from Mjit. Uh Mjit, you can unmute yourself and go ahead with your question. 34:06 34 minutes, 6 seconds No worry, we will come back to all those who have another question. Uh uh so not to worry. Hello. Yeah. 34:15 34 minutes, 15 seconds Yeah. Promethi Prit, I have just one question. Uh, you know, I'm curious about this. Every time, you know, a leading company in our industry enters 34:22 34 minutes, 22 seconds an adjacency, you know, the rational is, you know, obviously you you will leverage your brand and your distribution because you're already strong in some category. But what I 34:31 34 minutes, 31 seconds notice is very rarely does that company become a top two player and even if they get meaningful revenue share, the profit share is like very, you know, minuscule. 34:41 34 minutes, 41 seconds And I think to some extent we have seen it with a peer you know wires and cable leading peer who did it in you know fans etc where they never really got any 34:49 34 minutes, 49 seconds profits and if I could be a bit uh this thing uh even our lighting business over the decade has not really done much right in terms of growth or you know making good profits. 34:59 34 minutes, 59 seconds So I'm just curious why this uh you know wires and cables will be any different. Why don't you give it a shot? Yeah. Yeah. Sure. 35:06 35 minutes, 6 seconds I And maybe I'll uh look I uh Mjit I cannot tell you what other people have 35:13 35 minutes, 13 seconds done and what other people have uh achieved. Uh I can tell you what Cromton has done and what Cromton is 35:22 35 minutes, 22 seconds demonstrating today. Right. In so far as Crompton is concerned, we entered an 35:28 35 minutes, 28 seconds adjacent category of uh solar pumps two years ago, two and a half years ago. Uh 35:36 35 minutes, 36 seconds our business has steadily grown and not only has it grown, it is very profitable. And in the last quarter 35:46 35 minutes, 46 seconds alone where the solar roof solar pumps business market has uh degrown overall 35:54 35 minutes, 54 seconds our we have more than doubled our uh sales. Okay. Which not you know I would 36:01 36 minutes, 1 second imagine you can understand means significant sh uh improvement in uh in 36:07 36 minutes, 7 seconds market share. Okay. Uh similarly in so far as our lighting business is concerned by the way our lighting 36:14 36 minutes, 14 seconds business uh we started before our fans business right uh but it I while I agree 36:22 36 minutes, 22 seconds with you that our lighting business had uh uh marked time uh you know for a few 36:31 36 minutes, 31 seconds years in the uh earlier now over the last two years it's been an area of significant focus and Today our lighting 36:40 36 minutes, 40 seconds has leading growth and leading margins and uh leading growth and leading 36:48 36 minutes, 48 seconds margins my friend. So especially if you take out uh nonallied uh uh products of 36:56 36 minutes, 56 seconds competition competition sometimes you know it includes wires also and sometimes it includes switch gear also. uh if you do 37:05 37 minutes, 5 seconds pure lighting uh in both the areas uh we are leading and I I have to say that uh 37:13 37 minutes, 13 seconds the now that we've started to realize and uh leverage the benefits of 37:20 37 minutes, 20 seconds Cromton's uh position uh it is for all to see what that can translate into. uh 37:27 37 minutes, 27 seconds uh so yeah I don't want to com comment on what other people have done or not done and how well they have done it or 37:33 37 minutes, 33 seconds not done it uh uh but uh you know we do believe that uh wires is an area another 37:42 37 minutes, 42 seconds area where uh we have a right to win and uh you know we'll see where that goes I 37:50 37 minutes, 50 seconds don't know if you've got anything else to add to what you said only I think fundamentally we talked about play to- win categories Ries as Promeid said I 37:57 37 minutes, 57 seconds would urge to go back and look at history what we have delivered while yes uh fans are something that 38:05 38 minutes, 5 seconds followed lighting today we are not only India's number one player we are world's number one player in fans secondly if 38:12 38 minutes, 12 seconds you look at pumps we again entered after that today we are India's number one company in residential pumps subsequently we entered into water gizer 38:20 38 minutes, 20 seconds we are number one in e-commerce number two in GT then we got into kitchen we got uh Butterfly acquired from a top six. We are a top three player. Then we 38:29 38 minutes, 29 seconds got into air coolers again came from seven or eight and went moved into top three. Solar pumps already we are 38:36 38 minutes, 36 seconds touching at about a top three player. So if you look at it uh in the past 10 years we have not entered a category to 38:44 38 minutes, 44 seconds fish around for a very very short-term duration. Category strategy is very well thought through. It is not something that we come and announce and see that. 38:53 38 minutes, 53 seconds So that's what we think about it. It's a long-term plan and uh I'm sure you would be aware that for the last two years we have been consciously calling out that 39:01 39 minutes, 1 second there is going to be a addressable market expansion that Crompton is going to consciously work and do it category after category and some of these calls 39:10 39 minutes, 10 seconds that we have taken is an outcome of that as and when we enter new category it is important that we continue to be a leader in the existing category and 39:19 39 minutes, 19 seconds further push the bars. So uh as Promeit said uh we wouldn't be able to comment on what competition has done on where 39:26 39 minutes, 26 seconds and what we have a strategy on how do we need to pursue and that's probably what we would be able to do and deliver. 39:34 39 minutes, 34 seconds Okay. Thanks for the detailed response folks. I'll come back to you later on a one-on-one meeting. Yeah. Thanks. The next question is from Parak. 39:43 39 minutes, 43 seconds Parak you may unmute your line and go ahead please. 39:48 39 minutes, 48 seconds Uh uh good afternoon sir. Thank you for the opportunity. Am I audible? Yes please sir. 39:54 39 minutes, 54 seconds Sir uh just a question out of curiosity. 39:57 39 minutes, 57 seconds We are the number one company in the world in fans. How about thinking 40:04 40 minutes, 4 seconds aggressively uh in terms of exporting these uh offerings and probably garner 40:10 40 minutes, 10 seconds more market share uh outside India. So that's the first question and the second 40:16 40 minutes, 16 seconds question is uh how confident we are in solar rooftop business where you know 40:24 40 minutes, 24 seconds outside Telangana and Andhra Pradesh we would be able to scale up aggressively and uh probably gain strong foothold. So these are the two questions sir. 40:35 40 minutes, 35 seconds Yeah. Uh uh uh Parag firstly I agree with you uh as the world's leading fans 40:41 40 minutes, 41 seconds company uh ceiling fans company uh 40:47 40 minutes, 47 seconds exports are uh an area of focus. I am very happy to announce to you that in 40:55 40 minutes, 55 seconds the last quarter uh we have demonstrated our focus on this area by actually 41:02 41 minutes, 2 seconds hiring uh you know a a very well uh uh 41:09 41 minutes, 9 seconds well experienced team uh on that uh uh segment. We've always had a team but the idea is to take it to the next level and 41:17 41 minutes, 17 seconds uh to that uh extent we've uh significantly strengthened our team in exports the last quarter itself 41:26 41 minutes, 26 seconds and sorry what was the question the next question is uh uh the solar rooftop business. 41:30 41 minutes, 30 seconds Yeah. Yes. So solar rooftop uh business actually shaping up quite well. uh uh 41:37 41 minutes, 37 seconds currently we are executing the orders that we have but simultaneously we are uh also uh uh trying to you know uh go 41:47 41 minutes, 47 seconds proceeding a pace on the B2C offering and I'm hoping that uh in the near term 41:54 41 minutes, 54 seconds you will we will be able to uh formally disclose to you orders that we've uh got in uh uh that segment. I do want to say 42:03 42 minutes, 3 seconds one more thing and reiterate uh the point that I had made earlier. Uh in all 42:09 42 minutes, 9 seconds our businesses scale makes a difference and what we are finding uh is that the 42:16 42 minutes, 16 seconds way we've scaled up our solar business is already making a difference 42:25 42 minutes, 25 seconds to our our margins in both solar rooftop as well as in solar pumps. material difference at the gross margin because 42:33 42 minutes, 33 seconds now we have the scale uh you know I don't know if we disclosing but these are material improvements in the margins 42:41 42 minutes, 41 seconds of these businesses which also means that it positions us better uh uh to be able to provide good uh uh product in the retail space. 42:54 42 minutes, 54 seconds Okay. Is there any new category or adjacent seeds uh in the coming quarters or we are done for some? 43:01 43 minutes, 1 second I think uh we have given uh announcements around where we have entered what we will do in future allow us to let us know close to the quarter. 43:08 43 minutes, 8 seconds Thank you. I as you as you guys are well aware uh uh uh we do not make any announcements uh uh well in advance uh 43:18 43 minutes, 18 seconds and I think that we have clearly uh uh been very transparent with you where we are close to launches and actually making those launches. 43:28 43 minutes, 28 seconds Sure sir good topline got good time margin congratulations and good luck for the future. Thank you. Thank you. 43:35 43 minutes, 35 seconds Thanks. The next question is from Himmani Narang. Uh you may unmute your line and go ahead please. 43:45 43 minutes, 45 seconds Hello. Yeah. Hi. So this is uh Ru from um couple of questions. A um can you sh 43:53 43 minutes, 53 seconds uh in case if I missed it um can you mention um how is the situation of channel inventory when it comes to fans 44:00 44 minutes uh both with the company as well as um with the channel partners on the new rating fans and the old rating with the channel 44:08 44 minutes, 8 seconds partners signal I think it's fair I think it's fair to say that uh 44:16 44 minutes, 16 seconds you know the channel had a fair amount of uh pre uh of old starrated fans uh uh 44:24 44 minutes, 24 seconds some of which they've sold off uh in the in the last uh month and we of course 44:31 44 minutes, 31 seconds being Cromton have from the day one uh started selling only uh the new star 44:37 44 minutes, 37 seconds rated fans on the 1st of January and uh u I I I do believe that uh uh the season so far has been shaping up decently. 45:02 45 minutes, 2 seconds Okay, we'll move to the next question from the line of Pratam Satya. 45:10 45 minutes, 10 seconds Pratam, you may unmute your line. Go ahead, please. Hello. 45:18 45 minutes, 18 seconds Yes. Yes. from your hand. Hello. Am I audible sir? Yes sir. Yeah. 45:26 45 minutes, 26 seconds Okay. Uh thanks for the opportunity sir. 45:29 45 minutes, 29 seconds Sir my question is related to the core business activity of the company because we were the electric rather we are the electric goods company and now recently 45:38 45 minutes, 38 seconds we entered into the solar related business solar pump as well as the solar ruptor. Nothing wrong in diversifying 45:44 45 minutes, 44 seconds the business but I my my question is why we what are the strong reason to enter into the solar business. Naturally your 45:52 45 minutes, 52 seconds answer may be to make the profit but does the company have the enough bandwidth to compete with the established player in the solar rooftop 46:00 46 minutes or solar pump with this and is the another reason is that the electric goods are slow now the there may be a 46:09 46 minutes, 9 seconds slow growth in the electric goods and that was the reason sir kindly explain. 46:17 46 minutes, 17 seconds Uh uh thanks uh for the question Pratam. 46:20 46 minutes, 20 seconds Uh we are very much great believers in doing things that we understand well. Uh in so far as solar pumps is concerned. 46:31 46 minutes, 31 seconds Uh remember that we've been a pumps uh pumps company for the last 50 years and uh we are also the leading uh pumps 46:40 46 minutes, 40 seconds company in the residential pumps company in India. heart of uh solar pumps is uh 46:47 46 minutes, 47 seconds pumps and uh as to whether we are able to compete in that business uh I leave that to your judgment. I have told you 46:55 46 minutes, 55 seconds that uh we uh we are continuing to uh grow our business at 100 plus% every 47:03 47 minutes, 3 seconds quarter and uh uh we have uh uh quickly become one of the largest uh players [clears throat] in that segment already uh with a strong profitability profile. 47:16 47 minutes, 16 seconds Uh similarly for uh uh solar rooftops uh this is we believe very much an 47:22 47 minutes, 22 seconds adjacency for our uh uh business and uh together with solar pumps uh we have 47:29 47 minutes, 29 seconds significant scale. Now uh you may be aware that uh shortly after we entered 47:37 47 minutes, 37 seconds that business we also announced that we have uh order book of close to 500 crores. 47:45 47 minutes, 45 seconds So uh again leave it to your judgment whether that whether you think that we are able to scale up that business or 47:52 47 minutes, 52 seconds not. Uh uh but uh we do see us being able to enter these businesses and uh 48:00 48 minutes not only make profits but build leadership positions. We are not interested in entering businesses in which we are not we are not going to be 48:08 48 minutes, 8 seconds leaders but but our our growth in the electric goods will remain the constant or will 48:16 48 minutes, 16 seconds it grow faster? So uh you know to give you a sense of the growth in our uh 48:23 48 minutes, 23 seconds current [clears throat] businesses last last year uh our uh traditional businesses which are farms and fans 48:32 48 minutes, 32 seconds uh those businesses have suffered not only us the entire uh uh se segment is suffered because of an adverse season. 48:43 48 minutes, 43 seconds uh but I am a great believer that these businesses will continue to be great profit and grow uh revenue growth 48:50 48 minutes, 50 seconds drivers going forward and even in this uh in this time uh you know to give you 48:58 48 minutes, 58 seconds a sense uh in the fans business we've been stepping up our BLC uh range and 49:07 49 minutes, 7 seconds sequentially I don't mind telling you that our uh f our uh BLC range has grown 49:16 49 minutes, 16 seconds materially 50 plus percent right uh which means that we've also gained market share uh five plus percent. Uh so 49:25 49 minutes, 25 seconds it's you know even in times where season hasn't been the most supportive uh we continue to find pockets of growth. uh 49:35 49 minutes, 35 seconds in our pumps business for instance uh uh we have uh uh we end we have now a full 49:42 49 minutes, 42 seconds product range including agri and specialtity pumps and while that segment has been degrowing for the rest of the 49:49 49 minutes, 49 seconds market we are growing very strongly in that segment as well. So anyway, short point is that uh uh we continue to 49:58 49 minutes, 58 seconds strengthen our positions in our traditional areas as well as enter areas where we believe we have the right to win. 50:06 50 minutes, 6 seconds Thanks. Uh we'll take a followup from Aditya Bhart. Adita, you may go ahead please. 50:16 50 minutes, 16 seconds Yes. 50:22 50 minutes, 22 seconds Since there is no response, uh we'd uh request Pravin Sahai to go ahead with uh his question. 50:31 50 minutes, 31 seconds Thank you for a follow-up opportunity. 50:33 50 minutes, 33 seconds Uh sir, my question is related to the solar rooftop. uh as there is a 365 odd cr of order book uh is and also you had 50:42 50 minutes, 42 seconds highlighted it's not of a B2C it's more of a B2B so can you give some more color like it's a B2B B2G and one and the 50:51 50 minutes, 51 seconds second is a procurement strategy here like you are procuring from a domestic manufacturer or importing how you are 50:58 50 minutes, 58 seconds doing this in this segment guys I I I I explained this earlier for the order book that we started with in 51:07 51 minutes, 7 seconds our solar rooftop business is not 365 crores, it is 500 crores, right? Uh 51:15 51 minutes, 15 seconds while this ordering has been with through the medium of the government, 51:22 51 minutes, 22 seconds the product that we are selling is exactly the same product that we are selling in the B2C business. 51:30 51 minutes, 30 seconds This is not this is there is a big difference here. When we do B2B in lighting that 51:39 51 minutes, 39 seconds the product that we sell in the B2B lighting is a very very different business product than we sell in the B2C lighting. This is not that product. We 51:48 51 minutes, 48 seconds are installing rooftops at homes in Andhra Pradesh in 40,000 51:57 51 minutes, 57 seconds 44,000 40,000 38,000 38,000 homes in Andhra Pradesh. It is just that 52:05 52 minutes, 5 seconds the government has uh uh intermediated uh in that order. Okay. And uh in so far 52:13 52 minutes, 13 seconds as the supply chain is concerned, this is a supply chain that we built up also while we were ramping up our solar uh 52:22 52 minutes, 22 seconds pumps business. So we have uh an ongoing arrangement uh uh with panel suppliers 52:29 52 minutes, 29 seconds with inverter suppliers with AC/DC suppliers and so on and so forth. Right? 52:36 52 minutes, 36 seconds And as I said earlier because we are buying products at such large scale in 52:43 52 minutes, 43 seconds both our pumps and our solar business that is uh leading us to be more uh uh 52:50 52 minutes, 50 seconds uh more and more competitive in uh both our solar rooftop as well as our pumps business. 53:00 53 minutes Thanks. The next question is from Aditya Vikram. Uh you may go ahead with your question please. 53:16 53 minutes, 16 seconds Yeah, I think we are done. 53:19 53 minutes, 19 seconds Yeah, I think we'll take one final question of Sorry, I'm audible. Sorry, I could not unmute myself. 53:27 53 minutes, 27 seconds Sorry, could have taken the week. Uh, no, time for a drink. I agree guys 53:36 53 minutes, 36 seconds [laughter] 53:37 53 minutes, 37 seconds the joking don't don't take me seriously. No no no no that's that's absolutely fine prit one of the things I have been attending a lot of phone calls 53:45 53 minutes, 45 seconds your humility and how grounded you are is exceptional so compliments to you and your team I hope this continues as it is 53:53 53 minutes, 53 seconds um so if if I can ask question um and I probably won't fret about the new 54:01 54 minutes, 1 second launches or anything else I I just see a lot of volatility in terms of your margins right Um if ideally somebody has 54:10 54 minutes, 10 seconds to look at the company right what should be the appropriate margin and with you entering into wires and cables right 54:20 54 minutes, 20 seconds what should be the steady state of margin what is the management looking at is my question sir and and I I would 54:27 54 minutes, 27 seconds appreciate if you can not give a number but qualitative input as to where you're looking at and what should be the steady 54:34 54 minutes, 34 seconds rate thank you That's the only question. 54:40 54 minutes, 40 seconds Uh Adita uh I let me uh attempt it as best as I can and then 54:49 54 minutes, 49 seconds I'll hand it over to the guy who knows much better than I do. Uh namely Kalesh. 54:56 54 minutes, 56 seconds I'll try Kalesh. [laughter] Uh guys, when we look at margins, 55:06 55 minutes, 6 seconds uh margins, you you can look at gross margins and then you can look at EBIT margins, right? Uh uh now we must understand that 55:16 55 minutes, 16 seconds the gross margin and the EBIT margin structure of different businesses is different. Right? 55:24 55 minutes, 24 seconds If we look at a business like fans, there is high gross margin, 55:32 55 minutes, 32 seconds reasonable amount of cost below gross margin and you come to a certain uh even. If you look at other uh products 55:41 55 minutes, 41 seconds for instance B2B lighting there is a lower gross margin but very little cost 55:48 55 minutes, 48 seconds below gross margin and therefore you come to a certain EBIT margin right so 55:56 55 minutes, 56 seconds as the mix changes the gross margin structure will change 56:03 56 minutes, 3 seconds right so it's yeah that is a fact of 56:08 56 minutes, 8 seconds life that we have to uh uh that we have to kind of deal with. 56:15 56 minutes, 15 seconds Right? Now to answer the the question about variability 56:21 56 minutes, 21 seconds the v our u fans margin for instance fans margin is impacted by of course 56:30 56 minutes, 30 seconds season because at the end of the day if the season doesn't uh uh perform well a 56:38 56 minutes, 38 seconds perform as per expectations then the level of competition in the uh business goes up right huh uh and as a 56:47 56 minutes, 47 seconds consequence there can be a impact on margin. It also impacts a little bit on uh commodity prices. In so far as we are 56:56 56 minutes, 56 seconds concerned the fans business we've explained to you before we are coming away from a period of intense 57:03 57 minutes, 3 seconds competition. We also coming away from a period where there is uh high commodity prices. Now we have done various things 57:11 57 minutes, 11 seconds in order to defay that. We have on one hand uh being the leader that we are taken price increases and on the other 57:19 57 minutes, 19 seconds hand worked on the product. So we are now uh uh being able to show to you an improvement in uh margins right do we 57:28 57 minutes, 28 seconds expect uh uh some of the benefits to continue into the future the trend uh to continue into the future inshallah yes 57:35 57 minutes, 35 seconds is what I'd say we'll have to we'll have to see right uh uh similarly in lighting 57:43 57 minutes, 43 seconds the margins have historically been where they have been what we have done is that we have done a 57:52 57 minutes, 52 seconds whole bunch of work on two fronts. We changed our product mix. We introduced 57:59 57 minutes, 59 seconds newer products which are higher margin, right? And also we worked on our supply chain. So what you are seeing in 58:09 58 minutes, 9 seconds lighting is the benefits of a material improvement on both 58:17 58 minutes, 17 seconds material improvement on both. We I we have been saying to you for a very long time that we are going to ramp up our 58:25 58 minutes, 25 seconds ceiling uh lights business right what you're seeing is that we have actually ramped that up quite a bit 58:33 58 minutes, 33 seconds right and of course as we ramp up as we do premiumization the margins improve again similarly in butterfly we told you 58:43 58 minutes, 43 seconds that we are going to get into premium products we told you that there'd be higher margin products and that is why you're seeing the benefits and the margin 58:52 58 minutes, 52 seconds right in again I can go on each uh of the businesses but short point is 59:01 59 minutes, 1 second we are continuing [clears throat] to work a pace on not only growing the business revenue growth but also margin improvements 59:10 59 minutes, 10 seconds right I I'm afraid I cannot give you a a more uh detailed answer you'll appreciate uh uh This is this is this is 59:19 59 minutes, 19 seconds this is this is it should give you a sense of what we are up to. I I mean last point 59:28 59 minutes, 28 seconds I'll tell you we we have been saying guys sorry you got me started now but 59:33 59 minutes, 33 seconds [laughter] 59:34 59 minutes, 34 seconds uh uh so sorry I'm keeping you from your weekend uh drinks guys but give me a minute. Uh uh we said for a long time we 59:43 59 minutes, 43 seconds said we are leaders in pumps, residential pumps. We are the by far and away the leader in residential pumps. We 59:50 59 minutes, 50 seconds said we would get into agri and uh uh specialtity pumps. What you are seeing 59:57 59 minutes, 57 seconds today is our agree and specialtity pump business growing significantly faster than the industry. 1:00:04 1 hour, 4 seconds Not only are you seeing it grow significantly faster than the industry, it is now a material share of our pumps business. I'm not talking about solar. 1:00:13 1 hour, 13 seconds Solar is different. I'm talking about agri and specialtity in our traditional pumps business. Not only is our uh is it 1:00:21 1 hour, 21 seconds a material part of our pumps business today, our margins in that product has also gone up because as we've got scale, 1:00:31 1 hour, 31 seconds right? So I look uh uh uh at the end of the day the margin profile is all uh is 1:00:39 1 hour, 39 seconds is going to evolve going forward but these are underlying trends that uh people can read into in our various products. 1:00:47 1 hour, 47 seconds No, that's that's very helpful, Prome. I appreciate you giving such a detailed answer. Um, and best of luck for the new product launches and I hope the margin 1:00:56 1 hour, 56 seconds trajectory and the premiumization continues as you have stated it out very loud. Um, appreciate each one of your time. 1:01:04 1 hour, 1 minute, 4 seconds Uh, hope and best of luck for the future endeavors. Thank you. Thank you. Thank you. 1:01:11 1 hour, 1 minute, 11 seconds Thank you. The next question is from Kesha. Quesa, you may unmute your line. Go ahead, please. 1:01:19 1 hour, 1 minute, 19 seconds Guys, it's 5:30. So, yeah, let's take this as a last question. Last question if people don't mind. Yeah. 1:01:27 1 hour, 1 minute, 27 seconds Hello. Yes, Kesha. 1:01:30 1 hour, 1 minute, 30 seconds Yes sir. So, my first question is as we can see the solar rooftop business execution have started. So this 500 K 1:01:37 1 hour, 1 minute, 37 seconds order by when it will be executed and secondly as it is a government order will it lead to stretch on the working capital days? 1:01:47 1 hour, 1 minute, 47 seconds Uh the uh expectation Kishab is that uh 1:01:54 1 hour, 1 minute, 54 seconds the this order book will be executed over approximately the next 9 to 12 months. Uh 9 to 12 months. uh as you as 1:02:03 1 hour, 2 minutes, 3 seconds I already said uh the this uh this last uh uh quarter we've already executed 1:02:11 1 hour, 2 minutes, 11 seconds about uh 19 crores of solar rooftop sales. Uh we uh look uh 1:02:20 1 hour, 2 minutes, 20 seconds these are uh government uh orders but uh we have uh a reasonable payment uh uh uh 1:02:30 1 hour, 2 minutes, 30 seconds uh schedule that has been agreed with the government. Uh uh so uh this is uh 1:02:36 1 hour, 2 minutes, 36 seconds you know uh we do believe that uh these are uh uh the working capital will be 1:02:44 1 hour, 2 minutes, 44 seconds per expectations in this segment and the working capital will be uh as has already been baked into our uh margins. 1:02:56 1 hour, 2 minutes, 56 seconds This is not something that's new to us. 1:02:58 1 hour, 2 minutes, 58 seconds Uh uh uh we also have a large solar pumps business where uh uh we have been 1:03:05 1 hour, 3 minutes, 5 seconds making reasonable uh uh reasonably uh quick recoveries of uh uh you know of receivables from the 1:03:14 1 hour, 3 minutes, 14 seconds government. Of course you this is something that you have to keep working at but it's a muscle that we've uh learned uh and are continuing to build. 1:03:24 1 hour, 3 minutes, 24 seconds Got it. One last question from my side. 1:03:27 1 hour, 3 minutes, 27 seconds What would be the total impact of B nom changes on fan side? What were the cost escalation and what is the commodity escalation happening and as you 1:03:34 1 hour, 3 minutes, 34 seconds highlighted you have taken one one and a half% hike and possibly more two heights are in store in Q4 and Q1. So what sort of hike you are planning in this two 1:03:43 1 hour, 3 minutes, 43 seconds heights and whether it will cover all the cost impact and secondly will your margin will be you know impacted till Q1 1:03:50 1 hour, 3 minutes, 50 seconds as the entire cost pass on won't happen at least till Q1. Yeah, I think uh Kesha we talked about this earlier. Uh this is 1:03:58 1 hour, 3 minutes, 58 seconds not only going to be a price hike, there is going to be a cost improvement that we are working through Unati coupled with mix is also going to play a 1:04:06 1 hour, 4 minutes, 6 seconds significant role. Now in terms of cost of BWE 2.0 is concerned some of these things we are probably ready ahead of 1:04:14 1 hour, 4 minutes, 14 seconds time and we could mitigate a large part of the cost increase that needs to happen on account of BWE as compared to the industry and uh uh segment as a 1:04:22 1 hour, 4 minutes, 22 seconds whole. Yes, commodity is going up. Uh that's the reality. But that's where we talked about baking in two price increases. One that will one that has 1:04:31 1 hour, 4 minutes, 31 seconds already happened subsequent to that, one more in Q4 and one more in Q1. We think that should help us to largely offset coupled with the other cost initiatives that we discussed. 1:04:41 1 hour, 4 minutes, 41 seconds So you have we a lot of people asked us about 9 12 months ago when we announced 1:04:49 1 hour, 4 minutes, 49 seconds uh Xtech. Uh this is what extec was about right getting ready in advance for 1:04:57 1 hour, 4 minutes, 57 seconds uh the B transition uh of course also the next B transition but certainly this transition and uh I I think it's fair to 1:05:05 1 hour, 5 minutes, 5 seconds say that we are uh quite well prepared uh uh from host point of view for this B transition which happened earlier in Jan. 1:05:16 1 hour, 5 minutes, 16 seconds Okay. Thank you sir. 1:05:20 1 hour, 5 minutes, 20 seconds Thank you. Uh, I'd leave the floor uh to the management for any closing remarks. 1:05:25 1 hour, 5 minutes, 25 seconds Uh, no, not nothing more. Uh, uh, have fun, guys. Uh, and, uh, you know, have a good weekend. Thank you. Thanks. 1:05:33 1 hour, 5 minutes, 33 seconds Thanks a lot. I could. Thanks everyone.