DOMS Industries Limited — Q1 FY26

Doms Industries Ltd Q1 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=slg-do4TXMo Published: 9 months ago

0:00 [Music] 0:01 1 second Ladies and gentlemen, good day and welcome to the Q1 FY26 earnings conference call of DOMS hosted by ICICI Securities Limited. 0:13 13 seconds Before we begin, a brief disclaimer. The presentation which DOMS industries limited has uploaded on the stock 0:20 20 seconds exchange and their website and the discussions during this call contains or may contain certain forward-looking 0:27 27 seconds statements concerning DOM's industries limited business prospectus and profitability 0:34 34 seconds which are subject to several risk and uncertaintities and the actual result could materially differ from those in such 0:43 43 seconds forward-looking statements As a reminder, all participant lines will be in the listenonly mode and there will be 0:50 50 seconds an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an 0:59 59 seconds operator by pressing star then zero on your touchstone phone. I now hand the conference over to Mr. Aneruda Jooshi 1:08 1 minute, 8 seconds from ICICI Securities Limited. Thank you and over to you sir. 1:14 1 minute, 14 seconds Yeah, thanks Shrui. On behalf of ICICI securities, we welcome you all to Q1 FYI26 results conference call of Dom's 1:23 1 minute, 23 seconds Industries. We have with us today senior management represented by Mr. Rahul Shaha, Chief Financial Officer. Now I 1:31 1 minute, 31 seconds hand over the call to Mr. Rahul Sha for his initial comments on the quarterly performance and then we will open the floor for question and answer session. 1:40 1 minute, 40 seconds Thanks and over to you Rahul Bay. 1:44 1 minute, 44 seconds Thank you GI. Thank you G. Good morning everyone. It is a pleasure to welcome you all to the earnings conference call 1:51 1 minute, 51 seconds for the first quarter ended June 30, 2026 2025. Joining me on this call is the 1:59 1 minute, 59 seconds team from Marathon Capital, our investor relation advisor. I hope everyone had an opportunity to go through the investor 2:07 2 minutes, 7 seconds presentation and the results release that have been uploaded on the exchanges and our company's website. 2:15 2 minutes, 15 seconds Our results for Q1 FY26 reflect a sustained growth trajectory with continuous positive momentum in sales. 2:23 2 minutes, 23 seconds This performance also reflects the enduring benefits from our timely capacity additions, strategic 2:30 2 minutes, 30 seconds initiatives and the deepening trust in our brand doms. During the quarter, we witnessed growth across our balanced and 2:38 2 minutes, 38 seconds diversified product portfolio supported by renewed positive sentiment in the domestic market and encouraging international demand trends. 2:49 2 minutes, 49 seconds During the quarter, we have continued to expand our product portfolio with introduction of new products across all 2:55 2 minutes, 55 seconds our product segments. Notable additions were made in our core categories of scholastic stationary, scholastic art 3:03 3 minutes, 3 seconds materials, kits and combo packs, paper stationary, and office supplies. We have also witnessed encouraging response for 3:10 3 minutes, 10 seconds the new products introduced in the hobby and craft segment, baby hygiene segment, and the back to school segment. 3:18 3 minutes, 18 seconds Further, we successfully completed the acquisition of Super Threat Private Limited, strengthening our delivery 3:26 3 minutes, 26 seconds capabilities in the eastern region of the country and enhancing our paper stationary production capacity by 3:33 3 minutes, 33 seconds getting us closer to our customers in that region, allowing us to capture larger market share in the paper segment. 3:42 3 minutes, 42 seconds We remain steadfast in our pursuit of growth and are progressing steadily on our expansion trajectory with our 44 3:49 3 minutes, 49 seconds acre project positively on track featuring timely construction milestones 3:56 3 minutes, 56 seconds including the delivery of building by end of Q3 for installation of plant and machinery. 4:04 4 minutes, 4 seconds This complemented by a timely brownfield expansion initiative within the adjoing areas as well as the new land and 4:13 4 minutes, 13 seconds building purchase during March and April of 2025 will help us increase capacity 4:20 4 minutes, 20 seconds positioning us strongly to capitalize on the retail demand for our products. 4:27 4 minutes, 27 seconds Export of our own brand products have also contributed positively to our growth with our existing markets responding favorably to our product offerings. 4:39 4 minutes, 39 seconds Our partnership with Fila for international distribution is also gaining traction with promising feedback from markets where we are leveraging 4:48 4 minutes, 48 seconds their network for distribution of dom branded products. 4:52 4 minutes, 52 seconds We would like to thank our consumers and channel partners who have been our driving force continuously inspiring and motivating each and every one of us. We 5:02 5 minutes, 2 seconds continue to to work towards strengthening our connect with our consumers and are proud to have grown our YouTube family to 3 million plus 5:11 5 minutes, 11 seconds subscribers and our Instagram followers base to over 100,000 followers. So keep showcasing our so strong social media 5:20 5 minutes, 20 seconds engagement. Our channel partners have also been instrumental in our growth, effectively showcasing our products to our consumers. 5:29 5 minutes, 29 seconds We are optimistic about the domestic demand on the back of growing optimism around consumptiondriven growth. While 5:37 5 minutes, 37 seconds we remain watchful of external uncertainty, we are positive about the optimism in the international markets 5:44 5 minutes, 44 seconds for Dom's products. Our strategic efforts lay a strong foundation for medium to long-term success. And moving 5:53 5 minutes, 53 seconds forward, we'll continue to focus on our core strengths of broadening our product portfolio, boosting our production 6:00 6 minutes capabilities and profitable growth. Now coming to the 6:08 6 minutes, 8 seconds details of our financial performance for quarter ended June 30, 2025. 6:14 6 minutes, 14 seconds Consolidated operating revenues for Q1 FI26 stood at 562.3 6:20 6 minutes, 20 seconds cr of nearly 26.4% compared to the same quarter last financial year. This increase in sales 6:29 6 minutes, 29 seconds was predominantly on account of volume growth aided by marginal increase in average selling prices due to change in product mix. 6:39 6 minutes, 39 seconds Sequentially too we saw growth in our operating revenues. Operating revenues grew by 10.5% 6:46 6 minutes, 46 seconds from 508.7 crores in Q4 FY25. 6:52 6 minutes, 52 seconds This growth is attributed to increase in volume due to capacity addition and the growth in export sales. 7:00 7 minutes The consolidated AITA for Q1 FY26 grew by 14.3% to 98.7 crores as compared to 86.4 4 crores in Q1 FY25. 7:14 7 minutes, 14 seconds The AITA margin for the quarter stood at 17.6%. 7:19 7 minutes, 19 seconds Profit profit after tax for the quarter stood at 59.1 crores with 10.5% pat margin. 7:29 7 minutes, 29 seconds This performance alongside AITA margins of 17.6% 6% trending towards the upper end of our guided range of 16 and a half 7:38 7 minutes, 38 seconds to 17.5% demonstrate the strengthening of our business model and our ability to maintain operational efficiency. 7:47 7 minutes, 47 seconds During the quarter we have done a capex of approximately 70 crores including capital advances and fullear payex is 7:56 7 minutes, 56 seconds expected to be in the range of 210 to 225 crores. These investments were 8:03 8 minutes, 3 seconds primarily towards purchase of additional land building adjust adjacent to our current flagship plant ongoing uh 8:11 8 minutes, 11 seconds construction activities for the 44 acre project and purchase of plant and machinery across different product 8:19 8 minutes, 19 seconds segments. These uh investments are expected to drive growth in the current and upcoming financial year. 8:27 8 minutes, 27 seconds As mentioned earlier, our performance for the quarter was in line with our expectations and believe and we believe that we will be able to achieve our good 8:36 8 minutes, 36 seconds guidance of 18 18 to 20% for FI26. 8:42 8 minutes, 42 seconds With this, I would now request to open the floor for question and answer. Thank you. 8:49 8 minutes, 49 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 8:57 8 minutes, 57 seconds star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are 9:06 9 minutes, 6 seconds requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question cube assembles. 9:18 9 minutes, 18 seconds The first question is from the line of Sneha Tal Tala from Noama. Please go ahead. 9:27 9 minutes, 27 seconds ations team and bring a set of numbers. 9:29 9 minutes, 29 seconds Uh just couple of uh questions from my end just wanted to understand what would be our share of uh exports from US and 9:37 9 minutes, 37 seconds are you seeing any impacts on the tariff size or the items to low ticket items would basically see any impact or any color on this would be helpful. 9:52 9 minutes, 52 seconds Hi Smeha. 9:54 9 minutes, 54 seconds Uh so basically our exports to US uh you know is roughly about uh 5.5 to 5.8% 10:03 10 minutes, 3 seconds of our gross sales. You know the current uh tariff on uh one of the core products that we export to US is about 6 and a 10:12 10 minutes, 12 seconds half% which is uh you know now expected to grow to about 50.65% 65% once the 10:19 10 minutes, 19 seconds additional 25% tariffs also kick in but considering the sales is only about 5.8% 8% of our total sales. We do not see any 10:28 10 minutes, 28 seconds significant impact of our uh you know sales to uh US on our overall sales. Uh 10:35 10 minutes, 35 seconds the potential decline in sales to US we believe shall be offset by increase in export to other countries where doms is 10:44 10 minutes, 44 seconds witnessing growth growing brand acceptance. Uh also we are positive about the demand scenario in the domestic market. uh and hence we do not 10:53 10 minutes, 53 seconds see a significant ne negative impact of US tariff on our uh business performance. 11:03 11 minutes, 3 seconds Sure. Thanks. Thanks for that. The second just wanted to understand of course you know you believe in conservatively guiding and even this particular quarter what we've seen is 11:11 11 minutes, 11 seconds you've grown by 26% against your guidance of 20% and your margins have also come in against 17.6% 6% against 11:19 11 minutes, 19 seconds you know 16 and 12 to 17 and a half that you guide for. Do you think uh any reason of you know revising this upwards 11:28 11 minutes, 28 seconds along with this also you you know in your opening remarks you highlighted uh that you know uh market around is uncertain. Could you explain how it is 11:36 11 minutes, 36 seconds it in terms of demand and how are you able to get this amount of pull in the market? Thanks. Thanks for this 11:44 11 minutes, 44 seconds uh we rem uh you know we mentioned that we are uncertain about the export markets considering the especially with 11:51 11 minutes, 51 seconds respect to US but otherwise at the domestic uh uh you know in the domestic market we are seeing positive uh uh uh 12:01 12 minutes, 1 second demand scenario being built up for our products. So uh we are confident that we'll be able to achieve our uh you know 12:08 12 minutes, 8 seconds guided range in terms of overall sales growth to about 18 to uh 20%. 12:15 12 minutes, 15 seconds uh you know this quarter particularly you see the growth numbers being a little higher is primarily on account of 12:23 12 minutes, 23 seconds uni acquisition uh where you know in the base quarter previous year the unique numbers were not consolidated 12:31 12 minutes, 31 seconds u and in terms of margin you know we've always believed that the range of 16 12 12:38 12 minutes, 38 seconds to 17 12% is something which we are confident of achieving and therefore would continue with uh this guiding 12:46 12 minutes, 46 seconds range at least for uh you know a quarter or so more uh once we have a little more visibility of how the year is 12:53 12 minutes, 53 seconds progressing then if required we reuse it our uh guidance but as of now like I said we confident of achieving our FY26 13:03 13 minutes, 3 seconds range of sales growth range of 18 to 20% with epitita margins of uh 16 and a half 13:09 13 minutes, 9 seconds to 17 and a half% and margin of 10 to 10 and a half% Thanks. Thanks. That was helpful. All the best. 13:19 13 minutes, 19 seconds Thanks, Mayor. 13:20 13 minutes, 20 seconds Thank you. Our next question is from the line of Aradhana Jane from BNK Securities. Please go ahead. 13:29 13 minutes, 29 seconds Hi, thank you for the opportunity and congratulations on the good set of numbers. Couple of questions from my end. uh first I wanted to understand uh 13:38 13 minutes, 38 seconds what is the reason for the muted performance in scholastic stationary and the scholastic art category I mean we've 13:45 13 minutes, 45 seconds added capacity I believe in these two categories in spite of that uh there's been a muted performance across both 13:53 13 minutes, 53 seconds these in fact in the last quarter also there was a debt so uh what is the reason behind that that's my first question 14:02 14 minutes, 2 seconds yeah so uh hi Arnma good morning uh Arand basically if you see Scholastic Stationary has shown a low growth of 14:10 14 minutes, 10 seconds about 2% while Scholastic Art when compared to the previous year same quarter has been flagged. There are 14:17 14 minutes, 17 seconds primarily two reasons for this. Uh first and foremost has not been any significant capacity addition in these 14:25 14 minutes, 25 seconds categories that could drive increase in volumes and thus growth. Second uh you know as we mentioned in our previous 14:34 14 minutes, 34 seconds discussion also you know the performance of scholastic stationary and scholastic art should be evaluated along with the 14:42 14 minutes, 42 seconds performance of kits and combo segment as well. uh if you see the sales of kids and hospital 14:50 14 minutes, 50 seconds is over 52% uh compared to FI20 F first quarter FI25 14:58 14 minutes, 58 seconds uh and if you combine the overall loss of police 15:05 15 minutes, 5 seconds sorry sorry to interrupt sir sorry sorry to interrupt Rahul sir your voice is uh muffled your voice is dropping okay can you hear me Now is it better? 15:16 15 minutes, 16 seconds I can hear you. Yes. Yes, it's better. Please go ahead. Thank you. 15:21 15 minutes, 21 seconds So, if you combine the overall gross sales of scholastic stationary, scholastic art materials and kits and 15:28 15 minutes, 28 seconds combos together, Q1 FY25, these three segments accounted for uh around 347.2 15:37 15 minutes, 37 seconds crores of gross product sales. uh while compared to 369.5 crores of gross product sales in the 15:45 15 minutes, 45 seconds current quarter which is a growth of roughly 6.4%. 15:49 15 minutes, 49 seconds Uh but like I said earlier there has been not any substantial capacity additions in this segment uh and hence 15:58 15 minutes, 58 seconds the growth has been a little lower than the overall growth in sales. 16:04 16 minutes, 4 seconds Uh so do we expect capacity addition during this year? uh the the 210 250 odd crores of capeex that we are planning to 16:12 16 minutes, 12 seconds do will that also lead to some addition in this uh category uh in terms of capacity. 16:20 16 minutes, 20 seconds Uh yes uh definitely uh like we mentioned earlier uh we are in the process of uh increasing the capacity of 16:28 16 minutes, 28 seconds our core product which is wooden pencils. 16:32 16 minutes, 32 seconds uh you know uh like we'd mentioned earlier uh the capacity uh you know wooden pencils is a slightly complicated 16:39 16 minutes, 39 seconds manufacturing process where you need to uh add capacity that three different uh uh processes significant processes out 16:49 16 minutes, 49 seconds of that uh you know we've already done the additions for uh two of the processes. Now the only uh capacity 16:56 16 minutes, 56 seconds addition spending to be done completed is for uh finishing of the pencils. Uh this is expected uh you know as soon as 17:05 17 minutes, 5 seconds the first building uh from our 44 pro acre project is handed over to us. So 17:11 17 minutes, 11 seconds which is expected by Q3 FY26 uh and you know about 90 days from there on to uh start the commercial 17:20 17 minutes, 20 seconds production. So we are targeting to at least have a uh you know the new uh you know 17:35 17 minutes, 35 seconds you'll see uh substantial uh capacity addition coming in wooden fences which will drive uh growth of this segment. 17:45 17 minutes, 45 seconds Understood. Just two more questions from my end. One is on the office supplies that's grown phenomenally at like 77% yearonear. How much of the contribution 17:54 17 minutes, 54 seconds in the office supplies has been because of pence and within pence what is the revenue mix of rupees 5 and rupee 10? 18:02 18 minutes, 2 seconds So uh Arana while we you know discuss on a very granular granular detail but yes in the office supply segments some key 18:11 18 minutes, 11 seconds growth drivers have been uh pens. Uh along with that we are also seeing a positive response to the uh range of 18:19 18 minutes, 19 seconds highlighters that we've launched under this segment. Uh both these products are uh driving uh growth of the office 18:27 18 minutes, 27 seconds supply segment uh with some more capacity addition coming in uh this financial year also in this segment. We 18:36 18 minutes, 36 seconds believe this segment to continue to perform well for us and in terms of uh you know the uh price point uh you know 18:45 18 minutes, 45 seconds uh it's uh we continue to sell uh majorly our pens at the 5 rupee MRC segment but uh there have been new SKUs 18:54 18 minutes, 54 seconds which are launched in the 10 rupee segment as well. 18:58 18 minutes, 58 seconds Understood. And this last bit from my end on the uni land business uh just wanted to understand the seasonality aspect of that business a bit more. Uh I 19:07 19 minutes, 7 seconds mean while the business was not there in the last year this quarter but there's been a sequential decline in the revenue 19:14 19 minutes, 14 seconds growth uh in this quarter. So given that you know monsoon came early wouldn't that have led to better numbers like 19:22 19 minutes, 22 seconds given that winter was the reason for you know four fourth quarter to have done well for unilan similarly wouldn't for 19:29 19 minutes, 29 seconds first quarter as well should have been good from that aspect and secondly in terms of eida margins if we were to see for unilan what would be the steady 19:38 19 minutes, 38 seconds state eita margins that we can consider because last year again like last quarter it was around uh 8 and a half 9% to closer to those numbers um numbers 19:47 19 minutes, 47 seconds this year it's closer to a 7%. So on a steady state basis what could be the margins to be considered. Yeah that's it from my side. Thank you. 19:57 19 minutes, 57 seconds Yes. Uh unique clocked in revenues of about 36.1 crores in Q1. Uh Q1 is 20:04 20 minutes, 4 seconds structurally a weak quarter for diapers but as you mentioned you know because the onset of monsoon was a little 20:11 20 minutes, 11 seconds earlier. Uh definitely we saw a little bit of uh positive uh due to that aspect 20:18 20 minutes, 18 seconds on our uh baby hygiene uh business. Uh you know uh while Q1 FY25 sales of Uni 20:26 20 minutes, 26 seconds were not consolidated uh but uh uh if I have to just share some light on it we've grown our 20:33 20 minutes, 33 seconds business compared to uh FI25 by about 40% in Uni. Uh this has been uh because 20:42 20 minutes, 42 seconds of uh both uh uh you know some capacity additions that have happened especially in the wet white segment which was 20:50 20 minutes, 50 seconds commercialized in Q4 FY 25 as well as uh you know season setting in a little 20:57 20 minutes, 57 seconds earlier in some parts of India. Both these factors help in achieving uh uh you know higher growth for unique 21:05 21 minutes, 5 seconds landline on a quarter over yearon-year basis. And you know from an AITA margin perspective uh we still believe that you 21:13 21 minutes, 13 seconds know this business the right AITA margin for this business would be 8 to 9%. Uh because right now the focus would 21:21 21 minutes, 21 seconds definitely be on ramping up uh sales and the distribution network. uh I will be comfortable with the company doing about 21:29 21 minutes, 29 seconds 8 to 9% uh EITA margins for the full year basis. 21:34 21 minutes, 34 seconds Understood. Just one last question on this distribution network bit. So on a sequential basis, if I look at your Uniclan brands network, there's been a 21:43 21 minutes, 43 seconds decline in the uh retail outlets and the salesperson number on a sequential basis. Any reason for that? And what 21:49 21 minutes, 49 seconds could be the um aspiration for the full year in terms of reaching out in terms of the retail outlets for Unicland? 21:58 21 minutes, 58 seconds Yeah. Uh at Uniand like I said you know we are in the process of building a distribution you know a robust domestic 22:05 22 minutes, 5 seconds distribution network for UniLand. There has been some decisions taken by us to rightfize uh the network uh you know 22:14 22 minutes, 14 seconds ensuring that the uh effectively reach our consumers. The focus has uh you know 22:22 22 minutes, 22 seconds been more on uh driving more secondary sales than just primary sales. So it is a process that we are doing right now. 22:30 22 minutes, 30 seconds So there will be some side sizing also that might happen in terms of the sales team as well as our uh distribution and 22:38 22 minutes, 38 seconds retail outlet reach. Uh but we believe this to grow uh gradually. Uh some Dom's 22:46 22 minutes, 46 seconds existing channel partners of our stationary segment have already uh you know been appointed as channel partners 22:54 22 minutes, 54 seconds for the hygiene segment also. So slowly we'll focus on strengthening this uh network but it will be a gradual 23:01 23 minutes, 1 second process. We would not want to put any sort of a target in terms of uh you know where we want to reach because we've 23:09 23 minutes, 9 seconds never followed that even for you know doms. We just want to maximize the throughput to each of our channel 23:16 23 minutes, 16 seconds partners before getting into that number game of increasing the channel strength. 23:23 23 minutes, 23 seconds Understood. This was helpful. I'll join back in the queue. Thank you. 23:27 23 minutes, 27 seconds Thank you. Our next question is from the line of Janesh Jooshi from PL Capital. Please go ahead. 23:36 23 minutes, 36 seconds Thanks for the opportunity. Uh sir, I have a question on our uh revenue mix. 23:42 23 minutes, 42 seconds If I look at uh the uh northern belt, I mean historically the contribution uh 23:48 23 minutes, 48 seconds used to be at around uh 30% plus but in this quarter it has come down to about 23:54 23 minutes, 54 seconds uh uh 28%. So any in specific reason for the fall to come through and also 24:01 24 minutes, 1 second secondly if I look at our uh MC channel uh the revenue is up by about uh 90%. So 24:09 24 minutes, 9 seconds just wanted to know I mean have we penetrated uh newer stores or is it that uh we are able to extract uh more uh throughput from the uh existing clones. 24:20 24 minutes, 20 seconds Yeah. So these two questions please if you can tell some uh hi jes I heard the first part of your 24:28 24 minutes, 28 seconds question clearly uh which was why this proportion of sales from north India has come down. Uh second part I couldn't 24:37 24 minutes, 37 seconds hear well. So let me first answer the first part of the question and then if you could please repeat the second part. 24:43 24 minutes, 43 seconds Uh Jes basically see what has happened is uh you know almost 35% of sales of 24:51 24 minutes, 51 seconds unique len comes from uh e-commerce uh and you know the company 24:58 24 minutes, 58 seconds uh does all of these sales from uh their uh plant in Jaipur Rajasthan. So all 25:05 25 minutes, 5 seconds these sales currently gets absorbed in western part of India and that is the primary reason why you are seeing the 25:13 25 minutes, 13 seconds western part increasing. Uh also certain merchant exports done by doms have uh you know increased. Uh so there which is 25:23 25 minutes, 23 seconds also accounted in our factory sales from Gujarat. Uh these are the reasons why uh you know western region is showing 25:31 25 minutes, 31 seconds stronger. But otherwise uh you know if you look from overall at the uh customer level uh you know the sales are uh 25:40 25 minutes, 40 seconds pretty much in line uh you know what they were previously where north accounts the highest followed by west 25:47 25 minutes, 47 seconds and then uh south and east channel growth the modern trade channel 25:57 25 minutes, 57 seconds growth interrupt sorry to interrupt janes sir could you please repeat your question cuz you are not audible to us. 26:05 26 minutes, 5 seconds Yeah. Yeah. Am I audible now? Yes. Now you are. Yes. 26:09 26 minutes, 9 seconds Yeah. So uh uh my question was on your modern trade uh channel growth uh which has come up at about 90% in this 26:19 26 minutes, 19 seconds quarter. Uh so just wanted to know have we kind of penetrated a newer stores or is it that the throughput from the 26:27 26 minutes, 27 seconds existing stores has increased meaningfully? 26:32 26 minutes, 32 seconds So uh the yearon-year growth in uh modern trade e-commerce switchcommerce that you see is again you know linked to 26:39 26 minutes, 39 seconds unique land in the base quarter unique land was not consolidated and like I said almost 35 plus percentage of unique 26:47 26 minutes, 47 seconds lend sale comes from uh e-commerce uh that is the reason why you are seeing that the trade uh has grown uh 26:56 26 minutes, 56 seconds significantly when compared year on year. Uh so that's the primary reason but having said that you know uh modern 27:05 27 minutes, 5 seconds trade e-commerce commerce is something which within the stationary segment also is witnessing growth uh because uh you 27:14 27 minutes, 14 seconds know our existing relationships the demand for these products on these channels also continue to increase. So 27:21 27 minutes, 21 seconds there's nothing uh other than that that we've primarily seen degrowth in other segments and therefore focusing more on 27:29 27 minutes, 29 seconds modern trade e-commerce. It's not that it's just primarily on account of the uni acquisition. 27:36 27 minutes, 36 seconds Got that. And secondly, I mean uh uh you mentioned in your opening remarks that uh we have started selling uh branded 27:43 27 minutes, 43 seconds products in export markets via the distribution agreement with Fila. So can you just talk a bit about sorry sorry to interrupt J sir could you 27:52 27 minutes, 52 seconds please distant your device from yourself so that we can hear you clearly cuz your voice is sounding muffled. 28:00 28 minutes Is it is it better now? Yes sir. Please go ahead. 28:05 28 minutes, 5 seconds Yeah. So uh uh the question was on uh the uh branded products uh sale in export markets via the distribution 28:13 28 minutes, 13 seconds agreement with FILA. So I just uh wanted to know if you can just talk a bit about the opportunity uh size over here. I 28:22 28 minutes, 22 seconds mean what was the PA's revenue when it was dealing in uh these markets on its own via white labelled products or is it 28:30 28 minutes, 30 seconds is it a new market for as well whereby now we have got a lead to sell our own products versus their own products. 28:40 28 minutes, 40 seconds So Gage uh the distribution agreement with FILA was is only for those uh 28:48 28 minutes, 48 seconds markets where Fela had the existing network infrastructure and are continuing to do business. So it's not 28:56 28 minutes, 56 seconds new markets for kila also these are existing markets. Uh like I said in the opening remarks also we've started uh 29:04 29 minutes, 4 seconds you know selling doms branded products in a couple of uh markets where sila is already present uh but it's still early 29:14 29 minutes, 14 seconds days uh you know it's uh where the goods have reached the destination countries and uh the marketing and sales 29:23 29 minutes, 23 seconds activities have started. So we still take need to you know understand the uh response from the end consumers uh what 29:32 29 minutes, 32 seconds it has been before we can say and think about what is the potential of the business in these regions. 29:40 29 minutes, 40 seconds uh in terms of you know CILA doing uh sales in this market honestly we've not looked at those numbers uh because uh 29:49 29 minutes, 49 seconds Tom's uh products are not going to be competing with Fela's products they are basically uh you're selling in you know 29:58 29 minutes, 58 seconds as a secondary brand along with the Fila brands where both the brands are going to be positioned differently so you know 30:05 30 minutes, 5 seconds it wouldn't be correct to look at the opportunity perspective ive of the sales that Fela is doing in the existing uh 30:14 30 minutes, 14 seconds markets from Fela products. This is going to help Fela also to expand their sales in these geographies. 30:23 30 minutes, 23 seconds Understood. Understood. So just one last question from my side. Uh given this quarter was uh the back to school uh 30:30 30 minutes, 30 seconds season for us. I mean is it possible to share what was the revenue speed in 1q26 30:37 30 minutes, 37 seconds and where are the uh trending in terms of the annual uh run 30:44 30 minutes, 44 seconds Jes 30:56 30 minutes, 56 seconds I'll get back in the question join the queue yeah okay okay thank you thank you so much. Our next question is 31:03 31 minutes, 3 seconds from the line of Konal Vora from BNB Paribas. Please go ahead. 31:08 31 minutes, 8 seconds Yeah, thanks for the opportunity and good quarter all on the pen business. What is the market share you are at now? 31:15 31 minutes, 15 seconds Is the competition reacting in any way to your market share gains and at what level of sales would you expect a slowdown in the pen business? 31:24 31 minutes, 24 seconds Uh hi. 31:27 31 minutes, 27 seconds uh basically uh you know we are still a new entrant relatively a new entrance in the segment you know we started uh with 31:36 31 minutes, 36 seconds uh the conventional ballpoint fence about two years back it's been just two years uh but we are happy with the response that we've got from our 31:44 31 minutes, 44 seconds consumers which has helped us uh scale up the business uh to a pretty decent level um but from a market share 31:52 31 minutes, 52 seconds perspective I don't have the exact number but my uh ceiling is that we'll be still lower. We'll be about 3 to 4% 32:01 32 minutes, 1 second uh which gives us a big runway to grow uh in this segment. Uh we see the opportunity being there uh you know with 32:09 32 minutes, 9 seconds the capacity additions that are expected to come in this segment coupled with our you know pipeline of the new products 32:17 32 minutes, 17 seconds that we are going to launch. So we are excited about this segment uh and I think we'll be able to uh m you know 32:24 32 minutes, 24 seconds grow our market share in this uh segment quite well. 32:29 32 minutes, 29 seconds Understood. Understood. Any reaction from the competition so far and would you aspire for double digit market share here? 32:37 32 minutes, 37 seconds Aspiration wise definitely. you know uh doms has always whenever we've entered any category uh you know we've always uh 32:45 32 minutes, 45 seconds entered with the intention of being amongst the top players and uh for almost most of the categories that we are present today we've achieved that 32:54 32 minutes, 54 seconds seat so you know not only in uh uh or office supplies but in all the new categories that we are entering into 33:03 33 minutes, 3 seconds that's the aspiration uh and we hope we'll be able to come through to our aspirations. 33:11 33 minutes, 11 seconds Uh in terms of competition, you know, uh you you study terms very well. Uh you 33:18 33 minutes, 18 seconds know as a company we look more at ourselves in terms of where we want to be, how we want to reach there. Uh we 33:26 33 minutes, 26 seconds really don't uh look at what the competition is doing or not doing for that matter. uh we believe we should continue to focus on our own core trends 33:35 33 minutes, 35 seconds which is uh product product designing product engineering and uh if we bring the right product to our consumer at the 33:43 33 minutes, 43 seconds right value uh I think we'll see success in all the segments that we are present and intend to get into. 33:51 33 minutes, 51 seconds Understood. Uh thanks. Second one is can you talk about hobby and there seems to be a sharp increase led by digital 33:58 33 minutes, 58 seconds sales. uh how large is the market like whether we should expect the current run rate or a further acceleration how should we look at hobby and craft. 34:08 34 minutes, 8 seconds So uh could I mean uh you know uh hobby and craft basically for us constitutes 34:14 34 minutes, 14 seconds of modeling material uh craft material uh glues, adesses, gums. Uh during the 34:22 34 minutes, 22 seconds previous year we had added capacities uh primarily in the adessive segment. uh introduced the product with a very 34:31 34 minutes, 31 seconds differentiated sort of a product uh which uh slowly gradually is seeing positive response from the market. Uh 34:40 34 minutes, 40 seconds and hence you see that the uh hobby and craft segment has grown uh significantly both from a uh you know compared to the previous year as well as sequentially. 34:53 34 minutes, 53 seconds uh difficult to guess the size of the adessive market because you know our focus there is mainly on scholastic 35:00 35 minutes adessives and glues you know we don't intend to get into the uh B2B uh adessive segment so that bifurcation is 35:08 35 minutes, 8 seconds not available uh but having said that we believe in the scholaric addressessive segment uh you know considering the uh 35:15 35 minutes, 15 seconds differentiated product offering our distribution uh reach within the uh stationary segment and are uh you know 35:23 35 minutes, 23 seconds deepening trust from our uh consumers will help us to grow uh this business to a decent level. 35:31 35 minutes, 31 seconds Understood. So there is no one-off in this quarter and we should be building in further improvement in sales sequentially from here. 35:38 35 minutes, 38 seconds So yes, now the capacity utilizations are improving in this segment because there was new capacities that were added in the previous year utilizations are uh 35:47 35 minutes, 47 seconds improving. So you know uh we should expect uh the gradual increase in this segment as well. 35:55 35 minutes, 55 seconds Understood. Understood. And in terms of the new plant uh I would assume that benefits will only start coming in the fourth quarter. So with that what are 36:03 36 minutes, 3 seconds the early estimates for how does FY27 look like because you'll have continued uh new capacity additions coming in 36:10 36 minutes, 10 seconds starting fourth quarter. So any any thoughts on like how we should be looking at FY27? 36:18 36 minutes, 18 seconds Uh uh basically we intend we target to have the first uh billing for the new plant happening in 36:27 36 minutes, 27 seconds the fourth quarter. Real capacity addition uh impact on meaningful impact on sales will start uh building in from uh quarter one of FY27. 36:38 36 minutes, 38 seconds Uh so it would be a little too early to uh you know uh determine how much uh we 36:44 36 minutes, 44 seconds would uh you know get benefits in FI27 but uh historically we've tried to 36:52 36 minutes, 52 seconds maintain our growth rates uh you know at that uh range uh about 18 to 20%. And 37:00 37 minutes given the capacity additions that are planned uh as well as uh you know the uh 37:07 37 minutes, 7 seconds market sentiments we believe that we should be able to reach that but we'll come back to you all with the proper 37:13 37 minutes, 13 seconds guidance once a couple of quarters uh so sure and lastly domestic retail outlets 37:21 37 minutes, 21 seconds uh there was a slight dip last quarter this time looks like you added 10,000 outlets also you added to be a little honest here the number 37:29 37 minutes, 29 seconds which were given in the domestic distribution network for doms uh in the last uh uh quarter there was a typo 37:38 37 minutes, 38 seconds error in it uh the number of retail outlets have to see also Q4 also and Q1 of FI26 37:48 37 minutes, 48 seconds understood undersod yeah okay okay that's it from me thank you thank you thank you thank you our next question is 37:56 37 minutes, 56 seconds from the line of Jav Shikha from Ambit Capital. Please go ahead. 38:01 38 minutes, 1 second Uh, sure. Thanks a lot for taking my question. Ra, my first question is with respect to office supplies. I think we have consistently seen the way you have 38:09 38 minutes, 9 seconds grown the revenues there. Could you just talk about uh in terms of distribution network? How well spread is that at the moment? Have you covered all the retail 38:18 38 minutes, 18 seconds outlets that you supply the rest of the stationary via these office supplies? 38:22 38 minutes, 22 seconds And then what kind of throughput increase do you expect from the existing distribution channel possibly by the end of the year? 38:29 38 minutes, 29 seconds Uh hi. Hi. Uh we've not been able to still ramp up our sales in uh office 38:36 38 minutes, 36 seconds supplies to the entire network. There are still uh quite a few uh regions where uh you know we still to enter 38:46 38 minutes, 46 seconds because we still have a constraint uh in terms of capacity. 38:51 38 minutes, 51 seconds uh once the new capacity additions which are planned for the current financial year uh come into production we'll be 38:58 38 minutes, 58 seconds able to ramp up our production uh our sales and distribution of uh writing instrument spends to uh the entire uh 39:07 39 minutes, 7 seconds universe that we are servicing today uh should happen once by the end of this year or probably with the new capacities that are planned for the coming years. 39:18 39 minutes, 18 seconds uh if you could repeat the second half of the question. 39:22 39 minutes, 22 seconds I think it was just in terms of uh the throughput increase that you expect from the same channel. So as per your understanding will it be 50% of the 39:30 39 minutes, 30 seconds channel that you've covered 60%age is there any number in your mind that you have covered in terms of distribution network? 39:37 39 minutes, 37 seconds No, there's no specific number or a target uh in mind. It is going to be a gradual process as in when the capacity 39:44 39 minutes, 44 seconds additions happen. We'll want to increase our reach uh you know with uh the uh 39:50 39 minutes, 50 seconds pens and a lot of other new products that we have launched. Uh but definitely the focus continues to remain on 39:59 39 minutes, 59 seconds increasing our throughput uh in each of the current store that we are present. 40:05 40 minutes, 5 seconds So uh you know we will uh gradually start uh selling tens and other uh items new products in these existing stores as and when new capacities come in. 40:16 40 minutes, 16 seconds Sure. 40:17 40 minutes, 17 seconds So my second question was in respective of colastic stationary art material and kits and comos. So if I say sequentially I think there has been a good growth 40:25 40 minutes, 25 seconds that has come in. I was under the impression that there were not a lot of capacity that has been added on the stationary and art material segment. So 40:33 40 minutes, 33 seconds has there been some outsourcing that has happened or is there a demand pickup from those segments that have happened? 40:37 40 minutes, 37 seconds Could you explain what has been driving that sequential growth from versus the last fourth quarter to first quarter? 40:44 40 minutes, 44 seconds Uh so sequentially you know uh there's a little bit of impact that happens because of the back to school season. Uh 40:52 40 minutes, 52 seconds so you tend to see a little more uh you know uh sales picking up in this uh the 40:59 40 minutes, 59 seconds first quarter for these uh uh categories. Uh as well as what happened was you know certain uh export orders 41:08 41 minutes, 8 seconds which you know uh were uh you know partially ready in the month in the fourth quarter were serviced in the 41:16 41 minutes, 16 seconds first quarter. So there was this slide at a product mix level. You know when you see specifically at a product mix 41:22 41 minutes, 22 seconds level uh uh this uh impact was seen uh and also what you see uh sequentially 41:30 41 minutes, 30 seconds you know kits and combos have done a little lower and individual items of scholastic stationary and art material have done slightly better. 41:39 41 minutes, 39 seconds So these are the key reasons why uh you see the sales growing. It's not that there have been any uh meaningful capacity additions that have come. 41:49 41 minutes, 49 seconds Sure. Sure. I think that's helpful. So last question is in terms of new capacity expansion for the 44 acre one. 41:55 41 minutes, 55 seconds So what sort of a headcount increase overall approach would you expect and also the overall employee cost that you expect for possibly for the next year once it comes online? 42:08 42 minutes, 8 seconds Uh so there is basically 44 acres is going to be a large project where eventually we'll have uh operational 42:16 42 minutes, 16 seconds area of about 1.8 to 2 million uh square ft. Uh when this entire uh project comes 42:24 42 minutes, 24 seconds in uh we believe we'll require uh about uh 12 to 13,000 people similar to the workflow that we have uh right now. So 42:32 42 minutes, 32 seconds it's uh uh going to actually double once the project is uh completely operationalized but it will be gradual 42:40 42 minutes, 40 seconds as in when you know new buildings come under production you'll gradually increase your uh workforce uh strength. 42:48 42 minutes, 48 seconds uh our employee cost you know right now is uh close to about 14%, uh we believe 42:55 42 minutes, 55 seconds and if you see historically this numbers been uh you know coming down uh slightly and that's uh primarily because of uh 43:03 43 minutes, 3 seconds economies of scale. So that benefit we'll continue to get but we continue to have a large workforce also. So it's 43:10 43 minutes, 10 seconds going to be a significant cost for the company. 43:14 43 minutes, 14 seconds Sure. Sure. Sure. Thanks a lot and all the best. Thank you. 43:20 43 minutes, 20 seconds Thank you. Our next question is from the line of Aneruda Jooshi from ICICI Securities Limited. Please go ahead. 43:30 43 minutes, 30 seconds Yeah. Uh so just two questions. Uh so in terms of pen business, we see there is a 43:37 43 minutes, 37 seconds uh vacuum at the medium end or the top end of the market. I mean there are brands like Pilot or uh uh to some 43:46 43 minutes, 46 seconds extent Parker or Mont Blanc but still there is a good amount of vacuum and potential to grow in the top end of the 43:55 43 minutes, 55 seconds uh market too. So uh any strategy that doms has got to in a way expand in this 44:02 44 minutes, 2 seconds uh uh medium end or the top end of the market for pens that is one and secondly uh if you can indicate about the current 44:11 44 minutes, 11 seconds distribution structure of pence uh and how it will shape up in let's say fi27 and uh beyond also. So that is question 44:19 44 minutes, 19 seconds number one and then question number two uh the way doms is growing uh obviously means like literally doubling revenues 44:27 44 minutes, 27 seconds in 3 years. So uh the company will definitely require a lot of investments in new management bandwidth as well as 44:36 44 minutes, 36 seconds technology also. So what is the strategy uh over here to invest in terms of the or or strengthen the management as well 44:45 44 minutes, 45 seconds as the uh strengthen the internal uh technology spends also. Yeah, that's it that two two questions from my side. 44:53 44 minutes, 53 seconds Thanks Anil. So Anai uh firstly uh you know to answer your first question uh if you look at doms you'll uh you'll 45:02 45 minutes, 2 seconds appreciate that our primary uh you know customers consumers are scholastic uh 45:09 45 minutes, 9 seconds children and uh college students and you know if you look at the demand or the 45:16 45 minutes, 16 seconds products that they use is mainly your uh entry-level price point sales like rupees 5, rupees 10, rupees 45:24 45 minutes, 24 seconds So these is going to be the primary segment that we'll be focusing on in the uh near to midterm. you know going 45:32 45 minutes, 32 seconds forward uh we might uh you know it's a little early to say when we will enter the premium segment and in the premium 45:41 45 minutes, 41 seconds segment also at what price points something like a mobile or something is like a a very very high price point 10 45:50 45 minutes, 50 seconds which is also sold in a very different sort of a distribution network. So uh our product uh strategy will revolve 45:58 45 minutes, 58 seconds around our consumer base and our distribution uh channel where we are already present. So gradually we'll 46:06 46 minutes, 6 seconds definitely move up in terms of the uh introducing products uh at the higher side. So rupee uh and rupee 10 cents 46:16 46 minutes, 16 seconds would uh predominantly be larger share in the overall chain. 46:23 46 minutes, 23 seconds uh to answer the second part of your first question in terms of the distribution of pens like I mentioned earlier there are certain regions where 46:31 46 minutes, 31 seconds we still not introduce the pens because of the constraints that we have in terms of capacity uh as and when new capacity 46:39 46 minutes, 39 seconds additions come in we'll want to introduce this through uh throughout the country uh in terms of the distribution 46:46 46 minutes, 46 seconds channel these are sold in the same distribution channel where we are present right Now uh it's going to be 46:55 46 minutes, 55 seconds the same distribution network that we leverage uh for growing our business further. 47:01 47 minutes, 1 second Uh to answer your second question, uh definitely with the increase in uh the 47:08 47 minutes, 8 seconds production capacities, uh we are also mindful of the fact that we require higher uh manpower, higher 47:17 47 minutes, 17 seconds management benefits and you know active steps are being taken in terms of identifying 47:24 47 minutes, 24 seconds uh people within the organization structure uh you know taking them to a 47:31 47 minutes, 31 seconds uh higher position uh to manage activities efficiently. Also what will happen is once you start having uh you 47:40 47 minutes, 40 seconds know a a larger uh manufacturing base in a single location the efficiency of the 47:48 47 minutes, 48 seconds people also improves because you know it's easier to uh oversight the operations. So uh we are in that process 47:57 47 minutes, 57 seconds of uh you know continuously hiring and uh from out as well as uh promoting people from within the organization 48:05 48 minutes, 5 seconds based on their performance and with respect to systems uh that is something which is like a ongoing process. This is 48:13 48 minutes, 13 seconds not only uh for uh production activities but even for uh market activities even 48:20 48 minutes, 20 seconds from a DMS and Salesforce automation software that we use. We are continuously enhancing all these uh 48:28 48 minutes, 28 seconds systems to meet uh our requirements. The systems that we already use are uh something which are best available in 48:37 48 minutes, 37 seconds the market. For example, SAP for our as we have seen it is a scalable platform you know with uh uh with increasing uh 48:47 48 minutes, 47 seconds overall turnover volume these uh software will be able to scale up and the company continues to uh improving 48:56 48 minutes, 56 seconds and enhancing the features of the existing uh systems to meet our requirements. 49:06 49 minutes, 6 seconds Okay. Surely this is uh very very helpful. Many thanks. 49:13 49 minutes, 13 seconds Thank you. Our next question is from the line of Percy from IFL Securities. 49:20 49 minutes, 20 seconds Please go ahead. 49:23 49 minutes, 23 seconds Uh uh hi uh Rahul, congrats on a good set of numbers. Uh my question is on the 49:29 49 minutes, 29 seconds uh 44 acre uh uh land, what is the total capeex that we have done till date? till 49:37 49 minutes, 37 seconds uh let's say 30th of June what is the total capeex it might not be showing up in the uh gross block because it might 49:44 49 minutes, 44 seconds be in CWIP but what is the total uh excluding land the gross block plus CWIP if you can tell me for the 44 acre plant 49:54 49 minutes, 54 seconds so uh what we would have done for the 44 acre plant can be durated into two parts 50:01 50 minutes, 1 second one is for the construction activities and the other is for ordering of uh plant and machinery and some of those 50:10 50 minutes, 10 seconds plant and machinery we've also uh you know uh got in our uh uh factories and 50:17 50 minutes, 17 seconds uh started production at some alternative location in between but having put all together the k that we would have done for this would be close to 150 crores. 50:29 50 minutes, 29 seconds Okay, got it. And how much more will happen in the next uh uh uh 9 months? 50:37 50 minutes, 37 seconds Uh the total kings outflow that we've planned for this uh financial year is 50:43 50 minutes, 43 seconds about uh 210 to 225 crores. Out of this like I said we've already invested about 50:50 50 minutes, 50 seconds 70 odd crores. uh the balance of about uh 160 to 160 crores uh you know 50:58 50 minutes, 58 seconds predominantly uh go into the 44 acre project. 51:04 51 minutes, 4 seconds Okay. So by the end of this year we would have invested about uh 300 cr in the 44 uh acre project. Uh uh do you 51:13 51 minutes, 13 seconds expect this entire 300 cr to be capitalized or there would be still a material part in CWIP? 51:21 51 minutes, 21 seconds No, there will still be a material part in CWIP. Uh because uh you know there are multiple uh buildings which are 51:29 51 minutes, 29 seconds being constructed together. Uh so only the buildings which will you know we'll get possession uh that will be 51:36 51 minutes, 36 seconds capitalized one by one. The way the entire project is planned per person is uh once we get the possession of the 51:43 51 minutes, 43 seconds first building, we would want to get the possession of the next building in another 3 months because that is the time that we will require the 90-day 51:52 51 minutes, 52 seconds period in between two possessions to set up the commercial production of that particular first building. So the way the activities are planned is uh every 52:01 52 minutes, 1 second quarter keep getting 111 buildings. uh and that is why not everything would get uh capitalized. 52:09 52 minutes, 9 seconds So what I'm trying to understand is that like how much turnover you can generate from the new uh plant in FI27. So let's 52:19 52 minutes, 19 seconds say about let's say about uh 150 uh cr or 200 cr would be let's say capitalized by the end of this year. uh putting a 3x 52:29 52 minutes, 29 seconds uh uh uh sort of asset turns on that can we say roughly about 500 cr can be at least from supply side demand side is a 52:37 52 minutes, 37 seconds different thing but from a supply side you are prepared to uh supply 500 cr worth of products uh uh in FI27 from the 52:46 52 minutes, 46 seconds new plant would that be a fair estimate person what will what is also happening is in the new uh payex that is happening 52:56 52 minutes, 56 seconds for 44 4 acre a lot of apex is happening towards the building of the utilities and infrastructure for the entire plant. 53:04 53 minutes, 4 seconds So uh let's say you know let's say utilities in terms of power and all the entire uh as soon as we start using 53:11 53 minutes, 11 seconds power we'll capitalize the entire amount that has been invested but this is going to be it's been invested since that size 53:19 53 minutes, 19 seconds and extent which will fulfill the requirement of the entire project right so on that you will not be able to see 53:26 53 minutes, 26 seconds like a 3x on the year first also year one also so it wouldn't be like 3x 53:34 53 minutes, 34 seconds Eventually uh we would want to reach like a 3x sort of a number but to start with I think it would be fair to assume 53:41 53 minutes, 41 seconds we'll start with like a two 2.25 25 and gradually move towards 3x. So this is not a new project you know. 53:49 53 minutes, 49 seconds Then there is existing projects where we continue to do uh capacity addition in 53:56 53 minutes, 56 seconds terms of modernization plus uh in the uh early part April and late March 2025 we 54:04 54 minutes, 4 seconds added some uh infrastructure also. So you know all these things would aid uh 54:10 54 minutes, 10 seconds in terms of achieving our growth target for FI27. 54:16 54 minutes, 16 seconds Understood. No, the only reason why I'm asking no because uh uh when at the time of IPO uh we had come to the plant uh uh 54:25 54 minutes, 25 seconds our understanding was that already the old plant is uh very near sort of uh reaching full capacity and even the 54:33 54 minutes, 33 seconds empty spaces in the new plant was not that much that we can do a lot of green field in the sorry old plant I'm saying 54:41 54 minutes, 41 seconds uh we did not see that much empty space that uh there can be huge amount of green field in the old So just concerned 54:48 54 minutes, 48 seconds that if basically the new plant does not uh uh start contributing uh uh soon uh 54:56 54 minutes, 56 seconds then uh uh will there be a capacity constraint to growth because we need by FI27 FI28 we need let's say 452 500 cr 55:07 55 minutes, 7 seconds of I mean at least 450 cr of additional turnover on a YI basis. uh we need that 55:14 55 minutes, 14 seconds to come and assuming that uh the 26 acre plant does not have much uh more in terms of uh uh expanding capacity that 55:23 55 minutes, 23 seconds will have to come from the new plant only right so first thing your plant visit is now 55:30 55 minutes, 30 seconds due you should come to the plant sooner uh because happened from the time of the IPO till now 55:38 55 minutes, 38 seconds uh you know joining our current flagship plant where you'd visited During the IPO, we we were able to acquire more 55:48 55 minutes, 48 seconds space uh uh some on lease and a large portion uh we purchased. Uh plus uh in 55:56 55 minutes, 56 seconds March of uh this year, we were also able to purchase a uh land uh in GDC uh very 56:03 56 minutes, 3 seconds close to our existing plants which is uh which has a ready building of about uh 56:11 56 minutes, 11 seconds 120,000 square ft. Uh right now we are just doing some renovations and uh uh changes there which are required for our 56:20 56 minutes, 20 seconds uh systems. uh so all this is also going to age so it's not that during from the IPO till now the capeex has happened 56:29 56 minutes, 29 seconds only towards 44 acres you know there have been capacity additions that have happened at other parts also plus uh in 56:37 56 minutes, 37 seconds our subsidiary companies Pioneer uh we've added uh you know production of uh paper stationary capacity when you 56:45 56 minutes, 45 seconds visited Pioneer you would have seen two lines of automatic uh book manufacturing companies that has almost doubled. Plus we 56:54 56 minutes, 54 seconds acquired uh super trends recently uh where we are getting more capacity uh which will help us in increasing our 57:02 57 minutes, 2 seconds paper stationary business also. So uh you know every it's planned uh when I'm saying that you know we will aspire to 57:10 57 minutes, 10 seconds continue uh growing at this level uh going forward also uh so for that the required capex and planning already 57:19 57 minutes, 19 seconds happened. So probably uh my request to you would be to plan a plant visit uh very soon so that you could also see uh 57:28 57 minutes, 28 seconds in addition to the 45 acre project uh additional uh enhancement increase that we would have from a physical infrastructure perspective. 57:39 57 minutes, 39 seconds Understood R. Very helpful. And last question from my side is can you tell me what is your capacity utilization in paper stationary and in pens? 57:51 57 minutes, 51 seconds uh first of all uh you know our capacity utilization is something you know which we don't uh you know drag on from that 57:59 57 minutes, 59 seconds perspective because uh uh paper stationary for example it's a slightly sort of a seasonal business. So and plus 58:08 58 minutes, 8 seconds it's a very modernized uh fully automatic uh uh uh manufacturing process 58:15 58 minutes, 15 seconds which during season time we operationalize for additional uh time also uh in the pen segment like I said 58:24 58 minutes, 24 seconds you know we continue to be remain constrained with capacity and uh so we are utilizing uh what we have right now 58:32 58 minutes, 32 seconds and uh but there are capacity additions which are already planned which are gradually coming. 58:41 58 minutes, 41 seconds Hello. Hello. 58:45 58 minutes, 45 seconds I think we lost uh uh Rahul we have Yeah. Yeah. Sorry Raul I could not hear you. Yes please continue. 58:55 58 minutes, 55 seconds Yeah. So uh like in paper stationary I explained that capacity addition came in and it's a slightly seasonal business. 59:04 59 minutes, 4 seconds So you know uh once the new season starts I think we've got uh enough capacity to meet the anticipated uh targets that we have for that segment. 59:15 59 minutes, 15 seconds Uh and for pens our utilization would be uh near optimal right now but there are 59:22 59 minutes, 22 seconds new capacity additions which are happening as we see. So you know every uh quarter we see some uh capacity 59:30 59 minutes, 30 seconds additions happening in our existing infrastructure for the pen segment also and when I say existing means what uh 59:37 59 minutes, 37 seconds you visited plus what we've acquired uh adjacent to our current population. 59:49 59 minutes, 49 seconds The line for the current participant has been disconnected. Our next question is from the line of Priyanka from Walum Capital. Please go ahead. 59:58 59 minutes, 58 seconds Hi. Uh hi Rahul by uh thank you for the opportunity. Uh I just had a question if we can uh call out uh the volume growth 1:00:07 1 hour, 7 seconds and the AS for the core stationary business like we mentioned in the last quarter. Sorry we cannot hear you well. 1:00:15 1 hour, 15 seconds Hello. Uh am I audible? 1:00:18 1 hour, 18 seconds Yes sir. You audible. The line is not very clear. you can you hear me? Hello. 1:00:26 1 hour, 26 seconds Can you hear him? 1:00:28 1 hour, 28 seconds Yes, I can hear him loud and clear. Sir, just uh read your question slow so that management could understand it. 1:00:37 1 hour, 37 seconds Sure. 1:00:38 1 hour, 38 seconds Priyank sir. Yeah, thank you. Please go ahead. 1:00:40 1 hour, 40 seconds Sure. My question is uh would it be possible to call out the volume and the ASP growth in the core stationary 1:00:48 1 hour, 48 seconds business for this quarter like we called out in the last quarter? 1:00:53 1 hour, 53 seconds So uh brim uh very difficult to uh give from a uh you know overall perspective because you know right now like you saw 1:01:01 1 hour, 1 minute, 1 second in this quarter sequentially if you see the volume of kits and combination pack the value plus volume has come down a 1:01:09 1 hour, 1 minute, 9 seconds little uh because uh being a back to school season a lot of individual demand for individual products increases a little and you know we have that 1:01:18 1 hour, 1 minute, 18 seconds flexibility in terms of meeting the requirements of the market accordingly. 1:01:23 1 hour, 1 minute, 23 seconds But uh having said that uh the majority of the sales growth that you see sequentially at a overall level is 1:01:31 1 hour, 1 minute, 31 seconds predominantly because of uh you know uh volume growth uh uh with some part being aided by uh increase in average selling sizes. 1:01:41 1 hour, 1 minute, 41 seconds It's very clear. Uh my second question is on the uh expansions uh in the in the existing uh plot area not the new 44 1:01:51 1 hour, 1 minute, 51 seconds acre land. uh we were coming up with a uh pencil uh expansion from I think 5.5 million per day to 8 millions. Uh by 1:02:00 1 hour, 2 minutes when is that expected? And as well as if you can also touch upon the books uh capacity addition that we were planning to add another 15% capacity over there 1:02:09 1 hour, 2 minutes, 9 seconds the pens capacity also we were planning to add by 15%. So what is the status of all those capacity expansions outside 1:02:17 1 hour, 2 minutes, 17 seconds the 44 acre uh if you can call out will be helpful. 1:02:23 1 hour, 2 minutes, 23 seconds Uh basically the 10 capacity addition like you rightly said is expected to increase from 5.5 million to 8 million. 1:02:31 1 hour, 2 minutes, 31 seconds Uh some of the parts in that expansion have already happened. Uh the finishing from where we'll be able to make the 1:02:38 1 hour, 2 minutes, 38 seconds finished product is something which will uh happen in uh Q4 of FI 20 uh 6 and Q1 1:02:47 1 hour, 2 minutes, 47 seconds to mid of Q2 FI 27. So probably by you know same time next year when we'll be 1:02:54 1 hour, 2 minutes, 54 seconds talking we'll see a substantial part of this capacity addition coming in uh you know in terms of uh bends uh like I 1:03:04 1 hour, 3 minutes, 4 seconds mentioned earlier there are capacity additions that are happening as we speak and this is going to be a gradual process but you know you should uh 1:03:12 1 hour, 3 minutes, 12 seconds remember that uh a lot a lot of our capacities uh especially at the molding 1:03:19 1 hour, 3 minutes, 19 seconds uh part is very funible. So depending upon the market dynamics and requirements, we will adjust ourselves 1:03:27 1 hour, 3 minutes, 27 seconds to uh you know uh the requirements of the market. Uh but in addition to pens 1:03:34 1 hour, 3 minutes, 34 seconds and pencils in the new expansion, we believe we'll be adding a lot of capacity for other aspects of the 1:03:41 1 hour, 3 minutes, 41 seconds writing instrument segments like markers, highlighters, some of the pencil, pencil accessories like erasers, sharpeners. 1:03:50 1 hour, 3 minutes, 50 seconds uh so across the board uh as and when we'll gradually keep getting additional infrastructure we'll keep adding capacity uh looking both in terms of the 1:03:59 1 hour, 3 minutes, 59 seconds demand of the market uh both in India as well as internationally got it so for pencil which is stationary 1:04:09 1 hour, 4 minutes, 9 seconds till the time sorry to interrupt priyang sir we have lots of people in the queue waiting I request you to rejoin the question 1:04:17 1 hour, 4 minutes, 17 seconds thank you so much our next question is from the sign of Akash Sha from UTI Mutual Fund. Please go ahead. 1:04:25 1 hour, 4 minutes, 25 seconds Um uh hi, hi sir. Am I audible? Hi, good morning. Yes sir, are you audible? 1:04:31 1 hour, 4 minutes, 31 seconds Um yeah. Um sir, thank you. Thank you for the opportunity. Uh so just wanted to ask what are the key risk uh that uh 1:04:39 1 hour, 4 minutes, 39 seconds you are uh worried about uh in the business? I mean u uh we we understand 1:04:47 1 hour, 4 minutes, 47 seconds certainly uh the growth uh uh potential as well as uh uh healthy margins but sir 1:04:54 1 hour, 4 minutes, 54 seconds I mean what are the key risks that uh uh that uh you see and how you mitigate those. 1:05:04 1 hour, 5 minutes, 4 seconds So uh uh Akash basically we been asked this question earlier as well and probably our response continues to be 1:05:12 1 hour, 5 minutes, 12 seconds the same uh where you know we believe that the uh key foremost risk that we see uh in the business is our ability to 1:05:22 1 hour, 5 minutes, 22 seconds timely uh increase our capacity. uh you know we believe that the market and the demand both in India internationally is 1:05:31 1 hour, 5 minutes, 31 seconds strong for our products and uh we would want to capitalize on this demand uh as 1:05:38 1 hour, 5 minutes, 38 seconds best as and efficiently as possible and this will be uh we'll be able to achieve this only if there is uh timely uh 1:05:47 1 hour, 5 minutes, 47 seconds capacity additions that happen. So this uh in our view continues to be our the foremost risk that we see in our business. 1:05:58 1 hour, 5 minutes, 58 seconds Sure. Sure sir. And on on demand front you are reasonably confident that market will be able to absorb u the incremental 1:06:07 1 hour, 6 minutes, 7 seconds capacity that we are going to come with come up with. 1:06:12 1 hour, 6 minutes, 12 seconds Uh yes uh we continue to be very uh positive about the uh you know uh the demand scenario. uh uh the you know Doms 1:06:21 1 hour, 6 minutes, 21 seconds as a brand is continues to see uh increasing acceptance uh uh not only in 1:06:28 1 hour, 6 minutes, 28 seconds India but in uh uh international markets also. So as soon as our capacities increase we'll be able to service that 1:06:36 1 hour, 6 minutes, 36 seconds demand better. Uh so demand doesn't seem uh at work to be a challenge right now but uh it's more of when we'll be able 1:06:45 1 hour, 6 minutes, 45 seconds to uh uh service that demand and that's where the capacity additions will come in handy. 1:06:54 1 hour, 6 minutes, 54 seconds Um sure thank you. Thank you sir. 1:06:58 1 hour, 6 minutes, 58 seconds Thank you. Our next question is from the line of Mosam Sha from Wealth Guardian. Please go ahead. 1:07:05 1 hour, 7 minutes, 5 seconds Hello. Am I audible? Yes, you're audible. Yes, go ahead. 1:07:11 1 hour, 7 minutes, 11 seconds Congratulations on a good set of numbers. 1:07:14 1 hour, 7 minutes, 14 seconds Uh so basically I just wanted to know uh recently there was a news there was a shortage of popular wood that is the primary raw material for wooden pencils. 1:07:25 1 hour, 7 minutes, 25 seconds Uh are we facing any sort of shortage? Uh as of now as we speak mam not really. 1:07:34 1 hour, 7 minutes, 34 seconds uh did that when there was some uh warlike situation because the valley was entirely shut. That time you know we did 1:07:42 1 hour, 7 minutes, 42 seconds uh face uh some uh challenges but uh as we've always fainted you know for some 1:07:49 1 hour, 7 minutes, 49 seconds key raw materials which we believe are sensitive to our business. We have uh significant stocks uh sometimes as high 1:07:57 1 hour, 7 minutes, 57 seconds as uh 6 months of uh production requirement uh in stocks. So uh uh we 1:08:05 1 hour, 8 minutes, 5 seconds are not seeing any challenge and plus uh we believe that the uh product the popular wood that we uh use which comes 1:08:13 1 hour, 8 minutes, 13 seconds from the Kashmir valley region uh where a lot of uh you know uh government 1:08:20 1 hour, 8 minutes, 20 seconds initiatives have been taken to empower the se the farmers there to farm this 1:08:27 1 hour, 8 minutes, 27 seconds cultivated wood. So we believe that supply should would not be a challenge and uh also uh in terms of our uh pencil 1:08:36 1 hour, 8 minutes, 36 seconds there are different types of wood that we use. Copar is definitely one of them. 1:08:40 1 hour, 8 minutes, 40 seconds Uh there is uh butter wood also that we use which comes from southern part of India. Uh there is also baths wood which 1:08:48 1 hour, 8 minutes, 48 seconds we import from uh Europe. So there are multiple uh uh uh purchase destinations 1:08:56 1 hour, 8 minutes, 56 seconds also which are there. So we uh do not see that as challenging right now. 1:09:02 1 hour, 9 minutes, 2 seconds Okay, good. That's helpful. Um the second question was related some bags because since after introduction this 1:09:09 1 hour, 9 minutes, 9 seconds was the first year uh where we have introduced bags and so what is the demand scenario and uh how how how we have conquered that. 1:09:23 1 hour, 9 minutes, 23 seconds So uh basically we uh launched the uh dogs branded bags in uh time for this 1:09:31 1 hour, 9 minutes, 31 seconds back to school season. Uh it was started with uh minimal uh sort of uh uh product 1:09:38 1 hour, 9 minutes, 38 seconds offering because like I said we still want to test the markets to understand what products work. you know bags in 1:09:46 1 hour, 9 minutes, 46 seconds terms of SKUs are always defined in terms of their volume capacity plus number of zips uh number of you know uh 1:09:56 1 hour, 9 minutes, 56 seconds uh sections holders that they have. So we've introduced multiple uh SKUs. Uh we 1:10:03 1 hour, 10 minutes, 3 seconds are getting uh feedback what is working, what changes they would like to see in terms of the product. We are getting 1:10:11 1 hour, 10 minutes, 11 seconds feedback also you know from uh encourages feedback from retailers where they're saying they want the product packaging to be changed a little so they 1:10:19 1 hour, 10 minutes, 19 seconds can probably sell bags also as a gifting article. So we're getting those feedback. Uh we are working on it. we 1:10:27 1 hour, 10 minutes, 27 seconds are trying to uh improve our SKUs further. Uh so uh this business also 1:10:34 1 hour, 10 minutes, 34 seconds will continue to grow. Uh I think a couple of years more uh from when then we'll be able to grow substantially the uh the back to school segment. 1:10:46 1 hour, 10 minutes, 46 seconds Okay. Okay. Uh okay. And the lastly was um so we are assisting FILA in terms of sourcing quality products at competitive 1:10:54 1 hour, 10 minutes, 54 seconds prices. So are these raw materials or the products that dos make? 1:11:02 1 hour, 11 minutes, 2 seconds You know this is products that do manufactures and sells to fela and fela group companies across the uh world 1:11:11 1 hour, 11 minutes, 11 seconds doing any raw material sourcing for them right? No no no no no we don't we don't uh we we don't do that trading sort of a 1:11:18 1 hour, 11 minutes, 18 seconds thing like buy here and sell to I don't know uh there might be certain times where you know for testing purposes and 1:11:26 1 hour, 11 minutes, 26 seconds sampling purposes we would have done it but it's not like a a business segment or anything like a key business driver 1:11:34 1 hour, 11 minutes, 34 seconds okay thank you so much and all the very best thank you thank you ladies and gentlemen that was 1:11:42 1 hour, 11 minutes, 42 seconds the last question for today. I now hand the conference over to the management for closing comments. Over to you, sir. 1:11:51 1 hour, 11 minutes, 51 seconds Uh thank you everyone. Uh on behalf of Dom's uh I would like to thank you all once again uh for joining us on this 1:11:59 1 hour, 11 minutes, 59 seconds call today. Uh we hope we've been able to answer your queries. Uh please feel free to reach out to our investor 1:12:06 1 hour, 12 minutes, 6 seconds relations team for any further clarification or queries that you may all have. uh would also request all of 1:12:14 1 hour, 12 minutes, 14 seconds you all to you know probably make some time out to re uh you know visit our facilities uh in Omar Gao uh to see what 1:12:23 1 hour, 12 minutes, 23 seconds uh new additions and new infrastructure is being built up there. Uh once again uh thank you so much wish you all a good day. Thank you once again. 1:12:34 1 hour, 12 minutes, 34 seconds Thank you on behalf of ICICI Securities Limited. That concludes this conference. 1:12:39 1 hour, 12 minutes, 39 seconds Thank you for joining us. And you may now disconnect your lines.