EPACK Durable Limited — Q2 FY26

Epack Durable Ltd Q2 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=ipMLdGD91bc Published: 6 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the EPAC durable build Q2 and H1FI26 0:07 7 seconds earnings conference call hosted by DAM Capital Advisors Limited. 0:13 13 seconds As a reminder, all participant lines will be in the listenon mode and there will be an opportunity for you to ask 0:21 21 seconds questions after the presentation concludes. 0:24 24 seconds Should you need assistance during the conference, please signal an operator by pressing star then zero on your 0:31 31 seconds touchstone phone. Please note this conference is being recorded. I now hand the conference over to Miss Bhumika Nayer. Thank you and over to you ma'am. 0:44 44 seconds Thanks. Um good morning everyone and a warm welcome to the Q2 FI26 earnings call of EPA Euro Limited. We have the 0:52 52 seconds management today being represented by Mr. Ajay Singha, managing director and CEO, Mr. Narayan Loda, executive 0:59 59 seconds director and group CFO and Mr. Rajesh Kumaran Mittal, CFO. At this point, I'll hand over the floor to Mr. Narayan Loda 1:06 1 minute, 6 seconds for his initial remarks. Post which we'll open up the floor for Q&A. Thank you and over to you sir. 1:14 1 minute, 14 seconds Thank you. Good morning everyone. I'm Nan Doda, executive director and group CFO of EPAD group. I warmly welcome all 1:23 1 minute, 23 seconds of you to our quarter 2 of financial year 2026 earning conference call. The board of directors have approved the 1:30 1 minute, 30 seconds quarter 2 of financial year 2026 result on 4th November 2025 and I trust you have all had the 1:40 1 minute, 40 seconds opportunity to review them. EP durable is India's second largest ODM for room air condition. We are consciously 1:48 1 minute, 48 seconds executing our strategy to diversify beyond core RA into higher growth categories 1:56 1 minute, 56 seconds namely small domestic appliances, large domestic appliances and component business. Joining me on the call today 2:03 2 minutes, 3 seconds Mr. Aidi Singhanya our managing director and CEO, Mr. Rajes Kumar Mikar, our chief financial officer. they will take 2:12 2 minutes, 12 seconds you through the details of our operational and financial performance for the quarter. Thank you. With that I 2:18 2 minutes, 18 seconds I now hand over to Mr. Raj Mal our CFO to take you through the key financial highlights for quarter 2 2026. 2:26 2 minutes, 26 seconds Thank you Miranda. Thank you. Good morning everyone. Welcome to our earnings conference call to discuss the performance of second quarter for the financial year 2026. 2:36 2 minutes, 36 seconds Let's let me first thank you our host for today's earnings call Dan Capital Advisor. Now let me give you some of the 2:44 2 minutes, 44 seconds key financial highlights for the quarter and for the first half year ended for the financial year 2026. 2:52 2 minutes, 52 seconds For the second quarter under review, our revenue from operation is stood at 2:59 2 minutes, 59 seconds 213 cr rupees which declined by 43% on quarteronquarter basis. Thea was 3:08 3 minutes, 8 seconds 0.5 cr rupees which declined by around 95% on quarteron quarter margin reported at 0.23%. 3:17 3 minutes, 17 seconds The net loss for the quarter was around rupees 22 crores. 3:22 3 minutes, 22 seconds For the half year ended, revenue from operations is stood at rupees 876 cr which declined by 24% on year on year. 3:34 3 minutes, 34 seconds The IITA was rupes 56 cr which declined by on year on year with margin reported at 6.44%. 3:44 3 minutes, 44 seconds The net profit was around 0.6 crores. 3:50 3 minutes, 50 seconds Now I would request our managing director and CEO Mr. Raji Singana to brief you on the operational highlight. 3:57 3 minutes, 57 seconds Over to you sir. Thank you Rajes G and once again good morning everyone. 4:02 4 minutes, 2 seconds uh the second quarter of F426 uh continued the muted journey for RF uh with an overhang from Q1 primarily due 4:11 4 minutes, 11 seconds to unseasonal rain and specially the time gap between the announcement and implementation of GST rate reduction on air conditioners from 28% to 18%. 4:21 4 minutes, 21 seconds So as there was a overhang of inventory from Q1, this definitely impacted the sales u and production in Q2 as well. 4:28 4 minutes, 28 seconds But thankfully uh the uh second half of Q2 especially the end of September saw some cheer in the market with AC 4:36 4 minutes, 36 seconds inventors getting liquidated and general inventory being offloaded. However, post implementation of GST, we witnessed this 4:44 4 minutes, 44 seconds uh rebound for a shorter duration especially during Navakri and Diwali where in the surge in customer uh demand 4:51 4 minutes, 51 seconds pushed AC sales and also pushed liquidation of inventory from the brand warehouses. 4:57 4 minutes, 57 seconds Over the past few weeks, inventory levels have definitely come down and general movement has improved meaningfully. 5:04 5 minutes, 4 seconds We expect this movement to further continue through the current quarter thereby driving the demand and enhanced uh with 5:13 5 minutes, 13 seconds enhanced affordability improving customer sentiment and healthy underlying demand. 5:18 5 minutes, 18 seconds For a segmental perspective, our RSC segment witnessed a decline of 76% quarteron quarter basis for the reasons I stated just however other segments 5:27 5 minutes, 27 seconds demonstrated strong momentum. Our focus in diversifying uh our overall revenue the three pillars of small domestic 5:35 5 minutes, 35 seconds appliances saw a growth of 45% quarter on quarter led by healthy order increase across both existing and new products 5:43 5 minutes, 43 seconds particularly with increasing demand of air fryer. Our component segment the second pillar also saw a robust growth of around 73% quarteron quarter 5:51 5 minutes, 51 seconds supported by a solid order pipeline of different components for non products. 5:57 5 minutes, 57 seconds Our LDA segment also reported a significant 466% growth quarter on quarter given by our continued focus on expanding the customer base. 6:05 6 minutes, 5 seconds Our product business contributed 79% of the total operating revenue during quarter 2 reaffirming our customer confidence in core offerings and strong market adoptions. 6:16 6 minutes, 16 seconds In line with our strategy to scale and diversify, we also took a significant step in broadening our component segment. This diversification will 6:23 6 minutes, 23 seconds deliver move to reduce concentration and position us in adjacent high growth industries. We see this a long-term 6:31 6 minutes, 31 seconds growth lever that strengthens our portfolio and opens new opportunities across sectors. We remain committed to long-term value creation through strategic capital investments aimed at 6:40 6 minutes, 40 seconds expanding capacity and supporting our diversified growth roadap. By end of quarter 226, we made steady progress across multiple key locations. We 6:48 6 minutes, 48 seconds incurred approximately 129 crores of keep in Q2 FY26 primarily directed toward capacity expansion and equipment 6:56 6 minutes, 56 seconds installation. Our basic infrastructure and building is now ready and we are putting up the plant. 7:03 7 minutes, 3 seconds These investments along with the upcoming FIC facility for highense growing customer engagement post implementation of GST cut from 28 to 7:10 7 minutes, 10 seconds 18%. We have witnessed a strong rebound in demand. 7:16 7 minutes, 16 seconds The festive season particularly during Dubai saw a surge in customer durable sales especially air conditions and 7:23 7 minutes, 23 seconds expecting the momentum to continue. We firmly believe that H2 would see a 7:31 7 minutes, 31 seconds rebound in the growth of AC industry overall. The continued expansion of product portfolio positions us well for 7:38 7 minutes, 38 seconds the future. With a strong foundation in place and focused execution, we remain confident in achieving our 4 year targets and sustaining healthy revenue 7:46 7 minutes, 46 seconds growth going forward. With this, we now open floor for Q&A. 7:54 7 minutes, 54 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone 8:03 8 minutes, 3 seconds telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are 8:10 8 minutes, 10 seconds requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. 8:42 8 minutes, 42 seconds H35 H3 H sorry H3. 8:56 8 minutes, 56 seconds The first question is from the line of Anodha Jooshi from ICICI security. Please go ahead. Yeah. 9:04 9 minutes, 4 seconds Yes. Uh thanks for the opportunity. Uh sir uh uh question uh obviously uh Q2 9:11 9 minutes, 11 seconds was impacted but uh how do you see Q3 considering uh many companies have called out that October was also a soft 9:19 9 minutes, 19 seconds quarter because generally there is a mini summer or October heat but uh this time we have seen uh monsoon remaining 9:26 9 minutes, 26 seconds in u active in many parts of India. So uh probably weaker start to the quarter 9:33 9 minutes, 33 seconds Q3 and uh uh secondly uh the inventory also needs to change by end of 31st uh December considering the uh change in B 9:42 9 minutes, 42 seconds norms from J January. So uh how do you see Q3 uh likely to pan out? That is question number one. Question number two 9:52 9 minutes, 52 seconds uh if you can indicate the uh guidance for this year if I 26 I guess earlier call you had elevate to around 30% 9:59 9 minutes, 59 seconds revenue growth this year so how should we uh build on to that uh now in the model and uh last question uh in terms 10:08 10 minutes, 8 seconds of uh any update that you uh can share on uh high sense as well yeah that's it from thank you 10:16 10 minutes, 16 seconds thanks um I think very relevant question under the current circumstance businesses obviously like I started sharing um the GST rate cut and the 10:25 10 minutes, 25 seconds cheer which it brought to the market was kind of very shortlived lasting probably only for two weeks or so and beyond it 10:33 10 minutes, 33 seconds uh obviously October we didn't see much uplift in the market sentiments so uh the GST rate cut could only promote 10:40 10 minutes, 40 seconds certain it definitely helped liquidate inventory in the uh channel to a certain extent but not as high as expected So uh 10:50 10 minutes, 50 seconds there has been definitely reduction in the overall inventory levels in the trade and we saw some u movement in uh 10:58 10 minutes, 58 seconds inventory from the branch again to the secondary market but it was shortlived and yes u definitely the beginning of 11:05 11 minutes, 5 seconds quarter 3 seems to be kind of muted. So my current sense u guides me that 11:12 11 minutes, 12 seconds overall uh FY 2526 for the industry at best could be a fleetish kind of a year 11:18 11 minutes, 18 seconds for the AC industry and hence our efforts into diversifying I think will play a very critical and important role 11:25 11 minutes, 25 seconds for us to uh drive growth for the current financial year. So as we can see the uptick in our SDA, LDA and other 11:34 11 minutes, 34 seconds categories, we firmly believe that this will continue to grow and AC at best could be fractured for the industry. Uh 11:41 11 minutes, 41 seconds and we could see similar kind of status even for EPC. So uh our revenue guidance if we talk about for the current 11:47 11 minutes, 47 seconds financial year u will continue to grow u with our diversification efforts and uh 11:55 11 minutes, 55 seconds for the projections about the AC growth we we keep our fingers crossed still uh looking at the kind of RFQS what are 12:03 12 minutes, 3 seconds coming into the industry. Overall calendar year 26 definitely seems to very promising with all this but yes definitely the be upgradation and all 12:11 12 minutes, 11 seconds this are definitely jeopardizing the current uh H2 growth as well. Uh in terms of uh the update on highense, the 12:20 12 minutes, 20 seconds new facility which we are putting up dedicated for he is now completely ready and the trial production and all the licenses and approvals have been achieve 12:28 12 minutes, 28 seconds received and we are planning a mass production rule out towards the end of December first week of January when we 12:36 12 minutes, 36 seconds plan to start the mass production for the high emissions. 12:41 12 minutes, 41 seconds Okay. Sure. Sure. Uh understood. uh so and uh uh I guess the price hikes which may which we may need to take uh will be 12:50 12 minutes, 50 seconds in the range of 7 to 8% uh for RS6 from January to comply with uh new norms. Uh that's right. 12:58 12 minutes, 58 seconds So again on the price hike side there are going to be two impacts uh in the coming season. One definitely is that compared to last uh season of which 13:07 13 minutes, 7 seconds which abruptly ended in March April the dollar rate has gone up the commodity especially copper and all has almost 13:14 13 minutes, 14 seconds increased by 15 to 20%. So that is one point which will definitely lead to price increase and on top of it the D rating predation will also have its own 13:23 13 minutes, 23 seconds impact. So yes anywhere between 5 to 7% is definitely the increase on the cards which will set off whatever benefit was passed on in terms of GST reduction. 13:34 13 minutes, 34 seconds Okay. Got it. Got it. So, and uh uh last question. Uh I think the PLI benefit uh that the industry is getting it's still 13:41 13 minutes, 41 seconds uh end of acquire 27. Uh uh that's right. No. So post that. 13:48 13 minutes, 48 seconds Huh? Sorry. Right. So this year is the fourth year for EP to accure PLA benefit and then F 27 627 will be the last year 13:56 13 minutes, 56 seconds for which the amount will be received in F28. So the five year window for the PLA will be uh ended ending in F267. 14:04 14 minutes, 4 seconds Okay. So so most likely the industry will have to take one more round of price hike uh again beginning in uh beginning in uh FI28 to to manage the market. Yes. 14:17 14 minutes, 17 seconds Okay. Okay. Sure sir. So uh this is uh uh very helpful. Many many thanks. Thank you. Thank you. 14:24 14 minutes, 24 seconds Thank you. 14:27 14 minutes, 27 seconds Thank you sir. The next question is from the line of Tana from Dam Capital Advisor. Please go ahead. 14:36 14 minutes, 36 seconds Um, hi sir, good morning. Uh, thanks for the opportunity sir. My uh first question is uh given you mentioned that 14:44 14 minutes, 44 seconds obviously the inventory did sort of liquidate to an extent at the channel level. Uh what would be the current uh inventory levels let's say between uh 14:52 14 minutes, 52 seconds channels and brands uh currently? 14:58 14 minutes, 58 seconds So again these are just estimated figures. Uh we we uh we we believe that 15:05 15 minutes, 5 seconds the channel inventory at the end of Q1 was roughly around uh 5 million with almost 3.5 million in the channel and 15:14 15 minutes, 14 seconds close to 1 and a half to 2 million with the brands. So at the end of Q2 we believe that this inventory has come 15:21 15 minutes, 21 seconds down to the level of almost 2 and a half 3 million. So it has almost reduced by 50% or so. 15:28 15 minutes, 28 seconds So, so, so those are the estimated numbers what we have kind of put down in our discussion with most of the brands. 15:35 15 minutes, 35 seconds So, the channel inventory has definitely reduced almost 50% in the last quarter and so that would broadly be uh let's 15:42 15 minutes, 42 seconds say around u two odd million with the channel and remaining 1 million with the brand. Would that be a fair split? 15:49 15 minutes, 49 seconds Yeah, as a rough estimate that's what numbers could look like. maybe 1.7 million with the chair million another 1 million with the brands put together. 15:57 15 minutes, 57 seconds Got it. So my uh second question is um given that the be rating is on cards let's say Jan onwards are we seeing any 16:06 16 minutes, 6 seconds sort of new RFQS turning into orders this quarter onwards or is that yet uh something which is not coming given that 16:13 16 minutes, 13 seconds we have to yeah liquidate the old inventory yet? 16:18 16 minutes, 18 seconds So here something interesting is there uh especially since the B rating is getting implemented from 1st of January 16:24 16 minutes, 24 seconds and it is not necessary for uh the so the channel can still carry the 16:32 16 minutes, 32 seconds inventory from the previous of the previous star rated products. So we see a unique mix since the price increase on the fivestar products is going to be 16:40 16 minutes, 40 seconds much more as compared to three star product. uh a lot of brands are continuing production especially of the fivestar products with the uh current DE 16:48 16 minutes, 48 seconds rating and which they probably want to uh market or sell in the upgraded situation. So one in the current quarter we will see a lot of five star getting 16:56 16 minutes, 56 seconds produced and secondly yes most brands are also starting production of the new star rated products from mid of December onwards. 17:05 17 minutes, 5 seconds Okay sir. So uh my uh next question is let's say in terms of SDA right we've seen very strong growth and obviously 17:13 17 minutes, 13 seconds it's got to do with the fact that one bit is the air fryer is picking up pretty well but what are the other key products which is doing well for us and 17:21 17 minutes, 21 seconds if it could give any color in terms of you know the breakup between the products uh and how uh was this was this 17:28 17 minutes, 28 seconds demand a lot led by festive sales and if yes uh has it uh yet is it get sustaining at these levels going forward as well. 17:40 17 minutes, 40 seconds So for the SDA category yes air definitely being a new category we saw a significant movement and with uh EPAC 17:48 17 minutes, 48 seconds associating with most of the larger clients this definitely has been a remarkable um ramp up of operations for the air fryers but together with air 17:57 17 minutes, 57 seconds fries there other products which we have created the lineup like vacuum cleaners, coffee makers, infrared cooktops, nutri 18:04 18 minutes, 4 seconds blenders. So almost all the products have either started production towards the end of Q2 or current month we are seeing the productions being ramped up 18:12 18 minutes, 12 seconds and as committed earlier that we intend to add almost close to 15 new customers. 18:16 18 minutes, 16 seconds Five were on boarded in the last quarter and another uh four five are getting we have already received the approvals and are in process of getting uh on boarded. 18:26 18 minutes, 26 seconds So with the continued focus of SDA we see that this growth momentum to continue further and as we are adding new product lines uh the overall SD will 18:35 18 minutes, 35 seconds continue to show a strong growth momentum. 18:39 18 minutes, 39 seconds Got it sir. And so just uh if I could ask another question in terms of uh working capital right it's uh seen a 18:45 18 minutes, 45 seconds significant increase in H1. So you know what is the uh expected working capital position and let's say the debt position 18:54 18 minutes, 54 seconds which we expect at the end of FI26 if you could give some flavor on that and just one more last question in terms of 19:01 19 minutes, 1 second uh the component PLI given that we started seeing some sort of approvals coming within the government are we planning on doing anything for camera 19:09 19 minutes, 9 seconds modules and if yes would it be for mobiles or auto for the working capital 19:17 19 minutes, 17 seconds Um since we had we were carrying huge amount of inventory overhang from the Q1 definitely those inventories converted 19:24 19 minutes, 24 seconds into paid inventory for us as we uh marched through quarter two and since there was no movement in the finished 19:32 19 minutes, 32 seconds goods definitely uh the working capital increased and hence our inventory levels days have also increased. 19:40 19 minutes, 40 seconds So as you can see in the uh presentation shared one is the increase in the inventory days and second is the reduction in the payable days which is 19:48 19 minutes, 48 seconds which means there is there was no new purchase all the old purchases are already paid off. So that is something which has impacted the overall working capital cycle. Now within the current 19:56 19 minutes, 56 seconds quarter and going forward as this industry starts liquidating you will see definitely improvement in the overall working capital cycle or date. uh but 20:06 20 minutes, 6 seconds again to achieve something what we did last uh financial year would be difficult since the um inventory has already impacted a lot during the 20:14 20 minutes, 14 seconds current uh anything you want to add to it and this 20:22 20 minutes, 22 seconds as you rightly quoted you have seen the results also then this working capital and this has also mentioned this working capital there were there were two type 20:31 20 minutes, 31 seconds of jumps in the loan this time one This is the working capital requirement that is because of the inventory lying up in 20:38 20 minutes, 38 seconds the books and uh we have paid uh our suppliers on time. This is why there is some jump in the working capital requirement and uh some part of the turn 20:47 20 minutes, 47 seconds loan which has increased because uh you see that we have made some amount uh in the utilize some amount in the capex in 20:56 20 minutes, 56 seconds the first quarter and second quarter around 160 cr out of which around 70 cr all number we have utilized out of uh 21:04 21 minutes, 4 seconds our IPO proceeds and some amount uh IPO proceeds has been utilized mainly for building and some for capex. like plant 21:13 21 minutes, 13 seconds machinery we have utilized for subsidiary against the term loans the highest facility the term loan is being used for our highest facility which is 21:21 21 minutes, 21 seconds now ready and now we are putting up the pantry so that's why for this product consolidated practice we are seeing some jump in there in terms of second 21:30 21 minutes, 30 seconds question regarding component so in ter which is called the CMS scheme the electronic component manufacturing scheme uh so at EPC we had formed two 21:38 21 minutes, 38 seconds new entities uh bombing a products private limited and eek components private limited of which the components 21:46 21 minutes, 46 seconds um we would manufacture the electronic components. Uh it the Bumijing audio products intends to make components of 21:54 21 minutes, 54 seconds audio components like TV speakers and loud microphones and all this for which uh the facility is currently under 22:00 22 minutes setup. And the second uh electric components private limited again is a new facility with green field facility 22:08 22 minutes, 8 seconds targeting certain other components uh allowed under the scheme for which the construction is ongoing and uh the set 22:15 22 minutes, 15 seconds of components to be produced there uh we we would share in the uh upcoming quarters as we enter into certain strategic agreements on this. 22:24 22 minutes, 24 seconds Got it. So just wanted to understand the net debt position or the debt position at the end of this year would be helpful. Given that you know the working 22:32 22 minutes, 32 seconds capital and the term loan has sort of increased just wanted if you get some flavor on that. Thank you. 22:41 22 minutes, 41 seconds This you see the this uh our fixed uh our uh total borrowings in the books is around 680 22:49 22 minutes, 49 seconds cr or so and uh we are having around uh 126 cr around money in our books. The 22:56 22 minutes, 56 seconds net is would be around uh around 500 cr or so. Thank you sir. 23:08 23 minutes, 8 seconds Thank you. 23:10 23 minutes, 10 seconds The next question is from the line of Rahul from PNB Metife Insurance. Please go ahead. 23:19 23 minutes, 19 seconds Hi sir. Uh thank you for the opportunity. Am I audible or not? Yes sir. 23:26 23 minutes, 26 seconds Uh so sir uh the weather has been you know rapid uh this year. 23:34 23 minutes, 34 seconds So can you come closer to the mic? 23:36 23 minutes, 36 seconds Sure. Uh so sir weather has been uh erratic this year uh and uh there is 23:44 23 minutes, 44 seconds also a case of lanina this year. So to what extent uh can the can the demand be 23:52 23 minutes, 52 seconds impacted and uh how are you planning the inventory given the lina and rating change here? 24:03 24 minutes, 3 seconds So the unseasonal rains and uh the eretic behavior of the weather definitely has impacted the overall AC 24:12 24 minutes, 12 seconds uh demand in the country. Based on the industry estimates uh uh we see that overall industry has degrown to the 24:20 24 minutes, 20 seconds extent of almost 35% plus till end of quarter 2 and similar kind of degrowth is also seen in the number shared by 24:28 24 minutes, 28 seconds eerable. uh while we see definitely some rebound in demand in the upcoming two quarters overall it is expected that at 24:37 24 minutes, 37 seconds best the industry could uh end up being flattered compared to the last year or possibly there could be some degrowth. 24:45 24 minutes, 45 seconds uh so this entire 35% kind of a degrowth for the current financial year seems quite difficult to achieve towards the 24:52 24 minutes, 52 seconds end of the fiscal year after 2526 but keeping fingers crossed we expect overall level the industry to end 24:59 24 minutes, 59 seconds somewhere being flish at max okay sir uh sir uh my second question is 25:07 25 minutes, 7 seconds uh sir to what extent have you backward integrated in terms of So 25:16 25 minutes, 16 seconds in terms of backward integration at EP durable uh we make uh components by value to the extent of almost 65 70% 25:24 25 minutes, 24 seconds which includes components like copper parts printed circuit board controllers PCBs cross flow fans BLC motors under 25:32 25 minutes, 32 seconds our subsidiary power all plastic parts sheet metal parts everything. 25:37 25 minutes, 37 seconds uh technically if I talk in the terms of large component except compression we make almost all the key components in house 25:46 25 minutes, 46 seconds so that's almost 65 70% by value of components are being produced under the single roof at each of the facility 25:55 25 minutes, 55 seconds sure sir thanks a lot thanks a lot for the opportunity and all the best 26:04 26 minutes, 4 seconds thank you the Next question is on the line of Ursia Kosla from Nirmal Bank institutional equities. Please go ahead. 26:15 26 minutes, 15 seconds Yeah. Hi. Uh thanks for taking my question. Uh so my question is on the LDA and HD segment. Uh any new client additions that we've done in quarter 2 26:24 26 minutes, 24 seconds and for the LDA what products are seeing uh I mean what products have seen that growth? 26:33 26 minutes, 33 seconds Thanks. for the LDA and HDA segment. Um we have added we've diversified our product portfolio. We have added newer 26:42 26 minutes, 42 seconds products uh in this like air air fryer and then we've added coffee makers and 26:50 26 minutes, 50 seconds going forward we are adding blender and other products. So in terms of new customer edition we have added several key new customers like groups va link 26:58 26 minutes, 58 seconds lock fle nan micro mix. So there's been addition of at least six seven new customers of which four or five are 27:06 27 minutes, 6 seconds really big and significant customers and then the opportunity to crossell to our current existing clients the existing whom we were earlier supplying only the 27:15 27 minutes, 15 seconds uh induction cooktops or the mixer grinders categories whatever we are adding are also getting sold. So this all is helping us ramp up our uh so the 27:24 27 minutes, 24 seconds categories as as we are adding up more categories we see our relationship with the existing customers to grow further. 27:31 27 minutes, 31 seconds So, so that will help us increase our wallet share with these customers. So, this definitely remains the key growth 27:38 27 minutes, 38 seconds driver for us. Uh, similarly for LDA we are making especially coolers. So, coolers also we see a definite growth 27:46 27 minutes, 46 seconds coming forward. uh our our air cooler acid both Symphfony, Volultas and Bajars continue uh although being a cooling 27:55 27 minutes, 55 seconds product uh there was an impact on cooler sales as well but then uh our production is ramping up and we are adding a newer line as well. So there again we see the 28:04 28 minutes, 4 seconds continued momentum and we are also in talks with certain other newer clients to increase our uh customer mix for the 28:12 28 minutes, 12 seconds LDA categories. So in LD we also have the washing machines the top washing machines what we started uh in the 28:19 28 minutes, 19 seconds beginning of this financial year. Uh so therein now the growth has been kind kind of or the 28:27 28 minutes, 27 seconds production has not been significantly ramped up in the last two quarters since it took much more of approval time than 28:33 28 minutes, 33 seconds expected or anticipated by us. By now uh all the approvals are in place and certain key new relationships have already been established 28:42 28 minutes, 42 seconds for further the field trials with almost all the key brands are completed all reliability is done and we are seeing a ramp up in production as we currently talk. 28:53 28 minutes, 53 seconds Thanks sir. That's helpful. And uh secondly uh on the new be non changes so have the brand started placing orders 29:01 29 minutes, 1 second for the new product and have you started the production on that? 29:06 29 minutes, 6 seconds As far as new be products for recondition is concerned? Yes. The RFUS have already been received and commercially closes done with most of 29:12 29 minutes, 12 seconds the brand customers. So currently the products are in the testing and validation. So there's still a months to go before the production start. So for 29:20 29 minutes, 20 seconds most of the brands we see production starting towards the mid of December or end or the last week of December is when the production will actually start for the newbed products. 29:32 29 minutes, 32 seconds Uh got it sir and lastly sir on on your guidance for 26 revenue and on the market. 29:41 29 minutes, 41 seconds I think in the previous question also I was very candid to share the guidance. 29:45 29 minutes, 45 seconds So our guidance on growth for the all the other three categories the SBA, LD and component definitely we can see an upside to whatever guidance we had given 29:54 29 minutes, 54 seconds earlier. However uh for AC yes we we um we are little pessimistic about the 30:02 30 minutes, 2 seconds growth of EC and we believe that the industry at best could be reflected. So and any growth over the last year numbers for AC will definitely be a challenge for us as well as the 30:10 30 minutes, 10 seconds industry. But at the same time our diversification efforts for all other categories like SHA, LHA component etc will definitely help us secure definite growth over the last year's revenue. 30:22 30 minutes, 22 seconds Got it sir. So basically for RC we'll be at par with the industry. 30:28 30 minutes, 28 seconds That is what the best you can expect under the current circumstances. Got it. That's my sir. Thank you. 30:38 30 minutes, 38 seconds Thank you ladies and gentlemen. To ensure the management can address questions from all the participants, please limit your questions to two per 30:47 30 minutes, 47 seconds person. If you have a followup, kindly rejoin the queue. The next question is from the line of Mr. Achal from Noama AI. Please go ahead. 31:08 31 minutes, 8 seconds Kindly unmute your mic. 31:16 31 minutes, 16 seconds Can you take another call? 31:21 31 minutes, 21 seconds The next question is from the line of Deepal Ianal from Manura Capital. Please go ahead. 31:29 31 minutes, 29 seconds Hello sir, good morning. hard set of numbers this quarter. Uh actually you probably mentioned about coffee maker again and again. I think twice has 31:37 31 minutes, 37 seconds mentioned but in your PP is not mentioned that it has been launched or started production. Uh new products for 31:45 31 minutes, 45 seconds new blender and vacuum cleaner would you able to uh define what are their revenue sales uh production capacities? How much can we make? How much can we sell? 32:01 32 minutes, 1 second Hello. 32:02 32 minutes, 2 seconds Yeah. Yeah. I'm just looking at the numbers to share with you. U so in the in toward the end of quarter two and the 32:10 32 minutes, 10 seconds current month I I believe we started the two projects what we're talking about both the coffee makers. Coffee makers were done in quarter two. It was quarter three quarter or vacuum cleaner. So we have started nutri blender coffee. Okay. 32:21 32 minutes, 21 seconds So nutri I'm sorry coffee nutri blender and vacuum cleaner is started in quarter two 32:29 32 minutes, 29 seconds and coffee is something which is started in first week of QC sorry wanted to say that we have already established the line still it is the testing phase so 32:37 32 minutes, 37 seconds actual sales has not started but everything uh PKD everything has been done so for me two copy got started 32:46 32 minutes, 46 seconds right just right now today or tomorrow it will be done so once the final has been happen then it will done So in quarter two we have already started the 32:54 32 minutes, 54 seconds two two new products and this will be in quarter three. 32:58 32 minutes, 58 seconds So we have the launch blender and wet in quarter two and definitely infert cooktop and coffee maker the both will 33:06 33 minutes, 6 seconds be started in this quarter. The line and everything has already been uh established. Uh the test product is already done. Uh but the final product is on the process. 33:17 33 minutes, 17 seconds All right sir. uh so let's assume that uh we had a bad year this year bad monsoon and everything what if we see 33:25 33 minutes, 25 seconds another bad year next year so how do we handle such circumstances because as we can see that we ended up in cash losses 33:33 33 minutes, 33 seconds in this quarter and next quarter is also not looking good uh the RSQs are not also not looking very promising right 33:41 33 minutes, 41 seconds now so what if we have another bad year how are we uh equipped to handle such circumstances 33:49 33 minutes, 49 seconds Okay. So these in terms of the RSQs and outlook for FY or rather the upcoming season the calendar year 26 is 33:58 33 minutes, 58 seconds definitely very promising and uh uh when we are talking so there are two aspects when we are talking about the current financial year because the first half 34:06 34 minutes, 6 seconds has been extremely muted with the industry degrowing at 35%. So re recovering that 35% in October, 34:13 34 minutes, 13 seconds November, December or even the H2 of the year seems kind almost unrealistic. 34:19 34 minutes, 19 seconds Hence we are saying that for the financial year after 2026 yes the industry would at best be flattish because recovering the 35% loss sales 34:28 34 minutes, 28 seconds will not be possible. At the same time the uh the future outlook for the industry for the calendar year 26 27 is 34:35 34 minutes, 35 seconds extremely promising. So the uh the impact of GST reduction from 28% to 18% kind of will be available for the entire 34:43 34 minutes, 43 seconds year of current year 26 and onwards. So that is something which will definitely promote the overall demand for the upcoming season. So the upcoming season 34:52 34 minutes, 52 seconds RFQS are extremely good and most of the brands are planning very robust quantities and we we are very confident 35:00 35 minutes that overall the season of FY26 uh the calendar 26 is going to be extremely good and as we are ramping up production 35:08 35 minutes, 8 seconds and discussions with our u the order book for the calendar 26 is extremely healthy. So there there is no um uh 35:17 35 minutes, 17 seconds there no reason for us to uh be pessimistic for the calendar year 26. 35:23 35 minutes, 23 seconds Everything is lined up very well. The order book is very strong. We have closed u the orders with most of the leading customers for the calendar year 35:32 35 minutes, 32 seconds 26. So the overall projection for 26 definitely is very good. when we say that Fword 26 seems to be kind of muted 35:39 35 minutes, 39 seconds is because of whatever has been lost in last 6 months seems kind of little difficult to recoup or regain. So from 35:46 35 minutes, 46 seconds that context yes FY26 could be at best muted but overall the coming season is extremely promising and all the brands 35:54 35 minutes, 54 seconds are planning a growth over the current financial year. 35:58 35 minutes, 58 seconds So we are actually looking to double the capacity by FY27 which you were in initially planning. Is that still a course of action? 36:06 36 minutes, 6 seconds Yeah, that definitely the course of action and especially with our uh new facility for hyphens coming up, a lot of 36:14 36 minutes, 14 seconds push is there on export sales to the Middle East and African country by hyen. 36:18 36 minutes, 18 seconds So all this we see definitely will help us uh leverage our uh capacities better 36:24 36 minutes, 24 seconds in current year 26 and 27. there is u we are not cutting down any estimates for 36:31 36 minutes, 31 seconds the overall growth in the calendar year 27 that all is on track the only thing is the current loss sales for the industry seem uh and would be 36:39 36 minutes, 39 seconds unrealistic to recover in the next 6 months of the uh of the second half of S26. So I think we have been very candid 36:47 36 minutes, 47 seconds to share that it would be extremely impossible for the industry to uh recover the loss sales of H1 and H2. 36:55 36 minutes, 55 seconds All right, that's it from Thank you. 37:01 37 minutes, 1 second Thank you. The next question is from the line of Mr. Achal from Noama AI. Please go ahead. 37:09 37 minutes, 9 seconds Yeah. Uh good morning sir. Thank you for the opportunity. Just a clarification. 37:16 37 minutes, 16 seconds um you know on one hand you said that uh you know the industry has seen a 35% decline y on the other hand you were 37:24 37 minutes, 24 seconds saying that um you know the uh um at best it can be flattish but I'm I'm just 37:32 37 minutes, 32 seconds perplexed about the math if uh if the uh December quarter will not I mean typically the uh 4q and 1q are the 37:41 37 minutes, 41 seconds strongest quarters right so you think it can get compensated in Jan to March period especially when the retail demand actually kicks in only in Feb onwards. 37:53 37 minutes, 53 seconds So absolutely I I'm in line with your thought process and this is what we are uh currently discussing that the uh loss 38:02 38 minutes, 2 seconds sale of H1 close to 35% seems unrealistic to recover in just one quarter sales of Q4 of the current 38:10 38 minutes, 10 seconds financial year with south the predominantly demand in south is only there for the Jan March period whereas 38:16 38 minutes, 16 seconds north uh kicks in only after March so for north which contributes almost close to 40% of the overall industry sales uh 38:23 38 minutes, 23 seconds it is mainly March, April, May, June, July that's the season and which was muted for the uh current year which has 38:30 38 minutes, 30 seconds led to all this deg we agree with you that the current loss sales would be difficult to recover in 38:38 38 minutes, 38 seconds the current financial year. However, the overall demand outlook for calendar year 26 is very very promising. 38:46 38 minutes, 46 seconds Got it. And just a clarification on the festive uh season you know whatever whatever you have gathered uh what kind 38:54 38 minutes, 54 seconds of growth are we seeing a 15 20% growth or 70 80 100% growth for our AC 39:00 39 minutes so the festive season cheer was there uh mainly only for the two weeks the last week of September 22nd to 30th and then 39:08 39 minutes, 8 seconds probably continue for another five seven days so the beginning of October was the cheer continue that led to significant 39:16 39 minutes, 16 seconds uh sales and reduction in the trade inventory but not to the level as was expected uh initially. So the first few 39:24 39 minutes, 24 seconds days the sales was extremely uh remarkable and everybody became very cheerful that almost all the inventory would be liquidated. So that was only 39:32 39 minutes, 32 seconds that was only a two week chair and after that again the demand has been kind of sluggish uh in the second half of the October. 39:44 39 minutes, 44 seconds So effectively maybe a 15 20% kind of a growth on a year-on-year basis for the comparable period. 39:53 39 minutes, 53 seconds So based on channel based on channel check report received and then discussed with the trade partners we believe yes 40:02 40 minutes, 2 seconds month on month there was an increase of almost 20%. So that was only for month of September let's say which obviously 40:08 40 minutes, 8 seconds is a very uh on a very low base. So on that kind of the September October sales 40:15 40 minutes, 15 seconds there was a 20% jump but overall quarter growth was not there because six weeks of the quarter were 40:22 40 minutes, 22 seconds already lost between the announcement and the implementation from 15th August to 22nd September. So that six six weeks were totally muted both in terms of sales and production. 40:33 40 minutes, 33 seconds Correct. It means that is just a pent up demand. So on a cumulative basis the growth will not be very large uh at the 40:40 40 minutes, 40 seconds retail end. Uh so I was just too understand. 40:48 40 minutes, 48 seconds Yeah. 40:50 40 minutes, 50 seconds Uh so maybe please request you to return to the question cube for follow-up questions as there are several participants waiting for. Thank you so much. 40:58 40 minutes, 58 seconds Thank you. Thank you. 41:04 41 minutes, 4 seconds The next question is from the line of Shri Jen from Pria Financial Services. Please go ahead. 41:12 41 minutes, 12 seconds Hello. Am I audible? Yes sir. 41:16 41 minutes, 16 seconds Yes sir. This uh the same situation was being observed in financial 2020 uh financial year 2024. Uh so over there uh 41:25 41 minutes, 25 seconds the Q2 Q3 was sluggish. Q4 also was quite of uh we started getting orders fresh orders from Q15. 41:33 41 minutes, 33 seconds So we'll be will we see similar situation in this year as well. Do we see fresh orders coming out from Q4 end and Q125 starting soon? 41:42 41 minutes, 42 seconds Yes. Yes. Um uh the outlook for current year 26 so Jan to December of 26 definitely like I'm sharing again and 41:50 41 minutes, 50 seconds again is very positive and very bullish for almost the brands. So currently as we talked we are sharing that our order 41:57 41 minutes, 57 seconds book for the Jan to December period of uh 2026 is extremely strong. So the orders have already been closed in most 42:04 42 minutes, 4 seconds of the major brands and currently as we talk the product is either getting finally tested or the testing is already 42:12 42 minutes, 12 seconds closed. So the production uh start from mid of December that's when the actual production starts for the calendar year 42:19 42 minutes, 19 seconds 26. uh so the overall outlook for 26 is strong and we will see rebound in manufacturing happening in quarter four 42:27 42 minutes, 27 seconds of this initial year or Jan to March and then March to uh June period when we will see a lot of production activity happening and being ramped up significantly 42:36 42 minutes, 36 seconds perfect sir perfect sir and sir and what would be the effect of new energy norms on the older inventory and the realization per unit of AC 42:45 42 minutes, 45 seconds so the original inventory is allowed to be sold in the trade as long as it is available in the channel. Uh 42:53 42 minutes, 53 seconds so uh as we are sharing that the improved D rating the cost is going to increase. So that will give some 43:00 43 minutes leverage to the channel partners to liquidate the old rated products definitely. Uh but the only uh norm is that the old 43:09 43 minutes, 9 seconds rated product cannot be manufactured uh beyond 31st of December. So, so that's the norm and hence we will spark the new 43:16 43 minutes, 16 seconds production of new rated products come somewhere around mid of December. 43:21 43 minutes, 21 seconds So, do we need to modify any components or the older components uh are eligible? 43:26 43 minutes, 26 seconds So, at component level uh all the components will be used only the overall 43:34 43 minutes, 34 seconds uh at product level there are some design changes happening which help us improve the energy efficiency. But in terms of inventory whatever we have is 43:42 43 minutes, 42 seconds is usable both in the current rated product as well as a new rated product. 43:45 43 minutes, 45 seconds So uh there would not be any inventory obsolence because of the uh the reading application. 43:53 43 minutes, 53 seconds Great answer one last question. Uh could you please let us know that what is the strategy of brands? Are they opting for 44:00 44 minutes those manufacturing or outing? is provide some light on that. 44:07 44 minutes, 7 seconds Okay. Sh like we all know I I believe there is no absolute strategy around this but of the top 10 brands sold in 44:16 44 minutes, 16 seconds India nine of them have their own manufacturing facility and despite this and these top 10 brands include almost more than 90% of the overall lithium 44:24 44 minutes, 24 seconds market and despite this their dependence on OEM or outsourcing today currently stands at more than 35%. So this 44:33 44 minutes, 33 seconds evidently reflects that uh no brand uh wants to do 100% manufacturing inhouse. 44:39 44 minutes, 39 seconds They always want to balance somewhere between manufacturing in-house and outsourcing. And uh this gives us the 44:48 44 minutes, 48 seconds confidence that we are an indispens indispensable partner for most of our larger brand customers. We have grown with them over last 20 years and we 44:55 44 minutes, 55 seconds continue to grow and uh so it's like working together. is not optional and together we continue to grow. 45:03 45 minutes, 3 seconds Okay sir. Thank you so much. 45:09 45 minutes, 9 seconds Thank you. The next question is on the line of Balas Subramanyan from Arhand Capital. Please go ahead. 45:18 45 minutes, 18 seconds Uh good morning sir. Thank you so much for the opportunities sir. some custom issues were there especially for copper cubes uh uh and like what is our uh like 45:28 45 minutes, 28 seconds planning in uh maybe next two to three years time frame we are planning any backward integration for copper tubing 45:35 45 minutes, 35 seconds or uh we still uh looking for uh uh outsource locally or we will continue 45:42 45 minutes, 42 seconds import from uh some of the countries if you could uh which are uh uh or supply source is coming Yeah. 45:51 45 minutes, 51 seconds Okay. So, so Mr. Bala in terms of the uh SCN from the customs department for copper gives the SCN was received by the 46:00 46 minutes entire industry not only manufacturers but all traders all put together. So for which jointly at industry level we are 46:08 46 minutes, 8 seconds um we we have filed a case in all the uh states with the customs department. We have already filed the case and we're jointly fighting it. And as an industry 46:17 46 minutes, 17 seconds we remain very confident that we have a very strong case to put up against the uh imposition of retrospective duties on 46:26 46 minutes, 26 seconds uh imports from FD countries. So so that u uh case remains uh with the courts now 46:33 46 minutes, 33 seconds and this is the hearings till date uh as an industry we are very positive that there will be a revision on this. So 46:41 46 minutes, 41 seconds that's where we stand in terms of the SCN for the federal zon copper tubes. In terms of sourcing strategy already a couple of new suppliers have come up in 46:50 46 minutes, 50 seconds the country like RR cable, global copper, met tube, hindalo. So all of them have uh uh already established 46:58 46 minutes, 58 seconds capacities for manufacturing of copper tubes and hence there is no need for EPC to look at back into backward integration at manufacturing its own 47:05 47 minutes, 5 seconds copper tubings. uh we have strategic relations with both domestic as well as import suppliers from FDA countries and we continue to source it. 47:15 47 minutes, 15 seconds Okay sir. So I think uh for Heisen JV we have a ambitious target of 1 billion incremental revenue over next five years 47:23 47 minutes, 23 seconds and what are the uh specific uh uh milestones for this JV over next 12 to 18 months in terms of production volumes 47:31 47 minutes, 31 seconds client approvals or initial revenue and uh how much investment how much additional investments we are planning 47:38 47 minutes, 38 seconds for uh highs I think we have a uh capeex plan of around 450 to 500 cr including 47:45 47 minutes, 45 seconds multip with JVs and subsidiaries. If you could break down what kind of ROC and payback period are expected in those 47:53 47 minutes, 53 seconds investments if you want in terms of our highense uh dedicated setup for high sense to 48:01 48 minutes, 1 second manufacture the entire range of appliances. Uh so there are three phases to which in phase one uh which is setting up of AC production the plant is 48:10 48 minutes, 10 seconds now already commissioned and as we discussed the trial productions are ongoing there and we expect mass production to start towards the end of 48:17 48 minutes, 17 seconds December or first week of January when we see mass production starting for air conditions. This will be an OEM product which is the global portfolio of 48:26 48 minutes, 26 seconds highense and will be used to be marketed in the domestic India market as well as exposed to certain middle east and African countries. So for this the cape 48:34 48 minutes, 34 seconds aex is close to 100 crores from the capeex for setting up the AC production line which is now almost completed. Uh 48:42 48 minutes, 42 seconds on top of it going forward there is plan to start uh washing machine both top load, front load and semi-automatic 48:49 48 minutes, 49 seconds which uh the phase two is currently looking to be productionized towards the end of quarter 1 in F27. April May is 48:58 48 minutes, 58 seconds when we look at starting the washing machine production and certain other products are also in pipeline. So all these three four products put together 49:05 49 minutes, 5 seconds in five years the cumulative revenue is projected at growth of a billion in revenue which is 8,000 crores. 49:13 49 minutes, 13 seconds Okay tax of 4200 cr that is there on the investor and that 49:21 49 minutes, 21 seconds is part of the investor presentation we shared in the last quarter. um almost 200 crores was additional investment for 49:29 49 minutes, 29 seconds I I don't have it handy but it was part of our last okay so 49:37 49 minutes, 37 seconds Diwali expansion the planned investment was 125 crores uh seric city both the 49:43 49 minutes, 43 seconds plan investment was 225 crores and for highense facility the planned investment was 100 crores which I shared is now 49:51 49 minutes, 51 seconds almost uh Then in quarter 1 out of this uh for 450 crores we did 45 crores of 49:58 49 minutes, 58 seconds investment and quarter two like we shared we have done almost close to 129 30 crores of innocent is what's already done. So out of 450 in quarter 1 and 50:07 50 minutes, 7 seconds quarter two put together 175 crores is done. Okay. 50:16 50 minutes, 16 seconds Thank you. The next question is from the line of Abhisar Jen from Onag AI. Please go ahead. 50:25 50 minutes, 25 seconds Yes. Uh thank you. Uh hi Aj. Uh AJ just wanted to know this uh Shri city capex other than the highense that 225 cr 50:34 50 minutes, 34 seconds which uh we are undertaking and we have spent 64 cr in the first half. So two questions there. One is that which all 50:43 50 minutes, 43 seconds product segments uh you are expanding there and given the demand scenario and the increased competitive scenario. What 50:51 50 minutes, 51 seconds is giving us the confidence uh in terms of the demand going ahead uh to put up uh you know such a large capex outside 50:59 50 minutes, 59 seconds highense because vi is also getting around 125 critional capex. just wanted your thoughts of uh you know what is the 51:06 51 minutes, 6 seconds demand uh you know visibility on these capex and if some form orders are also there for these. 51:14 51 minutes, 14 seconds So we said in terms of the three city keepex the 220 cr of cex 100 k is into uh the building 51:22 51 minutes, 22 seconds which is to be used by uh the holy subsidiary of rice. So the building is being uh built up in the effect durable 51:31 51 minutes, 31 seconds land and has been raised out to uh the the JV. So that's where the 100 cr is being invested and new two new product 51:40 51 minutes, 40 seconds lines are being set up. So close to 50 odd crores is going into ramping up washing machine production. So we had originally invested in top load. Now 51:47 51 minutes, 47 seconds front load and semi-automatic are also getting uh the tools are getting manufactured. So that's the other upcoming product line for which few is 51:55 51 minutes, 55 seconds going to be invested. And for new components, controllers and others another 80 crores is going to be invested. So that makes almost 225 52:02 52 minutes, 2 seconds crores 100 plus 50 plus 80 that's 225 30 crores is going to be invested overall in solici city. Um and in for the BI 52:10 52 minutes, 10 seconds investment that's a green field facility what we're talking about a new green field facility is getting constructed in BI uh for which currently the building 52:18 52 minutes, 18 seconds is being um under construction and the product lineup like we shared earlier will be shared subsequently once the formal 52:26 52 minutes, 26 seconds non-binding agree the binding agreements are signed with our partners. So it is something to do with the ECMS scheme and once we have a binding agreement in place we will share it with industry. 52:36 52 minutes, 36 seconds Understood sir. Uh thank you for this clarity. So the second question is on the washing machine side. So I understand that the initial ramp up and 52:44 52 minutes, 44 seconds approval uh has taken some time. uh but sir what would be uh your assessment on the outlook say for FI27 even if we 52:53 52 minutes, 53 seconds assume that the H2 also goes in you know further ramping up slowly as we get more approvals but for FI27 what kind of 53:01 53 minutes, 1 second outlook can you provide on the on the washing machine side and also sir if you can give the LDA number uh what we did 53:08 53 minutes, 8 seconds for Q2 for hosting machine yes the delay has not been some we are almost delayed by three quarters in ramping up production. 53:18 53 minutes, 18 seconds So that has made us now extremely cautious in terms of our further design capability and and as we are getting approvals from the customer. So now we 53:26 53 minutes, 26 seconds are more realistic. Uh we understand that this is one product which takes more time uh as compared to AC in which we already have an established 53:34 53 minutes, 34 seconds capabilities. So now we are very confident that with our topload almost approved or or rather already approved by the leading brands going forward for 53:42 53 minutes, 42 seconds us it is replicating our expertise. So as we talked front load and semi-automatic is two other lines of products which we are now envisioning 53:51 53 minutes, 51 seconds and for which uh the design development is ongoing. So with the complete range being available in FY27 we we see that 54:00 54 minutes the autobook is going to be extremely healthy and at least three uh key customers or anchor customers are already onboarded as we discuss and the 54:09 54 minutes, 9 seconds quantities are extremely promising from the three anchor multinational customers. So we see that uh an extremely good growth coming in FY27 from our washing machine category. 54:22 54 minutes, 22 seconds Okay sir. And the LD revenue for Q2 the the last one for the LD category. 54:29 54 minutes, 29 seconds Yeah LD L the base was extremely small. So growth is like what 46% but it's from a 54:38 54 minutes, 38 seconds very small base because LD predominantly is cooler. So like even cooler was muted but uh since we started off in January 54:45 54 minutes, 45 seconds there is definite growth of like 450% on it but it's an extremely small base. Okay sir. Thank you so much. Thank you. 54:57 54 minutes, 57 seconds Thank you. The next question is from the line of Natasha Jen from Philip Capital. Please go ahead. 55:05 55 minutes, 5 seconds Good morning sir. Thank you for the opportunity. Uh my first question is more so from the trade perspective. Now uh you had mentioned that fivestar 55:13 55 minutes, 13 seconds production continues because cost savings probably would be maximum there and then uh maybe six also would fall in that category. Now three star is the 55:22 55 minutes, 22 seconds majority of the market at 75% salient and within that I believe the cost hike is just under 3%. Having said that newer 55:30 55 minutes, 30 seconds inventory when they come into the system the cost difference may not be so much to the consumer. So do you think there could be steep price discounting in the 55:38 55 minutes, 38 seconds third quarter to push the inventory to the trade by the brands? 55:44 55 minutes, 44 seconds So I think this uh as an uh ODM manufacturer uh the brand strategy in pushing the 55:54 55 minutes, 54 seconds sales in the market is something uh we generally don't want to comment on. uh uh but yes uh like you rightly said 56:03 56 minutes, 3 seconds fivestar and six speed are the two products on which they increase because of the B is the highest and we we are seeing a continued production happening on these two categories that is three 56:11 56 minutes, 11 seconds star the impact been minimal uh we are seeing that most of the uh production happening only when it is required so 56:19 56 minutes, 19 seconds yes that definitely is going to happen how the discounting happens in market I think that generally lies beyond our comment 56:27 56 minutes, 27 seconds understood and for one more question um given that uh we might see Lanina this year therefore an extended winter so uh 56:34 56 minutes, 34 seconds fourth quarter given that third quarter a lot of inventory will get pushed to the fourth quarter plus newer inventory will roll into the fourth quarter and 56:42 56 minutes, 42 seconds given an extended and a harsh winter would you still maintain commentary of a flattish growth for RSC this year 56:50 56 minutes, 50 seconds so like I said I see a best case of a flattish kind of growth for the industry so we keeping our fingers crossed we believe that could be at best the best 56:58 56 minutes, 58 seconds case for the industry to be flish overall in F26 for the reasons you just mentioned. 57:04 57 minutes, 4 seconds Understood, sir. Thank you so much. 57:12 57 minutes, 12 seconds Thank you. The next question is from the line of Gita from Monach Aif. Please go ahead. 57:21 57 minutes, 21 seconds Yeah. Hi there. Uh am I a Yeah. 57:26 57 minutes, 26 seconds So um I wish that most of my answer most of my questions are answered. I just had one more question with respect to eavo. 57:34 57 minutes, 34 seconds Uh could you throw some light on when you know e power will be able to ramp up its production and uh you know break 57:41 57 minutes, 41 seconds even and at what margins will it operate? 57:47 57 minutes, 47 seconds Uh so for Kavo the green field facility in Bardi for manufacturing almost with a setup capacity of 3 million is now ready 57:55 57 minutes, 55 seconds and we have already started production from the mid of Q2. So from uh beginning of September is uh we already started 58:03 58 minutes, 3 seconds production in IABO of BLC motors for regenerations and as we discussed the the facility is putting up uh the 58:11 58 minutes, 11 seconds production is ongoing and we continue to stock up material for the coming season. 58:14 58 minutes, 14 seconds Uh so the approval from all the key customers including captive consumption at EPEC is now already approved and uh 58:23 58 minutes, 23 seconds uh so the production is ongoing and we are very confident that for the next calendar year effort 58:30 58 minutes, 30 seconds the calendar year 26 we will see significant improvement in the overall capacity. So with 3 million capacities installed we see the capacities being utilized during the current coming year. 58:42 58 minutes, 42 seconds So, so that will be the future of operations and as it progresses we we firmly believe that there will be need to further uh expand capacities depending on the response we receive. 58:52 58 minutes, 52 seconds So, uh now as we discussed yes the production is ongoing and uh we already have approvals from certain key 59:00 59 minutes customers and the transition of EP is already approved. Okay. At what margins will approve? 59:10 59 minutes, 10 seconds In terms of margin, we have to be uh competitive in the market. So being the first year of operations, I think a lot of innovations will happen as we ramp up 59:19 59 minutes, 19 seconds productions, we reduce our uh we work further on innovating and reducing our bill of material. So it will be very 59:26 59 minutes, 26 seconds difficult to project the margin at this point of time but yes uh definitely with the first year of significant production 59:33 59 minutes, 33 seconds we will be in a better position to further improve in the coming quarters. 59:36 59 minutes, 36 seconds So it's an ongoing journey for the first year. We definitely want to be market competitive, gain a lot of market share 59:42 59 minutes, 42 seconds and prove our mental as as a quality manufacturer. So, so that's the objective for the first year and as it 59:52 59 minutes, 52 seconds is a component so component definitely have a healthy margin. So going forward sustainably there will be good margin in the component. 59:59 59 minutes, 59 seconds Okay. Hence just one last question. Uh what components do we supply to this energy meter sector? Uh are we are we seeing any major growth in band collection? 1:00:10 1 hour, 10 seconds Yeah. So uh in uh for the energy uh met sector we started off supplying the 1:00:17 1 hour, 17 seconds molded parts the cases and the casings to certain large manufacturers in Japur and all. So uh and we are seeing 1:00:25 1 hour, 25 seconds extremely encouraging or or rather very good order books with them. So as we can see the component growth has been phenomenal in the last quarter that 1:00:33 1 hour, 33 seconds despite being AC production being almost close to zero. So which means that most of the component sales has happened to non AC segment and in which energy sectors definitely the energy meter 1:00:42 1 hour, 42 seconds segment has definitely played a very significant role and it's more of a secured order book and we continue to grow with uh that set of customers. 1:00:52 1 hour, 52 seconds Okay. So non non sector as of now include only the energy meter segment right or have you entered some other space as well 1:01:00 1 hour, 1 minute there are other businesses as well in in the component business so uh as we can see the growth in the component is extremely well I'm seeing it's despite 1:01:09 1 hour, 1 minute, 9 seconds almost no sales for the uh AC component so this the component 1:01:15 1 hour, 1 minute, 15 seconds business basically is largely non AC energy capabilities one of them but they are visited as well. 1:01:25 1 hour, 1 minute, 25 seconds Understood. All right. Thank you. Thank you. Thank you. 1:01:30 1 hour, 1 minute, 30 seconds Thank you ladies and gentlemen. That was the last question. I now hand the conference over to Miss Bumika Naya. 1:01:38 1 hour, 1 minute, 38 seconds Over to you ma'am. 1:01:40 1 hour, 1 minute, 40 seconds Yeah I um I just want to thank all the participants for being on the call and particularly the management for giving us an opportunity to host the call. Um 1:01:49 1 hour, 1 minute, 49 seconds thank you very much sir and wish you all the very best. Um any closing comments from your side. 1:01:55 1 hour, 1 minute, 55 seconds Yeah so thank you Omega first of all and thanks D capital for hosting the earnings call today. Thank you all the participants. I hope we have been able to answer your questions satisfactory. 1:02:04 1 hour, 2 minutes, 4 seconds In case there are further questions please reach out to us. Our team will definitely be available to answer them. 1:02:12 1 hour, 2 minutes, 12 seconds Thank you once again. 1:02:17 1 hour, 2 minutes, 17 seconds On behalf of Dam Capital Advisers Limited, that concludes this conference. 1:02:21 1 hour, 2 minutes, 21 seconds Thank you for joining us and you may now disconnect your lines.