EPACK Durable Limited — Q3 FY26

Epack Durable Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=HBrOK7Vr0Kk Published: 3 months ago

0:03 3 seconds Ladies and gentlemen, good day and welcome to IPC Durable Limited 3Q FY26 earnings call hosted by DAM Capital 0:11 11 seconds Advisor Limited. As a reminder, all participant clients will be in the listenon mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:22 22 seconds To read assistance during the conference call, please signal an operator by pressing star then zero on a touchstone 0:29 29 seconds phone. Please note that this conference is being recorded. Anna conference tanesha from dam capital advisers limited. Thank you and over to you sir. 0:42 42 seconds Thanks. Good morning everyone and a very warm welcome to the Q3 FY26 earnings call of Impact Durable Limited. We have 0:51 51 seconds the management today being represented by Mr. Bajang Bhotra chairman and wholetime director Mr. Ajay Singhana 0:58 58 seconds managing director and CEO Mr. Narayan Loda executive director and group CFO and Mr. Rajesh Kumar Mittal CFO at this point uh I'll hand over the floor to Mr. 1:09 1 minute, 9 seconds Bra for his initial remarks post which we'll open up the floor for Q&A. Thank you and over to you sir. 1:17 1 minute, 17 seconds Good morning everyone. I am Bajarang Bhotra, chairman of EPC durable and I warmly welcome you all to our Q3 FI26 1:25 1 minute, 25 seconds earnings conference call. The board of directors have approved Q3 FI26 results 1:31 1 minute, 31 seconds on 20th January 26 and I trust you all had the opportunity to review them. As 1:38 1 minute, 38 seconds many of you know, EP durable is India's second largest ODM in the room air conditioner segment. While RAC continues 1:47 1 minute, 47 seconds to remain a strong and scalable core business for us, we are consistently diversifying into higher growth and structurally better margin categories. 1:57 1 minute, 57 seconds Our revenue mix is becoming more balanced and dependence on the top customers are steadily reducing. This 2:05 2 minutes, 5 seconds reflects both the broadening of our customer base across product categories and the increasing contribution from new 2:13 2 minutes, 13 seconds verticals over time. This will make our business model more resilient, improve margin 2:21 2 minutes, 21 seconds stability and reduce concentration risk while positioning EPAC for more sustainable and profitable long-term growth. 2:32 2 minutes, 32 seconds Joining me on today's call are Mr. AJ Singana, managing director and CEO, Mr. 2:39 2 minutes, 39 seconds Narin Loda, executive director and group CFO APE Group, Mr. Rajesh Kumar Mittal, Chief Financial Officer, Ape Dables. 2:49 2 minutes, 49 seconds They will take you through the details of our operational and financial performance for the quarter. Thank you. 2:55 2 minutes, 55 seconds With that now I hand over to Rajesh Mittali our CFO EPC durable to take you through the key financial highlights for Q3 FI26. Thank you. 3:07 3 minutes, 7 seconds Thank you sir. Good morning everyone. 3:10 3 minutes, 10 seconds Welcome to our earnings call for the third quarter of the financial year 2026. I would like to thank our host Dan 3:18 3 minutes, 18 seconds Capital for arranging today's earnings call. The key highlights for the quarter and the period under review are as follows. 3:28 3 minutes, 28 seconds For the third quarter under review, revenue from operations stood at rupees 427.8 3:35 3 minutes, 35 seconds cr which increased by 13.5% on an year-on-year basis. The IIDA for the quarter was rupees 31.7 3:45 3 minutes, 45 seconds crores increased by around 31.5% on year-on-year basis. The IIDA margin reported at 7.41% 3:53 3 minutes, 53 seconds as against 6.39 cr 39% on year-on-year basis. The net profit 4:00 4 minutes was rupees 2.6 crores which increased by 4% on year-on-year basis. However, net 4:08 4 minutes, 8 seconds profit margin contracted by five basis points to 0.61% due to high depreciation and finance 4:15 4 minutes, 15 seconds cost. Now I would request our managing director and CEO Mr. Raja Di Singhana to brief you on the operational highlights. 4:25 4 minutes, 25 seconds Thank you Rajes G and once again good morning everyone. The company reported a healthy performance during third quarter with performance broadly in line with 4:33 4 minutes, 33 seconds our internal targets. Despite a challenging external headwind, we delivered a resilient performance. We also continued to strengthen our core 4:41 4 minutes, 41 seconds business fundamentals during the quarter. We added two customers during the quarter for whom supplies have already commenced. With this, our total 4:50 4 minutes, 50 seconds customer base has increased to 67 over first nine months of the year. In line 4:57 4 minutes, 57 seconds with our growth objectives, our washing machine business is also ramping up wealth and is expected to become a meaningful contributor to both revenue 5:05 5 minutes, 5 seconds and margin over the coming years. With an improving product mix and better asset utilization, supported by strong 5:12 5 minutes, 12 seconds execution and continued focus on operational discipline, we remain firmly on track to deliver margin expansion and stronger profitability on a year-on-year basis. 5:22 5 minutes, 22 seconds From a segmental perspective, our AC business segment witnessed a marginal 1% year-on-year decline during the quarter. 5:30 5 minutes, 30 seconds However, there is a strong performance across our other business segments. 5:34 5 minutes, 34 seconds Hence, our overall revenue has grown, reflecting the success of our of our diversification strategy. 5:41 5 minutes, 41 seconds The small domestic appliances segment grew by 30% year-on-year basis, driven by healthy water inflows across both existing and newly launched product 5:50 5 minutes, 50 seconds categories. Demand for air fryers have been very encouraging and is gaining good traction with customers. 5:59 5 minutes, 59 seconds Our component segment delivered a standout performance recording a strong 61% year-on-year growth supported by 6:06 6 minutes, 6 seconds robust order pipeline of our PCBs, copper parts, and plastic molded components. The large domestic appliances segment reported an 6:13 6 minutes, 13 seconds impressive 74% year-on-year growth driven by our continued focus on expanding product and diversifying customer base. 6:21 6 minutes, 21 seconds Notably, our product business contributed 75% of total operating revenue during the quarter, reaffirming strong customer confidence in our core 6:30 6 minutes, 30 seconds offering and highlighting healthy market adoption across categories in line with our strategic scale and diversify. 6:38 6 minutes, 38 seconds We have also taken a significant step in expanding our component segment. This is a deliberate and strategic move to reduce concentration risk while 6:46 6 minutes, 46 seconds positioning the company in adjacent high growth industries. 6:51 6 minutes, 51 seconds We see this as an important long-term growth lever that strengthens our business portfolio, enhances resilience, and opens up new cross- sector 6:59 6 minutes, 59 seconds opportunities for sustainable value creation. We remain committed to long-term value creation through strategic capital investments aimed at 7:08 7 minutes, 8 seconds expanding capacity and supporting our diversified growth road map. By the end of Q3 FY26, we made steady progress 7:17 7 minutes, 17 seconds across multiple key locations. We have incurred in our 44 k of cex in Q3 FY26 primarily 7:24 7 minutes, 24 seconds directed towards capacity expansion and equipment installation for washing machine line component segment at our 7:31 7 minutes, 31 seconds new CCT plant. Additionally, investments made at our J facility with highense and our new green field plant in Bihari are 7:39 7 minutes, 39 seconds expected to commence production in coming quarters. 7:44 7 minutes, 44 seconds These investments along with the upcoming growing customer engagement, continued expansion of our product portfolio position us well for the 7:51 7 minutes, 51 seconds future growth. With strong foundation in place, focus execution, we remain confident in achieving our fullear 7:59 7 minutes, 59 seconds targets and sustainable healthy revenue and growth margin going forward. With this, we now open the floor for Q&A session. Thank you. 8:09 8 minutes, 9 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 8:16 8 minutes, 16 seconds star N1 on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 8:24 8 minutes, 24 seconds two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question assembles. 9:04 9 minutes, 4 seconds The first question is from the line of Sukrit D Patil from Eyesight Vent Private Limited. Please go ahead. 9:10 9 minutes, 10 seconds Uh good morning to the team. I have two questions. My first question is to Mr. 9:14 9 minutes, 14 seconds AJ Singha. uh as RAC now contributes less than 60% of the revenue, what 9:21 9 minutes, 21 seconds specific initiatives are being uh taken to accelerate uh scale in uh SDA and LDA 9:29 9 minutes, 29 seconds over the next uh 12 to 18 months. How do you see uh EPAC uh uh 9:37 9 minutes, 37 seconds positioning itself to capture demand across tier 2 and tier three markets and what role will backbone integration or 9:45 9 minutes, 45 seconds design uh play in uh strengthening the competitiveness? Thank you. That's my first question. I'll ask my second question after that. 9:53 9 minutes, 53 seconds Okay. So regarding our uh specific initiative specially to grow the small domestic appliances, large domestic appliances as shared earlier we are uh 10:03 10 minutes, 3 seconds diversifying both by increasing the product offerings as well as uh diversifying into acquiring of new customers. So specially in small 10:10 10 minutes, 10 seconds domestic appliances we've increased our product portfolio by introducing two new products in the current quarter the last quarter air fryers and nutri blenders. 10:20 10 minutes, 20 seconds Going forward, we have plans to further expand our product portfolio and introduce newer products like coffee makers, tower fans, air fry, air 10:28 10 minutes, 28 seconds purifiers, etc. So with this expansion of product categories and acquisition of more customers, we are poised on strong growth. Similarly, for large domestic 10:37 10 minutes, 37 seconds appliances, uh our washing machine category, we already started the fully automatic topload washing machines. 10:43 10 minutes, 43 seconds Going forward the company is also launching the front load washing machines as well as the semi-auto machines. So uh with this we believe 10:51 10 minutes, 51 seconds that uh we will have a complete bucket of basket of product offerings to the customers and definitely the growth in 10:58 10 minutes, 58 seconds both the SD and LD categories is uh more is very high. Thank you. My second question is to Mr. 11:06 11 minutes, 6 seconds Lora. uh with EIT margins improving over uh 100 uh PPS yearon year, how are you 11:14 11 minutes, 14 seconds planning to balance cost efficiency with capital requirements for scaling uh S uh for scaling SDA and LDA? Could you share 11:23 11 minutes, 23 seconds how the company is approaching working capital optimization and funding uh to support uh multi- category growth while still protecting the profits? Thank you. 11:36 11 minutes, 36 seconds So while evaluating any product uh whether it is SDA, LDA or any line we deploy the capital allocation very 11:44 11 minutes, 44 seconds diligently. We monitor the cost on our product wise and return on each and every product. Before launching any 11:51 11 minutes, 51 seconds product, our internal team and uh every R&D team develop the product and once the product is validated and approved by 11:58 11 minutes, 58 seconds the customer and desired IR and return is being uh calculated that's why we make the investments. So despite the 12:06 12 minutes, 6 seconds increase of the our uh portfolio and other thing our uh ITA margin is increasing and going forward when the 12:14 12 minutes, 14 seconds scale will be there definitely it will broaden our overall margins. Thank you. 12:19 12 minutes, 19 seconds Thank you for the guidance and I wish the entire team best of luck for the next quarter. Thank you. Thank you. 12:35 12 minutes, 35 seconds Thank you. The next question is from the line of Aneruda Jooshi from ICIC Securities. Please go ahead. 12:43 12 minutes, 43 seconds Yeah. Uh thanks for the opportunity and uh congrats to the team for u a good set of numbers given the uh volatility uh in 12:52 12 minutes, 52 seconds the entire segment. Uh sir uh two questions. one, how do you see the overall AC industry uh panning out? One, what was the growth in December quarter? 13:04 13 minutes, 4 seconds Secondly, now from January, we have shifted to new uh B tables. So, what has been the price hike? Um again, uh copper 13:13 13 minutes, 13 seconds and aluminum prices have gone up. So, how it will uh have impact on the uh pricing of the products, eway cost has 13:22 13 minutes, 22 seconds also gone up. So considering all these things how do you see the impact on the uh pricing of the products that is uh uh 13:30 13 minutes, 30 seconds question number two and uh uh three in terms of um overall how do you see the 13:37 13 minutes, 37 seconds entire sector panning out uh at least in Q4 because uh at least uh so far we have seen or whatever channels we have done 13:46 13 minutes, 46 seconds is we understand the growth has been bit uh slower in uh December and again even in uh initial 15 days of January also. 13:55 13 minutes, 55 seconds Yeah. 13:57 13 minutes, 57 seconds So thanks Anud. Uh I think you are already aware that uh the first two quarters were uh the industry degrowth was anywhere between 25 to 30% kind of 14:05 14 minutes, 5 seconds degrowth is what the industry has been experiencing on primary sales. Whereas uh as well as far as secondary sales is confirmed the degrowth has been close to 14:14 14 minutes, 14 seconds 15% for the first two quarters. uh post the GST reduction there was some uh slight recovery and so Q3 was a cheer 14:23 14 minutes, 23 seconds for the industry that the degrowth has has reduced and presently it seems that on the secondary side the degrowth is 14:29 14 minutes, 29 seconds anywhere around 10 to 12%. Uh on top of it especially for manufacturing there 14:36 14 minutes, 36 seconds was a bit push u especially in Q3 uh to ramp up production considering the upgraded be norms coming into effect 14:43 14 minutes, 43 seconds from January. So the demand for RSC is gradually improving uh with implementation of new be norms. The 14:51 14 minutes, 51 seconds industry has begun uh that um especially to from mid of January the production ramp up again started for the newly 14:59 14 minutes, 59 seconds rated BE production. Um Q3 there has been liquidation of primary inventory by most of the brands as far 15:07 15 minutes, 7 seconds as we know uh since these products could continue to be sold in the trade till end of June. So the channel inventory yes is definitely a little high but it 15:16 15 minutes, 16 seconds is expected to normalize post Q4 FY26 supporting healthier demand in production planning going forward and especially with B new products there is 15:25 15 minutes, 25 seconds definitely a cost escalation on account of uh the newly designed product as well as commodity impact of uh Q3 getting 15:33 15 minutes, 33 seconds passed on to Q4 would be minimum uh so both the as well as the commodity impact currently seems around 8 to 10% 15:42 15 minutes, 42 seconds especially for the production ongoing production in Q uh Q4 currently and uh any further increase in commodities 15:50 15 minutes, 50 seconds definitely will have further impact uh on the pricing going forward. Having said that uh for EPEC the margins are 15:59 15 minutes, 59 seconds still protected because for us all commodities are passed through. So, so that protects us but that definitely remains the concern uh considering uh 16:07 16 minutes, 7 seconds the market uh demand outlook if the commodities continue to grow at such significant high levels. 16:15 16 minutes, 15 seconds Uh sure sir uh understood helpful. Um but uh uh do you see the primary sales 16:22 16 minutes, 22 seconds would have happened means like uh the brands like Voltage Booster would have sold to the trade and uh hence the inventory at the brand level would have 16:31 16 minutes, 31 seconds gone down. So there will be more need for manufacturing and they will be sourcing more products from us in Q4. 16:39 16 minutes, 39 seconds Will that be a fair understanding? 16:42 16 minutes, 42 seconds Absolutely. Yes. So yes uh both Q3 and now Q4 the demand outlook is very robust and all the brands are planning uh 16:51 16 minutes, 51 seconds growth over Q over financial year 2425 because for 25 26 has anyways been a bad year. So most of the brands are planning 17:00 17 minutes anywhere between 15 to 20% kind of growth over F2425 numbers and based on it the current order book is very robust 17:07 17 minutes, 7 seconds for us and we firmly believe that this momentum will continue and uh the the demands outlook as of now is very positive. 17:17 17 minutes, 17 seconds Okay. Sure sir. Uh very helpful. Many thanks. 17:24 17 minutes, 24 seconds Thank you. The next the next question is from the line of Savin Sahai from PL Capital. Please go ahead. 17:32 17 minutes, 32 seconds Yeah, thank you for opportunity sir. Uh uh just a clarification uh to what you had given uh some numbers 17:40 17 minutes, 40 seconds like 25 to 30% of a decline in the first half uh of a you know the primary sales 17:48 17 minutes, 48 seconds which has reduced to 10 to 12% what you said by 9 month 17:56 17 minutes, 56 seconds at 25 to 30% growth was in primary sales whereas the secondary sales uh was still 18:02 18 minutes, 2 seconds at 10 to 12% over last 9 months which means the inventory buildup which has 18:09 18 minutes, 9 seconds happened in previous year was kind of uh uh sold out. 18:16 18 minutes, 16 seconds Okay. And uh secondly on the you know you had also guided for the way forward 20 to 25% of a growth for you. So you 18:24 18 minutes, 24 seconds are you you are expecting whatever the liquidation by the brands uh especially in terms of the primary sales which has 18:32 18 minutes, 32 seconds happened in the Q3 that uh giving you indication that's the way forward uh the growth uh for you. 18:40 18 minutes, 40 seconds So currently in line with our discussion with most of the large brand customers most of the brands have planned 18:49 18 minutes, 49 seconds 15 to 20% kind of growth over FY 2425 numbers and the current RFQS and order book is in line with uh such escalated demand. 18:59 18 minutes, 59 seconds Okay. Okay. And uh on the pricing 8 to 10% of a price hike uh uh to pass on uh 19:07 19 minutes, 7 seconds the inflation. So that is for you you are talking on or at the you know the brand label or the sector level you are 19:15 19 minutes, 15 seconds talking about 8 to 10% of this is a cross industry uh sorry mean this is across industry for both us as well as the brand the kind of increase 19:23 19 minutes, 23 seconds which has already impacted the ongoing production with the new B- rated products. So uh part of it uh accounts 19:31 19 minutes, 31 seconds is on account of the new star rating and part of it is the commodity impact which has already uh 19:38 19 minutes, 38 seconds which has already impacted the industry in Lot. 19:42 19 minutes, 42 seconds Okay. Okay. Fine sir. And uh now uh moving to the another uh you know the part of your business which is a component and uh in the component you 19:51 19 minutes, 51 seconds had mentioned that uh the the there there is a good order pipeline of a PCB copper parts and the plastic molding. So 19:59 19 minutes, 59 seconds which product order pipeline is on the higher side? Is it more towards a plastic molding or some other product? 20:09 20 minutes, 9 seconds So for us component business as a whole all the three categories the copper parts, plastic and PCB are rapidly growing. Uh 20:18 20 minutes, 18 seconds for for plastic especially we are doing a lot of components like crossflow fans wherein we have approvals from almost all the marquee clients. So plastic 20:25 20 minutes, 25 seconds parts, PCBs, copper all three the entire component segment is what we see growing at a much faster rate. 20:33 20 minutes, 33 seconds Okay. These are not just components for AC. These are also uh for other diversified uh appliances. 20:41 20 minutes, 41 seconds Okay. Okay. Uh also if you'll uh give us some indication on all the four segment 20:48 20 minutes, 48 seconds like RAC, SDA and NDA and the component how is the margin profile? 20:55 20 minutes, 55 seconds U since we are not reporting margins at segmental basis. Uh I can briefly talk in uh at a very high level. I can talk 21:02 21 minutes, 2 seconds in terms of overall gross margins category wise. So uh even in my earlier calls I've seen that for AC being a high 21:10 21 minutes, 10 seconds ticket size products the margins are the gross margins are the lowest whereas for uh the small domestic appliance of the 21:17 21 minutes, 17 seconds low ticket size products the gross margin is relatively better. So uh considering our overall gross margins uh 21:25 21 minutes, 25 seconds net of bomb cost at around 14 to 15% level uh which is largely indicative of the gross margins in air condition for 21:32 21 minutes, 32 seconds small domestic appliances and large domestic appliances the gross margins are uh comparatively better at around 16 21:40 21 minutes, 40 seconds to 17% and similar is the case with the components. So hence like we see for the results declared in Q3 the margin 21:49 21 minutes, 49 seconds improvement has been on account of the increased revenues from the other sectors the other segments right and uh any indication like how 21:58 21 minutes, 58 seconds their uh x of the r segment contribution for uh next year. 22:07 22 minutes, 7 seconds So going forward we continue that our growth in SDA LD and components will be much bigger and whereas the AC will also 22:14 22 minutes, 14 seconds continue to grow. So our overall guidance remains that AC will be at around 60 to 65% of our total revenue. 22:22 22 minutes, 22 seconds Small domestic appliance is at around 12 to 15% and components again at around 20%. So that is the kind of overall guidance we have uh for uh the um product mix and the revenue mix. 22:35 22 minutes, 35 seconds Right. Right sir and uh just a clarification sir lastly that sir 20 25% value terms you had uh you know 22:42 22 minutes, 42 seconds indicating uh the growth yeah yes yes thank you sir and all the best 22:49 22 minutes, 49 seconds thank you so much thank you next question is from the line of ki from sequent and please go ahead 22:59 22 minutes, 59 seconds uh hello sir can you hear me sir uh I just have one uh latitude 23:07 23 minutes, 7 seconds of uh you have said 20 to 30% uh revenue growth in the coming year FI 27. Sir, 23:16 23 minutes, 16 seconds this is on the FI 27 24 days or FI 20 sorry FI 25 days or 26 days. Dr. 23:36 23 minutes, 36 seconds for the industry growth and the growth in air conditions. So we are discussing that the growth of AC market is uh 23:43 23 minutes, 43 seconds currently seems to be at around 15 to 20% kind of growth in AC numbers for the industry for uh the current uh current 23:53 23 minutes, 53 seconds ongoing discussion. Yes. So you're expecting after three quarters of day growth you're expecting a 20 30% growth in 24:02 24 minutes, 2 seconds future with respect to AC if I'm if my understanding is right. 24:06 24 minutes, 6 seconds So we are talking again I I repeat uh so this is in line with the calendar year discussion for the seasonal AC market. 24:14 24 minutes, 14 seconds So for the current coming season of EC the markets uh is planning a growth of around 15 to 20% over the FY 2425 number 24:23 24 minutes, 23 seconds because the calendar year 26 was a degrowth. So calendar 26 seems that the market will grow at around 15 to 20% 24:30 24 minutes, 30 seconds over calendar year 24 this is the industry growth we are discussing. Yeah. 24:36 24 minutes, 36 seconds Understood. And so uh I just want to uh understand your plan. Can you give us an ballpark update on the uh FX current 24:46 24 minutes, 46 seconds ongoing effects and features FX with respect to washing machine and component uh manufacturing expansion? 24:55 24 minutes, 55 seconds So uh in our uh opening uh for this financial year we have given a guidance that the company is looking at an 25:03 25 minutes, 3 seconds investment of around 450 crores over next 12 to 18 months. In line with that the company has already incurred a 25:10 25 minutes, 10 seconds capeex of almost 220 crores in last 9 months. So in quarter 1 we had an investment of around 45 25:18 25 minutes, 18 seconds crores. Quarter 230 crores and quarter 3 the last quarter another 45 crores. So totally 218 crores is something the 25:26 25 minutes, 26 seconds company has already capitalized in last 9 months and another 6 to 9 months we are looking at an additional 225 cr. 25:38 25 minutes, 38 seconds uh uh unders uh answer my final question if possible can you give us a guidance 25:44 25 minutes, 44 seconds for uh the coming year so 25:52 25 minutes, 52 seconds the the growth in AC is expected to be around 15 to 20% for the coming four to five years and the company is poised 26:01 26 minutes, 1 second strongly to uh grow at a much faster rate at at least at 20 to 25 to 30% 26:07 26 minutes, 7 seconds growth in AC in next 4 till 2030 is the kind of output we have whereas our segments like LDA would grow at a much 26:15 26 minutes, 15 seconds faster rate. So while we continue to grow for AC our growth in SDA LDN components would be much higher. 26:22 26 minutes, 22 seconds Understood life. Please go ahead. Yes. 26:36 26 minutes, 36 seconds Hi sir. Uh good morning. 26:38 26 minutes, 38 seconds Uh sir if you can highlight sir what is the goal? Can you a bit louder? 26:46 26 minutes, 46 seconds Yes sir. Uh semi audible now. Yeah. 26:50 26 minutes, 50 seconds Yeah. Sir if you can give us some light on the oldrated uh stock in the industry and uh what sort of our brand uh saying 26:59 26 minutes, 59 seconds on the new rated how and how the order pick up and ramp up is happening uh as such what is the strategy from the brand and the new rated uh units. 27:11 27 minutes, 11 seconds So Anipam uh as far as the old rated product is concerned the last date of production for the same was 31st of 27:18 27 minutes, 18 seconds December. Um our estimate is currently in uh and the trade inventory put 27:25 27 minutes, 25 seconds together the overall inventory level in the market is approximately at 4 to 4.5 million is the kind of inventory 27:32 27 minutes, 32 seconds currently in the trade which which includes the inventory with the trade partners brands everywhere put together as manufacturer we are not allowed to 27:40 27 minutes, 40 seconds carry any inventory of the olated product. So we have zero inventory of the olated product. uh this inventory 27:50 27 minutes, 50 seconds for the edited over Q4. However, it is allowed 27:58 27 minutes, 58 seconds to be sold till June of uh 26. Uh the new rated production uh the production 28:05 28 minutes, 5 seconds for the new rated uh product for everybody. This is gradually ramping 28:12 28 minutes, 12 seconds up going forward. the entire production has to be done with the nurated uh product only. 28:20 28 minutes, 20 seconds Okay. So just uh one more you may have repeated this on the summer outlook uh how are we uh ready or do we see uh 28:30 28 minutes, 30 seconds let's say first half any growth than the last year because last year there was a good sort of production happened uh how 28:38 28 minutes, 38 seconds uh production or sales do you expect in this first half of next FI27 so uh for the current calendar year Jan 28:47 28 minutes, 47 seconds to June if I talk about last like I've been repeating industry is preparing itself for a growth of almost 15 to 20% 28:54 28 minutes, 54 seconds on calendar year 26 numbers. Hence, we are very positive that both Q4 Jan to March as well as April to June are going 29:02 29 minutes, 2 seconds to be significantly better as compared to the last financial year and the industry is looking at a growth of 15 to 20%. However, having said that, uh for 29:10 29 minutes, 10 seconds the entire financial year 2526, we believe that the industry the growth would be uh close to 10 odd percent um overall. 29:22 29 minutes, 22 seconds Got it. Understood, sir. Thank you. I'll join back in. 29:28 29 minutes, 28 seconds Thank you. The next question is from the line of Dasha from Safire Capital. Please go ahead. 29:36 29 minutes, 36 seconds Hello. Good morning. Yeah. Hello. Yeah. Yeah. 29:43 29 minutes, 43 seconds Hello. 29:46 29 minutes, 46 seconds Yeah. Yeah. So, so I think you mentioned that around AC I think you're targeting 60 65% and SDL around 15 20% and 29:54 29 minutes, 54 seconds components the rest 20% right for next year the product mix but like going ahead because you 30:01 30 minutes, 1 second mentioned that we see LDHD and components growing much faster than the AC growth. So what is the sort of uh 30:08 30 minutes, 8 seconds upgrade product mix say two three years down the line. 30:14 30 minutes, 14 seconds So Bishop for uh medium to long-term horizon this is the outlook that we are trying to diversify and reduce our 30:21 30 minutes, 21 seconds overall dependence on AC and as we can see over last three years we have gradually reduced dependence on AC uh 30:28 30 minutes, 28 seconds from 80% to now currently 57 or 60% and it will further further reduce to around 55% in in a medium-term uh let's say 30:38 30 minutes, 38 seconds till FY 28 29 kind of so so that's the overall guidance that AC contributing 55 % of the overall revenue and our SDA LDA 30:47 30 minutes, 47 seconds growing to 25% and component another 20 25%. So that's the overall revenue mix the company is looking in and in in the medium-term horizon. 30:56 30 minutes, 56 seconds Okay. In the medium term and for FI27 what kind of aa margins are we targeting? 31:06 31 minutes, 6 seconds Again we don't give uh guidance on uh financial year to financial basis but overall the company is confident that we 31:13 31 minutes, 13 seconds will maintain uh uh margin debit margin of 7.5 to 8% in medium to to longerterm region. 31:24 31 minutes, 24 seconds Okay. All right. That's it from my side. Thank you. 31:30 31 minutes, 30 seconds Thank you. The next question is from the line of Tanesha from Dam Capital Advis. Please go ahead. 31:39 31 minutes, 39 seconds Hi sir. Uh just one question. Just a couple of questions. Can I can you bit louder? Yeah. Am I better now? 31:47 31 minutes, 47 seconds Yeah. 31:49 31 minutes, 49 seconds Yeah. So just a couple of questions right starting with AC. Um you know we've spoken about how channel entries 31:56 31 minutes, 56 seconds are yet at around 4 4 and a.5 million and uh you know commodity inflation uh to that extent also calls for price 32:03 32 minutes, 3 seconds hikes which are pretty steep. Um so going ahead while you're expecting while while the brands are also expecting a 15 32:11 32 minutes, 11 seconds 20% sort of a growth for the calendar year um you know how can what are the potential risks to this growth which you 32:18 32 minutes, 18 seconds are seeing obviously uh you know with this whole commodity inflation sort of playing out. So there is one bit where 32:26 32 minutes, 26 seconds brands are sort of positive on demand but at the same time you have these costs uh you know coming up as well. So what would you sort of you know comment on that? 32:37 32 minutes, 37 seconds So T you are an industry expert you know that the risk with any industry and especially seasonal industry like AC uh 32:45 32 minutes, 45 seconds especially uh the demand in terms of the seasonal lift is always 32:52 32 minutes, 52 seconds there but however especially when we are talking about the India market and the overall potential the the tailwinds are 32:59 32 minutes, 59 seconds still strong with the lowest penetration uh one of bad season does not indicate that the overall industry indry is not 33:07 33 minutes, 7 seconds poised to grow. So like I've been repeatedly sharing a 15 to 20% kind of growth in medium to long-term horizon is what the industry is definitely poised 33:15 33 minutes, 15 seconds to achieve and um by almost 2030 the industry is looking at a demand of anywhere up to 28 to 30 million is the 33:24 33 minutes, 24 seconds kind of numbers what everybody is projecting. uh so the overall tailwind still remain very strong and especially 33:31 33 minutes, 31 seconds with now the the be ratings improving year on year the efficiencies going high the electrification 33:38 33 minutes, 38 seconds uh the incomes per capita income improving uh we don't we have witnessed that in last 3 to four years the overall 33:47 33 minutes, 47 seconds seasonality effect has reduced and AC is becoming more of a uniform demand across quarters although although not to that level but then it is significantly 33:56 33 minutes, 56 seconds improving every quarter Hence uh any seasonal risks are getting reduced year on year and especially if 34:04 34 minutes, 4 seconds if we are worried about a one bad of season in calendar year 25 it it has to be also looked from the perspective that the year previous to it it grew at 34:13 34 minutes, 13 seconds almost 30% plus. So already at a much higher level this kind of risks are always there. But now uh the the de 34:22 34 minutes, 22 seconds overall demand situation seems to be more uh rational and uniform. Hence uh the risks are bare minimum. 34:33 34 minutes, 33 seconds Got that. Got that. So and second uh in your opening remarks you also spoke about uh how washing machines uh can be 34:41 34 minutes, 41 seconds a meaningful contributor to uh revenues and margins. So you know any comments on how we're sort of scaling that up? Um you spoke about getting into top loads 34:49 34 minutes, 49 seconds and then front loads also uh given that you know in the industry there is barely any outsourcing which happens for front loads almost minimal you know what is uh 34:57 34 minutes, 57 seconds what is our plan out there in terms of washing machines. 35:02 35 minutes, 2 seconds So T in terms of washing machine we had started our topload fully automatic washing machine almost two quarters ago and now we see significant ramp up 35:11 35 minutes, 11 seconds happening with acquisition of two key new multinational customers with whom the demand outlook is extremely good and 35:19 35 minutes, 19 seconds this gives us a lot of confidence. uh we have we are already witnessing a large ramp up happening in our washing machine 35:25 35 minutes, 25 seconds category and uh with our highense GV we have already started now uh the uh setup 35:34 35 minutes, 34 seconds of our new line for the front load again wherein we see highense as one of the key customers and then other customers are also in the pipeline. So like you 35:41 35 minutes, 41 seconds rightly said currently there's no meaningful outsourcing happening for the front loop but at the same time there there are no established 35:49 35 minutes, 49 seconds uh manufacturers also in India for the front load. Uh so that gives us confidence and this is what we see as a 35:56 35 minutes, 56 seconds growth contributor which will then drive our further growth in uh washing machine category. Uh semi-automatic or twin tub 36:03 36 minutes, 3 seconds is more uh is a category just to fulfill the entire uh product catalog uh the product offering. So for us the focus 36:11 36 minutes, 11 seconds remains largely on the uh fully automatic both top load and front load and we see significant ramp up happening uh in next three to four quarters. 36:22 36 minutes, 22 seconds Got that sir. Okay. Thank you sir. Thank you. Thank you. 36:30 36 minutes, 30 seconds Thank you. The next question is from the line of Ashish Jen from Meuire. Please go ahead. 36:38 36 minutes, 38 seconds Hi sir uh good morning. Uh so my first question is you know this 15 20% growth you're talking about is uh volume terms I assume 36:47 36 minutes, 47 seconds or yes or that's for the okay and then secondly you know the four four and a half million inventory that you spoke about 36:54 36 minutes, 54 seconds at the end of September with the channel and all what would it be in a normal year will it be like half of that number? 37:03 37 minutes, 3 seconds Again these are estimated numbers but uh typically the opening inventory in the Jan quarter for the industry is to take 37:11 37 minutes, 11 seconds care of the projected sales in the current quarter. So that's how the overall inventory levels are typically. 37:16 37 minutes, 16 seconds So again it would be a very rough estimate but not half it if today we are seeing 4 and a half million probably the 37:25 37 minutes, 25 seconds earlier years it would have been at around 3 or 3.5 million. So the inventory levels are now not significantly high. So they are well 37:33 37 minutes, 33 seconds within the band of let's say excess of 20% or so. 37:37 37 minutes, 37 seconds Got it. Got it. And sir just lastly you know in terms of the cost or price inflation when you spoke about 8 to 10% 37:45 37 minutes, 45 seconds price hike uh is required that is factoring the current commodity prices or what does that factor in terms of commodity? 37:55 37 minutes, 55 seconds In terms of commodity there is a lag of one quarter. So it factors the commodity of previous quarter which is October, November, December. 38:06 38 minutes, 6 seconds The average of that quarter but I'm just I'm asking because you know it has been a oneway direction in terms of commodities. So when you say previous quarter is it average of that how does it work? 38:14 38 minutes, 14 seconds Average of October, November, December and yeah yeah so is already higher right? 38:23 38 minutes, 23 seconds Yeah. So very broadly if I say 8 to 10% hike in price 50% of it is contributed by the uh rerating of the product the be 38:32 38 minutes, 32 seconds and almost 50% because of the commodity increase in the last quarter October November December. So that is something which will impact the new rated product 38:40 38 minutes, 40 seconds which is currently ongoing in Jan March quarter. Got it. Got it sir. That's very helpful. 38:47 38 minutes, 47 seconds Thank you so much. 38:51 38 minutes, 51 seconds Thank you. The next question is from the line of Sabhanu from Treehead Capital. Please go ahead. 38:59 38 minutes, 59 seconds Hello. Uh good morning. Hope I hope hope I am audible. Uh yes sir. Can you help me? Yes sir. 39:05 39 minutes, 5 seconds Yeah. Uh sir uh I am very new in this industry and in this company. Uh sir can you tell me our uh pay reduce uh 39:14 39 minutes, 14 seconds drastically? This is for a uh similar phenomena. 39:19 39 minutes, 19 seconds Can you uh bit clear and so we are not able to uh okay uh our payable days reduce 39:27 39 minutes, 27 seconds drastically. This is a figure payable payable days. 39:39 39 minutes, 39 seconds Oh okay. So the paid payable days for us has reduced because we have been carrying uh inventory uh paid inventory 39:48 39 minutes, 48 seconds paid paid inventory and there has been no new procurement uh done largely in the last quarter. Whatever inventory was 39:55 39 minutes, 55 seconds left over because of the uh the demand being going down due to unseasonal rains has now been consumed in the last quarter. So there was no need. 40:05 40 minutes, 5 seconds Okay. Okay. Okay. But what is the what are what is the normalized payable days and going forward we can expect? 40:13 40 minutes, 13 seconds Normal normalized payable days are between 90 to 100 days. Okay. Okay. 40:22 40 minutes, 22 seconds Okay. My second question is uh which are the revenue we are calculating in the other income other segment? Sorry in our revenue. 40:28 40 minutes, 28 seconds Can you please join the for more questions? Other other revenue includes the basically whatever the flow. So 40:35 40 minutes, 35 seconds whatever the basically component which are supplied as a spare part this is known as other revenue and apart from 40:43 40 minutes, 43 seconds that there is a uh other income which is there in other income not in other so there is around 100 cr is there which is basically spare parts of it. 40:53 40 minutes, 53 seconds Okay. Okay. Okay. Thank you sir. Thank you. Thank you. 41:00 41 minutes Thank you. The next question is from the line of Alshia Kosla from Nirmal Ban Institutional Equities. Please go ahead. 41:08 41 minutes, 8 seconds Yeah. Hi, thanks for taking the session. 41:11 41 minutes, 11 seconds I just want to understand on the components part of the business. Uh it has been doing good for the uh previous 41:18 41 minutes, 18 seconds couple of quarters. Uh so AC basically being very muted the AC industry. What is leading to this components uh growth? 41:26 41 minutes, 26 seconds I mean is there some what are the different specific industries that we are also supplying apart from 41:33 41 minutes, 33 seconds Asia component sales for us is uh to not only AC industry it is to electrical 41:40 41 minutes, 40 seconds meters it is for coolers it is for washing machine so there are multiple products uh categories or or appliances 41:48 41 minutes, 48 seconds wherein we are supplying the component okay and on the LD DA as well. I mean 41:57 41 minutes, 57 seconds we've seen a good growth in this quarter. So what is what are the specific products if you could just highlight for I think this LDA demand. 42:05 42 minutes, 5 seconds So LDA currently we have only two product categories. Cooler which is now almost a year old product for us and then second is the newly introduced 42:12 42 minutes, 12 seconds washing machines. Coolers and washing machines are the two product categories and both are very new and we see significant ramp up happening in the coming quarters in both the categories. 42:23 42 minutes, 23 seconds Got it. But I'm assuming pruners have still been muted this quarter, right? 42:27 42 minutes, 27 seconds And so the basic demand has come in from washing machines only. Yes. 42:33 42 minutes, 33 seconds Got it. And uh so lastly, how are we placed on hyphens? Uh I mean are we completely on track for and for hyphens specifically for are we doing the new B related products? 42:45 42 minutes, 45 seconds So high sense uh like we've been sharing earlier one is the ODM product which is currently being supplied from our 42:52 42 minutes, 52 seconds existing CCT plant. So that ramp up is happening and supplies have been consistently going on in the last year. 43:00 43 minutes Uh the newly formed JV facility which was under construction has now completed the construction and trial production is on track 43:09 43 minutes, 9 seconds and have progressed very well. With all key milestones achieved, the facility is now ready to commence production in the current quarter which is Q4 F26. The 43:18 43 minutes, 18 seconds plant will initially manufacture RSC's for domestic market and will gradually expand to export market particularly focus on Middle East GCS entries in 43:25 43 minutes, 25 seconds Africa and this facility will not only be confined to uh to RCS for highness. 43:32 43 minutes, 32 seconds Going forward the plan is also to manufacture the fully automatic top front load washing machines and then TVs also which will start we will start 43:41 43 minutes, 41 seconds ramping up and introducing uh every quarter. So there is a large pipeline and a complete road map in place to 43:48 43 minutes, 48 seconds streamline the overall production uh products and customers at the high GV. 43:56 43 minutes, 56 seconds Sure. Thank you. That's excellent. 44:01 44 minutes, 1 second Thank you. The next question is from the line of Mr. Achelari from Noama Institutional Equities. Please go ahead. 44:09 44 minutes, 9 seconds Yeah. Uh good morning sir. Thank you for the opportunity. Um just wanted to understand in terms of the cost impact 44:17 44 minutes, 17 seconds uh um you know while you have talked about in percentage but I just wanted to understand um you know on an absolute 44:24 44 minutes, 24 seconds basis for a uh threear inverter which is the most popular SKU what is the actual 44:31 44 minutes, 31 seconds bomb increase in price what you have seen basis uh October November December prices uh is that closer to 2,000 rupees 44:40 44 minutes, 40 seconds is that 2500 or more of 1500 So a it will it's an interesting question. It will be difficult to answer 44:48 44 minutes, 48 seconds in absolute terms because it will vary from brand to brand and model to model. Yeah. Yeah. Fair point. 44:55 44 minutes, 55 seconds But on like I shared earlier especially for three star the cost increase because of the be upgradation is anywhere 45:02 45 minutes, 2 seconds between 3 to 5%. Whereas for a fivestar it is let's say slightly more at 5 to 8%. And similar is the commodity impact. 45:10 45 minutes, 10 seconds For three star the commodity impact of the last quarter compared to the last year December quarter is 5 to 6% whereas for the five star it is slightly more. 45:20 45 minutes, 20 seconds So when we say that the overall cost increase is 8 to 10% it is considering an average of three star and fivestar the increase on three star is slightly 45:28 45 minutes, 28 seconds less whereas on five star it is more and hence we have seen that even in last quarter u majority of production which was being 45:37 45 minutes, 37 seconds done by the brands have been focusing towards increasing the fivestar production. 45:44 45 minutes, 44 seconds Understood. And given the prices have risen, commodity prices have risen further in Jan. Uh does that mean that 45:52 45 minutes, 52 seconds uh there there has to be further price increase um in April, May, June for you? 46:00 46 minutes The current further impact is something which still needs to be assessed and I think we'll be in a better position once it stabilizes. So because it has to be 46:08 46 minutes, 8 seconds an average of at least Jan, Feb, March, we will have to slightly wait and watch how uh whether it stabilizes or it 46:15 46 minutes, 15 seconds continues its upward trend. But under the current circumstances, the a second price increase is something which is imminent 46:23 46 minutes, 23 seconds and is it fair to say that uh you know um the pricing methodology is fairly standard across the industry across the players across the brands? 46:32 46 minutes, 32 seconds Yes, it is more or less industry standard. 46:34 46 minutes, 34 seconds So the the margins are on a perunit basis. Have I understood right sir? Yes ma'am. Yes. 46:42 46 minutes, 42 seconds So theoretically a percentage margin could look lower in FI27 if the current prices were to sustain. 46:53 46 minutes, 53 seconds So, so it is difficult to put numbers in that way. But yes, if the commodity impacts 47:02 47 minutes, 2 seconds are passed as it is or as a pass through per unit basis, yes, the margins will might look slightly subdued uh but the 47:10 47 minutes, 10 seconds overall EITA and uh the growth will still continue. 47:15 47 minutes, 15 seconds That's fair point sir. Uh thank you and I wish you all the best. Thank you so much. Thank you so much. 47:22 47 minutes, 22 seconds Thank you. The next question is from the line of Balis Abramanyam from Arhan Capital. Please go ahead. 47:31 47 minutes, 31 seconds Good morning sir. Uh thank you so much for the opportunities sir. We are strategically expanding uh components uh 47:38 47 minutes, 38 seconds specifically energy meters, audio uh through EPAC components or engine audio and how do how does the margin and uh 47:47 47 minutes, 47 seconds ROC of these new component businesses compared to legacy RSC uh component business 47:56 47 minutes, 56 seconds I I think I answered this questions previously also I repeat the same uh since we are not reporting uh at segmental basis a bit margin for us I 48:06 48 minutes, 6 seconds can largely give an indication in terms of the overall gross margin. So the uh the material margin in component is comparatively better as compared to the 48:14 48 minutes, 14 seconds overall RC which is typically at 14 to 15% material margin. The component gross margins are somewhere at 16 to 18% kind. 48:23 48 minutes, 23 seconds So that's again a very broad guidance because we are not reporting numbers at segmental basis but that's broadly the guidance I can tell you. 48:33 48 minutes, 33 seconds Okay sir. So I think three years back uh uh top two customers nearly accounted for nearly 70%age of revenue being 48:41 48 minutes, 41 seconds reduced to 38% in uh Q3 uh 9 month of I26 and uh maybe next two to two to 48:48 48 minutes, 48 seconds three years time frame. So what kind of further uh diversifications we can expect? I think we are adding lot of uh new customers. uh I think recently we 48:57 48 minutes, 57 seconds also uh had a partnership with Panasonic and Daika and I just want to understand how this uh diversifications 49:05 49 minutes, 5 seconds uh will will happen over next two to three years time frame and also you can mention uh what are the upcoming 49:12 49 minutes, 12 seconds products uh like tower fan air dryer air purifier so what are the expected launch timeline and addressable market for 49:20 49 minutes, 20 seconds these products Mr. Balance aluminium I think we have now reached a very ideal situation 49:27 49 minutes, 27 seconds wherein the top two customers contribute to 35 to 40% kind of revenue where while we continue to grow our other product 49:34 49 minutes, 34 seconds categories we are very mindful that we also need to look at increasing our wallet share from the existing customers so uh not be one way wherein we 49:44 49 minutes, 44 seconds continuously keep on reducing because we also want to increase our wallet share with each of the existing RQ clients so at the current level we think we've 49:51 49 minutes, 51 seconds optimized it largely in last 3 years reducing from almost 70% plus to today 35 to 40%. And this seems to be quite an 49:59 49 minutes, 59 seconds ideal uh number. Uh any further reduction is not what we are looking at. 50:06 50 minutes, 6 seconds We are looking at increasing our wallet shares by diverse offering diverse products to the same customers because cross-selling is something which 50:14 50 minutes, 14 seconds definitely helps us to achieve uh better revenue growth and better margins. Uh so uh but anyways uh in the medium to long 50:21 50 minutes, 21 seconds term you see that our overall dependence on top two to three customers should be maintained anywhere uh around 30 odd%. 50:30 50 minutes, 30 seconds Uh okay so my second question I already mentioned that upcoming products like cover plan air dryer air 50:37 50 minutes, 37 seconds so what are expected launch timeline and addressable market of these products? 50:44 50 minutes, 44 seconds So each of these markets are part of our overall SDA growth road map where in every quarter we are looking to launch new product categories one to two newer 50:53 50 minutes, 53 seconds products and then look at gradually ramping up. So in the current quarter quarter four we are looking to launch at least two new products uh vacuum 51:01 51 minutes, 1 second cleaners and tower fans and then slowly use them as as so this would be the launch pad and then gradually start wrapping up this product categories. We 51:10 51 minutes, 10 seconds also understand the limitations that uh we cannot uh continuously keep on increasing the overall product categories year on year. So uh 51:19 51 minutes, 19 seconds especially in small domestic appliances we want to limit ourselves at overall product offerings of 8 to 10 numbers and then create each category as a growth 51:28 51 minutes, 28 seconds lever and then do both horizontal and vertical deployment by backward integration and then uh penetrating newer customers increasing the product 51:36 51 minutes, 36 seconds portfolio. So the next journey would be on increasing the margins in the newly launched product categories by we have 51:43 51 minutes, 43 seconds backward integration uh increasing our market share. So so yes we are increasing the product categories but at 51:51 51 minutes, 51 seconds the very same time we are also very mindful that it consumes a lot of bandwidth so we cannot keep on increasing continuously. 51:59 51 minutes, 59 seconds Got it sir. Thank you. 52:04 52 minutes, 4 seconds Thank you ladies and gentlemen. In order to ensure that the management will be able to address questions from all the participants in the conference, kindly 52:12 52 minutes, 12 seconds limit your questions to one per participant. Should you have a follow-up question, please rejoin the queue. The next question is from the line of 52:19 52 minutes, 19 seconds Vidisha from CRQ Kotari and sons. Please go ahead. 52:27 52 minutes, 27 seconds Hello sir. Given hello in audible please go ahead. 52:34 52 minutes, 34 seconds Yeah. So given uh the revenue it's big line around 13 14%. So what is the outlook for quarter 4 like how will FI26 52:42 52 minutes, 42 seconds pan out any Martin guidance Visha I think last like I have shared 52:50 52 minutes, 50 seconds earlier since RSC contributes almost 70 65 to 70% of our overall sales and 52:58 52 minutes, 58 seconds wherein we have witnessed the industry to degrow at uh 10 to 15% is what the industry degrowth we estimate at the end 53:06 53 minutes, 6 seconds of this initial year. So in line with that our key sector AC definitely we will see an overall degrowth but for the 53:14 53 minutes, 14 seconds overall revenue numbers our other levers like SDA LDA components have helped us recover a lot of that lost revenue and 53:22 53 minutes, 22 seconds at best currently we are estimating a flattish kind of revenue for the current financial year of 256 53:29 53 minutes, 29 seconds or a marginal growth. So at best a flatish or a marginal growth in overall revenue numbers what we are looking or 53:36 53 minutes, 36 seconds in another way I we are saying that the the degrowth in AC we are looking to recover from our growth in the other uh diversified sectors. 53:49 53 minutes, 49 seconds Thank you. The next question is from the line of Aryan Bhya from Invet Research. Please go ahead. 53:57 53 minutes, 57 seconds Thanks for the opportunity sir. My question is on EA. So if I look at the past few quarters, it has been 54:03 54 minutes, 3 seconds constantly making losses and we have a commercial production in Q2 by 26 and if 54:10 54 minutes, 10 seconds I look at the history of the company as well, it has been making losses. So what gives us the confidence that we will be able to make the you know loss making 54:19 54 minutes, 19 seconds company profitable in the upcoming few quarters. 54:24 54 minutes, 24 seconds So RNA power for us is a strategic investment. 54:28 54 minutes, 28 seconds So it is not only a backward integration, it also helps us position support the growing demand for energy 54:36 54 minutes, 36 seconds efficient since the B rating is upgraded every year. PL application is increasing every 54:43 54 minutes, 43 seconds year and we are not only looking to manufacture motors for AC but also for other appliances like washing machines, 54:49 54 minutes, 49 seconds fans, HVLS fans. So the new green field facility in commenced production trial production in end of Q2. Q3 we have seen 54:58 54 minutes, 58 seconds the ramp up happening and uh as in Q3 the AC market has uh recovered. There has been some sales which has happened 55:06 55 minutes, 6 seconds but more importantly for us the approvals from all the key clients has happened and Q4 onwards we are looking at uh reducing first the loss year on 55:16 55 minutes, 16 seconds year and definitely FY27 we will see this company trending into green from red. 55:24 55 minutes, 24 seconds Thank you. The next question is from the line of Karan Gupta from AC M. Please your line is unmuted. Please proceed. 55:37 55 minutes, 37 seconds Yes, please. 55:38 55 minutes, 38 seconds Yes, it's my question on the order book side. Uh do you have a order book on 55:46 55 minutes, 46 seconds SGDA in component side? Any discussion on that? 55:55 55 minutes, 55 seconds Yeah. So current we have a projections. 55:58 55 minutes, 58 seconds So for this industry the order book is not confirmed to it is always 6 12 months of projections received from the customer. So in terms of order book for 56:06 56 minutes, 6 seconds both SD and LDA it is uh extremely encouraging to see the growth in SDLA 56:14 56 minutes, 14 seconds categories both uh so this gives us lot of confidence that these two categories will drive both revenue growth and margin growth for us and we see 56:22 56 minutes, 22 seconds significant improvements going forward both in SDL categories the current existing product as well as the newer product categories what we are uh 56:30 56 minutes, 30 seconds sharing that we will be introducing them in the coming quarters. So yes, the order book is there. Uh these are not in terms of confirmed views. These are 56:38 56 minutes, 38 seconds always in terms of uh prediction three from here. 56:43 56 minutes, 43 seconds Thank you. The next question is from the line of Nepali Benson from Ventura Enterprises. Please go ahead. 56:50 56 minutes, 50 seconds Hello sir, good morning. Uh would you be able to give me the revenue potential of the recently launched as you've 56:58 56 minutes, 58 seconds mentioned that air fry we might sell 1 million units for 200 crores in the next coming years. Would you be able to give us some like what is the revenue 57:05 57 minutes, 5 seconds potential of let's say infrared vacuum cleaners coffee blender coffee makers and nutri blenders. 57:13 57 minutes, 13 seconds So each of the smaller appliances like air fryers infrared coffee blenders these each are in three-digit category. 57:20 57 minutes, 20 seconds So they are 800 to,000 cr categories each in terms of market potential and we are looking to slowly increase our 57:28 57 minutes, 28 seconds wallet share in these categories starting from zero to 20% 30% in years to come. So so that is uh we believe that each of these categories could ramp 57:36 57 minutes, 36 seconds up to be 150 to 200 categories in in a medium horizon 3 to 5 years. 57:44 57 minutes, 44 seconds Thank you. The next question is from the line of data from Monarch AI. Please go ahead. 57:51 57 minutes, 51 seconds Yeah. Hi sir, I had one question. Um, our interest cost in this quarter has come down from earlier 20 kores to now 57:59 57 minutes, 59 seconds 13 crores. Could you help me understand how are we able to bring this down? 58:09 58 minutes, 9 seconds I think I think there is some error in your view. The cost is similar up to the last quarter. So uh definitely uh we are 58:18 58 minutes, 18 seconds cons continuously improving our uh inventory level and working capital and we are gear up to reduce the interest cost but uh it is the same as last 58:28 58 minutes, 28 seconds quarter ladies and gentlemen due to time 58:39 58 minutes, 39 seconds constraint that is the last question for today and now hand the conference over to Mr. Tanesha for closing comments. 58:45 58 minutes, 45 seconds Thank you and over to you sir. 58:48 58 minutes, 48 seconds Uh thank you uh thank you sir uh for giving us an opportunity to host the call. Um wishing you all the very best 58:56 58 minutes, 56 seconds for fourth quarter and the upcoming year. Uh any closing comments on your side. 59:01 59 minutes, 1 second Yeah. So thank you all for participating in this earnings call today. I hope we have been able to answer our questions satisfiably and thanks to Dan Capital for hosting the poll. Thank you so much. 59:14 59 minutes, 14 seconds Thank you all. On behalf of Dam Capital Advisers Limited, that concludes this conference. Thank you for joining us today and you may now disconnect your lines. 59:24 59 minutes, 24 seconds Thank you. Thank you.