Euro Pratik Sales Limited — Q3 FY26

Euro Pratik Sales Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=V8dLmMXYQPA Published: 3 months ago

0:00 Ladies and gentlemen, good day and welcome to Europratik Sales Limited Q3 FI26 earnings conference call. As a 0:08 8 seconds reminder, all participants line will be in the listenon mode and there will be an opportunity for you to ask questions after the presentation concludes. Should 0:16 16 seconds you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that 0:24 24 seconds this conference is being recorded. I now hand the conference over to Miss Aayushi Gupta from MUFG in time private limited. 0:31 31 seconds Thank you and over to you. 0:35 35 seconds Thank you. Good morning ladies and gentlemen. I welcome you to the Q3 and 9 months SI26 earnings conference call of 0:43 43 seconds Europratic sales limited to discuss performance. We have from the management Mr. Pratik Singhi chairman and managing 0:50 50 seconds director, Mr. J. Singi, executive director and CFO and Mr. Alpui finance controller. Before we proceed to the 0:58 58 seconds call, I would like to mention that some of the statements made in today's call may be forward-looking in nature and may involve risk and uncertaintities. For 1:07 1 minute, 7 seconds more details, kindly refer to the investor presentation and other filings that can be found on the company's website. Without further ado, I would 1:15 1 minute, 15 seconds like to hand over the call to the management for their opening remarks and then we can open the floor for Q&A. Thank you and over to you, sir. 1:28 1 minute, 28 seconds Uh hello everyone. I'm Pratik Singhi here the MD of the company Europratic Sales Limited. Uh good morning and thank 1:35 1 minute, 35 seconds you all for joining us for the earnings conference call of our company to discuss QR three and 9 months FI26 results. I hope you all had the 1:44 1 minute, 44 seconds opportunity to review our finance financial results and investor presentation which have been uploaded to both the stock exchange and our company 1:52 1 minute, 52 seconds website. Let me begin by expressing my sincere gratitude to our investors, partners, stakeholders for the trust and 1:59 1 minute, 59 seconds confidence you have placed in Europratic sales limited. On 23rd fe uh September 2025, we reached an important milestone 2:07 2 minutes, 7 seconds as entered the public markets as a listed company. The successful completion of our IPO marks a significant step forward as we 2:16 2 minutes, 16 seconds strengthen our position as one of India's leading players in innovative and decorative interior solutions. 2:23 2 minutes, 23 seconds Before we move to the financial highlights of this quarter, let me take a moment to introduce our company to you. Europa Sales Limited Incorporated 2:31 2 minutes, 31 seconds in 2010 has grown into one of India's leading sellers and marketers of decorative surface decorative product 2:40 2 minutes, 40 seconds industry. We offer an eco-friendly pre-finished readytouse portfolio uh product portfolio tailored to modern 2:47 2 minutes, 47 seconds interior needs. As per the technopac report, we are amongst the largest organized player in the new decorative 2:54 2 minutes, 54 seconds wall panel segment with a strong revenue share of 15.87%. 2:59 2 minutes, 59 seconds Our fast fashion approach to wall panels and laminates is driven by continuous product innovation, rapid design cycles 3:05 3 minutes, 5 seconds and marketled development. Through our flagship brands, Zeropatraik and Glorio, we offer a wide and continuously 3:14 3 minutes, 14 seconds expanding portfolio spanning more than 30 product categories and over 3,000 designs. Our innovation pipeline remains 3:21 3 minutes, 21 seconds strong with nine new products currently under development comprising over 308 new designs. Our in-house R&D team 3:29 3 minutes, 29 seconds closely tracks emerging design trends and cons customer preferences, enabling us to introduce over thousand new 3:36 3 minutes, 36 seconds designs every year. Over the last four years alone, we have launched 113 cataloges, averaging two new cataloges 3:43 3 minutes, 43 seconds every single month, each featuring 50 to 60 fresh designs. This ensures that our offerings remain relevant and trend forward. 3:53 3 minutes, 53 seconds In FI26, we continue to execute our fast fashion strategy by refreshing and expanding our product portfolio. During 4:00 4 minutes the quarter, we launched our economy series for uh Decolite, Artisan 3, Vintex under the Glorio brand along with leatherite range under Millennium Decor. 4:12 4 minutes, 12 seconds These launches reflect our focus on design, innovation, affordability, and speed to market. In 9 month FI26 decorative wall panels contributed 4:21 4 minutes, 21 seconds around 66.5% of our revenue. Decorative laminates accounted for 26.9% and the remaining portion came from 4:29 4 minutes, 29 seconds allied products such as interior films and other miscellaneous offerings providing resilience and diversification to our business model. 4:38 4 minutes, 38 seconds We operate on a fixed asset light model through long-term partnership with more than 36 contract manufacturers across 4:45 4 minutes, 45 seconds India, South Korea, China, United States and other key international locations. 4:50 4 minutes, 50 seconds This allows us to scale efficiently while managing strict quality standards. 4:54 4 minutes, 54 seconds Our distribution network spans 188 in India, two in Nepal, 138 cities, 25 states and six union territories with 5:04 5 minutes, 4 seconds nearly 1 lakh 84,162 ft of operational warehouse located strategically across Bandi, Chennai, 5:13 5 minutes, 13 seconds Delhi, Bangalore. It enables efficient logistics and timely deliveries. Let me 5:20 5 minutes, 20 seconds now brief uh briefly touch upon our industry landscape. The decorative interior industry is seeing strong 5:27 5 minutes, 27 seconds momentum driven by rapid urbanization, rising disposable incomes and growing preference for quick installation. 5:34 5 minutes, 34 seconds According to the Technopac report, the decorative wall segment is expected to grow at a CAGR of 18% from FI24 to FI 5:42 5 minutes, 42 seconds 29. Similarly, the decorative laminate segment is projected to grow at a CAGR of 12%. There is a clear transition 5:49 5 minutes, 49 seconds underway towards the organized segment across both categories. This shift aligns strongly with our strengths and 5:56 5 minutes, 56 seconds positions us to effectively capture upcoming growth opportunities. Let me now move to our strategic acquisitions. 6:04 6 minutes, 4 seconds Over the past two years, we have taken several strategic steps to strengthen and expand our platform. In the year 2024, we incorporated our subsidiary 6:13 6 minutes, 13 seconds Glorio decor private limited through which we acquired the business of V decor. We also acquired businesses of billionm decor, europratic laminate LLP 6:22 6 minutes, 22 seconds and secured a contra controlling interest in Europratic index LLP. 6:29 6 minutes, 29 seconds Further further uh consolidating our presence in the surface decorative segment. 6:36 6 minutes, 36 seconds Alongside domestic expansion, we have advanced our international growth strategy by entering new markets in United States and UAE. In 2025, we 6:45 6 minutes, 45 seconds continued to build on this momentum and took a significant step towards through uh step forward through forward 6:52 6 minutes, 52 seconds integration of acquiring a 51% stake in Eurovven world one of the South India's respected interior surface brands. This 7:01 7 minutes, 1 second acquisition strengthen strengthens our entry into B2C retail segment. Provides direct insights into end customer 7:07 7 minutes, 7 seconds preferences. As we look ahead, we remain confident about the road before us. 7:15 7 minutes, 15 seconds Strong industry tailwinds, a clear shift toward organized layers, GST rationalization, rapid urbanization, and 7:22 7 minutes, 22 seconds growing consu consumer preference for aesthetic and eco-friendly interior solutions creates a powerful environment 7:29 7 minutes, 29 seconds for sustainable growth. With the fast fashion approach and a consistent pipeline of trendy trend trendy globally 7:36 7 minutes, 36 seconds inspired collections, Europratik is well positioned to capitalize on these opportunities. Now I would like to uh request our financial controller Mr. 7:45 7 minutes, 45 seconds Alpoi to share highlights of our financial performance. Thank you very much. 7:51 7 minutes, 51 seconds Thank you Pratik. Good morning friends everyone. Let me walk you through the financial highlights for the quarter. 7:59 7 minutes, 59 seconds Our revenue for the quarter stood at rupees 18.4 4 cr rupes compared to 75.1 8:07 8 minutes, 7 seconds cr rupes in Q3 SY25 reflecting a year-on-year growth of 7%. 8:14 8 minutes, 14 seconds Operating IVITA for the quarter was 34.6 cr up from 27.4 4 crores in Q3 FI25 8:25 8 minutes, 25 seconds with a EITA margin at 43.1% delivering a strong 26% year-on-year growth driven by our operating leverage. 8:37 8 minutes, 37 seconds Profit after tax for the quarter came in at rupees 23.6 crores as compared to 8:46 8 minutes, 46 seconds rupees 20.2 crores in the same period last year. margin a 17% year-on-year 8:55 8 minutes, 55 seconds increase with a pack margin stood at 29.4%. 9:00 9 minutes Moving through the 9 month period, our revenue from operations reached rupees 9:07 9 minutes, 7 seconds 241.5 crores as compared to rupees 211.3 crores in the same period of the last 9:16 9 minutes, 16 seconds year reflecting a yearon-year growth of 14.3%. 9:21 9 minutes, 21 seconds ITA for 9 months FY26 stood at rupees 87.5 crores with the IITA margin of 36.2%. 9:32 9 minutes, 32 seconds Pat for 9 months SI26 aimed it at rupees 55.6 crores and the pack margin was 23%. 9:43 9 minutes, 43 seconds Thank you. That concludes my remarks. We can now open the floor for question and answer. 9:52 9 minutes, 52 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 touchtone 10:00 10 minutes telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a 10:09 10 minutes, 9 seconds question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. 10:17 10 minutes, 17 seconds The first question is from the line of Pitesh from Lucky Investments. Please go ahead. 10:26 10 minutes, 26 seconds Yeah. Hi. Uh my question is with respect to the topline growth for the quarter. 10:33 10 minutes, 33 seconds So you know when you look at your presentation and the industry slide that you have put where the wall decorative 10:40 10 minutes, 40 seconds panel growth said is a bigger number. So to dissect the 7% growth uh how do you look at that number for 10:49 10 minutes, 49 seconds the quarter three are there any misses and how do you look at the incremental growth coming up for let's say H2 and 10:59 10 minutes, 59 seconds maybe next year uh that would be very helpful in understanding just the revenue growth part and obviously you have done very good at margins but you 11:07 11 minutes, 7 seconds know revenue growth is what we wanted to understand Thank you Pritesh. I'm Pratik here. uh 11:17 11 minutes, 17 seconds there there was uh in the last quarter quarter three uh as you know that there was some uh pollution uh restrictions in 11:25 11 minutes, 25 seconds north part of the country that uh resulted a little bit of slip in the sales uh in the north India but uh it 11:33 11 minutes, 33 seconds was very well recovered uh from the south India sales which we did almost uh 40% 11:39 11 minutes, 39 seconds uh in in uh in our sales in the third quarter u going forward as acquisition 11:46 11 minutes, 46 seconds was done from 1st December. We will have a full three months uh in the current quarter also. Uh now uh this quarter 11:55 11 minutes, 55 seconds seems to be more promising and we are confident uh that we can deliver both top line and bottom line growth in the fourth quarter onwards. 12:05 12 minutes, 5 seconds So can you dissect the the north India performance and rest of India performance for quarter three? How much 12:13 12 minutes, 13 seconds did rest of India grow and how much the or what was the impact from North India? 12:23 12 minutes, 23 seconds So, North India as rightly said the uh construction restrictions which was going on that has uh did not result into 12:32 12 minutes, 32 seconds the expected sales which was the external factor. However, the south grown very well. uh industry uh has been 12:40 12 minutes, 40 seconds projected to grow at 18 to 20%. And in Q even after post Diwali there are couple 12:48 12 minutes, 48 seconds of uh uh weeks which generally overall there is a low in the northern part of the India and that has dissected the 12:57 12 minutes, 57 seconds revenue growth in the northern part of India. But we are hopeful that lifting up the all this pollution uh uh uh bans 13:05 13 minutes, 5 seconds now we are hoping that this particular sales will come in the coming quarter which was slightly halted in the uh uh Q3. 13:16 13 minutes, 16 seconds So combined H2 will you land up growing 20% to whatever is is it a lost sales in quarter three or in your opinion it's a 13:25 13 minutes, 25 seconds postponed sales of quarter three to quarter four? 13:29 13 minutes, 29 seconds uh it it is combined of both the there would be a uh shift there is uh shift of the sales from Q3 to Q4 more 13:38 13 minutes, 38 seconds particularly in the northern part of the India most of the India is growing giving us a sale at a same pace what we 13:46 13 minutes, 46 seconds have projected but of course the northern sale what we have uh were unable to achieve in the Q3 will be 13:53 13 minutes, 53 seconds resulted in will give the result in the Q4 so it's a postpone Yes. Yes. 14:01 14 minutes, 1 second Can you just share one number? How much did north decline for you in in quarter 3 so that we can correlate with uh can 14:10 14 minutes, 10 seconds correlate the math that 25% of the business because of these restrictions decline how much? 14:17 14 minutes, 17 seconds So uh if you if you presentation my 14:24 14 minutes, 24 seconds has been around uh% which uh 14:32 14 minutes, 32 seconds to sir your voice is breaking in between yeah so if you see my presentation then 14:38 14 minutes, 38 seconds north India sales is contributing 22.4% in Q3 uh South India sales has grown up 14:46 14 minutes, 46 seconds 42.2% 2%. Had this construction ban was not there, we would uh we uh we would 14:53 14 minutes, 53 seconds anticipate this would be some around 27 28% on the overall sales basis. Of course, the sales which has been compens 15:01 15 minutes, 1 second which has not been generated from the north India is being uh compensated by the southern part operations. 15:09 15 minutes, 9 seconds uh if you ask me uh I can give you the broad range of close to 5 to 10% of the sales which we generally expect from the 15:18 15 minutes, 18 seconds north India has not given us the sales and this could be the postponement into the next quarter of FI26 15:27 15 minutes, 27 seconds to 10% of the sales so what is reported as 17% revenue growth would have actually been plus 17% basically 15:37 15 minutes, 37 seconds I'm talking 8 to 10% of the North India sales. Okay. 15:45 15 minutes, 45 seconds Okay. So about 2 and a half. Okay. Done. I'll come back if I have more question. 15:49 15 minutes, 49 seconds So H2 should it be uh should it be your growth should be closer to what is your assessment of the industry which is 18 15:58 15 minutes, 58 seconds 20% growth. H2 put together should be that number or that's an optimistic number. 16:04 16 minutes, 4 seconds No pet I think uh hopefully we should be there. uh be honest we are a bottom line driven company and uh we will also focus 16:12 16 minutes, 12 seconds on the top line and uh for the bottom line we are we are pretty confident to uh hopefully see the buyer 16:22 16 minutes, 22 seconds okay thank you sir thank you thank you the next question is from the line of Atul Maha from Motil Oswal asset 16:31 16 minutes, 31 seconds management please go ahead yeah thanks for this uh just to take the previous question ahead. So basically 16:39 16 minutes, 39 seconds what we are seeing is given the issue is not there is a little bit of postponement of sales to Q4. So with 16:46 16 minutes, 46 seconds that logic basically if your growth is 18 to 20% at the industry level and if you add the loss of sales in the current 16:54 16 minutes, 54 seconds quarter then the next quarter you should be growing topline by over 30%. Right? 17:00 17 minutes So uh so can you explain uh what is the current trajectory that you're seeing in Q4 and uh whether this you know 17:09 17 minutes, 9 seconds mathematics that we talk about uh we can look forward to that in Q4. 17:17 17 minutes, 17 seconds Uh thank you Atul. So uh we feel that uh as you said uh I think we are on the 17:23 17 minutes, 23 seconds same growth trajectory and uh I think 25% uh is the minimum that we are targeting 17:31 17 minutes, 31 seconds for the Q4 uh Y on Y. Also uh the sales in this quarter is uh picking up and as 17:38 17 minutes, 38 seconds as as what Mr. Sal said there is a little bit postponement uh of the north India which is now almost streamlined 17:45 17 minutes, 45 seconds and uh that is the sales that we are we are uh planning for uh we we hope to achieve in uh the Q4. 17:53 17 minutes, 53 seconds I wanted to add over here uh if you consider on a overall yearly basis yearly basis we have suffered a loss in 18:01 18 minutes, 1 second the quarter 1 of FI26 because of the fire. Okay. But how considering having said that considering the loss of sales 18:09 18 minutes, 9 seconds which has happened in quarter 1 of FI26 still we will be we are hopeful that we 18:16 18 minutes, 16 seconds will grow in terms of the sales uh as compared to the FI25 numbers. 18:24 18 minutes, 24 seconds And uh secondly given you have the M&A consolidation also happening. So if you look at total growth for Q4 if you have 18:32 18 minutes, 32 seconds 25% plus organic growth and then you also have the contribution coming from M&A then the total sales growth can be upward to 30%. 18:43 18 minutes, 43 seconds uh at I want to commit at around 25% and uh I uh hopefully we'll be able to uh do 18:50 18 minutes, 50 seconds much more with that model. there can be in terms of uh thought process on M&A going forward 18:58 18 minutes, 58 seconds which you can highlight you know you have obviously made an acquisition um and which will get consolidated u which 19:05 19 minutes, 5 seconds started to get consolidated already but what is the medium-term thought process you have on M& 19:12 19 minutes, 12 seconds so yeah uh our uh intention is to for maybe forward integration and similar premium products uh in the interior 19:21 19 minutes, 21 seconds segment and uh we our talks are on with a few companies. Uh hopefully we will have some positive news on that side as well. 19:30 19 minutes, 30 seconds Got it. And uh on more from a two to three year perspective in terms of growth. So given the industry is 19:38 19 minutes, 38 seconds expected to grow at 18%. If you were to think about three-year growth, what is the kind of growth that we can expect say from 3 years from now? Organic? 19:50 19 minutes, 50 seconds uh I think uh we should be we should be better than the industry average. I 19:58 19 minutes, 58 seconds can't quote a number as of now but uh we are hopeful to grow uh in spite of the fire if you see where the first quarter we had a lot of uh loss this year still 20:07 20 minutes, 7 seconds I think there is a growth of around 12 to 15%. till for the 9 months uh over the year I think uh it it should be 20:14 20 minutes, 14 seconds better and uh in the next three years we are hopeful to uh do much better than the market growth. 20:21 20 minutes, 21 seconds Got it. All right. Thank you. I'll come back. 20:26 20 minutes, 26 seconds Thank you. Participants who wish to ask a question may press star and one at this time. The next question is from the 20:33 20 minutes, 33 seconds line of Boricha from Sequent investments. Please go ahead. So MPA has indicated it to meet for the Indian CEO Indian carriers. 20:45 20 minutes, 45 seconds Hello. Am I audible sir? Yeah. 20:49 20 minutes, 49 seconds Yeah. Uh good morning sir and thanks for the opportunity. So my first question is on the margin. We saw a very good 20:56 20 minutes, 56 seconds improvement in the margin of around 600 bits. So if you can share some lever on that and also is this kind of margin 21:03 21 minutes, 3 seconds sustainable as you have given 25% crew guidance in Q4. So what kind of margins we are looking in Q4? 21:12 21 minutes, 12 seconds So uh if you see the history of the company uh we are always a bottomline driven company uh asset line model and 21:19 21 minutes, 19 seconds new innovation uh new innovative products where we where we work with handsome margins. Uh it is not a one-off case. It's been consistent for over last 21:27 21 minutes, 27 seconds 5 years and we hope to continue to uh deliver the same same way in the in the future as well. 21:36 21 minutes, 36 seconds So so this 40% margin will also come in Q4. 21:42 21 minutes, 42 seconds Uh I can't give a number but uh hopefully we we will be able to uh get good budgets. 21:49 21 minutes, 49 seconds Okay. Okay. Yes sir. Yes sir. 21:55 21 minutes, 55 seconds Yeah, if you see last 3 four years that is the figure that approximately we are working with. 22:03 22 minutes, 3 seconds Understood. Understood. And so my second question is on the ban you mentioned to one of my colleague that there was a ban in north. So that is that ban lifted? 22:14 22 minutes, 14 seconds Yeah. Yeah. Yeah. uh I think uh like two weeks back now there is there are no restrictions and uh they they had a grab 22:21 22 minutes, 21 seconds four where the entire construction interior exterior was at a hold now it has been lifted and business is now as usual 22:30 22 minutes, 30 seconds okay and one last clarification question you mentioned 25% growth in Q4 is 22:36 22 minutes, 36 seconds including the acquisition right yeah hopefully yeah include on our 22:44 22 minutes, 44 seconds growth basis Okay, I'll get back in the quer. Thank you. 22:51 22 minutes, 51 seconds Thank you. The next question is from the line of love Gupta from CounterCycle Investments. Please go ahead. 23:00 23 minutes Uh uh sorry to interrupt you Mr. Gupta. 23:09 23 minutes, 9 seconds Your voice is not clear. Can you hear me now? 23:16 23 minutes, 16 seconds Yeah. Hello. Yeah. Can you hear me now? Yes. 23:21 23 minutes, 21 seconds Yeah. So, uh I just wanted to understand who are your key competitors? 23:29 23 minutes, 29 seconds Uh in the wall panel segment. 23:32 23 minutes, 32 seconds Yeah. In the wall panel and the floated panel segment. 23:38 23 minutes, 38 seconds Yeah. So uh in a in a like we we uh as per the technopac report we hold around 16% of the market share. Uh remaining 23:47 23 minutes, 47 seconds market is uh like fragmented uh regional uh there are a lot of players maybe hundreds of them but they are small they 23:56 23 minutes, 56 seconds do one or two three products. Uh we have a basket of more than 30 products and 3,000 SKUs. Also this market is uh is 24:04 24 minutes, 4 seconds quite new. uh you can say it has been expanding from the year 201819 and postco it uh got really uh uh this trend 24:14 24 minutes, 14 seconds really caught up in the market because of quick installation. So uh the there are very small regional players uh which 24:21 24 minutes, 21 seconds would be doing maybe 50 60 70 crores uh uh top line. 24:27 24 minutes, 27 seconds Uh and uh I can add in terms of the competitors there are mystic panels and there are 24:38 24 minutes, 38 seconds these are the players who are uh you can classified as a uh competitors. 24:45 24 minutes, 45 seconds Uh so do you consider Daria Polywood as your competitor? 24:50 24 minutes, 50 seconds Yeah, they are into manufacturing. Uh I don't know their sales model. Maybe they are they are supplying to some 24:58 24 minutes, 58 seconds importers or some some channel partners but they just have one of the product which we do. So as I said we have 30 25:06 25 minutes, 6 seconds products more than around 40 contract manufacturers. So one product is similar to dabarya uh remaining products uh they they are not doing. 25:16 25 minutes, 16 seconds Okay. And uh one second question would be do you use uh other PVC profile fabricators as your distributions in your distribution channel? 25:27 25 minutes, 27 seconds No mainly our distribution channel are focused into wall panels. Uh they stock our products and they supply to their dealers and architects contractors. 25:36 25 minutes, 36 seconds All right sir. Thank you so much. 25:40 25 minutes, 40 seconds Thank you. Anyone who wish to ask question may press star and one. Now the next question is from the line of Rudi Vora from SAS Capital. Please go ahead. 25:52 25 minutes, 52 seconds Hello. Am I audible? Yes. Yeah. 25:57 25 minutes, 57 seconds Wow. So my question is that the distributive count has grown from 97 and FY23 to appro 190 by December 2025. So 26:07 26 minutes, 7 seconds like what is your target for FY27 and how do you plan to sustain the space? 26:15 26 minutes, 15 seconds You mean the number of distributors? Yeah. 26:19 26 minutes, 19 seconds Yeah. So our internal target is to grow at least uh 12 to 15% more uh channel partners every year and uh India is now very very like a diverse country. 26:30 26 minutes, 30 seconds Earlier majority of the sales used to come from the metros. uh now the strategy has moved to uh uh target rural 26:38 26 minutes, 38 seconds market uh BC cities, CC cities. So there is purchasing power and uh how uh development infrastructure development 26:46 26 minutes, 46 seconds happening all across India. So we hope to uh grow this distribution network in the in the coming years. 26:54 26 minutes, 54 seconds Okay. Okay. And further like we know that Europatik and Gloria operating is independently. So how do you balance the channel strategy between the two brands? 27:05 27 minutes, 5 seconds So uh we we work in the market with uh uh dual brand uh Glorio and Europratik both have their individual office 27:12 27 minutes, 12 seconds warehouse sales team distribution network is uh completely different. Uh we don't uh in a way we don't we compete 27:22 27 minutes, 22 seconds with each other but the channel and everything is completely separate. So uh we get uh better uh product awareness 27:29 27 minutes, 29 seconds and uh better distribution when we we are doing it with uh both the brands. 27:34 27 minutes, 34 seconds Okay. Okay. Further like we operate in a fixed asset light model with 36 plus contract manufacturers. So how do we how 27:44 27 minutes, 44 seconds do we mitigate the supply chain risk in such a diversified setup? 27:49 27 minutes, 49 seconds So uh most of our running products we have more than two three contract manufacturers. So we are not dependent on any single contract manufacturer. 27:57 27 minutes, 57 seconds Also I would like to add here is uh the designs development everything is done inhouse. Uh R&D and uh everything is uh 28:05 28 minutes, 5 seconds done at our end and we choose the contract manufacturer and we give them the designs and we just ask them to 28:11 28 minutes, 11 seconds execute uh the uh designs and load the material to us. None of our contract manufacturers keep any inventory. they 28:20 28 minutes, 20 seconds they make the order once we give them the uh the designs and the quantity from our end. 28:27 28 minutes, 27 seconds Okay. Okay. Thank you so much and all the best for the future. 28:33 28 minutes, 33 seconds Thank you. The next question is from the line of Pratik Sha from Investing Alpha. Please go ahead. 28:40 28 minutes, 40 seconds Hello. Yeah. Hi sir. Good afternoon. Uh so my first question is on the AIA margins. So I beta margins are expanded 28:48 28 minutes, 48 seconds uh 40 to 43% this quarter versus 36.5% year-over-year last year. So how 28:56 28 minutes, 56 seconds sustainable is this margin profile going forward? 29:01 29 minutes, 1 second So uh we want to remain in the the bracket of around 40%. uh plus minus 2 29:08 29 minutes, 8 seconds 3% uh that's the endeavor of the company and that has been consistent over the years last couple of years you can see 29:15 29 minutes, 15 seconds it it has been consistent okay so 40% uh would be the area right we we hope to uh be on that track 29:25 29 minutes, 25 seconds okay so the another question is uh you acquire 51% in Euro winner world in December 25 so what synergies have you 29:33 29 minutes, 33 seconds unlocked so far like particularly in south India I didn't understand your question. 29:40 29 minutes, 40 seconds So we have recently acquired 51% Euro winner world in December 25. So what synergies have we unlocked so far in you know particular regions of South India? 29:51 29 minutes, 51 seconds Yeah. So synergy is uh like most of our business is currently uh B2B uh 29:58 29 minutes, 58 seconds Eurovvenia world is more than 25 year old uh company which is based out of South India which are dealing with more 30:05 30 minutes, 5 seconds than 2,000 architects contractors uh in in southern part of the country. So uh it's a front- end uh retail uh pure 30:14 30 minutes, 14 seconds retail business where we have a better understanding of the market requirement uh also uh the trends which are uh going 30:22 30 minutes, 22 seconds on in the market. Also we are we have been able to uh our non-core products we have been able to uh find better uh 30:30 30 minutes, 30 seconds supplier in terms of quality designs at a better price for Eurovven world. So we hope to grow that business uh based out of South India. 30:41 30 minutes, 41 seconds All right, sir. Thank you. That's it from myself. Thanks. 30:45 30 minutes, 45 seconds Thank you. The next question is from the line of Dewanchi Sha from HUF Capital. Please go ahead. 30:56 30 minutes, 56 seconds Dwanchi, you can go ahead. 31:01 31 minutes, 1 second Uh sir, there's no response from the participants and shall we move to the next question? 31:07 31 minutes, 7 seconds Yes, sure. The next question is from the line of Rajiv Jen from Arcane Investments. 31:14 31 minutes, 14 seconds Please go ahead. 31:18 31 minutes, 18 seconds Yeah, hello. Am I audible? Yeah. 31:25 31 minutes, 25 seconds Yeah. Yeah. Um, thank you for the opportunity. Uh, so I just have couple of question. Uh so uh starting off with 31:33 31 minutes, 33 seconds uh what percentage of sales currently come from repeat customers uh versus the new acquisition and how do you see this 31:41 31 minutes, 41 seconds mix evolving over the period of time? If you could shed some light on that so as I as I mentioned earlier most of 31:48 31 minutes, 48 seconds our business is B2B uh India is a very diverse and a diverse country where we don't know when the goods are going to 31:55 31 minutes, 55 seconds Punjab whom is who is buying it. So uh for us uh the the regular business is through our distributors which are above 32:03 32 minutes, 3 seconds 185 uh all over the country. Uh also uh the designers, architects they are well well aware of the product and they are 32:12 32 minutes, 12 seconds using it maybe in small or big quantities as per their requirement. Understood. 32:20 32 minutes, 20 seconds uh are there any acquisition opportunities that you are actively valuing uh for 26 32:28 32 minutes, 28 seconds oh that you might uh sorry to interrupt you Rajie your voice is breaking I I I understood the question I 32:36 32 minutes, 36 seconds understood the question yeah so acquisition as I said over the last two years we have done several acquisitions and uh we are looking at uh more 32:44 32 minutes, 44 seconds opportunities uh uh we are we are considering evaluating a lot of opportunities currently. Hopefully we will have something uh in the coming months. 32:54 32 minutes, 54 seconds Fantastic uh 1 lakh 84,000 square ft of warehouse 33:02 33 minutes, 2 seconds space across different cities that we have. So uh what is the utilization rate today? Uh and you see the need for further expand. 33:14 33 minutes, 14 seconds So around 80% is the utilization as on today and whenever we need more space it is readily available. So there is no 33:22 33 minutes, 22 seconds challenge in terms of expanding the warehousing space. 33:27 33 minutes, 27 seconds Understood sir. Um all right that's that's all from my friend. Thank you for answering my question. Thank you. All the best for the future. 33:36 33 minutes, 36 seconds Thank you. 33:37 33 minutes, 37 seconds Thank you. Anyone who wishes to ask a question may press star and one. The next question is from the line of Asim from Dan Capitals. Please go ahead. 33:49 33 minutes, 49 seconds Yeah. Hi team. Uh good afternoon. So just one question on this new joint venture that you have incorporated plycore. Can you talk about what the 33:57 33 minutes, 57 seconds overall plan year is and how it fits in your overall Europa ecosystem. 34:03 34 minutes, 3 seconds So uh as I said it's a it's a retail chain where you applied a hydra. 34:10 34 minutes, 10 seconds Oh you mean uh oh that yeah the new one that you announced. 34:14 34 minutes, 14 seconds Yeah the hydra joint venture with another gentleman. Yeah. 34:18 34 minutes, 18 seconds Yeah. Yeah. So there we are uh we are planning to do some products uh for catering mainly south south India uh 34:25 34 minutes, 25 seconds acrylics or uh Assa products they have a proper warehouse they are also a more than 20 year old firm based 34:33 34 minutes, 33 seconds out of Hyderabad and with a distri dealer network of more than thousand dealers. So we have done a joint venture where we plan to do around uh 300 400 SQUs uh in the next one year. 34:47 34 minutes, 47 seconds So uh is that overlap? The the idea is uh our uh our main strength our core strength is uh sourcing and designing which we bring to the table. 34:58 34 minutes, 58 seconds Uh we will uh we will try to encach their distribution network based out of uh their legacy their distribution 35:05 35 minutes, 5 seconds network and uh that's how the joint venture is uh we we hope that it's win-win for both sides. 35:13 35 minutes, 13 seconds Okay. So but uh this uh other company will has a different product profile. 35:18 35 minutes, 18 seconds You guys have a different product profile but you'll leverage the channel uh that's the broad strategy right so you can expand more in that market or maybe the south market. 35:28 35 minutes, 28 seconds Yeah exactly that is what the plan is. 35:30 35 minutes, 30 seconds Okay. Okay. And any financial commitment for this joint venture or is too early days on that? 35:37 35 minutes, 37 seconds So uh we we plan to start this uh by Q1 next year. uh we we have put a upper 35:45 35 minutes, 45 seconds limit of around uh 8 to 10 crores but I think it would be done uh uh lesser than that initially it should be around uh 35:53 35 minutes, 53 seconds total investment should be around 2 crores from the company side uh plus minus 10 15%. 36:01 36 minutes, 1 second Got it. Got it. Okay. Thanks and wish you all the best. Thank you. 36:07 36 minutes, 7 seconds Thank you. The next question is from the line of Dwanchi Sha from HF Capital. Please go ahead. 36:15 36 minutes, 15 seconds Hi, thank you for the opportunity. Um, so my first question is with partners spread across India, South Korea, China, 36:23 36 minutes, 23 seconds um, the US and Europe, how do you ensure quality consistency across geographies? 36:30 36 minutes, 30 seconds So, uh, we have a the KMP team is there of around 10 people. uh they regularly 36:37 36 minutes, 37 seconds visit our uh uh contract manufacturers also. These most of the contract manufacturers have been associated with us for uh the top have been associated 36:47 36 minutes, 47 seconds for more than 5 10 years. So there has been some consistency uh in terms of quality designing and everything. So uh 36:54 36 minutes, 54 seconds of late there has been absolutely no no major issues in terms of uh quality and everything which uh we have been uh doing over the years. 37:05 37 minutes, 5 seconds Got it. Sir Also, you've launched 113 cataloges in the last four years, averaging to two per month. So, how do 37:14 37 minutes, 14 seconds you prevent product cannibalization across such a wide portfolio? 37:28 37 minutes, 28 seconds new catalogs it is the fast fashion model which really follows. So the uh generally the products which are being 37:36 37 minutes, 36 seconds uh introduced in the market gets obsolete over a period of time maybe 15 to 18 to 20 months and that's why we 37:43 37 minutes, 43 seconds phased out the old cataloges and we launched with the new cataloges because this industry requirement itself to give 37:50 37 minutes, 50 seconds the new products to the industry architects interior designers needs new product every new and new fresh designs 37:58 37 minutes, 58 seconds is the requirement of the industry and that is in a A is our strength also because of our in-house research and R&D 38:06 38 minutes, 6 seconds team we will we are able to provide that and that is the uh uh real uh backbone or the intangible asset which the 38:14 38 minutes, 14 seconds company has and which contributes in terms of the healthy uh growth margins 38:24 38 minutes, 24 seconds also um regarding product categories which product categories are currently driving the highest growth momentum say wall panel, laminates or others. 38:35 38 minutes, 35 seconds Wall panel and laminates both if you see consistently are remaining into the same range and the in terms of the increase 38:43 38 minutes, 43 seconds sales and turnover this is contributing equally. Broad range is 65% contribution 38:50 38 minutes, 50 seconds comes from the wall panel segments and this has remained consistent over quarters last 8 to 10 quarters if you 38:58 38 minutes, 58 seconds see this has remained constant and laminates again we are not into the uh lower segment of the laminates these are 39:06 39 minutes, 6 seconds the premium high-end laminates which complement with the wall panels and our intention is always to give the complete 39:14 39 minutes, 14 seconds solution to the interior designer and the end customers and that's that's why we uh both this product complement with each other and that is the strategy with which we are going forward. 39:26 39 minutes, 26 seconds Got it sir that answers my question. Thank you and all the best. Thank you. 39:31 39 minutes, 31 seconds Thank you. The next question is from the line of Rushies Sha from Alchemy Capital. Please go ahead. 39:39 39 minutes, 39 seconds Hello. Hello. Am I audible? Yeah. 39:44 39 minutes, 44 seconds Yeah. Hi. Uh so the clarification I did the 25% growth guidance for Q4 is it 39:51 39 minutes, 51 seconds including acquisition or is it excluding acquisition? 39:56 39 minutes, 56 seconds Yeah, this would be on a overall basis as Pratik rightly said that uh we are sourcing certain uh uh sales for our 40:05 40 minutes, 5 seconds acquisition for our acquired entity Euro Vineyard world. So in terms of the uh consolidations uh as per accounting standards this inter interunit sales gets eliminated. 40:17 40 minutes, 17 seconds So we although we get the value added margin uh because it's a B2C model and we are a B2B model. So on overall basis there would be a growth of 25%. 40:29 40 minutes, 29 seconds Okay then see if you remove Eurovven India then the B business itself I don't think there is such high growth in that 40:37 40 minutes, 37 seconds part of the business it would be the same 14% growth for the 9 months that you might have done so what is it reason 40:46 40 minutes, 46 seconds is there some other thing also that is leading to lower growth so uh see as what Mr. Al said uh we do a 40:57 40 minutes, 57 seconds lot of sourcing for uh our uh channel for the acquisition as well uh including uh Glorio and now the Eurovvenia world. 41:05 41 minutes, 5 seconds So u you can say that uh these uh these sales come as as the intercomp sales get 41:12 41 minutes, 12 seconds eliminated uh the the sourcing is done directly from the supplier to the uh our our acquired entity. So that is the 41:21 41 minutes, 21 seconds reason that uh you can you can see that uh in organic there is a little bit of it in terms of sales but it's more than made up with the the acquisition sales. 41:32 41 minutes, 32 seconds Here I wanted to add one important point Euro world is providing me a good platform to connect to the retailers. So 41:40 41 minutes, 40 seconds I understand their customer needs and demands and I directly even pro the course for Europe world. So I am being 41:49 41 minutes, 49 seconds selling the goods on the Euro one platform and technically that is my organic growth because the basket needs 41:57 41 minutes, 57 seconds to be increased that was a which we have thought we which uh we have uh uh uh reviewed over a period of time and the 42:06 42 minutes, 6 seconds way the company has grown historically also to increase the product basket starting from a one startup just back 42:14 42 minutes, 14 seconds and now we are offering products to this Euro media mult platform provide gives us that opportunity and that if we are 42:22 42 minutes, 22 seconds introducing any new product for the uh Eurovvenia world platform that in in a way it's a it's a organic growth we are 42:29 42 minutes, 29 seconds what we are using is a platform if of a Euro okay understood thanks 42:39 42 minutes, 39 seconds thank you the next question is from the line of Atul Mahara from Motilwal Asset Management please go ahead 42:48 42 minutes, 48 seconds Just to uh clarify again on the same point. So last year your quarter 4 revenue was 73 crores. Is that right? 42:58 42 minutes, 58 seconds Yeah. 42:59 42 minutes, 59 seconds So if you assume that there is nothing in terms of the addition that you're doing in terms of M&A, what is the growth that you expect in Q4 43:08 43 minutes, 8 seconds on a standalone basis not including M&A? 43:14 43 minutes, 14 seconds So in terms of the Q4 uh what uh on an overall basis uh we we 43:22 43 minutes, 22 seconds excuse me sorry not overall basis if you assume there is no M&A that you have done currently 73 crores business should 43:30 43 minutes, 30 seconds grow to what I so uh 43:35 43 minutes, 35 seconds I think it should be around 85 also uh when when we when we sell to euro inner 43:42 43 minutes, 42 seconds it gets or or that is not the point. Point point is 43:50 43 minutes, 50 seconds so uh my point is when we sell to them it gets eliminated in the inter company sales. So uh hope you're understanding 43:57 43 minutes, 57 seconds what I'm trying to say. So what I'm saying is that is a second conversation. That is what I'm saying. 44:03 44 minutes, 3 seconds Assuming that you had not made the acquisition what would be the growth that you have in your business? 44:09 44 minutes, 9 seconds Yeah. So obviously if if the acquisition wouldn't have been there and those sales would have uh been in euro europratik itself. So uh obviously then the growth 44:18 44 minutes, 18 seconds in the company would be much uh much higher and I wanted to add over what what I have replied to the Krish also is that 44:27 44 minutes, 27 seconds the European world is providing me the platform. So any incre incremental sales in European world through the effort of 44:35 44 minutes, 35 seconds europratic sales again it's a sales which you can classify as a organic organic sales for visa is a europratic 44:43 44 minutes, 43 seconds because I'm using that particular platform the products which we are not we were not dealing in p in the past and 44:51 44 minutes, 51 seconds if I'm that procuring and using the eurogener world's platform to sell this particular product so indirectly that's 44:58 44 minutes, 58 seconds the organic growth so what pratik is trying to say on a strict parallel if you've asked me what is the one bucket of standalone europratic there would be 45:06 45 minutes, 6 seconds a one sales there would be a second bucket where in Europe world platform is being used and the europratic is making 45:15 45 minutes, 15 seconds an effort to increase the sales ultimately that's a europratic sales because uh now it's a hold as on a 45:23 45 minutes, 23 seconds consolidated basis and then there is a third thing where in the eurine world is procuring the goods from the other suppliers and there is a sale. So these 45:31 45 minutes, 31 seconds are the three different buckets and on a consolidation basis we are saying that okay this would be a 25% growth. However 45:38 45 minutes, 38 seconds having said that our uh strength lies into the designing sourcing and European 45:46 45 minutes, 46 seconds world's uh strength lies in the marketing of the goods. So this is the clear understanding between the two 45:53 45 minutes, 53 seconds parties that both the parties will work on that and Europe world uh sorry Europe sales will bring the additional products 46:01 46 minutes, 1 second on the platform of Europe world to expand the sales. 46:06 46 minutes, 6 seconds So basically if you convert this into profit right so last year you did 14 crores of net profit right and you did 46:12 46 minutes, 12 seconds about 17 crores of PBT. So given that you have these consolidations intersegment and so on and so forth uh 46:21 46 minutes, 21 seconds inter company alignment on a bottom line if you can uh suggest or how you would look like when it comes to people. 46:29 46 minutes, 29 seconds So as I said earlier, I think we we should be on target to grow at 25%. 46:37 46 minutes, 37 seconds Top line or bottom line? 46:40 46 minutes, 40 seconds Hopefully both bottom line for sure. Uh top line maybe couple of percentage here and there. 46:57 46 minutes, 57 seconds Thank you. 46:59 46 minutes, 59 seconds Thank you ladies and gentlemen. That was the last question. I would now like to hand the conference over to Miss Aayushi Gupta for closing comments. 47:09 47 minutes, 9 seconds I would like to thank the management for taking the time out for their conference call today and also thank all the participants. If you have any queries, 47:17 47 minutes, 17 seconds please feel free to contact us. We are MUNG in time private limited investor relation advisor for Europatraik sales 47:24 47 minutes, 24 seconds limited. Thank you so much on behalf of Europratik Sales Limited. 47:30 47 minutes, 30 seconds That concludes this conference. Thank you for joining us and you may now disconnect your