Eveready Industries India Ltd — Q4 FY26

Eveready Industries India Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=gc6XcZjj1zo Published: 13 days ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Ever Industries India Limited Q4 and FI26 conference call 0:09 9 seconds hosted by ad factors PR. As a reminder, all participant line will be in the listen only mode and there will be opportunity for you to ask question 0:17 17 seconds after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on 0:25 25 seconds your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Miss Anishi 0:32 32 seconds Sha from Fectors PR. Thank you and over to you Hanishi. 0:38 38 seconds Thank you Danish. Good evening everyone and welcome to Ever Ready Industries India Limited Q4 FI26 earnings 0:45 45 seconds conference call. Today we are joined by senior members of the management team including Mr. Anban Banerjee, Chief 0:53 53 seconds Executive Officer, Mr. Vive Adarval, executive director and chief financial officer and Mr. Anil Bang, GM Finance 1:01 1 minute, 1 second and Head of Industrial Relations. Before we commence, let me share a standard disclaimer. Some of the statements that may be made on today's conference call 1:09 1 minute, 9 seconds may be forward-looking in nature and the actual results could vary from those forward-looking statements. A detailed 1:17 1 minute, 17 seconds communication in this regard is available in the earnings presentation that has been circulated to you earlier and also available on the stock exchange website. I would now like to invite Mr. 1:28 1 minute, 28 seconds Banerjee to to share his perspective with you. Thank you and over to you sir. 1:36 1 minute, 36 seconds Thank you. 1:38 1 minute, 38 seconds Good evening everyone and thank you for joining us for Everett Industries's earnings call for the fourth quarter and full year FY26. 1:48 1 minute, 48 seconds I will focus my remarks today on the operating environment, our performance during the quarter and 1:55 1 minute, 55 seconds the full year, progress across our key business segments and commissioning of our Jamu manufacturing facility and our outlook for FY27. 2:10 2 minutes, 10 seconds So FY26 closed with a gradually improving demand environment supported by steady rural consumption and signs of 2:19 2 minutes, 19 seconds recovery in urban demand. Rural markets remained resilient through the year 2:26 2 minutes, 26 seconds aided by better agricultural cash flows and demand across essential categories. 2:33 2 minutes, 33 seconds Urban consumption also showed better momentum towards the latter part of the year particularly across valueled and 2:43 2 minutes, 43 seconds everyday use categories although discretionary spending remained selective. 2:50 2 minutes, 50 seconds The ongoing West Asia crisis remains a key monitorable but risk with risks of 2:57 2 minutes, 57 seconds higher crude linked inflation and supply chain disruption. 3:02 3 minutes, 2 seconds The commodity costs intensified during the second half of the year with zinc prices witnessing the steep and sustained increase. 3:14 3 minutes, 14 seconds Given zinc remains a critical input for the battery business. This created significant cost pressures across the 3:21 3 minutes, 21 seconds industry. We expect this trend to continue into the next quarter as well. 3:27 3 minutes, 27 seconds To navigate cost headwinds, we undertook calibrated pricing actions in carbon, 3:35 3 minutes, 35 seconds zinc and alkaline batteries while maintaining a disciplined approach towards cost control, procurement 3:43 3 minutes, 43 seconds efficiency and working capital management. 3:46 3 minutes, 46 seconds Our focus remained on protecting margins without disrupting market competitiveness. 3:53 3 minutes, 53 seconds Overall, we close FY26 with stronger visibility on demand recovery, improved operating discipline, 4:02 4 minutes, 2 seconds and strategic investments that position us well for FY27. 4:11 4 minutes, 11 seconds For FY26, we delivered a revenue growth of 8.2%. 4:17 4 minutes, 17 seconds along with AITA growth of 8.9%. 4:21 4 minutes, 21 seconds On a fullear basis, AIDA margin stood at 11.5%. 4:26 4 minutes, 26 seconds Reflecting discipline cost management, improved product mix and pricing interventions despite elevated commodity 4:35 4 minutes, 35 seconds cost pressures. The battery business continued to anchor overall performance and remain the primary growth driver for the company. 4:45 4 minutes, 45 seconds The battery segment delivered growth of 9.3% in FY26 supported by strong demand 4:53 4 minutes, 53 seconds across both alkaline and carbon ring categories. Our alkaline portfolio continued to perform well with alkaline 5:02 5 minutes, 2 seconds now accounting for nearly 10% of our battery business and continuing to deliver healthy volume growth. Consumer 5:11 5 minutes, 11 seconds preference for a high performance product. Rising usage of power intensive devices and premiumization trends 5:19 5 minutes, 19 seconds continue to shift support the shift. We had also launched lithium batteries 5:26 5 minutes, 26 seconds earlier in the year reinforcing alignment with these structural trends. 5:35 5 minutes, 35 seconds were increased during the year to partially offset the steep rise in zinc costs. 5:43 5 minutes, 43 seconds While pricing actions were necessary, our distribution strength and brand trust helped us maintain category stability and market position. 5:54 5 minutes, 54 seconds Mosquito rackets continue to scale up and now commands a leadership position within the segment in urban markets. 6:04 6 minutes, 4 seconds In flashlight segment, we delivered 3% growth for the full year. While the 6:12 6 minutes, 12 seconds traditional battery operated flashlight category remains relatively mature, rechargeable formats continue to gain 6:19 6 minutes, 19 seconds traction and remain a strategic focus area for us. During the year, we also expanded our adjacencies through new 6:28 6 minutes, 28 seconds product launches such as power banks and chargers, which are seeing encouraging initial traction and help strengthen our portable energy solutions portfolio. 6:41 6 minutes, 41 seconds The recent mandate of a BIS standard mark being made mandatory for the flashlight category augers well for us 6:50 6 minutes, 50 seconds as we expect higher traction towards quality compliant branded offerings like ours. 7:00 7 minutes The lighting business delivered growth of around 8.1% during FY26 supported by good volume growth across consumer lighting categories. 7:11 7 minutes, 11 seconds While pricing remained competitive in the LED segment, our focus on higher value SKUs, portfolio upgradation 7:21 7 minutes, 21 seconds and disciplined channel execution supported both growth and profitability. 7:28 7 minutes, 28 seconds Electrical accessories momentum remains encouraging as we expand our presence 7:37 7 minutes, 37 seconds increase penetration aided by our vast reach across the general trade channel. 7:44 7 minutes, 44 seconds A major highlight during the quarter was the commissioning of our Jamu manufacturing facility, 7:51 7 minutes, 51 seconds India's only operating alkaline battery facility. 7:58 7 minutes, 58 seconds This was inaugurated by Shri Mano Sa the honorable governor of the union territory of Jammu and Kashmir on 22nd April 20206. 8:11 8 minutes, 11 seconds This marks a significant strategic milestone for Everett and represents an important step forward in strengthening 8:19 8 minutes, 19 seconds our manufacturing self-reliance and expanding our premium portfolio with an investment of approximately 200 crores. 8:28 8 minutes, 28 seconds The facility has a peak capacity of up to 360 million alkaline batteries annually with 8:35 8 minutes, 35 seconds a phased ramp up planned over the coming years. 8:40 8 minutes, 40 seconds We expect production of more than 100 million units in the first year of operations. 8:46 8 minutes, 46 seconds The plant significantly enhances supply resilience as we transition from fully imported alkaline batteries to domestic 8:55 8 minutes, 55 seconds production over time. This is expected to improve cost efficiencies, 9:02 9 minutes, 2 seconds support margin expansion and strengthen our competitive competitiveness in the fast growing alkaline segment. In 9:11 9 minutes, 11 seconds addition to alkaline batteries, the Jamu facility will also support manufacturing lines for batteries, 9:21 9 minutes, 21 seconds flashlights and lighting products, creating stronger backward and forward integration across our portfolio. 9:31 9 minutes, 31 seconds Commercial production is expected to commence shortly in the next couple of weeks and we remain optimistic that this 9:38 9 minutes, 38 seconds facility will contribute meaningfully to growth margins and market share over FY27 and beyond. 9:50 9 minutes, 50 seconds Strengthening the balance sheet remained a key priority through FY26. 9:56 9 minutes, 56 seconds We continued to maintain disciplined working capital management despite elevated input cost pressures supported 10:04 10 minutes, 4 seconds by calibrated procurement, inventory optimization and tight cash flow control. 10:13 10 minutes, 13 seconds Debt reduction remains a clear priority having reduced debt by more than 100 cr 10:20 10 minutes, 20 seconds in the current fiscal year. Our objective remains to improve financial flexibility while funding strategic growth initiatives internally. 10:32 10 minutes, 32 seconds During the quarter, the company entered into two separate agreements for the sale and transfer of its leasehold 10:40 10 minutes, 40 seconds rights in respect of plot D1 and plot B2 located at its NOA plant. 10:49 10 minutes, 49 seconds On 30th March, the transfer of leasehold right including builtup structures and 10:57 10 minutes, 57 seconds attached fittings pertaining to plot B1 was formally completed. 11:05 11 minutes, 5 seconds As we move into FY27, we remain optimistic. 11:10 11 minutes, 10 seconds While commodity volatility particularly zinc prices may continue in the near term, the pricing actions 11:19 11 minutes, 19 seconds already undertaken combined with improving internal efficiencies provide confidence in our operating outlook. 11:28 11 minutes, 28 seconds We see FI27 as an important tier of optimization with the Jamu plant ramp up, stronger 11:36 11 minutes, 36 seconds alkaline penetration, premiumization across batteries and lighting and continued expansion in 11:44 11 minutes, 44 seconds nicencies such as mosquito rackets and power banks. Our broader focus remains clear. 11:52 11 minutes, 52 seconds sustainable growth, doubledigit operating margins, stronger manufacturing integration and disciplined capital allocation. 12:03 12 minutes, 3 seconds We believe the foundations built during FY26 position us strongly not just for FY27 12:11 12 minutes, 11 seconds but for the next phase of value creation. 12:14 12 minutes, 14 seconds To summarize, FY26 reflects steady execution across all our strategic priorities, 12:24 12 minutes, 24 seconds growth, consistency, margin discipline, manufacturing capability, and balance sheet strength. 12:32 12 minutes, 32 seconds We are confident that Emir is entering FY27 in a stronger position with better 12:40 12 minutes, 40 seconds operational readiness, greater strategic clarity, and improved long-term competitiveness. 12:50 12 minutes, 50 seconds With that, I will now hand over to the moderator to open the floor for questions. Thank you. 12:59 12 minutes, 59 seconds Thank you so much, sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. 13:09 13 minutes, 9 seconds 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 question. Ladies 13:18 13 minutes, 18 seconds and gentlemen, we'll wait for a moment while the question assembles. 13:40 13 minutes, 40 seconds Reminder to all the participant if you wish to ask a question may we press star and one. Thank you. 13:50 13 minutes, 50 seconds Our first question comes from the line of Rabi Kapoor from a security. Please go ahead. 13:57 13 minutes, 57 seconds Hi. Hi sir. Thank you for the introdu. 14:04 14 minutes, 4 seconds I'm sorry but the participant has left the queue. We'll move forward to the next participant. Next question come from the line of sake Kapoor from Kapoor and company. Please go ahead. 14:14 14 minutes, 14 seconds Yeah, namaskar sir. Hope I'm audible. Yes sir, you are. 14:20 14 minutes, 20 seconds Yeah, thank thank you sir for the opening remark. I missed a bit of it. Uh but sir if you if you take the press 14:27 14 minutes, 27 seconds release part uh I think so Vive G you have uh mentioned that I just read out calibrated pricing action strong cost 14:35 14 minutes, 35 seconds governance supported by effective forex hedging and manufacturing footprint deficiencies helps mitigate cost headwind. So if you could just give us 14:44 14 minutes, 44 seconds some some more color how how well are we uh prepared with now rupee at closer to 14:51 14 minutes, 51 seconds 94 half 95 levels and crude prices hovering above $100 plus. Uh so uh uh 14:59 14 minutes, 59 seconds how how is our business model aligned and uh if you would just give how should the how should we look forward uh for 15:06 15 minutes, 6 seconds the AITA margins uh going ahead the trajectory. So uh thank you sake G. Uh 15:14 15 minutes, 14 seconds so first of all this comments are for the FY26. 15:17 15 minutes, 17 seconds So if you see during the current year also the dollar has a lot of volatility right. So starting from 80 ranges 15:24 15 minutes, 24 seconds between 83 to 91 plus. So we did an appropriate time of aging try to see that what are the opportunity possible. 15:31 15 minutes, 31 seconds So that is the part we did and our focus is that whenever we saw and in fact our positioning also you know during 15:38 15 minutes, 38 seconds the year zinc has moved from the 20% plus minus pricing has happened. So with our uh data and our procurement team has 15:47 15 minutes, 47 seconds been able to secure our positioning uh while the cost is of course the higher than last year but we are much better than the market position and the third 15:56 15 minutes, 56 seconds comes to the pricing action. Of course when the material price goes our sales marketing team and the business leadership team has initiated the 16:03 16 minutes, 3 seconds pricing. So wherever the price increases or the margin improvement is possible. 16:07 16 minutes, 7 seconds So all three action has been affected in the current FY26 which has helped us to deliver this financial result. Now with 16:14 16 minutes, 14 seconds respect to FI27 you know dollar has already shown a journey of 9495 but it 16:21 16 minutes, 21 seconds is very difficult to predict for the inh people that whether this will be a short-term and long term. We are keeping 16:27 16 minutes, 27 seconds a very close track of this development and try to see what impact could have in our product because crude is such a 16:35 16 minutes, 35 seconds product which is a across use for everybody. So if there are challenges we will take a calibrated call in future as 16:42 16 minutes, 42 seconds well but at this point of time we are very closely monitoring the delivery uh on the part of either on the forex part or in the gene prices. 16:52 16 minutes, 52 seconds Okay sir uh correct me here. Quarter one generally represents the the best quarter in terms of the the revenue or 17:00 17 minutes the probability or the quarter two just before the month quarter taking into account the blended uh H1 and H2 uh uh contribution to the bottom line. 17:11 17 minutes, 11 seconds Actually H1 gen sometime during the because of the festival there is fully plus minus but H1 is definitely a uh few 17:19 17 minutes, 19 seconds percentile better than the H2 in terms of the revenue. 17:23 17 minutes, 23 seconds Okay. and and this this year sir how what is our uh expectation in terms of I'm I'm just trying to understand what 17:31 17 minutes, 31 seconds what should be the AITA margin uh trajectory that we can anticipate on 11.5 what we posted for the previous 17:40 17 minutes, 40 seconds year and taking into account the wages that we are facing currently how confident are we that we will defend this number and also may look forward 17:48 17 minutes, 48 seconds for improving on the So the headwinds 17:59 17 minutes, 59 seconds are definitely strong and they are certainly more than 18:06 18 minutes, 6 seconds you know what we had taken on board last year. But given that 18:14 18 minutes, 14 seconds we delivered 11.5 with all the headwinds of last year. My 18:23 18 minutes, 23 seconds sense is that you know we should be able to hold around the same region. But yes these are turbulent times. 18:32 18 minutes, 32 seconds It is so some parts of it are in the unknown but going into the new year 18:40 18 minutes, 40 seconds we are looking towards maintaining similar kinds as last year. 18:47 18 minutes, 47 seconds Just a small part on the Jammu uh facility contribution. Now congratulations to the team for the 18:54 18 minutes, 54 seconds inauguration on 22nd of April. as as mentioned earlier by VIG also that we will be anticipating at at least 30% 19:03 19 minutes, 3 seconds utilization level to uh end the year and lot of preparation has been done for for some job work to also pertain to the 19:12 19 minutes, 12 seconds same so if you could just give us some color how this facility is going to contribute uh to the to the top line and 19:20 19 minutes, 20 seconds uh whether we will break even on the same and and the third question would be on the debt part I think So uh it it was 19:28 19 minutes, 28 seconds mentioned that we are looking forward for reducing the debt by further 100 cr. 19:32 19 minutes, 32 seconds So if you could just give us some color how are we going to glide uh this path towards the debt reduction exercise uh that would suffice. 19:47 19 minutes, 47 seconds See on the you know the setting up of the Jammu plant I think it 19:55 19 minutes, 55 seconds is a very strategic decision something that we had taken 20:01 20 minutes, 1 second almost about a year and a half back and the growth in the alkaline segment 20:10 20 minutes, 10 seconds within the batteries is clocking over 20% kaga in volume term. 20:19 20 minutes, 19 seconds And thus over the next you know 5 to 10 years the sense is that the alkaline segment 20:27 20 minutes, 27 seconds would easily become you know onethird of the overall battery segment in India. 20:36 20 minutes, 36 seconds Now with that it made immense sense to have a plant and thus you're moving from 20:44 20 minutes, 44 seconds importing batteries to now locally producing it and a completely made in India alkaline battery. 20:52 20 minutes, 52 seconds The very movement allows some amount of margin decompression 20:58 20 minutes, 58 seconds to happen. And as the plant starts improving in its overall 21:07 21 minutes, 7 seconds production and absorbs those overheads, the margins will continue to improve over the next few years. 21:21 21 minutes, 21 seconds So our sense is that you know from a break even point of view I think between 21:28 21 minutes, 28 seconds a five to 6 years should be an ideal 21:35 21 minutes, 35 seconds break even point for this plant going forward. 21:42 21 minutes, 42 seconds So I I'm sure you know uh Shak what when you s you know what an spoke here and give a 21:51 21 minutes, 51 seconds right perspective I think when you say break even it's talking about the payback of the plant but operational break even if you see in a 100 plus 21:59 21 minutes, 59 seconds millions of alkaline and plus as you know along with that we have also put up a alka carbon zinc plant so at the full 22:07 22 minutes, 7 seconds annualization basis also if you run I think year one on wwise the operating level will be a break even but the payback perspective definitely five to 22:15 22 minutes, 15 seconds six years and with respect to the debt reduction I think what we have mentioned in the current year we have done the 100 plus cr of debt reduction but if you ask 22:23 22 minutes, 23 seconds at our expiration we continue the journey of further debt reduction in the FY27 22:45 22 minutes, 45 seconds Okay, we'll move forward to the next participant and next before that I'll make an announcement. 22:51 22 minutes, 51 seconds Uh, anyone who wishes to ask a question may press star and one on their touchstone telephone. 23:01 23 minutes, 1 second Our next question come from the line of Manoj Rajani. 23:26 23 minutes, 26 seconds Man has left the queue. Our next question comes from the line of Bhargo Buddha from Ambbit Capital. Please go ahead. 23:34 23 minutes, 34 seconds Yeah, good evening team and uh congratulations on a good set of performance. Uh so my first question is 23:41 23 minutes, 41 seconds that uh now that the alkaline factory has got commissioned uh and maybe it will uh ramp up maybe in the next uh 6 23:49 23 minutes, 49 seconds to 9 months how should we look at uh sort of uh uh is it going to cannibalize 23:57 23 minutes, 57 seconds our uh carbon zinc sort of battery sales and if it does it's actually better given that uh physically the margins in 24:06 24 minutes, 6 seconds alkaline would be far better. So how should we look at the journey over the next two to three years uh in terms of 24:13 24 minutes, 13 seconds uh carbon zinc versus alkaline and uh second question is that now that the BS 24:20 24 minutes, 20 seconds has got rolled out on the flashlight uh segment uh how should we look at improvement in terms of market share 24:28 24 minutes, 28 seconds over there and also in terms of margins. 24:36 24 minutes, 36 seconds So uh the as I was mentioning earlier the alkaline segment within batteries is 24:45 24 minutes, 45 seconds definitely growing fast. I mean it's maintaining about a greater than 20% kagger on volume basis. 24:53 24 minutes, 53 seconds Sure. Now will till the time the salency of alkaline 25:00 25 minutes now but if you go back about three or four years back the overall salency of alkaline within the battery industry was in single digits. 25:11 25 minutes, 11 seconds Sure. And at that time while alkaline was growing aggressively it did not materially impact zinc carbon batteries. 25:25 25 minutes, 25 seconds But as we stand today over the last say 3 to four years today the salency of the alkaline batteries are close to about 25:33 25 minutes, 33 seconds 15% while the carbon zinc is at 85. And you ask the question that what would be the outlook 3 years from now. My sense is 25:42 25 minutes, 42 seconds anywhere between you know 20 to 25% towards alkaline and 75% of zinc will be how the category will reposition itself. 25:53 25 minutes, 53 seconds Now in a fundamentally high uh salency of alkali there will be some amount of 26:01 26 minutes, 1 second you know cannibalistic u position on the zinc batteries but uh 26:08 26 minutes, 8 seconds yes the alkalines are more premium to the zinc batteries. 26:16 26 minutes, 16 seconds Will you know will there be a value extraction and all etc. Yes, there will 26:22 26 minutes, 22 seconds be. And thus is alkaline something that is going to 26:29 26 minutes, 29 seconds be the future? Definitely. Because with India growing, you have a lot of you know new devices from blood pressure 26:37 26 minutes, 37 seconds machines to you know toys to smart remotes to optical mouse to you know 26:46 26 minutes, 46 seconds electric toothbrushes. Many devices whose penetrations are today you know 26:53 26 minutes, 53 seconds low single digits are bound to go up over the decade in terms of penetration 26:59 26 minutes, 59 seconds in India and they will require sustainable power which you know the 27:06 27 minutes, 6 seconds alkaline batteries seem to be positioned well. So thus yes alkaline salency will 27:13 27 minutes, 13 seconds go up. Some amount of compression in zinc is bound to happen but overall the 27:21 27 minutes, 21 seconds battery industry category value should look good and most of it would be fueled 27:28 27 minutes, 28 seconds in our sense from intense power consuming devices whose 27:35 27 minutes, 35 seconds penetration over the decade in India should also increase. 27:40 27 minutes, 40 seconds And so just one one thing on this front that uh is it fair to say that we may even take some price in carbon zinc uh 27:49 27 minutes, 49 seconds to sort of uh reduce the price difference uh between alkaline and carbon zinc. Obviously assuming that the 27:56 27 minutes, 56 seconds post the commissioning of the jumbo factory the alkaline pricing will become more and more competitive uh and lower compared to the current. uh so that 28:04 28 minutes, 4 seconds would incentivize the consumer to move towards alkaline given that the difference between carbon zinc and alkaline would be fairly low. 28:14 28 minutes, 14 seconds See that as we stand today the there is not a very significant difference 28:20 28 minutes, 20 seconds between carbon zinc and uh alkaline and if you go you know to countries 28:27 28 minutes, 27 seconds outside the alkaline is uh more uh there's a much stronger price gap between the zinc and the alkaline. 28:35 28 minutes, 35 seconds So basically from an Indian standpoint it is at a very sweet spot which is 28:42 28 minutes, 42 seconds done to ensure that India you know starts moving towards alkaline quickly 28:49 28 minutes, 49 seconds and uh so now that that being said let's 28:53 28 minutes, 53 seconds say the premium side of the uh zinc 29:00 29 minutes will be the aspiration for the alkaline segment. 29:05 29 minutes, 5 seconds But the price sensitive India at economy and popular side of the batteries will 29:12 29 minutes, 12 seconds still continue to hold forth for you know a long time to come. So it's all in the premium side where the interplay 29:19 29 minutes, 19 seconds between premium zinc and alkaline will happen. Oh understood. 29:24 29 minutes, 24 seconds You had asked another question on the BIS. Yes. Yeah. So our sense is that the BIS on flashlights 29:32 29 minutes, 32 seconds right got fully implemented by the end of January 2026. Yes. 29:39 29 minutes, 39 seconds Now over the next few months you know the as per the law etc everyone is needing to be fully compliant. Our sense 29:48 29 minutes, 48 seconds is that sometime in the second half of this year, the cost of compliance 29:57 29 minutes, 57 seconds for some of the unorganized players, you know, players who were 30:04 30 minutes, 4 seconds earlier simply importing it and selling it into the market will have to go up because, you know, you would need them 30:11 30 minutes, 11 seconds to either get SKD and, you know, assemble it here and it will also potentially have question marks on quality. 30:21 30 minutes, 21 seconds In a situation like that, we should be very well poised with the price cap 30:28 30 minutes, 28 seconds reducing and definitely superior quality. Our outlook on some of the rechargeable flashlights for the future 30:38 30 minutes, 38 seconds taking away from the unbranded sector looks to be quite positive. 30:45 30 minutes, 45 seconds And also the uh in the last 15 months u rupee has depreciated or weakened 30:52 30 minutes, 52 seconds against uh yuan by almost 15%. So that also basically impacts the Chinese imports. Is that understanding correct sir? 31:02 31 minutes, 2 seconds uniformly across uh all of us uh right but uniformly across but uh the way the flashlight market is structured is let's 31:11 31 minutes, 11 seconds say you know close to about 70% of the market is unbranded and very heavily 31:18 31 minutes, 18 seconds dependent on China so that entire space will be uniformly 31:24 31 minutes, 24 seconds you know getting either hit or you know so that's that is a constant for all of us. 31:33 31 minutes, 33 seconds But what's going to change the game is to be BIS compliant and even if yes 31:40 31 minutes, 40 seconds for a moment if let's say half of it is compliant with BIS some of the players 31:47 31 minutes, 47 seconds like us should make much better gains from the unbanded segment in the flash category. 31:55 31 minutes, 55 seconds Sure. Great sir. Thank you very much for your answers and all the very best. Thank you. Thank you so much. Thank you so much. 32:04 32 minutes, 4 seconds Our next question comes from the line of Vulcha from RV equity. Please go ahead. 32:10 32 minutes, 10 seconds Uh thank you sir for the opportunity. Uh am I audible sir? Yes. Yes you are. 32:18 32 minutes, 18 seconds Yes. Uh so thank you for this opportunity sir. So I had fundamentally two questions. Uh one is you know on the 32:26 32 minutes, 26 seconds uh provision for tax uh which uh you know we've uh read the note that the group uh has evaluated the option under 32:35 32 minutes, 35 seconds section 115 BA and intends to transition under once the benefits are uh sort of 32:43 32 minutes, 43 seconds uh fully utilized of section 80IE. So is the understanding correct that with regard to fiscal year 27 32:52 32 minutes, 52 seconds uh which is the coming financial year now uh we will transition to a 22% full tax now or is uh that going to be uh one year after uh this year sir. 33:04 33 minutes, 4 seconds No so your understanding is right for the FY27 we will be transitioning to the new regime. 33:10 33 minutes, 10 seconds Uh so uh uh just another clarity sir regarding tax is that uh uh since we've 33:17 33 minutes, 17 seconds already recorded a sale of uh 105 kores for the NOA land uh one portion of NIA 33:24 33 minutes, 24 seconds land uh uh uh you know and in the notes we in the provision we didn't see any uh provision for tax. So is he 33:32 33 minutes, 32 seconds understanding correct that you know whatever MAC balances we've had was used and hence there was no tax payable on this land sir. 33:41 33 minutes, 41 seconds So I think uh you know there are two part one during the current year we have taken a write off of around 500 cr of a 33:49 33 minutes, 49 seconds old provisions of ICD which has been given so that is has allowed us a business loss. So that is why in the 33:58 33 minutes, 58 seconds current financial year when you sell the asset so in the current financial year the capital gain can be sought off against the business losses. So that is 34:05 34 minutes, 5 seconds why there is no taxes we have not started utilizing our MAT. 34:12 34 minutes, 12 seconds Okay. Got it. So then sir uh maybe maybe after we finish the entire business loss and then subsequent year and now only 34:21 34 minutes, 21 seconds 25% of the math adjustment will be allowed coming forward. 34:27 34 minutes, 27 seconds So uh for the financial year 27 sir is it fair to assume that we should uh uh we should factor in this 22% as a 34:36 34 minutes, 36 seconds provision for tax normal uh in our uh estimates when we when we sort of model the numbers 34:44 34 minutes, 44 seconds subject to utilization of the carry forward business loss. 34:50 34 minutes, 50 seconds All right sir. So then probably we'll have to wait for the annual report to get more granularity on that. So my investor relation team if you need a 34:58 34 minutes, 58 seconds specific something which we are in the preview we can share with you we'll I I'll take this offline then with your investor relation team sir sir uh one question sir to the uh you know to Mr. 35:09 35 minutes, 9 seconds Banana you said you you mentioned that you know we uh this although you know there was a press release and we've mentioned that we've commercialized the 35:17 35 minutes, 17 seconds plant on 22nd of April uh but uh is it fair to assume that uh normal production of uh you know from this plant will only 35:26 35 minutes, 26 seconds happen in the uh second quarter from the second quarter of this year. 35:32 35 minutes, 32 seconds So I'm just checking. So we have just inaugurated the plant. We have not started commercial production. 35:37 35 minutes, 37 seconds Commercial production we have mentioned in the note in the few weeks it will happen. So it is not the second quarter just maybe in a week few weeks the 35:45 35 minutes, 45 seconds commercial production start and it will be in the current quarter only. 35:50 35 minutes, 50 seconds All all right sir. So that that explains this. So last uh question if I may sir you know on the earlier call also sir uh 35:57 35 minutes, 57 seconds you know there was a question which we which I had on the uh on the payment of uh you know remuneration or commission 36:06 36 minutes, 6 seconds uh to uh a non-executive non-independent director uh who has a promoter representative who has now sort of been 36:15 36 minutes, 15 seconds appointed as the ED of another promoter company. So is the understanding correct that going forward this uh amount 36:24 36 minutes, 24 seconds payable to that uh director will now uh stop. 36:29 36 minutes, 29 seconds So I I can't commit at this point of time at this point of time the payment is going on and this person is very extensively working with us at this 36:37 36 minutes, 37 seconds point of time and uh in future we'll let you know any development on that because you will come to know any changes on that. Yeah, because if he is appointed 36:45 36 minutes, 45 seconds as an executive director any other organization, sir, you know, then the question of time commitment will be there. But I take your point, sir. We'll 36:53 36 minutes, 53 seconds await your clarity on this issue. Thank you. Thank you so much. Thank you. 37:02 37 minutes, 2 seconds Ladies and gentlemen, anyone who wishes to ask a question may press star and one on the restaurant telephone. 37:10 37 minutes, 10 seconds Our next question come from the line of Manojni from Rajni family. Please go ahead. 37:17 37 minutes, 17 seconds Hello. Am I audible sir? No please carry on. Yeah sir just had couple of questions. 37:23 37 minutes, 23 seconds The first question is that uh the lighting actually reported good double digit uh quarter quarteron quarter number. So sir just wanted to be sure is this going to be sustainable for us? 37:36 37 minutes, 36 seconds Yeah man, if it looks to be sustainable ideally should be able to do better. 37:47 37 minutes, 47 seconds Hello. 37:50 37 minutes, 50 seconds Okay sir. So we can expect this to be sustainable right? Yes. Yes. 37:55 37 minutes, 55 seconds Okay sir. And this my second question is uh like you know your expectation for this revival in the urban demand. So will it get impacted due to this you know recent geopolitical sentiment? 38:08 38 minutes, 8 seconds Yeah, difficult to say. Currently 38:10 38 minutes, 10 seconds [clears throat] 38:11 38 minutes, 11 seconds the trends for the last couple of months has been some amount of urban revival. 38:18 38 minutes, 18 seconds If the situation carries on more than quarter one then 38:27 38 minutes, 27 seconds we could see challenges. else my sense is it should continue the way it did in the last one or two quarters. 38:38 38 minutes, 38 seconds Okay sir. Uh rest of the questions have been covered from others. So yeah I'll leave it here. Thank you so much sir for for the clarity. 38:46 38 minutes, 46 seconds Thank you mad. Thank you sir. Thank you. 38:51 38 minutes, 51 seconds Our next question come from the line of sit from Quest Investment Advisor Private Limited. Please go ahead. 38:57 38 minutes, 57 seconds Hi sir. Thanks for the opportunity. I have just one question. Do we have any tax incentive on this JNK plant 39:06 39 minutes, 6 seconds and if yes what are just can you give little color? 39:12 39 minutes, 12 seconds So there is a incentive but uh as of now our plant has not yet got any approval under the incentive scheme. So there are 39:20 39 minutes, 20 seconds some GST linked incentive there in the state but we are awaiting the approval. 39:24 39 minutes, 24 seconds So once we get what will be that can you give little more in depth you know I can explain you the scheme 39:32 39 minutes, 32 seconds but you know what will be the unless until I get that registered but this is a theoretical knowledge there is a good incentive for the Jammu there because 39:40 39 minutes, 40 seconds government want to promote Jammu and Kashmir and the industrial belt and we have not only gone for the incentive we are location things at the cost of 39:48 39 minutes, 48 seconds operation also to multiple factor while choosing this Jammu so we are working very closely with the Jamu government authorities and industrial 39:55 39 minutes, 55 seconds department the the moment we get any update on that we'll keep the investor updated 40:01 40 minutes, 1 second okay thank you thank you so much 40:10 40 minutes, 10 seconds ladies and gentlemen anyone who wishes to ask a question may press star and one 40:19 40 minutes, 19 seconds next question come from the line of Mahindra A from Invest Please go ahead. 40:24 40 minutes, 24 seconds Um my audio ma'am your voice is very low. Um is it better now? 40:34 40 minutes, 34 seconds Yes, please proceed. 40:44 40 minutes, 44 seconds Ma'am please proceeded with the question. I guess your voice is again. 40:48 40 minutes, 48 seconds Uh what's the target market share for the alkaline battery and dry cell? 41:01 41 minutes, 1 second We are currently holding about 16% market share 41:08 41 minutes, 8 seconds and about a year back it was less than 10%. 41:15 41 minutes, 15 seconds So we will continue to grow in that direction. Got it. 41:23 41 minutes, 23 seconds My sense is sometime you know exit of next year we should be looking at exiting with 20% share. 41:34 41 minutes, 34 seconds Got it. And uh my followup question would be like what the product and country are you going to target for Jamu 41:43 41 minutes, 43 seconds facilities and like you mentioned in your press release that you'll be expanding the business to witness serve 41:51 41 minutes, 51 seconds the domestic and various international market. 41:57 41 minutes, 57 seconds So the jumbo facility is today capable of producing alkaline batteries, zinc 42:03 42 minutes, 3 seconds batteries, flashlights and lighting products. 42:09 42 minutes, 9 seconds All of these will as we go ahead will be used for production and sales domestically. 42:21 42 minutes, 21 seconds From a futuristic point of view, it will be a great option to explore, 42:28 42 minutes, 28 seconds you know, white labeling of alkaline batteries for various markets across the world. And we're certainly going to p it 42:37 42 minutes, 37 seconds for it in this entire global realignment of trade 42:44 42 minutes, 44 seconds which puts this plant in a very uniquely unique place in India given it's the only alkaline plant. 42:52 42 minutes, 52 seconds Hope I've answered your question. 42:55 42 minutes, 55 seconds Got it. That was really helpful. Thank you. Thank you. 43:04 43 minutes, 4 seconds Our next question come from the line of Vipin Maha from ENK securities. Please go ahead. 43:10 43 minutes, 10 seconds Hello. Good evening sir. Uh sir I have couple of questions. First was you mentioned that uh is going for new product launches uh that are lined up. 43:22 43 minutes, 22 seconds Just throw some light on those sir. What kind of products are you targeting? Can you throw some light on that? 43:31 43 minutes, 31 seconds So we've already launched as I said we launched mosquito rackets about you know 43:39 43 minutes, 39 seconds a year and a half back and that has been scaling up rapidly. We've last year 43:46 43 minutes, 46 seconds launched mobile accessories mainly through the e-commerce channels and that is something that we will also 43:55 43 minutes, 55 seconds look at scaling up. At the same time, we've been premiumizing our portfolios. 44:02 44 minutes, 2 seconds So within the battery business while zinc is at the, you know, base level, 44:09 44 minutes, 9 seconds alkaline is much more premium to zinc and that is something that we are pushing hard. Sometime in the last 44:18 44 minutes, 18 seconds quarter, we had also launched lithium primary batteries. These are lithium double A and AAA batteries. 44:28 44 minutes, 28 seconds And if you use a pair of lithium batteries in your blood pressure machine, you may not need to change the batteries for close to 5 years. 44:40 44 minutes, 40 seconds A pair of these batteries is about 500 rupees. So it is as premium as it gets. 44:48 44 minutes, 48 seconds So, and even within our flashlight segments, we've been pushing hard on the 44:56 44 minutes, 56 seconds 500 rupee flashlights and about, right, which is the more premium segment in the 45:03 45 minutes, 3 seconds flashlight category. A combination of all of these, I think, is driving new as 45:10 45 minutes, 10 seconds well as driving NPDs within the core is what is propelling us today. Sure. 45:19 45 minutes, 19 seconds Secondly, sir, will there be uh some more price hikes invol involving your products in coming quarters? You know, what's your stance on that? 45:32 45 minutes, 32 seconds So we've as from a judicious price 45:39 45 minutes, 39 seconds point of view, you know, we look into inflationary price 45:46 45 minutes, 46 seconds increases in this category. 45:53 45 minutes, 53 seconds Over the last few months, we've already taken up our prices 46:02 46 minutes, 2 seconds in both various segments of zinc and alkaline. 46:10 46 minutes, 10 seconds Now as a category leader, you know, we are very clearly setting the path 46:18 46 minutes, 18 seconds for the category to take price increases and be sustainable. 46:30 46 minutes, 30 seconds Given the kind of cost pushes that we are seeing and especially the last month of cost ambiguity. 46:41 46 minutes, 41 seconds If this ambiguity continues over this quarter as well, 46:51 46 minutes, 51 seconds we may then need to look at the pricing again somewhere in quarter two. 47:02 47 minutes, 2 seconds Hope that answers your question. 47:06 47 minutes, 6 seconds Yes sir. Thank you so much. All the best to the management. Thank you. Thank you so much ladies and gentlemen. 47:15 47 minutes, 15 seconds Anyone who wishes to ask a question may press star and one on their touch telescope. 47:21 47 minutes, 21 seconds Reminder to all the participant in order to ask a question you may press star and one on your touch. Thank you. 47:29 47 minutes, 29 seconds Next question come from the line of sake Kapoor from Kapoor and company. Please proceed with the question. 47:35 47 minutes, 35 seconds Yeah. Thank you for the opportunity again. Hope I'm audible sir. Yes. Yes. Yes. 47:41 47 minutes, 41 seconds Yeah. Yeah. Thank Thank you, sir. Sir, firstly, if you could just give us some understanding of what kind of volume growth are we expecting uh in the 47:50 47 minutes, 50 seconds current uh year especially for our uh the batteries uh category and also how 47:57 47 minutes, 57 seconds will the flashlight and the lightning uh segment uh contribution to the total mix 48:05 48 minutes, 5 seconds uh will shape. Last year I think sir it was 12 and 23 for flashlights and lightning light lightning. So how will 48:13 48 minutes, 13 seconds the mix be for for the current year? 48:19 48 minutes, 19 seconds So from a volume uh standpoint, I think uh 48:25 48 minutes, 25 seconds the alkaline volumes has been you know trying to sort of doubling itself. 48:36 48 minutes, 36 seconds Whereas uh uh the zinc volumes are much more flatter and tid 48:46 48 minutes, 46 seconds but those differ from segment to segment in the zinc category. 48:54 48 minutes, 54 seconds And thus as alkaline grows, I was mentioning earlier that there will 49:01 49 minutes, 1 second be cannibalistic uh impacts on the volumes of zinc. 49:09 49 minutes, 9 seconds Now that being said, price increases 49:15 49 minutes, 15 seconds both in zinc and in alkaline 49:22 49 minutes, 22 seconds will be a part of the category evolution over the next couple of years. 49:31 49 minutes, 31 seconds So yes, volume drivers will remain to be the alkaline whereas 49:39 49 minutes, 39 seconds appreciation will potentially happen in both these segments. 49:46 49 minutes, 46 seconds As we speak today, our batteries continue to contribute about 49:53 49 minutes, 53 seconds twothird of the business. Whereas our flashlights and lighting and some of the other 50:01 50 minutes, 1 second associated egencies account for the balance one/ird of the business. 50:12 50 minutes, 12 seconds And sir in terms of the profitability part uh for the flashlight and the light lightning business what is our road map 50:20 50 minutes, 20 seconds towards improvement in uh in the in the margin and therefore thereby the contribution towards the bottom line 50:28 50 minutes, 28 seconds also and second point was sir as you have mentioned that the Jammu facility was conceived with the fact that uh we 50:35 50 minutes, 35 seconds will be having all verticals placed there as earlier uh spoken in the call also. So what kind of realignment of uh 50:45 50 minutes, 45 seconds uh facilities uh the bo uh the the the company may look forward uh going ahead. 50:51 50 minutes, 51 seconds If you could just give us some color or a thought process uh which the management might be working on. 51:00 51 minutes The jumbo facility comes in at a time when we are poised to grow and accelerate our alkaline portfolio. 51:12 51 minutes, 12 seconds So it definitely helps in you know better margin profiles for our alkaline batteries compared to what we were importing. 51:24 51 minutes, 24 seconds Will the plant also manufacture zinc and flashlights and lighting? Yes, it is fully poised for that. 51:35 51 minutes, 35 seconds In the last financial year, specifically over the last quarter, we've also been 51:41 51 minutes, 41 seconds in the process of optimizing our manufacturing units. 51:47 51 minutes, 47 seconds We've smoothly exited our NOA plant while having set up 51:55 51 minutes, 55 seconds a complete future ready alkaline the only alkaline plant in India in Jamu. So we are also 52:05 52 minutes, 5 seconds continuously in the process of optimizing our manufacturing facilities 52:12 52 minutes, 12 seconds and in that in that stride I think the Jamu plant's 52:19 52 minutes, 19 seconds capability to singly integrate all facets of our key products 52:26 52 minutes, 26 seconds makes it positioned very uniquely from a future optimizing and realignment in manufacturing. 52:40 52 minutes, 40 seconds Right sir? So uh any any more non-core asset sale that that we are 52:46 52 minutes, 46 seconds contemplating? Uh have have we have we shortlisted? Uh the same answer if you could give me the sales proceed 52:55 52 minutes, 55 seconds from the no land. How what what have the transaction being consummated at? I think the profit we are booked at 104 K. 53:04 53 minutes, 4 seconds So as we said that you know we have started our journey in the month of November last third second quarter board 53:12 53 minutes, 12 seconds meeting for the manufacturing realignment and as a part of that we have initiated the NOA closure. So as of now our all the plants are operational. 53:22 53 minutes, 22 seconds So once we get something chopped out for this definitely update with respect to this plant the sales proceeds is around 53:30 53 minutes, 30 seconds 116 cr rupees that plot which we have sold. 53:35 53 minutes, 35 seconds Okay so then 250 cr was the number sorry I I interrupted you sir you continue first. 53:46 53 minutes, 46 seconds Yeah. So so this is a 116 cr is the sale proceeds. there are some WDV of the existing leaseold right and the asset 53:53 53 minutes, 53 seconds plus there are some charges associated with that so net has been profit has been booked accordingly okay sir we we heard earlier in the uh 54:02 54 minutes, 2 seconds in your previous call that 250 cr was some ballpark number that the board has come out so how are we going to align 54:10 54 minutes, 10 seconds these numbers s 250 and this so as we are waiting for the plot B2 as an mentioned in his opening remark there 54:17 54 minutes, 17 seconds are two separate agreement has been entered So one first agreement transaction has been fully completed. We are waiting for the closure of the D2 plot completion. 54:28 54 minutes, 28 seconds Okay. Then we'll be realizing 150 K. Yeah. Yeah. Yeah. 54:32 54 minutes, 32 seconds Total 251 K. So this is this is around 116 K. Lad is around 136 K. 54:40 54 minutes, 40 seconds Okay. And and lastly sir uh I I'm just trying to make sense that uh taking into account the current considerations uh 54:49 54 minutes, 49 seconds and the segments where we operate what kind of uh totality because revenue growth is slightly different difficult to predict 54:57 54 minutes, 57 seconds today but going on a year-on-year basis uh and and taking into account the current uh business environment what 55:05 55 minutes, 5 seconds kind of growth should be positioning in uh as a ballpark for uh for the company as a whole especially from the from the battery segment because the 55:14 55 minutes, 14 seconds profitability aspect is much higher contribution is much higher from that. 55:17 55 minutes, 17 seconds So what should investors hope or anticipate uh uh in in that uh in that 55:24 55 minutes, 24 seconds terms sir? So Ky I think Nirvan has just now explained your point on the battery battery he has explained that 20% plus 55:33 55 minutes, 33 seconds the kagger of the category alkaline going on where zinc is going to be going to a volume flattish to a very low singledigit type of number that is with 55:42 55 minutes, 42 seconds respect to battery flashlight and lighting product volume may not reflect because there are very 55:50 55 minutes, 50 seconds varied price points are there right the product would be 300 rupees also product would be 50 rupees also. So in these two 55:58 55 minutes, 58 seconds products while we track the respective category wise value but overall volume growth may not generate a right picture because sometimes hello premiumization 56:06 56 minutes, 6 seconds may have happened with the lower volume turn also right sir and lastly on the expenses on 56:15 56 minutes, 15 seconds the expenses front also sir what portion are we mentioning in in terms of the and I think so now uh with the route to 56:24 56 minutes, 24 seconds market uh efficiency and the bane cap capital contribution are we are those uh cost efficiencies being aligned and have 56:32 56 minutes, 32 seconds passed through through the P&L or we will be uh witnessing more of the same going ahead 56:41 56 minutes, 41 seconds work has been finished I think it's more than almost two years so and today you could see the company which was almost flat for a decade now from a mid single 56:50 56 minutes, 50 seconds digit has come to a high single digit and if you see last two quarter growth also 9 to 10% type of growth we are clocking 56:57 56 minutes, 57 seconds So definitely the company is now in the next step of acceleration and that is why despite of lot of volatility lot of 57:06 57 minutes, 6 seconds uh turbulence in the market in terms of the commodity pricing we are we are staying ahead in the curve and we have 57:13 57 minutes, 13 seconds consistently delivered in all the front whether is a top line whether is a bottom line and the cash flow 57:20 57 minutes, 20 seconds right and last point on the borrowing front s when we will be uh consummating the next plot B part uh and and we will 57:29 57 minutes, 29 seconds be realizing the sales I think. So uh as per our balance sheet for 31st March we have already spent the uh amount on uh 57:37 57 minutes, 37 seconds the Jammu facility. So on a on a on a on a net basis uh we will be uh uh uh our 57:44 57 minutes, 44 seconds borrowings will go down significantly from the proceeds or what is the closing number as on today and what are we 57:52 57 minutes, 52 seconds anticipating to close the next quarter with the proceeds uh from this uh plot B. 57:58 57 minutes, 58 seconds So your understanding is right so it will come down significantly because we don't anticipate at this point of time any additional capex beyond the routine kex. 58:08 58 minutes, 8 seconds So you know uh we have already received 44 cr rupees advance for the plot two. 58:13 58 minutes, 13 seconds So balance around 95 odd 90 odd cr we'll definitely get in the current year when the transaction get executed. So accordingly our first preference will be 58:22 58 minutes, 22 seconds the debt reduction which we are saying you know and then if something comes up we'll keep you posted. 58:29 58 minutes, 29 seconds Okay sir. And lastly on the depreciation part sir if you could give some color on uh when we will be we we will be 58:36 58 minutes, 36 seconds capitalizing the Jamu asset from the first quarter. So what would be the annual uh depreciation uh cost that will be debited to the PNS. 58:47 58 minutes, 47 seconds Uh sir you know that exact working my team will be definitely in touch with you will tell you because it all depends on the date on the on which I'm 58:54 58 minutes, 54 seconds capitalizing. Uh so I have requested my team to ex specifically share the data with you. 59:00 59 minutes Okay sir. And on the cost sir you I I I think so you missed that number. What are our uh advertisement and the promotion expenses as a percentage of 59:10 59 minutes, 10 seconds sales? What should be pensioning you for the current financial year? 59:15 59 minutes, 15 seconds We've been holding on to about 10% and that will go through even in the new financial year. 59:27 59 minutes, 27 seconds Right sir thank you sir for all the uh answer in case of any further clarification I'll 59:34 59 minutes, 34 seconds get back uh to the team and and all the best sir for the new trajectory that journey where we have constructed 59:43 59 minutes, 43 seconds thank you thank you sir thank you ladies and gentlemen that was the last question for today I would now like to 59:52 59 minutes, 52 seconds hand the conference over to the management for the closing remarks. Thank you and over to you. 1:00:04 1 hour, 4 seconds Thank you everyone for taking time out to join us on this call today. I hope we have adequately answered all your 1:00:12 1 hour, 12 seconds questions. If you still have more queries, please reach out to our investor relations team and we will be 1:00:20 1 hour, 20 seconds happy to address those. Look forward to connecting with you again in the next quarter. Thank you. 1:00:29 1 hour, 29 seconds Thank you so much, sir. Ladies and gentlemen, on behalf of Ever Industries India Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.