Greenlam Industries Limited — Q3 FY26

Greenlam Industries Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=6-z6Vb5CaOo Published: 3 months ago

0:00 Ladies and gentlemen, good day and welcome to the Green Lamp Industries Limited Q3 and 9month FI26 earnings 0:07 7 seconds conference call. This conference call may contain forward-looking statements about the company which are based on the beliefs, opinions and expectations of the company as on date of this call. 0:19 19 seconds These statements are not the guarantees of its performance and involve tricks and uncertainties that are difficult to predict. As a reminder, all participant 0:28 28 seconds lines will be in the listenon only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance 0:36 36 seconds during the conference call, please signal an operator by pressing star then zero on attached on phone. Please note that this conference call is being 0:45 45 seconds recorded. I now hand the conference over to Mr. Sorup metal, managing director and chief executive officer, Green Lime 0:52 52 seconds Industries India Limited. Thank you and over to you sir. 0:58 58 seconds Good afternoon everybody and welcome to the quarter 3 and 9 months FI26 earnings call. Uh I'm pleased to have all of you 1:06 1 minute, 6 seconds on the call and we'll be discussing the performance and the business updates of Q3 and 9 months. I'm joined by our CFO Shoke and Sam from the finance team as 1:15 1 minute, 15 seconds well as the HGA team our uh investment our investor relations advisers. I'm sure you've had the opportunity to look at look at the results and the investor 1:24 1 minute, 24 seconds presentation which are available on the stock exchanges and on the company's website. I'll give you a small brief about uh some business updates of the 1:33 1 minute, 33 seconds last quarter and just take a little bit through the uh financial performance before I handle the call to a show. So on the business side uh on the laminate 1:41 1 minute, 41 seconds side the brownfield expansion at the nitpa plant is progressing more or less as on track and we should be up and running with our two additional lines in Q4 of FI27. 1:52 1 minute, 52 seconds uh on the laminates. Uh in last quarter we were awarded uh the uh largest exporter of laminates for I think last 2:00 2 minutes 16 years now and uh this clearly marks our you know performance in the category considering the quality innovation 2:09 2 minutes, 9 seconds dimensions the global presence the you know diverse markets we have and and presence across categories of laminates. 2:16 2 minutes, 16 seconds During the last quarter we also streamline our brand architecture. So now we as we move ahead we we're going to work on two brands. The green lamp 2:25 2 minutes, 25 seconds brand which will carry green lamb laminates, green lamp facads, green lamb sturdo you know man chipboard etc. And 2:33 2 minutes, 33 seconds now and the second brand is going to be masa. So masa brand will carry the laminates. The earthwall new mica becomes masa laminates. We have the 2:41 2 minutes, 41 seconds masassa plywood. We have the masassa veneer. The earthwall decode becomes masa veneers and and obviously we have the mass flooring and door. So we have 2:49 2 minutes, 49 seconds two brands in the market you know which we are going to push and promote and build. So I think that that streamlines lot of our operational issues on ground 2:57 2 minutes, 57 seconds and also increases the value of every brand and the spend we do on you know brand and promotion. 3:05 3 minutes, 5 seconds Uh on the chipboard business uh I think chipboard business is also gradually improving. We improved our numbers and performance reduced our losses there in 3:13 3 minutes, 13 seconds Q3. We [clears throat] also successfully launched a high moisture resistance chipboard which is the product comes with special 3:21 3 minutes, 21 seconds moisture resistance properties and we've had good feedback on the product and as as I talked with you know we are on the in the process of building the network 3:29 3 minutes, 29 seconds and the customer base. So broadly these were the large ticket you know business updates on the revenue side we grew 3:37 3 minutes, 37 seconds although we we grew 17 odd% at 706 crores in Q3 from our expectations the numbers were a bit lower one is that 3:45 3 minutes, 45 seconds versus Q2 you know sequentially we obviously came down by nearly 100 crores of revenue so Q3 usually has been a slow quarter for us considering the you know 3:54 3 minutes, 54 seconds holiday season etc where there's work disruption in India and for our exports to in the last 10 15 days of December 4:01 4 minutes, 1 second people postponed shipments. So, so I think that's impacted you know the Q3 revenues and also the domestic business 4:09 4 minutes, 9 seconds has been a bit slower than our expectation. As we move ahead I think Q4 we are driving to to build the numbers 4:16 4 minutes, 16 seconds well and as we talk things are going in a good direction. So we hope the Q4 numbers will be you know in line with the 18 odd% you know topline growth. On 4:25 4 minutes, 25 seconds the margin front at the gross margin level, I think we improved in percent versus Q2 also. So I think pricing discipline, raw metal cost, value 4:34 4 minutes, 34 seconds addition and that's all going in a good direction and I think we've had a one of the highest gross margins in Q3 of 55.5%. 4:44 4 minutes, 44 seconds Right? Slightly higher than you know Q2 also in terms of percent not in terms of value. So at the gross margin level I 4:52 4 minutes, 52 seconds think we've done reasonably well. EITA obviously we had a little bit of higher cost of operations there's been you know 4:59 4 minutes, 59 seconds some exceptional losses on the wage code matter and obviously we we still have high depreciation and interest due to the recent capitalizations of the plants 5:07 5 minutes, 7 seconds over the last 3 years. So I think the revenues need to kind of pull along and we hope that Q4 is you know better than 5:16 5 minutes, 16 seconds what we did in Q3 and usually Q4 and Q2 are better quarters as we've seen in the past and we're fairly confident that 5:24 5 minutes, 24 seconds business will you know move in that direction itself. So so I think that's it for me at the at the moment. So I will have I'll handle the call to Ashok and Ashoke will take you through all the 5:32 5 minutes, 32 seconds numbers and post which we can you know address your questions and queries if any. Thank you sir. 5:40 5 minutes, 40 seconds Good afternoon everyone. Let me take you through the financial performance for the quarter and for the 9 months. 5:47 5 minutes, 47 seconds First uh coming on to the quarterly performance on a console basis our net revenue grew by 17.3% 5:54 5 minutes, 54 seconds on year-on-year basis to 706 cr as compared to 602 cr in Q3 last year. 6:01 6 minutes, 1 second Gross margin grew by 60 basis points and stood at 55.6% in this quarter from 55% in Q3 last 6:09 6 minutes, 9 seconds year. Gross profit in absolute term also grew by 18.6% 6% on YI basis to 393 cr 6:18 6 minutes, 18 seconds as compared to 331 cr in quarter 3 last year. Abita margin before forex fluctuations and exceptional item while 6:27 6 minutes, 27 seconds declined by 170 basis point to 9.2% 2% in this quarter as compared to 10.9% in 6:34 6 minutes, 34 seconds Q3 last year mainly on account of higher operating cost and the and the Naidopeta 6:42 6 minutes, 42 seconds chipboard unit AITA before forex fluctuation and except exceptional item in absolute terms remain flat at 65 cr 6:51 6 minutes, 51 seconds in this quarter as compared to last year we incurred a net loss of6 cr for the quarter on account of forex fluctuations 7:00 7 minutes exceptional item, higher operation cost, higher interest and depreciation for chipboard businesses. Moving on to 9 7:07 7 minutes, 7 seconds months, net revenue for the 9 months grew by 15.9% on year-on-year basis and stood at 7:15 7 minutes, 15 seconds 2188 cr as compared to 1 uh 1,888 cr. Gross margin was up by 160 basis 7:25 7 minutes, 25 seconds point to 54.4% 4% for the 9 months in comparison to 52.8% in 9 months last year. Gross profit in 7:34 7 minutes, 34 seconds absolute term grew by 19.4% to 1,191 cr as compared to 997 cr in 9 months 7:43 7 minutes, 43 seconds last year. A beta margin before forex fluctuations before forex fluctuations and 7:49 7 minutes, 49 seconds exceptional item was down by 80 basis point at 10.4% 4% in comparison to 11.2% 7:58 7 minutes, 58 seconds in 9 months last year. Abita before forex fluctuation and exceptional item 8:04 8 minutes, 4 seconds grew by 7.5% to 227 cr in 9 months as compared to 211 crores last year. Net 8:12 8 minutes, 12 seconds profit was down by 77% to 15.5 cr in 9 months as against 66.9 cr in 9 months 8:21 8 minutes, 21 seconds last year. Now I'll move on to the segmental performance. First the laminate and allied segment. In the 8:28 8 minutes, 28 seconds quarter 3 revenue grew by 8.1% on yearon-year basis to 562 cr in this quarter from 520 cr in quarter 3 last 8:37 8 minutes, 37 seconds year. A beta margin before forex fluctuations and exceptional item stood at 14.5% a 8:44 8 minutes, 44 seconds growth of 100 basis points on year-on-year basis. 8:49 8 minutes, 49 seconds Production volume stood at 5.08 08 million seats at a utilization level of 83%. Sales volume for the quarter stood 8:57 8 minutes, 57 seconds at 4.75 million seats, a decline of4% on year-on-year basis. Our average 9:04 9 minutes, 4 seconds realization for the quarter was 1,143 per ship. 9:11 9 minutes, 11 seconds Moving on to 9 months, laminate revenue grew by 7.5% and stood at 1,775 9:19 9 minutes, 19 seconds cr from 1,651 cr in 9 months last year. Abita margin before forex fluctuation stood at 15.4% 9:29 9 minutes, 29 seconds a growth of 150 basis point on year-on-year basis. Productions and volume were at 16.14 million sheets at a 9:37 9 minutes, 37 seconds and at a utilization of 88%. Sales volume for the 9 months stood at 15.48 million sheets grew by 4.4% on 9:46 9 minutes, 46 seconds yearon-year basis. Our average realization of laminate for 9 months was at 1,12%. 9:55 9 minutes, 55 seconds Moving on to another segment, plywood analyte, which consists of plywood, decorative, veneer, engineer doors and engineer floors. 10:04 10 minutes, 4 seconds Revenue for the quarter grew by 9.5% to 90 cr in this quarter in comparison 10:11 10 minutes, 11 seconds to 82 cr in Q3 last year. Abita loss before forex fluctuation stood at 13.3 10:18 10 minutes, 18 seconds cr for the 9 month revenue grew by 18.6% 6% on yearon-year basis to 281 cr from 10:27 10 minutes, 27 seconds 236 cr in 9 month last year. Abita loss before forex fluctuation stood at for 10:33 10 minutes, 33 seconds the 9 month stood at 25.8 cr. I'll move on to the next segment which is panel and allied segments which consists of 10:41 10 minutes, 41 seconds chipboard for the for this quarter chipboard revenue grew by 13.3% on 10:47 10 minutes, 47 seconds quarteronquarter basis to 54.2 2 cr since there was uh no sales uh since we 10:54 10 minutes, 54 seconds have started our business in quarter 4 so there is no comparison figure for the last year a bit loss for the for before 11:02 11 minutes, 2 seconds forex fluctuation stood at 3.2 crduction volume stood at 30,028 m and at a utilization level of 41%. 11:13 11 minutes, 13 seconds Sales volume for the quarter stood at 28,954 cubic meter. A growth of 10% on year on 11:21 11 minutes, 21 seconds quarteron-quarter basis and average realization for the quarter stood at 18,668 11:28 11 minutes, 28 seconds cubic m. For the 9 months, chipboard revenue stood at 133 cr. Abita loss 11:35 11 minutes, 35 seconds before forest fluctuation stood at 20.9 cr. The products in volume were at 78,46 11:44 11 minutes, 44 seconds cubic meter and at a utilization level of 36%. 11:48 11 minutes, 48 seconds Sales volume for the 9 months stood at 69,851 cub m and our average realization for 11:55 11 minutes, 55 seconds the 9 months was at 18,992 cub m. 12:02 12 minutes, 2 seconds Moving on to balance sheet item. In this quarter, our working capital cycle improved by 9 days to 58 days as 12:08 12 minutes, 8 seconds compared to 67 days in Q3 last year and net debt as on 31st December stood at 12:16 12 minutes, 16 seconds 1,0 k. That's all from my side. Now we we will open the floor for the questioner. 12:24 12 minutes, 24 seconds Thank you. 12:25 12 minutes, 25 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask question may press 12:32 12 minutes, 32 seconds star and one on the touchstone telephone. If you wish to remove yourself from question queue, you may press star and two. Participants are 12:41 12 minutes, 41 seconds requested to use handsets for asking the question. Ladies and gentlemen, we wait for a moment while the question cube assembles. 13:04 13 minutes, 4 seconds The first question is from the line of Kesha Vijay Ratan Loi from HDSC securities. Please go ahead. 13:12 13 minutes, 12 seconds Hi, thank you for the opportunity. So firstly on your guidance uh which you have given top line 18 to 20% for this year still that holds true in light of 13:20 13 minutes, 20 seconds you know challenging demand environment and secondly the fly and particle board shipboard should uh break even aida 13:28 13 minutes, 28 seconds break even next year for the sales uh growth 9 months we had 13:36 13 minutes, 36 seconds about 15.9% precisely growth so depending on how Q4 four goes maybe you 13:45 13 minutes, 45 seconds know we probably end up in sort of 1820 maybe a percent you know lower maybe somewhere like on a on an annualized 13:53 13 minutes, 53 seconds basis so you know plus minus you know a bit here but I think we're not so way up despite the you know ground challenges 14:01 14 minutes, 1 second um of demand and in terms of uh break even of plywood and chiboot we expect that this will 14:09 14 minutes, 9 seconds break even in the next next Got it. And how are things evolving on 14:16 14 minutes, 16 seconds the U US tariff side for Aminate? Is it you know customer and you both are taking the hit of the tariff? 14:25 14 minutes, 25 seconds Yeah. Uh so as of now since there is no end of the light in terms of when it will come kind of a thing. So as of now the tariff is applicable on our product. 14:36 14 minutes, 36 seconds So we have done and we have increased some of the prices to the market. So some of the hit has been taken by the 14:43 14 minutes, 43 seconds taken by the customer and rest is taken care rest is taken hit by subsidiary and 14:50 14 minutes, 50 seconds as well as indepset in terms of uh when the depreciation in 14:57 14 minutes, 57 seconds INR. So some is this getting depreciated compensated from that. 15:05 15 minutes, 5 seconds Got it. Last question from my side. How are the laminate pricing trending domestic and export market and lastly how is the cost piece moving? 15:19 15 minutes, 19 seconds Sorry will you come again. 15:22 15 minutes, 22 seconds So so my question is how is the is there is has been any change in laminate present in domestic or international market and secondly is there any changes in raw material cost? 15:34 15 minutes, 34 seconds So laminate pricing in tubistic is by and large stable. International pricing 15:40 15 minutes, 40 seconds is also more stable. In few cases due to the uh currency depreciation we've had 15:47 15 minutes, 47 seconds to kind of uh you know agree on certain discounts due to competitive pressures. 15:53 15 minutes, 53 seconds On the raw metal cost side also by and large things are stable. Uh despite the rupee depreciation chemical costs are more or less you know in the similar 16:02 16 minutes, 2 seconds range. a deco paper where we import the paper from Europe and from Asia there obviously repeat costs have gone up 16:09 16 minutes, 9 seconds because of the currency depreciation otherwise the base prices more or less remain uh similar. So netn net net you 16:16 16 minutes, 16 seconds can assume that uh both sales prices and predominant prices are in a in a similar 16:24 16 minutes, 24 seconds like a range or not much uh you know movements there. 16:30 16 minutes, 30 seconds Got it. Thank you so much. 16:34 16 minutes, 34 seconds Thank you. A reminder to all the participants you may press star inv. 16:41 16 minutes, 41 seconds The next question is from the line of Ukash Napani from Anandraati. Please go ahead. 16:47 16 minutes, 47 seconds Uh yeah. Hi, good afternoon sir. Uh so my first question is regarding your particle board uh uh division. Uh so sir 16:54 16 minutes, 54 seconds just wanted to know like rupee has weakened quite a lot over the past few months. uh so so whether the industry is planning to take a a good price hike uh 17:03 17 minutes, 3 seconds in this category due to the impact of weakening rupee or or or particle board prices are likely to remain stable due to the supply overhang in the domestic 17:12 17 minutes, 12 seconds market uh for the next few quarters. So I just wanted your your view on this right. So so so chipboard uh because 17:22 17 minutes, 22 seconds imports of chipboard into India was anyway uh quite small and post the QCO implementation you know in uh 2025 I 17:31 17 minutes, 31 seconds think it further you know shrunk a bit because Indian capacities came up high quality uh uh and and availability of 17:39 17 minutes, 39 seconds better dimensions and local availability etc. So uh unfortunately there's not much you know impact of the uh rupee 17:48 17 minutes, 48 seconds depreciation in terms of making imports more expensive and us more competitive on the pricing side as we see things now 17:57 17 minutes, 57 seconds with the demand and supply we not seeing much room for you know price uh increases in chipboard what we are 18:05 18 minutes, 5 seconds trying to do is improve the value mix by uh promoting you know melamine facased chip board which is pamic particle board 18:14 18 minutes, 14 seconds and I also said earlier in the call we launched high moisture resistant grade in particle board you know which earlier 18:22 18 minutes, 22 seconds was not so available in the market now two or three companies have launched that where the realization per cubic meter is higher than the plane board so 18:31 18 minutes, 31 seconds I think steps are being taken to kind of upsell and also introduce uh you know superior product or variants in the 18:39 18 minutes, 39 seconds chipboard range so I think that might lead to certain price per cubic meter price relation improvements. 18:45 18 minutes, 45 seconds Okay. Uh and sir uh like what is our targeted uh capacity utilization for the particle board project for FI27 and on 18:54 18 minutes, 54 seconds the KEX side sir if you can give some idea how much capeex we have already spent uh till December 25 and how much is remaining and by what time frame we would spend the remaining amount. 19:06 19 minutes, 6 seconds So in terms of for the next year we have targeted around 55 60% of the capacity utilization uh for the chipboard and in 19:16 19 minutes, 16 seconds terms of the in the in terms of uh what is your next question? Uh sir KEX how 19:24 19 minutes, 24 seconds much we have spent till date and how much it is spending? 19:27 19 minutes, 27 seconds KEX in terms of that most of the KEX has been uh has been done in terms of that roughly around 50 to 75 cr rupees is 19:35 19 minutes, 35 seconds pending with some of this which may be spent in this uh quarter if if at all anything is remaining that will be done in the quarter one of next year. 19:45 19 minutes, 45 seconds Okay. Uh and sir my next question is on the plywood uh segment. So earlier we were targeting to reach the break even 19:52 19 minutes, 52 seconds point in plywood by Q4 of FI26 but in Q3 of FI26 what we saw that our operating losses has gone up. So just wanted to 20:00 20 minutes know whether we would now like to revise our timeline of reaching the break even point uh which we were earlier targeting Q4 of FI26. 20:09 20 minutes, 9 seconds So Q3 in the plywood segment actually if you see you know we slipped versus Q2 in terms of revenue gross margins also in 20:17 20 minutes, 17 seconds that segment came down a bit because uh in that entire segment lot of raw metal is imported. So in rupee term you know 20:24 20 minutes, 24 seconds the currency impact was there. So I think operational delever and some RM cost increase in rupee term because of the currency movement has happened in 20:33 20 minutes, 33 seconds the ply and allied category. We are we are hoping that Q4 will be you know a better period across you know all those 20:41 20 minutes, 41 seconds sub segments in the PL in in the PLY business and we we remain optimist that things will improve in that segment also and sir what would be our targeted 20:50 20 minutes, 50 seconds capacity realization for plywood plan for FI27 20:58 20 minutes, 58 seconds you see as of now as of now on a 9 month basis we are at a capacity utilization 21:05 21 minutes, 5 seconds ation of around 34% 35% close to 35% kind of a thing. So there also our our 21:13 21 minutes, 13 seconds expectation is that we should be in the range of around 55 60% kind. 21:18 21 minutes, 18 seconds Okay. And sir lastly on the laminate side sir like uh you have mentioned in the press release that we have seen modest volume growth in the domestic 21:25 21 minutes, 25 seconds market while our volume was relatively flat on a buy basis. So it implies that our export volume has gone down. So can 21:32 21 minutes, 32 seconds you please specify the reason for the decline in our export volume and how the export is shaping up uh in the current 21:39 21 minutes, 39 seconds March quarter and on the realization front sir there has been a sharp improvement in laminate realization in December quarter sir is it majorly 21:48 21 minutes, 48 seconds because of the weakening rupee effect and whether such higher realization is likely to be sustained going forward or we will have to pass on the benefit of 21:56 21 minutes, 56 seconds weak rupee to the consumer uh to push our volume in the export market going ahead. So these are my two questions on volume. 22:03 22 minutes, 3 seconds So I'll take the question the volume part. So in exports like I said earlier also in the call that in the month of December we've had postponement of 22:12 22 minutes, 12 seconds shipments you know for our European and uh uh UK market postponed shipments to 22:19 22 minutes, 19 seconds Jan from let's say December. So, so our inventory in transit actually has uh has 22:25 22 minutes, 25 seconds increased uh substantially and you know so those sales should show up you know in Q4 as far as exports is concerned on 22:35 22 minutes, 35 seconds the price realization improvement so you're right largely price ration improvement has happened due to the 22:42 22 minutes, 42 seconds weakening of the rupee and some value mix improvement you know in the export business and the last question was sir 22:50 22 minutes, 50 seconds Yeah. So in terms of the uh the uh uh volume if you see for the 22:57 22 minutes, 57 seconds export the 9 month volume is uh is higher. So but in this quarter as 23:04 23 minutes, 4 seconds mentioned in terms of that only otherwise we are on track in terms of that there will be value growth in volume growth in both the segment will be there for 9 months. Okay. Got it sir. 23:16 23 minutes, 16 seconds Thanks sir. Thank you. 23:22 23 minutes, 22 seconds A reminder to all the participants you may press star and one to ask question. 23:29 23 minutes, 29 seconds The next question is from the line of SNHA from Noama. Please go ahead. 23:35 23 minutes, 35 seconds Hi team good afternoon and thanks a lot for the opportunity. Um just two to three questions from mine. Firstly on the call you've mentioned that there 23:42 23 minutes, 42 seconds were couple of one-off impact uh like the case of wage impact. You also mentioned I think there was some forex loss. Could you quantify all the one-off impact in this particular quarter? 23:55 23 minutes, 55 seconds So, so those one-off impact those like forex detail is already there in is already there. Oneoff is the exceptional 24:04 24 minutes, 4 seconds which is on account of uh which is on account of wage code kind of a thing that is 6.2 2 cr 24:13 24 minutes, 13 seconds some additional higher operating costs you know versus like let's say Q3 or Q2 24:21 24 minutes, 21 seconds so no no specific one-off cases which we can mention right now but yeah and then secondly with respect to demand 24:30 24 minutes, 30 seconds what we could see is of course there is quarteronquarter dip which is seasonally there um but even in case of newer segments like plywood and all we've not 24:39 24 minutes, 39 seconds seen any particular improvement uh you know in a strong way this particular quarter uh even your doors and flooring businesses you know again 24:46 24 minutes, 46 seconds making losses in this particular was it any demand issue in quarter 3 as such or you would just mention the seasonality 24:53 24 minutes, 53 seconds impact in quarter 3 so if you see Q3 and Q3 look uh so yes 25:00 25 minutes obviously we've grown at 17 odd% but in some segments the growth's not not what it should be and and we said that earlier so one there is a seasonality 25:09 25 minutes, 9 seconds impact because typically Q3 is a bit weaker at least in our case you know traditionally also has been a bit weaker than Q2 and so Q2 and Q4 are 25:17 25 minutes, 17 seconds the you know better quarters but on the demand side also the feedback we have from from our teams on ground and from our partners is demand is just generally 25:26 25 minutes, 26 seconds a bit slow and there are cash flow challenges so that's just more like a general feedback I can't quantify or put a data to it but that's a feedback we we 25:36 25 minutes, 36 seconds receive from people but our domestic business also has grown at 17% % you know but yes it could it could be because when you see it in light of Q2 25:44 25 minutes, 44 seconds you know sequential Q3 looks a bit weak in ter in terms of the revenue growth and it is weak actually versus Q Q2 so 25:53 25 minutes, 53 seconds yes people do say that demand's been a bit low on ground you know seasonality delc graph issues you know I think there 26:01 26 minutes, 1 second are so many issues people keep talking about but I I can't put a finger on it actually yeah so in that case we should see a bounce 26:09 26 minutes, 9 seconds back in terms of profitability and revenue growth for all these divisions like decorative veneer doors and floors everything moving back to profitability by Q4. 26:19 26 minutes, 19 seconds So if you see Q2 performance at at additional of 100 crore revenues you know are a bit you know was about 106 26:26 26 minutes, 26 seconds 107. So fixed costs are more or less you know done GP you know is is being maintained price points are you know 26:34 26 minutes, 34 seconds maintained product quality supply chain factories all doing reasonably well. So I think if revenues go up, you know, I don't see a reason why that won't happen 26:42 26 minutes, 42 seconds actually and we're pretty hopeful that revenues in Q4 should be decent and traditionally also you know we've done nearly similar numbers in Q4 and Q2 26:50 26 minutes, 50 seconds maybe at times slightly higher than Q2 also. 26:54 26 minutes, 54 seconds And lastly on the plywood front uh you know our utilization is still hovering at about 30 35 odd% it's been roughly around 2 and 1/2 years of operations. 27:04 27 minutes, 4 seconds uh what were you actually would want to know what is it what is lagging in this particular segment is it as per the track that the company would have 27:13 27 minutes, 13 seconds anticipated or are we facing delays if yes this is on account of what what's your reading on this 27:19 27 minutes, 19 seconds so it's been slower than we expected uh I think we're doing reasonably well in south India and um you know the other 27:28 27 minutes, 28 seconds markets which we opened over let's say this fi and some in last year I think that they're still yet to kind of uh 27:38 27 minutes, 38 seconds mature. We also have now in last like towards the end of Q3 uh done a soft 27:46 27 minutes, 46 seconds launch of a variant you know below uh the marine grade variant called BWP plus 27:53 27 minutes, 53 seconds which is at a 5 6% you know lower variant. So I think that offering was missing from our house so we've done that also. So we still are hopeful that 28:02 28 minutes, 2 seconds this number should we should should improve feedback on product quality and secondary working uh you know is is pretty good and I think with this brand 28:11 28 minutes, 11 seconds architecture so which we've streamlined with MASA brand carrying plywood laminates veneers flooring door and that 28:18 28 minutes, 18 seconds also give it a bit of a more branding portion help in you know better demand creation so we we remain positive on on 28:25 28 minutes, 25 seconds the segment but yes it's been a bit slower than we expected. 28:30 28 minutes, 30 seconds noted and one last one in case I may you also mentioned that you've streamlined brands and you have launched you know even laminates under massa and you know 28:39 28 minutes, 39 seconds plywood was always there just want to understand what would be the difference between the green lamb brand and masa brand what would be the price change 28:47 28 minutes, 47 seconds between both let's say laminates of green lamb is sold at what pricing range and what would be that for masa and similarly for maybe one or two other product in case you can give some color 28:56 28 minutes, 56 seconds there so we didn't launch a brand new collection of masa we already had a brand called New Maka uh you know in in 29:05 29 minutes, 5 seconds that 1 millm segment so that's been rebranded repositioned as Masa so so at one point we had four brands Greenland 29:14 29 minutes, 14 seconds masa Deco wood and newa so the so Deco wood supply businesses moved together 29:21 29 minutes, 21 seconds was rebranded as Masa vineer sometime earlier in FI26 and now with the new launch new range 29:29 29 minutes, 29 seconds launch of new mica we rebranded new mica as masa so so it was already existing we just corrected the whole program and you 29:36 29 minutes, 36 seconds know put it under one brand so the masa brand now you know is nearly a thousand cr you know potential portfolio with all these categories as far as the 29:44 29 minutes, 44 seconds difference is concerned there are two different brands which have two different you know product programs and ranges so from a price point difference 29:54 29 minutes, 54 seconds you know it's not much you know green lamp and masa you know on The main category would be maybe 3 to 5% you know 30:02 30 minutes, 2 seconds lower. Mass is probably 3 to 5% lower than prelam laminates but it's not a price point driven program. It's more of 30:09 30 minutes, 9 seconds a range catalog, common dealers, common specifications. You know, I think that's the model of Masa Laminates as we as we 30:17 30 minutes, 17 seconds move ahead and that's the only product which has a which has a overlap. Otherwise, you know, green, you know, chipboard and 30:26 30 minutes, 26 seconds plywood, flooring, doors, veneers are all we don't have multiple brands. It's only in laminates we have this, you know, a two brand strategy. 30:37 30 minutes, 37 seconds No, I think that was pretty clear and you also mentioned that this brand has potential of,000 cr revenue. If you may ask what it what would be in FI26 30:45 30 minutes, 45 seconds estimated or FI25 what that would have been I I don't have that math right in front of me and Ashok is smiling so I think 30:53 30 minutes, 53 seconds we'll have to deal with Ashoke on this separately please. Sure sure we'll take it oneon one. We'll connect we'll connect both. 31:01 31 minutes, 1 second Sure sure. Thanks. Thanks a lot team and all the very best. Thank you. 31:09 31 minutes, 9 seconds The next question is from the line of Bhavin Dopani from Invest. Please go ahead. 31:16 31 minutes, 16 seconds Yeah. Hi sir. Uh thanks for the opportunity. Uh first question is related to chipboard or any indication 31:23 31 minutes, 23 seconds of India level uh supply in terms of CBM as of now and any gauges or any ideas on new capacities that are coming up. 31:33 31 minutes, 33 seconds So we have all this data but it's not available right away on total installed capacity because board capacities have 31:40 31 minutes, 40 seconds to be seen as woodbased particle boards you know and bgas based and then woodbased there are continuous lines and multi lines so I think we have all the 31:49 31 minutes, 49 seconds data it's not right off available here so I think maybe someone can help you with that at a later point as far as new 31:56 31 minutes, 56 seconds capacities coming up as far as I know no new you know major capacities are coming up. We do hear of some pagas based 32:05 32 minutes, 5 seconds boards you know plants coming up in some parts but on the wood based particle board or board plants of our size you know I 32:13 32 minutes, 13 seconds haven't heard of anything as of now but uh that's what I know but I'm not so sure on that but with my understanding 32:20 32 minutes, 20 seconds not not many or not or literally none new capacities are coming up at this moment unless you have anything additive 32:27 32 minutes, 27 seconds yeah okay also Sir, sorry. 32:33 32 minutes, 33 seconds Sorry. I was saying the capacity you could put up you know was it a 85 rupee to euro eur rupee conversion and now now 32:42 32 minutes, 42 seconds with the price points you know clearly I think the capex costs also go up with the depreciation in both the dollar and 32:50 32 minutes, 50 seconds the euro. So obviously going to be a bit harder in terms of capex cost etc. But sorry go ahead please. 32:57 32 minutes, 57 seconds Go ahead. Yeah. uh and in case of raw materials or postb what we have seen is decline in production of plywood by unorganized players and what we 33:06 33 minutes, 6 seconds understand is there there is a case of shortfall of scrapped woods which is generally used as a input for making uh 33:12 33 minutes, 12 seconds chipboard is it by any chance impacting us or have we seen any inflation over that in that part of the uh product or 33:20 33 minutes, 20 seconds product chain value chain as far as we are concerned uh uh this is 33:26 33 minutes, 26 seconds not because we were not using you know plywoods like we were using our own generated you know waste of our plywood 33:35 33 minutes, 35 seconds factory you know and the wood we were using uh but from that point we haven't seen much impact in our business maybe certain factories of chipboard were 33:44 33 minutes, 44 seconds based on you know wood waste generated from sawmill and pawmiss but that was not the case in that's not the case in our factory so we are we have own 33:52 33 minutes, 52 seconds chippers so we are buying agroforested wood in and from Andhra Pradesh and you know surrounding areas so So that's what impacted us in terms of supply chain or cost. 34:02 34 minutes, 2 seconds All right. And in case of resin prices due to this uh ongoing political issues, how have you seen resin pricing reacting after December? 34:15 34 minutes, 15 seconds When you say geopolitical, right? Geopolitical. Yes. Yes. Yes. Yes. Yes. 34:19 34 minutes, 19 seconds Yeah. So I I said that earlier to somebody. I think the the chemical costs have more or less been chemical and the 34:27 34 minutes, 27 seconds output of resin more or less been stable despite the you know rupee depreciation maybe there's lack of demand or something of that sort. So actually you 34:35 34 minutes, 35 seconds know despite the rupee depreciation uh resin cost of chemical cost by and large uh you know some some some have gone down a bit some have gone up a bit but 34:44 34 minutes, 44 seconds at a overall level you know as cost of chemicals in in raw material it's been about about the same 34:52 34 minutes, 52 seconds all right and one last question uh so in case of chipboards there is obviously higher presence of unorganized players so what I understand is their quality is 35:01 35 minutes, 1 second subpar versus our product right so to compete with them. Do we have any product which is at parity or comparable to them or we don't produce such quality or mass end of the uh product? 35:15 35 minutes, 15 seconds No. So as for the board quality we have just one board quality. So we don't have a B-grade board quality. But in terms of 35:22 35 minutes, 22 seconds the decor range, so we have we have two decor range in melamine fixture board. 35:28 35 minutes, 28 seconds One's a studio which is more premium only European papers and ones is called universal which is a bit lower than the studio where the deco papers are more 35:37 35 minutes, 37 seconds suited to residential you know usages of people who make furniture for you know uh residential purposes which are from 35:44 35 minutes, 44 seconds Chinese origin or or Indian origin so that's priced at a slightly lower point but uh the the absolutely local market 35:51 35 minutes, 51 seconds based model that's really really cheap quality you know so we can't even end up producing that in our factory or we can't even imagine introducing that. So, 35:59 35 minutes, 59 seconds so yes, we we don't we're not in that space. But you do appreciate with better quality chipboard. I think the market is also moving up, you know, with the 36:07 36 minutes, 7 seconds offering and earlier there were not too many companies who are focused on this category. Now we have two three companies who are focused and they have meaningful capacities. They have a 36:15 36 minutes, 15 seconds pretty good range. They have teams on ground. So I think the the category will itself kind of get get uplifted. 36:22 36 minutes, 22 seconds So sir sir how should one understand the pricing differential between our product versus unorganized players in chipboard. 36:30 36 minutes, 30 seconds Yes. 36:32 36 minutes, 32 seconds So so one is for the local companies or unorganized guys won't produce. So unorganized would again you have to see 36:40 36 minutes, 40 seconds in two parts. One is the bas producers the other is the wood based producers. 36:44 36 minutes, 44 seconds So many of the local companies are limited by the dimension they can produce or the thicknesses they can produce. So the flexibility of the of 36:51 36 minutes, 51 seconds the equipments or the technology can't produce you know 6 by 8 6 ft by 8 ft 6 ft by 9 ft some can only produce some 36:58 36 minutes, 58 seconds sizes. So, so it's a bit more longish discussion but but clearly I think with the quality of board they will not have 37:05 37 minutes, 5 seconds magnetic controls there the boards would consume more you know blades of the OEM producer the finishing will not be nice 37:12 37 minutes, 12 seconds and undulations the texture product will not be good you know the resin emissions could be higher so I think there's so 37:19 37 minutes, 19 seconds many parameters you know on that point taken sir but how should one understand the pricing differential so I 37:27 37 minutes, 27 seconds understand that So pricing again would would vary. So with so it depends on what you compare with. We could assume that local players 37:36 37 minutes, 36 seconds would be what 15 20% lower in some cases. Some could be 7 to 10%. So can't 37:42 37 minutes, 42 seconds put one number to it but yeah that can be a range. 37:48 37 minutes, 48 seconds Fair enough. All right. Perfect. Thank you so much. 37:54 37 minutes, 54 seconds Thank you. A reminder to all the participants, you may press star N1 to ask questions 38:13 38 minutes, 13 seconds requested to please press star and one to ask question. 38:23 38 minutes, 23 seconds If there are no further questions from the participants, I will now hand the conference over to the management for the closing comments. Over to you sir. 38:31 38 minutes, 31 seconds Thank you everyone. Uh thank you for joining in for the call. In case you have any other questions, you can reach out to us or to SGA for for any further 38:39 38 minutes, 39 seconds clarifications. Thank you. Looking forward. Thank you. Thank you everyone. 38:44 38 minutes, 44 seconds Thank you on behalf of Green Lamb Industries Limited. That concludes this conference. 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