Greenpanel Industries Limited — Q3 FY26

Greenpanel Industries Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=Z3oqNKiHlvg Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Green Panel Industries Limited Q3 and 9M FI26 earnings 0:09 9 seconds conference call. As a reminder, all participant lines will remain in the listenon only mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:20 20 seconds Should you need assistance during the conference call, please signal the operator by pressing star then zero on your touchstone telephone. 0:28 28 seconds Please note that this conference is being recorded. 0:32 32 seconds I will now hand the conference over to Mr. Risha Baral from CDR India for opening remarks. Thank you and over to you Risha. 0:40 40 seconds Good day everyone and thank you for joining us on the Green Panel Industries Limited Q3 and 9 months FY26 earnings conference call. We have with us today 0:50 50 seconds Mr. Shovin Mittal managing director and Mr. Himmanu the CFO. Before we begin, I would like to share uh state that some 0:58 58 seconds statements made in today's discussion may be forward-looking in nature and may involve risks and uncertainties. A detailed statement in this regard is 1:05 1 minute, 5 seconds available in the results presentation which was shared with you earlier. I would now like to invite Mr. Shovin Mittal to begin the proceedings of the call. Over to you sir. Thank you. 1:19 1 minute, 19 seconds Thank you. Good evening ladies and gentlemen and welcome to our quarter 3 FI26 earnings call. While the re retail 1:27 1 minute, 27 seconds markets were a little tepid post the Diwali festivities, we continue our renew renewed focus on channel 1:34 1 minute, 34 seconds engagement with more sales and marketing investments to support volume growth during quarter 3. The quarter began with 1:42 1 minute, 42 seconds the announcement of a new foreign travel scheme and ended with the launch of the country's strongest, toughest and 1:49 1 minute, 49 seconds heaviest bowling waterproof MDF to supplement our existing product offerings to the customers. 1:57 1 minute, 57 seconds This along with the other ATL and BTL initiatives about which I enumerated in more details in our last earnings call 2:05 2 minutes, 5 seconds will go a long way to assist and create a more sustainable volume growth strategy for Green Panel over the next 3 to 5 years. 2:13 2 minutes, 13 seconds Our domestic MDF volumes grew by 19% yearonear and the export volumes were higher by 8.3% yearonear. Total NDF 2:22 2 minutes, 22 seconds volume growth thus being 17.1% for quarter 3. While domestic pricing was unchanged from quarter 2 levels 2:30 2 minutes, 30 seconds initially, discounting pressures from relevant payers came back into play post Diwali and we too had no option but to offer more discounts between November 2:39 2 minutes, 39 seconds and December much more to the OEMs where pricing is key. As a result, the domestic realization was lower by 1.4% sequentially. 2:49 2 minutes, 49 seconds Some portion of this was also on account of the change in productwise salience post addition of the new plant at AP and increase in overall proportion to OEM 2:58 2 minutes, 58 seconds sales. Plywood business is yet to revive meaningfully and we are already working on possible next steps to scale up this 3:05 3 minutes, 5 seconds business. Maybe I'll be able to share more on this over the next few quarters. 3:11 3 minutes, 11 seconds Counting the counting the exports and plywood sales as well. Total revenues for the quarter 3:18 3 minutes, 18 seconds grew by 11.4% year-on-year to rupees 398.8 crores. Given a renewed focus on 3:25 3 minutes, 25 seconds cost optimization, our gross margins and the operating margins were higher both on a year-on-year and also on a 3:32 3 minutes, 32 seconds sequential basis. Given our strong performance in Q3 amidst a more challenging market, the revised guidance that I shared with you on our last call 3:41 3 minutes, 41 seconds for the full year of FY26 remains unchanged. We continue to target a high team growth in NDF volumes with 3:48 3 minutes, 48 seconds operating aa excluding FX and one-offs of high singledigit to early double digit average for the full year. With 3:56 3 minutes, 56 seconds this I request our CFO Mr. Jinda for the financial and other updates. Thank you. 4:05 4 minutes, 5 seconds Hi, thank you Shubanj. Uh good evening all. Um since Shouinci has already covered the revenues, I'll try and give 4:12 4 minutes, 12 seconds you more uh insights on the cost and margin front. So on the cost side, uh timber costs which were gradually receding with improved supplies till 4:21 4 minutes, 21 seconds early November uh were a bit more volatile thereafter with the onset of severe winter conditions in north and 4:28 4 minutes, 28 seconds heavy heavy rainfalls uh in south. But we have again started witnessing some bit of cost reduction from January onwards. Cost of chemicals has also come 4:37 4 minutes, 37 seconds up from the peaks in quarter two over the last two three months which is also supporting margins. Now uh more from a 4:44 4 minutes, 44 seconds cost of production point of view we were almost flat sequentially. Uh the savings on raw materials which led to expansion 4:52 4 minutes, 52 seconds of a gross margins uh to almost 50%. Uh were partially negated by the higher fuel and power costs uh which were 5:00 5 minutes caused by a seasonal spike on account of the severe winter conditions in the north. 5:06 5 minutes, 6 seconds We also invested a bit more on uh the sales and marketing bit uh to build salience uh both in terms of people and pure sales promotion expenses. 5:14 5 minutes, 14 seconds As a result, our operating aida excluding the impact of currency movement on the long-term euro borrowing for the new plant was rupees 44.3 crores 5:24 5 minutes, 24 seconds or 11.2% of our revenues with MDF at 11.9% and plywood at 1.4%. 5:32 5 minutes, 32 seconds The above also includes the impact of recognition of the balance uh approved but not yet accounted power subsidy of 5:40 5 minutes, 40 seconds rupees 8 1/2 crores for the old line at Amra uh post the partial receipt of rupees 19.3 crores from the state 5:47 5 minutes, 47 seconds government in October 2025 uh for clarity because this is something which may come up as a question uh 5:54 5 minutes, 54 seconds during the the course of the call uh so for clarity out of the total blessed state government subsidy for the old 6:02 6 minutes, 2 seconds line which was 96 crores, 68 was capital subsidy and 28 was pure uh revenue subsidy. 6:10 6 minutes, 10 seconds Out of this in the past we had already recognized 15 crores of capital subsidy which was adjusted against the carrying cost of the asset and on the revenue 6:18 6 minutes, 18 seconds side the entire impact was taken into P&L 20 crores. uh the balance portion which was blessed but not not accounted 6:26 6 minutes, 26 seconds for which is the capital subsidy of 54 crores has now been adjusted against the carrying cost of assets and also the 6:34 6 minutes, 34 seconds balance 8 and a half like I mentioned above has also been brought into P&L via adding it to the other operating income as a one 6:43 6 minutes, 43 seconds uh again in quarter through we were impacted by the continued volatility on the exchange rate uh on our outstanding long-term uh euro denominated borrowings 6:52 6 minutes, 52 seconds This impact is rupes 3 crores during the last quarter and cumulatively this year um only on the borrowing the impact is 6:59 6 minutes, 59 seconds 43 crores. Uh bulk of this is obviously unrealized marktomarket non-cash loss. 7:06 7 minutes, 6 seconds Apart from this there is also an impact of 10 crores per quarter uh which is in form of the incremental interest in depreciation uh on account of the 7:15 7 minutes, 15 seconds capitalization of the new plant uh at AP counting these the PBT was 11.4 crores 7:24 7 minutes, 24 seconds positive and the PAT was plus rupees 10.2 into growth for quarter 3. 7:29 7 minutes, 29 seconds Uh on the balance sheet side, we did incre increase inventories to support sales for second half improve 7:36 7 minutes, 36 seconds availability. But despite this, our poor cash conversion cycle was still maintained at 32 days. Uh the leverage has also stayed very comfortable for us. 7:45 7 minutes, 45 seconds Our net debt uh is 163 crores. 7:49 7 minutes, 49 seconds If we count out the non-cash FX exch FX change, the actual net reduction has been 40 crores during 9 months 7:58 7 minutes, 58 seconds uh and almost 85 crores from the peak that we saw on 30th of June. On that note, I think we can open the question and answers please. 8:07 8 minutes, 7 seconds Thank you. 8:11 8 minutes, 11 seconds Thank you. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a 8:18 8 minutes, 18 seconds question may press star and one on their touchstone telephone. 8:22 8 minutes, 22 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use their handsets while asking a question. 8:32 8 minutes, 32 seconds Ladies and gentlemen, we will wait for a moment while the question symbols. 8:39 8 minutes, 39 seconds Ladies and gentlemen, if you wish to ask a question, please press star and one. 8:47 8 minutes, 47 seconds We take the first question from the line of Balaji Vyanat from Nafa Asset Managers Private Limited. Please go ahead. 8:55 8 minutes, 55 seconds Uh good evening and uh uh congrats for uh uh uh the recovery that we have seen and if you could uh you know throw some 9:04 9 minutes, 4 seconds light on the import scenario and how we are seeing it play out uh you know for the rest of the year please to begin with. 9:13 9 minutes, 13 seconds Sure stop. So um imports are still quite muted to be honest with you and you know 9:20 9 minutes, 20 seconds a few companies have received the BIS certification. However you know with the current pricing situation 9:29 9 minutes, 29 seconds uh in the OEM segments where imports were more prominent uh the current pricing from the uh uh domestic 9:36 9 minutes, 36 seconds producers itself is quite competitive for to allow any additional imports coming in at this point of time. There are certain specific applications 9:45 9 minutes, 45 seconds because of raw material characteristics where domestic material is not suitable. 9:52 9 minutes, 52 seconds In those applications, imports are coming in. Uh these are limited to uh you know uh specific applications where thin panels used like laser cutting etc. 10:02 10 minutes, 2 seconds But otherwise barring that there is not any immediate or foreseeable threat from imports u uh uh at the current price 10:12 10 minutes, 12 seconds points and uh you know th this will also be supplemented by uh an incremental QCO uh 10:20 10 minutes, 20 seconds which you spoke about last quarter. So Benji if you could uh give us any update on that. 10:26 10 minutes, 26 seconds So um uh the new QCO standards have been implemented. In fact, we are now ourselves in the process of you know um 10:35 10 minutes, 35 seconds uh rebranding and uh re um uh you know uh calibrating our own uh specifications 10:41 10 minutes, 41 seconds to the new QCO standards. So of course these end up being more stringent than they were previously um you know uh in 10:49 10 minutes, 49 seconds the BI standards and uh this should further restrict uh imports coming in um and compliance for uh with BIS. 11:00 11 minutes Thank you. And uh uh question to Himmanuji on the on the raw material side uh you know especially on the uh 11:08 11 minutes, 8 seconds ura uh if you could uh give us some more uh uh color on uh you know in terms of how you see this playing out and whether uh uh the worst is over. 11:19 11 minutes, 19 seconds See we don't buy URA directly we buy only resins right these are manufactured by someone else our vendors and we buy 11:27 11 minutes, 27 seconds them on competitive basis right so so for us I think the consequence is how much do we buy at the chemicals end of 11:34 11 minutes, 34 seconds the day I think um you know we did see a spike like I mentioned earlier on the two calls uh during quarter 2 and 11:42 11 minutes, 42 seconds thereafter the prices have come are coming down within pre-supplies I think you know today where we are I think you No, I think the pricing pricing environment per se is pretty stable now. 11:52 11 minutes, 52 seconds It's already come down. 11:56 11 minutes, 56 seconds Okay. Thank you so much. I'll get back in the queue. Yes. 12:01 12 minutes, 1 second Thank you. We take the next question from the line of Utkash Nani from Anandraati. Please go ahead. 12:07 12 minutes, 7 seconds Yeah. Hi, good evening sir. Uh so my first question is on the MDF segment. Uh so like if you see our domestic MDF 12:14 12 minutes, 14 seconds revenue has remained stable on a Q1Q basis but our margin has slightly improved. So can you please specify what 12:22 12 minutes, 22 seconds is the reason for the margin improvement in December quarter and what would be our MDF AITA margin guidance for FI27? 12:36 12 minutes, 36 seconds Yeah yeah yeah no problem I can. So you're right sequentially the volumes have been cluttered on the retail side 12:43 12 minutes, 43 seconds on the domestic front right uh but yes we have sold more of exports right so you know when you sell more obviously 12:51 12 minutes, 51 seconds operating leverages also play out and this is why you see operating margins going up uh yeah otherwise like 12:59 12 minutes, 59 seconds yes sir was that the export commands pretty significantly lower margin compared to the domestic volume uh so I 13:07 13 minutes, 7 seconds it should actually pull on the margin but it has actually no no no no no no no no no so please try and appreciate you know even in the last quarter my fixed costs were already 13:15 13 minutes, 15 seconds absorbed now with additional volumes coming into play see every cubic meter that I sell I get more and more contribution even exports may make money 13:23 13 minutes, 23 seconds for me not that they don't at a contribution level basis right so it's only recovery of fixed cost that I'm working on via exports if the domestic 13:32 13 minutes, 32 seconds markets are a little challenging and there is an opportunity on the export front I still go ahead and sell same with OEMs if the retail markets are 13:40 13 minutes, 40 seconds great I'll try and push in more and more on retail right so I think there is definitely some advantage which flows in not only on my operating leverage but 13:49 13 minutes, 49 seconds also otherwise on my direct expenses on my power fuel on the you know on the quality of the product also one way or another way when when I run my lines 13:57 13 minutes, 57 seconds more sustainably and this is what you are seeing in my margins now flowing in okay uh and sir like uh given rupee has 14:06 14 minutes, 6 seconds weakened quite a lot so I just wanted to know from your strategy perspective whether you would be planning to take any price hike in near future or you 14:14 14 minutes, 14 seconds would target to quickly ramp up the south plant by keeping the prices relatively stable for the next few quarters. 14:22 14 minutes, 22 seconds uh on the when you're saying please please when you're saying yeah I I I didn't understand when you're 14:29 14 minutes, 29 seconds saying price height are you talking about in the export segment or the domestic segment the domestic market sir 14:37 14 minutes, 37 seconds no so uh you know like I mentioned earlier that uh at the moment we don't foresee any major threat coming in uh 14:46 14 minutes, 46 seconds from exports my understanding is what you're referring to is that ex exports will become more expensive Sorry. 14:51 14 minutes, 51 seconds Imports will become more expensive in in rupee terms. Is that right? That's what you mean. Yes sir. Yes sir. 14:57 14 minutes, 57 seconds Yeah. But like I mentioned, you know, imports are not really a threat at this point of time because uh domestic price pricing itself is at a at a price point where we are already very competitive. 15:09 15 minutes, 9 seconds Uh so uh today in the segments where imports were being consumed uh the real 15:16 15 minutes, 16 seconds competition is from the domestic players. It's not from imports to be honest with you. and uh uh because of the domestic competition and pricing 15:24 15 minutes, 24 seconds pressures, I don't foresee we'll be able to factor in the you know the rupee uh devaluation into our pricing into the to the customers. 15:35 15 minutes, 35 seconds Okay, got it sir. And sir, lastly sir like on the subsidy part if you can kindly help me uh uh like how much EPCG benefit we have recognized in December 15:43 15 minutes, 43 seconds quarter uh and uh uh and if you can also specify the subsidy amount which we have mentioned in the footnote like 8 and a 15:51 15 minutes, 51 seconds half cr you have already mentioned that it is uh it has been recognized as part of operating income 19.3 cr which we 15:58 15 minutes, 58 seconds have received where it has been recognized and the 53.7 cr which is yet to be received where we have recognized in the P&L or in the balance finish it 16:06 16 minutes, 6 seconds sir if you can specify this I okay let me let me try and answer this uh so EPCG is on exports if we export 16:14 16 minutes, 14 seconds more we recognize more EPCG in the last three quarters I'll give you all the figures so that you get all the figures for the current fiscal in quarter 1 we 16:23 16 minutes, 23 seconds had 5 cr EPCG in quarter 2 we had six and this quarter we have eight that's EPCG which is there as part of your 16:30 16 minutes, 30 seconds other operating income so every quarter we are getting you know more or less between 5 to 8 crores. Yeah. Now your 16:37 16 minutes, 37 seconds second question is on subsidies. As I mentioned in my opening remarks, uh anticipating this question will obviously come in. So for you to know 16:46 16 minutes, 46 seconds there was 96 crores that I had to receive from the government of Andhra Pradesh for the old line. A large part 16:54 16 minutes, 54 seconds of this was capital subsidy which was 68 cr. There was the balance was basically power subsidy which is revenue in nature 17:01 17 minutes, 1 second 28 crores. Now in the past the company had recognized already 15 crores of capital subsidy and 20 crores of revenue 17:10 17 minutes, 10 seconds subsidy in books which means 35 was already accounted for money not received this was the status till 30th September 17:18 17 minutes, 18 seconds since I received money in October which was 19 crores against these receivables I brought down my receivables from 35 17:26 17 minutes, 26 seconds minus 19 that's the receable that I was carrying in a way but then because money is flowing in already there's 20% of the 17:33 17 minutes, 33 seconds money which has come in based on our assessments and based on the discussions with the auditors and otherwise we said we will recognize the balanced 17:42 17 minutes, 42 seconds unaccounted but approved subsidies in our books. Now what have we done in this quarter out of the balanced unaccounted capital 17:51 17 minutes, 51 seconds subsidy which is 54 crores that has been adjusted against the carrying cost of the assets the fixed assets. So this is 17:59 17 minutes, 59 seconds why my fixed asset block has come down to that extent 54 cr on which you know obviously going forward the depreciation 18:08 18 minutes, 8 seconds expense is going to be lower based on the remaining life of the asset. 18:12 18 minutes, 12 seconds The revenue subsidy which was approved but not accounted for was only 82 which has now been brought into books via the 18:20 18 minutes, 20 seconds P&L getting it added to the operating income. Uh does this simplify or answer what you want what you wanted to know? 18:29 18 minutes, 29 seconds Yeah. Yeah. It is pretty clear and sly like sir how much EPCG benefit abundance is left which we can uh acrew in the coming quarter. 18:38 18 minutes, 38 seconds Okay. So 51 was the opening you remember the opening figure actually or you know before we started recognizing EPCG was 86. Last year last fiscal in quarter 4 18:48 18 minutes, 48 seconds we had accounted for 35 which meant opening figure this fiscal was 51. I explained to you 5 68 so 19 crores 18:56 18 minutes, 56 seconds almost has been accounted for in this fiscal balance is still to be you know still to be recognized. So there's 32 19:04 19 minutes, 4 seconds EPCG which is shown as liabilities in my book which the moment I export more and more I'll keep recognizing to your 19:12 19 minutes, 12 seconds question how much would be recognized in this fiscal the RAM rates are already there with you if I if I get an opportunity to export more I'll 19:19 19 minutes, 19 seconds recognize more this year the balance will obviously flow through in the next year so maybe in the next four to six quarters this entire amount will come 19:26 19 minutes, 26 seconds into books got it sir thanks a lot sir most. 19:33 19 minutes, 33 seconds Thank you. Ladies and gentlemen, in the interest of time and fairness to others, we request you to restrict to two questions per participant and rejoin the question queue. 19:45 19 minutes, 45 seconds We take the next question from the line of Kesha Bijay Ratan Laoti from HDFC Securities. Please go ahead. 19:53 19 minutes, 53 seconds Uh sir, as you highlighted you know 8.5 K power subsidy which you recognize this quarters. So this uh MDF margin it is 20:01 20 minutes, 1 second coming around 12% includes bad subsidy also which is more like one off in nature. It's a fair assumption. Yes. Yes it does. 20:09 20 minutes, 9 seconds Got it. Got it. And one last question from my side. How are the tinder prices moved in this quarter and how what is the outlook for the same? 20:21 20 minutes, 21 seconds So side also sorry. So I I tried cover Yeah. So I tried covering it you know as 20:30 20 minutes, 30 seconds part of my my speech and also as part of the the answer that I gave just now. So what I'm what I said Kesha was the 20:37 20 minutes, 37 seconds trimmer prices month on month sequentially were dropping and this continued to be the trend till November mid November but then you saw winter 20:46 20 minutes, 46 seconds setting in in uh north and you saw heavy rainfall in Tamil Nad or Andra and therefore there was a bit of a spike 20:53 20 minutes, 53 seconds which came into play. Now for the last you know since January beginning we are seeing again prices coming down. I think we should also remember there was a play 21:02 21 minutes, 2 seconds of uh you know the timber recipes or the the way we mix timber at our end now to produce MDF. I think all of that is 21:09 21 minutes, 9 seconds playing together sequentially every single quarter we are getting savings. I think between quarter two quarter three largely counting in everything in we 21:17 21 minutes, 17 seconds were more or less at par. Right now to your questions on resins or chemicals. 21:22 21 minutes, 22 seconds Generally uh like I mentioned there was some supply challenges in quarter two because of which the prices had hardened 21:30 21 minutes, 30 seconds from there. Every single month we are seeing prices come off. Um you know so there the I think the peak was sometime in October, November, early November and 21:38 21 minutes, 38 seconds thereafter the prices have continued to come down. Today we are pretty stable. Okay got it. Thank you so much. 21:48 21 minutes, 48 seconds Thank you. We take the next question from the line of Yash Sonatria from Edelwise Public Alternates. Please go ahead. 21:57 21 minutes, 57 seconds Hi team. Thank you for taking my question on congratulation on good set of numbers. So like you already alluded 22:04 22 minutes, 4 seconds uh you took the price hit of I think 1.4%. 22:08 22 minutes, 8 seconds So I wanted to understand specifically for the south plant what was our price change like what was the decline specifically for the south plant. 22:21 22 minutes, 21 seconds Um so we don't look at it like south and north anymore to be honest because we end of the day see the same plants are being used to service all locations. 22:30 22 minutes, 30 seconds There are certain uh see lines are today fungeible markets are again can be fed from both the plants. So wherever we can produce something at the best economics, 22:39 22 minutes, 39 seconds we go ahead and produce that product and supply it to the market. Right? So it's very difficult to specify what is the price for a particular plant today in 22:47 22 minutes, 47 seconds the current context. Uh but yeah, prices are you know the same wherever they come from whichever plan the end of the day the customer should get it at the same price. 22:58 22 minutes, 58 seconds Got it. Got it. And second like uh 1.4 Four was due to price realization decline and other was due to product 23:06 23 minutes, 6 seconds exchange. So was it because of the test production we did in our new plant or at least structurally consciously we are 23:15 23 minutes, 15 seconds taking the call to cater to more OEM because of the market scenarios. 23:20 23 minutes, 20 seconds So uh if you look at my domestic realization it was down one and a 1.4. 23:24 23 minutes, 24 seconds If you look at my export realization it was also down incidentally by the same proportion sequentially. Right? But when when you see my exports going up 23:33 23 minutes, 33 seconds automatically the blended realization appears to be two 2 and a2% lower right. 23:38 23 minutes, 38 seconds So um I think that should answer you know more importantly again between retail and OEM on the domestic front uh 23:45 23 minutes, 45 seconds as Shomanji mentioned OEM is what you know has you know there has been a volume up surge for sure right so that's 23:53 23 minutes, 53 seconds in a way so retail markets the discounts may not be in line with whatever we are giving to OEMs OM command a high a 24:00 24 minutes higher discount but but this is purely a function of demand to to answer your question you 24:07 24 minutes, 7 seconds know uh uh Today we are not in a position to pick and choose what we sell and uh who we sell to. At the moment the 24:15 24 minutes, 15 seconds focus because of uh surplus capacity both at the company level and in the market is uh you know to uh uh capture 24:24 24 minutes, 24 seconds any demand that is available is relevant of the product mix that it's offering. 24:30 24 minutes, 30 seconds Understood. And one last followup like if you can help me the channel mix Q3 FI 24:37 24 minutes, 37 seconds 25 and what is right now in Q3 FI26 between OEM and other channels. 24:43 24 minutes, 43 seconds So OEM is roughly 25% of the MDF domestic that we sell balance 75 is retail if you compare it by service 24:51 24 minutes, 51 seconds sequentially it was more or less similar last year I think 2 3% here or there. So retail I think last year was 77 77% off 24:59 24 minutes, 59 seconds and this year like I said it's already 75. Thank you. 25:07 25 minutes, 7 seconds Thank you. We take the next question from the line of Sneha Tala from Nuama. Please go ahead. 25:14 25 minutes, 14 seconds Hi evening team and thanks a lot for the opportunity. Uh just couple of questions. one you said that you know November and December you observed 25:22 25 minutes, 22 seconds incremental discounts coming up and that's where you had to increase discounting any signs that we are seeing for price increase happening in MDS if 25:30 25 minutes, 30 seconds not now when would we potentially see it uh SNA this will be purely speculation 25:38 25 minutes, 38 seconds if I have to answer this question to be honest with you so uh as of now if you ask me do I foresee any price increases 25:45 25 minutes, 45 seconds coming in uh answer would Um um probably not 25:53 25 minutes, 53 seconds understood. Uh secondly, for FI27 as a whole, of course, you've given guidance for this year. FI27 as a whole, uh you 26:01 26 minutes, 1 second know, given the current pricing, uh what's the kind of a volume growth that you're likely to see and any margin guidance there with the current pricing? 26:10 26 minutes, 10 seconds Uh I think we I think we will want to wait uh to see how quarter 4 pans out before giving a guidance. 26:20 26 minutes, 20 seconds Understood sir. Thanks. Thanks a lot. 26:21 26 minutes, 21 seconds That that's was about from my end. All the best team. Thank you. Thank you. 26:27 26 minutes, 27 seconds Thank you. We take the next question from the line of bars from invest. Please go ahead. 26:36 26 minutes, 36 seconds Hello. Hi sir. So thank you for the opportunity sir. I just want wanted one clarification to start with. Um so um if 26:43 26 minutes, 43 seconds I heard it right. Um so there was a EPCG benefit of 8 crores in Q3 and besides this uh we also booked a power subsidy 26:51 26 minutes, 51 seconds of 8.5 cr which was in our favor which is part of um IBIT IITA for MDF right 26:58 26 minutes, 58 seconds yes perfect so that was my question thank you 27:09 27 minutes, 9 seconds thank you ladies and gentlemen if you wish to ask a question Please press star and one. 27:24 27 minutes, 24 seconds Ladies and gentlemen, if you wish to ask a question, please press star and one. 27:30 27 minutes, 30 seconds We take the next question from the line of Anu from Anandrati. Please go ahead. Yeah. Hello, sir. Am I audible? 27:38 27 minutes, 38 seconds Yes, please. 27:39 27 minutes, 39 seconds Yes. So uh what is the volume growth target for Q5 FY F FY26 and FY27. 27:51 27 minutes, 51 seconds So um for uh well for Q4 as we said you know on an average we should have a mid to high teams volume growth on a on an 28:00 28 minutes annual basis and uh for FI27 we like to refrain from giving any projections till 28:07 28 minutes, 7 seconds the quarter for numbers are out please okay and what would be our MDF Aida margin guidance for FY27 28:17 28 minutes, 17 seconds uh that would again be dependent on the volume growth So uh as mentioned earlier we'd like to refrain from mentioning that at this point of time. 28:27 28 minutes, 27 seconds Okay. And uh whether the margin on export has become illucative due to weak rupee. 28:35 28 minutes, 35 seconds Uh it's improved uh uh so there's not been a I would say uh an any material price reduction on the export side. So 28:43 28 minutes, 43 seconds yes uh because of uh a higher rupee value against the dollar uh it's improved slightly. Yes. 28:52 28 minutes, 52 seconds Okay. Uh also uh can you uh specify uh uh what would be the sustainable AIDA margin for MDF? 29:05 29 minutes, 5 seconds Uh well in my opinion with proper utilization proper product mix uh you 29:12 29 minutes, 12 seconds know it teams is very much possible up to 20%. 29:18 29 minutes, 18 seconds Okay and sir last question uh like what is the export margin in Q2 uh Q3 and how 29:26 29 minutes, 26 seconds it is likely to be in the coming quarters? 29:30 29 minutes, 30 seconds Uh Himmanu do you have that papa? I don't I mean see I think Anu you need to realize that you know we look at exports 29:38 29 minutes, 38 seconds as a filler right to do more volumes at a more consistent uh you know just to ensure that my capacities are running 29:46 29 minutes, 46 seconds optimally right yes we produce contribution which is what I look at you know sales my sales price minus the variable do I make money or not and then 29:55 29 minutes, 55 seconds obviously there's an upside in terms of early recognition of EPCG right so I think these are the advantages which exports offer and uh this is something 30:03 30 minutes, 3 seconds that we monitor uh you know that's I think that's something that we can say okay 30:10 30 minutes, 10 seconds thank you thank you so much thank you ladies and gentlemen if you 30:17 30 minutes, 17 seconds wish to ask a question please press star and we take the next question from the line of Patanjalisan 30:24 30 minutes, 24 seconds from Sundam Mutual fund please go ahead uh thank you for the opportunity uh I have a couple of questions So firstly 30:32 30 minutes, 32 seconds the new plant coming up uh utilizations have dropped quite a bit uh at a company level and uh what level would uh the 30:42 30 minutes, 42 seconds plant be operationally like aida positive and uh how uh where are we today in terms of utilization at the new plant 30:51 30 minutes, 51 seconds okay um I'll take that sh so yeah yeah please utilization same time last year for Tangali were up roughly 66% without the new capacity coming into play, right? 31:03 31 minutes, 3 seconds You're right. With this new capacity, even on a on a holistic basis, all the three plants put together, my capacity utilizations have been almost similar, 31:12 31 minutes, 12 seconds right? So, we we've done uh 63 64% capacity utilizations in this quarter on a production basis. Now, now uh you 31:21 31 minutes, 21 seconds know, are we absorbing all the fixed costs already? We are. The new line is running very well. uh you know all the three lines put together like I 31:29 31 minutes, 29 seconds mentioned we are already 63 64 and the new line is also more or less similar right so so uh you know we are already 31:37 31 minutes, 37 seconds making money positive abitas on all the three lines okay and uh uh you didn't mention about 31:47 31 minutes, 47 seconds what the utilization levels would be at the plant sorry I I missed uh yeah what 31:54 31 minutes, 54 seconds the utilization level will be at the new The new plant is already operating at a 60% capacity. So no problem. All the 32:02 32 minutes, 2 seconds three lines like I mentioned to you are round about the same. So we today we are agnostic. You know any demand which comes in we look at which line can 32:10 32 minutes, 10 seconds produce and feed the demand at the right economics. Right? So you know wherever we can feed whichever way you know we feed looking at overall economics. 32:22 32 minutes, 22 seconds Okay. So uh just just for everyone's understanding uh you know basically uh 32:29 32 minutes, 29 seconds barring very thin panels all three lines are capable of producing all the SKUs 32:36 32 minutes, 36 seconds that we offer to the market. So looking at the plant efficiency, looking at our production planning, looking at the 32:43 32 minutes, 43 seconds freight economics, we we choose on a uh you know uh there is a lot of variability on what we produce on on which line at any given point of time. 32:54 32 minutes, 54 seconds So if the line you know uh in entrepreneurship if line two is occupied with a certain product, we may choose to produce a line two product and a line 33:02 33 minutes, 2 seconds three just to surface it faster. uh you know if there is restrictions for the north plant we can produce those products in the south and still supply 33:10 33 minutes, 10 seconds if the economics work out. So u there's a lot of uh you know um let's say flexibility now that we have in our 33:17 33 minutes, 17 seconds production process. So it's not uh you know fair to look at one line's capacity alone because we may in intentionally 33:25 33 minutes, 25 seconds produce uh that line's product on another line if it's giving us better economics. 33:33 33 minutes, 33 seconds Got it sir. Uh okay and I just have one more question. I think couple of quarters back we had indicated about u 33:40 33 minutes, 40 seconds margins improving because we'll see uh deflation in raw material cost and uh uh timber related issues were there because 33:48 33 minutes, 48 seconds of a previous uh four five year back period where uh things were not great in terms of uh uh there was a delay in 33:56 33 minutes, 56 seconds terms of availability of wood and all of that but u that will all ease towards Q3 and uh can you tell me like uh how much 34:04 34 minutes, 4 seconds of it is translated because I do get a sense that you mentioned that by December there was a decrease in cost but uh there was an increase in cost 34:13 34 minutes, 13 seconds because of some seasonality and now it's again falling but uh would we see like a fair bit of decrease here in terms of 34:20 34 minutes, 20 seconds cost and also what would be a uh raw mat mix between um resin cost and timber cost. 34:27 34 minutes, 27 seconds See I think you know Patanjali the uh you know margins you know are a mix of or a derivative of two things. one is 34:35 34 minutes, 35 seconds how do we behave or how competition more importantly behaves in the market apart from the supply demand economics on pricing. So I think you know uh maybe a 34:45 34 minutes, 45 seconds few quarters back pricing was not such a big or or let me say we were disciplined. Today we are behaving the way competition wants us or allows us to 34:54 34 minutes, 54 seconds behave. So therefore you you have seen some price reductions coming into play uh to ensure that we have enough volume 35:02 35 minutes, 2 seconds uh you know uh you know we sell enough volume we produce and sell enough volume. Uh the second piece is on cost. 35:08 35 minutes, 8 seconds I did mention seasonality but like I also mentioned my cost of production sequentially was more or less similar uh between quarter 2 and quarter 3. uh if 35:17 35 minutes, 17 seconds the cost environment also becomes more conducive I'm sure that is the margin that we can keep with us right unless 35:24 35 minutes, 24 seconds the market uh becomes more aggressive and they start discounting so so I think for now I think the the conclusion is my 35:32 35 minutes, 32 seconds gross margins today are at 50%. Um I think you know in this quarter I think you know so it's a little difficult for 35:40 35 minutes, 40 seconds us to preempt but costs remaining where they are pricing remaining where they are at least we should be able to do whatever margins we have been doing now. 35:50 35 minutes, 50 seconds Yeah, I wanted split between uh resin cost and timber cost. 35:54 35 minutes, 54 seconds So, it's a so I would say chemicals, you know, and I'm saying chemicals and timber of my uh of my ROMAT cost would be roughly 50/50 today. 36:06 36 minutes, 6 seconds Got it. Okay. Sure. Thank you so much. 36:12 36 minutes, 12 seconds Thank you. We take the next question from the line of Pravin Sahai from Prau Siladar Capital. Please go ahead. 36:20 36 minutes, 20 seconds Yeah. Hi sir. Uh thank you for opportunity. Uh the first question is related to the volume and uh this 36:28 36 minutes, 28 seconds quarter uh uh the 17% of a volume as a whole or 19% domestic and especially in the domestic 19% last year the 36:37 36 minutes, 37 seconds commercial grade volume were also uh you know accounted and if I exclude that the growth in the domestic is nearly around 45%. 36:46 36 minutes, 46 seconds So uh for a fourth quarter y we you are guiding for a mid teens kind of a growth whereas second quarter and third quarter 36:55 36 minutes, 55 seconds we had seen x of a commercial grid growth has been very good. 37:01 37 minutes, 1 second Uh so I think you know what Shoubenji mentioned was for the full FY 2026 number right uh Pravin so he said I 37:10 37 minutes, 10 seconds think if I heard him correctly he said mid medium to high teen growth in MDMA volumes overall this is what we we said 37:19 37 minutes, 19 seconds and uh please do remember in quarter one by volume there was a degrowth which happened so we're counting that in and saying that overall for the full year 37:27 37 minutes, 27 seconds the revised guidance what what we shared in October November holds to do today as well. This is what we meant. 37:36 37 minutes, 36 seconds Okay. Okay. Uh so that clearly indicate that's the higher growth in the fourth quarter. 37:46 37 minutes, 46 seconds Is it understanding right sir? I spelled it out for you. I said yeah. Yeah. 37:53 37 minutes, 53 seconds Uh sec second thing sir on the margin. 37:56 37 minutes, 56 seconds uh so because in the presentation you had mentioned MDF margin of 11.9% and which is uh uh excluding oneoff so 38:05 38 minutes, 5 seconds you have one of uh uh this uh the the power subsidy also one off in that post 38:13 38 minutes, 13 seconds that 1149 no so no other operating income includes the impact of this 8 and a half right uh 38:20 38 minutes, 20 seconds but this was always power it was related to power it was always accounted for in the past periods in that Okay. Yeah. 38:26 38 minutes, 26 seconds Till the time we were accounting. So, so it is already there, right? But one of essentially mean FX, you know, if I were 38:33 38 minutes, 33 seconds to ask, if I were to answer this, FX has been a bigger consequence for us this year as a whole, right? And that's the 38:41 38 minutes, 41 seconds larger one of which has been excluded when I say operating a got it sir. That was my questions. Thank you and all the best. 38:50 38 minutes, 50 seconds Yes. Thank you. Thank you. 38:55 38 minutes, 55 seconds Ladies and gentlemen, as there are no further questions from the participants, I now hand the conference over to the management for their closing comments. 39:04 39 minutes, 4 seconds We thank everyone for joining this call and we look forward to speaking to everyone at the end of next quarter and 39:11 39 minutes, 11 seconds the financial year and if anyone has any further questions, please do not hesitate to reach out to us. Thank you very much and have a good evening. 39:20 39 minutes, 20 seconds Thank you. 39:21 39 minutes, 21 seconds Thank you, sir. On behalf of Green Panel Industries Limited, that concludes this conference call.