Havells India Limited — Q4 FY26

Havells India Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=KOKcGnI7Mc8 Published: 3 weeks ago

0:00 Ladies and gentlemen, good day and welcome to the Q4 FY26 earnings conference call of ALS India Limited. As 0:08 8 seconds a reminder, all participant lines will be in a listen mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:18 18 seconds Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that 0:27 27 seconds this conference is being recorded. I now hand the conference call over to Mr. 0:31 31 seconds Omar Mata from Kotuk Securities. Thank you and over to you. 0:37 37 seconds Thank you Steve. On behalf of Kotuk securities, we welcome you all to Q4 FIR 26 and FY26 results conference call of 0:45 45 seconds Havs India Limited. We have with us today the senior management represented by Mr. Anil Gupta, chairman and managing 0:54 54 seconds director, Mr. Mr. Rajesh Kumar Gupta wholetime director and group CFO Mr. 0:59 59 seconds Amit Kumar Gupta whole time director and Mr. Rajiv Goyer executive director now I hand over the call to Mr. Anil Gupta for 1:07 1 minute, 7 seconds his initial comments and then we will open the floor for Q&A. Thanks and over to you an sir 1:14 1 minute, 14 seconds you thank good for ending today's call we hope you would have reviewed the results and now we'll now walk you 1:21 1 minute, 21 seconds through the key high overall performance quarters offer cool product was backed by my start to the 1:30 1 minute, 30 seconds season momentum in industrial infrastructure categories remain strong however categories 1:38 1 minute, 38 seconds cost three predominant driven fires arising from recent global disruption. 1:45 1 minute, 45 seconds We have stepped up our advertising investments and brand still grow and over 1:54 1 minute, 54 seconds on the profitability front margins held well except loyal which was impacted due to lower revenues. We continue to 2:02 2 minutes, 2 seconds navigate cost special pressure actions have also been initiated. 2:10 2 minutes, 10 seconds Our renewable energy initiatives continue to scale as you 2:17 2 minutes, 17 seconds recently release investments. Uh this investment allows us to leverage Goldie's solar module manufacturing capabilities to expand our solar port. 2:27 2 minutes, 27 seconds Additionally, get in the value gain of 283 crores on this investment. The gain is reported 2:36 2 minutes, 36 seconds under other income for the quarter to present the refrigerator segment. We 2:44 2 minutes, 44 seconds have invested in setting up a new refrigerator plant at Gilot. During the quarter, the capacity was commissioned and a refreshed product was launched. 2:53 2 minutes, 53 seconds After on of season now seeing signs of pick up in demand for cooling products we remain optimistic on a revival of 3:01 3 minutes, 1 second summer demand while closely tracking and its impact. 3:08 3 minutes, 8 seconds We now move to Q&A. Thank you. 3:16 3 minutes, 16 seconds We will now begin the question and answer session. 3:20 3 minutes, 20 seconds Anyone who wishes to ask a question may press star and one on their touchstone telephone. 3:26 3 minutes, 26 seconds If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. 3:37 3 minutes, 37 seconds Ladies and gentlemen, we will wait for a moment while the question queue assembles. 3:57 3 minutes, 57 seconds The first question comes from the line of Ravi Swami Natan with Aventus Spark. Please go ahead. 4:04 4 minutes, 4 seconds Uh hi sir, thanks for taking my question. My first question is with respect to the cables and wire segment. 4:09 4 minutes, 9 seconds Uh during the quarter we had registered a 14% growth. uh if you look at the copper prices I think year on year it would have increased by a much higher 4:17 4 minutes, 17 seconds number. uh so had we seen a decline in terms of volumes uh at a cable and wire 4:24 4 minutes, 24 seconds segment level if so why was it uh so and uh was it just related to dealer uh 4:31 4 minutes, 31 seconds restocking alone or the end market was also on the weaker side if you can give some clarity on that. 4:39 4 minutes, 39 seconds Yeah thank you very much. Um yeah uh so the phone is working and sir your voice is cracking a bit sir. 4:49 4 minutes, 49 seconds Okay I'm I'm a bit surprised. Can you hear me now? Yeah it's better now. 4:56 4 minutes, 56 seconds On an overall basis, the volume grows when the industrial cable segment has 5:03 5 minutes, 3 seconds grown much faster than the domestic wire segment because in the quarter 5:09 5 minutes, 9 seconds these things were in domestic and very high base last year. If you remember 5:16 5 minutes, 16 seconds fourth quarter of 2020 25 saw a major increase in fourth quarter hence was 5:24 5 minutes, 24 seconds during the fourth quart there was some amount of uh price correction copper in 5:30 5 minutes, 30 seconds copper before the war and hence overall down. 5:37 5 minutes, 37 seconds So you see uh uh wire segment remained 5:42 5 minutes, 42 seconds um uh flat but the cable segment has okay and uh with respect to the uh other 5:52 5 minutes, 52 seconds two se uh couple of other segments one is AC and fans uh how much amount of price increase we would have taken over the past few months to compensate for 6:00 6 minutes the raw material price increase uh in both these products if you can highlight that and how much are likely to take 6:09 6 minutes, 9 seconds price are continu increase happen due to the energy 6:18 6 minutes, 18 seconds efficiency ratings change during the quarter and then post 6:29 6 minutes, 29 seconds war uh February 24 there is increase of uh raw material prices including other 6:37 6 minutes, 37 seconds uh so I would start from till April there is calibrated price increases 6:44 6 minutes, 44 seconds happening uh not only in France but in our order given right 6:57 6 minutes, 57 seconds uh thanks sir thank you the next question comes from the line of 7:06 7 minutes, 6 seconds Jan with Philip Capital. Please go ahead. 7:10 7 minutes, 10 seconds I think here is that. 7:18 7 minutes, 18 seconds Should we should we do on some other number or you can call on my mobile number? 7:29 7 minutes, 29 seconds Yes. Just a second. I'll connect on that. Okay. 7:42 7 minutes, 42 seconds Yes sir, you can continue. Yeah. Can you hear me? Oh, yes sir. 7:51 7 minutes, 51 seconds Should I go ahead with my question? Yeah. 7:54 7 minutes, 54 seconds Yeah. Thank you. Uh sir, so since your line was not clear, I'll just repeat one question I had incremental in terms of wires and cables. You mentioned that the 8:03 8 minutes, 3 seconds volume has been flat but margin increase has been very sharp. So could you point out uh what could be attributed to inventory gains and if there's any mixed 8:12 8 minutes, 12 seconds change that has led to such a sharp margin spike despite volume deg growth. 8:18 8 minutes, 18 seconds No, I think uh you know I would say rather than just looking at this particular quarter because there is usually in this quarter uh year end uh 8:27 8 minutes, 27 seconds um you know adjustments also because of the final dealer incentives and all but overall uh there were inventory gains 8:36 8 minutes, 36 seconds because of copper and aluminum as well but um you know volume growth was only 6% not flat but volume growth was 6%. 8:45 8 minutes, 45 seconds And but um we have seen slight degrowth in domestic fire segment but much higher growth in the industrial segment. 8:57 8 minutes, 57 seconds Understood. 8:58 8 minutes, 58 seconds Okay. All right. Um my second question is on lighting. Now revenue there again has been broadly flat but margin has 9:07 9 minutes, 7 seconds been margin has increased extremely sharply. your contribution stands at 37 and you've mentioned in your 9:15 9 minutes, 15 seconds presentation that the long-term average is 30 32%. So does that mean that there is some one-off even in writing and that 9:22 9 minutes, 22 seconds should normalize to 30% levels going forward? Yeah, you can you can take that as well. 9:28 9 minutes, 28 seconds As I said during the year sometimes in the fourth quarter there are certain year end releases uh and that is for the 9:36 9 minutes, 36 seconds entire year. So you know one can say key on an average you can expect 32 32% but sometimes uh the first three quarter 9:44 9 minutes, 44 seconds releases also happen in certain cases sometimes it's the other way around but in writing this has happened and so uh I 9:51 9 minutes, 51 seconds would say a long-term uh would be 30 to 32%. 9:57 9 minutes, 57 seconds And so this is even despite the fact that ASD decline has stabilized. That is what is mentioned in the PPT. 10:04 10 minutes, 4 seconds That's right. That's right. 10:06 10 minutes, 6 seconds Got it. And so one last quick question in terms of Lloyd um fourth quarter we understand that the summer was bad and in fact it continued probably till beginning of April. 10:16 10 minutes, 16 seconds Could you throw some color how the channel inventory right now is and a little color on selling and sellout both? 10:23 10 minutes, 23 seconds I think uh your um analysis is absolutely right. The first half of April was also slow. Uh so there were 10:32 10 minutes, 32 seconds some channel inventories but now it's evening out and uh you know south and west have started uh you know a good 10:40 10 minutes, 40 seconds summer and I think it's now coming in the north as well. So hopefully by the end of this month uh there will be normalized inventories at this level of Minnesota. 10:51 10 minutes, 51 seconds Understood. Thank you so much sir. All the best. Thank you. 10:57 10 minutes, 57 seconds Thank you. The next question comes from the line of Rahul Aarwalik guy. Please go ahead. 11:04 11 minutes, 4 seconds Hi. Very good evening. Thank you so much for the opportunity. Sir, couple of questions. Firstly on outlook for fiscal 27 both on volume and revenue growth. 11:14 11 minutes, 14 seconds You know given that fourth quarter has ended weak. Uh my sense is should we expect double grid volume growth plus some tricycles into FY27? Any outlook could you share please? 11:24 11 minutes, 24 seconds In today's environment uh what what do you expect an answer from me? You know 11:31 11 minutes, 31 seconds we have just uh looking at monthto month uh you know who knows where the wall goes uh how the I mean okay we are 11:40 11 minutes, 40 seconds seeing sharp increases in price uh prices for most of the product categories. So how much will volume growth be it is difficult to say at this 11:48 11 minutes, 48 seconds point of time and uh you know I'm not even talking about the summer but the kind of sharp increases in prices can 11:56 11 minutes, 56 seconds you know hopefully it should not but if it starts affecting the demand also so that's something which will have to be seen you know as we operate see I and 12:05 12 minutes, 5 seconds maybe this is for other qu people's questions also at this point of time it is very difficult to say what the growth will be we are very positive hopeful the 12:14 12 minutes, 14 seconds summer started off at a good note. Um but the uh uh the demand is yet to be 12:23 12 minutes, 23 seconds seen and our focus will be to continue to strive towards getting more efficiency. If you have seen we have 12:30 12 minutes, 30 seconds also you know uh uh continue to invest heavily on our brand building activities which clearly indicates that we are in 12:38 12 minutes, 38 seconds here for a longer period of time and it's very difficult to you know predict short-term ups and downs. 12:45 12 minutes, 45 seconds the base case you know even if you do like mids single digit volume along with the price hike we should still reach like mid double digits next year right 12:53 12 minutes, 53 seconds in terms of value growth is that a reasonable assumption as I said it right now I would I would 13:00 13 minutes not be it would not be right for me to give any number okay okay no problem sir secondly on the margin side you know given various 13:08 13 minutes, 8 seconds amount of price hikes and you know what we are seeing on the RM inflation side should we assume that whatever RM 13:15 13 minutes, 15 seconds inflation, forex issues, uh in terms of cost inflation we are seeing most of that is actually passed through and there should uh you know the entire 13:23 13 minutes, 23 seconds absorption is actually uh getting done from h side is that understanding correct it we are striving to do that uh 13:32 13 minutes, 32 seconds you know again we are in a not we are in a competitive world and we have to see how it holds up we are striving to pass 13:39 13 minutes, 39 seconds on the cost but uh you know um Again as I said we have to compete in the market. 13:45 13 minutes, 45 seconds Our focus will also be to retain or gain market share. So we'll just uh you know play a balancing game here. 13:53 13 minutes, 53 seconds Right sir and last question sir on the afterale service uh my sense is we've seen a lot of premium product launches 14:00 14 minutes across all segments from hls over the last six months. When we have look at your website uh you know a lot of new products are actually launched. uh just 14:08 14 minutes, 8 seconds to understand that I think from a technician perspective whoever services the customer from a after sales perspective is largely the same team for 14:17 14 minutes, 17 seconds premium as well as mass segment products. Is it is it really possible to have a separate team for luxury and premium products so that the customer 14:24 14 minutes, 24 seconds experience is not compromised? Any thoughts on this? 14:28 14 minutes, 28 seconds I think these are very operational issues which we continue to you know uh ensure that we will give the best service to the consumer but these are 14:37 14 minutes, 37 seconds very operational issues and part of a you know one part of the business and I think you know no there's no point of us 14:44 14 minutes, 44 seconds you know to spend time on this on this call but the but what you are saying is our uh you know our objective is to 14:53 14 minutes, 53 seconds continue to give the best service as well as best customer experience always but it's good to know it's good to know 15:01 15 minutes, 1 second that you noticed that is coming out with premium products uh that is a reflection of our continued investment in uh 15:10 15 minutes, 10 seconds innovation sir thank you so much I'll get back in with you all the best 15:19 15 minutes, 19 seconds the next question comes from the line of Anera Jooshi with ICICI please go ahead Yeah. Uh so thanks for the opportunity. 15:30 15 minutes, 30 seconds Uh and solar business uh so we have seen almost 48% growth in other segment and uh even the 15:38 15 minutes, 38 seconds abit margin has also seen a good expansion. So if you can share more uh details on the solar business means uh 15:47 15 minutes, 47 seconds have reached a uh uh uh in a way normalized run rate or there is a still good scope to uh potentially grow in 15:55 15 minutes, 55 seconds this business mean how long this growth rate can sustain and again margins of solar business have they reached to a 16:02 16 minutes, 2 seconds optimal level or there is a further scope to see margin expansion in uh solar business also that is uh question 16:10 16 minutes, 10 seconds number one and u in terms of question uh two uh uh as far as the uh volume growth 16:19 16 minutes, 19 seconds in fans, coolers uh as well as refrigerators. So how it uh uh would have planned out because probably there 16:27 16 minutes, 27 seconds was no excess sale in December for these products. So have they also seen some impacts on volumes or uh is there uh healthy growth in uh these products? 16:38 16 minutes, 38 seconds Yeah, thanks. 16:41 16 minutes, 41 seconds So in your first question on solar, I think um most of the uh growth that you see in the other segment is coming out 16:48 16 minutes, 48 seconds of solar and you see the way to look at it is that uh you know we are building capacities both in industrial cables as 16:56 16 minutes, 56 seconds well as solar solar through an investment in because of uh the assured 17:03 17 minutes, 3 seconds supplies more capacity that we have we're able to take advantage of the tailwinds that are there in these two 17:09 17 minutes, 9 seconds segments and um going forward also uh you know in the coming years also we we do feel that there is enough opportunity 17:17 17 minutes, 17 seconds in the solar segment to continue to grow but we'll be also expanding our product ranges in the entire renewable space uh 17:24 17 minutes, 24 seconds in coming times. So uh again difficult to say about the margins. One of course volumes will benefit but you know it is 17:32 17 minutes, 32 seconds a competitive space and we we also need to see our market shares growing and also uh we'll try and you know maintain 17:39 17 minutes, 39 seconds or increase margins through better product additions and expansion of the product range in the renewable space. 17:46 17 minutes, 46 seconds That's what we're looking for. Um as far as the second question I think in uh fans in the third quarter there was an u 17:55 17 minutes, 55 seconds uh there was a change in the B norms. So there was some stocking in the end of the third quarter and which impacted 18:03 18 minutes, 3 seconds some volumes in the fourth quarter but also because the seasonality aspect also came in in the fourth quarter. So hopefully we should be seeing better volume growth in the first quarter. 18:14 18 minutes, 14 seconds Uh sure sir but um in terms of monsoon like last year also was impacted by monsoon. So logically the impact of 18:22 18 minutes, 22 seconds monsoon this year is probably less compared to what it was last year. So on on that favorable base uh uh should all 18:31 18 minutes, 31 seconds these segments uh report uh strong growth or still the impact is so high of monsoon this time also that uh we are still seeing some impact uh of monsoon. 18:43 18 minutes, 43 seconds No, it's difficult to predict what will happen in the monsters but you are right last year was a low base so we should be seeing good growth in the in this year. 18:54 18 minutes, 54 seconds Okay. And any internal uh target estimates that the company would be working on the summer products that uh you can share uh with us. 19:08 19 minutes, 8 seconds May I think uh we do not give any guidance on the numbers and frankly in this scenario you know we are hoping for a faster growth as as I've already said 19:17 19 minutes, 17 seconds in summer products last year was a very low base so we hoping to get a good growth in the in this first quarter 19:25 19 minutes, 25 seconds okay so just last question the weighted average price hike at the company level would be more than 10% is it a fair 19:32 19 minutes, 32 seconds assumption no I think we would like to see it uh that in many product ranges it ranges between 5 to 10 uh 5 to 20%. 19:46 19 minutes, 46 seconds Okay. Sure sir. Sure. Thank you. 19:51 19 minutes, 51 seconds Thank you ladies and gentlemen. In order to ensure that the management is able to address questions from all participants, 19:58 19 minutes, 58 seconds please limit your questions to two per participant. 20:03 20 minutes, 3 seconds The next question comes from the line of Pala Subramanyam with Aryan Capital. Please go ahead. 20:09 20 minutes, 9 seconds Good evening sir. Uh thank you so much for the opportunities. Sir trade receivables uh fallen uh drastically from,254 cr to 782 cr almost 38%. 20:22 20 minutes, 22 seconds Uh even data days it used to be 20 or 21 range in last 5 years but right now it's came to 30 days. So I'm trying to 20:30 20 minutes, 30 seconds understand uh this is majorly because of faster collections or change in payment terms with the distributors and how do 20:38 20 minutes, 38 seconds you understand uh in upcoming years normally the last day we are through 20:49 20 minutes, 49 seconds channel payment terms of the depending upon the 20:58 20 minutes, 58 seconds mix sometimes these things happen but I think you should keep them as normalized or normal and not not take them something you see is the exceptional 21:06 21 minutes, 6 seconds happening in this particular March quarter. 21:10 21 minutes, 10 seconds Okay sir. Uh sir on the ECD side in Q3 is majorly uh described as largely 21:20 21 minutes, 20 seconds yes sir on the ECD side uh uh in Q3 is majorly described uh largely volume 21:26 21 minutes, 26 seconds trace led price but in Q4 we saw volume decline 21:33 21 minutes, 33 seconds but there is no major price reversal so I'm trying to understand uh if you could share volume growth or deg growth for 21:41 21 minutes, 41 seconds fans, water heaters and for for Q4. 21:51 21 minutes, 51 seconds Yeah, we we don't give separate volume details for uh fans and water heaters. 21:59 21 minutes, 59 seconds Um so but as I said overall there was a degrowth uh in value terms in uh fan 22:05 22 minutes, 5 seconds segment uh because of the initial push in the third quarter because of the energy efficiency and a delayed um summer as well. 22:17 22 minutes, 17 seconds Okay sir. Thank you. 22:23 22 minutes, 23 seconds Thank you. The next question comes from the line of Satara Bara with Nomra. Please go ahead. 22:30 22 minutes, 30 seconds Thanks for the opportunity sir. Sir, first on Lloyd, I mean uh can you highlight broadly how much price hikes have we taken till now and uh how much 22:39 22 minutes, 39 seconds is required uh to sort of go back to that double digit contribution margin levels which we had last year work in progress. 22:50 22 minutes, 50 seconds any price hike sir if you can quantify how much is more needed or how much taken you know as 22:59 22 minutes, 59 seconds we have already said that there were quite a few price rise especially in case of lawyers because of the energy efficiency change you know the three 23:08 23 minutes, 8 seconds star fivestar change so a lot of that happened during uh Jan to March and now you know as it because I I said work in 23:16 23 minutes, 16 seconds progress because now we're really seeing the impact of the cost increases post war. So that is now being passed on. So there is a work in progress but it's you 23:25 23 minutes, 25 seconds know it ranges between at least 8 to 15%. Depending upon the okay and on the cable and wire side I 23:33 23 minutes, 33 seconds mean we uh what will be the utilization levels of the new uh cable plant which we started and I think phase two should 23:42 23 minutes, 42 seconds come sometime this year as well. So if you can just uh give us some color on that as well. 23:47 23 minutes, 47 seconds So right now you know whatever capacities got added we've we've been uh still operating at high capacity utilization and more capacities will 23:56 23 minutes, 56 seconds come up as you rightly said during the year. So hopefully by the end of this year early next year first quarter we'll be having the entire capacity which was planned. 24:06 24 minutes, 6 seconds Understood sir. Okay thanks a lot. I'll come back now. 24:15 24 minutes, 15 seconds Thank you. The next question comes from the line of Adita Barta with Invest. Please go ahead. 24:23 24 minutes, 23 seconds Um, hi, good evening sir. Um, so given that some of these price increase announcements uh for fans and uh room 24:30 24 minutes, 30 seconds ACEs could have been made by March end, did we not see any element of pre-bying um uh given the sharp price increases 24:38 24 minutes, 38 seconds that you would have announced? That's my first question. Uh and the second question is uh just on the other segment margins that we are seeing in the other 24:45 24 minutes, 45 seconds segment is it that is it operating leverage benefits that are now starting to help us uh and in that context should 24:52 24 minutes, 52 seconds we expect uh high teams kind of uh contribution margins to be sustainable from here on the first part yes there was some pre- 25:00 25 minutes buying in March especially in the cooling products and uh but uh you know generally that is the case also in uh 25:08 25 minutes, 8 seconds most of the years because it's also the upcoming season time for April and May. 25:12 25 minutes, 12 seconds So, but that was also uh you know accentuated by the fact that the price increases were happening. Um and uh you 25:21 25 minutes, 21 seconds know again as I said you know it's right now solar is uh sunrise industry for us we are we are uh evaluating this we are 25:30 25 minutes, 30 seconds our major focus is to g continue to gain market shares and you know get the tailwinds of this industry and uh 25:38 25 minutes, 38 seconds difficult to say what the you know final margins will be but they will continue to improve as you rightly said about uh 25:44 25 minutes, 44 seconds the operating margin operating leverage Perfect. That's helpful, sir. Thank you so much. 25:55 25 minutes, 55 seconds The next question comes from the line of Reu Bait with IFL Securities. Please go ahead. 26:02 26 minutes, 2 seconds Yeah. Hi. Uh good evening sir. Um so my first question is uh you did allude to the fact that current environment has been extremely difficult to predict um 26:11 26 minutes, 11 seconds and you have been looking at the business on a month-on-month basis. But going by your experience of how consumption and consumer demand has been 26:20 26 minutes, 20 seconds uh given the steep inflationary pressure across board across segments and categories uh do you think consumer offtake in broad um is likely to remain 26:29 26 minutes, 29 seconds slightly um muted um in the near term say the next couple of quarters and the entire thesis of expectation and 26:37 26 minutes, 37 seconds recovery and consumption is getting prolonged. 26:40 26 minutes, 40 seconds Yeah. I have not seen this kind of a you know uh price escalation in the recent past in the recent memory. Um you know 26:49 26 minutes, 49 seconds usually it happens but it is not so steep and not across all product categories. Sometimes there are more fluctuations in the previous environ but 26:58 26 minutes, 58 seconds this this time we have seen across six share or for so while we are very hopeful of the overall structural things 27:07 27 minutes, 7 seconds which have happened within India as well as within average but ultimately it is you know we are uh bound by the fact 27:15 27 minutes, 15 seconds that you know uh the consumer can consumer optic can get affected if if the price hike is too high. Let's let's 27:24 27 minutes, 24 seconds see how it pans out. Let's how the war pans out and hopefully we should have some insight in the coming uh months. 27:32 27 minutes, 32 seconds But for us the priority would be to ensure to retain the market shares are retained or improve in the current environment even if um it remains slightly challenging. 27:42 27 minutes, 42 seconds Yeah. I mean usually we have tried to be you know more efficient during these times and more efficiency leads to market share gains. So our investments 27:51 27 minutes, 51 seconds continue to be there whether it is in innovation whether it is in brand building distribution reach also so our 27:58 27 minutes, 58 seconds reach and all these things those investments don't slow down uh during a uh tough period. 28:06 28 minutes, 6 seconds Got it. Um so secondly yeah which you know if we've seen in the past we if it means some pain in the short 28:13 28 minutes, 13 seconds term also but we are again uh we you know wanting to play a long-term game. 28:19 28 minutes, 19 seconds Absolutely. Um so looking at the capex brand in the last couple of years we really stepped up our investment plans across manufacturing facilities 28:26 28 minutes, 26 seconds particularly KUS and wires and Lloyd. Um so how should we look at um the investment plans for fiscal 2728? 28:35 28 minutes, 35 seconds uh any notable segments you would want to highlight um apart from the annual spend budgeted for the next two years. 28:43 28 minutes, 43 seconds Yeah, I think uh by by 2728 major expenses would major capex would go into cables and wires uh which is already 28:51 28 minutes, 51 seconds panned out and I think uh this is a lot of that is happening in this financial year also 800 crores. uh the rest is a 28:58 28 minutes, 58 seconds big investment is going into the a new R&D center and that will happen over the next two two and a half years um the 29:06 29 minutes, 6 seconds rest uh uh you know there is no major new capex in the Lloyd segment got it and this lastly linked with the 29:14 29 minutes, 14 seconds cables and wires um we recently um gathered that um one of the large player um with presence on the cement side who 29:22 29 minutes, 22 seconds was pouring into cables and wires have preponed their entry into the housing wire market by a quarter or two. Um so do you think in the current environment 29:30 29 minutes, 30 seconds where the market is struggling but on the volume side a large entrance entering in the space um could have put incremental pressure on the existing peers um and the industry pricing trend. 29:41 29 minutes, 41 seconds Yeah. I mean generally speaking you know um cases in wire especially wires there 29:48 29 minutes, 48 seconds uh there has been a lot of consolidation in the past also from unorganized or regional brands or small brands to organized brands more and more this 29:57 29 minutes, 57 seconds industry has absorbed um newer players and I think going forward also uh companies which should continue to 30:05 30 minutes, 5 seconds invest in innovation brand building and distribution reach will will be the winners in this segment. So hopefully new new players will also come with the 30:13 30 minutes, 13 seconds right investment they'll they'll definitely gain some market share but some readjustments may happen within between with between the unorganized and organized sector. 30:23 30 minutes, 23 seconds Sure. And last question if I can ask um while you've always spent enough energies and money in terms of 30:29 30 minutes, 29 seconds distribution reach um across regions um north south are broadly taken care of um 30:36 30 minutes, 36 seconds how do you look to tackle the western region in terms of penetration for hs products x of cables and wired on the 30:43 30 minutes, 43 seconds B2C side um and any particular areas you would want to highlight to fill the gaps I would say that you know continues to 30:52 30 minutes, 52 seconds invest not only in the investing within but also uh certain parts of the southern markets like Tamil Nadu where market shares are lower as compared to 31:00 31 minutes other markets those investments are going both in distribution but also you know localized brand building as well. 31:07 31 minutes, 7 seconds So we are seeing uh you know good growth if we if we actually build down this growth into those areas where we are investing heavily towards we are seeing 31:16 31 minutes, 16 seconds good traction in these markets. So there's best all coming out. 31:20 31 minutes, 20 seconds Perfect. Um thanks much and best wishes to you. Thank you. Thank you. 31:27 31 minutes, 27 seconds Thank you. The next question comes from the line of Pravin Sh with PL Capital. Please go ahead. 31:35 31 minutes, 35 seconds Yeah, thank you for opportunity. Uh I have a two questions. So first is uh as you had highlighted uh the next uh you 31:42 31 minutes, 42 seconds know the investment focus area is towards the industrial whether it's a cable or renewable. So how we we are 31:50 31 minutes, 50 seconds going to see the B2B B2C mix evolve for the company in the next few years. 31:56 31 minutes, 56 seconds I think uh going in cables also underground cables is something where we are investing where we were uh to some 32:03 32 minutes, 3 seconds extent underinvested but uh uh you know in the past our B2C to B2B has remained 32:09 32 minutes, 9 seconds between 75 25 or 70%. We hopefully in the next couple of years we should continue to grow even in the B2C segment 32:19 32 minutes, 19 seconds especially they see a lot of lot of growth opportunity in um EPD. So definitely there's uh I think you know 32:27 32 minutes, 27 seconds there will not be a meaningful uh move from B2C to B2B. 32:33 32 minutes, 33 seconds Okay. Okay. And the next questions are related to the switch gear. Uh so it's highlighted that the margin impacted because of lag in the uh pricing of the 32:42 32 minutes, 42 seconds cost. So do we believe that in the coming quarters it is possible that we'll go back to our 38% of contribution margin? 32:50 32 minutes, 50 seconds Yeah, we are striving towards that. As I said in certain cases the cost increases are so high that we were we there was a 32:57 32 minutes, 57 seconds lag in passing on the entire price increase. We'll continue to strive towards moving there but I've also said that our eyes will also be on retaining 33:06 33 minutes, 6 seconds market share. It's not only you know also giving. So you know this is something which we have to see how it handles. 33:12 33 minutes, 12 seconds Yeah. Why I had asked that because that's the growth for the entire year for switch gear is also quite low. So uh it's more focused on the growth the way 33:21 33 minutes, 21 seconds forward or uh major uh target is to achieve our contribution margin. 33:26 33 minutes, 26 seconds I think it will always remain a balance between growth and profitability. Thank you sir and all the best. 33:33 33 minutes, 33 seconds Thank you. 33:36 33 minutes, 36 seconds The next question comes from the line of Pulkit with GS. Please go ahead. 33:43 33 minutes, 43 seconds Uh sir thank you for taking my questions and I have two questions for you. 33:48 33 minutes, 48 seconds First is in light of whatever is happening globally, can you just discuss any supply chain disruption that you 33:55 33 minutes, 55 seconds have faced or navigated? And secondly, is there a scenario right now likely 34:02 34 minutes, 2 seconds wherein again stronger companies like you emerge stronger given better supply chain controls etc in the current 34:10 34 minutes, 10 seconds environment? That's my question number one. 34:14 34 minutes, 14 seconds Right. On the supply side, there have been challenges over the last couple of months, especially more on the production side. Those have been 34:23 34 minutes, 23 seconds navigated and that's not to go into each detail, but those have been navigated on the raw material side as well as in the 34:30 34 minutes, 30 seconds production side due to um uh the gas supply. U going forward, we'll continue 34:37 34 minutes, 37 seconds to navigate those things. I think your question about whether stronger companies are in a better position to 34:45 34 minutes, 45 seconds manage not necessarily also in the supply chain but also continued investment and that's what we'll 34:51 34 minutes, 51 seconds continue to strive for um as I've already said innovation brand distribution we'll do that and uh you 35:00 35 minutes know have a long-term thinking rather than a short-term thinking uh you know I would I would rather say quartertoquarter thinking would not be 35:08 35 minutes, 8 seconds in our more of how do we continue to invest for the long term? 35:14 35 minutes, 14 seconds Sure sir. So my second question actually in relation to that only which is we have about 4,000 cr of capital now 35:20 35 minutes, 20 seconds deployed in lawyers which at this stage is barely generating any profitability. 35:26 35 minutes, 26 seconds If I was to look at this say further next two to three years what is going to be the strategy to get our returns 35:33 35 minutes, 33 seconds higher in that particular segment? you know is brand building going to be a continued focus is utilizing our 35:40 35 minutes, 40 seconds capacities the two factories that we have going to be the focus just some thought process about how should we look at capital returns on what you've 35:49 35 minutes, 49 seconds invested in lawyers so the biggest uh thing about any consumer oriented brand builders brand 35:56 35 minutes, 56 seconds oriented business is something where you know it's in it's an easier answer that you can't really say okay you know if I 36:03 36 minutes, 3 seconds have to fully utilize my capacity I'll lower down my price and you know start selling more. It doesn't really happen as you can very well understand it 36:11 36 minutes, 11 seconds requires long-term investment in brand building. So we our focus in Lloyd will continue to be towards bringing out 36:19 36 minutes, 19 seconds better products through innovation which means improving image through brand building and innovation for a better 36:26 36 minutes, 26 seconds margin and utilize the capacities that have been created for better operating leverage. So that's where the profits 36:33 36 minutes, 33 seconds will come from on higher sales due to capacity utilization, brand building as well as improved margins. So again as I 36:42 36 minutes, 42 seconds said it's you know it's everything put together but everything has to come together in certain period of time. It 36:48 36 minutes, 48 seconds can't come in very quickly and that's what we'll continue to invest for. 36:56 36 minutes, 56 seconds Sure sir. Useful. Thank you so much. 37:04 37 minutes, 4 seconds The next question comes from the line of Mr. Achelad with the Mama Institutional Equities. Please go ahead. 37:12 37 minutes, 12 seconds Yeah. Uh good evening sir. Thank you for the opportunity. Uh two questions sir. 37:16 37 minutes, 16 seconds Uh first uh if you could give us some sense if possible on the full year growth in terms of fan uh wires, water 37:26 37 minutes, 26 seconds heaters etc. Just trying to understand you know if if uh we have gained market share we have seen some market share 37:33 37 minutes, 33 seconds loss in any of the categories if you could highlight that fans I mean generally we don't give uh 37:40 37 minutes, 40 seconds product wise growth rates but fans we have degrone in the entire year so and that uh fans water heaters uh sorry fans 37:48 37 minutes, 48 seconds uh ACS and water coolers coolers there we have deownrown so that's what I can say uh but uh talking about market share 37:57 37 minutes, 57 seconds We do believe that we've been able to at least retain if not gain any of the category where you think you could have uh lost market share. 38:09 38 minutes, 9 seconds I don't believe so. 38:11 38 minutes, 11 seconds Understood. The second question I had uh you know just a top- down thoughts um from a from a positioning of our um 38:20 38 minutes, 20 seconds products uh would it be possible to get a sense in terms of the uh economy and mass premium and premium mix and uh like 38:29 38 minutes, 29 seconds are we are we underindexed in the volume segment where probably the growth is could be better and premium is facing a 38:37 38 minutes, 37 seconds challenge in terms of growth. Can you color on the segmentation uh uh at a broad level sir? 38:43 38 minutes, 43 seconds Uh a the look the strategy of the company I think uh the chairman just talked about how the long-term strategies are torn up. So I think 38:52 38 minutes, 52 seconds looking at a very shortterm lens I think we can't decide about the brand positioning. You are aware we have Rio we have heaven. So I think very low 39:01 39 minutes, 1 second segmentation we'll play but just because there could be volumes in the the lower end of the market and we even don't know 39:08 39 minutes, 8 seconds you see the the data is not really supporting that. So I think it's a brand position which has been painstakingly built over decades something you can't 39:16 39 minutes, 16 seconds really tinker with you see based on particular quarter or or a seasonality. 39:21 39 minutes, 21 seconds So this I think will continue to sort of support. Yes, there will be strategies how we play in every segment but not necessarily it could be played with a 39:29 39 minutes, 29 seconds single brand architecture and that's something in the market you are also aware how we are doing the same maybe more clarity in the in the future will 39:38 39 minutes, 38 seconds also be coming through we are also observing market very closely and uh but clearly there is a there is a ethos which brand stands for and I don't think 39:46 39 minutes, 46 seconds that should be altered purely on some quarterly considerations no understood just to clarify Raj G uh 39:54 39 minutes, 54 seconds The question was more from a annual stroke medium-term perspective, not really quarter at all. Um, you know, 40:01 40 minutes, 1 second because I Yeah. Yeah. Yeah. I just wanted to clarify is there a you know, uh, given given the positioning what we 40:09 40 minutes, 9 seconds have, given the category, the subsegment growth within the segment, you know, within a category, is there a constraint in terms of growing at a higher pace and 40:17 40 minutes, 17 seconds uh, there is a price difference gap between us and other brands have widened? Uh, is there a case for that? I was more coming from that perspective. 40:26 40 minutes, 26 seconds Yes. No, maybe it would be right. But I hope you appreciate this something what we do every day and based on as you said 40:33 40 minutes, 33 seconds brand ethos uh are built over decades even here actually is nothing in the overall history of a business and a 40:40 40 minutes, 40 seconds brand. Yes, I think your point understood but I think this is something we evaluate very closely that we can assume. 40:48 40 minutes, 48 seconds Fair point and just a clarification uh Anir um you know in the past calls you did uh highlight you know there is a possibility of uh over two percentage 40:58 40 minutes, 58 seconds point improvement in margin over medium term uh you know given what you have kind of uh highlighted um in the call 41:06 41 minutes, 6 seconds about renewed investments in the R&D and the uh N&P uh is there a change in that uh particular uh uh thought or um you 41:16 41 minutes, 16 seconds know that remains as No, that remains as is because we are continuing to uh you know wanting to be 41:23 41 minutes, 23 seconds more uh efficient uh get operating leverage out of better volumes. See the whole investment behind innovation and 41:32 41 minutes, 32 seconds brand building would be to um you know put in more innovative products at a premium to the consumer and hence get 41:40 41 minutes, 40 seconds better margins for the company. So again as I said shortterm there there may be um you know uh some pain but longterm 41:48 41 minutes, 48 seconds the whole idea is to you know have uh better growth and profitability. Through growth al also operating leverage will be coming. 41:58 41 minutes, 58 seconds Understood. Uh thank you so much for your answer sir. Wish you all the best. Thank you. 42:04 42 minutes, 4 seconds The next question comes from the line of Pratik Singh with Helios. Please go ahead. 42:16 42 minutes, 16 seconds I think your line has been unmuted. Please go ahead with the question. 42:27 42 minutes, 27 seconds Pratik Singh your line has been unmuted. Please go ahead with your question. 42:35 42 minutes, 35 seconds As there is no response, we'll move on to the next question. It's from the line of Natasha Jen with Philip Capital. Please go ahead. 42:43 42 minutes, 43 seconds Thank you so much for the followup. I just wanted to check you had said in terms of tables the volume growth is 6%. 42:50 42 minutes, 50 seconds And pricing is at I mean the value growth is at 14%. So just trying to do the math here. Uh is it just 8% price hike that you've taken? I think 42:59 42 minutes, 59 seconds relatively copper has substantially increased and even aluminium if I see even on a Y basis. 43:05 43 minutes, 5 seconds Yeah, this is what we are seeing over the quarter on quarter and uh if you recall there was actually a dip in uh 43:13 43 minutes, 13 seconds copper in the month of uh February the entire increase that you're seeing is post the war so that has uh actually 43:22 43 minutes, 22 seconds started increasing so yes so uh overall cables and volumes uh cable and wire 6% 43:29 43 minutes, 29 seconds volume growth and 14% a 6% volume growth is here on here. 43:36 43 minutes, 36 seconds Correct. Yeah, that's right. 43:40 43 minutes, 40 seconds And that that would leave us with 8% vended for cable and all right sir. Okay. Thank you so much. 43:53 43 minutes, 53 seconds The next question comes from the line of Ashish Canoria with city. Please go ahead. 43:58 43 minutes, 58 seconds Uh yeah thank you for the opportunity sir. So the first question is again on the cost side and investment in talent and capacity building. Uh when we look 44:06 44 minutes, 6 seconds at the fixed cost and this is you know across segments while FI25 you know there was a increase in fixed cost as you were investing in FI26 barring 44:15 44 minutes, 15 seconds cables and wires we have seen the fixed cost being broadly flat across all all other segments. Now when we and cable and wires partly is maybe because of the 44:24 44 minutes, 24 seconds capacity. So when you look at FI27 while you know as you said you know revenue is it's really difficult to forecast revenue here but from a cost 44:33 44 minutes, 33 seconds point of view do you see that FI27 is also going to be very similar to what we have seen in FI26 whereby fixed cost 44:40 44 minutes, 40 seconds maybe increase in cable and wire because of capacity addition but other segments remains broadly where they are or maybe just you know in line with inflation or 44:48 44 minutes, 48 seconds do you think that because of 26 have not seen major investment so 27 could see a bump of investment across segments. 44:57 44 minutes, 57 seconds Yeah, there will be some investment across segments. So this will be a special cable has seen the others or not but there will be a balanced uh uh you know approach across all segments. 45:08 45 minutes, 8 seconds However, uh you know, last year also we said this year also we'll try and get more operating leverage uh which means revenue growth should outpace the 45:17 45 minutes, 17 seconds expenses growth except in uh advertising and promotions where we are taking cautious decision to up our spend. 45:35 45 minutes, 35 seconds Oh yes, sir. The current participant has been disconnected. Okay. 45:43 45 minutes, 43 seconds Yes, ladies and gentlemen, that was the last question for today. I now hand the conference call over to the management for closing comments. 45:52 45 minutes, 52 seconds Thank you very much uh everyone for joining in uh to the investor call for HS India Limited and thank you for organizing this. Thank you. 46:03 46 minutes, 3 seconds Thank you. On behalf of Ald India Limited, that concludes this conference. 46:08 46 minutes, 8 seconds Thank you for joining us and you may now disconnect your lights. Thank you.