Orient Electric Ltd — Q4 FY26

Orient Electric Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=B6ZvRHBb6P4 Published: 5 days ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Orient Electric Limited Q4 FY26 earnings conference call hosted by Ambit Capital. 0:10 10 seconds As a reminder, all participant lines will be in the listenonly mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:19 19 seconds Should you need assistance during this conference, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. 0:30 30 seconds I now hand the conference over to Mr. 0:32 32 seconds Duv Jen from Ambit Capital. Thank you and over to you sir. 0:38 38 seconds Hello everyone. Welcome to Orient Electric's 4QFI26 earnings call. From the management today we have with us Mr. Ravindra Singh Ni 0:46 46 seconds managing director and chief executive officer. Mr. Arvin Wats chief financial officer and Mr. Sphov chen head of 0:54 54 seconds investor relations. Thank you and over to you sir for your opening remarks. 0:59 59 seconds Thank you DV uh and a very good evening to everyone and a warm welcome to Orient Electric's Q4 and full FI26 earnings 1:08 1 minute, 8 seconds conference call. Thank you for joining us today. I will begin by outlining the operating context for the quarter 1:16 1 minute, 16 seconds followed by a performance highlight and key actions that we executed during this period. During the quarter, industries 1:25 1 minute, 25 seconds operating environment was primarily afflicted by persistent commodity inflation, ongoing labor shortage and 1:32 1 minute, 32 seconds gas supply disruptions resulting from the West Asia prices. Additionally, a softness in demand emerged coinciding 1:41 1 minute, 41 seconds with the unseasonal rains leading to a slow start for cooling categories. 1:46 1 minute, 46 seconds Elevated channel inventory prompted dealers to approach replenishment with caution. These challenges are expected 1:53 1 minute, 53 seconds to remain important factors to monitor going forward. Amid this unprecedented situation, we delivered a double-digit 2:01 2 minutes, 1 second revenue growth in Koro 4 and further improving our AIA margins. Revenue from operations stood at 948 crores up 10% 2:10 2 minutes, 10 seconds yearonair supported by broad-based momentum across our portfolio. 2:17 2 minutes, 17 seconds This performance reflects a disciplined execution of one orient approach anchored in our three wall strategy that 2:24 2 minutes, 24 seconds focuses on multiple growth avenues while extracting synergies from our established ecosystem underpinned by 2:31 2 minutes, 31 seconds premiumization, innovation, diversification and operational discipline. Importantly, our 2:39 2 minutes, 39 seconds diversification engines continue to scale, improving the quality and resilience of growth across both lighting and ECD portfolios. 2:47 2 minutes, 47 seconds Lighting and switch remains a structural growth engine, delivering 16% airon revenue growth, driven by distribution 2:55 2 minutes, 55 seconds expansion, portfolio premiumization, and steady market share gains in consumer lighting. The consumer lighting business 3:03 3 minutes, 3 seconds witnessed a double-digit growth with a meaningful improvement in volume to value conversion. Our share of high 3:09 3 minutes, 9 seconds value luminaries expanded to 68% versus 63% last year support by strong traction 3:16 3 minutes, 16 seconds in key premium categories. Professional luminaries were largely flat this quarter. However, we continue to see a 3:24 3 minutes, 24 seconds strong project inquiry pipeline across street lighting and fit projects. Our emerging growth engines switch gear and 3:31 3 minutes, 31 seconds wires scaled well delivering high doubledigit growth. Wires doubled air on air while switches in switch gear 3:39 3 minutes, 39 seconds sustained a good momentum as we accelerated our electrician engagement initiatives and leveraged our fans and 3:46 3 minutes, 46 seconds lighting distribution ecosystem for effective cross sales. 3:51 3 minutes, 51 seconds In the ED segment revenue boost 7.6% 6% internet despite softness across the industry. Growth was led by a strong 4:00 4 minutes onground execution in our DTM states driving deeper penetration and market share gains. Fans delivered a high 4:07 4 minutes, 7 seconds singledigit growth outperforming peers driven by our distribution strategy and continued focus on premiumization and 4:15 4 minutes, 15 seconds product development. Our BLC portfolio grew over 50% air on air and now contributes 25% of domestic ceiling fans 4:24 4 minutes, 24 seconds revenue while our overall premium mix increased to approximately 35% of domestic fan revenue up from 30% in the previous quarter. 4:36 4 minutes, 36 seconds Premiumization and innovation launches remain a core pillar of our growth. A key highlight of the quarter was introduction of Aero O2, India's first 4:45 4 minutes, 45 seconds oxygen enriching ceiling fan powered by advanced bio plasma ion technology. This breakthrough innovation goes beyond air 4:53 4 minutes, 53 seconds circulations to deliver fresher, healthier air across all seasons. The Sambad platform launched earlier this 5:01 5 minutes, 1 second year has further improved service delivery experience by enabling deeper consumer insights and faster issue resolutions. 5:09 5 minutes, 9 seconds This also demonstrates our commitment to consumer centricity, ensuring that customers receive prompt and personalized support at every touch point. 5:19 5 minutes, 19 seconds Our appliances portfolio sustained its upward trajectory with strong traction and heating and garment care appliances and delivered high double-digit growth 5:27 5 minutes, 27 seconds on our ecom plus platform. Our overall ecom business scaled with market share gains delivering high double-digit 5:36 5 minutes, 36 seconds growth supported by a strong assortment, effective digital engagement and healthy consumer traction. Quickcommerce now contributes 10% of our digital channel. 5:46 5 minutes, 46 seconds During the quarter, we scaled our presence on big basket and now covering all major quickcom platforms. 5:53 5 minutes, 53 seconds Our exports business also grew at a double-digit rate, expanding our international presence across key markets. However, we are closely 6:01 6 minutes, 1 second monitoring the geopolitical tensions in West Asia to manage any potential implications proactively. 6:08 6 minutes, 8 seconds Operational discipline remains central to our approach in the context of commodity inflation and the star rating transition. We implemented calibrated 6:17 6 minutes, 17 seconds price actions of approximately up to 4% in Q4. Our sun program continued to deliver tangible benefits translating 6:26 6 minutes, 26 seconds into 68 cr of cost of savings during FY26 and supporting margin resilience. 6:33 6 minutes, 33 seconds Gross margin for the quarter stood at 31% impacted by commodity inflation. 6:38 6 minutes, 38 seconds Despite this, Aida margins improved to 8.2 and absolute aid at 77 6:45 6 minutes, 45 seconds cr up 15.8% year on air. PAT stood at 40 crores up 28.9% air on air reflecting 6:53 6 minutes, 53 seconds benefits of operating leverage for the full year revenues grew to 3326 7:00 7 minutes crores up 7 and a half% air on air increased to 229 crores up 12.4% on net 7:08 7 minutes, 8 seconds and PBT before exceptional items stood at about 139 crores up 24.2% 2% error on error. 7:16 7 minutes, 16 seconds Overall, our FY246 performance validates a long-term strategy centered around premiumization, innovation differentiation, and a 7:25 7 minutes, 25 seconds structured structurally strong go to market and service ecosystem supported by sustained investments in brand 7:32 7 minutes, 32 seconds building and an accelerated digital first approach. 7:37 7 minutes, 37 seconds As we enter FI27, our priorities remain consistent around the three world strategy which focuses on scaling our 7:45 7 minutes, 45 seconds diversification engines, accelerate premiumization and innovation, deepen distribution and service capability and 7:53 7 minutes, 53 seconds drive disciplined execution to strengthen profitability. 7:57 7 minutes, 57 seconds We will continue to drive mix improvement, cost discipline and execution rigor while staying agile to 8:05 8 minutes, 5 seconds commodity pressures and regulatory developments. We expect the demand to improve in Q1 supported by a forecast of 8:12 8 minutes, 12 seconds a hotter and more prolonged summer which could drive a late season surge in demand across fan and cooling categories. 8:20 8 minutes, 20 seconds We implemented a calibrated pricing actions early in the Q1 quarter to address commodity price inflation and we 8:28 8 minutes, 28 seconds will continue to evaluate further steps to offset the impact of recent global disruptions. While cost recovery remains a priority, but we are conscious of 8:37 8 minutes, 37 seconds preserving competitiveness. Our approach will therefore remain measured and responsive to market conditions focused 8:45 8 minutes, 45 seconds on protecting margins while retaining and gaining share. With these remarks, I would like to open the floor for your questions. Thank you. 8:54 8 minutes, 54 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone 9:02 9 minutes, 2 seconds telephone. If you wish to remove yourself from the question Q, you may press star and two. Participants are requested to please use handsets while 9:11 9 minutes, 11 seconds asking a question. Ladies and gentlemen, we will now wait for a moment while the question queue assembles. 9:17 9 minutes, 17 seconds Our first question comes from the line of Aneruda Jooshi from ICICA securities. 9:25 9 minutes, 25 seconds Please go ahead. 9:27 9 minutes, 27 seconds Yeah. Uh thanks for the opportunity and uh uh congrats for a good set of numbers 9:34 9 minutes, 34 seconds volatility. Uh so the price hike of 4% in fans seems to be very low uh given by inflation in input prices plus the V nom 9:43 9 minutes, 43 seconds change. So uh how much more price is required to pass on the entire uh uh 9:51 9 minutes, 51 seconds incremental cost uh burden? Uh question number one and uh secondly you have mentioned about uh market share gains in 10:00 10 minutes fans uh in the presentation. So if you can give more uh color on that means whether the market share gains are in uh 10:08 10 minutes, 8 seconds uh like the ceiling plans or BLC uh or uh innovate TPW and or or overall 10:16 10 minutes, 16 seconds and um any uh region wise color also if you can give either the uh direct market 10:23 10 minutes, 23 seconds uh whether we have gained or other markets we have gained so that will be helpful. Yeah. Thanks sir. 10:30 10 minutes, 30 seconds Yeah, thanks Anarut for your question and u let me just step back and tell you about that 4% that I spoke about is 10:38 10 minutes, 38 seconds something that we took about one and a half 3% in January then we took another one one and a half in March and in April 10:47 10 minutes, 47 seconds we've taken about close to 6% price increase so that's how we've staggered it so the 4% or little upward of 4% that 10:55 10 minutes, 55 seconds I spoke about is only for quarter 4 and if you Look at it. While star ratcheting and other things had its impact but it's 11:05 11 minutes, 5 seconds uh we for us the incremental impact was slightly lesser than the industry because our products were slightly uh 11:13 11 minutes, 13 seconds speced well and a part of our portfolio didn't have to go much of a change. So that's that's where uh I would give the 11:22 11 minutes, 22 seconds first part of the question. uh and and I've already explained that you know 6% is something that we've taken as an 11:29 11 minutes, 29 seconds industry I don't think so because the situation is so volatile uh the price uh close watch on the price 11:37 11 minutes, 37 seconds and commodity uh price inflation is being kept and if there are any further actions that needs to be taken we will 11:44 11 minutes, 44 seconds take that. uh in terms of market share gain uh you know we've gained about 30 40 basis points and this is all a third party report that we all subscribe to. 11:56 11 minutes, 56 seconds This gain has been a slightly secular for us. Uh if you look at it uh in our portfolio and efforts it's not that 12:03 12 minutes, 3 seconds we've just driven BLC in cing fan and we've not upgraded our portfolio on exhaust or TPW. Uh so it's been slightly secular across different channels. 12:15 12 minutes, 15 seconds across different uh markets. There's been some up and down in the regions that we would say but I would say by and 12:22 12 minutes, 22 seconds large it's a very consumer confidence which is coming across different channels and different whether it's a 12:29 12 minutes, 29 seconds digital or a offline channel that we've seen uh as we move further we've we we will be launching some more products 12:37 12 minutes, 37 seconds which are going to be industry first like the AO2 that we've done and this is give us further gains as we move forward 12:44 12 minutes, 44 seconds in market share trust that uh answers your question on. 12:51 12 minutes, 51 seconds Yeah, this is uh very helpful. Uh many thanks. Thanks. 12:58 12 minutes, 58 seconds Thank you. 13:00 13 minutes The next question is from the line of Manoj Gori with Capital. Please go ahead. 13:07 13 minutes, 7 seconds Yeah, good evening sir. Thank you for the opportunity. So my question is on the uh direct distribution model where 13:16 13 minutes, 16 seconds we have replaced super distributors or the master distributors and we are uh aligning our distribution model into 13:24 13 minutes, 24 seconds those respective states. how the progress has been during the year. If you can quantify with few examples for 13:32 13 minutes, 32 seconds couple of states how the growth has been versus earlier and probably if you can highlight if the entire benefit has been 13:42 13 minutes, 42 seconds seen or we expect some more benefit to kick in during SI27 also from this market. This is my first question. 13:53 13 minutes, 53 seconds All right. So, let me just take that question and uh as we said you know DPM or MB these are two go-to market models 14:02 14 minutes, 2 seconds that we have and unlike any other company we have this whole advantage of toggling between any of the two models 14:09 14 minutes, 9 seconds which works well for that particular market. What are we wanting to deliver? 14:15 14 minutes, 15 seconds We are wanting to deliver a deeper distribution. We're wanting to deliver a better connect with the retailers. We're wanting to do premiumization. 14:25 14 minutes, 25 seconds We're wanting to establish a better consumer service and a centricity resulting in a volume value 14:34 14 minutes, 34 seconds and a market share gains. So wherever we are seeing this, we take a model and that works well there. We continue with 14:41 14 minutes, 41 seconds it. Uh so it's never going to be either a DTM or an MD. It's going to be a balance of both. uh provided either of 14:49 14 minutes, 49 seconds the model delivers what the expectation on these few parameters that I spoke about. Uh last year we did uh a Pune and 14:58 14 minutes, 58 seconds the Durba uh belt. Uh so so that market has been uh doing well and now as we 15:05 15 minutes, 5 seconds enter into the season we'll see the real benefits of our DTM there. Otherwise for all the markets that we've gone and done 15:13 15 minutes, 13 seconds BTM we seeing traction and I said you know they've grown well in Korea 4 also uh we don't disclose market bymarket 15:21 15 minutes, 21 seconds growths but by and large I can tell you that uh these are the markets where uh we're getting market share gains and we're growing faster than the industry. 15:32 15 minutes, 32 seconds Okay, the second question is so even if you look at our discussion has been revolving around fans, lighting which 15:41 15 minutes, 41 seconds have been our core product categories and historically we have entered into many many new categories like air 15:48 15 minutes, 48 seconds coolers or even wires or even uh uh appliances like mixers, water heaters 15:55 15 minutes, 55 seconds and all. uh if we look at relatively I I am sure like even you would agree to 16:02 16 minutes, 2 seconds that that the progress has been relatively been slow as compared to the traction that we have built in fans and 16:10 16 minutes, 10 seconds lighting. So what are the plans ahead and probably this will be the categories which will be driving faster growth for 16:17 16 minutes, 17 seconds the company. So what are so what are what is the thought process over there and how we are targeting to scale up these strategies. 16:26 16 minutes, 26 seconds So you know I don't know whether we've met and I've spoken to you in person or not. We've always now said you know there is a three-wall strategy and a 16:34 16 minutes, 34 seconds diversified portfolio approach. We are dialing up all parts of a business and 16:41 16 minutes, 41 seconds looking at either the specifier or stroke go to market for 16:48 16 minutes, 48 seconds that specifier which could be a contractor, electrician or architect or interior designer or end consumer. So we 16:56 16 minutes, 56 seconds are looking at all three parts of the business. U we start scaling up switch gear, switches and wires and we seeing a 17:02 17 minutes, 2 seconds large fraction there. uh we've spoken about uh high double digit growth that we've seen. Uh for us, we've simplified 17:11 17 minutes, 11 seconds our portfolio in appliances and we've very much focused on appliances which gel with our electrical trade. So we've 17:20 17 minutes, 20 seconds d grown by a very high double digit gain market share across different channels in water heater in heating categories and some of the garment care categories. 17:31 17 minutes, 31 seconds So uh while we look at appliances at an overall uh value and then pass our 17:38 17 minutes, 38 seconds judgment on it but these are parts of those that we're driving well. So from a overall perspective we're taking not 17:48 17 minutes, 48 seconds just one approach of driving fans only or one demonstrated success that we've shown in lighting. They're saying 17:56 17 minutes, 56 seconds different parts of our businesses will be driven because the end consumer or the link to the end consumer is different and that's how we've been 18:05 18 minutes, 5 seconds driving. So maybe in one of the conversations next time we meet I'll explain to you in detail about our three wall strategy. 18:14 18 minutes, 14 seconds Awesome. Thank you and all the best. Thank you. 18:19 18 minutes, 19 seconds Thank you ladies and gentlemen to ask a question you may please press star and one. Our next question is from the line 18:27 18 minutes, 27 seconds of love Gupta with countercyclical investments. Please go ahead. 18:33 18 minutes, 33 seconds Hello sir uh thank you for the uh opportunity. So firstly uh I wanted to understand why our working capital days 18:41 18 minutes, 41 seconds have increased. It's gone up to over 30 days from 23 days last year. So what was the reason for the same? And uh secondly 18:49 18 minutes, 49 seconds uh you know we had guided for uh doubledigit margins over the next six to eight quarters but uh we've been unable 18:57 18 minutes, 57 seconds to achieve the same. So what was the reason for the same and you know when can we expect to reach double digit margins. 19:07 19 minutes, 7 seconds So hi so let me just uh tell you about the working capital. If you look at it, there's been a little bit of inventory 19:13 19 minutes, 13 seconds that we've built up and our uh payables have uh you know gone up a little bit. 19:20 19 minutes, 20 seconds Uh so overall if you look at it that's where the reason for uh our working capital days going up. Uh largely from a 19:29 19 minutes, 29 seconds perspective that we were building up we saw the disruptions in supply and that's why we were building up a little bit of inventory uh for our so that's on the 19:38 19 minutes, 38 seconds working capital. The other is uh in terms of uh uh sorry can you just come and repeat the question 19:47 19 minutes, 47 seconds double digit okay yeah yeah yeah sorry on the double digit evidence so look uh we've always given a guidance of saying look 32 to 34% should be our gross 19:56 19 minutes, 56 seconds margin uh given the sudden impact of west Asia conflict given the sudden 20:04 20 minutes, 4 seconds supply disruption and and immediate commodity price increase we couldn't and none of us in the industry could take a 20:12 20 minutes, 12 seconds price increase in March and all of that the calibrated increase has happened in uh in the month of April so it's 20:20 20 minutes, 20 seconds impacted our gross margin I would say about 150 basis point uh overall if you look at it there's been a lot of uh 20:28 20 minutes, 28 seconds effect on our uh cost uh uh measures that we've taken our 20:36 20 minutes, 36 seconds operating has improved move by almost 40 basis points to 8.2 and hence uh we we 20:44 20 minutes, 44 seconds are committed towards our path to 10 double digit uh margin. So that's what I can tell you. Uh it's been a very 20:52 20 minutes, 52 seconds challenging environment but yet in that challenging environment we we've improved our margins. 20:59 20 minutes, 59 seconds So uh can we expect uh you know to reach those levels once the situation starts to normalize and supply chain is uh efficient again. 21:10 21 minutes, 10 seconds If the com even the commodity inflations to subside and supply deceptions to go 21:16 21 minutes, 16 seconds from structural perspective uh we are trending towards a double digit pattern 21:23 21 minutes, 23 seconds and our actions are uh cost discipline our execution rigor our uh multi-engine 21:33 21 minutes, 33 seconds growth uh all that is uh sinking in well to take us there uh provided some of 21:40 21 minutes, 40 seconds these unprecedented unanticipated uh surprises don't come in hit the 21:47 21 minutes, 47 seconds industry the way it has hit us uh hit the industry now but given that also you know uh we we we've improved our auda 21:55 21 minutes, 55 seconds margins by about 40 6% and uh could you uh quantify what is the price hike taken this quarter across our 22:04 22 minutes, 4 seconds portfolio and if there are any further price hikes planned. 22:09 22 minutes, 9 seconds So I just said I responded back to Anerod and uh uh we we've taken about 22:16 22 minutes, 16 seconds approximately 6% uh price increase in fans about 6% little over 6% and 22:22 22 minutes, 22 seconds lighting uh so by and large even in switch we've taken about 6% 22:29 22 minutes, 29 seconds uh wires is uh you know literally almost every 15 days 3 weeks that we've been 22:35 22 minutes, 35 seconds taking price so we are very conscious of the fact that beyond a certain point there has to be uh commodity price 22:43 22 minutes, 43 seconds inflation that needs to be passed on and we've done it uh in a calibrated way. 22:50 22 minutes, 50 seconds And lastly just uh so sorry to interrupt we request you to please rejoin the queue if you have any further questions. Thank you. Our 22:58 22 minutes, 58 seconds next question is from the line of sila with Kotak Asset Management Company. Please go ahead. 23:04 23 minutes, 4 seconds Yeah. Uh thanks for the opportunity and uh congrats on a good set of numbers Mr. 23:08 23 minutes, 8 seconds Megi uh a few questions from my side uh in terms of the project Sanche obviously we've seen significant cost benefits 23:15 23 minutes, 15 seconds over the last two years this year also it's about 68 crores uh do you believe the large part of the cost efficiency is 23:22 23 minutes, 22 seconds behind us and within that 68 can you broadly classify how much is material and how much is outside of material in 23:30 23 minutes, 30 seconds terms of cost savings uh so many times uh you know we we've started the sun program about 3 four 23:39 23 minutes, 39 seconds years back and uh the first year and the second year we thought we've juiced it maxed it out but every time you look at 23:47 23 minutes, 47 seconds it there are opportunities that we find this year we've done about 68 crores uh and there are multiple levels that we 23:56 23 minutes, 56 seconds look at it there are VAVS that we do in the product there are renegotiations that we do and there are process re-engineering that we do so 24:05 24 minutes, 5 seconds I can't disclose what is contributing what but there is a summation of all that that uh gets uh quantified at 68 24:13 24 minutes, 13 seconds crores but uh but as we move on this is a continuous so it's not a destination 24:20 24 minutes, 20 seconds but it's a continuous journey that we we are on uh commodity prices go up uh you 24:27 24 minutes, 27 seconds look at different alternate materials so that's that's in a way uh San keeps us 24:35 24 minutes, 35 seconds committed to that double double digit uh aa journey and keeps us on our toes. So that's a very structured program 24:43 24 minutes, 43 seconds reviewed at the highest level across the organization. There are people who are committed uh to to deliver here. 24:52 24 minutes, 52 seconds Okay. Okay. Uh my second question is with respect to the ECD uh uh uh would the contribution of fans in the overall 25:01 25 minutes, 1 second ECD would have gone up stayed flat? I am asking on a Y basis from FI26 to FI25. 25:10 25 minutes, 10 seconds Uh would be by and large in the same range for ECD in the plan. Okay. And would it be possible? 25:19 25 minutes, 19 seconds We're dialing up the other part also. So we're dialing up the uh water heaters, we're dialing up garment care, we're 25:27 25 minutes, 27 seconds dialing up room heatters and quart little bit of extended uh winters also helped in that case 25:35 25 minutes, 35 seconds and would it be fair to assume that there would be a mids singledigit volume growth in fans as well or uh the number could be even higher to that extent? 25:45 25 minutes, 45 seconds Yeah, there is there is volume value both that we got it and uh largely if you look at it a lot of our efforts in 25:53 25 minutes, 53 seconds terms of new product development which now contributes almost 24% of our uh 26:00 26 minutes PAMS uh revenue and a real focus on premiumization that's helping us uh get the volume value uh synergize output. 26:12 26 minutes, 12 seconds Sure. And my last question in terms of the the new series of fan which we have launched uh what would be the broad range pricing point the starting pricing 26:20 26 minutes, 20 seconds point and which all key markets is where we have introduced as of now that would be my last question. 26:26 26 minutes, 26 seconds So there's a series there's a I'll preempt a little bit because some of this has already hit the market. 26:33 26 minutes, 33 seconds We've done series of India's first innovation that we've done. Yeah. So our 26:39 26 minutes, 39 seconds AO O2 which is a oxygen enriching is in the range of about 16,000 that's gone to 26:47 26 minutes, 47 seconds key metros and key tier one towns. Uh and that's a high price uh product. Then 26:55 26 minutes, 55 seconds there is aerosent which is India's most or India's quietest fan which is under 50 dB of uh noise levels. that's going 27:04 27 minutes, 4 seconds to be across as we speak it's getting rolled out across the country that's in the range of about 8,000 MOP okay and 27:14 27 minutes, 14 seconds the third is also what we've done which is a great innovative and coming from a deep consumer insights and understanding 27:20 27 minutes, 20 seconds is India's first inverter stroke battery backup ceiling fan it can give you a 27:27 27 minutes, 27 seconds battery backup of almost 6 hours uh at a certain speed uh so that's also is getting rolled out. So some of this plus 27:35 27 minutes, 35 seconds we've got into uh PLC and TPW. There's a huge range which is coming and 27:42 27 minutes, 42 seconds everything will be at a different price range. uh but what we've done is that we've spent a lot of time solving to 27:50 27 minutes, 50 seconds consumer problems, solving to consumer need and I think that's what is going to reflect uh not only our product uh this 27:59 27 minutes, 59 seconds thing but also in the touch feel and the form factor that you'll see in our products. So overall the design language is premium. 28:11 28 minutes, 11 seconds uh overall the consumer benefits are stemming from the uh consumer insight. 28:17 28 minutes, 17 seconds So so a huge amount of effort which has gone in fan and in lighting also and the 28:24 28 minutes, 24 seconds similar uh thing that you'll see in switches and switch gear also coming in a similar approach that you'll see uh in 28:32 28 minutes, 32 seconds some of the products that we'll roll out in say a water heaters or a room heater uh category. So you'll see a consistent 28:39 28 minutes, 39 seconds grand synergy or a a language design language uh an approach that will start coming in all our products. 28:49 28 minutes, 49 seconds Perfect. Perfect. Thank you so much and all the best for subsequent quarters. Thank you so much. 28:56 28 minutes, 56 seconds Thank you. The next question is from the line of Rajna Kukura from SIMPL. Please go ahead. 29:03 29 minutes, 3 seconds Uh thank you for the opportunity. I have few questions of my first question is our ambition was to improve the mix of 29:10 29 minutes, 10 seconds premium products as a percentage of domestic fan mix from 30 to 40% over a 29:17 29 minutes, 17 seconds few years and in FY26 premium products contribute 35% though the premium mix 29:24 29 minutes, 24 seconds has improved by 5% our gross margins have remained stable in FY26 despite taking price hikes to offset inflation. 29:35 29 minutes, 35 seconds So if you could provide what factors have restricted our gross profit margins improving despite the benefit from 29:44 29 minutes, 44 seconds better product mix and price increases. 29:49 29 minutes, 49 seconds Yeah, that's a good question. You know, uh I said it, you know, I said it earlier also right now that the pricing or the calibrated price increases that 29:58 29 minutes, 58 seconds we've taken not only us but for the industry that has taken, it is not offsetting the 30:06 30 minutes, 6 seconds commodity or overall inflation that's hitting. So while commodity becomes the headline inflation but there are so many 30:15 30 minutes, 15 seconds other inflation or a cost increase that starts to come in shortage of labor resulting into low productivity is a 30:24 30 minutes, 24 seconds cost inflation. Uh you know cash going up or the commercial LPG unavailability 30:32 30 minutes, 32 seconds and the price going up is a commodity cost inflation. 30:37 30 minutes, 37 seconds uh and then some of the other things that which impact the industry a lot of uh are for the industry the supply 30:46 30 minutes, 46 seconds ecosystem is in the north Ariana increase the minimum wages by 35% UP followed by 24%. That's the cost 30:54 30 minutes, 54 seconds inflation that comes in. So while we keep looking at commodity and say oh commodity equal to commodity the cost of running the business or cost 31:04 31 minutes, 4 seconds of production across categories across the industries has really gone up. Uh 31:12 31 minutes, 12 seconds while you've taken calibrated increases uh all of it by the industry has not passed on to it. It is and if you look 31:20 31 minutes, 20 seconds at some of the peer results and all while operating orbit has dropped, it is actions like focus and premiumization 31:28 31 minutes, 28 seconds which is helping us improve our AITA given the fact that we still have uh gap between the cost 31:37 31 minutes, 37 seconds increase and what we've taken from the consumer. 31:42 31 minutes, 42 seconds Okay. Uh my second question would be if you could provide some color on the Hyderabad plant and its current 31:49 31 minutes, 49 seconds utilization levels. Has it uh reduce delivery time and cover up any inventory constraints in south and western 31:57 31 minutes, 57 seconds markets? and also Hyderabad Hyderabad plant had an idea of you know growing the export business which has grown as 32:05 32 minutes, 5 seconds per the investor presentation and within exports how has the uh growth for TPW 32:12 32 minutes, 12 seconds fans been and has the mix of TPW fans improved for us and correspondingly has 32:18 32 minutes, 18 seconds ex any growth in export contributed to our gross margins. 32:25 32 minutes, 25 seconds Okay. So, too many questions rolled into one batch. Let me just uh uh you know try and answer. So, largely uh Hyderabad 32:34 32 minutes, 34 seconds is now seeing traction in the utilization because uh a large bit of our uh production of PBW is in 32:42 32 minutes, 42 seconds Hyderabad. Currently, it's split between uh Kolkata and Hyderabad. We seeing our 32:49 32 minutes, 49 seconds PPW production going up. We're seeing uh early signs of PPW traction coming in 32:55 32 minutes, 55 seconds south. Uh south has good uh showing green shoots of good summer. So uh too 33:03 33 minutes, 3 seconds early to say, too early to conclude but that's where we seeing the traction happening. Um exports has done well. 33:11 33 minutes, 11 seconds We've uh grown by double digit on uh exports. uh PPW is a significant part of 33:19 33 minutes, 19 seconds exports but exports is also a large part on ceiling fan. So uh and and we do both 33:26 33 minutes, 26 seconds from uh uh Hyderabad uh moving forward it'll be a good hub for us to you know 33:33 33 minutes, 33 seconds uh continue to produce for export markets. So overall we've seen benefits 33:40 33 minutes, 40 seconds of uh Hyderabad being there uh the factory being in Hyderabad. It also 33:46 33 minutes, 46 seconds solves for a large part of our uh logistics costs and speed to market much 33:53 33 minutes, 53 seconds faster uh than having a factory either at Farabad Supply or Kolkata supplying to South. 34:02 34 minutes, 2 seconds Okay. One last question. 34:04 34 minutes, 4 seconds Uh sorry to interrupt ma'am. We request you to please rejoin the queue if you have any further questions. Thank you. 34:10 34 minutes, 10 seconds Our next question comes from the line of Natasha Jen from Philip Capital. Please go ahead. 34:16 34 minutes, 16 seconds Thank you for the opportunity and congratulations sir on a good set of numbers given an extreme volatary market. So three quick questions. One I 34:24 34 minutes, 24 seconds wanted to understand so fans is not as much a seasonal product as say a room. 34:30 34 minutes, 30 seconds So on that lines, could you help us understand what is the broader revenue split for fans on a four calendar quarter basis? 34:41 34 minutes, 41 seconds Okay. So uh so I you know if you look at it uh and uh we could look at this data 34:47 34 minutes, 47 seconds from a uh absolute consumer angle first and I think that's where we need to look at it and not from a primary perspective 34:56 34 minutes, 56 seconds because uh those two could have a different cycle from a consumer angle about 45% 35:05 35 minutes, 5 seconds of the offtake happens between 1st March to the end of June. Uh that's the 35:11 35 minutes, 11 seconds consumer cycle. Uh 55% of it happens in the balance of there. Uh and it could 35:18 35 minutes, 18 seconds vary you know from region to region. Uh if you look at it from a four quarter it is not a very uniform from a primary 35:26 35 minutes, 26 seconds perspective because when you uh mirror the cycle of production mirror the cycle of trade uh loaded. So those may not be 35:35 35 minutes, 35 seconds the ideal uh comparisons to do. Uh in between around Diwali time you get a 35:43 35 minutes, 43 seconds little bump in consumer optic again. Uh but otherwise uh depending on whether 35:50 35 minutes, 50 seconds you're doing a first time buy or you're looking at economy, economy gets little skewed related to season. But when you 35:58 35 minutes, 58 seconds look at premium and into some of the categories like BLTC, they are far more linear they're far more consumer oft 36:07 36 minutes, 7 seconds happens because of upgrades and renovation. So that is far more linear. 36:12 36 minutes, 12 seconds But from a consumer angle, 45% happens between March to June. 36:18 36 minutes, 18 seconds That's helpful. So thank you. Uh second question, could you also throw some light on the channel inventory for cooling products? uh given that summer 36:26 36 minutes, 26 seconds has actually picked up only from say mid of April are primaries as fast as the secondaries. 36:34 36 minutes, 34 seconds Uh so uh unfair for me to give you a real live quarter 1 update but quarter 4 36:43 36 minutes, 43 seconds obviously uh you know uh the buildup happens so there is a a buildup that happened but I don't think so the 36:49 36 minutes, 49 seconds buildup happened dramatically higher than any normal there so so quarter four 36:56 36 minutes, 56 seconds the buildup wasn't uh abnormal it was a normal buildup quarter one as we speak uh there were a period of 37:04 37 minutes, 4 seconds two weeks where there were extreme heat in the north and the south. As we speak there is south which is going through 37:11 37 minutes, 11 seconds heat a part of west which is going on for few last few days. north is a little 37:18 37 minutes, 18 seconds uh cooler than what it is expected but uh uh you know I won't I won't comment on here and now data on primary and 37:26 37 minutes, 26 seconds secondaries right now but uh whatever we can read about uh super elino this could 37:32 37 minutes, 32 seconds be uh this could see a little late surge in uh summers also and a little more uh 37:40 37 minutes, 40 seconds prolonged summer that we could see. So keeping our fingers crossed. So hopefully should be a good uh summer. 37:48 37 minutes, 48 seconds Got it. And sir, one last question. Um I mean given almost all industries are facing abnormal cost headings and summer 37:57 37 minutes, 57 seconds also you know it was half there half not there. Sometimes it rained and sometimes it didn't. So is it fair to say that at least calendar 26 will be a year of say 38:07 38 minutes, 7 seconds protecting margins rather than improving? And on that note, we closed FYI 26 at 6.9 consolidated at the any 38:15 38 minutes, 15 seconds kind of guidance that you could give us for 27 as well. Thank you. 38:20 38 minutes, 20 seconds So I I would put uh you know FY 26 in two halves. The H1 was a real wash 38:28 38 minutes, 28 seconds out. Okay. I don't think so the summers have been as weak as what it was last 38:36 38 minutes, 36 seconds year. uh when I look at my H2 and my exit, I've exited H2 with an improvement 38:43 38 minutes, 43 seconds on ITA margins. Yes, the challenges and commodities stay there, but all of us are putting our efforts to navigate 38:51 38 minutes, 51 seconds these headwinds. Uh our entire focus is to make sure that uh we are in the 38:58 38 minutes, 58 seconds premium category where uh the consumer is slightly more cocooned to the 39:04 39 minutes, 4 seconds inflation and is and is willing to pay you if you provided you give him a value and a unique and innovative product. 39:14 39 minutes, 14 seconds That's the entire effort for us. Uh this year and I said you know we are dialing up all parts of our 39:23 39 minutes, 23 seconds uh looking at the three wall strategy delivering growth from all factors and not just one category and that's that's 39:32 39 minutes, 32 seconds the portfolio approach which will help us. 39:37 39 minutes, 37 seconds Understood. So this is extremely helpful. Thank you and all the very best. Thank you. 39:45 39 minutes, 45 seconds Thank you. Our next question is from the line of Rahul Lagarwal from Asset. Please go ahead. 39:52 39 minutes, 52 seconds Uh hi uh good evening Mr. 39:54 39 minutes, 54 seconds Uh it's been about my question essentially is a bit long is long range. 40:00 40 minutes It's been working years you've taken over at Orientric. Um I'm sure you have done a lot of changes. We've noticed uh 40:08 40 minutes, 8 seconds you know across new product launches you know go to market and stuff like that. uh this now looking at 201 I think 40:18 40 minutes, 18 seconds is obviously challenging everybody knows that but if you take a three-year view right inflation has been missing in this industry right and this question is more 40:26 40 minutes, 26 seconds on industry and orient as well that given that pricing is now coming back though driven by inflation and you 40:34 40 minutes, 34 seconds know whatever happens from the input cost perspective a lot of other cost you highlighted already uh you know ultimately this pricing 40:43 40 minutes, 43 seconds increase helps to absorb fixed cost, right? And we have this hydro plant sitting in the office as well here uh 40:50 40 minutes, 50 seconds where we need to get better summer better export demand to utilize better and absorb those costs better. Uh we have the pricing hikes happening. Uh 40:59 40 minutes, 59 seconds volume growth should pick up only because of you know summer tailwinds last year some bad this year summer looks okay. Uh does it look like an inflection point to you? 41:10 41 minutes, 10 seconds The question is more from a fiscal 2029 perspective at 3,000 cr sales 100 crores profits. Do you think getting back this 41:19 41 minutes, 19 seconds pricing in the industry is very positive for everybody and and Orient and incrementally double digit growth with double digit margins is something we 41:28 41 minutes, 28 seconds should now look at it much positively or maybe you know timing is uncertain but maybe 3 years out fiscal 28 21 you actually achieve it purely because now 41:37 41 minutes, 37 seconds you have pricing till just some context on this please thank you thanks Rahul and I I I I I remember you 41:45 41 minutes, 45 seconds know two years back when we met and you had a little bit of pessimism and happy to hear a little bit of optimism coming about Orient from you and it's helpful. 41:55 41 minutes, 55 seconds Uh let me just reflect back of what you call as pricing power. Uh I don't see it as a pricing power. I think it's a catch 42:02 42 minutes, 2 seconds 22 situation that the industry has got into it and I'm largely reflecting from industry perspective right now. It's a catch22 situation. When the inflations 42:12 42 minutes, 12 seconds go up, do you absorb? Do you don't absorb? If you don't what do you do? If you do what is that the market can 42:19 42 minutes, 19 seconds absorb. So I think it's not a pricing power that is coming. It's the pricing action that has been taken by the 42:26 42 minutes, 26 seconds industry which I think is a good step whether it was forced not forced but it is I think it was inevitable that nobody 42:35 42 minutes, 35 seconds could absorb that. uh when I reflect back on what a real pricing power is. 42:41 42 minutes, 41 seconds The real pricing power is when you understand consumers uh uh very deeply and you are able to 42:48 42 minutes, 48 seconds give a value to the consumer for which he he or she is willing to pay you. The effort in Orient over the last few years 42:57 42 minutes, 57 seconds has been to understand consumers become a far more consumercentric organization 43:04 43 minutes, 4 seconds design develop products not just for basic functionality but satisfy the need of a consumer for either a design output 43:14 43 minutes, 14 seconds which is taking care of the lifestyle need or solve for the tech need that the consumer has. So I think not just fans 43:22 43 minutes, 22 seconds across all categories we've been able to do this. uh we should catch up and I should take you through our thinking on 43:29 43 minutes, 29 seconds the three-wall strategy and hence once you hear that maybe you'll be far more optimistic about our journey towards 43:36 43 minutes, 36 seconds 5,000 cr and a double digit there but uh we seem to be on the right trajectory 43:44 43 minutes, 44 seconds but a lot more to do from a consumer expectations and fulfilling the consumer expectations and a lot of white spaces 43:52 43 minutes, 52 seconds to cover as I can say say Got it. Got it sir. uh and to clarify I 44:00 44 minutes mean fiscal 27 margin repaying or increase in margin is going to be a function of a lot of things which how things move forward but currently the 44:09 44 minutes, 9 seconds price you mentioned across categories are those enough to take care of the spot pricing of input and other material 44:18 44 minutes, 18 seconds is that we should assume that uh it is not and I'll be very honest with you the industry has not been able 44:26 44 minutes, 26 seconds to do industry has taken a very balance view of saying don't do anything which impacts the elasticity of demand because 44:33 44 minutes, 33 seconds if demand goes down to bring that up takes a huge amount of effort. uh so a huge amount of effort will go towards 44:42 44 minutes, 42 seconds bringing cost discipline to offset that gap and that's what I think over the last if you look at our cost structures 44:49 44 minutes, 49 seconds and uh cost movement you will see a some bit of cost discipline coming in our uh 44:56 44 minutes, 56 seconds numbers that's what we'll continue to do but if the commodity continues to do this and we are we are forced to taste a 45:04 45 minutes, 4 seconds calibrated price in fees we will not shy away from God, Mr. Medi, thank you so much for 45:12 45 minutes, 12 seconds answering this question and wish you all the luck for the rest of the year. Thank you. 45:20 45 minutes, 20 seconds Thank you. 45:25 45 minutes, 25 seconds Our next question comes from the line of love Gupta from Countery Investments. Please go ahead. 45:32 45 minutes, 32 seconds Uh hi sir, thank you for the opportunity again. I just uh wanted to share that you know we have completed 45:40 45 minutes, 40 seconds our Hyderabad kits and uh you know do we have any plans for a share buyback or something along those lines you know 45:49 45 minutes, 49 seconds instill some confidence in the investor community? 45:54 45 minutes, 54 seconds Uh no right now nothing of that sort once we if we have anything we'll come back and talk about. All right. Thank you. 46:07 46 minutes, 7 seconds Thank you ladies and gentlemen. We will take that as our last question for today. I would now like to hand the conference over to the management for closing comments. 46:17 46 minutes, 17 seconds Uh thank you everyone. Thank you for taking your time out and uh joining us and your questions keep us sharp on the 46:26 46 minutes, 26 seconds tour and also gives us uh food for thought. So thank you for this and look forward for meeting uh some of you in person. 46:38 46 minutes, 38 seconds Thank you. On behalf of Amit Capital that concludes this conference. Thank you all for joining us. You may now disconnect your lines.