Pidilite Industries Limited — Q4 FY26

Pidilite Industries Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=3LRXPuYwXmY Published: 5 days ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Pedralite Industries Limited Q4 and FI26 earnings conference call hosted by COTC Securities. 0:13 13 seconds As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:23 23 seconds Should you need assistance during this conference call, please signal an operator by pressing star bin zero on it 0:30 30 seconds at stone pawn. Please note that this conference is being recorded. I now hand the conference over to Mr. 0:37 37 seconds Joshi from KTOC securities. Thank you and over to you sir. 0:43 43 seconds Thanks Swapnali. Good afternoon everyone. On behalf of Kotak Institutional Equities, I welcome you all to Q4 FYI26 earnings call of 0:52 52 seconds pedilite. We have with us Mr. Sudan Shuat, managing director. Mr. Kavindar Singh, joint managing director. Mr. 1:00 1 minute Sepatra, executive director finance and CFO. Uh Mr. Bhavesh Jooshi, senior VP domestic 1:09 1 minute, 9 seconds accounts and taxation. I'll now hand over the call to Mr. Butra for opening remarks. Over to you sir. 1:16 1 minute, 16 seconds Thank you. Thank you Jay. And uh good afternoon everybody on the call. Uh I take great pleasure in taking you 1:23 1 minute, 23 seconds through the Q4 and FI26 results which were approved by our board at its meeting yesterday. 1:32 1 minute, 32 seconds Uh a quick summary of the performance uh for the quarter. In the current quarter, 1:39 1 minute, 39 seconds our standalone revenue uh of at 3,272 crores grew by 15.3% 1:49 1 minute, 49 seconds in value terms and was underpinned by an underlying volume growth of 15.3%. 1:56 1 minute, 56 seconds Uh this compares to uh underlying volume growth of 9.8% 8% that we had delivered 2:03 2 minutes, 3 seconds till December and 9.3% UVG uh that we delivered in FI25. 2:11 2 minutes, 11 seconds Uh both our consumer and bazar and B2B uh businesses recorded strong UVG 2:18 2 minutes, 18 seconds consumer and bazar was 15.4% and B2B was 14.8%. 2:24 2 minutes, 24 seconds Um I think the only area line of business that saw some disruption was in exports both for consumer bazar and B2B. 2:35 2 minutes, 35 seconds Uh where in the month of March because of this conflict in Gulf in West Asia uh 2:42 2 minutes, 42 seconds supply chains were disrupted and our export revenues got impacted. Uh however till February uh the performance had been strong. 2:52 2 minutes, 52 seconds uh our gross margins also improved uh versus uh Q4 last year by 100 basis points and 3:01 3 minutes, 1 second were kind of in line with the immediately preceding quarter. 3:07 3 minutes, 7 seconds Uh our control on costs where total costs despite little bit of extra charge on 3:14 3 minutes, 14 seconds account of wage code uh all our costs below margin increased by only 9.2%. 3:20 3 minutes, 20 seconds compared to a sales growth of 15.3 and you can see this operating leverage uh flowing back to the AIDA and AIDA 3:29 3 minutes, 29 seconds margin at 23.4% expanded by 280 bips versus same period 3:36 3 minutes, 36 seconds last year and for the quarter EIDA grew by 31.1%. 3:43 3 minutes, 43 seconds PAD growth was slightly slower largely because of timing differences regarding dividends that we get from our subsidiaries. 3:52 3 minutes, 52 seconds uh in the last in last year in Q4 we had received some dividend which in this current year either would have come in 3:59 3 minutes, 59 seconds the previous quarter or will come subsequently as well as there was a little bit of impact on our treasury income owing to 4:08 4 minutes, 8 seconds rising bond yields which caused some marktomarket impact. Uh however the YTMs remain strong on all our investments. 4:18 4 minutes, 18 seconds Uh the board also approved uh a final dividend of 11.5 per share on an expanded share capital. 4:26 4 minutes, 26 seconds Uh you may note that last year we had announced a one for one bonus. Uh this dividend will be paid subject to 4:34 4 minutes, 34 seconds approval by the shareholders at the AGM and is in addition to the special dividend that we had given of rupees 5 a 4:43 4 minutes, 43 seconds share. So this including the special dividend the payout ratio will be around 70%. 4:49 4 minutes, 49 seconds Uh if I look at how our subsidiaries uh performed the international subsidiaries in the quarter grew by 8% and domestic subsidiaries grew 5.3%. 5:02 5 minutes, 2 seconds uh in domestic subsidiaries uh the waterproofing business which is under the name of Nenina had some headwinds 5:09 5 minutes, 9 seconds because of environmental challenges in getting workfront where they could do waterproofing. Uh so the Nenina waterproofing business would have 5:18 5 minutes, 18 seconds declined by 16% but the rest of the businesses which are largely consumer and bazar recorded very strong growth and very strong profitability. 5:29 5 minutes, 29 seconds Uh consequently uh our total consolidated revenue grew by 14.1%. 5:37 5 minutes, 37 seconds Uida margin expanded by 310 bips all of it flows down to PAT which grew by 36.6%. 5:47 5 minutes, 47 seconds [clears throat] 5:48 5 minutes, 48 seconds Um um for the full year again consolidated revenue at 14,553 5:56 5 minutes, 56 seconds crores was up by 11.1% and the bida margin expanded by 120 bips 6:03 6 minutes, 3 seconds over all of FI25 and PAT grew by 18% 17.9%. 6:11 6 minutes, 11 seconds Uh the performance on cash including working capital continues to remain strong. uh and we continue to invest 6:18 6 minutes, 18 seconds behind capacity as well as other initiatives. So our capex in the year also was uh higher than what we had 6:26 6 minutes, 26 seconds spent in the previous year. Uh with this uh I open the floor for Q&A. Thank you. 6:35 6 minutes, 35 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 6:44 6 minutes, 44 seconds star and then one on the touchstone telephone. 6:47 6 minutes, 47 seconds If you wish to remove yourself from the question queue, you may press star and two. 6:53 6 minutes, 53 seconds Participants, you are requested to use handsets while asking a question. 6:58 6 minutes, 58 seconds Ladies and gentlemen, we will wait for a moment while the question is assembles. 7:06 7 minutes, 6 seconds A reminder to all. You may press star and one to ask a question. 7:16 7 minutes, 16 seconds We will take the first question from the line of Abnish Roy from Noama Institutional Equities. Please go ahead. 7:24 7 minutes, 24 seconds Uh thank you uh and uh congrats on very strong numbers. My first question is on the shares app that you have done with 7:32 7 minutes, 32 seconds JSW uh one. Um why uh transfer your build next platform or build next 7:39 7 minutes, 39 seconds construction solution and is this a financial investment in JSW1 given there is a plan for an IPO and you do compete 7:49 7 minutes, 49 seconds in paints I think so could there be some kind of a strategic tie up in paints also is that possible 7:57 7 minutes, 57 seconds so uh Abish I think as you asked I think uh the reason is that we found uh strategic strategic synergies uh in in 8:06 8 minutes, 6 seconds doing this uh transaction. Uh I think Billx uh basically has a good home in 8:13 8 minutes, 13 seconds GSW1 and yes you are right post the uh transaction we will be shareholders of 8:20 8 minutes, 20 seconds GSW1 as well. As far as the other synergies are concerned we will explore them as we go along. I think you know that's where we are on this one. 8:30 8 minutes, 30 seconds Well that's a very significant statement you'll explore. So you do compete in paints. In fact you are bidded against each other in paints to acquire ado. So 8:39 8 minutes, 39 seconds that option is there right in terms of I think as these marketplaces come up I think the the spirit in which you should take it is that as these marketplaces 8:48 8 minutes, 48 seconds come up and I think GSW1 and and there's also buildup pivot and all that. I think these will go well beyond their own 8:56 8 minutes, 56 seconds products for them to be successful marketplaces. 8:59 8 minutes, 59 seconds uh and therefore and and there is always uh you know inquiry on that sort of uh you know other products including ours. 9:07 9 minutes, 7 seconds So what our our point of view is that we will keep evaluating it in a manner of speaking and see when it is right for us 9:15 9 minutes, 15 seconds to be on one or many of these marketplaces and on my question whether this is a 9:22 9 minutes, 22 seconds financial investment historically I've seen that pity like likes likes to have take in these kind of distribution/ new 9:30 9 minutes, 30 seconds consumer uh platforms to get uh access to data to get some uh uh preferential uh orders etc. So is this a financial 9:39 9 minutes, 39 seconds investment or is it is this more strategic? 9:43 9 minutes, 43 seconds So see it is at this moment through the transfer of buildings a financial investment we own shares there in in JSW1. Therefore, I think the point is 9:52 9 minutes, 52 seconds because depending in these kind of places, I think that concept of so what what you rightly speak about is correct 9:59 9 minutes, 59 seconds that when we look at uh you know very new startups or or uh we always have 10:06 10 minutes, 6 seconds some kind of a we want to take a deeper look at them. We have some investment in these cases but in this one that 10:13 10 minutes, 13 seconds philosophy applied to build next where we had indeed invested. You're absolutely right. Now having seen that for some time we think JSW1 10:22 10 minutes, 22 seconds is the right home for build next to take build next further as we go forward and I think in that context with this transaction we will become uh a small shareholder with uh GSW. 10:35 10 minutes, 35 seconds I mean our shareholding in JSW will be uh quite insignificant. So, so build 10:41 10 minutes, 41 seconds next was strategic for us and build next and for I think JSW was for JSW1 also 10:49 10 minutes, 49 seconds build next was strategic and we felt that the business can is best served uh with a with an owner like JSW who can can provide its scale and profitability. 11:00 11 minutes So we were very happy to uh swap our uh shareholding there. Our shareholding will be insignificant in in JSW1. 11:10 11 minutes, 10 seconds Thank you. Uh my second question is on demand side. So we have seen very good recovery across most of the FMCG names and Sachu you have worked obviously in 11:19 11 minutes, 19 seconds FMCG and now in Pilide. So are you seeing a genuine demand recovery because in your case there was obviously no GST 11:26 11 minutes, 26 seconds direct benefit of any cut. Uh plus biscuit company today in a call said that some of their Oman manufacturing 11:33 11 minutes, 33 seconds has been transferred to India. So any oneoff in this quarter 15% volume growth was extremely impressive but that's way ahead of what you have delivered in the 11:41 11 minutes, 41 seconds past few quarters 9 to 11% range. So is there anything new anything oneoff any uh Oman business middle business has been transferred to India? 11:50 11 minutes, 50 seconds No no no there are no first of all there are no oneoffs I think I can ask to further elaborate but absolutely no one-offs. I think uh on the demand recovery you know I've been saying this 11:58 11 minutes, 58 seconds and I said this in the morning in media interactions also I I definitely believe that in the quarter that's gone by quarter one calendar and quarter 4 12:06 12 minutes, 6 seconds financial I think there has been a seen urban demand and we've seen it and you've seen it across the sector across 12:14 12 minutes, 14 seconds other other companies in in FNCG sector I think some of it is flowing through in my opinion from the actions taken in the 12:22 12 minutes, 22 seconds past basically the GST 2.0 And also in our case in discretionary categories I think the the the the 12:32 12 minutes, 32 seconds budget uh announcements which happened in previous year budgets by honorable finance minister and you know that basically where she gave in arguably 12:39 12 minutes, 39 seconds about 100,000 crores in the hands of taxpaying uh Indians I think so there is that you are seeing in discretionary as 12:48 12 minutes, 48 seconds well so coupled with both and while we have no direct benefit on GST as a company You're absolutely right. But I 12:55 12 minutes, 55 seconds think GST reduction coupled with the some other environment gives a gave a philip to discretionary 13:03 13 minutes, 3 seconds uh and sectors and we are a combination of both classic consumer good and a little bit of discretionary. Uh I think that has helped. So these are all uh 13:12 13 minutes, 12 seconds this numbers and before March disruption and the the West Asia conflict we saw some very good numbers in February as 13:21 13 minutes, 21 seconds well and both in January and February as a matter of fact we had a very very good February I can share that with you now that the quarter so I think so therefore 13:29 13 minutes, 29 seconds it is irrespective of any of these things I think it's a there has been a buoyancy uh as I travel across country 13:37 13 minutes, 37 seconds both uh large cities and and small towns I continue to see a buoyancy in demand and I think we have to wait and watch as 13:46 13 minutes, 46 seconds to how long it continues and if at all uh any of the West Asia conflict has any u would be a headwind to it as we go forward. 13:56 13 minutes, 56 seconds One last followup and I'll end there. uh so if uh the entire company has seen 15% volume growth will it be fair to say 14:04 14 minutes, 4 seconds that even the core part so overall seg call including the recent innovations past few years that also would have grown high single to double digit early 14:12 14 minutes, 12 seconds double digit absolutely as a matter of fact I think you've not been following I've been saying this so if you look at if I was to let I think maybe this question will 14:20 14 minutes, 20 seconds come by many people let me just spend a minute on uh sort of talking about the quarter that went by or or the quarter 14:28 14 minutes, 28 seconds we talking about the quarter four. So I think we've delivered this 15.4% in CNB and overall 15.3. I think if I was to 14:36 14 minutes, 36 seconds look at it our growth categories and growth brand first of all delivered continued the momentum but delivered at 14:44 14 minutes, 44 seconds the higher end of the growth band we talk about. So that is Rosfixit both of them delivered really well uh 14:51 14 minutes, 51 seconds you know niche but coupled with that and and that's the we basically our core businesses delivered well as well 15:00 15 minutes especially fol uh you know delivered a a double-digit growth in the quarter that went by. So you are absolutely right and 15:07 15 minutes, 7 seconds it's a combination of basically the portfolio in general uh firing quite uniformly in this case and Sep was 15:16 15 minutes, 16 seconds jokingly saying that all our batsmen played quite well. So I think that's the thing which has happened. So therefore I think that's that is the case. But 15:23 15 minutes, 23 seconds having said that Amish, if you look at it, we've been talking about this for some time and I think as a company we 15:30 15 minutes, 30 seconds would like to continue to raise uh the growth as we go forward and what I'm happy about is to hear talk about the 15:38 15 minutes, 38 seconds FY26 growth UBG growth number which is about 11.3 that has come in at about 120 bits 15:46 15 minutes, 46 seconds higher than the previous year. So this so our desire and our planning is to therefore keep raising this systematically and I think as we go 15:54 15 minutes, 54 seconds forward uh we will see that the other thing which you see in aida margins which you know sep talked about which is 16:02 16 minutes, 2 seconds basically we we delivered about a 300 bits expansion in aida margins see 100 of that is coming through gross margin 16:09 16 minutes, 9 seconds which is largely material benefit which is flown through but the balance is also coming through operating leverage and that's an interesting point again. So 16:17 16 minutes, 17 seconds the moment we lift our growth, I think our operating leverage kicks in uh better and sharper. So I think you know 16:25 16 minutes, 25 seconds so that's the piece. So that in some ways is the story of the quarter and I think maybe relevant to some of the other questions which come in later as well. 16:32 16 minutes, 32 seconds Thank you. That's all from my Thank you. 16:38 16 minutes, 38 seconds Thank you. A reminder to all the participants you may press star and one to ask a question. 16:45 16 minutes, 45 seconds We will take the next question from the line of Sonali Sawer from Jeff. Please go ahead. Uh so thank you for the opportunity and 16:54 16 minutes, 54 seconds congratulations on a great set of numbers. I have three questions. Firstly on the Middle East supply chain disruption as we are standing in May. 17:05 17 minutes, 5 seconds What is the extent of supply chain disruption mainly in VA? We understand that there was a significant jump in 17:13 17 minutes, 13 seconds your operating margin in Q4 probably because you had the earlier lower cost inventory but right now the data 17:20 17 minutes, 20 seconds suggests that one prices have spiked and finished. So how do we force you to navigate this situation? 17:27 17 minutes, 27 seconds Sorry to interrupt in between uh scenario. Could you please repeat your question and use your handset mode? Yes. Is this better? 17:35 17 minutes, 35 seconds Yeah. Yeah slightly better. 17:36 17 minutes, 36 seconds Yes. Thank you very much. Sorry for this. Uh so my first question is regarding the uh Middle East disruption. 17:44 17 minutes, 44 seconds Uh the van crisis have surged. Uh so uh right now it has almost surged by 70% uh 17:50 17 minutes, 50 seconds since the start of the conflict. So how do we foresee to navigate the situation right now? 17:59 17 minutes, 59 seconds Yeah. Yeah. So now so therefore this I think so when you look at West Asia conflict as a management team and as a company we 18:07 18 minutes, 7 seconds have three key priorities. I think our first and foremost priority is the safety of our people there. You know we have uh an operation in Dubai. So I'm 18:15 18 minutes, 15 seconds very happy to report that we are doing well on that count. So I think that's our top priority. Our second and a very important priority is supply security 18:22 18 minutes, 22 seconds and perhaps that's what your question is about. So I think what we've done is to sort of look at all our raw material and uh and and therefore map out everything 18:32 18 minutes, 32 seconds which we sort of consume and see how each one of them gets affected. 18:36 18 minutes, 36 seconds Fortunately for us we've started discussing a possible Iran conflict almost a month before actually the conflict happened. So therefore we've 18:44 18 minutes, 44 seconds basically been able to map some of these things out. We've been constantly looking at alternate supplies if possible wherever possible. So I think 18:52 18 minutes, 52 seconds as a company and in this what we are doing is we basically take this by you know day by day every day but more 19:00 19 minutes importantly weekly monthly quarterly and I'm again happy to report that in the quarter that we are in uh we've secured 19:07 19 minutes, 7 seconds ourself on almost everything. Uh there are a few surprises that keep coming up but we are finding very innovative 19:15 19 minutes, 15 seconds solutions. We are extensively in touch with people where we can get get the thing. So supply security is largely taken care of. And lastly to the point 19:23 19 minutes, 23 seconds of inflation which is the third point I think inflation is real uh on our weighted average uh raw material uh 19:32 19 minutes, 32 seconds basket inflation is anywhere between 40 to 50%. Uh and therefore we are looking at that here our strategy is very clear. 19:40 19 minutes, 40 seconds Our strategy is that we will first pass on the absolute increase in our raw 19:46 19 minutes, 46 seconds material uh prices in rupee terms uh in in a calibrated fashion because our 19:54 19 minutes, 54 seconds focus will remain growth and and disciplined demand generation in the market. So I think we want to sort of 20:02 20 minutes, 2 seconds continue to drive growth and continue to sort of build demand for the products we have. And in this context we've taken 20:09 20 minutes, 9 seconds one price increase in early to midappril uh and we have taken another price increase in early May. So I think 20:17 20 minutes, 17 seconds therefore we are doing this and and and we will keep watching this situation. I think there are two possible scenarios. 20:24 20 minutes, 24 seconds One is that West Asia uh perhaps has a pause or a solution in the month of May itself more likely a 20:32 20 minutes, 32 seconds pause and therefore you know you've come back to somewhat normaly as you sort of uh you know so that is likely scenario 20:40 20 minutes, 40 seconds in in in the month of May we are hopeful on that scenario to be honest with you the other scenario is that this conflict continues for longer uh if the conflict 20:49 20 minutes, 49 seconds uh in the first scenario we we feel that the demand is likely to remain buoyant in a country like India and the 20:57 20 minutes, 57 seconds inflation will be manageable as we go forward although there will be inflation in the year in the second scenario we'll cross the bridge when we come to it but 21:05 21 minutes, 5 seconds we are doing a little bit of scenario planning from a security supply security point of view and we remain quite confident of our disciplined execution 21:14 21 minutes, 14 seconds in this space understood sir so may I ask what is the quantum of the two price hikes that you 21:21 21 minutes, 21 seconds have taken in April and So the price hikes are different by category and you you will get that information from the market as well but 21:29 21 minutes, 29 seconds to just give you an so there are certain categories where there is not that much increase in u in the raw material prices a few categories but they are there as 21:38 21 minutes, 38 seconds well there the the price increase is very muted but there is on the other extent the VA pricing which you which 21:45 21 minutes, 45 seconds I'm sure you've already heard from sep I think you know we'll be it's already hoping at around $1,800 in that case which is call as a brand 21:53 21 minutes, 53 seconds and that our ferry call division there we've taken about a 5% increase in April and we've followed it up with another 22:01 22 minutes, 1 second 78% uh 7 to9 again varies from product category product to product within the perol division as well in early May so I 22:08 22 minutes, 8 seconds would suffice to say about 12 to 15% price increase I'm yeah and also sonali I think the the 22:15 22 minutes, 15 seconds raw material situation is changing every day there was a there was a period where costs were only going up. But if I look 22:24 22 minutes, 24 seconds at last uh week 10 days, given that oil also has corrected from 110 to below 22:31 22 minutes, 31 seconds $100, we've also seen some reversal of some of the increases that we had factored in. So it's a very dynamic uh 22:39 22 minutes, 39 seconds situation, something that we are watching very very closely on a on a weekly basis. uh and suffice to say that 22:47 22 minutes, 47 seconds for uh for for now uh significant amount of the cost increase in rupees terms has 22:54 22 minutes, 54 seconds been factored in uh it's not that we have run down all our lowc cost inventory in March uh we have a very 23:02 23 minutes, 2 seconds healthy uh inventory and particularly in some critical raw materials like warm we carry 23:09 23 minutes, 9 seconds uh much higher than normal uh uh covers uh so we have some protection against inventory even going into the first 23:17 23 minutes, 17 seconds quarter. Uh and it's something in the situation that we continue to watch very very closely. 23:25 23 minutes, 25 seconds Well noted sir. So my second question is regarding rough uh which is especially has the application towards tiles. Now I 23:34 23 minutes, 34 seconds do cover other building material sectors like tiles as well. uh which is why I uh would also be aware that March, April as 23:44 23 minutes, 44 seconds a month at as at these two months there was severe shortage of gas supply especially for the Modi cluster where 23:51 23 minutes, 51 seconds many of the organized child players also had their plans. Uh so the production and the capacity utilization have been 23:59 23 minutes, 59 seconds severely impacted. It's interesting to understand that rough as a category has grown very well for us throughout Q4. So 24:08 24 minutes, 8 seconds would you help us understand exactly uh you know where the end demand was for rough which categories which region so that we can help bridge this gap. 24:20 24 minutes, 20 seconds Yeah. So first of all let me comment and I think you know I as I was saying earlier also I keep traveling all over 24:27 24 minutes, 27 seconds the country. So I think the the uh so your point that MBI got affected is absolutely correct. As a matter of fact, most industries that are gas powered did 24:36 24 minutes, 36 seconds get affected in a reasonably significant way. That's correct. Absolutely correct. 24:40 24 minutes, 40 seconds However, I want to make a a a small correction that when it comes to tiles, 24:46 24 minutes, 46 seconds the stock in the pipeline first and foremost with the dealer and and a little bit otherwise as well is 24:54 24 minutes, 54 seconds very very high. it's considerably higher than most other categories. So my understanding is at least for the formal 25:02 25 minutes, 2 seconds for the for the players uh who are your you know the the the formalized sector those players the uh stock cover is 25:10 25 minutes, 10 seconds quite high. it runs you know so therefore the impact of that immediate impact on of that on demand is not 25:17 25 minutes, 17 seconds likely to be seen and will be an impact only if it's a protracted west Asia conflict with a severe gas issue even 25:26 25 minutes, 26 seconds then so therefore the fact that gas powered industries have got affected absolutely correct they were operating 25:34 25 minutes, 34 seconds at a very low uh capacity utilization in this period absolutely correct but is less stock available in the market? 25:41 25 minutes, 41 seconds Absolutely yes. Is construction going on and therefore tiles getting fixed and therefore roof getting used? Absolutely 25:48 25 minutes, 48 seconds yes. So I think that's how I would say at least as of now all these things all these things will change supposing it's 25:56 25 minutes, 56 seconds a protracted and a severe waste Asia conflict which uh is the scenario at so the so the probability of that at this 26:04 26 minutes, 4 seconds moment is a little low in our judgment or in everyone's judgment. 26:09 26 minutes, 9 seconds Understood. So very clear and last question from my end any update update on paint. 26:16 26 minutes, 16 seconds Uh the last question is update on paints. Yes. 26:21 26 minutes, 21 seconds Yeah. Yeah. Yeah. So paints I think see what is happening on paints is uh two three things I think one as we uh 26:30 26 minutes, 30 seconds look at our business we are seeing better or good traction if I can use the word in rurban India which 26:38 26 minutes, 38 seconds is rural and very very small town so that part of the business is doing well we were there in the five southern 26:46 26 minutes, 46 seconds states southk as you guys know but we've gone into west Bengal gone into bihar So our urban piece is doing uh doing 26:55 26 minutes, 55 seconds okay. I think when we start looking at slightly bigger towns what we call internally small town India uh I think 27:04 27 minutes, 4 seconds that's where what is the what is the unique uniqueness which pedilite has to bring in what is the tweak needed in the 27:12 27 minutes, 12 seconds business model what will be our USB as pedilite to give us that right to win is something still work in progress and I 27:20 27 minutes, 20 seconds think once we are able to solve for that is when you will see a fullscale expansion uh Other than that we are sort 27:27 27 minutes, 27 seconds of at it. Uh you know we there is growth as I told you uh good growth in rurban I can tell you uh and uh I think so we 27:36 27 minutes, 36 seconds will keep working towards finding that unique bidike signature and therefore our right to win. 27:44 27 minutes, 44 seconds Understood sir. Thank you. Very clear and all the best to the team. Thank you. 27:51 27 minutes, 51 seconds Thank you. We will take the next question from the line of Sid Gandhi from IF Captain. Please go ahead. 28:00 28 minutes Uh hi uh this is Percy Panti here. Uh sir, continuing on the uh uh cost inflation part uh could you help us with 28:09 28 minutes, 9 seconds understanding at the current spot prices for your product portfolio market? What 28:17 28 minutes, 17 seconds is the overall weighted average inflation in the COGS? 28:22 28 minutes, 22 seconds So we I spoke about it in sometime back Percy I think first of all good to hear from you but I think firstly the uh it's in the range of 40 to 50 cent as as our 28:31 28 minutes, 31 seconds as our weighted average uh raw raw material basket. So I think that's where it is. Uh that is at the current 28:39 28 minutes, 39 seconds replacement price. But as sep rightly pointed out uh just in the previous question I think if I'm not mistaken the 28:46 28 minutes, 46 seconds situation is rather dynamic peri so I'm saying the point is if we were to look at the peak that number this is the number but I think we are seeing a few 28:54 28 minutes, 54 seconds raw materials coming off the peak. So therefore that's why I tell you the approach which I highlighted and and 29:01 29 minutes, 1 second maybe it is uh it maybe I'll repeat it and then the risk of repetition you know for everyone is actually our approach is 29:08 29 minutes, 8 seconds that we're looking at this um uh replacement margin so to say at the current costs and saying that first and 29:15 29 minutes, 15 seconds foremost how do we transfer these costs in a calibrated fashion into the market calibrated and and sort of say word 29:23 29 minutes, 23 seconds staggered a little bit. So therefore and we've done two rounds, one one in midappril and one in early May. Uh and 29:31 29 minutes, 31 seconds then we'll keep watching the situation as we go forward to take any further action because our our topmost priority 29:38 29 minutes, 38 seconds is to continue uh uh basically uh our focus on growth and and continue to do all the demand 29:47 29 minutes, 47 seconds generation activities which we need to do. And as a matter of fact, you may have seen that I we have continued with 29:54 29 minutes, 54 seconds our big campaign on ferry call in this environment. I'm saying that's of course above the line, but we are doing a lot of the stuff below the line as well, which is our field marketing activities. 30:04 30 minutes, 4 seconds So our focus is on continuing to to remain steadfast on on delivering a double-digit underlying volume growth 30:12 30 minutes, 12 seconds and do demand generation appropriately as we go forward. 30:17 30 minutes, 17 seconds Just a clarification this 40 to 50% was for the COGS of SE call or the company as a whole 30:26 30 minutes, 26 seconds weighted average company my dear okay got it uh second question uh is uh 30:33 30 minutes, 33 seconds in the past based on your experience for your product portfolio what is the price elasticity of demand so what I'm trying 30:42 30 minutes, 42 seconds to say is that let's say uh uh in a environment of close to zero pricing uh growth last year you did a volume of 30:51 30 minutes, 51 seconds let's say 10%. Uh uh now supposing this year also if the inflation was flat and the growth was zero assuming uh uh 31:00 31 minutes demand being similar like that's the base case that zero pricing and 10 uh volume but if let's say the pricing goes 31:08 31 minutes, 8 seconds from zero to let's say a 10 or a 15 the volume which is at 10 that comes down to how much? So is it 50% of 31:17 31 minutes, 17 seconds [clears throat] the price increase which is a volume backlash? Is it a 20%, is it a 80%, what is your experience and what 31:24 31 minutes, 24 seconds what is your expectation given the current uh macro situation? 31:30 31 minutes, 30 seconds The current macro situation first of all is rather unique. It's different from anything which has happened in the past including co because I was recently in 31:38 31 minutes, 38 seconds the market. There is 30% increase in pipe. There is about 15% increase in paints. uh we are around similar zone uh 31:46 31 minutes, 46 seconds and as of now cement has not uh you know declared but there would be increase in cement as we go forward. There will be increase in in fuel prices as we go 31:55 31 minutes, 55 seconds forward which have not yet been declared. So the cumulative impact of a lot of this on demand is something which needs to be studied needs to be 32:03 32 minutes, 3 seconds understood and as I was saying person in the previous question see my request to you all is that there's a there are 32:10 32 minutes, 10 seconds basically two scenarios a scenario one which is that west Asia conflict is contained or or at least partly resolved 32:19 32 minutes, 19 seconds in the month of May and there is a good chance of that to be honest with you that's our understanding scenario two is west Asia conflict continues for much 32:27 32 minutes, 27 seconds longer longer and and it's also it is longer and it is tougher or whatever word I can use. So basically in the in 32:36 32 minutes, 36 seconds the case of scenario one I think we are going in with the hypothesis that the uh the demand buoyancy which India saw in 32:44 32 minutes, 44 seconds the last quarter of FY26 will more or less sustain and therefore in that if we then manage the inflation 32:53 32 minutes, 53 seconds better as we go forward and therefore inflation will also hopefully come down in the second half of the of the year although you'll have to manage inflation 33:01 33 minutes, 1 second through this year I think in the combination of these two you've got to you've got to do from a demand generation point of view and growth 33:10 33 minutes, 10 seconds treat it as business as usual that is our going in position now what happens if the scenario two plays out I think we 33:18 33 minutes, 18 seconds are currently focused on on supply security in that scenario and we will talk about it if that scenario plays out 33:28 33 minutes, 28 seconds so as of now should we just assume that whatever pricing you take is completely incremental to the top line and there is no volume backlash that you expect. 33:39 33 minutes, 39 seconds This I leave to you. I will not be able to give you your formula for the thing. 33:43 33 minutes, 43 seconds But so some of it to be to be honest with you with this kind of inflation per to be honest with and again now on a more serious note uh if you were to look 33:51 33 minutes, 51 seconds at FY27 with the kind of inflation across uh categories across uh businesses uh will there be some demand 34:00 34 minutes compression? What will be the quantity of demand compression and when will it come is difficult to predict at the 34:07 34 minutes, 7 seconds moment. I can tell you for the quarter I can tell you for the period which we have seen. So what I have seen up to now and I we've been traveling quite 34:16 34 minutes, 16 seconds extensively because of this dynamism in the situation. I can tell you as of now it seems rather intact. But will this 34:23 34 minutes, 23 seconds kind of inflation once it settles in fully will should there be any kind of demand contraction how much will it be 34:31 34 minutes, 31 seconds and when will it be is something to be watched out for. So to be fair to say that the full year should you assume that it'll be the same my answer is no. 34:40 34 minutes, 40 seconds But should we continue to see the momentum in the quarter 1 my answer is perhaps yes. So I think you know here now as we go forward uh par we've got to 34:49 34 minutes, 49 seconds look at month maybe ideally week month and a quarter and then see and then keep revising it as you go forward. So a week 34:58 34 minutes, 58 seconds month quarter again a week month quarter and that's the way you've got to decide here here you cannot talk of uh two years full of this year because it's very very dynamic my friend. 35:10 35 minutes, 10 seconds Got it. Last question on margins. 35:12 35 minutes, 12 seconds Assuming that we settle let's say at 85 to 90 kind of crude level for the rest of the year. Uh uh what kind of margin 35:21 35 minutes, 21 seconds can we expect? Do we expect it at the lower end of your band which you said you earlier said that you want to maintain a 20 to 24% kind of band. So do 35:31 35 minutes, 31 seconds we expect it closer to a 20% uh this year if the crude sort of remains at a 85 90 level? 35:39 35 minutes, 39 seconds So it'll depend on see crude is one marker but as deep was saying I think some of the other raw materials are 35:46 35 minutes, 46 seconds linked to crude but not entirely. So it depends on what is the inflation because some of the inflation could be much higher than crude as well or in many 35:54 35 minutes, 54 seconds cases it could be lower. So it depends on that case as far as we are concerned at this moment I would say we've guided a corridor of 20 to 24%. 36:03 36 minutes, 3 seconds uh we stay committed to that guidance and uh last year of course with the benign input costs we delivered at the 36:10 36 minutes, 10 seconds higher end of the guardian uh guidance uh this year with the the raw material inflation uh it'll be different but we 36:18 36 minutes, 18 seconds stay committed to that kind of number so I think you are right so it could be it it'll depend as we go forward it's very difficult to say uh for the year and I 36:26 36 minutes, 26 seconds think these things are only meaningful for the year not for a quarter or anything understood thank Thank you very much sir. That's all for me. All the best. 36:36 36 minutes, 36 seconds Thank you. 36:38 36 minutes, 38 seconds Thank you. A reminder to all the participants. You may press star and one to ask a question. We will take the next 36:45 36 minutes, 45 seconds question from the line of Naventi from Motila Loal Financial Services. Please go ahead. 36:52 36 minutes, 52 seconds Yeah. Hi uh good evening everyone. Uh my first question is on the in the consumer in Bazar. Can you give us a bit more 36:59 36 minutes, 59 seconds understanding about uh this sharp 15% volume growth which we had witnessed in the fourth quarter uh was there three 37:07 37 minutes, 7 seconds bank benefits also built up uh in the fourth quarter and how should we see the trend going ahead what benefits as I couldn't get that 37:15 37 minutes, 15 seconds what did you say some trade three bank benefits in anticipation of price activity would have been seen 37:22 37 minutes, 22 seconds trade stock trade oh okay okay I didn't yeah no no so I as I was saying in response to an earlier question. I think 37:30 37 minutes, 30 seconds first of all we have been seeing reasonable buoyancy in demand uh and I can share with you that we had a very 37:38 37 minutes, 38 seconds robust February and I can also share with you that at at Pilite we have continued with our philosophy of not uh 37:46 37 minutes, 46 seconds loading in any form in the month of March. So we always have and which is a which is an which is a well tested old 37:54 37 minutes, 54 seconds pit light practice which is to sort of you know towards the second half of March contrary to what many other companies may do we actually sort of you 38:03 38 minutes, 3 seconds know uh but we don't not only not load we go a little slow and then we start fast in April that's our that's that is 38:10 38 minutes, 10 seconds the pattern we follow and that's been what we've been doing this year has been very similar I can tell you that I think is it half a percent here and there some of that could have happened somewhere. 38:21 38 minutes, 21 seconds You can't vouch for every 100% but the point is that we followed this philosophy and the same has been practiced as we went into March and the 38:29 38 minutes, 29 seconds same has also with data being seen with our start to April. So I think therefore uh to answer your question no if I could 38:36 38 minutes, 36 seconds say so this is a buoyancy and as we were saying earlier see the thing is that we've seen this buoyancy and therefore 38:44 38 minutes, 44 seconds what has happened is that our growth categories have delivered to very well on growth. So that momentum has 38:51 38 minutes, 51 seconds continued has only accelerated and some of our growth brands have delivered at the higher end of our growth uh growth c 38:59 38 minutes, 59 seconds growth brands guidance and our core categories have also done well including our big brand which is delivered in double digit. 39:07 39 minutes, 7 seconds So is it fair to say that uh and behind all of this there are things like innovation, things like field marketing many of those. So I don't get 39:15 39 minutes, 15 seconds into that detail. So all that work is happening. We've been continuously doing some of this and we've been lifting it up between you and me. I think you know and SAP have been talking about lifting 39:24 39 minutes, 24 seconds our growth for some time now and I think what I what I'm want to do share is that for the year I think that's the way to look at it. In the year we've been we 39:32 39 minutes, 32 seconds managed to lift our underlying volume growth which is most important. again price here there price there underlying volume grows by about 100 plus uh BPS 39:40 39 minutes, 40 seconds and I think that's that's the that is the journey we would like to stay steadfast on sure sure that's thank you so much and 39:49 39 minutes, 49 seconds any color about the uh the market share point of view also so although consumer bazar is a very diversified portfolio but any any core categories where you 39:58 39 minutes, 58 seconds can give us some sense about uh how has been our market share movement during this period uh or how has been the kind 40:06 40 minutes, 6 seconds of industry growth during this time especially the core categories if you can give us some color yeah so I think there as we as I said at 40:14 40 minutes, 14 seconds the same point there's been a buoyancy in the market so there the market would have grown a bit better but I think our performance is a combination of three 40:22 40 minutes, 22 seconds things I think a natural buoyancy particularly a little bit more buoyancy in urban urban India and and therefore 40:29 40 minutes, 29 seconds for us while our rural growths have come in ahead actually again like year on year even in this year and this quarter 40:37 40 minutes, 37 seconds but our urban growth have picked up so I think therefore there is buoyancy the second piece which is there is that all the work which we do we've intensified 40:45 40 minutes, 45 seconds in several areas our work on on demand generation and field marketing and I think that's bearing some fruit particularly in construction chemicals 40:54 40 minutes, 54 seconds uh and Dr. fix it. And lastly, I think there are there is some market share gain as well because the kind of growth we are seeing, we are clearly growing 41:02 41 minutes, 2 seconds ahead of the market in some of our growth categories and maybe in some of our core categories. 41:09 41 minutes, 9 seconds Sure. Sure. Sure. Uh and uh in terms of in terms of the price you mentioned about uh you you will take very 41:16 41 minutes, 16 seconds calibrated approach this time despite this sharp headline inflation. Uh how are you seeing the competition side? Are they also uh following similar approach? 41:26 41 minutes, 26 seconds Uh or you see that there can be an opportunity given you may have a uh cost efficiency and you also like Sundep was 41:35 41 minutes, 35 seconds mentioning about you also have uh inventory in your hand. So do you think that uh these are the times when you can further look for a market share gain? 41:44 41 minutes, 44 seconds No I think the way they are looking at it first of all I think factually the competition has done similar kind of price increases. uh a few of them 41:52 41 minutes, 52 seconds actually did it in March as well uh some of them but I think so therefore price increase has been commensurate it's not or similar comparable 42:00 42 minutes um I think the point is that we would like to continue to do what is right to gain share and I think you know we wouldn't do anything just tactical to be 42:08 42 minutes, 8 seconds honest with you and and as far as we are concerned to Sep's point as well see we are initially passing on the increase in 42:16 42 minutes, 16 seconds raw material cost in absolute rupee terms so therefore some of the question which we app comes in handy in sort of managing the margin also as we go forward. 42:27 42 minutes, 27 seconds Sure. Sure. Just last one bookkeeping uh the employee expenses up only 3% uh uh in in the standalone uh in this quarter 42:36 42 minutes, 36 seconds uh despite like this year we have been kind of quite double digit growth and uh even if I look at the annualized number 42:43 42 minutes, 43 seconds it is kind of over 8% up uh how should you look at this expense going ahead and any any oneoff in the this quarter 42:50 42 minutes, 50 seconds yeah there was a little bit of uh one off uh so I think the first of all I think the right way to look at uh 42:59 42 minutes, 59 seconds manpower cost is to take the fullear manpower cost and from that you strip out all the impact of this wage code 43:08 43 minutes, 8 seconds that I think will give you the comparable fullear uh manpire cost number and that uh for your projections 43:17 43 minutes, 17 seconds you could divide it by four and that's your base for next year uh specifically in this quarter uh and compared to the 43:26 43 minutes, 26 seconds base quarter which was fourth quarter of last year. So what we had done was in the fourth quarter of last year we had recognized a provision of about 17 18 43:36 43 minutes, 36 seconds crores uh towards a discretionary benefit to be given to employees. Uh because of the new wage code we felt 43:45 43 minutes, 45 seconds that there was no need to continue with that discretionary benefit given that everybody's graduity uh uh benefits will 43:52 43 minutes, 52 seconds get elevated under the new wage code. So that discretionary benefit we uh uh wrote back in the fourth quarter both 44:00 44 minutes amounts are round if I round off around 2020 crores. So for for your for sake of comparison you subtract 20 crores from 44:09 44 minutes, 9 seconds Q4 last year add 20 crores to Q4 this year and you'll get about 11 11 12% increase in wage costs which is pretty 44:18 44 minutes, 18 seconds much in line with which would be the right number. 44:23 44 minutes, 23 seconds So, so take the full year number take out the one off because of wage code and that becomes your base for uh FI2627 44:32 44 minutes, 32 seconds and specifically for Q4 I have addressed your housekeeping question. The actual comparable growth is about 11 and a half%. 44:41 44 minutes, 41 seconds Perfect. Thank you so much and all the best. Thank you. Thank you. Thank you. 44:48 44 minutes, 48 seconds The next question is from the line of Rajeshwari from it PMS. Please go ahead. 44:56 44 minutes, 56 seconds Uh thanks for the opportunity and congratulations for the great EVG recorder. Uh I have three questions. So the first is on the manufacturing capex. 45:07 45 minutes, 7 seconds Uh I understand that the growth in finance categories would need more investment but in core categories can we say that we have invested ahead of 45:16 45 minutes, 16 seconds demand or uh it still needs continuous expansion. 45:21 45 minutes, 21 seconds Sorry to interrupt in between Rajes. Uh can you please repeat your question and use handset mode? 45:27 45 minutes, 27 seconds Yeah sure. Uh is it better now? Yes. Yes. It's better. 45:36 45 minutes, 36 seconds Yeah. Uh yeah sure I have three questions. Uh first is on the manufacturing capex. So understand the 45:43 45 minutes, 43 seconds growth and final categories will be more investment in terms of manufacturing but in other categories are you sure that we 45:51 45 minutes, 51 seconds have invested ahead of demand or still needs continuous expansion and I'd like to know the level of opinion that you have done in manufacturing. 46:04 46 minutes, 4 seconds Yeah. So first question I think we talked about it in the past also our our trafficics tends to be roughly 3 to 5% of our uh revenue turnover. I think Sep 46:13 46 minutes, 13 seconds also alluded to it in his opening commentary I think. So therefore you know and last year we've come in at about the median of that number or an average of that number. So I think 46:21 46 minutes, 21 seconds that's the thing and as far as that capex philosophy is concerned there are three buckets in which we do capex. One is uh classic growth capex in order to 46:31 46 minutes, 31 seconds sort of antic we anticipate our growths in different growth categories and in general as growth and see how we are 46:38 46 minutes, 38 seconds placed as capac you know do we have the right capacity and therefore there is capex to augment and and be ready for the growth. The second capex which we do 46:47 46 minutes, 47 seconds in car and is around basically automation, consolidation and major 46:53 46 minutes, 53 seconds renovation of some of our existing core categories especially premium white glue. So I think uh that's one area 47:01 47 minutes, 1 second where as as we speak in this quarter 1 of FI27 uh we would be commissioning a large 47:08 47 minutes, 8 seconds plant in West India uh for our uh premium white glue and ferry call I think. So that's an area which we keep 47:14 47 minutes, 14 seconds doing from time to time and third is for newer categories or newer areas we get into. So those are the three buckets. Uh we will continue to invest in all three 47:23 47 minutes, 23 seconds buckets appropriately but suffice to say the band is 3 to 5%. And I think we'll remain in that plan but 47:31 47 minutes, 31 seconds no no I think you you've covered it. So K capeex is something that as a capacity planning is something that we do very 47:38 47 minutes, 38 seconds very uh rigorously uh because the last thing we want is not being able to put material on the shelf because we run out 47:46 47 minutes, 46 seconds of capacity. Uh obviously the growth businesses will require more capex because they will run out of capacity 47:53 47 minutes, 53 seconds faster. But uh even in core we would do uh capeex not only to augment capacity 48:00 48 minutes but also to automate and to uh make the whole manufacturing process efficient. 48:05 48 minutes, 5 seconds Last year we would have spent close to 570 crores on capeex compared to 430 in the prior year. 48:16 48 minutes, 16 seconds Uh yeah that helps. And my uh second question is that uh we have around uh six segments right three in consumer and 48:24 48 minutes, 24 seconds desire and three in B2B. So how many of these uh six segments we have uh export exposure like the B2B pigments and 48:32 48 minutes, 32 seconds preparations we are already exporting but I want to understand about the rest of the segments and the uh geographical coverage. 48:42 48 minutes, 42 seconds Yeah. So our major export exposure is in pigments as you rightly pointed out 48:48 48 minutes, 48 seconds Rajes. Al although having said that we do export our finished goods u to many countries but that export 48:58 48 minutes, 58 seconds basically need not follow the west Asia route all the time. There is some export to west Asia directly. So therefore a 49:07 49 minutes, 7 seconds direct exposure on exports is is pigments and in in Finnish goods there is that Asia export but then there are export to other places which are perhaps 49:16 49 minutes, 16 seconds independent of this conflict. So therefore overall suffice to say that our exposure to exports is small as a 49:24 49 minutes, 24 seconds company as perilite and therefore exports not coming through will not dent the overall performance of our company 49:33 49 minutes, 33 seconds in any significant measure. If exports come through that will be the icing of the cake. 49:43 49 minutes, 43 seconds Uh yeah thank you. Uh and then my last question is that u I would like to know uh how much percentage of our raw 49:51 49 minutes, 51 seconds material basket constitutes VA. Uh so uh you know to uh understand the income code volatility in our margins better. 50:01 50 minutes, 1 second So as of if you look at last year it would be less than 10% of our uh and and I'm expressly calling out that if you 50:10 50 minutes, 10 seconds look at FI2526 VA warm would be uh under 10% of our raw material consumption for the company. 50:18 50 minutes, 18 seconds This year it would be a different story but last year was less than 10%. 50:24 50 minutes, 24 seconds Yeah that is. Thank you. That's also my Thank you. We will take the next 50:33 50 minutes, 33 seconds question from the line of Jay Doohi from COTC Securities. Please go ahead. Yeah. Hi, thanks for the opportunity. 50:42 50 minutes, 42 seconds See for the past 11 quarters you were consistently delivering a 10% UVG which accelerated to 15% in 4Q. So if one 50:52 50 minutes, 52 seconds assumes that West Asia situation you know probably stabilizes and raw material prices normalize in the next 2 50:59 50 minutes, 59 seconds 3 months should we expect FI27 UVG to be higher than FI26 say somewhere between 11 to 15%. 51:09 51 minutes, 9 seconds So J I think this is a I to answer your question this is a stated position. I think if you look at of course you've talked about last uh 8 10 quarters and 51:17 51 minutes, 17 seconds then a blip in this quarter that's that is also right and that's one way to look at it. uh the way I'm looking at it is a bit more uh you know if you look at year 51:26 51 minutes, 26 seconds on year I think so therefore we've been in expanded by about 120 bits in FI26 in terms of UVG uh so therefore you know so 51:35 51 minutes, 35 seconds yeah but I think this about 100 on bits expansion as we go forward uh is something we 51:44 51 minutes, 44 seconds would we we are planning for and we would like to deliver. 51:48 51 minutes, 48 seconds I think if I may add Jay, I think you know uh this question uh would have been asked for the last two years that uh 51:56 51 minutes, 56 seconds your margins have are expanding, input costs are benign. So what are you doing? 52:02 52 minutes, 2 seconds And our response has always been that our first endeavor will be to reinvest all the headroom that we have in margin 52:09 52 minutes, 9 seconds behind getting faster growth. uh because there is no substitute for growth and that uh and I think if you see the 52:16 52 minutes, 16 seconds result uh over the last seven or eight quarters uh each quarter last year our 52:23 52 minutes, 23 seconds uh UVG was more than 9%. Uh and for the year we were nearly 200 bips higher than what we declared in FI25. 52:33 52 minutes, 33 seconds uh so the endeavor from the uh from our side is to uh drive investments so that 52:41 52 minutes, 41 seconds we can get faster growth. So that that as an intent uh has not changed. It remains uh we saw results all of last 52:50 52 minutes, 50 seconds year and we saw very healthy results in the last quarter. So that that remains our our endeavor. What will be the 52:57 52 minutes, 57 seconds outcome? I think given the situation that we are in, it will be very difficult to hazardous I guess as to what will happen in this year it's not a 53:06 53 minutes, 6 seconds normal year. Uh if it was a normal year maybe yes uh what you are saying would have been something that we could have 53:13 53 minutes, 13 seconds uh agreed to but this year is very unique and special. So no I don't think we will hazard a guess as to what will 53:21 53 minutes, 21 seconds be the UVG for this year. It's too early to say. 53:24 53 minutes, 24 seconds Understood. Uh one uh bookkeeping question. So UVG is basically volume and mix right now if Roth is growing much 53:33 53 minutes, 33 seconds faster than the company and because it's a low value product does it have a uh you know adver is basically is your 53:40 53 minutes, 40 seconds tonnage growth even growing faster than UVG absolutely we've talked about it many times so what you call total volume growth 53:48 53 minutes, 48 seconds is uh order of magnitude different from our UVG and that's a great question you've asked J most people treat our UVG as volume 53:57 53 minutes, 57 seconds growth. This is not volume growth. This is turnover growth at constant price. 54:01 54 minutes, 1 second And our total volume growth is order of magnitude different order of magnitude. It will be in multiples of that. Yeah, it is in multiples. Absolutely. 54:09 54 minutes, 9 seconds Understood. Uh a couple of more questions. One is are you seeing unorganized player sort of struggle a little bit because of supply chain 54:17 54 minutes, 17 seconds disruption hurting them more than you know a large organization like yours? 54:21 54 minutes, 21 seconds And if so then uh have you started seeing some market share gains in some categories where you know your market 54:27 54 minutes, 27 seconds share are still sort of you know uh not as high as let's say 80 90% that you may have in sorry 54:35 54 minutes, 35 seconds certainly there are market share gains in Thail but that does not have that much of a unorganized play the four top four five 54:44 54 minutes, 44 seconds players pretty much account for 90 80 to 90%. I think uh your point is generally correct J which is that basically uh the 54:53 54 minutes, 53 seconds unorganized sector struggles a little bit in this kind of volatality without doubt and basically uh compared to more 55:01 55 minutes, 1 second organized players and more u I think very early at this moment to say uh to comment on this uh but we are ready to 55:10 55 minutes, 10 seconds we we stay focused on uh securing supplies making sure that we have goods available and and servicing ing the 55:17 55 minutes, 17 seconds demand. So therefore to that extent we are very well equipped and if some of this gives us some additional gains in the market then so be it. I think that's 55:24 55 minutes, 24 seconds the piece which is there but a lot of it is it's slightly early I think in my opinion and I just want to correct you J we 55:32 55 minutes, 32 seconds don't have 80 90% share in call I don't want to go that on record. I'll correct it. Okay. 55:41 55 minutes, 41 seconds Thank you. 55:42 55 minutes, 42 seconds May maybe we'll ask you offline because you always [laughter] uh one final one. Uh I think FI26 was a 55:50 55 minutes, 50 seconds year where uh you know there's acceleration in waterproofing and we had called out a couple of quarters back you know the 3 four years prior to that waterproofing was not growing as fast as 55:59 55 minutes, 59 seconds what perhaps you know we would have liked. uh does that momentum continue and uh uh in that case you know why is 56:06 56 minutes, 6 seconds it that Mina percept is still sort of you know having volatility from quarter to quarter uh you know not being that uh 56:13 56 minutes, 13 seconds great uh no so I think the first question is absolutely the first part of your question is affirmative that indeed 56:20 56 minutes, 20 seconds we have seen our waterproofing business get back to the kind of levels that a growth category should grow at and that 56:27 56 minutes, 27 seconds growth rates have improved uh every quarter I I think the issue with NINA is not about lack of orders. Uh we have a 56:35 56 minutes, 35 seconds very very healthy order book. I think what happens in winter uh period particularly end of Q3 beginning of Q4 56:43 56 minutes, 43 seconds is that because of these pollution restrictions lot of construction sites don't get permission to uh uh do work. 56:52 56 minutes, 52 seconds So you may not get workfront availability. uh so in cities like Delhi, Bombay, Hyderabad the local authorities will impose restrictions. 57:01 57 minutes, 1 second You are aware of this grab one, grab two, grab three that happens in Delhi. 57:05 57 minutes, 5 seconds So a lot of activity gets curtailed and that construction is one uh uh one activity that gets impacted. It's not 57:12 57 minutes, 12 seconds waterproofing that gets impacted but overall if that site is not allowed to do any work, they can't do waterproofing also. Not that I mean our processes are 57:20 57 minutes, 20 seconds not creating dust pollution or anything of that sort but the overall site work comes to a bit of a halt. 57:28 57 minutes, 28 seconds Yeah. Yeah. That's a great point and just to build on it Jay I think so retail waterproofing and therefore to Sunny's point and therefore you are seeing very good growth in Dr. Pix. So 57:37 57 minutes, 37 seconds retail waterproofing and and smaller jobs which are done at homes and all that continue but all these construction 57:44 57 minutes, 44 seconds jobs which prefer to which is where Nenina steps in. Nina steps in for more specific uh you know apply and supply 57:52 57 minutes, 52 seconds kind of jobs. So that's where it gets a little bit slightly seasonal. The order book is there. We can we we'll deliver. 58:00 58 minutes So I think the fundamentals are all okay. I don't think there's anything to worry about that. 58:04 58 minutes, 4 seconds In fact also our our projects waterproofing that has grown even faster than retail because we started off we were a late starter in that category. So 58:13 58 minutes, 13 seconds the waterproofing product sales have done exceptionally well. It's just that the application in some sites has got 58:20 58 minutes, 20 seconds impacted because of these local restrictions. 58:24 58 minutes, 24 seconds Understood. Thank you so much and congratulations uh on it. Thank you. Thank you. 58:30 58 minutes, 30 seconds Thank you. We will take the next question from the line of AIA from Mquiri Capital. Please go ahead. 58:37 58 minutes, 37 seconds Yeah. Hi team. Uh am I? Yes, you are. Yes. 58:42 58 minutes, 42 seconds Yeah. Sir uh sir just uh one question conceptual uh you know as a you know while we when we look at consumer staple 58:50 58 minutes, 50 seconds companies we do understand price hikes tend to be relatively favorable from a revenue growth perspective uh for our 58:59 58 minutes, 59 seconds categories because you know pigite is not one category right it's multiple categories that we understand how would you classify this would you say that uh 59:08 59 minutes, 8 seconds price hikes are neutral negative positive how should we look at it uh and I'm not talking about very sharp price 59:15 59 minutes, 15 seconds increases obviously but now I'm assuming this west conflict kind of cool 59:22 59 minutes, 22 seconds yeah so a I think like you said for TPG companies or FMCG companies even for pedilite both in our we have a consumer 59:30 59 minutes, 30 seconds business but also the Baja business uh not sharp price increases which you 59:38 59 minutes, 38 seconds yourself qualified also but price increases uh if if you have a till that inflation you can get that price increase with demand situation remaining 59:46 59 minutes, 46 seconds the same you will get your UVG and on top of that you will get the price as a kicker absolutely for us as well 59:54 59 minutes, 54 seconds perfect perfect and just second bookkeeping question I missed this VA number for the quarter I'm apologies if you had shared this if you could kind of 1:00:02 1 hour, 2 seconds just highlight that that's all from my side VA for the last quarter was around $840 1:00:10 1 hour, 10 seconds uh a ton pretty much in line with uh the previous quarter. Okay, thank you. That's okay. 1:00:18 1 hour, 18 seconds Thank you. We can take last question. 1:00:22 1 hour, 22 seconds Thank you. We will take the last follow-up question from the line of Abdish from Noama Institutional Equities. Please go ahead. 1:00:31 1 hour, 31 seconds Yeah, very quick followup given 1 hour is up. Uh so first is vam supply demand any change to any factory has gone out 1:00:38 1 hour, 38 seconds of production or any thing in middle east US or Iran have hit any any clarity on the demand side any acceleration globally. 1:00:48 1 hour, 48 seconds So so ma'am yes there were some uh supply disruptions from vendors who are located in that area. So we had a supply 1:00:57 1 hour, 57 seconds source in Saudi Arabia which obviously uh got impacted. uh but I think there is abandoned uh supply uh globally. So I 1:01:06 1 hour, 1 minute, 6 seconds mean or or in the region from which we would be most cost effectively sourcing. 1:01:10 1 hour, 1 minute, 10 seconds So we've you know looked at we have in the past also looked at such supply sources uh and and particularly lot of 1:01:18 1 hour, 1 minute, 18 seconds it will be in China. So those are the sources that we are now exploring 1:01:24 1 hour, 1 minute, 24 seconds uh uh uh in terms of ensuring our supply uh continuity. So there is no there is 1:01:31 1 hour, 1 minute, 31 seconds no concern on availability. Now last time uh we had seen the VAM remain 1:01:39 1 hour, 1 minute, 39 seconds inflationary for a fairly long time. So this time it's basically geopolitical issue. So if that gets resolved so it could cool off also very quickly, right? 1:01:48 1 hour, 1 minute, 48 seconds I'm not saying it can go back to the earlier price but current prices can cool off significantly. So yes, the answer is yes. Absolutely. 1:01:55 1 hour, 1 minute, 55 seconds Yes. 1:01:57 1 hour, 1 minute, 57 seconds Now last question. uh essentially you mentioned on pricing on FEBI calls uh but as a portfolio also you have seen 40 1:02:05 1 hour, 2 minutes, 5 seconds 50% RM inflation so as a as an analyst it will be very good to understand overall console price like will it be 1:02:12 1 hour, 2 minutes, 12 seconds more like 7 to 8% in the in the India business no higher than that I think Suzanu mentioned no at a at a company level 1:02:20 1 hour, 2 minutes, 20 seconds we've taken in April around 4 to 5% and in early May another 7 to 8% Right. And 1:02:28 1 hour, 2 minutes, 28 seconds these are blended at company level. It will be different at different categories for different categories. But at a at a blended company level, that's 1:02:36 1 hour, 2 minutes, 36 seconds the quantum of pricing that has already gone in. Yeah. Just a quick one to add to SEP's point. 1:02:44 1 hour, 2 minutes, 44 seconds So while factually exactly correct and that's what we've been saying. But you see in a bazaar business the situation is a bit dynamic. So now therefore for 1:02:52 1 hour, 2 minutes, 52 seconds the year and I want to be clear because I'm seeing all of you guys. So for the year depending on how the raw material will behave if supposing as you we just 1:03:00 1 hour, 3 minutes your first question which you said could it cool cool off quickly if it indeed cools off quickly it'll have to be passed back in some form so therefore 1:03:08 1 hour, 3 minutes, 8 seconds can you build in that for the year the answer at this moment is no but let's see how the things play out and therefore that equation and our focus of 1:03:16 1 hour, 3 minutes, 16 seconds niche as I'm telling again and again Sep and I've been absolutely reiterating is to drive underlying volume growth to drive demand and to stay stead fast on 1:03:26 1 hour, 3 minutes, 26 seconds growth. So not try and do some short- termism on any kind of price. 1:03:30 1 hour, 3 minutes, 30 seconds Understood. Thank for taking my follow-up question. Uh that's all for my time. Thank you. Thank you. 1:03:38 1 hour, 3 minutes, 38 seconds Thank you very much ladies and gentlemen. As there are no further questions from the participants with that concludes the question and answer 1:03:45 1 hour, 3 minutes, 45 seconds session. I now hand the conference back to the management for closing comments. 1:03:51 1 hour, 3 minutes, 51 seconds Uh no no further closing comments. Thank you everybody on the call for their continued interest in Pitilite and uh 1:03:58 1 hour, 3 minutes, 58 seconds we'll see you again uh around our after our Q1 results. Thank you. Bye. 1:04:05 1 hour, 4 minutes, 5 seconds Thank you members of the management. On behalf of COTC Securities, we conclude the Pedlite Industries limited conference call. Thank you all for 1:04:14 1 hour, 4 minutes, 14 seconds joining with us today and you may now disconnect your lines.