Sejal Glass Ltd — Q4 FY26

Sejal Glass Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=jMBZq6Sls_Q Published: 1 day ago

0:00 Ladies and gentlemen, good day and welcome to Sageel Glass Limited Q4 and FY26 earnings conference call hosted by Karine Advisors. 0:12 12 seconds As a reminder, all participant lines will be in the listenon mode and there will be an opportunity for you to ask 0:20 20 seconds questions after the presentation concludes. 0:23 23 seconds Should you need assistance during the conference call, please signal an operator by pressing star then zero on 0:30 30 seconds your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. 0:38 38 seconds Par Acharia from Kirin Advisers. Thank you and over to you sir. 0:44 44 seconds Thank you. On behalf of Kin Advisor, I welcome you all to the conference call limited. From the management team, we 0:52 52 seconds have Mr. Mr. Amrud Kara promoter of the company and Mr. Chandra Kambia CFO. With that now hand over the call to Mr. Amrit 1:00 1 minute Kar for the opening remarks. Over to you sir. Yes sir. Uh good afternoon everyone and a very warm welcome to all our 1:08 1 minute, 8 seconds investors, analysts and shareholders joining us today for the Q4 and full year FI26 1:15 1 minute, 15 seconds earning conference call of Sagel Glass Limited. We sincerely appreciate your continued trust and support. At Sedglass, we have spent more than two 1:23 1 minute, 23 seconds decades building a strong foundation as one of the leading manufacturer of highquality architecture glass solutions. Our offering cater to diverse 1:32 1 minute, 32 seconds set of end users industries including residential and commercial real estate infrastructure, industrial applications 1:40 1 minute, 40 seconds and emerging segments such as data centers and high security installations. 1:46 1 minute, 46 seconds With advanced manufacturing facilities in India and UAE, a wide product portfolio and strong customer ecosystem, 1:53 1 minute, 53 seconds we continue to position ourselves as a comprehensive solutions provided in the architectural glass space. FI26 has been 2:01 2 minutes, 1 second a year of strong and consistent growth of SEL class with an improvement across across all key financial parameters 2:08 2 minutes, 8 seconds driven by scale expansion and better operating efficiencies. Starting with the quarterly performance in Q4 FI26, we 2:16 2 minutes, 16 seconds reported a total consolidated income of 116.85 85 cr as compared to 67.90 2:24 2 minutes, 24 seconds cr in Q4 FY26 registering a growth of over 72% yearonear this was driven by healthy 2:32 2 minutes, 32 seconds execution improved tractions in value added product and contribution from recently integrated facilities 2:40 2 minutes, 40 seconds consolidated beta for the quarter's true data 20.47 47 cr with a margin improving to 17.5% from 14.5% last year supported 2:50 2 minutes, 50 seconds by better product mix and operating leverage. Profit after tax on consolidate basis for the quarter came 2:56 2 minutes, 56 seconds at a 11.42 cringing over 200% yearon year with a net profit margin of 89.8%. 3:04 3 minutes, 4 seconds Moving to full year performance for FI26 total consolidated incomes stood at 4001.36 3:12 3 minutes, 12 seconds cr as compared to 244.95 cr in FI26 reflecting a growth of approximately 64% and crossing the 400 3:22 3 minutes, 22 seconds cr milestone. Consolidated beta for the year was 66.32 cr up nearly 88% yearonear with a margin 3:31 3 minutes, 31 seconds improving 16.5 from 14.4. 4%. Profit after tax 2 that debt 29.03 cr on 3:38 3 minutes, 38 seconds console level growing over 160% yearonear with a net net profit margin improving to 7.2% from 4.5%. 3:48 3 minutes, 48 seconds Total comprehensive income for the year stood at 35.94 cr as compared to 9.03 cr of fi25 reflecting a growth of 298%. 3:59 3 minutes, 59 seconds This performance is a reflections of our focus strategy over the last few years. 4:04 4 minutes, 4 seconds Strengthening our core operations, improving a product mix and scaling our value added offering. As highlighted in 4:11 4 minutes, 11 seconds our previous interactions, our efforts towards integrating acquire acquired assets and enhancing utilizations levels 4:18 4 minutes, 18 seconds are now beginning to translate into the financial performance. From an industry standpoint, the demand environment remains highly supportive. The real 4:27 4 minutes, 27 seconds estate sector continue to witness steady momentum particularly in premium and 4:37 4 minutes, 37 seconds mid- income housing commercial leasing especially in office space and data centers remain robust. Additionally, infrastructure investments across 4:45 4 minutes, 45 seconds airports, metro, rail, healthcare and institutional projects continue to drive demand for architecture class solutions. 4:52 4 minutes, 52 seconds A key structural trend that continue to benefit our business is the increasing focus on energy efficiency and sustainable construction. Rising 5:00 5 minutes temperature, higher energy cost and stricter building regulations are accelerated the adoptions of insulated 5:08 5 minutes, 8 seconds and laminated glass solution which align well with our product portfolio. Looking ahead, we remain optimistic about our 5:15 5 minutes, 15 seconds growth. Our key focus area will includes scaling our value and high margin product segments, improving capacity 5:23 5 minutes, 23 seconds utilization across newly integrated facilities, expanding our presence across key geographics in India and GCC 5:30 5 minutes, 30 seconds region and increased footprints in global market as revenue of experts. 5:34 5 minutes, 34 seconds Strengthening relationship with the developers, architect and institutional clients, driving operational efficiency through technology and process 5:41 5 minutes, 41 seconds improvement. We also expect better contribution for our newer product line and acquired facility as they move 5:48 5 minutes, 48 seconds forward optimal utilizations. We should further support both growth and margin expansion in the coming periods. At SEC 5:56 5 minutes, 56 seconds glass, our vision goes beyond manufacturing. We aim to deliver solutions that enhance space within with a combination of safety, performance and 6:04 6 minutes, 4 seconds design excellence with strong industry tailwinds, a robust operational backbone and discipline approach to growth. We 6:11 6 minutes, 11 seconds believe we are well positioned to create a long-term sustainable value for all our stakeholders. On that note, I would like to thank all of you once again for 6:20 6 minutes, 20 seconds joining us today. We will now open to the floor for the questions. Thank you. 6:27 6 minutes, 27 seconds Thank you very much ladies and gentlemen. We will now begin with the question and answer session. Anyone who 6:35 6 minutes, 35 seconds wishes to ask a question may press star and one on their touchstone telephone. 6:41 6 minutes, 41 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use 6:49 6 minutes, 49 seconds handsets while the question queue assembles. 6:53 6 minutes, 53 seconds Ladies and gentlemen, we will wait for a moment while the question Q assembles. Thank you. 7:03 7 minutes, 3 seconds We take the first question from the line of Abi Jen from AJ Capital. Please proceed with your question. 7:11 7 minutes, 11 seconds Hi, good afternoon sir. Hope I'm audible. Yeah, good afternoon. 7:16 7 minutes, 16 seconds Uh sir, I think uh it would be helpful if you just address the bottle uh the the question that probably all the investors would have right now in terms 7:25 7 minutes, 25 seconds of the UAE operations and uh how do you see the future outlook of it? how is one shifting up if you can just give up some 7:32 7 minutes, 32 seconds flavor on how it will shaped up and what are your thoughts on you know how long this uh this disruption can go on and 7:39 7 minutes, 39 seconds whether it affects your top line and your margin growth so yeah yeah particularly on the uh UAE I was 7:49 7 minutes, 49 seconds last year for three days at uh Dubai and visited also plant and customer also so 7:56 7 minutes, 56 seconds apparently uh looking at the situations There is a little bit slowdown in the real estate but uh looking at our 8:04 8 minutes, 4 seconds company uh we have the order book positions which is uh uh at very good right now we are at around uh 60 8:12 8 minutes, 12 seconds millions order book position and uh Q1 like for example last month we have done 8:20 8 minutes, 20 seconds 10.2 2 million turnover and may also I think we will maintain that. So uh if 8:27 8 minutes, 27 seconds the today's situations with a less term uh and uh little bit of improvement on supply chain we are going to close 8:36 8 minutes, 36 seconds around 31 million subject to the situations you know should not uh become more robust. 8:43 8 minutes, 43 seconds So uh that's about the one quarter and we have a uh right now enough book order 8:50 8 minutes, 50 seconds book positions and certain orders are in pipeline. So if the situations you know uh remain um improved and the supply 8:59 8 minutes, 59 seconds chain doesn't uh effect much more I think even Q2 with the little bit of uh improved version we will close by 35 9:08 9 minutes, 8 seconds million. That's what right now we can see the visibility here and uh because of this all UAE 9:16 9 minutes, 16 seconds situations we have also uh uh we have changed little bit of strategy that uh focus area now we are also you know uh 9:25 9 minutes, 25 seconds aggressively working on African market and uh other part of UAE. 9:33 9 minutes, 33 seconds Uh that's right there. So could you give us some more nuance around the margin and uh do you think that the margin will be impacted by this situation and overall just from consolidated level? 9:44 9 minutes, 44 seconds Yeah. Yeah. There will be uh of course the raw material cost has impacted but I think you know we are able to uh 9:52 9 minutes, 52 seconds transport around 80% of the incremental 80 to 90% to the customers. So there will be little bit of you know uh margin 10:02 10 minutes, 2 seconds impact on IBIA maybe you know 1% or 1.5%. 10:05 10 minutes, 5 seconds But that's also a chance but I don't see that you know much more impact in this quarter particularly 10:13 10 minutes, 13 seconds going forward if the situation going worst then there will be impact but as on as on today our operations are stable 10:21 10 minutes, 21 seconds at 10.2 to 10.5 million per month with a reasonable margin. 10:29 10 minutes, 29 seconds So I think uh you know last time you were telling us that you know the VA margin you're targeting around 18% for 10:36 10 minutes, 36 seconds FI27. So probably that would for 27 you'll be able to maintain 10:45 10 minutes, 45 seconds and uh so just some more flavor you know March 36.55 the total level and uh I think this year 10:55 10 minutes, 55 seconds you know some value added product like fire product will also start in Q2 or uh beginning of Q3 and certain other value 11:04 11 minutes, 4 seconds added product also getting in the market gradually. 11:08 11 minutes, 8 seconds So I think we will maintain around 18% uh or 17.5 to 18% I betita 11:16 11 minutes, 16 seconds and also the facade business we have there that there is also a good order book position so maybe this will impact at a consolidated 1%. 11:26 11 minutes, 26 seconds Right. So can you also uh find these last question give us some flavor around what makes special uh I mean the hyroc 11:34 11 minutes, 34 seconds you know the vending uh can you give us some idea about who your customers are and if there are some 11:42 11 minutes, 42 seconds multi client and uh it's a B2B and B2C so the developers are the our clients 11:51 11 minutes, 51 seconds but uh the installations contractors are the fabricator who buy from much but 11:58 11 minutes, 58 seconds there is a you know influence or the um in decisions of the product architect and developers play a vital role. 12:09 12 minutes, 9 seconds Mhm. 12:11 12 minutes, 11 seconds Okay. And uh how do you see the next two three years unfolding for you? I mean you are in a high growth phase obviously 12:17 12 minutes, 17 seconds but uh how do you see FI29 or FI30 where do you see yourself at and if you can just give us some understanding of what your plans are for the medium term. 12:26 12 minutes, 26 seconds Okay. next two to three years I will first tell about FI27 if the things are you know uh in a moderate situations uh in line with the 12:35 12 minutes, 35 seconds growth of India story and little bit uh you know the disturbance of UAE I think we will you know minimum we will uh 12:43 12 minutes, 43 seconds improve by 25% uh growth and things are better in UAE then we are going to cross 12:50 12 minutes, 50 seconds 40% uh uh improvement from last uh this FI26 number one and there will be a little 12:57 12 minutes, 57 seconds bit of improvement around 1.5 to 2% 1 to 1.5% in ITA and secondly we are also you 13:05 13 minutes, 5 seconds know uh planning to expand in India because uh right now over 70% of the revenue is coming from UAE that also we 13:13 13 minutes, 13 seconds want to you know do some um balancing as India is also growing so this year I think it will be 6040 and thereafter it 13:22 13 minutes, 22 seconds will be 50/50 so India capacity uh this last Yes, our two expansion and acquisition will have a capacity 13:29 13 minutes, 29 seconds utilizations and we are also you know working on um opportunity of acquisition in India. So 13:39 13 minutes, 39 seconds going down after uh 2 to 3 years I think we will be in a very better position number one. Number two, we will be the 13:47 13 minutes, 47 seconds largest by capacity in India and largest by the market share and uh with a very 13:53 13 minutes, 53 seconds good operating ea and the plate that is a new product also product 14:00 14 minutes portfolio going new geographies export market you started European 14:07 14 minutes, 7 seconds market from India we got the order in this quarter that's that's one sir that's some 14:15 14 minutes, 15 seconds bullish comment country. I'm sure all the investors will be happy looking at your positive outlook and given all the disruption you're still so blessed. So, 14:22 14 minutes, 22 seconds so that's wonderful and all the best and yeah, we'll be on a journey with you. Thank you. Thank you. 14:32 14 minutes, 32 seconds Thank you. We take the next question from the line of Rohit Fahwani from Vij Global Security. Please proceed sir. 14:41 14 minutes, 41 seconds Yes. Thank you so much for giving me the opportunity. First of all, I would like to congratulate the management for giving such good performance in Q4. My 14:50 14 minutes, 50 seconds first question is related to the new verticles which management mentioned also in the earlier commentary. If you 14:56 14 minutes, 56 seconds could give just timelines related to you know different verticals you mentioned fire safety glass there was bulletproof 15:05 15 minutes, 5 seconds glass also earlier the company's also working in you know railway segments. So if you could provide us the timelines as to when can we expect the revenues to 15:13 15 minutes, 13 seconds start coming in from these verticles and how much as a percentage these can contribute to the total you know 15:21 15 minutes, 21 seconds consolidated revenue in this year. The railway already we have started little bit uh we are now you know started 15:29 15 minutes, 29 seconds filling the tenders. So there is a level one level two. So uh one or two order we got and uh we are bidding for wand 15:37 15 minutes, 37 seconds bharat also and uh AC coaches also. So railway has been started but uh generally looking at the consolidator 15:44 15 minutes, 44 seconds there will be around 2 to 3% of total revenue from the railway 2 to 3%. Second fire product, fire 15:54 15 minutes, 54 seconds technology we have uh signed from the uh Spain that product will go in the market 16:01 16 minutes, 1 second in Q3 product and uh certain uh this standard 16:09 16 minutes, 9 seconds product which we are working that also in the trial of the production that also will go in the market in Q3 that uh 16:17 16 minutes, 17 seconds standard this uh digital productions uh decorative that also will go in. But uh you know 16:26 16 minutes, 26 seconds apparently this all new product will contribute around 5 to 7% this year. Not much. 16:36 16 minutes, 36 seconds Okay. Okay. And any outlook for next year? Can this go to let's say 15? Next year it will go to 15 to 20%. 16:45 16 minutes, 45 seconds Okay. Okay. That's great. That's great. 16:48 16 minutes, 48 seconds My second question is related to the capacity utilization in India units. So if you could provide us the capacity 16:56 16 minutes, 56 seconds utilization separately for glass tech as well as for single glass uh existing units. What is the utilization and at 17:05 17 minutes, 5 seconds what level do you expect this year to end? 17:10 17 minutes, 10 seconds So capacity ination in Silvasa unit per se it is uh the tempering capacity utilization is around 64%. 17:20 17 minutes, 20 seconds Our IG is 30% and lamination is 87%. 17:24 17 minutes, 24 seconds Whereas on the plastic units like is around at 33% and tempering IG is around 21% and lamination is around 8%. 17:34 17 minutes, 34 seconds For erode uh the unit tempering is around at 13% and the IG is at 3%. 17:45 17 minutes, 45 seconds And closing targets at what rate can we expect this year to be closed in Silvas mode? 17:54 17 minutes, 54 seconds This year Silvasa the tempering capacity more or less it will be in the range of 75%. 18:00 18 minutes IG we are expecting more than 50% this year. Lamination we are expecting 90 to 95%. 18:09 18 minutes, 9 seconds And talog and growth together we are expecting that tempering should go more than 50% and uh IG and laminate uh will contribute around 30%. 18:20 18 minutes, 20 seconds Okay. Okay. And uh have we reached a big break even in glass tech yet or uh it is 18:28 18 minutes, 28 seconds still up in the last month I think we are at this break even. 18:37 18 minutes, 37 seconds Okay. Okay. And uh are you expecting this year last year to become profitable 18:44 18 minutes, 44 seconds and if yes then what can be the margins for this year? 18:52 18 minutes, 52 seconds this this quarter we are expecting at least 10% a beta positive okay okay that helps thank you so much 19:00 19 minutes sir I will join back the queue yes thank you the next question is from the 19:07 19 minutes, 7 seconds line of siil and indest please go ahead hello thank you for the opportunity 19:16 19 minutes, 16 seconds um uh I just want to ask a particular Tell me about the UA operation. I think uh the 19:23 19 minutes, 23 seconds previous candidate has also asked you about the uh UA um sales and 19:30 19 minutes, 30 seconds profitability. But my main concern is that uh when we are seeing the data uh pertaining to specifically to UAE 19:38 19 minutes, 38 seconds business. So are the payments and everything is on time or uh these datas how we are securing these datas because 19:46 19 minutes, 46 seconds we have seen that in UA uh people are asking deferrals and uh uh you can say 19:53 19 minutes, 53 seconds extended time period for payments. So can you highlight uh from the data point that uh how much data in the book 20:01 20 minutes, 1 second pertaining to UA or is there any write off or any deluency you have seen in the books? No, so as of now uh we are not 20:09 20 minutes, 9 seconds facing such issues because our all the payments are coming on the due dates as of now. So uh till now no one has 20:17 20 minutes, 17 seconds extended their uh due uh deadlines. I mean the due dates whatever that due date checks or the PDCs has been given 20:24 20 minutes, 24 seconds are being honored as of now because our list is accordingly all our 20:31 20 minutes, 31 seconds uh the well-known uh facade companies or the developers with whom we are working. 20:37 20 minutes, 37 seconds So there is zero backs and zero delay inside and that's what we are expecting continue even in the the finale also. 20:50 20 minutes, 50 seconds Okay. Okay. That's great. And uh as you have highlighted in the guidance that uh in the current year we are expecting 25% 20:58 20 minutes, 58 seconds growth. So that means we are uh targeting 500 odd growth of correct. So 21:05 21 minutes, 5 seconds and the mix will be 60 40. So that means uh we are not predicting any meaningful growth in UAE and I think uh the main 21:14 21 minutes, 14 seconds focus will be on India uh growth. Maybe uh we are doubling the uh top level. Uh is that uh correct? 21:23 21 minutes, 23 seconds So uh UE growth will be there compared to last year. Yes, there will be a growth of around 20 20%. Considering the 21:32 21 minutes, 32 seconds situation remain moderate the C7 situation whatever is there and there is a improvement in the situation what we 21:39 21 minutes, 39 seconds are expecting and uh we had already uh considering some expansions in UAE where we had 21:46 21 minutes, 46 seconds already ordered some machine which are yet to be installed because of this geopolitical it was delayed by one quarter so we're expecting that the Q2 21:56 21 minutes, 56 seconds or Q3 we will be uh uh installing this machines then it will start producing 22:04 22 minutes, 4 seconds and apart from that also targeting some uh geog geographical uh change over in 22:11 22 minutes, 11 seconds the U market also that considering the other countries from 22:19 22 minutes, 19 seconds okay and uh I have saw your interview on um R TV I think you have highlighted that you guys are also planning for uh 22:28 22 minutes, 28 seconds second acquisition which is under due diligence. So what is the current status of that? Where we are we? 22:37 22 minutes, 37 seconds No, it is still under the process. So it will take some time. 22:44 22 minutes, 44 seconds Okay. And uh what is the current uh debt outstanding in the book and how we are planning to uh reduce in the uh coming 22:53 22 minutes, 53 seconds future because I believe this year we have generated a very good cash flow from from operation. So uh what is the debt reduction planning in near future? 23:04 23 minutes, 4 seconds The debt reduction already been considered in the last quarter in the quarter three as such we had repaid some 23:12 23 minutes, 12 seconds of the promoter outstanding loans uh from Selas India and now as of now the consolidated debt is around 138 cr. So 23:21 23 minutes, 21 seconds in this the uh majority is uh from the banker's term loan which are which are going on as per the scheduled payments 23:30 23 minutes, 30 seconds and around 60 uh 70 cr is again uh funded uh toward 23:40 23 minutes, 40 seconds okay because I think uh there is some uh 75% outstanding amount which we have to 23:46 23 minutes, 46 seconds call on equity warrants correct uh I think for for equity So how is there any time how we going to be utilizing that money? 23:57 23 minutes, 57 seconds So that as of now we are see that call is within 18 months. So definitely the 24:04 24 minutes, 4 seconds plans or the acquisitions what we are thinking of it will be structured in that. 24:13 24 minutes, 13 seconds Okay. Okay. So for UA new machine uh are we planning to take more debt for uh 24:20 24 minutes, 20 seconds funding of that machine or from internal approval we have secure that machine? 24:25 24 minutes, 25 seconds It will be mix of internal and some debt term debt will be there some local banks or 24:32 24 minutes, 32 seconds UA banks we had already paid some advances which was through the internal approvals. 24:41 24 minutes, 41 seconds Okay. Okay. Fine. Thank you. 24:47 24 minutes, 47 seconds Thank you. We take the next question from the line of Ronit Kapoor from Invest Investments. Please proceed. 24:55 24 minutes, 55 seconds Yeah. Uh hi. Am I audible? Yes. Yes. Go ahead. 24:59 24 minutes, 59 seconds Yeah. Hi. Uh so first of all congratulations on a great set of numbers. So my question is particularly regarding your India business. So I look 25:08 25 minutes, 8 seconds at the standalone numbers uh along with uh glass performer numbers. I think last 25:15 25 minutes, 15 seconds year you all did around 126 crores if glass was included like you'll acquire in April 25 but after including that so 25:22 25 minutes, 22 seconds there's a degrowth in India numbers if I include the glass tech particularly why last without glass uh we did only 63 cr. 25:33 25 minutes, 33 seconds Yeah. So if if include perform glass because you had done 63 crores in Glasttech also before acquisition glass was doing 63 crores right? 25:42 25 minutes, 42 seconds No it was not there because Gl came only in the May and June. 25:47 25 minutes, 47 seconds Well I agree it came in May but I'm saying before acquisition also it was generating a turnover right for the previous company. So I'm saying both of 25:55 25 minutes, 55 seconds them combined like seen as big agree yes agreed. So why is that so like? 26:03 26 minutes, 3 seconds No because after taking over there were certain uh consolidations and re-engineering was required to be done 26:10 26 minutes, 10 seconds because their system was different. Uh the another thing is that that 63 was included some trading part also which 26:19 26 minutes, 19 seconds they had internally was doing. And apart from that the uh there were some uh machines which were required to be 26:28 26 minutes, 28 seconds overhauling and uh re-engineering to meet the required capacity utilization 26:34 26 minutes, 34 seconds and some uh labor uh related uh uh things were also required to be kept in 26:42 26 minutes, 42 seconds place. So all this has taken some two quarters actually and we have started operation 26:49 26 minutes, 49 seconds uh in Taloa only from the June and that was only 9 months or 10 months and we 26:57 26 minutes, 57 seconds started from July only. So 9 months only. 27:00 27 minutes So what is the turnover of glass tech individually like for this year? 27:12 27 minutes, 12 seconds Yeah. Hello. Hello. The line for the management has got disconnected. Please remain connected while we connect the management practical account. 27:48 27 minutes, 48 seconds Green. 28:05 28 minutes, 5 seconds Let's go. 28:18 28 minutes, 18 seconds Ladies and gentlemen, we got the line for the management reconnected. So, please proceed. 28:23 28 minutes, 23 seconds Yeah. Uh, so what is the turnover for Glass Tech individually for FI26? Crowns around 40 crores. 28:31 28 minutes, 31 seconds 40 crores. And in the what is the outlook for the India business for FR27 combined like how much do you want 28:38 28 minutes, 38 seconds 27 uh C uh we are considering total overall 500 cr plus in that 40% will be 28:45 28 minutes, 45 seconds India 200 and last tax should be above 100 like 100 plus okay and uh 28:53 28 minutes, 53 seconds 110 what we are expecting to okay and last question is regarding uh your margins the India business uh like 29:01 29 minutes, 1 second are not are not picking up despite last two years. So is it the competition from the unorgloized space or what is the main reason like for that? No, the first 29:11 29 minutes, 11 seconds is that uh this year because the uh glass tech units has given a negative 29:17 29 minutes, 17 seconds margin so that has impacted otherwise India we are expecting 15%a 29:26 29 minutes, 26 seconds so you see only silasa plant it is giving more than 17 to 18%a margin because that is an established 29:34 29 minutes, 34 seconds plant now only thing is that we are working more on the product mix uh The shift is from the only plain tempered 29:42 29 minutes, 42 seconds glass to a laminated glass and the the IG glass and apart from that the still we are working on the digital printed or 29:49 29 minutes, 49 seconds the other value added glass which will improve further margins. 29:54 29 minutes, 54 seconds Okay. And uh how's the floor glass pricing like uh the recent low material price hike? How's it increasing as such 30:02 30 minutes, 2 seconds like last two months? See last two months there is an increase around 8% uh in the glass prices because of this uh 30:09 30 minutes, 9 seconds energy cost or the gas cost has been increased. So they had uh added the energy searches further. So 7 to 8% uh 30:19 30 minutes, 19 seconds in the glass price increase but apart from that we are uh already in the new projects whatever where the quotations are going it has been captured in that. 30:28 30 minutes, 28 seconds So whatever the glass price change, it will be passed on to the uh customers. 30:35 30 minutes, 35 seconds Okay. Thank you. Uh that's it from my side. All the best. Thank you. 30:41 30 minutes, 41 seconds Thank you. Before before we take the next question, a reminder to all the participants, anyone who wishes to join 30:48 30 minutes, 48 seconds the question queue may press star and one on their touchstone telephone. 30:55 30 minutes, 55 seconds We take the next question from the line of Rajna Kukraa from SMIPL. Please please proceed. Uh 31:02 31 minutes, 2 seconds thanks for the opportunity. I have two questions. My first question is on the gross profit margin. If we look for Q4 31:10 31 minutes, 10 seconds and the entire SI 26 for standalone business the gross margin has not improved so much. It has remained 31:18 31 minutes, 18 seconds stable. But if for the consolidated business the gross margin has improved quite a bit. So if you could provide 31:25 31 minutes, 25 seconds some color on gross margins for both standalone business and the consolidated business. 31:32 31 minutes, 32 seconds So gross margin you mean uh sales minus COGS. Yes. 31:38 31 minutes, 38 seconds So that it depends on the product mix what it is actually. So generally 63% 64% is our uh uh COGS cost. So around 33 31:48 31 minutes, 48 seconds to 34% is our gross margin. Yes. 31:53 31 minutes, 53 seconds So I wanted to know the reasons for improvement and consolidated business and consolidation business improves because 32:01 32 minutes, 1 second in UEIE the uh majority business is of IG and lemonade. There is no plain tempered sales. So where the margins are 32:09 32 minutes, 9 seconds little bit more because in India the mix the the sale mix includes the temper sale also. So 60% business still in the 32:17 32 minutes, 17 seconds India business is tempered plain tempered business where the COGS will be little bit higher. So overall COGS in a consolidated it will be better. 32:30 32 minutes, 30 seconds Okay. So in India there is no uh way of improving the gross margin. 32:36 32 minutes, 36 seconds It is there. So see when the product mix change the gross margin will definitely change because my COGS will come down. 32:44 32 minutes, 44 seconds So I mean to say is there you know high competition for the India business given that you know the No it is not about the competition it is 32:52 32 minutes, 52 seconds about the end user segment. So the there the slowly the segment is changing from 32:59 32 minutes, 59 seconds plain tempered to a IG glass or lamination glass as per the safety rules and the change in the building uh engineering and the architect's demand. 33:11 33 minutes, 11 seconds So the specifiers are now specifying that the high-end products to be used like uh laminated glass for railing and 33:20 33 minutes, 20 seconds the uh which are tempered and the uh on the uh skyrise buildings has to be used 33:27 33 minutes, 27 seconds uh laminated or and the IG glass. So that shift will uh come over a period of 33:34 33 minutes, 34 seconds time and the going ahead will definitely improve the CAGS it will come down to 61%. So that mean 33:43 33 minutes, 43 seconds 39% or the 40% margin will come as in gross margin and apart from that as our product mix includes our uh digital 33:52 33 minutes, 52 seconds printed glass also wherever possible and as we are working on the fire rated and the bullet uh resistant glass. So that 34:00 34 minutes contributions is also overall gross margin margin business. 34:05 34 minutes, 5 seconds Uh second question was in India business you know we were had plans to uh diversify apart from the real estate 34:13 34 minutes, 13 seconds sector to nonm sectors. Uh so how has that gained traction over the years and if we compare the margins between the 34:22 34 minutes, 22 seconds end sectors how are the margins in nonreal estate business for us? 34:28 34 minutes, 28 seconds So non-real estate business as of now u we are not uh having that much contribution in our total revenue but uh 34:38 34 minutes, 38 seconds definitely that non OEM also gives a good margin so COGS will be better compared to this uh architectural uh in 34:48 34 minutes, 48 seconds the construction industry and if you could give some color on the grass uh business uh gross margins is it 34:57 34 minutes, 57 seconds in the same design as a corporate consolidated business or much higher. 35:03 35 minutes, 3 seconds No, it is on a COGS front. It is yes, gross margins are similar to what we are in. 35:12 35 minutes, 12 seconds And uh one last question uh you mentioned about you know passing on around 70 to 80% of the uh raw material 35:20 35 minutes, 20 seconds cost to the custom end customer. Uh so in the domestic business also we have done the same thing or is it more of for the UAE business? 35:29 35 minutes, 29 seconds No no both both our total products are uh it is uh make 35:36 35 minutes, 36 seconds to order kind of uh product what we are into. So definitely whatever the our cost of the glass is being pass on to the customers. 35:47 35 minutes, 47 seconds Okay. Thank you. 35:52 35 minutes, 52 seconds Thank you. We take the next question from the line of Pavan from Vanch Ventures. Please proceed. 36:03 36 minutes, 3 seconds Mr. Pavan, you're live in the talk mode, sir. Please proceed with your question. 36:07 36 minutes, 7 seconds Yeah, I just wanted to know with respect to same co collaboration that we have, what are the benefits that we get? 36:15 36 minutes, 15 seconds Because if the prices are being totally passed on to us, is there any benefit in terms of pricing that we get a little bit cheaper versus what others would 36:23 36 minutes, 23 seconds source otherwise? Yes. So generally it is always uh the prices are always linked to the projects. So wherever the 36:31 36 minutes, 31 seconds uh seno glass are specified in some of the projects and that order has been uh given to us, we can renegotiate the pricing on that front. 36:42 36 minutes, 42 seconds So which is not there in of the other suppliers or the other and uh apart from that we get a special 36:50 36 minutes, 50 seconds sizes also sometimes so where we can reduce our wastage percentage. So that also helps and apart from that the other 36:59 36 minutes, 59 seconds benefit is that they have their pen India sales team where they are specifying their glass in some of the 37:05 37 minutes, 5 seconds projects. So with this collaboration we also get into such a negotiation at the stage of the finalizing the order. So in 37:15 37 minutes, 15 seconds a way they work for us for marketing our products also but the benefit is more marketing link. 37:22 37 minutes, 22 seconds Do you get a cheaper rate versus what cooking would be probably giving some other clear in India? 37:27 37 minutes, 27 seconds Yes. Yes definitely you get the price advantage. 37:30 37 minutes, 30 seconds Price advantage is there size advantage is there and the order confirmation you get. And what would be the price advantage? Would you be able to sort of 37:38 37 minutes, 38 seconds give us some quantification just to know the gravity of the price advantage that we get? 37:43 37 minutes, 43 seconds Always depends on the project to project. So generally we get the crate note when the order is finalized the 37:50 37 minutes, 50 seconds material is lifted around four to 5% uh the uh pricing notes are given. 37:57 37 minutes, 57 seconds Understood sir. Thanks a lot. That's all from my side. Thank you. 38:02 38 minutes, 2 seconds Thank you. The next question is from the line of the Panchu Suman from Satwa Ventures. Please proceed. 38:10 38 minutes, 10 seconds Hello sir, uh congratulations for a very nice result. I just wanted to say double 38:16 38 minutes, 16 seconds check uh on this uh ST under Dubai business uh we are expecting about say 38:23 38 minutes, 23 seconds 31 million in this in this particular quarter. So are we saying that we are going to get some sort of flattening 38:30 38 minutes, 30 seconds kind of revenue in the current quarter compared to quarter 4? Uh sorry what kind of revenue? 38:38 38 minutes, 38 seconds So is it going to be flat compared to the fourth quarter? 38:43 38 minutes, 43 seconds It will be in the same range of fourth quarter. 38:46 38 minutes, 46 seconds Okay. And in in India business what kind of growth are we expecting on a quarter one quarter? Because we are ramping up the new plants uh acquired plants. 38:56 38 minutes, 56 seconds So this quarter we are expecting around 20% growth in India business. 39:02 39 minutes, 2 seconds Okay. So the India business should keep on growing every quarter right because like it's at a very low kind of 39:10 39 minutes, 10 seconds utilization. So so what is our plan wise? Can you give the number? What kind of numbers are we aspiring for the full year? 39:18 39 minutes, 18 seconds As we said that we are expecting around 200 crores from India over a year 26 27 39:26 39 minutes, 26 seconds and out of that 125 should come from the acquired entity and last tech 110 somewhere and 90 cr from the existing silasa unit. 39:38 39 minutes, 38 seconds Okay 110 and 90. Thank you sir. Thank you that was thank you. We take the next question 39:46 39 minutes, 46 seconds from the line of Rohit Bahirwani from Widget Global Securities. Please go ahead with your question. 39:52 39 minutes, 52 seconds Yes, thanks again. The company is not paying any taxes on the India operations currently. Just wanted to confirm uh are 40:00 40 minutes you required to pay any taxes in India for the next two years? No, there is no tax outgo as of now. 40:07 40 minutes, 7 seconds And for next year, is there any liability which you are expecting? 40:13 40 minutes, 13 seconds No, there is no liability for next year also. 40:17 40 minutes, 17 seconds Okay. Okay. Thank you so much and all the very best you. 40:24 40 minutes, 24 seconds Thank you. Last question. 40:28 40 minutes, 28 seconds Ladies and gentlemen, as there are no further questions, I would now like to hand the conference over to Mr. Par Acharia from Korean Advisors for closing comments. 40:39 40 minutes, 39 seconds Thank you everyone for joining the conference call of Sanger Glass Limited. 40:43 40 minutes, 43 seconds If you have any further queries, you can write us at research aspirinadvisor.com. 40:49 40 minutes, 49 seconds Once again, thank you for joining the conference. Thank you. 40:57 40 minutes, 57 seconds Thank you on behalf of Kina Advisers. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.