Sheela Foam Limited — Q4 FY26

Sheela Foam Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=22X_yEJS3X0 Published: 1d ago

0:00 Ladies and gentlemen, good day and welcome to Sheila Home Q4 FYI26 earnings conference call hosted by Investic Capital Services India private. 0:10 10 seconds As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you questions after the presentation concludes. 0:20 20 seconds Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. 0:29 29 seconds I now hand the conference over to Mr. 0:31 31 seconds Ritesh Sha, co-head of research analyst, bit midcaps, materials and ESG from invested capital services India private limited. Thank you and over to you sir. 0:42 42 seconds Uh thank you Shelendra. Uh thank you all for joining on to Shila from Q4 FI26 and FI26 conference call. Uh we have with us 0:51 51 seconds Rahul Gji chairman and managing director. Uh we have with us Rakkeshi deputy MD and Amiji group CFO. I would 0:59 59 seconds request Rahu gi to start uh the call with initial remarks post which we'll have a Q&A session. Over to you sir. Thank you so much. 1:20 1 minute, 20 seconds Please go ahead sir. Open. Yeah. Hi. 1:23 1 minute, 23 seconds Yeah. Uh you can open the lines for the management. Rahul G will have to start with the comments please. Yeah, the line is open. Thank you. Yeah. 1:39 1 minute, 39 seconds Uh sir, we unable to hear. Ladies and gentlemen, please be online. 2:20 2 minutes, 20 seconds participant. The management client is back. Over to you, sir. Hello, Rahul G. G. 2:29 2 minutes, 29 seconds Yeah. Hi. Hi, sir. I think you got disconnected. Uh, I would request you to start the call with initial comments post which we'll have a Q&A session, sir. Over to you, sir. Thank you. 2:44 2 minutes, 44 seconds Good afternoon ladies and gentlemen. At the outset, let me thank you all for attending this conference call to 2:51 2 minutes, 51 seconds discuss our operational and financial results for quarter 4 and the financial year ended March 2026. 3:00 3 minutes I do hope you've gone through the results and the earnings which have been uploaded on the website. 3:09 3 minutes, 9 seconds FI26 has been a year of implementation of the benefits of the Kuron acquisition and its integration with Chilafoam. 3:19 3 minutes, 19 seconds Both Sleeper and Kuron brands delivered strong growth and our foam segments also recorded commendable momentum. 3:29 3 minutes, 29 seconds The broad-based performance has translated into a healthy growth across both revenue and profitability. I am 3:37 3 minutes, 37 seconds pleased to share that the company achieved several milestones in FY26 including 3:45 3 minutes, 45 seconds highest ever annual form production, highest ever topline and the highest ever evict. 3:54 3 minutes, 54 seconds This reflects the strength of our integrated platform focused on execution 4:01 4 minutes, 1 second and a continued commitment to a profitable growth. 4:06 4 minutes, 6 seconds We're also cautious and remain watchful of the evolving situation in the Middle East and its potential implications for 4:13 4 minutes, 13 seconds raw material availability and the supply chains. The company till now was able to navigate this environment without any 4:22 4 minutes, 22 seconds material disruption and I hope that we continue to do that. Our longstanding supplier relationships both in domestic 4:30 4 minutes, 30 seconds and international markets ensured continued availability of key raw materials such as polyol and TDI. 4:39 4 minutes, 39 seconds This ensured that the customer servicing without disruption and also increased 4:46 4 minutes, 46 seconds the top line in quarter 4. This reflects the resilience of our sourcing network and the strength of our supply chains relationship. 4:55 4 minutes, 55 seconds For Q4 of last year, our Indian operations which are now our standalone business demonstrated a revenue growth of 24%. 5:08 5 minutes, 8 seconds For a full year FY26 the growth was 11%. 5:13 5 minutes, 13 seconds The volume growth for full year was around 15%. 5:17 5 minutes, 17 seconds This should also further show positive movement as selling prices 5:23 5 minutes, 23 seconds are bound to be higher in FY27 as compared to FY26 and we are all aware that the higher raw 5:32 5 minutes, 32 seconds material prices will be contributing to that. The core IITra margins for Q4 climbed to 11.5%. 5:42 5 minutes, 42 seconds For full year of last fiscal, the core riveta margin stood at 10.7%. 5:48 5 minutes, 48 seconds This indicates that we are already in a 11 to 12% bracket and should move further onwards with 5:57 5 minutes, 57 seconds growth. The kuron acquisition has moved beyond integration and is now visibly 6:04 6 minutes, 4 seconds contributing to the group's operating performance. Our segments have also shown healthy growth during the year. 6:13 6 minutes, 13 seconds Mattress volumes grew by 13% yearonear in quarter 4 FI26 and by 12% for the 6:21 6 minutes, 21 seconds full year. Value growth in the mattress segment was 13% in Q4 and 10% for FI26. 6:29 6 minutes, 29 seconds Growth during the year was well distributed across both Sleeper and Kern supported by deep deeper distribution, 6:37 6 minutes, 37 seconds sustained brand investments, sharper channel execution and the benefits of a more integrated platform 6:46 6 minutes, 46 seconds operating platform. On the retail side, we added approximately 600 net new showrooms during FI26. 6:57 6 minutes, 57 seconds This further further strengthens our market reach. Third showroom expansion particularly in northern India continue 7:06 7 minutes, 6 seconds to gain encouraging traction. Alongside this, we also continue to develop adjacent home comfort categories 7:14 7 minutes, 14 seconds including pillows as part of our broader effort to deepen consumer engagement across the comfort portfolio. Our 7:23 7 minutes, 23 seconds e-commerce business also continued to scale strongly during FY26. 7:30 7 minutes, 30 seconds Sales on our own websites which we call as Brand.com grew by 136% yearonear and 7:37 7 minutes, 37 seconds sales on platforms grew by 39% yearonear. This performance has been driven by a focused digital strategy, 7:47 7 minutes, 47 seconds targeted consumer marketing, a sharper online portfolio, and better alignment 7:54 7 minutes, 54 seconds between product pricing and fulfillment capabilities. 7:58 7 minutes, 58 seconds The My Matters proposition and our online le consumer initiatives have 8:05 8 minutes, 5 seconds helped strengthen our direct engagement with consumers. Our unorganized to organized business which we earlier used 8:14 8 minutes, 14 seconds to refer as STI or small town India a small town India initiative business now 8:20 8 minutes, 20 seconds operates through 8,400 dealers and reaches over 5,000 towns across 24 8:28 8 minutes, 28 seconds states. In FY26, this U2O business delivered volume 8:34 8 minutes, 34 seconds growth of 65% and value growth of 111% on a year-on-year basis. This growth has 8:41 8 minutes, 41 seconds been supported by continued product innovation and by strengthening deeper distribution reach in the markets. In 8:50 8 minutes, 50 seconds firm business for Q4 FI26, volumes grew by 34% while value grew growth was 36% 9:00 9 minutes aided by better price realizations. For the full year of last fiscal, volume growth was at 18% while value growth stood at 14%. 9:11 9 minutes, 11 seconds This growth was supported by a broader customer pipeline, disciplined market 9:18 9 minutes, 18 seconds development and a continued focus on higher value applications. 9:24 9 minutes, 24 seconds Overall, our India business delivered a strong FY26 performance driven by the strength of our brands, expanded 9:32 9 minutes, 32 seconds distribution reach, sharper channel execution and sustained operating discipline. The year also demonstrates 9:42 9 minutes, 42 seconds that growth and profitability can move together when the business is integrated well and execution remains consistent. 9:52 9 minutes, 52 seconds I'm also pleased to share that the board has recommended a dividend of 20% for FY26 subject to approval of shareholders. 10:03 10 minutes, 3 seconds This a significant milestone for the company as the profitability of the business has enhanced after successful 10:11 10 minutes, 11 seconds integration of kernel and with significant reduction of debt levels. 10:16 10 minutes, 16 seconds The group has strengthened its cash generation profile enabling it to share profits with shareholders. This marks 10:24 10 minutes, 24 seconds the first dividend recommended by the company since listing or for that matter forever. This is the 10:31 10 minutes, 31 seconds first time the uh dividend is being recommended. Both Australia and Spain have delivered stellar operating 10:39 10 minutes, 39 seconds performance dur during the year. In Australia, Joyce revenue stood at 422 10:45 10 minutes, 45 seconds crores in FY26 and EBITA margins improved to 10%. 10:51 10 minutes, 51 seconds Here, which is a significant improvement of almost 400 bips over FI25. 10:58 10 minutes, 58 seconds The improvement in profitability profile was due to implementation of strategic yield improvement programs, 11:05 11 minutes, 5 seconds renegotiating prices with key customers and supply chain restructuring institutes institutionalized in last year. 11:16 11 minutes, 16 seconds In Spain, revenue stood at 391 crores in FY26 and IITA margin of 10.4% 11:25 11 minutes, 25 seconds for the full year as compared to 8.4% 4% in FY20. So as we clearly see in both 11:31 11 minutes, 31 seconds Australia and Spain the IITA margins have increased on Furleno. I'm happy to 11:38 11 minutes, 38 seconds share that business is expanding and is well poised on its growth journey for FY26. 11:45 11 minutes, 45 seconds Ferleno reported a revenue of 370 crores a growth of over 60% yearonear. The 11:55 11 minutes, 55 seconds company clocked a path of close to 60 crores compared to 3 crores in FY25 12:02 12 minutes, 2 seconds thereby marking significant improvement in its performance. Fereno has been able 12:09 12 minutes, 9 seconds to achieve this growth while maintaining the stringent cost discipline and fiscal prudence. As I had spoken in our last 12:18 12 minutes, 18 seconds call about integrating Ferleno and Sheila's omni channel network and established for Lango's presence across 12:27 12 minutes, 27 seconds Sleeper and Pearlon stores. I'm happy to share that we have been we have encouraging response from customers 12:36 12 minutes, 36 seconds visiting our 40 plus integrated stores wherein they are able to get offerings from both Furleno and Silafo. 12:46 12 minutes, 46 seconds We are constantly increasing such integrated source and hope to cross 100 stores during current year. 12:54 12 minutes, 54 seconds Next, our IT business stack has also continued to evolve as a differentiated 13:02 13 minutes, 2 seconds digital capability within the group with its solutions now supporting enterprise workflows workflows analytics and 13:12 13 minutes, 12 seconds technology-led decision making across sectors. 13:17 13 minutes, 17 seconds During FY26, Staco delivered a revenue of 70 crores. 13:22 13 minutes, 22 seconds We see Straco not merely as a technology subsidiary but as a strategic digital 13:29 13 minutes, 29 seconds asset that strengthens the group's broader capabilities in automation, data 13:36 13 minutes, 36 seconds intelligence, enterprise efficiency and artificial intelligence. 13:42 13 minutes, 42 seconds Coming to ESC, our focus remains on embedding sustainably sustainability 13:51 13 minutes, 51 seconds into the way we operate rather than treating it as a separate initiative. 13:57 13 minutes, 57 seconds During FY26, we made steady progress across our identified priorities 14:05 14 minutes, 5 seconds such with priorities with continued emphasis on energy efficiency, responsible resource management, waste 14:14 14 minutes, 14 seconds reduction, workplace inclusion, and of course fire safety. 14:20 14 minutes, 20 seconds We have already operationalized a 500 kilowatt solar power plant at our 14:27 14 minutes, 27 seconds Javalur facility and are progressing with over 1,000 kilow of additional solar capacity across other manufacturing locations. 14:38 14 minutes, 38 seconds We're also able to augment gender diversity in our workforce to 14:44 14 minutes, 44 seconds around 8% during the year. These actions reflect our commitment to building a more responsible, inclusive, and 14:53 14 minutes, 53 seconds efficient operating platform. Our responsibility extends beyond business performance to the communities we serve 15:02 15 minutes, 2 seconds and the lives we are able to touch. Our CSR agenda continues to be anchored around two key areas where we believe we 15:12 15 minutes, 12 seconds can create meaningful and a lasting impact. 15:16 15 minutes, 16 seconds Emotional wellness and skill development through our emotional wellness initiatives. We are able to touch 15:26 15 minutes, 26 seconds hundreds and thousands of lives across the country thereby helping build wider 15:33 15 minutes, 33 seconds awareness and a sustained national conversation around preventive emotional well-being in skill development. Our 15:42 15 minutes, 42 seconds programs across armed force s preparation, fashion designing, paramedical training and software 15:49 15 minutes, 49 seconds development are focused on equipping young men and women with livelihood linked capabilities. 15:58 15 minutes, 58 seconds These initiatives reflect our belief that true value creation is measured by the positive and enduring impact that can be created on the society around us. 16:12 16 minutes, 12 seconds With this I will now request our group CFO Mr. Amit Kumar Gupta to take you through our financial violation. Over to you. 16:21 16 minutes, 21 seconds Thank you sir. Uh thank you for your inputs on our business and strategy going forward. Uh just to update on the 16:29 16 minutes, 29 seconds financials for some numbers here. Our volumes and profitability for Q4 and financial year 26 continue the strong 16:37 16 minutes, 37 seconds trajectory supported by healthy growth and sustainable margins. On consolidated basis, revenue grew by 24% yearonear in 16:46 16 minutes, 46 seconds Q4 to 1050 cr. For financial year 26, the consolidated revenue grew by 11% yi 16:54 16 minutes, 54 seconds to 3,821 cr. On a standalone basis, revenue again grew by 24% y 17:02 17 minutes, 2 seconds uh in Q4 uh 2819 crores. Whereas in the financial uh year it grew by 11% by wide 17:10 17 minutes, 10 seconds to 2,962 crores. Our consolidated core eida stood at 121 cr for the fourth quarter growing 17:20 17 minutes, 20 seconds by 90% on a yearon-year basis. Coreida margins improved by around 400 basis points to 11.5% from 7.5% last year. 17:31 17 minutes, 31 seconds Financial year 26 consolidated for AIA stood at 414 cr. The bench uh for the 17:39 17 minutes, 39 seconds first time we as a company have crossed 400 cr by growing by around yi with a margin 17:48 17 minutes, 48 seconds expansion of 261 basis points to 10.8% uh for the year. This improvement was 17:54 17 minutes, 54 seconds driven by incremental sales, better gross margins and discipline control over operating or fixed cost. 18:03 18 minutes, 3 seconds I am pleased to share that the consolidated pad for Q4 stood at 92 cr representing a seven times increase on a 18:11 18 minutes, 11 seconds year-on-year basis. For financial year 26, the consolidated fat stood at 161 cringing 18:20 18 minutes, 20 seconds by around 78% by if you look at the yearly figure of 171 18:27 18 minutes, 27 seconds cr out of this 144 crores came in the last two quarters only. In the first two quarters we had certain impacts of mark 18:35 18 minutes, 35 seconds to market on the investments that we have put in government securities. 18:40 18 minutes, 40 seconds So uh during the last two quarters we have done 144 crores which means a run rate of more than 70 crores per quarter 18:49 18 minutes, 49 seconds and with the the expected growth we expect to continue the momentum going forward. 18:55 18 minutes, 55 seconds During financial year 26 the company also reduced net by 156 crores reflecting the underlying cash 19:03 19 minutes, 3 seconds generation of the business and continued focus on balance sheet discipline. 19:08 19 minutes, 8 seconds At the time of colon's acquisition, the consideration was paid in high was paid was higher than the tangible value of 19:15 19 minutes, 15 seconds the asset. This is generally the case when you acquire a strong brand which provides returns over a longer period of 19:21 19 minutes, 21 seconds time. However, to look at uh the returns from a shorter period of time, when we exclude the indentable portion of the 19:30 19 minutes, 30 seconds investment and calculate return on capital employed, we see that it currently stands at around 18%. 19:37 19 minutes, 37 seconds Which even before caron acquisition was around 17%. This demonstrates that our return matrices have also improved in 19:46 19 minutes, 46 seconds comparison to what it was before caron acquisition and we are only in the midst of our journey. With this I request the 19:54 19 minutes, 54 seconds moderator moderator to open the floor for questions and answers. Thank you. 20:01 20 minutes, 1 second Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the test on telephone. 20:12 20 minutes, 12 seconds If you wish to remove yourself from the question queue, you may press star and two. 20:17 20 minutes, 17 seconds Participants are requested to use handsets while asking a question. 20:22 20 minutes, 22 seconds Here is hand center. We will wait for a moment while the question cube assembles. 20:31 20 minutes, 31 seconds The first question is from Rahul Agraal from it. Please go ahead. 20:37 20 minutes, 37 seconds Hi sir. Uh good evening and thank you for the opportunity. Congratulations uh for a decent performance. Uh Raji just 20:45 20 minutes, 45 seconds firstly to start with going forward you know uh fiscal 26 was a year of hard work to get his growth and profitability 20:52 20 minutes, 52 seconds back. uh I think to keeping the momentum you know going from here on what are the top two three things you know you're 21:00 21 minutes spending time on your team is spending time on in terms of you know both staying ahead of competition and at the same time improving you know the return 21:08 21 minutes, 8 seconds on capital of the business you could share your top down thoughts for the entire business overall how you're looking at next two three years uh that 21:16 21 minutes, 16 seconds will be really helpful that's the first So if you want to answer that. 21:26 21 minutes, 26 seconds Yeah. So uh Rahu uh as we have I outlined in our earlier uh conversations also uh during these calls uh we had 21:35 21 minutes, 35 seconds taken a target that we would uh be uh first re trying to reach a growth rate 21:43 21 minutes, 43 seconds of around 15% plus. Now since raw materials have increased last year this this should be better than 15%. And so 21:51 21 minutes, 51 seconds first and foremost country uh thing is how we can strengthen our different product lines and our different business lines to deliver the growth that we have 22:00 22 minutes committed to the market and consequently improve the profit line. 22:06 22 minutes, 6 seconds Also going forward we will be looking into uh very complimentary business lines which are related to us and some 22:13 22 minutes, 13 seconds of them we have already initiated for example the pillow segment that's a market of around 100 crores but we till 22:21 22 minutes, 21 seconds now were giving out only pillows as free along with the mattresses now we will be treating it as 22:29 22 minutes, 29 seconds a separate category and building it upon thirdly the two segments which are the 22:36 22 minutes, 36 seconds e-commerce segments and the U2O segments continue to be will continue to be our strong focus areas because these are the 22:45 22 minutes, 45 seconds areas which we need to penetrate uh deeply uh not only to maintain our 22:52 22 minutes, 52 seconds leadership status but also uh to grow further in this country which has around 85% of its market uh currently occupied 23:01 23 minutes, 1 second by unorganized traditional metro segment so I think not on a one or two year but on a 3 to 5 year horizon rate our 23:09 23 minutes, 9 seconds objective would be to get into related product category so that we are a full product player and increase our 23:17 23 minutes, 17 seconds penetration across the country maybe Rakkesh you have something to say that's fine no that's fine yeah fine fine that's that would be 23:25 23 minutes, 25 seconds sufficient Rahul in case you have anything addition to ask please let us know sure thank you so much it gives some 23:34 23 minutes, 34 seconds clarity uh Second was I just wanted to touch upon the input cost information bit of it. Uh if you could just uh talk 23:41 23 minutes, 41 seconds about you know where are TDI and poly pricing right now uh and how do you plan to pass it through uh both for 23:48 23 minutes, 48 seconds mattresses and foam segments. Uh we just talk about you know what kind of pricing we looking forward to uh across segments 23:56 23 minutes, 56 seconds and uh is that sufficient enough to you know let the margin actually sustain or maybe expand going forward. That's my last question. 24:06 24 minutes, 6 seconds So that's like a extremely difficult question and probably multiple questions put all together. Now the um pricing of 24:16 24 minutes, 16 seconds TDI and polyol is like uh um like a crystal wall grazing at the moment or 24:22 24 minutes, 22 seconds grazing at the moment. Um and it's not moving only in one direction but it's also moving in both 24:30 24 minutes, 30 seconds directions and moving in large quantities. So what used to be some 2 three four five rupees 10 rupees a kilo 24:39 24 minutes, 39 seconds in a year that you would see something moving up or down or up and down now you suddenly have 40 and 50 rupees at a time 24:48 24 minutes, 48 seconds happening multiple times in in a month. 24:54 24 minutes, 54 seconds Therefore to handle that we are learning how to do it. 24:59 24 minutes, 59 seconds But thankfully some of our segments help us like the B2C segment. 25:07 25 minutes, 7 seconds There are some others which are stable but also move slowly don't move along with them with the raw material market 25:14 25 minutes, 14 seconds which is a B2B segment. And then there is also the industrial segment which moves even quicker than the raw 25:22 25 minutes, 22 seconds material. So it's a mixed bag. It's something that um 25:29 25 minutes, 29 seconds we can't say that we have full handle on um but should be able to sail through um 25:37 25 minutes, 37 seconds and believe that as soon as the war kind of finishes off this oscillations or um 25:45 25 minutes, 45 seconds volatility will will reduce. Now you are asking what the future of these prices of the raw materials would be. Um they 25:54 25 minutes, 54 seconds are definitely at a high level at the moment. 25:58 25 minutes, 58 seconds I can only give you a last five years average where uh polyol should be and where TDI should be. The polyol should 26:07 26 minutes, 7 seconds be around 120 bucks and TDI should be around 240 or something like that. Uh but at the 26:15 26 minutes, 15 seconds moment they are both above that. um were very difficult to predict. I cannot I 26:22 26 minutes, 22 seconds cannot add anything more. Yeah, you want to add? 26:26 26 minutes, 26 seconds Yeah, I can I can just say that uh we have been also able to uh pass on the cost increase due to raw material 26:35 26 minutes, 35 seconds uh uh across all the channels B2C side uh the industrial foam side and partly 26:44 26 minutes, 44 seconds also on the B2B side. So, so we see a opportunity also for a margin expansion 26:51 26 minutes, 51 seconds which we've experienced in uh March and also uh going forward that opportunity exist. 26:59 26 minutes, 59 seconds So, and as far as the raw material like Rousey rightly put it. So, so the raw materials definitely are looking 27:06 27 minutes, 6 seconds southwards now but it's a it's a very volatile situation. I mean uh it's a function of both availability and the pricing. 27:14 27 minutes, 14 seconds So while it is it is going down because of the demand but the moment uh somebody picks up uh a good quantity it it it 27:23 27 minutes, 23 seconds starts looking northward. So it is it's a it's a play of supply chain currently. 27:30 27 minutes, 30 seconds Go ahead could you quantify the price? 27:34 27 minutes, 34 seconds So currently uh TDI is the main supplier is GNSP. So their price is uh about 275 27:43 27 minutes, 43 seconds and poly all is uh around 180. 27:48 27 minutes, 48 seconds Kakage I was actually asking about the price I've taken for car mattresses and foam. What is the pass through you've taken so far? That's what I wanted. 27:58 27 minutes, 58 seconds So uh reticent to give in percentage terms. uh they are different for different categories as Rakkeshi just 28:05 28 minutes, 5 seconds mentioned that in matrices we have been able to take decent ones B2B a little lesser uh that industrial segment yes we can 28:14 28 minutes, 14 seconds pass on immediately uh but yes uh polyol and TDI on an average increase between 28:20 28 minutes, 20 seconds 25 to 35% and depending on how much home is consumed in different categories we have been able to increase prices to 28:28 28 minutes, 28 seconds offset those price increases and to some extent and maintain our margins. 28:35 28 minutes, 35 seconds Well, thank you so much. I'll get back in with you. All the best for the next year. Thank you. Thank you. 28:43 28 minutes, 43 seconds Elisa and gentlemen, a reminder to all please limit your questions to two poor participants so that management can address more participants. Should you 28:52 28 minutes, 52 seconds have a follow-up question, we would request you to rejoin the queue. The next question is from Arjun Karna from Kotak Mutual Fund. Please go ahead. Uh 29:01 29 minutes, 1 second thank you for taking the question and congratulations better set of numbers this time around. So uh the first query is just on the marketing expenses 29:09 29 minutes, 9 seconds because we've been uh bringing that out uh historically uh I didn't quite catch it in this uh uh presentation. So how 29:16 29 minutes, 16 seconds much would we have spent in the fourth quarter and uh how much would we as a percent of sales would be for FI26? 29:25 29 minutes, 25 seconds So Rahul uh Arjun sorry Arjun uh for the entire year it should be around 4 and a half% uh almost similar to what did last 29:34 29 minutes, 34 seconds year uh for the last quarter on quarter is a fraction that moves on I think it 29:41 29 minutes, 41 seconds would be a little lesser because 4Q3 is the highest uh percentage we spend upon so maybe around four odd%. 29:49 29 minutes, 49 seconds Fair. Uh helpful. Uh sir, the second question is on the depreciation side. Uh I just wanted to understand uh post 29:57 29 minutes, 57 seconds these changes, what outlook uh do we anticipate for FI26? 30:02 30 minutes, 2 seconds Uh uh what should be the number we should work with? 27 or 26. 30:08 30 minutes, 8 seconds 27 sorry 27. Okay. So uh R I think uh uh at a consolidated level we would be 30:16 30 minutes, 16 seconds looking for a depreciation based on current efforts and I'm not commenting what incremental depre we might have for capital investment that we do next year 30:24 30 minutes, 24 seconds should be around 140 to 145 crores at a consolidated level. 30:30 30 minutes, 30 seconds Sure. So uh this quarterly uh run rate of 35 essentially one can annualize uh this number. Yes. Yes you can. 30:39 30 minutes, 39 seconds Sure. And the the final bit on keg for next year uh what what's our outlook? 30:47 30 minutes, 47 seconds So including maintenance uh and some bottle debottlenecking uh necking capacities because we have grown by 30:54 30 minutes, 54 seconds around 15% in volume this year and we anticipate even a higher growth in the next year. Uh so we will need certain 31:01 31 minutes, 1 second debottlenecking capex uh at certain of our facilities to meet this volume. uh we should be somewhere between 125 to 150. 31:11 31 minutes, 11 seconds This is including uh maintenance kex everything. This is including marketing capex which is for opening of new 31:19 31 minutes, 19 seconds stores. This is maintenance kex for all our plants both in India, Australia and Spain. And this is also any new capeex 31:27 31 minutes, 27 seconds we need for rebotting everything included. 31:30 31 minutes, 30 seconds Perfect. Uh thank you so much for answering these questions. Thank you. Thank you. 31:37 31 minutes, 37 seconds The next question is from Deepali Kumari from Marian Capital Market. Please go ahead. 31:43 31 minutes, 43 seconds Uh thank you so much for giving this opportunity. So the first question is the unorganized to organized segment 31:50 31 minutes, 50 seconds showed a massive growth. So how is this information? 32:03 32 minutes, 3 seconds Sorry Deepali you were not very clear. 32:05 32 minutes, 5 seconds Can you please we could uh understand that you two have shown a high growth but after that what you said please can you repeat? 32:13 32 minutes, 13 seconds So my question is uh the unorganized to organized to the level of growth. Uh how 32:20 32 minutes, 20 seconds is this market across many states where you do not have the major? 32:28 32 minutes, 28 seconds Sorry ma'am ma'am you are not audible. 32:31 32 minutes, 31 seconds Please join back. Thank you. The next question is from Amit Mahendale from Robo Capital. Please go ahead sir. 32:40 32 minutes, 40 seconds Thank you. Uh my first question is on the margins. Is it fair to say that you know in the backdrop of uh escalation in 32:47 32 minutes, 47 seconds raw material prices are margins margins will be under pressure in Q1 or Q2? 32:57 32 minutes, 57 seconds Sorry I could not get your question. Can you please repeat it? 33:00 33 minutes Yeah, in backdrop of raw material prices uh you know our time margin should be under pressure in Q1 or Q2 right because Q4 must be we must be having stocks at 33:09 33 minutes, 9 seconds old prices the inventory may be there the raw material inventory but Q1 and Q2 we may have to use the inventory which 33:16 33 minutes, 16 seconds is bought at higher prices and I'm assuming that there will be some pressure on the data margin in Q1 and Q2 33:23 33 minutes, 23 seconds no so if you see our gross margins uh see what happens is whenever there is a raw material price increase. It is not 33:31 33 minutes, 31 seconds that we instantly can increase the price of our uh products to the consumers also. Uh it's a process which takes around 10 to 15 days and same is the 33:40 33 minutes, 40 seconds quantum of inventory that we have. So the higher price inventory almost maps up with the increase in the prices and 33:48 33 minutes, 48 seconds that's why you see there is no not a very material increase in gross margin uh in the quarter as as uh uh in as 33:56 33 minutes, 56 seconds compared to the fourth quarter quarter last year. it would be almost a 1500 basis point improvement. So technically there was no impact of uh uh lower raw 34:06 34 minutes, 6 seconds material prices when these prices uh went up. Similarly in the first and the second quarter we don't impact any 34:13 34 minutes, 13 seconds expect any impact of higher raw material prices. I don't say there might would not be 1500 basis points. There can be 34:20 34 minutes, 20 seconds prices are very volatile currently but not more than that. What leads to Eida margin and which has been done in the fourth quarter is an increase in volume. 34:30 34 minutes, 30 seconds We are a 30% plus contribution margin business and whenever there is an increase in volume that directly flows to the bottom line strengthening the 34:37 34 minutes, 37 seconds IIDA margin and that's why that's the reason why we will be focusing on growth which we have done last year and we will be doing in the current year. 34:47 34 minutes, 47 seconds And I I was just trying to figure out I mean if the poly prices have gone up from say 120 to 180 I'm sure we not able to pass on such a large increase. I mean 34:55 34 minutes, 55 seconds even even a like a 20 25% increase is difficult to pass on. So how are we confident you know I'm just 35:03 35 minutes, 3 seconds so I'll take that. I think uh what Rousey mentioned is 120 uh was the ideal 35:10 35 minutes, 10 seconds price for poly and 120 was a price in January. So the price started rising from February and then there was a sharp 35:19 35 minutes, 19 seconds spike towards end of February when the war started. So the polyhol price had gone up to 220. 35:27 35 minutes, 27 seconds So so what Amit is saying is when it was rising so we were able to pay price increasing and now uh the the highest 35:35 35 minutes, 35 seconds price that is it has gone up to is 220 and currently it is at 180. It is oscillating between 200 and 180. So the 35:45 35 minutes, 45 seconds part price increase has already been taken. So therefore it will not impact the margins going forward. 35:52 35 minutes, 52 seconds Okay. Great. And the last question. Yeah. No go ahead. 35:57 35 minutes, 57 seconds Understood. Thanks. My last question is on Perlano. What is your plan uh you know for say next 3 four years? What how 36:05 36 minutes, 5 seconds do we see that business doing and how you know any long-term plans there three four year plan? 36:18 36 minutes, 18 seconds So for Leno already is at about 370 crores. Next year's plan is about 500 36:24 36 minutes, 24 seconds crores and it's tracking well. Um I think two things that we look forward 36:31 36 minutes, 31 seconds to. one is that when would be a right time for doing an IPO and um we will take our decision 36:41 36 minutes, 41 seconds somewhere in the next uh 3 to four months time right sir and the last question is on 36:48 36 minutes, 48 seconds the debt levels if you could uh you know uh what could be our debt levels for next two years 27 and 28 36:56 36 minutes, 56 seconds so uh to answer that question I'll divide the debt between two parts one the debt which is outstanding on Indian books and the second the debt which is outstanding in Spain and Australia. 37:06 37 minutes, 6 seconds Spain and Australia is around 350 odd crores. 37:15 37 minutes, 15 seconds So that is 350 crores which is self liquidating uh is being paid off from the cash flows of uh Australia and Spain itself. The other 300 out is in India. 37:28 37 minutes, 28 seconds Uh which uh uh I think if you see or utilize the entire cash flows what we are anticipating should be paid in the next one one and a half years. 37:40 37 minutes, 40 seconds Okay. Great. Thank you very much. Uh okay. Thank you. 37:48 37 minutes, 48 seconds Thank you sir. 37:53 37 minutes, 53 seconds participants, we request you all to please limit your questions to per participant. We have next question from Mr. Prateesha from Lucky. Please go ahead. 38:03 38 minutes, 3 seconds So, I uh couldn't get the uh the answer on Feno. So, first uh Feno is now 38:10 38 minutes, 10 seconds materally 60 crores profit the company and we have about around about 60 plus% funding. So what is the course of uh you 38:20 38 minutes, 20 seconds know uh business plan there and what kind of roe or roe that business operates at. 38:30 38 minutes, 30 seconds So first of all we don't hold 60% I'll just correct that number. We hold around on a fully diluted basis we hold around 38:37 38 minutes, 37 seconds 43% in Berlin. We are the largest shareholder and we hold majority on the board and the uh shareholder meeting. uh 38:46 38 minutes, 46 seconds uh uh these two uh yes we have done 60 cr uh in the current year uh roe for the 38:55 38 minutes, 55 seconds company will be different but uh uh I can say that we have done a total investment of around 430 cr for our 39:03 39 minutes, 3 seconds investment even if you take 1,000 cr basis debt uh uh which is divided into debt and equity I think it's a metric uh that can 39:13 39 minutes, 13 seconds vary what is important Here is return on capital employed. The assets that Fango has deployed and the type of EBIT that 39:20 39 minutes, 20 seconds it is getting the return on capital employed is around 30 to 35% for Fango. 39:28 39 minutes, 28 seconds Our returns of course will come mainly uh to the valuation of the company since we are a shareholder 39:35 39 minutes, 35 seconds uh and that will depend upon what price uh the company gets listed. 39:42 39 minutes, 42 seconds So this company is going for IPO not currently but there are plans to go for IPO once it reaches a threshold type 39:50 39 minutes, 50 seconds which as Rahul Gi just mentioned maybe then one year from now or maybe a little bit later than that. 39:57 39 minutes, 57 seconds Okay. And on the uh on the debt and the interest cost part uh so you said that the debt of uh of India will be repaid in one and a half years. 40:09 40 minutes, 9 seconds Yeah. So the cash flow generated generated will have capacity to repay the India debt in one and a half years since it is around 300 grow 40:18 40 minutes, 18 seconds whether we will pay or we will utilize that cash for further growth in the business that's something different because these are immaterial debts if 40:25 40 minutes, 25 seconds you pay that to a it is less than one and can you give out the interest cost for uh for the next two years you know 40:32 40 minutes, 32 seconds that would be helpful the way you give out depreciation cost maybe you could give out the interest cost so I can confirm consolidated level as I 40:41 40 minutes, 41 seconds said if you add up you will have a debt of around 600 to 700 crores. Uh the interest cost for the debt would be 35 40:48 40 minutes, 48 seconds crores and another 15 odd crores for bank charges and other things. So at a consolidated level finance cost should a 40:55 40 minutes, 55 seconds figure of around 50 odd crores until and unless we do major changes in the capital structure. Okay. Okay. Done. Thank you. 41:04 41 minutes, 4 seconds Thank you. Thank you. 41:07 41 minutes, 7 seconds The next question is from Richesa from Investic Capital Services. Please go ahead. Yeah. Hi sir. 41:13 41 minutes, 13 seconds Thanks for the opportunity sir. First question is on U20. Uh if you look at the portfolio volume growth is around 65% and the value growth is triple one. 41:22 41 minutes, 22 seconds So sizable difference between value and volume over here. Uh sir if you could provide some color on why this gap what is it that we have changed was the last one year. That's the first question. 41:37 41 minutes, 37 seconds So uh the volume growth is 61%. 65% and value growth is 111%. 41:43 41 minutes, 43 seconds Great. So so ret has happened is that we have introduced a higher model. Uh earlier when we had launched this product we had launched with only one 41:52 41 minutes, 52 seconds model. So now we have introduced another model at a higher price point. uh that is one and second is there also has been 42:01 42 minutes, 1 second a price increase uh in both the models. So it is a result of that. 42:09 42 minutes, 9 seconds Sure. And sir, what would be uh the volume contribution by percentage uh for you for U20 on the total volumes that the company does? 42:20 42 minutes, 20 seconds So Resh I'll have to get back with those these numbers. We generally don't disclose the distribution of matric between different categories. 42:28 42 minutes, 28 seconds uh but I'll have to get back with those figures. I'll talk to you separately on that. 42:32 42 minutes, 32 seconds Sure. And sir uh just uh over here would would it be margins accretive or higher than uh what we report at standalone basis over here specifically for U20? 42:45 42 minutes, 45 seconds Uh it would be more or less would be more or less a not lower than the offline matrix and much higher than the 42:53 42 minutes, 53 seconds ecom. So it would lie somewhere in between. 42:57 42 minutes, 57 seconds Fair enough. Uh sir, would you like to comment something on ecom? Uh basically again it has done quite well. Uh 52% 43:05 43 minutes, 5 seconds value growth. Uh if you could highlight what is our thought process over here because historically we did very well then we scaled it back. Uh again we are 43:14 43 minutes, 14 seconds back on the panel over here. So how should we look at this part of the business? 43:19 43 minutes, 19 seconds So ret we are uh on two sides we are uh put additional focus on the brand.com 43:26 43 minutes, 26 seconds site and uh that is that is one uh as a platform and second is we have also put focus on karnon. 43:36 43 minutes, 36 seconds So both these put together has led to a substantial growth on the brand.com site. Uh also on the platform kern was 43:45 43 minutes, 45 seconds lagging behind. So we had to make some changes and uh uh in in terms of uh our 43:52 43 minutes, 52 seconds uh uh play in the uh on the platform. So that has also yielded good results. It's a combination of these two things which has led to this growth. 44:03 44 minutes, 3 seconds Sure. And just last question uh what is the motivation of changing the depreciation policy right now? 44:12 44 minutes, 12 seconds So uh I think depreciation policy was very skewed whenever we used our foaming 44:19 44 minutes, 19 seconds machines last if you see an example of our foaming machine in greater it has been installed for last 22 years now and 44:28 44 minutes, 28 seconds is functioning well producing around 25,000 tons of foam or rather more than that perm uh generally these machines last for 44:37 44 minutes, 37 seconds very long around 40 to 50 years. So if we follow the written down method uh then potentially it depreciates the 44:46 44 minutes, 46 seconds machine to the extent of 70 75% in the first uh 3 four years which does not 44:53 44 minutes, 53 seconds reflect the actual amotization of the asset on the revenue that it generates and it is it excuse uh the things. So uh 45:02 45 minutes, 2 seconds and secondly the second biggest part of our assets is generally plant uh building and uh uh building and related 45:10 45 minutes, 10 seconds assets lands don't get get depreciated even buildings have a life of 40 to 50 years. So just to align the cost of 45:19 45 minutes, 19 seconds depreciation which is allocated to business on a year on bas year basis in line with whatever uh with the useful 45:27 45 minutes, 27 seconds life of that particular asset and what value it delivers over 40 50 years we have realigned the policy to reflect realistic figures. 45:37 45 minutes, 37 seconds Yeah sir I will call you for this separately just last question I think uh we had 40 crores of some synergy savings which were still pending. I think we had 45:45 45 minutes, 45 seconds given a number of 150 plus copy. Poppy was trending. It was contingent on certain new machines. Uh it could just provide some color on the timelines of 45:52 45 minutes, 52 seconds the incremental synergy pending benefit and by when the machines will come. Thank you. 45:58 45 minutes, 58 seconds So uh you're right. We had said that we will realize a total synergy of 250 crores out of which around 1902 200 we 46:06 46 minutes, 6 seconds had done till two quarters back. uh 40 crores was to come from some new machines which were imported uh with a 46:14 46 minutes, 14 seconds new material of malleable fiber to be used as a comfort layer that is currently under installation. Uh it is 46:22 46 minutes, 22 seconds delayed by a quarter and a half. Uh but I think by the by the mid or end of this quarter that will be installed and we 46:31 46 minutes, 31 seconds might see that scaling up in the subsequent quarter. 46:36 46 minutes, 36 seconds Thank you sir. Thank you so much. Thank you. 46:40 46 minutes, 40 seconds Thank you. The next question is from Rishi Modi from RDM Advisory LLP. Please go ahead. 46:48 46 minutes, 48 seconds Yeah. Hi sir. Am I audible? Yes. Yes sir, you are. 46:53 46 minutes, 53 seconds Yeah. Uh my first question. So we've seen impressive volume growth in technical firm and comfort firm in this quarter. 47:00 47 minutes uh just wanted to check for any oneoff B2B orders in technical form or any inventory stocking up by the channel in 47:09 47 minutes, 9 seconds view of price due to crude volatility. 47:16 47 minutes, 16 seconds So uh so uh uh so as if I look at the 47:24 47 minutes, 24 seconds annual uh picture of both uh B2B and the comfort form. So we we started uh 47:32 47 minutes, 32 seconds putting more focus on these two segments and there were some structural changes in the distribution and also the way we 47:39 47 minutes, 39 seconds were approaching the market. So one is a function of that. So overall we have grown in both these segments upwards of 47:46 47 minutes, 46 seconds 15%. Water for four there has been a spike uh which is primarily two reasons. 47:52 47 minutes, 52 seconds One is what whatever step we had taken to build this business further. Uh that is one and second uh when the war broke 48:01 48 minutes, 1 second we were in a much better position to continue serviceability in the market. 48:06 48 minutes, 6 seconds So there was who were finding it difficult to uh maintain their supply chains. So those uh orders also got 48:13 48 minutes, 13 seconds shifted to us. But if you see on an annual basis, I mean these businesses are now at a level of uh 15% growth on 48:22 48 minutes, 22 seconds an annual basis and uh our plan for the next year is also on the similar line. 48:29 48 minutes, 29 seconds Okay. So um and this customer gains that we have done right say people who 48:36 48 minutes, 36 seconds weren't able to supply to these guys now we've gotten them as our clients or incremental volumes from existing clients who were buying from somewhere 48:44 48 minutes, 44 seconds else. Uh is that also continuing like maybe because we're giving better 48:51 48 minutes, 51 seconds service or better pricing or they have reverted back to their existing suppliers? 48:58 48 minutes, 58 seconds Sure. As I said, we had taken these two as also uh focused businesses where some changes 49:06 49 minutes, 6 seconds uh had to be made which which took some time. So so that was irrespective of the uh war and the scarcity of raw material. 49:15 49 minutes, 15 seconds So so those those actions were all already started uh getting implemented and showing results. 49:22 49 minutes, 22 seconds Now as far as this was concerned that the March and the month of April is concerned, this is where uh some customers who have moved out also 49:30 49 minutes, 30 seconds started buying. So then obviously we will uh retain them and that's that's what the plan is going forward. 49:39 49 minutes, 39 seconds Okay, got it. My second question was on the international piece, right? Um so I'll split it. Australia are gross 49:46 49 minutes, 46 seconds margins have expanded quarteron quarter while also other expenses have increased. um quarter and quarter 50 crores in Q4 versus 42 crores expense in 49:56 49 minutes, 56 seconds Q3. So just uh is this some reclassification or could you help me understand that? And then also on the 50:03 50 minutes, 3 seconds same piece the gross market and the fixed expense as a percentage has come to about 20%. 50:15 50 minutes, 15 seconds Uh how much of that is fixed versus variable? So in case say things the gross mark like I'm just trying to assess the sensitivity here. 50:25 50 minutes, 25 seconds Sure. Uh so let's start with Australia. 50:29 50 minutes, 29 seconds Uh Australia has shown a steep uh increase in gross margin in the current year uh current quarter I would say not 50:37 50 minutes, 37 seconds the year. Uh two reasons. One yes efficiency measures have been uh there on for last one year or so. The margins 50:45 50 minutes, 45 seconds we achieved evid the margins we achieved there last year was 6%. So we were on an improvement expree throughout the year. 50:53 50 minutes, 53 seconds Uh the methods that were applied was one creating efficiency with the wastage that they created and secondly taking 51:00 51 minutes price hikes with the customers which had not been taken for a very very long period. Now this a little bit of 51:08 51 minutes, 8 seconds disruption in the raw material prices created a little bit of plus and minus in Australia. But I think uh to some 51:16 51 minutes, 16 seconds extent uh maybe around 54 55 odd percent uh Australian margins have uh improved 51:23 51 minutes, 23 seconds uh there may be aberration of 3 4%. Uh so you should be able to see four 5% higher than the normal margins it used to in the past. 51:34 51 minutes, 34 seconds Now as far as the fixed costs are concerned I would request you look at it as a percentage of total revenue because 51:41 51 minutes, 41 seconds exchange rates have gone differently. So when you convert a trillion dollar into rupee which was 55 a year before to 65 51:48 51 minutes, 48 seconds now it's a different scenario right so uh six reflect only that portion when 51:55 51 minutes, 55 seconds you move to Spain uh because Europe was going through 52:03 52 minutes, 3 seconds challenges so the pricing realization that would be done in Spain was much better uh I would not say 32 33% would be a 52:12 52 minutes, 12 seconds stable sort of margin but I would I can comment that around between 30 to 32% would be a stable margin it will not 52:20 52 minutes, 20 seconds revert to 2829 which we had seen in the uh past and uh uh yeah that way the 52:28 52 minutes, 28 seconds profitability will remain there and is there still scope for cost uh 52:35 52 minutes, 35 seconds optimization there or that 20% other expenses is going to largely remain around that 20% Oh, 52:44 52 minutes, 44 seconds so some minor improvements may happen but but broadly it would remain the same. Yes, turnover improves because there is a very strict cost control 52:52 52 minutes, 52 seconds there. If you see the fixed cost structure between Australia and Spain, Spain is very small. 52:58 52 minutes, 58 seconds uh but uh uh scope is always there but I would not say any material sort of a scope there and our intent with both 53:06 53 minutes, 6 seconds Australia and Spain is also not to go to a profitability of 16 18% because we do we know those type of profitabilities 53:13 53 minutes, 13 seconds don't survive in those countries so intent is to retain it between 10 to 12% which which to some extent is feasible 53:20 53 minutes, 20 seconds in these countries and possible okay so Please join. 53:28 53 minutes, 28 seconds Yeah, just a quick question. Let me It's a continuation on the international piece on you. Uh you all were planning to sell or you all were exploring 53:36 53 minutes, 36 seconds whether to sell off the international business. that still in the plans or we now going to continue with this business 53:43 53 minutes, 43 seconds as so I think one of the uh investor 53:51 53 minutes, 51 seconds conferences I had mentioned this that we are open to that and I think our position remains the same that we are 53:59 53 minutes, 59 seconds open to that but that doesn't mean that we are switched off from it we will pursue that uh and uh wait for right 54:09 54 minutes, 9 seconds person to come at or the right uh party to come at the right time but at the moment it's we still do whatever is necessary to maintain that business. 54:20 54 minutes, 20 seconds Got it. Thank you. That's it from my Thank you. Thank you. 54:26 54 minutes, 26 seconds Participants are requested to limit your questions to per participant. We have next question from 54:33 54 minutes, 33 seconds Palidesh Pandy from Suka Capital. Please go ahead. Yes, I just Hello. Can we hear? 54:41 54 minutes, 41 seconds Yes, we can. 54:43 54 minutes, 43 seconds Yeah, we just wanted to understand just going back to the previous you know uh inventory question and the you know uh 54:51 54 minutes, 51 seconds channel stocking on that comfort home technical home. I I just wanted to because the raw material prices have 54:59 54 minutes, 59 seconds increased so much. Are you saying there was no channel stocking in this quarter? 55:06 55 minutes, 6 seconds No as already because of two reasons. One the work 55:16 55 minutes, 16 seconds that has been done throughout the year with the new customers and second because uh some of the players smaller players has gone out of business and 55:24 55 minutes, 24 seconds that business came to us. Uh so there we don't anticipate any major channel 55:31 55 minutes, 31 seconds stocking and uh foam is a very bulky material. you can't go beyond the volume to stop foam. It's very difficult. Uh so 55:40 55 minutes, 40 seconds we don't anticipate any choking or blocking of the channels uh and resulting in any challenges in the subsequent months. Uh it was a genuine 55:49 55 minutes, 49 seconds demand in the market which the existing suppliers of those uh customers could not fulfill which we went ahead and 55:57 55 minutes, 57 seconds fulfilled. But that was some part of of the growth. The rest part of the growth was our own uh efforts and what we had been doing in the past. 56:07 56 minutes, 7 seconds Thank you. The next question is from Pritesh Shira from Lucky. Please go ahead. 56:13 56 minutes, 13 seconds So just one question a slightly broader observation. So what specifically since the last two years have we brought in uh 56:22 56 minutes, 22 seconds to for the volume growth in the India business uh improving uh and you know if 56:30 56 minutes, 30 seconds you could articulate that and the sustains of the same so we have about a double digit number this year as well. 56:37 56 minutes, 37 seconds So uh some key points there. 56:46 56 minutes, 46 seconds Yeah, see there were multiple things. Uh one uh uh very sharp focus uh on all 56:54 56 minutes, 54 seconds these. Uh so once we took over Kurlon, it was a new animal for us. Uh a very different sort of a company though we 57:03 57 minutes, 3 seconds used to sell the same products but the companies were very very different. The way it sold, the way it produced, the way it managed the business. Uh we 57:11 57 minutes, 11 seconds struggled with it for a year or two. uh and I think you all are witness to that uh that how we struggled but that also 57:20 57 minutes, 20 seconds led us to more detailing and more focused on our existing business and we identified certain priorities for 57:28 57 minutes, 28 seconds ourselves uh which we had reflected in our commitments to the market also of course we could partly meet them going ahead we hope to meet uh the full 57:36 57 minutes, 36 seconds commitment uh which was growth on one side and profitability on the other side so very 57:43 57 minutes, 43 seconds profitable growth part of the model. The entire focus and energy of the organization was shifted uh to these 57:52 57 minutes, 52 seconds two. Uh the discussions that now we have the opportunities that now we explore the push that we give to the market each 58:01 58 minutes, 1 second and every category what we study and try to see what best can be done. I think the level of uh working and the level of 58:09 58 minutes, 9 seconds dedication in those have gone up and the focus of the organization to long-term planning has solidified which also gives 58:17 58 minutes, 17 seconds us the confidence to tell you that this growth is going to continue in future nothing else I don't think raw material has changed I don't think market has 58:26 58 minutes, 26 seconds changed customer has changed or anyone has changed but yet our way of looking at the business and putting targets in 58:32 58 minutes, 32 seconds front of ourselves has changed any channel related changes. Uh and uh 58:40 58 minutes, 40 seconds uh and uh since both the brands are operating in different geographies but trying to also have aspirations in their 58:48 58 minutes, 48 seconds core geographies any so uh the brandwise focus continues 58:58 58 minutes, 58 seconds because they both have evolved in their own way. So that is that is one uh which 59:04 59 minutes, 4 seconds we uh have put more focus on and second is also on the wide spaces for channel 59:11 59 minutes, 11 seconds expansion. So last year also saw a massive expansion uh covering many areas where we were not represented. 59:21 59 minutes, 21 seconds Uh there is also a a system to uh look at our channel partners where we are also getting more and more accountability on that side. 59:32 59 minutes, 32 seconds So since they are uh because we have now integrated both the brands under the channel partner. So that piece is also 59:40 59 minutes, 40 seconds uh being looked at very closely being monitored and accountability fixed there. So I think a sum total of all 59:48 59 minutes, 48 seconds these things is uh we are getting better uh as far as the channel is concerned 59:56 59 minutes, 56 seconds and market shares market share uh there is no recent study 1:00:03 1 hour, 3 seconds that uh there is association who used to do it but our belief is that the uh the 1:00:10 1 hour, 10 seconds there is a there is a uh I mean we can we can we can sense that at least for the both the brands and with the U2O 1:00:19 1 hour, 19 seconds kind of initiative and ecom uh the organized uh sector play is improving. 1:00:28 1 hour, 28 seconds So which from last couple of years was on the other direction where the unorganized was kind of growing at a faster rate than organized. Uh we are 1:00:36 1 hour, 36 seconds seeing this change uh now moving more towards organized side. Okay. 1:00:46 1 hour, 46 seconds Thank you. The next question is from Vines Shayer from Sequent investment. Please go ahead. 1:00:53 1 hour, 53 seconds Uh thank you. Thank you for the opportunity sir. Uh wanted to understand on the TVI part. uh if I heard you right earlier uh 1:01:01 1 hour, 1 minute, 1 second in the call you said that VNFC uh is a player who is the biggest uh supplier of TVI but they had their own factories uh 1:01:11 1 hour, 1 minute, 11 seconds you know closed uh you know during the war and also what we heard that one of the biggest probably the biggest player 1:01:20 1 hour, 1 minute, 20 seconds in China and world and they had also stopped supplying uh TDI from China. So 1:01:27 1 hour, 1 minute, 27 seconds how have we managed to procure the required uh amount of TBI quantity? 1:01:38 1 hour, 1 minute, 38 seconds So uh so you're right I mean GNFC was uh shut down uh first uh technical uh 1:01:46 1 hour, 1 minute, 46 seconds reason and then later also because of the uh in the month of March because of the uh natural gas energy. 1:01:55 1 hour, 1 minute, 55 seconds So but the shutdowns were temporary in nature and during that part uh the uh the traders who import uh who cater to 1:02:04 1 hour, 2 minutes, 4 seconds the balance 40% of the market they had increased the rates. So the material was available but it was available at a much 1:02:11 1 hour, 2 minutes, 11 seconds higher price. So, so that is one part and second we had uh uh about few months 1:02:18 1 hour, 2 minutes, 18 seconds back we had also taken an incrincible decision to also hedge our risk risks. 1:02:24 1 hour, 2 minutes, 24 seconds So we had introduced a new supply partner and who was very supportive during this time and we were able to 1:02:32 1 hour, 2 minutes, 32 seconds meet the requirements. So we we did not have any stockout situation though we had to pay a little more for TDI at uh 1:02:40 1 hour, 2 minutes, 40 seconds at at at few times during the month. 1:02:46 1 hour, 2 minutes, 46 seconds Okay. Uh I mean uh was this new supply of Chinese? 1:02:53 1 hour, 2 minutes, 53 seconds So uh so it's a it's a mix of uh uh both the Korea uh there was some material 1:03:00 1 hour, 3 minutes from Japan which was coming in and also from China. So China it is see China China also has more than one 1:03:09 1 hour, 3 minutes, 9 seconds manufacturer. There are couple of manufacturers who are there some of them they bring in the material on their own and they supply it locally as per the 1:03:18 1 hour, 3 minutes, 18 seconds pricing of the market and some you can import directly. So it's a mix of both, 1:03:25 1 hour, 3 minutes, 25 seconds right? Uh that was my message and all the best. Thank you. Yes. Thank you. 1:03:32 1 hour, 3 minutes, 32 seconds Thank you ladies and gentlemen. We will take this as our last question. I would now like to hand the conference over to Mr. 1:03:41 1 hour, 3 minutes, 41 seconds Please go ahead sir. 1:03:42 1 hour, 3 minutes, 42 seconds Yeah. Thanks. Thank you all for joining onto the call. Uh Rahul G if please have some closing remarks. Thank you so much for your time here 1:03:51 1 hour, 3 minutes, 51 seconds thank you very much for conducting the call as usual it has been lot of incisive questions and let me just say 1:03:58 1 hour, 3 minutes, 58 seconds that we continue to learn as you question us and we keep answering that 1:04:05 1 hour, 4 minutes, 5 seconds with that I would just wish you all all the best have a great weekend and we will soon meet again in another quarter 1:04:14 1 hour, 4 minutes, 14 seconds thank you very much thank you thank Thank you on behalf of on behalf of Invested Capital Services 1:04:23 1 hour, 4 minutes, 23 seconds India Private Limited. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.