Supreme Industries — Q4 FY26

Supreme Industries Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=xb3pLk4DVps Published: 2 weeks ago

0:00 Ladies and gentlemen, good day and welcome to Supreme Industries Q4 FYI26 earnings conference call hosted by Dan 0:07 7 seconds Capital Advisors Limited. As a reminder, all participant lines will be in the listenonly mode. There will be an opportunity for you to ask questions 0:15 15 seconds after the presentation concludes. Should you need any assistance during this conference, please signal an operator by pressing star and zero on your 0:23 23 seconds Touchstone telephone. Please note that this conference call is being recorded. I now hand the conference over to Mr. 0:30 30 seconds Aim Pard from DAM Capital Advisors Limited. Thank you and over to you sir. 0:36 36 seconds Thank you Sor. Uh and good evening to everybody joining in for Supreme Industries Q4 and FY26 post earnings 0:43 43 seconds call. Uh so we have as usual the senior management of the company led by Mr. MP Taparia chairman and managing director, 0:50 50 seconds Mr. PC Sani, CFO and Mr. RJ Sabu VP corporate affairs and company secretary. 0:56 56 seconds Thank you and over to Mr. Taparia for his opening comments. Thank you Mr. Ashim. 1:03 1 minute, 3 seconds I am MP Tapia chairman director of the Supreme. 1:08 1 minute, 8 seconds I along with my colleague S P Sani CFO and S RJ Sabu Vice President corporate 1:16 1 minute, 16 seconds affair and company secretary. Welcome all the participant who are participating in the discussion of the 1:24 1 minute, 24 seconds audit distinction alone and consolidate finance result for quarter and year end 31st March 2026. 1:34 1 minute, 34 seconds The extend alone results and the consolidated results are already with you. I will give brief on company 1:41 1 minute, 41 seconds product operating performance highlights. 1:45 1 minute, 45 seconds The company sold 7753,97 ton of plastic goods and achieved 1:53 1 minute, 53 seconds revenue from operation of rupees 11,28 cr during the year under review against 2:01 2 minutes, 1 second sale of 6 lakh 74,510 ton and revenue of rupees 10,446 2:09 2 minutes, 9 seconds cr in the previous year achieving volume and revenue growth. of about 12% and 7% respectively. 2:20 2 minutes, 20 seconds The consolidated operating profit and profit after tax for the year under review stood at rupees 1,654 2:29 2 minutes, 29 seconds crores and rupes 954 cr respectively as compared to rupees 1,52 2:38 2 minutes, 38 seconds crores and rupees 961 cr in the previous year. 2:44 2 minutes, 44 seconds This represents an increase of 7% in operating profit while profit after tax declined marginally by 1% year on year. 2:55 2 minutes, 55 seconds The business scenario of all the polar segment of the company for year end 2026 3:03 3 minutes, 3 seconds as compared to previous years has been under plastic piping system business 3:09 3 minutes, 9 seconds grew by 14% in volume and 11% in value term. Industrial segment business degree by 1% in volume and 3% in value term. 3:24 3 minutes, 24 seconds Packaging pol segment grew by 5% in volume and 3% value term consumer 3:31 3 minutes, 31 seconds product segment business grew by 4% volume and degree by 1% value term. 3:39 3 minutes, 39 seconds The total turn the overall turnout of valuated product increased to rupees 4,677 3:46 3 minutes, 46 seconds cr as compared to rups 4,60 cr in the previous year achieving growth of 15%. 3:56 3 minutes, 56 seconds The company proposed to commit capital expenditure in excess of 1,000 cr during 4:02 4 minutes, 2 seconds the year including carrying for carrying for commitment from the previous year. 4:08 4 minutes, 8 seconds The law includes new green field project for plastic piping system 4:15 4 minutes, 15 seconds and in bi jammu in Jammu and Kashmir and Ga 4:21 4 minutes, 21 seconds near Maharashtra and a new facility for materialing product at Malanur and 4:28 4 minutes, 28 seconds Madhya Pradesh. The proposed and committed capex is principally aimed at 4:35 4 minutes, 35 seconds strengthening manufacturing capabilities, expanding capacity, enhancing product offering and advancing 4:43 4 minutes, 43 seconds sustainability initiative. The plant capital expenditure is expected to enhance the company's annual install 4:52 4 minutes, 52 seconds capacity by approximately 10,000 metric ting 4:59 4 minutes, 59 seconds total installed production capacity to around 1.35 million t perom. 5:08 5 minutes, 8 seconds The financial year 2025 202526 was a challenging yet eventful year 5:18 5 minutes, 18 seconds marked by volatility in prices, prolonged unseen rainfall, subdued 5:25 5 minutes, 25 seconds infrastructure spending and heightened global geopolitical uncertainties. 5:32 5 minutes, 32 seconds Volatility in prices including frequent price movement during the year 5:39 5 minutes, 39 seconds significantly impacted channel dynamics while extended market condition affected demand particularly in the segment. 5:49 5 minutes, 49 seconds Despite the challenges, the company delivered healthy volume growth across its diversified product portfolio 5:58 5 minutes, 58 seconds underpinned by it strong domestic market orientation, wide product range, robot distribution network and discipline execution. 6:08 6 minutes, 8 seconds The plastic piping system business retained it in leadership position aided by continued expansion of product launch 6:18 6 minutes, 18 seconds of new system and capacity augmentation across various location. The company further expanded its portfolio by 6:27 6 minutes, 27 seconds introducing new SKUs and system catering to diverse application in line with the evolving requirement of a growing 6:36 6 minutes, 36 seconds economy with a wider range of electrofusion and oil fitting. The company entered the industrial parking 6:44 6 minutes, 44 seconds system segment thereby opening additional business opportunities. 6:50 6 minutes, 50 seconds During the year, the government announced large infrastructure investment which I expect to support 6:58 6 minutes, 58 seconds demand for water supply network under initiative and the expansion of natural gas infrastructure for household usage. 7:09 7 minutes, 9 seconds The company continued to implement a prudent and welldefined business strategy anchored on five key pillars. 7:17 7 minutes, 17 seconds Innovation, smart manufacturing, strong relationship with the partner, effective 7:24 7 minutes, 24 seconds customer service and deeper reach across the country. Company happy to announce that new product segment in window and 7:32 7 minutes, 32 seconds road division in UP has gone into production effective first 2026. 7:40 7 minutes, 40 seconds The product is by the market company expect to sell the capacity by next year. It should also enable it to expand capacity at the same site. 7:51 7 minutes, 51 seconds The company's consumer and packaging business delivered stable to encouraging performance with targeted product 7:59 7 minutes, 59 seconds innovation, customer diversification and focus on value added offering. Industry 8:05 8 minutes, 5 seconds segment however continue to witness demand slowdown from OEM customers. 8:12 8 minutes, 12 seconds Export performance witnessed moderation due to geopodical development and related disruption. However, the company 8:21 8 minutes, 21 seconds remain optimistic and making focus effort to boost export of company product to a emerging opportunity with 8:29 8 minutes, 29 seconds many future agreement already signed by India and some are in progress which should enable the country to boost export of manufactured goods. 8:40 8 minutes, 40 seconds Looking ahead, the Indian economy remains well positioned for sustained growth driven by domestic adoption, institute development and poly support. 8:52 8 minutes, 52 seconds With a strong balance sheet, zero debt, expanding manufacturing base, technology leadership and diversified business 9:00 9 minutes model, the company confident of delivering improved performance in the coming year and creating long-term value for all stakeholder. 9:11 9 minutes, 11 seconds This is a brief and overall survey for the quarter and year, month end reference. Thank you for your patience. 9:20 9 minutes, 20 seconds Now I and my colleague Sani and Su are available to reply to your various 9:26 9 minutes, 26 seconds queries by all of you. Thank you very much. 9:31 9 minutes, 31 seconds Thank you very much sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may enter star 9:40 9 minutes, 40 seconds followed by one on the touchdown telephones. If you wish to remove yourself from the queue, you may enter star and two. Participants are requested 9:48 9 minutes, 48 seconds to please use only handsets while asking a question. We will wait for a moment while the queue assembles. 9:56 9 minutes, 56 seconds Question. 9:58 9 minutes, 58 seconds The first question is from the line of Rahul Aar Agarwal from Iky Asset. Please go ahead. 10:04 10 minutes, 4 seconds Hi sir, good evening. Uh thank you for the opportunity. Uh so first question is first question is on the uh on the 10:12 10 minutes, 12 seconds inventory gain uh which we would have had in March uh because of higher PVC pricing. 10:18 10 minutes, 18 seconds Could you help with the number for the fourth quarter or for the full year whichever you have full year in quarter inventory loss? 10:30 10 minutes, 30 seconds Yes sir I'm aware of that. So for no we don't see any gain for full year 10:39 10 minutes, 39 seconds but in first quarter there may be inventing net to net maybe around 70 to 82. 10:47 10 minutes, 47 seconds Okay sir, got that. And uh sir, second and last question was on capex. uh you have detailed uh in the press series about the capex but any plans on the 10:55 10 minutes, 55 seconds packaging side where you think you should expand capacity for packaging side we purchase a land at 11:03 11 minutes, 3 seconds JMP going on the land comes in our position 11:13 11 minutes, 13 seconds then we announce putting a facility to make packaging product India must be marked for market. 11:24 11 minutes, 24 seconds So how much would be the cap today? What kind of capacity we think we should let the land come in our hand then we'll talk to you. 11:34 11 minutes, 34 seconds All right sir. Last question sir. What is what are the growth for CPVC pipes and last year we grow around 28%. 11:45 11 minutes, 45 seconds Thank you so much sir and wish you all the best for the next year. 11:49 11 minutes, 49 seconds Thank you. The next question is from the line of Shahanch Sha from Dollar Capital. Please go ahead. Uh 11:56 11 minutes, 56 seconds hi sir. Uh thank you. Uh sir now how are we looking at the uh overall volume and 12:03 12 minutes, 3 seconds piping volume for FI27 volume 12:17 12 minutes, 17 seconds 15 to 17%. 15 to 17% in piping and overall 12% 12 to 13 12 to 13%. 12:28 12 minutes, 28 seconds 12 to 14%. And uh uh for margin sir how now we look at the margins between 14 to 14 and a half%. 12:38 12 minutes, 38 seconds 14 and a half%. Okay. 12:41 12 minutes, 41 seconds 14 to 14 and half 14 and a half sir. 14 to 14 and a half. 12:48 12 minutes, 48 seconds Okay. 13 to 14 and a half. Okay, got it. 12:51 12 minutes, 51 seconds Sir, now given the PVC prices so much volatility that we have seen 47 48 12:58 12 minutes, 58 seconds rupees off in the January to March and then again 32 33 rupees down. So how one 13:05 13 minutes, 5 seconds can can look at do we still see the volatility to continue or now it seems to be stabilizing and now uh in last 10 13:14 13 minutes, 14 seconds 15 days how how are we seeing the channel inventory or the demand because such a volatility is there how it is impacting the demand 13:23 13 minutes, 23 seconds polymer prices they remain volatile not new situation 13:30 13 minutes, 30 seconds was typically too much remains always volatility steady price throughout the year never 13:38 13 minutes, 38 seconds remain and now the prices have come down quite 13:45 13 minutes, 45 seconds a lot between 5th April to 21st April the price come down by 34 rupees that is 13:52 13 minutes, 52 seconds 30% price went down but prior to that in the month of March the price went up by 32%. 14:00 14 minutes So that price increase in the month of April. Now the inventory also 14:07 14 minutes, 7 seconds distributed level are mostly clear. So we do not anticipate now any 14:14 14 minutes, 14 seconds direction also because rupees getting weaker rupees around 94 and half. So our rupee become we are too much import 14:23 14 minutes, 23 seconds dependent. So we do not see any cash erosion now in the previous price for time. 14:30 14 minutes, 30 seconds Got it. Got it sir. And lastly sir this 1 lakh 10,000 capacity that we are adding uh out of that how much will be 14:38 14 minutes, 38 seconds in the parking segment and uh this entire 1 lakh 10,000 will be added by fi 27 added by condition for sure. 14:51 14 minutes, 51 seconds Okay. and and 100,000 will be in piping sector only. 14:58 14 minutes, 58 seconds Okay. The entire would be in the in the piping you are saying 100,000 piping sector 10,000 will be mostly in machine learning system. 15:07 15 minutes, 7 seconds Okay. Okay. Okay. Got it. Got it sir. 15:10 15 minutes, 10 seconds And and and uh uh uh lastly in terms of the uh for this Q1 particularly 15:17 15 minutes, 17 seconds specifically do we see any any inventory gain or loss? 15:27 15 minutes, 27 seconds How can they be? 15:31 15 minutes, 31 seconds Yeah. Yeah, I I understand. But because the the previous dropping in 15:40 15 minutes, 40 seconds Got it. Got it, sir. Thank you and all the best, sir. 15:44 15 minutes, 44 seconds Thank you. Our next question is from the line of Kesha Blahi from HDFC Securities. Please go ahead. 15:54 15 minutes, 54 seconds Hello. Hi. Thanks for the opportunity. 15:58 15 minutes, 58 seconds So my first question is if you can in the bifircate in due the Q4 volume growth we believe you know channel 16:04 16 minutes, 4 seconds inventory has improved in Q4. So possibly what would be the growth because of end demand and because of channeling 16:13 16 minutes, 13 seconds I don't know it's not physible to justify it more 16:19 16 minutes, 19 seconds than 50,000 we don't know okay 16:28 16 minutes, 28 seconds tell me hello am I audible yeah we audible yeah one last question from my side Can 16:37 16 minutes, 37 seconds you give a sense on how you know channel inventory has moved in few quarter month wise and lastly how is the channel 16:44 16 minutes, 44 seconds inventory now we have no idea no idea different 16:52 16 minutes, 52 seconds okay got thank you thank you the next question is from the line of Pravin Sahai PL Capital please 17:00 17 minutes go ahead yeah hi thank you for opportunity my first question is related to the demand And uh especially for the agree as uh we 17:09 17 minutes, 9 seconds had seen lot of a fluctuation in the PVC racing prices and we also understand the Q4 and Q1 is uh where the agree demand 17:17 17 minutes, 17 seconds comes in. So do you see any uh you know uh impact on the agree demand especially because of a PVP price fluctuation in the Q4. 17:28 17 minutes, 28 seconds Now Q4 demand start only from Q1. Q4 demand was impacted in the month of 17:34 17 minutes, 34 seconds March but now Q1 now we Q1 only now demanded full full force there's no 17:42 17 minutes, 42 seconds issue big demand now coming from segment so with the price correction demand has 17:49 17 minutes, 49 seconds picked up in the agree price have come down very low and sector they don't keep inventory norally they 17:57 17 minutes, 57 seconds don't keep so now the price are quite low a demise come very dish. 18:05 18 minutes, 5 seconds Okay. And uh also with these uh fluctuation in the PVC racing prices, have you seen any impact on the plumbing 18:13 18 minutes, 13 seconds especially uh some delay from the builder side or the project side of business in the Q4? 18:19 18 minutes, 19 seconds You can't complete building without plumbing. 18:25 18 minutes, 25 seconds Okay. Uh one clarification on the uh no demand restriction from the user there no demand restriction. 18:38 18 minutes, 38 seconds Okay. Okay sir. And uh one clarification on your uh 38% of y growth in the CPVC. 18:46 18 minutes, 46 seconds Is that of a volume or a value? No volume. Value we don't know. 18:53 18 minutes, 53 seconds This is a volume growth in the CBDC. Yeah. for a full year. 18:58 18 minutes, 58 seconds For a full year and uh can you give any indication how much is a contribute to our uh total piping business? 19:07 19 minutes, 7 seconds No idea. Thank you sir and all the best. 19:13 19 minutes, 13 seconds Thank you. Uh participants it's a request please limit your questions to two questions per participant. The next question is from the line of SHA from Nama. Please go ahead. 19:25 19 minutes, 25 seconds Thanks for the opportunity. Just couple of questions from my end. What would have been the industry group in FI26? So any number there or maybe even Q4 would be helpful. 19:35 19 minutes, 35 seconds Piping system we are told by producer thereus 9%. 19:43 19 minutes, 43 seconds 9% by 96 growth f by 26 there is a volume degrow by 9% in plastic piping system in a country. 19:54 19 minutes, 54 seconds Wow. Wow. That's it. How are things looking up from here? Anything from polymer uh suppliers or you all say that 20:03 20 minutes, 3 seconds you know how is industry likely to grow in FX27 and any uptake that you seen in n 20:11 20 minutes, 11 seconds your question not clear to me. What did you ask? What's the kind of growth at an industry level that we're expecting in 20:18 20 minutes, 18 seconds FI27 and any uptake that you've seen in nursing because there were very recently some need 20:31 20 minutes, 31 seconds growth this year. 20:35 20 minutes, 35 seconds Anything sir? Recently there were allocations. Have we seen any pick up or government spending starting to take place? Any fund releases? 20:45 20 minutes, 45 seconds No no no as of now we don't see any update on that you see this depends upon the state and central government cooperation 20:54 20 minutes, 54 seconds so can depend on the state supporting state 21:00 21 minutes to contribute also unless the state money so we are not sure up till now it 21:08 21 minutes, 8 seconds never happened as the declared policy of the government of India central government last two years also whatever 21:15 21 minutes, 15 seconds budget they announced in February 1st February they could spend only one third 21:21 21 minutes, 21 seconds amount so we are not sure this year also I didn't ask me 21:28 21 minutes, 28 seconds I'm sorry ma'am can we ask you to return to the question from the other participants waiting thank you the next question is from the line of 21:36 21 minutes, 36 seconds Sonali from Jeff please go ahead thank you for the opportunity and congratulations on a good setup of numbers. So my question is about the 21:44 21 minutes, 44 seconds Middle East impact on the polymers. You did mention in your press release that you know the impact on polytheine products is much higher as compared to 21:53 21 minutes, 53 seconds PVC but just wanted to understand the broader dynamics of demand supply globally as to what in your view can be 22:00 22 minutes impacted more and what impact can trickle down to Supreme's product or supply because of that. 22:09 22 minutes, 9 seconds Now will be all the polymers they not only making polymer they are 22:18 22 minutes, 18 seconds also supplying food store for the polymer to the plant based in Parish Asia Southeast Asia 22:26 22 minutes, 26 seconds the areffected so we going to impact the 22:34 22 minutes, 34 seconds capacity worldwide big So if that is the case in your best 22:42 22 minutes, 42 seconds understanding why are the PVC prices going down right now? Is it because that the government of India you know revoked 22:51 22 minutes, 51 seconds the import duty for a period of 3 months or is it because globally the supply of PVC has increased over the past 1 month. 23:01 23 minutes, 1 second becoming zero doesn't improve the volume of production. 23:05 23 minutes, 5 seconds That's right. I'm asking of PVC resin prices. 23:09 23 minutes, 9 seconds The point is that PVC is not so much expected as huge volume is coming from China and China production is not based 23:19 23 minutes, 19 seconds on their manufactur. 23:31 23 minutes, 31 seconds So China has become big China was a big player in India. Now they become bigger players. So because of that TVC is not reflected in India. 23:42 23 minutes, 42 seconds They are getting big supply from China. 23:45 23 minutes, 45 seconds So you foresee the prices of PVC to go down further like we have seen in the past two weeks. Is that understanding? 23:52 23 minutes, 52 seconds Not go up very much to go up but we will not go up the way the usually gone up. 24:01 24 minutes, 1 second Understood. Got it. Very helpful. Thank you sir. 24:05 24 minutes, 5 seconds Thank you. The next question is from the line of pages Pradhan from Cityroup. Please go ahead. 24:12 24 minutes, 12 seconds Yeah. Hi sir. Uh so just on the notes to accounts the note number six you have mentioned the change in labor code 24:19 24 minutes, 19 seconds provisioning. Uh I noticed that last quarter it was mentioned that 15.38 cr is the provisioning and in this quarter 24:27 24 minutes, 27 seconds it is mentioned as 14.4 cr. So just wanted to clarify if this is in addition 24:33 24 minutes, 33 seconds to the 15.38 cr that was provided in the third quarter or is there any sort of uh 24:40 24 minutes, 40 seconds revaluation of uh the provision and uh the net fullear impact is now 14.4 four crops 24:48 24 minutes, 48 seconds correct is a net full year impact earlier in the Q3 we've estimated based on our working but based on the actual 24:57 24 minutes, 57 seconds valution report which we have made now March 26 it is a full year impact so 15.38 reduced to 14.4 four. 25:07 25 minutes, 7 seconds Okay, understood. Uh thanks. And uh on secondly on the industry, I mean would you be able to like for uh supreme uh 25:15 25 minutes, 15 seconds industries, would you be able to sort of break up the volume trends that we saw in this quarter between uh Jan and Feb 25:23 25 minutes, 23 seconds and how the trends were in March and if you can uh maybe extend that to April as well. I mean between these three periods 25:31 25 minutes, 31 seconds uh how how were the trends for both us and the industry? 25:37 25 minutes, 37 seconds You told me the group told you month we don't declare or we don't discuss it's on quarter we always 25:45 25 minutes, 45 seconds give the data yet 25:53 25 minutes, 53 seconds to grow 15 to 17% business we wanted 26:04 26 minutes, 4 seconds anyway we do not give one to one figure also Sure. Sure. Any qualitative sense would have also been great. But I mean 26:11 26 minutes, 11 seconds depending on what you uh want to discuss. Yeah. 26:18 26 minutes, 18 seconds No, as you know the year began with the still the geopolitical conflict continued. 26:24 26 minutes, 24 seconds So really you can't think of a better things today. But yes, let us hope for the better situation to come. 26:32 26 minutes, 32 seconds Sure. Sure. Thanks a lot. 26:34 26 minutes, 34 seconds Thank you. The next question is from the line of Bhavin Rupani from Invest. Please go ahead. 26:42 26 minutes, 42 seconds Uh yeah. Hi sir. Uh thanks for the opportunity. Uh so first question is related to sir PVC. So uh what is our 26:49 26 minutes, 49 seconds average procurement cost of PBC which is standing as inventory as on 31st March. 26:58 26 minutes, 58 seconds much inventory requirement cost of the inventory what is you are carrying inventory cost you see these 27:06 27 minutes, 6 seconds are the classified information we don't really disclose those kind of things 27:14 27 minutes, 14 seconds all right so so in terms of days what would be the number of days of PVC inventory do we have on 31st March 27:22 27 minutes, 22 seconds we must give the plant the plant should go running local and import both local adequate. 27:32 27 minutes, 32 seconds So import local you can get also but important 27:43 27 minutes, 43 seconds decision should not be short of raw material 27:51 27 minutes, 51 seconds available India import 68% requirement 32% only supply locally 27:59 27 minutes, 59 seconds so when double the requirement met from importity of China. So you have to keep always inventory in 28:07 28 minutes, 7 seconds plant or warehouse so that your we are responsible supplier. So we never failing you supply to our customers. 28:17 28 minutes, 17 seconds So we won't take it sir. Sir this second question on vin 28:28 28 minutes, 28 seconds sir what would be our volumes from v during the quarter 28:36 28 minutes, 36 seconds we buy capacity 70 and we anticipate that overall we willing 70% of our 28:43 28 minutes, 43 seconds capacity so we around 48 49,000 t in our business volume this year 28:50 28 minutes, 50 seconds and bin plants are running normally from February onwards see this year three four because it took time to revamp and refurbish everything. 28:59 28 minutes, 59 seconds So on February they in normal path. 29:04 29 minutes, 4 seconds So what is the contribution in terms of volume? 29:06 29 minutes, 6 seconds Could you come return to the queue? Pava could you return to the queue please? 29:10 29 minutes, 10 seconds This is just a followup. This is just a followup. 29:16 29 minutes, 16 seconds So about 4,000 a month and from February March if you look at so for the quarter it could be around 10,000 tons. 29:28 29 minutes, 28 seconds Got it sir. Sure. Thank you. 29:30 29 minutes, 30 seconds Thank you. The next question is from the line of Girish Chi from Aventus Park. Please go ahead. 29:36 29 minutes, 36 seconds Yeah. Hi uh good evening. Thanks for the opportunity. Uh firstly if you could if you could give us some uh uh insights on 29:44 29 minutes, 44 seconds on the competitive dynamics especially after the war where we have seen significant volatility in in the raisin prices. Did we see accelerated market 29:52 29 minutes, 52 seconds share gains? Uh and and uh now that the resin prices have reversed, are the small and mid uh manufacturers coming back strongly into the market. 30:12 30 minutes, 12 seconds Okay. 30:15 30 minutes, 15 seconds Uh in in terms of the raw material availability uh challenges uh uh did you hear anything about the small 30:22 30 minutes, 22 seconds manufacturers uh facing some issues and we are not 30:31 30 minutes, 31 seconds aware that anybody not getting available. 30:39 30 minutes, 39 seconds Uh okay so my second question is on the uh the Windows business. So if you could give us some sense on uh what kind of 30:47 30 minutes, 47 seconds revenues we can expect uh in the next uh one year and uh the margins as well 30:54 30 minutes, 54 seconds window and full cap how many can once we achieve full capacity 31:02 31 minutes, 2 seconds then it should be about 200 to 250 annual revenue 31:08 31 minutes, 8 seconds around 250 annual revenue. We have pretty small capacity. So we may get 250 rupees revenue annually when we start running the plant. 31:20 31 minutes, 20 seconds Okay. And can we assume similar margin for for this business as well? 31:32 31 minutes, 32 seconds We invested more than 200 in business. 31:36 31 minutes, 36 seconds So Majment thank you sir. 31:48 31 minutes, 48 seconds Thank you. Our next question is from the line of Duresh Shukla from Incred. Please go ahead. 31:59 31 minutes, 59 seconds Hello. Yeah. Hello sir. Thank you for the opportunity. Uh actually my question was similar to that uh labor law code 32:07 32 minutes, 7 seconds provisions which has already been answered. So thank no more from myself. Sure. Thank you. Thank you. 32:14 32 minutes, 14 seconds The next question is from Shabbam Shukla from Voyager Capital. Please go ahead. Good evening everyone. Uh hi Mr. Shbam. 32:22 32 minutes, 22 seconds Uh I'm relatively new and currently trying to build a better understanding of this industry. I wanted to get a sense of the broad capacity utilization 32:31 32 minutes, 31 seconds scenario both for our company and the industry. From what I've observed, utilization levels seem to be largely in 32:38 32 minutes, 38 seconds the 60 70 ballpark range while capacity additions are still ongoing. I wanted to 32:44 32 minutes, 44 seconds ask what is the ideal utilization level and how do you define lower and high utilization bands both for company and more broadly for the industry. 32:57 32 minutes, 57 seconds Normally we can see if you are able to use 75% 33:05 33 minutes, 5 seconds come down always three months 33:18 33 minutes, 18 seconds depend on business you can say sometime we may not get 75% may not get 70% or 68% 33:25 33 minutes, 25 seconds something Okay. So 75 is the ceiling which we hit and it doesn't go up more than that. 33:33 33 minutes, 33 seconds Business condition are looking quite okay. If the rain only normal no 33:41 33 minutes, 41 seconds prolong then business will be affected. 33:49 33 minutes, 49 seconds Okay. All right. Thank you. 33:52 33 minutes, 52 seconds Thank you. The next question is from the line of Utkash Napani from Anantrai. Please go ahead. 33:59 33 minutes, 59 seconds Uh yeah. Hi, good evening sir. Uh so sir my first question is regarding the plastic pipe phase volume uh growth which you have reported for the March quarter. Sir 34:08 34 minutes, 8 seconds you have mentioned that the agree pipe demand got impacted in the month of March because the resin prices were falling and the demand for infraipe from 34:17 34 minutes, 17 seconds Jelan mission has not yet picked up. So uh just wanted to know what has uh led to such sharp growth uh uh uh for us in 34:25 34 minutes, 25 seconds the March quarter. Is it because of the China March demand is finely 34:37 34 minutes, 37 seconds the farmer to buy the goods in the month of March. Now the price come down. So now the demand is normal 34:47 34 minutes, 47 seconds by 37 a kilo and then came down by 33 a kilo 34:54 34 minutes, 54 seconds now normal no issue. No sir for the March what I wanted to know sir was it majorly driven 35:02 35 minutes, 2 seconds by the plumbing pipe and is it because of the channel refilling or we are seeing a strong uh growth for the plumbing pipe demand 35:11 35 minutes, 11 seconds is normally only demand for starting big way start 35:18 35 minutes, 18 seconds only after the crops are harvested that happen around 8th or 10th of April then demand comes up fully 35:26 35 minutes, 26 seconds okay and so Whether the plumbing pipe demand was coming from across the region or was it from any particular region like rural or urban? If you can throw 35:35 35 minutes, 35 seconds some light over here in the country who build the house they require the plumbing. 35:41 35 minutes, 41 seconds People build house in big building up to cities houses. 35:54 35 minutes, 54 seconds Okay. And sir lastly on the PVC resin price sir can you just specify what would be the current PVC resin price in the market right now and do you see any 36:02 36 minutes, 2 seconds further pressure in the PVC resin prices uh in near future 36:11 36 minutes, 11 seconds and we anticipate going down and will go up now. 36:19 36 minutes, 19 seconds Uh okay thanks a lot sir. 36:22 36 minutes, 22 seconds Thank you. The next question is from the line of Kumar Somia from Ambbitra Capital. Please go ahead. 36:29 36 minutes, 29 seconds Hi sir, good evening. So couple of questions from my side. Am I audible sir? I'm ready to please. 36:38 36 minutes, 38 seconds Yes sir. Uh so I just wanted to understand the raw material availability. You said PBC is abundant. 36:43 36 minutes, 43 seconds So how the situation on SDP side PP polyarene how are they currently available in the market? 36:52 36 minutes, 52 seconds All available in India. 36:55 36 minutes, 55 seconds Okay. We don't see any problem any material which is not available. 37:01 37 minutes, 1 second Got it. Got it. And secondly sir you said key the volume for for wavin is 37:08 37 minutes, 8 seconds about 10,000 tons since the plant started from February onwards. Uh so is it uh that the plant did not contribute 37:16 37 minutes, 16 seconds before that and this is the annual volume as well. annually get 50,000 from them 37:24 37 minutes, 24 seconds in FY 26. How much was that? 37:29 37 minutes, 29 seconds We just started the course in the month of August. Then we wereing so we get normal only from February. So we might 37:38 37 minutes, 38 seconds go 10,000 this quarter but now for the full year we anticipate we may get 48 to 50,000 this year. 37:49 37 minutes, 49 seconds Okay. Okay. So, thank you. That that was all from answer. I'll come back in. Thank you. 37:54 37 minutes, 54 seconds Thank you. Participants with questions may enter star followed by one on the handsets. The next question is from the 38:02 38 minutes, 2 seconds line of Rahul Agarwal from Asset. Please go ahead. 38:07 38 minutes, 7 seconds Thank you for the followup question. uh just referring to the other expenditure number in the quarter is 390 crores and 38:15 38 minutes, 15 seconds this number was similar in third quarter also despite 25% volume growth on Q basis just wanted to understand if there 38:24 38 minutes, 24 seconds is any oneoff onetime adjustment uh to this number no nothing specific 38:34 38 minutes, 34 seconds expenses excuse me sir uh this number generally in fourth quarter goes up because of you know higher volumes. So hence I was 38:43 38 minutes, 43 seconds wondering if there is any adjustment which is done on any this other expensive number consists of either repairs or the advance publicity 38:53 38 minutes, 53 seconds which was controlled right from quarter 3 itself when this year was not going well. So no inflation or no increase in those kind of figures. 39:04 39 minutes, 4 seconds Okay. So publicity was 125 crores last year. So it's basically flash Y what you're saying. No DC is 98. 39:15 39 minutes, 15 seconds Yeah. Okay. Call it sir. Thank you so much. Thank you. 39:20 39 minutes, 20 seconds Thank you. The next question is from Tarita from TSP mutual fund. Go ahead. 39:27 39 minutes, 27 seconds And uh thank you for the opportunity. Uh so I wanted some understanding on the depreciation. 39:34 39 minutes, 34 seconds uh we had already capitalized up to like the cash outflow when we see in the second half is roughly 566 crores due to 39:42 39 minutes, 42 seconds investments uh which was about 814 cr as of fi26 which is a 250 odd crores of 39:49 39 minutes, 49 seconds increase in the of capex but the depreciation to that extent seems to be very high the depreciation increase in 39:57 39 minutes, 57 seconds the second half seems to be very high uh what could be the reason behind this Now you have to see the last year 40:05 40 minutes, 5 seconds capital work in progress which was more than 400 crate also has good capital this year and our closing work progress is only 136 cr. 40:17 40 minutes, 17 seconds So when you look at you have to look at the because whatever payments have been made previous years 40:25 40 minutes, 25 seconds and the work in progress also get capitalized. 40:30 40 minutes, 30 seconds Got it. Okay. And then this year we believe it will further go up with the,000 odd crition 40:37 40 minutes, 37 seconds also separately right no even if I take into account wav the depreciation increase seems to be 40:45 40 minutes, 45 seconds higher than a normal like a usual number but total addition to assets is 1,400 cr this year 40:54 40 minutes, 54 seconds including what to the 1400 cr would also include 41:02 41 minutes, 2 seconds Yes, got it. Okay, great. And thank and fellow. 41:07 41 minutes, 7 seconds Thank you. The next question is from the line of Retesh Sha from Invest Capital. Please go ahead. 41:13 41 minutes, 13 seconds Yeah. Hi sir. Congratulations for good set of numbers sir. Few questions sir. 41:17 41 minutes, 17 seconds How should we understand PBC Resin prices? Uh resin made via carbide root and resin made uh resin which is made by ABC it mean root. 41:30 41 minutes, 30 seconds both they make they make PVC and PVC make the product so there's no difference for you 41:37 41 minutes, 37 seconds some PVC contain more than one% then people don't 41:45 41 minutes, 45 seconds good material for use of quality pipe majority of them make carbide 41:53 41 minutes, 53 seconds PVC it mean content less than 1% so less than 1% 42:00 42 minutes contain no issue compared to you don't see any problem. 42:09 42 minutes, 9 seconds Sure sir uh that helps produced by last more than three four decades in India. 42:17 42 minutes, 17 seconds Okay that that that is helpful. Uh sir, second is uh any update on uh our uh windows and profiles business. That is 42:26 42 minutes, 26 seconds one and secondly uh anything on the gas piping side. I think we did receive an order on electrofusion fittings from uh uh mra natural gas limited a while back. 42:39 42 minutes, 39 seconds So our modest business is actually doing sir started we started sharing in the month 42:46 42 minutes, 46 seconds of March already and gas pipe we not only supply the pipe we supply the fitting also we are the only company as 42:54 42 minutes, 54 seconds today who supply the pipe electro fitting required for caring pipe natural gas we got order from three gas 43:04 43 minutes, 4 seconds companies and more negotiation so that will meet the require requirement for carrying the pipe under the ground and above the ground. 43:14 43 minutes, 14 seconds We make aluminium opposite pipe that also we issue order that also will be the requirement of rendering the natural gas. 43:25 43 minutes, 25 seconds Uh sir, how big can this business be for us? The gas piping business we don't know how big the the company 43:34 43 minutes, 34 seconds will buy. We can't say complete. 43:43 43 minutes, 43 seconds Okay. How much is our sir? How much is our capacity over here? 43:50 43 minutes, 50 seconds We can make 10,000 per month actually but that is n plants. So depend on which 43:57 43 minutes, 57 seconds plant they will place order accordingly we may supply them. We can supply easily, th00and to monthly for location. 44:09 44 minutes, 9 seconds Okay. Uh and sir, Windows and profiles sir, have we launched it on a pania basis or is it only in a few states and 44:17 44 minutes, 17 seconds what is the capacity over here and how do we see this growing? Only Europe and NCR. Only Europe and NCR. Okay. 44:26 44 minutes, 26 seconds And sir, how much is our capacity over here? I think around 10,000 window per month. 44:34 44 minutes, 34 seconds Sure. Uh this is helpful sir. Thank you so much. Thank you. 44:38 44 minutes, 38 seconds Thank you. Participants with questions may enter star and one. Our next question is from the line of pranitici an individual investor. Please go ahead. 44:50 44 minutes, 50 seconds Uh hi uh thank you for the opportunity. 44:53 44 minutes, 53 seconds So I understand that you did a great performance. I was wondering in terms of consolidation of the market how have you seen the organization of the overall market and in terms of CPVC also I think 45:02 45 minutes, 2 seconds astral had very lofty goals in terms of dominating at a much higher rate but so could you explain how are you seeing astral yet entering CPVC and how is it 45:11 45 minutes, 11 seconds how are you facing competition on the ground was an organization of the market and how has expanded in the market 45:18 45 minutes, 18 seconds I I can many I don't follow what we want to ask 45:25 45 minutes, 25 seconds how much we have suppliers supplier supplier supplier 45:33 45 minutes, 33 seconds suppliers many sorry I think I didn't I was not clear the my question was about talking about the market share how are supreme role in 45:41 45 minutes, 41 seconds terms of it market share in its CPVC versus the other pricing divisions and do you what kind of market share we 45:49 45 minutes, 49 seconds don't know market share we don't know market share company in the CPC market we have no we don't know 45:58 45 minutes, 58 seconds what about other segments sir other than CPVC in the piping division maybe maybe 12 to 13%. 46:06 46 minutes, 6 seconds Uh do you have any goals in terms of expanding it from 13% mark to 20% let's say like what what is the company doing in terms of expanding the market share or we plan to grow? 46:17 46 minutes, 17 seconds Yeah, like what are the ideas internally that you have thought in terms of the which market share would you like to go to from the 13 levels today putting more 46:25 46 minutes, 25 seconds capacity go on making offering more system go on making more STU system go 46:33 46 minutes, 33 seconds on appointing distri market there are so many avenue do that 46:40 46 minutes, 40 seconds and we are working all the all those Yeah. 46:49 46 minutes, 49 seconds By let's say 2032 or 203 in next four years what kind of market share targets the management have today 46:57 46 minutes, 57 seconds we are working more now first how to increase our export business our export business plastic system only $5 million 47:06 47 minutes, 6 seconds we are working first how to reach $50 million very shortly so our top perform top focus today to 47:14 47 minutes, 14 seconds grow big way in export market and definitely grow a big way in Indian market also plastic piping system we 47:23 47 minutes, 23 seconds have put on a great part but in terms of exports like in terms of competition because the pipe is usually 47:31 47 minutes, 31 seconds mostly air it's like really volutric rather than weight won't it be difficult to compete in the market like what are the markets we're looking to compete in 47:40 47 minutes, 40 seconds I don't say pipe I say piping system okay so does it I mean only pipe which will be fitting also. 47:50 47 minutes, 50 seconds Okay. So in term So you're not interested in just pipes export you're interested in fittings part of it is it we both 47:58 47 minutes, 58 seconds okay so and which which geographies are we targeting sir today like in the short term like throughout the world 48:06 48 minutes, 6 seconds okay but like for the 500 million segment uh are we looking at middle east Africa like we looking further also no main market for us we want to put a 48:16 48 minutes, 16 seconds market also we are operating for many years Now we are working many part of the world let us secure then we come 48:25 48 minutes, 25 seconds back to you only 5 million what is nothing to talk so then we like competition so can we ask you to return to the 48:33 48 minutes, 33 seconds question Q sir yeah sure thank you thank you the next question is from the line of fatia from invest please go 48:41 48 minutes, 41 seconds ahead uh sir this question is specifically on null uh what we understand is there is a 48:48 48 minutes, 48 seconds c audit which is going on in a few states in the country. Uh sir, how do you read into this? Uh is that the 48:56 48 minutes, 56 seconds reason why you indicated nael will actually be slow or is there any other way to actually read it? actually 49:03 49 minutes, 3 seconds a citizen 49:25 49 minutes, 25 seconds that can be the reason. 49:27 49 minutes, 27 seconds Okay. Any other reason why the government is probably going slow? 49:33 49 minutes, 33 seconds No. Unless state government participate and they release their part of contribution, the central government is not releasing 49:40 49 minutes, 40 seconds the funds. So still we don't see the funds coming into the ground. 49:48 49 minutes, 48 seconds We are a small player in the water supply stream. But as you aware last two years government 49:57 49 minutes, 57 seconds budget was moved to this parliament they announced 67,000 cr expenditure and for 50:04 50 minutes, 4 seconds last two year every year 67,000 they announced and they spend only 22,000 cr. 50:10 50 minutes, 10 seconds So the question to our mind is because the state government to make their share 50:18 50 minutes, 18 seconds which state government is the money. 50:25 50 minutes, 25 seconds Okay. Uh sir just for understanding if earlier the project was 100 rupees how much was the contribution from the central government? 50:34 50 minutes, 34 seconds We have we have no idea. You can check me central government dear friend. Okay sir, thank you. Thank you so much. 50:43 50 minutes, 43 seconds Thank you. The next question is from Bhavin Whitlani from SBI mutual fund. Please go ahead. 50:50 50 minutes, 50 seconds Yeah, good evening and congratulations for a good set of numbers. Uh so question is on like you've added five manufacturing facilities over the last 50:58 50 minutes, 58 seconds uh 12 months. Uh so you added five manufacturing plants over the last uh one year. Uh could you talk about the uh 51:09 51 minutes, 9 seconds how closer you've got in terms of customers and the lead distance reduction uh that you've been able to get because 51:16 51 minutes, 16 seconds of these new plants? And uh is there a uh numerical number in terms of savings 51:24 51 minutes, 24 seconds that on the logistics cost that you've been able to get uh because of the new manufacturing facilities where you move closer to the customer? 51:34 51 minutes, 34 seconds very good with the customers customer go down. 51:45 51 minutes, 45 seconds Uh so is there a savings that uh numbers in terms of percentage that you've been able to get by moving closer to the 51:53 51 minutes, 53 seconds customer one or 2% saving that you've been able to get on the logistics idea better service to a customer. 52:05 52 minutes, 5 seconds So it becomes more affordable to the customer. 52:08 52 minutes, 8 seconds We are not taking a se into our account but we are becoming more competitive and more efficient. 52:17 52 minutes, 17 seconds Sure. Uh so uh the second part is you've added more SKUs as you mentioned. There are some wide spaces that you said that 52:24 52 minutes, 24 seconds you've been able to uh close that. uh could you talk about uh the number of SKUs you've added and some of the wide 52:32 52 minutes, 32 seconds spaces which were there in terms of uh that those products were not there you've been able to introduce this year 52:40 52 minutes, 40 seconds we were 15,600 plus some SKU and we were 45 system 52:47 52 minutes, 47 seconds we are going more and more SKU in this 45 system and we are going to more 52:54 52 minutes, 54 seconds system this year Correct. Uh was there any gap that 53:04 53 minutes, 4 seconds because some of the checks that we do we understand that highrises uh uh is an area where there was some gap in 53:11 53 minutes, 11 seconds products. Uh have you you've been able to close those product gaps? 53:16 53 minutes, 16 seconds We don't have any gap now. Nothing. No gap. Okay. system. 53:23 53 minutes, 23 seconds Uh uh now when you compare Supreme with Vav and Astral and specifically in the CPVC segment or Rashidual uh which areas 53:33 53 minutes, 33 seconds have you identified where there are spaces now and that you've been working to close those gap. 53:41 53 minutes, 41 seconds There are so many available huge country. 53:53 53 minutes, 53 seconds All right. This last part is so you've been able to on a long period average you've been able to grow around 13%. Uh 54:00 54 minutes so if one looks at the year going ahead uh in your view what's the kind of volume growth uh that you believe we 54:08 54 minutes, 8 seconds should be able to uh achieve uh and we understand there have been uncertaintities which always have been 54:17 54 minutes, 17 seconds no uncertainty we look forward to achieve 2 million okay in the current financial year 54:24 54 minutes, 24 seconds no finally what your dream is to 2 million t. Okay. 54:33 54 minutes, 33 seconds So, a long way to go. 54:36 54 minutes, 36 seconds Understand sir. Uh and on a profitability basis, what in your view is a sustainable uh EBITA or EBIT margin 54:45 54 minutes, 45 seconds that you see is uh is of that one should look at on a sustainable basis. We understand some quarter there are 54:53 54 minutes, 53 seconds inventory losses, some quarter inventory gains. But if one irons that out what's the sustainable level that one should expect 55:02 55 minutes, 2 seconds return more than 25% on the capital employed so we are earning more than 25% 55:11 55 minutes, 11 seconds year after year for last 18 years 18 years we are seeing that our return 55:19 55 minutes, 19 seconds on average capital improve more than 25% that only criteria we we follow in our Understand? 55:28 55 minutes, 28 seconds Sure. Yeah. So those were my questions. Thank you so much. Thank you. 55:32 55 minutes, 32 seconds Thank you. The next question is from the line of VUN from 361 Capital. Please go ahead. 55:39 55 minutes, 39 seconds Yeah. Hi sir. Thank you for the opportunity. I just want to check by when will the Greenfield project uh be operational? 55:47 55 minutes, 47 seconds Greenfield project. No no we have to yet to start the work. 55:51 55 minutes, 51 seconds Yeah. By then all the four plants what we are now talking should be operation by end of 55:59 55 minutes, 59 seconds March 27 not fully partic full two years now in our hand. 56:10 56 minutes, 10 seconds So it will be some capacity will be available this year and fully ready in next two years. 56:19 56 minutes, 19 seconds Okay. And so on the realization front uh since last year uh you know the PVP price on an average for the full year 56:27 56 minutes, 27 seconds was less than around 70 rupees per kg and now expectation is slightly higher right I mean 75 to 80 rupees then u is 56:35 56 minutes, 35 seconds it possible that there will be better margin expansion than what we have guided around 14 14 and a half% because our realization will be better going 56:44 56 minutes, 44 seconds forward we don't we make sh also we make policy And also we make 56:52 56 minutes, 52 seconds also so we 14 and a half% margin which gives return 56:58 56 minutes, 58 seconds in excess of 25% of capital impact sustainable we we work on sustainable business 57:07 57 minutes, 7 seconds earn 25% of the money what we invest any 57:14 57 minutes, 14 seconds 25% we go So, so on the PVP segment like I mean like price classic segment like overall 57:23 57 minutes, 23 seconds what is the realization that we aim suppose as PVP you know kind of stabilize around 75 rupees per kg like 57:29 57 minutes, 29 seconds is there any kind of like value there are several product in PVC also 57:36 57 minutes, 36 seconds every different margin basis based on the inve What we have made to make that product there were several type of 57:46 57 minutes, 46 seconds company several application also. So there's no fix formula. 57:54 57 minutes, 54 seconds It depend on the money what we invest. 58:04 58 minutes, 4 seconds Okay. Okay. So thank you. Thanks. That's it. 58:08 58 minutes, 8 seconds Thank you. Our last question is from the line of Karan Bhalia from Amsk. Please go ahead. 58:14 58 minutes, 14 seconds Hello. Hi sir. Am I audible? Yeah please. Hello. 58:19 58 minutes, 19 seconds Yeah. Uh sir you mentioned that the the PVC volume decline for the entire year was 9% for FI26 you know can we further 58:28 58 minutes, 28 seconds uh get into decline for intra agri and plumbing uh the industry level 58:35 58 minutes, 35 seconds our company I said the country has declined not I said plastic piping business deg 58:49 58 minutes, 49 seconds can supply We don't right right 58:59 58 minutes, 59 seconds and you mention of 15 to 17% volume growth in piping so that includes vin as well right yes 59:14 59 minutes, 14 seconds of industries right and one last question we had some outstanding know 14 million kind of 59:22 59 minutes, 22 seconds rupees spending from the JJ mission. So are we yet to recover that? Many recovered. 59:29 59 minutes, 29 seconds Okay. Okay. Thank you. Thank you. That's it from my hand. 59:32 59 minutes, 32 seconds Thank you ladies and gentlemen. That was the last question. I now hand the conference over to the management for closing comments. 59:40 59 minutes, 40 seconds We are very thankful to very intelligent question and we thank very much dam capital for providing 59:49 59 minutes, 49 seconds support and assistant to us and very much thankful to Mr. Ashim also. Thank you very much sir. Thank you. 59:55 59 minutes, 55 seconds Thank you on behalf of Dam Capital Advisors Limited. That concludes this conference call. Thank you all for joining us and we may now disconnect your lines. Thank you. And two.