V Guard Industries Limited — Q4 FY26

V Guard Industries Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=REe-ZlTyP1E Published: 1 day ago

0:00 Ladies and gentlemen, good day and welcome to the VGA Q4 NFY26 earnings conference call hosted by Invest Capital 0:09 9 seconds Service Private Limited. As a reminder, all participant lines will be in the listenonly mode and there will be an opportunity for you to ask questions 0:16 16 seconds after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on 0:24 24 seconds your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Vinit 0:31 31 seconds Prasad from Invest Capital. Thank you and over to you sir. 0:37 37 seconds Thank you. Uh good evening everyone. A warm welcome on behalf of Invest India to Q4 FI26 earnings call of VGA Industry 0:46 46 seconds Limited. We have with us the senior management team of VGA represented by Mr. Mitun Chitlapi managing director. 0:54 54 seconds Mr. Ram Chandran, director and chief operating officer. Mr. Sudarin Kaswari, senior vice president and chief 1:03 1 minute, 3 seconds financial officer. Now I'll hand over the call to the senior management for the initial remarks post which we'll be open. We'll open the floor for Q&A. 1:11 1 minute, 11 seconds Thank you. Over to you sir. 1:14 1 minute, 14 seconds Thank you uh Vinit and the investor team for hosting today's call. A very warm welcome to everyone joining us today to discuss the company's operating and 1:23 1 minute, 23 seconds financial performance for the fourth quarter of FY26. I trust that all of you had the opportunity to review the investor presentation shared earlier. We 1:32 1 minute, 32 seconds delivered a robust performance in Q4 marked by strong growth in both revenue and profitability. on a consolidated 1:38 1 minute, 38 seconds revenue for Q4 FI26 stood at,755 cr a ywide increase of 14.1% for the 1:46 1 minute, 46 seconds full uh 14% for the full year we achieved a topline growth of 7% with almost all growth coming from the second 1:54 1 minute, 54 seconds half the electronic segment comprising of stabilizers up systems inverters and batteries delivered a strong growth of 2:02 2 minutes, 2 seconds 22.3% yi all categories delivered growth during the quarter The electrical segment, which is our largest revenue 2:09 2 minutes, 9 seconds contributor and includes wires, pumps, switch gears, and modular switches, registered a Yi growth of 15.9%. 2:16 2 minutes, 16 seconds And the consumer durable segment covering fans, water heaters, kitchen appliances, and air coolers. We reported a 4.1% YI revenue growth. Fans and air 2:26 2 minutes, 26 seconds coolers witnessed a decline while water heaters and kitchen categories grew strongly. Sunflame reported a Yi topline 2:33 2 minutes, 33 seconds growth of 8.6% in Q4. The slowdown in the CSD business continues but the non-CSD business grew by about 16%. The 2:41 2 minutes, 41 seconds GTM integration has been completed and the business is experiencing strong attraction. Sunflame reported 2:49 2 minutes, 49 seconds sorry yeah in Q4 FI26 the revenue from south markets grew by 16 to 16.2% while non south markets grew at 11.8% YI for 2:58 2 minutes, 58 seconds the full year non-S south market contribution is at 48%. 3:04 3 minutes, 4 seconds The gross margin remains healthy. We have maintained gross margins at 35.3% this quarter which is at similar levels 3:11 3 minutes, 11 seconds of Q4 of last year. This is on the back of significant improvements improvements achieved in the last 3 to 3:18 3 minutes, 18 seconds four years. EITA excluding other income for Q4 stood at 171 cr reflecting a Y growth of 19.3%. 3:28 3 minutes, 28 seconds For the full year we reported the EITA of 527 cr an increase of 2.6%. EITA margin for the full year was 8.8% compared to 9.2% previously. 3:42 3 minutes, 42 seconds Consol consolidated PAT for the quarter was 112 cr up 23% Y compared to PA of 91 3:49 3 minutes, 49 seconds crores in the previous uh year. For the full year, consolidated path was 308 cr 3:56 3 minutes, 56 seconds lower by 1.7% yi. In Q3, we recognized an exceptional one-off charge of 22 crores towards gravity and leave and 4:05 4 minutes, 5 seconds cashment arising out of the new labor code. Without this, the impact the underlying part growth for the full year would have been 3.6%. 4:13 4 minutes, 13 seconds Working capital management continues to be efficient leading to strong cash flow generation. We have a net cash of 231 cr 4:20 4 minutes, 20 seconds as on March 2026 as compared to 64 crores in the previous financial year. 4:26 4 minutes, 26 seconds Considering the financial performance and healthy cash position, the board of directors has recommended a final uh 4:33 4 minutes, 33 seconds dividend of 150% equating to 1.5 rupees per equity share. The West Asia war has created challenges in terms of commodity 4:42 4 minutes, 42 seconds inflation and supply uncertainties. So far we have navigated these challenges well which reflects the inherent 4:49 4 minutes, 49 seconds resilience of the business. We continue to monitor these risks and we have mechanisms in place to take appropriate 4:56 4 minutes, 56 seconds and timely actions. Overall FI26 was a challenging year with the first half experiencing weak summer and tippid 5:03 5 minutes, 3 seconds demand. The business performed much better in the second half with the momentum of Q4 and indications of a 5:10 5 minutes, 10 seconds supportive summer. We are hopeful for a strong start to FI27. With that, I conclude my opening comments and I would 5:18 5 minutes, 18 seconds like to thank Vinit and team at Investec for hosting this call and would like to request the moderator to open the floor for Q&A. Thank you. 5:29 5 minutes, 29 seconds Thank you very much sir. We will now begin the question and answer session. 5:34 5 minutes, 34 seconds Anyone who wishes to ask a question may press star and one on their touchstone telephone. 5:40 5 minutes, 40 seconds If you wish to withdraw yourself from the question queue, you may press star and two. 5:45 5 minutes, 45 seconds Participants are requested to use handset while asking a question. 5:50 5 minutes, 50 seconds Ladies and gentlemen, we'll wait for a moment while the question Q assembles. 6:01 6 minutes, 1 second First question is from the line of Anera Jooshi from ICIC Securities. Please go ahead. 6:07 6 minutes, 7 seconds Yeah. Uh thanks for the opportunity and congrats for uh great set of uh numbers. 6:14 6 minutes, 14 seconds Uh so in terms of u uh the price hikes if you can indicate because all commodity prices have increased materially. So what will be the uh price 6:23 6 minutes, 23 seconds hikes across segments or at the portfolio level aggregate and have we passed on the entire uh impact of 6:30 6 minutes, 30 seconds increase in cost to the um consumers or do we need another round of uh price hike and what will be the quantum? That 6:39 6 minutes, 39 seconds is question number one. Question number two, uh whether the kitchen appliances segment has now uh really come out of 6:47 6 minutes, 47 seconds the in a way uh bare phase and um now we should see pretty healthy growth in the segment uh considering the uh strong 6:56 6 minutes, 56 seconds numbers posted by uh Sunflame also. So uh how should we think about for FI27 for kitchen appliances as a category 7:05 7 minutes, 5 seconds itself and see uh how is the fan market shaping up post uh March because we had 7:12 7 minutes, 12 seconds uh understood that Kerala as a market had seen some amount of softness Kerala Karnataka so uh how are we looking at uh 7:21 7 minutes, 21 seconds the fan and cooler market post March yeah thanks yeah uh okay I'll take up the second 7:28 7 minutes, 28 seconds part which is on kitchen appliances. So yes, we do believe that there seems to be some uh I think the uh improvement in 7:36 7 minutes, 36 seconds demand for kitchen. So we are seeing traction both for Vard as well as Sunflame. Um and I think uh the GT business of Sunflame is growing well. 7:45 7 minutes, 45 seconds But we have also taken some actions in terms of business integration which is also helping. So we have more u boots on 7:53 7 minutes, 53 seconds the ground as far as selling sunfl is concerned and now sunflame has access to all the networks and capabilities of the 8:00 8 minutes sales system of vigard. So that's definitely helping that but yeah we do also believe that you know kitchen business is slowly coming out of the 8:07 8 minutes, 7 seconds woods after the lull which happened postco the third is part al okay now I'll go for the first part so uh price 8:16 8 minutes, 16 seconds hikes the quantum yeah okay uh yeah there's been some significant increases in input costs um across representative 8:24 8 minutes, 24 seconds categories it would typically we are seeing in a range of somewhere between 8 to 13% % kind of cost increase. 8:34 8 minutes, 34 seconds This has happened over a period of time and what that translates into is eventually when the high high cost 8:43 8 minutes, 43 seconds inventory comes in a 13% price hike would be required. Okay, at the moment prices are getting passed on. We've 8:50 8 minutes, 50 seconds probably landed about 75% of what price increases are required so far and that's something we will have to watch in future. 8:57 8 minutes, 57 seconds Yeah. So I think uh we have landed most of the pricing action and I think um most companies have announced and taken 9:04 9 minutes, 4 seconds pricing action and I think the balance 25% should happen as and when the high cost inventory start hitting the inward 9:12 9 minutes, 12 seconds you know uh in the month of May and June is what we feel um the third is on the fan uh so the fan business I think uh 9:21 9 minutes, 21 seconds you know fan business has degrone in Q4 I think uh I don't think it's been Kerala I think for us uh you the the 9:29 9 minutes, 29 seconds eastern markets especially the summer products have not grown in Q4. So the part of that is also pulling down fans. 9:38 9 minutes, 38 seconds Uh maybe in the south markets including Kerala fan would have been you know a flat flattish car number for Q4. Um 9:46 9 minutes, 46 seconds however uh po April the summer sales has been reasonably good uh in South India. Uh but we'll wait and see you know what happens for the full quarter. 9:56 9 minutes, 56 seconds Yeah. 9:58 9 minutes, 58 seconds Okay. Sure sir. Uh very helpful. Just one last question. Uh Vard had say high revenue salience from state of Kerala 10:06 10 minutes, 6 seconds and post the uh war in West Asia. We believe some of the remittances etc. 10:11 10 minutes, 11 seconds there might be some disturbances to uh that. So so there uh is possibility of 10:18 10 minutes, 18 seconds some impact on the overall economy at Kerala level. uh so how do we see that impacting uh let's say 527 because 10:27 10 minutes, 27 seconds probably so far there was no impact considering uh it's just 2 months only so so do you 10:34 10 minutes, 34 seconds see any impact and what will be the strategy to mitigate the impact if any yeah that's it okay so far we have not 10:42 10 minutes, 42 seconds seen any special impact uh you know in Kerala in fact uh the summer in Kerala has been pretty supportive so then 10:50 10 minutes, 50 seconds Kerala numbers are pretty uh Kerala today is not that large like it used to be. So it's about 15 16 odd 10:58 10 minutes, 58 seconds percent. So uh it may not impact the overall company uh you know that much as it used to do earlier. So so far we are 11:06 11 minutes, 6 seconds not seeing an impact. uh uh even when we talk to uh you know real estate companies uh they are actually seeing uh 11:14 11 minutes, 14 seconds still traction happening because uh we also will see some improvement in demand because uh people are evaluating to 11:23 11 minutes, 23 seconds relocate uh you know the only the earning members staying back in those countries and sending their families back home. So all these things are going 11:31 11 minutes, 31 seconds on but having said that uh Q1 is not about that Q1 is primarily going to be summer and Kerala as a state has done well uh as far as summer is concerned. 11:43 11 minutes, 43 seconds Okay sure sir uh many thanks very helpful. 11:49 11 minutes, 49 seconds Thank you participants to ask a question you may press star and one. 12:00 12 minutes Next question is from the line of Vinit Prasad from Investee. Please go ahead. 12:07 12 minutes, 7 seconds Uh hi sir sir I have a couple of questions. Uh one is uh from FI27 perspective uh how do you see demand 12:16 12 minutes, 16 seconds shaping up uh considering one uh the summer season uh number two possible uh 12:23 12 minutes, 23 seconds inflationary pressures uh and its impact on consumer sentiments. That's my first question. Um and second is from the next 12:32 12 minutes, 32 seconds uh couple of years perspective uh how do we see if margins trending um with given bulk of the investments in the new 12:41 12 minutes, 41 seconds capacity is already done uh ramp up as you speak is on its way. So if uh demand 12:48 12 minutes, 48 seconds momentum is conducive uh do you think we are uh heading towards double digit margin over the next uh year or two? 12:58 12 minutes, 58 seconds Yeah, I think uh if you look at F27 the uh you know we just completed one month uh and South India has done well. So 13:05 13 minutes, 5 seconds south the temperatures were warm uh in most parts uh and I think South India 13:12 13 minutes, 12 seconds the summer has started non south it is still uh you know uh it was raining in many parts of the uh geography but non 13:22 13 minutes, 22 seconds south also has a longer window at least till June 30th. So uh we are expecting the demand to pick up. The expectation 13:29 13 minutes, 29 seconds and the prediction from the uh IM IM IMD as well as Skyat and other agencies are 13:36 13 minutes, 36 seconds for a uh pretty warm summer. Uh so that is uh that is hopeful and South India it has already started and you know the the 13:45 13 minutes, 45 seconds numbers are pretty decent. Uh as far as the medium-term is concerned. Yes. So if you can see after even having a such a 13:54 13 minutes, 54 seconds adverse year you know we had a very bad Q1 and the first uh uh quarter in the current you know FI26 we have come back 14:02 14 minutes, 2 seconds strongly and our uh you know uh our H2 a beta is in the region of around 9 9.5%. 14:10 14 minutes, 10 seconds So we are already uh close to double digit uh numbers. Yes. Uh there are some concerns because the the the the cost 14:19 14 minutes, 19 seconds inflation is very high. Uh there across categories across raw materials prices 14:25 14 minutes, 25 seconds have gone up. Uh even metals uh you know the metal prices are also going up. So uh because we have to also understand 14:33 14 minutes, 33 seconds that West Asia also produces a lot of aluminium. uh they have a lot of aluminum smelters which are out of action now because of the blockade. So I 14:42 14 minutes, 42 seconds think uh we'll wait and see. Uh but I think the inflationary trend is uh pretty severe and uh we it is as as bad 14:51 14 minutes, 51 seconds or a little worse than the Ukraine war inflationary trend what we experienced. 14:56 14 minutes, 56 seconds But the good news is this time you know we are ahead of the curve in terms of pricing and if you see we our margins 15:03 15 minutes, 3 seconds are fairly you know protected uh in Q4 and we hope to do that but yeah if yeah but in the medium term I think yes. So 15:11 15 minutes, 11 seconds once this uh is over and the chrome prices come back to normal, we pretty confident of hitting uh double digit. 15:22 15 minutes, 22 seconds Yeah, we need Hello. Hello. Sorry. Uh sorry, 15:31 15 minutes, 31 seconds sorry, I was on mute. Um just follow up to the question or uh your your earlier response. What I understand is uh uh 15:40 15 minutes, 40 seconds this time around industry has been a lot more proactive and margins to that extent could could be could remain resilient. U has this been a case across 15:50 15 minutes, 50 seconds players where most players have taken price increases or it is us and couple of maybe the larger ones who've been proactive or it's the ind industry. 16:00 16 minutes Uh no, I think we have seen a pretty much broad-based reaction by the industry to increase prices. But in seasonal categories like summer 16:08 16 minutes, 8 seconds categories, uh you know, this action is getting delayed. For example, in South India, a lot of this pricing is getting 16:15 16 minutes, 15 seconds passed on whereas non south where summer is yet to start or is starting slowly, you know, some of it is getting uh slightly pushed. But I think the intent 16:23 16 minutes, 23 seconds is pretty strong. uh we are seeing this across because the quantum uh of price increases are high. This is not only 16:31 16 minutes, 31 seconds about price increase but in some cases there is genuine shortage of raw materials. So uh we are all scrambling to secure raw material supply. So you 16:40 16 minutes, 40 seconds could see uh you know some of the smaller players not even being able to produce uh you know products. So so we are we are in a state of supply shock. 16:50 16 minutes, 50 seconds uh and that's also another reason why you know uh there is uh there has been a very strong uh almost cohesive action by 16:58 16 minutes, 58 seconds all players uh to increase prices because and the quantum is very large so there's no way that uh none none you 17:05 17 minutes, 5 seconds know most almost all the categories the the the cost hike is I mean the the quantum is so large that you can't 17:12 17 minutes, 12 seconds absorb the shock understood understood thank you thank you so much thank 17:21 17 minutes, 21 seconds Thank you. Before we move to the next question, a reminder to the participants to ask a question, you may press star and one. 17:29 17 minutes, 29 seconds Next question is from the line of Rajna Kukraa from Sil Ventures. Please go ahead. 17:36 17 minutes, 36 seconds Uh thank you for the opportunity. My questions are on Sunflame. Uh my first question would be have we incurred most 17:43 17 minutes, 43 seconds of the transition and integration related cost for Sunflame and uh going forward what could be the expected benefits from these initiatives taken. 17:56 17 minutes, 56 seconds Okay Ram you want to take this on Sunflame integration. 18:00 18 minutes So I think Sunflame integration is uh progressing well. Uh we we you know uh 18:08 18 minutes, 8 seconds in functions like service and quality we are fairly we have fairly progressed with integration and uh we are seeing 18:17 18 minutes, 17 seconds results also. Uh there are improvements in cost uh and uh there is improvement in performance and uh uh customer 18:25 18 minutes, 25 seconds satisfaction. uh in sales uh I think you know the the uh the integration u uh you 18:33 18 minutes, 33 seconds know happened over November December and it's still underway uh we are seeing uh early results in terms of being able to 18:41 18 minutes, 41 seconds uh you know place you know sunflame into stronger counters where we enjoy um you 18:48 18 minutes, 48 seconds know uh traditionally good relationship so I think that's encouraging um on supply side you know in terms of 18:57 18 minutes, 57 seconds planning, sourcing. Yeah. Uh this integration has happened over last quarter. Yeah. In general, of course, there will be some uh you know benefits 19:05 19 minutes, 5 seconds in indirect costs uh warranty charges and um you know even um you know cost of quality. So those are areas where you know we expect to see some uh benefit. 19:17 19 minutes, 17 seconds um uh the most significant benefit will come uh you know from the uh sales integration and uh this is something 19:24 19 minutes, 24 seconds that uh we should uh expect over the next you know three quarters and uh into the subsequent year because I think the 19:32 19 minutes, 32 seconds initial benefit will come as we spread sampling uh into our network. uh but I think deeper benefits will come from 19:41 19 minutes, 41 seconds second half of uh this year you know as progressively our NPD pipeline starts to hit the market uh over the subsequent uh 19:49 19 minutes, 49 seconds three or four quarters. Yeah. So I think um progressively we should see uh better outcomes because the actions are 19:57 19 minutes, 57 seconds underway and uh we are already seeing these uh you know benefits in uh functional domains like service and 20:06 20 minutes, 6 seconds quality as I already spoke to you about or even uh warehousing and logistics. 20:18 20 minutes, 18 seconds Yeah, that's it. Next question. Hello. Yes. 20:26 20 minutes, 26 seconds Yes. So I just wanted to know about the initiative taken for the GT and the ecom channel. 20:35 20 minutes, 35 seconds So but GT is uh fundamentally in terms of uh sales integration and branch integration. Salesforce integration and 20:42 20 minutes, 42 seconds branch integration and uh uh sellout you know integration of sellout management capabilities. That's as far as GT is 20:50 20 minutes, 50 seconds concerned. Ecom integration u is fundamentally you know so we are having the same team and the same systems uh 20:59 20 minutes, 59 seconds driving sunflame it's taking uh longer time because I think you know we are also working on uh 21:07 21 minutes, 7 seconds the offerings uh on the uh platform and you know we had some challenges with uh listing some uh categories um you know 21:17 21 minutes, 17 seconds voluminous categories so um GT I think you know We we are seeing traction already. I think we had some decent 21:26 21 minutes, 26 seconds growth uh for full year and I think Q4 was better and we expect Q1 to be also um you know reinforcing uh the direction of growth. Yeah. 21:36 21 minutes, 36 seconds Okay. Uh my second question would be uh given that the innovation cycle in the kitchen appliance industry is very 21:45 21 minutes, 45 seconds fastpaced and we too have you know refreshed our portfolio. So we and the benefit of this portfolio would be you 21:53 21 minutes, 53 seconds know visible after a year. So will we be able to sustain or improve our profit 22:00 22 minutes margins and how is this new portfolio different both in terms of uh industry 22:07 22 minutes, 7 seconds uh le innovations and our previous portfolio and how would this redefine our position in the industry? 22:16 22 minutes, 16 seconds No, I think you know two three things. 22:19 22 minutes, 19 seconds Uh, one is you know as far as our see I think you know we are refreshing products as we speak. It's just that you 22:26 22 minutes, 26 seconds know the significant part of our uh refresh will land uh you know towards later half of this year. Yeah. Uh that 22:33 22 minutes, 33 seconds being said you know already you know portfolio enhancements are happening now. Uh there are you know multiple uh 22:41 22 minutes, 41 seconds layers here. I think you know at uh you know one layer is you know uh some of our offerings are dated and you know they are being upgraded. 22:50 22 minutes, 50 seconds Some of it is about uh you know addressing white spaces. Some of it is about you know uh you know getting the 22:58 22 minutes, 58 seconds lineup to reflect um you know emerging technology trends like BLC. So these are the kind of things. So fundamentally the 23:05 23 minutes, 5 seconds addressability of the market um the freshness of the uh offering and uh you know the wherever right particularly I 23:13 23 minutes, 13 seconds think you know you know we have fans in CSD or you know we have uh um uh what I 23:20 23 minutes, 20 seconds would say as um u in in you know we had gaps in built-in and uh you know we had 23:27 23 minutes, 27 seconds uh gaps in you know uh BLC based offerings in hobs these are getting addressed yeah so I think you know as As far as the you know as I said you know 23:35 23 minutes, 35 seconds right now this year you know you will start to see benefit as we strengthen the uh the reach with the help of our you know branch uh and our salesforce 23:44 23 minutes, 44 seconds and uh also as we strengthen the sellout capability for Sunflame. So that's our focus. I think um you know the larger 23:52 23 minutes, 52 seconds benefit of product rollout uh you know will be more visible in second half of this year and also going into next year. Yeah. 24:01 24 minutes, 1 second Okay. Understood. Thank you. 24:05 24 minutes, 5 seconds Thank you participants to join the question queue you may press star and one. 24:13 24 minutes, 13 seconds Next question is from the line of Anerata Jooshi from ICA securities. Please go ahead. 24:18 24 minutes, 18 seconds Yeah thanks for the followup. Uh just two questions now. Uh with uh uh integration of Sunflame largely done and 24:27 24 minutes, 27 seconds uh debt repayment also over. So the cash accumulation should start on the balance sheet. 24:33 24 minutes, 33 seconds uh just some of the capex may take some cash but still there might be cash accumulation. So what will be the 24:40 24 minutes, 40 seconds strategy with the cash? Uh is the uh management or the company looking at uh another uh uh inorganic growth 24:49 24 minutes, 49 seconds opportunities or uh how should we think about that? Uh that is question number one. And uh question number two uh we 24:58 24 minutes, 58 seconds see BLC as a technology is making um rapid inroads even in kitchen appliances 25:03 25 minutes, 3 seconds like uh mixers also. So uh how does the uh management see uh Sunflame uh uh 25:12 25 minutes, 12 seconds prepared for uh uh that that uh kind of product innovation and uh overall how uh 25:19 25 minutes, 19 seconds do we see the BLC fans also uh market shares uh shaping up for Vard. Yeah, that's it from my side. 25:27 25 minutes, 27 seconds Yeah. So as far as uh the cash is concerned uh yeah we are done with debt tree payments and uh yeah barring capex 25:37 25 minutes, 37 seconds we should be having a reasonably good free cash flow. Uh we have not taken any call of you know making any acquisitions 25:45 25 minutes, 45 seconds or anything like that. If you get an opportunity at a good uh value we will look at it and uh it will be a case to 25:52 25 minutes, 52 seconds case basis. So nothing to report on that. Uh the other part is on BLC. Uh I think uh already if you look at ceiling 26:01 26 minutes, 1 second fans uh regards uh BLC is contributing roughly 40 odd% of the ceiling fan sales 26:08 26 minutes, 8 seconds uh which is uh pretty good. Our uh growth in BLC has been very very good. 26:15 26 minutes, 15 seconds Our uh complaint rates reliability and offerings are very very competitive and we are continuing to launch as we go 26:22 26 minutes, 22 seconds forward. As far as the BLZ kitchen is concerned, uh there are two areas. One is on mixer grinder and second is on chimney. Chimney I think we've already 26:31 26 minutes, 31 seconds launched BLZ chimneys. Um but in mixer grinder I think this is the device that is used for half an hour 40 minutes 26:39 26 minutes, 39 seconds daily. So it's not a device that is running constantly like a fan or a AC or something like that. So uh there I think 26:48 26 minutes, 48 seconds uh you know we have not yet launched. I think it's more difficult to explain to customers uh the rational of uh you know 26:55 26 minutes, 55 seconds payback when something is running only for half an hour or 45 minutes every day. Uh but in the other two cases like 27:02 27 minutes, 2 seconds chimney as well as uh you know chimney the running time is uh longer. It'll be a few hours every day. So uh there seems 27:11 27 minutes, 11 seconds to be some traction. So that that but the be I still don't think it'll be as much as the fan because in in the case of ceiling fans it's running for almost 27:19 27 minutes, 19 seconds 8 9 hours a day. I mean assuming that you're putting fan through the night uh in your bedroom and that's the payback hypothesis is very strong there. 27:31 27 minutes, 31 seconds Oh yes sure sir. Thank you. Thank you. 27:35 27 minutes, 35 seconds Thank you participants. If you wish to join the question queue, you may press star and one. 27:43 27 minutes, 43 seconds Next question is from the line of Deepak Lalwani from Unifi Capital. Please proceed. 27:49 27 minutes, 49 seconds Uh hello sir, thank you for the opportunity and congrats on good set of numbers. Uh so I have a few questions on the revenue side. Uh I'll ask all of 27:57 27 minutes, 57 seconds them together. Uh so firstly on the electronics division, uh we've seen good growth this quarter. So if you can break 28:05 28 minutes, 5 seconds up this into volume and value split and uh if you can help us how the secondary growth that is the channel growth in 28:12 28 minutes, 12 seconds April has been that's one. Uh the second question the durable segment I understand has been hit this year because of bad summers. So what is our 28:22 28 minutes, 22 seconds strategy to revive growth uh again in the segment? So if you can share your product and channel level strategy and third uh so buyers we understand that the competitive intensity has increased. 28:33 28 minutes, 33 seconds So how and one more big player is entering the segment end of this year. 28:38 28 minutes, 38 seconds So how should VGA be able to uh you know tackle this and be able to grow and at an overall level Mitch if you could 28:47 28 minutes, 47 seconds share what kind of growth rates uh one should envisage for your company going forward because you've had a bad year and uh looks like summers have been good 28:56 28 minutes, 56 seconds and there's recovery so overall what kind of growth should you should you aspire? 29:01 29 minutes, 1 second Yeah, I'll take the uh start with the second part. Uh so uh if you look at the durable consumer durable uh segment uh 29:10 29 minutes, 10 seconds both air coolers and fans have performed badly especially uh TPW fans. Uh that's primarily related to a lot of the impact 29:18 29 minutes, 18 seconds of Q1 where we had extremely poor summer and uh TPW is a very very seasonal business. So if it does not get sold in 29:25 29 minutes, 25 seconds the summer window then the inventory typically sits with the trade and continues uh so on so forth. Having said 29:33 29 minutes, 33 seconds that and as we speak currently we are having a shortage of TPW fans because uh like I said the south Indian summer has 29:40 29 minutes, 40 seconds been pretty decent and uh sellout has been good. So that's as far as the consumer is concerned. So I think uh 29:47 29 minutes, 47 seconds this year we should have a good growth uh in consumables because uh of the low base effect. Uh the the third part is on 29:55 29 minutes, 55 seconds wire. Uh wire is we are cognizant of the fact that uh uh large player is entering plus some of our peer companies from 30:03 30 minutes, 3 seconds lighting are also entering wire. So wire competitive intensity is uh expected to be uh more uh than what it was. Uh but 30:13 30 minutes, 13 seconds it's a very pecular category. um you know it's a category with low gross margins and you need a scale of at least 30:19 30 minutes, 19 seconds thousand odd crores to um make money in this business. So and there is also fluctuation of uh raw material prices 30:26 30 minutes, 26 seconds upwards and downwards and when it goes downwards you have to also write off your inventory. So I think the new 30:33 30 minutes, 33 seconds players will find it uh some find some it'll take some time to figure out the mechanics on you know how to crack this 30:41 30 minutes, 41 seconds industry. I don't think it'll it's not an easy industry to break into. We've also had entrance before who have 30:47 30 minutes, 47 seconds entered and left. So it's but yes we are cognizant of this and we have also taken some measures to strengthen the sales 30:54 30 minutes, 54 seconds system uh on the volume and value growth of electronics. Uh Sudashan do we have a number for Q4? 31:03 31 minutes, 3 seconds Roughly speaking about 3% is um price growth the balance is volume. So in Q4 about 3% would be uh because because you 31:12 31 minutes, 12 seconds have to understand the pricing and the uh actions would have started uh towards the later part of the uh quarter. 31:24 31 minutes, 24 seconds So I hope it's mostly volume growth. Uh it's mostly volume growth. I think price growth is uh uh you know about 23%. 31:32 31 minutes, 32 seconds Thanks. Yeah, that was that was very clear. Mun if you could share uh your view on the overall growth rate of the company for the next year. 31:42 31 minutes, 42 seconds So I think uh as as a company we try to grow between 10 to 12% in volume and uh there is a 1 to 2% uh price growth uh 31:52 31 minutes, 52 seconds you know you know culminating into 15% growth which is what we aim to do but current the value I mean the price 31:59 31 minutes, 59 seconds growth could be higher because like I said uh we are seeing significant uh cost inflation so uh we we will wait and 32:07 32 minutes, 7 seconds see what happens but but uh so far we you know we are confident confident of holding our volume growth. Uh so like I 32:14 32 minutes, 14 seconds said if we have a reasonably good summer uh the summer categories should perform well. We have to also be cognizant that 32:21 32 minutes, 21 seconds Q1 of LA uh last that is FI26 uh we had a degrowth in some of the summer categories. So so we should have 32:28 32 minutes, 28 seconds a healthy uh you know volume growth this year because the base is on a lower side. 32:34 32 minutes, 34 seconds Sure. Uh my next question was on uh margins. So if you can uh help me understand see we we've been talking about doubledigit EITA margins and we've 32:43 32 minutes, 43 seconds done well on the gross margin side uh so for the next year if you can break this 32:49 32 minutes, 49 seconds doubledigit EITA margin uh how should we look at it segment wise how should it play out in the consumer 32:58 32 minutes, 58 seconds durables which has seen a very sharp deterioration in margins uh how should we look at the recovery in electronics 33:05 33 minutes, 5 seconds and by double digit Are we targeting somewhere around 11 12% or 10% is uh is a broad guidance? 33:14 33 minutes, 14 seconds So ideally this year we would have loved to you know claim that we will hit 10% uh a beta margin double digit 33:21 33 minutes, 21 seconds but uh you know we are going through a fairly significant cost inflationary period. uh so uh you know the things are 33:30 33 minutes, 30 seconds quite uh uh volatile and uh there is no uh it doesn't look like the conflict in West Asia is going to end uh anytime 33:39 33 minutes, 39 seconds soon right so we probably going to have a prolonged uh period of high cost going forward but if it was a normal kind of 33:48 33 minutes, 48 seconds inflation we would have been much more confident to say that so in this case we probably would like to uh finish a couple of quarters and then come back 33:56 33 minutes, 56 seconds and comment on the margins but so far like I said we have been proactively uh we have been proactive to sense this 34:04 34 minutes, 4 seconds and start pricing actions early and uh lot of our peers companies have also announced uh pricing actions uh as as 34:13 34 minutes, 13 seconds they've come to realize the the quantum and size of the price increases are high uh uh now I think as a for a company 34:22 34 minutes, 22 seconds like us I think we also need to have a good summer to help us. So, South India pretty much uh we have had a decent 34:30 34 minutes, 30 seconds start to summer and if non-s we also have good traction for summer. I think we should be you know uh confidently 34:37 34 minutes, 37 seconds hitting that uh you know number but I wouldn't say 11 12%. I would say at least 10% is what we would like to expect here but we like I said this 34:46 34 minutes, 46 seconds inflation is still you know something that is uh you know going to be a challenge. 34:52 34 minutes, 52 seconds Yeah. So, so what we see this year is that uh you know apart from uh the summer challenge like you've controlled 35:00 35 minutes your expenses quite well like the employee cost is flat and the other expenses has not gone up much. So should we uh see the same trend playing out uh 35:08 35 minutes, 8 seconds even in FI27 which could you know buffer which could provide you some buffer in terms of uh cost management etc. 35:16 35 minutes, 16 seconds So yeah some part of the employee cost is variable pay. So definitely you know as a company if you don't achieve the you know top line and bottom line 35:24 35 minutes, 24 seconds numbers the payout variable payout also comes down. So that's the there uh we also are not expecting any huge uh uh 35:34 35 minutes, 34 seconds increases in manpower this year. So like I said we are on a we are watchful we have uh taken actions to control some 35:41 35 minutes, 41 seconds cost uh and uh we will like I said if if you if if we get a good Q1 and good summer then we would be more confident 35:49 35 minutes, 49 seconds to spend uh you know in the following quarters. So that's the way we look at it. 35:54 35 minutes, 54 seconds Understood sir. So last question uh since you said April was good any uh any any qualitative uh feedback that you 36:01 36 minutes, 1 second could give us in terms of how the secondary has been in terms of uh the growth rate and in terms of the channel demand. 36:09 36 minutes, 9 seconds I mean like I you are also following the same you know uh news articles and 36:17 36 minutes, 17 seconds predictions by the meteorological department as we are. But I can say that uh uh you know south India usually the 36:25 36 minutes, 25 seconds summer starts early March April and that has been on track largely. Uh non south it's been a mixed bag. You know there are uh rains in some parts of non south. 36:36 36 minutes, 36 seconds Uh you look at non south east is the big market for weard. So uh you know east also has to fire uh for the company to 36:44 36 minutes, 44 seconds do uh you know I would like I mean so I think we still have time. I think we still have another uh one and a half 36:51 36 minutes, 51 seconds months more than one and a half months left uh for the quarter. So it'll be too early to comment uh on this but uh but 36:59 36 minutes, 59 seconds just keep in mind the base is already on the lower side because last year we had a decline in some of the categories. 37:07 37 minutes, 7 seconds And so how would the channel inventory in all these categories? 37:11 37 minutes, 11 seconds Like I said it's a mixed bag. So if you look at TBW fan we are neither we have inventory nor our partners have inventory and we are having stockouts. 37:19 37 minutes, 19 seconds So it's a mixed bag. It's not it's not the same for every everything. So certain categories are you know we are having uh you know supply challenges. Uh 37:29 37 minutes, 29 seconds so like I said in South India I don't think there will be any inventory issue with any uh trade partner but non south is the the summer is yet to start. So 37:37 37 minutes, 37 seconds it'll be to you know the summer sales are yet to you know fully uh start. Okay, thank you. All the best. 37:46 37 minutes, 46 seconds Thank you participants. If you wish to join the question queue, you may press star and one. 37:53 37 minutes, 53 seconds Next question is from the line of Natasha Jane from Philip Capital. Please go ahead. Yeah, thank you for the opportunity sir. 38:00 38 minutes Uh two questions. One broadly across cap the you know be it your stabilizer wires or fans. uh when I've gone on the ground 38:10 38 minutes, 10 seconds what I've understood is there was a lot of inventory that got pushed in full Q because of uh you know cheaper raw material cost and therefore cheaper 38:17 38 minutes, 17 seconds product sizes but uh one Q has been broadly disappointing in terms of at least start for summer you yourself 38:24 38 minutes, 24 seconds pointed east and not was also a little bit of flip-flop here and there and south also um what I've heard is the channel was uh stocked with inventory 38:33 38 minutes, 33 seconds for more than what's usually required so on this backdrop Secondaries have moved faster across tooling products. Can you 38:41 38 minutes, 41 seconds throw some light? How is the selling or the primaries happening against the secondaries? And the second question is if you could also point out if you know 38:50 38 minutes, 50 seconds in case you do channel financing for which product categories. 38:56 38 minutes, 56 seconds Okay. So if you look at fans the the the star rating change happened primarily for ceiling fan. So the sales for 39:02 39 minutes, 2 seconds ceiling fans is very high in December because all the branded all the brands had to sell all the ceiling fans before 31st December you know 2025. 39:14 39 minutes, 14 seconds Uh because of that there was a lot of ch inventory as we entered okay uh but uh this this doesn't hold true for TPW 39:23 39 minutes, 23 seconds because TPW B star rating norms are yet to start it's expected to start the next year. Okay. So when I said that TPW 39:31 39 minutes, 31 seconds inventory is not there, this is the reason ceiling fans we don't have any inventory issue. There is substant inventory with us and with the trade 39:39 39 minutes, 39 seconds also TPW fans most of it is made out of uh plastic and there is a challenge in procuring that particular type of 39:46 39 minutes, 46 seconds plastic in in this in in India. As we understand this is the reason okay there is a raw material shortage for that particular type of plastic that is most 39:55 39 minutes, 55 seconds widely used to make uh TPW fans and many of the our vendors are not having you know requisite inventory to make them so 40:02 40 minutes, 2 seconds that that's the one reason uh channel financing I think on the whole it's about 10% of our retailers uh if you 40:10 40 minutes, 10 seconds look at the data book 10% data retail finance we don't retail finance we do channel finance you're talking about You're talking about channel finance, right? 40:19 40 minutes, 19 seconds Yes, sir. Channel finances. 40:21 40 minutes, 21 seconds Yeah. Yeah. So, channel finance um that's for our primary customer. Yes. Our primary customer. 40:26 40 minutes, 26 seconds Yeah. So, approximately 35% of our business goes through channel financing arrangement. Yeah. 40:32 40 minutes, 32 seconds It's not category linked, it is customer linked. 40:36 40 minutes, 36 seconds So, it is not a category linked is a customer. So for example, if you have a distributor for a you know bunch of products like water heaters, fans and uh 40:45 40 minutes, 45 seconds air coolers and all the entire customer is under channel. It's not a category thing. It's more of a distributor level 40:52 40 minutes, 52 seconds uh arrangement and if you look at the entire uh portfolio of dattors 35% of the portfolio is under channel finance. 41:02 41 minutes, 2 seconds And so uh could you throw some color in terms of are the great DHC uh dealers distributors facing any problem in terms 41:10 41 minutes, 10 seconds of working capital management and therefore slower payments to the brand? Is that something that you're observing? 41:16 41 minutes, 16 seconds Uh no I don't think so. In fact our collections have been pretty strong in uh the last quarter. We are not facing 41:23 41 minutes, 23 seconds any. So we have a uh we we have a pretty strong uh commercial team where which independent of the sales team actually 41:32 41 minutes, 32 seconds tracks and manages the uh you know credit limit of each of our customers and decides which customer should be 41:40 41 minutes, 40 seconds increase credit limit which customer should reduced which customer should be offered channel financing and which customers should not be. So we don't 41:48 41 minutes, 48 seconds have this problem and we also have a a tool where in which we also are able to see the inventory of our partners where 41:56 41 minutes, 56 seconds in which we know whether they they're sitting with inventory or they have diverted money from the business and so on and so forth. So as far as vard is 42:03 42 minutes, 3 seconds concerned, we don't have this uh you know issue of uh you know uh so whatever sales we we typically do these are 42:12 42 minutes, 12 seconds usually real sales and it's not just you know we don't encourage and we don't allow dumping. 42:19 42 minutes, 19 seconds So we have mechanisms to stop that practice. You know there is this tendency by sales guys to dump stuff which so we have an independent way to 42:27 42 minutes, 27 seconds try you know make sure that doesn't happen. Yeah. 42:32 42 minutes, 32 seconds So one last question. So this is more longer term in nature than near term. So for the longest time across cooling products we've been hearing that there 42:41 42 minutes, 41 seconds will be consolidation you know be it cooling on the AC side or coolers or or fans lot of competition that's come in 42:47 42 minutes, 47 seconds and is right now situation such that you know cost has increased multiple times and the price price highs are not enough 42:55 42 minutes, 55 seconds to offset that cost. So um do you think now is the right time when you you could see consolidation happening or uh 43:03 43 minutes, 3 seconds industry is going to remain fragmented and therefore competition probably will be the same in terms of see what is happening is the core growth 43:12 43 minutes, 12 seconds in the country is not that that high. So what is happening is uh every every company in every category is thinking 43:20 43 minutes, 20 seconds like okay maybe if I get into this category growth will happen. So that is why you see everyone in the lighting business trying to enter into wires. Uh 43:28 43 minutes, 28 seconds there are uh companies which are in the you know water purification business that have entered into fans. So I think everyone is entering everything. Okay. 43:36 43 minutes, 36 seconds So it's not that you know and and this process has not stopped you know it is it is an ongoing process. It's something 43:43 43 minutes, 43 seconds that has been going on since 1617. So it's an almost 8 n year phenomenon. So 43:51 43 minutes, 51 seconds what we at VGA are we are going to we have pegged our growth and we have to grow despite all these macro headwinds 43:59 43 minutes, 59 seconds then that's what we aim to do. We we have done this by uh integrating our manufacturing. So for example from a 44:06 44 minutes, 6 seconds sourcing company we are now a completely integrated manufacturing company which allows us to build products which are 44:13 44 minutes, 13 seconds sufficiently differentiated. So we are not selling you know your meto uh you know economy and subeconomy model kind 44:21 44 minutes, 21 seconds of products. We want to build and sell you know premium and mastigu products for which you need to own as much of the supply chain as possible and that's why 44:30 44 minutes, 30 seconds we have spent like close to 300 400 crores last 8 years to build you know so many plants and to get into the manufacturing. It is an incredibly tough 44:38 44 minutes, 38 seconds thing to do but we are try we have done it because this is the only way we can fight this overcrowded market. I don't see it uh you know I don't see 44:45 44 minutes, 45 seconds consolidation happening but one thing is sure when such shocks happen so when you have a environment where you have to take 15 20% price increases and when you 44:54 44 minutes, 54 seconds have an environment where a lot of your raw material raw materials are under shortage or you're not getting raw materials that's when the better you 45:03 45 minutes, 3 seconds know more organized companies companies which have better uh supply chain capabilities will probably do better than you know some of the other players. 45:13 45 minutes, 13 seconds So that's that's the broad thing. So so far I've not seen any you know move for consolidation. Uh but because we are still seeing you know everyone trying to get into every other category. 45:24 45 minutes, 24 seconds A follow up on that when you say everyone trying to get into every category. So again a broader longerterm question we we've seen a lot of brands 45:32 45 minutes, 32 seconds entering across electrical space right some of your peers who were predominantly say a fans player have now entered wires and vice versa. 45:39 45 minutes, 39 seconds predominantly wire and cable player enter try to enter finance market in the last couple of years. 45:43 45 minutes, 43 seconds So just want to understand your view what is the strategy that works here? I mean is it that if you have a fantastic challenge you can push anything? 45:52 45 minutes, 52 seconds No it is not. So, so for example, uh if you want to profitably build a business, uh you have to you know you have to take 45:59 45 minutes, 59 seconds 15 20 years build it SKU by SKU uh get into you know you can start with sourcing but I think unless you are 46:08 46 minutes, 8 seconds really investing in the uh R&D unless you're really investing in the manufacturing I don't think many of these companies have any hope to make 46:16 46 minutes, 16 seconds money out of it. I mean they can show revenue but making money is a different you know the top barring the top four five uh brands in each of these markets 46:24 46 minutes, 24 seconds most of them will not end up making money that much I can guarantee so at VGA for example we have always remained a multi-product company uh we it's not 46:33 46 minutes, 33 seconds that we have got into multiple categories for the sake of getting into it we have always been an organized as a multiple product company and we very 46:41 46 minutes, 41 seconds long-term view you know we are okay to seed a category for 10 15 20 years and I don't know how of the are you know of 46:48 46 minutes, 48 seconds the companies we spoke about are able to do it uh like I said like wire is a completely different category and when when they enter wire they'll understand 46:56 46 minutes, 56 seconds that winning in wires is you know very very different the skills required it's probably very different from what it 47:02 47 minutes, 2 seconds requires to win in fan and similar a fire company may not be able to be successful in fan so everyone will not be able to do everything and we have 47:10 47 minutes, 10 seconds given up a lot of our for example our cost structures a multi-product company as a multi product company our cost structure are fairly high because we 47:18 47 minutes, 18 seconds have to carry people for all our categories and these are some of the trade-offs we do. Uh so good news is like company like us we are more you 47:26 47 minutes, 26 seconds know the risk is very less because we all all the categories will not get into trouble at the same time. So we will see 47:34 47 minutes, 34 seconds lesser you know impact on you know fluctuations in each category. uh but I but I can say that I've seen the cycle 47:41 47 minutes, 41 seconds like for example eight years back every everyone wanted to get into kitchen appliances space and now you know we don't have like there is everity is out 47:49 47 minutes, 49 seconds of kitchen uh a lot of the other brands that are got into kitchen have got out so now only the key core companies are still remaining so so we'll have a 47:57 47 minutes, 57 seconds similar kind of a clean up after four five years understood sir and s just one last 48:04 48 minutes, 4 seconds observation I'd leave I'm actually on the ground right now to get some general feedback and I came across a lot of players who've been keeping a solar 48:12 48 minutes, 12 seconds inverter and I got fantastic feedback on the product and the support from the brand was also very positive. So I just wanted to drop that feedback. Thank you 48:20 48 minutes, 20 seconds so much sir and all the thank you 48:29 48 minutes, 29 seconds participants if you wish to join the question queue you may press star and one. Next question is from the line of Vinit Prasad from Invest. Please go ahead. 48:40 48 minutes, 40 seconds Um thank you for the follow opportunity. 48:42 48 minutes, 42 seconds Uh just a couple of things. U we've realized uh solar business for you have been has been growing extremely fast. Uh 48:51 48 minutes, 51 seconds can you give some idea about what the size of that business could be? Number one. Uh what I understand uh um uh is it 49:01 49 minutes, 1 second it could be more than 500 crores in terms of topline now. And how do we see it growing? um are there for the legs to 49:08 49 minutes, 8 seconds growth as in it can it grow in very high double digits for another few years. 49:14 49 minutes, 14 seconds So I think uh you know we don't like to give out numbers uh but it is not uh you know it is not reached the 500 uh mark. 49:23 49 minutes, 23 seconds Uh we only entered I mean we only ventured into this business uh fairly recently like you know uh yeah about 49:31 49 minutes, 31 seconds about three six months back. Uh but it's growing very fast. Uh if you ask me this business has potential to become very 49:39 49 minutes, 39 seconds very large but we have been very careful and choosy. So for example we are primarily selling uh solar inverters for 49:47 49 minutes, 47 seconds residential users. So we and small you know institutions. So we have not got into the very large uh institutional 49:54 49 minutes, 54 seconds orders and you know such like that because there are associated risks along with it. U but we are very confident 50:01 50 minutes, 1 second that pretty soon uh maybe in 3 to four years uh this will become one of the largest larger categories for VGA as we 50:09 50 minutes, 9 seconds have you know an inverter battery business today which is quite large. 50:13 50 minutes, 13 seconds similar size or it can be even more than that but uh as as on today we have tried to sell to 50:21 50 minutes, 21 seconds customers where it is more of a B2C kind of a play and it is not a institutional sales I mean we do do institutions but 50:28 50 minutes, 28 seconds it's very small it's mostly uh residential consumers where we have equity and where we have pricing power and where our sales and service network 50:36 50 minutes, 36 seconds you know have a differentiating factor where instead of institution sales where you know it's the most of a base. So uh we are very bullish on this 50:46 50 minutes, 46 seconds category and uh we we do believe that and given the recent challenges with fuel and all that uh government is under 50:54 50 minutes, 54 seconds huge pressure to diversify away from uh fossil fuels in one way or the other and uh this uh this is already had good 51:03 51 minutes, 3 seconds traction in India and I think uh you know it'll continue and one more thing is I think West Bengal and Tamadu are two markets which were till now not you 51:13 51 minutes, 13 seconds know encouraging this adoption of rooftop solar because it was uh BJP government initiative and both these states we have hope definitely West 51:21 51 minutes, 21 seconds Bengal will open up and I think Tamil Nadu also the the new government policy will be definitely to push for you know 51:28 51 minutes, 28 seconds cleaner energy understood that that is help and lastly 51:36 51 minutes, 36 seconds on the lighting for uh where are we if you can give some timelines how Is it progressing in terms of product distribution uh sales any any color on that? 51:48 51 minutes, 48 seconds Uh it's still work in progress for us. I think uh sometime uh towards uh you know early next quarter you know we look 51:55 51 minutes, 55 seconds forward to you know bringing it into marketing. 52:03 52 minutes, 3 seconds But that's it from me. Thank you so much. Thank you. Thank you. 52:10 52 minutes, 10 seconds Next follow-up question is from the line of Deepak Lalwani from Unifi Capital. Please go ahead. 52:17 52 minutes, 17 seconds Uh hello sir, thank you again. Uh so I just wanted to check uh you know how many months of uh inventory of each raw 52:24 52 minutes, 24 seconds material uh do we maintain at the factory level aluminium, copper, plastic etc. and this availability issue that 52:33 52 minutes, 33 seconds you mentioned. Uh so how are we how are we sourcing our materials uh from uh different channels if you could explain 52:41 52 minutes, 41 seconds uh and if there is an issue if you can uh is it a big issue that is uh that will probably lead to lower production 52:50 52 minutes, 50 seconds if you can just highlight that uh these two are my questions so I think as far as availability is concerned it's primarily on the polymer 52:58 52 minutes, 58 seconds or crew derivatives where there are availability issues uh so for example Our batteries require sulfuric acid. So 53:06 53 minutes, 6 seconds sulfuric acid is also used for production of pesticides. So that is a controlled substance now because the 53:14 53 minutes, 14 seconds government is rationing it. Uh but we are still okay. We have tied up with you know tied up and locked up supplies for 53:22 53 minutes, 22 seconds the next 1 month or you know more than that. Uh the same is the case with certain type of raw like I mentioned TPW fans there seems to be some shortage. uh 53:31 53 minutes, 31 seconds but I think we as soon as the war broke out uh we had set up a war room and uh we identified these uh sensitive items 53:40 53 minutes, 40 seconds uh very well in advance and we have gone and and because we are a fairly cashrich company we've gone and secured supplies 53:48 53 minutes, 48 seconds uh from wherever we could so we are pretty much okay I think till end of June I don't think we'll have any issue uh and I think largely we should be fine 53:56 53 minutes, 56 seconds I mean but there there is definitely so for example if the demand is 110 10 the supply will be like 105. So there will be some bit of shortage here and there 54:05 54 minutes, 5 seconds but I think company like us will be largely okay because we have a diversified uh supplier base and we have gone and secured supplies for most of 54:13 54 minutes, 13 seconds our uh production. Uh sulfuric acid is still challenging because we cannot store that material a lot of that 54:20 54 minutes, 20 seconds material we don't have the capability to store it. uh it's an asset. So uh our ability to store is very low. But wherever we we can store, we have tried 54:29 54 minutes, 29 seconds to store or we have stored it at you know our vendors places. So we don't foresee any uh supply related challenges 54:36 54 minutes, 36 seconds at least for Q1. Uh we are largely covered but this this this is a you know uh this is a potential issue for many 54:45 54 minutes, 45 seconds could be for smaller uh brands regional brands who don't have the kind of clout we have. We company like Vard will have over its suppliers. 54:55 54 minutes, 55 seconds Sure. Understood. So last question. You mentioned that we've taken a bulk of our price hike. So has there been any 55:02 55 minutes, 2 seconds resistance that you've seen in demand that demand uh falling off for our categories or any loss of or any loss of 55:11 55 minutes, 11 seconds market share that you have seen uh if you can highlight. So, so with any price hexagon, uh this is not a natural price hike, 55:20 55 minutes, 20 seconds right? Usual price hexag retailers are used to is for 2% 3%. So when it's 10% and 12%. Definitely there is going to be 55:27 55 minutes, 27 seconds some negotiation push back and all but like I said it's it's it but as as as far as we see it I think by the time 55:34 55 minutes, 34 seconds this kind of uh uh the high cost raid starts hitting in we are fairly confident they'll get passed on because 55:42 55 minutes, 42 seconds a lot of it is been accepted but wherever there are some challenges for example if it's a summer category and uh 55:48 55 minutes, 48 seconds you know it's in a geography where it's uh summer has not started yet or there is some rains and stuff like we've given case case to case uh you know support 55:57 55 minutes, 57 seconds for our distributors and retailers but largely it's looking okay because I think it's not that I mean I don't think 56:04 56 minutes, 4 seconds any company can absorb the quantum so I think uh I think uh I think everyone has announced and I think there is 56:12 56 minutes, 12 seconds definitely an intention to pass on these prices uh and like I said it's only in cases where the weather is not supporting only those places we are 56:21 56 minutes, 21 seconds given case to case but you know largely it is uh you know been passed Sure sir if you can share uh what's your raw 56:28 56 minutes, 28 seconds material mix for the whole company copper plastic and aluminium roughly 56:35 56 minutes, 35 seconds copper is the biggest uh what is second biggest is aluminium or steel uh it'll be copper 56:43 56 minutes, 43 seconds maybe yeah yeah copper will be the largest followed by polymers and then followed by polymer then aluminium then 56:50 56 minutes, 50 seconds then steel yeah we don't I don't have a exact number for that Yeah, because it's it's not a single category, right? It's multi. Each category has got a different mix. 57:01 57 minutes, 1 second Sure. Understood. 57:02 57 minutes, 2 seconds But uh but but but everything has gone up, right? I mean so so it's not that anything has not gone up, right? So yeah. Yeah. Okay. Got it. Sure. Thanks. 57:15 57 minutes, 15 seconds Thank you participants. If you wish to ask a question, you may press star and one. 57:26 57 minutes, 26 seconds Ladies and gentlemen, if you wish to join the question queue, you may press star and one. 57:35 57 minutes, 35 seconds As there are no further questions from the participants, I now hand the conference over to the management for the closing comments. 57:42 57 minutes, 42 seconds Thank you all for taking time to join our earnings call. I would like to thank Venit and the team at Invest for hosting this call. We look forward to 57:50 57 minutes, 50 seconds interacting with all of you in the next quarter. Thank you. Thank you, sir. 57:56 57 minutes, 56 seconds On behalf of Invest Capital, that concludes this conference. Thank you all for joining us and you may now disconnect your lines.