Voltas Ltd — Q4 FY26

Voltas Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=Ue-xOImyEpQ Published: 14 hours ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to Walt Limited Q4 FI26 earnings conference call hosted by ICA Securities Limited. 0:12 12 seconds As a reminder, all participant lines will be in the listenonly mode and there will be an opportunity for you to ask questions after the presentation 0:19 19 seconds concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. At the 0:28 28 seconds time of the question and answer session, we would request participants to please limit their question to one per participant. Please note that this 0:36 36 seconds conference is being recorded. I now hand the conference over to Mr. Ander Jooshi from ICA Securities. Thank you and over to you sir. 0:46 46 seconds Yeah, thanks Ruya. On behalf of ICICI securities, we welcome you all to Q4 0:52 52 seconds FI26 and FYI26 results conference call of Voltas Limited. We have with us today senior management represented by Mr. 1:01 1 minute, 1 second Makundan Menan, managing director, Mr. Kridar, Chief Financial Officer, Mr. 1:08 1 minute, 8 seconds Nikil Chandrana, head of corporate finance, Mr. Mari Sani head of finance controller and Miss Sumanatri head FPNA. 1:19 1 minute, 19 seconds Now I hand over the call to the management for initial comments on the quarterly performance and then we will open the floor for question and answer session. Thanks and over to you sir. 1:32 1 minute, 32 seconds Good evening all. This is Srida here CFO Boltas. Glad to connect with you all this evening. 1:39 1 minute, 39 seconds uh this this is a quarter and year ended 31st March 26 results for Voltas. So Voltage delivers progressive recovery in 1:48 1 minute, 48 seconds Q4 supported by cooling segment and robust performance from the other diversified businesses. Uh to give a 1:56 1 minute, 56 seconds background on the global economy uh the global economy entered 2026 amid a backdrop of cautious recovery and rising 2:03 2 minutes, 3 seconds uncertaintity. Moderating inflation improved financial conditions and sustained investment momentum supported economic activity during the early part 2:12 2 minutes, 12 seconds of the year while global trade flows and consumption trends remained relatively resilient despite uneven uh recovery across 2:21 2 minutes, 21 seconds regions. However, as the quarter progressed, escalating geopolitical tensions, particularly across energy sensitive markets triggered significant 2:30 2 minutes, 30 seconds volatility in commodity prices, currencies and logistics networks, further elevating input cost pressures and downsize this to global growth. 2:37 2 minutes, 37 seconds Against this challenging backdrop, Voltas continue to demonstrate resilient and progressive financial improvements supported by strong domestic demand 2:46 2 minutes, 46 seconds fundamental structural reforms and the company's ability to proactively navigate supply chain and operational disruptions. 2:55 2 minutes, 55 seconds Despite hint h headwinds included including delayed summer onset in select markets uh global supply chain constraints and currency volatility 3:02 3 minutes, 2 seconds during Q4 FI26 the company delivered a progressive recovery and continued to maintain its leadership in the cooling segment through a combination of 3:10 3 minutes, 10 seconds resilient led strategy customercentric innovation and disciplined execution. 3:15 3 minutes, 15 seconds Over the last year, Voltas has undertaken transformative init in initiatives across the B2C segment, including a refreshed product portfolio, 3:23 3 minutes, 23 seconds stronger manufacturing capabilities, enhanced brand investments, sharper consumer communication, and deeper channel engagement. These initiatives 3:31 3 minutes, 31 seconds are now beginning to deliver tangible outcomes across operational efficiency and brand momentum. The project's business also demonstrated resilience 3:39 3 minutes, 39 seconds with stable execution and healthy operational performance, further strengthening Voltas' position as a diversified and a future ready 3:46 3 minutes, 46 seconds enterprise. The agency business delivers stable performance in Q4 FI26. While the external environment continues to remain 3:53 3 minutes, 53 seconds dynamic, management remains firmly focused on sustainable growth, margin resilience, disciplers. 4:02 4 minutes, 2 seconds A brief on the financial performance for the quarterm consolidated total income was 4930 crores against 4847 4847 crores 4:10 4 minutes, 10 seconds last year same period PBT was 181 against 343 crores same year last period and net profit was 113 crores versus 23 4:18 4 minutes, 18 seconds 236 crores last year for the year entered 31st March 26 consolidated total income was 14483 against 15737 last year 4:27 4 minutes, 27 seconds PBT was 557 versus 1191 last year and net profit was 377 7 versus 834 crores last year. A bit of detail on the 4:36 4 minutes, 36 seconds segments. Uh with regard to segment A which is the UCP segment, segment A was primary driven by the RAC business where Voltas further strengthens his market 4:44 4 minutes, 44 seconds leadership position. Boltas continues to deliver continues to lead over the number two player reinforcing the company's strong brand equity, extensive 4:52 4 minutes, 52 seconds distribution reach and consistent execution strength across markets. FYI26 marked a significant transformation phase for the Volta schooling business. 4:59 4 minutes, 59 seconds The company undertook a comprehensive refresh of its RAC portfolio with sharper focus on featureless energy efficient intelligent cooling 5:07 5 minutes, 7 seconds technologies and differentiated consumer experiences. Anchored in customercentric innovation, Voltas launched its summer 5:13 5 minutes, 13 seconds 2026 portfolio led by AI powered vertic split AC series with features like AI adaptive cooling, AI geo fencing, AI 5:23 5 minutes, 23 seconds energy manager designed for the discerning Indian consumer. This was complemented by the repositioned her voltage campaign which strengthened the 5:31 5 minutes, 31 seconds brand's emotional connect with Indian consumers while modernizing its appeal for younger and aspirational households. 5:37 5 minutes, 37 seconds Alongside product innovation, Voltas accelerated investments across branding, marketing, consumer communication, retail visibility, char engagement and 5:46 5 minutes, 46 seconds financial accessibility to enhance conversion and strengthen market presence across geographies. These transformation initiatives helped gold 5:54 5 minutes, 54 seconds deliver one of the highest ever sales months in its history during March 2026. 5:59 5 minutes, 59 seconds Within segment A, commercial air conditioning delivered strong performance supported by healthy mix of product and AMC business. Sustained 6:07 6 minutes, 7 seconds urbanization infrastructure investments and rapid growth in digital infrastructure continue to drive a strong pipeline for the CAC business 6:14 6 minutes, 14 seconds positioning it for robust long-term growth. Commercial refrigeration also delivered a steady quarter while continuing to focus on institutional 6:22 6 minutes, 22 seconds sales expansion, channel development, customer diversification, and introduction of new product lineups. 6:28 6 minutes, 28 seconds CACR and AR continue to play an important role in deepening UCP's diversification and reducing dependence on seasonal room schooling demand. 6:38 6 minutes, 38 seconds However, margins during the quarter were impacted by commodity inflation and currency depreciation. These pressures were partially mitigated to 6:45 6 minutes, 45 seconds comprehensive cost reduction and value engineering program encompassing improved sourcing, deeper localization, targeted decide innovations and manufacturing efficiencies. Recent 6:54 6 minutes, 54 seconds geopolitical conflicts and war related disruptions created volatility and raw material availability, logistics, energy cost and currency markets. Voltas 7:02 7 minutes, 2 seconds successfully navigated these challenges through a combination of structural preparedness and tactical agility ensuring uninterrupted production and 7:10 7 minutes, 10 seconds market servicing. The company now enters the current season with a more clear defined segmentation strategy, refreshed product mix, sharper premium 7:19 7 minutes, 19 seconds positioning, and refreshed marketing campaigns with new celebrity brand ambassadors tailored for diverse customer segments across geographies. At 7:27 7 minutes, 27 seconds the same time, manufacturing investments undertaken over the last two years are now beginning to deliver tangible operational benefits. The Chennai and Punaggar manufacturing facilities are 7:36 7 minutes, 36 seconds currently operating at better utilization levels as compared to previous year. Voltage continues to accelerate investments in factory automation, manufacturing optimization, 7:44 7 minutes, 44 seconds warehouse rationalization, and integrated inventory planning to further improve responsiveness, supply chain resilience, and cross competitiveness. 7:50 7 minutes, 50 seconds Together, these initiatives are expected to deliver improved margin realization and reinforce Voltas' leadership across Indian cooling space. 7:59 7 minutes, 59 seconds Voltec Voltec continues to play a strategic role in Voltas' long-term vision of building a scaled and diversified consumer durable platform 8:07 8 minutes, 7 seconds with a 8.6% 6% year-to- date market share in washing machine segment and 6.2% in refrigerators in a sluggish market. Over the last year, Volv has 8:16 8 minutes, 16 seconds accelerated its transformation journey through sharper portfolio premiumization, deeper localization, expanded channel reach, and stronger 8:24 8 minutes, 24 seconds consumer engagement initiatives aimed at strengthening its position in the highly competitive home appliances market. 8:29 8 minutes, 29 seconds Continuing with his philosophy of delivering smart technology, superior cooling performance and longlasting durability, Voltec introduced enhanced 8:37 8 minutes, 37 seconds products features in the frosty representative segment with improved energy efficiency, design, aesthetics, storage innovation and consumer convenience features in the fully 8:46 8 minutes, 46 seconds automatic segment machine category. The company launched in innovation-ledd product ranges featuring advanced hygiene wash technologies, energy smart 8:54 8 minutes, 54 seconds solutions and differentiated consumer centric features tailored for evolving Indian consumers. 8:59 8 minutes, 59 seconds Alongside product innovation, Boldte continues to strengthen its brand mix strategy supported by expanded retail presence, deeper channel penetration, 9:07 9 minutes, 7 seconds enhanced in store visibility and stronger consumer engagement across key markets. These initiatives are steadily strengthening brand preference and 9:14 9 minutes, 14 seconds improving conversion across channels by positioning Bulpex as an increasingly relevant player in an Indian home appliances segment. A key strategic 9:22 9 minutes, 22 seconds focus during the year has been localization and manufacturing scale up at the Salins's manufacturing facility. 9:27 9 minutes, 27 seconds The company continues to deepen localization levels across key product categories, improving sourcing efficiencies and enhance manufacturing 9:36 9 minutes, 36 seconds integration to strengthen cost competitiveness and supply chain resilience. Supported by design innovations, calibrated pricing actions, 9:44 9 minutes, 44 seconds improve sales mix and ongoing cost optimization initiatives. These efforts are expected to support sustainable margin expansion while building a strong 9:52 9 minutes, 52 seconds foundation for long growth. Going forward, Volbec remains focused on expanding its energy efficient and innovation-ledd product portfolio while 10:00 10 minutes steadily scaling its distribution network and strengthening its position as an integral part of Voltas's broader home solutions ecosystem. 10:08 10 minutes, 8 seconds Segment B, electromechanical projects. 10:11 10 minutes, 11 seconds Segment B continues to play a critical role in strengthening Voltas' portfolio diversification strategy helping mitigate energy uh earnings volatility 10:20 10 minutes, 20 seconds associated with seasonal nature of core uh cooling businesses by enforcing the company's positioning as a diversified engineering and product solution 10:28 10 minutes, 28 seconds enterprise. During FI26, the business maintained strong momentum through a sharp sharper focus on execution discipline, selective order booking, 10:36 10 minutes, 36 seconds working capital management and profitable growth across both domestic and international operations. The domestic projects business continued to secure strategic orders while increased 10:45 10 minutes, 45 seconds focus on fasttrack and margin equity opportunities across high growth sectors including electronics manufacturing, industrial infrastructure, data centers, 10:53 10 minutes, 53 seconds metro and tunnel projects. These sectors continue to benefit from accelerated investments driving driven by urbanization, digital infrastructure 11:00 11 minutes expansion, localization initiatives and governmentled infrastructure development. The businesses also prioritize timely execution and project 11:08 11 minutes, 8 seconds delivery across multiple sites resulting in stronger cash flows, improved execution efficiency and enhanced profitability. Greater emphasis on 11:16 11 minutes, 16 seconds project selection, milestone based monitoring, disciplined receivables management and tighter operational controls continue to strengthen the quality of the order book and improve 11:24 11 minutes, 24 seconds overall business resilience. While the international project business geopolitical tensions within the international projects business, geopolitical tensions and Middle East 11:33 11 minutes, 33 seconds conflict created operational disruptions across travel, logistic site execution and commercial uh settlements. Despite these challenges, Voltas responded with 11:41 11 minutes, 41 seconds agility and discipline by activating dedicated crisis response teams, implemented employed safety protocols, strengthened travel controls and 11:50 11 minutes, 50 seconds evacuation readiness, and establishing a rigorous daily monitoring framework covering critical operations, liquidity and collection management and project 11:57 11 minutes, 57 seconds execution. These measures enabled the company to effectively mitigate risks while ensuring continuity across key projects and customer engagements. 12:05 12 minutes, 5 seconds During FI26, the international business also business witnessed healthy new order inflows, further strengthening the order pipeline while improved 12:13 12 minutes, 13 seconds collections, tighter controls and discipline risk management help reduce overall risk and improve operational stability within the business. As of 12:20 12 minutes, 20 seconds 31st March 2026, the total carry forward order book in segment B stood at close to 6,200 crores, providing strong revenue visibility and reinforcing 12:29 12 minutes, 29 seconds confidence in the long-term growth opportunities across domestic and international forex business. Segment C. 12:35 12 minutes, 35 seconds Segment C continues to strengthen the Volulta's engineering portfolio through a balanced mix of industrial equipment, aftermarket services, and long-standing 12:43 12 minutes, 43 seconds customer partnerships while providing stable and relatively non-essential uh revenue streams for the company. The mining and construction equipment 12:50 12 minutes, 50 seconds division delivered steady topline growth during the year supported by sustained demand for crushing and screening machinery continu continuity in 12:59 12 minutes, 59 seconds operations and maintenance uh and maintenance contracts and stable performance from the Mosambic Mozambique operations. The business continued to 13:07 13 minutes, 7 seconds benefit from infrastructure development activities, mining sector demand and increased focus on productivity enhancement across construction and material handling applications. 13:17 13 minutes, 17 seconds Alongside equipment sales, the division continued to strengthen its aftermarket and service annuity business through deeper consumer uh customer connect, 13:25 13 minutes, 25 seconds improved life cycle support and enhanced service capabilities. A healthy inquiry pipeline ex expanding service opportunities and stable operations 13:34 13 minutes, 34 seconds across key markets provided improved visibility for future growth while reinforcing the resilience of the business model. Within the textile machinery division, the business 13:43 13 minutes, 43 seconds operated in a challenging environment marked by geopolitical uncertaintity, supply chain disruptions, rising raw material cost, and cautious capital expenditure sentiment across the sector. 13:52 13 minutes, 52 seconds Despite near-term market uncertainties, the business demonstrated resilience through steady execution of pending orders, strong after sales performance 14:00 14 minutes and continued traction in the post spinning segment. The the division also continue to focus on customer retention, service responsiveness and streng 14:08 14 minutes, 8 seconds strengthening its solutions portfolio to enhance engagement in the textile manufacturers across markets. Looking 14:15 14 minutes, 15 seconds ahead ahead, policy support measures announced under union uh budget 2026 coupled with expansion of the PLA scheme and increased focus on domestic 14:23 14 minutes, 23 seconds manufacturing are expected to support gradual recovery of the co spinning category. At the same time, the business remains focused on accelerating growth 14:32 14 minutes, 32 seconds in post spinning solutions, strengthening aftermarket service revenues and improving operational efficiencies to drive uh sustainable long-term growth. In terms of balance 14:41 14 minutes, 41 seconds sheet and working capital, Voltas continues to maintain a strong and resilient balance sheet providing the financial flexibility required to uh 14:48 14 minutes, 48 seconds navigate a dynamic operating environment while simultaneously supporting strategic growth investments across businesses. The company's disciplined 14:56 14 minutes, 56 seconds financial management approach combined with prudent capital allocation and tighter operate tighter operational controls has enabled it to maintain a 15:04 15 minutes, 4 seconds healthy liquidity position despite ongoing macroeconomic and geopolitical uncertainties. During Q4 FI26, focused efforts on working capital optimization 15:13 15 minutes, 13 seconds led to a reduction in working capital borrowings. Networking capital remained tightly managed, supported by disciplined receivable corrections, payment optimization, and prudent inventory management. 15:23 15 minutes, 23 seconds Inventory levels during the quarter remain moderately elevated, primary driven by proactive readiness for the peak summer season. Strategic stocking for new product launches and 15:31 15 minutes, 31 seconds precautionary planning in response to supply chain volatility and geopolitical dis. However, the inventory buildup was calibrated and aligned with anticipated 15:39 15 minutes, 39 seconds demand trends with gradual normalization expected as seasonal demand momentum strengthens. Overall, the company exited the quarter with a balanced and well-managed working capital profile, 15:47 15 minutes, 47 seconds reinforce reinforcing its ability to support future growth opportunities while manufacturing financial resilience and operational agility 15:56 15 minutes, 56 seconds outlook and strategic direction in environment marked by continu continued geopolitical uncertaintity, 16:04 16 minutes, 4 seconds supply chain vulnerability and evolving consumer dynamics. Voltas remains firmly anchored in strategy of discipline growth, operational agility, and 16:11 16 minutes, 11 seconds long-term value creation. Over the last year, the company has undertaken transformative init initiatives across its business, including a comprehensive refresh of its product portfolio, 16:20 16 minutes, 20 seconds expanded manufacturing and localization capability, sharper brand positioning, and fresh marketing campaign, deeper channel engagement, and strong execution 16:27 16 minutes, 27 seconds discipline. These strategic initiatives are now beginning to translate into cost optimizations, operational efficiency, and business resilience. With the 16:35 16 minutes, 35 seconds ongoing season, the company remains optimistic about demand trends across product categories supported by improved consumer sentiment, increasing premiumization, rising urbanization, and continued infrastructure in investments. 16:47 16 minutes, 47 seconds Across the cooling business, Volta's refreshed RAC portfolio, differentiated product positioning, intelligent cooling technologies, and expanded distribution 16:54 16 minutes, 54 seconds reach are expected to further strengthen market leadership while driving a more favorable product mix and improve profitability. Voltec continues to 17:02 17 minutes, 2 seconds strengthen Voltas' long-term vision of building a scaled home appliances platform through premiumization, product innovation, deeper localization at the 17:10 17 minutes, 10 seconds Son manufacturing facility and expanding uh retail and channel presence across markets. These initiatives are expected to steadily improve band presence, 17:19 17 minutes, 19 seconds market penetration and operate leverage over the medium term. Within the project's business, the company remains focused on selective order booking, execution, excellence, cash flow 17:27 17 minutes, 27 seconds discipline, and strengthening project profitability across both domestic and international corporations. Across businesses, cost optimizations continues 17:35 17 minutes, 35 seconds to remain a strategic priority with sustained focus on sourcing efficiencies, design, innovation, localization, manufacturing productivity, and operating leverage 17:43 17 minutes, 43 seconds aimed at protecting margins and improving profitability. Thank you. 17:52 17 minutes, 52 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 17:59 17 minutes, 59 seconds star and one on the touchstone survey phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested 18:09 18 minutes, 9 seconds to please limit your question to one per participant and to use handsets while asking a question. Ladies and gentlemen, 18:16 18 minutes, 16 seconds we will wait for a moment while the question queue assembles. 18:25 18 minutes, 25 seconds The first question is from the line of sukil from eyesight private limited. Please go ahead. 18:31 18 minutes, 31 seconds Good evening to the team. I have two questions. My first question to Mr. 18:34 18 minutes, 34 seconds management. Uh in your point of view, how is Voltaart preparing to capture future opportunities in cooling appliances and consumer durables while 18:43 18 minutes, 43 seconds thoughtfully addressing challenges such as uh rising competition, input cost pressures and evolving customer uh 18:50 18 minutes, 50 seconds choices? What strategic levers do you see as most important for sustaining growth and uh being a market leader uh 18:58 18 minutes, 58 seconds in the coming quarters? That's the first question. I'll ask my second question after this. Thank you very much. 19:04 19 minutes, 4 seconds Yeah, good evening everyone and thank you for joining our call. Uh look forward to the discussion and to answer 19:10 19 minutes, 10 seconds your first question Mr. uh with on the uh appliances business as all of you know we have a we have a a joint venture 19:18 19 minutes, 18 seconds with a company called Archelik and the product is called Volt BO. Um so what uh 19:26 19 minutes, 26 seconds this partnership uh sort of uh the strength of this partnership is that Beco is a is a world 19:35 19 minutes, 35 seconds leader in terms of um the appliances business. So the technology, the product portfolio, the engineering, the supply 19:43 19 minutes, 43 seconds chain and the manufacturing is what uh uh uh is what they bring to the table 19:50 19 minutes, 50 seconds and uh so uh yeah so so the Voltas Beco appliances that joint venture which we 19:58 19 minutes, 58 seconds have has all the ingredients of a successful marriage between two big uh 20:04 20 minutes, 4 seconds uh I would say I think two large organizations. 20:08 20 minutes, 8 seconds one on a global scale and one the largest in India. So uh they use their techn we use their technology and their 20:16 20 minutes, 16 seconds manufacturing progress and our uh very strong mode which is our distribution and understanding the Indian market that 20:24 20 minutes, 24 seconds is as far as the durable uh space is concerned. 20:29 20 minutes, 29 seconds The cooling uh as far as the air conditioning business is concerned the we are pretty as you know we have been a 20:37 20 minutes, 37 seconds leader in the space for quite some time and um the uh strength of a voltage brand uh coupled with the kind of mode 20:45 20 minutes, 45 seconds we have with respect to our uh distribution reach is phenomenal. I think that is what we continue to leverage. uh you would have noticed that 20:54 20 minutes, 54 seconds this year we have launched a series of new products which is uh more featurerich. There is a lot of new features in that like we have introduced 21:02 21 minutes, 2 seconds a lineup with AI um which essentially has features like uh as Shr mentioned in his initial address like geo fencing 21:12 21 minutes, 12 seconds like adaptive cooling and also energy manager. These are features we are always one up as far as this is concerned and we will continue to 21:20 21 minutes, 20 seconds introduce products which will uh keep us ahead of the curve. So I think this combination of u uh having the right 21:28 21 minutes, 28 seconds channel with a product which is always uh uh ahead of this curve is what will ensure we know the competition is 21:36 21 minutes, 36 seconds severe. uh this is an area which um has a lot of uh participants almost 60 brands operate in the space but I think 21:45 21 minutes, 45 seconds what we bring to the table is uh the Tata trust uh plus the fact that our distribution reach is phenomenal. Uh you 21:54 21 minutes, 54 seconds would have also noticed that we have refreshed our entire marketing campaign. 21:58 21 minutes, 58 seconds This time we had uh earlier uh Voltas had a had a different style of marketing. This year we had onboarded 22:07 22 minutes, 7 seconds two brand ambassadors, celebrity brand ambassadors uh Ranir Kapoor and Nitul Kapoor and this this is helping us in a 22:15 22 minutes, 15 seconds big way in terms of that journey towards um becoming an aspirational brand. So I think we have all the right u 22:24 22 minutes, 24 seconds ingredients to take it forward and competition play is always there and that will continue. We do not see it receding. 22:32 22 minutes, 32 seconds Thank you. My second question to Mr. uh Shir Mr. Sher is uh as Voltage continues to benefit from demand in cooling 22:39 22 minutes, 39 seconds appliances and home solutions, how are you prioritizing capital allocation between capacity expansion, R&D and uh 22:48 22 minutes, 48 seconds shareholder returns and what long-term uh cost efficiencies have been put into place to uh safeguard margins amid uh 22:56 22 minutes, 56 seconds rising input and financial cost. Thank you. 22:59 22 minutes, 59 seconds Okay. So I think uh as I highlighted in the uh the spiel voltage is a fairly 23:06 23 minutes, 6 seconds diversified business as you would have seen and I think it's it was more relevant this year to see the segment uh 23:15 23 minutes, 15 seconds segregation between the three segments in terms of the profitability. So the capital allocation is done sort of fairly diligently across the segments 23:24 23 minutes, 24 seconds while we also constantly look at the any capacity enhancements where whichever needs whether predominantly comes in the 23:31 23 minutes, 31 seconds segment A as you can make out but purely from any capital allocation or any investments required we are sort of looking at all the three segments 23:39 23 minutes, 39 seconds together because it's a fairly diversified business but from pure capex point of view it's a segment A which sort of needs periodic investments and 23:46 23 minutes, 46 seconds we are sort of doing investments from a capacity point of view, from an R&D point of view, ongoing if you see the last two years, 3 years and also this 23:54 23 minutes, 54 seconds year we plan to continue doing that in terms of the profitability angle that you're referring to. Our focus is 24:02 24 minutes, 2 seconds obviously to drive topline because what we feel is the headroom for growth within the larger cooling segment and 24:09 24 minutes, 9 seconds appliances is very high for us. We want to drive topline very very actively and in the process we hope and I'm sure we 24:18 24 minutes, 18 seconds will have the efficiencies of scale where the margin profiles would sort of margin absolute will sort of keep growing and continuing to grow on an 24:26 24 minutes, 26 seconds ongoing basis and give back shareholder value. So that's the broad strategy that we are sort of trying to work on and irrespective of the obviously we would 24:34 24 minutes, 34 seconds have seen some geopolitical tensions over the last quarter or so but Voltas as a company had started working on an active cost uh reduction program almost 24:44 24 minutes, 44 seconds 9 months back and as you see some of these programs obviously take some time for some efficiencies to come in but we are sort of seeing some of the benefits 24:51 24 minutes, 51 seconds that we has already actioned some time back we have started seeing the benefits it's also true that some of some of the benefits got offset by the inflation 25:00 25 minutes inflationary measures and also the currency impact. But the continual program for cost efficiencies is something we are trying to 25:07 25 minutes, 7 seconds institutionalize and make sure that we have a continuous program of cost improvements running. Thank you and best wishes. 25:16 25 minutes, 16 seconds Thank you. Thank you. 25:18 25 minutes, 18 seconds Thank you. Participants are requested to ple question to one participant. The next question is from the line of Manoj 25:27 25 minutes, 27 seconds Kohi from Aquarius Capital. Please go ahead. 25:31 25 minutes, 31 seconds Yeah, thanks for the opportunity sir. So my question is on the margins. If you look at the reasons that we highlighted 25:38 25 minutes, 38 seconds about commodity inflation and IR depreciation but when I look at the company level, our gross margins have 25:45 25 minutes, 45 seconds declined by only 85 basis points. But when I look at the segmental margins, there has been a bigger deterioration. 25:53 25 minutes, 53 seconds when I look at the unit products margins which are close to around 3.2% for FI26 versus 8.4% 4% in FI25 26:02 26 minutes, 2 seconds probably how we look at the margins during FI27 and 28 given that you have highlighted 26:12 26 minutes, 12 seconds about lot of measures undertaken for cost rationalizations and in fact better utilizations at both the facilities if 26:20 26 minutes, 20 seconds you can give some outlook on the margins and probably how should we model uh margins for FI 27 and 28 that's my first 26:29 26 minutes, 29 seconds question sir Okay. So thanks. I think a very relevant uh point raised. uh I think the uh 26:35 26 minutes, 35 seconds margins dilution that you see in the segment a I think predominantly as you know we have had the discussions during 26:42 26 minutes, 42 seconds the uh cost quarterly discussions also were predominantly sort of from the quarter 1 and quarter two where obviously there was a significant 26:51 26 minutes, 51 seconds overhang with regard to the summer which was a bit erratic early monsoons because of which there was a stock overhang also 26:59 26 minutes, 59 seconds in the channel and also all the manufacturers and the marketeers also had so that was a significant an impact. 27:05 27 minutes, 5 seconds So from there if you in terms of thought process that we have had what we have communicated is a progressive 27:11 27 minutes, 11 seconds improvement in the absolute margins and also gradual improvement in the profile. 27:16 27 minutes, 16 seconds So I think that is what we are actively trying to sort of work on in terms of improvement. Should it get better from the number that is sort of highlighted 27:24 27 minutes, 24 seconds in FI26? Definitely it should get better. But as you can make out the some of the challenges are fairly uh in a way 27:34 27 minutes, 34 seconds structural in the sense because of the continued issues that we having from a supply chain angle or the currency. So we are monitoring it extremely actively 27:42 27 minutes, 42 seconds uh and sort of taking corrections in terms of pricing opportunities wherever we can take we are working on all those options. We want to gradually improve 27:51 27 minutes, 51 seconds the uh uh top end line and the margin profile and sort of reach to a level which is closer to what it was uh in 28:00 28 minutes FI25. It's a gradual improvement that we see at this point of time. 28:06 28 minutes, 6 seconds Sure. So one questions on the current environment if we look at uh we are already into midsummers. How things have 28:14 28 minutes, 14 seconds progressed uh during the month of April and May? also the outlook on the current season and probably how things are 28:22 28 minutes, 22 seconds panning out at both secondary as well as primary level and how should we look at FY 27 as a year. 28:30 28 minutes, 30 seconds Yeah. So um so Manos this um the the last year this quarter was a rather weak 28:37 28 minutes, 37 seconds quarter as you know because of the uh weak summer and the uh unseasonal rains. 28:43 28 minutes, 43 seconds So we have seen a in comparison to that we are seeing a very positive traction in terms of the uh uh the first month 28:51 28 minutes, 51 seconds April and that going into May there are there's a serious heat wave in many parts of the country though there are 28:58 28 minutes, 58 seconds intermittent rains and uh uh such uh events happening in some other some some parts of the uh country. So a very 29:07 29 minutes, 7 seconds positive kind of uh uh growth we are seeing and uh the secondaries are also moving fast actually. So while as all of 29:16 29 minutes, 16 seconds you know there was a stable change which happened last uh from January onwards and most of the brands including us 29:24 29 minutes, 24 seconds started uh start started uh uh delivering the new table products into this into the channel network from from 29:32 29 minutes, 32 seconds the month of March which had taken a price increase also there was a five to 10% price increase in three star and five star and uh there is a further 29:41 29 minutes, 41 seconds price increase which is going on because of the commodity thing But I think the saving rate in organs was compared to last summer. This summer the GST rate 29:50 29 minutes, 50 seconds has come down from 28 to 18%. So the impact on the u there it is there is 29:58 29 minutes, 58 seconds some cushioning of the impact. There is still an impact but uh it's it it's been the the enormity of that impact has been 30:07 30 minutes, 7 seconds softened a little bit because of the GST reduction which is which couldn't have come at a better time than now you know 30:13 30 minutes, 13 seconds so we seeing very positive growth uh this quarter manoj indication on the blended price that we 30:22 30 minutes, 22 seconds would have taken so far or the new models the uh actually each model like uh as 30:29 30 minutes, 29 seconds far as the first round of uh increases was concerned. It was a 5% for the uh so blended was something something like a 7 30:38 30 minutes, 38 seconds 8% because uh the three star is the larger portion uh and the uh five star is around 25% 30:46 30 minutes, 46 seconds 70 odd percentages is the three star. So a blended of 78 was only on account of 30:52 30 minutes, 52 seconds the uh uh the table change. There was in addition there was some other impact 31:00 31 minutes because of the copper and commodities going on going up even before the war started you know so there that also played a role so there has been another 31:08 31 minutes, 8 seconds one or two% which we have further increased and uh as of now uh last month we had again taken an increase because 31:15 31 minutes, 15 seconds of all this dollar devaluation and all the rupee devaluation and so on and so forth. So uh the the trend is certainly 31:24 31 minutes, 24 seconds on a upward trajectory but uh the only saving grace was that that reduction in GST which was tantamount to a 7.8% on 31:34 31 minutes, 34 seconds selling price 10% reduction is equal to 7.8% It was a non M OP that was that was a welcome thing it otherwise the entire 31:43 31 minutes, 43 seconds affordability thing would have really led to a contraction of demand for we are not seeing that at all now 31:51 31 minutes, 51 seconds may request Mr. runners to please rejoin the queue. We have participants waiting for return. Thank you. Ladies and gentlemen, we will request you to please 31:59 31 minutes, 59 seconds limit your question to one per participant. The next question is from the line of Natasha Jen from Philip Capital. Please go ahead. 32:07 32 minutes, 7 seconds Thank you for the opportunity. Ladies and gentlemen, you mentioned in your press release that March has been the strongest month for you. Now, we understand that there was a lot of 32:16 32 minutes, 16 seconds inventory pushing in March brought by the industry itself. April at least in midappril it wasn't the best of season in terms of rains and now you've 32:24 32 minutes, 24 seconds mentioned that secondaries have picked up very well but against that uh what at least we have seen is that primaries primaries are still soft and um in terms 32:34 32 minutes, 34 seconds of the price hike also what I've understood is the newer price hike inventory is probably still not passed 32:40 32 minutes, 40 seconds on to the trade so on that backdrop um how do you see margins in this quarter given this is the most important quarter 32:48 32 minutes, 48 seconds and any cost escalation from yours do you think that may dent the demand itself for the season? Thank you sir. 32:56 32 minutes, 56 seconds So uh the way I say you you said it right actually the um uh what happened was there was a uh if you if you recall 33:05 33 minutes, 5 seconds in the month of December the channel had stocked up heavily on the old table and that had taken the December uh the 33:13 33 minutes, 13 seconds January and the February sales were a little mellow. March was a superb month. 33:19 33 minutes, 19 seconds It was a record high in our entire history, you know. So we hit a very high number and uh April also we have almost 33:27 33 minutes, 27 seconds uh done very close to that number. So April has also been extremely buoyant. 33:32 33 minutes, 32 seconds May is also looking good. uh in any kind of a price increase with the channel uh the when there is a price increase with 33:41 33 minutes, 41 seconds the channel the the first tendency of the channel is to hold back on the uh purchase assuming that things will uh 33:49 33 minutes, 49 seconds come down but when the secondaries start picking up and then they feel there is a likely shortage the secondaries start 33:56 33 minutes, 56 seconds picking up so we seeing a similar trend in the month of May also the high price the higher price products are now started getting absorbed by the channel 34:05 34 minutes, 5 seconds and we feel that this quarter will be a very good quarter. Natasha sorry to interrupt may we request Miss Natasha Jan to please rejoin the queue. 34:15 34 minutes, 15 seconds Thank you. The next question is from the line of Omang Ma from Kotek securities. Please go ahead. 34:21 34 minutes, 21 seconds Hi uh thanks for the opportunity. My question was again on margins. So from what we understand fourth quarter uh would have seen some old cost inventory 34:30 34 minutes, 30 seconds right the bulk of the cost inflation which we've seen uh will likely hit you in one Q so in that context I would like 34:38 34 minutes, 38 seconds to know what was the impact of this FX losses which is around 55 cr in second half how much of it hit you in fourth 34:45 34 minutes, 45 seconds quarter uh how much was the incremental spend on uh marketing or brand uh uh ambassadors that you called out and uh 34:53 34 minutes, 53 seconds the price that you've taken what conviction do we have of seeing it improve from here going forward? Thank you. 35:03 35 minutes, 3 seconds Okay. So on the uh on the spent uh part uh sorry first on the uh split on the uh 35:11 35 minutes, 11 seconds old inventory new inventory for Q4 as you know uh we had opportunities to continue sort of selling the old inventory uh during the first half. So 35:20 35 minutes, 20 seconds we sort of consumed pretty much the entire older inventory by around the first four to 6 weeks of the quarter. So and after that is when we started 35:28 35 minutes, 28 seconds selling the uh new inventory. Uh you're right in terms of cost obviously the mix was uh there between the old and new 35:36 35 minutes, 36 seconds during the quarter. So it was not entirely a new uh table only during the quarter. So you're right from that angle. uh as far as the uh the impact of 35:46 35 minutes, 46 seconds the uh I think I've elaborated the fact that we have had a few rounds of uh corrections that has happened in terms of some of the inflationary measures 35:54 35 minutes, 54 seconds that took place even before the crisis that we had in the Middle East. Even then uh some of the uh commodity prices 36:01 36 minutes, 1 second increase are there and it got sort of compounded because of subsequent increases and the currency devaluation in in during March. So there was a 36:09 36 minutes, 9 seconds multiple impacts that had sort of got happened which impacted the margins for the quarter. We are progressively sort 36:17 36 minutes, 17 seconds of passing on as Mr. Manin mentioned in terms of the pass of the uh price increases that we call pass on uh it's 36:24 36 minutes, 24 seconds sort of uh settling down in terms of the price increase. I think that is where we are at this point of time. Uh in terms of the uh marketing uh it was sort of 36:33 36 minutes, 33 seconds managed within the overall marketing pool. no specific sort of uh it was sort of comparable to what we have been 36:40 36 minutes, 40 seconds spending from a marketing side. Nothing separate that we had to sort I mean obviously we spent on the uh brand brand ambassadors but nothing sort of uh out of the ordinary. 36:52 36 minutes, 52 seconds Thank you. The next question is from the line of K Panda from IC Life Insurance. Please go ahead. 37:01 37 minutes, 1 second Uh thank you for the opportunity. uh just one question uh on the uh profitability side. So you mentioned uh 37:08 37 minutes, 8 seconds uh blended 56% kind of price hike. I believe inflation is much higher. So just want to reconcile 37:15 37 minutes, 15 seconds uh the uh your statement that we will try to achieve FI25 profitability is more of aspiration. So how should we see profitability journey for FI27? 37:29 37 minutes, 29 seconds So, so essentially the uh the the blended one of five and 10% increase was purely on account of the table change 37:38 37 minutes, 38 seconds the new table products. In addition, we had taken another rate increase for the commodity prices which had gone up 37:45 37 minutes, 45 seconds pre-war also. And now those as this our stock of those old materials get over we going forward we are watching the 37:53 37 minutes, 53 seconds pricing we the price increase that we are seeing is quite significant as you had rightly mentioned and uh when the uh 38:03 38 minutes, 3 seconds we as well as all other brands who are in this space have to start using those new commodity prices for the products. 38:12 38 minutes, 12 seconds Uh I think this will be a part for most of the brands. I do not see a challenge there. Uh that number can be 38:20 38 minutes, 20 seconds significantly higher. We don't want to get that number now because uh many of the things like the uh dollars, the 38:27 38 minutes, 27 seconds plastics, the aluminium for example, the copper, the gas, all those are moving multiple movements are happening and I 38:35 38 minutes, 35 seconds completely agree that these numbers are not by any stretch of imagination uh a small number. We are seriously talking 38:42 38 minutes, 42 seconds about double double digit uh inflation and it will get passed through as and when the uh costs start feeding us. 38:51 38 minutes, 51 seconds Understood. Just one clarification on that. So um you you think that you can go back to FI 25 margin 20 FI 27 itself. 39:02 39 minutes, 2 seconds Uh this is a progressive movement that we are doing. So compared to those years which was FI25 I think it is a it will 39:11 39 minutes, 11 seconds be a gradual step up. We have as Cinder was mentioning we are very very clear about the overall quantum of gross 39:19 39 minutes, 19 seconds margin that we generate and being in a leadership position. Uh we just want to uh uh sort of uh keep that as our goal 39:29 39 minutes, 29 seconds rather than look at percentage gross margins is probably not driving us you know. So that is that is the way it is the quantum of gross margin is where we 39:37 39 minutes, 37 seconds are looking at and u from whatever we saw in the last financial year while the secondary market share uh is uh uh 39:47 39 minutes, 47 seconds showing a little different picture we have primary market share data which shows that between us and the next cluster of four brands actually there 39:56 39 minutes, 56 seconds after us there is a gap of 5.1% between us and the next cluster of four brands so that's the kind of lead that we have 40:04 40 minutes, 4 seconds establish lish this year and that will hold us in goodstead in terms of overall margin profitability margin quantum 40:11 40 minutes, 11 seconds maximization actually that's the way we see it yeah sorry to interrupt may request Mr. KO to please rejoin the queue. We have 40:19 40 minutes, 19 seconds participants reading for the turn. Thank you. The next question is from the line of Adita Bhartya from Invest. Please go ahead. 40:27 40 minutes, 27 seconds Um hi sir. Uh just one part on on again hopping on this concentration point. Um 40:35 40 minutes, 35 seconds have the increased costs related to war started hitting us or do you think uh they'll start impacting us uh in some 40:42 40 minutes, 42 seconds time? uh and uh have we taken any further price increase in response to that or do you think that first quarter 40:51 40 minutes, 51 seconds margins can dip significantly uh before we start taking those price increases and just a related question uh in in 40:59 40 minutes, 59 seconds this particular quarter we have seen unallocated quarts going up very sharply uh so so what could be the reason for 41:05 41 minutes, 5 seconds that so uh clear so the first part of the 41:13 41 minutes, 13 seconds question. Uh so the this quarter I think it will be a mix of the costs some of the cost the pre uh war reserve is the 41:22 41 minutes, 22 seconds post again for a different reason it will also be a mix so it will be sort of progressive as Mr. Menon mentioned we have passed on certain price increases 41:31 41 minutes, 31 seconds and we are monitoring the price situation also very actively and we will be open to sort of pass on any further price increases that need to be done. As 41:39 41 minutes, 39 seconds mentioned our intent is to progressively work on the top line and the margin profile. It will be a progressive improvement. We not expecting any sharp 41:47 41 minutes, 47 seconds downturn in terms of uh in terms of the margin profile for the quarter. 41:57 41 minutes, 57 seconds Yeah, sorry. The second question was on the analytic. Okay, that was primarily because of the forex uh impact and the uh the mark to market from the treasury. 42:08 42 minutes, 8 seconds Thank you. 42:10 42 minutes, 10 seconds Thank you. The next question is from the line of Reo Pavllia from Capital. Please go ahead. 42:18 42 minutes, 18 seconds Yeah. Hi. Uh good evening team. Um just a couple of clarifications. Will it be possible for you to quantify the exact price action that you have taken at 78% 42:26 42 minutes, 26 seconds plus couple of price hike 1 to 2% in the second round and what is the gap in terms of you mentioned double digit 42:33 42 minutes, 33 seconds price hike could be expected um to fill up this gap so a if you can quantify these numbers second um can you share 42:41 42 minutes, 41 seconds what was the volume for RC for us for fiscal uh 26 and lastly um can you share 42:48 42 minutes, 48 seconds with us what is the broad mix of the MAP all the book between domestic and international. 42:54 42 minutes, 54 seconds Yeah. So uh yeah thank you Reu. This is the first one about the price actions that we have taken. I'd mentioned about 43:02 43 minutes, 2 seconds the new table we have taken a 5% for the three star a 10% for the fivestar and then we have outped up with a 2 to 3% 43:10 43 minutes, 10 seconds increase uh for certain uh on account of the uh of the copper pricing copper 43:17 43 minutes, 17 seconds impact um overall this has been increased the next round of uh increase will depend on how the overall prices 43:26 43 minutes, 26 seconds stabilize actually so uh it it it depends on uh how the war situation goes 43:33 43 minutes, 33 seconds and how are the how the dollar react rupee dollar goes. So we we are watching it almost on a weekly basis. So at this 43:41 43 minutes, 41 seconds point in time uh it looks as I said doubledigit numbers but it's for us it it will all depend on how how the 43:49 43 minutes, 49 seconds situation goes and it also depends on uh how soon the current stocks of our commodities and material that we have 43:58 43 minutes, 58 seconds runs out you know so based on that we will be uh we we will have to take price action. So uh difficult to say a number 44:06 44 minutes, 6 seconds at this point in time. We'll have to purely go by how the how the uh material cost start hitting us and progressively 44:14 44 minutes, 14 seconds it'll get passed through. On the second thing on the volume we have done 2 2.25 44:21 44 minutes, 21 seconds million units last year which is uh this is what I said there's a a gap of roughly 5.1% between us and the nearest 44:30 44 minutes, 30 seconds bunch of four competitors. All of them are within 10,000 machines of each other. But the lead is becoming 44:37 44 minutes, 37 seconds increasingly large between us and the number two group. So that is on the volume. order book between international 44:44 44 minutes, 44 seconds and domestic is 6,200 crores and um uh that it's it's it's a it's a very 44:51 44 minutes, 51 seconds healthy order book that we have and um with a very uh very prudently selected 44:58 44 minutes, 58 seconds order mix uh uh which which will deliver very robust profitability to us going forward. 45:07 45 minutes, 7 seconds Thank you. The next question is from the line of Akshin Takar from Fidelity. Please go ahead. 45:13 45 minutes, 13 seconds Yeah. Hi sir. I had couple of questions on the electro mechanics. I'm sorry to interrupt you Mr. Tucker. We are unable to hear you clearly sir. 45:21 45 minutes, 21 seconds Is this better? Yes. 45:24 45 minutes, 24 seconds Sorry. Uh on the electromechanical projects business. Could you just help us understand in the international or on 45:32 45 minutes, 32 seconds domestic businesses have you had any clients call out post major? That was question one. And question two was uh 45:40 45 minutes, 40 seconds you know historically we've seen some margin volatility when material prices goes up. Uh any read through from the 45:49 45 minutes, 49 seconds past cycles where you know you saw metal prices move up as sharply as that did. 45:55 45 minutes, 55 seconds Uh two questions on that and I had one more on UCD which I'll follow up after. 46:00 46 minutes The second the second one t the first one was electromechanical projects. I understood what your question is. The second one is on what I think that is. 46:08 46 minutes, 8 seconds Yeah. 46:09 46 minutes, 9 seconds So the first one was a force measure being listing and the second one was what happens to margins in that segment because you have mid-level margins and 46:17 46 minutes, 17 seconds then commodities have been volatile. So do you expect volatility in the margins in the project business as well? 46:24 46 minutes, 24 seconds Uh yeah so essentially on the we have not had any clients even internationally or domestic u have any post measure 46:33 46 minutes, 33 seconds applied. So we there is nothing of that sort. For a short period in the in Qatar there was uh the contractors were given 46:40 46 minutes, 40 seconds the uh opportunity for using force measure for a short period of time which got revoked. So nobody has used it and we have not affected in any which way. 46:50 46 minutes, 50 seconds As far as um um domestic of course none of the nothing nothing of that sort has happened and uh we do not see any impact 47:00 47 minutes on the margins for the MEP segment because uh uh one is uh almost like 40 to 50% of our project uh MEP order book 47:10 47 minutes, 10 seconds in India and some of them even in international has have got a proper price variation clause. So any variation 47:17 47 minutes, 17 seconds in terms of commodities, materials as well as for labor gets it's a pass through thing. So we do not see that 47:25 47 minutes, 25 seconds impacting in any which way. So that's in a very safe zone. There's nothing to worry on that actually. 47:31 47 minutes, 31 seconds Excellent. One last question from my side on the uh judy product business. uh you know you've been kind to share the 47:40 47 minutes, 40 seconds kind of price hikes that have been taken and you did mention that you don't see impact on uh margins but you know the problem for 47:49 47 minutes, 49 seconds us as investors right now is to gauge what is the level of margins from which you are making that commentary because 47:56 47 minutes, 56 seconds normative margins have been maybe 88 8 and a half this year's margins have been three and a half so when you say you don't expect margin pressure what is the 48:04 48 minutes, 4 seconds level from which you are making that commentary yeah so uh Mr. Tak the things as I said 48:11 48 minutes, 11 seconds the uh overall u uh margin uh percentage profile will gradually inch up towards 48:20 48 minutes, 20 seconds the u uh towards what we said is that uh number of fi25 how many quarters it takes it depends on how the overall 48:29 48 minutes, 29 seconds market uh uh see the essentially in this kind of thing the demand plays a very big role what if you were to step back 48:37 48 minutes, 37 seconds for a year for a for a minute and then see what is the what what brought us to that high margin profile a good margin 48:46 48 minutes, 46 seconds profile in FI25 was the demand what caused the pain in terms of the reduction in the margin profile was 48:53 48 minutes, 53 seconds again demand the first one was high demand the second one was poor demand now this is one of the most important 49:00 49 minutes factors so uh to my mind the commodity volatility uh the uh the changes in 49:07 49 minutes, 7 seconds prices for all these things uh will generally get passed through by every single uh all brands including us. What 49:17 49 minutes, 17 seconds will what will really affect is the demand. Now if if the war continues and if there is uh there is an inflationary 49:26 49 minutes, 26 seconds trend and the affordability of this product there is a contraction in demand the margin we will take much longer for 49:34 49 minutes, 34 seconds us to inch up. But if there is a uh the the heat the summer the the impact of the summer there is a uh the there is 49:43 49 minutes, 43 seconds the affordability is not very badly affected and the third most important variable between brands 49:50 49 minutes, 50 seconds is who got stocks to be able to service the channel partner. So uh on uh it the first two is the equalizer for 49:59 49 minutes, 59 seconds everybody. The third one we seem to be in a much better place since we are much better prepared in terms of our 50:06 50 minutes, 6 seconds inventory to take care of the uh peak peaking in demand. So we seem to be at least a few steps ahead of most of the 50:13 50 minutes, 13 seconds competitors and that will that that will play a positive role in that linking up as and when it happens but it's a pure 50:20 50 minutes, 20 seconds demand supply uh issue you know so we'll have to play it by that. 50:27 50 minutes, 27 seconds Thank you. The next question is from the line of Sadhhat beer from Nomura. Please go ahead. 50:32 50 minutes, 32 seconds Yeah, thanks for the opportunity. Uh first is on the AC volume. So how much uh was the volume for the entire year in 50:39 50 minutes, 39 seconds FI26 if you can highlight and what are you thinking about the next year? Uh and uh in terms of uh the CR and CAC if you 50:48 50 minutes, 48 seconds can also highlight the contribution for this quarter. Uh and we had talked about some challenges in the CR side as well 50:55 50 minutes, 55 seconds in the past. So has that sort of achieved the normal margin levels or you think it will take a bit more to uh improve there? 51:06 51 minutes, 6 seconds Yeah. So that the last year actually the overall industry had a difficult year. 51:11 51 minutes, 11 seconds So uh I I think the industry saw a degrowth of something like 10 12% is what the best guess is. Last year the 51:19 51 minutes, 19 seconds primary sales of all brands put together was 14.3 million units. Actually that was the total number and um 51:27 51 minutes, 27 seconds uh this includes all the brands the 60 brands so out of which there there are 12 of them are big brands and the rest of it is a bunch of other brands. 51:37 51 minutes, 37 seconds Now projection for going forward this will certainly uh expected to grow at least 15 to 20% is what we feel because 51:45 51 minutes, 45 seconds the last year base was a little weak. So that's on the room AC. As far as the commercial refrigeration was concerned, last year has seen a degrowth of roughly 51:54 51 minutes, 54 seconds around the industry has seen a degrowth uh of roughly 5%. Uh Sidash if you know the commercial refrigeration is also a 52:02 52 minutes, 2 seconds product which is a high impact on the intensity of the summer. For example, the product like deep freezers has got a 52:10 52 minutes, 10 seconds uh uh direct relevance to the heat because the ice cream uh freezer demand starts peaking when there is the 52:17 52 minutes, 17 seconds temperatures are high and it it reduces when the temperatures are not as good. 52:22 52 minutes, 22 seconds So the people uh even the OEMs the big Amul the Wadil the have or the world aron all of them stop buying freezers 52:31 52 minutes, 31 seconds when they see the season is not going too well. Same is the case with VC coolers. Vissy coolers is a beverage 52:38 52 minutes, 38 seconds cooler which we give to all for storing of beverages. Um and there again there is a direct linkage to the summer. So 52:47 52 minutes, 47 seconds both these categories saw major dip last year and that was because of the season 52:53 52 minutes, 53 seconds unseasonal rains. So uh so here again it is a pure function of summer. If the summer is strong and this year we are 53:01 53 minutes, 1 second seeing a good summer. So this category also is likely to grow upwards of 10% at least if not more. Commercial air 53:09 53 minutes, 9 seconds conditioner is another category which has no relevance to the intensity of the summer. It's purely a B2B business 53:17 53 minutes, 17 seconds driven by uh the air conditioning requirement of offices uh uh restaurants 53:25 53 minutes, 25 seconds uh whether it's health clubs, spars, boutiques, all these kind of things. 53:29 53 minutes, 29 seconds This is and then of course there is a big segment which is coming up for the commercial AC is the manufacturing sector which is growing very rapidly in 53:37 53 minutes, 37 seconds India. So a lot of manufacturing uh play is coming in where we are getting a lot of inquiries for the manufacturing thing. So uh this is another category 53:46 53 minutes, 46 seconds which the industry will grow by at least 12 to 15%. And we are as a brand are 53:54 53 minutes, 54 seconds underleveraged in this and we see a huge headroom for us to grow and we are working on that. So whatever our CFO Mr. 54:03 54 minutes, 3 seconds Krieza said is capex requirements judiciously which we put in quite quite a lot of that is going into the 54:11 54 minutes, 11 seconds commercial air conditioning where we see a huge headroom for us to grow because uh the kind of traction that we are seeing in this space and the fact that 54:20 54 minutes, 20 seconds we are under underleveraged in this is going to be a growth this is likely to be the next growth engine for for in 54:27 54 minutes, 27 seconds addition to our core strength of the room air conditioners and commercial refrigeration Thank you. The next question is from the line of Pravin Sahai from Prabodafada. 54:39 54 minutes, 39 seconds Please go ahead. 54:40 54 minutes, 40 seconds Yeah, thank you for opportunity. Few uh you know data points uh required sir. uh the first is uh how is the channel 54:48 54 minutes, 48 seconds inventory in the RAS right now if uh in terms of month or days you can uh uh you know give secondly on the your order 54:57 54 minutes, 57 seconds book in the project which is a 6,200 cr how much is the domestic contribution and uh thirdly how is the Chennim 55:05 55 minutes, 5 seconds Chennai facility uh operating at because you had highlighted that uh the utilization level has improved from last 55:12 55 minutes, 12 seconds year previous year uh at what level of utilization Yeah, thank you. Good. Quickly to give you the channel inventory is dropped 55:20 55 minutes, 20 seconds dramatically. It is less than 45 days now. Probably closer to 30 days the way we see it. The order book 6,200 4,500 is 55:30 55 minutes, 30 seconds domestic and the rest of it is uh international. The Chennai factory is now uh built up to a capacity of 1.5 55:38 55 minutes, 38 seconds million units. So which is roughly uh uh 1.2 2 lakh machines per a month is what is happening. So overall around 14 to 15 55:46 55 minutes, 46 seconds lakh is what we are doing. We have increased the capacity from 1 million last year to one and a half million during this year so that we can meet the 55:54 55 minutes, 54 seconds demand and we will wait for another two years before we one to two years more before we do our next investment. We 56:02 56 minutes, 2 seconds build this factory for 2 million. All that we have to do a small capit to increase the capacity from one and a half 1.5 million to 2 million. So we 56:11 56 minutes, 11 seconds almost ready for that and once the demand uh trajectory is visible we will do that sec third round of investment. 56:18 56 minutes, 18 seconds Right now it is delivering 1.2 lakh units a month average uh on an annual basis roughly around uh 1.5 million. 56:28 56 minutes, 28 seconds Thank you ladies and gentlemen. Due to time constraints that was the last question for today. I now hand the conference over to management for closing comments. 56:43 56 minutes, 43 seconds Thank you. Thanks for all your questions and uh the discussion. Uh just to summarize uh as WTAS moves forward, the 56:50 56 minutes, 50 seconds company remains encouraged by the strong momentum across its businesses and significant opportunities emerging across schooling, home appliances, engineering products and projects. 57:01 57 minutes, 1 second Voltas has completed a structural transformation exercise across business verticles, portfolio, product portfolio, 57:08 57 minutes, 8 seconds channel expansion, cost optimization, supply chain and business processes which should help WTA to strengthen its 57:16 57 minutes, 16 seconds leadership in the cooling segment while steadily evolving into a scaled future ready home appliances and engineering solutions enterprise. Thank you all for the discussion. Thank you. 57:28 57 minutes, 28 seconds Thank you ladies and gentlemen on behalf of ICA Securities Limited that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.