Q1 2027 Bajaj Electricals Ltd Earnings Call

August 6, 2026

Speaker #1: Ladies and gentlemen, good day and welcome to the Bajaj Electricals Q1, FY27 earnings conference call hosted by ICICI Securities Limited. As a reminder, all participants' lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Operator: Ladies and gentlemen, good day, and welcome to the Bajaj Electricals Q1 FY27 earnings conference call hosted by ICICI Securities Limited. As a reminder, all participants' lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand over the conference to Mr. Aniruddha Joshi from ICICI Securities Limited. Thank you, over to you, sir.

Speaker #1: Should you need assistance during this conference call, please signal and operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded.

Speaker #1: I now hand over the conference to Mr. Anirudh Joshi from ICICI Securities Limited. Thank you, and over to you, sir.

Speaker #2: Yeah, thanks, Parij. On behalf of ICICI Securities, we welcome you all to Q1, FY27 results conference call of Bajaj Electricals Limited. We have with us today Senior Management Represented by Mr. Shekhar Bajaj, Chairman Mr. Sanjay Sajdewa, Managing Director and CEO; Mr. Vishal Chaddha, COO, Consumer Products; Mr. Rajesh Naik, COO, Lighting Solutions; and Mr. Ashwin Anand, CFO.

Aniruddha Joshi: Yeah. Thanks, Pari. On behalf of ICICI Securities, we welcome you all to Q1 FY27 results conference call of Bajaj Electricals Limited. We have with us today senior management represented by Mr. Shekhar Bajaj, Chairman, Mr. Sanjay Sachdeva, Managing Director and CEO, Mr. Vishal Chadha, COO, Consumer Products, Mr. Rajesh Naik, COO, Lighting Solutions, and Mr. Ashween Anand, CFO. Now, I hand over the call to the management for initial comments on the quarterly performance, then we will open the floor for question and answer session. Thanks, over to you, Shekhar, sir.

Speaker #2: 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.

Speaker #2: Thanks, and over to you, Shekhar sir.

Speaker #3: Thank you. Good evening, ladies and gentlemen. I'm Shekhar Bajaj. It's a pleasure to welcome you to our Q1, FY27 earnings call. We hope you've had an opportunity to review our financial results and earnings presentation.

Shekhar Bajaj: Thank you. Good evening, ladies and gentlemen. I'm Shekhar Bajaj. It's a pleasure to welcome you to our Q1 FY27 earnings call. We hope you've had an opportunity to review our financial results and earnings presentation, both of which are now available on the stock exchanges. It gives me great pleasure to say that we started FY27 on an encouraging note. From an industry and macroeconomic perspective, the quarter played out against a backdrop of continued input cost inflation, uneven summer demand across categories, and the industry largely seeing calibrated price hikes. Against that environment, our team stayed laser-focused on execution, consolidating the channel, driving cost efficiency, and strengthening the foundation we built through FY26. The result is visible in our performance this quarter and gives us immense optimism for the road ahead. I'm glad to report that this quarter reflects exactly in that direction.

Shekhar Bajaj: Thank you. Good evening, ladies and gentlemen. I'm Shekhar Bajaj. It's a pleasure to welcome you to our Q1 FY2027 earnings call. We hope you've had an opportunity to review our financial results and earnings presentation, both of which are now available on the stock exchanges. It gives me great pleasure to say that we started FY2027 on an encouraging note. From an industry and macroeconomic perspective, the quarter played out against a backdrop of continued input cost inflation, uneven summer demand across categories, and the industry largely seeing calibrated price hikes. Against that environment, our team stayed laser-focused on execution, consolidating the channel, driving cost efficiency, and strengthening the foundation we built through FY2026. The result is visible in our performance this quarter and gives us immense optimism for the road ahead. I'm glad to report that this quarter reflects exactly in that direction.

Speaker #3: Both of which are now available on the stock exchanges. It gives me great pleasure to say that we've started FY27 on an encouraging note.

Speaker #3: From an industrial macroeconomic perspective, the quarter played out against a backdrop of continued input, cost inflation, uneven summer demand, across categories, and the industry largely seeing calibrated price hikes.

Speaker #3: Against that environment, our team stayed laser-focused on execution consolidating the channel driving cost efficiency and strengthening the foundation we built through FY26. The result is visible in our performance this quarter and gives us immense optimism for the road ahead.

Speaker #3: I'm glad to report that this quarter reflects exactly that direction. We delivered an overall revenue growth of only 2.3%. However, our EBIT margin improved to 6.6% from 2.5%.

Shekhar Bajaj: We delivered overall revenue only 2.3%. However, our EBIT margin improved to 6.6% from 2.5%, I would say that this is a positive step towards implementing our learning through last year's actions. For a company that has stood for 88 years of the Bajaj Group's values, trust, transparency, and quiet, disciplined execution, I see this quarter as evidence that those values are being reflected in how we run the business today. The board and I remain confident in the direction we have set and excited about the momentum we are building. With that, I would like to hand over to Mr. Sanjay Sachdeva, our MD and CEO, to take you through the operational and financial performance in detail.

Speaker #3: I would say that this is a positive step towards implementing our learning through last year's actions. For a company that has stood for 88 years of the Bajaj Group's values, trust, transparency, and quiet disciplined execution, I see this quarter as evidence that those who those values are being reflected in how we run the business today.

Speaker #3: The board and I remain confident in the direction we have set and excited about the momentum we are building. With that, I would like to hand over to Mr. Sanjay Sajdewa, our MD and CEO, to take you through the operational and financial performance in detail.

Speaker #4: Thank you, Chairman Sir, and good evening, everyone. Thank you for joining the call this late. I'm pleased to walk you through our start to financial year '27, which reflects good progress.

Sanjay Sachdeva: Thank you, Chairman, sir, good evening, everyone. Thank you for joining the call this late. I am pleased to walk you through our start to FY27, which reflects good progress. We have started delivering top-line growth with meaningful margin expansion. As the Chairman mentioned, our overall revenue grew by 2.3% year on year in Q1, with Consumer Products growing at 1.7% after a decline for multiple quarters, and Lighting Solutions grew at 4.4%. Our EBIT margin improved to 6.6%, a meaningful step up that reflects the operating discipline we have been building over the last several quarters. Consumer Products return to growth and positive EBIT is a meaningful and positive step for us, especially after the steps we have taken in FY26. It gives us more confidence to believe that we are on the right path. This gives us more confidence.

Speaker #4: We have started delivering top-line growth with meaningful margin expansion. As the Chairman mentioned, our overall revenue grew by 2.3% year on year, in quarter one, with consumer products growing at 1.7% after a decline in multiple quarters.

Speaker #4: For multiple quarters, and lighting solutions grew at 4.4%. Our EBIT margin improved to 6.6%, a meaningful step up that reflects the operating discipline we have been building over the last several quarters.

Speaker #4: Consumer products returned to growth and positive EBIT is a meaningful and have the steps we have taken in financial year 2026. It gives us more confidence to believe that we are on the right path.

Speaker #4: This gives us more confidence. For this quarter, the consumer products vertical was a story of two halves. While the cooling products contracted, the non-summer products had a meaningful expansion and double-digit growth across categories.

Sanjay Sachdeva: For this quarter, Consumer Products vertical was a story of two halves. While the cooling products contracted, the non-summer products had a meaningful expansion and double-digit growth across categories. Moreover, Morphy Richards also grew double-digit post our acquisition in the last quarter. Our EBIT margin has expanded to 3.9% versus -1.7% on a year-to-year basis. This is primarily driven by expansion in our gross margin and efficiencies generated on account of operating leverage. We are confident about our trajectory for this business, and our focus will be to sustain and improve this momentum. Lighting Solutions continue to be the vertical carrying momentum for us. Following a year in which we delivered one of the strongest growth in the industry, a 4.4% growth in this quarter on top of that stronger base is a credible continuation. The growth was fueled by double-digit growth in consumer lighting.

Speaker #4: Moreover, Morphy Richards also grew double digits post our acquisition in the last quarter. Our EBIT margin has expanded to 3.9%, versus negative 1.7% on a year-to-year basis.

Speaker #4: This is primarily driven by expansion in our gross margin and efficiencies generated on account of operating leverage. We are confident about our trajectory for this business and our focus will be to sustain and improve this momentum.

Speaker #4: Lighting Solutions continue to be the vertical carrying momentum for us. Following a year in which it delivered one of the strongest growths in the industry, a 4.4% growth in this quarter on the top of that stronger base is a credible continuation.

Speaker #4: The growth was fueled with double-digit growth in consumer lighting. We remain confident in this business as a structural margin and growth engine including the newer categories we have entered.

Sanjay Sachdeva: We remain confident in this business as a structural margin and growth engine, including the newer categories we have entered. The 6.6% EBIT margin is very satisfying for us. It reflects that the growth we delivered this quarter was earned through cost discipline, value engineering, and agile pricing. Actions that we have taken to offset commodity inflation, even as top-line growth itself remained measured. Our foundation is strong, momentum is building, and opportunities ahead are significant. We are confident in our ability to keep raising the bar by driving innovations, expanding our market shares, strengthening our brands, and demand generation to deliver consistent and profitable growth. With that, we now open to take questions. Thank you.

Speaker #4: The 6.6% EBIT margin is very satisfying for us. It reflects that the growth we delivered this quarter was earned through cost discipline, value engineering, and agile pricing.

Speaker #4: Actions that we have taken to offset commodity inflation, even as top-line growth itself remained measured. Our foundation is strong, momentum is building, and opportunities ahead are significant.

Speaker #4: We are confident in our ability to keep raising the bar by driving innovations expanding our market shares strengthening our brands and demand generation to deliver consistent and profitable growth.

Speaker #4: With that, we now open to take questions. Thank you.

Speaker #1: Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone.

Operator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the questions are sampled. The first question is from the line of Praveen from PL Capital. Please proceed with your question.

Speaker #1: If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question.

Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue is handled. The first question is from the line of Praveen from PL Capital.

Speaker #1: Please proceed with your question.

Speaker #2: Yeah. Thank you for the opportunity. My first question is related to the consumer product in the best note you have mentioned despite a double digit of a growth in the appliances and the Morphy Richard, still we see a you know 2% of a growth.

[Analyst] (PL Capital): Yeah. Thank you for the opportunity. My first question is related to the consumer product. In the best growth you have mentioned, despite a double-digit of growth in the appliances and the Morphy Richards, still we see a 2% of growth. Is the fan business remain very weak in terms of the volume declining or limited ability to take the price hikes or the both, how has been? Where do you see the demand pricing and the margin for this segment to go ahead in the coming quarters?

Praveen Sahay: Yeah. Thank you for the opportunity. My first question is related to the consumer product. In the best growth you have mentioned, despite a double-digit of growth in the appliances and the Morphy Richards, still we see a 2% of growth. Is the fan business remain very weak in terms of the volume declining or limited ability to take the price hikes or the both, how has been? Where do you see the demand pricing and the margin for this segment to go ahead in the coming quarters?

Speaker #2: Is the fan business remainder very weak in terms of the volume declining or limited ability to take the price hikes? Or the both? How has been?

Speaker #2: And where do you see the demand pricing and the margin for this segment to to go ahead in the coming quarters?

Sanjay Sachdeva: Great. Yes, you're right. Fans, as was mentioned in the opening remarks, saw a decline for us. As far as the price increases are concerned, which you mentioned about, we kept pace as far as the commodity inflation was concerned. Going forward, we see improvements in margin. This essentially because of two reasons. As was mentioned, we are looking at our continued focus on VAD activities, and the second focus will continue in terms of looking at premiumizing our portfolio. Over a period of time, the BLDC contribution has continued to increase, and so has the premium contribution. I'm happy to say that from a premiumization point of view, our journey is going well. Going forward, we are far more optimistic as far as the margins are concerned and this business is concerned.

Speaker #3: Great. So yes, you're right. Fans as was mentioned in the opening remarks, saw a decline for us. As far as the price increases are concerned, which you mentioned about, we kept pace as far as the commodity inflation was concerned.

Speaker #3: Going forward, we see improvements in margins. This essentially because of two reasons. As was mentioned, we are looking at a continued focus on VAV activities.

Speaker #3: And the second focus will continue in terms of looking at premiumizing our portfolio. Over a period of time, the BLDC contribution has continued to increase and so has the premium contribution.

Speaker #3: I'm happy to say that from a premiumization point of view, our journey is going well. So going forward, we are far more optimistic as far as the margins are concerned and this business is concerned.

Speaker #2: Related to that, sir, you are also highlighting the BLDC contribution to increase. How has been in the industry a BLDC as a contribution right now?

[Analyst] (PL Capital): Related to that, sir, you are also highlighting the BLDC contribution to increase. How has been in the industry, BLDC as a contribution right now? Because we are hearing from every player regarding the BLDC contribution to increase. Where do you see this BLDC as industry contribution from right now to the way forward, where we will see this?

Praveen Sahay: Related to that, sir, you are also highlighting the BLDC contribution to increase. How has been in the industry, BLDC as a contribution right now? Because we are hearing from every player regarding the BLDC contribution to increase. Where do you see this BLDC as industry contribution from right now to the way forward, where we will see this?

Speaker #2: And because we are hearing from every players regarding the BLDC contribution to increase. So where do you see this BLDC as a industry contribution from right now to the way forward where we will see this?

Speaker #3: So the estimates which we have on BLDC vary between 30 to 35%. We are slightly under-indexed versus the industry, but it's growing much faster and we will be in our rightful share as we progress.

Sanjay Sachdeva: The estimates which we have on BLDC vary between 30% to 35%. We are slightly under indexed, versus the industry, but it's growing much faster, and we will be in our rightful share as we progress.

Speaker #2: Right. And the last question is related to the lighting. So lighting also if I look at on the you know the especially on the margin front, we are nearly around a single digit around 7% odd.

[Analyst] (PL Capital): Right. The last questions are related to the lighting. Lighting, also, if I look at especially on the margin front, we are nearly around a single digit, around 7% odd. Do you believe this margin trend to improve from here with the mix B2C or the B2B changes and we will expect it to drive these numbers from here?

Praveen Sahay: Right. The last questions are related to the lighting. Lighting, also, if I look at especially on the margin front, we are nearly around a single digit, around 7% odd. Do you believe this margin trend to improve from here with the mix B2C or the B2B changes and we will expect it to drive these numbers from here?

Speaker #2: So do you believe this margin trend to improve from here with the mix B2C or the B2B changes and we will expect it to drive these numbers from here?

Speaker #3: So this is Rajesh Desai and we are as we mentioned in last call also we are continuously chasing the premiumization and the mix change from our low commodity products to the more premiumized products.

Rajesh Naik: This is Rajesh Naik. As we mentioned in last call also, we are continuously changing the premiumization and the mix change from our low commodity products to the more premiumized products. We are driving that to have at least a trend towards going towards double digit. That is what the journey is, including B2B, where we are trying to break the volumes up with contribution of high-margin projects to improve this particular margin.

Speaker #3: And we are driving that to have at least a trend towards going towards double digit. That is what the journey is including B2B where we are trying to break the volumes up with contribution of high margin projects to improve this particular margin.

Speaker #4: So in this particular quarter in lighting, we have legacy project projects in professional lighting where we are not able to take the prices up because the contracts were signed on the on the rates before the war.

Sanjay Sachdeva: In this particular quarter in lighting, we have legacy projects in professional lighting, where we are not able to take the prices up because the contracts were signed on the rates before the war. However, commodity prices have gone up, we had to take a hit on the margin in professional lighting. That's getting reflected in the overall lighting business margin. We believe in a quarter or two, as we exit some of these legacy contracts, we will build back our margins. We see it a temporary blip in our margin journey.

Speaker #4: However, commodity prices have gone up so we had to take a hit on the margin in professional lighting. So that's getting reflected in the overall lighting business margin.

Speaker #4: But we believe in a quarter or two as we exit some of these legacy contracts we will build back our margins. So we see it a temporary blip in our margin journey.

Speaker #2: So in a study states where do you see this margin to be?

[Analyst] (PL Capital): In a steady state, where do you see this margin to be?

Praveen Sahay: In a steady state, where do you see this margin to be?

Speaker #4: Excuse me?

Sanjay Sachdeva: Excuse me.

Speaker #2: So in in you know.

[Analyst] (PL Capital): So in-

Praveen Sahay: So in-

Sanjay Sachdeva: Once we are off this legacy project, we go back to double-digit margins in overall lighting.

Speaker #4: So once we are off this legacy project we'll go back to double digit margins and lighting overall lighting.

Speaker #2: Yeah. Thank you sir and all the best.

[Analyst] (PL Capital): Yeah. Thank you, sir, and all the best.

Praveen Sahay: Yeah. Thank you, sir, and all the best.

Speaker #4: Thanks.

Sanjay Sachdeva: Thanks.

Speaker #1: Thank you. The next question is from the line of Anirudh Joshi from ICIC Securities. Please proceed with your question.

Operator: Thank you. The next question is from the line of Aniruddha Joshi from ICICI Securities. Please proceed with your question.

Speaker #2: Yes, sir. Two questions. One, in terms of the market shares, can you indicate what will be—in a way, whether we would have a gain or anything that you can share?

Aniruddha Joshi: Yes. Sir, two questions. One, in terms of the market shares, can you indicate what will be the, in a way, whether we would have gained or anything that you can share? Secondly, Bajaj as a brand has one of the strongest reach in the entire market and one of the best-known brand in rural markets too. What will be the, in a way, growth in rural markets, and how do you see the market shares in a way panning out in rural markets too? Yeah, thanks.

Speaker #2: Also secondly Bajaj as a brand has one of the strongest reach in the entire market and one of the best known brand in rural markets too.

Speaker #2: So what will be the in a way growth in in rural markets and how do you see the market shares in a way panning out in rural markets too?

Speaker #2: Yeah. Thanks.

Speaker #4: So overall share trend is a mixed bag for us. Now, in a few categories, we have been growing share or are stable. So we are stable in most of the categories and growing in irons and mixer grinders.

Sanjay Sachdeva: Overall share trend is a mixed bag for us. In few categories we have been growing share or stable. We are stable in most of the categories and growing in iron and mixer grinders. The one category which is large, where we have, as we explained earlier, we have not done as well as we want to, is fans. This is where we are losing share. We know why we are losing share, and we have corrective actions in place. We intend to claw back on our share loss in next two or three quarters. We don't have any special share report for rural, so very difficult to answer how we are performing there.

Speaker #4: The one category which is large where we have as we explained earlier we have not done as well as we want to is fans.

Speaker #4: This is where we are losing share. We know why we are losing share. And we have corrective actions in place. So we intend to claw back on our share loss in you know next two or three quarters.

Speaker #4: We don't have any special share report for rural. So very difficult to answer how we are performing there. Needless to mention if overall shares are either stable or growing for most of the categories our rural shares and we are large player in rural so we should assume that our rural shares should be intact.

Sanjay Sachdeva: Needless to mention, if overall shares are either stable or growing for most of the categories, our rural shares, and we are large player in rural, we should assume that our rural share should be intact.

Speaker #2: Shortly sir. Just last question. So in terms of distribution what is the current strategy now to focus on numerical reach expansion or to driving the throughput per store?

Aniruddha Joshi: Surely, sir. Just last question. In terms of distribution, what is the current strategy now, to focus on numerical reach expansion or to driving the throughput per store? Also, what will be share of e-commerce, modern trade, the alternate channels, essentially? What will be the plans to expand share in these alternate channels too? Yeah, that's it from my side. Many thanks.

Speaker #2: Also what will be share of e-commerce modern trade the alternate channels essentially and what will be the plans to expand share in these alternate channels too?

Speaker #2: Yeah. That's it from my side. Many thanks.

Speaker #3: Okay. The the first part was first part of the question. Numeric or numeric. Yeah. So the the focus remains on both. While we have a very large numeric reach but as we know market share is you know measured both in terms of it is impacted by both numeric as well as the counter share.

Vishal Chadha: Okay. What was the first part of the question?

Sanjay Sachdeva: Numeric or-

Vishal Chadha: Numeric. Yeah. The focus remains on both. While we have a very large numeric reach, but as you know, market share is impacted by both numeric as well as the counter share. We cannot let go of one and focus on other, so we are focusing on both in a calibrated manner. While numeric reach continues to grow, we are equally mindful about our counter share and the focus is on there also. The second piece was on e-commerce. E-commerce contributes to approximately 15%, and again, depends on quarter to quarter, depending on the festive or the sale events which the e-commerce players do. On an average, it's around 15%, which is in line with the industry. Alternate business contributes in all put together around 45%.

Speaker #3: So our focus remains I mean we cannot let go of one and focus on another. So we are focusing on both in a calibrated manner.

Speaker #3: While numeric reach continues to grow we are equally mindful about our counter share and the focus is on there also. The second piece was an e-commerce.

Speaker #3: E-commerce contributes to approximately 15% and again depends on quarter to quarter depending on the festive or the you know the sale events which the e-commerce players do.

Speaker #3: But on an average it's around 15% which is in line with the industry. Alternate business contributes in all put together around 45%. It's a 55 45 kind of a ratio which take a few percentage points here and there could be 57 43 but broadly it's 55 45.

Vishal Chadha: It's a 55/45 kind of a ratio, which take a few percentage points here and there, could be 57/43, broadly it's 55/45. Alternate for us this quarter has also grown very well. E-commerce has grown in double digits. We have also almost doubled our exports.

Speaker #3: And alternate for us means quarter has also grown very well. E-commerce has grown in double digits. And we have also almost doubled our exports.

Speaker #2: Okay.

Aniruddha Joshi: Okay.

Speaker #1: Thank you. Before we take the next question we would like to remind participants that you may press star and one to ask a question.

Operator: Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. Participants who wish to ask a question, please press star and one at this time. The next question is from the line of Achal from Nuvama Institutional Equities. Please proceed with your question.

Speaker #1: Participants who wish to ask a question please press star and one at this time. The next question is from the line of Archel from Novama Institutional Equities.

Speaker #1: Please proceed with your question.

Speaker #2: Yeah. Good evening sir. Thank you for the opportunity. This is Achel from Novama. So the first question I have you know with respect to the the distribution change what we were undertaking where are we in terms of that backlog is it done in the state or is it still going on and how long will it take for us to see a normal growth?

[Analyst] (Nuvama Institutional Equities): Good evening, sir. Thank you for the opportunity. This is Achal from Nuvama. The first question I have with respect to the distribution change, what we were undertaking. Where are we in terms of that backlog? Is it done and dusted, or is it still going on, and how long will it take for us to see a normal growth?

Achal Lohade: Good evening, sir. Thank you for the opportunity. This is Achal from Nuvama. The first question I have with respect to the distribution change, what we were undertaking. Where are we in terms of that backlog? Is it done and dusted, or is it still going on, and how long will it take for us to see a normal growth?

Vishal Chadha: We haven't talked about any distribution change per se, Achal. Our go-to-market continues to remain what it is. If you are alluding to when we took stock correction.

Speaker #3: We we haven't talked about any distribution change per se Achel. Our go-to-market continues to remain what it is if you are alluding to when we took stock correction.

Speaker #2: Yeah. Stock correction. Sorry. Yeah.

[Analyst] (Nuvama Institutional Equities): Yeah, stock correction. Sorry. Yeah.

Achal Lohade: Yeah, stock correction. Sorry. Yeah.

Speaker #3: Right. Right. Right. Okay. So so sorry for for misunderstanding. Yes. We have take taken stock correction and we and it's an ongoing journey. We continue to do whenever it's required in a calibrated manner but at an overall level our stocks are at a much healthier position than what they were a few quarter a couple of quarters ago.

Vishal Chadha: Right. Okay. Sorry for misunderstanding. Yes. We have taken stock correction, and it's an ongoing journey. We continue to do whenever it's required in a calibrated manner. At an overall level, our stocks are in much healthier position than what they were a quarter or couple of quarters ago.

Speaker #2: Understood. Understood. And on the GTM since you thankfully raised that point you know earlier we were almost exclusively on the RREP program and sometime back we kind of started working on direct distribution as well direct leaders.

[Analyst] (Nuvama Institutional Equities): Understood. On the GTM, since you thankfully raised that point. Earlier, we were almost exclusively on the RREP program, and sometime back we kind of started working on direct distribution as well, direct dealers. If you could elaborate at this point in time how it is structured, and do you see any changes to that structure in next two, three, four years?

Achal Lohade: Understood. On the GTM, since you thankfully raised that point. Earlier, we were almost exclusively on the RREP program, and sometime back we kind of started working on direct distribution as well, direct dealers. If you could elaborate at this point in time how it is structured, and do you see any changes to that structure in next two, three, four years?

Speaker #2: So if you could elaborate at at this point in time how it is structured and do you see any changes to that structure in next two three four years?

Speaker #3: So RREP, I mean the full form of that essentially is Retail Range Expansion, so those are the common things which we continue to drive. It's only the manner in which it could differ. So the bulk of our business still happens through the distributor channel. In certain markets, we have already started kicking off our direct models where it is required. So we have direct dealers which we are now reaching out to in parts of South, in parts of West, and going forward we will probably accelerate, depending on the geography, our direct distribution model.

Vishal Chadha: RREP, I mean, the full form of that essentially is retail range expansion. Those are the common things which we continue to drive. It's only the manner in which could differ. The bulk of our business still happens through the distributor channel. In certain markets, we have already started kicking off our direct models where it is required. We have direct dealers, which we are now reaching out to in parts of south, in parts of west, and going forward, we will probably accelerate, depending on the geography, our direct distribution model.

Speaker #2: Understood. So my next question I have you know with respect to with respect to the margins you know with respect to particularly the ECD margins if you could give us some sense you know while I understand you know obviously the margins have improved they will continue to improve but how long do you think it will take for us to go back to you know closer to 9 10% margin what we could have had you know say about 7 8 years ago?

[Analyst] (Nuvama Institutional Equities): Understood. My next question I have, with respect to the margins, with respect to particularly the ECD margins. If you could give us some sense, while I understand, obviously the margins have improved, they will continue to improve. How long do you think it will take for us to go back to closer to 9% to 10% margin, what we could have had, say about seven, eight years ago?

Achal Lohade: Understood. My next question I have, with respect to the margins, with respect to particularly the ECD margins. If you could give us some sense, while I understand, obviously the margins have improved, they will continue to improve. How long do you think it will take for us to go back to closer to 9% to 10% margin, what we could have had, say about seven, eight years ago?

Speaker #3: Yes.

Speaker #4: Okay. Let me take this Rashmi. See our gross margins have improved by 150 bits as a company and especially in the consumer product segment it's grown by 2.0 bits.

[Company Representative] (Bajaj Electricals): Okay, let me take this. Rashmi here. See our gross margins have improved by 150 bps as a company, and especially in the consumer products segment, it's grown actually more than this. This growth is coming from various factors. It's coming from premiumization, it's coming from productivity-led initiatives across better mix management, ROI-led investments, and better commercial discipline. We believe these current gross margins are sustainable directionally. Quarterly movements will depend on commodity prices, category mix, and competitive intensity. Our focus is to keep improving the quality of the margins. We do believe with the structural improvements that we've done, we should directionally move in the positive direction.

Speaker #4: And this growth has coming from various factors. It's coming from premiumization. It's coming from productivity led initiatives across better mix management. ROI led investments.

Speaker #4: Better commercial discipline. So we believe these current gross margins are sustainable directionally but quarterly movements will depend on commodity prices, category mix, and competitive intensity.

Speaker #4: Our focus is to keep improving the quality of the margins and we do believe with the structural improvements that we've done we should directionally move in the positive direction.

Speaker #2: Got it. Any any guidance or any thoughts on the normalization of the margins will it take couple of years or you think it it will it could be a bit more longer journey?

[Analyst] (Nuvama Institutional Equities): Got it. Any guidance or any thoughts on the normalization of the margins? Will it take couple of years or you think it could be a bit more longer journey?

Achal Lohade: Got it. Any guidance or any thoughts on the normalization of the margins? Will it take couple of years or you think it could be a bit more longer journey?

Speaker #3: So normally you're talking about here the EBIT bottom line margin or gross margin?

Sanjay Sachdeva: Normally you're talking about here the EBIT bottom line margins or gross margin?

Speaker #2: ECD ECD EBIT margin sir. Because lighting I think we are good now. Like you've already talked about you know going to double digits. So I I I understand that completely.

[Analyst] (Nuvama Institutional Equities): ECD EBIT margin, sir. Lighting, I think we are good now, like you've already talked about going to double digits. I understand that completely, but I'm just curious for the consumer products margins basically.

Achal Lohade: ECD EBIT margin, sir. Lighting, I think we are good now, like you've already talked about going to double digits. I understand that completely, but I'm just curious for the consumer products margins basically.

Speaker #2: But I'm just curious for the consumer products margins basically.

Speaker #3: So, as we always said, we intend to go to a 10% margin, which I did not know we had six years back. I don't think we ever had it.

Sanjay Sachdeva: As we always said, we intend to go to a 10% margin, which I did not know we have six years back. I don't think we ever had it. We are going to bring to that. I don't know maybe if it was there in the history. We intend to go to 10% margin, which will be very close to industry leading or close to industry top end of the margin. We believe, as you can see the journey, we have very quickly ramped up our margins. We believe the first set of turnaround in margins will be quick and large, and the second set will be slow and longer because first set of improvement is like low-hanging fruits, and you should be able to sort of deliver that quickly.

Speaker #3: But we are going to bring to that. I don't know. Maybe if it was there in the history. But we intend to go to 10% margin which will be very close to industry leading or industry you know close to industry top end of the margin.

Speaker #3: So we believe as you can see the journey you know we we are very quickly ramped up our margins. We believe the first set of turnaround in margins will be quick and large and the second set will be slow and longer because you know first set of improvement is like low hanging fruits and you should be able to sort of deliver that quickly.

Speaker #3: So, answering your question, we do see our margins for the next two years stabilizing between 6% to 7%, because we would like to, at the same time, invest a bit more behind our brands.

Sanjay Sachdeva: Answering your question, we do see our margins for next two years to stabilize between 6% to 7% because we would like to, at the same time, invest a bit more behind our brands. Once we have strengthening our brands and the scale coming, we will then build our margins further. If there is a timeline, I will say, certainly not next two years, but after that you will see steady improvement towards 10%. That's all I can say. Whether it will take four years, five years, three years, that depends upon many other factors.

Speaker #3: But once we have strengthened our brands and, you know, with the scale coming in, we will then build our margins further. So, if there is a timeline, I would say certainly not in the next two years, but after that you will see steady improvement towards 10%.

Speaker #3: That's all I can say. Whether it'll take four years five years three years that depends upon many other factors.

Speaker #2: Got it. In terms of the competition specifically you know are you seeing like competition actually getting more intensified? Everybody wants to do everything. So and given our positioning at this stage in terms of the value for money do you see that you know the the market share improvement is more harder now to gain back compared to what it would have been say two years ago?

[Analyst] (Nuvama Institutional Equities): Got it. In terms of the competition specifically, are you seeing competition actually getting more intensified? Everybody wants to do everything. Given our positioning at this stage in terms of the value for money, do you see that the market share improvement is more harder now to gain back compared to what it would have been, say, two years ago?

Achal Lohade: Got it. In terms of the competition specifically, are you seeing competition actually getting more intensified? Everybody wants to do everything. Given our positioning at this stage in terms of the value for money, do you see that the market share improvement is more harder now to gain back compared to what it would have been, say, two years ago?

Speaker #3: So it's a it's a it's a two ways to look at it. When everybody's entering you can see the kind of growth the market is giving to everybody.

Sanjay Sachdeva: It is two ways to look at it. When everybody is entering, you can see the kind of growth the market is giving to everybody. Market will expand when a lot of players come because of the investment, because of the innovations, because of other initiatives everybody takes, education, because it is still a very under-penetrated categories, most of them. Coming more players not necessarily means it is not good for the current players. Will the market share improve or decline or not is a question of how well you play with your brands, your innovations, technology, go-to-market initiatives. We believe in that knowledge becomes important. While we have one brand, Bajaj, but we have another brand, Morphy Richards, which is at the right space in terms of when people premiumize, this is one of the brands which we gain.

Speaker #3: So market will expand when everybody comes. A lot of player comes because of the investment because of the innovations because of other initiatives everybody takes.

Speaker #3: Education because it's still a very underpenetrated categories most of them. So coming more players not necessarily mean it's not good for the current players.

Speaker #3: Now will the market share improve or decline or not is a question of how well you play with your brands your innovations technology go-to-market initiatives and we believe in that knowledge becomes important while we have one brand Bajaj but we have another brand Morphy Richard which is at the right space in terms of when the people premiumize this is one of the brands which will gain so therefore we do see many levers coming in as we get our act together and we don't think and that's not our play that our share will be you know questioned.

Sanjay Sachdeva: We do see many levers coming in as we get our act together. We do not think, and that is not our play, that our share will be questioned. As I told you, except for fans, most of the categories our shares are either stable or growing. While as I said, competition is heating up, but it is not something which is going to impact us too much in medium to long term.

Speaker #3: So as I told you in you know except for fan most of the categories our shares are rather stable or growing you know. And therefore while as I said competition is hotting heating up but it's not it's not something which you know is going to impact us too much in medium to long term.

Speaker #2: Understood. Sir, I have a couple more questions, if I may, with respect to Wires. The contribution is very significant in the current year.

[Analyst] (Nuvama Institutional Equities): Understood. Sir, I have a couple more, if I may ask. With respect to wires, contribution is very little contribution in the current year, in the current quarter, I mean.

Achal Lohade: Understood. Sir, I have a couple more, if I may ask. With respect to wires, contribution is very little contribution in the current year, in the current quarter, I mean.

Speaker #2: In the current quarter ma'am. Any?

Speaker #3: So that will be sometimes we don't tell all that I can say that in wires our progress is better than what we were expecting.

Sanjay Sachdeva: That is sometimes we do not tell. All that I can say is that in wires, our progress is better than what we were expecting, and that gives us confidence that it can play a significant role moving forward to our business.

Speaker #3: And that gives us confidence that it can play a significant role moving forward to our business.

Speaker #2: And this will be part of the consumer products or the lighting segments ma'am?

[Analyst] (Nuvama Institutional Equities): This will be part of the consumer product or the lighting segment?

Achal Lohade: This will be part of the consumer product or the lighting segment?

Speaker #3: So it's part of the lighting segment. And including including switchgears.

Sanjay Sachdeva: It's part of the lighting segment, including switchgears.

Speaker #2: Got it. In terms of the networking capital if you could call out networking capital days how has they moved from March to June quarter?

[Analyst] (Nuvama Institutional Equities): Got it. In terms of the networking capital, if you could call out networking capital days, how have they moved from March to June quarter?

Achal Lohade: Got it. In terms of the networking capital, if you could call out networking capital days, how have they moved from March to June quarter?

Speaker #4: Yes. So our working capital position see has improved. On the debtor side we've improved. On the overall inventories however slightly up. And the reason for that is because we've locked ourselves in some good inventories.

Ashween Anand: Yeah. Our working capital position, we see has improved. On the debtor side, we've improved. On the overall inventories, however, slightly up. The reason for that is because we've locked ourselves in some good inventories. This is a seasonal period, we've increased slightly over there. Normally, broadly it's in the range. It's largely hovering around between 50, 60. That's the larger trend. We see some buildup to happen because of the seasonal business. Overall, they're tracking healthy. We are in a space where we're looking at that and monitoring it very closely, but we think that we're building up good inventory.

Speaker #4: This is a seasonal period so we've increased slightly over there. But normally broadly it's in the range and you know it's largely hovering around between fifty sixty so that's the larger trend.

Speaker #4: And and and we see some build up to happen because of the seasonal seasonal business. But overall we're tracking healthy. We had we had you know in a space where we're looking at that and monitoring it very closely but we think that we're building up good inventory.

Speaker #2: Got it. Any quantification you could give for the OCF during first quarter? Cash flow from operation?

[Analyst] (Nuvama Institutional Equities): Got it. Any quantification you could give for the OCF during Q1, cash flow from operation?

Achal Lohade: Got it. Any quantification you could give for the OCF during Q1, cash flow from operation?

Speaker #4: Yeah. So see overall cash flow has been negative. That's the larger reason for that is because of some of the tax compliances we had to make on the Morphy acquisition for the TDS as well as on the GST.

Ashween Anand: Yeah. See, overall cash flow has been -negative, but the larger reason for that is because of some of the tax compliances we have to make on the Morphy acquisition. The TDS, as well as on the GST. Hence it's been -negative. Other than that, it's largely been healthy. If you remove that element out, it's been healthy.

Speaker #4: So hence it's it's been negative. But other than that it's largely been healthy. So if you remove that element out it's been healthy.

Speaker #2: Understood. Thank you and call back in the Q4 quarter. Thank you so much.

[Analyst] (Nuvama Institutional Equities): Understood. Thank you. I will call back in the queue for follow-up. Thank you so much.

Achal Lohade: Understood. Thank you. I will call back in the queue for follow-up. Thank you so much.

Speaker #1: Thank you. Ladies and gentlemen if you wish to ask a question please press star and one at this time. I repeat to ask a question please press star and one now.

Operator: Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and one at this time. I repeat. To ask a question, please press star and one now. The next question is from the line of Aditya from AK Investments. Please proceed with your question.

Speaker #1: The next question is from the line of Aditya from AK Investments. Please proceed with your question.

Speaker #2: Yes. Thanks for the opportunity. Firstly great set of numbers. I see management is doing taking the right steps. So my first question is related to growth.

[Analyst] (AK Investments): Yes. Thanks for the opportunity. Firstly, great set of numbers. I see management is taking the right steps. My first question is related to growth. Where do you see for this couple of years, this year and next year, what kind of growth can we expect in the top line?

Speaker #2: Where do you see for this couple of years this year and next year what kind of growth can we expect in the top line?

Speaker #3: So there is a inflation part of it. So you know that is the one which is difficult to guess but otherwise we can you can assume from all the businesses put together we are looking at between eight to ten percent growth quarter on quarter.

Sanjay Sachdeva: There is an inflation part of it. That is one which is difficult to guess. Otherwise, you can assume from all the businesses put together, we are looking at between 8% to 10% growth quarter on quarter. That's the number we are looking. This can vary a quarter here and there, but that's a kind of a ballpark number we are targeting. This is not a forward-looking commitment, but this is the kind of targets which we are looking at, and we are therefore working towards opportunities to deliver these kind of numbers.

Speaker #3: That's the number we are looking at.

Speaker #2: So this can vary a quarter here and there but that's a kind of a ballpark number we are targeting. But this is not a forward looking commitment but this is the kind of targets which we are looking at and we are therefore working towards opportunities to you know deliver these kind of numbers.

Speaker #2: Eight to ten percent growth for two years. That's what we can think.

[Analyst] (AK Investments): 8% to 10% growth for two years. That's what we can think.

Speaker #3: This is what we think. Which industry look look this is assumption is in the industry will grow six seven percent minimum. So it's you know saying ahead of the industry.

Sanjay Sachdeva: This is what we think. Look, this assumption is industry will grow 6% to 7% minimum. It's staying ahead of the industry. If industry grows at 3%, it comes down to 5%, but we believe industry is attractive and can give you a growth of 6% to 7%.

Speaker #3: Now, if industry grows at 3, it comes down to then 5. But we believe the industry is attractive and can give you a growth of 6 to 7 percent.

Speaker #2: Okay. Understood. And also one question I have recently we are hiring a new CBO officer. So what are the areas are we looking at?

[Analyst] (AK Investments): Okay. Understood. One question I have recently, we are hiring a new CBO officer. What are the areas are we looking at? I mean, I am asking a little longer-term question for Bajaj Electricals. As a long-term, what are the categories are we looking at? I mean, if you think of under your regime, right? I mean longer term, four to five years. You are coming from a larger-sized company, and you have joined here in one year. We are trying to fix things. What is exciting you here for next three to four years?

Speaker #2: I mean I'm asking a little longer term question for Bajaj Electricals. As a long term what are the categories are we looking at? I mean if you think of under your regime right?

Speaker #2: I mean longer term four to five years. We have you are coming from a larger size company and you have joined here in one year we are trying to fix things.

Speaker #2: But what what is exciting you here for next three to five years?

Speaker #3: So you're talking about the new person who has joined.

Sanjay Sachdeva: You're talking about the new person who has joined?

Speaker #2: New person and along with your journey also for three to five years. Why you have taken up this role? I mean yeah. Yeah.

[Analyst] (AK Investments): New person and along with your journey also for three to five years, why you have taken up this role, I mean, yeah.

Speaker #3: So the categories we operate itself is pretty attractive. You know that gives you enough opportunities as I told you penetration are low. Market shares are you know you are in a good position in market share in most of the categories except for fan.

Sanjay Sachdeva: The categories we operate itself is pretty attractive. That gives you enough opportunities. As I told you, penetrations are low. You are in a good position in market share in most of the categories except for fan. You see a long runway even on those, in these categories to grow. Apart from that, there are quite a few things which are happening when you look outside, whether it's infrastructure which is getting created, which gives you a large amount of opportunities. It's a question of how much you want to grab, including what we are doing in professional lighting, which you have seen, or some of the transformation which is happening outside and few areas which we already talked about, and it is in the public domain, like solar or wires we got into and then cables, which we are seriously looking at.

Speaker #3: So you see a long runway even on those in these categories to grow. things which are happening you know when you look outside whether it's a infrastructure which is getting created which gives you a large amount of opportunities.

Speaker #3: It's a question of how how much you want to grab including you know what we are doing in professional lighting which you have seen.

Speaker #3: Or some of the transformation which is happening outside and few areas which we already talked about and it is in the public domain like solar or wires we've got into and then cables which we are seriously looking at.

Speaker #3: And there are more areas when we see around and we see that there are possibilities we as a company to expand. For obvious reason it is still at a very early stage to share.

Sanjay Sachdeva: There are more areas when we see around, and we see that there are possibilities, we as a company, to expand. For obvious reason, it is still at a very early stage to share, this exactly is the job the person who will come will do. The whole idea is how do we sort of create a company which is of a different kind and a different size as we see ourselves five years from now. Consumer products will stay and lighting will stay one of the businesses, our assumption is it will be beyond that.

Speaker #3: But this is exactly is the job the person who will come will do. And the whole idea is how do we sort of create a company which is which is of a different kind and a different size as we see ourselves five years from now.

Speaker #3: Consumer products will stay and lighting will stay one of the businesses but our assumption is it will be beyond that.

Speaker #2: Okay. Okay. So this will occur two years we stabilize then we'll start venturing or the simultaneous projects will keep starting? The pilot thing.

[Analyst] (AK Investments): Okay. This will, after two years, we stabilize, then we'll start venturing or the simultaneous projects will keep starting? The pilot stage.

Sanjay Sachdeva: Difficult to say, our current assumption is those will start.

Speaker #3: So difficult to say but but our current assumption is those will start.

Sanjay Sachdeva: Difficult to say, our current assumption is those will start.

Speaker #2: Okay. Okay. But still on the meaningful way maybe two years out we can see in the numbers but two years we can see that eight to ten percent growth we are looking for right?

[Analyst] (AK Investments): Okay. Still on the meaningful way, maybe two years out, we can see in the numbers, two years we can see that 8% to 10% growth we are looking for, right?

Speaker #3: Yeah.

Sanjay Sachdeva: Yeah.

Speaker #2: Okay. Okay. Thanks. Thanks for that.

[Analyst] (AK Investments): Okay, cool. Thanks. Thanks a lot.

Speaker #1: Thank you. A gentle reminder to all participants if you wish to ask a question please press star and one now. I repeat to ask a question please press star and one now.

Operator: Thank you. A gentle reminder to all participants. If you wish to ask a question, please press star and one now. I repeat. To ask a question, please press star and one now. The next question is from the line of Achal from Nuvama Institutional Equities. Please proceed.

Speaker #1: The next question is from the line of Achal. From Novama Institutional Equities please proceed.

Speaker #2: Yeah. Thank you for the follow up opportunity sir. Just sorry if I've missed out in the beginning if you have answered this. In terms of the cost inflation if you could give us some sense what is the extent of cost inflation across our key categories like fans, mixies water heater and couple of more.

[Analyst] (Nuvama Institutional Equities): Thank you for the follow-up opportunity, sir. Sorry if I missed out in the beginning, if you have answered this. In terms of the cost inflation, if you could give us some sense, what is the extent of cost inflation across our key categories like fans, mixies, water heater, and couple of more? To what extent have we been able to take price increase and how much more is expected?

Achal Lohade: Thank you for the follow-up opportunity, sir. Sorry if I missed out in the beginning, if you have answered this. In terms of the cost inflation, if you could give us some sense, what is the extent of cost inflation across our key categories like fans, mixies, water heater, and couple of more? To what extent have we been able to take price increase and how much more is expected?

Speaker #2: And you know to what extent have we been able to take price increase and how much more is expected?

Speaker #3: So, yeah. See, across the categories we've seen around—you know, it depends on which category—but let's say, ranging from 6% to 10%. That's the kind of number we've seen.

Ashween Anand: Across the categories we've seen around, depends on which category, but let's say ranging from 6% to 10%. That's the kind of number we've seen. Where raw material inflation has been significant, we've taken selective price corrections depending on category elasticity and competitive intensity. As regards to the future, the external environment continues to remain volatile, and we will assess the impacts before taking any pricing decisions. At this point in time, we are assessing. We'll have to see how the commodity prices move.

Speaker #3: And where raw material inflation has been significant, we've taken selective price correction depending on category elasticity and competitive intensity. As regards the future, the external environment continues to remain volatile, and we will assess the impacts before taking any pricing decisions.

Speaker #3: But at this point in time you know we are assessing we like to see how the you know commodity prices move. So between price increase and the savings opportunities we see we we at this stage at this stage and things can change at this stage we are not seeing major price increase need.

Sanjay Sachdeva: Between price increase and the savings opportunities we see, at this stage, and things can change, at this stage, we are not seeing major price increase need to meet our margin requirements for the rest of the year, at this stage. Things are too volatile, and things may change in two months' time. This is the best we can say right now, that our now focus is to drive growth because rest of the levers are in place.

Speaker #3: To to meet our margin requirements for the rest of the year. At this stage but you know things are too volatile. And things may change in two months time.

Speaker #3: So this is the best we can say right now that are now focuses to drive growth. Because rest of the levers are in place.

Speaker #2: Just a clarification sir. Six to ten percent is the cost inflation across our key categories. Have I understood right? Or that was the price increase you have taken.

[Analyst] (Nuvama Institutional Equities): Just a clarification, sir. 6% to 10% is the cost inflation across our key categories. Have I understood right? That was the price increase you have taken. What was that?

Achal Lohade: Just a clarification, sir. 6% to 10% is the cost inflation across our key categories. Have I understood right? That was the price increase you have taken. What was that?

Speaker #2: What was that?

Speaker #3: Yeah. So you're right. So the it's it's as high as thirteen percent in some categories it's between six to coolers was the highest. In terms of cost like yeah.

Sanjay Sachdeva: Yeah. You're right. As I said, 13% in some categories. Coolers were the highest in terms of cost. It is anywhere between 6% to about 11%, 12%. Most of that, between pricing and savings, we have managed to sail through. Not everything we have put in price, of course, part has come through savings.

Speaker #3: So so it is anyway between six to about eleven twelve percent. And most of that between pricing and savings we have managed to sale through.

Speaker #3: Not everything we have put in price of course. Part has come through savings.

Speaker #2: Understood. Understood. Sir I don't know if you could comment you know for each of our key categories you know how the growth has been for the for the category and what is the sense you know in terms of the volume growth.

[Analyst] (Nuvama Institutional Equities): Understood. Sir, I don't know if you could comment, for each of our key categories. How the growth has been for the category and what is the sense in terms of the volume growth? Because we think that the current growth was actually also on a low base. If you could give us some sense in terms of how the demand scenario has been, and if you could, within that, call out on a key category, particularly fans, mixies, water heater, et cetera.

Achal Lohade: Understood. Sir, I don't know if you could comment, for each of our key categories. How the growth has been for the category and what is the sense in terms of the volume growth? Because we think that the current growth was actually also on a low base. If you could give us some sense in terms of how the demand scenario has been, and if you could, within that, call out on a key category, particularly fans, mixies, water heater, et cetera.

Speaker #2: Because we we think that you know the current growth was actually also on a low base. So if you put you know give us some sense in in terms of how the demand scenario has been and if you could within that call out on a key categories like particularly fans mixies cetera.

Speaker #3: Sure. First one correction. For us the as you remember we had done stock corrections in quarter three and quarter four and partly in this quarter.

Sanjay Sachdeva: Sure. First, one correction. For us, as you remember, we had done stock corrections in Q3 and Q4, and partly in this quarter. We had a higher base in Q1 and Q2 because at that time we were adding stocks. Just for your distinction, that it was not a low base for us. Number one. Number two is, as we told right in the beginning, that fans is one category for some external reason, internal reasons, we could not deliver growth, which is more operational issues than anything else. Therefore, it was not a growth which we believe is one time. Because if you see net off fans, last year the season was not good. Net off fans we had done well last year, and again, net off fans we have done well. It's a trend for us.

Speaker #3: We had a higher base on quarter one and two because at that time we were not we were adding stocks. So just for your this thing that it was not a low base for us.

Speaker #3: Number one. Number two is as we told right in the beginning that fans is one category for some external reason internal reasons we could not deliver growth.

Speaker #3: Which is more operational issues than anything else. And therefore it was not a growth which was we believe is one time because if you see net of fans last year the the season was not good.

Speaker #3: So net of fans we had done well last year and again net of fans we have done well. So so it's it's a trend for us.

Speaker #2: Right. Yes.

[Analyst] (Nuvama Institutional Equities): Right. Yes.

Achal Lohade: Right. Yes.

Speaker #3: So net of net of fans it's a trend for us. Yeah. And we are clear it's a fans we have to you know sort out.

Sanjay Sachdeva: Net off fans is a trend for us, yeah. We are clear it's the fans we have to sort out.

Speaker #2: Got it. And the demand scenario in general, in terms of we are going to...

[Analyst] (Nuvama Institutional Equities): Got it. The demand scenario in general, in terms of the-

Achal Lohade: Got it. The demand scenario in general, in terms of the-

Operator: Sir? Mr. Achal?

Speaker #1: Sir Mr. Achal? Maybe request you to return to the question queue for a follow up as there are several participants waiting. Thank you. The next question is from the line of Bharat from Quest Investment Managers please proceed with your question.

Sanjay Sachdeva: Yes.

Operator: May we request you to return to the question queue for a follow-up, as there are.

Sanjay Sachdeva: Yes

Operator: several participants waiting. Thank you. The next question is from the line of Bharat from Quest Investment Managers. Please proceed with your question.

Speaker #2: Hi sir. Thanks for the opportunity. Sir I joined a little late. So if you can give some more color on GTM so it's you at that point I started.

Bharat Sheth: Hi, sir. Thanks for the opportunity. Sir, I joined a little late. If you can give some more color on GTM, at that point I started. What exactly are we doing in GTM and how we are expanding the distribution, dealer network, and touch point? Simultaneously, for logistics, what we are doing so that we can grow faster than the industry level?

Speaker #2: So what exactly are we doing in GTM and how we are expanding the distribution dealer network and touch point. And simultaneously for logistics what we are doing.

Speaker #2: So that we can make I mean grow faster than the industry level.

Speaker #3: So I think comment on the the GTM part of it. While we continue to expand distribution and I had answered that question earlier. In a physical retail environment we are expanding both our reach through the distributor network and also through direct dealers in a calibrated manner.

Vishal Chadha: I can comment on the GTM part of it. While we continue to expand distribution, and I had answered that question earlier. In a physical retail environment, we're expanding both our reach through the distributor network and also through direct dealers in a calibrated manner. However, we are also seeing growth, we're talking about consumer reach over here, with other channels which are gaining prominence. For example, e-commerce and within that, the quick commerce domain also.

Speaker #3: However we are also seeing growth. We're talking about consumer reach over here. With other channels which are gaining prominence. For example e-commerce and within that the quick commerce domain.

Speaker #3: Also.

Speaker #2: Correct.

Bharat Sheth: Correct.

Speaker #3: So any channel where the consumer is there we are expanding and reaching out to the consumers.

Vishal Chadha: Any channel where the consumer is there, we are expanding and reaching out to the consumers.

Speaker #2: So sir I mean if you can say some color how much of these coming to whether e-commerce and second is the through e-commerce we are seeing the growth.

Bharat Sheth: Sir, if you can share some color, how much of these are coming to, whether e-commerce, and second is that through quick commerce we are seeing the growth?

Vishal Chadha: Yeah. E-commerce has shown a double-digit growth in this quarter. Its contribution, as I mentioned earlier, varies between 15% to 20%, 15% to 18% broadly, depending on the quarter. Within that, the quick commerce space within e-commerce is growing rapidly, and it is approximately 8% to 10% of the total e-commerce business. It is growing rapidly, but it's early days. It's still a relatively smaller business, but we are seeing rapid growth over there.

Speaker #3: Yeah. Yeah. So e-commerce has shown a double digit growth in this quarter. And it's contribution as I mentioned earlier varies between fifteen to twenty percent fifteen to eighteen percent broadly depending on the quarter.

Speaker #3: Within that the quick commerce space within e-commerce is growing rapidly and it is approximately eight to ten percent of the total e-commerce business. But it is growing rapidly but it's early days.

Speaker #3: It's still a relatively smaller business but we are seeing rapid growth over there.

Speaker #2: And sir if you have to understand these off market and through direct e-commerce or quick commerce so is there any pricing difference is there or how do we make better margin or if you can give some color directionally.

Bharat Sheth: Sir, if you have to understand this off market and through direct e-commerce or quick commerce. Is there any pricing differences there or how do we make better margin? If you can give some color directionally. How do we see to integrate those market, either e-commerce or quick commerce, a better way?

Speaker #2: And how do we see to I mean grab those market I mean either e-commerce or quick commerce. A better way.

Vishal Chadha: Each of the channels, whether it is traditional modern format, e-commerce, quick commerce, et cetera, they have their own structures, whether it should be with cost or margin structures. We are in line with how the industry plays it out. Our objective, as I stated earlier, is to reach the consumer in the most efficient manner. Wherever the consumer is shopping, that's where we are.

Speaker #3: I mean the each of the channels whether it is traditional modern format e-commerce quick commerce et cetera. They have their own structures whether it's to do with cost of margin structures.

Speaker #3: And we are in line with how the industry plays it out. Our objective as I stated earlier is to reach the consumer in the most efficient manner and and that and that's where the wherever the consumer is shopping that's where we are.

Speaker #3: Our focus here is to get a transaction contribution more than what you get in general trade. And therefore obviously we look at each transaction value and and net contribution from that value.

Sanjay Sachdeva: Our focus here is to get a transaction contribution more than what you get in general trade. Therefore, obviously, we look at each transaction value and net contribution from that value. If you're gaining on that, then it's a good business for us.

Speaker #3: If you're gaining on that then it's a good business for us.

Bharat Sheth: Sir, within this GTM, if you can give some color, which are the geographic parts where you see that there is a huge room for us, I mean, to expand and which we are, I mean, compared to market, we are little lower level?

Speaker #2: Sir within this GTM if you can give some color which are the geographic part that will where you see that there is a huge room for us I mean to expand and which we are I mean compared to market we are little lower levels.

Speaker #3: So from a geographical point of view we have a little weak in the south markets. And in we are the strongest in east.

Vishal Chadha: From a geographical point of view, we are a little weak in the South markets, and we are the strongest in East.

Speaker #2: Okay. Okay. Sir last question from my side on this trend category you say that because of I mean unavailability of inventory growth was little lower.

Bharat Sheth: Okay. Sir, last question from my side. On this fan category you say that because of, I mean, unavailability of inventory, growth was little lower. That one of the largest player in fans also has faced same problem. If you can elaborate, what are the key challenge that because of which this whole supply chain issue and where are we at this stage? Is it correcting or what specifically we are doing to improve upon?

Speaker #2: That you are one of the largest player in trend also has face same problems. So if you can elaborate I mean what are the key challenge that because of which I mean this whole supply chain issue and where are we at this stage.

Speaker #2: Is it correcting or what specifically we are doing to improve upon.

Speaker #3: So that was more induced due to external factors like war and we had challenges both in terms of the gas shortages and to some extent PCBs.

Sanjay Sachdeva: That was more reduced due to external factors like war, and we had challenges both in terms of gas shortages and to some extent, PCBs.

Speaker #2: Okay. And how do we what are we doing to improve upon which are we industry level.

Bharat Sheth: Okay. What are we doing to improve upon vis-a-vis industry level?

Speaker #3: So gas is restored. The those issues are behind. And PCBs is now we are working on a little longer time cycles to see that we have enough for our and then we to be to be frank we had not anticipated this kind of demand for DLDC fans.

Sanjay Sachdeva: Gas is restored. Those issues are behind. PCBs, now we are working on little longer time cycles to see that we have enough. To be frank, we had not anticipated this kind of demand for BLDC fans. This is where we use PCBs. Therefore, now we are working on different numbers and covering stocks for a longer period of production.

Speaker #3: And that is where most of the you know this is where we use PCBs. And therefore now we are working on different numbers and covering stocks for a longer period of production.

Speaker #2: Okay sir. Thank you and all the best sir.

Bharat Sheth: Okay, sir. Thank you and all the best, sir.

Speaker #3: Thank you.

Sanjay Sachdeva: Thank you.

Speaker #1: Thank you. Ladies and gentlemen, that was the last question from the participant. I now hand over the conference to management for their closing comments.

Operator: Thank you. Ladies and gentlemen, that was the last question from the participant. I now hand over the conference to management for their closing comments. Over to you, sir.

Speaker #1: Over to you sir.

Speaker #3: Thank you very much for all the participants and I'm glad that we've been able to turn around and as we mentioned by the by Sanjay and others that we are looking at the similar performance to be continued in future also.

Shekhar Bajaj: Thank you very much for all the participants. I'm glad that we've been able to turn around and as being mentioned by Sanjay and others that we are looking at the similar performance to be continued in future also. Keeping that in mind, we are looking forward to a very good future for the next few years. The market is good. It is going to be competitive, but that makes the market expand actually when there are more competition, more people playing. I think we should be happy about that. We've got a very strong team now. Therefore, I think I'm very positive and very optimistic. Thank you.

Speaker #3: So keeping that in mind we are looking forward to a very good future for the next few years the market is good. It is going to be competitive but that's makes it the market expands actually when the there are more competition more people playing.

Speaker #3: So I think we should be happy about that. And we were a very strong team now. And therefore I think I'm very positive and very optimist.

Speaker #3: Mystic. Thank you.

Speaker #4: Thank you.

Sanjay Sachdeva: Thank you.

Speaker #5: Thanks.

Sanjay Sachdeva: Thanks.

Speaker #1: Thank you. On behalf of ICSA Securities Limited that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.

Operator: Thank you. On behalf of ICICI Securities Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines. Thank you.

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