Q1 2027 Jyoti Resins and Adhesives Ltd Post Earnings Call

August 11, 2026

Speaker #2: You are muted. You can mute or unmute yourself by pressing star six.

[Company Representative] (Captify Consulting): Shall we begin?

Speaker #3: Should we begin?

Utkarsh Patel: Yes, please.

Speaker #4: Yes, please.

Operator: This meeting is being recorded.

Speaker #2: This meeting is being recorded.

[Company Representative] (Captify Consulting): Ladies and gentlemen, on behalf of Captify Consulting Investor Relations team, I welcome you all to the Q1 FY27 post-earnings conference call of Jyoti Resins and Adhesives Limited. Today, on the phone from the management we have with us Mr. Utkarsh Patel, Managing Director, and Mr. Samit Shah, Chief Operating Officer. As a disclaimer, I would like to inform all of you that this call may contain forward-looking statements, which may involve risks and uncertainties. Also, a reminder that this call is being recorded. I would now request the management to give us their opening remarks, briefing us about the business and performance highlights for the period ended 30 June 2026, the growth plan and vision for the coming year. Post which, we will open the floor for Q&A. Over to the management team.

Vinay Pandit: Ladies and gentlemen, on behalf of Captify Consulting Investor Relations team, I welcome you all to the Q1 FY27 post-earnings conference call of Jyoti Resins and Adhesives Limited. Today, on the phone from the management we have with us Mr. Utkarsh Patel, Managing Director, and Mr. Samit Shah, Chief Operating Officer. As a disclaimer, I would like to inform all of you that this call may contain forward-looking statements, which may involve risks and uncertainties. Also, a reminder that this call is being recorded. I would now request the management to give us their opening remarks, briefing us about the business and performance highlights for the period ended 30 June 2026, the growth plan and vision for the coming year. Post which, we will open the floor for Q&A. Over to the management team.

Speaker #3: Ladies and gentlemen, on behalf of the Captiva Consulting Investor Relations team, I welcome you all to the Q1 FY27 post-earnings conference call of Jyoti Resins and Adhesives Limited. Today, from the management, we have with us Mr. Utkarsh Patel, Managing Director, and Mr. Samit Shah, Chief Operating Officer.

Speaker #3: As a disclaimer, I would like to inform all of you that this call may contain forward-looking statements, which may involve risks and uncertainties. Also, a reminder that this call is being recorded.

Speaker #3: I would now request the management to give us their opening remarks, briefing us about the business and performance highlights for the period ended June 2026, the growth plan, and vision for the coming year, post which we will open the floor for Q&A.

Speaker #3: Over to the management team.

Utkarsh Patel: Ladies and gentlemen, I welcome you all to this call for Q1 FY27. At the outset, Q1 started off on a very tough note in terms of global uncertainties and unrest in West Asia, which led to the sharp spikes in crude prices and freight rates, subsequently impacting our key raw material price, which also appreciated sharply. Since we are light on inventory of raw materials as well as finished goods, we had to take the impact of the sharp rise in raw materials price. The price increases happened gradually in May and June, and this will help normalize margins at 23% to 25% levels in Q2. Revenue growth stood at 17%, of which nearly 10% was contributed by volumes, while the balance was led by price increases.

Speaker #4: Ladies and gentlemen, I welcome you all to this call for quarter one, FY27. At the outset, quarter one started off on a very tough note in terms of global uncertainties and unrest in West Asia, which led to sharp spikes in crude prices and freight rates, subsequently impacting our key raw material prices, which also appreciated sharply.

Speaker #4: Since we are light on inventory of raw materials as well as finished goods, we had to take the impact of the sharp rise in raw material prices.

Speaker #4: The price increases happened gradually in May and June, and this will help normalize margins at 23 to 25 percent levels in Q2. Revenue growth stood at 17 percent, of which nearly 10 percent was contributed by volumes, while the balance was led by price increases.

Speaker #4: Despite a dynamic operating environment and volatility in key raw material prices, the company has continued to demonstrate resilience, disciplined execution, and a clear growth orientation.

Utkarsh Patel: Despite a dynamic operating environment and volatility in key raw material prices, the company has continued to demonstrate resilience, disciplined execution, and a clear growth orientation. Our performance in the quarter reflects the strength of our Euro brand, our deep distribution reach, and the trust we enjoy among carpenters and channel partners across India. During the quarter, we continued to strengthen our market position in the wood adhesive segment. Our business model remains anchored on three core pillars: brand-led demand creation, strong carpenter engagement, efficient manufacturing, and distribution execution. One of the most important developments for our future growth is the ongoing capacity expansion program. We are progressing towards increasing our manufacturing capacity from 2,000 tons per month to 3,500 tons per month, which we believe will support the next phase of volume growth and market share expansion.

Speaker #4: Our performance in the quarter reflects the strength of our Euro brand, our deep distribution reach, and the trust we enjoy among carpenters and channel partners across India.

Speaker #4: During the quarter, we continued to strengthen our market position in the wood adhesive segment. Our business model remains anchored on three core pillars: brand-led demand creation, strong carpenter engagement, and efficient manufacturing and distribution execution.

Speaker #4: One of the most important developments for our future growth is the ongoing capacity expansion program. We are progressing towards increasing our manufacturing capacity from 2,000 tons per month to 3,500 tons per month.

Speaker #4: We believe this will support the next phase of volume growth and market share expansion. This expansion is being undertaken with a long-term perspective and is aligned with our broader aspiration of building a significantly larger adhesives franchise over the coming years.

Utkarsh Patel: This expansion is being undertaken with a long-term perspective and is aligned with our broader aspiration of building a significantly larger adhesives franchise over the coming years. This is also in line with our foray into UP and now entry into Jharkhand markets. We are also opening one more state in Q2, details of which we will share with you the next quarter. We are also encouraged by the continued expansion of our carpenter network and our increasing penetration in the both existing and new markets. The response to the Euro brand remains encouraging, and we believe that sustained investment in brand building, distribution, and customer relationships will continue to strengthen our competitive position. Our registered carpenter base has increased to 210,000 carpenters. Importantly, we continue to maintain a strong balance sheet with zero debt, healthy cash generation, and robust return ratios.

Speaker #4: This is also in line with our foray into UPN and our entry into Jharkhand markets. We are also opening one more state in Quarter 2.

Speaker #4: Details of which we will share in the next quarter. We are also encouraged by the continued expansion of our carpenter network and our increasing penetration in both existing and new markets.

Speaker #4: The response to the Euro brand remains encouraging, and we believe that sustained investment in brand building, distribution, and customer relationships will continue to strengthen our competitive position.

Speaker #4: Our registered carpenter base has increased to 210,000 carpenters. Importantly, we continue to maintain a strong balance sheet with zero debt, as well as strong cash generation and robust return ratios.

Speaker #4: This financial strength provides us with the flexibility to invest in growth while maintaining prudent capital allocation and a focus on our shareholders. As we look ahead, our priorities remain unchanged.

Utkarsh Patel: This financial strength provides us the flexibility to invest in growth while maintaining prudent capital allocation and shareholder focus. As we look ahead, our priorities remain unchanged. Drive volume growth, expand market reach, improve operating efficiencies, maintain healthy margins, create long-term value for all stakeholders. We remain confident about the structural growth opportunity in the Indian wood adhesives market, supported by housing demand, furniture manufacturing, interior renovations, and increasing formalization of the industry. With that, I would now be open to take questions and answers.

Speaker #4: Drive volume growth, expand market reach, improve operating efficiencies, maintain healthy margins, and create long-term value for all stakeholders. We remain confident about the structural growth opportunity in the Indian wood adhesives market, supported by housing demand, furniture manufacturing, interior renovations, and increasing formalization of the industry.

Speaker #4: With that, I would now be open to take questions and answers.

Speaker #1: Thank you, sir, for your opening remarks. All those who wish to ask a question may use the 'Raise Hand' option. In case you are unable to raise your hand, just drop your question in the Q&A box and we'll ask on your behalf.

[Company Representative] (Captify Consulting): Thank you, sir, for your opening remarks. All those who wish to ask a question may use the option of raise hand. In case you are unable to raise your hand, just drop your question in the Q&A box and we will ask on your behalf. Sir, we will take the first question from Ritika Seth. Ritika, you can go ahead.

Vinay Pandit: Thank you, sir, for your opening remarks. All those who wish to ask a question may use the option of raise hand. In case you are unable to raise your hand, just drop your question in the Q&A box and we will ask on your behalf. Sir, we will take the first question from Ritika Seth. Ritika, you can go ahead.

Speaker #1: Sir, we'll take the first question from Ritika Shet. Ritika, you can go ahead.

Ritika Seth: Hello. Congratulations for a decent set of top line. But there have been consistent concerns regarding the progress of our planned vision. Considering your investor presentation, slide 15, which states the capacity expansion tons per month. By FY29, we plan to execute the capacity expansion from 2,000 tons in totality to 3,500 tons. Right? Overall. So in that, the capacity utilization we anticipate is 60% to 70% considering. So what is the total revenue figure you have planned before we go ahead with the greenfield expansion? That is first question. What are the margins which you anticipate by FY29? The reason why I am very skeptical in asking you this question is because we had to plan the raw material and input cost inventory planning much beforehand, which we failed to do so for the quarter.

[Analyst 1]: Hello. Congratulations for a decent set of top line. But there have been consistent concerns regarding the progress of our planned vision. Considering your investor presentation, slide 15, which states the capacity expansion tons per month. By FY29, we plan to execute the capacity expansion from 2,000 tons in totality to 3,500 tons. Right? Overall. So in that, the capacity utilization we anticipate is 60% to 70% considering. So what is the total revenue figure you have planned before we go ahead with the greenfield expansion? That is first question. What are the margins which you anticipate by FY29? The reason why I am very skeptical in asking you this question is because we had to plan the raw material and input cost inventory planning much beforehand, which we failed to do so for the quarter.

Speaker #5: Hello. Congratulations on a decent set of top-line numbers, but you know there have been consistent concerns regarding the progress of our planned vision. So, considering your investor presentation, slide number 15, which states the capacity expansion in tonnes per month by FY29, we plan to execute the capacity expansion from 2,000 tonnes in totality to 3,500 tonnes, right? Overall.

Speaker #5: So in that, the capacity utilization we anticipate is 60 to 70 percent, considering. So what is the total revenue figure you have planned before we go ahead with the greenfield expansion?

Speaker #5: That is the first question. And what are the margins which you anticipate by FY29? The reason why I am very skeptical in asking you this question is because, you know, we had to plan the raw material and input cost inventory much beforehand, which we failed to do so.

Speaker #5: For the quarter. So how do we plan to forecast, to do that in the next 18 months, considering the worst-case scenario that the geopolitical crisis continues and stability does not arise?

Ritika Seth: How do we plan to forecast to do that in the next 18 months, considering the worst-case scenario that the geopolitical crisis continues and stability does not arise? Kindly please share some and throw some light on the same. Thank you.

[Analyst 1]: How do we plan to forecast to do that in the next 18 months, considering the worst-case scenario that the geopolitical crisis continues and stability does not arise? Kindly please share some and throw some light on the same. Thank you.

Speaker #5: So, kindly please share some insights and throw some light on the same. Thank you.

Utkarsh Patel: That's a very good question. So, answer to your first question is, you are very right that about 10% almost growth we have taken from Q1 YOY. So now, about the concern about the growth plan expansion. As you know that about almost 60% now we are utilizing our capacity. So that was the vision we have created. That's why we are now moving to the 3,500 ton per month capacity, and it was mentioned into Q2 FY27. So almost 80% work has done, and within one or two months, we will be ready with this capacity. So that can generate almost INR 600 to 650 crores of revenue from here. And for the next phase, what greenfield facility we are going to do. So that was for the longer-term plan that for enable for the INR 1,000 crore of revenue vision.

Speaker #4: That's a very good question. So, the answer to your first question is: you are very right, about 10 percent growth has been achieved from quarter one year-on-year.

Speaker #4: So now, about the concern regarding the growth plan expansion. As you know, we are currently utilizing almost 60 percent of our capacity.

Speaker #4: So that was the vision we have created. That's why we are now moving to the 3,500-ton-per-month capacity, and it was mentioned into Q2 FY27.

Speaker #4: So, almost 80 percent of the work has been done, and within one or two months we will be ready with this capacity. That can generate almost ₹600 to ₹650 crore of revenue from here.

Speaker #4: And for the next phase, what Greenfield facility are we going to do? So that was for the longer-term plan, to enable the ₹1,000 crore revenue vision.

Speaker #4: So that will be done partly and it will be possible with the internal accruals. So, ₹45 to ₹50 crore rupees initial capex and mainly that—20 to 50 percent will be the land part and 50 percent will be the construction, and remaining part.

Utkarsh Patel: That will be done by the partly and it will be possible with the internal accruals. So INR 45 to 50 crore initial CapEx, and mainly that 50% will be the land part and 50% will be the constructions and remaining parts, machineries and everything. So initially, we'll build the additional 1,500 ton per month capacity into that greenfield. And phase-wise we'll add as per the requirement. So, yes, we'll be ready for that. And regarding raw material procurement, yes, you are right that we are at 30 days of inventory right now as per our revenue generations. But now we have also improved into that part. And for the Q2, we have done the contract for the 90 days with our raw material suppliers, importers.

Speaker #4: Machineries and everything. So we'll initially we'll build the additional 1,500 ton per month capacity into that Greenfield. And phase wise we'll add as per the requirement.

Speaker #4: So yes, we'll be ready for that, and regarding raw material procurement, yes, you are right that we are at 30 days of inventory right now as per our revenue generations.

Speaker #4: But now we have also improved in that part, and for the quarter two, we have done the contract for 90 days with our raw material suppliers.

Speaker #4: Importers. But because of that, the situation was very critical at that time and we tried our best to make the contract for 90 days, but as you know, the situation was very unstable in March and April.

Utkarsh Patel: But because of that situation was very critical at that time, and we tried our best to make the contract for the 90 days. But as you know, that the situation was very unstable into the March and April. So that was the sudden rise and these geopolitical issues and war issues, we were not able to get the deal from the suppliers. And that affect our EBITDA for the Q1. But now we are very much confident about that. For the 22% to 25% EBITDA margin we have guided, we'll be able to maintain that. So, this is how our plan is.

Speaker #4: So that was the sudden rise, and due to these geopolitical and war issues, we were not able to get the deal from the suppliers. And that affected our EBITDA for Q1.

Speaker #4: But now we are very much confident about the 20 to 25 percent EBITDA margin we have guided. We'll be able to maintain that.

Speaker #4: So, this is how our plan is.

Speaker #5: Thank you, but just one question here. So, the revenue which you guided—₹600 to ₹650 crore—that will be for FY27 balance, meaning Q2, Q3, and Q4, right?

Ritika Seth: Thank you, Utkarsh. Well, but just one question here. So the revenue which you guided, INR 600 to 650 crores, that will be for FY27 balance, meaning Q2, Q3, Q4, right?

[Analyst 1]: Thank you, Utkarsh. Well, but just one question here. So the revenue which you guided, INR 600 to 650 crores, that will be for FY27 balance, meaning Q2, Q3, Q4, right?

Utkarsh Patel: No. We have guided that CapEx, what we have done 3,500 ton per month, so that can generate INR 600 crore of revenue for the existing plant.

Speaker #4: No, we have guided that the capex we have done is for 3,500 tons per month. So, that can generate Rs. 600 crore of revenue for the existing plant.

Ritika Seth: Okay.

[Analyst 1]: Okay.

Speaker #5: Okay.

Utkarsh Patel: What the brownfield we have-

Speaker #4: Brownfield.

Ritika Seth: From next financial year onwards or from when? Because that capacity will be on from next month, right?

[Analyst 1]: From next financial year onwards or from when? Because that capacity will be on from next month, right?

Speaker #5: How much, financially or otherwise, or from when? Because that capacity will be on from next month, right?

Speaker #4: Next month, right? So that can generate ₹600 to ₹650 crore of revenue from the existing plant. So our capex is done for the ₹650 crore.

Utkarsh Patel: Next month, right. So that can generate the INR 600 to 650 crores of revenue from existing plant. So our CapEx is done for the INR 650 crore.

Speaker #5: Okay, okay. And did we actually take stringent supplier contracts for raw material costs immediately, or—I mean, how do you foresee the FY27 EBITDA margin?

Ritika Seth: Okay. Did we actually take stringent supplier contracts for raw material cost immediately? How do you foresee the FY27 EBITDA margin? Will we end on a 23% to 25% EBITDA margin level? Or because of this one quarter being dampened, the overall EBITDA margins for FY27 will be dented? That is the question.

[Analyst 1]: Okay. Did we actually take stringent supplier contracts for raw material cost immediately? How do you foresee the FY27 EBITDA margin? Will we end on a 23% to 25% EBITDA margin level? Or because of this one quarter being dampened, the overall EBITDA margins for FY27 will be dented? That is the question.

Speaker #5: I mean, will we end on a 23% to 25% EBITDA margin level, or, because of this one quarter being dampened, will the overall EBITDA margins for FY27 be dented?

Speaker #5: That is the question.

Utkarsh Patel: I think it will affect obviously, Q1 EBITDA is now 16% around, so it will affect all our four quarters. But we will try our best at how can we maintain our 22% to 25% EBITDA guidance for the longer term. See, this is very exceptional situations, and it was beyond the control. Because if you see the effect of this 10% EBITDA is because of the mainly 6% to 7% because of the raw material prices. So our gross block is affected because of these situations. Otherwise, remaining 3% to 4%, we have invested, as an example, we have do sales promotion into Q1 very aggressively for the dealer segment. So we have done almost 54 dealer meets, 54 territories we covered into the Q1, and that almost INR 4.5 crore invested into that. So that is effect for that also.

Speaker #4: I think it will have an effect. Obviously, Quarter 1 EBITDA is now around 16 percent. So, it will affect all four quarters. But we'll try our best to see how we can maintain our guidance of above 22 to 25 percent EBITDA for the longer term.

Speaker #4: See, this is a very exceptional situation and it was beyond our control. Because if you see, the effect on this 10 percent EBITDA is mainly due to six to seven percent increase in raw material prices.

Speaker #4: So, our gross block is affected because of these situations. Otherwise, the remaining three to four percent we have invested, as an example, we have done sales promotion in quarter one very aggressively for the dealer segment.

Speaker #4: So, we have done almost 54 dealer meets—54 territories we covered in quarter one. And that's almost ₹2.5 crore rupees invested into that.

Speaker #4: So that is ₹4.5 crore invested into that. So that is the effect for that also.

Speaker #5: Okay, perfect. And what are the EBITDA margins for the emerging states versus the core six states, where we have already penetrated more than 30%?

Ritika Seth: Okay, perfect. What are the EBITDA margins for the emerging states versus the core six states, which we are already penetrated more than 30%? What are the margins fluctuated? Because we would be giving more incentives to the carpenters in the growing states, right? So what will be the difference in margin?

[Analyst 1]: Okay, perfect. What are the EBITDA margins for the emerging states versus the core six states, which we are already penetrated more than 30%? What are the margins fluctuated? Because we would be giving more incentives to the carpenters in the growing states, right? So what will be the difference in margin?

Speaker #5: Why have the margins fluctuated? Because we would be giving more incentives to the carpenters in the growing states, right? So what will be the difference in margins?

Utkarsh Patel: Yeah, that is vary to vary. It is very micro, what you are asking for the data. Because now we are into the almost 100 cities and almost 65 territories we are operating. So it is micro to micro. But yes, of course, in the newer states, we have the attractive margins for the carpenters and for the dealers also to penetrate more and to make the network. So initially, two, three years is always situations that we need to set our product and create the more pool about that. But all our guidance is we are very confident about the 22%, 25% of EBITDA, what we have also earlier mentioned, already maintained last four, five years.

Speaker #4: Yeah, that is too very—it's very micro, what you are asking for, the data. Because now we are into almost 100 cities and almost 65 territories we are operating in.

Speaker #4: So it is micro to micro. But yes, of course, in newer states we have attractive margins for the carpenters and for the dealers also to penetrate more and to build the network.

Speaker #4: So, initially, for two to three years, the situation is that we need to set our product and create a larger pool for that. But overall, as guidance, we are very confident about the 22–25% EBITDA, which, as we have also mentioned earlier, has already been maintained for the last four to five years.

Ritika Seth: Sure. Thank you.

[Analyst 1]: Sure. Thank you.

Speaker #5: Sure. Thank you.

Speaker #4: Thank you. Thank you.

Utkarsh Patel: Thank you.

Ritika Seth: All the best.

[Analyst 1]: All the best.

Utkarsh Patel: Thank you.

Speaker #5: Thank you. Sir, we'll take the next question from Smithgala. Smith, you can go ahead, please.

[Company Representative] (Captify Consulting): Thank you. Sir, we will take the next question from Sumit Ghana. Sumit, you can go ahead, please.

Vinay Pandit: Thank you. Sir, we will take the next question from Sumit Ghana. Sumit, you can go ahead, please.

Sumit Ghana: Yeah. Thank you for the opportunity. My first question will be, while I understand the raw material prices were elevated and which took a major impact on the gross margins, I have noticed a sequential increase in employee expenses as well from INR 9 crores to INR 11 crores, or a 25% odd increase. So what were the reasons, and will these expenses remain elevated in the coming period? Secondly, we have taken price increase from around mid-May onwards, and crude prices since then have pulled up a bit. Yes, still higher than the normalized levels, but the price increases have been also taken. So can we see one quarter of above normal margins of 20% to 25%, like 28%, 29% margins for one quarter, Q2? That is my first question.

[Analyst 2]: Yeah. Thank you for the opportunity. My first question will be, while I understand the raw material prices were elevated and which took a major impact on the gross margins, I have noticed a sequential increase in employee expenses as well from INR 9 crores to INR 11 crores, or a 25% odd increase. So what were the reasons, and will these expenses remain elevated in the coming period? Secondly, we have taken price increase from around mid-May onwards, and crude prices since then have pulled up a bit. Yes, still higher than the normalized levels, but the price increases have been also taken. So can we see one quarter of above normal margins of 20% to 25%, like 28%, 29% margins for one quarter, Q2? That is my first question.

Speaker #3: Yeah, thank you for the opportunity. So, my first question will be: While I understand the raw material prices were elevated and this had a major impact on gross margins,

Speaker #3: I have noticed a sequential increase in the employee expenses as well, from 9 crores to 11 crores, or about a 25 percent increase. So, what were the reasons, and will these expenses remain elevated in the coming period?

Speaker #3: Secondly, we have taken price increases from around mid-May onwards, and crude prices since then have pulled off a bit. Yes, they are still higher than the normalized levels.

Speaker #3: But the price increases have also been taken. So, can we see one quarter of above-normal margins of 23 to 25 percent—like 28, 29 percent margins—for one quarter, in quarter two?

Speaker #3: That is my first question.

Speaker #4: Yes, you are very right. Employee cost has increased because we have hired new talent also. And now, we have increased our sales force from 520 to 562 people.

Utkarsh Patel: Yeah. Yes, you are very right. Employee cost has increased because we have hired new talents also. Now we have increased our sales force from 520 to 562 people. So for the newer territories also, for the existing territory also. We are driving our growth very aggressively, and we are covering both part sales and marketing and promotions and everything. As I mentioned that 54 dealer meets, actually it was in Q1, but actually it was in only 45 days. That was done between 16 April to 30 May. That was done by our entire team and the aggressive efforts going on. We want to cover and going more deeper to cover all the markets. So we are hiring new talents. We are hiring for the business administrations, business operation side also.

Speaker #4: So for the newer territories and also for the existing territories, we are driving our growth very aggressively. We are covering both parts – sales and marketing, promotions, and everything.

Speaker #4: As I mentioned, those 54 dealer meets actually took place in quarter one, but they happened within only 45 days. So that was between 16th April and 30th May.

Speaker #4: So, that was done by our entire team, and the aggressive efforts are ongoing. So, we want to cover and go deeper to cover all the markets.

Speaker #4: So, we are hiring new talent. We are hiring for the business administration and business operation side also. So, all these efforts are going on, and that is the reason. Plus, the appraisals part is also coming up in April.

Utkarsh Patel: So these all efforts are going on and that is the reason that. Plus also the appraisals part also coming into the April. That is why this employee cost is increased. But we are very much confident that we will be in control of around 11% to 13% of around what are the mainly industry standard for the employee cost. That is also a good part that we are in control regarding that. Yes, because of the raw material crisis, EBITDA is impacted. For now it is a little bit cooling period for the raw material, but not at that original level that arrived yet. So it is too early to say that we can maintain the 28%, 29% EBITDA in Q2 or not. But our effort is mainly for the growth part.

Speaker #4: So that's why these employee costs have increased. But we are very much confident that we'll be in control, around 11 to 13 percent, which is mainly the industry standard for employee cost.

Speaker #4: So that is also a good part, that we are in control regarding that. And yes, because of the raw material crisis, EBITDA is impacted. For now, it is a little bit of a cooling period for the raw material, but it has not yet arrived at those original levels.

Speaker #4: So, it is too early to say that we can maintain the 28 percent, 29 percent EBITDA in Quarter Two or not. But our effort is mainly for the growth path, and the main thing is important is, though we have increases or taken the price rise in the April and May months.

Utkarsh Patel: The main thing is important is though we have increased it or taken the price rise into April and May, that is also a good part that though we have increased the price, we are able to maintain that 10% of volume growth. It means that our brand is acceptable, our relationship, our distribution network, whatever, it is working in a good direction. That can I assure that we are always thinking about the customer first. It is too early to say that we can rather maintain the 28% EBITDA into Q2. But as I said that about the longer term, we are confident about the 22% to 25% EBITDA margin.

Speaker #4: So that is also a good part, that though we have increased the price, we are able to maintain that 10 percent volume growth. It means that our brand is acceptable.

Speaker #4: Our relationship, our distribution network—whatever it is—is working in a good direction. So, that way, I can assure you that we are always thinking about the customer first.

Speaker #4: So, it is too early to say that we can maintain the 28 percent EBITDA into Q2. But, as I said earlier, in the longer term we are confident about the 22 to 25 percent EBITDA margin.

Speaker #3: Okay, so the next question: while I understand these employee expenses are at a steady state run rate, are there any chances of these expenses cooling down from here?

Sumit Ghana: Okay. The next question, while I understand this employee expenses are a steady state run rate, whether there are no chances of these being cooling down from here. This is what I understand. Next, there was you covered that INR 4.5 crores were invested into dealer meets in Q1. So I understand we do generally do dealer meets, but they were elevated in Q1. So what are the generalized expenses in the dealer meets we carry on in a normal quarter?

[Analyst 2]: Okay. The next question, while I understand this employee expenses are a steady state run rate, whether there are no chances of these being cooling down from here. This is what I understand. Next, there was you covered that INR 4.5 crores were invested into dealer meets in Q1. So I understand we do generally do dealer meets, but they were elevated in Q1. So what are the generalized expenses in the dealer meets we carry on in a normal quarter?

Speaker #3: This is what I understand. Next, if you ask, you covered that ₹4.5 crores were invested into dealer meets in Q1.

Speaker #3: So I understand we do generally do dealer meets, but they were elevated in Q2 and Q1. So what are the general expenses for the dealer meets we carry out in a normal quarter?

Utkarsh Patel: See, last year actually we have done almost 30 dealer meets and the expense was almost, investment was almost INR 2 crores around. This time it is additionally INR 2.5 crores we had. This is how we do, but it depends upon vary to vary upon the market situations and everything. But as we are now focusing on more with our channel partners, for the dealers, for the carpenters, all efforts are going together.

Speaker #4: See, last year actually we have done almost 30 dealer meets and the expense, the investment, was almost ₹2 to ₹2.5 crores. And this time it is additionally ₹2.5 crores we had.

Speaker #4: So, this is how we do. But it depends very much on the market situations and everything. But, as we are now focusing more on our channel partners, for the dealers, for the carpenters.

Speaker #4: So, all efforts are going together.

Speaker #3: Okay. And final question from my side. We were targeting around 20 percent revenue growth. Can you split that between what quantum of that will come from volume and what will come from price?

Sumit Ghana: Okay. Final question from my side. We were targeting around 20% of the revenue growth. Can you split between what quantum of that will come from volume and what will come from price? Because this guidance was after Q4, considering the geopolitical situation, because not considering the price hike. So can we expect a better revenue growth considering the price hike now?

[Analyst 2]: Okay. Final question from my side. We were targeting around 20% of the revenue growth. Can you split between what quantum of that will come from volume and what will come from price? Because this guidance was after Q4, considering the geopolitical situation, because not considering the price hike. So can we expect a better revenue growth considering the price hike now?

Speaker #3: Because this guidance was after Q4, considering the geopolitical situation, but not considering the price hike, can we expect better revenue growth now that the price hike is being factored in?

Utkarsh Patel: Yeah, see, we always believe for the volume growth, we need to more focus for the volume growth only. It is too early to say because as the situation was very unstable, that is why this price rise has taken for the market leaders also and for us also. But maybe the situation come back to normal after Q2. We do not know exactly right now the situations about that. It is dependent upon the market situation. Maybe we need to take a call to reduce the realization value also. But it is too early to say that. But right now if you can see that 70% of growth is from the revenue, so 10% is from the volume, so 7% is from the price rise. So maybe it can continue for the Q2 also. After that, it depends upon the market situations.

Speaker #4: Yeah. See, we always believe that for volume growth we need to focus more on the volume itself. And it is too early to say because the situation was very unstable, and that's why this price rise has been implemented by the market leaders as well as us.

Speaker #4: But maybe the situation will come back to normal after Q2. We don't know exactly right now the situation about that, and it depends upon the market situation.

Speaker #4: Maybe we need to take a call to reduce the realization value also, but it is too early to say that. Right now, if you can see, about 70 percent of the growth is from revenue.

Speaker #4: So, 10 percent is from the volume. So, 7 percent is from the price rise. So, maybe it can continue for Q2 also. After that, it depends upon the market situations.

Sumit Ghana: Sure.

[Analyst 2]: Sure.

Speaker #3: Sure.

Speaker #4: But yeah, we can say that we aim for always more than 15, 20 percent of volume growth and I hope this quarter one because of due to the situations also we were able to do this growth.

Utkarsh Patel: But yeah, we can say that we aim for always more than 15%, 20% of volume growth. I hope there is a Q1 because due to these situations also, we were able to do this growth, so it is a very positive sign for the coming quarters.

Speaker #4: So it's a very positive sign for the coming quarters.

Speaker #3: Okay, thank you. That was all from my side.

Sumit Ghana: Okay. Thank you. That was all from my side.

[Analyst 2]: Okay. Thank you. That was all from my side.

Speaker #4: Thank you.

Utkarsh Patel: Thank you.

[Company Representative] (Captify Consulting): Thank you, Sumit Ghana. We'll take the next question from Pawan Kumar. Pawan, you can go ahead, please.

Vinay Pandit: Thank you, Sumit Ghana. We'll take the next question from Pawan Kumar. Pawan, you can go ahead, please.

Speaker #1: Thank you, Smith. We'll take the next question from Pawan Kumar. Pawan, you can go ahead.

Pawan Kumar: Sir, can you just put out the carpenter points number, and also for the year, what are advertising expenses and sales and commission expenses expected to be separately?

[Analyst 3]: Sir, can you just put out the carpenter points number, and also for the year, what are advertising expenses and sales and commission expenses expected to be separately?

Speaker #3: Sir, can you just provide the Carpainter points number, and also for the year, what are the advertising expenses and sales and commission expenses expected to be, separately?

Speaker #4: So, that is already mentioned separately. So, sales promotion expense is already mentioned separately. And...

Utkarsh Patel: That is already mentioned separately. Sales promotion expense is already mentioned separately and-

Pawan Kumar: No, for the year, I said. FY27, what do we expect?

[Analyst 3]: No, for the year, I said. FY27, what do we expect?

Speaker #3: So, for the year I said FY27, what do we expect for the sales promotion expense? You are saying that...?

Utkarsh Patel: For the sales promotion expense, you are saying that?

Speaker #4: Yes, yes. It is allowed to last year it was around 45 to 50 crore rupees around. So maybe it can be depends upon the what volume we can create.

Pawan Kumar: Yes, yes.

[Analyst 3]: Yes, yes.

Utkarsh Patel: Last year it was around INR 45 to 50 crore around.

Utkarsh Patel: Maybe it can be depends upon what volume we can create.

Utkarsh Patel: Maybe it can be depends upon what volume we can create. That can be considered as a 10% plus for this year.

Utkarsh Patel: That can be considered as a 10% plus for this year.

Speaker #4: And that can be considered as a 10% plus for this year.

Speaker #3: So you are saying ₹45 to ₹50 crores means 10 percent additional on that, correct?

Pawan Kumar: You are saying INR 45 to 50 crores means 10% additional on that, correct?

[Analyst 3]: You are saying INR 45 to 50 crores means 10% additional on that, correct?

Utkarsh Patel: Yeah. That is sales promotion expense, it covers the loyalty program, the redemptions, the carpenters. That is covering to that program. For advertising and branding, we have targeted for the 6% to 7% of the revenue.

Speaker #4: Yeah, yeah. The sales promotion expense means it covers the loyalty program, the redemptions, the carpenters—that is covered in that program. And for advertising and branding, we have targeted around six to seven percent of the revenue.

Utkarsh Patel: That covers trade marketing, the carpenter meets, dealer meets, the branding, the mass communication. That is covering to that.

Speaker #4: That covers trade marketing, the carpenter meets, dealer meets, the branding, the mass communication. That is covered into that.

Speaker #3: So that is six to seven percent of the revenue, correct?

Pawan Kumar: So that is 6% to 7% of the revenue, correct?

[Analyst 3]: So that is 6% to 7% of the revenue, correct?

Utkarsh Patel: Right. We aim for that. So right now currently we reached to 4% around.

Speaker #4: Right, right. We aim for that. So, right now, currently, we have reached around 4%. And after this—quarter two—see, quarter three and quarter four are the months where the market is very much open.

Pawan Kumar: Okay

[Analyst 3]: Okay

Utkarsh Patel: After this quarter to see Q3 and Q4 is the month where the market is very much open to maintain these activities regarding carpenters and dealers and everything. So that is always the month that we can put more efforts into these brand communications and trade marketing also. But all over, if we consider for the yearly wise, then yes, we are targeting towards 6% to 7% from the revenue.

Speaker #4: To maintain these activities regarding carpenters and dealers and everything, that is always the month when we can put more efforts into brand communications and trade marketing also.

Speaker #4: But overall, if we consider it on a yearly basis, then yes, we are targeting for you six to seven percent from the revenue.

Speaker #3: Okay. And now, what about the carpenter points for this particular quarter?

Pawan Kumar: Okay. What about the carpenter points for this particular quarter?

[Analyst 3]: Okay. What about the carpenter points for this particular quarter?

Utkarsh Patel: See, I always mention that it depends upon the market to market because in newer territory, we are passing almost 20% to 30% to the carpenter points. For the older and mature market, we are passing almost 7% to 8%. It is between the 7% to 13%, so averagely it is maintained 11%, 10% around. For the dealer it is also the same situation.

Speaker #4: See, I always mentioned that it depends upon the market to market, because in newer territory we are passing almost 22 to 13 percent to the carpenter points.

Speaker #4: And for the older and mature market, we are passing almost 7 to 8 percent. So it is between the two, 7 to 13 percent.

Speaker #4: So, on average, it is maintained at around 11–12 percent. And for the dealer, it is also the same.

Speaker #3: Okay. And what about these carpenter sales that you add in the revenues? What percentage would that be for this quarter? The sales, like you had some amount of sales in the top line, right?

Pawan Kumar: Okay. What about this carpenter sales that you add in the revenues, what percentage would be that being for this quarter?

[Analyst 4]: Okay. What about this carpenter sales that you add in the revenues, what percentage would be that being for this quarter?

Utkarsh Patel: Carpenter?

Pawan Kumar: The sale. You had some amount of sales in the top line, right? For the carpenter.

[Analyst 4]: The sale. You had some amount of sales in the top line, right? For the carpenter.

Speaker #3: For the carpenter?

Speaker #4: Okay. You are asking about the difference between the redemptions and the ratios. So it is around four crore rupees.

Utkarsh Patel: Okay, you are asking about the difference between the redemptions and the ratio.

Pawan Kumar: Yeah.

[Analyst 4]: Yeah.

Utkarsh Patel: It is around INR 4 crore.

Pawan Kumar: Okay.

[Analyst 4]: Okay.

Speaker #3: Okay. Okay. Thank you. Thank you. That's all from my side.

Pawan Kumar: Okay. Thank you.

[Analyst 3]: Okay. Thank you.

Utkarsh Patel: Thank you.

Pawan Kumar: That is all from my end.

[Analyst 3]: That is all from my end.

[Company Representative] (Captify Consulting): Thank you, Pawan. Sir, we will take the next question from Saket Saraogi. Saket, you can go ahead, please.

Vinay Pandit: Thank you, Pawan. Sir, we will take the next question from Saket Saraogi. Saket, you can go ahead, please.

Speaker #1: Thank you, Pawan. Sir, we'll take the next question from Saket Sarogi. Saket, you can go ahead, please.

Speaker #2: No, like what were the prices of the three raw materials in March, and what are they now? What had gone up, and what is the price now?

Saket Saraogi: What were the prices of the key raw material in March and what is it now after. Till what point it had gone and till now, what is the price?

[Analyst 5]: What were the prices of the key raw material in March and what is it now after. Till what point it had gone and till now, what is the price?

Speaker #4: So see, for these white glues, the key raw material is VAM—vinyl acetate monomer. So it is, on average, around 75 to 78 rupees per kg.

Utkarsh Patel: So see, for this white glue, this is the key raw material is VAM, vinyl acetate monomer. It is averagely INR 75 to INR 78 around per kg. That in March last 10 days, it went up to the INR 170, INR 180, and it was also remaining to April month also. After that set back to 150, 135. It is very volatile every week, every two, three days. That was a commodity product. But right now it is set to almost INR 100 per kg.

Speaker #4: And in March, for the last 10 days, it went up to 170, 180 rupees. And it also remained at that level through April. After that, there was a setback to 150, 130.

Speaker #4: So, it is very volatile—every week, every two, three days—that was a commodity product. But right now, it is set to almost ₹100 per kg.

Saket Saraogi: So from March till now, the price hike we have taken, what percentage would be the price hike we have taken?

[Analyst 5]: So from March till now, the price hike we have taken, what percentage would be the price hike we have taken?

Speaker #2: So, from March till now, the price hikes we have taken—what percentage would those price hikes amount to?

Speaker #4: So it was almost half price that we have taken because it was taken in the middle of May. So almost 4% was taken in April and 11% was taken in May.

Utkarsh Patel: It was half price almost we have taken because it was taken into the mid of May month. Almost 4% was taken into the April and 11% was taken into the May. But we can consider that was taken from the mid of the quarter. Almost I think 7% of price rise we have taken right now.

Speaker #4: But we can consider that was taken from the middle of the quarter. So, almost, I think, a 7% price rise we have taken right now.

Saket Saraogi: Like from March till now.

[Analyst 5]: Like from March till now.

Utkarsh Patel: For the Q1, I am saying.

Speaker #4: For the quarter— for the quarter one, I'm saying.

Speaker #2: Okay. So for Q2, we haven't taken any increase for.

Saket Saraogi: Okay. For Q2, we haven't taken any increase for.

[Analyst 5]: Okay. For Q2, we haven't taken any increase for.

Utkarsh Patel: No. Q2, we have not taken any increase. It remains same as we have increased into the mid-May month. Right now it is continuous.

Speaker #4: No, no. In quarter two, we have not taken any increase. It remained the same as what we increased in mid-May. So, right now it is continuing.

Speaker #2: So, sir, have we seen any adverse impact because of this price increase in the sales after May, maybe?

Saket Saraogi: So sir, have we seen any adverse impact because of this price increase in the sales after May, maybe?

[Analyst 5]: So sir, have we seen any adverse impact because of this price increase in the sales after May, maybe?

Utkarsh Patel: Actually, it was impacted on that particular days where the situation was not normal. Yes, of course, customer were waiting for the price decrease also. They have put some projects onto the hold. I think, I believe that was the scenario all over across India regarding the building constructions. But after June month, we got the traction and July we are seeing that it's a good month versus demand wise, and maybe the project was very much onto the hold within this one month. So the demand was created again, and right now I think situation is normal. People has accepted that. That is a good part. What I'm trying to explain is that when your brand is acceptable, when all our operations are acceptable, then that is the only situation where a customer accepts the new price or these incredible price hikes.

Speaker #4: Actually, it was impacted on those particular days when the situation was not normal. And yes, of course, customers were waiting for the price decrease; also, they have put some projects on hold.

Speaker #4: And I think, I believe that was the scenario all over across India regarding the building constructions. But after June month, we got the traction, and July we are seeing that it's a good month.

Speaker #4: Versus demand-wise, and maybe the project was very much on hold within this one month. So that's why the demand was created again.

Speaker #4: And right now, I think the situation is normal. So people have accepted that. That is the good part—what I am trying to explain is that when your brand is acceptable, when all your operations are acceptable, then that is the only situation where customers accept the new price or these incredible price hikes.

Speaker #4: So that was expected, and we got that 10% volume growth. So that was a very good sign for us.

Utkarsh Patel: That was expected, and we got that 10% volume growth, so that was a very good sign for us.

Saket Saraogi: The volume growth we have got in this quarter, was it like that people, everybody knew that the crude prices have shot up, so maybe the price of the product will increase in future. So people have bought in advance before the price hike we took. Was it that the growth was front-ended and later part with the growth was lower?

[Analyst 5]: The volume growth we have got in this quarter, was it like that people, everybody knew that the crude prices have shot up, so maybe the price of the product will increase in future. So people have bought in advance before the price hike we took. Was it that the growth was front-ended and later part with the growth was lower?

Speaker #2: Will the volume growth we have got in this quarter, was it like that because people, everybody knew that the crude prices had shot up?

Speaker #2: So maybe the price of the product will increase in the future. So people have bought in advance before the price hike we took.

Speaker #2: So was it that the growth was front-ended and, like, later part, the growth was lower?

Speaker #4: No, you are very right, but it was in the month of March, actually. Because when I think about 15th March, the situation was unstable and the price almost went up.

Utkarsh Patel: No. You are very right, but it was into the March month actually. Because when, I think 15 March, the situation was unstable and the price almost goes up. So yes, of course, last 15 days March month, people have bought that inventory and procured their margins. But in April and May month, I am telling you about after 15 May, the price has already increased. So after that, it is not the situation where they can take this call. It has already increased. Though, what I explained at July month was that where all the sites are going very well, and the demands are coming back to the routine. So this is, I think, the situation happens to all companies right now.

Speaker #4: So yes, of course, in the last 15 days of March, people have bought that inventory and procured their margins. But in April and May—I’m telling you, after the 15th of May—the price has already increased.

Speaker #4: So after that, it is not the situation where they can take this call. It has already increased. But, as I explained, July was the month when all the sites were doing very well and the demands were coming back to routine.

Speaker #4: So, this is, I think, the situation that happens to almost all companies right now.

Saket Saraogi: Sir, you told in the current quarter, we have taken 54 dealer meets, right? Last year it was 30. So for this year, taking almost doubling these dealer meets, what has driven us to do like this? Because we have not added many major new states. We are already in the current states where we are. So why doubling these dealer meets? What it will help us in?

[Analyst 5]: Sir, you told in the current quarter, we have taken 54 dealer meets, right? Last year it was 30. So for this year, taking almost doubling these dealer meets, what has driven us to do like this? Because we have not added many major new states. We are already in the current states where we are. So why doubling these dealer meets? What it will help us in?

Speaker #2: So you're told in the current quarter we have taken, like, 54 dealer meets, and last year it was 30. So for this year, taking almost double these dealer meets, what has driven us to do this? Because we haven't added many major new states.

Speaker #2: We are already in the current state where we are. So why double these dealer meets? What helped? What will it help us with?

Speaker #4: Yeah, so it was the network and it was the drive we have taken, and what network or what investment we have done into the team, the channel partners.

Utkarsh Patel: Yeah. So it was the network, and it was the drive we have taken and what network or what investment we have done into our team, the channel partners. So this time we decided that we will go aggressively, and as I mentioned that we have made the budget for the 6% to 7%. So we decided to go aggressively and to connect more retailers, to make the strong relationship with them, to make the visibility of the brand. So all the territories, even smaller territories, we cover. So the last year, in April, May month, we have not that much of team or well-established, experienced people, and what investment we have done into the training and the inductions and everything. So it is all put together, we can say it is a drive we have decided, and that we were able to cover that in a very short period.

Speaker #4: So this time we decided that we'll go aggressively, and as I mentioned, we have made the budget for the 6 to 7 percent.

Speaker #4: So we decided to go aggressively and to connect with more retailers to build a strong relationship with them and to increase the visibility of the brand.

Speaker #4: So all the territories, even smaller territories, we cover. So the last time, last year in April–May month, we did not have that much of a team or well-established experienced people, and what investment we have done into the training and inductions and everything.

Speaker #4: So, altogether, we can say it's a drive we have decided on, and we were able to cover that in a very short period.

Saket Saraogi: Okay, sir. Last question. The 2,000 ton capacity we have, daily capacity we have shown on the presentation. What is the utilization as of last quarter?

[Analyst 5]: Okay, sir. Last question. The 2,000 ton capacity we have, daily capacity we have shown on the presentation. What is the utilization as of last quarter?

Speaker #2: Okay. So, last question: for the 2010 capacity, we have daily capacity based on the presentation. So, what would the utilization be as of last quarter?

Utkarsh Patel: This Q1 you are saying, right?

Speaker #4: This quarter one, you are saying that?

Speaker #2: Yes sir.

Saket Saraogi: Yes, sir.

[Analyst 5]: Yes, sir.

Utkarsh Patel: Yeah. This Q1 is almost 70%, 65% to 70% of total.

Speaker #4: Yeah. So, this quarter—Q1—is almost 55 to 70 percent of the total.

Speaker #2: Okay. So the next capacity, which we are putting up, will come live in this quarter. So our capacity will become 3,500.

Saket Saraogi: Okay. The next capacity which we are putting up will come live in this quarter. Our capacity will become 3,500.

[Analyst 5]: Okay. The next capacity which we are putting up will come live in this quarter. Our capacity will become 3,500.

Utkarsh Patel: Yes.

Speaker #4: Yes.

Speaker #2: So by when we expect to utilize this capacity 3500?

Saket Saraogi: By when we expect to utilize this capacity, 3,500?

[Analyst 5]: By when we expect to utilize this capacity, 3,500?

Utkarsh Patel: See, as I mentioned that capacity, CapEx, what we have done into the brownfield, that gives us the 3,500 tons. It can generate the INR 650 crores of revenue with the existing plant. We want to be very well prepared because as this is the asset-light model, and we have not invested much. But see, in this B2B, B2C model, these four, five months are the months where the sales goes very much up. As an example, in March month, we have done 2,400 tons per month. We need to be very well prepared about the averagely, we are doing 1,300 tons per month. But still, we need to prepare about that. That's why we have advance build our capacity to maintain these four, five months sales, so we cannot lose the sales into that particular months.

Speaker #4: See, as I mentioned, the capacity capex that we have done in the brownfield gives us 3,500 tons. So it can generate ₹650 crores of revenue with the existing plant.

Speaker #4: So, we want to be very well prepared because, as this is the asset-light model, we are not invested much. But see, in this B2B-B2C model, these four to five months are the months where the sales go very much up.

Speaker #4: As an example in March month we have done 2400 tons. So we need to be very well prepared about the average we are doing 1300 tons per month.

Speaker #4: But still we need to prepare about that. So that's why we have advanced built our capacity to maintain this four five months sales. So we cannot lose the sales into that particular months.

Utkarsh Patel: Yeah, we can aim for three years growth plan is INR 500 crore topline we want to achieve. We are aiming that at least within three to four years, we can able to generate this revenue, and we can fulfill our 100% capacity for the existing plant.

Speaker #4: So yeah, we can aim for a three-year growth plan. The target is a ₹500 crore topline that we want to achieve. So, we are aiming that at least within three to four years, we will be able to generate this revenue and we can fulfill our 100 percent capacity.

Speaker #4: For the existing plant.

Saket Saraogi: No, sir, I'm confused. You told that three, four years revenue target is INR 500 crores?

[Analyst 5]: No, sir, I'm confused. You told that three, four years revenue target is INR 500 crores?

Speaker #2: No sir, I'm confused. You said the three to four years revenue target is ₹500 crore. Like, total—like as of now—we are at ₹360 crore for the current quarter, right?

Utkarsh Patel: Yeah, right.

Saket Saraogi: Like total, like as of now we are INR 360 crore from current quarter 100.

[Analyst 5]: Like total, like as of now we are INR 360 crore from current quarter 100.

Utkarsh Patel: INR 340 crores. Okay. Current quarter you are saying. Okay.

Speaker #4: 314 crores. Okay. Current quarter, you are saying. Okay.

Speaker #2: It was almost ₹90 crore. So like that, by that, it will do ₹360 crore if that is taking the base. So in three or four years, you're targeting ₹500 crore.

Saket Saraogi: It was almost INR 90 crores.

[Analyst 5]: It was almost INR 90 crores.

Utkarsh Patel: Right.

Saket Saraogi: So by that it will do INR 360 crore if that is taking the base. In three, four years, we are targeting INR 500 crores. The growth is hardly, sir, 5%, 7%, 8%, 9% maximum, sir.

[Analyst 5]: So by that it will do INR 360 crore if that is taking the base. In three, four years, we are targeting INR 500 crores. The growth is hardly, sir, 5%, 7%, 8%, 9% maximum, sir.

Speaker #2: The growth is hardly five, seven percent, eight percent, nine percent maximum, sir.

Speaker #4: Right. So right now see I'm assuming about because this quarter is because of the revenue price has also increase also. The realization value also.

Utkarsh Patel: Right. So right now, see, I am assuming because this quarter is because of the revenue price has also increased also, the realization value also. I am considering that maybe the realization value come back to the normal, about the volume growth, if I consider, then we can count for the three years of INR 500 crores. In earlier conversations also in earlier calls, we have guided for the next three years INR 500 crores. If you consider about them, then it is a 15% to 20% of volume growth rate.

Speaker #4: So, I'm considering that maybe the realization value comes back to normal, and so about the volume growth—if I can see that, then we can count on three years of 500 crores.

Speaker #4: So in earlier conversations also earlier call we have guided for the next three years 500 crores. So it if it if you consider about then then it is a 15 to 20 percent of volume growth rate.

Saket Saraogi: Okay.

[Analyst 5]: Okay.

Utkarsh Patel: Now this is the additional benefit if the realization will be the same or we don't know the exact situation what will happen.

Speaker #4: So now this is the additional benefit, if the realization will be the same or we don't know the exact situation, what is happening.

Utkarsh Patel: Now this is the additional benefit if the realization will be the same or we don't know the exact situation what will happen.

Samit Shah: I'll just add into what MD sir is saying. We are getting future ready basically, and hence this investment, brownfield expansion and all. That's what we have been doing. We are in the transformation phase, and you might have seen, since Q4, we have been growing our volumes all across. We are coming with the new territories, onboarding new talents all across. There is a huge amount of development and groundwork is going on as we speak.

Speaker #2: I'll just add to what MD sir is saying. So, we are basically getting future-ready, and hence this investment in brownfield expansion and all. So that's what we have been doing.

Speaker #2: We are in the transformation phase, and you might have seen since Q4 that we have been growing our volumes all across. We are coming up with new territories and onboarding new talent all across.

Speaker #2: So, there is a huge amount of development and groundwork going on as we speak, right? And hence, despite all odds or despite adverse conditions, we have been able to garner a decent amount of volume growth, backed by price growth also, and overall that's why revenue growth is in the line of 18 percent quarter-on-quarter.

Samit Shah: Right. And hence, despite all odds or despite adverse conditions also, we have been able to garner a decent amount of volume growth, backed by price growth also. Overall, that's why our revenue growth is in the line of 18% quarter on quarter. I mean, over Q1 last year versus this year. This complete transformation journey is going on and to be future-ready, this investment has gone in all across, and it is going to reap huge benefits in the coming few quarters. Is what I can add in what Andreas has already said.

Speaker #2: I mean, over the last— I mean Q1 last year versus this year. So, this complete transformation journey is going on, and to be future-ready, this investment has gone in all across.

Speaker #2: And it is going to bring huge benefits in the coming few quarters. That is what I can add to what MD Sir has already said. Okay, sir.

Saket Saraogi: Okay, sir. Thank you so much.

[Analyst 5]: Okay, sir. Thank you so much.

Speaker #2: Thank you so much. Thank you, Satish. Sir, we'll take the next question from Vidhish Asher. Vidhish, you can go ahead, please.

Utkarsh Patel: Yeah.

[Company Representative] (Captify Consulting): Thank you, Satish. Sir, we'll take the next question from Vidish Asher. Vidish, you can go ahead, please.

Vinay Pandit: Thank you, Satish. Sir, we'll take the next question from Vidish Asher. Vidish, you can go ahead, please.

Speaker #5: Sir, congratulations on a good set of numbers. Sir, I would also like to congratulate you on having good volume growth. However, we had aimed for about 15–20 percent volume growth.

Vidish Asher: Sir, congratulations on a good set of numbers. Sir, congratulations on having good volume growth. However, we had aimed for about 15% to 20% of volume growth. Sir, I would like to understand, first of all, where did the volume growth come from? From our matured strong states or from the newer states? If you could give the mix. And, sir, how much are we expected to benefit from the price increase in the current quarter?

[Analyst 6]: Sir, congratulations on a good set of numbers. Sir, congratulations on having good volume growth. However, we had aimed for about 15% to 20% of volume growth. Sir, I would like to understand, first of all, where did the volume growth come from? From our matured strong states or from the newer states? If you could give the mix. And, sir, how much are we expected to benefit from the price increase in the current quarter?

Speaker #5: So so I would like to understand first of all where did the volume growth come from from our matured strong states or from the newer states and if you could give the mix.

Speaker #5: And sir what how much are we expected to benefit from the price increase in the current quarter?

Utkarsh Patel: Yes, of course, the volume growth is coming from the both together, I think. Because the volume is bigger into the existing five mature states. But that is also a very huge gap and more opportunity lies in to capture this volume also. As I mentioned that in Karnataka, we are at a 15% of market share, so still it is a very long journey to go to cover this volume. Plus, we are expanding the newer states, so we are focusing onto the east side. West Bengal is there, Telangana is there, North India is there. So we are targeting both territories to grow together. So that will come from the both mature states also and newer states also.

Speaker #4: Yes of course the volume growth is coming from the both together I think. Because the volume is more bigger into the existing five mature states.

Speaker #4: But that is also a very huge gap, and more opportunity lies in capturing this volume as well. As I mentioned, in Karnataka we are at a 15 percent market share.

Speaker #4: So, still, it is a very long journey to go to cover this volume. Plus, we are expanding into newer states. So, we are focusing on the east side.

Speaker #4: Most of West Bengal is there. The Telangana is there. The North India is there. So we are targeting both territories to grow together. So that will come from both mature states also and newer states also.

Speaker #5: Okay. So, what has been the response from the newer states? Has it been as expected or below? Could you shed some light on that?

Vidish Asher: Okay. So what has been the response from the newer states? Has it been as expected or below? Could you give us some light on that?

[Analyst 6]: Okay. So what has been the response from the newer states? Has it been as expected or below? Could you give us some light on that?

Utkarsh Patel: It is, I think, as expected. As I mentioned that it is a B2C model, and retail network is very time-taking models that we need to penetrate, and we need to set our network into the newer states where the existing brand is already there since last 10 years, 15 years and 20 years. So we are breaking that code and we are hiring talents. We are setting our network. So we were able to get the channel partners. We entered into the Jharkhand also. We entered into the North India, the deeper also. So these all are the parts that we expected about the placements of the products. We introduced ourselves. We said we are hiring the people. So I think that is in line what we are targeting. So it's a good response basically. In UP, it's a very good response for our product.

Speaker #4: It is I think as expected as I mentioned that it is a B2C model and retail network is very time taken models that we need to penetrate and we need to set our network into the existing the newer states where the existing brand is already there.

Speaker #4: Since last 10 years 15 years 10 to years. So we are breaking that code and we are hiring talents. We are setting our network.

Speaker #4: So, we were able to get the channel partners. We entered into Jharkhand also. We entered into North India—the deeper areas also. So, these all are the parts that we expected about the placements of the products.

Speaker #4: We introduced ourselves. We said we are in the people. So I think that is in line with what we are targeting. So it's a good response, basically.

Speaker #4: In UP it's a very good response for the our product.

Speaker #5: Okay, so good to hear that. Good luck.

Vidish Asher: Okay. Sir, good to hear all that, sir. Good luck.

[Analyst 6]: Okay. Sir, good to hear all that, sir. Good luck.

Speaker #4: Thank you.

Utkarsh Patel: Thank you.

Speaker #2: Thank you, Vidhish. Sir, we'll take the next question from Indresh Malik. Indresh, you can go ahead, please.

[Company Representative] (Captify Consulting): Thank you, Vidish. Sir, we will take the next question from Indresh Malik. Indresh, you can go ahead, please.

Vinay Pandit: Thank you, Vidish. Sir, we will take the next question from Indresh Malik. Indresh, you can go ahead, please.

Speaker #3: Yeah. Thank you for the opportunity. Yeah. Utkash bhai what was the trade receivables balance on 30th June? Hello?

Indresh Malik: Yeah. Thank you for the opportunity. Yeah, Utkarsh bhai, what was the trade receivables balance on 30 June?

[Analyst 7]: Yeah. Thank you for the opportunity. Yeah, Utkarsh bhai, what was the trade receivables balance on 30 June?

Utkarsh Patel: INR 150 crores.

Speaker #4: One 150 crores.

Speaker #3: 150 crores. And what's the number?

Indresh Malik: INR 150 crores.

[Analyst 7]: INR 150 crores.

Utkarsh Patel: Exact number I don't have right now, but I think it is INR 145 to 150 crores around.

Speaker #4: I don't have it right now, but I think it is around ₹145 to ₹150 crore.

Indresh Malik: Has it improved in the last 41 days in Q2?

Speaker #3: And has it improved in the last 41 days in Q2?

[Analyst 7]: Has it improved in the last 41 days in Q2?

Speaker #4: It is improved. See, that is the main focus area for us, and we are trying our best to set it back to normal, to the 120 days around.

Utkarsh Patel: It is improved. See, that is the main focus area for us, and we are trying our best to set back to the normal, to the 120 days around. So that is our first goal to achieve that. As I mentioned that we are as directly to the retailers, not by the distributors. So, right now it is going a little high for the newer states or newer developing area, what we are focusing on. This is the reason, but, we are setting up the good network and good training and inductions program where can we train our people to maintain these days and make not in the cost of the spoiling any relationship with the dealers. So I think within one or two quarter, we will be in a very good condition to maintain these ratios for the data side.

Speaker #4: So, that is our first goal—to achieve that. But as I mentioned, we are going directly to the retailers, not through the distributors.

Speaker #4: So, right now it is going a little high for the newer states or newer developing areas that we are focusing on. So this is the reason.

Speaker #4: But we are setting up the good network and good training and inductions program for the where can we train our people to maintain these days and make not in the cost of the the spoiling any relationship with the dealers.

Speaker #4: So I think within one or two quarter we'll be in a very good condition to maintain this ratios for the greater side.

Indresh Malik: Right. So most of the things have been asked. So I will ask you, in February you said you will get a Big Four auditor and a buyback, both were considered. So what are the decisions now?

[Analyst 7]: Right. So most of the things have been asked. So I will ask you, in February you said you will get a Big Four auditor and a buyback, both were considered. So what are the decisions now?

Speaker #3: Right. So most of the things have been asked, so I will ask you—in February, you said you will get a Big Four auditor, and a buyback; both were considered.

Speaker #3: So what are the decisions now?

Utkarsh Patel: No, I have not said that we will do that, but I have said that we will look into this matter. I think the Big Four is a little early for us to set that. As our auditor is, as I mentioned that they are the Ecovis company, the Germany, top five auditors. So they are the partner into India and Arcabra is also a very good auditor as you can see the profile also. Remaining the buyback, see I always mention about that right now what the competitions are going to phase and plus what we are into the expansion stage. So company will require to deploy this fund into the market expansion, and it is better condition right now. So, we have discussed internally for the buyback also, but the conclusion has not come yet right now.

Speaker #4: No, no, no. I have not said that we'll do that. But I have said that we'll look into this matter. And I think it's a little early for us to set that for the big four.

Speaker #4: And as I mentioned, our auditor is Ecovis, a company from Germany and one of the top five auditors. They are our partner in India.

Speaker #4: And also, our cabra is very good auditors, as you can see from the profile also. And regarding the buyback, CI always mentions about that. Right now, the competition we are going to face, plus we are in the expansion stage.

Speaker #4: So, the company will be required to deploy these funds into market expansion, and it is a better condition right now. We have discussed internally about the buyback also, but the conclusion has not come yet.

Speaker #4: So we are morely to invest into the expansion into the market and companies growth. Right now the conclusion.

Utkarsh Patel: So we are more to invest into the expansion into the market and company's growth. Right now the conclusion.

Indresh Malik: What about the NSE listing?

Speaker #3: And what about the NSC listing?

[Analyst 7]: What about the NSE listing?

Speaker #4: NSC listing is in process. Within this quarter, I think we'll have the NSC listing.

Utkarsh Patel: NSE listing is in process. Within this quarter, I think we will have the NSE listing.

Indresh Malik: Okay. Thank you, Utkarsh bhai. All the best.

[Analyst 7]: Okay. Thank you, Utkarsh bhai. All the best.

Speaker #3: Okay. Thank you, Utkarsh bhai. All the best.

Speaker #4: Thank you.

Utkarsh Patel: Thank you.

Speaker #2: Thank you, Indresh. We'll take the next question from Dishanth Shah. Dishanth, you can go ahead, please.

[Company Representative] (Captify Consulting): Thank you, Indresh. We will take the next question from Dishant Shah. Dishant, you can go ahead, please.

Vinay Pandit: Thank you, Indresh. We will take the next question from Dishant Shah. Dishant, you can go ahead, please.

Dishant Shah: Hello, Utkarsh bhai. I hope you are doing well, and hello everyone. Thank you for this opportunity. Utkarsh bhai, I have a very macro question, and I think I have never read about this in any of the materials that I could find on the company. My question is that, a lot of companies are, and even the government is promoting exports from India, right? I myself am an exporter to Latin America and Africa of industrial products, right? I have visited a few of these countries and see the hardware markets over there. I just wanted to ask that, do you have any plans in the next, let us say, 2 or 3 financial years to explore foreign markets, especially the emerging markets of Africa or South America? Thank you.

[Analyst 8]: Hello, Utkarsh bhai. I hope you are doing well, and hello everyone. Thank you for this opportunity. Utkarsh bhai, I have a very macro question, and I think I have never read about this in any of the materials that I could find on the company. My question is that, a lot of companies are, and even the government is promoting exports from India, right? I myself am an exporter to Latin America and Africa of industrial products, right? I have visited a few of these countries and see the hardware markets over there. I just wanted to ask that, do you have any plans in the next, let us say, 2 or 3 financial years to explore foreign markets, especially the emerging markets of Africa or South America? Thank you.

Speaker #3: Hello, Utkarsh bhai. I hope you are doing well, and hello everyone. Thank you for this opportunity. Utkarsh bhai, I have a very macro question, and I think I have never read about this in any of the materials that I could find on the company.

Speaker #3: My question is that, you know, a lot of companies are, and even the government is, you know, promoting exports from India.

Speaker #3: Right? And I myself I'm an exporter to Latin America and Africa of industrial products. Right? And I have visited a few of these countries and see the hardware markets over there.

Speaker #3: I just wanted to ask: Do you have any plans in the next, let's say, two or three financial years to explore foreign markets, especially the emerging markets of Africa or South America?

Speaker #3: Thank you.

Speaker #4: Yes, of course, it is a very good opportunity—what you are coming from—and I understand what you are saying. But right now, our target is to achieve at least ₹500 crore of top line, because, see, we are investing into the existing territories, existing domestic market.

Utkarsh Patel: Yes, of course, it is a very good opportunity what you are coming from, and I understand what you are saying that. But right now our target is to achieve at least INR 500 crore of top line, because see, we are investing into the existing territories, existing domestic market. We are building the team over here, we are recruiting new talents for going more deeper. So it is too far to think about to enter the different markets. So we are mostly focusing to that. Yes, we have added more into OEM segments. Now we are focusing onto the OEMs, the modular kitchens, modular furnitures market also. So right now we are generating the revenue of almost 6% from our total revenue for the OEMs market. But 10% to 12% is where our revenue will go. So we are building the team into the OEMs also.

Speaker #4: We are building the team over here. We are recruiting new talents for the going more deeper. So it is still it's too far to think about the to enter the the different markets.

Speaker #4: So we are more mostly focus into that. Yes we are we we have added more into OEM segments. Now we are focusing on to the OEMs the modular kitchens modular furnitures market also.

Speaker #4: So right now we are generating the revenue of almost 6% from the our total revenue for the OEMs market. But again मुझे लग रहा है कि 10 to 12% इसमें जाएगा हमारे revenue so we are building the team into the OEMs also we are going more for the Bangalore for the Telangana for the Delhi for the OEM market also.

Utkarsh Patel: We are going more for the Bangalore, for the Telangana, for the Delhi, for the OEM market also. So we want to remain into this market for at least next 3 years for that. After that maybe we have the team and everything is set over here, we can think about that, but not before 3 years.

Speaker #4: So, we want to remain in this market for at least the next three years for that. After that, maybe once we have the team and everything is set up over here, we can think about that.

Speaker #4: But not before three years.

Speaker #3: All right. So basically what I meant was that not as an OEM, but you know, launching our brand as Euro. Right?

Dishant Shah: All right. So basically what I meant was not as an OEM, but launching our brand as Euro 7000, right, in these foreign markets. That is where I was coming from actually.

[Analyst 8]: All right. So basically what I meant was not as an OEM, but launching our brand as Euro 7000, right, in these foreign markets. That is where I was coming from actually.

Speaker #3: In this foreign markets. That was that was a you know that is that is where I was coming from actually.

Speaker #4: Yeah, but as I mentioned, better that all the investments we are doing over here, as an example—54 dealers means we invested ₹4.5 crore.

Utkarsh Patel: Yeah. But as I mentioned, it is better that all investments we are doing over here. As an example, 54 dealers means we invested INR 4.5 crore. So it is better to leverage them and capitalize that investment right now from here, and to at least stable and maintain this 25% of EBITDA, and as our business is generating the cash. So anyhow, when the opportunity, we look for that. So after two, three years, maybe we can think about that. But I do not think so it is right now. It will be a too early step for us and I think the focus will be diversify also. So I do not want to do that for my team also. So it is better to focus into the domestic market. And see opportunities now ocean is that 8,000 crore of market is there.

Speaker #4: So it is better to leverage them and capitalize that investment for right now from here, and to at least stabilize and maintain this 25% of habit as our business is generating the cash.

Speaker #4: So anyhow, when the opportunity arises, we will look for that. So after two or three years, maybe we can think about that. But I don't think it is the right time right now; it would be too early a step for us, and I think the focus would also be diversified.

Speaker #4: So I don't want to do that for my team also. So it is better to focus on the domestic market. And the sea of opportunity now—the ocean—is that an ₹8,000 crore market is there.

Speaker #4: So, at least ₹1,000 crore is our target if we want to achieve 20% market share in the existing territory. We should.

Utkarsh Patel: So at least 1,000 crore of target we need to go for a 20% of market share from the existing territory we should right now.

Speaker #3: Right.

Speaker #4: Right now.

Dishant Shah: All right. Thank you so much.

[Analyst 8]: All right. Thank you so much.

Speaker #3: All right. All right. Thank you. Thank you so much.

Speaker #4: Thank you.

Utkarsh Patel: Thank you.

[Company Representative] (Captify Consulting): Sir, we will take the few questions from Q&A box. This question was asked by Arjun Shah. Sir, his first question is, what is the amount we hold currently approximately which is unpaid to carpenters, unpaid benefits?

Vinay Pandit: Sir, we will take the few questions from Q&A box. This question was asked by Arjun Shah. Sir, his first question is, what is the amount we hold currently approximately which is unpaid to carpenters, unpaid benefits?

Speaker #2: So, we'll take a few questions from the Q&A box. This question was asked by Arjun Shah. Sir, his first question is: What is the approximate amount we are currently holding, which is unpaid to carpenters?

Speaker #2: Unpaid benefits.

Utkarsh Patel: That is around INR 90 crores.

Speaker #4: That is around 90 crore.

Speaker #2: Okay. And the second question is, how much has our carpenter network grown over the last three years?

[Company Representative] (Captify Consulting): Okay. The second question is, how much has our carpenter network grown over the last three years?

Vinay Pandit: Okay. The second question is, how much has our carpenter network grown over the last three years?

Speaker #4: So, earlier, we had almost 170,000 carpenters registered. If I talk about the last three years, maybe it was below 150,000. But right now, we have 210,000 carpenters registered in our loyalty program.

Utkarsh Patel: It was earlier almost 170,000 carpenters we have registered. If I talk about the last three years, maybe it was 150,000 below, but right now it is 210,000 carpenters we have registered into our loyalty program. Within last quarter, I think we have increased 10,000 carpenters around.

Speaker #4: So, in the last quarter, I think we have increased by around 10,000 carpenters.

Speaker #2: Sir, we'll take the next question from Ritika Shet. Ritika, you can go ahead, please.

[Company Representative] (Captify Consulting): Sir, we will take the next question from Ritika Sheth. Ritika, you can go ahead please.

Vinay Pandit: Sir, we will take the next question from Ritika Sheth. Ritika, you can go ahead please.

Ritika Seth: Thank you, management, for giving me an opportunity once again. I just had a confusion about the INR 500 crore top line target vision. Is it by end of FY29 or FY30? Three years means from this financial year or from next financial year? Thank you.

[Analyst 1]: Thank you, management, for giving me an opportunity once again. I just had a confusion about the INR 500 crore top line target vision. Is it by end of FY29 or FY30? Three years means from this financial year or from next financial year? Thank you.

Speaker #4: Thank you, management, for giving me an opportunity once again. I just had a confusion about the ₹500 crore top-line target vision. Is it by the end of financial year '29 or financial year '30?

Speaker #4: Does "three years" mean from this financial year or from the next financial year? Thank you. For the 29, we can consider it for the ₹500 crore of revenue.

Utkarsh Patel: For the FY29 we can consider for the INR 500 crore revenue.

Speaker #4: So by the end of the financial year, ₹2,950 crore top line is the target, right? Yes, kind of. We are aiming for that and we are hoping for the best for that.

Ritika Seth: So by end of financial year 2029, INR 500 crore top line is the target, right?

[Analyst 1]: So by end of financial year 2029, INR 500 crore top line is the target, right?

Utkarsh Patel: Yes, kind of. We are aiming for that and we are hoping for the best for that. If we consider about 15% to 20% of volume growth, that is achievable, so we can consider that.

Speaker #4: And so if we consider about 15 to 20% of volume growth that is achievable. So we can consider that. Correct. So 500 crore top line with 23 to 25% EBITDA margins.

Ritika Seth: Correct. So INR 500 crore top line with 23% to 25% EBITDA margin. That's the target by FY29.

[Analyst 1]: Correct. So INR 500 crore top line with 23% to 25% EBITDA margin. That's the target by FY29.

Speaker #4: That's the target by FY 29. Yes. Perfect. Thank you so much Utkash bhai. All the very best. Thank you.

Utkarsh Patel: Yes.

Ritika Seth: Perfect. Thank you so much, Utkarsh bhai. All the very best.

[Analyst 1]: Perfect. Thank you so much, Utkarsh bhai. All the very best.

Utkarsh Patel: Thank you.

Speaker #2: Sir, we'll take the next question from Saurav Rathore. Saurav, you can go ahead, please.

[Company Representative] (Captify Consulting): Sir, we will take the next question from Saurabh Rathore. Saurabh, you can go ahead please.

Vinay Pandit: Sir, we will take the next question from Saurabh Rathore. Saurabh, you can go ahead please.

Saurabh Rathore: Hi. Thank you very much for the opportunity. Good afternoon, Utkarsh bhai. I just wanted to understand a bit about the nature of receivables for the business. I see that both in FY25 and FY26 revenue went up by 30 crores and so did the receivables by a similar number. Just wanted to understand what is the nature of receivables here? Yeah.

[Analyst 9]: Hi. Thank you very much for the opportunity. Good afternoon, Utkarsh bhai. I just wanted to understand a bit about the nature of receivables for the business. I see that both in FY25 and FY26 revenue went up by 30 crores and so did the receivables by a similar number. Just wanted to understand what is the nature of receivables here? Yeah.

Speaker #3: Hey, hi. Thank you very much for the opportunity. Good afternoon, Utkarsh bhai. I just wanted to understand a bit about the nature of receivables for the business.

Speaker #3: I see that both in FY25 and FY26, revenue went up by ₹30 crores, and so did the receivables by a similar amount.

Speaker #3: So, I just wanted to understand, you know, what is the nature of receivables here?

Speaker #4: Yeah. See see what what our moat is as I explained that we are direct to retailers. And from last 10 years we have taken the decisions about not going the typic traditional distribution module.

Utkarsh Patel: See what our moat is. As I explained that we are direct to retailers and from last 10 years we have taken the decisions about not going the traditional distribution module. We have created these 54 branches across these 15 states, and companies doing the stock transfer to these branches, and we are doing the billing to the direct retailers. So our datas are spread across these 13,000 retailers what we are doing the business with them. So this INR 150 crore are spread to these 13,000 retailers. As you can see that about the last 15, 20 years what business we have generated, we have not lost any money into having these bad debts. It is always below 0.5%.

Speaker #4: So we have created these 54 branches across these 15 states. And companies are doing the stock transfer to these branches, and we are doing the billing to the direct retailers.

Speaker #4: So our data is spread across these 13,000 retailers with whom we are doing business. So, this ₹150 crore is spread across these 13,000 retailers.

Speaker #4: So as as as you can see that about the last 15 20 years what business we have generated we have not lost any money into the having this backdaps.

Speaker #4: It is below always the below 0.5%. So we we are into the journey that we are more focusing aggressively to making the strong push of our product to the retailers making the strong relation with the newer markets new retailers.

Utkarsh Patel: We are into the journey that we are more focusing aggressively to making the strong push of our product to the retailers, making the strong relation with the newer markets, new retailers. That is what challenging we are facing right now. But yes, of course, when the products are very well accepted and when the demand can generate and we can maintain our good relations and good product demand into the market, then we were able to decrease these ratios. In a newer market, it goes a little high, but in an existing mature markets, we are able to maintain within 90 to 100 days. We are aiming to do this. First, we are aiming to at least maintain for the 120 to 130 days, which are right now above 150 days. We are aiming to do that.

Speaker #4: So that is what what challenging we are facing right now. But yes of course when the products are very well accepted and when the demand can generate and we can we can maintain our good relations and good product demand into the market then we were able to decrease this days ratios.

Speaker #4: In a newer market it goes a little high but in a existing mature markets we are able to maintain within 19 to 100 days.

Speaker #4: So, we are aiming to do this. First, we are aiming to at least maintain for 120 to 130 days, whereas right now it is about 150 days.

Speaker #4: So we are aiming to do do that. And I I hope within two quarters we'll able to maintain this.

Utkarsh Patel: I hope within two quarters we will able to maintain this.

Saurabh Rathore: Got it. What is typically the number of days of inventory that is held at a retailer store?

[Analyst 9]: Got it. What is typically the number of days of inventory that is held at a retailer store?

Speaker #3: Got it. Got it. What is typically the number of days of inventory that is held at a retailer store?

Utkarsh Patel: That depends upon the-

Speaker #4: That depends. Upon what market he was saying. But, yeah, that very much depends.

Saurabh Rathore: Broadly

[Analyst 9]: Broadly

Utkarsh Patel: market. That is very difficult.

Speaker #3: But broadly, what would that number look like?

Saurabh Rathore: Broadly, what would that number look like?

Utkarsh Patel: Broadly, what would that number look like?

Utkarsh Patel: It's vary to vary because there are very different kind of volume. Few counters are very, we can consider A-plus counters, so they are also. Not much inventory, because right now we have the availability of all states, all 100 territories, we have the depots available. It is easily maintained. Daily, twice we do the delivery, most of the territories.

Speaker #4: It's very very to vary because there are the very different kind of volume few counters are very we can consider A plus counters so they are and so also because not much inventory because right now we have the availability of the all all states all 100 territories we have the depots available.

Speaker #4: So it is easily maintained daily twice we do the delivery most of the territories. And yeah so it's not much much bulk packing they are not keeping much stock actually for the 50 60 kg.

Saurabh Rathore: Got it.

[Analyst 9]: Got it.

Utkarsh Patel: Yeah. So it is not much. Bulk packing, they are not keeping much stock, actually, for the 50, 60 kg. For the smaller SKUs, they are keeping the stocks, actually.

Speaker #4: For the smaller SKUs, they are actually keeping the stocks.

Saurabh Rathore: But then your credit terms with the retailers would be very lax, right? If they are able to turn the inventory around so quickly, and we are collecting after 120, 130 days aspirationally, then the credit terms are pretty good for the retailer, right? Is that a fair assessment?

[Analyst 9]: But then your credit terms with the retailers would be very lax, right? If they are able to turn the inventory around so quickly, and we are collecting after 120, 130 days aspirationally, then the credit terms are pretty good for the retailer, right? Is that a fair assessment?

Speaker #3: But then your credit terms with the retailers would be very lax, right, if they are able to turn the inventory around so quickly and we are collecting after 120–130 days aspirationally? Then the credit terms are pretty good for the retailer, right?

Speaker #4: Yes. Yeah, we can see that. We can consider, of course, that it is a little on the higher side, which is actually not needed.

Utkarsh Patel: Yeah, we can see that. We can consider, of course, that it is little higher side, which is actually not needed.

Utkarsh Patel: Yeah, we can see that. We can consider, of course, that it is little higher side, which is actually not needed. But see, as an example, this is a trade. In March month, dealers are always thinking like that their volume is going to hit into the loyalty program. The 31 March is there. Then also this year, the price rise and the uncertainty of the market, so they want to procure the materials. So these are the stage where they invest more, and they give the more orders, more volume. So that times, because of this more inventory that goes to the more days, actually, to the companies. But I think it is covering to within 15 or 20 days or one month after that, so it is manageable.

Speaker #4: But see as an example this is a trade in March month dealers are always thinking like that their their volume is going to hit into the the loyalty program the 31st March is there and also this these year the price rise and the uncertain of dity of the market.

Utkarsh Patel: But see, as an example, this is a trade. In March month, dealers are always thinking like that their volume is going to hit into the loyalty program. The 31 March is there. Then also this year, the price rise and the uncertainty of the market, so they want to procure the materials. So these are the stage where they invest more, and they give the more orders, more volume. So that times, because of this more inventory that goes to the more days, actually, to the companies. But I think it is covering to within 15 or 20 days or one month after that, so it is manageable.

Speaker #4: So they they want to procure the materials. So these are these are the stage where they they invest more and they give the more orders more volume.

Speaker #4: So that times because of this more inventory that goes to the more days actually to the companies. But I think it is it is cover into the within 15 or 20 days or one month after that.

Speaker #4: So it is manageable.

Saurabh Rathore: 15, 20, one month after the sales are done?

[Analyst 9]: 15, 20, one month after the sales are done?

Speaker #3: 15-20, one month after the sales are done.

Utkarsh Patel: Not sales are done, but if the condition, example, if the condition is 90 days into the regular conditions. Sometimes because of this situation, it goes to one month more, and the retailer ask at least 20 days or 30 days more rather than these 90 days.

Speaker #4: Not sales are done but if the condition example if the condition is 90 days into the regular conditions so sometimes because of this situation is goods to the one more one month more and the the retailer ask at least 20 days or 30 days more rather than this 90 days.

Speaker #4: But it is manageable then, after one month or at least more—one and a half months. Beyond that, that is not needed, actually.

Utkarsh Patel: But it is manageable then after one month or at least more, one and a half months. Beyond that is not needed, actually.

Saurabh Rathore: Got it. What is generally the retailer margin? I know it will depend on territory to territory, but still, broad number, broad sense of-

[Analyst 9]: Got it. What is generally the retailer margin? I know it will depend on territory to territory, but still, broad number, broad sense of-

Speaker #3: Got it. And what is generally the retailer margin? I know it will depend from territory to territory, but still, you know, a broad number or a broad sense of it.

Speaker #4: Yeah. So it is 7 to 13 percent we are passing.

Utkarsh Patel: Yeah. So it is 7% to 13% we are passing.

Speaker #3: 7 to 13% margins. Got it. Utkash bhai my next question is about you know how do you how do you identify the territories of states where you want to expand right?

Saurabh Rathore: 7% to 13% margins.

[Analyst 9]: 7% to 13% margins.

Utkarsh Patel: Yes.

Saurabh Rathore: Got it. Patkar, my next question is about how you identify the territories or states where you want to expand, right? You are in expansion phase, so what all things or what all parameters went into deciding where to expand geographically?

Utkarsh Patel: Got it. Patkar, my next question is about how you identify the territories or states where you want to expand, right? You are in expansion phase, so what all things or what all parameters went into deciding where to expand geographically?

Speaker #3: You are in an expansion phase so what all what all things are you know what all parameters went into deciding way to expand? Geographically.

Speaker #4: So, it's of course the number of the population, where more infrastructure and real estate are growing. And now we see, as an India story, tier two and tier three cities are the more focused territories.

Utkarsh Patel: Of course, the number of the populations where the more infrastructure real estate is growing. Now, as an India story, tier 2, tier 3s are the more focused territories.

[Analyst 9]: Of course, the number of the populations where the more infrastructure real estate is growing. Now, as an India story, tier 2, tier 3s are the more focused territories.

Utkarsh Patel: So if we talk about Bihar, if we talk about Jharkhand, Uttar Pradesh, these are the states where the growth is coming from. I believe all the territories, if we talk about Mumbai, if we talk about Ahmedabad, if we talk about Rajkot, Surat, these all most developments are going into these bigger cities. So except the tourist place, if we talk about Jammu, Kashmir or Goa, I think, or Assam side, I think remaining all states are growing. So, what 15 states we have entered that all are the well growing states, actually.

Speaker #4: So if we talk about the Bihar if we talk about the Jharkhand the UP there are these are the states where the growth is coming from.

Speaker #4: I I think I believe all the territories if we talk about the Mumbai if we talk about the Ahmedabad if we talk about the Rajkot Surat these all most developments are going into these bigger cities.

Speaker #4: So except the tourist places—if we talk about Jammu & Kashmir, or Goa, or Assam side—I think the remaining all states are growing.

Speaker #4: So what 15 states we are, we have entered—all are the going well, growing states actually.

Saurabh Rathore: Got it. Any commentary on competition, Jeevan Jyoti, Baonsaite, et cetera, like how are they doing versus you? How do you look at competition in general when you are thinking about a new geography? So some flavor on that would be very useful.

[Analyst 9]: Got it. Any commentary on competition, Jeevan Jyoti, Baonsaite, et cetera, like how are they doing versus you? How do you look at competition in general when you are thinking about a new geography? So some flavor on that would be very useful.

Speaker #3: Got it. Got it. Got it. And any commentary on competition Jeevan Jod Bonsai etc like how are they doing versus you like how do you look at competition in general when you're thinking about a new geography?

Speaker #3: Right? So some flavor on that would be very useful.

Speaker #4: I believe it is going in a very nice way. I believe there are not any wrong decisions for any companies, I believe. Because, as we say, the market leaders have taken the step to increase the price also, and they have maintained their EBITDA also.

Utkarsh Patel: I believe it is going very nice way. I believe it is not any wrong decisions for any companies, I believe. Because as we say that the market leaders have taken the step to increase the price also, and they have maintained their EBITDA also. So I think there is not much kind of any war or anything going to happen. I think what the distributions, what the efforts, whoever do for the long-term policy strategies, they will make their market share. It is a very positive sign for us also last three, four years, maybe the competition going aggressive, but though we are able to maintain this growth, so that is a very positive sign for us.

Speaker #4: So I think there is not much much kind of any war or anything going happen. I think what what the distributions what the efforts who whoever do the for the long term policies strategies they will make their market share.

Speaker #4: And it's a very positive sign for us also. Last three four years maybe the competition going aggressive. Though we are able to maintain this growth so that is a very positive sign for us.

Saurabh Rathore: Yes. That is. No, congratulations on that, sir. I will go back to the queue. I will leave it here. Thank you very much. Thank you.

[Analyst 9]: Yes. That is. No, congratulations on that, sir. I will go back to the queue. I will leave it here. Thank you very much. Thank you.

Speaker #3: Yes. That is that is no congratulations on that sir. I will go back to the QI I'll leave with you. Thank you very much Utkash bhai.

Speaker #3: Thank you very much.

Utkarsh Patel: Thank you.

Speaker #4: Thank you. Thank you.

Speaker #2: Thank you sir. We'll take the next question from Sakeet Sarovi. Sakeet you can go ahead head please.

[Company Representative] (Captify Consulting): Thank you, sir. We will take the next question from Saket sir now. Saket, you can go ahead, please.

Vinay Pandit: Thank you, sir. We will take the next question from Saket sir now. Saket, you can go ahead, please.

Speaker #3: So my question was in continuation like like Sameet sir was talking about the the the upfront investments we have done like in the brand promotion like and this dealer meets and all and we see the benefits coming in future.

Saket Saraogi: Sir, my question was in continuation, like Samit sir was talking about the upfront investments we have done, like in the brand promotion, like investor dealer meets and all, and we see the benefits coming in future. If we see, sir, for last six, seven years of our company, from COVID till 2023, there was exponential growth in our sales. After that, for three years, virtually there was no growth in spite of our company pushing up for these dealer meets and everything. Now let us suppose again, we are pushing aggressively for dealer meets and all. What is the difference that we see today and in last three years that in spite of all the efforts, there was no sales growth virtually, hardly any sales growth.

[Analyst 5]: Sir, my question was in continuation, like Samit sir was talking about the upfront investments we have done, like in the brand promotion, like investor dealer meets and all, and we see the benefits coming in future. If we see, sir, for last six, seven years of our company, from COVID till 2023, there was exponential growth in our sales. After that, for three years, virtually there was no growth in spite of our company pushing up for these dealer meets and everything. Now let us suppose again, we are pushing aggressively for dealer meets and all. What is the difference that we see today and in last three years that in spite of all the efforts, there was no sales growth virtually, hardly any sales growth.

Speaker #3: So, for the last, if we see, sir, for the last six or seven years of our company, from COVID till 2023, there was exponential growth in our sales.

Speaker #3: And after that, for three years, virtually there was no growth in spite of our company pushing up for these dealer meets and everything. So now, again, we are pushing aggressively for dealer meets and all.

Speaker #3: So, what is the difference that we see today and in the last three years that, in spite of all the efforts, there was virtually no sales growth—hardly any sales growth.

Speaker #3: And now again, we are putting so much effort into the dealer meet and all, in anticipation that it will bear fruit in the future. So, what is the reason that for the last three years there was no growth, and now again we see that growth could come going forward?

Saket Saraogi: Now again, we are putting so much effort for dealer meet and all in anticipation that it will bear fruits in future. What is the reason for like for last three years there was no growth and now again we see that the growth could come going forward?

[Analyst 5]: Now again, we are putting so much effort for dealer meet and all in anticipation that it will bear fruits in future. What is the reason for like for last three years there was no growth and now again we see that the growth could come going forward?

Utkarsh Patel: See, actually, if you see about that, only one year was that where we consolidate, the 2023, 2024, where we were same revenue, INR 258 to INR 260 crore. But after that we have taken 285 and then we have 314. And right now if we consider the Q1 phase, it is about INR 360 crore around. So we have taken almost 9% to 10% of growth. But yes, you are very right that about what we were expected about the 15%, 20% growth in 2023, 2024, we were not able to achieve that much. But I think that was the consolidation we needed at that time. And what changes or what improvement we have done into the organization, that is very drastically changed. See, in a team-wise, in a channel partners, the corrections, the improvements, the market expansions, the branding, the activities. We onboarded Pankaj Tripathi also.

Speaker #4: See, actually, if you look at that, there was only one year where we consolidated—the year 2023–24—where we had the same revenue, ₹258–260 crore.

Speaker #4: But after that, we have taken 285, and then we have three at 314, and right now, if we consider the Q1 phase, it is about 360 crore.

Speaker #4: Around. So we have taken almost 9 to 10% of growth but yes you are very right that about what we were expected about the 15 20% growth in 23 24 we were not able to achieve that much.

Speaker #4: But I I think that was the consolidation we needed at that time and what changes or what we improvement we have done into into the organization that is a very drastically change.

Speaker #4: See if in a in a team wise in a in a channel partners the corrections the improvements the market expansions the the branding the activities we onboarded the Mr. Pankaj Tripathi also we are the the first this is brand who have taken the this type of brand ambassador also so these all are activities are ongoing and Sameet bhai you can guide more for this question actually.

Utkarsh Patel: We are the first adhesives brand who have taken this type of brand ambassador also. So these all our activities are ongoing and Samit, you can guide more for this question actually.

Samit Shah: Sure. Saket, as I mentioned earlier also that we are into completely 2.0 that is transformation journey basically. What happened that we studied the last four or five years, as you rightly said, that there was some marginal growth on certain years and as MD sir also rightly mentioned, as we consolidated for few years and all. So now here on the journey is to the next level and hence as I told earlier also during this call only that we are getting future ready. For that we are laying strong foundations across all departments, be it tech, be it HR, be it SOPs, policies, admin, marketing, sales, geographical expansion, plant capacity expansion, storage capacity expansion. So everywhere we are getting future ready and investing for the coming phase of the company. So you might see that Q4 onwards, competition is always there.

Speaker #3: Sure sure sure. So Sakeet ji as I mentioned earlier also that we are into completely 2.0 that is transformation journey basically. So we what happened that we studied last four five years as you rightly said that there was some marginal growth on on certain years and we as MD sir also rightly mentioned that we consolidated for few years and all.

Speaker #3: So now, here on the journey to the next level, and hence, as I told earlier also on this call only, that we are getting future ready.

Speaker #3: And for that we are laying strong foundations across all departments be it tech be it HR be it SOPs policies admin marketing sales geographical expansion you know plant capacity expansion storage capacity expansion.

Speaker #3: So everywhere we are like you know we are getting future ready and investing for the coming phase of the company. So you might see that quarter four onwards there is a despite you know there is I mean competition is always there but despite any odds or anything also we have grown we have also growing geographically we are we are adding new talent to our our our portfolio and you know going for a complete transformation journey from here on.

Samit Shah: But despite any odds or anything also, we have grown. We are also growing geographically. We are adding new talent to our portfolio and going for a complete transformation journey from here on. So that is what we have been driving so far.

Speaker #3: So that is what we have been driving so far.

Speaker #4: Last year, quarter two and quarter four were also about double-digit growth. Quarter two was 16%, quarter four was 20%.

Utkarsh Patel: Last year, Q2 and Q4 was also about the double digits growth.

Samit Shah: Yeah.

Utkarsh Patel: Q2 was 16%, Q4 was 20%.

Samit Shah: Above 15% to 20% is what we have been driving and I think that is what we are hoping that with the kind of transformation journey we have been working on. We are confident that we can achieve the desired numbers in coming few quarters and couple of years is what MD sir also mentioned. We are right now laying down a strong foundation for a robust growth in coming quarters and years basically.

Speaker #3: So, between 15% to 20% is what we have been driving, and I think that is what we are hoping for with the kind of transformation journey we have been working on.

Speaker #3: So, we are confident that we can achieve the desired numbers in the coming few quarters and couple of years, as MD sir also mentioned.

Speaker #3: So, we are right now laying down a strong foundation for robust growth in the coming quarters and years, basically.

Speaker #2: Sir, if you don't mind me asking, suppose from March 2020 to 2023 we had almost tripled our sales—more than that, actually, about 3.5 times the sales, right? And after that, in the last three years, it's only a 20% increase, from 260 to 315.

Saket Saraogi: Sir, if you do not mind asking me, suppose from March 2020 to 2023, we had almost tripled our sales. More than that, 3.5 times the sales. After that, in last three years it is only 20% increase from INR 260 to INR 315. What had happened? What had gone wrong that this kind of growth we had earlier, this 50%, 60% growth and after that only 5%, 6% aggregate growth. What went wrong all of a sudden? I wanted to know if you could give some light on that.

[Analyst 5]: Sir, if you do not mind asking me, suppose from March 2020 to 2023, we had almost tripled our sales. More than that, 3.5 times the sales. After that, in last three years it is only 20% increase from INR 260 to INR 315. What had happened? What had gone wrong that this kind of growth we had earlier, this 50%, 60% growth and after that only 5%, 6% aggregate growth. What went wrong all of a sudden? I wanted to know if you could give some light on that.

Speaker #2: So like what what what had happened what had gone wrong that this kind of growth we had earlier this 50 60% growth and and after that only five six percent growth what went wrong all of a sudden like I wanted to know if you could give some light on that.

Speaker #4: I think I think nothing was got wrong actually but as I mentioned that the consolidation was needed because see size was also different. In 2020 we were doing 100 crores of revenue then we take a jump of to 180 1 crore rupees.

Utkarsh Patel: I think nothing was gone wrong. As I mentioned that the consolidation was needed because the size was also different. In 2020 we were doing INR 100 crores of revenue. Then we take a jump of to INR 181 crore. That was a 80% growth. That was a very exceptional growth, what we have done. That was the reason that we expanded into the newer territories and we went aggressive. What 15 years we have invested, we leveraged and we capitalized them. It is a different number right now. At that time, when we do INR 100 crores of revenue, the outstanding, the receivable were around INR 30, 40 crore. Right now, the receivables are of INR 150 crore. The revenue went to the INR 314 crore. It is a different game now, and the competitions are there.

Speaker #4: So, that was 80% growth. That was a very exceptional growth that we have achieved, and that was the reason we expanded into newer territories and went aggressive. Over the 15 years we have invested, we leveraged them, we capitalized them.

Speaker #4: That so it is a different number right now. At that time when we when we do 100 crores of revenue the outstanding the receivable was were around 30 40 crore rupees.

Speaker #4: Right now the receivables are of 150 crore rupees. The revenue went to the 314 crore rupees. So it's a different game now and the competitions are there the the different companies looking for to enter this categories as you aware about that.

Utkarsh Patel: The different companies looking for to enter these categories, as you aware about that. Because of these parameters also we have come out from these, all the situations. Last year, as I mentioned, if we see about the last four quarters, two quarters were there, where we grew up by above 15%.

Speaker #4: So though because of these parameters also we have come out from this all the situations and last as I mentioned that if we if we see about the last four quarters so two quarters were there where we grew up by above 15% quarter four was 20%.

Saket Saraogi: Yes.

[Analyst 5]: Yes.

Utkarsh Patel: Q4 was 20%. That is a sign we are doing something into the right directions. We are able to maintain our company debt-free. We are sitting on the INR 160 crore of cash for the future expansions, for future growth. The brownfield is done. The asset-light model, INR 7 crore we have invested into the brownfield, and now the company is ready for the generating INR 650 crore of revenue. These are the very positive sign, but we need to understand this model is the distribution and network model.

Speaker #4: So that is a sign we are doing something into the right directions we we are able to maintain our company debt free we are sitting on the 160 crore of cash for the future expansions for future growth the brownfield is done the the asset light model 7 crore rupees we have invested into the brownfield and now the company is ready for the generating 650 crore rupees of revenue.

Speaker #4: So, these are very positive signs, but we need to understand that this model is the distribution and network model, and it's an execution-heavy model, actually.

Saket Saraogi: It is an execution-heavy model, actually.

[Analyst 5]: It is an execution-heavy model, actually.

Speaker #4: Execution heavy model, and see that the leader has invested 65 years into their journey. So it's a very long journey that they have invested, and we have still only invested 20 years.

Utkarsh Patel: Execution-heavy model. The leader has invested 65 years into their journey. It is a very long journey, what they have invested, and we are still 20 years, what we have invested. We are expecting next 10 years, we are expecting very much growth, what foundations we have built and what investment we have done into our journey. We hope so that you understand about this distribution network.

Speaker #4: So we are expecting next next 10 years we are expecting very much growth what foundations we have built and what investment we have done.

Speaker #4: Into our journey. So we hope so that you understand about this distribution network.

Speaker #2: Thank you. Thank you so much.

Saket Saraogi: Thank you. Thank you so much.

[Analyst 5]: Thank you. Thank you so much.

Speaker #4: Thank you.

Utkarsh Patel: Thank you.

Speaker #2: Sir we'll take the next question from Arjun. Arjun you can go ahead.

[Company Representative] (Captify Consulting): Sir, we will take the next question from Arjun. Arjun, you can go ahead.

Vinay Pandit: Sir, we will take the next question from Arjun. Arjun, you can go ahead.

Speaker #3: Yeah, hi. Firstly, I really want to say that it's very commendable what your team has done with the benefit plan that you have, and just holding that interest-free money on our books.

Arjun Shah: Yeah. Hi. Firstly, I really want to say that it is very commendable what your team has done with the benefit plan that you have and just holding that interest-free money on our books. I think it is not something that a lot of businesses can do. So very, very commendable. Secondly, my question is regarding working capital. I think one of the earlier participants also asked. That is, I feel like one of the key concerns where, in this quarter, I think the inventories also went up, which you said was the reason you wanted to stockpile. But the receivables, how long do you think before they come down to a more comfortable level? That is what I wanted to ask.

[Analyst 10]: Yeah. Hi. Firstly, I really want to say that it is very commendable what your team has done with the benefit plan that you have and just holding that interest-free money on our books. I think it is not something that a lot of businesses can do. So very, very commendable. Secondly, my question is regarding working capital. I think one of the earlier participants also asked. That is, I feel like one of the key concerns where, in this quarter, I think the inventories also went up, which you said was the reason you wanted to stockpile. But the receivables, how long do you think before they come down to a more comfortable level? That is what I wanted to ask.

Speaker #3: I think it's not something that a lot of businesses can do. So very very commendable. But secondly my question is regarding working capital. I think one of the earlier participants also asked so that is that is I feel like one of the key concerns where in this quarter I think the inventory is also went up which you said was the reason you wanted to stockpile.

Speaker #3: But the receivables how long do you think before they come down to a more comfortable level? That is what I wanted to ask.

Utkarsh Patel: Yeah. We are aiming for the next two quarters, and we have more focused now for these investments. We are also looking for the channel financing things also. See, you are very right, that should be concern, and we are also concerned about that. But we have breathed this business from so many years, 20 years already we have invested in. As we see that bad debt is not going above 1%, above 0.5%, actually. So we have maintained that. We have maintained and generated this PAT also last three, four years. So that is doable. Not giving any excuse, it is not correct. Of course, we should go down about that, and we are trying our best to. But we don't want to lose any trust of our retailers or of our new market.

Speaker #4: Yeah. So we are aiming for the next two quarters and we have more focused now for this investments. How can we we are also looking for the channel financing things also and see you are you are very right that that should be concerned and and we are also concerned about that.

Speaker #4: But we have breathed this business from so many years 20 years already we have invested and as we see that that bad debts not going above 1% above 0.5% actually so we have maintained that we have maintained and generated this pat also last three four years so that is doable not doing not giving any excuse it is not correct of course we should go down about that and we are trying our best to but we don't want to lose any trust of our retailers or of our new markets.

Speaker #4: So we are going little slow and monitoring the things and maintaining the relationship and we are explaining and we are giving the more training to the our sales executives to maintain the relationship also without spoiling the relation to maintain the data data release also so we are into that journey but it is not I think correct step will be there if we go for the sudden sudden and immediate basis for this.

Utkarsh Patel: We are going little slow and monitoring the things and maintaining the relationship, and we are explaining, and we are giving the more training to our sales executives to maintain the relationship also without spoiling the relation to maintain the debtor days also. So we are into that journey, but it is not, I think, correct step will be there if we go for the sudden and immediate basis for this. So I think we require two to three quarters to maintain and to get down this debtor cycles. This is how we are doing.

Speaker #4: So I think we require two to three quarters to maintain and to get down this data cycles. So this is how we are doing.

Speaker #3: But just hypothetically by the end of let's say this year or next year do you see the data days coming down to something like 120 or would it still be higher or would it be lower possibly?

Arjun Shah: But just hypothetically, by the end of, let us say, this year or next year, do you see the debtor days coming down to something like 120, or would it still be higher, or could it be lower, possibly?

[Analyst 10]: But just hypothetically, by the end of, let us say, this year or next year, do you see the debtor days coming down to something like 120, or would it still be higher, or could it be lower, possibly?

Speaker #4: See, we we are we are aiming for at least 120 days. That should be the cycle as we are do the direct retailers not above that.

Utkarsh Patel: See, we are aiming for at least 120 days. That should be the cycle as we are to the direct retailers, not above that. As I mentioned that for the newer markets, see, we have started for the Jharkhand, North India, we have started for the Patiala, Chandigarh, Haryana, Hisar. In UP we are focusing now eight cities. We are penetrating more than 1,500 counters placements are done into the UP. See, these are the placements and new sales generating to the dealer. It is not the right time that we can push about the immediate payments or very rigid into the payment terms.

Speaker #4: But as as I mentioned that for the newer markets see we have started for the Jharkhand, North India we have started for the Patiala, Chandigarh, Haryana, Isar, in a UP we are focusing now eight cities we are penetrating more than 1500 counters placement are done into the UP so see these are the placements and new sales generating to the dealers so it is not the right time that we can push about the immediate payments or very rigid into the payment terms.

Speaker #4: So we are going little slower and we are maintaining the good long term long term relationship with them. To penetrate more but yes we can aim for the next two three quarters to maintain this 120 days of data cycles.

Utkarsh Patel: We are going a little slower, and we are maintaining the good long-term relationship with them to penetrate more. But yes, we can aim for the next two, three quarters to maintain this 120 days of debtor cycles.

Speaker #3: Okay. And so just just one last question. Do you have any example of any state where data days when we initially entered data days were around 150 and they have we have successfully brought them down over time?

Arjun Shah: Okay. Just one last question. Do you have any example of any state where, debtor days when we initially entered, debtor days were around 150, and we have successfully brought them down over time?

[Analyst 10]: Okay. Just one last question. Do you have any example of any state where, debtor days when we initially entered, debtor days were around 150, and we have successfully brought them down over time?

Speaker #4: Actually all the states. All the states because if we talk about the Gujarat if we talk about the Rajasthan MP Maharashtra see earlier three two three years is always painful for any company regarding the EBITDA regarding the data cycles because see you you are new for the UP example if we are going the UP nobody knows about the euros though we are very very established brand into the Gujarat but we have invested more than 18 years into the Gujarat to set this market so you know UP we need to set this the team the the network the distribution network the the relationship with the dealer so these are taking the time and the beauty of this business is what investment is done that is for the longer years so that is the the moat what what can give us the motivation to do this investments actually it's a B2C B2D model so it's a patience is the I think key factors to for the growth journey for the longer years.

Utkarsh Patel: Actually, all the states.

Arjun Shah: Okay.

[Analyst 10]: Okay.

Utkarsh Patel: All the states. Because if we talk about Gujarat, if we talk about Rajasthan, MP, Maharashtra. See, earlier 2, 3 years is always painful for any company,

Utkarsh Patel: regarding EBITDA, regarding the data cycles. Because see, you are new for UP. Example, if we are going UP, nobody knows about Euro 7000, though we are a very established brand into Gujarat, but we have invested more than 18 years into Gujarat to set this market.

Utkarsh Patel: So, UP, we need to set the team, the network, the distribution network, the relationship with the dealer. So these are taking the times, and the beauty of this business is what investment is done, that is for the longer years. So that is the moat, what can give us the motivation to do these investments, actually. It's a B2C, B2B model. So patience is the, I think, key factors for the growth journey for the longer years.

Arjun Shah: Understood. All right. Thank you, and all the best.

[Analyst 10]: Understood. All right. Thank you, and all the best.

Speaker #3: Understood. All right. Thank you, and all the best.

Speaker #4: Thank you.

Utkarsh Patel: Thank you.

Speaker #2: Thank you. Sir since there are no further questions sir would you like to give any closing comments?

[Company Representative] (Captify Consulting): Thank you. Sir, since there are no further questions. Sir, would you like to give any closing comments?

Vinay Pandit: Thank you. Sir, since there are no further questions. Sir, would you like to give any closing comments?

Speaker #4: So yes thank you very much for trusting us and we are trying our hard and we are optimistic about the India growth story India market what we have invested into the newer markets and existing markets so we are hoping best that we'll able to generate the growth story for the coming years so we needed your support your guidance your feedback so thank you very much for trusting us and yeah thank you very much.

Utkarsh Patel: Yes, thank you very much for trusting us, and we are trying our hard and we are optimistic about the India growth story, India market. What we have invested into the newer markets and existing markets, so we are hoping best that we are able to generate the growth story for the coming years. So we needed your support, your guidance, your feedback. So thank you very much for trusting us, and yeah, thank you very much.

[Company Representative] (Captify Consulting): Yeah. Thank you. Thank you to the management team for your valuable time, and thank you to all the participants for joining on the call. This brings us to the end of today's conference call. You all may disconnect now. Thank you.

Vinay Pandit: Yeah. Thank you. Thank you to the management team for your valuable time, and thank you to all the participants for joining on the call. This brings us to the end of today's conference call. You all may disconnect now. Thank you.

Speaker #2: Thank you. Thank you to the management team for your valuable time, and thank you to all the participants for joining the call. This brings us to the end of today's conference call.

Speaker #2: You all may disconnect now. Thank you.

Speaker #3: Thank you.

Arjun Shah: Thank you.

Utkarsh Patel: Thank you.

[Analyst]: Goodbye

Browse all earnings call transcripts

Q1 2027 Jyoti Resins and Adhesives Ltd Post Earnings Call

Request TrialDemo

Euro 7000

Earnings