Half Year 2026 Al Anwar Ceramic Tiles Co SAOG Earnings Call

[Company Representative] (Al Anwar Ceramic Tiles): It's exactly 4:00 now, Oman time. I see that we have a lot of people attending this discussion session. Good afternoon to everyone, and hope I am audible. If somebody can just raise your hand or say whether I'm audible. Okay, fine. I'm audible, so good afternoon to everyone present for the discussion session, and welcome to the second discussion session of the year 2026, where we'll be discussing the H1 performance of the company for the year 2026.

Aronashlm Suresh: It's exactly 4:00 now, Oman time. I see that we have a lot of people attending this discussion session. Good afternoon to everyone, and hope I am audible. If somebody can just raise your hand or say whether I'm audible. Okay, fine. I'm audible, so good afternoon to everyone present for the discussion session, and welcome to the second discussion session of the year 2026, where we'll be discussing the H1 performance of the company for the year 2026.

Speaker #1: It's exactly 4 o'clock now, Oman time, and I see that we have a lot of people attending this discussion session. Good afternoon to everyone, and I hope I'm audible.

Speaker #1: If somebody can just raise your hand or say whether I am audible. Okay, fine. So, I'm audible. Good afternoon to everyone.

Speaker #1: Present in the— for the discussion session, and welcome to the second discussion session of the year 2026, where we'll be discussing the first half performance of the company for the year 2026.

Speaker #1: So, as you have all— there'll be no presentation as such as usually we discuss the— during these discussion sessions, we're generally— there'll be no presentations as such.

[Company Representative] (Al Anwar Ceramic Tiles): There'll be no presentation as such, as usually we discuss during these discussion sessions, where generally there will be no presentations as such. Having said that, I will just give a brief about what has been the performance of the H1. For the H1, the revenue has been flat over last year. This is in spite of the, what do you call, the challenging environment we had, especially from March onwards in the region.

Aronashlm Suresh: There'll be no presentation as such, as usually we discuss during these discussion sessions, where generally there will be no presentations as such. Having said that, I will just give a brief about what has been the performance of the H1. For the H1, the revenue has been flat over last year. This is in spite of the, what do you call, the challenging environment we had, especially from March onwards in the region.

Speaker #1: And having said that, we will— I'll just give a brief about what has been the performance of the first half. For the first half, the revenue has been flat, over last year.

Speaker #1: This is in spite of the— what do you call— the challenging environment we had in the— especially from March onwards in the region. And the— however, we have delivered a net profit in excess of 650,000 real money.

[Company Representative] (Al Anwar Ceramic Tiles): However, we have delivered a net profit in excess of OMR 650,000. We are at about OMR 666,000 to be precise, which is representing a growth of about 25% over last year same period.

Aronashlm Suresh: However, we have delivered a net profit in excess of OMR 650,000. We are at about OMR 666,000 to be precise, which is representing a growth of about 25% over last year same period.

Speaker #1: We are at about 666,000, to be precise, which is about— representing a growth of about 25% over last year, same period. And the highlight of— one more highlight will be that we have— this 666 also represents higher than the entire year profits which we did in 2025, which means if we are able to sustain this profitability, we will be more than doubling our profits for this year as compared to last year.

[Company Representative] (Al Anwar Ceramic Tiles): One more highlight will be that the OMR 666,000 also represents higher than the entire year profits which we did in 2025, which means if we are able to sustain this profitability, we will be more than doubling our profits for this year as compared to last year. Coming to the brief, what do you call, parameters based on which we were able to deliver this is, one is it was aided by the anti-dumping duty, which was continued in the local market in Oman.

Aronashlm Suresh: One more highlight will be that the OMR 666,000 also represents higher than the entire year profits which we did in 2025, which means if we are able to sustain this profitability, we will be more than doubling our profits for this year as compared to last year. Coming to the brief, what do you call, parameters based on which we were able to deliver this is, one is it was aided by the anti-dumping duty, which was continued in the local market in Oman.

Speaker #1: And coming to the— to the brief— what do you call— parameters or based on which we were able to deliver this, is one is it was aided by the anti-dumping duty which was continued in the local market in Oman.

Speaker #1: So that helped us considerably to consolidate further on the market in Oman. And also, the volumes were— to some extent— in fact, impacted in the other export market because of the going on war here.

[Company Representative] (Al Anwar Ceramic Tiles): That helped us considerably to consolidate further on the market in Oman. Also the volumes were to some extent, in fact, impacted in the other export market because of the ongoing war here. Otherwise, the performance, the bottom line could have been even more better if we had been able to export a few more, or even if we had exported the same levels at what we did last year.

Aronashlm Suresh: That helped us considerably to consolidate further on the market in Oman. Also the volumes were to some extent, in fact, impacted in the other export market because of the ongoing war here. Otherwise, the performance, the bottom line could have been even more better if we had been able to export a few more, or even if we had exported the same levels at what we did last year.

Speaker #1: Otherwise, the performance— the bottom line— could have been even more better if we had been able to export a few more or even if we had exported the same levels at what we did last year.

Speaker #1: So that is one impact. And Oman market is doing extremely well. We have grown decently well. Whereas the export market, especially the Saudi, the Qatar, Bahrain, and Kuwait, and all, has been impacted.

[Company Representative] (Al Anwar Ceramic Tiles): That is one impact. Oman market is doing extremely well. We have grown decently well. Whereas the export market, especially the Saudi, the Qatar, Bahrain, and Kuwait and all has been impacted. That is where we stand in terms of the market-wise performance.

Aronashlm Suresh: That is one impact. Oman market is doing extremely well. We have grown decently well. Whereas the export market, especially the Saudi, the Qatar, Bahrain, and Kuwait and all has been impacted. That is where we stand in terms of the market-wise performance.

Speaker #1: So that is where we stand in terms of the— the market-wise performance. Whereas there has been escalation of our input cost pressures are there, which we are managing by, you know, cost optimizations and then process controls and also by seeing whether we can improve on our realization, the selling prices.

[Company Representative] (Al Anwar Ceramic Tiles): Whereas there has been escalation of our input cost pressures are there, which we are managing by cost optimizations and then process controls, and also by seeing whether we can improve on our realization, the selling prices, which will be seen in the coming quarters. Which we have already implemented the selling price increases, which will be visible in the coming quarters.

Aronashlm Suresh: Whereas there has been escalation of our input cost pressures are there, which we are managing by cost optimizations and then process controls, and also by seeing whether we can improve on our realization, the selling prices, which will be seen in the coming quarters. Which we have already implemented the selling price increases, which will be visible in the coming quarters.

Speaker #1: These will be seen in the coming quarters, which we have already implemented. The selling price increases, which will be visible in the coming quarters.

Speaker #1: With this, I'm sure all of you have done your detailed number crunching and number analysis of the numbers which we had already disclosed. So I leave the floor open for any questions, and then we will be able to answer you to the best of our ability.

[Company Representative] (Al Anwar Ceramic Tiles): With this, I'm sure all of you have done your detailed number crunching and number analysis of the numbers which we had already disclosed. I leave the floor open for any questions, and then we will be able to answer you to the best of our ability and whatever is relevant. The floor is open for any queries now, please. Yes, Mr. Mohammed Al Ali, I think you have a query. Please, you have to unmute yourself, please.

Aronashlm Suresh: With this, I'm sure all of you have done your detailed number crunching and number analysis of the numbers which we had already disclosed. I leave the floor open for any questions, and then we will be able to answer you to the best of our ability and whatever is relevant. The floor is open for any queries now, please. Yes, Mr. Mohammed Al Ali, I think you have a query. Please, you have to unmute yourself, please.

Speaker #1: And whatever is relevant. The floor is open for any queries now, please. Yes, Mr. Muhammad, I think you have a query. Yes, you have to unmute yourself, please.

Speaker #2: Good afternoon. Am I audible?

Mohammed Al Ali: Good afternoon. Am I audible?

[Analyst 1]: Good afternoon. Am I audible?

Speaker #1: Yeah, yeah, yeah. Sure, sure. Please go on, Mr. Muhammad. Yeah.

[Company Representative] (Al Anwar Ceramic Tiles): Yeah. Sure. Please go on, Mr. Mohammed.

Aronashlm Suresh: Yeah. Sure. Please go on, Mr. Mohammed.

Speaker #2: Okay. Good afternoon. Thank you for your time, and congrats on the H1 results. Three questions from my side. The first question is, as you mentioned, that the H1 net profit increased but we realized that the operating cash flow declined by around 23%, and receivables increased by about 17% from the year-end.

Mohammed Al Ali: Okay. Good afternoon. Thank you for your time, and congrats on the H1 results.

[Analyst 1]: Okay. Good afternoon. Thank you for your time, and congrats on the H1 results.

[Company Representative] (Al Anwar Ceramic Tiles): Thank you.

Aronashlm Suresh: Thank you.

Mohammed Al Ali: Three questions from my side.

[Analyst 1]: Three questions from my side.

[Company Representative] (Al Anwar Ceramic Tiles): Yeah.

Aronashlm Suresh: Yeah.

Mohammed Al Ali: The first question is, as you mentioned that the H1 net profit increased, but we realized that the operating cash flow declined by around 23%, and receivables increased by about 17% from the year end to Q2. What is driving this deviation between the earnings and cash generation, and should we be concerned about the longer collection periods or customer credit quality going onwards?

[Analyst 1]: The first question is, as you mentioned that the H1 net profit increased, but we realized that the operating cash flow declined by around 23%, and receivables increased by about 17% from the year end to Q2. What is driving this deviation between the earnings and cash generation, and should we be concerned about the longer collection periods or customer credit quality going onwards?

Speaker #2: So what is driving this deviation between the earnings and cash generation, and should we be concerned about the longer collection periods or customer credit quality going onwards?

Speaker #1: Yeah. Muhammad, I think you have a very, very pertinent and a very valid question. See, the— my clarification for that will be, see, the increase in the receivables is basically because you are— the— what do you call— the revenue growth in the first half as compared to the second half of last year has been quite phenomenal.

[Company Representative] (Al Anwar Ceramic Tiles): Mohammed, I think you have a very pertinent and a very valid question. See, my clarification for that will be, see, the increase in the receivables is basically because the, what do you call, the revenue growth in the first half as compared to the second half of last year has been quite phenomenal.

Aronashlm Suresh: Mohammed, I think you have a very pertinent and a very valid question. See, my clarification for that will be, see, the increase in the receivables is basically because the, what do you call, the revenue growth in the first half as compared to the second half of last year has been quite phenomenal.

Speaker #1: If you see, our revenue has grown by almost more than $1.5 million over the last two quarters of last year. The base was lower there.

[Company Representative] (Al Anwar Ceramic Tiles): If you see, our revenue has grown by almost more than a million and a half over the last two quarters of last year. The base was lower there. That is why it appears that our receivables is also higher. Whereas our receivables, in fact, the quality of our receivables has improved in the first half as compared to the year end.

Aronashlm Suresh: If you see, our revenue has grown by almost more than a million and a half over the last two quarters of last year. The base was lower there. That is why it appears that our receivables is also higher. Whereas our receivables, in fact, the quality of our receivables has improved in the first half as compared to the year end.

Speaker #1: That is why it appears that our receivables are also higher; however, the quality of our receivables has actually improved in the first half as compared to the year-end.

Speaker #2: Okay, so clear. Moving to the second question. I'm asking about the— any updates regarding the stake sale in the— Anwar Ceramic. Have there been any discussions with any strategic investors?

Mohammed Al Ali: Okay, so clear. Moving to the second question.

[Analyst 1]: Okay, so clear. Moving to the second question.

[Company Representative] (Al Anwar Ceramic Tiles): Yeah.

Aronashlm Suresh: Yeah.

Mohammed Al Ali: I'm asking about any updates regarding the stake sale in Al Anwar Ceramic. Have there been any discussions with any strategic investors? How do you see this potential change in one of the largest shareholders affecting the company in a strategic manner?

[Analyst 1]: I'm asking about any updates regarding the stake sale in Al Anwar Ceramic. Have there been any discussions with any strategic investors? How do you see this potential change in one of the largest shareholders affecting the company in a strategic manner?

Speaker #2: And how do you see this potential change in one of the largest shareholders affecting the company in a strategic manner?

[Company Representative] (Al Anwar Ceramic Tiles): As of now, I do not have any information to share because I haven't heard anything from the strategic investor as of now regarding any prospective buyer in the pipeline or anything. I think that pertinent question can be raised in the discussion session when they come up in the next couple of weeks. They also must be coming up, Al Jazeira Services Company SAOG, who's the holding company of ours as of now. They'll also be coming up for their discussion session, and then maybe they will have more information on that subject.

Aronashlm Suresh: As of now, I do not have any information to share because I haven't heard anything from the strategic investor as of now regarding any prospective buyer in the pipeline or anything. I think that pertinent question can be raised in the discussion session when they come up in the next couple of weeks. They also must be coming up, Al Jazeira Services Company SAOG, who's the holding company of ours as of now. They'll also be coming up for their discussion session, and then maybe they will have more information on that subject.

Speaker #1: See, as of now, I do not have any information to share because I haven't heard anything from the strategic investor as of now regarding any prospective buyer in the pipeline or anything.

Speaker #1: And in those— that I think that pertinent question can be raised in the discussion session when they come up for— in the— in the next couple of weeks.

Speaker #1: They also must be coming up. Al Jazeera services, who's the holding company of us as of now, they will also be coming up for their discussion session.

Speaker #1: And then maybe they will have more information on that subject.

Speaker #2: Yeah, clear. So my last question is: with the improving profitability in H1, how should we think about the dividends going forward? For example, if we assume that earnings continue to recover in H2, is there any possibility of increasing the dividend payout, or would you prefer to retain more cash?

Mohammed Al Ali: Yeah, clear. My last question is, with the improving profitability in H1, how should we think about the dividends going forward? If we assume that the earnings continue to recover in H2, is there any possibility to increase the dividends payout, or would you prefer to retain more cash?

[Analyst 1]: Yeah, clear. My last question is, with the improving profitability in H1, how should we think about the dividends going forward? If we assume that the earnings continue to recover in H2, is there any possibility to increase the dividends payout, or would you prefer to retain more cash?

Speaker #1: I mean, that actually is a prerogative of the board, okay, but as— as we have already declared our dividend policy if you see, we will be taking a very conscious call depending on whether any requirement of cash is required for any expansion necessities and things like that.

[Company Representative] (Al Anwar Ceramic Tiles): That actually is a prerogative of the board. But as we have already declared our dividend policy, if you see, we will be taking a very conscious call depending on whether any requirement of cash is required for any expansion necessities and things like that. Otherwise, the payout should be in line with what we have done in the past.

Aronashlm Suresh: That actually is a prerogative of the board. But as we have already declared our dividend policy, if you see, we will be taking a very conscious call depending on whether any requirement of cash is required for any expansion necessities and things like that. Otherwise, the payout should be in line with what we have done in the past.

Speaker #1: Otherwise, the payout should be in line with what we have done in the past.

Speaker #2: Okay, clear. That's from my side. Thank you.

Mohammed Al Ali: Okay, clear. That is from my side. Thank you.

[Analyst 1]: Okay, clear. That is from my side. Thank you.

Speaker #1: Yeah, yeah. I think—Mr. Ashish Bhatnagar, please, you can unmute yourself.

[Company Representative] (Al Anwar Ceramic Tiles): Yeah. Yeah. I think Mr. Ashish Bhatnagar, please you can unmute yourself.

Aronashlm Suresh: Yeah. Yeah. I think Mr. Ashish Bhatnagar, please you can unmute yourself.

Speaker #2: Yeah, yeah. Hello, sir. Just wanted to know, do you have any plans to open a new showroom in H2 or H3? Because I noticed that some showrooms are closed.

Ashish Bhatnagar: Yeah. Hello, sir.

[Analyst 2]: Yeah. Hello, sir.

[Company Representative] (Al Anwar Ceramic Tiles): Hello.

Aronashlm Suresh: Hello.

Ashish Bhatnagar: Just wanted to know, have you any plan to open a new showroom in H2 or H3 because I noticed that some showrooms are closed the previous year, which are not open?

[Analyst 2]: Just wanted to know, have you any plan to open a new showroom in H2 or H3 because I noticed that some showrooms are closed the previous year, which are not open?

Speaker #2: In the previous year, which are not open.

Speaker #1: Can— can— I mean, see, there's— — it's a continuous process. We don't— we don't have any showrooms of our own, because they are all the showrooms of our dealers.

[Company Representative] (Al Anwar Ceramic Tiles): See, this is a continuous process. We don't have any showrooms of our own because they are all the showrooms of our dealers. Sometimes they relocate their showrooms. The opening of showrooms by the dealers is a continuous process. In fact, this year, we must have at least about seven or eight new showrooms that has been opened in the various regions of Oman itself. So there is no, what do you call, dearth of our showrooms in the country today.

Aronashlm Suresh: See, this is a continuous process. We don't have any showrooms of our own because they are all the showrooms of our dealers. Sometimes they relocate their showrooms. The opening of showrooms by the dealers is a continuous process. In fact, this year, we must have at least about seven or eight new showrooms that has been opened in the various regions of Oman itself. So there is no, what do you call, dearth of our showrooms in the country today.

Speaker #1: Sometimes they relocate their showrooms, and the opening of showrooms by the dealers is a continuous process. In fact, this year, we must have at least about 7 or 8 new showrooms that has been open.

Speaker #1: In various— in the various regions of Oman itself. So there is no— what do you call— dearth of our showrooms in the— in the country today.

Speaker #2: And you talked about the advantage of the anti-dumping duty, which is driving the sales. So, are you aware of the government policy for the next one year or so—how long that will continue?

Ashish Bhatnagar: And you told about that advantage of anti-dumping duty, which is-

[Analyst 2]: And you told about that advantage of anti-dumping duty, which is-

[Company Representative] (Al Anwar Ceramic Tiles): Yeah

Aronashlm Suresh: Yeah

Ashish Bhatnagar: ... driving the sales.

[Analyst 2]: ... driving the sales.

[Company Representative] (Al Anwar Ceramic Tiles): Yeah.

Aronashlm Suresh: Yeah.

Ashish Bhatnagar: Do you aware of the government policy for the next one year or something, how long that will be continue?

[Analyst 2]: Do you aware of the government policy for the next one year or something, how long that will be continue?

Speaker #2: Any— Anything you can give a light on that?

[Company Representative] (Al Anwar Ceramic Tiles): Yeah.

Aronashlm Suresh: Yeah.

Ashish Bhatnagar: Anything you can give a light on it?

[Analyst 2]: Anything you can give a light on it?

Speaker #1: Yeah. See, the anti-dumping has been— what do you call— renewed this February, by the GCC Council, for a— and extended for a further period of 5 years.

[Company Representative] (Al Anwar Ceramic Tiles): Yeah. See, the anti-dumping has been, what do you call, renewed this February by the GCC council and extended for a further period of 5 years. Okay, so this is the information which we have now and then the decree also, we have a copy of which is available even when you Google it and check it out, which means the anti-dumping should be in place for the next 5 years from this February onwards. Unless the government decides to partially withdraw it or withdraw it, which is not going to be very, what do you call, easy.

Aronashlm Suresh: Yeah. See, the anti-dumping has been, what do you call, renewed this February by the GCC council and extended for a further period of 5 years. Okay, so this is the information which we have now and then the decree also, we have a copy of which is available even when you Google it and check it out, which means the anti-dumping should be in place for the next 5 years from this February onwards. Unless the government decides to partially withdraw it or withdraw it, which is not going to be very, what do you call, easy.

Speaker #1: Okay, so this is the information that we have now, and then the decree—we also have a copy of it, which is available even, you know, when you Google it and check it out—which means the anti-dumping should be in place for the next five years from this February onwards.

Speaker #1: So unless the government decides to partially withdraw it, or withdraw it, which is not going to be very— what do you call— easy. And also, the SEPA agreement entered into between India and Oman government, also the stipulates that they are going to— what do you call— the anti-dumping and any restrictions that is there, because of these kind of investigations, will stay.

[Company Representative] (Al Anwar Ceramic Tiles): Also the CEPA agreement entered into between India and Oman government also stipulates that they are going to, what do you call, the anti-dumping and any restrictions that is there because of these kind of investigations will stay, and that will not be affected or it will not impact the CEPA agreement, the free trade agreement between the countries. So we reckon, or we believe that it should be there for at least the next 4 and a half years, assuming that we have already gone by six months now.

Aronashlm Suresh: Also the CEPA agreement entered into between India and Oman government also stipulates that they are going to, what do you call, the anti-dumping and any restrictions that is there because of these kind of investigations will stay, and that will not be affected or it will not impact the CEPA agreement, the free trade agreement between the countries. So we reckon, or we believe that it should be there for at least the next 4 and a half years, assuming that we have already gone by six months now.

Speaker #1: And that will not be affected or it will not impact the SEPA agreement, the free trade agreement between the countries. So we reckon, or we believe that it should be there for at least the next 4, 4 and a half years.

Speaker #1: Assuming that we have already gone by 6 months now.

Speaker #2: And you also spoke about the challenges of the cost during— because of the war. So do you anticipating that that will affect the second quarter and the third quarter also, or it is now over?

Ashish Bhatnagar: You also spoke about the challenges of the cost because of the war.

[Analyst 2]: You also spoke about the challenges of the cost because of the war.

[Company Representative] (Al Anwar Ceramic Tiles): Yeah.

Aronashlm Suresh: Yeah.

Ashish Bhatnagar: Do you anticipating that that will affect the Q2 and the Q3 also, or it is now over? What is the current situation now?

[Analyst 2]: Do you anticipating that that will affect the Q2 and the Q3 also, or it is now over? What is the current situation now?

Speaker #2: What is the current situation now?

Speaker #1: No, as I of the input cost escalation, but that we are now countering by ensuring that we are taking the appropriate price increases to ensure that we cover up on the escalation of the cost.

[Company Representative] (Al Anwar Ceramic Tiles): No. As I said, there are challenges in terms of the input cost escalation. But that we are now countering by ensuring that we are taking the appropriate price increases to ensure that we cover up on the escalation of the cost. Which already we have affected, and then it shouldn't affect the bottom line if we are able to sustain our volumes and the top line.

Aronashlm Suresh: No. As I said, there are challenges in terms of the input cost escalation. But that we are now countering by ensuring that we are taking the appropriate price increases to ensure that we cover up on the escalation of the cost. Which already we have affected, and then it shouldn't affect the bottom line if we are able to sustain our volumes and the top line.

Speaker #1: So which already we have affected. And then it shouldn't affect the bottom line if you are able to sustain our volumes and the top line.

Speaker #2: You— you must have been continuing to be in touch with the exports. So how do you see the H2 and Q3 quarter for the export, when you're talking about the Saudi market or— or other GCC markets?

Ashish Bhatnagar: You must be in continuous touch with the exports. So how you see that the H2 and H3 quarter for the export, when you're talking about the Saudi market or the GCC market? Anything-

[Analyst 2]: You must be in continuous touch with the exports. So how you see that the H2 and H3 quarter for the export, when you're talking about the Saudi market or the GCC market? Anything-

Speaker #2: Anything you can give some detail?

[Company Representative] (Al Anwar Ceramic Tiles): Yeah.

Aronashlm Suresh: Yeah.

Ashish Bhatnagar: ... you can give some-

[Analyst 2]: ... you can give some-

Speaker #1: Yeah. Okay. Yeah, sure. Sure. I mean, okay, the export is basically impacted now due to the very high freight cost. See, the— the freight cost, because of the war situation, the— the— both the road transport, as well as the sea transport, especially sea transport, intra-gulf is almost nil now, because of the situation.

[Company Representative] (Al Anwar Ceramic Tiles): Yeah

Aronashlm Suresh: Yeah

Ashish Bhatnagar: ... details?

[Analyst 2]: ... details?

[Company Representative] (Al Anwar Ceramic Tiles): Okay. Yeah, sure. Sure. Okay. The export is basically impacted now due to the very high freight costs. See, the freight cost, because of the war situation, both the road transport as well as the sea transport. Especially sea transport, intra-Gulf is almost nil now. Because of the situation, we are not able to send anything. Even by road, which we were able to transport prior to the war, now that has gone over the roof in terms of the logistic prices. Once the war comes to an end, or at least it stabilizes, the situation stabilizes, and then we are able to go back to normal situation, then I'm sure that we will be able to go back to those markets and then see how we can regain those markets.

Aronashlm Suresh: Okay. Yeah, sure. Sure. Okay. The export is basically impacted now due to the very high freight costs. See, the freight cost, because of the war situation, both the road transport as well as the sea transport. Especially sea transport, intra-Gulf is almost nil now. Because of the situation, we are not able to send anything.

Speaker #1: We are not able to send anything. Even by road, which we were able to transport in prior to the war—now, that has gone over the roof in terms of the logistics prices.

Aronashlm Suresh: Even by road, which we were able to transport prior to the war, now that has gone over the roof in terms of the logistic prices. Once the war comes to an end, or at least it stabilizes, the situation stabilizes, and then we are able to go back to normal situation, then I'm sure that we will be able to go back to those markets and then see how we can regain those markets.

Speaker #1: So once the war comes to an end, or at least it stabilizes the situation, stabilizes, and then we are able to go back to normal situation, then I'm sure that we will be able to go back to those markets and then see how we can regain those markets.

Speaker #2: Thank you. Thank you, sir. Thank you for the clarification.

Ashish Bhatnagar: Thank you, sir. Thank you for the points.

[Analyst 2]: Thank you, sir. Thank you for the points.

Speaker #1: Yeah. Yeah, Mana. Please, unmute yourself, please.

[Company Representative] (Al Anwar Ceramic Tiles): Yeah, Manna. Please unmute yourself, please.

Aronashlm Suresh: Yeah, Manna. Please unmute yourself, please.

Speaker #3: Good afternoon, thank you for this call.

[Analyst]: Good afternoon. Thank you for this call.

[Analyst 3]: Good afternoon. Thank you for this call.

Speaker #1: Good afternoon.

Speaker #3: When I look at the margins, they have been improving in the first quarter as well as in the second quarter also. They have been improving.

[Company Representative] (Al Anwar Ceramic Tiles): Good afternoon.

Aronashlm Suresh: Good afternoon.

[Analyst]: When I look at the margins, it has been improving in Q1 as well as in Q2, also it has been improving. I just want to understand, is this sustainable? Can we expect this to continue in H2 as well?

[Analyst 3]: When I look at the margins, it has been improving in Q1 as well as in Q2, also it has been improving. I just want to understand, is this sustainable? Can we expect this to continue in H2 as well?

Speaker #3: I just want to understand, like, is this sustainable? Can I— can we expect this to continue in the second half as well?

Speaker #1: Exactly. That is what I was just detailing a little time earlier also. If we are able to sustain the volumes and the top line, the margins—clearly, we will be able to sustain them.

[Company Representative] (Al Anwar Ceramic Tiles): Exactly. That is what I was just detailing a little time earlier also. If we are able to sustain the volumes and the top line, the margins are clearly we will be able to sustain it. Because as I already explained that we have already trying to improve our realizations to cover up our escalation in our input costs.

Aronashlm Suresh: Exactly. That is what I was just detailing a little time earlier also. If we are able to sustain the volumes and the top line, the margins are clearly we will be able to sustain it. Because as I already explained that we have already trying to improve our realizations to cover up our escalation in our input costs.

Speaker #1: Because as I already explained, that we have already— you know, trying to improve our realizations to cover up our escalation in our input cost.

Speaker #3: Okay. And what is your current utilization rate?

[Analyst]: Okay. What is the current utilization rate?

[Analyst 3]: Okay. What is the current utilization rate?

Speaker #1: Currently, we are in the range of 70 to 75 percent, depending on what product and what we are doing, yes.

[Company Representative] (Al Anwar Ceramic Tiles): Currently, we are in the range of 70% to 75%, depending on what product and what we are doing. Yes.

Aronashlm Suresh: Currently, we are in the range of 70% to 75%, depending on what product and what we are doing. Yes.

Speaker #3: Okay. Thank you.

[Analyst]: Okay. Thank you.

[Analyst 3]: Okay. Thank you.

Speaker #1: Yeah, Kushal. Please go ahead. Please unmute yourselves.

[Company Representative] (Al Anwar Ceramic Tiles): Yeah, Kushal. Please go ahead. Please unmute yourself.

Aronashlm Suresh: Yeah, Kushal. Please go ahead. Please unmute yourself.

Speaker #4: Yeah. Hi, Mr. Suresh. Thank you for the opportunity. Can you provide any—I mean, the situation of the KSA market? I mean, what are the demand dynamics and how's the ground reality?

[Analyst]: Yeah. Hi, Mr. Suresh. Thank you for the opportunity. Can you provide the situation of KSA market? What are the demand dynamics and how is the ground reality?

[Analyst 4]: Yeah. Mr. Suresh. Thank you for the opportunity. Can you provide the situation of KSA market? What are the demand dynamics and how is the ground reality?

Speaker #1: Yeah. In the— the KSA market is actually— what do you call— it's quite stagnant, I would say. I mean, we don't see that there is any growth in the market.

[Company Representative] (Al Anwar Ceramic Tiles): Yeah. The KSA market is actually quite stagnant, I would say. We don't see that there is any growth in the market. At the same time, there is no degrowth as such. Whereas, as we have also said in our chairman's report, the increase in capacity is there, is also flooding the market. At the current freight levels, we are not able to compete there, and the viability of our products entering those markets with such a high transport cost is becoming very difficult at this point of time. Once it stabilizes, probably we can go back there, because the volumes which we were looking there as compared to the overall market is very minuscule. It's very low. To that extent, once it stabilizes, we will be able to get back to that market, at least to whatever levels we were doing earlier without any problems.

Aronashlm Suresh: Yeah. The KSA market is actually quite stagnant, I would say. We don't see that there is any growth in the market. At the same time, there is no degrowth as such. Whereas, as we have also said in our chairman's report, the increase in capacity is there, is also flooding the market.

Speaker #1: At the same time, there is no degrowth as such. But, as we have already been— we have also said in our Chairman's report, the increase in capacity is there.

Speaker #1: There’s also flooding in the market. So, at the current freight levels, we are not able to compete there, and the viability of our products entering those markets with such high transport costs is becoming very difficult at this point in time.

Aronashlm Suresh: At the current freight levels, we are not able to compete there, and the viability of our products entering those markets with such a high transport cost is becoming very difficult at this point of time.

Speaker #1: Once it stabilizes, probably we can go back there, because the volumes which we were looking at there, as compared to the overall market, are very minuscule.

Aronashlm Suresh: Once it stabilizes, probably we can go back there, because the volumes which we were looking there as compared to the overall market is very minuscule. It's very low. To that extent, once it stabilizes, we will be able to get back to that market, at least to whatever levels we were doing earlier without any problems.

Speaker #1: It's— it's— it's very, very low. So to that extent, once it stabilizes, we will be able to get back to that market, at least to whatever levels we were doing earlier, without any problems.

Speaker #4: Thank you.

Speaker #1: Yeah. Yeah, Sandesh, you have to unmute yourself, please.

[Analyst]: Thank you.

[Analyst 4]: Thank you.

[Company Representative] (Al Anwar Ceramic Tiles): Yeah. Yeah, Sandesh, you have to unmute yourself, please.

Aronashlm Suresh: Yeah. Yeah, Sandesh, you have to unmute yourself, please.

Speaker #2: Yeah, hi. Am I audible? Yeah, I just wanted to understand your. Makes your revenue mix in terms of your domestic and your export market?

[Analyst]: Yeah. Hi. Am I audible?

[Analyst 5]: Yeah. Am I audible?

[Company Representative] (Al Anwar Ceramic Tiles): Yeah. Sure. Please go ahead.

Aronashlm Suresh: Yeah. Sure. Please go ahead.

[Analyst]: Yeah. I just wanted to understand your revenue mix in terms of your domestic and your export market, like how much percentage is from domestic and how much is from export. Even in export, like in GCC, if you could give some idea on how much is from KSA or any other countries there.

[Analyst 5]: Yeah. I just wanted to understand your revenue mix in terms of your domestic and your export market, like how much percentage is from domestic and how much is from export. Even in export, like in GCC, if you could give some idea on how much is from KSA or any other countries there.

Speaker #2: Like, what percentage is from domestic and how much is from export? And in exports, like in the GCC, could you give some idea on how much is from KSA or any other countries?

Speaker #1: Yeah. See, I would say now, in the current scenario, and especially for this first half, in— in the— in the historically, it has been always about 45 or 50 to 55 percent was local, and then 45 to 50 percent was exports.

[Company Representative] (Al Anwar Ceramic Tiles): Yeah. See, I would say now in the current scenario, and especially for this H1, historically, it has been always about 45% or 50% to 55% was local, and then 45% to 50% was exports. Whereas this H1, because of the challenges which I explained earlier, the local market has contributed almost 65% to 70% of the volumes, and the balance, 30% to 35% is in the export market.

Aronashlm Suresh: Yeah. See, I would say now in the current scenario, and especially for this H1, historically, it has been always about 45% or 50% to 55% was local, and then 45% to 50% was exports. Whereas this H1, because of the challenges which I explained earlier, the local market has contributed almost 65% to 70% of the volumes, and the balance, 30% to 35% is in the export market.

Speaker #1: Whereas this first half, because of the challenges which I explained earlier, the local market has contributed almost 65 to 70 percent of the volumes.

Speaker #1: And the balance, 30 percent, 30 to 35 percent, is in the export market.

Speaker #2: Okay, thank you. And I will.

[Analyst]: Okay. Thank you.

[Analyst 5]: Okay. Thank you.

Speaker #1: Predominantly, it is the GCC. See, the— the major contributor is in the GCC. Apart from a few other markets, like MN and Jordan and other things, yeah.

[Company Representative] (Al Anwar Ceramic Tiles): Predominantly, it is the GCC.

Aronashlm Suresh: Predominantly, it is the GCC.

[Analyst]: Okay.

[Analyst 3]: Okay.

[Company Representative] (Al Anwar Ceramic Tiles): The major contributor is in the GCC, apart from a few other markets like Yemen and Jordan and other things.

Aronashlm Suresh: The major contributor is in the GCC, apart from a few other markets like Yemen and Jordan and other things.

Speaker #2: Also, post the anti-dumping, how has any— how's the— how was the pricing dynamics in terms of your domestic market? Like, how are the prices have been— like, how did it started fluctuating since May 29, 2025?

[Analyst]: Also, post the anti-dumping, how was the pricing dynamics in terms of your domestic market? How have the prices been like? How did it start fluctuating since May 2025? How did you see the prices going forward till to date?

[Analyst 5]: Also, post the anti-dumping, how was the pricing dynamics in terms of your domestic market? How have the prices been like? How did it start fluctuating since May 2025? How did you see the prices going forward till to-date?

Speaker #2: How— how did you see the prices going till today?

Speaker #1: No, prices have— have been very stable. Our first goal was to increase our volumes and see how we can increase our capacity utilization.

[Company Representative] (Al Anwar Ceramic Tiles): No. Prices have been very stable. Our first goal was to increase our volumes and see how we can increase our capacity utilization than looking at the pricing. Because when we increase our capacities, there is an advantage for us to amortize our fixed costs for a larger volume. That was our basic intention once the anti-dumping duty was there. Now, though we are not in a position to, what do you call, ramp up our capacity utilization further higher because of the war situation, we are looking at an increase to offset the increase in our costs.

Aronashlm Suresh: No. Prices have been very stable. Our first goal was to increase our volumes and see how we can increase our capacity utilization than looking at the pricing. Because when we increase our capacities, there is an advantage for us to amortize our fixed costs for a larger volume.

Speaker #1: Then looking at the pricing. Because when we increase our capacities, if there is an advantage for us to amortize our fixed costs for a larger volume, that was our basic intention.

Aronashlm Suresh: That was our basic intention once the anti-dumping duty was there. Now, though we are not in a position to, what do you call, ramp up our capacity utilization further higher because of the war situation, we are looking at an increase to offset the increase in our costs.

Speaker #1: In the— once the anti-dumping was there, now we have— though we have not still able to— I mean, we are not in a position to— what do you call— ramp up our— our capacity utilization further higher, because of the war situation, we are looking at an increase to offset the increase in our costs.

Speaker #2: Okay, understood. Thank you. Thank you for that.

[Analyst]: Okay, understood. Thank you.

[Analyst 5]: Okay, understood. Thank you.

Speaker #1: Yeah. Yeah. Yeah, Joyce. Please unmute yourselves. Yeah. Yeah, how are you?

[Company Representative] (Al Anwar Ceramic Tiles): Yeah. Yeah, Joyce. Please unmute yourself. Yeah.

Aronashlm Suresh: Yeah. Yeah, Joyce. Please unmute yourself. Yeah.

Speaker #5: Hi. Good afternoon, sir. Hi, good afternoon. Sir, sir, just wanted to take a stock of the current inventory situation in the domestic market. How do you see the inventory situation?

[Analyst]: Hi. Good afternoon, sir.

[Analyst 6]: Good afternoon, sir.

[Company Representative] (Al Anwar Ceramic Tiles): Yeah.

Aronashlm Suresh: Yeah.

[Analyst]: How are you?

[Analyst 6]: How are you?

[Company Representative] (Al Anwar Ceramic Tiles): Hi, good afternoon. Fine, thank you.

Aronashlm Suresh: Good afternoon. Fine, thank you.

[Analyst]: Sir, just wanted to take a stock of the current inventory situation in the domestic market. How do you see the inventory situation, especially when we are talking about lower imports? There are only two major players producing the tiles.

[Analyst 6]: Sir, just wanted to take a stock of the current inventory situation in the domestic market. How do you see the inventory situation, especially when we are talking about lower imports? There are only two major players producing the tiles.

Speaker #5: Especially when we are talking about lower— lower imports, and there are only two players, major players, producing the tiles. So what's— what's the current inventory situation, and— and also on the demand situation, how do you see the demand?

[Company Representative] (Al Anwar Ceramic Tiles): Yeah.

Aronashlm Suresh: Yeah.

[Analyst]: What is the current inventory situation, and also on the demand situation, how do you see the demand? If you can quantify it will be much appreciated.

[Analyst 6]: What is the current inventory situation, and also on the demand situation, how do you see the demand? If you can quantify it will be much appreciated.

Speaker #5: What's—if you can quantify it, it will be much appreciated.

Speaker #1: Okay. Quantifying in terms of absolute numbers may be difficult, but as a percentage, I can tell you that there has been a substantial reduction in the inventory of imported materials, which used to be there in the last few years.

[Company Representative] (Al Anwar Ceramic Tiles): Okay. See, quantifying in terms of absolute numbers may be difficult, but as a percentage, I can tell you that there has been a substantial reduction in the inventory of the imported materials, which used to be there in the last few years. New imports have not been able to come in because of very high freight costs, and also there has been a substantial increase in the gas costs and the input costs, even in the manufacturing areas in India, which was one of the major country which was exporting into Oman. To that extent, the inventory has substantially come down. That is very visible because our local demand has considerably increased. In fact, we are looking at further growth in the Oman market because of very low inventories of outside materials.

Aronashlm Suresh: Okay. See, quantifying in terms of absolute numbers may be difficult, but as a percentage, I can tell you that there has been a substantial reduction in the inventory of the imported materials, which used to be there in the last few years. New imports have not been able to come in because of very high freight costs, and also there has been a substantial increase in the gas costs and the input costs, even in the manufacturing areas in India, which was one of the major country which was exporting into Oman.

Speaker #1: Because new imports have not been able to come in, because of very, very high freight costs, and also there has been a substantial increase in the gas costs and— what do you call— on the input costs, even in the manufacturing areas in India, which was one of the major countries which was exporting into Oman.

Speaker #1: So to that extent, the inventory has substantially come down. That is very visible because we have— our— our local demand has considerably increased, and in fact, we— we are looking at further growth in the Oman market, because of very low inventories of outside materials.

Aronashlm Suresh: To that extent, the inventory has substantially come down. That is very visible because our local demand has considerably increased. In fact, we are looking at further growth in the Oman market because of very low inventories of outside materials.

Speaker #1: But on the quantification side, it may be difficult for me to quantify as to what percent— I mean, I would say that maybe what is available in the market now may be less than 10 to 15 percent of what it used to be earlier.

[Company Representative] (Al Anwar Ceramic Tiles): But on the quantification side, it may be difficult for me to quantify as to what percentage. I would say that maybe what is available in the market now may be less than 10% to 15% of what it used to be earlier.

Aronashlm Suresh: On the quantification side, it may be difficult for me to quantify as to what percentage. I would say that maybe what is available in the market now may be less than 10% to 15% of what it used to be earlier.

Speaker #5: Send it to 15 percent lower. Only—

[Analyst]: 10% to 15% lower?

[Analyst 6]: 10% to 15% lower?

Speaker #1: No, no, no. It is almost— I would say 80 percent lower.

[Company Representative] (Al Anwar Ceramic Tiles): No.

Aronashlm Suresh: No.

[Analyst]: Only-

[Analyst 6]: Only-

[Company Representative] (Al Anwar Ceramic Tiles): It is almost, I would say 80% lower.

Aronashlm Suresh: It is almost, I would say 80% lower.

Speaker #5: Okay. And how do you see the demand? When you're saying that the pressure from imports is reducing, but at the same time, you know, you were pushing only a very small, marginal improvement in terms of sales.

[Analyst]: Okay.

[Analyst 6]: Okay.

[Company Representative] (Al Anwar Ceramic Tiles): Yeah.

Aronashlm Suresh: Yeah.

[Analyst]: How do you see the demand when you are saying that the pressure from imports are reducing, but at the same time, you were pushing only very small marginal improvement in terms of sales. Is it a function of overall demand coming down or is it something else?

[Analyst 6]: How do you see the demand when you are saying that the pressure from imports are reducing, but at the same time, you were pushing only very small marginal improvement in terms of sales. Is it a function of overall demand coming down or is it something else?

Speaker #5: Is it a function of overall demand coming down, or is it something else?

Speaker #1: No, the overall demand is not coming down. All— all this time, probably what happened was they were all liquidating, whatever inventories they had. So we will have to wait and see.

[Company Representative] (Al Anwar Ceramic Tiles): No, the overall demand is not coming down. All this time probably what happened was they were all liquidating whatever inventories they had. We will have to wait and see. The next two quarters will be very crucial for us to understand the spike in the demand because of a lower inventory. Because up to almost the May or June, almost up to April or May, the old inventory was being diluted in the market. They also kept certain inventory because they thought probably they will also able to obtain a higher price and things like that. Now that it is all coming to an end, now we have to see whether there will be a spike. As I also said earlier, even our local volumes have gone up pretty substantially higher.

Aronashlm Suresh: No, the overall demand is not coming down. All this time probably what happened was they were all liquidating whatever inventories they had. We will have to wait and see. The next two quarters will be very crucial for us to understand the spike in the demand because of a lower inventory, because up to almost the May or June, almost up to April or May, the old inventory was being diluted in the market.

Speaker #1: The next two quarters will be very crucial for us to understand the, you know, the spike in demand because of lower inventory.

Speaker #1: Because up to almost the May or June, almost up to April or May, the inventory was being— you know, the old inventory was being diluted in the market.

Speaker #1: Okay. They also kept certain inventory because they thought probably they will also be able to obtain a higher price and things like that. So now that it's all coming to an end, now we have to see whether it will— it will— there will be a spike.

Aronashlm Suresh: They also kept certain inventory because they thought probably they will also able to obtain a higher price and things like that. Now that it is all coming to an end, now we have to see whether there will be a spike. As I also said earlier, even our local volumes have gone up pretty substantially higher.

Speaker #1: And as I also said earlier, even our local volumes have gone up, you know, pretty substantially higher.

Speaker #5: Okay. And what's the average realization that we had during the first— first half of the year?

[Analyst]: Okay. What is the average realization that we had during the H1 of the year?

[Analyst 6]: Okay. What is the average realization that we had during the H1 of the year?

Speaker #1: The average realization was in the range of about.

[Company Representative] (Al Anwar Ceramic Tiles): The average realization was in the range of about-

Aronashlm Suresh: The average realization was in the range of about-

Speaker #5: From the local market is what?

[Analyst]: From the local market is what-

[Analyst 6]: From the local market is what-

Speaker #1: From the local market, it was in the range of about 1.4, 1.45, kind of.

[Company Representative] (Al Anwar Ceramic Tiles): From the local market, was in the range of about 1.4, 1.45 kind of-

Aronashlm Suresh: From the local market, was in the range of about 1.4, 1.45 kind of-

Speaker #5: 1.4. And what was it for total?

[Analyst]: 1.4. What was it for total?

[Analyst 6]: 1.4. What was it for total?

Speaker #1: Almost in the same range, because when we say local market and exports, because exports predominantly we sell the— what do you call— grade one, whereas this market, you have all, you know, all grades are sold here, plus the— what do you call— the transportation cost to the other markets are a little higher.

[Company Representative] (Al Anwar Ceramic Tiles): Almost in the same range. Because when we say local market and exports, because exports predominantly, we sell the, what do you call? Grade one, whereas this market, you have all grades are sold here. Plus the, what do you call? The transportation cost to the other markets are little higher. So, it gets averaged out.

Aronashlm Suresh: Almost in the same range. Because when we say local market and exports, because exports predominantly, we sell the, what do you call? Grade one, whereas this market, you have all grades are sold here. Plus the, what do you call? The transportation cost to the other markets are little higher. So, it gets averaged out.

Speaker #1: So— so it gets averaged out.

Speaker #5: So, if inventory levels are lower and demand is still intact, when do you expect to see some kind of a restocking buy for these leaders?

[Analyst]: If inventory levels are lower and demand is still intact, when do you expect to see some kind of a restocking by all these leaders?

[Analyst 6]: If inventory levels are lower and demand is still intact, when do you expect to see some kind of a restocking by all these leaders?

Speaker #1: It is going to be difficult. It might be very, very difficult in the— in the near future, because of very, very high— what do you call— freight cost.

[Company Representative] (Al Anwar Ceramic Tiles): It is going to be difficult. It might be very difficult in the near future because of very high, what do you call, freight cost. Today, freight cost is a big cost in the overall cost for bringing in the materials into Oman. Today, from India itself, it is anywhere between $2,500 to $3,000 per container. Which is prohibitive for anybody to bring in, which means they will have to spend almost $2 per square meter to bring in the material and fill it here, which will become very unviable for them. Added to that, even the base cost itself in India has gone up substantially because of increase in the natural gas cost there. It has gone up almost three times. There, the cost of production has also gone up.

Aronashlm Suresh: It is going to be difficult. It might be very difficult in the near future because of very high, what do you call, freight cost. Today, freight cost is a big cost in the overall cost for bringing in the materials into Oman. Today, from India itself, it is anywhere between $2,500 to $3,000 per container. Which is prohibitive for anybody to bring in, which means they will have to spend almost $2 per square meter to bring in the material and fill it here, which will become very unviable for them.

Speaker #1: Today, freight cost is a— is a big cost in the overall cost for bringing in the materials into Oman. So today, from India itself, it is anywhere between 2,500 to 3,000 dollars per container.

Speaker #1: So, which is prohibitive for anybody to bring in—which means they will have to spend almost $2 per square meter to bring in the material and keep it and sell it here.

Speaker #1: Which will become very, very unviable for them. Added to that, even the base cost itself in India has gone up substantially because of the increase in natural gas costs there.

Aronashlm Suresh: Added to that, even the base cost itself in India has gone up substantially because of increase in the natural gas cost there. It has gone up almost three times. There, the cost of production has also gone up. Both put together, there is going to be some more time before it eases out, and then again, the export starts from there into this region.

Speaker #1: It has gone up by almost 3 times. So their cost of production has also gone up. So both put together, there is going to be a— you know, some more time before it eases out, and then, you know, again, the export starts from there into this region.

[Company Representative] (Al Anwar Ceramic Tiles): Both put together, there is going to be some more time before it eases out, and then again, the export starts from there into this region.

Speaker #5: Okay. So my question was from the perspective of the local producers. So do you— do you— are you— have you started seeing any of the restocking by any of these dealers coming up, or do you expect it to happen probably maybe by towards the end of the year or fourth quarter?

[Analyst]: My question was from the perspective of the local producers. Have you started seeing any of the restocking by any of these dealers coming up, or do you expect it to happen probably maybe by towards the end of the year or Q4? Do you have any feelers on that?

[Analyst 6]: My question was from the perspective of the local producers. Have you started seeing any of the restocking by any of these dealers coming up, or do you expect it to happen probably maybe by towards the end of the year or Q4? Do you have any feelers on that?

Speaker #5: Do you have any feelings on that?

Speaker #1: No, no feelings on that. As I said, everybody is waiting and watching for the overall cost to come down. Otherwise, it's not viable for them, because they will not be able to compete in the local market with the local producers.

[Company Representative] (Al Anwar Ceramic Tiles): No feelers on that. As I said, everybody is waiting and watching for the overall cost to come down. Otherwise, it is not viable for them because they will not be able to compete in the local market with the local producers. Their cost will be substantially higher than what we will be able to provide here.

Aronashlm Suresh: No feelers on that. As I said, everybody is waiting and watching for the overall cost to come down. Otherwise, it is not viable for them because they will not be able to compete in the local market with the local producers. Their cost will be substantially higher than what we will be able to provide here.

Speaker #1: Which will be substantially— their cost will be substantially higher than what we will be able to provide here.

Speaker #5: Yeah. If they cannot import, at the same time, they can, you know, purchase from the local producers, right?

[Analyst]: Yeah. If they cannot import, at the same time, they can purchase from the local producers, right?

[Analyst 6]: Yeah. If they cannot import, at the same time, they can purchase from the local producers, right?

Speaker #1: Yes, that's— that's happening now. That— that started happening.

[Company Representative] (Al Anwar Ceramic Tiles): Yes. That is happening now. That started happening.

Aronashlm Suresh: Yes. That is happening now. That started happening.

Speaker #5: Okay.

Speaker #1: That's clearly— that's clearly visible. That's why I said the next two quarters will be— you know, you will be able to get an idea as to where we are heading towards.

[Analyst]: Okay

[Analyst 6]: Okay

[Company Representative] (Al Anwar Ceramic Tiles): That is clearly visible. That is why I said next 2 quarters you will be able to get an idea as to where we are heading towards.

Aronashlm Suresh: That is clearly visible. That is why I said next 2 quarters you will be able to get an idea as to where we are heading towards.

Speaker #5: All right. Okay. Yeah, that's it. Thank you.

[Analyst]: All right. Okay. All right, sir. Thank you.

[Analyst 6]: All right. Okay. All right, sir. Thank you.

Speaker #1: Yeah. Yeah. Somebody else wanted any question? Richa, I think Richa wanted to have a?

[Company Representative] (Al Anwar Ceramic Tiles): Yeah. Somebody else wanted any question? Richa, I think Richa wanted to have a

Aronashlm Suresh: Yeah. Somebody else wanted any question? Richa, I think Richa wanted to have a

Speaker #6: Hi. The questions are already answered.

[Analyst]: Hi. The questions are already answered.

[Analyst 7]: Hi. The questions are already answered.

Speaker #1: Okay. Fine. All right.

Speaker #6: Thank you.

[Company Representative] (Al Anwar Ceramic Tiles): Okay, fine. All right.

Aronashlm Suresh: Okay, fine. All right.

Speaker #1: Okay, okay. Thank you so much. Thank you. Yeah. Rita, I think you can unmute yourself, please. Yeah.

[Analyst]: Thank you.

[Analyst 7]: Thank you.

[Company Representative] (Al Anwar Ceramic Tiles): Okay. Thank you so much. Thank you. Yeah, Vikram. I think you can-

Aronashlm Suresh: Okay. Thank you so much. Thank you. Yeah, Vikram. I think you can-

[Analyst]: Yes

[Analyst 8]: Yes.

[Company Representative] (Al Anwar Ceramic Tiles): unmute yourself, please. Yeah.

Aronashlm Suresh: ... unmute yourself, please. Yeah.

Speaker #3: Hello. Thank you for the call. I just had one question. So, apart from freight costs, which obviously have gone up, any other item in your cost base that has gone up, or likely to stay elevated for the next 6 months?

[Analyst]: Hello. Thank you for the call. I just had one question. Apart from freight costs, which obviously have gone up, any other item in your cost base that has gone up or likely to stay elevated for the next six months?

[Analyst 8]: Hello. Thank you for the call. I just had one question. Apart from freight costs, which obviously have gone up, any other item in your cost base that has gone up or likely to stay elevated for the next six months?

Speaker #1: Yeah. Our input cost, like, see, all our imported materials, the raw materials which we import from various parts of the world, especially from Spain, Italy, and some things from India and all.

[Company Representative] (Al Anwar Ceramic Tiles): Yeah. Our input costs, like see, all our imported materials, the raw materials which we import from various parts of the world, especially from Spain, Italy, and some things from India and all. Even those input costs have gone up, basically because of the freight. Even the inward freight also has substantially gone up with the war surcharge and other things. Those things, as a percentage of the total cost may appear to be low, but still there is impact on our costing. That is where we said that we are now trying to pass it on to the trade.

Aronashlm Suresh: Yeah. Our input costs, like see, all our imported materials, the raw materials which we import from various parts of the world, especially from Spain, Italy, and some things from India and all. Even those input costs have gone up, basically because of the freight.

Speaker #1: Even those input costs have gone up, basically because of the freight. Even the inbound freight has also substantially gone up, with the World Research Charge and other things.

Aronashlm Suresh: Even the inward freight also has substantially gone up with the war surcharge and other things. Those things, as a percentage of the total cost may appear to be low, but still there is impact on our costing. That is where we said that we are now trying to pass it on to the trade.

Speaker #1: So those things, as a percentage of the total cost, may appear to be low, but still, there is an impact on our costing.

Speaker #1: That is where we said that we are now trying to pass it on to the trade.

Speaker #3: Okay. But the energy cost remains steady.

[Analyst]: Okay. But the energy cost remains steady.

[Analyst 8]: Okay, but the energy cost remains steady.

Speaker #1: Yeah. Yeah. Energy cost and other— other local costs and all remain steady. Yes. That's right.

[Company Representative] (Al Anwar Ceramic Tiles): Yeah. Energy cost and other local costs and all remain steady. Yes, that's right.

Aronashlm Suresh: Yeah. Energy cost and other local costs and all remain steady. Yes, that's right.

Speaker #3: Okay. Thank you very much.

[Analyst]: Okay. Thank you very much.

[Analyst 8]: Okay. Thank you very much.

Speaker #1: Thank you. Yeah. Any other questions? Any other queries? Any clarifications? Yeah, Kushal? You unmute yourself.

[Company Representative] (Al Anwar Ceramic Tiles): Thank you. Yeah. Any other questions? Any other queries? Any clarifications? Yeah, Kushal. Unmute yourself.

Aronashlm Suresh: Thank you. Yeah. Any other questions? Any other queries? Any clarifications? Yeah, Kushal. Unmute yourself.

Speaker #6: I just want to clear my— yeah. Am I audible? Yeah. So I just want to clear myself. If someone is exporting from India, under the SEPA, the customs duty is— I mean, not applicable, but the anti-dumping is still applicable, right?

[Analyst]: I just want to clear. Yeah. Am I audible?

[Analyst 4]: I just want to clear. Yeah. Am I audible?

[Company Representative] (Al Anwar Ceramic Tiles): Yeah.

Aronashlm Suresh: Yeah.

[Analyst]: I just want to clear myself. If someone is exporting from India,

[Analyst 4]: I just want to clear myself. If someone is exporting from India-

[Company Representative] (Al Anwar Ceramic Tiles): Yeah

Aronashlm Suresh: Yeah.

[Analyst]: under the CEPA, the custom duty is not applicable, but the anti-dumping duty is still applicable, right?

[Analyst 3]: ... under the CEPA, the custom duty is not applicable, but the anti-dumping duty is still applicable?

Speaker #1: That's right. That's right. That's right. The minimum rates applicable there are about 42%, which can go up to 107%.

[Company Representative] (Al Anwar Ceramic Tiles): That is right.

Aronashlm Suresh: That is right.

[Analyst]: Thank you.

[Analyst 4]: Thank you.

[Company Representative] (Al Anwar Ceramic Tiles): The minimum rates applicable there is about 42%, which can go up to 107%.

Aronashlm Suresh: The minimum rates applicable there is about 42%, which can go up to 107%.

Speaker #6: Okay. Thank you.

Speaker #1: Yeah. Sure. Any other queries? Yeah? Amit?

[Analyst]: Okay, thank you.

[Analyst 4]: Okay, thank you.

[Company Representative] (Al Anwar Ceramic Tiles): Yeah, sure. Any other queries? Yeah, Amit? There is a question I think somebody asked in the chat box, sir. Okay. The question was, what was the inflation level in Q2? Yeah. I think I replied that. That's why I think. Okay, perfect. Already I had said that 70% to 75% utilization. I had already replied that, yes. Yeah. Oh, perfect. Yeah. I think someone is. Yeah. Okay. Any other questions? Any queries? If there are no more queries, maybe we can wait for another 2 minutes before we conclude the meeting. Yeah, Mohammed, you have a query? Please unmute yourself, please.

Aronashlm Suresh: Yeah, sure. Any other queries? Yeah, Amit?

Speaker #3: There is a question, I think, somebody asked in the chat box, sir. The question was, what were the inflation levels in Q2?

[Analyst 9]: There is a question I think somebody asked in the chat box, sir.

Aronashlm Suresh: Okay. The question was?

[Analyst 9]: What was the inflation level in Q2?

Speaker #1: Yeah. I think I replied that. That's why I think they must have— already I have said that 70 to 75 percent utilization. I had already replied that, yes.

Aronashlm Suresh: Yeah. I think I replied that. That's why I think-

[Analyst 9]: Okay, perfect.

Aronashlm Suresh: ... already I had said that 70% to 75% utilization. I had already replied that, yes.

Speaker #1: Yeah.

Speaker #3: Okay. Perfect.

Speaker #1: Yeah. I think someone is— yeah. Okay. Any other questions? Any queries? If there are no more queries, maybe we can wait for another 2 minutes, before we conclude the meeting.

[Analyst 9]: Yeah. Perfect. Yeah.

Aronashlm Suresh: I think someone is. Yeah. Okay. Any other questions? Any queries? If there are no more queries, maybe we can wait for another two minutes before we conclude the meeting. Yeah, Mohammed, you have a query? Please unmute yourself, please.

Speaker #1: Yeah? Mohammad, do you have a query? Please unmute yourself, please.

Speaker #3: Yes. Just one question. When do you expect the utilization rate to reach around, like, 85, 90 percent? Because currently you're speaking the utilization rate is 75 to 80 percent, if I'm not wrong.

Mohammed Al Ali: Yes. Just one question. When do you expect the utilization rate to reach around 85%, 90%? Because currently you're stating the utilization rate is 75% to 80%, if I'm not wrong.

[Analyst 1]: Yes. Just one question. When do you expect the utilization rate to reach around 85%, 90%? Because currently you're stating the utilization rate is 75% to 80%, if I'm not wrong.

Speaker #1: That's right. That's right. See, I think— see, the local market is supporting us quite well for the 75 percent. Okay. And then it can further go up also if it is going to further improve, and then the imports are going to be still not coming in.

[Company Representative] (Al Anwar Ceramic Tiles): That's right.

Aronashlm Suresh: That's right.

Mohammed Al Ali: Yeah.

[Analyst 1]: Yeah.

[Company Representative] (Al Anwar Ceramic Tiles): See, the local market is supporting us quite well for the 75%. Okay. It can further go up also if it is going to further improve, and the imports are going to be still not coming in. But we will be able to increase it more when the export market opens up fully for us. Because there, as I explained to you, the challenge is that we are not able to service the export markets presently. Once the situation stabilizes and it opens up, I'm sure we will be able to increase our capacity utilization.

Aronashlm Suresh: See, the local market is supporting us quite well for the 75%. Okay. It can further go up also if it is going to further improve, and the imports are going to be still not coming in. But we will be able to increase it more when the export market opens up fully for us, because there, as I explained to you, the challenge is that we are not able to service the export markets presently. Once the situation stabilizes and it opens up, I'm sure we will be able to increase our capacity utilization.

Speaker #1: But we will be able to increase it more when the export market opens up fully for us. Because there we have— as I explained to you, the challenges is that we are not able to, you know, service the export markets present, presently.

Speaker #1: If that—once the situation stabilizes and it opens up, I'm sure we will be able to increase our capacity utilization.

Speaker #3: Are there any expansion plans you are intending to pursue in the short to medium term?

Mohammed Al Ali: And any expansion plans you are intending to have in the short to medium term?

[Analyst 1]: Any expansion plans you are intending to have in the short to medium term?

Speaker #1: No. First, not—not immediately, but first we are looking at—what do you call—the capacity utilization of 100 percent is our first goal.

[Company Representative] (Al Anwar Ceramic Tiles): No. Not immediately, but first we are looking at, what do you call, the capacity utilization of 100% is our first goal. After that, we will be looking at.

Aronashlm Suresh: No. Not immediately, but first we are looking at, what do you call, the capacity utilization of 100% is our first goal. After that, we will be looking at.

Speaker #1: After that, we will be looking at...

Speaker #3: Clear. Thank you.

Speaker #1: Okay. Yeah, Shahrur, I think you had— Shahrur? You had a question? Please unmute yourself.

Mohammed Al Ali: Clear. Thank you.

[Analyst 1]: Clear. Thank you.

[Company Representative] (Al Anwar Ceramic Tiles): Okay. Yeah, Sharur, I think you had Sharur, you had a question? Please unmute yourself.

Aronashlm Suresh: Okay. Yeah, Sharur, I think you had Sharur, you had a question? Please unmute yourself.

Speaker #4: Yes. Hi, thank you. I just had a couple of questions: Would you be kind enough to tell us what was the utilization rate during this quarter, during the second quarter?

[Analyst]: Yes. Hi.

[Analyst 10]: Yes.

[Analyst]: Yeah, hi.

Aronashlm Suresh: Yeah.

[Analyst]: Thank you. I just had a couple of questions. Would you be kind enough to give us what was the utilization rate during this quarter, during Q2?

[Analyst 10]: Thank you. I just had a couple of questions. Would you be kind enough to give us what was the utilization rate during this quarter, during Q2?

Speaker #1: Yeah. Second quarter was, as I said, it's in the same range, because the entire year— I mean, first half itself, it was in anywhere between 70 to 75 percent.

[Company Representative] (Al Anwar Ceramic Tiles): Yeah. Q2 was, as I said, it's in the same range. Because the entire year, H1 itself, it was anywhere between 70% to 75%. We have been maintaining that.

Aronashlm Suresh: Yeah. Q2 was, as I said, it's in the same range. Because the entire year, H1 itself, it was anywhere between 70% to 75%. We have been maintaining that.

Speaker #1: We have been maintaining that.

Speaker #4: Right. Okay. And when you talk about the price increase—to pass on the additional costs—how much are we talking in terms of percentage, if you were to give a ballpark number?

[Analyst]: Right. Okay. When you talk about the price increase to pass on the additional costs, how much are we talking in terms of percentage, if you were to give a ballpark number?

[Analyst 10]: Okay. When you talk about the price increase to pass on the additional costs, how much are we talking in terms of percentage, if you were to give a ballpark number?

Speaker #1: See, it also depends on product to product. Okay. As size to size. So I would say it can vary anywhere between 5 to 10 percent.

[Company Representative] (Al Anwar Ceramic Tiles): See, it also depends on product to product, okay, size to size. So I would say it can vary anywhere between 5% to 10%.

Aronashlm Suresh: See, it also depends on product to product, okay, size to size. So I would say it can vary anywhere between 5% to 10%.

Speaker #4: Right. And then 5 to 10 percent, what still keeps you competitive after the duties and, you know, from the imports? Okay. And my second question is, obviously, the cost of production in India and the region has gone up, and that is partly why their commodity is also getting more expensive now.

[Analyst]: Right. 5% to 10% would still keep you competitive after the-

[Analyst 10]: 5% to 10% would still keep you competitive after the-

[Analyst]: That's right.

Aronashlm Suresh: That's right.

[Analyst]: duties and from that point.

[Analyst 3]: ... duties and from that point.

[Analyst]: That's right.

Aronashlm Suresh: That's right.

[Analyst]: Okay. My second question is, obviously the cost of production in India and the region has gone up, and that is partly why their commodity is also getting more expensive now. What if things resolve and the freights go back to the prices that they were before and the gas prices also come down. If things were to resolve like pre-war, would you be able to compete with the dump inventory after this anti-dumping duties?

[Analyst 10]: Okay. My second question is, obviously the cost of production in India and the region has gone up, and that is partly why their commodity is also getting more expensive now. What if things resolve and the freights go back to the prices that they were before and the gas prices also come down. If things were to resolve like pre-war, would you be able to compete with the dump inventory after this anti-dumping duties?

Speaker #4: What if, you know, things resolve and the freights go back to the prices that they were before, and the gas prices also come down?

Speaker #4: If things were to resolve, like pre-war, would you be able to compete with the dumped inventory after these anti-dumping duties?

Speaker #1: Of course. Of course. See, as I explained to you, maybe I don't know, you joined in a little late. I'm not sure. I was explaining also that the duties are anywhere between 42 to 107 percent, depending on who the exporter from India is.

[Company Representative] (Al Anwar Ceramic Tiles): Of course. See, as I explained to you, maybe, I don't know, you joined in a little late, I'm not sure. I was explaining also that the duties are anywhere between 42% to 107%, depending on who the exporter from India is. Whatever is the cost that is going to go down, even if they go to the pre-war cost levels also, still a 42% duty here is pretty steep. It is going to be very difficult for them to compete with our pricing. In which event, even our input costs also will stabilize. Because today our increase in our input cost is mainly because of the increase in the freight cost, which we are paying for our imported materials, which also will come down, and then we will also become more competitive at that point of time. Hope I've answered your question.

Aronashlm Suresh: Of course. See, as I explained to you, maybe, I don't know, you joined in a little late, I'm not sure. I was explaining also that the duties are anywhere between 42% to 107%, depending on who the exporter from India is. Whatever is the cost that is going to go down, even if they go to the pre-war cost levels also, still a 42% duty here is pretty steep.

Speaker #1: So whatever is the— is the cost that is going to go down, even if they go to the pre-war cost levels also, still a 42 percent duty here is pretty steep.

Speaker #1: So it is going to be very difficult for them to compete with our pricing. And in which event, even our— what do you call— input cost also will stabilize, because today our increase in our— in our input cost is mainly because of the increase in the freight cost, which we are paying for our imported materials.

Aronashlm Suresh: It is going to be very difficult for them to compete with our pricing. In which event, even our input costs also will stabilize, because today our increase in our input cost is mainly because of the increase in the freight cost, which we are paying for our imported materials, which also will come down, and then we will also become more competitive at that point of time. Hope I've answered your question.

Speaker #1: Which also will come down. And then we will also become more competitive at that point of time. Hope I've answered your question.

Speaker #4: Yes, perfect. Thank you. Thank you for the answer.

[Analyst]: Yes, perfect. Thank you. Thank you for the answer.

[Analyst 10]: Yes, perfect. Thank you. Thank you for the answer.

Speaker #1: Yeah. Any other questions, queries? Otherwise, we can wind up. We can conclude the meeting. If there are no further questions. We'll give another minute before we conclude.

[Company Representative] (Al Anwar Ceramic Tiles): Any other questions, queries? Otherwise, we can wind up. We can conclude the meeting if there are no further questions. We will give one other minute before we conclude. Okay. As we see that there are no further questions or clarifications, we will conclude this discussion session. Thank you, ladies and gentlemen, who were present here. Yeah. Any questions?

Aronashlm Suresh: Any other questions, queries? Otherwise, we can wind up. We can conclude the meeting if there are no further questions. We will give one other minute before we conclude. Okay. As we see that there are no further questions or clarifications, we will conclude this discussion session. Thank you, ladies and gentlemen, who were present here. Yeah. Any questions?

Speaker #1: Okay. As we see that there are no further questions or clarifications, we will conclude this discussion session. Thank you, ladies and gentlemen, who were present here.

Speaker #1: And yeah. Any questions?

Speaker #3: Thank you. Thank you, Suresh. Thank you very much.

[Analyst]: Thank you. Thank you, Suresh. Thank you very much.

[Analyst 3]: Thank you. Thank you, Suresh. Thank you very much.

[Company Representative] (Al Anwar Ceramic Tiles): Thank you. Thank you so much. Thank you, everyone. Okay. Hope to see you all once again in the coming future. Thank you so much.

Aronashlm Suresh: Thank you. Thank you so much. Thank you, everyone. Okay. Hope to see you all once again in the coming future. Thank you so much.

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